Full text of Commercial and Financial Chronicle : April 9, 1959, Vol. 189, No. 5836

View original document

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

ESTABLISHED JS39

tyjItJ-QMii-.-

Reg. U. S. Pat. Office

Volume 189

Number 5836

EDITORIAL

■

V-; i-... ;;.y

Chester Bowles, that staunch

balanced

of his countrymen

many

opponent of the

budget, continues to complain that
seem

ford to

amounts he

build

their

Bowles, unfortunately,

alone in

the

wealth.

our

objectives: "To pro¬
achieve an ade¬
quate rate of economic growth; to maintain substantial

this

old, old story, but this whole
question of what we can or can not "afford" to do
is

one

which deserves rather

set

—

There

has been

economic sub¬

try.. /. I hope, at least to help to clar¬

Marriner S. Eccles

ify

some

with

this

inquiry,

of the aspects of the dilem¬
which we are confronted.

should recognize that our objec¬
and an adequate rate of eco¬
also the Communist goals. We must

William F.

Butler

momentary
of

are

page

by Mr. Eccles before the Joint Economic Committee
the Economic Report, Washington, D. C., March 25, 1959.

THIS

Security

statement

ISSUE—Candid

successively larger doses will be required,
Continued on page 35

address

Wharton

Ranking

Pennsylvania,

Dr. Butler before the Institute of Investment
School of Finance and Commerce, University of

Philadelphia, March 27, 1959.

photos taken at the 33rd Annual Dinner of the New

Dealers Association

in today's PICTORIAL SECTION.

appear

State, Municipal

1. $•-Government,

Public

and

Housing.

State and

STATE

Municipal

AND

MUNICIPAL

Lester, Ryons & Co.
623 So. Hope Street, Los

Securities
telephone:

Members New York Stock Exchange

BONDS

Associate Member American Stock Exchange

•'

•

Offices in Claremont, Corona del Mar,

CORN EXCHANGE

BROKERS

DEALERS

•

30 BROAD ST.,

(

Burnham

and

MEMBERS NEW YORK AND

15 BROAD STREET, NEW
CABLE:

Company

YORK 5, N. Y.

•

014-1400

;

San Diego, Santa Ana, Santa Monica

OF NEW YORK

Inquiries Invited
California

Bond Dept.

Teletype: NY 1-708

TK.ETYRE NY 1-22*2

THE

Pasadena, Pomona, Redlands, Riverside,

AMERICAN STOCK EXCHANGES

COBURNHAM

BOND DEPARTMENT

Encino, Glendale, Hollywood, Long Beach,

THE FIRST NATIONAL CITY BANK

BANK
;nt
bond department

•

UNDERWRITERS

CHEMICAL

Agency

Bonds and Notes

California

HAnover 2-3700

Public Housing

Angeles 17,

Members Pacific Coast Exchange-

econ¬

our

analogy. Inflation produces a
exhilaration but, as is the case in the use

narcotics,

that
as

that's a pertinent

In fact

nomic

growth

advanced

is not growing

—

tives of full employment

Continued

York

millennium, which does not
however, that we should not
sights high, far beyond our

and also every other democratic couiw

PICTURES

DEALERS

our

been

rapidly as it
could and should, and that efforts to
avoid inflation are responsible for
our lack of growth.
The proponents
of this view argue that we should
forget about inflation and concen¬
trate on growth.
If we have creep¬
ing inflation — defined as price in¬
creases averaging 3% per annum or
less
that is regarded as a small
price to pay for growth.
It is my considered judgment that
this line of argument is not only
mistaken—it is positively dangerous.
Inflation and economic growth are
no more compatible than marijuana
and individual health and well-being.
omy

ject which has been more fully dis¬
cussed, and with disappointing re¬
sults, by the government as well as
many
other groups of 'our, society

page

have

present achievements.

attention than

getting. No one in his right mind doubts that
the people of this country could, if they made the
necessary effort and if the economic system were
permitted to function in its normal way, could
without disaster support a great deal of New Deal¬
like paternalism. Whether they could "afford"
to do these things is another matter. It would
require more vigorous work than the rank and
file are now willing to perform, and a more
smoothly functioning economic system than we
have now—one which gears itself more closely to
on

the

mean,

it is

Continued

In the process, I shall consider the arguments that

ever,
is to reach these objectives
under the system of Democratic cap¬
italism.
I, for one, do not believe

ity.

stability in the price level and thus
prevent inflation."
The trick, how¬

All

What I wish to discuss is the range of problems asso¬
ciated with achieving economic growth and price stabil¬

This inquiry aims to cover three

vide substantially full employment; to

way

supply growth and the government achieves
substantial surplus, the wage-price spiral will go on.

and to render it all

painless to try to spend

theory for price stability is
the effective money supply
with growth in real production and the average wage in¬
crease to
productivity. In predicting we will resume our
4% growth rate by late 1959 or early 1960 and that
196Q will be a year of great prosperity, followed by
moderate recession in 1961 which will not affect our longterm growth rate, Dr. Butler doubts we can exceed this
trend rate unless we encourage more savings and invest¬
ment. The economist avers inflation and growth are in¬
compatible and to achieve growth, we must avoid inflation
and deflation and encourage initiative and enterprise.

curbs money

It has grown to be

in taxes tends to enrich

New York bank economist's

labor gains

exceeding productivity rate; centralizing
by Congress, government and Federal Reserve;
enacting a combined program of aid to depressed areas,
and budget-balancing and non-political, courageous costcutting. Mr. Eccles warns that unless the Federal Reserve

to correlate annual increase in

action

holding this view of the current
the habit of the spenders
to heap scorn upon those who consider the cost
of any scheme they may bring forward—and to
ridicule the idea that this rich country need stop
to consider costs at all. Many of them believe that
the mere fact that we spend more than we take
scene.

By WILLIAM F. BUTLER*

Vice-President, The Chase Manhattan Bank, N. Y. City

own

would like the gov¬

successors

ernment to undertake. Mr.

By MARRINER S. ECCLES*

dollar, former Federal Reserve chairman proposes a pro¬
gram to solve our dilemmatic economic goals. Urges end

and do various other chores which the

New Deal and its

not

Copy

Chairman, First Security Corp., Salt Lake City, Utah

ment

grant relief to the unemployed
their due; to help many

would

Price 50 Cents

Inveighing against deficit financing and lack of agree¬
by devisive forces seeking higher wages, profits,
pensions at the expense of a stable-purchasing-power

not af¬

thinks

who

thousands

homes,

can

provide the educational facilities he be¬

lieves needed; to
in

to suppose that

this, the richest country in the world,

7, N. Y., Thursday, April 9, 1959

Jb Economic Program
To Stop Unceasing Inflation

We See It

As
-

New York

Southern

Securities

Chase Manhattan
BANK

Correspondent—Pershing A Co.

Net Active Markets Maintained

Underwriter

•

Distributor

To Dealers,

Banks and Brokers

CANADIAN

Dealer

T. L.Watson & Co.
ESTABLISHED

1832

Members
New York Stock

American

Stock

BROAD

Exchange

STREET

gotlUu&eAt COMPANY
DALLAS

Block

Inquiries

CANADIAN
"

DIRECT

Invited

•

PERTH AMBOY

MEW YORK

Expanding
Economy

' a

MONTREAL AND TORONTO

Goodbody & Co.
115 BROADWAY

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

*'m

for Californiavs

DEPARTMENT

Teletype NY 1-2270
WIRES TO

Municipal. Bonds j

BONDS & STOCKS

Principal Properties

Exchange

NEW YORK 4, N. Y.
FIRST

United

Doxcoox Securities
6rporjuion

MUNICIPAL BOND
DEPARTMENT '

•

Uattk of America
40

Exchange Place, New York 5, N. Y.

NATIONAL

IAVVN'os ASSOCIATION

1 NORTH LA SALLE ST

CHICAGO

Teletype NY 1-702-3

WHitehall 4-8161

300 Montgomery

St., San Francisco,

Calif.

•

■

(1626)

The Commercial and Financial Chronicle...

r—■

$rSj?

For Banks,

The

Brokers, Dealers only

ity of

abil¬
large and expe¬

our

contacts.

range

will

Over-the-Counter
problems.
1
,

New York Hanseatic

Associate

PHILADELPHIA
Private

ties,

and

the

Render
all

programs

are

executed.;

which

indicated

this

young

participant
industry

Pacific

INC.

brokerage service

Unlisted

Securities

for Banks and Dealers

Mercurv

exnanded

eriuons

Teletype No. NY 1-2762

research

nroeram

with

°he

floor

Sales

de-

now

has

and

soace

^Xped

;/•;..

increased

ten¬

over

1949, totaling $18.5 mil1958
(ended June
30).
An
impressive
rise
iri
earnings also
was
accomplished
fiscal

1958.

SECURITIES

ume

Prospectus

Request

in the first

reached

six

61%

were

greater than

a year

earlier. A sizable increase in order

backlogs is reported.
-

GENERAL DISTRIBUTORS
ro

IKELLER BROTHERS

c) &c</JisiLLe>& CO., INC.
ZERO COURT STREET, BOSTON 9, MASS.

(Corner of Washington St.)
Telephone Richmond 2-2530

The diversified

products

manu¬

factured

equipment

marketing position has

Co.

Bell

long established

association.

Pacific

This

supply

calls

for

minimum

of
75% of Sears'TV set requirements
the

western

states

—

the

2-4850

Teletype—NY 1-1127

our

rapidly expanding section of
country There is also a good

Dossibilitv

Sears

200

Over-the-Counter

Trading Markets

still

Direcl W ires To

Angeles—Maraehe, Dofflemrre
& Co.

Denver—Lowell, Murphy &
Company, Inc.

that

within

will'

the

near

with

apoears

threshold
bilities.

'begin

other

16 000

onlv

its

sun Divine

high-demand

ultimate

organs

were

in the United States five

the

possi-

years

sold
ago

—bj' 1958. sales had increased to
over

125,000—and sales of 282,000

organs

annually

by 1961.
Two

are

predicted

see.

Pacific; Mercury

develop-

our

branct.

offices

JAPANESE

STOCKS
For

information

current

Call

write

Yamaichi

Securities
of New

Company

York, Inc.

Affiliate of

Yamaichi Securities Co., Ltd.

Tokyo, Japan
Brokers

111

Investment

Bankers

Broadway, N.Y. B C0rtlandU-568»

the

definitely

Security

ranks

•

v
■"

Best."

■

has

than

assessed

value

especially

believe

of floor space.

price and

The

than

Company
and

current
no

times

prospective
What
are
the

brought

this

ance

the

Singer

of
of

the'

Oppenheimer

...

men

inhabit this globe, may they be
civilized or uncivilized, whether
they have ever seen an automobile
not. Singer sewing machines
are tbe world's most widely distributed factory product (more

book value of $82

share with net working

the

Building

con¬

company's

share.

glance

which
dividend

company

1863,
seem

the

and

fully

has

record
at

first

singularly attractive,

Non-Notification)

owned.

i-5 not significant thus constituting
a huge reserve.
Singer's deferred
profit
sajes

share.

before

tax

arnounts
:

coixipany,

$15

lhe

installment

nearly

/with

its

ybnng President, is making

n2vv
enei

—

dependent

Japanese

producers

®°ld

tban Singer's total output.

uninterrupted

Factoring (Notification

•

Their figure in the Balance Sheet

than

Installment Sales

About

H°n long-term debt of
a

Machinery

•

Bal¬

mil-

For

•

Sheet. Singer has the great¬
stores of any

aftei* deduction of its $32.8

$62

Inventories

book

m 1957 throughout the world
2.3 million machines, 400,000 more

capital

Talcott

Accounts Receivable

•

low

extreme

company in the U.
half
of
them
are

Foy a hundred years, this comPanY ^ products and its name are a

Talk

"(Non-Notification)

extraordinarily

servatism

household byword wherever

and have

FINANCING or
FACTORING

est amount of retail

shares of
,

value of

their

selling at;

earnings.

indicative

^earcH, abouj:
,

high-class

very

intrinsic

times

which

value

companv.

are

about

The

* * J**® re~

these

have

least three

opinion?

curiosity to do

market

conditions. After further research

Singer

under; present

I consider these shares doubly attractive—a real sleeper, a bargain.

has
350,000 sq. ft.

For...

million,

since

wires

ex-

getic strides to overcome inroads
made in the postwar period by
types of stereophonic high-fidel- than 70 million machines).,Singer c eap foreign
competition. pWhereity sound equipment.
Manufacturing Co.'s shares are as it formerly accounted xor about
Management's
foresight
w a s
sdmitted to unlisted trading Priyi-v. two-tlnrds of all sewing machines
well demonstrated in 1956, when
tcges on the American Stock Exd i
the U. S., its shqre has
Parifir
Mprrm-v
entprpH
onp
of
change. For years the company fallen to one-third, Now, however/
today's fasted growing fields - refused to give out any internaJW new low-priced "Spartan"
electronic orgalns. The company's tion except its very meager annual
ri
, VQ"?ade
.m Sl"gei ,,,•s
Thomas Organ now ranks as the rePOrt
to its stockholders (4/2 9 y
factory -will sell nere
second largest factor in the in- million
shares are outstanding, ior So9.d0—thus competing with
dustry.
Whiie: the electronic or- ™ost of them owned by the fami- Japanese machines. Furthermore,
gan industry has grown immenseHes
founders). They sell .at Lhe ca^n.PaPy Is producing in Japan
ly during the past five years, it 48^2, pajr $2.20, thus yield 4.55% lo°^ls ls important as 300 in¬
future

Lo3

under

most

Telephone HAnover

;

aroused

for

■

Looking from our office toward
uptown New York, the
Singer
Building is the first skyscraper we

specialized

electronic

Mobile, Ala.
Direct

appreciation in
current..* dividend

OPPENHEIMER

Singer Manufacturing Co.

book value of
about $1 million.
That

military and civilian markets,

NY 1-1557

Partner, Oppenheimer, Neu & Co., New York City-'
Members: New York Stock Exchange American Stock
Exchange

electronic organs
and electronic organ-stereophonic
phonograph
combinations,
and

1930

II.

"The

A strong

Established

income—this

preference'; to

receivers,

HAnover 2-0700

pace,

measure

standing-capital

shows

sales

used,
in large

Through its subsidiary,
Telemetering Corp. of America, Pacific

New Orleans, La. Birmingham, Ala

nfa nd°

owns

been gained through sales of television receivers to Sears. Roebuck

fWeweariCompcmv\

portant

televi-

W Rector St., New York «. N. Y.

ict
lead^sh^ of its young andJ>W»ly
B-52 and jet
capable management, Facitic Mer-

facts

Members New York Stock
Exchmngt
Members American Stock
Kxehmng*

organ

ing

manufacturer

Steiner, Rouse & Co

The company's electrical
equipment for the construction indus-

1960-1

and

rapid

ceptionally valuable asset.

Manufactur-

for

such

specialists in this field

by PM are all in areas
that
offer
exceptional
growth
potential. The company is an imsion

However, record sales volwas

Bought—Sold—Quoted

Pacific's complete group of skilled

months of the 1959 fiscal year .
.
and earnings for the second quar¬
ter

can

vaneing

■■■

FUND OF BOSTON

missiles
for
Redstone and Frankfort Arsenals,

period.

the recession months, per share
earnings dropped to $0.47 in fiscal

MUTUAL

research

Modern pnSJSon sonic
MSSE?'*6
Bomber
and

most

have

Louisiana Securities

tanker Program. Other contracts cury Electronics has an impressive
being fulfilled include work on record of progress-but I believe
equipment for the B-52 Hydrogen the company is just beginning its
Bomber' the F'101A and B Voo- major growth climb. For the in-

fold since
lion

Pacific

comooLnKfo^ho
con?P°nents ±or the

and

ovei

feet

?■=:*'-

summer.

effective

product development activiand
proven
merchandising

Because the com¬
pany
maintained
its
research
and development program even in

msf.
B03T0N

op-

nl-intsin CaHfS'and MSsouri
acereeatinfi^
300 000 square

in this

'Of

its

through acquisition and

effective

verv

Exchange Place, New York 5
Phone: WHitehall 3-7830

(Page 2)

tions' Major ,contracts have been viously
ne^tiated with Boein8 Airplane
Due.

steadilv

has

diversifted"

and

facilities.
40

Co.

try includes widely used portable
industry. / This electric generating plants and a
should be enough in itself to asnewly
introduced
transistorized
sure the company
vigorous growth, flasher light that exceeds
competiHowever, activities in the military tive items in
operating economy,
and
industrial
fields
also
hold
reliability and durability. An elecgreat promise.
^
trie vibrator developed by PM for
In addition to
designing, devel- compacting wet concrete is parH. Blumenthal
oping and manufacturing labora- ticularly useful in
highway contory test equipment, PM has par- struction.
Used by contractors
and
dynamic ticipated in the development and in the field, this vibrator's unique
the
electronics production of glide path receivers design enables much longer usage
used in aircraft landing opera- than with conventional types pre-

ag-l

velonment

be- expected to achieve a large share
of the expansion promised for the

man¬

ner

for

S. WEINBERG,
GROSSMAN
Members

Electronics

Blumenthal, Partner,
Henke & Co., Chicago.

Swift,

electronic

this

its

electronic

its.

basis

know-how,

ny's1

p a

gressive

SAN FRANCISCO

Security Dealers Ass'n

Mercury

—Harold

E1ectronics

extremely
bright future

the

Through

ments .in

scale

management

to Principal Cities

& CO.

Alabama &

Their Selections'

field promise

reflects

CHICAGO

•

Wires

BLUMENTHAL

ability of this;

Exchange

Teletype NY 1-40
•

■

Pacific

particular security.
to

Forum Participants and

Singer Manufacturing Co.—W. H.

the;
outstanding;

120 Broadway, New York 5
BOSTON

intended

not

are

and

com

WOrth 4-2300

for favoring

Mercury

Member

Stock

American

as an

Pacific

Corporation
1920

■*.>

organ1 P Oppenheimer,
Partner, Oppenespecially favorable,
heimer, Neu & Co., New York
sales
volume.
Uptrending
sales
City. (Page 2)
; ^
:
r '
are reported for the Thomas
Or¬
gan incorporating a Hi-Fi sterePacific Mercury Electronics
ophonic phonograph system — and Mercury designs
.equipment for
There are numerous reasons for an impressive new Thomas Organ transmission,
reception and remy selection of "The Security I employing transistors, which was cording of data from missiles and
Like Best," but one stands out introduced to the trade last year, aircraft in flight. This equipment
prominently—management. The bas
reached initial production is currently being used in military
stages and assembly lines are ex- applications and in
strong growth
rocketry projpected
to be operating on a full ects. With space age
pattern
of
activity ad-:'

your

Established

be, nor
offer to sell the securities discussed.)

Partner, Swift, Henke & Co.
Chicago, 111.
Members Midwest Stock Exchange

you

pay

be regarded,

HAROLD

to take
advantage of our nation¬
wide private wire service
and prompt service in
It

they

are

extremely

cover

broad

reasons

(The articles contained in this forum

rienced trading department
to

Security I Like Best

participate and give their

We take pride in the

\ ■»' "*■

V.'jV »

This Week's.

A contmnons forum in which, each week, a different
group of experts
In the investment and advisory field from all sections of the
country

Try "HANSEATIC"

•"

Thursday, April 9,1959

Singer's
manufacture of industrial sewing

"iacnines, formerly in Bridgeport,

9.?ni1*,uls Pov^ bemg transferred to
clYdebank> Scotland and KarlsContinued

page

James Talcott, Inc

m
NEW
221

YORK

FOURTH AYE., HEW YORK 3, N.Y,

/" ORegon 7-3000
CHICAGO

•

DETROIT

•

BOSTOfi

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
20-Year Performance of1
35 Industrial Stocks
FOLDER

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4,

N. Y.

Volume 189

Number 5836

The Commercial and Financial Chronicle

...

(1627)

Rule 133 oi the SEC

1 N.d'E X

By MANUEL F. COHEN*

Articles and News

Chief Counsel, Division
Securities

and

Exchange

Commission

thinking that has

—William

and

Mr. Cohen:

other

similar

transactions

definition of the

term

within

come

the

Rule

from

tor

the

"sale," and certainly since 1951 the

applica-

[

"19331
ihsm;

the

1933

(approved

orieinallv

was
was

.When

Trade

the

27,

assigned
assigned

originally

Federal

May

to
to

Commission,

question

first

arose

whether the submission 'to stockholders

plan

for

merger

,11
f
subject

urn
was

consolidation

adoption

—C. Melvin McCuen

determ iried ';n ot to" obj ect to

thL otliei consolidation.

adoption of Form E-l, the regis-

was

sion

stated

plan

"to

is
of

frbm

dissent

plan

failing to dissent

within

or withdraw
time
will
be

limited

bound, so far as he personally is
concerned/to accept such securities,..."
S . v7
•
7
7" "Reorganization" was in turn
„

defined to include

solidation

and

other

merger, contransactions

of the character described in Rule

—M. K.

:",

c^hd-,tie

other

•,

;
decisions

the

other person,

securities

plan

or a

American

■
,

PERMACHEM CORP.

Here and

BASIC ATOMICS
12

SPORTS

May Be at Hand for Cotton

Home, Jr

ARENA, INC.

,___

FOOD FAIR

PROPERTIES

—

—Sen. John L. McClellan___-_.__:_,

MIDWEST

—_i—1__ 18

INSTRUMENTS
■; /'

Funston Issues Warning
-

Activities

First National

Structure Issued——

NYSE

;

J.F. Reilly & Co., Inc.

Proxy Solicitations and Investing

Customers

Firms.—

City Bank Questions Value of Equities

Members Salt Lake City

Stock Exch.

Exchange PI., Jersey City '
DIgby 4-4970
*
i

71 Hedge Against Inflation

Teletype: JCY 1160
Direct

wires

sets of such corporation to another
person in consideration of the isof

Dept.

STREET, NEW YORK

Telephone: WHitehall 4-6551

McCormick—

Analysis of Nation's Bank

Salt

Regular Features

Lake

Denver &

City

such
As

or agree-

ment of a statutory merger or
consolidation, provided the vote

See It

(Editorial).

Cover

Pantasote

Bank and Insurance

of a required favorable majority"
would operate to authorize the

Business

transaction and bind all stockholders except for appraisal rights

Man's

Stocks

___

Bookshelf

___

Dealer-Broker Investment

Rccommendations__-___--__t-

,i;., %

Basic Atomies

Ling Electronies

___

.U'i.i",

Bar

Coming Events in the Investment Field

;

£lsser^.ers*
These, provisions
continued in effect until 1947 when
the Commission announced the
Association had submitted to the repeal ?f Form E-l.* Despite reCommission a report which rec- Pea* °!
£
?rni?>
view exommended complete revision of pressed m the Note was continued
the

Deming___

Remedying Unstable Areas in the Labor-Management Field

About two weeks earlier, on
about May 1, 1934, a special

Committee

I'^-i-fRbbCrl R. Dockson—

, ,

ted to a vote of such stockholders
a proposal for the transfer of as-

suance

prior

133.

'or

WALL

Economic Trends Affecting Real Estate's
Prospects

con- .!

corpo-

tory ; provisions
or
provisions
contained in the certificate of
incorporation, there is submit-*

with-

agreement

for reorganization is given on such
terms that a person so assenting

Abroad?—Edward

A Brighter Economic Outlook

The basis for these
articulated on Sept. 19, 1935,
in an amendment of Form E-l
which indicated that the Commission deemed "no sales to stockholders; of a corporation to be
involved when pursuant to statu-

assent

draw

"sale"

submission

the

agreement for reorganiwhen an opportunity

?zation

that

m^piv §nd

.ofto1hp)W»

And, in Release No. 167, announcing, as of May 16. 1934, the

^"involved

job of administering the. Act, had \

tive.

obsoletes

Has Inflation Been Brought Under Control

and Exchange commission, which
by this time had succeeded to the

by the horns
your

thl
the rate combinations without

form for securities issued,
sold, or modified in a reorganization, the Federal Trade Commis-

Cobleigh—______

for cash!

J—

Climate for Growth—Frederick L.

of the'. changes

registration provisions of the Act,
it was answered in the aftirma-

bull

the

bring

7
Increasing Relative Wealth and Purchasing Power

earlier recommended 2 However, ,
in November, 1934, the Securities.7:

summation of at least two

tration

without

SEC—Manuel F. Cohen——

rv'"
■

non-underwriter-distributor, and allow distribuby persons who are not underwriters';

Administration of the Securities

•

133 of the

Impending Summit Meeting and Question of U.S.S.R.
Trade—Hon. Herbert Hoover

but subject major redistributions to registration. *

Act

Take

Cover

The-

tions free of registration

;

Butler-

Black Gold Rush for 49ers—Ira U.

•

tion; and (3) recommends SEC delineate underwriter-distribu-v■
.

Obsolete Securities

broad

very

"no-sale" doctrine of "Rule 133" contained limited

Cover

and

(1) distinguishes between "no-sale"
theory and "no-sale" rule and finds their implications were not v 7
fully appreciated or were glossed over; (2) observes mergers
!"

Eccles_

Accelerating the Pace of Advance in Our Economy

proposal to amend "Rule 133" under the 1933 SEC Act,
and the genesis and history of the doctrine that is now

.■

gone»

into

Page

An Economic Program to Stop Unceasing Inflation

—Marriner

SECs chief counsel reviews the latest

"Rule 133."

of Corporation Finance

Pacific
8

—_

■

Einzig: "London Market's Entry Into Forward

Dealing

Gold"

Uranium

Moore A
—_

Handiey

Hardware

the Act. Certain amendments

offered, pending

were

thoroughgoing
Revision, including a suggestion to
"broaden this exemption [Section
-4(3) (now Section 3(a)(9)] to ina

elude the issuance of securities to

holders of securities of all persons
which are parties to a reorganization

(including

a merger or

con-

as a

From Washington Ahead of the News—Carlisle

patter of administrative in-

terpretation until
>vas decided that
industry since the
was in fact being

1951 when it
in fairness to/■'
interpretation
followed, , the

protection afforded by

rule

Mutual

was

transactions would

Similar

also

was

Justified. Before dealing with cer-,
tain events leading to this decisioil> n is important to understand

amendment

submitted

the

in. 1935

exempt.

lem.

for

statute

do
of
bn

lire

not

the

necessarily
staff

from

sociation

York

talk

the

Section

the views
colleagues
Commission.
They
of

the

he made
Bar

his

before

the

Banking,

Law,

New

the

As¬

City of New
Corporation

and, Business Law and Section
ministrative

his and

represent

Commission

the

are

York

Ad¬

ments

<1934)

the
p.

Securities

Act

ments

(1935)
*

19,

1933

the

Our

Special

Act

14,

Act

of
Amend¬

Release

1947).
Stanford

No.
'

Junior

—

—1

_________

Securities

The Market

;

The

Security I Like Best—

The

State of Trade and Industry

'3211.

BROAD

Washington

and

York

Chicago

King Oil of "

Delaware

___

_______

Alaska

___

—

Stock

Exchange

TELETYPE NY 1-5
Chicago

Schenectady

...

Oil & Mineral

Weekly

Glens Falls
Worcester

Company

;
Reentered

CHRONICLE

second-class matter Febru¬

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

ary

Reg. U. S. Patent

DANA

Office

COMPANY, Publishers

Park Place, New York 7,

N. Y.

GEORGE

WILLIAM

MORRISSEY,

DANA

Thursday,

SEIBERT,

April 9,

Subscription

Rates

Subscriptions
Possessions,

Editor

President

United

Territories

INCORPORATED

Pan-American

Union,

States,

and

$65.00

Members

per

Dominion

Other

year,

of
Canada,
$68.00
per
Countries, $72.00 per year.

Other

Publications

Teletype NY 1-4040 & 4041

Other

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

Offices:

Dl.

Bank and Quotation Record — Monthly
$45.00 per year. (Foreign Postage extra.
Note—On

the

rate

foreign

account of

the fluctuations

New York funds.

Direct

Wire to

exchange,
remittances
for
subscriptions and advertisements

must be made In

BROADWAY, NEW YORK 6
WHitehall 3-3960

1959

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

yean

Every

Chicago

W" V. FRANKEL & CO.

REctor 2-9570 to 9576

ST., NEW YORK 4, N. V.

_„

___

You

Twice

FINANCIAL

PREFERRED STOCKS

Boston/

Nashville

Los Angeles

(1943).

TELEPHONE HAnover 24300
Albany

Dallas

Cleveland

119

University v."

Spencer Trask & Co.
:

Philadelphia

—

and You—By Wallace Streete.

(Sept.*

—_

Salesman's Corner._—__i.—

The COMMERCIAL and

New

___

Security Offerings._____

Prospective

WILLIAM B.

Members

________

Supply Co., 46 F. Supp. 389
(N. D. Cal., 1942), rev'd., 134 F. 2d 689(C. A. 9, 1943), cert. den., 320 U.^ S.

1
1-

___

—

inc.

Exchange Place, N. Y.

Direct Wires to
San Francisco

________

Securities Now in Registration

Published

have specialized in

Teletype NY 1-1825 & 1-4844

—

'
Act

HA 2-9000

1933

Release No. 493

Mackie,

National

773

For many years we

Report

Reporter's

—_

—

Public Utility Securities.

Committee

1935).

4 Securities

(April

May___

Governments

___

Singer, Bean

the

on page

Securities

___

Bar Association

the
p.

.3 Securities

5 Leland

Report

the American

City,

'1 Report of the
Special Committee of
the American Bar Association on Amend¬

briefs in

Continued
■"

*The remarks of Mr. Cohen

■■■

•

4(3) had become Section 3(a)(9)

Wilfred

Railroad Securities

Commission's

Leland Stanford? case in 1941 and

Section

after

Our Reporter

;

The

was

—_____

Observations—^A.

recom-

recommendation

___

News About Banks and Bankers.__—

*he distinction which must be
mended that securities issued in drawn between the so-called -nosuch
exempt transactions
be sale'
theory and what, is popu- .treated as exempt securities so- lai'ly J®*6**'®4!'.t° as the 'no-sale that it would bo clear that offers rule- rhe distinction is vital to an
pf the securities in subsequent understanding of the entire prob-1
solidation)."!

Funds

Bargeron,

Indications of Current Business Activity.——

PHILADELPHIA

The Commercial and Financial Chronicle

(1628)

growth

gain potential,
has stopped

the
"going

company

places."

Observations

•

While

•

advice

such

buying
extremely

By A. WILFRED MAY
AND

THE NEWS

market's

The

behavior

during
its sharp
ups and downs, demonstrates
again how it is governed by crowd
psychology.
the

past fortnight with

this

see

investor's
called

the.

again in

so-

news

follow the

ing falling
markets, Wall
selects

unfavor¬

able

A- Wilfred May

news

items; while
during rising prices it forgets all
about these depressing items; and
concentrates

able

factors

"Never

has

before

book

Closing the easy-to-read, en¬
joyable, and stimulating volume

whatever

favor¬

around.

Thus,

are

during the market falls of the
early part of last week, the Street

fortune!" Or, from the
author, "It is designed to serve
as your own personal road map to
unusual progress, profits and pros¬
perity. Good luck, and may all your
stocks be IBM's"; and "You can
handsomely increase what money
you have, and what money you're
going to have.
This book will
show
you
how."
While these
promises are impossible of ful¬
fillment in our real world, the
you

little

D. B.

McElroy Joins
Clark, Dodge & Co.

does

performing

dealers

and

York

Stock

Exchange,

the New

members of

as a

Mr.

McElroy,

after

gradu¬

ating

through
service to

to the

investors.

denced for

This

some

rank

has

and

been

time in

the

file

evi¬
case

of
corporate
reporting — both
through annual company reports
and periodic releases
through the
press.
What a far cry from the

the next ten years

them.

and out trading
In the pursuit
capital gains, stub¬

is for the birds!")
of growth and
born

insistancc

eschewed

income

dooming
one
to
pamphlets of former times meager capital gains.
are
the
present-day
beautiful
Considerable space is devoted to
booklets, replete with easy-to- recommendation of
specific fac¬
take format along with charts and
tors to use in investing in the
color glamorizing for the com¬
growth area. The basic criterion
placent stockholder the data con¬
of growth is offered that the earn¬
cerning his company's operations.
ings' increase shall be double the
This
pressure
toward
spoon¬ growth rate of the economy as a
feeding information has been de¬ whole. And substantial weight is
cisively extended to the field of given to the inflation factor as
as

drab

books

emphasis

investment,
on

with

the

reading of the
Particularly wel¬

easy

how-to theme.

supporting
issues.

the need for growth
requirements listed

Other

for growth stocks are: they should
then
to
the
speculative be in companies that are in dy¬
public (as it is also to the brain¬ namic
industries, effectively man¬
washed book reviewer) will be a
aged, strong rtn research, have
new Volume by the maestro in the
sales superiority, with good prod¬
art
of
clothing basic investing uct
reputation, high earners (12%
principles with delicious wit, en¬ after taxes), plower-backs of earn¬
chanting breeziness, and crystal ings, and stock-minded.
clarity — all in ten-cent words
Likewise rules are offered for
come

(HOW TO GET RICH BUYING
STOCKS. By Ira U. Cobleigh. 120

Joins

making selling decisions, as when
a
company has "maximized" the

Martin

Amott, Baker
H.

Smith

has

Complete Investment Service
lin/coii/iciU

UMOmWRITCItS
y

« BROKERS

4'" *

DIALERS

•

Amott, Baker & Co., Incorporated,
150 Broadway,
New York City,
members of the New York Stock

Exchange,

as a
with

sentative

York

office.

previous
and

registered
the

Mr.

Smith

investment

will

serve

repre¬

firm's

New

has

had

experience

customers

the

Staten Island-New Jersey area.

New Sutro Office

ijc/

Wall

Street"

one

in the garment

area

of the ultra-modern invest¬

ment centers of Sutro Bros. &
members

Co.,

the New York Stock

Exchange and other principal Ex¬
changes.
The
on

the street level at 1350 Broad¬

way.

Sutro branch is located

new

It is under the management

Jack

Harris.

All modern

con¬

veniences have been installed in¬

cluding

direct wire to the floor

of the New York Stock Exchange
and a speedy quotation system.

Philips, Rosen & Appel,
bers

of the

Mr.

New York

February total

Strauss

predicted

Mr.

V-

Co.

Private leased radiotelegraph

the

Rosen

Richter,
be formed

FRANCISCO

•

LOS

ANGELES

39 Offices

•

NEW

YORK

Serving investors

•

CHICAGO

statement

New

'''"■

■■

"v\''■¥./:

retail

■

finances.
sales

Housing starts remained

were

'maintained

was/

who

high level

December's peak
Automobile sales continued to run well above last
year's
levels.
Support for retail buying continued to come
not only from increased consumer credit
but from rising personal
income as well.
v
rate.

depressed

Business

•

the

fourth

reported

spending

quarter

planning

plant

of last

and

equipment

year.

further

rise

slightly

rose

expenditures for both ; the
quarters, according to the Commerce-SEC survey
spending intentions.
The turn-around in capital out¬
lays, the Reserve Bank noted, has come a little earlier than in
the recovery of 1954-55 but
later than in 1949-50.
of capital

In another

article, "The Common Market and European Eco¬
Integration," the "Monthly Review" termed the formation
European Economic Community one of the most farreaching economic undertakings of all time.
The six nationsnomic

the

Belgium,

France/ West

Netherlands—have
of

program

the

growth

use

economic

Germany,

committeed

Italy,

Luxembourg,

themselves

integration

and

they expect will speed
standards by leading to a more efficient

living

resources.

The extent to which these
gains will
Bank

materialize, the Reserve

notes, may not depend as much as many have
thought on
economies of large-scale
production.
Most of the countries
already have markets large enough to
reap the benefits of mass
production techniques. The success of
economic
new

unification, how¬

will obviously depend

ever,

the extent

to which

in internal
competition follows the
accessible to member

Philips,

European countries.
United
tures may

Free Trade Area

covering all Western

•

••

•

■

•

-■

States exports of cars, chemicals and other
manufac¬

initially feel the main

effect of the new customs union.
many manufacturers are increasing their investments in
the Common Market
countries to avoid those difficulties.
On the

Already

Other hand, widened markets flowing from
nomic growth should lead to new
export

Europe's faster

With

advent

nonresident

convertibility in

payments basis for discrimination
wiped out.

Europe,

against dollar

the

acquire

the

balance

goods has been

Another

"Monthly Review" article, "Mortgage Financing in
Period," examines the swings in home
building since
striking contrast to most other industries, residential
construction has usually begun to
surge upward during periods of

the Postwar

economic recession and then has moved

sideways

Continued

declined
on

Far

Banks, Brokers and Dealers

BEECH AM GROUP LTD. A.D.R.*
j

SIEMENS & HALSKE A.D.R.
ELLIOTT AUTOMATION LTD.
Bait {tht—Sold—

Review
J

current

avdilahle

Quoted

developments
request

Alfred L. Vanden Broeck & Co.
Members:

New

York

Stock

Tel:

Exchange

Liberty St., New York 5

BE 3-888Q
Private

Teletype NY 1-4686
Wire

System

Canada

once

page

will

•exchange membership, Richard E.
Richter and Stanley Lederman.

eco¬

opportunities/ This, in
action taken by the Common Market
countries to fulfill their
repeatedly stressed desire to foster still
greater freedom of trade within the entire world.
turn, will greatly depend

Stock

Co.

increase

enlargement of markets freely
country industries. Although economic and
political considerations have led the other
European countries not
to join the Common
Market, efforts toward achieving a broader
grouping continue active despite the breakdown late in 1958 of

April 9th to deal

will

the

comprehensive

that

importantly, businessmen

first and second

Exchange. Partners will be James
Richter

■"%

survey

consumer

member of the New York Stock

the

Steel output rose to a new
monthly
automobile production was strong.
Weekly data on
freight carloadings and electric power production also
point to
rising industrial output. Business inventories have been
expand¬
ing. > Consumer prices have been
steady, but sensitive raw
material prices rose in March.

of April

York

Lederman
as

that

Reserve Bank of New York.

in securities. The new firm will be
a

SAN

prepared

record while

Form Richter, Lederman

circuit to Honolulu

Economic activity rose at* a somewhat more
rapid pace in
March, according to the April "Monthly Review" of the Federal

New York Stock

un¬

4,400,000

:^r-"K--

'■

partner in
McManhon, Lichtenfeld & Co.

Members

predicted that the new report will also show what
actually the best job improvement figures between
February

■

Exchange • Pacific Coast Stock Exchange
Midwest Stock Exchange * American Stock
Exchange
Honolulu Stock Exchange • Chicago Board of
Trade
and other leading
commodity exchanges

March

4,749,000, Commerce Secretary,

was

during

Stock Ex¬
as

Exchange, Alvin S. Rosen, and
Barry Appel, General Partners,

ker.

Dean Witter

350,000

Strauss

Mr. Philips has recently been
active as an individual floor bro¬

that

announce

and March in years."-v.;.-:

ner.

about

Department

mem¬

and Isaiah Tarshish Limited Part¬
.

Index

March figures would show "a more than
seasonal drop in un¬
employment and a substantial rise in employment" and further

the war.

17th with offices at 55 Liberty St.
member

Labor

Partners will be James J.

U. i

cut

was

The

change, will be formed

.•••••/

•

*hv,

Lewis

and

negotiations to establish

The latest addition to the "Little

; •«/

DISTRIBUTORS

Production

joined

To Be Formed

workers.

while

Philips, Rosen & Appel
■j

Commerce

employment

from

Princeton

Select promising stocks and hang
on

Price

Auto

Business Failures

The article noted that consumers apparently entered 1959
feeling significantly better about their own prospects than in
early 1958, according to the Federal Reserve Board's annual

the

500%

Industry

Food

Univ ersity,
lay investor in transmitting a
class of 1930,
concentrated on the unfavorable
generous helping of valuable facts,
bits as the threatening interna¬
spent five
and
stimuli
to
his
speculative
tional situation, the looming steel
years with
imagination.
The
National
strike, high unemployment and
After giving us his basic prem¬
the like; while on the other hand,
City Bank of
ise: "there are five ways of getting
with the market bouncing back,
New
York.
'in the money' without stealing it:
this was forgotten and replaced
He joined J. P.
inherit it, marry it, earn it, win,
David B. McElroy
by
favorable
news
items
like
Morgan
and
stepped-up auto production, big it, or grow it," Dr. Cobleigh con¬ Company in
centrates his book on the growth
increases in home-building, and
1935 where he remained continu¬
aspects.
And, quite understand¬
higher freight loadings.
ously, being appointed a Viceably
then,
his
portfolio
advice
is
President
in 1948.
S:
<:
'
directed to urging liberal inclu¬
Mr. McElroy is a director of the
sion of growth stocks, with happy
SPOON-FEEDING THE
North British and Mercantile In¬
emphasis on long-term holding.
surance Company and Mercantile
SPECULATOR
("The stock you select for current Insurance
Company.
More and more is sugar-coating purchase must have within it the
required in feeding the financial potential capacity to rise at least
facts of life

Trade

Commodity Price Index

general

partner.

come

real

David B. McElroy has joined
Clark, Dodge & Co.,
61
Wall
Street, New York City, securities

Output

Retail

J
The

"are

volume

and

brace a fallacy too often followed
by the investing community.

Production

Electric

State of Trade

of course should
integral element in a deci¬

parlay modest savings into minks,
Mercedes, mansions and Mediter¬ is a generous
tip, a list of 60
cruises by unfolding the
"golden companies in the surging
proven
methods
of
the
most sixties."
opulent and successful investors."

cost

changes. Dur¬

Street

contained in the opus's blurb and
introduction?
"... It tells you
what you should know and do to

":V"y

Carloadings

acquire or liquidate. No
stock. is
actually cheap at any
price or not worth some price. To
lose sight of this truism is to em¬

following

the

sion

market. Not to read this book may

different price

the

blandishments

McKay.

practically and logically outlined
the' road to riches in the stock

by fitting the
to

$2.50).
Who, particularly if troubled with
investing problems, can resist such

moves

outside

York.

price, which

ranean

expla¬

nation of t h
market

New

pp.

Steel

The

and selling
helpful, it

does harbor the material omission

INVESTOR PSYCHOLOGY

Thursday, April 9, 1959

...

Volume 189

Number 5836

The Commercial and Financial Chronicle

...

(1629)

Black Gold Rush for 49en
By

DR.

Enterprise Economist and Author of "How to Get Rich Buying Stocks.'

Muskeg musings

prospecting and potentials for Alaskan oil.

generally tired

in 1958, the search for new
of crude, over many re¬

year

sources

sections

mote

continues

earth,

un¬

abated. This

natural

and

normal

thing

the

the
—

and continued

exploration,
for oil—but it

has

been

given

new-

tu s :

deep

test well there sometime this

sum¬

in
Ira

exist¬

certain

Cobleigh

ing oil fields.
unilateral

The

and

retroactive

upping of taxes on oil companies
in
Venezuela, the political un¬
certainties surrounding explora¬
tion

oil

for

Sahara,

the

the
50-50
formula for producing oil royal¬
ties in Araby, and the Muscovite
menace
to petroleum-rich camel
break-through

pastures of Iraq—all these things
add a new drive to oil-seeking,
however
costly,
in
our
own
Hemisphere and especially under
our own flag.
So it is that 1959 is witnessing
exciting oil rush in Alaska, all

the

since Alaska is no
territory but our 49th

longer

eager

State—a double Texas in size. But

drilling for oil must be predicated

something

than

zeal

substantial

extensive

this

South

has two producing

now

Texans, old "pros" in petroleum
probing, converging on an Arctic

acres

Another

Federal

land

million

and

Sunray and Texaco.
What
are
the
most.

hopeful
That ob¬
viously is a key question since
there are 586,400 square miles in
drilling

spots

today?

Alaska to choose from. The U. S.

however
in

climate

less

portation and
are

seemed

southerly

Alaska

time,

first commercial

may

oil field

was

Katalla

(in the Gulf of Alaska
Province) in 1903. This
field produced about 154,000 bar¬

Tertiary
of

crude

shallow

from

wells, but the project was aban¬
doned in 1933, a year in which you
may
recall,: both r capitals and
optimism were in scarce supply.
The next major testing for oil
was conducted by the U. S. Navy.
1953 the Navy

Between 1944 and

spent

million in ex¬
geophysical and geological

around $48

tensive

studies in the Arctic foothills—the

northernmost

hostile

section

Alaska.

access

easily

braces

band

the Gubik

and

gas

estimated 295 billion

East,

Alaska

across

recently,

July,

1957,

Richfield Oil Corp. brought in its
No. 1 Swanson River Unit in the

thing

Oil

number of

the

oil

existence

J. A. Clark lo Be

reminiscent

boom

Jos. Walker Partner
On

the- Jr.,

ship

(Special to The Financial Chronicle)

about
oil.
Fairbanks could use 10,000 barrels
a
day and Anchorage 30,000, in
refined
products.
Far
Eastern

April 16, J. Averell Clark,
will be admitted to- partner¬
in Joseph Walker & Sons,
Broadway, New York City,

note

HOLLYWOOD, Calif.
F.

Smith

Clements

now

BROOKLYN, N. Y. —Personal

James Income Programming Service Inc.

—

with

has

Patrick

been

formed

with

Hollywood Boulevard.

Coast

for

INCORPORATED

Chairman

NEW YORK

1)ATT SOX

11.

President

'V.-..j ■'

Statement of Condition March 31, 1953
ARTELUll M. ANDERSON

some

)

ASSETS

BEC11TEL

STEPHEN 1).

Cook Inlet to beyond

President

Bechtel Corporation

Cash

Sustina in the West. (Reference

to
map is suggested).Within this
broad zone Standard of California,

Richfield,
Union
of
California,
Ohio Oil, Alaska Oil and Mineral
Halbouty Alaska Oil are active in
Kenai; and there's an increasing
interest in the Sustina area; vin
the area just north of the Gulf of
Alaska; and in the Matanuska
Valley.
More recently

section known
pronounce it)

(to those who can
the
Yukon^Koyukuk.; Creta¬

Basin

tion. This
West

East

has

area

Fairbanks

the

300 miles

some

and

tidewater

zones

dear to the hearts

Alaska

contingent.
Oil
Oil

Benedum is
Mecom

claim

holder;

with

PAUL
*♦-v

•

State and

municipal bonds and notes....

223,708,134

68,317,685

....

Loans and bills

Stale Street Investment Corpai-ation

BERNARD

Stock

Morgan & Cie. Incorporated

CIIESTON

CHARLES S.

purchased.

Accrued interest, accounts

CARTER

Chairman

345,767,773

....

receivable, etc.

of the Federal Reserve Bank

Investments in

....

.4,860,511

...

2,100,000

Morgan Grenfell

Jjimited, Morgan

Co. 1
Cie. Incorporated,

and 15 Broad Street

Corporation.%

JOHN L.COLLYER

Chairman

Banking house

Liability of customers on letters
of credit and acceptances

....

CRAGIN

STUART W.

5,935,000

-3,000,000

■...

The B. F. Goodrich Company
\

8,753,191

;

CABOT

Chairman

23,042,244

$915,236,372

Senior Vice'President

RICHARD R. DEUPREE
Ciutirman

The Procter & Gamble Company

DICKEY

CHARLES D.
on

Trust Matters

GILBERT

CARL J.

liabilities

$ 28,198,656
697,465,162

All other

Official checks outstanding...................

Accounts

LONGS TllEET HINT ON
Senior Vice-President

8,862,518

payable, reserve for taxes, etc

Acceptances outstanding and letters

of
23,042,244

credit issued

N. D. JAY

loca¬

f 68,457,961
$794,121,779

Chairman

The Gillette Company

Paul

tion and Pan-Alaska Corporation,

jr.

Deposits: U.S. Government.....

Chairman

Committee

represented; the John

interests will be

$229,751,834

banks,

Other bonds, and securities

Halbouty-

identified

hand and due from

miles

Norton

Bay. The lure here is possible rich
oil in two

Foundry Company

atten¬

attracted

President

American Machine C'

011

United States Government securities, f...

B Ull GESS

CAR PER L.

ceous

P. MORGAN
& CO.

J.
ALEXANDER

HENRY C.

Capital—350,000 shares

35,000,000

Surplus

35,000,000

Director

Morgan & Cie. Incorporated
•
.

DEVEREUX

JOSEPHS

19,209,831

Undivided profits....»

$915,236,372

Chairman

New York Life Insurance Company

THOMAS S. LAMONT
Chairman, Executive Committee

Clark, Dodge & Co.
Established
61 WALL

184s

■.

'(■•

C. LEFFING WELL

pleasure in announcing that

public monies as required by law,

and for other purposes.

Member Federal Reserve System

Continental Oil Company

JOHN M.

We take

secure

F. McCOLLUM
President

STREET, NEW YORK

securities carried at $16,450,353 in
pledged to qualify for fiduciary powers, to

United Stales Government
the above statement are

Member Federal

Deposit Insurance Corporation

MEYER, JR.

Senior Vice-President

JUNIUS S. MORGAN

MORGAN $

David b. Mcelroy

ALFRED P. SLOAN, JR.
Honorary Chairman
General Motors Corporation

has this

day become

April 2,1059'

member of

our

firm

Clark, Dodge & Co.

CIE. INCORPORATED

1b, Place Yendome, Paris, France

GEORGE WHITNEY
HENRY S.

WIN GATE

President, The International
Nickel Company of Canada,

Limited

offices

6715 .189 Montague Street to engage in
a securities business.

Associates,

DIRECTORS

Texota

c.f. of gas.

Another

running along the

Texas

Alaska is the ready market for

Two

arranged.

oil

major oil
fields; and the drillings of 1959
will no doubt spotlight some of
the richest areas and may lead to
gest

tracked vehicles
equipment for sur¬

to the terrain

reserves, the Umiat field with an
estimated 200 million barrels of

The Navy drilled 36 test wells and
discovered two fields with major

field with

there;

studies of geologic structures sug¬

old days

trans¬

and

geologists, the Lower Creataceous at around 2,000 feet depth,
and the Mississippian at between
6,000 and 7,000 feet. This Koyukuk
terrain
has
attracted
a
lively

reserves;

fascination.

considerable

known to exist

where the

immediate promise. The first em¬

oil fields. Oil seepages

rels

and

standard

centered

areas

What

be major
here were
first reported by the Russians over
sf hundred years ago, in 1853. The
in

are

in a bulletin
listed 23 pos¬
sible
petroleum
provinces
in
Alaska. The greatest activity now

optimism
expensive

to believe that

reason

sections;

out,

are

Asso¬

course,

geological survey,
published in 1957,

700 miles from Yakatat Bay on the

turn

love

Alaskan

Helicopters

Dealers

Investment

ciation of Canada will hold its
if Alaska grows to be
another Texas, the local demand annual convention at the Banff
Springs Hotel, Alberta, Canada,
may be kingsized.
This whole Alaskan project has June 8-11.
of

roast caribou.

There

The

Francisco. And

San

Southern

Certain

they

because

not

Seattle

acres

the Arctic Circle? It is this. There

excellent

it's

To Meet in June

could effec¬

from Alaska

tively compete with Canadian Oil

in East Texas. All this,
veying and exploration. Along the
120
southerly coast the thermometer however, is in the realm of eager
members of'the New York Stock
conjecture.
If the promise is per¬
seldom goes below zero; but in¬
formed then pipelines from the Exchange.-.,.;
under jurisdiction of Department land at 50
degrees or 60 degrees
of Interior may shortly be put up below there's little romance and fields,
tidewater
terminals and
for leasing; and Senator Bartlett much austerity in the oil business. refinery capacity in the area will
be the next steps. It's quite excit¬
of Alaska now has a bill in Con¬
V. Drilling a hole in Alaska will
ing and location
of significant
gress to return tbe Navy reserves
now
cost almost three times as
oil - may
well' lead
to
(aforementioned)
to public do¬ much as a well in Texas. As more Arctic
animated
share
main. Anchorage already the larg¬
speculation not
rigs and equipment come into the
Capton Michael Paul will be¬
only
among
the
est
big
majors
but
city
in
Alaska
has
now
area, however, costs will go down.
come
Administrative Vice-Presi¬
among some of the small inde¬
become quite definitely the
oil There
is
some
satisfaction
in
dent of A. M. Kidder & Co., Inc.,
and financial capitol of the State.
pendents if they get there "fustknowing however, that if you do
1 Wall Street,
New York City,
est with the mostest."
So keep
Some 18 oil companies now have
strike rich oil, no greedy shiek, or
members of the New York Stock
offices
your eyes on Alaska. Its next gold
in
Anchorage
including Pro-Communist
putsch can snatch
Exchange, on April 16.
strike may be black.
many majors—Standard of Cali¬ it
away from you. It's better to
fornia, Richfield,, Humble, Supe¬ own oil on U. S.
soil, even thoyjgh
rior, Shell, Amerada, Continental, it costs a little more to get it.
With Patrick Clements
Personal Income Program
million

Alaska.

exploration both above and below
is

tankers

When you see such a cluster

mer.

Inv. Dealers of Canada

and

a
few problems in
exploration.
During
wells
in
this
area
delivering winter months there are only 4 or
around 1400 bbls. per day. The oil 5 hours of
daylight; and much of
is trucked to Seward.
\
the marsh and muskeg terraii) can
This Kenai discovery was the
only beeffectively worked in
big one. It started the really big winter when the ground is frozen.

Richfield

broad areas seem to offer the most

enthusiasm.

and

then is the real basis for

(East of Cook
of Anchorage).

are accessible by tanker;
assuming > reasonable prox¬
imity
of
wells
to
the
Coast,

markets

Of *.N.KiMerCo.

formidable.';
debits

and

has

Pail lo Be Officer

because

Inlet

Peninsula

push which has brought some 20
companies into the state, and re¬
sulted in the leasing of over 40

the
ubiquitous
dustry

Kenai

incorporation,
a

area,

oil had

While

Texas

Basin and expects to drill

COBLEIGIir

IRA

new

lined up some 138,000 acres in the

MORGAN GRENFELL

tS, Great Winchester Street,

$ CO. LIMITED

London E. G. 2, England

(1630)

The Commercial and Financial
Chronicle

The

Impending Summit Meeting
And Question of U.S.S.R. Trade

ideas

New

its

possibilities

the

be included

our

and

Increasing Relative Wealth

our

such

there

has

likely

ever

San

war.

the

probable. Mr. Hoover catalogues the lessons
from

support behind
The greatest problem before us
some road to lessen the

is to find

repeated tensions created by the
Communists over the world. The
Communist
ultimatum
the

free

people

witnessed
in

ket is Western

President.

our

death

this

levels.

agreements.

able.

The

number

between

standards vital

these

all

gers

dreadful

the American

Herbert

him

great
now

world crisis.
over

forty

gaged

effort

been

find

relationship

most

years

the Western World has
workable

en¬

some

nists.
In

these

efforts

has

•

had

periences and by
learned
whole

the

Communist

interest

imposed

there has been

peace,

upon me some awareness

and

which

upon

Discusses

The

the

must

Lessons

first

that

the

determined

principles
stand

and

these

fast.

realization of the utterly different
concepts of international relations
between the Communists and our¬
selves. ; We are a nation whose

They

unwavering.

Berlin

The
must

agree¬
be up¬

only be modified

can

life

into

Our

third

people

the

world

war.

not

are

frightened

threats
upon us

from the Kremlin. We

selves.

defend

can

are

our¬

munist Russia.

scopic amount of trade is
less

face

these

perils

maintain such military strength as
will deter an attack. And we must
continue the development of sci¬
,

entific

research

will

World in

keep

the

invention

and

the

lead

Western

weapons

defense.

tions

principle in

with

the

Communists

mention.

serves

various

rela¬

our

They

de¬

have

times

Finland

Also,
must

/■•iv:?:77://
businessmen,

our

remember

that

Communist

that to which we.must ad-

lere.

jf moral
h.nto

sense

obligation to agreements

which

whereas

our

have

entered,
Communist concept

the

that agreements and treaties

an
are

are

obligation only so long, as they
of use to Communists. I do
not

leed to quote the abundant statenents of their leaders themselves

Admitting this bare fact, nor the
ong list of treaties they have vio¬
lated.
For

recent

only point
tfalta

and

example, I

the

need

agreements

Potsdam,

which

the

Benjamin
zoned

Franklin

over

one

building.

in Poland,
Czechoslovakia. Hungary, Yugo¬
slavia, and Rumania to establish
forms

own

ments.

free govern¬
Those elections were
pre¬

vented,

they

were

never

free.

The

bitter lesson from this ex¬
was
that
the
Western
World failed to stand firm and

perience

inited in
nents.

holding to those

And

stood

agree-

by and

•An address by Mr. Hoover
before the
Manion
Forum,
South
Bend,
Indiana,
April 5, 1959.

ments

both

sides.

President

Eisenhower has stood firm in this

principle.

The

Communists

haVe

refused.
I

well

may

ments

the

spend

few

mo¬

mystery of the

cent visit of Mr. Anastas

re¬

Mikoyan,

the Deputy Prime Minister of the
Soviet Union. It. has some lessons
on

relations

our

with

the

Com¬

munists.

the

Mr.

Mikoyan

announced

the

expansion

Russia and

to discuss

was

trade

between

the

States.

repeatedly stated that such ex¬
pansion would be an important
step in lessening the tensions of
the cold war.
was

extended

used

stock

Commerce

nations :

among

tion

•

to fair and

tinal

equitable,; I

that there

Patents

and

of another nation.

partment

dinners
was

Our State De¬

stimulated
or

luncheons

series

where

Agreement among free nations by
which discoveries,
inventions, and
the writings of citizens of the - free

latter

protected for

are

The

Governments

whole

summing

free

may

the

ruth¬
ideas

The

stocks

the

purchasing

Kodak,

General

Motors,

behind

Mi\ Mikoyan's
that he had in

the

President.

determined

certain

Also

California and New

Jersey, Texas
Carbide

Union

States

Steel,

and

investor

ac¬

holding

has

able to increase both his
purchas¬

the

ing

table

power

the

the* past

applied

even

.more

to
;

has

and/ relative

past

been

wealth
This

years.

important in

in¬

Cowen & Go. Will

the " progressively
ihcome taxes levied during
are

stocks

investing funds.

illus¬
of

these

why selection is

Admit Parfner

startling

Note the value

of the Dow-Jones

Industrial divi¬

•

divi¬

figure is obtained.

Matteo

Mosca

will

membership
in • the
Stock Exchange and
will

become

acquire
New

partner

York

April 16'

in Cowen

after

adjustment
for
the & Co., 54 Pine Street, New York
purchasing power of the City, members of the New York
dollar and higher Federal Income Stock
Exchange.
Taxes
through 1929-1958, inclu¬
sive, together with: estimate" for

1959. ; :

V " V

principles in

our

Dreyfus & Co. to Admit;

has

foreign

doubt

adamant

people.

discovered
that

much

years

the

better

off

past

than

that

discovered*:

And

we-are

are

not

trust

.'But the

investor who has relied
primarily
upon
fixed
income
securities.

New

However,

clear head,

memory.

have

the

will-be
30

afraid.

•Actual

sharp eye,

President

Eisen¬

sup¬

Stock

that

Power of

of Dividend

Dollar

in Terms of

Dollar After

1935-39^100

193.~T39 $

Fed. Inc. Taxes

$0,816

$10.40

7.06

of 1935-39

$ Average

and

afraid.

united

people

behind

Adjusted

During

0.998

7.05

16.13

0.582

9.39

20.00

0.484

9.68

0.484

11.13

people

who

are

not

Year

1935-39
Dollar

$10.21/

307

6.55

135

7.55

216

126

7.12

510

247

251:
-

135

1958_____

)
*

23.00

Xlie dividends
Were

year.

$10.00

per

shown

the

include

stock

the

dividends

market

; •

value

excluded,

total

stock

cash

8.19

...

dividends

£600
paid

paid

1985-39 —100.
t Assumes

§ Based
f Price

290

during the

1958

were

share.

Department-of

taxable
a

Price

•

Labor,
1

Purchasing

Power

Index,

1947-49 —100

adjusted

investor
income

is
of

average

married

person

WO,000.00 per

•
.

Stocks

i:Div. in Terms

Exchange,

$12.75

„

will admit Martin Glatter
to partnership in the firm

Exch. Value

r-—

York

Dow-Jones Industrial

Per

Yea

Co., 50 Broadway,
York City, members of the

•^Purchasing

Dividends

fU.rS.

unwavering

noted

Parlner

May 1

who approaches jiis problems
a

Dreyfus

New

prepared

successful negotiator is

the

pending negotiations may at last
bring it to the world. '

must

M. Clatter

right selection

through

We have great hopes that the im¬

with

the

come

upon

and

stocks

mon

insist

relations.

him

Electric,

Goodyear

were

but

How¬

Company,
United

Unquestionably
the ^investor
Perhaps he wanted to disr
who has relied more
upon com¬
if our people were I united

eover

port

slightly

wealth

power.

lower

the expansion of almost non¬
existent trade to thaw out the cold

war.

his

and

relative

stocks

When

past"

market

effect

Over

the

Tire,
Gamble,
Sears, Roebuck, Standard Oils of

(or" declining purchasing
the dollar) to holders of

years.

represents
over

maintain
his

General

power of
common

National Steel, Proctor &

stocks

Performance Tabulated

adverse

man

institutional

many

"247

26,. 1959.

ever,
thanks to such
stocks as
Bethlehem Steel, DuPont, East¬

and

constitute

of Feb.

the

not

l/cp;' & y Poor's
/Many ; of the

Dow-Jones

the

dend

world.

one

ri cl

accompanying

dends,

sign/this

but they have
appropriated
these

the

higher
this period

agreement

The

trates

just and

Communist

stocks

common

average.
the Dow

portfolios.

; flation

of the great stimu¬

one

progress.

30-Year

agreements/

have been

Industrial

composite,
was

when

increase

remarkable

the

figure
15.6%

years

over

fair return for their contributions "
of new ideas.
These

given the opportunity to free¬

290

The

vestor

third

price level of all securities:

Copyrights

•.

long

and

representative

his

value of the shares, when
for the changing value
dollar, the 30 Dow-Jones'
Industrials have enabled the in¬

Industrial

about

tremendous- influence

may

hower has that awareness and he

courtesies

dollar,

and

adjusted

Interna-

the
a

for

There is

backbone

should be fair and equitable.

mention

weighted
stocks

says:

During his visit he

hospitalities due

1935-39
value
1958

>7"

industrial

425

market

dollar

tdtal/''Yalii£/d£ falf Shares
on
the 1 New? York Stock

the United

the

account

his visit

purpose of

the light of the

Dow-Jones

Selection

adjusted to the.
1935-39 purchasing power of the
dollar.. Thus, to date, in terms of

earn¬

the long
price fluctuations of the 30

term

portals

As I said at the outset, we con¬
tinue to strive for world'peace.

Answers Mikoyan

traded

embla¬

something beyond his idea

such agree¬

The

Department
of Commerce
building was under
construction during
my Adminis¬
tration, I chose a sentence from

mind

there

power

past 30 years.

and Federal Income Taxes for the

present

machinery to enforce

stocks

Exchange.

visit,

reach such agreements
must be set up independent
we

reference

co-relationship; between

But, from our bit¬
experiences, we have learned

that if

with

purchasing

»;

fundamental difference in moral

from

are not

McCuen

Industrials

Dow-Jones.

concepts between the Communists

adverse

pro¬

vided for free elections
heir

Our people

Melvin

and ourselves.

such steps.

to
ter

This reflects itself in

seeming ideas of promoting

made

Further, there arises here again j. of ' the

lessly

stocks

other

from it. The atheistic
Jommunists, who deny all religi>us faith, have no code of
morals

study.;:

the

Support

age ; composite
price
of
307,.
equivalent to 251 in terms of thq.

be--,

we
a

known

York.

peace.

which

the past 30 years will prove
enlightening.
This analysis -will

agent in New

•;uch

codes

there

thing as free action between
our free enterprisers and the Rus¬
sian people. Our people must deal

have sprung

moral

ings and dividends of these well-

such

have not only refused to

the

and

to Mr. Mikoyan's pro¬

posals

nuclear weapons tests, tlie reduc¬
tion or limitation of
armies, and

v'aith

religious

upon

a
o

lants

based

are

Findings

However, had the investor
bought each of the 30 Dow-Jones
Industrial stocks in 1929 at .aver4:

one's

point,
lieve

•
,

increase

proposed "peaceful
co-existence,"
the
abolition
of

ictions

trade

has

k s

prove

little:

our

pur¬

in
1929 to
$9.68 pe?
in 1958.
And after Federal
Income Taxes, the $10.21 dividend
in 1929 was reduced to
$7.12 in
1958.

the Dominican Republic or Ecua-> for

world

Another

than

u
c

the

dollar

Industrials

dor or Liberia.

must

little

or a

investor

the

i
f

•

selecting
g r o
s

re-

exports to; hindsight,

our

imports from them averaged about
$20,000,000 each year. This micro-

scarcely need mention that in

the

But

the

decline

exchange value-of the
$10.40 dividend paid on the Dow

Fed¬

.'7.

t i

s o r

protected

the

power

reduced the

income

Without

be¬

their 180,000,000 people averaged
only about $40,000,000 yearly. OuF

the

im-i

trade

tween the United States and Com-'

When

unceasing blustering
and
warnings showered

used to them.

eral

with

conquest of Western Europe, and
prevent the breakdown of prin¬
ciples and morals in international

creasing

fully

chasing

pe¬

dollar and in-

taxes?

power.

because

ing purchasing
power
of the

from 1934 through 1939, "uriwere

not

stocks

common

importance in

purchasing

income point of view the
Dow-Jones
Industrials
have

power.

riod of declin¬

til the interruption of the Second

War, there
portant restrictions

from

inves--

in.

World

today with Denmark

Firmness today alone can bring
halt in the creeping Communist

which

Principles

lessons

can

ple of Berlin and gives hope of
Hep toward pence.

our

learned

feeling
for

by mutual consent in a fashion
which truly protects the free peo¬

;

long *ational experi¬
ence
it would seem
appropriate
.0 shortly review some of the les¬
sons

leaders

people been

today at stake.

ments

either

years,

official duties

of these problems.

From

before in

our

unity of the free world is

held.

the

as'

purpose.

During these

through

ex¬

should have

now

lessons

some

Western

bitter

some

also

some

basis of peace with the Commu¬

World

have

their
come

must

The

proposed with
Russia in the hope that it will
bring some
relaxation
of
this
For

the

speak for the American people.
He has spoken. And our support

Hoover

exchanges is

peace¬

President Eisenhower alone

known.

stand.

ever

and

has

and

never

recollection

time

w a r

conference

nations

at stake.

are

united

dan¬

than mankind

has

world

Fortunately,

tensions
the

hu¬

tors

volume of
most improb¬

any

years

tions
moral

lurk

such

Therefore

purchasing

much

afford

we can at our wage

And, in support of this, I may
call up a little statistic. In the six

ful

involves

are

and

How

materials

raw

investor's

wealth

paramount

both wealth and

objective is to
maintain arid increase his relative

Western Europe

beings in Berlin is not large.
But the principles of decent rela¬

But

fact

cheaper than

again
confronted with precisely the
same
Communist concept of
we

Berlin is only
their latest.
in

And

exchange for these

moment

The

Europe which does

make manufactured goods to

can

freedom

five nations.
At

them.

need

the

order to increase

amounts
of
Russian
materials. Their natural mar¬

raw

investor in

v/as
able "to maintain and
slightly in¬
his relative wealth but not his
purchasing power." The

moral drawn is that selection is of

with the

$20,000 bracket

crease

sequential

man

free peoples.
For behind

•

have learned

experience with the Russian? and the principles to
urges we stand fast, and calls for unwavering, united

our

which he

like the United States,
great reservoir of raw mateHals. We have no need for con¬
is

Diego, Calif.

Diego investment counselor pragmatically examines 30

Russia,

is not

consequence

McCUEN

D-J industrial stocks for past 30 years. He comes
disallusioning finding that the married, California

with

trade

•

explains why free, fair, equitable trade of

Purchasing Power
MELVIN

San

been,
to be,

would thaw out the cold

Investment Counselor

never

consequential

Russia

impending summit meeting, former President Hoover

toward

way

down-to-earth

there

that

nor

And

is, however,

fact

Pres. Eisenhower's advisors

among

with

expound his

peace.

City

radio

Mikoyan is an intelligent,
highly informed man and his pro¬
posal should be analyzed as to

Directing his rebuttal against those who place great credence
in Mr. Mikoyan's plea for expanded U.S.S.R.-U.S.A. trade,
and who may

project

and

our

Mr.

of the United States

York

his

men

over

press.

By HON. HERBERT HOOVER*
Former President

discuss

business

Thursday, April 9, 1959

...

the high

February 20, 1959.

and

resident

year.

low

for

the

year.

the

State

California

with

Volume 189

Number 5836... The Commercial and Financial Chronicle

(1631)

New Issues

,-:f

000,000
High School District

Dated May

31/2%

1, 1959

'•-■i

School

•

Los

Junior

•

College District

•

Angeles County, California

Bonds,

Due

District

Election

1958, Series C

May 1, 1960-84, inel.

Payment and Registration

Principal and' semi-onnudf interest'(May I and November I)
the holder,

fornia.

at the

at gny

III. First coupon

,;v"

J..

to both principal and interest.

Tax Exemption

•••

payable by the Districts

$12,000,000

•.

'Los

$12,000,000

•

Los

their bonds is exempt

upon

believe these bonds

banks

and

other

California

of the

amount

for

•

School

the

upon

...

Junior

School

Yield

College

Due

I960

$480,000

$120,000

480,000

120,000

1961

'480,000

480,000

120,000

1962

be invested in bonds which

may

eligible

are

V PurPose and Security

legal investments for savings

are

security for deposits of public

;

480,000

in-California,

moneys

480,000

120,000

1963

480,000

120,000

1964

480,000

120,000

,1965

480,000

120,000

1966

2.90%

1967

2.95%
3.00%
3.05%
3.10%
3-15%

These bonds comprise separate issues of three distinct districts. The bonds of each issue,
the opinion of counsel, constitute the

trict and

levied without limitation

the

rate

amount

rote

amount

may

thereof,

the issuing

480,000

120,000

480,000

120,000

480,000.
-•

480,000
480,000
'

'480,000

480,000

>•

120,000

" '

1969

.120,000

1970

480,000

120,000

1971

480,000

120,000

1972

480,000

'120,000

1973

480,000

120,000

1974

480,000

•

3.20%
3.25%
3.30%
3.35%
3-40%

District.

1968

'480,000

480,000

be levied without limita¬

may

'480,000

480,000

all taxable, personal property, except certain classes

upon

taxes which

all ol the taxable real property'in

upon

issuing District and which, under the laws riow in force,

tion
.

legal ond binding obligations of the issuing dis¬

poyoble, both principal and interest, from od valorem

arc

2.00%
2.20%
2.40%
2.55%
2.70%
2.80%

funds which

120,000

120,000.

■;

1975

;

„•

.'480,000

*w.

__________

480,000
Tax
These

bonds

tr '

value,

par

[

will

Gain, Amortization

initially- issued

and

taxable

gain

above

the

accrue

may

of Premium

named

political

bonds -purchased

' are required under existing--regulations to amortize

any

not

less .than

discount.

Investors

premium paid

their

above

bonds

well

offered

are

other

when,

underwriters

and

whose

Los

Bank of America

will

names

O'Melveny i

Meyers,

request,

Attorneys,

480,000

The Chase Manhattan Bank

The First National City Bank

The First Boston Corporation

120,000

1980

below

480:000

480,000

and

Bankers Trust Company

•

120,000

1982

120,000

1983

120,000

1984

Harris Trust and Savings Bank

k Security-First National Bank

American Trust Company

The Illinois

Company

Drexel & Co.

Seattle-First National Bank

William R. Staats & Co.

<•

William Blair &

Bacon, Whipple & Co.

Schoellkopf, Hutton & Pomeroy, Inc.

Company

R. W. Pressprich & Co.

Mercantile Trust Company

Clark, Dodge & Co.
A. M. Kidder &

Company

W. E. Hutton & Co.

Laidlaw&Co.

Company of Georgia

Incorporated

Stroud & Company

C. F. Childs and Company

C. J. Devine & Co.

Hornblower & Weeks

Fitzpatrick, Sullivan & Co.

Commerce Trust

Coffin & Burr

Wertheim & Co.

Kansas

Ira Haupt & Co.

New York Hanseatic

Corporation

Incorporated

Republic National Bank
of Dallas

Robert W. Baird & Co.
Incorporated

Dallas Union Securities

Company

A. G. Edwards & Sons

Dittmar & Company, Inc.

Konsas City, Mo.

Ginther &

Co., Inc.

Bacon, Stevenson & Co.

Andrews & Wells, Inc.
■/

/.■

Company

Incorporated

Tripp & Co., Inc.

City National Bank & Trust Company

The Fort Worth National Bank

R. S. Dickson &

Company

City, Mo.

Wm. E. Pollock &

W. H. Morton & Co.

Field, Richards & Co.

Company Of CfllCagO

Equitable Securities Corporation

National State Bank

Lee Higginson Corporation

Taylor and Company

Incorporated

••

and TrUSt

Ladenburg, Thalmann & Co.

First Southwest Company

Laurence M. Marks & Co.

*
id

•

Stone & Youngberg

Blunt Ellis & Simmons

Incorporator!

Glore, Forgan & Co.

The Philadelphia National Bank

J. Barth & Co.

Reynolds & Co.

Francis I. duPont & Co.

Co., Inc.

Trust

Shearson, Hammill & Co.

v-.

Roosevelt & Cross

1. P. Morgan & Co.

Newark, N. J.

Hirsch & Co.

3.60%
3.60%

Continental Illinois National Bank

Los Angeles

R. H. Moulton & Company

Incorporated

First National Bank in Dallas

3.55%
3.55%

Guaranty Trust Company

California Bank

Incorporated

•

100

of Oregon

Dean Witter & Co.

100

•>

Lazard Freres & Co.

The First National Bank

Incorporated

Bear, Stearns & Co.

100
•

1981

120,000

480,000

■480,000

San Francisco

1979

of New York

Smith, Barney & Co.

The Northern Trust Company

Merrill Lynch, Pierce, Fenner & Smith -

3.45%.

V-

1978

120,000

of New York

Chemical Corn Exchange Bank

E. F. Hutton &

120,000

480,000

1977

Angeles, California.

N.T.iS.A.

Blyth & Co., Inc.

1976

■120,000

thereon.

underwriters listed

furnished

<■

480,000

if issued and received by the

shown

not

subject to approval of legality by Messrs.

480,000

480,000
-'

480,000

Legal Opinion
The

;

480,000

subdivisions

Price

likewise legal investments in California for

are

>•.

High

savings banks, subject'to the legal limitations

bank's investment, and

banks, ond

legal investments in New York for trust, funds and savings

are

Angeles City Junior College District

-•

Legality for Investment

$3,000,000
Las

■

Angeles City School District

personal income taxes under existing

regulations and court decisions.

statutes,

•

Angeles City High School District

■'

all" present Federal Ond State of California

■■■•

OR PRICES

(Accrued interest to be added)

in Chicago,

(annual) payable May I, I960. Coupon bonds in denomination of $1,000

.-In the opinion of counsel, interest
"Onv

AND YIELDS

Los Angeles, Cali¬

of the fiscal agencies of the County in New York, N. Y.,

registtrabl^onfy
A-

ISSUES, AMOUNTS, MATURITIES

payable, at the option of

office of the Treasurer of Los Angeles County in

Company V Gregory & Sons

J. A.

Hogle & Co.

Industrial National Bank of Providence

Kalman &

Company, Inc.

Kencwer, MacArthur & Co.

Kean, Taylor & Cor

Chas. E.

G. H. Walker & Co.

Irving Lundborg & Co.

Weigold & Co., Inc.

J. R. Williston & Beane

City National Bank and Trust Company

Burns, Corbett & Pickard, Inc.

Wood, Gundy & Co., Inc.

Thornton, Mohr and Farish

Stern, Lauer & Co.

Mercantile National Bank of Dallas

of Chicago

Julien Collins &

Company

Ernst & Co.

Fahey, Clark & Co.

The First National Bank

Fahnestock & Co.

First Western Bank & Trust Co.

of Memphis

Northwestern National Bank,

Wm. J. Mericka & Co., Inc.

of Minneapolis

Stubbs, Watkins and Lombardo, Inc.

Provident

San Francisco, Calif.

Savings Bank & Trust Company

Shuman, Agnew & Co.

Hill Richards & Co.

of Saint Paul

Piper, Jaffray & Hopwood;
April 8, 1959

A circular

Lyons & Shafto
Incorporated

F. S. Smithers & Co.

Stern, Frank, Meyer & Fox

Third National Bank

Spencer Trask & Co.

Robert Winthrop & Co.

H. E. Work & Co.

in Nashville

The First National Bank

J. B. Hanauer & Co.

Lawson, Levy, Williams & Stern

Corporation

McDonnell & Co.

McMaster Hutchinson & Co.

First California Company

First National Bank

Incorporated

of Minneapolis

Mitchum, Jones & Templeton

may

The National City Bank
of Cleveland

Ryan, Sutherland & Co.
relating to these bonds

Zahner and Company

Seasongood & Mayer
be obtained from

any

White, Hattier & Sanford

of the above underwriters,

well

R. D. White & Company

other underwriters not shown whose

names

Arthur L. Wright & Co., Inc.
will be furnished

request.

The Commercial and Financial Chronicle...

(1632)

Boeing
2

McKinnon,
Also available is a report

Firms Board of Governors meet¬

ing at the Pfister Hotel.
June 5-7, 1959

Homsey & Company, 31 Milk

Carrier

Corporation

Data

understood that the firms mentioned will he pleased
to send interested parties the following literature:

Petroleum

San Francisco

Oppenheimer, Neu & Co., 120
Broadway, New York 5, N. Y.'Also in the same circular
are data on International Business Machines
Corp., Phillips
—

—

Company, Pittsburgh

Plate

Glass Company

Itarnfutai View -—.Monthly Investment letter

625 Madison

burnnam and

—

Company, 15 Broad Sjpeet, New York 5, N. Y.

Cooper

Also avail-

(and surrounding Texas towos)—Booklet in¬
cluding price range, capital, surplus, etc.—Kay and Co., Inc.,
2316 South Main, Houston 2, Texas.
How to Get Rich Buying Stocks—Dr. Ira U. Cobleigh--David
McKay, Inc., 119 West 40th Street, New York, N. Y.—$2.50.
Japanese Stocks—Current Information

Crane

and

Yamaichi Securities

Company of New York, Inc., Ill Broadway, New York.7,
"'T""'
Japanese Warehouse Industry — Survey — Nomura Securities
New York.

Cutter

1959

and

data

Daiichi

Bussan,

Mitsubishi Shoji and Marubeni-Iida.
of

York

New York

5, N. Y. Also available is
Cyanamid Company.
&

72 Wall
study on in¬

Insurance

study of American

Company

Light—Bulletin—Ralph E. Samuel

Micromatic Ilone Corporation

—

States

Telephone

—

Bulletin

—

De Witt

Co.—Memorandum—A.

ville

Sealed Power

Upham &

Corp., and McCall Corporation and the current issue

Public

Utility

with

Common

and

Life

Insurance

Companies

—

Circular

-*-■

lin

■

;7 ing, Wianno Club.
Aug. 9-21, 1959

II.

York 30, N. Y. Also in the
Company,

Pure

issue

same

Oil

are

data

Company,

•

115

Club.

Sept. 23-25, 1959

120

port

Louisiana

Gas

Burlington

Industries,

Also available

and

list

are

Sept. 28-29,

Association

Stock

Exchange

First Board of Governors meet¬

Oct.

Incorporated,

14-17,

1959

(Philadelphia,

Pa.)
Consumers Bankers Association

Corp.—Memorandum—Goodbody & Co.,

39th

convention

annual

the

Oct. 22, 1959

Convertible

EVENTS
In

Field

Investment

Ohio

Security Dealers of Nashville
Annual party at Hillwood Coun¬
try Club and Belle Mead Coun¬
try Club.

COMING

Ltd.,

R.—Review—Alfred

May 15, 1959 (Baltimore, Md.)
Baltimore Security Traders Association
24th
annual
Spring

Vanden

Liberty Street, New York 5, N. Y.

10, 1959

Apr.

(Toronto, Canada)

(Cincinnati, Ohio)
Group of Investment

Bankers Association annual fall

meeting.
Nov. 2-5
'■

1959

National

(Boca Raton, Fla.

Security Traders Asso¬

tion annual dinner at the
"

Edward Hotel.

April

King

29-30-May

1959

(a) Operating Utilities

Calif.)
Security Traders Association of
Los Angeles summer party at
the Biltmore, Palm Springs.

(St.

Dealers
Group annual spring party at
the Sunset Country Club.
May 19-20, 1959 (Omaha, Neb.)
May 1, 1959 (New York City)
Nebraska
Investment Bankers
Association annual field day
Security Traders Association of
.

New
.

York

the

23rd

annual

dinner

May 25-26,1959 (Milwaukee, Wis.)

Waldorf-Astoria.

(b). Natural Gas .Companies
./Transmission, Production

Association

Stock

Exchange

and

Enhanced

Troster, Singer & Co.

speculative appeal for younger companies?

Alco

Members New York
Security Dealers Association

Also Reports

Oil & Chemical Corp.

Century Geophysical Corp.

Trinity Place, New York 6, N. Y.

annual

Members New York
115

Broadway

meeting

Sheraton Dallas.

York Co.

the

Opens Branch

SAN RAFAEL, Calif.—York &
Co. has opened a branch office at
1000 Fifth Avenue under the man¬

agement of Jess J. France, Jr.

HOW TO

—

BUYING
STOCKS
lust published! By IRA U.
COBBICICH, Col¬
umnist, Commercial and Financial Chronicle

American Investors Corp.

Your

Lunn Laminates, Inc.

for the

surging 60fs.

]

ONLY $2.50 at your bookstore, or
postpaid from

Security Dealers Association
New York 6,

exciting guide to

the 60 profit-laden stocks

Searight, Ahalt & O'Connor, Inc.

Teletype NY 376; 377; 378

*•

GET RICH

Tax Legislation
LIFE INSURANCE COMPANIES

HAnover 2"24M

25th

—

Special Study

& Distribution

AnnualT Convention

outing at Country Club of
April 6-7-8, 1960 (Dallas, Tex.)
Maryland. r•
• 7
•
Texas
Group, of
Investment
Bankers Association of America
May 15-17, 1959 (Los Angeles,

Louis, Mo.)
St.
Louis
Municipal-

Trading Markets in-

ciation

the Boca Raton Club.

;

Toronto Bond Traders Associa¬
•

(Toronto,

Broeck & Co., 55

Firm

1959

Canada)

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

re¬

which appear interesting and the current issue of
"Investment Review" which discusses the boom in services
and leisure time.
r.;//7777 >'7 7;:77v7'-v:

Group

Bank

Warwick Hotel.

Bonds

Beecham

Association

Women 37th annual convention.

Broadway, New York 6, N. Y.

Company—Report—Reynolds & Co.,

Broadway, New York 5, N. Y.

(Milwaukee,

Wis.)
National

Street, New York 4, N. Y.
Arkansas

—

ing at the Royal York Hotel.

Inc.—Report—Loewi & Co.
225 East Mason Street, Milwaukee
2, Wis.

Inc.—Analysis—Oppenheimer & Co., 25 Broad

outing

Rorer,

Wyandotte Chemicals

annual

City Club; field
daj', Friday, Kenwood Country

Giannini, Inc., and Food Mart Inc.
William

Cincinnati

cocktail and dinner party Thurs¬

Incorporated, 159 Broad¬

Picher

Banking,

Sept. 17-18,1959 (Cincinnati, Ohio)
Municipal Bond Dealers Group

White Motor Company—Data in current issue of "ABC Invest¬
ment Letter"—Amott, Baker & Co.,

way, New
the Eagle

Consumer

University of Virginia.

Vanden

Co. and Atlantic Coast Line Railroad Co.

—

(Charlottesville,

Va.)
School

Broeck &
Co., 55
Also in the same circular
National Standard Co., Timken Roller Bearing

(Hyannis, Mass.)

day at Queen

Co.—Data—Alfred

data

...

Consumers Bankers Association
Atlantic States Sectional meet-

Streets, Richmond, Va.

are

June 25-27, 1959

Liberty Street, New York 5, N. Y.

.•

Allen Industries

Philadelphia Securities Associa¬
tion annual outing at the Overbrook Golf Club, Radnor Township.
/;;."7
„•/
7 V ,
7'S

Companies.

Walgreen

and Lumi Laminates, Inc.
.

June 19, 1959 (Bryn Mawr, Pa.)

•

Searight, Ahalt & O'Connor, Inc., 115 Broadway, New York
6, N. Y. Also available are reports on Alco Oil & Chemical
Corp., Century Geophysical Corp., American Investors Corp.,
•

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

Virginia Electric and Power Company—Annual report—Secretary, Virginia Electric and Power Company, 7th and Frank¬

Legislation

1959 (Minneapolis-St.
Paul, Minn.)
Cities
Bond
Club
38th

Twin:

Bear

—

Rubber

(Philadelphia, Pa.)
Traders Association

annual

United Carbon—Analysis—Baclie &

Stocks—Comparative figures—G. A.
Saxton & Co., Inc., 52 Wall Street, New York
5, N. Y.
Puerto ^Rico Water Resources Authority—Report—Government
Development Bank for Puerto Rico, San Juan, P. R.
• ;
Research—Key to Healthier America—Discussion of drug and
pharmaceutical companies in April issue of "Exchange"—
Exchange Magazine, 11 Wall Street, New York 5, N. Y.—
$1.50 per year (20 cents per copy). Also in the same issue
is a warning by G. Keith Funston to
inexperienced investors
to approach investing with care and caution.
Southern California—Summary of business conditions—Secu¬
rity First National Bank, Research Department, Box 2097,
Terminal Annex, Los Angeles 54, Calif.

Tax

;

Corporation—Analysis—A. G. Becker & Co., In¬
corporated, 60 Broadway, New York 4, N. Y.
Co., 36 Wall Street, New
York 5, N. Y. Also available is a bulletin on four Tire &

selected lists of securities.

12, 1959

June 18,

Conklin

Allyn &

New

outing at West¬
chester Country Club. V

Philadelphia Summer outing
at the Overbrook Country Club.

Co., 122 South La Salle Street, Chicago 3, 111.
Ocean

Club

Summer

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

the

(New York City)

Bond

Investment

Co., 120 Broadway, New York 5, N. Y. Also available are
reports on Raytheon Manufacturing Company, Johns Man-

Industry—Analytical brochure—Harris,

review

York

June

Co.,

Drilling & Exploration Co. — Memorandum
R. W.
Pressprich & Co., 48 Wall Street, New York 5, N. Y.
Portland General Electric—Analysis—Hill Richards &
Co., 621
South Spring Street, Los Angeles
14, Calif.

"Market"

—

Co., 25 Broad Street,

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, N Y

1959

Municipal

River Insurance

Power

summer
outing
Country Club.

June 12,

Companies—Analysis of U. S. Fire

Broadway, New York 6, N. Y.
Ford Motor Co. of Canada Ltd.—Analysis—Charles
King &
Co., 61 Broadway, New York 6, N. Y.
Griggs Equipment Inc.—Analysis—Winslow, Cohu & Stetson,
26 Broadway, New York 4, N. Y.
Hertz Corporation
Annual Report — The Hertz Corporation,
Treasurer, 2J8 South Wabash Avenue, Chicago 4, 111.
hazard Fund, Inc.—Quarterly report—Lazard
Fund, Inc., 44
Wall Street, New York 5, N. Y.
P. R. Mallory & Co.
Inc.—Analysis—Schweickart & Co., 29
Broadway, New York 6, N. Y.
/.
/ : ;
1 ,777 ; ; •

Jones

ciation
Salem

115

New York 4, N. Y.
7'*/
7\7■
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

Petroleum

Boston Securities Traders Asso¬

Laboratories—Analysis—Hayden, Stone & Co., 25 Broad

Florida

Banks—Quarterly comparison of ten largest
banks in New York City—Bankers Trust Company, 16 Wall
Street, New York 15, N. Y.
New York City Bank Stocks—Comparison and analysis lor
first quarter of 1959—Laird, Bissell & Meeds, 120 Broadway,

Oils—Discussion-of outlook—Hirsch

Co.,

circular are reports on National Distillers, Cluett Peabody and Ruberoid Company.

City

Springs Hotel. .7, 7:-:

June 11, 1959 (Boston, Mass.)

same

Trends—Quarterly survey—First National Bank
Boston, Boston, Mass.

New

Emerson Electric

New England

Rosa,

Street, New York 4, N. Y.
Manufacturing Co.—Report—Shearson, Hammill & Co., 14 Wall Street, New York
5, N. Y. Also in the

Co., Ltd., 61 Broadway, New York 6, N. Y. Also in the same
monthly report are discussions of the 10 Japanese stocks
for

Hentz

Company, Westchester Fire

North

Rosa

Santa

Banff

Company—A. M. Kidder & Co.,
Inc., 1 Wall Street, New York 5, N. Y. Also available is an
analysis of American General Insurance Company.

considered favorites

Avenue, New York 22, N. Y.

Forster Insurance

Insurance

the

Motel.

of Canada annual convention at

Bessemer—Memorandum—H.

Crum &

Security Traders

8-11, 1959 (Alberta, Canada)
Investment Dealers' Association

•

Company—Report—Herzfeld & Stern, 30 Broad Street,
York 4, N. Y.

New

Flamingo
Calif.

Corporation—Analysis—Sutro Bros. & Co.,

Street, New York 6, N. Y. Also available is
vesting in bonds. O.'7/-\;;7:; ^ ' 7.<:7:7

able is current Foreign Letter.

Houston Banks

Association

June

Sealright Oswego Falls Corp.
Chock Full O'Nuts

(San Francisco,

Calif.)

Street, Boston 9, Mass. Also in the same issue are data on
Iiarsco Corp., New England Gas & Electric Association, and
Pepsi Cola.
'
'■

ii
•

\orK 4, N. Y.

Erie—Data—du Pont,

Bucyrus

Recommendations & Literature
If

Company—Report—Thomson &

United Air Lines Inc.

Dealer-Broker Investment

Airplane

broactway, New

Thursday, April 9, 1959

N. Y.

David McKay Co., Its W. 40th
St, N. Y. 18, N. Y.

Number 5836... The Commercial and Financial Chronicle

Volume 189

Exchange Members

Coast

sale

The

geles Stock Exchange and served
on its Governing Board.

Los
Angeles Division of Pacific Coast
Treasury memberships by the

announced
by Thomas P. Phelan, President.
The memberships w ere purstock

Exchange

was

Charles T. Jawetz

Daniel

Reeves

Carlisle,
ards&

Mr., Jaweta has been active in
San

Francisco,

Los

1927

Hill Richards & Co.

land. Before thathe was a partner
This brings the total number of in the law firm of Hauxhurst,

outstanding

Angeles,

memberships

in ^ the

0penS NeW Bnmch

researcn

TULSA, Okla^-Western Secu-

Inglis, Sharp & Cull.

Los Angeles Division to 73.

Mr.

Hobbs

joined

•

;

•

Hanna

-r,

dale.

National City Bank.
-

* '

BROOKLYN,

last- Programming Service, Inc.

Interest Exempt from Federal Income Taxes under Existing Statutes and Decisions

Exempt from Taxation by the State of Connecticut

AJJ.

i^empsey-1egeier
eras
(special to the financial chronicle)

Y.—The firm

name
Investors Programming
Service, 189 Montague Street, has
been changed to Personal Income

;

nemnsev Tweler

New Firm Name

the trust department of

became a floor representative for
'

the securities business since
in

represent Hill Rich-

t?radu-

T ''

Two new directors have been

elected to the board of The M. A. ±or Liark, Dodge & Co., a leading rities, Inc. has opened a branch
Hanna Company.
- New\ York investment company, office in the Daniel Building lin¬
Tlie new directors are William Prior to that he was a Vice-Presi- der the direction of C. G. Argo-

ues ousiness loiiowmg nis graau- .
„
virp-PrpdHpnt
nnA'
ation from the University of Treasurer' of the company, 'and
Southern California, as a floor re- William L. West, who for seven."
porter on the Exchange and later years
was
Vice-President in.

& Co., and Jay F.

Co.

carlisle entered the securi-

business following his

chased

Named

LosaT,

additional

two

(1633)

Dempsey-Tege^er &

lW)0 Lo-

cust

street, members of the New
York and Midwest Stock Exchgs.

vjT'

^ailllllMilliillilHilliliiliHIIIIIIHIIIUillllllllllllll^

Eligible, in

our opinion, as Legal Investments for Savings Banks and Trust Funds
in New York State, and for Savings Banks in Massachusetts,

Connecticut and certain other States

New Issue*

$16,910,000
•

State of Connecticut

3% Bonds

g|f

Dated May 1, 1959. Due May 1,

■?

shown below. Principal and semi-annual interest (May 1 and November 1) payable in New York City at The First

National City Bank of New York or in Hartford at the office of the State Treasurer or at the Hartford National Bank and Trust Company.

ESS

Coupon Bonds in denomination of $1,000, registrable

EES

to principal only or as to both principal and interest.

|H
|H

These Bonds, issued for various purposes, in the opinion of counsel named below are general obligations of the State of Connecticut,^
and the full faith and credit of the State are pledged for the payment of the principal of and interest on the Bonds.

.illlllllllllllllllilllllllllllllllllllllllllll[|||||llllllllllllllllllllllllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllKv

=•

SEE

AMOUNTS, MATURITIES AND YIELDS OR PRICE

$850,000 due each May 1, 1960-69, inclusive

$845,000 due May 1, 1970 and 1971

$840,000 due each May 1, 1972-79, inclusive
Prices
Due

1960
1961
1962

=
Yields

Prices
Due

to Yield

Due

to Yield

1.90%

1965

2.05

1966

2.20

1967

Price

2.50%

1970

2.80%

2.60

1971

2.85

2.65

1972-73

2.90
2.95
100

1963

2.30

1968

2.70

1974-75

1964

2.40

1969

2.75

1976-79

(Accrued interest to be added)

==
.

===

j§
=

§§

')|||||||||||1|||||||||||||||||||||||||||||||||||||||||||||||!II!IIIIIIIIIIIIIIIIIIIIIIIIIIII||||||||||||||||||||||IIII|||IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII|I'

The above Bonds

are

and received

offered, subject to prior sale before or after appearance of this advertisement,

B. J. Van ingen & Co. Inc.

Hornblower & Weeks

M-

Schoellkopf, Hutton & Pomeroy, Inc.

c. F. Childs and Company

SEE:

Incorporated

Lincoln R. Young & Co.

Blair & Co.
Incorporated

Wertheim & Co.

First of Michigan Corporation

Reynolds & Co.

Singer, Deane & Scribner

Branch Banking & Trust Company

Robert Winthrop & Co.

Model, Roland & Stone

Thomas & Company

Roosevelt
t Cross
Incorporated

Dick & Merle-Smith

National Bank of Commerce

Adams, McEntee & Co., Inc.
J. A. Hogle & Co.

•'

Winslow, Cohu & Stetson

McJunkin, Patton & Co.

Industrial National Bank
of Providence

Anderson & Strudwick

Hallgarten & Co.

Weeden
& Co.
Incorporated

EEE

SEE

Kuhn, Loeb & Co.

Seattle-First National Bank

F. S. Smithers & Co.

American Securities Corporation

==.

and if issued

Harris Trust and Savings Bank

Halsey, Stuart & Co. Inc.

Stone & Webster Securities Corporation

■==

and subject to the approval of legality by Messrs. Robinson, Robinson & Cole, Attorneys, Hartford, Connecticut.

The first National City Bank of New York
Phelps, IFenn & Co.

for delivery when,

National Bank of Westchester

§|

Frantz Hutchinson I Co.

j||

The Commercial and Financial Chronicle

(1634)

showed

2% less than in '1953,
it expanded by 8%
again. Growth in both 1956 and
1957 was below average, and in
1955

nonsense" to contend there

high employment, and price stability. Moreover, he relies on
empirical evidence to show there's little to indicate a causal
connection between inflation and growth, and deflates the //
notion that inflation is incapable of being controlled, or that it
is a necessary price for high employment. Mr. Deming doubts
growth curve can ever be smooth, denies price stability means
price fixity, and notes we could be producing a great deal more
if we wanted to give us leisure for more productivity gains.
The banker sums up the disadvantages of inflation and pin

Reached

Gross

Frederick

Na¬

Also,

Deming

1944

cite.

tional Product

1947 was

given in terms of cur¬
rent values or prices, so to get
real or physical changes, we have
to adjust for the price factor. If
we do not do this, we sometimes
get the illusion of growth when
actually there has been nothing
but price change.

about 13%

figures

are

real

tional
more

the

Product

the

Gross

increased

Na¬
little

than 100% from 1934 through

1947.
of

terms,

Taking the estimated level

GNP

for

1959

that

underlies

President's

budget message,
the gain from 1947 through 1959
will be a little more than 50%. If
we use

this

1958 prices to value all of

output,

increase

find that the real

each

period approxi¬
billion. Thus the net
gain in output in each period was
approximately the same. The fact
that the percentage change in the
latter period was just half that of
the former
reflects
the
higher
mates $160

base in 1947 than in 1934.
*An address by Mr. Deming before! the
Instalment
Credit
Conference,

National

Sponsored by the American Bankers As¬
sociation, Chicago, March 10, 1959.

terms

a worse

than

GNP

1951

This may come

civilian

part of the economy ac¬
tually was better off in terms of
physical goods and services avail¬
able.

the big war production
1944, and we had a very
price rise right after the

But

year was

sharp

now

pensate

involves

level

was

did

influenced

the

strong

these

com¬

and

ups

factors;

but.

Almost by

tivity

coincidence, produc¬
output per man-hour,

combined result of improved
technology and more and better
capital goods, has grown in this
country at an annual rate that
the

fairly close to equaling the
growth
rate in output.
Productivity has
increased
by

comes

about 21/2%

compounded
Like the output
the course of productivity

this

per year

century.

point to be made
side

growth is important.

It is not
enough to have capacity to pro¬
duce

goods and Services; we have

about

of the whole

This

3%
is

per

the

year

record

cf the 20th

Century
equivalent
doubling real output every 25
years.
Second, this is an average
rate ox growth; and growth in any
one, two, or several-year period
may
be substantially higher or
lower
than
average.
Thus
we
to

date.

That

rate- is

for

man's

service

true for

public

that

have

any

or
as

it is for private

This

services.

and

goods

never

for

want

or
specific good
insatiable.
This is

particular

balanced

have

means

growth in demand to accompany
the
If

growth in capacity to produce.
fail

where

will find instances

have

balance

attain

equilibrium,

much

too

little capacity or too much or too
little demand.

These instances, as

illustrated

behavior

the

over

past three years, produce infla¬
tionary tendencies or recession.
One final point about growth
needs to be made, and it is an im¬

These Securities

and services.
taken

This is why we have
fruits of pro¬

of the

some

ductivity in the form of increased
leisure, and this is why it is dif¬
ficult to compare growth rates as
between countries or over

periods
percentage gain in

The

time.

our

pro¬

ductivity gains in the form of in¬
creased

leisure and

the form of

This
of

the

brings

growth

about

half

output.
to the other side

picture—the

as a matter

of record only.

con-

that

growth

far

not a smooth
likely to make

process, nor are we

so;

that we

can

want to,

but that there has

some

produce more
involved; and

purpose

have

been

better

done

the

doing

the

some¬

whole

post

average

have
during the

20th Century to date.

were offered as a speculation.

High Point Chemical Co., Inc.
■■

(A New York Corporation)

turn

the

now

lars.

the

National

Product

and almost 4/5 of the
consumer price rise occurred be¬
tween
1939
and
1951.
This, of

rise

is the period that saw the
defense build-up, World War II
and its aftermath, and Korea. Or
to turn the example around/only
1/10 of the wholesale price rise
course,

and 1/5 of the consumer
took

price rise
place in peacetime, classing

the

fkamnt, illurpijg $c (Ciu, 3ttr
April 9, 1959

NEW

YORK

4, N. Y.

indicate
tween

connection

be¬

growth.
Of
economic Z theory
and

general

course,

and

causal

inflation

history both lead to the

con¬

clusion that inflation tends to work

against

rather

than

and

record

the

that
of

conclusion.

inflation

often

for

have

recent

growth,
with

consistent

The

evil

effects

cited

been

that they
be given but brief mention

need

here.

The

years

adverse

effect

sav¬

ing, which is required to finance
the capital investment on which
growth is based; the tendency to¬
ward

speculation

unwise

and

unwarranted

expansion; the up¬
push of costs, which tends

ward

all

well-known developments,

are

None of these

cally

growth;
would

can be argued
logi-:
being promoters of
their actions naturally **

seem

Thus,

the

shows

occasions

had

inhibit

fact

both

that

growth

•„

growth.

the

when

record
have

inflation

and

SOwling Green 9-5190

present cold war period as
peacetime.
In contrast to this,
40% of the gain in real output
occurred
in peacetime and just
60% in the yearsl 1939-51.
What is
is

the

substantial growth
without
appreciable inflation, does the rec¬
ord give encouragement. Actually,

was

the

whole

1948

even

fact

that

noteworthy

roughly

the total wholesale and

postwar

looks

though there
and

period

from

good,

even

fairly

Korean

War

major defense program

con¬

tinues still.

was

While I would not at¬

tempt to claim undue credit for

flexible

monetary policy in con¬
tributing to this after 1950,1 think
than

coincidence that.

has

seen the
reemergence of flex¬
ible monetary policy.

Defines

Perhaps

consumer

Price

Stability

would

at this point to come
to

be
a

desirable

little closer V

defining price stability than has

been

done

far

this

paper.

Price

stability does not mean price
rigidity, nor does it mean that in¬

186% in constant dol¬ dividual

About 9/10 of the wholesale

price

50 BROAD STREET

the whole 60V

bility and relatively high growth

to look

Gross

expand by

Common Stock

per

that for

period. Just to give one more
contrast, the rate of price increase
way back in the peacetime years,
year

the postwar period of relative sta¬

find that whole¬
sale, prices have advanced 145%
and
consumer
prices
116%
in
those 24 years. This same period
through 1958,

saw

Offering Price—$1.00

about hall

it is

Assays Price Rise

price record over the long term.
Again it is necessary to use some
figures to make the points clear.
If we take the period from 1934

299,985 Shares

has been about ls/4% per year and
at
wholesale
IV3.%•' per
year—/?/

physical output simply is not the
would seem to indicate, at
best,
point to observe about this factor only measure of growth.
coincidence.
?
I have spent a good deal of time
of productivity is that, given to¬
The
record
also
seems
to
show
in this general discussion of eco¬
day's technology,
we
could be
that control of inflation is by no
nomic growth because it seems to
producing far more than we are
means
a
hopeless task. Particu¬
me important to consider and de¬
if we wanted to work as hard and
in the period from 1951
fine before we begin to discuss larly
as
long as we did 50 years ago.
the
proper
climate for growth. through early 1956, when there
What has happened
is that we

Let

Even

to price goods
out of reach of
point.
The standard of
those who do not share equally in
living
concept
embraces
more
the inflation and
thus weakens
than
mere
physical goods
and
markets; the social inequities of
services; it also embraces the con¬
rapid shifts in income patterns—
cept of enjoyment of those goods

World War II period than we

NEW ISSUE

Wars and the Korean War.

portant

what

hiving been sold, this advertisement appears

2^5%- per/
again it -

But

tle, if anything, in this record to

insatiable, it has

that

taught

that

All tlm stock

about

wants are

demand

What I have tried to show

been

1897-1913, was 2Vj%—the average
for the whole period. /.
;
, ? It seems to me that there is lit¬

effective

these

have taken about half of

country

goods and services. While
economics teaches us that man's

have

compounded.

has

compounded.

in Korea, the..: rate of
price increase at retail since 1948

that the consumption

here is

shows jumps, slips, and levels as
we would expect. But the striking

long-term picture shows
rate of growth in this

on.

Importance
real

the

But

Perhaps the two most important
things to note about economic
growth records are these: First,
average

Consumption's

curve,

and

increased

part by the Korean War.

the very

re-,

counting

cannot, nor do I think we ever
will, smooth out the growth curve
completely.

that

form

bigger defense estab¬

Stresses

the j-ca¬

both

adjustments

for
of

downs

and

the

some

turn to some of them.

some

annual

Actually,

the

part

year

not get
back to the real amount of output
we
produced in 1944 until 1951,

war.

large

years

the

because

hours

lishment and partly in improving' must be remembered that most of
education, roads, public health, the increase came in two World

make

real output,
year than 1944—

and

of shorter

reflected:

pressed inflation of the price con¬
trol years.
During that time, real"

partly in

give them. to emphasize
point: Growth does not
smoothly; its course shows

Growth

was

1944

the form

price rise of the whole period took
place between 1944 and 1947 and

these publicly, provided services—

because in dollar
higher in 1947

surprise

terms

form of
primarily
people—for individuals. Indi¬
viduals
have
preferred to take
some of the gains in productivity
our

jumps, slips, and levels. Tftere are
a number of reasons for this, arid /pensions for the aged, arid

worse.

produce

this major

inhibiting

Output in

side.

economy,

occur

pacity to produce and the capacity
to consume. We get physical out¬
put of goods and services by ap¬
We
tend
to
measure
Now, I must confess that I have
growth
plying human brains and muscle
mostly in terms of material or used this example to highlight to natural resources. As we im¬
real output of goods and services. some of the things I want to say
prove the efficiency of this human
Our best over-all economic meas¬ about growth.
While all of the
energy through better technology
statistics are correct, the example
ure is the well
and by developing capital, we in¬
can give an erroneous impression.
known Gross
crease
productivity. To develop
To begin with, taking 1934 as a
National
the capital we have to have sav¬
base year is bad.
We were just
Product,
ing—deferring consumption today
emerging from the depths of the so as to have more tomorrow.
which repreGreat Depression, when only 1933
6ents the dol¬
was a worse year than 1934.
Thus
lar
value
of
Uneven Growth
almost anything looks good when
all goods and
This
measured against 1934. In fact, if
process
simply is not a
cervices pro¬
we
smooth one. We seem to get our
go back five more years to
duced for con1929 and use it as a base, we cut
technological improvements in
sumption by
the percentage gain to 1947 almost
waves; we get changes in the rate
business, indi¬
in half, even though the period is of saving and of capital forma¬
viduals, gov¬
longer.
tion;
we even get changes in the
ernment, and
rate of population growth. We can
net
exports.
Ordinarily

sumption

for

output,* as noted earlier, actually :
dropped by Vs. Between 1951' and
1958
output declined.
The ex¬ supply of goods and services. We 1956, real output rose 18% while
pected rise in 1959 is well above are now taking far more in the wholesale price stayed level and'
average.
To go back to my first form of publicly provided services consumer prices increased about
illustration, 1947 through 1959, the than we used to—in large part in 41/2%. ; ■;.U";'
average growth rate is somewhat the form of a large defense estab¬
Taking a very long look at price
higher than the 3%
long-term lishment, but also in many other trends, shows that the rate of in-?
forms.
A good many people be¬ crease Of both consumer and /
trend.
Now this is a lot of figures to lieve.- that,, we
should
increase wholesale prices over the past 60■

irreconcilable conflicts between the objectives of growth,

points the requirements for promoting rather than
or limiting economic growth.

was

but

Federal Reserve Bank of Minneapolis
Minneapolis, Minnesota

Central banker terms it "economic
are

output

By FREDERICK L. DEMING*

President,

the

growth rate of about 8%
and of about 4%/in each
two years. -In 1954,

in 1951,

Climate lor Growth

Thursday, April 9, 1959

...

stant.

prices

Our

should

kind

stay

of market

con-

the

reflecting /

cross-effects

demand

and

supply., As changes in particular
demands and supplies
constantly
occur, this allocation process can¬
not take place
unless individual
prices have some flexibility. The

general level of prices, however
should stay
relatively stable. It
register moderate ups
and

can

downs

over reasonable
periods of
time without
detracting too much

from

the

general

stability. The
prices should
or

econ¬

omy calls for the price mechanism
to allocate resources
by

key
not

constantly in

beneficence
point
move

that

rapidly*

either direction

From this it would follow that

so-

Number 5836

Volume 189

The Commercial and Financial Chronicle

...

(1635)
called

creeping inflation of 3%
year-compounded over a long
period of time is ruled out as un¬
desirable, particularly \ in peace¬

savings but high enough to stimulate an adequate volume of savings.; We also want an. economic

time.

assurance

per

We have

far better record

distribution of income.

the

postwar

years,

other

V-One

conclusion

may

price behavior;

The experience
of the 1944-1947 period seems to
invalidate the claims advanced for
the efficacy of direct price con¬
trols. Memories of the black and

gray markets of those days and
the price behavior of the postcontrol period hardly argue that
this type of control can cope with

basic inflationary forces,
it

consonant with

were

terprise

economy.

have

V' I

said

even

free

en¬

that

the

torically, we have placed our dependenceiip.on ;ffee choice.of work
and

of the fruits of work

give

its dynamic quality.
havedepended essentially

our

economy

the interplay of demand and
supply and the price mechanism

Upon

allocate

resources
and goods
services.^ This mechanism has

and

natural

some

imperfections,

have ^contrived

and

other in¬

some

terferences, but by and large
has done its.job fairly well.

mand

places great
individual freedom, and
requires a high order of indi¬
on

vidual

responsibility
One ,big. reason

work;

■

often

inflation
as

and

whole,

economy needs wider
than
narrower
markets;

price

increases

simply

XT"'

not

Item: No matter how
ac^

responsi-

economic

and

Thus

wage

increases

time. ; We

economic

that

balance

productivity increases
the long run not
only raise

over

ra-

have

highly'self-suffid^il

some

room

learned

These

wheels, however, have to

tunes,

can

surpluses

blithely

even

will

to have the will

promote

policies

rather

than

limit growth.

real

stop talking
in

nonsense

growth and high employ¬

objectives consistent; we have to
make them so to provide a proper

inflationary

York Adds to Staff

; ;

ment. We not only can make these

operate

Sanv
that

wheels.

Clayton

Headed by Divisional Manager
so much
Farrell D.LoWe, the 20 mutual
contending fund sales
representatives of the
that there are irreconcilable con¬
flicts between the objectives of Metropolitan St. Louis unit will
now work out of
Clayton's Meragrowth, -high
employment, and mec
Building. The. Division had
price stability- The price of high
been located at 408 Olive Street
employment- is not inflation; the
in downtown St. Louis which will
cost of price stability is not unem¬
continue as national headquarters
ployment. Actually, the require¬
of both Slayton & Co. and Man¬
ment for real growth is high em¬
aged Funds.
ployment and price stability, and
the requirement for price
stability

n}eans balance in normaily good

mean

balance

and

We must

With/respect to fiscal policy, this

grow

economic

be allowed to operate
functionally
^ they are to serve their purposes.

WW*

need to do is

inhibit

individuals, the economy, is
likely to get out of balance from
time to

Sales Div. to

CLAYTON, Mo.—Slayton & Co.,
Inc., the nation's oldest mutual
fund retailing firm,
has opened
offices in Clayton, Mo. to house its
Metropolitan St. Louis Sales Divi¬
sion, Hilton H. Slayton, President,
announced April 6.

technology to

future

which

tioiial

in the form of public de¬

the

Slayton Co. Transfers

higher rate than in the past. What

grow

establishment, and

and

resources

widen markets.

surpass

(

•

Special to The Financial.Chronicle)

SAN

FRANCISCO, Calif.—

Harry S. Connelly, Jr. and Jess
J. France, Jr. have been added to

climate for growth.

the staff of York &

Sri

times they are distinctly

Perverse, Now With

gomery

Co., 235 Mont¬
members of the

Street,

Kidder, Peabody Pacific Coast Stock
policy,
Exchange. Mr.
that we niav^ chdd&e either highc*fects are, felt through reT :-Tspeeial to The Financial Chronicle)
France was previously with Har¬
"SAN FRANCISCO, Calif.—
employment or price stability as strictl"S credit and growth in the
ris, Upham & Co.
a i^?^^)al;Actually we have ^6
11^one^r suPP^y in inflationary pe- Brantley M. Johnson is now with
such choice.'II we hattS coifttant -rtod.^.trevergtng.thcge jcttotis Kidder, Peabody & Co., 140 Mont¬
With McDonnell & Co.
cost inflation, we cannot achieve
^ periods. No one gomery Street. He was formerly
with Reynolds & Co.
(Special to The Financial Chronicle)
high employment. ^
^v-r-/^^itici^es:
easy money policy,

thi& factor It'hasbfeerFlie?§d:m0»etary

Item: As noted
services

above,,goods,ana

but there.seems to be some lack
:0£ understanding that a restrictive

produced;have to ^e a^" policy to be effective has to

sorbed

through private or public strict
flemand.' Easy acceptance ofcost V ; •
increases on the assumption that v. '*
:

SAN

Hooker &

re-

SAN
'•

can

of price
to rude

be passed

in.the form £$■To-coikilude, let me summarize
whafH- 'have tried to point out.

there

the"1 seller

natural

be-

limits to

•

>•

affili¬

now

Co.

•

■

In¬

•

• •

f
K

FRANCISCO,
Calif.—
•
'

■

associated with Hooker & Fay, 221

We want a growing economy in
this country ;_ in fact, we have to

Nesbitt is
McDonnell

corporated, Russ Building.

Sherwood B. Marshall has become

increases quite often leads
shocks

<•

with

ated

-•

they

Fay Adds

Special to The Financial Chronicle)

FRANCISCO, Calif.—

Thomas R.

Summary
'

Joins Estate Sees,

!
a

(Special to The Financial Chronicle)

Montgomery Street, members of
DENVER, Colo. — Alvin K.
have a growing economy to pro- the New York and Pacific Coast Nierman, Vernon H. Noe and
?"marginal duee a high level of employment Stock
Exchanges. He was formerly William D. Waddicar have joined
utility"; since price increases are and; to produce the volume : of
with
Stone
&
YoUngberg
and the staff of Estate Securities Cor¬
not even, some goods simply get
^goods and services we heed for a
priced out of markets because -more abundant life, for an ade- Walter C. Gorey Co.
poration, 1600 Ogden Street.
cause

are

this process. One limit comes from

it ^ what

Our kind of system

yalqe

quite

high employment level-if'
how to minimize the adverse efoutput, public or private, of that fec|s Qf
such imbalance through
employment is produced.,at costs so-called
built-in stabilizers, and
too high to be absorbed byj the
we
have : relied
on
fiscal
and
people either through private de¬
monetary policy to act as general

have

to keep in mind that we are
talking about growth in our kind
of political economy with its em¬
phasis on individual freedom. His¬

price

income

iug

ately

limit
that

growing

rather

produces a high level of
employment. But no policy, public
or private, can produce a contmu-

States

to mind. Is the record
good enough? Can it be improved?
In other words, do we have or can
we attain the proper climate for
continued greater growth? - V *
f Here'it^s^fhighiM

economy

much of the rest of this century to
date. But'two questions immedi¬
come

for the host of public services we
demand.
We have the basis for
such an economy; we have the

Another

tends to limit markets

Item. A successful- and
growing

mand.,

postwar
period as a whole looks fairly
good inlerms of growth and price
stability. J5o it does relative to

quale defense

able.

accompanies

that

drawn from the statistical record

that

than

excluding Korea.

cheaper substitutes become availinaldistribution

environment that gives reasonable

savings will not be
eroded by price inflation.
Furthermore, we need profit rates
high enough to induce investment
but not so high as to create mal-

(

economists

call

to make it
why some

people view the ostensibly favor¬
able postwar record with pessi¬
mism is that they believe
they see
some decline in the sense of indi¬

vidual responsibility.:,, As

mat¬

ter of fact, a good many thought¬
ful Americans recently have been

This advertisement is- neither

an
offer to sell nor a solicitation of an offer to buy any of these securities. The' offering is made only by tin
Prospectus; This is published on behalf of only such of the undersigned as are qualified to act
»
as dealers in securities in the respective .States. * .V V." *
f

•

\eiv Issue '

■

;'■

;

•

April1959

writing "and speaking of the need
for all of

to raffirm

the moral

values that have made this

try strong. They call for
cation of individual

440,000 Shares

coun¬

rededi-

responsibility

and a recognition that our world
position requires greater rather

than

lesser

exercise

that'

Gas T ransmission

re¬

sponsibility.
There

are

life

can

of Ameri¬

some areas

Cumulative Convertible Second Preferred Stock

which

require more re¬
thinking jof goals and responsibili¬
ties

and

effort

(Par Value

achieve'

#100 Per Share)

Convertible into Common Stock through

those goals than do other

April 1, 1969

areas. In
the field of economics, the course

seems

reasonably clear and, in

sense,
involves no great
What it does involve is

effort.
a

Price

clear

recognition of economic facts, the
exercise -of
responsibility and in¬
telligence * in pursuing economic

#100

Plus accrued, dividends
•

per

Share
1.(

from the date of issuance

objectives, and the definite desire
to
keep these objectives fairly
consistent with each other.. To
say
this in another way, What is re¬
quired on the part of every one
is to think of tomorrow as well .as

■

Copies of the Prospectus may be obtainedfrom any of the under—
signed who are qualified to act as dealers in the respective States.

today when striving for .economic.
gain

t-o -recognize!

and

course

economic

that 'the

development

simply is mot likely to be
fectly, smooth process.

Stone & Webster Securities

per¬

White, Weld & Co.

Corporation

Let me translate this into a few
specific points of illustration:
Item:

all

know

that

eco¬

nomic

growth depends in large
part upon growing capital invest-

merit

and

improved

technology.

These in turn depend
largely upon
-the volume of
saving and upon the
return

investment.

While

the

motives for
are

saving and investment
complex, one powerful stimur

lant ia rate of return.
Thus, in a
free economy, low interest rates
and

1owt

mixed

profit rates

blessings.

normally
enough

•

are

What

interest

to* encourage

Eastman Dillon, Union Securities & Co.

Requires

The First Boston Corporation

Blyth & Co., Inc.

Specifies What Growth

j„'

not
we

rates

the

un¬

want
low

use

Goldman, Sachs & Co.

Glore, Forean & Co. i

Harriman Ripley & Co.
Incorporated-

,
.

Kidder, Peabody & Co.

A. G. Becker & Co.
t

Moseley & Co.

Drexel & Co.
*

W. E. Hutton & Co.

Dean Witter & Co.

Smith, Barney & Co.

Clark, Dodge & Co.

Incorporated

Hornblower & Weeks
F. S.

Incorporated

Merrill Lynch, Pierce, Fenner & Smith

Lazard Freres & Co.

Paine, Webber, Jackson & Curtis

...

W. C. Langley & Co.

Salomon Bros. & Hutzler

Hemphill, Noyes & Co.
....

[Lee Higginson Corporation
Wertheim & Co.

The Commercial and Financial Chronicle

(1636)

the

Has Inflation Been

Brought

Under Control Here and
Exchange head is skeptical that the slow inflationary

and

most

deals

the

soar,
see

pensioner

their security

the man of thrift
savings melt away; the
white collar worker, the minister
and the teacher see their stand¬

undermined,
his

sees

spiral

Western allies.
In indicting inflation as a dangerous threat to us and our allies,
Mr. McCormick prescribes a three-point program to stop infla¬
tion and also recommends a huge dose of "intelligent self
denial" and full cooperation of both management and labor.
Turning to the importance of wider distribution of capital
ownership, the American Stock Exchange President calls for
reasonable prudence in market participation and warns that
stocks are not a guaranteed hedge against inflation.
brought under control by

prices

the widow

and

President, American Stock Exchange, New York City

has been

the cost of living. And

rise with
when

McCORMICK*

By EDWARD T.

Rather,

poor.

cruelly with those who can least
protect
themselves.
It
strikes
hardest those millions of our citi¬
zens whose incomes do not quickly

our

ards of

reduced

the

our

value

1939 dollar

one-half

the

infla¬
tion, we must do
three things,
first, stop the wage price spiral,
secondly, we must save and in¬
vest, and, third, we must insist
that the Federal and state govern¬
exercise

ments

restraint

and

re¬

War

The

the

l'.r

o m

curred

1950, after Korea, there

ment. In
was

in¬

Govern¬

renewed rise through 1952.

After

of stability in

some measure

and

1953

"creeping
1957

took

man

hour

'1954,
the
so-called
inflation" of 1956 and
when

over

have

waste

lose

man

enough, many

strangely
in

street

the

not

con¬

cerned about inflation. He is often
more

troubled

deflation.

prospect
reaction

his

And

of
is

typified by those who say, "Present
higher
prices
of
goods
don't

output per

bother

much.

too

rather

I'd

fronts.
Now that the business recession

has

been

licked, and I sincerely
believe it has been, we are looking
forward
to
renewed
prosperity.
But it is very likely that this year
will bring expanding demands for
increases.

wage

recent

report

by the First National City Bank of
New

York

indicates

have them and the income to pay

lion workers

million

4.4

are

mil¬

that 2.9

scheduled under
wage

1959, "while another
are
covered by cost-

of-living
escalator
clauses
and
that nearly half of the major wage
contracts tabulated by the United
States Department of Labor ex¬
pire this year including the steel

industry which frequently sets the
pattern.

has been brought under
by us and our Western
allies, I, for one, do not so believe,
but am of the
opinion that it
control

will have

our

aptly

serious dislocation

economy.

President

said

Eisenhower

his

State

the

Union message:
♦An address

the

8th

by Mr. McCormick before

Annual

Institute

for

Maine

"Inflation is not

In¬

dustry, Colby College, Waterville, Maine.

Bobin Hood,

taking from the rich to give to

This report further notes that on

Putting a stop to the increas¬
ingly dangerous wage price spiral

an
offer to sell nor a
of offers to buy any of these securities.
offer is made by the Offering Circular.

150,000 Shares

GREAT LAKES
NATURAL GAS COMPANY, INC.
Common Stock

Great Lakes Natural Gas

Company, Inc. is a Pennsylvania corpora¬
engaged in the business of acquiring oil and gas leases, sinking
operating oil and gas wells in the state of Pennsylvania.

JOHN

and a keeping of the eye
long-term personal welfare. On
the wage price spiral problem you
may be interested to know that
during the period 1939 to 1956,
output per man hour in the steel

industry rose 64%". But during the
same period, average hourly earn¬
ings, plus fringe benefits, rose
211%, resulting in an increase in
unit labor cost during that period
the increase in productivity
something has to give and it is
usually the price to the consumer
of the goods produced. Our rosy
prospects
for
the
future
are
certainly going to be retarded if
dream
child
products
priced out of the market.

BO 9-6676

Please send

Natural

Company, Inc. Offering Circular.

Name,

Gas

CO.

New York 4, N. Y.

Gentlemen:

copy

are

of the Great Lakes

(Please Print)

this

Zone.

Stale.

may

know, the

made

average

out of the market.

continuing fight against the

can

with

but I trust it is
all

one

which

participate in waging

reasonable

measure

lew

made

our

$38,000. While the greater
proportion of the funds needed to
make this capital investment has
been
obtained
by
corporations
from retained earnings and
re¬
serves
for
depreciation, an in¬
creasingly larger part of such
funds

must

from the

come

future

years

savings of individuals.

Wider-Spreading Stock
Ownership
As

President

the

American

Exchange which has played
important role in developing

this

diversity of ownership in our
corporate enterprises, I am prob¬
ably more L acutely aware than
most people of the importance of
greater and more wide - spread
stockholder participation in our
industry. We at the
Exchange
have for years been preaching the
doctrine of saving and sound in¬

the
the
be

public watchword. It should
noted, as well, that investment

suc¬

stocks

common

anteed

Many
will

against

common

stocks

down

inflation.

that

after

buys

thorough analysis of the prospects
a particular
corporation, he will
be doing himself, the
corporation,
and

our

can

economy

less

service,

concerned

temporary

market

Which

bound

are

less

the

fluctuations
to

recur

reiterate

conviction that inflation, un¬
it can be brought to a halt
slowed

and

with

almost every security.
In summation let me

the

to:

--smallest

crawls, presents real danger to the
economic stability of the nation
and to the personal fortunes and
future, of each of us. Each of us

then,

whether he

unite

than

and

ment, labor

guar¬

though our
to be plagued

investor

inflation.
have

even

country continues
with

is not

hedge

group of

by an ever-broadening
individuals. True enough,
we have a selfish interest in
this,
for it is good for our business. But

analysis,

purchase aof value, should be

vestment

the

govern¬

management, must

exercise

of self

dis¬

cipline and self restraint to keep
this

economic

within

menace

realize

fully, bounds. More penny pinching by
a purely objective point of
government,
more
circumspect
view, that a substantial increase wage demands by labor and price
we

from

in the present number of investors

demands
by
management,
and
more
saving by individuals, can
only benefit such win the day.
shareholders in American industry
but is a prerequisite to the ability
Two With Inv. Service
of American industry to bring to
(Special to The Financial Chronicle)
our
growing population, in the
DENVER, Colo.—Henry H. Jenyears to come, a higher standard
son and Stanley A. Smith are now
of living and a participation in
connected with Investment
Ser¬
and enjoyment of the products of
vice Company, 916 Broadway.
a
technological
revolution
of
and in the amount of their invest¬

will

which

not

we are now

seeing only the

bare beginnings.

Now With Walston Co.

Public

(Special to The Financial Chronicle)
participation in the mar¬
ket has been expanding consider¬
DENVER, Colo. — Franklin G.
ably in recent years and particu¬ Miller is
now
associated
with
larly in the past several months. Walston & Co., Inc., Denver U. S.

Whether

these

individuals

are

National

Center. He was previ¬
ously with J. A. Hogle & Co.

stocks

as a hedge against
both, it is difficult to
tell. Indications are, in any event,

Joins John L. Eisner

the

this

number

stockholders

country has passed the 10

(Special to The Financial Chronicle)

LAWRENCEVILLE,
W.

Tolen

has

111.—Larry

become

affiliated

firm with John L. Eisner, Gee Build¬
to be ing.

million mark. One brokerage

reported at year end
adding new accounts at the rate

was

950
As

H. C.

week.

Speer Adds

might appreciate, it is
(Special to The Financial Chronicle)
not
only the • wealthy or near
CHICAGO, 111. — Weimar G.
wealthy who have been purchas¬ Preschern has been added to the
ing stocks. This group of millions staff of H. C. Speer & Sons Com¬
investors is composed principally
pany, 135 South La Salle Street.
of the working man, the whiteyou

collar

worker

and

the

so-called

middle

income class. A recent
study by the New York Stock Ex¬
change showed that persons with

With Burton J.
(

Vincent

Special to The Financial Chronicle)

CHICAGO, 111. — Richard H.
Wierenga is now with Burton J.
Vincent
& Co., 105 South La Salle
68.1% of all trans¬
actions by public individuals.
Street. He was previously with
This
public
participation
is Smith, Barney & Co.
further evidenced by the growth
incomes of less than $25,000 a year

accounted for

of the Mutual Funds. In 1940 there

only 68 mutual funds with
$448 million in assets. Today 149
funds have about $12.75 billion in
assets, with the greater part in
stocks.

further

$12 billion in
by other institu¬
investors, such as insurance
companies and pension funds. A
significant indication of public in¬
stocks

held

tional

year

short, isn't labor,
in continuing to press demands for
wage
increases not tied to in¬
creased production, in danger of
pricing a substantial part of its

Twenties,

the

giants of today. A
the grade. Selection of

utilities

vestor

the

investments after careful

caused and will be caused for

easy one

industry

largest
manufacturing companies is about
$20,000 per employee; for rail¬
roads the figure is $32,000 and for

reason?

forces of inflation will not be

City.

many of these are in a
comparable to that of the

when hundreds began their strug¬

this

members

that

radio

gle to be

now

The

ber

state

New

were

country
because, despite tariffs and duties,
they
still
undersell
our
own
goods? How much employment is

own

Address.,

volume

no one

market

plant, equipment and tools for inT

that

man

blindly,

dustrial growth.

management and labor. By intelli¬
gent self denial I mean a dis¬
regard
of the
immediate
"fast

sold

CRAVIN

invention, research

and development and provide the

inflation,

foreign markets are
now closed to us because our price
tags are too high?
How many
foreign products are imported and

UNDERWRITER

romantic space age name. Remem¬

and

common

How many

Offering Circular Upon Request

in¬

savers

provide the capir

by the expected demand this year

our

Price $2 Per Share

56 Beaver Street

foster

will require intelligent self denial
and the full cooperation of both

ceed

(Par Value 25c)

and

tal

can

Which promises to be accentuated

of 89%. When wage increases ex¬

tion

who

should

expansion must

economy

motivated by the promising busi¬
ness outlook
or whether they see

buck"

This advertisement is neither
solicitation

This

continued

vestors

ment

were

spiral

Stock

for them than return to the period Jan. 20 the United Steel workers
again ex¬ of
low
priced
goods
when
1 advertised in, of all places, the
ceeded by
increases in cost of couldn't earn a dime to
buy them." Wall Street Journal their desire
manufacturing.
Strangely,
even
for a 195,9 model contract provid¬
The practical personal appeal of
during the 1957-58 business reces¬
ing "$1 billion in new money" for
such reasoning is understandable
sion,
consumer
and
wholesale
steelworkers."
Which
but its ultimate economic effect "1,250,000
price
indexes
continued
their
billion dollars would be roughly
will be disastrous.
gradual rise.
equivalent to three quarters of the
You and I need no one to tell
after-tax earnings of the iron and
Doubts Inflation Has Been
us what inflation is or what it can
steel industry in 1957 and more
Controlled
do. Wage payments plus credit are
than the industry's 1958 earnings.
While there is belief in some outrunning actual production, and
as long as they continue to do so,
Intelligent Self-Denial
quarters that this slow inflationary

costs

its

lor

Thursday. April 9, 1959

buy
securities
should simply buy
averages
or
buy simply
because the price of a security has
been rising—nor should he buy a
security solely because it has a

Ours is

both

increases

deficits

Federal

the

existing contracts to receive

Again

wartime

extensive

only against waste, because if

bounds.
T. McCormick

but

in a continuing
struggle to keep inflation within
unite

agement

reason

our

in government, labor and man¬

1948

1941

with

long-term
economic
survival it is essential that all of

oc¬

period

war

battle

line

production

—a

greater
of this

curred

trade

the world at stake.
For

inflation

growing and

with those behind the iron curtain

one-third.

part

major friends now

our

international

vital

than

and

World1

after

the slowest of

enjoy, but also the

dollar

the

unless kill us as fast as a Soviet "A" or
positive steps are taken to stop "H" bomb, so I plead not against
this inflationary trend or at least essential
military
expenditures
that,

believe

stand to lose not only
such domestic economic stability

and

from anything but essential
expenditures. But let me make
one thing clear—inflation will not

fight which every
share in by con¬

principals
saving and sound investment.
a capitalistic
economy and

As you

the problem of

To attack

great and real danger
I

economy.

can

investment

future stability of our joint

to the

crawls,

value.

to slow its creep to

than

presents

two decades

past

tinued adherence to the

living dragged down."

Submits Three-Point Program

frain

and
more, we have all witnessed and
felt the increasing impact on our
economy of an inflation that has
the

For

cess.

individual

...

demand

was

shown

last

Hardy Branch

Hardy & Co.,

members of the

Stock Exchange, has
branch office at 543
Madison Avenue, New York City,
with Cyrus S. Fisher as resident

New

York

opened

partner in charge.

Spear, Leeds Branch
PERTH

AMBOY, N. J.—Spear,
Leeds
Kellogg has opened a
which
originally offered
branch at 315 State Street under
$37.5 million in shares, raised the
the
management
of Ralph
W.
offering to $198 million, and when
Salisbury.
the Lazard Freres' Fund which,
too, originally aimed at $37.5 mil¬
With L. A. Caunter
lion was boosted to $127.5 million.
when

the

Lehman

Bros.

Fund,

This

(Special to The Financial Chronicle)

increasing public participa¬

tion in the market is good for the
economy so

long

the investing

is done with reasonable prudence.

CLEVELAND,
Fontana is
ter

now

& Co., Park

Ohio

—

Peter

with L. A. Caun¬

Building.

Number 5836

Volume 189

The Commercial and Financial Chronicle

...

(1637)

through

Brighter Economic Outlook
May be at Hand for Cotton
By M. K. IIORNE, JR.*
Economist, National

Chief

our

textile
our

exports

textile im¬

ports have increased, so that the
net export market for U. S. yarn
cloth

and

has- gone down from
million bales to less

well

over

than

300,000 bales.

Our

Cotton Council of America

1958

have declined and

most

serious

direct

and

competitors for the domestic

Memphis, Tenn.

ket

mar¬

combined

with

technological de¬
as tubeless tires
reducing
the
need
for
chafer
fabric and bulk handling reducing
the need for bags. This is a com¬
mon problem for all textiles.
Second, two uses which com¬
prised nearly half of our entire
industrial market in
1957
(bags

bining homefurnishings with ap¬
parel, if we discount the recent
recession, we find that the over¬
all trend of the two is upward and
that we have a great chance to
make the upward trend continue.
And this rising sector of our mar¬
ket now comprises three-fourths
of total cotton consumption in the

velopments such

United

be summarized this way:

and tires) were in third and sixth
(1) foreign textiles, (2) the non- places respectively in 1958. Our
textile materials like paper and industrial market today is a re¬
plastic
which
are
going
into markably diversified one.
assessment of the outlook for this commodity is good.
And
He
textile uses, (3) the technological
third, in some of these
changes which are reducing the uses—a minority of them still—we
draws a critically sharp picture of the favorable and unfavor¬
need for some textiles, (4) rayon have been making net gains in
able past, present and future trends in both the export and
and
acetate, and
(5) the non- recent years.
domestic markets. Some of the encouraging factors include a
cellulosic fibers such as nylon and
decline in the critical area of losses in industrial usage and
Pleads for More Research
Dacron. When we talk about being
competitive for the U. S. market,
possibility that a lower price in cotton could give it an added
As long as we lag so far behind
we have to think about the impact
our
competitors in research, the
margin of competitive strength. The author warns that the
of
all these
things on all our
gradual erosion of these industrial
vulnerable decline in industrial demand can only be tackled
markets.
markets is likely to continue. But
Net
textile
exports
by drastically improving the research effort.
comprise it very clear that the over-all rate
thfi smallest sector of the four, of our
losses in this part of the
This will be a brief round-up of keep stocks low at the end of the but it has declined
enough to keep market has declined in recent
the facts on the domestic and ex¬ current crop year because of the the overall trend of our domestic
years.
With a lower price next
port markets for American cotton. lower support prices announced market from rising. The decline season we should have at least a
cotton, effective next continues. Last year, again, our
-Consumption by the spinning for raw
good chance to stop the net loss
season.
mills
of
this
textile exports declined and our and
begin scoring modest gains.
But the mills' cloth inventory
country
textile
imports
increased.
Ob¬ In the past decade our big losses
declined from
policies will not be the qnly thing, viously this competition is largely in the industrial
uses have neu¬
or
the main thing,
9.2 million
determining with
textile s
manufactured tralized our big gains in the ap¬
can

The year

the

1956,

Aug.

million

8.6

next
and to

the
season

8.0 million last

season.

consumption
the

for

re¬

mainder
the

present

next August
the

rate

Jr.

Home,

down

tinues
to

con¬

season

past

1 at the average
several months,

with

just the normal amount of
change, it will total 8*4
million
bales
this
year.
If the

seasonal

upward rate of recent months con¬

tinues, the total may be substan¬
tially above 8*4 million.
Our
exports
of
raw
cotton
totaled 7.6 million bales in 1956-57,
"

the Council's

last season, and

5.7

Foreign Trade Division now feels
that a minimum expectation for
the

current

season

somewhere

can't

ignore the
cline in the off-take of
from

million bales

than- 16

steep de¬
our cotton

before last to perhaps

season

caused it?

What does it

less

What

than 12 million this season.

for

mean

the future?
We'll go later into the meaning

that

recovery

last

April,

the

modest

have had since

following

long

the

recession

of the preceding two
is not all the recovery that
are going to get.

years,
we

around 3.4 million bales.

wear

that

and

domestic

cotton
at

uses

trend

performance

across

the

compare

cotton

period

recession

one

the bottom

year

find that rayon consump¬

the United
States, ex¬
pressed in cotton equivalents, de¬
clined fully as much as cotton
consumption. Percentagewise
rayon declined slightly more than
tion

cotton.
'•

•

'I"•

■

•

••.

Reduced Rayon Threat

its

stead it has had
tion and

market contrac¬

distinctly rising trend
in cost of production.' The story
comes out sharply when we look
at the combined net profits of
three
great companies engaged
primarily in making rayon.
In
earlier recessions they managed to
a

making pretty healthy prof¬
its, but in this latest one their
profits evaporated. For the first

go on

pipe

month^fof 1958 these three
dbhibined

companies
about

the

were
just
break-even point.

This is something new under the
sun.

This
that

time

year

ago

cost

the

mills.

We have

that

difference

mill

cost

or a

products
are
shirts,
sheets,

slightly, and under the new
legislation affecting the price of
cotton, rayon's advantage may be
reduced substantially in the sea¬
son

ahead. This tremendous threat

Continued

page

solicitation oj an ojjer to buy securities.

many

Council's

Market

April 8, 1959

New Issue

staff

Research

decline, but first
let's look deeper into the domestic

does this

market.

period

the

export

from

The net

There

was

decline

mill

long and painful
monthly rate of

the

cotton

consumption,

lasting

from the first of 1956 to the

of.

1958.

The

bottom

spring
last

came

April, and there was an increase
in the seasonally adjusted rate of
consumption
for
every
month
from
April through November.
December

saw

reversal

1947

trend

has been

Examines Domestic Market

through

1958.

these

years

across

sideways

or per¬

one,

haps slightly downward. We begin
to

the

see

domestic
examine
to

behavior

real

market, however, when
some

mention

of its parts.

the

in this

Encouraging

Domestic

The first

Is cotton

one

from

Signs

million

2.7

downs

about
the

shut¬

extended

periods.
as this
upward trend of the cycle.
over

holiday

rose

1947 to 4 million in 1956.

flected

mild

reversals

in any
Is this recovery trend likely to
continue upward for a while? On

of our

ward

that

across

these 11 years.
I will mention the house¬

review

some

will

basic

only

try

The

been

Mills'

low

for

facts:

our

Earnings

number

years, and especially in 1958—too
low from the standpoint of every¬
one

who wants to

sumption

see

increased.

cotton

The

con¬

mills

plagued all through their
long recession by excessive stocks
of cloth. They naturally may be
very cautious now about building
were

those stocks back up

they have
*An

strong

1958, but the basic trend
domestic clothing market is
a

net

amount

undersigned {who

may be obtained jrom such oj the
the underwriters named in the prospectus) as may

Copies oj the prospectus

these securities under

are among

legally ojjcr

applicable securities laws.

43%

earnings of the mills have
too

Price 992/2%

clearly and strongly upward—up¬

hold
Low

•-

during

1957 and

•

The

We always get pauses such

question

plus accrued interest from April 1, 1959

bales

the

been made

r-M'

clothing.

This

had

Pipe Line Bonds, 4%% Series due 1979

com¬

recession in the clothing business
at the cutting up stage was re¬

which

First Mortgage

ponents of our domestic market.

upward trend, but no one was
particularly surprised in view of
announcements

Corporation

I want

main

four

Texas Eastern Transmission

our

look inside this total trend and

$45,000,000

job. We have compiled a
each
year
during the

for

total

again. And
incentive to

address

by Dr. Home before the
Cotton
Council's
Annual
Meeting, At¬
lanta, Ga^

uses

ward

trend

This

cotton.

market had

across

very

part of
mild up¬

the

1947-1958

period.
In
furnishings

apparel and ^homecombined,
our
do¬
mestic market grew substantially.

Where, then, did we have the off¬
setting declines in our domestic
market which resulted in

Dillon, Read & Co. Inc.

Kuhn, Loeb & Co.

The First Boston Corporation

Blyth & Co., Fhc.

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

failure

Goldman, Sachs&Co. HarrimanRipley & Co. Kidder, Peabody&Co.

of the total to increase?

LazardFreres&Co.

Incorporated

Area

These

Marked

losses

of oqjr market,
for cotton, and

were

Decline

Lehman Brothers

the industrial uses
the net exports of

Stone & Webster Securities Corporation

cotjfcm yarn and cloth.
Across

the

years

from

Merrill Lynch, Pierce, Fenner & Smith

Smith, Barney & Co.

Incorporated

in two parts

1947
.-ho-."

down

fabrics.

ojjcr oj securities for sate

been

living under a tremendous threat
that, with this big price advan¬
tage, rayon would break through
into some of our great clothing
and
household
markets.
Today

As
for
homefurnishings,
our
First, we have much competi¬
here from other fibers, but competitive gains and losses last
by and large we have an equally year were about a stand-off. We
serious threat from plastics, paper, have some big threats but also
and other non-textile materials, some big opportunities here. Com¬

said

staple fiber was gen¬
from six to 10 cents a

rayon

erally
pound cheaper than cotton in net

tion

This announcement is not

'■

rayon industry went into
this four-year period with great
plans for market expansion. In¬

the point where

the end
manufactured —
bags,
etc.
The

;

The

our

more
clearly
together the amounts

consumed

and

of time
to the

market

when we add
of

basic

the

see

cotton they spin up. abroad. In
addition, our imports of parel uses. If'we can stop the
thing will be how much textiles made up into end products former trend and continue the
cloth they sell. And we can point have been
increasing substantially latter one, we can see our do¬
to some strong forces that should in recent
years.
They increased mestic market begin a period of
help them sell more of it in the again last year.
very substantial growth.
period ahead. One is the rise in
Turning now to our industrial
And what about our apparel and
general business conditions of the uses, we find that here is where
household uses?
If we can just
country,
which
is
continuing. we had our biggest losses. What
say one thing about our record
Another is the strength that retail uses are we
talking about when of the past year, it should be on
clothing sales have been showing. we say "industrial"? During 1958
this subject: resin treated cottons
Another
is
the
performance of the biggest, in order of size, were:
versus synthetic blends.
inventories.
Mill
inventories
of
shoes, industrial sewing thread,
One year ago we noted that in
cloth have been declining since
bags, automobile linings and up¬ 1957 the
blends of non-cellulosic
last May. Inventories all along the
holstery, medical uses, tire cord fibres had made
important gains
line, from the mill to the retail and fabric, machinery belts, cord¬
upon all-cotton fabrics in the ap¬
counter, are considered to be in age and twine, electrical insula¬
parel field. Today we can note,
pretty healthy shape and can no tion,
laundry
uses,
tarpaulins, just as factually, that in 1958 the
longer be the depressing influence awnings,
industrial
hose,
and tide of battle turned in favor of
which they were in the
recent tents.
all-cottons. Cotton made genuine
past.
Glancing at this list, we can
competitive gains throughout the
All this suggests that the pull of
note three things:
apparel market, and it made them
purchases by the final consumers
primarily through the wash-andwill be felt more strongly at the Problems Common to All Textiles
level

was

one.

from

much

mill

just past

latest

rayon

The main

ended

the

how

the

bales

States.

The year 1954 was the bottom of
the next-to-last textile recession.

Despite last year's admittedly sharp decline in cotton consump¬
tion
and other discouraging factors, Dr. Home's overall

season

White, Weld & Co.

Dean Witter & Co.

The Corrimercial and Financial Chronicle

(1638)

Economic Trends Affecting
By DR. ROBERT R.

and

natural

matic

population;

and the

structure;

use

These

resources.

Real

The

from

estate's
overall future and anticipates southwest's growth rate will
exceed the nation's. Adding together other trends he sees GNP
increasing 7% over 1958 to $466 billion for 1959. Expressing
preference for a balanced economic growth pattern to a steeper
or as steep a trend line as in Russia, Prof. Dockson contends
we
possess the know-kow to prevent a disastrous depression as
well as runaway depression. He adds, however, we will be slow
in applying our knowledge and, thus, our total output will not
always be at the peak nor will prices remain steady.
bank

California

economist

While it is important to analyze

optimistic about real

strive

crease

higher

and; higher

their

growth.

estimated

economic

because

democracy,

business

our

but

flation

capabilities of

will

stand¬

slow

At the

standard in the world and, at the

present, we
are
engaged

time, a degree of freedom
unequalled in any other country.

the type of
economic en¬

vironment

which

are

apt to be op¬
erating over
the

ten

years.

five,

contro-

versy

whether

Russia's

put

Robert

year

upon

communities

fast

certain

should

combatting

the

though such might mean a
relatively high level of unemploy¬
even

views

Both

system.

;

these

inappropriate

are

our

We Possess the Know-How

V We

have learned a great deal
about the operations of'our econ¬
omy since the end of World War
II, and it is possible for us to
maintain a relatively rapid rate
of growth without suffering from
either a high unemployment rate
or runaway inflation.
In order to
accomplish this, it is essential that
everyone
recognizes
that
some
fluctuations

must occur if

business

are

prise

system.

Also,

shows that prices
*An

before

address
the

Annual

are

Periods

output.

history

balanced

economic

pattern

is far more im¬
portant than a trend line as steep
or steeper than Russia's.
Because

such

ber

real

estate

activities,

nearly

economic force has

ship

embraces

large and diversified

every

to it. Of major importance
population trends and family
trend and
dis¬

finance

real

research

estate

and

March

ties of various

appears as a matter

transactions;

•

development

governmental

of those shares having been sold, this

announcement

' "

ERDMAN, SMOCK, HOSLEY & REED,

inc.

100,000 Shares of Class "A" Common Stock
(IOC Par Value)

ex¬

activi¬

kinds; the mobility

of record only.

NEW ISSUE

•

num¬

relation¬

some

•

■

and

216
1975,

various
eral

of general

es¬

busi¬

Although there

measures

are

have of gen¬

National

Product, the total
the goods and serv¬

value of all
.

Activity

affecting real

business, probably the best is

Gross

side,

are

live

than currently

people

Great Britain

combined.

Canada

and

increase'

this

magnitude cannot help but

ices produced within the economy
a

mean

find

consumers

much

than

quence,

main

the

increase

the

automobile

1959.
nies

themselves

financial position
year
ago.
As a conse¬
their purchases should re¬
all

unsuccessful

are

during
compa¬

selling

a/good look at their industry. The
increase in
t ever-expanding
market
for
an
one million per year between-now/ ever
larger and more expensive
and 1970 and by 1975, they could * car is ,a market condition no
well reach the annual rate of 1.5; longer with us. I believe a smaller
t

might expect

an annual net
households of 'about

fig-' share of total consumer expendi¬
to housing needs • and; then, tures will .be going for automo¬
to them the dwelling units', biles and, "thus, more funds will
will be required to replace, be available for housing, other

million,ures

add
that

those

As.

that

relate

become

these

outmoded, de-%

durables and recreation.

lies

have

second

recreational

reasonable

and

at the

for; and equipment.

seems'

that

new

be needed -at

rate of

annual

1970

expect

dwelling units will
the

home

purposes,

1.5

million

rate of 2

million

by 1975.
A

population

require

and

industrial

busi¬

will need to increase their
facilities

organizations
to

anything'

than housing needs.

Commercial
nesses

growth

amount forecast will

the

and

will

even

citizens.

new

Most of

the de¬

and

goods desired by
Hospitals and

non¬

our new

during

these

1959

expenditures

the

increase

Income

replace

plant and equipment
to

expand

capacitv

worn-

are

well
very

apt to increase at significant rates.
As they do, more land for indus¬
and

older,

rundown
areas
to be redeveloped.

need

will

and

•

-I

•

in Units of
Ten Shares of Class "A" Common Stock

units

authorized

last

increase

dollar

total

and

insure

year

far this year practically

expendi¬

tures of about 10% above the 1958

level.

However,

is anticipated

that,by the third quarter and
this

the

fourth

cer¬

quarter

year," the

level
more

Offering Price $30 Per
-

Unit

Underwriter

nant

Total

the

short

real

WHirchall 4-7630

survey

igan bears

Teletype: NY 1-4381

estate

dicates

fi¬

consumer

conducted by the Research

Center of the

York 4, N. Y.

current

activity than
our
increasing population. From
all indications, it appears that the
rest of 1959 will witness a steady
rise in total personal income. The
recent

New

the

of income probably plays a
important role as a determi¬

nances

56 Beaver Street

run,

University of Mich¬

this

that

out

and

also

consumers. are

in¬

also

strike

possible

not

take place,

the latter part of
somewhat
depressed for this and related in-,
dustries.
1
%

this year could become

The

funds

cost

than does

Most

from

occurred
can

short

through

1950

;

that,

variations

almost

traced

the

basic demand.

the

wide

the

plays a more impor- r
determining the level;

construction

new

run

availability

and

often

tant role in

1958

directly to

;

the number of units financed un7,

der government insured

FHA and

dwell^ j

The number of

VA loans.

financed by so-called
mortgages remained •:
relatively stable during this pe7/
riod. Funds tend to move into the
[

units

ing

conventional

mortgage
yields

markets/whenever

the

investments

are

other

on!

the yields

attractive than

mortgages, and they move/ away/
from mortgages when the«reverse /
If

true.

rates

interest

sponsored

allowed

seek

on/thg';

progams:
their own.

level in the

competitive market, a*
flow
of
funds
into;
mortgages could be expected. Uneven

(

is done, changing interest;
rates will have more than a
this

"nor-:;

influence

residential

'f % /

building.
v

Another factor that has

construction

that

im¬

carried

levels of government

All

influence on real estate,
is the amount of public >

portant
activity

in construction
type or another.

on.

partici//

of
Defense ex-/

programs

penditures might create a brand
city, such as has occurred in
different
spots here in
California; public financed hous-;

spending is
spite of Pres¬

ident Eisenhower's earnest efforts
to

hold

down federal
spending.
outlays
by
the
federal
government, for goods and serv¬
ices, exclusive of the different
types of support programs, will
probably rise to an annual rate
of at least $54 billion, one billion
dollars
higher than the rate
reached during the fourth quarter

Actual

of last year. State

and local spend¬

ing programs

likely to rise by

another

several

ing might be increased in any one;
new roads might be built;*
or new schools constructed
to ed-;
year;

ucate

are

$3 billion.

These figures

indicate that the total demand for

our

children.

All

these*,

activities, add significantly to the
estate trans-Z

total number of real

actions.

•

Persons

engaged in the real es¬
tate business should feel quite op¬
timistic about the future after

viewing the

nomic trends.
our

re¬

pertinent- ec67

The total outDut ofv

nation is apt to come close to:

doubling
real

various

While

estate

various

the

end

segments

industry

geographic

1975.

the-

well

,as,

within.
the United States will participate
in this growth at different rates:
at
different times,
the over-all;
areas

picture is filled with promise and;
opportunity. With the economy of
the
southwest growing at rates:
that exceed the rest of the

nation,;
opportunities here appear to i
be greater than those found in any '
other area of comparable size.
> ;
the

Commodity Exchange, Inc.
Elects Three New MembersThe

government

increasing

buying mood for real property.
During this year, nearly 4 million
workers
will
experience • auto¬

the

home building in¬
will' be in trouble. The
Another important economic dustry
has already
trend affecting real estate is the Federal Reserve
started to tighten up on the cost
trend and distribution of personal
of
money and mortgage funds are
income. The recessions of 1953-54
and 1957-58 demonstrated we have likely to become more scarce un¬
less
the federal government steps
learned how to prevent a drastic
into the gap. Even with this ex¬
reduction
in
personal
income.
Therefore when this is done one, pected difficulty over funds, I still
might expect expenditures of con¬ believe we will construct approxi¬
mately 1.1 million units during the
sumers to remain relatively high
year.
even when a reduction in general
business activity occurs. In addi¬
Inventories are on the rise as
tion, the incomes of our middle total sales continue to increase
and
we are now producing more
groups are rising faster than those
in either the extremely high 'or than we are consuming. By the
low brackets.
As a consequence, second quarter inventory accumu¬
the people in these groups, with lation will approximate an annual
a comparatively high level and a
rate of $3 billion.
Whenever this
high propensity to consume, seek occurs, employment improves
real property and, thus, increase
even though it might be of a very
the number of real estate trans¬
temporary nature.
In

anticipation

by mid-summer. If the strike does

new

From

actions.

and

One Stock Purchase Warrant

industry is forging ahead at
rapid pace but a large part
seems to be caused by an

this

pate

Outlook

still

are

very

one

Strong, Short Run Residential

10,000 Stock Purchase Warrants

steel
a

though some
lagging.
The

manner even

industries

mal"

tainly:1 by
Personal

year's recession in an

last

orderly

to modernize and to

reports X have been
sought to supply the recreational; able to see, the residential sector
requirements of this young and;• of the .construction industry is in
vigorous new society. All of this a strong, short, run position. The
growth, whether it is commercial, large number of new dwelling

out

will

Product

tional

til

additional governmental facilities.
In
addition, real estate ..will be¬

Influence

Gross Na¬
approximate
$466 billion this year, about 7%
above the estimated $437 billion
of 1958.
We seem to be coming
aggregate output

over-all activity gains momentum.
Over the next few years, outlays
out

trends

the

together

ing segment of business, and it is
anticipated that there will be an

will

industrial, governmental, recrea¬
tional, professional, or even re¬
ligious in nature, will have an im¬
pact upon pieces of real property
and, thus, will influence future
real estate, activity.

Added

were

increase

history.

general business indicate that our

government

schools;

will need to be constructed

our

Higher GNP in 1959

Sees

cline occurred in the manufactur¬

established! trial development will be required

produce the durable

est level in

less

sjtroyed or demolished/,' plus the'"
Last year saw quite a decline in
growing tendency for many fami- V total;- expenditures on new plant

services

and

approximately $100 bil?
by the end of 1959. the high¬

lion

stronger

a' tremendous rise in business ac-;
theif new long, sleek, expensive
tivity.
.
models perhaps they should take
/

trend.

penditures;

All

tion

durable

Thus, the short term forces
affecting real estate will be oper¬
ating around a long term upward
A

1965

the

million ;by

244

the conservative

current

growth

probably safe in assuming that by
1975 we will add to our popula¬

tend

higher level of
of over-all de¬

ply and costs of funds needed to

Dockson

1959.

will

tions.

Regional
Appraisal Conference, Los Angeles, Calif.,
13,

whole

ever

tribution of personal income; the
trend in total spending; the sup¬

likely to in-

Professor
Southwest

nation

formations;' the

enter¬

our

are

from

cline will be temporary and need
not
reach
catastrophic
propor¬

arc:

activity

to retain the

basic elements of the free

industries

and

suffer

towards

extreme

for

periodic
downturns resulting from
overexpansion or over-production but

further increases in the price level

ment.

environment

future

expansionary and
this is bound to have an important
effect upon real estate. Individual

total

our

rate

whether

emphasis

our

the

Dockson

increase

output each

economic

The

•

afford

can

same

over

States

million

fifteen

and

United

people

activity.

ness
•

year.

Business

the trend

tate is

expected that

now

million

200

personal

is
in¬

given period.
compared with approximately 176
Since the past es¬
With incomes higher and a large
timates of the Bureau have been * share of their former debt
repaid,

applying our knowledge and, thus,
our total
output will not always
be at the peak nor will prices al¬
ways be held at the same level.
Our
rate
of
growth/ might be
somewhat, less than Russia's but
this is a small and inconsequen¬
tial price to pay for an economy
that offers us the highest living-

system

Trend

approximately 6%

Another factor

future

total

rise

told,

million today.

are

our

that

will

within

trends which
We now possess the knowhave an effect upon real estate, it ard.
is even more important to under- how to prevent a disastrous de¬
stand
the
pression as well as runaway in¬

specific

It is

All

cause.

during the current

will have between 192 million

and

toward

living

estimates

this

come

most

significant trend af¬
fecting future real estate activity
is the anticipated rate of increase
in our population.
Just recently
the demographers of the Bureau
of the Census have again revised

California, Los Angeles, Calif.

University of Southern

wage demands of
other industries. Also,

goods

government
will reach

employment is turning up and,
thus, total income will also rise

Determinant

Commerce,

School

Economics,

in¬

the

workers in

and
Professor

employ¬

This, in turn, will have

fluence

Estate's Most Important;/

Calif,

increases in their wages as

result of contracts with

ers.

forces, plus others, determine the
level of real estate activity for
any given period.

DOCKSON*

Bank, Los Angeles,

Union

tax

our

Real Estate's Prospects
Consultant,

industry

our

...Thursday, April 9, 1959

Board

Governors

Commodity

Exchange, Inc. an¬
nounced today the election to full,
trading
privileges
on
the
Ex¬
change of Abraham C. Gok'berg,

general partner, Bruns, Nordeman
Co.; Donald V. MacDonald, gen¬
partner, Francis I. duPont &
Co.; W. Harvey Thompson. Vice-

eral

President

and

General

Riverside
H.

Alley Metal
Porter Company.

Manager,
Division, *

Commodity Exchange Inc. is the.
nation's
tures

marketplace

for

the

fu¬

trading in copper, lead, tin,,

zinc, rubber, hides and burlap.

•

Volume

Number 5836

189

The Commercial and Financial Chronicle

...

(1639)

The

appointment of Gilbert D.¬ began his

Lawrence

News About Banks
CONSOLIDATIONS
BRANCHES

NEW

OFFICERS, ETC.

Joseph
Trustee,

Board

the

A.
Broderick, former
President and Chairman
of

River

East

velopment,
tional City

Sav¬

short

illness.

Mr.

Broderick

,>../•

re¬

tired from the

River

East

Savings
on

1957, complet¬

ing ?" 61
in

years

bank¬

the

Broderick

was

appointed

by
as

Federal

Jan.

institution.

that

Broderick's

Mr.

banking
with

1896

New

career

the

State

examiner and
served in that capacity until No¬
as

National

appointed

.was

Franklin

intendent

1934.

Banks

the

until

Lehman

Floyd M.
Feeney

Presidents

Brown
..

•

31,
-T

■

and William
elected
Vice-

Chase

Manhattan

Bank, New York.

and enlarged

new

1902

which

the

Inter¬

Corporation,
purchased
The Tokyo

was

1915.

first

was

quarters

State

Dec.

r-;"

were

opened

1923

the

pending

building

new

■'

site.

v-,?:;';''

the

opening of

new

branch in the Belgrano section of
Greater Buenos Aires, Argentina,

residential section
Argentine metropolis. The

prosperous

the

branch is located at Cabildo 2246.
National

First

Following
ment

the

recent
A.

DeWitt

appoint¬

Forward

erated in

1914.

City

-has

op¬

Argentina since Nov. 10,

has

other

four

branches

Vice-Chairman, C. Sterling Bun¬ in Argentina — three in Buenos
nell,- Senior
Vice-President
of Aires and one in Rosario..
The new
The First National City Bank of
opening is the 53rd
New
York,
has
assumed
Mr. in Latin America and brings to
Forward's former duties as Chair¬ 77 the number of branches, offices
the

man

mittee

bank's

overall

and

Money

Com¬

supervisor

and

named

was

bank in

Street

head

Office

the

America
Fifth
•

MANUFACTURERS

affiliates

and

countries

the

bank

overseas.

TRUST

NEW

YORK

Mar.

public

Cash
:

S. -Govt.

curity

pany,

815,910,419
865,585,430
1,208,591,326 1,268,386,427

23,354,969

❖

71,113,502

viewer

formerly

New

The

Assistant

York,

Vice-

Vice-Presidents March 31, it was
announced

Chairman
•

Coincident

ment,

Mr.

rick, of the Empire State Office
staff, and Walter J. Woytisek, of
the methods research department,
-been

Appointed
were:

Assistant

officers

Donald

the

Castleman, and
banking op¬

,,48th

Street

branch,

buy

Investment &

Replacing

Mr... Bunnell

the

supervision of the Western Group
National

the

and

Services

Group

in the bank's National Division is

George
C. Scott,
Senior VicePresident, who has recently served
as
deputy in charge of the New
York

Branch

Division.

is succeeded
Senior
act

dent

senior
the

Scott

by James M. Nicely,

Vice-President,

under

Mr.

who will
supervisor

group

Vice-Presi¬

Executive

Luca

has

been

North

operating as Modern Invest¬
ment, was located at 116 Fifth

America,

Avenue.

North

its

1936

ministrative

serve

assistant

and

redecorated

head-

by Jacob
Leichtman, founder and President,
it

was

COnvert

senior supervisor of

operations in

Mr.

ment,

succeeding

Moore,

Highland

head

the

had

been

occupied

Section
and

will

known

as an

Finance

offer

sell

or as a

bank

Edward
economist
Bank

and

with

the

Corp.

{$10 Par Value)

945,243,956

discts.

603,393,418
1,408,808,689

1,524,399,145

profits

48,715.518

45,837,760

through April 16, 1961

3,593,507,713

se¬

hold'gs

Undivid.

"Convertible into Class A Stock

Dec. 31,'58

791,316,998

Govt,

curity
Loans

due

banks,,

585,707,523

Price $10 Per

combination

regular
tomers

change
man

courtesy-identi¬
card is being offered to
checking
account
cus¬
Chemical

Bank,

Harold

First

New

Helm

kind

its

Corn

York,

Ex¬

Chair¬

announced.

Copies of the Prospectus

may

be obtained from the underwriter

only in States in which the Prospectus

may

legally he distributed.

offered

National

associated

Companies

announced

Symonds,

solicitation

125,000 Shares

BANK

3,015,327,240 3,174,002,554
*
'
:

formerly

act

major New York
card

cash

will

business

New

enable

checks readily

offices

that

any

York's

De¬

gardless
his

bank, the
the

bearer

and trans¬

S. D. Fuller & Co.

of Chemical's

conveniently located in
five

International

for Reconstruction and

new

also

on page

YORK

NEW

Deposits
Cash

fication

Department.
The

EXCHANGE

CORN

has

Swanson, Assistant
Vice-President, in the administra¬
the

Commercial

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

Gold Seal Products

account.

which

boroughs,
office

26 If road nay,

re¬

handles

tVililehall 3-0066

■*

Continued

circumstances to be construed

from

The institution
as

3,422,882,448

De¬

Robert

charter

commercial bank

April 8, 1959

Ex¬

Total resources,

who

the
be

Corn

changed

Industrial

Bank an(j Trust Company of New

the Bank of 30 years.

any

6%% Convertible Cumulative Preferred Stock

elected

was

Mar. 31,'59

ment, will supervise the Loan and
Credit

the

announced

Chemical

Charles
O.
partment.
Stapley,
Assistant Vice-President, formerly
in charge of the Credit Depart¬

Division

also

Romnes

CliEMICAL

Credit

Vice-President,

become

its

change Bank, New York.

tion

Director

from

Silleck, Vice-Presi¬
dent, has been placed in charge of
the Correspondent Bank Depart¬

with

Helm

Board.

branches.

Robert

Modern

trust p0wers

became

n(jted the Fifth Avenue

premises

appointment of A. S. Aronson to
its Grand Central Area Advisory

per¬
as

institution

Bank.

New Issue

Exchange Bank

Hi Helm, Chairman.

ad¬

sonnel officer and will continue

the

name

Corn

head¬

still

Bank

later,

quarters of the merged institution,

Vice-President of Com¬
of

years

Brooklyn Advisory Board, it was
announced on April 9 by Harold

Division.

Vice-President, will

Corporation

•

lias elected Dr. Ernst Weber to its

charge of the New York
John E. Thilly,

Branch

the

Chemical

Loan

"by Mr. Leichtman, then 28, believed the youngest bank Presi-

credit policy.

of the first

Exchange-

TUaiuelS*announcement
eS
? Fifth Ave. industrial to
In the

is under

was one

anniversary on April 9 with the,
Seventeen years later it became
of the completely mod- ^he firs|. Bank |n New York State

offer

Manhattan,

opening

Semel, who heads the Delancey Street Office of the bank,

Bank

cruized

joined

announcement

throughout

The Bank

America, New York marks its 35th

Mr.

This

°Hices

hattan.

Commercial

;

Dennen,

the company in 1945.

banking
use ill

$150,000 to one currently capitalized at over $11,000,000 with 12

account officer

general

its rapid growth from a

course of

New York.

the bank's Madison Avenue

with
and

Jenkins,

mercial

bank

G.
Loetzer,
Jr., and
George S. Shirk, Jr., of the bank's
pension? divisiort.
/"»
;
?.

Mr.

several

single office institution capitalized

are*

elected

Theodore

mergers

new

Several

John B. Sherman, of

Richard

concepts

institution
and thn

the

•

" i

Pennsylvania,

George

Treasurers.

financial circles. It has undergone
three
changes of name in the

directors.

Assistant Vice-Presidents. Both

had

resources

Bank, New/Fork^ changed its title cient in the state. In
1926, a merger
tb The Gotham Bank, it was
an-t was effected with Merchants Iny
bank s board of vestment & Loan
Corp. of Man¬

announc-

Moore made known
the ielection of Gregory K. Gar-

has

than $165,000,000.

Brooklyn, Bronx and Queens.

.ft

the

President

? ?

Board.

with

institution

m0re

the

announced

Vice-Presidents

new

by William H. Moore,
of

was

Brunie,

the

George F. Clements, Jr., in charge to initiate personal loan service to
exploration
and
evaluation; waSe earners and small businessEarle Marshall, in charge of in- men.
?
vestments; and William B. Snyder/ v The institution was founded in
in charge of loans
- 1924 in Brooklyn as the Modern
r

named

were

occupy

Currenty ranking 182nd among
nation's
commercial
banks,

the

New York, it

Henry

also

Presidents of Bankers Trust Com¬
pany,

sections

the

vice-presidents have been

of the bank.

James H. Jenkins and Lewis H.

Semel,

feet

100

than

condi-

a new open

first floor quarters.

elected in the oil and natural gas
department of Empire Trust Com-

se¬

discts.

Undivid.; profits

;

Three

854,124,836 1,057,629,207

hold'gs

due

banks_

Loans

Dec. 31/58

3,367,460,478 3,654,044,628
2,984,566,837 3,257,855,823

and

from

31,'59

*•'»'

resources-

area

air

windows to speed customer scrvice. Executive offices and inter-

through 1955. He joined the Empire State Office staff in 1956.

■//V'V/'

17th Sts.

iong and bordered by a marbled
L-shaped tellers counter with 10

The history
system and headed the Jamaica / includes three
Office of the company from 1953pioneering
of

COMPANY,

installation

tioning, the creation of

1950 when Title's banking operaSchnell
joined Manufac¬
tions were purchased by Bankers.,
turers Trust Company in 1948 ancl
He served with various branches
is /assigned
to the bank's Fifth.
in
the
Bankers Trust Company
York.

16th to

The modernization program in-

Trust Company in 1942 and
joined Bankers Trust Company in

North
side

west

the

Ave. from

eluded

and

Flanigan, Chairman of the

Bank

occupies the entire

now

blockfront

De-

1958.

Commercial

Semel was elected an
Vice-President in 1946

bookkeeping center,
years ago, adjoining
The main office

office.

main

the

and is in charge of
Mr.
Woytisek has been with
Trust
processing and research Bankers
Company
since
of the Bank.
•
1941^ and has spent the
majority
of his banking career in methods

erations land

City Bank also

National

announced

former

its
■

First
;

temporary
construction of

ace

Deposits

■?'!"

altera-

six-months

the

three

leased

Street

data

"Total

and has been located in

Super¬

of New York and continued under

Governor

into

branch

Governor
as

Soutter, Avenue Office, 510 Fifth Avenue,

.!?/*/'

by the bank in

1929

Roosevelt

the

*V'/.-i' lv New

Banking

control

Commerce

Bank

Vice-President.

City Bank of New York

move

national

/ In 1919, Mr. Broderick joined
the

John

Tokyo Branch of The First

Yokohama

1914.

vember

transferred* to the

April 6 in the bank's
nine-story building at No. 4/
2-chome, Otemachi, Chiyoda-ku.
The bank operates four branches
in Japan and two military facili¬
ties.
Louis D. Cullings, the resi¬
dent Vice-President in charge of.
operations in Japan, is -located at,
the Tokyo headquarteis. -Thomas
P. Davis is Manager oLthe.branch.
First National City's first branch
in the country was established in

In 1910 he joined
York
State /.Banking

Department

Wall

Department

officer of the

Mr.

lancey

new

Trust Company.
the

Also

district

quarters

1952, he became its first
Chairman of the Board. ?
■

April

will

10,

started

and

National

ninth

the

was

1941,

Comptrollers

\ Mr.'

assigned/ to
Michigan '-effective

and

Indiana

The

Reserve

Named

joined the Bank
appointed an

was

Assistant

Department

Joseph A. Broderick

President

and

Assistant Secretary in 1955.
Mr. Lawrence is assigned to the

Board.?-?.

•

of ; the

York.

will

Cashier,

System for a term of 14 years.
He resigned after 18 months serv¬
ice to accept the Presidency of
the East River Savings Bank of
New

Lawrence

1941

econ¬

Hong Kong
long Branch?' ~'fJf ?

member of the

ernors

Assistant

During

tion program,

boy. He
joined
Bankers
Company in 1955 through
the merger of the two institutions,

Board.

Board of Gov-

Com-

institution's

the

with headquarters in Hong Kong.
He was formerly manager of the

Public

subsequently

Henry M. Sperry has been ap¬
pointed a resident Vice-President,

President
Roosevelt

the

Trust

program

official assistant,
Mr.

1936

Na¬

and

Company, New York is announced
by Horace C. Flanigan, Chairman

be transferred froim the Petroleum

same

ing field.
-

First

with

career

Bank

Meanwhile, John L.
Ivers,
Assistant 'Vice-President,
will leave April 22 for City Office,;
The appointment of Charles W.. operation. • He was named an officer of the bank in 1955.
London, where he will /assist' in Schnell as an Assistant Secretary
Mr. Garrick/ began his banking'
the development of international of Manufacturers Trust
Company,
petroleum
business.
Robert
C? New York, is announced by Hor¬ career with the Title Guarantee
Paradise,

Bank

October

join

petroleum

omist May 1.

ings Bank.vNew York, died April
5 after

will
as

National

the banking operations had been transferred to ths

CAPITALIZATIONS

Vice-

pany in 1926 as an office

Mr.

Bankers

and

REVISED

Assistant

President of Manufacturers Trust

NEW

New York 4, N.Y.
TWX NY 1-4777

The Commercial and Financial Chronicle

(1640)

at the

Coast

This interest

moment.

Line;

least

been in the

enoughStrength td

high territory.
*

'The' sick note

unsuccessfulattempt quality items

The

with

coincided

among

ing and the prospect that the
the tempo will pick up as warmer ,

American

was

weather

around which much pes- Cement,

unprece- Can

realty issues them¬

^^^ructioiV;ahd^^roadifmild-:

;

Washington
JAhead of the News
By CARLISLE BARGERON

selves.

first quarter earnings with the
for a time to be a determined help of Aerojet, its roc k e t
Cements Also Laggard
stab
at
piercing the mid- subsidiary. Aerojet's pro f i t
Also among the more lag¬
March peak in the industrial jumped 67% in its fiscal quargard issues — and it is not a
average but the list turned ter. General Tire and Aerojet
new
story — are the cement
easy after it couldn't mount stocks were quick to respond
shares ^despite alb the; heavy
Stocks made what appeared

record

From

there

hasn't been any concentrated
attention in them as there has

STREETE

By WALLACE

dented flow of official warn- simism

circled.

was

re-

ings against blind speculation peater -several times on the
from the Securities and Ex- list of new lows and

it ap-

•

arrives.- Ferin-Dixie

It's

Committees usually select the
discouraging to be a con¬
servative in Washington these speaker for conventions, annual
days. How does a man feel,-for meetings, etc. and they strive to
example, who for 15 years has get something different. They
sometimes seek a speaker who
fought the

battle of busi¬

ness,

the

they think will shock his auditors.
a good .show.
;

It makes for

see

Some

Unite;d

States

Cham¬

ber of
merce

far.

its

profits

crescendo

that

is in

unique in stock market history and had to share a bit of
blame for chilling the list.
Shift to

The
the

Quality

apparent effects of all
notices

caution

was

calm down the

play in lowpriced issues, shift attention
to the better grade items and
prompted some rapid profittaking where good gains were
carved out.
$

cans

whopping Communism up. Now
they have recanted. It is more
interesting to hear them, appar¬
ently, tell about the evils of Com¬

Hu-

Hum¬

speakers at its

munism than it is to hear speakers
who were against the Communists

annual

back when the

meet¬

shortly. For the industry gen¬
followed an overall reduction erally, and Penn-Dixie specif¬
in January on all metal cans, ically, prospects are for a good
*
*
*
rise in sales this year. PennDixie's profit picture is for
Also something of a new
results of around second best
note was some stirring in the
in its history. And, as the preaircraft section, helped along
liminary expenditures for
by high secrecy by CurtissWright over some new prod¬ planning, land acquisition,
uct or products it is planning etc., in the highway program
which excited curiosity, and taper off and actual construc¬
tion and cement usage picks
by the diversification plans of
North American 4vision up, continued good business
which

proposed merging with
is:

Foster Wheeler. The latter

Vick

Chemical

prob¬

was

ably theleading example of

multipoint gain
a

one day with
reaction of almost as much

into

the

60's

That

earnings will

seems

assured.

than

up
Carlisle

Bargeron

was

tough.
build

don't

their speakers and writers the
the leftists do. They are more

inclined to throw little favors to¬
wards the leftists.

and

The

latter

well

are

organized.

Sen.

Humphrey is

President.
the

They throw favors to each other
and

candidate lor

His appearance before
tends

Chamber

boost

generally

other's

hard to pin the
a man who
appears before one of the coun¬
try's leading business organiza¬

tag of radicalism on

George Huberty With
J. N. Russell & Co.

tions.
can

years'

tell you

how a man of 15
friendliness for business

feels about it.

ran

into

one.

(Special to the financial chronicle)

CLEVELAND, Ohio — George
Huberty, Jr., has become associ-

"Not

since I have been in
he
to

It is pretty

stock.

advancing each

are

welfare.

his

Washington,"
said, "have I ever been invited
speak to the United States

Chamber of Commerce.

ated with J: N. Russell & Co., Inc.,

be-;

ginning to think that I have been

double the dividend

going

conservatives

way

vice versa.
Two
antagonistic bodies could
hardly have been gotten together.
against

The

Chamber

the

used for food which

reformed

are

having

of the larger in? phrey as one
held back of its principal

one

the group, has been
in recent years as.

successful

most

our

Communists. In the 40's they were

Senator

bert

speakers and writers

Com¬

statements are con¬ ing. Senator.
change Commission, stock ex- peared to be mostly concerned cerned by heavy capital ex¬ Humphrey
change officials and broker- over pricing policies by the penditures^ but should start to stands for ev¬
age
houses. The warnings company. The latest trim was realize the benefits from them erything that

reached

Thursday# April 9, 1959

Florida

realty has so far
skipped by both Seaboard and

THE MARKET... AND YOU

...

require-'
equipment ,
on
the wrong track."
This par-;merit makes this,, too, a can-'
to go underground than it is
ticular Senator is an accomplished v
didate for liberality.
„/
for soaring in the skies. It;
speaker and certainly his position.
in the Senate gives him an impor¬
was, however, the better-act-^
Oils Stirring
:
: *
' tance.
,v
V.'"
V7x ■ -v
ing item on the news^since the;
■This is not an isolated case.:'
There
was some stirring in
share-for-share exchange pro¬
Business organizations have a
the oils.and a few issues were
posed found Foster Wheeler
tendency to go to their enemies able to show some cautious for
speakers. The editors who are ',
lolling a handful of points
demand but the oil group is meeting in Washington soon have \
under that of North Ameri-,
about as moderately priced as as their principal speaker the Cu-r:
can. It narrowed the gap in a

naore

noted for oil

the next. American
reached
1250

for

the

Telephone
round figure of

the

first

time

since

1930

and, in fact, was a good
help in carrying the industrial
average
to within a small
fraction of its previous high.
And then it, too, had profittaking troubles.
£

ban

Rails Still

Neglected

the neglected major
neither prominent on
to surge ahead, or the many any urgent selling or spurred
on
the
buy side by such
warnings against speculation,
was
responsible but trading merger proposals as that be¬
interest was on the low side tween Virginian Railway and

wasn't

quite

clear

whether the market's

inability

against the recent fever pitch
pretty close
to the three million line, or a

ture

group,

Norfolk & Western.
❖

and volume held

norm a

less

than

the

Motors New Leaders

The

new

note

was

ally, Ford definitely in the
limelight with an appearance
the

head

the

volume

parade which is not its normal
position and nudging out the

hardy perennial in that spot,
American Motors. In the proc¬
Ford worked to its best

ess

posting since early , in
When it
never

was

1956

first listed. It has

sold in listed

trading at

the $64.50 price at which the
shares were first brought out
to the

public but

was

Despite

rails weren't

in its

sustained

interest in the motors gener¬

the neglect,
the
lantic are the convertible de¬
entirely without
couple of weeks back. merit. Atlantic Coast Line, in bentures which, if exercised,
could add up to a better than
fact, with a sharp snapback

million

appar¬

one-fifth dilution in the

profits and

expenses

substantial

was

income

from

of Louisville &

some

the

other

sibility eventually of

promises

Some

incensed

they

of
at

resigned

upon the Pres¬
the editors were

this

from

episode that
the editors'

of the speakers who used
demand was Earl

One

be most in

Browder, the head of the Com¬
munist party in this country. He
is now working the very profit¬
able trade of consultant to Ameri¬
can

business.

He is

expert on

Huberty, Jr.

Building,

bers

York

the

New

and

Exchanges. Mr. Hu¬
berty was formerly Manager of
the trading department for Goodbody & Co. in Cleveland.

Kieckhefer V. P. of
Loewi & Co., Inc.
MILWAUKEE, Wis. —J. Victor
Loewi, President of Loewi & Co.,
Incorporated, 225 East Mason St.,
members of the New York

Exchange,
of

Vice-President.

Kieckhefer
has
recently
joined the Loewi organization.
Mr.

Since
been

Sachs

1952

Mr. Kieckhefer has

associated

Co.'s
to

with

Goldman,

Chicago

that

a merger

LOS

ANGELES,

Calif.—Marie

E. Schneider has rejoined the staff
of Kerr & Bell, 210 West Seventh

Street,

members

Coast Stock Exch.
has

recently

Lambert Co.

the

Pacific

Miss Schneider

COMMERCIAL & FINANCIAL CHRONICLES
Excellent Condition—AH Canvas Bound
From
1837 —to —1945

been

with

Akin-

Available immediately in N. Y. C.
Write

Phone

Edwin L. Beck, c/o

—

Office.

was

FOR SALE
In

Stock

has
announced
the
James F. Kieckhefer

Nesco, Inc. in Milwaukee.

Russia.

mem¬
Mid¬

Stock

west

election

association.
to

George

Union Commerce

(Special to The Financial Chronicle)

issues where bright with Seaboard Air Line to
are
the mainstay, give it
something approaching
General Tire had specific a
monopoly in an area where
facts, it almost quadrupled home building is all the rage
space age

heaping ridicule

ident.

Rejoins Kerr & Bell

Nashville. In

i'S

addition, there is also the pos¬
Unlike

its

ently heading for that mark ownership of about one-third
this week.

com¬

good rein
mon.
The stock, as a conse¬
headed to¬
ward earnings that made it quence, has been available at
a
satisfactory 4% yield, facing
something of a dividend-boost
canadidate. The earnings have prospects of a good rebound
in business as some of the
held
up
well throughout,
$4.79 in 1956, $4.20 in 1957 problems evaporate during
and $4.04 in 1958 against a the year. Moreover, dilution
dividend requirement of $2 a of the common would not be
share with the prospect that imminent until the stock has
risen a dozen points over re¬
earnings this year should ap¬
cent levels.
proach the 1956 level and
leave plenty of room for a
[The vieids expressed in this
article do not necessarily at any
payment appreciation. In ad¬
time coincide with those of the
dition to its own increasing
"Chronicle" They are presented
business, Coast Line also gets as those of the author only.]
on

revolutionist^ Fidel Castro. It

major one which is an hasn't yet been determined
oddity since this section was whether he is going to be friendly
regarded for long as the prin¬ towards us or more friendly to
Russia.
He
bids
fair
to
be
a
cipal anti-inflation hedge. At¬
America's trouble maker.
Latin
lantic Refining was not too
Yet these editors, without consult¬
much in favor when the play ing the State
Department, invited
was in producers of excess oil, him to come here as their honored
or balanced,
integrated mar- guest.
Several years ago these same
k e t i n g companies. Atlantic,
editors invited to their meeting,
however, has been building as their chief speakers, a British
up its production toward the and French journalist, who ap¬
goal of self-sufficiency. In the peared with President Hoover.
markets, a drawback for At¬ They devoted their whole address
any

rush.

Railroads continued to fea¬

s]:

REctor 2-9570

Chronicle. 25 Park PL, N. i\ 7

with

Number 5836... The Commercial and Financial Chronicle

Volume 189

(1641)

not all companies issue
last quarter.

Insurance Stocks

several earlier

occasions, we warn that industry figures could
be deceptive—deceptive in the sense that soirie companies, such as
those affiliated with finance companies or those in other fields,
often have the expense factor taken care of by the parent company,
and hence are not representative of the rest of the industry:
Speaking generally, most fire carriers reported better results
; in 1958 than in 1957. In the casualty end of the industry the im¬
provement was less apparent because results in the automobile
v
liability line continued to be quite poor. A large group of com¬
panies, doing upward of three-quarters of the stock business that
is done countrywide, showed an improvement of about 2,/*> per¬
centage points in the loss ratio, according to data from Alfred M.
r Best Company.
While jir»bably this would not carry them out of
the red so far as the combined loss and expense ratio was conf
cerned, it did improve the picture considerably. Underwriting
fc
expenses were moderately lower, too, so the combined ratio brings
* us down to
just a little above the break-even level.
This week we give the statutory underwriting results of a
<; large group of companies, 1958 compared with 1957.
Also the
?
investment gains or losses for the two periods. Figures in thousands.
1957

Investment Gain

Aetna

Casualty—

Aetna

Insurance.

American

$8,459
8.938

Equit.__

854

American Surety-

5,266

Bankers &

900

Ship—

Camden Fire

Continental

842

■

Ins.

1957

1958

+$ 853

—

7,206

—3,140

Insurance

516

Fidelity & Deposit
Fidelity Phenix—

1,977

6,295
3,780
1,926

+3,996
+ 1,585
—4,703
—1,180
+
699

8,464

Federal

•

Falls

Glens

•

Hartford Steam Bl.

Insurance Co. N. A.

578

Jersey Insur
Merchants

National

Fire

1,719
1,692

Fire..

New Amsterdam C.

4,441

Northern Insur.—l

753

Seaboard Surety-_
Security Insurance
Springfield F & M
Maryland Casualty

958

894

236

—9,205

Republic,

Dallas.

1,008
56

St. Paul F & M—

4,945

Accident

7,430
20,285
2,295
1,332
3,522
■11,769

Standard
U. S. Fid.

& Guar.

Fire—

Reliance Insurance
American

Insur.—

American

Re-Ins..

Insurance

Continental
Firemens

90
■

Cas.__

2,024

Insur

9,180

General Re-Ins.—.

Insurance._

3,395
3.939
8,876

Bonding-—'

357

Hartford

.Mass.

842

Hanover Insurance

Homo

3,650

Fire-

460

1958 marked the ninth consecutive

which

for

year

accounts

lished

deposits,

total

and

assets

capital
estab¬

record

highs. These
and
other significant facts
are
revealed
by
the
of
Summary
new

United States Banks in the March

+ 115,122

+ 890
—2,516
+6,370
—9,336
+ 1,196
—3,132
—2,029

121

4,889

Directory is the 129th Edi¬

tion of this semi-annual publica¬
tion. It contains morer.than 3,000

addition to United States
banks, it lists information on all
banks and their branches known

pages. In

an in¬
compared with
$21,220,992,608 for Dec. 31, 1957.
This represented a record-break¬

10%,

The

number

nation's

from

NY Dealers Dinner

ing amount in one year, the in¬
crease being $2,146,091,823.
banks

Most Successful
The 33rd
New York

annual dinner of the

Security Dealers Asso¬
ciation held

the

April 3 at the

banking system declined.

14,149 in

1957

14,075

most

long-term growth trend, increas-'
ing from 8,556 to 9,177.

Deposits—

number

The

banks

follows;

tendance.

guests

the

commercial

new

When

group

classifying the commer¬
by deposit size, the
over $1 billion increased to

banks

in 1957.

The

3,916
1,217
2,211
2,365

7,631

banks with deposits of more

than

2,619

222

4,658
2,773
3,387

15,298
15,454
7,100

1958

from

billion had aggregate deposits
$60,372,439,363 at the end of
1958 compared with $54,340,773,-

353 at the end of 1957.
this

Banks in

27.52% of the
deposits.

have

group

total commercial bank
Banks

each

billion

also

the

various

million to $1

groupings from $3

showed

increase

.6%

Bank Stocks
Buketin

deposits.

Members New York Stock Exchange

committee.
Pictures

commercial

only

showing
1958

were

bank

taken at the dinner ap¬

groups

decline at the end of
those with less than $3

million in deposits.

This category

reduced in number from 6,643
at the end of 1957 to 6,207 as of

S. L.

was

Dec.

Joseph, Partner
Wineman, Weiss

Deposits of the
Stephen L. Joseph, associated
than $3 million
for many years with Bache & Co.,
$10,457,748,381 where he
was
Manager of the
to $9,953,294,790.
Research and Investment Super¬
Mutual savings banks numbered
visory^
Department,
has joined
519 and increased their deposits
Wineman, Weiss & Co., 61 Broad¬
by 9.2% over 1957, or by $2,903,way, New York City, members of
739,234. Non deposit banks and
the New York Stock Exchange, as
trust companies, along with
a general partner.
"Other
Banking Institutions"
In
his
new
association, Mr.
numbered 148.
Texas leads all states in number Joseph will be partner in charge
31,

1958.

with

banks
went

down

less

from

970

both in number and deposits. The

aggregate number was 7,181 at the by Illinois with 944, Pennsylvania the firm in extending its institu¬
tional
end of 1958 compared to 6,844 at with
supervisory
and
general
744, Minnesota with 686 and
the end of 1957. The deposits of Iowa with 670. In the number of sales activities.

1,262

5,358
2,962
3,426

8,570

2,172
3,292
9,575
10,540

34.212
15,683
9,598
12,231
14,308
5,901
8,010
40,210
20,441

2,047
4,744

9,181

5,598

16,822

78,616

33,437
1,335

61,494
3,460

+
+

the

banks

these

groups

were

$149,043,800,479 at the end of 1958
compared to $139,269,894,402 at
the

same

The banks

time in 1957.

in these groups

hold 67.95% of the
deposits.

total commercial bank

The 7,201

banks having deposits
of
more
than $3
million hold
95.47% of the deposits of commer¬
cial

banks.

This is

increase of

of banks with 977 and is followed

banking offices, the State of New
York leads with 1,931 of which
567 are banks and 1,364 branches,
followed by California with 1,572
of which 126 are banks and 1,446
branches, Pennsylvania with 1,450
of whiqji 744 are banks and 706
branches,
Ohio
with
1,149
of
which

605

branches

banks

are

and

then

544

and

Texas

with

research

and

will

also

The

Edward Tague

is engaging

securities business from of¬

fices at 165 Broadway, New York

City, under the firm name of W.
Tague & Co. Mr. Tague
was
formerly with Rockefeller,

Edward

Williams & Co.

undersigned have placed the Notes, ckscribed below, with
This

announcement

institution.

appears as a matter of record only.

$20,000,000

Houdaille Industries, Inc.

(for refunding purposes)

and Grindlays Bank Ltd.

Head Office:

Members American Stock Exchange
1»0

BROADWAY, NEW YORK ft, N Y.
Telephone:

BArclay 7-8500

First

26 BISHOPSGATE, LONDON, E.CJ

Second

London Branches:

54 PARLIAMENT
13 ST. JAMES'S
Depts.:

Nairobi;
Tax

Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks

closing April 1, 1960 for $15,000,000

SQUARE, S.W.I

Depts.:

Dept.:

Parliament

13 St. James's Sq.;

Parliament

13 St. James's

St.

In¬
&

Sq.

oAllen

Bankers to the Government In: aden, kknya.

Company

ooanda. zanzibar a somaliland protectorate

Bell Teletype NY 1-1248-49

(L.

closing April 2, 1959 for $5,000,000

13 St. James's Sq.; Govt.

Ins.

St.; Travel Dept.:
come

STREET, S.W.I

■A j+'

Branches in;

April 6,1959

india. pakistan, ceylon, burma, kenya.
tanganyika, zanzibar. uganda.

aden, somaliland protectorate,
northern and southern rhodesia

assist

W. E. Tague Opens
W.

Promissory Notes <lue April 1, 1974

Rd.,

Many small banks moved into
pear in a special insert in today's
higher groups. As a result, the "Chronicle."

BANK LIMITED

Trustee

Laird, Bissell & Meeds

dinner

the

George A. Searight

Amalgamating National Bank of India Ltd,

Request

at¬

right, Ahalt &
O'Connor,
Inc.,
was

NATIONAL AND GRINDLAYS

City

1,885

„

New York

460
and

George

$254,843,846,476

1957 year end

over

Searight, Sea-

$219,357,439,102
34,607,402,613
879,004,761

$236,465,261,399

directory total
13,408 compared to 13,505 a year
ago.
The deposits in commercial
banks-were up 7.5% over 1957,
or $15,289,022,966.

cross-section of the industry
results for 1958. True, it does not bring into the picture the in¬
vestment income factor; but, as we pointed out about this, it is an
average of, perhaps, 5% or 6% higher.
But it will be noted that there is hardly a handful of compa¬
nies that, for 1958, showed plus marks in the statutory results
column.
As evidencq that 1958 leaves much to be improved in
underwriting, 61 % of the above listed companies reported red ink
in underwriting results for 1958; and much improvement in that
department is still needed before we can rate the insurance com¬
panies as being out of the woods. Fortunately some companies have
reported favorable turns in the 1958 second half (unfortunately

FIRST QUARTER 1959

over

members

1958

event,

with

Comparative deposit figures for
the entire banking system were as

1957

suceess-

ful

This tabulation will supply a good

COMPARISON & ANALYSIS

was

Chairman
Total

14.211
6,953

1 d

Astoria

1958. But branches continued their

9,005

Bank

$23,367,084,431,

were

$204,068,416,136
Mutual Savings Banks
31,703,663,379
Other Banking Institutions
693,181,884

3,440
26,96J
+
4,340

1958

crease

Commercial Banks

1,690

1,723

of Dec. 31,

2,119

Di¬

$236,465,261,-

was

Capital accounts

cial

418

Bank

399.

1,269

11,074

th* end of 1957

11,855

9,563

-1

Polk's

rectory, announced March 31.
Bank deposits on Dec. 31, 1958
were
$254,843,846,476, up almost
8%. The corresponding figure for

2,824
34,479

Edition

1959

5,504

206

6.449

are

The March 1959 issue of Polk's

Analysis of Nation's Bank Structure
Banking figures at the end of

713

1,790

—2,065
—1,796

224

—

18,508
+
7,841
+ 75,633
+ 10,728

—1,179
—

68,188

+ 1,387
+1,268
—4,002

Westchester Fire-

Boston

—

locations with 29 of which 18

banks and 11 branches.

to be in existence throughout the

958

6,424

Washington

1,076

—

3,833

969

Insurance

North River Insur.

2,025

—3,824
+
12

—

631

-104,906
5,834
2,352
38,895
3,987
1,272
46,441
-

six, but Alaska

has the fewest number of banking

free world.

Loss

1,158

471

Insurance^

Union

126

—3,203
—1,886
+
45

Phoenix
Prov.

463

143

4,838
8,627
2,700
1,088
1,026

National
Pacific

—

197

ber of banks with

■

+$44,542
+ 14,788
+
4,412
+
6,264

696

banks, where

1958

-$12,583
3,090
1,873

—1,468
+
45
—3,444

head office

prohibits: branch bank¬
Nevada has the fewest num-

ing.

closely subject to the vagaries of the markets for securities. It can,
and does, register sharp swings both plus and minus. It also affects
liquidating values via surplus account.
It appears that the companies are
slowly emerging from the
very bad phase of the insurance industry's cycle.
Underwritingwise, it is somewhat slow.

Statutory Underwriting1 Result

977

state Jaw

But the turn for the better in securities prices enabled
the companies to report sizable appreciations. Of
course, not too
much weight ought to be given to this column because it is so

Preliminary figures on the fire-casualty insurance stocks are
1 beginning to be released, and while the industry shows some im: provement over the exceptionally bad underwriting year of 1957,
they will not go down in the annals as a year to boast about. As
on

its

the

cases

markets.

By ARTHUR B. WALLACE

—

some

•

Turning to the "Change in Value of Assets" column, things
are different.
Here none of them reported gains for 1958, due, of
course, to the sharp decline in values in both the stock and bond

Bank andInsurance Stocks
This Week

half-yearly data), and in

The Commercial and Financial Chronicle

(1642)

maintain

(D., Ark.)

the

instability

lack

in¬

closures made

clean its

practices
revealed in

dealt with

and

two

corrected.

cannot

by law. It is the. duty

Congress
legislation.

remedial

enact

years

Explains Remedial Bill •.••*.

investigations
by the
Select

Senate

mittee

are

Com¬

Accordingly, I have introduced
bill (S. 1137) to correct many

of these conditions. If enacted and

and
that

properly administered, it will go

they have
chocked
the

racketeering, corruption, and the
abuses of membership rights.
It

eordid
vicious

far

ational

sets

conscience.
The task of

ethical

John

McCleJUn

conspirators (both in labor and in
management), with crooks, hood¬

and

extortionists,

thieves,

lums,

murderers,

trying to develop the truth
and get the facts, we have met
With many hindrances and efforts
at obstruction. We are repeatedly
faced -with perjurors," Fifth
Amendment

artists, ana "forgetfulness experts.'' Out of more than
witnesses

examined

during

225 days of public

hearings, over
200 of them invoked the privilege

self-incrimination.

against
a

Quite

number of witnesses who have

appeared before us are among the
Goliaths of underworld characters
and organized

crime.

Recites

The

and

the

exposures

reporting and .disclosure of
business, financial transac¬
in which

abuses of

(2)
Collusion,
bribery;

Record

have

made

extortion,

and

imposition of trusteeships

The keeping of fraudulent
records

the

and

destruction of records to

wilful

cover

embezzlement;

(5) Denying union members the
right to vote—rigging elections—
calling strikes, and making sweet¬
heart-contracts without knowledge
or approval of union members;

(6) Placing unions in trusteeship
unjustifiably and indefinitely, and
appointing
unreformed
ex-convicts

and

known

criminals

manage and operate such trustee¬

ships;
(7) Organizational picketing to
coerce and compel a union shop,
secondary boycotts, hot cargo con¬

tracts; and
(8)
Other

bill,

individual

and

basic

the

collective rights of union members

provides minimum standards
and
requirements
to
safeguard
and
protect
them.
Among
the
rights guaranteed are equal pro¬
tection
of
the
members
under

prescribed
free

;tules and regulations;

of speech

freedom

and assembly;

and fair elections; protection

against arbitrary financial exac¬
tions, and against improper dis¬
ciplinary actions; and the right of
union
members
to
bring
suit
against the union or any officer
thereof in

failure

of breach of trust

cases

rights

observe

are

hindrance

commerce.

Many

addition

dividual

pre¬

'the rights of in¬

members

sue,

the

other

are

Secretary
of
penalties are provided,
including penalties for the use of

criminal

intimidation

evils

are

prevent

union

members from exercising and re¬

ceiving the basic rights guaranteed
to them by the provisions of the
Act.

certain

basic minimum standards; and any
union that fails or refuses to do
should be declared

ineligible to
bargaining representa¬
tive of employees and denied the
right to file and process unfair
labor practice charges before the

NLRB;

immunity

them
in

now

by law. I have

granted
so

provided

bill.

It is

they

charged by

are

submit

are

that these

drastic

—

that

punitive in nature. But I

that

are

too

some

they

are

not drastic;

preventive. They are not

out¬

gangsters and racketeers have in¬ cials
filtrated unions and businesses in
areas

•From
the

and

alarming

talk by Sen. McClellan before
Economic Club of Ne*- York, N. Y.
a

City, March 9,

1959.

would

penalized to any
extent or degree whatsoever.
If
these provisions are enacted into
law.
however, the power and

opportunity
bosses

so.

and

necessary,

four

bills

I shall also seek to outlaw "hot

collective bar¬
gaining contracts. They are, in
practical effect, another form of
boycott that should not be tol¬
erated or sanctioned by law. Again
the

clauses

innocent

tims.

There

shall

of these

vic¬

equitable

this

for

also

the

made

are

can

justification
boycott.

and

crooked

criminal

labor

elements

looked

form

undertake

one

to deal with the

measures

will

will be in the

The

stay in
for

this

curred

have

Great abuses

picketing.

area.

picketed
election

NLRB

majority petition to the employer,
have

selected

a designated union
bargaining representative.
Everyone agrees that "shake¬
down" picketing should be pre¬
vented, and so should "top-down
organizing." This means too often
has
been
employed by crooks,
gangsters, and racketeers under

Near-Term Issues in Good Demand
The

market for

government issues continues to move in a
very narrow range, because there is no important
change in the
demand for these obligations. The near-term
issues, which make "
up the money market phase of the picture, are
finding a sizable
demand because there is still

an ample
supply of funds available
liquid government securities. The new
raising discount issue, the long Treasury bills, continues to
through from the deposit banks who were the original under¬

for investment in the most
money

sift

writers into
and

other

the

manner

deficit

the

hands

institutional

and

deposits to

the

final

investors,

owners

the

such

ultimate

corporations

investor.

In this
government is able to finance a sizable part of its
at the same time not increase the
money supply or

considerable extent.

any

Increased Use of Discount Bills Indicated*
In the opinion of not a few
money market specialists the
Treasury has adopted a new financing policy in the offering of
long dated bills, which will be used more in the future for the
raising of new money, as well as the refunding of issues as they
due.

come

these

use

It is believed in many quarters that the
Treasury will
so that the attrition will be less¬

discount obligations

ened and,

at the same time, it will be relieved of the responsi¬
bility of selling an issue with a set rate that could decline in price
with any tightening in interest rates.
Also, the continued use of
the long dated Treasury
bill, which might run as long as a year,
probably means less use of certificates and notes in future re-r
funding and new money raising operations.
-.-fvfv'
It is

evident that most institutions prefer
Treasury bills on a

losses, to other short-term issues such

certificates, which have gone to a discount after being offered.
It may be that the Treasury in making use of
long bills is endeav¬
as

our short-term money market on a basis similar to
the London discount market, so that the
government bond dealers
and the
commercial; banks here will act as underwriters of gov¬

ernment

with

offerings, with the securities eventually finding

the ultimate investor.

This

wider

demand

home

for

Reserve

cerned

Banks

only

with

their

"open market" operations
bills, there will be more

Treasury

securities for them

to work with.

are

con?
these

be sure, during periods of
tightening money rates there will be greater pressure on Treasury
bills, whereas when the money market is being loosened, there will
be a larger demand for these securities because of the
operations
of

the

Central

Banks.

their

the

cloak

unionism

shake

down employers and extort money

from them. It has also
to

compel

his

employees

union, either
without their

and

little

ployees

but

crooked

labor

employer

to place

This

consent.

is often used also

"sweetheart"

does

been used

the employer

knowledge

secure

Price
The

that until the Treasury is out of the
market, which will
only with the balancing of the budget—a remote possibility
some
time at least—the offering of long-term
government

for

bonds will put a

creates

securities

nothing

for

em¬

demand.

which

the

and

This

type

Long Bonds Probable

come

with

official

money

means

thpt

benefit.

new

raising venture of the Treasury in
which $500,000,000 of money was obtained on a
ten-year maturity
seems to indicate to quite a few
money market followers that the
government will take advantage of every opportunity, whether it
be for refunding or new fund
raising, to obtain some money no
matter how small it may be with a
long maturity obligation. This

one

from

Ceiling

recent

contract,

an-

ceiling

evident

that

the

offering

which

will

most

Sponsor

Financial Forum
American

New

York

Trust Company
conducting a fi¬

acquaint
loans,

and

Roosevelt

insurance etc. The
will
consist
of
three
to be held April 9th,
30th

the

Theodore

High

and

Feeney

announced

by' George- Champion,

President.

Both

Bank

care

this

1920,

was

Street,

Brown

New

the real

mortgage
loan
Feeney in

office,

City,

York
estate

department
the

tions

department

check

processing.
Brown

National

sessions should be made with Mrs.

ant

Jeannette

year

bank

joined

Bank

1950, and

and

charge
the

and

opera¬

Vice-President

BLOQMFIELD HILLS, Micln—
Manley, Bennett. & Company*

members

1926, was. ap¬
'Assistant Cashier in

was

promoted to Assist¬
in

1955, the
Chase merged with Bank of

the

nounced

the

New

York

and

Exchanges, has

an¬

the

opening of an office
Barbour Building, under

management

Edward

Bennett,
Jr.
and
Frederick
Zoellin, partners in the firm.

Foster & Marshall Add
(Special to The Financial

PORTLAND,
Petersen

Ore.

now

Chronicle)
—

with

John

Foster

Marshall, Southwest Sixth Avenue

Manhattan.

Feeney,

Detroit Stock

Chase

Vice-President

Mr.

1947 and ad¬

1956.

Mr.

appointed

Manley, Bennett Office.

Chase

The

at the bank's head

are

Pine

were

pointed

Robbins, American
Trust Company, 301 East Fordham
Road, New York 58. N. Y

William

Manhattan

School,
Bronx,
N. Y. Registrations to attend the
L.

bGnds

appointments of Floyd M.
of

Mr.

trusts,

meetings

take

Assistant Cashier in

Vice-Presidents

them with the funda¬
banking, investments,

designed

program
16th

entitled

The
Brown

Mr.

Fair"

government

vanced to Assistant

"Financial

mentals

women

for

certainly

tional

Chase Manhattan

Appoints Two V.-Ps.

nancial forum for

market

climate which is favorable to certain of these
long-term
and quotations go up, the
Treasury will come along

indefensible. It must be outlawed.

American Tr.

■■

price of these issues.

when

the

coercion and economic pressure is

eral

long as the Treasury
a long time to come,

issues

oc¬

majority of the employees, either
in

to be for

appears

not

until

the

Treasury bills will be a favorable
development for the money market as a whole and, since the Fed¬

believe that any employer or plant

should

is still verv large and it
though the Treasury is going to take advantage of this
by offering more of the long dated bills for both re¬
funding and r.ew money purposes.
looks

oring to place

My fourth bill will prohibit
organization
and
recognitional

great

condition

diction, and where it fails to do
so parties to a dispute will be at
liberty to pursue remedies avail¬
in the courts of the several states.

securities.

market followers that long-term gov¬

short-term

discount basis that show

able to them under state laws and

these

restricted range

market, which

demand

made from time to time but

quotations

few money

perplexing jurisdictional "noman's-land" problem. My bill will
require the NLRB to accept juris¬

The
Denies Remedies Are Too Drastic

punitive; they are protective. No
rageously cruel, corrupt and con¬ legitimate union properly admin¬
temptible. That criminal elements, istered by honest and decent offi¬

many

intended

not

belief of not

and, further, they should

also be denied the Federal income
tax

measures are

cargo"

now

by the instituthat there will be a certain

tions for the balance of the
year, so

about it.

tactic

serve

that

dealing with other aspects of the
problem.
Existing laws are inadequate to
protect
innocent
parties
from
secondary boycott abuses. I pro¬
pose to amend the Taft-Hartley
Act to prevent certain types of
coercion
of
the
employer
and
particularly to prohibit coercion
by picketing at the premises of
the secondary employer in order
to prevent customers from doiftg
business with the employer that
may be involved in a labor dis¬
pute. Such practices are unjust
and impose suffering and hard¬
ship on the innocent and; those
who are helpless to ;• do anything

and

shall introduce

It is my position that all unions
should be required to comply with

to, at least,

coupon

ernments

conditions

against their will

conform

banks continue to make switches from
government bonds, whenever the opportunity is
,'presented, in order-to put these funds into the higher interest
bearing bonds, since this is a "loss year" as far as they are con¬
cerned. This procedure is
expected to be followed
the low

wholesome

given to
Labor.
Many

they

these

enforce

and

members

evident that the

that will be

Title One, the heart of the
defines

remedies

that

acts

restraint of trade and
to

local

force, violence, threats, coercion,

(3) Violence, injury to persons
and property, threats to employers,
employees, union members, and
members of their families;

and

unions.

the

(1) The misuse and pilfering of
union, welfare, and pension funds;

theft

trust

authority, conflicts of interest, or
other
improper activities might
occur. It would also regulate the

enforcement remedies

financial

democratic

union

tions

families.

for

the

for

scribed by law.

include:

(4)

standards

and

1200

conduct

protection of
union members. It would require
full

has been arduous,
difficult, and at time unpleasant
to perform. We have had to deal
constantly with people of low
character or no character at alL
We have had to deal with the
worst kind of manipulators and

enormous;

minimum

processes

this committee
has
been

elimination

the

towards

union

practices

Labor

their

and

Governments

By JOHN T. CHIPPENDALE, JR.
It

effect

field.

house. They must be

own

course, of

the

welfare

prevail in the labor-management

been definitely estab¬

unwholesome

These
must

abso¬

that is

will not do the full legislative job
that is
needed
to
remedy un¬

Other

lished.

and

Reporter

amount of swaps

degree has

there

Everything in it is needed and
required for their security and
protection.
The bill I have been discussing

recognitional picketing.
The

that

Our
;

detrimental to the best

members

unsavory

labor-management relations summarizes

tegrity prevalent today in labormanagement
relations
in
this
country
is appalling. The dis¬

ex¬

./;

lutely nothing in the bill
adverse

aspects of
the highlights of his
bill to correct many of the conditions uncovered in the welldocumented McClellan hearings. The author of the remedial
bill declares the proposed remedies are not too drastic and,
in explaining what else has to be done, briefly reviews four
other bills of his dealing with employer coercion, "hot-cargo"
clauses, "no-man's-land" of jurisdiction, and organization and
authority

foremost

and

interests

Country's

abuse

reduced.

McCLELLAN*

United States Senator

the

ploitation of union members and
working people in this country
will be substantially curbed and

Remedying Unstable Areas in
The Labor-Management Field
By HON. JOHN L.

continue

Thursday. April 9. 1959

...

joining Chase Na¬

at Oak Street.

i«

Number 5836.. .The Commercial and Financial

Volume 189

Chronicle

(1643)

N. Y.S. E. to

Public

Utility Securities

Failure

Exchange also

'(3) When did we last have a
meeting of partners and registered

Compel Proxy Solicitation

may

representatives

result in delisting, Mr. Funston

warns.

By KENNETH IIOLLISTER*

activities.

taken

Lone Star Gas Company

This combination natural gas distribution and production

Keith Funston, President of the
New
^ York Stock Exchange, on
April 3 announced that the Board
of Governors had
approved a broad

com-

pany serves a growing area of northern -Texas and southern Okla¬
homa.

recent

gives up.the solicitation of proxies
will be given until Dec.
31, 1960,
or

population growth has been well above 3 p r o grarn to
expansion in the area has been both /strengthen
extensive and: diverse. Among the nlore important industries in
s tockholder
/ the area served by Lone Star Gas Co; are oil and gas production
rights. It calls,
and processing, chemical and petrochemical manufacturing, tex¬
among; other
tile mills, and, facilities for the manufacture of furniture, paper
things, for
and paper products. The area is endowed with many raw materials1
mandatory
which also have contributed to overall growth.
'
solicitation of
years

Practically all of the 728,000 residential customers now-use*;

4 gas for heating and other household purposes. The
been addirig approximately 20,000 customers per

company has *

•

iii this
category and there are excellent prospects for a continuation of
past experience.
Revenues from these customers account/; for
slightly more than half of total natural gas revenues of $94 million.
Direct industrial sales of $16.5 million last year accounted for
18% of total revenues, commercial sales 11%, sales for boiler fuel
for electric generation 7% and the remainder was derived from

•

(3)
An
agreement
to
solicit
proxies will continue to be an
absolute requirement for all orig¬

;

total

addition

sales

to
the

natural

■

company

derived

from

provide
sales of

83%

sential

in all

600

over

installed

units

in residential

With Arkla-Servel

and commercial

;

Mr.

A proxy is, in effect, a power of
attorney by which a stockholder
delegates to another person the
authority to. cast his vote. The

corpo¬

right to cast their

rules

gram:

of
'

outlined

pro¬

There
nies

are now

the

not solicit
i

which

Ex¬

and

hold

that

However, there is no
requirement that a proxy

must be solicited.

about

security involved

the

his

"(4) Has there been any recent
significant change in the relative
percentage

amount

customer

business \ve have, clone
on
the'
New York Stock
Exchange, other

exchanges,

over-the-counter,

mutual funds?

Member

r"(5) Has there been any sig-.
nificant change in the
price level
of securities purchased?
an accent on low
priced

Firms

The
Exchange has also pro¬
pounded
the
following
list
of
questions for the managing part¬
ner

"(7) What has been the recent
typical conversational trend in
our

firm's

our

customers and

offices

the

part of
the part of
registered representatives?
"(8) Is the appearance and at¬
mosphere of our offices and the
on

our

customers condu¬

our

cisions?

"(9)
Who
is responsible for
watching the SEC 'blacklist' and
other cautionary publications to
not

knowingly handled by us?
"(10) Is our output of informa¬

"(1)

Which partner, in our firm,
charged with the broad daily

Mr. Funston noted that the term

about

tion

writing and

are

Who

responsible

their financial

by trustees.

objectives?

our

counts
we

Have

adhered

new

•/

Joins Hutton Staff
SAN

Claiborne M.

ac¬

f|rm policy?

Sanders has joined
F. Hutton & Co.*

the

staff

160

Montgomery Street#

of E.

THE PUBLIC UTILITY ISSUE OF

THE CHRONICLE

year

exploratory wells of which 13 were successfully completed and
10 of these appeared to justify additional development work.

Will be Published

April 16, 1959

During the past year the production subsidiary nad a net working
interest in 94.8 wells of which 28.6 were completed as oil wells,
51.6

gas

wells and 14.6 dry holes.

During the year acquisitions

increased total holdings to 530,984 acres of

★

undeveloped leases,

net increase of 20% over the previous year.

sent the official

In addition the company owned 142,964

developed acres and had

working ownership in 442 gas wells and 441 oil wells.

net

has continue

fields
of gas.

into

which

Work

development of the company's underground storage

now

have

gross

During the past year 17.4 billion cubic feet were injected

the

underground

reserves

and

our

ANNUAL PUBLIC UTILITY ISSUE will pro-

opinions and forecasts of the nation's public utility leaders

non-industry authorities on the outlook for this vital segment of the

nation's economy.

capacity of 53 billion cubic feet

and

6.9

billion cubic feet

★

Get your

perspective

this year's prospects and the future trends of

were

the

withdrawn.
/,

The 1959 edition of

of additional acreage

public utility industry.

Reflecting higher gas purchase prices and the decline in oil

Revenues,

earnings for 1958 were $2.26 on average share compared

with $2.32 for the
of the

previous year.

Before adjusting for conversion

★

Bank

miss the

this

opportunity to advertise your Firm, Corporation or

important issue. Please

reserve

your

space

neighborhood of $2.50

in the

* improvement reflects natural

($2.40 fully converted).

The

closing date of April 15th.

rate increases that are being
negotiated with the company's industrial customers, an anticipated

;

gas

higher level of oil operations and additional sales of natural gas
to

new
a

electric power company

that are to begin this

sales combined with area

basis for

These

year.

growth should combine to provide

longer term advance in earnings.

the recent mandatory

firmness

Regular advertising rates will prevail
for space

in this important issue.

Also, assuming

import quotas on crude oil result in continued

of domestic

prices, earnings

from

this

portion

the

business should be able to increase moderately.

THE COMMERCIAL & FINANCIAL

CHRONICLE

Currently selling at about 43, these shares are valued at 19.5
times latest
•

4.2%.

report of earnings.

The $1.80 annual dividend yields

PARK PLACE, NEW

YORK 7, N. Y.

At this level the issue appears to have slightly better than

average
r'

requirements

outstanding preferred stock, earnings for 1959 are expected
before

to be

not

attraction in the gas utility field and has an ex-tra added

plus factor in its extensive oil and gas reserves.
♦Substituting for Owen Ely.

•

RECTOR

2-9570

FRANCISCO, Calif.—

company's gas reserve position materially improved last
as a result of new purchase and discoveries by the
subsidiary, Lone Star Producing Company. At the present time
the gas sunply of the «vstem is quite strong and total gas reserves

Exploratory drilling during the past

diligently

(Special to The Financial Chronicle)

the principles

have laid down as

Are

time to time?"

for

hew customers and

firm?

our

do¬

making certain that we 'know' our

(2) Any other actively operat¬
ing company which hereafter

over

checking the facts we present?
Are the approaches our registered
representatives are making to
customers
being reviewed from

ing for customers' accounts?
"(2)

securities—both

the telephone—
the best for the long-term future

member firm to consider

with respect to the buying activi¬
ties of customers:

railroad companies operated under
lease and two companies operated

moderately successful even though there was a 39% decrease
in the number of wildcat wells drilled. The company drilled 21

there'

securities,

merely
because
they are low
priced?
"(6) Is there any significant
change in our ratio of cash and
margin business?

Customers' Investing Activities

review of the business

was

in
-

The

affiliated companies.

ability

thO risk?

assume

"year both

un¬

type

make certain that such stocks are

Questions for

proxies,

approximate 3,222 billion cubic feet, of which the producing
subsidiary own some 967 billion cubic feet. The producing company
also has some additional reserves which are being sold to non-

customer

cive to deliberate investment de¬

information.

the

either

conduct

"actively operating" excludes nine

what

licit

28 active compa¬

Exchange

Securities

discuss

when

SEC

(1) All actively operating com¬
panies with common stock listed
on
the Exchange which do not
now
solicit proxies will be noti¬
fied that unless they start such
solicitation on or before Dec. 31,
1961, and agree to continue so¬
liciting proxies after that date, the
Board will consider delisting the
company's common stock,

establish¬

the

Commission

a
listed. company does so¬
proxies,- the company must
supply the stockholder with full

these

the Exchange's

change

which to base their

Funston

specifics

now

At the end of 1958 the company had maintained its conservative
capital ratios of 52% debt (including bank loans), 5% convertible
preferred stock and 43% common stock and surplus. Total capi¬
talization was approximately $276 million.

listed company.

Keith Funston

decisions.";

years the company
has expended between
$15-$20 million per year on construction of new facilities. For the
coming year, however, expenditures will be reduced to about $10'
bullion. Financing probably will be obtained through temporary
bank loans and no securities are expected to be sold this year.

publicly

formation

"."■f'1' During recent
...

that

vote, easily and conveniently, in
the
affairs
of
their
companies.
And they must have adequate in¬

promoting gas air-conditioners on
an industry wide basis the company expects that the market will
expand materially over the coming several years. In addition to
provi ing greater sales gas air-conditioning would provide a fur¬
ther advantage in increasing the load factor for the system by
using gas at a time when demand is at its lowest point.

ments.

impossible, the solicitation of
proxies in the United States by a

rations have the

quite successful, especially in the area of decorative gas lights.
In cnu year the company sold over 12,000 of these lights which
generally burn 24 hours per day during the entire year. Another
source
of growth, but one which is only starting, is the use of
central gas air-conditioning. At the present time, the company has
■

es¬

stockholders

dependence of the company on new home
construction a vigorous new product promotion campaign has
been undertaken.
During the past year the „ program lias been

icies will be made when applicable
law precludes or makes
virtually

Funston

said, "it is

owned

which

gas

apply to all other
listing applications as well.
*;
An exception to the above
pol¬

day of

listing applications and in the

future will also

ownership,"

Because of the past

"In

Mr.

oil; 7%
from sales of gasoline and 2% from sales of liquefied petroleum ^
gas. Revenues from crude oil sales declined almost 8%'because
of stringent pro-raticn by the Texas regulatory authorities. Gaso¬
line sales improved 7% reflecting enlargement and modernization
of the company's gasoline plant, and revenues from
liquefied
petroleum gas rose 2% as unit prices increased.
revenues

inal

; *

broader share-

year

sales to other utilities and field sales.

proxies. -'/

when

concerned

from the date of fail¬ to

solicit, whichever is later,

delisting.

to
agree
to future
solicitation.
Failure to meet this requirement
will prompt the Board to consider

industrial

and

average

one year

ure

steps to take about the purchase
Of securities of greater than nor¬
mal risk?
What steps should be

questions regarding customer investing

poses

The Commercial and Financial Chronicle
20

Thursday, April 9, 1959

...

(1644)

COMPANY

RAILWAY

SOUTHERN

Sixty-Fifth Annual Report for the Year Ended December 31, 1958
April 6, 1959.

Taxes for 1958 amounted to $4.17 per share

lax accruals.

compared with net earnings of $4.20

of Common Stock as

To the Stockholders

Rapid amortization on certain capital investments made

1958 compared very

Your Company's performance in

favorably with that of many other railroads and other
major industries. Our ability to control expenses was
gratifying in view of the fact that 1958 was a year during
which our wage and othalr costs continued to rise while
the level of general busitiess activity was depressed.

of 1958 showed an
encouraging improvement over previous quarters. Given
a
continued rise in business generally, without major
strikes in industry, and without loss from any unforeseen
difficulties, I am hopeful that the results for 1959 will
compare favorably with some of our better years of the
for

Earnings

quarter

last

the

share after charges, taxes and preferred dividends.

per

SOUTHERN RAILWAY COMPANY:

past.

in aid of national defense, while not chargeable to depre¬
ciation under Interstate Commerce Commission account¬

ing classifications, was allowable in computing federal

and

ahead

look

19756—

is promising.

year

The establishment and expansion of

coal-burning gen¬

erating plants producing electric power for industry is
of particular significance along our lines.
Our gross
revenues from the movement of coal were approximately
$28 million in

1958 as compared with $26.2 million in

compared with 730 in 1957.

Net
or

Railway Operating Income

crease

The

Directors join

loyalty and understanding will add to our
strength to meet the many challenges of the future.

HARRY

DEBUTTS,
President.

for

1958

the

1954-58:

years,

year as

Average

dividends

Common Stock After

Charges

Preferred Stock Dividends

$3.58

37,993,249

•

.X.

5.39

38,871,GOG

1358

Average
Ton

•

/.%•:/

34,066,710

4.78

30,254,231

4.20

13.7

Maintenance

17.3

17.G

17.3

2.3

2.2

2.0

Equipment,

Expenses

General

relatively

the latter two

wallboard.

Coal

the

railway, producing 12.1% of the 1958 gross revenues.

During 1958, a large and continuing movement to a gen-

developed. Rates have been, and are being, adjusted
to

necessary

competitive

coal

keep

Generation of

moving

creased

5.0

4.9
0.6

72.6

■71.4

69.7

Expenses.—

with

other
by

movement

electricity is the predominant
the Company's lines.

over

use

of the

Because of in¬

generating capacity brought into service during

4.3

the year,

0.7

revenue

from this movement showed

im¬

provement in 1958 as compared with 1957, in spite of the
Totals
Taxes

—

...

-i...

11.6

12.8

2.2

i-8

1.9

66.4

84.8

84.4

10.6

reduced level of business

result

Equipment and Joint Facility Rents

Totals,.—

Grand

...

Fixed

charges

1958

3.56

covered

were

times

compared with 3.98 times in 1957 and 3.67 times
average

other roads which suffered a
'

the

fixed

for

The

future

creasingly
further

remained

This

sharp reduction in export
*

for the period 1954-58.

There

activity in the first half.

in contrast with the movement of this traffic

was

charges, for maturities of

of electricity will depend

generation

in¬

The Company may therefore expect

coal.

growth in this traffic to the expanding utility

market in the Southeast.

owners

14.60 out of each dollar of 1958 operating revenues, as

Rates

Fares

and

compared with 15.20 in 1957 and 8.00 for Class I railroads
1958.

During 1958, the Company benefited from the selective
increases

rates

filed

the

with

Interstate

Commeiiee

During 1958, dividends of 5%

the Preferred Stock

continued in the total amount of $3,000,000.

were

A further dividend

net

of 700

1958, bringing

was

This dividend

paid March 13,

was

approving substantially all of

the increases sought by

the railroads.

The

declared

January 27, 1959, out of surplus

earnings of 1958.

per

By decision dated September 9, 1958,

year's report.

the Commission entered its final order in this proceeding

Dividends of 700 per share were declared on the Com¬
Stock and paid for each quarter of

last

Company's policy

rate where

of not increasing any freight

doing so would price it out of the market and

reduce its net income has met with

continuing favor by

shippers—and has been widely adopted by other rail¬
roads.

The Company will continue to press actively for

reductions

in rates
are

selected

necessary

commodities where such

to meet competition

of other

transportation agencies and where such lower rates

1954-58, is shown in the following table:

Average

distance moved

226 miles

14.4

miles

billion

13.8

Average revenue per ton mile
passengers

1.636
—

miles

and

cents

1.622

billion
cents

1954-58

efficiency in 1958.

formance

show

that

The

amounted to 18.6%

carried through

revenues

in 1958, as compared with 20.2%

Industrial Development

428 million

471

plants, all of which

3.191

2.966

tion in necessary maintenance.

our

System lines in

working

creased charges for

the service.

Capital Improvements

Improvements to the Company's plant continued to be
through the expenditure of substantial funds for
and

modern

facilities.

The

new

Inman

Atlanta, Georgia, was brought into service at

Yard
a

cost of

led

all

other

was

made

and expanded industrial

either under construction

project
other

of December 31, 1958, to $15,949,800. This, with

improvomept work added $12,868,000, gross, to the

road property

account in 1958.

Primary metals and metal-

industrial

categories,

followed

New

Equipment

by pulp and paper, electric power generating facilities,

chemicals, food and beverages, and building materials.
There
bution

were

114

warehouses

undertaken

equivalent to 10.60 out of each dollar
of gross revenue, of which 40 represented federal income

were

new

operation at the year's end.

Taxes

Railway tax accruals for 1958 were $27,030,256, a
decrease of $3,923,412, or 12.7% from the
previous year.

are

same

time, increased costs of operation may require some in¬

made

investment of $344,082,880

along

cents

At the

$3,206,000 during the year bringing the total cost of this

During 1958

278 miles

million

expected to add to the Company's income.

new

300 miles

Operating Expenses

per¬

favorably

compares

cents

Although hourly wage rates and costs of material were
again increased, operating expenses for the year were
reduced by $4,494,638, or 2.4% below 1957 without reduc¬

were

Company

1957 and 10.5% for Class I Railroads in 1958.

295 miles

cents

economy

The recognized indices of

the

proportion of gross

1,697,594

million

continued

railway operating income before federal income taxes

1,427,967

3.092 cents

with

with the leaders of the railroad industry.

billion

1.599

conducted

were

1,272,405

375

Average revenue per passenger mile

Operations

net

Business Handled

63,895,403

Tax accruals

prominent among

but

plants to produce canned baby foods and

groups are new

coal

0.6

Expenses

Incidental

Revenues

1957

Passenger

317

13.7

Operations

63,749,000

journey

operations

reduction

1958

Average

32.5

14.5

•—•••••

1959, to stockholders of record February 13, 1959.

60,766,228

32.9

♦Traffic

5.52

freight moved

Number

small

rail.

1954-58

of Way——,—

the Common Stock
;

Operating revenues in 1958 were $256,334,177, or
$10,511,973 less than in 1957, a decline of 3.9%. Freight
revenues amounted to $225,045,711,
passenger revenues
to $11,603,916, mail revenues to $11,069,197.
Business
handled in 1958 as compared with 1957 and the average

Tons

1957

the total dividends paid in 1958 to $21,119,892.

Earnings Per Share of

Taxes and

1954—$26,262,681

of the five years,

1958

Maintenance

Transportation -ii.

mon

Net Income After

——

products, food products, and building materials.

The metal fabricators and paper converters are

Commission effective February 15, 1958, as referred to in

Stock—were:

.1953,,,,.,

Outstanding growth was made in metal fabrication,

types of fuel, and to insure is continued

Income

provision of $3,000,000 each

Preferred

manufactured

where

Dividends
Net

After all charges Southern earned $30,254,231 in 1958.
Net income for each of the past five years, and equiva¬
lent earnings per share of Common Stock—computed
after

subdivisions

several

1958

products

plants, continues to increase from year to

was

REVIEW

semi-finished

Coal continues to be the largest single movement over

Ratios

ratios

debt, for capital and corporate needs and for the

Sincerely,

sponding ratios for 1957 and for the average for the five

of such

The number and type

processing plants, utilizing raw materials and

basic

coal.

in expressing warm appreciation
customers, our stockholders and our employees
for their loyal support and understanding. The continu¬

ance

the

expansion in the finished

goods industries.

crating plant and to a large cement plant, both in Florida,

any

our

of these

marked

dollar of revenue, are shown in this table with, corre¬

noteworthy that this position which Southern adopted
several years ago is being accepted more and more in
the industry.

was

consumer

operating expenses, taxes and equipment and joint facil¬
ity rents, expressed in the number of cents out of each

net income.

Our

There

and

fixed charges.

Company reaffirms its determination not to in¬
freight rate where doing so would reduce
We also will go ahead with our efforts to
attract additional traffic by endeavoring to offer reduced
rates when this is both advisable and possible.
It is
Your

equipment and joint

produce fiber

existing aluminum and pulpboard

facility rents, but before payment of interest and other

expect a continued

after deduction of

left of operating revenues

was

all operating expenses, taxes and

inter¬

basic and

production.

paper

This represents

under the $40,530,797 for 1957.

made in

progress

glass, nickel, cobalt and ammonium sulphate; and sub¬

other southern

railway operating income for 1958 was $37,476,162,

7.5%

the

stantial expansions of

year.

Net

1957, thus making coal our largest single revenue pro¬

ducer. There is every reason
growth in this movement.

the book

figures amounts, in taxes, to 600 per share of

tax

Common Stock as

what

without again viewing opti¬
mistically the surging industrial development occurring
along our System lines. It still is one of our brightest
hopes for the future growth of your Company. In 1958,
a creditable
showing was made in this respect, and is
described in this report.
The outlook for the current
cannot

For 1958, the difference between

income taxes.

Highlighting

mediate type industries are new plants to

created

for

new

plants

established,

and

large distri¬

major

expansions

by 146 existing companies, with
14,800

workers.

exceeded those of 1957 by
enue

located, 75

new

Total number of

31%.

1958,

the

Company

received

and

put

into

92—70-ton Hopper

Coal Cars

29—70-ton Airslide Covered Hopper Cars

projects

Additional System

from all developments is estimated at

jobs

During
service—

rev¬

$7,734,000.

costing $1,246,428, of which $132,560 was paid from the
Company's treasury. The remainder was financed through

Volume 189

Number 5836

(1645)

The Commercial and Financial Chronicle

...

SOUTHERN RAILWAY (Continued)
a

Conditional Sale Agreement.

spent for additions

was

for

and

railway

and

vehicles.

The amount of $1,357,506
betterments

Thus

capital account for equipment

equipment

charges

gross

the

new

equipment,

study of future needs is

now

Investment by the Company and its affiliates in
freight
since World War II has reached the
gross amount

During this period the tonnage capacity

ownership of freight

increased from 2,488,080 to

2,967,085,

The average age of the equipment
the

year

16.1

was

years

cars

hand at the end

eompared

increase.

19.3%

has been

with

over

GENERAL

INTEREST

STOCKHOLDERS

THE

are now

which

meeting of the stockholders in May,

Manhattan Bank
of Southern
a

in New York, was elected

Director

A native of Illinois and

Railway Company.

graduate of Dartmouth College, Mr. Champion began

his banking

in 1926 with the National Bank of

career

Commerce in New York.

Vice

President of the Canal Bank and Trust Company at

New

He served for

time

Orleans and for many years has been active in the man¬

tion

Equipment obligations outstanding at the end of the
amounted to $72,063,337 as compared with $82,716,-

Mr.

Champion is

Director of American

York

New

and

the

Insurance Com¬

Travelers

estimated to be $9,219,591.

are

offset—as to the effect

This will be

than

cash—by depreciation, exclu¬

sive of rapid

amortization, chargeable to operating
in the amount of approximately $15,138,000.

penses

ex¬

medium of exchange being

During 1958, 29,622 net tons

1958, the Camp Lejeune Railroad Com¬

filed its application with the Interstate Commerce

Commission for

permission to lease and operate,

wholly owned subsidiary of Southern Railway Company,
Marine Corps

compared
tons
to

with

33,640

lock to

Railroad, constructed and owned by

1958 inclusive.

tons of

The

were

laid

1957

and

35,499

ments

five-year period 1954

Company has ordered 26,723 net

railway and to create greater
both within

cation and the matter is

now

were

held

this appli¬

pending before the Com¬

and

The

and

favorably before the Commission and the Courts.

For

equipment

there

was

spent $12,509,355, consisting of $10,653,072 of
equipment

obligation installments, and $1,856,283 for
ment and additions and betterments to

bined,

new

equip¬

equipment. Com¬

these

capital expenditures from treasury cash
$25,128,885 in 1958, compared with $32,676,162
1957 and $30,533,240 in 1956. Cash dividend
payments
to

came

in 1958 were

1957

and

$21,119,892

$17,528,858

compared with $21,174,800 in
the average over the past five

The matter is proceeding

April 18,1958,

Interstate Commerce Commission

submitted

Examiner

his

His report recommended

(which

Company Plan

the

Commission

proposed report

in this case.

approval of the St. Joe Paper
Company supported), with

the

which

were

acceptable to the Company.

application of the Railway Express Agency for a

were

quickly disposed of by

Co., at

by Morgan Stanley

net interest cost to the Company of 4.57%.

•

all

;

payments, and including the receipts from

the sale of the Collateral

Trust Bonds mentioned next

in Ex Parte 210 and became effective

certain exceptions,

the

11, 1958.

petition in that proceeding was filed,

Railway Express Agency filed with the Interstate

Commerce Commission tariffs

effective January 1, 1959.
in I&S Docket

seeking

pany's

bonds

held

subsidiary

and

000

were at the annual rate of

the Com¬

income

securities of its Leasehold Estates owned

pany),

from

by the Com¬

approximately $11,317,-

December 31,-4958, as compared with
$10,332,000

at the end of

1957, and $11,277,200

the average

the past five years.

•

over

The current net fixed

the

1958 gross

charges

revenues,

are

The funded debt of the

increase

labor

by
of

per

organizations,

cost of

the

of the 1956

received

and

final

of pay became

This resulted in increased payroll

approximately $2,603,833 per annum.

escalator

Under the

provisions of the agreements, the employees
cost-of-living wage

increases

effective May 1, 1958 and 10 per hour
ber 1,

third

hour in base rates

effective November 1.

$144,099,500
1957.

1958, which resulted in increased payroll cost of

Payments and accruals for interest, rent for leased

The Company
its electronic

has continued and expanded the use of

in business use
In

addition

the

passenger revenues,
dend

Norris that he filled with honor the

the South to the best of his

the Southern and

ability in response to the

particular needs of his time. He stressed
the railway's
men

The Company owes much to his

in both endeavors.

Mr. Hanes was a

Director of the Company from 1933

until his death on March 10, 1959,
ber

known

improvement of

physical plant and preparation of younger

for leadership.

success

from 1933

be said of Ernest

traditional role of a

Southern Railway president—to build

the

Executive

and served as a mem¬

Committee

For many years the chief

1937 until his

from

executive officer of the

Carolina, and an internationally-

figure in the banking and financial

Company

native

and Trust Company, he was a

Bank

worlds. Your

benefited greatly from his wide

'•

accounting work

■

freight and

•

experience
*

LEGISLATION

the processing of payroll and divi¬

payments and stockholder records, operating work

diem

1959 amount to

Robert March Hanes.

President of the Company from 1937

and wise counsel.

anywhere.

payments to

in the year

the deaths of two of its

members, Ernest Eden Norris and

and resident of North

computer—the IBM 705 Model II—the first

in connection with

provided

(1890-1959)

The Board records with sorrow

Wachovia

lines, Equipment Obligation maturities and Sinking Fund
be

„

ROBERT M. IIANES

death.

1958, amounted to

compared with $124,012,500 at the end of

request.

ERNEST E. NORRIS (1882-1958)

40 per hour

effective Novem¬

Southern's Electronic Computer

Company outstanding in the

hands of the public at December
31,

upon

until his death on April 23, 1958. It may

equivalent to 4.4%

1957 and 4.3% on the
average over the five years 1954-58.

magazine,

Information about the railway and the
students and educators

through 1951, and a Director of the Company
Relations

compared with 3.9%

and magazine articles, a Company

Mr. Norris was

approximatly $1,879,703 per annum.
of

also made use of specially* prepared -

Company

movies and slide films.
Speakers were supplied for special groups, displays and
exhibits were provided for community celebrations, and
written and personal contacts were maintained with

rates and charges to become

These tariffs were suspended

three-year term wage agreements, with employees rep¬

defined by the Inter¬

(less charges

The

newspaper

7095, pending investigation.
Labor

resented

Company's fixed charges,

further increase

During the year 1958, under provisions

The

plans and hopes for the future.

To offset additional expenses in¬

above, the Company had in cash and temporary cash

state Commerce Commission

These ads,
highlighted various
subjects bf interest and significance to our friends and
neighbors 'along our lines—the Company's contribution
to the public welfare, its activities of the present, its
by the Southern System.

opinion leaders.

investments $60,574,000 at the end of the year.
Net Funded Debt and Fixed Charges

advertising ran in local, limited
magazines published in the

industry was also furnished to

of 3V2% in less than carload

•

After

During 1958, additional

granted by the Interstate Commerce Commission, with

curred since the

The bonds

15% increase in express rates, as reported last year, was

Mortgage Bonds which had been held in its treasury,
the successful bidding
group headed

services.

"Ties," direct mail, souvenirs,

November

well received.

our

circulation newspapers and

the Examiner's report with

approved

certain changes,

Collateral Trust Wz% Bonds in the amount of
$22,000,000, secured by an equal amount of its First Consolidated
was

In its report of November 3, 1958,

several modifications.

The

Company's offer -in July of 1958 of its 30-year

was

territory served

Express Rates

The

industrial op¬
ahead. Other ad¬
based on the theme "We want your freight in
placed in shipper publications to reach and
the freight traffic buyers who are the biggest

fast-growing South as America's

portunity-land now and in the years

designed to "humanize" the railway,
On

years.

Collateral Trust Bonds

South" campaign, ap¬
and selected
continued to "sell" the

business magazines

national

young,

Florida East Coast Railway Company as an independently

operated railroad continues.

$12,619,530.

Our "LooJc Ahead—Look

pearing

Company's interest in the reorganization of the

from its treasury cash for capital
improvements to road

structures,

part of this effort,

gram.

users

meeting all of its current expenses, taxes
fixed payments, the Company
paid during the year

aspirationsv

Southern continued to use
effectively in 1958 its well established advertising pro¬
As

influence

Florida East Coast

understanding and support,
of the Com¬

pany's activities, accomplishments and

vertising,

mission's Examiner.

and pub¬

build business for the

and outside our organization,

financial and other newspapers,

December, 1958, hearings

Use in 1958 of the Company's Financial
Resources

■i In addition

the cash settle¬

objectives of the Company's advertising

lic relations program are: To help

'58,"
T

magnetic tape plus, of course,

made.

are

net

rail for the year 1959.

new

This railroad con¬

A&EC, also wholly owned by Southern, at

Havelock.

net tons

the average over the past

Jacksonville, North Carolina.

nects with the
of new rail

of arrangements

pieces of paper—the checks with which

The

the United States Government, which runs from HaveNew Rail

been ac¬

for
magnetic tape
in computer language between the Southern, the Illinois
Central and the Union Pacific, the first three railroads
in the United States equipped with this large-scale elec¬
tronic computer. The intricate job of accounting for the
division of freight revenue by one railroad and the audit
of the settlement by the other will be accomplished by
Southern's computer "talking" with the others, the

Camp Lejeunc Railroad Company

the

industry has

railroad

Advertising and Public Relations

On August 21,
pany

the

of railroad revenue data on

the exchange

panies.

$75,513,255 at the end of 1956.

Installments of equipment debt
payments due in 1959

complished with the culmination

year

409 at the end of 1957 and

not obtainable

they were too expensive to prepare, or

Another first

annual

Smelting and Refining Company, the Discount Corpora¬

the electronic computer

New Member of Board of Directors

the

in the South.

Equipment Obligations

in the most
Many new
available to operating and traffic man¬
were not previously feasible because

efficient and economical manner.

in time to be of current use.

agement of the activities of The Chase Manhattan Bank

for Class I railroads.

years

under

cars

$170,000,000.

accomplished

reports

George Champion, President and Director of The Chase

of the System's entire

modern,
agement

required.

the average for the

1954-58.

years

additional equipment will be purchased when

way and

compared with $23,430,000

$22,826,300

$2,603,934 in 1958.

were

Although the Company has fulfilled its present needs
for

approximately $22,100,000
for the year 1958 and

freight

car

distribution and

car per

settlements, maintenance and other record-keeping

The last session of Congress
railroads

as a

devoted much time to the

transportation in¬
transportation of freight

part of the competitive

dustry." The 3% excise tax on

The Commercial and Financial Chronicle

(1646)

Financial Position at End of the

SOUTHERN RAILWAY (Concluded)

removing

thereby

to shippers to

(1)

Guaranteed

loans

aid

emergency

$23,314^860

$22,709,451

$27,845,234

Temporary investments—

40.419,573

22,184,736

48,951.202

Miscellaneous accounts receivable

19,907,887

18,669,382

18,789,066

7,269,412

9,394,457

9,539,118

667,973

736,180

721,669

that

rates

railroads

higher

should

than

special deposits

and

not

Assets

Current

their

protect

Unexpended
for

competitors,;
the

amount

private

so-called

carriage.
A revision

the

Agricultural Commodities Ex¬

and

capital
funds

serve

other

Investment

(5) Increased

authority

the

Interstate

Commerce

Less: Depreciation,

of passenger services.

donations

643,114

508,018

377,194

403,601

386,056

99,504,827

101,561,932

101,941,403

785,078,231

774.652,143

749.201,612

LONDON, Eng.—The removal of the ban on forward
dealing in gold in the London market on March 20 was
not followed
by any noteworthy expansion of such

quisition

Critical

Problems Require

Legislative

and

155,675,988

144,069,830

138,319,536

transactions. Even before that date the Bank of

ac¬

adjustments

the opinion
.

that U.S.S.R. would not

Answers

ing 1958

by Congress dur¬

Other assets and

deferred charges

$4,295,675

$4,82G,277

tolerated tor ward

than

Assets

$825,324,563

$814,608,043 '$825,798,380

step in the right direction. Southern will continue, along
of additional legislation

in 1959.

The correction

O wed

road

the

pay

same

opportunity

facilities for

(2)

those

use

interest,

and, rents

Taxes

accrued
current

$28,238,933
—■

iiabilitiesJ.——-

$27,695,597

21,171,133

$28^)1,4,333

26,672,310 V 34,350,295

1,791,260

1.599,168

lay

railroads

still

debt

Casualty and
Other

that is tax-supported.

other

liabilities

$51,221,326

$55,967,075

$229,355,739

$219,921,871

$242,553,644

6,827,194

6,497,329

7,822.494

9.613,146

7,322,577

reserves—-

and

$66",033,056'

deferred

credits

6,314,218

transact

individual

each

was

the; bank

right

down. iuIcs. regarding

mercial

2,768,428

financial interest to cover

against the risk of
Central

tion.

tax-paying

asking

broad
principles. Thus, it was permitted to
sell gold for ic/fwarcl delivery when
1hc buyer had some legitimate com¬

divi¬

Current Liabilities —1

Long-term

self-supporting,

supplies

unfairly handicapped by having to meet competition

are

companies,

CI her

business purpose.

Fully

other taxpayers

out. There

carry

lor

need

authorize

balances, to other rail¬

dends

for high¬

airways, airfields, add waterways, but do .not have

ways,

for ...mateviuls,

wages,

required to help

are

of transactions

they wished to

tion. But the bank reserved the

of the

following inequities will be stressed:
(1) Railroads still

LIABILITIES

respect of the type
no

with others in the railroad industry, to urge the passage

re¬

months, provided that the firms
-engaged in it consulted the bank in

&$4.489,040
•

Total

anything

Englancj

dealings during

cent

vitally important to the railroad industry,.

was

But it must not be considered

occur, "

plea to post publicly the forward price of gold.

$629,402,243 $630,582,215 $010,0.82,076.

The transportation legislation passed

in forward

engage

delivery if it thought, gold devaluation would
and

amortization,

and grants,

or some

164,919

com¬

would not shift from London to Zurich

other market than London. Other comments made include

re¬

Investment in road and equipment

Commission to order adjustment in intra-state rates and

abandonments

affiliated

that they
$2,245,480

—j

panies and others

restrict forward gold transactions here so

suggests
$2,897,400

Insurance and other funds--

emption.

Dr.

large scale, would lead to reimposition of the ban. Re¬
garding the ineffectiveness of such a ban, the columnist

Sale

acceptance

and

market.

$73,694,206 $105,346,309

equipment

Sinking,

(4)

of forward dealing in gold in the London
Einzig passes on the reminder that resump¬
tion of do!Iar-scare, leading to speculative activity on a
opening

disbursed

delivery

upon

price rise and the fears of flight from the dollar prompted

contracted

Conditional

under

Agreements

A limitation

(3)

$91,579,705

—

balance

of U. S. gold

Writer believes decline in the expectation

prepay¬

ments and other current assets

required to maintain

merely

necessary

—

supplies

Working fund advances,

A directive to the Interstate Commerce Commis¬

(2)

By PAUL EINZIG

and

Material

for railroads in need.

sion

Average
1954-1958

31, 1957

Cash

provided:

short term

for

December

ASSETS

perform their own transportation service.

In 1958, the Transportation Act

Entry Into
Forwaid Dealing in Gold

5 Year

31, 1958

artificial' incentive

London Market's

Year

December

repealed

was

9, 1959

Thursday, April

...

dollar devalua¬

banks

others

and

who

anticipated future receipts of dollars
Einzig
were
permitted to sell these dollars
against
gold
for
future
delivery.
Likewise firms with contractual obligations under a gold
clause were entitled to cover their risk.
.;
Or.

Paul

Depreciation

(3)

cent

per

World War

travel

passenger

discourge

use

tax

imposed

of public carriers

ment

of road

leased

1—

panies

con¬

from

and

equip¬

other

5,857,1.33

5.443,310

5,274.043

$299,576,420 $297,442,731

$328,805,814

Total

in. passenger traffic.

Railroads

bear

the

full

cost

exceed benefits under
programs

SHAREHOLDERS'

V">-

•,

•.

to share in
when

'■
g v
.!A": •"<"
''.jN
*;,:7r'
deprived of equal opportunity

■

Railroads still

(5)

C ONSISTING

covering other workers.

are

Capital Stock:
.•

transporting agricultural commodities, which

transported

by motor

carrier

exempt

are

from

Capital

--..w.:.—

$60,000,000

$60,000,000- $.60,0C0.00C

129,541,300

129,742, C 6 0

Vitally

needed

modernization

railroads

con¬

which

tinues to be frustrated by unsound tax
policies governing

the

depreciation of plant and equipment.

Financial

Results

for

the

Total

r1-A—~

largely

;!■'•••

•

■

'.i

■'

■■

' '

■=;

,,:V

received

In 1957

freight, passenger

and
a

The

total

maintaining

Federal,

oil—-;

state

and

local

Leaving

balance of_

•and

use

excess

joint

the

;by » from those
Leaving

income

operations
Other

facilities

l'roni

derived

and miscellaneous items

Intercsc

total

funded

equipment
paid

for

income

of—

debt

obligations,

190,582,082

184,532,771

$70,246,733

$76,264,068

$80,379,015

leased

railroads

Resulting in

net

income

30,953,668

develop the territory and to foster

$45,310,400

33,996,322

people and its

opportunities;

;

the

anxious

were

removal

with
as

the

Dollar Prompts Move

of the

proceed with

wave

ban,-because the de¬

year:entirely

distrust

result of devaluation

the

dollar

rumors.

The

furnish

4,779,603

5,045,610

$37,476,162

$40,530,797

$41,337,083

safe, economical and ade¬

territory where the "Southern Serves
the

South";

5,388,149

$42,919,924

$45,918,946

treat

fairly

whose work

5,730,689

To pay a

the

men

and

women

keeps the railroad going;

fair return to the

11,852,236

13.578,077

$30,254,231

$34,066,710

$33,489,695

ban

has

been

•

the

property.

the

removed

dealers

similar to those

are

offered '

by Zurich. This apparent inconsistency is explained by'?
(he

fact

there

that

the

when

time

evidence

the

ban

was

removed

noteworthy flight from
to
a
halt, and the
change was timed in a way as to ensure that it is not
followed by large speculative operations.
the

was

That

dollar.

any

movement

came

Ban

The small number of specialist firms engaged

$47,067,772

12,665,693

the

that

position to offer facilities

Reimpose the

London.

quate railroad transportation in the
5,740,315

own

Now

5,443.762

the -dollar, or for Americans who wanted to
against the devaluation without having to use
capital resources. American citizens are, of
course, in a position to hedge by buying and holding
gold abroad. But that would mean tying down capital
resources and many Americans wanted to hedge while
retaining the- use of their funds. To that end they bought
gold for forward delivery in Zurich. The bank of England was opposed to the extension of such facilities in

$46,382,693

and

ji.

hedge
their

faith in the South, its

rents

of—

•

one

again it.

CORPORATE CREED

and

miscellaneous deductions totaled

Fear

lor forward gold facilities arose last

in gold
operations were exhorted by the Bank of England to
use their newly-granted freedom with discretion. There

is,

course,

dollar
Making

under/th^

thing the authorities would have liked to do was to
provide facilities for those who wanted to speculate

in-

was-.

to lose :,even-

last

OUR

vestments in stocks and bonds
,

whole stood

authorities

British

mand

railway

from

$825,324,563 $814,608,843 $825,798,380

sources

been

exceptionally large transactions, and quite another thing
to be able to proceed with the transactions free-of any
formalities.
A
'<•••-■

The

received

of-.„—_—

income

$496,392,366

caution rwith

186,087,444

$43,216,477

amount

have

27,030,256

The Company paid to other companies for hire of equipment

But. London

taxes

required

-forward

would

too rigid application
dealing in gold. This

flexiblb^iiitcrprctatioii oT the official ban."For it is;

that developed

the

thing to have to apply for permission, if not for each
transaction, at any rate for borderline cases, or for

■■■■*'■"

balance from railroad

operafions

^304.168.778

rev¬

railroad

' 2 805;564

in connection

property and of operating the

Leaving

functions

gold consti¬

•••' ■

Equity— $525,748,143 $517,166,112

$250,334,177 $206,840450 $264,911,780

cost

miscel¬

of_

enue

•

1954-1958
.
.

laneous operations

ban

market

under

offering

from

official

the

-of

London

the

which

5 Year

lrcim,

London's

sential part of

Average

Company

The British authorities
with

interfere

•

In 195);

This

•

-2,956,913

324,189,188

■

Shareholders'

Equity
■

332,814.162

•

property

and

the dollar.

1 ^ 9,74 8,6110

invested in

Shareholders'

Liabilities

Year

•»

3,i08,038

Unappropriated

desire

purposes

278.0110 026?L364'

284,643 :

Income:

Appropriated

(6)

prevented

surplus

Retained

ities
I

Common

regulation by the Interstate Commerce Commission;

legitimate

that function. Rival centres—
especially Zurich—were able to offer foreign firms facil¬

EQUITY

Preferred

for

world banking centre. Free dealing in

tutes

OF:

reconciling the

to avoid the development of large-scale

not

anxious

facilities

against

speculation
as

of-

unemployment insurance benefits for employees that far
:

Liabilities

were

must continue

provision

with the desire

tinues—14 years after the war—to accelerate the decline

(4)

the

for

aimed at

informal rules

Such

com¬

owners

scare,

always
in which

inundated

with

conditions

there

dealers

possibility

case

demands
would

the

for

London

forward

nothing

revival
market

the'

will

gold. In

existing

prevent

London

from

meeting the demand, beyond the warning«
be
speculative activity on a large
scale the ban might be reimposed. This could easily be
done, for the Bank of England has retained its legal

that

should

there

Continued

page

Volume 189

Number 5836

...

The Commercial and Financial Chronicle

(1647)

NORFOLK and WESTERN RAILWAY
The year 1958

of major gains in the

was one

operating efficiency and profit-making potential
of Norfolk and Western

Despite

per

Railway.

cent drop in

share, second highest in history.

$7.57

was

Net income

property.j N&W

was
or

breaking profit of $44.5 million.

low operating ratio—65.45 per cent; or

down to net income such

in its

And

of the best tests of operating

1,058

measures

totaled

gross

ton miles

per

man-hour, which

the transportation output of

lion-—equal to $6.36

CONDENSED

Total taxes

per

share of

$35.8 mil¬

were

common

stock.

owners

The

of 15,505

N&W

persons.

adjustment preferred

All in
and

industry.

employed

stock and

per

Western,

was a

year

good

year

progress.

for Norfolk

Always

Merchandise.

...

ahead in

1959

with

added

determination and

aggressiveness.

I.,
..,,

Passengers..
Mail and Express

•

Equipment and loint Facility Rents—Net
Dividends, Interest and Other Income—Net.

1958

1957
'\

f........

Miscellaneous Revenues

■

>...

;

$127,567,944
62,710,117
2,914,884
4,651,972
6,101,379
7,857,929
3,887,209

$166,310,732
69,404,171
3,220,145
3,828,970
8,369,074
12,348,422

215,691,434

265,350,781

77,376,650
39,770,701
16,343,498
16,038,907
2,937,780

94,056,818
62,306,275
14,970,836
17,142,655
1,988,438

152,467,536

190,465,022

63,223,898
19,722,000

74,885,759
30,350,000

43,501,898

44,535,759

$7.57

$7.75

1,869,267

Expenses
Payrolls
Material, Supplies and Other Expenses
Depreciation on Transportation Property
Taxes, other than Federal income taxes.
Interest

Indebtedness

......

Earnings before Federal income taxes
Federal income taxes

Net Income

Earnings

per

share of Common Stock.

......

healthy, vigorous carrier, N&W is moving

stock.

all, 1958

From transportation
Coal and Coke..

at the end of the year

INCOME STATEMENT

Income

mile

newest and most

Company

paid dividends

on common

employees.

Working capital increased from $42.7 million in
1957 to $55.2 million.

29,601.

average

both train tonnage and train speed

measures

—or

efficiency since

fixed

length, and when dieselization

Registered share

history has the N&W equalled its 1958

record of 87,653 gross ton miles per train-hour—
one

to ; $46.4

cars per

modern fleet of diesels in the railroad

brought

large percentage of

total operating revenues—21.33 per cent.
never

freight

owns more

completed in 1959 will have the

Not since World War II has1 the N&W had such
a

amounted

of line than any other U. S. railroad 250 miles

$43.5 million, only 2 per cent less than 1957's
record

expenditures

million for additions and improvements to

gross revenues

below 1957, last year's net income

Capital

million—$34.1 million for equipment and $12.3

The Commercial and Financial Chronicle

(1648)

Continued jrom page

Sums

behind

has not been eliminated, but

it has

reduced.

been

the

For

libers—nylon,

newer

Dacron, and the other non-cellulosics—the picture is very differ¬
ent. These fibers nearly doubled
their

market

the

four-

same

period. But the staggering
thing is the amount of new ca¬
pacity that is expected to be con¬
structed by the end of next year,
year

1960.

is scheduled to reach an

equal to nearly four mil¬

amount

If the non-

bales of cotton.

lion

nianufacfurers
really
iell that much fiber, they will
move ahead of rayon in the total
size d£ their market, when ex¬
pressed in cotton equivalents.
Where are they going to find

1956-57, the year in which
we exported 7.6 million bales, cot¬
ton consumption in the Free For¬
eign World rose more than usual,
and
production actually had a
slight decline. When we consider
the following season, 1957-58, we
find quite a reversal. For the first
time in
15 years the total con¬
sumption of cotton in the Free
Foreign
World
declined.
It
dropped half a million bales. And
production had the first substan¬
tial increase in three years,

this

all

for

market

new

ca¬

lot of it the answer
may be nowhere.
The tire cord
market is involved, and compli¬
cates the picture.
But any way
For

pacity?

that

look

this

thing,

to foreshadow a terrific new

seems

battle

competitive

some

Last

markets.

cotton's

for

the

year

producers spent
about $30 million for promotion.
The tremendous increase in this
fiber

man-made

activity is one of the important
developments of the past year —
and

of it seems ahead. These

fibers

are

far higher priced than

So far as we can tell from

cotton.

their

research,

market

extentive

our

And

now

midway

are

1958-59, and we find that both of
these

have

been

current

esti¬

trends

adverse

the

continuing.

mates prove true, the consumption
of
cotton in
the Free Foreign
this

World

season

production

will

exceed

two

million

only

bales.
to the

world

free

communist

also
have
an
important
bearing upon our exports, but this
aspect
of
the
problem
is
not
treated
here.
Consumption and
world

in the Free Foreign
World provides the main explana¬

production
tion of

our

current outlook.)

When the fundamental forces of

consumption

and

favorable

production are
they bring with

us,
another favorable

them

pro¬

But
in

and

prices is traceable to the situation
in
consumption and production.
All
our
present export trouble
stems
fundamentally from
the
that

fact

latter

two

these

points, consumption and produc¬
tion, the record of last season and
this

has been unfavorable.

season

In order to make our

ket

export

back

problem

and

factor

nature: They
to hold more,

a
very
temporary
make people want

should sweep over the

come

when

matter

have

incomes

foreign

halted.

whether

ask

competition from other things ex¬
plains the decline in cotton con¬
sumption.

abroad

keep foreign production
increasing so fast as foreign

bales

thing that we certainly
must take seriously is the rising
volume of cloth exported from the

production

ing

First, then, we shall look fur¬
ther into production.
If current
estimates prove correct,
foreign
free world production this season
will be up by about 940,000 bales
over last season.
It is important,

within

the

com¬

It is being estimated that
production
of
extra-long
staple cotton in Egypt, Sudan, and
elsewhere will account for 700,000
bales of this increase.
In India,,
where the production is largely
of the harsh, short Indian types,
an increase of 220,000 bales is ex¬
pected.
By
subtracting
these
amounts, we find that virtually

increase

net

estimated

for

the upland types of cotton which

comprise the principal production
and exports of the United States.
is

fact, however, that the
upland cotton,

acreages planted to

c o

are

o n

and

coming

consumption

and

One

than

cotton

looked

halted.

for

the present

tremendous

some

It's difficult to find a
answer in the experience
brief period, especially one
which has been so dominated by
world textile recession. I do not

had

pretend that anything in this an¬
alysis offers any single clear guide
as to what the sound export price

very

level would be. But here is

threats

our

of this

turn

can

basic

the

total trend

upward. Our in¬
declining. The
of our apparel and

trend

household

which now
up
three-fourths; of the
thing, is upward, and we

make

whole

markets,

face the future with

lot of

com¬

petitive strength here. The washand-wear fabrics are helping us.
A lower-price next season should
give us a new margin of competi¬
tive strength at many places up
and down the list of

our

markets.

The economy promises to keep on

growing, a higher fraction of the
population will be in the age
groups which use the most tex¬

tiles, and trends in retail credit
promise a better break for soft
goods, especially textiles. Cotton
consumption has a great chance
to
begin a substantial upward
trend.

would

have

far

greater chance with a bigger pro¬
gram of promotion and research.
Turns to Export Market

Now

for

steep loss in

our

analysis of
exports of

the
raw

cotton.
To

begin with

the

tals, we always have
amount

cotton

fundamen¬

to look at the
that is being

consumed abroad.

tion at
Free

consider cotton consump¬
the spinning stage in the

Foreign

decade

ended

find that there

World
with
was

during the
1956-57, we
a strong and

steady upward trend.
an
or

As for the net producing coun¬

are

There

was

increase of eight million bales,
65%, in the decade. Against

this, however,

have to place
for comparison the picture of ex¬
pansion
in
foreign
production
throughout the free world.
This
also was tremendous. The excess
we

of consumption over production is
the thing that counts for U. S.

this
exports,
and
greatly from year to

has
year.

varied

tries, they naturally have a feel¬
ing of urgency about selling their
cotton in this situation.
attitude

that

some

son

with

wanted
As

hold—-a

prices
foreign
certain

all

down.

are

upland

hundred

few

L' ;

more.

result

And this

aggravated by the fact
of them began the sea¬
more
stocks than they

thousand bales

this, foreign

Normally

the

have

cottons

price

relationship to the
price of U. S. cotton, and
they tend to follow the U. S. price.
In the year 1955, we faced a new
situation. Foreign production had
risen rapidly in relation to for¬
eign consumption.
There were
huge raw stocks in the United

export

States.
came

Suddenly

the

world

convinced that the U. S.

be¬
ex¬

port price

was going to be lowered,
foreign cottons dropped clear

and

million

bales

the

The

season.

were

Foreign Frices Are Down

market

dustrial losses

this

time, they ask?

big things to make us hope

some

that

the absolute minimum of stocks at
this

its

West

region
(where new land was brought
under
irrigation)
and • in
the
Matamoros region (where irriga¬
tion water was far more plentiful
at planting time than it had been
a year earlier).
Surely the prices
of a year ago may have been an¬
other encouraging factor, but the
main thing to be said about the
prices which prevailed later in
the season is that they seemed to
have brought serious distress to

these things are affected to some
extent by the export price of our
cotton, and a little tilting of either
trend, one way or the other, could
make

in our average exports
the next three to five years.

—where the weather
vorable

was

very

fa¬

for

plantings this season
Brazil, where the gov¬
ernment. js. trying to encourage
cotton
planting because
of the
very poor state of the coffee mar¬
in

—and

ket.-

effort to find markets before the

There is no convincing evidence
yet that we are back in another
period of headlong * and' deeply

U. S.

price

came

down.

Then the

U. S. Government export
program
took

effect, and the price

tion firmed and returned
normal

relationships.

situa¬
to

But by the

middle of last year, 1958, we were
back in another period with much

resemblance

to 1955. The spread
between foreign consumption and

produtcion
The

was

supplies

sharply declining.
seemed

super¬

abundant again.

Again there were
anticipations that our government
export

sale

price would be re¬
duced.
Again we have had for¬
eign prices breaking away from
the U.

price in reflection of

panicky desire to sell within a
limited time. In this price situa¬

tion, we have been cut very
largely out of the export market
in

the

were

current

back in

year, just
1955-56.

for

■>'.

Another factor with real impor¬
tance is the promotion of cotton
;

consumption in foreign lands. A
rapid and very gratifying increase
in
such
p r o motion
is being
achieved, and we can be sure that
it will have a significant effect
upon the
trend : of foreign con¬
sumption. :
/

Decline

But

please notice this: Across
the past decade total spending up¬
on all consumer goods and
serv¬
ices " in
the United
States, ex¬
•

difference of millions of

bales

And
Our

another factor is research.

chance to

be competitive

in
constant dollars, has both quality and price across the
increased by about 36%.
But in years of the future is gciared to
this country, where incomes are our lead over competing countries
the highest and are trending up¬ in the field of technology.
They
ward, the total consumption of are moving forward in technology.
We
cotton
in
have to move faster.
wearing apparel has
risen by 43%.
It is not the ap¬ V~ Through promotion, price, and
parel markets that have failed to research, we can widen the spread
rise.
Our
biggest trouble
has between foreign consumption and
the Mexican cotton economy. This,
been
that while these
markets production and thereby add per¬
combined ; with
excessively wet.
rose, our great industrial markets
haps a half million bales a year,
weather, is said to be discourag¬ declined. For the
great bulk of on the average, to our annual
ing plantings quite significantly the
foreign world, all the evidence level of exports until it rises to
for the season ahead.
suggests that clothing, is the dom¬ six, seven, eight million bales and
The
other "most
notable
in¬ inant use for textiles today and
more.
creases in acreage are in
Uganda that the industrial uses are rela¬

from their normal relation¬
ship to U. S. cotton. They were
competing with one another in an
away

Blames Industrial

increases

Coast

basic

Our exports depend on a rela¬
tively small margin between for¬
eign
consumption
and
foreign
production. The trends of both

production

main

fact:

domestic market, but we also have

textile

of any

the

reliable

find that
rayon has declined fully as much
as
cotton, or a little more, and
that rayon producers all over the
world
have been having a bad
months,

for

rapidly?

much
interested in seeing what another
year's experience would reveal.
As we look back now upon the
were

materials

market, and will it keep foreign
production from expanding too

ton, but in" 1956 and 1957 this
tendency for rayon to gain faster
been

other

taking our cotton in. stock. But when these
as
distinct
from
the
estimated
merits of two factors turn against us, they
volume of production, will be up time.
the fibers, or on the present state make people want to hold less
this season ' in the
of consumer preference, with al¬ stock. Right now, with consump¬ substantially
Finally, among our competitors,
Foreign Free World. While the we have to think of the
lowance for relative prices, are tion down and production up, our
competi¬
average yields per acre are down, tion of other
goods and services.
quite
limited.
They
must
be customers in Europe and Japan
acreages are up.
The estimated We are
keenly aware that textile*
planning to rely very heavily see what looks like a tremendous
increase
is
roughly 1.2 million as a whole have not
kept up with
upon the gimmick effect that can supply of raw cotton seeking mar¬
acres, or 5%.
the total growth of the American
be obtained with new fibers, mag¬ kets.
They look forward to the
Where and why has acreage in¬
nified enormously through adver¬ next season, and they
market, and we have been fearful
are
im¬
creased like this? The most no¬ that as any nation rises to a cer¬
tising.
;
pressed,. rightly or wrongly, with
At normal tain level of income, the percent¬
the idea that the United States is table case is Mexico.
Sums Up Bullish Factors
yields for the two seasons, Mex¬ age of its spending for textiles has
going to grow quite a big crop.
All in all, we face, as usual,
ico would have added a quarter of an inevitable
tendency to drop off.
Why should they hold more than
prospects

markets

exports and the current

important factor in this
the price at which we
export cotton. Will it keep us
competitive
against
rayon
and
will

staple production month by
month in the Foreign Free World.
For a long time rayon had a much
stronger upward trend than cot¬

for

Question of Export Price

plastic
fast in

rayon

latest

with its

will depend on whether con¬
sumption rises faster than produc¬
tion, and how much faster.

some

line

If we look through this textile
cycle to the long-range trend of
foreign consumption, it still seems
likely to be headed on upward.
Our export market through the

parts of it. One year ago we
however, to analyze this increase
made a careful comparison of fig¬
in terms of the types of cotton in¬ ures
reflecting the relative trends
the

trend, and by doing so it
out¬

years

non-cellulosics

the

it could
consumption

ideas about stocks.

Among competitive materials,
rayon is still by far the big one in
most of the foreign world, though
materials

level

look

dred thousand bales of

munist bloc.

foreign cotton

could make over the current

future

con su motion.

Free World

short time.

normal

to date

requirements are likely to be
fully supplied by rapidly increas¬

world.

Whenever this happens,

raise

communist countries, particularly
China.
While reported increases

ton

real

the Foreign

within

One

world go on rising, the raw cot¬

unless

This
cyclical
decline is
the
main, basic cause of our current
export trouble. When the textile
cycle turns up, it could rise by
an annual rate of several million

been

to the nub of the

funda¬

from

long

year, or that the basic forces be¬
hind the long-range upward trend

stimulate

fact that the

the

mental

the consumption of cotton

depression

ing by some 40 or 50 million per

represent only a few hun¬
cotton, the
potential may be enormous.
If these cloth exports to the free

mar¬

in a sound way across
the years of the future, we come
grow

volved.

(The net exports of cotton from
the

stocks

situation

the

cellulosie

current export losses:

our

foreign consumption, foreign
duction, stocks, and prices.

Brighter Economic Outlook
May be at Hand for Cotton

Up Basic Problem

We have examined four reasons

Thursday, April 9, 1959

...

•

' *

pressed

Thus we see strong
evidence here that there is no end

tively small.
in

sight yet for the amount of tex¬
tiles that-people will buy all over
the world—especially if they are
promoted.

Form
WEST

Talmage

Talmage Wilcher
PALM

Wilcher,

BEACH,

Fla.—

Inc.

has been
formed with offices in the Harvey
Building to engage in a securities
business. Officers are Talmage S.
We can see no evidence yet that
Wilcher, President; B. Lyle Flet¬
the long-term upward trend of
cher, Jr., First Vice-President,
cotton
consumption
has
been H. C. John
Russell, Second Vicehalted by
any
reversal of the
President; A. G. Wilcher, Secre¬
forces which have been operative
tary-Treasurer; and M. C. Mitch¬
,

Blames Foreign Consumption

alarming
expansion in
foreign
production, such as we had
during the Korean War period or

cotton
in the

of,

season

that

seem

of 1954-55.

It would

the- main- explanation

current export trouble is
foreign production at all,
foreign consumption. It is
by no means unusual for produc¬
tion- to -increase} but it- has been
most unusual
and for
a
long
time unheard of—for consumption
to decline
in the Foreign Free
our

not

but in

—

World from

one

year

to the next.

We need-to-ask every- question we

about .why. this, decline .has

can.

been

this
I

occurring

last

season

and

impressive

evi¬

season.

know

dence

that

the population

foreign world has stopped

of the
grow¬

of population, in¬
ell, Executive Secretary.
competition. It becomes
apparent that the sharp and sud¬
Time Sq. Option Formed
den drop-off which we have been
Times Square Option Co. is en¬
having last season and this season
can
only be explained by one gaging in a securities business
thing: A widespread recession in from offices at 33 West 42nd St.,
textile operations throughout the New York City. Partners are Mir¬
world, based on inventory adjust¬ iam Grohman, General Partner,
ments and on recessions in general and Milton
Mogil, Freida Lipton,
business. The general slide-off in Helen
Miller, Mildred Landerstextile operations in the Foreign
burg and Evelyn Kraines, Limited
in

the

areas

comes, or

Free

World

has

been

since early in 1957. The

underway

Partners,

available
statistics indicate rather clearly
With Gallagher-Roach
that
it
continued
through the
(Special to The financial Chronicle)
,
third quarter of 1958.
Has the
turn come in the fourth quarter
COLUMBUS, Ohio
Donald
or in subsequent weeks? We can't H. Bradley is now affiliated with
be sure. We can only say that it Gallagher-Roach
and Company,
is unlikely to be postponed very 16 East Broad Street.

Volume 189

Number 5836

The Cofntnefcial and Financial Chronicle

New York

Gene

Security Dealers Associat

Statter, Mabon A Co.; Paul Windels, Securities A Exchange Commission; Frank Dunne, Dunne
&

Co.;

Edward

C. Werle,

Johnson &

Wood, Chairman

Hal Murphy and Edwin L. Beck, The Commercial A Financial
icle and
Standard A
Poor's Corporation

the

Chron¬

New

Arthur Bisgood,
American Stock

Abramson,
General's

Samuel

Hirehowitz,

Carl

Office of the State of New

Madonick,

and

David

Clurman,

York; David Morris, David Morris

Mitchell

Company;

Jfim

tdwndf,

Baptem,

Dr. kcMMrth mtsaimdk Cmmmp
Mat

1|*
Ot

Incorporated

air of

Attorney

A Co.

Joseph Smith, Newburger A Co. (Philadelphia); Barney Nieman, Carl Marks A Co., Inc.; Jim
McFarland, Stroud A Company, Incorporated (Philadelphia); Bob Kullman, John J. O'Kane, Jr. A Co.

Abelow,

(Philadelphia); Walter Kane, Shear—m, Hemwmitt A €*.« Jt-Jfc

Registrar A Transfer Co.; Edward T. McCormick,
Exchange; Harry R. Amott, Amott, Baker A Cm.

Bernard

Herb

York Stock Exchange

Jchn
Bailey, North-aotem Umomahf
Corpo. a'.ion; Col. Oliver J. Tr-otee, Traster, 1«mgm A €a - 0*
•(
Corporation; Edward A Wmmhan, Geaamet- AMUim \
Professor

William

Rieber, Chase

Manhattan Bamhi
«#mw*
iMt Iwiww.

Chase Manhattan Bank;

The Commercial and Financial Chronicle

(1648)

vv.■;;;■ ■■ v"■

Sums

Continued from page 13

Up Basic Problem

We have examined four

behind

Brighter Economic Outlook
May be at Hand for Cotton
In

has not been eliminated, but

it has

reduced.

been

the

1956-57,

year

in which

exported 7.6 million bales, cot¬

ing by some 40

foreign consumption, foreign pro¬
duction, stocks, and prices.
But
the

situation

stocks

fact

fundamentally
that

from

these

plains the

cellulosic

If the

really
fiber, they will
ahead of rayon in the total

move

much

their

size

non-

manufacturers

that

market, when ex¬
in cotton equivalents.
Where are they going to find

pressed

all

for

market

this

new

ca¬

lot of it the answer
may be nowhere.
The tire cord
market is involved, and compli¬
cates the picture.
But any way
that we look
at this
thing, it

For

pacity?

to foreshadow

seems

competitive

battle

terrific

new

of
cotton's markets.
Last year the
man-made fiber producers spent
about $30 million for promotion.
some

in this

increase

tremendous

The

for

activity is one of the important
developments of the past year —
and

of it

fibers

are

So far

cotton.

ahead. These

seems

far higher priced than

tell from

as we can

cxtentive

market

research,
prospects for taking our
markets on the present merits of
our

their

the

the present state
of consumer preference, with al¬
lowance for relative prices, are
quite
limited.
They
must" be
planning to rely very, heavily
upon the gimmick effect-that can
be obtained with new fibers, mag¬
nified enormously through adver¬
tising.
./V./? 7r
fibers,

or on

Sums Up Bullish Factors
in all, we
tremendous

All
some

face,

big things to make

that
of

this

turn

can

market

dustrial losses

our

whole

the

lot of

com¬

and-wear fabrics

are helping us.
price next season should
give us a new margin of competi¬
tive strength at many places
up

A lower

and down the list of

our

markets.

The economy promises to
keep on

growing, a higher fraction of the
population will be in the age
groups which use the most tex¬
tiles, and trends in retail credit
promise a better break for soft

goods, especially textiles.
begin

trend.

Cotton

has

a
great chance
substantial
upward

would

have

far

greater chance with a bigger pro¬
gram of promotion and research.
Turns to Export Market
Now

for

steep loss in

our

analysis of
exports of

the
raw

cotton.

begin with the fundamen¬
tals, we always have to look at the
amount

cotton

that

consumed abroad.
If we consider cotton

being

consump¬
tion at the spinning
stage in the
Free Foreign World

during the
decade ended with
1956-57, we
find that there was a
strong and

steady upward trend. There was
an increase of
eight million bales,
or
65%, in the decade. Against
this, however, we have to place
for comparison the
picture of ex¬
pansion
in
foreign
production
throughout the free world. This
also

was

tremendous.

The excess

of consumption over
production is
the thing that counts for U.
S.

exports,
and
this
greatly from year to

production are
us, they bring with

another

favorable

factor

nature: They
to hold more
But when these

very temporary
make people want

cotton in stock.
two factors turn against

us, they
people want to hold less
stock. Right now, with consump¬
tion down and production up, our
customers in Europe and Japan

make

what looks like

see

tremendous

supply of raw cotton seeking mar¬
kets.? They look forward to the
next
season,
and they are" im¬
pressed, rightly or wrongly, with

estimated

distinct

from

future

Foreign

this

for

Free

the

While

the

season

World.

potential may be enormous.
cloth exports to the free
world go on rising, the raw cot¬
ton requirements are likely to be
fully supplied by rapidly fncreasr:
ing production within the com¬

are

increase

acres,

Where and why has acreage increased like this?
The most no¬

looked

cotton

experience
look

would

back

now

quite

big

crop.

than

time, they ask?

The

season.

in "the

were

main

West

Foreign Prices Are Down

has
year.

varied

(where

As for the net producing coun¬

tries, they naturally have

feel¬
ing of urgency about selling their
cotton in

this situation.

And this

attitude is aggravated by the fact
that some of them began the sea¬
son
with more stocks than they

wanted

hold—a

thousand bales

As.

few

hundred

more.'

land

new

was

under-

the

In the year

for

have

brought

the

in acreage are in Uganda
—where the weather was very fa¬
vorable for plantings this season

States.

—and

came

Suddenly

the

world

convinced that the U. S.

port price

be¬
ex¬

going to be lowered,
and foreign cottons dropped clear
away from their normal relation¬
ship 1o U. S. cotton. They were
competing with one another in an
was

effort to find markets before the
U. S. price came down. Then the
U. S. Government export
program
took

effect, and the price situa¬

The

The spread

produtcion

was sharply declining.
supplies
seemed
super¬
abundant again. Again there were
anticipations that our government

'The

v''

•

There is

Industrial

■ -

of.

season

current

our

export

tion- to

duced.

increasej but it has been
and
for a long
time unheard of—for consumption
to decline
in the Foreign Free

eign

World from

export

the

sale

price would be re¬
Again we have had for¬
prices breaking away from

most

unusual

—

one

year

to the next.

price in reflection of a
panicky desire to sell within a
limited time. In this
price situa¬

We need to ask every question we

tion, we have been cut very
largely out of the export market

this

the

were

current

year, just
back in 1955-56.

about

cap

why. this. decline has
occurring last season and

been

season.

know

rose,

the

43%.

the

upon

sumption.

And another factor is research.

Our

ex¬

is not the

that
our

while

these

For

the

markets

great

industrial

uses

bulk

Thus

are

see

our

chance

competitive in

the future is

lead

gqared

over

We have to move faster.

Through promotion, price, and
we can widen the spread

ap¬

great industrial markets

evidence here that there is

research,
•

between foreign consumption and

thereby add per¬
half million bales a year,

production and

haps
on

the

level

average,

exports

to our annual
until it rises to,

sixrseven, eight million bales and"
more.

;

rela¬

strong
no

Form Talmage Wilcher

end

WEST

PALM

BEACH, Fla.—
Inc. has been
Harvey

sight yet for the amount of tex¬
tiles that-people will buy all over

Talmage

the

formed with offices in the

world—especially if they are
promoted.

Wilcher,

Building to
business.

engage

Officers

securities

Talmage S.
Wilcher, President; B. Lyle Flet¬
the long-term upward
trend of
cher, Jr., First Vice-President,
cotton
consumption
has
been
H. C. John Russell, Second Vicehalted by
any
reversal of the
President; A. G. Wilcher, Secre¬
forces which have been operative
in
the areas of population, in¬ tary-Treasurer; and M. C. Mitch¬
ell, Executive Secretary.
comes, or competition. It becomes
apparent that the sharp and sud¬
Time Sq. Option Formed
den drop-off which we have been
•

.We.

can see

evidence yet that

having last

season and this season
only be explained by one
thing: A widespread recession in
textile operations throughout the
world, based on inventory adjust¬
ments and on recessions in general
can

business. The
textile
Free

general slide-off in

operations in

World

has

the Foreign

been

underway

are

Times Square

gaging
from

Option Co. is en¬
securities business

offices

West 42nd St.,
City. Partners are Mir¬
iam
Grohman, General Partner,
and Milton Mogil, Freida Lipton,
Helen Miller,
Mildred Landersburg and Evelyn Kraines, Limited
Partners,
at 33

New York

since early in 1957. The available

statistics
thatthird

that

be sure that
significant effect
trend of foreign con¬

have

competing countries
in the field of technology.
They
are moving forward in technology.

population of the
foreign world has stopped grow¬

dence

we can

will

country, where incomes are
the highest and are trending up¬
ward; the total consumption of
cotton
in
wearing apparel has

impressive

achieved; and

this

evi¬

exports for

years

turn

average

both quality and price across the

tively small.

It would

trouble is
foreign production at all,
but in foreign consumption. It is
by no means unusual for produc¬
not

our

serv¬

States,

difference of millions of

in constant" dollars, has
by about 36%. But in

that the

Consumption

of 1954-55.

United

world, all the evidence
suggests that clothing, is the dom¬
inant use for textiles today and

convincing evidence

the- main- explanation

the

declined.

alarming
expansion
in
foreign
production, such as we had
during the Korean War period or
that

single clear guide

any

tance is the promotion of cotton
consumption in foreign lands. A
rapid and very gratifying increase
in
such
promotion is being

•

the foreign

mar¬

brief period, especially one
so dominated by

world textile recession. I do not

the next three to five years.
' /
: Another factor with real impor¬

Decline

goods and

consumer

been

yet that we are back in another
period of headlong and" deeply

seem,

all

risen

■

Blames Foreign

in the

1955.

increased

middle of last year, 1958, we were
back in another period with much
to

state of the coffee

ket.- *.•

find

j/- ■

parel markets that have failed to
rise.
Our
biggest
trouble
has

in the experience

pressed

in¬

difficult

bales

-r?

are

very poor

cotton

between foreign consumption and

notable

most

Brazil, where the gov¬
ernment
is trying .to .encourage
cotton
planting because of the

tion firmed and returned more to
normal relationships.
But by the

resemblance

other

It's

answer

make

'/ -•

ices

creases

textile

i..'.; ./V.v..

Blames

ahead.

season

1955, we faced a new
situation. Foreign production had
risen rapidly in relation to for¬
eign consumption.
There were
huge raw stocks in the United

the

for

and

fact:

that

wet "

materials

keep

rayon

to what the sound export price
level would be. But here is a basic

tain level of

This,

against

alysis offers

weather, is said to be discourag¬
ing plantings quite significantly

Will

cotton.

keenly aware that textile*
whole have not kept up with
the total growth of the American

they seemed to
serious distress to

through this textile

among our competitors,
have to think of the competi¬
tion of other goods and services.

is that

season

the Mexican cotton economy.
combined 1 with ; excessively

look

pretend that anything in this an¬

region
But please notice this: Across
brought/ the
past decade total spending up¬

result of all this, foreign
prices are down.
Normally the
foreign upland cottons have a
certain price relationship to the
export price of U. S. cotton, and
they tend to follow the U. S. price.

exports and the current

which has been
a

Finally,

irrigation)
and • in
the
Matamoros region (where irriga¬
tion water was far more plentiful
at planting time than it had been
a year earlier).
Surely the prices
of a year ago may have been an¬
other encouraging factor, but the
main thing to be said about the
prices which prevailed later in

reliable

increases

Coast

for

ideas about stocks.

rapidly?

the

upon

this

grow

trend, and by doing so it
over the current out-

normal

could make

of any

the absolute minimum of stocks at

Why should they hold

Our exports depend on a rela¬
tively small margin between for¬
eign
consumption
and
foreign
production. The trends of both
these things are affected to some
extent by the export price of our
cotton, and a little tilting of either
trend, one way or the other, could

time,

At normal

it could

cotton consumption
in line with its

foreign
level

and will it keep foreign
production from expanding too

reveal.

this

going

is Mexico.

case

short time.

market,

had

market, and we have been fearful
as any nation rises to a cer¬
income,-the percent¬
yields lor the two seasons, Mex-t age of its spending for textiles has
ico would have added a quarter of an inevitable
tendency to drop off.
a
million bales to its production

table

other

that rayon producers all over the
world have been having a bad

•v*.

Foreign Free World

competitive

months, we find that
rayon has declined fully as much
as
cotton, or a little more, and

million

1.2

of several million

rate

the

export

careful comparison of fig¬

latest

estimated

The

up.

roughly
5%.

cycle to the long-range trend of
foreign consumption, it still seems
likely to be headed on upward.
Our export market through the
munist bloc.
:
•' T.7, years will depend on whether con¬
sumption rises faster than produc¬
^
Among competitive materials,
tion, and how much faster.
rayon is still by far the big one in
most of the foreign world, though
Question of Export Price
the
non-cellulosics
and
plastic
One
important factor in this
materials are coming up fast in
will be the price at which we
some parts of it.
One

year's

average yields per acre are down,
acreages

bales

If these

than

volume of production, will be up

substantially

the

decline

cyclical

annual

look

cotton, the

been halted. We were very much
interested in seeing what another

estimated

the

few hun¬

reflecting the relative trends
of cotton consumption and of
rayon staple production month by
month in the Foreign Free World.
For a long time rayon had a much
stronger upward trend than cot¬
ton, but in 1956 and 1957 this
tendency for rayon to gain faster

acreages planted to
as

This

main, basic cause of our current
export trouble. When the textile
cycle turns up, it could rise by

raise

ures

fact, however, that the
upland cotton,

depression

real

Whenever this happens,

year ago we

types of cotton which
comprise the principal production
and exports of the United States.
is

only

dred thousand bales of

made

the upland

unless

long

should sweep over the world.

within

communist countries, particularly
China.
While reported increases

;

increase

net

ex¬

con¬

take

to date represent

are

and

are

up
three-fourths, of the
thing, is upward, and we

consumption

favorable
them

Our in¬

petitive strength here. The wash-

consumption

total trend

upward.

face the future with

whether

decline in cotton

•

declining. The
basic trend of our apparel and
household markets, which now
make

When the fundamental forces of

hope

consumption...

midway in
First, then, we shall look fur¬
1958-59, and we find that both of ther into production.
If current
these adverse trends have been estimates
prove
correct, foreign
continuing.
If the current esti¬ free world production this season
mates prove true, the consumption will be
up by about 940,000 bales
of
cotton
in
the
Free
Foreign over last season. It is
important,
World
this
season
will
exceed
however, to analyze this increase
production by only two million in terms of the types of cotton in¬
bales.
volved. It is being estimated that
(The net exports of cotton from the
production
of
extra-long
the free world to the communist
staple cotton in Egypt, Sudan, and
world
also
have
an
important elsewhere will account for 700,000
bearing upon our exports, but this bales of this increase.
In India,aspect of - the
problem
is not where the production is largely
treated here.
Consumption and ,pf the harsh, short Indian types,
production in the Free Foreign an increase of 220,000 bales is ex¬
World provides the main explana¬
pected.
By
subtracting
these
tion of our current outlook.)
amounts, we find that virtually
now

„

domestic market, but we also have
some

Arid

the idea that the United States is

usual,

threats

tial increase in three years.

ask

thing that we certainly
seriously is the rising
volume of cloth exported from the
must

newer

lion bales of cotton.

Thursday, April 9, 1959

One

the

libers—nylon,
Dacron, and the other non-cellulosics—the picture is very differ¬

sell

been

sumption.

ton consumption in the Free For¬
points, consumption and produc¬
eign World rose more than usual, tion, the record of last season and
and
production actually had a this season has been unfavorable.
ent. These libers nearly doubled slight decline. When we consider In order to make our export mar¬
their market in the same four-i the following season, 1957-58, we ket grow in a sound way across
year period.
But the staggering find quite a reversal. For the first the years of the future, we come
thing is the amount of new ca¬ time in 15 years the total con¬ back to the fact that the funda¬
pacity that is expected to be con¬ sumption of cotton in the Free mental problem is to stimulate
structed by the end of next year,
Foreign
World
declined.
It the consumption of cotton abroad
1960. It is scheduled to reach an dropped half a million bales. And and to
keep foreign, production
amount equal to nearly four mil¬ production had the first substan¬
from increasing so fast as foreign r

the

For

have

to the nub of the

come

when

matter

latter

two

competition from other things

prices is traceable to the situation
in
consumption and production.
All
our
present export trouble
stems

incomes

foreign

halted.

and

50 million per

year, or that the basic forces be¬
hind the long-range upward trend

reasons

current export losses:

our

....

•

indicate

rather

continued

quarter
come

of
the

clearly

through
1958.
Has

only say that it
is unlikely to be postponed very
can

(Special to The financial Chronicle)

fourth

quarter
in subsequent weeks? We can't
sure.

With Gallagher-Roach

the
the;

COLUMBUS,

Ohio

—

Donald

H. Bradley is now affiliated

Gallagher-Roach
16

East

Broad

and

Street.

with

Company,

Volume 189

Number 5836... The Commercial and Financial Chronicle

(1649)

P131

pt«

•

••

rL'

kg#-/

■Ka

©j

;

W T
Wi-MZ&W

mw
WxMM

^5?W?c

"
0

DR. HARVEY E. WHITE

teaches Atomic

•

••

>£

•

>»

"■

Physics to 270,000 students

NBC's 5-day-a-week "Continental Classroom."

RCA Electronics helps put new life into learning
Five
years from now America's student
population will approach 50 million — 8
million above todays' figure. By present
standards there may be too few teachers

and

classrooms.

of this

But

important part

problem will be solved through

electronics.

are

students, providing communities with bet¬

use

ter

of America's 35 licensed
approximately
of which are RCA-equipped. Even at

programs

educational TV stations

schooling at the least cost

few of the

as:

audio-visual aids, TV, and tape

ways

RCA

the

recorders

"Language Laboratory

Package." More than 200 colleges
and
o
o

sec-

RADIO
Y

CORPORATION
-

are

just

RCA helps strengthen
America—through electronics.

—

increasing student

help of such electronic aids

the

Helping the teachers reach millions of

spread top talent beyond the walls of

single classroom. Still other schools

are

earning school credits through television.

covering ground faster with

radios, records and record players, special
included

and
a

60%

Already, teachers
interest and

the

home, adults and youngsters alike

ondary schools have installed closed-cir¬
cuit TV to improve instructing techniques

■

•

OF AMERICA
-

•

The Commercial and

(1650)

the
the

production of goods and services that are wanted by
people—but it could be done.
There are,

number of things that we, rich
or not, can not afford to do—can not afford by any defini¬
tion of that rather vague term. To put the matter bluntly,
we can not afford to wreck the economic system which
alone would enable us to carry such loads as the spenders
would place upon our shoulders. And to do the things that
however,

Mr. Bowles and the others would have

do would inflict

serious

damage to our economic system. We can not afford
to pay out large and continuous subsidies to farmers for
the production of goods which can not be used, or to pro¬
vide inducements to men not to work by granting them
so-called unemployment "benefits" which, as everyone
knows, are all too frequently in no way deserved, or to
stimulate housing which can be built and maintained only
by arrangements which require the industrious to help
pay for the accommodations of the thriftless, or to keep
adding and adding to the give-away in the name of old
age pensions—we can not afford to do these things be¬
cause they play hob with the economic
system which must
support these or any other schemes of the sort.
The fact is,

of course, that we are even now engaged
great many such programs which we can not afford,
and chiefly for that reason described above. Let it not be
forgotten that so far as these programs are financed out

they are supported very largely by
large business enterprises and individuals with larger in¬
comes.
Another very substantial part of that support
comes, if somewhat indirectly, from the "contributions"
of workers to their old age pension fund. This means, of
course, that a heavy burden is laid upon enterprise, and
that government obligations to pay
pensions in the future
are
growing at a rate few seem to realize. Such programs
could hardly fail to be a real handicap to that economic
system that-is expected to provide the means for the
things that the New Dealers and others demand.
revenues

Not the Whole

had

1943

propositions

two

scribed

that

"sale"

did

case

within

involve

not

the

meaning

January,

for

2(3)

under
though the
Court might not agree with this
proposition that the "no-sale" rule
which

any

(2)

then

was

purpose

even

embodied

actions

submission

summation

of mergers,

and

con¬

tions and similar plans and, there¬

fore, could properly be relied upon
making registration unneces¬
sary.
It
was
further expressly
as

stated

these

reliance

briefs

the

tration rule

that, while

"no-sale"

the

Note

regis¬

afforded

protection from civil liability un¬
der Section 12(1) of the Act be¬
of failure to register, if the

cause

Court did not agree with the "nosale" theory, the rule would pro¬

vide
19

protection under Section
the anti-fraud, civil and

from

criminal

liability

provisions

Sections 12(2) and 17.
The
the

Court

case

Appeals decided
grounds and

other

then referred to the Commission's

arguments

phraseology which,
it is generally urged, suggests that
the Court accepted the "no-sale"
theory. Following this discussion,
the

distinctions

between

the rule

and

the theory, so ably argued in
briefs, and their implications
apparently were not fully appre¬

our

ciated,

glossed

were

over.

least I have found no evidence
that they received very much at¬
tention until much later.

1951,

one

Regional

our

advised

that

goods made by the farmers are paid for, purchasing power
placed in the hands of the producers which is not
matched by the production of wanted
goods and services.
That is the
very essence of inflation. In time, it is all but
certain to cause
prices to rise to the detriment of us all.

Essentially the same type of influence is exerted by
purchases of various other elements in the population
which are not
contributing in corresponding amounts to
the production of the nation. Of
course, all this can go
on more or less
indefinitely only if credit is pumped into
the system in excessive amounts.
Otherwise, what is un¬
wisely spent in this way would have to be provided out

the

of the
over

current

income of

someone

else

whose command

goods would be proportionately reduced. But,
never objected to
arbitrary

of course, the
spenders have
creation of funds. The fact
amounts were

that funds

in such

large
arbitrarily brought into being during World

War II and the other New Deal
years, too, that a great
deal that is unsound can be
and is being financed in
reality
from past

inflationary credit policies.

If there
such

ever was a

we are

locked in

communism.

strength of

time that this nation could not afford

that time is

nonsense

Our

now.

Whether

like it

not

deadly sort of competition with world
survival
depends upon the greater

economic and social
systems. To weaken
our economic
potential at such a time is a
very serious
matter. In point of fact it is
very hazardous for us to fail
to take
positive steps to restore the vigor and the enter¬
prise which have made us the
envy of the world
many

our

decades. It is often
said—by

know better

that

must do this

some

imitation of communism or socialism
if
the clutches of the Kremlin.
The

through
who ought to
that largely in

are

escape
opposite is true. We must

proceed in the way that is familiar to us to
outstrip the
communist system now in force in
so
many countries of
the world.
.

orld

possibly

received

ing

certain

his

area.

peal

complaints

mergers

regard¬

brewing -in

referred

the

re¬

Form

matters

since

investigate

the

these

anti-l'raud

are some

can

things that

not afford to do—lest

even to exist.

the richest nation

we cease

to be rich

had

also

16(b)
Act

arisen

under

1934

which

issue

whether the acquisition of se¬
in
a
merger
could be

was

curities
treated
with

purchase and matched

sale

these

securities

within six months.6
The

Commission

determined

16(b) case
amicus curiae to urge that a
"pur¬
chase" within the meaning of Sec¬
tion 16(b)
had taken place and
that

the

had

been

fense
the

"no-sale"

The Commission at

time

directed

the

staff

rule under Section

16(b)

same

to draft

theory which
by way of de¬
application under

raised

had

1934 Act.

the

which would restrict the

with the submission of

recover-

securities

plan

are

need

not

issued

Regional

transactions.7

Administrator

offers

such securities

ad¬

limited

casual

emption

respect to any public distribution
of

the

securities

security

Act

Commission's
Section

juris¬
of

Ultimately,

the Commission determined to
press

the

Section 10 of the Securities

Exchange Act of 1934.

ex¬

the administrative interpre¬

tation in

a rule which would make
clear that the submission and con¬

summation of mergers and similar
transactions
are
deemed
not to
Involve an offer or sale for
pur¬
poses of Section 5 only fi Rule 133
in

essentially its present form,
was adopted on
Aug. 2, 1951.9
In

1956

the

6 Blau

(S.

deemed

Commission

an¬

7 See

Hodginson, 100 F. Supp. 361
Y., 1951).

Rule

16b-7

under

Exchange Act of 1934.

the

who

might

statutory under¬

writer.!5
Reference

language
United

also made to the

was

the

States

opinion

District

;

Securities

the

merger

limited

of shares is- '
(whether or '

persons !

control relationship to a con- ;
stituent corporation), prior regis¬

tration

required.

I turn now to the comments

the pending proposal.

Comments

Pending Proposal

the

For

statistically minded

should-first mention that 27 letters

received.

were

one

.Most

submitted

suggestions

raised

trols,

Inc.,

that

applicable
in

for stock
the

Rule

which

major

133

all who

generously gave of
experience to assist

their time and
us

is:-not

exchange of

is but

activity

as¬

a step
selling

the stock.16

-in the difficult task of drafting
workable rule.
Comments

were
submitted
by
firms, eight of which gen¬
erally opposed the proposal. Seven

15 law

favored it

cept it

inclined to

were

reasonable.

At least

ac¬

one

of those who agreed with the pro¬
8 It

interesting

that

note

two

early expressions by the Commission fre¬
quently cited as support for the "no-sale"
theory are in fact limited to the "nosale"
rule.
"The
Commission - has
in¬
terpreted the Act as not requiring reg¬
istration in such situations
The Com¬
mission felt that the
language and struc¬
.

the

Act

Report

of
the
Commission
on

ments

the

pointed to this result."
Securities and Exchange

Proposals

Securities

for

Act

Exchange

Amend¬

1933

Act

and

1934

<1941)

at p. 25.
See also SEC Report on
Study and Investigation of the Work,
Activities,
Personnel
and
Functions
of

the

Protective

and

Part

VII,

tees,
9

Securities

rule

the

after

Act
other
of

15,

Oils

15 See

Oils

Limited

683

Great

S E.C.,

ground
public was

the

No.

3846,

Petroleum,
Act Release

1958)

and

Corp.,

North

(Securities

No.

5756,

of
in

stock
of

the

with

One

stock

exchange, two mining asso¬
professional
organizations commented. One let¬
ciations and two other

ter

was

the

securities

received

from

firm

business, and three

from issuers in

some phase of the
Apart from the law¬

oil business.

the bar associations, only

yers and

the

letter

associations
view

the

mining
overall

proposed

amend¬

opposed the proposal.

shall not

state

one

indicated

here

attempt to

respond

all

re¬

the

ter

They are a mat¬
public record and you can

obtain copies of them if you wish.
It may be helpful to note some of
the

ments

them

sale

716

the

(S.

1958,

Fact
the

upon

the

issuer
acted

such

that

the

upon

and

you

consider

may

context

com¬

questions
of

re¬

the proposed amend¬

ment.

Approval

was

indicated

the

Commission's
lize and to

attempt to crystal¬
codify its views. Some

commentators

noted

this

con¬

nection, apparently with approval,

sold

important general

submitted

that the proposed amendment does

persons

defendants

Micro-Moisture

Supp.

appeal pending.

P^ew York

comment.

con¬

injunction

the

Y.,

supporting

stock

relationship

certain

neutral

prelim¬

31,

Findings

Law

Aug.

March

On
its

permanent

the

issuance

that

underwriters

mitted

raised

Release

11,

issued

the

256

1958).

Supp. 558
(S.
D.
This opinion was written

and

(1957),

nom.

Exchange

injunction.

3761,

Conclusions

167

Oils

Release

Court

committee

committee of the

marks

Aug.

the

S.E.C.

3728,

No.

sub

Resources

with

Association

County Lawyers Association sub¬

Inter mountain

and

control

No.

SEC

Limited

Act

Exchange Act
20, 1958).

that

Grass

37
curiam

(Securities

16 148

and

ment.

Release

Act

also

Bar

opposed the proposed amendment

3698

1957).

5753,

entry

Re¬

mittee, two other associations of
lawyers commented.
An Ameri¬
can

comments made.

Sweet

American

1957).

the

Act

No.

Release

(C.A. D.C.,

10,

nection

are

within

Release

Limited,

Grass

inary

dividends,
sale

Securities

Act

14 Securities

No.

transactions, such

posal nevertheless questioned the
premises and rationale. In addic¬
tion to the letter from your Com¬

per

2d 893

Inc.,

3522

1957).

13 Great

affirmed

(Oct.

en¬

Act

No.

1956).

17,

Sweet

Revenue

stock

Act

12 Securities

The

1956).

Securities

(Dec.

3420.

(1936).

10 Securities

(Oct. 2,

(1938).

No.

Release

involve

Commit¬

172

(see

Internal

(1954).
Certain
distributions
deemed

Release

Securities

not

249,

amended

was

actment

1954.

Reorganization
p.

Act

and

not

far

certain

the

statements contained in the Great

Sweet Grass opinion or the Sellers

ing-White release seemed to indi¬
cate.

was

suggested

that

the

stock.

Controls, Inc.,
N. Y., 1958)

question of interpretation.
Many caught drafting bugs. Each
was helpful and we are grateful
some

for

the Southern District of New York,
S.E.C. v. Micro-Moisture Con¬

the

Court

distribution i

received

holder

their

distribution

sued

sales

were

rela-'j

amounting to a distribution; and
that, if the issuer arranges for a

were

available, and (3)
Rule 133 provides no
exemption
from the registration and
prospec¬
tus requirements of the Act with

Kroy

the

by noncontrolling security holders which
might fairly be described as trad¬
ing transactions not involving a
distribution or unless other ex¬

thus

are

activity

not

are

registration;]

be an underwriter, ,
requiring prior registration,
except with regard to certain lim- !
ited
transactions defined as not;

sales

view

deemed

not

which had been rescinded, should
not be construed as in
any way
under

public

The

with

and sale unless such

(March

diction

and

issued

free

tionship with a constituent corporation, as defined, who takes se- f
curities in the merger transaction 1

concerned; that
is, that registration would be re¬
quired for any subsequent off el¬

vised that the position previously
reflected in the Note to Form E-l,

limiting

such

the proposal
that
required with

that any. person in a control

"free" securities which
registered insofar as

lease No. 929

Commission also directed that the

necessarily

subsequent

and

not

in the securities

that

mean

respect to the submission to secu- ?'

securities in consummation of the

plan, (2) this does not

briefly,

rity holders and consummation of :
transactions specified in the rule;
additional provisions would make^
clear that subsequent transactions

speci¬
fied in the rule and the receipt of

meaning of Section

mergers

Restated

registration

that

plan

published an-1
-proposed;

the

would retain the present rule

substance,

indicated

resulting report

the
of

amendment of Rule 133.17

merger or other transaction

ability of profits to certain types
exchanges involved in

133.

lor-

recommendations

the

appears

(1) Rule 133, where applicable,
merely provides that registration
of securities, and presentation of
a prospectus to the
security hold¬
ers, is not required in connection

the

contained

and

response

proposal and
summary
of
thei

and

nouncement

case13

the 1956

was

Grass

Rule

expressed

Commission invitation

comment

deferring
proposal pending

Commission

ture

in the Section

appear

Sweet

views
the

conclusions

Section

one

October, 1957, in the ScherinqWhite release,14 the Commission
discussed
the scope
and limita¬

of the Securities Exchange

the

the
Fol¬

April, 1957, in its Opinion in

the

pro-- sets

visions of Section 17 related only
About this time a case

to "sales."

nounced that it had under consid¬

'Yes, there

in the

had

the Commission and the staff,

further study.12

appropriate

the

including all relevant mate¬
taken by
and

ter,

rials and prior positions

de¬

involve

detailed study

hearing held in
otherwise.
the Commission;

1957,11

action

tions

consolida¬

public

that

the

E-l was limited by
questions as to the
application
of
the
registration
provisions of the Act to the trans¬
terms

character

Rule

announced

Note to Form

its

take

the

staff officers to under¬
of the mat¬

principal

offer and sale of securities.10

tion

the Act; and

wanted when

than that. Since these unwanted

lowing

E-l. in 1947 and
sought instructions whether it was

133

the definition of that term in Sec¬

But, of course, that is not by far the whole story.
The billions we spend to
keep farmers going, not only is
a drain
upon the Treasury but has the effect of keeping
many men and women producing thihgfe that are not

them. It tends to do

Early in the Spring of 1958, the
Commission directed three of its

a
proposal to revise; Rule
provide affirmatively that

transactions

Administrators

they could be at work Helping to provide
good things of life for themselves and the others around

eration

tion

Story

urged

the court: (1) the "no-sale"
theory, that is, that the consolida¬

133 Proposal

Rule

Pending

upon

cf current

page

Rule 133 oi the SEC

Things We Can Not Afford

from

We See It

1 'As

Thursday. April 9, 1959

...

Continued

Continued from first page

Financial Chronicle

17 Securities

Act

Release

No.

3965

(Sept. 15, J958) .Time extended for sub¬
mitting comments. (Securities
Act
Re¬
lease

No.

3990,

Nov.

1958).

Volume 189

Number 5836

rule be reviewed after

then

views

.The Commercial and Financial Chronicle

and

year

solicited

its

J2&J&

wished to withhold final comment
until

they have had an opportunity to review the proposed form
permitting use of a proxy statement

the

major part
statement.

registration
Question

raised

was

the

stockholders who may have voted
for or against the merger or not

ties in Rule 133 transactions does

and

not

changes in 1930 24

SB
raise

a question as to the need for
registration
with
respect
to
a
public distribution of a security

(1651)

involve

reasons.

term

nearly

merger.1'

ties Act 22

whether

"If. securities

issued

133 transaction should be regarded

nition

ing the rule making authority of

as 'exempted' securities, Sections
and
R
he
ionnred entirelv
4 and 5 mav
may be ignored entirely,
Under
these
circumstances, the
witness in an investigation Of pOSsible violation of Section 5 might
with considerable confidence assert that his stock, being merger

f!nmmis«inn
Commission

and
and

whether

whether, in

fact the proposal does not amount
to

attempt to amend the Act.

stated that

was

the proposal is

out the Com-

unnecessary to carry

mission's

to prevent im-

purpose

evasion of the registration
provisions of the Act and that ex-

stock,

isting

"lf? however, the rule merely
provides a means of escaping reg-

authority and court deciafford ample basis for pre-

sions

venting abuses.
it

was

tute

More concretely,

merger

viewed

deemed not to consti-

are

"sales'

for the

security holders
of;Section 5 can

purposes

nevertheless

deemed

"purchases

for, some other purhow "purchases" by security

pose;

istration

for

the

transaction

security holders who

in control of

constituent corpo-

ration; and how resales of
number,

corporation..by

rity

holder of

poration

are

of/a

given

successor

controlling

seen--

constituent

cor-

be said to represent a
when resales of a

can

"distribution'
much

the

larger number of shares of
class

same

after the
tion

holder

the

be given

would be
"distribution."
I

said

corpora¬

not

tantamount to

undertaking this task I wish

dispose

matter.

one

While

proposed amendment does not

deal

specifically with the question
whether a transaction subject to
registration results from the dis-

the

0ctober
UCtOPei,

111

before

the

"The
one

192923
iyzy,

Committee

"Exempt

——

the

corporation

Handbook,

exchange

another

Laws

State Laws

at p.

(1930),

although

National

Uniform

National

as exemPt transactions. The situa-

Uniform

/
Ibid., Section
243 (1930).

25 Paragraph
p.

181

(f),
(1929) and p.

—

;
-

;

•

c-".:

"r;-•

?:'■

consid- 'J

very

.•1

re-r,: >;
V/
legis-/'
lative history of the statute has
again been traced minutely. Prior
utterances by the Commission, its
j,i-v'
members and employees, past and
\
present, have been further re- /viewed.
Comments, arguments,
petitions

and

other

the Commission's

lay

and

Securities
been

statute

•;

•

in the

and

legal,

have

Relevant

enactment

Act

and

carefully

mergers and

The

interpretations,

time

at the

the

files

and

been combed.

definitions
current

The

materials

since,

considered.

1954

securities issued in
similar transactions.20

legislative

history also reveals, however, that the specific
question as to mergers and consolidations

was

presented to the Con¬

tribution
to its- shareholders
of gressdate in the legislative cofistdstock received by a company upon/eration of the original bills.21
It4
the- sale el- itS'^asSets 'to another has, been suggested,
therefore, that

i/1YFu'tiTxv*^

AV. H I L.lr; Wc

lljU tt^Il I vj / * ry f?

AOAJ;V

■

,441Al

uxi, vv w v yij, ,l

ikwell settled and generally •knbwn/ 'be ^brbifght to bear,' in the" event
that such a distribution "does not registration were deemed a
requiinvolve

"sale"

registration.

requiring

prior

Some of you sought
this point.
"

reassurance on

The

site to the submission and consummation of a plan of merger,

^was perhaps, not fully explored

diversification. In the Rent A Car Divi¬

were

sion, fleets increased 519%, Revenues rose
560%. In the Truck Leasing Division,
fleets increased 157%, revenues rose 207%.
The Car Leasing Division, a very limited
operation in 1953, has enjoyed an even

of the world

Pr°hlem, as it did others,

be worked out by the Commisslon Pursuant to rule making
•

Direc-:-^<*^Y®r'.^:;?P fve *

eonsis-

a year ago when the
tor ol' the Division of
Corporation

tent with the broad statutory ob'TniyJf.does.seem consistent

Finance"of- .the Commission;
boss, Mr;,Byron D. Woodside and
Mr.
Arthur H.
Dean
discussed
Rule 133 and

Section.3(a)(9) of

Mr.

Woodside

said

w»th the Congressional intention,

^ soliciting and

me-

Rnif>

jj? ^paction itself for purSection 5 of the Act. 6 it
/ purportto deal with sub-

5
x

tkvLc ?
or °^er ac"
J..
by stockholders,
nor to provides that
there cannot

anti-fraud

also be

finding of

ac-

rr-u

view

merger

connection

negotiation

With

Rule

issuer

would

the

not

indenture under the Trust
of

two

the

given,

ion

1951

ment

relieve

qualifying

and

restatement

should

also

the DvPcnt

Company

19 Address

the

that

Act.

e,.

The

FINANCIAL

years.

HIGHLIGHTS

•

Association

$90,558,749

EQUITY CAPITAL

$30,308,109
$

NET INCOME BEFORE TAX
Ratio to operating revenues.
Ratio to

NET

equity capital..

INCOME AFTER TAX

Ratio to

operating

revenues

NUMBER OF SHARES

EARNINGS PER

OUTSTANDING*.

SHARE*

DIVIDENDS*....
DIVIDEND

STOCK

DISTRIBUTION

AVERAGE

6,727,831

$78,757,364

$26,322,511

•
•

$ 7,732,725

7.4%

9.8%

22.2%

29.4%
$

4,747,831

5,696,725

5.2%

7.2%

15.7%

21.6%

3,227,111

3,113,664

$1.47

$1.83

$ .85

$ .73

—

STOCK

50%

—

VEHICLES OWNED

the

1957

1958

OPERATING REVENUES

CASH

and

Securities

Act

7-8

pp.

20
out

all

Invest¬

S.E.C.
Commission

applica¬

the

to/Section
Se-urities

(1941)].

from

■

12,994

11,602

14,416

and

are,

For

[Section

enough to include

solidations

85,

1933)

14,

21 See

13,548

1958)

16.

infra. Note 27.

5,105

34,255

30,255

50% stock distribution.

possesses

issuance
same

4(3)]

mergers

is
or

rea¬

not

con¬

of
corporations entered into
judicial supervision."
H. Rept.
73d Cong., 1st Sess.
(May 4,
p.

TOTAL VEHICLES

with¬

out

therefore, not
the

6,845

the

*After giving effect to 1958 year-end

carried

the Act.

provision

without

(mimeo.).

securities

the

broad

No.

(Jan.

judicial supervision
dangers implicit in the

new

son

Emphasis

3(a)(9)

1933

"Reorganizations

exempt

Particular

Section
of

Consolidations

such

the

Mergers,

SEC wih

133

[Ref¬

1940,

241

Rule

opin¬

Phoenix

S.E.C.

and the

the

"no-sale" doctrine

Corporation, 9

"sale."

Woodside,

rule."
to

under

case

Act

the

made

<1953)^ in which the
expressly overruled its earlier
of

interrelations of
the
the express purpose of

531

tion

the

statutes

erence

Indenture Act
Ir» this
connection, consideration

1939.

was

firmly than ever

operate

necessity

coming

earn¬

(including Bar of the City of New York by Byron

1952, the Commission ruled that

133

.f+u
r°.leoted the
that the lssuance of securi-

•

18 "In

the Act,

The first part of this conclusion,
I hasten to admit, requires the

and conduct
the part of an issuer
and other

persons

provisions of

registra¬
tion for subsequent transactions in
the securities had to be bottomed
upon exemptions relevant and appr0priate to those transactions,

tivities, negotiations
on

spectacular growth and has become

major contributor to corporation

of planned growth has

the industry

leader. We look forward t*
continuing growth and leadership in th#
as

Section 4(3)), the so-called

securing an(j that freedom from

Si?xL r y holders and

The past five years

operations to the

by 248%!

rose

?°clions 3(a)(9) and .i(a)(l()

made available throughout the rest

established Hertz

1958-

«Tf

number of cities in which Hertz services

rellected in the provisions ol

reorganization provisions of the
.J
Act, and in-the provisions of See¬
the
Cfifar+u
whatever tjon 4(1), to suggest that, while
W
ti?i^
1
or-y- ^
..registration was not intended for
■?
* original /version oj .the the mechanics of the mergers,
td Ti'mit '^IP°Se+4
VaS they were to be subject to the
14

ings. In all, the number of cities in the
United States in which Hertz services
became available grew 57%. And the

that time. It has also been sug-

About

Act.

On December 31, 1958, The Hertz Cor-,
poration completed its first five years as a
publicly owned company. Five years tliat
marked a period of substantial growth and

festedthat the Congress may have

to, specify with clarity the
meaning and the limitations of the
"no-sale'V rule are well known.

the

have

which

desire

Jan.

Commission's

considerations

given-, rise,, to-- the

i£,

For copies

of the annual report, write: Treasurer, The Hertz Corporation,
218 South Wabash Avenue, Chicago 4, Illinois

THE

HERTZ

World's largest ear

page do

1958

to the

fact that the Congress had before

Continued

233.

tion is not much different today.26

173.

Proceedings

Commissioners

Conference of

cor-

"sale"

majority of the states treated them

I have already adverted

Proceedings

(1929)

Handbook,

securities in

own

Conference of Commissioners
state

that any state then excluded merg¬
or
consolidations
from
the

ers

definition

transfer

———

Transactions"

poration of their

Uniform

This followed the pattern of the
tl
Sky laws. I do not believe

additional

search has been made.

the

to'
the

an-

questions,

Securi-

.'"/-j

fore

these

pSt76Sess'' on S* 875 (ApriI 3»

This paper does not permit me to
address myself to all of them. Be-

some

'trans-

Many items in this vast amount
of material are persuasive that the
Congress did not intend to exelude entirely from the ambit of

contained

daoPieci

1933j'

plated public distribution following the merger."19

have

hope to provide acceptable

swers

Sale

tion

Blue

cap-

following:

The definition in Sec-

22 Hearings

to section 4(1) and Sec-

once more

successor

tion

Uniform

then

consolidation

tion 5 with respect to any contem-

literature,

stock¬

taken

of such corporations."25

exemption, it would seem
follow that, consideration must

immediately

noncontrollirig

was

connection with
merger

The Uniform Act also in-

eluded in Section 5 under the

Banking and Currency, U. S. Senate, 73d

should, therefore, be

and
as

corporate transac-

even

same

"sale"

Similar.

minor

remarkably

action'

mining whether the security hold- } f Since that time
ers are.
.underwriters''only in the erable'amount of
of

the

after

are

holders can.be deemed to be pur- . *;/ - /
-//•• •••'
••
chases for the purpose of deter- > -Traces Congressional Views

case

reapproved

'free' stock.

was

questioned how transactions

which

proper

sale

tion 2(3) of the Act and the defi-

Rule

testified

possible from the

current

Act

the original bills that

by persons receiving such security pursuant to the terms of the

the proposed rule was fairly withtho
the

V^°sl
It was

hearings
the

Securities

CORPORATION

and truek renting and leasing organization

•

The Commercial and Financial Chronicle

(1652)

Continued from page

is found

and

issuer

Rule 133 of the SEC

cluded

specifically con¬
mergers, submitted
for the Investment

proposal,

cerned

with

counsel

Bankers Association of America.'7
While

records

our

not clear, it

are

appears that a memorandum was
submitted on or about April 18,

1938, after the hearings had been
The

concluded.

the form of

took

which

proposal,

substitute for

corporation, the state and the in¬
dividual stockholders.
".

The

'operation of law' of

the merger transaction merely re¬
flects the fact that when, pursuant
to

provision of the contract
(whether so stated in the charter
in the state law or constitution)
made when he acquired his shares,
a specified majority of his fellow
a

original provision of what is shareholders have, in the exercise
of their individual discretion, ap¬
jriow Section 3(a)(9) and Section
3(a) (10), and the reasons for it proved a certain type of corporate
reorganization,such reorganization
were:
is effected 'by operation of law'
the present exemption in
which is a term of his contract. In
Behalf of corporate reorganiza¬
hard fact, however, only the
tions needs to be clarified to in¬
shareholder who voluntarily ac¬
clude those cases where the reor¬
cepts the new security or who
ganization involves the organizing
negligently fails to avail himself
of a new
the

the binding

company or

the

"sale"

term

but

which defines who

2(11)

Would the

underwriter.

ex¬

it nevertheless
side for the purposes of

2(3),

Section

underwriter is

from

Section

must be a

the face of the statute.

is¬

of several

new

compa¬

exclusion

The

from the

this transaction

provisions of Section 5,

whether by express

statutory pro¬

.'"

of at least

Apart from these and earlier
references to legislative and other

indications, there is serious

ques¬

theoretical

grounds
whether the accepted rationale for
on

the view that

"sale" within the

meaning of the Act is not involved
in the submission, voting upon and
consummation of

sim¬

merger or

ilar transaction, is justifiable. The
staff report refers, in part, to this
matter as follows:

of the sharehold¬

to whom the proposal is made.
Assuming a public offering, the
only other problem one faces is
ers

whether

not

the

'value.'

for

one

consolidation

disposition is
voting for a

for

a merger, the
disappearing cor¬
poration is giving up valuable ex¬
isting rights in that company, cer¬

shareholder of

Section

holders d i

s s e n

with

Should

share¬

t,f in compliance
procedure,
they

statutory
generally command cash payment.
merger and
the other types of Where the right to demand an ap¬
transactions specified in Rule 133 praisal exists, the stockholder who
votes
for
the
ere essentially corporate acts and
plan voluntarily
there is absent the volitional act gives up that right. Thus, where
"The

based

'no

sale

theory' has been
rationale that a

the

on
the
part of the individual
Stockholder required for a 'sale'
In the generally accepted

there is

acceptance of the offer

133

define

bution is

aside
lem

underwriter.

the

for

moment

Leaving

the

defining what is

prob¬

be¬

who

second

with

requires," is necessary
neither the first

cause

nor

clauses of Section 4(1) provide an

exemption

this

for

first

step

take
a

some

writers

securities.

The

the
recommendation

staff

should

not

understood

re¬

reasonably

Ride 133 transac¬
tions.^} As already noted
such a
conclusion was given public ex¬
in

pression

Commission

the

in
Congress
amendments of the

1941 in its Report to the

proposed

Act.30

Transaction?
We may

turn

to the

now

ques¬

merger

of these
and

others

all?

fit

seems

persons as under¬
effect except all
from language that

refine

the

question further, if a person ac¬
quiring shares in a Rule 133 trans¬
action is in a control relationship
with the issuer, any intermediary

distributing
him

such

securities

for

clearly an underwriter in
view of the last sentence of Sec¬
tion 2(11).

that

urged

statutory

It can not seriously be
Rule 133 affects this

scheme.

There

basis for suggesting that Rule

133

justifies the view that merely be¬
cause
a
security is issued in a
transaction

within

the

rule

thereafter to be treated

empt security.
While all of

ex¬

'
would agree that
intention
to evade
us

and

can

someone

who

ac¬

other similar transactions be

stance

the

nores

the

its

transaction

and

ig¬

fundamental nature

relationship

Stockholders

and

between
the

of
the

corporation

and between stockholders. It does
not seem to us that the mere fact
that the relationships are in

part
by statutory provisions
Of the state of incorporation must
as a matter of law
preclude the
application of the broad concept

Commission should take any positic® which might foreclose or

prejudice

rights which a per¬
son
might have under Sections
12(2) or 17 in a transaction of the
type specified in the rule."

sale

contained

2(3) for all

Section

purposes.

"The
concepts
of
^sale' in Section 2(3)
than the commercial

and

broader

common-

law contractual meanings of these
terms and embrace situations
which would

not be regarded
sales in the commercial sense.

as
.

"Transactions of the character
described in Rule 133 do not, as is
oiten urged, occur
solely by oper¬
ation of law and without the
ele¬
ment
of
individual
stockholder
volition.

common

law

the

contrary,
statutory

and

the
law

recognize that mergers and simi¬
lar transactions are possible
only
within the framework of the
con¬
tractual relationships between the
26

[in
is

"Thirty-odd

all

the

statutes

corporate

exempt

events

some

specified

^rOWn ^ Company, 1958)

346
27 This

randum
rities

was

entitled

the

form

"Senate

Bill

memo¬

875,

Bill

Secu¬

(Reprint
No.
3)
Proposed
Amendments, Submitted by Counsel For
Xhe Investment Bankers of America."

not

sale is involved

the statutory context, and
the question should in no sense
be influenced by the rule."3i The
situation
is analogous
in many

upon

tract to

sell or,

indeed,

actual
Having reached this conclusion
sale, to an investment banker.
the question
properly arises why This is, as we have
noted, defined
the

staff proposal does not recom¬
mend outright repeal of Rule 133.

analysis of the

pro¬

visions,

definitions and require¬
ments of the operative
provisions
°f the Act, as well as the
civil

liability

provisions, it was
existing rule

con¬

cluded that the
resents

reasonable

rep¬

interpretation

of the Act in the
application of
the procedural
provisions of Sec¬
tion 4 and Section 5 to
merger
and similar

transactions;

that it

is not inconsistent with the
broad

of the Act;
represents a proper

purposes

the

Commission's
authority.
Section
flects

the

arid

that it

exercise

rule

fact

Co., 134 F. 2d 875, 878
the

Court relied
less the context
in

the

justify
sale

opening

Vaughan
(C.A.

conclusion
Section
2(3)

1943),

requires

has

un¬

...

Section

that

12(2)

Clarke

phrase"

otherwise

clauses

the

meaning for Section
tion

the

2(3)

when

that it

not being

will

everyone

is, and

one

agree

would sug¬

gest that it does not result in the
investment

banker
becoming a
purchaser for purposes of Section
2(11) or otherwise.
If he pur¬
chases with

he becomes
the

and

view to distribution

underwriter within

meaning

4(1).

Sections

2(11)

It would surprise

me a

great deal if an underwriter who
has

been

suit

Section

under
a

liable

held

12(2), based upon
misstatement in a prospectus,

would

feel

that he could

not

sue

Rule 133 mold

native

the

lems
tion

sale

for

alter¬

cash

the

broader
for Sec¬

would

arise

prob¬
registra¬

the

Under

prospectus

The

Securities

Act

Brooklyn Law Review 254

(1958)

Report,

supra.,

Act

Release
.

No.

3420

such

sued.

of the per¬

some

shares are is¬

the

whom

the

situation

issuer apparently has such an
terest or obligation to provide

in¬
for

conversion of the shares into cash

to arrange for the

distribution

situation which has the flavor

—a

and the substance if not the

pre¬

cise words of

"selling for" an is¬
suer,
as
spelled out in Section
2(11). In any event it is difficult
to support the view that the issu¬
er's relationship to the public of¬

fering is

so remote as to suggest
availability of an exemption

the

under

Section

The

second

categories

two

In many cases a

really want and have
bargained for. Our experience in¬
quires shares in a "no-sale" trans¬ dicates that in
many cases it is
action
be a purchaser
of those
understood, if it is not a sine qua
shares? I have already noted that
noil, that the stockholders of the
the
legislative
history
of
the
selling or disappearing corpora¬
statute
supports
the view that tion
are to be in a position to dis¬
Congress intended that mergers
pose promptly of all or n part of
tion of how

tially

who may be considered as under¬
writers.
The first includes
the

term public offering, it is not nec¬
deliberate
registration will vitiate reliance essarily always the same thing. An
on the rule, this is not a criterion" offer to sell 10 shares of a heavily
which is satisfactory for deter¬ traded stock of a large corpora¬
mining whether Section 5 shall tion through a broker using the
a

into
Are There Purchasers in aNo Sale"

the

view to distribution under¬

cedure

leading to a public offering

writers? In other words, why does
the proposed rule identify only

what is normally a two-step pro¬

2(3).

proposed

the

Rule

purchasers as under¬
writers, if they take with a view
to
distribution, and not others?
Before treating with this question

wise

tainly value within the meaning
of

of the

some

vision or by interpretation of the
phrase "unless the context other¬

may

some

does

Why

amendment

Underwriter?

distri¬
bution, the question should, there¬
fore
be why are not all persons

alternative
a n

tion:

to the next ques¬

the

and

urge,

connection therewith.

tion

the

payment,

This leads

underwriter I would like to restate it. Section
accept, the view that Sections 2(11) provides that any person
12(2) and 17 should not apply? who takes with a view to distri¬
suer

right to cash flect the view that there would be
be deemed insurmountable difficulties in de¬
nies. The definition of reorganiza¬
therefor to have assented, is vising rules which would require
tion
used
by the Federal In¬
'bound' by the action of the ma¬ the filing of a registration state¬
come Tax Law is a precedent.
ment in
respect of a Rule 133
jority.
"Therefore, to cover both of the
"It seems basic that the stock¬
transaction and prescribe appro¬
Obove features, we propose a sub¬
holder faced with a Rule 133 pro¬ priate
standards
of
disclosure
stitute
provision for subsection
posal must decide on his own vo¬ consistent with the provisions of
(d ), as follows:
lition whether or not the proposal the statute.
It is based upon an
"'(d)
the distribution of is one in his own best interests.
analysis of the manner in which
securities issued under a merger
He is bound by his own action or
other
jpi-ovisions
and
require¬
or consolidation, or reorganization
failure to act.
Every merger in¬ ments would operate which per¬
or recapitalization by the corpora¬
volves an attempt to dispose of a suaded the staff to the view that
tion or corporations' party thereto
security—there is an attempt to the
prohibitions
of
Section
5
or formed pursuant thereto or in
place a new security in the hands would not operate effectively and
together

What Constitutes

agreement of sale between an

1959

Thursday, April 9,

...

of the
by

merger

condpany, see Purcell,
note 5S, at pp. 287-290.

the

with

op.

Act

the

is, in the main, con¬
problem of distribution

distinguished from trading." H. Rept,
85, 73d Cong., 1st Sess., (1933) at
15.

35 Securities

(1954).

Act

Release

No.

3525

Number 5836

Volume 189

N. Y. Bank

Questions Equities

Hedge

as a

prices of industrial shares dropped

their

17%.

income'."

tried it. Shift¬
ing to equities would develop ac¬
celerating advance in their prices
to a point where collapse
from

after
exposing the performance record of various hedges resorted
to as shelter against purchasing power deterioration.
Coneludes "the only way to beat inflation is to prevent it and
people

end

Addressing its analysis of
whether there are defenses against
inflation for the many who are

the

were

1946,

the

techniques

they can risk, the April Monthly
Bank Letter of the First National

City Bank of N. Y. concludes the
individual has no foolproof

;

thorough analysis
oovers
the
protectionist
claims
made for cost-of-living escalation
in

wages

and

bonds

ments,

and its extension to
social Security pay¬
bonds

from

shift

annuity

variable

plans,
in

stocks

Stock

Exchange

had

have

It took 16 of the
stocks presently in the Dow-

patient indeed.

Bank's

The

listed

York

market

the

method at all times and the com¬

munity has none.

stocks

almost

cer¬

tainly ensue. In eluding inflation,
as in fleeing from a burning thea¬
ter, the greater the number of
people who try to crowd through
the

chance

the

exit

same

successful

for

escape.

fiduciary funds, and the historic
inflationary hedges of gold, art
treasures, gems and real estate.

industrial

Jones
than
1929

still

average

20 years to get back up to
highs—and four of the stocks
haven't made it.
Measured

from 1946, 12 stocks

took between
to recapture
others took
more than
12 years and one has
not yet regained its '46 peak.

five and
their

seven

years

high.

Two

'46

cal

common

"Five other points need to be
points out that "As noted when considering stocks as
an inflation hedge.
for common stocks, the average
investment paid off handsomely
"First, common stock prices,
over the decade.
In actual prac¬ contrary to popular notion, do not
move
tice, of course, investors do not
up in any systematic way
buy
an
average
stock
but a with the cost of living. Indeed,
specific issue. Thus average gains stocks have quite often declined
can be misleading.
at the same time consumer prices
"Many stocks have declined in were rising. The following table,
value, or have become worthless, based on stocks in the Dow-Jones
even
though the general market industrial average, gives the rec¬
trend has been upward.
At the ord for more than hall' a century:

Stock Declines Since 1900 vs. Consumer

Price Index
No. of Months

Consumer

Interval to

Prices

Recover Stock

% Change

;% Change

Price High

Stock

Period—

Jun.

1901

to Nov.

—46

1906

to Nov. 1907

—49

6
7
4-19

Jan.

128

1903

Nov. 1916

to Dec.

1917

—40

Nov. 1919

to Aug. 1921

—47

1929 to Nov. 1929

—48

Apr. 1930 to July 1932
Mar. 1937 to Mar. 1938

—36

Sep.

Oct.

1939

to Apr.

May 1946 to Jun.
Apr. 1956 to Oct.

—

287

105

—40

4-15

1949_.
1957

—24

4-29

—19

—49

—

ing at prices which give a cur¬
rent yield of 2^% and even less.
Purchases at such prices can be
rationalized by the shrewd in¬
vestor on a basis of anticipated

commission

costs

profits.
"Moreover,

which

Years to

Assumed Rate of

rosy

expectations for the future
of dividend payments.

course

—.

Copper,

1948

1958

$0.30 Ys

$0.40

0.23 Vz<

0.29

+ 23.4

1.13

—'19.9

—

1.41

Corn,

lb—
Platinum, oz

0.33

0.34

91.61

52.00

0.19

0.31

o.7i y2

0.90

1.03

0.98

Cotton,

lb——

Rubber,

Silver,

—

Tin, lb.
Wheat, bu.
Wool,
11)....-...-

2.27

1.93

1.80

1.10

Chg.
31.1

+ 63.2

+ 25.9
4.9

—

23 V2

29%

391/4

43%

141/4

2D/4

26%

281/2

103/4

141/2

12%
8%

131/2

71/4

15%
from

"There

Sure

Way

Alfred

the

Co.,

Taussig,

First

National

With H. C. Wainwright

staff

(Special to The Financial Chronicle)

PORTLAND,

Day & Co., Inc., Wash¬

Exchange.

Hatch

Maine

Kendall

—

with

affiliated

now

Wainwright
Bank Building.

Co.,

Casco

Straight Thinking

Timely Subjects;

About highly

speculative stocks.

About stocks

being bought by people who don't

realize what

About

they're buying.

people who shouldn't be in the market at all.

Keith Funston, President

pulls

of the New York Stock Exchange,

punches in listing penetrating "do's" and

investing. His article—"A Word of

"don'ts" of

Warning"-is must read-."

ing for anyone who owns or hopes to own

securities.
Health

The Facts Behind America's Growing

Why

are

exchange

and

lives? the

people living longer and healthier
gives the answer

...

research by the nation's drug

pharmaceutical companies. Also, how the owners
enterprises have shared in the rewards of

research.

question but that

people have defended them¬
against inflation through
shrewd
(and somietimes lucky)

The Institutional Investors' Role

selves

in the Stock Market

investments in art treasures, com¬

stocks, or real estate.
paid, however, such
people were skilled in the tech¬

modities,

Get the

For the most

the decade to come.

What worked

for the individual there is no fool¬

proof method of protection against
all

times

circumstances.

and

And

under

the

for

as a

their

up-to-date facts on institutional investors. Read

about

position in the market.
47 Unique

Equities

Only 4 percent of "Big Board" common
cash dividends every 3 months

stocks: a) have paid

for 25 years or longer; b)

represent companies having no long-term debts
and c) are not

outstanding;

junior to any preferred stock issue. The names

of these 47 stocks

and salient data about them-yield, cash

dividends paid in the

latest 12-month period, 1958 share

volume-appear in the

April exchange.

"C.

Balderston,

Canby
of

point in

Governors,

made

the

Society

during the years 1946-50 when the
Labor Party was in power. Dur¬

tors cannot outrun

ing those years—marked by very
high taxes, nationalization (and

selves

to common stocks in Great Britain

in¬

dustry, rigid government controls,
and basic antagonism towards pri¬
vate

business—though the British

cost

rose

nearly

begin

your

and industry for the next

and mail coupon below with $1.50 and

1-year subscription with the April issue. Do it

today! Remember, the exchange Magazine

is not sold at

newsstands.

22%,

can

'While

the

against it; that is,, they can
to fight it by demanding

prudence

11 Wall

the management of

Magazine, Dept. 7

Street, New York 5, N. Y.

Enclosed is

$1.50

(check, cash,

of the exchange Magazine.

tb-14

NAME.

ADDRESS.

national affairs and by exercising
it in the conduct of their own. In
CITY-

short, they can insist that the na¬
tion
not
spend more than it
earns through production and that

money

order). Please send me the next 12 issues

majority of inves¬
inflation, they

do something to protect them¬

unite

the exchange

of Chartered

prices hedged against, but also for
the capital gains tax.
"Fourth, the value of stocks
must reflect, in the long run, the
earning power of business. This,
in turn, will be vitally affected by
government programs and poli¬
cies, taxes, controls and regula¬
tions. Rising business profits and
dividends do not necessarily fol¬

living

12 months. Just fill out

this

before

prices.
happened

nationalization)

Magazine. Keep abreast of im¬

portant developments in the market

speech last November

Life Underwriters in Hartford:

information-packed articles and many others

like them in the exchange

Vice-

It is worth noting what

threat

Enjoy these

Chairman of the Federal Reserve

low from higher consumer

—

at Court Street, members

these

nal gains, allowance must be made
not only for the general rise in

nomi¬

with

trust.

91/4

Moody's Investors Service.

"Third, when measuring

Mass.
joined

some

Board
^Calculations

Chas.

has

—15.0
—38.9

whole there is no
The only
way to beat inflation is to prevent
it
and have
money people
can

10%

71/4

Inc.,
Building,

Bank

William E.

—

—43.2

hedge against inflation.

BOSTON,
Sparks

3.0

;: "i

The

community

10%

111.
now

■

all

Equal Return at Top of Column
7%

come.

Annual Dividend
Increase

Taussig, Day

PEORIA,
Smothers

December 31,

Cocoa,

shows,

Stock Yielding 2*4%*

Joins

(Special to The Financial Chronicle)

regis.-

Chas. A. Day Adds

Morrison

(Special to The Financial Chronicle)

As the following table in the past 10 years is not neces¬
however, purchases of sarily a guide for the future. All
stock on a yield of 2^% involve that is sure is that the pattern
either a long period of waiting for will be different.
"What this all adds up to is that
a more substantial return, or quite

Southwest

430

Street.

into

eat

will be the best inflation hedge in

dividend increases over the years

Holden,

Day

of the Boston Stock

inflation
Purchase

Exchange,

tered representatives.

pretty much short-term specu¬
ventures
for
people
not
engaged in the particular busi¬
ness, rather than long-term
in¬
vestments. Frequent moves in and
out of commodity markets mean

nancially sophisticated, expert
enough to avoid frequent invest¬
ment pitfalls.
'
"No one can really know what

"Journal of Insurance"—except for the last two
computations.

"Second, at recently prevailing
price levels, the stocks of many
well-known companies are sell¬

Stock

the staff

Connaway

Parker,

lative

are our own

west

cotton, cocoa, wheat, and so forth

niques of the various markets and
capital they could risk.
"Not everyone has these oppor¬
tunities.
A person, in good con¬
science, c a n n o t speculate with
funds put aside for family emer¬
gencies or for the children's edu¬
cation.
And not everyone is fi¬

302

0.4

—20

Hunter

with Mullaney,
Company, 135 South La
Salle Street, members of the Mid¬

had

1942——

SOURCE: November, 195?

periods which

are

Stocks

Bank

Some Common

associated

Wells

ington

casual interest.

The

come

Oreg.— Bruce A.

Wood has been added to

CHICAGO, 111. — Herman J.
Eckrich, Jr., Richard G. Muench,
and Marjorie H. Rosen have be¬

can

stocks is of more than

Hunter Parker Adds
PORTLAND,

Mullaney, Wells Adds

enterprise for most people.
Dealings in 'futures' markets for

commodity
prices
register violent swings under
"Picking the right stocks at the the
influence of war (or threat of
right time is no simple matter.
war), w^ilhei^nd>arop develop¬
The Worst Inflation
The increasing popularity of mu¬
ments; and changes iirgovernment
Noting that "there is no lack of tual funds (net sales of shares programs and policies. Individu¬
nearly $1.5 billion last
evidence" that fears of continued totaled
ally, their movements can be quite
inflation have
been influencing year as against only $433 million
independent of the cost of living.
people's investment decisions," the five years earlier) reflects a grow¬ It is impossible to anticipate to¬
Letter observes an ironical con¬
ing willingness on the part of the morrow's needs for
living at to¬
sequence.
Namely,
"the
worst investor to pay 'load' charges in day's prices.
price inflation has been in popular order to get diversification and
"The record for 10 commodities
management.
Even
so,
inflation hedges, such as the stock expert
in the past decade is shown in the
there are problems
of selecting table. Prices of half were lower
market."
In view of the recently issued the right fund. The National As¬ than 10
years earlier.
Wall Street and SEC strictures sociation of Investment Compa¬
nies
lists
more
than
150
mutual
and
admonitions against
Changes in Spot Prices of Basic
recent
Commodities
flurries of speculation, the First fund members.
National City Bank's assessment
( Dollars per Unit)
of

29-

(Special to The financial Chronicle)

the

smaller

selling below their highs of
Putting- Money in Commodities
12 years earlier.
"As for commodities as an in¬
"Not
only what to buy but
when to buy is important. Inves¬ flation hedge, the warehousing of
tors who bought at peak periods bulk commodities is not a practi¬

skilled

than one third

common

New

various markets and have capital

not

1958

all

would

overvaluation

trust."

can

futile if everybody

City Bank leaves little to the imagination

have money

using common stocks
inflation hedge would prove

within its

government live

"Finally,

Against Inflation
First National

(1653)

The Commercial and Financial Chronicle

...

-STATE.

I
I
I
J

The Commercial and Financial Chronicle

Thursday, April 9, 1959

...

30.J (1654)
Continued

jNarry L. Nelson Will
Retire From Business
111.—Harry L. Nel¬
associated with Blyth & Co.,

the rest of the

trading

department,
will
of

retire

1 1

reached levels of high prosperity.

live

Nationwide Bank

Phoenix,
A

Harry L. Nelsoa

Club

honor
be
held

will

Attic

the

April 20. Lester J. Thor-

Forgan & Co., is
arrangements.

Glore,

sen,

charge of

Week Ended

FHLB Notes Offered

New

callable

steel

Age"

tomers, "Iron
long industry

hot

be.

came

hold

would

out

with these conclusions on how
in event of a steel strike this

month.

hope to have enough on hand to main¬
At least that is what they are shooting
steel strike would not be allowed to go on

users

tain otuput for 60 days.
for.

They figure

for

Lakewood Securities Corporation,
J4714 Detroit Avdnue.

thap 60 days, anyway.

(4) After

month and

that the pressure

for

;

(Special to The financial chronicle)

scared

able to build inventories to what they consider a "safe"
margin.
And the reason is that their own business has been so
good that they are using more steel than they thought they

been

•'

PORTLAND, Oreg. — Donald J.
Mansfield is now with E. I. Hagen

Building.

would

tory.
•

They are assuming steel contract negotiations will be set¬
peaceably.
These companies will be crying for help within
a very short time, should there be a strike.
"Iron Age" said the strength of the economic comeback has
caught some steel users off guard.
It quotes a Cleveland fabri¬

tled

BOSTON, Mass. — John L. Rey¬
nolds is with Keller & Co., 31
J

"We

(Special to The Financial Chronicle)

SPRINGFIELD, Mass.—Everett
H. Talmadge is now with Jay C.
Roberts & Co., Third National

Building.

started

inventory building in February by projecting
our order pattern.
We had hoped to have a three-month inven¬
tory on hand by the end of June.
But orders have picked up so
in the last few

fast
door

fast

weeks that

the steel

With I. M. Simon

metalworking weekly said that if there is no strike, the
operating rate will drop—but it won't collapse. It explained
that the mills now figure the general economy is strong enough
to make July a good month for steel. The outlook for the last five
months of the year is uncertain.

(Special to The Financial Chronicle)

Week's Steel

phen is now with I. M. Simon &
Co., 315 North Fourth
Street,
and

has

become

322 Walnut

connected

and

Westheimer Adds
Ohio—Lawrence
to

G.
the

staff of

Westheimer and Company,
^hird National Bank Building.

Joins Ross, Borton
(SDecial to The Financial Chronicle)

CLEVELAND, Ohio —Paul G.
Campbell is now connected with

Ross, Borton & Co., Inc., The 1010
Euclid Building.

at 94%

of capacity, up

a new low for the year despite this
output.
"Steel's" composite on No. 1 steelmaking
scrap dropped to $37, off $2.33 frbm the preceding week.
One
explanation for mills not buying dealer scrap could be their ex¬
pectation of a steel strike.
Mills are still depending on hot

added

net tons for ingots
the largest in history, "Steel" magazine reported

Scrap prices declined to

(Special to The Financial Chronicle)

been

steel production of 2,661,000

point, and beat the previous week's output by 30,000 tons,
metalworking weekly said.
During March, they set a monthly record: 11.5 million tons.
Their best previous effort was 11,048,513 tons in
October, 1956.
Eleven out of 12
of the magazine's steelmaking districts
operated above 90% of capacity.
record

has

Institute

that

announced

the

2,638.000 tons

week ago...

;

equal to 93.2%

was

of the Jan.

production, is based

weekly production

average

1947-1949.

for

•
.

March

Auto Output 61% Above Year Ago

After

coming up with a March production total that sur- •
passed the same month a year ago by 61%, U. S. passenger car
makers are preparing their assembly plants for an April effort
that will top the corresponding month last year by 82%
Ward's Automotive -Report said on April 3, that the Indus- '
trv turned out 576,085
cars last month compared to 357,049 in i

March, 1958.
In

f':>-+■■■:

;

prospect

April

for

are

Volume

April, 1958

was

+■
■
■ " %
%
577,400 units, third-highest April
1955 (753,851) and 1953, (601,472).

316,503.

•

Ward's said the first-quarter car yield this year was

units, 29% higher than last year
According to the statistical
the

indicate

rates

millionth

two

car

the

22, eight weeks ahead of last
million .point was reached June 17.

around

1,800,359

(1,238,697).
publication,; present

April

year

;

assembly
be built
when the two
will

■++■+ 1/1

.....

f
Estimated for this week was output of 133,965 cars, 10% :
than last weekh{121,832), when Easter holiday program- >
ming kept production in check.
This week's count bettered the
corresponding week last year (64,318) by 108%.
Ward's said the only assembly plant failing to operate at",
least five days this week was Ford Motor Co.'s Los Angeles fac¬

tory, closed since March 19 while
operations
are
being integrated.
Monday (April 6).

Ford and Mercury assembly
The plant resumed work ;

car output were American Motors, Ply¬
Los Angeles and Ford Division in Atlanta,

mouth in Detroit and

Chester, Dearborn, Louisville and San Jose.
Truck scheduling this week was set at 25,790 units, 1% above
last week

(25,535) and 53% over the same week last year (18,888).

Electric Output 11.4% Above 1958 Week
The amount of electric energy distributed by the

electric light

industry for the week ended Saturday, April 4, was
12,618,000,000 kwh., according to the Edison Electric
Output the past week was below the level of the pre¬

power

estimated at

Institute.

ceding week
below

1,292,000,000

that

successive weekly decline.
declined by 91,000,000
the previous week, but showed a gain of
11.4% above that of the comparable 1958

marked

and

the week

For

ended

kwh.

the

third

March

28 output

week.

Car

Loadings 13.4% Above Corresponding 1958 Week

Loadings of revenue freight, for the week ended March 28,
1959, totaled 603,755 cars, the Association of American Railroads
This was an increase of 71,482 cars, or 13.4% above

announced.

the

corresponding week in 1958, but a decrease of 91,167
below the corresponding week in 1957.
Loadings in the week of March 28, were 577 cars,
tenth of 1% above the preceding week.
v

cars,

13.1%

one-

Company,
Street, members of the

DAYTON,

Steel

and

of the
1, 1959 annual capacity of 147,633,670 net
Estimated percentage for the week of March 30 is 93.2%.

Lumber Shipments Again Exceed Production

the

New York Stock Exchange.

Stevens

was

Steelmakers operated their furnaces

(Special to The Financial Chronicle)

Westheimer

castings

Output Largest in History

April 6.

Joins Westheimer Co.

with

Last week's

and

Midwest Stock Exchanges.

Franklin

Iron

Actual output for March 30 week

kwh.

The

ST. LOUIS, Mo.— John P. Ste-.

Ohio—Harry

American

The

going out the front

it is coming in the back."

steel

CINCINNATI,

summer.

operating rate of steel companies will average *164.2% of steel
capacity for the week beginning April 6, equivalent to 2,638,000
tons of ingot and stebl castings (based on average weekly pro¬
duction for 1947-49) a? compared with an actual rate of
164.2%

and

Roberts

York

for

slowing some deliveries.
+.
5 ++ %
'+;
+++
'+
+:
+ "■+
'i- V■ p..+.* +*:+h;•+:.-.v.'+++"+;+.+> i;;"Steel Production Continues to Mount
;+;+^:+.r:

cator:

New

earmarked

Planning Saturday

group also, said "Iron Age," are the steel users
who have decided there is no point in building up a heavy inven¬

With Keller & Co.

the

fast¬

/
.

be.

In this latter

gears,

half, everybody would be
settlement would be irrestible.
a

(5) Even if you discount the steel users who habitually cry
"wolf" just to stir up some excitement, some companies have not

Now With E. I, Hagen

members

expect

buyers

motors,

producers well* in advance,

Not serious

(3) Most steel

Chronicle)

LAKEWOOD, Ohio —Peter B.
is now associated with

Bank

diminishing supplies

business,

.J (2) The rush for goods has; b

total in history behind record

A small minority of users would be in trouble after about

(2)

Selover

that

Joins Lakewood Sees.

Joins Jay C.

shows

trouble, but enough that they would begin
to pressure anybody who would listen to get steel plants back
into production.

State Street.

barges.

many

survey

A month ago the operating rate was. *162.1% and production
2,604,000 tons.
A year ago the actual weekly production was
placed at 1,308.000 tons, or 81.4%
•
•
:

(1) By June 30, possible steel strike deadline, over-all steel
inventories, including some semi-manufactured items and com¬
ponents, will exceed 20 million tons.
This would be enough
to last 90 to 100 days, were it evenly distributed, which it will

principal

(Special to The Financial Chronicle)

destroyed

quarterly

forgings, and other components in the second quarter.
Components are a bellwether of industrial activity.
>
In stockpiling for the expected steel strike, component buy¬
ers
have
bumped into two problems:
(1)
The recovery has

*Index

begin to pinch some steel users after

need repairs.

eners,
'

tons.

summer:

Co., American Bank

"Steel"

continue building up inventories on castings,

Strike This Summer?

strike would

floods

Winter

(4)
A

utilization

0.9
+47.0
+ 5.2
+

cars

their railroad sidings. Now they cannot get trucks
position to accept rail shipment.

over
in no

are

amount.

and

of capacity and

or even less, according to "The Iron
Age," national metalworking weekly.
'
On the basis of a nationwide survey of mills and their cus¬

April 15, outstanding indebtedness
Home Loan Banks
Will have been reduced by $26,-

(Special to The Financial

blacktop

(

5.0

30% of the

month

of the Federal

$680,235,000

—

and barges they
■•; + ;'>+:+./

(3) Some consumers became so enamored of truck service
when they were living on minimum inventories that they poured

1958
$12,531,020,222
932,419,676
804,000,000
680,360,253

trucks,

licenses.

1959

.boosted

Long Could Steel Users Hold Out in Event of a
Steel

940,864,280
1,182,000,000

——_

715,764,119

How

000,000

the

Clearnings Up 3.1%

April 4—
1959
___$11,907,396,047

Boston

consolidated notes
dated April 15, 1959 and due Jan.
15,
1960
was
made yesterday
(April 1) through Everett Smith,
fiscal agent of the Banks, and a
group of securities dealers.
The
notes were priced at 100%.
Net proceeds from the offering,
together with current funds of the
Banks, will
be used to retire
$106,000,000
notes maturing on
April 15, 1959.
Upon issuance of the new notes
and retirement of the notes due
non

York

Chicago —J—
Philadelphia

of $80,000,000
Federal Home Loan Banks 3.80%
offering

Public

mortgages.

clearings this week will show, an increase ..compared.
with a year ago.
Preliminary figures compiled by us based upon
telegraphic advices from the chief cities of the country, indicate *'
that for the week ended Saturday, April 4, clearings for all cities
of the United States for which it is possible to obtain weekly clear¬
ings will be 3.1% above those of the corresponding week last
year.
Our- preliminary totals stand at $23,264,410,480 against
$22,555,660,385 for the same week in 1958. Our comparative sum¬
mary at the principal money centers was as follows:

party

his

conventional

Bank

Arizona.

stable, in large part due to
on

cars,

%">.:

(1) On some railroads, 25%

been based mainly on variations in Federally
These have tended to be placed at a competi¬

other hand, has remained relatively
the free movement of interest rates

•

(2) Many of the independent truckers did so poorly in 1958
that they could not maintain their equipment and can't pay for

plans

Nelson
to

M r.

Sire e t.

get the freight

Problems:

need.-

disadvantage by their interest rate ceilings in periods of
strong demands for funds in the capital market and rising inter-,
est rates.
Conventionally financed home construction, on the

cannot

tive

almost

years

economy

gage financing has
insured mortgages.

April 30,

after

Probably the major factor in this pattern has been the chang¬
ing availability of mortgage credit, as competing demands lor
Jong-term funds tended to rise and fall with the cyclical swings
of the economy as a whole. The up and down movement of mort- %

the

Inc.

trafficmen

page

The Slate ef Tiade and industry

•CHICAGO,
son,

jrom

steel

metal, home scrap, and metal returned by customers.
The steel stockpile situation is mixed, the magazine said.
Some consumers will have enough metal to weather a long steel
strike, but others will be caught short.
Last month, steel users added about 1.5 million tons to in¬
ventories even though they chewed up steel faster than they
had anticipated.
In April, another 1.5 million tons will be added.
By June 30, users will have upped stockpiles to 21 million tons
(from 13 million on Jan. 1), even though the figure is lower
than anticipated earlier.
A transportation tieup in steel deliveries is
feared, "Steel"
said.
Finished steel is piling up on shipping platforms because
-

Lumber

shipments

488

mills

reporting to the National
above production for the
week ended March 28, 1959. In the same week new orders of these
mills were 3.7% above production.
Unfilled orders of reporting
Lumber

Trade

Barometer

mills amounted

were

5.6%

41%

of stocks.
For reporting softwood mills,
equivalent to 21 days' production at the cur¬
rate, and gross stocks were equivalent to 44 days' production.
For the year-to-date, shipments of reporting identical mills
were 1.0%
above production; new orders were 5.7% above pro-:

unfilled orders

were

rent

duction.
For

week

March 28, as compared with the previous
of reporting mills was 0.8% below, shipments
new orders were 1.2% below.
For the latest

ended

week, production
were 4%
below;

week, as against the corresponding week in 1958 production of
reporting mills was 8.3% above; shipments were 9.3% above; and
new

orders

were

above.

Business Failures Down in
Commercial
in

and

the week ended

industrial

April

failures

2nd Week

declined

mildly to 284
April 2 from 297 in the preceding week, re-

Volume 189

Number 5836

...

The Commercial and Financial Chronicle

(1655)

ported Dun & Bradstreet, Inc.

Casualties were considerably less
when 352 occurred, but they remained
well above the 231 in 1957.
Continuing\below the prewar level,
failures- were down 4%",*'from the 295'.recorded in the similar
than

numerous

be as¬
they too will benefit
by having the investment savvy t0
buy
stocks--when other people

Securities Salesman's Corner

'•

involving liabilities of $5,000 or more accounted
for all of the week's downturn, falling to 241 from 265 in the
previous week and 306 last year.
On the other hand, small fail¬
ures, those with
liabilities under $5,000, increased to 43 from
32 a week ago, and came close to the 46 of this size in the cor¬

don't want them.

times

By JOHN DUTTON

of $100,000 as against 42

excess

was

Food Price
31

the

last week.

Fractionally

week

the

Index, compiled by Dun & Bradstreet, Inc. On March
slipped 0.5% to $6.16 from $6.19 a week earlier. It
from the $6.60 of the comparable date a year ago.
quoted higher in price "this week were wheat,

The

Dun

the

Bradstreet

total

Wholesale <Food

Price

Index

repre¬

Wholesale

■

this

order

build

busi-

their

week

can

business.

What

too

they need

duction.

Daily Wholesale Commodity Price Index, compiled by Dun &
Bradstreet, Inc., declined to 278.73 on April'6 from 279.66 a week

large

On April 1 a new 1959 high ofT 280.05 was reached.
Although corn prices slipped at the end of the week, they
finished .appreciably higher than a week earlier; corn volume
expanded noticeably and supplies in many markets were light.

the

Both

tive

year.

act

problem

for

who work

domestic and

export buying of wheat moved up and prices
moderately Higher. Purchases of rye were steady and
prices remained close' to the prior week. While oats prices were
lower at the beginning of the week, they picked up at the end
of the period. ; Expectations of increased exports to Canada en¬
couraged the buying of soybeans, and prices increased substantially.
Domestic purchases of flour lagged -during the week and
export inquiries were down noticeably. Flour prices dipped moder¬
ately and stocks expanded somewhat.

There

were

some

Plan

•

the

strong

very

future

X1_

one

can

optimist

about

securities

busi-

also

that

aware

am
1_

•

certain

ob-

very

/<v

<fV 4-

<11 r

vr.-l

4-1 toirh s-\sQ

4-1-*

«-*

y-»4-

A vi

was

nll-rr

l\/\l

Atrr

^1:

*-*

prices on steers matched these of the preceding week. There was
a slight decline
in lamb prices, while trading and supplies were
steady. '
" V
' ■ ' '• V'.-''
;
Cotton, prices on the New York Cotton Exchange moved up
at the start of the week, but declined aVthe end of the period
finishing unchanged from the prior week. United States exports
of

cotton

the

bales, compared

week

ended

with

last Tuesday

came

certain

-.i

time,

dwindles

lowing

of both

Easter
set

the

most

April 1

total

week

year

ago

The most

lines.

furnishings

ago.

Interest

maintained, according to preliminary reports.

obtain

volume

retail

trade

the

ended

week

higher than the similar calendar week

to 8%

1958 week.

•

•.

While

coverings and draperies were
close to a year ago, sales of linens were down appreciably; the
usual post-Easter rise
in linens is anticipated in the coming
weeks.
Decreases in refrigerators, laundry equipment, and tele¬
vision sets held total appliance sales moderately below last year.
purchases

floor

Nationwide Department

16%

above

like period

In the preceding

last year.

increase of 17% was recorded. For the
weeks ended March 28 a gain of 12% was registered.

week, for March 21,
four

According
sales
2%

the

in New

increase

Federal Reserve System department stare

the

York City for the week ended March
that of the like period last year.

from

ceding week,

March

for the March

14 week

21,
a

increase

7% decrease

of 16%
was

was

recorded.

28 showed
In the

reported

pre¬

and

For the four

power
The

times

rides
to

Pacific Coast Stocfc Exchanges.
Now With Morgan & Co#
(Special to THE Financial Chronicle)

ANGELES, Calif.—Robert
now

affiliated with

formerly with Dempsey-Tegeleij1
& Co. and First California Co.,,

viiv

2 With

Bonds will

Shearson, Hammill

(Special to The Financial Chronicle)

research
mand.

connect^

ar"

S^amon

*9n

Avenue-

riraw'*

Stephenson, Leydecker Add

ended
in

(Special to The Financial Chronicle)

OAKLAND, Calif.
-

—

Thomas G.

...

»_?-

Howard is now with Stephenson,
Leydecker & Co., 1404 Franklin
Street.
.

.«.

m -

Joins Merrill Lynch
(special to the financial chronicle)
SAN

DIEGO,

Calif.—David N,

Cohen has become connected

with

.J+y and do Merrill Lynch, Pierce, Fenner ,&

facilities

at your comWork harder when you are

busy and
s0

you

hard

;

times

not

are

£°°d*

savings accou t

y°u can

...

„

have for

rainy day is

customers who will give you some

a^iX^ aT
jFu S- '

Adds

Brooks & Co

won't have to work

when

50 GROWING

1959

is to diversify

your
who sits back

man

the

few large

speculative

future

YEARS

and

present

trading accounts

stock

that

come

into what I think is now the

final

leg

only

thinks

bull market,
himself if he

great

deluding
he

has

clientele.

sound

be of several years'
duration). But when we do have
a
correction, and come it will
even
if several years from now,
the man who depends solely upon
speculative accounts will regret

with every
On

that

did

not

encourage

easy

laurels.
to
a

sit back

to
is

business

not

busy
a

day
that

are

letter to

your

difficult

telephone by
too tired to

some

our

new

passing year.
golden anniversary,

pros¬

a call on
prospective investor
who might become a client, but
unless you do put out that effort
you won't do it tomorrow either.
Having learned this lesson in
the thirties, and
having rebuilt

account, or make
other

some

two

don't

clienteles

want

lifetime,

again

new

salute the exciting

of the entire electrical industry. And we salute
the progressive area that has helped to make these
years "golden" ones for us and we look forward with
confidence to the future.

......

$53,000,000. With
scheduled for com¬

Our 1959 construction budget is

additional

two

generating

units

pletion by 1960, Vepco's system capability will be
2,200,000 kws., or over four times that of 10 years ago.
1958

HIGHLIGHTS1958

Property and Plant

Increase

over

1957

Operating
Balance

Revenues

Earnings

per

$51,000,000

$139,660,000

$10,060,000

$ 23,537,000

Stock

for Common

$625,000,000

Number of Customers

Electric

Sales—thousands of kwh

Service

Area

Gas

Peak

Load—kw

Sales—thousands of cubic feet

For

copy

our

1,821,000

$1.66

$.13

815,000

19,000

6,683,000

496,000

share (14,200,000 shares)

pect who may become an invest¬
ment

"miracles" of electricity

well.

efforts during

the

at
you

some

very

rationalize your

progress

may

investment type

today

leisure and pleasure

(This final leg of the present bull
market

cities; bringing new power and productivity

the many

traders

light bulb came the glittering
linking continents and lighting

From the glow of a

world

1,439,000

106,000

6,814,000

1,592,000

1958 annual report, write to the Secretary,

VIRGINIA ELECTRIC

the

March

increase

corresponding period

in 1958.

was

noted

over

the

sixties

several

years

should

run

bear

into

market,

Louis M. Aubert has been added
^
0f Brooks & Co., 33$
pine Street, members of the Pacific Coast Stock Exchange,

1909

ANGELES, CaHf.—John B.
Dunbar
and Walter
Walter F.
F Madden
Madden
unbar, jr
Jr. and
e now connected with Shearson,
^
Hammill & Co., 520 South Grand

AND POWER COMPANY
'

weeks
volume

LOS

a constructive job and cooperate Smith, Inc., 311 C Street.

ways

which he has added

write

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's Index for the week ended March 28,
advanced

New

Tomorrow

soundest

insurance

the

saying

Store Sales Up 16%

the

business.

Despite slight increases in upholstered chairs, retailers re¬
a
moderate year-to-year decline in over-all furniture

ported
sales.

earning

noticeable gains over last year

the similar

for

Prepare

new

The buying of children's merchandise advanced appre¬

over

account!

One

in women's apparel
occurred in dresses, accessories, and suits: volume in sportswear
and coats was up moderately.
Increases in men's apparel were
somewhat less noticeable; best-sellers were suits, neckwear, hats,
and knit shirts.
Interest in men's topcoats remained close to a
ciably

XUi

depend too much

large

for the lean years is
complicated than it would
more stable profession.

be in

ago,

year

thi

funy with the best statistical and

secu-

fraction of its

oollfi;
of

reserves

and the 1958

according to spot estimates collected by Dun & Brad¬
street, Inc. Regional estimates varied from the comparable 1958
levels by the following percentages:
East North Central and
Pacific Coast -j-7 to +11; West North Central and South Atlantic
+ 6 to +10;* East South Central and West Central +3 to +7;
Mountain —2 to +6; Middle Atlantic —1 to +3; Now England
—2 to +2. *
year

few

fol-

years

o
™
®
Gr>rinv%tr^t
vLv

Mit

former size, the problem of setting

Easter Week,
and exceeded

high level and noticeable gains

dollar

was

home

sustained at

last year were

The

calendar

(Noticeable year-to-year increases in apparel off¬

week,

declines

similar

passenger cars was
over

areas

buying matched that of the prior week

consumer

that

some

the

great boom in the

rities markets to

Easter Week Sales Exceeded Last Year's
Although bad weather cut gains in

depending

above, during a

don't

and

peak years, and then his in-

come

OII IV"

4-"

—

usually

bracket,

few

dllU

be more popular than
stocks less so, and good
mutual funds, local securities and
bank stocks are usually saleable
in both good times and bad. Keep
adding more accounts as long as
you
can
service them properly

tax laws which severely penalize
a
salesman who may be in the

50%

account

someday

-Tjhe strength and duration of

week

nle+on

customer doesn't

today,

the speculative excesses that pi o-

about 47,000

time then

0f securities you sell.

ceededit, a recovery then sets in.
(3) Due to the present income

earlier and 100,000 in the
similar period last year. For the current season Through March 31
exports were estimated at 2,071,000. bales, compared with 3,779,000
in the comparable period a year ago.
61,000

„

head-

The formula is simple—diveryour business as to the type

^salesman or customer s sjfy

;v,;

trading

time-waster should be

business.

your

representative who sells stocks to
steady. The
the general public operates in a
buying of coffee rose appreciably, but* prices remained at prior
volatile and cylical business.
week levels. Although cocoa trading was steady, prices slipped af(2) The buying habits of his
the end of the week and finished fractionally below a week
clients tend
to
swing from the
earlier.
..'v., +
' v+s,+'-'•* ■V'.:.
heights of optimism to overopHog receipts in Chicago expanded somewhat this week, but
timism and then plummet to pesprices declined moderately; trading was close to the prior week.
simism
where a period of semiCattle receipts
were" steady, but transactions slipped slightly;
stagnation takes
After a
i

Sugar prices slipped? somewhat and

have which are
to handle. The

the bread and butter elements of

recognized, to wit:

(1) The

ANGELES, Calif.—George

LOS

iarger investment accounts too by
all means> but don't find y0Urself
concentrating too much on a few
large aetuuuib
accounts while
neglect
wnuc you negieci,

and historical facts must be

vious

LOS

lace

smail account that is

CtCvUUillO)

during the next decade, I

ness

scattered

the

common

(Special to The Financial Chronicle)

Ifz^acSunis^ndSe'tettS

Although I believe that

for rice and prices matched those, of the preceding week.
Exports to the Far and Near East, areas and to Cuba are expected

coming weeks.,

you

discouraged. If

orders

to pick up in the

lreftT
W3S formerI#
Barth & Co.
,

accounts that you

waste your

Tomorrow

for

Co., 623 South

Morgan & Co., 634 South Spring
Street, members of the Pacific
Coast Stock Exchange. He was

ache and

finished

h!:

H. Desbrow is

very

men

can

profitable for

the. highly competiof this business.

area

other

one

Mitchum, Jones Adds

diversify, and that is in add[ng to the number of medium size

and

securities

most

nationally

issues of

new

W1*"

stocks.

There

not the same

one-tenth

ANGELES, Calif.—Gilbert

just occasional buyers of speculative stocks.
Their trading business they take elsewhere,

but

obtaining

keeping accounts

Possibly not more
than 5% of my clients are traders
and outright speculators. I don't
consider these people clients but

concerned

salesman

funds;

bank

If you control some very

Today

LOS
TOU

stocks; four-tenths general market
stocks; one-tenth local issues and

institutional,; fiduciary, or
you may at times

need

do. then?

syndicated

thought-

,family business,

of the corresponding date last

is built along the following lines: three-tenths of my
production is in tax-exempt bonds
to banks, institutions and individuals; about one-tenth in mu-

about their future pro-

much

and
declining
simple as that.

clientele

tual

(Special to The Financial Chronicle)

apathy,

men who are primarily
takers, and although they
also have their problems, I

doubt

The

below, the; 281.43

salesmen

upon

may

Commodity Price Index Off Moderately

was

some¬

speculators

—

Joins E. F. Hutton Co.

investor

securities

Reflecting lower prices on steel scrap, hogs, lambs, and sugar,
the general, commodity price level fell
moderately this week.

earlier and

ideas

fully considered by everyone selling securities creatively.
Quite
frankly, there are some fortunate

of the

wholesale level..

creatively

offer

price per pound of 31 raw foodstuffs
and meats in
aim
m
general use-.
is nor
not a
a cosi-oi-uving
general
use. - It
u is
cost-of-living index.
Its
inaex
us
chief function is to show the general trend of food prices at the
sum

who

offer

prima-

applicable to every specific salesman's
particular
purposes,
but
most certainly the suggestions we

beef, lard, cottonseed oil, and hogs.
Lower in price
flour, barley, bellies, butter, milk, cocoa, and eggs.

sents

written

of the ideas presented are always

rye,

were

Solid Clientele

service, performance,
and sound merchandising principies. It is not intended that some

Commodities
corn,

column

rily
ness

Wholesale

index

down 6.7 %

was

fractional- decline-last

This

Wholesale F ood Price Index Down
There

Investors

this

know

do.

never

Construct

responding week of 1958. - Twenty-four of the failing businesses
liabilities

that

sured

Casualties

had

Then you may also

orders.

year-ago

week of 1939.

7th and Franklin Streets,

Richmond, Virginia

The Commercial and Financial Chronicle

(1656)

first

irnm

r
,
KsOniinuea

other markets — these funds are

rtaae

jTvm jum

;

PvAIVfSltl
1 lU||*€llll

FmaMAIMIII
ilCODUDIiv

JJJI

•

■■

there is no unem- to reverse its easy money policy
Russia and China
thus slowing down the growth
and they are achieving a startling of the money supply. On the other
rate
of economic
growth.
The hand, the Federal Government is
stability of the price level or in- promising to bring about a balflation is not vital under their anced Federal budget.
that

ployment

accelerated pace in an effort

system because they are not conTo
continue
an
easy
money
profits, wages, fringe policy and substantial budgetary
benefits or savings. And, neither deficits
until
the economy had

cerned about

willing to further increase its tax
~

Thursday, April 9, 1959

It is being said recently that an of pensioners and owners of fixed

adequate defense is more important than a balanced budget
I

income obligations.
This is an
interesting idea, but it constitutes

don't believe they necessarily
have any relationship. If we need
a deficit in order to maintain
economic stability because of a

built-in inflation. It takes away
all restraint and would, therefore,
accelerate it. And what would
become of people and institutions
that have bought in good faith,
and own present outstanding obligations? And what would happen to the needed stability of the
American dollar in the world
market under these conditions —
when it took more than $2 billion
in gold last year to stabilize it?

deflationary development,

we
deficit — whether
0j- suci! financing.
It certainly lor defense or any other purpose,
canuot finance more than a $40 We may need a deficit without a
billion defense program (which, large defense program to mainjn my opinion, is beyond the tain production and employment,
needs for adequate defense), and but we should not permit a deficit
at the same time meet all of the solely for the purpose of mainother demands made upon it' taining an adequate defense prounless the American public is gram if the effect of so doing is
impact

ignore the inflationary

concede

to hedge against our depreciating
dollar.
From this situation it
should be apparent that the govern'ment cannot continue to finance heavy deficits unless it is

TlftlVAACllllV Infl^tinn
UUVCttalllH MllIIIllIWll

CAah
l9IU|l

ffl

flijl

into stocks and real estate

going

...

should have

inflationary. Such a situation deJ-

—

tt™™*

Nothing more urgeni

Nothing is more urgent, unless

defense, than
growing belief in the
inevitability of inflation, and to
be

adequate

to arrest the

society."""

-------

iJj^atVonary''situation"" f

nof ercd.

believe it possible to have all ol
again, that to achieve our the freedoms which we demand,
obiectives will always be a source on a basis ol stable prices and.
said it before, and want

I have

great political and economical

controversy

because

Mates We Cannot

money..

organize our economic affairs so

Dilemma in Curbing Wage-Price

dolla/be re-established at°ho<me
clol ar be re.esUbkihed at home

wemanas

full utili-

as well as tnrougnoui tne woiia.

nomic

world meets this problem by the economy from every direction, government ana uie moneiary ana XZrhJrr^iiX rnfe
sacrifice of the personal freedoms. These are due to the rapid popu- credit policy of the Federal Refh/fahl®
unemployment situation is lation growth, as well as the need
spotty. In some areas there to maintain and improve our posiunemployment - some tion of strength throughout the
which is no doubt due to union world.
Worthy, as are the many

serve to maintain economic sta-

for further profits — and dejnahds pricing the workers out programs the government is called
increasing ranks of oldsters call of the market.
In other areas, upon to sponsor and support, such
for
higher
pensions.
However, however, shortgages are develop- as highway programs, foreign aid.
everyone expects these benefits in
among
skilled health, aid to education, agriculdollars of stable purchasing power, workers.
Russia would
manage ture,
conservation,
and
many

tary and crecht pohc^ are entirely
inadequate to maintain reasonably

want

leaders

less

money to spend-the
organized labor want

and fringe benefits for
hours
of work — business
pay

Gur
very

is
0f

s|ri£Us

presses

"^.particularly

all

Unfortunately,
has

divide

services

the

the goods

are

able

economy

could

money

create, which is, of course,

,lmltless'

Centralized Agreement

«v- a»?"•
•?tor
dilemma

creating
bers

the memwhose constit-

Congress

situation

this

and workers

produce—

not the amount of

and

by
where

develop

Would

the others, the country docs not have

moving

the work is, capacity to meet all the demands
work where made upon it. The members ol

people are — whichever was
most economically desirable

the

combination

the

government,

Congress and the Federal Reserve
successfully
forces.

diverse

deal
To

these

with

ade-

this

and

This

agree
have
the

eXn?,rin«

thp

cent recession

hntinm

with

irinee

and

increased

benefits

©f organized labor

prices

Country

the

was

wages

the

and

large

a
•+

+•

tlrsf'thne

confronted

vc~

with more than"5

nart

increased

the part of big business.
meet recession problems, the government expenditures were substantially increased.
This, together with the reduction
in the tax intake, brought about
by the recession, will create in
the
fiscal year of
1959 a cash
In

order

deficit

about

$13

billion.

The

Federal Reserve supplemented the

government's fiscal

policy by an
easy money policy which brought
about a material growth in the
money supply. Although the fiscal
and monetary policy on the part
©f the Treasury and the Federal
Reserve has brought about a rapid
and

substantial

recovery,

this writing, still

are, at

there
four

over

million unemployed and considerable
excess
capacity.
Notwith-

standing
mauds

this

the

situation,
part

In
aLVnJnae
in.cS
n

and

»<* be a factor in the decision.

should^be.as wiUmg to vo e ^ condilio^s 0b

w-"m
—— —
be desirable for the

may

government to

industries

can

be developed or old

industries be revived.

This, how-

only
be successfully
through the combined efcan

everi

dolKJ

programs

the

budget

fevswur.

business

believe that

ilationary dangers confronting the

indicates

that

the

losing confidence in the

present

need

St. wl

i„
an

the

press,

example

year

ve'Y
short-term financing through with
tbe
commercial
banking

system

^ndhthela^e-s
derCh with the assistance of the Federal
the Feds government.
essj monej policyv Reserve—which only adds further

snd

together with increased

wages

and

unemployment
facilities,

has

created

to inflationary

The
not

pressures.

long-term interest rate is
influenced
by
the

greatlj

dictate

largely

the

ReJ( #ts Cr™»in* Inflation
Solution

and the real

all know

public

?hbe

answer

onv

for tho

Crte

is a the

rpasnn

upon the savings
These

good

for

place to set
would

economy

The

reason

the

constitute

public

vear

run

that

establishment,

has

bought such a vast amount of in-

income

because

they

their

of S332 000

thn inteeritv of thoir savinec

than

government would

protect
Tho

t^fh'e cost^of
costs oi

soai'11ng

Prices

concurrently,
skidding

m°Hgage5

market

purpose

during his last cind

mSt exSfve veaf
"tZ t™ Stism
t^iess

trv

now

well

that

gooas proaucea.

^ 0/ffrowth fn^aHonS
nJduetfvftv^ should^the basts
'

increases
k

il
m

for

and

the

choice

made

how these funds shall be invested,

particu- The rates offered on bonds and

the securities of the Federal
Ckrvernment. This developing sit-

nation caused the Federal Reserve

market

are

been going
attempt to attract investment funds away from

aware

vagances

are

some

the

extra-

and abuses since he pro-

mavbe

tion

worse

that

our

Govern-

have

ber of

used bv the government
to 35. *

limousines

and

chauffeurs

from 99

of their fears

indiea-

of further in-

nVrmit
tn

Jndlpnvo

fair

retnrn

P
wnnout incieas®1
'
It may be expected that the
employer could and should absorb
most of these added costs; however, let us consider what the
amount of business profits are and
what happens to them. According
to a study by the Twentieth Centl?ry Fund> total wages and salary
disbursements were 50% of the
national income in-1929—and 73%

11 in 1955—whereas dividends
.decl'cas„e,d, f^To,,/1be same period
Thn
nrkt,V sh^n°nf^ S
Wnmn ^rnm
iqsn
tn
low
"
,.

£l0ll?n^
share,

business

o^££amzed

ijS

~ ,™be',c'aj
represented

tbe
by

labor^

Escalation has been suggested
as

means

preciation
power

of equalizing the de-

of the

the
dollar,

purchasing
in the case

contends,

in.—

RetalLd'eornoraW
•

"th

prpatpct

cm,rnp

r,f

caPltal for. industry.

If corporate profits

nated, as

flation.

poses to sharply reduce the num-

steadily

Inrh ifmit!
share nfJJln
L fn lh. 1

nllv

Con-

and other extravagances

mortgages
up

frinee

and

thPTanPP

coun- ^easGd< bv
It is apparent
beJinnine from these fig"res that business

oeoole

our

foreianers

of and savings funds available in the Gf the Joint Economic Committee bonds and mortgages is

have

produrad

goods

^^?,re,w

twice the Truman budget for the real danger confronting the

snme

tne

were to

more than 65,000,000

believed

a requested increase for next
This is

renewing its contract. If all
01 lhb otbei" ^nenrL^

th«t

eapTtaUstk

1,250,000 workers, will demand
from the steel industry when its
present contract expires June 30,
a billion dollar package as * price

■

eeen

and

wages

saassKS saws t&.HL&i'ASns:

TmITs0 reflprf^|ti?n Psyc.h°l0^- monetary policy of the Federal shaking the public confidence in ment will do nothing about it.
Jf r^i fJt
-D
strength Reserve. It depends primarily the good judgment of our law- Their preference for low-yielding P
If PnC-es anC! espe" upon the amount of ^vestment makers. I note that the Chairman stocks rather than high yielding
stocKs.

their af-

representing more than

There is an increasing laxity serve curbs the growth of the monopolistic power they have
and waste in the appropriation m011Cy supply, or the Federal been able to wring from the econand expenditure of public funds, government develops a substantial omy benefits far in excess of their
There always seems to be a tend- budgetary surplus, the wage-price contribution to it. These excess
ency on the part of governments spiral would continue with dev- benefits have largely been passed
and public bodies to go 011 in- astating inflationary effect.
On on
to the public in increased
creasing expenditures and taxes,the other hand, the dilemma is, prices. This development is and
thus helping to feed the endless that by curbing these inflationary for some time has been the prinself-serving demands of their in- pressures, recession is brought on cipal reason for inflationary defluential constituents—very often with resulting unemployment and velopments. I understand that the
not in the public interest.
idle facilities
steel workers union, numbering

the principal source of capital accumulation upon which the
growth of our system depends.
Why should anyone buy life insurancc or annuities, government
or municipal bonds, utilities or
railroad bonds, mortgages, or any
*he economy nr taxes and what obsolescence, would not strike other kinds of fixed interest]t c'an borrow from the savings plenty oi pay dirt. Likewise, there bearing obligations payable at a
°J the public. If this is insuffi- needs to be a close re-appraisal future date in dollars depreciated
cient- ihW must rely upon credit Gf the foreign aid program with at the admitted "creeping inflairom the commercial banking ail eye to eliminating waste, du- tion" rate of 2-3% a year? For
system made possible by tne Fed- plication and greatly reducing its the government to sell such obfcral Reserve. This operation ere- tremendous overhead. The huge ligations and to permit conditions
a*es new money and, under pres- an(£ increasing cost of the farm to develop where not only their
ent conditions, is inflationary, program, running at a rate of obligations but all other fixed
The government is having great more than $0 biljion net this year dollar obligations are being paid,
difficulty in •refunding its huge is no longer justified on any basis, including interest, in dollars dematurities, as well as raising new a solution must be found which preciated from 2-3% to 50%, demoney to meet its deficit—even wiu greatly lessen this burden on pending upon the maturity dates
though it is paying the highest the taxpayer.
"
—is to say the least immoral if
interest it has paid for many
jf one can
credit
the reports not downright dishonest.
This

huge labor

fringe benefits without control of

F^eral Reserve and aggregate. No doubt the defense,
fiscal Polljy announced by program, which represents nearly
goy,ei'5imfi" 7~°{
60% of the budget, is a good place
balanced budget at
e ear lest |0 begin. It is hard for me to
Possible date.
,
believe that a realistic stream,T.he governments only source lined program lcr adequate deincome is what it takes from fense, eliminating duplication and

the

one-fourth of the working force,

bac b°t"
disappear

ou*

years.

leaders

nr«*ani7afinn* and

tTle

largely

rrartirtnoliev'S-ried
?laCG !",a ,1?u1dgct of ^78 biI1J?n Nomocracy rests
crecl1^ P°llcy being now cairied £0r substantial economies in the of the public.

public

of success in attaining

filiates,

the present in-

bave

in attaining

success

CompeUbon

temporary expedient, seems to represents a political struggle.
it has been said that "creeping
me to. be incbt'nted m the present Nevertheless, each should be con- inflation" is the best answer to
sldered only in the ljght ol its this dilemma. I do not believe it

de-

Daneerous
uangerous Inflation
lniiaiion Psvcholnirv
rs.v ciiologj

idle

jna-cascd eosts

?gTi?0 d0"b ftab,bty "J. ,our currency This be in the White House where surance and saved tens of billions
further puce ernment
loss oi confidence
loices the gov- over $5 million is being spent this of dollars in other forms of fixed
to rely increasingly upon

ulcieases-

and

Jiw

ahead

decisions bv

iri

that

hurdles

Belabors Labor
The

unbalance

organized

new

which

the

000^000 unenGloved^Tnd
the

lor

,bF<;

confess

must

couraeeous

uusinc. s, uecause Dusincss iinas it

tbrts
of, private
enterprise and
problems jbe joca] and state governments,
courage
to
act, assisted by the Federal Governin my opinion, now is the time
ment* An extension of unemploy- to
face this budget problem.
I
possibly more than we can ment insurance payments, as a
realize that every appropriation

vote

full employment and production, S derrree
"u the bas,s of sta.Me prices WUh anydegree
' J'c ccotKimy running m high geai

sponsor

the

quately it would be necessary for
them

Congress who are so willing lo

jnhty. However, it is becoming •
'
increasmgly clear that even with However I
balanced Pedeial budget, mone•

Theftwishes of the people would

give assistance in
uents
want easy
money,
lower those depressed areas where there
prices,
higher
wages,
greater
serjous unemployment by makprofits and fewer taxes. Only a jng funds
availably where new

can

We all agree with the desirab -

I have attempted to show, irt^a

We all recognize the many new

greater share of
pie than it contains. Government and other public bodies
wants

at the same time, have

b'annot Meet All

states w

to say

munistic

is the
^ocietv

were elimi-

case

there

nt«*Trfiffor-lnno

com-

would

•

ver^ iiRie difference m the prices
Paicl by consumers for goods and

Number 5836... The Commercial and Financial Chronicle

Volume 189

services.

income

Corporate profits,^ after
amount to about
-the
national ; income.

Approximately
amount,

dividends.

3 %,

dividends

collects

1%%,

one-half of this"
is disbursed as
'$%, is
Of the

business.

esti¬

it 'is?

disbursed,

that the

ment

Federal
between

and

the remainder to
to spend, or to

leaving

save.
\

-'.-a

Cheap Price for Progress,
the

and ^ their.

corporations

shareholders

did

exfetytke

not

amounts collected by the govern¬
ment from them in taxes, and' the
amount retained in the bOsineSs,

would

have

out, in one
way or another, of the national
product. Therefore, the total con¬
sumer
purchasing power would
come

not be increased more than

—2%

even

1 V-> %

if business profits 'were

entirely. I think this
extremely cheap price to
pay for the benefits we reap from
the system of capitalistic democ¬
'

anywhere
At that tinjpie its

near

its

cars were

capacity,
returned

rapidly as possible so that the
other carriers would not have to

The carrier has announced that

;
it

shares outstanding.
The
small capitalization gives the railway high leverage of earnings as
-they expand,
The road is in good financial
condition.
At the end of 1958,
mon

cash

considering

cash

equivalents
$8,700,000 and current
liabilities
were
$7,700,000.
New working capital was $7,500,000 as compared with $8,500,000
at the end of 1957.
On the basis of the traffic outlook for coming months, and the
and

amounted

year ago.

asking for
tenders on up to 100,000 shares of
It should be apparent that un¬ the
384,000
shares of minority
less the government and the Con¬ stock
outstanding.
The
tender
gress has the courage to control would expire April 30, 1959. The
the rapidly growing monopolistic purchase of the stock would be additional other income to be re¬
powers of organized labor, further financed by a bank loan which ceived from equipment rentals, it
inflation is inevitable.
The only later would be refunded by the is possible that earnings this year
alternative is to stop the growth sale of first mortgage bonds. Cur- might reach close to $11.50 a share
of the money supply; ultimately rently, P. & L. E. does not have as compared with $8.90 a share
bringing with it heavy unemploy¬ any mortgage bonds outstanding, in 1958; $11.68 in 1957, and $11.47
ment and idle facilities.
only equipment trust obligations, in 1956. Currently, the road is on
We cannot tolerate having pri¬ It has been officially stated that a $4 annual dividend basis, while
vate groups dominate our govern¬ the reason for this rather unusual in each of the five preceding years
ment and our economy by means procedure is less exposure to Fed- the annual rate was $6 a share,
of organized monopolies.
For a eral income taxes. The bond in- In view of improved earnings,
few men at the top to exercise terest would be deductible before control over expenses and good
such power in effect constitutes taxes,
while dividends on the financial condition, it would not
If the full be surprising if the rate was ina. private dictatorship of public stock are after taxes.
policy and must, in the interest 100,000 shares are purchased and creased before the year-end.
of our country, as well as in the retired, the 441,000 shares held by ■
; % \ . ^ ;
was

He Would Control Labor Power

real interest of the rank and file

New

sent 60.8%

labor

itself, be courageously
dealt : with
by " both
political
.parties.
This-can no longer be
considered a party issue.
It has
assumed the proportions of a na¬
tional issue; almost as important
.

as defense.

;

York

for

the

repre¬

outstand¬

valuable

Central

S.D. Fuller Offers Gold

53.4%.

now owns

The P. & L. E. is
nection

would

of all stock

ing. The Central

con¬

with

its

large coal origination and finished
steel
products from
the mills
which it

•

Central

application of that power.

There is

So long as

Americans

such operations would amount

royalist than the King

Catholic than the Pope. In the absence of any American
restrictions

the

reimposition of fhe British ban would

merely mean that Americans would cover their forward

transactions

gold

Zurich

other market

in some

instead of hi London. And it seems difficult to

what

see

advantage the United States would derive from this.
To some degree

forward buying of gold

can

be covered

shies of gold for forward delivery. The Soviet, Gov¬

ernment

particular is in the habit of selling its gold

forward

for

ment

delivery. Apparently the Moscow Govern¬

realistic

than

private

many

individuals in Western countries. It considers
tion of gold in
takes

firms
a

and

devalua¬

the near future to be most unlikely, and

advantage of the premium which it is able to earn

by selling its gold for forward delivery.
Other Comments
In

all

increase of the possibility of a
dollar devaluation as a result of a victory of the Demo¬
crats at next year's election would discourage the Soviet
Union and others from selling gold forward, so that the
bullion firms themselves would then have to provide all
the counterpart to forward buying orders. As a
general
rule bullion dealers cover their forward sales by pur¬
chases of spot gold. This they are in a position to do, in
possession of dollar balances which they are entitled to
use for that purpose.
But they would not be able to
operate on a really large scale, unless the premium
should increase substantially above its present level, in
which case other banks would become tempted to take
a

hand

chase

probability

and

employ their dollar balances for the

spot

gold.

shows

moderate

speculation.

Seal Products Cony.

free to buy gold abroad, surely

are

trying to be more

move

any

ought to come from the United States.

British restrictions

any

»
"

growing feeling, however, that

in that direction

pay

industry for its revenues
'
consequently was inversely af-^ ^9^6 levels, income from 'this:.'
fected by the low rate of steel 'source could amount to around
operations and the drop in autor ,J$14 million as compared with
mobile production last year. t"? - ? $10,500,000 in 1958.: This would "
The Shippers Advisory Boards" amount to around $4.75 a -share
have forecast that iron and steel before taxes on the 825,003 corri-

the

Gold

restrict dealings in gold; it merely suspended

powers to

the per diem rentals. Now it
is in a position to benefit. If 1959
and ,cgr_ : utilization
approaches
the

carloadings in the second quarter
will run 47.9% above;
the like 1958 quarter; ore and coilcentrates, 63.9%; and automobile
and trucks 0.9%.
Coal and coke,
another
important item for
P. & L. E., is placed at 7.3% over

racy.

Barring a long strike in the
steel
industry, earnings of the
Pittsburgh & Lake Erie Railway
are expected to expand considerably over those of 1958. This railroad is highly dependent on heavy

of this year

eliminated
is

Foiwaid Dealing in

Pittsburgh & Lake Erie

Govern¬

shareholder

the

from page 22

The balance, or

retained in the

mated

Continued

taxes,

(1657)

So long

pur¬

the premium remains
of: any
large-scale

the " absence

•

widening of the premium wbuid be : the :obvious
danger signal. It is a pity the authorities, are opposed to
the quotation of forward prices of gold.
'
;;

Preferred at Par
S. D. Fuller & Co. offered pub-:

serves.

licly yesterday (April 8) 125,000
ritory served, including some shares of Gold
Seal i Products
floods which hurt carloadings and " Corp. 61//2% convertible cumula-'
the movement of traffic, loadings tive preferred stock. The stock,
of the road have been running which is offered at par ($10 per
well ahead of a year ago and share)
is convertible into the
should continue to do so.
There company's class A stock through
probably will be some slackening April 16', 1964.
of loadings in the third quarter
The company will apply $140,since industry undoubtedly
has 000 of the net proceeds from the
been stockpiling in anticipation of offering
to payment of certain
a
possible steel strike. Once the debt and $837,000 to various inthird
quarter has been passed, debtedness arising out of the purresumed activity in heavy induschase in December, 1957 of all the
capital stock of Kulka Electric
try again is anticipated.
Despite bad weather in the ter-

Great Lakes Natural
Gas Stock Offered
John

Cravin

Co., New
City, is offering an issue of
150,000 shares of common stock
(par 25 cents) of Great Lakes

York

Natural

Gas

Co.,

Inc.

per

share.
Great

Lakes

Pennsylvania
corporation engaged in the busi¬
ness
of
acquiring oil and gas
leases, sinking and operating oil
and
gas wells
in the State of
a

Expenses are under good conand
despite increased revand earnings
the budget

trol

Pennsylvania.
The net proceeds from the sale

enues

for

maintenance

way
is not
shares are to be used to
foj drilling operations and to expected to be increased but will
hold
to
the
amount
planned
for
increase working capital.
this year. Benefits from development. of the new
Youngstown
Yard are beginning to be reflected

the

pay

Phila. Sees. Ass'n

To Hear; Announce

Annual

Outing

PHILADELPHIA, Pa. —Joseph
C.

Wilson, President of-HaloidXerox Company, Rochester, N. Y.,
will address a luncheon meeting
of the Philadelphia Securities As¬
sociation on Tuesday, April 14, at
the Barclay Hotel.
ti
Spencer D. Wright, III, Presi¬
dent, of the Association at the
same

time announced that the

an¬

nual

outing of the Association will
De held on
Friday, June 19, at the
Overbrook Golf Club, Bryn Mawr,
Pennsylvania.'

operating economies.

lieved the carrier

30%

It is be-

can now

volume

handle

compared
with a year ago, without any large
additional operating expenses and
this

should

further

reflected

operating efficiency as carloadings increase. In 1957, before
the new yard was even in partial
operation, the road's yard expenses were almost twice as much
as
for the average road, on
a
proportionate basis.
ex-

year.

Eastern

industrial

car-

ing the year this will be reduced
to around 2%, or about the lowest
(Special to The Financial Chronicle)
which can be accomplished by a
LOS ANGELES, Calif.—Dudley road whose equipment is off line
H. Hosea, Jr. and David Zohn are much of the time. In this respect,
Franklin

with

Samuel

and

ice

per

equipment

•Two With Samuel Franklin

connected

Seal sells milk

products at both wholesale
and retail in metropolitan New
York City and in areas of New
York State, Connecticut and New"
Jersey. Headquarters are at Remsen, Oneida County, N. Y.
In the year ended Dec. 31, 1958

the other

not expected to be

riers, and it is believed that dur-

now

Gold
cream

The bad order
car level now is around 3%, exceptionally low as compared with

are

P. & L. E. should have additional

share on the combined shares
class A and B stock outstanding
at
end of the year,

(Special to the financial chronicle)

Pacific Coast Stock Exchange.

215

Hosea

West
was

income

this year from

use

of its

cars

the

recession

was

not

utilized

CONSECUTIVE CASH

DIVIDENDS

Have Been Paid From

5 to 130 Years
—

20 PAGE BOOKLET-

COST OF THESE BOOKLETS

—15 cents each

1 to 199—

200 up
On

orders

printed

12 cents each

100

more,

your

firm's

will

name

the front cover with the words "Compliments Of*

above it without further charge.

Commercial & Financial Chronicle
Wm. B. Dana Co.,

Publishers

25 Park Place, New York

Please

enter

our

Common Stock
'

Name

order

7, N. Y.

for

.copies

■

—

Address

"The Canadian

Booklets," and accompanying dividend tables.
\

LOS ANGELES, Calif.—Roy G.

Inc.

Mr.

On Which

Firm

Tipton has been added to the staff
of Morgan & Co., 634 South
Spring Street, members of the

Company,

Street.

Common Stocks

Morgan Adds to Staff

by other railroads. The road
formerly with Thompson & Sloan, has a large car fleet and during

Seventh

CANADIAN LISTED

Corp.; the balance will be added
1° working capital,
In December, 1957, in order to
diversify its business and enter
a ^iel.d W1j;h Sweater normal profit
margins, Gold Seal purchased all
th.e. capital stock of Kulka Electric Corp., second largest producey in the United States of
molded barrier blocks—component
parts in various electrical and
electronic equipment. Kulka also
makes other electrical and electronic components and devices,

consolidated sales of Gold . Seal
Products Corp. and subsidiaries
(including Kulka Electric Gorp.)
totaled ^,711,701 hnd net income
was $212,231, equal to 33 cen.s

Maintenance

penditures
heavy this

1959 EDITION

Date

—

The Commercial and Financial Chronicle

(1658)

ers

from page 15

Continued

Bank

News About Banks and Bankers
tpf broadened

York. The first year

serving as a "pilot" project
to other industrial banks, showed
a 20% increase in deposits and a
54% increase in profits.
V In 1955, Metropolitan Industrial

GRACE NATIONAL BANK OF NEW YORK
J:-'

Dec. 31/58

Mar. 31/59

power,

Bank

Bank.

State

cial

into Commer¬
This was fol¬

merged

was

Total

Govt,

and discts.—

Undivided

last year, by the merger
of Commercial State Bank and
the Bank of North America, to

profits—

lowed,

present
Commercial
Bank of North America.
An interesting sidelight of the
modernized headquarters is the
fact that Mr. Leichtman's office,
as it has for 30 years, remains on
the banking floor, in a form of

and is both in¬
formal
and
easily
accessible.
Through the standing glass parti¬
tion, visitors can see at a glance
if he is available. This informal,
friendly
note, retained in
the
modernization of the main office,
has come to symbolize the Bank's
concept of highly
personalized
planning,

open

service.

growth,

from

700

years ago,

industries from toys to machinery,
Commercial Bank of North Amer¬
ica

has

ciated

been

with

New

most

closely

26,207,420

38,807,436
26,425,136

discounts

27,279,120
86,487,889

profits—

1,362,961

—

secu¬

rity holdings
&

Loans

Undivided

expansion of the financial
institution has paralleled the sub¬
stantial growth of the garment

industry.
In the

"
past six years, the Bank

tripled

nearly

its

deposits

80,106,170
1,242,892

Mar. 12/59

pro¬

gram for the main office included

re-designed and re-located main

entrance

stainless

steel

glass, and erection of

and

new

Total

$77,891,048 $82,775,745

resources

74,178,673

69,282,752

Deposits

16,430,272

18,354,996

holdings

13,458,272

14,776,477

and discts.—

39,383,704

40,731,849

1,196,745

1,185,647

banks
U.

—

Govt,

rity
Loans

profits—

TRUST

UNDERWRITERS

NEW YORK

COMPANY,

Total

resources-

$42,369,715 $44,379,497

Deposits

37,933,539

40,494,071

7,057,610

6,024,865

20,802,079

22,358,940

10,962,838

13,346,935

1,651,599

1,651,072

due from

Cash and
banks

Govt,

Cash
•

Undivided

profits—
# :■

Govt,

curity
Loans

1,908,718,770 2,100,874,863

se¬

holdg's 1,461,598,390 1,505,876,335

trndivid.

discts. 2,613,837,814

profits

3,807,259,870

73,621,249

67,783,465

❖

GUARANTY

TRUST

OF NEW

COMPANY

YORK

Mar. 31/59

Dec. 31/58
$

Total

resources.

Deposits
Cash

and

NATIONAL BANK

TRUST COMPANY, NEW YORK
Mar. 31/59

J
Total

banks
U.

—-

and due

Cash

from
U.

banks—

Govt,

curity

rity
Loans

Dec. 31/58
'•••./*' . Jj
" ».

Loans

Undivld.

.942,-687,455

profits

101,949,777

HANOVER

98,876,623

BANK,
Mar.

NEW

12/59

Total resources.

Deposits
Cash

and

from

holdings

45,939,529

43,286,041

79,495,870

77,351,667

1,800,288

1,766,088

profits—

Frederick

Hainfeld, Jr., Presi¬
announced
that
a
new

dent,

branch

State

the

Long

Banking

Island

Trust

Federal

Department

Board

Governors

Reserve

and
the

It will

System.

foe located at 1501 Franklin Ave¬
at

nue

Garden

the Corner

15th

Street,

City.
s|s

Wyman

Loans

Undivld.

Pasco,

Vice-Presi¬

discts.

profits

438,806^91
898,459.-705

MORGAN

32,014,721

Totar Resources— 915,236,372 982,560,034
"Deposits

794,121,779 857,868,671

Cash, and due from
banks
6.

Govt,

„

—.

229,751,834 242,685,323
secu¬

rity holdings*

223,708,134 235,000,€49

Loans and discts— 345,767,773 391,219,811

Undivided profits:.

19,209,831

18,050,836

has been named
Norristown

•-

"•

member of the

business

solidation

according

nouncement

Melvin

Dec. 31/58

Deposits
and

ooo.

rity

and

Bank

Dagsboro,

the

Bank

for

of
each

the

State

STAMFORD, CONN.
Mar. 31/59
■

$
resources—

Deposits
&

Bunting,

Dagsboro.
Harry W.
President of the First
will

President
J.

the

Raymond

President
come

Vice-

Farmers

Bank.

Baker,

now

Dagsboro

a Vicewill be¬

and

Govt,

14,746,963

13,848,364

discounts

38,138,296
78,293,723
1,479,300

36,701,344
69,058,834
1,342,106

Stockholders of both the Union

County Trust Co,, Elizabeth, N. J„
and Citizens Trust Co., Summit,
N. J., approved plans for a
merger.
Approval had previously
been
given by State and Federal bank¬

ing authorities.
❖

Special meetings of stockhold¬

65,176,591

56,144,675

3,228,379

3,433,813
if

the

for

Plans

Bank

■

merger of First
Trust Co., San

Calif.,

California

and

Bank of Los Angeles, Calif;, were

off

put

Firstamerica. Corp.

consolidation.

the

Farmers

Bank.

The present directors of the
National will constitute the

First
Ad¬

State

Commissioner

Bank

and

other

supervisory authorities be¬
becoming effective.

fore

SOCIETY

NATIONAL

Total

Cash

and due

rity

Mar. 31/59

Dec. 31/58

from

38,607,609

—

Govt,

34,861,588

secu¬

$32

per

shareholders

are

to be offered
the Bank of

95,618,952
95,797,589
Loans and discts
209,856,873 204,871,261
Undivided profits—
1,551,648
1,326,182

111.

Vail

President
announced

April 8.

Hart said

Mr.

appointment

officers

49-year

and

the

veteran

two

retirement

have

been

new

an¬

by William A. McDon¬
Chairman of the Board of

St. Louis, Mo.

'Co.. Inc. at. a price of
yieldA, approximately

Read

4.92% to maturity.
A semi-annual

sinking fund be¬

ginning Oct. 1, 1961 will -retire
approximately 95% of the bonds
prior to maturity. For a period
of five years the bonds are not

are

interest cost

of less than 4.915%

company

otherwise

redeemable

option of the company at any
at
prices
scaling
from

time

104.38% downward to par.
*

Proceeds from the sale of these

securities will complete financing

the

offer

will be

pansion

company's

the

oi^

gas

transmission system. The program
also provides for

17,

additions to the
the basis of one new share for
petroleum products transportation
each eight shares held. Rights will
system.
•
expire July 10. As usual, foe said,
Gas
system additions planned
the offer is going only to those for
1959 include construction of
.pipeline loops on existing pipe¬
lines, additional compression and
new pipelines needed to carry out
of." This is due to the fact that
development
of
the
company's
the shares will not be registered
winter
service
program
started
in the United
States, Mr. Hart late in 1958; completion of facili¬
United" States

any

territory

said.

receive
may

stated

America

possession there¬

that

shareholders

transferable

rights which

be sold by them.

ties

needed

increase daily de¬

livery capacity of the system by
100 milion cubic feet, construction
of

additional

miscellaneous

Enlargement of the bank's capi¬
tal structure is being undertaken

and

in view of the substantial increase

other

formation

owned

nounced

First National Bank in

yes¬

the close of business April

London
$

The

1979, was offered

made to shareholders of record at

two years ago, and because of

Chicago,
Du

due

terday (April 8) by a group of
underwriters headed by Dillon,

April 7. The

Bank

series

first

4%%

bonds,

Montreal, Canada, G.
required in -connection with the
President, announced
company's construction programs
new issue will in¬ scheduled
during 1959 which are
crease the bank's paid-up capital
estimated to total approximately
to the highest figure in Canadian
$63,000,000. The largest portion Of
banking history, he said.
the money will be used for ex¬
on

in total assets since

pipeline

Montreal,

Directors of Merchandise National

Texas

Corp.

tit

Vernon R. Loucks, an attorney,
has been elected to the Board of

Kenneth

$45,000,000

Arnold Hart,

to whom the offer is not made will

holdings

Transmission

mortgage

the

Rights

the

363,924,996 352,917,001

—

issue

Eastern

"whose recorded address, is not in

BANK

401,112,060 391,911,461

resources

but

Bunting will become Assistant

•

the

Cashiers

Offers Texas Eastern

pending a decision in the justice
refundable at
Department
anti-trust ' suit
to
block

and
:

Dillon, Read Group

99 V2 %

to subscribe for 675,000
additional shares of capital stock

nell,
$

Cordrey McGee, Paul C. Williams and Norris

secu¬

rity holdings
&

125,123,483

42,634,355

38,640,785:

discts.—

profits::

Assistant Vice-President

Farmers

•'

•».

holdings-—*.
and

•

secu¬

National

from

banks
U.

148,762,416 137,104,603
136,336,550

due

rity
Loans

Undivided

l6,540,742.

23,259,552

—

Govt,

Nicaragua

Venezuela.

128,693,592

123,694,255 112,112,382

———.

banks
U.

the

ancl due from

Francisco,

banks

Cash

Bank

Deposits

Sep. 30/58

Deposits

open

Transmission Bonds

June 23/58

138,704,583

branches
are
shortly
in

and
to

Guatemala,

dor,

;

Western

become

NATIONAL BANK,
LAKE CITY/ UTAH

resources:

capital stock of the First National
of

and

FIRST

the

Delaware

London

Kingston/ Jamaica and Port-ofSpain, Trinidad. The new bank
currently in process of taking
Over 14 existing BOLSA branches
in Colombia, Ecuador, El Salva¬

The

Executive Qf-.

Mar. 12/59

agreement of merger has been

holdings

THE FAIRFIELD COUNTY TRUST CO.

directors

Chief

SALT

signed by the board of directors*
of both institutions, providing for
the exchange of 5% shares of the

41,063,176

*r-

under

institutions.;

two

Bank

and

ZIONS

announced

was

the

Farmers

Nassau,

scheduled

the

National

Del.,

charter

and

name

of
State

First

Delaware

last

Montreal is owned and controlled

tive March 26.

merger
of
the

Bank

The '

ficer; Lewis H. Bond, President;
Joe A. Clarke,
Executive. Vicer
President; and W. H. Peterson,
Executive Vice-President, ."effec¬

proposed

April

'/■

Bank' of Montreal.

if '

board

mittee

value

par

CLEVELAND, OHIO

Con¬

Worth National Bank, Fort
Worth, Texas, announces the elecDoylestown, * tion
of
James
E.
-McKtnney,

$5.)

secu¬

82,565,711
84,487,062
Loans and discts
162,544,646 163,559 955
Undivided profits—
3,285,297
3,198,238

Carl,
The

standing—70,000 shares,

46,499,467

Govt,

The

23.

$1,500,000 and surplus of $1',500,-1 in

an¬

$250,000 to $350,000
by the sale of new stock, effective
March 23. (Number of shares out¬

due from

banks
U.

effected under the

Penn., increased its common capi-'
Chairman of the Executive Com-

Farmers

formation

its

Doylestown National Bank

Trust Company,

serv¬

Latin

and

He :is
succeeded
as
Deputy
have' - Chairman by Arthur C. Jensen,
of the" close Chairman of the Board of : the

Fort

since

America
year.

charter and title of The American

President of the Bank.

and

bank

new

$112*500,:

March

was

of the

Caribbean

the

ing

Executive National Bank & Trust Company jointly by the Bank of Montreal
Montgomery
County of Mobile, with capital tftock of j and B0LSA.
Its head office is

Pa.,

town,

Chairman

Regional

Board,

Corporation,

per¬

315,709,813 310,399,705
274,825,618 276,308,131

«p

National

Mar. 12/59

YORK
Dec. 31/58

Currency for

Undivided profits—

COMPANY

the

resources

Loans

Tire

merged, effective

Jr/, of

Garthwaite,
&

visory Committee of the Farmers
mission to establish a branch of¬
Bank of Dagsboro with the same
fice in Greendale.
It would be
authority and power
to
make
the 15th office of the Worcester
loans as in the past. Special meet¬
County National Bank and the
ings of stockholders of both banks
sixth in the City of Worcester.
are
being called for April 30 to
❖
#
*
approve the merger and it must
RHODE ISLAND HOSPITAL TRUST
also receive the approval of the
COMPANY, PROVIDENCE, R. I.

Cash

Mar. 31/59

•'

troller

Total

493,034,368

INCORPORATED, NEW

County

Bank, Worcester, Mass., announced
that it has applied to the Comp¬

Dec. 31/58
$

395,410,603
856,885,700
32,329,850

Worcester

1,800,676,374 1,957,711,956
1,506,289,873 1,713,003,349

426,309,600

Rubber

Lee

the

stock of $1,-

common

stock

mon

;

Total

YORK

se-

hold'gs

■

joined Mellon Bank
of the, Mell-' of $200,000, and First Commercial
Mel¬ Bank, Chickasaw, Ala., "with com¬

Bank.

Farmers

due

banks—
Govt,

curity

lon

35,294,445

32,477,129

secu¬

Cash

THE

701,681,840

se¬

when most

140,663,635 143,765,030

and discts.—

Undivided

Total

hold'gs474,821,590
568.778,718
discts. 1,531,632,778
1,664,878,218

Motto

1949

from

—

Govt,

•.

160,984,943 159,130,351

resources

Deposits

3,225,884,463 3,174,581,735
2,860,302,490 2,638,018,353

due

increased

000,000, Central Bank of Mobile,
Mobile, Ala., with commoh" stock

tal stock from

STERLING

THE

❖

due

banks__

The

Loans and discts.—

Dec. 31/58
$

7,030,685,657 7,386,096,807

and

from

will

$6,750,000, on the basis of $10 par
value
shares,
bringing paid-up
capital to $60,750,000. At the same
time, Ihe rest account will be in¬
/, creased
$14,850,000 to a total of
$137,850,000.
if
if "■ ;
* V
v"..',
* :•
■

bank banks became part of

secu¬

holdings

rity

Dec. 31/58

MANHATTAN BANK,

Deposits

•

account

paid-up
comple¬

issue, the capital

new

Mr.

Bank and Trust Company, Norris¬

Mar. 31/59

NEW YORK

Total resources* 7,947,306,039
8,329,981.739

Steger

•

.under
pension plan, had-been

Denton,'Vice-Chairman of the Ala., with

Albert

ynder the personal supervision of dent and Director of the Emerson
Adolph Lancken Muller, President. National Bank, Warrensburg,
N. Y., died April 2 at the age
*
if
of 68.
THE CHASE

secu¬

t]t

by Halsey, McCormack
Helmer, Inc., bank architects,

Mar. 31/59

of the

tion

formerly Presi¬
Director
of West
Blake is a Director

executed
and

Clifford

Chum¬

with First National and its prede¬

was

Cash and due from

ex¬

terior facade of polished granite.
The modernization project was

Mr.

cessor

Allen

Mr.

Sept. 24/58

from $50 million to
Company, Garden City, N. Y„ has
more than $146 million.
been approved by the New York
The
alteration

been

'Steger, who retired

the bank's

George

and

has

organizations since 1910.Toeniskoetter, who has been,
Sir George Bolton, K. C. M. G.,
in the employ of First Nationaldent
and
a
has been appointed Chairman of
Hudson. Mr.
since 1930, has been a .-member
the Bank of London and Montreal:
of
of the Harrison bank.
the credit
department since; Limited,
succeeding the late Gor¬
H
if ■
^
1935.
:
t- don R. Ball, it was announced by
Mr. Chumchal began his service
Frank R. Bbttrill, General Man¬
IJoy E. Motto has been ap-'
with First National in 1922;
5 %%
pointed auditor of Mellon National
ager of the new bank.
f
-f
* -1
' • y
'
Bank and Trust Company, Pitts¬
Sir George is Chairman of the
The American National Bank & Bank"of London and Soiith Amer¬
burgh, Pa. according to an an¬
nouncement on April 6 by Frank Trust Company of Mobile, Mobile, ica Limited, and has been. Deputy

YORK

NEW

rose

extensive

will also

department.

succeeds

Mr.

Bank.

resources

from $57 million held in ,1952 to
current assets of more than $165
million.
In
the
same
.period

National,

tax-paid inner reserves to its rest
account, . which
now stands
at

Manager of the bank's safe

tos jaosition.

Executive Vice-President of

Mr.

COMPANY,

TRUST

COLONIAL

the

The

Chumchal

from

month transferred $3,000,000

the

Govt,

York's

nation's

has

due from

banks
U.

asso¬

garment trade,
largest
and
the
fourth-ranking industry.

178,185,299
159,909,118 164,534,605

„_——

and

Cash

Serving New York's diversified

Dec. 31/58

chal

Deposits

according to Mr. Leicht-

man.

TRUST CO.

31/59

174,538,208

Resources—

em¬

ployees. A total of 25 officers and
employees have been with the
main office since its opening 30

Blake.

Mar.

Total

institution staff has

the

increased

First

86,956,469
2,567,057

NEW YORK
;

decades

48,706,546

FEDERATION BANK AND

elected

were

Fred W. Allen, who

88,379,032
2,930,434
*

directors

new

the First National board. They

47,751,135

Undivided

three

Reflecting

deposit

64,402,331

the

form

named

45,853,445
secu¬

rity holdings
Loans

Oliver

rency.
Two

Assistant Manager of that depart-" $123,000.0300, in relation to
ment. •
■
' ' :
' •/' - v>r"
capital of $54,000,000, On'

April 3, subject to final approval
of the
Comptroller of the Cur¬

Toeniskoetter

credit

department
was
promoted to Assistant Cashier and

City, approved proposals to con¬
the two banks effective

are:

banks
U.

198,835,989

181,978,825
due from

bank's

Jersey

Bank

National

solidate

206,274,930 223,034,133

resources-

Deposits
Cash and

Clarence

National

Hudson

West

Harrison, N. J., and The

First

1959

Thursday, April 9,

St. Louis,

the

and

new

Bank

the

America

serves

"provides

Latin

an avenue

said

supply lines and

additions.

Limited

—

SAN
win

nected

FRANCISCO, Calif
Parker

with

Co.,

for expansion

members

the

area," he
;
bank

last

(Special to The Financial Chronicle)

America and

in the whole Caribbean

Hart

minor

loops
pipe¬

With Brush, Slocumb

Montreal, Limited—
jointly by the Bank of

added.
Mr.

lines and various

and

South

on present

the last issue

Montreal and the Bank of London

which

compression

Inc.,

Pacific
Mr.

Coast

Parker

New

Stock

was

Ed¬

con¬

51ocumb

California

the

—

become

Brush,

465
of

has

Street,

York

and

Exchanges.
formerly with

Walston & Co., Inc.

Number 5836

Volume 189

...

The Commercial and Financial Chronicle

(1659)

Continued

from first

This analysis points to
conclusion: if we

page

faster

grow

Accelerating the Pace of
Advance in Onr Economy
and the end result will be

and prosperity of
are
capable, we must
addiction to the nar¬

avoid

any

inflation.

cotic of

Successful

the

see

rather

Postwar

10%

for

this

conclusion,

let's

fairs

2%?

Doubts Exceeding 4% Growth

Rate

The

is that our economy
rigged as to sail along a 4%
answer

ord. Our economy

growth trend. Our tax system, our
monetary arrangements, our attitudes towards consumption vis-avis saving, our acceptance of such
drags on. our growth as tariffs and
farm and other subsidies, give us
the sort of an economy that could

has always been
a growth economy. With the sole
exception of the great depression
1930's.

goods

dollars of

total

our

production

services,

and

measured

constant

purchasing
power has moved ahead along an
upward growth trend of 3-4% per
annum.
The path of growth has

produce a 4% growth rate.Parenthetically, it should
that

clear

not beert smooth and even—it has

growth

be
is

rate

of: business

achieved in the four decades befere 1930. Finally, a 4% growth

ing the impact of recessions on the
economy.

should

understood

arrange

to support a

This

by waving

af¬

higher rate of
be

done

rate would enable

that

to raise pri-

growth in terms of a Vvate living Standards substantially
rising total production of goods in the period ahead, and support
and services is not the be-all and
increased
expenditures
for
deeconomic

Have

Growth

Rate

can,

ment,
saving and investment, and initia¬

enterprise. The listing of

such steps, which includes
of

tax

series

reforms, is too long to
juncture. All I can

into at tnis

ment that

considered

judg¬

could accelerate

our

rate of economic

advance, and do
it without
inflation, if we adopted
proper policies.
I

aware

views

that, in this respect,

differ from

those

public

with

applies

services

and

must -.tense,* schools,

society.: We

our

concerned

It is being

argued by some that creeping in¬
flation is the price that must be

paid for growth, and that efforts
to prevent such inflation will slow

realize

are

the major

that

elements

make

growth,

for

ultimate

objective — which; Why have such nations as the
may be defined as providing max- "U. .S.,' Canada, Japan,
Germany,
imum
opportunities for intiivid-the
United Kingdom or Brazil
our

u'als

realize their full

Economic

requisite

Outlook V

growth
the

pre-

attainment- of

these ends. Thus, our current position
in 'relation - to
the growth
w

trend
cern.

is, a source of genuine conWe are still 5-6% below this

tfend

despite

....

quires a social
mosphere that
vast

the'

and
can

prescription

composed

of varying dosages of
credit, v increased
Federal
spending,
and
large
wage
in¬
creases as the
appropriate cure.
easy

and

this

the

has

been

major factor

rise in the price

short, the recent

record

level.

seems

support the arguments for creep¬

ing inflation.
Paradox

Inflation

and

„

at¬
accommodate
political

changes,, and bring forward
sort of individuals capable of

initiating

and
But,'jibove all"

sustaining growth,

growing economy
must accumulate capital by saving. and investing. And, in fact, a
a

the sharp recovery
that has taken place in, the past" society's vabilityto
accumulate
year." The fact that .we are still capital—in the form of industrial
in the recovery stage of the cur- plant and equipment, schools and
rent business cycle explains why
roads, mines and oil wells—is the
unemployment is still a perplex- measure of its ability to grow. For
i»g problem. We need-to ;g(^^baek? :y^nital; { ean,: be accumulated and
the

level

rate

high' • put to productive use only if the
employment ahdiaMhigh other*. requisites for growth are
utilization "of' lrtdiMrial'' present'.'-"

trend-

of '•

capacity.

;

achieve

-v..--. \

The .relationship

between

in-

.My

outlook'is that

ness

the
or

personal view of The
vve,

busi-

will regain

long-term trend by late 1959
early i960. Moreover, I believe

that

I960, will be,

of, great

year

prosperity. On the general postwar
business
cycle pattern,
another

vestment
the

apd growth is shown by

vexperiehoe

the!.

United

States since 1899. Total production
in constant dollars has multiplied

10.times in this period, an average
annual

growth

growth has

This

not been

result of

moderate recession

might develop working harder or longer—to the
sometime fn 1961. But we have it
contrary,, average hours .worked
within our ability to
achieve a per week have declined over the
long-term growth
of
4%
p e r period. Despite the increase in our
annum with no more than periodic
population, man-hours worked
...

moderate recessions..

have

•

risen

slower

rate

than

There

is,-however, a concern in output. What has happened is that
that we are hot we have managed to produce more
growing as fast as we could and t°r each man-hour of work. This
should, and that an ovefzealous has been accomplished primarily
certain

the

character of their investment
plans, has been that we would

not

experience

significant

of inflation.

gree
was

true, it

the

rise

the

per

long

this

possible to hold

was

the

price level within

annum

been Termed
But

rate

that

has

creeping inflation.
and

laying their plans

people-

tion of

long-term inflation. Once
enough people begin to rearrange
their

affairs

this

manner

will become

increasingly difficult,
probably impossible, to keep
the creep in prices from
becoming
a
gallop.
If investment policies,
and

interest rates, wages and salaries
and the like should become
fully

adjusted to a 2-3% per annum
price level increase, then a fur¬
ther inflationary dose would be
required to provide a continued
shot, in the economy's

Thus,
the definition of
"creeping infla¬
tion"

would

4-6%,

not

arm.

2-3%

accommodate

but

this

de¬

gree of

inflation would require

steady

easing

credit, and a
growth in the money supply that
would

rise

accommodate

real

not

production

only the
but

also

procedure

months

ahead

might

growth

than

well

would

the

result

by providing a growing amount ol from a set of policies designed to
machinery and equipment to sup- promote long-term growth and
growth. The advocates of plement human effort. Thus the stable prices. The danger is that
more
government spending" and amount of capital in use has- in- this short-term impetus to
growth
more
government
intervention creased in general harmony with might have to be bought at great
inflation

.is

responsible

for

our

play fast and loose with the sta-

the growth in output, except dur-

cost in terms of

tistics

the depressed
World War II.

pects.

They

in
say

because
annum

1958.
use

GXP

growth
showed

case.

has slowed
a

1.3%

per

1953

and

increase between

That's

inexcusably

bad

was a peak
in the business cycle where-

1953

viously,
the

our

their

of statistics—1953

year
as

presenting

was

you

peak

bottom

recession year.

don't
the

measure

boom

of- the recession* in

mining growth.

1930's

'nS

Experience
also

shows

the

world

the

rate

eco-

nomic growth depends on the rate
of

investment

achieve.

nation

Nations

manages

with

high
Ob- rate of investment have a high
froin. rate of growth, and, conversely, a
a

the

low

rate

deter- .dated
-

' in

with

GNP.

investment

asso-

low rate of increase

longer-term

pros¬

A general acceptance of the

:creeping

around

that

and

inflation

idea, plus the
relaxation of
monetary and fiscal
responsibility that is implied,

that

only if

infla¬

Monetary

the effective money
the growth in

supply in line

tion,

while

keeping

real

produc¬

the

increase

in average wages in line with the
advance
in
the

management and

re¬

the

w>'»ge-price front.
take
some
• time
to
these
objectives.
It
is

may

achieve

true, as some economists have
phasized, that our economy
demonstrated

wage-price
to

wage-price

spiral

has

occurred

it.

Such

the

past—they

nationwide
headed
by
Cor¬

White, Weld & Co.
priced at $100 per

was

share is convertible into 2.4 shares

stock through

common

1964

April 1,

into

thereafter

and

2.25

shares through April 1, 1969.
Of the proceeds from the sale,

$20,000,000

will be used by the
to retire its outstanding

short-term

notes

issued

under

revolving credit agreements, pro¬
ceeds

from

which

used

were

the company's expansion program.

that the balance of

proceeds will also be applied to
the expansion of the company's
properties.
'
\
The

new

second

preferred stock

is redeemable at $104.75 per share

continued

prior to April 1, 1964 and there¬
after at prices decreasing to $100

will

per

years

that

works

take
the

Tennessee

Company
extending

—

after

April

lr„

1979.

against

wage in¬
greater than the

are

group
Webster Securities

natural

and

operates

transmission

gas

areas

Transmission

Gas

owns

from

Texas

gas.

and

system
producing

Louisiana

economy can pay out of increased

the

efficiency lead to higher prices,

country. At Jan. 1,, 1950 the sys¬
tem included 10,195 miles of pipe
lines with
a
designed delivery
capacity of 1,980,000- MCF of gas
per day and approximately 2,385,-

lower sales

ployment.
of

sound

and

increased

A resolute

unem¬

application

anti-inflationary meas¬
in time, bring this lesson

ures can,

home to the general
public.
In
summary,
I
believe

effort should be devoted to
attaining growth and stable prices.

Consequently, it is

judgment

that

creeping inflation can
be
averted, and that efforts to that

end

will contribute to

and

prosperity of the nation.

the growth
To

succumb to the narcotic of
creep¬
ing inflation would be to jeopar¬

dize

our

great

and

prosperity

ahead./.

MCF

drawal

yesterday

(April 8) offered in units of 100,000

stock

class

common

and

10,000 stock purchase
warrants, of Erdman, Smock, Hos¬

ley & Reed, Inc. Each unit, con¬
sisting of 10 shares of class A
stock and

common

stock pur¬

one

chase

warrant, is priced at $30.
The offering was completed.
Net proceeds from the
will be used by the

financing

company'for

the

purchase

essential

elec¬

tronic equipment. The balance of
the
proceeds will
be
used
for

working capital, to

its own
receivables, and to factor

accounts

the

accounts

affiliates.

carry

receivables

its

one

1962, in the

share
or

purchase

class

common

and

facilities

stock at $5 per

and

management

highways,
structures

the

design of new
pipelines
and
other

for

Upon completion of the current

outstanding

the

company

capitaliza¬

will consist

of 150,000 shares of common

125,000 shares of class A
and

10,000
The

increase

The* company nnd its subsidi¬
also
are
engaged in - the
of
exploring for, pro¬

processing,

refining

and

marketing petroleum and petro¬
leum products.
In the year ended Dec.
31, 1958,
Tennessee
Gas
Transmission's
total

operating revenues totaled
$402,784,000 and net income was

$46,424,000, compared with $374,003,000 and $40,411,000,- respec¬
tively, in

1957.

High Point Chemical
Offering Completed
Pearson, Murphy & Co. Inc., an¬
that its offering of 299,985
shares of common stock of High
Point Chemical Co. Inc. at $1 per
nounces

share has been all sold.
Proceeds from the sale of these
shares will be used by the com¬

for" the purchase of equip¬
for
its
manufacturing
processes and for working capitaL
pany

Joins Wm. R. Staats
(Special to The Financial Chronicle)

LOS

stock

stock;

common

ANGELES, Calif. —Fred¬

erick R. Van Cleve is

long term debt securities.

has

Co.,

640 South Spring Street, members
of the
New York
and Pacific

Cbast Stock Exchanges.

Witherspoon Adds
(Special' toTaE Financial Chronicle)

LOS
P.

ANGELES, Calif.—Milton

Stiker

staff

has

been

added

the

Witherspoon & Co., Inc.,

215 West Seventh Street.

Three With Keller Bros.
(Special to The Financial Chronicle)'

BOSTON, Mass. — Saul Cohen,
Roger S. Davis and- Francis J.

purchase Leonard

company

affili¬

now

ated with William R. Staats &

con¬

government agen¬
cies and private enterprises.

would

aries

sultation services to organizations

additional

operate

which

daily system delivery capacity to
about 2,617,000
MCF and over
3,000,000- MCF on peak days.
J

Inc., a Virginia corporation, * was
incorporated on June 10, 1952, and
has its principal office in Wash¬
ington, D. C. The company fur¬
nishes
photogrammetric and

engaged

peak days by with¬
from underground

gas
,

struct

A' common

Erdman, Smock, Hosley & Reed,

incidental

the

ment

Each stocck purchase warrant
entitles the holder to exercise the
warrant between June 1, 1960 and
June

The company has an application
pending before the Federal Power
Commission for authority to con¬

ducing,

Co.

sections

business

Erdman, Smock, Hosley
& Reed, Offer
Completed
&

storage.

chancesef^r, achieving

growth

the decades

northeastern

000
that

every

warrants.

save

Stone

publicly

was

April 7 by

mediately concerned

booms

than

value)

par

interests, not only of the
community but also of those im¬
that

stock

underwriting

em¬

the best

creases

con¬

preferred

recent

towards
spiral.

demonstrate

stock,

spend

($100
offered

It is expected

straint

shares of

cumulative

second

proper debt

money

vertible

company

form

rush

4.72%

pany

economy's effi¬
ciency.
The key ingredients of
such an approach
during a period
of rising business are
tight money,
a
surplus in the Federal budget,

tion

issue of 440,000

new

share and accrued dividends. Each

Theory

with

financing,

Tennessee Gas Transmission Com¬

poration and

achieve price stability we
keep the annual increase in

must

markets, real estate and
commodity markets, or, eventu¬
ally, in consumer markets in the

stock

Gas Transmission Pfd.

The stock

rather

adopt

we
contain

will

pressures.

would leave the
economy vulner¬
able to an inflationary boom —

-have

interrupted by

share.

Such

give

to¬

sustained

economy

growth,

Offers

stock

the rise in prices.

quarters

work

objective of price sta¬
our

Simmons

are

the assump¬

de¬

preoccupation with the dangers of

lack

policies

tionary

ad¬

than moderate
recessions,

time

eapabili-;achieved substantial growth in the

....

Future

this diagnosis offer

plainer language, we need past century while many other naGrowth
to develop a general understandtions have been standing still or
Yet I submit that the reason we
ing of the needs for better ectuca-1 slipping backwards?
.have gotten away with inflation
tion, purer air, improved living
'
in
the past is that it has been
conditions in our cities,: and in-,
wh» Do Somc Natlons Orow?
creased emphasis on the cultural
This is not an easy question to unexpected. The general assump¬
tion
underlying people's decisions
values of our civilization.. *
answer. Economic growth is a most
as to
spending or saving, or as to
complicated phenomenon — it re¬
and

bility.

tendency

ties. In

Present

the

portant to understand

goods

wards

but

Bankers Offer Tenn.

little

necessary
worked out.

were

alternative

and

the

judgment, the nation has

growth and breed chronic un¬
employment.
Those ; who
make

our

the

various

In my

number of economists.

We have had
roads and, other
creeping inflation
in recent years
quality of /Public items at the same time,
during a period of
what we produce as well as with
substantial
In - considering arguments that
long-term growth in
its
quantity. We must work to'twe should accelerate the pace of ; the economy. Wages have risen
elevate the scale of values the advance of our economy, it is im» more rapidly than productivity,

end-all

justments

provide greater encourage¬
or less discouragement,
to

tive and

while

will be possible

in my opinion, be done
forward looking program to
avoid both inflation and deflation
by

unemployment

growth

economic

wand.

high

aver¬

our

cannot

have always led to a collapse fol¬
lowed by a prolonged period of

How

the
ups
and nothing to look down one's nose
cycles. How- -at. It implies a doubling of naever, our performance so far motional -output
every 18 years. It
the postwar period shows that we means a faster rate of growth—by
have been successful in moderat-. one-fifth Or more — than that
marked

been

downs

must

investment.

turn to an examination of the rec-

of the

been

wish to better the

the 3% long-term

age—we

and to

Growth

reasons

dogmatic

period,

has

growth

which

have

collapse. If we are to achieve the
great

want

4% per annum rate of the postwar

Now, what of the future? As I
said, I believe our economy
the potential to maintain a
general growth rate of 4% per
annum. Why 4%? Why not 5%, or

a severe

than

growing—if

signifi¬

cant

with

have

Keller

become

Brothers

affiliated!

Securities

Co., Inc., Zero Court Street.

The Commercial and Financial Chronicle

(1660)

Continued from

for
Economic
Education, Inc.,
Irvington-on-Hudson, N. Y., 50£.

page

Hints

Yeck—Y.

rulie, Germany. Its factory in
Elizabethport, N. J. is being com¬
pletely modernized and the manu¬
facture of sewing machines there
,

Is being nearly entirely automated,
putting Singer this year into a
position to regain lost territory.
Singer's sales in Italy alone equal
that of its competitor Necchi and
its modern German factory com¬

With

earnings

West

How to Get Rich Buying

dividends, the parent company
gets royalties on each
machine made by the factories of

Co.

shares,

common

profitable.

factories

New

have been opened in Latin Amer¬
ica because of import restrictions
from hard currency countries and

advantageously
In prac¬
tically all parts of the Free World,
Singer is being sold with the
exception of India, where Mahatma
to

compete

International
struction

E. C.

had
and

the

useful

few

vented.

used

The

things

ever

practically excluded

1959

Atomic Industrial

—

Forum, 3 East 54th Street, New
York 22,

N. Y.

Business

Basic

•.

and

Howell

—

Company,
York

New

The

Ronald

Press

15 East 26th Street,
10, N. Y.
(cloth),

markets—Foundation

for

•

(cloth), $10.
figures, at first glance,
very
poorly. They Communist Economic Threat
©mount to $2.41 only but because
Department of State Publication
of the unusual accounting methods
6777—Superintendent of Docu¬
would have amounted to $2.87.
ments, V. S. Government Print¬
*JLTie current year should show the
ing Office, Washington 25, D. C.
first fruit of the management's
(paper), 15c.
The 1958

compares

lists

the

in Australia:

Guide

Companies — Booklet pre¬
pared for companies contemplat¬
establishment
National

Australia

Bank

Aus¬

tralasia

alties— Carl
Walter S.
S t

r e c

ings. To this must be added that
has

company

diversification

embarked on
operations

its

Corporation

Finance—Richard

Osborn—Richards

Osborn—

Harper & Brothers, 49 East 33rd

Webber

Year

Contains

quoted

the

Exchange and As¬

Stock
broker

Exchanges; also
members of

the

Wallace

Sachs, Jr.— Walter S.
Inc., 1518 Walnut

Philadelphia

Research,

Pa.

Stock

Exchange

the

New

York

Business,

Public Expenditures

U. S. Income and Output: A Sup¬

Stock

plement to the Survey of Cur¬
rent Business—Study introduc¬
ing an enlarged set of national

Exchange: Its Purposes, Advan¬
tages
a n d
Responsibilities —

income statistics and

compre¬

hensive account of postwar eco¬
nomic developmens — Office of

Business

Economics, U. S. De¬
partment of Commerce—Super¬
intendent

of Documents, Gov¬
Printing Office, Wash¬
ington 25, D. C.—$1.50.
ernment

—

the

owns

Diehl

Endless

Frontiers:

McGraw

electric

game

©nd

motors

vacuum

through

its

outlets.

for

its

cleaners

machines

distributed

thousands

Many of

Sears,

retail

Roebuck

Craftsman electric hand tools

are

made

by Diehl. Recently Singer
Haller,
Raymond
&
Brown, a research firm with close
Washington (Defense Department*
Connections. Through these two
affiliates, Singer intends to in¬
crease
its military business, in¬
purchased

frared development and
research,
from $6 million to $30-40 million

Hill

The

Story

Roger
McGraw-Hill

—

of
BurlinBook

Company, Inc., 330 West 42nd
Street, New York, N. Y. (cloth).
Estimated

Work

Injuries, 1958—
of Labor,
Bureau of Labor Statistics, 341
Ninth
Avenue, New York 1,
N. Y. (on request).
U.

Department

Federal
and

Anti-Trust

comments—S.

Oppenheim

Fiber

Chesterfield

West

Facts, 1959

Military Biography of Generalis¬
simo Rafael L. Trujillo Molina
—Lt. Ernesto Vega y PaganEditorial

Atenas,

Cuidad Tru¬

jillo,
Dominican
(cloth).

Republic

Mutual

Cases

Publishing
Company, St. Paul, Mo., $15.
—

Avenue, New York 22, N. Y.
(paper), $1. (quantity prices on
request).

—

Law:

York

Foreign

Exchange

filiated

not

consolidated

iaries, is pulsing with
is

and

its

af¬

subsid¬

new

life—it

modernizing its manufacturing

facilities

well

its

distributing

izing its stockholder relationship:
for the first time, it will publish
a

semi-annual report this

Summer,

preparing itself for quarterly

ports,
the

requirement for listing

New

York

Stock

re¬
on

Exchange.

Viscose

Pa.

Finnish

New

Economy in 1958—Erkki
Laatto—in the February Month¬
ly Bulletin of the Bank of Fin¬

land, Helsinki, Finland.
Freeman,

April 1959—Containing
"Runaway Spending
Brings Crisis in Local Govern¬
on

ments; Tax Decalogue for the
Welfare State; Human Rights
are
Property Rights;
Money
Talks: Union Coercion and Your
—

Foundation

York

New

45,

(paper), 50c.
Financial

Review

Research Institute
cial

Banks

—

Outlook

The

new

past 12 months, Bank of
un¬

derwriting

Pacific

member firm has branch

Coast

the

Securities,
assets

Selected

for

Groups—U.

member

Tulsa,

the

Joins

National Bank &
of

Pierce, Fenner & Smith Incorpo¬
rated; The First National Bank of
Oregon;
Seattle - First National
Bank; R. W. Pressprich & Co.; The
Philadelphia National Bank; Equi¬
table Securities

Corporation.,

-Bear, Stearns & Co.; Dean Wit¬
ter & Co.; William R. Staats &
Co.; Mercantile Trust Company;
Reynolds & Co.; J. Barth & Co.;

Ladenburg, Thalmann & Co.;
Hornblower & Weeks.

Pitts

CITY, Mo.

now

with

—

Buddy
R.

Bell

Company, 4627 Womall Road.

With Bache & Co.
(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Fred
been added to the staff

Carr has
of

Bache

Co., 445 North Rox-

bury Drive.

Robert Brandt Adds
(Special to The Financial Chronicle)

BEVERLY

HILLS, Calif.—The¬
Grossman; is now affili¬

odore M.
ated

with

Robert

Brandt

Co.,

430 North Camden Drive.

Items

S. Department

Labor, Bureau of Labor Sta¬

—

Joseph

B. St. Germain has become affili¬

with

ated

Hayden,

Co.,

Stone &

Herbert J. Erdman, member of
the New York
Stock
Exchange
and ,senior

Co.,

which

of 58.

Opens Inv. Office
FAIRFIELD, 111. —Mary
Creighton is conducting a
Northeast Third.

busines

from

Ann
secu¬

offices at
.

■

Frank W.

(Special to The Financial Chronicle)

rities

partner of Erman &
he founded in 1932,

passed away March 12 at the age

1387 Main Street.

York

(on request)..:'.

Herbert J. Erdman

Hayden, Stone

(Special to The Financial Chronicle)

tistics, 341 Ninth Avenue, New
1, N. Y.

& Co., Inc.; The First
Corporation; Smith, Bar¬

& Co.; Security-First National
Bank; American Trust Company,
San Francisco; California
Bank,
Los Angeles; Continental Illinois

Exchange, will
confer the privileges of his mem¬
bership on the new firm.
a

1, N. Y. (on request).

Indexes

funds

ney

Inc.
ac¬
the Pacific

Exchange member firm

SPRINGFIELD, Mass.

Department

Blyth
Boston

Stock

Coast

Western

Oslo,

Construction

source

—

Labor, Bureau of Labor Statis¬
tics, 341 Ninth Avenue, New

and

Bank

Hutchinson,
Wichita
Topeka, Kansas, and Tulsa,

quired

Commer¬

for

Alaska—U.

Price

May

America N.T. & S.A. and the

Exchange effective April 1, 1959.

Economic

Norway,
Norway (paper).

York

In the

member

York,

American

Newspaper, etc.

the

National

become

and

Boulevard, Philadelphia
(paper), on request.

articles

firm

has

Oklahoma, and Charles M. Clisbee,

Corporation, 1617 Pennsylvania Norwegian Commercial Banks

itself

Citizens

Clisbee & Company, Inc of

Bank

Reserve

©ales

between

the

Building,

Oklahoma.

rent

—

and

Presentation—

This hundred year old colossus,
with nearly $y2
billion annual

formation

to maturity,
1960-84, inclusive.

KANSAS

eral

in¬

according

Market—Alan R. Holmes—Fed¬

textile

On reoffering, the bonds were
priced to yield from 2% to 3.60%,

Coast Exch. Member

Summary

size publication

data

31/2% coupon and

3.44%.

was

E. R. Bell Co. Adds

EMPORIA, Kansas — Western
Securities, Inc., with a head office

Seurity Program for 1960

annually.

fiber

the net interest cost to the District

(Special to The Financial Chronicle)

New pocketcontaining cur¬

—

issues carried

Western Securities Is

offices

Department of State, Washing¬
ton, D. C.
New

Angeles

841-lor

Trust Company
Chicago; Chemical Corn Ex¬
—Committee for Economic De¬ change Bank; The Northern Trust
]
velopment, 711 Fifth Avenue, Company; Lazard Freres & Co.
New York 22, N. Y., $1.00 per
Drexel & Co.; R. H. Moulton &
Copy
(quantity prices on re- Company; Glore, Forgan & Co.;
C. J. Devine & Co.; Merrill
quest.)
Lynch,

Analysis of statistics relating to
the Exchange for the quarter

School

the Next Decade—Otto Eckstein

—

ended December, 1958—Johan¬
nesburg Stock Exchange, P. O.
Box 1174, Johannesburg, Trans¬
vaal (paper).

Indiana

•—

Bloomington, Ind. (cloth), $6.
Trends in

Johannesburg

Yoder

University, Bureau of Business

Co.,

—

also

The Bank syndicate paid a pre¬
of $90,841 for $12 million

mium

assured

—

Singer

& Co. Incorporated.

gan

office, 111 Broadway, New for civic
improvements and public
6, N. Y.—$35 (2 vols.)
projects required by the State's
Tax Aspects of Real Estate Trans¬
expanding economy.'
actions—Martin Atlas—Bureau
Other major members
of the
of National Affairs, Inc.,
1231 Bank syndicate which bought the
Twenty-fourth Street, N. W., $27 million Los Angeles City
School Bonds include:
Washington 7, D. C., $12.50.

and

Street, New York, N. Y. (cloth).
utilizing its properties more fully.
New York Stock Exchange, 11
Singer owns in Quebec nearly Economy, Liberty, and the State
Wall Street, New York 5, N. Y.
Calvin
B.
Hoover
The
COO,000 acres equal to 715 square
miles of timberland containing 1.3
(paper).
Twentieth
Century
Fund, 41
billion board feet. Together with
East 70th Street, New York 21,
Major Currents in the Brazilian
Perkins-Goodwin
N. Y. (cloth), $5.
Company, the
Economy — Eric F. Lamb — J.
latter having 30%, Singer 70%,
Effect of Corporate Income Tax
Henry
Schroder
Banking
they are building a pulp mill
on
Investment
Corp., 57 Broadway, New York
George TerWhich should enhance the profit¬
15, N. Y. (paper).
borgh — Machinery and Allied
ability of this huge asset. In addi¬
Products Institute, 1200 Eight¬
Metropolis Against Itself—Robert
tion, Singer owns 68,000 acres of
eenth Street, N. W. Washington
C. Wood—Committee for Eco¬
timberland in South Carolina with
6, D. C. (paper), $1.
nomic Development, 711 Fifth
©bout 200 million board feet.

Manufacturing Company, making

Company, Harris Trust and Sav¬
ings Bank, Guaranty Trust Com¬
of New York and J. P. Mor¬

pany

York

(cloth).

Listing

City

National

First

Bank of New York, Bankers Trust

York

—

Ctrenuous efforts to improve earn¬

—

Limited, 6-8
Tokenhouse Yard, London, E. C. 2,
England (copies on request).
Trading Stamp Practice and Pric¬
Investment in Producing Oil Roy¬
ing Policy—Albert Haring and

Sachs

The

group in¬
Manhattan

Administration, Box
Riverdale
Station,
New
York 71, N. Y., $15 per year.

ing

Chase

accounts it managed
Exchange, and members of the
purchased more than $716 million
Associated and provincial 'Stock
California
State
and
Municipal
Exchanges—Thomas Skinner &
Bonds.
The Bank and its under¬
Co. (Publishers) Ltd., Gresham
writing syndicate, through sue-;
House, Old Broad Street, Lon¬ cessful
competitive financing, pro¬
don, E. C. 2, England — New vide an

104,

—The

securities

sociated

Business

Investing

Official

1959

London Stock

International

Serv¬

South

Exchange

data

America

The

million Los Angeles City Junior
College District Bonds. All three

Book —Vol.

—

Bank

cluded

Special report on
and policies—

trends

Africa, 655 Madi¬
Avenue, New York 21, N. Y.

Stock

$27;-

address by South Af¬
Ambassador Wentzel
C.

Africa:

rican

purchased

City High School
Bonds; a premium of $90,$12 million Los Angeles
City School District Bonds and a
premium of $22,339 for the $3

economic

Executive
Quar¬
terly publication of digests of
books and articles on overseas

The

Los

text of

April

District

International

Advancement

Capitalism—John Cham¬

Plessis—Information

International

S.A.

000,000 of Los Angeles City School
Bonds, Election 1958, Series C.

Inc., 120 Alexander Street,
Prlnecton, N. J. (cloth), $5.50.

South

(paper) on request.

An underwriting syndicate man¬
aged by Bank of America, N.T. &

berlain—D. Van Nostrand Com¬
pany,

Economics
J.

Research,
121
West
Street, Chicago 3, 111.

—

Man¬

agement
Adams

ice

Finance

for

$7.50.
Budget and Economic Growth: A
Statement on National Policy—
Committee for Economic Devel¬

opment, 711 Fifth Avenue, New
Singer's stated earnings in 1955
York
22, N. Y.
(paper), 50c
were
$4.03 per share, in 1956
(quantity prices on request).
$4.25, in 1957 $4.02. The 1957 in¬
cludes 87£ non-recurring profit, Budgeting: Principles and Practice
Herman C. Heiser—The Roland
thus operational net amounted to
Press Company,
15 East 26th
$3.15 plus 17£ deferred in that
Street, New York 10. N. Y.
year, bringing the total to $3.32.

the

Department Stores, and Super¬

Roots of

$27 Million Los Angeles
School BonAs Offered

Bank,

ing for Smaller Manufacturers,

Section, Department of
and
Sociology,
Princeton University, Princeton,

Cairncross

New York
Washington
York 3, N. Y

Pros and Cons of Equipment Leas¬

son

Alec

Myer,
Press,

Recon¬

for

"business—Foundation

Text

Law:

Cases—David S. Craig and Rate
A.

in¬

the company.

Industry

ices,

one

—

Directory
of
Products, Equipment and Serv¬

sewing

present Indian Gov¬

has

ernment

the

declared

1958

2, England (paper).

Atomic

machine

Old

114

Review,

Montagu & Co. Ltd.,
Broad Street, London,

Samuel

with Japanese products.

Ghandi

Bullion

Annual

Non-Accountants"

Development—

Bank

and

"Ac¬

Accompany

Square, New
(paper), 50c.

Department of Labor, Bu¬
of
Labor
Statistics, 341
Ninth
Avenue, New York
1,
N. Y. (on request).

owns

but none of
the voting preferred shares. For¬
eign operations of Singer were
twice as large as domestic and
nil

University

reau

controlled by Inter-

Manufacturing

—

David

—

counting for
John
N.

Stocks—

Cobleigh

U. S.

rational Securities Corp., of which

Singer

$3.95.

Scientific, Engineer¬
ing and Other Technical Jobs—

©lso

the companies

McKay,
Inc.,
119
West 40th
Street, New York, N. Y. $2.50.
Increase

receiving

Besides

Ira

Dr.

—

Problems

parent company's home

production.

Street,

uptrend,
these conservative shares yielding
request.
4.7%, backed by a young, vigorous
management,
using
modern Housing Definitions—As They Re¬
late to Programs of the Housing
methods and diversification to in¬
and
Home Finance Agency —
crease
the earning power of its
Superintendent of Documents,
huge assets, are the stock I like
U. S. Government Printing Of¬
best for income and capital gains
fice,
Washington
25,
D.
C.
possibilities.
(paper), 30c.
the

petes
successfully
with
Pfaff.
Singer Ltd., 31% owned by Singer
Manufacturing Co., produced 750,©00 machines in 1957—thus more
than the

First

Stock

the

Harry

Kahn, Jr.—\
Doubleday & Company, Incor¬
porated, 575 Madison Avenue,
New
York
22, N. Y. (cloth),

Publishing, 349
Dayton 2,
Ohio (paper), single copies, 25c
(10c if requested on business
letterhead); quantity prices on

The Security I Like Best

Profit

for

Market

Letters—John D.

Better

Primer

Thursday, April 9, 1959

...

105

Frank

Aigeltinger

Aigeltinger, associ¬
ated with Vickers Brothers, New
York

"J 14th.

City,

passed
,

away

March

Number 5836... The Commercial and Financial Chronicle

Volume 189

(1661)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERIC AN

IRON

Indicated Steel

STEEL

AND

Equivalent to—
ingots and castings

Steel

Week

(net tons)

and condensate

output—dally average

gallons each)
to stills—daily average (bbls.)

output
Kerosene output

Week

(bbls.)
(bbls.)

(bbls.

*93.2

92.0

48.5

April 12

§2,638,000

*2,638,000

2,604,000

1,308,000

7,193,220
118,007,000

7,202,870

28,060,000

28,592,000

Mar. 27

1,802,000

1,902,000

Mar. 27

13,281,000

Mar. 27

6,867,000

14,507,000
7,239,000

Mar. 27

;

(bbls.)

„

Mar. 27

(bbls.) at

Mar. 27

._Mar. 27

CIVIL

212,139,000

6,264,135
7,038,000
25,427,000
2,226,000
11,363,000
6,984,000

207,744,000
19,593,000
81,634,000
54,582,000

18,333,000

77,194,000
55,082,000

216,647,000
17,222,000
75,125,000
55,165,000

AMERICAN RAILROADS:

Revenue freight loaded (number ofcars)_
Mar. 28
■Revenuefreight received from connections (no. of cars)—Mar. 28

7,208,320
3,236,000
27,966,000
2,511,000
15,267,000
7,483,000

8,082,000

212,954,000
17,883,000
76,672,000
55,917,000

Mar. 27

Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at

ENGINEERING

CONSTRUCTION

603,755

603,178
569,701

576,443

575,583

532,273

552,518

510,847

ENGINEERING

—

NEWSx&ECORD:
Total U. S.

construction

Private construction

..Public-construction
State and

...

municipal

...

federal

April 2
April 2
April 2

$338,300,000

April 2

144,500,000

$355,400,000
179,900,000
175,500,000
135,000,000

April 2

72,200,000

40,500,000

7.810,000
373,000

*7,935,000

121,600,000

216,700,000

$523,100,000

$598,495,000

230,000,000

385,189,000

293,100,000
181,600,000
111,500,000

213,306,000

8,235,000
425,000

7.451,000

158,328,000
54,978,000

Bituminous coal and lignite

Mar. 28
Mar. 28

Electric output
FAILURES

AVERAGE

—

386,000

336,000

Mar. 28

100.

—.———-——April 4

INDUSTRIAL)

DUN

—

122

12,618,000

12.709,000

12,945,000

11.326,000

PRICES

(E.

M. J.

284

297

288

6.196c
$66.41

6.196c,

6.196c

5.967c

$66.41

$(36.49

$37.83

$40.50

$41.83

$34.00

■;

352

;

(New

Lead

(St. Louis)

York)

-Aluminum

—

at.

(New York)

MOODY'S BOND

PRICES

April 7
April 7
April 7

U. 6. -Government Bonds

Average corporate

Average corporate
—-

—

Utilities Group

Industrials

Group

TRANSACTIONS

purchases

Other sales

Total
"

sales

Total

10.800c

11.800c

10.500c

11.000c

10.000c

24.700c
102.625c

24.700c

24.000c

102.250c

104.500c

92.625c

85.36

95*62

April 7
April 7

91.91

92.20

92.93

99.52

89.92

90.06

.90.34

95.47

April 7

84.30

84.43

83.91

86.51

88.95

91.19

89.92

97.47

91.91

98.41

."■>

88.13

89.51

89.78

91.48

91.77

„

88.54
v

96.48

3.92

4.43

4.41

4.19

4.15

7
"J

4.28

4.26

4.42

4.41

3.81

2.80

4.40

4.11

#»

4.03
J-

3.62

4.21

3.78

4.39

4.04

4.84

4.83

7
.April 7
April 7

4.55

4.52

4.49

4.33

4.45

4.43

4.42

3.91

4.31

4.29

4.28

3.85

April 7

391.0

390.6

385.7

395.5

Mar. 28

306,512

279,776

324,109

259,355

Mar, 28

318,345

306,218

301,751

268,648

4.87

4.67

Mar. 28

433,180

444,024

423,667

351,889

110.76

109.98

Short

sales

110.79

MEM¬

Total
-

floor—

initiated off the

2,201,040

1.611,960

326,190

305,860

2,500,500

1,904,960

1,316,020

-Mar. 14

3,052,910

3,212,680

2,231,150

1.62l[880

-—-—-Mar. 14

548,370

555,610

466,240

42,500

44,900

Mar. 14

580,510

492,050

355,900

376,270

....——-—Mar. 14

623,010

536,950

416,700

422,100

Mar. 14

purchases

Ghort

sales

940,450

894,279

501,260
128,200
525,620

Mar. 14

206,430

135,130

645,209
101,470

——Mar. 14

974,350

924,700

711,265

Mar. 14

1.180,780

1,059,830

812,735

653,820

Mar. 14

4,509,510

3,252,129
488,460

2,579,460
479,890

4.055,360

4,691,999
808,090
4,001,370

4.856,700

4.309,460

2,972,125
3.460,585

2,217,910
2.697,800

sales

—

Mar. 14

—

Mar. 14

sales

801,340

LOT

DEALERS

SPECIALISTS ON N.
EXCHANGE COMMISSION

AND

Odd-lot

sales

Number
1

-Dollar

by dealers

Afar. 14
Mar. 14

——

Mar.
Mar.
—Mar.
—..Mar.

Customers' short sales
Customers' other sales

-Dollar

•

value

Other sales

EXCHANGE

—

round-lot

1,981,563
6,375

9,755

14
14

1,975,188

Mar. 14
SALES ON THE N. Y. STOCK

SECURITIES

2,117,527

2,700,754

1,207,693

$85,178,715

$52,854,251

Bhortsales
—

—

Silver, New York (per ounce)—
Silver, London (per ounce)—
Sterling Exchange (check)
Tin, New York Straits
Gold (per ounce, U. S. price)
;
Quicksilver (per flask of 76 pounds).
tfAntimony, New York, boxed
Antimony (per pound), bulk Laredo
Antimony (per pound), boxed Laredo
Platinum, refined (per ounce)
1 Cadmium, refined (per pound)

Bismuth

TURE— 1910-1911
All farm

FARMERS
DEPT.

408.0

11,898,000

*11,849,000
*6,732,000
*5,117,000

11,767,000
6,653,000

5,123,000
96.2

*95.8

95.1

158.4

*158.1

144.9

15,737,000
9,039,000

5,114,000

*15,676,000

15,593,000

6,698,000

*8,986,000
*6,690,000

8,906,000
6,687,000

$87.16

$87.38

$80.64

94.87

*94.94

86.46

78.01

*77.81

73.15

39.8

39.9

38.4

40.2

*40.4

38.6

39.4

*39.3

38.1

$2.19

$2.10

2.36

*2.35

2.24

1.98

1.92

v
#

29.617c

24.018c

30.271c

28.726c

20.738c

£248,513
•£247,606

£236,206

£170,137

£235,531

£171,220

11.412c

11.560c

13.000O

Feed,
Food

—

Tobacco

crops

;

—

—~

——

Livestock

—

Dairy products

....

animals

—

—
—

PLANTING

FOR

CROP REPORTING BOARD
IN THOUSANDS—As

Corn, all
All spring wheat

Flaxseed

536~890

562"l40

3~70~310

201,070

Sorghums for

Other

——,—...

grains and hay
grains

12.800©

£69.966

£74.789

£70,775

£74,563

11.000c

11.417C

10.000c

11.500c

11.917c

10.500c

•'

£75.122

£73.681

£63.488

£73.931

£71.981

£63.557

1058—U.

—

76.429d

$2.81540

103.119C

102.729c

94.514©

$35,000

$218,000

$231,692

32.590c

29.000c

29.500C

24.417c

29.500c

$76,727

$57,278

$72,154

$1.45000

$1,55000

$1.45000

$1.45000
$1.45000

$1.75000

$35,000

$224,636

$1.45000

29.000c

$1.55000
$1.55000
_

$2.00000

$26,800

$28,100

$24,700

$26,000

35.250c

74.000c

$2.25

;

243

244

246

218

215

219

264

266

*306

239

238

211

154

152

*145

203

199

*221

225

211

*199

221

218

*225

123

129

204

505

500

265

270

269

259

264

*263

322

328

*321

158

160

197

201

•

475
.

169 *

*241

ACREAGES

March

83,921
13,405
1,273
12,132

—
—

35,998

purposes

88.625c

77.206d

$2.80935

spring

ail

90.444c

79.281d

$2.81271

15:

fresh

Cotton

11.383c

£71,209

INDEX

—

-100—As of Feb.

vegetables,

11.209c

£69.513

AGRICUL¬

products

297,070

770,350
'
1

17,093
3,678
1,603

20,440

74,654

12,343
947

11,396
38,430
16,268
4,014

1,444
21,176

-784,900

657,580

447,470

Early

Spring

—

Summer

Late Summer and Fall

Mar. 14

924,410

903,300

Mar. 14

21,413,570
22,337,980

20,969,810

14,784,410

794,480
11,717,540

Total

21,873,110

15,430,590

12,512,020

Sweelpotatoes

646,180

-X

—

._Mar. 31

119.5

119.3

119.2

119.6

90.9

90.3

98.7

107.3

107.0

107.2

110.5

100.4

98.6

98.9

108.4

127.8

127.6

125.9

156

183

108

1,087

1,136

1,392

1,498

275

272

Tobacco

1,161

1,081

Beans, dry edible
Peas, dry field
Soybeans
I——

1,656

1,644

Peanuts

Hay
Sugar beets

311

227

23,172
1,702
70,499

24,900
1,755
73,033

942

933

"Revised figure. + Average based on the producers' quotation. 2Based on the average
producers' and platers' quotations. §Average of quotation on special shares to
platers. ([Domestic five tons or more but less than carload lot boxed. §§Delivered where
freight from East St. Louis exceeds 0.5c. ***F.o.b. Fort Colburne U. S. duty included.
ttAverage of daily mean and bid and (ask quotation at morning session of London
Metal Exchange.
^Increase all stocks. '
-

of the

((Includes 908,000 barrels of foregin crude runs. §Based on new annual capacity of 147,633,670 tons
as of Jan. 1, 1959, as against Jan. 1, 1958 basis of 140,742,570
tons. tNumber of orders not reported since Introduction of
'Monthly Investment Plan. +Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

127.9

pound)

—

370,310

,_Mar. 31

pound.

(per

RECEIVED

NUMBER

562,140

„Mar. 31

pig

**Nickel

536,890

Meats

cent

427.6

$35,000

(por pound)
Aluminum, 99% grade primary
Magnesium ingot (per pound)

$45,271,622

All commodities other than farm and foods.

one-half

17,945,000
8,161,000

437.2

91.351c

tCadmium (per pound)
gCadmium
(per pound)

Early

foods-

"Revised figure.

8,552,000

31.031c

York

Late Spring

U. S. DEPT. OF

products.

Processed

20,918,000

17,636,000

M. ,T. QUOTATIONS)—

(per pound)
Common, East St. Louis (per pound)
ftLondon, prompt (per long ton)
ttThree months, London (per long ton)
Zinc (per pound)—East St. Louis—
§§Zinc, prime Western, delivered (per pound)
ttZinc, London, prompt (per long ton)
ttZinc, London, three months (per long ton)
Silver and Sterling Exchange—

$69,718,840

Commodity Group—
Farm

(E.

New

$99,242,727

■

Mar. 14

commodities

Common,

2,107,772
$108,954,498

COMMISSION
(SHARES):

Other sales

WHOLESALE PRICES, NEW SERIES
LABOR — <1947-49 s= 100):

20,497,000

8,743,000

Lead-

1,053,547
20,284
1,033,263

sales—

'Total sales

All

goods

Copper—
Domestic refinery
(per pound)—
Exports refinery (per pound)
ftLondon, prompt (per long ton)
ttThree months, London (per long ton)

1,405,376
10,279
1,395,097

EXCHANGE

♦OR ACCOUNT OF MEMBERS

20,388,000
17,642,000

Potatoes—

■

•"iTotal

2,313,987
$118,922,621

dealers—

TOTAL ROUND-LOT STOCK
-

2,220,551

$111,268,421

14
14

Mar. 14
Mar. 14
Mar. 14

sales

Round-lot purchases by
Number of shares

;

Barley

.-.Round-lot sales by dealers—
Number of shares—Total sales
-Short

Wool

(customers' purchases)—t

Odd-4ot purchases by dealers (customers' sales)—
5
Number of orders—Customers' total sales
'

Nondurable
METAL PRICES

PROSPECTIVE

of shares

value

Poultry and eggs

EXCHANGE—8ECUURITIES
*

—

goods

Hourly earnings—
All manufacturing
Durable goods

Meat

OF ODDY. STOCK

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT

;

v..'

—

goods

Oil-bearing

for account of members—•

Total purchases
Short sales

Total

45,830

—:——

Total round-lot transactions

—

manufacturing

Commercial

' : ' *
.u.—~—Mar. 14
;

-Other sales
Total

562,410

405,880
60,800

10,880,378

PRICES

—

Other transactions

3.020,690

3,242,110
628,060
2,584,620

———

sales

goods

Cobalt, 97% grade (per pound—ounce ton)
Aluminum 99% grade ingot weighted averago

Other sales

Total

90,841
936,988

17,945,0(jp

March:

102.13

April 3

—:—

——

—

100,983

864,365
17,636,000

LABOR—Month of February:

11.500c

the floor—•

purchases

goods

Weekly earnings—
All manufacturing
Durable goods

11.500c

94.41

———^ar'
Har' Jf

—

transactions initiated

Other

639,471
1,751,756
11,428,726

FACTORY EARNINGS AND HOURS—WEEKLY
AVERAGE ESTIMATE —U. S. DEPT. OF

11.300c

90.20

Mar.

—,

goods

10.800c
11.500c

86.17

INDEX—

687,360
1,566,014
*12,317,305

Average —100)—

turing industries—
manufacturing

Durable

Nondurable

April 7

——

sales

699,652
1,601,649
11,577,311
101,082
868,310
17,642,000

(1947-49 Avge.=100)—

(1947-49

manufacturing

Durable

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
in which registered—
Short

All

indexes

12.000c

Transactions of specialists in stocks
Total

10,466

6,775,000

manufacturing

Payroll

22.050c

—

goods
Nondurable goods

11.000c

90.06

ACCOUNT

FOR

18,765

11,425,444

Durable

29.200c

.April 7
April 7

Orders received (tons)
Production (tons)

ROUND-LOT

15,758

COMMERCE):

February:
manufacturing (production workers)

11.500c

NATIONAL PAPERBOARD ASSOCIATION:

OIL, PAINT AND DRUG REPORTER PRICE
1940 AVERAGE = 100
—H

—II

All

30.150c

85.40

INDEX

Percentage of activity
Unfilled orders (tons) at Old of period

Ago

EMPLOYMENT AND PAYROLLS—U. S. DEPT.
OF LABOR—REVISED SERIES—Month of

11.000c

——.—

COMMODITY

MOODY'S

Spinning spindles in place on Feb. 28
Spinning spindles active on Feb. 28
Active spindle hours (000's omitted) Feb. 28
Active spindle hours for spindles in
place Feb.

30.425c

93.82

Group

Month

COTTON SPINNING (DEPT. OF COMMERCE):

All

89.78

—.

28™

COTTON GINNING (DEPT. OF
To March 20 (running bales)

24.425c

93.23

April
April
April
.April
April
.April
April

U. S. Government Bonds.

Public

Stocks Feb.

29.750c

Railroad

of Feb.

Cotton spindles active as of Feb. 28

31.425c

MOODY'S BOND YIELD DAILY AVERAGES:

Year

Month

Linters—Consumed month of February

31.200c

AVERAGES:

DAILY

of that date:]

Hours—

.April 1
April 1
April 1
April 1
April l
..April l
April l
—April l

1-—

(primary pig. 99.5%)

Straits tin

;

at__—

tZine -(delivered) at
Zinc (East St. Louis)

DEPARTMENT

months of February
consuming establishment as of Feb.

Nondurable

QUOTATIONS):

refinery at

Export

Lead

—

Consumed

In public storage as

Nondurable

Max-. 31
..Mar. 31
—31

—

Electrolytic copper—
Domestic refinery at—

•„

118

COMPOSITE PRICES:

(per lb.)
Pig iron (per gross ton)
Hi
Scrap steel (per gross ton)——

■

137

April 2

Finished steel

METAL

LlNTERS

are as

Latest

COMMERCE—RUNNING BALES:

All

(in 000 kwh.)—

(COMMERCIAL AND

IRON AGE

of quotations,

cases

either for thi

are

Estimated number of employees in manufac¬

141

INSTITUTE:

BRAD,STREET, INC.
-

BUSINESS INCORPORATIONS (NEW) IN THE
UNITED STATES—DUN &
BRADSTREET,
INC.—Month of February

All

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE

SYSTEM—1947-49

or,

Employment indexes

CC. S. BUREAU OF MINES):
(tons)
Pennsylvania anthracite (tons)

COAL OUTPUT

EDISON ELECTRIC

that date,

COTTON AND

Mar. 27

Finished and unfinished gasoline

Dates shown in first column

Ago

§93.2

Stocfcs-at refineries, bulk terminals, in transit, in pipe lines—

ASSOCIATION

Ago

production and other figures for thi

cover

Year

DistHJate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

Kerosene

Month

April 12

Mar. 27

Crude runs

Gasoline

month ended

INSTITUTE:

AMERICAN PETROLEUM

Crude oil

INSTITUTE:

operations (per cent capacity)

month available^

£>

The Commercial and Financial Chronicle

(1662)

...

Thursday, April 9, 1959

if INDICATES

Now

Securities

★ Academy Life Insurance Co. (4/27)
%•
filed 310,000 shares of common stock

(par 30

March 31

cents) to be offered for subscription by common stock¬
on the basis of 0.525 shares of additional stock
share held of record April 24, 1959 (for a 20-

holders

for each

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.
Price—To

standby).

day

★ Acoma Uranium & Oil Corp.
(letter of notification) 700,000 shares of com¬
mon
stock (par one cent).
Price—30 cents per share.
Proceeds —For
mining expenses.
Office — 642 Fifth
Avenue, New York, N. Y. Underwriter—None.
March 31

★

Adam Consolidated Industries,

Inc. (4/20-24)
March 30 filed $1,500,000 of convertible subordinated
debentures, due 1974. Price—To be supplied by amend¬
Proceeds—For general corporate purposes. Office
Ave., New York, N. Y. Underwriter—Dempsey-Tegeler & Co:, St. Louis, Mo.

ment.

—404 Fifth

★ Admiralty Alaska Gold Mining Co.
March 25 (letter of notification) 1,000,000 shares of com¬
mon
stock (par $1).
Price—30 cents per share. Pro¬
ceeds—For mining expenses. Address—Box 2642, Juneau,
Underwriter—None.

Alaska.

Advanced Research Associates, Inc.
Dec. 1 filed 400,000 shares of common stock

(par five

cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and

Williams, Widmayer Inc., Washington, D. C.

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
for

each

preferred

of.

stock

Anchor

(par

$1.75

$10).

cumulative

Office

—

215

convertible

Washington

Street^ Watertown, N. Y. Underwriter—None.
'

Aida Industries,

Proceeds—For

general corporate purposes and working
capital. Business — Manufacture, sale and distribution
of novelty items, toys and costume jewelry.
Office —
146 West 28th St., New, York, N. Y.
Underwriter —
Darius Inc., New York.
>;
lirtek

Dynamics, Inc.

(4,27-6,'ir

March 27 filed 150,000 shares of
Price—To

supplied

other loans.

amendment.

stock

(no par).

Proceeds—For

Los

Angeles,

repayment of bank
2222 South Figueroa Street,
Underwriter—S. D. Fuller & Co.,

Office

Calif.

April

filed $20,000,000 oi first mortgage bonds due
Proceeds —For property additions and
improve¬
ments. Underwriter—To be determined
by competitive
3

bidders:

Halsey, Stuart & Co. Inc.;
Brothers; Eastman Dillon, Union Securities

Lehman

Co.; Equitable Securities
Corp. and Drexel & Co.
(jointly); Harrirnan Ripley & Co., Inc. and Goldman,
Sachs & Co. (jointly); Morgan
Stanley & Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); The First
Boston Corp. Bids—Expected to be received on
April 30.
Alaska Juneau Gold Mining Co.
'
29 filed
640,660 outstanding shares

Dec.

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,

i
Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200 shares of common stock
(par $1),
of which 1,000,000 shares are to be offered
publicly and

431,200 shares

to be reserved for sale to the holders
of 6% debentures due 1962 issued
by DeCoursey-Brewis
are

Minerals

Ltd., the company's parent (payment for the
by such debenture holders may be made by
delivery of debentures at par plus interest with premium
shares

for

Canadian

common

for cash

rate of

exchange rate).
Purchasers will receive
stock purchase warrants on all shares
purchased
or

one

for the 6%

debentures of the parent at the
for each five shares pur chased.

Price—$1.25

share. Proceeds—For general corporate
working capital. Office—423 Fourth

per

purposes and

Ave., Anchorage,

Alaska.

Underwriter—To be named by amendment
Allied Publishers,
Inc., 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
Corp., Portland, Ore.

Alscope Explorations Ltd.
March

filed

1,000,000

capital

stock, of
which 700,000 shares are to be offered
publicly in the
United States, and
300,000 shares in Canada. Price—Re¬
nted to the then current
market price on the Canadian
Stock Exchange (31 cents
per share on March 16). Pro¬
ceeds—For properties,
drilling costs, working capital and
general corporate purposes.
Office
303 Alexandra

—

of New

both

American Asiatic Oil

Corp.
»
shares of capital stock. Price—
Two cents per share. Proceeds—To selling stockholders.
Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter
Gaberman & /
clagedorn, Inc., Manila. Republic of Philippines.
Nov. 24 filed 100,000,000

ADDITIONS

SINCE

ITEMS

REVISED

in Newton, N. J.
Un¬
Co. and Riter & Co.,

company

Pressprich

' ISSUE

York.'

if Apache Oil Corp.
March .30 filed 350 units

of participation in the Apache
1960. Price—$12,000 per unit. Proceeds—
general corporate purposes. Office—523 Marquette

Oil Program
For

Avenue, Minneapolis, Minn.
corporation's subsidiary.

Underwriter—APA,

Inc.,

the

American Biltrite Rubber Co.,

(4/20-24)
March 31 filed 325,000 shares of common stock (no par).
Price
To be supplied by amendment.
Proceeds — To
selling stockholders. Underwriter—Goldman, Sachs &
Co., New \ork.
Inc.

—

American

Arkansas Power &

March

filed

Light Co.

(5/5)
shares of cumulative preferred
Proceeds—For property additions and

75,000

stock

(par $100).
improvements. Underwriter—To be determined "by. com¬
petitive bidding. Probable bidders: Lehman Brothers;
Blyth & Co., Inc., and Smith, Barney & Co. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co.;The First
Boston Corp. and W. C. Langley & Co. (jointly).. Bids—

Buyers Credit Co.
5,000,000 shares of common stock, of which
4,545,455 shares of this stock are to be offered for public
*ale at $1.75 per share. [Shares have been issued or are
issuable under agreements with various policy holders
n American
Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix) permitting them
.o
purchase stock at $1.25 per share. Sales personnel
iave
been given the right to purchase stock at $1.25
jer share up to the amount of commission they receive
-n stock sales made by them.]
Proceeds—For the openaion of other branch offices, both in Arizona and in other
dates.
Office—2001 East Roosevelt, Phoenix, Ariz. Un-

(5/1)
$1,000,000 of sinking fund debentures due
1984
(convertibleruntil April 1, 1969).
Price—To be
supplied by amendment. Proceeds—For property addi¬
tions and improvements
Underwriters—Snow, Sweeney
& Co;,' Inc
and A. C. AJlyn & Co.; Inc., both of Ne\V

ierwriter—None.

York.

Nov. 13 filed

if American Electric Power Co., Inc.

173,000 shares of common stock to be of¬
employees pursuant to American Electric Power
Key Employee Stock Purchase Plan—1959. Of¬
fice—30 Church St., New York, N. Y.
April 6 filed

fered to

System

Growth

American

Fund, Inc., Denver, Colo. >
1,000,000 shares of capital stock (par one
Price—At market.
Proceeds—For investment.
Office—800 Security Building, Denver, Colo.
Under¬
writer—American Growth Fund Sponsors, Inc., 800 Se:urity Bldg., Denver 2, Colo.
17

Vov.

American

Independent Reinsurance Co.
March 25 filed 514,500 shares of common stock, to be
offered for subscription by common stockholders at the
To

1.4

new

shares for each

one

share held.

Price-

supplied by amendment. Proceeds—To increase
capital and surplus. Office—307 S. Orange Avenue, Or¬
lando, Fla.
Underwriters—Francis I. du Pont & Co.,
Lynchburg, Va., and Goodbody & Co., New York, N. Y.
American
Feb.

Investors

Underwriter—Assets Investment Co.,

Louisiana.

Inc., New Orleans,

;

American Mutual Investment

Co., Inc.
c
:
490,000 shares of capital stock. Price

Dec. 17, 1957, filed
—$10.20 per share.

notes,

Company

Proceeds
trust

second

may

and

construction loans. "

develop shopping menters and build or
Office—900 Woodward Bldg.,

ourchase office buildings.

Washington^ D. C.

Underwriter—None. Sheldon Maga¬

zine, 1201 Highland Drive, Silver Spring, Md., is President..
Amican

Petroleum & Ne±«ral Gas Corp. Ltd. /
745,000 shares-of capital stock (no par), '
of which 500,000 shares are to be sold for the account
March 2a filed

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
Street, Regina, Saskatchewan, Canada.
Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
(
,

if American

Research

(4/20-24)

Development

Corp.

March 31 filed

100,000 shares of common stock (par $1).
Price—To be supplied by amendment. > Proceeds—For
working capital. Office—200 Berkeley St., Boston, Mass.
Underwriter—Lee Higginson Corp., New York.
American Telemail

Service, Inc.
17, 1958, filed 375,000 shares of common stock (par
$1). Price—$4 per share. Proceeds—To purchase equip¬
ment and supplies and for working
capital and other
Feb.

corporate purposes.- Office—Salt Lake City, Utah.
Treat

Un¬
New. York.

Co., Inc., of
Change
in Name—Formerly United States
Service, Inc.
' ^

Telemail
.

•

Ampex Corp.
March 12 filed 204,191 shares of common stock
(par $1)
being offered for subscription by common stockholders
the rate

one

new

for

each

held

share.

common

Proceeds—To pur¬

chase manufacturing and

engineering equipment, and for
working capital. Office —.250 Bellevue Ave., Montclair,
N. J. Underwriter—None.

—

To be supplied by amendment.
and

are

to be offered for public sale for the

the

common

will

selling stockholder. Price
supplied by amendment. Proceeds—To acquire
new Bowling centers and increase
working capital (part
-o
be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment.
Offering—Expected in two weeks.
—To be

Atlantic

Research

Corp.

(4 20-24)

March 31 filed 110,000 shares of common stock, of which
100.000 shares are to be offered publicly and- 10,000

shares
Price

employees under company's incentive
be supplied by amendment. Proceeds

-—

plan.
To

—

reduce short-term bank loans and to provide equipment
for development and production of propellant rockets.

Office—Alexandria, Va. Underwriter—Johnston. Lemon
& Co., Washington: D. C.
Atlas

Investment Co.

Feb, -3 filed 50,000 shares of common voting stock (par
$10).
Price —$25 per share.
Proceeds — To purchase
additional contribution certificates of Great Basin Insur¬
ance

Co..

Office—704

Virginia Street, Reno. Nev.

dervvriter-wNone.-...
★ Austral

1960 Corp.

Unj-..

for Oil

Exploration
April 1 filed $5,000,000 of Oil Exploration Agreements
-for 1960^ Proceeds—To acquire property interests and
for drilling operattonsfOffice—05#- FJf'th - Aveiiue, New
York, N. Y.
'
/v '
- '
Australian Grazing & Pastoral Co., Ltd.
13 filed 4,000,000 shares of common stock.

Jan.

Price—

At par

(56% cents per share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.

L, Cisco, Tex.

Robert Kamon is President.

<.?

Underwriter—None.

■■■■>.

;

Automatic Canteen Co. of America
March 2 filed 292,426 shares of common 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 are to be issued
of stock options. Underwriter—None.
Bankers

upon

the exercise

Fidelity Life Insurance Co.

Feb.

28,1958, filed 258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
and 133,740 shares to employees pursuant to stock pur¬
chase options. Priee—To public, $6 per share. Proceeds—
For expansion and other corporate purposes. Office—At¬
Underwriter—None.

lanta. Gj>

Bankers Preferred Life Insurance Co.

Jan. 30 (letter of notiiftation) 100,000 shares of

common

$1.60). Priee—$3 per share. Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.
(par

Underwriter—Ringsby

Underwriters,

Inc.,
*

Denver

•

Bargain City, U. S. A., Inc.

equip

plant

space

of the
Pro¬

adjoining

(4 24-27)

Dec. 29 filed 5,000,000 shares of common stock

(no par),
later reduced to 500,000 shares (par SI).
Price—89 per
share. Proceeds—For expansion and acquisition or leas¬
ing of new sites. Office—2210 Walnut Street, Philadel¬

85,000 shares

construct

t>f the company and
be offered for the account of a

stockholders,^ and 112,500 shares for the account
Price

Bowling Centers, Inc.

preferred shares

phia, Pa.

ceeds^—To

account

Anken Chemical & Film
Corp. (4/16-24)
March 27 filed 225,000 shares of common
stock, of which
112,500 shares are to be sold for the account of selling
company.

•

notification) 48,000 shares of
per

Associated

Colo.

(par $1). Price—$4

Nov. 24 filed 300,000 shares of 20-cent cumulative con¬
vertible preferred stock (par one cent) and 50,000 outstahding shares of common stock (par one cent). The

it Analab Instrument Corp.
stock

Proceeds—For mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo, Under¬
writer— Bruno-Leneher; Inc.,
Pittsburgh, Pa.

stock

March 30 (letter of

(EDT)

a.m.

Armstrong Uranium Corp. Jan. 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.

April 2; rights to expire on April 17. Price—$52.50
per share. Proceeds—For working capital. Underwriters
—Blyth & Co., Inc., San Francisco and New York: and
Irving Lundborg & Co., San Francisco, Calif.
on

11:30

★ Arkansas Western Gas Co.

Office—1301 Avenue

■

derwriter—Amos

received

April 6 filed

For investment in first

—

notes

May 5.

•

Syndicate, Inc.

(letter of notification) 100,000 shares of com¬
mon
stock (par 10 cents).
Price—50 cents per share.
Proceeds—For operation of an* apartment hoteL Office
513 International Trade Mart, New Orleans -12, La.

Expected

filed

:ent).

-.rust

(4/30)

1989.

Probable

present facilities of the

derwriters—R.

—

New York.

if Alabama Power Co.

Bldg., Edmonton, Canada. Underwriter—None in United

—

common

additional working capital and for
and

Registration

States; Forget & Forget in Montreal, Canada.

rate of

Inc.

March 16 (letter of notification) 50,000 shares of cumula¬
tive preferred stock (par 75 cents). Price—$1 per share.

•

Underwriter—Bear, Stearns & Co., New York.

Barnes

Engineering Co.

(4/20)

March 20 filed 110,000 shares of .common
Wells &

25.000

are

stock, of which

to be offered for public sale by Fox,

Rodgers, the holder thereof; and the remaining

for

the

account

of the

Barnes company.

Number 5836

Volume 18S

The Commercial and Financial Chronicle

...

Price—To be

supplied by amendment. Proceeds—$104,a 4% note due in December; $100,000 to
pay the remaining tax liability of a former subsidiary;
and the balance will be added to working capital and
used for general corporate.'purposes, including approxi¬
mately $100,600 for plant and test -equipment, fixtures
and leasehold improvements in connection with plantexpansion. Office—30 Commerce Rd.j Stamford, Conn.
Underwriter—Hayden, Stone & Co., New York.
..

905 to prepay

if Barnstable Bay Inc.
31
(letter of notification)r

March

$204,000

of undivided interest

amount

principal

the Wanderlust Motel

property and- selling at various prices." The securities
are being offered for fractional interest, in.the fee title
of the land? buildings and ^furnishings of. the motel.
Address—Route 6A, Dennis, Mass.
Underwriter—None.
Basic

Atomics- Inc.

March 5 filed

Underwriter—None.

Biilups Western Petroleum Co.

(4/20-24)

April 1 filed $5,000,000 of 6% participating, debentures
due May 1, 1984 and 1,000,000. shares of common stock
to
be offered in units of $10 of debentures and two
shares of stock which will not be transferable separately
until Nov. "14, 1959.
The company is also registering

50,000 shares of common stock, not included in the units,
which will be offered to its employees. 'Price—To be

supplied" by amendment.' Proceeds—To be used in the
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,
Alabama, Missouri* and Tennessee. Underwriter—The
Johnson, Lane. Space Corp., Savannah,.Ga.t
•

Hills

Black

March

Power

stock of record April 1, 1959 on the basis of one
each 11 shares held (with an over-sub¬

share for

new

scription privilege); rights to expire on April
Price—$28.25 per share. Proceeds—To be used to
for property additions and

X V/T

Light Co.

13 filed 32,198 shares of common stock

(par $1),
being offered for subscription by holders of outstanding

$400,000 of bank loans obtained primarily for such
Office — 621 Sixth St., Rapid City, S. Dak.
Underwriter—Dillon, Read & Co. Inc., New York. Offer¬
ing—Expected today (April 2).
purpose.

Boonshaft & Fuchs,

Inc., Huntingdon Valley, Pa.
(letter of notification) 90,000 shares of com¬
mon stock (par 25
cents)/ Price—$2 per share. Proceeds
—For expansion; to repay bank loans and for
working
capital.
Office—994 Byberry Rd., Huntingdon Valley,
March 20

Pa.

Underwriter—Woodcock; Hess, Moyer & Co., Inc.,

Philadelphia, Pa,

Bridgehampton Road Races Corp.
(letter of notification) 15,000 shares of common
stock (par $1) to be offered for
subscription by stock¬

Oct. 23

holders of record Nov. 1, 1958 on the basis of one new
share for each four shares held; unsubscribed shares
will be offered to current creditors in
or

part of claims, at the

of claims

after
To

current

(Offering to stockholders—underwritten by Snow,

April 13

Sweeney &

$11,068,275

t,Blair

Inc.)

Co.,

Corp.

Dynacolor

•,//

Corp.

Hermetic

Seal

Treat

jJ-Common

Co.,

$300,000

Inc.)

Securities Corp.;
Hutzler

and

4.. April 14
(Bids

Louisiana

Power

(Tuesday)

April

invited)

ISSUE
(W. W.

Moog

(J, J.)

Foil

Wometco

Common
100,000

(Shields & Co.)

Bids

11:30

$875,000

y:;'/J

(R.

Chemical

Film

San

Chadboum

Eastman

Philco Corp

Debentures
$3,000,000

.—

upon

Corp., Aurora, Ohio

Cemex of Arizona, Inc.

For working capital.

Address—P. O. Box 1849, 3720 K.

Continued

May 4

Adam

Consolidated

Debentures

(Goldman.

(Monday)

Industries, Inc

(Dempsey-Tegeler & Co.)

American Biltrite

Rubber
Sachs

325,000

(J.

-Debentures

$325,000

American Research & Development Corp
(Lee

Higginson Corp.)

(Johnston, Lemon & Co.)

Barnes

EST)

a.m.

iHayden, Stone & Co.)

110,000

—.Common
shares.^.,

Biilups Western Petroleum Co.—
(The Johnson. Lane.

Central Louisiana Electric Co.,
(Bids

noon

—-Debentures

Space Corp.)

EST)

$5,000,000

(Tuesday)

Light Co

11:30

Preferred

EDT)

a.m.

$7,500,000,

May 1.1

105,000

Co.)

Debentures

May 12

El Paso

(Bids

(Offering

EST)

$2,000,000

Co.)

113,079

Stearns

May 19
El

Paso

Electric

Common
-«

______Bonds

Paso

Electric

$30,000,000

Units

—

Interstate

$18,000,000

Bonds
EDT)

a.m.

Preferred

May 20

EDT)

$2,000,000

(Wednesday)
Bonds

(Bids 11

Brooks

$3,500,000

Power

Common

stockholders—underwritten by
& Co., Inc.) 100,000 shares

(Bids 11 a.m.

(Paine, Webber, Jackson & Curtis)

(Tuesday)

(Bids

(Thursday)

(April 23
Laguna Niguel Corp

(Peter Morgan & Co.) $450,000

Common
Bear,

Fund

Development

(Friday)

Seaboard Plywood & Lumber Corp

____________

(Morgan Stanley & Co.)

(Offering

Bonds
$15,000,000

units

«tockholders—Underwritten by
& Co.) 1,500,000 shares

Italy

Bonds

$16,000,000

(Wednesday)

11 a.m. EDT)

May 15

stockholders—underwritten

Corp.

EDT)

a.m.

(Bids

Common & Warrants

11:30

Preferred

a.m.

Bros.

EDT) $6,000,000

a.m.

May 21

(Thursday)

Lane,, Space

Webber.

Jackson

Shepard

DeJur-Amsco
(H.

Florida

Steel

Corp.

Co.,

■

Common

Corp.)

74,728

Curtis

and

Cooper Tire & Rubber Co
(Paine,

Inc.)

Prescott,

$3,500,000

Corp.

(S.

Public

Maine

Smith,

Precon

Inc.;

Corp

ana

Corp.___

Peabody & Co.

and

250.000

—

Model,

Corp

Securities Co.,

(Offering

Corp.

Lemon

April 28

by The First

Co.)

Common

Roland & Stone}

Bends

(Friday)
Common

(Offering to stockholders) $300,000

June 2

(Tuesday)

Public Service Electric & Gas Co

$947,200

(Bids

to be

invited)

Debentures

$30,000,000 to $40,000,000

Virginia Electric & Power Co

Common

(Bids to be received) $20,000,000 to $25,000,000
(Bids

a.m.

EDT)

(White. Weld & Co.)

Bonds
June 23

$20,000,000

Southern Nevada Power Co

Common

(Thursday)

Generating Co

Commerce, Washington, D. C

Boston

Di-Noc Chemical Arts, Inc
Debentures
(Offering to stockholders—underwritten by
Blair & Co., Inc.)

Bank of

$10,000,000

(Tuesday)

York, Inc.—Bonds

(Bids to ba invited) <25,000,000

May 29

stockholders—underwritten

and Johnston,

(Tuesday)

Inc.)

Preferred

$14,000,000

$50,000,000 to $60,000,000

May 28
Southern Electric

Common

Netherlands

Bonds
EST)

May 26

Common

Inc.; Merrilly Lynch, Pierce, Fenner &
Kidder, Peabody & Co.) 50,000 shares

and

(Monday)

Consolidated Edison Co. of New

$875,000

Preferred
$1,500,000

Northern Illinois

(Tuesday)
—Bonds

Gas Co

(Bids to be invited) $20,000,000

April

Kidder, Peabody & Co.) $2,135,700

Electronics

(Kidder,

noon

(Bids 11 a.m. EDT)

150,000 shares

Washington Gas Light Co

Alabama

Bonds
be invited)

May
Arkansas

June 25

(Thursday)

Power
(Bids

(Paine, Webber, Jackson & Curtis and Stone & Webster
Securities Corp.) 800,000 shares

Loral

Co.)

Service
and

Debentures

Telephone & Electronics Corp.

(Bids

-Common

Public Service Co. of Colorado

Byllesby & Co., Inc.) 225,000 shares

May 25

...Common

Fuller

Electronics

(Offering to stockholders—underwritten by McDonald <fc Co.

General

821,256 shares

West Penn Power Co

(A. G. Becker & Co.

Common

.___/

$4,500,000

Co.)

Dynamics, Inc

...Common

•___

Byllesby & Co., Inc,) $1,000,000

(Offering to stockholders—underwritten by Boettcher & Co.,
Inc. and Bosworth, Sullivan & Co., Inc.) 310,000 shares

Airtek

Debentures
&

Stearns

Common

(Offering to stockholders—no underwriting)

Common

April 27 (Monday)
Academy Life Insurance Co

-Bonds
„•

(Friday)

April 24
Bargain City, U. S. A
(Bear,

120,000,000

ba invited)

September 10

$5,000,000

(Thursday)

Debentures

Inc. and A. C. Allyn & Co., Inc.)
$1,000,000

(Thursday)

Mississippi Power Co.
(Bids

(Friday)

Western Gas Co

(Snow, Sweenev & Co.,

_—___Common

May 13
Power

(Wednesday)

B. S. F. Co
Sutro

Debentures

Ca_

Electric

Common

Co._

(Tuesday)

Southwestern Electric Power Co

Idaho

(Offering

$5,500,000

(Offering to stockholders—underwritten by Stone & Webster
Securities Corp.) 76,494 shares

and

(J. Barth & Co.) 300,000 shares

Bonds

PST)

a.m.

(Offering to stockholders—may be underwritten by
Eastman Dillon, Union Securities & Co.) $10,038,700

Common

Edison

Central Illinois Light Co.—

Co.

(Monday)

Nevada Power Co

$5,000,000

Securities

Union

Dillon,

(Charles Plohn & Co.

Inc

$5,000,000

Coastal States Life Insurance Co
Johnson,

Preferred & Common

(Bids

Common

110,000 shares

Engineering Co.——-:

(The

Com.

100,000 shares

Corp.___4.____-l;___/:::/iCT6mmon

Atlantic,. Research

page

Barth & Co.) $6,300,000

Arkansas Power &

Southern

Co.

$1,500,000

Co., Inc.-—_-Common

Co.)

(Monday)

Consolidated Natural Gas Co

April 20

(4/15)

Underwriter—Shearson, Hammill & Co., New York.

(White, Weld & Co. an£ Dlttmar & Co.) 200,000 shares

$20,000,000

Co.)

Products

.Common

Corp.)

Maine Fidelity Life Insurance Co

(Smith, Barney

Carlon

May 5

Dewar

Common

Co.) 225,000 shares

Gotham, Inc
Co., Inc.)

•

(Bids

to stockholders—underwritten by Dean Witter
Blyth & Co./Inc.; William R. Staafs & Co.;* r *

Co.;

(Offering T.o stockholders—underwritten by R. S. Dicksor.
&

stock, to be of¬
the exercise of op¬
tions which have been or are to be issued pursuant to
the company's Employees' Stock Purchase Plan.
common

Common

11:00

Diego

Southern

Corp.___

Pressprich & Co. and Riter &

Ellis

Inc._

(Bids

."April 16 (Thursday)
Anken

and

April 21 (Tuesday)
State Telephone Co.

Penn-Texas

Bonds
$14,000,000

EST)

a.m.

if Butler Brothers, Chicago, III.
April 6 filed 40,000 shares of
fered for sale by the company

Common
Co.

First National Trust & Savings Bank

Common

Wisconsin Power & Light Co
•

derwriter—Sutro Bros. & Co., New York.

Magma Power Co

Enterprises, Inc

Brockton

& Ives Co

warrant, for subscription by

one

May 6 (the warrants carry an initial exercise price of
$20). Price—To be supplied by amendment. Proceeds—
For working capital and other corporate
purposes. Un¬

(Offering to stockholders—underwritten by Laird
& Co., Corp.) 70,196 shares

(Bids

$300,000

Inc

Peabody

April 22

Carlon Products Corp.Little

share of stock and

stockholders of record April 21, 1959, at the rate of one
unit for each three shares then held; rights to
expire on

.......Common
Co.I

Blunt
Simmons) 130,000 shares

(Kidder,

Preferred

(Shearson. Hammill & Co.)

one

CALENDAR

Schroeder &

Servocontrols,

$7,500,000

(Wednesday)

(jointly); Kidder,

Greater All American Markets, Inc

$11,000,000

Light Co
be

(4/22)
113,079 shares of capital stock (par $1)
and warrants for the purchase of an additional 113,079
shares, to be offered in units, each unit consisting of

Peabody & Co., White, Weld & Co. and Shields & Co.

Frito

Bonds

CST»)

a.m.

(Bids to

Kuhn, Loeb & Co., Salomon Bros. &

Wood, Struthers & Co.

(Offering

SIMCA Scciete Anonyme, of France-Common
(Offering to stockholders—not being underwritten) $10,120;000

Central Power & Light Co

F. Co.

additional working capital and other corporate purposes.

(4/22)

(Lee Higginson

Co.). $1,877,700

Corp.-,---

(Amos

Co.

Halsey, Stuart & Co. Inc.; Stone & Webster

Common

Union Securities &

Nov. 17 (letter of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds—

—

bidding. Prob¬

Diamond

J_.l__-.__—

(Eastman- Dillon,

March 26 filed

able bidders:

Edison

;

/(Lee Higginson Corp.) $1,600,000
Fed-Mart

convertible

Business—Manufacturer of plastic pipe and pipe fittings.

Brockton

J--Debentures

_—■____

Box-506,

Brookridge Development Corp.
19 (letter of notification) $200,000 of 6% 15-year
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.
Dec.

150,000

March 6 filed 40,000 shares of preferred stock
(par $50).
Proceeds—To reduce short-term bank
loans.
Under¬
writer—To be determined by competitive

$1,250,000

Common

(Blair & Co., Inc.)

(EST)

March 12 filed 100,000 shares of common stock (no
par).
Price—To be supplied by amendment.
Proceeds—For

Republic

Corp.

Dorsey

Proceeds—

a.m.

None. Offer¬

Preferred

—

ing—Has been delayed.

(Monday)

UU-r

Corp.

Dorsey

Price—$4 r~~ share.

creditors. /Addres..

Bridgehampton, L. I., N. Y. Underwriter

^-Preferred

Co4 Inc. and A. C. Allyn & Co.)

one

Mary Carter Paint Co

(Friday)

Southern Union Gas Co.—^

payment of all
share for each $4

discharged; rights to expire about two weeks

mailing of offer.

pay

rate of

(jointly). Bids—To be received up to 11
April 22 at 49 Federal St., Boston, Mass.

16.
pay

repay

some

NEW
April

improvements and to

ivr.V

:•

444,246 shades of common^stoch:^(par- If)

cents). Price—At prevailing market price, in the Overthe-Couhter Market/ Proceeds—To selling stockholders.
•

common

(1663)

Georgia Power Co
(Bids to ba invited) $18,000,000

The Commercial and Financial Chronicle

Continued from page

December,

Ariz. Underwriter—L. A. Huey Co.,

32nd Street, Yuma,

Electric Co., Inc. (4/20)
of first mortgage bonds, series

Louisiana

Central

March 20 filed $5,000,000

I, due 1989. Proceeds—To repay $1,000,000 of bank loans
and to finance construction program. Underwriter—To
be determined by competitive bidding. Probable bidders:

& Co.

Stuart

Halsey,

Inc.: Salomon Bros. & Hutzier,

Merrill Lynch. Pierce, Fenner & Smith, Inc., and Strouci
& Co. (jointly); Kidder, Peabody & Co.; White, Weld

Bids—Expected to be received up Ur noon (EST)

& Co.

April 20.

.y.j;r.;

Power & Light Co.

Central

bonds, series

Proceeds—To finance part of com¬
pany's construction costs and to prepay and discharge

I, due April 1, 1989.
loans.

bank

Underwriter

—

be determined by

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc.; Lehman Brothers and
Clore Fo.rgan & Co. (jointly); Kidder, Peabody & Co.;
Merrill Lynch, Pierce, Fenner & Smith and Salomon
Bros. & Hutzier (jointly); Kuhn, Loeb & Co., A. C.
Allyn & Co., Inc., and Bear, Stearns & Co. (jointly);
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received up to 10 a.m. (CST) on April 14.
de

Cerro

Pasco

Corp.
$8,040,2()U of 5V>% subordinated deben¬
tures due 1979 (convertible until Dec. 31, 1968) and 61,March

S30.371c

filed

being issued to stockholders
of Consolidated Coppermines Corp. (which is to be dis¬
solved and liquidated) on the basis of 0.107126 of a
share of common stock
(par $3) and $14 principal
'amount of debentures of Cerro de Pasco Corp., plus
2.678 cents in cash for each Consolidated Coppermines
Underwriter

—

None. Statement effective

March

25.
Chadbourn

Gotham, Inc.

(4/16)

March 26 filed $3,000,000 of 5.90% convertible subordin¬
ated debentures, due April 1, 1971 (with warrants to

purchase 300,000 shares of common stock) to be offered
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.
Price
To be supplied by amendment.
Proceeds — To
provide additional working capital to finance the com¬
pany's expanding business and will currently be applied

for

—

to the reduction of short-term bank loans.

•—It.

S. Dickson &

Underwriter

Co., Iiic., Charlotte. N, C., and New

York, N. Y.

purchase and installation of a dual tube pro¬
working capital. Office—Lima and
Avwue, Findlay, Ohio.
Underwriter—Paine,
Webber, Jackson & Curtis, New York; and
Prescott,
the

for

duction line, and for
Western

Chattanooga

Industrial Development Corp.
37,500 shares of common stock. Price—
$20 per share. Proceeds—For purchase and development
of industrial properties and for working
capital. Office

—Chattanooga. Tenn.

Underwriter—None.

City Lands, Inc., New York
'
Jan. 13 filed 100,000 shares of capital stock. Price—$20
per share.
Proceeds—To invest in real estate. Office—
Room

3748, 120 Broadway, New York, N. Y. Underwriter
—Model, Roland & Stone, New York. Offering—Post¬
poned indefinitely.

Harlan Lowell, 2200 Kenton,
Aurora, Colo.

Underwriter
—Lowell, Murphy & Co., Inc., Denver, Colo. >
if Coastal States Life

Insurance

Co.

(4 20-24)

March

31^ filed 74.728 shares of 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.:
and Walston & Co.,

Inc., New York.

Feb. 25 (letter of notification)
$220,000 of 6% unsecured
debentures due April 1, 1964 and

1,100 shares of common
(par $1) to be 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.

etock

Columbia Gas System, Inc.
March 5 filed 1,799,057 shares of common
stock (par $10)
being offered for subscription by common stockholders
on the basis of one new share
for each 15 shares held on
April 1, 1959; rights to expire on April 20.
Price—$21.75

Proceeds

—

To finance System construction

expenditures.
man

Underwriter—Lehman Brothers and East¬
Dillon, Union Securities & Co. (jointly).

Commerce Oil Refining Corp.
Dec. 16,1957 filed
$25,000,000 of first mortgage bonds due
Bept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares
of common stock to be
offered in units as follows:
$1,000 of bonds and 48 share»
of stock and $100 of debentures
*Tlce—To

nine shares of stock

supplied by amenument.

Proceeds

—

T«

instruct

York

refinery. Underwriter—Lehman Brothers. Nev
Offering—Indefinite.

Commercial Investors
Corp.
(letter of notification) 900,000 shares of
mon stock.
Price—At par (10 cents per share).

Nov. 28

take

City

Bait Lake

cent) and 108,667 common stock purchase

warrants, each unit consisting of one common

share and

warrant, being offered for subscription by holders
jf the common stock of Cormac Photocopy Corp. at the
rate of one such unit for every six shares of Cormac

one

Photography common held on April 9, 1959: rights
expire on or about April 22. Price — $2 per unit.
Proceeds—To finance the company's development and
to

York,
Underwriter—Ross, Lyon & Co., Inc., New York.

marketing program. Office—80 Fifth Avenue, New

Co.

if Cotter

(letter of notification) 1,400 shares of class A
and 700 shares of non-cumulative pre¬

March 27

stock

stock. Price—At par ($100 per share). Proceeds
working capital. Office—2740 N. Claybourn Ave¬
Chicago, 111. Underwriter—None.

ferred
—For

nue,

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding

March

common

stock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders.
Office—145 Conklin

Underwriter—None.

Ave., Binghamton, N. Y.

j£V£st%ent Office—450

Underwriter—Eari

com¬

Pro-

So. Main St., Salt
J. Knudson

& Co..

City, Utah.

★ Consolidated Cigar Corp.
April 3 filed 31,200 shares of common
stock, to be offered
certain officers and.
key employees of the company

stock

(par

Price—$3 per share. Proceeds—For acquisition:
>f undeveloped real estate, for organization or acquis!->
tlon of consumer finance business, and balance to be.
cents).

used

for

Underwriter — Investment
a best efforts basis.

working

Service Co.,

capital.
Denver, Colo.,

if Dodge & Cox Fund, San Francisco, Calif.
30 filed
(by amendment) an additional

March

shares of beneficial interest in the Fund.

Price—At

54,017
mar¬

Proceeds—For investment.

ket.

(4/13-17)
Z
shares of 6% cumulative preferred
stock, series A, $50 par (with warrants attached for the
purchase of 50,000 common shares) and 150,000 shares
of common stock (par $1).
Price—To be supplied by
amendment.
Proceeds—Together with $1,000,000 of in¬
stitutional borrowings and other company funds, will
be applied for purchase by its subsidiary of the assets
of Dorsey Trailers, Inc. and to the retirement of the
latter company's notes and installment contracts, in the
approximate amounts of $4,000,000 and $670,392, re¬
spectively. Office—100 West 10th St., Wilmington, Del.
Underwriter—Blair & Co., Inc., New York.
Corp.

Dorsey

March 20 filed 25,000

•

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class a
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds — For repayment of loan; purchase of 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.
if Cycon,

(letter of notification) 300,000 shares of com¬
cents). Price—$1 per share. Proceeds

March 25
mon

Inc.

stock (par 10

—For

Office—Mearns Bldg., 142-148 N.
Pa. Underwriter—Sano &

working capital.

Washington

Scra'nton,

Ave.,

Offering—Expected in May.

Co., New York, N, Y,

Finance, Inc.
March 9 filed $500,000 of 7% subordinated debentures,
due Jan. 2, 1974, with attached warrants for the pur¬
chase of 100,000 shares of class A

common

stock.

Price

—At face amount

(in units of $500 each). Proceeds—To
finance making of additional loans and ,to reduce shortterm debt.
Office—3800-34th St., Mt. Rainier, Md. Un¬
derwriter—Paul C. Kimball & Co., Chicago, 111., on a

best efforts

basis.

if Dan Creek Hydraulic Placer Mines, Inc.
March 25

assessable

Price—At

($1

par

share). Proceeds—For
Wall Street, Seattle, Wash.

per

mining

expenses. Office—500
Underwriter—None.

C. Transit System,

Inc. (Del.)
outstanding shares of class A com¬
Airways, Inc., which owns
all of this stock, proposes to give the holders of its out¬
standing class A stock, and holders of its outstanding
512% convertible subordinated debentures, transferable
warrants, which evidence the right to purchase shares
stock. Trans Caribbean

class A stock

the

stock

Trans

for

each

three

Caribbean

the basis

the

which

one

holders

such

share of class

class A

either

stock

hold

which

they are entitled upon con¬
version of their debentures (with an oversubscription
privilege). Employees of Trans Caribbean and its sub¬
sidiaries will have the right to purchase up to 100,000
of the said 350,000 shares.
Price—To be supplied by
amendment. Proceeds—To selling stockholder.
Office—
Washington, D. C. Underwriter—None.
•

DeJur-Amsco

Corp. (4/20-24)
March 31 filed 225,000 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.
•

DeJur-Amsco

March

filed

Corp.

(4/20-24)

$1,000,000

—

if Eckert Mineral Research, Inc.
March 27 (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.
if Electro Networks, Inc.
April 2 (letter of notification)

Proceeds

—

retire

convertible subordinated
be supplied by amend¬

mortgage loans

and bank

notes and to

provide additional working capital and for
general corporate purposes: Underwriter—H. M. Byllesby
& Co., Inc., New York and Chicago.
if Delta Foods Corp.
(letter of notification) $126,540 of debentures,

March 23

21,900 shares of class A common stock (par $8) and 3,515
shares of class B common stock (par one cent) to be of¬
fered in units of
common

$36 of debentures, six shares of class A
eiass B common stock.

stock and one share of

Price—$85 per unit. Proceeds—For acquisition of pro¬
posed plant site; engineering plans and for general work¬
ing capital. Office—4325 Alan Drive, Baltimore 29, Md.
Underwriter—None.

com¬

Underwriter—Charles Plohn & Co., New York. N. Y.
Emerite Corp.
19 (letter of notification)

250,000 shares of series 3
(no par) to be offered for subscription
on the basis of one share of series 3
stock for each three shares of series 1 and/or series 2
stock

:ommon

stockholders
stock

held; unsubscribed shares to other stock¬
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capitaL

common

Office—333 S. Farish Street, Jackson,

June 5 filed 350,000 shares of common

stock.

Price—$1

share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em
porium, Pa. Underwriter—None.

Miss. Underwriter

—None.

if Emerson Electric Manufacturing Co.
March 30 filed 25,962 shares of common stock, to be of¬
fered to employees of the company and its subsidiaries
who hold options under the company's 1958 Supervisory,
Administrative and Professional Employees Stock Option
Plan. Price—$32.25 per share.
•

Eurofund, Inc.

Feb. 26 filed 2,500,000

Price—$20
—14
&

per

Wall St.,

share.

Co., New York.
Federated

Dec.

filed

debentures

shares of common stock (par $1).
Proceeds—For investment. Office

New York.

Underwriter—Glore, Forgan
Offering—Temporarily postponed.

Corp. of Dolawaro
$918,000 of 6% convertible

due

1968.

The

company

subordinated

proposes

offer

1210,000 of the debentures to purchase the capital stock
if Consumers Time Credit, Inc., a New York company;
£442,000 of the debentures in exchange for Consumers
iebentures; and $226,000 of the debentures in exchange
lor the outstanding 12% debentures of three subsidiaries
)f Federated. Office—1 South Main Street, Port Chester,
NT.

Underwriter—None.

Federated
tfov.

Finance

Co.

(letter of notification) $300,000 of 10-year 6%
»enior subordinated debentures. Price—At par (in delominations of $1,000 each). Proceeds — For working
capital, to make loans, etc. ; Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Sugene C. Dinsmore, Omaha. Neb.
e

Fed-Mart Corp.

(4/13-17)
of common stock. Price—
$11 per share. Proceeds—For acquisition of land, build¬
ings and fixtures for two new stores; for expansion of
operations of Reid Oil Co., a subsidiary; to reduce debt;
and for working capital.
Office—8001 Athello St., San
Diego,-Calif. Underwriter—Eastman Dillon, Union Se¬
curities & Co., New York.
March 16 filed 170,700 shares

Finance For Industry,

Derson Mines Ltd.

per

shares of

—

debentures due 1974. Price—To
ment.

100,000

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.
mon

holders.

Mar. 23 filed 350,000

mon

Dynacolor Corp., Rochester, N. Y. (4/13-17)
$1,600,000 of 7% sinking fund debentures
due 1969 and
155,000 shares of common stock.
The.
company proposes to offer the debentures and 80,000
common shares in units, consisting of $100 of debentures
and five common shares. Remaining 75,000 outstanding
common
shares
are
to
be
offered
for sale by the
holders thereof.
Price—To be supplied by amendment.
Proceeds
To pay bank loans and for construction,
equipment and development. Underwriter—Lee Higginson Corp., New York.
March 24 filed

/an.

(letter of notification) 300,000 shares of non¬
common stock to be offered in units of 1,000

stockholders

Colorado Water & Power Co.

Inc., Amarillo, Texas
300,000 shares oi common

filed

1 an.

common

Diversified

Cormac Chemical Corp.
Jari. 22 filed 108,667 units of 108,667 shares of common

shares.
Clute Corp.
Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—To
pay additional costs of construction; and for retirement
of obligations and working
capital; -Office — c/o John

Telephone Co. (4/21)
$5,000,000 of 35-year debentures, due
April 1, 1994. Proceeds—To be used principally to repay
advances from parent, American Telephone & Telegraph
Co., and for general corporate purposes. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.; White, Weld & Co.; Eastman Dillon,
Union Securities & Co., and Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on April 21. L
V,
filed

•

N. Y.

Thursday, April 9, 1959

Diamond State

March

Ohio.

Shcpard & Co., Inc., Cleveland,

Daiton

March 25 filed

per share.

per

Cooper Tire & Rubber Co. (4/20-24)
March 27 filed $3,500,000 of senior sinking fund deben¬
tures (with warrants).
Price — At 100% of principal
amount.
Proceeds—To retire a $2,150,000 term loan,

522 shares of common stock

ehare.

1957.

stock (par one

(4/1.4)

March 16 filed $11,000,000 of first mortgage

all

pursuant to options granted in
The exercise price of the options is
share.

and certain subsidiaries

Denver, Colo.

...

(1664)

Dec.

16 filed

capital.
writer
Mich.

Inc.

200,000 shares of class A common stock.
share)
Proceeds—For working
Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot Bldg., Detroit,

Price—At par ($1.50 per

—

Volume 189

Number 5836

...

The Commercial and Financial Chronicle

^ Fireman's Fund Insurance Co.
1 filed $3,000,000 of interests

April

in the Fireman's
Fund Savings and Supplemental Retirement Plan and
50,420 shares of the Insurance company's common stock
which may be acquired pursuant to said plan.
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
unit. Proceeds—For purchase and 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,
K>t Petersburg, Fla. Underwriter—None. r

^Florida

Steel

Corp. (4/20)
$2,135,700 of convertible subordinated
debentures due May 1, 1971, to be offered for subscrip¬
tion by common stockholders at the rate of $100 of
debentures for each 50 shares of stock held on April 17;
rights to expire on or about May 4. Price—To be sup¬
plied by amendment. Proceeds—To retire existing longterm bank loans, and for additional working capital.
Underwriters—McDonald & Co., Cleveland, Ohio; and
Kidder, Peabody & Co., New York.
March

filed

Fluorspar Corp. of America
Feb. 5 (letter of 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.

Food Fair Stores, Inc.
Feb. 27 filed $21,203,200 of 20-year 4% convertible subor¬
dinated debentures due 1979 being offered initially for

subscription by
about

March

amount

stock

stockholders

common

24,

1959,

debentures

for

held; rights to expire

the

basis
25

each

record

$100

common

April 10, 1959. Price—
At par (flat). Proceeds — For general corporate
pur¬
poses, including additional working capital and future
capital expenditures. Underwriter — Eastman Dillon,
on

Union Securities & Co., New York.

if Forney Arc Welders, Inc.
(letter of notification) 10,000 shares of class A

March 25

stock

common

(par $5).

—For working

Price—$30

per

share.

^ General Motors Corp., New York
April 7 filed 1,600,000 shares of common stock to be of¬
fered pursuant to the General Motors Savings-Stock
Purchase Program for Salaried Employees in the United
States.

Proceeds

capital. Office—1830 La Porte Avenue,
Underwriter—None.

Fort Collins, Colo.

★ Forney Manufacturing Co.
(letter of notification) 20,000 shares of class A
common
stock (no par), including 4,644 shares to be

— For
general
corporate purposes. Office—New York, N. Y.
Under¬
writers — Paine, Webber, Jackson & Curtis; Stone &

Webster

Foundation Investment Corp., Atlanta, Ga.
Jan. 13 filed 231,988 shares of common stock to be of¬
fered for

subscription by stockholders; unsold

to be offered publicly. Price—$12.50 per share.
—To repay notes. ' Office—515 Candler

portion

Proceeds

Bldg., Atlanta,

Ga. Underwriter—None.
Frito Co.
March

(4/21)
200,000

filed

$2.50), of which 140,000 shares
selling stockholders and 60,000

common

are

for

the

stock

(par

account

shares for company's
account. Price—To be supplied
by amendment. Proceeds
—For working capital and general
corporate purposes.

Underwriters—White, Weld & Co., New York; and Dittmar

Co., San Antonio, Texas.

General Aniline & Film Corp., New York
Jan. 14, 1957 filed 426,988 shares of common A
stock (n#
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¬
ton

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
llay 13 at Room 654, 101 Indiana Ave., N. W., Washing
Ion 25. D. C. but bidding has been

postponed.

• General Builders
Corp., New York
Feb. 26 filed $2,131,000 of 6% subordinated
debentures,
due April 30, 1963, with detachable warrants

pur¬

chase 213,100 shares of common stock
(each $100 de¬
benture will beaccompanied
by a warrant for the
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 i>referred stock of record
April 8, 1959, the
right to subscribe to a total of $1,631,000 of the deben¬
tures with warrants.
tures with warrants

The

remaining $500,000 of deben¬
being sold to a group of pur¬
(who are also stockholders of the company)
have agreed also to purchase certain additional
are

Securities Corp.; and

pleton.
if General

Water

Co.

with warrants if subscription
exercised in at least the amount of
$500,-

Price

—

$100

per

unit.

Proceeds

—

May 11, 1959.
promis¬

To repay

notes, and the balance, if any, will be added to
working capital, to bp used in part to reimburse the
company's treasury for payments made upon the acqui¬
sory

sition of land and

working capital for such building
company may undertake. Office—2413
Third Ave., New York, N. Y.
Underwriter—None.
General Merchandising
Corp., Memphis, Tenn.
Feb. 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¬
projects

writer— Union

Tenn.

Securities
_

Investment

Co.,

Memphis,
,

one

its

* Gillette Co.
April 6 filed 100,000 shares of common stock, to be of¬
fered for sale (along with 136,200 shares covered by two
prior filings) pursuant to the terms of the company's
Employees' Stock Option Plan.
Glickman

Corp.

March 13 filed 3,357,700 shares of common stock.

Price
For properties, furniture,
fixture and leasehold improvements and other
expenses.

—$10 per share.

Proceeds

—

Office—565 Fifth Ave.,
—Bache & Co., New

New York, N. Y.
York, N. Y.

Underwriter

kets

the

new supermar¬

amount

of some $309,400, and to provide
equipment with respect thereto in the
$635,000; some $30,000 will be usod to provide
equipment and improvements for Crestwood Bakery, a
subsidiary; and the balance will be used for investments
in controlling stock in retailer-franehised
Sentry Mar¬
and

amount of

kets

and

interim

investments

sites

and

develop¬

ments

prior to resale. Office—4160 North Port Wash¬
Rd., Milwaukee-, Wis. Underwriter — Taylor,
Rogers & Tracy, Inc., Chicago, 111.

ington

Government

Employees Variable Annuity Life

Insurance Co.
Nov. 13 filed 2,500,000 shares of common stock (par
$1)
to be offered

by company viz: (1) to holders of

common

stock (par $4) of Government Employees Insurance
on the basis of one warrant per share of stock held

334,570 shares
stock

common

Co.,
(1,outstanding); (2) to holders of
$1.50) of Government Employees

are now

(par

voting

10 shares

of common stock held on or about Nov.
I*
Stockholders will have 45 days in which to exer¬
rights. Price — At. par. Proceeds —To repay

1958.

the

debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under¬
writer—None. ' V

Heliogen Products, Inc.
(letter of notification) 28,800 shares of

Oct, 22
stock

$1).
Price—$5 per share.
Proceeds—For
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.

• Health Machines & Equipment Corp.
March 25 (letter of notification)
300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
purchase equipment and machinery; and for working
capital, etc. Office—260 S. Federal Boulevard, Denver,
Colo.

Underwriter—None.

•

Hermetic Seal Corp. (4/13-17)
March 9 (letter of notification) 100,000 shares of class A
common stock (par 10
cents). Price—$3 per share. Pro¬
ceeds—For payment of the balance of owed

moneys to

creditors; to equip a plant in the Midwest area; for a
research development
laboratory and working
capital. Office—744 Broad St., Newark, N. J. Under¬
writer—Amos Treat & Co., Inc., New York.

modern

March 11

(letter of notification) 285,000 shares of com¬
stock. Price—At par ($1 per
share). Proceeds—To
existing liabilities; for additional equipment; and
working capital.
Office—East Tenth Street, P. Ou
Box 68, Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo.

mon

pay
for

Highway Trailer Industries, Inc.
24 filed 473,000
outstanding shares

Nov.

stock (par 25 cents).

1967, convertible into shares of

at $28.0374 per share. -If all these debentures
converted into common stock prior to the record
a total of
164,733 common shares would be
mon

com¬
were

date,
outstanding.
share. Proceeds—For capital and surplus.
Office—Government Employees Insurance
Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.
Price—$3

per

Gray

Drug Stores, Inc.
filed $2,313,500 of convertible debentures due
1974, being offered for subscription by common stock¬

March

holders of record March 27, 1959, on the basis of $100
of debentures for each seven shares
held; rights to ex¬

pire

April 14.
Price—At par.
Proceeds—To retire
term loan indebtedness and the balance of note issued
by the company as part of the consideration for the
on

assets of The King Drug Co.; for capital expenditures;
and the balance for

working capital. Underwriter—Mer¬
rill, Turben & Co., Inc., Cleveland, Ohio.

Hinsdale Raceway, Inc., Hinsdale, N. H.

a
track, including land, grandstand,' mutual plant
building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board and

clubhouse.

cents).
York.

(par 10

Price—To be supplied by amendment. Proeeeds
working capital. Office—15 William Street, New
Underwriter—To be supplied by amendment.

*/ Great Lakes Natural Gas Co., Inc.
Feb. 12 (letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proeeeds—
,

For

drilling wells and working capital. Office—632 W.
St., Erie, Pa. Underwriter—John G. Cravin & Co.,

Greater All

American Markets,

Inc.

(4/21-23)

—

Home-Stake Production Co.,

Tulsa, Okla.
116,667 shares of common stock (par $5).
share. Proceeds—For working capital and
general corporate purposes.
Office — 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None.
Nov.

filed

Price—$6

term bank loans made for construction of

facilities.

Feb.

filed 563,600

the basis of 200 shares for each
$1,000 note.

330 Ninth

cents).

Office—

Avenue, West, Calgary, Canada.

Growth Fund of

Feb.

filed

new

opera! ing

determined by competi¬
bidders: Halsey, Stuart & Co.

bidding. Probable
Inc.; Blyth & Co., Inc.; Lazard Freres & Co. and The
First Boston Corp. (jointly); Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co.
(jointly);
Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly). Bids—Expected to be received up
to 11 a.m. (EDT) on May 13.
t,

April 1 filed 150,000 shares of

common

stock (par $10).

Trice—To be supplied by amendment. Proceeds—To be
used for partial payment of short-term bank loans made
for construction of new operating facilities. Underwriter®
—May be Blyth & Co., Inc., Lazard Freres & Co., Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Smith, Inc., all of New York.

Imperial Growth Fund, Inc.
March 2 filed 600,000 shares of common stock. Price—At
market. Proceeds — For investment.
Office—60 Mar¬

quette Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

—

if Indiana Natural Gas Corp.
(letter of notification) 30,000 shares of
stock. Price—$6 per share.
Proceeds—For

struction and operation of natural gas distribution
tem.^ Office—715 Indiana Building,
Indianapolis,

Min¬

com-:
con¬

sys¬

Ind.

Underwriter—None.

Ltd.

shares of common stock to be of¬
exchange for $2,818,000 of 5^% convertible
sinking fund redeemable notes, series A, due July 1,1976,
on

Underwriter—To

tive

mon

fered

per

if Idaho Power Co. (5/13)
April 1 filed $15,000,000 of first mortgage bonds duo
1989. Proceeds—To be used for partial payment of short-

March 27

working
Business—Operates eight super markets. Office
—7814 East Firestone Blvd., Downey, Calif. Underwriter
—J. Barth & Co., San Francisco, Calif.
Leases

(par $1),

10,000 shares to officers and employees. Price—$10 per
shares to public; $9 to employees. Proceeds—To
selling
stockholder.
Underwriter
For public offering: Van
Alstyne, Noel & Co., New York.
Offering—Postponed
indefinitely.

capital.

Freehold

Corp.

March 9 filed 260,000 shares of common stock

of which 250,000 shares are to be publicly offered and

March 17 filed 300,000 shares of common stock. Price—
be supplied by amendment. Proceeds—For advance
rental payments, purchase of inventories and

Gridoil

Underwriter—None.

Hoffman Motors

if Idaho Power Co.

-Ir Great American Realty Corp.
March 30 filed 900,000 shares of class A stock
—For

common

Dec. 29 tiled capital trust certificates
evidencing 1,000,000 shares of capital stock, and 2,000 debenture notes.
Price—The common stock at par ($1 per
share) and the
notes in units of $500 each. Proceeds—For construction

Life Insurance Co., on the basis of 1 Vz warrants per share

(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¬

Price—At prices generally prevail¬

ing on the American Stock Exchange.
Proceeds — To
selling stockholders. Office — 250 Park Avenue, N. Y.
Underwriter—None.

of stock held

ital debentures due

common

(par

payment of

Hickerson Bros. Truck Co., Inc.

inventory and working capital for four
fixtures

—

Development Corp.
(letter of notification) 22,820 shares of non¬
convertible preference stock (par $12) to be
offered for subscription by stockholders on the basis
of one share of convertible preference stock for each
Oct.

Godfrey Co., Milwaukee, Wis.
March 23 filed 100,000 shares of common stock. Price—
To be supplied by amendment.
Proceeds—To provide

the

and

$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.
:•"/

debentures

are not

voting preferred stock

and 66,131 shares of 80-cent dividend voting
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

New York.

Subscription warrants will expire

Waterworks Corp.

(par $100)

9th

rights

Connecticut Avenue, Washington, D. C.
Advisor
Investment
Advisory
Service,
Washington, D. C. Underwriter—Investment Manage¬
ment Associates, Inc.,
Washington, D. C.

Investment

second

who

000.

Office —1825

cise

March 31 filed 16,131 shares of $5

chasers

amounts-, of

Mitchum, Jones & Tem-

1 \

Heartland

To be supplied by amendment. Proceeds

March 27

offered, in recision to purchasers which were inadver¬
tently made. Price—$15 per share. Proceeds—For work¬
ing capital. Office—1830 La Porte Avenue, Fort Collins,
Colo. Underwriter—None.

General Telephone & Electronics Corp. (4/20)
March 31 filed 800,000 shares of common stock. Price—

principal

(1665)

America, Inc.

250,000 shares of common stock (par 10
Price—At market.
Proceeds—For investment.

•

Indiana Steel

Feb.

Products Co.

filed

42,193 shares of common stock (par $1)
being offered for subscription by common stockholders
at the

rate

one

share for

each

seven

held

April 1, 1959; rights to expire on April 17, 1959.
Price—$37 per share. Proceeds—For construction, ma¬
chinery and equipment, and to provide additional funds

Continued

page

The Commercial and Financial Chronicle

(1666)

Continued

& R., Inc.; 750,000
of an option by

from page 41

for working capital and other corporate purposes. Office
405 Elm St., Valparaiso, Ind. Underwriter—Kalman &

Co., Inc., St. Paul, Minn.

Washington, D. C.
July 24 filed 600,000 shares of common slock (par one
cent). Price—$1 per share. Proceeds—To develop and
operate graphite and mica properties in Alabama. Un¬
derwriters—Dearborn & Co. and Carr-Rigdom & Co.,
both of Washington, D. C., on a best efforts basis. State¬
Industrial Minerals Corp.,

ment effective Nov.

18.

Inter-Mountain

Telephone Co.
March 5 filed 399,000 shares of voting common stock
being offered for subscription by common stockholders
of record March 20, 1959, on the basis of two new shares
for each five shares then held; rights to expire on April
10.
Price—At par ($10 per share).
Proceeds—For re¬
of

duction

Courts

short-term

notes

banks.

Underwriter-

& Co.,

Atlanta, Ga. and New York, for 219,341
balance to be offered to two principal stock¬

shares;

holders—Southern Bell Telephone & Telegraph Co. and

Chesapeake & Potomac Telephone Co. of Virginia.
International

Bank, Washington, D. C.
Dec. 29 filed $5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% pei
unit; and series D, $3,500,000, 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds — For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.

ic International Paper Co.
April 6 filed 84,405 shares of common stock to be of¬
fered to employees pursuant to the company's Incentive
Stock Option Plan for Key Employees.

ic Interstate Power Co. (5/20)
April 7 filed $6,600,000 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). Bids—
Expected to be received up to 11 a.m. (EDT) on May 20.
ic Interstate Power Co.
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.
Investment Corp. of Florida
Oct. 9 (letter of notification) 55,555 shares of commor
stock (par two cents). Price—$4.50
per share. Proceeds
—For capital account and paid-in
surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise

Boulevard, Ft

Lauderdale, Fla. Underwriter—None.
ic Investors Commercial Corp.
April 6 filed 105,000 shares of common stock. Price—To
be supplied by amendment.
holders.
Office — 180 W.

Proceeds—To selling stock¬

Randolph St., Chicago,
Underwriter—Paul C. Kimball & Co., Chicago, 111.

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.

Under¬

Itemco Inc.
Nov. 28 (letter of
notification) 200,000 shares of commor
stock (par 10
cents). Price—$1 per share. Proceeds—To

acquire machinery and equipment and additional space
for test
laboratories; and for working capital. Office—
4 Manhasset
Ave., Port Washington, L. I., N. Y. Under-,
writer
B. Fennekohl &
Co., 205 East 85th St., Nev
York, N. Y.
*
—

Keystone Custodian Funds, Inc.
March 27 filed 90,600 shares of class A common
stock,
of which 37,600 shares are to be
offered from time to
time by the Fund, pursuant to the terms of its
Em¬
ployees Stock Option Plan,
shares

will

the

remaining 53,000

be sold for the account of a
selling stock¬
Price—To be supplied
by amendment. Proceeds

holder.
—To

and

selling stockholder.

Co., New York.

Underwriter—Clark, Dodge &

ic Laguna Niguel Corp. (4/23)
—
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—$20
per unit.
Proceeds—To make
payments in connection with acquisitibn of certain
prop¬
erties, to repay bank loans, for working
capital and
other corporate purposes.
Office—621 South Spring St

son

Angeles, Calif. Underwriter—Paine, Webber, Jack¬
Curtis, New York and Los Angeles.

Laure Exploration
Co., Inc., Arnett, Okla.
Dec. 23 filed 400,000 shares of common
stock.

per

Price

share.

Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.
Lefcourt Realty Corp.
Jan. 29 filed
3,492,000 shares of common stock, of which

2,622,000
1fee

common

were
issued in
stock of Desser &

derwriter—None.

March

Employees

exchange

for

all

Garfield, Inc., and D

Stock

Oil Development Co.
(letter of notification) 75,000 shares of capital
$1).
Price—$2 per share.
Proceeds—For
working capital. Office—80 E. Maple Street, Lebanon,
* Linn County

poses.

stock

apolis, Minn.

(par

Montana

prevailing market price on the American
at time of offering. Proceeds — For
working capital. Office — Minneapolis, Minn.
Under¬
writers—Bear, Stearns & Co. and John H. Kaplan & Co.

The

Kessler & Bartlett Inc.
shares of class A stock, of which

100,230 shares are to be offered for the account of the
company and 49,770 for account of selling stockholders.
Price—To be supplied by amendment.
Proceeds—For
working capital.
Office—Syosset, Long Island, N. Y.
Underwriter
Francis I. du Pont & Co., New York.
Offering—Expected at end of April."
Lorain

Telephone Co. .■*
(letter of notification) 1,562 shares of common
(no par) to be offered for. subscription by stock¬
holders at the rate of one new share for approximately
close

business

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—
■

'"-X'.-

Co., Inc.

Offering—Indefinitely postponed

each share of "Huron stock.

Louisiana Power & Light Co. (4/14)
March 3 filed 75,000 shares of cumulative preferred stock

(par $100). Proceeds—For property improvements and
corporate purposes.
Underwriter—To be deter¬
by competitive bidding. Probable bidders: Hal¬

mined

insurance

sey, Stuart & Co. Inc.;
Inc. and Shields & Co.

White, Weld & Co., Blyth & Co.,
(jointly); Merrill Lynch, Pierce,
Fenner & Smith, Kidder, Peabody & Co. and Harriman
Ripley & Co., Inc. (jointly); Salomon Bros. & Hutzler,
Eastman Dillon, Union Securities & Co. and Equitable
Securities Corp. (jointly); The First Boston Corp. and
Glore, Forgan & Co. (jointly). Bids — Expected to be
received up to 11:30 a.m. (EST) on April 14 in Room
2033, Two Rector St., New York, N. Y.

and

ic Loral Electronics Corp. (4/20-24)
April 1 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment.. Proceeds—To in¬
crease inventories and for general
corporate purposes.
Office—825 Bronx River Ave., New York, N. Y. Under-/
writers—Kidder, Peabody & Co. and Model, Roland &
Stone, both of New York,
»/: .; J / '
'
■
'■■// \

writer—Waldron &

Del.,

and

Emporium,

penses and

2300

Phoenix,~Ariz. Underwriter—None,
cumu¬

first three months' operational expenses. ON
Blvd., Los Angeles 17, Calif, Under¬

Co.; San Francisco 4, Calif.

May 5 (letter of notification) 150,000 shares of common
cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc..
stock (par one

•

New York

Shipbuilding Corp. r
March 3 filed 621,353 shares of common stock. PriceTo be supplied by amendment. To be offered from time
to time either on the New York Stock Exchange at price

(5/4-8)-

or by public or private saleprices; Proceeds — To Merritt - Chapman &Corp., the- selling stockholder. Underwriter—None.'*

Scott

preferred

share and five common shares.
Price—$63
Proceeds—For drilling and exploration pro¬
and for working capital, and general corporate
purposes.
Office—Virginia & Truckee Bldg., Carson
City, Nev. Underwriter—J. Barth & Co., San Francisco,

unit.

Calif.

★ Maine Fidelity Life Insurance Co. (4/23)
100,000 shares of capital stock (par $1,50)
to be offered for
subscription by holders of outstanding
one

new

share for each two shares

April 22, 1959 (after giving effect to the 2-for-li
1959). Price—To be
supplied by amendment. Proceeds—To increase capital
and surplus. Office—83 Exchange
St., Portland, Maine.
on

stock split scheduled for April 22,

Underwriter—P* W. Brooks

repayment of bank loans incurred for construction pur¬
poses.
Underwriters—A. G. Becker & Co., Inc.. Merrill

Lynch, Pierce, Fenner & Smith, Inc., and Kidder, Pea¬
body & Co., all of New York.
,

Shipbuilding

filed

Oak Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of common
(par $1), Price — $3 per share. Proceeds — For
working capital.
Office—11 Flamingo Plaza, Hialeah,
Fla.
Underwriter
Henry & Associates, Inc., 11 Fla¬
mingo Plaza, Hialeah, Fla.

stock

^Office Buildings of America, Inc.
April 6 filed 91,809 shares of class A and 10,201 shares
of

class B

common

class A shares and

unit.

stock
one

Proceeds—To

offered

class B share.

available

for

units of nine

Price

—

$100 per'

investment

real'

„

(4/20)

(letter of notification) 37,500 shares of com¬
(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
stock

outstanding loans and working capi¬
tal, and to selling stockholder. Office—Gunn Highway
at Henderson
Rd., Tampa 7, Fla. Underwriter—W. W._
Schroeder & Co., New York
5, N. Y. "
,

•

Mergenthaler Linotype Co., Brooklyn, N. Y.
17 filed 116,541 shares of
capital stock, being
offered for subscription by stockholders at the rate of

March

April,

6, 1959; rights to expire on April 24 (with an oversub¬
scription privilege).
An additional 29,900 shares are
being or will be offered pursuant to the company's

syndicates and other real estate. Office—9 Clinton'
St., Newark/N. J. Underwriter—None.

Oil, Gas & Minerals, Inc.
Nov. 16 (letter oi notification) 116,000 shares of commor*
stock (par 35 cents).
Price—$1 per share.
Proceeds—
t

For development of oil and gas properties.

Office—513,
Mart, New Orleans 12, La. Under¬
writer—Assets Investment Co., Inc., New Orleans, La
International Trade

share for each four shares held of record

York

Corp.
83,334 shares of common stock, to be
offered in exchange for common stock of Higgins,
Inc.,
at the rate of one share of New York Shipbuilding com¬
mon for each 24 shares of Higgins common.
March

estate

Co., Inc., New York.

ic Maine Public Service Co. (4/27-30)
April 1 filed 50,000 shares of common stock'(par $7).Price—To be supplied by amendment.
Proceeds—For

Mary Carter Paint Co.

New

—

March 30 filed

one new

1955,
Pro¬

prevailing at time of sale

gram;

—For payment of

—

Nedow Oil Tool Co.

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 onp

mon

Office

at related

ic Magma Power Co.

•

capital and surplus.

fice—1250 Wilshire

Underwriter—None.

March

or
prior to Dec. 31,
Price—$4.44 per share.

lative voting and non-assessable common stock.; Price—
At par ($1 per share). Proceeds—For organizational ex¬

Houston, Tex..

Offices—Wilmington,

Naylor Engineering & Research Corp. ;■v>
Sept. 29 (letter-of notification) 300.000 shares of

Sept. 29 filed 350,000 shares of common stock. Price—$1
per share. Proceeds — For the acquisition of properties
under option and for various geological expends, test
drilling, purchase of equipment, and other similar pur-

per

increase

North Central Ave.,

LuHoc Mining Corp.

ooses.

policies issued
employees.

certain

ceeds—To

National Life & Casualty Insurance Co.
March 25 filed 250,000 shares of common capital stock
to be offered to holders of certain of
company's life

other

ic National Gypsum Co.
/
a
April 6 filed 1/014,300 shares of common stock, to be of-/
fered in exchange'for all but not less than 98% of the
outstanding comrhon shares of Huron Portland Cement
Co. in the ratio of 7/10 of a share of National stock for

March

of common stock (no par).
be offered only to bona fide residents
Price—To be related to the current market

will

(4/20-24)
common stock, of which
70,000 shares are being sold by certain selling stock¬
holders and 60,000 shares by company
(10,000 shares
fo employees and 50,000 shares to
public). Price—To be
supplied by amendment. Proceeds—For working capi-.
tal.
Office—East Aurora (Buffalo), N. Y. Underwriters
—Kidder, Peabody & Co., New York; and Blunt Ellis
& Simmons* Chicago, 111.
yyir'X:V\'X.\.
-

Feb. 11

the

stock

Moog Seryocontrols, Inc.

stock

Co.

March 30 filed 130,000 shares

—

None.

Minne¬

★ Montgomery Ward & Co., Inc.
March 31 filed 400,000 shares of common
.stock/ which/
have been reserved lor purposes of the
company's Re-;
stricted Stock Option PI a n r • •"'
:XX'^:''^'l--

March 25 filed 150,000

held

Bldg.,

on the New York Stock Exchange.
Proceeds—To-,
gether with other funds, to carry on the company's con¬
struction program
through ' 1959.
Manager-Dealers—■*
Smith, Barney & Co., Kidder. Peabody & Co. and Blyth

& Ives Co.

Bank

price

(4/15-16)
shares of common stock (par 50
cents).
Price—$3.50 per share.
Proceeds—For addi¬
tional working capital to be used principally in pro¬
ducing The American Oxford Encyclopedia.
Under¬
writer—Shields & Co., New York.

75.1729

Power

3f Montana.

March 18 filed 250,000

each

Northwestern

Underwriter—None.

July 1 filed 100,000 shares

Exchange

Lockwood,

Office—1404

common stock.
Price—$1
share. Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.

18,984 shares were sold to the underwriters in February,

(J, J.)

share.

per

1959. Price—At

Little

Price—$45

Dec. 23 filed

Corp. of America
March 31 filed 50,484 shares of common stock, of which

Stock

Plan.

Millsap Oil & Gas Co.
602,786 shares of

Underwriter—None. V

Ore.

Option

Midwest Technical Development Corp.
17 filed 400,000 shares of common stock. Price—
$3.75 per share. Proceeds—For general corporate pur¬

March 25

held

filed

2,719,950 shares of class A stock and
300,000 shares of class B stock, of which a maximum oi
2,457,450 shares of class A stock are to be offered in ex¬
change for units in certain limited partnerships. Com¬
pany sold on March 14 a total of 250,000 class A shares
at $10 per
share, and on March 4 a total of 300,000 class
B shares at $1
per share to certain persons; the re¬
maining 12,500 class A shares are to be issued to
Cinaba, Ltd. Office—521 Fifth Avenue, New York, N. Y
Underwriter—None.

Los

Proceeds—To be added to the general funds of the com¬
pany and be used for corporate purposes.
Underwriter
—None.

stock at the rate of

Kratter Corp., New York
March

Thursday. April 9, 1959

shares will be used for the exercise
the company to purchase from Big
Mound Trail Corp. some 3,784.9 acres of land on oi
before May 1, 1959; and the remaining 120,000 shares are
to be sold for the account of a selling stockholder. Un-

Lithium

...

ic Oil, Gas & Minerals, Inc.
April 2 filed-260,000 shares of.

X*
stock

(par 35Price—-$2 per share. Proceeds—To retire bank;
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, La.
Underwriter — t
common

cents.

Assets Investment

O. K.
Dec.

filed

of 3^4%

Co., Inc., New Orleans, La.

Rubber Welders,

60,600 shares of

common

debentures maturing on

$692,000 of 6% debentures

„

Inc."

stock, $43,333.33'

before May 6, 1965 *maturing on or before Dec '
or

31, 1974 and $123,000 of 7% debentures due on or before'
May 6, 1965
The company proposes to make a public-'
,

offering of 25,000

shares of common stock at $10 pei
remaining shares and the debentures are ;
subject to an exchange offer between this corporation.
O. K. Rubber, Inc., and O. K. Ko-op Rubber Welding >
System, on an alternative basis. Proceeds—Of the public
share.

The

Number 5836

Volume 189

...

The Commercial and Financial Chronicle

(1667)

will

offering,

used

Grande

Rio

551

service part

and/or to
None.

for additional working capital
of the company's debt. Office—

Ave.,

Littleton,

Colo.

★ Precon Electronics Corp. (4/27-30)
April 6 filed 175,000 shares of common stock

Underwriter—

Fund, Inc...
1
Dec. 5 filed 100,000 shares of capital stock.
Prioe—At
market (about $10 per share).'- Proceeds—For'.-invest¬
ment.
Office—25 Broad St., New York. Underwriter—
Oppenheimer & Co., New York.

Producers Fire & Casualty
Co., Mesa, Ariz.
31 filed 400,000 shares of common
stock to

^ Original New Life Sharpening Corp.
April 1 (letter of notification) 30,000 shares of common
stock (no par). Price—$10 per share.
Proceeds—To pay
current liabilities; for construction of a new building and
working capital. Business—Servicing scalpel blades for
hospitals and doctors.
Office — 200 North Broadway,
South

Amboy, N. J.

Underwriter—None.*

March

agents

—None.

general

...

class

common/stock

evidenced/by

voting

record

April 14, 1959. Price—$4.25 per share. 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—None, but

Newhard, Cook and Co. and Yates, Heitner & Woods,
both of St. Louis, Mo., offered to purchase the unsub-;
scribed shares.

/"//\< •/-'

■:

•A Paddock of California
March

filed

\/;

er— Norte;-

;

•;

•

Paramount Mutual

Underwriter—Paramount Mutual Fund Manage¬
Co.

ment

.rl-/.V-:r/'

it Pearson

(letter of notification^ 175,00p -shares of com¬
stock--(par 25.'.-cents)£ Price—$1 per share/ Proceeds
repay short-term loan and lor working capital.

Office—1

Constitution

St., Bristol, R. I. Underwriter—
R. A. Holrnan & Co., Inc., New York, N. Y.
^
May

Price—At

market?

Proceeds—For

investment.

writer—Investors Investments Corp.,
•

Under-

Pasadena, Calif.

Penn-Texas

Corp., New York City (4/22)
1,500,000 shares of common. stock to be
offered for subscription by. common stockholders *at rate

March 31

filed

of one new share, for each four shares held on
orr about
April 21, 1959 (with/ a 14-day standby).., - Price—To be
supplied* by, amendment. Proceeds
To purchase addi¬
—

tional

stock of Fairbanks, Morse & Co. and for repay¬
ment of loanS.
Underwriter—Bear, Stearns & Co.. New

'■>

York.

Pennsylvania Power Co. ■■■*;'
Aug. 1 filed $8,000,000 of first mortgage.bonds due 1989.
Proceeds—To redeem a like amount of 5% first morteaee

bonds

due

1987

Underwriter—To

determined

by competitive bidding. Probable bidders: Halsey, Stuan
& Co Inc.; Kidder,
Peabody & Co.; White Weld & Co.
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman Brothers,

Eastman

Dillon, Union Securities A
Co,, Salomon Bros. & Hutzler and Ladenburg, Thalmanr
& Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith
and Dean Witter & Co.
(jointly). Bids — Tentatively
had been expected to be received
up to 11 a.m. (EDT)
en
Aug. 27 but company on Aug. 22 £eci&d to defer
sale
on

pending improvement in market conditions. SEC
Feb. 25, 1959 extended to June 16, 1959
period within
-

which

Purepac Corp.,

company

may

consummate

cents).
and

Feb. 26
stock

(letter of notification)

to be

offered

common

for

Office—332

Atando

Underwriter—None. *'•/"■

;/r

Ave., Charlotte, N. C.
.//••;,.,
; *•

★ Permanent Filter Corp., Los Angeles, Calif.
April 7 filed 140,000 shares of common stock, of which
120,000 shares
pany and

are

be offered for account of the

20,000 shares for

account of

com¬

selling stockholder.

Price—To be supplied by amendment. Proceeds — For
land and buildings and
working capital. Underwriter—
William B. Staats &

Co., Los Angeles, Calif.

Peruvian Oils & Minerals, Ltd.
March 12 filed
400,000 shares of capital
.

the

Office

Canada.

—

filed

Proceeds—To selling stock¬
Richmond Street West, Toronto,

Underwriter—None.

Philco Corp.

March

Price—

prevailing market.

holders.

Ont.,

stock.

(4/16)

$20,000,000 of convertible subordinated

debentures, due April 15, 1984.

Price—To be Supplied
by amendment. Proceeds—For capital expenditures and
general corporate purposes.
Underwriter—Smith, Bar¬
ney & Co., New Xork.

general

derwriter

—

New York 4,

per

(par five
Proceeds—To repay loans

share.

corporate

purposes.

Business—Manu¬

packager of proprietary drug items.
Un¬
Bruce & Co. Inc., 26
Broadway,

Richard
N. Y.

Raindor Gold
Jan. 28 (letter of
stock
up

common

per share. Proceeds—To prove
and camp construction. Office—At

Suite 322, 200 Bay

St., Toronto, Ont., Canada, and c/o T.
Arnold, Wilson Circle, Rumson, N. J. Underwriter—
Sano & Co., New
York, N.Y.
Rassco

Financial

Corp.

filed $1,000,000 of 15-year 6% series A
sinkini
Tmd debentures due 1973, to be offered in denomination!
>f S500 and $1,000.
Price—At par. Proceeds—For work»une

capital and general corporate purposes. Underwritei
Israel Corp., New York, on a "best efforts'

-Rassgo
basis.

/•

'■/

..'C

;

■

Corp.
March 30 filed $1,500,000 of 6% convertible debentures
due 1969, to be offered for
subscription by common
debentures
To

che

rate

each

300

for

$100

common

principal
shares

amount

held.

Price—

supplied by amendmeht. Proceeds—To pay debt
development of present properties and acquisi¬
tion and development of additional oil and
gas proper¬
ties.
Underwriter—Emanuel Deetjen & Co., New York.

and for

Alexandria, Va.

150,000 shares of common
stock (par one cent). Price—$2
per share. Proceeds—To
purchase new equipment; for payment of chattel mort¬
gage and loans and for general
117 Stanley

working capital. Office—
Ave;, Yonkers, N. Y. Underwriter—Charles
Co., New York, N. Y.

Republic Foil Inc.
March

held

one

new

for

each

three

about April 20,

1959; rights to expire on or
about May 4. Price—To be supplied by amendment.
Proceeds—For property and equipment, to retire bank
loans, and for working capital. Office—55 Triangle St„
Danbury, Conn.; Underwriter—Laird & Co., Corp., Wil¬
mington, Del.-

Investing Fund of America, Inc.
200,000 shares of capital stock. Price—At
Proceeds—For investment
Office—Englewood,
Underwriter—First Mutual Securities of America,

filed

market.
N. J.
Inc.
:

...

Richwell

Petroleum

Ltd., Alberta, Canada
(par $1)
stock, 1,174,716 shares are to be sold on behalf oi
the company and 824,000 shares for the account of cer¬
tain selling stockholders. The
company proposes to offej
he 1,174,716 shares for subscription by its shareholder*
iune 26 filed 1,998,716 shares of common stock

Of this

the rate of

(with

one

new

share for each three shares held

oversubscription privilege). The subscriptior
oeriod will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment
an

Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to workinf
capital. Underwriter — Pacific Securities Ltd., Van¬
couver,

Canada.

Roanoke
March

Gas

Co.

(letter of. notification) 17,732 shares of com¬
mon
stock (par $5) to be offered for subscription by
common stockholders Ion the basis of one share for each
seven

rights
share.

shares held

expire

(with an oversubscription privilege);
May 15, 1959.
Price—$16.75 per
repay short-term bank loan and

Proceeds—To

—

For

common

stock.

investments

Price—$1

and

Real estate investments.

working
Office

—

Underwriter—None.

Regis Paper Co.

March 27 filed 58,000 shares of common stock (par $5>
to be offered in exchange for
outstanding common stock
of

Cupples-Hesse Corp.

the basis of .644 of

of St. Regis common for each share of
St. Regis will declare the

Cupples common.
exchange offer effective if
100% of the outstanding shares of Cupples stock is de¬
posited in exchange, and may elect to do so if a lesser
percent, but not less than 80%, is deposited.
f
Santa's

Village, Skyforest, Calif.

March 27 filed $800,000 of 6% convertible subordinated
sinking fund debentures due 1974. Price—At 100% of

principal amount. Proceeds
Dundee
and

Village (a

completion of East
park near Chicago);
other corporate purposes*

working capital and
Underwriter—None.

Schjeldahl
March

(G. T.)
filed 42,500

For

—

new amusement

for

v'1

Co.

common

stock,

which

to be offered and sold first to present stockholder*
at the rate of one new share for each eight shares held
are

April 1, 1959. Price—$10 per share. Proceed*—For
plant facilities, for purchase of equipment,
working capital and other corporate purposes. Office—
on

increased

202 South Division St.,
Northfield, Minn.
—Craig-Hallum, Inc., Minneapolis, Minn.

Underwriter
t,

Scranton Spring Brook Water Service Co.

April 1, 1984 with common stock warrants to purchase
80,000 shares of common stocks being offered in units of
80,000 shares of common stock) being offered in units of

$200 of debentures and warrants for the purchase of two
shares of stock for subscription by common stockholder*
at the

rate of

one

unit for each 25 shares of stock held

March 30,

1959; rights to expire April 15. Price—$20Q
per unit. Proceeds—To repay bank loans.
Underwriter
—Allen & Co., New York.

Plywood & Lumber Corp.

March

27 filed

share.

(5/15)

150,000 shares of common stock. Price—
Proceeds—For expansion of present prod¬
uct lines and acquisition of new related lines. Office—
per

17
Bridge St., Watertown,
Morgan & Co., New York.

Service Lif*

Mass.

Underwriter—Peter

Insurance Co.

Sept. 26 (letter of notification) 3,567 shares of common
stock (par $1). Price—$18.75 per share. Proceeds—To
go to a selling stockholder* Office—400 W. Vickery Blvd.,
Fort

Worth, Tex. Underwriter—Kay & Co., Inc., Horn-

ton, Tex.
★ Servonics,
March 25
mon

Inc.'■'4 1 *>,'•'
(letter of notification) 133,000 shares of

....?

.k-

com-;

stock

(par $1). Price—$1.50 per share. Proceeds—
general corporate purposes. Office—822 N. Henry,
St., Alexandria, Va. Underwriter—Kidder, Peabody
Co., New York, N. Y.
Shares in American lndustryy Inc.
- f
12 filed 50,000 shares of common stock. Price—At
market. Proceeds—For investment. Office — 1033-30ttl
Dec.

St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment

Fund

Management

Corp.

Former

Name—

Shares in America, Inc.
Hotel

Co.

Aug. 19 (letter of notification) $250,000 of 6% convertible:
debentures due Sept. 15, 1963 to be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—*
At par. Pro'ceeds—For working capital. Office — 3171'
North Sheridan Rd., Chicago 14, 111. Underwriter—None.

it Silver Creek Precision Corp.
30 filed 1,550,000 shares of common stock (par
cents), of which 200,000 shares are to be offered for^
the account of the company, and 1,350,000 shares for
account of selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital. Office—
March
10

70,196 shares of common stock, to be
subscription by holders of outstanding shares

the basis of

upon

(4/20)

filed

offered for

—

Sheridan-Belmont

★ Reon Resistor Corp.
April 2 (letter of notification)

Plohn &

Business

For

Reiter-Foster Oil

stockholders

Investment Corp.

475,000 shares of
Proceeds

Seaboard

notification) 290,000 shares

and for road

Robbins

share.

capital.

_■

Mings, Ltd.

(par $1). Price—$1

ore

Feb.

subscription by, stockholders on
a pro rata
basis.,. Rights expire in 15 days. Price—At par
($10 per share). Proceeds—For accounts receivable and

inventories.

York

Research

/ '
28,250 shares of

Price—$3

for

facturers and

financing.

New

March 31 filed 260,000 shares of common stock

•:

Perfecting Service Co*

and

by competitive bidding. Probable
Halsey, Stuart &Z.Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc. and Smith, Barney & Co.
(joint¬
ly ); Harriman Ripley & Co. Inc., Eastman
Dillon, Union
Securities & Co., Merrill
Lynch, Pierce, Fenner & Smith
Inc. and Dean Witter & Co.
(jointly); Lehman Brothers,
Kidder, Peabody & Co. and White, Weld & Co.
(jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on
April 28.

Peckman Plan

Fund, Inc., Pasadena, Calif.
19 filed 20,000 shares of common sto.ck (par $1)

expansion

bidders:

capital.

Public Service Co. of Colorado
(4/28)
March 26 filed $20,000,000 of first
mortgage bonds due
1989. Proceeds—-For construction
program. Underwriter
—To be determined

March 30
mon

—To

per

Fund, Inc.:;'; ';
Jan. 2 filed 300,000 shares of capital/stock. Price—Mini-«
mum purchase of shares is
$2,500. Proceeds—For invest¬
ment. Office—404 North Roxbury
Drive, Beverly Hill*
Calif.

Casualty Co.

—

★

outstanding shares-. of common
stock (par SI) to be offered "only tc stockholders and
directors of The Refinite Corp. and will not.be offered
to the general public." Price—$3 per share/, Proceeds—
To selling stockholders, The Refinite Corp. Office—8400
Santa Monica Boulevard, Los Angeles, Calif. Underwrit¬

working

working capital.
Office—1108
16th Street, N.W.,
Washington 6, D. C. UnderwriterJohn C. Kahn
Co., Washington, D. C.

51,847

Fire

Enterprises, Inc.'
(letter of notification) 20Q,000 shares of commoD
(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

and/or

Producers

Proceeds—For

Prudential

Ozark Air

trust certificate, one share of general common stock'for
each 20 shares of class A and class B common stock of

Routh

Jan. 29 filed

Jan. 15

;

Lines, Inc. (4/14)
(letter of notification) 59,825 shares of gen¬
eral common stock (par $1) to be offered for
subscrip¬
tion by holders of class A and class B common stock

brokers

Price—$5 per share.
Underwriter—None.

;

stock

March

and

installation and construction of additional maina for
the purpose of extending distribution facilities.
Office—
123 Church
Avenue, Roanoke, Va. Underwriter—None.

St.
be

offered for subscription
by holders of stock purchase
rights acquired in connection with life insurance
policies
issued by Dependable Life Insurance Co.
and to certain

W Oxford. Loan Co.
March 23 (letter of notification) $250,000 of 7%% re¬
newable debentures payable upon demand April
1, 1964
and payable without demand April
1, 1969. Price—At
principal amount. Proceeds—For working capital. Office
—2233 N; Broad Street,
Philadelphia, Pa. Underwriter
•.

—

■

for

(par

cents). Price — $5 per share. Proceeds
For working
capital; to reimburse the predecessor for certain devel¬
opment expenses; for inventories and work in
process:
and other general
corporate purposes.
Office—120 E.
41st St., New
York, N. Y. Underwriters—Charles Plohn
& Co. and Netherlands
Securities Co., Inc., both of New
York, N. Y.

Oppenheimer

Central Ave. and Mechanic

St., Silver Creek, N. Y. Un-*

derwriter—Maltz, Greenwald & Co., New York.
SIMCA Socieie

Anonym*, of Franc* (4/13)
shares of capital stock, par
(U. S. $10.12) per share, andequivalent 2,000,000 American shares representing such.
1,000,000 capital shares (two American shares represents
March

filed

1,000,000

value 5,000 French francs

one

capital

share).

The

to offer
1959, and
capital shares in the United States, it*territories and possessions, the right to subcribe forone additional American Share for each American
Share,
held, or one additional Capital Share for each Capital
Share held (with an additional subscription privilege)
Price—To be supplied by amendment. Proceeds—To be
added to the general funds of the company and usedr
for general corporate purposes.
Underwriter—None.
;
holders

its American

holders

its

company proposes
shares on April 13,

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
ment. Undei writer—Sano &
Co., New York.

equip¬

it Southern Italy Development Fund (4/22)
April 3 filed $30,000,000 of guaranteed external loan
bonds (guaranteed as to payment of principal and in-:
terest by the Republic of Italy). This will include $5,-..
000,000 of four-year bonds due May 1, 1963; $5,000,000
of five-year bonds due May 1, 1964; and $20,000,000 of
15-year sinking fund bonds due May 1, 1974. Price—To
be supplied by amendment. Proceeds—For public works,
and improvement projects. Underwriter—Morgan Stan^-;
ley & Co., New York.

Continued

page

The Commercial and Financial Chronicle

(1668)

Thermo

from page 43

Continued

it Southern Nevada Power Co. (5/11)
Anril 6 filed $5,500,000 of first mortgage bonds, series D,
due 1989. Proceeds—Together with other funds, will be
used to repay

Western Wood Fiber

Plastics Corp.

March 26 filed

temporary bank loans, and

to refund the

slightly less than $4,000,000 of series "C" 5.%% mortgage
bonds due 1986.
Underwriter—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.: Horn blower & Weeks and William R. Staats
Co.
(jointly); White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Smith Inc.
Bids—Expected to be re¬
ceived up to 9 a.m. (PST) on or about May 11 in the
offices of O'Melveny & Myers, Room 900, 433 South

Spring Street, Los Angeles 13, Calif.

468,500 shares of common stock. Priee—
At par ($1. per share). Proceeds—For purchase of neces¬
sary capital equipment and to increase working capital.
Office—1626 Hertford Rd., Charlotte, N. C. Underwriter
—Interstate Securities Corp., Charlotte, N. C.

Mangum, Okla.
March 20 (letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per share). Proceeds—
For development of oil properties.
Underwriter—First
Investment Planning Co., Washington, D. C.
United

Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Prite
$10 per share. Proceeds — For acquisition ol
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, bjlease or purchase. Office — Wilmington, Del. Under*
writer—None.
Myrl L. McKee of Portland, Ore., ii
—

A Southern Nevada Power Co. (4/28)
April 6 filed 75,000 shares of cumulative preferred stock
(par $20). Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, will be used to repay
temporary bank loans. Underwriter—White. Weld & Co.,

President.

New York.
United Improvement &

Southern

Union

Gas

Co.

(4/10)

offered for subscription by

cecond preferred stock to be

stockholders of record April 10, 1959, on the
basis of one share of preferred for each five common

common

rights to expire on May 1. Price—At par
($25 per share). Proceeds—To repay bank loans and
for construction program.
Underwriters—Snow, Swee¬
ney & Co., Inc., and A. C. Allyn & Co., Inc., both of
chares held;

New York.
'

•••':

•

it Spear & Co.
March

Investment Corp.
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 &
Title Co. on the basis of one share of United for each
March

March 19 filed 442,731 shares of cumulative convertible

filed

180,000 outstanding shares of common
cents) to be offered from time to time on
the American Stock Exchange.
Price—Related to the
then current market price on said Exchange. Proceeds—
To selling stockholders.
Office—22 West 34th Street,
New York, N. Y.
Underwriter—None.

ctock (par 10

Arenas
(Delaware)
Inc.
Nov. 18 filed $2,000,000 of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF
Pin spotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to expand two present establishments by increasing
the number of alley beds by eight at Yorktown Heights
and by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter—
Sports

None.

filed

of Lawyers before its recent one-for-tcn
split, or 2% shares of United for each share
of Lawyers after such split. Lawyers' stockholders may

four

reserve

round

their

out

allocation

Sports

Arenas

(Delaware)

Inc.

(par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—
None.
.

: /i':/:.

^ Standard Packaging Corp.
April 1 filed 43,067 outstanding shares of common stock
and 28,834 outstanding shares of $1.20 convertible pre¬
ferred stock (par $20) to be offered from time to time
on the New York Stock Exchange or off the Exchange.
Price—Related to the then current market price on said
Exchange. Proceeds—To Estate of D. Samuel Gottesman,
deceased.

Underwriter—None.

it Sterling Television Co., Inc.
(letter of notification) 200,000 shares of Class
A stock (par 25 cents). Price—$1 pe* share. Proceeds—
Eor general corporate purposes, and to acquire television
film series for distribution. Office—6 East 39th St., New
York 16, N. Y. Underwriter—R. A. Holman & Co., Inc.,
New York 5, N. Y.
March 31

Strategic Minerals Corp. of Amerfca, Dallas, Tex.
March 31 £iled $2,000,000 of first lien mnrtgage6% bond*
end 975,000 shares of common stock (par 10 cents). Priee
—For

bonds, 95% of principal amount; and for stock $1
> share.
Proceeds—To erect and operate one or more
jmical processing plants using the Bruce - Williams
rocess to beneficiate manganese ores.
UnderwriterSouthwest Shares, Inc., Austin, Texas.
Super-Sol Ltd.
March 25 filed 250,000 shares of common stock. Price—
At par (19,800 Israeli pounds—equivalent to $11
per
chare in U. S. funds), payable up to 90% in State of
Israel Independence Issue and Development Issue
Bonds,
and the balance in cash. Proceeds—For expansion pro¬
gram.
Office — 79 Ben Yehuda St., Tel Aviv, Israel.
Underwriter—American Israel Basic Economy Co., New

York, N. Y.
Texas

Instruments, Inc., Dallas, Texas
11 filed 691,851 shares of common stock
(par $1)
737,974 shares of 4% cumulative preferred stock,
series 1959 ($25 par—convertible on or
prior to May 1,
1969), to be offered in exchange for common stock of
Metals & Controls Corp. "in the basis of
three-quarters of

Feb.
end

share of Texas

trols

common

stock for each Metals & Con¬

common

share, or, if the holder elects, for eightpreferred share and four-tenths of a common
share. Underwriter—None. Statement effective March 4.
tenths of

TCxfel

Petroleum

Corp.

March 19 filed 550,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—For
repayment of the company's 5% notes held by an Amer¬
ican bank, and the balance will be added to its

general
fimds and will be used in connection with its various
operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain prop¬
erties, and for the purchase of warehouse inventories.

Office—Republic

National Bank Bldg., Dallas, Texas.
Underwriters—Bache & Co. and Allen &
Co., both of
New York. Offering—Date indefinite.

the

full

purchasing not more than % of a share at $1.25 for each
V\ share needed. In addition, a stockholder who accepts
United's offer will have privileges to subscribe to 242,299 additional shares at

basis.

$5 per 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., Browarft Engineering Co., and
Margate Construction Co., certain outstanding debt ob¬
ligations of Margate Homes, Inc., and $62/500 in cash.
Proceeds—For working capital and general corporate
purposes.
Office—25 West 43rd St., New York, N. Y.
Underwriter—Allen & Co., New York, for 242,299 shares
of

common

stock.

United States
Nov. 26 filed

708,750 outstanding shares of

stock.
Price—At market. Proceeds
To selling stockholders.
Office—Tiffin, Ohio. Underwriter—None.
common

—

United Tourist Enterprises, Inc.
Jan. 28 filed 4,500,000

shares of class A common stock
cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western Village"
(par

Cy.
(par $10)

40,000 shares of preferred stock (par $25). Price —
par.- Proceeds—For construction and equipment of
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif. Underwriter—
At

it Westinghouse Electric Corp.
April 3 filed 400,000 shares of common stock, to be of¬
fered under the company's "Employee Stock
Plan", t°
employees of Westinghouse and eight of its subsidiaries.
In

separate

statement

the

filed--1,000,000

company

stock, to be offered under its "Re¬
stricted Stock Option Plans" to certain officers and other
executive employees of Westinghouse and its subsid¬
iaries.
'■■■v'-.
•■'.'■■V
/"■' •'
common

★ Wheeling Steel Corp.
}
$3,000,000 of participations in the com¬
pany's Thrift Plan, together with 50,000 shares of com¬
mon stock which may be
acquired pursuant thereto.
March 30 filed

Wilmington Country Club, Wilmington, Del.
$500,008 of debentures due 1991 (non in¬
bearing) and 808 shares. ol common, stock (par
$25) to be offered to members of this club .and. of
Concord Ltd. Price—$375 per common share and $1,900
pejr debenture.
Proceeds — To develop property and
Oct. 27. filed

terest

build certain facilities.

Underwriter—None.

Wisconsin Power & Light Co. (4/15)
March 9 filed $14,000,000 of first mortgage bouds, series

J, due March 1, 1989. Proceeds—To pay part of the cost
of property additions and improvements. Underwriter—
To be determined by
competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Robert W. Baird & Co. (jointly); Equitable Securi¬
ties Corp. and Eastman Dillon, Union Securities & Co.
(jointly); White, Weld & Co., Kidder, Peabody & Co.
and Salomon Bros. & Hutzler

(jointly); The First Boston
Corp.; Blyth & Co., Inc. and Lehman Brothers (jointly).
Bids—Expected to be received up to 10:30 a.m. (CST) on
April 15.
Wometco

Glass & Chemical Corp.

1959

and

and for construction of

Nov. 18 filed 461,950 shares of common stock

Thursday, April 9,

March 5 filed 100,000 shares of common stock

None.

Corp.,

Petroleum & Development

Transcon

...

Enterprises, Inc.

(4/20-24)

March 27 filed

325,000 shares of class A common stock,
shares are to be offered to public and
35,000 shares to officers and employees of the company.
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Business—Operates motion picture
theatres, and television and radio stations. Office—306
of which 290,000

North Miami

Ave., Miami, Fla. Underwriter—Lee Higginson Corp., New York.
:
.

Grand Estes Hotel and Con¬

Wyoming Corp.

vention Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer County, Colo.

Nov. 17 filed 1,449,307 shares of common stock. Of thesa
shares 1,199,307 are subject to partially completed sub¬

Office

scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of: one new
share for each 2.33 shares held on that date; Price—$4
per share. Proceeds—$300,000 will be used for payments
on contract to purchase shares of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire-insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,008 for additional, capital: contribu¬
tion to Great Plains Development Co.; and $300,000. as
an additional capital contribution to GreatPlainsMortgage Co. Office—319 E. "A" St., Casper, Wyo. Under¬

—

330

South 39th Street, Boulder, Colo. Under¬

writer—Mid-West Securities Corp.,

Littleton, Colo.

Uranium Corp. of America, Portland, Or*.
April 30,1957 tiled 1,250,000 shares of common stock (pai
16 cents). Price—To be suDDlied by amendment (ex¬
pected to be $1 per share).; Proceeds—For exploration
purposes.
Underwriter—To be naifted by amendment
Graham Albert Griswold of Portland, Ore., is Pres¬
ident.
Utah Mlnarals Co.

April 11 (letter of notification) 900,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—305 Main St., Park City
Utah. Underwriter—Walter Sondrup & Co., Salt Laks
City.; Utah;
•"<
:
• •
mon

Utah Oil Co. of New York, Inc.
May 6 (letter, of notification) 300,000 shares of capital
stock. Price
At par ($1 per share). Proceeds-— For:

writer—None.

Bank of

—

development of Oil and: gas: lands. Office—574. Jefferson
Ave^ Rochester 11, N. Y„ Underwriter—Frank P. Hunt
St Co., Inc., Rochester, N. Y.
Vfctorae* Instrument Co.
March 4 filed 248,394 shares of capital stock (par $1)
to be offered for subscription by holders of common
stock

and

each four

at the rate of new share for
shares held and eight shares for each

$100 of debentures held (with an oversubscription privi¬
lege). The record date will be the fourth business day
following the effective date of the registration state¬
ment and the subscription period will be approximately
20 days. Price—To be supplied by amendment. Proceeds
—For working capital.
Underwriter—None.

it Washington Gas Light Co. (4/27)
April 7 filed 100,386 shares of convertible preferred stock
to be offered for subscription by common stockholders
of record April 27, 1959 at the rate of one new share
for each 14 common shares held; rights to expire on
May 12, 1959. Price — To be supplied by amendment.
Proceeds
For construction program.
Underwriters—
The First Boston Corp., New York; and Johnston, Lemon
& Co., Washington, D. C.
—

^-Washington National Insurance Co.
April 2 filed a maximum of $1,100,000 of participations
or memberships in The Savings and Profit
Sharing Pen¬
sion Fund of the company's employees, to be offered to
not more than 500 eligible employees.
• Western

Massachusetts Companies

March 13 filed 177,626 shares of common stock (par 50

cents), of which 161,626 shares

are being, offered for
subscription by common stockholders of record April 3,
1959, on the basis of one new share for each 15 shares
then held; rights to expire on April 21.
Employees are
being offered the privilege of subscribing for 16,000
shares up to 3:30 p.m. (EST) on April 16. Price—$25
per share.
Proceeds — To be loaned to a subsidiary,
Western Massachusetts Electric Co., which will be used
to reduce its short-term bank
borrowings, and for its

construction

program.

Underwriters—The First Boston

Corp. and White, Weld & Co., both of New York.

Commerce, Washington, D* C»~ ( 5/29)

Feb, 26 stockholders of the Bank approved

the sale ot

2,000 shares of capital stock (par $100) to holders of
record. May 29, 1959, on the basis of one new- share for
each three shares held; rights to expire on: June 30.
Price—$150 per share. Proceeds—To increase capital
and surplus.
Central Illinois Light Co.
31 the company filed

debentures,
common

■

March

(5/12)
an application with the

Illinois Commerce Commission for authority to issue
$10,038,700 convertible debentures due 1974, to be offered
to common stockholders of record on or about May 12
on the basis of $100 principal amount of debentures for
each 22 of

common

held.

Proceeds

—

For construction

Underwriter—Union Securities Co. (now East¬
man Dillon, Union Securities & Col)
handled previous
equity financing. Registration—Expected the latter part
of April.
*
t
program.

Consolidated Edison Co. of N. Y. Inc.
March 9 it
and sell

was

(5/26)

reported that the company plans to issue

$50,000,000 to $60,000,000 of first refunding mort¬

gage bonds. Proceeds—For additions, improvements, etc.
Underwriter—To be determined by competitive bidding.

bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected
to be received up to 11 a.m. (EDT) on May 26.
Probable

Consolidated Natural

Gas Co.

(5/21)

March 18 the directors approved a plan to offer stock¬
holders on or about Mhy 21 the right to subscribe for

shales

of capital stock on the basis
10 shares held; rights to
exptre on or about June 10. Price—To be below the
market price prevailing at the time of the offering.

821,256 additional
of

one

new

Proceeds

—

for

each

For construction program.

None.

Underwriter—
;

Consolidated Natural Gas Co.
March 18, James Comerford, President, announced that,
in addition to the proposed stock offering to stockholders,
the company plans this year to issue and sell publicly
$20,000,000 of debentures. Proceeds—For construction
program. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey,. Stuart & Co.

Volume 189

Number 5836

...

The Commercial and Financial Chronicle v

(1669)
Inc.; Morgan Stanley & Co. and The First Boston Corp.
(jointly); White, Weld & Co. and Paine, Webber, Jackton & Curtis (jointly).
/ Di-Noc Chemical

March 31 it

sale

and

Registration—Planned for Aug.
oe received on
Sept. 10.

(4/28)

Jersey Central Power

reported that the company, plans issue
$947,200 5V2%
convertible subordinated

was

debentures

Arts, Inc.

Equitable Securities Corp, and Eastman
Dillon, Union
Securities & Co/ (jointly); Harriman
Ripley & Co. Inc.

Feb. 10 it

1971, to be offered for subscription by
common stockholders of record about
April 28, 1959, on
the basis of $20 principal amount of debentures for each
six

shares of stock held; rights to expire on May 13.
Underwriter—Blair & Co., Inc., New York. Registration

April 3.

Duke Power Co.

and sell

For

;

■■

Paso

Feb. 9 it

Electric

Co.

■

(5/19)

reported that the company is planning the
aale of $3*500,000 of first mortgage bonds due 1989. Pro¬
ceeds—For construction program. Underwriter—To be

reported that the company plans to issue

•

determined

El HPaso

Dec.

Electric

Webster Securities

El Paso Natural

•

March 4 it

vote-on

Gas

increasing the

—.

—

gram.

(Calif.)

Myron A. Lomasney & Co., New York.
Via Regulation "A," around April 15.

Northern States

Bank of

(9/10)

123

South

D. C. Kamins Joins

Broad

Street, members of the Philadel¬
phia-Baltimore Stock Exchange,
announce

Arthur

Toscani

that

Martin

Stotter
have

with them

and

Rosenthal,

Dominic

become

associated

registered

represen¬

tatives.

L. F. Rothschild & Co.
David

Terry is
ver

bers

now

with Saunders, Sti¬

Co., Terminal Tower,

the

Midwest

mem-,

Stock

change.

Ex¬

■

(6/2)

reported that the company plans sale of

Richard
With

Erley Now
Shearson, Hammill

(Special to The Financial Chronicle)

CHICAGO, 111. —Richard A.
Erley has become associated with
Shearson, Hammill ,& Co., 208

Kellner

South La Salle Street.

Plan

Builders, Brooklyn,

N. Y., is now associated with L. F.

Rothschild & Co., 120 Broadway,
New York, members of the New

Co.,

24,

Inc.,

Ltd.,
R.

Chicago, 111.

Toronto,

Canada

Dobson,

President, "announced that
approximately $1,000,000 in
future, partially through-'debt financing and
partially through the sale of additional common stock.
the company plans to raise
the near

Underwriter

—

To be named later.

pected about May 1.

Registration

Ex¬

—

Union
>

Bank, Los Angeles, Calif.

March 19

capital

this

bank

offered

stock

70,028 additional shares oi

(par $10) to its
March 18, 1959, 011 the basis of
12 shares then
held; rights to
per

stockholders
one.

new

of record
share for each

expire on April 8. Prico
Proceeds—to increase capital and

share.

Underwriters—Blyth

& Co., Inc., and Stern,
Frank, Meyer & Fox, both of Los Angeles, Calif.
Union Electric Co. (Mo.) "V
Feb. 23, J. W.
McAfee, President, stated that the com¬
pany plans to sell about $30,000,000
mon
stock later this year

of additional 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.,
and Shields & Co.
(jointly); Merrill Lynch, Pierce, Fen¬
ner &
Smith, Inc. Offering—Expected toward the end
United

States

National

Feb. 27 it

Bank,

Portland,

Ore.

was reported that this
bank plans to issue an
additional 23,000 shares of common
stock on the baste
of one new share for each
49 shares held as of
March
26, 1959; rights to expire on April
15, 1959. Price—$50
per share.
Proceeds—To increase capital and
surplus.
Virginia Electric & Power Co. (6/2)
Feb. 21 it was announced that
the company plans to
offer an additional
710,000 shares of common stock to
be offered for
subscription by stockholders of record on
or about June
2, 1959, on the basis of one new share for
each 20 shares then held.
Proceeds
For construction
program.
Underwriter—To be determined
by competi¬
tive bidding. Probable
bidders: Merrill
Lynch, Pierce,
Fenner & Smith, Inc.; Stone &
Webster Securities Corp.
Bids—Expected to be received on June 2.
West Penn Power Co.

was

Mr.

Erley
formerly Chicago manager for

White-Phillips Company, Inc.

March 10 it

(5/25)

was

reported the company contemplates the
about $14,000,000 of first
mortgage
bonds, Underwriter—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;
Lehman Brothers and Eastman
Dillon, Union Securities
& Co.
(jointly); The First Boston Corp. and Harriman
Ripley & Co. Inc. (jointly);
Kidder, Peabody & Co. and
White, Weld & Co. (jointly).
Bids—Expected to be re¬
ceived up to noon
(EST) on May 25 at office of West
Penn Electric Co., 50 Broad
St., New York, N. Y.
issue

Forms S.

and

sale

Jay & Co.

Rejoins Courts & Co.

PHOENIX, Ariz.—S. Jay & Co.,
Inc. has been formed with offices

3422

act

West

Turney

(Special to The Financial Chronicle)

SOUTHERN

Avenue to

John

dealers in over-the-counter

PINES,

McPhaul

has

—

rejoined

Courts &

Co. He has
recently been
Officers
are
Samuel
Jampolis, President and Treasurer, associated with the local office of
and B. Jampolis, Vice-President Eastman
Dillon, Union Securities
and Secretary. Mr. Jampolis in the &
Co.
past was with Englandep & Co.

securities.

Joins A. G. Becker

Reginald

Hill

Marlow

„

Forms Byron Hunter Co.

Reginald H. Marlow

(Special to The Financial Chronicle)

Minor L. Wheaton

Ohio —John

announced that the company

25 years President of Eastwood
Lodge, of Oakland, Maine, and
formerly
director
of
sales
for

Now With Saunders Stiver
CLEVELAND,

was

Kamins, for the past

York Stock Exchange.

(Special to The Financial Chronicle)

was

$30,000,000 to $40,000,000 debentures. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn

body-& Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston ; Corp.; Morgan Stanley &
Co.;

Co.,

share for each 20 shares held.

bank loans and for construction

Public Service Electric & Gas Co.
Jan. 30 it

Halsey4 Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬

new

repay

stockholders

—

plans to issue
and sell $18,000,000 of 30-year first
mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders'

Teller

—

announced that the company

Albert,

one

common

is planning
.the sale of $15,000,000 of first mortgage bonds.
Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co4 Eastman
Dillon,
Union Securities &
Co., Merrill Lnych, Pierce, Fenner
& Smith Inc. and
White, Weld & Co. (jointly); The First
Boston Corp. and Harriman
Ripley & Co. Inc. (jointly).
Offering—Expected about mid-year.

—

Pennsylvania Electric Co.
Feb. 10 it

share for each 12 shares

Three With Teller

the basis of

subscription by

Co., Inc. and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore, Forgan & Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Smith Inc. Offering—Expected some¬
time during August.

June.

PHILADELPHIA, Pa.

of the second or third
quarter of 1959.

(Minn.)

Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Lehman Brothers and
Co. (jointly); The First Boston
Corp., Blyth &

Proceeds—For construction expenditures. Under¬
writers— Kidder, Peabody & Co. and Merrill
Lynch,
Pierce, Fenner & Smith Inc. Offering—Expected in

was

Power Co.

program.

held.

Georgia Power Co.

March

—$59.50
surplus.

Riter &

Florida Power Corp.

Dec. 10 it

Teleflex

was

stock for

Proceeds

Feb. 4, W. J. Clapp,
President, announced that the cor¬
poration is planning to sell additional shares of common
new

end of May.

reported that the company also is con¬
offering about 714,000 additional shares of

sidering
common

Underwriters—Dean Witter & Co.; Blyth &

one

23.

to repay bank loans and for construction
pro¬
Underwriter—To be determined by competitive

March 31 it

was

the basis of

June

bidding: Blyth &-Co., Inc. and The First Boston Corp.
(jointly);. Lehman Brothers and Riter & Co. (jointly);
Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Harriman
Ripley & Co. Inc., and Eastman Dillon, Union Securities
& Co. (jointly);
Kuhn, Loeb & Co.; Smith, Barney & Co.

Co., Inc.; William R. Staats & Co.; Eastman Dillon, Union
Securities & Co.; and Dewar & Co.

be used

shares of capital stock on the basis of one new share for
each nine shares held
(following proposed two-for-one

stock

received

financing plans, and is considering the offering and
sale of $10,000,000 of new
preferred stock. Proceeds—To

announced that Bank plans to offer to
its stockholders of record
April 21, 1959 the right to
subscribe on or before May 11,1959 for
105,00Q additional

stock split).

its

Offering—Expected early part of May.

March 27 it

company has revised

authorized

First National Trust &
Savings
San Diego, Calif.
(4/21)

Becker

$10 per
increase capital and surplus. Un¬
—

Northern States Power Co.
(Minn.)
March 31 it was reported that the

April 28

reported that the company is planning
offering of about 100,000 shares of common stock.

Underwriter

Equitable Life Assurance Co.

Bids—Tentatively planned
Registration—Expected at

was

Registration

Spector Freight System, Inc.

Feb. 16 this company
sought ICC approval for issuance
of 200,000 shares of class A
common stock
(par $l)^oJ
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. Cr.

announced that the company
plans an of¬

Probable bidders:
Boston Corp.;

—

March 31

Southwestern Electric Power Co.
(5/12) Jan. 26 it was reported that this
company
(formerly
Southwestern Gas & Electric
Co.) plans the issuance and
sale of about $16,000,000 of first
mortgage bonds. Undcrwriter—To be determined by competitive
bidding. Prob¬
able bidders:
Halsey, Stuart & Co.

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 11:30 a.m.
(EDT)
on
May 12.

company

bidding.
Halsey, Stuart & Co. Inc.; The First
Glore, Forgan & Co.; Blyth & Co. Inc.

over¬

preferred stock to
1,000,000 shares from 472,229 shares, and the common
itock to 25,300,000 shares from
20,300,000 shares. Pro¬
ceeds
For major expansion program. Underwriter —
White, Weld & Co., New York.

Registrationbe received on

—

Co.

if Electronic. Mechanical Specialty Co.

was

Smith; Kidder, Peabody

White, Weld & Co. (jointly).
Bids—Expected to

Inc.; Merrill Lynch,

this

mortgage bonds. Proceeds
For capital expenditures.
Underwriter—To be determined by competitive

Corp., New York.
on

that

Northern Illinois Gas Co. (6/23)
March 25, Marvin
Chandler, President, announced com¬
pany plans issue and sale of $20,000,000 25-year first

announced stockholders will

was

;

Proceeds—To
derwriter—John M. Tait & Associates,
Cincinnati, Ohio.

expire on May 26.
Proceeds—For construction program. Dealer-Manager—
Stone

announced

share.

El *»aso Electric Co.
(5/12)
Feb. 9 it. was reported that the
company is also planning
an offering of 76,494 shares of common stock to
common
«tockholders on the basis of about one new share for
each 25 shares held as of May

11, 1959 (with

was

fering of 950,000 shares of capital stock. Price

—

rights

North American

Co.; Kidder, Peabody & Co., and White,
Weld & Co. (jointly); Merrill Lynch,
Pierce, Fenner &
Smith.
Bids
Expected to be received up to 11 a.m.
""EDT) on May 19.

privilege);

Dec. 1 it

subscription

plans to
Issue and sell
$5,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program. Underwriter—To
be determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities
Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith;
Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬
ceived on June 25.
VJ,n

was

Hutzler

■

and

May 28.

Mississippi Power Co. (6/25)

Co.
(5/19)
reported that the company plans the sale
of 20,000 shares of preferred stock (par $100).
Pro¬
ceeds—For construction program.
Underwriter—To be
-determined by competitive bidding. Probable
bidders;
Eastman Dillon, Union Securities & Co.; Salomon
Bros.
Feb. 9 it

;i-'

was

Planned for April 17.

(jointly); Lehman Brothers and Bear,
(jointly). Offering—Expected in May or

Stearns & Co.
June.

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—Expected to be received
up to 11 a.m. (EDT) on May 19.

& Co.

Eastman, Dillon, Union

Securities & Co.

Southern Electric
Generating Co. (5/28)
was announced that the
company plans to issuo
and sell
$25,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by
competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities
Corp. (jointly);
Merrill Lynch, Pierce, Fenner &

construction

and

Dec. 10 it

$20,000,000 of ffrst mortgage bonds. Proceeds—

Co., Salomon Bros. & Hutzler

was

and

reported that the company plans to
additional 1,278,720 shares of common
stock.
Proceeds—For further acquisitions. Underwriter—J.-A.
Hogle & Co., Salt Lake City and New York.
offer

City Power & Light Co.

was

Co.

Diego Imperial Corp.

March

program.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston
Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities
Corp.; White,
Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb &

Boston

San

Light Co.

announced that the
company
sale of $8,000,000 of first

Dec. 29 it

Eastman

Dillon, Union Securities & Co.; The
Corp.; Morgan Stanley & Co.; Stone &
Webster Securities Corp.
Offering — Expected about
mid-year.
\V'/ ./ ."/V/V- ;
/. •
First

Bids—Expected to

was

Kansas

March 9 it was reported that the company
plans to issue
and sell $25,000,000 q£ new preferred stock. Underwriter
—To be determined by competitive
bidding. Probable..

bidders:

14.

Lehman Brothers
(jointly); Morgan
Stanley & Co. and Drexel & Co. (jointly). Bids—Ten¬
tatively expected to be received on June 2.

is contem¬
plating the
mortgage bonds.
Underwriters—To be determined by
competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co.
Inc.; White, "
Weld & Co.;
Kidder, Peabody & Co.; Salomon Bros. &
Hutzler and Merrill
Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co.,
Inc., (joint¬
ly). Offering—Expected during August. •■■■'

due

—Expected

Loeb

45-

(Special to The Financial Chronicle)

passed

EVANSTON,

111. — Bryon W.
March 6 at the age of 68. Hunter in partnership with L. R.
dent
of
The
Chase
Manhattan A. G. Becker & Co., Incorporated, He was formerly an executive of Hunter has formed Byron W. Hun¬
the National City Bank of New
ter & Co. with offices at
Bank, passed away March 10 of 120 South La Salle Street, mem¬
2212
York and was at one time assist¬
Minor L.

Wheaton, Vice-Presi¬

acute leukemia after

illness. His age was 55.

extended

CHICAGO, 111.—Walter H. Hall-

steen, Jr. has joined the staff of

away

bers of the New York and Pacific

ant

Coast Stock Exchanges.

lonial Trust Co. of New York.

the

President

the

Co¬

Sherman Avenue

securities business.

engage

The Commercial and Financial Chronicle

.Thursday, April 9, 1959

(1670)

Lazard Fund Sells

Newark

Scott Planning in

N. J. —Scott Plan¬

NEWARK,

firm

located

formerly

was

AT&T

Mutual Funds

ning Company is now conducting
its investment business from of¬
fices at 11 Commerce Street. The

of The Lazard

By ROBERT R. RICH

$16.35

Holdings Has New Cash

Fund, Inc.,

the

Broad Street

rose

quarter

With (Ira wal Plan

ending

Brooklyn, N. Y.
tributed

I.D.S. Net Inc. and

subside

income

net

With-

made

been

has

Plan

available to shareholders of Broad
ing l"od. Net assets on the 8,500,- street Investing Corporation, Na-

aries, increased to $65,286,298 from
nr^pHincf

ion

Cash

Automatic

new

drawal

and

A MUTUAL

INVESTMENT
FUND

Net

and

from

income

total

agement of

operations,
under

assets

net

Diversified

Investors

in 1958, Joseph M. Fitzsimmons,
President, stated in the 65th anJ1Ual rep°rt
+.

Combined net operating income
Investors Diversified Services

arid its wholly owned subsidiaries

WRITE FOR

for

YOUR INVESTMENT DEALER OR

the year increased approximately 16% to $12,792,060, equivalent to $8.80 per share, compared

NATIONAL SECURITIES t

with $11,035,477 or $7.59 per share
1957.
for
After adjustments for

FREE INFORMATION
FOLDER AND PROSPECTUS TO

RESEARCH CORPORATION

capital gains and losses,
come

htobMsd 1930

1958

net inequal to $8.81

was

share compared with $7.64 per

per

Broadway* How Yorit 5, N. %

for

share for the prior year.
The
rate

regular quarterly dividend

' he "on', nunf a^d

stock

common

cents

per

with the declaration for the
1,
7 in !
n-"j i"

quarter

ments for the

■The

Lazard Fund,
inc.

vear

stock

third

Dividend

1958.

amounted

pay-

$676,721,583
Dec.

Investors

of March 31,

1959

"""*

during

the

year

Mutual, with assets of
year

of the Broad
Mutual Funds

ments each month.
^Monthly payments wihhe made
,

report to stockholders, Al-

and lhe extension, ol. retirement
yearf» bave added to the requirements for persop^^resourcesv and.
'

portfolio changes. The holding of 1 will -be redeemed as necessary to
American Telephone & Telegraph, Provide fr-e additional funds reuiomi^nnv
quired Ao
to make
Company has
has been
been ■■'disnriseddisposed of - quired
make withdrawal
withdrawal paypay-

"market
lamily pi'otection.^ Atythe same;,
xities
^„m.e
increasing complexities
,xi f® unrelated to

affairs have led

investment

of
yjj

noi^^ri^i^;|iri;|he; amount t-.e shareholder has directed.
..y

apprdc|^fitm

the' three-for-one

to,

management through the

S10j?

,ts appreciation potential."

uf ^unnoted that
AJJ
which

tunities in the markets

forward

look

??rve' we

con

forwaid to con

ihp

ahend

ind

-i

t-,

the

fu-

Canada's Scuririer

Fund

Saidder

Canada

Up
Ltd.

Feb.

28, 1959, had a net asset
value
of $64,523,043
(in United
States dollars), equal to $12.89 per
on

end,

nation's largest balanced

ilie X"1UU

offered «
as <*u
an owut.,
addiwucip

tiorial service ^^shareholders of
the Broad Street Group o-Mutual

»o

M
Oiiifb
Pfitminnm
UJnjf oi!
R0yal Dutch Petroleum. Gull Oil
Wnvcii

rnmivmv

whnw

international

are

tbat

increascd. Thd officers stated

from hkvirincioal

scope,

when his withdiawals
when
s-, itndrawais
accumulated
aividends,

that

lze

exceed

nnPr

company, whose oper-

at ions

pa.VJnents macieiiom ni» principal
will deplete his capital; and if

that they believed dhat shift was fcessive
withdrawals continue
justified on the
of relative j °n? elloPgh. th®
values,
although
admittedly at vdstment will be e
a s,e .

basis

variance with

Net Asset Value

It was

the position .in

,.,c
we

tinued expansion of our business
in

The Plan is

—

stock
inYesstock
split and
an v increase
in
growing leliancd upon piofes- djvidend jlad materially lessened

share, according to the company's
report for the quarter ended on
fund, and Investors Group Ca- that date.
This net asset value
nadian Fund Ltd., with assets of compared
with
$59,687,000,
or
the

was

receive pay"

licllud short-term obligations.

-;-,;ra

one

<<mu^-A:'Hettinger/sfe/Chairnian\!fir^-:)^^accum^at^ldiyiderids.
.T"e nation s
j^„i^--'''and Richard H. Mansfield, Presi-r If such dividends are mot adeiwing and educational standmds, dent
noted
seyeraI.n;5!rlp6£ta!ft,:'««Bte, .full or fractional shares

31, 1958 amounted to

$1,336,967,290 at the 1958

United

States.

New

Available upon request

44 Wall

•

obiective

•

1q.:> The Fund was 87%-invested in 000 worth of
,
equities, at the end of the quarter, Street Group

„dLg
towards
nationwide dis-

of 1958 and is
tribution

the current

market

It further

pointed out
that MacMillan & Bloedel, a Canadian company wijh large timber
reserves in the Pacific Northwest,
sentiment.

substituted

wag

for

of
high
quality
which
appeared ko f have
growth potential.

but
less

C0]ripany

1difi
•A1in
re^]pciUm 0f "

M-dhiesnn

^df>r>(:e

'itt

llilCi TXllS
i

2 ftftO StoCKlinHlPT^
'
Stockholders of Energy Fund, a

domestic

JCillCFffV

no-load Mutual Fund suecializing
in the energy industries,tiow total
2,000. This Is better than a 50%
increase since the first of the year,
at which time stockholders totaled

syewdsx'ss^s m&z&'&iis sasssswssa ^ Fu„d
jsassa >»»—'»- « - r f Tw,
$62,809,604 fitsss— »•»ssAwy4*
flme ne* assets
less^lhan

1:
■

pnjL

per

$2,749,076,044 compared with $2,072,354,461 at the close of 1957.

Quarterly Report

h„

'9a/> dad ^ f™..

1,453,721 shares held by

formed

Insur--

I
v,.}
.,!:! ture," IDS President Fitzsimmons

$3.50

Total net assets of the companies
in the Investors Group increased
and

subsidiary

both classes

4,811 shareholders.

J"VCa^
owned

per

Life

Syndicate

Tnvp<;tors

class

raised from 75

was

amounted to $1^60,f gai"?"lh®-\Street Group of Mutual Funds,
wholly *i Pn?«,wvestmcntsan actional.
Under the Plan an investor who
late ih:^
buys or,owns a minimum of $10,\?

compared with 10.4% in 1957.

man-

Services, Inc. rose to record levels

120

Br°ad Street Sales Corporation,
national distributor of the Broad

loans) of all certificate companies,

Street,

New York 5, N. Y.

certificates

The

issued

during
the year by Investors Syndicate of
America, Inc., and Investors Syndicate Title & Guaranty Co., New
York, wholly owned subsidiaries,
totaled
$311,003,160 in maturity
values compared with $326,211,441
the preceding year.
At the 1958
year end, the aggregate maturity
value

certificates

certificate

the

Investors

force

companies

Group

prised

common

™ ~

Feb. 28, 1959

com-

stocks appraised at

$1,674,250,
or
2.7%;
corporate
bonds and notes, $64,000, or 0.6%;
and adjusted cash balance, $128,424, or 0.2%
New

additions

the

portfolio

for

were:

Delta Acceptance 5%% conv. pfd.,

un->

Crown Life, and Unilever.

matured certificates of the parent

which discontinued issuing its own certificates in 1940)

Ecuadorian

Increases

"follows"

Corporation,

pipnc!

p-nie

w't
"

thp

Bubctnntiii

v,i„«

nnfiOTnrLa

were

Tn„„r3npp
fmm

Cpliin« it

^mnrovement hf

u;inaihi

o,'.

tbn

$1,000,000 and share price $12,
today has total assets of il,300,000,
and total shares outstanding are
354,000. Net asset value per share

on April 2' 1959 was $20-64' an
n"f increase of 13% since the begin-

under

,niu;,

^imn&
lrenJS anTuie ' quality • oi nin(,
the compai-iy.
comiDanv
ning nf
of fhp
the VPnr
year.
-

since

Reierrmg to the Lazard Fund
annual

lor

report

the

year

Erjergy Fund shares

were made
imnerTal'oii Siemens

are

offered at net asset value, growth

1958

has

hppn

without

benefit

tne oxficers noted that m coniiec- selling organization
*lon wlPl tbe ^und s mves.ment
New
''

holdings

•

pnmnnnv

uplijf fhy/

$60,602,930, or 96.5% of net assets;
Government of Canada securities,

the

(including

assets

net

(Canadian)

Phillips

Works_

thfl

Incandescent

statement

Acqiiisitimi

Lami>

had

been

oeeii
The Fund recently completed
& Halske
Biitfsh American Oil i51?de that the Fund is "slowly ana an initial postion of 2.500 shares
amounted to $2,248,601,484 comIndustrkd Acceptance Cotp
Shdll W
aU uf'he ca,le ,?f
W'S Wato Bi«i Telephone, Inc.,
pared with $2,158,714,092 at the Trinidad
Calgary
o
v' ?rpi^We'^
tno'mgraduaUyrexp
dE^1*
ormg In order 40 participate in the exprevious year's
rr«+oi «««_
'
-.^5.r<fore,en-•enmnaiu'es-' of invp<?fi«er»t v
wrimWtW
inrliie+Vv
company,

W05ksA T,nf. slaTeiT|einl J1 act

tificate accounts
Sales

FUND

investing in
bonds and preferred stocks
selected for conservation of

principal and current in¬
come

and in

selected

common

for

mutual

A BALANCED

stock's

income

and

profit possibilities.

fund

v^cl,jauil

affiliates—Investors

Mutual, Inc., Investors Stock Fund,
Inc., Investors Selective Fund, Inc.,
Investors Variable Payment Fund,

Inc.,

and

nadian

Investors

Fund

Ltd.

—

Group

Ca-

amounted

$281,998,319, including reinvested
dividends and capital gains distributions. The comparable figure
for

1957

holders

$28,1,491,998.

was

five

the

funds

Sharenum-

bered

512,306.
Capital stock

•An Equitii

Fund
marily in

Foundries

^mmuictn

Commerce
&

Dominion

Steel, and

Southam

investing pri¬

«m.

Royal Dutch Petroleum, and
of Montreal
; "
F :

Completely deleted from the
portfolio were: Canada Treasury
Bills 2/20/59, Pacific Petroleums
5% conv. 1/1/77, Brunswick Mining & Smelting, Trinidad Petro-

American

□

Gypsum copipany.^^

^ijyrto.uuu

*ni

3.G92,50o

R.eseai cJi .Coip. notes that the

3,692,000

current surge of. interest in boats

National Lead com'oany::::^:

2 800 om

strikingly parallels the enthusiam

Goodrich

(B.

2^720

int'i

Machines 1,corp.__ 2t7i5,ooo
Pacific Compary--—— 2,075,250

F.)

Comuany...-

^or m°l°r cars in the 1920!s

000

Then

Business

Pont

the

lure

of the

highways

counled with technoloeical

iTTj

^aevei

(E. I.) dc Nemouts & Co.

2,341,500

2.301,000

op^n^Dts that made cars .safer and

Company....^..—2,225,000

easier to drive arid maintain pop-

A Balanced Investment Fund

2MST iSSSSSrSfc:

Company

invests

chemical

Prospectus

upon request

Atlanta

—

are

Sloan '

members

—

motoring For

sponsor and maifager of Abe $450
National ^Securities Series

of mutual funds.
-

Radio fiirectiori finders and

of the New York Stock

dars

April 9th will ad-

pers

ra-

now assist
small boat skipin navigating. Compact radio
mit Lester Genser to limited part-' telephones provide
convenient
nership.
■
communications as
well as the

Exchange,

Los Angeles

many of

sought out today, reports the

- million

CITY,

N. J. — Sloan,
Rodetsky. & Co., 26 Journal Sq.,

Lord, Abbistt & Co.
Chicago

•

the same leasons, the waterways

2.109.375
-

Rnrfeulcv Arlmif
oioan, iAOaetSKy
Aamit
JERSEY

ADDRESS

company,

CITY

'' '

Deere

;

—

Oeorgia-Pacific corp. „i._„____S6,5501ooo lars on pleasure boating this sealeuin'eompatty
son
and National - Securities &
<sU
v-juiiucrs
.rar

Dow

New York

tvn

United states steel corporation..

portfolio bal¬
anced
between bonds and preferred stocks
selected
for stability, and
common
stocks
selected for growth possibilities.

Wellington Fund

Business Shares
The

P Wellington Equity Fund
NAME

Halske, A.G. —;Toiistituling

Southern

Wellington Company
Philadelphia 3, Pa.
-

foss section of . the/. nhemicab neaSlLFt I>OatlI10f
dru3> pharmaceutical, glass, rub -ber and steel industries of the:7
d
European common-market.:' ;
Vr
The 15 largest holdings of the
More than 35 million Americans
Eund as of March 31, 1959. w^re: will spend about two billion dol—

The

one

•

tGuif Oil corporation...:

write to

seveiv;;.^It is anticipated ..that-the rate

companies: Aeieri^ d(y Lqngwy/ °f growth will increase over the

Besiwaii

stocks

Ask your investment dealer
for

Check

—

stocks

Bank' £ir£: Rhone Rouleqc, and Siemens ci:eafe in.revenues and earnings

surplus of leum Development,' Pacific
Services, in- Petroleums, Gypsum, Lime and
equity in the undis- Alabastine, and Kerr Addison.

growth of capital and

the

and

future income.

prospectus

Reductions in holdings were
fected
bv
sales
ofAluminium

selected for possible longterm

«—»

vested ' in

Company.

Investors Diversified

cluding its
common

Bank

Number 5836

Volume 189

of sending

means

time of

The Commercial and Financial Chronicle

...

distress signals

rate),; preferred stocks

emergency.!\Ultrasonic!

cash items.

The

cash

and

depth guages furnish warnings of

holdings .constituting the remain-!
ing 84.44%; of assets includes

business

stantial investments in industries

.tronic

having "

t j

issues that are on tap. The Industrial
National Bank 6f
largest, fortunately, is slated to be Providence;
National
Bank
of
marketed by negotiation rather Westchester;
Singer, Deane
Se
than competitive bids.
Scribner; Thomas & Co.; McJunThis is Philco CorjJ.'s $20 mil¬ kin, Patton & Co.; Anderson &
lion of debentures scheduled to
Strudwick; and Frantz Hutchin¬

sub¬

long-term
or showing, his¬
torically, a relative stability as
companies,"
according .-to -4he to earnings, price and dividends.
April issue of ATOMIC ACTIVI¬ In the former category are the
TIES published by the investment petroleum - stocks
accounting for
represent

attract

some

market -sufficient to
of America's largest

Another

r a c

v e

growth prospects

be offered on Thursday. Tuesday
brings $11 million bonds of Cen¬
tral Power & Light Co. up for

bids. Louisiana Power & Light is
slated to sell $7.5 million of pre¬

- 17.64%" of- assets, and the chemi¬
of advanced tech- : cals-and drugs
constituting 11.41%

company.
'

area

nology that" is benefitting boating
is plastics. Glass fibre reinforced

of assets.-

ferred
Once

offering areas of greater earnings
plastic boat hulls have won wide¬ stability,
together
account
for
spread acceptance ■; for both large 22.92
of the company's assets
and small private craft. Qualities at market.
•!"''
v:
-sr."
'
'
V 1
such
as
'
■'
long life, low : mainte-nance
and an inherent degree of
,

■

fire

resistance

reasonable

combined

cost

Ecker Reiterates

with

distinct

are

important role
in
doubling
glass fibre production in less than
five

Opposition

volume

For
bres

Other

•.

offer

from

and

mildew

service

life

cotton

drying,

quick

freedom

and! much

sailcloth.

Advanced

longer

traditional

the

than

Nylon

iigfitness,'

advantages^ of

strength,

metallurgy

also

boating
cording to National. Corrosion
making

mark

its

ac¬

re¬

sistant stainless steel and titanium
ideal for deck

are

num

and

spars

commonplace
craft

and

fittings, Alumi¬
masts ■; are

-in

outboard

motor

extensively
alloys because of

now

* sailing

many

facturers
num

Variable Annuities

Assets

use

ease

SEC-Variable

paved

The

assets

$43.44,

of;fab¬

annuities

were:

stock of

was

war¬

stock

combined,

stated,
were
meeting of

the

Re-elected

Henry

Brown,

tinental,

and

the

repre¬

stock¬

directors

Breck,

should

ably

enter

this

field.

Vice-

Tri-Con¬

Fred

E., Page,
VicePresident of Tri-Continental, and
W.
Paul
Stillman,. Chairman of
The

Mutual

ance

Company..

Benefit

Life

Insur¬

for

life

that

once

part of the business

any

life
is

insurance

•

sively

this

enter

evitably will

field,

they

control

Mr.

Ecker

jority

that

noted

the

ma¬

variable annuities

guarantee

that ".

nothing

they

the

an¬

substantial.

investment risk
none

"This

the annuitant,

been

our

line

the whole,

approach, toward

a conserva¬

the

securi¬

Rossman

Joins

Admit

Craig-Hallum

(Special to TH£ Financial Chronicle)

MINNEAPOLIS, Minn. —John
Stacy is now with Craig-Hal¬
lum, Inc., 133 South Seventh St,

favorable

institutional

issue of

$20,000,000 of its

notes

due

April

1974. The proceeds are to be used

refunding

The

first

was

closing

for

April

Hathaway Inv.

engage

closing is scheduled
April 1, 1960 for $15,000,000.

Passaic

with

Street

business.

securities

Officers

are
Patrick
McLaren,
President;
Michael
D.
Favata,
Vice-President; Marion Steinen,
Secretary; and
Marie
Favata,
Treasurer. All were formerly With
Future
Planning Corp. Prior

Mr.
&

McLaren

King,

Co.

with

was

Libaire, Stout A

"/■

R. G. Ingram

Opens

TERRE

HAUTE, Ind. —Ray G.
Ingram is conducting a securities
business

from

Meadows

Center

of Ray G.

name

offices

7-B

the firm

under

Ingram & Co.

With First California

$5,000,000, and the

second

formed

been

purposes.

(Special to The Financial Chronicle)

for

LOS
J.

ANGELES, Calif.—William
Crawford, Jr. has become con¬

nected with First California Com¬

$16,910,000 Bonds of

Incorporated,

pany

South

647

Spring Street.

State of Connecticut

DIVIDEND NOTICES

Offered to Investors
The First National
New

York is

derwriting

City Bank of

manager of an

syndicate

which

AMERICAN

un¬

CAN COMPANY

was

the winner

2.9341%

STOCK

COMMON

On March 31,

1959

quarterly dividend

fifty cents per share was declared on tha
Common Stock of this Company, payable

May 15, 1959 to Stockholders of record at
the close of business April 24, 1959. Trass*
tor books will remain open. Checks will he
■tailed.

JOHN R. HENRY, Sccrctarf

to the state.

Halsey, Stuart & Co. Inc.; Harris
Trust and Savings Bank; Kuhn,
pipe Loeb & Co.; Phelps, Fenn & Co.;
to meet Stone & Webster Securities Corp.;

natural

gas

continue

investor response,

by results of recent
Tennessee Gas Trans¬

offerings.
mission

Co.; this

lion

bonds

first

its

the

orders

were

week

4%%
priced at

market

Pension

Hallgarten & Co.
B.

Van

Hornblower

Ingen

The increased importance of the

sources

Co.

Inc.;

Weeks; First of
Michigan Corp.; F. S. Smithers &
Co.; Weeden & Co. Inc.; Roosevelt
& Cross Inc.; Schoellkopf, Hutton
& Pomeroy, Inc.; Reynolds & Co.;
Securities

American

market.

GOOD-YEAR

Corp.;

No. 104

Merle-Smith; and C. F. Childs

and Co. Inc.
Branch

DIVIDEND

COMMON

Adams, McEntee & Co., Inc.; Dick

The Board'of Directors to-

day declared the following

Co.;
Robert
Winthrop & Co.; J. A.
Hogle & Co.; National Bank of
Commerce of Seattle; Lincoln R.
Young & Co.; Model, Roland &
Stone; Winslow, Cohu & Stetson;
Banking

Trust

dividend:

cents

per

the

Common
Stock, payable
June 15, 1959 to stock¬
holders of record at the
close of business May 15,
1959.
The GMiytar

Tire I Rubber Ci.
By Arden E. Firestone,
Secretary

NOTICE

Pace

Set

pension funds which have grown
immensely as • investment factors
in the last decade, is being felt
on a broadening front. Buying by
such

Assistant Treasurer
120 Broadway, New York 5. If.

slow.
Funds

ATCHISON, TOPEKA AND

York, N. Y., March 31, 1959.
The Board of Directors has this day declared
a dividend of Thirty Cents (30c) per share, be¬
ing Dividend No. 191, on the Common Capital
Stock of this Company, payable June 1, 1959,
to holders of said Common Capital Stock reg¬
istered on the books of the Company at the
close of business April 24, 1959.
R. M. SWEARINQEN,

Inc.; Wertheim & Co.;
Seattle-First National Bank; and

marketed

mortgage

THE

SANTA FE RAILWAY COMPANY
New

Blair & Co.

MEETING

April 6, 1959

LONG ISUND LIGHTING COMPHIY
THE GREATEST

NAME IN RUSBKR

of the factors

one

LONG ISUND LIGHTING COMPANY

equity

the

sustain
/ i j

And since their interest extends

il 21,1939

into the field of quality
is

not

surprising

stocks, it
that the possi¬

bilities of this formation of capital

affords

rising

attraction

for

the

prospective corporate borrower.
American

graph
some

Telephone

Tele¬

Co.'s huge fund, boasting
$2.8 billion assets at the

close of last year, has been sort of

setting
these

pattern so to speak for

institutions

included

With

with
an

promissory

markets,'' Mi*. Bullock said.
DENVER, Colo.—Gerald L. GetAt Feb.
is
now:
28, 1959, approximately man
with
Hathaway
15.56 % -of assets was represented Investment
Corporation,
1824
by bonds (both U. S. and corpro-* Lincoln Street.

it is indicated

all

along," Mr. Ecker commented,
this shifting of the risk is
foreign to the life insurance busi¬
ness and may well bring damage
to the fine reputation our business
now enjoys."
'
'

place
vestor

to
in¬

Line Issues

companies

with

contention

"and

was

has
at

Eisele

group are:

Securities

the company."
has

Co.

offices

thereto

Gas Pipe

Corporation

ties

slow

Industries, Inc.,
it
announced on April 6, has

arranged through Allen & Co.

emissions. Again

except an interest in a
portfolio of common stocks or
other equities
." and that, "the -maturity.' But buyers evidently
variable
annuity places all the had expected a bit more yield and

reflects,
tive

remain

investors

to yield 4.92%. An attractive
feature
here
was
the
20-year

General

bonds

syndi¬

99 Vz

nuitant

Arranges

reoffering to the public, the
brought out by competitive bonds are scaled to
yield from
bidding must overcome the influ¬ 1.90% to
3%, according to ma¬
ence of any ..spread between first
turity.
" \
and other bids if these prove to be
Other members of the offering

held

F. L. Rossman &

representing an in¬
$3,870,035 over the net
assets at Feb. 28, 1958,
Hugh Bul¬
lock, President, announced.
"The invested position of Car¬

The

from

that i an issue of
440,000 shares of con¬
variable annuities are predomi¬
vertible second preferred stock.
nantly
an
investment
contract
Priced at 100 to yield 4.72%,
with "no true underwriting of the
the amount of the
coupon
rate
risks, the one earmark of insur¬
designated, the stock went out
ance
as
it has
commonly been
quickly and underwriters put up
conceived of in
popular under¬
the "all sold" sign.
standing * and
usage."
He
also
Yesterday Texas Eastern Gas
pointed out that the Court in its
opinion said of companies issuing Transmission Corp., put $45 mil¬
Court

•*

P. Michael Co. Formed
GARFIELD, N. J.—P. Michael

those

amass

industry, which in
itself would be an open invita¬
tion to Federal regulation."
or

debentures,

after

out

in¬

large holdings
of common stock,, carrying with it
at least some degree of ownership

Private Placement

evi¬

reveal

sold.

loose

to speak for new
r*

Co., 120 Broad¬
way, New York City, members of
the New York
Stock Exchange,
At Feb. 28-, 1959, total net
assets*
on April 9th will admit Kathranne
of Carriers & General
CorporationC.
Rossman
to
limited
was
partnership.
$19,247,803, before deducting
principal amount of outstanding

riers

flattened

stitutional

con¬

compa¬

telling where it

April 8 of an issue of
$16,910,000 State of Connecticut
Various Purpose Bonds, due May
cate and settled in a range
of
1, 1960 to 1979, inclusive. The
100^4 bid and 100% asked.
group submitted a bid of 100.6899
It is no great cause for wonder,
for
the
bonds
carrying a
3%
under the circumstances, that in¬
coupon,
a
net
interest cost of

"Furthermore," Mr. Ecker
stated, "regardless of SEC regula¬
tion, if the life companies aggres¬

Car riers & General

has been

reverse

continued

corporate-pros¬
tap
should I they

Co.

son

Houdaille

1959

Whelping: to

crease

recent

bonds.

new

Allen & Co.

competitive bidding stage.

issue

■

for

this

companies to
such contracts

Net Assets

dences of softness and demand for

we are

pects
are
materialize.

true, generally speaking, of issues
which have first gone through the

market

Presum¬

all interested in pre¬
serving State regulation of insur¬

Tri-Continental, Fred

President

occasions

nies "there

1,076,115

common

weeks while the

had

case

number

Jersey-Legislature to legalize ^ One of the best names among
the- sale, ofi variable annuities by public utilities, Cleveland Electric
illuminating..Co., brought out an
life insurance companies.
v
issue of $25 million of bonds a
"Quite to the
contrary," Mr.
ago
carrying a 4%%
Ecker declared on March 25, "this fortnight
coupon and
priced at 101.625 to
decision
clearly emphasizes the
yield 4.285%.
danger, ml Federal regulation,
The
bonds
which we have
got / away
to
a
pointed out all
along, if life insurance companies promising start. But the general

ducted

and
exercise of

the

President of

New

over

company,

stock and

success.

cut

1,131,185 warrants outstanding on
Dec. 31, 1958.
About 80% of the preferred and

sented

been

outstanding on March 26,
1959. These compared with 6,891,-

Chairman

This has been demonstrated

had

rants

holders.

were

cording to Mr. Randolph. There
6,961,922 shares of

common

degree

total

were, he noted,

marked

million

number of smaller

de¬

than

Francis F. Randolph,
Chairman,- reported at the annual
meeting of stockholders.
These amounts were up slightly
from
$48.38 and $43.10, respec¬
tively; at the start of 1959, ac¬

with

$14

can

but I can think of no better
of * inviting Federal regula¬

all warrants,

983

interest,

bankers

than

shares outstanding

assuming

common

investor

that

mar¬

tion

estimate

common

investment
on

Power &

decided

way

Corporation, the
nation's largest diversified closedend

bond

ance,

Tri-Continental

$48.49

secondary

manu¬

Corp.

share of

the

Federal supervision is established

recent

most

•

;

Wednesday, Wisconsin
Light will open bids for

competitive

alumi¬

$48.49

through

bidding.

assurance

the way for action by the

will end."

Rise

investors

something better than 60% of the

fering

rication, by die casting combined commence selling
to the;public."
with weight advantages.. ;
% '!
Mr. • Ecker suggests

Tri-Con.

Dacron

new

brought

bring a
negotiated deal out for public of¬

forms

sailing; craft, synthetic fi¬
such

offerings

negotiated route as
against those which find their way

velops

plastics Compa,ny, described as "fantastic
and!! misleading" a statement in
are used in paints, life jackets and
the New York press that the Su¬
rope
ATOMIC ACTIVITIES re-!
preme
Court's
decision
in ^the
ports.
million.

corporate

market by the

lack

Frederic W.. Ecker, President of
current annual;
the Metropolitan
Life Insurance
excess
of $250

to;a

years

sales

cation becomes clear between

ket continuing to show

for small boat owners.
Boating applications have played
an

again the line of demar¬

With

ad¬

vantages

stock.

And

Utility and retail trade,

47.

few

stock

common

dangerous shoal waters. "From. a

standpoint, these- elecdevices for-pleasure boats

(1671)

and

liberal

this
share

has
of

equities.

QUARTERLY

hereby given that the Annual
Meeting of the Stockholders of Long
Island Lighting Company will be held at
the Company's
Ilicksville Operations
Center, 175 East Old Country Road, Ilicks¬
ville, New York, on April 21, 1959, at
2 o'clock P.M., to elect eleven directors,
to vote on
the appointment of Price
Waterhouse & Co. as independent public
Notice is

accountants

take action

for the

year

such other business as may

come before the meeting or any
adjournments thereof.
Only holders of common stock of record
on the hooks of the Company at the close
of business on March 13,1959 are entitled

The Board of Directors
clared

the meeting. The stock

transfer

Common Stock of the
on

Going

Distributors

Ahead

new

the close of business

April 10,1959.

will hardly be rushed

ahead by the task

in the week
of moving the

VINCENT T. MILES

CHARLES E. ELBERT

securities

Treasurer

Secretary
March 13, 1959

March
-.

Company

May 1,1959, to shareholders

of record
on

has de¬

quarterly dividend of
cents
per share payable on the
a

books will not be closed.

Slow

)

COMMON STOCK

1959 and to

properly

to vote at

DIVIDEND

25,1959

The Commercial and Financial Chronicle

.Thursday, April 9, 1959

(1672)

years.

■

Capital

plus

period,
-

front the Nation's

million during the 29-year lease

Behind-the-Scene Interpretation#

jlJLm

M UiM/

l/\A/

an
annual
approximately
S1.4

Intelex

pay

rental

Department

Office

Post

The

will

Washington...

Department for 20

Office

Post

BUSINESS BUZZ

costs

maintenance

plant and equipment on the

for

basis of audited vouchers of ac¬

tual expenditures.

'IThe Post Office will be
WASHINGTON.
^

New Era:

The

—

each year.
It

sum

to operate 36,308 post

of¬

takes

money

colossal

major break-through from the
past.
'V r*(v.
,'
.V'-'i vv'Vtv
The Cabinet office said the
mechanized mail - handling de¬
vices is as important to postal
service for mail in 1831 or the
services for mail in 1831 or the

workers.
President Eisenhower in Jan¬

recommended that Con¬
appropriate $3,899,080,000
to operate the Department for,
fiscal 1960. The House trimmed.
the amount in a bill the other
day to $3,847,000,000, and sent it
uary

gress

to the Senate.

amount

and

!
<

with

";V:

the

•

Department's

handle

mail

without

long delays.

many

located

key

of¬

gateway

$2 Billion to Modernize

experts estimate
it will take at least $2,000,000,000
to modernize
its physical

Department is prepared to
launch a three-to-five-year pro¬

build 12,000 new post
buildings, and remodel

office

will

of the large

the

says

serve

that

mile-long

aid

Im¬

correct

Washington

visitors

conveyor

in and out for

from

are:

system

than

650 planes and trains every day
and for many trucks;
Five miles of "Mail-Flo" con¬

ing mail that marks the post of¬
in all states, it was highly
significant recently when
the
XJ. S. Post Office Department
officially
opened
the world's
most mechanized post office—
the Washington, D. C. office,
j

veyor

fices

belts to

between

the

move

mail

post office

semi

mail swiftly

sorting

areas

workroom floor,

automatic

letter

sorting

equipment to handle up to 18,000 letters

Semi

advanced

even

These include even faster

ter

sorters;

mail

separate

—

let¬

"cull"
according to

machines

types—at high speeds; machines
to "read addresses on letters;
even

handling,
new

lobby,

speedier mail

other improve¬
In

been provided.

"around

open

the

clock"

service

bank-type

greet the mailer. Near¬

counters

by, machines sell stamps and
postal cards, and make change.
New
fluorescent
lighting im¬

efficiency, and the build¬
ing will be air-conditioned, with
modernistic coloring. There are

proves

escalators

tion

post offices will mean
significant developments
for the American Postal System:

to upper

stories.

Asserting

the
Washington,
D. C. office will "produce bene¬

bottleneck to bet¬

the

service

mail

mails

clean

free

and

departs

about 250 planes at
Airport, and handles

National
mail

from

outbound

inbound

and

trains,

along
with
other surface transportation.
Mechanization

and

automa¬

costly

congestion, and eliminate
drudgery and use the abilities

securities

Fla.-First Sees. Opens

workers to better ad-1

JACKSONVILLE, Fla.—FloridaFirst
Securities,
Inc. has .been
formed with offices in the

Lynch

Building to engage in a securities
business. R. Eugene Orr is a prin¬

cipal in the firm.

vantage.

Ky. Co. Opens Branch

Additionally, the moderniza¬
tion

work

the

Washington,

office is important
provide mech¬
to
con¬
vert other post offices, it will be
a testing ground for mail proc¬
essing equipment of tomorrow,
and it will be close for postal
engineers to inspect and im¬
post
It

because:

anization

will

experience

prove, and will
tional showcase

serve as a na¬
that visitors

everywhere

may see

what

the Post Office Department ex¬

pects to do in
offices

many

Full text of Commercial and Financial Chronicle : April 9, 1959, Vol. 189, No. 5836

FRASER