Full text of Commercial and Financial Chronicle : August 1, 1963, Vol. 198, No. 6286

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

EDITORIAL

railroads having

delay in

any

change

turn the

in

a

system that

a

matter that could

political

power

involved

unions,

here than

and stronger than

is all you get left.

market

becoming

cates equity

previous post-World War II recoveries.

I

investment areas bound to be favorably affected.

to

want

and

the

present

sist
one

degree

or

featherbedding, and they
which

interferes

with

carry
are

this

important

fully

aware

the

straits

which

in

well

as

the; railroad

on page

people

are

When

the

U. S. Government,
Public

on

at

some

to

Municipal

the Street:

On

much

how

the

of

place,
it

you

In

justified.

present "position

my

are

entirely of

a

to

give

my

reasoning

my

financial

com¬

and

the

of

read

good

a

quarters,

business

about

is

cycle

investment

and

of

completely

a

part

a

also

and

by

of for

many

has

in

perspective,

range

years

been

on an

When

the

the

to
you

longer

aforemen¬

try to operate

investment basis, acceptance of the stereotype

comprehensive analysis of

witnessing is the beginning

are

cycle.

new

grounds:for such
statement?

predict

or

are

very

in

sacrilegious or

a

Let

indicators

economic

consider

us

which

with

concomitant

of

in

iri

moves

minor

very

year

after

gains and

a

number

actually

de¬

August, stood still for two months and
again in November.

worked

in

April

of

hours

ber

and

1962

and

rose

and

a

peak of 40.8 hours,

a

declined

by October,
December

industries,

manufacturing

sensitive indicator, hit

40.1

almost

modestly

(Continued

steadily

to

in Novem¬
on page

19)

8 issue of the CHRONICLE will

closed-end investment companies.

*

MWNWM.
B! '

SfflJE

Dealers

State,

A.

Municipal

Securities

Lester, Ryons & Co.
623

So.

Hope

Street, Los Angeles 17,
California

Members

New

San

EXCHANGE

Diego,

Santa

Ana,

135 So. La Salle Street

Santa

Monica,

on

Southern

California Securities

Bond

TWX: 212-571-1414

Dept. Teletype: 571-0830

New York

Correspondent

—

V

MANHATTAN

Pershing & Co.

Chicago 3, III. FRanklin 2-1166

w

THE

Whittier

FIRST NATIONAL CITY BANK

Inquiries Invited

770-2661

Municipal Bond Division

dale, Hollywood, Long Beach, Oceanside,

MEMBERS

MIDWEST STOCK

Notes

,

Pasadena, Pomona, Redlands, Riverside,

DEPARTMENT

Housing

Agency
Bonds and

York-Stock-Exchange

Associate Member American Stock Exchange
Members Pacific Coast Exchange
~

Offices in Corona del Mar, Encino, Glen-

~

BANK
Net Active Markets Maintained
To

T.L. Watson&Co.
ESTABLISHED

Dealers, Banks and Brokers

Canadian Securities
Block

Stock

Inquiries Invited

Canadian

CANADIAN

Exchange

Exchanges
DEPARTMENT

Teletype 212-571-1213

25

BROAD

STREET

NEW YORK 4, N.

Y.

(

DIRECT

•

PERTH AMBOY

Dominion Securities

VIRES TO MONTREAL AND

Goodbody
MEMBERS

BRIDGEPORT,'

california

BONDS & STOCKS

Commission Orders Executed On All

New York Stock Exchange
American

diversified

CANADIAN

1832

Members

NEW

2 BROADWAY
NEW YORK

a

YORK STOCK

Corporation

Co.

1 NORTH LA SALLE ST.
•

Electronic

Industry

TORONTO

EXCHANGE

CHICAGO

40

Exchange Place, New York 5, N. Y.

Teletype 571-0880

a

normally

Manufacturers inventories, for example,

stock purchases and sales during the June

common

89 mutual funds and

we

my

of

Hours

to

upturn which

(but not all) believe is still under¬

unorthodox

then declined

Lawrence R. Kahn

directed

contrast

tioned trading operation.

are

months

of

clined

thinking by need

nature

viewpoint, I would like

stopped rising in July of last

I

largely institutionally
my

least

what

the cycle.

as

organization

this

to

the proposition that the

actually topped out in the last six months of

either

our

long

CHEMICAL BANK NEW YORK TRUST COMPANY




the

sacrosanct

phase

contrast

1962

What

MULLANEY, WELLS & COMPANY

NewYork
•

in

hear

we

from

present

consider

way

is

per¬

If

disgusted.

and

it

are

•

Corporate & Municipal

770-2541

want

the market today.

and

confuse, I shall set

most economists

and

When

they

to

rising the

bullish

are

still

oriented,

Underwriters

N.Y.

I

the

And that

and Public

Distributors

P.O. Box 710, New York 8,

economy

stereotype

first

the

deal,

number

was

Securities

phones:

not

that

context

the

Housing,

State and

BOND

In

economy

attitude could be

was

22)

quarter by

the

gloomy and

it is

QUARTERLY FUND SURVEY NEXT WEEK—The Aug.
contain

on

believe is

at

the

because of

(Continued

I

view

term investment nature and

elements of
that anything

as

this

today's

dealing j with largely a
trading clientele, I suppose this
In

practice in the railroad in¬

reason

follows

tired.

the

objectives

vigorous growth, will tend to weaken their position in
industry. It is for this

which

jp \\ are

dustry, where featherbedding had its birth and its early
all

longer term

one

frequently get left behind.

on

order

against

any

of

plexed

monopoly which enables them to in¬

another

in

have

to

business;,.'When

our

stretching out overly long and hence is becoming

standing

and get wages and working l rules which in

upon

is

thinking
In

own

the whole, when the market is going down, the bulk

bearish.

they, with the help of weak-kneed politicians have been
able to build up a

slant today

a

market

stock

variance with the general

set of

one

professional and selective; and indi¬

more

It

stimulants:

While I do not

the unusual for its

munity.

industry.^ They know full well that

one

or any

any

business

new

a

rising family formations and capital spending; sees upward

move.

union,

one

Copy

a

It probably also is for all but

wishes

one

you

have been in

we

Mutual fund expert stresses advent of two major

right in saying that much more

any

if

crowd,

optimistic.

are

cultivated

cycle since February last and that the upturn will be longer

most

a

Cents

clear and independent viewpoint must be

a

in

typical political

make

The union leaders

50

and nimble speculator.'

success

people

is

>

sharply disagrees with infiltering stereotyped

same

arena, now

adroit

believe in the original or

of the Faculty of Pace College, New York City

unions, always skilled and always active in the political
1

:

ber

pessimism in contending

public "so that the people themselves can see what is
or words to
that effect. Quite obviously the

...

the

Factual thesis

what,"

A

is generally deadly.

sake,

gestion comes from the unions that hearings be held in

A

By Lawrence R. Kahn,* Senior Vice-President, National
Securities & Research Corp., New York City, and Mem■

of the
labor unions against them. Already it has been an¬
nounced that appropriate: committees have let it be
known that they believe "the heat is off," and they can
discontinue the consideration of any action at all at
least for the time being—and hope that they may not
ever feel compelled, no matter what happens—to
have
to become involved in any way. Meanwhile, the sug¬
in

Price

Bodes Well for Stock Market Rises

real choice agreed

no

is
costing them over a half billion yearly because of labor
union featherbedding work rules. : The reason why they
had no practical choice is eloquent of the all but im¬
possible situation by which the carriers are faced. Mem¬
bers of Congress simply have no stomach for any part
another

to

7, N. Y.,fThursday, August 1, 1963

New Business Cycle Now Underway

As We See It

American

The

New York

-Number 6286

198

Volume

MUNICIPAL BOND DEPARTMENT

bank of america

WHitehall 4-8161

N.T.&S.A.

Area Code 212

SAN

FRANCISCO

•

LOS ANGELES

2

The Commercial and Financial Chronicle

(434)

The

Coordination...
■

The

by-word

Hanseatic
without

t

■

New

of

York

in the investment and

For

coordina¬

through

aim,

l. McAllister

p.

broker

the bank,

you,

dealer

or

1962.

f)icksbn & Co., Inc.,

Life

Insurance

evaluate

Over-the-Counter

/

surance

"Call HANSEATIC"

NEW YORK

V

;

the

Company

stock

of

too

:

find

difficult to

behind the market if

CORPORATION

American

Boston

Exchange

■

in

Market

and

of

of December 31,

as

of

1962.

majority of which

Continuous Markets

price

Tradi
&

The

the

Life

quotations and

in 1929.

It has in force

a

American Furniture

ordinary

and

marketing

credit

Craddock-Terry Shoe

life.

The

overall |

1962

of

up

STRADER and COMPANY, Inc.

1961

over

157

$108,-

13

10% gain

a

increase

^in ordinary life, dehtial,

gain in credit life.
1962,

the

and

The operating

gained 35%

admitted

the

io.7%

five-year

Continuing Interest in

36%
oo/o.

on

•

mvestment

$4,024

Richardson Co.

per

share grew to

the

high, of $354,150

1962.

in

retail

and

Four

1938

to

1962

creased 88 for

BOENNING & CO.

41 for 1.

Established 1914

Broadway
York 6, N. Y. I
,

CO 7-1200

value
is

in-

penditure

still

reverse

for

The

oj

j-

Qn

1,

the

before

high

the

as

$10 Per share, making

present stock $45 per share

the

split

reverse

basis

At

Quickly By Using Our

At

QUOTATION

tTQlnia

taxes

and

vaiue

and

was

$950,000.

the

with

sales

of

five

the

Wing
posing

of

l

to

if

RECORD

selling

Pyramid Life

as

at

about

27.2

are now

times

equitable price

1962

v

is

being

this facility,

Great

(Only $45

(Single Copy

-

mid

year)

per

is

selling at 11.2

1962 adjusted

$4)

—

Life

times

$7.5

ferred

in

earnings. On growth

and

water

the

give
on

well

bound

the

you

all
as

publication
monthly

listed
those

will

prices

securities

"hard

Over-the-Counter

Write

-

or

to

as

find"

quotations.

an

1962

of

9.8%

that

the

25

from

against

29.1%

the

1963

4%%

stock

of

and

stock.

first

the

a

estimated

The

No

reverse

much better

split

service

income
area

of




v

$28.8

million
pre¬

shares

comes

from

agricultural and petroleum aetivi-

buy at

ties.

The

highest

quality

wheat

5,500 Stocks
The

Monday Issue of the Com¬

mercial and

in

net

Financial Chronicle

contains the price range on

than 5,500 stocks traded

Market.

with

record

of

dividend

utility

ments,

redemption

permanent

market

of

mately

$5.00

per

share

approxion

the

Yj.

per

share

common

$1.76 in I960," $1.85 in 1961

to

350

-■ -"■■V

-'j

and

The COMMERCIAL and FINANCIAL

:V

CHRONICLE

1962.

At

'

iV.

Q. R.

Counter Market of $40 the current

20, v and
over

the

.

ratio

is

dividend

less
-

than

yield

is

3.6%.

The

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
25-Year

160%

increase

generating capacity in

in

electric

1963

Performance of

35 Industrial Stocks

wall

grain sorghum,

power and

permit savings in

as

a

no

circumstances

solicitation of

an

to

be construed

offer to buy,

any

as

an

offer

security referred

to

to

sell,

or

herein.)

more

plus the

for

pur¬

ON

REQUEST

National Quotation Bureau
Incurporated

use of the

efficient and lower cost gen¬

erating facilities.

:

25 Park PJace, New York
?, N. Y.

in

price in the Over-the-

chased power,

(This is under

and

quar¬

supply the increased demand

other

announce¬

calls,

were

quarterly

in the nation together with corn,

alfalfa and

comprehensive

•inking fund notices.

FOLDER

present

the

Other features

moat

is

more

on

exchanges and in the Over-the-

include the

compared

additional

the recent

at

the

Price Range on Over

1963

outstanding

when

price earnings

principal

...V

The 1Q%. increase

stock

terly paid in 1961

Gas and water

are

Liquid

DIgby 4-2727

mort¬

February 1963 from the 300

$313,000.

reason

purchased

Pyramid Life stock in 1961 at $10 jKansas
share before the

1963

—

Exports —Imports—Futures

$14,344,-

1,247,305

increase

increased

6,863

REctor 2-9570

\

for

stock, pro-forma capital¬
consists

50%

were

■

who

Park Place

New York 7, N.

for

Refined

—

a

con¬

sale early in

million

Earnings

,

department construction expendi-

for ;tures

Raw

1965.;

and

customers in five communities, all

1961 .to

It stands to

investor

should have

WILLIAM B. DANA CO.

growth

Pyramid Life.

per

calls

average

SUGAR

financing is anticipated until after

tele-

to

5, N. Y.

sta¬

Bend, Kansas,

and

small

plant.

isolated

service

figures these four companies show located in Kansas.
This

and

budget provides

common

very

Natural gas service is provided

nities

STREET

constructed

and $2.06 in 1962. Dividends
adjusted earnings, whereas Pyra?to 5,424 customers in 11 commu-.
.

WALL

NEW YORK

kilowatt

Arthur Mullergren

common

be obtained.;

can

99

the

-

earnings

LAMB0RN & CO., Inc.

prior to Oct.

long-term debt, $6.5 million

years.

fair

.a

event

60,000

new

After the

ization

"

administer

phqn<v exchanges

Year—1963

placed in service in May 1963.

common

net

accordance

unprofitable,

the

bonds, $2.5 million 4.80%
preferred stock and 113,811 shares

policy of dis¬

company

/I
difficult

with 'nnrl
!and

in

74th

Our

dam¬

gage

^

last

in

gross construction cost of

were also disposed

were

the

000.

Three

Ka

$1,290,000

liquidation

serve

near

struction

exchanges (1 in Mis-n

A

$10,879,000,

in-

oyer

St, New York «, N.Y.

Telephonei WOrth 4-8088

Total gross capital expenditures
for the year 1962
amounted to

?294000

<,w

These

adjusted

o{

CQSt

of

2

wjthin

±

value

stocks

same

after

in

PRINTING CO.. INC.
180 Cedar

95,000 kilowatts net capacity gen¬
erating unit
costing
$9,470,000,

the company

net

a

845 ^bscribers

The records show that four life
company

for

<of

that it sold at the highest point.

insurance

homa

sourf

s

approximately the

lg58)

APPEAL

provides

of

canceled

station

tion

1961.

over

and

is expected to be in service about
Oct. 1, 1963.
"
v

15

other small

the

shte
tZoTfs
mately $25apeer
$25
snare, the
stock
Service Your Accounts mately
QXTQilQhla
QhDiit
hQlf
tnfl
available
at about
half
the

3^ ^1962

20>

its

1>ook

on

per

10

steam

$2,000,000 annually

with

nearby to

made

revenues

kilo¬

53,000

-capacity, $7,423,000, generat¬

ing

addi-

was

1973.

net

telephone" exchanges
serving 8 224 subscribers in Okla-

split and the stock dividend sold
as

Telephone

Feb

sold

paid in 1963).

stock

common

igg3

sp}it, bringing .creased

!hoe total number of shares from
inJ
10% stock dividend
*

0{ $1151 000

20-year

a

contract

and

contract is

in 1962i and $lj393>0oo is
budgeted

In 1963 the company had

5-for-l

a

111

the

i; whereas it

of

ilia

years.

Light &

38,000

revenues

provided

ages

prevailmg prices this investment
;tional exchanges are to be conis still worth around
$163,611
In verted
t0 dial by
end of 1965.
other words, from the low to the
telephone utility construction ex-

Rudd Melikian, Inc.

proc¬

power,

hour

This

thereafter

communities'

dial.

provide

per

for .1963

com-

industrial,

Missouri.' Twenty-eight (24,470
telephones) of the 42 exchanges
automatic

,

branch offices

Kansas,

Western

electric

estimated

other electric utilities and

25

of

Kansas.

Prided

are

our

Helium Corporation extraction
plant to be located near Liberal,

are

jn

At

to

plants

18,000 gallons p^r minute of cool¬
ing water to the new National

resi-

33.4%

10.2%

.

total value, at

a

rural,

in. ties in
Iowa and

Mobile, Ala.
Dirept wires

City,

carcass

Liberal,

1962

to

pounds

for 41>925 subscribers in five com-,
mumties in Kansas, 12 communi¬

Pyramid Life In 1938 at 75 cents

Keyes Fibre Co.

LO 8-0900

of

provided to<

(144

June

watts

of kilowatts to
251,300 kilowatts durr
;
^
1 .
jng 1963.

v

212 571-1425

the edge of the world's

on

contract

Net generating capac^e increased from 96,300

,

& Co., Inc.

is

divided 34%

only

Exchange

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

lo¬

are

Dodge

Telephone entered into

•

period

'

■

TELE-

NATURAL

3 3% other.

c^sed^^anf the'suX and
rc^rvpc:
reserves

8.4%

assets

this period

over

time.! Over

developing.

In

in central Kansas.

were

mercial,

gain increased 109% from 1958 to

Private wire to Shields <£: Co.,
New York City

from

largest cities served

reveriites

to

population in the past ten

Concordia, 1 Great Bend, Dodge
City> and Liberal. In 1962 electric

65% in group life, and about 4%%

LYNCHBURG, VIRGINIA
LD 39
"
TWX
Victor 6-1333
703 846-0920

wholesale)

Exchange

public munity^served by the company,
having more than doubled its

ELECTRIC

from

service

Stock
Stock

of growth that

from

communities

The four

29.1%, made

was

4%

American

York

largest gas reserves, the Hugoton
field, is the fastest growing com¬

Telephone

approximately 75% of its

' revenues

Electric

in insurance in force for the
year

All Issues

&

facilities

adjacent

essing beef in local
is

GAS, and 2% from WATER.

000,000 group life, and $188,000,000

Bassett Furniture Industries

::

Kansas; and a; trend toward

diversified

a

a surge

operations, '> 19 %

$353,-

life,

(Page 2)

New

Members

versification. Livestock feeder lots

f

Co., Kansas City, Mo.

Light

RfHKF Si fin
HUUdt tt UU.

Members

ly. Irrigation is resulting in larger
stabilized yields and further di¬

George K. Baum

PHONE,

000,000 of life insurance, including

$57,500,000

Co.,

small grains are raised extensive¬

fairly wide

a

CtFINFR

HAnover 2-0700

is

stock

f

Western

1962

Com-

over

Co.

New Orleans, La. - Birmingham. Ala

Light & Telephone Company

derived

-

Insurance

Bought—Sold—Quoted

Trading

excelf

Over-the-Counter

enjoys

Company is

of Charlotte began business

pany

Call us First

BANK &

The

years.

utility with

5% under the year-

1

Telephone

Mesler,

Kansas City, Mo.

located

slightly

were

&

Dept., George K. Raum &

reasonable

rule show

a

p

Western

This is

quoted..

as

Pyramid

Virginia Securities

New

for

•

Light

—Myron' D.

myron D. mesler

whose

approximately *10% of the total—

end

Philadelphia' 3, Pa.

Western

de¬

distribution.

lower in price May 31,

were

none was over

The Alison Building
Rittenhouse Square

as

traded

period

price

under the year-end

L. E. Carpenter

is

Jer^t growth. records, if held for

1963 than the year-end quotations

a

A

Pyramid

Company

wait

stocks

ance

177 life insurance

the

Committee, R. S. Dick¬

long-term growth since life insur- '

quoted recently, only 18

was

stocks

of

Louisiana Securities

&

cated
total

a

stock

World. Wide Wire Service

R. F. & P.

of

t

companies

York 4

•
Los Angeles
San Francisco

Chicago

•

Philadelphia

to

watches

over

Of

1231, 32, 33, 34

—

willing

of

performance
rf.

Telephone: 363-2000
Teletype: 212-571

Insurance"

period

companies and their
a

Co.—H.

Insurance

CoM Inc., Charlotte, N. C.
(Page 2)
,
':
:<
*•

\

stock

common

is

the individual

Member

Stock

one

ecutive

years.

Established 1920

60 Broad St., New

in-

that

one

Life

McAllister, Chairman of Ex¬

son

purchased by the investor who is

point of earnings, growth, type of
insurance' in force, etc^~ it is npt

Hanseatic
Associate

life

a

growth that

signed for growth and should be

from the stand-

company

Alabama &

Selections

.

Although it is difficult to actually
Remember, when it's

the

v

■

.

The

Life

Pyramid

stqck with

same,

Charlotte, North Carolina

best

the

possible.

service

Pyramid

the company has had for the year

of Executive Committee

R. S.

give

tion, to

Thursday, August 1, 1963

Participants and

Their

L.

Chairman

.

advisory field from ail sections of the country

participate and give their reasons for favoring a particular security.

At Hanseatic it is

.

This Week's

of experts

Over-the-Counter

trading would be extremely

our

•

Forum
A continuous forum in which, each week, a different group

,

Corporation.

it,

difficult.

•

•

'

I.

.

46 Front Street,
CHICAGO

New York 4, N. Y.
SAN FRANCISCO

Volume

The Commercial and Financial Chronicle

Number 6286

198

Passenger Gars Put

(435)

CONTENTS

Glow

a

I

:

Thursday, August 1, 1963

ulCHTfnSTflfl

On Turnpike Revenue Bonds
PAGE

City Expressway Authority, and the New Jersey

Toll

:

bonds

revenue

as

McKelvey takes
-

■■■

whole

a

! -"=

■

currently

For Stock Market Gains____-Lawrence
v"

-

;■

selling

are

following

close to

at

Passenger Cars Put
Revenue

Bonds

...George

-

Commercial Banks:

Ira

than the previous comparable peabout the nod.
And Pennsylvania East-

article

an

billions of dollars worth of turn-

(and similar) revenue bond

pike

were

in

the

hands

of

the

alwas

a

note

in

sour

was

evi¬

In

fact,

dent.

running

20%

The little Jones

allied

and

started by say¬

moving

into

"the

one can say,

issues

ing, "When the

could

be

1956 be¬

fiasco

sparked the thinking.

gan

it brought

with

vestors

what

it

I.

McKelvey,

Jr.

almost

a

olution

of

bonds.

Previously, scrambled for,

rev-

posed that

then

and

now

with

unwanted."

the

come

Hindsight Doesn t Help

in

23%

a

over

.

~

fully

yet

Promising
Bank

It

the

back,

state

then.

traffic

and

business,

were

only partially

open.

exception

the

of

project, those that
giving

were

themselves.

pike

for,

even

improvement in 1956

same

did not

1955

recently
sion.
at

20%

It was

below

the

the

above

line

grossing 7^%

more

State

Parkway,

j0j.

esti-

as

come

full

behind

year

with

to

mile

link

from

the

New

York

City

to

there

Kansas,

were

The Gar-

some

Maine

of

year or so

year.

road

was

income

and yet,

various

Oklahoma's

sec-

Turner

about

and

21, 1956
Financial

.and You

.

•

,

■

,

•

•'

■•..

•'

-

Webb

Common & Warrants
: '

V."

•••

.

V ■

.

•

„

-

-

33

-

(The)

SavAStop

16

'
•

Mutual

Funds

15
T

•

-0'

V

Marrud, Inc.

4

Our Reporter on Governments

18

Public Utility Securities

16

Securities Now in Registration

26

Prospective

31

Security

•■;** 31

17

Offerings..

Security

Salesman's

(The)

2

Singer, Bean

sMackie, Inc.
!

HA 2-9000

40

Exchange Place, N. Y.

Teletype 212 571-0610
Direct Wires

Corner

18

Chicago

Cleveland

Philadelphia
St. Louis

of

Trade

and

Industry

(The)

14

4V2%

issue of the
Chronicle.

Tax-Exempt Bond Market

to

Los Angeles

San Francisco

Washington

6

Washington and You

36

The

-

COMMERCIAL

and

FINANCIAL

Published Twice Weekly
WILLIAM B.
25

Park Place,

CLAUDE

D.

better

to

issues"

the

new

issue

which

Commer¬

reflected

DANA

wanted

Continued

to
on

New York 7, N. Y.

WILLIAM DANA

REctor

SEIBERT,

page

New York

2-9570

to

9576

J.

MORRISSEY, Editor

Trap Rock

1963

Thursday (general news and advertising issue) and every
(complete
statistical
issue — market
quotation
records,
corporation news, bank clearings, state and city news, etc.). Other
Office: 135 South La Salle St., Chicago 3, 111. (Phone STate 2-0613).
Every

a

20

Office

Treasurer

Thursday, August 1,

the;

create

Patent

SEIBERT, President

rev-

and

S.

COMPANY, PUBLISHER

right back

market

CHRONICLE

Reg. U.

GEORGE
enue

States
*June
cial

■

8

an

And the "we don't like toll

27% ahead of estimated

and

,,

■■

,.

Security I Like Best

additional
Petersburg
Calumet Expressway
and Illinois $64,000,000
retiring $37,467,000 a
earlier.
1

borrowed

running 80% ahead of the previous

9

_

■

State

tions in late 1955 the revenue was

of

8

utory to long distance travei.

delayed opening in $3,600,000. Richmond

openings

Recommendations

the

its

$6,150,000,
$13,000,000
after just

to

J.F.Reilly&Co.,Inc.

36

completed

sections of the roadway,
due

1
17

Observations

a

Maryland Tunnel and the Virginia

with

estimates

that caused by

(Editorial)
Stocks

News About Banks and Bankers

Connecticut, Kentucky,
and

-

Market

Texas, Will Rogers in Oklahoma,

Richmond.Petersburg

■

•

Indianaj

Massachusetts,

Tunnel both of the latter contrib-

a

i

;

,

See It

From Washington Ahead of the News.
\;-7
•'
•'
'
•
V
- '
'
5
Indications of Current Business Activity

Another upsetting factor was
roadway,; although 8%% behind that several projects had to come
estimates, was on its way to earn- back for additional bond issues,
ing its full interest charges.
The as West Virginia had to do in 1954,
Thruway in New York was 15% due to rising construction costs,
first

CORP.
21

Dollar"

the

The Thruway
build including

than in 1955
opening

GREAT AMERICA

15

-

Einzig: "Further Action Needed in Defense of

Turn-

was

for the first six months.

DIGITRONICS, INC.

Trust Co. Analysis

Dealer-Broker Investment

Extension ^
wasVthe'

three

Then

niinois>

operating

estimates,

to

vital

Yonkers

Exten-

engineer

Jersey

County

gtm had roads

in from its

was

New

Syivania Turnpike.

The New Jersey Turnpike,

shade

den

Turn-

Augusta

However, it

mates.
a

revenue

v

Connecticut

to

Coming Events in the Investment Field

eveh close to

j^dge to connect with the Penn-

the comparable 1955

opened

The

gtili

was

of

its original project and

on

EQUIPMENT
13

period, the in-

come

Hudson

showing an increase in

was

getting

was

income.

operating

account

According

Bank and Insurance

projects still unopened, for

maily

Virginia

Maine

The

revenues over

period

were

good

a

&

As We

investors to speculate about as to

But, with the

West

Level,

Regular Features

not

And, let it be said, there were

were

some

AMERICAN SAFETY

Del

existed

that

12

Banks

a

Many of the roads were hot
for

open

mind

of

KING'S DEPT. STORES

superim¬

covering interest charges.

from this

even

^

on

First National City Bank

In¬

climate in which to look for unvantage point of seven years later, favorable factors rather than fa¬
it is not too easy to account for vorable ones,
Looking

Sproul 10

Worldwide Currency Erosion Documented by

Virginia

the financial pic¬

upon

ture of the roads which

feeling about turnpike

they were

West

the

.

have looked at their

may

record

poor
G.

amounted to

that

i

YORK

4-6551

5

Business Activity in Connecticut to Remain on

were

doghouse."

Dept.

NEW

WHitehall

4

:

H. Frederick Franklin

that turnpike

was

revenue

Securities

STREET,

Telephone:

Cobleigh

Head, Amyas Ames, Challenges Saxon

Business

with the advantage of hind¬

sight, the truth

that article * it

WALL

Long-Term Capital Sources for Small-Medium

1955.

over

U.

Allan

_—

Underwritings by

-v

estimates with

over

increase

Regardless of what
even

re-reading

year

Economy
IBA

Beach Expressway on Long Island
was

A

in income.

year

investing pub-

original

project,

1 i

c.

the

Obsolete

3

Payments Balance Basic Cure—Strong Domestic

almost 5% ahead of the preceding

which

issues

West,

though 14% behind estimates,

j

DELHI TAYLOR OIL

Early in 1956 the writer was asked
prepare

they call 'em!)'.

Supermarkets for Credit

comparatively little, dependence on commercial vehicle tolls.

to

McKelvey

Roger W. Babson

'

I

f

names

Turnpike

on

Checkreins Minimizing Cost of Living Advance

free toll roads now able to meet their debt coverage with none, to

;*<

•

Glow

a

99

Particular attention is paid to the im- )

discussion of the uniqueness of the almost commercially-

a

1

(The

J pact of passenger cars as an unpredicted source of revenue strength
'■

STOCKS

R. Kahn

f

close look at their performance and the different

a

for their progress.

reasons

•

Now that they have undergone maturation, Mr.

their record highs.

-v

'

-■

call

New Business Cycle Now Underway Bodes Well

Highway Dept.
V';

ANY

,

Jersey, and Financial Adviser to Garden State Parkway;

Atlantic

COMP

ND

Articles and News

By George McKelvey, Partner, George McKelvey Co., Sea Girt,
New

3

Corp.

Monday
,,

Copyright 1963 by William B. Dana Company
All.rights reserved. Reproduction in whole
without

For many years we

have

specialized in

PREFERRED STOCKS

In

Founded 1868

|

25

BROAD

United

U.

States,

$80.00

Possessions

S.

in

year;

per

countries

$87.00

strictly

or in part
prohibited.

York, N. Y.

RATES

per

and

Dominion

of

members

Canada

In

United

Union

States,

$20.00

U. S.

per

other

countries

Bank

and

Possessions

year;

$23.50

in

per

and

Dominion

Pan

$83.00

American
per

per

year;

members

of

of

Canada

year)
Pan

$21.50

American
per

Record

PUBLICATIONS
—

Monthly,

$45.00

TELETYPE 212-571 0785

Note—On

year

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made

in

for

New

BROADWAY, NEW YORK 6

(Foreign
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account

remittances

INCORPORATED

39
per

Postage extra).

TELEPHONE HAnover 24300

! V. FRANKEL t CO.

year;

year.

OTHER

Quotation

of

year.

THURSDAY EDITION ONLY (52 issues

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is

SUBSCRIPTION

other

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permission

class postage paid at New

MONDAY AND THURSDAY EDITIONS (104 issues per year)
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the

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funds.

in

and

the

rate

of

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exchange,
must

be

Teletype

212-571-0500
212-571-0501

4

The Commercial and Financial Chronicle

(436)

.

.

Thursday, August 1, 1963

.

ity to the market in AVCO, Bruns¬
Iwick, General Motors, and Stand¬

•

•

•

Oil

ard

other

of

New

hand,

Jersey,

the

the

on

Specialists

Checkreins Minimizing
'

trad¬

Cost of Living Advance

ing in Telephone, IBM, ^nd Korvette

allegedly

from

SPECIALIST

THE

CON'S

AND

PRO'S

with

functions

"items," the Stock

other

Specialist

Exchange

governed

are

individual

sharply

gets

capital

their

by

divergent reactions from the SEC's

gether with great disparity in such

Special

resources,

Study.

time," keynotes

"At the present
the

major

"the

American Exchanges

for the

are,

curities

various

and

allocated

are

localities

'posts'

or

buy

sell

or

orders

be

may

time during the trading ses¬
immediate

for

sion

matching*buy

later

or

there

Since

cution.

may

exe¬

not be

.

and sell orders from

public customers at the same mo¬
ment,

continuous auction mar¬

a

ket requires

ing

during

sell

and

in

all

in

strength

passivity to de-stabilization.

port,

were

actually

their

occasioned

"pounded

selling

Thus, from the

get

we

lier-in-the-year

selling-on-theopera-

Hons, highly irregular, at the time
daily breaks.

basic

cited

problem

Study is that

function

has

important, if not

as

his

than

so,

the

the years the

over

specialist's/dealer
become

by

more

activity.

brokerage

This conflict of interest, the Study

claims, has been further extended
by

extensions

function

the

of

brokerage

that of handling

beyond

market and limit orders

for other

brokers.

an

be

essential mechanism for main¬

taining
kets

continuous

auction

and, in broad terms,

to be serving its purposes

mar¬

anpears

satisfac¬

feel

mission
is

to

likewise approvingly,

And

Chairman Cary

SEC

ment be

the

of

capital

This in¬

un-stabilizing factor dur¬

The Commission's

findings

con¬

in

this,

re-

.last

space

prelude, indicate, in
Specialists'

that

"the

basic

professional
interval

most

In

the

1961

29,

to

a

useful

....

•

Average

of specialists

ventory
half.

From

until

May

tory

25,

the

D.

Side

the

of

Medal

However, the Report also
important

the

comes

negative

"re-1

It finds that in most

cases

specialist

trading

does

supply

25

"has

system

widespread abuses

disclosed
patterns

or

illegality. Nevertheless, serious
have

inven¬

about

was

30%—

declining by

greatest

points

decline,

of

almost 6%, the

or

came

purchase

This

in

16

On May 29, the day of

Specialists
net

May

found

been

eon-

through

balance

with

of

a

6.7%.

purchase balance is deemed

Accordingly,

Study

has.

recommendations,
the

full

a

en-

Commission,

capital require-

The

Specialists,

dealer

restricted

to

cialist
ket

pacity

of

specialists

price stability is
ited

one."

tendency,
risk, and

tential,

to

The

to

provide

distinctly lim¬

a

Study

because of
more

ca¬

reports

the

greater

limited profit

neglect

a

po¬

stabilizing

ef¬

forts in inactive issues.

Finding

that

the

specialists'

the

Study

what

activity during normal

periods,

and

its volume
on

mar¬
was

the day

after President Eisenhower's heart

attack

in

necessary

gamut from the

ing

against

to

their

that

on

Black

dealer

Friday.

performance

day lent depth and stabil¬

of

manner

accepting

The

many

these

here
the

and

Like

dangerous

in

risk.

great

and

and

devoted

-

indicating

the

with, and
of,

essentially

are

At

large

specu-

always

the

ac-

entail

least,

very

a

included.

all,

specialist

.

the

WE
MERRILL LYNCH,
■ i
PIERCE, FENNER

:

products

many

.

,

nobody

.with

^

About

Pensioned

from

a

Workers9

F

,

when the cogt

f u

workers,

.

.

.suffers more than thos*
fixed income, such

to

grumbling.

cause

Prices

Versus

seem

Incomes

as

those

:

price

Beyond that, too, incomes have

been sweJbng at
than

a far more rapid
retail prices of

have

way

between

War

II

and

Korean
cost

since
at

u.

span:

Even

the

S.

of

end

they show

time.

the

consumer

of 5.4%

But

incomes

They

any

is

have

up

take

for

inflation.

But

'

'

HAVEN,

least for

at

Competition

the

a

Perhaps
checkrein

Has

the
the

on

index

over

look

been

competition,

stock

&

York

Stock

consumer

the

Stephen
New

& SMITH

INC

,

both

^7 W1"

looks pale beside the up-

tually

impossible

for

am

Church

fi/ea\ed Co

announce

t/iaC

a

a

Hice 0w€teden t
t/u'A ^So j</i cjwt/icn.

QtmoCoit

Fahne-

G.

and

other

appointment

IVfcKeon

as

an¬
0

f

in

New

Street.

Dominick

Special

special

Haven, Conn., 177
He

partner

Scranton & Co.

was

of

formerly
Chas.

W.

,7*

Period ahead, and it will be vir-

jump

book¬

have

domestic

prices from 1957 to 1959

abrupt

&

Dominick

Incorporated

England Representative, with

offices

a

Exchange

exchanges,

price

Rivalrv will become

Co., members of the New

principal

Value

powerful

the past five years has

same-and foreign

127%.

Its

most

only the more intense over the

and
—

are

considerable length

a

30%

A aA ieen e/ected

Conn.

there

in

rather

Exchange
a

expect

factors which will be likely
to hold it within reasonable check,

World

that the

climbed

e

Stock

literally

to

reason

many

beginning of the

living has moved

that

be

Tracing „tha o£ time.
1947, about half

the

War,

of

to

a reversal of this long-term wage-

,

Ho-Ching Yang

nounced

STREET, NEW YORK 5, N. Y.

kow

were

advances were
*

'

<

.

advanCes

'7

with gambling rules.

the

McKeon With

Marketing Department

PINE

n

,

maker.)

1

course,

0
*

This

Fahnestock

"

of

,

should be emphatically

concern

NEW




to

'#,

■

War

!

good? a"d f
figures back to

throughout

concern

prominently

(After

block?

'

have,

is the minimum price of the Agen¬

cy's

'

costs

"Government guaranty" disclaimer

:to sell

70

held"

believe, highly

we

must

and

,

could

'

Living

■

trading minutiae

elsewhere

Report, are,

lative

•

World

is

in Order

pages

other

and

tivities that

•

con-

American

seVeral occasions, especially after

rate

investment-whitewashing

//

foreign

emerging in ; Western .Europe,
S?uth America,. Japan, etc. And,

us

open¬

"not

Caveat Emptor Still

The
Commission
Study com¬
plains of highly inconsistant Spe¬

impact

from

improved industrial standards

will bQ

economic

heavily

so

^ "This' is . a reflection of

maintain

orders.

i

While

P°rted

fifnirp<;

tell

own

ov^rseas a^e available to pur .cbb."7
course, been on the rise, long term, turners < at ; prices
considerably
eyer since the pit
Qf the terrible; below those of our native goods,—
depression of the early 1930s. On<a boon for the buyer' :

stock to continuing the ban

a

Governments

a

you

they

our

—

1955.

cialist

I

goods> but even to those being im-

business

snmp

average

And

™s applies hot only to

Show

■

only about 30% of that

on

present
the

history.

the quality of goods obtainable is,
on the whole,abetter, than
ever,

my

what

the

:,than

have been able to before

nation's

;our

have
more

realizing

like to pass along to

.at

ever

buy

would like to point out, also, that

>

Figures

fnunrt

in

to

money

were even

They

ago.

Hut here is something that;I go living on pensions, social security,
a
fair and orderly market; they
see commonly stressed in the or investments with a set interest,
should
also
affirmatively
have PaPers and magazines:
Over the After the end of World War II and
increased obligation to maintain Past five yeara, the consumer price after the Korean War, the swift
such market
all to be accom- lndex has moved ahead on aver--uprush of ; living costs hurt such
plished under a new broad Com- ,age only 1% a year' Whlle thls/people badly. Over the past five
mission
rule.
All
securities
i« ll°es re?f se?t s<™e P^ssure on;..vyears>, while the "pinch became
which a specialist is registered, it
7-V-? \
sboWs remarkable very faintly tighter, it did not
is recommended, should be main- stability when you consider that intrude so bitterly upon disposable
iw^ 4^4A!.
^Since 1939' the cost of livm
tained in a'single trading account.'Bllltc
7ing as income of those with fixed spendThey should be' prohibited from measured by the ^aboL Papa1^" ing power as it had in previous
servicing public customers. Furas skyfocketed 119%. So years>
ther public reports by specialists,
ls not surprising that the aver- . j am often asked whether the
including financial condition age. consmner has not suffered upspiral of retail prices and wage
statements/ also are called for.
seriously from the 1% annual rates that has persisted since the
Then, the Report, endorsed by boost of the Past flve years. Gams earjy 19395 win continue indefthe Commission, comes in with a bave simply not been big enough jnitely. At present there does not

reasonably

ing Floor procedure; running the

ordinarily the

surpriseci

of

spate of recommendations regard¬

...

snnn

should

it is contended,

further

be

functions

my

because f believe

you

family.

the

Group,

nature

T

0f

because it did not differ from spe¬

in

phrarv

thatYw0uM

djtion

.

a

trading tends to be de-stabilizing

the

surveillance and regulation by the

Exchange.

inadequate

by

What

Scouting about in

the

of

years

climb

,

about

"some"

stabilizing effect, but "in
significant group of stocks such

had stopped without
it.
/
•

cerning the system itself and its

by

for' five

than they

now

J

by

J.

market's
D. J.

cut

was

point,

specialists'

increased

about 6%.

with

that

:

Other

falling

was

from 731 to 654, the aggregate in¬

while

one."

turns."

speculators.

December

Industrial

dealer

function of specialists, that of pro¬

in

the

for

part similar to the general run of

in his transmittal

viding price continuity, is

The

conduct

opinion.

our

whether the long-term

or

that its examination of the NYSE

dorsed

lines

right

they

re-

week, the Special Study concludes

number

those

off

com-

consumers
had
simply, become
used to ever-climbing retail costs

of

/ Consistent with its overall

found

was

along

much

the Specialist Sysintroduction

cited

plaining

heard

not

actual

main

/

action,

had

I

quite awhile. I wondered whether

the

forms.

problems

at least tripled.

sufficiency

letter to Congress, cites the Study's
conclusion

i

task

that

preserve

with

tern

of

May 16, 1962, while the Dow Jones

torily."

T

A fe.w farswag° 1
£sar ™sh °f 24% 'n Psrsonal ™e
P-oPlegrumbhng
about the high
high for the same two-year spell,
cost of living wherever I went.
°tf.'llvl"g
wherever
I
went.
There is no question butbetter
that
The other
day it occurred to me American consumers
that

Study Group and the Com-

Specialist

/1962 Bust

an

The

no

./ Capital Insufficiency and the

to be

Preservation With Reform

ments

to

p

.

hear

war-down'with cushioning

"^addition
to the previously cited
call for increased

appears

likely to

considerable time.

a

in

cost-of-living pica, improvement in iucome and
quality of goods, force of competition, and the effective deployment
cf savings.

ear¬

caust, and particularly its 5-month

system]

long-run price

many factori

•

performance, of preliminary

clusion: "In its present form it [the

specialist

are

reasonable check —at least for

Notes slowdown

Specialist picture, consistent with

cerning that May-June, 1962 holo¬

basic

a

as

willing to concede there

are

A

sympathetic vein,

Report states

and is

hold it within

our

con¬

the

inflation

"net"

a

Roger W. Bahsou

Mr. Babson takas anoth:r look at his
predictions for

frequently

Study and

observation,

own

Bv

financial pinching.

by

of the severest

ing the mid-1962 market break.

!

Further in the

a

present minimum capital require¬

[Emphasis

y

as

specialist

and

who joins the orders

specific securities."

added.]

assures

Exchange

whose

is

interests

the main cog in the mechanism is
the specialist

the

image"

The Study recommends that the

sessions,

trading

the

"the

markets.

mechanisms for link¬

buy

the

of

system

the 'floor,'

brought to the appropriate post at
any

threatened

place

se¬

different

to

on

that

market

On the

<rather than 'call' markets.

larger exchanges the

conclusion

auction'

/continuous

part,

most

its

Chapter V on

to

Markets,

Trading

in

Group

Study

Special

introduction

leads the Study to the

range

issues, according to the Re¬

to¬

resources,

to

Some

down";
As

tended

14 WALL STREET, NEW YORK

July 31, 1963.

5, N.Y.

manufac-

Volume

turers

198

service

or

Number 6286

venders

domestic

via

and

The Commercial

.

.

ments
tend

automation.

hold

at

a

ther wage-price

counting

This

will

minimum

fur¬

be handled

Supermarkets for Credit
By Dr. Ir^ 0

Merle

in retail benkir.g, profit trends in the

Bailey

Municipal

Eond

has

joined

the

Department

of

Paine, Webber, Jackson & Curtis,
25

Broad

Street, New York City,

members

of

;

•

..

Stock
i t

h

of

Joseph

when

the

downtown,

were

big

marble

Loan

Department

record

of

82

tial

tribute

corporations

and

highly

vent individuals could

loans.

Loans

earners

to

sol-

qualify for

wage

salary

or

the

With

ww-

the

99

was

That's

honesty

the
and

quite
and

a

sol¬

fellow citizens,

our

*

of

With the present high cash flow

strong treasury

Mu

i

n

this

not

expansion of personal loan bank
II, banks have learned that
business has been most welcome,
—7

but

-

—

7

-

"affluent

our

the

since

years

—

——

were years ago; so

World

*

.

Bond

Depart¬

business;

Mr.

Bailey

with

L.

F.

Rothschild

&

Company

employment of bank

institutional sales¬

as an

as

eral

partner,

a

effective

Mr.

Stephens

has

been

Of

open

■

often

are

a

istered

of

of

Manager

is

other

the

,

of

savings account

a

The

purchase

durables,
loans;

provide

of

Clintcn P. Stephens
firm's

Towson,

finally

General

headquarters

>:■;
member

ty
of

the

;

High

sonal

loans

Lewis

the

representative

at

Banking Manage¬

ment Seminars.

house-

increasingly
travel,

to

vaca¬

motor

or a

Standing

stating that,

billion

on

industry to locate

to

expand

in

their

service

the

on

rate

competition

Bank
the

shares

to

years

have

be

jbe

_

proved

over

the

most

among

southwest,

earnings

augy

from

increasing

operations

its

from 7

$4.4 million in 1952 to $12 million

and,

good

in

losses

averaged

less

The
in

ran an

on

one

a

in

loan

year

re-

equal instalments, the

in

onTy"oT'o"^h| many"'sS
0f

retail

banking.

Checking

ac-

counts, without minimum balance,
with

charge

a

tion,

are

personalized

jngs

for

check

accounts

solicited

and

transac-

books.

Sav-

aggressively

are

monthly

rangement
from

each

standard, including

now

debit

transferring

checking

to

thrift

ar-

funds
accounts

ting cheeks to be drawn

The only

dividends
reason

by

rently
dends

why bank

is the fact that bank shares

not listed

on

exchanses

are

cellent market is

An

however

million .shares

ex-

As

,

widely

background for

Branch

major

in

branches

the

in

•

banking is, of

phenomenon

with

ness

meet

drawn.

course,

the

going

the
a

busiout

to

in

rapidly

areas,

gather-

customers

of

first

half

banks

gains
j

in

of

have
net

A:\;.,

1963,

in

convenience

banks,

making

own

with

savings

and

for

cial

bank

posits

loan

dollars,

of all

deposits"

are

(representing

4%

are

on

now

savings

prior

To offset

advertisement

banks
for

to

Puerto Rico, is

Trust

Seattle

First

Citizens

and

equities

euuu.es

are
are

an

available' a.
at

de-

whether^you're a^depositor ^
banks

1

can

<

.

.

permitted to
accounts

A

announce

Ahorro Ponceno, Ponce,

the opening of a New York Bond

activities in the underwriting and

distributing of municipal obligations of the States and Puerto Rico,
and in U. S. Government securities.

pay

against
pleased to

announce

the association with us of

1957.

gone

in

ROBERT M.

extensively

computers and automated

DONALI)

CONNORS

R. MAC NAUGHT ON

ac-

JOHN M. SIPP

of

our

Municipal Bond Trading Department
to

We

are

pleased to

the installation of

a

specialize in

announce
State

County

•

Direct Private Wire to

•

Municipal

and

Public Housing Authority Bonds

A G. Edwards
Members

new

york

stock

&

Our interest in these securities is nationwide, and we will he

Sons

pleased to render prompt bids, and evaluations on request.

exchange

DALLAS, TEXAS

r tt m T o

m N c D
6 O

WALL

NEW

Singer, Bean

TOWER

YORK

5,

N. Y.
Teletype

Telephone

a

Mackie, Inc.

212

HA

212

5-9350

Established

1895

Current

.

.

an(I good stocks may pxpand your

This office will conduct the Bank's

are

.

net worth rather consistently.

Vice-President

We

create

,

desirable personal assets,

WILLIAM G. CARRINGTON, JR.

•

17

ea/idngs
3 20^ and 3 50%

Department office under the management of

increase

National

avanao.e

and

commer-

time

on

Na¬

1962

^ between

stockholder,

the

as¬

Co.

bank

a

Georgia. In general, good

19Tmes

j0

se-

over

pleased to

higher operating costs,

.have

Arizona

Angel A. Sanz, President, Banco Crcdito y

corn-

savings

and

thrift

Island),

include

Cleveland

Island),
Bankers

;,

munities. Increasingly, commercial

compete

Co.,

bank
oanK

major

reported

against

National

providing

and

personal loans in their
banks

(Long

number

a

earnings

Bank

Bank of

by

current

analysts

Franklin

Trust

of

out-

owned

$1.68

tional Bank, Valley National Bank

main-

are

divi¬

by

'

Long

tained in most major issues where
several

Cash

69.

(which has just bought

markets

have been less publicized.

cur¬

were

welirFar^o

and trade

their Trading

4,-

are

outstanding
at

1962

now

eX^ Ov^tKunt^T
cordingly,

quoted
in

There

have

Other
deserving bank equities
favored

have

popular among individual invest0rs

billion.

shares

which

earnings of $2.88.

™ ^
hdd
by
not been
more

institutions,

Deposits,

$1

185,000

and

are

of about 7% in the past decade).

Personal

supplemented

stock

exceed

distri¬

when checks

years

its

cash

with interest

21/2%, the permissive rate for 20

by

with

charae^mrt'nTo"1!1,
,eCtkm
0f bank shareSl you mlght
charges starting only be
interested in knowing that for

Banks

over

often

generous

flex-

on a

the

on

bution

are

New

York

century

common., Then there are re-, standing and
volving individual credits permit-, investors.

na¬

than

this

splits.

Manufacturers

loans totaling

made

deducted

1962.*

and the opening




this

was

las is among the fast growing ones

Desirability of Bank Shares

a

de-

increase

dividend

$3

in

out¬

Republic National Bank of Dal- A

areas.

Most

arranged

and

today about 40%

these per-

credit

Trust

July 17, 1963

.7 $2

payable

6%,

customer

car,

a

consideration of

for

is fantastically
//V postwar
years,

Alex.

and

shares

rented by 2% in stock in the last
3 years. First National City shares
now sell at 109.

accounts and loans,

new

encourage

cur-

4 V2 %.

regional

of

by commercial banks

Hanover

is

on

suburban

The credit record

of

and

pending

deposits

Credit

1%.

Sons

with

sociations

have

Baltimore

are

basis

growing

and

in

v

personal loans

jng

boat.

the

of

frequently to fi-

or

funds

policy,

purpose

tions, college education

and

rate

discount

signature.

or

insurance

stocks.

or

tionally

Ron

of

Stess) ^

an

half; of

the

death

secured

Bond

&

of

loans by banks are

Club of Baltimore, Merchants Club
Brown

life

big business.)

a
a

loan is most

hold

with

a

run

maturity of the loan

motor car,

a

nance

Baltimore.
He

loans

discharge the unpaid

event

kinds,

the

repre¬

office

to

in

become

bonds

Branch

Md.,

is

banks,

by term

protected

passbook,

reg¬

Manager

billion

Collateral for security may consist

sentative, then
as

in-

(about

use

$19

commercial

™ker before

two

since

as

in

now

personal

V Personal

Brown

Sons

1952

throughout

amount of

about

by

hlsb'rome

with

Alex.

personal

a

have entered the bus-

the huge

billion),

has

associ¬

ated

on]y

should

The

share

per

13,040,000

true interest is 12%.

to

bank

Bank

v

generally from $500 to $3,500 (and

Aug.

1963.

standing)
year.

solicit

and

Earnings

mercial

City

•

sometimes to $5,000 or more), and

gen¬

prime

(on

iness,

well,

$5.80

were

1962

managements that hustle for busadvertise

affiliates

or

foreign countries.

which

energetic

#

rent

32

has

bank

Metropolitan New

on

insurance

firm

in

also created
by

The

resources.

advance

advanced

the

is

power

billion mark

York and 91 branches

bank. Growth

instances

total

104 branches in

pro¬

of the gross rev¬

of the average

many

in

service

now

and in

years

crossed the $10

by 1 merger, the First National City
Bank) was the first m^jor com-

balance

to

15%

1962

paid dividends continuously

& Sons, members of the New York

mitted

interruption for 150

in

$48

ad-

(in-

have

Stock

been

only

is

Individual

has

by

revenues

departments,

by

charged

National

stallment credit

Stephens

trust

Angeles)

(now

mess.

Exchange and other leading
exchanges, announce that Clinton

not'

stem

(Los

Bank

9% ; and Wells Fargo Bank by
20.4%.
l v
In specific, you might want to
l°°k into First National City Bank
which has paid dividends without

doubled in the past 10 years, now

the country

Brown

higher interest rate than the

earnings

in

Company of New York.

BALTIMORE, Md.—Alex.

substantially

a

net

equity holdings. Many banks

Loans

thousS:toTblaknsd

Admit Stephens

carries

its

term

Personal

Early

Department of the Bankers Trust

Alex.- Brown to

also

For

dependable and desirable of long

The
Merle D. Bailey

It

period.

and individual state laws defining
interest
rates.
If
the
interest

V

zation, he served in the Municipal

&

al¬

an

funds.

Before joining that organi¬

man,

1,

that

formerly

s's o c i a ted

P.

and

personal credit is

most riskless

was
a

the

screened

ment.

mass

highly profitable divi¬

a

of

sion

huge

a

increased

investments

and

earning

than they

market,

i p a 1

c

in

increased

tional

five

dividends, by 38%.

earnings

from

so-

of

in

in

and

the

exempt bonds), but from

enue

and

1962

by 7.7%; National Bank of Detroit by 10.9%; Security First Na-

banks

eluding increased amounts of tax

the

buying

however,

personal banking is

the New York

hattan

mar-

significant

In

banks

cash

loans

Banks

for

show

1963.

major

duce about

Business

to

charges and fees which

_

Manager

corresponding

the first half of 1963, Chase Man-

by 9.6%; Continental Illinois Bank

commercial

in

and

from

in

ciety"
,,

to

of

1938,

positions; of
great corporations, their borrow¬
ing need's are proportionately less

1920's,

War

bur¬

perfect.

Valuable

small, doubtful risks and unprof¬
business.-

since

repayment

100%

vency

frowned upon as too

were

emergence

by

Luby,

25

32%

mausoleums, where only substan-

the

been

a s

banks

time

a

geoning of installment

Exchg.,

announced

was

itable

the New York

now

period, 1958/62, net earnings

These
There

of

expected

year

-

bank shocks.

D.

in-

can

Growth in Profits

Earnings
are

Cobleigh, Economist

A swift review of the progrr:s

Paine, Webber Co.

that

15

by 7.2%; First National City Bank

increases

increases.

Bailey With

so

higher profit

on

gins.

industry, and the rewarding inve3tm:nt values afforded by sJected

M. D.

machines,

creased business volumes

markets.

overseas

technological improve¬

and

to

(437)

Commercial Banks:

likely, savings will be sought

wider

and Financial Chronicle

hike

to

prices substantially without losing
their competitive
positiqn in both
More

.

Resources

in

Excess

of

571-OB95

$196,000,000

6

The Commercial and Financial Chronicle

(438)

Comfortable Cupboard

Tax-Exempt Bond Market

As

able

DONALD D. MACKEY

BY

is

much

a

than

one

weeks back.

teresting

obtained

ipal bonds have shown some fur¬

improvement during the past

ther

the

continuing

week

bond

rate

jand

3VZ%

from

increased

discount
to

mar¬

by the re¬

ket advance triggered

not be

situation as regards his inventory.

out

He has less for

it

was

and what

little

a

Reflects Improved

Market

know

the

est

which

for

long-term

yielding

particularly

followed,

grade

high

3.40%

or

bonds

devel¬

more,

tax

spontaneous

oped

more

empt

bond business than dealers
witnessed

have

ex¬

experienced

or

since the market run-up last De¬
The

cember.

buying;-resurgence

attained such

proportions that the

prevailing

long

factors

were

versed

within

adverse

more

period

a

setting

market
less

or

of

the

few

days

thus

some

further improvement/

for

scene

-3.053%

a

against

Better

Although

in

turn-about

of

face

count rate increase

the

came

at

Index

many observers, it
be plaus blv explained away

of

ter

high point was

riving

from

creases

that had persisted through

late

of. rate

spring and

issues

market

and

serving the
ments

various

bond

in the

-Rarely
and

municipal

spreads

been

between

as

yield indices,
history

bond

during
July.

May,

been

while

at 2

absurd

3

This

an

been

extent

and

or

a

de¬

new

to

issues

cheaper.

but

the

market

better

tion

Worth

More

betterment.

some

As

issue volume has moderated,
investor
interest has gradually
to

available

market blocks

of

secondary

bonds.

Interest

has been particularly manifest
the

longer

term

higher

ducing
Being

the

total

dealer

stuck with
is

year bonds

a

one

of

year

average

40-

bonds is

quite another.
Thus, within

re¬

situation while

being stuck with 15

the

in

liability.

block

couple of weeks,

dealer has been for¬

in¬

likely

may

lack

of

be

convic¬

part of investors, in¬

are

factors

at

that

are

in

work

the

term

bond

levels

may

Already there

Calendar

through

issue

calendar A is

scheduled

August

is

new
now

California

•Baltimore, Maryland—
•Cincinnati, Ohio

Philadelphia,
•Chicago,

Pennsylvania
Illinois

New York

City

no

sizeable

negotiated

within this period.
an

easy

volume

of

the

far.

type

are

flo¬

involves

State

fact

ones

of

for

it

were

the

not

$197,000,000

issue put

the

on

dollar

some

quoted

markets.
The

thus

are

$100,000,000

California

(1965-199.0)

Chronicle's

at

3.42%

against 3.44%

as

Financial

bond

revenue

out

averages

and

ago.

The Kansas Turnpike statement

the

month

notable

gains,

of

June

the

interest

being

earned

was

against

as

1.41

times

1.26

ended June

30, 1963 coverage

was

against 0.9% in 1962. Fof

as

12

months

ended

was*

coverage

ended

June

The

for

the

June

30,

1.08%

as

months

12

30, 1962.

this

$34,942,000

of

bonds which represents the light¬
est weekly new issue schedule to

a

this

There

year.

handful of loans

to

a

Most

good

Last

500,000

of

these

start with

Garden
to

bid,

Michigan

made

was

Stuart & Co.,

by

bonds

headed by

Co, at

3.54%

a

The

interest

the

Halsey,

the

of

MacArthur

&

Weeks,

&

Co.,

Stranahan,

H.

A.)

bonds to

be

3.55%

Maturity

Bid

Co.,

Kenower,

Reynolds

Harris

for

&

&

Co.,

3.10%

various

$0
the

coupons,

/

Tahoe-Truckee

3.00%

ing

2.90%

Van

(1964-1987)

2.65%

at

3.05%

The

a

Ingen
net

3.0,0%

terest

3V4%

of

1981

3 20%

3.10%

3V2%
3V2%
3V4%

1981

3 15%

3.05%

1981

3 35%

3.25%

1981

3.35%

3.25%

account

3%

1930

3.23%

3.15%

J.

cost,

J.

B.

r"

C.

and

to

3.45%

made by

was

dealers
&

members

B.

net
a

group

headed

Cincinnati,

Cooley
'

&

&

by

Co.,

Co., Ira Haupt

Co.,

Continued

Cherokee
on

p.m.

1964-1990

2:00

p.m.

2,975,000

1965-1984 V 7:30 p.m.

9,330,000

1964-1983

Noon

6.400,000

1964-1973

10:00

a.m.

12,000,000

1969-1990

10:00

a.m.

4,119,000
1,000,000

1966-1983
1965-1983

10:00 a.m.
11:30 a.m.

4,082,000

1964-1993

2:00

p.m.

r

1964-1990

10:00 a.m.

9,000,000

1965-1998

Noon

Howard

County, Ind.„

1,200,000

1964-1983 .11:00 a.m.

Howard

Co. Met.

Comm., Ind.—

2,500,000

1965-1993

11:00 a.m.

Reg. S. D., Mass.—

1,875,000

1964-1983

10:00

38,000,000

1966-1987

Masconomet

New York Transit

Authority, N. Y.

a.m.

[Negotiated sale to be underwritten by Phelps, Fenn & Co. syndicate.]
.
<
:
St. Louis Co. Met. Sew. Dist., Mo.
5,000,000
1964-1992 1... 2:00 p.m.

Vero

1

1,106,000

Beach, Fla

11:00

1966-1992

1,200,000

a.m.

August 8 (Thursday)
Arlington Ind. Sch. Dist., Texas—

1,000,000

1964-1993

7:30

p.m.

Jefferson

3,450,000

1964-1988

8:00

p.m.

1965-2002

10:00

a.m.

Township S. D., N. J.„

August 10 (Saturday)
Utah State

University.

3,550,000

August 12 (Monday)

.

Goose Creek Cons. Ind. S. D., Tex.

4,290,000

Richardson, ,Tex

3,240,000

7:30

p.m.

1,425,000 -.1964-1992

8:00

p.m.

1:00

p.m.

St.

Joseph S. D., Mich

,

August 13 (Tuesday)
Columbus

&

Franklin

Co.

Dist.

Drain.

2, Mich.

County W. D. 1, Kan

Naples,

Fla.

—

Sibley Co.,

Auth., Pa

Minn

Southern 111. Univ
Sweetwater

Jr.

Coll.

Wash. Sub. San.

Dist.,

Calif.

Dists., Md.„

-

Wayne Twp. Sch. Bldg. Corp., Ind.

,

'

;

.

"

2,800,000

Johnson

Radnor Tp. Sch.

1964-1989

Met. *

Cos.

District, Ohio.——

King Co. Renton S. D. #403, Wash.
Local

Housing Authorities.-

:

>

1964-1970

1,390,000

1964-1983

10:00 a.m.

25,000,000

1964-1993

: 8:00 p.m.

2,000,000

1964-1988

11:00

a.m.

1,100.000

1964-1991

,

8:00

p.m.

1,240,000

1965-1979

11,250,000

1966-2003

2,000,000
4,000,000

1964-1987
1964-1993

4,000,000

1967-1981

;

11:00

a.m.

10:00

a.m.

10:30 a.m.
11:00

a.m.

.10:00

a.m.

1,200,000

1965-1983

116,160,000

_

11:00 a.m.

—

Maryland Roads Commission

4,935,000

1964-1978

11:00

a.m.

Woodbridge Twp. S. D., N. J.____

4,300,000

1965-1981

8:00

p.m.

2,351,000

1965-2002

2:00

p.m.

3,275,000

1965-1985

5:00 p.m.

August 15 (Thursday)
Northeast Mo. State Teachers Coll.,
Board

of

Regents

Richfield,

Minn

La.

Bd.

August 16 (Friday)
State

of

Ed.,

N.

page

34

E.

La.'

State Coll. Housing Sys. Rev
La. State Bd. of

1,200,000

1966-2003

11:30

a.m.

3,200,000

1966-2003

11:30

a.m.

1965-1983

10:00 a.m.

1965-1972

.7:30

p.m.

.11:00

a.m.

Ed., Polytech Inst.

Dormitory Rev., La

August 19 (Monday)
Dallas County
Las

Rd: Dist. No. 1, Tex.

,

Virgenes Municipal Water Dis-

tricts,

Sacramento

3,000,000
/

Calif.__

f

3,500,000

Redev.

Wyo._

1_

1,100,000

-

—

Agency, Calif. A. 2,800,000

—

'

;•/ •'

'

:;•

'

August 2 0 (Tuesday)v".

Alexandria, La.-.——
Raritan Tp.

1" * /."

11,350,000 -1965-1993

" /; *. •"

;

~<

11:00

a.m.

IJ1,950,000 .-1965-1983 V 8:00

p.m.

;

S. D., N. X—__

„.

August 21 (Wednesday)
Fulton
San

Co., Ga

15,950,000

1967-1988

11:00

Jose, Calif

4,200,000

1965-1984

11:00

winning

include Goodbody &

Bradford

8:00 p.m.

100,000,000

Ohio

Tulsa Co. Ind. S. D. No.

the

Calif.

D.,

(State of)—

in¬

Son.

of

2:00

1,800.090

August 7 (Wednesday)
California

J.

associates

of 3.3904%.

cost
a

Hilliard

Co.,
v..

bonds

Co.

bid,

Kentucky

Other

&

&

interest

second

3.15%

J.

Unif.S.

Yorktown, Etc., Cent. S. D. #1, N.Y. /

Park Co. S. D. No. 6,

t-J.S-'

.

Winchester, Kentucky sold $2,-

3 30%

>:

Shreveport, La.

333,000 Utilities Revenue Refund¬

1981-1982

'

yield from 2.40%

balance in account totals

present

$445,000.

3%%

A?',.-

to

Asked

3.05%

ing & Boy's School

Co. and Charles Parcells & Co.
Scaled

awarded

1964-1987

,

Phoenix, Ariz.

winning

&

(P.

J.______L—

1966-1993

Mexico, State Capital Build-

run¬

net

group include John Nuveen &

Co.,

New

1,090,000

3,093,000

net

a

Inc. syndicate.

Other members

a.m.

August 14 (Wednesday)

$2,-

were

interest cost of 3.5102%.

cost,

Newark, N.

investors.

group

Braun, Bosworth &

off

were

City,

the

only

were

worthy of brief

Thursday there

ner-up

;«

Valley, Minn.—,

Genesee

past week has totaled

uninteresting

an

10:00

August 6 (Tuesday)

issue cal¬

new

1964-1983

1,250,000

.1

Boyertown, Pa.

Park

Awards

competitive

endar

August 5 (Monday). ^///■".////. / '•/<./;'./AA.

for

June, 1962 and for the six months
1.02%

1/

A

Washoe County, Nev

recorded

result

Watling, Lerchen & Co., Shannon

Aug. 14.

a.m.

a.m.

this week

week

a

160,000 'New

Authority

-10:30

1964-1988

3.000,000

Index

bonds set for August 7 and $116,-

Housing

'

University of Alaska

Commercial

Hornblower

big

gains

registered

issues

that

It

County, Washington P.U.D.

pressure

only two

or more

•

The

been

awarded

Dealers should

$100,000,000

further

9:00 a.m.

/ 5,533,000- : 1964-1988 /10:3,0

and

llOVi-111%.

that

these

4%s

week

School'District (1966-1989)

time with this light

which

issues of

ayailability.:-..v'^.1'




most

a

quoted

issues

tations being readied for flotation

July 31, 1963 Index=3.053%
•No apparent

have

for

over

under

$500,000,000. Moreover, there

Rate

Angeles,

might

the

on

quoted

now

mention.

The total of scheduled and

tentatively

point

likely

market

Offerings Dominate '

Current

weeks.

1

Recent

far merely incipient.

new

the past

4%s held the

re¬

symptoms to this end but th^y

Two Large

were

money

spontaneously

a

sustainable.

thus

other

Oklahoma

area.;/ against 0.98%

confusing

many:

close to present

or

not be
are

so

long

and

issues

during

Florida

seems

1963

thus

can

California, State
^3V2%
1982
'
3.20%
•Connecticut, State—
3%% * 1981-1982
3.15%
New Jersey Hwy.
Authr, Gtd.l_ll'3% "V"* 1981-1982 3 10%
•New York State
3y4%
1981-1982/3.05%
•Pennsylvania, State
3%%
1974-1975
2.80%
•Delaware, State
2.90%
1981-1982
3.20%
New Housing Auth. (N. Y., N,
Y.) 3y2%
1981-1982
3.15%
Los

gained

the

market

firm

The

^112%.

for

institutional

MARKET ON REPRESENTATIVE SERIAL ISSUES
!"

111

tax-exempt

•

a

steady and

stitutional and otherwise, that the

There

utility

revenue

:/

~

-

Wichita Falls Various G. O.. Texas

Higher Clearwater, Fla.

quoted toll road, toll

r

Wichita Falls W & S Rev., Texas—;

Camden County, N. J

Moderately

public

term

week.

long term bond market

yielding have

offerings which has helped in

long

smaller than it has been in several

new

turned

the gen¬

in

/

some

the

on

Bonds

bridge,

in¬

related.

inventory situation contin¬

to show

naive

sphere that bids

there

rates

Wanapums

more

1966-1993

3,736,000

un¬

anticipated.

9,600,000

a.m.

11:00 a.m.

2,260,000 *• 1964-1992 /,11:00 a.m.
1964-1992 '> 2:00 p.m.

Seneca, N. Y

Golden

times

term

future

1964-1993

r

Peru, Ausable, etc., S. D., 1, N. Y.

ap¬

ap¬

23,435,000

Oregon State B oard of Higher

West

10:00

5,000,000 .,1975-1982

New Hampshire (State of )

Current

There

near

are

The dollar

the power to support higher short

The

ues

less

recently

deviousness

developing

the

than

Dollar

date

has

comprehen¬

more

there

that

at

available

more

ap¬

inhibit, for awhile at least,

ceptive

second¬

less

around

vestors that the authorities possess

of

appear

similar

Inventories
The

much

be sustained in its present

situation still obtains

recently

sive

case

part

variously

points

obtuse

sec¬

the

and

for

eschewing

or

and

was

now

had

widened

competed to

offerings

ary

to

as

June

Dealers

have

pricing

issues

new

which might

gree

of state

generally

ondary offerings

/■■/'*•

y

preciably in

(Wanapum Dam)

convincing

day

little to bulge this total

attractive.

bond investor.
In

to

load.

street

$486,107,000.

relatively

the enthusiasm of the

ob¬

is

pears

are

//;•/■;

August 1 (Thursday)
Mississippi (State of)

.-

total

Grant

eral bond market

advertise¬

issue

new

by

moderated

day

our

does

definitely indicates

municipal

to

a

for

and

state

are

well to

of

by simply observing. the

or

better

parent that by rule qf thumb con¬

troduced

secondary

indicated

was

at

-

readily

offerings, had fallen back

than

more

be

to

considerations, have

and

remnants

other

points

3

Investors'- Dilemma

responsive

in¬

The market for tax exempts,

new

Index

the

-

about

continues

well

the

However, the market authorities,

before.

even

particularly for the

mat¬

a

current level./

the

bonds

period of slow market erosion de¬

the

with

or

bond ; offerings

market's spectacular
gain
made
reached in early week ago and are now

perspective,

sideration

by a consideration of the lengthy
rumors

close

point belo\v the present level.

a

It

surprise*. to
may

dollars

in

3.10%,

During the past year, as

than

some

pretty

point

reached in mid-July with the

was

to

low

recent

market's

The

redis¬

as

The Blue List total of state and

municipal

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

Education

represents

market gain of %ths of a point.

a

'market

abrupt

as

{$

Prevails

the

week

decrease in yield

This

December

Price

Tax-Exempt

Structure

this

yield

3.07% yield a week ago.

a

2.888%
-

out at

bond yield Index averages

re¬

a

municipal

and

state

Chronicle's

lag that would render

academic.

a

Commercial and Financial

The

deposits; The general inter¬ /..

time

a

In

approxi¬

figure could

a

accurately calculated with¬

usage and this

Tone

Regulation "Q" to 4% for certain
time

it

more

-

few weeks back.-.

a

Index

Yield

of

or#thing

worth

is

has

he

than

3%

liberalizing

the

tunately returned ,,to a more viable

few

a

Thursday, August 1, 1963

.

It would be very in¬

to

mate total but such

The markets for state and munic¬

comfort¬

more

.

Larger Issues Scheduled For Sale

intimated, the inventory sit¬

uation

.

1, Okla.__

'5,000,000

1965-1983

10:00

a.m.
a.m.

a. m.

August 22 (Thursday)
Slidell, La.

1,100,000

1967-1993

7:00

p.m.

1967-1989

' 8:00

p.m.

August 27 (Tuesday)
White Bear Lake Ind. S. D.,

Minn.

1,500,000

Interest

these Bonds is exempt, in the opinions

on

tax

ISSUE

NEW

.

of Bond Counsel to the District and Bond Counsel to the Underwriters, from Federal income
under existing statutes and court decisions.
August 1, 1963

Banco Credito

$197,000,000

Opens Municipal

PUBLIC UTILITY DISTRICT NO. 2 OF GRANT

Dept. in N. Y. C.

_

Angel A. Sanz,

President; Banco
Ponceno, Puerto
Rico, and William G. Carrington,
Vice-President,

jointly

;

i

Wanapum Hydroelectric Refunding Revenue Bonds,

Credito y Ahorro

Jr.,

Washington

•

Series of 1963

an-

$40,000,000 Serial Bonds due annually April 1, 1971 to 1988, inclusive

Y

$51,000,000 (100% Sinking Fuddj Term Bonds due April 1,1998
~
SI; $106,000,000 (100% Sinking Fund) Term Bonds due April 1, 2009 41
Underwriters listed
within brackets of

Allen &

A, C.

alphabetically

participation

Company

Allyn & Co;

••;;&;

:

Blyth & Co., Inc.
Alex, Brown AuSons
Angel A, Sanz

C. J. Devine & Co.

W. G. Carrington, jr,

Drexel &Co.

the

nounce

York

openltfg

City

bond

in1 the

engage

distribution
■

tions

of

of. the

of

Nehv

a;

Eastman

department * to

IY

underwriting-and

Glore, Forgan

rnUnicipal

Goldman/Sachs & Co.

obligaStates and

United

Incorporated.

FHA Mortgages" of
Puerto Rico, and tJ/ S.'~ Govern-

■

;4

;{•;

ment' securities.

Mrl

;

charge

Of

r Will

the-new

Wall Tower

and

office

Merrill
.Summary Description of the Bonds: The 1963

Johii

M.

Sipp

Z dates.;-/:5.

in >60

*7able,at the option of the holder'at First National CityBank, New York
Trust

Robert M. Con-

will be his*

'

.-

amounts,

•

V

for 23 years

•and

*

$1,165,000
1,265,000

bond

department.

in

the

He

marketing

of
au¬

thority

the

throughout

particularly in

Since
been

and

1950

Mr.

managerial

for

(103.94)

$2,235,000

3-60% 1980/ 3.30%

(103.82);

1972/

(103.61)

2,375,000

3.60

198]/ 3.35

(103.31)4

•1982/

3.35

(103.45)

2.90

1973/ 3.00

-(103.12)

2,515,000

3%

-'-•1974/ 3.05

(102.94)

2,660,000

3s/B:

1983/

3.40

(103.20)

3Vi

1975/ 3.10

(103.89)

2,815,000

35/e

1984/

3.40

(103.32)'

1,720,000

3 y2 v

(103.63) :

2,975,000

3.70

1985/

3.45

(103.79)

1,840,000

3%

(103.30)

3,140,000

3.70

1986/

3.45

(103.91)

(102.90).

3,300,000

3.70

1987/

3.50

(103.20)

(103.64)

3,475,000

3.70

1988/

3.50

(103.28)

1,970,000 '3Vr
;-•

2,100,000

J 1976/ 3.15';
3.20

.1978/ 3.25
1979/ 3.30

3.60

.

,

r

White,

in the Bond

in

as

ci-whole at

Retirement Account

part from

excess

money

any

time, and,

Bear, Stearns & Co.
Blair & Co.

in the Bond Redemption

Fund,

on

below, together with
Y

as

Which

?.

•

,

•

Redemption

As

Redeemed

Thereafter to and

Including April 1, 1980

Thereafter to and

including April 1, 1986

..........

a

Thereafter to and

including April 1, 1992

..............................

under¬

Thereafter to and

including April 1«, 2000

........

in

...."..

»>"

•

r

•>

• • • • • • •

•

•('..

-

;

,

Prices

»"*

Thereafter
If the 1959 Bonds issued to finance the construction of the

securities

in

000.

has

He

various

of

excess

helped

customer

$400,000,inaugurate

services

for

banks and insurance companies,

Credito

t Banco
1895 and

o

Rican

branches, with
of

sources

Uhited" States
countries

V

:i

of

of

Rican

and

the

the

Insurance

It

in

the

major

the

loan

in all seg¬

expanding
The

has
the

worlds Its

economy. 4

member, of
;

in

< re¬

throughout

fTdrfcfolioIs* diversified
ments

total

$196,000,000.

correspondents
•

founded

was

Puerto

bank

Federal

is

a

-

Deposit

Corporation.

103.50%

103.00

102.50

102.00

101.50

101.00

101.00

100.50

100.50

;

By Reynolds & Co.
MIAMI,

Fla.

Reynolds

—

&

members of the New York

Exchange

and

other

changes,

announce

ment

Clarence

Stock

leading
the

Co.,

1963

Wanapum

100.00

100.00

Jr.,

as

special representative of the firm
the

in

Mr.
with

Miami

Wolf

at
E.

139

has

Reynolds

20 years
ters

and

Miami

of Florida,.

areas

&

are

held in trust for and

are

moneys

Beach

been

Co.

associated

for

almost

and makes his headquar¬

Reynolds' Miami office at
Flagler Street, Miami.
v-'f

.

Moseley & Co.

4

-

,

,

Weeden & Co.

Wood, Struthers & Co. Inc.

ex-- -

and U.S. Treasury obligations in the

the only security for the payment of the 1963 Bonds.

Bond Retirement Account: By operation of the Bond Retirement Account, jhe 1963 Bondt maturing in 1998
and in 2009 are to be retired in full from linking fund installments by their respective maturity dates in increasing
amounts

'1

annually.

|

therewith $197,000,000

principal

retirement in 1970
1970 subject to the con¬

amount of U. S. Treasury Bonds. This Fund is dedicated to the

Wanapum Hydroelectric Revenue Bonds, Series

1963 Bonds will be secured

by the lien and pledge of the revenues of

ihe

ii;*;.r

'.

Braun-, Bosworth & Co.
Incorporated

Wanapum Hydroelectric

Incorporated

R. S. Dickson &

to

Messrs. Wood, King, Dawson & Logan and Hawkins,
the District and to the Underwriters,Respectively, valid and

legally binding obligations of Public Utility District No. 2 of Grant County, Washington, payable
solely from and secured by a lien and pledge of the revenues of the Wanapurh Hydroelectric Project
as provided in the Bond Resolution; provided,
however, that said lien and pledge will not attach

Geo. B. Gibbons &

until all bonds issued under the 1959 Resolution have been retired in accordance

Lee

Pacific Northwest Company
Roosevelt & Cross
I

Incorporated

Stifet, Nicolaus & Company

and if issued and subject to acceptance by the Underwriters,
approval of their Bond Counsel, to prior sale and to withdrawal,
or

& Co.

W. E. Hutton & Co.

offered when, as

cancellation

Higginson Corporation

J. A. Hogle

decisions.

to

Company, Inc.

Gregory & Sons

of said resolution, and that pending such retirement, the Bonds are payable solely from
and secured by the proceeds (less certain refunding expenses) derived from thg sale of the 1963 Bonds
and deposited in the Bond Redemption Fund under the Bond Resolution and the securities in which
such proceeds may be invested and reinvested and the interest and income derived therefrom. In
the opinion of the above counsel the income of the District, including its income derived from the
investment of the Bond Redemption Fund, is not subject to Federal income tax under existing statutes

are

Co., Inc. 4

Estabrook & Co.

terms

The 1963 Bonds

-

'

Delafield & Wood, Bohd Counsel

court

.

Y.¬

Dick & Merle-Smith

and

4

Clark, Dodge & CO.

The 1963 Bonds uiill constitute, in the opinions of

revenues

;; ^

.y •■;<

William Blair & Company

Project under the 1963 Bond Resolution.

such

1,•

Bacon^Whippid & Co,„

demotion Fund'held by the Bond Fund Trustee consisting of U. S. Treasury obligations. A"*'' 'he retirement of the
1959 Bonds, the

f

Securities Corporation

Bacon, Stevenson & Co.

,

1959 maturing on and" after July 1,
dition, however, that until the retirement of the 1959 Bonds, the 1963 Bonds will be secured..iolely.by.-*aid.,Band..Ro*
of the

•.

American

Short Statement: The proceeds of the 1963 Bonds, exclusive of amounts estimated to be sufficient 4o pay expenses
in connection with the 1963 Bonds ond refunding the 1959 Bonds, shall be deposited in the Bond Redemption Fund
with the Bond Fund Trustee,' Chemical Bank New York Trust Company, 'New York, N. Y.> which shall purchase

Incorporated

Tripp & Co., Inc.

modification of the offer without notice.

John Nuveen & Co.
;

B. J. Van Ingen

& Co. Inc.

Blyth & Co., Inc.'

4;.V

*■

x

refunding

Hemphill, Noyes & Co.

ex¬

appoint¬

Wolf,

certain

1963

1963 Bonds, equally and ratably in full

(Incorporated)

of

less

*

%

F. S. Smithers & Co.

Hydroelectric Project are not retired in the

Bonds

y

L. F. Rothschild & Co.

and invested in U.S. Treasury obligations) to the holders of the

Redemption Fund

4

t

Paine, Webber, Jackson & Curtis

Refunding Program, the Bond Fund Trustee shall effect distribution of. the

payment thereof. Until applied to the retirement of the 1959 Bonds, all

%

Shearsop, Hammill & Co.

in the Bond Redemption Fund (created from the proceeds of the

to

Wolf Appointed

the

*

Reynolds & Co., Inc.

penses,

with the

•

pursuant to

;

Haupt & Co.

F. S.

(1998 ond 2009
moturities only)

Whole

104.00%

moneys

Bond

today operates 37 Puerto

intended

manner

V

Ladenburg, Thalmann & Co.

i.

writes of various Puerto Rican
;

v

4 4.

Michigan Corporation

Good body & Co.

Mra

principal amount) set (forth

In Part

during

; 7

4
y

Foster & Marshall Inc.

interest payment date as provided in the 1963
percentages of the

interest accrued to the redemption date:
1 V1,'.*•
"...

Period

r

Francis I. du Pont & Co.

subject to redemption prior to maturity on or after

any

4

..

'

J. C. Bradford & Co.

1963 Bonds maturing in 1998 and 2009, in part from money
Account, in the Bond Fund, and, as to 1963 Bonds maturing in 2009,

Resolution, at the respective redemption prices (expressed

/«

Incorporated

as' to

in the Reserve

or

are^

-

Weld & Co.'

First of

Redemption Provisions of the Bonds: 1963 Bonds

4

-

Bache & Co.

) Approximate of August 1, 1963

(

Ingen & Co. Inc.

"

$51,000,000 3.80% TERM BONDS due April 1, 1998/-Price 103.50 (Appro*. Yield 3.62%)
v'-'••;*.

v

,v>

$-■

$106,000,000 3.85% TERM BONDS due April 1, 2009/-Price 103.50 (Appro*. Yield 3.69%)

January 1, 1970 to and including April 1, 1974

Carrington has

responsible

capacity

1971/ 2.80%

"

Pennsylvania.

personally

B. J. Van

3%

1977/

4

,v

Salomon Brothers & Hutzler

■

3%

Arkansas, Florida,- Loui¬
Mississippi, New Jersey,

siana,

*

-

//•'._
v-

y

•-..(Incorporated)

y

.

1,595,000

those of

New York

■

1,370,000

Bond

Unite dSt ate s,

v;

:

,,•.,

John Nuveen & Co.

coupon rates, maturities/yields and prices for serial bonds

3%%

January 1, 1970,

state, municipal and various
bonds

4

Lynch, Pierce, Fenner & Smith
Incorporated

Incorporated.

,

are

principal only and in fully registered form

: 1,485,000

has had many years' of specialized

experience

City, Continental Illinois National Bank and

as to

3.60

partner in charge of the

was

municipal

•"

.

multiple thereof. Coupon and fully registered 1963 Bonds Will be interchangeable.

or any

(due April 1), ■

with the N. Y. Stock

Exchange firm of Ira Haupt & Co.

,

$5,000,

It

associated

was

in the denomination of

:■' J

•'

tivities the New York office will
also manage the bank's bond port"folio. rY>':" /2.;,-,.v
V

Mr.: Carrington

-

form in the denomination of $5,000, registrable

coupon

V-'£

asso-

..J"Y-:

.

*

W. H. Morton & Co.

R, W. Pressprich & Go.

In addition to its underwriting,
.distributing and bond dealing ac¬

■;V

in

'

and October l)-wlll~bo:-pay-

Company of Chicago, Chicago, and The National Bank of Commerce of Seattle, Seattle..Definitive 1963 Bonds

issuObie

m

.

and fully registered Bonds initially issued will'be dated April

coupon

1, 1963; principal and interest (April 1, 1964 and semi-annually thereafter each April' 1

riers, Donald R. MacNaughton and
"

~

v'-V

Lazar.d Freres & Co.

in

he

'

r

Kidder, Peabody &.Co.,

&&fV:

Carrington

.

^Cp.

Harriman Ripley.& Co.

Puertd Rico,

•

>

,.

Dillon, Union Securities & Co.

Equitable Securities Corporation

.

■«•:'< i'-i

O"

t


V


'O*

«.

'

Kidder, Peabody & Co.
•

1

Ait

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

A; C.

Allyn & Co.

The Commercial and Financial Chronicle

(440)

8

i

Co.

DEALER-BROKER

Puerto

and

W.

Hutton

E.

New

York,

INVESTMENT LITERATURE

available

AND RECOMMENDATIONS

Railroad

:

'

...

PARTIES

INTERESTED

SEND

TO

FIRMS

THE

THAT

UNDERSTOOD

IS

IT

Y.,

Also

10005.

discussion

a

Discount Rate and Bank

PLEASED

LITERATURE:

FOLLOWING

THE

Dept.

i

BE

WILL

MENTIONED

Outlook

the

of

Ahead of the News

Earnings.

&

Finan¬

Park

Place,

cial

Chronicle,

New

York, N. Y. 10007. Also avail¬

able

are

25

Industry

Transport

Air

ments with

National

Lines,

Continental

lines

and

—H.

Hentz

&

Lines

Air

Wall

72

Co.,

York, N. Y. 10005. Also avail¬
are

&

Co., 25 Broad Street, New York,

N.

comments

Corp.,

Cup,

Maryland

Jewel

Tea,

Washington

Gas

of

Study

Payments

of

Bank

—

Montreal

6002,

Broad

60

San

tive

figures

Japanese Market

45

149

Fran-

of

Honda

subishi

King

50

Calvin

1

Also

West,

Wall

of

Analysis

&

Industries

tries,

on

and

—

New York

New

York

Index

over

speeches

societies —1962

New

sub¬

analysts

Annual

Cumula¬

the

on

issues

weekly

available

on

or

vyith

the

Oils

monthly

particular

Discussion

comments

Amerada, Marathon Oil,
Oil

of

New

Indiana,

Jersey

Petroleum

—

and

Royal

the

are

Finance

Motor

Freight

year

Industries,
Reynolds

Aluminum

10

stocks

Meeds,

—

120

on

and

Continental

Stock

the

the

—

-

over

stocks

to

as

performance
—

compari¬

Dow

35

20

Folder

industrial
Jones
-

thein

used

Quotation

both

period

s—

over

and

a

25-

National Quotation

Inc.,

46

Front

Street-

New York 4, N. Y.
Puerto Rico—Report on the econ¬
omy

with

Bacardi

on

Ahorro

Litton

de

Industry,

Oil

Metals, Chandler Leas¬

Corp.,

Banco

Puerto

Rico,

Refining,

markets,

Credito

Banco

y

'Popular

Commonwealth
Pueblo

Super¬

Rican

Cement

Puerto

brotherhoods

been
0f

trying for 20

paying

banks, brokers and financial institutions

and

Y.

10005.

comments

on

j

flrn

,
M1.Hoc
Securities

i

nnn?

"ri

w

Company

■

East

30-day

time—from

Street,

Kansas City Southern Industries-

K-r
P'
R°thschild & Co.,
Broadway, New

collective

Bass

Industries,

Inc.

Study—

amLCompany, Inc., 132 West
Street, New York, N. Y.

31st

Gas

•

Insurance

a

troversy

over

the

to

con-

with

in-

f0r political reasons.
much

It looks very

though the President

as

through
bm

some

stormy waters.

however

ate

House

and

committees

Northern Pacific—Memorandum—

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

on

available

Eli

are

memo-

Lilly, Thrifty Drug

Aluminum,

reSpects.

Undoubtedly,

when

ure

arid

fioor

pending

Schlitz Brewing
in

vestor's

amend-

it
in

on

reaches

the

the

House,

what

kind

meas-

Senate

too,
of

a

way

and

Trans-

to

provide

arbitration,"

for

"compulsory

dirty word.

a

is

Republican,

he will offer

has

issue

Reader"—Merrill

the

does

of

"In-

the roads and

on

brotherhoods

voiuntary

ment to the Railway Labor Act to

all types

of

featherbed-

if there

are

doesn't

that

his

amend_

.

into line with the principle of
national

bedding

policy
as

against

feather-

established in the Taft-

Hart,ey Act gnd ^ Lea

mean

^

tter dealing with the broadcast-

rnean

language

announced

ments would bring the railroads

no

agreements.
If
that
compulsion, the

not

ator

ing industry.

muchIn

of

view

the

history of this

I

dispute, which has continued for
with

decision

even

Supreme

a

saying

Ok

the

BROKERAGE

roads

HOUSE

a legal right to put the antifeatherbedding rules into effect,
and

the

adamant

attitude

of

REPORTS

the

Plus—over

brotherhoods against cutting off a

single featherbed job, it does not

likely

appear
are

going

but will

to

the

leading business and
financial publications

brotherhoods

agree

to

anything

hopefully await decisions

favorable

to

them

by

the

Inter-

INDEXED and BRIEFED WEEKLY

state Commerce Commission,
Commerce

in the

Com-

mission is to rule within 120 days
or

as

soon

thereafter

as

complete, concise

FUNK & SCOTT INDEX
of

practical,

Corporations and Industries

For Full Information and

the Icc are to remain in effect

FREE sample of latest index

National

for
same

Seal,

Corp.,

Pennzoil,

Columbia
.

issue

Crown
Carlisle

two years.

Hospital

given

it

by

new work

mail this coupon

denying

themselves

rules to get rid of

pay-

[
|

J

to

weeb;

gave
enact

i„j

appealed,

ai

Congress

his
.1-

through

bill.
ii.

.

the

only

a

Congress
_i.

•

chairmen

•

•

INVESTMENT INDEX COMPANY

C |

Colonnade Bid?., University Circle
Cleveland 6, Ohio

I

J

i
i

I

ADDRESS

j Qjy

BROKERS REPORTS

Common Stock

Complete Text
A

Sing

MCORPRRATIR

in

Security Dealers Association
CHARLOTTE

Teletype 212 571-1780; 1781; 1782

subscription to the WALL STREET
TRANSCRIPT puts the FULL, ORIG¬
INAL TEXT of brokers'^ reports at
your
fingertips. Complete—cross in¬
dexed, cumulatively—reports reprinted
full.

your

Member* Midwest Stock Exchange
NEW

YORK

RALEIGH

COLUMBIA

•

ATLANTA

GREENSBORO

GREENVILLE

JACKSONVILLE

Attach

this

•

today!

NAME.

f.°r ™ork not Performed. Tim

President
Sup-

Presumably, Con¬

legislate within the 30-

day period, which the roads have

Broadcasting
„

American

~

Lynch,

rated, 70 Pine Street, New York,

.

an-

amend-

an

which might mean anything. And
Pierce, Fenner & Smith Incorpo- the new work rules handed down

.

re¬

Senator Barry Goldwater

Arizona,

None-

Commerce Commission

binding

The Interstate

Company—Com-

current

&

derule

ported by the House Rules Corn-

prohibit

portation Industry.

ments

where

ments win be offered to the

disputants the right to make

any

His

still before Sen-

is

TcoTd darnelEftapZt

nounced

have

Inc., 231 South La Salle St.,
Chicago, 111.

Stores,

any

may

have engineered his political craft

agreement they wish,
Because permission is given the

ticn—Analysis—The Illinois Company,

Trinity Place, New York 6, N. Y.




to

Interstate

Commission,

Court

v,:t

HAnover 2-2400

the

sent

R. S. DICKSON & COMPANY

74

an isdefied

ineffective.
had

Block inquiries invited

Members New York

labor unions—the brotherhoods—

indeed,

Drackett Company

Companies

Troster,

the

bill turning the

Congress

four years,

Also

mem-

of

and

had

Kennedy

Niagara Mohawk Power Corpora

10004.

nor

desired to crack

We maintain active
trading market in:

Independent Telephones

•

which

^

Producers/Pipelines

Neither the President
bers of Congress

Congress

roads

the

completely

President

10001.

System,

Utilities

give

bargaining;

it

made

English

„

•

to

brotherhoods

10005.

Melnor

enacted

be

not

July 29 to August 29

between

sue

law would

a

is

featherbedding, on settling

Interstate

nlv
SpAhliro- Onun
ovi/t
rin.rif/v
ply,
Seeburg Corp.
and Clevite.
•

extension

intended

will be

Cork

Industrials

that

theless, if the bill means anything,
Milwaukee, it means that the decisions of the

53202.

Corp.,
•

to get out

years

work

ing that

within that time.

may ding practices in the railway and
desire, the President's bill is said ajr transDOrt industries. The Sen-

.

Trading Markets in:

for

Co., Incorporated, 225

Mason

Wis.

made

were

in the Senate supporting the 30-

down summarily on these railroad

The

not

&

to

Np1SSVnrt- ^Tv' voluntary agreements they

av

Consolidated Papers Inc.—Review

Diamond

Firm

due

voluntary

Georgia Pacific.

a?e .comments on Swingline, Inc.,
.

but

done.

gress will

For

A number of speeches

0f

N.

are

N. Y. 10005. Also in the
;

was

soiely to the railroads which have

particular reference to

Ponceno,

one

It

mittee.

York,

Bureau

yield

month.

a

parties will be free to reach

New

York, N. Y.

at mid-year

listed

industrial

Bureau,

of

Interstate

System,

of

Corporation,

in

National

market

Dutch

reports

Corp.,

Ga. 30301.

comments

are

available

—Loewi

Stocks—

Bank

the

and

Averages,

—

Goodbody & Co., 2

available

Family

dollars

Committees,

30-day extension.

a

structions to settle the differences giving it the right of

fl)ri,na
Christiana

up-to-date

an

used

counter

Broadway, New York, N. Y. 10004.
Also

billion

Interstate

—and pending the settlement there
is to be no strike and the two

of

bank

Boston

Averages

on

Oil

*s estimated would have cost

its

of

the roads for

port—Reynolds & Co., 120 Broad-

analysis

Co.

BARGERON

American Metal Climax, Inc.—Re-

Chrysler

Securities

&

Cty

between

stocks

Standard

Standard

railroad strike which it

a

Commerce

Y.

analysis

City

York

showing
son

request—In¬

—

Com-

Devices*

N.

Over-the-Counter Index

Building, Cleveland 6, Ohio.

Gauging

row,

Co., 11 Marietta

Atlanta,

Machines

ness

way,

10006.

Bissell

—First

vestment Index Co., 206 F Colon¬
nade

country has been spared for

days

time to legislate on this matter of

*

Corp., International Busi-

Also

Inc., Ill Broadway,

Comparative figures

200 financial

before

The
30

-_is

Buckingham Corporation, Georgia
Pacific

61

Broadway, New York 5, N. Y.

tive Volume $30. Further informa¬
tion

an

and

York

Laird,

of

publications, 350 broker's reports,
and

is

W

No¬

6,

*

available

—

indus¬

business

general

Sony,

Also

Ltd.,

York

City Bank

Comparison

corporations,

jects taken from

Market.

Courts &

—

Scott Index of Corpora¬

articles

Electric:

Review

Co.,

"

New

available

New

tions

—

Review—Yamaichi

St.,

Place, New York 6, N. Y.
&

Bond

a

peivniniim
Amerada Petroleum
Corp.

Japanese Shipbuilding Industry-

Troster, Singer & Co., 74 Trinity

Funk

studies

are

Kansai

Securities

New York, N. Y.
—

the

..

York, N. Y., 10005.

Cosmetic Industry

Ltd.,

Tokyo Shibaura Electric.

Japanese Market

Industry—Review—

Bullock, Ltd.,

is

Sanwa Bank Limited.

Ont., Canada.

Construction

New

Street,

Corporation,

nnn![0^iStreet,
!Ne\v York,bulletin
N. Y.,
Also available

Monthly Re- i Street, N

—

Industries,

Heavy

Broadway,

1,

i

com-

institutions—

New Yoik Hanseatic

ments

Compara¬

Corporation

quarterly

leading

Stet¬

&

Broadway,

26

Motor,

Midland

Toronto

Cohu

available

Also

mura

Limited,

Socony
Rnrkwpll

Dis¬

—

Broadway, New York, N. Y.

companies arranged by industry—
Securities

Tax

Power, Nippon Electric, Shin Mit¬

representative

on

Equalization

view—Daiwa Securities Co.,

Canada.

Que.,
—

Co.,

CARLISLE

no* through any goodness of the day proposal and virtually pledg-

consecutive

parisonof

Street, New York, N. Y.

Incorporated,

son

Review—Bul¬

3,

and

'

Corp.

*

Montreal, P. O.

Companies

Com-

and

AG,

cussion—Winslow,

and

Canadian

Smith

10004.

10006.

Business

Canadian
letin

Bank

125th

Bank AG,

Deutsche

on

Banks

on

Calif. 94106.

cisco,

Leading

Three

10004.

Problem—

Street,

O.
Oil

Germany's

New York, N. Y. 10004.

Dean Witter & Co.,

—

Montgomery

A.

Gulf

com¬

Equipment,

Standard

Interest

Light and Delta Airlines.
Balance

Mfthil

New

are

Midland

Marine

on

Singer

Corp.,

available

Also

10004.

Y.

and

merzbank AG—Burnham and

Industry—Bulletin—Hirsch

Auto

Rayonier,

Telegraph,

&

Mayer

Clark

on

U. S. Banks & Trust Companies—

Dresdner

Northern Pacific.

and

ments

York Bank Stocks.

—Report

Chicago & North

on

Telephone

Goldwyn

Inter¬

Edison,

railroad

St.,

able

data

Metro

Air¬

New

Western

national

particular reference to

Air

United

Com¬

—

Consolidated

BY

analyses of Royal Dutch

Petroleum, Ford Motor, and
ing,

Thursday, August 1, 1963

Analysis—

—

Commercial

DB,

.

FROM WASHINGTON

Co., 14 Wall St.,

...

•

,

Rico Telephone—

&

N.

is

.

advertisement

letterhead for free sample

to

copy.

Wall Street

Transcript
Dept. 928

54 Wall Street

HA 2-4510

New York 5,

N. Y.

198

Volume

Number 6286

,

.

.

.

The Commercial and Financial Chronicle

(441)

Further Action Needed

these steps would be sufficient to

of

silver, steps

correct

to

secure

the

in which the

way

continue

In Defense of the Dollar
By Paul Einzig
The fact that

balance of

our

payments problem boosted world exchange markets'

and,lessen fears

confidence in,

as

to devaluation.of, ihe U.S. dollar,

and is

symptomatic of

our

of the Federal Reserve re-

crease

in

ment

Prior

to steps taken, there was a grow-

foreign

the

in

feeling

ing

denials ? the

repeated

standing

notwith-

that

rr,nrirptc

devalued.

dollar might after all be
In

the

International

the

would

acute

dollar

gold

outflow

markets

be

it

would

foreign

could

the
be

exchange

satisfied

that

o

ow
ei

them up,

steps

interest

in

national

if necessary, by
the forrn of higher

and

ra,es

absolute

of

departures

freedom

of

inter-

capital movements.

Suggests We Sell Silver to Prove

trans-

They

all,

beneficfaMf

it would
the

of

highly

satisfy foreign

dollars

the

be

full

that

nickel

their
other

or

should

So

long

base

the

the

metal

hardly

of

f

,

of

of

blamed

if

American

gravity

dent

they

re-

of

the

their task of defending the dollar,

held

silver

and

in

officially-

'sd"r

in

^iew the measures may prove to enough
pro-

.

TT

now

practiCally high

„

.

■

.

,

,

.

as

that

the authori-

sl*ver coms for industrial ties convey the impression that
wil1 not convey the impression purposes. Before the considerable they think they can afford the
that the ~ American authorities, amount of silver that is in circu- luxury of wasting such an inter-

iaureis

content
on

the

to

rest

on

assumption

their

that

form

of

result of

coins
a

an

in the

disappeared

as

a

further rise in the price

national

asset

there

be

can

ad¬

vertising

and

Mr.

no

from
to

AF-GL in 1953
as

count

George A. Preston

tive./
the

in

agency

1956

with

He

agency.

53rd
He

is

Riedel

that the

in

result

intentions

much

so

This announcement

is

not

an

office, 44 East

is

the

on

membership

nearly
the

of

given priority

pursuit

dollar.

Advertisers.

or a

solicitation oj

an

ojjer to buy securities.

August 1, 1963

$20,000,000

v

dollar

the

the

over

Until

capital

believed

widely

policy

freedom
move¬

fortnight

a

Telegraph and Telephone Dollar Bonds Due 1978

dogmatic

money

international

Nippon Telegraph & Telephone Public: Corporation
53A% Guaranteed

now

are

doctrinaire

the

ments.

can¬

ago

that

United States authorities

Unconditionally Guaranteed

it

the

were

of

not

gold outflow, and that they

to

Payment

Jap an

interest

rates for the sake of checking the

inspired by

as

Principal and Interest by

prepared to risk halting the bus¬
iness recovery by raising

were

spirit of dogmatism

a

*

precluded

/' *

departure from

any

tf'
■

laissez-faire
export.

in respect of capital

it

Now

defense

is

evident

the

of

dollar

4#

Price 96%%

that

■

i

plus accrued interest from July 15, 1963

comes

first.
is

the effect of higher

true,

short-term
American

interest

rates

of

balance

on

the

•;4 V'

payments is

Copies oj the prospectus

liable to be offset by the effect of

in

be obtained from such oj the undersigned (who are among the underwriters named
ihe prospectus) as may legally
ojjer these securities under applicable securities laws.
map

lower long-term interest rates re¬

sulting from
zation

interest

the

tax.

If

we

equali¬

disregard

the

effect of higher short-term inter¬
rates

the

on

movements

of

funds, the only way in which they
of

is

payments

mestic

the

help

effectively

can

by

demand for goods

lowering

prices

and

exportable

surpluses

in

at

centers

the

Dillon, Read & Co. Inc.

balance

reducing

and

same

Smith, Barney & Co.
Incorporated

Kuhn, Loeb & Co.

thereby

Blyth & Co., Inc.

Incorporated

export
time

The First Boston Corporation

do¬

increasing

Eastman Dillon, Union Securities & Co.

as

The Dominion Securities Corporation

Goldman, Sachs & Co.

aimed at

Kidder,Peabody&Co. LazardFreres&Co. Lehman Brothers Merrill Lynch, Pierce, Fenner&Smith
Incorporated

are

by the equalization tax

Incorporated

White, Weld & Co.

stimulate demand for capital goods

Dean Witter & Co.

Bache & Co.

this tends to cancel out the bene¬
ficial

effect

interest

of

rates

payments.

higher
on

the

short-term
balance

The Daiwa Securities Co., Ltd.

of

!

Even

fects

so,

the

producing
on

the

two

measures,

conflicting

balance




The Nikko Securities Co., Ltd.

Yamaichi Securities

'

while

of

ef¬

current

Harriman Ripley & Co.
Incorporated

discouraging1 imports. But if lower

long-term interest rates'that

.

i?

.■'•I*'

much con¬

as

cheap

of

of

solemn

disclaimers

the indication that

as

defenses

most

the

Even

inspire

fidence

est

com¬

mittee of the New York Financial

really

that

in

real revival of confidence in the

ojjer oj securities jor sale

authorities

States

categorical

It

Freede

AF-GL

actual

the

devalue

to

matters.

the

left

became

currently at the firm's

have gone beyond mere denials of

that

He

any

the fact that at long

as

last the United

was

&

ac¬

execu¬

changes.

not

measures

of

adver-

Street.

New Issue

and

and

rejoined

New York uptown

At Long Last Action Was Taken

not

an

t i sin g

United

the

assume

not

will

sensational

and

Preston

causing heavy

scare

inclined

meeting

It

the

initiallyjoined

1958 and is

,

vided that official pronouncement use

be

of

national

tions agency.

from circulation is of the order of

to make it worth while to $4 billion. So long

by
Mc-

public rela¬

associated
is

V.

Adams, Presi¬

and

involved

an¬

can

having realized the immensity of
total

131

been

John

expert
°Pimon was stl11 very far from

The

Inc.,

has

in

has

balance of payments defi-

siiver

Law,

n

dollars

been

Street, New York City, it

the

d

has

nounced

could and should be withdrawn

From a psychological point or

now

Frank-Guenther

„

holders
be

Preston

Vice-President of Albert

a

in-

silver

th

A.

elected

policy

even

using

f

t
.

of

George

Cedar

officia,

instead

in

coins

them,

volume

circulation

sur-

against

metal

remains to maintain and
crease

on

coins

replace
as

of silver

keen

it

cit. a gesture to indicate this

be of the utmost importance,

rendering

be

^WashinSon^d- American offlcial

ministration could
holders

not

AF-GL Agency

mained under the impression that

Taking Further Steps

.

of official

means

Preston V.-P. of

coin-

keep down the market

price of silver by

„

We Mean Business

actions in the same sense.

visable to

foreign

earnestness.

international capital

the

To that end it might be ad-

age.

that

taken
official

As it is, the markets are

States.;
now

Monetary

witnessed

have

Fund

impres-

the having taken these steps, would lation in the United States

defense

before the annual meeting

weeks
of

concrete

any

its

for

taken

steps

of

absence

ex-

the

always

are

and

from

^otspeetacu- the outflow of capital.

atmosphere.

the

steps

difficult,
helpful if the

both tend to help the dollar by grasped
interest preventing
a
pressure
through chronic

the

of

announcement

equalization tax was

the

if

replacing

coins might

and of the

rate to 3V2%

discount

is

be

for

selling, otherwise holders

urt

trade transactions, tend to influence

conveyed

first

Above

LONDON, England—Although the
effect on the dollar of the in-

influence

by

purposes

should
silver

The

to

silver policy is termed a luxury we cannot afford

Present

action.

could

favorable

a

the

sion that other steps might follow,

which would lose the favorable

1

only

measures

exert

psychological
authorities

The

the authorities would not hesitate

laurels,
psychological influence achieved, but
that we convey the impression that other steps will follow.
Other¬
wise, he warns, the world will not be convinced we have fully
grasped the gravity of our payments-deficit. Suggests we sell silver
to support the dollar to prove that we are not afraid to take resolute
pointing this out, Dr. Einzig urges that we not rest dri our

In

to

most

finally, at long last, took concrete steps to tackle

we

situation.

9

Paribas

Corporation

The Nomura Securities Co., Ltd.

Company of New York, Inc.

10

The Commercial and Financial Chronicle

(442)

of drawings which in
made

needs."

been the

"from

-Strong Domestic Economy

are

A

typical

that

use

purchase of dollars

central bank in

a

those

Bank, San Francisco,
Calif., and Former President, Federal Reserve Bank of

the

bank

would

ordi¬

tribution

make our economy prosperous and,

world

than abroad. He warns against
payments problem under the
that it is separable from our domestic economic and

ment

pointed suggestions as to what should be doner opposes capital
relying exclusively on stringent monetary measures;

official holdings only;
singular blame placed on
of public debt, creating easy money, for our

balance of

outright,
cover.

of

use

to

an

enlarge¬

of 'outright' dollar holdings

central banks beyond
which

a

conversion

into

gold would become likely."

(The

point

at

largest and most important single

against cost-spiral; and gainsays

the Fed's monetization

Federal

provide a tem¬

can

alternate

of foreign

gold be confined exclusively to

advocates

facilities

porary

controls and/or

cautions

the

to

forward

currency

from

arrangement

swap

announced

payments ills.

$50

recently;

an

the

as

basic

con¬

of

reserve

capable of meeting the needs of

was

increase

million to $500 million

during

the

foreseeable

growing world

The

economy.

United

(a)

the

Accomplish;

trying

are

-

what

is

mate

solution

objective?

our

The ulti¬

balance-of-

the

of

the

(and

other

principal

industrial and

trading nations) is
the firm: establishment* of an in¬
ternational

financial

and

trading

the

payments

around

persistent

so

a

balance

the

exceed

the limits of tolerance created by:

banker

and

World,

and

currency

of that World.

(b)

The

which

questions

this

home and

and

whose
reserve

doubts

creates,

at

abroad, concerning the
of

values

currency

convertibility

ing

trader

and

situation

maintenance

the

and

functioning of the

international

suc¬

exist¬

monetary

sys¬

'Y

tem.

bal¬

a

to

as

in

is the principal

(c) The restraint which

anced position will not be so largenor

from:

currency

;•

(a) the amplitude of the swings
total

Free

cessful

system in which: foV";

in

deficit

principal

of

payments problem of the United
States

arises

of payments of a
country which is

Now, to look ahead, what is it
we

States

The long continuance of

substantial

Basic Guidelines

that

Urgent Problem

The urgent form of the
problem
of the balance of
payments of <the

a

dollar

Therefore Federal Reserve
swap

Pointing out we need to survive the short
realize the favors of the long run; Mr. Sproul makes '

may

op¬

standard

future.

before

ever

should make its full

international monetary system

an

country

i.e., without such exchange

responsibilities,

so we

run

an

total

foreign

Reserve for dollars held

subordinating all else to the balance of
notion

the

the

of

sold

lars

thus, investments more attractive here
false

or

unaffected, but it substitutes dol¬

Mr. Sproul urges

nub of our immediate difficulty.

other measures to

tax-cut and

leaves

eration

-holdings

important than

that gold

these dollars for the

up

period of the swap. Such

problem lays bare our capital

Dissection of our balance of payments
accounts as the

mopping

York (1941-56)

New

was

Thursday, August 1, 1963

tary use. This is folly when it is
more

of

excess

narily hold, in effect absorbing

By Allan Sproul,* Director, Wells Fargo

sales of gold by Russia)

and

.

only in response to specific lost, at least temporarily, to mone¬

short-term
has

general,

.

.

sary

payments

position

a neces¬

balance-of-

the

to

response

places

upon

monetary and fiscal action to pro¬
lion during the past five years, in the arrangement between the
(1) the size of domestic reserves
mote a better utilization of do¬
ments
are
continually changing $7 billion was met by sales from United * States
and the United
(2)
international
bororwing mestic
resources
of
men
and
and the approaches to its analysis our monetary gold stock, another Kingdom.)
.
.■
.
rights and privileges
;
i
equipment,
and
a
more
rapid
The
difficulty, $7 billion was financed by in-(
are
numerous
.:(3) the willingness of govern¬ rate of economic growth.
creases
in dollar holdings of ofA Deeper Hole
from
the

balance of pay-

The details of the

-

-

ficial

of

standpoint

national

our

lion

is

well-being,
that

by

in

increase

an

it is the

same.

Since it

the

of

this

The most dramatic aspect of
business
tional

of

keeping

interna-

our

has

balance

accounts

"but

country

beert'

has

same source,

varied somewhat from

State

Grievous

the

changes,
more

purpose

stated by the

as

ments

y

precise

The

bil- Treasury issues of securities deprivate nominated in foreign currencies,

foreign dollar holdings.

the more

the balance of
p a

international

and

foreign

monetary authorities, and $2

country to
char-

common

one

ments

and

central

convertible

whether

(4)

banks

foreign

as

reserves

to

hold

currencies,

•;

not

or

the public at home and abroad.

Both

creditor;,and

debtor

fully than in the recent past, the

cerned with

common

advantageous

r an

recognize,

even

more

interest in the promotion

investment medium for past or and protection of an international
present balance of pavments sur- financial and trading, system,
lem
in
30%
1958,
during 1958-62. The most pluses."... and
"provide this without undesirable controls and
after several
threatening aspect has been the country with an additional source barriers to the movement of cap¬
increase in our foreign liquid liliquiditv which may be par- ital, goods and services over na¬
years of mod¬
Allan Sproul
est deficits, it
abilities to a figure substantially ticularly useful during periods of tional borders, and act, separately
has responded somewhat to treat- exceeding
our
remaining
gold United States balance of pay¬ and together in accordance with
ment, but the response has now stock which is now slightly below rnents deficits." These arrange- that common interest.
grown sluggish and, it is fair to $16 billion.
(Ih balancp of pay- rnents, together with the increased
(c) The defenses of the mone¬
say, that the longer deficits of the ments accounting, small amounts facilities of the International tary sector of that international
present magnitude continue, the of Treasury holdings of convert- Monetary Fund, have proved their
system, against temporary shocks
more seriously the situation must
ible foreign currencies are now worth in meeting the shocks of and
speculative maneuvers, are
be regarded.
V
included in our liquid assets.)
the past year, such as the break sttohgf enough to withstand the
loomed

up

serious

prob¬

_

_

in

the decline

as

monetary gold

our

stock; $6.8 billion (net) or nearly

Pist
Past

Five

" is the latter growing disparity

Years

^

^

First, to get

perspective,

some

look at the aggregate figures

us

for the past five years.

The defi-

cits in the balance of payments of

the

United

aroused

ingiy

billion;

$3.5

approximately

billion in

1958;

that

^as

sudden

some

against the background of
balance of

totaled

which

increase in international tensions-

riod

have

of

States

concern

the United States during this pe-

$16

a seem-

deficit -in -the

intractable

payments, might create

widespread fears of currency dis-

$3.7 billion in 1959; $3.9 billion in

orders

1960; $2.4 billion in 1961, and $2.2

massive conversion of foreign dol-

billion in

1962.

the whole

is

Nor

story. Last

about

were

that

quite

]ar

year

there

the

$700 million in debt

it

which

stability

is

great

military orders placed in this

These

by foreign
our

0f

selves

indefinitely

reproduce them-

and

in

such

a

large

amounts, especially since

ment

is

w
now

Kingdom,

uwcu
owed

which

our

into

its
of

The preliminary figures

own.
our

balance of payments for the

first quarter of

the

point.

some

ing

problems of

;

1963 help to make

Although

there

that

period

exaggerate

an

which

tend

extension

figures for the

rest
4cai,

of

of

the

to

the deficit in the balance of pay-

problem

of

an

annual

rate

of

was

nearly

$3.3

We have been

cits

in

mostly

balance

our

bv

sales

foreign creditors
ing

the

amount

short-term
essence, is

settling the defiof

of

and
of

liabilities
a

payments

gold

to

our

by increasour

foreign

which,

in

in

funds which

borrowed

abroad,

shocks

and

As I have
we

eventually

climb.

been

balance

strength.

more

nearly

I

am

purposely leaving out

reference

to

the

so-called

the

.

.

.

As set forth m considerable and

^tail,ln
Publlca"
;°t GoYfri}ors

fw

nf

banks

and

any

"gold
up

by

Treasuries

of western Europe and the United

.

^

central

oi\tbe Federal Reserve System
and the Federal Reserve Bank

of

States to prevent such fluctuations

in the price of gold in the London
go]d market as might unduly disturb
at

the

foreign

times,

exchanges

intensify drains

and,

on

the

NT
jYarkv.ese .defenses have
included

go]d stock of the United States. I

angements! between the Federal
f the
,Y
ft)rel&n central banks
and
Bank

gyrati0ns

reciprocal

for

currency

ar-

International

e t ements, and a series of TreasUIy orrowingsi by way of issues

,i?nTma
e

Coombs

Federal'

bonds

d m *be currenc*es

uropean

issued"ln

and

the

central

banks

words^ofCharles

Reserve

Rank

YorkwhohasSeen

nf

chiefly

he

We™

these

acreements

quick and-easy way 'are" "mutual credit
facilities

in

defense

a

shouldn't exist

against

market

a

"private"

as a

that

move

of heavy defi¬
failure

the

market is
as

an

anachronism. Insofar

DOssible, the free world's gold

and

its

production

of

hands.

t vf

Providing

f°*

W^°

on

a

ourbtortTinfgTTZf,0/
stand"by basia- Actual uUlizatUon
our total deficit
of about
$16 bil- of such
 u0mf
swap lines takes the form


new

gold

respectable

far

^age of go,d

ho,Idm?s of people

to snecuIate ln currency

reasonable

express)on
tbe vlr'ues °* ^ree
r"rlse' More sold went into
P!7va u.ses m 1962 than in any
new

better progress

justment.

rapidly

It

reasonably

-

the capital accounts should adjust
to

another

one

by successive ap¬

proximations,

over

however, and if the

pressure

on

our

tinues

to

build

fenses

can

be

position

up,

con¬

such

no

de¬

difficulty

over'ThreTouarte^of'IS
supplied (new protoRon

is with the capital accounts.
Our

Basic Approach
The basic approach to

solution

mate

is

this ulti¬

through:

Trade

Accounts;
covered out of

The items to be
a

surplus in the current accounts

service
greatly
during the past decade. The gains
(trade

non-military

and

increased

items)

have

in

current

our

the

during

account

surplus,

recent

most

years,

been

mostly in the amount

private

investment income, a
of earnings on pri¬

have

result

investments

vate

abroad in

during

1962

made

have

we

In fact,

previous years.

with

compared

as

trade bal¬
ance
actually declined.
Yet* it
has been popular and still sounds
healthy to suggest that the best
way—the right way—the Ameri¬
1960,

adequate.

the

time,

;

kernel of the immediate

of

United States,

ad¬

toward

seems

however, that while ordi¬
the current accounts and

clear,
narily

direct

payments of the

the

of

capital account to

on

more

in the balance of

commercial

our

(a) A further reduction of bar¬

can

way—to correct the deficit in

riers to and interferences with the

our

balance of payments

flow of goods,

creasing

services and

the

between

trial

the

area

are

still

of

Particularly

capital

in

there

flows,
of

number

a

capi¬

principal indus¬

countries.

direct

and

is by in¬

favorable balance of

our

tirade.
The

trade

United

accounts

in

States

payments figures have consistent¬

ly shown

a

ments from the countries of west¬

the

of heavy overall

ern

cits;

Europe,

controls

erning

including

and

laws

to

access

which,

in

or

exchange
rules

capital

most

gov¬

markets

have

years

tained at levels which

valid basis in balance of payment

are

terms.

lines

'

^

(b) An increase in the

of the responsibilities of both

ness

deficit
the

aware¬

and

surplus countries for

restoration

ance,

of

payments bal¬

when serious imbalance de¬

velops and persist?, and
of coordination of their

a measure

economic

policies.
(c)

years

Achieving

domestic

eco¬
mone¬

for any

of

business

United

petitive thus far. It does not
on

account

current

creased
mate

materially
Our

future.

nological

..

general

western

of

justments
and in

of

Europe

ade

after the war,

has shrunk or
lessening in the

competitor

deficit

mean

stiffer

use

of

international

holdings of gold and reserve cur¬
rencies, necessary for the proper

working

of

the

growth in

countries

competition,

will
even

though there has been some nar¬

surplus.

(d) Refinement of the means of
economical

a

these

in

the
and

Japan, which persisted for a dec¬

and continuous ad¬

countries

tech¬

over

momentum of economic

contribute to

proxi¬

the

advantage

in¬

be

can

in

price policy all

can

seem

likely that the favorable balance

disappeared;

necessary

States

exports have appeared to be com¬

tary policy, fiscal policy arid costthe

of

prior to World War II

historically high, and in most

countries

nomic conditions in which

defi¬

share of

States

total world trade has been main¬

the

V

surplus during

large

United

the

no

cases;

the

of

balance-of-

the

indirect controls of capital move¬

com-

modity market. The London gold

con™ VaI"eS -'S

cerned with the network of "swan"

arrangements

this

should be concentrated in official

and

the Vice-President of

consider

If

the

of

current account and of

on

balance

the

is not made in reducing the deficit

tal

Opposed to Private Gold Holdings

our

maneuvers.

have, have demonstrated

now

such

repel the

mentioned, the defenses

they

!^lll..bjyidu.g.deeperitheh°!e^
of" which
must;

casually,

equilibrium.

at

billion.

have

and

success

bringing

—of
special certificates
ments
seasonally adjusted

m°netary authorities, that
w®™PreSnab ? a increase
.that insofar
asJ;heyjesuit in
in

a

struggle with the under-

the

vccn
year,

shown

ingenuity

were

special adverse factors dur-

And

Defenses Set Up

govern¬

recurrent

Jhe face of this*massive mobilizab01} of ^stance^forces. Neverth®le.s®'.11 has, f° be remembered,
an5 1S acutely lnJthe .mmds of

oool," which has been set

uv

has

of

considerable

balance of payments

tuc
uiihcu
by the
United

balance of payments

have

we

happening too

we

part of the remaining debt of for¬

eign governments to

that

a

thing

lying

not

dollar.

erecting defenses against this sort
while

will

a

*be dollar which have subsided ip

we

favorable

which

the

of

deal

balance of payments

substantial

were

items in

governments.

in

°ct^er, and in submerging most
^
pres^uyes on

we

achieved

country

result

in May, the Canadian dollar crisis
W June, and the Cuban incident in

an

here

and

$400 million in prepayments

would

st£k ™arkets °* the world

!n

holdings into gold and destroy-

prepayments by foreign countries
on

has

__

,

*

let

character

(1958-1962)

years

cits

acteristic is that these issues provMe the foreign countries con-

countries

special

of the United States in the recent

the apprehension points of

(b)

The

deficit in the balance of payments

gold

exchange

of

the

spread

costs

and

prices

rowing
their

between
and

ours

during the past year which may
show up more

strongly over time

Continued

on

vaae

22

Volume

198

Number

6286

One
Our

.

.

.

The Commercial and

Financial Chronicle

Constitution

(443)

Hartford,

Plaza,

Connecticut

magnificent new main office and headquarters is now open in Constitution Plaza.

The clock tower of Hartford's historic Old State House, erected in

1794, blends effectively

Please

building, and serves to demonstrate

accept

our

cordial invitation
to

with the modern facade of our beautiful 20-story

11

take

a

guided

tour of our new

main office. We're

the growth




and progress of the Bank that knows Connecticut and serves 7 of its 8 counties.

THE

CONNECTICUT
AND

31

OFFICES...SERVING

TRUST
23

very

proud of it.

.

BANK

COMPANY

CONNECTICUT COMMUNITIES

MEMBER F.D.I.C.

12

The Commercial and Financial Chronicle

(444)

i

TT-\

\;

11

*

■

■

\

•

t

.t''

V

'i

'

ft

■

.■

.**•'*'

•

that

■

Underwritings by Banks

investment

senior

underwrite

banker is

investment

Paabody & Co.

partner of Kidder,

member banks of the I B A agre? as

actions in view of their

The

bonds.

revenue

by

a

He believes that many

and

Illinois Public Building Commis¬

rule,

proposed

the

is

documented brief which holds such a sty

a

second

the

At

Conference
Bankers

the

19-21,

June

the

banks

r e n

cy.

an¬

nounced

and

for

1

t i

a

investment

cured by

taxing

na¬

banks.1.

tional

The

appeared

.The
vision

June

the

(See

CHRONICLE

July

1963,

Second

11,

Section,

rule

making and Mr. Saxon

planatory
written

30

address)

ex-

tion

invited

ited

the

ensuing

in

comments

days.

the

S.

5136,

to

for

the

ers>

arid

in

certain

designated

revenue

bonds and to consider such bonds

equivalent

as

tion

the

to

raised

bonds

investment

obliga-

general
storm

a

within

industry

banking

which still rages on.

the

for

proposed

sought

rule-making

the

by

about

comment

power

Comptroller,

Mr.

r\ ies

stock:

or

association

such

strictions

&

partner of Kidder, Peabody

Co., challenged the legality

the

the current law in
tion

dated

of

making under

rule

proposed

communica-

a

July 26,

1963.

of Mr. Ames' letter to Comp-

troiler Saxon and the accompany-

ing

appendix

Mr.

Saron's

four State
Hon.

bond

issues

agencies:

James

J.

iJLr""
prescribe.
section

.

S.

.

the

bv

""

L used
L
.,

term

shall

association,
of

form

in

of

(e)

1.3

would

de-

of

nolitical

subdivi-

follows:

as

under

securities'

be

as

se-

State

of

or

as

hereinafter

otherwise

by

of

credit

includes

The

of

of

the

ob¬

obligation

an

limitations

mg in,

as

in

are

ments;

obligated to make

Such

general

bonds would

obligations

of

en-

pay-

not

the

be

issuer

in

the

mu-

form

by the full taxing
or

and

political

a

stroyed

Weekly

Bond

made

were

or

never

obligations,'

full faith

and

from

general

,

the

are

which

are

credit, and payable
taxing power."

-"The ABC of Municipal Bonds"

in

S. Lebenthal,

published

1937, stated (page 74):
v++i

„

i

+1.

+

f
+h
u
i.
best of
them
all, direct and

obligation

bonds

gen-

were

de-

completed)

and

mumty;
limited

fUH

+•

an

com-

backed up by the

are

taxing

' '

of the

power

+

i

un-

*

•

T\/r

°f

mu-

•

Ba" '^ocLVoTtf

Bankers

America

Association

of

1963, states (page 3);

in

"'General Obligation' bonds are
secured
its

by the issuer's pledge of

full

faith

for

power

credit

(page 3):

,.

connec-

„

of

this

and

taxing
of

payment

the

in

Issuing

Municipal

Service

in

1963,

states

in

is

un-

obligation"
u

were

Qr

division

thereof"

meani

Qf

5136

"general obli-

a

f

congress

amended

within

the
7)of R>s>

h

g

would

have

not

paragraph 7 of R.S. 5136

to

except

from

the

againSt bank dealbl® and under"
writing

bonds

housing

authorities

which the issuing unit

ernment

issued

j

b

and

™Inn, ?

j

sernrpd

+:

+h

^^

hous

i^con-

trfbutions CQyntract

with the Pub.

Housing Administration of the

United States

obligating the PHA

unconditionally
contributions

to

of

annual

pay

amounts

which

wjp[ be sufficient to pay the prin-

"This booklet will deal primarily with general obligation bonds

term

cient to provide for all required
payments in connection with the

n

the

Bonds," published by Moody's In-

all

...

revenue

subdivision thereof is obliSated for payments into the fund
of amaunts which will be suffi-

lie

will be sufficient to provide for
...

Clearly

be

limitations and restrictions therein'

vestors

required payments in

would

specifically

i

the bonds.

on

bonds

bonds.
^ 'an obligation payable from a
special fund when the full faith
and credit of a state or any polit-

those

-

T S*Tf ^
entire

h
faith
and credit of

and interest
such

"First and most important

makes

of gov-

unconditional

an

cipal

and

when

due.

interest
The

the

on

bonds

obligation of the

PHA to pay the annual contributions

is

unconditional

and

has

,

promise

to

the

pay

necessary because it has a clear
principal. The
? of bond has a
definition of this

interest

and

issuer of this kind

been
the

held

to

United

pledge the faith

States

for

such

of

con-

j

term is included

in

the

proposed

importance

it

rule

because

assumes

law

the

au-

definite, absolute
obligation to raise the money to
the bonds, increasing tax lev-

pay

tributions.

The fact that Congress

found it necessary to amend para-

graph

7

specifically

.

thorizes banks to deal in, underwritie and purchase for their own

^class de-

or

fined, "general obligations of

law,

State

of any

or

au-

any

It is recognized

that

state and

to deal-

cured

without excep-

"general

obligation"

municipal bonds

b

is the

Sometimes
faith

and

the

jssuer,s

underwriting and purchase

are

led

se-

o{

This type of bond

most

one

it

frequently issued,

is

known

credit

McQuillen

porations"

sion thereof."

tion

ies if necessary.

political subdivi¬

asso¬

restric-

and

lions herein contained

is not secured by the full
faith, credit and taxing power of
tities

political subdivision

,

corpora-

any

any

Definition

account of any

own

stock

obU

an

special fund

a

the issuer but to which other

state,

Daily

ment

the

Clear Cut Meaning

by

provided

permitted

payable from

the

Buyer, stated (page 9):

means

by

tlon wlth the obligation."

the

nothing herein contained shall

shares

or

„

such

by

The

any po¬

thereof'

supported

and

It

..

in-

may

prescribed

(e) would include

tion

n°t be general obligations of the

"Pitfalls

this

as

.Y The second
sentence 0f subdivi_

legally binding instrua

ni?<T?a V'

int0 tbe fund of amounts whicil

further definition of the term 'in-

regulation

any

^

bonds, notes and/or de-

vestment

of

Section

rule

anv

any

faith

ligor.

copartnership,

securities

Not

Power

obligation

obligation

full

corporation in the

bentures commonly known

by the tax-

obligor

sion

payments

eral

litical subdivision

evidencing indebtedor

secured

of the

D0Wer

pro-

require that

the

The phrase 'general obli¬

gation of

marketable

mean

be

not

secured by the taxing power of
the issuer; and the bonds would

Faith,

of

'investment

of any person,

ness

tion.

Treasury Department

Washington 25, D. C.

"(e)

regulation

As

.

ciation for its

Saxon

of

or

re-

Comptroller

mav

thorize the purchase by the

Comptroller of the Currency
U.

by

Taxing

proposed

thereof"

State
and

cept

un-

and

Full

its

Comptroller of the Currency. Ex-

authorizing

Bonds

the

secu-

for

bond

does

of

of

Would by Louis

Thereof"

by

of

Any

Political

Any

Revenue

"general

state

an

citing objections to

recent

fine

own

ridings

National Banks to deal in and

derwrite

issue of

purchase

the

as

vestment

We reproduce herewith the full
text

the

order,

its

limitations

'

Currency

the

curities'

and

of

or

of

account investment securities

own

obligations,

senior

se-

Provided, That the

may

vestment

Assn.,

Obligation

the Issuer

of, customfor

case

not underwrite any

Amyas Ames, President of the In-

Bankers,

account
no

rule

of

George Wanders Cited

"public

Definition

Proposed

Credit

account; and the association shall

under

responding' to Mr. 'Saxon's

In

invitation

the

upon

subdivi¬

by

(page 5):

backed

'general

Subdivision

solely

recourse-

Confess in

underwrite
3—

Secured

(12

dealing in

taxing

Errs

of

entities making payments to the
special fund because such entities
subdivision
thereof, having the would be obligated only to make
power
of general property tax- payments
to
the
special
fund
ation and enforcement.
They are (which obligation might be elimfull faith and credit obligations." inated
if the facility for which

undenting

Include

purchasing

and

J.

James

pro¬

(national bank) shall be lim-

Saxon's

Comptroller

power

Subdivision

24), the pertinent parts of

proposal allowing banks to underwrite

/

paragraph

amended

and

securities banks may

or

State

statutory

as

in

and ' selling
such securities and stock without
.

valid

ments

"General

,

Provisions

Seventh

the

sentence

(e) of section 1.3 of the

posed
in2f

Bankers Association

states

pre¬

securities^wnicp ale e

(2) The

curities and stock by the associa-

and

s

is

"The business of

3fffor full text of proposed

pp.

is

He

to

power

sion

supplied)

Proposed Rule

first

an

exam-

Division

nicipal securities

in "section 1.4 of the pro-

deal

which provide:

of

securities.

The

later
re-

(Emphasis

Where

to

"General obligation means

pre¬

limitations

securities."

se-

of the issuer.

controlling

U.S.C.

"Federal

21

Register"

1951

pies."

of

revenues

hospital, for

a

published

Bank

American

Cur¬

to

power

and

any

what

rency

the full faith, credit and

power

R.

of

Amyas Ames

granted

the

upon

Files,"

National

posed rule to authorize banks to

'

officially "in

tion

not

are

I Governing Pertinent

regula¬

is

the

may

or

which

Credit

any

airport

"Municipal Bonds," prepared by would not have any unconditional
:: Consequently, it is improper
George Wanders, then Editor of obligation to pay the principal of
for the Comptroller of the Cur-

of any

or

which

bonds

revenue

of

State

any

taxes

The "Guide For Municipal Eond

se¬

bank
or dealing in securities,

the definition would include

cause

broaden ' the

areas

of

or

of

^^0^1

defining "general cb-

of

levy

power.

not

lafoba£geurities VhkLre

political subdivision thereof," be-

to1

o n

Comptroller

classes oi

(e) of section 1.3' of the pro-

ligation

to

rest

governmental unit rather than by

the net operating

sometimes

Thus general credit ob-

ligations

"general

State

any

deal in or underwrite.

^tod^al ^ or underwrite

posed rule

reg-

shall

include

which

granted

of the

authorize

to

power

but

deficit which

any

sponsible.

account,

own

specified classes of

to

investment

not

(2) To the adoption of subdivi-

sion

his

explained
proposed
u

J*

Comptroller

the

Currency

Cur-

securities"

rency

law does not

the

because

Co m,p trolled

of

investment

scribe

grant to

^he

1993,

its

as

and

,

rity,"

Investment

Association, held at Chi-

111..

cage,

Municipal

annual

of

unconditionally

then

It

contained

for

scribe restrictions

granted by Congress and summarizes the facts involved in the four

fund,

may

underwriting

in,

purchasing

The

governing law. Mr. Ames notes PHA's special exemption had to b>e
recent rulings.

herein

dealing

<

is in violation of the

general

Thursday, August 1, 1963

to be paid from

are

the ; special revenues are also pledged.
In the latter case, the unit
agrees

as

political subdivision thereof."

bonds into genera! obligations,

principal

the

restrictions

curities,

boncb

to authorize banks to underwrite and deal in revenu

powers

and to metamorphize certain revenue

such

and

develop in the fund primarily

obligations of

discretionary

Comptroller

allowing

prescribe.

unit

cover

apply

Georgia Rural Roads Authority revenues. Mr. Ames' letter re¬
to

regulation

and

issuing

provides that the "limitations and
to

to the illegality of Mr. Saxon's

sion, Pennsylvania State Authority, Virginia Public School Authority,

sponse

under

Comptroller of the Currency

refraining from bidding, despite the Comp¬

troller's favorable dispensation, on

securities

the

unconditionally to pay the
obligation.
Ordinarily
interest

bank

a

in which

.

agrees

account

own

restrictions and limitations

decisions already

made, and with respect to proposed regulations, authorizing national
to

securities, but that

purchase for its

may

Amyas Ames charges the Comptroller of the Currency with step¬

banks

credit,

bank shall underwrite any

no

issue of

Mr.

gation, also called full faith

The law specifically provides

*.'

ping completely out of bounds with "de facto"

Specific

Law Is

.

1BA Challenges
Saxon on
'hallenges baxon

...

(3rd

"General

p.

full

a

"Municipal

on

(Volume 15,

as

bond."

Edition)

Corstates

477, section 43.05):

from

the

restrictions

tions therein
a

to

except

and

limita-

bond payable from

a

special fund for which the credit

of the

United

when

paragraph

States

7

pledged

was

already

ex-

cepted "obligations of the United
States"

indicates

clearly that the

term "general obligation of any
bonds which are payable from an state or of any political subdiviunlimited general ad valorem tax sion thereof" is not intended to
all

on

obligation

bonds

are

taxable property."

include

an

obligation payable only

,

Re: Proposed Rule

on

"Investment

Securities"

Dear Mr.
-

securities

by

Banks, published
Register

of

in

the

State
sion

21,

1.4

of

lzing

write
ts

the
a

1963,

regarding

(j)

to

rule

in,

an4 purchase and

own

account

a

thereof,

or

.

.

to

Banks

Power
to

undersell

for

secu-

Deal

of

to
in

any

subdivi..

.

to

the

Cur-

Authorize
or

Under-

Securities

authorize

a

bank

to

deal

in, underwrite, purchase and sell
for

its

curity."

own

account
,

a

ity

ing
by

of

in

for

the

payment

"public

se-

acceptance .of
the

financial

government

investors

of

the

are

this

community,

agencies

the

mean-

and

by

following:

it

is

particularly

nificant to note that in

sig-

1949, Mr.
,

J.

L.

Robertson

who

-

was

then

the

Cur¬

the

Committee

on

Municipal

Obligations of the National Assoof

Supervisors

Banks, described
tions

as

follows

"General

of

general

State

obliga-

(page 33):

Credit

Comptroller of

Deputy
rency

in

a

letter to Mr.

Barbour of The

fr°m

Obligations,

"Undoubtedly
special

revenue

there

and

entity

is

There

are

some

gen-

a

The best known type of municipal

ness

security is the general credit obli-

by

are

speaking,
inherently

higher plane of credit soundbecause

the

full

they
taxing

are

is

revenue

no

Metamorphism

authority

by

ad¬

supported

power

of

the

bond

payable

from

a

by the full faith, credit and tax-

general

a

-

special fund (which is not secured

ing

on

payments
.

ipalities,

general obligations

other

some

for

ministrative definition to convert

obligations which

broadly

of

the fund>

eral obligations of certain munic-

but,

credit

obligated

Unauthorized

Phillips

to be preferred over the

are

special fund when the full

a

faith

Municipal Forum

of New York stated that:

"Municipals," published in 1941
by

ciation

Section 1.4 of the
proposed rule
would

power

Finally,

into

of

Not Grant

Comptroller

-

States, bond. Illustrative of the unanim-

...

.

^he Law Does

rency

the

author-

public




United

obligations

write any

deal

the

or of any political

in¬

adoption of section

proposed

bank

of

lts ful1 falth' credlt and taxm£

invest-

Federal

proposed rule. The purpose of this

To the

account,

own

general

the

June

comments

National

or

letter is to object:

(1)

its

obligations

lating to the purchase, sale, underwriting and holding of invest-

vited

for

ment securities shall uot
apply

Saxon:

Notice of the proposed rule re-

ment

ing

power

of

the

obligation

issuer)
of

a

into

state

a
or

political subdivision thereof,
In

accord

comments,

we

with

the

foregoing

respectfully suggest

pontinued on page 24

Volume 198

Number 6286

.

.

The Commercial and Financial

.

Chronicle

unsecured

term

Long-Term Capital Sources

net

cost and otb:r advantages of private placements

which

range from

checks off

what SBIC's and commercial banks

ings of "best-efforts issues

It

investment

'most

■:>■■■■

bankers;

and

compensations

outlines

and

SBIC's

has

business
able

number

a

for

sources

;

include

Sources

mg,

One

capital.

public

finane-

to

I

for

The

in¬

or

ing

a

of

•

H Frederick-Franklin

try

cover

public offerings and merg-

to

=

,

ers-

^

-

,

and term

hausted,
also

current

financing, such

as com-

that

tests

will

have

truly

try to

been

long

go

for

normally

the

a

000

or

all

My

re-

a

$50,000,

least

at

of around $500,-

size

from

in

which, range

couple

a

to

of

ment

-

of

company
cases

caDital group
erouo
capitai
:

initial

a

be

is

the

paid

dividend

the

on

that

preferred

must

greater

economic

used

with
we

of

.

,

the

refer

to

new

banker

be

raised

cannot

living

business,

nor

clients to

risk

on

the
the

from

can

afford

this

he

to

type
ask

.

ability,

Ll

Before-Taxes
.

After-Taxes..;

.

__

1_

Net

of

note

5V2%

than

•

■,

i

■

at

15-year

a

$1

versus

million

7-year $1

a

5%% is $136,400 at

stock

an

where

of

issue

.

the

of

that

stock

common

price-earnings

multiple is low. Every

new

share

should

is sold

rate

if

Therefore,
stock

net

to

,Lower

is

earnings,

the

12y2%.
is

cost

illustrated in
The

sells

(after all expenses)
f

our

is

i

earnings, the

8%%.

This

is

1

table.

method

time value

on

of

money.

placing

If

vate

reinvestment

$167,000

at

a

15%.

pocket

Cost

advantage of the pri¬

placement

nancing

is
cost.

A

public

oveip

the

v

lower

$1

fi¬

out-of-

million

to

$3

million debt placement might cost
a

present value concept is a

theoretical

a

Out-of-Pocket

Another

cost

stock

If

and

earn

company

a

of ,10%

reinvestment rate of

at least as much as the old shares.

:

r

be

raised

company

ing

1^% to 2y2%, includ¬

investment banker's charge

an

a

Continued

a company

'

■

'!

"

■

C

..

on

income

.

«

$103,747,850

•

•

•

$

deduct (increase) in

allowances

on

long-term contracts

•

Net

profit—Per share outstanding at the close of the period

;

.

.

1

•'

.

3,533,041

on

page

un-

$

•

at

is

The

25

to

and

■>-

are

upon

necessary

3,333,041

5,727,872,
3,075,000

$

2,652,872

*;
$

"M

950,000

3,602,872

$2.20

$2.03

upon

estimates and is subject to year-end audit, adjustments

results.

The underlying contract estimates as at
will be revised hereafter. ;
'
v

shipbuilding contracts through estimates on the percentage-ofits other long-term contracts as billings are made thereon. The profits .so estimated, and
subject to the provision of such allowances as may be considered advisable, taking into account the
on

final contract settlements have the effect of including in subsequent accounting periods adjustments
indicated by the revised estimates and allowances. The amounts reserved as allow¬
which would result if the matters covered by the

to reflect the results

allowances materialize, and
at

'

;

.

$2,775,000

^

of the Company's business is with departments and agencies of

A substantial part
contracts

aggregated $2,450,000 at June 24, 1963, $2,250,000 at December 31, 1962,

1962 and $3,725,000 at December 31, 1961.

June 25,

.

the United States and the

be subject to profit limitations, renegotiation, and to termination at the convenience

therefor may

Government.

placement

is

nor-

,

.

;/.

of the

;

.

Quarterly Statement of Billings, Estimated Unbilledl Balance
of
,

Major Contracts and Number of Employees

*

June 24,
1963

are now interested in invest-

or

in

Billings during the period from shipbuilding, ship
versions and

notes or perdegree.

some

Estimated

The

institution is

period

,

.

•

/

.

.

.

Common @$8

$560,000
60,000
$500,000

$750,000

$666,666

$750,000

$666,666

Common @$12

.

.

.

.

.

250,000

250,000

375,000

$250,000

$250,000

$375,000

333,333
$333,333

$1.00

$1.00

$1.00

$1.00

and the construction of

The

such

1
.

$250,000

$166,666

$1,000,000

$1,000,000

25%

16%%

121/2%

8y3%

VS
s;

July 24, 1963

y'
;•

l',

4

$376,953,214

17,837

20,131

:

v.1'

y-

'll

■

' 1" •:

a

new

'

about $21 million,

65,000 deadweight-ton oil tanker for Humble Oil & Refining Company
forebody for a T-5 tanker for Keystone Shipping Co.
a

Company reports income from long-term shipbuilding contracts on the

income for any

(375,000 shs.) (333,333 shs.)

'u,

$350,518,330

Subsequent to June 24, 1963 the Company has received orders, at prices aggregating
comprising principally the construction of

■j7^

$128,828,394

-——>

$500,000

--

$107,114,366

unbilled at the

Equivalent number of employees, on a 40-hour basis,
working during the last full work-week of the period
—

6 % Bonds

6%
3%

25,

1962

long-

a

Present

$60,000
$1,000,000

June

con¬

repairs, hydraulic turbines and other work

balance of major contracts

close of the

type of security normally placed
an

;

Six Fiscal Months Ended

'

that

years

:




$
.

reflect the reductions in Federal and state income faxes

ances

Preferred stock of small

^r

$133,426,647

of completion of each contract, possible increases in costs not:included''in the estimates, guarantee liabili¬
ties, unsettled contract adjustments and other factors. .The performance of such contracts may extend over periods
as long as several years, and revisions in the contract estimates
pnd allowance requirements during performance

Financing

bonds

.' S

25,

1962

stage

neces.

largei in the last few

Capital, Pre-Taxes
Capital, After-Taxes

J

Company records profits on its long-term

recorded

too

at

not

large part

1962 have since been revised, and those as at June 24, 1963

completion basis, and

time

one

based in

information is

above

charges and is not necessarily indicative of the full year's

June 25,

pan5eSi pension fundSi and founda.
tions. The institutions have grown

S500"000

■

(Private Placements)

private

companies

in

June

'200,000)

(

•••••••

profit—Amount

.

$

•

•

Net

to an institution. Institutional
buyers include insurance com-

they

"4v

7,883.041

4,350.000

••••••

«

or

mally the private sale of securi-

so

*■-

•

• •

* ■

profit before allowances

The

or

ability

financing

intervals

Institutional

A

••

Add decrease

and

op-

Enough capi-

;<"•

Incremental

Oper. Earns. Required to
~Amt. of Capital Raised
of

statistically

million conventional term loan at

Deduct—Provisibn for taxes

invest-

offering

the

and

equity

with such

earnings

Taxes

Cost

long-

sljort-

would•• be

Operating profit

large enough market for

his

.

their funds

Earnings Per Share:
j 250,000
Shares...

Cost of

to

straight debt. At still greater cost

shipbuilding, ship conversions
hydraulic turbines and other work

and repairs,

II

Interest

Ratio:

the

savings

a

1963 '

-

_

-After Issuance of:

Profit

value

relative

Six Fiscal Months Ended

Cost of Capita]

Profit

has

June 24,

capital to

new

public

a

of

tried ventures.

Operating

greater

debt

a

capi¬

on

has

up

risk "ties

a

friends and relatives. The invest-

his

the

earn

situation for ad-

a

sary.

history.

no

a

frequent

company

or suggest
surest that
that
or

capital

■make

a

its

savings. The higher th^ rate

term. It may be shown

"

-ment

which

reinvest

that the present value of the cash

cost

.

at

to

stock.

program

capital,, the

open

are

new

inventor

or

.

risk

that

so

"

capital

relatively

company

.....

should

tal

frequently asked question is

most

which

AVzM

t0 provide new facili-

compete profitably.

with small earnings or the brand-

In

tal,
term

be

rate

able

ended June 24, 1963 and June 25, 1962

maturities

the company's products, manage-

of

Ventures

new

selling $1 million worth of 4V2%
would

is

company is able to

preferred

stock

Hhe

upon

company
cash

long-term debt
short-term will de¬

Gross income from

*

elude

t

the

is

a

3%

value

the

Profit and Loss Information for the six fiscal months

become liquid eventually through

hundred

Young Companies and New

to

with
be

much
over

pend

participation with commercial

means

in

millions

many

sources

six-year

or

portpnity for the

In

I

A

concept

made

are

ment banker must foresee the

normally

dollars.

what

this

money.

T

initiating financ-,; merger. Necessary ingredients in-

mergers

thousand

will

we

Loans

In appraising

see

we

in most situations.

involved
or

loans.

ditional

time

ings

re¬

6%

a

has

maturity has definite value.

i

This could. be provided by a
Sro]4P °f individuals who can afa large risk, by the SBIC's,
and by organized venture capital
companies, of which , there are
some both on the East and West
Coast.

very

types of businesses and try to

be

long-term

manufactur-

or

n®cessary equity capi-

more.

year's

a

of

net worth

be helpful

notes,
would

sold to net 12 times

concept

of

cost

retained

longer term

a

Newport News Shipbuilding and Dry^ock Company

employees, and amount

five

.

differ-

investment bankers,

As

6%

or

bracket

eight, times

of

types

Although

u^ks

will

Cqmpany that has had

earnings

ous

banker

to

apply

of

,

successful five-year history, afterand

met.

of the

some

generalize.

tax

be

debt
How

after-taxes. The economic cost of

fers to the economic cost of vari¬

addition to long-term debt,
' additional equity is needed, an investment banker may be .willing

I

investment

an

to

tax

public financing.

The cost-of-capital

for

may

economic

reinvest

qualifications

ties> The gBA alsG has

Company's

term.

over

secured

ex-

situations, although it is

difficult

issue,

50%

after-tax

sales, and type of enterprise—

^.0 jq years

marks will be primarily intended

.

bond

profitably

simple illus¬

raising $1 million through

out-of-:

Cost-of-Capital Is Lower

are

to supply working capital and

assume

for

sources

and that the

is

need

to

The

a

can

cash in its business

unwilling to

are

certain

has

wjth

.

well io

is

mercial banks,

ent

,

discussing long-term financI think it
normal

con¬

There

clear by

tration.

cost-of-

lower

the

ing business. The SBA only makes

also

that

certain

source

capital to be chosen. This

after-taxes

important requirement

wholesale, retail,

briefly, I willT

In

Under

requirements

number of

about it. Very

mg

versus

identifying the small business by

;kho wh

is

the

pocket costs of private placements

some

10-year periods and

most

SBA

less

-

the

for

with

the

provide the capital requested. The

and

perhaps

capital

saying that they

grow¬

area,

of

include

and

influence

can

be made

capital concept, the present value

Source

a

of

typically in capital budget¬
it

13

is that two banks provide a letter

fi¬

nancing, since
this is

to

5

various

private place¬
stitutional

private place¬

nancing particularly attractive for
Reasons

ing,

Therefore, preferred stock

aspects that make this type of fi¬

tal.

amounts up to $350,000.

emphasize

ments

demand

may

more

ditions the SBA will make loans

like

would ;

but they

ment I think that there are several

of merger

company

ministration.

private

placements.

be possible to subordinate

history is the Small Business Ad-

merger,

and

may

the company that needs new capi¬

as

source

small

very

common

purchase common stock.

concept,

avail¬

of

new

to

With respect to a

acquisitions to the smaller company,

Today the small or medium-size

into

note which carries war¬

or a

senior position.

a

do; notes that public offer¬

can

some

company,

be involved, such as a

such notes,
.

intrastate issues" are avoided by

or

the

of

convertible

rants

determining the preferable type of financing. Discussion stresses the
I $1 CO,000 and up and most frequently exceed $500,000;

Where

<

illuminating rule-of-thumb approach to

an

notes

or

leaseback.

a

may

note
stock

excellent guide to various sources of long-term financing.

They also should obtain

ma¬

unusually heavy with

worth

equity

Small- ar.d medium-sized companies should find in this compact rean

a

respect to the earning power and

Department, Schwabacher & Co., San Francisco, Calif.

view

by

the debt is

By H. Frederick Franklin,* Underwriting and Industrial

.

mortgage notes

years, or

For Small-Medium Business

.

with

note

turity of anywhere from 12 to 20
secured

i

(445)

period will therefore

vary

from the billings

on

percentage-of-completion basis;

the contracts.

By Order of the Board of Directors

R. I. FLETCHER, Financial Vice President

:

The Commercial and Financial Chronicle

14

Electric

ginning with Sept. 5 until Dec. 6,

Output

Carloadings

The State of

TRADE and INDUSTRY

steel

Trade

Retail

output

Price Index

Auto

Production

There

was

Commodity Price Index

in

from June

row

a

1

July 13-ending week and,

in

dropped

above,

explained

as

the last two statement weeks.

"Optimistic" is the word used by
52% of the Purchasing Executives
when asked to describe in a word

"Satisfied"

picture.

business

present

the

about

attitude

re¬

and "con¬

ceived 25% of the votes

cadmium

cadmium
shortage has not yet been fully

report

On

in

that

note

June

the

production

Yet when

fittings.

51% said

Aluminum

the up side are:

figures were not too

asked the same question,

vY:'Y

zinc, cornstarch,
plywood,
and
welded
lead,

the
in

end
of

tion

of

last

an

amicable

Steel

are:

market

is

dampen

any

thoughts

ethylene.

capacity will

trend views are

These business

views of

the composite

on

National Association

of Pur¬

.

short

In

and

supply

Cadmium

are:

Business Survey
whose Chairman is

chasing Agents'
Committee,
F.

E.

Vice-President-

Andrews,

Steel

"better"

figures this

order and production

month outnumber by a

that in every year

have

Preliminary figures compiled

ago.

than

____

Worse

Same

Better

July

advices

graphic
the

32

47

21

34

51

15

ended

week

31

48

21

54

13

weekly clear¬
those of

obtain

possible to

15.6%

were

above

the corresponding week last year.

Our

Production

Saturday,

all cities of

(

States for which it is

the United

totals

preliminary

demand

boosted by strikeEuropean

also

excess

dustry
tions

June

33

Optimism

Business

Expressed

until

GNP

its

noteworthy

previous

quarter

fourth

expected

upturn, and fear of a month-

strike,

rail

away

but

slow

lead to

may

a

steady reversal of steel

output trend despite large stocks
of

steel

still

This is the time

of

when

year

the so-called "summer doldrums"
In

in.

of

measure

asked

its

effort

an

this,

to

some

Committee

the

members

get

whether

they

planned to shut their plants down
for

vacation.

a

42%

58%

said

said

"yes," 23%

"no."

65%

week,

said

the

Of

"yes";

42%

who

planned for

for

two

12%

for

three

weeks.

in

spite

of

u

ingot tons

700,000

down from

—

nearly 11,500,000 in May but 60%
above June,
the

tons or 5,509,000 more

59,600,000
than

last

ninth

the

in

week

Bostbru_,.__

855.472,

554,263

City

Steel's

"summer

+24.1

1,240,971

1,054,000 +
,820v204.+
530,939 +

Kansas

4.0
4.2
4.3
4.4

+

row

a

Stays

Nine

Past

23.4%

Year

supply

important

factor

ventory
tic

liquidation,

tone

in

the

the

optimis¬

remarks

the

and

lack of serious deterioration in the

stitute,

(S9.6%)

The

Materials

Inventories

Inventory accumulation ground
to

virtual

a

halt;

the

liquidation expected by

runaway

failed to

some

however,

Perhaps it

appear.

is too early. Next month's figures
will
bear
careful
analysis. The
number

same

report

22%,

higher
A

cline

edged

base

put

and

tion

Christmas

only

2,626,000

year's

Louis

St.

38%

expect

their

112
100

expect their stocks

on

Dec. 31 to

be

This
slide

exceeded
.

7,917,000 net tons. This

sum

plan

through July 28 period in 1962.

no

recall

change.
that

noted 38%

port
were

It

our

of

is

interesting

February

Now it would

seem

as

a

hedge.

that the

same

number plan to lower their stocks

by

Sept.

30,

with

carefully

planned

readjustment

into the

end

continuing

of the year.

Specific Commodity
Considerable

price

Changes

activity

oc¬

curred in July, with a slight edge
on the up side. Lumber and
ply¬
wood

tags

reflected




the

Out

West

week

of

the

ending
30

of

production

production

1962.

July

weeks

of

7

market's

few weeks

now

automakers

ment

in

from

for

13

the

weeks

consecutive

week

Other

Some

ending

weeks

Feb.

2

advances

During, those

13 weeks
weekly increases,

output advanced 36.8%
to

2,548,000

the fall

of

net
1954

experienced such
sequence

of

tons).
has
a

(1,863,000
Not

the

since

industry

long sustained

consecutive

weekly

with the settle¬
months.

about two

steel

operating

capacity. In

1962

it

machinery,

losses

in

and

such

mills

think

mar¬

orders

be

does

not

will

for

few

a

have

that' the

market

won't

improve

materially until the vacation
ends and

season

automakers start

of

to

August

as

drop
users

inventories

to

10
start

they

15%

in

liquidating
^

built

550,000

tons
their

(estimated

—

the

to the big steel

auto

companies.

6.25

consuming

predicted

As

ing their inventory correction out
over

this helps

while

the current

ease

contribute

will

it

picture,

But

months.

of

period

a

with

gradual recovery

a

October, and

on

the general

depends

business picture at

time.

perspective,

weekly
were

said

in¬

passenger

More

'63

GM

week of

(N.

year

industry

plants

runout

and

South

GM

up

ago,

as¬

reached

last

facilities

winding

week.

a

136,172.

model

J.)

last week. In

totaled

Corp.

were

compared

cars,

week;

at

Linden

Gate

(Calif.)

full slate last

a

elsewhere will

plants

end the company's

record

run

this

closed

out

'63

week.

Chrysler

Corp.

Friday at its Detroit Plymouth

plant and also at Los Angeles and
Newark

Dodge-Plymouth

(Del.)

Chrysler plant

plants. Its Detroit

ended two weeks ago;

(Mich.)

Hamtramck

and St. Louis complexes

will close this week.
American

for

run

Motors, after

that

also

last

operations

'63

ended

Friday. Studebaker assembly
for

resumed

Lark-Hawk

the

'63

for

maker

wind

to

up

is yet in

year,,

production

standard

of

Along with 11 Chevro¬

cars.

plants,

erated

<

Co., which will be

auto

overtime
Ford

but

car,

last month.

late

Motor

last

Avanti

the

output ended at South

operations for the

let

record

a

company's Rambler

Ford lines

seven

Saturday

through

op¬

last

of

week.
Of

last

programmed

output

week, GM Corp. was expected to
account

for

59.8%;

23.3%;

Ford

12.1 %; American

Chrysler Corp.,

Motors, 4.8%, and Studebaker, nil.
Rail

in

Over

Row

a

Loading
the

of

Year-Ago

10% Over 1962

freight

revenue

ended

week

12th

Loadings Up

Freight

Week

in

totaled

July 20,

are
moderately
587,693 cars, the Association of
less-than-expected American
Railroads
announced.
severity of the correction period. This was an increase of
79,968

steelmen

This

times
ter

not

does

that

mean

lean

be avoided. Third quar¬

can

earnings

will

sub¬

down

be

profitable

the

from

stantially

to

operating rate drops close

50%

is slow

of capacity—and

recovering

—

third

quarter

earn¬

third

was

entire

quarter and the

a

more

cheerful than

ago.

In the third
one
major

year

only

then,

quarter

for

outlook

the

However,

over.

earned its dividend, and

company

dividends

slashed by several

were

And

some

steel

months.

bad

is

as

over

the

about

with

However,

most the feeling
worst

companies are

pessimistic

frankly

persists that the

and

it

was

not

as

by

tons)

U.

S.—already

in

'63

at

an

all-time high for any model year

and

July, Ward's Automotive Reports

foreign suppliers.
month of de¬

said.

also

set

a

peak

for

29,575

any

cars

1962, marking the
of

5.3%

or

12th consecu-

and

increas^

an

six-tenths of 1%
the corresponding week ip

3,556

above

or

cars

1961.
Ton-miles

generated

by

car-

loadings in the Week ended July

20,

1963,

estimated

are

proximately

10.0%

of

billion,

12.5

over

the

at

ap¬

an

in¬

corres¬

10.9%

ponding week of 1962 and
over

1961.

There

cars

reported

one

or

more

revenue

highway trailers

or

highway

were

loaded with

13,858

cars

in the week

July 13, 1963

(which were

in

or

7.3%

or

an

increase of 948

above

of

29.2%

over-all

week's

that

ponding week
cars

con¬

(piggyback)

total). This was

Production of passenger cars in

coal

corresponding week in

tive weekly rise,

ended

Beat Rail Strike Threat

the

of

above the

included

to

the

vacation.

The loadings represented an in¬

tainers

expected.

of

week

annual

crease

crease

major producers.

final

the

by

miners'

released.
If the

15.8% above the preceding

cars or

week when loadings were affected

being

second quarter figures now

—will

a

in

service

And Ton-Miles Up

in

considered

be

be¬

threat.

division,

highs

159,040 made

same

the

have

While the optimistic notes

will exceed shipments from U. S.

August will be

the

relatively slow recovery over

a

for

consumption
million

149,707
with

is

earlier, the automakers are draw¬

about

margin

Chevrolet
new

statistical

Ford

Peak Auto Output Set

August

at

relative

market

the

plans

strike

stay in rail talks developed.

Bend

of

stabilization

protection.

Users will trim stocks by

which

—

four

or

their ship¬

expect

the

were

output. Operations this week

cars,

re¬

chew-up—until

behind

factor

One

summer

Steelmakers
ments

three

are

set

November.

it

convinced

are

and

and

not

probably

rate

rail

for

cars

units

many

week, entire General Motors

singly,

Sep¬

ings will not be anything to crow

weeks.

more

observers

in

gradual

be

shipments will
the

there will

mean

early fall. Instead the

or

second half is

Most

of

into

dipped

rebounding

major

a

tember

the

tom

will

rate

the low 40's.

This

industry origi¬

August

the

Corp.

last

orders,

probably not drop below 50%

others say demand won't hit bot¬

the

consecutive

appliance

—

August

the basis of current

On

already reached their low point;

strike

of

model

agricultural equipment.

as

through April 27 out of 20 weekly
1963.

steel

turning out their 1964 models

and

until

the

cheered by the

the next

starting

industries

seasonal

periods of steel output
in

the

be

Last

June, the worst will be

in

over

most
/

over

severe

the correction

completed

This year,

ment.

average

changeovers, Steel magazine said.

away.

rose

on

that the Big Three

are

weeks

those

of

will

mainstay

year's steel output, production de¬
10

based

labor

following the March labor agree¬

1957-59.

Steel Market

Construction

that

in

for

Construction to Buoy

events

clined

Last year,

not

was

out
of

cause

market

and of much shorter duration than

to

this

re¬

members

our

building stocks

43.7% greater than that

the

for

-

July for the

lower, than June 30 levels. Ap¬
proximately half of the members
to

Index

Iron

steel

settlement will be far less

that

*

weekly

valuable support and help to off¬

output

the

the

through September,

May

27-

that

means

following

November. The rate then

104.1

said the

semblies

106

achieved

ending July 6 through July

was

89

99.6

sta¬

August,

117

railroad carbuilding—will provide

week by 23.4%.

27 came to

industry—

has

Age magazine reported.

August,

•

manufacturing,

July

in

out

July,

for

dustry output last week included

outlook, then, is for ship¬
ments to hit their low point in

was

Steel production in
week

113

;

Ward's

The

The

high

The

1961.

week's

last year's

stbcks

Sept. 30 to be lower, and 42%

on

tons

126

r.

•

set

ending

stocks:

produc¬

29-ending

149

107

120

Southern

kets

compare

30

bottom

will

order

137

Western

past two years and last equaled in

and

June

lowest
Dec.

rate

114

the

1957-59

order

110

25-ending week unequalled in the

levels

31, inventory

the

weekly

net

Sept. 30,

with

marks

holiday week!

mid-March,

Dec.

the

the

members how they expected their
to

below

was

since

and

asked

it

and

period's average weekly out¬

27%,

question

4.3%

past nine weeks. Last week's de¬

June,

17%, report lower

special

output

to

eighth weekly decline out of the

The

levels

from

up

stocks.

in

as

week

week

steel

in

peak

nally programmed 628,000

Drop

bilized and the market apparently

93

___101

previous

scheduled at similar levels before

Expected

the autumn months.

week

ending

1962

to

1,856,000 tons

in the July 20

The

dropped
Purchased

the

for

was

against 1,939,000 tons

as

(*104.1%)
week.

figures is encouraging.

production
July 27

in

As

Steel

92

Total

ended

Drastic

as

96
91

;

sustaining

upwards of

made

month.

the

Not

88

Chicago

an

price strength in the market.

91

Detroit

is

scrap

in

84

Cleveland

In¬

of

ton.

gross

a

Youngstown

Cincinnati

Steel

$25.67

Pittsburgh

•

doldrums" and the anticipated in¬

93

Coast

East

Buffalo

43.7%

and

Iron

Ingot

July 20

July 27

North

According to data compiled by
the American

1962

28,

Week Ending
District—

Week, and July's Output Exceeds
1962 Period by

12.3%

is

1-July

Production for

Ago

-

which

Jan.

♦Index of

But

Weeks

Above

the

production of 59,923,000 net tons.

4.3% Decline Marks Eighth
in

Drop

(*20.5%)

at

recovery

January-June, 1962.

For

week

limited

A

1962's total output for

year's first half being almost

above

1,098,000

unof¬

the

1955,

Opera¬

of

rail tie-up, auto

a

cars

of

the

June's steel output came to 10,-

%

1,290,390.

and

Neverthe¬

the

Chicago

Philadelphia

one

weeks,

less,

York__

60%

to

659,763

pulled

traced

New

poured last week.
close

in¬

the

the

mid-year rate of about 85%.

to

due

hand

on

earlier steel strike misgivings.

tons
,

1962
$18,477,989 $14,'885,124
1963

1,845,000

estimates

tion in event of

makers will assemble

ingot production this

es¬

possible distribution disrup¬

but

ters follows:

,—1 (0t)0 omittfed)

on

apparent "rushout" to

an

the month,

flect

July 27t—

cape

Steel

are

$27,805,- this
year,
the cumulative total
737,609 fqr the same week in 1962.
output of ingots and castings since
Our comparative summary for
Jan. 1 topped the year-ago period
some of the principal money cen¬
with
a
total
of
67,318,000 net
"\Jveek End.

In

compe¬

ficial capacity compared with the

*

Encouraging

for

that

tons

to keep

serve

rising

from

The

at

stand

shrink¬

re-

against

$32,134,333,543

July

chief
indicate that
the

from

cities of the country,

July 27 clearings for

figures

latest

the

in

by the Chronicle, based upon tele¬

ings

June

clearings

since 1958, July
attractive

less

been

Orders

set

Thursday, August 1, 1963

intensified

week to be less than the

in

GNP

statement forged ahead of a year

for

June.
New

Week's Volume

noted however,

order and production

new

mar¬

less attractive than

must be

It

fair

reporting "worse," but

gin those

the figures are
June.

new

real

pace.

Bank

reporting

hike

buying.

prices

Clearings 15.6% Above 1962

Bank

Corp.

Those

will

price

of course, was

sumes

Ludlum

Allegheny

Purchases,

and

further

growth in the ECM countries re¬

plywood.

Look

in the Feb.-May period

as

hedge

bags,

apparent

just past. Total steel demand then,

scrap,

multiwall

(non-strike)

returning buyers'

a

until

phthalic anhydride, and trichlor-

sugar,

anticipa¬

in

May

agreement became more marked.

"concerned," 15% "satisfied," and

based

.

production,

contract

only 27% "optimistic."

the

.

Steel's price composite on No. 1
settlement,
output decline which had set heavy melting grade of scrap held

surges,

side

down

the

On

labor-

steel

21

the June

Since

management

Evidence of

lumber,

far from current levels.

generally

weak.

the new order and products,

ago,

year

the

on

Chemicals

determined.

cerned" only 20%. It is interesting

a

stock¬

government

of

releases

pile

were.

to

the short supply list.

on

effect

The

and plywood joined

strike

Coast

steel

backlogs,

(1,- tition, and renewed emphasis
tons). quick deliveries.

net

through July 6 when output rose
for the

ing

sustained decline of

a

six weeks

Failures

clining

30.4%

to

rose

1,958,000

to

502,000

Food

Business

of 1954 be¬

the autumn

In

rises.

Production

Steel

their

.

(446)

the

corres¬

1962 and 3,128

above

the

1961

week.

Cumulative

piggyback loadings

Continued

on

page

34

Number 6286

Volume 198

...

The Commercial and Financial Chronicle

.

of

MUTUAL FUNDS
JOSEPH

BY

C.

assets

June
•

•

(447)

and

$37.71

share

a

/

24, and

:j!

*

$544,481,
of

the

*

B

each share

stock, in the first

Net

on

half of the fiscal year to

Bank Fund's Milestone

In

the

last

earnings
The

Investors

tutional
marked

86

gains

which

of

State

York

for in May

It has but 107 share¬

operation.

holders,

savings

are

New

banks.

The

and

departments

bank

pension funds.

Its board of

of

around

bankers

the

$144,626

were

fund

28%

and

the'

capital

and

for

the

period $2.8 million. The

was

96%

over

stocks

common

invested

latest

at

in

report,

against 95% three months earlier.
Well

and

if

of assets

the total

American

Telegraph
The

18%

over

utilities

21%

directors, of course,

limited to

is

pair

a

31

realized

quarter

12-month

remainder consists of bank insur¬
ance

March

011

at the middle of 1962. During

latest

completed 10 full years

the group

39%

Mutual, Fund

milestone,

a

that

quarter

published by Insti¬

ended June 30

cf

the

for

report

with

is

put

in

approaches

Telephone

(214%)

bankers

are

&

lumped

in.

Telephone

in

state, with nine of the 15 mem¬ the category of communications—
bers representing New York City the only issue in the
grouping.
banks. President is Cornelius

area

C. Van

Patten, who also is Presi¬
of

dent

Savings

Binghamton

'

which

Bank,
v

situated

is

in

the

central part

of the state. All in all,

the

composition

fund's

bespeaks

tidy balance.
Institutional

ket

carried

Investors

over
mar¬

On June 30, the

operations.

current

total

notes,

report

asset

V valuation of the fund attained
high

new

for

quarterly

any

a

re¬

porting period. Net assets totaled
$94.3 million,
ilion

from $87.6 mil-

up

March

on

and

31

higher

by

50% compared with the $61.4

over

million of assets reported on June

1962. Principal factors in

30,

•

latest

quarterly

rise

assets

the

were

$2.3 million in unrealized market
appreciation
net

invested
and you

million

$4.3

and

of

asset
30

value

Both

these

of

the hciiddle of
was

the

For

funds

More than $1 of the
in

foods,

main

in

health

a

long

of

mutual

the

Invest¬

to

from

$18.4

$23.7

1962.

at

-;y,

Any investment

carried

assets

billion

billion

the re-,
June

at
the

middle

can

re¬

betterment from the dreary
record

tors

over

.

is

decade

one

of

blue chips

and

high-grade equities.
Unrealized
vestments

net

gas.

&

The bal¬

vequippers

assets

This

$10.51
the

cantiles

(Federated,

Penney)

equities

Sears

such

and

■'%

automotive holding. Finally, there
the

transportation department:

General American

Hertz,

Southern

Pacific

U.

and

Transportation,
Railway,

S.

into

space

Lockheed,

Union

Freight.

Its

is modest,

with

Grumman

representing

less

June

months

31,

Cessna

and

2*/2%

than

incidentally,

Of

acqui¬

are new

sitions.

of

fund

tirely,

all

fields.

Fe,

latest

of

They

them

are

A

*

Cash

earlier

of

equivalent

$38,997,963,
At

share.

the

$36,386,302,

1962

*

Net

value

asset

$7.75

net

increased

assets

during

vestors
rose

to

Inter

a

(U.

S.

of

were

a

of

year

per

'

,

$15,445,795,

Net

was

$5.11.

at

the

Total

net

$71,191,099

of

May,

Dec. 31,

on

1962,

on

$13.18 at March 31 and $12.79

by

The

generally

good

Connecticut '.business

U.

would

S.

Treasury

recommend

fund

be

exempt

sions

of

proposed

the

from the provi¬
interest equal¬

ization tax legislation

bearing

business
half

first

The Funds

of

as

or

costs.

June

30

net

or

$45.55

30

40%

on

of its rights offering which

and fi¬

Individual

sales

over

and

in

rose

totaled

share,

a

corresponding

months

210,426 of assets and $41.15
Dec

31,

1962, and

a

$35,share

Connecticut

Business

logical and economic changes that
have

affected

New

the

successes

ginning of the seebnd half of 1963

trusteeship
of

off

scattered hints of ^ level¬

future

in

to

months,

Bank

Connecticut

The CBT

and

ac¬

Business

Connecticut

by The

Trust

Co.

Business Activity In¬

Haven

It summarizes the

has only

ing

Trends

deals with the staggering techno¬

of

in¬

shows why

and

dex

in

June

stood

at

the 1957-59 average,

124.6%

of

bare# above

Will Be Published

to-lie in increased

freight, piggy¬

back operations
merger.

The

and possible

concludes

article

with steps taken by the
cut

business

Connecti¬

State

community

Legislature

to

and

assist

New Haven.

August 8 issue of the CHRONICLE will contain a

comprehensive analysis of the common stocks bought and

;AV%

'THE

by 89 mutual funds and closed-end investment com-

panies with
•

TELEVISION-

June

COMMON

combined

net assets of

This

STOCK FUND

FUND, INC.

of

59th CONSECUTIVE DIVIDEND

GROUP SECURITIES, INC.

;

,

most

A

Electronics

for income afid

mutual

fund

.'%:a%..

through seasoned

share from earned in¬

common

stocks selected for

payable August 30,

1963, to shareholders of
record August

1,1963. Div¬

reinvestment

their investment

penetrating study will spell out the issues

fund

quality.

issue is another in

Regular advertising rates will prevail
for space

in this important issue.

The COMMERCIAL and
City

Illinois

in next week's

CPC

PARK

FINANCIAL CHRONICLE

PLACE, NEW YORK 7, N. Y.

.State.

Tripp
President

the managers of

Name.

July 25, 1963




survey

Address.

120 S. La Salle Street, Chicago 3,

disfavor by

continuing quarterly series on the subject.

25

Chester D.

or

Mail this advertisement.

date:

August 1, 1963.

.

pos¬

sibilities

a

a

on

investing

growth

dividend of 3<fc

declared

our

dollars

gigantic fund industry in the second quarter of 1963.
The

The Directors of Television-

Fund, Inc. have

the

17 .billion

30, 1963.

which either met with favor

ELECTRONICS

August 8

free
The

RECTOR 2-9570

DISTRIBUTORS GROUP, INC.
80 Pine

hope

.tjie railroad's survival appears

$32,266,500

compares

prob¬

thq two year

QUARTERLY FUND SURVEY

in¬

per¬

The feature article in this issue

$38,976,973,

against

life

May and

Report

totaled

above

This

assets

of

year-to-date

the

on

the fund's investment of the pro¬
ceeds

strong

the

June 30, 1962.

the

ago

year

1962—exceeding the U. S.

lems and

Trends, released July 31

Register.

noted.

be¬

Treasury

National

letin

insurance

the,

at

en¬

and

of

during

a

of 6.4%.

improvement in banking

railroad.

stocks

Oil, Santa

5.2%

1963 is evident in the

of

cording

different

with

impact

status

Department in substance that the

in

seasonally in

state's unadjusted un¬

the U. S. ratio

June

On Promising Level

and

Japa,ji Fund reports it has been

period

declined

ity of commercial banks, the bul¬

Connecticut to Remain

,

$70,088,587

averaged

same

Unemployment

The

activity

of

from

1963,

has

and

employment ratio of 5.1% in June

Business Activity in

$73,489,465 (Canadian)

end

employ¬

24,200 from Janu¬

formance.

in¬

assets

Connecticut

total

asset

$13.57

to

rose

on

year.

in

May, 1963, compared with May,

in

on

31, 1962, end of the fiscal
The figure on June 30, 1962,

state.

nance—especially the loan activ¬

Fund

$5.61

the

awards

30%

than

earlier.

share

June

1962.

The

%

•

In¬

dollars)

compared with

creased to

in

and

rejports that net

more

value

a

Fund

increase

from

assets

Continental

-

$6.34

May 31,
Dec.

to

compared

and $94,-

❖

the

to

publication,

1962, but increased

at the end of 1962.

shares

in

1.4% higher than the
in

mid-1962.

at

assets at June 30
an

*

of

sold

idend

at June 30

half-year to $122,156,373 from

from
*

and

Whitehall

a

$20.23

or

car

^pril through

contract

According
bank

at the

Shares reports

*

were

$21.17

of

from

ment increased

share

that

$22.26

to

end

describes

come,

$13.86

898,973 at June 30, 1962.

to

equal

the

1962

share

share. At March 31 net assets

indicated

—

passenger

recorded

ever

June.

June 30 net assets totaled $41,-

005^917/,

value per

Total

.A

booklet-prospectus

per

and

$110,037,310 at Dec. 31

*

the

above

non-residential building.

three

$9.68 against $8.79 at the end

was

earlier

announces

in

7.2%

rose

new

Construction

at June 30

the

Gulf

Interchemical

total

were

$14.62

quarter

of four

out

got

asset

1962.

*

advised

the

against

Selected American

share.

a

sales

car

June, second highest three months

A'-

start of the year.

$77,453,847,

$13.13

which

—

quarter of

a

$15.17,

was

total net assets. Cessna and Grum¬
man,

'

reports

assets

net

Asset value per share

totaled
a

a year

or

Fund

and

Cola and General Motors, its only

is

30

:. A

*

Corp.

32,000

registrations

top-drawer

Eastman Kodak, Coca-

as

close

Dominick

share.

mer-

with

share

per

30

$14.41

or

$100,438,826,

were

Xerox),

of

A."AAA-! A-'" A-".'

*

June

on

compares

Pitney-Bowes

and

*

$116,823,536,

at

*

■ ,

Investors

New

1962 period

same

the

by

first

ahead of 1962 in May

June.

ary
&

of

gain of about $40 May showed continued strength in
works
but
weakness
in
million from the start of the year. public

Century Shares Trust reports that

at

the

a

'

A'AA AA<: A

(International Business Machines,

at

appreciation

million,

vestment

'■

"A A-1*

June

at

com¬

Dec.

on

$18.06

the

first half of 1963

per

compares

or

in

ran

—

and

rose

$18.60

or

$141,350,812,

$341,692,717,

were

on

1963
Fund

wijth

that

end

of Institutional Inves¬
the

that stresses

$26.7

1962.

$31.75

and

the

But: Abacus Fund
reports that at June

solid accomplishment with a port¬
folio

1962,

share

a

at

u

group

days of mid-1962, of course.
the

30

pared with $28.72

30,

30

S34.42,

was

recorded

fluctuated

:J:

share, at June 30. This

■'A-v

&

value

:i:

$153,351,390,

National

Carriers

June

❖

assets of Madison

were

;. A'AA

asset

V.

■

share, at the close of 1962.

share.

a

of

at

44
half

first

*

Net

stock

1962

or

earnings

#

Corp.

common

the

net

assets

$19,307,081.

Investors.
as

net

General

and

equipments,

office

Total

fiscal

62 cents

or

;.AAv.' A-,.\y .:•*

or

medicine

natural

and

includes

ance

During

of

body

net

total

them

port

electrical

,'/A

For

ypar

$631,341,

of

to

May 31.

$461,181,

share.

a

last

giants

categories

insurance,

of

some¬

remaining $2

solid

such

chemicals,

the skids.

Company Institute)

bound

of

are

1962, when the stock

on

(members

ment

com¬

March 31.

on

figures

on

the $208.58 per share at

way from

market

This

$248.98.

was;

share

per

with $242.15

pares
1

petroleum

Institutional

of

posal

flight
June

the

have accounted for

sales of the shares.

new

Net

in

of total assets

thing like $1 of each $3 at the dis¬

is

This equilibrium is
into

Add in the 12.4%

cents

half

were

expired July the 124.3

and

on

rities in its portfolio.

to

rose

.V.

53 cents

or

Class

10

the fund's investment the first quarter of 1963.
of the proceeds of sales of secu¬
Department store sales

Earnings of Anchor Corp.

POTTER

began July

on

30, 1962.

15

Street, New Yerk 5, N, Y.

I

the

16

The Commercial and Financial Chronicle

(448)

.

.

.

Thursday, August 1, 1963

prices is Continental Baking which

And You

The Market,..
'A

WALLACE

BY

widen the 10-point range

STREETE

this

of

into

Street

sinking

deeper

spirited

for

bid

for

than

comforting

some

were

be

to

statements

earnings

pe¬

least being the
half-year profit reported
the

not

rused,
record

Steel
Steel

companies

reporting
this

fat

a

ing

busily

1 were

ond

have

first-quarter

was

when

one

case

strike

a

clear

in

up

along

came

in

Back

first

the

billion

than

better

tion's

G.M.

1955

in the steel

*

Earned

reported

dollar

corporation

profit,

the

in

a

nar

history to roll up earnings

issues

in

did

sales

steadily in recent
Whether this

was

operationsthis

/,/,, ;/

on

an

•

up¬

Potomac
the

Nation's

million.

cludes

improvement in

any

and

in

$102

served

the

724,000
in

adjacent

revenues of

Population

21%

serving

in¬

District

in

of

Maryland

Virginia.

District

of

revenues

flour. And

(including the District). There is
little industry in the area and the

for

flour, lower prices

to / be

of

are

from

sales

electricity to Federal agencies

reports

company

32%

that

revenues

residential,

46%

"low

Continental, the nation's largest
voltage" commercial, 17% "high
baker, has been diversifying
voltage''
but still
commercial,/ and
5%
sticking to food items.
miscellaneous. Obviously the com¬
Nevertheless, bread accounts for
.

-

derived

the increases in the price of
sugar
can be offset
by lower prices for

next
year/ seem
definitely indicated.

invest¬

them.

capital

765,000

Columbia,
and

Power,

has annual

areas,

are

was

Electric

/v:V

again

little

marketwise to indicate that there

ment attitudes toward

Electric Power

p'i v/.' Columbia sales account for about
The offsetting item in the .busi¬ 55% of revenues, Maryland 43 %
and Virginia 2%. About
ness of Continental
20% of
Baking is that

situation, the specific

understandably

a

Potomac

while

to continue

bread

.

makers ran

that size. The auto

of

into

lull after that and by. 1959

a

colossus, American Tele¬

the other

to the bil¬

phone, ran its profits
level

lion

the first time.

for

Stirring Oils
/; Oils showed stirring
and

But

there

vestors
A.T.&.T.
dollar

kept reporting billion

profits for the next three
G.M.'s

trailed
Some

the

in

CAB

route, leaving that lucrative trade
Eastern

to
the

National. Both

and

of

surviving Florida lines hailed

the lessened

making
rush.

competition, National

the

the

And

highs

new

stimulated

list

in

strength

buying

the

in

constitute

here

airlines.

to

American

Viscose

was

which

had

frozen

its

foods

Morton

mnce-troublesome

name

has

—

starting to contribute importantly
to

overall

results

after

having

turned

in

has

range

heavy

so

held

only

this

fraction

a

points,

in

year

which

a

six

only
mundane market behavior.:/
Dover
well

equipment

portant

of

is

and

oil

im¬

an

producer,
has
slow-moving market item

a

a

the

pn

makes

for far

better

investor regard.

[The views expressed in this
article
do

not

cide

necessarily

with

They

those

at

of

the

presented

are

time coin¬

any

"Chronicle."
those

as

of the

author onlyJ

time,

but

the

in

was

narrow

to appear

range

highs lists.

new

showing

momentary,
strength

if

-

not

premature,

technical

was

objections

to the anti-tru^t court moves. Both

Viscose and FMC performed well
for

bit

a

although

the

opposition is by no
result of the

a

Another

varying
tories

preliminary ruling.
situation drew
Abbott Labora¬

responses.

the

announced

G.

means over as

merger

was

anti-trust

skyrocket when it

plans

to

merge

sagged

badly

but

able, t<?

was

steady subsequently.
Electronics
had

July,

which

times

able

were

' V'

issues,

trying

some

to

''
had

through

but their

of

being

against

excessive,

Associates

independent

through

the

This

issue
more

reached

had

been

popularity

Joins Underwood

year's

bid

..

four

demand

around.

ture

on

carved
100

the

the
out

new
a

there

in

was

high,
that

which
few

International
also

is

achieve¬

an

Business

jto

can

wide

is making




match.

Machines

when demand showed
up

like Xerox,

this, year,

the

to

hint

that

the:

could for the full

pany

record

showing

share posed

Selling

in

and

top

$3.04
-

.

than

aiming

com¬

year

of

1956.

less

at

earnings

;

a
,

v

10-times

at

good

a

earnings achievement, the stock is
candidate for dividend improve¬

HOUSTON, Texas
Monasterio, Jr. has

no

moves

but,

un¬

serious

Juan

—

at

of

M.

joined

O.

the

registered representatives

Underwood, Neuhaus

pany^ Inc.,
Joseph
R.

&

Com¬

%

ment

with

the

question

open

being whether the cash payment

still be supplemented by
small stock payments as has been
in

case

than

showing
of

dent,

has

In

likely that

'

f

-

~

an¬

post ;with

the
in¬

me

banking

recent

market

shares

Until

years.

action

had

Juan

in

less

year.

terio

was

Manager of
firm.

his

association

with

Puerto
a

District

leading U. S. insur¬

He

finance from

Rico

holds

the

degree in

a

to

be

autos, Chrysler continued

Univ.

of

Texas.

the

center

sion, both

of

and

pro

the expectation

much

con.

discus¬

In general,

is for earnings of

that

even

at

their

shares weren't selling at
10-times

as

the

for

25-cent

yield/
token

terly payment on the
prior to a split was
doubled when
the

rate

parently,

much

earnings. The stock is

prominent

though

high the
as

for

it

the

was
new

though,

old

even

greeted

with

retained
stock.

some

as

Ap¬

of

the

chagrin.

Divergent Factors in Baking Issue
A

:well-known

occupies
Club

dles
and

offices

banking

in

the

corporate securities,

Stock
Stock

of

name'*with

a

yield of-better than 4% at recent

from

creased

both

the

Exchange and the American

// ■'■"/.

Exchange.

vs.

ratio has

41%,

and

12%

to

in¬

18%.

The

saving

in cost

of

of

fuel

8%.

1953

generating

743,000

at

this

kw

capability

and

it

is

now

increase of 120%.

an

Durand

will

become

a

partner in Shields & Company, 44
Wall

Street,

members

of

New

the

New

York
York

Exchange, effective Aug. 8.
\
'
.

City,
Stock

Roy Dunn, President of the

Analysts,

was

pects.
levels

future

in

1962,

with completed
including 283 apart¬
houses, 20 private office

ment

buildings,

12

major

local Government

large motels and 11
research

and

lishments.

are

tion and

a

a

large

program .for

progressing rapidly. The company
to benefit

continue

and because of the

area

amount

should

of

industrial

be

relatively

recessions.

v

<

."'.V

,

generating plant
Maryland.
pany

In

this

from

Potomac

(partly as the result of
flow-through
accounting!
from
in

12

1953

to

months

earnings

$1.04 in 1962.

ended

and

year,

With

to

this

split

much.

2-for-l

in

The; stock
April

it

is

also

nego¬

Electric

a-' tie-line

with

&

During the past decade there have

bepn four rights offerings,
stock

dividend.

dividend

rate

dividends

is

heavy

over

1965.

some

will

the

net

un¬

two

Of the total $169

$59 million will be

take

care

of

$15

on

mil¬

The

in

company

is

arrang¬

$25 million bank loan and

will do

some

1964.

June

con¬

The

80

a

present

cents

paid

and
con¬

In the past

decade the dividend rate has been

At

the

recent

(range this
24-20)

year

price

21

around

has approximated

the stock yields 3.8%

and

sells at about 20 times earnings.

Hatch To Be V.-P.

Of Carreau, Smith

Dimond, Inc., 115 Broadway, New
City, members of the New

York

York Stock Exchange.

$72 million in 1964 and $46;

nanced.
a

a

offering and

Aug. 15, Raymond A.
//•' //: :'•■/'U/ // ... Hatch will become a
Vice-Presilarge /construction denfof
Carreau, Smith, McDowell,

-/

$51 million in the last half of this

ing

was

year.

that' Effective

three years,/being estimated at

hand

this

completed

expenditures will be

program

30,
and

calendar year 1963 should show at

power

(Allegheny

be

Virginia

the

usually

com¬

June

$1.06

were

interconnections

Edison

System)

company.

or

Morgantown,

addition, 'the

will have substantial

available

with

at

sixth

a

in¬

creased

increased five times.

of

to

'Y"..' iV.

have

snare

per

mated

construction

it

immune

/ '•' '/

::

Earnings

negligible

business

years.

include

from

above-average growth in the

tinuously for 60

ex¬

redevelop¬

ment of downtown
Washington is

bility to 2,353,000 kw. The syste^
peak load for this year is esti¬

1,410,000 indicating

Federal

under construc¬

now

been

at

scientific

new

have

capacity of 16%. Future plans

and

development estab¬

Twelve

projects

Federal

installations, 10

355,000

capa¬

the

record

Construction

bringing

total

pros¬

in

•

reached

area

later,

about

growth

activity

another

kw

before

Society of Security
optimistic about the

Building

Washington

talk

recent

a

the New York

and

lion, leaving $95 million to be fi¬
J.

R.

company, in

355,000 kw

now

as

credit.

for the year1 1962 may
have benefited from the use
of the new
"guidelines."

add

from

well

as

tax

also

vertible debenture

year

re¬

Earnings

2%

a

years

increase

investment

The new Chalk Point system will

generated internally—and cash

John

3%

least

/'-,«,/.-

The

celerated depreciation
the

1963,

resulting in

earlier

for/by the
through for tax sav¬
ings resulting from the use of ac¬

its

Dickerson station,

in

flow

of

use

cents

began

and

lion allowed the
company in 1959.
A portion of the
present rate of
return -is accounted

available

earnings

1

6%

rate increase of
$4.8 mil¬

a

the

million in

/

flected

58

million,

In Shields Co/

decade.

In

year,

To Be Partner

the

ing coal in trainload shipments at

for

a

lower rates

receiv¬

Power

York

cents

to

stock

recently

Houston

and is

30

53%

from

with

New

is

revenues

common

tiating

Building. The company han¬
U. S. government,
municipal

member

btu

firm,

shares

company to increase the payment
was

Neuhaus, Texas'

quar¬

effectively

failure

Underwood,

oldest' investment

9,700 compared

The operating

declined

Power
In the

nearly

12,000 in 1952, and fuel cost

the percent of

cess

Underwood, Neuhaus, Mr. Monas¬

ance

Chrysler Pro and Con

Monasterio, Jr.

se¬

curities and municipal bonds.

showed

held

eight-point range for the

an

of

to

although capi¬

increased

about

now

cents.

the

Prior

has

million

year

corporate

revenues

derived from Mary-'

1,640,000 kw,

purchase

of

the

was

will

sale

of

Dis¬

seems

stock

equity 38%.

compared

with

kwh is

for

stock

In the past three
year, Potomac
Electric has been
earning 6.4% on
year-end net property

should

In

t

n

common

ating
efficiency
has
increased
materially: the number of btu per

specialize in
and

half

approximated 8%

station

con-,

he

cern

be

soon

only 5%; it

over

talization

new

Houston
vest

past

land. The overall growth rate has

/.'//;r

his

growth

the

decade, while growth in the

a

nounced,

during

trict had been

Presi¬

-

Mary¬

annual

an

13%

company

Neuhaus,
Vice

in

revenues

rate

35

staff

with

land

per

a

not

of better than

issues

given

last

and good gains have been scored

par¬

regular fix¬

a

points from this year's low to

ment

was

were

highs list. It has

range

year

means

issues

Xerox,

ticular, has become

$2.40

to

been

around $7 a share this year which

.

equipment

sharply when

up

back

and

than

•

.

earnings

low

doubled

>w-;

•

Office

with

has

company

Company

preferred

company's

growth,

will

56%,

more

electric

The company has enjoyed
rapid

with

Neuhaus Firm

doldrums.

Office Equipment Bid Up
_

progress

the

times higher than last year's low.

-

steady

up,

Electronic

leyel_jnore

a

Ja

making

particularly

this

than

from/ $2.66

the

better

summer

from

when

share in 1959 to $1.51. Since then,

the

which

showing

has

1960

however,

the

of

record

in

skidded

far short

moves were

the

made

participate, \yill

when the general strength showed
up

earnings

with

D. Searle. The latter promptly

it

be

the

annum. //;,//
/;
,/
During the past decade gener¬

planned to sell out to FMC Corp.

Holding back any great interest
But the plan ran into antitrust;
in'DoVer was the disappointing
objections^; What sparked at least-

of

11 %•: per

degree by breaking

a

should

that

acter.

elevator

some

cut

to

up

Corp.,- which

come

of

than

more

adds

ex¬

than

little business of cyclical char¬

the

been

business

stable

so

division—under

trade

analyses,

limelight to
situation

However,

industry in general, since there is

pected. Royal Dutch, despite many

scrutiny,

buying could hardlv be

Situation

soecial

pany's

favorable comments and

for

Another

commitment

nearly two-thirds of sales, accord¬
ing to the available estimates.

from red to black ink in
1959. If the
seeming improvement
is basic, Continental
could

open

fund

been

Merger

to

already

in most institutional accounts that

a

other

They

sizable

a

in¬

by

professionals

them.

on

highs.

new

rush

no

the

or

up

are

Florida

Northeast Air's

cancelled

...

airlines

the

when

generated

was

billion.

$1.4

stirring

billion

$1.3

last year's

but

years

load

was

occasion

on

few showed at

a

OWEN
ELY

matched

run.

that

although
seem

grade;;

,

Billion-Dollar

earnings,

when

significant turn isn't yet entirely

a

Motors which
mid-year. Meanwhile current steel
last year recaptured the laurel of
production- continues
to/ drift
being the nation's biggest money
downward.
/<*//* //
maker.
.-*■ A'With the uncertainties inherent
General

giant

by

BY

slightly

earnings had been declining

con¬

busy stocking

were

fact

until last year.

re¬

year
sumers

the

increased

years,

not good, and the sec¬

were

quarter

is

their

in

rebound

year/ But

ports

13-times
ratio

estimate,

only

Holding back Continental Bak¬

Uncertainties

fortunes in the second quarter of

week.

to life this

came

the

been

against the general

moment.

in

advances

earnings

has

conservative

all-time peak at the

any

any

tradition,

rally

summer

There

off

writing

was

chance

list

market

slough of neglect, and the

a

the

of

signs

showed

stock

the

year's

price

more

when

in which

it Lad held this year. On the basis

its

Just

PUBLIC UTILITY

lately has been nudging higher to

30,

The

permanent financing

capital set-up

1963,

was

funded

as

of

debt

Reynolds & Co.
To Admit ■■.•///;■■■
Effective
Beach

nership

Aug.

will

in

be

8,

Edward

admitted

Reynolds

&

Co.,

Broadway, New York City,
bers

of

change.

the New

%

York

R.

t9 part¬
120

mem¬

Stock Ex¬

The Commercial and Financial Chronicle

Number 6286

198

Volume

(449)

Joseph

■

NEWS ABOUT

Beckman,-has joined

public

relations

t.nental

division

Illinois

of

the

BANK AND INSURANCE

Con-

National

Bank

.'i

...

Trust

and

BANKS AND BANKERS

as

Branches

New

•

Officers,-etc.

New

•

Revised Capitalizations

"•

to the

James

advisory

board

of

the

wood,

f

service

is

of

to

group

a

Bank.

He

has

spent

fcareer

in

the

trust

is

he

of the

in

■i

title

:A

A\

in

to Vice-President

in

*

Cooley, formerly
Assistant

and

dent

Bou¬

•
.

Division

just

levard,
east

of

Brea.

o

Julian D. Weiss

the

i Sharing

Profit

La

in

and

Pension

Section

of

the

Trust Investment Division Charles
B.

Barlow

to

Senior

Assistant

Vice-

Investment Officer.

the

York

Bank

the

in

Lake

Leete

have

President

tive

Officer.
the

Peterman

F.

T-*

dahl,
Levi,

Albert

L.

•u'-'AV

'•

•

C.

V.

■■

U

^-J

The

;

Federal

'■

Board

Reserve

V

ap¬

the First National Bank of Farm-

L.

I.,

-

~

the

by

*

*

Bankers

Yorkj

nounced

the

Wall

AA

is

'

of

Charles

V.

President

Trust

Vice-

Officer.

He

at the

Broadway office.
A

■

Named

%

*

the

to

also

cently-organized

the

of

Northwest

Bank,

Albert

Egermayer,

Hanold,

Officer

With

an

New

re¬

In¬

York

Assistant

of

to

and

capital and paid

North¬

$2,500,000,

is

Bank

its

open

headquarters

in

New

the

near

York

elected

York

Abe

Denholtz

Board

of

National

*

John

of

to

the

Security

Bank, Huntington, N. Y.

according

to

an

the

of

Second

Na¬

Hagerstown,

Md.

National

Md.,

has

Bank

been

Currency, to become

the

of

man

of

initial capital¬

$625,000.
*

:!<

si:

Saxon

22° that, he

approval
Bank in

has

to

announced

July

given preliminary

organize

Initial capitalization of the
Bank

■$300,000, and
under

the

will

title

be

new

to

J.-

Saxon

the

proved

application

Marlboro

18

ap¬

merge

Company,

Bennettsville, S. C., into The First
National

Bank

Columbia,
the

under

the

latter,

of

'

South

and

effective

on

s.1

be very,

effective

at

advisory

fices. Claude M.

$1.70

S.

C.,

title

of

come

a

Board

of

•

National, will be¬

Vice-President

National.

Other

of

the

Bank

With the
Bank

of

in

as

a

members

-I-

nounced
the

Saxon

J.

July

25

an¬

preliminary approval of

Bank

With

in

Na¬

a

Dallas, Texas.

the

title,

Bank

of

initial

capitalization of $1,000,000.

Northpark

Na¬

with

a

offices,

Second

with

and

National

all

personnel

will

continue

will

six

land National
shares

of

shares

stock

Second

for

James

J.

of

Mary¬

each five

National.

Saxon

July

on

25

in

Bank

statements

two

banks

announcement

of

indicate

Richardson.

the

of

that total

re¬

tion

is

Initial

the

of

excess

capital funds

merged

of

over

$50,000,000.

si:

Earl

*

Theodore

r-

hew

*

*

J.

proved

Saxon

the

the

Currency,

on

July

application

to

17

The

Columbus,

Northern

The

Union

California

Bank,
made

Los

Harry

Alfred T.

made by Herman

H. Maass, Presi¬

dent.




Columbus,

Ohio,

after

17.

July

effective

on

or

M.

1.7

30,206,880,000

8.9

11.7
4.3

2.3

32,964,516,000

6.6

4.4

1962 (6 months)

18,361,800,000

15.1

11.1

1961

15,956,496,000

(6 months)
York

City.
National Bank

Texas Nat'l

of Commerce

f

-

Earnings (estimated).

—-

$80.00

Share

cent of Deposits

per

1.50

,

1.88%

$3.85

$3.85

25.8x

-—

as

Bank

$97.00

—

20.7x

,

6.80%

'10.00%

Earnings—

».

$2.83

^

-

$3A5

A

2.91

3.59

1960

3.21

3.72

3.50
————

—

—

T
*i '
tf
f »5
4jInC«~V# m—'mi

.

"A

f

A i«

V.

3.61

3.75 a

S

■

v

•

J

r

,

'

3.79

v

'

V*

■

[

'*■■"

■

.

A

*

'V-

$

Christiana

Head Office

Securities Co.

•

Bulletin

to

KENYA

•

UGANDA

Posthuma, Vice-

Members New

INDIA

•

PAKISTAN

ADEN
..

•

Request

Laird, Bissell & A\eeds

ZANZIBAR

Branches in

-

on

the Government in

•

•-

-

CFYION • BURMA

SOMALIA

•

EAST AFRICA

AND THE RHODESIAS

Members

*•'

120
„

Yrrk Stock

American

Stock

BROADWAY, NEW

Telephone:
Bell

FA-clav

Teletype 212

ExV-ar^j
Exchange

YORK

5, N. Y.

7-3'0>

571-1170

Specialists in Bank Slocks

Presidents.

;

Telex Nos. 22368-9

Fein,

Hartwell, Jr., Robert H.

and Y.

1.1

1959

•

Mead

6.1%

27,750,385,000

Angeles,

L.

337 Cities*

4.4%

30,319,925,000

Bankers

and

Bank,

$28,058,919,000

MINERVA LONDON

ADEN

of

Increasc-

Houston

Telegraphic Address

Houston

*

ap¬

merge

Ohio

Savings

Bank,

*

Houston, Texas

U BISHOPSGATE, LONDON, E.C2

been

Texas.
»

The Huntington National Bank

Columbus,

Continental

bank deposits.

Bank Limited

named Assistant Vice-President of

-V

development should reflect itself

new

National and Grindlays

"

The Comptroller of the

area.

Trend of Bank Debits

1962

an¬

'A'
has

for many years,

area

1961——

1958

capitaliza¬

McGee

The

continuation of growth in

Per

$550,000.

bank will

$650,000,000 with

cities.

Price/Earnings Ratio

''

in

most

1963

The title is First National Bank

of

condition

Houston is

The city is also

1.50

Texas.

June

Although oil dominated the

1 55%

an

Richardson,

the

have the largest com¬

now

Dividend

preliminary approval of

the application to organize a
National

proposed bank is the location.

Yield

*

1:

for

a

largest city in Texas but does not

♦Excluding New

Comptroller of the Currency

nounced

Maryland National.

receive

The

1962

.

1959.

advisory board of Second Na¬

tional

period in

same

banks

Capital Accounts

tional

Dallas,

the

-

This

in

initial

an

application to organize

tional

$1.58 for

growth, due in part to

s):

on

to

thousands to the

Na¬

Comptroller of the Currency

James

*

the

two

Price
The

of

National will become members of

with

earnings of

compared

expectation is. for continued stability and 'u
the: NASA center which will bring many u

$1,000,000.

of

unusu-

under discussion are well regarded for their
Their banking emphasis varies with one regarded
retail institution and the other a wholesale one. Another
very

than

Dallas, Texas.

Dallas,

capitalization

multiples of

earnings is

a significant
seaport—ranking second to New York City in terms of tonnage
The record of the city during the
depression was better

an¬

a

ample

The payout of

handled.

title, Citizens National

Mary¬

of Directors of Second

25

application to organize

tional

the

that long-term 'dividend performance should

appears

attractive feature of the

after

or

July

on

disallow

from

favorable. To date, the earnings records of both bank have

as

The

*

Saxon

selling at

are

low.

are

National Bank of Commerce.

preliminary approval of

*

Potterfield, Presi¬

dent of Second

J.

will

operating earnings increases of approximately
20% and 8% annually over the past five
years. Although the Texas
National does not report interim
earnings, they are expected to be
higher for the year 1963. The first six months showed

Comptroller of the Currency

nounced

Board

could -come

been good, with net

July 19.
*

1196965087

ally low and

Carolina

Columbia,

Charter

Obviously, both stocks

manufacturing is also of importance.

to

Trust1

only possible interference

earnings and the yields

mercial banks.

July

on

lowed.
/

National

Comptroller of the Currency

James

The

the

Bank of Mountain Grove.

The

union.

operated

First

expected to approve the merger and it

are

anticipated that the Federal Reserve

managements.

amount'

will

it

institution

exchange their shares for the new stock on
The shareholders Of the Texas National
will trade

more

National

a

Mountain Grove, Mo.

Missouri

ap¬

Directors of Second National's of¬

James

elected

Directors

of

an

title,

Bank

Comptroller of the Currency

The

proved by the Comptroller of the

Mac-

*

was

Assistant

sH

Maryland

Baltimore,

be

George Executive Vice-Presiden1j.
*

H.

Michael

and

now

ajs

of

Bank

with

future.

&

%

ization

the

National.

out¬

17.8%'

a

proposed bank will not be the largest in Houston and will not
have
than 30% of deposits in the
city, the merger should be al¬

ap¬

organize

with

number of shares of this

$816 million.

ex¬

The Nassau Trust Co., Glen Cove,
New

Secretaries

Jr.,

are

merger

tional

sources
«

the

to

groups

Texarkana,

James
The

30

pected

of

Texarkana, with

of

Assistant

Pintavalle

Planhing

Vice-Presi¬

Stockholders of Second National

International

west

is

Planning Officer.

Brown,

are

Terrance

McDonald,

initial

surplus

Title

Jr.,

Estate

*

William F. Mitchell.

in

title

officers.

Burns,

from
to

Tatnall

Currency,
of

Texas

City National will be the largest in the city with
deposits
The third largest will be the Bank of the
South¬
west with deposits
slightly !in excess of $500 million. Since the

July 22 announced

approval

the

as

2,400,000 shares

The First
of

the

known

Treasury Department. The resulting institution will be the second
biggest in Houston with 'deposits of
approximately $740 million.

"

<

•

National Bank in Arkansas.

new

The

E.

dent and Estate

of

Tom

Jr.,

■

the Board

ternational

G.

Jane

Church,

announced

three

for

Thomas

land

*

Board

Officers

W.

the close of business Aug. 2.

elected

will continue to be located
115

the

North

of

has

Scheuermann,

and

As¬

and

Mr. Thomas will become Chair¬

Bank

York

New

plications

The

this

*

of

preliminary

and

Assistant

Langer, and W. Kyrel
I

Brown

*

*

Commercial

America,

with

division.

Street
*

The

as
an¬

international division.

Stubenrouch,

Bank's
■

oeen

by the Irving Trust Com¬

Bank's

Mr.

has

New York. Mr. Lee, is with

pany,

Comptroller

At

:

*

*

not

Treasurers.

Stubenrauch

E.

oames

C.

is

'

as

sj:

G.

The appointment of Robert E. Lee
and

Savage,

Officer;

John

Meschter.

D.

*

Vice-Presidents

A.1.,-

James »J.
are:

Helen

Simister,

Investment

Bester,

Former

ingdale,

Trust Company, New

J,

Trust

changed

proved the proposed acquisition of

Kramer,

C.

Albert

Rapp,
..

P.

Norman

changes

•

.

Roy

sistant

MacDonald,
Anthony

„

appointments

Camp, Robert A. Grav-

Assistant

following ap¬
F.

officer

Treasurers; Arthur H. Hunton, Jr.,

time, Mr. Woolley
the

A

George

^

Divi¬

Coqueron, Alfred

promoted to Investment

Robert B.

Secretary;
Gately, III, Harvey P.

."*■ ..V'

were

New

Assistant Trust Officers.
*

and

:

be

The National Bank shareholders will receive

dividend—bringing the

The stockholders

Lenington

will

900,000 shares for the new issue on the same ratio/ The Na¬
tional Bank of Commerce
shareholders will own 62.5% of the new
National shareholders will own
37.5% of the
institution.
■
"
>
•
•
•" - v

National

C •'

institution

Commerce and will have

-bank and the Texas

*

Dale

James J. Saxon

National

Investment

E.

Officers.

Bank«of

a -

and

Division;

F.

Hoffman, and J. Warren Max-

son

Lees, a

Assistant

Matthew E.

and

of

their

has elected Lyle K. Robin¬

•

Trust

Charles

Chief Execu¬

Treasurer;

Jr.,

;

the

sion

Samuel H. Wool-

John

pointments:

Mich,

a

M.

Division.

announced over

•

-

announced

Barber,

McKinney,

Vice-

elected

and

same

Assistant

Loan'

John

W.

of 'The

the weekend by

ley,

At

Consumer
John

A'''

and

been

New York, it was

Freed,

Office; Harold V. MacNew,

the

In
sjt

Si:

Officer,

S.

'V

banking

l-fof-l bhsis.

a

Vice-Presi¬

'VA.'.V

Commercial

Presidents and William M.
Trust

Charles

are

,» • W..

p

to 1;5 million and then

1.

Vice-

was

Shore

*

Vice-Presidents.

/ A'

the

joined

division,

Danton

A.

of

1962.
Sl:

Robin

heads

section

services

relations

public

Street

who

Jansen,

editorial

to

Jr., Manager of the Bank's 22nd

announced.

was

Mr.

Presidents

New

Manhattan Bank,

Chase

Promoted

of

officer

relations

public

a

as

-

A.-

Bo H. Jansen

The appointment of

stock

The Michigan Bank, N. A. Detroit,

son

advanced

is

'

and

of

Vice-

Bank.

the National

new

standing.

became

Chicago, Illinois Aug.

*

Sunset

The

National Bank

i'-.:,

-j

a "A an --A h A

directors of the National Bank of
Commerce arid the Texas
National Bank have
approved the merger of the two institutions
subject to approval of the stockholders and
regulatory agencies'
approval.
;
aA' ,t\A 'A* A a.
; A:'.'' a"-";
<}:■.
: '■

in charge
A

Bank Stocks

The

his

of

—

PROPOSED TEXAS BANK

department^

*

Cooley

of

Bank

that Lewis G. Cordner is promoted

at i:' 7014

most

Week

-

the

President of the United of America

Exchange

Bank, Philadelphia, Pa. announced

early Septem¬

with

President of Merchandise National
Bank

o

-

celebrated

presently

*

L.

v

Initjal capitaliza¬

Corn

is

A."-

■

John

Norwalk

$500,000.

Girard Trust

This

employee trust division.

A Mr.

The

A*

A

;

A A~! ,' AvA

Anniversary

Bank.

where

or¬

Bank

A-'

*

111. A recently

35th

an¬

bank,

open

ber

proposed

tion is

scheduled

to

25

National

new

National

11-

u

a

The

independ-

ent,

July

Norwalk, Conn., 4• <

Calif.

Guardian,
an

Saxon

preliminary approval

application of

ganize

Holly¬

Bank,

J.

nounced

the

Guardian

new

his

The Comptroller of the Currency,

D| Weiss, has been elected

'-A

:s

Henry L. Parker, Vice-President,
Harris Trust and Savings Bank,

Chicago,
Julian

..A

*

;v-

Consolidations

A J,

Company, Chicago, 111.

relations manager.

press

17

n

18

The Commercial and Financial Chronicle

(450)

is

course

SECURITY SALESMAN'S

also

Exempt

If you are

BUTTON

JOHN

BY

in

San

ing

Securities

and

GOVERNMENTS

under-,

"

standing of tax exempt securities
the

To

Help You Further Your Career

following

phlets
tals

If

trainee or someone
limited knowledge of the

you

with

are

a

a

securities business; or if you

specialized in

knowledge, valu¬

the

Bankers

Investment

ciation of America, 425

write for their bibliog¬

raphy

published

titled,

"Selected

Investment
S

b

u

j

mended

and

en¬

On

There

books

Banking,

1S63,

Textbooks

June,

Banking and Related

t 's."

e c

ning,

Investment

Fluctuations

Business

Financial

Estate

of

Manage¬

Analysis of Investments,
Companies,

the

Industry,
The

Institutional

Practices,

Investment
ment

and

Personal

Money

ties

Merchandising,

Regulation,
Finance.

and

reference

financial

but

is not

desire

may

for

mation

and
a

for

news¬

list of ad¬
who

those

specialized

those who

list

also leading

periodicals

textbooks

vanced

Business
added

an

books,

This

papers.

is

material,

require

infor¬

In

is

correspondence

well

as

Home-Study

Department

is

particularly

trainees

who

versity

well

having
is

sons

in

near

for

School for
tensive
in

Fundamentals

In¬

vestment Banking.
The

following

available
member

to

three

vestment
mented
course

is

by

Fundamentals

same

Chicago

for

firms
area.

week

which
of

In¬

This is supple¬

four week

a

the

primarily

member

IBA

fourteen

A

Banking.

on

only

of

Northwestern

at

the

covers

are

employees

firms:

program

that

summer

con¬

An additional week

Municipal

Bonds;

term

rates

ments

partners,

officers
of

The

is

firms

member

seasoned

obtained

provides

the

Department,

interested

investment

Emphasis
ment

should

if

pub¬

you

Complete information regarding
all

study

and

IBA

that

courses

obtained

be

can

avail¬

are

writing

j by

Department

requesting

of the

of

IBA
for

course

executives.
manage¬

on

cost

reduction,

assuring compli¬

"Available
booklet

valuable

information
available

regarding
members

to

members),

training

films,

relations

public

provides

should

information.

Education

be

consulted

The

and the James

and direct this

As¬

specialists
prepare

/ '

course.

of

advanced

the

IBA

Banking,

in

well

as

literature released

as

An

procuring this

ma¬

terial should also be requested

and

member

both

coursb

who

persons

senior

firms.

Los

It

Angeles

please

ask

"Order

for

Form

tion

Los

Committee

plaguing

before

it

gets

question

of

Duome

worse

The

whether

July

Albert

influence

dollar

the

on

the

Group

and

from

gold

our

here

case

and

the

of

the

Exchange.

A

foreign

on

gives

able

balance

been

V

point

of

rapidly

where

Inter¬

liative

had

approaching

the

and

measures

if

used

be

this

remedied
It

evident

horns

to

had

was

bull

bringing

of

of

securities

business.

Law,

Inc.,

New

City, and Mr. William Lang

Carroll of Fahnestock &
Co.,

The

cago.

pictures

correctly

Chi¬

captioned

given above.

are

it

dees

tion

not

of

result

the

in

basic

predicament

of

causes

which

we

C

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.

Richard

St.

Croix

of

the

Exchange,

has

appointment
as

manager

(Virgin

_J.

;

the

was

of

Islands)

formerly Vice-

of America and manager of

-Securities

also

authorities

Department.

associated

was

must
cur

gold

He

with the New

firm

Stock
of

:

Exchange

Hecker

delphia;^

.!

& [Co.

;

member

'in-* Phila¬

7

of

it

by

limits

sector

cur

obligation is

and

down.

it /

this

This

of

a

will

should

of

in*.

the

the

the

of secondary

national-

billion

money

angle,

aspect

very

importance at

this time.

ers-that be in

so

far

*v

as
■

v

overall

our

vV-"

'

-

'

•

to

from

help

pre¬

going

our

bal¬

Treasury

announced

the

about $7 billion,

be

and

in

$11

billion to ,$13

indicated,

$2

raised in early Sep¬
the

the

remainder

last

quarter

of

of

$5
the

year.
;

«

Rising

income

tax

payments,

larger, sales of savings bonds and
lower

Expected

than

Government

spending have allowed the Treas¬
ury

.drawback to the pow-

to

tember

the

15-

short-term

borrowings the balance of

the year will be

very

3%%

The

tend

rates

bonds

a

payments problem.

Also,
that its

monetary

that

.monetary

much

"■

1964.

15,

billion

with

«•

Nov.

given to the dollar and

holdings,

these

certificates

Aug. 15 with

on

previously

protection

forces

of

both

3V2%

of

billion

a

availability of

in

near-term

ance

of action. Be¬

scope

very

which is effected

change

due

issue

our

which

all

important

very

which

international

.

after

The level of in¬

of

shcrt-term

.

is

much

a

domestic

$1,461,000,000 of 2%%

note

monetary

our

especially

is

the

both due

our¬

market, is being framed from the

■\ This

our

us.

economy

and

payments

in

way

since

the

be

which

in

our

monetary
to

to

instead

of

cause

;

York

the

severely their

policy,

Mr. Richard

is

handicapping

of

President and Financial Secretary
of The Home Life Insurance Com¬

:

:

the

Richard

of

members

Stock

problem

Co., Interna¬

affiliate
Co.,

York

&

branch.

pany
«

&

announced

Everett
Fill out the coupon below and

Buck

our

be geared

can

extent

month

about

balance

settlement

a

disturbing part of the

brought

will

measures

that

order

are

vent

Names Branch Mgr.
J.

in

180,000,000

in at this time.

The most

each',

The Treasury refunded the $5,-

a

Monetary Policy Handicapped

Buck International

and

specialists

Treasury Borrowing to Be Lower

the

find

growing

a

money

two forces.

elimina¬

the

other.

vacuum.

best'.thing';for the

credit

by

Central

only

a

more

terest rates and the

a

short-term

since this is

long-term

balance of payments prob¬

our

important to

postponing type of action because

selves

This

higher

nepr-

each

that there is

so

program

vexing prob¬

higher

a

or

rates

money

York

as

rate

the

rates

the

to

newly adopted

lem

lem.

Bank

that

work

really

about

in

to be

appears

market

the

to
go¬

the

by

something

in

of

favorable

Interest

related

capital

greater

the

on

spite

support of

most

are

among

from the time when

solution to this very

measures

.There

policies

were

they

opinion

day

becoming

we

time

money and capital markets is that

ortho¬

an

the

return.

are

not

do

constructive

in

that

take

and

talk

was

in

in

bank

They do not exist in

just pal¬

problem

manner'.:

had

than

them

of

sector

the

are

payments

more

will

term segment or in the

spend¬

unfavor¬

our

up

influence

•

even

Reserve

whether

security

Fund

though

as

this

adverse

an

rate

being used.

now

rates

continue to go

will in time seek out the area that

of the

Monetary

that

so

the most distant maturities. Funds

prudent
use

time

is

job. Neither will such temporary

program

as

Central

if ' short-term

have to

Federal

than1 has-been

more

seems

we

Frank-Guenther

effect

out

realistic

holdings

the

Coast

in

the

to

long-term rates

^

ing and just talk will not do the

Pacific

been

to

now

because of international monetary

far. Higher short-term

so

too far away

William Lang Carroll

time

a

working

from- time

should

domestic

more

in

on

taxes

more

Joseph J. Duome

For

because

However,

ad¬

Educa¬

co-sponsors

ir¬

happens

down too much.

go

even¬

an

defense

going to be much

dox

San

been

7y' yVV' developments,

Evidently

ing to

available

policy

a

prices of the obligations will not

higher level of rates all

a

Defending the Dollar

be

are

has

what

has

program

ket

big
not

or

.

Repre¬

and

rates.

have

It

In the Financial Chronicle of

J.

of

and

long

a

&et

higher short-term rates and

forces

|gi! Correction

respective
short-term
this

stop

a

for

us

better.

is

now

national

is

entering

the

only

and may still

flotations,

of

together with the New York Stock
Stock

satisfactory

is

following

are

up

re¬

of these monies,

ing abroad and

Joseph

here

rate of

still

Banks have been
supporting the
long-term Government bond mar¬

rates,

Angeles Institute of Finance,

Exchange

remain
or

be

however,

now

•—

I

Available IBA Tools."

Mr.

funds

Passing the buck, procrastinat¬

California

au¬

been

Francisco.
The

monetary

has

time

the

employees
is

the

planned

—

connec¬

Registered

as

sentatives

The

addition,

thorities have been and apparent¬

free

solution of the problem which

publica¬

Administration, Univer¬
45

viewpoint)

gap

material,

in

courses

with the Graduate School

qualified

to

now

owners

This,

situation.

non-

25, the names were inadvertently
the reversed under the photographs of

of

group

Committee

In

literature,

one

O. Rice

are

education,

California

to

should

(and

It is planned to offer

again this fall; it lasts for

of

.is

course

members from all parts of

Business

transferable

continue

verse

order form for

tion

other

the

as

Rise in Long Rates Inevitable

that

competitive

in

rates

readily

courses

and research department
tions

IBA

Group

York

offers

to levels

up

them

along the line might have

the

of

bulletin,

the

Investment

of

copy

a

by the legislative committee.

The

similar

to the
v--

The Chairman of

it

gone

make

This

the

with government and indus¬

open to

went
rates

tually

placed

the country.

are

,*

try regulations.

for

rate

short-term

their

of

group

banking

Committee

also

with

discount

and

Tools," published in March, 1963.

is

New

economy is concerned.

the

3V2%

York

operations,

ance

problem
to

(national

rates

far

as

domestic

:]' V.

methods

and

IBA

'

the Education

qualified experts in various

advanced

will be good or bad

our

whether

to

as

short-term

international balance of payments

Municipal

the foregoing mate¬

in

'

rial.

from

phases of the investment banking
New

to

higher

pal

with

.

help

more

irrespective

not

or

ease

balance of pay-'

our

turn

to

able

The

give

In

on

near-

to

because the income

opportunity for study and contact

business.

the

by

strain

order

should

and

and

not

the

in

now

Committee and the State Legisla¬

IBA member firms.

faculty

and

domestic situation.

or

to

Municipal

literature

for

conditions

have

Request

concerned

there must be higher

tion Committee, from the Munici¬

offered

is

form

Invest

is

program

since

level of money rates is now
being
dictated
by international mone¬

in¬

an

order

Act;

People

monetary

the

completed

Practices and Investment Analysis
is offered for individuals

the

Securities

to

because

ly

basic training in Securities Market

outside

In

State

Professional

continues

spotlight

which tends to prevent
long-term
interest rates from going

subject which

living

the;

the

employees

of

Why

market

money

world money centers. In this way

Wharton

It is

is

It

years.

personnel

in

courses

week.

one

course

pro¬

of

The
hold

lished by the Municipal Securities

the

at

sity of California.

composed of thirty les¬

the

held

are

limited

in finance. The

been

ducted every year since then. The
classes

uni¬

a

complete

a

gram of education
course

course

suited

not

are

The

of

Modified

Newspaper Series.

have

on

State Securities Regulations;

Bond

which

Munici¬

A Primer

sylvania

also

University of Chicago. This

Education?;

Advertising Kit;

as

the

with

to

Marketing

Bond

is

connection

Municipal Bond

on

School of the University of Penn¬

Education

in

seminars

cooperation with the Wharton

employees of IBA member firms,
offered

IBA initiated

in management

that

course

to the public,

open

the Education Commit¬

sociates, Inc., who

"^IBA Training Programs
A

1951

of the

week

fundamentals.

on

and

order

Banking,

Small

There

Interest

Aid

Executive Development Programs

Committee

Securities

Principal

of

tary

an

Securi¬

Computation

CHIPPENDALE, JR.

State

national

Education

ment, Securities Markets,

for

Bonds;

pal Industrial Financing; Federal

also offers

Manage¬

Municipal

Funds; Recommendations

pal Bonds at Public Sale; Munici¬

Northwestern.

at

Banking

Investment

Money

Exchange course,

period of six weeks, is also

a

offered

Manage¬

Money Market, Municipal Fi¬

nance,

of

Fi¬

Analysis,

Government Finance,

ment and

Plan¬

Institutions,

Statement

Investment

Fi¬

Corporate

Economics,

nancial

recom¬

are

on

Forecasting,

nance,

on

A

of

Pension

T.

Fundamen¬

Transactions;

Thirteenth

to study

like

1961.

are ^available:

JOHN

pam¬

for

in

would

in

and

consisting of 16 two hour sessions

be very helpful to you.
you

added

was

New York Stock

tee

your own,

1

Asso¬

Stock Exchange op¬

covers

erations

St., N. W., Washington, D. C., can

If

li

to

Department

Education

The

you.

available

is

information

able

of

field and wish

one

to broaden your

have

which

books

Thursday, August 1, 1963

.

-

interested in increas¬

knowledge

your

.

Our Reporter on

Francisco.
Tax

CORNER

available

.

to borrow less. This probably

precludes
until

Fall.

a
;

rise in the debt limit
:

*

•

•'

-

•—

Volume

198

Number

6286

The

Commercial

and Financial Chronicle

(451)
while

New Business

Cycle Bodes

that

Well for Stock Market Rise
Continued

from

call

1

page

dropped

down

January.

What Industrial

to

40.2

number

a

talking that

in

again

though

Product

they

our

have

last

going to break out

is

year

this year

known.

well

From

and

through January of

1962

it held in less than

one

record. This certainly could

have

been

correction

a

peak.

duction

J

orders

industries,
indicator,

in

manufacturing

of every

sensitive and leading

a

has

less topped out

more or

February, 1962, declined for the
next couple of months, recovered
month

and then

greater

even

importance

the

Of

they

mostly running under

were

manu¬

*

declining.

While

vide

/

;

run-through

a

and

normally
their

all dhe

lagging

peak

in

hit

indicator,
third

quarter
Running

the

at the annual rate of $38.35 billion

then

rate of

off

eased

to

annual

an

$37.95 billion in the fourth

quartet and eased slightly further
to $36.95 billion in the first quarof

The

1963.

second

major leading
stock

market.

what

Need

of

is

one

indicator

happened

half

that

making

was

1

a

the

—

mention

during

the

first

1962, climaxing in May?

We've Had

my;

belief, aoconsiderable body of

.

lion,
the

on

preliminary

a

plant

1961

1962.

ended in

But
baen

was

the

middle

because

the

modest,

and

because

the termination

Arthur Burns and
stein have

of

recovery

of

what

Edward

Bern¬

aptly called the under-

and

of .the
are

j risen

to

a

lich with

and

the

in

indicators

correction

the

at

it alwavs is at

as

have

called

it

a

40.7

in

June,

consistent
about

Numbers

publicity

the

of

While

is

and

the

alarm

unemployment,

adverse

economy.

affect

the

on

unemploy¬

any

ment of si-e is detrimental to the

I

economy,

should

out that our

ing

be defined

the

a

the

to

point

p~iht

much

to

small sampling

composition

v^moloyed,

nomic

like

leaves

(it is

from

an

of

eco¬

heavily

one

weighted

^d

agers

with

orders in manufactur¬

December,

moved

slight

a

part-timers)

in

s

i g n.

by

real.

fact

much political

^s

Ear

fh^t

we

now

have

also

earning

ducing

worthwhile
end

of

small
.

So

money

^oods.

to

the

Might
look

stick

much

correct:on

occurs

to

see

going
-blown

the

is

all

peak

and

pro¬

the

well

be

not

large
as

the

the

whether

have

manufacturing

very

a

stereotype!

with

trepidation

the downtrend

into
depression" (and I
to ? continue




is

1965

or

pace,

sign of the

upturn.

an

About

New

Cycle

all

then

it

is

belief that

my

to

appears

cycle will
duration

than

it

cycle is underway. Further¬

new

that this

me

and

of

of

the

ments that

greater

have had since the

we

cycles,

recovery

during the

the
are

and

especially

eight

past

accumulation
have

been

factors.

We

liqui¬

major
have

in¬
now

major stimulants which

new

not

only

been

actually

past

and

the

in¬

years,

lacking, but

been

five to

adverse

six

for

These

years.

rising family formations and

expanding

plant

and

equipment

is

I

were

major stimulant to the economy

in the late

although

1940's and early

there

was

1950's

sharo

a

1958.

idea of the extent

To

of the

that

proximately 90.9,000

give

to

a

whereas
new

ap¬

families

1958,

can

re¬

down
"Ty

&

slightly
to'

an

ac¬

is

be

nations

the

economy.

'

td

-•'

-

second

resumption
plant

•

the

in -1959,

1962,

registered

was

plants

the

anticipated

last

year's

demand

of

years

which

nological
aid

now

and

makes
riod

it

of

ment

the

tember

a

plant

i373,000
**•

about

and The

profits

probably

tric

two

this

into

though

and

could

1964.

pluses

it

added

economy

to

issue will be

new

se¬

hydroelectric generating

operation

of the

total)

by

January,

1964.

The

and energy (account

power

will be Pacific Power

&

Light Co.,

Co., Puget Sound Power and Light Co., :

in

corporations

the

Pacific

Northwest.

Wanapum

is

low-cost producer of electricity.

a

I

which is

continued high

level of

purchases leads

sumer

this

upturn will

me

be

con¬

stronger

daily

witnessed

have

for

much

business.

funds',

the

How

siderable

the

ratio

P.

&

500

Stock

quit using the Dow
when

know how.
went

up

only

went

was

wanted

point)

1

stood

high

1961,

up

30.1% from the June 28,

.1962

low, and about 8.5%

Dec.

little

less

than

.3%

12,

December

of

important,

selling

with

compares

the

the

end

P/E

of

too
ratio

y the- yield

of

3.97%

lows of last year.
With

the

j

economic

'

the

back /vcrable,

in.; 196k. and ;does-not
-i-* •*:*
*
;
'•.«
•

of

I

feel

that

goods; machine tool companies;

er

office

market

that it

say

is

be¬

will

prob¬

viciously selective.
would

I

in

next

the

expect
to

be

uptrend.

and

goods

companies. Selection within these
will also be all important.

groups
*An

address

Customers
York

by

Mr.

Brokers

July

City,

Kahn

before

Association,

23,

1963.

ihe

Ne\r

j

Granville to Publish
Market Letter
A

market

new

"The

opinion

Granville

Market

letter,
Letter"

shortly be published weekly
subscription basis by Joseph

a

/Mr.

Granville

has

announced

that he will be leaving the invest¬
ment

brokerage

vote his time

letter

and

also

completing.
published

business

to

de¬

fully to the planned
to

The

this

book

a

book

Fall

is

by

he

to

is

be

Prentice-

past

leaders

You

"A

Strategy of Daily Stock Mar¬

ket Timing for Maximum Profit."
Investment recommendations

can

rarely buy last year's leaders for

and

next

although

said,

Basically

application of technical principles

-

year's

may

,

market,

be the

same.

would- concentrate

on.

or

at

to

analysis in the

visit

which

in

might

benefit

stimulants

new

from

most

in

the

econ¬

this.

clude:/.
*

Service

area
-

would

we
,

industries,

~

-

in¬
-

including

continue

the

this

?

Since

new

to

trends.

He

letter, he

reflect, his
plans

to

major financial- markets

country to help stimulate-

interest in both
:

In

will

market

least give emphasis to those areas

omy.

.

companies,

consumer

Hall, publishers of his first book,

the

the

durable

E. Granville.

profes¬

more

equipment

some

all

intensify. I would go so

to

as

faT

al-

Market

I would expect the selec¬

leaders

the

ofline,

the

and

more

market

we

this level of the market
appear: out

Professional

equally.

some

June
\

outlook

cluding cosmetic companies; drug
companies; non-durable consum¬

will

benefit

Nor

times, and

at

con¬

not

far

and "doesn't

15.65

numbers,

already employed

will

ably be

unfavorably -.with
of

spell

and

tivity to

yield of 2.86%

1961

could
in

and

P/E

stocks

1961.

ratio

the

all

sional,

from

17.5; times

P/E

More

coming

earnings and yielding 3.3%. This
20.13 times and the

I

out

companies,

par-.

con¬

a

Naturally,
As

above

however, stocks

about

at

in

market.

increases

groups

high which didn't quite

that

that

insurance

savings and loan; text book pub¬
lishers; teenage beneficiaries, in¬

on

A

the low of this year made on Jan.
and

see

siderable figures.

this is about 6.5% below the

of

substantial

a

life

in

growth

undoubtedly been built

but I have

frame of refer¬

72.6

tre¬

public

at

all-time

of

and

increase

has

these

and their stock

68.19. Just to get a

wide

huge

the

over

increased

can

you

the

into

to

it that the market

3 points
up

(I

long time

a

customers

Index

that

supply has not increased

ticularly,

about the stock market? Recently
S.

by historical

to

a

ratio

expansion of mutual funds, while

Improved Stock Market Values
So

due

While

P/E

a

equities

has

years

pension

before

consider

you

participation,

J

past decade.

that

for

mendously

the

during

if

demand

15

it

basis,

fluctuations.

is not cheap

17.5

past

and of longer duration than these

term

near

cognizant

am

the

to feel

a

higher—I certainly can't

moves

predict

a

yardsticks,

the

<

Initial generation is expected in Sep¬

commercial

somewhat lower

of

at

90%

on

go

of

are

completed.

full

utility

moving upward under the impetus

More

98%

expected to be

pe¬

from

well

run

finely balanced

2

;

a

highly satis¬

are

through

These

ence

in

equip¬

and

stimulation
should

source

ago

deposited

Trustee, Chemical

Washington Water/Power Company, the four largpst elec¬

credit

new

Thereafter, the

of the Wanapum

major purchasers of the total output of

guidelines

that

initially
Fund

expenditures lies ahead. As

business

we

retired.

are

revenues

and

of

the

and

be

Bond

Wanapurh has been under construction for about four years,

tech¬

7%

the

Illinois

Portland General Electric

evident

factory,

a

with

for

from

rising

by the

and now is

That

the

depreciation

new

offering will

with

improvements

derived

the

passed, however,

coupled

'

and

plant.

only

was

number

a

cur¬

Hutzler, Morgan Guaranty
Company of New York, Discount Corporation of New
York,

Continental

from

capacity.

excess

period has

it

had

we

;

Company, which will invest the proceeds of
the $170,000,000 offering in U. S.
Treasury Bonds supplied .by C. J.
Devine & Co., Salomon Brothers &

cured

three to five years ahead, not the
next

from

the 1959 bonds

new

needs

at
are

intthe aggregate 0f $195,000,000 to provide

Redemption Fund

third

as

normally built to take

are

of

care

in

the

in

quarter of 1957. Inasmuch

3.50%, !

priced
Bonds

National Bank and Trust
Company of
Chicago. The Bond Redemption Fund will retire in
1970, outstand¬
ing Wanapum bonds of the 1959 issue maturing on and after
July
1, 1970. The new issue will be secured by the Trust Fund until

expendi¬

recov¬

was

Bond

and

uptrend

equipment

Excluding

peak

Spending

major factor is the

of

and

Term

Bank New York Trust

1

,

Capital

3.85%

to

are

being issued to finance the refunding of
Grant County P.U.D. 4%, 4V4%, 4V2%

outstanding

Proceeds

Trust

Resumed

2.80%

Bonds

the next 45 years.

over

y

rising

a

are

from

Term

The refunding program will effect an estimated
$46,000.000 reduction in the cost of electrical
output from Wanapum

Dr, " Gailbraith,

factor

yield

Washington.

af¬

purchasing power, the. uptrend of
family formations should be ,a
plus

priced to

are

for the construction of the
Wanapum Dam and its 831,250
kilowatt hydroelectric
generating plant on the Columbia-River in

-

powerful

of

maturity; the 3.80%

funds

ignoringjfie snide
of.

Bonds

upon

4%% bonds sold in 1959

most

an

Serial

rently

earth.

have

you

be¬

pros¬

yon

The

The bonds

true China

were

would

to

means

offering consists

103y2%, to yield about 3.62%; and the
priced at 103V2% to yield about 3.69%.

being

naive

so

The

depending

main

high level of discretionary.

a

compare

formed in 1956, this
dropped
low of 269,000 in

ered,

not

implications
and

an

decline,

were

full

1964

the

trend

Where, however,

de¬

cline from the peak in 1950 to the
low in 1954, have
dropped off sub¬

a y

this

of

on

but

the

am

India

reach

-Family formations which
a

that

this year's

expenditures.

$197,000,000 Public Utility District No. 2 of
Grant County,
Wash., Wanapum Hydroelectric
Refunding Revenue
Bonds, Series of 1963, is being made
by a nationwide underwriting J i
^rou£
of approximately 465 members managed by John Nuveen &
Co. (Inc.), B. J. Van
Ingen & Co., Inc., Blyth & Co.,
Inc., Kidder
Peabody & Co., Merrill Lynch, Pierce, Fenner &
Smith, Incorporated, and A. C. Allyn & Co.
V"
$40,000,000 principal amount of
3%%,
3Vz%y 3.60%, 3%% and 3.70% Serial Bonds due
annually April 1
1971-1988; $51,000,000 (100% Sinking
Fund) 3.80% Term Bonds
due April 1,
1998; and $106,000,000 (100%
Sinking Fund) v3 85%
Term Bonds due
April 1, 2009. ' ;

use

until

later

even

basis,

fluent society,

move¬

Why?—In most of the postwar

two

they

benefits

perity, for if this

strength

recovery

early postwar recoveries.

ventory

are

probably be of longer

any

dation

the

people

witnessed

lieve that population

ahead,

move

modest

usual

a

Well, whenever- it is est'mated

in the business cycle

wait

and

was

highly favorable

a

stantially since
for

of

begun to

is

more,

70.-

point?

How about now?
a

is

at

it

at

as

it

as

and

that
In
a

have

over

000,000 people employed
wages,

low in

Manufacturing inventories

beginning of

t'~at

might

important

more

May),

ahead

sales, which is

have

and

stant p"bl*city and urgency
not

have

1962,

dip

well

run

teen¬

VM be pardone *1 if its con¬

rr

level
Mean¬

year.

fairly steadily upward (there

is far more;' fluencing

of view

impor'^^tthan the numbers (ours
is

highest

last

to

a

method of determin¬

u'"a~ployed

project'on).,

the

of

worked

industries

ing industries, which hit

Game

stereotype

rate

our

upturn

birth

and

than

real

be

logical that

peak.

Unemployed
second

the

in hours

recovery

Optimistic

The

of

manufacturing

also

I

expansion to

nual rate for the fourth quarter.

which

ti™es.

peak of $38.4 bil-

indicated $41.3 billion an¬

an

at

extremely mild,

six

$39.95 billion in the third quarter

although

was

previous

further

a

young

ex¬

quarter

estimated to have

new

have

correction

The

not

tures.

downtrend,

expandei portion of the economic
the

equipment

months and

trend

cvcle,

down.

in

believed to have reversed the

are

new

early

basis,

penditures in the second

while

and

an

1943,

earlier

will

The

spect, which leaves me to feel that
the: recovery: which began

The

on

'

to, family formations should again
be
heading upward, instead of

second, quarter.,J

New

April

such

even more

the

on

and

our

prosperous

Gross Na¬

National

first

Market

on

offering of

■

and

from

impressive strength*- rising

that

Now

produc¬

Gross

fact

1942

the

but by the end

based

year,

for

during

year,

reversed.

one

start

the

rate

of

thoroughly insensitive

a

since

this

its

measuring rod, showed

is

short, therefore, there is in

had

industrial

level.-

peak

evidence, when looked at in retro¬

in

when

peak level.

a

gain

a

continued

thing

This gain is all

tion

Other

In

is

Public

Up Again yy/'/

celerating

of

One is plant annual basis of $8.3 billion in the
expenditures, a first quarter and another $8 bil¬

last year when they were

ter

This

'impressive

more

peak

new

a

mentioning.

construction

and

June.

Product,

economic indicators,, two more are

worth

is typical

as

greater than average

considers

a

to. pro¬

of

then,

from

tional Product, start from, close to

\

do not intend

I

of

in

close to

facturing sales, hence the backlog
was

been

125.1

pro- j

120.2

beginning cycle, the gain

5% from Janary.

dropped

down to its low in June, 1962.

to

strength, reaching

in

one

Industrial

year.

jumped

118.2 and since

New

for

of this

ary

the

at

$197,000,000 Wanapum Power
Project Issue

marrying

February

Quite obviously the p r e s e n t
cycle began to develop in Febru¬

longest periods of relative stabil¬
on

Last

yet

believed

Contraction in this figure prob¬

of

the upside

on

is

Formations Headed

half of this

is

it

not

are

it

(figure dropped to close

Family

ably

conveni¬

when

or

cycle.

new

a

Upturn Began

percentage point range, one of the
ity

begin

the

fraternity

now

ently forgotton it)

figures

for" 1962

to 300,000.

last summer, al¬

tion did through the latter half of

July cf

.

of

way

final

available

19

1957,

personal projects.

Mr.

Granville

-written the Morning
ion for E. F. Hutton

has.

Chart Opin¬
&

Co. Inc.

^

■*,

..,

^^uo.

n*W.-,

.-■

'«-«,Hm«rt

20

The Commercial and Financial Chronicle

(452)

mated

On Turnpike Revenue Bonds
1956 it. was at 4%.

Continued from page 3

by March

toll

August it was 4V2%, and by

toll

prop'osed

projects,

the underwriting houses
hard

for

work

at

easier money.

never

interest

and

against using the turnpikes untilthe

toll

rates

is

amount

of

Then too,

there

it

•

for a while

might become
Then there

showed* a'great
in

y'; yield

jbrisis. The American public could

is

point

be

back

the

of

dismissed

this
it

study.

J It

projects

into

Was

the

it¬

halcyon

deal

great

a

soul

of

practical yard¬

a

potential

the

of

some

toll

new

the

in

believed

many

latest

that

States would have to be the sup¬

oil,

of

plier

etc., for

,

the

Old

•.

mean

gaso-.,

line.' rationing here.

Some

went

further.

evert

They

thought

the

searchers there

be

point

one

of

how

for the

were

general

ment,

namely,

eotsjd

succeed

that

from

trucks

and

agree¬

toll

no

.

^inless

proportion of their

of

Because

unanimous

to 4.26

road

buses,

i

r,

t his

practically

(in substance

bonds

leveF but

toll

selling at

close to their all time

revenue

are

Parkway

in

New

kere

road

a

(in fact the only road of

any

considerable

gets

practically
from

enue

Trucks

length)

all

allowed

rev¬

vehicles.

passenger

are

which

toll

its

117%

profits in stocks, which further

The

market...ZV-ZzZ':
Federal

of .the

passage

state

System

what

would

40,000

of
be

southern
busfes

to

the

of

end

the

use

road

and

operate for its entire

may

turnpikes," threw
into

state of

a

said

"the

ished,"

"the

■

c

■

;'

■

■

•

...

ginia

But,

with

again

Port

Since

1956

lot

a

able

of

of

tion

and

ch&nge

undoubtedly

was

the

in

V. In

of

that

was

is

Money rates began to stiffen early
in

with

1955

a

100% col¬

change.

By July the brokers loan

rate moved from 3V4 to 3V2% and

projects and the

has been

retired.

between

the

TABLE

and

the

its

cover

Parkway managed to

interest

charges.

increased

revenues

interest'

charges

debt

service

set

not

are

steadily

and

toll at five

pay

would

therefore

be

five vehicles instead of

as

' :'y :

one.

V

y

ZZ

Gr,

N.

(1)——:—-—

O.

$459,500

P. (2).—

330,000

V2

comprise

1%

of

of

mercial

the

of

about

the

traffic

coverage

the

prevalent opin¬
for

need

were

many

the Park¬

at

was

first discussed.

Some claim it

was

for this

that the State

of

esti¬

New

reason

Jersey

had to

guarantee

Interest

Bonds
Coverage from Today's
Earnings

on

Present'

% of Debt

Origimal

Present

Original

Present

Debt

Reduction

Interest

Interest

Interest

Interest

$457,750

0.4

$15,642

$15,457

322,175

2.4

9.899

9,717

.

-

1.16x

1.17x

2.06

2.10

1.39

1.44

3.4;

1,840

1,777

3.3

9,800

9,477

1.29

1.33

4.4

2,944

2,808

1.98

2.07

40,000

29,478

26.3

1,135

813

2.20

•_—-—._;——

160,000

155,968

Kentucky (5)
Maryland Tunnel-L-^-J-----.
Mississippi
R.
Bridge (6)__.
Mew
Jersey
Turnpike (7)
New
York
Thruway (8)—

38,500

35,152

5,264
1,195

2.04

(2)
(3)

35.8

5,170

3,301

2.76

1,915

1.73

2.06

11,929

2.29

2.92

'972,000

961,000

Income

is net

is

1.1

28,020

27.798

4.7

10.595

10,093

2.00

32.282

15.0

1,331

1,130

2.44

2.87

68,000

63,879

6.0

2,491

2,338

1.01

1.08

211,500

64,712

69.4

6,099

1,996

4.29

13.09

58,500

56,787

2.1

1,656

1,608

1.84

86,280

9.2

;

.

2,850

1.51

2,588

level-debt

tenance and operating costs it is
natural to

in

1961

tolls

plus one-half State

Tolls

plus

Duval

P"vs

expenses

<6)

Net

'7)

Does not

vd)

Both

revenue

(9)

Does

not

tolls plus

loan

eive

County

gasoline

income

no

half State Highway
credit, for
and

include

charged

preseiK debt and
later. The current




Highway Fund

taxes

fisure

comprise

is

No.

called

senior

debt

GO

debt

included

new

loan

of

in

junior

of

No.

income

figures
is

used

the

the

i

No

expenses

charged

so

last

August

as

available

to

it

is

not

be

figure

gross

producing added

available

the

also—most

author.
as

of

Most

May

are

30,

Amount

Outstanding
Port

Authority__.__

Tunnel„

Maine

F!izabp+h

;

River

West Virginia

:

Tunnel__Z_Z

I_

_

Massachusetts Turnpike
Pennsvlvania new "

I

Rich.-Petersburg
Illinois

Calumet

______Z_ZZZZZZZZZZ~'ZZ
Z

vehicles.

ZZI_

$71,750,000

income

as

1963,

of

done

is

is

the

in the first column of Table I

as

funded

yardstick would be the total mile-

debt

1.73

interest

debt

covered

times

debt service

total

and

1.03

level-

times.)"

«

such vehicles traveled. Few

But
way

is

unique

so

itself with
cial

Garden

the

ticators

State Park-

in

supporting

practically

traffic?

Could

have

^

no coal me,r-

the

been

prognos-

completely

There, is

proof available.
separate

the

deducts

income

toll
of

On

if

that

they., end
from
iate

as

^be

on

figure

a

for

interest

plus

the

in

Z

of

which

revenue

alone."

cars

the

debt

*

inccme and

operating costs,

with

to

it

shown in

percentage

same

and

passenger

this

takes

one

revenue, adds to

might be called the "net

pectus

of

figures.

concessio'n

maintenance

shown

number

words,

car

TaWe r)

actuarial

no

such

certain percentage,

All projects keep

records

for

other

passenger

a

~,

.,

publish

In
-

..Were There Others!.

:

Z

the mileage is quite small.)

both senior and junior

on

Z-

percentages

covered and the vehicles creating

have

charges

the

cause

passenger

for

charge

car

original bond

ment and one gets a

fund
plus

-

charges

the'- amount

sinking

; *

Re-

pros-

retire-

or

'
"
..

minus

vehicles

lumped together into

a

few

Interest

$3,408,000
2,508.000

1.05

78.600,000

3.144.000

1.46

1 877.000

1.P3

133,000,000

5.126.000

.67

239 000.000

7.887,000

298.000,000

9,136,000

.63

75,150.000

2.657,000
17,188,000

1.46

3,539,000

.54

1.48

1.28

are

classifi-

one

the

some

Table

estimates.

II

erating

which

the

have

well
toll

op-

classification

vehicles

the

Table

I

points

up

follows.

using

be

curious

does

the

road

as

minded,

nothing

if

state Parkway in the

could have done it with

we

TABLE HI
in i962 earned

These
full

projects

service

debt

interest)
percent

and

(principal

exceeded

it

percentage of

—

Texas Turnpike

60.1
56.7

46.0
22.2

19.2

;

would

...

passen-

y

Richmond-Petersburg T'pike
These

>

the

Garden State Parkway—__

passenger traffic to the whole and

and

shown:

it Florida Turnpike

else,

interesting study in

an

the variation of the

III

noted

only passenger cars!" Glass,

pas-

to

the

will

four other roads have joined
Garden

the

It

been

Table

paid by those vehicles. Turner Oklahoma Turnpike

revenue

For

which

have

shown in

are

debt

the percentage of the total

as

computations

The table shows the

outstanding.

car

These

made and

"Yes,

below lists all

roads

aione>

figures fhat

would be accurate enough to work

the

wide

very

differences

as

No

*

.

projects,

in

1982,

and

II

Passenger Cars j

interest

a

few

June.

J

Garden State Parkway

99.5 Est.

Texas Turnpike

95.2

Maine

the

Turnpike

Florida

Turnpike

Turner

Oklahoma

Turnpike

Illinois

Turnpike

Indiana

Turnpike

Rogers

Turnpike

,

New

West

Turnpike

Turnpike

York

Connecticut
Ohio

Turnpike--

Oklahoma Turnpike.-

Jersey

Turnpike

—-

83.3
73.9

89.5

75.1

87.7

77.5

87.6

81.4

87.0

64.1

86.2

81.3

85.4

75.4

84.8

67.3

84.2

69 2

82.7

74.6
1

"mixed traffic" at

the two

t

f

Pennsylvania Northeast..

between

Z

projects.

*88.2

89.9

78.9

down

Revenue

85.8

Turnpike

broken

of Total

(

90.3

Virginia Turnpike

♦Includes small amount of

i

99.5
Z

:

83.5

Thruway—

Pennsylvania East West—

not

'

90.7

Turnpike

Kansas

[This P-rcentage.

Percentage of \ Produce

Total Vehicles

Massachusetts

through

have had to increase their

as

2.34

although

.to

TABLE

Frcm Earns.

1.75.x

and

panel

they,

same

However,

toll

light

very

the

is

Kentucky

41,700.000

101,000,000

reasonable

seems
use

would

used.

yet

1-2-63

but

Coverage

52,800,000

4tl.279.000

It.
to

those which do, the variation, percentagewise,
between
mileage

New

Massachusetts

the amount of toll paid by those

had

coming from the proposed
improvements. The 1962 earnings;

1.89

.

2.13

Projects Which Have Not Retired Debt

Massachusetts

to

income

-

latest

latest

of

than

a Starting point. (A more accurate

Richmond-Petersburg
are

number

road

age

2.

income.

either.
interest

the

2.10

7-1-63.

sold

the

bonds,

lien

these

on

calculations.

S21.325.000

to

using

therefore

1.52
,

2.

for

they would .be

assume

more

vehicles

times and level-debt

gross.

Funds

$6,224 OCO

related

l.Oo

roads

only in this tabula¬

'

funded.

State

4.33

-

310,567
•

to

interest

1.07

2,275

95,000

interim

with

to main-

2.24

15,184

38,000

closely

very

level-debt

3.07

*

18.2

is grcs3 income as expenses paid by State Highway Department.
Income is from tolls
tion., No gas tax money included and no consideration given to some bonds
being GOs.
Doe? n-t in-Jude $40,000,000 junior debt as no income
coming from the work scheduled

cn

1.04

21.5

Tunnel

(4)

are

z:

1,309

Income

(5)

The

-Z

53,198

Texas

(1)

v

368,421

Oklahoma

Virginia

V

5,400

8.7

65,000

.

Rogers
Pennsylvania
(Old) (9)__;

2.5

:

469,200
326,000

Turner

>

115,548

180,000

_

Oklahoma

vz ZZ;'.'

concession

through 1966 by which time it is

total

66,763

—.

that

expected there will be additional

senger

Retired

44,425

—

income varies

(During 1962 the Parkway sold

$40,000,000

out

270,775

Kansas

Formula

a

shows

passenger car traffic. As

service to 1.16 times.

cation.

there

askance

com¬

70,000

_

J 6 eX"

eZai1

r

on

the

on

project when its financing

~

Xway(4).»—
Jones
Beach'

'

* maintenance and opera-

.

Devising

At the end of 1962 interest

trucks

46,000

_

Jax

;•

actual

earned

risen to 2.03

the

280,000

Bridge (3)

Indiana

>

.

,

I

Which Have

Debt

State

•

int

•

n

.

Study

being

buses?

who looked

per¬

of

because

type" toll collec¬

A bus, for instance,

'

Garden

5^

After

were

up

the

was

,

np.,cp

earned 1.80 times. In
addition, although the serial maturities of the

ve¬
ve¬

(000's Omitted)

Connecticut

:

whether.^

operation with the full mileage in

use

percentage of vehicles in the

Original

total toll revenue

woZld pay°Tt"s

or

ion

No relationship

percentage

comes

traffic.

fact, the reader can study the

Projects

while

Doe(j the precedlng table

probably would not

lantic City would

not

completely

not'

the. project

,

engineering

to

centage of their original debt that

rate

-

•

.Illinois

on

87.6% of the traffic turns in 81.4%

self-supporting without trucks

way

discount

a

"tolls,

dooif

0f the

be

Because

revenue

-

oafor^pWraoyper°lyeatLSOmeb
^ W, *
^ppLin
C
^ ??ade °f

and

accompanying tabulation (Table I)

market.

money

total

"next.

entrances°" Tn«'

arid

the road

the

sea-

wrong and would other roads also

needed.

the

right

?u°fe.;Z More serious were claims

!&

of

-

way

going from New York City to At¬

hindsight, the greatest bearish in¬
fluence

the

*

Regardless, one has but to ride
figure
showing whether they
the
length; of the Parkway. ,to paying those tolls by traffic classi- couid or couldn't have paid their
fications.
On most projects, beknow, thaf commercial vehicles do
way from passenger car income

the

of

one

income

V2

commercial

"barrier

system.

just

issues, pay¬

revenue

of

using

the

counted

according

estimates

value

hicles

barriers

tolls

than

hicles to the total number of

Massachu¬

at

toll

less

impossible to determine the

102%.

about
from

lection

the

"a

or

to

or

commercial vehicles.

percentage

111%, Maryland

Authority

told

the

of

investors have learned

chief lessons

etc.

The Real Culprit

.

setts

turn¬

down

„r

have

and

all

these

It is

revenue

103%

at

but

1%

from

help funnel traffic to

Tunnel at

Tunnel

■

,

projects we

Federal

the

bankruptcy"

pikes into
(

force

which

toll

fin¬

were

free

new

would

ects

People

panic.

new

of

investors

many

turnpikes

highways

miles

other

of

Thruway
proj¬

York

jNew

For

f

length,

the Jack¬
sonville Expressway at 116%. Vir¬

"toll-free

really

and

105%.

Highway Act creating the Inter¬

only,"

contributes

Indiana, for instance,

87.0% of the traffic produces only "

t

earning

4

depressed the

people

times.

Jersey is quite remarkable,
is

today?

us

Are all the projects now
what the engineers had
for World War III—with complete
estimated?
Oddly enough, "no"
rationing!
As all these affected
for only four are above estimates:
the market prices, excellent op¬
—the Turner Turnpike at 152% of
portunities became available fof
estimates, Garden State Parkway
tax-swapping, using the loss ort
the Revenue bond holdings to off¬ 122%, Connecticut Expressway
set

get

sizable calculation,

a

revenues came

opinion

State

Garden

1.04 in

or

Brokers loans are still at the 4% %

highs.

might be the spark

Suez situation

road

summer

pleasure road,"

a

the

each percentage

jn tolls. On

many." 64.1%

every year and by the end of 1961

of

.

Where does that leave

"World, which would

that

what

..

from 3.22

down

United

to

remains

*

.or

Regardless

"magic formula" there seemed to

A case

off from par

and

war

the

"a

was

True

"talked down" by

was

"only

fact

road.-

about to be brought

market;

.to a 3.40 yield while
still; remember ,gasoline and tire.
Massaphusetf^ Turnpike 3.30s were anyway) the performance of the
rationing

the

the

that

a

whereof

increase.

It

stick by which one could measure

Commonwealth of
Massachusetts 2.30s which w e r e

the Suez Canal

was

in

than

right

many

bonds.

more

self

to:

full faith and credit bonds

many

political football.;;

a

r.! increase

1.15

it

subject

the

though

as

showed

issue

for

not

road project

Aaa, Aa and A

obligation

general

enue

regarding

spots

and

charges

appeared

existed; I

that oh the

yield on
less: than the

.was

many

in

should

searching to find

political Except fpt; two: projects, no^rev-.

was some

in

rated

on

boycott

been

rather rlightly

there

ifi

increase

the

$285,000,000 of bonds isbuild-

to

Thursday, August 1, 1963

.

days of turnpike financing when

brought about

shown

be

can

increase

certain

a

boycotting

interference
toll

that

doubt

no

to

also

(which many eventually. w ere). turnpike issues
There

in

progression

But the increasing

rates

whole

reduced

were

mid-

turn-around
a

truck

.

sued

bugaboos of the 1956

has

.

the first

road

(almost!) "V "• Z--.

:

One of the

turnpike

decline in all the bond markets

a

"striking"

the .stories about trucks

with

Passenger Car Road

period, ' the

In

still higher, only

was

sharp

a

November

of

materialized.
For
instance, it was hard to combat

years,

have

to

had been

couple

a

July 1957 it

which

on

100%

ZZ'ZZZ

V-

Z-ZZZZy- '-V-y;';-

false,

A

Over;-$2,500,000,000 in.

collected and debt

revenue

paid off exists. ZZZ-*

a

road.

fil&JS, iWK

one

-

71.7

V

68.8

1

53.0

44.6
'

38.7

*

76.3

toll gate» fVehiele figures

>

198

Volume

Number

6286

.

The Commercial, and Financial Chronicle.

.

(453)

ger

net

car

to

shown

exclusively

the

by

full

earn

service

that type

from

with

percentage

debt

justification^

some

Jersey's
difficult.

of

Everyone

knows

more

re¬

to

road

Kentucky Turnpike—_____

0.2

quired

0.4

3V4S every year and then retiring

7.9

junior debt much faster than

Maine

Turnpike

New Jersey
New York

Turnpike..

Thruway.____—

of

amount

called

11.1

paying off the

in

for

the

senior

debt

•

was

Prospectus.

Illinois Turnpike.^—.—16.6

fact, redemption requirements

Ohio

the

Turnpike.

Connecticut

Turnpike

Massachusetts

Rogers

West

through

ing the

1971

is used

513.4

comments

this

in

is

III.
list

there

but

of

one

It

(2)

the

Index

-Buyer

Daily

recently

construction

Its

for

toll

any

cost

road.

in¬
cost

mile

per

Its interest

(4)

of

only

$15,000

is

for

the

original

section

new

figures
road
still

is

Here

struction.

as

the

under

con¬

again

fourth

cost

mile

per

Third

lowest

mile

at

with

a

the

At

is

who

is

the

Texas

car

the

full

Each

tariff

that

This
back

the

service

Maine's

echelon

the

picked

raised

only

for

light

because

to

by

in

the

No

debt

no

the

for

of

from

their

would

vehicles

is

1962.

such

debt

Debt

service

debt

exclusively

from

passen¬

revenues

and

possibly

probably
with

cover

only

pas¬

And, it

Petersburg

-

That

company.

was

into

that

leaves

only

Gardep State Parkway which
its own"

on

increase

—no

in

to speak

so

toll rates

and

the

older

(which

runs

$2,141,000

and

$76,000

mile

per

respectively. (Excluding the new
junior debt.) Should the old cliche
trotted

what

out—i.e.

heavy

do for

"That

Let

shows

"Widened

Out"

Vacation

Periods

Table

listed

V,

the

percentage
car

living

Table

first

of

IV

and

showing

the

yearly

passenger

the

and

the

second

showing

and

for June, July, August
September in 1962. The sec¬

ond

table is shown because there

same

to

seems

have

been

or

in

43

According

to

"Monthly

whosd

where

and

children

the

are

"back

"grown

to

school"

as

1962,

retiring

debt

much

faster

required—and again, like

S.

Jumping
does

it

find

"the

ahead

not

to

after

or

'V** \
tables,

the

surprise everyone

to

Showing
Till"*7

:

mendous

result

a

commercial

A

llO-11

most 60%

Yearly PASSENGER

ct_________

Ct'

Turnpike

Indiana

"

of

tre¬

income!

of the total tolls

Tn

_________

Thruway

Oklahoma

27.2

Rogers T'pike 26.5

Virginia

Turnpike 25.8

the

1.3%

per

over

the

term

U.

S.

Garden State Parkway—

Massachusetts
Connecticut

25.0

Turhpike_ 24.5

Turnpike.— 24.3

Al¬

comes

Y.. 1

..

Tolls

A

X

Collected
X

C*

C

t

_

L___

Turnpike

New York

51.6
50.4

Thruway

two

more

roads

and

West

It is

less

or

Rogers

—

"south¬

Oklahoma

Virginia?

Kansas

Petersburgh
percentage

;

and

Kansas
Texas

Turnpike—

Turnpike

Florida Turnpike




financial
as

countries,

institutions
of

means

elsewhere,

as

faster

In Far Eastern

family

households do most of the national

the

if

the

is to put savings into

projected

long-

Treasury bond

issue,

turity
into

the

in

bonds

1994.

account

rates around

tangible as¬
sets—gold, silver, real estate and

works

of art.

But

greater

a

pro¬

But

and

to

the

of

fact

confidence
no

rate

has

is

different

tries

where
has

tion

will
than

The

"While

indulgence

countries,

' v

;

number

have

:

of

that

de¬

:

:

i

the

closer

of

number

American

South

,

be

.

limited

financed

to

those

by plowing

self-defeating

recourse

./■v.'.';.. v

perts

press.

small

places,

our

as

that

has

/

when

In too many

table

shows,

this

"As Reinhard Kamitz, President
of

the

Australian National

said at the annual

National-

whose

Bank,

meeting of the

Industrial

Conference

17: - 'The

lowest

the

collections.

But

in

10

ably

must

reduced,

if

consider^:

be

really want

we

ap¬

the

best possible results

parent from a comparison of the

ern

economic

est

possible standards of living'."

annual

rates

*

'

■

This is

depreciation for

of

•' V!' '•;;

v

"

',

'

■.———r)T.

Ceylon

Venezuela

—

—

Guatemala

El

—

Salvador

Canada

sachusetts?

Annual

of Money

'■

—

of mod¬

policy and the high¬

Indexes of Value

''

■

V,

Depreciation
1963

1961

1953

Philippines
Belgium

Aren't

they supposed

to feed all the New

traffic

its

to

how

England

vaca¬

destination?

does

Oklahoma Rogers

Virginia

t'pike

48.3

Turnpike 45.8

Garden State
Parkway._

44.0

Illinois Turnpike.—

43.9

Pennsylvania

42.4

Kentucky Turnpike..
40.9
New Jersey Turnpike.— 39.7
Kansas

Ohio

:;

for

account

one

and

Turnpike._____.

it

true

that

people each
U.

S."

the list?

on

—

*52-'62*

'61-'62

100

95

94

0.6%

100

<93

93

0.7

100

94

92

0.8

100

91

91

1.0

100

91

90

1.1

1.0

100

94

89

1.1

5.4

1.0%
—1.0

:

2.0

;

—_

selves down in

of

Whatever

setting

and

which

might

proved

arise,

here.

toll roads which
ern

what
eral

to

are

section

of

questions

they

The
one

think about the great

39.5

.

cannot

foregoing
pause

to

the east¬

89

1.2

2.8

92

88

1.2

3.7

United

States

Italy

country

and

they contribute to the

—

gen¬

welfare of

our

nation plus the fact that the Gar¬

36.4

den State

18.0

Florida

32.0

is

Parkway in New Jersey

truly "unique."

Africa.

__—_

Austria

—

—

:

.

:—

Denmark
Ireland

—

Norway

<

United

Kingdom

Sweden

Zealand..

Japan

;

1.9

1.4

4.6

100

—.

—

Finland

—

Greece

Mexico

89

86

1.5

3.7

100

84

80

2.2

4.6

100

81

80

2.2

100

84

79

2.3

5.4

100

82

79

2.3

3.6

_____

Spain

—

Iran

-

1.0

79

2.4

100

81

78

2.4

100

78

78

2.5

100

81

76

2.8

7.0

100.

79

75

2.8

4.6

1

79

79

3.7
.

—

5.4

'

75

2.9

74

3.0

100

76

73

3.1

100

77

s.

—

:

2.9

75

78

77

100

3.7
v

4.5

3.6
5.9

72

3.2

100

73

70

3.5

4.2

100

72

69

3.6

3.6

100

66

66

4.0

.

—

100

62

62

4.7

0.9:

100

63

60

5.0

5.1

100

54

54

6.0

100

53

50

6.7

5.9

Colombia

100

51

50

6.8

2.4

Israel

100

51

46

7.5

9.0

Uruguay

—

7.9

2.1

100

41

39

8.9

4.2

23

21

14.6

9.2

19.7

21.8

100

Argentina
Brazil

.

i.

Bolivia

0.8

100

44

45

100

(Taiwan)

Turkey

.

11

14

100

13

100

6

100

1

'

'

9

21.5

33.8

6

25.0

12.1

1

35.2

5*3

♦Compounded annually.
.
.
Depreciation computed from unrounded data. Value of mone> 1S
official cost-of-living or consumer price indexes.
,

Noter

/

1.3

1.4

87

100

——

France

88

87

92

100

I—__
__—

1.0

89
89

100

100

;

—

Netherlands
Pakistan

Chile

Richmond-Petersburg

—

.

Australia

'

100

100

—

Portugal

China
our

1.0

I

92

100

complex of

crosses

economy and

Texas Turnpike

38.6

other

any

study merely gives

19.3

_„

answers

1.2

100

Switzerland

New

these,

be

them¬

vacation spot?

one

the

more

"touring the

go

89

90

100

—-

Ecuador

India

and

more

year

instead

20.7

Turnpike.

Pennsylvania

high

so

ex¬

there

lesson has not been applied.

Among

accelerated

Brazil and Argentina.

what about Connecticut and Mas¬

tion

v:
can

are, un¬

the U.N.

as

recognized,

the

to

savings

unchecked inflation.

to

wage-

countries

not

printing

industrialized

rather generally.

can

major

Where such

do

likely to flourish,

countries, including Western Eu¬
rope

into

money

remain

can

mobilize

•.

United

stability,

finai}-

turn

"Financial institutions

spirajing has broken loose

a

in

back profits, by foreign money, by
taxes—or
by
shortsighted
and

important

moved

price

projects

infla¬

even

is

eco¬

play
a
prominent role, sizable investment

coun¬

of

or

including

over-all

the

that

intermediaries

1 ong-term

in

pay.

a

institutions

channel

situation

other

many

faith

States,

dollar

,

weakened

stroyed

entrust their savings to

cial

4

the future

past.

in

of

range

the

in

the

in

to

vast

expression of

an

that

worse

it

that

being carried out productive projects.

are

interest

6% represents

fare

bonds

long-term borrowing

lending
the

S.

income

nomic

real estate mort¬

on

household

of

growth in those places*
notably Japan, where people feel
secure
enough in their currency

this

interest

U.

on

ma¬

take

wanting

4%

5%

over

by final

People

in

Richmond-

having
of

have

saved and made available for

•

Texas,

48.5

Oklahoma Turner

Turnpike— 21.3

of

markets

economic progress.

of

who

value

surprise to find Florida,

no

48.5

Pennsylvania (old)

22.3

Richmond-Petersburg— 21.2

and

years,

Is

•

Turnpike_______ 52.8

22.7

New Jersey

July: opment

"in

officials

portion

of

re¬

stressing the need for devel¬

last

in—

Oklahoma Turner

*

responsible

significantly improved while de¬

projects as Ohio, Indiana
Pennsylvania Mainline? And

ern"

Asia

(ECAFE),

will reduce by one-third the real

South

Kentucky Turnpike

(new)

'

been

latest

Lebanon

23.4

Pennsylvania

23.9

East

in

trailing such

And

(new).... 43.7
Connecticut Turnpike.— 43.5
Massachusetts Turnpike. 43.4

Illinois Turnpike———

Far

our 10saving.
Out of long experience
shrinkage, with price inflation, the tendency

of

annum,

of

Nations'
for

even

Tate

life

>

cently added its voice to those of

cost-of-

performance

Yet

the

terioration

•

West

and

United

Commission

and

and

road"

(old) standing

Maine Turnpike
Ohio

28.3

Pennsylvania (old)

CAR

Indiana

28.8

as

bank's

Voice

rates of
eighth place serious losses in purchasing power,; monetary depreciation in the free
so-called com¬ the performance of Chile has been '• world, which prevailed during the1

summer—vacation

V

June, July August & September

31.4

Turnpike——i 30.2

Turnpike

New York

West.

■

currencies,

arm

mercial

from commercial traffic.

TABLE

-July & August

Maine

Ohio

Jtr

Economic

May

Indiana,
of

an

of

Letter,"

the

of

in

the

Adds Its

Party on Eco¬
nomic Development and
Planning,

measures

decline

N.

Board,

—seashore

pur¬

obstacle

Working

currencies have suffered the most \

big

of

to

""

IV

Percentage

"The

price indexes

Germany

TABLE

U.

the

money.

dollar held close to

average

taking

(

refers

annual

countries.

top of the list.
year

price

before

tabulation

1961-62 with those for the 1952-62

power

Economic

whole,

a

the U.

in

holidays

annual

currencies

decade.

1962, and for the 1952-62 decade

problem does not exist have been
the torrid months.

the

of

official

consumer

tendency promises to

a

the

by

from

compiled

in

tolls collected during July and

August

wide

for

the bank

the various national

"

are

its

survey

purchasing

gages.

Revenue

table

presents

As in'the past

can

see!

us

known

countries'

City Bank of New

shrinkage in the value of

and

traffic

summer

road."

a

behind

show

again

amounts

new¬

project.

York ;

a

debt and interest cost per mile of

as

num¬

accompanying

First National

'

Jersey—as

—

using

coverage

is

car

made

for, like New Jersey, they have
been

cover

be

can

figures available they

than

completely

cover¬
■

undoubtedly

New

to

of

Extension

enthu¬

ger

shy

equalled

'

project

Northeast

Were

Turnpike

that

King of Prussia to the Ohio

siasts might dispute the 7.9% fail¬

service

have

border) and those using the

Coverage

Jersey

for

Pennsylvania projects

upper

years—

Turnpike

Jersey

31/4S

Passenger

breakdown is kept in the

ber

Prepayment Distorts Debt

ure

service

computation

the

for

er

early

lien

on

retirement

the

the

was

prior

$19,913,000—23.6%

would
New

elite

Folks

ating costs

for

"Mainline";

the

it

$24,620,000.

was

to

car income, plus 85.7%
(the 1959
over
the
past several years to
figure) of concession revenue, less.
"widen out"1 the vacation
period.'
85.7% of maintenance and oper¬

closeness

because

debt

$424,000

New

1959. That year

sinking fund. According to the

year

in

Department.

mainly

going

by

proved

year

be¬

coverage

paid

are

closeness

is

schedule
very

be

can

to

when

computation is made

Highway

Richmond

be

the

In

allowed

Florida

well

loss of 43

an
inroad on earnings place on the
investment process.
It
points out that the development of investment
institutions in under¬
developed countries, as the way to help accelerate economic
growth,
is hindered, also,
by uneconomic price inflation/ V

calculated

mile

revenues.

Boost

scheduled for retirement by

income, not net. Like Con¬

State

there

in¬

and

commercial vehicles,

ing debt service!

operation

here,

first

necticut* th_6 costs of maintenance
and

must

were

impact of the

observing

the

which

being hypo-

as

to

the increase in the
passenger car
rate which catapulted Texas and

Below

Kentucky, one must bear in mind

gross

bill.

1962 figures would have been

the

taking effect in 1962.

debt

If,

the

and

late

car

the proper one to use.

by

missed

respectively.

full

footing

traffic

no

prospectus,

to

to

bonded

your

discussed

had been

per

month

1961

passenger

When

of

is

acquired."

16.0%

with

contributing

retirement

the

1961

Commis¬

Herring said "pri¬

aren't

cars

ing in the top group by 1.6% and

increases

ICC

the

failed

costs

per

charges

"got there

Association,

was

Richmond-Petersburg

the

the

debt

the

percentagewise

of

before

have

Oklahoma and

pike

thetically

road

a

in.

taken

speech

would

American Bridge, Tunnel & Turn¬

This

small.

end

.

be

(2)

cost

It

revenue

very

revenues

recent

a

huge

in the

as

City Bank's

power

round-the-world

roads which could

traffic pattern

The

in

is

month

(3)

even

year-round.
variation

$680,000.

at

$22,000.
very

commercial

the

indebtedness—it's the commercial

construction*

interest

lowest

of

because

In

carrier

(1)

as

Turner

senger

only

Us¬

join, the exclusive club of those

tion of debt retirement which has

the

finds

one

contributory factors such
The

only

are

requirements for 1962. One

the

above,

case

charges

all

vate

Florida

the

arithmetic

construction

must remember that the accelera¬

sioner Clyde E.

also the lowest.
The

constituted

for

opened

distorting

National

such

North¬

So—where does that leave one?
terest

that

First

chasing

full debt service by 58.3%
this shrinkage
truly startling figure!
/ the domestic

which

since

the

cover
—a

sup¬

had

last

of

were

same

Mainline

Low

sible1

of $439,000 per mile is the lowest
of

was

been taking place has been pos¬

1.75%

(against '3.25%

which

(It is also the

parts

Jersey

posed to be paid off in 1962—but

actual

very

was

ex¬

penalty than using

a

the

number-of-vehicles-figure).

the next

are

retired) it would

of

$4,744,000

used

and

a

stance).

(3)

It

financed.

in

to be

$6,313,000

already been retired.
Nevertheless the latter figure was

sev¬

roads

be

market.: The

money

Bond

to

financed

was

cheap

oldest

first

the

among

are

causes.: (1)

of

(since those

more

the

Oklahoma

Turner

contributary

act

ex¬

the figures

degree

some

the

perti¬

seem

point. They will

figure

be

by

thereby

New

the

calcu¬

a

retirement

project

If

Table

eral

east

traffic,

lation like this for the year 1962?

in

use

for

before

year

66.0

at

heads

sinking fund.

Turnpike.____——

Turnpike....' 87.9

bonds

in

on

61.1

Certain

plain

scheduled

Oklahoma Turnpike

Virginia Turnpike..

nent

does dne

would

of full operation

year

In

principal

by going back

for the Mainline and the first
year
in which any of those bonds were

1970. The problem

therefore became—What

47.1

because

be shown

can

1953. That

year

the second

junior bonds have been ful¬

filled

40.0

Turnpike..—

acceleration

conclusively

the

figures

Indiana
Kansas

32.5

debt

of commercial tolls

the

traffic:

has been

The

In New

the computation was

case

21

measured by reciprocals of

.

(454)

22

r

ttt

*

Ti

n

:

The Commercial and Financial Chronicle

1

;

V.

;;

.

XxS W 6 u66 It

shall

,

itself that the disputes and

industry finds

production efficiency

general public should take an cut into
active interest in

refuse

ave so

i e

e

longer

no

ol

mo

a

able

to

question

of

a

of

be

basjc

tbe

avoid

Qr

.

_

A
O* T^OTYl
HTVl Y/"
JrXiJ l/I Ullg, -LyUIIlt/O LlO I-jLUllUlliy

^roundTv? feathcrbeddingg isTlfpoinfof monoPolies of labor unions

to

Thursday, August 1, 1963

that problem we

to

come

.

When
wnen we

found.
sought and iound.

.

Continued from page 1

. .

Continued from page 10

first three months of 1963, United

,

and a rather broad and far (it must be acknowledged, how- States residents bought more than
reaching insistence upon com- ever, that comparisons of hosts $500 million of foreign securities,
fined to the railroad industry. pej.|^on among those who and Pr*ces between countries are perhaps one half of which were
What is more, the progress of P
1aL Wp dmnlv made in an area of relahve lack of Canadian origin. This is an
technology in" recent years must employ iaDorvwe simpiy of hard facts and permit only the exceptionally large amount to be
has created a situation made cannf afford to contlnue ,to most general statements); and the bought m such a short space of
wu;r.v,
prattle about the under-pnv- less developed countries, which time, and these portfolio investto order for monopolies w 1C
deged and
down-trodden continue to suffer from relatively ments do not have quite the same
are bent upon keeping men
tn continue unfavorable
terms of trade are seed-corn attributes as direct inon payrolls who are no longer
®
not likely to provide strong mar- vestment abroad. Such heavy forneeded. It is all very well to t0 Plead .the other now anti- kets for exports, while some of eign borrowing in our market is
;+eplf cltmiU
quated concepts that m years them will be seeking a place in not likely to recur, of course, even
say that industry itself should
^ haye
our markets> which thpy must though lower lo„g_term rates 0f
shoulder the cost of rapid nni1^:p:an„ xn r;jp ;nxn nffiPP have if our foreign economic aid interest here and a capital marchanges in technology. The "
,
sp. has meaning, for their emerging ket; which can and does move
,

,

,

Prm_

the

by purely political tact no long

nose

maneuvering, and insist that

radical

something
about

them

ins

a

than

more

liig. uiei
billion

done

be

situation that is cost-

a

half

a

directly, and a

year

good more besides.
And let it be clearly understood that these rules which
,

,

P

•

no.

keep railroad employees co lectmg huge sums for work
which they do not do and are

expected to do, costs not fact is, though, that no con-

not

railroads
great rank and file
many hundreds
of
every year. Not only

but the ceivable
system
of
social
of us all justice or any other kind of
millions justice demands that these
ordinary men continue to pretend to

but large

numbers work, -when there is nothing

the

only

consumers

of

•

i

rect y

*1

i

"

bonds

bought

on

the

;

good faith, and upon divi- payrolls refusing to do cerfrom
the
companies tain work in order that some

dends

whose

earnings
i

dividends and
ice

often

are

•

■

i

jl

serv-

Statements to the effect
PHQt the
thp
cost

rnlPQ
lules

these

such

such

and

each

that
inat

the
tne

that

of

and
ana

-i

can

T

i

saying

pay

,

for

conditions

out

of

such

as a

remedy

which

go

themselves
mu g .
help to enable

r-

to

this

throw

*

required employers to continue to meet
money down
demands 0f the unions

rat hole.

a

Let

facts

^

been

again

and

been

failed

alwavs

to

pnTT1_

mnrp

thoroughly sifted

•

bv
men selected'bv the Pres
by men
selected by the Pres-

i\uw

of

factors)

that

and

neatedlv
peateaiy

nh„n1pfp f~P_

d

t

,

districts

industry

could

piant

the

gobbling

future

the

of

be

gram

savs

the Alexander Hamil-

attack

One

mates that

a

.

a

esti-

study

covering the nation

'"e nation

®nid

iti

billion

recent

is

decav

minimum moderniza-

f™8,1.8.™'
,

civic

on

year

'ah

for

the

over

siio

next

12

and to Persuade foreign nations
to reduce hidden subsidies to their

^th^more ^omogeneous markets
and with currencies which play a

present position.

dollar. If the United States is to

xne case oi xne ranroaas,

the

have

continue as ^ should, in view of
its fundamental strength to be
analysis places the imme- the premier banker of the free
diate burden of adjustment of our world and if the dollar is to con^

indus-

rpwnvrh

p,,it,irni

consistently

as

should

we

choice

never

!'!Ve'

our

'•

gp.

much prefer arrange-

would however, be a sad day

which

forces
forces

permitted

a

=Stle

to
to

them
them

settle

thing we may be
politically appointed
men

formal

+hJ

vprHirt
are

than

getting

is

with

come'UP

gf
much

reasonable

J™0™ Ca»ltal Flow Controls

baianee.0f-payments position on tinue, as it must, as the principal
the capital accounts.
trading and reserve currency of
So far as the net outflow of Jhe free world, we cannot begin

are

i

required

i;

.

Situation

to

then

do

'

,

is

urgently needed.

Other

There

Too

Cases,
of

are,

cases

power

j

get much

bers.

±oreign borrowing in their

mar-

^

ever
1I7U

4.

What

-

£

is

fully

and

all must

as we

national

.

courageous

mem-

of

'

Mliei

4--

1

capital to this country

as

in

pro-

because

of

suspicions

The most useful and effective

aroused way of dealing with the outflow

tivity, would shift in

our

favor

some extent

solution

later
of

the

-

A

+

some
same

one

•

m

"

rapidly besame
i

•

be

able' to

obtain

—in
:x

general,must be

Heavy

if at hoipe

Foreign Borrowings Here

and has met at least

or

abroad, should not be

„

3 drag °n„thte domestic economy.
lhe

collateral

and

important

t,

^

renewal project. The cleared area attention, has been foreign long- creased freedom for
is then offered at cost> or less, to term borrowing in our capital policy which would be
private

.

situation—or

not

we

tblrd of the cost of buying up and
recent m+ontfhs the aspect o advantage of this course, specific?
the movement of private capital ally from the standpoint of the
c eann£ the land chosen for a abroa(jj which has attracted most balance of payments, is the in1

-xx.

lm-

£or itself throuSh hi§her tax

revenues

sooner or
sort

jurisdictional industry




a

-

cni11f|pri

•

A-

goyern_

—« pwhabty be seitalefeating

might

y after a city has deter-

look- at this pay

portant is the fact that vari- coming much the
,

shou]d

tried to wait until the balance weighted against domestic investrealistic mined that a proposed project will of payments is less of a problem, ment by a tax structure which is.

mar-

as

face>

balance of payments favorably (to

.

'

legislature

and will take

silimfinn

and

n

t()

States

urban renewaF is by far the largest in

compe-

award their

t follows the rebuild-

no^ happen —the vestor in financing

the

can

than the

ha(,

are

lu aemahCl ana

more

ypt

immediately and to the comparative advantages of
railroad companies feel that
ah increasing extent over time), investment at home and in forthey must
to the de- most Projects-from $3 to $5 for and that they are a means of es- eign countries The decisions of
mands of the unions We ran every dollar of Federal or local tablishing or preserving a posi- private individuals and privateot tj^ unions. We can
Federal funds
avail- tion in forei^n markets which we business, concerning investments

iru

demand

to

would in normal

,

boundaries,

.

unless

h

•

where

monoDolistic unions havp vispH

tition

international

over

weeks, Congress will have to 'ful renewal program are spread there is.f the . broadly accurate so that an. improved, rate of doface the" facts of this situa- over a very wide area.
'
claim that • outflows of private mestic activity and a larger reThe
share of the nrivate in- caPhal affect other items in the tention of the profits of such ac-

0f

course,

numerable other

ket

the increase in commercial

only hope that the members

„

theh-

nnf

transportation system. Some also the nations two arges in- geems likely. And quite aside one of the-factors which recom' within; the .'next ; , few 'dustries, the benefits of a success- from
this general prohibition, mends a prompt cut in taxes here,

h°Pe

do

action designed to correct the
•

a^PerinS with the ability of indiv duais or companies to invest
" wh^e they will. This
0 say at, wit a view
jo our balance of payments prob-

.
Qf- a business district The concerning subsequent restraints of private capital from the United
two industries receiving the larg- which might be imposed on existwould be action taken to
government became owner of est direct benefits are construe- mS dollar holdings of foreigners, increase the attractiveness of melement
in
our
tion and retailing. Since these are ^en^f there were not widespread vestment at home as contrasted
f- ,XIAdm
cieineiii iii uuj. .
^
. ..
.- .v,
\ T .
avoidance of the control, which .with investment abroad. This is

for

the amount of work they
or

,

for thls country when the

nat-

one

earners

more

.

b^lt

toll

should, of

We

sort.

group1 of
a

^

baggage. They beprogram is considered to mental intereference be consid- motl"§ its flow abroad. Decisions
tah
be "only
t>
hfT
*r
infancy"
Uby
S
the ered . Even then practical judg-: m Uus area should rest in the
mfluence ^ U. S. Urban Renewal Administra^ L3 ^ d° ee°l marketPlaCe"

P more
practical effect It
wun more practical eltect. It

this

If

™

W?.tare,

of free

political

give

re-

pomtees final say in matters

sure:

,

arp

nvpr

^

But of

v

r,

re

iused to honor them. For

oral
ural

lesser international role than the

exporters, even to maintain our

-i

•

cap-

promoting products.
We shall ltselt lor the United States, no
Pr°bably need to do everything rnatter how effective such methwe can to Prom°te our exports ods may be in smaller countries

Around 600 American cities have
renewal programs of one kind or

unions have

ments

« a gradual upward trend of

fcreign borrowing continues,

"export mind-

V

years.

e™ment< take over the lines, nals and piers are also ncloded.

course,

more

United States investors. But even

even

making

ed," further improve our means of

from such bodies and that the

of

succeedta

the union Probably would be trial' medical and shopping. New suggest that only on the most kets, nor that our financial comac(^Dte<Tsussestions
content to have theunps
gov- SoW^ce^S'termi- extraordinary and extreme eirsbouU not be Just as
acceptea
suggestions quite
prnrnpn+ +aup
nnlc!
also included
cumstances, which we have not aggressive in trying to attract

railroad' coinbani

part,

do it ourselves

we

businessmen

case

litical

can

wc

though

substantially

them lesg &nd legg competi_ timated 10% are housing projects, tal markets, the dictates of our . lem, we should not continue to
^eve/r
bG
tive with foreign enterprises, replacing slums. The remainder general policy of sanctioning and;;^
disregard of po- j
th
of the railroads
Include many kinds of centers- Promoting the free flow of capital remove rem^ iT°^aPles to

<wh?

accused

again

tried—and

surrounding this dispute

have

that

*

and

on issues of invest-

ment character have made foreign
bonds increasingly attractive to

private capital is concerned,
whether by way of direct invest+uan uppn
ment °r portfolio investment
P
another under way embracing abroad, or by way of foreign
Pam6S g°mg' 3nd t0 make L200 individual projects. An es- long-term borrowing in our capihave

forget that the

one

no

..f-

v

A N0W

funds;

higher yields

ha* issues control, whether by
oub,t;i J-iiuubbiy.
financing and insuring exports,; way of legal restrictions, or
The business of replacing slum and provide further government
.0®uad^ nnf
housing, and rebuilding'decrepit assistance in finding markets and
•
'
IJnitpH
qtato-

Government

of the companies are

s^ek

stabiliza-

otherwise, to

or

trade route. And it is unlikely

Chippy. TnHnqtrv?

The coming.

nrapfippc: thpmsplvps mnqf

creditors
creauors

:i

arise

practices.

commodity

solve our problem for us by the

Urban Renewal

up

,

Sldy be regarded

but

same

wages>

or

tion agreements

twice as many doJlars in. a
governmental sub- year as the present defense pro-

higher

even

Nor

amount

course

way

owners

or

may

meiiiueib may
opportunity to do it

an

—and still draw the

railrnnHc;
railroads

an

of

are

year

figurative

a

have

of doubtful certainty.

are

members

union

ULI1C1

j

that

debt

even

other

now

•

impaired

seriously

so

Europe

,

p
warrant for * fugicuiib

continue

who

men

1

v

same wages.

there any

is

con-

.-

-

.

depend tinue to draw the

living upon interest Nor

railroad

from
in

j-i

-j•

,

who di- for them to do, and to

indirectly

or

for their

,,

,

,

and women,

men
•

»

,

.

,

~ancl ao .^nothing about all. industrial products.
larger amounts of securities than
^is except to make it worse. We cannot rely on the rest of any other capital market in the
™at
way
leads
to economic
the world, whether by inflation «ivdc° Xe"
m
decay
and
ultimately
to or cost-price increases in Western attractive place for foreigners to

investors

builders

busi-

'

market. During 1962 United States

monetary
provided
by such action on the fiscal front.

investors purchased nearly $1 bil- This is not advocacy of higher
lion of new foreign dollar bonds, interest rates or lessened liquidity
a&reemS to erect approved stiuc- and the Department of Commerce in such terms as would offset the

neEg

com

ies

iyi

,

tures.

^

^

^

_

,

p

_.

.has; estimated; that,

during

the expansionary..effects -of

a

tax

re-

Volume

Number

198

6286

.

.

The Commercial

.

and Financial Chronicle

(455)
duction

the

objective

suggest

of stimulating domestic

and thwart

economic

do

"As

tax

of

credit

that

"We

terest

to

the

recognize
in¬

conditions

rise in

may

tax cut would

dom

also

must

these

rates

sav¬

Jacobsson

Per

to market forces.
a

supply of

late

under

private
expand,

also

response

In other words,

give greater free¬

authorities

their

in

credit policy which could be used
to

that there would be

ensure

rigid

no

In

the

time, it makes it

allow

to

which

at

rate of

the

it

would

have

of

area

capital outflows

public

for

the individual to

it

account

structive

action,

advocate

is

difficult

suggest con¬

other

than

stronger

even

pursuit

of

the

costs

of

larger share of

the

de¬

common

the

less

developed countries. The

complex issues of diplomacy, mili¬
tary collaboration and economic
which

involved

are

hard to disentangle and eval¬

uate from outside the government.

It

has

seemed

increasingly clear,

however,

that

World

associates

our

Free

limits

that greater freedom with respect

capacity and interest only if

to

cut

the

defenses

outflows
and

against
short

of

damaging

term

-

capital,

perhaps lessen the attractive¬
of

ness

of

source

the

capital markets as

our

,

foreign borrowing.

absence

ment

of

fiscal

of

and

combination

a

monetary

of

policy,

well be faced with the

may

In

develop¬

prompt

such

a

we

neces¬

fore,

international

our

position.

I digress here, for

ment, to
such

Deficit-Financing

a

that in referring to

say

I

course

ing to

the

mo¬

a

not succumb¬

am

argument, which

was

presented at the November meet¬

ing

of

the

American

by

monetary

solely)

policy,

and

is

It
in

also

Reserve

Banksf

one

veighed

The advocate
approach

way

against

those

who

in¬

com¬

partmentalize the balance of
ments

blame

and

particular

one

the

pay¬

deficit

on

compartment

another. Without

of

or

entering into

cost-price policy

international

our

position,

attempts to force all of
ments

difficulties,

as

sluggish growth rate and
born unemployment
the

monetary

have

no

and

our

well

on

pay¬

as

our

stub¬

our

problem, into

compartment.

I

has
of

helped to prolong the .period
deficits.

This

has

been

cal¬

a

the

is

monetary

international
have

policy

situa¬

doubt

no

alone

that

not

was

and is not the best answer to

our

balance of payments problem.
could be if

had to take "crisis

we

action," neglecting all other
siderations

than

ination

the

ments

have
for

of

the

the

time

quick

balance

deficit, but

more

It

elim¬

of

pay¬

don't.

we

and

con¬

the/

orderly and

We

resources

more

real¬

istic action, giving greater em¬
phasis by way of monetary policy
to

international

our

greater

emphasis

policy too

ur

and

grappling

with

our

by

position,

way

domestic
more

of

tax

situation,
vigorously

cost-price problems.

To

+ED.

NOTE:

See

Chronicle's

continuing

adverse

on

"Root

Cause

of




readily

more

at

home

our

and

per¬

abroad

to the dollar.

The

unanimous

complete

bar

amination. Nor does it

sible

to the

of

the

government,

policy

and

cost-price

policy. There should be

insur¬

no

difficulty in formulat¬

monetary policy which,, com¬

bined

with

fiscal

policy,

be

pos¬

of

objectives being sought by ex¬
ploration ' in space, and such a
looks in vain for

a

help.

standing

the

of

nations.

not of much

are

One group labels racing to

land

man

a

lunacy.

the

on

moon

Another

lunar

as

defends

group

stimulating the program on the grounds that
continue to it embraces other national inter¬

more

could

domestic expansion
effective

more

the

one

box-score giv¬

a

And the scientists

a

seem

just what constitutes being second
in space. There are such a
variety

icy,

ing

nor

re-ex¬

layman to determine

ing

mountable

rigid

variety of achievements, that

role

fiscal

approval

to

here, must include monetary pol¬

in

terms

ests and goals and that it is only

part

significant

of

long

range

and

have

we

about

it.

proved to be

with

sales

of

limit to

even

a

relatively flexible instrument and
be

can

fitted

situation

precision,
sion

to

with

to

erval

is

shifting

given

now

relaxation,

degree

while

of

expan¬

an

boost

a

by fiscal

tempering

ex¬

which may be born of such

cesses

deeper

a

Firming Government Spending
arguments for

over

of

term

outlook

change in

a

than

with

their

their

political

particular

ests,

leanings,

scientific

whether they

or

accord

economic

inter¬
talking

are

scientific

use

and

resources

or

of

our

We want to

manpower.

learn the secrets of the solar sys¬

sell

buy,

we

bringing

are

the

with

to

most

tre¬

overseas

increas¬

us an

which

a currency

widely

the

more

with

investments

the
which

favor. We

our

ability

is

in

uncertain,

nation,

scientists

talking

and

is in

solvent

a

ing income, with

are

There is

encouraging fact is that the long-

is sometimes hard to tell whether

our

The

understanding

objectively about the best

endorse
rec¬

program,

increases

people and
foreign holders of dollars. The

of

contemporary time, for acquiring
mendous

economic fundamental nature of matter. It

the

some

support

massive

and

because it involves the
apprehen¬
sion points of our own

abroad

Monetary policy is

continuing deficits
gold

are approaching that
though the time in-

competitive

far.

our

been

this way. We

limit,

ward

thus

of

have

we

financing the deficit in

system. A third group brings for¬
a

short-fall

foreign liabilities.

our

(short

certainly" and long
perhaps) than it has been

the

able to finance

a

has

stubborn than

because

response,

in

something

problem

more

live with

are

term

the

anticipated. We have been able

we

to

done

But

plans for exploration of the solar

term

have

pline of the balance of
payments,

of international capital movements

Clay Com¬
it would
a

kind

be

of

factor

swing factor

an

in

rather

from

grow

only

out

pay

loans

into

compromise

individual

further

increases

used

of

all

the currencies in world trade and
which is the keystone of the free
world's
task

monetary

is

term

to

system.

survive

that

so

favors

interest payments on the Federal

has

of

services,

capi¬

And

so

balance-of-payless

much

improvement in the balance of
the percentage

of

in space

by

increases

in

by

nebulous,

certain,

and

by

complishments of
There

year.

countries

of

sources

and

to

counsel

security

to

the

This

one,

rope

or

a

foreign

our

aid.

This
our

political

our

almighty

so

confrontation

is

a

which tends to present

troops

either,

or;

of

say,

from

a

either

division
Eu¬

western

improvement

an

or

for

sacrificing

not

withdrawal,
our

in

up

economic

position
dollar.

indeed,

time,

national

of

to

in

our

balance of payments. Rather, it is
a

question

and

of

national

priorities

relative advantages

sibilities.

If

we

and pos¬
the

allow

status

of the dollar to be further under¬

mined

and

the

international
be thus
we

may

equal
nomic

monetary

our

of

the

to

the

an

un¬

military

de¬

world and of its

development,

to

the

system

continue to bear

made less than

tion

of

our

we

eco¬

shall have

best contribu¬

goals of security

political position

we

and

To

further,

go

that

this score,

on

apd legislative
and

should

there

to

be

suggest

rigorous

a

re-examination of all items in the

including

military

and

the

end

expenditures,

space

to

that whatever deficit

develops in

fiscal 1964 will be

larger than

is

absolutely

the

no

brings

necessary,

unofficial

observer

face

to

face with questions which he can¬
not

to

attempt

that

it

duce

might

be

abroad, at least if
could

associates
a1

as¬

intimated

possible to

military

our

assume

with

answer

I have already

surance.

re¬

expenditures
allies and

our

be

brought

to

equitable share of

more

the joint burden. And doubts per¬

sist

in

mariy

political, that
ing

vitation

our

of

we

the

in

the

Our

short-,,

realize the

may

long-term.

case

are an

and

mixed

of

not

all

may

in¬
be

priorities.

The

space

unanimous

past, and

Basic

Remedy

for

balance

of

payments

of

be

the

for

second

in

the

decade

of

having had almost

support

on

substantial

that

as

in

and

gress

in general,

program,

is defended

the

in

the

the

the ground that

any

reduction

for

funds
the

same

United
space

the

in

the

fiscal
as

States

re¬

1964,

deciding
will

of order

seeking to satisfy

be

policy,

in¬

To

proach

to

an

it must be admitted that mastery
of

we

all

are

cost-price relationships is most

important in terms of sustainable
economic

growth, reduced

ployment,

and

unem¬

approach

an

to

the

the

over

third

leg

long

of

This is

run.

three-legged

a

stool which won't stand up
it.

out

some

We

complicated by the

progress,

overhanging

making

be

to

seem

with¬

threats

job

to

se¬

curity of those now employed and
who

those

will

labor force in

be

entering

the

increasing numbers,

by the technical advances
international

competitive

position is to be maintained. There
still

are

part of this progress and which

yet infect the whole effort.
done little if anything

may

have

We

in those

where past efforts

areas

to preserve

marginal producers in

agriculture

the

weakened

in

stance

time.

We

rying to say when
safer

a

and

If

nomic
rate

are

a

period

a

by

policy,

were

round

of

vances

and

in

the

financial

foresee

can

trading,

governmental rela¬

tionships which underlie the bal¬
ance

of payments.

The important

thing is to be making substantial
progress in the

to

have

warrant

right direction and

firm

a

enough policy to

confidence

that

progress

will be continued.
address by

*An

ing

the

of

Finance

Mr. Sproul at a meet¬
of Accounting and

Division
the

of

American

Petroleum

Pinkus Joins

M. A. Schapiro
A.

Elliott

retired

as

Pinkus,

of

M.

eco¬

improved

an

-

be

general

of

cost-price
an

the

dollar

and

Inc.,

1

M

h

of

tional

the

its
be

States

my

that

as

to

in

tax

and

mergers

valuations.
Mr.

Pinkus

the

served

-

years,

analysis

concerning the balis

New

planning,

the

lance-of-payments position of the
United

ttan

for

35

A. Elliott Pinkus

Conclusion
conclusion

Co.,
Chase

a

City,

tutions

gains

position

payments

a n

banking insti¬

ad¬

infla¬

in

&

consultant

jeopardized if not lost.

and argument

just

Scha¬

A.

York

monetary

and

revival of

-

has

Plaza,

growth, brought

to result in another

the

who

Vice-President of First

piro

increased

fiscal

a

'»,

bank

The

In¬

stitute, San Francisco, Calif.

which have been made in the de¬

would

posi¬

one

complicated

and

in which the

psychology,

tionary

balance

reach

efficient, National City Bank, has joined
competitive the investment banking firm of

and

economic

about

fense

may

the possible shifts which
may oc¬
cur

luxury.

of

activity

of

no

over

avoid

tolerable

we

more

tion, because

should

and

can

more
our

period

a

inefficient

have

industry,

and

handicapped
and

balance

our

strategically placed forces

in labor which do not seem to be
a

fronts,

(auto¬

mation) which must be embraced
our

balance-

of payments can be remedied

equilibrium in the balance of pay¬
ments

policy and

our

reasonably successful

three

which I have advocated,

economy

on

a

of-payments deficits.

on

this tri-partite <ap¬
improved domestic

in

Finally,

demands

now

monetary

cost-price policy

If

Costs Down

Keeping

Surely,

throughout
sixties.

earth.

on

sense

Con¬

in

country

in

that survival

sure

atom, and we

wants.

rapidly increas¬

waste

to

another

quarters,

expenditures

space

quest

seek.

At the base of all remedies
the

further

a

jeopardized, in order that

share

fense of

workings

be

better

a

balance

our

if

budget,

tighening

not

the

diverted

supply other than the

past

military
is

be

by executive

ac¬

action.

aid-receiving

States.

is

It

to

of

terminal

single budget

a

soon,

earnings

for

authority for

should

other

change

been
seem

without

they,

ex¬

have
which

point, which detract from the

indicate, and

may

that

proposals

obligational

expenditures

fact

expenditures,

reductions

well

foreign

the

other

seem

future

of

reason

firming of position

in turn,

(and for

debt), has suffered in the public
mind

newly committed tied loans might
permit

and

low¬

movement

than

coming fis¬
defense

are

It

need

and

avoid

for exploration

ments figures are concerned, tied

payments

to

government

during the

We

want to learn the secrets

we

The

time

levels.

contributed

in

except for

year,

offset

have

pro¬

tem,

executive

government

spending

international

current

the

of

cal

which

as

present and

concern over

tends

loans, which
position with re¬

and

has been weakened

—

spective budgetary deficits.

spect to the maximum freedom of

goods,

the

of

cut—corporate and

of

tied
our

acceptance

tax

a

branch

of

the

over

payments

minimum

to

drifted

general

to

dista nt

stimulate

being strenously debated.

are

need for

by

to

resolve

year

the

stretched out

are

ered

in

policy

general

especially when terms

interest

and

bal¬

our

In economic terms it

year.

a

payments, and has shown

tendency to

a

article

by
Payments
Imbalance Is Easy Money," Feb. 14,
1963,
pp. 5, 37, 38.
Exter

be

borne, and confidence in

would
John

would

than

more

relaxation.

-

export of capital. It has become

itself in terms of

and

the

special

a

domestic

also

to

which

false

I

public

findings and
of

culated risk, taken in the light of
all of the factors in a
complex
tion.

exports)

increased

increased

a

We

economy.

good deal about the disci¬

a

cal

severe

United States during the
of heavy payments deficits

imports

be

even

terms

domestic
talked

orating man's condition

policy—the so-called'easy money
policy—which has been followed
the

might

payments

-

con¬

The

our

eign aid

United

years

if

of

-

of

expenditures abroad. For¬

of

doubt that the monetary

in

balance

(some

equivalent

coordinated attack by way of fis¬

to

and

in

press

particular time,

a

want to learn the secrets of ameli¬

effects

policy)

tinuous

not moderated

the

subordinate to our international
political policies and military pro¬
grams
nor
to
demands of the

and

loans

(tax

ficulties which

not

of

reduction

domestic economy, minimizes

policy

the

as

expected will lead to

far

fiscal

are

are

people under the

of conditions at

economic growth, even those dif¬

past

of the inside of the

extended argument, I suggest that
his
approach compartmentalizes

of

in

of

of

,

feelings

growth of the economy have been

tal,

the

pf

the

fiscal

an

our

ex¬

vigorously

possible

program,

to

Federal

ac¬

rate

decisions

and

aid

future,

our

military

be

the

mittee with respect to our foreign

that the only way to stop our pay¬
the domestic assets of

our

be interpreted.)

general

ments deficit is to

stop increasing

reduce

thus far, in real balance-

can

a

this

common

appointing, insofar
figures

of

not

contribu¬

(The improvement

area

than

(if

improved

an

and

of-payment terms, has been dis¬

ance

primarily

and

to

we

however,
masses

increase in economic

an

tivity

contribute to

again, there¬

to

abroad

pursued.

Petroleum

caused

efforts

penditures

respond

own

be urged

can

that

Institute, that payments of deficits
are

func¬

With

in

responsibility,

our

ommendations

Absolves

May

on

share of the

this

will

of their

down

tions. It

sity of taking monetary action, by

itself, to defend

better

Congresses

fense, including economic aid to

the

monetary policy could stiffen

the

would provide a protective shield

assume a

the

somewhat."

rise

to

is

Allies to

It

borrow

States

tioning of the domestic economy.

formance

is in this sort of economic climate

to

to

United

of efforts to persuade our Western

are

wishes,

policy alone, is too

on

cit. At the

possible for the government, if it
interest

done

Reducing Foreign Aid Is Difficult

integration

so

be

to

doctrine for practical use.

a

inflationary financing of the defi¬
same

needs

with monetary

should

and

can

we

stimu¬

fully absorbed."

more

the

as

added:

will

available

ings will be
And

activity in¬

reductions,

demands

the

and

investment

in response to the

creases

lus

Dillon has

As Secretary

growth.
said:

that

whatever

23

a

top

na¬

priority should be given to

correction; that it should not
treated as something wholly

joined
Bank

the
in

having

former National

1928.

He

is

well

City

known

in tax and banking circles.
M.

A.

Schapiro & Co., Inc. are

underwriters, brokers and dealers
in bank stocks, and are
of Bank

publishers,

Stock Quarterly.

tm***t*rnMmmmmmm* .:

24

The Commercial and Financial Chronicle

(456)

that

IBA Challenges Saxon on

such

Obligation is not

an

tions

of

Constitution

our

authorities).
ties it is

clear

not become

Continued from page
'

■

indicated

12

-

u

that several recent

...

rulings by the

Comptroller of the Currency have

erroneously
tain

bond

hirtdine

issues

Sincerely

were

political

a

state

a

subdivision"

Appendix A, attached

r

,

f

„

th

the

do

the

Building

Certain Revenue

Commission,

such

the

Penn¬

sylvania General State Authority,

able

the

Were

Virginia

and -the

the

bonds

in

question
bonds

not

were

ligations of

state

a

"of

Authority

payable solely from

without

the

from

municipalities
to become

bonds

of

ceeds

will

revenue

the

Authority, including,
limitation, (i) pay-

local school bonds purchased

on

the

sale

of

local school bonds,
of

an-

principal

of

obligations

par-

Fund,

(iii) payments
interest

and

frqm the

(iv)

the

prosuch

any

transferred

Authority

causes

general o.b-

the

on

to

the

Literary
of

proceeds

the

in

and

fail to perceive how it

to

Deal

in

the renting

and

Thursday, August 1, 1963

itself

(1)

Bonds

of ithevfIllinois

mental

Public

they

Building Commission

several'National

"We

separate

govern-

merely

because

izes

such

building

public

to issue

from

the

°

derived

operation, management
,

—o

that 'The rentals contracted to be

the

Au-

thority underleases entered

upon

paid

....

.

,

.

,

of

bidding

counsel

refrained

of these

some

on

Furthermore, in at least
the

in

bonds

question '

from

and

of the buildings or other

use

one

case,

were

spe-

sion, which

revenues

payments

received

under

(2)

and

'fhp

Snnrpme

state in question

that

the

bonds

Court

of

the

or

not

general

"revenue

municipalities

which

merits

special

the

made

-bonds"

"all

issuance

tute

the

faith

fund.1,

anv

State

division

of any

or

pal and interest thereon

iif subdivision

thereof

v.

not an indebtedness of the

mission 'or

rule

property of such commission." The

is

contrarv

IoccqI

to

the

nf

mnonuttf

accented

a' claim

against

Act further nrovides that

Bin form

faith
IdlUl

of

the

pledged'."
der the

is

issued

un-

provisions of this chapter

debt

or

hereby

However, the Act also

shall not be deemed
a

good

the

which
State

pr0yides that "Bonds

of

the

constitute

to

State

of

Georgia

pledge of the credit of this

a

state,

but

payable

such

from

orovided
provided

nereaner

shall

bonds

solely

hereafter

for
ior

be

fund

the

and
the
ana?ine

bonds sbali n?
V c°nt™senU
Y YT
leVy °r
to pledge a"y fprm of +taxatlpn
whatsoever therefore
to make

and
dllQ

of any po-

or

or

Official

Tf'

the

of

Virginia

Authority

a

state

or

are

Public
revenue

political subdivision

a

thereof because they are
payable

only^from the funds of the

various projects

Statement

Continues

a

The official statement for bonds

(rfX^7R™riirf'r

^oriW^OT States
states
•*

that

The Au-

that

•

tL fntoest ^°rlty '?

or

The-Au

Statf but an ln"

separate entity cannot pledge the
credit of the State. These bonds
shall not be deemed to constitute

debt

a
or

the

of

State

of

Georgia

pledge ;0f the credit

a

State

but

such

bonds

of

the

shall

be

Au- payable solely from the rents
in' accordance >with
agreement entered

^ni° *f tween the^ Authonty,

into

re-

the
be-

.

.

.

the State

„

,

_

Roads

wealth, acting on behalf oflhe
The Georgia Rural
Commonwealth. The Act authorRoads Aulzes the Authority to issue bonds thority Act authorizes the Authority
.

the

and to secure the payment of such to issue bonds (which are
bonds by pledge of its revenues scribed in Section 95-2615 of

bond

no

,...

Authority

com-

(e) of section 1.3 of the proposed
anH

struct and equip

in

able solely from the
obligation of pledged to pay the same and
political sub- shaH state on their face that it is

"general

of

princi-.and to lease auah Projects to the w fgima or of any other political -and the State Highway Department."
are payDepartment of Property and Sup- subdivision thereof.
revenues phes and the Department of PubConsequently, while the rental
(4) Georgia Rural

Consequently, the proposed defof

State

the body thereof that the

pay-

'

fnition

General

to

obligations of the State, for
payment

Authority Act of 1949 authorizes
the Authority to acquire, con- taxation and they are not obliga- lease

of

shall -recite

bonds

<

or a

bonds, not general obligations of

The Pennsylvania General State

provides

and

School

Authority

The Act soecifi-

specifically held caliy ,;authorizes the

were

obligations of the issuer; or lof the * that
to

therein

space

Pennsylvania

lessee

or

boX"

Bonds

> any

cifically referred to in the auth- leases or other construction for
prizing statute as "revenue bonds" 'the use of the facilities, buildings

the

a deb^ . any appropriation for the paypledge ment, and all such bonds shall

pledged to the payment

on such

meanmg °f the Co stitu ion.

shall include

Au-

subdivision thereof is,
principal of

Jo constitute an indebtedness
the muntcipahties^ within ^the

issues.')facilities acquired by the commis-

the

of

the
Hie

ueiUiei

the Commonwealth

ft

,

by

pursuant to this Act shall consti-

w®"1" nor ^ .te.xlng power of

18

"

bf°me general obligations of

,

a

;

Uldl

tne^Commission
„

advice

*

icommissions;^®:
not^erateto ^ ^Jitical
bonds issued by

revenues

become

to

r

bon1is

that

^^ommonweaitn

Clietl

section

tnat

authorized

of the fa^h or1cf^d!t„oiLt?le C°m~ contain recitals on their face covmonwealtft and that all bonds of ering substantially- the foregoing
the Authority shall contain on the provisions of this section."
face
a
thf
effect that neither

of the

use

that

conciuue

"revenue bonds" payable

solely from the

on

conclude

we

Building Commission Act author-

of

Banks

be said

'Pnmmiacinn'a' Kinldincfc

banks

underwrite

a

rent for the

pay

aect'°" 7

bonds issued by the

entity,

-

is

party to the rental contracts and

bondlThe luthor-'I?™h'6 .of..sucb

case we

can

•

-

t' L "^UDow^

municipalities become

tlie

liable for

»

Commission,

ob-;

bonds is also indicated by the fact

that

Banks

shall be provided by the

as

facilities

rental. As in the Loomis

Doubt of the

Currency to authorize
deal

o/

Thereof Eligible for.Na-

tional

Fund,

*

do not obligate themselves to Pay
the principal or interest on he
bonds but only the stipulated

Subdivi-

Political

*

-

Fund

General, Obligations
or

*

•

.
"Municipalities
.tahT
leasing

Bonds .Pay-

Special

a

Underwrite.

political

a

v♦

Comp-

by

the
Currency

of the

Comptroller

the

sion

were

Rulings

From

State

a

payable

;

general

or

subdivision thereof.

authority

Au¬

concludes

and

special fund

a

and

School

Georgia >Rural

revenue

from

only

Public

Authority)

issuer

r:J>.

the

ments of principal of and interest

circumstance

derived

be

-

of

that

.v

but

by

ligations of debt of those munici- sale of any such obligations, and
Palities within the purview of the (v) any moneys transferred to
Constitution."
the Authority from the Literary

Saxon

July 26, 1963

the

to

four

J.

Currency

trailer

to

fact

in

James

Hon.

to

m

Objections

actually

W

Letter

rul¬

Roads

u:

with respect to

involved in

thority,
.

contends,

ticipating

ings (bonds of the Illinois Public

bonds

•"»

be

funds of the

general obligations of

nual rentals pledged by the

APPENDIX A

part of this letter, summar¬

a

izes the facts

hV.,.

bonds

the

.

"""

underwrite.
as

yours,

or

eligible

that

that the bulk of the

'

AMES

AMYAS

for National Banks to deal in and

.V,.

lant
•

shall

issued

mains as to whether- as appe1' by the Authority, (ii) the

of the four

some

r

"

general obligations of

on

? „.g_.?
issues referred to above),

that'*cer-

concluded

revenue

from

:rom

(citing

the issuer, but the question re-

rpfrninin*

their

by

bonds

these authori-

From

,

cities, and towns in Virginia. The

an

within the proscrip-

indebtedness

.

payments by the State of Georgia
to

the

tion

sued

de-

nue

the

of

a

Authority

of

the

are

bonds

by the Authority

bonds, not general
state

obliga-f

an

State, -the

are

is-

reve-

obligationsj

political subdivision,

or

cause

that
the

taxing

and

(ii)

of

power

bonds payable from

'not

secured

credit

the -issuer

it would include

and

bv

a

special fund 'that

the

taxing

of

-

the

„

it shall be the duty of the
to

establish

of any and all buildings or

use

space'' therein
Conclusions

-v

(1) Section 1.4 of the proposed
rule
the

should'be
law

does

owned

and

other

or

°Per^tion

facilities

operated by the

to

pay the maintenance and operat-

the'ing costs and to jpay the accruing
'Comptroller
of
the
Currency interest ahd retire the bonds at
power to authorize banks to-deal maturity
and to make all
>yV in or underwrite securities.
-1*'m-ents to the accounts created by
grant

*

its

of

to'

^

,

.

Georgia and the State Highway
Department. The bonds are payable from and secured by a pledge
of rentals to be received by the
Authority from the State and the
facilities and State Highway Department under
payment of the the terms of such lease, together
interest on its with all other available revenues
lease provides of the Anthority.-Such rentals are

Properties and the
P«neipal of and
obligations.
The
remals shall be payable only
out of the current revenues of the

com-

mission, sufficient at all times

deleted- because

not

fix

and

^

©cts for the purpose of providing
for the payment of tne expenses
°/ the Authority, the construetion> improvement, repair, equipPmg, furnishing maintaining and

to debt.Tt is specified

rates, rentals, fees and charges for
"the

'

.

as

commission

full "faith

power

issuer.

statutory

any

limitation

revenue

a

charge

the

on

appropriated

Commonwealth. The Act specifi-

the

the

Georgia

lease

bonds

of

agreement
the

obligations

annually

State

High-

Legislature,

which

and

Authority

of

the

not

are

State

of

Georgia,
In

each

f

th

f

ferr€d 10 above the b0ndS involved

rpv^G
XieatTont
of
obUgat,ons of a
a

subdivision

funds

Department of Georgia by

way

ually provides that the Authority

to

the

bQ01

state

nolftira

or

state or polltlcal

thereof

issuer did not have the
power
taxation and any nhiif^tinn
obligation

^r "tiries "LTrll
other

^

^

i

because; the

#

of)
b:
ori

f.

payments to a special
shalLhave no power to pledge the appropriation is required by parafundj
v---^credit.'1' or the taxmff
of the issuer of the bonds did
of the
noti
obligation of anv State or of anv
provides in substance that rraht; or the taxing power of the graph;.IV of Section IX of Article
k
fh
K
,
"
i
political SSS ' whenever ® municipal corporation Commonwealth or political sub- VII of the Constitution of Georgia,
th^tttv*
be included it should be as fol- havms taxing power enters into a division thereof, that the obliga- to be not less than the total Motor
"Lf6 e"tlty makl"g SUCh|
lows:
°
lease with a public building com- tlons or debts of the Authority Fuel Taxes for the immediately Payments.
'
.
mission the municipality shall en- sba11 not be deemed to be obli- preceding fiscal
year,
less
the
If "an obligation payable from;
e *Lrfse general obligation act an o^rdinaiiee> 'or resolution nations of the Commonwealth or amount of
refunds, rebates and a
special fund -when the full,
'Pplitic^l providing for the levy Of a direct Pohkcal subdivisions thereof, and collection costs authorized by law. faith and credit of a state or
sub ivision thereof
any!
ipeans^an ob- annuaj ^ax sufficient to pay the that neither the Commonwealth Also, paragraph 1(a) of Section political subdivision thereof is!
''
^rf1SST
Sany
1
°l annual rental r under the lease "or ' ^ Political: subdivision VI of Article VII of the Constitu-Vobligated for payments into thd
"tical
subdivision
thereof when it becomes due and pay- thereof shall be liable for the tion of Georgia, as amended by an fund of amounts which will h3
If

(2)

definition
ucmuuuxi

a
d

any
b«nudiu

of
ui

'^prieral

bond resolution. Section 18 of
-.-...v,,

.

^

r>nwer

oronK

Tir

rv

—

n

a

,

,

t

,

™

J?.e^

credit and taxing power of the is-

'

able.

est

Supreme Court

of
V1

•

Finally,
that

the

probably

you

membership

of

Bankers

Association

America

includes

about

vestment

banking firms Of which

100

Some

of

are

785

commercial

these

member

of

revenue

underwrite

bonds,

vestment

opposed

although the In-

Bankers
to

However,

such

I

Association
an

banks which

that

members

are

with

agree

going comments in this

the

many

of

the

fore-

letter

(as

"The

income

derived

>

>

'■




.

i

not

has

taxing

no

gation

proceeds and
comparable

statutory

revenue

of

political subdivision

because

do

not

of

the

the, Authority
authority and the

constitute

an

obli-

Commonwealth

or

their

provisions

each

general

of

Virginia Public

School

or

under
to this

tween
or

„

funds
bonds

shall include in

to

to

purchase

issued

act

a

contracts

entered

into

now

pursu-

paragraph by and be-

state

deoartment,

institution

and

agency

state

any

au-

contracts

authority for bonds

other

obligations

issued

or

by

such authority. The Georgia
Supreme Court in passing on the

any

thority Act of 1962 authorizes the

school

lease

hereafter

ant

any

Virginia Public School Au-

Authority to issue bonds
vide

1960

appropriations

thority, which said lease

Authority

.

the

sufficient to satisfy the pavments required to be made in each

constitute

The

at

sums

year

Pennsylvania,
(3)

have held under

we

are

general obligations

or a

bonds

property

purchased with the bonds

by

pro-

local

validity of the Act in September,
1955 (89 S. E. 2nd 204) stated
"the

that

counties,

Rural

Roads

Au-

thority Act provides that the State

sufficient

quired

to

provide

payments

for

in

with
the
obligation"
"general obligation of

political

all

'

:i

.1

•

-

>

-

'

•

subdivision

were

state

a

,

y

';

r,."i
r -

^

v
,

ir.

■

|if;ri

.

j?-.15,-q

.

q

B • ■ 1 s'

v'.: V* •: :

or1

thereof",

within the meaning of paragraph!
7 of R. S. 5136, Congress would

have amended paragraph 7
of R. S. 5136 specifically to except
from the limitations and restric-

not

tions therein against bank dealing
and underwriting bonds issued
by
local housing
cured by
net

rental

authorities

and

se-

annual pledge of the

an

of

revenues

housing authority and
contributions

the
an

contract

local

annual

with

the

Public Housing Administration of
the

United

States

obligating
-

PHA unconditionally

;

.;
-

.

..

re-|

connection!

w

to

pay

!

".T
'•

Authority

state
thereof
a

and

ratified

general election, provides that the

as fol-

revenues

from

amendment

the Pennyslvania Gen-

obligation, then, is to be

paid solely from the

'
<

state

/I bonds,

me^s to the Commission under

-i'

;•

m '

'

.

rerdaI agreements, stating
'l°ws (Pages 73-74):

inter-

A^ain> it is apparent that bonds General Assembly

eral

,.s
n 0
municipalities making pay-

'

•

'

or

obligations.

I

■>

■

is

amendment,

believe

Association

municipal

of the

•

issued by

of

^V.
7? issued
U1 in^ ommis-

JJ.

banks.

would

to

.e
.

banks

lUl^1S

co7?wn«sion

\

in-

undoubtedly support a proposal to amend the law to permit
banks

wg

such

on

Illinois

fxrei-yAaamowslci v.

»wc

In-

vestment

about

p

know
the

payment of principal of

"

-

The

suer'

-

1; >.

.

t ; f

»'.2 j
5

>■

*

IbKj I

• •

.

-

-.

'

X

.f'i

.

1

the
an-

Volume

contributions

nual

Number 6286

198

amounts

of

■

which will be sufficient to pay

principal

interest

and

when

bonds

on

The

due.

special fund for which the credit

of the United

the

when

obligation

unconditional

is

a

and

term
state

sion

except

faith

specifically

limita¬

restrictions and

the

from

to

tions therein a bond payable from

"general
of

or

include

found it necessary to amend para¬

7

pledged

was

7

indicates

already

ex¬

of

any

political subdivi¬

is

intended

not

to

obligation payable only

an

special fund when the full

a

and

of

credit

some

other

>

is obligated for payments

entity
into

clearly that the

obligation

any

thereof"

from

graph

paragraph

States"

of the United States for such con¬

The fact that Congress

States

cepted "obligations of the United

has .been held to pledge the faith

tributions.

The Commercial and Financial Chronicle

.

the

of the PHA to pay the annual con¬

tributions

.

.

including' electronics,
concrete
most

unsecured,

the

capital

facilities,

For Small-Medium Business
be covered after-taxes by at least

cost

percentage
ments

should

offering
to

less.

public

A

stock

company's

million

$1

The

.

place¬

larger

of

be

the

of

raise

expense.

$3 million

to

where these rules of thumb

cases

to

give

up

small

a

from

buys

of

to

15%, including the

printing,

accounting

legal

the in¬

and

expenses,

banker's

vestment

expenses,

underwriting

charge (underwriter's spread). As

financings

in

increase

the

size,

out-of-pocket costs decrease

per¬

centagewise, but there still would
be

impressive advantage to the

an

private placement from the stand¬

point

of

out-of-pocket

might also add that
involved

with

placement

are

of

usually much larger

A

complicated

more

life

recently

pany

insurance

told

placement

same

the

legal
have

not

public

added

unsecured,

be sound

including

the

creating

distribution,

etc.

has the princioal ob¬

jective of strengthening the
poration's
feasible

equity

to

base.

incur

It

debt

cor¬

not

is

without

equity and the larger the equity

cushion,

the

leewav

more

there

is for debt assumption. I will dis¬

this further.

cuss

Questions

usually

debt

placements,

what

minimum

Any

be

able

long-term

ask

and

secondly

is

desired?

solid

a

earn¬

year«

to

more

qualify
debt.

unsecured

for
Sur¬

prisingly enough, placements
being made for amounts
as

$100,000.

vate

It

nomic for
the

However,

placements

$500,000.

is

loan.

whose

stock

pri¬

most

debt

exceed

generally

uneco¬

make

investigation for
Many
may

attractive for
excellent

of

are

small

as

institution to

an

necessary

small

a

comnanies

be

quite

un¬

nublic offering are

a

candidates

for

private

placements since while thev have
an

earnings record, they

engaged
ness.,

ing

in

Past

than

unromantie

busi¬

and

prospective

earn¬

the

are

net

more

important

worth

Company but net worth is
in

anv

be

may

an

power

loan.

Most

certain

a

level.

be limitations

out

in

cash

on

may

dividends.

restrictions

those

are

that

normally would be adopted

by

well-run business. In review¬

a

ing

for

a case

the

private placement,

a

institution

qualified

will

audited

expect

un¬

statements.

In many cases it
may

The

of

commercial
in

the

the

banker

mercial

to

three

interest

banker

in

all

of

com¬

probability

on

current

a

years)

covered four to five

to

For

particular

a

placement

great difference between

a

institutions

propriate

being the most

as

for

source

ap¬

particular

a

loan. Last Fall I checked three life

insurance
million

companies

dollar

that

company

plant.

new

have

wished

It

for

a
a

build

to

desirable

was

considering

were

regarding

placement

a

to

15-year maturity, and they

a

to

payments
Rates

delay in prin¬

a

of

two

quoted

three

or

varied

from

almost complete lack of inter¬

est.

addition to

In

propriate

banker
best

finding

lender,

will

trv

terms

the
to

ap¬

an

investment

negotiate

possible

the

regarding

maturity, interest

rate,

and

spe¬

cific

loan

that

will

fit

terms

the

the

of

Company's

past

financial

performance and mode of
tion.

Since

such

opera¬

factors

the

as

Company's operations, standing in
its

industry,

the

management,
and other

to

the

continuity

employee

questions

prepare

buyer,

banker

must

operations and financial

on

Company,
a

pro

will

well

as

the
often

complete study

a

of

benefits,

important

are

institutional

investment

the

the

on

sells

serviced

the

The funds in

hands

no

of

All

of

Total debt service

the

the

(interest plus installments) should

in

long-term




notes

the

to

agent

best

can

interest

as

truly
of

his

used

byi oil

companies,

Public Financing

made private place¬

in several

industrial

the company.

is

fields

still

weak

would

and

want

a

5-year

in

lethargic,
and

we

with

company

record

a

earnings

understand the

industry in which
Company
is
engaged,
the
Company's position in its indus¬

the

try and its competitive position. A
continuity of management is es¬
sential.
bonus
fits.

We

,

must

know

salaries,

plans^ and employee bene¬

Often

changes

are

his

which

market,

company

be

can

needs

;

field is

an

excellent source of

and

a

as

and, there¬

retain

all

its

of

more and more

medium-size

compa¬

cash dividends to
public stockholders. If a majority

■

new

of

may

the

pay

stock

is

individuals in

owned

by

few

a

high tax bracket,

a

firm

Convertible
ferred

outsider

an

or

debentures,

this is usually

financing.
is

bond

usually reserved for
Investment bankers

terested

in

pending

upon

stock,
not

blocks

be

The

,

subject

acquisitions

of

is

have

reached

with

its

a

their

of

company may

saturation

debt

and

point

I

field

will

since

briefly

separate

this

cover

material

is

public financing.

on

of

Our work is

audited

certificates

available

for

Several

ing

are

state

Offerings

types of equitv financ¬

including, intra¬

common,

exemotion,

best-efforts

of¬

may

tant

to

hot

best-efforts

in

will

issues

handle

not

or

intrastate

,

A best-efforts issue

which

does

Most'. investment

the

not

investment

guarantee

is

one

banker

purchase

of

have

been

cannot

Company

be

as

since

price

is

multiple

a

earnings.4 The

accept

for

audits

p.oses

made

several

be particularly impor¬

negotiated

Registrations.

un¬

tion in the

often

the

of

will

SEC

registration

with

the

pur-

qualifica¬

any

certificate, all of which

Where the principals of the Com¬

desire

pany

liquidity of their

some

private holdings,

Company has

a

receive

merger

the

of

'

'

or

In

best

efforts

sell

to

the

antee to the

stock

will

Company that all the

be

sold

to

the

public.

Most underwriters will not handle
issues

under

the

intrastate

ex¬

;

ing in

own

,000

to

run

a

$50,000,

perhaps

greatly

Counter

or

with

emption because of constantly in¬

the

If

answer.

does

have

not

principal costs

creasing legal problems. Although

legal

intrastate

an

sense

addition,
between

its

that

it

in

counsel,
will

the

long

feel

not

the

there
the

is

the

price

difference
which

at

writer

The

Comoanv

resold

the

public.

This

many

problems

underwriter's

spread.

For

and
to

that

which

at

for the future, which would com¬

amounting to $1 million to

plicate

$4

larger

a

offering

public

at that time.

from full
the

is

exemption

an

registration and involves

filing of

with

the

offering circular

an

office

regional

SEC. It is limited to

based

amount

the

million,

of

the

$300,000, the
the

on

offering

the

is

the

is

issues

$3

or

to 10%. From

investment bank¬

spread the

ing house normally
own

it

underwriter's

spread may be 8%

"A" Filing

An

the

is purchased by the under¬

stock

Company

run.

be incurring

may

do

we

benefit

for accounting,

are

fees, and printing costs. In

offering majf make

at the time to the Company

and

The

pays

such

expenses,

as

all of its

its

own

legal fees, advertising, sales com¬
missions,

The

etc.

managing

underwriter may form a syndicate

price of the securities to be sold.

of other investment houses so the

Many investment houses will not

stock

handle

such

small

a

issue.

certain limited situations

where

we

in

Filings

debt

In

have

we

conjunction

financing,

or

in

the

long

factory;
does

for
The

do

we
an

an

a

not feel

results

the

worth

$300,000

provide

enough

necessary

trading market,

million

at

dollars,

$10

of

trading

adequate

minimum

shares

Basically, how¬

run.

"A" Filing are very

not

well

sufficient

then

again,

association with

an

a

or

we

say,

share,

important,

than

being

for

are

few

a

100,000

and

of

the

of

should

merger

a

reasons

be

Difficulty to

Effect

Consolidation
investment

The

not

date

only

for

in

a

the

or

involve

mav

merger

a

are

often

important,

more

and

publicly

candi¬

full study of

operation

nancial picture. Once

and

begun, the investment banker

are

must

imaginative

present
will

that

be

satisfactory

ideas

so

that

at

the

time

the

party he is representing and also
digestable by the other side. Terms

agreed

upon

straight

cash

payments,

involve

may

payment,

based

a

incentive

upon

the

per¬

formance^ of the company, a taxfree

exchange of common stock or

voting convertible preferred, or a
combination.

time

on

Industrial

Our

partment spends
merger

a

De¬

large part of its
and

acquisition

possibilities.
Franklin H*»f"re
of the California
Public Accountants,
San Francisco, Calif., July 16, 1963.
♦An

the

address
Bav

East

by

Mr.

Cbantpr

Certified

of

financed

Singer, Bean Wire
To Dallas Firm

company

become

Other services pro¬

the

investment banker
a market in the

providing

stock,

support
the

the

to

Singer,

Bean

&

Mackie,

Inc.,( 4G

have

search

fi¬

negotiations

lic financing.

Company's

also

properly.

partners from the day of the pub¬

by

a

ap¬

but

companv

company's

has

the

company,

presenting the
This

banker

finding

the investment

offering

or

banker

include

con¬

companies.

Exchange Place, New York

vided
a

be

of the initial offering. The invest¬

stock

feel, is

of

rendered

those

a

large company may be the answer.

Services Provided

services

banker after the
as

research

funds to keep abreast of its field,

Society

Post-Offering
The

be

may

company

where the

areas

distributed.

ment

market.

nationally, par¬

desires its stock to

Company

satis¬

stock

be sold

ticularly in those

believe the company is
very

can

association

small

a

propriate buyer

Filing

Company

company

in

that.

Over-the-

a

adequately,

larger

a

job

"A"

Tf

to exoloit their market

money

potential

No

of

ex¬

greater

does not have sufficient personnel

minimum of $35,an

the

in

market.

equity financ¬

quarter

a

to

which might fluc¬

company,

tuate

full S-l Registration will

a

probably

stock

represents

sidered by many

Costs of public

able

liquidity than the stock of their

Filing Costs

stock.

other words, there is no guar¬

a

ex¬

the New

on

other

some

that

the issue, but only agrees to exert
his

from

from

be

may

stock listed

a

change

These

issue.

price

tax-free

a

it

well,

sellout than

or

Company

York

why

public

better

a

stock.

own

done

change is desirable, the principals

points to the need for full audits
a

public offer¬

a

ing of the Comoany's
If

is often

a merger

effective than

more

for several years

prior to

field,

and I will only mention it briefly.

receive

easier

are

last

we

offering

audited

r

the financial results.

the

public

the
divi¬

with

audits

made, ",
of

This

ferings, "A" Filings, and full S-l
houses

the

Unless

years.

to

made much

statements

qualified

confident
Small Equity

rights

period of time.

a

regularly

'

having

or

waive

dends for

if

creating

stock

principals

substantial

a

increase in equity through a pub¬
lic
offering may be : the only
answer.

classes

dividends.

a^d

mergers

separate

a

public offering. If

diversity

the
may

or

IV

a

principals

may

De¬

of

Mergers and Acquisitions

two

investments. Also

stock.

necessary.

The

the

also in¬

are

source

registration

answer

be

large

very

of

the

to

cash

in

financing

companies.

principals of the company,

may

pre¬

secondary step

a

Public

may

receive

pre¬

stock, and convertible

naturally such people do not want

give

of

ferred stock may also be sold, but

capital for companies, it does not
provide an estate value for the
or

his

of

the Board

on

necessary

identified

earnings, I believe

Although the private placement

decent

■

we

today's

offering

banker

may often request that a member

for

public

further

on

financing. The investment

choice be placed

Over-the-Counter

Company's

advice

of

a

to

the

of

and

qualify

nies

ever,

lender.

intelligently

commit

small-

from

banker

willing

to

be¬

and

is

fore,

been

financing service stations.

investment
are

is

investment

informed factually and

are

himself and his capital. To

debt

through

he

has

for

private

the

before

company

"A"

way go

borrower

the

1962,

ments

and

wholly-

a

outstanding and will do

investment

client.'
In

to

investigation

^needed by the investment banker

true growth

done

negotiations

borrower's

work

land

bank has with the sub¬

with

eventually retired.-

tween

bank's

thorough

other

and

houses

progress,
A

sidiary. The same-sort of formula

showing

and

Requirements for Public Offering

25

stitutions,

institutions, the security being the before the public can be asked to
property itself, plus the long-term invest in a company. Unless a

history of

as

forma basis how, the loan

be

the

is

subsidiary. This subsidiary

turn

times before

taxes and before the deduction

charges.

be

in

issues.
there is

'

financing

larger

a

i-

after-taxes in its latest year of at
least $200,000 to $300,000. We must

financing 1: bank

sold

are

banking

the

and

owned

participate

Operations and Financial History

the

(including

buildings

be wise if

private placement. The

factor

institutional

The

available

shorter term maturities

banker.
a

properties.

the investment banker invites the

charges

these

at

may

of the

Thus,

over

kept

paid

buyer will normally expect fixed
leases

mort¬

or

5%% to 6%, and from enthusiasm

long-term

size

with

companv

raised

for

ings record of five
should

loans

percent of earnings that

be

cipal

qualify

can

be

There also

years.

Financing Rules of Thumb

who

collateral

requirement that working capi¬

a

company's shares,

the

common,

as

debt. There normally will be

for

reasons

despite

for

no

gage

the

imaginative

much prefer

we

issue.

good

;

being done by private place¬

reputation

placed ahead of it,

will continue to loan

The sale of stock, either preferred
or

that

basis.

for the

broadening

would

$5,000.

offering

cost,

market

this

Had

probablv

exceeded

There may
a

been

costs

$900,000

a

$12,000.

was

the

institution

an

such

com¬

that

me

legal costs involved in
mortgage

debt

unsecured

an

the

covenants.

I

the^legal costs
sepbred debt

a

than those for

because

costs.

of

amount

anxious

secured debt be

tal

;

unsecured note, it will be

an

particularly

a

'

company.

necessary

equity to persuade the institution
to make the loan. If

11%

be

may

purchase

Imaginative Placements

lease

violated, it

are

would cost the company anywhere

cost

/

and one-half to two times. In

one

cash

the

ments. Ope firm has established a

Long-Term Capital Sources
legal

long-term debt, new

and

another

Some

total

with

along

included strengthen¬

of short- and

now

and

equity

a

ing of working capital, refunding

^

Continued from page 13

included

long-term debt. Uses for the

new

course,

first mortgage

situation

of

the

situation

one

were

One

placement

of

the fund.

in

•„

placed

bonds.

in

the long-term debt was

cases

notes

and

food,

Although

products.

(457)

for

continuous

a

direct

public, in¬

the

private

Dallas, Texas, office

re¬

the Company

investing

of

announced

wards

&

Sons,

New York Stock

City,

installation

wire to

the

of A. G. Ed¬

members

of

Exchange.

the

t

The Commercial and Financial Chronicle

(458)

26

.

.

.

Thursday, August 1, 1963

* INDICATES

Securities Now in Registration
will

not

NOTE

—

Registration statements filed with
"Chron¬

the SEC since the last issue of the

icle"

are

now

carried separately at

tion." Dates shown in

parenthesis alongside

the company's name,

and in the index, re¬

flect the expectations

of the underwriter but

not, in general, firm offering

are

Also

"Effective

Beneficial

licly.

Life

Insurance Co.

.

Bradford

July 22,

Allegheny Ventura Corp.

on

July 12, 1963 filed 37,231 outstanding common shares to
be offered for subscription by stockholders of Allegheny

Corp., pareint, on the basis of one Ventura share for
25 Allegheny shares held.
Price—By amendment
(max. $10). Business—Car rental. Proceeds—Allegheny
will receive the proceeds and loan them to Ventura.
Address—Washington
National
Airport,
Washington,

offered for

Burroughs Corp.
28, 1963 filed 742,144 common being offered for
subscription by stockholders oh the basis of one new
share for each pine held of record July 19.
Rights
will expire Aug. 5. Price—$23.75. Business—Production
of a wide variety of business machines, business forms,
and office accessories; also military products, primarily
in the field of computation and control. Proceeds—For
debt repayment. Office—6071 Second Ave., Detroit. Un¬
derwriter—Lehman Brothers, New York.
v
June

investments.
Underwriter

(8/26-30)

April 30, 1963 filed 100,000 common. Price—$4. Business
—A real estate development company. Proceeds—For
debt repayment, property improvement, and working
capital. Office—700 Park Ave., Plainfield, N. J. Under¬
writer—S. Schramm & Co., Inc., New York.

•

Canaveral Hills Enterprises, Inc.
May 10, 1962 filed 100,000 common. Price—$5. Business
—Company was formed to own and operate a country
club and golf course, swimming pool and cabana club,
near
Cape Canaveral, Fla., and develop real estate,

Atlas Management Co.
March

28, 1963 filed $1,500,000 of 6% conv. subord. de¬

bentures

due

company

for two insurance subsidiaries. Proceeds—For

loan

Price—At

1978.

par.

investment,

repayment,

Business—Avoiding

and

erect

to sub¬
Under¬

advances

Castle Hospitality Services, Inc.
Dec. 14, 1962 filed $500,000 of 8% debentures due 1969
Price—At par
($1,000). Business—Company plans to
offer management and consultant services to motels and
them with equipment.
Proceeds—For general

furnish

corporate purposes.

Beach, Fla.

pano
•

Office—1068 S. Ocean Blvd., Pom¬
Underwriter—None.

Chemair

Corp. (9/9-13)
Dec. 28, 1962 filed $150,000 of 6% subordinated income
debentures due 1973 and 30,000 common shares to be
offered in units consisting of one $10 debenture and two
common.
Price—$12 per unit. Business—Production and
sale of chemicals designed to control odors, bacterial
growth and air pollutants; and development, produc¬
tion and sale of an electronic vaporizing unit for dis¬
pensing such chemicals. Proceeds—For debt repayment,
equipment, sales promotion and working capital. Office
—221 N. La Salle St., Chicago. Underwriter—Price In¬
vesting Co., New York. Note—This company formerly
was named
Chemair Electronics Corp.

in

over-the-counter securities
,l.

/'

Proceeds—

expansion. Office—309 Ainsley
Bldg., Miami, Fla. Underwriter—Willis E. Burnside &
Co., Inc., New York. Offering—Indefinite.
'

Bay State Exchange Fund, Inc.
May 29, 1963 filed 10,000 $1 par capital shares to be
offered in exchange for certain acceptable securities on
the basis of one share for each $25 of deposited securi¬
ties. Exchange is believed by counsel for the Fund to
be tax-free for Federal income tax purposes. Business—
A closed-end investment company seeking long-term
growth of capital and income. Proceeds — For invest¬
ment. Office—35 Congress St., Boston. Underwriter—
Kidder, Peabody & Co., New York. Note—The exchange

•

homes, apartment houses, motels, etc.

For debt repayment and

sidiaries. Office—112 California Ave., Reno, Nev.
writer—None.

....

-•

International Detective

Agency, Inc. (8/12-16)
July 17, 1963 filed 150,000 class A common. Price—By
amendment (max. $28). Business — Company furnishes
protective services to industrial and commercial clients,
princpally by means of uniformed guards. Proceeds—For
selling stockholders. Office—235 E. 42nd St., New York.
Underwriter—Smith, Barney & Co.,: Inc., New York.

■—None.

Corp.

share for each two Atlas

■

(William J.)

specializing in

Chestnut Hill

Industries, Inc.
29, 1961 filed 300,000 class A common, of which
225,000 are to be offered by the cqncipany and 75,000 by
stockholders.
Price—$5. Business—Design and manu¬

osNEW

Nov.

ISSUES

facture of women's,

.

SJLEGEIj V

°

dba

Citadel Life

ESTABLISHED 1942,

Members of New York Security dealers Association
39
I

Broadway, New York 6, N. Y.

Dlgby 4-2370

TWX: 212-571-0320

Direct Wires

misses' and junior sportswear, co¬

ordinates, and dresses. Proceeds—For debt repayment,
equipment and working capital. Office—-2025 McKinley
St., Hollywood, Fla.
Underwriter—Clayton Securities
Corp., Boston, Mass. Offering—Indefinite.

BOUGHT■SOLD - QUOTED
for Banks, Brokers, Institutions

to

R. J. HENDERSON & CO., INC., Los Angeles
WOODCOCK, MOVER, FRICKE & FRENCH, INC., Philadelphia

,

filed 200,000 common.

expenses.

: j.'




-

s

-

:>«>'

•:

w-

'•

-

-'

$5.

Price—$1.

Proceeds—For

Insurance

of Missouri

Co.

1962 ("Reg. A") 46,000 common to be offered
subscription by stockholders on the basis of one share

for each 3.36

common

shares held. Price—At-the-market.

Business—Sale of

health, accident, life and hospital in¬
working capital. Office—3570
Lindell Blvd., St. Louis. Underwriter—Edward D. Jones
& Co., St. Louis. Offering—Indefinite.
Proceeds—For

surance.

Common Market Fund, Inc.
March 7, 1963 filed 2,000,000 capital shares. Price—Net
asset value plus 8.5%. Business—A new mutual fund

specializing in securities of foreign and American com¬
panies operating in the European Common Market.
Proceeds—For investment.

Beverly

Office—9465

Wilshire

Blvd.,
Cabot &

Hills,

Calif. Underwriter—Kennedy,
Co. (same address). Offering—Indefinite.

Community Health Associations, Inc.
1963 filed 150,000 common, of which

April 12,

100,000
to be offered by company and 50,000 by Harry E.
Wilson, President. Price—$15. Business—Sale of hospital
and surgical insurance contracts. Proceeds—For invest¬
ment, sales promotion, and other corporate purposes.
Office—4000 Aurora Ave., Seattle, Wash. Underwriter—
are

None.

Continental Reserve Corp.
May 13, 1963 filed 45,000 class B common. Price — $40.
Business
Company plans to acquire, organize, and
manage life, accident and health insurance concerns.
—

Proceeds

—

East 40th

For investment in subsidiaries.

Office—] 14

St., New York. Underwriter—None.

Defenders Insurance Co.
Jan. 30,

1963 filed 100,000 common. Price—$12.50. Busl-„
Company plans to write automobile insurance.
Proceeds—For general1 corporate purposes. Office—146
Old Country Rd., Mineola, N. Y. Underwriter—None.
ness

—

Deuterium Corp.
Sept. 28, 1962 filed 120,000 common with attached war¬
rants to purchase an additional 120,000 shares to be of¬
fered for subscription by holders of its stock and deben¬
tures in units (of one share and one warrant) on the
basis of 3 units for each 5% prior preferred share held,
one unit for each 5%
preferred A stock held and 40
units for each $1,200 face amount of non-interest bear¬
ing subordinated debentures held. At the same time, the
company will offer the securities to the public. Price—
To subscribers, $20; to public, $22.25. Business—Com¬
pany plans to erect a small size production and experi¬
mental plant for the limited manufacture of deuterium
and deuterium oxide, and to establish and equip a gen¬
eral research laboratory/Proceeds—For working capital,

construction, equipment and other corporate purposes.
Office—360 Lexington Ave., N. Y. Underwriter—None.
Diversified

Collateral Corp.
13, 1962 filed 77,050 common. Price—By amend¬
ment (max. $11.75). Business—A real estate investment
June

Proceeds—For investment. Office—8397 N. E.
Second Ave., Miami, Fla. Underwriter—None.
company.

Doman Helicopters, Inc.
April 19, 1962 filed 418,680 common to be offered for
subscription by stockholders on the basis of two new
shares for each three held.

$1.25).

Price—By amendment (max.

Business—Research, development and construc¬

tion of experimental helicopters. Proceeds — To obtain
certification of models, train service personnel, repay

debt, etc. Address—Municipal Airport, Danbury, Conn.
Underwriter—None. Note—The SEC has issued a stop
suspending this registration statement.

order

Dri-Zit Corp.
May 29, 1963 ("Reg. A") 115,056 common. Price—$2.50.
Business—Manufacturer of dri-zit (a home product used
to absorb odors and moisture); a cleaner for oven and
barbeque grills; and a diaper garment for infants. Pro¬
ceeds
For expansion, inventory and debt repayment,
Office—2 Ryland St., Reno, Nev. Underwriter — First
Nevada Securities Corp., Reno, Nev.
—

Duval Corp.
June

1963 filed $10,000,000 of 4%%

18,

of convertible
offered
the basis of one $100

subordinated debentures due Aug. 1, 1983 being
for

Insurance Co. of New York

Life

Nov. 26,
for

subscription by stockholders on
for

each

13

shares

of record July

held

18.

March 26, 1963 filed 40,000 capital shares to be offered

debenture

for

the basis of two
new shares for each three held/ Price—By amendment
(max. $26). Business—Writing of life, accident, health
and disability insurance, and annuities. Proceeds—For
expansion. Office—444 Madison Ave., N. Y. Underwriter
—Alex. Brown & Sons, Baltimore. Offering—Indefinite.

Rights will expire Aug. 9. Price—At par. Business—Min¬
ing, milling and marketing of copper, molybdenum, and
potash and the mining and marketing of crude sulphur.
Proceeds—For construction, and other corporate pur¬

Coastal Chemical Corp.
June 26, 1963 filed 40,000 class A common; also 40,000
class D common to be offered by, Mississippi Chemical

Dynapower Systems Corp.
Sept. 28, 1962 filed 750,000 common.

subscription

by

stockholders

on

poses. Address — 1906 First National City Bank Bldg.,
Houston, Tex. Underwriter—None.

ness—Manufacture
'

of

v.

i*

—

Busi¬
exploration and
Office—Creede, Colo. Underwriter

mining.

Commercial
..

Prices—About

.

Burns

subscription by stockholders on the basis of one share
for each five shares held. Price—$18. Business—A mort¬

Atlantis International

operating

packaging machinery. Bradford also owns 69,509
(9.59%) of Foster Wheeler Corp. Proceeds—For
selling stockholder, Atlas General. Office—62 William
St., New York. Underwriter — Burnham & Co., New
York.

Price

—None.

shares

Amerel Mining Co. Ltd.
July 31, 1961 filed 400,000 common shares. Price—500.
Business—The company is engaged in exploration, de¬
velopment and mining. Proceeds—For diamond drilling,
construction, exploration and general corporate ex¬
penses.
Office—80 Richmond St., W., Toronto. Under¬
writer—E. A. Manning, Ltd., Toronto.

•

Bradford

1962

ness—General

of

Underwriter—None.

gage insurance company.
Proceeds — For
Office—300 St. Salisbury St., Raleigh, N. C.

one

common.

Colorado Imperial Mining Co.

$9.44 per share. Business—
Company holds a 40% stock interest in Maryland Log¬
ging Corp., which conducts logging operations in Liberia
and will acquire from Atlas, Kliklok Automated Pack¬
aging Division, engaged in the manufacture and leasing

each

be

held.

50,000

General book publishing.

—

Sept. 20,

Speed Packaging & Development Corp.
filed 819,024 common to be offered ta
of Atlas General Industries, Inc., parent,

the basis of

shares

ISSUE

Proceeds — For
working capital and purchase of equipment. Office—60
East 42nd St., New York. Underwriter—Hannibal Secu¬
rities, Inc., New York. Offering—In late August.

1963

stockholders

American Mortgage Insurance Co.
Jan. 10, 1963 filed 31,070 common to

Business

—

Underwriter—None.

C.

Coleridge Press Inc.
19, 1963 ("Reg. A")

Bobbie Brooks, Inc. (8/19-23)
July 18, 1963 filed 201,150 capital shares. Price — By
amendment (max. $28).
Business — Manufacture of
fashion apparel, primarily for girls and women. Pro¬
ceeds
For selling stockholders. Office — 3830 Kelley
Ave., Cleveland. Underwriter—Bache & Co., New York.

Airway Hotels, Inc.
April 1, 1963 filed 200,000 commpn. Price—$5. Business
—Company owns and operates a chain of motor hotels,
apartment buildings and a shopping center. Proceeds—
For loan repayment,
expansion and other corporate
purposes. Office — 901 Fuhrmann Blvd., Buffalo, N. Y.

D.

.

ITEMS REVISED

June

ment

.r -V.;

•

PREVIOUS

Miss. Underwriter—None.

N. Y.

of

28, 1963 filed 200,000 common. Price—By amend¬
(max. $4). Business—Writing of life, accident and
health insurance. Proceeds—For general corporate pur¬
poses. Office—122 East 42nd St., New York. Underwriter
—None.<
v;' V ■
'V?'
/1" u.'■

are

'vV

Standard

SINCE

Corp., parent. Price—For class A, $35; for class D, $30.
Business—Manufacture, of a variety of high analysis
fertilizers, anhydrous ammonia, and other fertilizer ma¬
terials and components.
Proceeds—For working capital
and other corporate purposes. Address — Yazoo City,

June

those issues which became
effective this week and were offered pub¬

Registrations"

$25,000,000 of securi¬

Springfield, Ohio. Underwriter—Consolidated Securities
Corp., Pompano Beach, Fla. Offering—In early Sept.

dates.

shown under the caption

unless

are

• Bede
Aircraft, Inc.
July 16, 1963 filed 600,000 common. Price—By amend¬
ment (max. $3). Business—Company is engaged in the
design and development of several airplanes, including
a light sports plane.
Proceeds — For debt repayment,
product development, working capital and other cor¬
porate purposes. Office — 350 South Fountain Ave.,

the end

Registra¬

of this section "Securities Now in

consummated

be

deposited and accepted. This means that the
Fund expects to issue a minimum of 1,000,000 capital
shares. Offering—Indefinite.
ties

ADDITIONS

:

n

<■?
'3

i

•<' r

\'d;; 0

•.«,

Ct

t

Price—$1 Busi¬
electro-mefchanic^I vehicles and
I

..

....

Vv

.

.

.

..

.

.•<.

'

.I.'.
-•

Number 6286

198

Volume

.

.

The Commercial and Financial Chronicle

.

electronic devices for medical and marine purposes.
Proceeds—For working capital, equipment and debt re¬

Office—2222 S. Centinela Ave., Los Angeles.

payment.

Underwriter—None.

Eagle's Nest Mountain Estates, Inc.
1963 filed $400,000 of 8% subord. conv. debs,
due 1983; also 400,000 common, of which 300,000 are to
be offered by the company and 100,000 by stockholders.
The securities will be oftered in units of one $100 de¬
benture and 100 shares. Price—$350 per unit. BusinessCompany owns a 781 acre tract in Haywood County,
N. C., on which it plans to build houses, a motor lodge,
restaurant and an amusement complex. Proceeds—For
June 26,

I

Equity Fundng Corp. of America ;
March 29, 1962 filed 240,000 common. Price—By amend¬
ment (max. $6.50).
Business—A holding company for

the

economic

educational

and

Denver. Underwriter—None.

i

Alpha Investment

—

For expansion

—By

capital. Office — 147 Northeast Main St.,
Rocky Mount, N. C. Underwriter—Paul C. Kimball & Co.,
Chicago.
\
;t;

Electro-Optical Systems^ Inc. (8/19-23)
filed 403,000 common, of which 140,000 are
to be offered by company and 263,000 shares by stock¬
holders. Price—By amendment (max. $10). Business—
Design and manufacture of optical systems for the De¬
fense Department and for private industry. Proceeds—
For debt repayment and working capital. Office—300 N.
Halstead St., Pasadena, Calif. Underwriters — White,
I Weld & Co., Inc., and Kidder, Peabody & Co., Inc., N. Y.
June 11, 1963

I"-

dorp.

Electronic Dispenser

I Jan. 29, 1963, filea o0,00u comnion. Price—$2. Business
i—Manufacture of the SAFER Butter Chipping machine,

(and processing of tray-forming and chip-covering mate¬
rials. Proceeds—For operating expenses, equipment, in¬
and advertising. Office—118 E. 28th St: Nbw
York. Underwriter—L. D. Brown & Co., New York. Of¬

ventory

fering—Postponed.

y

/

•

Enzyme Corp. of America (8/12-16)
Feb. 21, 1963, filed 120,000 common. Price—$2. Business
—Company plans to market a new drug known as
["Clinizyne" to be used for treatment of a variety of
tumor related diseases. Proceeds—Foi^ equipment, sales
promotion, research and development, and working captal. Office—727 Land Title Bldg., Philadelphia. Under¬
writer—Bristol Securities Inc., New York.

(max.

amendment

ers

and reduction of accounts

Pratt
'

Services

First American Israel Mutual

Florida Jai Alai, Inc.

Cullom

Nikko Securities Co. Ltd.;

Davis

St

Co.)

400,000

1962 filed 300,000 common. Price—$5. Busi¬
Operation of Jai Alai games and pari-mutuel
betting. Proceeds—For rent, purchase of leased quarters,
building improvements, working capital. Office — Fern
28,

(Thursday)

u^utner,

Plohn

(Nemrava

&

Co.)

200,000

Top Dollar Stores, Inc

shares

i

(Van Alstyne, Noel & Co.) $1,200,000

(White,

Scheib

a.m.

(Earl), Inc
(Shearson,

Aircraft

United

Bond*

Co.)

&

.-Common

200,000

;

shares

Corp.———

to stockholders—underwritten

(Offering

Ripley

& Co., Inc.) $42,884,000

4

>

(The Ohio Co.)

V

Common

100,000 shares

Union Securities & Co.)

(Baseman Dillon,

,,

—Common

St

St

Co.,

12

noon

CDST)

Inc.)

Price—For debentures, $10; for common, $4. Busi¬
Operation of self-service, drive-in restaurants.

Proceeds—For expansion, and working capital, Off ice—
1901 Sunset Ave., Rodky
Mount, N. C. Underwriters—

Continued

"7,/:

.

Chemair

(Monday)

Corp.

Investing

Co.)

$180,000

RR.—...Equip, Trust Ctfs.
EDST)

noon

12

x-Y-Xx

$6,900,000

EDST)

noon

X

;

Equip. Tr. Ctfs.

$6,540,000

Northern States Power Co. (Minn.)—

Atlantis International

September

19

Atlas Finance
(Marshall

-—Units

r

(Thursday)

Co., Inc.and

Co.

October 1

Preferred

...

McCormick

St

37,500 shares

Co.)

(Tuesday)

Chicago Burlington & Quincy RR—Equip. Tr. Ctfs.
(Bids

—Units
$1,000,000

12 noon CDST)

"nd

(Mi

Handleman
(E.

F.

October 3

SecuiiUts

Co.,

xnc.)

$5,000,000

——Common

Co., Inc., and Baker,
Inc.) 330,000 shares

Basic

—Debentures

October 8

$25,000,000

(Tuesday)
Corp

(Bids to be received)

October 15

Bonds
1

$15,000,000

(Tuesday)

Jersey Central Power & Light Co
(Bids

Ltd.--Debens.
$5,000,000

Corp.)

nconomy

Bonds

$18,525,000

(Thursday)

Simonds

$325,000

(Tuesday)

August 27

EDST)

Wisconsin Public Service

$300,000

Tourist Industry Development Corp.,
(American-Israel

.—Units

Inc

—:
&

Co.,

a.m.

Columbia Gas System, Inc

—J—Common

Co.Hutton

11

(Bids to be received)

Corp

—Bonds

(Bids 11 q.m. EDST) $15,000,000

(Bids

Warren Co.)

-Units

—;

Y., Chicago & St. Louis RR
(Bids

on page

■

—

Norfolk & Western

(Monday)

August 26

—Common
(Parker, Bishop & Hart,

37,500 com¬

mon.

.

.

Corp. of Missouri

&

Independent Shoe Discounters Association,
Inc.

Hardee's Food Systems, Inc.
June 21, 1963 ("Reg. A") $150,000 of 6 y2% subordinated
convertible debentures due July
1,1973; also

'

Common

$900,000

Morgan St Co.)

L.

gen¬

Building, Lincoln, Neb. Underwriter—None.

(Tuesday)

August 20

$3,900,000

%

banking, insurance, finance, etc. Proceeds—For

eral corporate purposes. Office—1107 Federal Securities

Jersey Central Power & Light Co

I

Gulf, Mobile & Ohio RR.—Equip. Trust Ctfs.
(Bids

Corp.
20, 1963, filed 3,000,000 common. Price—$2. Busi¬
ness—Company plans to operate subsidiaries in the fields

$4,000,000

Inc.)

French Market Shopping Center,

-

V

$30,000,000

(Thursday)

Augusts

Greater Nebraska

Feb.

$450,000

Co.)

—

(R.

Minneapolis-Honeywell Regulator Co.—Debens.
,

—

(Wellington Co., Inc.) 300,000 units

Resort

Carolina Freight Carriers Corp.—,

Park, Inc.
25, 1963, filed 136,094 common to be offered for
lubscription by stockholders on the basis of one share
for each 4% shares held; Price—$5.50. Business—Acquisition and development of real estate. Proceeds
For
general corporate purposes. Office—811 duPont Plaza
Center, Miami, Fla. Underwriter—None.

September 18 (Wednesday)

——.—Debentures

Warwick Fund

(Wednesday)

August 7

Greater Miami Industrial

(Bids 12

Peabody

403,000 shares

Plohn

Peabody

(Peter

Underwriter

Note—This

Feb.

—————Common

———

(Kidder,

Debentures

by Harriman

is

(Jo.)

oc

Natural Gas & Oil Producing Co

$45,000,000

——

Hammill

Office—530 St. Paul PI., Baltimore.
be named.

firm formerly was known
Continental Real Estate Investment Trust.

shares

and Kidder,

Inc.,

Co.,

Mohawk Rubber Co

EDST)

—To

Capital Stock
201,150

Co.)

& Co., Inc.)

rCharles

11

ment.

N.

—

&

&

Weld

Heck's, Inc.

August 6 (Tuesday)
(Bids

mi/.gan

Electro-Optical Systems, Inc—

Common

Indiana & Michigan Electric Co

Investment Trust

.Aug. 3, 1961 filed 300,000 shares of beneficial interest.
Price—$10. Business—Real estate. Proceeds—For invest¬

.' <Price

(Monday)

(Bache

.

repay¬

expansion, research, and inventory. Office—545
Cedar Lane, Teaneck, N. J. Underwriter—Charles Plohn
& Co., New York.

$731,250

ana

or

Bobbie Brooks, Inc

Capital Shares

Trading Co.-

in construction. Proceeds—For debt

ment,

September 11 (Wednesday)

(Monday)

Augusts

Co.)

St

,,
inc,
$1,200,000

&t

^acis-n

August 19
Investors

beams used

September 9

Class A

Manufacturing & Leasing Corp—Com.

shares

;>

Devices,

Inc. (8/15)
June 29, 1962 filed 225,000 class A.
Price—$3.25 Busi¬
ness—Manufacture, sale and lease of steel supports and

.

Construction Devices, Inc.

and Shelby

,

Construction

ness-—

—

Roadcraft

Global

of

to invest primarily in equity type securities of Israeli
companies. Proceeds—For investment. Office—141 Milk
St., Boston. Underwriter—Paine, Webber, Jackson &
Curtis, Boston. Offering—Indefinitely Postponed.

"

(First Boston Corp.;

Fund

15, 1962 filed 2,750,000 shares of beneficial in¬
terest. Price—$10. Business—A mutual fund which plans
Aug.

June

Offering—Postponed.

,

Fidelity Mining Investments
30, 1961 filed 800,000 common. Price—By amend¬
ment. Business—Exploration and testing of mining prop¬
erties. Proceeds—For general corporate purposes. Office
—62 Richmond St., Toronto. Underwriter—G. V. Kirby
& Associates, Ltd., Toronto.

ness

,

Groat Continental Real Estate

Nov.

Tokio Marine & Fire Insurance Co., Ltd.—A. D. S.
-v

Office—3600 W

July 1, 1963 filed 64,000 common to be offered for sub¬
scription by stockholders. Price—By amendment (max.
$20). Business—A holding company whose subsidiaries
are engaged in the sales finance business arid the writ¬
ing of marine and credit life insurance. Proceeds—For
redemption
of
outstanding
second, preferred
stock,
working capital, and other corporate purposes. Office—
1701 Pennsylvania Ave., N. W., Washington, D. C. Un¬
derwriter—Mackall & Coe, Washington, D. C.

Global

(Thursday)

payable.

Blvd., Newark, N. J.

Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.

Finance Corp.

(Charles

^August 1

anc

Ave.? Chicago. Underwriter—None.

Federal

August 15

NEW ISSUE CALENDAR

Business—Design

$15).

manufacture of tools, dies, molds, beryllium castings anc
the distribution of plastic, metal and glass products foi
borne use. Proceeds—For a recession offer to stockhold

Income

Fund, Inc.
| :
May 31, 1963 filed 2,000,000 capital shares. Price—Net
asset Value plus 8V2%. Business—A new mutual fund
seeking current income. Proceeds—For investment. Of¬
fice—65 Broadway, New York. Distributor—F. Eberstadt
& Co., Managers & Distributors, Inc., New York.

investment,; Office—1180 Raymond

xV;

:v

Oct. 29, 1962 filed 20,000 common, of which 17,500 are tc
be offered by company and 2,500 by a shareholder. Price

land working

Eberstadt

Garden State Small Business Investment Co.
Oct. 27, 1961 filed 330,000 common.
Price—$3. Business
—A small business investment
company. Proceeds—For

mem¬

■

;

per unit. Business—Operation of a discount
type department store iri the Greater Kansas City area,
Proceeds—-For workiiig capital, and other
corporate pur¬
poses. Address — 95th & Metcalf Sts., Overland
Park,
Kansas. Underwriter
Midland Securities Co., IncKansas City, Mo.
V ty.-'
*Y;y
—

„!

r

4, 1963 filed 100,000 class A shares. Price—$4. Busi¬

ness—A small loan company. Proceeds

v

—

Fedco Corp.

(8/12-16)

Inc.

its

of

Center, Inc. (8/26-30)

Price—$500

For debt repayment, working capital
and advances to subsidiaries. Office—1575 Sherman St..

Inc., Atlanta, Ga.

Eastern Investors,

jjurie

—

betterment

French Market Shopping

24; 1963 ("Reg. A") $300,000 of 6% subordinated
debentures due Aug. 1, 1978, and 30,000 common to be
offered in units of one $500 debenture and 50 common.

Educational & Co-operative Union of
America
1 '

jDaytona Beach, Fla. Underwriter

'Securities,

•

June

Farmers'

bers. Proceeds

/

Underwriter—Consolidated Securities Corp.,
Pompano Beach, Fla. Offering—Indefinite.

Proceed!
—For new sales offices, advances to subsidiaries anc
working capital. Office—5150 Wilshire Blvd., Los An
geles. Underwriter—To be named. Offering—Indefinite.

[construction, debt repayment, working capital and other
'corporate purposes. Office—2042 South Atlantic Ave.,

27

Park, Fla.

firms selling life insurance and mutual funds.

April 1, 1963 filed $5,500,000 of 5y2-6% serial deben¬
tures, series E and F, due 1974-83. Price—At par; Busi¬
ness—A non-profit organization of farmers devoted tc

(459)

v:

October 16
Nevada

11

EDST)

a.m.

Debentures

$9,000,000

(Wednesday)

Power

Co.—

Bonds

'

August 12 (Monday)
Burns (Wm.

J.) Int'l Detective Agency Inc.—CI. A

(Smith,

Barney & ua.,

Eastern Investors,

Corp.)

$3,500,000

Lewis Business Forms,

Inc.—

Shares

-Class A

Inc.—

(Paul C. Kimball & Co.)

"•

;•

150,000

inc.)

Dorchester Gas Producing Co—
Debentures
(A. C. Allyn & Co.; Allen & Co.; Metropolitan Dallas

(Reynolds & Co., Inc.

$400,000

..Debentures

(Bids

October 22

be

to

received)

$11,000,000

(Tuesday)

Public Service Electric & Gas Co.—Debentures
(Bids

and Saunders, Stiver & Co.)

11

a.m.

EDST)

$40,000,000

$1,250,000

—Common

Enzyme Corp. of America—
$240,000

(Bristol Securities Inc.)

Lone

Star

Gas

Co.

(Bids 11

Juniper Spur Ranch, Inc
(V.

Lord

Jim's

E.

Anderson

Co.)

$300,000

Systems*
St

Co.)

York

New England

Securities

Co.)

,

—Common

166,376

to

—

a.m.

——.Debentures

.

Telephone & Telegraph Co

stockholders—no

underwriting)

2,099,858

Com.
shares

shares

; (Bids

Securities

Bids

November

National Fence Manufacturing Co.,
(Netherlands

"

Inc.)

Co.,

(Thursday)

Inc—Common
$875,000

New

be

(Tuesday)

Atlantic Coast Line RR
(Bids

12

noon

-

EDST)

Equip. Trust Ctfs.
$4,575,000

September

(Bids

Augdst 14

12

———

Commercial Credit Co


(Kidder,
Peabody & Co., Inc.


:

Notes

and First Boston Corp.)

11

a.m.

EDST)

——Preferred

$10,000,000

(Bids

...Bonds
$12,000,000

(Tuesday)

Equip. Trust Ctfs.

Northern Pacific. Ry._

(Thursday)

Iowa Public Service Co
(Bids

Bonds

$10,000,000
—

(Bids to be received)

December 10

$7,500,000

(Wednesday)
September S

Co

Equip. Trust Ctfs.

—

EDST)

noon

S7.000.000

received)

England Power Co..

New England Power

4 (Wednesday)

Southern Pacific Co..

—Preferred

(Tuesday)

(Bids to be received)

August 13

$30,000,000

i

to

19

—Bonds

—

-

-

be received)

to

Georgia Power Co.
1

(Tuesday)

September 3

7

Georgia Power Co

EDST) $35,000,000

Common

Inc

$100,000

Broadcasting, Inc.——
(New

I

St

(Offering

Service
(Keon

Rollins

—Common

—

November

12

noon

EST*

$4,800,000

Virginia Electric & Power Co
(Bids to be received)

—

$30,000,000

Bonds

28

28

The Commercial and Financial Chronicle

(460)

Continued from

page

27

(jointly); Eastman Dillon, Union Securities & CoJ; Equi¬
Corp.; White, Weld & Co.; First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. Bids
—Sept. 5 (11 a.m. EDST) at 20 Pine S't. (10th floor),
New
York. Information Meeting—Aug. 28
(3:30 p.m.
EDST) same address.
_v ;

payment of loans, and general corporate purposes. Office
—130
Fulton Federal
Bldg., Atlanta.
Underwriter—

table Securities

Powell, Kistler & Co., Fayettville, N. C.; Allied Securi¬
ties Corp., Greensboro, N. C.; McCarley & Co., Inc.,
Ashville, N. C.; Strader & Co., Inc., Lynchburg Va.;

Willis, Kenny & Ayres, Inc., Richmond Va^ and Clark,
Inc., Nashville, Tenn. Offer¬

Landstreet & Kirkpatrick,

ing—Imminent.
•

;

(8/19-23)
180,000 class A common. Price—

Heck's, Inc.

12, 1963 refiled

June

$2.50. Business—Operation of discount stores. Proceeds
—To provide fixtures and inventory for a new store, arid
for working capital. Office—6400 MacCorkle Ave., S. W.,
St Albans, W. Va. Underwriter—Charles Plohn & Co.,
New York.

offered for
subscription by stockholders of Union Bank of Califor¬
nia on a share-for-share basis.
Price—$3. Business—A
management investment company.
Proceeds—For in¬
vestment. Office—760 S. Hill St., Los Angeles. Under¬
1961 filed 2,265,138 common to be

16,

Holiday Mobile Home Resorts,

Inc.

filed $1,250,000 of 6Vz% conv. subord. de¬
1978, and 75,000 common to be offered in
units consisting of $50 of debentures and 3 shares. Price
$68 per unit. Business—Development and operation of
mobile home resorts throughout U. S. Proceeds—i or
debt repayment, construction, and other corporate pur¬
poses
Office — 4344 East Indian School Rd., Phoenix.
Underwriters—Boettcher & Co., Denver, and J R. Williston & Beane, New York. Note—This registration will
March 27, 1963
bentures due

be withdrawn.

Homestead Packers, Inc.

filed 5,000 shares of 6%

non-cumulative

preferred stock, and 5,000 common, to be offered for sale
in units of one common and one preferred share. Price
—$150 per unit. Business—Company plans to construct
and operate a beef and pork packing plant. Proceeds—
For construction, equipment, and working capital. Ad¬
dress—Beatrice, Nebr. Underwriter—None.
Horace Mann Life Insurance

Co.

1, 1963 filed 200,000 common, of which 80,000 are
to be offered by company and 120,000 by stockholders.
Feb.

$12.50. Business—Writing of life, accident and
health insurance. Proceeds—For general corporate pur—

Office—216 E. Monroe St., Springfield, 111. Under¬
writer—Horace Mann Investors Inc., (same address).

poses.

Discounters Association, Inc.

Independent Shoe
(8/8)

May 8, 1963 filed 325,000 common. Price—$1. Business
—Company plans to distribute shoes and related items
to franchised discount shoe stores. Proceeds—For work¬
ing capital. Office—519 West California Ave., Oklahoma
} City. Underwriter—Parker, Bishop & Welsh, Inc., Okla¬
homa City. '
I
Indiana & Michigan Electric Co. (8/6)
June 14, 1963 filed $45,000,000 of first mortgage bonds
due 1993. Proceeds—For loan repayment, and other cor¬
porate purposes. Office—2101 Spy Run Ave., Fort Wayne,
Ind. Underwriters
(Competitive). Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
rities & Co.; Harriman Ripley & Co. Inc.; First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.-Blyth
—

&

Brothers-Salomon

Co.-Lehman

Brothers

Hutzler

&

(11 a.m. EDST) at American
Corp., 2 Broadway, N. Y_ Infor¬
Meeting—Aug. 1 (3 p.m. EDST), same address

(jointly).

Bids—Aug.

6

Electric Power Service
mation
•

International

Book

Distributors,

Inc.

Interstate Securities Co.

May 13, 1963 filed 173,433 common being offered for
subscription by common stockholders on the basis of
one
new
share for each four held of record July 22.
Rights will expire Aug. 6. Price—$7. Business—Company
is engaged in consumer and commercial financing; writZ ing credit life, health and accident insurance, and auto¬
mobile physical damage insurance. Proceeds—For loan
,

repayment, advances to subsidiaries, and working capital.
Office—3430 Broadway, Kansas City, Mo. Underwriter—
A. G. Becker & Co., Inc., Chicago.
Investors

Inter-Continental Fund, Inc.
1963 filed 3,000,000 capital shares. Price—Net
asset value plus Txk%. Business—A new mutual fund

July 3,
which

will

succeed

to

business

Investors

of

Group-

Canadian Fund Ltd., and invest in securities throughout
the Free World. Proceeds—For investment. Address—
1000 Roanoke Bldg., Minneapolis. Distributor—Investors

Diversified Services, Inc.

(same address).

Investors Realty Trust
May 31, 1962 filed 200,000 shares. Price
—A

real

estate

struction

common.

and

investment

investment.

trust.
Office

Ave., N. W., Washington, D. C.

—

$10. Business

Proceeds
—

—

For

con¬

Connecticut

3315

Underwriter—None.

Investors Trading Co. (8/5-9)
Jan. 17, 1963 filed 200,000 capital shares.
asset value (max. $5), plus 8% sales

Ave.,

June

28,

Israel-Rassco

A

—

owns

filed 60,000
real estate

—

Net

Jaap Penraat Associates, Inc.
1962 filed 100,000 common. Price—$3. Business
designing, the design of teaching machines
and the production of teaching programs. Proceeds—
For expansion, new facilities and working capital. Office
—315 Central Park W., N. Y. Underwriter—R. F. Dowd
& Co., Inc., New York.
Offelring — Indefinitely post¬
poned. . '

Office—460

—

—

—

—

Corp., Los Angeles.
Meridian

March

4,

Office—467 Hamilton Ave., Palo Alto, Calif. Underwriter
—Mutual Fund Distributors, Inc. (same address).

search

ment
water

seed.

$7).

control

capital.

Mitsui

July 9,

July

22,

data

repayment

processing

and

working

&

Co., Ltd.

1963

filed 10,000,000 common (represented
by
500,000 A. D. S.) to be offered for subscription
by stock¬

holders

on the basis of one
new share for each two held
of record July 20.
Price—$2.78 per A. D. S. BusinessDomestic and foreign
trading in a broad range of goods
and commodities.
Proceeds—For

expansion

new investments.
Underwriter—None.

of

trading

Address—Tokyo, Japan.

Mobile Home Parks
Development Corp.
Jan. 28, 1963 filed
1,250,000 common. Price—$2.50. Busi¬

repayment, sales promotion, and other cor¬
Office—33-00 Northern Blvd., Long

ness—Company plans to develop mobile home parks and

purposes.

Lewis

electronic

loan

Fourth

New York.

residential

Co., Inc.,

general

New York.
•

and

Proceeds—For

Office—2747

activities, and

&

purposes.

Bldg., Minneapolis.

Ave., South Minneapolis.
Underwriter—Eastman Dillon, Union Securities & Co.,

Industries, Inc.

City, N. Y. Underwriter—T. W. Lewis

New York.

Price—By amendment (max.
closed-end management investment

A

instruments,

systems.

expensively priced men's and children's belts. Proceeds

Island

Woodbridge, N. J.

Minneapolis-Honeywell Regulator Co. (8/7)
July 16, filed $30,000,000 s. f. debentures due 1988. Price
By amendment. Business—Manufacture of automatic

1963 filed 125,000 common. Price—By amend¬
(max. $5). Business—Volume manufacture of in¬

porate

—

Underwriter—None.

June 28,

debt

Business
—

—

—For

Office—52 Main St.,

company. Proceeds — For general
corporate
Office
2615 First National Bank

inventories, plant expansion and working capital.
Office
2301 N. Main St.,
Paris, Texas. Underwriter
—John A. Dawson &
Co., Chicago. Offering—Indefinite.

ment

amend¬

distributing
Jersey. Proceeds — For

New

for each two shares held.

able

Krasnow

of

areas

Development Corp.
26, 1962 filed 561,500 common to be offered for
subscription by stockholders on the basis of one share

receiv¬

accounts

Re¬

Midwest Technical

Processing and distri¬

Proceeds—For

&

Feb.

Kraft (John) Sesame Corp.
May 24, 1962 filed $225,000 of 6% conv. subord. deben¬
tures, due 1972, and 150,000 common to be offered in
units consisting of a $300 debenture and 200 shares.
sesame

in certain

Underwriter—Kidder, Peabody & Co., Inc.,
Offering—Indefinitely postponed.

.

—

Management

5, 1963 filed 35,000 common.
Price—By
(max. $36). Business—Collecting and

debt repayment.

Key Finance Corp.
June 7, 1963 filed 80,000 common. Price—By amend¬
ment
(max. $5). Business—Operation of a small loan
business in Puerto Rico. Proceeds—For loan repayment,
expansion and other corporate purposes. Address—Rio
Piedras, Puerto Rico. Underwriters — Morris Cohon &
Co., and Street & Co., Inc., New York. Offering—In¬
definite.
; ////

unit. Business

Underwriter—Centennial
Corp., (same address).

Middlesex Water Co.
June

Kelly & Cohen, Inc.
|
May 17, 1963 ("Reg; A") 90,000 common. Price—$2.75.
Business—Retail sale of major household appliances at
discount prices. Proceeds—For working capital, expan¬
sion and debt repayment. Office — 3772 William Penn
Highway, Monroeville, Pa.
Underwriter — Amsbary,
Allen & Morton, Inc., Pittsburgh. Offering—Imminent.

per

Bldg.,

—

Denver.

Spur

$800

■■■};:■

filed 500,000 capital shares. Price—Net
plus 5%. Business—A new mutual fund to be

offered initially to members of the
medical profession.
Proceeds—For investment. Office
714 Boston

Ranch, Inc. (8/12-16)
May 27, 1963 ("Reg. A") 300,000 common. Price — $1.
Business—Construction of a gasoline and diesel oil fill¬
ing station, a restaurant and allied facilities. Proceeds—
For general corporate purposes. Underwriter — V. E.
Anderson & Co., Newhouse Bldg., Salt Lake City.

—

Fund, Inc.

1963

asset value

bution of

Medical As¬

—

Medical Video
Corp.
13, 1961 filed 250,000 common. Price
$1. Busi¬
ness
Manufacture of medical electronic
equipment.
Proceeds
For general corporate
purposes.
Office—
Studio City,
Calif.
Underwriter
Financial Equity

Inc.
April 10, 1963 filed 500,000 capital shares. Price — Net
asset value plus 8Vz%. Business—A new mutual fund
seeking capital appreciation. Proceeds—For investment.

Price

Office

Nov.

Fund,

lanta.

and

commercial

corporate

real

Proceeds—For

estate.

Office—82

purposes.

Underwriter—Overseas

Baker

Investment

St.,
Service,

At¬
Se¬

Business Forms,

ville, Spain.

1963

Mohawk Rubber Co. (8/19-23)
July 19, 1963 filed $4,000,000 of convertible subordinated

Inc. (8/27)
$1,250,000 of convertible subordi¬
Price—By amendment. Busi¬

filed

nated debentures due 1973.

Manufacture of a diversified line of business
Proceeds—For plant expansion, loan repayment
and working capital. Office—243 Lane
Ave., North, Jack¬
sonville, Fla. Underwriters—Reynolds & Co., Inc., New
York, and Saunders, Stiver & Co., Cleveland.

debentures due 1983. Price
By amendment. Business
—Manufacture of tires for passenger
cars, trucks, buses

Logos Options, Ltd.
April 11, 1962 filed 250,000 capital shares. Price — By
amendment (max.1 $10). Business—A diversified closed-

Kidder, Peabody & Co., Inc., New York,

ness

—

—

forms.

and earth

ment,

Morton

Broadway; N. Y. Underwriter—Filor, Bullard &
Smyth, N. Y. Note—This company formerly was named
Logos Financial, Ltd. Offering—Indefinite.

Inc.

Systems, Inc. (8/12-16)
Jan; 14, 1963 ("Reg. A") 100,000 common. Price — $1.
Business—Operation of drive-in restaurants. Proceeds—
For leases,
equipment and working capital.
Office—
1601

Mandeville Canyon Rd., Los Angeles.

Co., Los Angeles.

Underwriter

New York.

ness—The production of television films. Proceeds—For

filming and
543

—

Stephen,

Inc.,

50

Broad

St.,

Office—
Ingram,

New

York.

Ohio. Underwriter—

Realty Trust

C.

Morton

Funds

Underwriters

(same address)

investment. Sponsor

Films, Inc.
Price—$5.75. Busi¬

Akron,

Co.,
~

Municipal Investment Trust Fund, Series B
April 28, 1961 filed $15,000,000 (15,000 units) of interests.
Price—To be supplied
by amendment.
Business—The
fund will invest in
tax-exempt bonds of states, counties
municipalities and territories of the U. S. Proceeds—For

j

common.

(B.C.)

Underwriter—B.

Lord Jim's Service

—Keon &

Second Ave.,

June 21, 1963 filed
1,000,000 shares of beneficial inter¬
est. Price—$10. Business—A real estate
investment trust.
Proceeds—For investment. Office—141 Milk
St., Boston.

fice—26

•

moving equipment. Proceeds—For loan repay¬
working capital and other corporate purposes.

Office—1235

end investment company. Proceeds—For investment. Of¬

Offering—Indefinite.

investment.

Lafayette St., Denver. Underwriter
sociates, Inc. Denver.

Jan. 30,

Denver Club Building, Denver. Distributor—Nemrava &

Proceeds—For

industry and capital growth situations.

—677

—Industrial

Juniper

the

—

medical

porate purposes. Address—-Tel-Aviv, Israel. Underwriter
—Rassco of Delaware Inc., New York.

Co. (same address). /

fund.

Industries Fund, Inc.
Oct. 23, 1961 filed
25,000 common. Price—$10. Business
—A
closed-end investment
company
which plans to
become open - end. Proceeds
For investment in

Co., Ltd.
ordinary shares. Price—$55.
development company which
citrus plantations. Proceeds—For general cor¬

1963

Business

(same address).

Medical

Investment

production and working capital.
Madison Ave., New York.
Underwriter
Lambert &

mutual

firms. Proceeds—For loan
repayment, operating ex¬
and investment in other insurance concerns.
Address—714 Medical Arts
Bldg., Oklahoma City. Under¬
ance

Baltimore. Underwriter—Inves¬
America, New York.

Aug. 31, 1961 filed 125,000
Price

Price—$12.50. Busi¬
which plans to

writer—Lincoln Securities Corp.

"Isras"

Lunar

charge. Business—

A

Corp.

Feb. 28, 1963, filed
1,000,000 class B common. Price—
$1.25. Business—A holding company for three life insur¬

investment. Office

Hayward

Offering—Indefinitely
,

Medic

—4200

tors Planning Corp. of

•

postponed.

penses,

June

24, 1963 filed 66,500 common. Price—By amend¬
ment (max. $4.50). Business—Sale of encyclopedias, dic¬
tionaries, atlases, etc. Proceeds—For working capital and
sales promotion/ Office—6660 Biscayne Blvd., Miami,
Fla. Underwriter—Roman & Johnson, Fort Lauderdale,
Fla. Offering—Expected in early September.

N. Y. Underwriter—To be named.

company
invest in Israeli firms. Proceeds—For

Janus

March 13, 1963

•

folly

also

writer—None.

price

Fund, Inc.
18, 1963 filed 500,000

/Z.V.I

Press, Inc.

May 29, 1962 filed 60,000 common. I Price—$3.75. Busi¬
ness—Graphic design and printing. Proceeds—For pub¬
lishing a sales catalogue, developing a national sales
staff and
working capital. Office—812 Greenwich St.,

Israel

>

■

Marshall

Distributors, Inc. (same address).

ness—A closed-end investment

Street Co.

Hill
Oct.

None.

Israel American Diversified Fund, Inc.
April 22, 1963 filed 550,000 common. Price—Net asset
value.plus SV2%. Business—A new mutual fund special¬
izing in Israeli and American securities. Proceeds—For
investment. Office—54 Wall St., New York. DistributorIsrael Fund

Thursday, August 1, 1963

...

-

Ira Haupt &

—

Offering—Indefinite.

Co., Ill Broadway,

.

.

•

Mutual Finance Co.
June 10, 1963 ("Reg.

A")

$300,000

of

6%

convertible

subordinated debentures, series D, due
July 1, 1978.
Price—At par. Business—Engaged in various
activities
in the loan and discount fields.
Proceeds—For

working
capital and other corporate purposes. Office
Wallace
Bldg., Tampa. Underwriter
Donald V. Stabell, St.
Petersburg, Fla. Offering—Imminent.
1
—

•

Iowa

Public Service Co.

July 19,

(9/5)

1963 filed $12,000,000

of

Management Investment Corp.

first mortgage

bonds

due 1993. Proceeds—For loan
repayment and other

porate
Sioux

purposes.

City,

Address

Iowa.

Orpheum

cor¬

Electric

Bldg.,

Underwriters—(Competitive).

Prob¬

—

-

able bidders; Kidder, Reabody &
Co.-Blyth & Co., Inc.




—

Aug. 29, 1962 filed 2,000 common (with attached war¬
rants). Price—$500. Business—Company plans to fur¬
nish equity capital to firms in
the atomic, space and
missile fields, and provide
advisory and management

National Equipment & Plastics
Corp.
Sept. 28, 1961 filed 105,000 common. Price—$5. Business
—Operation of a cleaning and pressing plant and affili¬

counseling services

ated

on

a

fee

basis.^ Proceeds—For.

re¬

stores.

Proceeds—For

debt

repayment,-store

ex-

6286

Number

198

Volume

.

.

.

The Commercial and Financial Chronicle

Leith

-pansion and working capital. Address — Portage, Pa.
Underwriter—Cortlandt investing Corp., N. Y. Note—
This registration will be withdrawn.
National

•

Fence

Princeton

March

29, 1962 filed 100,000 common. Price—$8.75. Busi¬
Manufacture
of galvanized chain link fence
welded concrete reinforcing fabric, gates and related
Nov.

—

—

general corporate pur¬

Un¬

1962 filed

New

of

natural

gas

and

oil.

Campbell

Mines

Island

World

Fund,

Northern

("Reg. A")
of

75,000

travel and

investment,
St.,

Los

operate
acres

common.

Price

—

luxury hotel and resort facilities,

a

Office—3615

L.

Warren

home sites.

Olive

Co..

Proceeds—For

St., St. Louis.

Under¬

Louis.

St.

Foundation, Inc.
April 8, 1963 filed 100,000 memberships in the Founda¬
tion. Price—$10 per membership. Business — Company
will operate retirement centers for the use of rent-free
private homes and apartments by members upon their
retirement. Proceeds—For working capital, construction
and other corporate purposes. Office—235 Lockerman
St., Dover, Del. Underwriter—John D. Ferguson, Dover,

Blvd., Los

*

Del. Offering—Indefinite.

-

Richmond Corp.
Dec. 21, 1961 filed 142,858 common. Price—$7. Business
—A real estate investment company. Proceeds—For debt

Nuclear Science & Engineering Corp.
March 29, 1962 filed 100,000 common. Price—By amendment (max. $15). Business—Research and development

repayment and general corporate purposes. Office—220
K

St., N. W., Washington, D. C. Underwriter—HirscheJ
& Co.. Silver Spring, Md. Offering—'Indefinite. Note—
The SEC has challenged the accuracy and adequacy

contracts

using radioactive tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬

of this registration

ment

services.
Proceeds—For equipment, debt repayment, expansion and working capital. Address—P. O.
Box 10901, Pittsburgh. Underwriter—Johnston, Lemon &
Co., Washington, D. C. Note—This registration will be

•

Roadcraft

statement.

Manufacturing & Leasing Corp.

(8/15)
June 24, 1963 filed

100,000

common.

Price—$12. Business

—Manufacture of mobile homes and office trailers
the leasing; of mobile office trailers. Proceeds —

withdrawn.

Price—$1.

and

For
working capital, inventory, sales promotion, and expan¬
sion. Office—139 W. Walnut Ave., Gardena, Calif. Un¬
derwriters—Rutner, Jackson & Gray, Inc., and Morgan
& Co., Los Angeles.

Mining Co., Inc.
Business

—Mining.

Proceeds—For equipment and working capi¬
Address—Creede, Colo. Underwriter—None,

.

PMA Insurance Fund

Inc.

Rollins

Broadcasting, Inc. (8/12-16)
July 15, 1963 filed 166,376 common. Price—By amend¬
ment (max. $20). Business—Company and subsidiaries
own seven AM radio
stations, three VHF television sta¬

April 8, 1963 filed 200,000 common. Price — Net asset
value plus 4%. Business—A new mutual fund
specializ¬
ing in insurance stocks. Proceeds—For investment. Ad¬
dress
Fund

Plankington Bldg., Milwaukee. Underwriter—
Management Inc. (same address).
—

tions

and an outdoor advertising company. Proceeds—
selling stockholders. Office—414 French St., Wil¬
mington, Del. Underwriter—New York Securities Co.,
For

Pan American

Beryllium Corp.
Feb. 28, 1962 filed 100,000 common. Price—$5. Business
<—Company plans to mine for beryl ore in Argentina.
Proceeds

For

debt

—20 Broad

withdrawn.

Philippine Oil Development Co., Inc.
June 11, 1963 filed
325,000,000 capital shares to be offered for subscription by U. S. resident stockholders on

Russell Mills, Inc.
Sept. 28, 1962 filed 312,500 common. Price—By amend¬
ment
(max. $12).
Business—Manufacture of athletic
clothing, knitted underwear, children's sleepwear and

the basis of

cotton

corporate

t

writer—To be named.

purposes.

repayment, equipment, and other

Office—39 Broadway, N. Y.

Pension Securities Fund,

April

24,

Under-

—

Inc.

1963

—

St., New York. Underwriter—None. Adviser
—Smith, Barney & Co., New York. Offering—Indefinite.

one

new

share for each two held.

Price—By
amendment (max. 1 cent). Business—Exploration for oil
and gas in the Philippines. Proceeds—For debt
repay¬
ment, and operating expenses. Address — Manila, The
Philippines. Underwriter—None.

expansion.

-

formerly
•

'

—For

Selective

capital shares. Price—$4.75
a

new

type of

Office

—

2604

28,
to

B and
-

ate,
B

on

Financial

1962

filed

Corp.

500,000;

Selective

convertible de¬

($100).

For new products and
working capital. Office—328 S.
Beverly Dr., Beverly Hills, Calif. Underwriter—Samuel
B. Franklin & Co., Los Angeles.

Stein Roe & Farnham Foreign Fund, Inc.
July 1, 1963 filed 1,000,000 capital shares. Price—Net
set value.

Business—Company

as¬

recently formed and
Fund, Ltd., a Canadian
corporation. It will provide, investors a means of in¬
vesting in Canada, Western Europe and other foreign
was

will succeed to New York Capital

Proceeds—For investment.

areas.

Office—135 S. LaSalle

St., Chicago. Underwriter—None.
1, 1963 filed 30,000 shares of beneficial interest.
Price—$100. Business — A real estate investment trust.
Proceeds—For investment. Office—4900 Wilshire
Blvd.,
Los Angeles. Underwriter—None.
/;•' :

Teaching Machines, Inc.
April 1, 1963 filed 150,000 common. Price—$5 Business—«
Company develops and sells teaching machines ex¬
clusively for Grolier Inc. Proceeds—For loan repayment
and

N.

other

E.

New

corporate

Albuquerque.
York.

purposes. Office—221 San Pedro,
Underwriter—S. D1. Fuller & Co.,

Offering—Expected in late August.

■>,-

Tecumseh Investment Co., Inc.
Jan. 21, 1963 filed 48,500 common. Price—$100. Business
—A

holding

which plans to organize a life in¬
Proceeds—For investment in U. S.

company

company.

Government Bonds

and in new subsidiary. Office—801
Lafayette Life Bldg., Lafayette, Ind. Underwriter—Amo-

Inc.

sand

(same address).

Texas Plastics, Inc.

July 27, 1962 filed 313,108 common. Price—$3.50. Busi¬
ness—Operation of a plant producing plastic film and
packaging products.
Proceeds—For working capital.

Address—Elsa,

Texas.
fering—Indefinite.

Underwriter—To

be

named.

Of¬

•

Tokio Marine & Fire Insurance Co., Ltd. (8/1)
June 28. 1963 filed 400,000 American Depositary Shares.

Price—By amendment (max. $25 per A. D. S.) Business
—Writing of marine,,fire and casualty and allied lines
Address—Tokyo,
Japan. Underwriters—First Boston Corp., Nikko Securi¬
ties Co., Ltd.,| and Shelby Cullom Davis & Co., N. Y.

of insurance. Proceeds—For investment.

Top Dollar Stores, Inc. (8/5-9)
May 1, 1962 filed 200,000 common, of which 100,000 are
to be offered by company and 100,000 by stockholders.
Price—$6. Business—Operation of a chain of self-serv¬
ice retail stores selling clothing, housewares, etc. Pro¬
ceeds—For expansion, equipment and working capital.
Office—2220
Van
•

Florida Ave., Jasper, Ala.
Alstyne, Noel & Co., New York.

Underwriter—

Tourist Industry Development Corp.,

Ltd.

(8/26)1

March 29, 1963 filed $5,000,000 of 7% senior debentures
due 1983. Price—At par. Business—Financing of tourist

enterprises in Israel. Proceeds

—
For general corporate
Jerusalem, Israel.
Underwriter—.
American-Israel Basic Economy Corp., New York.

Address

purposes.

—

Transarizona Resources, Inc.
May 28, 1962 filed 500,000 capital! shares. Price—$1.50.
Business—Exploration, development and production of
the Lake Shore copper deposit near Casa Grande, Ariz.
Proceeds—For

ital.

equipment, exploration and working cap¬
E. 4th St., Casa Grande, Ariz. Under¬

Office—201

writer—None.

United Aircraft Corp. (8/6)
July 10, 1963 filed $42,884,000 subord. debentures due
Aug. 15, 1988 to be offered for subscription by stock¬
holders on the basis of $100 of debentures for each 15
common shares held of record Aug. 5. Rights will expire
Aug. 20. Business—Manufacture of aeronautical engines,
propellers and aircraft. Proceeds—For loan repayment.
Office—400 Main St., East Hartford, Conn. Underwriter
—Harriman Ripley & Co., Inc., New York.
United

Saran & Plastic Corp. Ltd.
25, 1963, filed $330,000 of 7% convertible deben¬
tures due 1975 and 16,500 shares of 8% preferred ordi¬
nary "B" shares to be offered in units consisting of two
$100 debentures and 10 shares. Price — $305 per unit.
Business
Manufacture of light household and office
furniture. Proceeds
For general corporate purposes.
Address—Rehovoth, Israel. Underwriter—Brager & Co.,

Feb.

Life

common,

for

two-thirds

held.

share

New

York.

Offering—Indefinite.

United Variable
Aoril
per

Annuities Fund,

for

each

class C share

Remaining 94,822 and

any

Inc.

il, 1961 filed 2,500,000 shares of stock. Price—$*0

share. Business—A

Investment.

Office—20

Underwriter—Waddell
Urethane of Texas,

of which 405,000
subscription by holders of the A,
C stock of Selective Life Insurance
Co., an affilithe basis of 4 company shares for each class A or
be offered

share and

par

—

(8/6)

Scheib, President. Office—8737 Wilshire Blvd.,
Beverly Hills, Calif. Underwriter—Shearson, Hammill &
Co., New York.^

are

Price —At

—

(Earl), Inc.

A..-1

Feb.

equipment, and working capital.




Scheib

E.

Powell Petroleum, Inc.
V':.'
r
"
Sept. 28, 1962 filed 100,000 common. Price—$5. Proceeds
drill for and operate oil wells.
Office—418 Market St., Shreveport, La. Underwriter—None.

brake unit for heavy duty automotive vehicles. Proceeds

was

Underwriter
Weeks, N. Y.
Note — This company
called Russell Manufacturing Co. Offering
&

28, 1963 filed 200,000 common. Price—By amend¬
ment (max. $12). Business—Company operates
(through
wholly-owned subsidiaries) a national chain of auto¬
mobile paint shops.
Proceeds—For selling stockholder,

Bonifant St., Silver Spring, Md. Underwriter—None.

Business—Company plans to manufacture

Address—Alexander City, Ala.

June

Proceeds—For investment. Office—880

Power Cam Corp.
Jam 28, 1963, filed 200,000

retirement and plant

—Indefinite.

—to
,

Proceeds—For bond

—Hornblower

July 6, 1962 filed 1,000,000 shares of beneficial interest.
Price—By amendment (max. $5). Business—A real estate
investment trust.

cloth.

-

Potomac Real Estate Investment Trust

.

■/

filed 500,000 common. Price—$100 initially; 'thereafter, at net asset value. Business—A new
mutual fund designed to provide an investment
program
for pension trusts. Proceeds—For investment. Address

.*■

*

New York.

Royaltone Photo Corp.
Nov. 29, 1961 filed 300,000 common, of which 100,000
are to be offered
by the company and 200,000 by stock¬
holders.
Price
By amendment.
Business — Developi
and
prints color, and black and white photographic
film. Proceeds
For equipment and working capital
Office—245 7th Ave., N. Y. Underwriter — Federman.
Stonehill & Co., N. Y.
Note—This registration will be

—

1969.

Business —
Manufacture and sale of custom hair pieces. Proceeds-!—

surance

Retirement

Price—By amendment (max.
Business—Writing of general life insurance.
expansion. Office—1840 North Farwell
Ave., Milwaukee. Underwriter—None.

Feb. 28, 1962 filed 900,000 common.

$2.

entertainment. Proceeds—

and working capital. Office—
Angeles. Underwriter—Costello,

of land for

due

Sutro Mortgage Investment Trust

27,

and

bentures

Feb.

Co., Beverly Hills, Calif. Offering—Indefinite.

writer—R.

Proceeds—For

tal.

offices, work¬
Office—801
Underwriter—

purposes.

Industries, Inc.

7th

construction.

share for each l1/^ held.

Outlet

capital

erect

$2.50).

■

corporate

—

1963 filed 280,000 common to be offered for
subscription by stockholders on the basis of one new

on

other

Corp, of Missouri (8/20)
1962 filed 125,000 class A common and threeyear warrants to purchase 1,250 class A shares to be
offered in units consisting of four shares and one war¬
rant.
Price
$32 per unit.
Business — Company will

Insurance Corp.

States Life

,

and

1962

West

Nov.

March 26,

,

Bis¬
Provident Management Co.

Resort

New World Distributing Co.

—

23,

and sell 80

ceeds—For investment. Office—4680 Wilshire

♦;

.

Stock

Recreation

Russotto &

Inc.

Angeles.
Underwriter
(same address).

capital,

For

21, 1963, filed 250,000 common. Price—Net asset
plus 8%%. Business—A new mutual fund. Pro¬

and working capital. Office
Bldg., Cleveland, Ohio. Under¬
Co., Cleveland. Offering — In¬
:: : /r'■

Underwriter—None.

411

A. C. McPherson & Co., Toronto.

investment

Z: "

Business—Sale

mining. Proceeds—General corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—

—

Proceeds—For

—1956 Union Commerce

Squire For Men, Inc.
July 9, 1963 ("Reg. A") $135,000 of 8%

Nov.

ment and

19, 1962 filed 215,000 shares of beneficial interest.
Price—$15. Business
A real estate investment trust.

&

•

Ltd.

Shaker Properties

Oct.

definite.

Sixteenth Ave., South Nashville, Tenn.
Tennessee Securities Inc., Nashville.

Proceeds

—

and

ing

Producing Co. (8/19-23)
180,000 class A common. Price—$5.

$6; to stockholders, $5.
Business—Company plans to en¬
gage in the consumer
finance, mortgage, general fi¬
nance and related businesses. Proceeds
For general
corporate purposes. Office—830 N. Central
Ave., Phoe¬
nix.
Underwriter—None.

writer— McDonald

—

2a

scribed shares will be offered
publicly. Price—To public,

Nassau

Office—195

sheet music. Proceeds—For construction of

Oct. 13, 1961 filed 475,000 common, of which 400,000 are
to be offered by the company and 75,000 by a stock¬
holder. Price—50 cents. Business—Exploration, develop¬

'

properties.

Underwriter—None.

—Company plans to engage in the recording and man¬
ufacture of phonograph records, and the publishing of
'

drilling expenses, working capital and other cor¬
porate purposes. Office—Tekoil Bldg., Oklahoma City
Underwriter—Peter Morgan & Co., N. Y.

'

J.

Recording Industries Corp.
July 19, 1963 filed 297,000 common. Price—$5. Business

—For

■r-

additional

marck, N. D. Underwriter

Inc.

Natural Gas & Oil

Sept. 7,

Business—Production

Feb.

of

ceeds—For investment. Office—316 North Fifth St.,

Kansas.

value

|land. Proceeds—For debt repayment, and ac¬

1962 refiled $8,000,000 face amount certificates ::j(same address).

28,

New

improved

Fund, Inc.
v."
:
April 11, 1963 filed 1,000,000 common. Price—Net asset
value plus 8V2%. Business—A new mutual fund. Pro¬

(series 20) and 300,000 common shares. Price—For cer¬
tificates, $762; for stock, $1.15. Business—A, mortgage
loan company. Proceeds — For general corporate pur¬
poses. Office — 113 S. Hydraulic, Wichita, Kan. Under¬
writer—National Mortgage Agency, Inc., (same address).
Note—This offering will be made only in the State of

;

real

quisition

Provident

derwriter—Security Brokerage Co., Billings, Mont.
National Mortgage Corp.,

Price—$25. Busi¬
property, chiefly un¬

common.

of

dentists. Proceeds—For debt repayment and work¬
ing capital. Address—100 W. Tenth St., Wilmington, Del.

11, 1962 filed 4,750,000 common. Price — $1. Busi¬
ness
Company plans to engage in cemetery develop¬
ment and to establish and operate a life and disability

Dec.

sale

and

Inc.

Association, Inc.
Jan. 8, 1963 filed 40,000 common. Price—$5. Business
—Company specializes in financial consulting, and serv¬
icing patients' accounts of member hospitals, physicians

Oct.

Office—13 S. Broadway, Red Lodge, Mont.

Securities

Professional Men's

National Memorial Estates

insurance concern. Proceeds—For

Lands,

1963 filed 40,000

St., Princeton, N.

products. Proceeds—For construction of a plant in Ire¬
land, and working capital. Office—4301 46th St., Bladensburg, Md. Underwriter—Netherlands Securities Co.,
Inc., New York.

poses.

28,

Research

ness—Purchase

(9/3-6)
ness

Flint, Mich. Underwriter—Farrell

Co., New York.

Inc.

Manufacturing Co.,

St.,

(461)

new

W.
&

mutual fund. Proceeds—For

9th Street, Kansas City, Mo.
Reed, Inc., Kansas City, Mo.

Inc.

Feb. 14, 1962 filed 250,000 class A and 250,000 common to
be offered in units of one share of each class.
Price—

$5.05
foams.

per
-

unit.

of urethane
working
capital,

Business—Manufacture

Proceeds—For

equipment,

of

unsub¬

Continued

on

page

30

30

The Commercial and Financial Chronicle

(462)

Continued

^ Brantly Helicopter Corp.

from page 29

23, 1963 filed 588,780 common to be offered for
subscription by stockholders on the basis of three hew
shares for each share held. Price—$50 cents. Business—
Production of a light two-place helicopter. Proceeds— ;
For/debt repayment, product development, working
capital and other corporate purposes. Office—1129 Club
House Road, Gladwyne, Pa. Underwriter—None.

expenses

—

Inc.

Valley Investors,

^

Jan. 23, 1963, filed 328,858 common. Price—$1. Business
—A new mutual fund. Proceeds—For investment. Ad¬

A- Bridges

dress—Sidney, Montana. Underwriter—To be named.
(8/19-23)

Warwick Fund

:

Fund

securities

posited

securities.:Business

mutual

fund

which

continue indefinitely

to

rities, and to seek long term growth pf capital and in-

.Office

—

3001,.Philadelphia Pike,; Claymont, Del.

Distributor—Wellington Co., Inc.* Philadelphia.
Waterman

Steamship Corp.

Aug: 29, 1961 filed 1,743)000 common. Price—By amend*;"
ihent.
Business—The carrying oU liner-type cargoes

purchase of vessels, and working capMbbile, Ala/: Under¬
writer—Shields/& Cd>,- Inc., N". Y.: Note—This registfa^
Office—71

/,*

"J'uly 25/

•

v

•

Business—Company,plans to erect
tain types of iron by the new

./

a mill to

produce

cer¬

4 + Handletnan
^

plant construction..and; general/ corporate Pur¬
poses. Address—Suite 4l2r413 Hynds Bldg^, Cheyenne,*
Wyo. Underwriter—C. B. Hoke Agency, Cheyenne, Wyo.
jrdte^-TheV SEC/Kas' issued an order temporarily sus- pending this:issue. -/r j■>/;:;//■ /'/. / ••'VX;-■
•v:■r/
/

>** •

V

• /■

i

V«.'

' k'

v

u

i.

f- *

/

'

'•'

'

'

•

*'

1 '

iiarc|i 8^^ i96$ :fiited $1^000,00$'
bentures due 1978 and

VX

conduct harness

vest

V//

None.'

S.

oeeds—For

debt
repayment and other corporate pur-;
Office—1005 First Ave., Asbury Park, N. J. Under
writer—To be named.

Corp.

class

on

A

the

shares

basis
held.

of, $500

debentures

for

each

estate.

-

Price—$500

-

Wyomont

Petroleum/Co.
("Regf A") 120,000

Business—Production
Proceeds—For debt

and

.

sale

of

enterprises.

repayment/construction, and work¬

ing capital. Address—P. O. Box 670, Thermopolis, Wyo.
Underwriter—Northwest Investors Service, Inc, Billings,

/ Montana. Note—The SEC has issued
ily suspending this letter.

an

order temporar¬

selling

Ave.,

cold proc¬
Office—1159

Lansing,

v?

•■/•/•••;•„

\

(8/27)

share

'

Mil National

100,000 common offered at $4
Young & Co., Inc., New York.

Oklahoma. Proceeds—For loan

re¬

100,000

Inc.; Salomon Brothers & Hutzler. Bids—
(11 a.m. EDST) at Chemical Bank New York
Trust Co., 20 Pine St., New York. Information Meeting
—Aug. 22 (11 a.m. EDST), same address.

/

Tower

July

(Minn.)

Proceeds—For

construction

75,000 common
New York.

loan

22,

tion

of

1963 ("Reg. A") 300,000 class A non-voting
Price—$l.,f Business—Production and distribu¬

ice

equipment,

cream

and

working

dairy products. Proceeds

—

For

capital and other corporate pur¬
poses. Office—4650 Idlewild Rd., Salt Lake
City. Under¬
writer—None.




Smith

Inc.-Kidder,

Peabody

per

share, by Lehman Brothers,

Light Co.

offered

at

101%

Pacific Light & Power Co.

100,000 preferred offered at $101.50 per share, to yield
4.65%, by Kidder, Peabody & Co. and Eastman Dillon,
Union Securities & Co., New York.
' ' ■ *
*
.

Rona Lee Corp.

$250,000
.

of

..."

6%%

■

convertible

subordinated

debentures

also 50,000 common of¬
share by Reuben Rose & Co., Inc., New

due June 30, 1973 offered at par;

fered at $4 per
York.

Corp.-Eastman Dillon, Union Securities & Co. (jointly);

Southern

Lehman Brothers-Riter & Co.

$70,000,000 of 4%% debentures due Aug/1, 2003 offered
at 101.234%, to yield 4.31%, by Lehman Brothers, Blyth

a.m.

(jointly). Bids—Expected

ED&T).

&

★ Blandy Corp.
July

&

Co.-White, Weld & Co. (jointly); Equitable Securities

Sept. *18 (11

common.

Fenner

at $21.25

first mortgage bonds due Aug. 1,
plus accrued interest, to yield!
4.56%, by Lehman Brothers, Bear, Stearns & Co., Salo¬
mon
Brothers & Hutzler, and Merrill Lynch, Pierce,
Fenner & Smith Inc., New York.
1993

repay¬

(jointly); Merrill

share by the com¬

of 4%%

$30,000,000

(9/18)

and

per

by

NuTone, Inc.

Pacific Power &

Co.

share

$20,000,000 of 5%% guaranteed dollar bonds due July
15, 1978 offered at 96.75% and accrued interest, to yield
about 6.08%, by Dillon, Read & Co., Inc., First Boston
Corp., and Smith, Barney & Co., Inc./New York.

29,

Power

Herbert

per

Nippon Telegraph & Telephone Public Corp.

1963 filed 60,085 capital shares. Price — By
amendment
(max.. $3.25). Business—Acquisition of oil
and gas properties, and the production of crude oil and
natural gas. Proceeds—For selling stockholders., Office'
—5455 Wilshire Blvd., Los Angeles. Underwriter—Gregory-Massari, Inc., Los Angeles.

&

common offered at $1.50
without underwriting.

pany,

Bld^., Youngstown, Ohio. Underwriter—None.

1993.

Corp.

Music Royalty Corp.

Co.

/

r

Greetings Corp.

ral gas in Texas and

Lynch, Pierce,

July 29, 1963 filed 37,500 shares of 6% cumulative con¬
vertible preferred. Price—By amendment
(max. $20).
Business—Consumer and dealer financing. Proceeds—
For working capital "and debt
repayment. Office—262
Spring St., N. W., Atlanta, Ga. Underwriters—Marshall
Co., Milwaukee, and McCormick & Co.; Chicago.

effective this week by the SEC. Offering

150,000 shares of 4%% preferred offered at $20 per
by Merrill Lynch, Pierce, Fenner & Smith Inc.,
New York/' '• /
lt: / */ ' ' ' / ,
/'///•

"

/

/

Inc.; First Boston Corp.-Blyth & Co.

,

v

Cooper Tire & Rubber Co.

Underwriter—

Mich.

—(Competitive). Probable bidders: Halsey, Stuart & Co.

"

/

$7,500,000 of 4%%; convertible subordinated debentures
due Aug. 1, 1983 offered at 102% plus accrued interest,
to yield 4.224%, by Goldman, Sachs & Co., New York,
and McDonald & Co., Cleveland.
V
i
/

ment. Office—15 S. Fifth St., Minneapolis. Underwriters

(9/16-20)

:

following registration statements, ifrere de»

July 30, 1963 filed $35,000,000 of sinking fund debentures
due 1988. Business—Production and distribution of natu¬

due

★ Atlas Finance Co., Inc.

Z

r

Zv t'ijr rf/v

American

July 26, 1963 filed $15,000,000 of first mortgage bonds

This

/

Proceeds—For

stockholders.

:/;'//,

^Northern States

Issues Filed With SEC

-/

Monday>■ issue of the "Chronicle./

:

(same address).

July 26, 1963 filed 200,000 common. Price—$3. Business
—Company plans tq engage in the exploration and de¬
velopment of Canadian mineral properties. Proceeds—
For general corporate purposes. Address-—402 Central

Price—$2.50.

petroleum products.

:

deiail$yWhef£avdilable

r':;'/::,///./'

/; /

jprijiji-:

The

★ Nordon Corp. Ltd.
common.

-

clared

it Mahoning Corp.

Proceeds—For

May 10, 1963

and sale of antibiotical

Aug. 27

100

per unit. Business—
debt, repayment and realty
acquisitions.: Office—10 East 40th St.v, N. Y. Underwrite?
—S. E. Securities, Iric.,: 10 East 40th
.Street, New York
Note—This registration will be withdrawn.
.;

Real

Pennsylvania

Stuart &

Jan.

stock

National

Bank Bldg./Minneapolis. :

Effective

payment, construction and working capital. Office—301
South Harwood St./Dallas. Underwriters — (Competi¬
tive). Probable bidders: First Boston/Corp.; Halsey,

poses.

A

Israeli

ic Lone Star Gas Co.

••

26, 1962 filed $4,500,000 of 6.5% convertible sud©rdinated debentures due 1977 (with attached warrants)
to be offered for subscription by stockholders of class

.

Insurance Co; of Minnesota. Address—1300 First

$20.

Manufacture of metal forms by

—

Proceeds—For

esses.

28, ,1961 filed 125,000. common.': Price—$4. Bushiest
—Design and manufacture ^fji Pi.c";|sion etectricai; and
«lectronic measuring devices and test equipment. Pro

Wolf

—.

July 15, 1963 ("Reg. A") 6,229 common and $150,000
of 5% convertible notes due 1968. Price—At-the-market.

racing with pari-

_

Price

A* Lansing Stamping Co.

Offering—Indefinite.

Inc.

Capital Life Insurance Co. of Minnesota; Proceeds—To
capital and /surplus of / United/ Capital ' Life

increase

com¬

Business

Electronics,

,

July 29,1963 filed $500,000 of 6% convertible debentures
due 1973 to be offered for subscription by stockholders
on ap unlimited basis. Price—By amendment: Business—
A holding company for United Investors Fund Corp. /(a
broker-dealer which sells mutual funds)/ and United

repayment/ research; work- /

writer—Israel Securities Corp.,

Dec.

•

securities? of

iri

betting/ Proceeds — For debt repayment and
working capital. Office—3 Penn Center Plaza, Philadel¬
phia. Underwriter—Stroud' & • Co./ Inc./' Philadelphia.

Winslow

k

(Minn.) /■/-'

investment. Office—17 East 71st St., New York. Under¬

mutual

_

-

July 29, 1963 filed 300,000 common. Price—$10. Business
—Fund plans to own stock of companies which will in¬

shares to be offered in units of. one $100 debenture
and 10 shares. Price—$220 per unit. Business—Company
to

ment

K

common.

it Israfund-lsrael Fund, Inc.

mon

has been licensed

Tower/Portland, Ore.

//,///:

A-Transpacific Group, Inc.

kon,'Iowa-. Underwriter—None.• ;_y/^vv///"i-i,////.'I

of

100,000 class A non-voting -

common.

Office—300 Jackson

Underwriter—None.

ing capital and,other corporate purposes. Address—Wau-

sell¬
ing? stockholder,Western Union;Telegraph, Co:; parent.
Office—60 Hudson St., New York. Underwriters—Aftiericaa-Securities. Corpi,/and GlDre, Forgari & Co,; New/
York. Offering—Indefinite, T./■;/,:
////

v/'•.:.///

6,000

it United Investors Corp.

; / /:.

1963:X"I^g. Af ) 15,000
Proceeds—For debt

serums.

Telegraph's

lhterhational ^telegraph: operations. ..Proceeds—For

William Penn Racing Association

stockholder.

?

v

Business—Research, development

forr stock $3.50. Business—Company

par/

-and operate Western' UriiQh

r

Price—At-theBusiness—Development, manufacture and sale
of precision test instruments/Proceeds — For a selling

Price—By amend-

common.

("Reg. A")

bridge, Detroit. Underwriters—E. F. Hutton & Co., Inc.,
Co., Inc., Detroit.

/July 16,

over

Proceeds—For

market.

Ailyn & Co., Chicago* Allen & Co., New
Dallas.; / * •
Co. (8/26-30)
/•//'/;/:/?fv• ;

Imilro fetologies, Ihc.

will take'

Price—$12.50.
in¬
Address—Suite

common.

company.

New York, and Baker, Simonds &

•

debenturi

24,000

July 26/1963 filed 155,000 common. Price—By amend¬
(max.'$15). Business—An insurance holding com¬
pany. Proceeds—For expansion. Office—520 S. W. 6th
Ave.,
Portland, Ore. Underwriter—None.- '
:

/

(8/27)

of suBordinated j^nvertible

truly 20, 1063 filed 330,000

Western Union international, Inc.

debentures, at

investment

deeds—For selling stockholders. Office—670 East Wood-

••• •

ft ri

>

.

Producing Co.

l!963 fiied $3,5dO,CK)0

writers—A. C.

—For

/

("Reg. A")

July 19, 1983

York; Metropolitan DaUas Corp.,

"Taylor. Process/' Proceeds

July 19, 1963
Business—An

it Space Research & Development Corp.

1, 197$. Price — By amendment.
Business-—Production of natural gas and its various by¬
products^ Proceeds—For debt repayment and working
capital. Office—1501 Taylor St., Amarillo/ Tex,. Under-

*

/'/; Western Steel,• lnc./?X/X/v/

:\../'X

v,.;v

/debentures due Aug.
;

Saint' Joseph St.,

tion will be Withdrawn.

value

it Dorchester Gas

Proceeds—For the

itai;:

25,

asset

July 26, 1963 filed $50,000,000 of notes due Aug. 1, 1985.
Price—By amendment. Business — A holding company
whose subsidiaries are engaged in specialized forms of
financing and insurance. Proceeds—For working capital.
Office—300 St./Paul Place, Baltimore. /Underwriters— /
Kidder, Peabody & Co., Inc.* and First Boston Corp.,
New York.
A- /• ;V/
4■ ////;// ; •://. ■»/
*• //////'

exchange its units for, additional contributions of secu¬
eoipe.

A Phoenix Capital Corp.

A Commercial Credit Co. (8/14)

A.new exchange type

plans. to

—

1963 filed 200,000 capital shares. Price—Net
vestment, and other corporate purposes.
(max. $10). Business—A new mutual fund. / 112, Osborn Plaza, 222 W. Osborn Rd., Phoenix/Under¬
investment. Office—8401 W. Dodge Rd.,
writer—None.
v/V
'\

July

Omaha. Underwriter—None.

the basis of one unit for each $100 of de¬

on

common. Price—$1.50. Busi¬
Company plans to explore iron deposits on its
property. Proceeds—For mining operations, debt repay¬
ment and operating expenses. Office—1218 N. Central
Ave., Phoenix. Underwriter—None.
1
/
ness

Proceeds—For

17, 1963 filed 300,000 units of participation in the
to be offered in exchange for certain acceptable

June

Thursday, August 1, 1963

July 24, 1963 filed5' 100,000

Fund, 1 Inc.

Investment

.

it Pacific Mines, Inc.

r

July

and other corporate purposes. Office
—2300 Republic National Bank Bldg., Dallas. ; Underwriter
First Nebraska Securities Corp., Lincoln, Neb
Offering:—Temporarily postponed.
leasehold

.

.

★ Old Florida Rum Co.

July

29," 1963

filed

subscription by

share

and

one

338,755

common

warrant,

Co., Merrill Lynch, Pierce, Fenner & Smith Inc., and!
Hutzler, New York.

common,

on

and

common,

warrants to

to be

offered

stockholders in units of
the

basis

of

one

/unit

one

for

Trailer Train Co.

■

$4,800,000 of 4V2% series equipment trust certificates,
series 3, due July 1, 1964-1983 offered at prices to yield
from

3.95%

to

4.65%, by Salomon

each two shares held. Price—By amendment (max. $4).

New York.

Business—Company is engaged in the production of

Therm-O-Disc, Inc.

and

other

alcoholic

j

Salomon Brothers &

purchase an additional 338,755
for

Bell Telephone & Telegraph Co.

beverages.

Proceeds—For

rum

working

124,072 common offered at $28.50 per share, by Goldman,

capital, loan repayment, sales promotion and equipment.

Sachs & Co., New York, and

Office—1035 N. W. 21st Terrace, Miami. Underwriters—

Uris

Pierce, Wulbern, Murphey Inc., Jacksonville, and Con¬
solidated Securities Corp., Pompano

Beach, Fla.

Brothers & Hutzler,

50,000
Loeh

McDonald & Co., Cleveland.

Buildings Corp.
common offered at $20.50
Inc.. New York.

& Co..

per

share, by Kuhn,

Volume

198

Number 6286

.

.

.

The Commercial and Financial Chronicle

(463)

ATTENTION UNDERWRITERS!
Do you have

Consolidated Edison Co. of New York, Inc.
1963 the company stated that it will have

May 22,

issue you're planning to register?
Our
Corporation News Department would like
to know about it so that we can
prepare an item

similar to
Would
write

an

those

at 25

us

at

us

Park Place,

REctor

2-9570

approximately $800,000,000 through the sale of
securities, to finance its five-year construction program.
addition, it will have to refinance $52,000,0u0 of
maturing bonds in the period ending 1967. Office—4
Irving Place, New York. Underwriters—To1 be named.
The last public bond
issue, in December, 1962, was won
at, competitive
bidding by Halsey, Stuart /& Co. Inc.
Other bidders were Morgan Stanley &
Co., and First
Boston Corp.
■'
" :
-'V", A
In

or

New York 7, N. Y.

j

;

Atlantic Coast Line RR.

(8/13)

Consumers
;

/R'/v"';

April 24, 1963 it

Power

Co.

//V/r>

Underwriters—(Competitive).

26,

Co.

'

-r";

reported that the company plans to
sell $20,000,000 of
straight debentures in the 3rd quarter

>/

Duke Power

1963,

Arthur B. Homer, Chairman, announced
that the company will embark on a
$750,000,000 capital
improvements program to be completed by 1965.
He'

*

7
•

Hawaiian

*

secured

ance

not

externally.

Mr. Homer added that
required until at least 1964. Office

be

Broadway,. New York. Under writers—To

York.

'■

:

\V//;/

,

Alakea St., Honolulu.
Co., New York.'

this "
25

be named. The

in May, 1955, was handled
Smith, Barney & Co., New
I: //'./////-,•;

/

aess—A motor vehicle
eastern states from

carrier

operating in nine

Co.,. Inc., New York.

Co.

New

of

ment

will

• Carolina
Freight Carriers Corp. (8/7)
July 5, 1963 the company applied to the ICC for permis¬
sion to offer 100,000 common. Of the
total, 24,000 will
be sold by the company and
76,000 by stockholders. Price
—By amendment. Business
A motor freight carrier
,

•:

Business

July 24, 1963 it

additional

in the U. S.

//

Rights will expire
Aug. 26. Price—$24. Proceeds—To increase capital funds.
Address—Toms River, N. J. Underwriter—None.
.

Florida

Power

—

March

Cleveland, O./Underwriters — (Competitive). Probable
bidders: Salomon Brothers &
Hutzler; Halsey, Stuart &

,

;

noon

stockholders,

St.,

for

construction.Office
York.
Underwriters

—

120

East

41st

—

Brothers-Salomon

Brothers

&

Hutzler.

Bids—Expected Oct* 3.
'

Communications

Satellite

cerns.

Series

no

hold
of

than

more

held

for

will

be

half

issued

carriers,

to

FCC-approved
the provision

with

shares

over

10%

per

of the

share.

Business—Congress has authorized

company to provide satellites and ground facilities
the
international transmission of
telephone, tele¬
television and other communications.- Office—

graph.
3029

Klingle Rd., N. W., Washington, D. C. Underwriters

—To be named.

'*"•[ /

/

den

last

1963.-

Proceeds—For construction.

St., Berlin, Conn. Underwriters—To
public offering/of bonds-on / Jan.

be

named. The

wants

the

bonds

; 7

to

be

sold at competitive
formed in December,
1962, to own and operate a 500,000 kw. atomic power
plant at Haddam Neck, Conn. Proceeds—For construction

bidding. Business—Company

of the

was

$70-$80,000,000 plant. Office—441 Stuart St., Bos¬

ton. Underwriters—To

be




of

named.

EDST) at

same

V

address.

(10/15)

Georgia Power Co.

ferred): First Boston Corp.; Lehman Brothers; Blyth &
Co.; Eastman Dillon, Union Securities & Co.-Equitable
Securities Corp. (jointl^); Morgan Stanley & Co. Bids
—Expected Nov. 7, 1963.

Gulf, Mobile & Ohio RR. (8/8)
June 12, 1963 it was reported that this road

plans to sell
equipment trust certificates. Office—104
St., Mobile, Ala. Underwriters—(Competi¬

of

bidders:

Salomon

Securities

&

& Hutzler-Eastman

Co.-Equitable

Dillon,,

Securities

Corpu

„

(Competitive)J

Stuart & Co. Inc.; First Boston Corp.; Harriman
Ripley
& Co.; Morgan Stanley & Co.; Lehman Brothers.
(Pre¬

Probable

South

Massachusetts Electric Co.

(11/7)

(Bonds): Equitable Securities Corp.-Eastraan Dil¬
lon, Union Securities & Co. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Shields & Co.: (jointly); Halsey.

tive).

reported

Jan. 16, 1963 it was reported that this
company plans ta
$10,000,000 of bonds in the fourth quarter. Office—
441 Stuart St., Boston. Underwriters —
Probable bidders:

Halsey, Stuart & Co. Inc.; First Bos¬
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.?
Eastman Dillon, Union Securities &
Co.; Kidder, Pea¬
body & Co.; Blyth & Co.-White, Weld & Co. (jointly)./

ton

ders:

Francis

Light Co.

that this subsidiary of
Utilities, Inc., may issue $25-$30,000,000
early in 1964. Proceeds—For construction. Of¬
fice—142 Delaronde St., New Orleans/ Underwriters—
(Competitive.) Probable bidders: Merrill Lynch, Pierce^
Fenner & Smith Inc.- Kidder,
Peabody & Co.-Harrimatt.
Ripley & Co., Inc. (jointly); White, Weld & Co.-Blytb
& Co., Inc.- Shields & Co.
(jointly); Halsey, Stuart &
Co.
Inc.; First Boston Corp.-Glore, Forgan & Co.
Middle

was

sell

and $7,000,000 of preferred stock in November
Proceeds—For construction. Office—270 Peacntree Bldg..
Atlanta. Underwriters
(Competitive). Probable bid-

St.

it

(jointly).

bonds

$3,900,000

Power &

1963

(jointly); Salomon Brothers

—

,

20,

Union

Jan. 22, 1963 it was reported that this subsidiary of The
Southern Co., plans to sell $30,000,d00 of first mortgage
.<■

Louisiana
Feb.

of bonds

approved by the U. S. District Court at Wash¬
ington, D. C. Business—Company is a leading domestic
producer of dyestuffs, chemicals and photographic ma¬
terials. Office—111 W. 50th St., New York. Underwriters
—(Competitive). Probable bidders: Blyth & Co.-First
Boston Corp. (jointly); Lehman
Brothers-Kuhn, Loeb &
Co.-Glore, Forgan & Co. (jointly); Bache & Co.

'

•;

Connecticut Yankee Atomic Power Co.
April 23, 1963 it was reported that the 12 utilities which
jointly own this new firm, have petitioned the SEC for
exemption from the Public Utility Holding Company Act
to permit the negotiated sale of
$55,000,000 of the firm's
bonds. The request has been opposed
by a major under¬

a.m.

Jersey Central Power & Light Co.

k

Address—Sel-

W. Scranton & Co.-Estabrook & Co.
(jointly).

who

Meeting—Sept. 26 (10

must be

20, 1960/ was
handled by Morgan Stanley & Co.-Putnam &
Co.-Chas

writer

Petersburg,

.

Connecticut Light & Power Co.
June 4, 1963 it was
reported that the company is con¬
sidering /the issuance of about $25,000,000 of bonds in
late

White, Weld
Dillon, Union Secu- \

rities & Co.-Salomon Brothers & Hutzler-Merrill
Lynch,
Pierce, Fenner & Smith Inc. "(jointly); Kidder, Peabody
& Co.; Harriman
Ripley & Co. Bids—Expected Oct. 1
(11 a.m. EDST) at 80 Pine St., New York. Information

Fifth

company. Mr. Kennedy
said that if General Aniline should be sold for
$200 mil¬
lion, the Government would receive about $140 million
and Interhandel about
$60 million. The settlement terms,
recently approved by Interhandel stockholders, also

that

remaining 50%. Price—Maximum

Office—101

General Aniline seized by the U. S. Govern¬
ment in 1942 as a German asset. The stock
represents
98% of the voting control of the

com¬

the

company's total shares can be
by these carriers, and no individual or group may

$100

the

II

common

Probable bidders: Halsey, Stuart & Co.
Inc.;
& Co.; First Boston Corp.; Eastman

l-for-20

a

;, over

voting shares, without par
value, will be divided into two series. Series I will be
issued to the public, firms that
produce space explora¬
tion
equipment and other, non-communications con¬

munications

repayment.

on

out-of-court agreement with Interhandel, a Swiss hold- X
tng company, designed to settle the 20-year old dispute
control of the 540,894 class A and
2,050,000 class B

Corp..

Feb. 20, 1963 it was
reported that papers of incorpora¬
tion have been filed for this
company, in Washington,
D. C. Company's common

shares

—

*

(Competitive). ; Probable bid¬
Morgan Stanley & Co.-First Boston Corp. (joint-:
ly); Merrill Lynch, Pierce,. Fenner & Smith Inc.-White,
Weld & Co. (jointly);
Halsey, Stuart & Co. Inc.; Blyth
Co.-Lehman

St.

the

common

Address —Madison

June 18, 1963 it was reported that the
company is con-;* June 12, 1963 company announced plans to sell
$9,000,000
sidering the public sale of about 25% of its stock. Busi¬
of debentures due 1988. Proceeds—For
construction. Ad¬
ness—Company is one of the leading advertising agen¬
dress—Madison Ave./ at Punch Bowl
Rd., Morristown,
cies in the U. S. with 1962
N. J. Underwriters
billings of about $130,000,000.
(Competitive). Probable bidders:
Office—247 Park' Ave., New
York;, Underwriter—To
Halsey, Stuart & Co. Inc.; White, Weld & Co.; First
/be named. It was reported that
Boston Corp.; Eastman
negotiations are being/
Dillon, Union Securities & Co.conducted with Merrill
Salomon Brothers & Hutzler-Merrill
Lynch, Pierce, Fenner & Smith
Lynch, Pierce, Fen¬
Inc., New York.
ner
& Smith Inc.
(jointly); Kidder, Peabody & Co.j
Harriman
Ripley & Co. Bids—Expected Oct. 15 (11 a.m.
General Aniline & Film Corp.
April 3, 1963 Attorney General Robert F. Kennedy an- 1 EDST) at 80 Pine St., New York. Information Meeting—
Oct. 10 (10 a.m. EDST) at same address.
nounced that the Justice Department had reached an V

ders:

&

South,

plans to offei
right to subscribe

announced

1963,

1990.

/

sell

New

in

and

refunding of outstanding 5%% bond®
Avenue, at Punch BowL
Rd., Morristown, N. J. Underwriters-— (Competitive).:

Foote, Cone & Belding, Inc.

money

Street,

company

sometime

$35,000,000 of external loan bond®
year ending March 31, 1964.

during the fiscal

construction

due

Fla. Underwriters—To be
rights offering in May 1959 was under¬
written by Kidder, Pea
body & Co., and Merrill Lynch
Pierce, Fenner & Smith, Inc., New York
•
./

Inc.
Bids—Expected
CDST) at abqve address.
to

the

named. The last

& / Co.

Columbia Gas System, Inc. (10/3)
May 6, 1963 the company stated that it plans
$25,000,000 of debentures in October to raise

1963

Corp.

for about 457,265 additional
basis. Proceeds—For loan

Office—547 W. Jackson Blvd.,
Chicago. Underwriters—
(Competitive). Probable bidders: Salomon Brothers &

(12

12,

'

■

,v'

Chicago Burlington & Quincy RR. (10/1), '/// ■/
May 20, 1963 the company announced tentative plans to
sell $5,000,000 of equipment trust certificates in
October.

October 1

r

Jersey Central Power & Light Co. (10/1)
July 16, 1963 the companyi announced plans to sell $18,525,000 of first mortgage bonds due 1993. Proceeds—For

.

Stuart

Kidder, Peabody &

;v// ■

It is expected that the
majority would be sold by Dec.
" 31, 1963. Underwriter—First Boston Corp., New York.* /

was reported that the bank is offering
its stockholders the right to subscribe for an additional
24,000 common shares on the basis of one new share
for each 19V2 held of record June 26.

Chesapeake & Ohio Ry.
July 16, 1963 it was reported that the company plans
to sell about $3,780,000 of
equipment trust certificates in
late September. This will be the second
instalment of
a
total $10,305,000 issue. Address
Terminal Tower,

Halsey,

/

1963 it was] reported that the company plan®
$10,000,000 of bonds in the first half of 1964. Of¬
fice—823 Walnut St., Des Moines.
Underwriters—(Com¬
petitive). probable bidders; First Boston Corp.; White,.
Weld & Co.; Halsey, Stuart & Co.
Inc.; Equitable Securi¬
ties Corp.;, Kidder, Peabody & Co.; Eastman
Dillon*
Union Securities & Co.; Lehman
Brothers; Blyth & Co.

an

First National Bank of Toms
River, N. J.

.;V:

Hutzler;

.

16,

—

operating in 13 states from Mass. to Florida. Proceeds—
For working capital.
Address—Cherryville, N. C. Un¬
derwriter—The Ohio Co., Columbus.

";11

,

to sell

be filed

shares.

mon

Co. Inc.

:

shortly covering about 100,000 com¬
—Development, production/and
sale of electronic
analog computers, precision electronic
plotting equipment and laboratory instruments. Address
Japan (Government of)
—Long Branch, N. J. Underwriter—W. C. Langley &
May 1, 1963 it was reported that the Government plan®
Co., New York.
'
/■:./ '_./■/
Jv*'•'-/// to sell

•/ /://'

<„,/

y

Iowa Power & Light Co.
Jan.

—

■

International Milling Co.

—

common

Vermont to Virginia. Proceeds—For

/ v////; /•/'''/'/A- ///:/•/
working capital/ debt repayment and advances to subreported that the company plans ,/ jidiaries. Office — Moonachie
Ave., Carlstadt, N. J.
$5,000,000 of convertible bonds in the U. S. Busi-K
Underwriter—Allen & Co.. New York.
-/ •
ness
Manufacture of cameras and other photographic
★ Electronic Associates, |nc. /
equipment. Proceeds—For expansion.'1' Address—Tokyo,
July 30, 1963 it was reported that a registration stateJapan. Underwriter
Yamaiehi Securities
—

Underwriter—Kidder, Peabody

,

to sell

■

Telephone Co.

quarter of 1964. Office-—30 Rockefeller Plaza, V July 8, 1963 the company announced that it expects t<* >,
New York.
file a registration statement
covering its first publie ;
Underwriters—(Competitive). Probable bid¬
ders: Halsey* s Stuart & .Co.
offering of common stock. The sale will include both a *
Inc.; First Boston Corp.;
Morgan Stanley & Co.; Stone & Webster Securities Corp.
primary and a secondary distribution. Business—Com-. Z
pany is one of the world's largest flour millers with
Eastern Freight Ways, Inc.
op- r
erations in five countries.-Proceeds—For
Oct. 9, 1962 the ICC authorized the
expansion, re- :
company to issue
search and debt repayment. Address —1200
Investor® i
100,000 common. Price—By amendment (min.
$5). Busi- • Bldg., Minneapolis. Underwriter

Canon Camera Co.
June 26, 1963 it was

York, Inc.

/
/

In the first

last public sale of securities

by Kuhn, Loeb & Co., and

Light Co.

June 2, 1963 it was reported that the
company plans to
offer stockholders in October the
right to subscribe for
an additional
$8,000,000 of common stock.; Office—1130

4

v

April 22, 1963 it Was reported that the company has tentative plans to issue
$50,000,000 of first mortgage bonds

said that approximately two-thirds of the
financing for
the program will be generated
internally and the bal¬
would

Co.1

Electric

April 30, 1963 the company announced plans to sell $15,—
$20,000,000 of securities in 1964 to help finance its $26,—
000,000 construction program. Office—176 Cumberland
Ave., Wethersfield, Conn. Underwriters
First Bostont
Corp., New York; Putnam & Co., Hartford; Chas. W^
Scranton & Co., New Haven.
/:///-:/7'::'//"///://.■/7//
—

t of

-

-

Stone

Corp.

Hartford

:

company announced

Steel

bidders:

Corp.; Lehman Brothers-Equitable ;
(jointly); Glore, Forgan & Co.-W. C. Langley & Co. (jointly); Lee Higginson Corp.
Securities

,

Bethlehem
Feb.

Probable

A Webster Securities
.

was

1963. Office—212 W.
Michigan Ave., Jackson, Mich.
plans to sell $4,- / Underwriters—(Competitive). Probable bidders:
Halsey,
575,000 of 1-15 year equipment trust certificates in -Stuart &
Co.. Inc.; White, AVeld & Co.-Shields & Co.
August. Office—220 E. 42nd St., New York. Underwriters ;■
(jointly); Harriman Ripley & Co. Inc.-First Boston Corp
—(Competitive). Probable bidders: Salomon Brothers &
(jointly); Morgan Stanley & Co., Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—Aug. 13 (12 '
Hutzler-Blyth & Co.-Lehman Brothers-Merrill Lynch,
noon EDST) at above address.
/V./•;
Pierce, Fenner & Smith Inc.;-(jointly).
'
1
'

July 16, 1963 the

'

Beaumont, Tex,

-

I Prospective Offerings
|

Utilities Co.

Jan. 29, 1963 the
company announced plans to sell 100,)00 shares of preferred stock
(par $100) in the second
half of 1963. Office—285
Liberty Ave.,

raise

you'll find hereunder.

telephone

you

Gulf States
to

31

Brothers

Halsey, Stuart & Co. Inc. Bids—Aug. 8 (12
at the company's
Chicago office.

&

Hutzler;

noon

/

„

Mexico (Government of)
July 16, 1963 following the public offering of $40,000,-^
000 of external bonds, it was reported that the Govern—
ment
is authorized to
sell
an
additional $65,000,000
,

of bonds in the U.
Loeb &
•

S. and abroad.

Underwriters—Kuhn,

Co., Inc., and First Boston Corp., N. Y.

Nevada

Power Co.

(10/16)

July 29, 1963 it

was reported that the company plans ta
$11,000,000 of first mortgage bonds in October.
Address—Fourth and Stewart Ave., Las Vegas. Under¬
writers—(Competitive). Probable bidders: White, Weld
& Co.; Eastman Dillon, Union Securities & Co.—Kidder
Peabody & Co. (jointly); Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith—Lehman Bros.—
Salomon Bros. & Hutzler.
Bids—Expected Oct. 16.

sell about

CDST)
Continued

on

page

32

The Commercial and Financial Chronicle

32

Continued from

.

company plans

to

Piedmont

October. Trans¬
State reg¬
ulatory authorities. Address—Fourth and Stewart Ave.,
Las Vegas. Underwriter—White, Weld & Co., New York.
New England Power Co. (11/19)
July 10, 1963 it was reported that this utility plans to
sell $10,000,000 of bonds and $10,000,000 of preferred
stock in the fourth quarter. Office—441 Stuart St., Bos¬
ton. Underwriters — (Competitive). Probable bidders:
(Bonds) Halsey, Stuart & Co. Inc.; Lehman BrothersEquitable Securities Corp. (jointly); Kuhn, Loeb & Co.;
Meirill Lynch, Pierce, Fenner
& Smith Inc.-Kidder,
Peaoody & Co.-White, Weld & Co. (jointly); First Bos¬
ton Corp. (Preferred) First Boston Corp.; Dean Wittei
& Co.-Smith, Barney & Co.-Wertheim & Co. (jointly),
Equitable Securities Corp.-Kidder, Peabod> & Co.-Lee
Higginson Corp.-White, Weld & Co. (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Smith Inc.
England Telephone &

140,000

in

Halsey,
Bids—

Harriman

(9/9)

Office—8 North Jefferson

St., Roanoke, Va. Underwriters—(Competitive). Prob¬
able bidders: Halsey, Stuart & Co., Inc.; Salomon Bros.
&
Hutzler.
Bids—Expected Sept. 9 or 10 (12 noon

company's Philadelphia

Pacific Ry.

office.

(12/10)

reported that this road plans to sell
about $4,800,000 of equipment trust certificates in De¬
cember. Office—120 Broadway, New York. Underwrit¬
ers—(Competitive). Probable bidders: Halsey, Stuart &
Co., Inc.; Salomon Bros. & Hutzler.
Bids—Expected
Dec. 10 (12 noon EST).
July 2, 1963 it was

(Minn.)
May 14, 1963 it was reported that the company plans to
offer about 771,110 additional shares to stockholders on
Northern States Power

Co.

$25,000,000.
Office—15 South Fifth St., Minneapolis. Underwriter—
To be named. The last rights offering in July 1959 was
underwritten by Merrill Lynch, Pierce, Fenner & Smith
l-for-20 basis in 1964, to

raise an estimated

:

Inc., New York.
Otter Tail Power

Co.

16, 1963 it was reported that this
to sell $10,000,000 of bonds in the fourth
—215 South Cascade St., Fergus Falls,

Jan.

plani
quarter. Office

company

Minn. Under¬

writers—(Competitive). Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co. Inc.; Glore, Forgan & Co.-Kalman & Co. (jointly); White, Weld & Co.
Pacific Telephone

& Telegraph Co.

will need $650
1966 to

billion construction program. This
means that the company must sell about $217 million of
securities a year, it was stated. Office—140 New Mont¬
gomery St., San Francisco. Underwriters—To be named.
help finance its $1.3

written by

the issue

Feb. 16, 1960 was under¬

Halsey, Stuart & Co. Inc. One other
tendered by Morgan Stanley & Co.

bid on

was

Pennsylvania Power & Light Co.

stated that it expects to sell
$75,000,000 of bonds in the period 1963 through 1967.
Proceeds
For construction and the retirement of $8,000,000 of maturing bonds.
Office—9th and Hamilton
Sts., Allentown, Pa. Underwriters—To be named. The
March 18, 1963 the company

—

last

sale

of

bonds

on

Nov.

29,

1961

was

won

at com¬

White, Weld & Co., and Kidder.
Peabody & Co.
Other bidders were Halsey, Stuart &
Co. Inc.; First Boston Corp.-Drexel & Co. (jointly).

petitive

bidding

Philadelphia

by

Electric

financing, from time to time, through the sale of bonds
common stock. Office—1000 Chestnut St,., Philadel¬

and

phia. Underwriters—To be named. The last sale of bonds
on
Oct. 15, 1959 was handled by Morgan Stanley &
Co, and Drexel & Co.
Other bidders were: Halsey,
Co.

Inc.;




4, 1963 it was reported that the company
sell $35,000,000 of 30-year first mortgage bonds

June

1964.

Proceeds—For

construction.

Office—900

plans to
in April,
15th

St.,

Denver, Colo. Underwriters — (Competitive). Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman, Ripley &
Co., Inc.-Eastman Dillon, Union Securities & Co.-Mer¬
rill Lynch, Pierce, Fenner & Smith Inc.-Dean Witter &
Co.
(jointly); First Boston Corp.; Lehman BrothersKidder, Peabody & Co.-White, Weld & Co. (jointly);
Blyth & Co., Inc.-Smith, Barney & Co. (jointly).
Public Service Electric & Gas Co.

(10/22)

July 23, 1963 the company announced plans to issue $40
to $50,000,000 of debentures due 1982 in October. Pro¬
ceeds—To redeem $36,000,000 of outstanding 3% deben¬
tures maturing Nov. 1, 1963 and for construction. Office
—80 Park Place, Newark, N. J. Underwriters—(Com¬
petitive). Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc.-Lehman
Brothers-Salomon Brothers & Hutzler (jointly); Blyth
Co.; Goldman, Sachs & Co.-Harriman Ripley & Co.
(jointly); First Boston Corp. Bids—Expected Oct. 22 (11
EDST) at above address.

&

a.m.

Rochester

Telephone Co.
May 7, 1963 the company announced plans to sell $16,000,000 of debentures in the first quarter of 1964, but
may do so earlier if market conditions are favorable.
Proceeds
For construction. Office — 10 Franklin St.,
—

Rochester, N. Y. Underwriters—(Competitive). Probable
bidders: First Boston Corp.; Eastman Dillon, Union Se¬
curities & Co.-Kidder, Peabody & Co. (jointly); Kuhn,
Loeb & Co.; Halsey, Stuart & Co. Inc.
Sears, Roebuck & Co.
19, 1963, Allstate Enterprises, Inc., subsidiary, an¬
nounced that it had delayed its plans to form a new
mutual fund until it received clarification of an SEC
Feb.

ruling which "has been construed by some to mean that
registered investment companies could not purchase
Sears'

stock or would be required to divest themselves
it, if Sears' itself owned a mutual fund." Earlier, All¬
said that the fund would be in operation late in
1963 on a "very small scale," and would be started on
a state-by-state basis as approval was granted. Office—
925 So. Homan Ave., Chicago. Distributor—Allstate En¬
terprises, Inc., Chicago.

of

First Boston Corp.; White, Weld

Southern

California

Edison

Co.

May 22, 1963, following the sale of $60,000,000 of first
and refunding mortgage bonds due May 15, 1988, the
company stated that it will need about $66,000,000 of
new money to finance its 1963-64 construction program.
A spokesman said that the company is considering the
sale of a minimum of $50,000,000 of debt securities in the
fall. Office—601
West Fifth St., Los Angeles. Under¬
writers—(Competitive). Probable bidders: Halsey, Stuart
&
Co.
Inc.; First Boston Corp.-Dean Witter & Co.
(jointly); Blyth & Co.-Lehman Brothers-Merrill Lynch,
Pierce,
Fenner
&
Smith
Inc.-SaJomon Brothers &
Hutzler (jointly).
Southern

Counties

Gas

Co. of Calif.

subsidiary of Paci¬

&

Lighting Corp., plans to sell $27,000,000 of first mort¬
gage bonds in the fourth quarter. Address—P* O. Box
2736, Terminal Annex, Los Angeles 54, Calif. Under¬
writers—(Competitive) Probable bidders: White, Weld
& Co.; Blyth & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith Inc.; Halsey, Stuart & Co. Inc.; First Boston
Corp.
Southern

Pacific

Co.

(9/4)

July 23, 1963 it was reported that the company plans to
sell about $7,500,000 of 1-15 year equipment trust cer¬
tificates. Office
165 Broadway, New York.
Under¬
—

address.

:

r

May 1, 1963 it was reported that the Diet had authorized
the sale of $20,000,000 City of Tokyo bonds in the U. S.
during the fiscal year ending March 31, 1964.
Under¬
writer—To be named. The last issue of Tokyo bonds in
March, 1927, was handled by Kuhn, Loeb
ing—Indefinite.
\
/•'
Transcontinental

& Co. Offer¬

Gas Pipe Line Co.

1963 it was reported that the company plans to
issue $30,000,000 of debt securities in September. Pro¬
ceeds—For expansion. Office—3100 Travis St., Houston.
Underwriters—White, Weld & Co., and Stone & Webster
Securities Corp., New York.
Ultronic Systems Corp.

May 28, 1963 it was reported that a registration will be
filed shortly covering the first public sale of this firm's
common
stock. While the size of the offering has not
been determined, it is said to be a relatively small deal,
involving over 50,000 shares. Business — Manufacture,
rental and service of the "Ultronic Stockmaster," a desk

provide stock brokers with instantaneous
stock and commodity market action of
capital. Address
—Pennsauken, N. J. Underwriter—Bache & Co., N. Y.
to

information

on

selected issues. Proceeds—For working

Union

Electric

Co.

19, 1963 the company stated that it plans to issue
$20,000,000 of preferred stock and $40,000,000 of bonds
by the end of 1964. Office—315 N. 12th Blvd., St. Louis.
Underwriters—(Competitive). Probable bidders: (Pre¬
ferred): First Boston Corp.; Dillon, Read & Co., Inc.;
Lehman Brothers;'-a White, Weld & Co.; Blyth
& Co.,
Inc. (Bonds): Halsey, Stuart & Co. Inc.; Lehman Brothers-Blyth & Co., Inc. (jointly); White, Weld & .Co.Shields & Co. (jointly); First Boston Corp.
March

Utah

fic

5, 1963 the company reported that it plans to
spend $478,000,000 for construction during the five-yeai
period 1963-67. It added that about half the money re¬
quired will be generated internally, and the balance
obtained by bank loans to be converted into permanent

&

Lynch, Pierce, Fenner & Smith, Inc.—White, Weld
Co.—Salomon Bros. & Hutzler (jointly); First Boston

rill

Jan. 2, 1963 it was reported that this

Co.

March

Stuart

ster Securities Corp.,

state

June 19, 1963 the company stated that it
million of new money in the years 1964 through

The last issue of debentures on

Union Securities & Co., Stone & Web¬
and Johnston, Lemon & Co. Other
the issue were Kidder, Peabody & Co.—Mer¬

Eastman Dillon,

Public Service Co. of Colorado

July 2, 1963 it was reported that this road has scheduled
the sale of about $6,900,000 of 1-15 year equipment trust

a

St., N. W., Washington, D. C. Underwriters—To be
On Feb. 19, 1963 the company sold $50,000,000
of bonds to Dillon, Read & Co., Inc.; Lehman Bros.,
nahled:

&

bidders: :Salomon

Stuart & Co. Inc. Bids—

(City of)

unit used

Corp.; Halsey, Stuart & Co.

that the company plans to

Halsey, Stuart & Co.;
Ripley & Co.; Blyth & Co.

Northern

Rip¬
Smith, Inc.

Dillon, Union Securities & Co.-Harriman

on

Probable

Halsey,

Hutzler;

&

Power

Light Co.
reported that this utility plans to sell
about $20,000,000 of bonds and $10,000,000 of preferred
stock in the second quarter of 1964.
Office—1407 West

July 2, 1963 it

Forgan & Co. (jointly);

the

St./ Frederick, Md.

if Potomac Electric Power Co.
July 30, 1963 the company stated that it will need $50,000,000 of new money in 1964 for its construction pro¬
gram and expects to do permanent financing in the early
part of the year. However, it has not determined the
amount or type of security to be offered.
Office—929

bidders

(Competitive).

&

The last sale of bonds on

E

$20,000,000 of debt securities to finance its construc¬
tion program for 1964 and 1965. Office—108 East Green
St., Ithaca, New York. Underwriters — (Competitive).
Probable bidders: Kidder, Peabody & Co. - Salomon
Brothers & Hutzler (jointly); First Boston Corp.-Glore,

at

Patrick

East

be named.

ley & Co.-Merrill Lynch, Pierce, Fenner &
(jointly).
\
'

Electric & Gas Corp.

September.

Office—200

Eastman

sell

for

sold.

Brothers

May 6,

May 8, 1957 was to a group headed by W. C. Langley &
Co., and First Boston Corp. Other bidders were: Halsey,
Stuart & Co. Inc.; Equitable Securities Corp.; White,
Weld & Co.-Shields & Co. (jointly); Lehman Brothers-

Underwriter—

Underwriters—(Competitive). Probable bidders:
Stuart & Co., Inc.; Salomon Bros. & Hutzler.
Sept. 11 (12 noon EDST) at the above address.

Norfolk & Western RR

this

1964, but has not determined the type of security to

be

writers—

Tokyo

common

Underwriter—To

if New York, Chicago & St. Louis RR (9/11)
July 30, 1963 the company announced plans to sell $6,540,000 of 1-15 year equipment trust certificates in Sep¬
tember.
Address — Terminal Tower Bldg., Cleveland.

EDST)

Thursday, August 1, 1963

.

Sept. 4 (12 noon EDST) at above

Inc.

May 14, 1963 it was reported that this subsidiary of
Allegheny Power System, Inc., plans to raise $12,000,000

V?' ,;

April 3, 1963 it was reported

Natural Gas Co.,

and Morgan

Potomac Edison Co.

Telegraph Co. (8/27)

Office—185 Franklin St., Boston.

certificates

rights offering on

Charlotte, N. C. Underwriter—White, Weld & Co., Inc.,
New York.'
--'V ..//

Rights would expire about Sept. 23. Proceeds—To repay
advances from A. T. & T., and for other corporate pur¬

New York State

a

1963

22,

stockholders

July 17, 1963 the company, 69.32% owned by A. T. & T.,
announced plans to offer stockholders the right to sub¬
scribe for about 2,099,858 common shares on the basis
of one new share for each 12 held of record Aug. 27.

poses.
None.

of common was

the company announced plans to offer
fall, the right to subscribe for about
shares on a l-for-10 basis. Business—
Distribution of natural gas in North and South Carolina.
Proceeds—For
construction.
Office—4301 Yancey R.,
July

approval by Federal and

Bids—Expected Nov. 19.
New

last sale

2, 1959, underwritten by Drexel & Co.,
Stanley & Co.

June

July 29, 1963 it was reported that the
sell about 120,000 common shares in
action is subject to

The

Co.

31

page

Nevada Power Co.

•

.

.

(464)

was

North Temple St., Salt Lake City. Underwriters—(Com¬
petitive). Probable bidders (bonds): Salomon Bros. &,
Hutzler; Halsey, Stuart & Co., Inc.; Kidder, Peabody &

Co.; Merrill
Lynch, Pierce, Fenner
&
Smith Inc.
(jointly); White, Weld & Co.-Stone & Webster Securi¬
ties Corp.
(jointly); First Boston Corp.-Blyth & Co.^
(jointly); Eastman Dillon, Union Securities & Co.Smith, Barney & Co. (jointly); Lehman Brothers-Bear,
Stearns & Co. (jointly). (Preferred Stock) White, Weld
& Co.-Stone & Webster Securities Corp. (jointly); First
Boston Corp.-Blyth & Co. (jointly); Kidder, Peabody &
Co.; Eastman Dillon, Union Securities & Co.-Smith, Bar¬
ney & Co.-Salomon Brothers & Hutzler (jointly); Leh¬
man

Brothers.

■

if Virginia Electric & Power Co. (12/10)
/
July 30, 1963 the company announced plans to sell $30,000,000 of securities, probably first mortgage bonds, in
December.
Address—Seventh and Franklin Sts., Rich¬
mond.
Underwriters—(Competitive). Probable bidders:
.

Halsey, Stuart & Co., Inc.; Salomon Bros. & Hutzler—
Goldman, Sachs & Co. (jointly); Eastman Dillon, Union
Securities & Co.—Merrill Lynch, Pierce, Fenner & Smith
Inc.—Lehman Bros,
&

(jointly); White, Weld & Co.; Stone
Corp. Bids—Expected Dec. 10.

Webster Securities

.

Light Co.
July 2, 1963 it was reported that this utility plans to
sell $20,000,000 of bonds in the second quarter of 1964.
Office—1100 H. St., N. W., Washington, D. C. Underwrit¬
ers
(Competitive). Probable bidders: Eastman Dillon,
Union Securities & Co.; Equitable Securities Corp.; Kid¬
Washington Gas

der, Peabody & Co.; First Boston Corp.;
&

Co.

Inc.

Halsey, Stuart

7:

'/

Western Transmission Corp.

April 17, 1963 it was reported that this newly-formed
natural gas pipeline company plans to file a registra¬
tion statement covering an undetermined
number of
common shares to be offered initially to stockholders of
U. S. Natural Gas Corp. Address—9601 Wilshire Blvd.,
Beverly Hills, Calif. Underwriter—None.
Western

Union

Telegraph Co.

6, 1963 the company announced that it had ar¬
ranged to borrow a total of $100,000,000 by sale of notes
maturing serially, one-third at the end of each of the
years 1964, 1965 and 1966. It plans to refinance the serial
notes by issuance of long-term debt securities, but has
not determined the terms or timing of the action. Office
March

—60 Hudson St.,
&

New York. Underwriters—Kuhn, Loeb

Co., Inc., and Lehman Brothers, New York.
Wisconsin Public Service Corp.

(10/8)

it was reported that this company
plans to sell $15,000,000 of bonds later this year.
Office
—1029 North Marshall St., Milwaukee. Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.; East¬
man
Dillon, Union Securities & Co.-Salomon Brothers
& Hutzler (jointly); First Boston Corp.; White, Weld &
Co.; Kidder, Peabody & Co. Bids—Expected Oct. 8.
March

19,

1963

Yale Express

System, Inc.

July 22, 1963 it was reported that the company had filed
an application with the ICC for permission
to sell $6,500,000 of convertible subordinated debentures and 400,000 class A shares. Business—A holding company for
subsidiaries engaged in motor

vehicle freight transporta¬

tion, nationwide freight forwarding, truck leasing, etc.
Proceeds—For loan repayment. Office—460 12th Ave.,
New York. Underwriters—Eastman Dillon, Union Securites & Co., and Hemphill, Noyes &
Offering—Expected in mid-August.

Co., New York.

Volume

198

Number

6286

The Commercial and Financial Chronicle

(465)

Indications of Current

The

following statistical tabulations

latest week

Business
AMERICAN
Steel

IRON

ingots

Index

of

for

AND

and

Activity

STEEL

castings

production

INSTITUTE:

(net

based

indicated

The

American

this

data

AMERICAN
Crude

steel

Iron

late

in

&

and

Kerosene

Steel

fuel

Resiaual

(bbls.

average

(bbls.)

average

•

Revenue

(bbls.)

output

(bbls.)__

output

(number

of

(U.

coal

Pennsylvania

S.

BUREAU

and

j

7,644,410
8,744,000
31.279,000
3.069,000

3,146,000

July 19
July 19

2,906,000

14,128,000

3,078.000

14.407,000

14,290.000

5,256,000

13,279.000

5,210,000

4,829,000

5,435,000

128,666,000

49,580,000

48.714.000

19

46,037,000

89,562,000

89,958,000

89,737,000

July 20

587 693

507,725

(no. of cars)—July 20

450,235

411,343

STORE

y

—

—

SALES

(COMMERCIAL

steel

Scrap

steel

(per

*2,460,000

9,815.000

353,000

146,000

442,000

290,000

$547,200

$596,900

$748,600

$463,400

(New York)

Lead

(St.

tZinc

(East

Aluminum
S.raits

MOODY'S
0.

St.

BOND

——*1;—;
—

222,600

7,386.000

.

353,800

293,100

264.800

243,100

456,500

198,600

183,500

446,400

194,900

10,100

3,700

103

93

17,925,000

16,635,000

"•

12,100

59,600

100

18,771,000

,

18,501,000

272

July 22
-July 22
July 22

—

6.279c
$63.33
<"v

July 26

_;

230

296

6.279c

6.279c

•

•

:;/>

at

6.196c

$63.33

$63.33

$66.44

$25.50

$25.50

$25.50

$26.50

30.600c '

30.600c

26

28.375c

30.600C >r /

30.600c

28.450c

28.425c

28.575c

11.000c

10.750c

(9.50 Jc

26

11.250c
11.050C

26

12.500c

: 12.500c

12.0.0c

12.000c

26

12.000c

12.000c

11.500c

11.500c

July 26
July 26

22.500c

A 22.500c

22.500c

24.C00-

113.875c

115.375c

115.875c

111.030c

.———July 30

89.22

88.97

89.34

88.01

88.81

89.23

91.77

92.64

90.34

90.77

-

-

"

V

'

10.800a

"

10.550c

"

26,910,000

294,054,000

317,479,000

286,433,000

unit
■

___

._

—

washer-dryers

1

_

.'

of

.

452,240

382,649

407,603

358,614

310,979

334,864

302,499

248.795

56,115

62.184

267,345
67,519

2,597

1,455

2,491

91,029

70,215

70,248

59,375

46,815

49,701

31,654

23,400

20,547

'

RAILWAY

Month

CAR

INSTITUTE—

June:

of

new

freight
Backlog of
(end

of

freight

cars

cars

Month

order

on

of

3,411
3,911

21,959

23,364

13,274

6,843,446

6,568,545

6,451,632

$299,600,000

$318,100,000

$291,800,000

$535,773,000

$525,297,000

$472,814,000

806,908,GOO

808,398,000

751,011,000

20,832,000
45,607,000

15,688,000
56,193,000

91,817,000

129,985,000

148,515,000

144,690,000

1,158,222,000

1,141,525,000

857,128,000

ASSOCIATION, INC.—

freight

BOARD

—

THE

FEDERAL

of

June

STANDING

OF

by

343

SYSTEM

omitted) A

ACCEPTANCES

FEDERAL

—

GOVERNORS

RESERVE

(000's

DOLLAR

NEW

transport

tons)

DEBITS

BANKERS

6,074

2,405

May:

(in

Month

2,349
3,701

undelivered
;

general

carriers

OF

and

month)

Intercity

BANK

'.

.

delivered——

cars

AMERICAN TRUCKING

YORK—As

of

OUT¬

RESERVE
June

BANK

30:

,

Domestic
Dollar

—

shipments

Domestic

warehouse

credits—.

goods

on

foreign

stored

and

shipped
__y_.

countries

Total
COAL

—

exchange

Based

9.300c

AVERAGES:

Bonds

corporate—

.uly 30

__

Group.

S.

BOND

91.77
90.34

EXPORT

(BUREAU

OF

24,783,000

between

:__

—July
July
July
.J—J\Uy
July
July
.—July

Utilities

Group
Group

Orders

.

COMMODITY

NATIONAL

received

$2,697,327,000$2,695,616,000$2,342,243,000

MINES)—

(tons)

Percentage

of

89.51

North

To

Europe

To

South

To

Asia

83.53

To

:90.20

Australia

88.81

90.06

88.40

3.88

3.94

Bituminous

Pennsylvania

4.50

4.50

4.47

4.64

4.29

4.23

4.36

30

4.39

4.39

4.36

4.49

purchases

Short

sales

sales

Total
Other

4.47

4.45

4.66

4.84

4.84

4.85

5.06

Oven

4.62

4.63

4.62

4.90

Beehive

365.3

h'/

4.47

■:<:*

A'

4.43

4.40

4.44

4.41

371.3

372.1

;A;A

4.50

V

•
,

371.2

343,429

276,350

358,862

July 20
July 20
July 20

352,869

345,301

229,828

369,080

332,532

63

July 26

99.25

96

547,283.
i

which

93

507,233

t

524,921

■-

*99.29

112.49

100.82

initiated

off

the

Other

sales

Short

sales

(

Other

sales

Total
Total

initiated

Short

sales

Other

sales

Total

STOCK

2,127,540

831,790

July
July

642,540

5

1,548,600

2,144,410

5

2,011,480

2,670,630

5

463,570

5

256,580
44,400

5

228,130

537,850

5

272,530

585,900

926,040

5

864,060

1,492,233

643,830

for

account

EXCHANGE

(customers'

Number

of

by

967,530

160,900
765,140

purchases by

ROUND-LOT

EXCHANGE

July

5

830,725

961,070

1,255,983
1,549,963

796,050

July
July
July

5

2,871,783

4,020,340

5

642,520

721,480

5

2,472,215
3,114,735

ACCOUNT

round-lot

SALES

OF

ON

of

THE

Y.

Other

666,980

3,496,120

5,904,863
1,286,670
4,632,073

2,546,650

4,217,600

5,918,743

3,381,380

3,051,200
834,730

5

1,044,385

1,325,022

1.815,616

1,536,114

5

$57,284,033

$70,615,112

$92,377,014

$70,821,945

2,261,654

1,046,955

1,135,508

1,638,244

July
July

5

15.962

17,817

16,004

5

1,119,546

989,845

5

$56,573,370

1,620,427
$81,951,450

2,245,650

July

$106,916,417

$51,642,031

July

5

July
July
July

57,110

379,960

697,830

884,210

202,290

5

379~960

69~7~830

884~210

202,290

5

296,250

304,860

420,080

693,780

5

Total sales

;

U.

S.

DEPT.

797.190

——July

5
5

13.369,730
14,166,920

925,560

1,553,420

1,306.020

19,420,200

26,459,340

12,957.470

20,345,760

28,012,760

14,263,490

OF

All

Group—

._.

foods

,
.

Meats
All

♦Revised
on

i

commodities

figure.

other

than

tNumber

delivered basis

at




farm

of

and

orders

foods

not

since

(net

tons)

>

'

OF

NEW

closed

Shipments

i;

5,056,197

*4,827,536

4,963.844

*4,740,933

4,453,176

92,353

*86,603

2,791,516

♦3,185,614

57,201
3,774,885

$2,049,000

$2,084,000

$1,878,000

4,510,377

YORK
1

COMMERCE):

SALES

SECOND

DISTRICT
NEW
of

OF

of

19,305,000

19,402,000

19,491,000

15,767,000

15,737,000

16,869,000

7,833,000

7,856,000

8,481,000

391.6

392.8

424.0

116

114

105

120

119

108

FED¬

FEDERAL

YORK—1957-59
June:

daily) unadjusted
seasonally adjusted)—

TION)—Month
Contracts

37,673,000

1,682,000 M ">&339,000

OUTSTANDING—FED¬
omitted)

STRUCTURAL

STEEL

(AMERI¬
r/v

STEEL

CONSTRUC¬

June:

(tonnage)—estimated-

(tonnage)—estimated

344,734

409,104

291,621

359,950

390,332

348,787

FACTORY

EARNINGS AND HOURS—WEEKLY
AVERAGE ESTIMATE — U. S. DEPT. OF
LABOR—Month

of

June:

Weekly earnings—
manufacturing

Durable

fdli—

.

:

$100.61

goods

Nondurable

goods

*$99.47

$97.27

109.15

♦108.62

105.47

88.80

*87.91

87.02

40.9

*40.6

41.5

♦41.3

41.2

40.0

39.6

40.1

$2.46

$2.45

$2.39

2.63

*2.63

2.56

2.22

2.22

2.17

Hours—
All

manufacturing
goods

goods
earnings—

manufacturing

Durable

goods
Nondurable goods

40.7

INDUSTRIAL PRODUCTION—BOARD OF
GOV¬
ERNORS
OF
THE
FEDERAL
RESERVE
SYSTEM
of

1957-59

—

Average=l00—Month

June:

Seasonally adjusted
Unadjusted
METAL

OUTPUT

Month

of

____

—-—-

(BUREAU

OF

125

124

118

127

*125

120

MINES)—

May:

production

(in

,

of recoverable

fine

(in

Copper

'

,

metals in

the

ounces)

fine

(in

July
July
July
July

23

100.5

100.5

100.1

100.3

23

97.3

*97.1

95.1

96.3

23'

102.4

*102.4

100.9

100.9

23

95.9

95.1

91.7

98.3

.-July 23

100.6

100.6

100.5

100.7

centers where freight from East St.

Louis

tons)

(in

short

tons)

Zinc

(in

short

tons)

ESTATE

Savings

OF

and

Insurance
Banks
Mutual

and

—.

FINANCING
U.

S.

loan

—

of

IN

HOME

May

LOAN

Total

113,868

24,055

*20,825

25,032

45,675

*45,712

43,564

$1,497,350

$1,412,080

$1,350,350

116,035

111,936

99,961

V

companies.

lending

117,211
3,404,973

*105,272

BANK

companies
trust

*125,043
*3,059,011

104.821

(000's omitted):

associations

savings banks

125,777

2,998,253

NONFARM

—

Individuals

introduction

of Monthly Investment Plan.
JPrime Western Zinc
exceeds one-half cent a pound,
(a) Not available.

ounces).

short

Lead

Miscellaneous

reported

41,210,000

'1,783,000

May:

—___'

BOARD

STORE

BOARD—Month

products

Processed

PAPER

INSTITUTE

AREAS

commodities

Farm

CAN

REAL

LABOR—(1957-59=100):
Commodity

of

tons)

30 .(000's

FABRICATED

Gold

5

July
—

"

United States

July
,

WHOLESALE PRICES. NEW SERIES

(net

RESERVE

Silver
;

—

168

1,988

39,250.000
'

—————

Average=100—Month

Mine

STOCK

sales—

sales

tons)____.

tons)

tons)

RESERVE BANK OF

All

TRANSACTIONS
(SHARES):

MEMBERS

507

Nondurable

5

47,313

632

_______

Active spindle hours (000's omitted) June 29
Active
spindle hours for: spindles in place
June
29

STOCK

Short sales

(net

(net

SPINNING (DEPT. OF

Hourly

,_July

62,968

11,366
5,325

Spinning spindles in place on June 29—
Spinning spindles active on June 29
:

All

shares
N.

COTTON

Durable

July
July

sales

ROUND-LOT

302,260
/

purchases)—t

dealers—Number

STOCK

AND

63,120
239,140

129,070

sales

Round-lot

279,830

293,980

5

112,437

24.930

169,216

MINES)—Month
\y

tons)

RESERVE

June

(average

147,210

Short sales
Other

of

(average

813,860

dealers—

shares—Total

As

Sales

695,485

Dollar value
sales

COMMERCIAL

Sales

COMMISSION

Odd-lot purchases by dealers
(customers' sales) —
Number of orders—customers'
total sales
Customers' short sales
Customers' other sales
Round-lot

OF

lignite

Oven coke stocks at end of month

1,640,530

FOR ODD-LOT ACCOUNT OF ODDAND
SPECIALISTS ON N. Y. STOCK

DEALERS
EXCHANGE — SECURITIES

coke

2,283,070

5

of members—

194,986

35,051
287,450

—

_,

MINES)—Month

(net

2,610,950

5

;

*

J.

:

<

OF

(net

3,442,740

48,050

TRANSACTIONS

FOR

-

701,753
135,240

July

Odd-lot sales by dealers
Number of shares
Dollar value

Total

3,445,100

526,220

i^l^iJuly
July
July

sales

LOT

TOTAL

2,692,710

462,880

■

sales

Total
•

1,913,450

the floor—

on

round-Jot transactions
purchases

5
5

July
July
July
July

salesj

Other transactions
Total purchases

and

anthracite

coke

ERAL

July
July

floor—

purchases
Short sales

Total

—

;

DEPARTMENT

registered-—

sales

transactions

tons )

tons)__

(BUREAU

coal

Production

ERAL
i

553,879

tons)

4.53

July 20

92

(net

.

(net

(net

;

;

Total

tons )

tons)

(BUREAU

30

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS

Other

COKE

30

ROUND-LOT

Total

COAL OUTPUT

30

—July 30

-

in

America

>

;

3.94

4.29

4.45

orders

stocks

(net

339,699

—

Central

America

87.18

anthracite

—

( net

87.05

30

July 30

(tons) at end of period
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1959 AVERAGE=100

in

Pennsylvania

and

81.54

ASSOCIATION:

specialists

of

tons)

To

88.95

30

4.42

activity

Transactions of

(net

90.77
86.65

.

May:

84.17

89.64 '

3.9i

30

(tons)

Production
Unfilled

INDEX

PAPERBOARD

..A

of

exports

'*of June:

Group

MOODY'S

S.

84.30
89.78

•<•>.-89.51*/

July 30

Baa

Industrials

j.

V.

U.

86.91

...

AVERAGES:

Average.. cerporate-^———

Public

89.92

—July 30

—

y-

87.18

Month

y

89.23

84.30

—July 30
DAILY

,

89.23

July 30
July 30

1

YIELD

.

july 30
—July 30

Government Bonds

Railroad

88 81

—July 30

Utilities

MOODY'S

sold

29,809,000

—_____

—;

__L_

AMERICAN

269

26

at

Group
Industrials ' Group
"

-

32,491,000

June:

factory

-

——.____!

OF

JUly
—_
-July
July
—July
July

DAILY

10,000

32,249,000

export

QUOTATIONS):

99.5%)

7.000

36,070,000

v.

&

—July 25

at

PRICES

of

appliance

others

Electric
Gas

;

98

July 27

DUN

_

York)

and

30,330,000

10,000

32,593,000

*

.__

semi-automatic

and

221,437,000

34,413,000

•

Public

U.

and

Wringers

252,077,000

234,289,000

31,948.000

MANUFACTUR¬

—

Automatic

'

at

Government

o.

Average

Railroad

T

laundry

268,700,000

228,270,000

;

_

domestic

(domestic)

Washers >

'

at)

(New

home

sales

260,228,000

—

(barrels)

LAUNDRY

Exports

Louis)

(barrels)

ASSOCIATION—Month

Total

-

.

J.

imports

HOME

New

312,500

July 20
„i

at

(primary pig,

tin

ERS

RESERVE

at

Louis)

(delivered

Zinc

AMERICAN

copper—

Domestic ref.nery
Export refinery at

Lead

i

July 25
July 25

——

*

ton)

M.

—„

T

Orders

.July 25
July 25

1'i

lb.)

&

558,118

446,838

PRICES:

gross

(E.

599,220

519,527

8,920,000

—

-

ton)

gross

PRICES

Electrolytic
V

;

(per

(per

Ago

Dryers

July 20

-

COMPOSITE

Year

Month

gal¬

(barrels)

output

consumption
(barrels)

48,099,000
85,969,000

—July 20

.

INDUSTRIAL)

BRADSTREET, INC.

Previous

Month

ENGINEERING

INDEX—FEDERAL

AND

—

(barrels of 42

output

(barrels)
imports
(barrels)

product

Combination

:
;

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)_—

METAL

113,161,000

oil

Indicated

30,700,000

31,652,000
131,163,000

SYSTEM—1957-59 AVERAGE=100

Pig iron

Refined

8,450.000

184.031,000

Municipal

EDISON

AGE

8,647,000
31,760.000

3.0,329,000

19
19

Latest

INSTITUTE—Month

output

Crude, .oil

7,248,060

194,915,000

—:—.—

PLANNING

—i,—

DEPARTMENT

Finished

7,541.410

30,840,000

234,700
and

Federal

IRON

7,567,760
8,845,000

32,876,000

(tons)

ADVANCE

crude

gasoline

Benzol

192,181,000

:

FAILURES

Domestic

51.5

MINES):

Private
State

0.755

33,130,000
133,308,000

NEWS-RECORD—NEW SERIES (000's omitted):
advance planning by
ownership.

I.

0.63

191,468,000

Total

.

0.605

19

lignite (tons)—

anthracite

CONSTRUCTION

OF

PETROLEUM

of'April:

19

cars)-.

freight received from connections

OUTPUT

Bituminous

AMERICAN

OF AMERICAN RAILROADS:

freight loaded

Revenue
COAL

80.7

uly 19
,uly 19
".uly 19

.

ASSOCIATION

124.2

104.1

July 19

-

;

Ago
1,504,000

domestic production
lons
each)

refineries, bulk terminals, in transit, in pipe lines
Finished gasoline
(bbls.) at
—July
Kerosene (bbls.) at——
—.-July
Distillate fuel oil (bbls.) at
July
Residual fuel oil (bbls.) at—
—;
——July
Unfinished oils (bbls.) at—i.-.—w—'—-—.
July

„

Ago
2,313,000

Total

of

Stocks at

'

Year,

Natural

output—daily

(bbls.)

oil

fuel oil

99.6

July 27

(bbls.)

output

Distillate

—July 27

(per cent capacity).
Institute discontinued issuing

on

Month

INSTITUTE:

condensate

output

1,939,000

operations

42 gallons each)
Crude runs to stills—dally

Gasoline

Week

1,856,000

production

•

1960

FETROLEUM

oil

July 27

weekly

average
;

cover
production and other figures for the
Dates shown in first column are either
for the
that date, or, in cases of
quotations, are as of that date:

month available.

or

month ended

or

Previous

Week

tons)

on

1957-1959-

Unofficial

vveek
Latest

33

institutions—

'

562,763

539.341

534,018

167,803
311,176

145,435
300,627

313,671

577,729

555.854

531,152

$3\065,273

$2,983,409

154,257

V
$3,232,856

"

.

I

The: Commercial and Financial Chronicle

to medical

and INDUSTRY

STATE of TRADE

,^pnti^«edjrpm page J4
do''

,tbe

418,060

totaled

Il Lnc&rs t

c

in-

ail

for

£IL,nriinff neriod of
riTiTn04
or 36 6%
"2'°®'LdTne ZHod in

week last

Department store sales on a

casualties, country-wide basis as taken from

in-

$5,000, the Federal Reserve Board's

under

losses

with

those

CfeaSe,u°

?0R96
1®62'

,

1961. There

-

,

#

week..

Q

pared w
week

d
1

?n<*

1

ln

'

Up for Fifth

Tonnage

Truck

1962

Consecutive Week Over

-

Commodity Price Index

wholesale

.

.

......

vpars

traffic in this

type
eon

c ass

originating this
thi«5

in

^

6

were

systems

railroad
'

also rose, to 235 from

cars

^

Drops Lowest
Lowest Since
Since Early
1961
Drops
liariy i»oi

couraging weekly trend in a row.
® °
J

.

...

These

slQwdown

Re-

Federal

the

to

SifSNSSrtflS
week ended Jllly 20> gained 9%

Daily Wholesale

'

areas

re^eding

34 metropolitan
conducted by the ATA De-

j,

partment of Research
port
fleets
4,1—

than
mon

..

handled at more
+v,,ir>lr
nf pnm400 truck terminals of comcarriers of general freight

Qff

-

—

Mon-

below

fell

notwithstanding the N.
City
Q 07.L Y.
I
A. 07*
sales tax hike from 3% to 4%
commencing last June 1. No one
can su(rmise, however, how much
higher it might have been in the
absence of the sales tax rise. The
four-week N. Y. C. flash figure
COIACI

was

level of 272.08

A

record of $5.98 set a

,,

Ten years ago, Dr. Yang became

naturalized

a

compared

the

year-ago

00

in

maintained

according

o

year>s

2 1,

to

wee

,

reports from regional associa

ion|.

this

citizen,
he

year

this

far

(Jan.

year

to

1

(adjusted) over that

the 1963 creased 4%

week ago, the

rung up

0.5%

a

corre- Department of Commerce, put

the

the

the ju]y 20-ending week's total sales

continuing

/ date,

Sp0nding

margin over by the Bureau of the Census, U.-S.

for

$5.92

Following
weeks

board

feet

indicated:

Production

__

Shipments
orders

and

1963

193,392

173,282

22X4

a

207,448

199,315

227^882

function

220,397

207,504

Output

Soars

total of the price week period

resents the sum

1963

206,546

_

Electric

latest fourshowed a gain of alpound of 31 raw foodstuffs most 4%—or three
percentage
meat in general use. It is not points less than department store
Index rep- year contrast for the

Wholesale Food Price

per
July 21

July 13

July 20

.New

figures in
for the

the

are

of

Its chief sales for the same period.

cost-of-living index.

the general
food prices at the wholeis

^end of

show

to

Dr. Yang

sale level.

12.8%

V.-P. of

AU

«JeeRecoLrdVHigh
+

,

p

,

r-.,

clearances

Although

„

P-ed Dominick Firm

gave

Dillon,

Read

Co.,

&

Boston

First

associates

and power

industry for the week

*ZJJ ItT«77,
nnnynnn\whS
18,771,000,000
kwh. S
ac-

timated at

Institute.

kwh.

Edison: Electric

the

to

cording

Output

more

270,000,000

was

the

than

25, snotty weather conditions

kept retail activity at a level only
,

«

total

of

kwh. above

aeo

^tsWearflouri4ed Tn

Actlve
-Po^tswear nouri.nea
second major summer heat
-

.

.

.

.

_

.

.

East and mid-

b^Hng the

18,501,000,000

kwh., and 2,136,000,000

vear

a

the

previous
waye

week's

than

higher

TT"li:"

B°ard °f Dominick & Dominick,

" Wall
Street New York City
announced the election of

has

°r. Ho-Ching
Y a n 6 Dy»api_
as a

Corp.

Y*ca

dollar

Corp.

bonds

dent

Presiand di-

output of the comparable
or

iyoz

oil

or,

an

■

1

Failures

Business

Rebound

From

Prior Week's Downturn

Continuing to follow

an uneven

.

,

TT

,

.

tourist

However,

ume.

,

and

business
continued
boom, along with car sales.
taurant

to

as

to

of the United States

requested the

Congress to enact legislation im¬

posing

The total dollar volume of re-

of

securities

of

issuers

foreign

United States persons. If
should

legislation

enacted

be

the terms described by

in

the Treas¬

ury

Department, all purchases of

the

bonds, whether

or

distribution

the

initial

thereafter,

would

of

from the

chase

by
a

made in the

tax, except that any pur¬
after

made

Sept.

States

United

a

exempt

be

1963

16,

tail trade in the week ended in
failures bounced back to 272 in the
Wednesday statement week
the week ended July 25 from the ranged from 2 to 6% higher than
downswing to 230 in the preced- a year earlier, according to spot
ing week, reported Dun & Brad- estimates
collected by Dun .&
street,

Inc.

An

irregular

pattern

Bradstreet, Inc. Regional estimates

o^f weekly ups arid downs has per-

vaided

Casualties6^ ^he6current

Ievels by the £o,lowinS percent-

edged slightly higher than
ago

week
a year

when 269 occurred but they

remained
the 319
low

the

considerably short of

in

1961

and.were.7% be-

pre-war

1939.

of

291

in
-

Failures

$100,000

total

or

involving liabilities of
more




comparable

from

Dr.

foreigner would be subject to a

tax

purchaser,
the purchase price. The

based

rate

on

of

the

by

payable

would

tax

before

purchases

10.3%

be

15,

Jan.

and

lesser

the

remainingMiMe

on

1965,

rates, depending

upon

maturity;

to

in

fjnancdal

tbe

Ho-Ching Yang

narticularlv

noteworthv

in

medicine

Born

in

1962 Shanghai, China, Dr. Yang gradu-

aS^: West North Central -2 to

ated in 1925 from Tung Chi Uni-

yersl

r^^f

-fit; East, North Central -1 to

D^r

+3; East South Central 0 to +4;

!aude, from Rostock University in

Pacific

Rostock,

+3

to

West

+7;

South

Mountain

increased to 37., lantic

to

+1

-f-6

+5; New England

South
Central

+5 to
to

Atlantic

and

to

+8;

+4

+9; Middle At-

+10.

of

Sdn^
Germany.

magna

After

enm

prae-

ticinS medicine for a number of
years in China, Dr. Yang became
chow in

1°937

Turning from

P'tal °£ S°°"
medical practice

activities

is

finan¬

and

exercised

Bond Market
Securities

N

.

bonds, priced at 96%% to

The

Co.,

Corp.

by

with

'

Co.

.

Scaled

Cumberland
and

Se¬

Graham-Con¬

,

to

yield from

2.00%

to

3.50%, the present balance is $1,600,000.

;

•

Friday's
involved

only

;

sale

of

mention

$1,126,000 City of Cam¬

den, New Jersey Sewer Improve¬
ment

(1965-1997)

bonds

were

bought

the

National

of Newark

syndicate

Bank

State
on

bid

a

of

for

3.35%

a

V-V;".'
of

the winning

account

were

and W.

H. Newbold's

Reoffered

3.45%,

John J. Ryan & Co.

to

yield

Son & Co.

2.10%^

from

oL the

all but $66,000

have

There

bid,

coupon,

■

Other members

bonds

3.35%

a

Halsey, Stuart & Co.,

Inc.

to

which

runner-up

for

also

from

came

100.361

The

coupon.

100.263

by

sold.

been

were

;

sales of note

no

on

Monday tof this week. On Tuesday
there

two interesting issues

were

awarded
Bank

at

public

group

field),

California

$6,-

for

(Bakers-

County

Kern

S. A.

&

T.

bidder

high

was

930,000

The

bidding.

of America N.

Union

Joint

(1964-1973)

yield approximately 6.08% to ma¬ High School District

turity, will not be redeemable bonds at a net interest cost of
iirior to July 15, 1973, except for 2.594%. This bid compared very
semi-annual
sihking fund pay¬ favorably with the second bid, a!
ments

of

Jan.

15,

2.597%

July

15,

was

from

$335,000

including

and

to

$745,000

thereafter to

including Jan.

15, 1978, cal¬

and

84.2% of the is¬

culated to retire

prior to maturity. The sinking

sue

redemption

fund

100%

is

price

1973,

15,

the bonds will
at the
option

the

of

_

the

the

Other

sale

of

the

into yen

primarily for ad¬

corporation's

tele¬

the

by

which
Fargo

associates.

and

City Bank, Chase Manhat¬

tional
tan

&
-

Trust Co.,

Co.

&

and

This

strong underwriting group

scaled

bonds

the

the initial

to

order period all of the

facilities. The corporation syndicate marked closed.

modernization

facilities

in

increasing demand and to

improve the efficiency of its serv¬

&

Telegraph

Nippon

ices.

calls for

current budget

phone's

construction

Tele¬

expenditures

of

the

equivalent of approximately $675,000,000 for the, fiscal year
March
The

ending

31, 1964.

corporation entered into a

sold

final

item

issue

and

the

competitive

involved

$4,-

West Virginia
(1964-1988) bonds. The syn¬
of

State

000,000
Road

been

week's

This
new

of

attempt

an

have

bonds

from

yield

and at the end of

to 2.65%

1.80%

phone

and

Lynch,

Smith Inc.

to

expenditures an¬

Bank

Glore, For-

Merrill

Pierce, Fenner &

and

Trust

Chemical

Bank,

New York
gan:

Harris

Co.,

Corp.,

Boston

First

Bank,

ments

made large

the

of

members

major

winning group include First Na¬

be re¬ Savings

at the principal amount
•\
."N-//
from

Bank

cost,

Wells

interest

net

made

July Blyth

plus accrued interest. After

to meet

Dr.

™™VfoXwed fdist7uished
career

;

persons.

existing

com

munitv is

United

than

other

to

eigners
States

facilities

Yang's

success

and

government,

business

Continued from page 6

from

person

nually for the construction of new

^
Dominick.

such

wholly

is

Tax-Exempt

tax on certain purchases

a

made by

has

&

the

It

various governmental bodies,

18, 1963, the President

ditions, extensions, and improve¬

rePre"

Dominick;6

commercial and industrial

course,

tered

by

of its

and is the

furnishing

Japan.

control

way

On July

and will be used

d

res-

in

owned

by Japan.

bonds will be converted

an

in Japan

company

curities

Proceeds

^edUsVopping ^tLs^m fn

services

only

payment of principal and interest

thereof.

^ctor of that
dimmed snopping emnusiasm in
ti
1962
week
over
someb othcr
areas'
Home
goods
ISince
Vnio
weeK
or
an "increase
increase
ovei
harnlv hpld thpir own
1948,
the year ago week of 12.8% for P^hases barely held the r own
.
v,,*Wlth
last
year's
comparable
vol,
•
IdUg
l\db
all time record high.
been a reais-

the total

telegraph and related communica¬
tion

an

1978,

due

guaranteed

unconditionally

company

~

the

telephone,

public

of

take

to

tions.

Smith,

and

offering publicly

are

deemable

on

furnishing

1952

government

The

Inc.,

of, $20,000,000 of 5%% Nip¬

and

- Varick Stout, Chateau of the

in

the

ister of Posts and Telecommunica¬

Telegraph & Telephone Pub¬

pon

1968,

a

JSSTt VSSMR "tk SSf

formed

from

over

principal supervision by the Min¬

Dollar Bonds Sold

1965

To

with

telephones,

exchange facilities.

Japan,

cial

year-to-year
uptrend in effect 4% above a year ago, almost the would:&pply thereafter. The pro¬
12.8%J: new orders since the middle of May.
same gain registered by depart- posed tax would hot be applicable
and shipments fell 8.9%.
,pbe
Dun
^
Bradstreet, Inc. ment stores alone. The year-to- to resales of bonds made by for¬

thousands

and

circuits

The company, located in Tokyo,

services

dropped

fell 6.2%

miles

13,456,000

toll

public

America.

in

Compared witR 1962 levels, output

.

lines,

was

trustee of the China In¬

a

stitute

4

feet

American

earlier

course

July 20), the 12 department store
districts' retail dollar volume in-

Peak

from

0.5%

Slipping

1962 Week

Price Index

Food

frhm

plus 6% over a year ago.

So

Below 1963

tiilrA

fov

for corresponding period
pr°d^tl0n !n ih? Wholesale Food Index, compiled a year ago.
United States in the' week ended
by Dun & Bradstreet, Inc., stood
a broader set of data encomJuly 20 totaled 193 392 000 board at $5 Q5 Qn July 30
However, it passing total retail sales, compiled
.

•

Commod-

^

.

_

Production Plunges 12.8%
.

Hospital in New York City.

March

additional 5,000,000

an

telephone

related

Y., and at the Gold water Me¬

and

of

at

lic

268.11 in the

and

Week

Wholesale

,.

research

Laboratories, Pearl River,

ending July 13.

the

on

ch^lked up on the

Eases

,

N.

morial

31, 1968 of

180,000

issue

simlagt month. As well, it
substantiaiiy from the

*

d

wag

throughout the country.

Below

medical

Lederle

the installation by

and for

a

de^nt^jales^,
up
for the four week-period

to*266'.43Tn

from

2g

26g gQ

tonnage

Lumber

-

/ index'sank

weekly survey of

and TransEconomics. The report re-

in

time

employed for

was

With
good

the

over

commodities quoted appre-

The

based on the

These findings are

0£

llgt

of this year.

vious week

and he

Md.,

persisted

this

A flash figure for New York
1962 level,
cia),
lower ;n wholesale cost. City's sales for the July 27-ending
shows the most substantial gain DaJ1
dipg were registered in tin sales week revealed a plus 3%
since
the second week-of this
^
throughout the week, re- increase. In every week since
year.
Truck tonnage was 1.5% flecting the slight activity in that June 1, there has been a gain for
•oVtoaa
nf thp volume for the preahead of the volume for the pre
mar^e^:
the N. Y. C.f department stores

.

Thursday, August 1, 1963

Johns/ subscriber

by

Barney & Co. Inc. New Yorkj and

ed wheat

^

mcreases over

1942

comparable year-ago
week's figure New York City's

* buying of refined sugar.

the
and the latest report

fleeted steady

beet

the

increase "in

P

8

year-to-year
vear-to-year
reports have re-

in

Nippon Tel. & Tel.

harvested

a

on

Health

sale commodity price level to 12 leading department store dis266.43 this Monday, the lowest tricts.'

°™^pable

gain
^wnT^in^a

was

degree of Master of

Steady reductions in sugar,
In tbe four.week period ended
wheat> corn and tin Vuotatl°™ July 20, 1963 sales gained 7%
during the past week led to a sub- over iast year's level for the comstantial drop in the general whole- parabie period for the country's

fifth consecu-

announced. For the

basis.

.

elected

J- 5—

v.,™«*
responding week
of 1962, the
American Trucking Associations
o,«,

the ninth en-

wee^ marked
week

ago
agQ

According

:

.

Hopkins University in Baltimore,

anT25°in"the similar
year- while smaller

+

Public

research, Dr. Yang

the

awarded

200 a week dex were up 5% (adjusted) for
earlier, they did not match their the July 20-ending week comcomparable 1962 level of 244.
pared with the like period in 1962.
above the corresponding p-nod in
The week,s gajn oyer the yeaf_

"

.

(466)

34

headed

dicate

by

of

Bank

tional

the

First

Chicago

was

Na¬
the

bidder for this issue at a
2.981% net interest cost with the

high

bid,

runner-up

a

2.99%

coming

cost

terest

net

from

Northern Trust Co. group.

in¬
The

In ad¬

other syndicates sub¬
bids ranging
in interest

14

dition,
mitted

fiveryear expansion program

new

increased

cost from 2.993% to 3.09% for this
for
popular small issue.
expenditures in each of

the

five

on

April 1, 1963, which calls
next

years

aggregating

approximately S5 billion over the
period." This new expansion pro¬
gram

provides for the

continued

improvement of existing

facilities

with the

Associated

First Na¬

Chicago in this
underwriting are A. C. Allyn &

tional

Co.,

of

Bank

Inc.,

Winthrop,
t!

Wood, Struthers
&
Hayden, Stone & Co.,

F ;v:».

J

• -..Si*

Volume

Number

198

The

6286

Commercial and Financial Chronicle

(467)
Weeden & Co., American Securi¬

vance,

ties

sued '

Corp., Bacon, Whipple & Co.

and E.

F. Hutton &

Reoffered

,

to 3.10%

to

Co.

tric

1.80%

for various coupons, the

;

for
'X

'«

«•*

*

'

rY

»"

:

I

nationwide

A

Nuveen

John

Ingen &

■.

&

'

,

'

-

465

jointly

by

Co.,

J.

Van

Co., Inc., Blyth &

Co.,

B.

Inc;.'Kidder, Peabody & Co., Mer¬
rill

Lynch,

Smith

Pierce,
and

Inc.

Fenner
C.

A.

Co., Inc.

purchased,

gotiat:on

with .officials

&

Allyn

through

&
ne-

Grant

of

County* Washington, Public Utility
District

No.

000,000

Wanapum

2, an issue of $197,Hydroelectric

Refunding Revenue bonds. The
issue' consists
of
$40,000,000 of

3%;;

3V2,

3%

3.60,

outstanding

and

crowed

bonds

in

bonds
Jan.

on

U.

until

bonds

S.

1,

retired

be

1963 issue will be the
I

debt

the

of

largest
letin

fore

it

and

now

refinanced be¬

and

construction

still

is

year

and

nese

steel

an

However,

generation

is ' expected

September

of

this

in

COMPANY

the

current

Fuji

in

letter

on

the

monthly

significant

Copies pi either

year.':;£.

Japan

3,7623 % :;v

cording
term

103^
and

to yield
the

The" 3.80%
priced

at

3.62% to maturity

3.85%

term

bonds

are

priced also at 103^ to yield 3.69%
to maturity.

The $40,000,000 serial

bonds

reported all sold and

were

total group sales were

000,000.

'*'0 Nt

O R P O R A TED)

clared
'/•,

1

40 cents per

.standing

share on the outshares of -'common

on

.«

ers

of record

business

on

i

Z

in

*

;

L. H.

the

at

close

Secretary

:

Payable:

V 1

'

-7 -' •

"L

~

Record Date:

of

Sept 11,1963

Southern Electric

Generating Company

Declared:

Southern Services. Inc

July 25, 1963
Board

Directors

of

has

declared

(11/2%)

PER

CENT

$1.50

or

and Treasurer

on

Also

AMERICAN

declared

share

per

able

of

Lock

$.45

of

record

STOCK, pay¬
1963 to ' share¬

August

9,

•.

;

:

•

•

Common Stock

on

•

£

.

1963.

;

4

Twenty-seven

(27c)

cents

stock transfer

booksjwill remain

of
per

QUARTERLY DIVIDENDS WNCE 7935

July24, 1963.,

.

.

open,

f

'

<

,;

i

the holders of record

A WIDE W0RU1GF INDUSTRY

■

■

;/>V:

Secretary and Treasurer

;■■■

CHEMICAL

QUARTERLY DIVIDEND

to

business August 12, 1963.
'

/

and

the close of

at

_

CORPORATION

The Board of Directors has to¬

day declared

W. J. ROSE, Secretary

July 31, 1963.

DIVIDEND

NOTICE

The Board

of Directors has declared

terly

quarterly dividend of 300

the

per

share

a

on

Common Stock, pay¬
able on September 3, 1963, to stock¬
holders of record on August 9, 1963 '
outstanding

The transfer books will

>A

July 25, 1963.
RAMSEY

,CTU«IN6

COMPANY, IMC.

Dividend No.
nd

a

ents

E.

JOSLIN,

GROWING

134

IN

LIQUORS

declared,

not Close.

on

the

10, 1963, to shareholders of

c. iv. Dithrlch, Secretary

July 22, 1963

OF SERVICE:

CURRENT OPERATIONS

PLASTICS

First half sales
est and

were the high¬
earnings second high¬
comparable period

est for any

in

the

Based

company's
on

the current

history.

backlog,

results for the full year

should

PHELPS

DODGE

One-half Cents

(37Vi0)

per

16

to

shareholders

of

of The American Tobacco

record

payable in cash

August 30, have been declared at the
following rates per share:
5% Preferred

.

i

.

.

.

5% Convertible Preferred

.

the

of

close

X. R. Waterhouse

27^

D.

at

•

The

Board

declared

a

share

on

July 22, 1963

;

*

*

the

10,

1963

to

stockholders of

Treasurer
-




A
°

TH1 AMERICAN
IOBACCO COMf ANY

IK? BY

©

AIRPLANES

BUMPERS

•

GRATING ~
ARDS

•

•

AXLES

FILTERS
•

c

BRAKES

•

FORGINGS

•

•

LIGHTING STAND¬

SEATING (automotive) •

SPECIAL DRIVES

•

SPRINGS (all

types)

•

STAMPINGS

SIONS

•

UNIVERSAL JOINTS

•

TRANSMIS¬

"

rec¬

ROCKWELL-STANDARD

'

A. T. Co.

BARNHART,

CORPORATION

Treasurer.

July 24, 1963.

■•I

per

capital stock of this

R. D.

I
■

ClSd)

ord August 16, 1963.

'
■

<*

,

has

third-quarter dividend

vice-pres. a treas.

laaiMaaiaiaiaiMBiaMBi

Directors

of Seventy-five Cents

July 30,1963

J. Ley,

of

Corporation, payable September

25tf

HVid

•

September 3, 1963, to

of record

mailed.

5V2% Convertible Preferred

..

on

Company,

business August 9, 1963. Checks will be

25(*

Common

.......

stockholders

1963

improve¬

ROCKWELL-STANDARD
PRODUCES...

share has

been declared upon the Common Stock

Quarterly dividends payable Septem¬

good

ment over 1962.*

A regular dividend of Thirty-seven and

COMPANY!

show

CORPORATION

232ND COMMON DIVIDEND

CALIFORNIA-PACIFIC!

ber

out¬

August is, I9S3.

Treasurer

.i-

UTILITIES

cents

record at the close of business

J-\V<v.V;

1

N. V.

regular quar¬
of fifty

share

per

standing Common Stock of the
Company, payable September

FERTILIZERS

•

a

dividend

(50j*)

CHEMICALS

•

METALS

;

THESE

MAJOR AREAS

No. I34 o£ TwentytS'25) on the fom¬
($.2O)

e°Oct. 'A9" ;°3,1963:
m'b°LOEB, President
yn,

:

DISTILLERS

" '

public, has been de¬

clared payable September 10,1963,

-

MJNAflONAl9»:;®r

Louis T. Hindenlang

,,

'share on the Common Capital Stock of
the Company, issued and outstanding in
the hands of the

,4 jPREFERREo:|)iyibEfm No/230:
'4:; v Common Dividend No. 220

payable October
1, 1963 to holders of record September 4, 1963. The:

'
'•>

A re3u'ar Quarterly dividend

r\

1868

Cash dividends paid
every year since 1899

Thomas Welfer

A
quarterly dividend of 75^ per share (1)4%) on the
Preferred Stock for the quarter
ending September 30,1963
and a dividend of
Per share on the Common Stock
have been declared. Both dividends are

"'»>.

-i

arid Hardware Products since

Materials Handling Equipment since 1875

on" COMMON

September 3/

holders

BANK NOTE

dividend

a

YALE & TOWNE mfg. co.

the

I y-

?" 214th Consecutive Cash Dividend

•

Vice President

per

PREFERRED ST0GK, payable
October 21, 1963 to shareholders of
record October 7, 1963. - "
•

>;

POWER COMPANY, Inc.
—"
'•

-/

Elmer F. Franx

Secretary

>,-

•

for

quarter
ending September 30,
1963
DIVIDEND
of
ONE
and
ONE-HALF

\

,

Share

Oct 1,1963

Gulf Power Company

Mississippi Power Company

and Treasurer

''

'

a

Georgia Power Company

,

AMERICAN ELECTRIC
-•/

Quarterly Dividend T
25jf

Jaeger,

Vice President

ad-

*"

v?

YALE & TOWNE
302nd

DIVIDEND NOTICES

V

5

aillB.BIlBBBiaBIBBBBBaBBBaS

'July.30^1963

Pittsburgh, July 25, 1963
^

PETER G. SMITH
Secretary ' \

'

-

Alabama Power Company

August 5, 1963.

financing

refund,

-

S

^

^v

Dated: July 27, 1963.

•

'

Company, payable
September 6, 1963 to hold¬

bonds, however, are freely avail¬
the Street.
to

4

%
''

August

on

,'

Serving the Southeast through;

stock of the

able at issue price in

used

\ ;

THE GREATEST NAME IN RUBBER

share

be

close of business

•" V.>yf /■

THE SOUTHERN COMPANY SYSTEM

quarterly dividend of

a

y">V. "< ^

bers and the account closed. Term

Will

"

HByR: L. Miller,

•I '/

just $100,-

this

the.

on

'

:

:

remaining
term
bonds have been allotted to mem¬

from

the

15,

/

The

Proceeds

on

declared

1

THE SOUTHERN COMPANY
/The Board of Directors has de¬

dollar

are

5

been

The Goodyear Tire & Rubber Co.

-^/J

to: maturity.;

bonds

5

Natural Gas Company, pay-

Common Stock,
payable
16,
1963
to
stockholders of record at
the close of business Aug«;
ust

net interest cost

[■ The serial bonds are priced tp
yield 'from 2.80%to 3.50% ac¬

Common Stock of Southern

S

25 cents per share

DIVIDEND NOTICES

3.70%

000,000 of 3.85% .term bonds due
of

has

September

bonds due April 1, 1998 and $106,-

a

S

5

|

dividend; *v

-;•/

:
m

,

A regular quarterly divi- ■
depd "of 55 cents per shard S

:!;30, 1963.

The Board of Directors to¬
day declared the following

both of these

■

■"

.

•

news¬

1988; $51,000,000 of 3.80% term

April 1, 2009, at

■'

| able Sept?mtber 13, J963 tp -5
| stockholders'of record at the S

| COMMON DIVIDEND

economic and

or

Common Stock Dividend No. 98

•

fiscal

financial developments.

late

S

■

are

a

Birmingham, Alabama

S

industry.

Bank

®

-v

:

a

serikl bonds, all due April 1., 1971
to

NATURAL GAS

HI

/"Also available in English irom

power

some

SOUTHERN

analysis of the Japa¬

Banking Briefs,
progress.

will

■

v
*

j

DIVIDEND NOTICES

in the July is¬
Japan's ; economic

for

prospects

power

bank,

:
•

*

,

a

include

the
while

commercial

on

sue

outstanding

generated

York 5, N. Y.

Topics covered

the

Utility District.

has

Plaza, New

monthly basis, rather
than quarterly as previously.

The Wanapum Project has been
financed

Report

DIVIDEND NOTICES

business

on

publish its English-language Bul¬

es¬

1959

and

request

issue, the Fuji Bank, Ltd., Japan's

1970.

the

be obtained by

may

a

letterhead to the Fuji
Bank, Ltd.,
One Chase Manhattan

Commencing with the July, 1963

totaling

Government

when

1970

will

New Monthly

the

on

first redeemable

are

refunding

addressing

Washington.

Proceeds from the sale will be

.

of

group

/ managed

members

"

-

in

publications

Fuji Bank Announces

the

hydro-elec¬

a

plant

River

$195,000,000

.

Week's Major Transaction
'

generating

The

finance

to

Project,

Columbia

present balance in account totals

'

1959

Wanapum

yield from

$1,370,000.

the outstanding bonds is¬
in

35

Coraopolis, Pennsylvania

36

The Commercial and Financial Chronicle \.

(468)

.

Thursday, August 1, 1963

Savings Banks 46th Annual meet¬

WASHINGTON AND YOU

ing at the BellevueStratford Hotel.
May 22-23-24, 1967 (Boston,Mass.)
National

behind-the-scenes interpretations

capital

from the na tion's

C.—Why did
agree
with
the

WASHINGTON, D.
Russians

the

to

States

United

treaty

forward

two

these

between

race

arms

It

a

Soviet

of

the

plus

Union,

important fact the Russians

very
are

question of economics

was

the

appreciative of the horrors

as

nuclear war as is the United

a

leaders also

The Kremlin

States.

quickly
a
world
catastrophe could come about.
realize ;, how

Neither

and

country

our

Soviet

the

nor

Allies

are

bombs

over

us

clear

Russians
in the

Washington

have

weapons.

ahead

On the other hand, we are

ons.

regarded

national

overall

sia's

to

agree

cold

clearly in Rus¬

as

interest

settlement in

a

war

major

a

is

There

area.

to

strong

suspicion that the breach between
thfc* ^Soviets

hhv$

the treaty.

of

Has

Long

a

the

August, 1945,
atomic
and

mond

Naga¬

II

War

to

came

end

an

is

hoping

nuclear power

however,
tested

the

destruction

means

nuclear power

a

steps and of course

many

it is very

not
and is

these two Japanese

500,000
first

the

that

Letter

to

stocks/ Nutmeg

doesn't

perished and
injured

need
Ward

Dr.

that

than

and

the

miles from

1,000

bombed,

in

is

what

to

our

except that supplied by the backs

millions

many

of

v'-'

Chinese

has

government
that

could

Women 41st annual convention at

COMING

Mos¬

out

wipe

bomb that could melt New York's

touched

on

the

in

war

the

his

recent

American

nuclear

angle

of

address

to

people. He said a
kill

would

war

briefly

Kennedy

300,000

people in less than 60 minutes.

IN

phere

underseas

and

will

not

mean

of

course

to

end

an

share projects"
is

It

believed

and

atomic

day

some

in this country.

hoped

explo¬

energy

sions will

dig canals, crush rock,

excavate

building

constructing
to

energy

Atomic

dams,

blast

mountains,

sites,

aid

The

in

and

provide

tunnels

through

among other things.

dropped
ple
be

Already

formal

Energy Commission

the

conviction

that

supply

at

least

energy

for electric

U.

AEC

S.

not

going

other

half

of

the

in

the

to

fossil

that

Although

already

coal

but

where

in

to

will

by

atomic

and

New

have

generate

in

to

good

arms

to

news

hopeful

are

a

race

which

to

must

had

America

Bay

Hiro¬

not buried

11-13,

1963

(Pebble

Bankers

Investment

of

Board

Association

Governors

Meeting

at

the Del Monte Lodge.

Sept.

22-26,

Security

Traders

Asso¬

ciation Annual Convention at the

member

the, board of

Club

of

Association

of

Mutual

17th Mid-Year

April 8-9-10, 1964 (Houston, Tex.)

38l5T

annual outing and field day at the

all

its

90% of the deaths.

Huntingdon Valley, Pa:

Municipal

Bond

u

Club

York 2nd Annual Fall

have

on

bomb

he

was

to

portfolio

hand today and

what

man

who

was

and

Trust

the

of

manager

1957

analyst

Department of Northwestern Na¬
tional

and

a

Mr.

1957

From

Bank.

was

10

to

commercial lending

1962

Walton

joined

was

from

Dain

Scott Di¬

Treasurer for

years.

Mr. Braman joined Dain in 1961

Section April 30.

(N. Y. City)

Association

of

Mutual

was

sales

formerly regional catalog

office

for

manager

Sears,

Roebuck.

I

Savings Banks 44th Annual Meet¬

ing at the Commodore Hotel.
Dec. 7-8,

"

of

Scarborough

-

on

-

New

Hudson,

Oct. 6-9, 1963 (Washington, D. C.)

Association

Bankers

Convention.

V-

1964 (New York City)

Attention

Brokers

and Dealers

Association

of

20-24,

1963

(Bal

TRADING MARKETS

Mutual

Botany Industries

Savings Banks 18th Annual Mid-

Sports Out¬

Year

meeting at the Commodore

Maxson
(Washington,

Association

of

Mutual

Savings Banks 45th Annual meet¬
ing

the

at

Washington

Hilton

Our

New

York

King

telephone

(Philadelphia,

National

A Pa.)

Association

of

Bank

is

LERNER & CO., Inc.
Securities

Investment

Miami Beach, Fla.)

number

CAnal 6-4592

v:

May 16-17-18, 1966

Harbour,

Films

Waste

C.)

Mills

Electronics

Official
17-18-19, 1965

D.

Hotel.

,

Head

Indian

Hotel.

May

10 Post Office

National

Association

of

Mutual

Square, Boston 9, Mass.
Teletype

Telephone

617

2-1990

451-3438

of the first

one

power
areas

is

like

England

stench

flies

ban

who

day

slowed

be

ratified

Senate, is not expected to




of

the

if

The
it

stay
com¬

lead

areas

down

the

Pharmaceutical

,GS

Common

proposed
can

Cove Vitamin &

green

of

test
to

ban

the

tensions

arms

race,

easing
and

of

slow

will

be

1 Harl Marks & Ho. Inc.

a

FOREIGN

great thing for all mankind.

treaty,
the

end all

SECURITIES

20 BROAD STREET

[This column is intended

from the nation
may not
own

to

reflect

Capital and

may

SPECIALISTS

NEW YORK 5, N. Y.

Warrants

Bought—Sold—Quoted
Annual Report
on

available

request.

TELET YPE 212-571-1685

TEL: HANOVER 24)050

HILL, THOMPSON & CO., INC.

or

coincide with the "Chronicle's"

views.]

•

scene" interpretation
s

and

treaty,

the

down

by

millions

panions.

the "behind the

However, the

forget

never

the

during his nightmarish

other

treaty

will

and

there with two other scared

,

shipped

power.

some

be

Na¬

\

'

A.

;70 Wall Street, New York

j

•

officer ;

Vice-President of the bank.

HUbbard

A

until

and

1949

security

a

A;.:
in

firm

the

vision where he

a

what

From

was

joined

the Shamrock Hilton Hotel.

National

Oct.

comparison

Olson

McCulloch Corporation,

ing at the Sleepy Hollow Country

Club,

Annual

in

pres¬

of the Twin City Bond,,

governors

Association Annual Convention at

National

"flash

Hiroshima

is

Huntingdon Valley Country Club,

American

burns."

of

ciub.',a

and

Philadelphia

a

Mr.

1963 (New York City)

Savings Banks

(Philadelphia, PaJ^
National

Security

City

ently

CHRONICLE'S Special Pictorial

Bond

formerly Presi¬

Twin

Convention

Broadmoor Hotel.

Sept. 27, 1963

the

of

joined the Dain firm
was

Annual

Texas Group Investment Bankers

National

He

and

Springs, Colo.)

Nearly all the survivors suffered
The

1951.

Association

meeting at the Commodore Hotel.

(Colorado

1963

Secre¬

t>

1962.

National

sales

and

named

was

Traders

the Hollywood Beach Hotel.

Dec. 2-3,

relations

Association

Beach,

Calif.)

accounted

burns had
or

in

Supplement Dec. 19.

New York.
and

is

AEC

Americans

that

will

walk.

Tokyo

2, Japanese time,

for about 85

sup¬

the

be

electric

Signing of the test
is

in

was

Bankers

CHRONICLE'S Special Pictorial

Sept. 27, 1963 (New York City)

later, after the

Corporate
*

Walton, Treasurer

public

dent

;

and

Association,

that

fuels

Investment

at

they

suggested

and

month

still

surrender

disputed

competitive

California

going to

were

the

de¬

Olson,

Americans in Hiroshima after the

Coal

maintains

peo¬

Russia has in stock.

supplant

fuels,

it

plement them.

tional

Sept.

we

maintains

they

surrender

pee-wee

power

the

thousands of

by

dead.

atomic energy in the years ahead

will

a

Blast

in testimony before Congress has

expressed

bombed,

after United

6

warned

city

that

About

Competitive

;

this

was

leave the city. Many did.

on

Termed

Aug.

on

leaflets

Hiroshima

on

bombers

of

shima

Power

The Atomic

bomb

States

that

■

May 16-24, 1964

con¬

tinued research of so-called "plow¬

Fla.)

of

INVESTMENT FIELD

1-6,11963 (Hollywood Beach,

Supplement Oct. 17.

Hiroshima Warned

in

G.

Department. "

Mr. Garcia

•

CHRONICLE'S Special Pictorial

in the atmos¬

Harold

administration

he

the—horrors

trading

Braman, manager of advertis¬

tary.

Hotel.

mighty Manhattan.

backs.
A test ban treaty

Americana

the

EVENTS

Sept.

single

a

and the Soviets have a single

cow,

President

China has practically no energy

of

fur

and

John L.

:'

~

firm's

the

President

ing,

been

"tiny"

of

Services

C.

which

were

Vice

Raymond B. Garcia

in

elected Vice President and Edwin

Dec.

that had not

city

Russians.

bomb

News

column about

the

from

off

took

compared

Our

a

bombs

atom

two

Those two bombs, each of
a

Market

our

Keelerl"

Christine

Japanese mainland.

melted

—

'jazzing up' with

were

table-top flat little island of Tinan
more

stick

dropped 1 from * B-29

were

bombers

"Just

cities.

More than 100,000
another

costly.

Gar-

Vice

,

partment

in

left

picture

So far,

for more than

so

Becoming

year.

a

have

A-bomb,

hot likely to do
a

day.

some

Chinese

first

the

become

to

a

B.

charge

and what is in the stockpile of the

China

i

c

stockpile today at scattered places

To Go

Ray¬

were

dropped

to

board

President

and

as

Way

S.

Hiroshima

on

previously

,

China

Red

signing

the

U.

Named

every¬

quickly after the awesome deaths

and Red China may

accelerated

uneasiness

an

since

ever

the

from

It is

been

minds of mankind

World

in tactical weapons. We also know

how to build huge nuclear weap¬

Aas

Di¬

rectors.

saki.

lead

a

of large nu¬

area

hydrogen type

or

company's

Looking Backward

doing it for 20 years.

the

and

lowing > the

tensions, at least for a while.

after

that

President

meeting of the

There

York

New

Vice

a

of

around the world is the easing

the

Di¬

new

rectors,

Secretary, fol¬

where

.

of

Russia, but the paramount one
that
will
have
ramifications

ing is costly. The U. S. has been

in

members

two

eco¬

an

on

signing the treaty; Nuclear test¬

conceded

have

impact, perhaps a big one

nomic

in the

is

will

treaty

J. M.

—

Exchange, have announced
the election of
U
A"

■:

-v

n n.

Co., Inc., 110 South Sixth

Stock

the end

Cuban crisis will ease by

The

St.,

in Washington the

of this year.

gaining much over each other by,

It

Dain &

Board ' of

Union

our

MINNEAPOLIS, M i

far as Rus¬

as

sia and Cuba are concerned. There
is strong hope

world powers?

for

is what effect the

a big
easing the treaty might have

toward

Names Officials

side¬

anl immediate

Meantime,

light question

moving

thus

ban

step

J. M. Dain Co.

ahead at intervals.

test

nuclear

a

Mutual

of

ing at the Hotel America.

crisis

tensions. There will be new

Association

Savings Banks 47th Annual meet¬

Tel. WH 4-4540

5, N. Y.

Tele. 212 571 -1708