Full text of Commercial and Financial Chronicle : August 15, 1963, Vol. 198, No. 6290

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INFORMATIVE

EDITORIAL

inevitable that the break in stock

ernment:

I :V:

with the

investigation's. It ndw appears that it, - along £
outpourings of the investigatory bodies, may"-

of
which there are already far too many. The fact that the
drop in prices of-stocks was not preceded, accompanied,
or even

iness
of

followed

any very

riers

THE

malpractices

the financial

There have been

the managing

The

THE

chief executives of

statements

begin herewith—

factors

will

have

greater

the

new reg¬

added regula¬

new or

ceding

else should know

all too much of this sort of

add to the mountain of

regulatory procedures and

ma¬

It is likewise plain enough that

chinery, the better.

the

well that we have already
thing, and that the less we

drop the notion

since

the

scene

that somehow government

appearance

ual under

its

results of his

experience

own

now

folly.

are

the

upon

should take the individ¬

It is also clear

running

over

ment in the nature of the

prevalent

protective wing and shield him from the

intentions do any
If

of Franklin; Roosevelt

not

case

some
can

the face of

years

that

govern-,

not with the best of

such thing.

result

(Continued

on pane

33)

commodities

exempt

from

actions

than

increases

two

traffic

reduced

The

the

from

lines
the

benefit

net

depreciation

issued

new

$571

July

million

will be

net

recalled

situation

lations to

areas

;

obtain equality of com¬
The Commission has

exempt.

now

limitation of the

agricultural commodities exemption
to movements from farms to local markets.
r

.■

.v-

•

As of the present, the effective date of

and

rule- changes

proposed

the

the work-

railroads,

and

the

consequently threatened rail strike, have been post¬

income.

poned to Aug. 29.

Laurence K. Walrath

that dur-

the meantime, Congress is

considering legislation recommended by the Presi¬

ing the preceding session the President sent to the

dent

Congress proposals for strengthening the transpor¬

tion of the railroads while this Commission is eval¬

system

elimination

of the
the

country.

Interstate

Included

Commerce

were

uating

the

means

the

ensuring the continued

positions

brotherhoods

Commis-

the

represent-

roads

and

(Continued

opera¬

union

the
on

page018)

State,

Municipal

Housing,

and Public

State and Municipal

;

MULUMEl WEILS & COMPMIT

Lester, Ryons & Co.

Securities

;'! '

Underwriters

623

!:!
i

Instead,

alternative pro¬

•/

jv.

■i

carriers and

carrier

RAILROAD INDUSTRY FEATURED IN THIS ISSUE
i

these

there could develop

creating risks for

bulk commodities exemption and

motor

U. S. Government,
Public

others

The Com¬

program.

long sought legislation to repeal the water carrier

guide¬

million

$171

well

sup¬

been

have

legislative proposals will benefit the nation's

roads

1962

matters

Presidential

posal of the President to

investment tax credit

amounted
the

these

the

industry is

hearings

petitive opportunity by extending economic regu¬

expenses,

the

Congressional

recently

are

industry

Presidential recommenda¬

it and

conditions

railroad

the Commission has endorsed the

technological improvements.

them.
in

certain

The

increased costs for carriers and shippers.

rather

under

regulation.

favorable

are

unstable

the

transportation of agricul¬

transportation industry,

net

principally

Government

to bulk commodi¬

mission does not believe that the passage of

the pre¬

over

was

the

recom¬

agricultural products,

vehicle

of bulk

included

influence

line-haul

Federal

tation

prepared to drop

year

revenues,

•

should be well advised to

Class

railroads in 1962

tory measures are to be undertaken, but we do know as
every one

improvement

for motor

porting

the financial'condition of the railroad indus¬

income

regulation of rates

feels that both of these

possible that during the coming months

seems

jurisdiction and the

tural commodities and water carrier transportation

out the

proposed or what

rates

representative cross-section

held

Copy

ties be extended to railroads. At present, interstate

Chairman, Interstate Commerce Commission

noneconomic

Cents

existing exemption of motor carriers

and of water carriers in respect

try than the economic developments. For example,

ulation is to be

from

whole. Partici¬

regular annual feature

mendation that

the economic prospects

carriers subject to its

car¬

tions

length and breadth of the land.

1839

authority to regulate minimum rates of the'

sion's

CHRONICLE,

upon

precisely what

ESTABLISHED

the;Bailroad Industry

large securities firms with employes scattered through¬
We do not know at this time

Price 50

HON. LAURENCE K. WALRATH

groups

of the nation's railroads and supplying companies.

the like have been dealt with by

community itself

CHRONICLE, include the Chairman of the /. C. C.

and the

pects of relations with the public and of the vigor with
which

their- views

in this symposium,

pants

probably increased rather than reduced the hazard

for

written

specific roads and the industry

for

FIELD

intimately identified ivith the nation's

present

relatively few charges of outright fraud. Much has been
said, however, about what may be termed the ethical as¬

FINANCIAL

heading Authorities View

especially

individuals

drastic deterioration in bus¬

greater government interference.

articles

presently give rise to further regulatory measures

THE

Outlook for

prices early last'year should precipitate a rash of gov¬
'

7, N. Y., Thursday, August 15, 1963

How

As We Sec It

It was, we suppose,

PUBLICATION

New York

Number 6290

198

Volume

MOST

AND

LEADING

THE

Distributors

•

Dealers

So.

Hope Street, Los Angeles 17,

"'/'r

',:V 'California' ,' \*'

■

Members

New

Stock Exchange
Exchange
Cokst Exchange

Corporate & Municipal,
Securities -t.

P. O. Box 710, New
PHONES:

770-2541

•

TWX: 212-571-1414

San

jBEjMIDWEST STOCK EXCHANGE

Diego,

Santa

Ana,

Bond Dept.

Santa

Monica,

Whittier

FIRST NATIONAL CITY BANK

Inquiries Invited

135 So. LaSalle Street

Teletype: 571-0830

New York

Correspondent

CHASE

—

BANK

California's Diversified

Dealers, Banks and Brokers

.LUMBER

1832

Members
New York Stock Exchange

Stock

Human Resources

CANADIAN

Canadian Securities

m MEN
Block Inquiries Invited

American

MANHATTAN

Pershing & Co.

Net Active Markets Maintained

T.L. Watson&Co.

THE

Southern

California Securities

Chicago 3, III. FRankfin 2-1166

ESTABLISHED

Municipal Bond Division

dale, Hollywood, Long Beach, Oceanside,
Pasadena, Pomona, Redlands, Riverside,

770-2661

Notes

MEMBERS

York 8, N. Y.

Pacific

Offices in Corona del Mar, Encino, Glen-

CHEMICAL BANK NEW YORK TRUST COMPANY

MOM DEPARTMENT

Agency
Bonds and

York

Associate Member American. Stock

Members

Housing-

Exchange

BONDS & STOCKS

Commission Orders Executed On All

Canadian Exchanges
CANADIAN

DEPARTMENT

Teletype 212-571-1213
25 BROAD

STREET

NEW YORK 4, N. Y.

DIRECT VIRES TO MONTREAL AND

Goodbody

TORONTO

BRIDGEPORT

•

PERTH AMBOY

2 BROADWAY
NEW YORK /

1 NORTH

Corporation

Co.

MEMBERS NEW YORK STOCK EXCHANGE
LA SALLE ST.

CHICAGO

Exchange Place, New York 5, N. Y.

Teletype S71-0880
Area Code 212

WHitehall 4-8161

Bank

America

N.T. AS. A.

MUNICIPAL BOND
SAN

FRANCISCO

■

DEPARTMENT
LOS ANGELES

For

(626)

The Commercial and Financial
Chronicle

The Security I Like Best...

Banks, Brokers, Dealers only

Professional Service

A continuous forum in

participate and give their

reasons for

favoring

MARKETS
Positions
500

Director of

rhdre

Members

leading O-T-C issues.

Macke

of all

O-T-C markets, v

'-7-7

machines: located

Stock

vending

->'■
" '

Exchange

•

Telephone: 363-2000

Wide

Wire

Service

net

Call

First

pling

since

1958

R. F. & P.

All Issues

Victor

39
703

—

Macke

Capturing
of

age

con¬

food service

vending

already operates

retail

growing

1051

962-3855
.

Branch

313

Office

—

Bay

try

sources

1965

dollar

basic

venders'

basic

snacks,

The

222-5012

the

and

Several

outlook.

The
of

food

factors brighten
suburbs
not

are

shorter

work

are

■

available.

day

toward

with

also factors

coin

operated

cafeterias

schools,

which

market
per

(Single, Copy
This

give
on

well

bound

all
as

other

en¬

will

securitiesA
"hard

Over-the-Counter

•

find"

its

call:
I

WILLIAM B. DANA CO.
25

Park Place

New York 7, N. Y.

and

serving

the

service,
high traffic such as

machines

operator,

■

expenditures

$3 million

the

The

owners.

variety of

the

account

dollar

own

for

sales

with

though
this

cigaret

advertisements

exchange,
must

WHitehall

3-6633

Teletype 212-571-0500
212-571-0501

The
4

*mr

•

-y

Tpw

•

•'

•

'•

Vast Eabradqr rower Project
«

■

....

"t.

many -

North

s«es

power

TV A, Grand

oned-A-Niagara Falls
Coulee Shawinigan
cost

of hydro-electric

duction

the

once

Vfinanced

hnd the

etc.

power pro-

has been

dam

remains sub-

and built

stahtially belpw that of the*
etfficicnt

steamr

most•

generating Asys-

mill or

paper

sources

As with the promulgation in mid-

shares of com- -July of the second tranche of the

(til/,

~aJ

11-.

T-

wiill iwn'nk

f Vi

1 QftO

"ioi'd'

iron r»

V> fA'YTi;

May,1962,)

or a

nri

ConiiRiK)' Prorlit'*,

.v./,:,

; - •/- y

cii\rr/

r\ rrt

^ unaee^ierated; -LeyeL

-i

^alpng.

had not total of around

the hydro-electric

million additional fc

put to use $250

soon

■;

OmbaUmg the

'from•'Hamilton'Falls* above' that' satisfactory with working ^apit9l

Such power

the area.:

may

sists < of 5,823,691

A; controlling sales .pitches, away--*/
fr°m the home office.

BASIC ORIENTATION

- The project ;has. been rsubstah- Annual * Report,v and to) note: in :
tially^ engineered and is) expected) particular^ the quality oL manage-.
aluminum plant, to start in f964.

cheap power,

located

they were

civilizationr

too remote' from

needful

of future earning powers-

States"

tapped «imply because

BY :A. WILFRED MAY

interesting call; on
significaritand; Jarge iscaXe
an

the United
Consoli- mom stock trading OTC in C.-m-• Market'Study Report compiled by
Front-End Load
.
dated Edison of New York has ex- ada and New York at around $4.50 the SEC's Special- Study Group, , Investor education can* play an
pressed an interest in this) new (American .dollars); plus -3,175,- the release of the final 'segment; important :.part.in combatting the " - •
Labrador ''current"; the future ,812 .Founders Shares which have over the past week has b.een^front-end load abuse which is so demands for electricity in Quebec, 10 votes each (as against only one eliciting false impressions, of ex~-decisively,--attacked by the Study
Ontario,- the Maritimes, and New vote per common share). Other- conation in , its. basic.-attitudes This would.be true/short rof out- /
York State point to the,economic wise both classes of .stock rank towards the-parts of the securities jfight outlawing qf.any:aocelera-.,.
need for> the, project; and power> equally. - Financial position, ds;-industry..unvolved>. (This "Jinal^tion of sales, charges; ^s.an.'dhe,/ er to

America1 have already been devel-

to:,T

hydroelectric, mineral,, oil,, woodlands) Present capitalization con-

proved the export of surplus pow-

located

ac*ressiblv

the

up.

reported a net profit it does
offer to speculative minded stock

sources

poration Limited to create one of the world's largest hydro-electric
facilities on the Hamilton River, 700 miles northeast of Montreal.

water

iT^K§dsiy;>fiAugLrstfl5,--196a^. si

v Speculative
Speculative Appeal
Appeal )\

buyers

arid plans.of British Newfoundland Cor¬

A review of the progress

Chronicle*,

rnow.,

Dr.. Ira. U. Cohleigh, Economist

TVTncf

Commprmql/Q^

(628)

usual

front-end-rdidihe^ ^thaf

takes-.approximately tseveh -and- rtG J
half '.years>%©f

-ordinary- rnfr&thb,''

cotip his -buying expense^nd

be-^'l

development at^Hamil
Labrador; '-700 J miles

power

competitive

to the distribution lines of

y^j|| j^GQtlll"6
?A /

\?;.<*

..I

v
V

f.the caseAof'4he^-:iasuar)aH^m^drre

proyernejrts
^re much .needed,
proveme.
^e ^i^d vpaymeiU v of
or^ §&/* it ■* egplatqry pattern, ef the securi-rshould be ma4e dear. ,0
regulatoj
^bww....

Hv^cr-iA-YKI

A'« Bowatek Corpo-

nrires

r»nmnf»fifivp

.of

Great4

10%3^Rio[iAlgbna-/
i^^glo^SHcan

huge-electricity output can

delivered, >at

Rio- Tintb

lef

Mines Ltd,

thaii a

ers, include
ibout

I Falls,

»*

able .to- cash-in. without/loss. AJn-

-ton

after; personal., income.-ta-x/ to

^nces,.

Conso-r

ration, Suez. CanaL-Co., and Pow--..

,
Canada
;Loiporation . oi t.a aaa.,

Un-

duPorit
Francis I.'dufoi

& Co.,

lidat'ed
about

from

years

ing in

New York subway train

propelled by Labrador juice.

;

Brinco

tends this bill -of .health: ^although

;

The

that

company
-

;

imaginative projectj in , hand; is,
^quite surprisingly, not at a
we

-w»

wiU

probably

about

securities

senjor

Board

Directors

and

includes

difficulty

industrialist^
of anBritish New-

found land

tUre

offerings,-

Ltd i;

Corppration,

(BRINCO)

■

vwas ■

even-

which has

Ltd

lease

the-water

Larse^ Concessions

Other

-r-

'•

GRINGO

year'

which

miles from

der,

flows

near

500

the QuehedBor-

( easterly into

i In

Newfaund-

addition:'id'water

BR?Nco ha^

power

Falls

xvhioh

h'ac

port:

regional

-1—'--1 1—J '—

points'7out;-the.
0f

formance

the'

strong

per-

Exchange

Corporation/- Ltd..^mileS

.irPPHv

invp.tpd

r rancis. i.

►

ments, actually paid,Ian effective

sales load of rfrom double to five )
times, the 9.%, maximum overall

over

e
enaefnentretDh
of "trick..,:
closure
t
alone
o
^T
But ^surely yrf legislative,er--f

duBpnt t,&

co^ the' Federal -securities laws,

the corporation^:.'Den- Present

Labrador

and

49$ i

«R30

major) contribution to banning of the Front-End routine;-..^

Congress or the Commission, or future.amending to Real with pewG.
both will-give alFthose effected objectionable techniques thatmay l*

K),incis j. duPont & Co: into, the the Opportunity to be fully heard/be concocted.

R°oky Mountain, region. One of

DISCLOSURE ;AND

Ary
covenhg^,-,^'^^ t^^^y^'

some

Power 043; square miles (about the-^^size
nxxmc
a
nnp
third intprpst in Twin - V^ a
,
.
owns, a one-third interest in l.wm ,0f ipennsylvania)
35,545
square
Falls); Power

ttte- AUant.^. mineral concessions;,

Hamilton;

Ocean.

••L?'^=n nnn^vf pL°S^fe sociate Managers.
„
°'t ! ]lP f ?
This move marks the entry, ot*

power-

for some

•----jWoen

also^holds^p^er.watpr...takes

reppuHamilton
Z
V)'h '
River,

-tand

1 —A1--

<-■

.voortiirppc

Cornnration

•

ration has been active,in local, un-

thoughMhe1 derwritings

-1-' -:-

tv^e explorat'ion°and devel- V i
^tnrni

,-^opm,

con-

?;V It, can also ,be pointed out dhat,-.
as t the) Report. specifically .dis- ."closes, -the one-third^ ofall past,
contractual plan investors AwhoA;
dropped out before completing
their ten years';tpf monthly, pay-

Newfoundland

nection wilh these indicated fu-

stature.

ternational

anticipated

in
should

jknpwn, although it has been, xn prove attractive to institutional
jbusiness for 10 years, and tits investors)) and 20%. in equity. No
nanciers

;

80%

(which

.Founded ' in?: 1934^ the V Peters,11 there a.r.e1 defects in the, functionWriter & Christensen Corporation ring oFthe/Fxchange market which
is one of the largest investment, should be corrected,: the Exchange
banking firms in; the Rocky has worked diligently^ and on the
Mountain area. In addition to its whole successfully, to maintain a
commission business, the corpo-., £ajrr'^ a^' honest market. The Re-

fPrPH

'?■ttfost*

Rpnreqpntativps

irin^niiai rnnni^rt'is

rvf

Statement of Financial Condition

Report: on:).)the: "'• Mutual."4

^.^Hnr^P^iSnr

thp<?i<

u/A-ds seems to. endorse our s^sis
of i«vestor education—with:ca.veat^

•

<■

■\

•

ItemSfRequifiiig Edqjcaiitm, J:vX-

EDUCATION:

^^
abFcad and. more^^than JfT00 Regisr,_-

cjtatpmAnL

■■•■

any :

: '•

<i.

■

'b,

v;:

event,; the. findings

■*..
»v
_

!♦%.. v.

fr<)m ^he .preceding WRatton - J
,

i..^.

-v,-

-i

.jf'r-To

tor ignorance,/highlight the.'./

omn

milhon"fn ttmlenerTtinfunfts
two generating .units, ^wfoundland,,plus
dis- "
,7,100 square oil.con^
miles, and shows.;totaleducation^and
000,000,,and net worth of
'particularly ^t?ue in ihe' Closure. Twenty per cent of regu-F '
totalling 120,000 installed horse 2,100
miles of sodium and $31 000 000.
:/
million

sl01)s

power,

will

the Unknown River, a

tributory

double

Hamilton,

the
that

capacity

over

square

and

case

potassium acreage. These concesgions

are

jayjor< R0gers

before
ELGIN)

Falls facility how supplies power

programs with a number of well
known international mining com-

Ore Co. of Canada and to

panics. The most promising min-

eraj

tered representative in charge,

the

end

to Iron

this

year.

Wabash Iron Ore Ltd.,
a

This Twin

and made

net profit of $158,172 in
Hamilton

1962.

Falls

big future of BRINCO lies
in its Hamilton Falls Power Pro jHamilton Falls is

among

few large scale water power

the

sites

VV ilclicbUctvlv
whalesback

foundland.

The

ect.

area

kas

far

in
XII

Here

]3een

Northeast
IN UX tllLcio t>

NewIN
c W

copper

ore-

>
contain 3 milbody estimated to'

iifm

nvprafxino-

Ions averaging

selling practice-the Re-

port citing the misleading repre-

being explored in joint

Tayi0r,

Rogers

sentations

Tracy, Inc., 20 Woodland Avenue,

Robert

Vierling, Jr.,

«-i

i-v

/-v

is regis-

f C *

New Dupree Office

customers,

plans
^

for

the

sale

their

whom

purchase is "unsuitable," and
switching
fund

shareholders from

another

for

the

ila/ account purchasers r and 10%
^ contractual plan buyers said

that they had received no pro¬
sP^ctus, and purchasers reported
bemS told tha| shares are like

fU?-d

one

management and investment polibenefit? cjes are
supervised or controlled

of the commision to the salesman;

by the Federal Government. Rela-

all constituting elements of "high

tively few) investors could make

selling.": As manifested

^reasph^ly accurate estimate(of

pressure

Inc., Security Trust Bmld- /
,
the amount of the sales charges,
ing. Thomas P. Dupree, executive m the experience, .u n d e r the , ; The s
goes on to reoort
vice-president- of. the firm, • will .^Statement/of.. Policy adopted ,by,"that although the first-years' " ex,

.8% to 875

feet m depth has been located,

, r

s.ucb. isipacL^..*

Volume-198 ? Number 6200

-.when

-theyA had-made
chase-:" -

their

The Commercial and

rn*><

pur-'
:

strong chance

.nearl'cer-

.r.i.dit

promoting

"do

Yako\vicfc,fT iee-P'resfLcfcnf

By Dr. Joe V.

In&jNeto;>Ydfa

yourself"

;

first quarter

;

of this year to a level

;

that

sumes

all

profits

during the current decade through
.and improvements ,in

other-factors-in

picture

remain

stantially-unchanged.
the

greatly

earnings

ami Economist, Blair

level

probably

Merihwers Weu' Ym

reduction; in

proposed

ing the 1960s.

further

individual

income

taxes

would

flow

assets'of obliga-

>«.

£;

•

deficits -bon
boosting

;

iiivesfere' ^ inflation

sustain,

bil-

$7.5

of. savings

Administration

the

payments

also

greater
bal¬

our

problem,

and

with the free world involved in

consumer

possible

would

give

ance

^installment

for

cut

economic

credit expansion and increase the .Union,

.v; ift cdin e* -Tin a he i a f

about

stimulate-,

purchased,

new

By stimulating the

tax

economy,

flexibility in dealing with

lion

1,250,000

workers will be entering the labor
market each year on average dur¬

However,

improved

would

productivity,- and

sub¬

expand business spending and the

V,, analyzing of one's personal
ynancesin'-terms "of'determining;Dr. .Y.akowicz. maintains that the. prospact

'/ approaching $28i billion,. This as-' automation

"In Outlook for Stock Prices

"useful

T7\ '

the

tainty of price increase.
Education - could. also

(629)

Program Key 1 actor

reported'is emphasis by. a
.r'f Significant number" of salesmen
------ '

l ax

a,.,.1 Also

•

Financial Chronicle

in-, ther

with

race

some

would

appear

vestment./,y i/iy :Ty://: V be desirable at this time.

psycholdgy.

Soviet

impulse for fur-

new

expansion

the

■j,
against

Significantly,- any reduction of y These probiems appear to- be
-.J^i^orate tax liabilities woulft.be widely, recognized today and, right
/quarter. -sup^rinapd^d : oh benefits already-, or. wrong, -the predominant; view

rise

second

of $850

pi^essures^test Jban^talks-,and Ieiars/'%Als-ftthje/riacehtriutpmi^iift^^iyeft/froift^tl^&feyi^
of "a a,ailrdad tieup have dominated sales
may, not be ..maintained dtir-. preeiation.' guidelines, > the. invest- aj least provide a partial solution!
»;&/| y*». -"4 •
y ing the balance of- this year, parij£&;ptqitoriibn-:af contractual plan the &■ thinking
ment tax credit and4he sharp re- Thus, V:if my * present expectation
the " in-'
./Tpiftrihasftrswtp rise ; as.^levels' 6f*
rfieularfy? in" view of the large in- bound, in earnings experienced fqr a substantial lowering of taxes
'
crease
i'^hducaitioh"as- well as income* and -vestor duringcredit tfuririg *ast- year« According to .Departr is realized, I would
expect re^
thedast eighteen months and beof -Commerce estimate^ the -uewed strength in the' economy,
Gaus^i964r model changes are [not ™*£ker -depreciation permitted by a further boost in earnings/ large-^
expected:fd' bdv important. < The ^e new, regulationsy.lowered /cor- >scaie. idefichs -Which could revive
^li^uidatiqiiv'-7 of •• steely ^inventories' Poration .income r taxes ,by $1.25 inflation psychology and a
pieot
$1'0
J".

•

;6 billion

including r*

.cut,
a

w.t

-possible- $2;5 *
o?.f'

^'^ana^ajrThe-.invest; bfIHo?" .^uc--.:

...

'"i:ment;l),eaiers

Association

/'prospective - resurgence of outlays' -in_ 1962. jumped; to $27.7 - billion
>Tbf *t^raiit; and ' equipment should from $?3.6 billion in the preceding
sustain industrial production' close year and- contributed impottantly.
the^V retkftdTchsh?^ilqw of'busi¬
to current levels, and Gross Natu

sporiy

overshadow

beginning in September.

both

*'Ti'f

u/.by.-mail
.:

signed
,

look

an.

ven - ternational

four, parts.: It .Is

enable- the

de-

student

investment- and

ment- securities
of; the

dealer

through;
and

ey°s

through

the eyes', of. the

investor:

jh*

and

V::f-"ic';VV;.v- "•'?*

r^-V

French.--

-Any
of

person

who is
firm

member

rfi»n
diah

are

virtual

because

broad

Commerce

and

the

now

mission, projects plant and equip-

support for

trend

since

appear to be

no-

1955,

increase in labor costs has slowed

at'about

down perceptibly during the last
thre.e years, and "industry gener-

Mr.
with

Course

'the.- firm,

and

covers,

an-account-

ing, months..,

ing approach to statement analy-

sis;-corporation finance;-Federal,

provincial - arid

^*■

*,-'■£

Record High

;

economic

vance'1 in' overall

■

:\n*xT>{"

"Time

activ-

this

and

year,

the

While
of

Right"

ity is indicated over.the-.balance

Standards

the

•

in
in

rate
rate

the
the

CouirSe-1^ whidx :is - open; only to curiiuiation,
directors; partners and employees

uct

of member

annual

-of'

firms

the

ID AC

member { firm :;of

Canadian. Stock. Exchange.-

fnal

June
June

ac-

a, new

cede
mer

record

of $579 billion in the

rate

quarter
arid

;

this

during

economy

the

first

year,

of
of

this
this

the House Ways and Means Corn-

even reeven:

may

temporarily during the stun- mittee is "now speeding work
months.

Moreover,

the-tax

boom

capital expenditures is hardly

indicated

year

the

larter
quarter

Inc.

Department of Murray

reductions

year.

■

lrillS'

The Board of Governors of 'Asso¬
ciation

will

hold

Stock

Exchange Firms

their fall

23; and 24

substantial

indicated

are

January 1 of next

time.

present

and

measure

jjjXCh&RSG
&

meeting Sept.

the Hotel

Utah, Salt

Lake City.'
The Annual Election

the

effective

Association

Nov. *20

Politically

the

Meeting of

scheduled

for

University Club,

New York City.

Ofirst This year's projected capital out- and economically the time, is ripe
($565: billiori,:in<'the lays are" only moderately above for a tax cut. It is needed to speed

$572,./billionin

....from

Joins.McNeel Staff;

inventory

Gross National Prod¬

advanced

second

any

of
of

previously

Co.,

strong' performance

UD
up

Corp. of America.

municipal securi- W Aided by the cOntinu^ irisft ift indCx : ofindustrial production hal
half of this year eased some of
ties; 'securities salesmanship;, arid government speriding and ,a step-. which attained a peak of 125.1. in the urgency -for a pr-ompt tax
cut;
investment policy,
policyv Cost is $90 for

was

McDonnell

•

office, 610 Ford Building.
MacLeod

Company, and had been with the

b"usiness:"; and 5.2% over the 196^-total.'
:
because- fke com- - with the
impact of plant and;ially has been institutinS sweeping
^0+^ **,4
-"A•"_<<

mn\r

various positions with Ford Motor

Cost

: >

Exchange,

Detroit, and prior thereto he held

The

expenditures for the current

$39.2 ^billion,

Detroit

dis¬

year

of the investment firm's

manager

profits

improving.

•

associated

now

the New York Stock

peak of

new

ment

' parties/

political

After- showing

cernible

cuts Securities: and?: Exchanged: Corn-

not only

1961.

year

William-

—

,Q
;

Jr.

;

-/!

with Reynolds & Co., members Of

earn¬

ings after taxes increased substan¬

The latest

DETROIT,/'. Mich.

MacLeod,

COst reduction
rate of ftn'employr' equipment
spending being offset' cusl reuucuoii programs
programs to
to... COpe
cope
of " the -ment -and slow economic grovdh rto some
extent-by
the lag in re- with the Problem of competition
coUfs^ and
and iexandriat.ion^fed, is $50./ic niirAlw tri
coUi/s^
inprpnsihfr nrpc- fti
and the Drofits saueeze. V-W •*"exaniiuatioft£e^ris $50. . is likely 'to exert; increasihg pres- 'tail sales arid inventory- accuipiila/• Course
II. is a continuation of-sures for tax reductions over com- tion, no more than a hiodest ad-

•.through

liigh

certainty,

the

new,

year.

substantial tax

that

Cana--labor, but also
p.'vnh'nficfe
P>m-r»n
«own*{„Al«r
exchange;,,
may,etiroll;iparatively-high

Rtnrflr
Stodk'

corporate

...

;•

vJ\PQIQQ

'ror'of ar mfember-firm of - any
•

for >.depreciation,

•

provisions

$24.6 billion from the $21.8; billion

opinion

IDACe

CvV
?

tions conducted jointly by the De-

this

later

employee
employee-tax
legislation aftong both major
the

,♦

partment

decisively into

-move

ievejs

both* English

though

jra%i^haft;d^ihg/itft0;
year.

Despite, the:- larger'

'available1,

steady^ advance,

dhe

ness,

con-

tially last

tional Product is expected to

and I would expect average prices" survey of capital spending inten-

:,in-

r as ;;

in the stock market first half of this

major swing

investu.ie

then

well

monetary^- considersf-'itihiie its

ihz^ determining

business

^ developments

Joe V.'Yakowicz

speeding'' an^i• ^

terr.t„

^ccruals an additibnal $ 1 ^billion^ -ti <r.
t
- ^ i
TAivin
^bl^nrate depreciati.pn'aiiowarn'ces- 'JArJLcxC^JL^v3C/CL eJ OlXlS

"Nevertheless, the upward push

.oCCan/" t^WW'

xaiL&iZf'-fi>,V ■>•-'-

<5' 4

; tax

r the

Howriver;' the $37 billion'level of expendi-

1962v»l

:K««v4-.+iirAc

diirincf

iQR7

nnd -vif 'wp

Licoa

up the growth of our economy and
to. alleviate some, of the burden

ad-v

of .persistent,

Corp.

NEW YORK CITY—-Licoa

(porpounemployment.,/Mr,-ration, 65 Broadway. Officers are
-

ueparimenr. 01

commerce

survey.'CAyeiiuiiuics,.m»

;;

jex^i963/riai-e :;mot

xcm

icmw

iwi

®^thefein^ntorii^^J/riSfe/plri^os^pf
si^e&rs
with4,M kLier^
InM<W<>■: million
for the
current

■

rec^t^imi^ea;:oUtitha|

.DES MOIxNES 9. IOWA

recent
?

''V

DEALERS

DISTRIBUTORS

in;

1957

the

importance

recovery

penditures

rapital

UNDERWRITERS

deliberations 5

/.standpoint. * of r: corporate
P'

/
.

; /

TELEPHONE^ 28^2003

515 285-4783

'>/

;■

•

/:' '

Members New York Stock Exchange

;=/.
3 -

■

ta&eA

iri ptriM&itnciiW

that

; E

the->

EDWARD

profits

net **reductions

of the: $10 billion

order

on-

BEACH

r.'/ia4iee/n admitted

i/ie
jJj.

the;

proposed

and the. trend of equijy* prices. 0very . / *
the foreseeable future. /Assuming; y =
that the; final tax' measure pro- \
.
=

:'fvides: -for

//-' f

'•

the. outcome of current Con-

agressional" tax {'

'*/-•

GENERAL MARKET AND IOWA SECURITIES

ex-

J^utiodk- fdf rthe economy.: How-

^;.in

>?■' TELETYPES 910;5SS-1212

;

strengthening I the

"even-mdrft,significant/from
j

the

/ ever;
v'

whereas

v: It is riot my intention to under-'' /-? .='

.904 WALNUT STREET /iS?/i':T // ri.

,,r

^^igiadotpar Secretary;r f

oi Grds£:

Product

estimate
r

IW-W ■'

■

Robert {G. Zeller^ President, HuDepartment'sOffice bert J. DeLynn, and Raymond SManpower,Automation .and Troubh, Vice-Presidents; and Ni-

22Tllhorv 3obs>wUlrbe ehmmated an« Trea^re^

will amount

year

Id; phly-; aftout
■

the /Labor

expected' to ^vary of j

"tiorial

Seymour L. Wolfbein,/director of

c/etiera

*,4»k '

d-* "Ifio

../

w3>

"** 'i

a MirteA-

at
L

■

.?
v

-r< Direct Wire
s*

"i'V

to:
•>";

& F. BUTTON & COMPANYv INC/
'51

■ .*»

„by -the

L*."'" '.*• '/•"/s

would- be

Recently acquired the

assets of

•

FIRST OF IOWA CORPORATION C<-

■

corporate earnings

rather;. profound.

"profits
over

estimated

The

: e

$2.5.

;

X20
y

an« \' {
E/:
during* the:&~:ssmum

■

y* ,V1---./.:;

-r\A; ;

/';

|
>5 S

;

BROADWAY, NEW YORK 5, N. Y.

•!

WOrth 4-6700

' : ;

the $2.5.4 billion

(rate ^recbrded
'■iH,

proposed reduction: of <corporate•.
(tax ratesrfrom ,52% to 4.7%.would-v

vbilliori

/' lift

Kennedy.,.Administration,/s*;r /'/>-/

^the impact

/<?•»

The Commercial and Financial Chronicle

(630)

Tax-Exempt Bond Market

Federal

ficials

HAMILTON*

BY GEORGE L.

part

industry has lost its magic touch
and municipal
and, in the process, underwritten
shown a lack of general investor millions of bonds with little or no
;buying and evinced some slight compensation to the dealers inevidence of tiring. As we went to volved. <
press last week the $100,000,000
Ridding Still Fxuberant

Bidding Still Exuberant
However,.all is not lost, at least
n°t y®t> and the general price
level is but little ^changed. Durthe past week, bidding lias
continued to be very competitive
but investors are reluctant to date
to follow these,. price mark-ups.
The Commercialand Financial

various, pur-

California

.State

week the state
bond market has

past

the

(1965-1990) bonds had been
awarded to the syndicate headed

pose

jointly by the Bankers Trust Co.,
First National -Bank o* Chicago

Co., Inc.
relatively close bidding over

and
after
the

other bidder, the Bank

only

Chronicle s 20-year high grade
bond Index averages out at a

bonds

the

reoffering

the

to the

&;,S. A. group,

N. T.

of America
and

Stuart

Halsey,

public had begun.

''Optimistic

reoorts at that time
indicated that just over 50% of

*? .°J ^ otf

■3-03f°

week .ago theIndex.

of dol'arss'#"„hdhfh
about, one-eighth of

ithe issued would be-spoken- for';.Jn terms
during the initial order period, to a loss of
but subsequent events proved this a P0,nt P'-jr

The Index is derived from acfirst business
day, after orders tual offerings and is less sensitive
had been tabulated,.*; only
$32,- ^to market change pn. th^ ^dpwn000,000 of bonds had been sold side than if the biid side could
and later follow up orders have »be found and used. ;:>v,
totaled
but
$3,000,000, ' bringing " ' %

to
<

error.

At the end of the

Inventory Suggests Caut
dealer inventory condi-

the balance in that account down
the

tion
has
changed
moderately
r-. V- ;
V since last reporting but much of
Depressing Development; this can be blamed on the unsold
:

000.000.

Another
',i:

Another

the

■

•

dampening

i i

blow

market

tax-exempt

the

was-

lifting of syndicate price restricticns on the $197,000,000 Refunding

serial

Grant

and

bonds

term

County, Washington Public

Utility

District

reached

the

No.

market

which

July

30.

California balance. As viewed
through the Blue List offerings,
the t°tal stands at $593,295,000 on
Aug. 14 versus $509,570,000 a
' week ago. Were the California
balance in some yvay deleted, the
H°at would be just about un¬
changed from a week ago.

approach
sisted of $40,000,000 serial bonds $600,000,000, storm warnings start
djue-1971 to 1988, which were all flying.;
' ;
1^
v
-spoken for, and the term bonds
-.
included $51,000,000 of 3.80%! ob1
A Bright Spot
This

The

$65,-

figure

Aug.

„

^negotiated

offering

when

However,

con-

business

continue firm

light.

calendar

the

scheduled
almost

this

sale presently on

the

$35,000,000

calendar
Gas

for

the

needs

market

sellouts

and

that doesn't
least

investor

demand

ligations

bid,,

; are

down

the 13.85s

from

their

103%,

quoted 1191%

are

bid, also down from their original

offering price of *103%r It is
fimated

000,000

that

when

es-

unsold

price

bonds

re-

dealers' hands

restrictions

were

lifted.

fee •n .a,v

frightening

that

note

the last three large negotiated

is-

sues,

the

Grant

County issue, the $193,300,-

000

City

previously

mentioned

of Memphis,

gheny

in- this

future.

The
js

;any

revisions

before

the

all

bonds

downward price

one

kind

bonds

accounts

were

another

sold

and

closed.

begins to look

though the

-f

Pinch-hitting
-V

Mackey.

with

the

Aluminum Co.

Population of Lewisport is about
700 people. This issue has been
cleared

the courts

the;: process of being

and

readied for

market.

.--1,. •:

The

for

need

for
V

Donald
,

sections

Other

have

market
very

quiet

sessions.
rose

ments

been

for

bills

caused banks to

other

scales

creates still

issues

and

then

the

longer

worked

maturities
for

out

scale

could

buying to

ten

over

instances

some

underwriters
'that

scales

far

have

insurance

casualty

individual

with

priced

the
and

the

out

York

State

Los

Angeles,

reached

tunately
they
of

dealers

holding

balance.
is

3.389%

the

new.

three

year

and

peak.

____

Maturity

Bid

2,000,000 :1965-1983

7:30 p.m.

but,"

No.

210,

Ariz.__

Wayne Comm.

Schools,

Ind.

Calif.

The

Evansville
; -

the

Vanderburgh

Okla.

Airport

Colleges, Board of Regents,

until

Providence, R.

;;

■;'

■

■ • ;j

has

South

Co.

Jt.

Jr.

Fac.

Thursday

$3,434,000

Board

(1964-1988)

bonds

3.80%

Co.

Co.
a

„•

Stern

8,500,000

Dist., Calif.

8,250,000

and

County

Indiana

State

the

Paine,

are

Dabney

Rhode

Island

3.15%

'3.05%

Tyson and Robert K. Wallace &

3.05%

."2.90%

Co.

3y4%

1981-1982

3.00%

2.85%

2.80%

2.70%

3.15%

3.00%

3.15%

3.00%"

2.15%

from

3.15%
3.10%

Ohio

3%%

1981

3.15%

3.05%

3%%

1981

note

3.30%

3.15%

ent

V 3.30%

3.15%

note.

3.23%

3.16%

Washoe Co. Central S.

any

Clark

County

District

37,

issues

Pa.

Wash.______!!_
_____

——

Lafourche Parish. Hospital
*

District No.

2:00 p.m.
12:30 p.m.

1966-1983

8:00 p.m.

1964-1988

;

School

•••j : JSeptember 17

Los

1964rl99$

September 11 (Wednesday)

Vancouver

No.

Pittsburgh,

2,000,000
4,789,000
4,680,000

11:00 a.m.
1965.-1993
1964-1983

(Tuesday)

Service

;
;

——

11:00 a.m.

1964-1988
1964-1988

'2:00p.m.
9:00 a.m.

September 18 (Wednesday)
14,700,000 1965-1988

10:00 a.m,

La..—.—'.
S. D, Calif.

Angeles Unified

1,000,000
25,000,000

Monday of the pres¬

saw

Goose

only

Creek

Independent
sold

$1,880,000.

void

was

and

week

Texas

the; present' bal-.

syndicate

Friday

5,000,000
9,000,000
D., Nev.__ 7 3,000,000

Hempstead QenLHSD No. 3, N. Yv. -V

.*«-■"y'

3.85%, investor demand has been

3.20%

1,500,000

Pa.__u

(State of)-.__^_Y----

1981-1982

with

10:30 a.m.

Pittsburgh School District,

Hannahs

1981-1982

September 9 (Monday)
1,800,000 1965-2002

Wash.

September 10 (Tuesday)

ance

—

1965-1985
1963-2000

University of North Carolina

3%%

moderate

3,000.000
2,865,000
1,000,000

Franklin Sch. Construction., Va.—

members

yield

,2:00 p.m.

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

Pierce Co. Tacoma SD #10,

The

for

■
___——

Reserve

College Board, Ind.

Boland, Saffin,

Townsend,

Park

price of

also

Co., Lyons,

Scaled

11:00 a.m.
1964-1984, 8:00 p.m.
1964-1983 11:00 a.m.

7?
35,750,000

Buildings

District, Minn.

Phelps,

coupon.

syndicate

Inc..

7
2:00 p.m.

1964-1979

September 5 (Thursday)

Webber, Jackson & Curtis, Bar¬

Lee

p.m.

made by the

was

major

winning

dollar

100.028

coupon

Other

and

3.80%

\ 8:00

September 4 (Wednesday)
1,500,000 1966-1988

Alaska

Hennepin

the syndicate managed jointly by

3,250,000 ; 1964-1985
-t - V-' " , ;, f ;

Ga.

Authority,
Col

been

worthy

are

Last

10:00 a.m.

11,070,000 '

Savannah'District

evening, Jefferson Township, New

Nuveen

1:00 p.m.

1,800,000 '1965-1983

1,100,000

Washington (Olympia), Public Sch.

sold

Noon

2,160,000

Waltham, Mass.

ing

which

1964-1988
1965-1974

September 3 (Tuesday)

and-

comment.

2,350,000
3,000,000

7f,100,000 * 1968-H987
N. J.

Saxman,

issues

11:00 a.m.

7*7V
-7 7v7 ft ;77'Yv7t;7;777.: •
7 1,479,000 1965^1990 Y 10:00 a.m.

Scotch Plains-Fanwood, S.D.,

liberally sprinkled with interest¬
brief

11:00 a.m.

1970-1983

" 1,075,00Q

Northeast State College, Okla.__

starving in

Awards

bonds

1966-1976

11:00 a.m.
11:00 a.m.
1,500,000_ 1967-1989 .1 8:00p.m.

Minn.

Authority, Ind.

past week totaled $206,414,000 of
various

1,600,000

____.::%7,678,000

Edison Township School; N. J.__"_

issue calendar for the

new

p.m.

2,800,000

4,600,000 .1964-1982
1965-1983

ret, Fitch, North & Co., Hanauer,
Asked

Agency, Calif.

August 28 (Wednesday)

of the main

one

7:00

3.10%

Tyler Indep. Sch. Dist., Texas

White Bear Lake Ind. S. D.,

3.20%

3y4% .1981
3%
i98o
1963 Index=3.032%

11:00 a.m.

New Haven, Conn.__;

1982

•

1965-1990

Holyoke, Mass,

3%%

•

4,000,000

Houston, Texas

bid

ago

Tampa, Florida

plenty.

Recent

3.30%

midst

second

week

1967-1993

Hanford Jt. Union H. S. D.,

loaded, it will

are

2:00 p.m.

(Thursday)
1966-1993

this will last

guess

10:00 a.m.

1,250,000

Fort

are

1965-1988
1965-1983

August 27 (Tuesday)

leaving

bag

of underwriters

causes

1981-1982

•No apparent availability.

the

a.m.

4,350,000
s 5,000,000

Danville, Va.

limited part

offered;

long

anyone's

1981

August 14,

How

dealers' shelves

3%%

New York City____

only take

can

a.m.

11:00

1,100,000

but: unfor¬

the banks

bonds'

3y4%

Philadelphia, Pennsylvania
•Chicago, Illinois

big

the

Maryland
________

bonds

11:30

1965-1984

Slidell, La^

Sacramento Redev.

all

if banks could take

long

for

This is in line towards the higher

______

California

the

Gordon & Sautter.

•Pennsylvania, State
-!____ 3%%
1974-1975
♦Delaware, State
2.90%
1981-1982
New Housing Auth. (N.
Y., N. Y.) 3%% -1981-1982

•Baltimore,

right

account headed by

Rate

♦New

all

1964-1983

August 26 (Monday)

would be

course,

1,389,000

Douglas, Ga.

Dist.

11:00 a.m.
2:00 p.m.

4,200,000

Okla.__

1966-1983 *

Maricopa Co. Phoenix Union H. S.

com¬

company

investor

This, of

100.475

MARKET ON REPRESENTATIVE SERIAL ISSUES

California, State
•Connecticut, State
New Jersey Hwy. Auth., Gtd

market.

Jose, Calif

40 years,

come

have

County, Hawaii

and in

years

1967-1988

15,950,000
1,350,000

Co., Ga

August 22

Now, with banks moving their

Fenn

3.441%

1,000,000

Joseph, Mo

Tulsa Co. Ind. S. D. No. 1,

panies and individual investors.

rate

11:00 a.m.

Tulsa, Okla.

were

casualty

bill

ran

1964-1982

1965-1983 ; 8:00 p.m.
1974-1983
11:00 a.m.

an¬

could

attractive

3.253% last week and the 182-day

borrowing

1,900,000

1,950,000

San

tailored to suit their requirements

five

with

11:00 a.m.

Lowell, Mass.

lengthen average

new

bill

compared

1965-1994

Fulton

also

problem.'When banks

past

91-day

8:00 p.m.

2,000,000

August 20 (Tuesday)

August 21 (Wednesday)

buyers of just short-term bonds,

John

the

11:00 a.m.

1964-1983

St.

to increased pay¬

maturities which

and

Treasury

3.335%

discount

steady

during the

The

bond

1965-1993

1,800,000

Hawaii

deposit rates, has

Education

the

11,350,000

Authority Sch Dist., Pa.

higher yields by

the banks, due

Jersey

Treasury Market Calm

4:00 p.m.
7:30 p.m.

Raritan Tp. S. D., N.

possible exception of1 $50,000,000

versus
*

calendar

issue

issues

-1965-1972

Wyo._^__^_

Natick, Mass.

;■

continue. Here is

Lewisport,: Kentucky tax-exempt
revenue bonds to build
a rolling

Alle-

Pennsylvania

Authority

subject

vol-

w::;

negotiated

Void

large

scheduled

not anticipated for the

ume seems

-near

revenue

$94,200,000

County,

Sanitary
were

the

and

week to $198,890,000

build-up

this

Tennessee

TVA Rental and Electric

bonds,

stood

sharply

dropped

plant for Harvey
It

spots is the

calendar "which

issue

has

but

$50,000,000; to $60,-

of these -term

mained

new

the bright

One

due

quoted -' at at about $300,000,000 last week

original /..offering.; price
and

$106,-

securities

3.85s

2^09.' The 3.80s
lulVs

and

1998

due

000.000

' 1978-1987

^100,000

Gastonia,

side¬

the

11:30 a.m.

3,000,000- 1965-1983 * 10:00 a.m.

Dist., Texas

dominate the market and general

lines.

1966-2003,

3,200,000

1,400,000

deals

continues

11:30 a.m.

;

Allentown

Bank

future.

near

buying

portfolio

1966-2003,
7;V'-

bond

in the cards

•

Lufkin Indep. Sch.

unfortunately

but

seem

the

for

few fast

5:00 p.m.

/v 'V-:V\Y

—

Alexandria, La

tax-exempt

2:00 p.m.

Dallas County Rd. Dist. No. 1, Tex.

V'v'.?'.'.::

Ed.,;. Poly tech Inst,

Buying Policy of Banks Creating

What

1965-1985

-I

Park Co. S. D. No. 6,

Problem

1965-2002

3,275,000

August 19 (Monday)

V.Y

Aug. 27.

•"

Dormitory Rev., La.__

Lone

debentures

(1988)

La. State Bd. of

should

into the

well

way

2,351,000

•

flotations

and

existent

_■

August 16 (Friday).
La.
State Bd. of Ed.,'N. E. La. '
.' ,'
State Coll. Housing Sys. Rev.___
^i,200,000

again

Here

new

fall. The largest

Star

'■/

through the summer is

non

continue

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

its

every

Corporate bonds
with

making

Board of Regents
now and
.■■■:.V; y: Richfield, Minn.

known

presence

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

longer-term

Reserve

then.

Thursday, August 15, 1963

pay¬

continues, with

market

Federal

Larger Issues Scheduled For Sale

mind

The stability

the intermediate and

the

of¬

Treasury

have- in

balance

the

program.

Treasury

During

and

apparently

ments

levels

one

sale

Consolidated

$4,290,000

Orleans, La.

District,

School

Continued

New

September 20 (Friday)

Unlimited
on

page

Hammond, La

'1,275,000

1964-1978

10:00 a.m.

Volume 198

Number 6290The Commercial and Financial Chronicle

(631),

Tvli

New Issues
/

V 4

$100,000,000

'to%, 2.10%, 2'i%, 2.80%, 2.90%, 3%, 3.10%, 4'», 4.90% and 5%-Bonds
Principal and interest.- payable at the office of ^he StateTfeasurer of the State of California,
Sacramento^Califoi^iia.or; at the pption pf the;
'.;'/•; f-y'y j \
:y ; New York, N. Y. or The First National Bank of Chicago, Chicago, Illinois. Coupon bonds in. the-denomination of
C /'■

■;

•

r. -'
^

.•/'

to both principal and interest at the office of the State Treasurer.

the.

First: National City Bank,V 1
T

vV|Z

•

•'

•

Interest exempt from Federal and California Income Taxes under
present laws 1

'
r"
-

•'

•

'•

*•*

w,'-

Legal Investment, in
and

holder

$1,000. registerable
/
""">

,hl.

V? J'4is.

■

•*»*.

«•?''

•

j.^j./1

•

>• V*.{'y

€

aJ» "> ■.

opinion, for Savings Banks and Trust Funds in New York, California and certain other States
for Savings Banks in Massachusetts and Connecticut and eligible as
security for deposit of public monies in California
our

These voted bonds, to be issued for State Construction and School
Building Aid purposes, in the opinion of counsel will be valid and legally
binding general
obligations of the State of California, payable in accordance with the State School
Building Aid Bond Law of4960 and the State Construction Program Bond
Act Of 1962 respectively out of the General Fund of the
State, and the full faith and credit of the State is pledged for the
punctual payment of both principal
and interest. These bonds are authorized for the
purpose of providing the necessary funds to meet the major
building construction, equipment and site acqui¬
sition needs for the departments of the State Government which are
financed primarily from general revenues rather than from
special funds, and to provide
aid for school
construction in the State;

•

•;/;./■:;;/

'/•/. v////':^

AMOUNTS, RATES, MATURITIES AND PRICES
/

•

■" '.-Vf*

••

:V!'

(Accrued interest

to be

y;'"

;•

added)

;'.V.'

///v:

$50,000,000 State School Building Aid Bonds, Law of i960, Series DD
Dated

September 1, 1963;'

Due March

shown below

(Semi-annual interest payable March 1 and September 1)
•To Yield

Amount

Rate

Due.--

To Yield

Price

Amount

$1,600,000; ; 2.10% 11966

?100 ;?r;

$1,800,000

1,600,000

1967 *

2.25% '

1,600,000

544

1968

2.35

4/1,600,000

5.;:

1969 ;

2.45

;

-or

1,600,000

1970

2.50

1,800,000

1971

2.55'

Bonds
•

Rate

Due

Price

5% '

1972

2.60%

1,800,000

1973

2.65

1,800,000

4V2\

1974

2.70

1,800,000

23/4

1975

100

2,000,000

2.80

1976

'100

2,000,000

2.80

1977

Tp Yield W

Amount

$2,000,000
2,000,000

' ;

Due

2.90%

1978

2.90

1979

•2,000,000

Amount

$2,200,000

ioo

;

1980

2.95%

1981

2.95 -•/

2,200,000 f 3

1982

100

2,200,000

1983

100

To Yield

Price

loo y-

2,200,000

2.85

Rate

maturing 1986 to 1990 inclusive subject to redemption as a whole or in part in inverse numerical order
■'
or any interest
payment dates thereafter at par and accrued interest.

3%;

2,200,000

2,400,000

3.10

2,400,000

3.10

2,400,000
■

Due

2,400,000
2,400,000

Price

-5

ioo

1984;;

3.05%

..,1985

ioo
1986/85
1987/85 *m^:3.10 1988/85
3.15
3.10 1989/85
3.15 i :
l/io 1990/85 4.25 1

March 1, 1985

•

$50,000,000 State Construction Program Bonds, Act of 1962, Series H
Dated

July 1, 1963

Due July 1, as shown below
(Semi-annual interest payable January 1 and July 1)

Amount

To Yield

Rate

$1,600,000

Due

To Yield

1965

1.95%

1,600,000

1966

2.10

1,600,000

1967

2.25.

Amount

Rate

$1,800,000

1,800,000

Due

1971

Rate

$2,000,000

1972

2.60

2,000,000

2.90

1973

2.65

2,000,000

2.90

2.70

2,200,000
2,200,000

1977

2.80%

4.90

1968

2.35

1,800,000

1974

1969

2.45

2,000,000

23/4

1975"

100'

1,800,000 ' ■;:5

1970

1976

100

2.80

Due

To Yield

Price

Amount

2.85%

$2,200,000

1978

100

1979

100

1980

2.95

1981

2.95

■:

-v

"...

These bonds will be

•

*
.

;

•

•:,;

••

•■

#.i

;

•

Due

Price

1983

100

2,200,000

1984

100

2,400,000

2,400,000
2,400,000
2,400,000

3
1982
100
2,200,000
;.. •:,>
,,
Bonds maturing 1985 to 1989 inclusive subject to
redemption as a whole or in part in inverse numerical order
;
* :
•
or any interest payment dates thereafter at
par and accrued interest.
'

Rate

1,600,000

2,000,000

Amount

2.55%

1,600,000

2.50

To Yield

Price

2,400,000

..,

1985/84 3.05%
3.10 1986/84 ;
100
3.10 1987/84
100
3.10 1988/84
3.15
Vio 1989/84 4.25

initially issued by the State of California at not less than their par value, and a taxable
gain may accrue
•
" '
' Investors are required under existing
regulations to amortize any premium paid thereon.

July 1, 1984

bonds purchased at

discount.

•'

When,

'•*

•••

■

"*(»•

and if issued and received by

;

•

"...

■

'•

•

;

;
••

•

.•

Bankers Trust Company
"
-

Chemical Bank NewYork Trust Company
Salomon Brothers & Hutzler

Halsey, Stuart & Co. Inc.

Chicago

Continental Illinois National Bank
and Trust

Company of Chicago

L. F. Rothschild & Co.

White, Weld & Co.

First of Michigan Corporation

The Northern Trust Company

Mercantile Trust Company

Kidder, Peabody & Co.

Security-First National Bank

F. S. Moseley & Co.

Hemphill, Noyes & Co.

Baxter & Company

W. E. Hutton & Co.

Hallgarten & Co.

Lee Higginson Corporation

Lehman Brothers

The Philadelphia National Bank

First Western Bank and Trust Company

Dick & Merle-Smith

Francis I. duPont & Co.

The First National Bank

Braun, Bosworth & Co.

of Boston

Kansas

City, Mo.

Dempsey-Tegeler & Co., Inc.

R. S. Dickson & Company

Estabrook & Co.

Kean, Taylor & Co.

The Marine Trust Company

Stroud & Company
Incorporated

Robert Garrett & Sons

of Western New York

Incorporated

Laidlaw & Co.

Incorporated

Federation Bank and Trust Company

King, Quirk & Co.

•'

Smith, Barney & Co.

Los Angeles

Commerce Trust Company

The First National Bank
•

The Bank of California

and subject to approval of legality by the Honorable
Stanley Mosk, Attorney General of the State of California
and Messrs. Orrick, Dahlquist, Herringtop. &
Sutcliffe, Attorneys, San Francisco, California.
\ *

•.

Second District Securities Co., Inc.

Tripp & Co., Inc.

National Bank of Westchester

Eldredge & Co.
Incorporated

Rand & Co.

Geo. B. Gibbons & Company
Incorporated

Robert W. Baird & Co.

Mackall & Coe

Incorporated

August 9, 1963.

;

The Commercial

Thursday, August 15,-1963

and Financial Chronicle

(632)

DEALER-BROKER

Great Northern Paper Company
—Analysis—Schweickart & Co.-, 2
Broadway, >; New ' York, N/ Y.
Street,-Jacksonville, Fla. 32202. ' 10004. ■* *• - ; ~
American Research & Develop- Greater Washington Industrial In-

comments on West- Americarr Heritage Lifb Insurance'
Brake Co., V U. S. ^-Memorandum—Pierce; Wulbernf;
and Pittston Co.
, • •• Murphey, Inc.,
222 West Adams'

facturing and

inghouse

Air

Steel Corp.

Over-the-Counter Index

LITERATURE
RECOMMENDATIONS

INVESTMENT

showing

—

Folder

up-to-date compari-

industrial ment Corp.—Analysis—Gruntal & vestments—Report—AuchinCloss,
50 Broadway, New York, Parker & Redpath, 2 Broadway,
Averages and the 35 over-the- N. Y. 10004.
'
•
New York, N. Y. 10004.
IT IS UNDERSTOOD
THAT THE FIRMS MENTIONED WILL BE PLEASED
counter industrial stocks used in Armour
&
Company—Review
Green Giant Co.—Memorandum—
TO SEND
INTERESTED PARTIES THE FOLLOWING LITERATURE'
the
National Quotation Bureau purceR} Graham & Co., 50 Broad- J." M. Dain & Co., Inc.; 110 South
Averages, both as to yield and way New York, N. Y. 10004. Also Sixth Street, Minneapolis, Minn,
market performance over a _25^vailable are reviews 0f General 55402.
tion on the weekly or monthly
year period — Natiqnal^ Quotatiqn^ Foods
Aluminum
Industry—R epor t—
corp., United Fruit Co., Inspiration Consolidated Copperissues available
on request—In¬ Bureau,
Henry
Gellermann, Dept. FC,
1"c>r
. Dayco Corp. and Maryland Cup.
- Bulletin—Edwards and
vestment Index Co., 206 F Colon¬
ew York
Bache & Co., 36 Wall Street, New
c. Forest Products—Bulletin— North -Franklin -Street, ,Hempnade Building, Cleveland 6, Ohio.
Secondary Distributions — Analy-. ^Doherty
York, N. Y. 10005.
Also avail¬
Roadhouse & McCuaig -stead,-N; Y. .00220:-Also available
able
are
reports: on; Dayton Guaranteed or Leased Line Stocks sis of price performances ol .1$? Brothers, 335 Bay Street, Toronto, is. a list of.selected high yielding
Power &
Light, Kentucky Util¬ —Bulletin with particular refer¬ .stocks involved in the. 18".monthstont.; Canada. Also available are' stocks.
ence
to
Allegheny
& Western
ities, First Charter Financial, and
ln f f
^
fff .CGmments • on Distillers Corpora- Joy Manufacturing
comments
on
Bigelow Sanford, Railway, Beech Creek Railroad,
v°i'nnnfi
'
ration-Seagrams, Canadian* Pacific Thomson & McKinnon,
North Pennsylvania Railroad, vaSb-eiivj
0
y*
Atlantic Coast Line Railroad, Walt
; 'Railway, ; Massey
F e r g u s o n, way, New York, N. Y. 10004.
^ v
Northern
Central- Railway and
Disney Productions, Standard Oil
Selected
Stocks—Bulletin^impob
.Noranda
Mines,,
and
Steel
ComKeisey-Hayes—Bulletin—OppenPhiladelphia,
Germantown
&
Norof Indiana, Neptune Meter, Roper
Company, Incorporated, 231 South pany of Canada.." A : -•
heinier,"- Ntewborg
Neu, 120
ristown Railroad—Charles A. TagCorp., Kerr McGee, Murphy Corp.
gart & Co., Inc., 1516 Locust 6(161)4
and Zale Jewelry.
®'
- ' Bearings Inc. — Memorandum — Broadway,
Street, Philadelphia, Pa. 19102.
'
.
' T,
-Butler, Wick. & Co., Union. Na- Keystone Discount-Stores—MemoSteel Companies— Report —Itey-. tional Bank Building, Youngs- ? randum
Sunlee
Yeatman * MosApparel Manufacturers — Review
—Evans & Co. Incorporated, 300 Japanese Shipbuilding Industry—

AND

between the listed

son

Dow-Jones Co.,

the

used

stocks

Hanly; 100

Co.—Report—
2 Broad-

New York, N. Y. 10005.

Chicago,

Inc., Ill

of New York

10022.

Story —Report

Water

Arizona

New
—

of Arizona,

Bank

National

First

York, N. Y. 10006.
'•

■

1 •'

Co
Co.

•

riporl.

for Lifetime

and Alside Inc
and

■

Cobleigh—Basic in¬

North

170

Associates,

lMft ■ MM PMlad.lphi,, Pa. lMOJ.pj

Analysis
Hecht,
Magnavox Company—Review—L.
Co.,
Inc.,
1 2 5 F> Rothschild & Co., 120 Broad-

ance Company
&

s.Weingarten

Ney and Maiden
Canon 10038

Sugar—Report—Richard

York, N. Y.

New

Lane,

ssrjsmssws.

- ■

laOMM i»l«Oya

InttraU.nnl Silvoo

;

Life Insurance Stocks

Gains—Ira U.

Phoenix, Ariz.

om- 4,si'-

Co.
Broadway,

Review—Yamaichi Securities

York, N. Y.

Avenue,- New

Park

way, New York, N. Y. loouo.

Noyes &

Hemphill,

Also available are

10004.

°61°4'

tity prices on request).

Co.—Bulletin
,

taaac

esting.

Street, New

Wall

Inc.,

Sons,
I

Industry—Comments—

Chemical

Co.,

Goodbody
New

York,

available

Also

comments

are

the

i on

Industry,

Capital

and

Utilities

Electric

Broadway,

10004.

Equipment

Electric

David

Utility -i Stocks—Report—

and

Babson

Company,

Broad
-Boston, Mass. 02110:
'v
'
89

Incorporated,
*

tions

&
*

articles

tries,

Scott Index

Industries
on

and

Funk

York

Bissell

Laird,

Carolina

Banks—Analysis

—J. Lee Peeler

& Company, Inc.,

North

Johnston Building,

;

Weis-

Street,

Memorandum .-r- Parker

C o

Trucking

Our International

—In

indus¬

current

•-

Deficit—Review
of •"Investor-

issue

news"— John

Randolph,

Fitz

Dept. FC, Francis I. du Pont &

publications, 350 broker's reports,
and
speeches
before
analysts

10005.

Co.,

Street,.*New York, N. Y.

Wall

memorandum on Varian. ;
.
^ove Vitamin & Pharmaceutical—
business and economic conditions RePort
Hill, Thompson <82 -Co.
—Chase Manhattan Bank, 1 Chase Inc., 70 Wall Street, New York 5,
Manhattan Plaza, New York, N. YV Ncw_Yprk.
.
,, .
,
- 10015.
;
•
.
Cowlcs Chemical Memorandum,
Tobago—Review

Trinidad

Also in the same issue are

analyses

the

Drug

Cumula¬

C. I. T. Financial Corp.,

informa¬

Products

and

Industry,
Purolator

Uniop

Kraus,

New
60 Broad

.11)604..

,T.T

„

the Bond' IMirkctk
%
.1
U. -S.".Treasury Regulations
to

Respect

United

rities-Dept.Circular

iWith

—New research

.er, Bean

change

Companies

& Mackie, Inc., 40

piace,

'
•'*.

Perkin

i;n

randum on three

MuUigraph-McmColketf.&l

N.I.Y.

N^^York, n" Y: lOcSrisc

Hunsaker & Sons—ReportBateman, Eichler & Co., 453 South
Spring Street, Los Angeles, Calif.

i c e, Continental Telephone
Data Control' Systems
Building,- Inc., Elco Corporation, F a m i I y

-'St. Luke's Hospital Association
(Fargo, N. Dak.) Bulletin B. (C.

Alarm Device

Securities,

Manufacturing Co., S. Y.

Biscayne

Chemical
C.

dum—Amos

—

Sudler

Alside

Inc

—

Rediort'— 6regman
Y • 10004

NewYork ' N

American Electric

Wall

Association

Trinity Place, New York 6, N. Y.
Teletype 212 571-1780; 1781; 1782

•

Ma^ .Carter Painty Co., . standard Oil of

Power—Review

Indiana-Memb-

Standard Motor Products and Til- randum—Shields & Company,

: lie Lewis.Foods, Inc. .,'

;

•

„

; WaU

„

street, New

> mnn^

rfrro-C«rporatien-Report-Gol- 10005., . . ...

York,

N. Y.
j

,
Corp.—Comment
10005. Also available
.sweiver'J ,teNew
ertSYork.',
^
N.. Y,- in.curre„t issue of the "Investor's
of
Brooklyn
Union Gas, Cerro -^6004.
Reader '—Merrill Lynch, Pierce,
Corp., International Minerals and Great Atlantic & Pacific Tea Co. Fenner & Smith Incorporated, 70
Chemicals, National Cash Regis- —Memorandum—Pershing & Co.; Pine
Street, New York, N. Y.
4er, .Peoples Gas Light & Coke, ,12Q Broadway, New York,. N. Y.' 10005.
Also.in the same issue are
—Shearson,

Troster, Singer & Co.

•U-U4'-

Record Plan, Gateway Sporting Ziegler and Co m p a n y,.Security
vfGood® Company; Levitt & .Sons,, Building,; West Bend, Wis. v ,

Cummings&Co.P4 Albany4eet;
Request

e r v

Company,

Co.,

Denver, Colo. 80202.

Memoran-

-American National Bank

V. 10004.

ternational *: S t r e t c h /Products,

Chemical;, Corp.—Memo-

PIPELINE CORP.

Hallum, Kinnard, Inc.,
Seventh Street,:- Mib-

Pine

100

Alloys

TRANSCONTINENTAL GAS

South

Boulevard,, Associated Products Inc., BurgSouth, Miami, Fla. 33101.
master Corp., Central Charge

In c.,

MOTEC INDUSTRIES, INC.

attractive Bank

10005.4

randum—^Technical

N Y

-neapoUs,.Minn., 55402.

v.
Alcolac

HAnover 2-2400

Incorporated,

New York

V''4' ^^oc^s-

i:n

Co.,

"THREE-STOCKS WORTH STUDY" comments on.

Members New York Security Dealers

RrmHwav

American Inwstor -The A^erte, gf ; Crai

W;-

Addressograph

—

plscu.s?10^^^"5"glJ!^ ^ue-- ?f''Tp6rt^-Bernard Greensweig, Dept.

York,

New

Place,

Park

"orandum—Penmgton,

Copy

Elmer

Ex-*150
Broadway, JNew YorK, in.
10038- Also available is a memo-

Our Latest Brochure:

1-? * 1
f ;
Memorandum,;—

V 'L * "
-

A'""", Baker & Co.

■ ___ ;x..:

Staley Manu-

Banks, Brokers and Financial Institutions

IONICS, INC.

# .r.

Service Electric

York, N.- Y.

New

10005.

report—Dept. ED,' _2

-Sine-

Memorandum

& Gas.

Building," Dallas-,; T e x a s

75201.

Office,,

Washington
Washington 20401
20401.

Western Massachusetts

Bank

300-

No.

U. S. Government Printing

Mercantile1;Gas and Public.'

Southwest .Company,
Secu-

States

N. Y. 10007.
or

Burge,'

—Ball,

53201. ,;
Pacific Gamble Robinson Coj—
Bulletin—De Witt Conklin Organization, 120 Broadway, Niw
York, N. Y. 10005;
:.
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Peer|ess ,nsurall0e Company—Revipw. npmnwv-Tegeler■ *' & - 'Co.

•••'

^
^^
QrrieS80 Pine street,; New York!
125th B^S
consecutive
quarterly
com- C—c, building, Cleveland, *'Inc
Ohip 44114. " f
'
y-10005. Also mailable are
panson of leading.-institutions—
f
^
(x. xuwu. ^ p

icle,
h

N; Y. 10004. v-Also

and

m p any

Swingline, Inc.

Banks—

Jersey

senborn, Inc., 24 Commerce

business sub¬

tive Volume $30. Further

New

Lean

Index

Annual

Charlotte, N. C.

Northern

jects taken from over 200 financial

societies —1962

Meeds,
120
Y.

•

corporations,

general

—

Broadway, New York 5, N.

Newark, N. J. 07102.

•

Corpora¬

of
—

Street,

stocks

bank

City

28202.

Equipment.
Electric

New

analysis

and

Comparison

Stock s—

City Bank

New York

.Iiisur3»iicCj—7Curr --Memorandum—Robert - W. .Baird
-York, & -Co. - - Incorporated, t.731- North
available 4s a Water Street, - Milwaukee,» Wis.

PcnnsyMcniorsnduni.

York, N. Y. 10005.

Di- and Minnesota Mining and a list

I"c-—A"aL'sis—Hirseh &
Co., 25 Broad Street, New York,
y io()04.1 Also available is a
discussion of the Tax „„ Foreign
Securities, iomments on Commercial Credit, Magnavox, Maytag,
Southern Pacific, Allied Stores,

30301

bquare, i\ew xoik, in. i.

Marietta Street

Atlanta

10017—$2 per copy (quan¬
with particular reference to the
•
HppI,
r„v
CIueM- Peabody &
reviews
'
«
/
—Carreau,
Smith,
McDowell,
of Ncn-Ferrous Metals, and Eli Metal Fabricators—Analysis with
Lilly & Co. and a memorandum particular reference to M u e 11 e r
a i
•i
, ,
' York, N. Y. 10006.
;
Brass, Revere Copper & Brass N. \r
on International Stretch Products.
Y. 10005.
Also available are
i
Inc. «arid
Scovill\ Manufacturing reports ^ on^ Rciil Bonds,''
Canadian Stocks—Statistical sur¬
C o m p a n y—Dreyfus
& Co., 2 vania Railroad, Delaware & HudPaine, Webber} Jackson &,
vey
of representative corporate
Broadway, New York, N. Y. 10004. son, Pittsburgh & Lake Eriev Mc- 4iSj 25 Broad*1 Street, New
securities—James Richardson '&

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60 Broad Street,

10004

Electronic. Laboratories,,
Inc.-Analysis-Putnam & Co;, 6
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Row'
Conn.

capital gains—Cobleigh & Gordon,
220 East 42nd Street, New York,

Courts

Problem—
Review—Burnham and Company,
Payments

Balance

Review—-CarJ Newburger,
Loeb
& Co., 5 Hanover
New York N Y

•

Company.

" ■

Masonite Corporation—Analysis—

Reverlv
Hills
Calif
' '•
-t
'
formation,
highlighted for in¬ Drive
available is a discus- *5orden
Company
Co., 8 Han¬ vestors, about the attractiveness of 90014' Also
Also avanaoie is a discus M Loeb Rhoades & Co 42 Wall
life stocks, the historic growth of sion of the Balance of Payments
;Tom iVnrir tvt v mnn^
over
Street, New York, N. Y.
Street, New York, N. Y. 10005.
10004. Also available is an analy¬ representative life insurance com¬
Also
available
are
reviews of
sis of Chrysler and comments on panies, and criteria for prudent Suggested Portfolios—Four port- Lane Bryant and Cabot.
current selection of seasoned life
General Motors and Ford Motor
folios
in
different
categories—
_
stocks with a view to long, term

Industry—Analysis—

Automobile

N Y 10005

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wav

and

Street

Hammill

New " York

Walt Disney

Co.', 14
N

Productions.

^m' Bomback., & .Co., Inc., . 67 g^one Container

10005.

;

Continued on page 45

Number 6290

198

Volume

The Commercial and Financial Chronicle

Euro-Exchange Sought

cheaper to

rencies

lars,

By Firms in the U. S.
■'

■

By Paul Einzig

Dr. Einzig reports

from London that

act as

that

American firms are

some

other

while

short-terms

for

American private firms

are con-

firms

re-borrow

contributing toward
truly international money market.
7

toward a

already happening to

States is

Euro-cur-

other

and

market

Euro-dollar

the

borrowers

American
into

the

markets. Hitherto American London

.rency

appreci-

firms
of

and

have

European

Euro-dollars was centers, not only Euro-dollars but
confined to European branches of also other Euro-currency deposits
American banks taking Euro-dol- whose rates are below Euro-dollar
of

borrowing

*lar

for the pur-

deposits mainly

to their

of re-lending them

pose

home

vpwn

market

■Euro-dollar

dollar
the

appeared

firms

private

Ameiican

offices.

the

for

deposits

^ence

American

^ur0_gujj(jers

an(j

evi-

the

that it cannot

Swiss

francs

enjoy

can

the

interest

the

other

the

full

rate

And

rates

attract

culated

risk

the

markets in them.

comparison

cate

the shape

whatever for

From

of things to

with

the

indi¬
come.

for

mand

decline

foundations

the

would

for

Klugerman
curities

the

when
total

some

business,

the

Euro-currencies

other

from

Kusakabe

rities

firm

engaging

business

2113-A

Euro-dol¬

Lime

name

—-

higher in¬

for

especially
call

who

are

Street

qualify for

under

H. S. Ovrut

covered the Euro-currency facili-

have

ties

the

advantage

PLAIN VIEW,

bor-

rowing in the cheapest market and

Lane.

the

cheapest

Need¬

currency.

this

say,

advantage

Company,

necessarily confined to firms able

rut,

Ovrut

operate in large amounts. Even

so,

the

development

has

Officers

Opens

N. J.—II.
Inc.;
are

London

was

formerly

with

Darr & Co., Inc.

already

solicitation of offers to buy any of these securities.

offering is made only by the Prospectus.
August 15, 1963

large
participation

$50,000,000

.with

rates

Euro-dollar

are

Commercial Credit

able to compete

now

States,

periods

for

particular

over 180 days. A number of Amer¬
ican firms, especially but not ex¬

atic

Dated

Euro-dollars,

borrowers

y2%Notes due August 1, 1985

August 1,-1963

Due August 1, 1985

financing.overseas

for

only

have become system¬

London,

■not

with* subsidiaries

those

clusively
.in

Company

lending rates in the United

requirements but also for financ¬
ing

curious" situation

The

arisen,

therefore,

firms

and other Ameri¬

them

for

practice

has

re-borrow

'longer terms.
Evidence

this

the

.conclusively 'disproved
a

•that

•

rate

now

the

Euro-dollars.

While

turnover.

maturities,
shorter

Needless

raised to, say,
more

well
to

de¬

forthcoming

Stone & Webster Securities Corporation

Eastman Dillon, Union Securities & Co.

Harriman Ripley & Co.

if Federal

and

rates

Merrill

Lynch, Pierce, Fenner & Smith

Salomon Brothers & Hutzler

Smith, Barney & Co.

Robert Garrett & Sons

Hornblower & Weeks

Incorporated

White, Weld & Co.

Dean Witter & Co.

were

6%, it might become
for American as

foreign holders of dollars

deposits

their

Paine, Webber, Jackson & Curtis

Bear, Stearns & Co.

A. G. Becker & Co.

There is

iting them in Europe.

Hemphill, Noyes & Co.

W. E. Hutton & Co.

Alex. Brown & Sons

deposit

unless

States,
Europe,
with
,

Should

rates

too,

interest
rose

American

they

the

Equitable Securities Corporation

Hayden, Stone & Co.

in'

in
sympathy

interest

remain

from the Euro-

Higginson Corporation

John C. Legg & Company

L. F. Rothschild & Co.

Shields & Company
,

Spencer Trask & Co.

A. C. Allyn & Co.

Baker, Watts & Co.

Estabrook & Co.

Incorporated

Hallgarten & Co.

rates.

lower,

widening of the differential would
divert borrowing

W. C. Langley & Co.

Incorporated

Lee

United

rates

Clark, Dodge & Co.
Incorporated

Dominick & Dominick

limit to the extent to which Euro¬

dollar rates would follow the rise

Drexel & Co.

Incorporated

the

United States instead of re-depos¬

Lazard Freres & Co.

Incorporated

profitable

keep

Blyth & Co., Inc.

Incorporated

Regulation

say,

rediscount

Reserve

Goldman, Sachs & Co.

maturities.

repealed

were

are

Incorporated

in the

dollar

less

Kidder, Peabody & Co.

forthcoming for longer

are

legally be distributed.

evidence

.of any noteworthy decline

posits

may

The First Boston Corporation

borrowers

find

Prospectus

In' reality,

appearance

firms

American

dealers in securities and in which the

market,

that Euro-dollar
higher,
thanks

means

are

to act as

the

spectacular de¬

turnover.

its

largely

for

may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified

interest

mean

Euro-dollar

the

simply

rates

necessarily

any

cline

American

rise

must
of

end

Copies of the Prospectus

stubborn disregard of facts,

-with

•rates

view,

from many quarters

forward

put

Price 100% and accrued interest

dollars

centers,

European

for short terms
can

has

American

that

London,. Paris, and

lend

'.other

require¬

domestic

purely

ments.

F. S.

Moseley & Co.

Stein Bros. &

Boyce

Ov¬

Secretary and Treasurer. Mr.

interest rates in the United States,

however,

Ovrut

Keswick

Henry

result of the recent rise in

rut, President; and Sophie K. Ov¬

NEW ISSUE

market.

the

of Associates Financial

Services.

offer to sell nof

secu¬

offices

sufficiently

operate
to

position

scale
"in

money

particularly attractive to

are

those

for

The

periods.

shorter

rates

Euro-dollar

This advertisement is neither

Fukuichi

from

of
They

United States,

in the

rates

terest

se¬

Company

Hawaii

continue to act as lenders of Euro¬

dollars in spite of the

offices

lars.

less

de¬

business

HONOLULU,

Euro-cur¬

increase

Y.—William

engaging

Forms Inv.

the

and

three-quarters of

turnover is in

money

likely to continue

3717 Maple Avenue.

Euro-currency

broaden,

BROOKLYN, N.

point of view of the

The

international

and

Klugerman Opens

no reason

decline in the total

further

contribute towards it.

American firms which have dis-

system. All that they would

would

market,
to

would be less one-sided than it is

would not bring about decline and

might

truly

development

other

monetary system such

system

ex¬

States, even if they were not acy ,a SR"lcieRt rlse *n
Euro-dollar rates to maintain the

rency

the

national

Higher interest rates in the United

v°lulRe of Euro-dollar

The

efficient functioning of the inter¬

now

seems

activities in all. Euro-currencies.

operation

change uncovered.
experience

busi¬

towards

progress towards the

importance of Euro-dol¬

lars'in

better.

feel jus¬

leaving

contributed

the

change would be distinctly for the

above

tified in taking a limited and cal¬

Euro-Swiss

francs, also of Euio-D. marks. It

benefit

differential.

dollar

disappearance
borrowing
0f

when

relative

the

sake

rates.

interest

higher

the

lenders

rates. In particular there

Moreover,

would

to the

ness

Euro-currencies

got

now

borrowing

other

former

covering the forward

support point

This

habit

Euro-dol¬

Euro-dollars, and the result¬
increase

temporarily, but there is

able extent,

^he appearance of American firms

borrow

support point they may

market to other Euroexpected effects of the higher in- currency markets. In fact, this is

terest rates in the United

ing

even

dollar

of the un-

Eng.—One

LONDON,

than

into

spot dollar rate is in the vicinity

posits. Concludes the current developments are
progress

cur¬

if allowance is made to

exchange.

they

longer-terms. Notes also their purchase of other Euro-currency de¬
further

these
them

Euro-currencies may safely leave
the exchange uncovered, so that

for

them

cost

rowers

lending dollars in European centers
American

than

even

the

borrow
convert

depreciate further, American bor-

lenders of Euro-dollars, with curious situation

tinuing to

and

dollars

(633)

Tucker, Anthony & R. L. Day

Shaw,

The Commercial and Financial Chronicle

(634)

what

that

underwriters

the

face

years

have

give

tance to cover before we can

The

Municipal Market

By James F. Reilly,* Partner,
Members of the

with

that

think

not

should

factor

when we are

you

lower

bidding and therefore what is

correct

far

bid

the right of the

either

bid

■

reject

concerned,

with

towns

many

taking advantage of the
that

rate

Thursday, August 15, 1963

the

gov¬

Herbert S.
Herbert

willing

ment

occasions that CFA, like the

many

RFC in the

depression, cannot be

dumping

under¬

for

ground

happened in

trace what

you

depression,

the

will find that

The greatest

is that

you

eventually the RFC

bonds.

thing aboyt America

good

prevails even

sense,

not

after

the

eventually right the wrongs

periods

long

Wje

time..

that

Co;,

passed

away

Thursday,
Aug.

8.
Hall
in

born

Springfield
N.

25,

Feb'.

1906,
of

son

bonds.

Hall

57,

banking firm of Morgan

Stanley

for

pay

projects. I have warned on

Hall,

formerly a
partner of the New York invest¬

was

certain

Mr.

had to find buyers for these

admit the theory to be

should live. CFA is

interest

petitive basis. Their theory holds
that it is their money that they
are

striving to

should build and

today

ernment

secured

While I

However, I know of banks in New

how

even

underwriter
do

tion oh how

bidding for your bonds on a com¬

bid is strictly their business.

marketing any product applying.
I

agree

have any special

responsibility to

not

field

the

colleagues

that

ahead.

the years

heritage

great

America

keep—the right to self determina¬

and cities

demand

that

local

and the

Some

issuing bodies and under¬
writers for the securing of better ratings. Asserts prime importance
of hiring the financial consultant early.
Advocates that rating
agencies, underwriter, and investor examine the individual record
based on "pie" type of reporting.
Maintains the financing of mu¬
nicipal improvements is a marketing job, with many principles of

giving

that

entitled to as issuers,
type of service your needs

underwriting

acceptance of greater responsibilities by

that you are

will

At the same time he urges

concerning Florida.

bias"

"inborn

Goodbody & Co., New York City,

statistical organization's ratings reflect

Investment banker charges

completely the type of service

you

New York Stock Exchange

had

ahead.1 I think
tremendous dis¬

the

Perry

Hall

and

Marie

Henke;

Hall.

After

preparing at
Summit

High

School

and

Mt.

Hermon

Herbert S. Hall

rating York City who are still not con¬ theory that we do not have an we do, We eventually stop putting School, Northvinced
about
bonds
in Florida
field, Mass., he entered Princeton
agencies to be glossed over. You
overall responsibility to the issuer. good money after bad money as
which shows lis that thb public
University where he was gradu¬
particular officials live in an area
I believe'^ it is the duty of our the old expression goes.. I. prediqt
of

subject

the

allow

relations

—F1 orida—

.which

^ot
bee n
historically

and

principal

you

feud

you

their

that

believe

have

add that their opinion

honest

though biased. However,

even

take a

believe that they should

realistic view toward Florida

this may be ac¬

I think that

and

complished over a period of time,
but
we
need
more
than
the

We need

removal of Moody's bias.

cooperation

the

sional

earned.

show

investigation:
streets

pitals, if
is

real

profes¬

fine

the

the- financial ad¬
to make1 governmental

believe is justi¬
same time we
should look at our own contribu¬

First

always come back

responsibility that must be

should

enough

project

your

beginning.

early.

consultant
in

the

not

out and hire engi¬
on the

wait until later

and

neers

should hire

result. You

financial

from

financial advisor. It may come as

surprise

underwriters

purses

can't

the

business,

"we

say

lady

out

the

basic

back

comes

must

thing

silk

into

Therefore,

make

sponsibility
You

magicians

sows

the

vernacular

thing."

not

are

bond

that

some

turn

cannot

and

re¬

you.

every¬

running

you

every¬

that

aware

government becomes

various

the

with

each

your

part of the

that

stance

cannot

what

particular town

happens in

city is only

in the ultimate price

receive for

you

in the market:
As

assume

business. All of this has to

reflected

that

the

years

your

and

vou.r

issues

widespread.
we

have

seen a

investor

local

and

will

In* the

become

last 10

your

state

bonds

concerning
in

and

spending

ap¬

amount of

same

Dun

street, who do

about

reporting

credits,

& Brad-

tremendous job
municipal

undertake

set

sample "pies" for various types of
towns

cities. I think that this

and

where

cessful your
think

your

the

debt

your

out

success

measured

advocate that rating

based

Florida.

when

into

this

tvpe

reporting. It

here.

agencies, the
the

may seem

record

financial

silly for

representative of the underwriting
to

suggest

there

are

at this

r times

financing is preferable to
of bad

piece

financing. This abstaining

lead

can

point

when

from the

you

greater

and

investors have in

have

relationship

survive

cannot

respect of

dividual

have

us.

Goodbody

investor

whether directly or

accounts)
tax

make

investment

leave

exempt market if he

see

where

fruitful

many

without

today

taking

stock

in the tax exempt under-

Writing

field

should

respon¬

through. For instance,
reflect

and

here

automation will

for

Texas

Group

of the

IB A

today

sit

can

what

to you as a

mean

looked

when

these

well

lines

might

the

becomes

greater

responsibility

tax

far

people

you

status

exempt

hold

now

that

ever

concerned.

Dept.

offi¬

this

Treasury
of tax

The

foe

many years.

They try to subvert the
tax

United

the

exemption for

you

vigilant

States Government has been

cause

therefore

gress.

matter

these

must

keep

yourself posted

going

need

for

pressing

tax

in this

funds

they

exemption

the

raise additional money.

turn

way

;

that the

money

Federal Gov¬

ernment would have to pay

support

communities,

far

money

payer^

and in
of

when

the

exceed

saved
the

out to
and

repealed,

amount

refusing

right

tax

You

will

tax¬

free

Mr.

hear

he will be

come

situation
than

reason

years

from

for

different

light

lionaires,

very

bonds

because

rather

than

and

their

Firms

America.
Mr.

improvements

only

the

competition

market

will

the

become

being,
money

increasingly

means

communities.

the

typical

Chamber

buying

Florida

Their

bonds.

sharp. The need for sound finan¬

confidence is something to behold.

cial

advice

will

the

foremost

requirement.
extra

improvements will be
I

essary,

improvements that
burden

become

our

based

fellow

will

good

whether

equals good
ness

sense

have

the

end

the

course,

the

What

result

j
is

through

HHFA

and

warrant

the

are sure

responsibility

set up

our

ernment becomes

form of gov¬

even

•

l FulI text of address

issue of the

Chronicle—Ed.

financing

the

up,

selling bonds is

many

through

marketing job,

principles

the

will

appeared in April

Commercial and Financial

many

had
of

agent

for

1945

alumni

Trustees

served

Board

from

interested

his

had

Chairman

and

Fund

Hall

Governors

New

York.

the

Special

American
Short

attended

served

the

Andover's

been
of

The

Secretary

the

Board

Club

Chairman

Bond

was

Gifts

Red

Hills;

Phil¬

Mass.

Committee.

had

member

Hall

sons

the

Andover,

two

1951

Chairman

Club. Mr.

where

Mr.

Nominate

Governors

Academy,

Parents'

Princeton Terrace

actively

serving

years,

Committee

Committee,

Cross

Chapter

Chairman,

securities

division of the Greater New York

Fund; Chairman of the investment
banking
York

committee

the

Legal Aid Society. He

member
ernors

municipal improvements
and

to
en¬

of
of

Summit,

the

Board

Overlook

Jr and

New
was a

Gov¬

Hospital,
Baltusrol,

(N. J.) iGolf Club where he had
once

been

also

golf champion. He

member

Pine

was

Valley

apply. "(N. J.) Golf Club, The New York
the Stock Exchange Luncheon Club,
channels through which the prod¬ the Princeton Club of New York
marketing
We

uct

flows

public.

out

uct that is

supply

the

investing

have

must

objectives

you

readily obtain
you

of.

Our

common

in¬

borrowers

can

was

the

ers

fair

a
.

R. S. Piatt

cost

407 North

Eighth Street. Mr. Piatt

formerly with Vance, Sand¬
& Co.

require to provide for

needs

your

expanding

Forms Shelby Sees.
SHELBY, Ind.—Shelby Securities

communities.

Company,
*From

talk

by Mr. Reilly before the
League of Municipalities, St.
Petersburg, Fla.
.. .t
Sun

Opens

ST. LOUIS, Mo.—Richard S. Piatt,

down

narrow

suring that

the

and the Short Hills Club.

prod¬

properly advertised and

thought

funds

product

any

underwriters

cen¬

tralized. The towns and cities who

take this type of aid are and

and

trust

sum

officials

public

their

thusiasm.

other

you

greater

well

alternative
aid

Federal

sense

and sound busi¬

judgment.

our serv¬

citizens.

alwavs

community.

used in the exoansion of

you

called civic

can

There will have to

ices

nec¬

not

rash of unnecessary so

extreme

gives

even

While I have just said that these

Secretary,

and / class

for

Alumni

first

Commerce fashion but in the field
of

President,

nominated

the

mil¬

its prime boosters, not

among

University.

member of Princeton's Graduate

not

in¬

interested

long

was

Council

and

the

';;/■//"v';v

was

which

Florida

Exchange

trustee of the University. He was

that

for

Governor

Princeton's Class of 1928. In

own

support

member

directors

Governor

Hall

served

the

investment

prime

was

Princeton

the

buyers of tax exempt

are

both

and

find

citizens,

your

Investment Bankers Association of

your

will

you

the Association of Stock

1954.

deed fortunate because its citizens
are

into

theory. As the need for these extra
come

look into

you

community,
many

this situation will

now

ever,

looking at this

this

actuality

years

today. There is

good
be

far

willing

that in the

wager

served

board

poration.

lips

make

con¬

general partner until

Philadelphia Steel and Wire Cor¬

was

describe

Hall

the

used

illness.

buyers of tax exempt bonds. How¬

being

partner

his retirement in 1959 because

etc.,

1945 he became

tinued

in¬

"wealthy," privileged class

made

was

Morgan Stanley & Co.

not sure that I do.

However, being

partner of W. E. Hutton & Co.

subscribe to this theory and I am

would

the

Treasurer

Actually, I believe the amount

vestments.

"become

joined The Guaranty Company

affiliate

becomes

always

subject.

Government

our

being able to stand

what is
the

becomes

people at all times. You

words

realistic

of New York, investment banking

exemption by regulations and

by distorting the will of the Con¬

does

decided

Shortly after graduation

the

serv¬

all

not

Trust

that

•

Princeton, .Mr.

Field,

ices.

realize

Arts

Guaranty

urge

munity to supply additional
I

had

Glore & Co. In 1941 he

com¬

the

our

leaving

Company. Later he joined

will

Bachelor

cials of communities interested in

if tax exemption is ever

available

with

Before

Tax-Exemption Under Fire
Along

community in the years ahead. As
time

ated

degree in 1928. /
Hall

the-leisure

the

Tree

banker."

going

we are

interest cost is set.

run

ahead

years

provide

changing times that

sible for. Recently, I spoke before

the

can

improvements will be

new

necessary

what

our

Future Municipal Needs

turn

here

shown why.

alphabetical agencies that

the

through trust

want

market,

CFA

not

in¬

our

willing

greater

the

(who

principal investor in

even

found

that

Co.

the

without

good will and mutual

all

is¬

underwriters and

the vast body of
common.

com¬

you

back

niarkei where the security

bonds

your

talk—the

Underwriters' Responsibilities
do

will

money

back to

come

objectives—that

suers

respect

investing community.

this

theme

the

sell

choose

you

mon

that

ready market available to you

bonds. Therefore,

specifically the

look

suc¬

administration

underwriter, 'and
investor

how

stewardship has been.

that

failure

find

years

trembridmis change

attitude

the

and

bonds

•

community grows larger, interest
in

have often urged

that

You

agricultural

conditions,

people,

for their various services.

money
I

"pie"

10,000

same

should

which

ad¬

complex,

climatic

same

business

this

the

industrial

and

community.

your

with

size

the

use

have

background. I

each

number

of classifying

communities

the

image that is created^ about your
the

the

are

in that particular

make; usually determines proximately the

final

your

good

how

else,

everything

the

body. As

the issuing

citizens

vocated

Requisite

We basically

good

practices

of years the system

towns,

does

that

advocated for

have

the

ratings.

start

sheet,

"Pie" Formula

The

and

assumed

look

you

tion toward the securing of better

to the

type
may

mean

community.

receive a lower

it1

balance

necessarily

but

'this

that

there

of tax exempt bonds so that

mediocre. There

any, are

doubt

speeches about Moody's bias

fied,

their

general way: It is our

duty to help promote overall sales

jails are inhuman, and their hos¬

order of the day

rating than

their

that

V sub-standard,

are

conservatism, while

alright for you.

improve¬

in need of repair, their

are

schools

visors. It is alright for me

iri

investment

the

than

ments. Some of these places upon

issuing

and
to complain

un¬

They do this solely on the

the

about it'when you

high

carry

basis of their bank balances rather

not

job

which

States

and

communities

that ratings which I believe to be

Florida

about

back to the many issues that
defaulted in this state. I hasten to

cities ih

community should be¬ that
"pinch penny" type of

United

goes

one

operation. I know of cities in the

James F. Reilly

bias

inborn

It is

of friends.

with towns and

business to work

your

come

principals and
I

say,

and the financial advisor that
hire to always keep improv¬

that

rating

they

bank like this,"

ing the image of your community.
I
don't believe that this means

Moody's

hurt

underwriter need

the

abundance

I
a

with

but this is not true. You the issuer

agency,

running

don't need

and

have had

ing

over.

received

Sometimes

comments.

the"*7
rat¬

iMoody's

have / only

"We

by '"

liked

vwell

far from

job is

have told this to officials at times

ha Si

Coast

Richard

prietor.

Methodist

Schoentrup

Building.
is

pro¬

Volume

198

Number

6290

The Commercial and Financial Chronicle

(635)

lower, trade might

might

not

High Rates

have been considerably higher. If
one

assert

For International Trade

for

By Dr. J. H. Riehter, Former Economic Advisor of the Foreign
Agricultural Service of the
The

insolubleness

current

our

trade

with

talks

Europe

for

get tough in

negotiations.

our

attach to the unexpectedly growing

President

recently

will

Moreover, the importance

impasse is evidenced by the

still

!
-TV-

Kennedy's chief trade negotiator now in Europe

tions

the

this

30%

and
not

for

tariffs

know,

premiums

been

tural

dealt

and

"gate

livestock

appropriate

posture in the negotiations.

110%.(!)

products

These

and

unheard-of

shown

course,

would

policy" items
with

ments

GATT.

Riehter

Dr.

touches

outlines

cannot

considered

the

strategy and content

Plan will be
the

of the most challenging proposals;

one

Continued

evolving agricultural code within the framework of GATT in an at¬
tempt to maximize international trade and yet protect domestic re¬

Consolidated Statement of Income

quirements. Dr. Richter's former 35 years of governmental service
brought him front line experience with the subject, on which he has ex¬

tensively written, and he is now abroad pursuing independent research.
Six MonthsEmled
the

gotiations

situation

draw

and

general
and

ple,

should

acceptable

rules

for

not

take demi-gods

think that

our

fraction

ends

could

much

to agree

this

bill

too

governments to go into these dis¬

are

cussions

|b
I

a c

leave the

Dr. J.

— or

solution

"in

disregard

princple"

The

within

before

round"-in

so-called

"Kennedy-

calls

GATT,

and

details

for

plan,

of the

application.

this

hard

iail

will

contribute

procedure,

article

discussion

line

with

■

not

ents,
cent

into
like

would

Ministerial

reflect
re¬

Meeting held in

preparation

the

"Kennedy-round"; and on some
hspects of the interpretations of
this

outcome

that

have

available.

become

mainly

the

application

three principles for

tiations:

(1)

the

nego¬

Reciprocal,, equal,

commodities,
dures

(but

matic

ones)

with

special

generalized
to

linear

levels

proce¬

disparities

among

the

par¬

ticipating countries.

(2)

ment,
and

Accounts and notes receivable

Inventories.....

Prepaid

in the

not

was

for

of agriculture in the givetake

the

"Kennedy

■■■

for

countries

tariffs

make

exemption

linear procedure

j (3) Efforts to reduce barriers to
less

developed

June 30,1962

$7l8,038,000
63,002,000

103,441,000

97,673,000
3J
...

44^000

181,857,000

Property, plant and equipment

56,904,000

Investments

15,842,000

15,396,000

11,056,000

11,883,000

$273,108,000

$288,651,000

$ 27,920,000

$ 21,961,000

36,891,000

37,497,000

17,762,000

12,506,000

Other assets

that

such

16,779,000
66,680,000

Total assets

79,515,000

from

tariff

cut

States,

the

some

any

kind

cases.

The

will

too,

have

Notes and accounts

Equity

payable

Accruals and other current liabilities

•

to
Estimated Federal income tax

with such cases.

Liabilities and Stockholders'

of certain items,

perhaps exemption from

Also,
lusion
the

must be under

about the

nificant"

definition

what

tariff

il¬

liability

„...

"sig¬

that

"meaning¬

ful in terms of trade." There may
isolated

could

case

which

tariff

increase

that

shown

Long-term debt
Other liabilities and deferred income

Stockholders'

did

trade; and in that
tariff's

disparity
side

group

sidered
in

condition

that

In most
no

coun¬

4,058,000

83,088,000

76,022,000

39,385,000

77,222,000

5,132,000

5,799,000

7,907,000

8,858,000

137,596,000

J20,750L000

con¬

equity

145,503,000

129,608,000

$273,108,000

$288,651,000

"meaningful

have

cases,

then

Working capital

Book value per common

........

$106,218,000

$105,835,000

27.21

24.88

however,

history of trade

permit

the effect

comparison

upon

relatively low and

for

equity

Total liabilities and stockholders'

Ceteris Paribus

would

between

might

equity

Total stockholders'

the

item

trade."' (Even

Common stock

the high

what

that

items

the existence of

shown.)

case,

from

not being

terms

has

reduce

not

515,000

equity:

$1.25 convertible preferred

steep

long-term debt

Total current liabilities

that

disparity:

must be understood as

Current maturities of

limited value to

the

obtained

tries, without reciprocity.

June 29, 1963

189,306,000

that

trade of

round."

^ \ V

2,406,000

expenses
Total current assets

both sides. They

need

„

cuts

adjustments

there will be

Inclusion, by special treat¬

exports

our

regardless

high

for

auto¬

adopted

"significant"

tariff

that

and

necessary

also

other

cuts in tariffs for large groups of

cases

EEC,

position;

.....

which

"■

We know that the Ministers de¬

■

cided

•

com-

the outcome of the

GATT

these

the

equal

United

Decisions

through,

extremely

come

going

and

tance

•

The Ministerial

briefly

concession in order to gain accep¬

proposals

Before

$1.38

4,853,792

Consolidated Balance Sheet

Cash '

*:Jt '

•

commodities to agree to ar¬

will

agreement can result.

IV-^Av

$1.67

5,056,865

share
■1

and

linear

uniform

way

rangements

which, in the end, interna¬

tional

;•>

the

thought

the

•\

levels of present tariffs

that

soon

better

will-be

clarifying

will

and

superseded
from

hoping

•

reflections

the

promising

also

example

themselves

the

are

such

'•

problem

the

but

Among

plan's execution
In

give

propose

common

outstanding at end of period

Assets
•

some

and

analyse

products

economist's suggestion not only of

analysis

Earnings per

Tariff Disparity
V

suggest

today,

agricultural

the

and

•

policy

:■'/>'/V

getting effective arrangements
trade

proposals,

discuss

our

profes¬

-■■

task

—

administrators

sional

> 6,908,000

other governments' proposals.

ap¬

plication

makers.

ready

H. Riehter

5,602,000

8,647,000

prepared and with

well-reasoned

and

for

All

well

Net income..

even

here.

sit

12,510,000

7,75[7,000

and

| often

inclined to

16,404,000

by Aug. 1.

essential

$271^942,000

Federal income taxes

would

June 30, 1962

$286,263,000

Income before Federal taxes

agricultural

devised.

June 29, 1963

dealt

and

satisfactory

should

task

Net sales

they

disparities

what

trade

—

linear

deep

tariff

determined

how

agree on

and

speak

plan

proposed

how

be,

with,

princi¬

the

reductions, how

should

mat¬

set

was

negotiating

months, to

handle

tariff

way

ter

three

might be

tackled

Committee

elaborate

prob¬

Trade Ne¬

and, within the short time of two

analytical conclusions as to

how
lem

problems;

time

same

economists and advisors on
economic policy, we analyze our

If,

high tariff

These statements have been
and

are

subject to possible

prepared from the Company's books of accounts

year

end adjustments by certified Dublic accountants.

given item; and it will al¬
PROVIDENCE, RHODE ISLAND

ways

open

question

whether, if tariffs had been much

must

arrange¬

trade; and
be

negotiations.

Textron Inc.—at mid-year

and fears that

principle of reciprocity is endangered by the formulation of an

EEC's

segments

of the

prices, quotas, and commodity agreements; expects the French Pisani

could

being

therefore

both

forthcoming

rates

that

the problem of internal and international

that

separate

agricultural

they

the

imponderables of, and soiutional approaches to, the agricultural

new

the

understood

problems in the forthcoming international trade negotiations of a
negotiations;

be that it has

Discussed here are

Kennedy-round of Europe-American trade talks.

propor¬

they

precisely these "common agricul¬

ex¬

grains

answer

that

important to

included

to what

even

trade;

"meangingful in terms of trade."

long

calculations

substantial

EEC's

perhaps

high posi¬

than has the EEC

and

first

levies

affect

United

the

EEC

and
tion

that—when

that

tariff has

their

price"

example,

asked the

—we

tent

"equal 1 cuts,"

told

over

matic

realize

for

were

States

give-r

apply to highly essential products

ramifications

"disparities."

"significant dis¬
parity" could not provide an auto¬
answer.

cuts,"

aware,
we

other

vague agreements made

tariff

basis

right and the

reasonable

are

"linear

it,

deny

factual

Thus

wrong.

of the

conclusions,

would

one

what would be

trying to smooth the crucial disputes standing in thi way of the
the

would

were

and-take in realistic compromises;
the formula for the definition of

appointment of a Republican, former Secretary of State Christian
Herter

these

other

have to rely

prompted Secretary of Commerce Hodges to declare it may be time

proving the

other

jJnited States

the

pariiss

.two

one

while

there

the

There

page

The Commercial and Financial Chronicle

.(636)

Production

Steel

Electric
■

by the Chronicle, based upon tele-, pressive

Output

graphic

Carloadings

The State of

cities of the country,

the

for

TRADE and INDUSTRY

indicate that

Failures

possible

Price Indes

Commodity

United

the

ings

for which

States

those

above

12.4%

were

the corresponding week
Our

expansion

business

current

The

associated

been

have

build-ups

Chicago

been modest when compared

August

in the

states

has

that

since

elapsed

the

periods

The

began at earlier expansion peaks.

The

electronic

into

intervals

three-year

the

following

of the gain

This

upturns.

them

ically,
also

748,810

7.0

Kansas. City

500,000

457,618

9.3

1,000.000 .,*6.4

minimize

are

Cumulative: 1963
,Above

the

Output Is 12.3%

1962

Period

port

For

out,

the

August

major

in; August

the
Al¬

orders

20%

behind

mills, /.orders
running

are

July.

Iron ' Age

factors --behind- the

disap¬

•

pointing/-order; rate .include ■ the
inventory bugaboo,

laws

in. steel, ingot

summer vaca¬

shutdowns/- by •

lead

pro¬

stop; Steel,pre-

soon

time

The

in.

weakest

cold-rolled

are

ether; auto-related

picki^iri/^

A'. A;

ordering.

products

mand,

producers/alreadyxer

a/silight

ouU* that
no Wis

right

some

far

: says-

Last week's operations of about

According to data compiled by

diets.-Some
■

points

many
steel
heHVto business.; consumers, and the trend to short

The decline

duction will

side,

positive

credt

tax

below the

of * seasonal'-coldrums.

investment, tion-

tons

year

This

disappointing.

are

depreciation

Federal

granting of

Age

has' bottomed

mC-

in /our

this

tons.-

though the order rate apparently

June-

million

market

*• midst

tax

Steer&>1.9% Decline Marks Tenth

c.ramat-A Drop' in Past Eleven Week&'But

showing increased friendliness to¬

and The.

801.255

;

ward. business.

possible by

rising

steel

1.9

Boston---,..:;

material,

policies

Iron

employer

has

V,
+ 14.0

control

may

user

year

peak reached in 1962.

a
snowballing effect.
..The,-national administration

•

1.064,000

the

likely

1962 *
$16.327,749 $14,322,466

Chicago::-.::T'" * 1,233.032""' 1,209/640

overstocking that tends to deepen

in activity at the end

big

"The '-.updating

1S63

York

New

big

for':
.

16.8

full two million

this

bfelow.-l962. Inventories

end

totaled

demand

increasing—-and this .forward

1000s omitted)

Philadelphia

processing

from

but

made

data

produc¬

efficient

inventories

keep

magnitude

the

reveals

approach

run

recessions

subsequent

through

increases

further

tion.

that

duration

similar

for

*——

Aug. 10—

further and/thus /provide, support

interval with

this

compares

follows:

ters

strong

......

the

A-

expected

psychology is optimistic.
Business momentum has been

comparative summary, for

Week End.

likely to rise

are

high.-

accumulation

well

was

Public

$26,619,week

same

the

ventory-

was

eonsumptiori

are

going strong.

were

sonde of the principal money cen¬

inventory of steel, busi¬

inventories

ness

pre¬

vious, expansion peak in 1960, The
Bank

backs in

the

and

tion

Our
.

period

three-year

the

for

Construction,

1962.

with

sales. Aside from the current cut¬

issue of Business Conditions..

Taking

556,831

New.. models

autos.-

last year.

totals

against

$29,920,422,608

with periods of rising activity in
the
strongest
the past. In the present expan¬
peacetime upturn of the postwar,
period, the Federal Reserve Bank sion, the rise in inventories has

promises

preliminary

continues

clear¬

weekly

obtain

the-;-' buildup.,

and»steel

extend

it is

sintc

moderate

;

Saturday,

10 clearings for all cities of

Aug.

Production

Business

ended

week

Index

Price

Auto

chief

Trade

Retail
Food

from -the

advices

Thursday, August-15, 1963

de¬

sheets

and

products,. tinplate , ^and^Astainles's;,/ Brodiu^t& Ain

56% of. unofficial -capacity are apyA strongest derr and

galvanized,

are

proachiug. The- • level/at which an -plate. Vandysome structural, vV/4 /
A A. - A the.American Iron and Steel In¬
uptrend
will* - start. * Output: -this yyIr.cln*Age '-Ep.ys the/ new;import
Favorable Labor Developments.
stitute',
activity attained at the earlier
;-:pl;oductlpn;/fq^!^0s- week week, ' however* will' be-.-less.'Tirah" tariff - recently/ imposed: ion-pol¬
Major\labor
disputes
have
been,
ended
Aug. 10 was 1,748,000 tons the
peak.
• A ;. ;-v V;/.
/
■/'••/;
1,740,000/ton^/that:(SteHyesti- ' ished stainless' sheets will- affect i
avoided
thus
far, while earlier (•••93.8%) as against 1,782,000 tons
On this basis, only .the 1348r51
.mates .were poured iast week.
the stainless market byV.Novein-r/
business upswings were marred
(*95.7 %) in the. Aug. •: 3 ending
period, fueled by pent-up demand
: IDespite' The .decline
in
stainless• steelingot-, her.. <■ Imports- / of
by
dislocations
resulting
from week. The week to week output
carried ever from the war period
prcduction,
pToducts have- been flooding the.
Steelyprice
com¬
shutdowns in such important in¬
and later bolstered by activity as¬
dropped! 1.9% and jt marks theposite on
scrap,
a;
steelmaking U. S. mahket. -Until- the loophole
sociated with the Korean conflict, dustries as coal,..autos. and steel... •tent-:+• weekly- ■ decline out of, the
■raw- materiaUM-psc.JUr index; on
was' .plugged,;.-, polishedstain less
In the past three years, idle man.
past • 11 'weeks. ^ Last week's de¬ NoAT-.
outperformed the current; period
heavy: / melting:, grade , wasy sheet was imported and. marketed,
cline
/days
caused
by
strikes
have
aver¬
edged
below A the
1957-59
:—
and
that ■ performance
was
wp 34 cents* t0i:$2.6.67 a. _gro.sk ton;J as much
as-18%./under U. S.
aged well under .20..million..an-,, baee- period's average weekly• out¬
marred by the most pronounced
indicating underlying strength: -y domestic prices.,-'//A ;
/+;,
put and was the lowest produc¬
price inflation of the postwar pe¬ nually.
/ / Until automakers /step:up orders; ; Trpnj,Age, adds these-• regional
:
Irt
1952, 59* million'idle' warr tion 1' since' "the A Dec.
riod.
29-ending for
(1964 ..model rung;/There dwill 4 market/reports:. AA ;AY'v
•>
days were caused by strikes, and; Christmas, holiday week!/.'A
Industrials production,..; for
ex¬
be little change in the: steel:mar- ;
^'Pittsbiirgh <-r—\The .decline in
in.
1959
the
loss
was
69
million.
The
year's
weekly-high
was
ample, has risen almost twice as
ket.f Construction,• is the market's-' steel demand has- hitPittsburgh
the
possibility of 2,626.000/net tons achieved May
much
as
in
either
of
the
two However,
mainstay,:P 1 a t.e s,
structurais, mills hard. Mills are.
running at •
previous periods. The current in¬ crippling strikes—particularly in 25-jending. week unequalled in the
beaming-. ,piles, y and
galvanized : about 60% of capaci y -'(base'd on"
terval has also bet'.ered each .of.. the railroad.Jndustry—remains...to. past-two years-and. last equaled in
sheets .-.are the : products, in best./ 1960
figures),/well below the in-the
generally
favorable mid-March, 1961, The Aug. 10these two earlier periods in terms cloud
.demand. /• h/.yV
-//"A .• custrv average-Mills are getting
outlook for the period ahead.
of
total
ending week's,/output exceeded
spending adjusted
for
With
the
1964/ model ./run
of a ;litt1e nervous about the
timing
While
it
is
price changes.
unlikely that the last year's week by 12.3%.
automobiles u n d e r w a y. Steel cf a
recovery of demand. Orders
For the
The rise in employment in the
11th
week in
a
row
important auto and home-build-points out + oneysignificant. factor •for Se_Dtember are
running behind
current three-year oenod through
ing industries will be able to ex-5 this year, the cumulative Total about 1964model
programing: August.
However,
this
pattern
mid-1963, while less .than in the ceed their extremely high first-; output of ingots and castings since
Fewer compacts will be built.
was not unexoected. It's based on
1953-56 period, was greater than
half operating rates
during the Jan. 1 topped the year-ago period
The trend away from compacts
inventory reduction by users ag¬
with
a
total
of
in the 1957-60 period.
remainder of 1963, other sectors
70,848,00Q
net in the
1963 model year meant that
gravated by shorter lead times.
Prices have been very stable,
tons
in the: economy can readily sup¬
(£118.8%) -whicfi'fis2.3% steel
/ consumed y per
car
was
with
the
wholesale, price index plant these as sources of strength.
above the Jan.
Chicago—Steel mills in Chicago
1-Aug. 11, 1962
slightly higher on the -.average,.
report a disappointing order rate.
changing less during this interval
production of 63,079,000 net tons.
The darkest spot in the current
Compacts accounted for 32% of
New orders placed in August for
than in any of., the others. The
*Index of Ingot
picture
is
the
disconcertingly
1963
model year production vs.
Production for
consumer
September and later delivery are
price index has risen
Week
high
level
of
Endingunemployment,
35% in 1962/
y
District—"
running 15 to 20%-* behind the
somewhat, but only the 1953-56 which
Aug. 10
Aug. 3
has
mounted
to
higher
Steel
shipped per vehicle as¬
•..North
E'ast
Coast__2_
91
94
July rate. Products related to the
period had a smaller increase.
levels in each of the successive
of

each

period-.over the

level

downturns.;

•

;

Buffalo

Some

observers

again

sug¬

are

gesting that the current upswing
be "getting tired." It

may

months
the

old

1854

But
ful

June

term

average

since

is only

this

1963

and

of 26 / cycles
30 months.

reasoning is of doubt¬

relevance—peacetime
have

sions

was

varied

from

more,

the modern

Further¬

economy

pro¬

10 years ago.

even

There

expecting

the

continue

riod

have

been

pe¬

broad

inflationary

developed

that

would

but

year,

trend

has

make

the

vulnerable to

economy

many

adjusted

down in the past

the

most

volatile

have

risen

mid-1961

sectors

capital

jobs

new

has

with the growth of the

St.

Southern

Building Permits in
Cities

Slacken

200

Further

Largest
in

Continuing

down

consecutive

ond

since

Inc.

for

the

month,

sec¬

total

the

lowpoint of the preced¬

far

the

lowest

below

totalling

this

fallen
1

-4.9%-

June-last

the

and

possibly

this

increase.

plant

and

6.6%

with

8.4%

equipment

total

for
are

1957,

just

awards

that" permits

the

month

issued
year

the

ahead

was

cities

months

have

construction bolsters this view.
Low

Inventories.

Inventory

tons

Production

in ( the
8,651,000
steel

and

July

1963,

for

com¬

and

half

first

biggest

1962.

for

volume

pre¬

tons, in

the

1963

first half

Steel

from

the

second

first,

dicted

record

half

Steel

12.4% Above .1962,

Week's

Volume

nudge

half

could

carry

part

third

$174 billion,

•year
in

clearnings

statement forged

the

ahead of

latest
a

year

Preliminary figures compiled

good

the

pre¬

predicted late last
managers

Steel. survey.. Favorable .fac¬

Steel

inventories

ticipation of

half include:
built

strike

but

markets.

all

those

chinery, fourth,

containers,
■

and

ma¬

are

Headed

Normal

Back

Level

the

other

hands

consumers

and

being

are

rush

highway

construction

increased the demand

jobs

has

Ohio for

plate and structurals. Also, some
parts suppliers have had re¬

leases
and

for

parts

for

coming

are

market.'A Auto

steel

models

1964

into

back

the

inventory

liquidation is still the major prob¬

But' indications

slow.
auto

encouraging.

automakers

plan¬

are

level equal

the

than

higher

1963

production schedules

models

1964

•:•

ordering

August

—

Most of the

good

quarter is improving.

'VDetroit
very

for

outlook

the

but

lem

fourth

ning to produce at a

By the end of September, steel
in

plates

capacity rates,

near

Cleveland—A

record

slightly.

fell

Inventories
To

in (an¬

not

rate

for

models.

tween

national

this

point,

re¬

labor

and the high

year,

days

following

the

rate of industrial

ventory

early

its

special
nr>ir»t«

final phaseouts of

tion's

Reports said.

statistical

The

fixed

record

the

inventory study,
Olit

that

the

in-

include

about
1964

ally,

uncounted
*

units,
week

this

said
will

changed

Addition¬

"pilot"

Continued

which

model total

1,600 cars

'63

fashions:

over

agency,

7,342,000

output

plagues

as¬

sembly of its 1964 models, Ward's

that

na¬

week

work-a-day

general

began

industry

the

this

industry

auto

program

Concentrating

Models

record 1963 model year,

in¬

end

liquidation

Ann

activity and in¬

the current steel market.
In

1964

Automotive

settlement.
says

Start

Makers

Overlapping

metalworking

this will be close
normal level for the current
Age

dicates

Auto

loy point, 61 days in

March

Age

this is mid-way be¬

says

the

Iron

Aug. 14.

weekly

Irnn

op¬

inventory,

days

ported

second

total

metalworking«•

tors for the second

biggest, market,

The
year

billion

magazine

the

gain of 1.2 million tons

construction, the
biggest market, increased

7%,

steel

little

this / year's

was

Aug. 12.

for

out at

slow de-.

very

sizes

structural

turned

auto

almost

Shipments f. to/

Usage

$170
is

accounted

steel, shipped,

record

Galvanized,

warehouses will be down to about

Metalworking sales for the
total

industry's

year').: ;■>/'.

principally; cold-

are

however.

and

auto

sheet,

some

automakers

knockdown, drag-

singlehandedly

will

(when

industry,

mand.

threat), 2.52

(.when

1959

(the

the

v..;

1962.

1961

strike

Automakers

against 60,272,366

during the comparable

Means

threat

auto
rolled

for

Trend Away From Compact Autos

for

initial

shrank

for

total

months

seven

strike

tons
no

production

Steel

production

Aug. 9.

The

enjoying the largest

aggregates

tons'..during

Institute

67,894,320 tons,
tons

volume

Steel

The'

$4,570,424,311,
of

6,174,187

liminary report of American Iron

first

200

and

A shipped

out steel strike), arid 1.96 tons in

1957-59.

ingots

1.68
was

prepared for

.poured

with the two

steel

average

levels.

Bank

ago.

95.7
on

July 1962, according to the

month

mixed, however,

Bank Clearings

there

for industrial

year),

103

1963

six-month

increases and the recent strength
contract

116

furnaces

States

h i

v e

this

107

prior

102

year—the first time

the

1962

;

109

second

period last year, in the other ten,

about

(also

93.8

Steel

castings^ during

running higher than in the similar

the decline that started that
year.
This
suggests room
for" further

net

spending compared

.1962

tip Sharply From Year Ago

United

new

acceleration

Outlays

for

Steelmaking

building

half of 1963. While 15 had permits

continuance

113

production .based

production

Total

ebb

point

109

pared with 10.365.154 tons in June

first six

picture

per

12.6%

some

tons,

1955

downturn, the cumulative total of

the

industry4.____

Seven-Month

short of 1962 levels.

this

That's-hardly

compared

133

tons

first' half.

$802,365,368

year

Despie

excessive

building

dollar

least

weekly

February, this volume also

slipped

year's

93
98

Total

permits in the nation's 200 largest
cities shrank 11.3%
in June to

street,

June
"Index

cities pushed up to

expenditures

Louis__-_i_-____.

•

One

moderately since

Cincinnati

force.

permits

136

_____________

2.04

was

/„•

Chicago

sembled

!—

Cleveland
Detroit

—

Youngstown

not

ing recession. Present indications
to

Pittsburgh

cur¬

Western

Expenditures.

spending,

labor

general

price correction.

Capital

pace

charters

Stability. Prices of

commodities
up

expansion

substantial

time:

Price

for

reasons

current

for

growth

kept

Despite

highs in employment,

$763,199,976, reports Dun & Brad-

several

are

the

expan¬

foundly changed from that of 50
or

rent record

endurance

months.

periods.

recovery

___

units
naae

of
46

Number.6290

198

Volume

The Commercial ancl Financial

call attention to the fact that

to
with

only about 30% of non-farm

labor

into

and

Social and Economic Trends
By A. W. Zelomek,* President*

come

Inc., New

this

necessary

have

be¬

CHICAGO,
*From

sufficientto

been

current economy

the

exc

minimum of [unfavorable factors

Currently

ing phase

of the economy rather

in an expanding cyclical phase, a

States that though we are

would

stimulus

Suggests

not

economic

uninterrupted

assure

advance.

would

through
good part of 1964 is favorable.

does

This

domestic

and probably

of the year

not

regard to the higher labor
While stressing

However,

outlook

p s yr

o o m

especially

uli.

some

but

to assume

stimulus,

would

but

provide

would

for

rest

the

costs;, inadequate.

the encouraging
of

the year

our

whole

reorientation

economic

essential, based

been

approach

of
is

socio-economic

appointed

J.—Philip
engaging

Burns

F.rst

—

Edward

Securities

Corporation,

Stock

Sudler & Co., Ameri¬

With

J. Sturgis May

HIGH POINT; N. C.—Robert W.

111. RfcH has been added tQ the s(af£

Street, members of the

York

William A.

National Bank Building.

has become affiliated- with

Corcoran
New

can

—

has been added to the staff

of Amos C.

Exchange.

0f
:

Sturgis

May

Co.,

.^period: cannot
out if

months ' effecJan.'

V The
would

;

iiberal-

spend
v

•

—-v-

atmosphere.

While

-this

and

positive

wouldv}c r: e a I e: -a.v very
?-y:-L

general business pr.ospepts

"currently -are' favorable,; the; un-

situation is ,dis-

employment

;,We

couraging:

;

anomaly of

retail

and

below

decline

billion,i annual

$590

fourth

factors

economy.

This
in

halt

some

lation

un¬

current

the

allows

even

inventory

for

accumu¬

result of the avoidance'

strike. There has

steel

reaching
in the

rate,

minimum-'of

favorable

may

with

even

quarter.

>There

evidence

national: product

gross

propor¬

in unemployment.

civilian 'labor4 force

the

not

but,

trade,

decline

fact, unemployment in relation

product,

employment,: income

production,
tionate

high in general

national

business, rgross

the

have

may-

new

been

inventory

ac-

•

similar-

cumulation

other

'periods of rising economic activity.
•

inventory

accumulation

cycle,

the avoidance of
well for sustain-

•

excesses

ment

of activity over the longer-

-v

•'- V "

term.

the

augurs

[ business
v

importance

the

Considering
'•j

;

.Greater capital expenditures, an

•

of.

increase

5%. in

retail

tra^e as well as a further gain in
gaver-hmeiYt' spending
'

the

will

higher

.tribute

tional

spending.

con-

gross

will

na-

Helpful, competent service and

"The Voice With a Smile," whateveryour needs may be.

Photo shows Mrs. Barbara C. Fandel, a Bell Service Representative, talking to a customer.

also

contribute to the increase in total

[L output.. However, it is important.
that., the -increase .in "spending. for

"It isn't

,g9ods come .closer to the high rate
ofNgain in spending for services.
'

There is

doubt that the greater

proportionate gain in spending for
'

services

has

sustained

contributed

h i g h

enough that people should merely accept what

do. Our job is to

unemployment

enjoy..'And
this is

level.^An,'-increased rate bf gain

give1 them service they positively

little

great one."

in gross national produdt may not

[
-

the

solve

unemploy-

problem of

ment, for there is no question that'
the

•

service

FREDERICK R. KAPPEL, Chairman of the

Board, American Telephone and Telegraph Co.

industries > require

•

hands

fewer
1

for

dollar pro-

each

duced than goods.

The challenge is with us every

Reexamination of Our Economy

day, in everything we do.

whole

the

reexamina¬

also the need to

[ ica's

position-

J world.
,

scene;

cline

Our
has

problem
r

ments
world

reappraise Amerrelative

changing

brought

in the

new"

are

needs

consideration

for

the

and wishes of every one

serve.

speed ' and efficiency

socio-economic

structure of the country " There -is

utmost

This: necessitates
tion

added, there is

increased

obligation for courtesy and the

V We try very hard to make that

policy come true..

•

•:

the

to i

American

with

de-

gold supply and the
balance

our

position.
markets

pay-

Competition
has

■

the

intensified

North

Carolina National Bank Building.

etiology at the
*H

the

Amos Sudler Adds
DENVER, Colo.

With First Securities
N.

offices at

1542 Pine Grove Avenue.

Foley

manager

Street.

Opens

securities business from

DURHAM,

Wer¬

Chicago office, 135 South La Salle

III,

Fromhertz,

111.—Charles

has joined the staff of Loomis,

Sayles & Company, Inc., and has

Trust

uninter¬

continue

cut

tax

Hanover

City.

WEST FIELD,

T„

boom.

mean

industry,

to support

ner

Moran, Senior Vice-

Manufacturer?

York

at the
Luncheon

Division

P. F. Fromhertz

without necessary stim¬

ruptedly
with the resulting need

outlook for the rest

The economic

New

Zelomek

Mr.

honor of George B.

Co.,

expand¬

phase,

foolhardy

will

this

that

readjustment

of the economy.::

structure

economic

socio- "

reexamination and reorientation of the whole

than

tax-cut

are

Finance

prevent

pt for the problerirof unemployment.

and

President,

readjustments from time to time.
Business economist finds there

talk

Factors

stabilizing factor, it has

Loomis, Sayles Branch Mgr.

service economy. Although

not

University of Virginia

Business Administration,

1964,

manufacturing,

International Statistical Bureau?
York City and Visiting Professor. Graduate School of

v~~($37j.t

Chronicle

SERVING

YOU

Financial Chronicle

The Commercial and

and

Business' Shortcomings

who

men

duct.

Chides Business

General Partner, Broivn Brothers Ilarriman
York City, and Former Senator, U.S. Congress

By Prescott Busli,*

%■

& Co., New

loose and extravagant conduct by dis¬
invaluable insight as to how improper conduct appears to Congress. Noted are such ramified effects
as the disadvantageous bargaining position of business with labor
and its adverse impact upon our international balance of payments

strong rebuke to business for

^
'

He, also,
reduction at any cost,
for failing to "speak out" to Congress, and for its feeble approach
in influencing public opinion and Congress compared to organized
labor, Constructive suggestions made are. prompted, by fear that
businessmen will repeat the errors of the 1930's and not oppose
today's "Alice in Wonderland" economics font. M

■

being our largest and

York

New

commercially

state

active

most

York

industrially,v and New

and

being the money center of

; City
the

world,

be
an

ation

•

such; as J

State

.York^.

Bankers

Assoria

do
;
■

;ion{.:

that

one

can

thje

Federal

and

grow::

and

Here
took

in the relationships between

gov¬

relationships at both state

the

year

It' has seemed to

year,

during

tVilkie.

not

.fully ;cojhprehend thje balance bertwderi their/'privileges- and • their

duties—particularly their respon¬
sibilities .to{ government; : Many
tend to sail along with a detached

ment
their

though

something

responsibilities,

(forv the

govern¬

something apart from

was

{other fellov/" to worry

sentative

that is

form

our

theoretically correct.

so."

-;{/

•

Members of both the Executive

went

Wendell

was

'strongly

are

stant

heavy

pressure

groups.

and

organized
They
by the

pressures.

it.

The

right

availed

take the awful

Willing

was'

beating of

seemingly heavy odds.
Were it not for the

the

issue,

war

have

been

opinion
less

of petition

aplenty,

small,

or,

plea

is in the

but

suf¬

not

busi¬

stated

likely
This

1940.

authority

by no

the

than

late

businessmen
to

its

fully planned and executed
with

the

Legislators this

New
year;

explained this to
The
this

personal

connection

York

care¬

exer¬

State

Mr. Meunsch

contacts made

reduction, if
I

expense

for

come

careful

business

to take

inventory of its-habits of

„

should

Business

ac¬

ing its habits by

than

more severe

own

tive branch

The

but

generous,

tone

the

set

angry execu¬

disillusioned

Congress, made

sus¬

men

from all walks of life and a

variety

tightening

wide

and/profes¬

business

sional

pursuits,

allowance

expense

come

with

groups,

bank

have

carefully

/The

wants

which

offended

So,

will have

nothing but their trou¬

Having
United

thirty

States

and

the

business

brought
from

heavy

1933

they failed to make
of

lion

There

persons.

over

nine

when

war

dent in the

unemployment

nine

mil¬

were

still

over

million

broke

unemployed
in

out

Septem¬

write

active

businessmen is far

with

government;

effective

One

volumes

several

Deficits

Planned

the

Face of Record GNP

tration

falling back

discredited,

the

same

policies and

unproven

huge defi¬

cit of ten to twelve billion dollars

top of this year's fiscal figure

$20

million

deficit

the

two year deficit

This,would

plus.
highest

two

combination "in

year

peacetime

alarming I is the fact that

deficits

these
face

new

are

planned in

not

the

high records in both

GNP and National Income.
do

serious

even

economy, but

The

can

try

to'

balance

such

our

booming

instead deliberately
expect

I sat in the Senate last year

and

accounts.

balancing

rich.

make

balance

economists

the

goal, but to

there would be
us

budget is

balance

prosperity

poor,

because

deficit to make

make

sure

account

pense

and at this

Knowing Your Congressman

firm,

But freedom

reimbursed!

sion,

inconvenience

ance

So,

direct

and

of"

result

plea

-my

ship

-,;

listened

resulted

the

law,

debate

this issue.

tightening

leaving

the

Service.

im¬

because of the obvious

abuses of the privilege of deduc¬
tion

for

business

It should

Out

came

Labor Unions' Economic Power
j

;*/••.

-v

One

*■

ly. v, ;■

the

charges of

This affects
It
of

and

recreational

items, rather shocked the Senate.
What

reasonable
for

Yachts and

the

could

excuse

particularly affects

Jacobsson

take

maintenance

Hunting Lodges, Lux¬

any

place

must

consequence

during

can

pf-ices

of corporation

vacation
few
•

which

proval,

spirit if not the

resulted

rather punitive

which

were

at¬

some

proposals, most of

finally rejected.

our

turn,

affects

causes

deficits
moves

really

make

some

reduce the basic deficit,

fects this
of

our

For

How much

world

huge

expenses

sta'4,

deduct

for purely personal

labor

his

Congressmen.
businessman

better

much

off,

will

stronger

if he knows

a measure,

Congressman.

thing to do is drop in

the

So,

call upon your

either

his

favor

call
It

You

have

simply

important to de¬

equally

office
you

interested citizen.

velop

ask.

Congressman,

home

when

Washington,

relationship of trust and

interest with your
and those

se-

state legislators

active in local matters,

quently; originate.

sees

privilege

•

;

expenses

him

you

Complaints
are

upon

able to congratulate
vote he has cast,

some

public position he

has taken, so much the

power

level,

Praise Is As Important As

v-.

'if

living.

tolerated

executive

leaders
are

examples

abuses

do¬

leaders

extravagant corporate

much will

the ball

stronger will be. the

providing

labor

that

tion, education, and other factors
influencing the future most fre¬

budget and the

contracts

not

most
r

for it is here that matters of taxa¬

ing their best to control
and

the

know

directly af¬

feel that business

business

in¬

the

upon

position of business in negotiating
labor

lawyers

depends the integrity

defense

and

—

hire-a

they

them—but

our

ponent of

heading for trouble that

disastrously.

the

ence

and

balance of payments

affect the whole free

vantage

the law

stitutents—the voters—who influ¬

troublesome

our

get down to the root

and

are

may

our

businessmen would take such ad¬

quite know

in his position as advocate or op¬

competitive posi¬

balance of payments problem.

was

important is¬

constituents, for it is the con-

much

possible.

affects

expressed that

Resentment

don't

selves—they must carry

make

rurity of the whole free world.

•

These abuses of privilege, these

law, created

from the businessmen them¬

come

bility of wage levels

the

the really effective approach must

But

use

approach the problem

advise

there

purely
a

with

they

frequently

So,

—

airplanes

only

period

stability

some

progress

lucidly explained, no

vacations, the

the most obvious abuses?,"

"special

special bill.

experienced

Per

tegrity of the dollar—and the

trips," to mention

—to

rate

our

fact,

urious Rest Homes for executives'

for

they

Washington lawyer to help them

unions,

issues.* • •./

so many

growth.

Unless

personal

of the

issues

of the. great labor

power

corpo¬

The evidence of charging to ex¬
pense,

great

tion at home and abroad, and this,

particularly.
have arisen.

never

and

how

expense—travel

and entertainment

govern¬

that

fact

their Representa*

contact

confronted

both,

really not business at all.

constantly rising
arose

the

They find .themselves suddenly

that

growth
come

lies

relation*

the

acute^ concerned with

the stockholder
or

with

businessmen

tives and Senators unless they are

sue

exact

Why did the issue

ment

with business. expanse deductions
are

trouble

issues,

Government,

misuse it,
: {

not

it.{{

seldom

large and small.

the U. S.

wisely,

One

unt

is ; for

here

{ Let's not stick
or

We must

abuse

annoy¬

businessmen^at all levels of busi¬
ness,

protected

use

confu¬

businessmen,-.'".a
•

must be

by responsible conduct.

writing, I haven't yet

But I repeat that all this

greatest,

ex¬

own

the

become

in the world.

thirty minutes

how to submit

day is the overwhelming economic

{{'{{J/?;

mosphere of suspicion and disap¬

Administration

th^t

say

faced

problem

ex¬

exist

about

figure

rate living.

eight billion plus.
Thus we face

It took

richest, most successful nation

convincing members of Congress.

all?

the Adminis¬

see

America

the

;

pense

Accounts

business

now

the

enue

Record

would

{business¬

plementation to the Internal Rev¬

ber, 1939.

still

The personal petition by

have

■

boon

—

to travellers indeed.)

in justifiable abuses pf privilege by

going to the

between

their

and

Right

Federal

1939;/Yet

the face of widesperad

expended.

years

Senate,

■/;., Expense

community

heaven for the Shuttle

1-.

has always valued its
Wednesday; on the Eastr freedom. We revere the free en{
i r 1 i n e; .Shuttle.
(Thank terprise system. It has enabled

ern

Business

especially interested in the: greater ijogree of responsibility by

relationships

rewarded

effort

v *"'•*

pains."

spent

active business before

been

back

the Irishman said—"They

Wilkie

Wendell

business trip—left oil Tuesday,

been

■•'/{: {K
{ •'* .' ;• {..; /, //,' this subject. But I will touch only
{spend and elect" policies on a few broad points, f

planned program of education feel
the time and

token

nation.

doubt that those bankers who par¬

their

only

nothing to corporate and upper

could

procedures, again

this year, which

the budget?

and

active

the

politics

any

letter

doubt, will go to the lowest in¬

world

its

situation strongly suggest that tax

Republican nomi¬

budget. under

me.

the

that

plan record deficits, when in the

for

far

are

While Congress is

Businessmen apparently do not

tive

has

to explain.

easy

for

than

action

officers constitute the most effec¬

ticipated

rules

new

allowance, not too

anxiety

reduction

tax

violations of the

approach,

fortli

three times and I believe the time

men.

Wilkie for the

congratulate the

New York Association

cises

economic

back.and

•

Those

swing

Effort

the

seen,

itself and not be driven to reform¬
The

responsible; attitude in the busi¬
ness
community?
{

men

history.

want

the

Taft, who opposed

establish

speak out.
I

shows

ble for their

would

Yet today we

and

by leaders of

on a

Business
for

injection of

elected- in

was

from

individually."

hurt.

j- v

have

pendulum

entertainment.

and

letter.

postscript

Senator Robert

ficiently by business groups, large

ness,

can¬

against

nomination

and

'///'•/. deliberately planning

-'/{i.

Constitution
of

con¬

No doubt about

•/"

Federal

under

definitely influenced

are

biisiness

spending counting

appropriate

individual levels.

that

Legislative Branches at State

and Federal levels

up,

repre¬

government,

one

believed

thirties

Practically, "it ain't necessarily

and

the

deficits

under

course,

{

in t h o se applying to government
picious Congress.
inaudible whisper—like workers who travel on a per diem

almot

observe

stood

one

coat' and
a

general,

about.
Of

•"""

controls and reductions comes

that

Senate

businessmen/ do

point of view,r

for

mand

in opposing the political trend of

didacy

many

Out

Spoke

there

Such

importance from

too

Who

his

off

and national levels take on added

years

grow

into their affairs.

and

'work.

happened in the; ex-„

Prescott S. Bush

ernment and banking.

/long

tax

members,

These

Government

arid inject itself

One

including guidance and assistance

•/

•

{

many

helpful things
for

But

over-correction

account issue.

Now

..{

friendly to business. This I be¬
result of flar lieve from
long personal contact.
Wealth"ywbre scared to open their, ;; How can we expect the Con¬ grant abuses of the travel privi¬ But its willingness to be fair and
•-mouih{ on public questions, fear¬ gress to bear down on the expense lege^ its improved regulations:are. reasonable in legislation affecting
ful of some ^political reprisal that side, reject the highly pressured not so severe as the new Internal business can be
injured by ex^
Revenue
Service's
rather
new. spending measures, and, gen¬
fuzzy
would "hurt their business. *
amples of reckless conduct and
erally
act
in
a responsible manner regulations for the business world.
So they stood, by and watched
behavior on the part of business¬
if they see a lack of thoroughly
I went to Boston last month on

expert, ef- {
ficient associ¬

..the New

al¬

during the thirties

I recall that

such

for

needed
many so-called "Economic Royal¬
make the reduction effective.
ists'.' and' "Malefactors of Great

banks:

served

fervent appeals
reductions, the de¬

government

{reason.,' why;-,
the

and

place in the sun.

there is every :

should

legitimate

concern¬

Calls for Voluntary

lead

conduct. :

ing of every dolla? spent on travel

But despite the

has a restricted,
sometimes useful

too

though

too sensitive

ment.

President says.
.

Lobbyist,

I Professional

the

be thought

favor by

the solicitation of

than

during and after the great depres¬

rates. who never abused the privilege of
conduct, and tighten the reins oh
They should. Such reductions are deductions, both'corporate and in¬
expenses
all along the line but
perhaps more needed than any dividual,. are harassed by a con¬
particularly in the area of corpo¬
other single thing, if we are to fused situation
apparently calling rate
living, travel and entertain¬
"Get the Country Moving," as the for the most meticulous account¬

chfdeS business for seemingly favoring a tax

;f*

before,

sion of the thirties, perhaps I may

con¬

income

personal

fiscatory

punitive prodding.

not wait on Congress'

its conduct and

executive job

things happen in

way

and that has
pense

sta¬

and

economy

Having lived and worked in
responsible

setting high

the other side.*.; This

Abuses

high corporate rates and the con¬

voluntarily improve

rpdsitlbri."Mr.; Bush recommands business should

;

country.

our

reductions, especially for one

tax

standards,

privilege by business¬

should

usually the

loudly endorse

Business leaders

of ethical

for

bility of employment costs?

result, the pendulum has ing loose and extravagant business

swung

pression that tax reduction is so
essential that any cost is cheap.

tinguished former Senator provide
..."

fought

given the im¬

Business has

arguments

//;/{:,.{{/{'

really

not

has

Business
this.

Thursday, August 15, 1963

be¬

ethical standards of business

Wonderland!

Alice

abuse of

New

To me, it sounds more

Frontier?

Recommended Correctives

relaxation

sound

this

quite general and reflected

come

ing.
Does

This practice had

purposes.

whopping deficit; tax reduction is
combined with increased spend¬

the

how

they be impressed with

will

appreciate

He is human

and, like all humans,

he likes expressed
Watch

his

better. He

pat on the back.

appreciation.
And

voting record.

Volume

198

Number 6290

The

Commercial and Financial

Chronicle

><639)
when you like what he has
done,
him a personal letter-and

,mand.

Even

so-called

write
say

You will be surprised

so.

-the

pleasant

politeness.;

reaction

unemployment

under

such

letters

Inter-industry

complaining

gets

what

the firing line

lot

kicks,

Another habit which

proved

that

Labor,

proaches
union

the

Congress

members

bers

active

are

pocket-book
in

banking

mem¬

for

the

especially

issues..

everyone

equally active in

were

continuance is
of

seen

The

2.1%

total

year,

still

pears

private

productivity
the average,

force

the

econ-

world

Labor,

position

society

increase

than

all

has

Securities, Inc., 1001 "O" '
Street, members of the New York
Stock

Exchange. He

with

presenting its

and

case

its prob¬

lems, it would be impressive in¬
deed.

productivity is
the

ship of

Despite

worthy efforts by the
Chamber
of
Commerce,

N.A.M.,

A.B.A.

business

leadership efforts

fluence

and

others,
to

combined

put

those of the great unions.
The latter have
big staffs of
economists
and
specialists
who

write,

testify

and

speak

out

and

in-

:qPl||iP

adopt

product

alone shows

IT*
fv!6
growth

which

are

quick
other

advances—for

investment

that

being the main force be¬

quickens

GOULD-

tech¬

new

nology

n„

„

3.0%

given

wide

publicity.

They

demand

growth

BATTERIES,
Manufacturers of

dhe

.earlier

constantly testify before Congres¬

period

has been succeeded by an average

The

American

Federation
general

here

colade

job

education.

give

can

Bureau

good

political

Farm

does

them

of approval

And

ac¬

for their fight

rate

eight
of

(1947-55)

faster

and

characteristics

farmers

themselves

all-out

Administration-guided high
sure

campaign.

The

A.F.B.F.

with

year

its

pres¬

comes

broad

own

every

legisla¬

tive program which they conceive
to be best for
^

they do
to

the

Congress.

and

selling

when

fine

step for¬

posium

economic growth.,

A REGULAR

New York State Bankers

that

this

the

three

symposium

moderators

all

were

York bankers—David

New

Rockefeller,

Gabriel Hauge and
Roy Reierson.
^From a
New
Ycrk

talk

Mr.

State

Bush

Bankers

before

the

Association,

Lake Placid, N. Y.

With Hartzmark Co.
CLEVELAND,
O'Donnell

become

with Hartzmark
Ohio

Building,

New
was

York

formerly

Co., Inc., East

members

Stock

associated

the

Exchange.

with

Fulton,

Reid

Co., Inc.

half-

Federal

is that

Audrey

—

joined

the

staff

Co.,

ductivity

advance

payable
the

decelerating

DIVIDEND
DIVIDEND NOTICES

Jenkins

has

& Weeks

Ohio—Thomas
become

associated

with Hornblower & Weeks, Union

Commerce Building. He

merly

with

Francis

was

for¬

duPont

by Productivity Pace

advance

during

present

Estimates by

covery^.

approximately
—

the

4%; advance

1963,

record

better than -in

recovery

P.O. Box 3100
"

well

for

vestment,
The

favorable

rien.ee

was

factor

increases

overall

and

probably
lease

new

the

well

may

life.

re¬

share has been declared

GNP,

has been the

1963 to stockholders of

good

for expecting

reasons

growth

tion

in growth

and

households,

stimulate

theoretical

reasons

this

cal

result,

well

May has been

Ohio—Ronald
added

of First Columbus

East Gay Street,

CLIMATE

EAT©N

CORPORATION

ELECTRICAL AND ELECTRONIC INSTRUMENTATION

tends

•

for

the

what,
will
wage

prove

expecting

the histori¬

it is to

not

the

tion

and

with

380th

QUARTERLY

421/2 cents per

DIVIDEND

•

Declared Aug. 8,1963

•

Record Date: Aug. 23,1963
D. H.

SINGER

ALEXANDER, Secretary

COMPANY

Thirty Rockefeller Plaza, New York 20, N. Y.

exceeded

tivity since the

the

advance
war.

produc¬
pro-

for

and

Collateral

INDUSTRIAL PRODUCTS

•

HOUSEHOLD APPLIANCES

Trust

Bonds.

Series due

1982 of United Gas Corpo¬
Copies of such earnings state¬

ments will

ers

be mailed upon

request to

of the Corporation's security hold¬
other interested parties,

and

T. H.

Miracle,

Vice President and Treasurer

money

only

consolidated

period from July 1, 1962 to June
1963, such period being the 12month period beginning on the first
day of the month next succeeding the
effective date (June 6, 1962) of the
Registration Statement filed with the
Securities and Exchange Commission
relating to the sale of S40.000,000
principal amount of First Mortgage

any

some¬

rates which have generally

Midwest and Cincinnati Stock Ex¬

Subsidiaries

the

THE

hoped that this

case

gen¬

30,

Payable: Sept. 13,1963

to accelerate

30, 1963

Corporation has made

erally available to its security holders
earnings statements of United Gas Cor¬
poration and of United Gas Corpora¬

If, indeed, productivity advance
should

Period Ended

June

RESEARCH & DEVELOPMENT

are

association.)

changes.

Earnings Statements for Twelve

ration.

Security Holders of

united gas

—

Expands

the staff

Notice to

FOR

"MAKING HAY"

United Gas

Corporation, 52

members

EARNINGS STATEMENT

SUNNY

an ac¬

There

:■

iPraDaite^

<§>

Melvin C. Arnold, Secretary
-

TEXTILE MACHINERY

ahead

which

Suburban
President

of the labor force

demand.

I-

ROBERT H. FITE

other

course,

Month

are,

paid.

rec¬

several times in this century.

(There

■

MOREHEAD

Financial Vice President

Aug. 23, 1963.

Misgivings of Money Wages

COLUMBUS,

GOULD

Company, payable Sept..17,
ord at the close of business

case

quarterly

general acceleration in the growth
of real

that

dividends have been
.•

the. Common Stock of the

If it

presage

year

NOTICE

important

current

consec¬

- •

the close of business Aug. 5,1963.,

in¬

expe-

This is the 18th

1, FLORIDA
',

1963,

shareholders of record

Company, payable August 23,
1963, to shareholders of record at

demand.

productivity

giving

continues, it

July 23,1963,

the

margins, this augurs

further

utive

dividend of 45 cents per
share on the common shares of

productivity advance help to

widen profit

MIAMI
" c.-f.

quarterly dividend: of 320

The Board of Directors has de¬

accelerated rates of innovation

and

DIVlDENb
A

Dividend No. 173

clared

■

.$■

SCHNEIDER

EATON

Insofar

Directors

August 5,1963.

& LIGHT COMPANY

MANUFACTURING COMPANY

other

any

since 1955.

year

stock,

common

by the Board of

FLORIDA POWER

•

last,

^payable August 15,

share,

show

BLS

Suburban

declared

per

re¬

Propane will share in the

Broadway, New York 4, N. Y.

strong rate of productivity

approximately 13,000

owners

dividend

Co.

First Columbus Adds

The

FOR WORK

by a dividend of 33^ per

is, therefore, encouraging to

celeration

CLEVELAND,

NOTICE

SUNNY CLIMATE

'Secretary and Treasurer,t

Encouraged

V-

COMPANY

business

DAGGETT

was

Co.

September 3, 1963.

accelerating.

>.v

earnings of the company

September 27,

ST. PAUL 1, MINNESOTA

Building, members of the

capital stock of

stockholders

pro¬

led, the

has

its

1963.

127th Common
A.

221

Fifty Cents (50^)
on

our

5- f '.1

;V.

•

j AND PLAY

the par value of $50 per

num¬

ANACONDA

studies

July 25, 1963

...

has today declared

regular

by, Kuznets

However,

other variables in

THE

August 30,

YThe Board of Directors of

Directors

Dividend.

Western

notably the prospective accelera¬

Joins Hornbyower

formerly with Amos C. Sudler

higher-than-

NO.

Chairman

Midwest Stock Exchange. He

advance

record

This is

Colo.

PAT.Of F

DIVIDEND

Board

1963 payable Sept.
1963 to stockholders of

16,

With Earl M. Scanlan

LC
MG.I/.&

32VzC per share on Com¬
Stock, was declared by

mon

fi\
AnacomdA

well

of occasions in the past,

ber

covery a

Ohio—Edward

has

with

investment, and thus de-

last,

rates

are

"long-wave"

others.

year
can

last

reason

Board,

July 9,

DIVIDEND NOTICES

economic

the

periods

shown by the

conducted

proud

and

note

1963/ they
in Washington a sym¬

the

Feb.

of.

■*')

The ABA took
ward

countrv

good job

Conference

INC.
complete

industrial

QUARTERLY DIVIDEND

NaNew

the

Joint

less-than-

productivity

the

slower

output and inputs,

growth,

growth in productivity,

plan,

the

almost

Alternating

control

about .2.5%

years.

against the Administration's wheat
defeated

and military
storage batteries
plus motive specialties.
®

sional

committees.

(as

associated

average

postwar

Meeting

line of automotive,

and

the

unemployment rates, and

years). The

higher-than-average. rate of

increase

Industrial
City,

has

annually

Annual

Scanlan

periods

NATIONAL

talk by Dr. John W. Kendrick

Earl

are

York

47th

Douglas

been

welfare, be it foreign aid or civil since 1947 due largely to a more
rights or the farm bill, be it mone¬ .rapid growth. of capital per
tary policy, fiscal policy or what worker since World War II than
Y
have you, the great unions have before.
'
Y
their views ready ,and these views

the

•

Kendnck
of

tional

before

the

have

dozen

year,

but':

*From
at

DENVER,

accelerated
.

accel¬

NOTICES

un-

and

1525 Fairfield Avenue

WORLD-WIDE MANUFACTURE, SALES & SERVICE

Co.-

Merrill i.

with

industry.

automation

productivity advance in the past

vice-versa

from

testimony

average

fear

technological and

past

What

well

Economic Committee in DecembeiT 1961, periods of accelerated

labor

health, education and ,1919-62,

the

man-hour

per

to
of

the

DIVIDEND

progress.

productivity advance. As I showed

capital.

Real

2.6%

nearly every national issue.
Be

uct

nothing

erated rates
....

'Bj

real

in¬

and public
feeble, compared to

Bpcll|RB

national prod-

the

Congressional

opinion,

has

relation-

formerly

Lynch, Pierce, Fenner & Beane.

employ¬

average.-

hind .economic

generally,

was

Storz-Wachob-Bender

and

•

Kuethe

joined 4he staff of First Ne-.

benefit from the progres¬

companies

the

improve.
and

technological

harrow

and

Total

omy.

the

competitive

so-called

productivity advance that

tended

sive

ap-

our

argue

industries with greater-than-

the gap with wage-rate increases,
inflation would further slow down

progressive employer

decreasing structural unemployment.

long-term trend rate of in- ductivity advance could

crease

the

also

the country has to fear is the

presaging acceleration in real GNP growth and,

little importance,

threat

ment

over-all de-

its

fronts.

workers

programs,

investment and

against

have

mand, to be instrumental in giving the current recovery a new lease
on life, and to cure technological unemployment.
Moreover, its

ap¬

and

broad

'4,

ap¬

narrow

Furthermore, lpost union
union

LINCOLN, Neb.—Fred S.

advance

average

Strong rate of productivity advance during present recovery is said
to augur well for further increases in

technological unemployment. It is

George Washington University, Washington, D.C.

V-

contrast,

be im¬

can

businessmen

proach the Congress
front.

comparisons

productivity

the

does, tell him

from time to time.

By John W. Kendrick,* Professor of Economics and Research
Director of Wealth and
Inventory Planning Study,

He's out there

you

de-

braska

commendation.

high

mand.

about his vote than the letters of

and

structural Now With First
Neb. Sees.
to -.melt

tends

influence

■

Unfortunately, the Congressman
gets

the

Shreveport, Louisiana
August 9, 1963

The

Chronicle

Commercial and Financial

Thursday, August 15, 1963

(640)

The Market... And You

Duff Mun. Mgr.

Connecticut Brevities

Kistler

For Powell,

BY WALLACE

STREETE

C.—Erskine

Dynamic's EJectric Boat
division was awarded a $127 milGenera!

- powered
Construction

nuclear

three

submarines.

place at
shipyard

take

will

Electric Boat's Groton

to ex¬
nation's
space
nation's space

Aircraft continued

United

its role
its
role in
in the
the

pand

booster.

Technology divi¬
sion, the booster is the largest of
its kind and is expected to play a
United

role in future space
activities. Space-related contracts
were received by two other UAC
significant

Hamilton

and

state,

the largest utility in the
completed acquisition of
Mystic Power
Company,

the

Formerly
tormeriy the
tne property
piupeYy of
ui New
iNew

Standard

~Wrd~PQ ftfllfl
V^U. l.> UUC/io kJC/lCL

lankee

Connecticut

Atomic
granted

tentative approval by the AEC
construct

500,000

J Ja_J

utilities,

England

comple ion

for

SJtifirnf
million. The design

notes

■»

1.1-

re-

growth situation. For one

operations will
But

weigh on earnings this year.

the new

Maine and Georgia plants out of
the way after next year, the picture. couId .c,ha"ge ,vas«y and
justify a better market regard.

time

any

special

industry

real threat,
and will continue to overhang the
market for another two weeks.
still

was

uncertainty overhangBEVERLY HILLS, Calif.
Kleiner will acquire a member- ing the market was the fate of
Burt

re-

Defense Issues Neglected

important new

any

dislocations

generally

finance

declining

talk of indus¬

mostly because the threat
rail strike and the consequent

serious

will make it difficult to compare

the results of previous years.

being made.

little

was

making

trials

Be NYSE Member

certain

Under

1981.

Aug.

100%

declining

There

the American Stock

Kleiner, Bell To

prices commencing at
and

no progress was

highs,

Another

Defense issues have not been
given much play recently even
where, as in the case of Northrop,
the company has made a rather
complete shift from a one product
aircraft company to one deeply
committed to Space Age work.

The

-lately has been

company

Stock Ex- tax cut plans. This will be a situ- available at around 10 times earn22, and Kleiner, ation with the market for even ings, a distinctly subnormal ratio

change as of Aug.

Net

company

uged

fpr

will

the

used

to increase

maintain

capital. The addi-

working

its

tiQnal

foot

from the sale

proceeds

notes

the

since some Washington in today's markets, and offering a
reports are that voting on any yield that approaches 5% for an
committee recommendations above-average
return,
With a range of only five points
might not take place until after so far this year, Northrop would

Co., 315 South Beverly
Drive, will become a New York
Stock Exchange member firm,
pther partners in the firm, which

longer

Bell &

1981.

...

regular

associate

and

1971

102.25% initially to 100% on Aug.

Inc.,

80,000 ..square

demPtion prices declining from ship in the New York

Ijoil, Inc., Danbury, will

construct

special

after Au

redeemable

atde

offices in Windsor.

Republic

except members of
conditions. Exchange.

receivables, the notes are redeem-

Engineering,

Combustion
With general

certain

an(J

out

be' carried

will

under

York and Midwest the rail negotiators insisting that

Exchanges

Stock

1971,

Aug.

eondltions

the

plant

has
stand

was

redeemable

not

are

prior

102.50%

pressurized water reactor
Vessel to be incorporated in the

commercial and investment bank-

bers of the New

demption

and fabrication

™

within easy

show of.real strength a"d on oc"
canon it was able to out-perform
the induf"al °"e as/°me hlnts
arose that th.e railsandtfie unions
were ^oing to get together on the

nnn nnn

n0'es> due Aug. 1 1985, at par
and acciued interes .

are

schedu ed

announced

and

generating plant at Had
dam Neck.
The proposed plant,
which wili serve the requirements
huclear

thing, two start-up

reach of its year's high on any with the expenses of

original

of an under-

the PubIlc offering of

The

*the

out

which topped

out late in June, was

organizers and is a past President
Qf ^
Raleigh„Durham Bond
Club. He is widely acquainted in

flight

Power Company has been

one

to go before it will

way

Peak

interplanetary

future

was

The rail average,

Durham.

Corp.,

Near

inf rirrlps in the two Carolina^
For this year the prospect is for a
profit to be
$50,000,000 mg Virginia
circles in the two Carolinas featherbedding
featherbeddins issue without a better
hpttpr per-share
Jr.shar(tnrofit
he re'
nationwide little
strikeconcrete
late thistomonth,
ported,
but
a
change
in
the
Commercial Cred.t Co. 4V2% Powell, Kistler
& Co. are mem- -pbere
go on, method of depreciating its assets

environmental control systems
for

<=>

and

support

life

the

ma„agers

•

Kistler

cerned, Great Northern Paper
a

Rails

Vice-President of

was

Securities

Mr^Duff

yr«. aosin l j a

in 1960 as a Gen¬

Partner with Powell,

Co., he

First

and Kid-

Corp

First Boston

The

to in-

chosen

was

eral
&

for a
and Hamil-

landing on the moon,

vestigate

Commercial Credit

but quietly.

For thirteen years prior

to his association

-i • ,

•

edging ahead persistently

years,

Ass't Vice-President and Sales

Manager.

slated

module

excursion

(

cells for the lunar

fuel

develop

Standard.
selected to

tribution system.

Pratt and Whitney was

needed

Power

Light

the

office,
charge of
offire is now in
in rharjm

Kinston
Kinstnn

Company,

Air-

divisions, Pratt and Whitney

ton

efforts
and

the Powell, Kistler and Company

test- Power

successful

recent

firing of

craft

The stock
strengthmarket
that showed
up in carried on the book at around $3
once August an acre which admittedly is a low
the Municipal Securities Depart- dawned continued to
carry the price for land. It means that the
meRj. 0f ^hat firm, headquartered averages higher this week but not stated value on the books of the
in the Fayetteville office, 110 Old without some random profit-tak- company
is some $76 a share,
Street
'
in£ showing up on occasion.
more than $30 above the recent
Mr.
Duff began his financial
So far the recovery highs of market price. But with a more
a^r in 1933 as an examiner with !ate
May weren't under any realistic appraisal of its land
NQrth Carolina Banldng D
serious challenge as far as the holdings, the value per share
t In 193g he ioine° ^
industrial average was concerned, could be set anywhere from a
decessor Brm 0£ Carolina Se- The utility section, however, was' moderately higher figure to alcuritjgS Corp Raleigh> and served able to post its best standing in most
the
stated book
As double
far
operations
arevalue.
con¬

^ent

England Electric System, Mystic
will add approximately
its huge solid-fuel rocket 9,000
customers to Connecticut
Developed by the Com- Light and Power Company's dis-

Was ,the

P.any's

particular significance

efforts.

^mi

of the Connecticut

submarines

will

build compa y
Polaris and production

the Navy to

lion contract by

FAYETTEVILLE^ N.

to Wilton

Natick, Massachusetts

ita]

w
the

purchase .of

is a member of the Pacific Coast Labor Day.
stock Exchange, are Lionel Bell, -V
"/*'

re-

Herbert Hill, Ralph J. Shapiro and

ited partners.

» w

Valuation Uncertainties

, ,

have to"

fee considered

shares;, sold

item. jC"The

neglected

higher in

than"'

ceivables in the ordinary course Boris Loeb> general partners; ahd
More1 and more, the daily mar- each of the last four years
ceivables
in the ordinary course Maurice J. Hindin, Rex A. McKit- ket
comments
were
stressing the recent market level.
speed foil mills. Tc.be bmlat an :■
Commercia].s
financlng ac.
rick and Robert H. Powsner, lim- sound stocks of value, rather than
Aircraft production is down to
approximate cost of $4,000,000, the avjtl
or for :such
purposes as
the possibilities of market action, a qUarter of sales, the two prinnew
facility will be of modern

structure to houfee
,

line'.of high-

...

businegses

design
i a cent
jacent

will

and
to
10

the
tne

comnanv's
company
s

nresent
present

foil mills in Danbury.
Connecticut
pany,

Bank

state's

the

primarily in specialized forms of

formally dedi-

fjnancing

new
20-storyheadquarters in Hartford s Constitution

ated

SPlaza

its

redevelopment,

area.

assets of $532 million at

hag

insurance

and

gevferal

manufacturing

....

sidiaries.

ais0

sub_

...

Harry Paul Opens

major

Union Bank & Trust Company of

from offices at 98

ito Kncinpao nnri nnpratinu ncjsnts »
$116 million deal,

City,, to FMC Corp., a

York

Broadway,, New

of the New York

Stock

IVTllTI

.nillQ

asset

Bank's 33rd

branch

Cornoration

^'inS^T

the

Perkin-Elmer
Norwalk

—

facilities

into those of the

The

2080

Materials

Solid

the

subsidiary

State

from

r\rc

Echo

INew York Ornce
ORVILLE, Calif.

Myers

—

York & Co.,

Street.

Joseph

Edelstein is resident manager.

East

markets in

Club,

Country

Barden Corporation

★

Connecticut Light & Power

te v 5

★

Southern New England Telephone

★

Stanley Works
other Connecticut

209 Church Street
New York: REctor

•

NEW YORK

STOCK

•

Co.

EXCHANGE!

New Haven 7, Conn.

2-9377

■Hill

Securities

Chas. W. Scranton
MF MBERS

loins C

W
•

p a*

Mn81K
f

YV7..1

22nd

million, for an
than $76 a

slightly above
the shares

Lep"w
—

tbe

negi€Ct
cou]d

stem

And part of the

case

from

of Northrop

the abrupt can-

cexiation of its largest
trac^ tbjs year, a

.....
has

single con-

missile guidance

system that contributed a fourth
saies Nevertheless, students of
the

expect the revital-

company

elements of uncertmnty in ized firm to make up enough of
-

loc

•

to^turn In a.- profit this

rhl J^ comparable to that reported
develope:d a 1Dlan to that <ei}d-^ last year.
corporation
has a tax ioss that has If the repeated,
$2 16 per it
share
profit of
figured out to around $40
offers a fat
19(;3

million but some of it can be

Leonard
George L.

W ltn

Gortmaker

George

11111

Ueorge ratten

eoverage f0r the present dividend
usad only to offset capital gains. of $] And wlth the cancelled
The statisticians figure

that if the

contract>s effects missing, it

Patten

Investment

American Bank Building.

/ what it leaves on the surface

selling around its liquivalue, with no incentive to

gives

do anything dramatic in the way
of price action. Hence there
were
some sell recommendations

been getting

sprinkled through the

stock mar-

Olson
aid C.

Sixth

The

question of basic worth is a

H. bit hard to figure in bther situahas joined the staff of Don- tions,
particularly one such as
Sloan & Co., 520 Southwest Great Northern Paper where its
Avenue.
million-acre
land holdings are

PORTLAND,

Ore. —George

ter

when such yields

definitely scarce deserves betattention than it seems to have

are

ket comment.

Donald Sloan Adds

turn, at a time

an issue
dating

Ore.—R obert L.
is now affiliated with

Hartford: JAckson 7,-2669

and

of better

price

r, • • • i

Even the Space Age work

its" share of risks.

company.

been

PORTLAND,

Teletype: 203 772-0938

April

ly with Francis I. du Pont & Co.

★

neither threat-

warfare,

G°ler'„Jr' has become associated loss for tax purposes can be fully North
a good chance to turn in
Z'th
CD
Le°nard f C0" Utilized' " WOUld add ar0.und $2 a far better showing in 1964.
Masonic Building. He was former- more per share to the asset value. Meanwhile the above-average re¬

firm trading

investment

recently.

through 24th, 1964.

PORTLAND, Maine

and

market

^th
Main^Street
Dealers
wil!athold
their
securities
business.to engage in Municipal
biennial Spring
party
the Chase
a securi^es business
Park Plaza Hotel and the Glen ?
^

recently constructed ElectroOptical Division plant at Wilton.
move

Dealers Party

its. Solid State Mate-

rials subsidiary

value

wood haS PPened offices at 1300 ST. LOUIS, Mo.—The St. Louis

left in AVC Corp. is

study lists its total cash

TULSA, .Okla.—Gerald J. Pack-

office.

ATT^

share. This figure is
the

Packwood Opens Office

securities at $363

kJU. XJVJUIO lvi.U.11.

New London. Previously the old-

What
One

ftp

S'tret.

closed-end

is conducting a securities business

Argyie

production

Exchange, effective Aug. 27. ;

ROCHESTER, N. Y.—Harry Paul

still

types

YOne item that had its own un- jjmited

nortnop in MnnHnnia Xr

members

mid-year,

cjpax

market until the bejng a training aircraft and one
uncertainties are resolved. for support of gr0und forces in

^or a

,,r,

Bank

expectation was

... the
....
certainties was the forrrier ^n][eTrr1/; ened with obsolescence•, in
can Viscose> since renamed AVC nealv future. In: fact, plane der¬
G. partner
Donald in
Gallagher'will
become. Corp. Avisco early .this month sold liveries are expected to; spurt next"";
MacQuoid & Coady, its- business and operating assets year.
120

With

recently ac¬
quired an additional $8 million in
assets following its merger with
^Connecticut

since the general

spedalized forms®of Admit
J--LVAAAAAU Partner
J. cu. uiivaL

largest

second

Commercial bank

Com-

Trust

t
I
'
ltia11^'
the Proceeds may be used MnpOnmH TPfV
^
reduce short-term loans
1V±CIA-Aq&UV1U
to leauce snort term loans.
J? Baltimore,
.
jA
j.

ad-

located

recently.

In a Mundane Area
a far more mundane field is
that of clothing patterns which

specialty of Simplicity Pattern throughout its life.
The business has been thriving
enough- so that Simplicity can
point to dividend increases in
has been the

198

Number 6290

The

Commercial and Financial Chronicle

;
.
.

each

the

barring
steadily
To

past

six

bitter

one

■'

year,

company,

the

fact

that

postwar youngsters

are

now

get¬

STOCKS

ting to the sewing age is one solid
prop toward a bright future show¬

ing in both sales and profits.

Its

long-time missionary work in

en¬

also provided a built-in habit that

sales

ings proj ections this
comfortable

i^ear,

year

increase

showing

'
r

|j;

age-old field is

the
•

world's

Ferro

largest

Corp.,

producer

57-48

$1.20

Fritfpr porcelain^enamel and ceraihic; glazes:- New* high^v;an sales

J- Ferro which
the

importantly

the

over

same

period

12-times

it is seldom

cide

necessarily

with

They

those

only eight

time coin¬

any

those

National

Bank

approval

;

its

BES

Corporation.
-

l-a r.y

a -,

Brothers
IsT

ident;

JE.x

<.*.

subject'to

of the

falling in their 40's.

anxious to provide cits own capital to promote
' '
C

-retary

,: a n

NATIONAL BANK,
Xi

Years Ended

;

■.«"Nortnan-V. Conway

-(Millions)-

Dec. 31

•

Presi- /

Ressler, Sec-

CAROLINA

„

•:;f*> A

Assets

1962—..

$325

1961--A

310

I960—.

287

1959—

274

251

259
238

1958—

Treasurer;

Sherman W.* Fowler,
Vice-President and manager
of

1957—

Deposits

$294

-(Per Capital Share)-

Net

Oper.

Paid

«■'

$2.98

20 -' %

■

$1.20

-2.94

20.34

2.78

19.30

2.52

correspondent of Reynolds &

•

240

15 ^

18.20

1.84

1.36

222

17.49

1.96

1.14%

1.14

ernment vBbnd.

department,

♦Excludes

memberships In
Stock

the

Exchange and

New

other

never,

firm maintains-a staff of
about 30

this

registered

custody.

Alexandria, Va.

Trend

and

sales

manager

for

Nebraska

•
.

1940

Harry B. Graefe, formerly Vice-f
and Secretary of First
•of Iowa, will continue with the-

underwriting

services

and

manager

the

formerly

will

remove

general

sales

First

was

the

Sept. 3,

transac¬

1^63. The

will mark another step in the

Co.

expansion

the firm

extends

branch

sentatives
Iowa

active

and
as

1951,

main¬

and

repre¬

offices
17

communities

Nebraska.

has

been

utors of Iowa and general market

municipal
bonds and

—Per

So. Carolina

brokerage

writing

facilities

Washington, D. C.

na¬

and

under¬

the

greater

bonds,

stocks,

over

corporation
the counter

securities; and mutual funds.

Illinois

to this time,

instrument' to

permitted

leave

their

The First National Bank of
Chi¬

fer to McCormick Place
where
will appear, as

part

exhibits

Clyde C. Walton, official Illinois
State

of A.

Historian, is custodian

ing the

appearance

ment in

Chicago.

tion

May, Reynolds &
office

'during- the- Century
of
Negro Progress Exposition open¬
ing Friday, Aug.*16^ •'
^
■
>

ceive

area.

Co.

ac¬

Kidder

the

this

dur¬

docu¬

On hand to

re¬

Proclamation, in addi¬

to Mr. Walton, was Herbert
Prochnow, President of The

First National Bank of

Chicago. '

$270

Capita-

U.S.

S.C. of U.S.

51.6
59.1

1954_—

2,414,000,000

1,087

1,770

61.4

2,604,000,000

1,141

1,866

61.1

2,711,000,000

1,182

1,975

59.8

2,818,000,000

1,210

2,048

59.1

2,931,000,000

1,249

2,064

60.5

3,142,000,000

1,327

2,163

61.7

3,297,000,000

1,378

2,215

62.2

3,450,000,000

1,433

2,263

63.3

It is expected that
employees of

Bradford

Opens Branch

Rouse, Brewer, Becker & Bryant BRISTOL, Va.—J. C. Bradford &
will remain with that firm's offices Co., 510 Cumberland Street. G. C.

38.4

$703

;

595

1961—

and

become part of the Reynolds

McCall, Jr., is resident

Bank Limited
Primary Markets In

BANK

Head Office

and

U BISHOPSGATE, LONDON, E.C1

Telegraphic Address
MINERVA

Yarnall, Biddle Branch
POTTSVILLE, Pa.—Yarnall, Biddie & Co., members of the New
York

Stock

Exchange

leading

exchanges,

nounced

the

under

and

have

opening of

Schuylkill

Trust

the management

other

Howells.

Building
of Earl J.

Howells

has

STOCKS

been

LONDON

Telex Nos. 22368-9

active in the investment securities
business in the Pottsville
the

past

years

joining Yarnall,

an¬

office

Mr.

manager.

National and Grindlays

INSURANCE

underwriter and distrib¬

cago, which is

pro¬

its

Corporation, which

established

tained

•

1,491

announced.
First of Iowa

•

881

1960

Iowa will be retained it has been

307

1958

> "

584,000,000

1956—

Phoenix, Arizona.

personnel

state

shown

Consummation

Detroit

1,869,000,000

1957—

President,

■

$470,000,000

1959—

All

the

his¬

document

dis¬

Washington, D. C.
"A,'A
.•' *

area.

Carolina

1950— IC

1955—

market municipal department.
Roy
W. Leriche,

So. Carolina Total

_i"

1929

President

r.V'

Iowa, with headquar¬

ters in Dubuque.

firm

valuable

Century

This

Co.
1

and Eastern

20th

13.

presently celebrat-^
ing its 100th anniversary, has
ap-(
tributing Corporate and municipal: propriately enough been asked tcr
securities,'with special emphasis safeguard this historical, treasure;
on
making primary markets for in their vaults pending its trans-;
Its

quired the 24 Florida offices and

Estimated Personal Income in South

August

'the state of New
York, which has

leading exchanges,; Currently,, the
representatives,
with
extending into Arlington

the

loaned

tionwide

reserves.

York

and

1.14

-and"

Dr. Dale D. Welch, Vice-President

New

torical

Last

Iowa-Municipal and U. S. Gov¬

by President Lincoln, Jan. 1,
arrived
in
Chicago from

Becker

Rouse, Brewer,
Bryant
organization

the

Proclamation in Chicago

Limited,

include

Original Emancipation

Co, since 1958, the

Reynolds

1863,

gram

'18

262-

country.

sued

tion is slated for

1.14

the

offices.

move

than 50 offices located
across

CHICAGO, 111. —The original
Emancipation Proclamation as is¬

and

Dividends

Earnyiigs

$22

272f
-

Book

Value

♦Capital

Broadway,

tueir nationwide
system of branch

offices
-

of the

firm, of Rouse,

securities of the

-A

CHARLESTON

120

& Bryant, Incor¬
porated, Washington Building, into

York

area

economic

City, will have approxi¬

Brewer, Becker

holds

The

•

New York

announced

proposed consolidation

depos¬

of the bank is. among the best in the

men

organization. Following the acquisition, Reynolds & Co.,-with
headquarters

of the New York

Exchange, have

Washington, D. C.

Al¬

earnings.

Co., members

been

Also, the past policy of ktock dividends could

minimal effect

V_;U.

Merge With

Stock

are

SOUTH

tV K. *

e n

the

growth;.-'

Pres^^ |
Douglas 3

WASHINGTON, p. C—Reynolds

stockholders'

majority of the
acquired through 'mergers-since.,1957. Obviously the State,-with competition from Georgia and North Caro¬

cutiy.e.

mately 600 account executives in

branch application

new

Rrowo-P Pa

DlCWt/l

Reynolds & Co. A

category is 13.5; r
fiirther increases in the rate permitted under Regu-,.

-any

most

lina,;is

;.Conway, *J

v;y ice
■.

ornuin^i;

which

were

are-

currently 977,084 shares of stock outstanding.; Although the bulk of the stock is held locally the concentration is
not as great in any family or
group as it was some years ago. The

Conway,

-r'

the

with

of the Municipality of San
Juan, Capital of
Puerto. Rico. .Shown, left to
right are:' Francis Bowen, Senior VicePresident of the Government
Development Bank for Puerto Rico,
fiscal agent for San
Juan; Mr. Smeal; Dona Felisa, and Miss
Catalina Palerm,
Secretary of San Juan. -

T?fYllQP

Three acquisitions

In addition, there is

current, management

J"1

will, be .-avsiib-r

;s"i^d

Gautier, Mayoress of San Juan, accepts
Smeal, Vice-President of Morgan
Guaranty
Trust Company, which was
awarded on July 24, $4,000,000
public

IlUUOCj

planned due to the high premiums

Another favorable aspect is the ratio of time
total j Currently the percent in this

There

officers of the
iirm % whieh

well.

lation Q will have

has acquired the investment busi¬

(Spartanburg)

6.3% in 1957.

therefore;

MOINES, Iowa — Conway
Brothers, Inc., 904 Walnut Street,

Newly elected

Rincon

significant

be continued;

-v^v

of First of Iowa

Felisa

check from Frank P.

improvement bonds

though the dividend is low, capital is somewhat low relative to
deposits. The present policy of retention of
earnings implies no
dilution through the sale of stock.
Long-term dividend treatment
should be favorable as capital now
approximates 8% of deposits
versus

First of Iowa

ness

rapidly,

following figures show, earnings increases have
extremely favorable at close to 10% per annum since 1957.

of the

Dona

lower per;'•

As the

only.]

7;.'

pending.

Conway Absorbs A
-

in the past
>six years have brought the offices of the
South Carolina National
up to 49.
There are two mergers now subject to
approval by the
regulatory bodies and a new proposed merger of the Piedmont

the "Chronicle"

presented

are

author

of personal in-

* appreciably

grown

demanded to acquire a bank.

now

[The views expressed in this article
not

state's growth is* the trend

being considered

mergers are

points.

measures

Although' Souths Carolina: has

Although both of these banks have

•

feature and has held

are

deposits, is appreci-

Marketwise,

this year in a range of

largest institutions. The Citizens
and Southern National Bank has
$150 million of deposits and the A
First National Bank of South Carolina
has deposits of $100 million.

return well

selling at 20

ably larger than the next two

the

reported this year, which is a low

multiple, and offers

are

The South Carolina National is the
largest bank in the State
with approximately 30% of the total
deposits in the banking sys-A:
tem:^ The Bankv with almost
$300 million in

anticipated per-share profit to be

into the 3% bracket.

historically

as a:
whole,^ the; trend is favorable^ v*
and-thein.percentage of'them's', average is gaining.' •

The company's shares have been
around

17.5

prices has produced

capita* iheomeitfran^^^

of last year when for the full pe¬
riod a record, high was reached.. : r

available at

P/E Ratio

$3.20

p^ceritage'of total employ¬
manufacturing is 32 as compared to 25.9 for the
country
as a whole;
Although textiles have been predominant^: manufac.- -:i
turing related to agriculture and: also the
development of Atomic:
Energy facilities have been important to the State. One of the
greatest

fbf^i/he^irst half of*

year, was' ableto'increase - sales

2.25%

Southwest

the West Coast

i come.

ff -fife

BANK

Est. 1963 Earns.

ment in

Another company doing well in
:;

Yield

Complete Puerto Rico Bond Sale

occur

considered likely for the seventh

;

Dividend

times earnings. It
appears that the best opportunities in bank
stock investment will
in the smaller banks in
rapidly growing areas. The State of
South Carolina is
growing rapidly with a general shift from agriculture to well-diversified
economy.
Both manufacturing, and
commerce are howhf 'significancei ,The

last

Frit Concern Prospers

1963 Range

and

another dividend increase is

year: 1

Bank Stocks

high level of prices by most measures. New York
City banks
selling at almost 18 times earnings. Growth banks in the

earn¬

over

—

CAROLINA NATIONAL

Price

The recent rise in bank stock

long time. With

trending higher, and

(641)

This Week

SOUTHERN

couraging sewing in schools, with
Simplicity patterns obviously, has
usually lasts for

•

BANK AND INSURANCE

increasing sales trend.

the

and,

years

strike

•

Volume

associated

and

area

prior

for

Bidjile & Co. was

with Walston

Co. in

Bankers

Laird, Bissell & Meeds
Members New York Stock

Exchange

Members

Exchange

120

American

BROADWAY, NEW YORK 5, N. Y.
Telephone:

their Pottsville and Allentown of¬

fices.

Stock

Bell

BArclay

Teletype 212

Specialists

7-3oOO

571-1170

Bank

Stocks

ADEN

KENYA

•

the Government in
•

UGANDA

•

ZANZIBAR

Branches in
INDIA

•

PAKISTAN

ADEN

•

CEYLON

•

BURMA

• SOMALIA • EAST AFRICA
AND THE RHODESIAS

The Commercial and Financial Chronicle

(642)

How Leading

Authorities View Outlook for the Railroad Industry
despite

Continued from page 1

the operating trainmen.
The railroads and the
brotherhoods are continuing negotiations on the work-

in the event the

proposed rules become effective.

Class

railroads

Commerce

is now pending

The

1963

same

President,

months in

For

rail

making strong efforts to accelerate growth.

types of traffic
ous

;

nant among

preliminary 125.1 in June 1963., Gross National Prod- ,
uct for the second quarter of 1963 was $579 billion at.

the measures adopted

the unit-train volume rates

are

Other

coal to compete

placed in service
of traffic

motives
of

•

are

crease

the tenth consecutive quarterly inin GNP since the recession of the first quarter of

1961.

There are predictions that the

quarter

first

$7 billion over the

annual rate, and the advance of

was

tinue in the coming quarters of this

These

year. Concurrent

The

conditions.

nomic

in ton-miles
attributable

apparent from the foregoing that the railroads

improvements in general eco¬
have ben hauling a

have not shared fully in

railroads

decreasing portion of the nation's freight traffic since
World War II; in 1962 ton-miles handled by the roads
were

about 43% of the total whereas it had been more

than 60% prior to the war and greater

during it.

Traffic

and con¬
tract carriers, to legitimate private carriers, and to un¬
authorized operations. Shifts in markets because of de¬
has been lost to competing modes of common

in centers of production
for various reasons, in the forms in which products are
shipped, such as the concentrates of fruits, and in
demand for certain commodities, such as oil or electric
centralization

power

population,

for coal, as well as in shipper preference for the

services of competitive modes, have influenced the
ume of rail traffic.
Considerable confusion in respect to the current

vol¬

concerning

industry. It

can

"prosperous"

the

state

be sai~d that the railroads as an industry

solvent, but some are in a weak position, particu¬
larly in the eastern district. Continued upward move¬
of

the

economy

may

enable individual roads to

Returns

are

not yet

available from all Class I line-

haul railroads, for their operations during the first half
of

practically all of the major lines, indicates considerable
over

the

longer

corresponding

period

were

rim future of the

will take

The

they

to take

given the

were

legislation permitting these
is not

the

lost

fruits

research

our

to the rails.
1962

rail

1962

ending it

en¬

hoped

see

years

and

ago,

railroad

had

Boston

prevailed

participate

/7 7

progressing

Parity

they should in

Equipment
more

test.

Maine

attorneys,
of

The

issue

battle

the

whether

was

with

concert

Boston, waged

so-called

Port

and

New

Boston

interests has at least created

Boston.

Admittedly,

pur¬

quences

than $7.8

fate

there

imponderables

are

defy accurate prediction.
legislation

tory restrictions

now

■

whose

Among these

Sons

has

look to the future with

UNION PACIFIC RAILROAD

2727

complimentary

our

copy

of this timely Study prepared

Railroad Securities Department, simply return

North

ratemaking; conclusive steps by the

end

roads if decisions

are

reached in the major Eastern rail-

resident

Phoenix

Central

head

For

moved

the

office,

v en u

company's

Vilas & Hickey

7:-.'7;Vv7^

ex¬

panded operations in the South-

New

itork

Stock

has

James C.

this advertisement.

been

announced

Borst, resident

V7'-'\

MEMBERS

Exchange
Midwest

west,

Stock

•

American Stock Exchange

Exchange

7:'VV, :;V ■ V V.;:

,,y7' ;■v v-77

manager

in Phoenix.
The

new

Brokers in

resident partner is C.

Name.

Von

Tel

Address

(iPlease Print)

Serig who

comes

to Phoenix

from the Edwards' home office in
St. Louis,

INDUSTRIAL

RAILROAD

PUBLIC UTILITY

Mo.

SECURITIES

Mr. Von Serig was formerly in

W. E. HUTTON
Members New York Stock Exchange

Street, New York 5

Telephone: REctor 2-3300
24

offices in the United States and abroad

office

operations for A. G. Edwards. The
firm

14 Wall

of national branch

charge

recently merged with Parker,

Ford &

Co. and acquired 11

offices in Texas and

addition
which

was

the

new

Oklahoma, in

Phoenix

opened in 1959.

office

the

before Congress to ease regula¬

Serig Transfers

partner

conse¬
are

feabfrerbedding in the railroad in¬
dustry; and the ultimate impact on New England rail¬

Government

optimism, not only for the industry, but also for

To Phoenix

:':VVv'

at¬

long and ul¬

PHOENIX, Ariz.—A. G. Edwards

°f

The

opportunities for atracting more traffic to the Port

despite the uncertainties of the legislative
we

court

they would be significant,

and

case.

under

increase would extend to the Boston

of the Boston rail and port

Expenditures for this

million, compared with $7.2 million in 1962.

picture, on the Rio Grande,

Inter¬

should be allowed to publish the same rates on
import and export traffic, to and from the midwest, as
are in effect in
Baltimore and Philadelphia. A Upited
States Supreme Court decision upholding the position

7 7

•;

far in 1963 amount to

York

growing

relatively large improvement

stands

timately successful legal

ar¬

equipment.

traffic

torneys for the Port

<*. B. Aydelott

highest amount spent since 1954—exceeded only

chases scheduled

Study

equitable
adjustment is forthcoming, savings

tax

and Maine and

purpose will be in the neighborhood of $13 million, the

much

progress towards

the

Two

continental

expectation of improved net earnings this

In summary,

have

year

opportunities for further reductions in the Boston

benefits of such

closer correlation of rail traffic with

program for road and

second

no sqnse of doom on the B&M.
operating ratio last year was 77.36, the

tirely.

that the erosion

V: 7;-:

economy.

year, we are

D. A. Benson

Eastern railroads generally stand to benefit if

Statistics for the

Therefore,

the

state Commerce Commission ruling that these lines are
entitled to an increase in freight rate divisions on trans¬

the

over

which, has

the railroads will

With

$3,600,000

to the railroad would be substhhtial.

pro¬

during the past decade has been
rested.

railroad's

basis

return tonnage,

indicate

traffic

some

total deficit from all opera¬

—r

competitors

our

operations that

passenger

and Maine's deficit and

encouraged, however,

traffic, but to

years,
year

be,

The railroad is

quent developments have made it possible for the Boston
and Maine to qualify for 'tax relief on a more

designed not only to develop

grams,
new

rosy.

can

high.

Hence,

belonging to

cars

bill was passed, but its conditions were such as to
make it impossible for the railroads to benefit.
Subse¬

processes

forthcoming, then the picture

freight for

originates.

great. If

is not

cars

New

example,

legislation in Massachusetts that would afford tax relief.

opportunity
are

for

Developments in late 1962 and early this

advantage of automation and

competitive rate making

are

Maine

disadvantage because of

created

to the rails

accrue

B&M,
it

and

England lines.

reform" in the transportation industry, it would be
mjuch
more sirhple to forecast the
earnings picture. The bene¬
fits which would

car

gainsaid
continue

fifteenth best performance among the
major Class I rail¬
roads in the country and the best
among the five New

proposals pending before it for regulatory

easy

Nevertheless, there is

concern.

AYDELOTT

tions of $2,890,000.

.possible to predict the action which Congress

Von
A Current

against

President, Denver & Rio Grande Western Railroad Co.
If it

1963, but net income for 62 of them, which includes

improvement

the

by the $16 million expended in 1962.

improve their financial condition.
-

the

are

ment

for

may

this

serving

national industrial production may now be effected and

finan¬

cial condition of the railroads has been created by public

statements

significance

advance will con¬

nue ton-miles increased 3.7%. The increase
as opposed to the decrease in carloadings is
to heavier loadings or. longer hauls.

aggressive management

The

last year came to

OthCf recent' indications

and

industry than problems of current

and GNP;
railroad carloadings decreased 1.2% during the first 26
weeks of 1963 compared with 1962, but estimated reve¬

greater

and

of the railroads

some

area.

Railroad, at least, there is

Boston

railroads

one

deficit

with the increases in the production index

resourceful

the

other

every

also

powerful loco¬

being ordered to replace the first generation

diesei-electrics.

confront

other lines

with

problems

its rental costs' for

roads to attract certain kinds

on some

to achieve economies.

Maine

course,

terminates three

with

Special equipment has been

proposals.

formidable

England.

existing and potential coal pipelines; and mine-mouth
electrification-

It: cannot,

and

being considered

being energetically sought by Vari¬

are

that

including selective rate reductions. Predomi¬

means,

•

the term "deficit-ridden" has be¬

years now,

cliche.

Loadings of piggyback

industry.

Railroad

Maine

commonplace in allusions to

growing-impatience

industry which give substance to optimism

in the growing econ¬

BENSON

and

operating in the New England

operational sector

serve.

Boston

On the Boston and
number of aspects of the

are a

the future of the

are

anticipated level of business activity, if?
realized, should enable the rail lines to maintain their ,
i present position and perhaps improve it barring work
stoppages, disturbances of nature, or other unpredict¬
able developments. The Federal Reserve Board's index
of industrial production rose from 118.4 in June 1962 to

some

gain of 21% in

DANIEL A.

net in¬

January-June

traffic have continued to increase, and individual roads

The generally

the

for

advantages for

tax liability.
•

for

income; and 23 western roads increased net income

Tax legislation

financial

million

deficit of 12 million for the

There

pending before Cohgress may bring
railroads which earn, taxable
income. Although there is no assurance that there will
fie reductions in the income tax rates, any decrease in
such rates would benefit the lines which incur income

24 eastern roads reported

by 19%.

;,;y■>.Y;VV:vv

-V7

almost

principally because of the great industrial

potential available to

pf the territories

omy

come

net

applicant railroads hope that proposed mergers would
yield financial benefits based on estimated operating
economies.

the districts,
of

1962; 15 southern district roads had

before the Interstate

Commission than at anytime in history.

As to
come

against

for mergers among

greater number of applications

and traffic

the year 1962 was $571 million,
49.5% better than in 1962, and the best year since 1959.

of Labor.
eventually,

anticipate considerable savings,

this property,

The increase in 1963

almost 30%; for the entire Class I

was

net income in

group

auspices of the Department

under the

rules

first quarter in 1963.

a poor

for the 62 roads

ing

The railroads

Thursday, August 15, 1963

...

BROADWAY, NEW YORK 4, N. Y.
Telephone:

HAnover 2-7900

Teletype:
212

571-1530

Volume

198

Number

6290

The Commercial and Financial Chronicle

(643)
road mergers now under consideration
by
Commerce Commission.
Given

labor problems that affect the entire
and

Maine

ward

the Interstate

SECURITY SALESMAN'S

satisfactory resolution of the legislative and

would

offering
who

CORNER

JOHN

were

uation.

industry, the Boston

expect to make material strides for¬

its road to recovery.

wealthy

President,

}vould not be attractive

to the
average investor.

DTJTTON

but

BATEMAN

result

Symington

Wayne

Motivation Creates Opportunities for
Business

Corporation,

Recently the president of

The

marked

upturn

earnings

of the major

railroad

regulated

carriers and equipment manufacturers in the first half of
this year, despite

One

;

may

factor

liberalized

and,

stimulant

arising

from

guide

lines

depreciation

investment

tax

credits.

practices
cars,

use

special

larger

'faster

cars,

Symington
business
1962

Wayne
at

was

and

this

road

year;

fact,

results

from

railroad

area

Bateman

1963.

year

suggestions

our

correctly

progress in the last

some

have

have
the

gain

now

very

and

the

rest

the

large

raise

nearly

in quantity—in
and

will

the railroads'

innovate

better

make

Railway and

the

practical.

believe

know

true

ment

opportunity to

initiative

strengths
marketing methods
volume

freight

world

keystone of the arch.
pends
to

set

action

low

thp

And that

de¬

rates

without regulation

vitality

six months of 1963.

our

territory

and

Final acquisition of

lines with Southern
new

D. W. Brosnan

common

carriers

agricultural and

the first

with

pace,
more

new

113

than $185

job onpor-

control of the Central of

Georgia

ticularly

these

service

new

areas

customers.

Customer

acceptance

evident

the

Southern's service

startling growth

was

par¬

our

rail-

record that

accounted for
28% of the nationwide
growth of piggyback
during the
same period.
Our orders

tric

far this year for 60
modern diesel-elecand
568
new

locomotives

high-capacity

our

One

work.

selves to

They

tion

salesman
of

knew

tax

people,

many

susbtantial

exempt
whom

bonds
he

investment.

Several

orders

for

salesmen

other

secu¬

rities just because they had been
motivated to action and had an

price, there was a large
flow, the dividend return, attractive
special situation
however, was small, but even¬ fer.
cash

tually there

sibility of
in

cash,

was a very

likely pos¬
large extra dividend

stock; and possibly

eventual sellout at
also

was

attached

huge profit.
element

stock

own¬

ership in this company, due to the
nature

its

business,

prominent people who
ciated

with

urally,

this

market and

the

company.

stock
was

and

were

had

the

asso¬

Nat¬

limited

only suitable for

of¬

Top quality, well known local
securities

bank

and

prestige

stocks

investments

communities.

never

interested in that type

was

obtained

And, in addi¬

sold

individual

them¬

exposed

contacting

amount
an

their telephones

Their minds began

business.

one

book

spoken for months.
up

got busy.

excess

not

They

are

door

openers.

The

good

the

security

itself

recommendation and it
as

your

people

introduction

very

are

many

excellent
name

often

can

serve

meeting

favorable basis.

Such ideas as these are
always
helpful in contacting blue ribbon

accounts.

own

the

•;

>•

■

your

jt*

ef¬

your

security

public's

are

sales¬

image that

bankers

factual

many
are

and

the

logical

the

normal

AGENCY ISSUES

are

offering

MUNICIPALS
PUBLIC

UTILITIES

your consideration

majority

people

Often

manner.

RAILROADS

along in¬

just acting in

are

INDUSTRIALS

is not

formation may not be well inten-

most

FEDERAL

securities

enthusiasm in check. Be

your

U. S. GOVERNMENTS

and

susceptible to the

others

EQUIPMENT TRUSTS

even

the

experienced investment

an¬

BANKERS

ACCEPTANCES

alysts will be motivated by others
they also make their own in¬

FINANCE

vestigation.

CERTIFICATES

PAPER

but

one

Yet, at times every¬
is impressed by the
reputation

and

experience

years

Ivar

ago

the world

othrs.

Some

Kreuger

when

astute

some

ment

But,

one

investment
and

men

regardless

the excellent
son

from

own.
can

way

PREFERRED STOCKS
BANK

an¬

confidence

STOCKS

your

faith

you

careful

good

untold
one

study

bad

equally destructive.

SALOMON
BROTHERS
HUTZLER

SIXTY WALL STREET,
HAnover 2-8700

•

NEW YORK 5, N. Y.

Members New York Stock

idea
your

can

a
•*.

J
BOSTON

SAN

PHILADELPHIA

FRANCISCO

DALLAS
/-

one

Exchange

on your

investment
benefit

per¬

receive

alike.

standing of the

One

and

ISSUES

They

investors

whom

idea, make

DEPOSIT

faith.

Every day,

other,

of the world's most

investment bankers.

took him

CANADIAN

startled

it became appar¬
ent that he had fleeced and hood¬

Super-

page

good

help

increase

When

clients

Continued

and

large

The

they had

They picked

freely given to others by invest¬

highway traffic. Southern's volume
increased from 3,865
loaded piggy-back cars in
the first half of 1962
to 16,955 in the
first half of
1963,

and

tioned—they

expanding market for

our

greatly

in
buying that stock.
They contacted people with whom

lead you to many excel¬

investment

winked

extended

city.

terested

others, and

in the position of
passing

Railway and the Georgia and Florida
Railway expanded
our system
mileage to 10,400 and the affiliation
of
and

was

in¬

are

suggestions

thorough and careful. This

the part of Southern and

value

Stop, Look, and Listen

.--because

7,600

banking firm in

middle-western

would

and

fectiveness

keep
"

encouraging
new projects
representing investments of
million, the prospects of more than
tunities

the

suggestions for

transportation service.

vestment

who

pros¬

started

man.

tor.

Industrial development
along South¬

continued

block of very
costly
held stock in a well
known local
business was obtained
by an in¬
a

about

they

of others as the
proverbial
innocent and often mislead inves¬

territory brightened the economic
picture in

ern's lines

business

ideas.

opportunities

Numerous signs of

will

ideas

greater

endless chain.

business

by Congress to free all

bulk commodities.

its

carry

customers

people,

use manage¬

win

Recently

holdings,

and

worth¬

apply the basic
through modern

railroad

an
can

brokers

Railway.
But the

It is
idea

most

Southern

ment firms.

receptive

along ideas that

pass

But

this

for in¬

you

have

investment

Unlike

service

needed

find

you

con¬

account,

others. We learn from

•>

ti*ue widely in the rail
industry.

be
I

advances

merit if

stimulated. They

was

knowledge tells
Acus.may be helpful to our clients.

ability

at lower cost to the
public and in the

technological

security has special

mo^e impor¬
The entire selling

while idea to offer.

there

are

investor,

always

response

keystone.

building blocks

Whether it is

institutional

experience

rail

arch without

suggest

suggestion. On the

individual

era

do about the reduced

The basic

they offer
or

item in

some

vestment purposes.

live

industry will fare in the months
knowledge of what Congress will or will
freight rates bills is like trying

ahead without
no

partic¬

it is offered to the
proper clients
it can
directly and indirectly cre¬
ate new sources of
business; Here
is a typical case that
happens very
often in many
aggressive invest¬

There

new

prosperous

Southern

security,

stantly seeking valid ideas

important industry.

well

They in¬

contrary, most investors

lent
how

salesmen

clients.

may resent the

from

D. W. BROSNAN
;
President, Southern Raiiway System

Attempting to predict

When

think

hour

one

even

client's

lists,

offering the

about

anticipating

anticipated

brighter and

substantial

individual

any

ular

prestige

this

also
sug¬

sales organization.

in¬

beginning of
for

security

motivated

much

that

are

pect

investment firm there
opportunities i to motivate a
every

portfolio, that the client

legislation and lessening of
operating handicaps is real¬
ized, and we believe it will be, we look
forward to the
a

capable

assume that if

sale

vestor's

attempted

field,

this approach rather than
the better days of the
past.

measure

staff

atractive

division

believe, is due to
return to

leading institu¬

with

portance

Our rail¬

20%

over

railroad

operation

accounts.

inclined to underrate the im¬
of offering investment

are

to organize our activities
and to plan our
production and
engineering work to meet present day needs and at the
same time to
anticipate what we feel are realistic future
requirements of the railroad's modernization
and new
car
programs.
Our progress in the railroad
some

of the

one

investors

Sometimes
H.

unusually high level.

our

you

set-vicing investment

•

been better in the first half
of this year than in
any
similar period for several
years. Also encouraging in this
division is that
backlog of unfilled orders currently
stand at an
In

portant point to remember if

checked

market

our

investor.

little

our

portfolio

This

gestions, just like

securities

seeking investment ideas and

been

business which represents

the

management

ef¬

satisfactory full

volume, has contributed well

basis that those who

im¬

tional

maintained this year, with
prospects
in sight for a
very

Here is

and

has

are

.Corporation's

level

equitably.

get the business.

capacity

all-time high

high

established

was

brokers

meeting-

group with ideas and information

such

general overall improvement in
ficiency in equipment usage.

all

provide

oper¬

speeds

the annual

policy

operate

basic, perhaps, is the improved
ating efficiency arising from

something

organization

An Idea in Action

company

replied that the company tried to

of this industry.
this improvement

the

how
treat

ments in operations

asked

was

slightly lower carloadings than last
year's first half lends encouragement to the possibilities
of
realizing some basic improve-

investment

large

this

tant happened.

Salisbury, Md.

individuals

acquainted with the sit¬

stock was sold

CLEVELAND
PALM

CHICAGO
BEACH

mw# ..'ffUKW■

"The Cbmmercial and Financial Chronicle...

(644)

Continued

from

page

7'7

;

The key question today

" -V

is not whether

What will be the future of
piggyback services and

greatly broad¬

ened transit and commuter market will materialize. The

Cushion box

tag of

cars

trailers

100

all

the kind

showed

takes

log,

for

create

resolve

our

equipment it

opportunity to

containers

twenty-foot

the

example,

traffic volume to the rails—can

favorable action by Congress on S.

petition
a

for

the

sure

transportation

that

remains,

they

effect

become
the

carriers

business

com¬

billions

and

''77;'.

President,

The Budd

that

appears

the

upswing.

the

decade,

I -

Government,

states

and

•(2)

dollars

that

will

the

re¬

concentration

down

First,

pansion
urban

our

into

mended

The

and

inevitably

relief

for

the

affect" the

economic

consequently for the

supply industry.'' 7

complexes

outlook

for

railway equip¬

: '

the

The

already in

goJu,

itxes

equipment that is compatible with their present
systems, they are exploring every avenue for provid¬
'comfort.

efficiency and

;7.

-7.;.-

want.

it is not
In New York
City, for example, the Transit Authority
recently announced that it will award The Budd Com¬

$68,800,000

contract

for

600

subway

the

cars,

omy, appearance and passenger convenience.

the

Transit

market

for

.be

Authority.

new

expected

turn

,ment which combines

dollar

the

"compatible"-

highly

increasingly to
and

porate

entirely

materials.

C;"

i '

can

new

These

concepts

This- will

result

systems may

design,

create

is almost

...

railroads'

business

and

research

and

development of advanced equip¬

ment.

•;

j. ; Obviously,

one

transit

principal

•'

;■••••...

problems

*.v

faced

planners

involves the
financing of
systems and equipment.
The mass Transit

the

bill, if
will unquestionably give im¬
petus to the plans and
programs now being formulated

jenacted by the Congress,

;by metropolitan", agencies
jcountry.

and

officials

'7 '■

......

create

•

throughout the

Fourth, there

has
.

and

supply industry.

what

the

extent

seven

meantime, a number
gressively—with the resources

develop

means

provements.

Bay

area

equipment

their

for

way

ultra-modern

ag¬

—

im¬

in the

75-mile

will be constructed

$792,000,000

bond

issue.

commuter

non-profit

lines

agency

—

has
the

been

niuter -ears,

new

developed

Passenger Service

high-speed, air-conditioned

purchased

Company and;leased to
operation in

the

commuter

Philadelphia

PSIC

from

The

railroads,-are

area.

com-

Budd

now

will

the

rules;

somewhat

new

capital

Gross

Eastern

and

what

and

extent will the
the

what, if

ment at the

urban

any,

questions
feel

that
of

sure

re-

the

mass

stimulate

will

1963,
*;

for

enjoy.'

particularly,

durable

N. R.

Crump

consumer

The outlook is for very moder¬
Canadian Pacific, freight traffic in

and to

with

growth

the

extent with special factors. Rail

continue

revenues

railway

extent

some

labor

decline, however.

contracts .will

negotiated

consequently, a greater degree of industrial
is anticipated in the industry,

to- those

the

faced

Canadian railways
by. the-industry in

not dis-

are

the

years

;

tions

portation.

the
*

MacPherson- Royal
If enacted.. in their

the

recommenda-

Commission

entirety,

Trans-

these

recom¬

mendations- would

considerably ; improve the general
environment within which
railways conduct their busi¬

ness
in Canada,
providing greater freedom and, most
importantly, leading to absorption by the Federal treas¬

railroad

ury

of the deficit
loss,

Efforts
ices

freight

new

application,

services provided by the

part of public policy.

are

offered

devise

shipping and

and

better

recent

made

the

gains.
govern¬

for
in

Pacific.
use

;v7

i';,7

control.

Im¬

analysis, and its
research

New

and

ex¬

special-

of technology presently

industry should

//;.{;

profit
cost

Market

years.

Canadian

serv¬

travelling public, and to

means

been

equipment, and greater

available

railways,

continually being made to improve
the

tremely active

decided?

levels,

and con-

Pacific awaits Government action

need

ago

result

significant

.7...

•

Perhaps, at long last, the.long decline in railway traf¬
fic volume and in the

user

charges for the

publicly

7-"

railway share of the freight trans¬
an

end.

pro¬

and. how.

portation market is at

provided for these facilities by the7

;

ago, work, rules remain as an important 7
problem confronting. the • Ganadian Railways. "'.Canadian

predic¬

transportation problem

year

United,
States. In spite of resolution of the Diesel Firemen' issue

ized

much

signif.-. ■[

lesser rate,

The problems of

.some

railroads be involved in the

highways,-waterways and airways 1

1963;

and

peace

levels?

Government?

Product
in

responsible

growth which

associated

major

and will this

railroads

vided

Federal

re¬

economy

in 1963, and," *

area

improvement in

passenger

cars

finally be done about

the

during the past several

Canadian -dohar*

expenditure,

economy,

depreciatiori* schedules

railroads' competitors who
operate on the

will

important effect in; stim--:

exports,

number

.1963,

What will

growth

rapid

National

increases from

tech¬

help will they receive from

several

Investment in¬

ate

subject of rate divisions be¬

Western

goods, continues strong.

investment?

How will the controversial

•

appears that

by about 5%

portant gains have

the

less

Nonetheless/it

fleet?

tween

1962, will probably not be
rate

iir encouraging

railroads.

result in the modernization and
expansion of the
car

CRUMP

and

sumer

the

•

profitable

incentive

diem rates for railroad freight

solution

Improvement Corporation—which
has been set
up by the
'-city to help subsidize and
improve commuter services.
first of 55

work

What will be the outcome of
the present discussion
per

The

year.

although at

unique approach to
introducing modern

through

moving

command

over tlie
half years and which is
made possible

?by voter authorization
Philadelphia,

are

design work is under

rrapid transit system, which
eight and

cities

financing essential transportation

Full scale

Francisco

domestic production.

ing

John D. Cannon

mergers, the purpose of

conviction that the

v7 Beyond that, exports are still show7

For instance:

percent tax

for

occurred

^Cfhese gains
V much of the

over

can

carriers

Montreal, Canada

\icant gains in this

tions about the economic outlook for
the railway equip¬
ment

been

;'v similar

number

but

gain in Canada's Gross National Product of

which

ulatiiig

or no control.

answering before any prophet

expenditures
the

are

rapid

hai-had

Again Federal government
regulatory action is needed.
'

777- ;'7.

Levaliiation

on-

will .increase

which we,-

stronger,

rail

fluctuating figures

^Chairman and President, Canadian Pacific,

Canada's

the

tentions indicate there will be

Third, there is the factor of
is

the

people to the principles of fair play; of free
competitive opportunity for all.
-•

peated this

bad,

management

lead to unwarranted

interdependent industry

volume, but solidly

equal

months.

nological progress that leads to
profitability.

which

our

of sub¬

years

will eventually
combination of courageous and progres¬
management and the irresistible devotion of the

solved

feather-bedding issue. Until this issue
solved, the railroads will be handicapped in the

particular

...

optimistic dbout the'future' of the

and

The

Its economic

famous

incor¬

control,

we are

Second, there is the factor of the controversy between
and

year

that' 1963" will

is possible therefore that the
recent

optimism not alone

our

the, profit¬

over

May of last

;

—

labor

railroads

and

■

Consequently

suppliers, have little

railroad

plaguing problems

with fortunes of the

the

last
cars

of the 1955 record of

base

supply industry

When

order,

date

freight

agree*

stilLfar short

And

of business

stymied in Congress.

opportunity
for those manufacturers
whose railway
design and en¬
gineering teams have demonstrated records of achieve¬

urban

fact¬

other

rapid transit systems.

ment

recom¬

exaggeration to say that).;
barometer of

number of factors

new

same

industry'has, just been through five

opLmism.

lower theirrates to meet the
competition of other forms
of transport. This legislation is. still

great segment of the market is in those
cities—San Francisco, Los
Angeles, Washington, Atlanta
and others—which
propose in the near future
new

basis

the railroads,

synonymous

orders

experts

were

the

ordered

pickup :of railroad purchases could

requested
by
President
;
r
Kennedy in his Message to the Congress in April of lastyear. - The essence of this equality is contained rin the
Fair Competition Bill which
permits the railroads to

equip-

maintenance.

eoualitv

cities-

cars.

cars

total of about 55,000
cars, better than

normal business.

trustworthy

industry

Most

CANNON

The

Our

the

Presidential

railroads; the

high performance with long-range

savings in operations

the

reduction

the

First there is the factor of compet- ~
itive equality for the

competitive

newer

supply

according

equipment, other

and

spending

the

railroading is, in turn, dependent

York at least
$13,000,000, more than half of it in the
initial cost and the remainder in reduced
operating and
maintenance costs over the life of the
cars,

the

New

save

most

23,364
cars

railroads

3,188.

industry has been

cut

7.7

business

13,778

6,074, whereas the

only

154,509

Unfortunately, the profitability of

This light¬

weight, high-strength stainless steel fleet will

the

our

freight car orders
illustrates this point:

total

bring orders for

ability of railroading.

largest transit order in history.These cars will be stain¬
less-steel, and will provide important Advances in econ¬

May

record

year

only

in recent years but

industry in

traffic. We believe

our

upon

suffers.!

•

pany

their

business

our

.7.7' .-7.7:

When

The

with

totaled

climate is fa¬

ui~y buy. the equipment, faciland; supplies they
need and
It is then that our business is

good.

passenger

good.

June

totaling

bolster

and

taxes

railway equipment and

outlook, therefore, is
nation's rail carriers.

chase

year.

Railway Progress Institute, Chicago, 111.

areas—such as New York, Philadel¬
phia, Boston, Cleveland and Chicago.
While procurement authorities in these cities must
pur¬
-Edward G. Budd, Jr.

economy,

compared

effort

^V >

completely dependent

ing greater modernity,

the

sive

V Chairman,

1963, the business of

f,irst half of the

American

metropolitan

major

Monon's outlook is bright-for

77:7

ex¬

far in

position and to increase

JOHN

is the

modernization

transit

existence

The

and

this year. We have been able to strengthen our financial

parts,

there

course,

finding commission/_

W. C. Coleman

population,

two

"
77,:
much-needed

bedding issues

'•

tax

''.'ty.

The

continue this trend.-

increasing urbanization and

breaks

the

7 7^77 -v.
I
(3) The settlement of the feather-

for

cars.

market,

business

Congress. "'

in; unconscionable

municipalities,

developing

sult

•next

will

reasonably
"

generally

assistance

confiscatory

;

During the

expected

billion

situation

general.

v..-;-

San

prospects Tor

number of other questions that could
be

railroads, and

If the political

(1)

private organizations. Of

sum,

This

;

the

ment

competitive.'--and

vorable

transit systems by the Fed¬

mass

procurement of transit

asked

the part of tfre carriers to become

Pa.

7v:

eral

this

the

are

at least equality with other
privately owned

three factors that would be of

are

estimated $10 billion will be invested

than

new

they have

their financial position.

transit and rail commuter market has emerged
dominant influence on the future growth of the

the

^can

what

These, and

COLEMAN

railroad

mass

[nation's railway equipment manufacturers.

re¬

economies.

immediate

There

...

BUDD, JR.

Company, Philadelphia,

v:7<-

■

-The

•

many

7 Chairman and President, Monon Railroad

railroads,

generally and for the nation

EDWARD

that

acute

area

W.
••7

is >whether

however,

to meet their individual transportation crises in

before

adverse

1061 and H. R. 4700.

of economic growth ahead for

omen

common

whole.

And

almost

industry?7-'7\^'^,777''777•';77 7)77

question

dollars in transportation cost savings to the public would

$94,000,000,

only with

come

Passage of this legislation designed to bring real

approximately

con-

f7T77

■

public—and this also means, of course, the chance to

win

■

railroads,

time,

and methods fully for the benefit of our customers and

double that of the previous record high of 10 years ago.

sources

money-saving equipment

use

tainerization?*77''' .V. 7.-7,

exists, The Budd Company's railway back¬

now

for

major metropolitan centers will have the financial

service.

transportation

low-cost
the

But

and

service,

rail-highway

investing

market

than $24 million, plus the acquisition of 160

additional

useful,

of various types, with a combined price

Thursday,-August 1-5,-19637

Meanwhile,

-diversification

CanadianPacific

continues

its

active

program in both transportation and non-

transportation fields.-

777

Volume

198

Number 6290

The Commercial and Financial Chronicle

ing.

Practically

saiisfactory

the

all

rate

tions,

new

—are

being developed.

The

have

the

are

aid

running, at
of Federal

markets—mainly in the electric

railway

suppliers,

experienced

the past

mines

and, with

particularly

somewhat

three to four

years.

the.

depressed

industry

very

the

needs

service

the

railways. The only hope for any major increase
railroad car production would be for the railroad

business itself to improve
One

the

area

subject to

revamping

recommended by

the

government

recommendations,
elements

the

substantially

with the

-will

Canadian

both the carriers themselves and the

pect improved operations.

real

effect

remain

strengthen

industry

suppliers could

continuing

last

over,

into

crease

all

1964

and

which started only about two

be¬

even

the

new

years

ago,

gross

for the 1964 model year. Our movement of coal in

solid trains, direct from mine to consumer, shows
prom¬

ising growth, and is proving that rails

ex¬
-

for'

We look

year's volume,

for the model year ending in Sep¬
tember, 1963, of almost double that of the preceding
year and gives promise of a 20% to 30% additional in¬

and

1963

dangerously

continues to grow.

—

improvement

increase

should show

Policy

implement most of these

Transportation

auto rack cars,

concerns

Transportation

undoubtedly

little

will

yond. Our hauling of assembled automobiles

the MacPherson Royal Commission.
decides to

TrucTrain

—

better than

great deal of conjecture

National

can

earnings

Despite
the
unpromising
immediate
outlook,
the
Pennsylvania—like the industry generally—continues to
develop challenging customer services. Our piggyback

for

Any improvement in the
on

there

Thus

in¬
adequate for;; an industry so important to the Nation's
economy and military safety.

builders,

car

that

earnings.

field

power

conditions

car-building picture will depend entirely
of

subven¬

commodities

■

large volume, at

can

single

move

considerably lower

cost than previously, thereby
enabling the rails to
pete effectively with all forms of transportation.!

.5 In

addition,

continue

make

improvements in routine services.
aggressively
the

shaping

business-getting

actively and
pricing structure to generate

our

are

greatest possible volume of traffic at

tive level

TrucTrain

capacity

rates;

This

nomics

the

encourage

new-'industries "on * our f lines

year's good performance.

volume has been

fleet.'in the 1963

and

flat

cars

covered

ahead of last
7:

are

total of 6,426

modernized

flour, and 70-ton box

cars

tin

new

including

cars,

increasingly

our

for efficient handling of

names

and in¬

continuing upgrading of the

and

handling

new

heavy

hoppers for such bulk commodities

ment and

and

for

encouraging

••

program

rebuilt

completely

eco-"

program

Accompanying this aggressive seaVch- for
creased

traffic

those- already there to expand is running

car

equipment wherever the

permit.. Our industrial development

■

of large"

use

and pricing to meet competition

cars,

locating

remunera¬

includes the fields of

program

rates,', pricing to

in Vconventional

moving

com¬

loads,

lime,

ce¬

with cushion under¬

manufactured products

plate. An additional 2,700 freight

cars

are-re¬

ceiving heavy repairs, and racks are being provided for
124

cars

business.

for

the

previously

J \
This persistent emphasis

automobile

growing

noted

sales and service typifies,
Continued

Unless

page

you're in business

just for the fun of it...
IF
a

you're in business just for fun and

businessmen

how much

can't afford this

profit, too,

out of business/

and

V More

luxury. No matter

(or how little) 'they enjoy their work,

they have to make

eventually

cost-conscious businessmen

these

days; First they look. Then they

cause

they like what they

Last

year;

eagle

alone there

—

These

profits

see

—

339

new

were

same

Come South
-

v.-.-..•■

•«••.

AAV^^y.vx.>5«««««<<^C<^6S«!C^'.v.w.-.%>y,:>vx.»<.>x<<->««.s-.;..-.w..-,-.NV^.x<<<,:.^:^.;:;.:.:..v.

C^X*X>X*^Xv Ivy.; 2?>

now

facts and figures to
means

;

$34i

at hand

near

fair profit to

\ -

and see! Our Industrial DeveK..

opment Department

•^*AW:%<&CC£$5

than

thing—increased production

j$-absorb the goods they make at

^-^-.c v

industries of all kinds and sizes, all *

The manufacturer/'^

be-

industrial developments *

investment of

efficiency plus fast-growing markets

■-■/••

move,

in the modern South. S

looking for the

—

looking South

are

along the lines of Southern Railway
were

representing
million.

eye

with

:*•

give

never

thought to the money you make —fine. But most

can

give

you

the

no-nonsense

proveThat the-industrial South

business. Profitable business, for you! Call

write today.

No obligation and

confidence. "Look Ahead

—

complete

Look South!"

PRESIDENT

wwvTw

SOUTHERN
WASHINGTON, D.C.

RAILWAY

SYSTEM

SOUTHERN SERVES THE SOUTH

The Commercial

(646)

Continued,

from page

erty, better service, and the strides it is making in
competitive pricing of its service.

industry's 1963 determination to do a con¬
stantly improving job for the customer, while fighting

think,

our

The

prove

Industry

for

track,

century.
Iron
in 1902 when
of a

it assumed its present name

Company,

manufacture

the

used in

freight

the

Needless

ness.

interest

transportation.
For

some

say,

the
•

have

souri

past the railroads

rules

i-»v

stroma

Small

tinuance.

vi",1ie* or-'its

W. W. Heimberger

financial position of

new

lative

action

correct

that still

However,
relief.

;

One

has, been- laid: for eventual

the groundwork

initiative

agement in its competition for business.
nent car-builder has
new

freight
in

than

all

aimed

meet

and

freedom

from

What

history.','

prior railroad

cushion

carriers,

underframe, and

Piggy-back, auto-,

specific customer needs for economical

unloading,

faster

delivery; schedules and

lading damage.

the

future,

This

freight

new

both immediate and long-term?

is^at

variance

see

around

actually built and put in service.

cars

with

forecasts

relating to

cars

dered, but it must be remembered that there is
stantial

time-lag

service.

the

and

delivery

for

the

longer term, we see no boom years

car

variety unless

freight

arise.

national

some

confident,

are

emer¬

that

however,

building will continue in the 40,000 to 45,000

car

Obviously this will not offset the

per year range.

ber of

order

or¬

sub¬

100,000
should

gency

the

between

cars

num¬

scrapped; but higher capacities and special¬

ized designs offer the potential of more efficient use.

Buckeye Steel Castings is currently making
investment in

primarily

and

new

designed

modern-to-the-minute

enhance

our

This is concrete evidence of

of rail

our

facilities,

car

of the

construc-

faith in the future

transport, and our confidence that the railroads
steady progress in the years which lie ahead.

will make

DOWNING B. JENKS
President, The Missouri Pacific Railroad
-

The

Missouri Pacific

results and

Although

below those of the

higher

revenue

first

second

earnings

this

year

half of

quarter
for

level

the

national

economy,

remainder

healthy expansion
of

new

the

serves,

equipment

the

Nashville

based

are

general and

recognize

the

future.

the

and

permit

under

progress

handicaps

couraged,

however,

ports

decisions

and

fairer

remain.

lief from

by the

the

general

en¬

official

re¬

ten

restrictions

the

need

Faith

been

tinuing

the

future

demonstrated

program

averaged

around

This

re¬

capital

traffic

year

for

which

the

last

capabilities

are

have

included

revenue

unitized
are

and

1963.

flexible

this

the

cost

orderly

are

the

average

through 1960.

our

for

cost

of relativity

mass

array

Manager, Rectifier-Capacitor Division,
Corporation

Corporation,

supply units.

equipment

major supplier of signal recti¬

not

are

Communications

and

major

overall sales, the Sig¬

Depart¬

Railroads represent an

our

one

our

which

electronic

are

priv¬

serve.

areas

and

systems, and regulated

power

While sales

our

Today's emphasis

flexible policies

rack

reliability in

electronic

components

systems is somewhat "old hat"

the

railroads.

suppliers, have pioneered.
r

cars

each

have

re¬

this

vigorously developing

utilization

year

velopments

which
of

period

the

area

from

1925

Continuing movement of new industry into L&N ter¬
ritory and expansion of existing plants furnish another
basis for our optimism.
In 1962 there were 230 new
plants located along our lines which are expected to

signal

Fansteel

proud

many

of the

well

Roy

are

responsible for

performance

millions of hours of reliability

minimal failure
most

record

rate

sophisticated

of its

its other railroad products.

which have been accumulated

the

laid

systems,

of today's high reliability achievements.

signal rectifiers
The

Their de-

achievements, such

groundwork, contributed to,

many

already

equipment

and

non-failing

year

coal movements in 1962 and 1963

the

call for rates which constitute

now

portion of

ileged to

accounting that

operations,

better

attractive,

sell trans¬

the late Commissioner Eastman

era,

Metallurgical

market and

piggyback handling

increases

train

we can

provide himself."

important segment of

provide

justifying rate adjustments that have helped to

keep the volume of
above

their

gage

vehicle.

own

which they, with the support of their

automobiles

integral

showing results

shipper's

customer
can

nal

ments of

being expanded not only to

also

the

fiers, surge arresters, d-c

Our locomotive fleet

accounting but also

Rates which..

through its Recti¬
fier-Capacitor Division, has served the railroad industry

control, modernizing and

powerful and

large percentage

Fansteel Metallurgical

rates and pricing of services.

the

specificity closely; related to the ground.

Fansteel

ex¬

budgeting and determination of the

and

will

C. E. LE ROY

per

commodities

10 years,

which

private ownership only if

General

We have purchased more than 6,500 new freight

tracing and

steps

years ago.
Success lies only in rates which
buying and inventory practices to exploit the

has

type of traffic, which is estimated to produce $14 million

prop¬

five

since 1960 and have authorized
$12,500,000 for pur¬
chase of new cars to be delivered this
year, f

car

Only

dropped at

past

The times
William H. Kendall

cars

cover

the

step, must be drastic,

d-c power

units.

steel have

over

shade truck competition proved fruitless

to accommodate piggyback traffic.

sulted

Downing B. Jenks

the

case

for almost 40 years

and

year

production.

expanding freight yards, clearing lines to handle wider
higher as well as heavier loads and new installations

being replaced by

floating in the void."

and

adjustments and

opportunities.

iron

described railroad freight rates

Improvements

pansion of centralized

rate

freight service irresistible will stop

quality, than he

expeneditures,

Pioneering efforts of the L&N

op¬

position.

has

made promptly as individual

„

each

keep the railroad modern and
efficient has been made without jeopardizing our work¬
years.

railroad

portation

con¬

from

increased

business

L&N

million

individual

were

$1.8 million

will exist in

and

capital

$43

effort

the

Substantial traffic

Today the standard of cost and service against which

provide

before the traffic

now

railroads.

railroads—indeed, all for-hire carriers—must

transportation.

has

Langdon, Jr.

cost-Service product railroads can manufacture.

equality of opportunity in the field
of

encourage

recognizing the

outmoded

Jervis

his

200 members of B&O's freight

year

specific

revenues

merely meet

growing evidence of public

awareness

equipment and other improvements to its

state

com¬

are

with

ours.

trend.

either

justice of the railroads' plea for

continued

starts

indicated

rate

make

allow existing

al¬
The

because

year.

short,

scale

new

despite

by actions of legislative and

petitive conditions

needs,

motivations.

the

influence

may

pro¬

complete

already, however, prior to installation of

B&O's

Company

in particular.
on

but

essential

customer's

example, last

returns

Railroad

to the future progress

ours

dependence

our

economy

regulatory bodies which

however,

most

marketing—the

and

This

been regained

marketing program which stresses

operations

the

his

com¬

alternatives,

our

officers of the eastern

of the Louisville & Nashville

optimism

and, after several revisions, is

ers

KENDALL

for

been checked with representative
producers and receiv¬

use.

all

the purchase

for

working

permit close

six

of the economy in

proper

profit.

transportation requirements of 7,600 plants in the metal
industry—22% of the industry. The result: a
proposed new scale of rates on iron and steel which has

are

ton unit cost of handling each class of commodity.
This information will be fitted into a customer-oriented

wage

Pacific bases its

outlook

territory it

our

performing

will

in other

our

were

unforseen factors
depressing

The Missouri

timistic

the

capacity.

rates,

sales force, through personal interviews, determined the

year.

above those of

adversely affect

the

income

1962.

A strike in the railroad

for

net

reduced operat¬

major industries, a rise in

could

and

For

inventory control and accurate

same

land

the

brought

months
the

costs

1963

revenue

search,

total

period last year, as the result
longshoremen's strike, slightly

of the

ing

expects modestly better operating

quarter

outlook

Computer operations
V

earnings in 1963 than in the previous

first

exerted

ing

heavy

production

high-quality steel castings used in freight
tiori.

promi¬

one

host of others—all

We,are still inclined to believe thatil963 will

40,000

particularly good

of railroads in

"There have been more

aptly said:

view

of modern marketing techniques, re¬

President, Louisville

man¬

designs developed in the last five years

car

use

principle

furnishing the

The management policies

picture

displayed by railroad

loaded

business

quicker, clearer

ducer-initiated search for

hundred pounds

per

prices shippers want and will

Railroad
the truly bright spots in the railroad

car

will be encountered,.

further delays

vision and

the

refrigerator

to 50%

ac¬

there

foundation

service improvements

yet borne fruit, and It,now

of modern

tool

frozen foods, for instance, shippers

savings of

quarter

combination

industry is

future,

our

nor

accommodates

unit in freight charges.

per

optimum

activity, and

not only a

appraisal

generous

first

(

B&O
is
proceeding on a
modity-by-commodity
basis.

maining aggressively competitive and operating in one of
the nation's top growth
areas, the Missouri Pacific has

appears

realize

inequities

Neither of these latter has

to the shipper

six

corre¬

massive, time-consuming recasting of
our price structure.

loading of

Through the

which requested legis-,(
of long standing.

dent's message on transportation

pass

time

situation—not

rules, and the.. Presi-,

work

neither

savings to the railroad which result from

the kind of service and

mendations made by the Presidential Railroad Commis¬

out-moded

the

this

threatens

ness

incentive

our

spite

first

the

celerating erosion of desirable busi¬

minimum, the less it costs

was

regarding

several;

In this area,

from

the

for

LANGDON, JR.

railroad

ternatives,

when

reflected in the procurement of 34,000
freight ears. Other hopeful signs included recom¬

sion

the

following the simple

guide lines for depreciation afforded some tangible re¬

lief, which

late-starter

gives

results

1962,

for

$1.89

activity of B&O likely to improve its

find

cars.
These rates are price induce¬
shippers to load freight cars with more of their
commodities—and the more that is loaded above the

can

;

investment tax credit and new

The 7%

encouraging

with

territory.

our

Because the

; V
on

per

service and equipment which will win traffic at

Company.

In the movement of

1962 brought several rays of light into this

The year

bleak picture.

parts of

function—rto

ments to

adequate ^purchases of new

equipment, regardless of the need.

heavier

con¬

that the

wonder

the railroads has prevented

road's

Angeles, in cooperation with

pricing is under constant study.

petition with transport media, which
were
born
of
subsidy and have
w^xed

Truck

rates, by which

compounded by com¬

—

the past couple of years.

realizing

are

depreciation

unrealistic

and

the

improvements have been progressed

Pacific

Our

over-regulation, antiquated work

allowances

While

annually,

future the most and the fastest inheres in the marketing

Southern Pacific.
Highly flexible service is being
provided through the use of all five piggyback plans, a
container service, and the railroad's subsidiary, the Mis¬

terrific odds in the form

have faced
of

period

The management

the

years

level

same

between St. Louis and Los

rail

future

yards.

traffic

President, Baltimore and Ohio Railroad Company

Trains are
maintaining faster schedules. A de¬
pendable two-day service, for instance, is being operated

comprises the backbone of our busi¬
vital

and

$2.30

compared

JERVIS

fronts.

construction still

car

locomotives and improvements to

shops

additional

plagued by extreme freezing weather and record floods

the

healthy freight volume.

new

1963

requirements of expansion and to provide

structures,

Service

castings

steel

are

sponding

almost

grows

and relocated industries

Thursday, August 15, 1963

carloads

earnings

months

1964

the
Today,

production of steel castings.

Southwest,

capital program is not as yet completed, it is ex¬
pected that capital expenditures will continue at about

converted

weie

operations

and

far ahead of national

industries, and the list

new

freight cars, 156

three-quarters

than

South
are

80,000

this development trend has continued in 1963.

Our

shippers with the equipment they need, much of it
the Missouri Pacific has spent more than
$100,000,000 in the past two Vears alone for 3,217 new

continuously allied with the Railroad

Pacific,

produce
and

specialized,

organized in 1886 as The Buckeye Malleable

First

Midwest,

its

Columbus, Ohio
Our firm has been

new

And the

To meet the

Castings Co.,

President, The Buckeye Steel

the

type that produce

HEIMBERGER

averages

daily.

fronts—and that 1963 will
in retrospect to have been a key year.
going to win on both

are

served by the Missouri

operate as a modern and efficient Ameri¬
free enterprise As I have said elsewhere, I believe

for the right to
can

states

\and Financial Chronicle

our

that would be
aerospace

information

components show

enviable to

even

projects.

Though reliability is not new to the railroads, it is an
area

which

needs

which Fansteel
ities

and

can

constant

improvement,

and

in
facil¬

one

and is aiding the industry. Test

capabilities, unheard of a few years ago, are

Volume

198

Number

available;in which

now

accelerated

rates

tions, therefore

6290

various

assuring

(647)

be tested at

can

condi¬

environmental

conformation to

product

new

The Commercial and Financial Chronicle

products

new

under

the high
reliability standards required that are so neces-

to prevent failures and

sary

their accompanying losses

downtime, in damaged equipment,

in personal

or even

harm.
In

public transportation,

can

between

the

and

good

affects sales

and

railroads

bad

be and

can

business

the difference

are

public relations which

profits.

and

competitive

found, these failures

in turn

Profits must be improved

reliable

operation

this

must

goal is to be achieved.

We in the metals

other

industries,

electronics industry, as well as

and

allowed to operate and compete for

are

business unrestrained by government control.
much

We have

freedom, than the railroads have, in seeking

markets and

our

being competitive.

We, therefore,

port any plan that gives the railroads

sup¬

freedom in;

their

operations, provides

bulk

freight rates, and permitting controls for cost

ductions
A

well

equitable basis for setting

for

mergers

healthy railroad industry is essential to

Fansteel

particularly, to
Fansteel
reliable

and

vital

business

our

public and

the

national defense.

our

will

importance

continue

equipment,

m
railroads with

support the

and improved products, and by

new

fighting for legislation which will enable them to

run

their operations on a sound business-like basis.

our

duty to do
and

It is

for the health of the railroads, the public,

:lit:littltlii

strong national defense.

Wm*m

re¬

profit potential.

iiiiiilli
JOSEPH

ill:!!
xi: xi:Vx

LANTERMAN

President, AMSTED Industries, Inc., Chicago, 111.
AMSTED

.June

30,

Industries'

1963,

was

income

net

all-time

for the

quarter ended

record for

quarter

any

in the company's history.

Net

•x

$1.05

119,

share,

and

;;

income

cents

topping

record of

quarter

xi 050

ago,

year

5 %. the

previous
quar-

30, 1959. Sales in the'

ended

June

in-

30,. 1963,

„

$42,122,455 from $37,864,ago.

year

The

equal to

$2,917,180,

was

from $2,555,-

$2,773,234 set in the

creased to

■

quarter

ter ended June

the

14%

company's

results

im-

have

proved from quarter to quarter this
fiscal year. Earnings increased from

($857,202,
the

$1,171,149,
the

about
..

quarter

March

31,

total

sales

side frames,

and

contributed

upswing has been reflected in

such

AMSTED

railroad

calendar
the

railroad

55,000

1959

when

from

ordering

56,500

such
,

cars

boom year.
to

burdens

cars

This

ordered

cars

determination

freight

1963.

year

37,600

products

between

bolsters, couplers, brakes and springs.

expected

about

order¬

car

have been

cars

will

continue

good pace for the remainder of the year.
that

will

would

last

for

sharply

ordered.

were

ordered

about

and

year,

Chicago and

It is estimated

This

California

from

equal

all

still

to
far

However, it points out the railroads'

improve customer service

spite

of
Wt

featherbedding and legislative restric-

tion.

,■!

x:.I,,.;

I".l x

The sales outlook is good for AMSTED's other varied

product lines.
r

,>J

During the past few

Large, specialized types of freight

in demand. In turn, this

production

J. B. Lanterman

^months, the railroads have stepped-up freight

the

-V .'

substantially to the earnings rise.
ing.

1963.

amounts

AMSTED's

M.f

31, 1962, to

cents per share,

business

50%

share,

per

Dec.

ended

Railroad

•

cents

quarter ended

Mnr

These products include roller chains and

l^Mgftx

sprockets, small precision machine tools, cast iron pipe
for water transmission, clay
pipe for waste transmission,
and protective

coating to protect steel pipe from

corro¬

sion.
The

company's earnings for the quarter ending Sept.
are expected to improve from the year ago

30,

1963,

period.
*

However, due to

vacation

ber quarter results will not

shutdowns,

Septem-

top the June quarter record.

A railroad strike
would, of course, quickly alter this
picture and severely deflate estimates of sales and earn¬
ings improvement. Such a strike would force production

curtailments

all

AMSTED

plants,

those

even

not

serving the railroad industry.
AMSTED's

continues

plant

and

program

pursued

equipment

first nine months

diversification

vigorously.

amounted

the

fiscal

and

expansion

Expenditures

$10,800,000

year.

for

the

This includes the

January, 1963, acquisition of the fixed assets of Oconee
Clay Products Company, a Milledgeville, Georgia, pro>

ducer

Total

clay pipe for waste transmission.

amount to about

$15,000,000,

$6,000,000 in fiscal 1962.
a

new

near

For

spending for plant and equipment in 1963 will
up

from slightly

than

This includes expenditures for

railroad steel wheel plant at

Bessemer,,Alabama,

Birmingham.

steel wheel

This plant, the company's seventh
facility, will be completed late this year. It

Continued

pane

New York

service, call

write:

Freight Office: 233 Broadway; Phone: DIgby 9-1100

New York Passenger Office: 500 Fifth Ave.; Phone:

Pennsylvania 6-4400

The Commercial and Financial Chronicle

(648)

Continued from

the Southern

the company to better serve

will enable

Results for

the

less

During the quarter, the first commercial installation

and U. S. Steel has announced it
commercial unit at its South Works.

Controlled

method

metal

Pressure

Pouring

producing metal

AMSTED's

Applying the

Railroad

has

research

AMSTED continues

and

test

train,

other

initial

load, and

by no
to

with

work

the

neglected,

railroads

new

rr;.

riding qualities.
designed

for

than

has

five-car

re¬

truck built to carry

giant six wheel truck

100-ton

capacity

freight

cars

undergone preliminary testing.

the

territory

serve

the

economy

favorable

weather

the

prevails

devoted

Pacific

during the

railway.

growing

of all types of freight.

While crop

bright

they

revenues

will
of

ance' of

1963

but

benefit

from

not

can

harvest is

that remains

crop

and

other interior

to market at

move

and

other agricultural

frorau these

revenues

sources

•

that

year

means

greater movement

and mispellaneous

contribution to

-Serving

the

our

with

Northwest,

freight revenue.

de¬
,"

solid demand

Northwest

and

eastern United

the

•

products will show

are

lumber

tion,

racks, comparative

showing healthy gains each

are

Northern
revenue

Pacific

anticipates

increase of 2V2%

ticipated

increase

scheduled

over

there

over

are

territory

are more

than

rail transporta-'

freight

gross
on

the

are

responding to

increasing

car

our

ship¬
damage free 50-foot box
to

pers

new

cars,

increasing open top and special

instituting

and

of upgrading

Bridges

are

being

existing;

pro¬
cars.

strengthened

operating

Pacific

expanded

were

1962,

noted

-''

first six months

- ""

reduction of $304,880, or
that our operating ratio
was

revenues
.

76.8%

compared

the

great

about business condi¬

control

operating

expenses

many

areas

are
,

factors have entered into the brighten¬

ing picture of the C&El operations. Savings in
same

eco¬

strict

responsible for the improved operating ratio.V

in several

improve¬

and

amount

expenses

to $1,000,000 annually.

time, there has been

At the"

notable increase of the

com¬

pany's business during the last 10 years.
Carloads of
freight handled in June, 1963, were 31,993, as compared
with 28,577 in June, 1962, an increase of 3,416 carloads
„

i- or.

12%. Carloads, in June, 1963,:were the highest for any

June

since .1945.

The

generally improved

increase

conditions

carloadings reflects
the

territory

served

by the company.

half of 1963.
„

loaded

permit us

•

soil

which

equipment,

to take care of the

our

new

•

conditions which produce

climate

and

within the brief span of 12 years

area

processing of

Among

pew

paper

center for the manufacture

into its hundreds of products.

and extending, organizations leading in this

endless; vatietjr of Industi^^

*j^

-is illustrated

by installations by .such well-known companies as Co-?
lumbia / Nitrogen, Procter and Gamble, United. States
Rubber, Ohio-' Grease, Koppers Company, KnOx- GlOssJ
Glass, ;Litton 'industriesS Evans Harbor

Hazel-Atlas

$13,743,850 compared -With- $14,048,730 during

It should also

will

Products, and Alabama Metallmgical Corporation.

corresponding period in
the

heavier

for pulpwood

trees

4.4%-.',

for

ideal

The

have made

;

totaled 169,070 compared

for the first six months of 1963

has

months

expenses

c
/

Can /Company, Mead Corporation, Sti Joe Paper Company,JJarathon Corporation, -and Union Bag-Chmp Papey
j- Corporation.;-.;'/ -v'
' '

general?

year

Mixon

railway operating '

this

ahead.

for the first six months of 1963 totaled $17,904,-

an¬

they have been at anytime during the first

our

the first six months of

Based

now

Our

year.

undpubtedly soft spots

optimistic

feeling

gram

2.2%.

lumber

nomic picture, the trend seems to be toward stabilization
of the economy at a
healthy level. Businessmen in NP
tions

six

161,874 carloads for the

1963

If the

level, 1963

and

Northern

1963.

this

development-are American. Can Company, Coritihental

with 84.3% during the first six months of 1962. Increased

1963

1962.

revenue,

$24 million for

ment program in

i While

newcomers

year p

David O. Mathews

revenues

■

Piggyback and the movement of automobiles in multi¬
level

for

interest

.." 1962, an increase of 7,196

•competing

1962.

over

appropriation

with

markets in.

States has increased.

increase

of H the

first six months of

producers

the

and the

economy

industrialization

equipment,

charges ior the, .pp

933.58, an increase of $1,227,793 or 7.4% compared with
"the first half of 1962. Carloads of freight handled in the

competition has weakened,

movement

Ala¬

deficit of

At the same time

from

based

supply,making, available

and

mortgage income bonds due in 1997
andt on income debentures due in'

large portion

national economy maintains its present
high
revenues

our

section.

vital

movement

vigorously and the movement of lumber to
central

continuing

this

Railway

This feeling is

soundness

2054.

the

for lumber.

lumber

half

first

;$1,673^911.75, compared ••>*§

contingent

Pacific

full

in the traditional markets for northwest forest
products, housing starts op a seasonal level are up, and
a

Western

The

and

bama.

for the first six months of 1963 and

prices

;

the territory traversed by the
Georgia Railroad, the Atlanta and West Point Railroad,

anticipated increase in volume of traffic in theuiioiiths

has been car¬
- past
several

first six months

While foreign and domestic

there is

feeling of optimism in

the

for

Railroad

$47.1,63} ;00"ior thev. |
ofi962;ThVs income ;;
enabled us'to make full apprpprias
trons for' capital and. Sinking funds"

total freight revenue.

Pacific

Point

Co.; the Western Railway of Alabama,
and Georgia Railroad

manu¬

goods which make

lumber and lumber products accounts for
our

the

months

six

amounted

and other manufactured and miscellaneous products. A
crop

C. MIXON

While the traffic volume anticipated and predicted for
the first half of 1963 did not materialize, there is still a

;

termines the expenditures producers will make for new
farm equipment, new
automobiles, household appliances

Railroad

;;

.•

equalling, if not surpassing, 1962
VC ..
This is encouraging for it is the-harvest

for

Income after fixed

first'
,

products with J963 gross

prolonged

•

the economies effected and improved traffic have
dramatically in the- earnings of

1963.
.

stantial movement of the harvest

President and General Manager, Atlanta and West

Eastern Illinois Railroad

C&EI

the

railroad

this

will

later date and, as a result, freight

out

years,
Robert S. Macfarlane

will be deferred accordingly.
•
*
Realization of a ;good 1963..crop should result in a sub¬

good

six months of 1963;

These railroads

manifested -themselves

farms

locations

operating results should be- satisfactory-during the last

;

result of long-range planning that

ried

revenues

factured

sharp turndown in traffic

President, Chicago

marketing pattern develops. Past
experience shows that the portion
the

this

"shutdown :dUe to labor -difficulties, our cash/position and

West Coast.

DAVID O. MATHEWS

the

Soutijj

}:> enable the handling of larger'and

predicted

under way

•

of^er^ce;'?:;;-;;vSf.^.

should exceed those of; 1962,

revenues

patronage

was

operating

Chicago: and

communications

our

only modestly. *'

grain during the bal¬

1963

the

gap

qui

Steadily. increasing

The extent to which rail

movement

until

Southeast.

train encourages

Barstow, California;

and, barring unusual or unforeseen developments, the

prospects favor another good
in Northern Pacific territory

this year.

Fe has .added 1,643

May,

current
crop

and

~ *

not

are

late

were

slightly ahead of last year. No sharp
changes in the general economy of the Santa Fe traffic
level are expected during the remainder of the year
half of 1963

!•

conditions

v.-*

Preliminary figures indicate net income for the first

„

and in the movement

serve

^gtoy? isuccessfu^

Maine, Arizona; and installation of

the final

Flyer Piggyback running between

Amarillo, Texas, to Winslow, Arizona,

ice for- piggybacking between Chicago .and' points

Ernest'S. Marsh
.

network between Kansas City and the

season

it is reflected in the economy of the
area

will

which

approximately 77 miles of track be¬

from

microwave

Flprida as, a second section- of,ouy- passdnger train?the
^lyer]: Because tins; train operates o,h "avpassengC^
/train schedule,7 we are able to offer unusually fast serv¬

perishable

for

Dixie

diesel locomotives,

wholly

to the C&EI itself.

Barring

tween Winslow and

important factor

Northern

traffic reversal

I '

haye> e^eriencect

trailers

well

piggyback business-continues toincrease,*md w®

Dixie

and

facilities at Argentine, Kansas, and

Co.

largely

agricultural production, weather is
in

automobiles

Chicago
a

piggyback facilities at Dallas; expansion of diesel shop

President, Northern Pacific Railway
Because

iOur-

each

offset

the

both

for

loadings

our

subsidiary,

in 1963.

million " '

33L5

expect to move approximately 35,000 carloads for Ford

automobile unloading facilities at Los Angeles; new

new

ROBERT S. MACFARLANE

and 100 new
piggyback traffic.
An additional 1,930 freight cars are on order, as well
as
31 baggage and mail cars and 24 new high-level
cars for El Capitan.
At the end of June, we had com¬
pleted the relaying of slightly more than 125 miles of
continuously welded rail in our 245-mile new rail pro¬
gram for 1963. Other items under way in Santa Fe's
$90 million capital expenditure program for 1963, which
is the second largest in the company's history, include

at faster speeds with better

cars

A prototype of

has been built and

owned

crop
of about 366
Changes in loadings

freight cars,

refrigerator

Chicago-St. Louis traffic for

our

production at Ford's Chicago Heights

Heights Terminal Transfer Railroad Company,

expanded.

Since the first of the year, Santa

new

Cer¬

ones.

laboratories, including

high capacity freight

ben

means

Ride-Master truck,

considerably

storage,

increases but " there were smaller
livestock, flotir, building" materials and

Chrysler

stamping plant has increased and this has contributed

showed

parts

growing

poor

Kansas, Oklahoma,

vegetables,

our

local

acceptance

that

greatly

300

public

products has improved

great extent. Chemicals,

loadings

Unifrate brake which adjusts braking power to freight

car

contributed

Increased

year's

commodities

auto

dedicated almost entirely to railroad

are

reduced

citrus,

Recent products from these laboratories include

search.

materially

have

carloadings.

petroleum products,

improve existing products and develop
tain of the company's

poration

Bendix

Chrysler,

this company. The

wheat production

1963

other

also provides higher yield.
.

been

Indiana,
Westinghouse,
Wilcox, and Whirlpool Cor¬

firms

con¬

fact

staying

total

year's

steel mill products would eliminate such now common

rolling mill steps, and certain surface conditioning.

the

million bushels.

graphite molds.

steel making steps as ingot casting, soaking pits,

for

sharply

the Evansville,

picture

situa¬

our

respects. For example, there is

General Electric, Babcock &

Such

area.

bushels, which is even less than last

patented

to the production of semi-finished

process

last

and

estimated

forcing molten

shapes by

from a sealed chamber into

is
has

Carloadings were

by about 1%.

accounted

was

result

which

fairly close

were

Texas, New Mexico and Colorado is.

of this year,

wilk install

1963

with operating revenues exceeding

1962

the five states of

Washington Steel, will have a unit in operation in Sep¬
tember

drop

wheat

The

installations.

from the first six months of last year. The

production

Corporation, two other licensees, also have announced

pouring

half

grain hauled, partly as

tinuing

Washington Steel Corporation and United States Steel
pressure

half

2.7%

entire

This brings the number of licensees to 10.

commercial

first

down

using the AMSTED process was placed in operation at
Eastern Stainless Steel Corporation.
-

for

first

earlier expectations,

licensed
Youngstown Sheet and Tube Company and Sharon Steel
Corporation to use AMSTED's Controlled Pressure Pour¬
ing process for the direct casting of semi-finished steel
quarter ended June 30, 1963, the company

mill shapes.

the

number of important de¬

are a

line which have helped

our

business

improved

growth.

Research continues to stimulate company

plans

tion in many

Railway System

railroads.

the

velopments along

President, The Aacheson, Topeka and Santa Fe

Thursday/August 15, 1963

organization, there

own

E. S. MARSH

page

Against this background of accomplishment within

plant with

watts

annually

industrial

Georgia Railroad,

steam

capacity- of 'almost two 'million

kiloJ

Milledgeville, Georgia,

power

on.

anticipated growth; in
consumption, and this is typical^ ^>f general
to

provide

for

projections of electrical power requirements.
Atlanta, at the center of the system-,
markable progress

one

;

continues its.

;/
re¬

of the most .rapidly growing

centers in the country, with

presently projected devel¬

opment running ihto"several hundred millions.

All indi¬

point to ah accelerated rate of expansion. /

cations

Through research and study, in cooperation with other

railroads, we are constantly making such changes in our
rate structure, equipment pool and service as are re¬
quired by
zation

shippers and receivers.

our

is not

fully with
means

industrial
location

our

patrons, but also is working very closely

afford

them

develop the most efficient

the services:they, require;—Our

department- is- not

for

Our sales organi¬

only selling our services and cooperating

with shippers and receivers to

new

seeking the right
but-is also

only

and expanding industries,

seeking the right industry for- each particular-location,
striving at all times to extol the benefits and advantages
of rail

transportation.- In fact, our whole organization.is

geared to customer satisfaction.
These

/"-v •;

V^-r -?/

railroads, chambers-of commerce, banking in¬

stitutions, local and state governments, as well as numer¬
ous

our

; ;

Georgia Power Company now has under constructiqn

private

have readily available complete
Who may be interested in the area

sources,

information for all

Number 6290

198

Volume

The Commercial and Financial

...

place to establish

place to live, a place to work, or a

business

the

Canada's Bank

locate an industrial plant.

(649)

Chronicle
past few weeks, i He empha¬

sized that the change was not
tended to signal a

Rate

McCORD

A.i KING

The

Pittsburgh, Pa.

Sales are cur¬

is encouraging.

The outlook for WABCO

Upped to 4%

will

V-k% since May 6, has

sion

rently running ahead of the same

been

incoming orders

immediately.

foreseen

railroads continues to

American

complete

and

to basic

railroads

upward

pressure

described

encourage

while

conditions
economic

helping

which
expan¬

maintain

The change

Hayden, Stone

CHICAGO, 111.—Everette B. Har¬
ris

has

resigned

president

the Chicago Mercantile

effective Nov. 1, and

Exchange,

will join the

Chicago office of Hayden, Stone &

the

Co.

Incorporated, 141 West Jack¬

son

Boulevard,

availability of credit in Can¬
to maintain

international

payments

effects

having

adverse

the balance of payments

of other countries.

director of com¬

modity operations. Mr. Harris has
been

without

position

developed in Ca¬

■f

just announced should not restrict

Canada's

securities-markets" during

nadian

credit

ada and it should help

interest

policy.

President

Mercantile

the

Exchange for the past ten years.
thereto

Prior
cago

served

Board of Trade

the

Chi¬

Secretary.

greater

enjoying

are

change, the

Bank

technical ;adjustment-re¬

rates which had

solutions
problems, it is obvious that
satisfactory

and

the

effective

monetary

international balance.

lated to the increased uncertainty

in¬

Despite delays in achieving

crease.

the

future

the

confidence

Our

announcing the

Governor

1962-

increased

$1.97 per share earned in

the

over

moting

announced

Canada

Bank's

Harris To Join

basic alteration

The Bank continues to aim at pro¬

Aug. 11 that the Bank Rate, which
had been

period last year and
continue to hold steady. Barring un¬
contingencies, we expect earnings to increase

Bank

the

Co.,

Air Brake

Westinghouse

President,

in¬

support from Congress and the gen¬

than they have for many-

eral public

This is based on a better un¬

years.

>v -

derstanding of the hardships and in¬
;

equities that have been-imposed by

•

«'

over-regulation and subsidized com¬
petition.
that

individual citizen and the

of the

the profit

growth and strength of the national economy.
Within
progress

the

year

•:*"T

*i*

McCord

system will eontnhuteudi^^^^

and rprofitable. transportation,
rectly

;•* •>

A. rKing

together with recognition
sound,, healthy, competitive
-

expect

see

PROFILE OF

substantial

in the following areas:

PROGRESS

provide an op¬

(1) Improved labor contracts that will

portunity for much more effective and economical use of
manpower.

permit much
competition in rate
making so that increased productivity, brought about
through better management and improved technology,
can be passed on to the shipper and the ultimate con¬
New laws and regulations that will

(2)

greater flexibility and more equitable

sumer.

utilization of transportation resources.

officials

Public

defense

mum

railroad managements

and

are

aware

present railway system is inadequate for mini¬

that the

requirements

to support future national

growth." For example, the number of freight

economic

The pent-up demand for new equip¬

past forty years.

wilderness into

plant and methods modernization, now offered

ment and

orous

by WABCO and other railroad suppliers, can be'satisfied
if limitations upon

The past century has
an

railroad management are relieved.

support, from

.Commission

should launch

ing at

fast

pace.

Co.

President, Chicago, Burlington & Quiney. Railroad
Net income
r

although total

crease

-For the period,

enal.

& Quincy Rail¬

of "the Chicago, Burlington

of 1963 registered an. in-

road" for'the first six - months

was

4
7*f

;

$7,836,922, while dur-

ing the same six months of 1962 it
$6,097^873. "Tax^tfenefits result-, l |
*ing from new guideline lives and/"
investment credits produced the ih- V*.;

Since 1950,

the West's

was

were

the

into

taken

not

last

until

account

'•

v."

$126,572,013 for this period of
and $128,543,639 for

last

clined

year.

the

$1,233,160,

and

•

California now is the most
populous state in the nation.

agev

tered
six
.

r":

the

year

were

for-

tained in the
house

meet

transportation

West will

ammunition and

Decreases

inhibted

cars

demands

our

from

outside suppliers.

rapid

shrinkage

sharp reductions in

the
car

other railroads, has made it

lington to obtain the
.

;

roads

•

car

cars

fleet,

car

caused

some

difficult for the Bur¬

it needs.

The fact that

rail-,

rent freight cars for only $2.88 per day, while
cost $12,000 and up, makes renting moreattrac-

result,

relatively fewer

cars

are

built,

remedy this grave situation,

and

the

bill has been introduced
Continued

increasingly

Union Pacific, auto¬
an

elec¬

telephone and data processing,

But the

repair by

including microwave, direct dial

national freight car fleet grows smaller each month. To

play

and

tive than building for-some strategically situated roads.
As

can

new cars

•

national

building and

page

are

industries

are

available and

being developed to keep

along with

new

and specialized

equipment, supervised by skilled

with expansion Also through
development of vast natural re¬

pace

the railroad has contrib¬

growing
If you
site

economy.

are

or a

looking for a

new plant

sound investment in the

future—look to the West, with its
unbounded

resources

lent markets,

and excel¬

and—for efficient,

dependable shipping service, be

specific, look to Union Pacific.

expanding

tronic communications system,

cars,

others

many

in which the

half.

matic traffic controls and

ability

during the first

leading builder of freight

cars

important role.

were sus¬

stepped up its building program in addition to buy¬
of

un-

constantly im¬

National Economy

Today,

shortages of freight

ing hundreds

and in-

dustries; followed- the rails and

handling of lumber, livestock and packing

The Burlington is a
has

products.

Severe

Murphy

•-

warder freight, coal and coke, cement,

explosives and petroleum products.

H. C.

■?

West; additional

uted substantially to the West's

meet the needs of

gains inp the first -

important

months

)

Union Pacific property

sources

ities to better

:Categories ; of traffic which regis-. i \

encouraged

been. q major factor in this devel-

proving its equipment and facil¬
serve industry and

';|

have

The-Union Pacific Railroad has

Union Pacific is

sites

attractive sites

ing communities and states.

de¬

passenger

dropped by $541,343.

revenues

than

settllbd territory into today's thriv¬

1963,

Freight 'revenues

West.;

aver-

period'

same

t
'

out the

speedcithe-evolution of the

quarter of •1962. X"'V;

Railway operating revenues were r,'

P " -

un-

relaxing travel service through-

40%—overtwicethenational

;:$()$>mi^

CcrEase. in net income. These credits "
;

provide

surpassed safe, comfortable and' ^

to settle in the

rv :
v <

r
■r'

A fleet of Domeliners

pop-

.ulation has increased

•v

operating revenues declined-.

Jiet:income

rail way.

Fully developed industrial plant
The

population growth throughi out the West has been phenom¬

MURPHY

personnel, all contribute toward
moving products swiftly, safely j
and efficiently—the automated I

out-paeed the national growth.
'

employees.

In fact, during

decade 9 out of 10 of the
West's industrial markets have

Interstate > .Commerce
decade of profitable prog¬

amazingly vig¬

the past

the

for railroads, suppliers, customers and

ress

vast

agricultural and industrial

and

empire—a growth that is continu-

'VI'Mheecl^ exi^^Yailrq^d1 management is enthu^a?tic,
the general .public is sympathetic
." a*!'green light, frqm.,,
Congress

the

seen

evolution of the West from

lower today than in the

and their total capacity are

cars

growth of the West
and the Union Pacific.'

proposed mergers permitting the more efficient al¬

location and

the

...

which will auth¬

(3) An improved regulatory climate
orize

UNION
PACIFIC

'I*

the

multi-level automobile

from page 25

Continued,
...

The Commercial and Financial Chronicle

(650)

/•

■

•

'V«,

container

■

1063). to direct the Interstate

(S.

Senate

•'•:

•

level of freight car rent¬
als necessairy to encourage a supply of cars adequate to
meet the needs of commerce and the national defense.
Commissiomto set

Commerce

heartily endorses this

The Burlington
its

tries for the remainder of the year,

bjll, and believes

first half

balance of; 1963.

American

public

t^ inherent

Burlington revenues

decide

trainloads

rates

reduced

ules,

carriers

investors.

discourage

the

and
»

and doing

they

can

provide,

petition",, bills,

prompt

transportation.^
'During the'past-five-years the rail-—

carriers the right to lower

their net

interaction
not

decade

again

earnings. Yet,
have

decreased

and

only

would be

operators

date

freight

this
at

cars

now

box

pacity/, cushion-type
this

transportation

program

highway trailers for
Nickel
with

the

Yard

Plate

with

cars

foot,

will

soon

Buffalo, N

Nickel

special

and

received

Gross

commence

Railroad

joint

328,000

racks.

business.

during the
and

net

new

look

forward

continued

President,

New

•

1963

•

aggre¬
or

cents

per

year.

improvement in the. months/

are

Central

Railroad

look

for

figure significantly

anticipate continued high output by the automobile
a
continuing strength in
industry

and

in-?/

sustain

some

Mergers

output,

spite

liquidation of inventories

encouraging

very

creased

that

six

preciation
using

;

months

for

the

period.

same

This

first

in loadings over

creases

industry,

ex-

steel during: tlie fourth. quarter, and

pared with-

good

prospects throughout most

crop

the

vast

region

served

railroad.
.

Good

•-

growing

conditions

net

ments

results,

/grain,

heavy

soybeans,

earlier

earnings pattern for

thle

and

summer

to offset operating

upon

the

and

year

the

set

full 12 months.

Through the exercise of strict budget controls and the
of

improved

methods

efficiencies

and

all,

departments, the Milwaukee has improved its net position

materially despite

prolonged work stoppage in

carloadings at approximately the year-earlier level.
popularity of innovations such

multilevel
and

rack

trucks

car

method

evident

piggyback and

handling

the

auto¬

new

Milwaukee's

these

1962,

are

expected to

levels of the second

con¬

mileage

for

1963

Alfred E. Perlman

large
in

centive

fourth

equipment, application of .in¬

and

subsequent heavier loadings per car.
Central is presently
employing a wide variety of
highly specialized marketing techniques.
These tech¬

niques have had particularly dramatic effect

car

was

over

setting

the

new

this

far

1962

records

upon

our

year,

down from

are

industry anticipates

expected

strike which did not occur, the steel

upturn in carloadings during the
quarter, with loadings for the full year in excess
an

1962.

tionally

efficiency

categories.

program

freight

car

in the most

repair

its

through the same

these cost

in; both of

leader
/•• •••/•••

the Chicago
$4 million
modernization program. Already one of the nation's most
modern rail lines, the carrier is purchasing eight new
diesel locomotives and acquiring 200 specially equipped,
In

line

this

with

Western

Great

damage-free

this

encouraging

year

To
some

first

hopper

jumbo

and bulkhead flats.

locomotive will

new

outlook,

embarked on

flatcars,

boxcars,

covered gondolas, cabooses

than compensate for

be made

cars,

Delivery

in August of

the unavoidable loss of

petroleum business, the Chicago Great Western is

increasing efforts to develop new business originating or
have

been

developed

Six industrial districts

its route, a move that already

paying handsome dividends through new

The

districts

are

and St. Joseph,
With

train

Missouri.

passenger

customers.
Fort

Roseport, Minn., Des Moines,

Dodge, Mason City and Oelwein, Iowa, St.

(Chicago

The Milwaukee Road is
currently engaged

comprehensive

being recorded in

were

76.73%

terminating on its own tracks.

anticipation of

of those for

significant gains

The transportation ratio also declined to
35.2%, down from 37.5% a year ago.; The system tradi¬

loadings of automobiles

increase

adversely affected during the third quarter by the
inventories which many steel users accumulated

should surpass last year's 31.5 billion
due to use of specialized
rates

continued

Although steel shipments from the mills

to be

ton

also

the

for volume.

sharp decline.
Revenue

period, when this type of traffic

half

when traffic experienced

period, multi-level rack

The

$8,430,503, up from $7,930,273

period of 1962.

same

trucks

was

portation increased-only modestly. The Chicago Great
Western was able to reduce its operating ratio to 72.31,%

year.

conventional—during the first six months.

and

gross

freight moved and income produced, the cost of trans¬

Quinn

potatoes

3-month

While
William J.

agricultural products during late

incurred

in the first half totaled

revenues

in 1962.

move¬

generally be depended

can

Operating

majqr importance in determining the

year's

of $878,739, equal

share after preferred dividends, com¬

restated net of $584,566, or 35 cents a share

year ago.

latest

■Z'/A,

are

implements

In the first six months of 1963, the Chicago

a common

of the

the

forecast

$16,313,997, compared with $15,582,639 a year ago.

the

$1.07

this year.

Central, carloadings

line

and perishables, not including fresh fruits and

and parts,

the

Reidy

gains
further in¬
1962. The increases will be led

lead the

half,

by metal ores, packing house products, autos,

and

exceed

E. T.

knowledge, coupled with highly satisfactory

the

tinuing increase in piggyback loadings—both Flexi-Van

are

higher in the last half of the year.

mobiles

light of these trends, New York

carloadings

Traditionally,

and

ated by the strike threat earlier this

an-

Omaha and Kansas City, the number

pected increase in the movement of

the

cre¬

system

Great Western reported a net income

automobile

The

„

1,500-mile

method

On the Chicago Great

optimistic

economy,

resulting / from;

charges

shorter/ guideline

the

chored by Chicago, the Twin Cities,

national

in¬

substantially better
this

The

/'..V.of(cars being Spaded through the first
Mi&„y-Seven/months is 4.9% ahead of the

continuing
earnings

1962.

over

traffic, lower operating and

Western,

first

Upper

transportation ratios and higher de¬

1962.

year

the

improved

vegetables.

the

held

developments will tend

steel

the
year,

encouraging outlook is based

of accounting.

operating results which the
last

will

/ West

markedly this

J. QUINN

during

carrier Jserving

Kansas ; City-based

Middle

effective competition with

first

five—earnings of the Chicago Great Western Rail¬

way,

the

two criteria—actual performance over the

months of 1963 and conservative estimates for the

seven

equipment during the second half of
These

REIDY

v.;A Railway Company

last

segment of the lumber industry and other factors which

creasing expenditures for plant and
1963.

continuing high level of production

adoption

construction

the

deficits

industry,
the

work stoppage in the

Chairman .and President, Chicago, Great; Western

Based

in any

the generally favorable out-

and other

PERLMAN

York

are

those for

view

of $66,-

revenues

economic outlook for the New York

Central Railroad.
We

WILLIAM

.Contributing
i

of /

period-last

of certain key industries

establishing

the

compared -with

than

fall

The levels

control

full year will be

the first six '.,

$4,524,000

was

$3,929,000

corresponding

•>,ALFRED

significance

realized

Road

prospects

two

decline

first half of

>/t.;,-V A v// -.A..

■/;

//-'-A AA

long-range
The C & O already has received

improvement in

1963,

Bison

the

Despite

income

net

income

during? the

ahead.

critical

plant, permit

waukee

Y. The $13 million electronic

share, compared with gross

and

will enable the railroads to provide customers with

The

"
E.

the

equal

on an

/.'/v.

■

Pacific Railroad Company

period.

same

revenues

per

compete

ca¬

operations

the

yard,- jointly-owned

Plate's

$65,764,000

$1.08

damage

in the Mil¬

factor

plus

freight

can¬

for

president, Chicago, Milwaukee, St. Paul and

240

in over-all carloadings during

during the

gated

can

V V

months of 1663, loaded trailers increased approximately
20%

whole until they

cushion-type unier-

1%%

anticipated

efficient and dependable service.

new-

additional^
in piggy-back service.1.

use

classification

Obviously, rails

advances

qf transportation and improve service to
rail-using industries. Approval of these proposed merg¬
ers

Piggy-back service continues to be the fastest growing
about

optimism,

free

the

upon

other mpdes

railroads, is expected to afford better service ta shippers.
part

those

approval to

100-ton ;capacity .covered

railroad

Erie-Lackawanna

East

freight

bears

cation of

underframes

the

year

old and time-consuming

Barring the damaging effect of

Nickel Plate and Wabash, will eliminate needless dupli¬

hopper-cars< and 34.60-foot box.cars with lGQrton
Early

industry, the Milwaukee Road views the year 1963 with

cost of more than $8 million. The orders

75 .4,000-cubic

frames;

approach to

proved

has

handling

waukee's relations with its customers.

govern-

Central ?(nd Pennsylvania and the Norfolk and Western,

——

enjoy.

been built

private enterprise.

industry assessment.
ICC

of the-tax-on

Nickel.Flate has ordered 484

year.

50-foot

375

cover

President's

••••

also

east

of the competitive opportunities; thatrtruckers

some

problem

new

system for the expeditious

new

simplified

greatly

claims. This

Congress

Government approval of balanced rail systems in the
year

partial step to equality by giving the rail-

and barge

the

Adoption

roacs

item—4he \repeal

one

fares—has been passed.

passenger

and

■

his transportation message
pointed out the necessity for prompt action,.

date

footing.

President Kennedy, in

ago

to Congress

88th

freight rates without

has

economy

economy as a
Myron B. Phipps

billion. 'Morq tb,an

fully

the past

railroads' annual freight

the

revenues

much

over

national

Our

roac's have invested in additions and

betterments: half

Milwaukee to pioneer

modes

other

the

before

processing system has enabled the

road's electronic data

when they are transporting bulk com/mpdities. 'Though tjruck and barge lines now enjoy this
freedom, railroads do not.

greater equality of treatment/..

with

pending

now-

approximately $5
part of a

totaling more than $20 million,

1963 improvement budget

-ment" approval

legislative relief is necessary to give
them

be established, however, until the "fair com-

can

automobile parts.

expenditures

Road

// In addition to performing the various time and cost
saving functions for which it was installed,; the rail¬

of key industries and

f.ijj- haye been resolved. S. 1061> and HR. 4700 would give all

railroads, and the benefits and econ¬
omies

This fore¬

year.

million for new locomotives and freight cars are

favorable

the railroad this

equipment being delivered to

includes

Milwaukee

truly accurate economic outlook for the total in¬

dustry

;

public wants

comparable period last

being rebuilt or equipped

arc

loading devices.

others, designed for the loading of

for the railroad in¬

frequent employment of contemporary market¬

!No

;

the

40%
.

based upon our evaluation

gondoia, refrigerator, and

turbo-charged diesel locomotives for
road haul and heavy switching service, as well as
number of insulated box cars, covered hopper cars, and

ing techniques by the nation's railroads.

regulations V

rail

cast is

New

year

con¬

freight tonnage.

than during the

facilities, faster sched¬

and

offset ^ the

and

'•

the

shackle

that

single receiver,

and, therefore, ultimately, to

We consider the economic outlook

proposed

and

cannot

laws

burdening

carload

with special

considerably .reduced costs to

dustry in the second half to be somewhat

equipment

consolidations,

offer

locomotives,

freight diesel

other types of freight

volumes in solid

'COal traffic historically represents about

our

needs

whether

Self-help by the railroads, as expressed by their new

better

gathering points to

repair program, the Milwaukee?

car

repowering

substantial number of

equipment

from

/-AAA A\.' ;v//AA/Ar A/'-A'A/AA

/,{/'/' /•'///

year

relief

substantial

from

receivers,

shippers,

and

advantage of rail makes it the most prac¬

have enabled us to

sumers.

this

Another important result of this;

cars.

In addition to this

tech-

specialized marketing

.Our coal shuttle trains, moving large

dynamic railroads.
services,

these

rental costs.

avail-•

immediately and at a cost considerably

new

will

program:

shops, the equipment is being made

own

shippers

below that of

Flexi-Van traffic increased by more

tical mode for the transportation of bulk coal.

St. Louis Railroad Co.)

must

able to

iques, Central has convinced the utility industry that

President, Nickel Plate Road

The

railroad's

carrier

the correspond¬

over

months.; By upgrading large numbers of 40"
box cars and other types of cars in the;

50-foot

and

Our multi-level traffic in the

26% increase

put 5,300 pieces of rolling
in the course of

designed/ to

history,

about

.•

V '■://■;'
with

Armed

(New York, Chicago &

'*■.

than 29%.

B. PHIPPS

MYRON

displayed

ing period of 1962.

'reasonably Tyell; for the
//A //-A//:// •//A-TziZ/z'/iA///

earnings should hold

and

AA' '

Thursday, August 15, 1963

stock in Class A or like-new condition

con¬

rise iu. the second half of this

Central is the nation's leading rail

New York

strike is averted
disruption of other basic indus¬

experience no

will bear important^

Outcome of the work rules issue

ly on operating results for the year.
and

their unparalleled

year.

services to

expect these

of assembled automobiles.

choose to rent the cars of others.

by railroads who now

tinue

A';'A:|A

entire

transport service and Flexi-Van

will encourage construction of freight cars

passage

operation.

revenues

Charles, 111.

almost out

the picture

Great Western operates only one passenger
day each way between the Twin Cities and

Omaha), the line is concentrating on increasing revenues

Volume

198 ;

Number

6290

The Commercial and Financial Chronicle

by handling products produced or destined, for use in the.
agricultural and industrial Middle West, where the econ¬
is solid.

omy

Its

carloadings reflect

that area—grains and
motor

line

handling

strength

grain products, lumber, metal ores,

farm

and

cars

FROM WASHINGTON

cross-section of

(651)

implements

these

basic

livestock.

and

where

products,

Ahead of the News

...

there

the economic board.

across

CARLISLE

1963

them

BARGERON

RICE

THOMAS

President, Atlantic
pleased

six months

„

such

that

Coast

great

ment

Railroad

Line

1963

adversities

Line's

Florida

the

first

the

principal

our

connecting

railroads.

Senator Scott added that he had

Gross revenues rose nearly 5%,
which, of course, is very encourag¬
ing, and along with the benefits of
.

the

show

The

nice

increase

attributable

increase

primarily

that the Southeast is
est

growing

coupled
of its

territory.

1963, because there

Coast Line.

certainly

thera is

Union

objectives, and

steadfast

its

re¬

designs

number

explanations are

being

And also on

why Russia has now been willing

and

for

advanced

But

United

examine

the

reason

the

road

this

States

the

security and

State,

sia,

did

now

evea

"coexist¬

road' which,

must

carefully'

light of its

that

this

Govern¬

its

It is strange that the
of

own

allies.

Secretary

returned from Rus¬

not

Khrushchev

government
second

Government

Soviet

respecting Europe.--

the

ence."

the

Soviet

discuss

With

Mr.

matter which is of

extreme interest in this country—
the withdrawal of Russian

armed

forces from Cuba.

At first blush, it seems

it did in its

rial

;

this agreement—

gentlemen's agree¬
the Eisen-

That agreement was

period.

summarily brushed aside when the
Russians

felt

terest.

their

was

in-,

.y;'f

;

Secretary of State Dean Rusk is
expected

now

discuss

—

not

definite

possibility of

work

However, while

of this threat, we confidently antici¬

negotiate — with Premier Khru¬
shchev Jand
Russian
Foreign
Minister

Britain's Lord Home,

steps

shackled.

disarmament

Dv J- RUSSELL

these

what further

and

to
of

looking

taken

may

■u

with

along

Gromyko,

the

now

three

significant

Soviet

non-aggression pact as long

mained

a;.', a

which

the treaty.

pate relief from the burdensome work rules with which

industry is

any

the

Communist

truth

be willing to

may

further

hower administration—for a mate¬

large freight traffic producing in¬

aware

there

W. Thomas Rice

and glass plants, distribution

stoppage in the railroad industry,
are

A.,. A"

ment not to test during

there

course,

A; ;:

with

ment will keep to

fertilizer

are

detect

these

the

step it

entirely likely the Soviet govern-

heavy

dustries which will go into operation before the end of
the year or have announced construction plans at sties
on

two

split
Chi¬

paper

warehouses and other

co-

Premier ing

long

Communist

third step.

We know that this growth pattern
will continue through the remainder

plants, wood yards,

How

fidelity

whether

:fr

according

lives up to

nation,

Line's

Coast

the

Russian

industrial development

peaceful

depends, in the first instance,

of the fast¬

the

that he had reservations regard-

and toward

war

fact

deviation

cold

is remains uncertain.

failed

first

from

Khrushchev.

net.

the

one

regions

with

emphasis

gross revenues

The

the

step toward the relaxation of the

guidelines depreciation, enabled

treaty.

called

been

existence,

ban

test

has

treaty

the longshore¬

freeze,

men's strike, and a prolonged work stoppage on one

nuclear

the

despite

higher than for 1962,

were

for

revenues

wide

nese—the

explanation,
The situation in Cuba overshadows

apparent

and the Red

back

early days

between Russia

powers.

test-baa

them

rejected. Among

was

the

in the

even

and

nuclear

offered

was

in 1958 and
of

The

agree

such

One

peace.

nonagression pact be¬

tween the members of NATO and

President, Southern Pacific Company

the members of the Warsaw Pact.

Widespread public attention and support has been given
important programs of the American railroad indus-

Khrushchev

Mr.

reported

try to gain greater competitive freedom under transpor¬
tation laws, to modernize

eliminate
•.

operating work rules, and to
duplication of

wasteful

facilities

through

and

mergers

=' efforts,

but equally / significant in
achieving greater transportation pro-

;

,;'A

duetivity

and

continuing

efficiency,

improvement

^ 'j

the

programs

of individual railroads.

;

over

r
■

$100

million

provements

this

capital

billion

dollars

the

ing

Donald J. Russell

For the
at

streamlining

upgrading physical facilities—while keep¬

traffic with less plant.

public, this

: '•

better prices.
For the

last year

"..A' 1

improved railroad service

means

■

railroad, first-half net earnings improved
represent

and

one

six

week^

Brotherhood

continuing

Railway

Clerks

$4 million in lost traffic

over

quarter.

tion and arbitration without

the

precaution

riers

strike
cost

threats

the

Pacific

settled by negotia¬

was

strike,

uncertainty

the

during the first

many

of putting their business

because

Southern

revenues

Although the dispute

shippers took
other

created

the

car¬

pro¬

results,

despite

traffic

from

loss

stemmed largely from the railroad's

the
con¬

tinuing modernization and research programs, including
diversified

non-rail

activities

trucking,

pipe

of railroad facility improvements includes

centralized

traffic

control

(which

trains and permits greater utilization of rail

lines), and

processing, and

automatic

car

classification

yards.

.Most of the 1963 investment, however, will be in

freight

cars

and

signed to meet
The
tons.

new

cars

Flatcars

highway

larger,

with

being built

boxcars up to 87 feet.
are

new

specifically

de¬

and changing shipper requirements.

are

equipment,

capacities

100

long

and

feet

Many of Southern Pacific's

cars

equipped with hydra-cushion underframes and load-

imperial

fatal
of

blow

for all

Our

car

research

and

investments

are

aimed

im-

hopes

East-Cen-

would betray our

suPP°rt

oft-repeated

ac-

deal

fervent

allies

tral Europe and

Such

clearly

the

silent

our

rule.

would

ceptance

fre?do™

peoples. The second aim

Soviet

pohcy

i^as

Here
new
'

how Coast Line helped Mohasco find two

locations in Dillon and Bennettsville, S. C.
•

How did Mohasco Industries, makers of Mohawk and Alexander
Smith carpeting, pick their two new South Carolina plant sites?
Largely, by relying on the professional skills of Coast Line's industrial developers.

Requirements included
a

yarn

page

acreage tract with a waste disposal
smaller site for a tufted carpet plant; a

Such neutralization would

reasonable

wage

rate; com-

munities friendly to industry; and convenient rail and highway
transportation.

How about you? Coast Line knows and serves the entire Southeast
Coastal 6. If your plant or warehouse belongs in this fast-growing
jeopardized region, we can spot the right location for you. All inquiries held in

position of West Ber-

were

i seriously

were

confidence.

recognized, either tacitly or
as

separate German

j)irecf inquiries to:

state.
"A third aim of Soviet

Atlantic

disintegration

the

Europe
NATO

R. P. Jobb, Assistant Vice President

Department

policy in

B-833

Coast Line

Railroad

Jacksonville, Florida

by undermining promising
toward European in¬

movements

tegration
of

the

and

front

line

the
of

weakening

NATO's

fensive shield through some
of

disagreement.

this aim would

ized

with

the

One

de¬

ATLANTIC

form

aspect

COAST LINE

certainly be real¬
neutralization

RAILROAD

West Germany. Without a strong,
and

free

Federal

Republic,

the rest of Western Europe

vulnerable

would

insistent

and
.

large
a

* ready supply of capable workers at

and if the Soviet Zone of Germany

Continned

plant;

surely result if the present

precarious
lin

stream for

^tamost0fsSsf—s°o1

stable

protection devices.

by ' Western

East-centrirEuroypeaAdsteteseto

speeds

further advances in communications systems, automatic
data

In my

of the permanent subjec-

explicitly,
extensions

First, the USSR has

acceptance

powers

lines and real estate rentals.
The range

government.

among others.

sought

most

favorable

strike threat,
such

has

NATO.

longed and widely-publicized threat.
The

-/•

Soviet policy in Europe
been motivated by three aims,

Soviet

best January-June

our

Soviet

over

periods. Freight traffic is moving in good volume—al¬

though

/V; V-';'

opinion,

firm control of expenses—our railroad is moving

'[■[ A;'

;-A;

explore the question of a non-

of the

be¬

result of this long-term program of
and

:fV"

•

aggression pact, is the motivation

ginning with 1954!,
services

over

decade

for careful scrutiny of

such pact before undertaking

"In the minds of many of us as

year—bringing the

equipment and facilities to

where

kyiow

Senator Scott wrote:.

im-

total of such expenditures for mod¬
ern

pact will lead us.

it.

'i. Southern Pacific itself is investing

reasons

any

.J'

favor¬

have been considerably less

want

pact

and
latter,

the

particularly

Germany

West

Senator
Hugh Scott, Pennsylvania Repub¬
lican, in a letter to President
Kennedy,'has set forth some of

the

are

bring about such

we,

France,

such

Less heralded than these national

—while

able.

■?i*.

v'; solidations.;;•'<
:;

con-

anxious to

perhaps

irresistible

pressures."

serving the Southeast Coastal 6

i»,]

(652)

Continued

from

The Commercial and Financial
Chronicle

page

legislation proposed by President
Kennedy is enacted by
Congress.
The removal of Federal

proving efficiency and attracting more business, by mak¬
ing it easier and less expensive for the shipper to move
his

goods.
often

per

By loading
take

can

into larger

of the

use

bigger freight

along with "incentive rates" to attract

cars,

business and

new

heavier loadings per car—has increased the 1
average Southern Pacific freight car load
by over six
encourage

tons since

1955.

Without

these

have needed

larger

loads,

pay

V'i.v.7

:• ■

the

railroad

average of about 1,800 more

rates

expedite

the

industry through
cies.

President

capability

Kennedy's

volume carriers.

transportation

proposals,

before

Such

important

freedom

field,

such

develop lower

prices

transportation,

would

stimulant to the economy
generally.

STUART T.
President, Norfolk
For

the

show

railroads

generally,

the

7 The
year in

that
an

the

national

unrealistic

1959

amination

some

factors

m ;

and

both

long term prospects

the

appears

tinue

into

level

heavy

users

world

1964

activity

steel

commercial

traffic.

high

automobile

manufacture

rise

The

favor of

ment js

Argentina in

the

this

result

imports is helping to increase.

been

reflect

the

regions

improved level of

economic

2CD

.„

serve.

the

continuing benefits of

the

progress

our

work

cars

cars to

covered

cars

have been

years

ago

that

the

rail-,

into present

would
in

benefit

both

car

fleets with

railroads

are

goods
an
•

economy as

whole,

Aside

and

from

corporate taxes
the

were

immediate

enacted

benefit

themselves, the expanded national output

and

services

which

follows

basic

1962

freight
is

car

industries

are

contribute to
expanded volume of traffic
throughout the industry.
show gains

gories such

year, the railroads should continue
in a number of
specialized traffic cate¬
piggyback and auto rack car

shipments.

The

growing use of containers,
particularly for
Shipments, will provide railroads traffic of
portance.

con-

The next 12

provements

overseas

months

should

rate-making

also

bring continued

practices,

The"

need

for

our

improving

efficiency

last

the

;

from

;

marketing effort was the '
Pullman-Standard FS-

now

took

merger proposals.

The railroads

right to fight for business lost to trucks
Given.the right to compete,
railroads;

■

restore the rail trans¬

Bill

with

urge

your

and

House

1061

artificially high .rates arid

4on

fair and

equal basis.

^ JOHN

y.;-

our

people working

Congressman to supportBill

of. the

4700.

These

obligation to charge^

wilb allow
-

«.

them
"

to
,

coftipete4
-

W. SMITH

Long
s

development.' Almost

every type of J :
industry can be .found in this area. ^
and <-*, all7 indications s;are
that thiis 7

7^. f;fK

highly desirable diversification. * of r
production facilities will also charac-';, t

developments.j

This region has much to offer, bus.

iness-and industry.^'No other section
oi- the^ courrtfy is* more

'abundantly;

endowed

Nowhere

with 7
can

electric

water

power

natural "resource's.

finer reservoir of in-

telligent, willing
•*

supply,
and

expanding

exceptionally

*7 pleasant living conditions add to the

inducements that

.'3^

manpower be found.

production, excellent

transportation

•

ard,

'•
John W. Smith

are"

now

has

been" replaced

car, and in recent months

\to

60-foot

lengths

with

the

50-foot,

have already

100-ton

seen

70-ton.
a trend

capacity trucks-'.'

In the special features
areas, improvements in box car
construction is
increasingly governed by load protection
"and
handling requirements. Low density
commodities

;

region that is attractive to .business,"the
Southeast has continued its
steady industrial expansion.
That growth has encompassed a wide
diversity of enter¬
prises, bringihg in turn a broad base for further-econoimic
proven as a

...

;;

healthy, aggressive industry.

.bills will free the railroads

Plentiful

*;"

7.:7"..

having,

improve products, keep, all

terize future

cars

means.

material-:

which

President, Seaboard Air Line Railroad Company

exploring

and several, experimental
container
service on the-rails. >
"

and

on ;

based. The whole
economy will
from having
freight moved

are

Senate

previously
*
7

are

was

We ask that you

and auto rack cars have
amount, of .traffic

>k.7.:j

rate
Paul S. Settle

if I.

some

this

and progress

of the

large

effort

war

money to

covered hopper
7car. is a good, example
development being carried on by the car-

(2)

or a merged system. The sooner
the rail¬
allowed to get back into, the
fight for business,
quicker the suppliers can look forward to

roads

car

by the railroads.

minimum

passed

proving more and more attractive
Even the workhorse of
the railroad fleet^the
box car
each year to managements
seeking opportunity-for-im¬
undergone radical changes in the
past few years. proving their
operations.
7
1 v
Where once the
'y-S
40-foot, 50-ton box car was the stand-7

im¬

particularly

receptive

single system

„

,..;

—has

growing im¬

highly

above

year.

plan .for

determining the

cars.

handling posts,

slightly

Many major railroads today cannot commit fot needed
improvements .until they know whether to

alone have

further

would

building

expected to

groups

Carbuilders, carriers and shippers, also
containerization" as'* a
way .to reduce

During the coming
to

the. most efficient

development of piggyback and auto
rack equip¬
ment and the
growth of this segment of
the market need

lost

the

felt business

products, for the railroads recognize
the

benefit

pro¬

satisfy customer demands.

result of this

already recaptured

substantially If "the proposed reductions

personal

Congress.
railrdads

the

wilLnper^tci profitably. a,nd

larger equipt

Piggyback

well

market »is

our

The railroads,

equip¬

SETTLE

waterways.
:a;gain

roads' fourth quarter: earnings this
year will have diffi-' i-not:be;'belabored. This form of
transportation, utilizing.
:culty in matching the strong
flat cars 89-feet in'
showing for the same period
last year when the
onerbf the .-greatest .>
first-benefits".of the new. depreciation 7, revenue boosters:
the .railroad
industry has experiencedruling and tax legislation were" effective.
since-World War II.
/*"."• " / ■ 77", :" ;
/

portation. system/to.
the-strong, reliable leveland

noted

specialized

historically have purchased equipment

through

and

-continue

must have the

by the railroads

In; this connection, it should

average

definite action

;

gen- ?

7, Railway Maintenance
Corp's. busi¬
ness is up for 1963.
and we expect it

Congress

builder to enable the
railroads to meet
shipper demands.
This car was once known
as a
cement car and carried
only 2,000 cubic feet of
long-standing
lading.'Today, it is ?equipped to •
work rules
controversy.
handle almost any
.'
;-.Jf.V
type of bulk product,
including food-I An acceleration of railroad mergers. found to be in
stuffs and chemicals.
Four, thousand cubic foot
the public interest would
capacity ^
enable the railroads to take ; is now
commonplace and the
industry already has some
-•quick advantage of the new
cars of 4,500 to
types of equipment and im¬
5,000 cubic feet of
capacity
with
more in
proved operating techniques
they have developed during
prospect.
*7 .«•>
f
7 ;
7
the past decade;
7
The
,

larger.' and

Until

legislation, and

Witji

purchased, the price

new

types of. freight

hopper

Further, the

lines and the 7% investment tax
credit, improved rate-^
making practices, and resolution of the

•

improving and earnings up,
advantage of the econobaiesf.

that. competitive-minded
new

of the product

merger

movement,
liberal depreciation
guide¬

railroads

meet

expectations, there are other factors, which point to
an.
improved climate of business for the railroad
industry.
include

•

carbuilders,

with a trough
loading hatch
running the full length of-the car's
top and center dis;-*
charge of cargo. This car meets the
specific needs at the
milling industry by the fact that it can
load'and unload:
grain in a fraction. of the time
required by the more
conventional box and covered
hopper -car.---^

These

small

outstanding
introduction ilate

activity in the

Even if the
economy's performance fails to

7v 7

•

bigger and specialized

increased

to taker

the national
economy

„

1960, is expected, to continue

for their customers.

conditions

recent years, at least
generally would follow the trend of

shippers needs, not in large
quan-7
lots of cars.
Although better utiliza- -

need for specialized,

mil¬

well

development costs.

President, "Railway .Maintenance
Corporation, >
-Pittsburgh, Pa.

conditions.
-John W. Scallan

being bought by the rail¬

industry to become market-oriented
tinue.' Pullnian-Standard
marketing

;

traffic, which increased

and

This trend of the
railroads and the

N&W export coal traffic.

Our merchandise
freight
lion tons
annually since

m ;

are

building obsolescence

viding the

Our domestic traffic both in coal and
general freight
is also expected to show
gains. Coal shipments to steam
generating plants alone should rise about 7% over
1962,
and should show a
two-year growth of more than 19%.

business

Since

veritable'r

spe¬

mainly in good profit years, the
supplier industry has
had to be flexible
enough to exist in "feast or famine"

;;

tag of those bought is'eater;-'"
Further, introduction of this

consumption of America's high quality
closing of high cost mines in Belgium in

American coal

haulage trade,

has meant that fewer

overseas

coals.

tities, but in
tion of the

Japan in the Far East, Italy, Germany and other

has been

the

carbuilding

equipped to build the

facilities

PAUL

depression

•

plant

research

improved equipment

and " equipment

These special
type cars
roads to meet specific

example, the Norfolk and Western expects its coal
year to show an increase of about 10% over

part of

30's,

for

;•

five

share of the

•

nations in Western
Europe and Brazil and
South America, will account for a sizable

the

into

today we:do not think
mechanized
•
primarily in terms of design- 7 through
maintenance.
rather in terms of
equipment.
■
\ -^V;
material-handling.
;
We do not have a
design in our
Our
industry could be looking
laboratories that won't
save the
shipper or the receiver money while
forward to the best period in his¬
enabling
our railroad
customers to reach out and
tory if two things occurred: (1) If
obtain a larger

exports this
1962.

since

plusses

ing products but

most

rising level
activity should also contribute to

and

con¬

the

the; rail-

their.;

levels

both

plus side,

pur¬

shippers, seeking" new m^ethods- to cut
distribution
costs, turned to the railroads and the
research and de-velopment laboratories of1 the
carbuilders, for new types
of special
cost-cutting cars. *y*
As a result, a
majority of Pullman-Standard's sales are
coming from products that didn't exist

im¬

of rail transport. And, barring unfore¬

developments,

•

the

orders

are not

new

their

cars.

inherent in. these

revolution taking place in the
shops of the

current

booked

has had

cars

carbuilders.

ment.

for

and
construction generally—all of which

increasing volume of rail
For

the

that

have

specialty

they should Continue

new

however, there

short

economy will
with a fairly

economic

production,

international

seen

that

now

the

particularly

areas,
Stuart T. Saunders

are

and

During this low point in
earnings,

able.

advance

years

favor¬

are

cars were

were

doubt

purchases suffered.

influencing the rail

industry shows that

cars

Pullman-Stand¬

We believe the demand for
speciaUzed cars will con¬
tinue, however, for the railroads already have indicated
by their purchases they are
willing to provide' this new

approximate

need

lowest

beyond

most

56,581

High- density
lighter weight ma¬

; cars.

use

cushioning, such

the

engineering and

equipment.: They;
are just now
emerging from a period;;
wherein
their" earnings "hit

economy,

the

should

There

roads

assessment of the outlook in
gen¬
terms.
At the same time, ex¬

portant

but

when

chased

eral
AM

eral

will approach

way

for

expenditures

longer

the

However, the trend has contributed to a
profit squeeze for
carbuilders, because the multiplicity
of new designs
hgs opened the need for added capital

and

Hydroframe-60, which gives shippers

shops, because they
cialty

1959.

1955, when 154,509 freight
ordered,

should

car-

minuses

railroads

7C-'■

;

wider

This transition to
and

SCALLAN

deliveries in the

building industry since

of the steady
though undramatic
gains registered during the past 12 to 18
months.
The
industry is sensitive to so many factors,
especially the

condition

/• 7

Thursday, August 15, 1963

necessitate

terials. Long travel

and efficien-

? j.7 .77 p

dependability and a damage-free way of getting
products to market, is becoming standard.

year

for oraers and

Railway Company
year

operating economics

higher,

ard's patented

con¬

railway equipment business that
railroads buy when
carloadings and ton-miles increase,
and with both
showing increases since last
Febrqary, in¬
dications are that 1963 "will
prove to be the best

coming

new

It has been true in the

continuation

applying

Pullman Incorporated

>.7-v

SAUNDERS

and Western

commodities

President, Pullman-Standard Division

Congress, would give greater freedom to reduce
prices to the public, and they should be
strongly sup¬
ported.

new

JOHN. W

now

•

bulk

cars

absolutely necessary for the railroads

to operate at maximum

and

toward

fj.\: 7\,.-

would

freight

available for loadings each
working day during 1962 to
same business.
This way, we achieve
greater
volume and more efficient
equipment utilization.
Our
customers enjoy lower rates.
are

trend

handle the

Lower rates

agricultural

commodities

cepts of rate structure to attract
high traffic volumes.
The year could prove historic
if it brings a reasonable
settlement of the railroad work
rules controversy. This
would open a new era of
competitive ability for the rail

advantage of volume rates.

Thisi combination—the

rail

would

the ship¬

cars,

dictate

regulation of mini¬

mum

growth of this area,

the Seaboard, has. within the.last

eighteen months made expenditures
totaling $32,000,000
for the purchase of new
rolling stock and locomotives.
All of this

equipment is

now

in service and has increased

Number 6290

198

Volume

The Commercial and Financial Chronicle

and

:y■ r

shippers

ability to supply modern transportation for
receivers in our territory.
,
.
.

our

• *

R. TIMKEN

President, Timken Roller Bearing Co.,

brief, the Seaboard has confidence in the prospects
expect to continue our efforts

(653)

Canton, Ohio
The

Transportation will be an

in its development.

nation's

railroads

modernization in

important element in the area's growth and we plan to
make our full contribution toward seeing that those re¬

the

for

seen

President,

: *

The

Bangor

prospect

STROUT

JEROME

projected

Aroostook Railroad

Company

depressed

from

recovery

The

with

the

first

quarter

the

ond

ins1963.to

handled

old

1963's

probably

the

1962 because of

winter with
feet.

dollars

16%

about

for the

"AP"

shipments in

the railroad's best customer. Pulpwood

1963

1962, which

Petroleum

adjustment.

1961 because of

from

was up

products,

duced

'of

on-line

by five

50.4%:

firm

Aroostook

and

1962

over

through

plants showed

carloadings.

first

the

half

foods

frozen

the

pro¬

The traffic

has held

with

signs of

1963

weakening.

New rates have been established for these

commodities

and 50

Less

rmain

carload

profitable

traffic.

total

Inc.,

full

the1

1962,

carrier

year

contrary

national

railroad

trucking

and

success

traffic

and

added

handled

The

the

Ginn,

125

boxcars with cushion

the

cars,

service.

the

was a

clear-

est

anticipate

modest

with

for

freight

gains

the

bearings

freight

car

than

of the total price
"AP"

for the first

half of

railroad

1964

importance

merce

and

industry.

equal treatment of all transportation modes by the

regulatory agencies.

ply

because

price,

cotton

company

American

textile

told

buyer

Cotton

sim¬

Congress

Kyser

said

the

—under
must pay

which

one-third

from

forcing

fibers

vides for making cotton available

include man-made fibers.
"

"Mills

Ga.,

are

for cot¬

ton
rate
as

with

nine

million

next,
'

"The

What

and

the

the year

year

lies

what

make cotton

alone

> —

price,"

Mr.

I hope

something is done soon."

•

the

eign

mills.

million

also

provides

annually

for

cotton

research.

7.5%.

Foreign Mills' Subsidized
Advantage-:

ing into consideration the added
costs

bagging, ties, waste and
other items in the use of cotton,
and the fact that under the

two-

widely copied, eliminated
con¬

Of the almost 1,000 cars built

the

in 1962,

capacity

average

were

ex¬

attracting

business for

new

approximately one-third of

products,

the ability to ship in

C."

equipment manufacturers has not been
As the needs

industry have grown, equipment manufacturers have
and more complex cars to haul an ever

new

this

produced

cars

steel.

other

the

trend

by Union

than

fact

tank

that

1962

special

come

transporting

traditionally

These

cars.
*
!

-i

cars
4

they

and

span
>

-i

liquid oxygeq or

in all sizes, with

attachments,

70%

over

are

products

petroleum

with railroad

Tank

porting

endless

made

are

have

cars

powdered

been

even

granular

developed for trans¬

commodities

large

quantities, thus further strengthening the railroads'

products.
The
the

com¬

fic

development of such "tailor-made" equipment by

equipment manufacturers has been

tor in

helping to put

back

health and

com¬

the

rails.

eight and

of cotton

pound

and

"Rayon

can

than

rayon.

ville Co. is 118

used

Planning

Mass.—Fourdee

ficers

are

Roland

Plan¬

Ralph

and

John

Derosier,

Stermer,

Howland

II, Clerk.

but

cotton

when it began the
in

some

blends.

Opens Inv. Co.
BRYN

MAWR,

Herzog, Jr.,

Ralph

Pa.

—

Ralph

Co., 429 Morris Ave.
Herzog,

Jr. is

sole

proprietor.

"We

are

going to

fibers

use
can

whatever
to

make

money," he said. "We want to use
cotton. If cotton is priced com¬
If it is

pricing

Granite¬

man-made fibers

cotton

ning Corp., 75 Federal Street. Of¬

old and had

years

anything

until this year,
use

that

man-made fibers

the

Fourdee
BOSTON,

Treasurer

out

use

situation.

machinery

pointed

never

beginning to
—because

President;

cotton," Mr. Kyser said.

most vital system of

our

be processed on the

manufacturing

same

pound. Thus, cotton costs

This, in turn, will bring greater

pound

approximately

rayon

mills

foreign

important fac¬

larger share of the nation's traf¬

the railroads.

half cents more

than

vigor to what is still

price system American mills must

petitively,

that tak¬

cars

petitive position in the field of cement, flour and similar

fiber

Mr. Kyser pointed out

competitive
ly to synthetics for. one reason and price-wise with nian-made fibers.
one i reason

mills

price it is available to for¬

after

■

answer

done to

about

you

textile

same

$10

consumption

of this cotton that

and I love?

after

"What will be the

that?

States

last year. "

next year

switching reluctant¬

United

the

Committee, and pro¬

American

of about eight million bales,

compared

bales

that

cotton

Cooley

Agriculture

mills

blends

Harold

this year the consumption of cot¬

mills to turn

use

Rep.

the

stainless steel and aluminum, as well as ordinary carbon

around 65%

intro¬

have

loss.

variety of

cents

was

The research and

Looking constantly to the future,

many

molten sulfur, ?. They

generally referred to as the Coo-

Co.

800 degree range for products such as

industry, had endorsed H.R. 6196,

system.

now

amounts

the difference in the cost of

(D.-N. C.), chairman of the House

the

cost

associated

duced

the decline

cotton

total

products

senting all segments of the cotton

two-price

as¬

when the cost of handling, shipping

age

pay,

last few years. You are aware that

mills'pay for it

many

traditional

man-made

seen

pound

re¬

Graniteville Co.,
American

"You have

consumption

Indicative

cars

should

ley Bill, designed to eliminate the

Cotton

the

this

It will enter service shortly.

per

two-price cotton system

ton thari foreign
—was

Augusta,

Belt.

throughout

espe¬

already constructed a 50,000 gallon car and have

United

industry, and- the
Council, repre¬

which

company

17,000 gallons, and some

pay

Cotton

needs.

design for railroad tank

cars.

Institute,

the

cently.
cotton buyer for

from

have

the

drastically

railroads to

said the American

sophisticated

designed

undeiframe and permitted the

transportation

textile

National

Kyser told the gathering of peo¬
ple

America's

rail¬

increasing variety of products.

for increased rev¬

organization of the

States

Foreign Price Subsidy

fibers

equally good.

Manufacturers

Textile

reluctantly from cotton to man-made fibers.

made

The speaker

Displace Cotton

Government's two-priced cotton system is said to force mills to turn

the

effectively,

they have received material

the

gallons.

profit and

and the outlook

year,

today's

for

limited to the development of larger cars.

through faster service at reduced costs has reas¬

trade

man

1963

industry's campaign

the

of 30,000

Research

of the car.

bearings

larger quantities often provides the difference between

with Timken bearings will be reduced to

Timken

cially

Car Co.

Tank

and distribution

25.3% of the cost of the

was

new,

larger

cess

the

early

freight

point,

compete

that

This design,

excess

railroads.

greatly their pro¬

new

developed

came

must

The large capacity cars are

made two reductions in

increase

ex¬

facilities

of what scientific research has done for

heavy

cars

from

1956 the figure was reduced to

serted

cotton

increased

has

latter

are

Union Tank Car

fully tested it.

itiis estimated that the cost of equipping

enue

switching from

In 1949 this cost

year

The

bulky,

bearings

freight

new

the cost of equipping

and

are

and

loss

highly specialized equipment that makes it

was

bearings.. This provided in¬

car

railroads

railroad reform in the area of restrictive rate regula¬
tion, adequate machinery for settlement of labor disputes

Textile mills

roller

Tapered

percentage

better than those in any

ing program and its efforts to open new overseas marThere is, however, a desperate need for national

costs.

roller

the

car.

This

,'kets.

Because of

helped

An important step in this direction

reduced.

industry continues its aggressive market¬

Man-Made Fibers

has

services

have

(Hot Dog)

by Union

(All Pur¬

single order from any railroad for converting exist¬

less

of the

industry.

the

speeds possible., Where used,

car

the

years

high degree of mechanical reliability.

ahead,

bearing

1962 the Timken Company

Sales

-Looking

the

expensive delays caused by hot boxes.

Over the years

head,

good example

Bearing

significant factor in

with Timken tapered roller bearings has been

road is able to guarantee its customers an adequate car

Maine potato

Roller

ing railroad freight cars to Timken "AP" hearings^

purchased

also

Our HD

•

the

ice, efficiency and savings to shippers.

predicted for

are

this yefir when the Timken Company received the larg¬

rental to other railroads. At the same time, the rail¬

•.

Timken

"AP"

The

maintenance

five

centive

service. By maintaining the car fleet to highest stand¬
ards it has also been able to realize a net return through

supply and have

The

15,

price for "AP" freight

pnderframes to protect lading
from impact in transit. The cars will be placed in paper

car

provide smoother rolling and cut starting resistance

gram.

has

•<

•

77%,^adding emphasis to the railroad industry's de¬

The

of The * railroad's 'r physital

railroad

•

the

possible for railroads to match their competition.in serv¬

termination to improve its competitive position.

picture. In addition, to 50 mechani¬

revenue

refrigerator

■

Aug.

Industry.

equipped

plant has been continued despite. only modest' gains in
the overall

is
to

development programs of such companies have produced

ma-,

remain. strong

second

business

equipment

honor

railroad.

cal

high-

revenue

by 88%.

substantially to the less carload

upgrading'

constant

new

much

should

tapered roller bearings is

firm,: completed

unique combination of truck and rail service
cut

king-size,

new

provide

The

prac¬

forced

are

sistance from railway suppliers such

J. W. Van Gorkom

struction

reduced

trends re-

Fox

rail-truck-less-carload

Special-purpose

rapid progress and modernization of the American

also

part of the Bangor and Aroostook's

common

-a

first

traffic,

the
cars

oper¬

antiquated,

railroads

new

this

area

Railroads have been able to realize sizable savings from

purchased to protect the growing traffic.

cars

customers.

specialization

it has eliminated

large mechanical refrigerator

new,

proving their value to

are

special-

make greater freight

sharp upsurge

activity

bearing at the Columbus, Ohio, railroad bearing

Railroad

traffic

year,

pose)

1962, remain at the same level.
Bangor

with

The increasing acceptance of Timken "AP"

inventory

significantly

are

plant.:

to show about the same volume as

expected

are

plants

the

and

roads

Company celebrated the production of its one-millionth

tenance of way budget.

Paper and its allied traffic rivals the potato industry
as

trend

This

main¬

car

industry by offering the customer reduced

the future.' *;

rail¬

the

tax

tempo

from

competing forms of transportation.

they

continuing increases in railroad traffic

million

dollar

million

The

investment

the

car-building

terial handling costs.

alone

costs

half

nearly

three

road's

guide¬

growth.

capacity

unusually severe

removal

Snow

amounted

W. Jerome Si rout

area

same

increased

which

panding

depreciation

the

cars

W. R. Timken

snowfall that exceeded

and

railroad

will

income

net

Liberalize!

type

stantially higher levels than in 1962.
However,

customers.

easily identi¬

are

high cost of

non-productive procedures and
maintain.

terminal

competitive

the

resulting

bustling

sub¬

ations

equipment,

offering

Railroad

quarter have boosted the volume

traffic

demanas

squeeze

One

de¬

reducing

cars,

and fleet

sec¬

fied.

rates

sustained late

and

points in the profit

pressure

freight

credit

domestic shipments through

can

tices

•

exports during

of potato

surge

special

The profit squeeze on the American railroad
industry
today threatens both the efficiency and stability of the
nation's most vital transportation facility. The two major

for

anticipating

approaching

purchasing

lines

guarded optimism.

GORKOM

lifting train speeds and the loads for

12 months

1964, but the railroad looks to the next

industry

rapidly

lays and

potato prices and national railroad labor difficulties
loom ominously on the Bangor and Aroostook's horizon
"for

plans

Significant increases in traffic

future.

•these

their

period that promises them the bright¬

est outlook in years.

quirements are adequately satisfied.

continuing

are

VAN

President, Union Tank Car Company, Chicago, III.

for the Southeast and we
for aiding

will

use

cotton.

not, we will use some other

fibers."

Certified Sees.
JACKSON, Miss.— Certified Se¬
curities

Corporation,

State Street.

Officers

Sr.,

Henson,

809
are

North

Aubrey*

President

and

Treasurer, and Leonard F. Kiker*
nouncements- by., a v number
of. Executive Vice - President and
mills" this year that they were Secretary*
Hn
He

called

attention

an¬

•

'v\|J;dij.

The Commercial and Financial Chronicle

(654)

sold

public utility
securities

ELY

OWEIV

million mortgage bonds

$15

finance

Construction pro¬

the

gram.

Capital

about

56%

heating

constructed

homes

the

rate

and

earnings

about

"flow

without

This

will

have

gained

two

large

although

through"

tax

accelerated

from

savings

annum

annum,

per

depre¬

ciation, the rate of growth will be
In the past decade, the

smaller.

in the

population
levei

around

expected

to the present

629,000

plant

the

past

and

the south¬
Jersey, in¬

operation in early 1967.

low

cost

served

The company

to¬

plants,

ings

City,

enton and

Cape

City Electric.

vious

is also installing

company

large units of its own,

the

140,000 kw unit at the new

Station having been
schedluled

unit

No¬

for

After allowing

retirement

units

old

some

with last

While the

by-product electric energy to du
Pont

under

contract,

25-year

utilizing 51,000 kw of the Deepwater

capacity

plant

12,500

and

resi¬

50%

in the past five

years,

it is still around $9 a ton

33c

about

million

per

btus.

high at

mills.

5.1

How¬

the company is studying new

ever,

dential, 27% commercial, and 15%
i

de¬

about

atively

about

are

coal has

Generating cost last year was rel¬

kw from Greenwich.

Revenues

cost

clined

methods

transporting fuel in¬

industrial, the remaining 8% re¬

cluding full trainloads and pipe¬

flecting sales to du Pont.

line deliveries.

business

area

27%

Resort

contributes

and

revenues

about

has

btu per

manufacturers

last year was

glass,

chemicals

frozen
,r

plastics,

china,

j canned,

and

Atlantic City Electric is
a

The

included
benefits
their

Interconnection.

investor-owned
in

this

pool

coordinated

efficient

most

utilities

enjoy

(Millions)

1962

$45

„

1961

ings

included

1959

„

1958

—

1957—

1956—

the credit for interest on construc¬

As
the

shown

each

year

pace

of the past decade,

1962 dividend

57% free of in¬

was

the

taxes.

equity

financing

early

Divs. Paid

;

1.20

1.10

Reynolds

New

York

New

York

Co.,

;

Stock

1.28

1.20

35-26

0.93

28-20

0.87

21-18

0.80

20-18

0.72

21-15

has

been

0.94

0.67

17-13

1953

0.87

0.59

13-11

1952—

0.77

0.55

—

12-

partner¬

1962

market¬
and

sales
o n,

started

his ^career

January,

positions

fields

company

1943,

holding

brand advertis¬

ing and promotion manager, and
head of the Copy Department.

Corp.,

was

McCann-Erickson
and

Vice-

Fill out the coupon below and we will send
you

of Benton and

complete

obligation.

1966

BLOOMINGTON,
Incorporated,

111. —Midstate
American
State

Building. Officers

are

com¬

expected
contrast

growth,rate
the

period

1958

high of

The

appar¬

should not be viewed
Reliability of

improvement,
stability,

our new

earn¬

coupled

with

still

are

projection

slight

some

means

reduction

companies projected.
"Several

the

show

rates

are

earnings

expected
their

improvement

while others which heretofore had

good records
down.

showing

to be slowing

seem

Shares of

companies

some

accelerating

growth

not appear to reflect this expected

in earnings, and it

improvement

is in this sector that investors may
be

well

ahead.

rewarded

the

years

rates

•

■

Bohlander,

Clar¬

President;

Roy M. Brown, Executive Vice-

Firm

President
—

and

Micheline

Brown,

Bohlander
A_» ---4

•

formerly

Treasurer,

and

lander & Co., Inc.

Brown
C.

re-r

of air condif

use

tioning last year, postponement o:
the sale of common stock in bnb
and

instance

the

inclusion

earnings of non-recurring incom
for another company, were

difficult to anticipate
the

projections

factor,

at the tim

made.

were

Co., initiated

"Bear, Stearns &

its program of using computers as
in

tool

security

analysis

last

Many Wall Street firms em¬

ploy these high speed devices for
office

back

step

operations.
is

however,

their

use

Our pro¬

pioneering

a
as

aid

puter's greatest value is
methods

usual

slide

rule

that

would

tre¬
by

only

calculator,

these

estimate

jections

done

employing

desk

saver.

detailed pro¬

require

two

three mandays of a qualified util¬

ity analyst's time per company—
a

total

possibly 200-250 man-

days or over a year's work.
program

the

duced

the

and

actual

IBM

Our

7094

re¬

calculation

only four minutes!
"Our

panded
items
one

technique
to

per

year,

been

ex¬

275 input

Previously,

company.

estimate

revenue

This

has
over

cover

was

made.

second method was

analyst

a range

possible future revenues from

which to choose.

Included in such

inputs are forward projections of
sales, capital expenditures, capital
requirement plans, etc., provided
in many

instances by the compa¬

nies, together with historical data.

Changes

growth

rates,

oper¬

ating ratios, depreciation rates,
normalization and flowthrough

accounting of the various tax in¬
centives are all accounted for."

Taylor, Rogers Branch
Tracy, Inc., 104 Fox Street. Theo¬

situations
"The

indicated.

are

slight

growth rate of

dore A. Brattin is registered rep¬

resentative in charge.

slowing

the

share earnings

per

be attributed in
reduced

improving

some measure

construction

plans

electric utilities with

cor¬

the

Opens Branch Office
BUFFALO, N. Y.—Hoover Invest¬
ment
ware

deceleration

responding
of

the

rate

base

Company,
Avenue.

Inc.,

2215

Dela¬

Loren J. Schieber

is Resident Manager.

upon

some

due to the fact that

companies have temporarily

reached

Taylor, Rogers Office

Deferment of construc¬

earnings.

tion plans is

point

which

have sufficient reserve

they

generating

CHAMPAIGN,
ers

Bank

111.—Taylor, Rog¬

Tracy, Inc., First National
Building. Donald Earle Rad-

cliffe is manager.

capacity.
"Plans to interconnect transmis¬

and sion lines of systems and eventu¬

Secretary. Mr.

officers

the

parts

Southwest, which

growth/ commensurate

abnormally

AURORA, 111.—Taylor, Rogers &

•

ence

to have future

with such multiples to

some

companies which sell

which do not appear

and

suited in heavy

high price earnings ratios but

can

;

* F

Areas for the switching of

funds from
at

67
84

[

such

added to give the

companies in¬

study

acceleration

'.lAVA:

weather

South

com¬

earnings growth for the

cluded in the

;

which these utilities produce their

Mid State Inc. Formed

Bank

low of 2%,

growth

Bowles, Inc.

mendous time

5.6%

6.5%

during

over-all

Vice-President and

International;

ap¬

Growth projected among

relative

joining Reynolds & Co.,

President, Secretary and director

N.Y.

information regarding our special trial subscription offer to

Name

advertis¬

ing,

Chairman of the marketing plans
board of McCann-Erickson, Inc.;

chronicle:

the Commercial and Financial Chronicle without

the

11%

6-10

pelling long term investment at¬

of to

with.that

Mr. Beach

actual security analysis. The com¬

rate

turq

ings

the Harvard Business School.

through

Percentage
of Companies

Y-/-

gram,

an average

annually

actual

ent'

experience

following graduation from

continued

public between March and

Detailing results of the current

earn¬

proximately 3%."

many years

these

President

NEW YORK 7,

Beach,

with The Procter and Gamble Co.

projections of 1962

growth

a^s

]

Variance

year.

ings varied from the actual results

and

distributed

was

:;'l:

rate. Our

fields,
Edward R. Beach

Prior to

The COMMERCIAL and FINANCIAL

25 PARK PLACE

the

promot i

such

FOR NEW SUBSCRIBERS

Mr.

ing

Special Trial Subscription Offer

ad¬

that

report

now

companies varies from

veteran

in 1932

year's projection,

follows:

has proved unusually accu¬

achieved

-•

pre¬

initial effort in this field last

our

year

the

Exchange,

39-29

also

can

City, members of the with alarm.

54-35

1.00

results

vious methods.

■'/ from

■

Broadway,

120

50-34

enables

findings to insti¬

our

months earlier than by

15% to

Address

Admits Beach

Range

13%

$1.36

thus

tutional clients at the end of July,
many

to 1962.

they

Reynolds & Co.

Approximate
% Incr.

develop

matter

pounded

;

firm.

1.57

minutes.

price

earnings of $1.90.

The company did

year.

company—to

1963

spent this

1.65

—

recent

ship

and balance sheet data—some 275

study, Mr. Allatta said:

last

actual

variance be¬

average

tween

warm

"This technique uses

make known

ex¬

effi¬

companies

46, the stock yields 3.2% and
sells at about 24 times estimated

V-A

"Factors

within

any

greater

consumers.

past and projected income account

made

$1.48

the past decade.

1.10

—

The

with earnings.

utility

and
from

may be offset by a corre¬
sponding reduction in rates to

country.

He added:

only

over

1.03

1954—

below,

increased

has

rate

with the

come

table

the

growth

electric
the

across

eral

major

8159 million

% Incr.

1.39

anticipated

compared
May of 1963 by
$1.36 paid last year. The

present

disclosed

commissions,

usage

their

improvement

Harvard

"We

dividend

keeping

who

allowed

the

level

ciency

computer technology to calculate
the

normalized.

Approximately $25 million will be

1962 and in March this year

the

tributes;

„

credit

tax

investment

The

tion.

earnings

"The

the findings at a news conference

mitted to gen¬

1955—

deferred

for

31c

normalized, and 24c for

taxes not

1960

specialist,

About $20 million was spent on
construction last year, and some

13%

$1.85

The 1962 share earn¬

10,900), and it Will

-Common Stock Record-

Earnings

9,400

load, thus reducing the average

some

generating

Revenues
Tears—

the

use

announced that Edward R. Beach

power

pool called the Pennsylvania-New
Jersey-Maryland

only

heat rate to 9,900.

im¬

huge

kwh (the system average

probably be used for about 40%

foods, etc.

portant member of

rate

heat

73%. Industrial customers include
of

The New England

unit will improve efficiency since

non-resort

to meet such

years

placements.

Earnings Projec¬

Philip J. Allatta, the company's

test, and ,a storm damage reserve
inputs per
been set up which proved
projections
adequate to absorb repairs and re¬

000.

steam and

process

four

respective

Compilation of panding

tions announced July 31 by Bear,
Stearns & Co., leading Wall Street

had

kw compared

year's peak load of 385,-

Electric Utilities

Company facilities had

strengthened over the pre¬

this year, total capac¬

ity is now 540,000

Deep Water Operating Company,

supplies water,

March, 1962, which

areas.

been

in January

A subsidiary,

Clayton.

average

despite the se¬

was

sort

lines, should be

of considerable benefit to Atlantic

the Second Annual

return

maximum

EHV transmission

for

Clem-

May,

per

caused considerable damage in re¬

vember next year.

Grove,

Penns

Paulsboro,

This

storm

vere

earnings

based

were

shares).

was

Margate

(or

Such is the major conclusion of

rate

have

companies

some
a

Club, said the
gain of 13% over projections employed an unusual
if last year's earn¬ and highly sophisticated use of

share, showing
1962

industry for the
1963 through 1966 is likely.

utility

made an excellent

1962

utilities

"Also,
reached

of investment banking firm.

of such customers to 3,335.

showing

years

number

the total

bringing

26%,

gain

693—a

were

gether with the advantages of the

second

Atlantic

are

mine-mouth

the

produced

electricity

in¬
The

completed last November, with a

Among the larger of the 377

communities

electricity.

itial

B. L. England

rich agricultural area and

along
transmission

project is scheduled for

lo¬

customers

Virginia,

The

first

the

along

areas

West

delivery

for

lines

plants

coal mines in Pennsyl¬

500,000-volt

some

rapidly growing industrial sec¬

tion.

vania

The

of New

resort

near

continuing.

one-third

coast,

this

and

years

The company serves

cluding

120%

investment about

growth is

750,000

The company has increased

1965.
its

ern

this

and

increase

in¬

has

area

about 28%

creased

construction

generating

cated

with

for

include

per

over

equipment

slowing down" of
share earnings growth in the

per

area

electric
heating.
To¬
interchange
of adopted
gether with conversions in exist¬
few "rapid growth" utilities in the power.
With other utilities it is
ing homes (about half this num¬
Middle Atlantic area.
In recent now embarking on a big program
total new electric heating
known as the Keystone Project. ber)
years kwh sales have gained at
Electric is one of the

Atlantic City

"modest

last public

and

of the 4,600 new

about 10%

year

Atlantic City Electric Company

is active in pro¬

electric

moting

Thursday, August 15, 1963

Rate Seen for Electric Utilities

30%

preferred

stock.
company

Slowing of Per Share Growth
Some

The

now

debt,

funded

stock and 14%

common

structure

ally the country as

were

make

less

Boh¬

nance

of large reserve

capacity.

necessary

whole will

the mainte¬

generating
\

Janney, Battles Office
DOVER, Del.—Janney, Battles &
E. W.

Clark, Inc., 26 The Green.

Lance E. Duchatel is manager.

Number 6290

198

Volume

The Commercial and Financial Chronicle

Trust

NEWS ABOUT
T> A \TTYQ

A\Tn

15 A IN iVO

New Branches

Manhat-

Chase

the

Controller of

tan Bank, New York.
.

Au«

York

New

irnhe'd

onlv

National

Fir«».

Thp

the

became

States

Bank

Citv

^000"!

bank

?teya
tellbranch
ate
full branch inS'witLriand
Switzerland
in

located at 100 Rue du

The branch

Rhone,

93rd

the banks

countries

Ellis

Vice-

Resident

Switzerland

President

operations
who

Bradford

and

organization

domestic

City's

five years he was

assigned to Ca-

and

Venezuela,

racas,

* * s

to $100,000,000,

for

1962. Manager

y; ]:.■

Revolv-

membe

Appointment
Graw

RobA^:chaihhOrlairi
Itobert B

3rd

JChamberlain
3rd
president
was

iormeriy

vice

dent and General Administrative

cagQ>

and

lcer*

dent

Company
nounced

ization

ment of Morgan

national

Tke

]y[unson

elected

Long

Trust

1958

and

an-

Kniher

m
Com-

of New York.

pany

/
*
election

*
of

The

Patterson

*„

Maynard

west

International

York,

was

James

Bank

Smith

Bush

President

Spnt
b p *

who

and

New

will

be-

Manager

Reserve

with

resources

Savings
Savings

proval

Certificate

Comtorn-

received

York,

New

pany,

Trust
lrust

Banks
KanKs

ap-

Amend-

Tte1
0f Aug.
Z08gnaioi1dtenB
cate
8, providing terrtihe
for the
on

following:

capital

UNCLAIMED

nreoontlv

the

increase

authorized

presently
from

stock

the

Bernard,
as-

;

total

than

t.n

,JL

J'' enecllve

ug'

P:\

provea

aDDiicati0n

National

vincentown

merge

vinCentown
tl

f
#

The Girard Trust Corn Exchange

Philadelphia,

Pa.

elected

hampton National Bank's state-

tional Bank

of that date

deposits of $6,548,851.

approved by the Boards of

Direct0rs

both

provide

Banks

Western

announced
xhe

the

f V

The

TdonH

stock

issuance

Ter,«

for

three

Tr,,at

Pittsburgh, Pa., has
plans

consolidate

Bank

System

directors

the

into

Community
'

The

both

the

annroved

NAMES

persons

been

consolidation

submitted

oeen

Mert0n Tynda11' President °f
The

Hawisburg

Bridgehampton

National

Bank. wil1 be named Vice-President

pany

and wiu be Manager of the

Long jsiand Trust Com-

Bay

Matson,

of Senior

title

Thomas J. But-

Credit Suisse), NEW YORK
NEW YORK 5, N. Y.

AGENCY,

entitled

unclaimed

William

fbp

app

Eichenberger,
James

Sny-

;

anDroVal

The

headed

group

Hazelwood

Bank

of $11,044,929

had total

of June

tho

Saxon Aug

the Comptroller ot the Currency

Western

Pennsylvania

Na-

tional Bank's total resources

were

as
#

Pierce, Fenner & Smith
Incorporated has agreed to under-

write the unsubscribed portion

the
of

rights
the

offering,

bank's

Fahmy

z5am?iek,FLeacaire.
outstanding
Juan

Jose Russo c/o

Aug.

elected

mrrpnnv

preliminarv

annroval

plication of

the

group

°"S

a new National Bank in Wisconsin,

at Brookfield, with
the' title
Brookfield National Bank, with
initial capitalization of $600,000.
*

Executive

°r after Aug, 16.

Vice

Presi-

^ ^ approval of the Texas State
Ba"klr?t Commissioner
Stockholders of record Aug 12

initial

subscription, however, are not

After giving effect to the two-

for-one stock split the 50% stock
Tvldend' ,„e s
'
shares f ?19 P« capital stock

and.f transfer from undivided

profds to certified surplus, the
bank s capltal wl11 be ^creased to

Township, Minn.

raintali7atinn

Law.

a list of the names

notice is
tion

Pine

y.,

the

contained

inPsuch The Comptroller of the Currency

file and
office

open to public inspecof the Agency, located at

street, in the city of New York,
where such abandoned property is

pasSch'abandoned

property

will

paid

James

Saxon,

Aug.

ap-

rvu

the

Massena

Banking

and

Aug

bank Wlll amount to $250,000, and
it will

4<.

nneratpd

under

the+iHe

James

Aug

Saxon

Df.

1 be 0Perated under the title
Valley National Bank of Eagan

the application of

TownQhin

d
.

ganize

approved

y dpp,

to or-

group

National

new

Colorado

Banks

lu"*

in
-

at Bouldcr wdh the

title, Crossroads National Bank of

with an initial capital-,

9arafs J. Saxon Aug. 5 announced nation of $500,000.
Preliminary approval of the apComDtroller of

the

Currencv

™ Comptroller ot the Currency

"ew National Bank in Oklahoma

tb^fDPyJa^bn0f ag„9aPPtro0^

plication of

a group

to organize

as b 0™'
At Oklahoma City, with the
title Founders National Bank of
an
$1,020,000.

ganize

National

new

,uh

„

d?f7«o

cnn

$7bZ,50U.

of the Currency

James J

preliminary approval

preliminary

approval

plication

in
.,«■

Ranb

^^^tmnaL^nk,

initial

James J. Saxon Aug. 9 announced

plication of

Bank

p..

rrn„,JA NaLn9i

the

ap-

group to organize a

National Bank in Florida.

Dixie

ap-

Nati0nal
.+u

me/ge County, with

the application

new

Saxon Aug. 5 announced

of
to

group

aPr'

the

organize

National Bank in Wyoming,

Bank
•

of : Dade

«ith an initial

Nationa1 Bank
capitalization

an initial capitaliza-

of $200,000.

^10n

vill.e, Berryville, Va., into

with the title, First National Bank

fornia,

of DeBary, with an initial

Galif., and President of Security

ers

Farm-

and Merchants National Bank,

Winchester,

Va.,'

effective

and at DeBary,

•

ization

after Aug. 16.

Trust

Company and the Watertown Na-

the First National Bank of Berry-

Proved the application to merge

thp

In Dade County, with the title, —at Dubois, with the title Dubois

made

•

en¬

? caiptalization of the new The Comptroller of the Currency

*
on

President

State
A

The

A.,

Bank,

Bank
San

Cali-

Calif.,

Turlock,

Francisco,

Au^- 8 announced that terms have

♦

been agreed upon for the merger

the

capital-

Urnnnn

$450,000.
*

Comptroller

Currency

The Comptroller of the Currency

of the two banks.

Subject to the

James
to

receive
in

the

before
ciaimed

the

same.

succeeding November and on or
tenth
day thereof,
such unproperty will be paid to Arthur

ive

ug.

f- Sa^on.on Aug- 13,an: James J- Saxon on Aug- 8 ap- approval °.f...supervis.ory authornounced

preliminary approval of

^be

the

Harold E. Rider has been elected

hTSSSilfthprini shal1 Chairman
■

Officer

and
the

Chief

Executive

Fairfield

County

appiications

organize a

Virginia,
title

•

new

I-

group
i

-r,

National Bank

to
•

Clarendon, with the

Fidelity

^J'500'?90 al?d the "Ftlf.lad sur"
James J. Saxon Aug 7 announced plua "'"
bf increased to the same
that he has given preliminary ip" am0"nt- The capital and certified
proval
to
organize
a
National ™rp'U' aCC0U"tS W1" then t0tal

new

The
Comptroller
of the Currency,
james j
Saxon

Beacon N. Y„ effective on

Argentina

report of unclaimed property has been
to the State Comptroller pursuant to

Senior

William

and

The Comptroller of the Currency

capitalization Of

Irving G. Rudd

^MattawM

have

f°r"one stock split; and increases
authorized capital from
$75(W0 to $1,125,000, and subject

organize

Oklahoma City, with

of June 29.

Vice-President,

,N a ? 1 V *

IN* *•> ana me iviaitawan Nattenal
iNauonai

Wagons Lits

I8u5enCo7Seas.
a

Egypt
'

checks

Saxon,

certain*

and

shareholders

Bank, Washington, D. C., has The Comptroller of the Currency ;The Comptroller

approved the application to Collins,
consolidate The Farmers & Manu- dent.

amounts due on deposits

Aecha

Merrill "

r?annniinpJ titled to receive this dividend/

The District of Columbia National
p

are entitled to the 50% stock dividend'
The shares offered for

•

;

Aug

' The The Comptroller of the Currency

the stockholders of both banks for

Bank.of Ronkon: $502,375,913

exnirp

subscribe to 30,000 shares of the

20' the resolution will permit an
increase in shares outstanding to
1,000,000 from the present 100,000,
and a chanSe in the par value to
^10 Per share from the current

Rights will

at 20 cents per right the rights to

supervisory

approval

for

has

proposal then will be submitted to

resources

President

Berger,

National

or°nwre.in amounts of twenty~^ive dollars James
Mrs.

75,000

22.

organization

Horace O. Wetmore.

supervisori T°Wnsh,P-

supmuted

koma, L. I., N. Y., died Aug. 8 at

The persons whose names and last known

the'r^ord^'^f6 the'above-^meti Cbanking

capital

present

issuance

agreed to sell to the underwriters

Bank in Eagan

ctenv

nronosed

Bank

the
(also known

the

dacker, Pressly L. Stevenson and

banks

that would be effected through an

Pnmnon^

National

Clarence

Island
Trust Company exchange of stock.
each share of stock of

Bridgehampton

ier>

Na-

Bankk
have

Pennsylvania

Hazelwood

WPNB,

The terms of the merger agreement

the

Vice-President

James

The

conferred

Comntrnller

1fi'

Bank,

of $7,393,625 and

and

•

posits of 5155,005,888. The Bridge-

resources

elected Christopher W. Wil-

°"

elected Walter H. Annenberg,
Director.

showed

Chi-

$100.

,As °f June 30f"W the Long
Island
Trust Company reported
resources of
$169,922,516 and de-

If approved at the meeting Aug.

t'he

Droved

29.
OF

shares and

son an Executive Vice-President Lynch,

ComDtroller of the currencv

Bank

notice

split

one

The American National Bank and new stock.
^rust Company of Chicago, 111., - Directors recommended to
i ^
announced Aug. 9 the action of stockholders a change in the capim
t
®oar^ °f Directors calling a tal stock of the bank from the
f 'r." ? 5
special Stockholders' Meeting to present 37,500 shares of $20 par
°
°Sff ' approve a resolution providing for value to 75,000 shares of $10 par
on or alter a io shares for one stock split.
value, thereby effecting a two-

the

Bridgehampton office.

DEPOSITS

St.

iJirectors ot ootn tsanKs provide nave approved me consolidation

National

First

„

ir*nri

$177,000,000

totaling

1'°J,0>00?-,^

banking

anticipated

over

deposits

System,
in

result

institution

and

•

Governors

Subject

stockholders of

o+Mo

_■

Presi-

Banks.

two

will

merger

(a)

Hainfeld,

Tyndall,

Banking Department and of

Board

f°r

The
ine

the

Federal

announced Aug. 14 by

come

Frederick

H, ment of condition

Director of North-

Merton

State

also

Dteectors

Company,
an-

„

the

both Banks and of the New York

was

was*

„f

Trust

to the approval of

Treasurer

,°°"fd fhp R^rd
of Mnrcln
Morgan rLnntv
Guaranty Irf
Trust

into

City, N. Y. has been

nounced

dents

0£ Corpus Christ!
Trust Company, Corpus

rvi_?mTP
r<?_
^ °Afl \ urrency,
ies
oaxon o n ^>.ug. 9 ap-

Bridge-

The

York,

Island

merge

New

and

ecut*ve Committee.
T

Jr.

the

since

Assistant

Garden

Assistant Secretary in

Bank,

hampton,

depart-

joined the bank in 1921.

Savings

Trustee.

plan

Mc-

division.

division

$50,000,000

Rolf Haugan,
Senior
VicePresident, at the Panbury office,
was elected an Executive VicePresident. He will continue as a
Director and member of the Ex-

has eiected Charles S.

Mr. McGraw has been in the in-

ternational

central

New York

Guaranty's inter-

banking

Mr. Mc-

credits

for

value of capital notes.

par

also designated head of

was

Certificate

hampton National Bank of Bridge-

was

Board.

the

commercial

the

York

New

provision in the Organ-

existing

by Henry C. Alexander,

Chairman of
Graw

Guaranty

Morgan

To eliminate the presently

(d)

V-.

Bank

total authorization of $300,000,000

Assistant Vice-Presi-

William

stockholders

of Hammond, Hammond, Ind., and share for each share of the
Mercantile National
Bank ; of present $20 par value stock held :
Hammond> Hammond, Ind., effec- on that date. The price of the new ;•
Uve on or after Aug 16, :
shares has been set at $26.75 a !
The

* y-:

the

Executive Committee

elected an Executive Vice-Presi-

!;■
*

Saint Bernard, Ohio, and the

Ralph C.

of the Geneva Branch is

Harpham.

Ge-

aftefr

on or

;

class of de-

a new

ing Capital Debentures having

named

was

Vice-President

in December,

neva

became

Manager in 1961.
Resident

for

Citizens

of • the

member

with First National

lumbia, S. CJ effective
Aug. 13.

on Aug. Eank and
6 announced its approval of the christi, Texas, at a
special meetacquisition of the assets of The ing Au'g io annroved a two-for-

elected Presi-

was

Executive Committee.

D-

authorized
ca_p
froth $55,000,000

joined First National City in 1952.
After serving

)

2^,000

bentures to be known

bank's

the

[

* Gordon Atkins,'formerly a
additional shares, half of which
shares of a par value of $100 Vice-President,
was
elected
a ™h ™rd Union Trust Com- t
be
a 50% stock dm_
each, to $87,500,000 consisting of Vice Chairman of the Board and pany' Cincinnati, Ohio.
dend and half to be soId through
125,000 shares of common stock of Chairman of the Trust Committee.
.*
*an offering of rights.
a par value of $100 each and 750,William A. Murphy, formerly ™e Comptroller °f the Currency
Stockholders of record Aug. 12
0°° shares of preferred stock of Executive Vice-President, was
d, Saxon on AuS- 9 ap~ have the right to subscribe to 37,a par value of $100 each;
named consultant to the Chair- provedtheappl.cationto consoli- 500 additional shares of $10 par :
(bl
increase the
He will continue 'as a date The Calumet National Bank stock on the basis of one new:
(b) To
lo increase
the nresentlv
prese
y man.
consisting

$2,500,000

overseas.

Heading
in

Geneva facility,

its

opened

capitalization

The.Board of Governors of the

Director, Chief Operating

Officer
'

Herman J. Wacker has been made

initial

Thomas F. Richardson, formerly Federal Reserve System

dent,

Revised Capitalizations

•

with

$1,200,000.

1932, had been Presi-

Vice-President,

New Officers, etc.

•

Stanford,: Conn,

dent since 1916-

ijillN JATjXvD

„

•

Company,

Rider, who has been with the

Bank since

P A "MTTITPQ

jAIN U

Consolidations

Mr.

(655)

National

Bank,

proved

rr,,

the
*

application

r»

to
i

merge
c?

Edisto Bank, Denmark, S. C.,

an<I ratification of the merger

agreement by the shareholders of

both banks.

Security

First National Bank of

wjB become

South Carolina of Columbia, Co-

of California,

T3orrb-

State Bank

part of The Bank

N. A.

The Commercial and Financial Chronicle

(656)

Management has

THE SECURITY I LIKE BEST...
.

Continued

from page 2

and

market

single

price

severe

competition in what had by then
become

standardized

His first

shelf" item.

diversification

this time with

toward

technical first,

economical

the

in 1955. War-

came

again scored

ner

"off

move

com-

clutch for auto aid conditioners.
Parlaying its technical
great auto year and excel-

ernization,
or installation
on
machinery already in use. This

small original equipment ma

are

million in 1954 to $12.7 million in

down

petition

into the

came

the

larger

accounts

OEM

sales

Brake

ranging in order from 10%
to

the

trailer

brake

repeat

experience,

other manufacturers

(1)

Computers

and

this year are good.
..

s^a 10 r!

ffrowinff

ranidlv

Pom-

one

yras a rapiaiy growing one.

com

^hrvsteTand mTst

Ford

manufacturer;
remain

appnnntind

1962

sales.

fnr

The

tr»

company

expects to improve its competitive

position

greatly

duction of

works

the

different

a
a

on
nn

than the

with

intro-

natented clutch which

usual disc

<ifjnificantiv

nrincinle
nrincinlp

clutch

chcannr

and

mannfap.

Warner sexperiences witnwneel

program:

ficafion into
and

by selling

applications

design
as

Electric

thl

brakes

functions

the corresponding parts of your

car:

brakes retard motion, clutches

connect

However,
with

disconnect:

they

much

ihotor.

these

things

speed,

preci-

greater

sion and flexibility.

They can,-for

example, start and stop the spindies of a magnetic tape transport
hundreds of times

thing

electric motor

by itself.
connecting

causes

and

safer,
less

stopping

it.

efficient

than

There

as a

machine

wear

of el«*tric

Jimited

disconnecting

thousands of such

try, and

could

useful whenever

are

part

faster,

some-

In fact, electric brakes

and clutches

motor

minute,

is
or

starting and
are

cases

literally
in indus-

result the application

brakes

and

clutches

by the imagination

of engineers than by the technical
—+i

t—i—

qualities of the devices themselves.

Reflecting

this

versatility

and

the redirection of
company policy,

half of sales

are now

concentrated

chinery.

___

1954

—

1962

Six months to June 30:

"to accexietibr^the-OE6D Conven-

list

customer
.

tion

aroardmtr

shareholders.

Total net assets-have

FundV

risen

jnn^

ioao

OECD, signed

does

the

renort

wran

onlyorran

the first

year of its

fiitiW'net'in-''

annuai basi»

annuai:Dasi^juture net in

come distributions should approx-

existence,ut also gives

4ft

chare"

caeser on Jhe cover

The FlUldS RepOTt
Commonwealth
that

nounces

Stock

Fund

an¬

since

to which

Japan

concerning

calls it "very satisfactory."

the

that

announces

june 30 net assets amounted to

accession of the Government of
Rendering unto Caesar, he
Japan to the Acts of the Organ- points proudly at the very outset
'zatl°": including the Codes of of the report to the record: value
liberalization of current invisible per share on the exchange date,
operations and of capital move-;-, a time when millions of investors

highly-regarded
p r o g r a m.
Applying
up

$453,624,794, or $16.08 a share,
This compares with • assets of
$367,482 481, or $13.21 a share,
year earlier. :
I
v
*
*
* AU-.U

™ents in Japan.had no enthusiasm for stocks, was Fund of America reports that at$19 ?9
aa^
total . net
assets the clfcse of the fiscal year on
amounted.,: to $47,3 million. By june 30 net assets totaled $4,877,- :

solely to those specifications af-

of talks which have been held the end of, 1962, covering a period 996. Value per share was $7.82, up
of enthusiasm for stocks by. large from the $6.36 shown a year earmined by local conditions. For- of interest in OECD membership numbers of veteran, professionals, iier.
/J-■
■eign manufacturing and licensing, on the part of the Government of J* pot |he general ^Ublic, Empire
*
*
*
L ^
mainly in Europe and Japan, con- -.Japan..The represeihtatives of
s^®^f*)J^tood at.;$2L10, Loomis^Sayles. Mutual Fund reinterfere with the ability to
duce most economically,

pro-

deter- following an informal:\expression

tributed 18% to net in .1962;
In

the

future,

Warner

will

fields.

heart of this patented

Government ofcJapan in order
to ascertain whether it was pre-:

solidify in

effect

which

works

device is

can

electric field.
like

turned

off.

and

nating
which

variable

current
may

speed,

revolutionize

^on^ue'reports^:.Jf.

Plenipo-

r
.

number of securities in the port-

J)ECD

-11

-ean substantial improvements

in'

maintenance, controllability, size,
weight and cost over comparable
DC systems.
DATA

—!

....

Per Share

Son.
After

essentially

un¬

changed."

Japan's
the

remain

095,018,
•

Cause of much glee around the

days

is the

timing

share,

Sales

set

last

Empire these

$8.07

earJier; V.f *
of

totaled

all-time

Bruce

year- ;

a y a

,, .

Wellington

month

to A.

Fund

$12,720,000 to

record, according

Brower, President of

of the sale of its 1''700 shares of Wellington Co., Inc., national dis-

ket
cas"alty after the dividend figure
was omitted.

current

particular

invisible

operations

and capital movements, the Coun¬

$0,016

0.20

0.016

583

0.88

0.016

873

1.30

0.064

356

0.53

0.064

9,774

d 215

d 0.32

0.048

2532

South

11,636

706

1.06

0.080

don

Nesbit

10,938

546

0.89

0.144

11,101

751

1.13

0.232

968

1.41

0.305

0.40*

™tonHotals'aaum"lertime.I?ar: tributor of the furid- The JulY

$0.22

0.32*

Council

134

0.87

the OECD Codes of liberalization

$150

0.79

Acts

Dividends

607

examination

Earnings

fund

position
within respect
to matters
dealt
with
the
OECD

■

OECD

Also eliminated

six months of

Member.

Instrument

New Blair Branch

Otis

TULSA, Okla.—Blair & Co., Inc.,
is

Court.

Gor-

representative

charge.

WICHITA
mercial

State

FALLS,

Corp.,

Over

Bank

the

Building. William A.

CORRECTION

In the quarterly investment

same

span

the comment

on page

18 under the

heading "Airlines Continue To Fly

I High", also in the section

Empire

com-

article published Aug. 8 in

table

the

same page

of the

pertaining

to "Airlines", the

ern and McGraw-Edison.

T'niT incorraec^ c"ed' Jhis

1
dime of each dollar of
,

Nearly

Square

Cannedy is resident manager.

were

added to holdings of Indiana Gen-

Texas—Com¬

Parker

and

There

Regis Paper and Walworth.

Opens Branch Office

shares)

holdings of Dun &
Zrr
Bradstreet; Martin - Marietta, St.
„

1963.

Harvard

(600).

higher than

General

were

(3,000

Elevator

reductions

during the first

1963

17%

was

earlier and 25% above June,

year

cil decided to invite Japan to be¬
come

officials,

transmission in heavy machinery,.
Deputy
particularly earthmoving equip- OECD,
ment.
Warner is close-mouthed and during its two-week
stav re- reductio».'to" the numtiei; of issues
about details, but if the prototype
viewed the positton of Japan wRh frt the Portfolio; the balance and
*
performs as expected, "i t wYl L reMrri" tn"thV~AMta of the'n'rran- industry
of;' the
classifications
of
J

-:^or the most part, the secu- Rowe Price New Horizons"reports!v~
by Mr. Charles W. Adair| rities sold were ^e small hold^ net assets at June 30 amounted to
Secretary-General of the ing.s whose inffu«nce .on the.port-^$8,601,725,
equal
to
$9.46
per1went to Tokyo, in June Toliq !was.;negligible;
Despite, the; share, compared with assets of $6,-

team

headed

year

9 to 14, 1963.
A

Chateau de'la^iyiuette, from May

unit:

compared with assets of $223,108,-u
there has been .421, equal to $10,66 a share, at the
substaniihP:^reduction in the . middle of 1962.

"In the past

tentiary, were held in Paris at the

-v

reports;'.
June .30 ^net assets were$251,942,700, or $12.94-:' a share, -

Haruki

Mori^v:Minister

Fund

-hargalfi1-b^s^ei4t;^-of ■^ course, hasthat-at

power

31> 1962. --

.,-•*

Preliminary ^discussions1 w i th
Japanese officials^headed .-by: Mr.

alter-

motor-drive

when assets toted-up to $S?.6 rml- July

assume

adhesive

The company also has under test

prototype

against assets pf:
or $14.20 >. a share at;i;

obligations of full ilon*
membership .in the OECD.

pared .to

unique organic fluid which tends^^
to

.vftth^. hefty ^ gaiiiv w^.^egi^red amounted to $106v57l,536, equalio. r

ases^^^e^^yer^ien^with m

the Stati-Grip Chuck, developed
in conjunction with Pure Oil. The

that at Juiy Signet assets A

marketing .-the

test

now

Members of. OECD .hajdmasked- -the
iSecretary-Geijeral,. on March 26,

branching out from its traditional

542

Report.

ttiosjfc recent studies indicate that-,

mg for umque reasons.Not

ment

7,488

adds:^

^ ^ d^if^her 3
^ap '"nd.
the^C|j«Km
her ,^its ^original
portfolio was acon June 21, 1962, through

Understanding

its potential is good.

7,049

*Annual

behalf

Memorandum of is right." Looking back over the Insurance Co.
are anfirst full year of operation, Em*
nothing to earnings, nexed statements by the Govern- pire President John F. Donahue, Fidelity Fund

1963

d Deficit.

has -increased
adjustment for the

instrument of accession with the quired

fa st e s t

Net

13,148

Article"

the Convention. After completing

equip-

second

1962__

1
L

after

fecting interchangeability and
The Council's invitation to the
performance, the program does not Government of Japan is the result

1960
1961

The

little

$6,548

1958.
1959

the

mate GCC now contributes less
than 3% to consolidated sales and

9,057

value

its April 30
manufacturer of miniature elec- Ambassador Extraordinary and television (RCA, Zenith, Magnatllc brakes anu
uj.
o
a p a u
m
vwv, luutuiuia
tr*c
and uiuiuies,
clutches, pceuisiun
precision irieiupuieiiuaiy
Plenipotentiary of
Japan
in vox,
Motorola anu
and muuicu
kindred wmcorn- semi-annual report it has added to
Potentiometers and other electro- France, and Mr. Thorkil Kristen- panies constitute 3% of the port- the portfolio American Can, Wilmechanical components. We esti- sen, Secretary - General of the folio), might well say: "The price son & Co. and Fireman's Fund

1956
1957

asset

capital-gain tax- paid by the fund

1955

net

says

fund

market (6) Aerospace. Government of the French Re- an exchange of its shares for
Ia December, 1961, Warner pur- public.
holdings deposited by investors
chased Guidance Controls Corp., a
His Excellency Toru Haguiwara, Empire people, who are fond of

Sales

1953

ment as an option. (5) Office ma- of

—($000 Omitted)—

share,

brief

the

over

less

25^

(Adjusted for Stock Splits)

■

the

net

Boston~bas©d*£-mpir

back

than

^SZt a largemanul--hciv^b^al.procedures,;us a prime opportunity.to look

FINANCIAL
■17

each

j.^

Barber-Greene-^M*?»w

+rv-wide slowdown could be offset

it has set
part standards

Basically,

same

behind

<4> Textile machinery. An mdus-;W* accarmiig^i^ Article, lb ot aoea tne repon: wrap up tne ysx

and

to this kind of program because of

great versatility.

Donahue

contribute

beefing^ up uthe

Looking

which is the prime concern, after

(3) Construe-'

mar-

and eRitches-lend themselves well

they perform

than 5

history of the Empire, President

size and

buy mutual funds;

^iversi-

engineering

the hardware.

counting for slightly

fund folk

mere

artistry

for!

asset

The Warner scientific management approach is demonstrated
differentiation also in foreign operations, where
first,

industrial

many

second,

of product

added

c°™Presso.r ciutcnes, though

two-point

the cover). Still,

flair

(3) Metal

factfer to °«er

important part of War-

nianc

;

in second place, ac-

are

buying

In this case, however, the market

their

few

equippers

tracti^ely adorned (Caesar's head

nothing

associated

POTTER

largely because

T 1

mid-

all, of-the-millions of people who

standardized.

kets,

rity.

sales:

company

thfe1nroduct1Ibecame
product became

ihn

only-

com¬

compressor

respects

some

tne

j.ure

good

Electric

quoted

turns

know only too well,

«Tk«»0 machmerj,.- Prospects for. '

30%

all,

Warner

Clutch,

small or as grandiosely named as cents. There's a little more
Empire Fund, Inc. (net assets 4 cents in food and a little
$53.6 million) and none less at- than that in chemicals.

including

reports

year

scores

OTC market, is my favorite secu-

est Rowing market.

was

n^r'c

ingredients

through

down 35% between 1956 and 1963.

was

the

growth,

necessary

JOSEPH

About Caesar and Empire

12 times reported earnings in the

with

space

business, forcing prices

Clutch

most

management,

industry cate-

all

FUNDS

foreseeable vol-

Wading

for

necessary

handled by the company's own

gory,

anticipated,

in sales

possessing

sales force. Following is the break-

jVarner upped its sales from $5.8
as

other

of production, and plant

crease

ac urers.
Sales

any

Thursday, August 15, 1963

MUTUAL

available

these

^ a(jeqUate for at least a 50% in-

which plso have the accounts o

down

Then,

easRy handle
ume

market is served through 75 independent distributors, some of

Jent general economic conditions,

i956.

exploit

split about equally between origi- ancj equivalents as of July totaled
na*. equipment and "Pj3™' m°u- $2.1 million. The IBM system can

pressor

lead,

properly

to it that

are

in the industrial products division, -technological developments. Cash

He clearly saw the
of dependence on a

presidency.
twin dangers

seen

and facilities

money

insurance

companies.

Office

"North¬

should have read

"Northeast

|he

both

references

the Empire investment is linked pertained
to

name

Northeast

not Northwest Airlines.

instances

Airlines

Number 6290

198

Volume

As We See It

Continued from page

(657)

Financial Chronicle

The Commercial and

even

people and spend
money

the

news

in tens of billions of revenues.

notion this

vendor

caveat

}

Our Reporter on

gathering

the endless and ex"And burdens of calculat¬
of
the
New
Deal, then tremely costly reporting to
ing and assessing taxes are
we had better introduce radi- the
tax collector who is ]ust part Qf the story Besldes
cal changes in it. In t ese- c a g
desioned to the IRS and State
and local
cunties
markets
alone the ministering laws designed to
authorities
there
are
the

JOHN T.

CHIPPENDALE, JR.

effort has cost the

wiiu
who

public huge be

a!f m<hwdua£

^ that

'vernment
agencies with

and

money,

die
are

^ ^

by it have, of course, do so—a maxim taken bodily
not escapea
not
escaped the
tne burden.
ouiueii. When
vvxieii from Adam Smith, ignoring

its

Thus

the

near-term

vast cost that must

it the

sivelv

that the Federal Government

rates

been made, a
mother, to all

curitiesf^^hat a.Tgrce—and c^The true cost of governhow^ouidk have been any- lnent runs far -beyond: $15tt
thing el$e.
ihlllipn a year. Many people,
^

after gathering figures and re-

All this lias been made the

by reason ceipts alL year long, worked
from a half a on into the night last Easter

burdensome

of the fact that

hundred other directions this

paternal government is arithmetical exercises, filling

same

there

Addressed, tp the chief execu-

questions

Three

■-;/*

these Pf

„

»A

--i c--

•

tvt

hps tried

r^ent -origin are^ /£f^priL

the manhours of
ports, to -say; nothing of the dismal drudgery | going into
audits require^ Jo satisfy the The . preparation
of tax retax collector/that-. Jlis direct turns.
The" rates of tax rise
the tax forms and re- to calculate,

•course,

been

have

tives

are

met.

But

plenty. of others and

And

progressively.

•

such

•

strain

any

event

—
i

v-1

■

ol the law.

„jn

y0Ur

which

feet .of-'the added
isince jah, i, isei?"

Franklin

capital

followed

discount

the

taxes

imposed by to that imposed

Board

Chairman

Ar-

mar¬

has

rate

modest

very

bid

regulation, have

some

while

come

under the

mean-

traders,

along

with

recent

and

•ernment.

Heaven knows what

often,

all

these

And
ago

regulatory require- sessed

are

adding

costing the country, has

some

there

was

decade

piled

upon

orms

all

out folly.

tax bite as-

customers.

The IRS

total staff of 64,000 and

budget

These

two

are

of
.big

$674

a
Rock-

climax

ness

firms collectively employ

.//'

calendar

corporate

light, there is likely to

rush
on

question

though it

there will be

get

bond

new

the market. There is

what the

but

bonds

will

right

priced

are

in these of¬

even

find

plenty of buyers since the funds

seeking investment
investments

the part of

long-term

still ample.

are

With Butcher & Sherrerd
LINGLESTOWN, Pa.—Butcher &

/; ■'
is

there

when

signifies

issues

remain

content

were

and see which

wait

the wind was

way

Timberidge, Fishing

Sherrerd,
Creek

meant that

—

sidelines

the

Valley

Road, R. D. No.

Cameron M. Geisel is Representa¬
tive

charge.

.7'-" .'

'•

■*

'V vT

?•

Bregman, .Cummings Brch.
LONG

BRANCH, N. J.—Bregman,

Cummings

Harbor

Co.,

Island

Spa. Herbert Zimmerman is resi¬
dent

did

rate

partner in charge.

some

of the stale

securities
to"

syndicates whose

priced too high
'start with. At that, the price
were

these

ferings. was

raised, aside from

was

to" work.- ;

thinkmg-

""gains! ttfrtSe'"banking
seventh

ville

banking

Centre."

office

Rock-

Street.; John

Manager.

...

Acmerge

—

Company,.
.

Inc.,

G:- Zullo

evidently no

Specialists in

question but what, there is a very
sizable

for. fixed

market

income

U.S. GOVERNMENT

when / they
This goes for

bearing / obligations

■

"priced

are

right.

Government bonds
Federal

well

they

over

Treasury was able to
more

new

raise much

than

money

was

pected, thereby helping its
cial

position

one

tions

that took

dive when

nose

raised. This

was

price

100, and for a time there
too

riot

much interest around

intermediate

However,
sion

bond

improve

orders.

the

was

the confu¬
the not

8c Co.
INCORPORATED

BROAD STREET

too

buyers was dis¬
obligation started
bit with not too

way

Aubrey G. Lanston

for

bond.

term

minds of

pelled, this 4%
much " in

some

the

long-term
to

was

obliga¬

bond went back to the issue

ex¬

finan¬

immeasurably,
Government

the

Certificates of Deposit

offered that the

first

were

•

when

well

Securities.

recently issued 4s of 1970,
went

and

federal agency

ones.

4s of 1970

which

as non-

Story Behind Price Rise of the

this

"Wlthln 3 w|ek Franklin will

Beaver

Waiting

were

situation to be put

There

Securities

minor .because

that
a

NEW; YORK,

security of-

new

very

funds

Acmerge Office

Central

the

when

result

not

Bank

the discount rate

(

But action' in recently approving

there is little doubt that busi-

the

offerings

great

that

buyers of all fixed income

bearing

The

■ ■

approval

million, board for'arbitrary and capricious

figures.

though

offerings

major change in monetary policy
/—which is what the higher dis¬

late '20's.

wlil helP document our

pay

con¬

pattern

temporary

v;.;

results

usually

County, hut throughout the

"The sentiments of bankers na-

ers

future

modest pick-up

any

place in

one

-i:;

just such

envelopes of work-

of the Federal Gov-

the

is not expected that

addition, the confusion which

the

according to formula and

inquis- of the

itive eye

ments

money

indicate

considerable

buyers of these investment secu¬
rities.

collectors, taking

con¬

public authority

ferings in the fall

been

pulling

absence of interest

for

employers. Banking Board capped the

great deal of the decline was at¬
tributable

ing, and declared: :
■ .
^
.^'Over-banking, not only in Nas-

governments.; The utff- Not only are there many more
over-banking in Nassau, the
f.
•
n
•
v
.
Rockville Centre case has national
lties, long a victim of irregu- forms but employers
must imp,ications; it merely marks the
lar and often quite trouble- serve as
uncompensated tax rallying point between reason and
»

being

was

seem

they have

current

corporates and tax-exempt bonds

decline

local
p

bit under the.

Corporate Calendar Light

increase

the

which took

sell-off

was

competition f

by government regulation and
The work imposed on in- seventh banking office in
reports and often quite un- dividuals is nothing compared ville Centre by the New York State
warranted

would

Even

prices of long-term Governments,

thur T. Roth confirmed the mail-

' While

the

price

interest rates.

pretty well made up. To be sure,

banking area since Jan.

' conditions in the

•

...

did it at

quite

Liquidation of long-term .bonds

the! effort

--.c

bond

the

investment

money

fidence

Adjusted

Markets

that

was

goin^ to blow.

does S3U

supplied

the

was

bonds

.•

demanded, i The
bw>ught about
Tully, as burdensome,-they are.- more a man earns^-and. the
,.Ba„kcrs everywhere are be.
The railroad industry is a more his time, is worth, .the bt.conij„g alarmed over the manclassic example of.an industry greater the. obligation imposed her. of.branches and .new.banks
that are being approved; they feel
being bled to death—it is not to amass detailed records ""■*
in a good condition to stand comprehend the complications'.-situation is remmisccnt of
there

for

group,

-1

The decline in the
ket

„

the

,•

Capital

asked, embracing fourteen multi;

long-term funds is again mak-

must.

are

Ple-choipe answers.

where

Government

commitment

ing purchases of capital issues a

"added competition" since Jan. (many
1961.

five
which

in the issue, by a

though

Central Bank rate

count rate

the

summated. The sizable transaction^

•

upped. However, the large supply
of

put the price of

right back

the

this

shown

even

invested

This

the

outstanding,

now

quotations prevailing at the time

of ijecu-

hesitation

some

used

been, although it is indicated

which

issue

tax-free

the way

powers

was

when the

o££:even i;he forms for/Federal (and 1,^1961? From what sources will
worse burdens of rePPTts-and perhaps
also :sjtate) .income the new -competition v obtain -its
regulation^The awof sU; of tax returns due the next dhy/^S1^SS?been th5/*f"
°

1970.

bonds

part of buyers of these securities

imposing //similar

the
had

money

market * has

bond

perative

governmentally prescribed

problem.

The

Aug. 12 revealed it has .iust mailed

«.

for

with similar

free world

other

considerable
r

exempt

will

time to retire

future

going

was

our

that

competitive

ments

forth some of these m01.e than 14 000 questionnaires
sort of grand- facts in its August issue. We to commercial banks in fifty
who bought se- quote: "
*;•*states.^;;/*;•
set

supposed, to

well

purposes

centers;.
This is supposed to be
helpful to our balance of. pay¬

impression that it was

seller had, so it was

Gov¬

dealers

given the naive rank and waY as

file the

funds

new

which

issue,

some

that

to reduce the burden
14,000 Questionnaires
°f this sort of barren labor,
their protector and that nothThe First National City On Branch Banking
ing
of
much
consequence Bank of New York in its alcould
happen to
them in ways excellent Monthly Eco- The:, Franklin National Bank,
these
circumstances,
The tiomic Letter has taken pains ^ran^tin Square, New York, _on
has

the

lar^e tax

bond

municipal bonds

continue to use

area

sudden

^he sale of
at

short-term rates will continue to

Franklin National Mails

of the rates, in such a

ness

remain

particularly the progressive-

fact

the

reason

tax system with such

any

its

refunding

high related fields now offer an
be borne bv those whose se- rates, so
steeply graduated excellent opportunity to begin
curities
are
to
be sold or must inevitably stimulate changing this very unfortutraded in the markets'of the every effort to find ways to nate state of affairs. The case
country,1 the-sum total is truly reduce the tax load and that, .of the; securities business is
staggering. If some enterpris-in a field so complex as the now /urgent since there is
ing
statistician
could and'determination of-profit and every indication that efforts
would undertake to make a income, innumerable rules and are presently to be made to
close estimate of the cost of regulations,
often anything make bad matters worse in
all this the rank and file, if it but / precise
at least until this department of business^
paid it any attention, would courts have ruled on them, are The great rank and file of
without question be shocked, inevitable. Yet in all the talk those
who feel themselves
Of course, excesses of various of tax reduction or tax change victims of the market ought
sorts developed in the securi- there is virtually no visible to
be the first to applaud
ties market the more exten- effort to change the system, suc
re orm.

the in¬
rate

ernment market to raise the bulk

^securities busings and

generally understood is that

agencies, and add

going to

ury

C!arnQ

reguSory

discount

all

got around that the proceeds from

3%%. It is evident that the Treas¬

business lhus lying beneath

the

crease

1 vim* beneath

Then

adjusting

rates which brought about

over

Lvimc the visible costs—set out in
we
consider
all the added meanwhile the other maxims
budeets DreDared at variwork tnat
that the
securities
laid down by
the same au- tne buagets prepared at van
work
tne secur
Ties buso
j
ous levels of government—is
mess itself must do in order thority
m the same place.
.
b
of invisible costs"
to
satisfy the
form-hungry What does not seem to be an iceberg ot invisible costs.
.

market

money

position to the higher interest

over-

jurisdictions

„

tected

The

rf.

those and enterprises pay taxes m
supposed
.
suppuacu to be pro- proportion to their ability to^
+q1™ KnrUiv
lapping

sums

purchase

NEW YORK
☆

CHICAGO

☆

BOSTON

The Commercial and, Financial Chronicle

(658)

The record in these two nations

Global Trail to Super

points

Transport Service
Continued from

tional networks—as if each region

p^age 3
one-time

lines'

the

Thus,

Can

arises:

railroads adjust to

yes

.and

to realize the full

rail form

potential in the

transportation.

unmatched

concentrate

ability

to
'

limited

and

space

fi Herein

lies

the

key

'streamlined service of
And this

nizing

(1)

where

areas

there

are

railroads

instance,

storm

carriers.

team

made

America.

transport

S.,

(3)

programs

ators,

Great

Britain,

found

for

$380

million

was

reducing

promoting their

and

seldom

industry

their

only when each is allowed to do

alone to

companied by

the job it

MThe

do best.

can

limitations

Ireland.

We found that trains ;

hardly got rolling out of Belfast
before
the

they

line.

With

the

end

Horse

moved

permanently.

JfIn Holland and
Switzerland, on
the other hand, railroad (service is
not

only

excellent

but

also

make money (if
gard the fact they pay

And

this

taxes).

lines

disre¬

you

continent

railroading swims in
ink!

the

where
of red

sea

Indja, where railroads
overwhelming load of

the

change

from

carry
eco¬

nomic

expansion, they, are
strangely among the most profit¬
in

the

Soviet

super-railroad

portions

and

Union,

Behind

lies vast

r a

trucks,
land

wanted

and

riers

o a d„s

States

taking

the

and

These .show

others.

West

ways

tax

comparing the

and

private

investors

For

-Europe,

United

example,

' found

that:
if*

European cities place first
rail transit in meet¬

one

edgeable

for the 1800s

Dr.

the

would

taxes

If U. S.

same

NOT

the

1948)!

But

the

their most knowl¬
told

trying to do business

Richard

Beeching, who
Imperial
Chemical

from

Industries in June of 1961 to head

the British Transport Commis¬

!has fallen

been

will

have

used

basis,

paying

ment $650 million

year.

lines

they

govern¬
.

this

His

bers

made

just

cutbacks

little-

of the

mile¬

handling but 10% -of the

traffic.

much

one-third

the

"halfway prehistoric" freight

car

fleet

will

have

Com¬

go.

mensurate cuts must also be made
in manpower.

Clearly,

a new po¬

is in the making.

Crossing the Irish Sea to Dub¬

lin,

found

another

well

transport

striking

ex¬

ownership

under

single

agement of

buses

barges.

and

—

man¬

rail system, trucks,
With

the

rail

growth

highway

hauling,

deficits

Eire

had

worsened

America,

can

the

railroads
freedom

government-

got

Europe

have

pany

compete

than

reshape

privately owned railroads

Transport

Com¬

almost free hand

the

transport

and offer services by

structure

rail, road

•

America.

water,

•

whichever best

suits

spe¬

•

Truck

freight

charges'"are

rarely controlled by governments
abroad.
;

•

Europe is much

ity,

however,

numbers

nies in:the

been

truck capac¬

regulating

well

restric¬

the

field.

trick
compa¬

European railroads have
shaped into integrated na¬

slack

de¬

times).

contrast,

once

permission to

gets

anywhere from

use

West
for

the

one

had

for-hire

miles)

hpme

from

Truckers denounce this

designed

giant government

railroad.

roaders

say

has

truckers

themselves

structive

against

other.

ing of all
could

rigid

rules

sharply

pared

light-traffic rural
ernized

the

now

down

areas

and mod¬

high-volume main¬

lines between major cities. Trucks
and

buses, in turn,

the

business where rails

up.

And

better,

service

are

has

picking
are

never

over-all costs

all

the

lion's

op¬

and

It handles

travel

massive

intercity
in

the

75%

between

90%

freight ./•volume

such

how¬

division

best i not

natural

carriers-;are

the

(com¬

used

S.).
in

Trucks

local

and

services

by
eco¬

choices,

put

buses
and

supplement long rail hauls.
effort

avoid

painstakingly

draw

the

U.;

S.,

agencies

over-all

programs.

myriad

plow

planners

transport investment

waste

Communist

resources,

Washington

tax

dollars

into

;works

glance

forms

with

the

scarcely

impact

transport.

lack

served

Looking

thought

Belgrade:

"Communists

terioration
the

chilling

consider

the

sure

sign of the coming collapse Of the
(-

West;"
Not

all

hand

means.

the

Kremlin

are

any

Deputy Railroad Minister

Vladimir

(Gavrilov

revealed

ing disputes

transport plans

over

the

top-level

system

Such argu¬

directly

Presidium. /But

got

cumbersome

special Cabinet-level Trans¬

was

set up

in early 1962 to bump heads
together and come up with com¬
mon

policies.

An idea for

Wash¬

While

America

and

other

ing with railway contraction, rail¬

Norway stands

road

expansion

out

this

re¬

In mid-1961, Oslo levied a
kilometer tax on all large trucks

the

newly

ample,

laid

down

track

tax

payments

build

thousands

of roads.

use

the tax

trucks
to the

precisely
Vehicle

own¬

for each kilometer driven,

pay

size

rate

and

offering

rising with

ve¬

weight.

Because

for-hire

services

general public meet obliga¬

tions not borne

truckers,

by do-it-yourself

higher tax schedule is

applied, to industry-owned trucks.

outlined
use

method

vided
which

trucks

using publicly

highways
build

their

the

nations

India, for
2,000

and

own

1950s,

and

hopes to
The

more.

new

badly

all

through

fumbled

the

transport

exist.

governments

Louis

ball

have
this

leader

told

Armand, secretary

general of the International Rail¬
Union (UIC), declared that
"by allowing the truck to escape

way

basic

many

thus

roadway

overextend

onto

(long-haul

government

costs

its

routes,

policies

present

have

made

commercial

and

rivals

out

carriers

two

political

naturally supplement each
and

and

operations

bitter

that

other

should be freinds."

any

word could

one

capsulize

problems
word

had

inland

around

the

change.

world, that

make

drastic

have

internal

changes to adapt plant and
ices

used

transport

Railroads

serv¬

the

snowballing external
changes brought by the 20th Cen¬
tury.
And
governments
must
carriers

greater

even

alternatives
into

The

either

are

railroads

privately owned—or
deficits

for

even

taxpayers

shoulder where railroads

licly

grim

collapse

bankrputcy where

remain

making

changes.

are

pub¬

owned.

This points

of the most

one

unusual

results

Railroad

problems

studies:

our

much

are

the

regardless of the system

ownership.

Government

nation¬

alization of once-private railroads
did

nothing to solve the problems

that

led

take-over.

effect, in fact,

The

major

to delay solu¬

was

tions for 10 to 20 years while the

public picked

foroperating
toward

mounting bill

deficits.

genuine

solutions

start

Eu¬

finally forced in recent

was

years

only when this burden be¬

came

unbearable.

Reasons for West European

Deficits

and

railroads

must

now

tracks

wps

their
cut

laid

were

born

and

where roads

port

job

rail

can

system

and

back—because
before

the

auto

places

many

handle the trans¬

effectively

oline prices of around 75 cents per
pay

only about

above

and

these

four

"If

revenues,

principal

were

going to build rail¬
today,

would do it far differently," stated

systems,

20%
are

over

due

Government-enforced
services

causes:

host

obli¬

of "so¬

below

cost

charges.
(2)

Bans against elimination of

uneconomic

lines

and

consolida¬

tions of unused stations and other

facilities.

(3) Political reluctance to allow
we

roads for the first time

P. Le

(1)

rail

about

than

Vert, director of the Inland

Official

been

European

average

cial"

overbuilt

Economic Commission for Europe,

revenues.

West

which

Europe and the U. S., conversely,

Transport Committee of the U. N.

studies disclosed that despite gas¬

towering operating deficits

gations to provide

they
pro¬

The

nations are still at the stage of
creating mainline networks. West

repair track out

gallon, trucks still

short

over

for

waterways

"Almost

ex¬

miles

Paris

to equalize cost conditions be¬

tween

policymakers
unusual

loads

cop¬

rails.
an

assemble

big

keynote

developing

buses, there by relating their

actual

about

the

of the Free World.

and

ers

unit vehicles that

are

both behind the Iron Curtain and

gard.

extremely

moved—and

mo¬

for

business.

the

low-cost

rope

ington?

maximum

traveler's

unit

transportation by train — or by
ship and barges where natural or

representing

allowed

hauls

same

bureaucrats

port Coordinating Commission

and

mass-pro¬

naturally handle smaller

movements

Moscow that there have been ris¬

compete

freedoin

most

can

greater

Transport problems

torized nations worry

shipper's

The truck and bus, on the

hand,

allow

de¬

transportation

Capitalist countries

Tito

this

other

coordination,

official

equal cost and regulatory basis and

the

transportation.

result

per

used

advantages

prices to the public; and the

other

highways, airports and river-andharbor

that

rail

low

-that

ments went for settlement

nomic pressures and user
once

compar¬

decisions

truck

torn

low.

cities

challenging think¬

but

past

result of hard-

passenger

this

about

come

French

The result: The railroad is

and

that

the different carriers.

encountered,

held

ever,

the

discussing

between

road. The most

railroads.

Kremlin

among

to divide trans¬

way

spheres

each
"

are

limitations

erations

de¬

from
~

similar

port

Rail¬

protected

competition

Experts in India

the

costs

in Paris.

pol¬

to' protect

would

low

.means

gets

This

basic

heavy-volume

duction

railroad

law

limiting

number

(30

for

present total of $14

•

operating beyond 50 kilo¬

meters

Russia,

carry

smooth-working

should

their

out

one,"

,•

trucks

icy

has

tightly

years

26,000

base.

vehicles.

Germany

outlays

doubled
a

spent

cific needs.

being

tive than the U. S.

thousand

one

Paradoxically,
owned

shipping

Trains

the least investment, the

our

hicle

'more

In the U. S.,

annually; nothing

certain goods over certain routes,

1958,

Then in

handle

these

trucker

the

completely.

art.

study group takes

stricts

with

Irish

fine

mands, (then gives out permits for
higher truck numbers
(or
re¬

that proposals were aired to bury

the

num¬

parts of

team.

port for

are

jtruck

extra transport capacity is

needed

; • There is far less regulation
of railroad rates and
fares abroad.

railroad

year

exception.

over

look at the economy, decides how

concept of diversi¬

intransportation

proved

lower

just the (na¬

cover

pared to 3 and 43%, respectively,

exercised

are

Each

up¬

have

Drastic

trackage; 50%

age

awesome

ideas

unveiled.

fication

almost

European railroads.
were

first in the

come

are

(they

e i*

part

executives

ample of the

There

London, "is that they're a Vic¬
torian-age relic — a system built

uproar,

; •

rest

carT*

"The trouble with British Rail¬

ing urban traffic problems, while

u n

Holland

There, controls

$2V2 billion in West

expansion funds.

ac¬

loud grinding and

govern¬

railroading yields the most trans¬

entity,

clashing of gears.

deficit-hounded White Elephant:

roads and autos

United States.

ownership

wanted

litical storm

emphasis

the

Labor Government in

dating job.

competing
airplanes and in¬

shipping.

vividly

Con¬

restore the

nationalized

were

Kqy

headed

are

application is generally

and .much

conditions,

businesses.

way

pro¬

varying fortunes

regulate,

buses,

rigidly

raise

demand

tbe

differences

ijr

charges in line with

servatives
of

these

governments

loose

and

other

sion,

2id.

their

market

Differences in Regulations

government

policies

Railways

came

awesome

performance

the making. '

r G
;
these drains

in the 1960s."

able anywhere.
.And

out

•

controlling prices to turning Brit-

ways,"

paid

was

over

forced

of .ish

of time

howls

finally

and •lower

hauls

matter

Iron

out to pasture

the

short

light loads, it's
before

come

$1.20

$1 taken in.

every

Public

,pse of railroads showed up most
clearly during our trip in North¬
ern

meaning

cit,
for

nation's

able

rationally planned for the

transport

poured out by Parliament in 1961
the railroad's defi¬

approaches

lagged far

government

than

billion

expan¬

retarding their expansion.
these

has

overseas

tion

air

to rails.

Because

domestic

out,

allow the truck and train, as well
as the barge and
airplane, to func¬

bring

point

as
are

erating deficits.

decade

operators,
thus raising their relative prices

many] players, which works well

cover

costs

selected

Taxing

favored

road, air and water facilities have

oper¬

their

aided.

America,; while

contrast,

selected

booster

Public develop¬

and

they

art

policies

these
prices,
the
more
freight volume would be attracted

;

(4)

full-blown

raging around the nation's
Some

and

sion.

for

instrument

prices in relation to competi¬

tors

roads

government

Policies

undeveloped

tionalized rail systems' annual op¬

are

policies

control

not

far

Government

great,

concerned,

big

been

Europe alone to

carriers

the

abroad.

behind

end-prod¬

railway
•

others

have

facilities

U. S. agencies).

thus

area

ment

type

ments pay out

the

Subsidizing

fascinating

some

transport

business trying to operate and (2)

and

The

annual

push favored carriers out

front

this

regulating

range

charged

major

and

sound

many

have

(the

all

specifics that hold further clues to

the

40%

purposes
can

Railroads

Commu¬

Controlling

wielded by

differences

and

(prices

impact

favored

effective

vehicle operations.

uct

forms

the

use

(2)

are

all

simple,

basic

field, the number of vehicles

they

future.

key, oddly, lies in recog¬

that

the

general

backed

the

our

the

are

interrela¬

of; investment

These

traffic volume,

(the

states),

into

going

covering

the answer.

Art

instead

Government spending for trans¬

"right of entry" of companies into

each.

for

hauling costs deeply when loaded

the

transport; -unlike

carriers

cut
-

-with heavy

lines

unit—of

weigh

investment

nist

conscious

most

maintenance costs.

facilities

buses

governments

tionship—the

This

movements

enormous

rail

when

European

sum

port

supplement rail service and ast

•

shippers and travelers by various

remarkable unanimity of opin¬

taxation,

decided

railroad

control measures, including these:

that

and

the

politically

truck

government

tal

trucks

(or

boost

grant

capacity by coordinating the capi¬

though strong

abandoned.

then

the
to

competition

Unwilling

unable)

Ml) Influencing the build-up of

lines have greater

use

substitutes

overseas

In fact, we've hardly begun

some.

lies

Adjust

Can

from

answer

emphatic

ion

supply and price of transport fa¬

instrument

European

freedom

Railroads

railroads,

60% of their, share of road repair

cilities to the

service demands

Thursday, August 15, 1963

costs.

single system.

transportation.

petitive era?

The

little

competition with other forms of

survive this tough new com¬

even

had

between

inevitably

question

the

There

monopoly on goods transport.
;

the

near-

governments

everywhere attempt to relate the

■

ever

how

Geneva.
How?

Mr.

Vert

and

experts around the world

other

express

reductions
when

necessary

(4)

ing

positions

even

rendered

un¬

by mechanization.

Failure to require compet¬

carriers

charges

for

air

and

personnel
are

spurring

pay

using
water

traffic

realistic
public

tax

roads

facilities, thus

diversion

from

Number 6290

Volume 198

W^cr-cost
solutions.
in

Only

Europe's

key

(659)

•

Conversely,

lies

move

policies

where

government

the most uncoordi-

were

V-A'W

WASHINGTON,

—

Keith

tral Trust Company,

;T-'V='c

Ohio;

the National Association

empower

Mass.'

greater
compete is insufficient

capabilities.

pricing

freedom to

But

in itself to remedy

over-all

com-

sibility for those Who deal with

achieve

securities laws

the public in the over-the-counter

equality of treatment of compet-

proposed by

market. It would

ing carriers by extending govern-

the

broker

not

others is

control

control—to

petitive imbalances: This measure- ment regulation and subsidies to
must
be
accompanied by other those carriers now free of these,
moves

placing all carriers on

equal

cost

railroads

granting
and

tions

the

necessary

services

ready covered.

changes

ticated

like;'America

economy

and customer demands

cal proposition.

world

the

around

nation is to get

this

the most out of railroading in

sophis-

dynamic

only the latter choice is

Experience

The

stantially

same

is true

jnforce
two
the principal

West Europe, in the opinion of

experts

hammering out

now

transport

mon

policies

com-

the

for

Common

re-

transportation and ultimately the

sweeping

light

lines

high-cost

traffic,

unneedea

and.

parallel routes and duplicate stations,

limbs

main

tree. '

V-

trunk

the

railroadingdown
and

stripping

shops,

and

yards

economy

Market.

the

transport

Otherwise,

whole will strangle

in red tape and

Eliminate

(1)

these

program
/

overblown reg-

ulatory bureaucracy.
^
This approach, by coincidence,
is squarely in line with Mr. Kennedy's call for new Washington
legislation..:. His message appeals
for (1) "equality of opportunity

A'r.for all forms of transportation and

•

their users and undue preference
necting transfer system to assem- to none" and (2) "greater reliance
ble traffic by road for long-haul on the forces of competition and
volume movement by rail, and to less reliance on the restraints of
deliver
rail
shipments door-to- regulation."
:
'
(2) Create

smoothly intercon-

simplest terms, America's
ing of truck trailers on flat cars transport problem is characterized
or
greater
use
of
transferable by too much of a good thing—too
door

meaning

freight containers.

programs

develop new

equip-

pricing methods and new

ment to attract travelers and

build

and

pers

into

ship-

efficiency

operations,

ment is

our govern-

doing little to deal with

this .central
bloated

issue.

spending

fact

its
only

programs

add to the surplus and make matters

airplanes,

cars,

barges, tracks. Sadly,

worse.

securities

'and

United

Hills

California

sound

««..

■

„

about what government itself can

to A

bring : about

SSXaSSf irs
reaiistic

study

set

groups

charges

for

usine

tax-

essential built facilities

changes in transportation. A dozen
expert

organiza-

Hamrrihhri

the

street Arnold T4 Hamnfnnd't

In addition.

would

provide

"new

enforcement

SEC- with

the

Exchange's

fnr

its

mpmhpr

c+anrqarao

™

S,.

."
tools" similar to those which the
bli
He stated that it would
Exchange, in its own areas of en- ir?e
.ina^" ™OU!d
forcement jurisdiction, has found
a„twitvth*
to be essentials
Exchange
.- In
testimony presented at' a
* •
hearing of the, Securities SubThe Exchange President also
Committee of the Senate Banking supported the SEC s request for
and
Currency
Committee, Mr. added flexibility in its authority
Funston noted that the Exchange to deal with persons who violate
has long advocated changes in the the securities laws. At present, he
securities laws- which would es- pointed out, the Commission cantablish standards of disclosure for not discipline an individual exall publicly-held companies.cept through action against his
,

■

nointed

listed

presently
their

LAS VEGAS, N e v.-Securities
ComPany °f Nevada, 1111 Las
Vegas Boulevard South. Carl L.
Ayres is

■■■*

situations

and

Principal.

over

Coordinate

transportation

Admisistration

can

their

base

ac-

\.;0l
Forms Franklin Co.

MALONE

Compan
Edward

prietor

all

and

programs

Arzouian
Ee

m"st

guilty.

^ OIUlll&tGd fOf

statements

companies', financial

Kennedv

law.
snecial

our

President
messaee

iSlctefour

Congress nas roundLv
Congress
roundiy_.inclictea our
"chaotic

patchwork
often

and

regulation."

inconsist-

legislation

The truth

that

kindly old Uncle Sam, sometimes
killing

the

golden transport
Europeans
railroads.

lays

bewildered
of

distinguished

pro-

fessor of transportation in London

summed

much

this

You

Americans

not only to be undermin-

appear

ing

tragic.

great

throwing

industry

away

but

great

•

for

all

transport

grams

self-supporting

•Remove

inequalities

+nv

the

equal

competitors. Gov-

actions that

discriminate

taking taxe.s from the various

allow

scale

down
to

carriers

long-term

regu-

Give

accelerated

Son
banks,

should
Federal

the

merger

fecting
same

reorganization of the national rail

listed

;

provide

services

of each mode.

these

any

lower-cost

transport, service

reach

out

toward

development

transport

physical

shape

prevent

people

service

survey

the

transport

but

political

the

billions.

from
the

getting

least

showed

running

warp

cost.

that

where•"

can

the

our

risk

chaos

for

choose
these

the

>
;

Award

^ YV <X1U.

^ outetanding

;

Go- 3418 South Grand: Ivan T.

Allen is sole nro-orietor.

^
^
'
LQ.
Gaeta
Opens
STATEN ISLAND

women

•

;Al'en Co. Formed

SPOKANE, Wash.—I. T. Allen,&

hands

the

not

belong

goals

and

for
to
or

course,

seeing
wasted

our

in
tax

—

foreAti^a^iw«iiV^itib,

St.

exchange,

Mr.

specific problems

lack

Paui,SMinnbe~

personnel

training. "There
jn

the

adequate

experience
are

and

several gaps

present

regulatory

structure that need to be
he

closed,"

certain

change

selected

from;

the

annual

National

among

the

instances," the Ex-

President

convention

Association

five

the

Bank-

Miami Beach, Fla., Oct. 20-24. •
Inaugurated last year as an an""al award, the NABW ScholarskiP Award is made to an association member who has attained the
highest scholastic record in the
required for both the
Standard and Graduate Certificates of the American Institute of
Banking, and whose integrity of
courses

character "and

declared.

«in

Recipient of the award will be

Women, to be held in Bal Harbour,
of

.standards of financial responsibil-

better,

lollapse

present

tional Bank of Wichita, Kansas.

question

noted,

"'boiler

shop' operators and financially ir-

efficiency

her

work entitle her to represent the
NABW and women in banking.
The scholarship

covers

tuition,

F orm

Mutual Fund

SPOKANE, Wash.
investors

has

offices

conduct

been

3315

formed
Bruce

securities

In v.

Mutual Fund

Arthur E. Birnel is
the

: ;

the

in a securities
business from offices at 13 Park-

larship Committee and assistant side Drive.
Vice-President of the Union NaV

should

unlisted."

Mrs. Mona Cunningham, Chairman Joseph is engaging
of the NABW Award and Scho-

nominees, and will be announced

wes .pusmess.

f s

The nominees, each of whom is a v P^P1011^ JosePn VPens
bank officer, were announced by GREAT NECK, N. Y.—Seymour

af-

banks

Spvmniir

requirements

whether the bank stocks are

8 S.

authori-

banking

regulating broker-dealers who do

un-

now

present

networks

lie, almost

potentials

to plod along

only

steps

imaginable
America.

Ex-

adminis-

(Securities Exit pertains to

rest

that

Turning

• Allow any form of transporta-

"The

the

ties," he said. "But it is absolutely
essential

movement to clear the way toward

railroad

network.

the

of
Act,

change)

contracts

official green light to

that

agrees

negotiate

freight traffic.

•

carriers, in granting aid to them,
and in controlling their prices or
not

y y,

,>y,"

° ™ttie ilations giraduate bank-

entitled to receive

are

information.

adequate
change

transportation pricing,

over

reduced-rate

surprisof

for

The Exchange ./President added
that shareowners of publicly-held
banks also

structure

DrasticaUy

lation

for

pos-

frant;r)nrt

tion

brand of

idea—that

treatment of all

Our

sible

and

pro-

the

ernment

best

development

Funston cited

CITY, Utah—Parker

Continental Bank Bldg.

other form to promote combina-

ingly simple

proxies

which presently exists.

ard

tion services of the best features

■

arker Co.

«m0Jca, doubfe

charges in order to make

histories abroad, the form-

sanity lies in

Transoortation)

against the backdrop

political alchemy but in

case

ula

national

asset."
As viewed

user

per-

plexed opinion when he declared:
"It

(possibly,

fair

treatment

0fflce

nenartment

eggs.

are

government's

that

goose

,jF

been nominated for
.
lC"ai voiunxamy,^ dui xne o c. . ecuUves haveAwnHatinnAf
Rank
N
Y
Leonstudy showed that a great many tne National Association, of Bank^
•
e p
i?epartm®nt ot Aranspprtationi
,
Funston urged end- Women Scholarship Award, which ard George Gaeta has opened ofS.h°U'd
fS0 hf!e the
stand- will enable one of them to attend ^es at 49 Ravenhurst Ave. to
lty for formulating and collecting ing ,tn®
onP 0f the natinn'«?
hankengage in a securities business:
Thlg

innocently, sometimes ignorantly,
is

obsolete

ent

♦

by independent public accountants MA RW

^ ToTuntolly buthhe'sEC's

years

with

^vsxg&rsez't

stituted, requiring certification of

:centralizing
.office;
a
Federal

?5Tea?f ofhLXStLbfnkouf
ot inequities

tiro-

formerlv

^ary'

„

ditional regulations have peen in^

stockholders' meetings. ^Some un-

Street

sole

between Affiliates, Inc., First National Bank

"choose

O...

solicitation

sswfssssKK'^' *<#***»

an<^

Franklin

West Main

Citing the effectiveness of the

SSSlSw

investment in

Y—-Thp

236

Permitting less serious violations Building. Officers are Hubert W.
to g0 ""Punished or invoking Woodruff, President; L. V. Dawoverly harsh penalties which af-' son, Vice-President and Treasfec* tbf innocent as well as the urer; and Harry C. Pirtle, Secre-

objectives."

further

government

•

mlssl0n

decisions

investment

own

•

„

exchange;

solicit proxies

"investors

companies

other'information

provide

^eVac*a

not

stockholders

which

required

stock

are

statements

that

financial

furnish

fjrm» n°r ^an
imPose sanctions
r
rctaf~ pL„n1
®k°r
revoking a broker-deal4
er s registration. Thus, the Com- PEORIA, 111. Estate Planning - &

out

Onens

c/vans Unpens

not

Evans

Thomas
Evans' ^r,» 220 Jefferson Street.
Mr' Evans was formerly with ,E.
F- Hutton & Co., Cruttenden, Podes*a & Miller and Bache & Co.

thmvlecnnictc

L
*

LAFAYETTE, La-

nr.

■,

the

iT
.

lif-

Arnold T- Hammond, is

proprietor*

and self-regulation."

from

trarpri

investing public has

reauirement<?

Exchange Act of 1934—disclosure

stated,

that

brieflv

He expressed the be-

pnfnrppmpnt

Keith Funston

Securities

areas.

benefited

..■■■■■

instruments of

insistently for Washington action

transportation

Orw»n«s

JA^KSON, Miss.—A. T. Hammond

bef

the past three decades have called

or
of

'
>

ny,

LAKE

Th.«

Rnvlflv

Rnnk

California

r orms

mmmk

National

thp

Funston

these

cordance with their own personal

...Washington can achieve

Invest heavily to automate i

(4)

trucks,

many

(3) Undertake bold railroad research

piggyback-

n.'y.

First

'Bank
Office
New
Rochelle*
Mrs Wilma L 'Pickert*

Wykagyl

all

Bank

Westchester

registered

authority

Woburn

S' Kindred
"Hamilton*

history of Exchange regulations in

would sub-

al-

areas:

Citizens

Flowers

Bank

tion.

consideration

practi-

lowed to carry out a

major

appropriate

meas-

Space Age, railroads must be

organization

also require

self-regulatory

under

ure

highly

technology, competitive conditions

indicates that if

dealers

National

Cincinnati,

Ohio; Miss Mariorie Peyser

with the SEC and to accept the

[
•

Mr. Funston
said the

are/^

tapitco

adapt plant, opera-

flexibility to

Securities
and Exchange
Commission.

by withdrawing regulation and

and subsidies from those carriers al-

basis

and' tax

the

Federal

America and

Marie

Mrs. Margaret

^he

their volume-

Miss

Woburn

nated and unequal in their impact,

Funston, President of the New of Securities Dealers to establish
restrictions
over
railroad
rate- transport was in the worst shape. York Stock Exchange, has urged minimum standards of
training,
making, thus permitting the lines
The choice of solutions before Congress to enact amendments to experience and financial responto make the most of

NABW Scholarship Award

Securities Exchange Act

port systems and services resulted.

loosening

drastic

M FUllStOll UrgeS Strengthening

listing of causes suggests

The Commercial and Financial Chronicle

competitors.

Key Solutions
Such

with

Ave.1 to
business.

principal of

firm;

^
KTRKT

ANn

Investors
w

wasn.

iwthxW

i\oimwtqsc

}nvestors services has
Wl1?
Norineasi ooxn
xo ^engage in
a securities business. Lee Shoemaker is a principal of the fir^t.
\t

/Now btewart

Uisen

LOS ANGELES. Calif.—The firm
name

ments,

of Lambuth & Co.

Inc.,

600

South

Invest-

Grand

responsible people have been able
deai wRh the investing pub-

room and board while the recipient is attending a national, re-

Ave., has been changed to Ste-\<v-

lie,"

gional,

maintains

The proposed legislation would

state graduate school of

banking of her choice.

art-Olsen

Phoenix.

&
a

Co.,

Inc.

branch

The
office

firm
in

The Commercial and Financial Chronicle

(660)

*36

must leave all this behind
must show, a feel for the
of

the

situation
the

between

to form.

balance

for

must not give

of domestic

com•

other

Also,

well concede

may

members

this would be just

the

that

sug-

vpmrirp

grasp the basic

radi-

segment of the negotiations.

S
.

Other Countries

little has

been said is that

inclusion

yet-

ori ies
>nersin;adva

^ ^

fhkt

the

'deadlock."^Our negotiations in these

most-favored-nation

rule.

benefits

are

negotiate

matically

extended

countries.

If it

cut

'on

modifies

EEC

the

and

I960.. Our

leader

all

order

other

countries? ;

GATT

V/hat about Japan, Canada, Australia, Britain's EFTA partners in
Europe, and some of the less de-

edge.;

advanced and debated.

taken

there

way

and

liberally?

afford to trade

can

not

mean

just

the

And

western

siips

many.

their

realistic

arrangements
from

the

aberra-

for

the

realism,

ternal

they

Prices

con-

tati'oii

commodity

reforms

supply

posal,

benefits

.of

the

agriculture

Kennedy-

round for

will
a

prevent such

countries

terested

•

getting

preferential

Nevertheless, if'■yvill most

certainly

impossible

make

too confident of .satisfactory publicly recognized by the Secrets in this respect.
^ary 0£ Agriculture, will also have

resu

in-

barriers

EEC

down to reduce their

effect.

of those

some

particularly

are

attitude

large scale. And

the

arity," "equality of cut,"

►

other

exporting

make

countries seemed at times inclined

its

the EEC
able

to be set at

were

reason-

levels—say, -half-way
the

prices—their

■

parity the EEC and the United -terests would appear taken
States: (and Britain)- would -be of, and they would, in that

willing to
have their

agree-upon//They^ will,
own

ideas about what

contribution, in terms

agricultural policy,

own

reasonable world system.

must,

be-

course,

There

thorough

discussion of other countries'ideas

high German and the

"dis-.-lower—French

hand,

that, if producer prices in

say

them Ml bow to whatever "line--tween

hag been

well, ^especially

in-

the ^ocalled

pisani Plan for agricultural trade

care- which

the

French

advanced

infpr

renters

throug-h

international
It

snr

not^altogether

i'q

fortunate countries must feed the
hungry ones) could riot in good

demand sunnlemen-

theridea that gov-

grace opoose

of^

ernments

Flexibility' .would also be

I have suggested before.4

that

the

ni te storage

buy

under-developed

quantities'
products

for indefi-

up,

or'give-away

to needy

countries,

basic

.such

agricultural

would exceed

"three-year'

afpro-

vision- Unriei; yit; a production
shortfall 'iir: one year;-could be
offset in fhe1iex,t:twO, thus perm itting a correction of over-importation or under-exportation. Provisions could beTmade for letting
the corrective development-take
Place at the expense of the beneficiaries ,of the previous imbalance.
' ' ' 1 U'

international agreement would

undertake,to

by -the

forded

individual

governments participating in such

should become feasible. And above

stateg>

and

idea

The

induced to give worthwhile ap a commitment on "no further
quantitative import guarantees for increase in protection," in light of
nothing. National pride, a number of important products, go many promises made, should
diplomatic prestige and what has That the EEC countries will not at once be sought and should be
after all developed over the years
be state-trading entities is not the within reach. J
\
as an international code of honor
only reason why we should not
The United

the

the
pre-

clari-

contraction

should.imake definite
but this aspect in particular needs commitments for putting supplies
further clarification
There may into the food aid pool—if only to
be possibilities for linking supply the extent that countries happen
management with demand"supple- to Produce more"than their shares
mentation
through surplus dis- in commercial markets.

external and in-

subsidies,

onnmanh

arrangements

oblivious

management, surplus disposal, and
structural

participate in

^di'os^T

agri-

light of such priricip]es,

prices,

con-

and

government must be

natinnal

elements

systems

p]an;

; A system of this kind would
have enough flexibility to protect.
opposing • interests - within
the
limits of reason, It would link the
inseparable components of demand supplementation and supply
control—inseparable components.
of deliberate management where
Price has been largely deprived
its equilibrating function. Even
France (where there has recently
been a proliferation-of declarations to the effect that the more

Finance,

fully

are

the

pian's

Thp

acknowl-

with

tion and to

asonloqkers—expecting to get. all

world,, fying debate.3

and

base

arrangements

agreements centered- on the expectation that the EEC could be

that

sit

that

crete

often

were

suggestions for

Thus,

imply

will

they

insufficient

marked

countries

these

while providing
of commercial
(not' necessarilytotal) A output.
elsewhere..
.-.-A/v. *-■' ;
f°r

ad-

pared to give additional informa-

international

and

must

references to concrete

were

veloped countries that are on tbe~ proposals,

philosophy, economic

sense,

Most of .the explorations and cultural support and agricultural
discussions-thus far have been trade as they now exist or emerge
confined ^ to generalities. Where around the globe. :.A>;

negotiators

French

variable import levies were
taken 15 months ago. However, no
comprehensive plans have been

the

their

ground of the fundamental tenets

despife

and EEC's. But what

ours

earn

concessions

some -^countries,

Pisani-Plan,

Minister

French

yersant

tions> does continue to

the

negotiators

frQm

have stepped , up activities, especially, since the final decisions

Kingdom, of course,
that

sure

are

so-called

The

firm

of economic

gtart

amfty

equivalent

common

West-.they will be fully prepared,
and
eager,
to -make

GATT.;The

sadors oi the U. S. export trade

the

btate

the other GATT countries?

Of the United

about

Department

WQrk

wm have

and..Agriculture apdthe ambas-

•

national policy on agriculture and

how

kind,

this

The Pisani Plan

governments have not, oi agricultural trade '
in ; other in GATT, will have to be thorcourse, been ic:le- m the th^ee words> to prepare for-a world- oughly discussed and taken into
years that have elapsed since the wide approach on a special code account in the negotiations.
All
nature
oi
EEC s
fortncommg fQr agriculture within the frame- governments must see to it that

policy - became iully;. kn own
through the EEC (Commission s
the agricultural
proposals\r of.. June

and

jo'n

agreement

Act,

Expansion

about

large groups of
comas provided by the U. S.

Trade

GATT

that fig-

near

"reasonable" in concrete terms;
and could permitV expansion in

other

to the 50%

comes

somewhere

ure

;

"Kennedy- quotas would define the concept,

thought that these meetings-are Wanced in Nov; 1961 by M. Pisartito prepare for writing an, inter- in FAO and by M. Baumgartner,

Agricultural Trade V'.
-::r
1 n™ A.
AllThe
U.
b.
bovernmem ,-apa

auto-

all

groups

must be wholly subservient to the tv

A-':

the

basic; rule .is

GATT's

the

if we do not now insist on choos- round" must thus be preserved.
ing the most difficult approaches. '

respect is i of;.. great', importance. <:1-

; The

bility is more likely to materialize component

com-

.
a

GATT;

:'Sq

decided by the Ministerial MeetThis possi- ings. Their nature as an essential

grows, they too will become sub-

Part-iect to modification.

their

understanding trade barriers, as has already been

international

'ei^x.eSSeni^hh

mental positions. In time, perhaps, round for the further reduction of

Com-wpiffh

must

position vip ^his '

clearcut

ee» goveinm

EEC

the

^-Kennedy-round

of the

other than

countries

and

about which very

Another point

the

'Negotiations

•

Effective

guarantee of international trade

logically "and. politically more acceptable. "vi;
v
Basic annual quotas for' cornmercial output could be agreed
upon for moving three-year pe~
riods—with flexible annual re¬
negotiation provisions if trade develops contrary to the agreed,
purpose, which should be a reasonable development of domestic
output and of international trade..
Negotiated
individual
country

hictnrv

widntivA

mav

quota,

quotas ana might prove psycho-

;

and

over

commercial

principles of EEC's later be called to put the finishing
There is some pertinence to this
»
government's agricultural policy. It will be the touches
on what; must now be
argument; yet it would be quite
authoritv better part of wisdom for outside prepared in detail; But the prelegitimate for the United States 1
/ +h' Trad Fvnansion Act
countries to tackle their EEC'-paratory negotiations should take
to include this pointer in our re-run
.f- ,
fn hp ^pwiv agreed
problems at the soft spots, so-to- place in the GATT committees
actions,-if only to re-inforce our Possl
wn„^rp . n_, ieaders speak, first; and to seek accomo- that have been set up; and the
claim to a really worthwhile acA
this nrohlerh
Nation in manners that would not final agreements, also, must ' be
commodation in the agricultural
oroug s
Si participants -ffl' re<luire the surrender of funda- firmly tied in with the 1964 GATT

;

basic

quantities,

produced

of grain,

above

non-com-

all

the impression "of having failed to gested ad hoc conference should

-4.ua

•

Confinued from, pQ-9?

output, for

mercial- disposal
say,

not bring in interested non-GATT

and/countries:

to'essence

And

Thursday, August 15, 1963

the possible agreements could

cuss

the

and

why the

reason

modity committees that will dis-

realities

desirable

possible," both

For:

and

There is no

us.

pre-

determined "normal" level of output in each of those countries
(agreed upon from time to time),
Governments should have to fiFinally, the system of commernance these purchases from their cial output quotas could also be
own national funds so as to be combined with a system excluunder some pressure to curtail sively of maximum commercial
surplus

output

one

way

Agreements

other.

would go

long

way

the

this

toward

export

for

quotas

kind

countries, without

pay-

Fantastic

the French the compliment of

the

exporting

output quotas.

it may seem at first,

system of commerseriously considering their ;plan. cial output quotas for some counnot'v need -to ask for any other plan has interesting aspects/and As indicated, it; could be bent in tries, obligatory import quotas for
commitments. \ Nothing could be elements that might well become'the direction of reasonable
in- others,
and
maximum- - export
case,

long

eighteen months ago.

even

mixed

The

pnnivalent

on'

t.hpir

nart

and

farthor*

fi-nm

fooliom

cinno

nrino

~J5

.1"

quPtag for still others might prove
feasible.

a
_

n-f«

This point
serious

1
•

r»

....

...

■0^

put,.,.,;,**

Some suggestions also

B...

proposals

„

r...

concrete

content

of matic sine

qua non

they

all

j shall

now

proceed

vai'iauic

making These- cuts
-of

groups

the

all

.these

commodities,- provided

other --GATT.

through F

countries

do -likewise. But they

are-not prepared to do so; hence
we can

smaller

just
not

match your cut by a much
one

only.V' This might be

welcome excuse;

be.

any

it might

there

case,

great problem'there about which
1
-

our-

public

silent

x.-_„

discussion
'%

has

been

.levies,

eouiu

xi._

^unldate themr0pasals l-.liv^madfe-bracks.:

negotiated.,. The,, fundamental

principle

EEC's

ori

pre^oi^ AcS^^ ^
uceasiuns,,

agricultural

policy is the maintenance and full

The

protection of yet to be determined

producer
products.
termine
0f

the

price

levels

These, *. in

for

basic

-turntv de-

automatically the height

import

levies

and -require^^

their

variability.
Hence,
those
hoped-for measures would be altogether

incompatible

--l._„x

.i-

un-

;.y;.;

_xi

outcome

the

whole

imnlied

the
niosc-iavorea-nation

prospect I

dread to

prmciple-^-a

contemplate,

tural

the

negotiations

trade

that

are,

agricul-

shortly

befin..both
'n GATT's Trade Negotiations Committee and in the
separate

Commodity

Groups

—

4See

deflaa

compromise

indicated.

Also,

minimum-maximum range of the

Agrarian
jUne

Affairs

8,1963.

firm

trade

pr0ve

undertakings

not

governments agree to reserve, out
-■

3 For a review of the Plan, see the
Present author's-article in the Journal of

4 See

ried out.:

feasible. The idea is that, if1

AprHni963^-'Asrrar,an Affmrs

The Commercial and Financial

ternational

Whether

agricultural trade should not take
P ac^Wltllin GATT, hut rather in
f.n
c conference on internatl0nal agricultural commodity

with the
iagreements.2The
fundamentals of EEC policy.
•
p .mm
.:-

hot connected-with international price will have to be
something akin to the Pisani Plan, negotiated
in' the
interest
of
m> France's dynamic international agreement might in- stability, even if a substantial
Agriculture, has again elude an understanding on com-r concerted increase such "as M.
that the. discussion'on mercial output quotas — whefe Pisani wants were not to be car-

GATT Framework

wrir«

exercise may hinge on this point,

for such products for which there
will be commodity'agreements, a

Commercial Output

•

re-

specific

Plan and some

certain terms, in his address at r-On, p r.ic e s d;he . international
the„ vehicle for^,an -ultimate denial induced to lower drastically the sucgestiortk^oh'-'strhteev-gind-cttn Harvard University's - .Graduate agreement that we must strive for
of reciprocity; as we see it, also variable
import levies now in ef-" tent of the negotiations hooina
School of Business Administration cannot remain silent either. InT
of the .EEC and even
feet; and it is still seriously be- as j sajd fba^ fbey wjn contribute on Jun6 8.5 Further procrastina- ternational prices will in any case
Britain.^It.'.:,is
auite
conceivable
S l
wey ^ conmDUie,
f0 be discussed under the

-^he hope that the EEC could be

seem

can

M. Giscard d'Estaing

has again called for it, in no

•

For

duced to shares in the total comfor the Geneva mercial market,"
?
vx^xvx-

all these and prob--negotiations.

ably additional points.

expressed

,....

toward expansion of out- spell out

is likely to ptoye a

matter—npt only in itself,

?.Ut

t.i*

The

Commercial

Agrmian Affairs, April

mixed- price-support-producer-

subsidv

system

might be sought,

suDSiay t>ys.iem
5 y ^
71
at least so far as the importing

countries are;COncerned, And,as ^
Financial

and

1963.

With respect to internal prices,

transitional measure. The proposal

^ linked to three ideas, as I haye
explained

articles

1963As reported in Le Monde' June 9'10' (I.e.): (1). To make possible in-

international
to facilitate the realization o'f the. agreement a quantitative defini-.
basic- principle
that
protection Hon of this vague term would
should not be* further increased;,, automatically
result, for other
and (3) to facilitate supply man- commodities,
a more concrete
agement by trying to direct in- definition should also be secured,
/an

;

the commodities negotiation, of commodity agree- seeking agreement on detailed ar-

neutral as,No. doubt, for
produced;(2). placed;, under

products

between

(661)

Financial Chronicle

The Commercial and

...

that-is

support

come

Number 6290

198

Volume

Alvv^of ^700 Millinn

«p IUU lVlIIHUIl

ments and other provisions within rangements that would promise,to
the new Code,; An example 4s, carry out.the principles adopted;, -

y .

„

afforded by the dispute on poultry
The general philosophy is that OpUni .LidSl I0<Al IOr
between the United States and of an acknowledgement ; of the
;/,•
'
EEC. Contrary to what is gener- desirability of efficient resource Canadian Ull and
ally believed and has been im- utilization throughout the world
r, ^ v
come
payments
(producer subWith respect to protection in plied even in official statements, and hence of the need to maintain GaS Exploration
"
.sidies) to structural reform and to importing countries, especially the this is not a rase of poultry .pro, land .expand international ^adep
•
retirement from ;agriculture
(or EEC, of livestock products and Section as such, but rather one of At the same time this philosophy Expenditures by all . companies
from certain agricultural uses) of fruits, for which elasticities of de- souses of the anti-dumping idea, acknowledges the primacy of po- involved in the exploration and.
land and labor 6;
mand are still considerable, the o£ discrimination, and of biased litical realism and the importance,, development of oil and gas rePoints m and rn
obvious; question of consumer prices (and calculation of feed conversions, of gradually in needed adjust- sources in Western Canada totaled
ore

or producer .subsidies}
particularly important
saulbble in EEC about reduce? and must have a place in the disTOfceunification
Each country cussions. On livestock products,,
would have to maintain or w^uld however, exporting countr 1 es
redude itJ own Droducer prke as should be warned not to fall into
it saw fit and would be able to the-trap of misreading the protecdo so; no country would be forced tion levels sought or established
to
increase
it
because
of
the by importing
countries. France
phantom of producer price uti'ifi-and Germany, for example, have
Ltinn Tn ihk wav it wnnlH he long been 'known for their inornoint

(21

wouW

consumer

that

said

eliminate

once

becomes

the

■

ments that affect the physical and $685,700,000 during the year 1962,
spiritual welfare of men-a grad- John W. Proctor, General Manuality that has become a basic ager of the Canadian Petroleum
tenet of modern economic policy Association, m making this anThe -broad propositions fo- nouncement on Aug. 9, stated that
which we can hope to achieve the results of a recent survey conagreement include" the- avoidance ducted by the Association indinegotoiorifor oi °"urth?r
™ protection
fhfnrosoectiv;
Code
?" '* ""f?""®?*8 to consumP"" n/n/f
S w/S™
tnp prospective new Code.
tion, .except in dire emergencies- year joi expenditures in Western
Similarly, GATT.. members are the recognition,Of
productivity in-. Canada.
'
the basic need of

(See above what has been said
"bout f™ed lev.es for-livestock
Products.) These matters can be
^ken up at any time under the
General GATT rules find again
contrary to common belief, their
discussion does not depend upon
new

agri-

its

source

the

Mr.. Proctor stated that

,•

and

of $33 million for

income

im-

struction in 1962 largely accounted

recognition of the

the

for

decrease

ever

calendar

iirkwisb

All

•of

^Y'/tions"issued!

ana

aspects

r.—.

—

matters

these

far

thus

this

serve

„„.v

^v.ik.u:AU

plant

gas

from

con¬

the

1961

during

expended

year.

Net'- cash expenditures of the
national agreements with definite petroleum industry in Western
.

gradual-integration.
Wnhimiiv

nniu.

drop

true,

only

unnn

wlnr\*'ne\ commitments

oah u';n:UU'

.regarding "national .'Cano/io;!««« in/in

price agreements will have
the

discussed in

whether
be

price

iations,

nego

were;,'

measures

as>substitutes:

sought

supports
trade,

uses.

should

prevail For

management

•equilibrate

suffice

ahd[

supply

in
as aerivea
primary levies like

ferentials)

price

while

not

may

not

ones,

tHiwi

demand

Tt follows that we

<frain<!

fin

..Aib^tai;^Ir^$544,500^$496,10ft

mitmSnts
•-

Preference must remain
tion and

an excep-

modest and

grad i

?a 1

.,.

• -

internal prices,. subsidies, demand
suPolemehfafion

through

i. 79 100

Saskatchewan

siiml^British;Columb

88 400

61,000 ": .79,800.
14,100

7,300

prices) *

^nd" any
will

aehieve
Miscellaneous

There
which

will

included

subjects

that

have

•

—

ihat

For commodities

included in. price

and" for7which

prices

This' is

concerned.*

our

lations of the EEC Commission of
J.an-14» 1962, then- before-the com
tractmg. Parties, wThe principle
was for example, clearly imp bed

these

that

circumstances
«=VinTilri -artark'

an^i

can

negotiate

and

would not

agreements,,
import

prices,

^ontants

forfaitaires"

which

"were

laid

the

Agricul-ybeen treated above in the remarks
provide for their ap- on minimum import prices.
let conformity with

pi 8 in m s

„

.rrvrri

Most of the matters we reserved
declaration

exPort

tinue

would

have

the

:;to

subsidies

some

countries,

6 For

detail,

19.

intra_Community trade.

™li«
moment

wish

lThLJhreg?rtto "liol.aTat^cl'udS
least

trace

the

supply-demand

SfuuiTiiki

the3price p^bTems
to

re-read,

and

re-enjoy

Hubert

Sir

s^tem" rlc»aL„;c'cioUw. Do!
ce[?b"
ihough he addressed
to
different
He
who himself

issues.

efforts

was

will bp

forthroming

com-

agreements

trade—the

vMation

otherwise
the

price

system,

will

than51 thro"^^!!

remain

indisnen-

wished

emphasize

the

infhince. of the

recognition

For

Agriculture

^
Naturally,
»

special

nego-

that they

can

>p0

sum

States has a special obligation in

«,wtri»e

all GATT countries

fore, that this influence be a healthy one,
the configuration
of prices should

that

such

pull

directions

which

pHcerdproposailh^of ^h^French^Pian will
por°tamVetes?.be canfronted with this im"
ii

challenged
•

programmatic

say

this respect because it was one of
the

strongest

that we incIusion
nego-

trarfp

o£

first

philosophy

general

proponents

agrieulture

the

npp'rvHntions

logiegians: af£irmigng> ^

rangements made

rules

the basis of these

be agreed; next seeking agreement

arrangements,

xyr

• '

•

5' ^atheson, 225 Fourth, St.,

and

the

quite

possible

that the negotiations on agricul-

pnnFprpripo

+ahl_

Rllt

TALLAHASSEE,

Fla.-Dempseyi

Tegeler & Co., Inc., 207 East Park

Avenue. Jan Winn Simpson is
"
>'

manager.
■
•

Branch in Tulsa
TULSA, Okla.—F. R. Burns & C<w

Enterprise Building. Max A. Gist
ig resident manager.

With Bioren & Co.
.TTmTrrAWAT

-n

ALLENTOWN,
Pa-Bioren & Co...
m€
New York Stock Exannounced the asso-

ciation of Franklin J. Vandergritii
a

Registered

w''t.h

I1®,™ ST

R,Putative
(

<>«><*> 17th and Llberty Streets,
.

Hutton Adds

ATLANTA, Ga.—James E. Orr is

derived from the general philoso- better will be our chances to pre-

with E. F. Hutton & Company*

challenge does not have to wait

Marshall Branch

come to the conierence taoie. r5Ul
the fitter we are prepared, the

and

determtaT the rang^of ^Urn®r^ n°w

principle these products

compliance of their partners with, must enter the agricultural
Agreement and tiations as

the

7A ^lnnar<^'

™
,T
f
-W

on y ^

this is pre-

Seventh St

S°

\Y/;.|

t\/t-

^7^
^ %

Tr
i°i

for

^rc'TemaiurTront'^ar!^ hi„ag ^ them- Som® o£ th®.which we believe all parties to ture will lead nowhere, no matter
fundamental.
It is important, there' EEC measures and practices can
wmcn we Deneve ail parties to
prepared
the
parties

and

gain

special GATT Code

the Articles of the
physical controls,... the

AJJ

Hailum Adds

to extraordinary heights. This vi- dustrial items, in the fixed tariff RHINELANDER, Wis.—The Marelation can therefore be dealt with groups.
"
shall Company, First National
not only under GATT's anti-disIn the foregoing; statement I Bank Building. Robert G. Heck is
crimination provisions, but also have attempted to summarize a .Manager." '
under, the arrangements .agreed comprehensive position on , the
Tallahassee Office
t:i
uP°n in the 1961/62. negotiations, contents of the forthcoming in'
Ta

^ould continuously watch over discussion> j would

proposition

Qf tWs

made

n/rTMMPADnr tc

t<*
intra-EEC. trade ': to, be in- cultural segment of the negotiacreased, by government subsidies, tions and included, with most in-

economy

;H.

countries should lose no ternkttenal negotiations of -a new
time to face EEC sternly on this GATT regime on agriculture. The
cisely the vehicle through which issue; that it is a live one and has long chain of reasoning that leads
countries have now agreed that §reat Potentialities for evil may to these proposals has been given
patt should nrovide for a fair
aSain be seen in the US-EEC dis- in the earlier contributions mengive-and-take for agriculture as pute on poultry. ,It is this context tioned I am convinced that nothwell
Qur
declaration
had
the that makes the poultry dispute a ing short of a detailed position
same purpose,.for the commoditest case for EEC policies, not the covering these and other points is
ties
concerned.
It will
be im- alle?ed trebling of German pro- necessary if governments want to
portant for United States policy tactlon as the U. S. erroneously make progress now after so much
to be aware of this connection at Oharged.
inertia in the past. The United
for

1963.

not1 for

rt0^fnilf.ural

would

hensivc

lirtiations
pA,solkof
yK a

see

published'in *Ae

strictly subject

1963-

8 1

of th^ conclusion

of GATT's Article XVI.

greater

of March

^ ^ paJ"L

they

"equitable export shares" ^

provisions

March

must ;;con-

T.'FC1

npf*nt?afmn«j with

further

fnT,

TT-s Article XIX.

y 0

Craig

- ,

443

Corp.,

because it permits the preferences be removed from the special agri-

1962

Carryover From

^4ti^^ng-Ptete^:.
:
tT\r

under
3>

some

?
a gradual
„idevelopment
tom
of protection
-p
and
u
s
eveiTrflort^u^

Code for

new

tare should

some

down; for some would only be suitable tor,

are

areas,

down

(some- bination.
Clayton Securities
^Ne?dless to,sfy that interna- Congress
for
commodity arrangements

0£ ^ commodities. It was also products
grains nossiblv meat
about, the convermo^tUios.: ^p-: ^learlyi implied in the reference,, some dairy " products e-gs and
plied to the gram feed^ component by the pertinent EEC regulations sugar- For ottos fteef iariffs
of livestock products from .which J the mo„ta„ts.rfu„ction of pro- shoutd remain Vie <mlv form oi
plementary levies that are due to

reference

or.

ernments, and producer payments

tied to shifts or withdrawals of
1 wo WitH Clayton
land or labor from ^agricultural PORTLAND,, Maine -r-Henry S.
uses-some or all of these in loose GRbert and F.W.Bernard Hard^thf sfall"esf f.th®, ^called coordination or systematic com-, wick have joined" the fetaff _ of

called,gate prices, the derived levies result. The

(also

lock-gate

^he ^livestock

anc£ should,, attack ana nego

minimum

equivalent.

tions,:and spelled out in the regu- for compliance hy. farmers or gov-

^However, it also follows Horn

•'

automatically

policies 'far? have
largely failed to acknowledge.

been

■

iwith

adjustment ifor

point

mentioned. But there will also be

•others

carry

products

the

will

corollaries to the im-

portant

matters-

proposals." Some

agreement
•emerge

other

should

Prpvisions

adjustment we

then

broad propositions that can be

the completion of the forthcoming phy; and finally discussing and

vent such a calamity.

Inc., 2 Pryor Street, Southwest.-

The Commercial and Financial Chronicle

' (662)

Thursday, August 15, 1963

* INDICATES

Securities Now in Registration
NOTE

Registration statements filed with

—

carried separately at the end

now

are

"Securities Now in Registra¬

of this section

parenthesis alongside

tion." Dates shown in

the
flect
are

and in the index, re¬
the expectations of the underwriter but

company's

name,

not, in general, firm

Also

offering dates.
"Effective

under the caption

shown

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

Registrations"

are

for two insurance subsidiaries. Proceeds—For
investment,
and advances to sub¬
sidiaries. Office—112 California Ave., Reno, Nev. Under¬

facture

ordinaies,

writer—None.

St., Hollywood, Fla.
Corp., Boston, Mass.

repayment,

Bay State Exchange Fund, Inc.

lu,000 $1 par capital shares to be
certain acceptable securities on
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
will not be consummated unless $25,000,000 of securi¬
ties are deposited and accepted. This means that the
Fund expects to issue a minimum of 1,000,000 capital
May

basis of

the

Bede

Airway Hotels, Inc.

April 1, 1963 filed 200,000 common. Price—$5. Business
^Company owns and operates a chain of motor hotels,;
apartment buildings and a shopping center. Proceeds—
For

floan

purposes.

repayment, expansion and other corporate
Office — 901 Fuhrmann Blvd., Buffalo, N. Y.

Underwriter—None.

Beneficial

parent, on the basis of one' Ventura share for
each 25 Allegheny shares held.
Price—By amendment

Corp.,

Business—Car rental. Proceeds—Allegheny
will receive the proceeds and loan them to Ventura.
Address—Washington
National
Airport,
Washington,
(max. $10).

Underwriter—None.

Amerel Mining Co.

Ltd.
July 31, 1961 filed 400,000 common shares. Price—500.
Business—The company is engaged in exploration, der
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.
•

American

Mortgage Insurance Co.

being offered for
the basis of one share
for each five shares held of record Aug. 17. Rights will
expire Sept. 2. Price — $18.' Business—A mortgage in¬
surance company. Proceeds—For investments. Otfice—
300 Salisbury St., Raleigh, N. C. Underwriter—None,
Jan.,, 10,

1963

filed

31,070

common

subscription by stockholders

American Vitrified

Products

Co.

Aug. 6, 1963 filed 79,137 common to be offered for sub¬
scription by stockholders on the basis of one share
for each three shares held. Price—$19. Business—Manu¬
facture of various clay and concrete products. Proceeds
—For

debt

repayment,

plant improvement,

inventories

and accounts receivable. Office—700 National

City Bank

Bldg., Cleveland. Underwriter—None.
Atlantis International Corp.

(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.
Atlas

Finance Co.,

Ijnc.

(9/16-20)

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.
'

)

Atlas

Management Co.

March 28, 1963 filed $1,500,000 of 6% conv. suborcL de¬
bentures due 1978. Price—At par. Business—A
holding

JADING
ft

"*/<$>

over-the-counter securities

Bradford

July

22,

Speed Packaging & Development Corp.

1963

stockholders
on

filed

the basis of

held.

to be offered to
Industries, Inc., parent,

common

General

Bradford

share for

each

two Atlas

Price—About

$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
of

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. Offering—Expected in late September.
shares

Brantly Helicopter Corp. ;
July 23, 1963 filed 588,780 common to be offered for
subscription by stockholders on the basis of three new
shares for each share held. Price—50 cents. Business—
Production

light two-place helicopter. Proceeds—
For
debt
repayment, product development, working
capital and other corporate purposes. Office—J 129 Club
House Road,
•

Gladwyne, Pa. Underwriter—None.

Bridges Investment Fund, Inc.

July

(9/3-6)

25,

1963 filed 200,000 capital shares. Price—Net
asset value (max. $10). Business—A new
mutual fund.
Proceeds—For investment. Office—8401
Omaha. Underwriter—None.
•

Burns

(William J.)

Dodge Rd.,

TWX: 212-571-0320

Price—By

Company furnishes

and

golf course, swimming pool and cabana club,
Cape Canaveral, Fla., and develop real estate,
erect homes, apartment
houses, motels, etc. Proceeds—
For debt repayment and
expansion. Office—309 Ainsley
Bldg., Miami, Fla. Underwriter—Willis E. Burnside &
Co., Inc., New York. Offering—Indefinite.
Castle

Hospitality Services, Inc.
14, 1962 filed $500,000 of 8% debentures due 1969
par
($1,000).
Business—Company plans to
general

Ocean

Blvd., Pom¬

Underwriter—None.

(9/9-13)
•
$150,000 of 6% subordinated income
and

30,000

common

Price—$12

chemicals

growth

air

and

Corp.
26, 1963 filed 40,000 class A

common; also 40,000
common
to be offered by Mississippi Chemical
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.

other

and

corporate

Proceeds—For working

purposes.

Address

—

capital

Yazoo

City,

Miss. Underwriter—None.
•

CoLertdge Press Inc.

June

19,

Business

1963
—

("Reg. A")

50,000

common.

General book publishing.

Price

Proceeds

—
—

$5.
For

working capital and purchase of equipment. Office—60
East 42nd St., New York. Underwriter—Hannibal Secu¬
rities, Inc., New York.
Colorado Imperial

Mining Co.
200,000 common. Price—$1. Busi¬
mining.
Proceeds—For exploration and
operating expenses. Office—Creede, Colo. Underwriter
20,

1962

filed

A,'.

Commercial

Life

'-'/ov

Insurance

Co.

Missouri

Nov.
for

26, 1962 ("Reg. A") 46,000 common to be offered
subscription by stockholders on the basis of one share

for each 3.36

common

Business—Sale

shares held. Price—At-the-market.

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.
1963 filed 2,000,000 capital shares. Price—Net
plus 8.5%. Business—A new mutual fund
specializing in securities of foreign and American com¬
panies operating in the European Common Market.
March

value

asset

Proceeds—For

investment. Office—9465

Wilshire

Blvd.,
Cabot &

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

Community Health Associations, Inc.
April 12, 1963 filed 150,000 common, of which 100,000
are 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¬
sales

ment,

promotion,

other

and

corporate

purposes.

Office—4000 Aurora Ave., Seattle, Wash. Underwriter—
None.

Computer Sciences Corp. (9/16-20) ; 1
6, 1963 filed 200,000 common, of which 175,000
shares are to be offered by the company and 25,000
shares by stockholders. Price — By amendment (max.
$13). Business — Company provides various computer
Aug.

services to

industry, government agencies and scientific

institutions. '-Proceeds—For

working capital and other
corporate purposes. Office—650 N. Sepulveda Blvd., El
^

Continental Reserve

per unit/ Business—Production and
designed to control odors, bacterial

' '•

Corp.

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

For investment

subsidiaries. Office—114

St., New York. Underwriter—None.

Defenders

Insurance Co.

Jan. 30,

1963 filed 100,000 common. Price—$12.50. Busi¬
Company plans to write automobile insurance.
Proceeds—For general 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-

-ants 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

ing subordinated debentures held. At the

bear¬

time, the
company will offer the securities to the public. Price—
To subscribers, $20; to public, $^2.25. Business—Com¬
pany plans to erect a small size production and experi¬
mental

and

same

plant for the limited manufacture of deuterium

deuterium

oxide, and to establish and equip
eral research laboratory. Proceeds—For
working

gen¬

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

Diversified

Collateral

equipment, sales promotion

Corp.
77,050 common. Price—By amend¬
(max. $11.75). Business—A real estate investment
company. Proceeds—For investment.
Office—8397 N. E.

—221

Second Ave.,

tion

and

sale

pollutants;
an

and

electronic

pensing such chemicals.

development, produc¬
vaporizing unit for dis¬

Proceeds—For debt repayment,
and working capital. Office

Salle

St., Chicago. Underwriter—Price In¬
vesting Co., New York. Note—This company formerly
named

Chemair

WOODCOCK, MOYER, FRICKE & FRENCH, INC., Philadelphia

two

Price—By amendment:

class D

East

Canaveral Hills Enterprises, Inc.
May 10, 1962 filed 100,000 common. Price—$5. Business
—Company was formed to own and operate a country

1973

held.

Coastal Chemical

June

—

due

three

offered

expansion. Office—444 Madison Ave., N. Y. Underwriter
Brown & Sons, Baltimore. Offering—Indefinite.

Proceeds

Office—235 E. 42nd St., New York.

Underwriter—Smith, Barney & Co., Inc., New York.

Office—1068

each

—Alex.

selling stockholders.

Fla.

York

$26). Business—Writing of life, accident, health
disability insurance, and annuities. Proceeds—For

—

purposes.

New

(ipax.
and

Business

was

INC., Los Angeles

for

New York.
common.

—

sale

protective services to industrial and commercial
clients,
prmcpally by means of uniformed guards. Proceeds—For

Beach,

Segundo, Calif. Underwriter—White, Weld & Co., Inc.,

International Detective

Agency, Inc. (8/19-23)
July 17, 1963 filed 150,000 class A
amendment (max. $28). Business

offered in units consisting of one $10 debenture and
two.

Broadway, New York 6, N. Y.

819,024

Atlas
one

Securities

basis

—None.

—

•

Insurance Co.

•

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.

debentures

1942 ~

Direct Wires

(8/15)

Brooks, Inc.

Office—2025 McKinley

Underwriter—Clayton
Offering—Indefinite.

new

co-

repayment,

for

July 18,

corporate

Members of New York Security Dealers Association

R. /. HENDERSON & CO.,

Bobbie

common.

S$. SIEGEli

/■.;■, /

■

•

offer management and consultant services to
motels and
them with equipment.
Proceeds—For

BOUGHT-SOLD-QUOTED
for Banks, Brokers, Institutions

Life

debt

1963 filed 40,000 capital snares
subscription by stockholders on the

poses. Office—122 East 42nd St., New York. Underwriter
—None.
"
'
.ft/'';/

Chemair Corp.
Dec. 28, 1962 filed

Dlgby 4-2370

Citadel

ness—General

furnish

allMW

Price—At

specializing in

ESTABLISHED

Co.

Proceeds—For

March 26,

Sept.

pano

Insurance

June 28, 1963 filed 200,000 common. Price—By amend¬
ment (max. $4). Business—Writing of life, accident and

Dec.

Life

near

Standard

women's, misses' and junior sportswear,
and dresses.

health insurance. Proceeds—For general corporate pur¬

club

....

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

••'v-.'.

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

snare

one

ISSUE

REVISED

equipment and working capital.

filed

1963

29,

offered in exchange for

ADDITIONS

ITEMS

loan

shares. Offering—Indefinite.

licly.

•

company

tjhe SEC since the last issue of the "Chron¬
icle"

SINCE

Electronics

Corp.

Chestnut Hill Industries, Inc.
29, 1961 filed 300,000 class A

Nov.

225,000

are

to be

stockholders.

common,
offered by the company and

Price—$5.

June

13, 1962 filed

ment

Doman

April

19,

Miami, Fla. Underwriter—None.

Helicopters, Inc.
1962

subscription

filed

418,680

stockholders

of which

shares for each three held.

75,000 by

$1.25).

Business—Design and

manu¬

common

the

basis

offered

two

for
new

Price—By amendment (max.
Business—Research, development and construc¬

tion of experimental helicopters.

Proceeds

—

obtain

Number 6290

198

Volume

train service personnel, repay

of models,

certification

debt, etc. Address—Municipal Airport, Danbury, Conn.
Underwriter—None. Note—The SEC has issued a stop
order
•

suspending this registration statement.

Dominguez Water Corp.

Price—By amendment
(max. $8). Business—A public utility engaged in sup¬
plying water in a service area located within Los An¬
geles County. Proceeds—For selling stockholder, Domin¬
guez Estate Co., parent. Office—21718 South Alameda
St. Long Beach, Calif.
Underwriter — Eastman Dillon,
Union Securities & Co., Los Angeles. Offering
Expected
Aug. 5, 1963 filed 70,000 common.

mid-September.

(8/27)

Producing Co.

Gas

Dorchester

July 25, 1963 filed $3,500,000 of subordinated convertible
debentures due Aug. 1, 1975. 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¬
writers—A. C. Allyn & Co., Chicago; Allen & Co., New

Dallas.

York; Metropolitan Dallas Corp.,
-

Dri-Zit Corp.

115,056 common. Price—$2.50.
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

May 29, 1968 ("Reg. A")

Business—Manufacturer of dri-zit (a home

—

.Nevada Securities Corp., Reno,

Nev.

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

Price—$1 Busi¬

electro-mechanical vehicles and
medical and marine purposes.
Proceeds—For working capital, equipment and debt re¬
of

ness-—Manufacture

for

devices

electronic

Office—2222 S. Centinela Ave., Los

payment.

Angeles.

Underwriter—None.

Eagle's Nest Mountain Estates, Inc.
26, 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 offered in units of one $100 de¬
•

June

unit. Business—

benture and 100 shares. Price—$350 per

Company 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
construction, debt repayment1, working capital and other
corporate purposes. Office—2042 South Atlantic Ave.,
Daytona Beach, Fla. Underwriter — Alpha Investment
Securities, Inc., Atlanta, G<~. Note—This statement was
withdrawn.
Eastern

Chronicle

The Commercial and Financial

Eberstadt

(663)

Income

Fund,

Electro-Optical Systems, Inc. (8/19-23)
1963 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,
Weld & Co., Inc., and Kidder, Peabody & Co., Inc., N. Y.

June 11,

Electronic

Associates, Inc. (9/9-13)
1, 1963 filed 100,000 capital shares.
Price — By
amendment (max. $70). Business—A diversified com¬
puter and instrument manufacturer. Proceeds—For loan
repayment, equipment, working capital and other cor¬
porate purposes. Address—Long Branch, N. J. Under¬
writer—W. C. Langley & Co., New York.
Aug.

Electronic

(8/26-30)
Price—$2. Business
—Company plans to market a new drug known as
'Clinizyne" to be used for treatment of a variety of
rumor related diseases. Proceeds—For equipment, sales
promotion, research and development, and working cap¬
ital. Office—727 Land Title Bldg., Philadelphia. Under¬
Enzyme Corp. of America

Feb. 21,

1963, filed 120,000

writer—Bristol

common.

Securities Inc., New York.

Equity Fuhdng Corp. of America
March 29, 1962 filed 240,000 common. Price—By amendnent
(max. $6.50).
Business—A holding company foi

firms selling life insurance and mutual funds. Proceeds
—For new sales offices, advances to subsidiaries and
vorking

geles.

capital
Office—5150 Wilshire Blvd., Ln« An
Underwriter—To be named. Offering—Indefinite.
Educational &

Farmers'

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

the

Chicago.

Denver. Underwriter—None.

(Ohio

Star

(Offering

Common

(First

Boston

ers

and reduction

(Smith,

Eastern

Barney

Co.,

150,000

Inc.)

Federal

Investors, Inc
(Paul

J^aly 1, 1963 filed 64,000

Electro-Optical Systems, Inc
(White,

Weld

Co.,

& Co.,

and

Inc.,

Kidder,

Com.

2,099,858

Moseley &

Co.)

$15,000,000

1701

Pennsylvania Ave., N. W., Washington, D. C. Un¬
& Coe, Washington, D. C.

derwriter—Mackall

Fidelity Mining Investments Ltd.
1961 filed 800,000 common. Price—By amend¬
Business—Exploration and testing of mining prop¬

Nov. 30,
ment.

Proceeds—For general

Associates, Ltd., Toronto.
First American

Aug.

15,

terest.

Dillon,

(Eastman

NOyes

Yale Express

Plohn

Union Securities & Co.; and
& Company) $6,500,000
1

Union

Resort

Hemphill,

Peabody

\ork

Co.,

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.
,

Florida Jai Alai, Inc.

June
ness

28,

Co.)

French Market

June

24,

Iowa

Public

Class A

$720,000

Co.)

Chemair

Corp

Garden State Small Business Investment Co.

Weeks)

(Bristol

Securities Inc.)

Market Shopping
(Midland Securities

Common

Norfolk

Rogers

$240 000

Center, Inc
Co., Inc.)

Co.,

Inc.)

(Samuel B. Franklin & Co.)

Tourist Industry

Units

Aileen,
.

$5,000,000

200,000

Inc.)

Bonds

EDST)

noon

(Wednesday)
(Minn.)

October 1

(Tuesday)

(Bids 12 noon CDST)

$5,000,000

Jersey Central Power & Light Co...:
(Bids

October 3

EDST)

a.m.

Debentures

Bonds

$18,525,000

(Thursday)

System, Inc

(Bids to be

October 8

Debentures

received)

$25,000,000

(Tuesday)

Public

October

Service

Corp.

Bonds

$15,000,000

(Tuesday)
to

(Bids

Nevada

100,000

EDST)

a.m.

Debentures

$180,000

100,000

October 22

Co.)

497,500

Equip. Trust Ctfs.
EDST)

$6,900,000

105,458

Bonds

received)

$11,000,000

(Tuesday)

Public Service Electric & Gas Co

(Bids

November

a.m.

EDST)

(Bids

(Tuesday)

November

Common

200,000 shares

Bonds
be

$30,000,000

received)

Preferred
be

received)

(Wednesday)
noon

EDST)

(Tuesday)

New

England Power Co

New

England Power Co

Bonds
$10,000,000
——

(Bids to be received)

$6,540,000

December 10

September 16

(Monday)

Preferred

$10,000,000

Atlas Finance Co., Inc
.-(Marshall Co. and McCormick &

...Preferred
Co.)

37,500 shares

(Tuesday)

Pacific Ry
(Bids

•

S7.000.000

Y., Chicago & St. Louis RR.—Equip, Tr. Ctfs.
12

(Thursday)
to

Georgia Power Co

Debentures

$40,000,000

Georgia Power Co

1'.

(Bids

$9,000,000

Co.

(Bids

(Bids to be received)

Preferred

received)

(Wednesday)

Power

Capital Shares

Co.)

Chicago Burlington & Quincy RR.__Equip. Tr. Ctfs.

Common
&

.Bonds

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

Common

$20,000,000

Jersey Central Power & Light Co

Co.)

(Goodbody & Co.)

$1,485,000

$12,000,000

September 11

(Tuesday)

Line

September 18

Northern

Allyn & Co.; Allen & Co.: Metropolitan Dallas
Corp.) $3,500,000
V

noon

Witter

Common

Northern States Power Co.

..Debentures

(Tuesday)

Inc.)

Gulf States Utilities Co

Inc.

Development Corp., Ltd.—Debens.

Producing Co..

Noyes

September 10

Simonds

Dorchester Gas

Investing

page

Common

Co.,

Securities

September 17
Atlantic Coast

'Bids

$135,000

(American-Israel Basic Economy Corp.)

August 27

$300,000

Inc., and Baker,
330,000 shares

Squire For Men. Inc.——

Brothers
(Dean

Common

Hutton

Weld

(Tennessee

Bonds

EDST)

& Western RR
(Bids

Common

Handleman Co.

$7,500,000

Langley

Computer Sciences Corp

Units

(Hemphill,

300,000 shares

Enzyme Corp. of America.——

; "

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

Wisconsin

(Monday)

Hawthorn-Mellrdy.

$400,000

Mills, Inc
(Hornblower

(A.

EDST)

Associates, Inc
(W.

...Common

(S. Schramm & Co., Inc.)

$750,000

Co.)

Corp.

Electronic

(8/26-30)

Proceeds—For working capital, and other
corporate pur¬
poses. Address — 95th & Metcalf Sts., Overland Park.
Kansas. Underwriter — Midland Securities
Co., Inc..
Kansas City/Mo.

Units

Equip. Trust Ctfs.

a.m.

September 9

(Monday)

International

Shopping Center, Inc.

("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.
Price—$500 per unit. Business—Operation of a discount
type department store in the Greater Kansas City area.

Columbia Gas

(Thursday)
11

Busi¬

pari-mutuel

and

games

$1,000,000

Co.)

noon

Service

Price—$5.

common.

Alai

1963

October 16

Plohn

Jai

(Wednesday)

(Price

(E.

Common

Fuller

September 5

166,376

300,000

betting. Proceeds—For rent, purchase of leased quarters,
building improvements, working capital. Office — Fern
Park, Fla. Underwriter—Consolidated Securities Corp.,
Pompano Beach, Fla. Offering—Indefinite.

(Bids

Common

Inc

Securities

(Charles

August 26

filed

1962

Operation

—

(Bids to be received)

(Bids

Fund

of beneficial in¬
Price—$10. Business—A mutual fund which plans:

$4,000,000

Inc.)

Mutual

2,750,000

$875,000

(Friday)

August 23

French

Common

$900,000

Co.)

Southern Pacific Co..

Global Construction Devices, Inc

Russell

Warren

(Bids

Atlantis

Inc.)

Producing Co

(S.

Hemphill,

Debentures

Broadcasting,
(New

Co.,

Inc.

Teaching Machines, Inc

(Wednesday)

Mohawk Rubber Co
Rollins

$450,000

of Missouri
(R.

Class A

Securities & Co.; and
400,000 shares

Corp.

September 4

(Kidder,

Co.)

Securities

Gas & Oil

Israel

filed

Company)

Noyes- &

August 21

(Peter Morgan

-Debentures

System, Inc

Dillon,

(Eastman

Natural

(Tuesday)
System, Inc

Express

^.Capital Shares

200,000 shares

National Fence Manufacturing Co.,
(Netherlands

August 20

1962

Common

underwriting)

(Charles

corporate purposes. Office
Underwriter—G. V. Kirby

Richmond St., Toronto.

(Tuesday)

Common

Peabody

be offered for sub¬

$20). Business—A holding company whose subsidiaries
are engaged in the sales finance business and the
writ¬
ing of marine and credit life insurance.
Proceeds—For
redemption
of
outstanding
second
preferred
stock,
working capital, and other corporate purposes. Office—

(White,

Debentures
F.

Bridges Investment Fund, Inc

Inc.) 403,000 shares

common .to

scription by stockholders. Price—By amendment, (max.

(Bids

Heck's, Inc.

(No

Finance Corp.

Recording Industries Corp

underwriting)

.Class A
$400,000

Kimball & Co.)

payable. Office—3600 W.
Underwriter—None.

Services

(Thursday)

September 3

of accounts

Pratt Ave., Chicago.

(Wm. J.) Int'l Detective Agency Inc.—CI. A

Burns

Price

EDST) $35,000,000

a.m.

and

shareholder.

(max.
$15).
Business—Design and
tools, dies, molds, beryllium castings and
che distribution of
plastic, metal and glass products for
dome use.. Proceeds—For a recession offer to stockhold¬

Debentures

Co.

Corp.

2,500 by

amendment

Stiver & Co.)

Sprague Electric Co

Yale

mem¬

Debentures

Inc. and Saunders,
$1,250,000

stockholders—no

—By

•nanufacture of

Continued

Forms, Inc

Gas

August 29

(Monday)

August 19

its

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

100,000

Co.)

New England Telephone & Telegraph Co

201,150

Co.)

betterment

—

(Bids 11

Capital Stock

(Bache

Freight Carriers Corp

educational

and

bers. Proceeds

Lone

Bobbie Brooks, Inc

Carolina

economic

(Reynolds & Co.,

(Thursday)

August 15

ness—A

Lewis Business

NEW ISSUE CALENDAR

Co-operative Union of

America

offered by company and

—62

29, 1963, filea o0,00U common. Price—$2. Business
—Manufacture of the SAFER Butter Chipping machine,
and processing of tray-forming and chip-covering mate¬
rials. Proceeds—For operating expenses, equiprhent, in¬
ventory and advertising. Office—118 E. 28th St.. New
York. Underwriter—L. D. Brown & Co., New York. Of¬
fering—Postponed.

Corp. V

Oct. 29, 1962 tiled 20,000 common, of which
17,500 are to

erties.

Dispenser Corp.

Ian.

(8/19)
1963 filed 100,000 class A shares. Price—$4. Busi¬
ness—A small loan company. Proceeds — For expansion
and working capital. Office — 147 Northeast Main St.,
Rocky Mount, N. C. Underwriter—Paul C. Kimball & Co.,
Investors, Inc.

June 4,

Fedco

Inc.

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.
May 31,

noon

Equip. Trust Ctfs.
EST)

$4,800,000

Virginia Electric & Power Co..—
(Bids to be received)

$30,000,000

...Bonds
,

;

Chronicle

The Commercial and Financial
40

Proceeds—For

izing in Israeli and American securities.
investment. Office—54 Wall St., New York.

(8/23)
Price—$3.20. Busi¬
gteel supports and
construction. Proceeds—For debt repay¬

Construction Devices, Inc.

used in

expansion, research, and inventory. Office—545
Teaneck, N. J. Underwriter—Charles Plohn
Co., New York.
; -v.;■>.

interest.

Aug. 3, 1961 filed 300,000 shares of beneficial
Price—$10. Business—Real estate. Proceeds—For invest¬
ment. Office—530 St. Paul PI., Baltimore. Underwriter
—To be named.
Note—This firm formerly was known
as

Continental Real Estate

•

Proceeds
For
generalcorporate purposes/ Office—811 duPont Plaza

sition and development of-real estate/

Underwriter—None.

Corp;;.//,;
"Ffeb"; ^0, 1963, -filed 3,000,000 common. Price—$2. Bast*
^ness-^Company plans to operate subsidiaries in the fields
of banking, insurance, finance, etc. Proceeds—For gen¬
eral corporate purposes. Office—1107 Federal Securities
-Building, Lincoln; Neb. Underwriter—None;
v

Greater Nebraska-

Handleman

records, pharmaceuticals, beauty aids and sundries. Pro¬
stockholders. Office—670 East Wood-

ceeds—For selling

Inc.,

bridge, Detroit. Underwriters—E. F. Hutton & Co.,
New York, and Baker, Simonds & Co., Inc., Detroit.

1963 refiled 180,000 class A common.

12,

Price—

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

Street Co.

Hill
Oct.

coinmon to be offered for

subscription by stockholders of Union Bank of Califor¬
nia on a share-for-share basis. Price—$3. Business—A
company.
Proceeds—For in¬
Office—760 S. Hill St., Los Angeles. Under¬

management investment
vestment.

writer—None.

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

—

Office—216 E. Monroe St., Springfield, 111. Under¬
(same address).

writer—Horace Mann Investors Inc.,

Book

International

Distributors,

July 3,

Inter-Continental

Fund,

which

Nov.' 13,

Inc. (same address).

1963 filed 3,000,000 capital shares. Price—Net
plus 7V^%. Business—A new mutual fund
will
succeed
to
business
of Investors
Group

Canadian Fund Ltd., and invest

•

in securities throughout
investment.

Address—

Bldg., Minneapolis. Distributor—Investors
Services, Inc. (same address).

—A

real

struction

estate investment
and

investment.

and working

Office

—

$10, Business

—

For

—

3315

Public

Service Co.

con¬

(9/5)

July 19,

1963 filed $12,000,000 of first mortgage bonds
due 1993. Proceeds—For loan repayment and other cor¬
porate purposes. Address — Orpheum - Electric Bldg.,
Sioux City, Iowa. Underwriters—(Competitive). Prob¬
able bidders: Kidder, Peabody & Co.-Blyth &

Co., Inc.
(jointly); Eastman Dillon, Union Securities & Co.; Equi¬
table Securities Corp.; White, Weld & Co.; First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. Bids
—Sept. 5 (11 a.m. EDST) at 20 Pine St. (10th floor),
New

York.

EDST)

same

Information

Meeting—Aug.

capital. Office—243 Lane Ave., North, Jack¬

New-

Logos Options, Ltd.

28
'

(3:30

p.m.

amendment (max.
end

fice—26 Broadway, N.

Y. Underwriter—Filor, Bullard &

Smyth, N. Y. Note—This company formerly was named
Logos Financial, Ltd. Offering—Indefinite.
Lone

Gas

Star

(8/27)

Co.

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

securities

Israeli

enterprises. Proceeds—For
investment. Office—17 East 71st
St., New York. Under¬
writer—Israel Securities Corp., (same address):

—

For

general corporate purposes..
Bank Bldg., Minneapolis.
7;'7:■

First^National

2615

—

residential

and

commercial

real

estate.

Proceeds—For

general corporate purposes. Office-^82 Baker St., At¬
lanta, Underwriter—Overseas Investment Service;: Se¬

due 1988. Business—Production and
ral gas

distribution of natu¬

in Texas and Oklahoma* Proceeds—For loan re¬

Probable bidders: First Boston Corp.; Halsey,
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.
27

Lord Jim's

Service Systems,

Inc.

("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. Underwriter
Jan.

14,

1963

—Keon &

Co., Los Angeles.

Lunar Films,

Madison

Lambert

Ave.,

and

working capital.

New York.

Stephen,

and earth

ment,

Inc.,

Underwriter

Broad

St.,

—

Office—
Ingram,

New

working

capital

Second

and

other

corporate

purposes.

Ave., Akron, Ohio. Underwriter—

Morton

(B. C.)

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.
Underwriter—B.
C, Morton Funds Underwriters Co.,
Inc.

(same address)

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
investment. Sponsor — Ira Haupt & Co., Ill Broadway,
New York.

Offering—Indefinite.

National

Equipment & Plastics Corp.

Sept. 28, 1961 filed 105,000 common. Price—$5. Business
stores.

cleaning and pressing plant and affili¬
debt repayment, store ex¬

Proceeds—For

Address — Portage, Pa.
Corp., N. Y. Note—
registration will be withdrawn.

pansion

and

working

capital.

Underwriter—Cortlandt
This

National

Fence

Investing

Manufacturing Co.,

Inc.

(9/3-6)
Nov.
ness

Youngstown, Ohio. Underwriter—None.

Realty Trust

June

York.

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

trucks, buses

moving equipment. Proceeds—For loan repay¬

Office—1235

ated

Aug. 31, 1961 filed 125,000 common. Price—$5.75. Busi¬
ness—The production of television films. Proceeds—For
543

(8/21)

—Manufacture of tires for passenger cars,

—Operation of

Inc.

filming and production

Rubber Co.

Mohawk

July 19, 1963 filed $4,000,000 of convertible subordinated
debentures due 1983. Price — By amendment. Business

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

July 30, 1963 filed $35,000,000 of sinking fund debentures

•'

Israfund-lsrael Fund, Inc.

vest

Office

•

1962 filed 250,000 capital shares. Price — By
$10). Business—A diversified closedinvestment company. Proceeds—For investment. Of¬

April 11,

Offering—Indefinite.

address.

A closed-end management investment

—

Connecticut

Ave., N. W., Washington, D. C. Underwriter—None. ~
Iowa

Business

common.

sonville, Fla. Underwriters—Reynolds & Co., Inc.,
York, and Saunders, Stiver & Co., Cleveland.
/

Aug.
trust/Proceeds

$7).

1962

Underwriter—None.

Industries, Inc..

^963 filed 125,000

Stuart & Co.
Investors Realty Trust

May 31, 1962 filed 200,000 shares. Price

26,

'
7 h
I
Price—By amend--1" > Mitsui & Co., Ltd.
July 9, 1963 filed 10,000,000 common (represented by
ment (max. $5).. Business—Volume manufacture of in¬
500,000 A. D. S.) to be offered for subscription by stocky
expensively priced men's and children's belts. Proceeds
holders on the basis of one new share for each two held
—For debt repayment, sales promotion, and other cor¬
of record July 20. Price—$2.78 per A. D. S. Businessporate purposes. Office—33-00 Northern Blvd., Long
Island City, N. Y. Underwriter—T. W. Lewis & Co., Inc.,.. Domestic and foreign trading in a broad range of goods
and commodities.
Proceeds-^For expahsibn of trading
New York."./7
'
activities, and new investments. Address—Tokyo, Japan,
Lewis Business Forms, Inc. (8/27.)
Underwriter—None. 7 77'/v//
;/:,
July 22, 1963 filed $1,250,000 of convertible subordinated
Mobile Home Parks Development Corp.
debentures due Sept. 1, 1975. Price — By amendment. u
Jail. 28, 1963 filed 1,250,000 common. Price—$2.50. Busi¬
Business—Manufacture of a diversified line of business
ness—Company plans to develop fnobile home parks and
forms. Proceeds—For plant expansion, loan repayment5
Krasnow

June 28,

tive).

Proceeds—For

Feb.

company," Proceeds
/■

1000 Roanoke

World.

Development Corp. '"'>7'

filed 561,500 common to be offered for
subscription by stockholders on the basis of one share
for each two shares held.
Price-r-By amendment (max.

Chicago. Note—This statement:

■,->\

Co.

1963

Midwest Technical

—

withdrawn.

(same address).

debt'repayment. Office—52 Main St., Woodbridge, N. J.
Underwriter—Kidder, Peabody & Co., Inc., New York.
Offering—Expected in October.

inventories, plant expansion and working capital.
2301 N. Main St., Paris, Texas." Underwriter

was

Office—
Equity

filed 35,000 common. Price—By amend¬
(max. $36). Business—Collecting and distributing
in certain areas of New Jersey. Proceeds — For

June

Proceeds—For accounts receiv¬

—John A. Dawson & Co.,

Financial

Middlesex Water

•

—

Diversified

Free

search Corp.,

6% conv. subord. deben¬
tures, due 1972, and 150,000 common to be offered in
units consisting of a $300 debenture and 200 shares.
Price
$800 per unit. Business — Processing and distri¬

Office

—

Fund, Inc.
March 4, 1963 filed 500,000 capital shares. Price—Net
asset value plus 5%. Business—A new mutual fund to be
offered initially to members of the medical profession.
Proceeds—For investment. Office — 714 Boston Bldg.,
Denver. Underwriter—Centennial Management & Re¬

Sesame Corp.

seed.

equipment.

corporate purposes.

Calif."' Underwriter

City,

Meridian

May 24, 1962 filed $225,000 of

sesame

For/general

—

Corp., Los Angeles.

Proceeds—For loan repayment,

payment, construction and working capital. Office—301
South Harwood St., Dallas. Underwriters — (Competi¬

the

Studio

water

1,'V
Price — $1; Busi¬

1961 filed 250,000 common.
of medical electronic

Proceeds

ment

bution

Manufacture

;—

definite.

(John)

plans:

Medical Video Corp.

expansion and other corporate purposes. Address—Rio
Piedras, Puerto Rico. Underwriters — Morris Cohon &
Co., and Street & Co., Inc., New York. Offering—In¬
Kraft

open

sociates, Inc. Denver..^*-7;/
7

Inc.

value

asset

ment

Which

company

end,; Proceeds — For Investment in the
industry- and- capital -growth Situations.;-'Office
^677 Lafayette-St., Denver*. /UnderWffter^— MediCal As¬

7, 1963 filed 80,000 common. Price—By amend¬
(max. $5). Business—Operation of a small loan

June

business in Puerto Rico.

~ ; -7

medical

Newhouse Bldg., Salt Lake City.

& Co.,

Under¬

/I
Oct.; 23, 196i filed 25,000 common. Price—$10. Business
becohie

300,000 common. Price — $1.
a gasoline and diesel oil fill¬
station, a restaurant and allied facilities. Proceeds—
general corporate purposes, Underwriter — V. E.

Anderson

7' 7

Medical Industries, Fund, Inc;^^

-—A* closed-end investrhent

May 27, 1963 (''Reg. A")
Business—Construction of
For

concerns.

(same address).

ville, Spain.

24,

Investors

><•

insurance

other

investment ' in

and

penses,

writer—Ijncoln Securities Corp.

Inc.

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.

June

■

Corp.

Address—714 Medical Arts Bldg., Oklahoma City:

Inc.

Juniper Spur Ranch,

able

Inc.
(March 27, 1963 filed $1,250,000 of 6Y2% conv. subord. de¬
bentures due 1978, and 75,000 common to be offered in
units consisting of $50 of debentures and 3 shares. Price
1
—$68 per unit. Business—Development and Operation of
mobile home resorts throughout U. S. Proceeds—For
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 statement will
not be withdrawn as previously reported, but will be
Holiday Mobile Home Resorts,

poses.

—Mutual Fund Distributors,

•

1961 filed 2,265,138

16,

poned.

Medic

Feb. 28, 1963, filed 1,000,000 class B common; Price-—
$1.25. Business—A holding company for three life insuraiice firms/Proceeds^-For loan repayment, operating ex¬

..';1iic».'••'••• 77-7 A mr\.y
April \18, 1963 filed ;500,000 "capitalrsh^
— -Net'
asset value plus 8V2%- Business—A new mutual fund
seeking capital appreciation. Proceeds—For investment.
Office—467 Hamilton Ave., Palo Alto, Calif. Underwriter

ing

and

postponed.

Underwriter

Key Finance Corp.

(9/3-6)

Heck's, Inc.

plantations. Proceeds—For general cor¬

Associates, Inc.
Jan. 30, 1962 filed 100,000 common. Price—$3. Business
—Industrial 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—K. F. Dowd
& Co., Inc., New York.
OfferingIndefinitely post¬

•

July 29, 1963 filed 330,000 common. Price—By amend¬
ment (max. $13). Business—Wholesaling of phonograph

June

staff

ness

(8/26-30)

Co.

Press, Inc.

sales catalogue, developing a national sales
working capital. Office—812 Greenwich St.,
N. Y. Underwriter—To be named. Offering—Indefinitely

lishing

Jaap Penraat

1963, filed 136,094 common to be offered for
iubscription by stockholders on the basis of one share
for each 4% shares held. Price—$5.50. Business—Acqui¬

Center, Miami, Fla.

Marshall

Co., Ltd.

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

25,

Underwriter—

—

also owns citrus

Investment Trust.

Atlanta.

May 29, 1962 filed 60,000 common. Price—$3.75. Busi¬
ness—Graphic design and printing. Proceeds—For pub¬

1963 filed 60,000 ordinary shares. Price—$55.
A real estate development company which

28,

Business

Industrial Park, Inc.

Greater Miami
Feb.

Israel-Rassco Investment

"Isras"
June

Bldg.,

None.

Hayward Ave., Baltimore. Underwriter—Inves¬
Planning Corp. of America, New York.

tors

Federal

Fulton

—130

—4200

Investment Trust

Continental Real Estate

payment of loans, and general corporate purposes. Office

Fund, Inc.

Israel

ment,

Great

Distributoraddress).

July 18, 1963 filed 500,000 common. Price—$12.50. Busi¬
ness—A closed-end investment company which plans to
invest in Israeli firms. Proceeds—For investment. Office

Cedar Lane,
&

Distributors, Inc. (same

Israel Fund

June 29, 1962 filed 225,000 class A.
ness—Manufacture, sale and lease of

beams

Aug.

April 22, 1963 filed 550,000 common. Price—Net asset
value plus 8x/?.%. Business—A new mutual fund, special¬

Newark, N. J.
& Co., N. Y.

Office—1180 Raymond Blvd.,
Underwriter—Godfrey, Hamilton, Taylor
Offering—Postponed.

investment.

Global

Thursday, August 15, 1963

Management Investment Corp.
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
counseling services on a fee basis.
Proceeds—For re¬

Diversified Fund, Inc.

American

Israel

*Continued from page

•

(664)

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

welded

products.
land.

and

ensburg,

Proceeds—For construction of a plant in Ire¬
working capital. Office—4301 46th St., BladMd. Underwriter—Netherlands

Inc., New York. '

Securities Co.,

198

Volume

Number 6290

The Commercial and

National Memorial Estates '

; :

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

ness

Proceeds—For general corporate pur¬
Office—13 S. Broadway, Red Lodge, Mont. Un¬
derwriter—Security Brokerage Co., Billings, Mont.
®

*ir ■**.

ment

•

Ave.,

(series"20) and 300,000 common
tificate^ $762; for'rstock,^
loan company. Proceeds
>
Office
113&,
Iuc/,

ll;®;

Proceeds"

—1956 Union Commerce
writer

For

World

New

Fundf

Inc.

Ahgeles. j Underwriter
(same address). f,-® ®:'
i

Nordon

Princeton

29,i 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

July

Provident Stock

gas. Proceeds—For/ selling stockholders. Office
Blvd., Los Angeles. Underwriter—Gregory-Massari, Inc., Los Angeles.
.
f \

xst?
Mar-

corporation. It will provide investors a means-of in¬
vesting in Canada, Western Europe and other foreign
areas.
Proceeds—For investment. Office—135 S. LaSalle

1, 1963 filed 30,000 shares of beneficial interest.
Price—$100. Business — A real estate investment trust.
Proceeds—For investment. Office—4900 Wilshire Blvd.,

— 2604
Securities

Office

Los

Inc.,

'•

Inc.

April 11, 1963 filed 1,000,000 common. Price—Net asset
value

New York.

—A

Northern States Power Co.

(Minn.)

(9/18)

Office—15 S. Fifth St., Minneapolis.

nient.

'Texes Plastics

Nashville.

■

•

•/- /

•.. ;

•

;

(Competitive)/Probable bidders: Halsey, Stuart & Co., vNoy. 2^1962 ("Reg; A'') 75,000 common* Price, —r $2.
First Boston Corp.-Blyth Sc 'Co. (jointly) y Merrill
B-usiness—Sale oT travel and. entertainment. Proceeds—
For capital investment, and working capital. Office—
Lynch, Pierce, Fenner &'Smith Inc.-Kidder, Peabody
411 West; 7th' St/.,/Los Angeles. Underwriter—Costello,
k& Co.-White, Weld & Co. (jointly); Equitable Securities/
Russotto
& Co., Beyerly Hills,^"Calif. Offering—Indefinite.
Corp-Eastman Dillon. Union Securities & Co. (jointly);^

Price—$6. Business—Operation of a chain of self-serv¬
stores selling., clothing; housewares, etc.
ProDeeds—For expansion,^equipment and working capital.
,
Office—2220 Florida! Ave./. Jasper,. Ala. /Underwriter—>®

Offering—Tem^r

x—«.

'filciss '"• A? * s.
-

Nuclear:Science & Engineering Corp)/;r// 7/! /"• raht. Priced $32®]per unit.-rBpsiness — Companycwiil
M^rch 29/1962"filed 100,000 comxhon.' Price—By amend- /erecE.and^operate.-a lyxury' lrotel^and resort, facilities,
ment 7/max." $15). Business—Research
a
—4 1 • - ^
:
mm on conftacts using radioactive
tracers

/^ .'".Tourist/Industry Development Corp.,

Ltd.;;(8/26)l>

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

Resources, Inc.
1962 filed 500,000 capital shares. Price—$1.50.,
Business-—Exploration, development and production of

;..,:/ v®Transarizona

;

deposit near Casa Grande,./Ariz,, ;

the Lake Shore copper
/withdrawn

■'

-V

■

!''V;,;- pnv«iwj;uuiHt:s. amifapiuneiiui uy aicmuas

upun uicn .

.://®'v.:"retirement. Proceeds—Eor^.working capital, construction •
Tax-Exempt Bond Fuhd, Series 5''
and other/ corporate - purposes.- Office—235 Lcfckerman "

/. i;-/
Nuveen

/®--r:r:/*'

ital. Office—201 Ej..4th St., -^Casa Gro^de, ,Arl2,, Under- ,
^^rTiter^—None/ v : /.- *
• >-. '5
'/:,;J ; / y

Price—By amendsinsurance holding comOffice-^520 S//W.- 6th
* exempted
from* Federal- income UaxeSv
investment/Office—Chicago, 111. Sponsor
Nuveen & Co., 135 So. La Salle St., Chicago;

believed

Proceeds—For
—John

Old

For

Florida Rum Co.

July 29, 1963 filed 338,755 common, and warrants to
purchase an additional 338,755 common, to be offered
for subscription by common stockholders in units of one
share

and

one

warrant,

the

basis

one

each two shares held. Price- -By amendment
and

other

alcoholic

ment/(max. $20)/* Business—Company and subsidiaries
own seven AM radio stations, three VHF television sta¬
tions

beverages.

unit

for

(max. $4).

Proceeds—For workinjg

capital, loan repayment, sales promotion and equipment.
Office—1035 N. W. 21st Terrace, Miami. Underwriters—
Pierce, Wulbern, Murphey Inc., Jacksonville, and Con¬
solidated Securities Corp., Pompano Beach, Fla. Offer¬

and

advertising company.

outdoor

Proceeds—

Office—414 French St., Wil¬
Underwriter—New York Securities Co.,

selling stockholders.

mington,

Del.

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-

white photographic
film. Proceeds — For equipment and working capital
Office—245 7th Ave., N. Y. Underwriter — Federman
Stonehill
& Co., N. Y. Note —This
registration was
and

prints

withdrawn.

color,

and

black

and

•

Mining Co., Inc.
Feb. 28, 1962 filed 900,000 common. Price—$1. Business
—Mining. Proceeds—For equipment and working capi¬
tal. Address—Creede, Colo. Underwriter—None.
PMA

Insurance Fund Inc.

April 8, 1963 filed 200,000 common. Price — Net asset
value plus 4%. Business—A new mutual fund specializ-

World

Russell Mills, Inc.

(8/26-30)

•

capital

amend¬
athletic
children, and

clothing,
woven
new

knitted

goods,

cotton cloth.

sleepwear

for

.Proceeds—For loan repayment, and

equipment. Address—Alexander City, Ala. Under¬
& Weeks, New York. Note—This

writer—Hornblower
company

formerly was named Russell Manufacturing Co.

and

surplus. Office—609 Sutter St., San
Sons, Baltimore.

United Aircraft Corp.

-10, *.1963

filed

tion by

stockholders

of 4Y2 % : subordinated..
1988 being offered for subscrip¬

$42,884,700

debentures due Aug. 15,

the basis of $100 of debentures
held of record Aug. 5. Rights

for each 15 common shares

will

Price—At par. - Business—Manu¬
engines, propellers and aircraft.
repayment. Office—400 , Main St.,

expire Aug. 20.

facture of aeronautical
East

Sept. 28, 1962 filed 300,000 common. Price—By
ment (max. $12).
Business — Manufacture of

Insurance Co.

Life

Francisco. Underwriter—Alex. Brown &

Proceeds—For
•

Outlet

Trans

July 31, 1963 filed 465,000 common. Price—By amend¬
ment (max. $5). Business—Company plans to sell general
life and disability insurance policies. Proceeds—To in¬

July

amendmrat.

ing—Expected in mid-September.
■

Ave"!; Portland, Ore. Underwriter—None.

crease

•

P^-By

-h

ice retail

v •■

activity measurement; production of^ra
and the furnishing of consulting and radiation measure-

■.

;

common

/ shares* and one. wair

'.'•A-r

-//r/' /"

.4-

■A;,:1:

May l, 1962 filed 200,000 common, of which 100,000 are
to be offered by company and 100,000 by stockholders.

/3-6)
■*'

/
"

-■*"

Inc.

Top Dollar Stores,

0®//'/

n *
Inc.

v;-'

Inc.

;

Underwriter—Amo-

July 27^1962. filed 3)3408 common. Price—$3.50. Busi¬
ness—Operation of - a plahf; producing plastic film and
packaging / products. M Proceeds^-For working capital.
Address—Elsa, Texas. Underwriter—To be named. Of¬
fering—Indefinite. ®" /■/. '•/'
''/■'/ •
V'

ahd^l^^di^te^t^se^ Office—801
Underwriter-

Recreation Industries, Inc.

Proceeds—For investment, in U. S.
and in new subsidiary. Office—801

Lafayette Life Bldg., Lafayette, Ind.
sand Inc. (same address).
• \v •

SixteenthAm, .South Nashville, Tenn.

Underwriters/

company.

Government Bonds

i^Scis^ofk

July 26, 1963 filed $15,000,000 of first mortgage bonds:
due 1993. Proceeds—For construction and loan, repay-.

filed 48,500 common. Price—$100. Businesa
holding company which plans to organize a life in¬

surance

Underwriter—None.^ghe^i

Milwaukee.

Jan. 21, 1963

Pro¬
BisProvident. Management Co,

plus 8%%v Business—A new mutual fund.
ceeds-1—For investment. Office—316 North Fifth St.,

Ave.,

Tecumseh Investment Co., Inc.

rriarck, N, J^.ilnderwriter -y. .® .
./(sarnie address).:y
;;;://;:;-• /v. • ■
;;
filed 312,465 coriiihon being, .offered for /
subscription by stockholders on* the basis of one nqw .; / Recording Industries;.Corp. (9/16-20)
Share for each IY2 held of record July 31. Rights will
July 19, 1963 filed 297,000 .common. Price—$5. Business
expire Sept. 7. Price—$2. Business—Writing of general... ^-Company plans to engage 'in the recording and manlife insurance.
Proceeds/-For expansion. Office—1840
^
o
ufacture of phonograph records, and the publishing
of
Far well

(9/3)

Price—$5 Business—
Company develops .and sells, teaching machines ex-,
clusively for Grolier Inc. Proceeds—For loan repayment^
and other corporate purposes. Office—221 San Pedro,
N. E. Albuquerque. Underwriter—S. D1. Fuller & Co.,

—5455 Wilshire

North

Angeles. Underwriter—None.

Teaching Machines, Inc.

April 1, 1963 filed 150,000 common.

common.

urn

Mortgage Investment Trust

Sutro
Feb.

March 26^ •' 1963

i'K

Fund, Inc.

& Farnham Foreign

July 1,1963 filed 1,000,000 capital shares. Price—Net asr
set value. Business—Company was recently formed and
will succeed to New York Capital Fund, Ltd., a Canadian

•

natural

j» Northern States Life Insurance Corp*, r. ;

Roe

Lands,

Fund,

Price—$25. Busi¬
ness—Purchase and sale of real property, chiefly un¬
improved land* Proceeds—For debt repayment, and ac¬
quisition of - additional properties. Office—-195 Nassau
St., Princeton, N. J. Underwriter—None.

. .

Research

March 28,. 1963 filed 40,000

j;/

St., Chicago. Underwriter—None. -

Mich. Underwriter—Farrell
'

new

Stein

•

—/New World Distributing Co/.,
;'®^vi;:7/' JT'-'"/

Corp. Ltd.

equipment,, and working capital.

St., Flint,
Co., New York.-

—

hair pieces. Proceeds—

products and working capital. Office—328 S.
Beverly Dr., Beverly Hills, Calif. Underwriter—Samuel •
B. Franklin & Co., Los Angeles. .!
v®
y

For

Leith

21, 1963, filed 250,000 common. Price—Net asset;
value plus 8^2%. Business—A new mutual fund. Pro¬
ceeds—For investment. Office—4680 Wilshire Blvd., Los

Bldg.; Cleveland, Ohio. Under- /
Co., Cleveland, j Offering — In¬
'
®
1

de^;

Power Cam t5orp»-*-/-//:/;-'.®

Feb.

McDonald. &

•
Squire For Men, Inc. (8/26)
July 9 1963 (»Reg. A")^$135,000 of 8% convertible
i
h.jJ
j.._
1 n^n
t aa —/a-mov
beritures
due
1969. Price—^t
par
($100). Business

'iq'.tepay. advances from parent, A. Tr& T,; and for pthdr
Jan. 28;T963,-. filed 200,Q00 capital shares. Price—$4.75.
corporate purposes.;Qffice;(•%.; 185:;J&ankIih;/St^/3$?ton/v/J&usmess^
Underwriter—None; v t;V-/
/; g* ;.
•'/*/'• /^///®.®/.."//_* brake unit for heavy duty automotive vehicles. Proceeds

—

definite.

July 6, 1962 filed 1,001),000. shares of beneficial interest.
Price—By amendment (max. $5). Business—A real estate
investment trust. Proceeds—For investment. Office—880

ofj;ecord Augv
Sept. 23. Price—By amendment. Proceeds^

will expire

Price—$15. Business
Proceeds—For

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

Properties

Manufacture and sale of custom

Potomac Real Estate Investment Trust

Phoe-

19; 1962 filed 215,000 shares of beneficial interest.
—
A real estate investment trust.
investment and working capital. Office

Oct.

Philippines. Underwriter—None.

Shaker

..Undter-

—

share for each 12 held

one new

•

V • - V
shares to be of¬
fered for subscription by U. S. resident stockholders on
the basis of 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 repaympnt.. ariH
onpratinpf pvnpnsps. Address
Manila. The
Manila,
ment,
and operating
expenses. Address

^Isf*'

Underwriter—None.

aix.

®;-np.

unsub¬

Remaining 94,822 and any

corporate purposes. Office—830 N. Central Ave.,

Business

Development Co./ Inc.

Aug;1, 1963 /filed' 2,099,857 capital sharpsto; be -offered ^
for subscription by cbmmqn stockholders on the basi$of;
I

Coi (8/^7>®;^^

England telephone & Telegraph

New

— •

held.

$6; to stockholders, $5. Business—Company plans to "engage in the consumer- finance, mortgage,v general fi¬
nance and related
businesses. Proceeds — For general

June

Campbell Island Mines Ltd.
i ®
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¬
ment and mining. Proceeds—General corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—
A. C. McPherson & Co., Toronto.
i
v ; ;
<
®

Corp.

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

Beryllium Corp. ®/c

Price—$5._
28,1962"-fiiedJi0O,O9O cominqm/Pj:

Life

Selective

— —

Philipptnd
Oil Development i
11, 1963 filed 325,000,000 capital

'
Price—$5.

New

iv;v

■

operations, debt repay¬
and operating expenses. Office—1218 N. Central
Phoenix. Underwriter—None. '*" " •
** • ;

writer—Td be -named

!®

's.-.Jl"'

■

corporate purposes.-; Office^39 Broadway, N. Y.

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

•

—Company -plans, to. mine- for beryl _<
proceeds..—- For.., debt, repayment, equipment, and. other

l—For.

r '■

-rr*

«.

(9/3-6)

Natural Gas & Oil Producing Co.

Sept; 7, 1962 "filed 180,000 class A Common.
Business—Production of natural gas and oil.

■».... '

Pan American

Feb.

U^(ler.(samef; address);.^

bffering:will be made only in the State

Notfe—This

^For Wichita, .Kan*
Hydraulic,

—

'J-

property/ Proceeds—For-mining

®;®/,>®; ~
amount certificates
shares. Price—For cer¬

poses,:

Financial

ate, on the basis of 4 company shares for each class A or
B share and two-thirds share for each class C share of

—

28,' 1962 refiled $8,000,000 face

Dec.

address}.'/;®/®/®

July 24, 1963.. filed'100,000 common. Price—$1.50. Busi¬
ness
Company plans to explore,
iron deposits
on its
f
''.L.•
'
Jl -_1a J.

poses.

Selective

/ Feb.; 28, 1962 filed 500,000 common, of which 405,000
are to be offered for subscription by holders of the A,
B and C stock of Selective Life Insurance Co., an affili-'

Pacific Mines "Inc.

insurance concern.

National Mortgage Corp., Inc.

Inc. (same

Fund Management

ment and to

ing in insurance stocks. Proceeds—For investment. Ad¬
dress U-r Plankington Bldgl,! Milwaukee. Underwriter-

Oct. II,

(665)

Financial Chronicle

loan

Ripley &

Hartford, Conn. Underwriter—Harriman

Co., Inc., New York.
United

Investors Corp.

(Minn.)

July 29, 1963 filed $500,000 of 6% convertible debentures
due 1973 to be offered for subscription by stockholders
'
:

Continued

page

'''

The Commercial and Financial Chronicle

(666)

Continued from page.41 ""v; s^z/^

./. Thursday,

August 15, 1963

ture. of preeision; cathode - ray oscilloscopes. Proceed^- :
worKing capifel and other corporate purposes. Un--)'^

For

•

basis.:

unlimited

Price

—

par.

Business—"

■

for United Investors Fund Corp. (a
sells mutual funds) and United
V- Capital Life Insurance Co. of Minnesota. Proceeds—To
increase capital and' surplus r of United
Capital "Life".
broker-dealer

which

•

wMIt"'Kjra-

Effective

•

A holding company

derwriter-^Lehmari Brothers, New York.

»'V/

;

":.ic U. S.-'Co»itrols,;Jnc.ii':'';;//,/::/•//// ./'/'
.Aug. 8,1963 filed $210,000 of 6%% debentures due 1973.
The following registration statements were de¬
and warrants to" purchase 31,500 shares to be offered
fort
clared effective this week by the SEC, Offering
public. sale/in units of one $100 debentures and l5 war>u ;;. / /
/rants. Priee^-$100 per unit. Business—Development and
details, where available* will be carried in the
manufacture of heating equipment and automatic control
t
Monday issuedtf iih&WChronicl- Jy^'pr t* '/' systems/' Proceeds—For inventory; "sales promotion, note " vi /
prepayment^and working'capital; Office —: 410 Fourth 7 '
.

Insurance Co. of Minnesota. Address—1300 First National

•*T;-v

Bank Bldg., Minneapolis. Underwriter—None.

;

Saran & Plastic Corp. Ltd.
Z ' :•/;/* /;•;'?
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 i office-;
furniture. Proceeds ~ For general corporate purposes.;
i
Address—Rehovoth, Israel. Underwriter—Brager & Co.,New York. Offering—Indefinite.;
: }
/•
.

United

Feb,

25,

—

;

/•';
*

Ujvestment. Office—20 W. 9th Street, Kansas City,
Underwriter—Waddell, & Reed, Inc;, Kansas City,
V'

•

Z-Z

Mo
Mo

units- of

share of

one

one new

■

■' 5

y''
1

•

■

r?* r *.

ATTENTION UNDERWRITERS!

five held of record AugM7Z Rights will expire
Sept. 2, No underwriting is involved. / //.
} //
*

312,465

Do you have

Co.*>•;'";.:; ->/'/•?-V/

an issue you're planning to register?;
Corporation; News .Department would like ;
"an item.;A-;
those ypu'll find- her^h^r^ v./

Our

to know about it so that we can prepare

Would

you i

telephone

:us

REctor

2^9570

rr,.;.

'V 1

*»

write

at 25 Park Place, New York 7, N.

being offered for subscription by stock¬
holders at $2 per ^share on the basis of one new share for
each 1% share held of record July 31. Rights will expire
Sept. 7. No underwriting is involved;

common to.,
class. Price—

each

;v";• j.'.;A;Vf

for each

Urethane of Texas^inc;^-/
F^b/14.;1962 filed 250,000 class A and 250,000

be offered

at; $18^er sharCofr the basis of

•;

Northern States. Life Insurance Corp.. „>

;■//

holders

;

$50,000,OQO bf notes dtie" Aug. ly 1985, offereciVat par and,
accrued interest by First Boston Corp., and
Kidder, Peabody & Co., Inc., New/ York. '
'
'
'

r
*'

-/j
%/;
/ 31,070 commbn being offered for subscription by stock-:-

Commercial' Credit

United Variable Annuities Fund, Inc.--;///•/
Aaril 11, 1961 filed 2,500,000 shares of stock. Priee—$*0/
share. Business—A new mutual fund. Prwceeds—For
-

•

;Ave.t;Br0OkIyn;vN^^^
VInc^/Neiw York^£//
American Mortgage Insurance Co.] ^

•

common

($5.05

unit.
Business—Manufacture of - urethane
Proceeds—For-; equipment^ i working J capital,
leasehold expenses and other corporate purposes. Office
><—2300 Republic National Bank Bldg., Dallas.
Underper

Roadcraft

«rioams.
^
,

writer

Manufacturing & Leasing Corp*

100,000 common offered at $12 per
Jackson & Gray, Inc., Los Angeles.

Rutner,

• Atlantic Coast Line RR^(9/17P
Aug. 12, 1963 it was reported that this road plans to
sell $20,000,000 of first mortgage bonds due 1988 in
September; Proceeds—To refund $8,100,000 of bonds ma- '
turing June 1, 1964, and for working capital. Office— ;
220 E. 42nd St., New York. Underwriters — (Competi-;
tive). Probable' bidders:- First Boston Corp.; Halsey, |*
Stuart & Co. Inc.; Morgan Stanley & Co.; Eastman/
Dillon, Union Securities & Co.; White, Weld & Co. Bids//
—Expected Sept. 17 (12 noon EDST)', at above address.

First Nebraska Securities Corp., Lincoln, Neb.,
Offering—Temporarily, postponed.
/
"

^ Valley Investors, Inc.
/Jan. 23, 1963, filed 328,858

•

—

-3—A

mutual

new

fund.

Issues Filed With SEC

Price—$1. Business;

common.

Proceeds—For

investment.

Ad-

dress—Sidney, Montana. Underwriter—To be named.

•

Warwick Fund
June

,-/■

/•/ Bethlehem Steel Co.

17*1963 filed 300,000 units of participation in the ^

Fund to be offered in exchange for certain acceptable}
securities

the basis of

unit for each

one

$100 of de-;.

•

posited securities.. BusinessA new exchange/type/
fund which-plans to continue
indefinitely "to *
exchange its units for additional contributions of secu¬
rities,' and to seek long term growth of capital and in- /
; come. Office — 3001 Philadelphia Pike* Claymont, Del. '
/-Distributor—Wellington Co., Inc.,-Philadelphia.
:
mutual

Waterman Steamship Corp.
V ;
Aug. 29, 1*961 filed 1,743,000 common. Price—By amend-,
ment.
Business—The' carrying of liner-type cargoes
;; Proceeds—For the purchase of vessels, and
working cap-'
/ Ital. Office—71 Saint Joseph St., Mobile, Ala. Z Underwriter—Shields & Co., Inc.r NZ Y, Note—This registra-.
.

tion will be Withdrawn.

Jan. 17, 1963

("Reg; A") 245,000

Business—Company plans to

common.

erect

Price

—

mill to produce certain types of iron by the new "Taylor .Process." Proceeds

sus¬

International, Inc.
March 29, 1963 filed $4,000,000 of 614% subordinated
debentures due 1983, and 400,000 common.; Price—For

debentures, at
will take
.

York

for stock $3.50. Business—Company
and operate Western Union Telegraph's

Juna 26/'T963/ it^^

•

Winslow

—Design

filed

and

electronic

■;

;

Electronics, inc..

1961

125,000

manufacture

held. Price—$12.
Business—Writing of fire,
marine, casualty and property insurance. Proceeds—For
general' corporate purposes. Office—1511 K
St., N. W.,
Washington, D. C. Underwriters
Ferris & Co., and
Rouse, Brewer, Becker & Bryant, Inc., Washington, D, C.

•©*ds—For

v,.

test

electrical

and

equipment.' Pro-

debt

repayment and other corporafp pur¬
poses. Office—1005 First Ave.,
Asbury Park, N. J. Underwriter—To be named.
•

Wolf Corp.

Jan. 26, 1962

filed

be offered

stock

class

Real

estate.

for

subscription by stockholders of class
the basis of $500 debentures for
each 100

held.

Price—$500 per unit.
Proceeds—For debt repavment

Business-

and realty
acquisitions. Office—10 East 40th
St., N. Y. Underwriter
—S. E. Securities,
Inc., 10 East 40th Street, New York
Note—This registration will be
withdrawn.

Wyomont Petroleum Co.
May 10, 1963 ("Reg. A") 120,000 common.
Price—$2.50.
Business—Production and sale of petroleum
Proceeds

For

products.

debt

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.

order temporar¬

/.•. '

;

ment
-

expenses. Address—Port

Underwriter—None.
★ Sprague

Electric

Co.

Chicago Burlington & Quincy RR.

(10/X)
announced tentative plans to

May 20, 1963 the company
;
sell $5,000,000 of equipment trust certificates in October. :Z
Office—547 W. Jackson Blvd., Chicago.

/" 1

—

•

Communications Satellite Corp.

Feb.

20, 1963 it

tion

have

Manufacture,

D,.

electronic

and

and F.

Adams, Mass. Underwriters
S.

—

St.,
First Boston Corp.,

Moseley & Co., New York.

★ Summit National Holding Co.
Aug. 9, 1963 filed 150,000 common. Price—$12. Business
—Company plans to buy all the outstanding stock of
Summit National Life Insurance
Co., organized in Feb¬
ruary 1963 in Ohio as a legal reserve life insurance com¬
pany.

Proceeds

& Co.,

(max.

•
•

common

than

$100

per

the

company

for

the

graph,

half

carriers,

the

with

company's

the
total

■

provision that
shares can be

share. Business—Congress has authorized Z
to provide satellites and ground facilities

international

television

transmission' of

and

other

telephone,

communications.

tele-

Office—

3029 Klingle Rd., N. W., Washington, D. C. Underwriters
—To be named. Note
Leo D. Welch, Chairman, has

★

Price—By amendment

of incorpora- Z

in Washington,
shares, without par

company,

munications

Inc., Cleveland.

Tektronix, 5nc.
Aug. 9, 1963 filed 540,000 common, of which 100,000 are
to be offered by
company and 440,000 by stockholders.,

papers

be
Issued to the public, firms that produce space exploration
equipment and other non-communications con¬
cerns.
Series II will be issued to FCC-approved comno

For

Underwriter—Fulton, Reid

this

for

held by these carriers, and no individual or group may
hold over 10% of the remaining 50%. Price—Maximum

investment in above stock, and
working capital. Office—2003 West Market
St., Akron, O.
—

reported that

was

been filed

Company's common voting
value, will be divided into two series. Series I will

electrical circuit components.
Proceeds—For debt repay¬
ment, and working capital. Address — 87 Marshall
North

Price—By amend-'

Columbia Gas System, Inc. (10/3)
;// ---^ C
"
May 6, 1963/the company stated that it plans to sell / "
/ /
$25,000,000 of debentures in October to raise money
for construction. Office; — 120 East 41st Street, New":
York.
Underwriters
(Competitive).
Probable bidders: 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 Brothers-Salomon Brothers & Hutzler. / //
Bids—Expected Oct. 3.
/
/ / --

Arthur, Ontario, Canada.

sale

Underwriters—
(Competitive),/"Probable bidders: Salomon Brothers & t"/'
Hutzler; Halsey, Stuart &. Co. Inc.)/ Bids—Expected c;
October 1 (12 noon CDST) at above address.
T:/'.v/
//'/-'

(8/29)

and

='//•/>; ;/"/•-

Aug. 9, 1963 filed $15,000,000 of sinking fund debentures
dhe Sept. 1, 1988. Price
By amendment. Business—
distribution

bidders: Salomon Brothers & Hutzler; Halsey, Stuart &
Co. Inc.
' ■*.'■*;/'/'
''•••■' ;//■'■ <-.*

(max. 30 cents). Business—Gold prospecting. Proceeds-^-For debt repayment, construction
of a mill and

mining

;

—

$4,500,000 of 6.5% convertible sub¬
ordinated debentures due 1977 (with
attached warrants)
A

★ Safawd Gold Mines Ltd.
Aug. 9, 1963 filed .1,000,000 common.

Price—$4. Business

pie^ision

measuring devices and

'/<:.•/

€a~olira

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 r
a. total
$10,305,000 issue. Address — Terminal Tower, r
Cleveland, O. Underwriters — (Competitive)/ Probabler

—

common.

was;^^reported/ikM^the/eompan^^

Freight Carriers -Corp.-v(8/L51 •/
-July 5, 1963 the company applied to the ICC for permis■»
sion to offer 100,000 common. Of the
total, 24,000 willProcessing and
Books; Inc./parent. Office—4224 West Chicago Ave., Chi-/ be sold by the company and 76,000 by stockholders. Priced ;
cago.
—By
amendment.
Business
—
A
motor
freight carrier/ /
Underwriter—Hemphill, Noyes Sc Co., New York.
operating in 13 states from Mass. to Florida. Proceeds— '
★ National Union Insurance Co. of Washington
For working capital. Address—Cherryville, N. C.
Aug. 12, 1963 filed 64,000 common to be offered for sub¬
Un-//.
derwriter—The Ohio .Co., Columbus.
scription by stockholders on the basis of 1.78 shares for
"

—

Dec. 28,

^
://v

—

York, Inc.

'•

$5,000,000 of convertible bonds in the U/ $/ Busi-f / •
* /
Manufacture of cameras and other photographic ;/
•; ///
equipment. Proceeds—For expansion. Address—Tokyo,./ ' •
Japan. Underwriter — Yamaichi Securities Co. of New
ness

—

■

f; /
> /;

to sell

telegraph operations. Proceeds—For sell-/;,
k O'Malley Investing Corp.; ^
ing stockholder, Western Union Telegraph Co., parent.
Office—60 Hudson St., New York. Underwriters—AmeriAug. 9/ 1963 filed 300,000 common. Price—$10. Business
—A' real ■' estate investment and
fiCan
Securities Corp.,; and Glore,' Forgan &
development company.
Co., NewYork. Offering—Indefinite.
Proceeds—For investment. Office—1802 N. Central
':
Ave.,
Phoenix/Underwriter
O'Malley
Securities Co. (same
William Penn Racing Association
address).
March 8, 1963 filed $1,000,000 of
614% sinking fund de★ Rogers Brothers Co. (9/9-13)
bentures due 1978 and 100,000 class A
/'/g'/ //;/
non-voting com¬
Aug. 7, 1963 filed 105,458 common, of which
mon shares to be offered in
units of one $100 debenture
70,000 will '
be sold by
and 10 shares. Price—$220
company and 35,458 by a stockholder. Price— \
per unit. Business—Company
By amendment (max. $18). .Business
has been licensed to conduct harness
Processing of
racing with paripotatoes; and the raising of high grade
'mutual/betting. Proceeds
For debt repayment and
pea,/bean and
sweet corn seeds. Proceeds—For
/working capital. Office—3 Penn Center Plaza, Philadel¬
working capital. Ad¬
dress—P. O. Box
phia. Underwriter—Stroud & Co.,
2188, Idaho Falls, Idaho. Underwriter—;
Inc., Philadelphia
Dean Witter &
Offering—Indefinite.
Co., Los Angeles.
./>■/.'////*. 1
5

•/

;

g;// g V}/ /r; •/

Canon Camera Co.*/-•;

Company plans to* engage in various phases of the fi¬
business,, with the exception of securities trading.
Proceeds—For investment/executive salaries and work-/
ing capital. Office—450.Seventh Ave., New York. Under¬
writer— Kordan & Co., Inc., New York. ;
•
/ ■ ★ HawthoTrt-Mellody, Inc. (9/9-13)' /
/'
Aug. 7, 1963 filed 497,500 common. Price—By amend- ;
ment (max, $25)/
Business—Processing grid ^distribution -

each

;

par;

over

international

the program/will; be generated dnt^ihaUy/ahd^the
ance secured. externally. > Mr. Homer
added that /this /
would not be required until at' least 1964. Office — 25 V
Broadway, New York. Underwriters—To b0 named/ The.;
last public >sale of securities: in May,; 1955;
by/Kuhn//Loeb & C6^ and Smith, Barney
Co.//^wn

;

—

pending this issue.
*. Western Union

program to be completed by 1965;i / He
that,approximately two-thirds of the financing io^V^//

said

of milk, ice cream and other
dairy foods'hT'^ChiCago area.
Proceeds
For the selling stockholder,

-i-rFor .plant construction and general corporate pur¬
poses. Address—Suite 412-413 Hynds
Bldg,^ Cheyenne,
IvWyo. Underwriter—C. B. Hoke Agency,
Cheyenne, Wyo.
Note—The SEC has issued an order

temporarily

-jt...

improvements

nance

Western Steel, Inc.

Feb; 26, 1963, Arthur B. Homer, Chairman/ announced/:
that the /company^ vyill/embark^
a/ $7$d»OjEK)iO<Hl^a|?ite|^

★ Aileen, .Inc. .(9/10)
>://■/■ .;•/
Aug. 9, 1963 filed 200,000 common, of which 100,000 will
be sold by. company and
100,000 by stockholders. PriceBy amendment (max. $25). Business—Design, manufacture and distribution of popular
priced sports and casual
wear
coordinates for women' and girls. Proceeds—For
plant expansion; Office—29 West 38th SL, New York.
Underwriter—Good body & Co., New York/-;"--'/" •

★ Gary-Capital Corp./A?// /•; ••/.'
///>/:.;;:////
Aug. 8, 1963 filed 60,000 common. Price—$10./Business-

;

/-/-v/Z

r;;

—

announced

tha^ the company hopes to make

offering of its stock

1964."

$25). Business—Manufac-

"not

later

■
•
.

•
,

than

the

a public
early part of *.

Volume

Number 6290

198

bonds

Connecticut Light

& Power Co.
4, 1963 it was reported that the company is con¬
sidering the issuance of about $25,000,000 of bonds in
late 1963.
Proceeds—For construction.
Addtess—Sel-

Atlanta.

bonds. The request has been opposed by a major underwriter who wants the bonds to be sold at competitive

X
'

•

Consolidated Edison Co. of New York, Inc.
May 22, 1963 the company stated that it will have to
raise approximately $800,000,000 through the sale of
securities, to finance its five-year construction program.
In addition, it will have to refinance $52,000,000 of
maturing bonds in the period ending 1967. Office—4
Irving Place, New York. Underwriters—To 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.
"

Consumers. Power

Hutzler-Blyth &

Co.-Lehman Brothers-Merrill
Pierce, Fenner & Smith Inc. (jointly).

an
,

,
~

100,000

common.

Office

—

Moonachie

Ave.,

First National Bank of Toms

;* July 24, 1963 it
-

Carlstadt,
\^

;

Florida' Power..;Corp.
March 12, 1963 the company

stockholders,
.

sometime

South,

St.

expire

^y.<

announced plans to offer
1963, the right to subscribe

Petersburg,

Fla.

Underwriters—To

named, The last rights offering in May 1959 was under¬
written by Kidder, Peabody & Co., and Merrill

Lynch,

Pierce, Fenner & Smith, Inc., New York

Foote, Cone & Belding, Inc.
June 18, 1963 it was reported that the company is con¬
sidering the public sale of about 25% of its stock. Busi¬
ness—Company is one of the leading advertising agen¬
cies in the U. S. with 1962 billings of about
$130,000,000.
Office—247 Park
Ave., New York. Underwriter—To

;
'

be named. It

reported that negotiations are being
conducted with Merrill Lynch,
Pierce, Fenner & Smith
was

Inc., New York.
General Aniline & Film Corp.

April 3, 1963 Attorney General Robert F. Kennedy

nounced

;

•'

that

the

an-

Justice

Department had reached an I
out-of-court agreement with Interhandel, a Swiss hold¬
ing company, designed to settle the 20-year old dispute
over control of the 540,894 class A and
2,050,000 class B
shares of General Ahiline
seized; by the U. S. Government

1942

German assef

The stock

represents

88% of the voting control of the
company. Mr. Kennedy
said that if General Aniline should be sold for

$200 mil-

lion, the Government would

®nd Interhandel about $6Q million. The

receive, about

1963

$140 million

settlement terms,
approved by Interhandel stockholders, also;
must be approved by the U S. District
Court at Wash-

recently

ington, -D. C. Business—Company is a leading domestic;
producer of dyestuffs, chemicals and photographic ma¬
terials. Office—11] 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.

Kidder, Peabody & Co. - Salomom
(jointly); First Boston Corp.-Glorew
Forgan & Co. (jointly); Halsey, Stuart & Co.; Harrimana
Ripley & Co.; Blyth & Co.
Norfolk & Western RR

Jersey Central Power & Light Co. (10/15)
June 12, 1963 company announced plans to sell $9,000,000
dress—Madison Ave., at Punch ,Bowl
N. J. Underwriters — (Competitive).

Georgia Power Co. (11/7)
Jan. 22, 1963 it was reported that this
subsidiary of The
Southern Co., plans to sell $30,000,000 of first
mortgage

Rd., Morristown,

Probable bidders:

Stuart & Co. Inc.; White, Weld & Co.; First
Boston Corp.; Eastman Dillon, Union Securities & Co.°<alomon Brothers & Hutzler-Merrill Lynch, Pierce, Fen¬
ner
& Smith Inc;
(jointly); Kidder, Peabody & Co.;
Harriman Ripley & Co. Bids—Expected Oct. 15 (11 a.m.
Halsey,

EDST) at 80 Pine St., New York. Information Meeting—
Oct. 10 (10 a.m. EDST) at same address.
Louisiana

Power &

Light Co.
reported that this subsidiary oi
Utilities, Inc., may issue $25-$30,000,000
of bonds 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.-Harriman
Ripley & Co., Inc. (jointly); White, Weld & Co.-Blyth
& Co., Inc.- Shields & Co.;(jointly); Halsey, Stuart &
Co.
Inc.; First Boston Corp.-Glore, Forgan & Co
(jointly); Salomon Brothers & Hutzler-Eastman Dillon
Union
Securities
&
Co.-Equitable
Securities
Corp
Feb.

1963

20,

Middle

was

South

(jointly)..

v.•

\;y

.<•.

Massachusetts Electric Co.

v;:

St., Roanoke, Va. Underwriters—(Competitive). Prob¬
able bidders: Halsey, Btuart & Co., Inc.; Salomon BrO^
& Hutzler.
Bids—Expected Sept. 9 or 10 (12 noom

;ers—(Competitive). Probable bidders: Halsey, Stuaft>:
Co., Inc.; Salomon Bros. & Hutzler.
Bids—Expected
Dec. 10 (12 noon EST),
:•
-

Northern States Power Co.

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. S. and abroad. Underwriters—Kuhn,
Loeb & Co., Inc., and First Boston Corp., N. Y.

(Minn.)

May 14, 1963 it was reported' that the company plans'to
offer about 771,110 additional shares to stockholders om
a l-for-2Q basis,in 1964, to raise an estimated $25>000,000Office—15 South Fifth St., Minneapolis. Underwritei;—r

offering in July 1959 wa®
Merrill Lynch, Pierce,tFenner V Smith"
Inc., New York.
\
V v'. :'■•-;
,•
.-v"Otter Tail Power Co.
"
Jan. 16, 1963 it was reported that this company plan®
to sell $10,000,000 of bonds in the fourth quarter. Office
—215 South Cascade St., Fergus Falls, Minn. Under¬
writers— (Competitive). Probable bidders: Halsey, Stufr*
& Co. Inc.; Blyth & Co. Inc.; Glore, Forgan & Co.-Kalr
man & Co. (jointly); White, Weld & Co.
'A
To be named. The last rights

underwritten by

•

.i-

■'

Pacific Telephone & Telegraph Co.
June 19, 1963 the company stated that it will need
million of new money in,the years 1964 through 1966>to

help finance its $1.3 billion construction program. This
means that the company must sell about $217 million ,og
securities a year, it was stated. Office—140 New Mont-r

St., San

gomery

Francisco. Underwriters—To be named-

The last issue of debentures

Feb. 16, 1960 was under¬

written by Halsey, Stuart & Co. Inc. One
the issue was tendered by Morgan Stanley

other bid oa
& Co.

Pennsylvania Power & Light Co.
March 18, 1963 the company

$75,000,000
Proceeds
000.000
lasc

of bonds in the period 1963 through 1967.;
For construction and the retirement of $8,-^
maturing bonds.
Office—9th and Hamilton*

Underwriters—To be named. Th®

Nov. 29, 1961 was won at com¬
White, Weld & Go., and Kidder,,
Other bidders were Halsey. Stuart &
Inc.; First Boston Corp.^Drexel & Co. (jointly).
; .
sale

of bonds

petitive bidding
Peabody & Co.
Co.

stated that it expects to selB

—

Sti,., Allentown, Pa.

Jan.

16,1963 it was reported that this company plans tc
sell $10,000,000 of bonds in the fourth quarter/Office—
441 Stuart St., Boston. Underwriters — (Competitive)
Probable bidders: Halsey, Stuart & Co. Inc.; First Bos¬
ton Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.;
Eastman Dillon, Union Securities & Co.; Kidder, Pea¬
body & Co.; Blyth & Co.-White, Weld & Co. (jointly)

i Northern Pacific Ry.
(12/10)
-a
July 2, 1963 it was reported that this road plans to sell
about $4,800,000 of equipment trust certificates in De¬
cember.* Office—120 Broadway, New York, UnderWrit-

of debentures due 1988. Proceeds—^For construction. Ad¬

EDST) at the company's Philadelphia office.

Rd., Morristown, N. J. Underwriters — (Competitive).
Halsey, Stuart & Co. Inc.; White, Weld

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
Meeting—Sept. 26 (10 a.m. EDST) at sam£ address.

(9/9)

July 2, 1963 it was reported that this road has scheduled!
the sale of about $6,900,000 of 1-15 year equipment tru^t
certificates for September.
Office—8 North Jeffersppi

•

Probable bidders:

Sc Co.; First Boston Corp.; Eastman Dillon, Union Secu¬
rities & Co .-Salomon Brothers & Hutzler-Merrill Lynch,

bidders:

Brothers & Hutzler

company

V"'",' 'Jersey"Central: Flower' & Light Co. (LO/1)
July 16, 1863 the company announced; plans to sell $18,525,000 of first mortgage bonds due 1993. Proceeds—For

Probable

reported that the

was

construction and refunding of outstanding 5%% bonds
Address — Madison Avenue, at Punch Bowl

for about 457,265 additional common shares on a l-for-20
basis. Proceeds—For loan repayment. Office—101 Fifth

St.,

16,

due " 1990.

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

:>?

the bank is offering

New York, Chicago & St.

Light Co.

Japan (Government of) ;,V
i
May 1, 1963 it was reported that the Government plans
to sell an additional $35,000,000 of external loan bonds
In the U. S. during the fiscal year ending March 31,1964
It is expected that the majority would be sold by Dec
31, 1963. Underwriter—First Bostojx .Corp., New York.

its stockholders the right to subscribe for an: additional''
24,000 common shares on the basis of one new share
for each 19% held of record June 26. Rights Will

Bids—Expected Nov. 19.

River, N. J.

was reported that

I, Brothers; Merrill Lynch, Pierce, Fenner & Smith Inc^

Office—1130

plain
to sell $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
Jan.

issue

additional $8,000,000 of common stock.

Iowa Power &

Price—By amendment (min. $5). Busi¬

Underwriter—Allen & Co.. New York

Telephone Co.

working capital, debt repayment and advances to sub-

f. sidiaries.
■

Lynch,
V"' V'UV?

ness—A motor vehicle common carrier operating iri nine
eastern states from Vermont to Virginia. Proceeds—For

-V
♦

company

;

Louis RR (9/11)
;*I'.
July 30, 1963 the company announced plans to sell $6,—
;
540,000 of 1-15 year equipment trust certificates in Sep—
International Milling Co.
\ tember.; Address — Terminal Tower Bldg., Cleveland..
July 8, 1963 the company announced that it expects to
>t1 Underwriters—(Competitive). Probable bidders: Halsey^
file a registration statement covering its first public
i.Stuart & Co., Inc.; Salomon Bros. .& Hutzler.. Bidsoffering of common stock. The sale will include both a
Sept. 11 (12 noon EDST) at the above address.
primary and a secondary distribution. Business^-ComNew York State Electric & Gas Corp.
pany is one of the world's largest flour millers with op¬
erations in five countries. Proceeds^—For expansion, re-April 3, 1963 it was reported that the company plans fo
search and debt repayment. Address —1200 Investors
sell $20,000,000 of debt securities to finance its construc¬
Bldg., Minneapolis. Underwriter —^ Kidder, Peabody &
tion program for 1964 and 1965. Office—108 East Green*
Co., Inc., New York.
r St.,
■ :/y
Ithaca, New York. Underwriters — (Competitive)-

^Morgan Stanley & Co.; Stone & Webster Securities Corp.

Honolulu. Underwriter—Kidder, Peabody &
Co., New York.

Duke Power Co.
•April 22, 1963 it was reported that the company has ten¬
tative plans to issue $50,000,000 of first mortgage bonds
In the first quarter of 1964. Office—30 Rockefeller Plaza,
New York. Underwriters—(Competitive). Probable bid7/ders: Halsey, Stuart & Co. Inc.; First Boston Corp.;

Eastern Freight Ways, Inc.
Oct. 9, 1962 the ICC authorized the

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 oi preferred,
stock in the fourth quarter. Office—441 Stuart St., Bos¬
ton. Underwriters — (Competitive). Probable bidde^ss:
(Bonds) Halsey, Stuart & Co. Inc.; Lehman Brothers—
Equitable Securities-Corp. (jointly); Kuhn, Loeb & Co.;,
Meirill Lynch, Pierce, Fenner & Smith Inc.-Kidder^,
Vf Peauody & Co.-White, Weld & Co. (jointly); First Bea¬
ton Corp. (Preferred) First Boston Corp.; Dean Wittier
& Co.-Smith, Barney & Co.-Wertheim & Co. (jointly);;
Equitable Securities Corp.-Kidder, Peabod> & Co.-Lecj
Higymson Corp.-White, Weld & Co. (jointly); Lehmaiii

Alakea St,

$26.75. Proceeds—To increase capital and surplus. Office
—801 Leonard St., Corpus Christi, Tex. Underwri er—
Merrill Lynch, Pierce, Fenner & Smith Inc., New York.

Nevada Power Co.
.

Electric

Hawaiian

;

St., New York.

June 2, 1963 it was reported that the company plans to
offer stockholders in October the right to subscribe for

f; of record Aug. 12. Rights will expire Aug. 22. Price—
•

;

★ Corpus Christi Bank & Trust Co. (Tex.)
Aug. 12, 1963 stockholders voted to increase the bank's
capital stock to provide for sale of 37,500 additional
shares on the basis of one new share for each share held
•

Salomon

Light Co.
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 Boston
Corp., New York; Putnam & Co.,^Hartford; Chas. W.
Scranton & Co., New Haven.

f (jointly); Morgan Stanley & Co., Salomon Brothers &

Lynch, Pierce, Fenner & Smith—Lehman Bros.—
Bros. & Hutzler Bids—Expected Oct. 16.-In¬
formation Meeting—Oct. 4 (11 a.m. EDST) at 20 Broadl

Blyth &

Quiv States Utilities Co.

Hartford

Merrill

Co.; Morgan Stanley & Co.; Lehman Brothers. (Pre¬

Expected Oct. 15.

$20,000,000 of straight debentures in the 3rd quarter
of 1963. Off ice—212 W. Michigan Ave., J ackson, Mich.
Underwriters—(Competitive). Probable bidders: Halsey,
"Stuart & Co. Inc.; White, Weld & Co.-Shields & Co.
(jointly); Harriman Ripley & Co. Inc.-First Boston Corp.

;

Co.; Eastman Dillon, Union "Securities & Co.—Kidder*
Peabody & Co. (jointly); Halsey, Stuart & Co., Inc.£

sell

Un^er-

Probable bidders: White, WeldH

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

Co.

April 24, 1963 it was reported that the company plans to

$11,000,000 of first mortgage bonds in October,„

writers—(Competitive).

\M Webster Securities Corp.; Lehman

Jan.

;:5

^ ton. Underwriters—To be flamed.

(10/16)

reported that the company plans to

■;: "C:july 29, 1963 it was reported that the company plans to>
sell about 120,000 common shares in October.
Trans¬
29, 1963 the company announced plans to sell 100,100 shares of preferred stock (par $100) in the second
action is subject to approval by Federal and State reg—
balf of 1963. Office—285 Liberty Ave., Beaumont, Tex ^ ulatory authorities. .Address—Fourth and Stewart Ave.,,
Underwriters—(Competitive). Probable bidders: Stone
Las Vegas. Underwriter—White, Weld & Co., New York..

®
v

was formed in December,
1962, to owii and operate a 500,000 kw. atomic power
v:
plant at Haddam Neck, Conn. Proceeds—For construction
V-of the $70-$80;000,000 plant. Office—441 Stuart St., Bos-

was

Address—Fourth and Stewart Ave., Las Vegas.

Securities

bidding. Business—Company

(Competitive). Probable bid¬

Co.; Eastman Dillon, Union Securities & Co.-Equitable
Corp. (jointly); Morgan Stanley & Co. Bids
—Expected Nov. 7, 1963.

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

—

ferred): First Boston Corp.; Lehman Brothers;

Underwriters

sell about

(Bonds): Equitable Securities Corp.-Eastman Dil¬
lon, Union Securities & Co. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Shields & Co.
(jointly); Halsey,
Stuart & Co. Inc.; First Boston Corp.; Harriman Ripley

St., Berlin, Conn. Underwriters—To be named. The
last
public offering of bonds on Jan. 20, I960 was
handled by Morgan Stanley & Co.-Putnam & Co.-Chas
W. Scranton & Co.-Estabrook & Co. (jointly).

July 29, 1963 it

ders;

den

Nevada Power Co.

$7,000,000 of preferred stock in November.

Proceeds—For construction. Office—270 Peacntree Bldg.,

June

Connecticut Yankee Atomic Power Co.

and

.(667),

Chronicle

The Commercial and Financial

Electric Co.
1963 the company reported that it plans to,
spend $478,000,000 for construction during the five-year
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
.financing, from time to time, through the sale of bond®
and common stock. Office—1000 Chestnut b.., Philadel¬
:

Philadelphia

March

phia. Underwriters—To be named. The last sale of bond®
Oct. 15, 1959 was handled by Morgar
Stanley Sc

Co-,

and

Drexel &

Co.

Other bidders were:
Continued

Halsey*
page

The Commercial and Financial Chronicle /;:.--Thursday, August-15,

(663)

information 'oh/stock' and commodity- market action of
selected issues. Proceeds—For working capital. Address

Edison

■

last

The

California

Stuart
Co

Southern

Contihueid from page

1963

J2, 1959,
Stanley & Co.

June

Inc. "'///

'Piedmont Natural Gas Co.,

fall.

the company announced plans to offer
tt to subscribe for about
this fall, the; right
-fof-r0 basis. Business—
140,000 common shares on a 1 r>&.*!
,>i
o«.,+u
22, <1963

July

minimum of $50,000,000 of debt securities in the •/'
Office—601 West Fifth St./Los Angeles. Under* ;
a

Underwriters^ Competitive). Probable bidders: ' (Pre/ferred): -First Boston Corp. ^Dillon, Read & Co., Inc.;
-Lehman Brothers; White, Weld & Co.; Blyth & Co.,

writers—(Competitive). Probable bidders: Halsey, Stuart
&
Co.
Inc.; First Boston"/Corp.-Dean Witter" & Co

stockholders

$20,000,000 of preferred stock and $40,000,000 of bonds
by the end of 1964. Office—315 N. 12th Blvd., St. Louis,

spokesman said that the company is considering the

sale of

;

Jnc,-(Bonds); Halsey,- Stuart & Co. Inc.; Lehman Brothers-Blyth &:Co.;]Ine.)(jointly); White, Weld & Co.-

Shields & Co.

T Potomac Edison Co.

•::Aug:il'2, 196'3/the
^1 : th^ -^ale of; $35-. to ^4G,6oO,6o6 of
r

-tVPdofScUr^m^1964vtab&p^/e Of bonds-on

Lyncn,
(jointly).

rierce;< «emwr & wn

E^f!?ap-,DiiloS'
Unl°n Aecur%
and Equitable Securities

Hakey '•

OthPr

headed byCo

.a™

;

that it ;wiji need
000,000 'of new money in 1964 for'its constructioft program.and expects to do permanentimanethg/m- tlie.early
part of the year. However, it'has not determined the

'to 'Vo.-Stone & Webster,Securities .qb^^tiy)":?

bon^-fa°lW fowth dquartcr.- Address P."!" O. Boa '
faf£. T "rmMl^nnex Los Angeles^54,■ Calif. Under-,

gage

»s

■

bidders: White.

Probable

Weld

•

Corp.-Blytir& Co;:(5bmtly); Kidder,.Peabody Sc. ///■/

ney & Co.-Salomon Brothers & HutaleT .( jointly );
man Brothers^. ^
^^

fiSYilT
writers-^(Competitive)

*v>

(joi{itlyir..FiVst Boston: Cbrp^lyth lS: Co,
(jbiptIy);^%stman*;:Drllpn;f;C
.P°!:r

July. 30, 1963 the company stated

Inc.

Smith

Ues ;Cor®.

;

Pierce-7 Fen neri &

-Merrill "- Lvnch ,4

nv»jy. Boston

•*

-r f \'

(jointlyW.eld. ^Co.^tohi'.&'^Vebstel- SecUri-

^yth *S°Z

Southern Counties Gas Co, of Calif.
-kx•-«

nrof orre/t

<C1H OHO O/lfl'

c»V»Vl

CQrp..Otheif_:bidd6rs.were:,^rst

v.-.*:-/

flDft 'nf' Knn/^6.'

flnfl

^to

m0n on peb. 15, 1961 was made toa group,

nKniff

common

be, named*. TheTast
be named. The last

ifock; feaifiy irx-W
/imm^^its/$$70,000,000 monstructioh;; ^

Underwriter^-To

„

(jointly); First Boston Corp.<

{Utah Powfer & tight-Co. '
".t 7.',
;
•
July 2, 1963 it was reported that, this utility plans to sell

Leh-

(12/10)

" Virginia Electric & PCwCr Co.

amount

St.,

named
bonds

H^lsey1,, Stuart & Co., Inc.;|Salomon Bros. & Hutzler
July 23, 1963 it
Co.,-Stone & Web¬
was^reported:that the company plans to •.■Goldman, Sachs & Co. (jointly); Eastman Dillon, Union
sell about $7,500,000 of 1-15 year equipment trust cer- ^ Securities & Co.—Merrill
ster Securities Corp^dd^ohnston, Lemon & Co. Other
<- ™
Lynch;: Pierce, Fenner & Smith.
Mer
tifieates. Office
165 Broadway, New York.
Under¬
bidders on the issue'were Kidder, Peabody & Co.—MprInc.—Lehman Bros, (jointly); White, Weld & Co.; Stone
White,
-Weld
writers—
rill Lynch,- Pierce, Fenner & Smith, Inc.(Competitive), v Probable bidders:
Salomon
& Webster Securities Corp.: Bids — Expected Dec. ,10l
& Co.—Salpmbn-Brbsl, & Hutzler (jointly-); First Boston.
Brothers & Hutzler; Halsey, Stuart • & Co. Inc. Bids—
Information Meeting—Dec. 5 |11 a.m./EST) at One ChaseCorp.; Halsey, Stuart & Co.
v
^
"" Sept. 4 (12 noon EDST) at above address.,v
Manhattan Paza, New York;>w.
_

—

...

,,.

■

T.r,

—

Dillon, Uriron-Securities &

Eastman

.,.

—,

—

-*■*■

.v.

Cnuthprn
R^ilu/^i/ f!n
Vrv'Southern
Railway Co* /Q/CS^
(9/5)
Aug. 5, 1963, the company announced plans to sell $6,420,000 of equipment trust certificates in September.

/.*•

Public Service Co. of

Colorado

plans to
30-year first mortgage bonds in April,

1963 it was reported that the company

June 4,

sell $35,000,000 of
1964. Proceeds—For

construction.

Office—900

15th

Securities & Co.-MerPierce, Fenner & Smith Inc.-Dean Witter &
Co.
(jointly); First Boston' Corp.; Lehman BrothersKidder, Peabody & Co.-White, Weld & Co/tjointly);
Blyth & Co., Inc,-Smith; Barney &"'Ca.v (jointly)^ x ■>I,

„

;A?;

■

New York.

.^ne

rill Lynch.

V Washington. Gas/ Light.

v-'V;,y

July 2, 1963 it was reported that this utility plans to*
sell $20,000,000 of bonds in the second quarter of 1964Office—1100 H. St., N. W., Washington, D. C. Underwrit¬
ers
(Competitive). Probable bidders: Eastman Dillon,.
Union Securities & Co.; Equitable Securities'Corp.; Kid¬

This is the first instalment of a proposed $12,840,000
offering. Office—70 Pine St., New York. Underwriters—
(Competitive). Probable bidders: Salomon Brothers &v

St.,

Denver, Colo. Underwriters — (Competitive). Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman, Ripley &
Co., Inc.-Eastman Dillon, Union

der, Peabody. & Co.; First Boston Corp.; Halsey, Stuart

•" ;•

. .

& Co. Inc.

^ ■ *'"
Aug.- 5, 1963, the company announced plans to. sell
Western Transmission Corp.
420,000 of equipment trust certificates jn.^cljober. This
-April 17, 1963 it was reported that t^M'-newly-formed:
is the second instalment of, a proposed
$|2,8.4d;000 offer-natural gas pipeline company plans to file*a registra—.
ing. Office — 70 Pine St., New;Y'pr^/JJlidiS^Titer^
• tion statement covering an-,uhdetermined number- of
(Competitive). Probable bidders: Salomon "Brothers &T' common shares to be offered initially to stockholders of
Southern Railway Co.

;/ Public Service Electric & Gas Co.; (10/22)
July 23, 1963 the, compahy announced plans to issue $40
to $50,000,000 of 'debentdrbs"' due 1982 in October^ Pro¬
ceeds—To redeem $36,000,000 of outstanding 3% deben¬

(10/29)

:.<.*»»-

Hutizler; Halsey, Stuart & Co. Inc. Bid?—Oct. 29 (12

maturing Nov, \ly 1963 and: for construction.' Offjlce
—80 Park Place, Newark,. N ..x J. Underwriters— (C6mpetitive); Probable bidders: Halspy;'Stuart
cp. Inc^^
Merrill Lynch, Pierce, Fenner
Smith' Inc.-rLehman

tures

* Subscription Television,

lnc^'rr

nodri^ U. S. Natural Gas Corp. Addirfess^-9601 Wilshire Blvd.»
!

""V'Westefn'UnionTelegraphXo^'^'^Vx/'V/;? "v1! v

"•

th^h¥^:'i6intlv •'We^efrt K)nlon
r
1^
M963 the company^announced that it had
inc., ^md
and ^RmibelT^March
Reuben

Jim 14
|ed Ly
-y-

renorted that

Lear-Sieeler
arr
-L®a!F:?i.©gier,
H.^DPnjelley^ ranged to borrow a total of $100,000,000 by sale of notesr
Corp., plans to filei a registration statement shortly coh¬
Brothers-Salbmon Brothers & Hutzler (jointly); Blyth
;maiurmg serially, one-third at the end of each of the
ering about $22,000,000 of common stock. Busine^s^
& Co.; Goldman, Sachs & Co.-Harriman JElipley & Co.
years 1964, 1965 and 1966. It plans to refinance the serial
Company plans to offer pay-TV to subscribers in the
notes by issuance of long-term debt securities, but has
(jointly)'; First Boston Corp. Bids—Expected- Oct. 22 (11
Los Angeles and San Francisco areas. Office;—3171 So.
not determined the terms or timing of the action. Office*a.m. EDST) at above address.':':
;U-.
Bundy Drive, Santa Monica, Calif. Underwriter—Wil¬
—60 Hudson St., New jYorki: Underwriters—Kuhn, Loel>»
Rochester Telephone Co.
liam R. Staats & Co., Los Angeles.
/. .
'
& Co., Inc., and Lehman Brothers, New York/- "•
May 7, 1963 the company announced plans to sell $16,.* Tokyo (City of). - :
.
:'f'*
ur/;
;...
e
.
_
.,MA/0.
000,000 of debentures in-the first, quarter bf'1964, but , * May 1,; 1963 it wasrreported that the Diet had authorized 4
- Wisconsin .public Service Corp.
(10/8)inay do-so earlier if market Gbnditio'ns arp favorable..' the sale of $20,000,000 City'of Tokyo bonds in the U..B-'
March 19, -1963 it was^ reported- thatv this' company
Proceeds —^For construction. Office—r 10 Franklin St., '
'
11
Rochester, N. Y. Underwriters-^(Competitive). -Probable
bidders: First Boston Corp.'; Eastman Dillon, Union Se-.
curities & Co>Kidder; Peabody?' &'.Co>( (jointly);' Kuhn.v
Loeb. & Co.; Halsey, Stuart & Co.-Inc.x/t. r ;r v
man Dillon', Union Securities & Cb.-SalomQiiv Brother*
: ;:
Transcontinental Gas Pipe Line Co.
& Hutzler. (jointly); First Boston Corp,: White: Weld dr
Mav 6. 1963'it was rpnnrtpd that th"p» rrtmnSmv
Searsr Roebuck & Co.
*"

.......

-h

■'

•

Jr—

•

...

19,
nounced

mutual

ruling which

registered/ J

)Af shares.' Pric%--fBy

ahieitdment; Business—A.
for'subsidiaries 'engaged ki motor )ve^ freight transpGrtatibh, nartioiiwide'rfreight'■ forward^''
ing, truck leasing/ ete. Proceeds
:For loan repayment*,

'company

....

1963

li;"
||'*

a:/very small scale," and would be started-

....

been determined, it is said td be a relatively small deal,
a state-by-state basis as
approval -yms' granted. OfHc^\ idVolving oyer-50,000 shdfces. Business 'm
925 So; -Homan-Aver, Chicago: Distributor—Allstate* Eu-tv
^rental and service of .the •'tlltrbhip .Stbcl
unit used"
terprises, Inc., Chicago. "Vt •*>
'*s> * • h *v•' -**. f
vimrt
urp^ to
w 'nyhTTWo-o^ni/
provide * stock KrAwn ',„h
on

• -*T«

^a..

X-...

I'
II

Now With Blyth Co. "v

Abbett t T

.U>"

Named/-, Director

With<Aj. C. Allyn .Bell (k FarreH Branth

•

; CHICAGO; llL—John B. Lebnard
PORTLAND, ORE.-— ;Davrd S. Rogeri Cartesi,- managih#.*paTtner'JPOR
WASHINGTON/ Wis: - ^ MILWAUKEE, Wis./- and'.' jv
:/ .•!/,*Jias become associated with Lord;; Jones has become associ'sited with'+
of Auchinclossf'Parker &
;v.^r.:x
LtJ--,,".
Red- Kehneth L;
Murphy, has •become Farrell inc. have opened a branch.
*C. •,
Ahhpft
rRr
'C^.ci-'
1
9.ftfifiilth'•
'tih'SisllPi
jRIVtK'Jfe!
Pn
'Tnn
"PanfliA*
niiflAjin
rr
Abbett -8p Gov, 120
SdU'th/lLa'Sall^Blyth & Co. Inc., Pacific Btiilding: path, ;*, investment - bankers, -was^connected with A; C; Allyn.& Co^^office at- 111 East Wisconsin Ave1.. / *
^Street? as *a wholesale hepresehta-W'Mr. Jones7.-was,- formerly-nVan- elected a
/Director ./ of -Zausner He
'

f filiated -Fuhd, Inc.y'afrd American*'

with'1 Zilka, 'Bmither ;

was

•jjv'as formerly Port- Washing^ under the manageraent of Michael. / /
,

■ in * its
midwestei^/'tbrritbry.'/couver,'1' Wash." -Manager £orN First
! The company is sponsor for Af-/; California/Co. •and"rpfior ;thereto

-tlve

•

Foods- Corp.,
dent

has

Sol

Zausner,-PreSi-

announced.

Mr.

representative'

Sank-/-

Shares, Tncr;

Inc.

ing field since 1929.

•'

*;-•*•'

-Joins Walston.^-r^-\

r; *

hereon/has;
join^ ..the ^staH of" craft
Waiston
&
Co., Inc., 387 * Court
~

Street, N. E. Mr. Stephensaa for
•'many;-;yeaj:s..was*1-with Tnyestdrs

IbivCrsEKM'"Servfces^'Tnc:
//))

'• *

COLUMBUS,
name-of-The-

is with^ Carolina' Securities

Ohio —The

investment

firm
Com-

BRAUNFELS, /Tex.—Aus-

tin,"; Dobbins

'-**a

&'/Calvert;/"has

opened- /a,/branch
West .Sa'fl;

PaineJ, Webber /"Jackson
.,;V
'->* " *"
v

Curtis. :w'•' //

Austin Dobbins Branch

With^ Carolina Securities /Now North. Amer. In v. Co.

2SALEM, Ore.—Robert M. Step- 'RALEIGH/ N. C.:— Robert P.

was/ with

•v:
..

NEW
'

Ldewiv & j A. Noli. Mri NoiUdr;many years

Business

for

CortfestxCo.j Inc.

has been in "the investment:

Co.,

ton

office

members**of the ^Midwest "Stock Ej:*-

pany

change.^?Jt\

Town

of North America, 553 East

154 Falvey

Antonio--St", under the' Vercoe
of Gerald E.

Haag.

Street/has been changed td Mri/;Jiaag,;vWas/ formerly

local

North American-Investment Co.

management

mdhager for

.V:

•

Adds to ;Staff

COLUMBUS, v" Ohi6—'WHIiam ^M»v"
.is
&

;

Corp"':Insurance Bu.ldmg,

;

ercoe

Building,

now

affiliated/\wth. t:;

Co.* ' Huntington .Bank:

members

of Hie/Newv-

York Stock Exchange-':and- otheif •
Texas National Corp. 'leadmgvExchairges-.
»/•>
*

\
Number 629Q

198/

Violttme

The following statistical tabulations

Indications of Current

latest week

??1

Business Activity

Week

Latest

Kerosene

output

Distillate

fuel

■Residual fuel oil output

7,605,500

8,699,000

3.006.000

2,966,000

2,971,000

13,227,000

13,898,000

13.462,000

4,598,000

5.3S4.000

5,438,000

'.; ••'
(numberiof cars)—__—_=———Aug.
Revenue -.freight received from connections d|io. of dars).__Aug.
COAL OUTPUT (lb." S. BUREAU. OF MINES):

194,473,000

34.173,000

•-•31,668,000

33,366,000

138,955,000

123,258.000

140,414 00C

~r- - r-

planning
engineering
y^^'Nl&WS-.RpCDRD'r-NEWfSERIES {9W*. oiuHted

•

-.Total advance '.planning :'by■

-■

•

kwh,)_-_—
Aug.
INDUSTRIAL)- —. DUN &
>
BRADSTREET, *' INC-V:-c_'——.n_2Y.-p-_.l__—'__Aug'.

.J-

404,000,

i-.v'

$701,500

$603^00?!
,338,800.

v:-""245,200

PRICES:;'

AGE'-COMPOSITE

,.-r

-11,600

19,600:;.,

...

(e.

metal prices

m. j.

Electrolytic cbpper—
-•t-,

•'!

•

.,18,713,000

264

.?»?

T i,?

,'»••

Lead. (New,
•

AVERAGES"/f""y !

BOND PRICES DAILY
U; S. Government Bonds_-___

MOODY'S

-j.

9
9

.Cl—*

Group

Utilities

Public

Aug..

!—

Industrials

Groups——

MOODY'S BOND YIELD
U.

Aaa
Aa

—

:—

;

:__J.

Baa

Railroad

Group.

Utilities

Public

___^ug.
Aug.

—:

Aug.
Aug.
:—Aug.

—

Industrials

—

Group

Group.

—_i——

INDEX

COMMODITY

MOODY'S

—

$27.50

——

PAPERBOARD

ASSOCIATION:

received- (tons)—-

Orders

—^

(tons).

Production

10.800c

12.500c

114 875c;:

28.550c"

9.500c

11.000c

1.050c

Percentage

ar-cUnfilled orders

activity!!
1__—^
(tons) at-end of period.—
i—

OIL, PAINT AND DRUG
-:i
4959- AVERAGE^-—100

coke

$676,316,161

$752,579,063

$709,602,927

'W./--7-:-i-i-.--'.,T-

PLANNING,

tons) *

•

945,800

820.300

864,900

125,500

101,000

114.375c

Total

88.79

"V 88.25

88.95

86.78

91.91 •'/'"-

91.77

90.34

-•

13
*

sales—

-87,05

Other

Total

v - >

i,__

'.89.92
89.51

3.93

Total

sales

••/.

■Other transactions initiated on the

l-i'l Total purchases—

V- 89.92

4.39
:. :•

;y,

4.29

•f

4.40

Total

sales

4.83

88.40

34'4«) P ^ *

i 1

4.64

,4.42
V-.; y 4.45

4.91

4.42

4.51

4.41

4.53

371.6

,'-364.1

5.08

"•'-•

399.727

3
3
3

377,383 •',_'•

263,443

•

'V.' <*'

>■'

2-""

—

and

Stocks

Total

sales—

July 19
July 19

2,266,730

1,556,050

;—

02,000

333,450
!

425,450.
•I 844,980

714,918

15,767,000

15,737,000

*•'

——-..

410,440'

493,700'

494,140

556,000

907,595

1,032,160

"1,114,644
•3,775,055

662,765

DEALERS

LOT

AND

SPECIALISTS

EXCHANGE— SECURITIES
Odd-lot

sales by

764/JI'D

813 910

Number
Dollar

•

Banks

3,363,240

value

Odd-lot purchases by dealers (customers' sales)—
Number of orders—customers'
total sales

Customers'
Customers'

short

other

Dollar value.;
Round-lot

sales

Number

Short

dealers—

shares—Total

sales

sales..

Other

Round-lot

(

ROUND-LOT

STOCK

SALES

18,915

11,358

1,185,672
$63,195,971

July 19

$71,022,525

1,637,423
$77,951,924
638,150

339,160

?: 7

Total sales

584,260
.

550,330

310,470

WHOLESALE PRICES. NEW SERIES
LABOR— (1957-5!>==100):

•

Commodity Group— '
All commodities

Farm,

•

/ *

—

J—

products^!

Processed
fcods-—.;-^!.——__—
Meats „2__r-:j
_-_j

—

—1—

/ ^Revised

$7,552

$6,818

'-. >

3.25'

4.22

4.42

■

3.58

& Tel. (24)__

5.75
3.40

3.14

3.13
-

3.12

1.000,340

16,723,280

17,723,620

vehicles

trucks

—

cars

passenger

and motor

coaches—.IM¬

3.22

*
•

•

2.55;

3.45

2.68
3.55

3.23

3.22

785,100

846,793

161,446

655,656

715,772

136 340

129,444

131,021

25,106

$4G2.1

*$460.1

*$441.7

312.5

*311.2

*297.6

STATES
COMMERCE)—Month
UNITED

personal income———
and salary receipts, total—__—
Commodity producing industries—___—--

584260

339J 60

337,870

315,660

529,670

1,045,820
17,966,890
19,012,710

1,026,760

1,361,080

19,959,430

15,223,580
16,584,660

20,986,190

only

——

Distributing industries
Service industries
labor

Rental

and

(

income

Personal
....

income___-_

;

—,

——■—---

•

Aug.
—Aug.
.—Aug.

6
6
6
6

100.2
96.4

06.8-

,100.8

101.4"

92.7

94.3 '

100.51

100.6

100.3

...97.6

97.1..
■

,.100.6'"

100

94.3

100.6

:;iooj3

—

.introduction of Monthly

Investment. Plan.

%Prim'e Wektern'..Zinc
- n , lp

-one-half dent *a-pounds ♦•(&)

-a

•

95.0

79.8

*79.7

76.6

*58.6,

55.3

*12.6

12.0

37.5

*37.4

36.5

*12.0

12.0

1R. 1

*17 3-

1.6 4

32.1

29.9

*36.6

34.2

Transfer

incomeS/__/r-_/^^--'-*

12.0

36.5

payments/——!.———T—-employees
contribution for social

13.1

*12.6

>■

11.8

*443.1

.445.2

"-*.** y Net,
"debt; "_"_!1*Z_
.i-.iComputed annual

•

424.2

$30G.4GG.243 .$298.32*1.578

12,116.176% -* ./iXO 715.

>$29er^"r"r6
'

■

3.375? '

$294*i*9.n?7 ,"$291 "**"*•
3.361? :
;3.247^
.

-10 2-

/GROSS DEBT DIRECJ1 AND
GUARANTEED—(000'S omitted);
$305:481:910
-AS "of .julv 31-1—7—.»• • 6,998.17.4

pjeperalt -ftip-ds

46.7

"49.1

58.9
12.6

32.3

interest income—

St. Louis exceeds

*98.4

UNITED .STATES

101.5-

102.5

119.0

98.9

12.4

of-persons——__—•

-Total ,nonagricultural-

100.6

123.8

49.4

——

professional--

Dividends.

■

——
—,.

—_____

124.4

insurance'—!!?——

figure.' ("fNumber of", orders-'riot reported since
basis* af centers:-where ffeight f;-om " East

d^lh'erCd

Business

Aug.
All commodities other than farm and foods.——____^—Aug.

•Soid -oru

$6,971

—

(DEPARTMENT OF
June (in billions):

■

638,150

■

589

•

——

$4,810
1,419

Total

Other

79.3

.,v.lJ92

2.54

PERSONAL INCOME IN THE

639

—

(200)—

number

Less

U. S. DEPT. OF

_L—__

(10)

Government

July 19
July 19
*—July 19

__;

76,300

.1,382

(15)

Manufacturing

—July 19

——

$5,531

58,000

588

Wages

550.330

July 19
July 19
July 19

Other sales

20.871

•

Short sales—

"•

1,648,781

Total.round-lot sales—

1,583,611

1,251,230

1,505,534

.1,564,696

sales

,?$5,i9i

.'■

—-——

(not incl. Amer. Tel.

Number

$76,568,649

purchases by dealers—Number of shares—.

77.3

3.25

_!——_________i——r/,

(125)

Number

$69.oOo,'o»x

1,484,663

—

77.5

'»

103.400
r

!_——i.——--

FROM
MANU¬
FACTURERS'* ASSN.—Month of August:

THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
? !

TOTAL

■1

$67,852,565

1,352,211
$70,143,574

1,296,857

—July 19
——July 19

—

—_____—

122,600

VEHICLE
FACTORY
SALES
PLANTS
IN U. S. AUTOMOBILE

Total

1,412,870

1,304,436
$65,215,399

65-55"

_i__—_i
"; -v2.'-'

—

95,300

AVERAGE-YIELD—100
STOCKS—Month of July:

(25)

Average

•

—July 19

—!

sales

sales—

"78,900

-s-

MOTOR

July 19
July 19

—^

•

Insurance

—

217,900

170,500

——.—~~

Utilities

2.549,335

3,667,696
4,417,596

,55,100- • y
99,700
"1 **68,290 ?\ V .*-'<52,600 }■
'/*.81-,300"~* ? V f;-74-,400>-'

—

—r-

7 COMMON

Y. STOCK
COMMISSION

EXCHANGE

INSURANCE

omitted) :

Industrials

i<'

>108,200

WEIGHTED

MOODY'S

3,465,29p

7-749,900

4,070,844"'

(customers' purchases)—t

dealers

PURCHASES

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

INSTITUTE
Month of June
.?
■
' v

-■7 Total

99,900 "

135,200 ;•
y. •- 116.300

"47,900

•

Ordinary

155,700

"
„

Railroads

3,242,544.

2,817,505
3,560,045

••lGr.850
;

1,123,436
4,342,440

? 828,300

""..742,540"

COMM1[SSION—T

COMMERCE

701,708

721,675
867,865

——

-Industrial

Railway Employment at middle of
(1957-59=100) ,'.
—

LIFE

;

367,100

j.-,

—

(bales)

(000.000

' 216,600

(bales)

26.100

215,200

1 '

" *1

'
.

61;80Q

-Qrbup.

160,000

■" 1

41,200
*""46,500

——

—_!!? •'

•

18,800

?. 455,100 ;

June "30_!

INSURANCE

7:'

•

963,436.

597,812

16,869,000

(Bales) June. 30-—'

*•424.320

176,920

•■

86,600
92,400

;■

July

337,620

937,724"

3,522,440

Index

401.670

*•'v

210,800

_l__—

(tons)

INTERSTATE

625,360

86.700

62,300

-j

7 Shipped X tons)

LIFE

564,400 :

83,700

•

303,300

...

•

1,548,950
2,174,310

2,738,160

103,489
>

284,900

24,100
175,900

•

(tons)

Stocks

146,190,.

698.501

•

1,766,114
6,687,392

805,780

—

(tons)

i' 'Produced

2,361,920
i

•

692,612

10,771,525
109,926

—^

June 30

.;:

Huiis—

98.51

2,210,560

3,870

1,349,040

(tons)

7 Shipped

2,745,880
527,600'

446,190

-J
-•

567,680

1,894,380"
.2,462,060

374,090
!

July 19
.July 19
———July 19

———i___

sales.-——

Other

504,350

1,762,380

-"Short r:sales

2,421,330

2,303,370

5 428

4.596

4,184

10,064,349
'.. 112,132

:?•/''..

Meal—

Linters—

13.000

4,791

—

(tons)— _—'—

June

(.tons)

Produced

(tons)

Stocks

Produced

.—July 19
'- July 19'.

transactions for account of members-^

Total 'purchases—i—

-.659,941

29——__.—

active as of June 29—

(tons)-.

Shipped
„

5,696

4,174

_L___

at' mills

Received

Crushed

"i !

July 19

11,872

•

June_

Seed—

Cotton

99.04

'*98.03'

98 .99-y,

3.200

June:

542,041

month

T-"*■■■■

3,272

SEED AND COTTON SEED PRODr
UCTS—DEPT. OF COMMERCE—Month of

11.726

14,671

4,783

•

"18.410

13,201

12,512

COTTON

414,999

510204

--572,414

•?

14,672
? 5,715

_7-

—

June

Cotton spindles

336,338
'

*69 1

98,

601,098

303.004

368,518

13,389

45-.208

20.509

■

storage as. of

public

Cake

382,870

loans—
.

49,494

3,305

:•

V- $59,108

$64,165

50,220
12,622

Consumed, month-of June?_
—
In consuming establishments as of June 29__

368.8

$64,892 '
•

••

Stocks,

"4.66

credit-,—*.—

credit

Linters—Consumed

4 47

?: ^

30:

-credit*:

4/55

4.62

loans

3.91

4.82

AND LINTERS — DEPARTMENT OF COMMERCE—fcUNNING BALES:
7
7 7 . .

4.49

RE-

20,904

accounts

' 7 Service

.4.36

'.426'!',.' ?
4.39
.j?.,

4.44

361.4.;?

3.96

•

v
July 19
;july 19
,—.—.—July 19

;

Total xound-lot

3.334,780

COTTON

88.67

??•?■? 4.48

4.83

4.43
,

3.90

4.48

4.63

floor—J! <:'S

—_—

-•,•'54.100

SERIES-r-Esti! "
term credit

__y.__'

payment

Single

83.40

90.06

4.28

13-

——__—_______'july 19

—

,£Short,, sales—
,':'y -Other sale$2
;
,

3,840.900

* 3,7?6.3j0

"100,017

2,629,170 " " " 2,791,516

? Repairs and modernization loans—.

,81.29

87.18

4.50

July 19

——

J 906;0OQ

•

tf5,063,861- T

'94,525

credit__l__j:__-__i_—'

credit

Personal

90.77

33".6r-

89.23*"-'

4.50

-—July 19 ;

—_l___——

22.169,000

' "4,963,844 "

4,736,131

FEDERAL

THE

of June

Noninstalment

13*

floor—
£-^———July 19

the

.__

sales—_______

Other

;

off

initiated

purchases

*r Short. sales.

•

;__—_——

"12,300

intermediate

and

consumer

Charge

-,..84.55,

86.91

89.78

;

64.43

1-89.04

•"

■—.'—July 19

•___*—

—

sales—

transactions

Other

■■7

!—J

;—:

693 90O

:•„•

1,783,00Q

4,830,656

-;l
_i;.,.

Automobile

90.34

89.09

•"• •?•» 1

84.43

92.20

90.20

89.09

—Aug.

sales—

-Other
Total

purchases

Short

703 -600

39,250.000-

1,315,000

of month (net tons)

at end

consumer

Instalment

77
89.28

88.81:

•

28,000,000

•

.*965:900:

(net.tonsV——__—i

SYSTEM—REVISED

in "millions

Total
-

108.375C

116.375c

89.11

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

rs5,600

1,106.500

1,469,600

tons)__C'__!!_l——

(net

short

mated

24.000c

22.500c;

22.500c

88 81

Aug,
Aug.
—Aug.
Aug,

OF -MEM-

ACCOUNT

FOR

TRANSACTIONS

$1-,391.400

$2,072,400

$2,415,400

MINES.)—Month of June:

GOVERNORS

.7Stocks
ROUND-.LOT

•—

$737 331/166

•••

'of.

(BUREAu

* SERVE

••7

9.300c

Augv-3 .
( " * ' ; >'
22__AugJ; 9

•REPORTER PRICE INDEX—

•

Beehive ..coke,

*'
'.

.11.500c

•

•*-.

Aug.
—Aug.
—Aug.

City—'

.! -'

ADVANCE

municipal_t::..v„_—"

and

July:'-

Oven,

12.000c

12.000c.

—

141,854.709

27.759,039

construction?_i_77——n———_
c6nstruction-7?!l_!^__7__!_^—__!_

Production.,(net

NATIONAL

-2S.947;504

211,120,880

45,526,943

.Bituminous 'coal and lignite (net tons)^l_/v/
.Pennsylvania anthracite. (net tons >_?_

30.600c

f28:400c- 4

12.500c

22.500c

DAILY AVERAGES:

corporate—.

Average
.!

______—"___—___Aug.

Government, Bonds-—__:—

$66.44

'13.000c

—Aug.' 13

.__

Group-—___—_—_____

•6,19:0

$63.33

13.000c

11.050c

Railroad

6*2790

"30.600c y.

28.425c
"11.250c

11.250c.

—

:1,'j. "r— v'.

3.6,843,112

of July (000's omitted):
co"nstruCt'ioni_JJ^:_

Oven coke stocks

SO.GOOe

30.600c
28.475c'

_____

—.

$713,159,273 ' $798,106,006
.'

OUTPUT. (BUREAU. OF.MINES)—Month

coke

$25.17

'$63.33 '''

"'•

Aug,
Average corporate-——i__
——— .ug.
Aaa-___U———X
:__r—c_—.——'
—
Aug.
Aa
__1_—--1
Aug.
A
*—
—.—j*—
—_________ Aug.

$26.83-:;

(delivered

tZinc

I$25,83:-'

CONSUMER CREDIT OUTSTANDING—BOARD

Yofk^) at__—'_—-,2
Louis) at-_u___il'_-__*_-_,i-—
at)__,i.__-v_,iY.__'___!-_-!.^_—
—- .ug.
Zinc (East St. Louis") .at
—-—ue.
Aluminum (primary pig;-99.5% > at—i_:—__—Aug.
Straits tin /(New -York) at___^_!—
(St.

,-Lead

•

$63.11

*:v

'.,.306

273

'•>.-•> ■**'

153.03*3.217

40,721,043

"b?^?

? 6.279c

•

'.i. „-r'

'.vugi
—c__L Aug.
—-Aug.

^_c_.

6.279c-

l".

York

New
'Y-r

Federal

■,

...

238

180,70x335
'

17.159,OOC

17,437,000

18,607,00Q

141.359.626

52,045.521"- ..lv 37,239,366 ? '48,191.117

—

States__-—

**'!

Public

•

? ;•,-?
?"??"y \:. •
*.

quotations):

at_v-r-?-?-4

138,450,380

l?3:.73i;830

159,507,948

■

City_!___!;:'_^i___i_^_l?-„'?!'_;_L_

State

:.'r:93 ?V V-'

$14,795,405
84.3,67*08

89,571.482

.60,270,347 ,54.648 2 ,1

SERIES^-ENGINEERING.NEWS REC-

Private

.,s,7o:

16^,416

ORD—Month
Total

COAL

a t'__-—- ~i____—-___\ug.

Domestic- refinery

Export. refinery

-248 OOC

•Y

70,783

J..' 715 J.4 11

$39,372,282
.

30,37^,515•

•??.? 777V. 7 -"

outside

•'

94.626/ 7
105.870

124,278,5.74

?___■

ENGINEERING

NEW

\J ' 145.530
':.C?T35,' 0

y..2..33.000

VV?/;-.? -98 V

Finished -steel, (per. Jb.)_-Y.—_—Aug..
"~Pig iron (per gross ton )-"!!^-^!-—!-—v.-!——-—Aug.
C Scrap Steel (per;gross tbn).__Aug.

•

$643,300
356,000

.'•".v

IRON

•

246,500 < V T1 292 ,"300
"234,900!
; 'V'
259:300

CIVIL

$394.10:

74,033
7.

United

York

'-?• 306.000

74,773,983 1

•v..

:(Pacific7 7?"-;
New

79,960

105,227,256 *
it

Mountain

8,227,O0C

•

187.000:

455,000

•

-1.264,800
•

(COMMERCIAL AND

FAILURES

.1,990.000

99,027

$42,818,646

i.:_—-i—'^L'—-

Atlantic

?;•

C;?1':???/

142,500

Atlantic

To.tal

Electric- output iin, 000

•"

445,000

-•

'•>-

' ? •

7,201,100
'

yi- West- YCehtral

482,242

DUN

—

7 -East'Central
- South." Central
;

?? '568.424

454,750

'•
-

ownership_l!!_!_4'-_^__v^i"!!-i4ug.

INSTITUTE: ■;

73,117

-211.400

CITIES—Monti:

INC.—217

•

England

South

34,819,000

"440.795.

VALUATION

PERMIT

June:

Middle

50,717,00.
:

--—'A'tig.^
*
!!. State .and 'Municipal———————-!—--:r--!.~----r---Aus.
Federal,.Aug.
DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE SYSTEM—1957*59-AVER AGE=1«0_-_{_-1_'--l.1-_''J_"_u.L-),!-;-Aug..
EDISON'ELECTRIC

'•

600,850

-9,085,000

•

46.966,000
90.686, OOO

:S\\

??395,000;

Public

;

Total

A U g'.

e..

8p,*524,000:

v*;! /Private,

■L,

construction ' advance

«*>'
<r

(tons)*
(tons).

anthracite

50.419.000

501,-904

•-•c.i.i---"—Aug.

lignite

and

coal

Pennsylvania

*^>558,295

freight loaded

Bituminous

INC.—Month

INSTITUTE,

BRADSTREET,

? New

182,258.000

189,551,000

-Revenue

ZINC

BUILDING

AS^ci^TlQjr;,OF^AMi;Ri^AN- RAitR.oAps^-c-y y>r ??
-

•

730,737.000

2,955,000

4,816,000

187,472,000
2
at?-—-__________:—i__-____^«i!_-wi>:--Aug.. 2 ' '.;»3'4,147,000
142.879,000
;Dist'iilate ,fufel • oil-'(Jabl'ss). a.i-r,.:--^-rv'7r^^-^ff--v-j'r^"-^Aug.
43:997.000
"Residual £U.el 'pii
T~
■-v! Unfinished diisn (bbls.). '.at__c_n_^_y_*^^-ti-!-!^-X4--'7'-'AuS'*"2t'' ?8&313;0G0
•

7.343/JOO

9,181,800

139,200

zinc smelter output all grades (tons
2,000 pounds)
Shipments (tons of 2,000 pounds)—!_!_!;
Stocks at end of period (tons)______j.
,_7

8,462,000
31 OTS.-KIP

13,741,000
'"

."•"

7,248,960

8,802.000

—:

(bbls.)

-Kerosene

„

8,736,000
30.815,000

/ Stocks at refineries,, bulk terminals,,in transit, in pipe lines
.
.'•? /Finished gasoline'" (bbls.^)''at_'____l____J__——•—-Aug.

■

AMERICAN

7,583,310

7,648,860
,

30,849,000

Aug. 2
1—Aug. 2
(bbls.—Aug. 2

output?!bbls.)

oil

9,393 200

7,898,900

thrms)

July:

(bbls.)?—_?—

8,038,100

therms

54.0

0.676

0.581

Ago

Slab

—---——,—Aug. 2
average (bbls,)_.,
—Aug. 2
—r--"—Aug. 2

output, (.bbls.)

Gasoline

0.569

Year

May:

sales (M therms)
mixed gas sales

gas

Manufact'd

INSTITUTE: ' - r'"" " *~ "/-'-I
outputs-daily average (bbls. of..

gallons each) _.—_—
Crude runs to stills—daily

sales

gas

Natural

—Aug. 10

1960—

Total

84.7

111.5

Month

ASSOCIATION—

GAS

month

Ror

condensate

and

oil

-Crude

PETROLEUM

AMERICAN
_

Iron & Steel

late

data

this

,'i

95.7

Month'
AMERICAN

1,578,000

of that date:

are as

Latest

93.8

either for the

are

of quotations,

cases

Ago

2,077,000

1,782,000

operations (per cent capacity).
Institute discontinued issuing

steel

indicated

The American

Ago
•

Aug. 10

1957-1959

for

Unofficial

'•

Week

1,748.000

•'

or,

Year

Month

that ^ate,

production and other figures for the

cover

Dates shown in first column

month available.

month ended

Week

AMERICAN IRON AND STEEL INSTITUTE;
'
Steel ingots and castings (net tons)!
Aug. 10
Index of production based on average weekly
production
; yy

(669)? 45

Chronicle

.,The Commercial and Financial

(670)

The Commercial and Financial
Chronicle

Continued

models

anew

Truck

from page 12
in the

were

assembly

week

Splant works.
In

•

'63

the

model

making,

only

this

Due

tonnage

volume

single Studebaker model, Chevro¬

emergency

tonnage

zfour of

seven

Ford Motor Co.

anakes

were

still

:at this time.

able

car

Chevrolet scheduled

ppriod slated to end with

arunout Aug. 10; Ford programmed
17.800

some

will

;and

^gain

for

cars

rr.ake

week

this

few

although

and

not

city.

For

carriers

•

throughout the country.

some

Lumber

A.-vA:

'64s.,

>v '

A From

Chrysler Corp., which built the

Lumber

last of its '63 models at its Hamixamck
uled

plant

the

Aug.

industry's

second

feet

general

Tun; '

this

anaker

units'

1,600 '

some

week

were

by that auto

subject

Rambler

output

*64 work

week.

Corp.

ended

tionally

imodel

making in

•continues

late

production

fell

and

its

thousands
weeks

Corp.

built

date,

accounted

Motor

Co.,

for

The

Decrease

Same

1962 Week

Loading of
558,295

American

Aug.,-8.

42£5&

Aug.

the

cars

was

7.1%

kwh.

the

crease

low

10,129

the

1962,
cars

cars

corresponding

and

5.1%

below

de¬

1.8%

be¬

the

corre¬

sponding week in 1961.

,-v

generated

;

car-

loadings in the week ended Aug.
3, 1963, are estimated at approxi¬
mately
of

11.9

2.6%

billion,
the

over

week of 1962 and 4.6%

There

15,554

were

loaded with
tainers
ended

reported

cars

highway

(piggyback)

in the

con¬

week

July 27, 1963 .(which

included

that

total).v This
2,123

1961.

over

one.or. more revenue

Lighway trailers
1

increase

corresponding

cars

week's

was

corresponding week

4,539

cars

41.2%

the

above

1962

and

above

the

fori the first

448,614
of

crease

weeks

52,823

of* 1963

for

cars

in¬

13.3%

above the corresponding period of

1962,

and

120,845

1961. There

cars

.36.9%

type traffic

class I U.

this

with

and 58 in the

were

systems^ originating

compared

year's

one

this

week

year

ago

corresponding week

1961.

Intercity

Truck

tinues

Outpace

Tonnage

ahead

ended

Con¬

Volume

tonnage in the

Aug.

of the

responding
American

volume

week

Trucking

3.1%

was

the

cor¬

1962,

the

Associations

announced Aug. 9. This continues
a

long series

has
\

now

months,

Output

106,000,000

was

the

lasted
v-

increases
for
•

which

nearly
1

•••

two

similar

day

last

268.13

month

the

and

the

week's

1962

Failures

ended

238 in the

two

preciably below the 306
occurring

the

weeksfof

1962

and

tively.

However,

almost

and

343

comparable
1961

they

respec¬

did

push

ahead of the pre-war

toll of 252 in the similar week of
1939.

The

toll

bounded

retailers

among

132

from

re¬

from

35, and
to 31

19.

at 34 and
25 from

in the

industry

service

ties

trade group except

suffered
in

previous week.

the

many

similar

casual¬

week

last

year.

geographic
regions
a; week-to-week rise

ported

re¬

failing businesses, and four other
areas

reported

mortality
stantial

relatively steady

trend.

The

upturns

Central

most

sub¬

the

East

lifted

toll of

50 from

39,

the Pacific to 46 from 37 and the
South

Atlantic

change

the
was

areas

the

from

with

Middle

little

Region where casualties stood at
71

against 74. The week's only

noticeable decline occurred in the
West North Central States.

Nearly

all of the

year-to-year downtrend

centered

West

and

South

the

Middle

Central,

Pacific States

Atlantic,

Mountain,

whereas biisi-

from

100

Piece

Dye Works—Analy¬

sis—G. Everett Parks & Co., Inc.,
52

period
York

since

3%
1.

City

one

absence of the sales tax rise. The
four-week N. Y. C. flash

plus 4%

was

over

year

Broadway,

New

York,

and

Dun

1962

Pushing

the

pronounced

Brad-

and

corn

slightly

minor

were

easings

Partially
prices

oats, sugar, cottonseed
oil, potatoes, steers and hogs.
rye,

The

Dun

Bradstreet.

Inc.

Wholesale Food Price Index
represents the

pound

per

total of the

sum

Disney

Productions—Com¬

ment—Walston

Street,
Also

ments

Co.,

New

Inc.,

York,

available

and meat in general
use. It is not
a

cost-of-living

function

index.

show

Its

the

chief

general

trend of food prices at the
wholesale level.
_

°leUWe&ther and August Sales
Help Retail Business
With the help of cooler
weather
and

special August sales of home

furnishings,
at

consumer

are

and

activity
year

solidly
the

Bureau

the

com¬

International Minerals &

Chemical, Midland Ross Corp. and
Western
H.

Nuclear

Inc.—Bulletin—

Herrman

Company, 26
Broadway, New York, N. Y. 10004.
Whirlpool

Corporation—Analysis
Company, 5 Han¬
Square, New York, N. Y.

—D. H. Blair &
over

10004.

Also available is

analy¬

sis of J. Ray McDermott and Com¬
pany Inc.

August

ago.

slowing

terest

furniture

and

the slack left

apparel

fall

week

clearances.
some

in-

Plume
York

3-ending

week's

gain

same

increase in department store

almost

4%—about

the

^e increase in aeparime,
sales f0r the same perlod'

Johnson

run

drew to

re—

ranged from 2 to 6% higher than

Co.,

1526

Inc.

levels

Regional

from

the

Central +3 to

1962

following percent-

ages: Mountain

Atlantic

estimates

comparable

+ 5 to +9; Middle

An¬

and

changes,"
Gillin

St.,

mem-

leading
that

ex-

John

associated

now
an

Prior to
Mr.

other

announce

them

Chestnut

account

executive.

associated

was

School
tion.

with

Elkins, Morris, Stokes & Co.

the

Ave.,

members

stock

Exchange.

the

Midwest

Ellerman

Mr.

formerly with Walston
and

prior

New

Co.,

Business

Ad¬

'■

Company of

provides
an

School in

candidate

two-year

entering student

who is planning a career in bank¬

finance.

Wilson

the

1963

College

graduate

Wooster

Wooster, Ohio, where he majored
in

economics.

graduate
Dean's

time

During his under¬

years,

List

and

the

was

participated

extracurricular

many

with

Miller for

Master

York

While

thereto

1963,

fellowship to

MILWAUKEE, Wis. — Donald J.
Ellerman is now associated with
Marshall Co., Ill East Wisconsin

Administra¬

enter the

The Bankers Trust

ing

Joins Marshall Co.

Business

ministration degree.

Mr.
/

University Graduate

He will

September,
for

with

joining Reynolds & Co.,

Gillin

Trust Company Fellowship

ers

the Harvard

the New York Stock Ex-

change

activities.

college, he still found

work

teller

the

Wayne County National Bank in

Wooster, Ohio.

a number of years,

Reuben
opened
47th

^he

Rose
a

St.,

year ago, according to spot estimates collected by Dun & Brad¬

street,

with

I^ade in the Aug.- 7 week

varied

formerly

the
Mr.

Scholarship Award

Joins J. K. Mullen

Reuben Rose Branch

Exchange.

R. Wilson, of Evans City,
Pa., is the recipient of the Bank¬

PHILADELPHIA, Pa. —Reynolds
bers

close-

Th^ total dollar volume

St., members
Stock

was

James

loins Reyno'ds & Co.

Cruttenden, Podesta &

1963 model

the

■

had

the

total ,saIes 6% above a year ago, derson & Strudwick.
over sales registered
department stores alone. The
year~to-year contrast* .for
the Bankers Trust
Co.
lat.est four-week period showed a

Inc.

appeal. Surprising life throbbed in car sales

P.1
an

Investment Corp. of Virginia, 215
New

was

strongest

Vice-President

Department of Commerce,

back-to-school

tail

Assistant

East

clothing, although swimwear still
the

Va. —Thomas

'a 2% gain

outdistanced

Shoppers began to show

NORFOLK,

Johnson, Jr., has been elected

Census,

buying held

similar

Litton Industries.

good pace in the week ended

Aug.

;

Aug.

price

foodstuffs

raw

the

and milder

cocoa.

year,ago.

that

over

A broader set of data encompassing total "retail sales, compiled

were

offsetting these higher quotations

wheat,

(adjusted)

corresponding period

prices

in-

rung up for

latter

volume

creased 4%

;

rises

the

index

eggs and lambs

ones

after

since

Y '

part of May.

hams,

last

ago,

with last-year both A

even,

week

—

Market

10004.

week

the

hike

Co.,

Elects Johnson

29.

Atlantic

tax

Inv. Corp. of Va.

compiled

white sales took

Five

Memorandum

—

year-ago

New

every

Pacific

districts' retail dollar

Meanwhile,
even

of' Union

dex,

wholesaling declined to

gained

week

for

available

So far this year (Jan. 1 to
Aug. 3), the 12 department store

among service busi¬

from

the

can
surmise, however, how much
higher it might have been in the

declines

United

store

10005.

figure

New

" Also

figure

weekly

119, among

contractors

flash

Hut-

Montgomery, San Fran¬
cisco, Calif. 94104.

Re¬

Wall

four

Street,

Street at

10%

the

analysis

Schwabacher

Walt

for

Wall

the 1963 record set on
July
23, the Wholesale Food Price In-

construction

figure. New York City's
department store sales were up

notwithstanding

from

Bradstreet, Inc. Despite this
increase, casualties remained ap¬

Transamerica

for

comparable

increase.

Even With 1962

Following

this

Aug.

Co.,

ley-Howard, Inc., 2 Gateway Cen¬
ter, Pittsburgh, Pa. 15222.

dis-

June 1, there has been a gain for
the N. Y. C. department stores

Wholesale Food Price Index Edges
Over Week Ago but Holds 1

mained

prior week, reports Dun

ended
the

commencing last June

downswing to

week
over

City

Traileurop—Memorandum—Lang-

country's

deoartment
York

Manufacturing

com-

Federal

year.

week

Aug. 8 and partially

New

the

Insurance

Bobbins, Na¬

Railroad.

sales

street, Inc., edged 0.2% higher to
$5.94 on Aug. 13. The index re-

Mild

the

272.25 at the comparable time last

Take

for

the

Glass

York, N. Y. 10005.
is

week

City's sales for the Aug. 10-ending sales week revealed a plus 3%

Monday, Aug. 12, from
Monday. It was off

ton

encouraging

for

Life
&

Borg,

General

Company—Analysis—W.

row.

level

period

Thatcher

week's

ending Aug. 3.

Com-

eased

kwh.

17,159,000,000

recovered from the

Among

Intercity truck
week

1962

last

ac¬

Electric

ures, still on an irregular weekly
turned up to 264 in the

North

Edison

Commercial and industrial fail¬

above the corresponding period in

railroad

the

manufacturing failures held

Cumulative piggyback loadings

Index

Bank,

Can, Paddington Corp. and
Skyline Homes.

in-

week's

light

Upturn

nesses

196fl week.

totaled

electric

18,731,000,000 kwh.

Business

over-all

increase

15.8%

were

265.31

energy

course,

the

corresponding

week

Ton-miles

electric

the

how-

Wholesale

Price

tenth

System,

sales

supplies.

The

year-ago

leading department store

serve

pushed

were

1962.

According to

cost

year's

tricts.

sugar,

Some

prices

Daily

outpacing

week .,in
of 29,974

decrease

year-to-year gain of 9.1%.

1?he loadings represented

scrap

265.41

9.1%

output
a

;;

Shows

18,771,000 kwh., and 1,554,000,000 kwh. above the total

of:

below

221,634

above

total

preceding week.

227,688

210,523

industry for the week
Saturday, Aug. 10, was es¬

timated at

announced

229,626

209,336

184,461

power

cording

totaled

decrease

was

modity

1962

well,

downturn,

tinuing export drains

Aug. 4

1963

coffee,

silver.

the

were

wholesale

rye,

National

tional

4% for the Aug. 3-

the

over

parable

offset by the fact that

ever,
steel

The

194,405

the

period

last

in pig

Board's

Amphenol

Houdaille,
Stocks, McKesson

taken from

Reserve

page

comments

Foods,

year

declines

sales

Continued from

Franklin

the four-week
period ended
Aug. 3, 1963, sales gained 4% over

cutback in scrap output plus con-

the

196,614

amount

Institute.

Association

Railroads

This

for

July 27

185,196

Output

distributed
and

freight

revenue

ended

cars,

feet

dip

were

marked -the

higher by increased mill buying,

+3.

store

weekly trend in

solid downward

index, and

oats,
and

last

Federal

dex

frac-

below

the

gain

Monday
edged

ended

Show

From

week

board

figures

Gain Over 1962 Week

Stude-

for American Motors, 464,126.

Carloadings

—

Electric

53.5%;

26.4%;

fell

Dealer-Broker

ending week compared with the

last

1963

trailed

considerably from

tbajker Corp., 1.0%. Final count for
Clirysler Corp. was 938,812, and

i.8%

orders

estmated 7,339,000 cars of

has

"Ford

___

hogs,

strength

shipments

the

are

week

registered
of

levels,

orders

new

Aug. 3
Production

Nevertheless,

and

the

week

associa¬

country-wide basis

264.89, the

noticeably

ago

thrust

indicated: A,'\-v

Shipments'

car.

13.6%

19.3%,

last

commodity

had

iron prices gave

received

1962

but

higher.

rubber

with

fell

week

quite substantially.

the

Aug.

lumber

production

but

month

1963

design

the

Following

Hawk

June,

ended

reports

regional

New

*63

and

Nationwide Department Store
Sales Rise 4% Above Last

the 35

Year

point

week

remained

16.7%.

'63

Studebaker

Lark

tions.

of July 26 and will start

Avanti

ended

car,

week

Compared

A American Motors Corp., maker
the

the

from

"startup"

progress.

«of

this

Week

production

according

production units of the '64 model
planned

1962

with

even

and

lowest

Wednesday,

19.3

Central

preceding week

price level slipped

country totaled 185,196,000 board

sched¬

first

Production Down

South

The general wholesale

•of, its plants will also start work
on

Falls Below Last Week,

com¬

increased

East

Year's Level

Month

freight

England,

Thursday, August 15, 1963

Pacific +1 to
+5; West North Central and West

Wholesale Commodity Price Index

only instead

general

New

Central and

corresponding

metropolitan

this week

+6;

South

Department

this
based

are

the

mon

'63s

failures

levels.

about

were

the

equalled

year.

avail¬

than 400 truck terminals ofr

week,

rains

findings

survey

for

customary 34. The report
reflects tonnage handled at more

model

1962

36 from 24 in the

were

that

these

districts

Canadian

conditions in Buffalo,

for

areas

completion of 22,300 cars for the

exceeded

year.

figures

reason,

production

the

torrential

let division of General Motors and

geographic

2.0% ahead

was

for

tolls in the other five major

ness

STATE of TRADE and INDUSTRY

DENVER,
Co.,

New York

direction of Leon

have

City,

under

SAN

LEANDRO,

Hansen

Co.,

Calif.
has

Voorhis
staff

Colo.—Lester

has

been

the J.

ment Co., 621

added

K. Mullen

Van

the

Invest¬

17th Street.

Mayer,

Joins McDaniel Lewis

Wulrr, Hansen JDranch

-j-8; East North branch office at 432

4-7'; South Atlantic

Inc.,

branch office at 31 West

—

GREENSBORO, N. C.—James R.

Wulff,

opened

Estudillo Ave.

Roger B. Edwards is Manager.

Perrin
Lewis

is
&

members

Exchange.

now

Co.,
of

with

Jefferson
the

McDaniel

Building,

Midwest

Stock

198

Volume

Number 6290

The Commercial and Financial Chronicle

...

(671)

include

TAX-EXEMPT BOND: MARKET
Continued from page
Tax

(1964-1989) bonds to the

count

ac¬

managed jointly by Harris
and

Trust

Savings

and

Bank

Co.

RowleSy Winston &

net

interest cost of 3.3094%. The

bid,

ner-up

cost,

was

headed

run¬

3.3621% npt interest
made by the account
a

by Merrill Lynch, Pierce,

& Co.,

major

winning

members

account

Republic

are

National Bank of Dallas,

Pierce
&

Co.,

the

Rauscher,

Eddleman,. Pollok

Fosdick, McClung & Knicker¬

bocker, Dewar, Robertson & Pan-

coast, R. J. Edwards,- Inc., E. F.
Hutton &

Co., First of Texas Corp.,
Field, Richards & Co., Russ & Co.,
Securities

Hamilton

Co.

1.85%

3.375%, the present balance in

account totals

$3,125,000.
Quite

Tuesday

The

three

was

issues

importance

Suburban

The

Sanitary

awarded

Drainage

$4,-

(1964-

by the Chemical Bank New York
YTrust Co. at

3.15%.

The

3.16%

net interest cost of

bid

runner-up

interest cost

net

mitted by

maturity

sold

Initial bank and

was

Main

attention

sub¬

was

Phelps, Fenn & Co. and

syndicate

Co.,

winning

Smith, Barney & Co., Gold¬
Sachs

man,

Co., ' Mercantile

Trust Co., Bache &
&

the

The Northern Trust

are

Dominick

and

Co., Dominick
Hayden,

Stone

& Co.

1964

1990

for

upon

reoffering

sold.
and

priced to yield

were

1.90%

various

Another

$8,220,000

mitory
This

1967
sold

interesting

issue

were

Public

various

000

thirty-three

twenty-three
had

the

large
the

and

Housing

local

net

winning

bank

was

Dor¬

into

net

$6,-

group;

Manhattan

Bank

braska ;

Kearny,

were

D u 1 u t h,:

Texas

and

group

interest

cost

and

the

for

of "the

members

include Harriman

Co., L. F.

Co., J. C. Bradford

Co., Fahnestock & Co., White-

"A" bonds

were

re-

coffered at 2.30% to 3.75% and the
were

at press time in group totals

$7,185,000.
j

Agency

only bidder at the

the

was

successful
same

and

time for

series "B" bonds in the amount of

""$3,030,000
as

maturing

3V2S at 100.

& Co., Inc.
these

1989

The Halsey, Stuart

group

did not bid for

Chicago,; Harris

Tuesday

evening,

the

Savings'Bank, C.

$25,000,000

Devine

net

(1964-1993)

interest

runner-up

cost

bid,

Johnson

bonds

3.35%.

The

3.38% net inter-

est cost, came from

Smith, Barney

& Co. and associates.

The major members of the win¬

group, on

National

Bank

Lake

Pledged

pledge

Sec

ritie

Co.,

the

satisfactory* v>;

' 1

Philadelphia

Corp.,

National

All

ception

Chair¬

the

their

First

Na¬

York, discussed the

follows:

•

;

rapid

expansion

practice

archaic
assets

bank

months, bank operating expenses

penses

Philadel¬

$100

per

"B"

three

was

1.80%

from

1.80%

vestments

3.20%;

sound and

and scale "C" from 1.80% to 3.30%.
Orders
the

Group

day

and

estimate

totaled

orders

Equitable

Corp.

the

from

bonds

314 s.

1971

1987 and 1991 and 1993-2003
sold

pre-sale.

1969

are

1.80%

Bonds due

offered

All

prove

1983,

loans

split

were

must

various

reoffering is

Real

The
First

pres¬

syndicate

Mover

headed

through

Corp...

negotiation

their

serial

revenue

bonds

and

the. pledged

assets

such

insurance

which

since

that

Other members of this

low

small

;

trying

•

•.

tut;

*•••*

•

$1,755,000

Jefferson

$1,060,000

Rock

land

Is-!

County, 111., $3,465,000 Ope-

La.,

$555,000

Glasgow,
Neb.,

Kearny,

Canton

290,000

Buren/

Van

$590,000

$855,000

bonds, all with

Mont.,//

and; $1,-

Ohio,

Massillon,

3y4%

coupon

and

namely,

1.80% for those due 1964 to 3.30% ' ;
the 1998-2004 maturities.
'

depositors

de¬
pro¬

and

•

Rated Aaa by

•

Moody's and AAA

might

to be

prove

secured

are

first pledge

payable

annual

pursuant

contributions contract be¬

Admin-

Local

Public

all

deposits

which

seriously impair the incen¬
sound

bank

management

Agency

opinions

and

Printed

respect

these

Elimination.^ of

out

entitled

the

alternative

spelled

report

Report

committee

your

Proposed

Pledging

the

issuing the bonds in the

United States

position of

istration

....

by Standard & Poor's, the bonds,

insurance

•

offered at prices to yield from

tween the Public Housing

printed
-

111.,

long step in the direction of 100%

proposals

pledging.

eliminate

County,

Me.,

policies.

Committee

Swains-

Alexander1

$650,000

County,
lousas,

the

$1,070,000

Ga.,

counsel.

bond

Housing Act of

The

1937'.

amended, solemnly pledges the

faith

of the United

States

payment of the annual
tions

to the

contribu---

by the Public Housing Ad¬

ministration

pursuant to the an¬

nual contributions

contracts.

...

<-•

of $1,-

ally

tives

Securities is pledged

banking system. Such

departure

•

$735,000

Ark.,

dence in the

would

up¬

consist^

annual contributions uncondition-

with

vannah,

adhered

function

proper

scale

Camden,

thereby maintain public confi¬
a

public

ward.

syndicate

been

maturi-

1998-2004

the

third

boro,

of deposit in¬

has

for

Walsenburg, Colo./ $1,800,000 Sa¬

are

inception;

Committee's

Pledged

would

coverage

all commercial

"As you know, your

1.80% for those due 1964 to

assess¬

posit insurance is to provide
tection

3y4% coupon and priced to yield

for

its

the

The

$1,535,000
^

790,000

higher level

the original concept

"The

not,

FDIC

Mass.,

ties.

sharp departure from

lic. deposits

due

thing,

$1,345,-*
Wake

3.25%

adequate

change

$25 billion, and the trend of pub¬

bonds

County, N. C., $2,510,000 Colum-

approach

keeping

banks at

constitute

to im¬

$3,330,000'

Kan.,

Topeka,

Cambridge,

from

government

000

several

one

justifiably

for
on

FDIC

pledged

so,

reason

enlargement

$21,810,000

1999.

this

For

banks is already well in excess of

continues

Calif.,

bus, Ohio, and $6,140,000 Chatta-

Second, full insurance of

ahead,. Finally,

relatively

$3,-

ndoga, Tenn., bonds, all carrying. f

than would otherwise be required,

Rate

secure

being

logical

activities

reason

/themselves

these

This

however,

purchased

(1964- 1989)

term

consist

;

Newton, :Mass.,: $1,635,000

depositors' claims
no

are,

whether

substantial amounts

Most

$2,425,000

pledged to

now

banks.

mean

surance

assets

any

public deposits might be regarded,

is the fact that banks

pledge

involve

increasing FDIC assessments.

agency.

yielding U. S. Government securi¬
ties.
The
total
amount
of
the

Pennsylvania State University 1st
Mortgage

this

better average earning rate,

deposits.
assets

Fast

Boston

course,

pro¬

unpledged and available to

closed

the

"One of the obstacles to obtain¬

from

f6r

3.20%

The second scale consists of

100%

public deposits would be¬

ments

Earnings

not

bank assets

would

the average yield on their

Hinders

1964 to

and

in¬

threatens

pressure

would

consideration.

smaller

among

increasing

1998-2004 maturities.

which have not received

were

yield

four

find

may

the

1964

have considerable ap¬
cago, 111., $2,055,000 Michigan City,
It sounds simple and pain¬
•Ind., $1,610,000 Kansas City, Kan.,

disadvantages

the

$100 of de¬

trend

1.80%

from

those

-I

"There

earning assets.

ing

remaining

per

to continue. Over the years

under

to 2.40%.

The

rise

not

yield

for

due

Pa.,
All

coupon.

Countv,

for

in¬

consequently, net op¬

ominous

bankers

was

priced

and

Pierce, Fla., $38,765,000 Chi-

there would be

compared with 1961.

high bidder for $8,975,000 Fort

Worth, Texas bonds

did

return

"This

Solutions

3Vs%

bonds,

coupon

Philadelphia,

with

bonds,

3%%

$675,

Pa.,

Sutter

profitable. The average

and,

carrying

$17,665,000

meeting loan de¬

the FDIC to meet

remain

order

County,

Fort

come

posits declined last year by .7%%

$30,000,000,

Securities

their loans and

erating' earnings

mostly in the short maturities.

the

much

being taken through¬

are

rate

3.25%

all

$790,000

deposits. At first glance this

cause

of return that banks

earn

bonds

rise

comparable

must

different

"A"

scale

Montgomery

managing-

Pa.,
and

Pa.,

Phoenix, Ariz.,' $1,460,000 'v-

secure

time

deposits

/■..

525,000

less.

1962, operating ex¬

deposits. For

County,

Johnstown,

de-;

increase in risk for the FDIC be-,

have risen sharply due chiefly to

;
..

$1,-''

insurance coverage for all public,

peal.

secure

United

scale

posal may

com¬

time deposits is in¬

higher interest payments

assets and

public

first

Franklin

(give banks far

flexibility

The

scales.

/;./•■' .;-v/,
consists of

■■

195,000 Carbondale, Pa., $1,485,000

bank

be for the FDIC to provide

average rate

the

would

three

claim

any

has been suggested by some would

E. Sherman Adams

Dallas,

3Vs% coupon/The bonds

with

Housing Authority bonds

•/„.

"An alternative approach which

the

are

public deposits. Over the past 18

Re¬

issues, with the ex¬

offered

assets

Alternative

City
as

,- :

according

time to

underwriting v

ly 29 issues, totalling $103,760,000
of New

public

same

safety

and

Vice-

carried

scales

against

mands.

creased 7%. This means that there

were

banks

preferential

the

greater

phia, Pennsylvania bonds, carried
a 3JA% coupon and that one issue
a

posits

$17,665,000

for

that fails. This would continue to

deposits.

pledging

Bank.

the

all

and

Bank

Smithers & Co.

assets

have

lic

"The

The

Bank,

illegal

joint managers

Bank,

nationwide 4

Aug. 14 offered public-

would

assure

provide that all joublic depositors

assets to pub¬

Co., The Northern inating

Paribas

make

deposits and at the

pledged

issue

Bank and Trust Co.,

W. H. Morton &

practical solution would

Bank of New

Co., First National Bank in Dal-,

Trust

best
to

the

Trust

and

tional

Hutzler, Bache & Co., Continental
Illinois

recently

Placid, New York, the Committee

President

Co., Kidder,

was

County, Kansas Water District #1
revenue

held

Adams,

Peabody & Co., Salomon Bros. &

group

Corp. and Stern Bros. & Co.
awarded

meeting,

Manhattan

carefully studiesd various

Sherman

Trust

ently available.v

Response

headed jointly by The First Boston

;

and

groups

Investor

annual

Committee, E.

2003

bonds.

Good

Bank

The Housing and Home Finance

;

if---

increasingly im-*;*

portant problem."

the

man

Co., Morgan
Guaranty Trust Co., First National

reoffered

at 2.30% to 3.60%. .Combined bal¬

of- bankers

possible solutions. We believe that

^he

Trust

New; York

the balance is presently available.

ance

this

Association's

tying

bank group include Chemical Bank

and the Milwaukee Co.

bonds

greater- in^ri"

part

to achieve

are

solution

Bankers

practice*

New

out

"B"

the

need
and

Bankers Trust Co. and The Chase

outdated

Minnesota;

Phillips Co., Charles King & Co.

series

clearly

We have

;' Major members of the winning

scale

series

Reporting to the New. York State

condemned

Ne¬

Portsmouth,

Weeden & Co., Bache &

The

hand/ *
for'better' >

To Investors

Renton, Washington ^.Fort Worth,

issues,
interest

bonds

in pros¬

seems

This!

Bonds Offered

headed

group

only issues not purchased by

this

running from

and

been placed

Association.

understanding
terest

proportions

there

issue calendar

new

modest

pect.

Oct.

also

agenda of the Bank Man-'> i

Bankers

can

sepa¬

The

Ripley & Co., Phelps, Fenn & Co.,
Rothschild

subject has
the

all to the good. On the other

enacted.

quiet order .market

sold.

creasing the importance of elim¬

"A"

major

bonds

lon National

both

3.701%

group

the

mercial bank

"B" bonds.

Other

*■

agement Committee of the Ameri^ >

each

and

calculated

totaling $103,175,000 of bonds.

California

3.493%

soon

'Next week's

Ladenburg, Thalmann & Co., Mel¬

& Co., Inc.

the

ex¬

excellent with all but

was

las, First National Bank of Oregon,

loan

divided

bidder for

for

demand, as might be

would

appointed

plan to in¬

has

the
on

effective

Reserve

Au¬

sues

Halsey, Stuart

cost

In¬

toll rates

bank

special committee to study it and

bonds by one point when it

crease

(

2, ill

purchased twenty-eight of the is¬

public

offered at 100.

were

loss

and

bond.

announced that

was

cou¬

represents
per

bankers

iri

agencies

states

Chase

submitting

and

3Vz

terms

interest

was

jointly by the Bankers Trust Co.

000,000 series "A" bonds and $2,-

high

Road

for various coupons and

term bonds carried

committee

your

increased

among

eral

against

supervisory authorities. The Fed¬

flurry of buying pushed
issues of Illinois Toll

both

week.

$3.00

A brief

released

were

yield from 1.90%

Aug.

both

rev¬

out at

averages

thority (1964-2004) bonds. Involved

220,000 series "B" bonds and the
was

about

1969

(1966-1994) bonds.

was

Co.

pre-sale.

Illinois

Southern

and

coupons

were

revenue

3.30%

$2,500,000

The bonds due

1992-1993

serial bonds

Deane

The Commer¬

led

sale of $116,095,-

& Co., Kuhn, Loeb &

The bonds

from

this

vestor

Hampshire.
of

members

dollars

Singer,

re¬

so.

Attraction

Wednesday

the

associates.
Other

Index

ard

$2,060,000

Week's

bond

enue

Thomas

work

this

to do

you

this problem of pledged securities*

last

Lynch,

urge

fractionally lower.

3.431%

"The

during

cial and Financial Chronicle's

Co.,

traded

Deposits.

studied

has

3.456%

pon

group.

Weld

lightly

Co., Inc., Butcher & Sher-

in pected,

remains

White,

been

issues

revenue

Public

have not

the past week with prices drifting

rerd, Stroud & Co., Moore, Leon¬

to 3.40%

casualty company

$8,230,000

Co., Goldman,

Co., Kidder, Peabody &

Smith,

the

pre-sale.

demand has been good and a bal¬
of

Dillon,

Eastman

to the public to

iy4%

Co.,

The

cou¬

rately and the award made sepa¬
market
rately. Fortunately for the writer,.

bonds to the group headed

i1993)

last

and ;was

coupon :

Active

general

Storm

have

Union Securities &

long-term

Secure

you

busy day with

Maryland

000,000

;

the

priced to yield 4.05% for

were

the calendar.

Washington

District,

in 1992 for various

and

ance

Blyth

yield from 2.00% in 1964

to 3.50%
pons

port,

Scribner and

priced the

group

other

Co.

winning

Assets

ley & Co.; Smith, Barney & Co.,

Co., Merrill Lynch, Pierce, Fenner

Co., Ira Haupt & Co. and L. F.

Rothschild

Dollar Bonds Listless

Halsey,

Blair &

ick & Dominick, Francis I. duPont

issue

Tuesday

Stone

Co.,

:*'■ The dollar quoted toll road and

Sachs

Co., Paine, Webber, Jackson &

centered

to /yield from

Weeks, Hayden,

Co., Inc., Harriman Rip¬

the

and

Metropolitan Dallas Corp.

iteoffered

Curtis, Wm. Blair & Co., Domin¬

All

Weld

White,

Phelps, Fenn & Co., Shields

bonds to

Co.
Other

are

Co., Bear, Stearns & Co., Horn-

blower

.■Tenner & Smith and John Nuveen

syndicate

ning

Drexel

Stuart &

The Commercial and Financial Chronicle

(672)

Thursday, August 15, 1963

Club,

WASHINGTON AND YOU

Scarborough

Hudson,

New York.
Oct. 6-9, 1963

behind-the-scenes interpreta tions

American
Annual

from the nation's capital

Oct.

(Washington, D. C.)
Association

Bankers

Convention.

20-24,

1963

(Bal

Harbour,

Miami Beach, Fla.)

WASHINGTON, D. C.—There has
V

mention

little

been

renewed

campaign

it,

but

has

There is

been

strong belief in

National

some

the

House

the

Representa-

...;

launched to curb the Federal Gov-

tives, that the Government should

ernment's

sell

vate business which

the government
No

ing

hope of stamp-.;

out competition by
Government;

J" there is genuine
of

Inroads.

Why?

Because

the

...

The Budg-

policy.

There

reports

are

will

Bureau

revise

competitive

and

practices.
of

Chamber

Commerce

ready

being

are

al-

the

scrutinized

Pentagon, and several other Fed-

petition

with

private

industry.

marine

chance

Federal
States
-an

make

issue

competition.

Chamber

United

Congress,

example, has advised Congress

that

te*

Defense

the

should

further

commercial

Department

reduce

the

and

The

Chamber

num-

industrial

/type activities it operates.
'

out

The

Commerce

*'•>. ^

been

has

efforts

and

ever

some

who

capital

The Senate Committee

ernment

staff,

Operations,

has

made

Gov-.:

through

its

investiga¬

some

tions at the direction: of Chairman

The

McClellan

Arkansas."

staff, in making art

tion, found that

trial

been made

competition

'shipyards.

from

The

the

Navy

Shipbuilders

Council of America has also

been

nating

activities

petitive

with

which

are

private

this

practice.

The staff said, however/ there are

Fight by industry against Government

competition

corn-

.industry.'

critical

has

that

plants,
147

The

old

undoubtedly other functions
*n£ carried on that should be

made

years ago

sidious

tral

Commission

study of the in-

competition

Government

(With

the

and

which
some

came

Sen

Bennett,s

under

production,

policies

new

being

estab-

Cost More

the

are

Federal

basis. It cost the Government sub-

jStantially

business

than the average private business
firm
doing
the
same
type
of

in 'many

says

these

with

Bennett,

who

ernment

However, Bureaus, agencies and,

,s^- They want to
and

*ployees
It

Several

their

em-

serv-

departments

important.

Congressmen

strong

reasons

have

for

cx-

either

eliminating altogeth-

government

has

Republican,

led

the

offered

Governors

industry

the

Sept.
•

18-20,- 1963

La.)

• .•»

•"

competition

with

government

have

substantial

amounts

.un.^S ^rouSb
including

operated

squandered

use

busi-

legally
Federal

era}

activities

which

compete

with the free enterprise system.
It

secret

that

obsolete

equip-

this

paSsage

strong

has

supporting
These

Karl

Mundt,

South'

chance

despite

year,

sponsors.

Tulane

National

1963-- (C

cast

include

Dakota;

the

;: May

Asso-^

Republican
Senator

President

Salle

South

Carolina;

Senator

Williams, Republican of
Delaware; Senator John G. Tow¬
Jack

Miller,

Texas,

and

Republican

tition.

plant

rently

National

Association.

■

Mutual

the

Washington- Hilton

Attention

Association

Stock

Brokers and Dcclers

TRADING MARKETS

Lake City,

Botany Industries

Exchange

■

•

Indian

Maxson

Head

Club

(Philadelphia, Pa.)
Philadelphia

Millsv

Electronics

Waste

Films

King

38th
Our

..a

Sept. 27, 1963 (New York City)
of

ing at the Sleepy Hollow Country

New

York

telephone

number

CAnal 6-4S92
..

inc.

LERNER & CO.,
Investment

10 Post Office

Securities

Square, Boston 9, Mass.

Telephone

Teletype

2-lfMM)

fil7

451-3438

Cove Vitamin &
Pharmaceutical

?o?vAgS

Common

1 Carl Marks & Ho. Inc.

and

Warrants

Bought—Sold—Quoted

FOREIGN

The bill has served to
put some

spotlight

(Washington,

Republican

1965

Hotel.

outing and field day at the
Huntingdon Valley Country Club,

Street.

Mutual

18th Annual Mid-

'Savings Banks 45th Annual meet¬

Supplement Oct. 17.

Municipal Bond
Club
of
New
Byllesby Securities Company, 135, York 2nd
Annual Fall Sports Out¬
South

City);

CHRONICLE'S Special FictoriaL

Huntingdon Valley, Pa.

elected

Meet--

Broadmoor Hotel.

Harry

Virginia;
Thurmond, Demo-

er,

17-18-19,

ing:-" at

Convention at the

CHICAGO. 111.—Willard C. McNitt
been

Mutual

Senators

Strom

crat

(New York

Association

co-

Senator

John

annual

PuPQlflPTlf"

YeSi?' meeting. at the.-Commodore'
Hotel.'•
-/
•;

HUbbard

(N. Y. City)

c.:. D. C.) A,y
o

Security- Traders

ciation Annual
,

Plaza

Country

SavingS Banks 44th Annual

Governors at the Hotel Utah.

....

Park

Echo

Tax

Flood Byrd, Democrat of

bill

Springs,'Colo.).i.,

,*;r

•

Bond
«_

has

Senator

Chase

Glen

Official

aAAA^°

poor management,, fense,
of

A ,V*

meas-

out

Glub.

the

Dec. 7-8, 1964

Orleans,

>■&,.

:a a ■*V;

Sept. 27, 1963

carefully

and

Firms fall meeting of the Board of

views.]

uajiy and terminate existing Fed-

of Iowa.

contentions,

own

Hotel

National

(New

*-r;'

Annual

SepL 's22-26,

reflect

coincide with the "Chronicle's"

Savings Banks

Thirteenth

future, according to. the. Pentagon.

9 TTIP^i

Senator

private

grad-

facts to support their

that

plants" More- of

will

anti-gov-

Senator Bennett says his

private industry.. They feel, with

liesses

grow and ex-

provide

makes

reducing

take

and

bureaus

pressed

Meeting

Institute.

' ."commercial

fight.

Bennett's

■

^departments do not want to stand

cases

these

plants

Wal--

testing

capacity is not available to:>compete

Association

Board

for

missiles,- ammunition

[This column is intended

by Senator

ices.

assembly and

aircraft,

may not

introduced

was

Government cannot compete with ure would establish a
^private industry on an economicframed policy to phase

-pand

.p
equipped

Investment > Bankers

the Del Monte Lodge.

ar^

Louis,

ing at the Commodore Hotel.

that

lace

The cold facts

private business

are

(Pebble Beach,

and other materials. The Pentagon

Government's Role

Utah,

•

11-13,* 1963

Calif.)

control

pri procurement

plants

Sept;

these,

(St.

Municipal Dealers spring

party

May 16-24, 1964

Meantime, there is a major the "behind the scene'' interpretation Sept.
23-24, 1963 (Salt
regarded as
helpful,
and piece of legislation pending be- from the nation's
Capital and may Or -/Utah)
subsequently resulted
in fore this Senate - Committee.
It

Governmcnt Activities
,

will

1964

National' Association

sale.

of; the

plants;:

lease

These

re-

Curh

are

rangements.'^y^

sale

Bill Would

military

our

for

sale

operated by

be-

terminated,

now

the

active

are

lished.

duced

Cen-

some recommendations

were

Hoover

are

after

one.

there

INVESTMENT FIELD

Defense Department industrial

termi- of

St. Louis

by private business. '■IN
say

22-23-24,

Mo.)

EVENTS

satisfactorily

can *

Apr.

COMING

with

industrial

Military officials

evalua-

some progress

reducing

that

be carried out

particularly critical of the indus-

says

Even

than $100 billion.

continued,

commercial

-are

investments

Pentagon

possible, military participa¬
in

widely from $30 billion to' plants

range

will

activities

The

the objective of reducing, where-

studying the competition that the
government

the Shamrock Hilton Hotel.

Section April 30.

policies.

tion

Congress

Association Annual Convention at

CHRONICLE'S Special Pictorial

trucking,

estimated

The

where

government

Department
almost

competition

all

compeof
of

exists,-is

De-

the
cur--

re-examining its competi-

Texas Group Investment. Bankers

this report—I almost feel

Vlike buying stock in this lousy company myself!" '

dozens

air

*}l.

and warehousing,

John

rail,

of-Mutual

Banks 17th Mid-Year

April 8-9-10; 1964:(Houston, Tex.)

competing

transportation,

Association

Saying

meeting;at- the Commodore Hotel,

involved

and

6^119;/;^.:.;^^-.^.^^

2-3, 1963 (New York City)

National
'

tive

include

members

Private industry has seized the

Dec.

"The^ditf awdriderfuL job

paint,

Supplement

govern-

government

activities

eral agencies where there is com-

lumber,

Other

functions

■

maintenance

•-

Hollywood Beach Hotel.

CHRONICLlK's Special Pictorial

research

of other products.

Forcing the Issue
Commercial

>'"

9 ^3-. 4Yf o 11 ^ wo od.JB e ac Ii,

the

v.;; —

transporta-

Club:

University

and

Dinner

Investm'rat 'B.ankers; vAssoelatron
' America
'Annual Convention,

laboratories.

equipment

lium,
U.

such

officers

new

„

°ur government is engaged in
manufacture of ammunition,
missiles, aircraft, furniture, he¬

effort to stop some of the cur-

rent

activities

d "

in-

;structions to Federal agencies
an

and

development^

Uon

the

operated

employees

and

e.t Bureau sets the overall compethat

ment

Exchange

of members

the ,Governments.^e-governmebfis~also

^viewing

commercial operations.

titive

plants

and

./•

Stock

City)

There are literall*
government-owned fac lit.es

Bureau of the .-Budget,, as
outgrowth of the-complaints,'

A...

....

Governors'

Decf 1

•

Govew-i,

Variety of Businesses
■

agencies ;are." being; forced

■

•

■

election

governors;

U ni t e d

Government-. Conducts, a W.de
:

will

make

the

from

'The

•*

they

.in
to'rovrew-their business activities,-private'indusr
Furthermore,- Congress is listen- try.
These include shipyards,
ing to new industry complaints.
Plants . operated -by contractors

the

States Government..*,-

areas

competition'

Private industry is making some

< imrnt

Association

jobs

the

Hotel.
A.

■

Firms Annual Meeting

inroads

Any

where

economy

■

industry

let

and

help private industry to fight the

Fed-

concern

private

our

the

Nevertheless,

government-in-business hurts, i
f.-.
-i-'.v
'

plants

cheaper.

going.

has any

one

eral

private

helps to keep

its

many

Americana

„

for

\.V

pri-

with

Bank

Nov. 20, 1963 (New York

competition

Association

Women 41st annual convention at

of Congress, particular-

quarters

SECURITIES

20 BROAD STREET

TEL: HANOVER 2-0050

•

SPECIALISTS

NEW YORK 5, N. Y.

Annual Report available
on

request.

TELETYPE 212-571-1685

HILL, THOMPSON & CO.,

INC.*

70 Wall Street, New York 5, N. Y.
Tel. WH 4-4540

_•

Tele. 212 571-1708

Full text of Commercial and Financial Chronicle : August 15, 1963, Vol. 198, No. 6290

FRASER