Full text of Commercial and Financial Chronicle : August 18, 1960, Vol. 192, No. 5978

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ESTABLISHED

UNIVERSITY

MICHIGAN

18S9

BUSINESS ADMINISTRATJM
library;

Volume

Number

192

New York 7, N. Y.,

5978

AS WE SEE IT

Editorial

Insisting that "certainly

we can

not adjourn the public

in candor that at

now

demands. It must also be said

points at least the program thus
laid out by the President is vastly better than the sort
of wild legislating that some of the more influential
Democratic political leaders have of late been demand¬
ing. The fact is that among the measures the President
is now demanding at this session some are really and
definitely in the public interest and should have been
on

„

some

the statute books

long

More Enthusiasm, if

•

In articles

present

their views

the economic prospects for

as to

cific roads and the industry
this

symposium,

as a

regular

whole.

annual

spe¬

Participants in

feature

THE

CHRONICLE, include the Chairman of the I. C. C. and
the

chief executives of

It may be assumed that the total demand for
freight transportation services will increase as the

representative cross-section of

the nation's railroads and supplying companies.
The

statements

begin herewith—

level of economic activity rises.
Despite the fact
that there has been some decline in the railroad's

share of total intercity traffic in recent years, the
trend of railroad ton-miles has been generally up¬
ward. Thus rail carriers are likely to benefit from

WINCHELL

JOHN

HON.

What the

political consequences of all this will be, we
gladly leave to others better qualified to judge or to
guess. For our own part we should (Continued on page 32)

Chairman, Interstate Commerce Commission
Washington, D. C.

increase in general economic activity.

any

Several developments indicate that the rail lines
The

outlook

primarily
and

for

the

railroad

industry

depends

making new or renewed efforts to maintain
improve their position. Taking advantage of
technological innovations they are investing in
new plants and equipment to improve service and
are

the growth of economic activity
of railroad participation in trans¬

upon

the degree

portation services required to support this activity.
The postwar period has been
marked
by an expansion of
economic activity, the continu¬
ance or improvement of which
is generally anticipated.
The
economy during the first quar¬
of

ter

the

showed

1960

recovery

cars, automatic classification
of centralized traffic control,

decided

through

Gross Na¬
dropped sharp¬

ly in the third quarter of 1959,
reflecting the results of the

t
'

protracted steel strike which
began on July 15. GNP in¬
creased only moderately from
an annual rate of $480.0 billion
in

the

third

quarter to $483.3
final
quarter

Housing,

used facilities.

innovations

BANK LIMITED

Hates have been adjusted or rate
to attract new traffic or to

total

Hon. J. H. Winchell

intercity freight traffic, which has averaged
one percentage point annually in the
post¬
period. In the passenger field, the major prob¬
of the railroads is to eliminate losses from

about

(1959 prices). A distinct improvement occurred in
1960, when GNP rose to $495.9
billion, compared with $476.3 billion during the
corresponding period of 1959.
Preliminary estimates indicate only a small in¬
crease in GNP during the second quarter of 1960—

war

lem

unprofitable suburban and intercity services.
J
Two developments in suburban transportation
could
run:

benefit

the

Head

STATE

Office:

AND

State,

MUNICIPAL

BONDS

Branches

PAKISTAN,

in:

THE FIRST NATIONAL CITY BANK

CEYLON,

KENYA, TANGANYIKA,

BURMA,

ZANZIBAR,

NORTHERN AND SOUTHERN

New York 15

RHODESIA

Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beack,
Oceanside, Pasadena, Pomona, Redlaads,
Riverside, San Diego, Santa Ana,
Santa Monica, Wkittier

OF NEW YORK

Inquiries Invited

Bond Dept.

Teletype: NY 1-708

To Dealers, Banks and Brokers

DISTRIBUTOR

TX-Watson&Co.
ESTABLISHED

Exchange

American Stock

Exchange

Correspondent

NEW

STREET

YORK 4,

N. Y.

—

BANK

Pershing A Co.

•

PERTH AMBOY

HAnover 2-6000

offer

to
buy the above rights
expire on September 16,
1960 at the current market.

Direct

Private

Wires

Toronto^

Montreal, Winnipeg, Calgary,

Commission Orders Executed On All
Canadian Exchanges

Vancouver,

Victoria and

Halifax

DIRECT VIRES TO MONTREAL AND TORONTO

Goodbody

Co.

2 BROADWAY
NEW YORK V

1 NORTH LA SALLE ST.

CHICAGO

Dominion Securities
Grporattom
Associate Member American Stock

Exchange

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

BONDS

MUNICIPAL
FOR

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

Chase Manhattan

which

Teletype NY 1-2270

BROAD

THE

Southern

CANADIAN DEPARTMENT

Department

Rights

canadian
Block Inquiries Invited

New York Stock

Bond

The Bank of Nova Scotia

securities
Members

New York

1832

Notes

California Securities

Net Active Markets Maintained

it®

Exchange
Exchange

UGANDA, ADEN, SOMALIA,

30 Broad Street

Agency
Bonds and

Members Pacific Coast

Offices

KENYA, UGANDA, ZANZIBAR

BOND DEPARTMENT

Hope Street, Los Angeles 17,

Members New York Stock E*xchange

Bankers to the Government in: ADEN,

INDIA,

Co.

Associate Member American Stock

SQUARE, S.W.I.

COMPANY

So.

623

California

STREET, S.W.I.

13 ST. JAMES'S

NEW YORK

&otrfhwe&t

industry in the long
(Continued on page 18)

Housing

London Branches

CHEMICAL BANK

FIRST

railroad

First, cities may in-

Lester, Ryons

26, BISHOPSGATE, LONDON, K.O.S.

HAnover 2-3700

DJSAXjZSKI

Certain

devised

NATIONAL AND GRINDLAYS

Municipal

UNDERWRITER

rapidly.

Municipal

54 PARLIAMENT

TRUST

developing

and Public

Securities
telephone:

actively pursuing "rationalization" of
their systems through plans for consolidation with
other carriers and elimination of duplicate or little—

U. S. Government,
Public

greater use

are

RAILROAD INDUSTRY FEATURED IN THIS ISSUE

State and

regain traffic lost to competitors.
I.'.
These and related developments could possibly
stem the decline in the proportion of railroad to

the

service

railroads

year.

Product

yards,

and development of
automatic data processing systems.
The "piggy¬
back" principle which combines the advantages of
highways and railways in providing coordinated

from the last half of

tional

operating efficiency. Examples include the instal¬
lation of improved freight and passenger-carrying

the first quarter of

...

Copy

level of $496.1 billion. Business expenditures
plant and equipment increased in the first two
quarters of 1960; and present estimates indicate a
continued advance in the third quarter. Federal
expenditures in the defense and defense - related
sectors conceivably could rise substantially.
to

especially ■written for THE CHRONICLE, in¬

dividuals intimately identified with the nation's carriers

billion

ago.

Cents

Outlook for the Railroad Industry

to pass a

action of the sort he

Price 50

How Leading Authorities View

interest," the President calls vigorously

upon Congress
long list of measures, most of which were rec¬
ommended by him early this year and are now either
buried by legislative maneuvering or else so modified
that the President is no longer satisfied with them. The
Chief Executive with warrant says that though the list
is long (considering the time at the disposal of Congress)
the task of coping with it is quite different from that of
trying to begin from scratch and formulating policies
and framing legislation to meet problems of this sort.
Some of his proposed laws have been in the hands of
Congress for years, he reminds the lawmakers, and ac¬
cording to the President the need for passage of them
is no less urgent by reason of the passage of time or the
contingencies of the political situation of the day.
Naturally, the action of the President is being hailed
by the Democrats as a political move designed to aid
the Republican party in November, and in some respects
and probably in some degree this charge is well founded.
The fact is, though, that the Chief Executive has long
urged such action upon a Congress under the control of
the political opposition, and it must be presumed that
regardless of the political campaigns now getting under
way, he is convinced that the public interest demands

Thursday, August 18, 1960

CALIFORNIA'S

{

CIVIC IMPROVEMENT

MUNICIPAL BOND DEPARTMENT

BANK OF AMERICA
N.T. & S.A

SAN FRANCISCO

•

LOS ANGELES

Financial Chronicle

The Commercial and

only

Brokers, Dealers

For Banks,

The Security
in the investment

I Like Best.

Louisiana Securities

Investment

dollar means an
increase in the annual net profits,
before income tax, of the Cana¬
dian Newsprint Industry to the
tune of about $7 million.

value of the U. S.

MARKETS

Positions in

Montreal, Canada

than

Analyst, Kippen & Co. Inc.

leading O-T-C issues.

Nationwide facilities for

of all

broadest coverage

Abitibi Power & Paper

In summary,

Convertible Debentures

Debentures

are

convertible
the h

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Wire System

Nationwide Private

$40

share) of Abi¬
tibi Power &
Paper Com-

at the
per $1,principal

p a n y

rates

Direct wires

per

and

for

Paper

increase of about 15%.

giants

Electric.

During the last few months the
shares of Abitibi Power

and

feat

common

Tobias Gruen

Motorola

General

and

This has been no mean
it
is especially note¬

highly popular with worthy when one considers that
Aerotron has only been actively
professional investors, as indicated
benture shown in the accompany¬
competing for some three to four
by a substantial amount of buying
ing table.
by Canadian Mutual Funds. The years. Now that the basic develop¬
Abitibi Power & Paper is one of
convertible debentures, of course, mental period is over, Aerotron is
the world's largest manufacturers
able to offer a number of com¬
are
of a higher quality than the
binations among its various trans¬
of pulp and paper products and common shares.
Canada's largest producer
of
For
investors
interested
in a ceivers, base stations, remote con¬
0 0 0

GROSSMAN
& CO. INC.

STOCKS
For current information
Call

Dealers Ass'n

BONDS
Bids

Dealers)

(To Brokers and
—

The Canadian

Odd Lots

★

—

Exchange Place, New

York 5

WHitehall 3-7830

P/ione:

Newsprint Indus¬

for

print,

has

faced

with

problem.

time

some

Paper

the

Securities Company

part of

con¬

Affiliate of

Abitibi Power & Paper
Canadian newsprint

and

also

are

their

traded in the Over-

the-Counter Market.

American Furniture

Bassett Furniture Industries
Life Insurance Co. of Va.

Commonwealth Natural Gas

SIRADER and COMPANY, Inc.
VA.

LYNCHBURG,
LD

Private

Wire to New

newsprint,

York City •«*

States'

registered a
in the first

5.7%

ECONOMY?

EXPANDING

Such

consump¬

•

••

'• '. ;•

• ■

....

est

has

nation,

vast

untapped

analysis

resources!

Its industry and popu¬

lation

constantly expanding.

are

Nesbitt, Thomson
pany,

and

Com¬

Inc., through a network of
Canada, the U. S., and

offices in

Europe, is in constant touch with
all types

of Canadian investment

possibilities

—

and
bonds

government \

municipal issues, corporate
and stocks.

Nesbitt,
pany

and

Com¬

is always ready to help in¬

stitutional
in

Thomson

their

corporate investors-*

Canadian

and will be

transactions,

equally glad to fur¬

nish any information

about Cana¬

dian investment.

p r

Sept. 15/60
Sept. 15/63

50.00

Sept. 15/66

truly special situation.
First of all, what type of

AND COMPANY, INC.
25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4

BOSTON 10

these

Canadian going

concern with
zation of $134,750

the

after

total capitali¬
by November

industrial communications
it

able

where

20 higher than that of about
five-months ago. It has been esti¬

foothold

with

AM, FM

VHF sets.

over

mated that every rise of 10

(This is under
as

in the

Here it

was

its

buy,

any

establish

newly designed
-

that the engineering

circumstances to be construed as an

solicitation of an offer to

James Talcott, Inc.
NEW YORK

221 Fourth Avenue

panies all

Chicago

•

Detroit • Boston

the

offer to sell,

security referred to herein.)

•

Atlanta t Los Angelas

were

able to sub¬

by leading

-to«R ,A%,

com¬

the world. This is
compliment. Moreover,

over

small

ORegon 7-3000

•

Other Talcott Offices Serving:,

com¬

basis of

performance, size,
this time, to the
knowledge, there are still
no comparable sets available from
any manufacturer.

and

price,

writer's

In marketing, Aerotron has ap¬
proximately 25 major distributors
who

and

territories.

tributors, after
to

although

dealers

sales force.

dis¬

careful selection

each

United

These

act principally

process,

salers

the

most

cover

States

whole¬

their

utilizes

his

areas

Over-the-Counter

own

Each distributor must

Newsprint
production
was
6%
be technically competent and well
higher, and shipments were about 1955. In the ensuing months man¬
11% higher, compared with the agement decided to switch out of qualified to handle the servicing
of Aerotron users in his
region
corresponding month in 1959.
the aircraft radio field and into
mobile

specialists.

inter¬
of

one

sets

be offered

could
com¬

pany is Aeronautical Electronics?
Originally it was incorporated in
1946 in
Raleigh, North Carolina
as
a designer, seller and installer
of
custom
radio
equipment for
Canadian
Newsprint
Production aircraft in the then
large and fast
amounted to 3,312,505 tons com¬
growing non-airline segment of
pared with 3,089,085 tons for the the aviation industry. The young
corresponding period in 1959, an
company under the creative and
increase of over 7%. Shipments
energetic leadership of President
for the first half year were up
Charles R. Browning was able to
7.3% from the corresponding pe¬
grow from a minuscule corporate
riod
of
1959
at
3,258,133
tons infant
originally
capitalized >at
against
3,037,636
tons.
In
the $2,300 to a considerably larger

noting that the

enced commercial

examples of a stantially outperform the best that

have shown con¬
siderable gains during the last few
months. For the first half of 1960

It is also worth

action

and the finest co-op¬

trials in which the RCA

(Aerotron) sets

rare

present price of the U. S. dollar is

NESBITT, THOMSON

been awarded to RCA

furnish

petitive

Clyde L. Green

shipments

month of June this year,

the

for

sets

division

tracts have

Canadian Newsprint Production

and

Talcott
You'll get fast

financing and credit

domestic producers of
radios and radio equipment: RCA.
With
the
Aerotron
line
selling
under the RCA name, foreign con¬

one

those

largest

This

here.

Talk

further

national

esented

one

Factoring

eration from experi¬

manufactures

necessar¬

the

Financing 0R

almost

interesting, but little
known, fact is that Aerotron even

apply to
such
equities
•

lines,

many

who operates vehicles can
profitably utilize a communica¬
tions
link
with these vehicles;
construction companies, readymix cement plants, fuel oil com¬
panies, farmers, taxi operators,
manufacturing plants, vending
machine services, appliance repair
organizations, laundries, civil de¬
fense units, fire and police depart¬
ments, airports, and many others.

ily

47.62

$45.45

the

conven¬

not

21__

Commercial

tional security

On or Before

Sh.

will

grounds that
the yardsticks

six

■

per

but

defend

favorable.

No. of Sbs.

IS for

Company, Yellow Cab, and the
S. Department of Agriculture.

take

Principal Price

Canada, the world's second larg¬

CALL

Motors, The Martin Company, The
State
of
Illinois, The Pure Oil

posi¬
tion I not only

plies about three quarters of U. S.
demand, will obviously be highly
■■■'■

WHEN THE

Some familiar names are: General

cally

tinues, its effects on the Canadian
newsprint industry, which sup¬

INTERESTED IN CANADA'S

earn-

basi¬
sound.

ings

good gain of
months of
1960.
If this improvement in the
United States' consumption con¬

tion

must
endorse a
price
currently around 40

times

shown by the fact

the United

the

anyone

Aeronautical Elec¬
"the
security I like

best,"
.t-i-Goj-,

may now prove to be a source of
strength,
especially as demand
picks up. Another bright feature
is the indication of an increase in
the United States' consumption of

that

TWX LY 77

—5-2527—

tronics

and 1958,

gaged

In order to cite

dation, which was a contributory
factor to the slump experienced
by this industry in 1957

N.Y. 6 COrtlandt 7-5680

Aerotron finds its customers en¬

capacity.
CLYDE L. GREEN
;
1957, 1958 and
Research Dept.,
the beginning of 1959 the excess
J. Lee Peeler & Company, Inc.,
capacity problem of the Industry
Durham, N. C.
was acute, at present, the industry
has turned the corner, and better Aeronautical Electronics, Inc.
times lie ahead. Inventory liqui¬

Interest In

Investment Bankers

111 Broadway,

partial explanation of its success
and popularity among the grow¬
ing array of individuals concerned
with the industrial uses of radio.

However, though in

Trading

Tokyo, Japan
Brokers &

engineering andrf
technical 'assistance, a significant

operating

producers are currently
at
levels
below
their

Yamaichi Securities Co., Ltd.

ice in the form of

been portfolio.

other

York, Inc.

of New

high standards utilized in dealer
selection, Aerotron is always able
to offer its customers expert serv-^'

Abitibi

write

of accessory

because

Further,

items.

They are listed on the
capacity various Canadian Stock Exchanges

excess

debentures

vertible
Power

inclusion

the

mend

try, which accounts for about 43%
of the world's production of news¬

and

1-2762

Teletype No. NY

trol units and full line

Yamaichi

& Paper were

newsprint and fine paper. News¬ high quality security with reason¬
print production represented about ably good long term capital ap¬
72%
of the total production of
preciation prospects and an attrac¬
Abitibi Power & Paper in 1959.
tive yield of over 4%, I recom¬

Members

Security

branch offices

JAPANESE

amount of de¬

S. WEINBERG,

to our

meshed in order to

were

world to utilize a high frequency
of Abitibi crystal filter in receiving sets,
1959 were Aerotron soon captured a signifi¬
$2.72 as compared with $2.19 for cant portion of a specialized mar¬
1958, a rise of 25%: Again, net ket and then moved steadily up¬
profits in the six months ended wards in terms of relative sales so
June 30th, 1960 amounted to $1.40 that today it reportedly occupies
in an im¬
per share, compared with $1.22 in, third or fourth place
the corresponding period of 1959, portant growth sector led by such

selling

around

NY 14557

continue.

Power

(cur¬

rently

Exchange

New York 5
Teletype NY 1-40

several

talents

long

Earnings

120 Broadway,
WOrth 4-2300

will

common

•

Associate Member
American Stock

option, into
'

1920

Established

A:;:-.

1 d

at
r's

York 6, N. Y.

La.-Birmingham, Alac
Mobile, Ala.

creative men
actively
compete in a relatively new and
expanding field. By becoming the
sound, and this upward trend
first radio
manufacturer in the

debentures are

Stock Exchange

19 Rector St., New

New Orleans,

term prospects for
the Canadian Newsprint Industry
the

York Stock Exchange

Members New

Members American

Hflnover 2-0700

Furthermore, it is my belief

1960.
that

yield

Steiner, Rouse & Co!

Inc.—

Electronics,

price

af¬

$4.50

Bought—Sold—Quoted

ham, N. C. (Page 2)

of lar, indicate that the company can
The annual interest look forward to a good year in

around $101:

Analyst,
Montreal,

Clyde L. Green, Research Dept.,
J. Lee Peeler & Co., Inc., Dur¬

the rise in produc¬

of 4.4%. These

Corporation

Canada.

Aeronautical

tion,

current

this

tractive

fords

New York Hanseatic

Kippen

Tobias

—

Investment
& Co. Inc.,
(Page 2)

Gruen,
v

consumption and shipments
The
convertible
debentures
of of the Newsprint Industry and the
increase in value of the U. S. dol¬
Abitibi Power & Paper appear at¬

O-T-C markets.

Company

Co., Con¬

Abitibi Power & Paper

vertible

Alabama &

Selections

Their

for favoring a particular security.

TOBIAS GRUEN

•

Thursday, August 18, 1960

Participants and

Forum

in which, each week, a

participate and give their reasons

500

Week's

This

•

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

A continuous forum

Professional Service

•

(650)

Quotation Services
for 47 Years

This naturally reduces the "down
time"

the

operational;

rare

instances when

difficulties

are

en¬

countered and obviates the return
of sets to the factory when
repair
and

maintenance

necessary.
This
tion
is •-being
::

: r

are

occasionally

dealer

organiza¬

constantly

l'Continued

National Quotation Bureau
Incorporated
...

46 Front Street

page

New York 4,

augOHIOAao

Established 1911

BAN

N. Y.

FRANCIflOO

Volume

192

Number

5978

The

...

Commercial and Financial Chronicle

(651)

The Causes and Cure

CONTENTS

For the Railroads' Ills

uLICHTfnSIfll

By Dr. Burton N. Behling,* Economist, Association of American

AND

Articles and News

Railroads, Washington, D. C.
Rail

economist

railroads

how

warns

longer

capacity available prior to World War 81.
have operated so closely

and for

stringency that it is not in
'

have

PSYCHO

the

An Investment Policy for Today's
Cloudy Conditions

reserve

The industry is said to

position to provide

—August

-—that's

Huber__

traders

when

Business Will Need More External Capital for the
1960s

substantial

any

COMPANY

page

long at the margins of financial

what
say

some

buy their dogs.

reserve

dapability to meet a sudden emergency.

,T—Edmund

Blamed for the '

industry's low rate of return

net investment

(less than 3% in

1958

months ending

May

and

1959,

and

for

the

1950,

31,

ernment

Dr.

policies f^oring railroads'

competitors."

duPont

j._—

•

Obsolete Securities Dept.

Manpower Trends and Automation's Impact

—Louis

2.5%) is the "unequal competitive conditions fostered by

was

1960

gov¬

Buckley

highway,

and

air

toward mergers,

still

carriers

water

reimburse

would

cost

tax-

the author inveighs against existing barriers which
to

provide a "complete transportation service."

harcourt,

about the railroad industry

Though pleased with ICG's greater receptiveness

brace & co.*

IIow Leading Authorities View Outlook for the Railroad
r

Industry (Articles especially written for the Chronicle)..Cover

metropolitan

The Causes and Cure of the Railroads' Ills

The railroads today are vastly dif¬
ferent from those of yesteryear.
The

increased

and

Three

above others:

(1) Growth of com¬

capacity of

and

some

motive

respects.

many

virtually

steam to diesel

the

tives in tractive

the

be noted that. Ih\ all parts

with

there1 is

country

revival

interest

respect

and

strong
activity

the

'V.'

The

However,

number

lo¬

the

the average

;

—Harry Greenfield

starting /
Another

with

the

1920's

"Survey" of Morgan Guaranty Trust Co

which

shall
in

flected

vice

in substantially

and'

continued

importantrespects.

increase in

ments

proved communications, signalling
and yard facilities, stronger rail
and track structures, and greater

road

the

business,

later, is re¬
declining number

length and speed of trains, which
increased

have

the

effective

has

mileage of electrified lines
grown

Technology

and

years.

noted

of which
The
reflect

some

statistically.

averages

course

miles

this

especially

rise

ages

and
tion

significant technological

1956.

some

With

erages recede

road

efficiency and

permits heavier and faster
to

Although it is pend

operate.

shown

statistically,

there have also been increases in

Electronics Assoc.

Stocks-—

Bookshelf

—

Bevis Shell Homes

48
8

Einzig: "Revival of Optimism

London Stock Exchange"

From Washington Ahead of the News—Carlisle Bargeron.

Singer, Bean

Indications

also

Mutual

Current

Business

Activity

Funds

growth of mechanical sig¬

indicates

technological

1957

savings
as

opera¬

power.

the

News About Banks and Bankers--—

Direct Wires to

Chicago

change

Observations—A.

Wilfred

Our Reporter

Governments

Continued

the

Public

have

specialized in

Utility

Security

Offerings

Salesman's Corner
.

and

You—By Wallace Streete__

The

State of Trade and Industry

Washington and You

page

*All Issues

The

Twice

Weekly

DANA

CHRONICLE

GEORGE J.

25,

Albany
Nashville

Boston
Newark

TELETYPE NY 1-5
Chicago

Schenectady

Glens Falls
Worcester

records,

SEIBERT, Treasurer

Other

Chicago

city

news,

Office:

111.

matter Febru¬

office

post

New

Union,

Dominion

Canada,

Other

MORRISSEY, Editor

corporation

and

the

Pan-American

135

news,

bank

clearings,

etc.)
South

(Telephone

Countries,

Bank

$45.00

Salle

per

$68.00

$72.00

per

year;

per

year;

m V. FRANKEL & CO.

year.

INCORPORATED

St.,

2-0613).

and
per

Note—On

the

STate

$65.00

Other Publications

Every Thursday (general news and ad¬
vertising issue) and every Monday (com->
plete statistical issue — market quotation
state

second-class

Subscription Rates

Thursday, August 18, 1960

ST., NEW YORK 4, N. Y.

1942,

Subscriptions in United States,
U.
Possessions,
Territories
and
Members

9576

SEIBERT, President

WILLIAM DANA

Members New York Stock Exchange

Reentered
ary

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

COMPANY, Publishers

REctor 2-9570
D.

William B. Dana

Company

Park Place, New York 7, N. Y.

CLAUDE

1960 by

COMMERCIAL and

FINANCIAL

Spencer Trask & Co.
BROAD

shift

TELEPHONE HAnover 24300

Corporation

Tax-Exempt Bond Market—George L. Hamilton

WILLIAM B.

Astrotherm

Security I Like Best

The

Reg. U. S. Patent Office

1868

St. Louis

Securities

Prospective
Security

PREFERRED STOCKS

Founded

Philadelphia

San Francisco
on

Dallas

Cleveland

Los Angeles

Securities Now in Registration

Published

For many years we

May—

Sav¬

of $877 million

result

inc.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 14844

NSTA Notes

The Market

demonstrated in
diesel

mackie,

HA 2-9000

de¬

ings in fuel and repair costs only

nalling devices is another mani¬ in
festation

economy

efficiency

Bowling

utiliza¬

high volume.

Improved
tions

1941-1945

1958, indicating that rail¬

capacity of bridges and other economies of

structures.
The

Businessman's

recession year

which

the

Bank and Insurance

of the performance av¬

readily

aver-,

years

lower

such

trains

car-day

per

change is the use of heavier rail

not

Permachem Corp.

__Cover

Amer. Int'l

large traffic volume—e.g., net ton-"

have

economy

different

recent

country, at least up to now.
A

(Editorial)—

not

taken

See It

Dealer-Broker Investment Recommendations

also, that the performance
The

Struthers-Wells

Regular Features

Coming Events in the Investment Field

greater speeds, heavier loads per
car,
longer trains, and greater
availability and service output of
locomotives.
It
is
to
be
noted,

practical capacity of railroad fa¬
cilities.

operations,
be

can

performance

—r

refer

and
continuous improve¬
in the efficiency of rail¬

many

miles of line is involved—e.g., im¬

the

Over the years there have been

than

DIgby 4-4970

As We
of

has

Broadway, New York 5

its present
of passenger-train cars.
the early part of this
century. However, the capacity of
Efficiency Factors
this plant for transportation ser¬
lished

form

Changes in Counties' Population Analyzed by U. S. Bureau of

have in¬

trend

passenger

J.F.ReilIy&Co.,Inc.

freight'

per car

downward

railroad

or in their capability. The
basic railroad network was estab¬

growth

request

considerable de¬

number

load

Business Outlook Clouded Is View Expressed in August

substantially.

The

*Prospectus

Projection

The

good

and

the Census

but the capacity

cars,

Sales: Perspective

availability of diesel

there has been
in

"Volcano"—Roger W. Babson

diesel locomo¬

known.

compared

cline

Cuban

Electronics Factory

rupted service.
.

railroad

trends

been

for long hours of uninter-„

power

capehart corp.

from

improvement factor

greater

creased

is railroad mileage

Nor

indicator

has

misleading.
effort

well

important

railroad mergers

consolidations.

and

the

superiority of the

Equipment

basic atomics

Cobleigh

rail-.;

shift

engines.

decline

power

rpay,

There

comotive units is

Nearly every railroad system
existing today is a combination of
pre-existing segments. The con¬
solidation process4srnearly as old
as the industry itself. - At present,

Problems and Potentials of the Railroad
Industry

has greatly
operations
in

complete

permachem corp.

power

railroad

changed

broadcasting

____

Study Prepared by Association of American Railroads

—Ira U.

revolution

Behling

the

single-track line by'

Rail Mergers Gathering Greater Momentum
Pace, According to

ex¬

increases

control

recent

road

them very severely.
and

For

to 80%.
The

nological developments pertaining
to virtually all aspects of railroad
operations, and (3) Increasing fi¬
nancial stringencies affecting the

Plant

traffic

ized

generally

operations.

—Burton

ample, the installation of central-

petition stimulated by government
expenditures on behalf of other
means of transportation, (2) Tech¬

railroads

railroad

the Second World
changes stand
out

since

capacity, affecting
efficiency and the safety

both the

change has accel¬
erated in the recent period, espe¬
of

pace

4-6551

To correct this,

prevent rails from utilizing other means or tools of transportation

War.

STREET, NEW YORK

Behling would institute a system of user charges under which

provided facilities.

cially

WALL

Telephone: WHitehall

rate

Quotation

year.

account

— Monthly,
Postage extra).-

the

fluctuations

foreign

exchange,
remittances
for
subscriptions and
advertisements

must

made

New

39 BROADWAY, NEW YORK 6

Record

(Foreign

York

funds.

WHitehall 3-6633

Teletype NY 1-4040 &

1-3540

Financial Chronicle

The Commercial and

(652)

Thursday, August 18, 1960

Steel Production

unwarranted.

OBSERVATIONS...

place, even on
discloses

this

buck."

the

spuri¬
ous
as
a
speculation-investment
dividing line, since that marking
of the interval for gaining
the

INVESTOR FLUNKS AGAIN

THE

cards"

tests

investor

After

knowledge of both the securities

"mountain

this

all

mov¬

ing" (and despite the bias on the

markets workings and the proper¬

part of both the questioners and
the' questioned in a poll of this
money, give him more bad marks kind),
the Exchange authorities
—despite the vast expenditure of find themselves coming forth with
money and effort which have been the following "mice" of qualitative
lavished on his attempted educa¬ results.
which

ties

his

staked

has

tion.

'According to the pollsters, the
discouraging results add percentage of the population that
interest in the newly announced "could
describe
what
the
Ex¬
The

project to study the bases of stock
market fluctuations, set up by the
University of Chicago with $50,000
from Merrill, Lynch, Pierce, Fenner &
Smith, Inc.-—and the "es¬
sential" use of a Univac computer.
Let

opinion

public

"What is
constitutes

the

But the greatest concern to the
community, if not to the Exchange
authorities, should ensue from the
populace's disregard of invest¬
ment, and the maintenance of its
speculative role — d espite all t}ie
preachments about the oasis for
"rainy day" savings conservation
afforded by the "citadel of demo¬
cratic
capitalism." Among the
various
advantages applying to
the purchase of common stock,
only 18% of those questioned in¬
cluded "good dividends," 8% "se¬
curity for family, old age," and
6% "automatic re-investment of

BUYER AND IGNORANCE SUR¬

compiled

Shareholders

of America,

non-profit investors'

tion under

revived

the

VEY,"
United

organiza¬

the aegis of

Benjamin

Javits, President; (2) analyze
startling results;

the causes of the
and

(3) suggest significant impli¬
of
the said results and

cations
causes.

Stock

The

constitutes
tered

Exchange's
second

the public

report
cen¬

survey

attitudes about

the mechanics and motivations of

dividends"

Significantly, it comes
after
an
8-year
interval
of a
record
bull
market, a booming
economy, a wide variety of edu¬
cational programs on which the
Exchange
itself
has
expended
$12 million during the past decade
and the Wall Street community
many millions more, a record ex¬
pansion of Member Firm offices
and services, stock popularization
by the Mutual Funds, the Monthly
Investment
Plan, spawning "In¬
vestment Clubs," and a welter of

enamored

investing.

"HOW-TO"

books

lit¬

other

and

erature.

The disclosed results follow im¬

pressive

growth in
to
12^

population,
1959. (But
the

these

million

qualification

million
who

stockholder

are

that

since

1.2

—

which

interval

holder

population has grown

the

total

the

"opportunity

opinion of this writer, if not
spokesmen) in
Ninth

its

Study

June

poll

taken

3, 1959. President Funston's
satisfaction from the fact

great

reported
by

only 40%).

participants

the

"intended" for six-months

holding, seemed to

over

APPEARING AS

completely

OWNERS

Held

New

persons

whose

the

records

and

names

the

above

property in amounts of

last

named

known addresses

banking

twenty-five dollais

consumers' goods and

New

York)

forth

below

of
set

are

unclaimed

DEPOSITS

West

2101

Kelly, Miss Catherine

252 West 133rd Stret, New York 30, N. Y.

Kipnis, Morris i/t/f Ivan Kipnis

835

Meyers,

3339

Arthur B.

Christopher Street, New York, N. Y.
East 46th Street, New York, N. Y.
Voorhies

Troy Avenue, Brooklyn,
Hull Avenue,

Rachofsky, Mrs. Rose

2178 Strauss

Schaeffer, Dorothy

1293 East New York

Sitzer

Rose and Annie

7th

New York 57, N. Y.

114 East

Street, Brooklyn 18, N. Y.

Street,

Brooklyn 12, N. Y.
Avenue, Brooklyn, N. Y.

Unknown

Miss Anna II.

Benjamin

Street, New York, N. Y.

180 West 93rd Street,
HELD

OR OWING

INSTRUMENTS

FOR
OR

THE

New York 25, N. Y.

PAYMENT

CERTIFIED

Collector of Internal Revenue

Section

6uch
the

bank,

such
Such

Address Unknown

unclaimed

301

notice

located

abandoned

the

property

Abandoned

file

lias

and

East

been

the

State

list

public inspection
Street, in the City

Property

cpen

42nd

made

Law.

Comptroller

the

the
New

names

contained

principal
York,

pursuant

office of
Y
where

property is payable.

abandoned

property v/'ll be paid on or before October
establishing to its satisfaction their right to receive the same.
In

31st

persons

the succeeding November, and on or before the tenth
clay thereof, such unclaimed
property will be paid to Arthur Levitt, the State Comptroller, and it shall thereupon
cease

attributes, of 1958, reaching a record high
giv¬ just short of $500 billion annual

investment

services.

have never written to
the management (their employees,
as

has been hammered into

them

by Mr. Gilbert) of a company in
which they own stock; and
of
those who have written, less than
half have concerned themselves
factual

information.

deficient

the

Ex¬

liable therefor.

level

since the

during the first three
will

1960

receive

ap¬

hourly

10-cent

The

boosts.

pay

announcement

also

than investment functions.

private construction. It may be

have

level

has

since

been

actually

sions

has

announcement

the

occa¬

utilization

been

our

the

science

accelerate

the

registration of quotation changes.
Only last week another quota¬
tion-broadcasting service was an¬
nounced at the Exchange. Radio
Press International reaching the
and

Latin

America

with the Exchange,
be broadcasting directly

cooperation
now

the

Institution

p.m.7. one-minute

five-day

summary

goods

and' services

declined
second

the

almost

quarter

Network—this

Continued

"in-

on page

who will receive their first wage

1956.

increase since

About 3%

covered

the workers

wage contracts
than 19 cents

by the new

will receive more
hour

increases

while another 3% of workers will
receive less than 5 cents
The

Labor

hour.

not in¬
clude wage contracts negotiated
in the construction industry, the
service trades, finance or govern¬
Survey

does

ment. Other exclusions are settle¬

ments

involving fewer than 1,000
and
wage
changes
in

workers

non-union establishments.
Bank

Clearings Up

5.8% From

Same Week in 1959

1959, with lower defense outlays
primarily responsible for the drop.
"The

maintained,

clear the

overstocked goods and

shelves

erating

also,

investor
and

use

credit,

the

and

host

for the

those

year.

corres¬

Our pre¬

liminary totals stand at $24,785,450,164 against $23,429,331,739 for

INCREDIBLE
AKK0RD
AM-FM-SW-MB

the

are

op¬

for

profits

influences.

According to the Foreign AgriService
the
value
of

cultural

RADIO

current

availability

other

TRANSISTOR

including consumer
psychology, the rate

prospects

eventually

require higher rates of
output. But other forces

above

continuing rise in aggre¬

gate spending by consumers, busi¬
ness
and
government should, if

and

5.8%

ponding week last

understood, will be a daily sum¬
mary of quotations beamed to our U. S. Farm Exports Were Second
worldwide army over the Armed
Highest on Record
Radio

more,

rising almost
Federal

When, as now, some of these in¬
ing" stocks and over-all trading fluences are favorable and some
volume; and also a weekly five- unfavorable, the future course of
minute
market
news
round-up. business is' especially difficult to
Also to be shortly initiated, it is
foresee."

Forces

125,000

interruption,

spending

elec¬

ticker's

receive as much as
which- includes
men's clothing workers

would

cents

without

On recent

Bank clearings this week will
the private investment
expenditures
for
pro¬ show an increase compared with
a
year ago.
ducers'
durable equipment have
Preliminary figures
been rising steadily but unevenly, compiled by the Chronicle, b^sed
on
with a larger than average in¬
telegraphic advices from the
crease
in the second quarter of chief cities of the country, in¬
1960 over the first as compared dicate that for the week ended
with previous quarters. On the Saturday, Aug. 13, clearings from
cities of the
United States
other hand a gradual decline in all
residential construction has offset from which it is possible to ob¬
an
weekly
clearings will
be
irregular rise in other types tain
1959.

itself continually
stresses
the
speeding-up of its
mechanics, particularly of quota¬
Exchange

of the total covered in their sur¬
vey

sector,

and services at the state and local

The

Department report states that 15%

second quarter of

surprising to note that while gov¬
ernment
expenditures for goods

of
the day's activity in the 10 "lead¬

;

proximately

answerers

Nearly three out of four of the

from

CHECKS

Chafetz

report

survey-ees

4:05

literature

will
AMOUNTS

NEGOTIABLE

negotiated
months

advice.

Caribbean

East 29th

Labor

Department reports
that
half
of
1,100,000 workers
covered by new wage contracts

ing' broker's "research"—a sancti¬ rate in the second quarter of 1960.
fied concept — as the source of In
fact, the increase in final de¬

tronics

Avenue, Brooklyn, N. Y.

Portnoy, Jacob

Jacob

number

progress

244

Zuckerman,

investment

the

Unknown

Gleistein, Mrs. Emma M.

in Wages

Increases

The

states that only 1% of the workers
controlling Stock evaluate.
Exchange participation.
"During this process of adjust¬ affected by major collective bar¬
Mr. Javits interprets his ques¬
ment, it is important to note that gaining settlements in the first
tionnaire answers as showing that
aggregate expenditures or 'final quarter of the year will receive
70% of investors buy stocks fol¬ demands' of consumers, business no
wage
increases.
The steellowing either personal "hunches" and government, net of business workers will benefit by increases
or tipping by others. Not included
of 9 to 10 cents an hour when
inventory
accumulation,
have
in this casual tipping category, been
rising steadily from quarter their new wage contract goes into
but entitled to eye-brow raising to
quarter since the first quarter effect in December. The Labor

made

15th Street, New York 11, N.

Unknown

Tilford,

By Wage Contracts Will Receive

ment motivation

tion distribution.

entitled

from

Coplen, Mrs. Laurana B.
Daschmer, Charles L.

Sitzer,

Half of 1,100,000 Workers Covered

capital equipment. Inventory ad¬
The demonstration by the cur¬ justments in major industries are
rent Stock Exchange Survey of bound to have secondary effects
the investing public's un-educa- on employment, incomes and
tion and mis-education, is
con¬ spending over a wider area than
industries
immediately in¬
firmed
by the findings of the the
United Shareholders. They strong¬ volved. The true direction of the
ly certify the preponderance of course of business under these
the speculative in lieu of invest¬ conditions is always difficult to

rather
appear

more.

267

Baruch

Samuel

for business

Confirmation by Independent Poll

pervasive emphasis on speculative,

organization

DUE

Barr, Mrs. Marcella
Burstein,

strength of demands for

the basic

and taxes).

change's $12 million 10-year edu¬
cational
activities
is the subtly

COMMERCE

the

And

THE REASONS

York, New York

AMOUNTS

holding.

Basically

(Formerly The Moiris Plan Industrial Bank
The

the Suez crisis and

"in¬

bias over-weighting

OF CERTAIN

INDUSTRIAL BANK
>

capital gains
grossly distorts
of those holding

PERSONS

UNCLAIMED PROPERTY

Commodity Price Index

economic
Chicago. "In addition," the publi¬
boom in Europe. Wheat and rice
the cation continues, "the absence of
exports were the second largest
fourth,
and
highly. important, a significant pickup in orders for
steel
and
for certain
types of in history and lard exports were
place, it is patently absurd to
the second largest since World
classify a 180-day, or 200, or 300- machinery, a decline in construc¬
War II and
cotton exports the
day
holding as an investment tion contract awards, and a re¬
second largest in more than 25
operation (with the entire income ported lack of vigor in consumer
return more than
wiped out by purchases of some durable goods, years. Cotton accounted for 52%
of last year's $796,000,000 increase.
round-trip brokerage commissions have raised questions concerning
incurs

vestment"

with
NAMES

Business Failures

INDUSTRY

tax
United
States
farm
exports
in
the The near-term course of economic 1959-60
was
$4,515,000,000
the
activity
continues to be domi¬
proportion
for
second highest on record or only
nated by inventory readjustments,
just the prescribed 6-month pe¬
$213,000,000 smaller than the $4 riod.
In the third place, polling according to August issue of Busi¬
728,000,000 record in 1956-57 when
buyers as to their intentions in ness Comment, monthly publica¬
farm exports were higher due to
advance at the time of purchase tion of the Northern Trust Co. of

Transactions

Public

based

that 64% of the share volume was

stock¬

NOTICE

TRADE and

the

differential

their

of the Institution's

during

1956,

with

frankly

Food Price Index
Auto Production

mands in the second quarter over
quick profit").
Also surely
Further
backing the anti-in¬ the first was the largest quarterconfirming the prevalent pre-ocvestment coloration is the Share¬
to-quarter
increase
in
a
year.
cupation with capital gains to the
holders' Group findings concern¬ After
allowing
for
inventory
disregard of investment income, is
the response to the query whether ing public stock owners' ignorance changes, total expenditures rose
of the bare facts about their com¬ at the
common stock is "good protection
seasonally adjusted annual
against inflation." Of the share¬ panies. Fifty-one per cent of those rate of $9.1 billion from the, first
holders responding with an opin¬ surveyed could not name a single to the second quarter this \ year
ion, 85% felt that inflation pro¬ product or service of any com¬ compared with quarter to quarter
tection
is
$ound stock-buying pany in Which they own stock. increases of $8.2 billion, $0.2 bil¬
Of
the
other 49%
responding, lion and $5.1 billion in the three
motivation.
some
attributed aircraft to Bell previous quarters.
I
and
Howell, silver to Sterling,
The Traditional "Quick Play"
"In the consumer sector, expen¬
gasoline to General Motors, etc.
ditures have been steadily rising
This
speculation-pervaded at¬
And this haze exists in the face
for nondurable goods and serv¬
titude of the Stock Exchange com¬
of the fact that 82% say they read
ices. In the key area of durable
munity confirms important con¬
the annual reports of their cor¬
goods, however, total consumer
clusions which were revealed (in
porations, with 40% perusing the spending has been remarkably
the

individuals

only mutual funds

own

quadrupling

(against 22%

for

to be noted here

even

this

"hit

curve."

"STOCK-

and

unable

1954—are

The State of

devastatingly esoteric

Seventy-six per cent of
adult population—the same as

the

York Stock

Exchange;

stock?" still

common

question.

survey

conducted by the New

24% in 1954.

ings of the two completed surveys,
"THE INVESTORS OF TOMOR¬

ROW,"

only

risen

of the adult population from

27%

(1) cite significant find¬

has

does"

change

benefit

FINDINGS

THE

"report
of his

current independent

Two

•'

■

Retail Trade

the

place,

six-months dividing line is

'■

Carloadings

out to
"fast

buyers

second

Electric Output1

mini¬

shortest-term

the

make

much

36%

mum

WILFRED MAY

BY A.

first
these bald figures,
the

For,

highly

man

sensitive

all

precision

band

Ger

built

set, with push button choice o
AM, Short Wave and Marine Bam
broadcasts.
12
transistors, 5 diodes, var

FM,

istor; AFC; 7"
pole

telescopic

antenna,
tenna.

Plays

oval

additional

Incentive

built-in
long

6 flashlight

input jacks. Hand crafted
Ideal

and

Di
ferrit

hi-fi speaker.

antenna,

plus

range

batteries. Fou

case.

Executive

Gift boxed

Gift.

Ful

back guarantee. Order today. Amer
Express
and
Diner's
members
ma

money

ican

charge to

their

accounts.

Reg. Price

SALE

$299.95

PRICE

$J^[095 p°

HALBERSTADT&CO J30
sh^F,and St*
'Lansing, m .

Volume

192

Number

5978

The Commercial and Financial Chronicle

(653)
the

week in

same

1959. Our

parative summary for

principal
Week End

lessening, portion for corporations,

1960

$12,811,116

$11,197,048

1,280,256

1,321,673

—

1,020,000

1,061,000

—

3.9

704,035

712,806

—

1.2

■

Sees

Setback

\."

Steel

+ 14.4

By August Huber, Partner, Spencer Trask & Co., New York
City,
Members New York Stock
Exchange

turning point in steel

again,

The

Iron Age

the

basis

this time

reports.

latest

orders,

magazine

incoming

some

mills is lower than it

at that

was

time.

;

Against

the

gloomy

way.

The

magazine
steel operations will have to
up to the level of the econ¬

says,
come

the

later,

omy.

show

when

picture does
upturn will

the

September orders as yet do
the expected strength

come.

July

grams

was

com¬

599.10

nothing

vious

shows

the

ket

has

have

also

leases,
iat

the

been

with

least

pipeline re¬
project to take

some

one

300.000

diameter

There

corner.

tons

pile.

Others

large

are

ex¬

speculators

important

and

reactions
may

political
What can

emotions

likely

are

general

deficit

effect

out

Aspects

pects.

Consumer

have

continued

expenditures

high

higher

supply in the long run—
the continued seed of

the

favorable level

expenditures

for
Inflation

August Huber

Not

Beneficial

capital goods by private in¬
dustry.
Some pickup in general
business activity is indicated dur¬
ing the third and fourth quarters

Corporate Profits

pre¬

resistance

•The type of inflation inherent
level,
rallying
tendencies
developed
from
this in
such
monetary policies has from the seasonally lower summer
technical
condition
with
senti¬ benefited
corporate
profits less months. For example, steel opera¬
ment stimulated by the Federal than
most
other sectors of the tions had been at a low rate of
vious

Reserve Board action in reducing

clear cut.

declined

their

highs

there

currently exists

and

last

Thus,

year.

of
betwixt and between situation:
more

(a) While bond yields are lower
than at their peaks a few months
present

ago,

4y2%

still

returns

have

around

attraction

for

portion of investment funds, pro¬
viding stable income %nd com¬
parative safety of principal, while

(b)

Common

viewed

stocks,

whole,

when

still vul¬

are

nerable

to
many
imponderables
and consequent further
price cor¬

rections

(following intermittent
here, too, selective

rallies).
issues

But

be found with relative
The investor must de¬

can

attraction.
termine

what
his
basic
aim
is,
income and relative safety;
longer-term growth and po¬
tential capital appreciation, or (3)

(1)
(2)

the

short

term

"trader"

should operate with

edge

such

the

who

full knowl¬

comparative

risks

policy entails.

levels

basic production rates as
inventories run
down) and the
usual authoritative sources
expect

less

have

considerably in market price from

Considering

(which could later be reflected in

the

Business

The overall economic picture is
not
without its encouraging as¬

fi¬

Such

Trend

either

faltering in

economy.

its

turn

best.

budget Encouraging

recession

any

within

balanced

would resort

money

low

market reach¬

ing

various

provides

below the pre-

With

turned

policy—with

points.

less, where the feeling is the mar¬

and

this

the

psychological

investors

pretend to know

what

longer range inflation.

and

exception is stain¬

held

nancing to bolster

broken

now

momentum.

periods

party

aver-

had a 1-

age

ready

later

can

bounds of

ing

May 2. The

show

One possible

problematical at best. There is
little question, however, that dur¬

599.61

railroad

cannot

Mar.

and

the

with

pared

advance

campaign progresses.
spending should be on a be said, however, is that invest¬
large
enough
to
combat ments based on values rather than

scale

year.

campaign un¬
coming months,

the

yields

many common stocks have reacted

the

election

defense

The closing on

not

in the order books
anything of a gain in

whatever threats may loom ahead.
Whether
various
spending pro¬

immediate

But the

ear¬

this

lier

points

battle.

by the growth primarily through expan¬
Average, sion in the private sector.
In any event, both parties agree
within a shade of
low

best

candidates
will
be
loudly
widely voicing their views,
and directing charges and counter¬
charges, in the heat of verbal

Industrial

recently came
the
two
previous

fare

and

measured

will

over

changing

market,

reached

the

both

Mr. Huber concludes that com-

on good fixed income securities
equities with prospects of both adequate income and possible
longer term capital appreciation.

and

601.68

Sooner

in the immediate future.

investment policy based

Dow-Jones

status

day-to-day business, the metalworking weekly points out that
steel
is
being consumed
at
a
higher rate than new orders and
an
upturn in business is on the

not

favors

rate of
major

comments,

orders

folds

mon stocks a? a whole are vulnerable to downside corrections and

the mild upturn of two weeks ago
failed to gain momentum. In fact,
the

progressive, well managed

tary forces which promise to con¬
tinue operative in the years ahead.

Knowledgeable member of the investment community assesses the
many factors in the business and political areas which, on
balance,
are
hardly conducive to an aggressive equity investing policy at

op¬

Bond

future, as in the past, under the
longer-term economic and mone¬

Industry

erations may have to be set back

Now the issue is

likely to be continued.

companies

Revival

The

are

The

3.1

up the proportion of bond in¬
vestments in portfolios.

the

York__

ing

expected to be reversed
basic economic policies

under

which

1959

Chicago
Philadelphia
Boston-

not

are

000 Omitted

Aug. 13
New

com¬

of the

some

centers follows:

money

the

present

level

of the stock market and the ques¬
tions
which
remain
to
be
an¬
swered— economic

domestic

and

portfolio

today,

and

political;

world-wide

—

the

I have advo¬
months, should be
(a) balanced with a proportion in
good fixed income securities for
as

cated for many

income and

future

buying

re¬

serve,
and
(b)
common
stocks
commitments should be guided by

investment merit and "value" rel¬

the past decade. around
50%,
but
the
industry
ative to individual issues—with a
costs,
on
the
whole, looks for 55% to 60% in the third
the 70%.
usually rise faster than selling quarter and 65%;'to 70% in the view toward adequate income re¬
market factors this way:
turn and/or a favorable earnings
From a high of 685
early in prices can be advanced—particu¬ final quarter. The automobile in¬
Steel inventories are still Jarge. January
the market had again larly with the competitive factors dustry will be increasing its out¬ potential whic^h could bring with
While, this is surprising,;it is? true. come down to the 600 range-re¬ which stem from more than ample put schedules as the new models it
longer-term capital appreciation.
Many steel users will, continue to flecting
Also, there come into production. The basic '•Si .••**» *
(1)
the
disappointing productive capacity.
"v.''
'*•
A
reduce
inventories
for
some
earnings results so far this year is now the added factor of com¬ question—still too early to answer
—is how long the seasonal better¬
weeks.
which have been influenced
by petition from abroad.
pected to break soon.
The Iron Age summarizes

economy

over

margin requirements from 90% to Business

;

railroad

for

Demand

struction

steel

and

con¬

off.

increased
sure

competition and pres¬
profit margins; (2) the

Tinplate releases have fallen off

lag in new orders for durable
goods which have been running
under shipments, usually presag¬
cellations of orders.
Steel
consumption has fallen ing lower activity later on; (3)
off—more than had been expected high price-earnings ratios appear
there

and

seasonal

from

This

tors.

(in

been

have

that inventories

auto¬

have

days)

matically lengthened
tion

can¬

economic fac¬

and

means

terms

some

as consump¬

dropped.

Warehouses

steel and

loaded

are

with

not ordering in any

are

strength. There is little reason to
a change soon.
Automotive ordering of steel is

expect
also

disappointing

—

have

also

Automakers

to now.
in¬

ventory than even they expected
and
the first cars off the
1961
lines

less

warranted

profits

trend

—

which

take

corporate

5.9%

come

profits in 1959
total national in¬

compared

during
6.4%.

with

the previous
The

employees
creased
come

last

total

ten

the othpr hand
69.5% of national

compared with

these

industries

may

endure.

;

Other

of
of

considerations

the

over

the

Federal

prior easing

rather
than
robustly ten-year average of 67.4%.
(4) the at least tempo¬
During the past two years the
total compensation of employees
rary relaxation of "inflation"; (5)
the underlying economic influence was about
70% of national in¬

Resbrve

Board

sentiment

least for

Market

fices

peak of 9.2% of national income

engage

Officers

Before Labor Day

Not Expected

steel

Many

completed
justments

consumers

their
but

inventory

James

Norman

are

following

policy in placing
orders, Steel. the metalworking
weekly, said on Aug. 15.

"wait

and

see"

mills

Steel

uncertain

are

when and how much of an
to

expect.
fluctuating
one

just
upturn

Incoming orders are
inconclusively — up

week and down the next.

still

Steelmakers

believe

that

September bookings will be 10%
better
than
August's, but they

Treasurer;

Policy

Caleb

and

Continued

page

answers

heavy inventory of

torily

questions such

far

cleaned

of the

will

from

Assistant

Treasurer.

Last

(a)

some.

can

the

eral

Analysis of

URIS

BUILDINGS CORPORATION

year;

easier

A Financial

operating

plus of capacity
whether
a
rate
of

70%

around

later

low

50%

and

range

ad¬

models; (b) how
operations rebound

present

in the

rate

before the

new

steel

the

Reserve

stimulate

sustained

money

Board effectively
activity; (id)

economic

will

the reduction in margin re¬
quirements bring about anything
other than a temporary flurry in
stock prices; (e) where will our
problems in foreign affairs lead,
and (f) how far can the Federal
Reserve

Board

and

money

with

lower

easier

interest

rates

without

BOUGHT

—

SOLD

Our

comprehensive field report

this out¬

standing real estate special situation' dis¬
cusses

the

company

major building enterprises of this

and its excellent growth prospects.
rff

endangering
our
gold
(Through withdrawals
of
foreign funds motivated by
higher interest rates abroad.)
We

are

promises to be
tial

& CO.

1051

26,

WOodward 2-3855
Branch Office

—-

taxes.

Building
MICH.

pears

campaign.

The

activity.
prefer

basic

two

revolve

central

our report

Greene

is available to

of the

AMERICAN

Company

STOCK

EXCHANGE

(ASSOCIATE)

EXCHANGE.

INC.

INVESTMENT ADVISORY SERVICE

gov¬
72 WALL STREET

stimulating economic
stimulate

YORK

COMMODITY

and
ap¬

and

MEMBERS
NEW

major

question

role

dif¬

chiefly

programs

Republicans
to

David J.

economic

to be the

DE 75

what

the

parties

The

eve

hitter Presiden¬

spending

ernment

Bay City, Mich.

the

philosophies ' of 1 the
around

Exchange

Penobscot

DETROIT

election

ferences

political

Members
Midwest Stock Exchange
Detroit' Stock

A copy

Banks, Brokers, Dealers and Institutional Investors

position?

L. A. DARLING

Lewis,
Torrey,

Loring,

Chester

■

Jr.,

Hamilton,
Mr.

Lewis

autumn, and in subsequent and Mr. Hamilton were formerly
our
foreign balance of payments in 1950 compared with last year's periods when stock prices were
officers
of
Crosby
Corporation.
problem.
■■
portion of 5.9%.
relatively high, and high grade
Mr.
Torrey
was
an
officer of
The underlying trends toward bond issues were yielding
over
A Number of Imponderables
a
larger share of the country's 5%, my advices ran to lightening North American Planning Corpo¬
In
attempting to look ahead, income for labor and a static, or common stock holdings and build¬ ration of New York.
there are admittedly no clear-cut

vent

have
ad¬

Street, to

securities^ business.

1,000,000 automobiles be satisfac¬
Major Changes in Steel Production

t::

Canton Cor¬

—

Devonshire
a

are

President;

Clerk;

our

cations which continue inherent in

temporary period.

heavy domestic debt struc¬ come, up from 63% in 1950. Con¬
ture, and (6) the disturbing impli¬ versely net corporate profits hit

poration has been formed with of¬

credit,

investor

•

BOSTON, Mass.

which along with
the seasonal production
pickups
could perhaps favorably influence

■

Opens in Boston

coming months are (1) the pros¬
pect of some increase in defense

in¬

Canton Corp.

in¬ spending: (2) the changed policy

upward;

ment

average
years

compensation

downward

will the

compacts

are

steel.

Net
were

•

apparently
economic

NEW YORK 5, N. Y.

and Financial

The Commercial

(654)

Chronicle

Thursday, August 18, 1960

Combined Mileage

Rail Mergers Gathering
Greater Momentum Pace
A clearer track ahead for railroad mergers

by rail association's

seen

research department in their report

listing nine proposed groupings
Despite the renewed faster pace of

involving 25 Class I railroads.
the last two years

miles); Chicago, Burlington & Quincy (8,670 miles);
Spokane, Portland & Seattle (936 miles)____—----Chesapeake & Ohio (5,122 miles); Baltimore & Ohio
(5,911 miles).
—
(Including the New York Central—10,368 miles)
Chicago, Rock Island & Pacific (7,524 miles); Chicago, •

These obstacles are discussed as is the

Seaboard

effect operating

mergers

economies through the elimination
of duplicate facilities and services.
These moves could ultimately re¬

shape the structure of the railroad
industry.
The following
background in¬
formation. compiled by the Asso¬
ciation
of
American
Railroads,

provides

to date accounting

an up

of developments.
Merger

Pace

Gathers

Momentum

ground. A look at recent develop¬
ever.

last

this

that

renewed

two

area

mergers

During 1959

within

the

The

Charleston

with

the

Atlantic

Merger

Carolina

Western

and

Line.

Coast

proposals

continued to
plans
being studied or waiting stock¬
holder and ICC approval are nine
groupings involving a total of 25

combined initial system ranging

4,730

largest

one

other

miles.

(The

railroad, in

mile¬

24,728

present

is the Santa Fe Lines which

operates

over

12,970

miles

previously approved consolidation railroad.)

—

4,913

(4,186 miles);
Duluth, South Shore & Atlantic (544 miles)——

4,730

Chicago & St. Louis (2,170 miles)
Line (including Wisconsin Central)

Birth

While

not

ove"

the

WALL

STREET

taken at the request of the then

long-haul
and regional
service.
Thus, major lines of the present

President-elect Franklin D. Kooseveil. Named after-a Boston finan-

result

the

are

innumerable

combinations of smaller roads. For

construction

new

consolidation,

consolidations

425

—

;

legislation

decisions

court

and

in"

the

prevented

threatened to reduce

inter-railroad

competition, e v e n
though industry operations had
been closely regulated in the publie interest since enactment of the

Industrial

its

approval

shall

Merger

Commerce Act

World

merce

War

Commission

prepare

railroads
of

into

was

overall

consolidation

coupled

all

the

directed

plan

Vilas &. Hickey
MEMBERS
American

Stock

Exchange

for

later,

the

agency

a:ked

three
b

o r

of Six "

representatives

authorized

duly

three

and the carners involved. An lmpact " cushioning formula may
therefore be either arranged by

agreement between the railroads

deteritfrt^d

an^ their^nmns or

by the Commission.

(

A third obstacle arises from the
complex
corporate
and
debt
structure characteristic of most
of the railroads—particularly the
larger carriers. Difficult financial
merger plan. The Act returned to problems, such as the fixing of
tho
railroads
the
initiative
in acceptable ratios for an exchange
proposing consolidations, subject of stock and the negotiation of
-

to Commission approval.

•

From 1,940 to 1958, the total
numher of line-haul railroads de-

ohned from

such a way as to meet the objec-

to 410. At the fivos of all interested security
Class
I
railroad holders.
from
175,764
to
Fourth, railroads must take into

528

time,

same
mileage

changes in certain mortgages and
indentures, must be resolved in

rose

189,066, while that of Class II and

frequent opposition to
voiced by individuals,

account

mergers

_
.

droDDed

from

u 7qo

ciroppea irom ii,/yu xo

groupS or communities

8>990> reflecting the absorption of fear

which may

be relieved by Congress of the task
of

carrying out such a plan, stating that it would be impracticable.
But

managements

are

Other

plans were subsequently
by
various
interested

advanced-

groups.
The chief executives
the
principal
Eastern
roads

SECURITIES

Telephone:

Teletype:

HAnover 2-7900

NY 1-911

proposal

effect of the

the

upon

trans-

adequate

Specialists in Listed Securities

IBjj'ilil'Hlili lI'IH

You
,n

Brokers' Brokers
.

cialist and Odd-Lot Dealer in

specialising
•.

XA,

over

nationally

|cnown securities. We also

Continental Motors

for member firms, with four partners active'/
trading daily on the Exchange.

General Electric

serve as
#

floor brokers

General Motors

General Telephone
|||inojs Central

by the disastrous impact
depression.
National

Bendix Aviation

Marshall Field

Transportation
Committee,
headed
by
former
President Coolie;ge, in 1933 recommended compulsoiy consolidation
cf railroads under private ownership through nation-wide control
of regional operating companies
<

the markets of listed securities. We are regis*

-leT& Spetered by the Midwest Stock Exchange as

EbaystSrsys?e1nfrTrhirSiflf

The

call

can

...

proposed to modify the ICC

the

thwarted

YORK 4, N.

(1)

■

1931

lied

confronted with

IMiliMi

five

RAILROAD

satis-

a The Commission must be

pl'an^wS Anoconda c°PPer

never put into effect, for consolidating the railroads into 21 independent systems.

MUNICIPAL

preceding

are

faster pace today, merger-minded

c°niress, ,faUed,*°„acl °" this American Tel-

milsfon published"

Brokers in

mergers

adverse

was

BROADWAY, NEW

committee

systems.

years

PUBLIC UTILITY

A-Linted

inroad executives and
Snreintat^es of rafl 1

terests of such employees which
can be entered into between their

nation's

pun-

INDUSTRIAL

ing to thce P™tecti™ of theJnr

ncrea

1 c ea

™t('h

equenc> oi aiapaicn.

limited

posed a tentative plan which
derwent
lengthy hearings. Four

Stock

1887.-

cotdingly110^?!!^511 In^tSSt?^ C6m^

Financial Studies

Exchange

iaSlities

effects. Communiwith
federal take-over
of
rail- smaller roads by enlarging Class I ties may fear loss of offices, shops,
roads,
brought
a
reversal
of carriers.
payrolls or taxes, etc.
policy. Under the Transportation '■>
Finally,
the
merger
proposal
Act of 1920, Congress sought ..to
Problems Faced by Mergers
must
undergo lengthy hearings
establish an affirmative policy on
Despite the fact that rail; and meet certain ICC standards.

and

condition

about

were

Plans,

early 1900's impeded

Municipal Securities

scale consolidation, r. ri. Brince,

encouragement of voluntary conrailroadsm the5 solidation subject to-federal apUnited States. By the turn of the
proval.
Subsequently,
upon
ehcentury, 1,224 railroads were. actmerit
of" the Transportation
operating. Today, there are some Act of 1940, the ICC was finally
410 line-haul roads operating 218,- relieved
of ' its 20-year-old obli000 miles of right of way.
gation
to
formulate
a
national

However,

Midwest

be diSpiaced through consoij^aticn. Section 5 (2) (f) re-

may

different

Interstate

Stock

gecon(1,
the
Interstate
ComAct provides for the pro¬
tection of worker positions which

merce

ThS^

there

time

one

Brokers

the

from

occurred

Voluntary IMergers and

Stocks and Bonds

—

through 1888.

mergers that

York

advantageous

single system,

and arcient advocate of large- qUjres that the Commission

eier

voluntarytimeand

place

took

Exchange

Dealers

Utility

and

period following the Civil War
and prior to the turn of the century. Over 70,000 miles of railroad
were built from 1880 to 1890, and

Restrictive

New

con-

the

example,

various

Railroad

ad- operation under

vanced in 1933 known as the
Prince Plan, which was under

offer

Compulsory

Members New York Stock

—

to permit the most

control over mergers.
Another merger plan was

direct

combined

evaluate the feasibility of

solidation and serve as a basis for
review of the proposal by the ICC.

anc* passed the Emergency Rail- Another initial expense includes
road Transportation Act of 1933 the realignment and integration
which tightened the Commission's 0f terminals of the separate lines

130 yeans ago and have conthe present day as local

NEW YORK 5, N. Y.

Railroad

after

companies

first

tinued to
lines

1884

DICK & MERLE-SMITH

—

immediately

almost

formation

consolidations

phenomenon : They

new

at-

top holding company. Conhowever, rejected this plan

gress,

increased

rail

now

beean

Industry

attracting

tention
are

With

Regan

Mergers

Underwriters

employed to undertake extensive,
time-consuming studies to determme what savings can be
achieved—where and how much.
These studies enable management

5>248

(2,743 miles); New York,

Western Railway

Soo

6,000

times serve to bar consolidations.
First, the railroads must undertake a number of expenditures
before any of the prospective
benefits to the component lines
can be realized Expert engineering and accounting firms must be

9,720

dupUcltf

age,

and

Norfolk

formidable obstacles which some-

10,671

Rutland

•

Pennsylvania Rail-(this plan differed from previous reqUjre a fajr and equitable arroad system consists of over 600 pi oposals whmh emphasized end
rangement to protect the interests
Class
I
railroads.
A
listing of original companies.
t^end principles oi merger. The of ^ affecte<i employees. This
The greatest expansion of the
these, in the accompanying table,
services and
section goes on to permilf the ^b"
indicates that each would operate principal railroads, both through hv comhining adioin?ng lines to stitution of an agreement pertain-

number of merger

ICC,

—1_—

10,276

miles);

(936

Central

Maine

miles);

(391 miles)

also

ICC

the merger of the al¬
ready-owned Central Pacific into
the Southern Pacific Company for
single operation. And the Com¬
mission later approved the merger
of the Virginian Railway with the
Norfolk
and
Western,
and
the

favorably consid¬

railroad.

from

years.

proposals were
ered

reveals, how¬
have attained

momentum

(5 573 miles)——
—
-----New' York, New Haven & Hartford (1,762 miles);
Boston & Maine (1,557 miles); Bangor & Aroostook

approved

accelerate into 1960. Among

The merger movement in the
railroad industry has a long back¬
ments

miles

—

(602

~XT

21,401

(4,147 miles); Atlantic Coast Line

Line

Air

.I1C,

nnr

PAGE 10.

(863 miles)——

Eastern Illinois Railroad

the, Illinois Central - Alabama
reporter
Vicksburg
and
Vicksburg,
evident and
within the railroad industry. Shreveport and Pacific — became
Within recent months more than effective following
dismissal by
a
score
of major railroads have the Supreme Court of an object¬
taken up merger proposals as one ing stockholder's suit.
In the same year, the ICC com¬
way of coping with the two-way
hearings on a merger of
squeeze applied by rising internal pleted
costs
and
intensified
external significant proportions—the
Erie
competition.
Railroads
with and the Delaware, Lackawanna &
shrinking profit margins look to¬ Western, involving over 3,000
ward

API EARS ON

(10,599 miles)
Chicago & North Western Railway
(9.280 miles);
Minneapolis & St. Louis Railway (1,391 miles)
Missouri Pacific Railroad
(9,413 miles); Chicago &

encouraging stand taken by the ICC toward merger developments.
An urge to merge, as one
described the process, is

MARKET COLUMN

24,728

Milwaukee, St. Paul & Pacific

there still remains, nevertheless, tough obstacles

facing merger-minded rails.

TAX-EXEMPT BOND

(6,834

(8,288 miles); Northern Pacific

Northern

Great

"-v

Road

Proposed IVIcrgcrs

■

Pennsylvania R.R.
US

Steel

Members
M

New York Stock Exchange
Lyman Bacr
..

Midwest Stock Exchange

Alfred E. Turner

Scott Davis

180 West Adams

Timothy M.

O'Connor

General Partners
'

Financial 6-4790

Chicago

Volume

192

Number

5978

The Commercial and Financial Chronicle

(655)

■

portation

service

VU'V.

the

public;

S3S&
to

include

other

railroads

the

territory

involved; (3) the total
resulting from the
proposed transaction, and (4) the
interests of affected employees.
fixed

"TV

cnarges

cause

obtained

could
official

concern

each

other

with

but

other

short-hauled

forms

account

with

the

possible lessening of inter-railroad
competition.
Lately, however,
there has been growing realization that the major competition
of the railroads today is not with

notes about

some

r;-

V " "

certain

?•' 2959^' date<?

•'

which

and

part:

516 onfu ^

-n

early 20th Centuries has

disappeared completely with
the
emergence
of ..strong
and
growing competitors.
now

The

cleared

ever

expression of
to

making

railroads'

the

urge

and>

mer

stay

may

costs*
N

;

been

;

named

e r

to benefit

Chicago

Pacific,

Northern

has
new

donment

office

New

York,

airlines

invest¬

the

Street,

seems

announced

Mackay, pres¬
■

-Formerly
vice-president

secretary'

and
of

oreat

has

efficiency

effected

im-

al-

larger,

controlled

ai-

and

mechanized

reduction

cost

equities

mainte-

track

rights

Murphy & Co.
of

Mr.

Murphy is

C. O'B.

veteran

Murphy III

and

than 20 years in the securi¬

ties business./

Reading

was

found-

25 years

over

ago

1,000

railroad

late

the

firm.

program

at 524
ana
and

E.
l

Opening

branch

which

John
nrpe.ni

the

part

New

the

Mackay,
H

present head of the
York

losses,

that

and

anorner
another

omce
office

in that

trated

many

are

842

have be-

efficient, have

earnings.

;

recommendation,
listing
of
rail

310,000
cents.

8,-

of real estate. Penn¬

acres

sylvania

some

sells

and

25
It has major real estate in
pays

Concluding, railways will prob¬
ably never regain their glamour
of
the
early 1900's, but many

joined

the

paying

transistors

tube

vacuum

have

"Over and beyond the

now

far

better

and

pay

The

•'

■

-1

Manhattan East'n;
Formed in N. Y. C.
Manhattan

City,

Eastern
formed

Corporation

with

offices

Street, New York
engage
in a securities

business.

Officers

Bohlinger,

Alfred

Arthur

are

President;

Borinstein, Vice - President and
Manager; and David C.

General

Anchin, Treasurer. Mr. Borinstein
formerly syndicate manager

was

for
he

Prior thereto

Dreyfus & Co.
was

Borinstein

partner
&

Sprayregen,

Co.

Ss..

Ill
z-'i

young

PRIMARY MARKETS

and

INSTITUTIONAL SECURITIES
U.S. Governments

Coast

Thinking, Too

•

r®a"

Industrials

terminal

Railroads

in New York Har-

^he railroads have been relying
mai+ y,on such a negative thing
as
track reduction and abandon-

Canadian Pacific recently merged
be

xsiancj

have talked

VHUA t i

■

even

railroad

merger.

c„hdHiariP<;

outdone

The

Not

Equipment Trusts

the Russians
merger

merging

Bankers

Acceptances

Finance

plan!

business

Paper

not

The railroad unions

easy.

Public Utilities

Milwaukee and the Rock

<7,1

; ;

P t ?

»y running one ferry

instead of two

should not be inferred that "bor

Agency Issues

Municipals

.*•/*

hlondin*?

wfre

Federal

Line-Seaboard

equippe(j when the New York Central got
dividends.
A
ac • D.L.&W. and Erie
' should save a million a year just

always

usually take a dim view of them
potential reducers of the labor

Adams & Peek

force.

And of

labor-

has

course

been

the

never

price of
ending

Canadian Issues

problem for railway management.

Tor\ Stoc\ Exchange
Stoc\ Exchange

Feather

INDUSTRIAL & RAILROAD SECURITIES

(especially

covered

only 150 miles a
archaic and expensive.
you
ride
the
north
from
Miami to New York (about 1500
miles) four separate train crews
day? are
For

examp7e,
if
"Florida
Special"

are

Preferred Stocks

diesel

engine cab)
extensive,
and
work
geared to the time when
a

been

trains

Brokers and Dealers in

bedding,

"fireman" in
has

ru^s

required for the

run.

Salomon Bros. & Hutzler
Members New York Stock

60 WALL

Exchange

STREET, NEW YORK 5

Conclusions
120

BROADWAY
-

•

NEW YORK 5, N. Y.

Telephone REctor 2-4949
Teletype NY 1-724

Having touched briefly on some
the difficulties, as well as the

advances, in the railroad picture
today a few general conclusions
possible. (1) There's a great

are

Private

wire

42nd

m
.

The Chesapeake^md
the Baltimore md Ohio

Ohio and

This

and American

the

buggy whip museum!

fVv

have

Members 7<[ew

.....

ment for the solution of their prob-

uancasLancas-

city.

en¬

has

lne urge to Merge

concen-

the business that counts,

Positive

firm

Central

and
(21) is highly
to reflect any gain in
stock

yeargetting w.a? a natural.
It should create
nothing uftlmate annual savings of some

roads

to make money

headquarters

Washington Street, Reading,

ter Avenue

come more
gnd

York

estate holdings

real

common

ef-

over-all

;?■

gloom for

shows

expansion

investment

maintains

business.

traffic
-

foth„r
+h_
father of the

has mineral rights to

vanish'ficiency which
may
ultimately
•
'• ' produce savings of $12 million a

miles may

'' "vV

Now all of this is not

but

least word of

Pacific at 42 pays $2.20.
That's a
nice yield and the company owns

of way.

the

Mackay & Company

share,

good

shares that you might want to look
into
a
little
further.
Northern

this year.

very

World

York,

its

Pearson,
New

follows

hopelessly unprofitable spective—been as rampdnt.
The
Since the end of Norfolk & Western and the VirWar II almost 10,000 miles "ginian, combined, are already
rail lines have been abandoned, demonstrating
a remarkable ef-

ment

electronic

some

further contributors to

are

the Class I railroad progressive managements you now
now carries 50%
of the find in the executive offices of
freight tonnage. One third of the many roads, there's another major
nation's mileage carries only about trend working for increased prof-.-2V4% of the freight. So not only itability in the railroad business
in passenger trade, but in freight, —mergers.
Not since the 1920's
there is urgent need for abandon-, have mergers — actual and pro-

ident.

and

dreary

percent
mileage

William

ftnpra«nn

been

nance

be-

and undesirable,
have certain freight runs. Ten

come

been

has

y'ti

ficiency.
has

get

can

there

counting and data processing maElectronic signal controls

the only way out.

you

dorsement

chines.

passenger
cars,
and
have
delivered
a
lethal

business

strument

fabulous

leveraged

today you can pay
30 times earnings for a chemical,
and 50 times for a camera, an in¬

most reliable dividend

New

East

such • things as
selling machines,
roller bearing cars, and specialized types of freight cars.
Railroads .: now have electronic ac-

retained y.popu-

passenger

activity.

whereas

has been
payer.

122

automatic ticket

buses,

Mackay & Co.,
Reading, -Pa.,
it

The

firm

ment

Broad

dustrial

Pacific

been

& rected;

blow.

re¬

Western

paying $1 could improve, and may
be in a merger someday.
Squthern
Pacific at 20 V2 paying $1.12

has

electronically

larity.
But for most,/, passenger
traffic, is a heavy loss and aban-

branch

tax

Union

common.

when

better- laid out classification years,

and

have

local

subsidies, (6)
a
number
of
roads
operate
in
growing
territories
enjoying
a
rapid rise in population and in in¬

income."

Western

in business and

provement

the through
trains of Southern Pacific, Union
Pacific,
Milwaukee' and, Great

III
of the

manager

t h

o r

from

passenger

of Pennsy

justify present

dividends

ready

achieved
and

than

should be

; ;T

traffic, notably the

Northwestern;

Murphy

lief

water.

away

A few have been able

O'Brien

passengers

Pacific at 27 paying $1.20 pays all
its interest charges by "off track

Norfolk

completely integrated transportatipn services by Rail-Truck and ,> Without the

the

result,

price

—

rail
satisfactory
yield basis selling at from 7 to
10
times
earnings.
If
railroad
shares today are not highly prized
for glamour or growth, they still
piggy-back trucks trailer haulage represent some quite solid values
has been quite successful, and the in assets and earning power and,
potentials
of
combination
rail- for those interested in income,
truck service has shown possibili- offer more rewarding yields than
ties and led to concepts, not of are found in any other major in¬
traditional
railroading,
but of vestment category.

emergency
bus lbies entered the scene. Some
as

from passenger

Charles

many

real

(4)

been

only has a lot of money
been spent but a lot of initiative
and imagination has been used in
search for new traffic, and in improving operating efficiency,

26"day trainmen's strike this sum-

merge.

C. O'B. Murphy
With Mackay

few railway equities

N0t

in, commuter
money

any

would

roads have other
estate, investments,
pipeline rights of way which sup¬
plement earning power, and may
increase greatly in value over the
years,
(5)
some
benefits
have

passenger traffic, has had a tough
time

interest

assets

ized and the steam locomotive has
become "the choo-choo named expire!"

in business and wean
permanently,
apears
more while the Long Island again seeks
for increased higher fares, to offset new labor

thus

.track

than

specialist

major

York, -Philadelphia, Chicago,
Trenton, etc. and its one-third

cost,

Want to buy a railroad station? lems.
There has been a lot of
Several dozens have been sold in ''positive thinking" and
action,
the past couple of • years and For example, over $15 billion has
dozens more may be offered, be--been spent on railway capital imcause, for many lines, passenger/, provement in the past 15 years,
traffic is either dismal or dead. Most roads are completely diesel-

New

freight with but slight increase in

railroad business,

(3)
con¬

dition and could carry 100% more

status en- trade. The Long Island suffered

i
5y

j'-

19th

stated

than 20. years ago,
physical plant is in excellent

transportation. In recent de- The West- Shore RR. no longer
cisions, the ICC has pointed to offers
to
travelers
the
scenic
the
dramatic
change which has beauty perceptible from the west
taken
place in the competitive bank of the Hudson, and only in
transportation picture since the the past month, Maine-Central has
192C's. This trend was emphasized discontinued all passenger traffic,
in the Commission's report on the
Many other roads would like to
merger of the Virginian Railway follow suit. Even the Long Island,

1959)

aspects

with the Norfolk & Western Rail-

efficient

•

By Dr. Ira U, Cobleigh, Enterprise Economist

be¬

over

Problems and Potentials
Of the Railroad Industry

Until: recently there was con¬
siderable question as to whether

approval

■

Philadelphia

deal

hidden

value

the

total

railway .plant which stands on the
books below $15 billion and would
.cost at least $45 billion to replace,
(2) management today is far more

Boston

Philadelphia

San Francisco

Dallas

Cleveland

Chicago

West Palm Beach

and Financial

The Commercial

(656)

Chronicle

Thursday, August 18, 1960

1421 Chestnut Street,
Filor, Bullard & Smyth, 26 Broad¬ delphia 2, Pennsylvania.
way, New York 4. N. Y.
International Resistance —

Bucyrus Erie

DEALER-BROKER

Blair

Broad

Airlines
child

INTERESTED PARTIES THE FOLLOWING

SEND

Co.,

York 5,

N. Y.

Bank Stocks

United States

—

Pine

the

with

Broadway, New

Loan

Charter

Stocks—Review

particular reference to First
Corp.,

Financial

Union

Finan¬
The Milwaukee Co.,

Report

—•

cial

Corp.

—

207 East

McKinnon, 2 Broad¬

—

Michigan St., Milwaukee

2, Wisconsin.

New York 4, N. Y.

Solid

State

Computers

Stocks—Compara¬

Electric Utility

—Report—Harris, Upham & Co.,
figures — Courts & Co., 11 120
Broadway, New York 5, N. Y.
Marietta Street, N. W., Atlanta 1,
Solid

available

Also

dum

memoran¬

Land

Louisiana

Sugar

ploration.

Growth

Stocks—Report

which

issues

seven

New

Japanese Market

York

Review

—

Securities

Co.

Armour

—

New

System, Nippon Columbia Co. Ltd.,
and Matsushita Electric Works
Opportunities Through Put & Call

Options—Booklet—R.

Daly

Company Limited, 44 King Street,
West, Toronto, Ont., Canada.
Japanese Stock Market

Broadway,
the

New

available

Also

new

ment

Aluminium

Survey

—

York
a

the

discussion

administrative

amend¬

investment

foreign

law of Japan and analyses of Sony,

Mitsui Bussan, Fuji Electric Man¬

ufacturing,

Tube,

Steel

Nippon

Isuzu Motor,

Limited

—

Analysis

—

Random House, Inc.

Toyo Rayon, Toyota

Motor, Mitsui Chemical Industry,
and Kirin Breweries.

Properties—Memo¬

Coast

Cigar Corp.—Data—

Consolidated

Development

Fifth

South

Morris—Analysis—Eisele &
Libaire, Stout & Co., 50
Koppers Company, Inc.—Analysis Broadway, New York 4, N. Y.
—Golkin,
Bomback
& Co.,
25 Pittsburgh Railways—Data—
Broad Street, New York 4, N. Y.
Boenning
&
Co., 1529 Walnut
Latrobe Steel Company — Analy¬ Street,; Philadelphia 2, Pa.
Also availale are data on Seligsis
Singer, Deane & Scribner,
Union Trust Building, Pittsburgh man & Latz.

Philip

Kentucky.

Illinois.

Consolidated

Company, 320 tries.
Street, Louisville 2,

Kentucky

The

120

Meyerhoff & Co.,

Salle Street, Chicago

South

Corp.

Analysis — Searight, Ahalt &
O'Connor, Inc., 115 Broadway,
New York 6, N. Y.

—

King,

Corporation—Report
3932 WilLos Angeles 5, 19, Pa.

Control Data

—

Investors,

—California

Boulevard,
available

Also

report

Lindberg Steel Treating Company,

Inc.—Analysis

Engineering & Research

Company

—

Currier
233 A

Analysis — Woolrych,
Carlsen, Incorporated,

Calif.

Street, San Diego 1,

—

Cruttenden,

Also
dum

available

Po-

Salle

Co., 209 South La
Street, Chicago 4, 111.
desta

Crescent

memoran¬

International Minerals &

Chemicals Corp.

Zellerbach

Crown

—

Government
for

Spartans Industries Inc.—Review
Kidder &.Co.., Inc., 1 Wall

—A. M.

Street, "New York 5, N. Y.
Also
available is a report

Brooks.

Bobbie

dustry.

Royal Industries.

Special report —
Development Bank,
Puerto Rico, San Juan, P. R.
R.

Ponce,

California.

Standard

Oil

(Ohio) —

Company

Report—Hardy & Co., 30 Broad
Street, New York 4, N. Y.
Also available are data on R. H.
Macy
and

& Co., Cunningham Drug,
Harshaw
Chemical and a

memorandum

"Hollywood

the Sixties."

Ltd.—Memorandum

Co.,

Steetley

120
Memorandum — Market
Basket—Analysis—Bate- —Model, Roland & Stone,
Broadway, New York 5, N. Y.
Ltd., 50 King St., West, Toronto, H. A. Riecke & Co., Inc., 1433 man, Eichler & Co., 453 South
Walnut Street, Philadelphia 2, Pa. Spring Street, Los Angeles 13, Cal, Supronics Corp.—Memorandum—
Ont., Canada.
American Gypsum—Memorandum Deltown Foods, Inc. — Analysis —
Bruno-Lenchner, Inc., B i g e 1 o w
Metropolitan Broadcasting Corpo¬
—Hill, Darlington & Co., 40 Wall A. G. Becker & Co., Incorporated, ration—Ar.aly sis—Carl M. Loeb, Square, Pittsburgh 19, Pa.
60 Broadway, New York 4, N. Y.
Street, New York 5, N. Y.
Rhoades &
Co., 42 Wall Street, Therm-O-Disk Inc. — Memoran¬
Also
available is a review of
Anchorage Gas & Oil—Repprt—
New York 5, N. Y.
dum—Loewi & Co., Incorporated,
Invesco
International
Inc.,
236 Maine Public Service Company.
Also available are reviews of 225 East Mason Street, Milwaukee
East
Fifth
Avenue.
Anchorage, Dominion Stores Limited — Ana¬ AMP, Inc., Alabama Gas, Califor¬
2, Wis.
Alaska.
lytical brochure—W. C. Pitfield & nia Packing, Fruehauf Trailer and
Union Oil Company of California
Co., Inc., 30 Broad Street, New National Steel.
Assembly Products Inc.—Analysis
Analysis — Laird, Bissell &
—Aetna Securities Corporation, York 4, N. Y.
Midland Ross Corp. — Discussion
Meeds, 120 Broadway, New York
111 Broadway, New York 6, N. Y. Duriron Company, Inc.—Analysis
in
current
issue
of
"Investor's
5, N. Y.
Bath Iron
Works
Review
du —Butcher & Sherrerd, 1500 Wal¬
Reader"
Merrill Lynch, Pierce,
Union Twist Drill Company—Re¬
Pont, Homsey & Co., 31 Milk St., nut Street, Philadelphia 2, Pa.
Fenner & Smith Incorporated, 70
Boston 9, Mass.
Federated
Corporation of Dela¬
port—Peter P. McDermott & Co.,
Pine Street, New York 5, N. Y.
Also available are reviews of ware—Analysis — Darius Incor¬
42 Broadway, New York 4, N. Y.
In the same issue are reviews
Garrett Corp., Metro G o 1 d w y n porated, 80 Pine St., New York 5,
of Baxter Laboratories, Republic United
Aircraft—Memorandum—
New York.
>
Mayer and Seeburg Corp.
Foil, Spartans, National Newark John H. Lewis & Co., 63 Wall
Bishop & Babcock Manufacturing Financial Federation, Inc.—Anal¬ & Essex Banking, Amphenol Borg
Street, New York 5, N. Y.
Co.—Report—J. N. Russell & Co., ysis — Stanley Heller & Co., 44 Electronics Corp., Kendall Com¬
Uris Building Corporation—Com¬
Wall Street, New York 5, N. Y.
Inc., Union Commerce Building,
pany,
Electric Storage Battery,
Cleveland 14, Ohio.
analysis — David J.
First Charter Financial Corp. — Eastman Kodak. Also available is prehensive
Boise Cascade Corporation—Anal¬ Report — Reynolds & Co., 120 a memorandum on J. J. Newberry. Greene and Company, 72 Wall St.,
McLeod, Young, Weir & Company

Securities Co., Ltd., 61

—Nomura

Chicago &
Northwestern, N e w
York Central, New York Chicago

Street, New York 5, N. Y.
available is an analysis of

Pacific

Garfinckel

Julius

Building, Cleve¬

International Rectifier Corp.

Inc

Minneapolis 2, Minn.

Corporation\
Louisiana Land & Exploration—
Analysis—Hooker & Fay Inc., 221
Abbott Laboratories—Analysis—
Analysis—Paine, Webber, Jackson
Montgomery Street, San Francisco
& Curtis, 25 Broad Street, New
Cohen, Simonson & Co., 25 Broad 4, California.
York 4, N. Y.
Street, New York 4, N. Y.
Also available is a bulletin on
Also available are analyses of
Acme
Steel—Report—Goodbody "Defense Industry Special Situa¬
Drive
In
Corporation,
& Co., 2 Broadway, New York 4, tions" with particular reference to General
New York.
Jerrold
Electronics,
Laboratory Ohio Oil Company, and data on
Also available is a report on for Electronics, Lytle Corp., Mis¬ Central & South West, AMP Inc.,
sile Systems, Radiation, Inc. and General Motors and the Steel In¬
Vanadium-Alloys Steel.

Yen"

"Securities

analysis of
Company and data on
an

& St. Louis and Norfolk Southern.

6, N. Y.

proposed

York.

Also

Aviation,

Hornblower & Weeks,

—

Co., Inc.— randum— Bear, Stearns & Co., 1
Wall Street, New York 5, N. Y.
Analysis — Auchincloss, Parker &
land 14, Ohio.
Redpath, 2 Broadway, New York Papercraft Corp.—Memorandum—
Colonial Corporation of America
4, New York.
Stearns
& Co., 72. Wall Street,
—Analysis—Hill Richards & Co.,
Also available is a memorandum
New York 5, N. Y.
621
South
Spring
Street,
Los on Paramount Pictures.
Also available are memoranda
Angeles 14, Calif.
Heublein, Inc. — Memorandum — on Mattell, Inc. and Eldon Indus¬

shire

Also available are discussions of

the

N. Y.

Also available is

New

Broadway,

Ill

Inc.,

—

outlook—Hemphill, Noyes & Co.,
15 Broad St., New York 5. N. Y.

York,

Market—Report—Lamborn

Company, Inc., 99 Wall Street,

New York

attractive—
Utilities—Review
H. Hentz &
Broadway, New
Co., 72 Wall Street, New York 5,

Selection—Discussion

Yamaichi

Madison Ave.,
N. Y.

Inc., 660

appear

Purcell & Co.; 50
York 4, N. Y.

Industry

Technology—Bulletin

New York 21,

Ex¬

State

—Globus

40 Wall

Shares.

dum—Merrill, Turben & Co., Inc.,

tive

Georgia.

Analysis

Joy

Broad Street,

Cliffs Iron—Memoran¬

Cleveland

Freehling,

Electronic

American

North

O'Sullivan Rubber Corp.—Report
Manufacturing Company — —Troster, Singer & Co., 74 Trinity
Analysis—Walston & Co., |nc-> 74 Place, New York 6, N. Y.
New York 4, N. Y.
Wall Street, New York 5, N. Y.
Pabst Brewing Company—Analy¬
Chemex Industries, Inc.—Analysis
Also available are bulletins on
—Berry, Douglas & Fitzhugh, Inc., Electronics Stocks, Oil Industry, sis—Dempsey-Tegeler & Co., 210
Stahlman
Building, Nashville 3, Depressed Stocks which could West Seventh Street, Los Angeles
Tennessee.
rally and interesting Low Priced 14, Calif. '

Union Commerce

Financial Corp., and Wesco

Bonds

Thomson

Street, New York 15. N. Y.

Savings

New York Han-

seatic Corp., 120
York 5, N. Y.

Manhattan Bank,

—The Chase

113th consecutive

banks and trust companies of

Convertible

1959—Review

Petroleum Industry

—

comparison of leading

quarterly

way,

Street,

Front
Review — L. F. Roths¬ Bureau, Inc., 46
120 Broadway, New New York 4, N, Y.

—

Sixth Street,

Aviation—Report
36 Wall Street,

5, N. Y.

New York

Corporation—Analysis
Dain & Co., Inc., 110 South

—J. M.

Co.,

..—Bache

Randolph—Memorandum—

Herzfeld & Stern, 30

LITERATURE:

North American

Phila¬

Jim Walter

memorandum

Kratter.

Canal

WILL BE PLEASED

UNDERSTOOD THAT THE FIRMS MENTIONED

IT IS

New York 5, N.

Street,

Also available is a

AND RECOMMENDATIONS

Co.,

—

MemoC o r p. — Analysis — randum—Richter & Co., 350 Madi¬
Co., Incorporated, 20 son Avenue, New York 17, N. Y.

Burroughs

INVESTMENT LITERATURE

Memorandum

-—

Amsco

Jur

—

New

York

City

Stocks

Bank

—

Mid-year earnings comparison of
leading

banks—Laird,

Bissell

Meeds, 120 Broadway, New York
5. N. Y.
Over-the-Counter Index

—

showing

up-to-date

compari¬

the listed

industrial

son

between

stocks

used

the

Folder

Dow-Jones

Averages and the 35 over-thecounter industrial stocks used in
National
Quotation Bureau
Averages, both as to yield and
market performance over a 20year period — National Quotation
the

—

ysis—Daly & Co., Inc., First Na¬
tional Bank Building, Boise, Idaho.

Carbon

—

Currently Active:

General

Trailer

Beryllium
King Corp.

Whitin Machine Works

115

Company,

Telephone

Stock

Primary Markets

Also

article

comes,"

Granite

same

"Tailored

and
in

names

the

Motor

Pont & Co.,

issue

Corporate

In¬

Ross

McWilliams

Inc. —Report

—

Industries,

Georgeson &

Industrial Relations)

6, N. Y.

Grumman

Troster, Singer & Co.
Members New York Security Dealers Association

Trinity Place, New York 6, N. Y.
Teletype NY 1-376; 377; 378

Aircraft

Also

Intertype—Data—Cooley &

available

data

Nu¬

Chicago Corp.

International
ical

are

—

and

large

Eastern

university.

research,, writing

(top

Nineteen

publications),

teaching. Listed Who's Who in America, Who's Who in

Commerce and

lenge,

and

—

Chem¬

Parrish

Industry, etc. Enjoys space-age mental

working

with

students.

Except

assignments, will consider university
only.

The

25 Park

Minerals

Memorandum

of post-doctoral

Engineering

—

Company, 100 Pearl Street, Hart¬
ford 4, Conn.
clear

Man, in forties; Ph.D.,
years

Analysis — Joseph
Walker & Sons, 30 Broad Street,
New York 4, N. Y.
Harris

(Economic Theory, Finance, Investments,

Nick¬

Commercial

Financial

Place, New York 7, N. Y.

Co.,

New York 5, N.

University Professor Available

Stock Market.

Inc.—Analysis—Blbritj
Ellis & Simmons, 111 West Mon¬
roe Street, Chicago 3, 111.

Will

Split—

Second

—

1 Wall

Street, New York 5, N. Y.

52 Wall Street,

Memorandum

—

Francis I. du

Reimer Williams

—

Co., 120 Broadway, New York
...

White

Steel—Analysis—Ira

City

Corporation

5, N. Y.

Exchange" — The Exchange, 11
Wall Street, New York 5, N. Y.—
20c per copy—$1.50 per year.

York

HAnover 2-2400

Company—Bul¬ Dry dock—Memorandum

Haupt & Co., Ill Broadway, New

Ltd.—Memorandum

Corp.,

—Watt

Corporation—Anal¬

Discussion in August issue of "The
-

Photocopy Mfg.

Thermo

Ross

Watt, 6 Jordan Street,
Ristine & Co., 15 Broad St., New Toronto 1, Ont., Canada.
York 5, N. Y.
Newport
News
Shipbuilding
&
—

Broadway, New York 6, N. Y.

Farrington Mfg. Co.

Brush

Moore

Memorandum

—

Fruehauf

Struthers Wells Corp.

Midland

Speer ysis—Grimm & Co., 2 Broadway,
New York 4, N. Y.
American

Company.

Flintkote

letin— Carreau

BBM

and

Company,

Optical
For Financial Institutions

Cash

National

York

New

Broadway, New York 5, N. Y.
Also
available are reports

college

Chronicle,

chal¬

consulting

for

affiliation

Box

M 81,

Volume 192

Number

5978

The Commercial and Financial Chronicle

(657)

Labor to

Revival of Optimism on
'

■>s<

Ot/^vIt

avi/-v

O LOCK JCiXCnanSe

By Paul Einzig
London

Stock

Exchange

desistence from

further

rise

noted,
to

measures

with

notes accentuation of the wage spiral, along
as

City's

restrict

credit.

expectation of
Correspondent

deliberately advocated policy "rearing its ugly head."

many more

Predicts

such

expansion
to

attitude.

themselves

obvious,

extent

resting on borrowed money.

LONDON, Eng. — The Stock Exchange staged a moderate recovery
during the second week of August.
The extent of buying of
equities was small — indeed it

bound

the

trade

under pressure

are

they

cessive

production faster than the free
countries because their governments stand no nonsense from
their
trade
unions.
Consumer
spending power is kept under

try

demands.

induce

the

trade

unions

Co., 1401 Wal¬

see

As it is, we live in a fool's
pursue their paradise in which the firmness of
is true, they sterling rests on borrowed money,

continue

present

difficulty posed to the anti-inflationists

long

unions

glaringly

restrain

But

nut

reason.

ex-

unofficial

Street,

members
the New

phia

Lazard Freres to
at

...

been

p™

lu, Sv

<;trppt

11 i-

Stock

a n

g es.

with

the

firm for many

?m/S 3

years

m''

the

trading dedepartment.

£ v'
ew YorkJStock

x c

Mr. Smith has

strikes^, often force their hands. xtlQIHIL JzSOUlt/OIl

1Jie admission of this fact does
n°i mean» however, that the presuncritical attitude of the P
Bntlsh public and the British

i j

"4- T>

York

Philadel¬

and

of sterling, which represents "a fool's paradise"

by the firmness
I

this

produce

excessive wage increases despite disinflationary meas¬

Dr. Einzig cites the

ures.

feet

with advocacy of inflation

by the

tionism,

revival of inflaTr\c<r\nU
4-^ "D^
will it stand firm? J 0b6pil (DHll Lil tO Jd6
out nardly anybody dares to say a nose in tne Know are anything
i
T*
j_
it in public that the attitude of hut happy about the firmness of 1\|
f)|] 1*0*01* Jl
organized labor is almost entirely sterling resulting from the influx
&
to blame for the inadequacy of of hot money. Perhaps if the un- PHILADELPHIA, Pa.—Joseph E.
our
progress.
The free countries -favorable change in the balance Smith on September 1st will be
are
admitted to
prevented from expanding to °f payments had been allowed to
the limit of technical capacity by produce its natural effect on ster- • I
partnership in
the exaggerated
inflationary ef- Hng it would have been easier to 5
Newburger &
All

.«•

l_j^tt/ot-\

fluenced

Blame

Joseph E. Smith
Press towards the trade unions is
s
t
He
has
been
3ustlfied. For if all the pressure
attained
a
substantial volume—
comes from then* extremists and
PP
•
* Boulton. has been nominated for the presidency of
but the sentiment was distinctly
n0*16 *J,°rr| the public .they are a partner in Goodbody & Co. and the National Security Traders Asoptimistic. The City is now in- of redundant workers in the So- II?
f/y inclined to yield more prior thereto was a partner in sociation

would

unusual

most

middle

the

in the

holiday

control in order to be able to de-

vote producing capacity to the
production of capital equipment,
Nor is there any featherbedding

season

clined to take the view that there

viet Union

will be,

countries.

after all, no need for further measures to restrict credit,
Indeed there is even some talk
of

in other Communist

The

released through automation can be
employed for increasing the out-

early reduction of the Bank

put

manpower

industries

other

instead

Jhan

w.° ^ 1 Pressure came Baker, Weeks & Co.
Ir^m both sides.
'
v.: Uttti
ttt
i i
,
By the look of things there will ** i
. Vp
n
W illLfi WPlfi LO
be many more excessive wage in- rierbeiT 1. Urown Opens
I
creases in spite of the disinfla- KINGS POINT, N. Y.—Herbert T. Anrmi" PQVf"nPT*Q
.

rnt!relyhon ThTfirU^ofsTr-' of being kept ,dle in the fac" faZKHfte
though it is quite obvi-

ling

even

ousl'y

due to the influx of shortattracted by the high
rates. Even if the Bank
had been raised solely for
funds

term

interest
rate
the

whether

the

And^rom'the'point*of ^ewVflts
a

toge" aS ®rown is inducting

a securities

Admit rarLIierS

m^ber turn will- be ini-

limit of

while

?'lg^s

Britajn ancj jn other free countries

dine

there

I1U

bor is saved by the labor~saving
equipment.

pecting a more

haviour.
Crucial

hope

for

ex-

Mutual Funds Investment
SYRACUSE

of the New York Stock Exchange,
on
September 1st will admit

B. Philip

Y.—Bernard

Baker, Cornelius
^
\
-r

The question is, will the gov- ""dec the firm name of Mutual firm's Philadelphia
ernment allow itself to be in- Funds Investment Service.
Center Plaza,

office, 2 Penn

instalment

ning to produce their effect. The
trouble
is
that their decline is
offset

offer to sell nor a solicitation of an offer to buy any of these Debentures.

The

increase in the de¬
food and other con¬

for

mand

This announcement is neither

offer is made only by the Prospectus.

goods. This fact seems to
futility of specific re¬

sumer

the

show

strictions

particular

one

$150,000,000

type

spending instead of curtailing
purchasing power in general.
Since consumers are discouraged
from
mortgaging their incomes
on
instalment purchases they are
of

Motors ••Acceptance
Corporation

General

position to spend correspond¬
ingly more on other consumer
goods. The result is a switching
of demand from consumer durable

goods

other

prices

one

better.
The Wage

worst

the

payable each March 1 and September 1

for

Price 99'/4% and Accrued Interest

Spiral

aspect of the situaaccentuation of the

Hardly a day passes
demand figurg prominently in the news, and
en though the claims are seldom
needed
in full, the extent of

age

Interest

The

Due September 1, 198$

September 1, 1960

doubtful

change

the

whether

goods

Dated

are

likely to affect the cost of living
index than the prices of consumer
durable

Twenty-Two Year 45/s% Debentures Due 1982

goods.

consumer

food

since

And

spiral.

ithout some wage

increases

(allowing for shorter

>urs) far exceeds that of
eases
in the output.
As

situation is

wage

the in-

Copies of the Prospectus may be obtained in any State from only such of
undersigned as may legally offer these Debentures in compliance
with the securities laws of such State.

the

far as

concerned
have
except

disinflationary measures

:en

utterly

irhaps
-

ineffective

negative sense, for
the wage in-

absence

their

have

might
nflationism

policy

/ocated
y

—

head. Journalists,

iticians

and

been

deliberately
rearing its

economists,

trade union offi-

becoming increasingly
:al
in their demand that the
/ernment
should remove the
frictions and, for the sake of
reasing the output, it should
dw inflation to proceed unham-ed.
The favorite argument is
ls

it,

the free countries
self-imposed handicap

unless
the

their

DILLON, READ & CO. INC.
BLYTH& CO., INC.

■

KUHN,LOEB&CO.

THE FIRST BOSTON CORPORATION

DREXEL & CO.

EASTMAN DILLON, UNION SECURITIES & CO.

are

nove

MORGAN STANLEY & CO.

even

are
best

disinflationary policies,
bound to come out secin their race with the

mmunist countries.
"Material
Vhat these

inflationists omit to

GOLDMAN, SACHS & CO.

HARRIMAN RIPLEY & CO.
Incorporated
'

LAZARD FRERES & CO.

KIDDER, PEABODY & CO.

MERRILL LYNCH, PIERCE, FENNER &
Incorporated

SMITH, BARNEY & CO.

SMITH

SALOMON BROS. & HUTZLER

STONE & WEBSTER SECURITIES CORPORATION

WHITE, WELD & CO.
August 17, 1960.

LEHMAN BROTHERS

Incorporated

Omission"

that the Communist
mtries are able to expand their
ntion

GLORE, FORGAN & CO.

reasonable be- Landers and Jerome Hyde are en- Dorsey, and Charles C. Lee, Jr.
gaged in a securities business from to partnership. Mr. Dorsey will
Question
offices in the University Building make his headquarters in the

true, the restrictions on
financing are begin¬

Bank

the high
failure.

effect
been

has

rate

possibility,

is now

domestic

proceed right to the

technical

serve

can

where

of attracting foreign
;
open
to question lts adoption
is gravely handigold and dollar re- capped by this attitude towards
high enough to allow the release of workers whose la-

purpose

balances

about

it is no longer unearned increase, and by the business from offices at 33 Split White, Weld & Co., 20 Broad
needed. In the USSR automation time the turn of the spiral is com- Rock Drive.
Street, New York City, members
tories

DEAN

& CO.

The Commercial and

(658)

bonds

nue

TAX-EXEMPT BOND MARKET

purchased

The

tax-exempt
bond
market
improved, as was the
entire
bond
market,
by
last
Thursday's action of the Federal
further

Reserve Board.

The Board author¬

ized

discount

that

the

rate

The

lowered from 3Vz% to 3% in four
Banks

Reserve

Bank

also

lowered

rate to 3%

the following day. The

;

other

;

expected to follow the

Reserve

seven

in the

Banks

are

same course

future and also reduce

near

their rate to 3%. It has been gen¬

erally

anticipated

laxations
will

that

these

re¬

result

reduction

by the large

cated

city

banks, but at this writing,
nothing has yet been done about
the lowering of this rate.*
*
Gains

Tax-Exempts

about

first

showed

evidence

the

kets have been thin for
and

quotes

small
the

improved

buying

market.

orders

After

Governments

weak

Thursday

which

maturities

The

start

down¬

saw

some

slight

easing

Good

coupon

report

managers

but

bid.

The

day

gotten

that

off

official

interest cost

4.015%;

was

amounts

the
fair

balance

bid

this

new

tidy saving to

that

bid

the

state.
On

Retail

This

issue

First

15,

issue of

$8,-

International

week's

calendar in

offered

have

been

list for

withdrawn

offerings

purposes

Pinch-hitting

All

the

from

of mark-up and
subsequent reoffering, the volume
*

iCO

and

carried

coupon.
numerous

for Don Mackey

the

mediately

bonds

sold

im¬

were

privately

in¬

stitutions with no public reoffer¬
ing. This money, together with
$7,850,000 secondary Pledge Reve-

MARKET ON REPRESENTATIVE SERLA.L ISSUES
'V

(State)

New

(State)

Pennsylvania (State).
Vermont (State)
New Housing Auth. (N.
Y., N. Y.)
Los Angeles, Calif
Baltimore, Md
Cincinnati, Ohio
New Orleans, La
Chicago, 111.
New York

Bid

Asked

1978-1980

3.55%

3.40%

3%%
3%

1980-1982

3.15%

3.00%

1978-1980

3.15%

3.00%

Jersey Highway Auth., Gtd.__

New York

Maturity

3%%

Connecticut (State)

1978-1979

3.00%

2.85%

3%%

1974-1975

3.00%

2.90%

3Ys%

1978-1979

3.05%

2.90%

3V2%

1977-1980

3.25%

3.15%

3%%
3%%
3%%

1978-1980

3.65%

3.50%

1980.

3.35%

3.20%

1980

3.25%

3.10%

3^4%

1979

3.50%

3.35%

3y4%

1977

3.60%

3.50%

City, N. Y

(State of)__

1980

b.ouyo

3.70%

August 17, 1960 Index = 3.20%

headliner,
new

issue

East

ESTABLISHED

1894fc

STATE AND MUNICIPAL BONDS

CORPORATE BONDS
LOCAL STOCKS

issue

1961-1985
1961-1985

8:00 p.m.
7:30 p.m.

1961-1980

10:30 a.m.

1961-1980

Noon

1962-1985

2.30

2,620,000; 1961-1980

il:00

a.m.

5,900,000

1961-1985

10:00

a.m.

13,662,000

—__

1962-1980

11:00

a.m.

general

Municipal Utility Dist.,
———30,000,000
and Livingston Counties

Salle

JAckson 1-0316

2,500,000
1,178.000
2,655,000

District, Mich.
South Burlington School Dist., Vt.
Weymouth, Mass

and
the

—

;

a.m.

1961-1980

11:00

1961-1980

Noon

1961-1989

levied

No. 4, N. Y.
Englewocd Cliffs School Dist., N. J.

Monroe County,

obligation

1961-1990

7,500,000
1,050,000

—

Gates-Ogden-Chili

the sale, use, con¬

1995)

bonds.

These

unlimited

are

obligations

weeks

the

Atlanta, Georgia
Eerea

(1961-

calendar

since

and the

press

flotations

now

last

volume
the

West

1,000,000

1961-1988

(1985-1995)

Sept. 8.

seventh

million

$500

issue

bond

carrying the unconditioned
antee

the

State

the

guar¬

New

York

the payment of principal
interest. The Public Housing

and

Authority

has

announced

that

Noon

a.m.

Noon

1962-1989
1961-1970

3:00 p.m.
8:00 p.m.

1962-1989

8:00 p.m.

1:00p.m.

1961-1977

2:00 p.m.

1961-1980

2:00 p.m.

1,200,000

1962-1971

8:00 p.m.

Sept. 1 (Thursday)
Corpus Christi Ind. S. D., Texas
Fort Myers, Florida
Rochester, New York
South

Bend

Redevelopment

1,000,000

1962-1981

4:00 p.m.

2,000,000
9,157,000

1961-1973

2:00 p.m.

1,100,000

1962-1971-

2:00 p.m.

1,000,000

1961-1990

11:30 a.m.

1961-1980

9:00 a.m.

1962-1980

11:00 a.m.
1:00p.m.

Dis¬

trict, Ind
Washington Suburban Sanitary
Dist., Maryland

Sept. 6 (Tuesday)
Santa Monica Unified S. D.,

Calif.

3,000,000

Sept. 7 (Wednesday)
Alameda—Contra
*

Costa

Transit

: District,

Calif.:
Elyria, Ohio_

16,500,000
1,840,000

authorization

1962-1981
1962-1976

Noon

1962-1974

1,630,000
4,625,000

new

final

-t

11:00

1960-1986

2,950,000

Allis, Wis

calendar

and

uj.nim

1961-1998

a.m.

Aug. 31 (Wednesday)

bonds for public
This will be the

2:30 p.m.

1,196,000
3,593,000

Bridgewater Township, N. J.—

approximately $425,000,000.
largest
addition
to
the
$50,000,000 New York
State Thruway Authority guaran¬
on

D., N. J.

Ariz.

schedule is

teed

a.m.

8:00 p.m.

2,400,000

___

totals

sale

Calif.__

Omaha, Neb.
Portage Township Sch. Dist., Mich
Tempe.

went

1,350,000
1,000,000

Hollywood, Fla.

increasing and growing literally
by leaps and bounds. There have
been
numerous' new
issue
an¬
nouncements

City School District, Ohio__

North Brunswick Twp., S.

11:30

1961-1980m10:00

1,200,000
12,725,000

—

Cleveland Heights, Ohio
El Camino Hospital Dist.,

California

issue

new

a.m.

;V'

Aldine Ind. School District, Texas

tax, general
district
for

the

8:00 p.m.

1961-1979

Aug. 30 (Tuesday)

sumption, handling or distribution
of cigarettes. The preceding day
Aug. 24 the East Bay, California
Municipal
Utility
District
will
receive bids for $30 million

8:30p.m.

Babylon Union Free School District

taxes

a.m

Aug. 25 (Thursday)

1965-1978

of the state and is secured by the ■V Sewer District, New York
7,600,000
revenues
derived
from
excise Washington (State of)___;—34,000,000

Commission,

Fla

3,800,000

New : York

thority,

bids will be received

Los

State

1962-1986'

Sept. 8 (Thursday)

Florida Development

for

Thruway

N. Y

—

Au¬
—

50,000,000

St.

on Sept. 14,
$48,900,000 Federally
subsidized local housing
authority

total of

bonds. Twelve authorities
volved in this sale.
recent

additions

are

Armeies,

California

sizable amount of

un¬

derwriting. and an air of caution
in new issue bidding would seem
called for. However, the under¬
writing fraternity many times only
looks

ahead

few

days

Red

Wing

Indep.

Sch.

and

un-,

Dist.,

School

least.

seem

large

negotiated

imminent.

2:00 p.m.

1,100,000

1961-1978

8:00 p.m.

1963-1981

2:00 p.m.

21,455,000

Mich.

1961-1975

——

is¬

District,

Minnesota—
San

Francisco, California

Sept. 13 (Tuesday)
Ohio (State of)

___

31,000,000

Sept. 14 (Wednesday)
Greenwood Metro. Sewer
District,
South

Local

Carolina

1,600,000

Housing Authorities, U. S.__

48,900,000

Sept. 20 (Tuesday)
Milwaukee, Wisconsin

10,750,000

competitive
bidding
will
probably continue for the present
at

10:30 a.m.

1963-1985

1,500,000

Pleasant

duly

sues

1961-1980

1,000,000

Sept. 12 (Monday)
Mount

include

Rochester,
New
York
general
obligation
bonds for Sept. 1, and
$10,000,000
Pennsylvania State Highway and
Bridge bonds to be offered Sept.
a

4,000,000

Anthony Indep. School District
No. 282, Minnesota—

in¬

$13
million
State
of
Vermont
various purpose (1961-1980) bonds
for Aug. 23; $9,157,500

This is

»ATLANTA 3, GEORGIA

1961-1995; 10:00

.1,000,000

Township H. S. Dist. No. 40, 111.
Mona Shores School

the competitive, cate-,

not

Bay

California

$34 million State of Wash¬
ington Public School (1961-1980)
bonds on Thursday, Aug. 25. This

Other

RHODES-HAVERTY BLDG.

Aug. 24 (Wednesday)

The

Bate

California

a.n».

New Jersey—

Oyster Bay, New York—
Dist., Calif.

Bridge Au¬ water purposes. East
Bay is the.
of Michigan Series "A" sole distributor of water in a 244
Much municipal bond business thority
Revenue bonds
was
done all of last week with Primary Pledge
square mile area on the east side
were
brought
to
market.
This of
over
45
San
major accounts cleaned
Francisco
Bay,
serving
was
purchased at negotia¬ more than one million
out, and these syndicates marked issue
people in
tion by an Eastman Dillon, Union
closed. On Thursday, Aug. 10, the
Alameda and Contra Costa Coun¬
Securities and Co. group and in¬
Blu t List reported
ties. Bonds of this district carry
a
state
and
cluded B. J.' Van Ingen & Co.,
municipal bond street float of ap¬
high ratings and are well regarded
Allen & Co., A. C. Allyn & Co.,
proximately $232 million of bonds.
general market obligations.
Stifel, Nicolaus & Co. and KenThe supply went as low as
$155
Calendar Expanding v
million on Monday, Aug. 15, and ower, MacArthur & Co. The bonds,
For
the
first
time
in
all
due
many
Sept. 1, 20C0. were reyesterday
morning's
total
was

Although

a.m.

1,500,000.. 1981-1985 411:00

Calif.

San Mateo Jr. College

gory, is

bonds

August

400,000

Business

$204 million.

1963-2000

-9:00

County Regional

School District,

Vermont

1 '00
p.m.

Noon

1,500,000
Cherry Hill School District, Mich.
1,200,000
Fresno City Unified S. D., Calif.• 4,000,000
Holyoke, Mass.———
1,275,000
Iberville Parish, Louisiana——
1,000,000

than half sold."

reported less

largest scheduled

two

at this writing. This is
offering which was originally
scheduled for June 28, but at that
time,
officials rejected
the best

Wednes¬

Governments.

last

the

active the early part of this week.

day

were

ma¬

yield from

available

immediately after the
change
and
gained
about
thr<m-eighths of a point on Friday.
They have remained firm and in¬
and

the

and
to

The

yield.

offering has

ward trend

afternoon

3.30%
scaled

3.50%.

4.00%

rate

Tuesday

was
were

turities

and

their

3.05%.

a.m.

Aug. 23 (Tuesday)

11:30 a.m.

1961-1980

1,600,000

S. Dist.,

Camden

Central

1981-1990
1962-1982

Aug.. 22 (Monday)

Fremont Union

Tuesday's finaT sale of impor¬
$2,850,000 Dear¬

bid

2.40%

had

reversed

1.50%

f—
;

11:00

College of Colorado,

Colo.■

born, Michigan general obligation
(1961-1990) bonds. This issue was

cost

Wednesday

last

Aug. 20 (Saturday)
Western State

tance consisted of

America N. T. & S. A. The interest

three-eighths of
a
point on Thursday, they were
again up about one-half point on

Friday.

——

3.05% the
reception
was

1961-1980

4,000,000
2,100,000
1,380,000

Dist., Maryland
City Sch. Dist., Ohio—

Yarmouth, Maine

Westlake

Tuesday,
Waltham,
Massachusetts
accepted bids on
$3,050,000 serial (1961-1980) gen¬
eral obligation bonds. The Halsey,
Stuart & Co., Smith, Barney &
Co. syndicate were high .bidders
and reoffered the bonds to yield
from

2,030,000

—

average of about

been

Michigan
Recent Financing
"
Corporation
group.
The
bonds
The largest and most interest-'
were
reoffered from a yield of
ing offering, this week Aug. .17' 1.75% to 3.70%. Initial investor
involved $15,000,000 State of Cali¬
reception has been good.
fornia harbor improvement serial
(1965-1990) bonds. The successful
Washington State Issue Main
Business Ahead ;M 'sir? group
was
headed by Bank of

into

came

closing

average

Ponce, Puerto Rico
Washington Suburban Sanitary

awarded

time

rapidly

predates
change
and,
figured cur¬

or more

3.82%.

mar¬

some

that

rise

it would be considerably
higher than the Aug. 11 figure of

turn¬

and

revenue

this
rate

investor

Also

market rise of
point. It should

Scaled

Co.

1.35%

rently,

strength

pike bond quotations. These

of
that

discount

were

municipal
bond1 market,
previously in good condition, immediately responded to the lower¬
ing of the
discount rate with
gains off from one-half to two
points. There were no new issues
up for sale the past Friday and
the

initial

average

noted

the

The

from

Thursday, August 18, 1960

following

$1,000,000

slow. About $3,800,000 remains in
account at this writing.
'/

Smith, Barney & Company
Turnpike bond yield index indi¬

Nuveen

yield

The

the prime rate of 5%

John

by the Federal Reserve

also

tabulations we list the bond issues of
for which specific sale dates have been set.
Information, where available, includes name of borrower,
amount of issue, maturity scale, and hour at which bids
will be opened.
Aug. 18 (Thursday)

St.

Ste.

Halsey, Stuart & Co. group, and
major members of the group
include,
Glore, Forgan & Co.,
general
Philadelphia National Bank, and

improvement
in
high
year
bonds of about
1:,/8S of a point. This is a very*
substantial
rise
and
brings our
index to the highest point for this
year. Last week the average yield
figured
3.315%.
This
week's
average 'is
3.20%.
•
"
grade

the

other

municipal

indicates

Sault

Financial

and

market

discount

its

and

state

index

bond

Kansas City and Cleve¬
The Minneapolis-Reserve

.mond,
land).

Commercial

Chronicle's

(New York, Rich-

between

the

Mary's River
Marie, Michi¬
gan and Sault St. Marie, Ontario.
An
offering
of
significance,
Of retail business done is remark¬ particularly to New Yorkers, $4,500,000
Niagara
County,
New
able, particularly for this time of
York bonds was made on Tuesday.
year, which is historically slow.
These
serial
(1961-1990):; bonds
Yield Index at Best Level for
carry the highest
quality rating
in the state and were bought by
The Year
crossing

Larger Issues Scheduled For Sale

province of Ontario, is to be used
to
construct a
vehicular
bridge

BY GEORGE L. HAMILTON*

was

the

Financial Chronicle

Sept. 23 (Friday)
Pennsylvania

State

Highway, &

Bridge Authority, Pa

10,000,000

—

Volume

192

Number

5978

The Commercial and Financial Chronicle

(659)

Business Will Need More

J
External Capital for the '60s
By Edmund duPont, Senior Partner, Francis I. duPont & Co.,

New

York

Wall Street partner writing in
firm's

,;r^0,"4'V :''AL

City

internal

funds

finance

business' needs in the Sixties
against 75% in the Fifties.

amounted

biggest

capital expenditures and

and

other

(hot

the

institutional

forget

investors

brokers

the

bring

burden, estimated
million,
will

this

will

throw

$150 million, and more, likely $175
and investors. He hopes government

and

income

even

will

develop

provide

surplus and that

the

needed

will

while

Generalizations

institutional

savings.

money

will

lenders
be

doing

what

market

above

and

new

debts

Past

Internal

ment

should

run

how

own

their

own

Sources

of Funds

billion

investors'

preference and the cost from
of money for hire—will determine
and

Dr.

Edward
Hunter

College
Studies, has

General
that

Davison, Director of

Mr.

Louis

$6.9

corporate
bonds
billion five years

bonds

r a

.u.,.,

* mhujiiiimw "m

investors

bly
T

nota¬

—

the

same

r e

—

came

from

tional liabilities estimated at 13%

time, there
were

38%

some

depreciation. And a very sizable
portion arose from liquid positions
that
permitted taking on addi¬

y's
"Magic Fives."
r e a s u r

—

total

capital needs.

el9.327

begin¬
ning Tuesday,
Sept. 27. The

common

tional

But,

even

Growth

in these tradi¬

in the

fields, their activity is likely
by con¬

than

to be somewhat restricted

assets

week

7:50

trast

with the Fifties. They now
pretty well "loaned up" with
loans representing some 55%
of

been

even

of mutual

rapid

in the last five years against
for pension funds. Net new

100%

money

Mr/
h.

during

Edmund

duPcnt

deprecia¬

theless, the number of individuals

holding equities continues to rise

(having doubled in seven years).
And rising values carried the total
equity holdings of individuals up
$33 billion0ift' 1959 td"<a record
$356.8 billion. It was a record year8
for mutual funds, too, with $1.5
billion of new money going into
their shares; in the space of five
years, these new purchases (net of
redemptions)
have
more
than
doubled.

should

be remembered, of
the biggest saver con¬
tributing to business expansion is
It

course, that

itself.

business
This

not

does

mean"

that

re¬

quirements of the coming 10 years
can
be met without very large
reliance

ply

means

come

how much must

from outside

mined in
business
own

outside funds. It sim¬

that

will be deter¬

the light of how much
"throw off" for its

can

use.

Business
sources

has,

basically,

obviously

retained

earnings

depreciation reserves.
less

three

of internal funds. Two are

and

The third,

obviously, is liquidity

the

—

ability to carry greater liabilities

$25

This announcement is neither

offering is made

buy

these

securities.

The

offer to sell

nor a

only

billion.

Growth

last

Better

kets.

year

still,

the

govern¬

Newbridge Road.

solicitation of offers

the

Prospectus.

This announcement appears as a matter

of record only, these securities having been placed

privately through the undersigned.

Aug. 11,1960
NEW

ISSUES
•

'■

102,500 Shares

•

.■

Puerto Rico

.V'

•

■

A-'."- '

:.*

;

Telephone Company

■CAMPBELL

MACHINE, INC.

•

due

(Par Value $1 Per Share)
•

per

••"/

Share $7.00

qualified to act

■

other dealers

...

■.

A-

•.

•

"-A

.••••

August 1, 1984

A"-."..

•

;

•

6%% Cumulative Preferred Stock Series A

Copies of the Prospectus may be obtained from the

the

■

40,000 Shares

undersigned, and other dealers, only in the states
in-which the undersigned and

$8,000,000

Twenty-four Year 6% Sinking Fund Debentures Series C

Common Stock

Price

(Par Value $100 Per Share)

are

dealers in securities and in which

Prospectus may be legally distributed.

Kuhn, Loeb & Co.

J. A. HOGLE & CO.

;

1942

White-

member

last

assets for the

—

Never¬

of ' 15

head has been

Whitehead

investment in mutual funds

—

stocks
1959.

for

p.m.

total

Since
Louis

6:10-

sessions.

that for the pension funds—

150%

are

has

one

evening

funds

will

course

meet

year amounted to $1V2 billion the
faculty of the New York In¬
banking system as a
whole—more in the major cities— against $1.1 billion in 1958 and a stitute of
Finance, successor to
from $8
little under $1 billion in 1957. On the
New York
Stock Exchange
billion in 1950 to about $21 billion against a bit over 30% ten years
top of this $3.6 billion of new Institute,
where
he
conducted
And
the
most
optimistic
in 1959
is attributable in no ago.
money
made
available
by
in¬ courses in Economics and Current
banker would hardly expect con¬
small part to liberalized treatment
vestors
predominantly : for re¬ Economic Developments Affect¬
tinuation of gains in loans at 10%
allowed
by
rules
promulgated
investment
in
common
stocks— ing
Investments.
He resides
a year
at
(compounded) that marked
under the revised revenue code of
assets in the three years benefited New
the Fifties. '
E
Vernon, N. J.
1954.
Most of these fruits
have
Life insurance companies, with by an additional $3.4 billion of
Formerly a member of the fa¬
now been enjoyed to their fullest.
market appreciation. At the end
their growth of 50% in the last
culty of Syracuse University, and
In other words (barring a further
of
1959,
mutual < funds'
assets a lecturer
decade and nearly $115 billion of
for the American In¬
major
overhauling g of
rules on
bulked
$15.7
billion
compared stitute of
Banking, Mr. Whitehead
depreciation), the rate of rise in assets, provide a vast pool of in¬ with $2J/2 billion in 1950.
has been engaged in investment
capital.
But
they are
these reserves will be slackening. vestment
Net additions of new money—
limited
in
their E purchases
counselling in New York since
of
They can supply a vast number of
quite, aside from appreciation- 1936.
He is a partner of Nye &
dollars under present rules but equities and, consequently, go'in
seem
likely to add 10% or more Whitehead, 44 Wall Street, New
hardly the 38% of capital needs dominantly for bonds and real
estate loans. Besides, their earlier annually, which would bring the York 5, N. Y., Investment Advis¬
realized in the past decade.
ers and members of the New York
growth rate of 6% to 6V2% annu¬ total to $45 billion by 1970.
Liquidity, too, is a waning re¬
In
ally has receded to about 514 %.
addition,
a
new
form
of and American Stock Exchanges. <
source.
Where most corporations
The slower growth rate of life regular saving which
Mr. Whitehead
is rapidly
is a
graduate
were
flush with cash and nearinsurance
(and
savings » banks, growing in importance has been of the Wharton School of Finance
cash assets iu 3-950, their workiiig
too) comes about partly through developed by the mutuals: At the & Commerce at the
University of
capital today is rolling over very
increasingly vigorous competition end of 1959, there wei^e 1,150,000 Pennsylvania. His 30 years of ex¬
nearly as fast as it comfortably for
savers' dollars on the part of accumulation plans in effect; 360,- perience
in research work and
can. This source will produce little
newer
institutions. The phenom¬ 000 new ones were started last management of investment
port¬
for expansion in the Sixties.
enal growth of the savings-and- year against 243,000 in 1958.
folios qualify him admirably to
Retained earnings are, of course, loans
rests
on
the
little
man's
conduct Hunter's popular course
Sources of Savings
subject to management decisions. dollars, and such money will, of E
in Investments.^
But it is unlikely that the divi¬
course, continue to flow into mort¬
Rising personal income in the
A bulletin and registration form
dend payout ratio will be reduced gages. The
corporation in need of years
ahead
should
assure
a
may be obtained by telephoning
short of some sort of emergency.
.equity capital will be much more steadily mounting level of saving BU 8-7210,
or
by
writing
to
If dividends are maintained rela¬ interested in the
progress of pen¬ for investment. But the Federal School of General Studies
(el9),
tive
to
profits,
it
seems
that sion funds and mutual funds.
Government also can make an im¬ Hunter
College, 695 Park Avenue,
generating 25% of capital needs
portant contribution to industry's New York
21, N. Y.
Fast Growing Pension Funds
from retained earnings is almost a
ability to raise the funds required
maximum target.
Among pension funds, the fast- to power
sound
and
necessary
Lahey & Appel Inc.
est growing are those set up by growth. If government lives within
Sees More Outside Funds Needed
corporations.
Eight
years
ago, its
income,
the
Treasury
will HICKSVILLE,
N.
Y.—Lahey &
Probably these internal sources their assets amounted to about cease to be a competitor for the Appel Inc. is engaging in a securi¬
will do well to produce even 65%
$714 billion; today they exceed funds available in the capital mar¬ ties business from offices at 146

The growth of annual
tion in recent years —

tively s mall
offerings of

sumers.

In-

vestments

the
in

course

(up

strongly to

High interest; rate s

will

conduct

bil¬

Whitehead

again

addition, they hold $12.8

$6.4

School,

announced

$773 million in
stock; investment in all
amount

■

have

stocks

At Hunter
the

(including

appreciation).

the

and

Conduct Course

ago)
To appraise the future of these
$657
million
of
preferred
three sources, it is, well to ex¬ the allocation of available supplies.
stocks (up from $454 million five
Banks
amine the past. From 1950 through
will, as
usual, prefer years ago).
Holdings of U. S.
1959, American business financed shcrt-term business loans, loans to Government
bonds
are
down
consumer finance
nearly one-quarter of its needs
companies, and slightly.
their
own
out
of
retained
direct loans
to
con¬
earnings.. Even

contracted).

substantial

hold¬

Corporations supporting pension
savers' funds
which buy the companies'

much money they will have to do
with are subject to a considerable

stock

common

ings have soared 250%

through the strength of .the cor¬
other
liquid form something over $33 poration's own liquid assets.
>
margin of error. And the normal lion.
billion (or a net amount of $14
forces of the marketplace—such as
over

their

Last year, individuals put aside in

billion

the

—

pension funds' assets have doubled

savers,
borrowers,,
and
sellers of equity securities
together
in the market).

huge

its income

personal

estimates

savers

much

to individual

live within

rising

duPont

billion
and

senting new purchases. Over the
space of just five years, corporate

and

investment ' bankers vwho

during the

Mr.

$3.2

record

comparing surplus,
funds
will- flow
back
This throws a huge
burden—• witn rises of $2.8 billion for 1958
directly to savers
(through re¬
certainly as much as $150 billion and $2.7 billion for 1957. >
demption of government securities
and more likely $175 billion—on
Even more conspicuous than the
and
through tax reduction) for
to individual savers and investors.
growth of total assets has been the investment in
industry.
[They will supply the "outside increased portion of pension funds'
funds" that will be channeled into
money going into common stock.
investment
through
the
banks, Last year, common stock holdings
insurance companies savings and rose
by nearly $1.7 billion, all but
loan
associations, mutual funds about $100 million of this repre¬

growing dependence on external financing sources than was the case
fifties.

Whitehead To

current issue of "Investornews," his

monthly publication, discusses oncoming decline in corporate

sources

August 16,1960

The
12

Automation's Impact

history? Will we
enough jobs for the growing

Nation's

Buckley,* Regional Director, Middle Atlantic
of Labor Statistics, U. S. Dept. of Labor

By Louis F.

Region,

Bureau

Potential economic

during the 1960's in

growth and manpower trends

particularly to the general subject of automation is Mr.
Buckley's subject. The Labor Department executive projects the labor
force's characteristics between now and 1970, and then proceeds to
relation

a >

occupational trends with emphasis placed on
the applicability of all this to 26 million new jobs that will be sought
by young workers—the largest influx of youngsters in our nation's
history. He stresses usefulness of vocational guidance information
and need for higher education and skill in tomorrow's job world.
analyze the changing

1970

and

their

know

analysis of this as¬
automation we are center¬

because in an

are

alive

age,

sex,

education

characteristics.
We
problems affecting youths,
workers, women and mi¬

other

and

foresee

attention
on
man older
machine. As Ewan
nority groups.
1
Clague, Commissioner of Labor
Our
population will increase
Statistics, concluded in a speech
over
the decade, but our
before a conference on automa¬ 15%
labor force will grow by 20%.
tion, "Let us never lose sight of
the personal element in the age of
Workers under 25 years of age
automation." Discussions thus far will increase by 46% and older
have
generally emphasized that workers by 20%.
'
the American industrial machine
Women workers
will increase
is
growing
increasingly more by 25%; men by only 15%.
our

rather than the

technology used in

developments, and the

industrial

efforts

combined
tional
in

raise our gross

tinued

$500

1950

have

force

labor

our

product from

enter the

young workers
force
during

know-how,

Managerial

volved.

na¬

$285 billion

billion

with con¬

sixties. And

tech¬

improvements

potential
is great enough to increase the
production of goods and services

niques,

manpower

our

about

billion

$750

1970.

26
million new
will enter the labor
the 1960's, almost
40% more than during the 50's.
They will be much more highly
educated and trained than their
parents or grandparents. Seventy
percent will have completed high
school; 35% will have had some
college; and 17% will have gradu¬
ated from college. And they will
Altogether,

in¬

running it is becoming more

need all the

education and train¬

ing they can obtain! In tomorrow's
automated world only the skilled
will-find

the

smooth.

path

will

uneducated

not

charted
of

not

the

the
60's.

important, we will

challenge

manpower

The
to

able

Our

calculations

are

design,

have 26 million jobs for new

workers in

young

guesswork. All those who will largest

This

announcement

is neither

influx

the 60's

This aver¬

year.

new

—

the

youngsters

mining.
An actual skilled worker occupational group.
employment will con¬ This group, which includes crafts¬
tinue to characterize agriculture. men, foreman and kindred work¬
workers in service industries will
ers, will increase about 25% dur¬
From a long range point of view
account for 57% of all workers.
ing the 1960's.
Building trades
The production industries include some of the most important effects
craftsmen, mechanics and repair¬
manufacturing, construction, agri¬ of automation are the changes in
the demand for various occupa¬ men, and skilled machine workers
culture and mining. The service
will
account
for
most
of
the
industries, where services rather tional skills. As part of its re¬
increase
in the
skilled worker
the Department of
than goods are produced, cover sponsibility,
group.
More mechanics and re¬
trade, government services, trans¬ Labor has given considerable
pairmen will be needed to main¬
portation and public utilities, fi¬ thought to these changes and to
repair and install the in¬
their implications for training and tain,
nance, insurance, real estate and
creasing
amount
of
and more
miscellaneous
services
such
as education.
complex equipment used in
automobile and other repair serv¬
Experts of the Bureau of Labor
industry
and
in
the home.
ices, laundries, cleaning establish¬ Statistics have tried to look ahead
Consumed spent' aP record $5
ments,
hotels, advertising and at the overall occupational struc¬ billion for TV and
appliance re¬
medicine. As our technology ad¬ ture of the future labor force. Of
pairs last year—more than double
vances,
proportionately fewer course, they have had to take into the total a decade earlier and
only
workers will be needed to produce account
the effect not only
of
$3 billion less than they spent on
the goods we need. More workers automation but also of farm mech¬
new equipment.
will be needed to provide the in¬ anization, atomic energy and elec¬
creasing services required as we tronics. But assuming a continua¬
Slower Growth Amongst
tries.

tinue

This

differential will con¬
so that, by 1970,

widen

In the

of vacation

enjoyed by Americans

have doubled to the current total

offer to sell nor a solicitation to buy any of these securities.
be only by the Offering Circular.

and

utilities

decline

tion of long term trends they have,
projected a picture of the national

job pattern to 1970.

slower rate than total employment

have

now

people

en¬

gaged in the professional, office
and
sales
occupations than we
have

all

manual

the

occupa¬

tions—skilled, semiskilled and
skilled.

This

un¬

continue

will

trend

Greatest Job

The

greatest

growth by far in

the occupational structure will be
in

the

professional

and technical

particu¬
larly
engineers,
scientists
and
many kinds of technicians such as
engineering aides and electronic
specialists. Additional large num¬
bers of teachers, nurses and ac¬
of occupations

groups

will

40%

over

—

The

needed.

second

almost

vances

tionists

with

have

30%.

rate

automation

and

other

contact with

The

be obtained from the undersigned in any State in which the
legally offer these shares in compliance with the securities laws of such State.
may

record¬

Bureau" 6f

workers

who

the public.
Labor
a

Statistics

study of 20

August 18,1960

of the type known as

tomation"

permit
in
and

number

without
in

as a

in¬
of

number

overall

workers

the

machine

Nevertheless,
the

semi-skilled

pected

industrial

many

products

semi-skilled

operators.
crease

"au¬
gains in

great

increases

can

ex¬

result of the industrial

growth of the country.
No

change

unskilled
in the

the

workers

number of
anticipated

ahead. The continu¬

years

trial

laborers

our

work

force.

Relative

requirements
for
la¬
borers are decreasing, primarily
because of the increasing use of
machines and

equipment as sub¬

stitutes

unskilled

for

J. I.MagarilCo.
37 Wall Street

New York, N. Y.

The

tional

worker

service
group,

which

workers

such

janitors,

manual

relative

processing

anticipated

data.

About

one-third of the employees in the
office units directly affected by

cooks,

policemen and
expected to increase

25%.

waiters,

firemen,

business

occupa¬

includes

barbers,

offices which had installed largescale
electronic
computers
for

service workers

the

is
protective

the

population

fast

among
as

increase

increases and cites become larger,

requiring expanded police
change were shifted to other
and fire departments. Other serv¬
positions. Only a negligible num¬
ice
occupations which will in¬
ber were laid off.
The advanced
planning that took place during crease rapidly include attendants

the

Underwriters

Broadway, New York, N. Y.

Recent

vances

group

growth
Despite the ad¬

recently undertook

force.

Offering Price $2.75 Per Share

Newark, New Jersey

oc¬

in
our
labor
technological ad¬

group

processing of records, controls labor in such types of work as
and billing, there will be an in¬ the
handling
and
moving
of
creasing demand for workers such heavy objects, loading, unloading
as
secretaries, typists and recep¬ and excavating.

COMMON STOCK

Raymond Boulevard

they

largest

ing : emphasis on mechanization
tremendous growth of points to a general relative de¬
cline in the proportion of indus¬
in the next decade.
technical

and

keeping which will have an im¬
pact on workers in such functions

1180

the

remain

cupational

and

although

1960's,

the

still

processes

Growth

Clerical and sales occupations will

Sandkuhl & Company, Inc.

will

commensurate

may

during

operatives

production

during the next decade.

will show

undersigned

which

group,

industrial pattern discussed above,

includes

the

result

professional

CO., INC.

semi-skilled

kindred
workers, is expected to grow at a

the

countants

108,000 Shares

Semi-Skilled
The

changing

past 10 years, the weeks

NEW ISSUE

Copies of the Offering Circular

systems.

the

The offering is to

BROOK LABS.,

r;l

ages

produce, install, service,
operate the machinery of the
be able to significantly increase future. They will not be able to raise our standard of living.
fabricate to tolerances of a thou¬
Increased productivity provides
the amount of goods and services
sandth of an inch. They will not more
fyee time. This in turn cre¬
to every person. Even though the
be able to contribute to a tech- ates jobs,in the service industries.
population will continue to grow
Nowadays, especially at this time
nology in which complexity and
of the
year,
more
people have
rapidly, the per capita share of
precision are commonplace — in leisure time to
go to public parks,
the gross national product—which
which a missile or a machine has to beach
resorts, to fish and hunt,
is
one
way
of measuring
our
hundreds of thousands
of sepa¬ to take trips and stop at hotels
standard of living—is expected to
and motels.
They not only have
rate parts that must fit exactly
more leisure time because of paid
go up by 25%.
and operate perfectly.
vacations but they have more ade¬
These
labor force projections
Labor Force Projections
quate incomes with which to af¬
The Department of Labor has raise a number of questions. Will ford these recreational activities.

What is more

million a

developments will
velopments such as the increasing
except admissions to motion pic¬
employment oppor¬
use in retail stores of self-service
ture theaters and spectator sports,
tunities for our increased labor
personal
consumption expendi¬ techniques and vending machines.
force? Why should we need so
tures
for recreation have risen Changes in technology will affect
many
skilled people when the
the skill- content of certain sales
over the past decade.
.
growth of manufacturing employ¬
jobs and the number employed in
We Americans are also spending
ment will be slowed down by in¬
these
activities.
For
example,
more for such services as launder¬
creasing use of automation?
manufacturers and wholesalers of
ing,,. cleaning,, haircuts,
perma¬ industrial equipment are expected
We know our growing. popu¬
nent waves, and medical care.
to require increasing numbers of
lation
and
our
insistence upon
Let us consider the rate of an¬ sales personnel with engineering
achieving the ever-higher stand¬
ticipated employment growth by and other technical training.
ard of living referred to as a po¬
tential in our discussion of eco¬ industry during the 1960's, which
The manager, official and pro¬
is very important in terms of job
nomic
growth
will
provide
prietor occupational group will
opportunities. Employment will show an increase of about
consumer demand for more prod¬
25%,
increase in construction, finance,
ucts of farm and factory and eswhich is the smallest rate of in¬
insurance and real estate,
at a
crease
of
the so-called whitepeciaily for more services. This
much faster rate than the 20%
means
jobs. A further answer
collar groups referred to above.
rise in total employment antici¬
to these questions may be found
Within this group, the rate of
in
an
analysis, of the kinds of pated during the decade. Growth growth will be much greater for
will also occur at a faster than
jobs the economy will require
managers and other salaried of¬
average rate in trade, government
ficials
in
business organizations
during the 1960's.
and
all the remaining
services.
and
government than for selfManufacturing' employment
will
Trends in Employment
employed proprietors.
increase at about the same rate
A historic change took place in
Among the blue-collars of man¬
as
total employment.
A much
1950 when the number of workers
slower rate of growth is antici¬ ual occupations, by far the largest
in service industries surpassed the
relative growth is expected in the
in transportation, public
number in the production indus¬ pated

;

complex. The

■

and operating the

between now
today. We

enter the labor force

of manpower trends
special
interest to me

A discussion

ing

■

programming

What forces or
create

pect of

Thursday, August 18, 1960

out to one week's vacation
have
As the result of the increase in
number of older persons, women per worker. Leisure spending has
increased from $3.8 billion in 1939 population and per capita income,
and minority groups qualified for
to $11 billion in 1949 and $20 bil¬ growth is expected among sales
work and
seeking employment?
workers despite technological de-'
lion last year. In every category

Trends and

1960 Manpower

. . .

•

our

Chronicle

Commercial and Financial

(660)

the long
useful

these

preparatory periods was
easing the impact of
changes. While the intro¬
in

duction of electronic data process¬

thus

hospitals and other institutions,
practical nurses, waiters and

waitresses, cooks and charwomen
and

cleaners.

In
addition
to
the
expected
ing reduced the demand for em¬
ployees in ' routine positions, it growth in employment in occupa¬
opened up a relatively small num¬ tions described above, considera¬
ber of better paid positions for tion must also be given to the

Volume

leave

the

Number

5978

within

over

15 million persons

the

ten

Woodford Matlock
A

death,

and

...Ahead of the News

many

N.
Y.
Woodford
widely-known
mutual
executive,
has
an-

Matlock,

oc-

sales

greater

requirements nounced the founding
develop
from
the ford Matlock
growth in the occupation. For ex- Investments
ample, it is estimated that at here. The new
least

each

Matlock

occupation
be about 2% per

Emphasis Will Be

Education

and

And Skill
....

Although
the

only speculate

we can

extent

which

ments.

auto-

tn
to

spp
see

to
to

ann
ana

art
act

emnhasis
empnasis

in
in

Tt
It

nnrm

upon.

the
the

future
future:

Its

will
will

centlv

he
be

w
for

me invesiment pusi

was

sales

c+Lff
Street

consultant

Sales

Corporaoci

selves

young

urged

stay

couraged to
and

studies

people
in

school

and

training possible. Recent
the Bureau of Labor

school

have

shown

graduates

that

Broad Street Investing

mc.

Statistics

Group of Mutual

Corporation,
National
Investors
Corporation and Whitehall Fund,

en-

all the educa-

secure

?Jre

be Funds

must

tribub3r °£the

Our

tion

about

ever

come

Mr.

Matlock

high with

the

began his career
Bankers Trust Co. in

better

much

near not
*

Now

Denver, worked for W. A. Matlock & Co. for six years and was
people who drop out of school be- a vice president and partner of
fore
getting
their
high school Sidlo, Simons, Roberts & Co., in
diplomas. Furthermore, high Denver
before
joining
Broad
school graduates in general earn Street Sales in 1944.
more
and, have, a lower unemMr. Matlock has appeared as
in the job market than the young

do the .drop-

feature

speaker

The

Department

Labor

probably

will have debated
for
10
days before they
take any action on the minimum
wage bill. The indications are that

tion

play

can

the

•

platform promised
mi,
/
AYV.

Senate

A
xYLlIllll/

Poi»fr)AT»
L cXL bllfc/l

already

pro-

The

Committee

reported

out

has

the

selves

can't

It shows

Republicans

thing,

them-

but

that

an overwhelming maj0rity in the Senate and the deminimum

showed
crats

almost

against it

The

have

the

Senator

wage

bill

many
DemoRepublicans.

Republicans
passed

which

alone

civil

would

rights

Keating

bill

intro-

duced. The Democrats themselves,

by an almost total vote, voted it
down. You can't blame them for

doing this. The man who moved
the tabling resolution which killed
civil rights was Senator Clark of

this

when

was

the

Democratic

written.

the

•*

chances

cnances

are

would

bill is passed. This

any

another

and

?^ai£l;. Galbraith kept
dangling his Phi Beta Kappa key

blow

old cat-

*Jeman pulled out his Phi Beta
P ??pa
tabif*

threw it on the

y a
^

-xu

Now, Prof. Galbraith,
let s
about cattle,

he said,

...

QrvoTniVUh

A Viol-f

Dv3dIlgllLj xAllcilL
A

«f

AftHOiniS 1 RlGG

are

for Ken-

though there is

doubt he would

be more effective if elected President.
" As it stands today he will be
elected.
The
only
thing
that
seemingly can kill him off is his

•

The investment firm of Seanght,
Ahalt
&
Inc.,
115
O'Connor,
Broadway, New York City, has

Republicans.

There

are

and sales;

Bert D'Armand is now

in charge of the syndicate depart-

ment,

Andrew

and

join the firm
sultant

Belfi

Sept. 15

will
con-

oil and gas equities. It

is expected that the company's en-

religion. Although we have seen larged quarters on the 18th floor
some signs of this playing a part of 115 Broadway will be ready for
in the campaign in the South, it occupancy by mid-September,
is not pronounced.
Nixon has
which

came

got to fight a smear
out
of
Hollywood

several years ago. He

defeated Joe

Voorhees for Congress and Helen

•

-n

(tSiFVIH
V

AniTlli"

KRTVGGI
V*
r

Gahagen Douglas for the Senate.

*xVAAAAAl' x ai lilCi

Hollywood got out the word that
he conducted a dirty campaign,
He claimed Voorhees and Douglas

Garvin, Bantel & Co., 120 Broad-

catered

the

Communists.

way,-New York City, members of
the New York Stock Exchange,
on

September 1st will admit Har-

did not claim they were Commu- vey R. Jones to partnership,
nists themselves. Nixon is also giv" V
en responsibility for sending Alger
TWft WHli Nnrman
Hiss to jail. It is a commentary 1^9 7*1"*A^oniian IvODCriS
,

but

something

Liberals,, have
Nixon

for

this.

the

so-called

never
forgiven
They coined the

expression Tricky Dick and they
saturated the country with

have

This may not be all to the good
for

The

that it will be the bill passed by
Congress if

°cca£j10IL a Sr°uP
were ^n Washington in,
before Bowles, Cochran

is not intended to be nedy. He is showing that he is announced that Ronald Binday has
b^ the Democrats, not very effective in the Senate, been named director of research

They have
^a|-e

5" ?

one

medical

aid bill along the Administration's
lines.
Instead of tying it to social

onlv

before them. Finally
the mini-

construction.

Finance

nersons

What does thls show?

that

platform

intelligent

cannot

bill and the bill

wage

The OPA gave the farmers a
*larc* time af|d these three men
responsible,
.

allayed^

u-H
3 gi.iuwal*Tea a™n security it wouia proviae tor siate
j^ill from what the Democratic and Federal grants to indigent

known

Penington, Colket

recognized
the
important m
part vocational guidance informa- lU

are

promises

and for school

are a part of Senator Kennedy's party, and he should have

long

platto

any

viding for medical aid to the aged,

They

has

radical

mum

••

number

guidance pro-

our

nesota, and Prof. J. K, Galbraith
of Harvard.

convention.

worries

fulfilled.
The same is true

roc

ommended that

out

their

but who

Democratic

radical

his

Pennsylvania, who is a devout
civil Tighter. He made the move
°hts^(
: ' ■?& Aamutual fund conventions and has because
a
civil rights ..debate
Young workers will need better written many articles on invest- would
up all other legislaguidance and counseling in order ment companies for leading finan- tlon ln the short session and it
to prepare for the complex world cial publications. For many years
waf a sensible thing to do.
of
work
expected
during
the he was a member of the investBut why would this legislation
1960-70
decade.
Dr.
James
B. ment company committee of the have held up everything else?
It
Conant, in his study The Ameri- National Association of Security was because the Southern DemoHiah
School
hac
Dealers.
crats
would
have
filibustered.
can nxgn bchool Todmi
loaay, has
ployment rate than

Kennedy

the

They can go ahead and vote for
Kennedy in the conviction that

the

S
Sr0a3

ge'

vcto

v„nta«p
•

considered

trained

who

try

spec-

the Antarctica treaty

wil? find them" C iqL t^ioS RrnnT^tree1? the Platform
increfsWlv at
dis^d" oSS, ttnlJK2
carried out

cated

form

pass

They

Broad

certainly

it is written upon.

all his working life. Until re-

ness

thing unmistakably.
While they
are
not hurting Kennedy personally, it appears, they are showing up the Democratic platform
for what it is, not worth the
paper

of-

nu-

that

apparent

Senate

and
other
technological Freight Way,
developments will specifically af- Scarsdale.
Woodford Matlock
feet the occupational picture, the
Mr. Matlock
broad implications are there for
has been
n the investment busius
us

But regardless of their madness
the Republicans are
proving one

mation

becoming

and then they came very
passing it..,
<•
\Kt

Rce

days to

pension
invest-

fund

BARGERON

tacle these days. It took them five

sales, estate
planning and
profit-sharing

year.

The

president, will
s p e cialize in
mutual fund

occupa-

while the growth
is expected to

year,

the

about

BY CARLISLE

Wood-

firm, with Mr.

elementary school
5%
of
secondary

and

school teachers leave the
tion

will

teachers

officials

in
his campaign,
Bowles, a fellow named
Cochran, head of agricultural eco¬
nomics at the University of Min-

■

than

OPA

Chester

cupations, replacement needs will fund
result

marriage SCAHSDALE,

causes.

XT). feC&rSUctlG

bring themselves to voting for
Tricky Dick.
One thing Nixon might use ef¬
fectively in the campaign is that
Kennedy has three of the former

FROM WASHINGTON

ATTXn

will with-

retirement,

other

(661)

UPQIIS v/WTl P 11111

years

draw from the labor force because
of

Commercial and Financial Chronicle

occupations. It is estimated

that

The

occupation because
death or transfer

retirement,
other

192

it.
I hear people on every hand
using it and saying that they

(special to the financial chronicle)

SAN DIEGO, Calif.
Curtin

and

John

Donald P.

Smith

have

the staff of Norman C.
Company, 625 Broadway,
members of the New York Stock
Exchange.
Both
were
formerly
joined

Roberts

Penington, Colket & Co., 70 pine thousands of people in this coun- don't like Kennedy but they can't with Francis I. du Pont & Co..
Street, New York City, members
the
Department
endeavors
to of the New York Stock Exchange,
All of these shares having been sold, this advertisement appears as a matter of record only.
provide an up-to-date and careful ?nd other leading exchanges, on
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
appraisal
of
long-run
employ- September 1st will admit Carl O.
ment prospects in different fields J°hns,
The offering is made only by the Prospectus.
Jr. to partnership. Mr.
choice

Through

careers.

Occupational

Outlook

its

Handbook

Johns will make his headquarters

work.

nr?pin>K 2
asset,

'them

fit

prepare

their

must

! our most
must
help

precious

for

talents.

recognize

the

jobs

Above

that

the

represents
both
lenge to the adults who

Plandome

let

our

yeloping. We must

•

every
:
.

given

tion and training for the jobs
in

the

1960-70

Common Stock
(Par Value $.25 per

Clyde M. Goldthwaite to
partnership in the firm.
■

':'-"h--'a''■ '

.-""fvT"

Common Stock Purchase Warrants

Each Unit consists of 2 shares of Common Stock and 1 Common Stock
Purchase Warrant. Each Warrant entitles the holder thereof to
1

share of Common Stock for

ing the first

With Holton, Henderson

Form Cambridge Financial
Cambridge
is

from

Street,

Corporation
securities busi¬

offices

New

York

161

ANGELES, Calif.—Sidney I.
Mandy has joined the staff of
Holton,
Henderson
&
Co.,
210

William

City.

Bernard Frank

JAMAICA,
Frank

business

engaging in
from

offices

securities
at

140-11

Group
formed

Inc.,

conduct

has

$6.50

per

Unit

Copies of the Prospectus may be obtained in any State only from the
may

>;.

Hutton

South

securities

Spring

formerly
.

Company,

Street.

with

Easton

Union Securities & Co.

623
was

Dillon,
<

;

August 16, I960

under¬

lawfully offer these securities in such State.

Hill, Thompson 8C Co., Inc.

King

been

Avenue, New, York City.

purchase

share dur¬

$4.00 a share during the second year, $4.50 a share dur¬
and $5.00 a share during the fourth and fifth years.

Price:

ANGELES, Calif.—Stephen
has joined the staff of

business from offices at 509 Madi¬
son

(Special to The Financial Chronicle)

LOS

Group Equities

Equities,

$3.50

year,

signed and others tvho

E. F. Hutton Adds

Rockaway Boulevard.

Form

years at

Seventh

Street, members of
the Pacific Coast Stock Exchange.
He was previously with Binder &
Co., Inc.

Opens

Y.—Bernard

period of 5

LOS

West

year,

ing the third

(Special to The Financial Chronicle)

Financial

engaging in

ness

Share)

and

Form Pension Investors

Pension Investors Corporation has
—been formed with off ices at: 666
*
An address by Mr. Bockley beforethe
Fifth Avenue, New York City; to
Association of Catholic Trade Unionists,
engage in a securities business.
.Nov/ York City.
'work.

Corporation

admitted

ex¬

world

American Bowla-Bowla

BOSTON, Mass.—George P. Fogg
&
Co.,
201
Devonshire
Street,
municipal bond specialists, have

de-

are

young man and woman is
the opportunity for educa-

pected

60,000 Units

ArJ-mifQ "PQY*t"nPT*

to iOhat

see

f^Hllllto x cxl UllCI

the

people know

young

about the job trends that

NEW ISSUE

George P. Fogg

con-

young people themselves. Our task

which

chal¬

are

with youth as well

decade
a -

R0ad,

mflnadPr

that

all,

ahead

eerned

in Ike firm's Manhasset office, 568

Chronicle

Commercial and Financial

The

(662)

The Cuban "Volcano

of tropical land
bases, but she

great need
warm-water

and

Connecticut Brevities

nuclear war to get

will not go to a

Thursday, August 18, 1260

Cuba.

W. Babson

Bv Roger

United States should Russia
says that the extremely
"ticklish"
situation
warrants first hand study by Presidential
candidates Kennedy
and Nixon, in consultation wjith Governor
Nelson Rockefeller.
Expresses wish that Latin-American countries
themselves would petition U. S. to reaffirm principles of Monroe
obtain

Babson

Mr.

Cuba,

foothold

insofar as Cuba

Doctrine

Pratt

Research Mgr.

discussing the danger confronting

moted to

been

pro-

of the research JT3-D

manager

will

American country. I believe that
Cuba.
Both' the American people would stand
and
Mr
Kennedy for a reassertion of this Monroe
Cuba at once.
Doctrine, but I wish the Latin

The
however,
is

home

Nixon

should visit

nearest

one

•

Cuba
T

WhilP

the

CoUeef students often

Wphher'

m£r
Havana
foart of
Sanation? Cuba hal seemed
to

throw"

tion

Florida.

factor—for
Florida

from

only

any

Cuba

fly

their

"stone's

the first thinSs for the Presiden~
tial candidates to consider sen°usly- The November election may
turn uP°n Cuba' 1 speak wlth au"

the

winter

vital

mS"8 f°™
I

Mismi.

'Ji

Investments

Cuban

jJ.

afraid

Florida's

importing

Ftoida'people "are

any

money

;

H e replaces
George L.
Struck, w h o
wil1 leave the

Michael A. Jacobs

office

of the attorney

Madison

with

;

Standard of Windsor

Hamilton

utility Locks, a division of United Airprovide both steam for heat craft Corporation, has been

piant from which a public

general

joining. The an(j water for air conditioning. In
Company
in
July, addition to serving Constitution

Milwaukee

England.

in New

The Hartford Gas Company will
build
the country's first central

before

1958.

awarded

contract

study

Force

the

Air

feasibility

the

Hartford's east side rede- welding by electronic beam. In its
velopment project, the proposed study, Hamilton Standard will test
plant will also serve the Travelers welcls in sheets of tungsten and
Insurance
Company, the new molybdenum, two high-strength,
Plaza,

-V.u.;"",• ■

certain railway and traction prop-

conferva- ^

very

includes

This

Cuba

4*-*

jnTrpctp/4

Considerable

not

sni

airworthiness certificate is for

ties, Joseph T.

ESh "fUSl
from

Norwalk " Harbor and extensive
planting of trees and shrubs has
been used. But emphasis has been
placed on efficiency as well as
appearance
and generating and
auxiliary equipment are the most
modern available. The turbogenAmerican Sabreliner and the Ca- erator, designed to produce 150,nadian Canadair CL-41 jet trainer. 000 kilowatts, is the second largest

jetliners. The second
the
jet engine which weighs
only 436 pounds but delivers 3,000
pounds of thrust at takeoff. It will
be used in the Lockheed Jetstar
executive aircraft, the North

and Douglas
JT-12

Johnson, pres-

the

Union.

good or evil—to the
Coast, with its fifty

East

south,

and distributors of investment securi-

tbority because I was an early firm in September.
Mr. Jacobs was associated
supporter of the Pan American

por-

United, KLM, "the best looking generating staAvianca, Lufthansa and tion in America." The station is
Ethopian, have ordered the engine covered with light blue aluminum
for installation
in their Boeing siding to blend with the waters of

The entire situation is ident, has an"very ticklish. It should be one of nounced.'

Park

Babson

during

Florida

Iberian,

to do so.

Neighbor

countries would ask us

American

airlines, American,

I
I

the world which may

serious.

707-120B Berlin, dedicated its Norwalk

the Boeing

power

"volcanoes"' nounced to the world over a hun- The Milwaudred years ago by President Mon- kee Company,
explode at any time. My travels' roe—namely, that we would not 207 East Michto Berlin last year taught me that allow any European nation to get igan Street,;
the situation there could be the a
new
foothold in any Latin underwriters
most

and 720B as well as the fan ver- Harbor Generating Station in
sion of the Douglas DC-8.
Seven juiy. The plant has been called

llHiji

several

are

throughout

Federal Aviation

One certificate is for the
Connecticut Light & Power
turbofan
engine
which Company, with general offices in

Agency.

statistical

and

is concerned.

department
There

tificates from the

has

Jacobs

annually. Currently, emnumber 590 and a $100
business is conducted,

division of United Air- million
craft
Corporation,
has
recently ployees
received two airworthiness cer- million

For Milw. Co.
Michael

people and grossed $1.8;

East ployed 92

Whitney Aircraft of

Hartford,

Mhoff &

Life

Mutual

Phoenix

Insurance

heat-resistant metals of great po-

SamfordFormedg
Could

get

and

afford

w^bv 'Its" dosenMs^'to"

Russia

let

base in Cuba for submarines
launching pads for missiles,

TTnifpd

the

pation?

other hand,

I. leave

this

T„1

■Mr:,,

pontHbuted

the

vd&ti U

with

Governor

Nelson

Cub*
VU-r>

ieaving
lCrt Vilig

Rockefel-

dlfu

Castro in his

Batista.
are

Now
fast

men

are

children'

and

women

the

and

wxiat

toe.

these

indirectly

Fidel

against

revolution

Richard

direetlv

famnjes

could we
now afford to go to war with Russia to prevent such gradual oceuon

or,

Manv

States

wui

Company

DENVER, Colo.—Hanifen, Imhoff
& Samford, Inc., has been formed
wRb offices at 650 Seventeenth
street to act as dealers in securi!ies- Officers are Edward A. HanPresident; Walter F. Imhoff
vice president and treasurer;, and
AT nrhnrt T
Cory,fn^rl
Mnvnlnnr
IX/Tv

Steam at the rate of 200,000 normal techniques. The second
pounds an hour will be produced phase of the program will evaluwhich,,r in . addition to meeting ate the welded pieces,
heating .requirements, will be used - - '
*
*
#
,
to; operate refrigeration equipFarrel - Birmingham Company,
ment ChilledI water from this ,nc_ of Ansonia has received
source will.be Tlf? ^ SVfitplTIH ID tVlP order forEli*Litandem of sugar cane
piped to year-round
a
d if"!
a-i-

a v,ar

major

oth^v tential

and
the

building
consumers
in

H W1

-V • L

3eXl by^ictators but^lmy'are ^ted' either ,by W eorport
people6".At heart, they would Uke
peopie. At h'ea rV th ey°wou Id" "ike ™nt. It would be sheer nonsense
these lands among
rurw

have

faim ta

vntj

aiC

tions

divide
•

CubTsSE?of'ttesT La?

Start

keep

Russia

mifht.

might refipnt. Clich
resent such

out

nfflflt/lA
attitude

part of the United States and
make
us
appear
more
enemies
than friends
'
>
:
•
We

hear

now-

much

about

•

Cuban

Elsenhower

—0nt
1 QO not

—

Doctrine, which

was

Fifth

City. Officers

are Sheldon Bern-

£tein, President;.Stanley Schleger,

SeSrtS£o£wS&.

serl/with

office was to keep the public >

Investors Growth
; '

,y,

INelSOtl & F
PDPOttAM

effer to

buy

is neither
any

offer to sell

nor

Cuba

Royal

P PI

rs a

Tir

she. offices

Northwest First- to
securities business.

i-i •

Clifford

are

McBee's Hartford plant
,u
,
...
the beneficiary of a $1,000,000 modernization program to
be completed by the fall of 1961.
The changes will affect most of

Fish,

belt J.

Circular.

WASHINGTON

41,848 Shares

Underwriters,

N.r'w

Automatic Cafeterias

-r-k

Officers

"•

•

way.

fi.

pam«o«tr

the

manufacturing

and

and will include

areas

are

Morton Thompson and Henry S.
Tavern
Drezner-

complete

Boulevard

the

under

Pacific

name

Investors

Henrv

Helser &

Co.

con-

dallas, Texas.

also

$1,000,000

spend

...ill. •

4-Z

construction

months.

addition
the

blein,

within

This

30,000

company's
which

the

square

facilities.

4.^

feet

n Am i

Hansch, Secretary and

Heu-

manufactures

Wiley Young

with offices in the Hartford BuildVltlOC hi 1 ql
*ng to engage in a securities busi
nessOfficers
are
Harmon L.
Watkins, President; . August C.

plant

will be used for

sum

& Company, Inc. has been formea

Heublein, Inc. of Hartford will

rryent business from offices at 1639
firm

Treasurer;

and M. F. L. Lott,

and

Vice-President.
Hansch were

imports quality foods and bever-

Mr. Watkins and Mr.

ages, has occupied

formerly with Parker,

1noo

its present site
...

1938 at which time it

„r

Ford & Co.

and Ware & Company.

em-

Service.

Price $3.00 per

1
Form
WEST

Copies of the

Offering Circular

undersigned

from

may

ycur

be
own

obtained from

dealer.

the

Security
been

GRAY CO.

HEMPSTEAD,
N. Y. —
Growth
Investors
has

formed

with

offices

business.

securities

Myron J.

are

RICHARD

Security Growth

Klar.

•

Partners

CHAS. W. SCRANTON &
Members New York

New Haven

SECURITIES

New

Opens Investment Office

New Ycrk 34, N. Y.

MT.
-

Shaff

VERNON,
has

opened

Y —Anne

offices

Boulevard to engage
securities business.
Central

York—REctor

Hartf»»rd—JAckaon

70
a

CO.

Stock Exchange

CONNECTICUT

Gromet and Henry

237 West 51st Street

Tel.: PLaza 7-5910

Primary Markets in

165

Hempstead Turnpike to engage in
a

.W,th-V Henry Helser ?
,,
reno^atm« work Wiley, Young Co. Formed

manufacturing activities will

Victor

HONOLULU, Hawaii — Albert K.
Michioka is conducting an investKapiolani

Wash— Tack son

vAKTMA

methods, rearranagement of de- bus;nes5 frcm offices at
Fv.„
S f,n ,Pr°V1S1Cn
addl" 31st Avenue. He was formerly
tional working space. Regular

Common Stock

J. H. Welch Opens

assembly

Wek?^coMucUni^"securitS
107 North

^ecwiUes
a

New York city t0 co"duct

securities business. Partners are

with

Order

Pacific Investors

Share)

Thompson c0. been
& Company viqo
has

■

Orsinger,
President;
Joseph
G*.
Dooley, Secretary; and Aubrey A.
Arnn, Treasurer.

for Industry/ Inc.

per

If- has been

engage^if

business.

•.

Underwriters

Order

10c

L7tS'fnWeTn"rTs";yand ^
Wegner, Secietaiy.
r,

(Par Value

.„

will

solicitation of

cf thes3 securities. The offer is made

only by the Offering

tunmnonn
Thompson

dustries.'

•"

President; Louis E. Nelson, Viceannouncement

which resulted in the formation of lic in 1958.

A 11

GRESHAM, Oreg. — Nelson &:
Fish, Inc. has been formed with

Officers

f^ormation'Offee^?ne was,shipped by Farrel-Birmmgham to the Dominican Repub-

formed with offices at 258 Broad-

engage

This

tools, has specialized in designing
'and building sugar mills since the

the 28 Connecticut in- cjre comparable to ^ Argentine
the ™L°La

*n 1959 by

vnrt

Avphup

pllrt,r

omsme m
own beet-

our

Russia wants to get

an-

^07

■••"v

high rated capacity. Farrel-Birm-.
ingham,f which -manufactures
heavy machinery and machine

well

Monroe

Know. OUCn borp.

ufllrw

sugar companies.

the

handling

" g ?
companies

Cuba,

Govern-

^CtSxiatlOIl,

the

j._i

mill will have a capacity of 6000
metric tons; a day, an unusually

rtiucuwa.

uvuui

vehicles and
to weld by

—

v *

...

vumcx

Hanifen

space

difficult

but

Oflll

JUr

& Co., in Denver., Mr. ; The Insurance Information Ofler, who is one of our best-posted brother becomes Prime Minister. Imhoff and
Mr. Samford were fice of Connecticut, in Hartford,
men
on
Latin America.
This can oniy be ascertained by formerly with Coughlin and Com- has completed a regular bi-annual
waiting and watching.
*
pany, Inc.
.
survey ;■ which shows - that the
Cuba and Latin America
Thp
largest
American
invest'
' '
State's insurance ; payrolls rose
I have visited all the countries
ments
are
in
the
sugar
lands,
Key Investors Formed
1°% in the last two years and
of
Central
and
South
America.
which
nf
necessity
must be odVw
tn„octnrc
t™ > io
that a Quarter °f a billion dollars
attitude of his brother in case the

use

missiles

area

2-9377

7-2t)69

Teletype NH 194

""r*,nuyi,MrTr'

iwt.-n^S-ui

Volume

192

Number 5978

"* f WLwrifpt^ *$#+

i,r;

WMFUWWl*'UMtai

;~, moi utwN <?*.» w A. ..tun,^.

is it www ti^ion'A^n^ wi wHHftii; ^ .*" tu ^'r

\t\i

tW^i'^WhU^iv. U?uj ito^V«mwW1MrtVW1« mifittmmm^ifrii tm«"¥»«r~Mn m^uw-e^ntJl^ MAtft kttrt hkifeUlMM'fbb

The Commercial and Financial Chronicle

fw^wwwti s ww

(663)

by 1959
1.9%.

Electronics Factory Sales—

Table
tures

Investment

Electronic

firms

and

investors

suffer

from

ments.

sales

The

gap"

projects

the

data

usual
of

electronics

few

with

that

seem

stocks

the
munity would

the

tailed

the, past

investment

years,

analysis

The

un-

tlie prices offered

appreciation

which

Table

of the electronics
whole and of its

nomic aspects
industry as a

com-

|a ve at its

ma-i°r segments.

penditures

'•'

during

this

decreased

1951,

1952,

eronnmip

alyses

^Eiii

The

iiiiiiiiNii

sales

119549524

»yyf

pipptrnnW

•SidiKfrV

Till?- BlEw

Wp k

fu"

ilffJI

marked

stock

leaHintf

+ h

of
nf

bnJtliZ
and

goods

•

ized

nor

those

are

not

are

goods

sumers,

only

and

rails, autos,

relevant

Gross

Sales and

types

of Pertinent
"1? ^la ++J??y+UalS°
to the fact that that

whereas

the
electronics
represents goods only.) •

many

rp.

•,

;

}}e ^a a

electronics

grown

i-u

quite

aid

such

agement
and

would

the

surely

this

disabuse

firms

Both

industry as well as
potential investors in

electronics stocks have
assessment
,

term

the

trends

this

namic sector of

and

new

our

economy.

TABLE

National

Product

and

not

(as

Factory

with

all

such

with

contrasted
food

find

electronics

and

this

case

spending.

durable

improvement to 4.7%
close.

This

goods

at the dec¬

latter

somewhat

cance

when

trend

as¬

signifi¬
against
a

greater

viewed

tendency away from dur¬
ables spending as a whole on the
slight
part

durable

consumers

spending

of total consumer
1950

and about

—

The
In

14%

Industrial

Table

III

consumer

about 16%
expenditures in
was

recesssion

im¬
con¬

spending

by 1959.
Picture
examine

Report

1.6

the

6.9

President,

19(i0,

June,

19(>0.

TABLE

159

Electronics

Industries

Bulletin, December,
'

(in Billions)
(Col. 2)

(Col. 3)

(Col. 4)

•

Total

Military

Electronics

Expenditures

$14.3

•

Col. 3

Spending

Col. 2

$0.5

33.9

3.5

1.1

46.4

3.2

2.1

4.5

2.7

5.5

41.2

2.7

6.6

39.1

2.8

7.2

1956,_

40.4

3.5

8.7

1957

44.3

4.1

9.3

49.3

1958..

44.5

1959

45.8

;

Data:

(Col. 2)

4.4

9.9

4.7

10.3

Economic Report of the
President, I960, and Electronics
Association Fact Book, 19(»0.

Industries

for

all

equipment

and

for

elec¬

tronics equipment.
The

ture

industrial

presents

that

outlined
we

consumer

above.

From

pic¬

contrast

Table

III

Total industrial production

measured

dustrial

the revised

Production

creased

41%

from

In¬

Index

in¬

1,950

to, ,1959,
industry' for

expenditures
by
equipment rose a similar amount,
43%

but

industrial

uses.

electronics

factory

destined
Table

for

sales
military

IV presents

Table

reveals that:

(a)

Total military expenditures
increased
from
$14.3
billion in
1950 to $45.8 billion in 1959—a
220% ris^. The* portion of elec-,

tronics'factory sales purchased by
the military rose by 840%
over
the same period.
(b) In 1950, 3.5% of total mili¬
tary expenditures went for elec¬

tronic
equipment; by 1959, this
Spending by industry for ratio
had
increased
to
10.3%.
equipment, e.g. com¬ (These data do not include re¬
puters, testing and measurement search and development and op¬
instruments, industrial radio and eration and maintenance expendi¬
TV, etc., was 2.5% to total indus¬ tures.) j- ./
trial equipment spending in 1950;
(c)
While total military ex¬
by 1959 this ratio had risen to
penditures decreased twice dur¬
6.9%.
ing the decade, viz, in 1954 and.
(c) Whereas total spending for
1955, military electronics spending
industrial
equipment
decreased
increased each year with the ex-:
twice during the past decade (i.e.
ception of 1954 when they re¬
in
1954
and
1958, spending for
mained level.
electronics
equipment increased
n
continuously with the exception
Electronics Factory Sales in 1965;
of one year, 1952, when it held
Elements of a Projection
•

(b)

electronics

constant.

both

the

terms,

lear

This announcement is not

absolute

and

greatest

economic

Although

relative

increases

Continued

Curreit Dollars

Factory Slies

$284.6

$2.6

329.0

3.3

1.0

offer to sell

or a

solicitation of

offer to buy

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

jW-

•

forecasting!
on

any

Col. 2

0.9%

347.0

4.3

365.4

5.2

1.4

363.1

5.4

1.5

397.5

5.8

1.5

1956—2

419.2

6.9

1957_

442.5

8.0 :

1958__„____

411.7

8.2

1.9

1959—„——

478.8

9.2

August 18, I960

NEW ISSUE

1.2

1953——-—-

1.9

—

110,000 Shares

Economic

Data:

tbe ."-^idcnt,

Industries Asociation Fact Book,

lilfiO,

(Col. 1)

CLASS

(Col. 3)
Consumer

Total

(Col. 4)

1950—

Spending

A COMMON STOCK

(Par Value $1.00

Consumer

Consumer
.

LEE FILTER CORP

per

Share)

(In Billions)

(Col. 2)

Year

Electronics
;V' -

and

Total, Durable and Electronic Consumer
'

1.8

1!>G0.

TABLE

1.6

Durable

Spending

$30.4

(Col. 6)
.

Electro-)ics

Col. 4

Col. 2

Co!. 3

$1.5

0.8%

Price: $8.75 per

f'o'. 4

Spending

$195.0

(Col. 5)

4.9%

1951

209.8

29.5

1.4

0.7

219.8

29.1

1.3

0.6

4.5

1953_

232.6

32.9

1.4

0.6

4.3

4.7

19.2

238.0

32.4

256.7

1956_

1957

293:0

1959——

D"t»:

Fact

Report

Book,

19(»0.

the

other

dealers

4.3

0.6

4.2

37.6

1.6

0.5

4.3

2.0

0.6

may

be obtained from the undersigned and from

lawfully offer these securities in this state.

4.2

1.7

3.8

0.6

'4.7

Myron
39

Economic

Association

0.6

1.5

1.6

43.0

311.4

38.5

40.3

284.8

1958———

1.4

39.6

269.9

Copies of the Prospectus
such

President,
„

!9(iA,

and

Electronics
-

Industries
~

Broadway

endthe rela-

equipment increased by 300%.

the

by industry

(Col. 4)

Elec.ronlcs

were

vant data.

pattern

that:

see

may

electronics

marked

the

electronics
those

Sales
'

(Col. 3)

GNP

<
r-'f

(In Billions)

1950—

Economic

1953—

propor¬

slightly

23.2

Year

consumer

compare

20.2

(Col. 1)

.141

can

spending but
spending for dur¬

consumer

ade's

were

Electronics

6.9

.6%.

sumes

proof.
(c) jn 1950 electronics factory
sales constituted .9% of total GNP;

dy-

152

1.4

25.0
26.2

(Col. 1)

(a)

pattern

Gross

5.0

elec¬

spending at the beginning of the
decade, and by 1955 this ratio had
decreased to 3.8% but since then,
there had
been a rather steady

decreased twice dur-

^tJiey

long and short

151

1.3

20.6
T

Total Military Expenditures and Military Electronics
Spending

consumer

goods

total

In relative terms, consumer
electronics
goods were 4.9%
of

'ZTihfJff) n* virgin S
0
J e last
\ecesssion

urgent
need for analytical evaluation and
an

146

4.0

clearly'

(d)

in^ ?ls Toil6* fSS S?
9
and from 1957 to 1958* Eleetromca-^act°ry sales on the other hand

the

current and

tt»

the

3.9

1.0

elec¬

consumer

electronics

consumer

$2.6 to $9.2 billion

or/uv

will

essay

management
belief.

erroneous

0.8

This

Table I indicate

of,

130

ables increased by 41%, somewhat
closer to the 33%
we found for

?9' or 68%* Total electronics facs?!®sover
sa™ K-°d

help

one

.8% of total

when

services).

Knia

man-

not

hoped that

outcomes

this

their

well hinder future

may very

growth.
be

function

3.8

f.!S!ci!ltiJon, Fact Book' I'm0> and Federal Reserve
1959 and

that:

series
•

1950,

non-durables

+° eiS^^u?86 J0?1 Kftfo
onip0? ,2*^^
?

economists, feel-that the addition
of

This

consumer

able

that:.

firms, having
rapidly without the

0.7

Data:

i.e.,

consumer

but by 1959 this

with

ascribed

situation

sumer

In Table I we show

was

proved

J16

that

The

eco-

138

28.5

spent by con¬
decreasing proportion

tion had declined to

National Product

Thi!

127

3.1

—

goods.

tronics

comparifn thm SS
P +uS ?uf \n pa
son of electronics factory sales
o~fJ <7e ySU+ ?ue ?C r°I^c5 with the best single measure of
th
AffeSSf?'' aii?
i
i,
^
our aggregate economic activity—
JhiewSuf, 0t ln electronics in- Gross National Product. (It should
g+
at° JrG
be. noted however that -GNP is
5*1??TTbtt&l Olassifi- calculated by summing the total
L
°
mP* ?' Commerce De- output of goods and services

Efei

tronics

v;.

Factory

2.7

0.6

money

devoted

was

factory sales would be more spending

context of some
nomic variables,

0.5

19.5

To put it some¬
of increasing

differently

amounts of

see

formal-

this period.

what

shown in Column 5 where

services

readily available

over

goods > rose

meaningful when vieWed in the

Harry Greenfield

electronics

not of services.) Obviously, data

■

18.6

their

factory sales of

«»♦««}

thP

factory

that,

119955402

123

re¬

1954.

problem referred to above cover

#!»»

W§

scholars, Economir
cfn^

and

113

2.7

1959___

goods

and
—

2.5%

spending more to-,
wards goods other than electronic

but in and of itself, not a very
informative statistic.- (Note that
Qur data, due to the classification

^pv

flmnip

knowledge
of

1958,

Index

1947-49=100

0.5

year

spending

times
once

Col. s
Col. 2

$0.4

would indicate that consumers di¬

lr-?,m $2'6 ?o™°" to 195? to t?9„2
billion in 1S59 is an interesting,

the

each

electronic

three

mained-constant

rected

?J^e ^ie~"

period,
for

consumers

Industrial

Electronics

18.4

1956—

consumer ex¬

increased

(Col. 5)
Production

$16.2

1955

consumer

(b) Whereas total

follows

(Col. 4)

Industrial

Equipment
Expenditures

1954—

$311.4 billion. Consumer spending
for electronics goods rose by 33%

guide to further deinvestigation ;of;, the ecoas

(Col. 8)

;
■

1952.

—from $1.5 billion to $2.0 billion.

It would

Production

1953

;

Total

Tota I

1951____-

(Col. 2)

1950——.

—

respectively, 33, 300 and 840%.

> grow,

con¬

and Industrial

Industrial

Year

with

expendi¬
tures increased by 60% from 1950
to 1959
from $195 billion to

replacement parts products. Sales of the first three are expected to
•.'*

1950

side

electronic

note:

(a)

by 1965 from $9.2 billion in 1959, a 85-95% increase and, in

side
on

19587

consumer

Spending

(In Billions)

(Col. I)

expendi¬

may

turn, breaks this down for sales of consumer, industrial, military and
:

total

types

goods such

From

$17-18 billion factory

shows

all

like.

industry's whole and principal seg¬

economist

electronics

t^LE III

radios, tele¬
vision sets, phonographs and the

according to Dr. Greenfield who attempts to meet some of the needed
evaluation and assessment of the

Picture

in the economy from

sumer

"information

through 1959
expenditures

Management Corp., San Diego, Calif.

increased

Consumer

goods

By Harry Greenfield, Ph.D., Director of Research, Electronics

ratio

Total and Electronic Equipment

The

Perspective and Projection
:

this

Lomasney

BOwling Green 9-8120

Co.

New York 6, N. y.

page

(664)

are

very

though

BY JOHN T.

centers from this country,
expected that this move¬
will be of sizable propor-

money

it is not
ment

tionJs.

CHIPPENDALE, JR.

It is

surprise move last week by

The

Banks in re¬

the Federal Reserve

ducing the discount
rate from
3%%
to 3% indicates that the

going to
credit on the am¬
ple side and interest rates on the
monetary authorities are

dle

first time in

quite

downside

long as there is ero¬

Board

serve

sion in the economic

system. This
lowering of the Cen¬
tral Bank rate since June and it

credit

is the second

discount

gives notice that the powers that
Be are going to continue a policy
of ease in the money and capital

ber

Federal Re¬

by the
make

and

money

rate

requirements of the mem¬

reserve

banks in the Central Reserve

Bolstering Move

Economy

Lomasney Offers
Lee Filter Com.

when

institutions

member

same

determining their reserves, should
more than take care of the sea¬

Federal
Reserve Board in decreasing the sonal needs for loans from busi¬
agricultural comdiscount rate is an effort to bol¬ ness and the
Iir other words, it is be¬
ster the economy which has been munity.
This latest action of the

span

narrow

Up-Dating Packing Company
many attempts to build
interest, there hasn't been any

Despite
up

sustained investor attention in the

packing stocks since the end
rationing after War II.

meat

moving narrowly Nevertheless, some of the cyclical
and, on occasion, even showing outfits in the business have made
slight losses because of the diver¬ progress at smoothing out their
gent move of a few components. historic pattern of boom-bust see¬
New highs
posted daily held a saws. Armour is one that had an
commanding lead over the new erratic earnings history but seems
lows, a condition in effect for to be doing something about it.
well over a week to give the tech¬

larger

amounts of the vault cash of these

markets.

over

were

averages

Chicago,

counting

the

plus

and

York

cities of New

the

that

was

gains each day for a rather long
string were able to run well ahead
of the declines even while the

reported
in the 2%s of 1965 with the idea
in mind that a "forward refund¬
ing" offer will be made to the
holders of this issue shortly.

through the lower
and reductions in

easier

result

net

The

been

also

have

chases

been

cautious

technical threat, some

year

points.

buying showed at times.

pension funds, according
advices, have been buyers of
the 4s of 1980; the 3V2s of 1990
and the 3s of 1995. Scattered pur¬

Situation
move

keep money and

The

great concern.

cause

year's low so that there was

the

this

enough above

dustrial average far

State

Business

Reserve Policy Keyed to

Buying by Pension Funds

while.

policies

enough to

for the

Governments

term

and mid¬

in the shorts

ing for some incentive for more
determined action.
With the in¬

inflation, the
gold outflow should not be large
fiscal

increase in earnings due
to where the dividend
requirements should be earned
twice over.
Its year's range has
sharp

see-sawing

less

loss

through some aim¬
this week, wait¬

Stocks coasted

believed that as long

in the confi¬
dence in the dollar, due to unwise
is

there

mitments

AND YOU

...

WALLACE STREETE

European

various

Thursday, August 18, 1960

. .. *

THE MARKET

large

some

shifted

GOVERNMENTS

abroad, has
demand.
Al¬
funds have been

available

which
still

Our Reporter on

Chronicle

Commercial and Financial

The
16

favorable

another

nicians

outlets

gaining days recent¬

The better

Corp., a New York cor¬
poration on Aug. 16 offered 110,000
shares of class A common

pattern

changed with

was

of widespread

serve the- many
in all
geographic

plants

Gains With Volume

Lee Filter

old

The

omen.

small
areas

the growth of

supermarkets which prefer central
accompanied by a
buying centers. So Armour set
pronounced
pickup
in
volume about eliminating outdated plants,
sagging for several months.
It is lieved by many money market stock ($1 par) at $8.75 per share, with a dropoff in trading activity modernizing the central ones and
also admitted very readily by the specialists that the powers that be through Myron A. Lomasney & when profit-taking moved in and
diversifying through soap, phar¬
that pattern showed up again this.
monetary authorities that the in¬ intend to not only keep the money Co.
! Ymaceutical and fertilizer lines.
\

have

fears

flation

and,

subsided

condition pre¬
vails, there is no need for tight
money. The lower Central Bank
rate does, however, bring it more
long as such a

in line with the
ture of money
\

prevailing struc¬

capital markets in a position
all legitimate loan de¬
mands but also on the buoyant

The money and capital markets

to be digesting the refund¬
ing issues in a satisfactory fashion
after a period during which these

appear

issues, especially the 3yss of 1968,
were
bought and sold on what
has
been
termed
the
"gravy

The

meet

side

the

cause

further

deteriorate

not

short

be¬

of money

tightness

credit.

be very evident
light in the future
course of
the money and capital
markets is still going to be the
It

appears

predictable
course
of business.
patterns
which are being

The

the

for

chase

than a bit of
train." This brought about pur¬
chases and sales of the issue by uncertainty since there does not
not
a
few institutional
buyers, seem to be very much agreement
traders and dealers before they among the leading economic con¬

in this security.

trades

Price Appreciation

has

taminants

future,

the

The

filter^ for

defensive
securities still goes on, with se¬ direction. Even though there will
lected intermediate - term issues most likely be some recovery in
now
being bought by those who certain indices with the advent of
Fall, it is not expected that a
are interested in not only a fairly

Prospects

;

•

The movement into Government

good yield but also in the appre¬
ciation

that

prospects.

quite

chases

are

few

It is reported

of these

pur¬

being made from the

proceeds of the sale of common
stocks.
There are also advices to

careful

effect that commercial banks

have

been

making selected com-

betterment

minor

the

pattern

is going to change the prevailing
course of ease in the
money and

As against this,

capital markets.
it is evident that
the

tone

uncertain
will bring

a more

economy

in the shortand long-term sectors of the

with it greater ease
term

the

since

watching

interest

the

with

market

rate

down.
This could
be
accompanied by another re¬
duction in the discount rate as
well as a decrease in the prime

level moving

Until there is evidence that the

and

VS.V; '

business

trend

downward

U. S. GOVERNMENT

being reversed, it is believed that
the money and capital
markets
will be kept on the easy side with
the interest rate and yields also
tending in that direction.

FEDERAL AGENCY

and

for

Hoping

Banks

Commercial

farm

machinery

trade

and

such

names

mobile supply stores,
tions

and

automobile

item in its
hasn't generated

the

large money centers

"forward

the

especially

Treasury,

the

and

well
of

these

Aubrey G. Lanston
6c Co.
INCORPORATED

☆

CHICAGO

will

comes

tive, such as an "advanced refund¬
ing" offer which would give them
a

higher

tronic

coupon

rate, along with

(tax) losses to be taken now
the obligations which
would
be exchanged for the new refund¬
ing securities.
The short-term market, in spite
no

☆

BOSTON

the

trast

lower
with

rates

the

here

higher

con¬

returns

some

other

The

operations.

elec¬

company

currently is engaged, under a new

each of the following
Italy,
Canada,
Peru,
India, to manufacture
sell its products. The company

profit for the first quarter of this
year on a sales increase of the

Blackhurst

now

—

both

and

good

The uncertain element
company's picture has been
construction and engineering

this year.
in the

its

operations which depend on how
busy industry is in expanding.
This

of the

phase

able to show

operation was

sales jump that ran

nearly three-fold for the first
this

half

year.

has been stressing
manufacturing and chemical
operations to eliminate its vary¬
ing capital expansion fate and out
of sales of $147.7 million for the
first half,:1 the construction divi¬
sion's contribution was only $31
The company

its

Steel Products, as
known, was almost
completely dependent on the ups
it

and

downs

only

with

then

was

company, Chrysler.
A
of
acquisitions, starting

one

series

with

of
auto
production,
large extent by those of

the

look,
off

about

the J.

Ross

the improved out¬
price of the shares is
a
quarter
from last

An Upstanding

Engineering

Aviation-Missile

Move
The

minimum of time is Mid¬

and to

John H.

affiliated

into the
increases
sales and earnings so far
running

average

bracket

Midland

ago

Lester, Ryons

ANGELES, Calif.

increase

land- Ross Corp. Only three years

(Special to The Financial Chronicle)

LOS

7%;%

The changed operation that has

taken

machinery of its own
design and construction and ma¬
terials for use in manufacturing
censees,

size.

same

provides information and techni¬
cal
advice, and sells to the li¬

Joins

that offers a yield well

year's high and even more below
the
highs
of
more
prosperous
years of the last decade.

now conducted domes¬
tically and in two dozen overseas
countries. The efforts were re¬

dealers.

and

above

stands out

Koppers Co.

one

operations

service sta¬

these products.

the

;

million. Despite

flected

and

been

earnings,
as

president, in improving its profit
position by tying in more closely
the
widespread
manufacturing

auto¬

new

missile

;

interest
had

■

aviationlargely died
in

week, although the - items
in the section were able to show

out this

good stability. The good dividend
one in this group is North Ameri¬
can

Aviation

recent
ment
some

which

had

in¬

434% at
levels. Moreover, the pay¬
is
relatively safe. Where
of
the
old-time
plane

dicated

return

some

of this type
the missile
field, North American still re¬
industrial machinery, temperature
tains an important position in sup¬
control systems, aircraft and mis¬
plying
manned aircraft to the
sile
components
and
other military, and was able to build
With Marache, Dofflemyre
"heavy" industrial wares.
(Special to The Financial Chiionicle)
up an
important participation in
The ultra-cyclical nature of the
the missile field at the same time.
LOS ANGELES, Calif.—Harry V.
firm, apparently, is largely re¬ The shares are available at levels
Katz has become connected with
under the highs posted every year
Marache, Dofflemyre & Co., 210 sponsible for its lack of investor
the
despite
drastically since 1955 with the exception of
West Seventh Street. He was for¬ appeal

Lester, Ryons & Co., 623 South
Hope Street. He was previously
with Marache, Dofflemyre & Co.

merly with J. B. Hanauer. & Co.

extension of the maturity, and

NEW YORK
☆

and

something

along which is going to be attrac¬

20 BROAD STREET

still pretty
portfolios

the

institutions
until

remain

are

ensconced

it
of

the

The

1970s.

obligations

2%%

1960s
214%
and

due

issues

the owners

should be made to
selected

offer

refunding"

work and this
the enthusiasm

Spain

the

are

that would benefit most from

na¬

countries:

ones

showed

that

Lee Filter has licensed one com¬

outside

banks

Commercial

Telephone's

big

"Forward Refunding" Offer

Securities

year.

and its telephone and tele¬
graph operations abroad are now
the minor part of the business.
The electronic production is the

other wholesalers who sell to
users

years

approximately
700
distributors, jobbers

ultimate retail

under Cuban

changed greatly in recent

ture has

nationally advertised. The prod¬
ucts are sold in the U. S. by 51
authorized
"manufacturers'

and

It showed

has

•

in general, the pattern
higher sales but lower

Where,

International

"Lee" and "Resinweld" which are

agents"
to
warehouses,

been

has

company

products are sold and distributed
nationally and abroad under the
marks

bit more

14 points all year.

control'for more than

Ninety percent of the company's

trade

only

erty was formally seized since the

equipment.

pany

bank rate.

Specialists in

use

industrial* and

area

little shock when its Cuban prop¬

in American and
the tone foreign Mtomobiles; in trucks;

of it is still veering in a

in fact, wandered

and has,
an

than

tractors; buses and aircraft; in

situation will

business

tele¬

Cuban

its

over

air, oil and fuel.
produces a variety

Attractive Yield

Telephone, which

been living in the shadow

issues

bear very

Buying

a case

phone subsidiary, was one of the
narrower-moving of the electronic

from

company

largely

confiscation

manufactures and
for the removal of

filters

sharp increase;
profit for, the fiscal 1959 year
on a
1% increase in sales and for
the first half of the Current fiscal

Interesting IT&T

dust, sludge, acid and other con¬

that

evident

however,

was

International

not used for the
above purposes will be added to
working capital.
The company

foreseeable

the

For

;

purchase

proceeds

Any

Credit Ease to Continue

have

and

products

sells

sized profits were reported
been realized from the

good

new

The result was a

year,
ending April 30, earnings
jumped 53% on a decline of more
of the elec¬
than 3 % in sales. This'would seem
tronic, bowling, pleasure time and to reflect the new efficiency. But
vending machine items that were so far the market has not reflected
the leaders, leaving a rather large
it
and
the issue is selling far;
group of issues neglected which
closer to the year's low than the'
has been the story of the market
high and more ;than .10 points
for many months.
lately under the high.

equipment necessary for the man¬
ufacture and production thereof.

business

paid for on the 15th of the sultants as to how the
month.
In each instance, fairly picture will work out.
were

well short of being
unbridled optimism but was the
first
show
of
mild
optimism
around in a month.

machinery and add to raw mate¬
rial inventory as well as finance
the research and development of

to be open to more

time this
contributed

to what was

the

obligations,

bank

plans to construct and to pur¬
additional tools, dies and

ter

appear

economy

month. This obviously

$328,000 to discharge

term

third

the

for

week

ag¬

use

proceeds of which have been used
by the company to provide addi¬
tional working capital, and other
short term indebtedness. Lee Fil¬

that the guiding

forecast

will

company

gregate

that the economic situation

will

and

rates.

■.

and

have been

late in

1957, today has turned the
company into one that relies on

changed
Its

With Schirmer, Atherton
(Special to The Financial Chronicle)

PORTLAND,
Webster
with

has

Maine

—

become

affiliated

Co.,

its

business.

supplies a yield ap¬
proaching 6% which is downright
handsome
against some of the
or

available

stocks.
the

1957.

dividend

missing

Alfred

Schirmer, Atherton
634 Congress Street.

nature

makers gave up most
of work to rush into

negligible
the

returns

popular

Company reports indicate
is a thriving one,

operation

sales running at record levels and

Field
field is
one
that lately has been some¬
thing
of
a
newcomer
to the
"growth" circle, including Ameri¬
can Photocopy which has become
the leader of the industry. While
The

The

Copying Growth

industrial

copying

,v,

•su;i.

Volume

Motors

good growth has been posted, the
copying industry estimates that
only 15% of the photocopy mar¬

eral

ket

consisted of 500,000

has

been

despite

tapped

Corp.
Total capital
surplus on June 30, 1960
amounted to $397,477,092.
This

large strides made.

par

the

moved

ahead

minimum

where
of

one

only

some

bit
the

growth ahead but followers of the
issue

glowing in the potential

are

that faces the company. American
was able to double sales between
1956

1959

and

-among
its
high level of
in
supplying
and chemicals to users of

strong

points is
repeat
business

cumulative

assistant secretary. All officers except Mr. Turner are also directors
of

pre¬

Clark, Dodge & Co., Incorporated,
$100 par value common stock, a member corporation of the New
$10,453,000 of paid-in surplus and York Stock Exchange, will be
formed as of September 1st. Offi¬
$187,024,092 of earned surplus.
cers
of the new corporation will
be T. Jerrold Bryce, chairman of
Named Director
the
board;
Eugene M.
Geddes,
Maxwell J. Mangold, president of
president; Arthur O. Choate, Jr.,
First City Securities, Inc., an' un¬ chairman of the executive com¬
derwriting firm for medium-sized mittee;
Perry R.
Pease,
senior
companies, has been named to the vice president; William M. Rex,

better than 1%. This undoubtedly

discounts in advance

shares of $100

stock

and

Board

1,500,000 shares

the

Clark

firm.

also

George

David C. Packard has become

of Directors of the Ameri¬

Goldstein
have
Co.

and

formed
with

Lane

Arnold,

offices

with

Y.—Arnold

Ernest

engage

and

Wilkens

Wilkens
1005

headquarters

New

sale
York

representative
for

business.

sec¬

area

7V":

porated.

■

Barth & Co.

:;7:

How Western Electric

underwriting syndi¬

Helps to Keep

& Co. and composed of 235 invest¬
ment firms is placing on the mar¬

ket

Aug.

General

17,

$150,000,000

Down the Cost of

Motors Acceptance Corp.

22-year

Telephone Service

4%%

debentures,
due
1982, priced at 99%% and accrued

interest to yield 4.68%

ity.

-77
Net proceeds

the

to matur¬

There

;

from

debentures

will

the

for telephone

great benefits

are

users

in the fact that

added

sale

the Bell System

the general funds of the company
and will be available for the pur¬

has its

manufacturing and supply unit

own

chase of receivables. The proceeds
be applied initially to reduc¬

may

tion

short-term

invested
The

borrowings

short-term

debentures

new

securities.
are

not

re¬

he
T

deemable before Sept. 1, 1970, ex¬

cept that, under a special redemp¬
tion

Western Electric Company

integral part of the Bell System

essential member of the Bell

—an

provision applicable on and
after Sept. 1, 1965 under certain
conditions of declining retail re¬
ceivables, the debentures are re¬
deemable at; ^special redemption
*

System team serving you.

prices.
In the 12-month period
beginning Sept. 1, 1970, the de¬

amazing requirement: Western must

bentures may be redeemed at the

option of the company at 102%%
find* thereafter

der certain

conditions of; declin¬
retail receivables the deben-

ing

tures may' be redeemed: at lower
redemption prices.
;*

products manufactured by
General Motors Corp. to dealers
new

for resale and finances such deal¬

ers' intsalment sales of
ucts

well

new

used units

dollar

the

volume

purchased

the

receiv¬

first

six

months of 1960.

Notes and bills

deducting
loss

and

sidiaries
amounted

receivable, after

unearned

reserves,

pany

its
on

held

income and
by the com¬

consolidated sub¬
June
30,
1960

amounted

indebtedness

apparatus and parts

from

General

Motors

Corp .all of the outstanding cap¬
ital stock of General Exchange
Insurance Corp. as a capital con¬
tribution. Effective May 31, 1960,
G.E.I.C. was merged into Motors
Insurance Corp., the continuing
,

corporation. M.I.C., wholly-owned
non
consolidated subsidiary of
-

The

■

quantity of these items varies

over an

astonishing

—from

one

Western

skills and

range

to many

any year

millions!

Electric's

specialized

experience are big assets,

of course, in

doing the best and most

dependable job at the lowest cost.
and

WESTERN ELECTRIC is the

47,000 of its 129,000 employees have been with the company for over ten years.

might not have been developed

for

than twenty-five* yfcars.
•'

at
a

manufacturing and supply unit of the Bell System. More than

they would be far less effective,

But

Their experience is
77

■;

one

.7' -7

70 %

engaged in reinsuring about
the insurance written by

Motors Insurance Corp.

All

the

capital
owned by Gen¬

outstanding

stock of GMAC is

13,000

of. the company's greatest assets.
7777 77 ..7
''77'7;,
.

all, if Western Electric were not

part of the Bell System.

portant part in offsetting some of

these

other way

the increases in other costs of pro¬

great national effort.

could it work

closely with the research of the Bell

creases

Many of these in¬

viding service.

Telephone Laboratories and the
needs

the Bell

operating

com¬

and

have been

beyond

are

due to

our

inflation

service would
the

surely be

and

Because

Western
do its

Company has achieved in

manufacturing have played

job.

duty. One

'•

has

im-

developed to

are

upon

it for

military projects.

System, and look

BELL

TELEPHONE

Bell

ture,

grows

out

■.

upon

77".: 7

integration

System research, manufac¬

operation and supply has been

proved by

many years

of successful

operation.
No other way

proud of this recognition

of the Bell

■■

capabilities that

called

The value of the close

telephone job, the U. S. Gov¬

savings that Western
We

the

Electric has

number of

Electric

But serving the

our
our

ernment

quality less.

For the

Serving the

public is

Helpful in Defense

mies, the price of your telephone

contribution to

of the other.

telephone service.

Without Western Electric econo¬

as a

nation is

control.

panies. The common goal is the
betterment of

projects

nearly so well
both the

GMAC, writes fire, theft and auto
physical damage insurance in the
U. S. and Canada.
G.E.I.C. had
been

for telephone

equipment.

$500,000,000.
"
On April 19, 1960 the company
received

telephone com¬

$4,957,136,000 com¬
pared with $3,963,262,000 on Dec.
31, 1959.
GMAC notes, loans and deben¬
tures outstanding on June 30, 1960
amounted
to
$3,927,477,000
of
which $1,773,036,000 was payable
within one year and $2,154,441,000
subsequent to one year. Subordin¬
ated

of Western
consider this

panies 200,000 different kinds

any

Financing related to auto¬
motive vehicles comprised 99%
ables

you

ready at all times to produce and

prod¬

make.

job when

deliver to the Bell

GMAC finances the distribution
of

get some idea

prices 'decreas¬
ing to the principal amount; un¬

You

Electric's

New

Debs. Offered
managed by Morgan Stanley

whole¬

est and

Acceptance Corp.

cate

the

General Motors

A nationwide

York

Chicago, according to Chester
Laing, president. Mr. Laing

said that Mr. Packard is

Cedar

securities

as¬

sociated with John Nuveen & Co.,
national investment banking firm

Arnold, Wilkens Formed
WOODMERE,

-\T

Crawford

director.

J OlHl JN UV66I1

Company, old¬
largest organization in the
United States dealing in tax free
W. F. Murphy Opens
George A. Percy, Francis W. La
Public (Municipal) Bonds exclu¬
Farge, Edward C. R. Whitcraft,
(Special to The Financial Chronicle)
sively. The New York office is lo¬
Carnot W. Evans, John W. Day¬
>A'
CHIPPEWA FALLS, Wis. —Wil- cated at 25 Broad Street.
ton, Jr., Henry T. Mortimer, Rob¬ lard F.
A veteran ot the financial dis¬
Murphy has opened of¬
ert Grant 3rd, Eugene M.
Geddes, fices at 100 North
Bridge Street trict since 1949 when he joined
Jr., Nelson R. Jesup, C. H. Water- to
engage in a securities business. Estabrook & Co;, Packard more
house tmd Allan; C. Turner; vice
Mr. Murphy was formerly a repre¬ recently has represented
Tucker,
presidents;
David
B.
McElroy, sentative for Loewi & Co. Incor¬ Anthony & R. L. Day and J.

Boatbuilding Corp., Ross A.
Lasley, president has announced.
paper
Mr. Mangold is also a director
its machines.
of Corporate Growth Consultants,
[The vieivs expressed in this article
Inc., and the Business Acquisi¬
do not necessarily at any time coin¬
tions Institute, Inc., which provide
cide with those of the "Chronicle
a
national network of manage¬
They are presented as those of the
vice president, treasurer and
ment consulting services.
author only.]
<
can

retary;
Andrew
F.
Peck, vice
president, assistant treasurer, and

lists, has
its yield

highs

new

value

ferred

American Photocopy, no strang¬
er

(665)

Clark, Dodge to
Form Corporation

stock and

the

.imuj..

The Commercial and Financial Chronicle

Number 5978

192

SYSTEM

would work out

or so

economically for

public and the country.

The Commercial and

(666)

the

creasingly require high-speed rail services in order to
relieve undue congestion on streets and urban high¬

and second, the rail commuter deficit is being in¬
creasingly recognized as a problem somewhat separate
from that of the long-haul rail passenger deficit, and
one
which will require remedial action in the near

ways;

future

President, Southern Railway System

concerned with government
aid to railroad commutation services have been intro¬
duced in the Congress, and individual cities are initiat¬
ing steps to grant some type of assistance to commuter
services which are required in the public interest.
outlook for railroad passenger service as a

the

While

remains unclear, such

whole

factors as increased devel¬

of express services, continued abandonment of
unpatronized services, development of suburban services
on the basis of fair compensation to the carriers, and

opment

possibly greater coordination of services as a result of
mergers of carriers, could in the aggregate alter the
gloomy picture now often painted of the future of the
railroad passenger service.
Mention has been made of railroad consolidation or
mergers.
It has become evident in recent months that
considerable attention is being given to reorganization of

systems into a smaller number of larger sepa¬
companies. This is one of the most significant devel¬

railroad
rate

in the national transportation system at the
time.
Although only one major consolidation
has been completed in recent years, a number involving
opments

present

shifts in the physical pattern of the
of active considera¬
negotiation.
No doubt an increasing number of
plans will be presented to the Interstate Com¬

highly

important

rail industry have reached the stage
tion

merger

Commission for approval.

merce

sum

The railroad industry, barring severe work

up:

stoppages, is likely to benefit in the future from a ris¬
ing level of national product. The industry may, through
technological improvements, development of interchange
traffic with other modes, improved service standards,
assistance

from

bodies in maintaining necessary

public

unprofitable passenger services, and reorganization
of its operations and facilities through consolidation, be
able to maintain or improve its relative competitive posi¬
tion and thus move ahead in volume of business as the
but

level of national economic activity advances.

Syminkton Wayne Corporation

The trend and outlook for

our

business

necessarily follow the pattern of our railroad equip¬
ment business.
Symington Wayne Corporation's sales

not

and earnings were

higher level in the first half of

this year than last year and we ex¬

pect
the

a good second half. However,
general business situation in the

ensuing months naturally will have
bearing

railroad business which

our

represents about 25% of

volume,

our

the

by businessmen who heed Southern's
invitation
to
"Look Ahead — Look

trial developments—new

uncertain

equipment

outlook

for

the

however,

the

optimistic

are

Railroad

the

about

Equipment

the

W. H. Bateman

not

There

has

our

term

outlook,

future

range

enormously. Billions of dollars
industry and plant expansions in the past
still contribute to our region's economic

their needs under

meet

Budd

The

growth and will in the future. We plan and
of that growth.
A few months ago we ordered, at a cost of $3.4 million,
200 cushioned-underframe box cars of- a new design de-;

wide.

one

crease

the

year

64%.

number

has

risen

muter

equipment.

railroads

of this

tions

time factor in the need for strong railroads

this country in a possible

serve

emergency.

and

forward

the

7,540,

the

recent

cars

its correct level

very
as

established

principal

licensees

foreign

for

when

will

benefit

enable

railroads

give the public the full
their ability to deliver low cost, mass trans¬

an in¬
meeting

The

outlook

months

operating
same

EDWARD

for

participate in the rising
In

looking ahead

railroad future and

facturers
our

realistic

operations to

which

our

have

economy

been

think

for

that

the

outlook

1960

have attempted

manner

and

several

and

years

revenues

BUDD, JR.
the

for

hold

railroad business is

feel

that

already

direction ol

problems will be

good

start

has

The

pass.

promising future.

solved

been

have

and

made
"

individual

the

Edward G. Budd, Jr.

moves

mean

the

modern
their

In
:

have; taken

operating
costs;
electronic equipment to
and

freight

schedules

promoting

and

they

yards;

services

such

have

and

steps

and

are

piggyback

Russell L. Dearmont

1959.

to attain

our

Obviously,- passenger operations still leave much to
be desired and there remains plenty of room for im¬

same

level

months

the

realized, operating rev¬
should be slightly
the strictest economy we

are

operating

But with

year.

expenses

higher taxes,

territory served by Missouri Pacific there con¬

tinues to be

spirit of optimism

continued establishment of

ing industries.

„

small in¬

for the year

Through

last

carloadings for the last six

goal of holding
as

us.

expectations of

expect net income to be down.

train
con¬

the

actively

and

excess

hope

the

only be attained by meeting
situation that con¬

our

enues

of meeting
industry
addition
to
modernized
rules is volume business and
What

competitive

crease

reduce

freight

urgent

problem

costs.-

can

the rail-

the

stantly confronts

;

outmoded work

the

they
have
installed
bring automation to

customers

newsservices

tainerized shipping.

standpoint of net
up

the

work

whole

speeded

points

this

the

taken

healthier
•

million

needs

agrees

one

steps

taken

favorably with the

compare

But from the

higher

and

within

their freight business,

roads

been

modernization

and

the

has

going on
whether

vigorous industry.-

basically sound but has had, and still

these

wave

should

the

overhead

ex-

six

compared with 1959.
freight rates offers no

years,

there

industry
not,

has, monumental operating problems to face. We
confidence

time

some

with

•

are

last

solution

has been made, particu-

larly in the past few

great

areas

manu¬

railroads

Co.

the

Increasing

both

for

opinion

some

reorganization

plan and orient

come

progress

For

petroleum

to appraise

and

for

practices to offset higher wages and
payroll taxes which this year will
cost the Missouri Pacific more than

railroads

that

Pacific

need for relief from

toward
.general improvement of the situation.

position to

equipment

think, in due course, will

should

the

DEARMONT

Missouri

period last year.

passenger and freight operations.
■
•
It is quite true that the industry
faces many problems of serious pro-.-

has

improved future railroad situation

profitable business.

from the standpoint of carloadings and

general
encouraging at the present time than it has been

and

our

in these

operations

eliminated, which must,

are

sound arid

the

President, The Budd Company
I

long-established

selling facilities for

industrial products and

trans¬

regula¬

portation and to enter other fields of transportation to
offer shippers a "one-package" transportation service.

Europe

equipment.

have

and

President, Missouri Pacific Railroad

our

Division

Symington

railroad

markets

manufacturing and
and

our

rules

future, the industry will find

near

RUSSELL L.

help strengthen its railroads now simply
capacities to the fullest. Such use will:
fair competitive conditions are established

in service.

growing outlets

where

com¬

national

our

obsolete

can

America

when

unequal taxation

done in

periencing grave financial difficul¬
ties, but nevertheless, a great deal

look

seeking

the backbone of

are

portation system

aware¬

our

portion

rapid transit and

actively

are

worth of

Stores Committee in Chicago that by 1970 there will be

Central

of business in the manufacture of

:.:-v

recently Southern placed orders for $5.3 million

of the American Association of Railroads Purchases and

65,000 to 85,000 special piggyback

will bring

and
are confident that this business. will increase.
equipment to set up a microwave and two-way
It-has become obvious to more people in prominent
radio communications system to add even greater safety
and dependability to rail operation along the main line y positions in government, industy and finance and othkr
fields that the industrial economy of this nation cannot
from Washington, D. C., to Atlanta, Ga.
On completion
continue to grow and prosper without a balanced system
next year, this will replace Southern's existing telegraph
of transport for goods and people in which the best
and telephone pole lines along the 637-mile route.
of each method
Both these actions ;give evidence of Southern's deter¬
the private automobile, the trucl*,
mination to'maintain its strength to serve a growing
bus, airplane ad water carrier—is utilized for the better¬
ment of the whole.
South. But they also serve to underline the fact that it ■
'
takes time as well as money to build strength in a rail¬
The
More

income,

in service in 1958.

cars

predicted at

was

long

Company has designed and developed a
of modern, lightweight, stainless steel

variety

„

conditions that

fair return to the railroads.'

health and

Division.

only 4,590 piggyback

were

planning,

acquisition of modern, more efficient equipment and
capital improvements. Metropolitan com¬
munities may contract for the level of service necessary

build in terms

encouraging

cooperative

and

financial plans must and will be established for

to make other

expanded

decades

two

come

The growing piggyback
outlook for the equipment
manufacturer such as our Symington
division which
supplies trucks, couplers and yokes for this market.
service

has

worth of new

by themselves.

integrated

the

producer of manufactured goods and as a valu¬
for products of all kinds, the

South

do the job

range

Through

consumer" market

able

that

near

longer

state

spent or taxed away. Last year's traffic is a dead statistic;
But
last year's, industrial
development is this year's
bread and butter for a railroad and for the territory it

America

has

uncertain

and Federal Government must shoulder a
responsibility in the task of upgrading of
commuter services, just as they do in the provision of
other essential community services. The railroads can¬
pal,

serves.

center city congestion.

to be widespread agreement that munici¬

seems

measure

by using their

backlogs have
been lowered. If there is not some improvement in this
situation reasonably soon, we will be obliged to adjust
our production level downward somewhat.
contrast

period last year.

same

There

and

highways

traffic-choked

industrial projects in

the fewer

than

that

major cities depends on attracting
rails to get from their homes to

our

been
lagging in the past few weeks, and

the- future welfare of
people back to
the
their jobs and
back
again.
Rail services, supplemented by private
automobiles and buses as feeders, are the only solution
opinion

expert

unanimous

promise of more

Such an
emergency could be on us with terrible swiftness—and
railroads must be strong when -it comes. There will not
be time to develop strength afterward.

specialized equipment and
volume on normal mainte¬
requirements. Order for stand¬

equipment,

Harry A. DeButts

Frankly, I would much rather point out that industrial
development is cumulative, not comparative.
Last year's revenues are, for the most part,, already

nance

rapid transit services in the growing metropolitan areas.
There is a mounting mass of evidence and practically

$155

during the first six months of 1959. But then some pessi¬
mist would note that 1960's projects represent a smaller

average

ard

excess

them.

greatest significance for the future of the railroads,
however, is the demand for improved commuter and

6,800 new jobs. As an optimist, perhaps I should
say that this is a substantially larger number of indus^
trial developments in our territory than were recorded

ness

last half of the year we expect some

gain

million and hold the

investment

ac¬

than

total

room

operated at a profit on every railroad

have

cars

that has acquired

plants, new
additions to

represent

They

investment

total

These

Increasing international tensions sharpen

the

For

manufacturer.

major

and

plants.

existing

private

which provide

sleepers

commodations at coach fares plus a small room charge.

Along Southern Railway System
lines
during the first:- six months
of 1960 there have been 172 indus^
warehouses

coach

Budd

south."

road.

picture is not too clear. The redecline in car loadings affecting
the industry, together with other un¬
usual industry problems contributes
the

being given our territory

confidence

cen;

vote of

the continuing

however,

—

year-end results.

our

shown that with wares
reasonably competitive level with other
methods of transportation and the provision of modern,
comfortable and; attractive equipment, there is a sub¬
stantial core of people who want to travel by rail. As
proof of this, I point to the successful record of the
adjusted to

optimism,

Southern finds cause for

this, experience has

Beyond

time."
.

soon.

whole does

steel

1959's

and

temporarily "marking

are

passenger train cars, easier and cheaper to maintain
abetjf£s$; costly to operate, and I think there will be a
gfSowing demand for this equipment." jOur Railway Diviveloped jointly by Southern's technicals taff -and*a team
of university scientists. Deliveries ate expected to -begin f sioh^is already doing a substantially increased volume

•

W H- BATEMAN
President of

recession

strike

railroads have succeeded in cutting

away

recovering from the effects of

1958's

great deal of obsolete and unprofitable routes
and services. Beginning to emerge in sharper focus are
a number of areas where railroad service
is .by far the
most practical and efficient means of travel. These runs
will continue to be operated profitably.

puzzle to forecasters. There are numerous straws in
the wind, but they appear to be blowing in all directions
at once. The most reasonable estimate seems to be that
after

in this field of service, I think
optimistic toward the

be much more

Since the war, the

Several legislative proposals

Thursday, August 18, 1960

even

industry can

future.

halfway mark of 1960 presents

America's economy at the

metropolitan areas.

number of individual

provement, but

DeBUTTS

HARRY A.

■

Railroad Industry

Authorities View Outlook for the

How Leading
Continued from page 1

Financial Chronicle

These

demonstrated by the

and

new

expansion of exist¬

things make it

necessary

for the

Missouri Pacific to look
beyond 1960 if we are to con¬
tinue to share in the
benefits flowing from the growing
economy.
With

this

mind,

are

*■-.

1960
page 20

proceeding with our
.

Continued on

Volume

Number 5973

192

The Commercial and Financial Chronicle

(667)
:

...

half of the

Business Outlook Clouded

Defense Contracts Accelerated
"There
been

also

Cites inauspicious state of automotive

Emphasizes difficulties in forward planning.

tracts fell

The highly mixed state of business new homes under its mortgageindicators are emphasized by the- guararitee program.
In addition,

amount

Morgan Guaranty Trust Company
of New York City in its August
Survey.
Weighing
the
concur¬
rent constructive and destructive

item

prices

prospects, the leading banking in¬

cating that the flow of funds from

stitution

that

concludes

any

housing

ate.

the

far

done very

nomic
of

received

secondary

rise

the

market,

•

into
the

indi¬

good deal short of the

that

planned.
on

ernment

had

been

Anotner

originally

recent

news

the positive side was the

mortgages revelation

for

institutions
market

that
has

the'Federal
ordered

gov¬

very

marked increase in the volume of

the contracting

rise. highway
quarter."

the Federally aided

program

the

current

together with proceeds of approx¬
imately $4,100,000 from the recent

Puerto Rico Tel.

sale

through a rights offering of
100,000 shares of common stock,

Private Placement
Via Kuhn, Loeb

will be used for the company's
expansion and improvement pro¬
gram initiated in 1959. This pro¬

Puerto Rico Telephone Co., a sub¬
sidiary of International Telephone
& Telegraph
Corp., announced on

gram calls for expenditures for
telephone plant and equipment of
approximately $70,600,000 during

Aug. 16 that it has sold to

the

group

six

1959-1964.

years

institutional investors, through
Kuhn,
Loeb
&
Co.,
$8,000,000

With Pacific Coast Sees.

principal amount of 24-year 6%
sinking fund debentures, series C,
due Aug.
of

(Special to The Financial Chronicle)

LOS

1, 1984 and 40,000 shares

6%%

cumulative
preferred
stock, series A, par value $100
per share.

Pacific

from

debentures

and

the

sale

preferred

Coast

Broxton

The net proceeds to Puerto Rico

Telephone

ANGELES,

has

the

Securities

Street.

been

Mr.

the

Harbison

the
be

reports have continued
mixed

difficult

nature, especially
interpret because the

through its tra¬
quiescence. In-

economy is going

ditional

midyear

terest, of course, centers on con¬
jecture as to what direction
business activity is likely to take
this autumn; but conclusive evi¬
dence

which

forward

base

planning

is
slow
to
come.
A
weighing of the factors now vis¬
ible suggests that, either way, the
line

not

"Sales

were

been

new

the

rate

pace

witness such

result,

achieved

the

same

inventories.

time, used-car sales
sluggish. August

rather

September

are

been

not

particularly

the

Empire Builder
Chances
a

Production
"Thus

Trend

there

Still

Uncertain

cannot

yet be as¬
rapid climb in auto¬
output this autumn. The
of

surance

mobile
is

true

in steel,

the lag
in orders has not yet passed. Some
slight improvement has been re¬
ported in recent weeks, but hardly

Figures

for

are

your own company

single product

your

total line. In

has

as a

our own case, as a

carrying hundreds of thousands of
millions of tons of

"leader"—

service that best advertises

freight,

our

railway
and

passengers

"showcase" is

incomparable train, the Empire Builder.

for

enough to dispel all uneasiness in
the industry. Information on totalorder experience in manufactur¬
ing is not yet available beyond
June.

incomparable

auspi¬

cious."

same

qbest foot forward"...

months

the

normally looked to for the great¬
est inventory cuts, but the prelude
has

Great Northern's

earlier,

in 1960
shortfall. As a

spectacular progress was
in
working down the

remained
and

had

month

high level of dealers'
At

than

year

marking the first
to

during July

cars

Sales fell slightly

hoped for.

behind

especially steep.

slower

fall

the

movement

likely to

that

month

This sleek streamliner—between

Chicago and

Seattle, Portland—is the natural choice of
business executives who

are

rediscovering

happy fact of travel: frequently, it

pays not

hurry. It is the choice of pleasure travelers who
would rather

someone

else "take the wheel"

showed orders still running below

while

deliveries, producing an attrition
backlogs.
It was the seventh

relaxation. It is the choice of vacationers—

consecutive month in which back¬

bound for the nation's most

logs dwindled. These considera¬
tions, together with the continued
weak performance of many "leadi ing"

indicators, are the principal
question marks overhanging the
economy at this time.
"There are,

however, a number
of important offsets. The strength
that was evident in personal in¬
and

come

the

end

over-all

retail

the first half

sales

appears

to have carried over into the sum¬

period. Except for the dis¬
appointment noted in automobiles
and some sluggishness in
appli¬

mer

sales of most items seem to
doing well. The Federal Re¬
serve Board reported that its sea¬
ances,

sonally adjusted index of depart¬
sales rose sharply in

they enjoy carefree hours of fun, rest and
thrilling

■;

scenery.

But most

important, Great Northern's Empire

Builder is

magnificent example of how

modern, service-minded railway attends the
needs of communities
and

its line. For the

"spit

polish" needed to maintain this luxury train

carries

over

into Great Northern

freight services.

Thus, with utmost efficiency and dependability,
able to transport ores,

we are

grains and lumber

from the northern tier of states—and return to
this

region the manufactured goods of other

Whether you are

traveling

areas.

shippiilg, learn

what makes Great Northern great. Your local
ticket

freight agent will be glad to help. V

ment-store

July. The level achieved was the
highest ever, except for the un¬
usually strong showing in April
of this year, and the performance
was especially gratifying in view
of the unseasonably cool weather
over

many

Direct passenger travel

General

been expected to
purchases of summer goods.

"Also

cent

encouraging has been re¬
that construction

evidence

apprecitime this
year, and the Veterans Adminis¬
tration also reported a significant
rise in requests for appraisals of

VANCOUVER. B. C.

HNEW

KUINCHAM^

■

WESTMINSTER. 8. C.
■

^ANACQRTES

•

activity is beginning to strengthen.
The FHA reported that mortgageinsurance
applications for pro¬

Freight Traffic Manager,
Railway,

Great Northern

St. Paul 1, Minnesota

that might have
slow

inquiries to:

P. G. Holmes, Passenger Traffic
Manager;
freight inquiries to G. D. Johnson,

regions of the country

EVERETT Q^^JVENATC
SEATTLE

posed new homes rose
ably in June for the first

Offices in principal cities of U.S. and Canada

formerly

Henderson.

Survey.

the

says

who

investment busi¬

little to clarify the eco¬
for the latter part

year

Co., 1054

Hodson

for many years was

ness

with

stock,

Calif.—Douglass

Hodson has ioined the staff of

outlook

"Business
to

reported

These data suggest that the second

period has

summer

the

investing

change in the fall will be moder¬
"So

FHA

have

This is hardly surprising, since in
the fiscal year which ended in
June the total placement of con¬

and, on the other hand, stepped up defense spending.

the

appears

acceleration in the place¬
ment of defense contracts
recently.

Large New York City banking institution notes mixed picture revealed
by current business reports.

well witness

may

home-building activ¬

ity."

Morgan Guaranty Holds
inventories;

yeaf

revival in

The Commercial and Financial Chronicle

(668)

Continued from page

Thursday, August 18, 1960

We expect to complete this
28-mile extension to the new iron ore de¬
velopment at Pea Ridge in Southeast Missouri. When
in full operation, the mine is expected to produce ap¬
proximately 100 cars of new business a day.

modernization
year

program.

new

provide for faster and more economical operation
automatic retarder yard is being constructed at
and a similar yard is planned
for McGehee, Ark. While neither yard will be as large
as the one completed last year in Kansas City, they are
expected to result in savings proportionate to the $2,700,000 realized per year at Kansas City.
To

new

North Little Rock, Ark.,

freight car supply has been generally adequate
shipper needs.
This year, 3,255 freight cars
will receive heavy and general repairs and construction
Our

meet

proceeding

1960 program of 1,088 new cars,
bearings.

our

all equipped with roller
order

operating

insofar

the
new

number of older diesel locomotives
to maintain and operate

had become expensive

been upgraded

HALES

President, Nickel Plate Road

freight train schedules and over-all service

concerned,

which

from

come

flexibility

and

opportunity to improve our competitive position

every

have

reduce mainte¬

and

that would

and to hold and take advantage of

model locomotives,

are

costs

reliability

efficiency,

greater

the savings

realize

and

nance

and modernized—12 in 1959

Nickel Plate

continuing its improvement program in
requirements and to obtain

order to meet future service

additional

and

traffic.

During

1960,

diesel

this year's program.

locomotives;

150

highway
Service; and

trailers for Piggy-Back
"

The

company

is continuing its policy of marketing

rail service to meet competitive conditions.
rail

operation,

continues to
will

loads

piggyback,

develop.
about

handle

of convoy

higher

18,000 last

in the
doing

Eagle trains

are

Coaches

Texas

filled

90%

year,

and

4,000

flat

car

ment,

and

fWf

period

about

were

last

year.

Our

banner business with Slumber
Thrift-T-Sleepers

Colorado

of capacity.

our

forces

own

converting

are

•jytt^SHr .si.

100 old box cars into flat cars for
Piggy-Back Service and building 14
double-deck "basket cars" to handle
small forgings for automobiles.

Wim,

be the fastest growing part of Nickel

1
j

&HF'***«#

same

equipped with damage-free de-

are

Piggy-Back

ttk J* w
Ik Hfk
jy fjMg 5
HHHiyiBMHI

particularly about the economic devel¬

j;:

continues

i960, loaded trailers increased approximately 75% during the same
period. Gross revenues during the

FelixS. Hales
.

Service

Plate's business. Despite a decline of
about 3% in the over-all carloadings
during the first seven months of

Missouri Pacific is optimistic about the future of the
rail industry and

vices, have been acquired and placed
in service. In addition to this equip-

We estimate the Missouri Pacific

automobiles.

than

500 all-steel box cars, 325 of which

ll |

it is generally described,

Passenger revenues in the first six months

1
[

24,000 loads of general commodities,

with

compared

Our truck-

first, half of 1960 aggregate $77,181,901}, .an£- net income
was $6,159,000, or $1.47 per share, which may be com¬

opment of the West-Southwest territory it services.

pared with gross revenues of $79,094,000 and net income
of

$7,143,000,

$1.71

per

of 1959. We expect some

first half

during the

pick-up in business during the

balance of the year and believe 1960 will be a good year
for

Road.

our

railroads

The

are

'vls /r"-

..
T- \
'; vvAyT
tremendous challenge.
>

faced with

financial position, they must devise
more efficiently and to provide everbetter service to customers.
improve their
means to operate

Operating costs of the railroads
of

reason

increases

are

this

Railroad Retirement

year

Unem¬

and

ployment Insurance Taxes voted last year by the Con¬
increases. For the Nickel Plate, the
payroll taxes total about $100,000 a month, and
the wage increases are expected to approximate $1,-

gress and new wage

added

eagle

500,000

annual basis.

railroads

The

have improved freight schedules; pro¬
specialized equipment and services; and have
adjusted many rates, including new incentive rates on
some commodities that make
possible savings to shippers
for heavier loading of cars.

vided

Travel

We
of

the

the Nickel Plate

railroad

optimistic about the future
and, particularly, the Nickel

are

industry

Plate.

TrAY

JOSEPH

LANTERMAN

President, American Steel Foundries

please

Our

company

first

nine

amounted to
nine

had

months

increased
of

its

sales

1960

and

fiscal

$5,917,947 equal to $2.02
ended
June
30,
1960,

income

the

Net income

year.

share in the
compared with

per

$4,953,049
in

equal to $1.89 per share
corresponding period a year
Sales- in the nine- months in-l:

the

ago.

creased to

Earnings in the third fiscal
ter

ended

June

this

$2,356,473 or 81 cents
pared with $2,773,234

quar-

year

Lunch

W§ ;-e&A

were

com-

$1.05

m
m

§§§1®

However,

they were higher
$2,019,012 in the second fiscal quarter and the $1,542,462 in the

WiA, 'Jf %. Ji

per

share in the third fiscal quarter last
year.

$91,953,439 from $82,478,-

JmL

than the

Dinner

only $1—

Breakfast 75*

first fiscal quarter of this year.

H Bk

H^Hk

The
the

record-breaking
earnings
in
third quarter last year were favor-

|
J«

ably

A COMPLETE AND DELICIOUS PIPING-HOT MEAL
SERVED AT YOUR COACH SEAT ON

TH^EAGLES!

affected by the high level of
Joseph B. Lantermau
activity resulting from the
; •'* •'
inventory buildup in anticipation of the strike in the
basic steel industry. '
business

Our

Missouri Pacific also features:

everyday Family Fare

Plan; low-cost Sleeper Service; economical coach fares*

Complimentary Coffee
Coaches!

10 AM and 3 PM; and Dome

company

attributes

about

50%

its

sales to

railroad products. As a result, our gains in income and
sales in the first nine months were held back somewhat
rail

ordering failed to reach the high levels

earlier this year.

predicted

ASF's principal railroad products are wheels, side
frames, bolsters, brake beams, couplers, yokes, springs,
<

ana

brakes.

influence

Orders for
the

new

freight

cars,

important

products, were high in
January this year,, but declined in February and again
in March as hopes for a boom
year faded.
American
on

sales

these

Railway
six

figures

Institute

Car

1960

months

ordered

Number 5978

192

Volume

only 20,625

The Commercial and Financial Chronicle

show that in the
new freight cars

nationally, down from 33,651

^ooa;

first
were

a year ago.

indication of an immediate
railroads. We believe there
may be an upswing in the last two or three months of
the 1960 calendar year as railroads anticipate 1961 needs,
but a good share of this won't be reflected in earnings
At present, - there is no
increase in ordering by the

1961, quarter.

until the March,

j While early predictions were for a 70,000 freight car

year; in/l 960, ^estimates
trimmed

ordering

have

now

been

50,000 or lower. This is down from

about

56,414 in 1959..
The nation's railroad

equipment makers are also faced

out of car
placed.' American
.Railway Car Institute figures reveal the backlog of
freight cars nationally has slipped to 29,555 on July 1,
declining backlogs as freight cars roll

with

than

shops .faster

down from 43,870
•

ASF's

orders

new

Jan. 1.
position

sales

railroad

are

has

aided

been

steady market for products used for repair or replace¬
ment/ . The need for repair parts continues even when
demand for

equipment slackens.

new

•

earnings in our fiscal year ending Sept. 30,
1960, will be equal to or better than the $7,168,000
earned in fiscal 1959. Sales of our non-railroad product
'We expect

.lines

contributing

are

steady

this

earnings picture.

These product

lines include steel castings for industrial
hydraulic machinery and boring mills, roller chains
sprockets, cast iron pressure pipe, precision metal-

use,

and

i;xw;

working machine tools, and the wrapping and coating
of steel pipe for the oil and gas industries.
■ASF's capital expenditures this year will be about
$9 million, up slightly from $8.1 million in 1959. Projects
completed recently were a cast iron pipe plant at
Council
Bluffs, Iowa; and a- research laboratory in

&£&>*'■

t-tW'tvi

':'

Bensenville,.-• 111. \* Our Indiana Harbor plant was con¬
verted this year from a green sand to a shell molding
facility in order to produce higher quality castings for
railroad
and
general industrial use.
Future projects
include a steel wheel plant in Bertsenville, and a plant
in

'
*

VIM.6.AUV

-•

/
A

Youngstown, Ohio, to be used for the plastic coating
/
'
/ '
'
\

of steel pipe.

':1:YYVs £VV
"}

E. C. R. LASHER

President, North American Car Corporation

While the

economy did not perform with pre¬
during the first half of-the year, private

'general

dicted ..vigor
car

lines continued to experience an upswing in business.

thrust should continue through

This forward

the second

the-year/ / •/:///'Y-/'!//;' /Y; // ^ Yy'Y ^•

half of
The ;

principal

counter-trend

this

for

reason

movement of

our

in-'

believe, is the growing
attention that industry is giving to
logistics. Logistics is the science of
dustry,

managing
materials,
getting
the
goods from where they are produced
to where
they are needed at the
right time, in the right quantities,
and at the lowest possible cost.
It
is one of the few remaining areas
in
business
that
offers
promising
possibilities
for
cost
cutting
and
earnings improvement.
;
With specialized transportation
such a vital factor in the logistics

Ship and
' JiMP

v-;

travel

HHKjk.
Hr

Santa Fe

Ce„. E. C. R. Lasher

nies

providing these services should continue to grow
in spite of marginal fluctuations in the general economy.

top of this, you have new technology cropping up
each year in the transportation industry requiring new
equipment for both shippers and the nation's railroads
We have sought to offer such new equipment for the
railroads through a privately-financed specialized car
pool. While it has been in operation only eight months,
it has met with considerable approval among major
roads and its growth potential, in our opinion, is con¬
siderable.^

ROBERT

MACFARLANE

President, Northern Pacific Railway
As this is written in late July, it appears that Northern
Pacific's I960 earnings will be reasonably satisfactory,

although it is unlikely they will equal 1959 net income,
which was the highest in 16 years.
Reduced traffic in
forest products) grain and manufac¬
tures

miscellaneous

and

items

was

'largely responsible for a drop in
earnings for the first six months of
1960 compared with the. like period
of 1959, when they were the highest for any comparable period since
1920.

$7,547,465, equal to $1.26

stock,

equal

18/

||o
|||v |
11

'/It Jii

Net for the first six months of 1960
was

fiSMMSHBMHi

JIB

Pp,

compared with $9,364,612,
for the first half of

to "$1.57

1959.

Although
extreme

were

crops

heat

and

dry

damaged by
weather in

parts of Northern Pacific territory in
HHHMMhHHB
July, prospects for harvest continue
kooen s. Mac.ariane
gen^rallv good.
Volume of grain
traffic this fall will depend to a considerable extent
on

how much of the new crop

is stored

in local elevators, where storage space
If

the

widely

materializes

YY.Z/--

predicted

the

in
.

last
^

upturn

the farms and

is ample.
general

business

half of the year, Northern

Pa-

Continued on page 22

picture, it only follows that compa¬

...

the

longest

railroad in the
U.S. A...

Serving the West
and Southwest

SS&.

The
22

Continued from page
cific's

volume

Northern

and

products and manufactures

of forest

1960

Pacific's

accordingly.

non-rail

income,

principally

oil, timber, real estate rentals and Burlington divi¬
dends, is expected to approximate the 1959 figures.
Production from Northern Pacific oil wells this year

from

expected

be slightly less than

in 1959, and with

oil revenues in 1960 are ex¬
pected to be moderately lower than in 1959.
Northern Pacific, in common with all U. S. railroads,
is faced with increased operating costs as a result of
new wage agreements with the unions.
A 2% increase
effective July 1, 1960 and another 2% rise on March 1,
1961, will cost the industry an estimated total of nearly
$200,000,000 annually.
.
■:
A bright spot in the industry's traffic picture is the
perfectly amazing growth in the volume of trailer-onfreight-car tonnage.
On the Northern Pacific, piggy¬
back loadings increased 41% in the first 6 months of
1960 over the corresponding period in 1959. To meet its
rapidly expanding piggy-back business, Northern Pacific
recently joined Trailer Train Company, national car
leasing agency which supplies its parent companies with
flat cars for TOFC service. Beginning in June, NP began
hauling in transcontinental service highway trailer loads
oil prices down, our

new

automobiles

flat

Our company has been

cars.

handling this type of business
since

the North Pacific Coast

August, 1959.

The plan announced

July 16 to unify and operate as a

$40,000,000 annually, before taxes.

It is antici¬
be a

after

approval by the Interstate Commerce Commission.
E.

MARSH

ritory.
harvest

1959.

about 2%

Railroad

Retirement

and

Unem¬

ployment Taxes, resulted in net in¬
come

for the first six months of 1960

lagging 21.9% behind 1959/
Traffic

handled

the

Santa

otner costs

axiet

our

original expectations

in cer¬

commodities, particularly build¬
ing
materials v and
manufactured
products associated with the con¬
struction industry.
The 1960 winter
we

exceeded

serve

appears
on

harvest

the

states

expectations and

However, because of

uie

J ;

President,

:v,'V

MURPHY

Burlington Lines

lation, relief from discriminatory taxation, and imposi¬
tion of user charges on competitors who derive an un¬

Quincy Railroad's results
level of the
corresponding period last year, and based on present
business outlook the results for the year will likely fall
a little short of the 1959 performance
'. !':
/'%'■'/■
The

Burlington

Chicago,

marked

pickup

develops.

nues

for

the

1960 were below the

half of

the first

for

iMr

operating

and
first

six

mem ins

-"'m

reve-

other businesses do.

were

further increased effective

with

the

new

contracts

Ernest S. Marsh

cold and wet spring

E. PERLMAN

ALFRED

Our entire

terialized.
not

regained the levels it achieved prior to 1959's pro¬

current steel output run¬

our

capacity and/ the
V. "",/■ /■
//
aufpmotiye industry j:acing! a,;rather;. "t ■
HHHH far,,,Mow

ning

1960 model" carry-over,
the,'^H///^
prospects for any. significant/ im^
provement in the" last half of the

large
Harry c.Murphy

•

HI^1

^HK.^HMHR
■Hv*pHHI

period of growth and expansion. I
am
confident, too, that the Central
will share in this growth.
For the last five years, the Central

HRRp'
■■■ilMMBBI

1960's

the

that

believe

undergoing

been

rebuilding

expended more

have

will

complete

■ a

Alfred E. Perlman

program.
We
than $300,000,000 in

•plant, equipment and facilities to meet
and boom periods that may lie ahead.

the

way

for shippers along the Dixie line

L & N's

$ll>/2 million.modernization and enlargement program set for the freight

Kentucky, just

across

for

freight traffic

the Cincinnati Division, and

save an

estimated $2,000,000

equipment

hart and Youngstown

pace

...

and

now

improvement program.
yards—at Buffalo, Elk¬

at Indianapolis;

shipping methods, such as our Flexi-Van

a year

installed

rail-highway

containers.
This

another step forward in keeping
/

plant and other facilities are now paying us

new

service

with the growing South, k

our

pushbutton traffic controls over 1,500 miles of main line
track; mechanized our maintenance of equipment and
maintenance-of-way
operations;
and
developed new

•

dividends

during the post-war period

We've built four new electronic

operating costs. It is the fifth major terminal reconstruction undertaken by L & N
•

plant

sole product, our

railroad's

must

That has been our aim

•

the river from Cincinnati, wi

improve the movement of coal from East Kentucky, provide additional capacity

improving our
both competitive

produce transportation for our
shippers that is fast and dependable—and for the lowest
cost possible.
/
•;/ ■/

classification yard at DeCoursey,

service

Since

and

economy

'jgHHpt

York
remains confident about the

prospects for the decade ahead. Irrespective of these minor- disloca-1
tions and slowdowns in our economy,

* JigR

On the other hand;, the New

Central

production estimates indicate good pros¬
larger-than-average grain harvest in Bur¬
lington territory, although much of the new crop may go
into expanded storage facilities in the growing areas.
Grain carloadings, down 29% in the first half, should
show some improvement, however. Loadings of other
important commodities such as coal, lumber, petroleum,

not favorable.

are

year

physical

major boost in speed and

■■

economy,

longed steel strike. With

has

1960 obviously has not ma¬
generally speaking, has

boom for

anticipated

The

■,

•'

Railroad

President, New York Central

July

under

tms

approximately 7.2% low¬
er than a year earlier, while net in¬
come
decreased
by
about
12.9%/
Among the principal reasons for the
decline in earnings were the reduced
volume
of
traffic,
particularly, in
highly rated commodities, and rising
labor costs resulting from
cost-ofliving increases in rates of pay, and
higher payroll-taxes.
Wage rates
year

justified advantage from the use of facilities provided
at the taxpayers' expense/: .Some laudable recommenda¬
tions were contained in the Commerce Department's
transportation report earlier this year, but we still face
the task of convincing Congress that remedial legislation
is urgently needed to enable the railroads to operate as

freight

•

industry for decades has been burdened

The railroad

by unfair treatment on all levels of government, and the
situation becomes more serious with each passing year.
There was never a greater need for more equitable regu¬

Recent crop

to be the second largest crop

record.

.......

pects for

that

City,

River
at Quincy, Illinois, as well as the acquisition of 400 new
highway trailers. Total capital expenditures in 1960 will
exceed $20,000,000.
' '
•
-

unions, and thus
labor ; ' •>/ ^ / V/ /' ': ;y>
costs will again rise substantially unless .offsetting sav¬
ings can be effected through changes in working rules.

tain

wheat

pletion of a new freight house at North Kansas
Missouri, and a new bridge across the Mississippi

million 1960 capital

of doing business.

operating

during the first six months fell be¬
low

Other

cars

•

carried over from last year s program. All
will be equipped with roller bearings.
important improvements this year include com¬

the new

•

were

Carloadings

At the same time operating expenses
higher than in the 1959 period, reflecting
an
increase in wage rates and the
carrying out of planned maintenance
programs.
These factors, combined
with the sharp increase in the rates
period

were

Free .box

having been

Railway System
Fe's total operating revenues during the first six
months of
1960 were
2.9%
below the corresponding

the

while

improvement / Passenger revenues so far this year are running ahead
of the 1959 pace, aided by large group movements to
program is progressing on schedule.
All of the 60 new
the Shrine convention and Boy Scout Jamboree in Colo¬
2,400 HP. diesel units have been received and. placed
in
rado.
Creative traffic-building efforts such as student
service, and the important northern Arizona line
educational tours, week-end excursions, Iron ■ Horse
change on our transcontinental route is expected to be
completed before the end of the year. These and other i steam trips and theatre tours continue to attract addimodernization projects should prove important factors
tional patronage.
The Vista-Dome California Zephyr
in the continuing struggle to improve the efficiency of
and the VistarDome Denver Zephyr currently are bene¬
fitting from a heavy volume of summer vacation travel.
operations and to offset the upward spiral of wage rates
The Santa Fe's $100

unless

Santa

acquired. Of the new cars, 100 large cov¬
and 50 Airslide cars have been purchased,
railroad's shops are building 100 Damagecars and 500 open-top hoppers, the latter cars

will be

ered hoppers

quite possible that the sorghum crop in states served by
the Santa Fe may equal the record volume of 590 million
■

receive

cars

remain adequate

More than 1,500 freight cars
general repairs this year, and /50 new

shippers' needs.-

meet

are

was

is expected to

freight car supply

The

The grain sorghum acreage planted for fail
is slightly below the acreage planted last year,
continued favorable growing conditions it is

bushels harvested in 1958.

mill products will

buL with

traffic

President, The Atchison, Topeka and Santa Fe

should maintain

advance ordering to

depend upon the
the second half this year.
handled in trailer-on-flatabout 25% in the first six months and
that rate of increase for the year as a

service rose

car

build up inventories
in anticipation of the steel strike. The agricultural out¬
look is generally excellent
throughout the Southwest
and has been aided by recent rains in much of the ter¬

bolstered

integrated system the Northern Pacific, Great
Northern, Burlington and Spokane, Portland & Seattle
railways would effect eventual operating savings esti¬
pated that integration of the four lines would
gradual procedure, requiring at least five years

of 1959

months

early

the

during

traffic

because

single

mated at

1960

Thursday, August 18,

general trend of business in
The number of loaded trailers

much of the

. . .

and steel

iron

and

usual and
grain that would normally have been moved
in the month of June was not handled until July.
While there is a degree of uncertainty in the outlook
for the balance of 1.960, we anticipate that there will
be some improvement over
the present level of our
business.
It is also expected that the comparisons with
year ago figures during the second half will be more
favorable than they have been during the first half,
three weeks later than

the harvest was two to

miscellaneous items should increase

crude

Chronicle

Commercial and Financial

(670)

enabling

for

provide

that

customers

our

new

better

and

have

would

im-

been

possible only a few months ago.
As

example,

this

earlier

introduced Super-Van Service
less-than-24-hour freight
These all-con¬

year

provide

service between Chicago and New York.

tainer trains cover that 960-mile route at passenger

speeds, and the demand for the service is
We

inaugurated

St.

new

Louis to

train

growing daily.

New York

City

fastest
into Manhattan. At
schedule, the train

freight train, the So'Westerner, that provides the
raU

service

fmst
now

mum

uumi

ooiin,

i»F»m
•

only
and

The DIXIE LINE

that key

gateway
three-day-a-week
a

daily basis, again because of

shipper

use.

Similarly, we've lopped as much as five hours off our
freight schedules between Chicago-New York and Bos¬
ton and many intermediate cities and put in a new Pittsburgh-Detroit overnight freight train that has brought
considerable

LOUISVILLE
& NASHVILLE
RAILROAD

operates

demand
■imtoTr

from

new

business to

in that area.

improvements—actively and
aggressively marketed, promoted and "sold"—will carve
for the Central a larger share of the traffic market. And
emphasis during the balance of this year will be on the
These

and

other

service

ee'ling job.
Another
been

thus, in
In

"pay-off" of

marked
our

1959

our

increase

ability to bring

our

has
and,
to net income.

modernization program
our
overall efficiency
more

earnings totalled

down

slightly over

$3,000,000

Volume

while
net

5978

Number

192

The Commercial and Financial Chronicle

months of this year,

six

have returned to

outlook is not as favor¬
hope for, I believe Central's invest¬

While the short-term business
able

could

one

(671)

vice

Pierce, Carrison

$6,000,000.

over

presidents; Paul T. Nielsen,

Edward

To Be NYSE Firm

Wulbern

Joseph Mellen Adds

Charles

and

(Special to The Financial Chronicle)

Thompson, assistant vice pre-

CLEVELAND, Ohio—Jack

idents.

ment in

improvements and rehabilitation will enable us
to meet this challenge ate well as anyone in the trans¬

Pierce,
JACKSONVILLE, Fla.—The Carrison, Wulbern Inc., of Jack¬

portation industry. It will also, I know, assure our par¬
ticipation in the growth that this decade will bring to

Pierce, Carrison,
poration will be

Wulbern

Union

the country.

August

will

B.
staff

Backer has been added to the

All

member

WILLIAM J. QUINN

impact of the steel strike during the latter

Unlike

the

railroads

continued
work

that

results

several

months

George

Pierce

for

stoppage

formed

New

become

York

associated

and

Carrison

Joseph,

Hayden, Stone & Co.
OAKS,

has

Williams,

Midwest

Stock

Ex¬

With F. I. du Pont
1

(Special to The Financial Chronicle)

Hartman

the

& Miller, Inc.,
Building, mem¬

change.

Henry Hartman Joins

SHERMAN

Mellen

Commerce

bers

Stock

and

Frederick

with

Tampa.

(Special to The Financial Chronicle)

Calif.—Henry BOSTON, Mass.—Philip E. Chew
associated

become

Edward with
Hayden, Stone
B. Wulbern, senior vice presidents;
Ventura Boulevard.
H. S. Carpenter, secretary-treas¬
formerly conducted
urer; Louis M. Saxton, Robert J. vestment
business

& Co., 14221
Hartman

Mr.

in¬

his

own

Sherman

has become associated with Fran¬
cis

Street.

Pont

Schirmer,

was

Co., 80

Atherton

Harris, Upham & Co.

Oaks.

Federal
with

formerly

;

Co." and
>

ended,

after

,H.

industries,
feel the

other

some

and
the

Clyde C. Pierce, who will be pres¬
ident.
Other
officers
will
be

part of 1959 affected many areas of industrial and com¬
mercial activity, which had a .depressing effect over
broad areas of railroad freight traf¬
fic.

sonville

Exchange with the acquisition of
an
Exchange
membership
by

President, Chicago, Milwaukee, St. Paul & Pacific RR.
The adverse

25th

Cor¬
as
of

are

fact, and for whatever
be attributed to, in¬
dustrial production thus far in 1960
has continued well below the levels
matter

reasons

may

the

anticipated earlier in
This/condition has

year.

closely

been

.•

railroads, es¬
pecially in view of recent wage in¬
watched

are

interested...

you

in the industry. The railroad

creases

with.:the principal exception
non-operating group, have

craft,
of

all' the

the

William J. Quinn

effective

increa:es

awarded

been

while an agree¬
ment has not yet been reached with the latter group, it
is expected that it will be shortly.
This added cost of
operation places a heavy burden on railroad manage¬
July

and

1960,

ments for the balance of this year

DEVELOPED

and for the future.

however, reasons for optimism..
On the
Milwaukee Road we expect the second half of 1960 to
There

are,

FULLY

•

improvement over both the first half of the year :
and the second half of 1959.
Generally speaking, excel-

show

in prospect for the grain producing areas
The movement of grain from

lent crops are

of the railroad this year.

•

upturn in
the Milwaukee's revenues, began in mid-July and is
currently showing promise of being much heavier than
''
that experienced last year.
Releases of government held
grain are likewise on the increase. Grain loadings are
of such importance to the over-all revenues of the Mil¬
waukee Rjpad, and to the prosperity of much of the ter- ^.
ritory it -serves, that we are at present anticipating: £4#
substantial improvement in otir position ahd a much ;
these

traditionally

which

areas,

marks

favorable result for the 12 months than net earn¬

ings to date indicate..

V/;. '

•

;

„

RAMSEY

GLEN

Vice-President, General Manager, Rectifier-Capacitor
Division, Fansteel Metallurgical Corporation
Perhaps

other industry in this country is faced with

frequent serious challenges as is the
Costs, rates, legislation detrimental to
profitable rail operations as well as storm clouds in
other
countries
are ). a
continual
; . - - - - -

many , and as
railroad industry.
as

source

harassment

railroad

The.. "outside",
marvel
at; the
way- the
industry'
meets every challenge head-on and»
always
seems" to
emerge
even
stronger.than before. This propensity
for rapid recovery speaks for rail-,
road management and for the rail¬
road spirit.
/
Last year, for instance, notwith¬
standing the impact of the lengthy
steel strike, purchases by railroads
of
materials
and
supplies
scaled
about $300 million over 1958. This,
despite the staggering loss of reve¬
people.; Yet,

mires

the

from

nue

and

mills.

UNION PACIFIC
--W

omy

areas

industry is at

life.

economic

its

needs

developed

fully

territory it

Glen Ramsey

These districts
and

to its credit.

are

■

state western

The railroad

: •: •'''

number

districts available in the eleven-

well, the railroad in¬
dustry proved that its operations are healthy—diversifi¬
cation and continuing programs of efficiency and econ¬
other

'■

important crossroad in
of confidence from

vote

industry depending directly or indirectly upon
transportation, for no industrial economy can exist
without railroads. We, at Fansteel, believe that all others

are

complete—with all utilities, paved streets,

trackage, for immediate use. Thus, you are relieved of the

burden of

preparing the site before you proceed with plant

construction.

every

rail

services to the railroad in¬
dustry are dedicated to preserving this vital national
resource
by every practical means.
who

products

supply

Rectif'er-Capacitor

Fansteel's

And, another important factor—you're also assured

and

Division

constantly

utmost

when you

of the

dependable freight and passenger transportation

locate in Union Pacific territory.

improvements for the products we sell to
railroads. Meanwhile, our quality control program con¬

continues to enforce high standards of
cualitv for these products in order that thev will serve

for any purpose,

we'll be pleased to assist you in every way.

Just contact any

Union Pacific representative, or get in touch

seeks

new

tinues

grow,

reliably and safely. We supply selenium signal rectifiers,
tantalum (Balkite) rectifiers, tantalum surge arresters,
d-c
power
systems and voltage regulated d-c power

units

sunply

for

communications.

Fansteel

which

1959

were

48%

corresponding 1958 period.-

better
'

than

the

1959

whole,

' y

tions

according to industry estimates.

in railroad

There

total

operating expenses

expenditures
reason

every

direct.

Industrial

•

railroad

for

maintenance

to believe

Development

The drive for

efficiency is slowly but surely resulting in steady reduc¬

increased

well

•

that these costs will

page

Department

UNION

PACIFIC

of equipment.

Continued

first six
for the

equipment and improvement
expenditures for 1960 will rise almost 11% over those
On

with

railway

sales for the first half of 1963 are ahead of the
months

considering building, buying or leasing a plant in the West,

OMAHA

NEBRASKA

Continued from page 23

.....

equipment.
It is reassuring to note that, although carloadings, coal
-

production and steel production are down considerably
so far this year over last, transactions in railroad stocks
Jhave increased nearly 24%. This illustrates how a wise
American investing public feels about the railroad in¬
dustry. They have confidence—and this confidence is
shared by Fansteel, and we believe by all other members
of the railroad supply industries.

The

the Coast Line for industries in its territory.

become

has

the

While
service

increasingly

volume

has

Line

Coast

yet reached

not

large

of Outboard Marine Corporation since 1958, has been
parts supplier to the railroads of America from 1919
to the present. Concentrating its efforts in a specialized
field, the company has produced and
sold its railroad hardware and door

pro¬

of the

the

well

less

optimistic

the

our

line show steady im¬

provement.;

does

until

and

to be

seem

been

tween the United States and

last

citrus

..Frozen

year.

concentrates

canned

and

citrus juice now seems to

development poten¬
tial seems bright; the most recent
example being the start of construc¬
tion of a $1 million potato processing
plant at Houlton, Maine for Morningstar-Paisley. vr
In

effort to broaden

quantities may be used in the
of quantity and price, and this
crease in rail handling.
In

passenger

Our plan calls for the

future

may

produce
/

■

account

in¬

some
,

•

traffic, it is expected that the increase

STUART

establishment of

parent com¬

that would assume ownership of the railroad by
issuing its stock to Bangor and Aroostook stockholders
in exchange for their railroad stock.
r
Not all our efforts have been devoted to corporate
strategy. We think we have scored a major technological
victory in a new push button produce car designed to
meet the changing- needs of a portion of the potato
industry.
•,
••
The loading and unloading of this car is automatic
and is accomplished by conveyors installed in the car.
.

SAUNDERS

will

provide savings to the shipper and receiver of
potatoes in loading and unloading costs as well as do
away with the need for containers.
The BAR board at
its July meeting authorized the construction of 60 push
button produce cars.
1
The broad picture of the Bangor and Aroostook is that
of a healthy organization, using all its resources to pro¬
mote steady growth for itself and the business com¬

During the first half of 1960, the Norfolk and Western's
>

income increased

5% over the same period of last
while operating revenues dropped 2%. This decline
in revenues, which was experienced generally through¬
out
the
industry, resulted from a
year

outlook

1960

hope

that

but

expected upturn
production

the

the fall will have
business

remainder

automobile

and

steel

the

for

somewhat uncertain,

activity

traffic levels.

and

govern-

car.

dust particles from enter-

operation of these units

The installation and

quite simplified. In use* as the door reaches its closed
position, the top roller drops into a recess in the track,
permitting the door to rest on the floor. Wedges at the
front' and rear of the door force it outward; against the
frame and keep it from shifting."As the door rests on
the floor when closed, fixtures and track are relieved
from strain, and with the safety stop located in the door
sill all door actions become easy and positive. This No.
401 model is adjustable for very close tolerances and
-its wide wheel accounts for much less friction and wear
the track assembly.

Newest addition to the

company's product line is their

muttipilieity^ of

freight lading anchor. Designed for? the.
requirements found on flats and

gondolas for strapping,

cabling and wiring, this heavy

duty anchor has many

movement of all

unique features which prevents basic

in
in

in transit. Mounted in a recessed

cargo

ing when not

improve

use.

When in use, the "eye" is raised
from the vertical

and will rotate 360 degrees and pivot

position rlightly

it permits full floor load¬

below the floor level of a car,

favorable effect

ing

slight slowdown in economic activ¬
ity and the rapid replenishment of
inventories following the steel strike.
The

from various

net

excluding all normal sand or
y

President, Norfolk & Western Railway Co.

pany

near

for

sealed doors, and safety
fixtures, the company has -designed and produced a
hanger unit which provides a truly tight seal, effectively

position where larger

prevailed in the first half of 1960 will continue
during the remainder of the year.

W. G. Robertson

ings base, we are going ahead with
a corporate reorganization which will enable our com¬
pany to explore avenues for expansion into other fields
of business.

which

earn¬

our

be in

but

units for doors

agencies and railroads for

ment

Our industrial

not only for hangers

specifications,

requirements

increased

With

new

pounds and exceeding eight feet in

weighing over 500
length as well.

during the last half

and

purposes

designed

especially

that Coast Line will handle about
fruit

repair

for

standard

Robert E. Schuler

in good condition at this time and

volume of citrus

same

cars

ing processed

agriculture, the prospects for a good tobacco crop
which may produce an increase in rail
traffic, appear to be fairly bright. The Florida citrus
season,

crop appears to be
it may be expected

de¬

were

installations. Orders are now be¬

car

this

Hangers

operating

express

both

two countries have caused virtual cessation of this traffic.

yet

recently,

Door

on baggage, mail
by preventing the
slamming of doors. Throughout the
past 12-month period there has been
an increasing demand for these units

members

in sight. There has likewise,
heavy movement of traffic be¬
Cuba, much of which Coast
Line has enjoyed, but the present relations between the
not

foreign roads.

many

automatic and posi¬
protection to trainmen and crew

tive

building industry, a

side, the

located

signed to offer

large producer of traffic, has afforded a declining vol¬
ume of traffic for sometime and the end to this condition

Aroostook look with

equipment to a vast majority
railroads in United States, as

Midland

volume of traffic.

to increased

hanger

large group of other miscellaneous industries
by-the Coast Line is also expected to contribute

The

South Milwaukee, a subsidi¬

Company of

Midland

piggyback

handled in

business

restrained
optimism at our prospects for the remaining months of
1960.
The figures we have released for the first five
months show that our net income is up to $667,436
from the 1959 figure of $287,609 for
the
same
period.
Third
quarter
operations, which traditionally pro¬
duce low revenues
may,
however,
reduce this gain somewhat.
We have just finished a satisfac¬
tory
potato
shipping season,
and
shipments from the paper industries
the Bangor and

E. SCHULER

The Midland Company

Manager,

>Sales

portions, it is nevertheless increasing fairly steadily and
that increase is expected to continue throughout the year
and beyond.

President, Bangor and Aroostook Railroad Company
We

Thursday, August 18, 1960

ary

fic

served

ROBERTSON

GORDON

ROBERT

the southeast, this traf¬
important and there are
indications that in the second half of 1960 there will be
a
continued increase in the volume of coal handled by

trial and other developments in

continue to shrink with the installation of newer, better

Chronicle

The Commercial and Financial

(672)

On Dec. 1 of last year,
and

into

of at least $12 million a year

President, Atlantic Coast Line Railroad Co.
brief review of recent trends

single operating unit, and we
that ultimate savings

convinced

are

THOMAS RICE

Coast

Line

realized.

reveals

four

Recently

istics make it

ally by

agreement with the

Much

possibilities for traffic diversification, larger single-line
hauls, operating economies, and greater earning power.

lowed

the

for

trend

same

naturally fol¬
revenues,
where,

freight

six-months

comparative

pe¬

senger

agreeably

revenues

the

riod, Coast Line had an increase of
8.5%. During the same period pas¬

use

changed

time

same

are

their downward trend and increased

and rebuilding activities for

been at this time earlier in the year,
Coast Line's outlook at mid-year for

will spend approximately $46 million for.
capital purposes, and all of these funds will be gener¬
ated
internally.
Early this year we completed our
dieselization program, and we now have 531 diesel units
with an average age of slightly over two and one-half
years.
In addition, we are adding well over 2,000 new
freight cars a year to our car fleet, which already num¬
bers 81,000 cars—more per mile of road than any other

the

economics

in¬

elec¬

tion year, and some disappointment
that business, although good, is not

good

remainder

crease

expected to have

was

1960

for

in its traffic volume

in¬

over

the

W. Thomas Rice
.

last

half

although perhaps
somewhat narrowed margin than during

1959,

Railroad lines

the first

the more important industries which have
the southeast, and. from which Coast Line
heavy traffic, is the pulp and paper industry.
indications point to the probability that Coast

Many

Line will handle
for

account

rather substantial increase in traffic

this

industry

during the

1960, and the volume is such
on

total

importance to
several

being

to make

impression

revenues.

The phosphate

past

remainder

Coast Line, has been expanding
years

developed.

commodity that will be

new

uses

believed
on

for
this

this

for the

product

will

are

another

the plus side in Coast Line's

business during the remainder of the year and one which

will make itself felt in earnings.

tory has been expanding steadily and it is expected that
this

expansion

provide

will

continue

for months

come

and

increasing volume of roadway materials for

Coast Line's handling.
A

commodity that until recent

handled

for

comprehensive

American railroad.

organization
than

research

survey

undertaken

In the past 40 years the Fan¬

assisted in

has

ever

the

establishment

1,800 industries all over the country employ¬

ing more than one million people, and we are confident
that

their

attracting

study

will

industries

best

extremely

helpful

suited

the

Coal

now

for

-;-A

serve.

is
as

the

still
a

Our

most

territory
v v

far

• -

important commodity, and the

result of its merger with the Virginian, is

nation's

largest

originator of bituminous coal.

believe that the long-term

favorable, and

are

recent stabilization and

outlook for coal is

very

particularly encouraged by the
improvement in the export

ket. The overseas demand

mar¬

is primarily for metallurgical

has

coal, and, with large reserves of this type of coal located

the

years

plants, following the growth of indus¬

http://fraser.stlouisfed.org/
/
Federal Reserve Bank of St. Louis

adversely affected by the St. Law¬
Seaway.

rence

Over

and

.•

above

of -traffic,

the

there

general soft¬
has been a

our

line,

are

strong position to participate

in the growth of world markets.

highways at government

new

pense,

ment

ex¬

with but limited reimburse¬
by the users of the full costs

involved, and with no highway user
Perry M. Shoemaker
investing
his capital, as such, in
faciliites, has left the railroads in a rough competitive
situation.

For the long pull, the picture is not black. To

we
.

Coast Line

power

economic

depression

has decreased and of course,
New York is concerned, the
export-import picture is being

goods

most

only in small quantities is coal, but with

growth of

half of this year—serious

Virginia, West Virginia, Ohio, Kentucky, Mary¬ V further erosion of
freight business
to
land, and North Carolina.
As an integral part of this
highway transportation, a" sub¬
stantial amount of which" :has been
program,
the Fantus Area Research organization of
to
private carriage. The profusion
New York and Chicago is conducting for the N&W the

N&W,

Highway construction throughout Coast Line's terri¬

section of the country

in the Northeast

in the second

entire

campaign to attract industry to our six-state;

Lackawanna and
I

problems stemming from one factor, namely
in
traffic. Industrial production has
been
soft. Export of manufactured

area

tus

mining industry, which also is of major

SHOEMAKER

had, in the first half of 1960—and will continue to

ness

Among
located
-derives

have

Expansion'of merchandise traffic is one of our most
long-term goals, and we have launched an

intensive

the forthcoming year with

have

important

half of the year.

received

Western Railroad Company

railroad 250 miles or more in length, i

in the

herent

uncertainties

have

men

President, The Delaware,

This year we
the

in the railroad industry. In

these

projects involving our products.

continuing to improve our

by 7.6%
from

with

encouraging indications of further increases in new car

II, we have spent over $574 million on capital improve¬
ments, of which $460 million was paid for with cash.

Aside

discussions

and make the most effective
modern technology.
Since the end of World War

of the company are sold nation¬

of select manufacturers' representatives,

equipment

and

property

a group

recent

Plate) for a merger with that railroad, contingent upon
working out an appropriate connecting link between the
two roads.
We think that this merger offers attractive

the

quite

highly desirable unit for all roads.

all of them well recognized

(the Nickel

during the first half of 1960 car loading increased
10.6% over the first half of 1959, although the increases
by individual months followed an irregular pattern.

that

All railroad products

Stuart T. Saunders

will be

announced

low as

height. The installation process is

inches

simplified, and the anchor's maintenance-free character¬

York, Chicago and St. Louis Railroad

New

degrees to allow secure tie-down of loads as

ginian Railway.
Great progress has
been made in welding the two roads

munity it serves.

the Norfolk
Western merged with the Vir-:

the con¬

trary, further expansion of piggyback-—which meets
so

and

times betters the flexibility of highway trans¬

many

portation; the steady progress being made in the direc¬
tion

revision

structure;

and

through
finally

betterment of facilities
offer
is

not

encouragement

research

the

our

improved

freight rate

utilization

and

resulting from railroad mergers,

that

turn

the

traffic picture

far distant.

Given reasonable managerial

latitude to compete,

fundamental railroad picture for the

promising.

the
is

next five years

Volume

192

Number 5978

;

The

Commercial and Financial
Chronicle

JOHN W. SMITH
President, Seaboard

take

stock

Air

this

Line

Railroad

article

Rhodes V.-P. of

Company

being

written, of
business conditions at
approximately the half-way mark
of 1960, it is
clearly evident that the
widely heralded
upward trend did not take
place. Instead, overall busi¬
ness
activity has just about held its
own
during the first six months of
the year that

quarters

years

and

was

expected in many
first in a series

HT
Hf *

the

marked

striking

Jfg ;1

jK*-,

continuing gains in the national
feature

earnings that
exerted by rising costs of

been

duction. Increase in
not

kept

pace

ment of Robert E.

Rhodes

the

pany President George

Rhodes

also

Angeles

industry in

Adjutant

partner of J. Barth & Co.
He will

World
at

with

first

the

be¬

Staff

Command

War

was

in 1944

the

was

II,

Air

General

the East and

Midwest.

Transport

Washington, D.

separated from the Army
as

tor of

1934.

Thunderbird

Elected Director

Drive-in Corpora¬
tion, a diversified recreational
and
leisure-time company with bowl¬
ing and theatre chain interests

invest¬

military flying training field at
Phoenix, Ariz.
Also he was as¬
signed to the office of the Chief

joining Spring Street
general

office!

associated

During

asso¬

Maurice M.
Wheeler, limited part¬
ner in
Paine, Webber, Jackson &
Curtis, has been elected a direc¬

with Lehman Bros.- in
the

was

ment

Mordy & Co.

was a

Markets and Mag¬
Research. From 1950 to
1958,

came

Mordy.

will

Capital, Mr. Rhodes

Form

Thompson Co.

Thompson

& Company has been
formed with offices at 258
Broad¬
way, New York City to
a

engage in
securities business. Partners
are

Henry

Major.

Drezner

and

Morton

Thompson.

has

pro-

increase

vice-

president of Spring Street
Capital

Prior

mmS

productivity has

with

the Board of
Greater

American

Los

partment.

without a correspond¬
ing lift in net income. In
fact, not in¬
frequently higher gross has .been ac¬
companied by lower
net, reflecting
on

ANGELES, Calif.—Appoint¬

in the
organization's business de¬

1960's

but

pressure

LOS

Mr.

first half is the fact that
many com¬
panies reported increases in
sales or

the

netic

ciated with George

noteworthy

revenues

Spring St. Capital

All

Co. has been
announced by Com¬

<']

economy.
A

continue

John w.Smith

wage rates. In

retrospect, it now appears that some of the
optimistic predictions for
business volume in 1960
properly appraise inventory trends.
Stocks on
hand were larger than
was
generally realized and liqui¬
dation, rather than
accumulation, became the prudent
course.
Generally speaking, there is evidence that in¬
more

did

not

ventories

are in better
balance than at the
beginning of
the year, with
indications that they, may soon be
at the
point where replenishment and
buildup will be required.
While the Southeast's
economy has experienced
in
some degree the
influence of the forces which
affected
the national
economy, nevertheless there has been sus¬
tained industrial
expansion in this area/This
growth has
occurred in varied
types of business and the
prospects
for a continuation, of
better-than-average growth in the
•

Southeast are good.
: This
region has much to

offer business and
industry.
No other section of the
country is more abundantly en¬
with natural
resources.
Nowhere' can a finer
reservoir,

dowed

of
intelligent, willing manpower be found.
water-supply, expanding electric power pro¬

Plentiful

duction; excellent transportation
living conditions, around out a
more

and

attractive

•

and

unusually pleasant

picture

each

that
to

year

proving

management

seeking opportunity for
improving its operations.
As
management is confronted in
increasing degree
with the
necessity for increasing efficiency and
lowering
costs, the record of success scored
by hundreds of busi¬
ness
concerns
in 'the
Southeast will prove an ever
stronger magnet for

attracting

mercial

operations

this

RICHARD
Vice-President

new

industrial and

com¬

section.

TERRELL

General Motors and

General

Manager of Electro-Motive Division
The

long-range
in

ness,

outlook for the Diesel
locomotive busi¬
and
domestic markets,
is
for
growth as the railroads of
the

both

continued

foreign

world

up to the

challenge of the
Although the domestic

are

plagued

with

not all of
their own

of the rail
carrier
of the national

step

next decade.

SERVE

railroads

THE

many

problems,
making, the role

the

Michigan-Ohio - Indiana

backbone

transportation system

leading
more

many legislators
active interest in

take

Industrial Area

formulating
This industrial
site, almost

the

foreign

replacing

steam

power

railroads

and

overseas

celerated

pace.

market,

Diesel

combination of

ac-

The

potential foreign
business for Diesel locomotive
build-

ers

years

a§0.

from

the ,-intensive

research

and

year,

and accruing
that has

development

Today's Diesel locomotive
over

earlier .models in

three

J'%?■''

skilled labor. 5000

water:

built

turned

the

purchase

Chesapeake

which

SERVING:

equipment equivalent

typical 12-year-old Diesel
freight locomotive unit,
for
;example,: rated at 1500 horsepower, has a
value

Continued

area assures an

pass

this site

•

abundance of
their Way to

'■!!'

Before the steam locomotives

10-inch pipeline from

were
replaced by diesels, C&O
nearby Lake Erie, and a 50,000 gallon
per

page

and Ohio Rai I

Virginia

•

West

Indiana

can

••■.

commuting workers

Turnpike. 10 miles
*

ex¬

or
many other desirable industrial sites
territory address: Wayne C. Fletcher, Director of Industrial
Development, Chesapeake and Ohio
Railway, Huntington, W. Va.
Telephone: JAckson 3-8573.

•

area.

For full information about
this

years.

today's production models.

and from markets and

15 miles to the Ohio

industry of the
A

25, main highways between Toledo

in C&O

Key to the tremendous savings
possible in this pro¬
gram, unique in American
industry, is the value enjoyed
by the railroads in their older
Diesel
power

and

day softening plant. This capacity is now available and
could be
panded without limit. Natural
gas and electricity are available.

unique

Because of the substantial
improvements in operating
increased
capacity of these new locomo¬
models, railroads, by
turning over their motive
power fleets
through a planned locomotive
replacement
program, can obtain savings
potentially the same as
those realized from their
initial Dieselization.
There now are about
14,000 Diesel freight locomotives
of 1600
horsepower or less per unit
Operating on U. S.
railroads which
qualify for this replacement program
the

The diversified

jobs in Toledo.

economies and
tive

over

downtown Toledo and dock

labor:

offers major advancement
important areas:

(1) Increased work
capacity.
(2) Lower maintenance costs.
(3) Better fuel'economy.

Right alongside Chesapeake and Ohio's Ottawa

supply sources. U.S. Routes 24
Detroit, lie on either side.

L.Terrell

American railroad
-managements in meeting two
growing
problems-r-higher >operating costs and increased com¬

petition from other carriers.

offers

your

transportation:

characterized the Diesel! locomotive
since it first began
replacing steam,, are opening an important
avenue
to

(

Ohio-Michigan line,

classification yard, with fast direct rail
service
Richard

dramatic motive power
improvements introduced in the
past

•

Meanwhile,

the

requirements.

JjF'JH

nil

great, if not greater, than
domestic potential of 20

the
'

advantages

to anyone who needs to be in the
heart of
this vast industrial
complex. 913 acres can be divided to best suit

most

•

Virginia

Michigan

•

way

Kentucky

Southern

•

Ohio

Ontario

The Commercial and Financial

(674)

Continued from page

in for

"new"

general purpose type locomotive unit of 2000 horsepower
replacement plan.

under the

housing

parts

long-life

certain

from

The turn-in value results
such

—

unit contains

The

the
Not

off

few such remanufactured pieces, a 10%

the

locomotive list price is granted.

new

replacement locomotive, however, carries the same

warranty
m

as a

same

brand new locomotive and can be financed

way as

new

locomotive.

reductions

tool

new

only is the railroad economizing through modern¬

ization of the motive power fleet
maintenance

strong

with all the attendant

costs, but

it is

acquiring

competitive advantage that permits

important improvements in operating schedules of longhaul freight

movements.

units provided by

the

same

speed.'

The increased capacity of the

the additional horsepower

means

the

The

railroad business in the postwar era has been a
highly competiitve one and its competition has been
generated very largely by public moneys that have pro¬
vided the facilities used by
railroad competitors lor
commercial purposes without
ade¬
quate user charges—in the case of
inland
waterway transportation no
user charges whatever. At the same

railroads have

time

offering of 108,000 shares

the

stock

common

Brook

Labs., Co., Inc. at a price of $2.75
per share is being made today by
Sandkuhl & Company and J. I.
Magaril Co. Of the total number
of shares offered, 80,000 are being
sold

ihe

for

account

the

com¬

and 28,000 shares for certain

pany

selling stockholders.
Net

proceeds

the

from

sale

be used

facilities, and to retire outstanding
indebtedness.

rather

scavengers

obvious

that

"Soaring

the

yet

shown

and

not

than
the

glittering
Sixties"

Report of 1955

good

was a

William White

treated

by the

well

very

Secretary of Commerce

under

"swept

the

The recent report of the

one.

was

good. But both reports were

rug"

by mere transmission to Con¬
gress with no White House thrust behind them.
The
Transportation Act of 1958 was good as far as it went.
It was the product of a Democratic Congress and spear¬
headed by Senator Smathers of Florida who recognized
it as a palliative only.
A Senate Committee is still con¬
ducting a voluminous study for the purpose of deter¬
mining what legislation should be enacted to provide a
strong transportation industry. Perhaps the next Con¬
gress will finish the job that must be done and we hope
that the members of Congress realize
that a strong
transportation industry requires that the railroads be
strong and healthy.
While

working

business

earned last year.

been

the pro¬

with its principal
in Brooklyn,
Y., is primarily engaged in the
design,
manufacture,
assembly
and sale of component parts of
gun fire control equipment, sub¬

place

prospect, with
rate of return not equal even to the low rate of 2.75%
hasn't

used

The company,

wolves.

that another poor earnings year

industry

Balance of

capital.

for the railroads is in
a

will

ceeds

the horizon

purchase additional machinery
equipment, to expand present

and

They are the
only true common carrier; they can¬
not pick and choose their business as
their competitors do. Actually they

The

Facts

Labs., Co.

Common Offered

Administration in Washington. The Cabinent Committee's

Concrete

Brook

be "the big bad wolf."

have

Thursday, August 18, 1960

the po^n^ny's scares will

been subject to

promises

Based

laws and regulatory procedures de¬
signed to regulate a monopoly. The
railroads have long since ceased to

Efficiency

President, The Delaware and Hudson Company

are

GREATER

Public

WHITE

WILLIAM

trucks, motor

porated in the "new" unit. In addition, since the "new"
reduction

handle

can

with
units
tonnages at significantly higher

be handled at the same speed
units, or, the same number of

can

locomotive

fewer

engine crankshafts—which can be incor¬

and

tonnages

same

when turned

$40,000

approximately

Chronicle

marine
firing cables, submarine
heaters, synchro control receivers,
transformers,
salinity
indicating
equipment Tor
submarines
and

surface

vessels, temperature in¬
dicating devices for use on naval

vessels,
based

The

uses.

also

company
other
electric

manufactures

electronic products.

•

and

■

Upon completion of the current

financing, outstanding
tion
of

the

company

200,000 shares of
For

the

nine

capitaliza¬
will consist
stock.

common

months

ended

March 31, 1960, the company had
net sales of $293,581 and net in¬
of

come

$28,184.

With Sellgreri Miller

the

study goes on there are groups already
trying to repeal some of the relief from outmoded regu¬
was accomplished by the
1958 Act, ;In fact,
these pressure groups would not only undo the construc¬

telemetering instruments
shipboard and land

and devices for

(Special to The Financial Chronicle)

lation that

tive action of

Congress; they would bind the strait jacket
more
tightly than before 1958. And they have strong
support in some Congressional quarters.
There

are

OAKLAND,
Hosier is

pri¬
enterprise, but only so long as they enjoy its
They would deny its benefit to their competi¬
tors.- They want a one-way street and are not for a
deal for everyone if their "ox is slightly gored."

Joins
■#.

mystery why the businessmen of America don't

waken to the

dangers inherent in nationalization of the

railroads. It could happen here—as it did in Great Brit¬
ain—and the trend is in that direction. : If and - when
it does happen everybody will make up—but too late.

SAN

A grave responsibility devolves upon both railroad
management and labor and they must not shirk it. They
must face the facts squarely. But the industry needs
help

the

businessmen

deal—not undue
a

this

country

advantage but

get

square

opportunity to make

living without artificial restraint imposed by Congress
Legislatures.

and the State

Coast
avenue

Line's
to

The

exploration of every promising

improved operations led to the con¬

struction of

one

of the first

Fedelund

Over 700 feet long, the trestle
than

question is posed: "Shall

be for private enter¬

prise by giving it lip service, or shall
enterprise work?"
B.

country.

Vice-President and

is far stronger

make private

ber. And maintenance needs

are

General

This

Coast

Line

"first," and

only two examples of
ods
our
we

constantly
railroad's

current

our

ties,

are

materials and meth¬

new

being introduced to increase

efficiency.

For at Coast Line,

firmly believe that efficiency will largely

determine the size of the
carves

in the

new

era

niche this

railroad

transportation we're

FRANCISCO,

Schermerhorn

the

staff

Thanks for Using
Coast Line!"

the railroads will continue to

Co.

and

keep

Company.

ments.

operating at

aopear

the threshold of great technological improve¬
Automation, in the form of radio-directed switch

reality.

use.

manufacturers

engines and
a

their

There

automatic classification

Radio communication
are

now

tenance-of-way

yards,

has

become

coming into

equipment, yard

wider

offices, cabooses

and

outlook, then, is best for those companies in the
who are looking ahead, who are willing to

industry
spend
money

money

now

in the future.

develop products that

will

Rich¬

save

-1.

With Peters, Writer
Colo.—Roger

Hare

has become associated with Peters,
Writer
&
Christensen, Inc., 724

Seventeenth Street. He
erly

with

of New

form¬

was

Rothschild

Co.

York.

Courts Adds to Staff
(Special to The Financial Chronicle)

ATLANTA,
been

Ga.—Jay

added

the

Levine
staff

11 Marietta Street,
N. W., members of the New York
Stock

Co.,

Exchange.

With Schirmer,

estimated 35,000 radios in mai'i-

locomotives.
The

—

Co.

(Special to The Financial Chronicle)

Courts

and

Calif

Incorpo¬
Russ
rated,
Building.
He
was
formerly
with
First
California

has

railroads

Union

Dillon,

FRANCISCO,

satisfactory rate through 1961.

poised

Eastman

McDonnell

The

added

been

Securities & Co.

DENVER,

years.

Despite their well-publicized financial difficulties, the
railroads are proceeding with a cautious
program for
replacing worn-out equipment.

that

Calif—Amos

has

Harris, Upham &
Co., 232 Montgomery Street.
He
was formerly with White, Weld &

months, while not exactly
favorable than it has been for

freight car rebuilding shop at Kenton, Ohio is
benefiting from a more encouraging attitude on the part
of the railroads toward equipment renovation.
We have
a
backlog of caboose orders sufficient to keep us busy
through January of 1961 and there is every indication

(Special to The Financial Chronicle)

SAN

The outlook for the next six

many

Co.

Harris, Upham Adds

with

railroad equipment industry is currently
in the midst of its best year since
1955, nobody in ihe
industry is inclined to feel that our present rate of pro¬
duction has begun to approach our potential.

du Pont

ard T. Smith has become affiliated

•

Our

.in today.

Francis I.

and

SAN

Manager, Morrison-

System, hie.

bright, is certainly

con¬

Dempsey-Tegeler

With McDonnell

negligible.

cross

John

—

become

(Special to The Financial Chronicle)

Although the

testing of prestressed concrete

with

Calif.

has

&
Co., John Hancock Building.
He
formerly with Reynolds & Co.

YELIN

International Corp., a Subsidiary of Ryder

if built of steel span and creosoted tim»

with

was

major prestressed

concrete slab railroad trestles in the

Webster

The Financial Chronicle)

FRANCISCO,

nected

Eggs once scrambled can't be unscrambled.

from

1951

Dempsey-Tegeler

(Spoftial to

R.
a

Co.

was
formerly
Harris, Upham & Co.

benefit.

It's

lot of people who give lip service to

vate

square

Calf—Robert

affiliated wi+h Sell¬

now

gren, Miller
Street.
Fe

Atherton

(Special to The Financial-Chronicle)

BOSTON, Mass.—Edward F. Costigan has been added to the staff
of

Schirmer,

Congress
New

changes.
F.

Atherton & Co., 50
Street, members of the

York

and

Putnam

Boston

was

Stock

previously

& Co.

Ex¬

with

Volume 192

Number 5978

The Commercial and Financial Chronicle

rising

The Causes and Cure

(675)

proportion
of
costs
supplements.
'

for

wages and

While the rate of return of the

the5 Railroads" Ills

railroads
has
cent

Continued from

page 3

Pullman-passenger fatalitv

ThTretaTe t0, "'If61

load^lonepi
train® greatS^ availabiHty fnd
less

strain

the

structure,

and

ran

anu

plater

tracK

safety

locomotive operations
The

greater

h b

Table VII shows.

In both of

Price

index

since

Period taken

chasing

reduction programs and from the
drastic financial reorganization of

table, the real worth of the 1959
net

power.

scribed

income

was

the

1926-1930

the basis of

com-

Table VIII.

may

;

railroads

shown in
be noted that

It should be noted that would have been

even

lower had

in Table X the reported net in-

worth of the income doUars are
of the railroads is related to
haehannenedtnthe
J netin the shareholders equity. The reomii,r5c J.urn °?- ,s.tockboldeis ^quit^ bas
re

tha

miirnnrJc

the ra

reported

net income in the postwar period as

th*S% figUrf T avfage reJeT^

t e amo

been sliding downward and the
in ratio of dividends to equity has

converted

are

Table IX to dollars of 1929

Continued

pur-

ton-mile have been affected

;

There
•

have been

Trends

three

consec-

utive years of relatively low trafin the 1957-1957
period. Fur-

fic

thermore, total carloadings in the
first half of 1960
the

3.6% below
period of 1959. The year

same

1947

the

was

were

high

postwar period in
ton-miles

and

point

revenue

has

the

freight

not

been

equalled since. The 1959 total
than

12%

under

was

the

1947

volume.

reductions

merous

specific

commodities for competitive

rea-

SOns" The avera.Se rail revenue
pe! passenger-mile m 1959 was
Y T'*han
th®
-1926-1930 period, although costs
°f Servlce have rlsen much more'

Until recently, as shown in
Tabl.e *' the trend of railroad operating revenues has been upward* Since the 1926-1930 period,
for example, total revenues have
increased more than 50%. Howthis is not

ever,

true

measure

-j Trailer-on-flat-car

or'"piggy- growth but largely of inflation
back"
services
still
in
the J*a
oad
earnings in real
early stages." of expected strong *erms f1*? •' constant dollars), have
growth. However, piggyback servfshown subsequently
ice still
are

accounts for only a small'
fraction of total rail freight traffic
—about 2%—and its future lies

Table 11 Presents trends in the
compensation
of railroad
emahead. Basically, it combines with- Payees, including wage suppleout transfer of lading the
economy ments or the so-called "fringes."
of
rail
linerhaul
transportation It,.also shows how railroad emwith the advantages of trucks for-'Payment
has 'declined in the
pick-up and delivery. This rela- Postwar period as wages and suptively new service is being con- Plements have spiralled* upward,
ducted
at
present with various n ma^ be seen that the greatest
plans, arrangements and types of declines have occurred in main-

facilities

and,

hence,

its full

po-

■

tenance employees,

tentials for economy and improved
service have not yet been realized,

roads

Interline

labor

movements

are

ing

and

terminal facilities

oped.

interchange
TOFC

increas-

arrangements
are

devel-

may

service

prove

V As a service industry, the railhave a high proportion of

costs.
In 1959, as the last
column of Table III shows, labor
costs absorbed nearly 56% of total
railroad revenues. This ratio has

eventually to be a step toward the
widespread use of interchangeable

been

containers.

table

■

The

Passenger
roads

the

traffic

the, railis continuing to decline from

peaks

Second
of

Losing Passenger Business
on

attained

World

railroad

during

War.

The

the

volume

passenger-miles

has

receded to about two-thirds of the

annual

average

period,

although

market

has

There
on

the

total

increased

have

been

1926-1930
travel

greatly.

heavy

passenger-train

for

except in World War
II, and the deficits have increased
many years,

since then. The

special problem of

commuter service in large metro-

politan areas, with its sharp and
short peak requirements, has been
a

serious

this

factor

situation.

growth

contributing

The

other

deficits

forms

travel

(especially by auto and air), rising
labor costs, high railroad property
taxes, and obstructions encountin

ered

the

hopelessly
There has

discontinuance

unprofitable
teen

services,

decrease

some

the total passenger-service

out

separate

deficit

have risen

costs

unit of out-

per

put in the period since World War
jj.
The figures are expressed in
terms of gross ton-miles

(cars and
dollar of compenemployees. As the index
in column 4 show, out-

contents)
sation to

figures

per

per
dollar
of
compensation in 1959

57%

employee

INDIANA

•

LOUISIANA

•

CAROLINA

•

GEORGIA

•

KENTUCKY

MISSISSIPPI
SOUTH

TENNESSEE

pe-

riod.

VIRGINIA

Rising costs have greatly dethe railroads' margin of

pieted

earnings,

shown

Table V.
Whereas in the 1926-1930 period,
18.5% of operating revenues was
carried
through to net railway
operating income, by 1959 this
margin of net to gross had shrunk
to
Even during the 1931_
as

period

since

of depression, this
13.4%. In the period
Second
World
War,
costs,
principally
for

was

the

mounting

THE MODERN SOUTH IS
and diversified and has
could

problem knowing where to begin

But it needn't be!

Instead of
our

you.

give

jumping around haphazardly, call

Industrial Development Department to

One of

our

the facts and figures

you

you are

of course—and

home for your

Southern

won't

have to leave

even

one

South, both public and private,
and local levels.
Either way,

So, come to

us—or

$900 million for

passenger-train

new

cars

have

spent

and improved

million

way

passenger-type

locomotives.

has
spect

been

to
.

both

safety

passenger
■

outstanding,

re-

and

in-

fatalities

juries. There has not been

single

that

the

cents

per

revenue
carried
railway operating in-

declined from

come

Une

cents
5

the

1959.

tab,e

shown

the

comprehensive

source

of plant location
South.

Call
Let

write

today. No obligation, of

help you...when

you

course.

"Look Ahead-

Look South!

PRESIDENT

SOUTHERN RAILWAY SYSTEM
WASHINGTON, D. C.

reduced

margin from 1929 to 1959 is acfor principally
by the

counted

go to you.

you'll immediately have working for

19.9 cents in

1929 to 14.7 cents in 1939. and to
7.6

...

with

another

gr0s3

down to net

The improvement record of the

railroads

dopar

line

on earn-

in Table VI. It shows in the

bottom

for

persistent squeeze
is demonstrated in

ings

another

and

$500

The

state, regional

we'll

information covering 12 states in the

of the oldest in the business.

you one

War

closely with similar organizations in the

^ Ureases'Tn revenues^ 1°^'*

World

looking for,

Railway's Industrial Development

Department is
It works

you

preliminary screening.

labor, materials and taxes, have

since

help

trained industrial specialists can

these adverse trends, the railroads

trains.

losing

plant site investigation of this fast-growing region.

Despite

big

much to offer that it

covering virtually the entire South. Confidentially,

Earnings

1935

ment

NORTH

CAROLINA

only

riod and 48% of that in the 19361940 period. Expressed the other
way
around, the labor cost per
gross
ton-mile
has
more
than
doubled since the 1936-1940 pe-

margin

tion Act with respect to abandon-

was

of that in the 1926-1930

1957,

improved procedures under the 1358 Transport-

ILLINOIS

FLORIDA

•

Table IV shows how total labor

since the peak less experienced in

reflecting

ALABAMA

the increases that have
in wage supplements.

reflect

columns
occurred

sets

put

losses

service

substantially higher in the
postwar period than before. This
also

$310 million as
the reported

only 42% of the average annual

^T^Therfhave alTleen °nu-

and

the

amount of $578 million, and was

with

MESSjSrsTSS 2i
f S&T

v.^

to'

'30s.

compared

a n

Railroad Fluctuations

footnote

railroads which became
bankrupt in the depression of the
many

t i all y,
the "been
weighted average cost of fuel and ■ *i +• generally •upward in the inpower per unit of service has des

On this basis, de-

the

in°' ^ 1926"193° ^

Rail revenues per ton-mile and I960, was 2.5%.
0 :
Per passenger-mile have increased
Net income of the
much less than the consumer after fixed charges is

IT A^hlhTcoS
s

net investment

it not been for the reductions of
fixed charges resulting from debt

'. for the 12 months ended May 31, misleading unless changes in the

Revenues and Costs

parison.

of diesel
operations, with reference to fuel
economy

their

chronically low, in reyears it has fallen still lower,

^ ^
locates
^

savings from greater

flexibility of operations, the elimination of
water-supply facilities

been

The Southern Serves the South

page

vrM

inwin

v»Y«TWM

«.

w»!

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The Commercial and Financial Chronicle

;r-y

Inadequate Reserve Capabilities

and Cure g
For the Railroads'

auses

Continued from page

likewise

remained

purchasing

income

and

should

clear

dollars
These

$818

account

the

why

ture

been unable to at¬

the

equity capital.

ities—past, present and projected

million

1959

were

entirely different pic¬
On this basis,

presented.

capital expenditures in 1959
equivalent to only $342 mil¬

were

The First National City Bank of
New
York
regularly
publishes

lion in

net

assets

tions.

The

been at
list.

last

1959,

the

among

responds

very

turn

shareholders'

industry
3.4% rate
re¬

shown in Table X.

As the

cent

the

preceding data have in¬
the railroads for many

period, have been at
thin

edge

railroad

betterments

expenditures

was

expenditures in recent
in

the

use

so,

retained

earn¬

the

railroads

especially
inflationary influ¬

have

these

thinned

the

flow

accumulation of

further

inadequate

been that railroad

they
and

have

result

depreciation

expense

has

earnings, low

been,

are

overstated

consequently, the carriers' in¬
tax liabilities have been

come

ex¬

cessive.
I

due

increased

course

conditions, both
capacity and in modern

Such limitations upon

casionally

been

the capa¬
have oc¬

encountered

surges

equipment

demand.

carriers

maintain

United

States

fleet

reserve

Passenger

Mail

Express

$324

$38

$28

$48

Other

1926-30

4,611

905

112

140

2,724

392

3,267

419

176

meet

temporary

the

upon

and

tenance
ments.

tion,

for

Th^se

capital

progressively

capability

rail

sevice.

the

progress

competitive

the

SOURCE:

8,041
8,808

emergency.

8,951

V 757

10,223

287

119

437

10,551

8,929

735

292

438

10,491

675

328

400

9,565

of course, that it
may
appear
with little or no
warning; nor can its exact dimen¬
sions be fully anticipated.
Despite the inherent uncertain¬
ties, we are by no means wholly

330

railroads

116

accounted

for

416

97%

9,825

revenues

all

1959).

loss

based

TABLE

tions

EMPLOYEES AND COMPENSATION
in

and

the

1926

United
-

Compensation

1900b—

1,017,653

Average
Average 1931-35
Average 1936-40
Average 1941-45
Average 1946-50
Average 1951-55
1926-39

Average compensation
Per

employee

per year

577,265

1,653,896

2,851,013

1,587

1,320,001

1,289,987
1,166,379
.1,042,664

1,985,179
3,505,033
4,758,478
5,491,516
5,768,293

Per hour

worked

1,933
2,655

$0.66

1,713

1,670,191

1,026,796

1956—

paid for

567

1,052,738

Per hour

$0.68

0.67

0.70

0.77

0.82

0.96

3,689

1.43

1 56

1.88

2.25

2.34

2.67

1957—

•

986,001

5,848,074

5,931

2.53

2.90

1958___:
^

840,575

5,378,348

6,398

2.72

3.14

1959—.

2^L^?,,ab,e-

815,474

5,495,154

a Inchides wages and supplements,

bOURCE: Interstate
Commerce-Commission.

6,739
b All line-haul

visional

efforts

.2.86
railroads.

'3.29

results
must

these

remain

Year

security
Nevertheless, some
the

ments

noted

here

have

World
scale

It
in

the

War

any

problem
general

and

the

experience,

the

for

may

terms.

here
World

the

burdens thrust upon

ele¬

learned

Korean

necessary

detail

basic

lessons

II.

during
not

reasons.

per

the

ton-mile

employee^- v*

1,018,119:

Ton-miles

Rail

175,928
5.8 to 1

gallon of fuel

per

; '

—192

Truck

-____—______

56 'T

;

Ratio of rail to truck

the

3.4 to 1

Some of the major problems of

and

III

;

COSTS
the United

1926

States

1959

Other
Compensation
Payroll, Supplem'ts Including
Taxes

(a).

$
25

1.635

Supplements

577
35

1,881

277

577
2,851

Ratio
to

•

Revenues

38.8%
47.2
48.7

1,670
1,985
3,505
.4,758

196

4,466

$ 90

3.301

54.0

49.4

43.6

5,170

284

5,492

5,325

334

109

5,768

54.7

5,358

342

148

4,930

132

4,986

374

135

5,848
,5,378
5,495

55.7

316

53.7

Includes pensions

and health insurance.

,b All

•
*
.

56.2

55.9

line-haul

railroads,

Commission.

TABLE IV
TON-MILES

Class I Railroads

AND

the

LABOR

United

COSTS

States

1926

Freight and
Service

1.341.5

$2,851.0
1,670.2
1,985.2

___

926.5
1103.6

___

1941-45

1,792.1

1951-55

1,613.5

1,654.0
1.587.4

—

1,433.1

—

locomotives
wages.

•

Interstate Commerce

Class

All line-haul

railroads.

108
73

294

287

271

266

267

compensation,

including

57
wages

and

Commission.

TABLE

Average 1946-50
Average 1951-55

SOURCE:

-V

511
344

5,495.2

b Total

118
118

5,378.3

1,468.1
tenders,

and

100

555

5,848.1

—

556

4,758.5
5,491.5
5,768.3

i 1957

471

3,505.0

1,635.8

1900a

Per Dollar of

Compensation
Index
Average
*;

(Millions)

1946-50

Average 1926-30
Average 1931-35
Average 1936-40—

Gross Ton-Miles

Employees b

(Billions)

CONDENSED

recite

Compensation

Passenger

1936-40

supplements to

Year

1959

Miles in

1926-30

Excluding

SOURCE:

Gross Ton-

tremendous

—

2,826

the railroads

1959—_____

trouble..
War

fuel

Ratio of rail to truck...

Salaries

1958

smaller

efficient

Total

Average 1941-45

than

Truck

Wages and

1956

:vr

planning
con¬

are

(In millions).

1931-35

rail¬

largely

for

average

efficient

aimed to keep abreast of
changing conditions and new de¬
velopments. Necessarily, the pro¬

fidential

Hail

Total

GROSS

arise.-

the

Ton-miles

made

1900

Interstate Commerce

SOURCE:

future

and

195768

*Not available,

roads,

-1 03

4,708

5,532

agencies

Class I Railroads

1959—

planning and analyzing is a
continuous activity between gov¬

States

al,090

might

nature

that

and

times

three

utilization

LABOR

1957

Such

1959

Total

Number of

Employees

the

times

manpower

TABLE

1956___.

such

analyze and plan,
considered
assump¬

emergencies

ernment
Year

upon
as

essence

is,

emergency

Interstate Commerce Commission.

1900

fairly

from

1957___.

capability in the event of national
The

allowance

variations

1900b—

Average
Average
Average
Average

431

Railroads

1956,

recent

Average 1926-30.
Average 1931-35.
Average 1936-40.
Average 1941-45.
Average 1946-50.
Average 1951-55.

develop must be dis¬
tinguished from the problem of

117

651

Year

may

311

when

Average
Average

that

handled

the most

possible

meet gradual and sus¬
increases in future traffic

tained

1958 shows

year
are

intercity trucks in the utilization
have

not

World War II pattern in the event

tions; to

832

Class

Even

for

What I have said about prepara¬

3,427
4,015

six

nearly

the railroads have had.

present

8,542

was

year

transportation

325

actually

railroads

386

(Class

good

problem,
it
should be noted, is not merely one
of
quantities
of physical
facili¬
ties; the kinds of modern facilities
required for improved service are
no
less important and in many
more

the

for

railroads

marized below.

This

1911; 99%

that

gency.

make more

114

erations

basis. Such comparisons of rela¬
dustry operating so closely and for tive efficiency go to the essence
long at the margins of financial of mobilization planning for maxi¬
strigency is not in a position to mum performance with minimum
provide any substantial reserve of drain upon scarce resources. The
capability to meet a sudden emer¬ rail-truck comparisons are sum¬

diffi¬
cult a restoration for subsequent
growth in future requirements for
and

121

railroads.

;

prolonged, would
shrink the railroad

219

railroads

ad¬

well

Thus, a comparison based on re¬
ports of the Interstate Commerce
Commission with respect to op¬

railroad

;

resources.

similar
reserve
of
equipment
capability now. This lack points
up the cardinal fact that an in¬

further

972

line-haul

The

greatest economy and conser¬

vation of essential

considerable
and also a

facilities.

basic

mode .of transport which qah
requiremnnts with

prepare,
reserve

attri¬

1956___

have

did

in equipment

improve¬

processes

1,340

8,312

capacity

6,141

1959___

time

substantial

tight reign
expenditures for main¬

7,134

8,071

lead

War

warning,

vance

continuously

1951-55

World

ond

National Emergency

$1,487
6,038

157

1936-40

1957

the

resources.

Other important differences are
with the coming of the Sec¬

that

which

has necessitated keeping

almost

Total

270

1931-35

1958___

tive

territory and produc¬

own

environment.

$1,049

meet the major

our

nancial condition which in recent
years

highly

1959

(In millions)

1946-50

pose

adequate

and for the essential sup¬

defense

assump-^

the

use

War II did not involve defilement

traffic

the

and materials becomes

in at an urgent hecessity under comlij
This tions of resource mobilization for

emergency.

unwarranted

economy

manpower

port of the civilian economy. And
the railroads are the general-pur¬

reflect

inability

emer¬

tion, among other reasons because
of the important fact that World

These

inadequacies

financial

respects

Freight

1941-45

his¬

favorable

line

are

the

1900 and 1926

Average
Average
Average
Average
Average
Average

their

would be

that

fact

en¬

repeated

national

motives.

OPERATING REVENUES

1900a__

most

respects

and

rates and charges

TABLE

Year

respond with

peak requirements. But here, also,

ability to

obsolescence.

the

Railroads

that

doubt

conditions

the

The traffic capacity now, even
past have been seasonal and with assumed emergency condi¬
temporary, relating to shortages tions of heavier loading per car,
not
much
the extent of equipment in periods of sud¬ is
greater - than
the

contributed to

reality been much lower than
actual figures would seem to

Class I

can

under

now

funds from depreciation and have

capital

years

would

Throughout

the

railroad

reason

railroads

den

ences,

tal

Furthermore,

cost then

years

and

vulnerable

1959. Such a level of capi¬
expenditures has not been at¬
tained in any year of the postwar
period.
case

obvious

made

extended pe¬

million

all

future

depreciable
The matter for real concern is
plant, including both road¬
way
and structures, was 1.69% that the railroads shall not^ be¬
and for equipment it was 3.66%. cause of persistency advene con¬
of
The very long depreciation lives ditions
transportation policy,
represented by such rates have continue in their weakened fi¬

riod make capital expenditures of
at least $1.5 billion
annually in¬

$818

There

that

assume

countered in World War II would

fixed

significant when it is noted
that to take advantage of techno¬
logical and other changes the rail¬

freight

The average rate for

period

stead

based

ments

past two years. The figures shown
in column 3 of the table become

dustry which thrives on mass vol¬
of
transportation
service.

umes

major national

and to finance

and

since World War II and the sharp
declines that have occurred in the

roads should for

in¬

carry fixed charges
equipment replace¬ there is no doubt that the rail¬
improvements
with roads could and would respond to
earnings
left
after
taxes
and a growth trend of future traffic
with the requisite cars and loco¬
modest dividend payments.

capital

the

another

out¬

their

and

known

standing performance during that gency, authorities are agreed that
critical
period
has
many
times the major brunt of transportation
been acclaimed by the highest and requirements ;■ would
again
fall
best
informed
government
of¬ upon • the railroads. :. They will,
ficials, both military and civilian. therefore, continue to be a pri¬
It is recognized, of course, that mary defense facility. This conclu¬
it would be a serious mistake to sion rests fundamentally upon the

gross

ings. However, the low level of
railroad earnings has limited both

1959, denotes the efforts of the
railroads to increase the level of
such

their costs the railroads are

borrowed funds

the period 1926-

over

intervenes,
developing additional capabil¬
ity or traffic capacity provided the
traffic and earnings to sustain the
additional capacity are available
or
in prospect. By the nature of

well

are

Thursday, August 18, 1960

the

additions

tion and disinvestment

to
possible, it has been necessary to
make up the wide difference with

facilities.

railroad

for

attri¬

bility of the railroads

for the industry.
record

given
notice

railroad

severe

original cost to
provide the funds for replacement

with earnings even below the av¬

The

unless

tions

This problem has, of course, been
serious
for
those
carriers

expenditures

the

after

car

most

erage

lead time

necessary

and

costs in the neighborhood of $10,000. The inadequacy of deprecia¬

strin¬

ability of the railroads to finance
capital expenditures for the im¬
of

the

gency. Among other consequences,
these conidtions have affected the

provement

insurmount¬

of approximately $2,500. To re¬
place such a car with a modern yard facilities.

or near

financial

There would be

capital improvements has

acquired in 1929 at

car

and particularly in the re¬

years,

indefinite

the

able difficulty in the future,

the

be illustrated in terms of

Capital Requirements

dicated,

into

inadequacy
of tory over the past century, as well
funds generated through deprecia¬ as now, the basic plant of the rail¬
tion
charges in the inflationary roads has had a substantial re¬
postwar period. This problem may serve capacity. And this capacity
been

equity

down, not

needed

cor¬

closely with the

going

1900

expansion of their capacity to any
foreseeable growth in the demands
A
major
factor
limiting
the
ability of the railroads to finance upon them.

73
a

been

Depreciation Inadequacy

railroads

of return. The Bank's method

have

up.

near

covered, with

groups

riod

railroads have usually
the bottom of the

Thus,

were

of corpora¬

groups

1929 dollar values. In real

terms, therefore, railroad capital
expenditures in the postwar pe¬

data showing the rate of return on

from

—

future.

slightly above the average of the
1926-1930 period. But when the
greatly diminished purchasing
power of the dollar is taken into

of the

power

overlooked.

make

railroads have

tract

very

dividend
be

not

conditions

general observations fol¬
low about railroad traffic capabil¬

indicate. The capital expenditures

low
levels. Here, again, the declining
worth

Some

OPERATING INCOME ACCOUNT

Railroads

the

United

States

(In millions)

Operating

Operating
Expenses,
Taxes,

Revenues

And Rents

Net Railway
Operating Income

% of
Amount

Revenues

1.487.0

$1,005.8

6,038.3

4,923.4
2,969.1

1,114.9
457.7

13.4"

3,426.8

481.2

32.4%
18.5

4.015.2
8.041.3

3.434.9

580.3

14.5
14.4

6,881.1

1,160.2

8.807.5

7,981.7

825.8

9.4

10,222.5
10,550.9
10,491.4

9,196.1
9,482.7
9,569.1

1,026.4
1,088.2

10.0

922.3

8.8

9.564.6

8.802.3

762.3

8.0

9.825.1

9.007.4

747.7

7.6

;

Interstate Commerce Commission.

10.1

Volume

the

railroads

192

Number

have

5978

The Commercial and Financial Chronicle

(677)

Under existing conditions,
the endeavoring to recover in landing
of railroads do not have an equal op¬ fees and other user charges a
pertaining to the industry. portunity to compete. As private. greater part of airport costs which
Under this final heading of "prob¬ enterprises, the railroads bear a are borne
by them.
lem areas," there remains to sum¬ full
line of costs, including the
Commercial
operators
on
the
•

view

emerged

in the preceding analysis

data

marize

the

matters

already

costs

and

States

men¬

them

relate

First World War has been the

tained

and

sus-

rapid

development of
other forms of transportation be¬
sides the railroads—by highway,
by improved waterway, by pipe¬
line, and by air. Growth of each
of

these

period

has

the

While

War.

these other

ably

accelerated

since

Second

the

World

development

has unquestion¬

means

contributed

transporta¬

different

everyone

19567

charges

Let

clearly

and

they

claim

traffic

simply

not

understood

user

tion

entitlement

competitive transpor¬

Commercial

these

costly

the

cases

and

the

the ground

facilities,
the

St.

except

Panama

Canal

Lawrence

Seaway.
Moreover, the commercial airlines
and other aircraft operators pay
no
user
charges
toward
the
mounting costs of the Federal air¬
ways or to reimburse the public
expenditures for Federal aid to

by government pol¬
to the maintenance of

and

user

tained at taxpayer expense pay
nothing whatever for their use of

fostered

icies,

that

sound in principle and

are

operators on
waterways constructed and main¬

successfully up to this
will, I am sure, con¬
tinue to object to the continuance
of unequal conditions of competi¬
very

agrees

now

nearly

system, the development of
charges has been extremely

slow.

vigorously objected—though

time—and

although

that
they have had it before. But they
have

respon¬

tation

fixed

Health

1929,

1939

behind,

United

and

6.
7.

Fuel,

1939

Over

1929

100.0

48.4
0.8

and

3.8

46.7

53.0

10.4

6.3

material

6.3

6.9

0.6

23.1

10.

22.4

19.7

d3.4

4.1

5.1

6.4

2.3

Loss and damage, injuries to

reports

SOURCE:

1.3

2.0

1.5.

,..1

3.1

1.1

80.1

85.3

92.4

12.3

19.9

14.7

7.6

(J12.3

Commerce

problem

for

area

has

be¬

competitive,

railroads continue

^to be sub¬

monopoly-type regula¬

fashioned

Class I Railroads
1900

in the United

and

1926

many

years

ago.

carriers

subject

their

total

Investment

Railway

that

For

lack

taken

the

ally,

approximate

inland

except

the

achieve low unit

greater

regulation

Rate of

freedom

compete,

Sums Up

Great

Lakes

of the traffic is

way

Regulated

vs.

Unregulated
In summary,

then, the situation

regulated

freight

traffic,

and

traffic

for

unregulated

the

railroads

con¬

and their
or

regu¬

principal competitors is

follows:

Mode

'J;:

Railroad

breakdown of water¬

Regulated

Unregulated

100.0%

Highway

traffic between regulated and

0.0%

34.1

River & Canal

65.9

10.8

89.2

these

Recasting

proportions

brings out that 85% of this inter-

city freight traffic that is subject
Continued

on page

TABLE VIII

OPERATING AND

NON-OPERATING INCOME FIXED

CHARGES, AND NET INCOME
Class I Railroads

in the United

States

(In millions)
1959

Net

Other Income

Railway

Less

Operating

Misc.

Year

Average
Average
Average
Average
Average
Average
:

;

Income

• •

••

1926-30

•,

and

307.8
206.8

144.1

640.2

153.8

1,160.2 *

•

Net

668.4

580.3

Income

684.8

457.7 *

1946-50

$737.9
Def

3.9

84.2

635.5

678.5

825.8

1951-55

192.5

481.1

537.2

1,026.4
1,068.2

1956—

Fixed

Contingent
Charges

Deductions

$1,114.9

1931-35
1936-40..-..
1941-45

.227.8

448.1

806.1

222.7

414.6

876.3

1957

922.3

234.2

.419.1

737.4

1958

762.3 '

271.5

432.1

601.7

1959

747.7

257.0

427.0

577.7

I)ef—Deficit.

Interstate Commerce Commission.

SOURCE:

TABLE
NET INCOME

es¬

ADJUSTED

Class I Railroads

CONSTANT DOLLARS

United

the

States

1926- 1959

R;:7-

Intercity Share Declines

Net Income

The

outlines

can

terms,

presented
as

year

freight and passenger traffic has
declined.
As
to
freight traffic
there has been a persistent drop
from

67%
in

further

825.8

3.54

1951-55

26,168.7

1,026.4
1,068.2

3.92
3.95

922.3

3.36

Investment

762.3

even

severe

matter

and

wide¬

concern. The rail¬
intercity passenger

share of

from 64%

and

1958

747.7

2.72

1958—

1959—«—

Estimated.

SOURCE:

Dept.

Interstate

Portion

Consumer

cash.

investment, 1926-1952, from
Railway Economics, Association of American Railroads.

also

Commission

traffic

Year

Labor

Statistics,

paid out .in dividends adjusted to 1929 dollars on
Index, balance on basis of Railroad Construction Index.

SHAREHOLDERS' EQUITY
in

the United

States

Cash

Net

Income

Dividends

Income

Average 1926-30—

$737.9

$445.7

1956—

1958

Stock

plus

Def—Deficit.

SOURCE:

surplus,

Net

Equity

1957

Great

Bureau

Ratio to

1959

the

and

Shareholders'

for

Eliminating the pipelines, which
highly
specialized carriers,

310.2

1926- 1959

are

e239.2

income

Price

Average 1941-45—
Average 1946-50—
Average 1951-55—

accounted

318.7

(in millions)

100.0%

395.5

234.9

170.0

TABLE

-7

476.2

229.5

168.5

577.7

RETURN

and

net

Average 1936-40—

15.7
17.5

218.1

164.0
<;

362.4
463.6

158.5

601.7

162.1
194.1

Commerce

Average 1931-35—
46.4%

Waterway
Pipeline

traffic

132.7
155.0

;

Class I Railroads

8.6

of Labor.

NOTE:
basis

$736.7
Def

Def—Deficit.

still

20.5

Airline

7 620.7

537.2

Highway

only 0.05%.

102.3

116.2

1946 to

declined

follows:

Railroad

2.76

in road and equipment used in
plus material and supply in¬

Interstate Commerce Commission, except net

traffic the de¬
proportion of

commercial traffic

intercity
become

7" 90.4

97.9

737.4

4.80%

81.9

84.2

876.3

2.51

481.2

84.3

1956

of passenger
cline in the rail

According

80.4

.1957

case

3.9

Def

1931-35
1936-40

1946 to
the

(Millions)

99.4

with indications of
In

(1929=100)

100.3

806.1

1959.

Power

$737.9

1941-45—
1946-50

Of 1929

Purchasing

Index

(1929=100)

(Millions)

1926-30

1951-55

the total in

1958,

Construction

Index

678.5

decline

been

Year

Average
Average
Average
Average
Average
Average

Railroad

Price

Dollars

quantitative

set forth below. In each
the postwar period the
share of total intercity

4.97

Net

Investment

23.088.3
23,328.7
23.338.4

depreciation,

In Current

situation

this

580.3

27,012.7
27,440.4
27,633.1
27,484.4

Consumer

Net Income

1,160.2

(Millions)

Return On

457.7

gener¬

under regulation.

pecially in the matter of rates and
charges for their services.

31%

1,114.9

accrued

may

motor

movements, is not

A similar

costs, must have

1.94

Income

comparable basis,

conditions

waterways

where only 2.5%

for the

Mississippi River System

intrastate

This is

the

traffic.

better measure, this ratio

lated.

the latest avail¬
able data, for the year 1958, the
freight traffic volume relation¬
ships between the regulated rail¬
roads
and
their
predominantly
unregulated
competitors
shapes

Operating

(Millions)

sisting of exempt commodities

further in 1959.
Net

Net

less

reported

subject to regulation.

accounted

intrastate

the ICC, an undetermined
part of

For the most part, the competition
which
the
regulated rail¬

traffic fell

States

1959

Average

service,

handled

was

with

spread public

23.568.2

regulation, the other 90%
for by private
operations, large volumes moving
under regulatory
exemptions, and

1926

railroads.

the

transportation

increasingly

come

road

RETURN

$23,221.3

and

mileage

Although
the

ICC

being

operating illicitly
authorization.
Further¬
more, although 34.1% of the ton-

;

increasing, sense of
urgency, students of the trans¬
portation scene have recognized
that regulation is another major

has

Commission.

TABLE VII
RATE

1959_

Bureau of

3.3

1931-35—
1936-40
1941-45
1946-50

available

without

With;

Mississippi River System (in¬
cluding its tributaries) is subject

for-hire carriers

charges in the

user

Trust Fund.

has

1958—

ventories

3.3

1926-30—

transportation

the

of the total traffic

the

which the state commis¬

over

taxes, license arid
registration fees, mileage taxes,
tolls, and other Federal excise
taxes designated for the Highway

46%

of Interstate

1900_

Average
Average
Average
Average
Average
Average

about 10%

Except for the relatively small
part

fuel

total

Year

*Not

2.0

persons, insuranceTotal expenses and taxes..
Net railway operating income

form

railroad

supplies,

Depreciation and retirements
Equipment and joint
facility rents——i.

Calculated from

based on ICC and U. S. Corps of
Engineers data indicate that only

100.0%

include all Fed¬

payments

eral and State

0.8

42.6

—

/ .\-;7 :

These

5.80

2.6

costs—

0.1

In Dollars

44.1

taxes

wage

—J.-

of transportation

1959

100.0

42.6

—

miscellaneous

SOURCE:

railroads, as a kind
enterprise which
requires large volume in order to

States

welfare

Other taxes

d Decrease.

.Airline

traffic, such
could not be great
affect materially the
picture.
Calculations

enough
7 general

charged

expenses

Total

12.

doubt

the essential basis for the conten¬

DOLLAR

1959

100.0

revenues

and

contrast, all highway unregulated can be made for comuser charges paid in that year by
parative purposes only on the basis
Class I motor carriers of property
of tonnages rather than ton-miles,
amounted to only 5.1 cents of each
While there may be some margin
dollar of their operating revenues.

tion

the

1929

wages

—

enues.

not

REVENUE

—Cents Per Dollar of Gross—

Item

Payroll

11.

operators

1959

can

public

tion

Government; lags'

Increase

and

commercial

eral

RAILROAD

Class I Railroads

and

operating
3.

that

ject

TABLE

Operating
Salaries

roads must endeavor to contend is

DISTRIBUTION

ordinary, light vehicles.

Certainly there

airports. In this respect the Fed¬

regulatory standards and habits of since to an increasing extent the
thinking inertly tied to the past. local airport operators have been

and other

op¬

for the economic func¬

not, to the
sound
economic
development of
other
forms
of
transportation.
They know they could make no
valid

their

tioning of

that the railroads cannot properly

object,

with

necessary

How to Meet Unequal

with

However,

ing World War II.

Competition

charges, such costs

highways enjoy a
sub¬
stantial
competitive
advantage
tions be good or bad. Such free¬ over the
railroads which provide,
dom from financial responsibility'
maintain, and pay taxes on their
is itself a considerable advantage, own
rights-of-way. This situation
institutional in character, and one is
indicated, for example, by of¬
which
ought
not
to
be
com¬
ficial data which show that for
pounded by failure to require pay¬ the Class I railroads in the year
ment of fully compensatory user 1957
costs and taxes for right-ofcharges for commercial operations way absorbed 20.5 cents out of
on public rights-of-way.
each dollar of total operating rev¬

competitive
conditions. Their impact was sub¬
merged only temporarily by the
tremendous requirements and the
performance of the railroads dur,

user

variable

sibility to bear the costs of rightof-way whether business condi¬

the

tion has presented many problems
of adjustment to new and often

drastically

discrepancy

11.9

Railroad

1958

bear

the railroads the growth of
modes

27.0

becomes:-

property

carriers

erations,

plex, it has also created serious
problems not yet resolved.
other

the

would

Nation's total transportation com¬

these

which

greater

portant respects to the
strength and versatility

For

pensatory

im¬

many

subject to taxation

and

using tons to represent

61.0%

remaining'traffic

sions have jurisdiction, all rail¬
resisting
proposals
for
special
road. freight traffic is subject to
charges on large and heavy com¬
none
of the
costs
and
risks of mercial vehicles. Although this is¬ regulation by the Interstate Com¬
In contrast,
ownership and capital investment. sue is not likely to be resolved in merce Commission.
These
commercial
operators on this session, it may be pointed out ICC-regulated motor carriers han¬
dled only 34.1% of the
highway
public rights-of-way are free to that the user charges paid by
ton-miles in 1958 while 65.9% was
use or not
to use the facilities as heavy commercial vehicles—con¬
handled
in
their own interests and conditions sidering
privately
operated
their size and weight,
of
business
vary
from time to their large annual mileages and vehicles, by for-hire carriers
time. Even if such carriers were their unusual
operating character¬ exempt under the Interstate Com¬
required to pay their full share istics—are very low as compared merce Act, by for-hire carriers
of the right-of-way costs in com¬ with those paid
by automobiles operating wholly intrastate, or by
not

the past several dec¬
Principal
among
these
changes in the period since the
over

ades.

error

River & Canal—

the

and

ton-miles for this purpose,
owing
to possible differences in
average
length of haul as between regu¬
lated and unregulated

Highway

providing, maintaining public highways do pay certain
paying taxes on their rights- user charges, which, as would be
certain other problems,
particu¬ of-way. Except for the pipelines, expected, they vigorously contend
larly in the : areas : of transport which are specialized carriers of are adequate if not more than
a
few commodities, the tfompeticompetition and regulation.
adequate to cover their share of
Rapidity of change has been the tors of the railroads by highway, highway costs.
This has been
outstanding
characteristic
of waterway "and airway operate on their consistent position through
transportation ' in
the
United public
rights-of-way which are the years under all conditions in
tioned

Lakes, which is nearly all unregu¬
lated, the percentage distribution

$12,452.4
12,318,9
11,115.3

averaged

5.93%
Def

Cash

Dividends

3.58%

3.9

155.6

84.2

141.1

0.76

1.27

678.5

219.3

5.89

1.90

537.2

264.9

4.01

1.98

806.1

373.1

5.14

2.38

876.3

431.6

5.23

2.58

Def

11,517.8

13,402.3
15,677,7
16,759.6
16,982.1
17,122.6
2)17,222.7

;

426.5

737.4.

4.34

1.26

2.51

601.7

372.5

3.51

2.18

577.7

403.2

3.35

2.35

beginning

".'7■ •■"V"-

Interstate Commerce Commission.

and

l'.-

end

year.

Preliminary.

;

The Commercial and Financial Chronicle

(678)

Thursday, August 18, 1960

...

nomic factors railroad

transporta¬
the
new and rapidly developing other
modes do have a proper place. To

The Causes and Cure

tion is not outmoded, although

the

For the Railroads' Ills
going to be the economic and
political enviornment in which

regulation is railroad traf¬

railroad

Regulated Traffic

Railroad

Highway

conditions

the

out¬

vital

•

lined, it is evident that the rail¬
roads do not have an equal oppor¬
compete
with
other
forms of transportation which are
to

tunity

unregulated and which
operate on public untaxed rightof-way.
The
railroads
greatly
need less regulatory restraint in
pricing their services, within the
largely

compensatory rates, so
the volume traffic
essential to the realization of the

limits

attract

potential

low-cost

reluctance
industry to

any

the

technological

Empire

Los

County

now

ranks

first

population,

Sixteen counties in the United States each have
lion inhabitants, and two of these—Los

estab¬

Angeles

from

second

than

mil¬

ginian railroads was an important
breakthrough which seems likely
to foreshadow others that will re¬
sult in substantial economies in
railroad

riers

other

the

continue

bar¬

against the railroads which se¬
verely limit them in utilizing the
various transportation tools made
available
by
advancing
tech¬
nology where their combination
would result in greater economy
and efficiency and in a superior
service. In this regard there per¬
sist
of
*to

exclusion

virtual

other

10
11

—

13
•

transportation
regulatory con¬
trol. Significantly, this fear and
opposition does not come from

17
18
19

St.

when

railroads

they

utilize

object
to,
seek authorization to

other

means

transportation

tools

to perform a

complete transportation service, is
the different status accorded them
as

compared with other applicants

for operating

authority, simply on
that a railroad is a

the ground
railroad and should remain

so.

It has

been, necessary, in assess¬
ing the factors bearing upon the
future capability and prospects of
the railroads, to give attention to
the competitive inequalities and
restraints

under

roads

many

for

operating.
what

the

roads will

three from

which
years

the

rail¬

the

have been

question

capability of the rail¬
be

now

decade

two

unavoidably

sents this further

34
35
-

36
37
38

39
u.U

41
42

—

...

44
45

Monroe, N. Y.

Worcester, Mass.______
Essex, Mass
Providence, R. I.—
Fulton, Ga
Delaware, Pa._—_

47"

Tarrant, Texas

49
50
51

—

Montgomery, Ohio
Multnomah, Ore
Montgomery, PaLake, Ind.
Summit, Ohio

53
54

55
56

Norfolk, Mass.!—_—

—

Calif

;

24
27

676,579
625,816
539,139
896,615
775,357
216,224
406,349

20
108
52

551,777
396,001

539,661

500,460
503,410

276,129

545,784
331,770
504,342
290,547
558,928

40
74
31

l
'

What

St.

Not

Louis,

included

and

the

this

however,
waned

mining

and

mines

most

gun, and 1964 would be about the
same.

For several years the comhas been able to finance con-

have

been

368,152

410,032
392,308
398,138

277,140

.34
39
29
47
50
: 62

53
48

large county rankings are three cities—Baltimore,
Washington, D. C.—which are areas not included in any county.)

17%;

preferred
stock

stock,
equity,

and

32%

Share earnings made very

progress

the

first

half

little
the

past decade, increasing from $1.38
to $1<45<
In the second half, however
they increased at a better

For many years,

rate—from

4itClZr .^Vlng =been pr0cessed
year.
.

$1.45

1954

$1.82

In a recent talk before the New

last

York

Society of Security Analysts,
chairman D. C. McKee made the

The (Ozark

recreational
area
helps to attract industry and there
are excellent
transportation facil1 ties—7
railroads, 4 airlines, 10

buslmes and 20 trucklines.

trial revenues

are

following
first
to

Indus-

statements:

"For

residential, rural and
consumers

and

yeal.;

the

kilowatt-hour

quarter

cial

fairly well

now

sales

comraer-

9% over last
industrial
sales

were

total

diversified, pipelines contributing were
up 14%
Unseasonably cold
23%, chemicals 14%, food proces- weather
during
February
and

17%,

sing.

mming

17%.been

manufacturing

5%
Some

and

few

industries

200

added

last

24%,

customers

March

appears to have been responsible for some of the gain in
sales.
Hydro genera-

miscellaneous

have

residential

the

iion

increased

25%

the

over

first

including North three m0nths
of 1959 due in part
American .Aviation, Linde Comt0
increased
releases
of
water
pany (division of Union Carbide), from
Table
Rock
reservoir
upAtlas Powder, etc.
Two of these stream from our Ozark
Beach hyplants will use about 20,000 kw.dro
plant
This- resulted
on

round-the-clock basis.

jet

years

takes

about

industrial
ute

revenues

29%

about

3,000

gross

with

the

•

Tir

was

they

...

of all

have

when
zinc

contributed

mines

about two-fifths

kwh sales,

dec inedI

now

only about 2%. Fortunately, other

Su6S. have, increased 142%
ab?u the electricar!nam', ln ■
parwith
tu

whole.

we can reasonably

foreseJ^ earnings of about $2.00
per^.sh„are .for the year 1960. In

industry

good demand for

lead, these

but

of 1959....

any quarter

making this forecast,

L
During. World .War:
and

Hydro generation

believe

average

theie

iarger than

business

which

revenue,

line

amount

Total

contrib-

now

wholesale

and

in-an¬

Aero-

kw.

industry

included
jng

over

we have not
any increase in zinc minthe present, and we have

assumed average summer
temper-

atures

that

ever

assuming

are

hydr0 production, which
nied

,ast

how_

haves'normal

wi„

was

de-

tWnk u is

or reasonable to expect .that our
earnings
should
show
another
a

Since the mining sales can

substantia!

increase

1961

over

49g9 »

hardly sink much further, it seems
likely that the company should

' *•'•.

Under accounting orders of the
commissions in the states in which
e company operates, it normalditioning load and is how actively lzes deferred taxes resulting from
promoting electric heating, with accelerated
depreciation.
How-

show normal growth in the future,
The company has a good air-con-

low

rates.

"degree

There

days"

sufficient

are

this

area

make electric

The company generates most of

un-

construct

dairying was the principal farm last year and an estimated
$2.00
activity, but now poultry raising for this year
($1 91 was reported
,is also important, 35 million for the 12 months ended
May 31).

heating a profitable
operation based on load factor.

541,035
647,437
487,632
546,401
522,384
574,973
473,572
414,234
361,253
398,441
471,537
353,068

continue

necessary

common

plant),
limestone
deposits
suitable, for
marble and agricultural lime, siland timber.

generating
unit.
Capital
structure is now about 51% bonds,

deposits in the Kansas area
(from which the company obtains

ica,

new

coal for its Riverton power

570,445

bank loans this may

til

developed—

482,393
484,615

requirements with internal cash, and with the help of

are

expenditures
are
expected to average only about $3
miui0n a year during 1960-2. In
1963 this might rise to $7 million
if a new generating unit is be-

activity

pre¬
(NOTE:

question:

905,949
740,315
723,952

500,719

Haven, Conn

Union, N.J
Sacramento,

495,084

*16

Jefferson, Ky
Jackson, Mo..^;
Hudson, N. J

732,992

Orleans, La
Shelby, Tenn._

18
11

—

672,765
806,701
1,064,569
899,238
871,047
556,808
614,799

853,599
839,678
803,863
777,857
775,568
715,069
704,360
694,010
690,212
687,608
685,452
683,262
676,642
659,817
654,414
652,032
647,445
639,615
628,682
620,979
617,773
605,144
605,052
602,340
582,983
580,142
567,492
564,738
553,517
551,063
534,072
522,213
519,239
515,506
514,127
509,403
507,651
502,301

Bexar, Texas
Franklin, Ohio
Suffolk, N. Y.__

1,515,237
1,451,277

9
25

New

; ;

Oakland, Mich
Hartford, Conn

Jefferson, Ala

such

913,659

What * the

preservation

886,661

1,550,849
1,960,101
1,389,532

917,851

Louis, Mo

competition as will foster this ob¬
jective, should be the acid test.

the

Marion, Ind

Maricopa, Ariz
Fairfield, Conn.
Santa Clara, Calif

with

14-

Francisco, Calif.
Orange, Calif

proper

shippers but from other modes of
transportation intent upon pre¬
serving
their
own
entrenched
positions as a vested interest. The
public interest in economical and
efficient
transportation
service,

San

free hand to utilize

modes

without

—

considerations, although the rail¬
have pointed out that they
a

7
___

Diego, Calif
Dallas, Texas
King, Washington
Dade, Fla
Essex, N. J.
Alameda, Calif
Hamilton, Ohio
Hennepin, Minn
Westchester, N. Y._—
Bergen, N. J
Suffolk, Mass

roads

do not seek

Erie, N. Y

other

1,802,119
1,668,172
1,632,267
1,622,837
1,415,025
1,294,309
1,234,868
1,234,357
1,058,636
1,029,289
1,003,522
942,563
925,693

San

quarters expressions

some

2,435,235
2,738,175
2,071,605

^Milwaukee, Wis

exaggerated fear of monopoly
the

4,508,792

Harris, Texas
Middlesex, Mass.__

maintained

2,651,568
2,604,001
1,960,036

Allegheny, Pa
Bronx, N. Y
Nassau, N. Y._

strict

hand,

5,086,924

York, N. Y
Cuyahoga, Ohio

Stopped From Complete
Transportation Service
On

New

operations and strength¬
carriers financially.

the

Cook, 111
Wayne, Mich
Kings, N. Y

Philadelphia, Pa
Queens, N. Y

Vir- ;

the

and

Western

and

adequately loaded
and the. favorable
share earnings can

Construction

coal

trend of our
be maintained.

now
on
a
standby basis. In the
meantime, however, other natural

...

folk

it will

immediately,

struction

resources
more

Angeles County, California,
and Cook
fit
County, Illinois—each have more than 5 million in-habitants.
present-day
conditions
in
the
"
transport market and in trans- %
The Bureau of the
Census, U. S. Department of Commerce,
portation technology and organi¬
recently made public a list of the 60 largest counties, ranked
by
zation.
On the more constructive
population size, each of which had at least half a million in¬
side,
the
Interstate
Commerce
habitants, according to preliminary figures of the 1960 Census of
Commission
has
recently
indi¬
Population.
cated a more receptive view than
The following list
presents the 60 counties with their 1960 rankv
in
the
past toward
railroad
and population, compared with their 1950 rank
and population:
mergers that will promote greater
1960
economy
and efficiency in rail¬
>>';
—J 950
County and State
Rank
Number
Rank v.;; "LNumber*'«
road organization and operations.
Los Angeles, Calif
The merger last year of the Nor¬
1
5,979,203
2
:
4,151,687

concepts

regulatory

that

pany

has

own.

if another steam unit is added
several years from now, sufficient
blocks of purchased power can be
transferred to the new unit so

principal activity in its area,
it was developed principally
serve
the mining industry

II,

place in 1950, and New York County drops from sixth to seventh.

respects, also, there is
reorientation

for

another unit of their

The management is confident, that

which later expanded into Kansas
and Oklahoma.
Since World War

Changes in Counties' Population

this objective.

lished

build

•

stultifying fetish of average

other

District

rate-making, which some of
regulatory authorities
have
been
so
reluctant
to
modify,
would forestall the attainment of

ELY

Empire District Electric Company

accept
innovations and

the

need

tial

part

BY OWEN

and

cost

been

adherence

continued

service.
to the

have

the

railroad

there

tical

1.8

100.0%
Under

con¬

answers

that

Electric in 1959
modernization.
An improved en¬
celebrated
its
50th
projections based upon past
corporate
vironment for the railroads and a
trends and existing conditions are
strengthening of their earnings birthday. It was formerly a sublikely to be barren exercises with and
financial position are the key sidiary of Cities Service, but in
numbers
which
1944 it merged with three other
yield indicators factors
that Would certainly give
wide of a true mark.
utilities of that system
and the
rise to increased capital expendi¬
common
stock
was
sold to the
tures for technological improve¬
Rail Problem Is a Money One
public. The company, with revements, leading to greater economy
nues
of $13 million, serves elecThe preceding data to which I and
efficiency and to advancing
have referred point up the fact
tricity to 67,000 customers in Misscapability, both quantitative and
that the railroad problem is es¬
ouri, Kansas, Oklahoma and Arqualitative, for the future.
kansas; Joplin, Missouri, is the
sentially a money problema
largest city served and about 80%
persistent problem of financial
*From an address by Dr.
Behling to
stringency affecting the railroads the Transportation Study Group National of the business is in Missouri.
When the company was first orgenerally and some of them ex¬ Academy of Sciences, National Research
Council, at Woods Hole, Mass., Aug. 3,
tremely. In terms of basic eco¬ 1960.
ganized zinc and lead mining was

12.9

River & Canal-

Until

questions in this area are forth¬
coming, statistical and mathema¬

85.3%

—

transportation

ducted?

fic:

SECURITIES

extent

technological lags in the railroad
industry,
they
are
attributable
primarily to financial limitations
and not to waning or weak poten¬

Continued from page 29
to ICC

PUBLIC UTILITY

its

requirements

power

steam

nlants

amount

hVdro

power).

Generating
venerating
oil

hnv

Dlants
plants

with
small

Dureh^sed

and

future

imneressarv

coal

Ctherp

shouldbe
anv

can
can

nower

use
use

member

for

Pool,
the

the

which

Southwest

great

Power

value

company.

The

company now has enough
generating and transmission
capacity to carry it through the
summer

serves,

of 1962 with adequate re-

time they

tain

estimated.

ever> there-seems

that

Poses, in order to

from the Pool

trend

give

the

con-

Shouhf +L*q0 nernr^nrn*

savings

™"

would automatically be increased by about 20c a share- The
^

abouTeV3 on an original 3
aD°ut b.3% nn^n^nrivinaf cost
6-7%

with

through, it is reported.
Au

About

flow

a year ago the dividend

i?*0was raised from $1.20 to $1.36.
If

earned this

would be 68%,

year

payout

slightly below
average, indicating the possibility
or

an°ther increase in 1961 if the
uptrend in earnings continues.
1 The ' stock
has
advanced
this
,

year from 25

price

the

will either have to ob- stock sells

more power

(V110"!,
commissions to orer ^9W through for rate pur-

^ias I,ate basegas,

fuel, but gas provides about 90%; coal is obtained
from nearby mines.
Empire is a
or

to 34.

yield
at

1960 earnings.

At the latter

times

and

the

estimated

Volume

Number 5978

192

The Commercial and Financial Chronicle

MUTUAL
BY

FUNDS

ROBERT

new

(679)

July record of $10,082,000

mutual

fund

business

was

re¬

ported
by
Investors
Planning
Corp. of America. Last month was

RICH

the

seventh

straight

which

volume bettered the like month of

years.
Ht

editorial

writers,

and

turers

many

lec¬

platform

problems. Just
everybody, to hear these

field.

/about

its

gentlemen tell it, demands cradle-.

■\to-the-grave security. The Ameriaccording

people,

'can

the

•

viewers with alarm, have lost the
•

with which their
so richly endowed.

spirit

venture

•

forbears were
U

;

this

course,

hardly
which

library

Machines'
fond

cate

Tom

late

saying:
."

Business

This

like it

Watson

book

many

literature

to the

with the record,
shows that the people have
squares

of new com¬
decade while

thousands

within

munities

turning the phrase "Do It Your¬
a major industry. They
are now in the process of explor¬
self" into

ing the Great Unknown after having poured out their treasure to
succor
other nations from perils

they understood well.
while

And

they

•

under¬

were

taking these unprecedented chores,
the

people were conthe building of an

American

tributing

$18-billion "industry" designed to
give them a substantial measure
of
economic
independence.
The
assets of open

! multi-billion-dollar

and

•

investment

closed-end

com¬

panies were not attained without
considerable
risk, sacrifice and
spirit.

venture

And this

generation,

as no

other

has demonstrated an in¬
terest in learning about the intri¬
cacies
of
investment.
Indeed,
before,

this

should

fare

generation

better than its fathers in the mar'

the

ketplace,

failure will not be

due to lack of

tion

plain

education, informa¬

guidance. How else ex¬

and

towering

the

for

demand

financial and business newspapers,

magazines, books and the tons of
literature that flow weekly from
Wail Street to a generation de¬

re¬

Securities

Research

three

cents

Shareholders

not

Co.,

quickly."
*

Colonial

ended

Investors

Shares,

during

June

Legal

and

the

British

made

ties

new

addition

last

net

$13,

•

bentures,

due

decreased

before them.

done in

asset

against

value

per

$13.41

Forsch Named in

•

Hospital Drive

■

•

may

people have done business with

you once or
no

•

investment

formance

The

of management is

per¬
Net

rated

value

asset

Capital

Fund

Sinai

New

Canada,

of the
American Institute of Mining En¬

York

Ltd.

member

is the ap¬

June

Only a small per¬
investors have done

centage
as
a

well

in the

period

stock market over

of time as have
companies."

most

Interestingly enough, he
the question of
firms

averages—a
point
the funds are fond

the

market

that many

periodic

of making

reports

holders. The author prefers

Mutual

Bullock

been

dealers.

The

booklet features facts
on

the

four

funds

made

sponsored

Directors

Canada,

to put

der

distributors

Scudder

of Incorporated Income Fund and

Incorporated Investors. He will
be
wholesale
representative for
by two funds in Michigan, Indiana
and Kentucky.
of

Fund

Joins

their meeting in
appoint Scud¬
Distributors, Inc. sole
at

voted

Fund

fund.

Ltd.

Montreal

.*'■

••

now

the
v

Ga.—James M.

Company,

' Avenue.

\ '

Hill is

affiliated with The Robinson-

Humphrey

Robinson-Humphrey

ALBANY,

the

vice

assistant

figures

Calvin Bullock.
*

named

president of the Parker Corp., in¬
of vestment
manager and distributor

16-page

ana

been

Guide

Group

has

Funds"

stock¬

question this way: "Do
they beat what the - average in-.
dividual
investor
can
do?" He
the crucial

Calvin

Dealer's

"Investment

their

raises

whether most in¬
beat

available

investment

vestment

has

;

••

generalized
can

check

the

quality

holdings

was

of
in¬

and

timely subjects
before your clien¬

placed

reason

twice, and they have
be dissatisfied with

can

that

say

will

order.

■

Every time

you

helpful

.,'

do business with

your

You

Never

Know

The

From

Order

large

The

one.

starting out with
can

know

they

may

married
shares

person

small account

people
whom
The young

send to

become

can

young

other

you.

who

man

Whence

buys

few

speculative

Pine

136
•

won't

forget

growth

stock

hoping for a capital reward
the future may have a retired
mother or father who could in¬
vest substantial funds in income

you.

N. Y. Analysts Meeting
On

Friday, Aug. 19, Louis Stein,
president of Food Fair Stores, Inc.,
will address the New York

Society

of Security Analysts at their reg¬
ular luncheon meeting.

Mr. Stein will discuss the prob¬
lems and

opportunities of the re¬
industry from the van¬
tage point of Food Fair, the sixth
largest retail food chain, and one
securities. There may be a desir¬
of
the
nation's
fastest
growing
able piece of
financing that can companies in the industry.
in

directed to you

who

one

because

likes you

tail

food

some¬

heard of such

opportunity.

Since
never

people know

know where

people

you

recommenda¬

tion may arise.
I

sold

Several years ago
good bonds to a cus¬

some

tomer

who

moved

sold

his

another

house

city.

and

Occasion¬

ally I would write him and keep
in
touch
by mail.
Recently he
revisited
the
man
who
bought
his home and they began talking
about

investments.

mended

recom¬

and I received

phone call from
two

cus¬

the

over

FUNDAMENTAL

INVESTORS,

Investing in common stocks
selected for possibilities of growth
in income and capital
over

the years.

over

seen

introduced

years.

tele¬

former

tomer whom I hadn't

his friend

telephone, and

I have stepped into another prom¬

ising account which I would have
if

met

never

my
former
mendation.

hadn't

been

customer's

for

recom¬

DIVERSIFIED

Use the Mails
You

just

don't

of small accounts and
method

bined
call.

with

Quite

investment

fidence

while ago I

him
to

out

month

and

good

had

Then

the

cards.
and

it
be

card

the

sev¬

postal

them
postal

DIVERSIFIED GROWTH
STOCK FUND,

Investing for long term growth

|possibilities in securities of companies j
in many fields of scientific and
economic

development.

excellent

was

how

these

reduced

regular

surprising
on

something

pirnter

effect

said

once

photo-offsetting

The

can

this

back

This

printed

larger than

card.

them
on

cards

printer

times

con¬

the spirit moved

when

by an
dig¬

practice

He had them

say.

eral

these

stocks.

were

message.

the

common

saw some

carried

followed

sending
twice

also

com¬

A balanced investment
in bonds, preferred stocks and

phone

mailed

were

inspiring

dealer

mails,

occasional

dealer that

and

the best

the

use

postcards that
nified

INVESTMENT FUND, *

have

enough
properly follow hundreds

time to

much

cards

and

how readable they are.
Here is

When the
severe

theme for
market

decline

one

had

for

of them.

suffered

several

weeks,
this dealer pointed out that qual¬
ity
stocks
decline
with
other
stocks
stock
owned

his

weak

market.
stocks

were

and

that

among

Grew

The small investor
a

most investors.

«w*Sita

Hospital,

gineers, of the Yale Club and of
30 was $29,972,788, equal to the Broad Street Club.
$13.43 on the 2,231,212 outstand¬
proach to the question of whether
the investor should go it
alone ing shares. This compares with
Parker Carp. Names
asset value of $12.51 a share at
or throw in his lot with the funds.
Cameron Asst. V. P.
The author says flatly: "Invest¬ March 31 and $12.64 a share at
ment companies will outperform June 30, 1959. •
FLINT, Mich—Robert J. Cameron
*
*
*

by the author.
Of especial interest

•

objectives.

investor's

interest to those of your customers
who only occasionally send you

contacts

of an investor's
securities
was
adequate because
quality stocks will recover when*'
markets once again turn higher.

turn out to be valuable.

keep

day

can

offer

whether

was

quality

tele in this way and, if you think
it through, there is quite a bit you

•

the

and the
of doing this is to
alive which some¬

purpose

This

various ways

main

of Incor¬

30, 1959. Total shares out¬
standing at the year-end were
39,418, against 31,600 at the begin¬

May

regularly from

time to time and you should keep
your name

June

its holdings of

consider

not

cluded in the brief message. Other

1974, It
Atlantic
Refining by 5,000 shares, Aztec ning of the period.
termined to do for itself?
Oil & Gas by 10,000 shares, Cities
V
The
serious
minded
investor Service
8,800, Clevite 2,800, Colo¬
may have
such standard equip- rado Interstate 10,780, Honolulu
ment
about
his
home
as
the Oil
7,000, Kern County Land 12,science kitchen, the outdoor bar¬
500, Minneapolis-Honeywell 1,000,
becue and the sleek chariot, but
Sunray Mid-Continent Oil 10,000
> somewhere in his library you'll and TXL
Frederick D. Forsch, of
15,000 shares. ■
•
Lazard
\r
also probably find the educative
*
•#
Freres & Co., has been named
tools that make his money work
chairman of the Hospital
De
Vegh
Mutual
Fund,
Inc. vice
as
hard for him as he worked
reports that at June 30 net assets Trustees Division of the United
for it.
*
were
appeal.
$19,204,283, equal to $56.19 Hospital Fund's annual
To this library we would add
a
share, which includes a long- Eben W. Pyne, Chairman of the
■the 1960 edition of "Your Buying
term capital-gains distribution of Hospital
Trustees
Division
an¬
Guide to Mutual Funds and In¬
Mr.
Forsch's
appoint¬
$10.01 a share during the year. nounced
vestment
Companies,"
by
Leo This
Mr. Pyne is president of
compares with $20,723,443 of ment.
Barnes (American Research Counassets and $72.80 a share at June the First National City Trust Co.
cil, $3.95). This volume, the fifth
30, 1959. Capital shares at latest
Mr. Forsch will assist Mr. Pyne
V brought out, is worth the time and
report
totaled
341,750,
against in leading 600 volunteers in Man¬
study of the professional invest¬
284,676 a year earlier/
hattan and the Bronx in the drive
ment! counselor
and
the
man
*
*
*
A!,!- •,:!
'
toward
the
Division's
quota of
whose interest in investments is
Real Estate Investment Trust of the total campaign goal of $3,000,only newly stirred.
America and subsidiary report for 000 to help support free and be¬
:
This comprehensive work shows
the fiscal year ended May 31 net low cost care of the needy sick.
how to use
investment-company
income of $506,234, equal to
68 Last year, the United Hospital
shares
in retirement and
estate
cents a share, on gross rentals of Fund's 82 member nonprofit hos¬
planning. It deals with investment
companies as tax shelters. An.in- $3,512,274. This compares with net pitals cared for nearly a million
of $508,316, or 69 cents a share, on such
patients without charge or
sight
is
provided to kinds of
rentals of $3,291,823 in the pre¬ below cost.
investment firms and sets out to
ceding financial year.
Mr. Forsch is a trustee of Mt.
show which are best for individual
;

sional trade with you but have not
been
the
active
substantial ac¬

issue to

should be followed

had

when

two

of these

account of 11%

bonds

of
an
investment.
have had an occa¬

may

the

Total
net
assets
of
American
Goodyear,
1,300
High
Voltage
Engineering, 3,500 Leeds & North- Enterprise Fund, Inc. at June 30,
the close of the fiscal year, aggre¬
rup, 5,000 Northern Illinois Gas,
5,000 Shamrock Oil & Gas, 5,400 gated $512,473, compared with net
Stauffer Chemical and 3,000 U. S. assets of $423,656 at June 30, 1959.
A
Rubber.
non-diversified, open-end in¬
The company eliminated its 70,- vestment company whose shares
075 shares of Helmerich & Payne, are sold at net asset value, with¬
5,500 Houston Natural Gas, 5,000 out sales or commission added,
Mississippi River Fuel, 8,000 Pio¬ American Enterprise Fund at June

Gas,
48,000
San
Jacinto
and
$500,000 La Gloria
Oil & Gas 5V2% sinking fund de¬

turn

may

service, they should be con¬ someone
you are adding another
General sidered as potential sources of potential
booster
to
your
own
Ltd., both additional business even though cause. Let people know that
you
they are not steady investors.
haven't forgotten them and they

Natural

they

stocks

think

two will

a year or

before

commitment: 9,000 shares of West- porated Investors' portfolio. The
Fund is almost 100% invested in
inghouse Electric. It also reported
common stocks.
these "significant increases": 12,z>
*
#
*
700
shares
of
Beryllium, 5,000

neer

ing, then he would have some¬
thing to worry about. The main

by
again to

pass

count that warranted your follow¬

companies, foreign securi¬

now

the

not declin¬

Society,

With the

Inc.

quarter

time

same
was

ing them closely. Yet these people

increased

British.

Energy

that

reports

Ltd.,

Assurance

the

.r'

value

Electric and Prudential Assurance

can

while

asset

$8.47 to $8.63 in the second
quarter of this year. Total net

production and,
be revitalized

orders,

in turn, profits)

so,

ally. Sometimes

cents

increased

people who will

many

rest of the market

Others

assets were $306,254,746 and there
quick reversal in the
were
35,497,846 shares outstand¬
decline in general eco¬
nomic
activity.
Said
Max
E. ing as of June 30. Incorporated
Investors'
purchases during the
Oppenheimer, President: "While
business
will, in time, recover,, quarter included Florida Power &
International
Telephone
there is little reason to assume Light,
&
Telegraph, Oklahoma Gas &
that confidence
(as reflected by

expect
gradual

are

they

from

There

National

seven

net

Incorporated

Oppenheimer

warned

were

■

Per

Don't Let Them Forget
YOU !
invest in securities only occasion¬

;.:/••••

The Funds Report
Inc.

*>,

BY JOHN DUTTON

assets

Income,
both
payable
subject of vital National
community.: i Sept. 15 to stock of record Aug. 31.
! •.;/ '!;

Fund,

Growth Stocks and

founded

come

while contribution to the growing
concern

National

worth¬

net

Corp. announced quarterly distri¬
butions from net investment in¬

edu¬

and

making

are

'!«;/ !'•>'

was

"Educate,

$609,016, $12.02 a share and 50,667
shares a year earlier.

investment

International

The

place
who

everyone

in- the

stake

Investors, Inc.

June

CORNER

'. ■!::

■

$1,060,951, equal to $14.29
on
each of the 74,254 shares out¬
standing.
This
compares
with

usually

deserves

-*/

SECURITY SALESMAN'S

were

talk

kind

will

answer

volume

the

has

that

ports

the

This

solution

in favor of the funds.

generation as too
to look to government for

prone

thinks

elder statesmen is the

of this

flaying
a

exercise

favorite

*'■

International

"Educate, Educate

declining
investor

declined,

and

Hugh W. Long and Company
Incorporated
Westminster at Parker

the few that did

1 '

•

Elizabeth, New Jersey

(680)

The Commercial and Financial Chronicle

until such

AS WE SEE IT
be much

about

enthusiastic

Continued from
what

page

the

situation

President

we could very
with "area assistance."

easily make

Thursday; August 18, 1960

were

the

every

indication that

(which

not familiar with

one

all the circumstances to form

sound

judgment, but the matter in one form or another
Congress for a long time, and valid deci¬
sions and prompt legislation should not be time consum¬
ing. What the President now demands in the way of funds
has been before

to aid the distressed Latin American

countries, and author¬

ization for

making use of food surpluses to feed starving
peoples should be in about the same category.
Word

from

Washington is to the effect that farm

legislation is highly unlikely at this session of Congress,
think of its urgency. If fail¬
ure to
agree upon any program now could be construed
whatever the President may
as

indication that the authorities would

that

spend the time

must

elapse before the next Congress convenes in
prayerful study of the farm problem and be ready to come
up next year with legislation which could reasonably be
expected to bring fundamental improvement in this vexed
situation, there would be real ground for encouragement.
The trouble, or one of them, is that there is
every indi¬
cation that a Republican Administration under Mr. Nixon
would

quite

amounts after bad in this

Democrats.

The

area

money in large
would the free-spending

farmers

evidently have the politicians
badly frightened, and likely to do almost anything they
think will win votes in the
agricultural states.
Plans

and

proposals for what

the

President

terms

"assistance to older people to meet serious illness" have

long been regarded by many politicians as very effective
political lures this year. Thanks to strategically placed
conservatives in
much

the

Congress and to Administrative influence,
extravagance planned by the Democratic

leaders with the support of
organized labor in this area
has been held in check to this

writing. It is obvious that

what the

Administration wants

election year bait that the
the same time, there are

here

politicians

not

are

the

kind

fond of. At

legislators who are ap¬
parently afraid to go home without some sort of legislation
in this field. Whether the
President, obliged as he is to
struggle against a majority opposition in Congress eager
to "help" almost
anyone with much influence and utterly
callous about fiscal
prudence, can succeed in keeping any
legislation on this subject within the bounds of reason and
prudence remains to be

many

seen.

148,570,970

realize

they may not
orders to support their

until
of

have the
prediction

they're well into the month

shipment.
At

steel

the

course,

President

himself

"spender," though not nearly as reckless about it as are
his political
opponents in Congress. One of the measures
he

now

insists upon would

provide funds for large scale

outlays for assistance to the states and private institutions
of
learning, chiefly for construction of added facilities. A
proposal of this sort is difficult to combat in a day and
time when the hue and
cry everywhere is for more and
more education for the rank
and file. The trouble is that

buildings and the like
bars make

prison. What is needed is

education and

attention to

less

troubling about "fancy school build¬
ings" as one authority recently put it. Real improvement
in the education that we
give our children is a major task
which has little or
nothing to do with much of the school
construction work
taking place today. We wish we could
see
more
evidence of some
understanding of this fact
somewhere in
out

Washington—-and, for that matter, through¬

the country.

■

•'

"Area assistance" is another
political football that has
been kicked around for a

long time, and the President

still, wants Congress to
give him

bill that he

can

busi¬

because

of "area assistance" is in
urgent need of careful restudy.
Many, many public measures have tended in recent
years
to reduce the
mobility of labor. One result is that when
conditions demand the shift of
industries or

from

one

parts of them
part of the country to another, labor insists
upon

staying behind^—and expects to be enabled

to continue to
before at the
expense usually of the tax¬
payer. The cause of the rise of "distressed" areas
needs
much more realistic

well

yet had,

and

(based
tion)

fore¬

82,396

i960

that

This

was

operating rate

cars

There

*96.5%

road

and

production

tually closed down due to
of

Major changes in the rate of
production are not anticipated be¬
fore

Labor

Day,

Steel

said.

Last

week, steelmaking operations ad¬
vanced slightly more than a half
point to 54.6% of capacity. Out¬
put:

About

Production
from

80%

troit

last

district

the

ingot tons.

1,556,000

week

ranged

of capacity in the

points)

(up 2

Western

district

De¬

to 46

(down 2

points).

the

heavy
melting
grade
of
scrap
held at $32 a gross ton last week.

Export sales

supported the

mar¬

ket.

major

steel

producing

na¬

of
the
world, except the
S., made more of the metal in

the first half of
like

1960 than

in the

1959 period, Steel commented.

U. S. steel production was down
5%, while Japan showed a gain
of 40%; Italy, 30%; United King¬
dom, 28%; West Germany, 23%;
the
Benelux
countries,
18%;
France, 15%; and USSR, 9%.
A new storm is brewing over
the "Buy American" issue in the
hydraulic
turbine field, Steel's

Washington editor
The-Office

weekly

age

has

that domestic

ruled

facturers have

won

about 40%

hydraulic

government's

tur¬

the last two fis¬
*

Engineers,

Authority,

months,

bids

Valley

Tennessee

and

Rec¬

Bureau

lamation. When the

all

contracts

are

awarded, chances are strong
competitors will have

that foreign

boosted

their

the 40%

percentage
above
of the last two years.

Commercial
tanium

markets

for

ti¬

opening up, Steel said.
It's being used in the chemical

and

are

ore

processing

industries,

Auto makers have already sur¬

passed the entire 1959 model year
output
by
some
200,000
units,

hardware,
and
by
makers
of
printing
presses.
Even
several
racing

the

Indianapolis
"500" used some titanium parts.
Shipments of mill products for
January through May totaled 3,284,721 lbs., almost 67,000 lbs.
ahead of the year-ago total. Most
of it now goes to the military.
cars

This Week's Steel Output Based on

55.8% of Jan.
The

American

Institute

Automotive

Reports said.
At the end of July the 1960 model
pared

with

Ward's
model

5,568,046

said

cars

com¬

1959.

the

complete 1960
would top six million

run

feat which has not been done
since
1957
when
6,212,291 cars

—a

The

statistical

out

one

ten

said that

agency

put ebbed 17.8% under last week
model

changeover

shutdowns.
S.

manufacturers

estimated

85,155

built

compared

cars

with 103,504 last week and 72,603
in the same week last year.

Ward's

said

that

share of

duction^

General

the

week's

48.9%

was

pro¬

while

Ford

Motor Co. took 40.8% and Chrys-r
ler Corp., 10.3%. American Motors

I960
Iron

announced

Capacity
and

that

Steel

the

five days this week

while Ford's

compact facilities built

six-day

basis.

But

cars

nine

Ford

week,

Ward's said, only
Co.,
and
a
few
Chevrolet plants will still be pro¬
ducing 1960 models.
Motor

Truck volume dropped 2%

Ward's
13,615

were

Willys

built

this

run

and

Total
out

week

Electric

the

Output

Har¬

7.1%

Above

53.5%

Jan.

Aug.

of the

1960

was

equal

annual

capacity

corres¬

carriers

mon

general

more
com¬

freight

Lumber

Shipments

Were

3.4%

Below Production During
August 6 Week

Lumber shipments of 452 mills
reporting to the National Lumber
Trade

Barometer

production

3.4%

were

be¬

during the week

ended

week,
were

Aug. 6, 1960. In the same
orders of these mills
6.0% below production. Un¬
new

filled

brders

reporting

amounted to 29%

of gross

mills

stocks1.

For

reporting softwood mills, un¬
orders were equivalent to
16 days' production at the current
rate,
and
gross
stocks
were
equivalent to 52 days' production.

filled

For the
of

year-to-dat^, shipments

reporting identical mills
3.3%
b e l p w
production;
orders

5.7%

were

tion./

Compared

below

July

the

30,

above.

pro¬

were

2.6%

reporting
orders

new

Compared

1960,
mills

0.2% above; shipments

below;

new-

produc¬

.-/ v;

with

ended

were

was

1.5%

were

with

the

cor¬

responding week in 1959, produc¬
tion of reporting mills was 3.7%
below; shipments were 9.0% be¬
low; and new orders were 9.1%

below.

Business Failures Climb

in Week

August 11

Commercial and industrial fail¬
climbed to 308 in the week

ures

Aug. 11 from 269 in the
preceding week, reported Dun &
At the highest
by the electric light Bradstreet, Inc.
seven
and power industry for the week level in
weeks, casualties
exceeded considerably the 269 oc¬
ended
Saturday
Aug.
13,
was
curring in the similar week last
estimated at 14,622,000,000
kwh.,
according to the Edison Electric year and the 262 in 1958. There
was
also a marked
Institute.
upturn from
Output was 87,000,000
The

amount

kwh.

below

that

week's total of
but

showed

kwh.,

electric

energy

the

14,709,000,000 kwh,
gain of 974,000,000

7.1%

comparable

above

that

the

1959 week.

Freight

Car

Loadings

the

week

11.7%

totaled
tion

62,070

wide
but

4.0%

freight for
Aug. 6,
1960,

revenue

ended

594,329 cars, the Associa¬
American Railroads an¬
cars

was

11.7%

increase of
above

the

week
in
1959,
affected by the nation¬

strike

the

decrease

below

week in 1958.

the

steel

24,875

247

252

the

in the previous week

and 226

year ago.

jumped to 40 from
ceding week, they

corresponding

the pre¬

were

slightly

below the 43 of this size last
year.

Thirty-eight of the failing busi¬
nesses

had

$100,000

liabilities in

against

excess

the

preceding week.
Wholesale
Over

industry,
cars

total

While small casualties,
those with liabilities under
$5,000,

Greater Than in 1959 Week

Loading of

pre-war

comparable week of 1939.
Failures involving liabilities of
$5,000 or more rose to 268 from
a

which

utilization of the

the

ended

corresponding

ginning

volume in

distributed

compared with the actual levels of
*94.9% and 1,525,000 tons in the

tonnage in the
August 6, was 1.7%

Ended

1959 Week

nounced. This

begining Aug. 8.

truck

reflects tonnage handled at
than 400 truck terminals of

vacation.

op¬

Actual output for last week be¬

Tonnage

Week

while

International

were

this
units

13,894. Four Chev¬

lines

model

vester

said.

vs.

rolet; truck
1960

and

These finding are based on the
weekly survey of 34 metropolitan
areas conducted by the ATA Re¬
search
Department. The report

phased out 1960 output this week.

week,

com¬

ago

1% behind the previous
this year—off
0.3%.

duction

erating rate of the steel com¬
panies will average
*98.9%
of
steel capacity for the week, begin¬
ning Aug. 15, equivalent to 1,589,000 tons of ingot and steel castings
(based on average weekly produc¬
tion
of
1947-49). These figures

week

less than

week

Ford

year

Truck
6

ended

Oldsmobile and Cadillac divisions
Next

one

ponding week of 1959, the Ameri¬
can
Trucking Associations, Inc.,
announced.
Truck
tonnage was

low
U.

1958.
S. rail¬

corresponding week of

below the

produced in
Aug. 13 was 1981

vintage. However, the week's out¬
to

week

cars

the week ended

due

throughout the country.

built.

were

the

was
1.7%
Corresponding 1959 Week

1947-49.

1959 Production

5,780,263

period

Class I U.

Aug.

Below

and pulp plants, for marine

paper

aver¬

plants, four Chevrolet plants and

.
.

two

have been opened on six big gov¬
ernment contracts by
the Corps
of

foreign competition and Studebaker-Packard Corp. are
still down for changeover.
security reasons,
'
that, foreign manu¬
Some assembly plants worked

national

Because

already

producers can't get

relief, from
for

Defense

the

Intercity

totaled

above

strike

Output Already More Than
200,000 Units Compared With

Ward's

1960

the current week

Intercity

for

35.3%

with

union.

production

increase of

1958.

vir¬

was

Auto

Motors'

reports.

Civil

Mobilization

steel

industry

pared

For

tions
XL

the

*Index of production is based

run

Steel's price composite on No. 1

All

time

*20.0%.

weeks

systems originating this type

month's.

that

tons,

week.

were

321,000

first

corresponding

1947-49 weekly produc¬

was

1958

corresponding period of 1959, and
170,489 cars or 117.1% above the

study than it has

week's

that "capacity

the

traffic

con¬

scientiously sign. That anything really sound in this area
can or is
likely to be worked out before Congress adjourns
is very,
very doubtful. In point of fact, this whole
concept

30,

total).

totaled 316,063 for

1,550,000 tons. A year ago the ac¬
tual weekly production was placed

make education than iron

this

A month ago the

centers,

slow

for

based

Estimated

the

plant vacations, but it's believed
that
shipments
have
bottomed
out. It's hoped August sales will
be 5 to 10%
higher than last

cal years.
In the last

reality

percentage
cast

jtons.

net

55.8%.

«.

been

has

ness

service

July

Cumulative piggyback
loadings

for

Continued from page 5

bine business in

"Spender," Too

revenue

included

over-all

above

STATE OF TRADE AND INDUSTRY

reported

(piggyback)

ended

were

cars
more

trailers

week

below
■

increase of 3,603 cars or
46.7%
above the
corresponding week of
1959
and
6,044 cars or 114.6%

the

;

11,317

one

Aug. 6

3.2%

ready to throw good

highway

week's

cumstances, it is advisable to continue with this sort of

for

were

loaded with

projects that have been under discussion.

week of

cars' or

preceding week.

There

of the

give-away—at least without greater effort to see to it that
supplied are used to better advantage—it is difficult

19,907

Congress will "play politics" to the hilt
until it feels it safe to
quit and go home. Such a course, as
disgusting as it is, would do much less harm than some

any clear indications of a
of the country at many

funds

.Loadings in the

•

bad

Now, the truth of the situation is that there is

could find among his recommendations
full understanding of the needs
points or any measures which
could reasonably be expected to fill those needs. The
President's concern about funds for the Mutual Security
program is certainly not new. As to whether, in the cir¬
saying if only

study is made

worse

Food

Year
v

Although

Ago

Price

for

Index

First Time

This Year

unchanged

from

the

prior

week,

Price

Index, compiled by Dun &

the

Wholesale

Food

Volume 192

Number 5978

Bradstreet, Inc., exceeded
the

that

The Commercial and Financial Chronicle

he expects to put on a very nice ice show for the

corresponding 1959 period this

week

first time this year.
On Aug. 9 the index stood at
$5.98,

0.8% from the year ago $5.93.
Commodities quoted higher this

week

were

wheat,

coffee

ter,

Lower

The

Dun

Wholesale

Price

pound

cost-of-living

function

trend of food

index.

show

Its

the

outdoor
All

chief

general

N. S. T. A. CONVENTION AT SUN

Word

comes from
Claire and Sid Sanders (Foster & Marshall,
Seattle) that the Idaho resort is all set to welcome the National

June

15 the index

(well
fiiiiisiiiiiiis

the

year

and

stocks

were

.'•■Vv''-

fractional

rv4**'

increase

corn

prices occurred, despite prospects
that the second largest crop on
record is likely. Current offerings

light and buying

steady.

was

prices slid down somewhat
and
trading was slightly lower.
Although reports indicated that
the soybean crop would be close
to
a
record,
transactions
were
sustained at high levels and prices
were
slightly
above
a
week
earlier.

Trading
in
flour
picked
up
noticeably at the end of the week
and
prices
finished moderately
higher than a week earlier. There
scattered export sales
Vietnam, Japan, Saudi

some

of flour to

Arabia

and

moved

Cuba.

While

Volume

somewhat dur¬

ing

the week, prices were
tionally lower. A sizeable
rice

for

this

General Chairman Ed Welch, the Seattle
couple (who have vacationed at Sun Valley for many years and
are
well acquainted
with the personnel and facilities of Sun
Valley), report that the finishing touches are almost complete for

com¬

made

was

under

the social

part of the National Security Traders Association's 26th
convention, scheduled to begin Sept. 11.
Advance

jority

reservations

indicate

usually

Entertainment

Chairmen

"V :."

preciably

this

week

The golf course
as

playing

Taylor Patten

ever.

lambs

finished

was

ap¬

and

earlier.

steady

Trading
and prices

unchanged.

Cotton

prices

drifted

Retail Sales Match Good

1959

Week

late

clearance

Diehl

Los

(Paine, Webber,

sales

the

prior
Au¬

gust 10, and overall retail trade
matched that of the similar strong

The buying of
floor coverings and

furniture,

ago.

& Curtis, Los Angeles)

Jackson

(Bingham, Walter & Hurry, Inc.,

at the helm, assisted by Mrs. "Shorty" Cayne and

Myrtle Parsons.

Better be on hand for this one; or better

yet, take part in it.
tennis

The

serious)

are

affiliate

will

hand

assist the

icle."

tournament

(serious)

competition

and

(non-

ensembles

are

putting

Year-Book

Johnson, Sun Valley ice skating pro, just reported

National

The

Security Traders Association,
throughout the United States, has
lowing slate of Officers for 1961: •
President: Joseph

following percentages: New Eng¬
land,
East
South
Central, and
Mountain +1 to +5; West North
Central and West South Central

+3; Middle Atlantic, East

Pacific Coast
South Atlantic —5

Central,

+1;

and

to —1.

that

show

1960,

1st Vice-President:

Baltimore, Md.

the

4,700
fol¬

;

Co., Philadelphia,

Chas.

Bodie, Jr., Stein Bros. & Boyce,

;

•*.

Vice-President: Earl L. Hagensieker, Reinholdt & Gard¬
St. Louis, Mo.
Secretary: Allen L. Oliver, Jr., Sanders & Co., Dallas, Texas.
Treasurer: Homer J. Bateman, Pacific Northwest Co., Seattle,
Washington.
The election of Officers will take place during N. S. T. A.'s
2nd

ner,

Annual

Convention

held

this

from Sept. 11th to the

year

14th, inclusive, at Sun Valley, Idaho, at which Edward J. Kelly,
Carl M. Loeb, Rhoades & Co., 1960's President, will officiate.
STANY BOWLING SEASON
The

Security Traders

Association

New

York

Bowling

season

will start Sept. 8, at the City Hall Bowling Center, 23 Park Row,
New York. Those interested in participating should contact Sidney

Jacobs, Sidney Jacobs Co., Chairman, or any of the following cap¬
tains: John
S. Barker, Lee Higginson Corporation; Stanley E.

Dawson-Smith, Cruttenden, Podesta & Co.; Joseph F. Donadio,
Sidney A. Siegel & Co.; Raymond C. Forbes, Shearson, Hammill &
Co.; E. Michael Growney, Gregory & Sons; Wellington Hunter,
Wellington Hunter Associates (Jersey City); Wilbur Krisam, John
C. Legg & Company; Herman D. Meyer, Schweickart & Co.; Lewis
H. Serlen, Josephthal & Co.; Stanley R. Shaw, Josephthal & Co.;
Robert Topol, Greene and Company; Roswell J. Yunker, A. M.
Kidder & Co., Inc.

Bowling Co.

Bowla

from the like

the
an

period last

year.

preceding week for July 30,
increase

reported.

was

For the four weeks ended
no

change

Aug. 6,
The Jan.

reported.

was

1, to Aug. 6 period showed

increase.

''According
sales

New

week

ended

above

the

Federal

department

System

serve

York

City

Aug.

period

Re¬
store

for

were

last

tne

1%
year.

In the preceding week ended July
30, sales were 4% above the same
period last year. For the four
weeks ending Aug. 6 a 5%
in¬
crease

was

reported

over

the 1959

there

Nationwide Department Store

From 1959 Week

store

sales

the

was

level

period.

gain

achieved

of
in

6%
the

above
1959

chase

one

common

warrant

and

American

Bowla
Bowla Corp.
in the acquisition and
operation of modern bowling re¬

Inc., on
units of
Corp.
stock

unit

common

stock pur¬

priced

$6.50. The offering marks the first
public sale of the company's com¬
mon

stock.

Each

warrant

will

entitle

the

holder, for a five-year period
from July
19, 1960, the date of
the prospectus, to purchase one
share of common stock at $3.50
during the first year, $4 during
the second year, $4.50 during the
third
year,
and $5 during the
fourth

and

fifth

years.

Net proceeds from the

financing

for the purchase of equip¬
Newark motion pic¬
now being converted
into its new bowling center and
for its proposed center in Queens,
N. Y. The balance of the proceeds
pany

ture theatre

creation

ings
for

centers

which
other

were

leased

build¬

formerly

used

and which
were converted by the owners to
the
company's
own
plans and
specifications. The company's first
center

purposes,

located

Bergenfield,

N. J., and was formerly a skating
rink and a warehouse in a build¬

ing which

was formerly a motion
picture theatre. It also operates a

modern

center

the

Crown

Heights section of Brooklyn, and
intends to expand its operations
with a bowling center in Newark,
N. J., and a fourth center in

Flushing, Queens, N. Y. In addi¬
tion the company is presently ne¬
gotiating with a motion picture
chain for the conversion

of addi¬

tional theatres into modern bowl¬

will initially be used by the com¬
ment for the

working capital

is engaged

Bowla

two shares of

stock and

poses.

Hill, Thompson
Thompson & Co.,
15 offered 60,000

added

of the company and will be avail¬
able for general corporate pur¬

Units Offered by

decrease

period, and from Jan. 1 to Aug. 6

Sales Down 2%

Department

E. Smith, Newburger &

Regional estimates varied from
the comparable 1959 levels by the

consisting

Pennsylvania.

Hill,

—1

"Chron¬

fine support.

nominated

members

American

was

of the

issue

NATIONAL SECURITY TRADERS ASSOCIATION

Aug.
linens

Convention

will be

Wednesday.
Hans

Official

N. S. T. A. salutes Mr. Fox for his very

four

Fashion Show, and Mrs. Helen
Mrs. John O'Rourke are working up some real dreamy
for the boys to look over at the joint luncheon on

ladies

Burke and

F. Fox & Co., Inc., New York City, has renewed
advertisement in the National Security Traders

all set, and Bill Gregory, III (Gregory & Sons, New

York) advises contestants to sign up early, as there are only
courts and he wants to complete the play-off in four days.

ing
equal
that
of
period in the week

year

can

arrangements for the bowling tourney. All that is
participants to sign up upon arrival.
amateur Ice Skating Costume Party promises to be a

Angeles)

North

equipment

left is for the

—3

week

convention, the
very
competent

has completed

promotions helped consumer buy¬
ended

page

moderately from country-wide basis as taken from
common stock and common
last year, while interest in major the Federal Reserve Board's in¬
j;;
warrants.
Each
dex for the week ended Aug. 6, purchase
appliances and men's apparel was
consists of

Pleasant weather in many areas
some

year's

golf

Remember,

arranged.

program

Bob

moder¬

163,000
bales,
against 17,000 last season.

and

this

beautiful emerald green, and just as lush
(Blyth & Co., Seattle) has an excellent

down
somewhat.
Volume
in
ately lower this week. According
women's apparel and new passen¬
to the New York Cotton
Exchange
Service Bureau, exports of cotton ger cars was steady.
The .total
for the week ended last Tuesday
dollar
volume
of
the week ended
amounted to about 135,000 bales, retail trade in
compared
with
118,000 a week August 10 was from 2% below
earlier and 13,000 for the similar to 2% higher than a year ago,
1959 week. For the current season according to spot estimates col¬
through Aug.
9,
exports
were lected by Dun & Bradstreet, Inc.

estimated

for

rented, including electric carts.

The

noticeably

week

this

guide's fee is $15 for a single person, $20 for two and $25 for three.
Hunting and fishing equipment (guns, etc.) can be rerfted at The
Valley.

was

prices
from the
prior period; a moderate rise oc¬
curred in hog ^supplies. A frac¬
tional dip occurred in prices on
Steers, while volume remained
down

August,

Trading in hogs slowed

half

ma¬

For fly fishing and dove hunting enthusiasts, Hugh Schlicting (Wm. P. Harper, Seattle) has everything ready. Participants
can
sign up on arrival, secure a hunting license (fee $20), and
reserve a guide
(fee $10 per day for one person, $15 for two and
$20 for three).
Fishing licenses are $10 for four days, and the

Mrs.

week earlier. There

The

couple have enlisted the aid of some
people to chairman the various events planned for the participa¬
tion and pleasure of those heading for Sun Valley.

The

slight dip in cocoa prices, re¬
flecting a slackening in trans¬

received

Seattle

week.

large attendance.

are

prices finished unchanged from
the
prior period. Coffee prices
slipped, but volume remained

were

the local

Present plans are for the visitors to leave Seattle for the East
Monday, Sept. 19.
:'-r:

should prove to be a banner year.

whizzer, with Bill Zimmerman,

actions.

contingent, expected to arrive Friday night, will
in Saturday and Sunday at the Seattle group's
Room" located on the same floor as their hotel

check

Association

Working

sugar trading slack¬
ened towards the end of the
week,

able

his

frac¬

Although

close to

cocktail

P. Fred Fox of P.

Oats

India

Association,

JOINS HALF PAGE CLUB

lagged

mitment

day for those going to

making arrangements for golf, sightseeing, fishing and
water tours, as well as the football game on Saturday.

export purchases of

during the week, and, de¬
spite light receipts, prices edged
up
fractionally. In contrast rye
prices were down appreciably as

rice

gala

visitors in

wheat

were

17 promises to be

their small membership and their tremendous
"go-go" attitude), has planned a real welcome for the

Members

corresponding

slight rise in both

domestic and

were

Valley.

known for
and

"Hospitality

hides.

There was

reservations, please do so now.

accommodations.

oats, coffee, hogs, steers, cot¬
and
rubber
offset gains
in
flour, wheat, corn, lard,
butter

buying
ample.

your

at Sun

sun

The national

earlier

Lower prices

ago.

Sun

that

remember

reception party, dinner and dancing have been
Saturday night, Sept. 17, beginning at 7 p.m. in the
Olympic Hotel's Olympic Bowl. Dress will be informal.

rye,
ton

and

haven't sent in

you

Monday, Aug.
267.87, com¬
week

should

scheduled for

the

and
267.35

convention

visitors.

stood at
a

the

Plan to have fun in the

drive

year

the

268.14

277.24

and

the

since

1950.

pared with
date

attend

Seattle after the N. S. T. A. Sun Valley convention.
The host group,
the Seattle Security Traders

the Week

for

level

29,

who

Saturday, Sept.

low

new

lowest

activities.

SEATTLE TO HOST TRADERS AFTER SUN VALLEY

Wholesale Commodity Price Index
Hits New Low for the Year

Traders group.

prices at the whole¬

The Daily Wholesale Commod¬
ity Price Index, compiled by Dun
& Bradstreet, Inc. fell to 267.52
(1930-32=100) on Friday, Aug. 12,

pretty cocktail dress for the cocktail parties, dinner and dancing.
The men wear either a business suit or dinner jacket, at their
option.

VALLEY

sale level.

During

Valley is a fun resort (Western style). Casual dress is always the
vogue in the daytime.
For evening, the women usually wear a

rep¬

total of the price
31 raw foodstuffs

sum

and meats in general use. It is not
a

NOTES

Inc.

Index

po¬

Bradstreet,

Food

the

resents

per

N ST A

hams, but¬

cottonseed
oil.
wholesale price were

flour, corn, oats, sugar, cocoa,
tatoes, steers and hogs.

The

and

rye,

group's entertain¬
Tuesday evening.
L
foregoing are just a few of the things scheduled for the
enjoyment of the delegates and their wives. There are chair lifts
rides up Baldy
Mountain, badminton, horseback riding, bicycling,
dancing and bridge games in the Redwood Room, among other
activities.
Two pools are available for a refreshing dip after the
ment

for the

(681)

ing centers.
Upon completion of the current

financing, outstanding capitaliza¬
tion of the company will consist of
$204,677 of sundry debt; 295,014
shares of common stock, and 100,806 common stock purchase war¬
rants.

The Commercial and Financial Chronicle

(682)

J. A. Hogle
Offers Campbell

BANK AND INSURANCE

conservative

assets

invested

yield of 3%

rate.

Machine Common

STOCKS

BY LEO

has

BURR1NGTON

Due

enjoyed

Thursday, August 18, 1860

investment

sizable

policy

followed

with

most

earnings investment income
further gains are expected for

plowback

consistent growth;
■••'.'v:.'A,:"'-'-

1960.

tax-exempt bonds. At the recent price of 46,
obtained on the present annual $1.40 dividend

•

The management of Western Casualty through its experienced
Public

offering of 102,500 shares

ability to adapt policy to the ever changing insurance under¬
writing business has not only achieved growth but has been
exceptional in being able to do so at profits considerably above
most other multiple line insurance companies.
Today Western
Casualty and Surety Company has advanced to a position among
the top 50 stock
fire-casualty groups in the nation,
a"

of $1 par common stock was made

Aug.

This Week

price of $7 per
share, by J. A. Hogle & Co. of 132
on

South

Main

Utah, for

St.,

Salt

Lake City,
account of selling

the

stockholders.
The

company

;

•

incorporated

was

Insurance Stocks

—

THE WESTERN CASUALTY AND

SURETY COMPANY

Provisions for broadening

the capital funds base are typical for
growth oriented companies. On Juiy 26, at a special meeting, West¬
ern Casualty's stockholders
gave their approval to a recommenda¬

in California

tion for

its

one

on Aug. 3, 1954, with
principal .office located at the
foot
of
Eighth St.,- San Diego,

Calif.

The

conducts

company

business which

shipyard

consists

of repairing and maintaining U. S.
Navy and commercial vessels.
The

capitalization of the com¬
pany consists of 200,000 shares of
$1 par common stock, all of which
authorized and outstanding.

are

Auto. Cafeterias

Common Offered

Ray B. Duboc, Chairman, stated the company has
plans for issuing the additional stock.
Interest

Public

offering

Automatic

dustry, Inc.
price of $3

41,848

Cafeterias

shares
for

In¬

stock at a
per
share is being
made today by Richard Gray Co.
Net proceeds from the offering
will be used by the company to
purchase
additional
equipment
and for working capital.
The company is engaged in sell¬
ing coffee, soda, milk, ice cream,
cigarettes and other merchandise
through automatic vending ma¬
common

mately, if at all. Stockholders of Western Casualty, on the other
hand, have reason to be confident that any action to be taken
will again be a forward step in the interest of shareholders. They
are
well acquainted with such factors as the sizable
ownership
of

stock

by management and the superior growth record of the
company.
•.V;
'/";.V V,-.'"'
;.iv.":
During the 1950s, stock dividends of 15% in 1950, 25% in
1952, and one share for each nine held in 1956 were paid.
Subscription rights offerings included 150,000 shares in 1954 and
1953.

the

ended

Feb.

29,
1960, the company had net sales
of $414,335.
year

Gregory-Massari
Coast Exch. Member
Election of Robert N. Gregory to
membership in Pacific Coast Stock
Exchange representing the ninth
new member to join the Exchange
in 1960, was announced by William

Jones, Board Chairman.
Mr. Gregory's
membership was
acquired through a purchase of a
membership in the Los Angeles
Division.

firm

will

represent

the

Gregory-Massari,

headquartered
at
326
South
Beverly
Drive,
Beverly
Hills,California, recently organized to
conduct

general securities busi¬

Officers

ness.

Robert

are

Gregory, President;
George W.
Gregory, Vice-President;
Paul
Massari, Vice-President; and Ray¬
A.

mond

Yarcho,

Treasurer.

;

With

Secretary/

the need for

of stock fosters entrance into additional insurance
fields, is through

rights offerings, is declared as stock dividends, or is employed to
bring about more direct ownership. Western Insurance Securities
Company, a holding company, owns over 51.1%
of Western
Casualty's present stock.
Officials

50th
the

Western

anniversary
to

successor

1910.

C.—John

The Western

Inc., Liberty Life Building.

Anderson
&

was

formerly with

Co.

offices

are

Fire

LODI, Calif.—Dave

ton

Casualty is-,
beginning in..

its

automobile specialty company providing

Protection," Western Casualty branched out in the fire w
general casualty and surety lines. Today about 4,100 agents
represent the company. Although underwriting is concentrated
in the Middle West, the company is licensed in some 37 states.
The leading states of Missouri,
Illinois, Michigan, Kansas, Minne¬
sota and Texas accounted for over 50% of
premiums written in
1959.
Southern states and Western states as a
group - each ac¬
counted for about 17% of total volume.
Branch offices, claims
offices and general agencies are located in 24
states, with city
locations at Chicago, Columbus,

Davenport,

the

staff

R. Benson has

Beckman

Company
Company.

and

First

Cali¬

Our Mid-Year

Selected

Written*

I960**

millions

**Six

months.

fLosses

^Expenses

$29.3

62.317

59.9

35.8

54.889

67.0

36.8

52.637

61.7

37.2

,/• 1.1

30.440

47.971

55.0

37.3

.7.7

basic

some

economic

with

variables

other

inputs of a
general nature concerning the in¬
dustry and the economy should
give us some confidence in a short
projection
sales. We

range

factory
that

supposition

cerning

and

the

electronics

readily
rests

admit

$23.4

and

During the first six

premiums earned

increased

million

respectively for $28.8 and $21.8 million
Although the loss ratio increased slightly
to 61.4%, the expense ratio was
significantly lower

versus

36.4% to register

profit margin gain from 2.6%

months.

diversification in other lines.
Leading property lines
physical damage, fire and allied lines; auto¬
mobile liability, liability other than
auto, and workmen's com¬
pensation are the major casualty lines.
include automobile

considerable

operate

losses.

The

interest

profitably

lines

answer

how

recent

which

Western
years

have

suffered

Casualty has been
while
the

has

worst

heavy

industry

be found in the flexible policies followed.

can

Its

underwriting success is due to independent rate filings in
most lines, the confinement of business to
favorable territories,

close concentration

selection

individual risks—not

only by
policies
for sale along with attractive commissions. Another
policy is the
settlement
of
claims
promptly in order to avoid litigations
whenever possible.
The strong growth in premium volume has
developed along with careful expense control. The company was
class, and

the

first

its

aid

the

agents

Middle

West

... ..

1955

1949

...

install

Investment

Price Range

low

premium

electronic

equipment for

Income

Earnings

46—41

Anproximate
Divid.

Book Value

$1.40

47—35

$2.25

$4.60

47—30

2.19

4.74

1.20

48.14

33—28

2.03

—0.77

1.20

40.02

36—27

1.79

2.00

1.17

42.61

1.69

5.32

1.08

41.68

N.A.

T.07

♦Adjusted for stock dividends.

3.95

"0.56

Outstdg.*

600,000

1.30

37—29

$51.41

22.66

600,000
500,000
500,000
500,000
450,000

319,444

military

about

This

1965.

$68.5

would

spending

billion.

continuation of the

based

the

put the

figure

Given

•

too,

of growth

rate

towards

effect

that

eco¬

difficult

than

physics.

(1) Let
tional

begin with Gross Na¬

Product.

From

recent

study undertaken for the Joint
Economic Committee by James W.
Knowlesand
Staff*

thethe

use

Committee

"middle

jection" of annual

rate

pro¬

GNP

growth of 4.35%.

military

allocated

1959
from

"potential"
1959

tal

GNP

annual
in

rate

from, 1959

1965

Table

war.)
I,

the

approximately

resistors

ten

segment

examination

that

total

should

total

av¬

elec¬

1965!

find

consumer

■

Restrictions

looks like this:

Total-Electronics

Factory

Sales *

(In

billions

Consumer

note

consumer

vV^ -v:?/

v-:*■

and

1965 electronics
factory;
picture that emerges from
techniques
employed
here

the

current

2.67

rived

from

sales figure de¬

Indeed,

the

about

have

obtain
we

con¬

used.

fidence-in

GNP

several

would

with the method

expenditures have constituted, on
the average, about 65%
of total

18.27

GNP and that derived

most unusual

currence

discrepancy-

summation of

segments.
been

1.50

...

between the total

from

10.00

Evidently there is

4.10

____

Military Products
Replacement Parts
Total

dollars)

Products

Industrial Products

total

this

(2) Turning next to the
electronics

to¬

The

sales

$685

Assuming a con¬
trend, the ratio
would reach 2.5% by 1965 giving
us a
total electronics sales figure
of approximately $17 billion.
of

billiQn

factory sales for
about $1.5 billion.
III

years.

tinuation

$10

9.5%

Recapitulation

reces¬

electronics factory sales to GNP
has been rising at a rate of about
l/10th of 1% annually over the

past

the

and

about

tronics

This

may

ratio

procure¬

15%

(5) Replacement parts, such as1
tubes, semiconductors, capacitors,

ex¬

the

of about
no

electronics

approach

for

1965.

(Assumptions:

are

growth

dollars

current

approach

actual

the

1965.

in constant

use

gradual

will

ment

level of

from

derived

which

push button missile war¬
fare, my view is that the portion
' of military spending that will be

erage

4.7

electronics

(I took the lib¬
erty of averaging their 4.0 figure

the

over

would

give

billion

for

past

decade.- This

figure of about $445

consumer

spending in

1965. From the data in Table II

that

see

total

the

proportion of their
spending which consumers

allocated to

inclined

have

con¬

the segment
total of
billion than in the $17
billion figure. On the other
hand,
I am disinclined to
ignore the first

$18

figure altogether. Hence

my prog¬
nostication of 1965 electronics fac¬

tory sales must be stated in terms

electronics goods has
averaged around .06%. Multiply¬
ing .6 by $445 billion gives a fig¬
ure
of $2.67 billion for consumer

represents

electronics spending in 1965.

85-95%.

(3)

equipment ex¬
been, strangely
enough, remarkably stable over
the past ten years, when viewed
as
a
percentage of GNP—they
have

6% of GNP three times and

seven

times. The decade

aver¬

of $17 billion to
6% spread). From

range

billion

$9.2

billion

Now

Industrial

penditures

Statistics

Total

even

i.e., mutually agreed upon and en¬
progressive
disarma-'
ment, I look for U. S. military
spending to take about 10% of our

were

Per

...

providing

paper work.

Approximate

1960

of-

climate,
change for the better,

GNP

many

continuation

forceable

gives GNP in

Given

the present world political

Planck,

from

written.

predict.

nomics

period

earned.

premiums

nature, the most difficult tol

very
*

expressed by great
mathematical physicist, Max

sion;

premiums

equipment ex¬
1965 for a total of

(4) Of all types of spending/
military expenditures are, by their

total

opinion

billion.

total

pre¬

take comfort in

con¬

conjecture

behavior

variables, but
the

procedure

our

pected

growing

1956

4.3

—3.8-

lines accounted for 37% and casualty lines
the remainder of total premium volume.
Automobile volume has
been gradually*reduced to less than 54% of total
premiums due to

...

Specialists in Bank Stocks

The relationships
developed above among the
major electronics segments
and
we

combined

10%

penditures by
$4.1 billion.

help reduce uncertainties

tion factor and

40.545

for the initial six

... ..

Teletype NT 1-12U-49

in¬

minimum.

continuation of the vigor shown

by this segment over the past ten
I venture to predict that',
electronics equipment will consti¬

econ¬

4.4%

For 1959 property

1957

Bell

therefore

business

3.6

June 30.

61.0%

1958

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

34.2%

37.607

incurred

and

viembers

Exchange

omist to

it
the

35.3

Company growth is continuing in 1960.

Laird, Bissell 8 Meeds
Members American Stock

tute

61.4%

:v Margins

33.421

months net premiums written

1959

Exchange

and

cumbent

61.1

73.773

Ratio^

incurred

Year

New York Stock

planning

Projection

years,

(1954) dollars, and our
figures are in current dollar terms,
I will add 1.65% as a price infla¬

33.655

1955

BANK STOCKS
Request

is fraught with hazards, some
pro¬
jections must, of necessity, be em¬
ployed by management in forward

data.) Since these calculations
Profit

39.323

1956

processing

and

37.070

1957

♦In

Expense

Ratiot

$76.1

44.987

43.6C0

Loss

Assets

/■

$23.4

49.101

1958

Admitted

Earned*

$29.3

1959

Los

■

Net Premiums
Year

City,

Statistics—Growth and Underwriting Control

LEADING N. Y. CITY

Available

Continued from page 15

calculated

Kansas

Angeles and St. Louis included.

representation

Earnings Comparison of

!*0

had

and

able

Company, 11 South Church Street.
He was
formerly with E. F. Hutfornia

company's

Insurance

its start

From

(Special to The Financial
Chronicle)

joined

that

the

Western

Company was organized. Executive
maintained in Kansas City, Mo., while the home office
Fort Scott, Kan.
:/-v'/'•

remains at

to 4.4%

Joins Beckman Staff

•

association

1960

that

present company was chartered in Kansas as a stock
company in 1924. The following year, the wholly-owned affiliate,

at 34.2%

Anderson Jr. has joined the sales
department of McCarley & Com¬

Bache

mutual

designated
the fact

The

from

(Special to The Financial Chronicle)

Mr.

have

due

year,

for the first half of 1959.

McCarley Co.

CHARLOTTE,

pany,

stock split occurred

one

time, strong growth in premiums written calls forth
strengthening the capital funds base, whether issuance

new

A two for

"Pioneer

chines.
For

may

100,000 shares in March, 1959.

Gray

Sales-

immediate

be unduly aroused by stock investors gener¬
ally about how such additional shares are to be employed ulti¬

Via Richard

increasing the company's authorized $5 par value stock to
million shares from the 600,000 shares currently outstanding.

the

plicit

1959,

economic

this

purist will
complete

demand

assumptions
as

$18
the

increase in sales of

undoubtedly
set

total

well

the

econometrician

the

lack

both

ex¬

implicit;

will

bemoan

sophistication of the
"estimating equations" and of the

variance
considera¬
believe, be absence of
impetus of tions; the electronics manufacturer
the automation drive in the 60's. will, like Gigi's
friend, gaze in¬
This ratio would produce a level credulously at the adolescent
of $41 billion for industrial equip¬
grown
to young adulthood,
and
ment
outlays in,, 1965. Assuming
age of 5.3
raised to 6

should,
under

the

some

♦"The
the

Potential

United States"

Economic

Growth

by James W. Knowles

with the assistance of Charles B. Warden,
Jr., Study Paper No. 20 "Study <*f Employmcnt, Growth, and Price Levels," for
consideration

the

Committee Congress

Joint

Economic

of the United States.

potential

investors

tronics firms will be
at

not

finding

any

elec¬

disappointed

"tips"

this

analysis. To all of these (with the
emphatic
my

exception

investors)

only reply is "wait and see."

Volume

192

Number 5978

The Commercial and Financial Chronicle

(683)

NEWS ABOUT
_

Island,

K A
\ li V
XJXxXN -LVO

A ATTl
[\ J_7

T3 A \TT/ Tr DO
l)n [y l\ Pi ILIJ

111.,

announced

A
Consolidations

New

•

Branches

New

•

Offices, etc.

Revised

•

charter has been issued by the
Office of Comptroller of the Currency
to
the
May fair
National

capitalizations

Commenting

the

announce-

by the Comptroller of the
Currency covering the granting
licenses

The

First

National

City Bank cf New York, to establish branches in Plainview, Nas-

County, and Harrison,. WestCounty,
a
spokesman
stated they were gratified
with
the orderly action taken by the

The

Camden

Trust

effective

shares
value

plications

filed

New

the

processing

July

York

the

State

ap-

under

omnibus

banking bill.
The

plans

these

and

Aug.

$6.25.)
T

dfid

Wauwatosa,

The

state

indicated

thev

were

implement

establish

their

branches

locations.

closed uhe. bank July 29 because
"rental °*a shortage °| $}>562,000. The
of PhUade I
?.announced that it would
11
in
hie
pay the customers, whose deposits
nld

Bank
A,m

are lnsured UP to $10,600 per account, just minutes before the
*
*
*
District Judge, Clarence Mills
The consolidation of The Peoples Saturday, denied the bank's peNational Bank
of
Norristown, tition to reopen.

ce*

quarters are
commissioner and provide

bank

the

National

individuals can be found who
meet the exacting standards desanded of them
v
-^er9tro^ s 9..^lces and manufactunng facilities were moved to
iie.w duarlers in North Raleigh in
late June and early July 1960 into

uiuanoma uuy, UKia.

Kirk

Vice-President

„hia

par

Rohprt

penn

441,000,

(Number

outstanding,

rffir'p

bank

proceeding

Bank

Camden,

has been increased from
$2,625,000
to $2,756,250 by a stock dividend,

Chester

National

Company,

authorities

capital stock of the

common

First

...

regulations were felt mostly by
the smaller entiepreneur. He

could now take advantage of the
means to
Milwaukee County
Wis
Edward
effect closer control over his
C.
Iieckl
is
the
President
and
enterprise, with the resulting inRobert C. Firle is the Cashier
creases in efficiency.
*
*
*
an especially designed building
Aerotron with its sensitive, high
The
Federal
Den^it
t™,ranee
whic.h P.rovides the capacity for performance and compact sets was
cm D
started to nav
nf
<mmtupling the present volume on in a position to reap particular
the closed Canitol IIill ftaTBank
a continuation ?f th? present one- advantages from this new market
oklahomacXoki
' shift-per-day basis.
The new presented by the FCC, and its.
Bank

ment

the security i like best

Donald O'Toole, President of the Continued from page 2
vealed to the manufacturers of
three South Side banks.
mented, with new franchises be- industrial radio equipment. How*
*
*
ing granted as rapidly as qualified ever> the benefits of these new

completely
for

the

modern

maximum

ready availability of this

subsequent performance gives
eloquent testimony to this fact.
,

production efficiency so necessary
As can be seen in the accom-.
for the increasing sales volume, panymg table, the company has
In addition, sufficient space is enjoyed unusual growth since the
available on the more than five fall of 1958 when the new FCC
acres of land to erect still additional capacity when demand so
warrants.

Developmental
work ' is
rently being handled by an
gineering staff of ten who

cur-

requirements
went
into
effect.
Sales have increased more than
four-fold while gross profits have
risen almost twice as fast as sales,

en- Per
share earnings have quadare
rupled at the same time, although
presently partially engaged in ex- n°t Quite as rapidly as sales due
areas of the locations.
*rs National Bank of Pennsburg, elected a Vice-President of First perimenting with HF and UHF to Aerotron's tax-loss-carry-forThe branches will be adminis-'
wlth^ caPmon National Bank in St. Louis, Mo. equipment with view in mind of ward having expired in fiscal
tered by experienced officers wno stock of $75,000 was effective as j^y the board of directors of the using it to round out the
product 1960s third quarter,
can
draw on ail the resources of
y
9*
bank,
it
was
announced
by line and to provide full frequency
Particularly worthy of note is
the institution.
ls, ^
eap s William A. McDonnell, Chairman coverage.
the fact that this growth has taken

The

offices

new

will be

staffed

by people familiar with the trade

Noiristown>

Pa.,

with

common

st°ck °/. $905,425, and The Farm$

William

Harrison

has

been

....

•

Branch

addresses:

Old

east

corner

and

(1)

South-

Plainview

Country Road

Road, Plainview.
(2)> Anderson Hill Road at West-

chester

Harrison.

Ave.,

board

new

for

elected

the

directors

American

Schwamm

^Haryey

late
then Chairman,

who,

^^^cf of SL/^r^
ShwJm S iJ?an

?irnlfl!p

rrp

Tnhn

mpn'c

Rntt^fnrmpV

Rank

York!

PresMekt

and

man

fnr

John P. McGrath

also named

were

Peoples Trust Company

merg|d

Reading

taking

the

Peoples Trust

have
title

new

City

Company^

TrU3t

and

from

the

State

approval

New

York

Banking Department and the Fed-

lnTurance Corpora-

eral

Depot
tion to open a

branch office with

Virginia

Chesterfield

last

move

Acres ShoDDine Center

Valley Stream in Nassau Coun-

authorities.

:
.

September
*

With

6.
*

stock dividend, The FrankHn National Bank of Long Island,
Mineola, New York, increased its
a

purchasing

County

April

subsequent

been

are

duly

use,

it does not

optimistic

appear un-

project

Stockholders of "Sudameris"are
Banca Commereiale Italiana of

Ta0'",,0To.PSa.e,".,Klc

Fisca. Yr. E„„. May 3.
Sa.es
1958
$272,000

$15,000

1959

427,000

Zurich

.Deposits

^Aug^'lf

the

and

44 000

091

235,000

19.78

149,000

.310

lifiOO

ff.21

1959
1959

142,000
147,000

13,000

9.15

Aug. 31,
Nov. 30,
Feb. 29,

31 000

107,000

1959
1959

159,000

1960

May 31, 1960

1958

Feb. 28,
May 31,

"Sudameris,"

*Bascd

Bank—

$.031

10.30

Nov. 30, 1958

2S2£

$15,000

44,000

Z„k!
Ball<*ue de rindochine of Paris.

5.51%

8 OOOt

8 0001

0171

12,000*

.025^

13,000
27,000

.027
.056
.058

.071
.075

.106

27,000

18.37

17.61
17.44

329,000

28,000
34,000
61,000

18.54

28,000
34,000
36,000

500,000

112,000

22.40

51,000

195,000

■

present 481,680 shares outstanding. $Loss. NOTE: If all authorized

sh»"s ™»»la numb"
With J

Overton

expanding
market
for
(special to the financial chronicle)
radio equipment. Sales of CORONADO,
Calif. — John
D.
*
*
*
$3-$3V2 million appear quite feasi- Laws has joined the staff of J. A.
Announcement has been made by ble for fiscal 1961 with some $10 Overton & Co., 1134 Orange Averapidly

the directors of the First Union
National Bank of North Carolina,

million

Charlotte, N. C. and the National

stable rate of

the goal for 1962. As the

their

pla«s to merge the two institutions.

nue.

able to maintain a
profit, the foregoing
estimate would mean a per share

net 0f around $0.60-$0.70 in 1961

Bank,

Gastonia,

C., of

company seems

With Bateman Eichler
(soeciai to the financial chronicle)

anCFT FS

Calif

Georee B

for cash to the latter bank's stock*
*
and
$1.75-$2.00
in
1962.
From LOS ANGELES, Calif.—George B.
holders rather than by exchange The Office of the Comptroller of there, long range projections call Fisher has been added to the staff
of s t o c k. Chesterfield County the Currency has issued a charter for sales at the level of $20-$25 gf Bateman, Eichler & Co., 453
Ba"k stockholders approved the to the First National Bank of million annually which, by the South SP"n8

the Green

ty,

■

y
^
Presldent, and Dr.
Vir- Fttore Bottom, General Manager,

Final approval for the step was
by
banking
authorities
Aug. 10. In the transaction The

coniDlete savings bank farilitie-? in

has

Aerotron

Sales and Earnings Data

which totaled $35 million in 1946,

Chesterfield County Bank, Ches-

the

received

was re~

™

Bank

has

entlrely new sales vista

ob-

while

operating out of temporary quarters. Now that the new facilities

Herbert C. Moseley, President by the end of 1959 had grown to
"i"1"'"
of The Bank of Virginia has an~ equally good performance for the
nounced that the consolidation of ^ers
:Jf, +
S' next several years in view of a

lyn,

CorPm.lsslon

the"^'foLd"? itHirsTbranch

The Dime Savings Bank of Brook-

year

Federal Communications
ln tbe fa^ of 1958, an

the

Reading. The main office and
Although the head office of
branches of Peoples Trust Com- "Sudameris" is in^ Paris, almost
WW
and
the
branches
of
City all its business is conducted in
Bank and Trust Company will be the six South American countries
operated as branches of the con- m which it operates.

cleared

with

branches

South Amedca-this

t^the^former8 location*Switzerland
Bailk

ter, Va., with The Bank of

bank

The

Richmond, Va., became efActive Aug. 12.
r

^he

inumber

Reading-

Francis

Robinson.

«sudameris»

Directors

along with William
Alpert, Bertram F. Bonner,
Levien, John A. Maher,
David
Mink in and Joseph S.

ing requirements inaugurated

and"'TmTfcoMD^v bank in Sao Paulo, Brazil, in 1910.
of

Mow

Rich!

was named

largest

Seal tinuing bank*

the

Savinfrc

Chairman,
Cunningham was named
President, Mr. Reynolds and Mr.
ard

alfs oi fcoIP^on 1ftock of
the par valae °{ ^ each-

With the liberalization of licens- place

...

Ju'

Trust
to

af the Board.

was

Company, New York
The
stockholders
decision

voked""by "the

National Bank and Trust Company
/SS11'51!? capital
°t $999'175' dlvlded into

.Moseley

28,

approval

subject1 to

Alvm,y Alvin,

Brazoria

County,

banking Texas. The President of the
bank is e. L. Boston and

the

consolidation,

said,

four-former

Mr.
direc-

tors of the Chesterfield bounty
Ba»k have been elected to the
Scuth Richmond - Chesterfield
board of The Bank of Virginia.

new

the

Cashier, Van D. Gillen. The new
bank will open for business with
a

token, would give

me racnic L,oast &xock

he was previously
blower & Weeks. I

share.

internal financial situation

The

Aerotron

an mdica$3.00-$5.00
per

around

excellent

with

Donald K.

with

Horn-

Llected

capital of,$200,0C0, and a surplus ratio of current assets to current

of ..$200,000

51®'™|xchange
^xenange.

same

tion

Director

Phillips,

partner

capital stock trom $16,$16,654,000,
effective
(Number of shares out-

169,000

Aug.

standing, $3,330,800,
u

•

par

value $5.)

Gen.

are

Leslie

Pnmhinnlinn
umojuduun

C00

Tnd

stock

Coi^^ota^

nf
oi

tho
ine

two
iwu

Jn the event that additional short-

^as

who is retiring Oct. 1

resources

hank^

The

The Rye National Bank, Rye, New

main

Cameron

Mervin Dahl was elected

Vice

President < ofthe First National
W. Bruce, Maj.- Bank of Oregon, Portland, Oregon,
Carter, Ernest P. He will succeed Lynn S. McCready

Gates, and J. L. Longest,

White*MS
TOmmon

They

ide^ and Manager of the Eugene,
Oregon

common

of 3.00 When mven- E F Button & Company, New
tones are omitted, the quick ratio York
Stock
Exchange
member
is also found to be unusually firm> has been elected a director
strong at 2.15. Working capital re- 0f A. R. Abrams, Inc.
quirements appear extremely well
covered by cash and^receivables p
McCombs Sees Co
in the amount of some $455,000.
rorm lVlCL,omDS oecs. ^o.
liabilities

President'

office

ako

Vice PresVirgil

lected

June 30 statements of condition

l
■

funds

vRe term

should

needed.

Sb^ocS«tS ^

■

•

Management is unusually able
$836,800 have consolidated effeca^d well-qualified technically. It
tive as of the
close of business
has proved very alert and flexible
July 29. The consolidated bank
merged under the title and char- in taking full advantage of new
has a capital stock of $4 749 415
as of June 30 were $2,658,629 for ter of The Oregon Bank.
developments as they have ocdivided
into
949 883
shares
of Chesterfield
County
Bank
and
curred and has demonstrated its
common
stock
of the par value $131,615,574
for The
Bank
of
Gazarian Rejoins Copley
adaPtabJ 1 y 0 c ange wen
York,

with

stock

common

of the two banks listed $2,486,324
hi deposits for Chesterfield County
Bank and $116,650,086 for The
Bank of Virginia. Total resources

The Oregon Bank, Portland, Ore.,
and The Valley National Bank of
Milton, Milton - Freewater. Ore.,

•

oarh

Virginia.

The First Nationa,

necessary.

Bank

ot Hud-

The Petersburg

(Special to the Financial chronicle)

^
GC=nybr^X

Sayiu.s and

M itS'K
capital stock, by a stock dividend,
from $200,000 to $300,000, effective

Aug.

(Number

outstanding, 15,000,
Assistant
Chemical

Vice
Bank

par

and

title

the

value $20.)

President

New

Colonial

Heights,-

York

Trust

Company, New York, Edward J.
Maude, has been named Executive
Vice-President of the Community

Heights,

feeen

officer

Va., have merged under the char- sendrop & Co.
ter

the branches and main office

of |:he Bank of
as

Colonial Heights

its branches.
*

Qazarian, Es-

ceeds
has

BOSWOrth, Sullivan Adds
(special to the financial chronicle)

DENVER,

Colo.

—

Burton

^hich were primarily

".-

been

growth

able

finance

its

versified Mutual Funds, Ltd.
1

Ross Low to Admit

ner

-n the Exchange member firm

RogSi

way,

Low

Co<>

120

Broad-

New York City,

entirely from earnings.

The company has no debt (either
short-

Avenue
to^engage in a securities
business. Officers are Donald D.
McCombs,
president;
Jean
W.
McCombs,
vice
president;
and
J. L. Bialaxzewski, treasurer. Mr.
McCombs was formerly with Di-

Frank J. Bennett, member of the

long-term) and

senior

Howard, Jr. has joined the staff securities (it retired its last preof Bosworth, Sullivan & Company,
ferred stock in 1955). r pays no
Inc., 660 Seventeenth St., memt+
bers of the New York and Mid- dividends at present. It is traded

W.
Richard
Murphy
has
been
Savings Bank of Rochester, N. Y., elected Vice-President of Pullman
Sept. 1.
\
■«Trust & Savings Bank, Chicago, west Stock Exchanges.

effective

out that with

^ ^M

offices at 588 North Park

like to point

used for the new plant), Aerotron

Petersburg

l^Com-

use

In closing, I would

(special to the financial chronicle)

POMONA, CalifMcCombs Se-

the Over-the-Counter Market.

DpGIlS Investment vJiflce
(special to the financial chronicle)

Calif.

BURBANK,

—

Cheney is conducting

business
Palm.

fr-rxyvx

Louise
a
ot

securities
^90

The Commercial and Financial Chronicle

(631)

Thursday, August 18, 1960

* INDICATES

Now

Securities

Registration
Del

NEW ISSUE CALENDAR
NOTE—Because

Safticraft

items reflect the expectations
but are not, in general, to be

Arkansas

August 19

Inc.)

Co.,

sale

Edwards

(George,

Chematomics,

Inc

(Mainland

Sons)

Adson

common

stock

(Robert

(Netherlands

Inc.

Inc.)

Co.,

and

porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas. Note — This
offering has been postponed.
Alterman Foods, Inc.
July 27, 1960 filed 100,000 outstanding shares of common
stock (par $2.50). Price—To be supplied by amendment.
Business—The company operates 48 supermarkets in and
around Atlanta, Ga., and, in addition, conducts a whole¬

business. Proceeds — To
selling stockholders. Office—933 Lee St., S.W., Atlanta,
grocery

Ga.

Underwriters—Kidder, Peabody & Co., and Wertheim & Co., both of New York City
(managing).

Co.,

Bateman,

18th

& Co.,

Inc.)

Aug. 30, at $7

CST

share. Additional shares may be sub¬
scribed for at $8 per share.
Price—$8 per share. Pro¬
ceeds—To increase capital and
surplus. Office — 1455
Union

Ave., Memphis, Tenn. Underwriter—Union Secu¬
rities Investment Co., of
Memphis, Tenn.
American Mortgage Investment
Corp.
April 29 filed $l,800,0u0 of 4% 20-year collateral trust
bonds and 1,566,000 shares of class A
non-voting com¬
stock.

mon

It is

that these securities will be
offered for public sale in units
(2,000) known as In¬
vestment Certificates, each
representing $900 of bonds
and 783 shares of stock.
Price—$1,800 per unit. Proceeds
proposed

them

disposition.

until

Office

market
—

210

conditions
Center

are

favorable

Components, Inc
Schramm

the

September, 1972 (with attached warrants for
purchase of 150,000 shares of stock for each
$1,000

debenture
Price

purchased), and 60,000 shares of capital stock.

To be supplied

—

by amendment. Business

—

Inc.)

through subsidiaries, in the opera¬
centers, and in the sale of bowling
accessories.
Proceeds
Retirement of indebtedness,
modernization of facilities, and for
general corporate
—

Office—1721 Eastern Ave.,
Sacramento, Calif.
Underwriter—York & Co. of San
Francisco, Calif.

(J. A. Winston & Co.,

Inc.

American & St.
filed

Lawrence Seaway Land Co.

538,000 shares of

common

stock, of which
Price—$3 per

mortgages, develop and im-

prove

properties,'

and

acquire ■- additional

real

Continued

y-jr,

Merrill Lynch,

Inc.)

Pierce,

Fenner

$125,000,000

(Thursday)
Common
First

Boston

Lumber
(Bear,

Common
100,000

Co.)

—_.—Common

Corp
Stearns

$1,102,400

Co.)

(Tuesday)

September 6
Astrex

Securities

Mfg. Corp

and Schwabacher &

Co.

Corp.

..Common

(Clayton Securities Corp. and Maltz, Greenwald

Co.)

•

(Ross,

Lyon

Co.,

Lyon &

Transnation
(Ross,

Inc.

and

Globus,

Co., Inc.

Wakefield

Inc.)

Co.,

and

Globus,

Inc.

Inc.)

70,000

Martin

Globus,

Inc.)

Sulzberger,

(Hallowell, Sulzberger,

Jenks,

(R.

Duncan

Co.)

(S.

(G.

August 23
Ameco

Peabody

(Lehman

Sachs

135,000

Industries,

Investment

(Lehman

(Offering

EDT)

;

Pearson

$437,500

Engineering
(Sandkuhl &

Co.

and

Debentures

Corp

Amos

Inc.)

Co.,

Sudler

$297,500

Co.)

Hammill

$300,000

$1,500,000

..Common•

Holman

Co.,

Inc.)

Association

50,000

_ ^

..Bonds

$300,000

L-.Common
100,000 'Shares

Bullard

Smyth,

.Common

75,000 shares

Capital Corp. of America
Hardy

Common

Co.,

Sprayregen,
Cummings & Co.)

$2,062,500

Vitramon, Inc.
(G.

Common
Inc.)

Common
Shearson,

Common

Haft & Co. and Bregman,

Common

.Common
&

Stern

Inc
(Purvis

'(Blunt Ellis & SimmonS)

(Filor,

Company,

ResifleX Laboratory, Inc.--.__

(Auchincloss, Parker & Redpath) $2,000,000

Co.)

..Common

(Morris Cohon & Co.)

60,000

Capital

...

Roto American Corp.—
Venture

Central Charge Service, Inc..

Edwards

Turf

$6,270,000

Redpath)

Hammill

65,000 shares

(General Investing Corp.)

Common

Service, Inc
Parker

Shearson,

Corp..-(R.

(Thursday)

Central Charge

Co.;

Capital
and

Co.

Narragansett Capital Corp

Equip. Trust Ctfs.

(Noon

Magnus

Corp
&

Co.)

(G. H. Walker & Co.) $11,000,000

.Common

Pacific Ry

Reich

Missile-Tronics, Corp.

(Wednesday)

August 25

Inc.;

Godfrey, Hamilton,
Co.) $800,000

& Co.)

$60,000,000

Terrazzo, Inc

Units

Globus,

and

stockholders—underwritten

(Edward

400,000

Towbin
..

Milgo Electronic Corp...

Bonds

Co._

Brothers)

Untcrberg,

(William R. Staats & Co.; Bache & Co. and
Hammill & Co.) 1,000,008 shares

..Common

(Floyd D. Cerf Jr. Co. Inc.)

Northern

Shearson,

Portland

August 24
Miami Tile &

Metropolitan Development Corp

Common

time)

Com.

$300,000

Common

Inc.;

Co.,

Staats

$300,000

(8:30 a.m. California

Shore & Co.

Financial

$15,000,000

—_

Inc.)

Co.,

354,000

Southern California Edison Co

Trans-Coast

(William

(Vickers, Christy & Co., Inc. and First City Securities,
Inc.)

and

Debentures

Co.)

Inc.

Lyon

Lytton

(Vickers, Christy & Co., Inc. and First City Securities,
Inc.) $300,000

Rez-Tile

Co.

Robbins, Inc...

(Goldman,

(Ross,

Common

Brothers)

Corp

Common
120,000

Industries, Inc
&

Walker &

260,000

Co.)

Manufacturing Corp

Schramm

Timer

Harold

$300,000

;
Co.)

$330,000

Kings Electronics Co., Inc

Common

City Gas Co. of Florida
(Kidder,

75,000

(Palombi Securities Co.)

Debentures

Inc.)

Co.,

-.Capital

(Tuesday)

Electronic Corp

Infrared

Stearns

Industrial

$500,000

$350,000

Products, Inc

(Eear,

Debentures

Kirkland

Common

Inc.)

Co.,

Co..

Heldor Electronics

$510,000

Holman

Coffee

..Common

Kirkland

Common
Dimond & Co.) 250.000 shares

Products, Inc

Hclman

Deluxe Aluminum

$300,000

Inc._

Jenks,

(R.

Common
Inc.)

Corp

Deluxe Aluminum

35.000

Inc

Associates,

Laboratories,

(Hallowell,

Bowling

(Sutro Bros. & Co. and McDowell,

Warrants

and

Engineering,

(Robert

Atlantic

$700,000

...Common

...

Realty Corp...

Lyon

$400,000

Debentures

Transnation Realty Corp

September 7

Spray-Bilt,
(J.

Common

:
Walker

II.

«S? Co.)

103,512

(Wednesday)

Inc.

Magarll

Common
Co.

and

Sandkuhl

Company,

Inc.)

$250,000

I. D. Precision
(R.

Majestic

Components Corp
Holman

Utilities

Co.,

Inc.)

.Common
$200,000

Corp

(Purvis

September 12
....Units

Co.)

(Monday)

Ennis Business Forms, Inc

$300,000

Common

(Kidder, Peabody & Co.) 74,546 shares

August 29

(Monday)

Vendo Co.

Arnoux Corp.

.Common
Hammill

Co.)

(S.

Fuller

Capital
Co.)

(The

Marshall

Co.)

•

/.".A.•

$660,000

Common
Common

(No underwriting)

134,739 shares

stockholders—underwritten
&

Co.)

Kidder,

$5,250,000

Yardney Electric Corp..

-Common

(Kidder, Peabody & Co.) 254,000

$4,000,000

Capital Investments, Inc.-

(Offering

_Conv. Debentures
Peabody

133,000 shares

Avionics Investing Corp

estate.
page 37

Common

$242,670

Debentures
and

Smith

California

Stearns

Triangle

$1,000,008

Dalto Corp.
on

(Bear,

Capital

Realty Corp

(Shearson,

350,000 shares are to be publicly offered.
*hare. Proceeds—To
pay off

Co.)

stockholders—underwritten

Common

Netherlands

and

Co., Tnc.)

Transnation

purposes.

Jan. 27

Fritzi

$300,000

The

company is engaged,
tion of four bowling

Common

$500,000

Corp.; Courts & Co. and The Robinson-Humphrey
Co., Inc.) 109,186 shares

Common

(Auchincloss,

tures, due

(Offering

Common

Co.,

Milk Products Co
,.u4<Hecker,#.S°.> $309,000
Terminal Electronics, Inc
/_

.Underwriter—Amico, Inc.
★ American Recreation Centers, Inc.
Aug. 15, 1960 filed $600,000 of 7% sinking fund deben¬

Common
$300,000

Co., Inc...,

Corp,

September 1

.-iio

for

St., Little Rock, Ark.

Common

$264,900

Co.)

Atlanta Gas Light Co...

Common >

Sunbury

;—To be used principally to originate mortgage loans and
carry

Corp

Boston
and

(Harwyn Securities, Inc.) $300,000

per

60,000

Co.,

(Tuesday)

Steel

(The First

National Electronic Tube Corp

p.m.

August 30
Republic

Common

for

held, with rights to expire at 2:00

(Stroud & Co.)

100,000 shares

McKesson

then

Inc.)

$100,000

130,000 shares

American Frontier Life Insurance Co.
Nov. 30 filed 200,000 shares of capital stock

being offered
subscription by holders of common stock of record
June 1, on the basis of one share for each six shares

Co.)

Securities

Products

Common

Softol,Inc.

Street, New York, N. Y. Underwriter—Palombi Secu¬
rities Co., New York, N. Y.
if American Foods Inc.
Aug. 16, I960 filed 167,500 shares of common stock.
Price—$3 per share. Proceeds—For the company's ven¬
tures in Florida and North Carolina, and the balance
for working capital.
Office—Miami, Fla. Underwriter—
Godfrey, Hamilton, Magnus & Co., New York City.

Edden

Wilier Color Television System, Inc

Common

Whitmoyer Laboratories, Inc

—

Waterman

Co.)

300,000 shares

For

Office

Earl

Pierce

Common
&

Whitmoyer

purposes.

and

Bros,

(Equity Securities Co.)

135,000 shares

Inc.)

Electronic Corp.
(8/23)
May 19 (letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—

corporate

Common

(Equity

(Hayden, Stone & Co. and Lowell, Murphy & Co.) 250,000 shares

Ameco

general

Globus, Inc.) $600,000

and

(Equity Securities

(S.

Units

Inc

Telephone & Electronics Corp.—

$300,000

Eichler

Miles-Samuelson Inc.

Rotating

$600,000

Common

Moore, Inc..

(Blyth

Co.)

Common

(Allen & Co.)

Hyster Co.

Common

______

(Rauscher,

Common

and

Common
$300,000

Tempest International Corp

Inc

Inc.

Netherlands

and

$1,200,000

Corp

Winston

Inc.
Inc.)

A. Lomasney

Properties,

(Bertner

$300,000

Industries,

(Harriman Ripley & Co.,

stock

Common
Co.,

Co.,

Steck Co.

Common

Co.,

(Ross, Lyon & Co., Inc.

Sealed Air

$650,000

Navajo Freight Lines, Inc.

debentures and
800,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
ftock. Price—$108 per unit. Proceeds—For general cor¬

•

Inc.)

Corp.

Fischbach &

Dec.

institutional

Co.,

Class B
$500,000

Inc.)

Corp. of America:

(Myron

Sachar

Jeffrey-Robert

and

A. Winston

Pacotronics, Inc.

...Common

Corp

Planning,

-Securities

Nucleonic

Notes

Specialty

Electro-Tec

Common

$299,700

Inc.)

Capital Corp

(J.

.Common

(Marron, Sloss & Co., Inc.)

Allied Bowling Centers, Inc.
29 filed $750,000 of sinking fund

National
.•.

$287,500

150,000

Washington, D. C.

$564,900

(Flomenhaft, Seidler & Co., Inc.)

(Reynolds &

1960, filed 200,000 shares of common stock and
$500,000 of 63A% first mortgage bonds, due 1963 through
1972. Price—$5 per common share (par 50 cents), and
bonds at 100% of principal amount. Proceeds—To pur¬
chase the outstanding shares of the Cloverdale Spring
Co., and the balance for the general funds. Office—
Guildford Ave., Baltimore, Md. Underwriter—Weil & Co.

and

Corp.

Baird

Allegheny Pepsi Cola Bottling Co.

sale

Co.)

Co., Inc

Securities

Electromagnetic
Electronic

Co.,

(Eertner Bros, and Earl Edden Co.)

Dunbar Development Corp

Co., Newark, N. J.

June 9,

$2,010,000

Civic Finance Corp

(letter of notification) 150,000 shares of
(par 10 cents). Price—$2 per share. Busi¬
is a general contractor. Proceeds—

(Robert W. Baird & Co., Inc.) 40,000 shares

For general corporate purposes. Office—116-55 Queens
Boulevard, Forest Hills 75, N. Y. Underwriter—Bennett

Common

Inc.)

Securities

ness—The company

Inc

Co.,

(Fund

...Common

30,000

Civic Finance Corp.__

Industries, Inc. I

July 20, 1960

Corp.)

Water
Street, West Newton, Pa. Underwriter — Arthurs, Lestrange & Co., Pittsburgh, Pa. (managing).

North

Electronics

Debentures

Common

Office —149

subsidiary.

its

$300,000

$400,000

Sons)

Inc.

Chemical Packaging

Proceeds—To be added to the working capital of

and

O'Neill

(Pleasant

pre-fabricated

$400,000

—Common

Electri-Cord Manufacturing Co., Inc

$825,000

Foto-Video

Valley Industries,

Bruce National Enterprises,

and

Corp

Inc.)

Common

O'Neill

Arkansas Valley Industries, Inc.-

manufacture

Bruno-Lenchner,

(Monday)

(A.

if Admiral Homes, Inc.
Aug. 15, 1960, filed $400,000 of convertible subordinated
debentures, due 1970. Price—100% of principal amount.

company

and

Corp.

Collateral

(E.

August 22

of the underwriter
considered as firm

Common

Corp..

Securities

(The Tager Co.)

Corp.

(A.

the

Electronics

(Standard

ISSUE

REVISED

ITEMS

Diversified

(Friday)

(George,

offering dates.

homes.

•

ADDITIONS

the

large number of issues
awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
in the index and in the accompanying detailed

Business—The

SINCE

September 13

(Tuesday)

Virginia Electric & Power Co
(Bids to

be Invited)

$25,000,000

Bonds

<L
S '

Volume

192

Number 5978

The

Commercial and Financial Chronicle

(685)
September 14

(Wednesday)

Public Service Electric & Gas Co

Utah Power & Light Co.
(Bids

Utah Power & Light Co
(Bids

September 15

Bonds

invited) $16,000,000

..Preferred

(Merrill

$700,000

General Steel Castings Corp,.
Weeks)

Puller

Perkin-Elmer Corp.
'

Russell Stover

Rochester

(11:00

Common

Rubin

September 19

Co.,

Cavitron

Jackson

'/••• (Bids

Co.,

Inc.

Curtis)

received)

Inc._

and

300.000

September 28

Time)

Bonds

Chace,

200,000

Whiteside &

Winslow,

Inc.)

(Bids

October 4

(Tuesday)

Missouri Public Service Co

Gulton

Comimon

October 25

Continued

to stockholders—underwritten by Merrill Lynch,
Fenner & Smith Inc. and Kidder, Peabody & Co.)
258,558 shares

Common
$120,000,000

from

page

Office—60 E. 42nd

Co.)

St., New York City. Underwriter—

American Stereophonic Corp.
April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th
St.,
New York, N. Y. Underwriter—Hamilton Waters &
Co.,
Inc., 250 Fulton Ave., Hempstead, N. Y. Offering—Im¬

and

Allen

Co.)

$1,600,000

minent.

Insurance Co.

July

27, 1960 filed 301,884 shares of common stock
$2), of which 150,000 shares are to be publicly
offered for the account of the issuing
company and the
(par

balance is to be used in connection with
exchange offers
for the stock of similarly engaged companies. Price—
To be supplied by amendment. Proceeds—For
general
corporate purposes, including possible future acquisi¬
tions. Office—901 N. E. 2nd Ave., Miami, Fla. Under¬
writers—A. C. Allyn & Co.,
Inc., and Bache & Co., both
of New York City
(managing).

Offering—Expected in

mid-September.

Arden Farms Co.

tion

including debt reduction. Business—The distribu¬
equipment used principally in the electronics,

industries. Office—New York City.

Underwriters—Clayton Securities Corp., Boston, Mass.,
and Maltz, Greenwald & Co., of New York
City.
Atlanta

Gas

Light Co.

(9/1

Aug. 9, 1960, filed 109,186 shares of common stock (par
$10), to be offered to holders of the outstanding common
of record

Sept. 1

10 shares then

the basis of

one new

share for each

held.

Rights expire at 5 p.m. ED ST on
Sept. 19. Price—To be supplied by amendment. Proceeds
—To reduce bank loans incurred for construction

expend¬

itures.

Office—Atlanta, Ga. Underwriters—(for unsub¬
scribed stock). First Boston Corp;,' New York
City, and
Courts & Co. and The Robinson-Humphrey
Co., Inc.,
both of Atlanta, Ga.
•

Atlantic Bowling Corp.

(9/6-9)

•

May 13, 1960, filed 44,278 shares of preferred stock, and
149,511 shares of common stock. The company is offering
the preferred shares at $52 per share, and common shares
at $15 per
share, initially through subscription warrants.
The holders of outstanding
preferred stock will be en¬

(no
par). Price—To be supplied by amendment. Proceeds—
To furnish and equip additional bowling
centers, includ¬
ing the repayment of any temporary indebtedness so in¬
curred, and for working capital. Any balance will be

titled to purchase the new preferred at the rate of one
share for each 10 shares held. Common stockholders
will be entitled to purchase the additional common

used for

general corporate purposes, which may include
equipment of additional bowling centers, or the purchase
of such centers from others, and the reduction of in¬

shares at the rate of

debtedness.

held.

new

rights

one new share for each 10 shares
The record date for both groups is June 23 with
to expire on or about Sept. 16.
Proceeds — To

repay the equivalent portion of bank loans. Office—1900
West Slauson Ave., Los Angeles, Calif.
Arizona

Consolidated

Industries,

Inc.
100,000 shares of

July 28, 1960 (letter of notification)
capital stock (no par) of which 58,000 shares

are to be
offered by the company and the balance
by Arthur Spitz.
Price—$3 per share. Proceeds — To increase inventory

and

for

working capital. Office—2424 E. Washington,
Phoenix, Ariz. Underwriter—Newton, Osborne & Rey¬
nolds, Inc., 1800 David Stott Bldg., Detroit, Mich.
Arizona-New Mexico Development Corp.
28, 1960 (letter of notification) 12,000 shares of
stock (par $4) and 48,000 shares of convertible
preferred stock (par $4) to be offered in units of one
June

common

share of

$25

common

and four shares of preferred.

per unit. Proceeds

attraction.

—

Price—

develop land as a tourist
Underwriter—Pre¬

Arkansas Valley

stock, $3

issued

Autosomes, Inc.
July 29,

1960

common

stock

(letter of notification) 135,000 shares of
(par five cents).
Price—$2 per share.
Proceeds—For production and research for equipment,
inventory, building and working capital. Office—42 S.
15th St., Philadelphia, Pa. Underwriter—Robert M. Har¬
ris & Co., Inc., Transportation Bldg.,
Philadelphia, Pa.
Avionics Investing Corp.

Industries, Inc.

(8/22-30)

par.

Arkansas

closed

company.

end

non
diversified management investment
Proceeds—For investments in small business
-

in avionics and related fields, with a proposed
$800,000 to be invested in any one such enter¬
Office — 1000 - 16th Street, N. W., Washington,

limit of

prise.
D. C.

Underwriter—S. D. Fuller &

Bal-Tex Oil

17,

1960

Co., New York City.

Co., Inc.
(letter of notification)

common

stock.

Proceeds—For expenses

ver,

300,000 shares of

Price—At par ($1 per share).
for development of oil proper¬

Colo. Underwriter—L. A. Huey & Co., Denver, Colo.

Blackman

Merchandising Corp.
1960 (letter of notification) 27,500 shares of
stock, class A (par $1). Price—$10 per share.

Proceeds—For

—Dardanelle, Ark. Underwriter—A.

sas

G. Edwards &

St. Louis, Mo.
•

Arnoux

Corp.

Son®,

(8/29-9/2)

May 23 filed 133,000 shares of

common

stock.

Price-

To be supplied by amendment. Proceeds — For
general
corporate purposes and working capital. Office—11924

W. Washington Blvd., Los
Angeles, Calif. Underwriter—
Shearson, Hammill & Co., New York.
• Associated Sales Analysts, Inc.

Aug. 15, |960, filed 105,000 shares of outstanding class
A stock
(par 10 cents). Price—$3.50 per share. Business
•—The

company

essing and

is engaged in the electronic data

machine

accounting service

business.

proc¬

Pro¬

July

28,

common

working capital. Office—3041 Paseo, Kan¬
City, Mo. Underwriter—Midland Securities Co., Inc.,
Kansas City, Mo.
Border Steel Rolling Mills, Inc.
July 25, 1960 filed $1,300,000 of 6% subordinated con¬
vertible debentures, due
1976, and 245,439 shares of
common
stock, of which the stock will be offered to
holders of record May 31, on the basis of 53Y4 new shares

for each share then held.
100%

the

construction of

facilities, land purchase,

general

—

For the

principal amount; for the stock, $5

Proceeds—For
lated

Price

funds.

Office

Underwriters—First

—

Mart

Securities

■

ti2.ooo.ooo

invited)

(Minn.)

Bonds

$35,000,000

★

Paso, Texas (for debentures

Boston Capital Corp.

Aug.

3, 1960 filed 1,500,000 shares of common stock
(par $1), constituting its first public offering. Price—
$15 per share. Business—The issuer is a closed-end, nondiversified

maangement investment company. Proceeds
invest for capital appreciation in small businesses.
Investment Advisor—Allied Research & Service
Corp.,
75 Federal St.,
Boston, Mass. Underwriter —
—To

Hammill & Co., New York City
Expected in mid-September.

Shearson,
(managing); Offering—

Bristol

Dynamics, Inc.
28, 1960, filed 124,000 shares of common stock, of
which 69,000 shares are to be offered for
public sale for
the account of the
issuing company and 55,000 shares,
being outstanding stock, by the present holders thereof.
Price—$6 per share.
Proceeds—$100,000 for expansion

June

and further

equipment;

modernization of the company's plants and
for research and development'of

$100,000

new

products; and the balance (about $123,000) for
working capital and other corporate purposes. Office—
219 Alabama
Ave., Brooklyn, N. Y. Business—Designing,
engineering, manufacturing, producing, and selling elec¬

trical and mechanical
assemblies, electronic and missile
hardware components and special tools and fabrications.
Underwriter
William David & Co.,
—

Inc., New York.

Offering—Expected in

late August.

★ Brothers Chemical Co.
Aug.

class

share.
For

1960

(letter

stock

common

notification)
(par 10

100,000 shares of
cents).
Price — $3 per

Business—Manufacturing chemicals.

Proceeds—
Forest
Underwriter—Sandkuhl & Com¬

general

corporate

Office

purposes.

575

—

Street, Orange, N. J.
Inc., Newark, N. J. and New York City.

pany,

Bruce National
Enterprises, Inc. (8/22-26)
April 29 filed 335,000 shares of common stock (par 10
cents).
Price—$6 per share. Proceeds—For reduction
of outstanding indebtedness; to
pay off mortgages on
certain property; for working capital and other corpo¬
rate

Office—1118 N.

purposes.

Fla.

Underwriter

—

E. 3rd Avenue, Miami,
George, O'Neill & Co., Inc., New
,

★ Business Finance Corp.
Aug. 5, 1960 (letter of notification)
common

stock

195,000 shares of
—
$1.50 per share.
expansion. Office—1800 E. 26th

(par 20 cents). Price

Proceeds—For business

St., Little Rock, Ark. Underwriter—Cohn Co., Inc., 309
Road, Little Rock, Ark.

N. Ridge

★ Buttrey Foods, Inc.
Aug. 15, 1960 filed 65,GOO shares of common stock. Price
be supplied by amendment. Business—The com¬
pany operates a chain of 21 retail food stores in Mon¬

—To

ties. Office—Suite 1150, First National Bank Bldg., Den¬

mainder of the registration will be
publicly offered. Price
—To be supplied by amendment/Proceeds — To retire
current bank loans and increase
working capital. Office

[ '

only).

York.

concerns

class A

$200,000 of the debentures will be
Valley Feed Mills, Inc.; the re¬

(8/29*9/2)

July 12, 1960, filed 400,000 shares of capital stock (par
$1). Price — $10 per share.
Business —- The issuer is

June

June 9, 1960, filed
$400,000 of 6% convertible subordin¬
ated sinking fund debentures and
30,000 shares of com¬
mon

Office—100
Medway Street, Providence,
Underwriters—Sutro Bros. & Co., New York and
McDowell, Dimond & Co., Providence, R. I.
/

Harold S. Stewart & Co., El

Office—Scottsdale, Ariz.

ferred Securities, Inc.
•

June 27, 1960, filed 250,000 shares of common stock

(Tuesday)

midii to

Astrex Corp.
(9/6-9)
July 12, 1960, filed 100,000 shares of common stock. Price
—$4 per share. Proceeds — For general corporate pur¬

aircraft and missile

mvitMD

Northern States Power Co.
>

selling stockholders. Office — 220 W. 42nd
Street, N. Y. C. Underwriter—Amos Treat & Co., Inc.,
York City.
.1

Debentures

Bonds
ke

New

poses,

December 6

100,000 shares

Conv. Debentures

ceeds—To

A. J. Gabriel Co., Inc., New York City.

American Title

Walker &

$25,000,000

Georgia Power Co

Common

Oil Recovery Corp..,
Brotners

received)

(Thursday)

(Bids to

Industries, Inc

(Lehman

Bonds

(Tuesday)

November 3

(Tuesday)
H.

(Bids to be received) $250,000,000

$60,000,000

received)

(Lehman Brothers and G.

(Offering

Pierce,

$50,000,000

American Telephone &
Telegraph Co.

September 20

EDT)

(Thursday)

(Bids

.Bonds

New York Telephone Co

a.m.

$12,000,000

(Wednesday)

(Bids to be received)

.Common

Bonds
$16,000,000

Bonds

October 20

Nevy York Telephone Co

$3,975,000

Invited)

Florida Power Corp

Equip. Trust Ctfs.

Enterprises,
&

(Bids

(Tuesday)

.Capital

Webber,

(Wednesday)

Electric

Common

(11:00

$30,000,000

underwriting) $600,000

Indianapolis Power & Light Co

(Monday)

Hallierafters Co.

(Blair

(Bids

(Monday)

September 27

$300,000

invited)

$7,500,000

Corp.
(No

Debentures

(Tuesday)

Louisville Gas & Electric Co

Union

Common

Inc.)

October

.Bonds

Common

(Simmons,

Reva

System, Inc.

(Bids

$12,000,000

Bonds

(Thursday)

Columbia Gas

October 19

September 26

$5,000,000

Preferred

Power Co
(White, Weld & Co.) $5,000,00G

Equip. Trust Ctfs.

received)

$25,000,000

Southern Nevada

Bonds

received)

Bonds

invited)

October 6

(White, Weld & Co.) $2,000,00G

Equip. Trust Ctfs.

Southern Nevada Power Co

Inc.)

$20,000,000

N. Y. time)

a.m.

(Bids

Valdale Co., Inc

Smith,
1

Southern Pacific Co

100,000 shares

(Hairiman Ripley & Co., Inc. and Stern Brothers)
200,000 shrs.

(Paine,

noon)

Telephone

Candies, Inc.—

Missouri Pacific

(Wednesday)

(Bids

Pittsburgh & Lake Erie RR._
(Bids

September 21

.Common

191,667

Co., Inc.)

Fenner

Pacific Power & Light Co

(Blyth

Pierce,

Diego Gas & Electric Co
(Bids

Common

(Merrill Lynch, Pierce, Fenner & Smith,
Inc.) $2,350,000

Common

296,649

Co.)

Lynch,

San

;

•.

Harvest Brand, Inc._____^____
(S.

Bonds

$50,000,000

Rocky Mountain Natural Gas Co., Inc.__Debentures
Units

(Hornblower

invited)

235,000 shares

(Thursday)

underwriting)

invited) $10,000,000

Inc.
(No

Rocky Mountain Natural Gas Co., Inc

East Central Racing & Breeders Association
,

(Bids

steel

debentures,
per share.

mill

and

re¬

interest payments, and
Bldg., El Paso, Texas.

Co., Dallas, Texas,

and

tana.

Proceeds—For equipment

and inventory, and for
be opened in the future. Office
—601 6th St., S.
W., Great Falls, Montana. Underwriter
—J. M. Dain & Co., Inc. of
Minneapolis, Minn.
additional stores

Buzzards

may

Bay Gas Co., Hyannis, Mass.

June 7 filed 27,000 outstanding shares of common stock,
to be offered for sale by American Business Associates.

Price

—
To be supplied by amendment. Underwriter—
Coffin & Burr, Inc., Boston, Mass. Offering—Indefinitely

postponed.

★ Canaveral International Corp.
Aug. 12, I960 filed 300,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
Land sales and development. Proceeds—$150,000 for ac¬
counts payable, $335,000 for mortgage and interest pay¬
ments, $250,000 for advertising, $250,000 for development
costs and $290,000 for general working capital. Office—
1766 Bay Road, Miami
Beach, Fla.
Underwriter — S.
Schramm & Co.,

Inc., New York City.
Continued

page

The Commercial and Financial Chronicle

(686)

pre-fabricated type residential or
and facilities upon properties to
be acquired for sub-division and shopping center devel¬
opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
Ark. Underwriter—The Huntley Corp., Little Rock. Ark.
struction of custom

Continued from page 37

commercial

Capital Investments,

(8/29)

Inc.

July 15, 1960 filed 60,000 shares of common stock. Price
.—$11 per share. Business—Issuer is a closed-end, nondiversified management investment company providing
equity capital and advisory
concerns.

Proceeds

For

—

services tb small business

general

corporate

Office—743 No. Fourth St., Milwaukee,
—The Marshall

(letter of notification) 74,750 shares of 10c
stock, in the Atlanta, Ga., SEC office. Price
—$4 per share. Business—The company manufactures
and distributes tufted carpets. Proceeds—For inventory,
debt
reduction, and sales and advertising expenses,
Office—205-11 Fourth St., Fort Oglethorpe, Ga. Under¬

(9/26-30)
filed 40,000 shares of common stock. Price

writer—A. J. Frederick &

(8/25)

18, 1960, filed $2,000,000 of subordinated sinking
fund debentures, due Aug. 31, 1975, with attached war¬
July

purchase

60,000

the

shares, and an ad¬
Price—To be supplied by
issuer provides a retail

Cubic

-.V;

—

Aug.

Underwriters, Inc.
1960 (letter of notification)

common

eral

300,000 shares of
($1 per share). Proceeds
outstanding notes and the remainder for gen¬

stock.

—To pay

corporate

Price—At

purposes.

par

Office—214 W. Third St., Yank¬

ton, S. C. Underwriter—Professional Insurers and Inves¬
tors Ltd., 104 E-.*8th St., Denver, Colo.
•

Dalto

March

Corp.

filed

general corporate purposes. Office—100 W. 10th
Street, Wilmington 99, Del. Underwriter—Havener Se¬
curities Corp., New York, N. Y. Offering—Imminent.

—For

ment.

134,739 shares of

Proceeds—For

Circle-The-Sights, Inc.

common

the retirement

tional working capital.
writer—None.

notes and addi¬

Office—Norwood, N. J.

Under¬

Dealers Discount Corp., Inc.
Aug. 1, 1960 (letter of notification) $300,000 of 7% sub¬
ordinated convertible sinking fund debentures, due July

March 30 filed 165,000 shares of common stock and $330,-

(10-year 8% redeemable). Price—For

stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
service. Office—Washington, D. C.
Underwriter—None.

1, 1975. Price—At face value. Proceeds—For working
capital. Address—Darlington, S. C. Underwriters—G. H.

•

Crawford

(8/23-24)
June 27,1960, filed 120,000 shares of common stock. Price
—To be supplied by amendment. Proceeds — Together

Co., Inc. and Frank S. Smith & Co., Inc., Co¬
lumbia, S. C. and V. M. Manning & Co., Inc., Greenville,

with other funds, will be used for repayment of $2,800,000 of bank loans which are expected to exist in such

Del Electronics Corp. (8/29-9/2)
July 26, 1960 filed 100,000 shares of common stock (par
10 cents). Price—$4 per share.
Business—The company

City Gas Co. of Florida

s. c.

amount at the time of closing the stock

financing, $500,complete the company's conversion and construc¬
tion program, and the balance for general corporate
purposes. Office—955 East 25th St., Hialeah, Fla. Busi¬
ness— The company and its subsidiaries distribute gas
through underground distribution systems in the Miami
000 to

are

makes, from

its own designs, and sells high voltage
supplies, transformers, chokes, and reactors. Pro¬
working capital, relocation, and expansion.
Office—521 Homestead Ave., Mount Vernon, New York.
Underwriters
Standard Securities Corp., New York
City, and Bruno-Lenchner, Inc., Pittsburgh, Pa.

power

ceeds—For

—

in the process of conversion from liqui¬

fied

petroleum gas to natural gas systems. Underwriter
—Kidder, Peabody & Co., New York.
•

Civic

—

• Colorado Bowling Alleys of Israel, Inc.
Aug. 12, 1960 filed 1,000 shares of class A common stock
(to be sold to promoters only), and 48,000 shares of class
B common stock. Price—For the
class B, $10 per share.
Proceeds—For the construction of
bowling alleys in the
major cities of Israel. Office—520 Eudora St., Denver,
Colo. Underwriter—None.
Commercial Banking Corp.

July 18, 1960 (letter of notification) $290,000 of 6% sub¬
ordinated debenture bonds due
April 1, 1960 with five
year warrants to purchase common stock.
Price—$965
per $1,000 debenture. Proceeds—For working capital.
Office—104 S. 20th St.,

Philadelphia, Pa. Underwriter—
Suplee, Yeatman, Mosley & Co., Inc., Philadelphia, Pa.

Commonwealth Electronics
Corp.
1, 1960 (letter of notification) 60,000 shares of
common stock
(par 10 cents). Price — $5 per
share. Proceeds—To purchase
machinery and equipment,

Aug,

class A

research and development and for
working capital. Ad¬
dressi — c/o Harold G.

w*»er^ Rico.
Md,

•

Suiter, Box 1061, Rio Piedras,
Underwriters —'.L. L, Bost Co.; Baltimore,

Consolidated Realty Investment
Corp.
April 27 filed 2,000,000 shares of common stock. Price—•
?1 per share. Proceeds—To establish
fund for initial and intermediate

$250,000 revolving
financing of the con¬
a

Deluxe

Aluminum

Products, Inc.

(9/6-9)

Oct. 15 filed $330,000 of convertible debentures, and 70,000 shares of common stock. Price—For the debentures,

Finance

Corp. (8/22)
July 6, 1960 filed $650,000 of capital notes, series due
1980 (subordinated), with warrants to purchase common
shares, and 40,000 shares of common stock. Price—To be
supplied by amendment. Proceeds—To be added to the
company's general funds to provide additional working
capital. Business—The company is engaged in commer¬
cial financing and supplies funds to business concerns
in Wisconsin and neighboring states. Office—530 North
Water St., Milwaukee, Wis. Underwriter
Robert W.
Baird & Co., Inc., Milwaukee, Wis.

100,000 shares of

stock (par 10 cents). Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Office—178 Herricks Road, Mineola, N. Y. Underwriter—General Securi¬
common

Co., Inc., New York, N. Y. Offering—Expected

time in September.

YY-

/Yyy-

some¬

East Alabama Express, Inc.
f4
April 1 (letter of notification) 77,000 shares of common
stock
(par $1). Price—$2.50 per share. Proceeds—To
repay notes payable, reduce equipment purchase obliga¬

tions, accounts payable and for working capital. Office
—109 M Street, Anniston, Ala.
Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.
Central

Inc.

Racing and Breeders

Association,

(9/15)

July 5, 1960, filed 200,000 units of 200,000 shares of cap¬
ital stock and 200,000 warrants to purchase capital stock,
Each unit will consist of
the

purchase of

100%

of principal amount; for the stock,

$5 per share.
10,000 shares of the common stock, to
the present holders thereof; from the rest of the offer¬
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami. Fla.
Proceeds—From

Underwriter— R. A. Holman &

Co., Inc.

Diversified Collateral

Corp* (8/29-9/2)
July 26, 1960 filed (with the SEC in Atlanta) 75,000
shares of common stock (par 10 cents). Price—$4 per
share. Business—Mortgage financing in Florida. Proceeds
—For additional working capital. Office—Miami Beach,
Fla. Underwriter—The Tager Co., 1271 6th Ave., New

one

share and

one

warrant for

stock. Price—
For additional
N. W., Wash¬
Co., Washing¬

Drug Associates, Inc.
May 6 (letter of notification) 100 units of $100,000 of 7%
sinking fund debenture bonds and 10,000 shares of com¬
mon stock (par $1) to be offered in units consisting of
one $1,000 debenture and
100 shares of common stock.
Price—$1,100 per unit. Proceeds—For general corporate
purposes. Office—1238 Corlies Ave., Neptune, N. J. Un¬
derwriter—Fidelity Securities & Investment Co., Inc.,
Asbury Park, N. J.
Dunbar

Development Corp. (8/22-26)
22, 1960 (letter of notification) 75,000 shares of

class A common stock

Price—$3.50

per

unit. Proceeds—First step in

surface and $25,000 to property accruement and mainten¬
ance,

is the construction of about 15 stables to

date 32 horses each at

estimated cost of

accommo¬

$22,500 each.

additional $200,000 has been allocated for construc¬
tion of a building covering an indoor training track

$74,000 for working capital. Office — Randall, N. Y.
Underwriter—None.
v
/W Y;
.

^ Eastern Shopping Centers, Inc.
Aug. 15, 1960, filed 1,048,167 shares of common stock to
be offered for subscription by holders of outstanding
stock

common

share held.

the

basis

(par 10 cents). Price — $4 per
share. Proceeds—For general corporate purposes. Office
—237 Sylvester St., Westbury, L. I., N. Y. Business—Pur¬
chase of land and building of homes. Underwriters—
Netherlands Securities Co., Inc., and J. A. Winston St
Co., Inc., New York, N. Y.

one

new

for

each

Price—To be

supplied by amendment. Busi¬
ness—The construction, development and management
of shopping centers. Proceeds—To be added to the gen¬
eral funds for working capital and general corporate
purposes.
Office—6L Mall Walk, Cross County Center,
Yonkers, N. Y. Underwriter—None,
•

Edwards

Engineering Corp.

(8/25)

8 filed

85,000 shares of common stock of which
70,000 shares are to be offered for the account of the
issuing company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof.
Price—$3.50 per share. Pro¬
ceeds—For general corporate purposes including sal¬
aries, sales promotion, moving expenses, and research
and development work.
Office—715 Gamp Street, New
Orleans, La. Underwriter—Sandkuhl & Company, Inc.,
New York City and Newark, N. J.
April

•

EEectri-Cord

Manufacturing Co. Inc. (8/29-9/2)
(letter of notification) 99,900 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
For general corporate purposes.
Office—2554 E. 18th
Street, Brooklyn, N. Y. Underwriter—E. M. North Co.,

June 15

stock

Inc., New York, N. Y.
•

Industries,

Electromagnetic

June

(8/22-23)

Inc.

75,000 shares of
(par 10 cents). Price—$4 per share. Pro¬
ceeds—For general corporate purposes. Office—Greeley
Ave., Sayville, L. I., N. Y. Business—Manufactures and
sells transformers, magnetic components and electric in¬

22,

common

(letter of notification)

1960

stock

strumentation

and

control

devices.

Underwriter—Flo-

menhaft, Seidler & Co., Inc., New York, N. Y.
Electronic Specialty Co. (8/22-26)
2 filed 150,000 shares of common stock

June

cents).
be

(par 50
Price—To be supplied by amendment. Proceeds
added to the general funds in anticipation of

capital requirements,

Diversified Realty Investment Co.

April 26 filed 250,000 shares of common
$5 per share (par 50 cents). Proceeds —
working capital. Office—-919 18th Street,
ington, D. C. Underwriter—Ball, Pablo &
ton, D. C.

•

additional share exercisable within

the management's program if this financing is successful
and after allocating $10,000 to finishing a training track

—To

York City.

June

and

(8/29-9/2)

stock, to be
offered for subscript/on by holders of such stock of
record May 2 at the rate of one new share for each
two shares then held. Price—To be supplied by amend¬

April 19 (letter of notification) 262,750 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds

which

Dynatron Electronics Corp.
1960 (letter of notification)

April 29,

12 months.

Dakota

Inc.

Chemtree Corp.

area

Dynamic Center Estgineering Co., Inc.
20, 1960 (letter of notification) 37,450 shares of
common
stock (par $1). Price—$4 per share. Proceeds
—To promote the sale of new products, for the purchase
of additional equipment and working capital. Address—
Norcross, Ga.
Underwriter—Gaston-Buffington-Waller
Inc., Atlanta, Ga.
June

—

Md. Underwriter—None.

—

000 of debentures

principal amount of senior subordinated debentures ma¬
turing Dec. 31, 1960, and the balance toward the reduc¬
tion of outstanding trade acceptances of the company.
Office—1200 Carr
St., Houston, Texas. Underwriter—
Bear, Stearns & Co., New York City.

East

Underwriter—Pleasant Securities
J

Packaging Co.,

260,000 shares of capital stock (par
supplied by amendment. Business—
in importing, processing, packaging
own blended coffees, marketed prin¬
trade names "Maryland Club" and
"Admiration." Proceeds
To pay $2,050,000 aggregate

ties

conditions.

market

(8/22-26)
March 16 (letter of notification) 115,000 shares of com¬
mon stock
(par 10 cents). Price—$2.50 per share. Proceeds
For general corporate purposes.
Office —755
Utica Avenue, Brooklyn, N. Y. Underwriters—Mainland
Securities Corp., 156 N. Franklin Street, Hempstead, N
Y. and Jeffrey-Robert Corp., 382 S. Oyster Bay Road,
Hicksville, L. I., N. Y.
Chemical

Corp.

it Custer Channel Wing Corp.
yy/y
Aug. 8, I960-(letter of notification) 461,700 shares ofcommon
stock. Price
At par (five cents per share).
Proceeds—For flight testing, manufacturing and sale of
aircraft. Office
1905 W. Washington St., Hagerstown,

ing stock, by the present holders thereof. Price—$3 per
share. Proceeds—For general corporate purposes. Office
—122 East 42nd Street, New York, N. Y. Business—In¬
tends to manufacture and market high heat resistant

•

8, 1960, filed 50,000 shares of capital stock, of
which 25,000 shares are being offered for the account of
the company, and 25,000 shares for the account of sell¬
ing stockholders. Price—At-the-market at time of offer¬
ing. Proceeds—For additional working capital. Office—
5575 Kearney Villa Road, San Diego 11, Calif. Under¬
writer—Hayden, Stone & Co., New York City. Note—
This offering has been indefinitely postponed due to

Chematomics, Inc. (8/22-26)
June 24, 1960, filed 188,300 shares of common stock (par
10 cents), of which 175,000 are to be offered for public
6ale by the company and 13,300 shares, being outstand¬

Co., Newark, N. J.

Associates, New York City.

June

—

exchange resins.

public offering, $2 per share. Proceeds—To repay a

Maher

6% subordinated partici¬
pating debentures at 110% of principal amount, to in¬
crease working capital, and to reduce indebtedness. Of¬
fice—620 11th Street, N. W., Washington, D. C. Under¬
writer
Auchincloss, Parker & Redpath, Washington,

ion

loan, for salaries, operating expenses, purchase of
land, construction of a new laboratory and working cap¬
ital. Office—Washington, D. C. Underwriter—John R.

charge account service and credit facilities for merchants
by discounting customers' sales tickets.
Proceeds—To

(9/6-9)

Co.

Aug. 4, 1960, filed
$1). Price—To be
Engaged primarily
and distributing its
cipally under the

bank

common

redeem $300,000 of outstanding

Co., Inc., New York City.

it Cryogenics Inc.
r
Aug. 16, 1960 filed 236,000 shares of common stock, of
which 175,000 shares are to be offered for public sale,
and the balance will be sold to promoters. Price—For

writer—None.

ditional 60,000 common shares.
amendment. Business — The

Inc.

par common

$15 per share. Proceeds—To finance the company's anti¬
cipated growth and for other general corporate purposes.
Office—42-15 Crescent St., Long Island City, N. Y. Un-

rants

Croft Carpet Mills,

Aug. 8, 1960

Wis. Underwriter

Co., Milwaukee.

Central Charge Service, Inc.

Thursday, August 18, 1960

—

•

purposes.

Cavitron Corp.
June 17, 1960,

Duncan Coffee

buildings

Office—5121

San

to include acquisitions.
Road, Los Angeles, Calif.

possibly

Fernando

Underwriters—Reynolds & Co., Inc. of New York City
and Bateman, Eichler & Co. of Los Angeles, Calif.
Electro

July

19,

class A

Industries, Inc.
(letter of notification)

1960

common

tional class A

75,000

stock (no par) and 20,000 shares of addi¬
stock to be offered to the under¬

common

writers.

Prices—Of class A common, $2 per share; of
additional class A common, 2% cents per share. Proceeds
—To expand the company's
inventory to go into the
packaging and export of electrical equipment, and for

working capital. Office—1346 Connecticut Ave., N. W.,
Washington, D. C. Underwriter — Carleton Securities
Corp., Washington, D. C.
J :
Electro-Tec Corp. (8/22-26)
July 1, 1960, filed 135,000 shares of
10

cents), of which 75,000 shares

common

are

stock

(par

be offered for

public sale for the account of the issuing company and
60,000 shares, being outstanding stock, by the present
holder thereof.

Price—To be supplied by amendment.
Proceeds—To be added to the
company's general funds
and be used for general corporate purposes. Office—10

Volume

192

Number

5978

The Commercial and Financial

Chronicle

(687)

Romanelli Ave., South Hackensack, N. J.
Business—
Design, development, manufacture and sale of slip ring
and brush block assemblies, switching devices and re¬
lays for electronic equipment. Underwriter—Harriman
Ripley & Co., Inc., New York.
Ennis

Business

Forms,

Inc.

selling stockholders. Office — 214 West
St., Ennis, Texas. Underwriter—Kidder, Peabody

Co., New York City.
1960

common

stock

Corp.

(for the

New York City.

April 26 filed

common

125,000 shares

Gold Medal

ttied.

/i'M'-.

which certain inventories

Price—

sioek.

Co.

pledged

collateral.

The

initially incurred on
15, 1960 in connection with refinancing the com¬
pany's obligations to a bank. In addition, $15,000 will

per share.
Proceeds—$100,000 for research and de¬
velopment, $200,000 for working capital, and the balance

for

sales

N. J.

promotion

expenses.

Underwriter—Fund

Office

—

Cedar

Grove,

was

July

27,

for

the

construction

additional

smoke¬

be used for general corporate
Office—614 Broad Street, Utica, N. Y. Busi¬
ness—The company is engaged in the
processing, pack¬
ing and distribution of meats and meat products, prin¬

purposes.

1960

filed 120,000 shares of capital stock.
supplied by amendment. Business—The
company and its subsidiaries will produce and market
Price—To

used

house, and the balance will

Planning, Inc., New York City.

Four Star Television

(letter of notification) 2,000,000 shares of
(par five cents). Price — 12V2 cents per

are

indebtedness to Jones

(8/29-9/2)

class

pre¬

stock

(par $4).
Price—At par.
Proceeds—Ap¬
proximately $150,000 will be used to discharge that
portion of its obligation to Jones & Co. pursuant to

only), both of

Packing Corp.
1960, filed 100,000 shares of 25c convertible

June 17,

June

Evergreen Gas & Oil Co.
June 20,

Higginson

Foto-Video Electronics Corp.

Proceeds—To

Lee

(9/12-16)

July 14, 1960, filed 74,546 shares of outstanding common
stock (par $2.50). Price—To be supplied by amendment.
Knox

property improvements, the repayment of indebtedness,
and the balance for working capital. Office—Ft. Lauder¬
dale, Fla. Underwriters—P. W. Brooks & Co. Inc. and

share. Proceeds—For expenses for oil and gas develop¬
ment. Office—E. 12707 Valleyway, Opportunity, Wash.

television film series and

Underwriters—Standard Securities Corp. and Pennaluna

—For general corporate purposes.

& Co., Spokane, Wash, and Herrin Co.,

Ave., North Hollywood, Calif. Underwriter—DempseyTegeler & Co., St. Louis, Mo. (managing). Offering-

City.

Expected in early September.

March 30 (letter of

Seattle, Wash.

Fae Instrument

Corp.
July 28, 1960 (letter of notification)
common stock
(par 10 cents). Price
Business

—

manufacture

The

technical

Proceeds—For payment of current

sion

St.,

Long

Island

K.' Aagaard,

Elmer

Suite

shares of
per share.

instruments.

liabilities,

and for operating capital.

program,

Hunter

60,000
—
$5

expan¬

Office—42-61

City 1, N. Y. Underwriter—
6, Stock Exchange Bldg., 39

Exchange Place, Salt Lake City, Utah.

;

Fairmount Finance Co.

(letter of notification) 58,000 shares of class A.
stock (par $5). Price—At par ($5 per share).

May'6

common

Proceeds—For

working

capital.

Office—5715

Sheriff

Road, Fairmount Heights, Md. Underwriter—J. T. Pat¬
terson & Co., Inc., 40 Exchange Place, New York, N. Y.
Offering—Imminent.

ifFarm & Home Loan & Discount Co.
(letter of notification) 125,000 shares of
class A common stock; 50,000 shares of class B common
4,

Aug.

1960

stock, and 50,000 shares of class C common stock, to be
sold to policyholders of the company. Price—Class A, 25
cents per share; class B, 35 cents per share, and class C,
50 cents per share. Proceeds—For working capital. Of¬
fice—2225 N. 16th St., Phoenix, Ariz. Underwriter—None.

Farms,

Inc.

June 13

(letter of notification) $298,000 of 10-year 5%%
debentures, to be offered in denominations of $1,000,

each. Price—At face value. Proceeds—
For working capital. Office—818 17th Street, Denver 2,
Colo. Underwriter—Wayne Jewell Co., Denver, Colo.
$500 and

$250

Federal Pacific Electric Co.

Aug. 2, 1960 filed 377,000 scares of common stock and
$45,000 shares of outstanding 5x/2% convertible second
preferred series A stock, of which 127,000 common
shares represent part of the issuer's payment for allsof
the

outstanding

The

balance

common

will

Pioneer

Electric

Limited.

offered

publicly. Price —- To :be
supplied by amendment. Proceeds—To acquire the cash
necessary to complete the Pioneer payment (see above),
with

the

balance

to retire short-term bank loans, and
working capital. Office — 50 Terrace St.,
Newark, N. J. Underwriter—H. M. Byllesby & Co., I$c.,
Chicago, 111., (managing).
^

added

Fiber

July 21,

Corp. of America
(letter of notification) 100,000 shares -of

1960

common

stock

Industries

Glass

(par 10 cents) of which 80,000 shares are
behalf of the company and 20,000^n

offered

behalf of the underwriter. Price—$3 per share. Proceeds

—To purchase

material, repayment of

loan, for adver¬

tising and promotion and for working capital. Office—
730 Northwest 59th St., Miami, Fla. Underwriter—Nelson
Securities, Inc., Hempstead, N. Y.
Fidelity Electronics Corp.
July 11, 1960, (letter of notification) 150,000 shares of
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For general corporate purposes. Office—Fairview
& Hancock Streets, Riverside, Burlington County, N. J.
Underwriter
Metropolitan Securities, Inc., Philadel¬
phia, Pa.

Aug. 12, 1960 filed 225,000 shares of common stock (par
$1). Price—$10 per share. Proceeds—To retire $150,000
of

debentures, and for capital for loans for small busi¬
Office—955

nesses.

Main

St.,

Bridgeport, Conn. Under¬

writer—Grimm & Co. of New York City.

First Investors Corp.

July 19,

outstanding class
supplied by amendment.
Proceeds—To selling stockholders. Office — New York
City. Underwriter—Bache & Co. Offering—Expected in
early September.

1960, filed 270,000 shares of

common

stock. Price—To be

Fischbach

Moore, Inc. (8/22-26)
June 28, 1960, filed 300,000 outstanding shares of com¬
mon stock. Price—To be supplied by amendment.
Pro¬
ceeds—To selling stockholders. Office—New York City.
Underwriter—Allen & Co., New York City.
Fleetcraft Marine Corp.

July 5,

Mfg. Corp. (9/1,-15)
July 5, 1960, filed 100,000 shares of common stock (par
$1) of which 30,000 shares are to be offered for public
sale for the account of the issuing
company, and 70,000
shares, being outstanding stock, by the present holders
thereof.
Price—To be supplied by amendment.
Busi¬
ness—Company is engaged in the production and sale
of popularly priced blouses and sportswear coordinates

account

Proceeds

(letter

the

—

selling stockholder. Price—$2 per share.
pay off debts and for working capital.

Office
c/o Robert R. Chesley, 1235 E. Florence Ave.,
Los Angeles, Calif. Underwriter—Garat & Polonitza, Inc.,
Los Angeles, Calif. Note—The underwriter states that
—

this offering has been indefinitely postponed.

★ Florida Kiltsboro Corp.
Aug. 16, 1960 filed $1,000,000 of junior lien bonds, 7%
series, due 1975, and 150,000 shares of common stock,
to

offered

common

120,000

stock.

units of

$500 bond

Price—For the

common

shares, $1

per

and 75

shares of

unit; for
share. Proceeds — For

units, $500

per

Gross Furnace

for

girls and

Guardian Central

are

$1).

builder for

its

own

Proceeds

—

For

added

stock (par
Business—

common

amendment.

funds, for requirements including
accounts

Metuchen, N. J.

Brothers

and

Walker

Co., both of New York City (managing).

debt

• Hallicrafters Co.
(9/19-23)
July 22, 1960 filed 300,000 shares of capital stock (par
$1), of which 100,000 shares are to be offered for the
account of the issuing company and the balance,
repre¬
senting outstanding stock, is to be offered for the ac¬
_

Funded Security Corp,
July 7, 1960, filed 200,000 shares of common stock. Price
—To be supplied by amendment. Business—The issuer
is a holding company organized under Illinois law in
December, 1959. Proceeds—$600,000 will be transferred
to the general funds of Funded Security Life Insurance

count of the present holders thereof. Price—To be sup¬

newly organized legal reserve life insurance com¬ ;
wholly owned by the issuer, for investment in in¬

the general

Underwriters—Lehman

capital. Office—141 North Ave.,
Bridgeport, Conn. Underwriter—Van Alstyne, Noel &
Co., New York City (managing). Offerings-Expected in
late September.
\

pany

additional working capital for inventories and
receivable. Office — 212 Durham
Ave.,

reduction and working

Co.,

be supplied

research, development and manufacture of elec¬
tronic, electro-mechanical and electro-acoustic compo¬
nents, instruments and equipment, which are sold to
military and commercial manufactures. Proceeds—To be

to be offered for the account

account.

Price—To

The

selling stockholders and the balance for the account
of the issuing company.
Prices — To be supplied by
amendment. Business—The company is engaged in the
construction business, both as a general contractor and
a

if Gulton Industries, Inc. (10/4)
Aug. 11, 1960 filed 100.000 shares of

Trust, Inc.
shares of

are

Guardian

Co., of San Francisco and New York.

Discount Co.
Office—1415
Union
Avenue,
Memphis, Tenn. Underwriter—James N. Reddoch & Co.,
Memphis, Tenn.

Frouge Corp.
July 22, 1960 filed $1,500,000 of 6x/2% convertible sub¬
ordinated debentures, due September 1975, and 150,000
shares of common stock (par $1), of which filing 50,000
common

filed 484,862

common stock, of which
publicly offered, and the re¬
maining shares are reserved for the acquisition of the
stock of Guardian Discount Co.
Price—$6 per share.
Proceeds—From the public offering, to be invested in

subsidiary,
Corp. the building presently used by the com¬
pany. Office—167-199 First Street, San Francisco, Calif.
Underwriters—Bear, Stearns & Co., of New York, and

of the

200,000

Proceeds—From the stock sale, arid
$293,092.75, will be
Realty, a wholly
to* purchase for cash from 177-First

capital. Office—c/o Joseph J. Gross, 2411 Sunnybrook
Road, Richmond, Va. Underwriter—Maryland Securities
Co., Inc., Baltimore, Md.
June

Street

Schwabacher

mon

women.

owned

Manufacturing Co., Inc.

notification) 120,000 shares of comstock (par 10 cents).
Price — $2.50 per share.
Proceeds —- For advertising,, equipment and
working

funds from working capital, totalling
contributed to the capital of Fritzi

producing securities and expansion through ac¬
quisition. Office—2812 W. Peterson Ave., Chicago, 111.
Underwriters—H. M. Byllesby & Co., Chicago, and Kalcome

plied by amendment. Business—The research, develop¬
ment, and manufacture of military electronic equip¬
ment, and the commercial manufacture and sale of short¬
wave sending and
receiving equipment. Proceeds—For
working capital, including the reduction of indebtedness
by $1,000,000. Office—4401 W. Fifth Ave., Chicago,, 111.

Underwriter—Paine, Webber, Jackson & Curtis (manag¬
ing).
•

Harvest

Brand, Inc.

(9/15)

July 22, 1960 filed 191,667 shares of common stock (10c
par), of which 150,000 shares will be sold for the account
of the issuing company and
Gateway Sporting Goods Co.
41,667 shares, representing
outstanding stock, will be sold for the account of the
July 7, 1960 filed 70,000 shares of common stock (par
$5). Price—To be supplied by amendment. Proceeds- / present holders thereof. Price — To be supplied by
man

Co., Inc., St. Paul, Minn.

Together with the proceeds from an anticipated $700,000
loan from an insurance company, will be used to retire

amendment. Business—The
in

the

$425,000 bank loan and to finance the company's ex¬
pansion program. Business—The company is principally
a
retail
organization specializing in sporting goods,

feed

photographic equipment, toys, wheel goods, luggage and
related recreational lines. Office—1321 Main St., Kan¬
sas City, Mo. Underwriter—Stern Brothers & Co., Kan¬
sas City, Mo.
General Sales Corp.

April 28 filed 90,000 shares of common stock (par $1).
supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
and facilities for the Portland Discount Center; $75,000
Price—To be

same purposes in the Salem Center; and $50,000
provide working capital for General Sales Acceptance
Corp. for credit sales to member customers.
The bal¬
ance of the proceeds will be used to open two new stores
in Oregon and Idaho. Office — 1105 N. E. Broadway*
Portland, Ore. Underwriter — Fennekohl & Co., Inc.,
New York. Offering—Expected in late August.

•

General Steel Castings Corp.

(9/15)

July 22, 1960 filed 296,649 shares of common stock (par

$1), of which 100,000 shares are to be offered for the
account of the issuing company

and the balance,

repre¬

stock, will be offered for the ac¬
count of the present holders thereof. Price—To be related
to the market price for the shares at the time of the
offering. Proceeds—To be loaned to St. Louis Car Co., a
subsidiary. Office — 1417 State St., Granite City, 111.
Underwriter
Hornblower & Weeks, New York City
(managing).
senting

Glen

Aug.

8, 1960 filed 125,000 shares of common stock, of
100,000 shares are to be offered for the account
issuing company and 25,000 shares, representing

which
of

the

are to be offered for the account of
holders thereof. Price—$10 per share. Busi¬
ness—The company makes and sells ladies clothes, bath¬
room
fixtures, and, through Mary Lester Stores, yard
goods, sewing supplies, decorating fabrics, and various
notions. Proceeds—For working capital, including, ini¬
tially, the reduction of short term bank loans which ag¬
gregated $2,650,000 on July 25. Office—320 East Buffalo
St. Milwaukee Wis. Underwriter—Loewi & Co., Mil¬
waukee, Wis. (managing).

outstanding stock,

the present

is engaged

primarily

retire

long-term debt; for a new automated plant, and for additional working capital. Office —
Pittsburgh* Kansas.
Underwriter—S. D. Fuller & Co., New York
City.
Hawaiian

Electric Co., Ltd.
1960 filed 116,643 shares of

July 25,

common

stock, to

be offered to holders of the
outstanding common on the
basis of one new share for each
eight shares held. Price
—To be

supplied by amendment. Proceeds—For capital
expenditures. Office—900 Richards St., Honolulu, Hawaii.
Underwriter—None.
Hawaiian
June

Pacific

Industries, Inc.

29, 1960, filed $1,350,000 of 6V2% convertible sub¬

ordinated

debentures, due September, 1970, and 100,000
shares of common stock.
Price—Debentures, at 100% of
principal amount; common stock at a maximum of $10
per share. Proceeds -r- For construction
expenses, new

equipment, reduction of indebtedness, and the acquisi¬
tion of properties. Office —
Honolulu, Hawaii. Under¬
writers— Bosworth, Sullivan & Co. and
Lowell, Murphy
& Co., both of

Denver, Colo. Offering—Expected in early

September.
•

outstanding

Manufacturing, Inc.

issuer

formulation, manufacture, distribution, and sale
supplements, minerals, and pre-mixes for the

livestock industry in the mid-west. Proceeds—To
'

for the

-—

notification) 150,000 shares of
capital stock (no par) of which 112,500 shares are being
offered by the company and
the remainder for the
1960

products, smoked meats, bacon, and meat
It also sells certain dairy products.
Under¬
writer—Ernst Wells, Inc., 15 William
Street, New York
sausage

specialties.

Fritzi of California

—

First Connecticut Small Business Investment Co.

cipally

enterprises. Proceeds
Office—4030 Radford

„

Heldor Electronics

June

Manufacturing Corp.

(9/6-9)

29, 1960 (letter of notification)

common

stock (par 10

ceeds— For

general

100,000 shares of
Price—$3 per share. Pro¬
corporate purposes.
Office — 238
cents).

Lewis

Street, Paterson, N. J. Underwriter—S. Schramm
Co., Inc., New York, N. Y.

Helicopters, Inc.
May 19 (letter of notification) 60,000 shares of common
stock (par $1).
Price — $5 per share. Proceeds — For
purchase of equipment, tools, inventory and working
capital. Office—Heliport, Stapleton Airfield, Denver 2,
Colo.

Underwriter—Insurance Stocks, Inc., Denver, Colo.
Offering—Expected in late August or early September.
Home Builders Acceptance

Corp.

July 15, 1960 filed 1,000,000 shares of common stock (par
50c). Price—$1 per share. Business—The company is

engaged in real estate financing and lending. Proceeds
general
corporate
purposes.
Office — 409
N.
Nevada, Colorado Springs, Colo. Underwriter—None.
—For

Continued

r ;

on page

Continued from page

and

Pro¬

recently developed actuating programmer.

•

Honey Dew Food Stores,

100%.

—

$300,000 of 1Vz%

debentures due July 1, 1970.
These debentures are convertible

subordinated

convertible
Price

Inc.

(letter of notification)

1960

24,

July

1962 to

share from July
ceeds

Infrared Industries,

(8/23)
July 6, 1960, filed 135,000 shares of common stock (with¬
out par value), 100,000 shares of which are for the com¬
pany and the balance for the account of certain stock¬
holders.
Price—To be supplied by amendment.
Pro¬
ceeds—Approximately $700,000 will be used to construct
and equip the Santa Barbara, Calif, plant for which the
company has recently acquired acreage, $450,000 will be
used to discharge indebtedness of the company and a
subsidiary, and the balance will be used for general cor¬
porate purposes including working capital.
Business—
The company produces infrared detectors for most of the
infrared
systems under procurement
by the Armed
Forces of the United States and for civilian use as well.

June 30, 1964 inclusive and at $4 per
1, 1964 to June 30, 1965 inclusive. Pro¬

Office

For general corporate purposes.

—

811

—

Rd., Teaneck, N. J. Underwriter — Vickers,
Christy & Co., Inc., 15 William St., New York 5, N. Y,

Grange

•

Hyak Skiing Corp.

July

notification)

(letter of

I960

18,

stock. Price—At par

common

30,000 shares of

($10 per share). Proceeds

general corporate purposes. Office—c/o Frederick

—For

City (managing).

Unterberg, Towbin Co., both of N. Y.

through June 30, 1965 into capital stock at $2.50 per share
to and including June 30, 1962, at $3.33y3 per share from

Voorhees, 8422 N. E. 10th St., Bellevue, Wash. Un¬
derwriter—Columbia-Cascade Corp., Seattle, Wash. Of¬
fering—Imminent.
D.

Thursday, August 18, 1960

outstanding first mortgage note; for machinery
promissory note; and for work¬
ing capital. Office — 347 King St., Northampton, Mass.
Underwriter—Putnam & Co., Hartford, Conn, (manag¬
ing.) Offering—Expected in early October.
repay

general corporate purposes, including con¬
struction, additional personnel, and the reduction of
indebtedness. Office—1407 McCarter Highway, Newark,
N. J.
Underwriters — G. H. Walker & Co. and C. E.
ceeds—For

June

Chronicle

The Commercial and Financial

(688)

Inc.

and equipment; to pay a

it Last Frontier Gil Co., Inc.
Aug. 8, 1960 (letter of notification) 150,000 shares of
common stock. Price—At par ($2 per share). Proceeds—
For completion costs, taxes, legal and accounting fees,
accounts payable, accrued payroll, retirement of loans,
and

miscellaneous related expenses. Address—P. O. Box

2464, Reno, Nev. Underwriter—None.

it Lawndale Industries, Inc.
Aug. 15, 1960 filed 100,000 shares of class A stock. Price
—$5 per share. Business—The manufacture of porcelain
enameled steel plumbing fixtures. Proceeds — For the
construction and equipping of a new plant, and the re¬
duction of outstanding bank loans. Office — Haven &
Russell Aves., Aurora, 111. Underwriter—Paul G. Kimball
& Co. of Chicago, 111. *
: '
,

Office—Waltham, Mass. Underwriter—Lehman Brothers,
New York City.
'
'

•

Hydrometals, Inc.
June 16, 1960 filed $2,464,000 of 6% convertible subordinated debentures, series A, due July 1, 1972. The com¬
pany
is offering the debentures for subscription by
stockholders of record Aug. 9, on the basis of $100 prin¬
stock

held, with rights to expire on Aug. 25. Proceeds—
Approximately $490,000 will be used to retire loans
made to furnish working capital and to finance the com¬
program, and $300,000 will be
loan made to finance the acquisition of a

Hydro-T-Metal

pany's

used to retire

license

electrothermal process for the
production of metals from oxides and ores. The balance
of such proceeds will be added to the general funds of
the company. Office — 405 Lexington Ave., New York
City. Underwriter—H. M. Byllesby & Co., Inc., Chicago,
practice

1960, filed 130,000 shares of its common stock
cents). Of the total, 50,000 shares are being
80,000 shares by
certain stockholders. Price—To be supplied by amend¬
ment. Proceeds—For general corporate purposes.
Busi¬
ness
The manufacturing and marketing of materials
handling equipment. Underwriter — Blyth & Co., Inc.,

(par

and
the balance will be added to the general funds to finance
the development of general life insurance agency and for
working capital. Office—Sacramento, Calif. Underwriter
—Schwabacher & Co., San Francisco, Calif, and New
York

—

New York.

June 29

(8/25)

filea

Price—$2.50

buu,(J00 shares of

common

stock

(par $1)

share. Proceeds—To further the corpo¬
and in the preparation of the concentrate

and

enfranchising of bottlers, the local and national pro¬
and advertising
of its beverages, and whert
necessary to make loans to such bottlers, etc. Office—

motion

704 Equitable Bldg., Denver. Colo. Underwriters— Pur¬

vis &

Co.

and Amos

Sudler

Co., both of Denver,

Colo.
•

Precision

Components Corp. (8/25)
(letter of notification) 200,000 shares of
common stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For general corporate purposes.
Office — 89-25
Van Wyck Expressway, Jamaica 35, N. Y. Underwriter
—-R. A. Holman & Co., Inc., New York, N. Y.
June

29,

1960,

Illinois Beef, L. & W. S.,

April

filed

stock.

200,000

Proceeds—To

share.

Inc.
of outstanding common
selling stockholders.
Price—$10
shares

Craig Street, Pittsburgh,
Pa. Underwriters—Amos Treat & Co., Inc., New York,
and Bruno Lenchner, Inc., Pittsburgh, Pa. Offering—
Expected sometime in September.
per

South

Office—200

^ Indian Head Mills, Inc.
Aug. 10, 1960 filed 60,000 shares of outstanding
stock
for

(par $1), of which 50,000 shares

are

common

to be offered

the

account of present holders, and the
remaining
shares being registered pursuant to an option agreement.
Price—To be supplied by amendment. Business—Pro¬

duction and distribution

fabrics, and related services
selling stockholders.
Office—111 W. 40th Street, New York City. Underwriters
—Blair & Co. and F. S. Smithers &
Co., both of New
York City (managing).
Offering—Expected in late Sep¬

for fabric converters. Proceeds—To

tember

early October.

Indian

Trail Ranch, Inc.
1960, filed $585,000 of 6% convertible promis¬
sory notes due 1965; 171,600 warrants to purchase the
said notes; and 57,200 common shares issuable
upon con¬
version of the notes.
at

The company proposes to offer its

stockholders

common

rights to subscribe to the notes
the rate of $5 principal amount of
notes for each share

of common stock

held.

Each

stockholder is entitled to

one

subscription right for each share
rights are required to subscribe for
amount

held;
one

$15, the minimum subscription.

and

note

three
in

the

Business—

The company is authorized to
engage in a general farm¬
ing and ranching business.
Proceeds
To enable the
company to obtain the necessary funds required to meet
—

various

financial

commitments

connection

with

its

bank

loans, mortgage payments and carrying charges
respect to some 44,000 acres.
Office — Southern
Blvd., West Palm Beach, Fla. Underwriter—None.
with

Industrial

July 22
Price—$1
Proceeds

Development Bank of

1960
per
—

Israel

Limited

filed

10,000,000 6% preference C shares.
share, payable in cash or in Israel bonds.

For

use

economy.

Office—113

Allenby

Road,

Tel-Aviv, Israel.
Underwriter—Harry E. Brager Associates, Washington,
D. C. and New York
City. Offering—Expected sometime
in

September.

Industrial Timer Corp. (9/6-9)
July 28, 1960 filed 75,000 shares of common stock
(par
$1). Price—To be supplied by amendment. Business—
The manufacture and sale of

N. J. Underwriter—Ernst Wells,

City,

timing

controls,

relays,

Inc., New York

mortgage payment, outstanding notes, construction
water supply and general corporate purposes.

new

Office—719 Harrison

Ave., Leadville, Colo. Underwriter

—H. M. Payson & Co., Portland, Me.
Lee Electronics Inc.

(letter of notification) 135,000 shares of
(par 10 cents). Price—$2 per share. Pro¬
ceeds—To expand operations. Office—3628 Rhawn St.,
Philadelphia, Pa. Underwriter — Atlantic Equities Co.,
Washington, D. C.
1

1960

14,

stock

Lence

Lanes,

Inc.

July 22, 1960 filed 175,000 shares of common stock (par
$1). Price—$6 per share. Business—The company oper¬
ates automatic bowling centers, associated ventures such

restaurants, bars, and luncheonettes, sells supplies,
rent lockers, shoes, and meeting rooms.
Proceeds
reduce indebtedness, complete Garfield Lanes in
Jersey City, N. J., and for working capital. Office—4650
Broadway, New York City. Underwriter—Marron, Sloss
& Co., Inc., New York City (managing). Offering—Ex¬
pected sometime in September.
as

City.

and

International Saff lower Corp.

Aug.

1960

(letter

notification)

60,000

stock

(par $2).
Price—$5 per share.
Proceeds—To retire outstanding loans, purchase of plant¬
A

class

common

ing seed, lease or purchase land, building and machinery
and for working capital. Office — 350 Equitable Bldg.,

Denver, Colo. Underwriter
Springs, Colo.
Investor Service

—

Copley & Co., Colorado
-

;':V

Fund, Inc.

July 14, 1960, filed. 100,000 shares of common stock.
Price—$10 per share, in 100-share units. Business—The

which has not

yet commenced operations,
intends to offer investors a chance to participate in
diversified real estate ventures. Proceeds—To purchase
all or part of the Falls Plaza Shopping Center, Falls
Church, Va. Office—1823 Jefferson Place, N. W., Wash¬

company,

ington, D. C. Underwriters—Investors Service Securities,

—To

Lifetime

•

Price

—To be supplied by amendment. Business—Engaged in
the manufacture and selling of fiber glass swimming

pools. Proceeds—$125,000 will be used to purchase ma¬
chinery
and
equipment;
$200,000 to
purchase
raw
materials, parts and components; $40,000 for sales and
advertising promotion; $30,000 for engineering and de¬
velopment; and the balance will be added to working
capital. Office—Renovo, Pa. Underwriter—First Penn¬
ington Corp., Pittsburgh, Pa.
Louisiana

Irving Fund for Investment in U. S. Government

Securities, Inc. '
July 22, 1960, filed 400,000

Pools

Equipment Corp.
July 1, 1960, filed 100,000 shares of common stock.

Inc., and Riviere Marsh & Co., both of Washington.

Gas

Service

Co.

June 10, 1960, filed 670,000 shares of common stock

$10)

to be issued by Louisiana Power

(par
Co. to

& Light

shares of common stock.
share. Business —A diversified invest¬
which will become an open-end company
with redeemable shares upon the sale and issuance of
the shares being registered.
Proceeds—For investment
in U. S. Government securities. Office—50 Broad Street,
New York City. Underwriter—To be supplied by amend¬

stockholders of Middle South Utilities, Inc., on the basis
of one share of Louisiana Gas Service Co. common stock

ment.

Lytton Financial Corp. (9/6-9)
26, 1960 filed 354,000 shares of capital stock, of
which 187,500 shares are to be offered for the account
of the issuing company and 166,500
shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof.
Price—To be supplied by

Price

$25

—

per

ment company,

Attorneys

—

Brinsmade

Shafrann,

Pine

Street, New York 5, N. Y.

writers—Morris Cohon &
both

New

Kent

20,

common

Company and Schrijver & Co.,

York.

Publishing Co., Inc.
1960 (letter of notification) 50,000 shares of
stock (par $1). Price—$1.10 per share. Proceeds

—To retire

short term note and for general corporate

Office—619 Southeastern Bldg., Greensboro,
Underwriter—McCarley & Co., Inc., Asheville, N.C.

purposes.

N.C.
•

King Electronics Co.,

Inc.

(9/6-9)

The company proposes to
in

stock

offer these securities for public
units, each consisting of one share of common

and

one-half

common

stock

purchase

warrant.

Proceeds—$165,000 will be applied
to the repayment of certain loans, $75,000 for develop¬
ment and design work by a subsidiary in the field of
infra-red instrumentation,
$100,000 for continued re¬
search in the design, development and production of
components for microwave instruments, and the balance
for working capital. Office—40 Marbledale Road, Tuckahoe, N. Y.
Underwriters — Ross, Lyon & Co., Inc.;
Globus, Inc.; Reich & Co.; Harold C. Shore & Co. and

Price—$4

per

unit.

Godfrey, Hamilton, Magnus & Co., all of New York City.

KolEmorgen Corp.
July 29, 1960 filed 80.330 shares of common stock (par
$2.50) of which 35,000 shares are to be offered for the
account of the issuing company and 45,330 shares, repre¬

senting outstanding stock, are to be offered for the ac¬
count of the present holder thereof. Price—To be sup¬

plied by amendment. Business—The company makes op¬
tical equipment, including submarine periscopes, torque
motors, and other electro - mechanical and electronic
equipment. Proceeds—To redeem all of the outstanding
7%

cumulative

(with

common

stock of Middle South held

additional subscription privilege); rights begin

August and expire in September. Price—To be sup¬
plied by amendment. Proceeds—All to be paid to Louisi¬
ana Power & Light Co. Underwriter—None.

amendment.

Proceeds—$2,100,000 will be used to reduce
indebtedness, and the balance will be used for working
capital and general corporate purposes. Office—Holly¬
wood, Calif. Underwriters—William R. Staats & Co., Los
Angeles, Calif., and Shearson, Hammill & Co., New York
City.

Majestic Utilities Corp. (8/25)
April 29 filed $300,000 of 6% convertible 10-year de¬
bentures, $250 face value, 30,000 shares of common stock,
and options to purchase an additional
30,000 shares.
It
is

preferred; for bank debt reduction; to

proposed to

units

offer these securities for public sale in
(1,200), each consisting of $250 face amount of de¬

bentures,
to

May 26 filed 200,000 shares of common stock (par 10
cents) and 100,000 common stock purchase warrants.
sale

for each 25 shares of

July

• Itemco,
Inc.
April 29 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceds—For repayment of outstanding
debt, for instrumentation and automation of laboratory
equipment, for expansion of existing manufacturing fa¬
cilities and the acquisition or establishment of additional
facilities, and the balance for working capital. Office—
18 Beechwood Avenue, Port Washington, N. Y. Under¬

working capital to be used in
granting loans to firms judged beneficial to the Israel

development, buy equipment, and
capital. Office—90 Forrest St., Jersey

working

production and sales engineers, fi¬

product

new

July

June 28,

staff of

For

common

Diode Corp.

1960 filed 42,000 shares of 6% non-cumulative
preferred stock (par $8). Price — $8 per
share. Business—Makes and sells diodes. Proceeds—To

establish

28, 1960 (letter of notification) $220,000 of 20-year
series A first mortgage coupon bonds to be offered
denominations of $1,000. Price—At par. Proceeds-^.

June

convertible

per

rate purposes

July 29,

offered for the company's account and

I C Inc.

City.

International

add

June 27,

the

—To be supplied by amendment. Proceeds—To pay
balance due on the purchase of Western Life shares,

nance

(8/22-26)

Hyster Co.

it Intercoast Companies Inc.
Aug. 16, 1960 filed 110,000 shares of common stock. Price

111., and Hayden, Stone & Co.

June

cipal amount of debentures for each 26 shares of capital

Leadville Water Co.

purchase

$350

shares
an

common

additional

stock,

common

and

options

shares.

Price—

unit. Proceeds—To be applied in part payment
of a $250,310 bank loan and the balance to be added to
working capital and used for general corporate pur¬
per

poses. Office — 1111 Stout Street, Denver, Colo.
writer—Purvis & Company, Denver, Colo.
•

June

Industries, Inc.
15, 1960, filed 254,322 shares of

offered to holders of the
of

Under¬

Maule

one

per

new

outstanding

common

stock, to

at the rate

share for each three shares

held. Price—$7
share. Proceeds—For plant and modernization ex¬

penses.

Office—Miami, Fla. Underwriter—None.

Note—

This statement is to be withdrawn.
•

McKesson & Bobbins, Inc.
(8/23-24)
July 28, 1960 filed $15,000,000 of debentures, due Sept.
1,
1980.
Proceeds — To retire short-term
borrowings, to
finance the proposed acquisition of an
interest in corpo¬

rations

operating in South America, and to increase
working capital. Office—155 East 44th
St., New York
J7'
J.* Underwriter — Goldman, Sachs & Co., New
York
City (managing).
Mercantile Discount Corp.,
Chicago, III.
29, 1960, filed 128,000 shares of common

June

stock.
Price—To be supplied by amendment. Proceeds—To
be
added to the capital fund to allow for the
expansion of
business and to increase
borrowing capacity/Part of the

Volume 192

Number 5978

The Commercial and Financial Chronicle

...

proceeds

(689)

may be used temporarily to reduce bank bor¬
rowings. Underwriters—Rodman & Renshaw and H. M.

and

Byllesby and Co. Inc., both of Chicago, 111.

Small

Business

Investment Act of

group

business

•

Metropolitan Development Corp. (9/6-9)
June 8 filed l,0uu,uuu snares of capital stock. Price—To
be supplied by amendment. Proceeds—To complete
pay¬
ments

the

company's property, for repayment of
loans, and the balance to be added to the general funds
for construction purposes and acquisitions. Office—Los

Angeles, Calif. Underwriters—William R. Staats & Co.,
of Los Angeles, Calif., and Bache & Co. and
Shearson,
Hammill & Co., both of New York City.
•

Miami

Tile

Ter-razzo, inc. (8/24)
125,000 shares of common stock (par $1).
Frice—$3.50 per share. Proceeds—Approximately $100,000 to reduce temporary bank
loans, $125,000 to reduce
accounts payable, $40,000 to establish a new office and
March 11, filed

warehouse

Jacksonville,

general corporate purposes.
Miami, Fla. Underwriter

Fla., and the balance for
Office—6454 N. E. 4th Ave.,
Floyd D. Cerf Jr. Co.. Inc..

Chicago, 111.
Miami Ventilated Awning Mfg. Co., Inc.
June

29,

class

1960

(letter of notification) 150,000 shares of
stock (par $1). Price—$2 per share.
Proceeds—To retire loans, purchase new
machinery, open
a new office and for working capital. Office—1850 N. E.
144th St., North Miami, Fla. Underwriter ■— Plymouth
common

Bond & Share

Corp., Miami, Fla.

Miles-Samuelson

Inc.

(8/22-26)

June 22,

1960 filed 100,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds—

$1).

For reduction of
and

indebtedness, expansion of the business

general corporate purposes. Business—The company
in writing, illustrating and producing a

engaged

variety

technical

material

specifically designed for
use by industry and the
Department of Defense. Office—
21 East 26th St., New York City.
Underwriter—Marron,
Sloss & Co.,, Inc. of New York City.
/

Milgo Electronic Corp.

(9/6-9)

July 28, 1960 filed 65,000 shares of common stock
$1), to be offered to the holders of the outstanding
mon

the

basis of

Price—To

held.

one

new

(par
com¬

share for each six shares

supplied by amendment. Business—
Making and selling electronic equipment and systems for
missile^ and space programs. Proceeds—For reduction of
short-term bank loans, $635,000; for
expansion, $200,000;
for product development,
$125,000. The balance will be
used as working capital. Office—7620 N. W. 36th
Ave.,
Miami, Fla. Underwriter
Shearson, Hammill & Co.,
—

New York City.

MissiEe-Tronics, Corp.

(9/6-9)
July 8, 1960, (letter of notification) 200,000 shares of
common
stock
(par 10 cents). Price—$1.50 per shaie.
Proceeds—For general corporate purposes.
Office—245
4th Street, Passaic, N. J. Underwriter—Edward H. Stern
& Co., Inc., 32 Broadway, New
York, N. Y.
Missouri Public Service Co. (9/20)
Aug. 1, 1960 filed 258,558 shares of common stock (par
$1) to be offered to the holders of the outstanding
common

the

basis

for

each

eight
shares held. Price—To be supplied by amendment. Pro¬
ceeds—To

reduce

short-term

1959-60 for construction

Mo.

Underwriters

Smith

new

one

—

bank

expenses.

Merrill

loans

Lynch, Pierce, Fenner

Inc.,|and Kidder, Peabody & Co., both of New

York

City (managing).

Model Finance Service, Inc.
May 26 filed 100.000 shares of second
ferred stock—65c convertible
000

incurred

Office—Kansas City,

pre¬

series, $5 par—and $1,000,-

6Y2% junior subordinated debentures, due 1975.
Price—To be supplied by amendment. Proceeds—To be
added to the company's general working funds. Office—
202 Dwight Building, Jackson, Mich. Underwriter—Paul
C. Kimball & Co., Chicago, 111.

July

2.8,

common

1960
stock

Corp.
(letter of notification) 2,500 shares of
(par 40 cents). Price — At-the-market.

Business—To manufacture and sell magnetic recorders.
Proceeds—For general corporate purposes. Office—944

Halsey St., Brooklyn, N. Y. Underwriter—None. Offering
-—Expected in the Fall.
Mohawk

Insurance

Co.

fice—198 Broadway, New York City. Underwriter—R. F.
Dowd & Co. Inc., 39 Broadway, New York 6, N. Y.

Mustang Lubricant, Inc.
May 9 filed 80.000 shares of class A common stock.
Price—$5 per share. Proceeds—For general corporate
purposes.
Office-Denver, Colo.
Underwriter—To be
supplied by amendment., \ ' 7 *
:

■"

„

•

r. ■:

„

April 27 filed 217,278 shares of common stock (par $1)
all of which is being offered for subscription. The com¬
pany is offering 108,000 shares of new common stock
for
subscription by holders of outstanding stock of
record Aug. 4, at the rate of one new share for each
three shares held with rights to expire on Aug. 19 at
3:30 p.m. EDT.
Arebec Corp., of New York, which owns
109,278 common shares, has entered into an agreement
to

sell said shares to the underwriter. Price—$7.75 per
share. Proceeds—To be added to company's general funds

and will enable it to use all or part of the proceeds in
the reduction of bank indebtedness. Office—2301 Wood¬

ward

Mich. Underwriter
Co., New York.

Ave., Detroit,

Thalmann

—

Ladenburg,

Narragansett Capital Corp.

(9/6-9)
June 21, 1960, filed 1,000,000 shares of common stock
(par $1).- Price—$11 per share. Proceeds—For invest¬
ment.
Office—10 Dorrance
Street, Providence, R. I.
Business—This

non-diyersified .closed-end

concerns.

1958 to

diversified

Underwriter—G. H.

stock

indebtedness, working capital, and general
purposes. Office — 350 Lincoln Road, Miami
Beach, Fla. Underwriters—J. A. Winston & Co., Inc., and
Netherlands Securities Co., Inc., both of New York City,
corporate

National Consolidated Development Corp.
July 25, 1960 filed 70,000 shares of class B common (non¬
voting) stock. Price—$100 per share. Business—To ac¬
quire business properties, and operate, lease, or sell
them for a profit. Proceeds—For general corporate pur¬
poses, with initial activities scheduled for Phoenix, Ariz.
Office—South 1403 Grand Ave., Spokane, Wash. Under¬
writer — The stock will be offered through authorized
and qualified brokers.
• National Electronic Tube
Corp. (8/23-24)
April 29, 1960 filed 150,000 shares of common stock (par
5 cents). Price — $2 per share. Proceeds — For general
corporate purposes. Office—88 Cortlandt St., New York
City. Underwriter — Vickers, Christy & Co., Inc. and

First City Securities, Inc., both of New York

Turnpike, Levittown, L. I., N. Y. Underwriter—General
Investing Corp., New York, N. Y.
11

stock

(letter of notification) 100,000 shares of com¬
(par one cent). Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwrite?
—Fund Planning Inc., New York, N. Y. Offering—In¬
definite.

management

share for each three shares held

new

New York Time. Price—$2
general corporate purposes.

p.m.

For

share. Proceeds—
Office — 9489 Dayton

per

Power &

(9/21)

Light Co.

July 27, 1960 filed $20,000,000 of 30-year first mortgage
bonds. Proceeds — To retire $20,000,000 of unsecured
promissory notes, to mature on or prior to July 31, 1961.
The notes will be used to partially finance the 1960-61
construction
determined

which is expected to total $61,Portland, Ore. Underwriter — To be

program,

Office

000,000.

—

bidding.

competitive

bidders:

Probable

Halsey, Stuart & Co. Inc.; Lehman Brothers; Blyth & Co.
and

White, Weld & Co. (jointly); Eastman Dillon, Union

Securities & Co. Bids—Expected to be received on Sept.
21

noon.

if Pacific Standard Life Insurance Co.
Aug. 9, 1960 (letter of notification) 120,000 shares of
class A common stock (par $1). Price—$2.50 per share.
Proceeds—To surplus, so that the company can become
an
unlimited capital stock insurance company. Office
—c/o Lewis Roca Scoville Beauchamp & Linton, 9th
floor, Title & Trust Bldg., Phoenix, Ariz. Underwriter—
None.
•

Inc. (8/29-9/2)
150,000 shares of common stock. Price—$4
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness and research
and development expenses.
Office — 70-31 84th Street,
Pacotronics,

Glendale, L. I., N. Y. Underwriter—Myron A. Lomas¬
ney & Co., New York City.
•

Pearson

(9/6-9)

Corp.

March 30 filed

National Lawnservice Corp.
mon

one

July 29, with rights to expire on Sept. 7, at 5:00

June 2 filed

City.

• National Fountain Fair
Corp.
May 27 (letter of notification) 75,000 shares of common
stock (par $1).
Price-—$4 per share. Proceeds — For
general corporate purposes.
Office — 3000 Hempstead

Jan.

the basis of

of record

Pacific

A common
share. Proceeds—For re¬

(par $1). Price—$5 per

duction

Way, Beverly Hills, Calif. Underwriter—None.

Natural Gas Pipeline Co. of America
July 1, 1960, filed $25,000,000 of first mortgage pipeline
bonds, due 1980. Price—To be supplied by amendment.
Proceeds—To be applied in part to the payment of out¬
standing bank loans and the balance used for construc¬
tion requirements.
Office — 122 South Michigan Ave.,
Chicago, 111.
Business—Public utility.
Underwriters—
Dillon, Read & Co. Inc.. and Halsey, Stuart & Co. Inc.,
both of New York. Offering—Postponed.
Natural Gas Pipeline Co. of America
July 1, 1960, filed 150,000 shares of cumulative preferred
stock (par $100).
Price—To be supplied by amendment.
Proceeds—To be applied in part to the payment of out¬
standing bank loans and the balance used for construc¬
tion requirements.
Office — 122 South Michigan Ave.,
Chicago. 111. Underwriter—Dillon, Read & Co. Inc., New
York. Offering—Postponed.

50,000 shares of common stock. Price—To
by amendment. Proceeds—$60,000 will bo
to repay the company's indebtedness to Busi¬

supplied

utilized
ness

Development Co. of Rhode Island; the balance will
working capital for general corporate pur¬

be added to

principally to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,
R. I. Underwriter—R. A. Holman & Co., Inc., New York.
poses,

Perkin-Elmer

(9/15)

Corp.

July 21, 1960 filed 100,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
The company is engaged in the design, manufacture, and
sale of scientific instruments. Proceeds—For plant con¬
struction

($1,400,000), machinery and equipment ($500,000), and general funds. Office — Main Ave., Norwalk,
Conn. Underwriter—Blyth & Co., Inc., New York City
(managing).
•

■

Oil Development Co., Inc.
March 30 filed 103,452,615 shares of capital stock, to be
offered for subscription by stockholders at the rate of
Philippine

one

share for each 5 ¥2

new

shares held. Price

—

To be

supplied by amendment. Proceeds—To be added to the
company's working capital. Office — Soriano Bldg.,

Manila, Philippines, Underwriter—None. Offering—Ex¬
pected sometime in September.
;

Navajo Freight Lines, Inc. (8/22-26)
May 9, 1960, filed (with tne ICC) 250,000 shares of com¬
mon
stock, of which 189,000 share#, being outstanding
stock, will be offered for the account of the present
holders

thereof, and 61,000 shares will be offered for
issuing company. Price—To be sup¬
plied by amendment. Office—1205 So. Plate River Drive,
Denver 23, Colo. Underwriters—Hayden, Stone & Co.
and Lowell, Murphy & Co. (jointly).
the

account of the

Needham Packing Co.

June

filed

1960,

200,000

Chicago. Offering—Postponed.
North Washington

discount of

primary
1160

Land Co.
$1,600,000 of first mortgage

filed

certificates.

Price—The certificates will

17.18% from face value.

participation
offered at

Proceeds—For the

of refinancing existing loans. Office—
Pike, Rbckville, Md. Underwriter—In¬

purpose

Rockville
Service

vestor

Nuclear

Securities, Inc.

Engineering Co., Inc.

April 18 (letter of notification) 30,000 shares of common
(par 33.3 cents). Price—$10 per share. Proceeds
—To replace bank financing, reduce accounts payable,
purchase machinery and equipment and for working
capital. Office—65 Ray St., Pleasanton, Calif. Under¬
writer—Pacific Investment Brokers, Inc., Seattle, Wash.
Nucleonic Corp.

(8/29-9/2)
July 28, 1960 (letter of notification) 75,000 shares of
common stock
(par 10 cents). Price—$4 per share. Busi¬
ness—Developing and manufacturing nuclear detection
instruments; equipment and accessories. Proceeds—For
advertising and increased direct mail; moving to a mod¬
ern one story
plant and leasehold improvements; addi¬
of America

tional sales personnel and

establishment of sales offices

Boston, Washington and Chicago and
for working capital. Office—196 DeGraw St., Brooklyn,
N. Y. Underwriters—Bertner Bros, and Earl Edden Co.,
in

Los

Angeles,

New York,
•

N. Y.

(10/4)
Aug. 4, 1960 filed $1,600,000 of convertible debentures,
due Sept. 1, 1970. Price—To be supplied by amendment.
Proceeds—Approximately $700,000 will be used for the
development of company-owned property, employing
the "Oreo Process" for recovering secondary oil, and
the balance for general corporate purposes. Office—405
Lexington Ave., New York City. Underwriter—Lehman
Brothers and Allen & Co. of New York City (manag¬
Oil Recovery

Corp.

ing).
Oil

30
to

filed
the

300,000

holders

Price—At par

stock.

common

—For working

($10

15,000

share). Proceeds

per

capital. Office—3939 Southport Dr., San

Antonio, Tex. Underwriter—None.

Inc.

Pik-Quok,

July 27, 1960 filed 550,000 shares of common stock (par
$1), Price—To be supplied by amendment. Business—
The

organization and operation of self-service markets
under the names of "Pik-Quik" and "Tom

Florida

Thum."

There

are

now

such

Proceeds-

markets.

other funds, the proceeds will be used
to purchase substantially all of the assets of Plymouth
Rock Provision Co., Inc. Office—Baker Bldg., Minneap¬
olis, Minn. Underwriter—A. C. Allyn & Co., Inc., New
York City.
Offering—Expected in mid-September.

Together with

if Pioneer Finance Co.
Aug. 15, 1960 filed 125,000 shares of cumulative pre¬
ferred stock ($20 par), with attached warrants for the
purchase of 62,500 shares of common stock. Price—To
supplied by amendment. Business—The financing of
new and used mobile homes, "shell housing,"
and small
loans. Proceeds—For general corporate purposes. Office
be

—1400

Bank

National

First

Building,

Detroit,

Mich.

Underwriters—White, Weld & Co. of New York City and

Watling, Lerchen & Co. of Detroit, Mich.
FLasiics &
June 14

Fibers, Inc.

(letter of notification) 150,000 shares of common

stock (par 20

cents). Price—$2 per share. Proceeds—For

general corporate purposes. Office—Whitehead Avenue,
South River, N. J.
Underwriter—Pearson, Murphy &
Co., Inc., New York, N. Y. Note—The underwriter states
offering will be delayed.

that this

Portland Turf Association

(9/6-9)

1960 (letter of notification) $300,000 of 10%
first mortgage registered bonds, due July 1, 1970. Price
—At face amount.
Proceeds—For purchase of a track,
July

29,

retire

bonds

and

for

working

capital.

Bellevue, West Vancouver, B. C., Canada.
General Investing Corp.,

Office—2890

Underwriter—

New York, N. Y.

Possis Machine Corp.

July

25,

common

1960
stock

(letter

of notification)

40,000

shares of

— $7.50
per share.
facilities, purchase additional

(par 25 cents). Price

Proceeds—To acquire new

equipment, reduce existing indebtednesss and for work¬
ing capital. Office — 1645 Hennepin Ave., Minneapolis,
Minn. Underwriter — Craig-Hallum,, Inc., Minneapolis,
Minn.

Progress Electronics Corp.
Aug. 3, 1960 (letter of notification) 200,000 shares of com¬
mon stock (par $1). Price—$1.50 per share. Proceeds—To

S^aieXorp.

March
offered

if Physicians' Credit Corp.
Aug. 4, 1960 (letter of notification)

shares of common stock.
Price—To be supplied by amendment. Proceeds—Toward
the payment of a $2,000,000' bank loan. Office — Sioux
City, Iowa. Underwriter — Cruttenden, Podesta & Co.,
28,

stock

Aug. 8, 1960, filed 75,000 shares of class A common stock.
Price—$12 per share. Proceeds—For general funds. Of¬

Namm-Loeser's Inc.

small

capital
by the

National Capital Corp. (8/29-9/2)
June 9, 1960, filed 240,000 shares 6f class

May

Machines

company intends to provide equity
make long-term loans as contemplated

Walker & Co., New York.

•

cumulative

Mo'tawk Business

investment

shares of
of

its

common

stock being

outstanding common stock

Cnn tinned.

nn.

naae

The Commercial and Financial Chronicle

(600)

City, Utah. Underwriter—Jacoby, Daigle & Werner, Inc.,
Los Angeles, Calif.

250,000 shares

Office—New Haven, Conn. Un¬
derwriter
Bache & Co., New York City (managing).
Offering—Expected in early October.
expenditures.
—

it Radio Shack Corp.
Aug. 16, 1960, filed 200,000 shares of common stock (par

shares will be offered for the
account of the issuer, and the remaining 50,000 shares by
present holders thereof.
Price — To be supplied by
amendment.
Business—Distributors of electronics prod¬
$1),

which

150,000

ucts, sound components, and small appliances. Office—
730 Commonwealth Avenue, Boston, Mass. Underwriter
—Granbery, Marache & Co., New York City.
•

Inc.
,
Aug. 1, 1960 (letter of notification) 60,000 shares of com¬
mon stock (par 10 cents).
Price—$5 per share. Business
—Manufacturers of electronics parts and components,
precision machine parts for military and commer¬
Proceeds—For general corporate purposes.

cial aircraft.

Magnolia Street, Westbury, L. I., N. Y. Underwriter—Richard Bruce & Co., New York, N. Y.
Office—86

•

Rayson Craft Boat Co.
July 11, 1960, (letter of notification) 100,000
common stock
(no par). Price—$3 per share.

shares of
Proceeds
—To purchase additional equipment, for sales, purchase
of inventory and working capital.
Address — Gardena,
Investors, Los Angeles,

Underwriter—California

Calif.

Calif. Offering—Imminent.

it Reiter Steel Fabricators, Inc.
Aug. 8, 1960 (letter of notification) 5,000 shares of class
A preferred
common stock.
Price — At par ($10 per

and
W.;jThompson Street, Philadelphia, Pa. Underwriter—None.
share). Proceeds—For plant and office expansion
consolidation, and plant equipment.
Office —1616

Republic Ambassador Associates
April 29 filed $10,000,000 of Limited Partnership In¬
terests, to be offered in units. Price—$10,000 per unit.
Proceeds—To purchase hotels in Chicago from a Webb
& Knapp subsidiary.
Office—111 West Monroe Street,
Chicago, 111.
Underwriter—Lee Higginson Corp., New
York. Offering—Expected in late August.

(8/30)

1960 filed $125,000,000 of sinking fund deben¬
due Sept. 1, 1985. Price — To be supplied by
amendment. Proceeds—For plant expenditures. Office—

Aug.

Cleveland, O. Underwriters — First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith, Inc., both of New
York City (managing).
L ■
,
/
Resifiex

Laboratory,

Inc.

(9/6-9)

the

issuing company,

and 60,000

shares, being out¬

stock, for the account of the present holders
thereof. Price—To be supplied by amendment. Business
—The manufacture and sale of disposable plastic tubular
standing

assembling and marketing of blood
donor sets. Proceeds
For plant expansion, increased
production facilities, and working capital. Office—864
South Robertson Blvd., Los Angeles, Calif. Underwriter
—Blunt Ellis & Simmcns, Chicago, 111.

products,

the

and

—

Reva

Enterprises, Inc.

Proceeds—For

general corporate purposes. Office—525
Worcester, Mass. Underwriters—Blair & Co.,

Inc., New York City and Chace, Whiteside & Winslow

Inc., Boston, Mass.
•

Roliton

Rimak

Electronics, Inc.
July 29, 1960 (letter of notification) 150,000 shares of
common stock (par $1). Price—$2
per share. Proceeds—
To liquidate a promissory note. Address — North Holly¬
wood, Calif. Underwriter — Holton, Henderson & Co.,
Los Angeles, Calif.
Riverview A5C, Inc.
common

1960

(letter of notification) 100,000 shares of
stock (par one cent). Price—$3 per share. Pro¬

liabilities, construction and for
working capital. Office—2823 S. Washington Ave., Titusville, Fla. Underwriter—Mallory Securities, Inc., New
York, N. Y. Offering—Expected in late September.
Rochester Telephone Co.

(9/21)
July 21, 1960 filed $12,000,000 of series "E" first mort¬
gage bonds, which will mature in 33 years, on Sept. 1,
1993.
to

Proceeds—The

proceeds of

this

sale

will

used

bank loans for construction and extension of
facilities in service by the date of the proposed sale. Un¬
repay

derwriter

—

determined

"Probable bidders: First Boston

by competitive bidding.

Corp., and Halsey

Office

—

330'

capital.
Office —1600 Ogden
Underwriter—Copley & Co., Colo¬

ing capital. Office—4528

Springs, Colo. Offering—Imminent.

Inc.
March 30 filed 277,000 shares of common stock, of which
117,000 shares are to be offered for public sale by the
issuing company, and the remaining 145,000 shares will;,
be sold for the account of certain selling stockholders.
Price—To be supplied by amendment.
Proceeds—For

Scftol, Inc. (8/22-26)
17, 1960 (letter of notification) 150,000 shares of
stock (par 10 cents). Price—$2 per share. Pro-/
ceeds
For general corporate purposes. Office — 992:
Springfield Ave., Irvington, N. J. Business—The company
manufactures cosmetics and toiletry items. Underwriter*
common

—

J
(letter of notification) 100,000 shares of
(par 25 cents). Price—$3 per share. Pro-;
ceeds—For machinery, cost of moving and leasehold im¬
provements and working capital. Office—185 W. School-,
house Lane, Philadelphia 44, Fa. Underwriter — Hess,,
Grant & Remington, Inc., Philadelphia, Pa.

June

amendment.

29,

1860

stock

common
m

July 22, 1960 filed 110,000 shares of common stock (par
$1), of which 75,000 shares will be sold fpr the account
of the issuing company and 35,000 shares, representing
outstanding stock, will be sold for the account of John

Southern California Edison Co.

Rollins, selling stockholder, who is a director. Price
—To be supplied by amendment. Proceeds—For general
corporate purposes. Office—Wilmington, Del. Under¬
writer—F. Eberstadt & Co., New York City. Offering—
W.

•

„♦

(9/6-9)

Corp.-

issued

exchange

for

subsidiaries.

four

able upon request at the office of Sullivan & Cromwell,'
48 Wall St., New York City, on or before Aug. 19.

Southwestern Gil Producers,

Inc.
shares of common stock. Price—
$2 per share. Proceeds—For the drilling of three wells
and the balance for working capital. Office—2720 West
Mockingbird Lane, Dallas. Underwriter — Elmer K.'
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.
: - «
"
/

March 23 filed 700,000

and preferred
supplied by

common

Price—To

•

Russell Stover

Inc.

Candies,

ment,

(par

and

$1), of which up to 75,000 shares may he reserved for
certain of the issuer's officers and employees, with the
balance to be offered publicly. Price—To be supplied by
amendment. Proceeds
For redemption of outstanding

;

ers,

Ripley & Co., Inc., New York City, and Stern Broth¬
Kansas City, Mo.
* '*
"
-

Sachar Properties, Inc.

(8/29-9/2)

July 6, 1960, filed $300,000 of 8% subordinated instalment
convertible debentures due 1970, 150,000 shares of com¬

Stuart

(9/7)

establish

add to

seven

additional

regional, sales offices,'
—
3605 East Tenth

working capital. Office

Court, Hialeah; Fla. Underwriters—J. I. Magaril Co., 37
Wall St., New York City and Sandkuhl & Company, Inc.,
of New York City and Newark, N. J.
f
•

preferred, with the balance for working capital. Office—
1206 Main St., Kansas City, Mo. Underwriters—Harriman

Inc.

Spvay-5ilt,

July 25 filed (in the Atlanta SEC office) 100,000 shares
of common stock (par 10c). Price—$2.50 per share. Pro¬
ceeds—To increase inventory of "fiberglaspray" equip¬

(9/15)/.

Aug. 3, 1960 filed 200.000 shares of common stock

•

well as for new tooling, research,
officer's loan, and general corporate
purposes.
Office—93 Worth Street, New York. Under¬
writer—Morris Cohon & Co., New York.

of accounts payable, as

repayment

First Boston

Angeles, Calif/Information—Avail¬

at 601 N. 5th St., Los

Proceeds—To be used largely for reduction

amendment.

& Co.;

Co. Inc.; Blyth

Stuart- &

Corp. and Dean/Witter & Co. (jointly). Bids—Expected
to be received on Aug. 23 at 8:30 a.m. (California Time),;

May 27 filed 75,000 shares of cbmmon stock (par $1) to
be offered for cash sale to the public, and 44,283 shares
to

20,

Halsey,

>■

Roto-American

(8/23)

I960,, filed $60,000,000 of first and refunding
mortgage bonds, series M, due 1985. Proceeds—/To retire
outstanding short-term borrowings and to finance the
company's construction program. Underwriter—To be
determined by competitive bidding. Probable bidders:
July

(8/22-26) <f
July 8, 1960 (letter of notification), 100,000 shares of
common stock (par 1<U).
Price—$3 per share. Proceeds—
For general corporate purposes.
Office—267 Green St.,
Brooklyn 2, N. Y. Underwriter—S. Schramm & Co., Inc.,
New York, N. Y.

Inc.

Sonex,

supplied by

ley Ave., Encino, Calif. Underwriter—To be

1457 Broadway, New York

—Harwyn Securities, Inc.,
36, N. Y.

picture films of the Roller Derby,
working capital. Office—4435 Wood-

Expected in early September.

Brazil St., Los Angeles, Calif.
Calif/

June

of motion

Rollins Broadcasting Inc.

[

•

relating to the production

corporate purposes

sales

and the balance for

Underwriter—Garat & Polonitza, Inc., Los Angeles,

Roller Derby TV,

and

Skelley Urethane Industries, Inc.

Aug. 1, I860 (letter, of notification) 130,000 shares of/
capital stock (par $1). Price—$2 per share. Proceeds—To
acquire and install equipment, inventory and for work-'

working

and

expenses

gondola-type aerial cahleway, south¬

Provo, Utah, in the Wasatch Mountains. Proceeds
purchase of property, construction and equip-"

writer—Whitney & Co., Salt Lake City, Utah.

stock (par 50

Street, Denver, Colo.
rado

Steck Co.

<6/29-9/2)

24, 1960, filed 60,000 shares of common stock, of
which 30,000 shares are to be offered for public sale by
the issuing company and 30,000 shares are now outstand¬
ing and are to be offered by the present holders thereof;
Price—To be supplied by amendment.
Proceeds—To

June

Office—205 West 9th

supply funds for working capital.

(par 10 cents) and 30,000 common stock pur¬
chase warrants.
It is proposed to offer these securities

St., Austin, Tex. Business—The company is engaged in
the printing and publishing business and in the sale of
office supplies and equipment. Underwriter—Rauscher;

Pierce &

mon

stock

units, each unit is to consist of $100 principal amount
debentures, 50 common shares, and 10 warrants ex¬
ercisable at $2 per share until 1965. Price—$200 per unit.
Proceeds—$200,000 to purchase the Second Ave. and Er
82nd
St.
properties; $51,000 to
purchase the New
Rochelle property; and the balance for working capital.
Business—The company intends principally to deal in
and
with unimproved
real property, to sell parcels
building sites, to subdivide and improve parcels and

building sites, and to obtain or prepare
and financing arrangements in respect
Madison Ave., New York.
Under¬
writers—Ross, Lyon & Co., Inc. and Globus, Inc., both
same

building
thereof.

plans

Office—598

of New York.
•

Safticraft

Corp.,

V;-

—■/''///'

'/•'-/•:

Patterson,

La.

(8/19)

April 29 filed 275,000 shares of common stock (par 10
cents).
Price—$3 per share.
Proceeds—The company
proposes

to use $50,000 to expand its efforts in the sale
boats nationally; $250,000 for reduction of

Safticraft

short-term

borrowings;

and

be advanced to du Pont,
ital

necessary

the

remaining

$293,500

Inc. as additional working cap¬

in the financing of increased inventories
sales volume of

and receivables incident to the increased

Dupont.

Underwriter

—

George,

O'Neill

Co.,

Inc.,

New York.
Saucon

ceeds—To reduce current

1960,

28,

common

sell

Industries, Inc. (8/23-25)
June 29, 1960 (letter of notification) 150,000 shares of
common
stock (par $1). Price—$2 per share. Proceeds
—For a new product development and working capital.
Office—11801 Florida Ave., Tampa, Fla.
Underwriters
—Vickers, Christy & Co., Inc. and First City Securities,
Inc., New York, N. Y.
/■;,/

29,

purposes.

ment, retirement of notes, and the balance for working
capital. Office—240 East Center St., Provo, Utah. Under¬

Corp.

(letter of notification) 175,000 shares of
cents). Price—$1 per share. Pro¬
ceeds—For training, advertising, salaries and fees, travel
June

and

area

east of

Lynch, Pierce, Fenner & Smith Inc. (managing).

(managing).

Rez-Tile

July

corporate

—For the

(9/19-23)

July 28, 1960 filed 200,000 shares of common stock (par
$1). Price — To be supplied by amendment. Business—
The establishment and operation of bowling centers.
Lincoln St.,

resort

supplied by amendment. Proceeds—For construction
expenditures and the reduction of indebtedness. Office—
1726 Champa St., Denver, Colo. Underwriter — Merrill

—

1960, filed 100,000 shares of common stock, of
which 40,000 shares are to be offered for the account
July 18,
of

general

it Seven Mountain Corp.
Aug. 12, 1860 filed 3,500,000 shares of common stock.
Price—$1 per share. Business—To construct an all-year

and
Price—To

tures,

•

of common shares.

number

unannounced

Rotating Components, Inc.

Republic Steel Corp.

(8/29-9/2)

(letter of notification) 100,000 shares of
(par one cent). Price—$1 per share. Pro¬

Wagaraw Rd., Hawthorne, N. J. Underwriters—Bertner /
Bros, and Earl Edden Co., New York, N, Y.

offered in units consisting of a $50 debenture

general

Rainier Co.,

and

stock

ceeds—For

(9/20-21)
fund debentures,
1980, and 235,000 shares of common stock (par $3)

to be

—

capital

1960

15,

common

Rocky Mountain Natural Gas Co., Inc.
due

of common stock, of
which 200,000 shares are to be offered for the account
of the issuing company and 50,000 shares, representing
outstanding stock, are to be offered for the account of
Joseph Stein, President, the present holder thereof.
Price—To be supplied by amendment. Business—Makes
and sells electronic air purifiers and range hoods. Pro¬
ceeds
To retire indebtedness, with the balance for
3,

July

July 15, 1960, filed $2,350,000 of sinking

Purltron

Aug.

Thursday, August 18, 1960

Sealed Air Corp.

Securities & Co., and

Kidder, Peabody & Co. (jointly). Bids—Expected to be
received on Sept. 21, I960, up to 11:00 a.m. New York
Time. Information Meeting—Scheduled for Sept. 19.

develop and produce proprietary items in the electron¬
ics field. Office—1240 First Security Building, Salt Lake

Corp.
1960 filed

Inc.; Eastman Dillqn, Union

& Co.

Continued from page 41

Development,Corp.

(letter of notification) an undetermined num¬
of shares of common stock (par $1) not to exceed

April 28
ber

Storm

Co., Inc., Dallas Texas.

//;/

Mountain Ski Corp.

1960, filed $500,000 of 8% subordinated deben¬
1975 and 100,000 shares of common stock, to
for public sale in units consisting of a $50
debenture and 10 shares of stock.
Price—$75 per unit:
Proceeds
To pursue the development of the resort;
Office
Steamboat Springs, Colo.
Business — Company
was organized for the purpose of developing and oper¬
ating a ski and summer resort on Storm Mountain on the
Continental
Divide, about 2 miles from
Steamboat
Springs. Underwriter—None.
./

June 30,
tures

due

offered

—

Strolee of California

Inc.

July 19, 1960, filed 150,000 shares of outstanding com¬
mon stock. Price—$5 per share. Business—The manufac¬
ture

of strollers,

high chairs and other similar types of

juvenile items. Proceeds—To selling stockholders. Office
—Los Angeles, Calif. Underwriters—Federman, Stonehill
& Co. of New York City; Mitchum, Jone* & Templeton
cf Los Angeles, Calif., and Schweickart & Co., of New
York City. Offering—Expected in late August to early
September.
•

Surtfcury Milk Products Co.

June

(8/22)

(letter of notification) 20,000 shares of
common stock
(par $5). Price—$15 per share. Proceeds
—To liquidate short-term bank loans and for- working
capital. Office—178 Lenker Ave., Sunbury, Pa. Under¬
writer—Hecker & Co., Philadelphia, Pa.
•
20,

1960

$300,000. Price—To be supplied by amendment. Proceeds
—For mining expenses. Office — c/o Wallace F.- McQuade, Pres., 246 Beaconsfield Blvd., Beaconsfield, Que¬

Aug. 8, 1960, filed 100,000 shares of common stock.
—To

bec, Canada. Underwriter—To be named.

pany

is chiefly

•

Sea-Highways,

Price—$2
share. Proceeds—For working capital. Office—Pan-

American Bank Bldg.. Miami,
Maher Associates, of

•"

Syntex Corp.
supplied by amendment.
engaged

in the

.Price

Business—The com¬

research, development,

hormone products. Pro¬
working capital.
Office — Arcia Building,
Justo Arosemena Avenue, Panama, Republic of Panama.

production, and sale of steroid

Inc.

May 9 filed 150,000 shares of common stock.
per

•

Fla. Underwriter—John R.

New York. Offering—Imminent.

ceeds-—For

Underwriter—Allen

Offering-

& Co., New York City.;

Expected in late September.

•

/.-

;

Volume

192

Number

5978

The Commercial and Financial Chronicle

System EVIe^t Co.
150,000 shares of common stock. Price—$5
per share.
Proceeds — For payment of employees' sal¬
aries, first mortgage installment, accrued officers' sal¬
aries, and the balance for working capital.
Office —
Newcastle, Wyo. Underwriter—Purvis & Co., Denver,

June 2 filed

Colo.
•

10,

common

Electronics,

(letter of notification) 112,500 shares of
stock (par 10c). Price—$2 per share. Business—

The firm makes health and massage equipment, electric

housewares, and medical electronic equipment. Proceeds
-rFor expansion, working capital, and research and de¬

velopment expenditures. Office—71 Crawford St., New¬
ark, N. J. Underwriter — United Planning Corp., 1180
Raymond Blvd., Newark, N. J.

—

For

debt

reduction,

re¬

development, engineering equipment and fix¬

tures, and working capital. Office—441 Washington Ave.,
North Haven, Conn. Underwriter—Pistell,
Crow, Inc.,
New

York

City.

Offering—Expected sometime in Sep¬

tember.
Tech-0~:m
June

Electronics, Inc.
29, 1960, (letter of notification)

common

stock

ceeds—For
33rd

(par 10 cents).

general

Street,

Long

Edward Lewis

Island

100,000

Price—$3

corporate

shares of

share. Pro¬
Office—36-11

per

purposes.

City,

Underwriter

—

pected sometime in September.
Telecolor

I960

common

capital

(letter of notification)
stock

(par 25

to be offered by

are

Proceeds—To

cents)

150,000 shares of
of which 100,000

officers. Price—$2

per

share.

lease

equipment and for working capital.
Ave., Hollywood, Calif. Under¬
writer—Raymond Moore & Co., Los Angeles, Calif.
Office

—

7922

1960
stock

(letter of notification) 95,000 shares of
(par 25 cents). Price—$3 per share. Pro¬

Transnation

Melrose

Telephone & Electronics Corp. (8/29-9/2)
14, 1960 (letter of notification) 52,980 snares of
common stock
(par 25 cents). Price—$5 per share. Pro¬
ceeds—For general corporate purposes. Office—7 East
42nd St., New York 17, N. Y. Underwriter—Equity Spourities & Co., New York, N. Y.
June

filed

debentures,

Realty Corp.

Lehman

subordinated Installment

common

ceeds

company president at $1
per share.
Price—
share. Business—The manufacture and sale of

equipment

create

precisely

temperature, humidity,

controlled conditions
and cleanliness in

pressure

search, production and quality control. Proceeds

—

of
re¬

The

erection of new manufacturing facilities, research and
equipment, and the balance for working capital. Office
—U. S; Highway 130,
Riverton, N. J. Underwriters—M.
L. Lee & Co., Inc., Milton D. Blauner &
Co., Inc. and F.

L. Salomon & Co., all of New York City. Offering—Late

September

early October.

Tempest International Corp. (8/29-9/2)
July 11, i960 filed 100,000 shares of common stock (par
10 cents.
Price
$3 per share. Froceeds — For con¬
—

struction of

factory, and the balance for general cor¬
— Pan American
Bank Building,
Underwriter
Equity Securities Co., 39
Broadway, New York City.
a

porate purposes. Office
Miami 32, Fla.

—

★ Tenax, Inc.
Aug. 16, 1960, filed $1,500,000 of 10-year 6% convertible
subordinated

debentures,

1970.
Price —100% of
principal amount. Business—The sale, stocking and fi¬
nancing of freezers. Proceeds—Repayment of short-term
indebtedness and working capital. Office—575 Lexing¬
ton Avenue, New York
City. Underwriter — Myron A.
Lomasney & Co., New York City.
Terminal Electronics

due

Inc.

(8/22-28)

June 24, 1960, filed

166,668 shares ot capital stock (par
25 cents), of which 83,334 shares are to be offered for
public sale for the account of the issuing company and
the balance for the account of William

Filler, President
Price—$6 per share. Proceeds—$190,000 is to be used to
pay the remaining balance of its obligation incurred in
connection with the purchase of Terminal stock from the
Estate of Frank Miller; $100,000 to repay a bai>k loan;
and the balance for
general corporate purposes, includ¬
ing the obtaining and equipping of an additional retail
outlet.

Business—Wholesale and retail distribution oi
retail electronics parts and components. Office—236-246
17th

Street,

New

Underwriters—J. A. Winston
& Co., Inc. and Netherlands Securities
Co., Inc., both
of New York; Note—Name is to be
changed to TerminalHudson Electronics, Inc., upon effectiveness of a merger
York.

with Hudson Radio & TV Corp., which will take place
if and when all of the
shares offered hereby are sold.

Timely Clothes, Inc.
July 25, 1960 filed $840,000 of convertible subordinated
debentures, due 1980, to be offered to the holders of
the
outstanding common on the basis of $100 principal
amount of debentures for each 16% shares of common
held. The record date and interest rate will be supplied
by amendment. Business
The firm makes and sells

clothes, and

operates,

through

two

amount of debentures for each 50 shares held. Price—To

supplied by amendment. Proceeds—For working cap¬
ital; all or part of the proceeds may be applied to the
reduction

$8,500,000

011

Venture

Jackson

June 29,

Lumber

Corn.

(9/13

140,0'QQ shares of

common

fice—375

stock (par

rities Corp.
Information
N.

(10/19)

Co,.

Aug. 12, 1960 filed $50,000,000 of 30-year first mortgage

Corp. V

•

Houston, Texas.
Underwriters — Carl M. Loeb,
Co., Merrill Lynch, Pierce, Fenner & Smith
Inc., and Smith, Barney & Co., Inc., all of New York
City. Offering—Expected in late August or early Sep¬
Rhoades &

tember.

Corp.

15, 1960 filed 100,000 shares of common stock
(par 10 cents). Price—$3 per share. Business—The man¬
ufacture of precision metal products for use in the air¬
craft, missile and electronics industries. Proceeds—For
additional

Co.

Shearson, Hammill & Co., New York City, and Wm. H.
Tegtmeyer & Co., Chicago, 111. (managing). Offering-

Underwriters—-L. C. Wegard

J.; Street & Co., Inc. of New
York City; Woodcock, Moyer, Fricke & French of Phila¬
delphia, Pa.; First Broad Street Corp., Russell & Saxe
and V. S. Wickett & Co., Inc. all of New York City.
Offering—Imminent.
•

United

March

States
filed

Expected in mid-September.
Waterman

of common stock

Emerald

one

stock

Wenwcod

debenture

common

($100 principal amount)

stock.

Price—$200 per unit.

and 100 shares

Proceeds—For

Organizations Inc.

17, I960 filed $550,000 of 7y2% subordinated sinking
July, 1970 (with common stock pur¬
chase warrants). Price—100% of principal amount. Pro¬
ceeds—$100,000 will be used for payment of a bank loan
incurred to help finance the disposal plant and an esti¬
mated additional $50,000 to complete the plant; $109,000
to retire 10% debentures issued in payment of certain
fund debentures due

Bowling Corp.
(letter of notification)- 112,500 shares of
(par 25 cents) and $112,500 of 10-year
debentures to be offered in units of

Pa. Underwriter—Stroud &

June

United States

convertible

St., Philadelphia,

Co., Philadelphia and New York.

—

common

(8/29-9/2)

cial

offering has been postponed.

22, 1960,

Inc.

prietary items for the purpose of expanding its commer¬
business. Business—Electronics field. Office—2445

to be

publicly offered. Price—$2 per share. Proceeds—$221,826 will be applied to the repayment of loans to United
States Pool Corp. which were used for general corporate
.purposes, and the balance will be utilized for working
capital, including a later repayment of $45,000 to U. S.
Pool Corp.: Office — 27 Haynes Avenue, Newark, N. J
Underwriter
Richard Bruce & Co., Inc., New York.
Note—This

Products Co.,

1960, filed 100,000 shares of common stock (par
$1). Price—$5 per share. Proceeds—To be used primari¬
ly to accelerate the development of the company's pro¬
June 24,

Boat, Corp.

350,000

Inc.

forms, catalogs, and technical manuals. Proceeds — To
selling stockholders. Office—Chicago, 111. Underwriters—

plant, machinery and equipment, the re¬

Levittown,

Press,

Aug. 3, 1960 filed 184,435 shares of common stock (par
$10). Price—To be supplied by amendment. Business—
Commercial printing and the production of business

payment of loans, and the balance, for working capital.

Office—Burlington, N. J.

(8/22-26)

1960

Wallace

June

Inc.

(letter of notification) 100,000 shares of
common stock
(no par). Price—$3 per share. Proceeds
—To
reduce
existing liabilities, purchase machinery,
equipment and additional inventory, and for working
capital. Office—40 North Ave., 9 Broadway, Wakefield,
Mass. Underwriter — Robert A. Martin Associates, Inc.,
New York, N. Y.
\v

Ave.,

Products

Wakefield Engineering,

July 26,

—

Aero

cents), of which 25,650 shares are to be offered for
account of the issuing company and 77,862 shares,
representing outstanding stock, are to be offered for the
account of the present holders thereof.
Price — To be
supplied by amendment. Business — The manufacture
and sale of dielectric capacitors.
Proceeds — $25,000 to
redeem outstanding preferred stock; $112,500 to prepay
the balance on mortgage
notes; and the balance for
working capital. Office—Bridgeport, Conn. Underwriter
—G. H. Walker & Co., New York City.
the

July 8, 1960, filed 150,248 shares of outstanding class A
stock (par $1), and 75,124 shares of outstanding class B
stock (par $1). Price — To be supplied by amendment.
Proceeds
To selling stockholders.
Office — 811 Rusk

United

Bids — Expected to be received on Sept. 13.
Meeting—Scheduled for Sept. 8 at 11 a.m.

time, at The Chase Manhattan Bank, 43 Exchange

Vitramon, Inc. (9/6-9)
4J",uly 27, 1960 filed 103,512 shares of common stock (par

Blvd., St. Louis, Mo. Underwriters—To be determined
by competitive bidding. Probable .bidders: Halsey, Stuart
& Co., Inc.; First Boston Corp. and White, Weld & Co.
(jointly); Lehman Brothers, Blyth & Co. (handling the
books), Eastman Dillon, Union Securities & Co. and
Bear, Stearns & Co. (jointly). Bids—Expected to be re¬
ceived on Oct. 19 up to 11 a.m. (EDT). Information Meet¬
ing—Oct. 17 at 3:00 p.m. at the Bankers Trust Co.

Place, New York City, Room 238.

bonds, due 1990. Proceeds — To meet construction ex¬
penses and retire short-term loans. Office—315 No. 12th

Union Texas Natural Gas

Bregman, Cummings & Co., all of New York.

-A-Virginia Electric & Power Co. (9/13)
Aug. 12, 1960, filed $25,000,000 of first and refunding
mortgage bonds, series P, due 1990. Proceeds—For con¬
struction. Office—700 E. Franklin Street, Richmond, Va.
Underwriters—To be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; White, Weld & Co.; Eastman
Dillon, Union Securities & Co.; Stone & Webster Secu¬

tion Plaza, Great Neck, L. I., N. Y. Underwriter—Bear,
Stearns & Co., New York City (managing).

Electric

management investment company.
Of¬
Park Ave., New York.
Underwriters—Filor,

Bullard & Smyth, Hardy & Co., Sprayregen, Haft & Co.
and

to retire short-term indebtedness. Office—45 North Sta¬

^ Union

Business—A closed-end

non-diversified

—

6%%

Small Business Investment Act.

West

Lee

—

Triangle

September.

short-term

bank
borrowings,
which
June 30. Office—7400 E. 12th
St., Kansas City, Mo. Underwriter—Kidder, Peabody &
Co. (managing).
amounted

fering—Expected in mid-September.

Ave. North,
in

(9/12-16)

Capital Corp. of America (9/6-15)
1960, filed 275,000 shares of common stock (par
$1). Price — $7.50 per share. Proceeds — To be used to
fulfill the $300,000 minimum capital requirements of the

writers

June

pected

Co.

Blvd., Chicago, 111.
Under¬
Higginson Corp., New York City, and
Straus, Blosser & McDowell, Chicago, (managing). Of¬

Office—571

stores. Proceeds—To reduce indebtedness, with
the balance for
working capital. Office — 1415 Clinton

Rochester, N. Y. Underwriter—Cartwright
Parmelee, New York City (managing). Offering—Ex¬

29, 1960 filed $5,250,000 of convertible subordi¬
nated debentures, due 1980, to be offered to holders of
the outstanding common on the basis of $100 principal

principal amount of de¬
bentures. Business—The company makes radios, TV sets,
tape recorders, and various types of high fidelity and
stereophonic combinations. Proceeds — $922,500 will be
used
to
redeem
the
outstanding
$900,000 principal
amount of
12-year 6% sinking fund debentures due
1967, with the balance for general corporate purposes.

subsidiaries.

10 retail

—

Aug. 5, 1960 filed $2,200,000 of 61/2% sinking fund de¬
bentures, due 1975, with 15-year common stock purchase
warrants, 2 such warrants to be issued with each $1,000

—

men's

100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬

stock

pay accounts payable, reduce a bank loan,
advertising and for working capital. Office—Red Lion,
Pa. Underwriter
Simmons, Rubin & Co., Inc., New
York, N. Y.

$1), of which 118,000 shares; are to be publicly offered
by the company/and the remaining 22,000 shares are
to be offered to the company's officers and employees.
Prices—For the 118,000 shares, $8 per share; for the 22,000 shares,, $7.20 per share. Businesss — The buying,
warehousing, milling, and distribution of lumber, ply¬
wood, and millwork for use in residential and industrial
construction. Proceeds
For general funds to provide
additional working capital, and may be used in part

per

12 at 2 Rector St., New York City.

Co., Inc. (9/15)
July 27, 1960 (letter of notification)

Vendo

July 28, 1960 filed

Perlman,

Bros.; Bear, Stearns & Co. Bids—Expected to
on Sept.
14. Information Meeting—Sched¬

July

Aug. 10, 1960 filed 150,000 shares of common stock (par
25 cents), of which 135,000 shares are to be offered for

$3.50

Prob¬

Valdale

-^Temperature Engineering Corp.

the account of the company, and the remaining 15,000
shares being already sold to underwriters by Sidney H.

(9/14)

received

uled for Sept.

This company was formerly called the Goelet Corp.

Price—100%

Power & Light Co.

Webster Securities Corp. (jointly); Salomon Bros. &
Hutzler; Kidder, Peabody & Co.; Eastman Dillon, Union
& Co. and Smith, Barney & Co.
(jointly);

Avenue, New York.
Underwriters—Ross, Lyon &
Co., Inc., and Globus, Inc., both of New York. Note—

debentures.

Photo Supply Co.,

Securities

son

Co.,

1970, 70,000 shares of com¬
mon stock
(10 cents par) and 35,000 common stock pur¬
chase warrants (exercisable at $4.3,0 per share until May
j5, 1965), to be offered in units consisting of $100 oi
debentures, 10 common shares, and five warrants. Price
—$143 per unit.
Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬

Radio Corp.

able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co. and
First Boston Corp. (jointly); White, Weld & Co.; Stone

due in March,

Trav-Oer

Rice

writer—To be determined by competitive bidding.

(8/22-26)

$700,000 of 8%

Irving J.

23, 1960,

Utah

loans; for research and de¬
velopment and for working capital. Office—1650-21st St.,
St., Santa Monica, Calif. Underwriter—V. K. Osborne &
Sons, Inc., Beverly Hills, Calif.
March

—

July 29, 1960 filed $16 million of first mortgage bonds,
due 1990, and $10 million (400,000 shares) of $25 par
cumulative preferred stock, series A. Proceeds—For con¬
struction purposes and repayment of bank loans. Under¬

Transis-Tronics, Inc.
18,

Underwriter

Inc.
(letter of notification) 120,000 shares of
common stock
(par 50 cents). Price—$2.50 per share.
Proceeds—To pay debts and increase line of credit. Of¬
fice—6478 Sligo Mill Road, Washington 12, D. C. Under¬
writer—Balogh & Co., Washington, D. C.

capital. Office—10 E. Elizabeth St.,
Brownsville, Tex. Underwriter—None.

Co., Inc., New York, N. Y. Offering—Ex¬

July 25,

June

St., Los Angeles, Calif. Underwriter—Leh¬

ceeds—For working

July

Paul, Minn.
Paul, Minn.

St.

i Trans World Utilities, Ltd.
Aug. 2, 1960 (letter of notification) 150,000 shares of
common stock (par 20 cents). Price—$1
per share. Pro¬

common

July 29, 1860 filed 120,000 shares of common stock (par
20 cents). Price — $5 per share. Business — Makes, and
sells electronic
equipment, principally multi-channel

digital computers. Proceeds

St.

ceeds—To retire short term

Technical! Measurement Corp.

search and

working capital to lease and operate additional bowling
Office—East 701 First National Bank Building,

centers.

Brothers, New York City.

man

inc.

1960

(8/23)

1960, filed 400,000 shares of common stock.
be supplied by amendment. Proceeds—From
the sale of an unspecified number of the
shares, for sell¬
ing stockholders; from the sale of the remainder, for the
operation of the Trans-Coast Insurance Agency. Office
22,

Price—To

—210 W. 7th

Tecftni

Aug.

Trans-Coast Investment Co.
June

(691)

obligations of the company for services rendered; $25,000for a sales program in connection with the Florida
Continued

page

The Commercial and Financial Chronicle

(692)

Brothers, Stone & Webster Securities Corp. and

Continued from page 43

homes; and the balance for working capital to finance
the continued development of the residential community
in Sarasota and the construction of homes in West Palm

Beach, and the development of a shopping center in
Selden, L. I. Office—526 North Washington Blvd., Sara¬
sota, Fla. Underwriter—Michael G. Kletz & Co., Inc.,
New York. Offering—Expected in late August or early
September.

Western Factors,

Inc.

1960, filed 700,000 shares of common stock. Price
—$1.50 per share. Proceeds—To be used principally for
the purchase of additional accounts receivable and also1
may be used to liquidate current and long-term liabil¬
ities.
Office —1201 Continental Bank Bldg., Salt Lake
June 29,

City, Utah.
Business—Factoring.
Underwriter—Elmer
K. Aagaard, Newhouse Bldg., Salt Lake City, Utah.
Land

Western

Corp.

July 5, 1960, filed 1,500,000 shares of common
Price—$2 per share. Business—Company proposes

in the real estate business, including the

gage

stock.
to en¬

purchase

and the purchase or construc¬
of industrial and other properties,
including shopping centers and apartment and office
buildings. Proceeds — Primarily for real estate invest¬
ment. Office—2205 First National Bank Bldg., Minne¬
arid sale of real property

tion and development

Minn.
Underwriter
Minneapolis, Minn.
apolis,

First Western Corp., of

—

shares of common stock and $500,000
subordinated debentures, due 1977, with warrants
for the purchase of 10,000 additional common shares at

share.
Price — For the debentures, 100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment.
Office—Myerstown, Pa. Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa.
Wilier Coior Television

(8/29-9/2)

System, Inc.

Jan. 29

(letter of notification) 80,890 shares of common
stock
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Equity Securities Co., 39

Bobbie

Broadway, New York City.
WonderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain
property, for constructing a motel on said property and
various leasehold improvements on

the property. Office
«—7805 Sunset Boulevard, Los Angeles, Calif.
Under¬
writer—Standard Securities Corp., same address.
"

sign, manufacture and sale of silver-zinc primary and
rechargeable batteries. Office—New York City.
writer—Kidder, Peabody & Co., New York.

Under¬

Mining Co.
May 6 filed 1,000,000 shares of common stock. Price— $1
per share. Proceeds—It is expected that some $100,000
will be used to purchase and install a mill for the proc¬
essing of ore; $60,000 for rails, ties, rail cars and related
equipment: $10,000 for rebuilding roads; $30,000 for
transportation equipment; and $655,000 for working cap¬
writer—None. Note—The SEC has

challenged the accu¬
adequacy of this statement. A hearing sched¬
uled for July 27 was postponed to Aug. 29 at the request
of the company counsel.
and

ATTENTION UNDERWRITERS!
Do you have an issue you're planning to

final FPC approval.

can

write

you

telephone

at 25

Park

an issue of convertible de¬
discussed. Office—Birmingham, Ala.
Possible Underwriter—Sterne, Agee & Leach, Birming¬
ham, Ala.

(10/6)

new

Eastman
Bros.

will spend

new

•

company's

electric

and

item

2-9570

9:30

Manhattan

gas

American Telephone & Telegraph Co.
(10/2S)
July 20, 1960, the directors authorized a new debenture
bond issue of

$250,000,000. Proceeds — For improvement
expansion of Bell Telephone services. Office—195
Broadway, New York City. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Morgan
Stanley & Co., apd The First Boston Corp. and Halsey,
and

(jointly). Bids — Expected to be
on
Oct. 25. Information Meeting—Scheduled
Oct. 20 at 2:30 p.m., 195
Broadway, New York City.

re¬

for

was ann°unced that this subsidiary of
Utilities, Inc. might issue $15,000,000 of

mortgage bonds in December. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
determined

rities

Co.

and

Equitable

Securities

Blyth & Co. and Dean Witter &

5:00

—

Scheduled for Sept. 22 between

by appointment, at the Chase
Exchange Place, New York City,

p.m.

Bank, 43

238.

was

Corp. (jointly):
Co., (jointly); Lehman

Capital Ltd.

that

400,000

new

Iowa

Florida

Power

gage

was

(10/20)

bonds will be sold by this utility. Proceeds—For new

construction and repayment of bank loans.

Underwriter

President

Sutherland Dows stated that

bondl

Iowa-Illinois Gas & Electric Co.
June 23,

approximately $50,-

reported that $25,000,000 of first mort¬

Electric Light & Power Co.

000,000 required to finance I960 construction. Office—
Cedar Rapids, Iowa.

1960, it was announced that the company's sale
$15,000,000 of first mortgage bonds in April of this
year will carry it through the better part of 1960.
The
company plans some bank borrowing before the end of
the year and expects to be in market again sometime in
1961, probably also for senior debt securities.
of

This company on May 31 floated
share offering through Merrill Lynch,

Corp.

Balti¬

sold in order to supplement money to be ob¬
tained from temporary bank loans, to acquire the $10,-

the company

Pierce, Fenner & Smith Inc. and associates at a price of
$59,125 per share.

March 10 it

would be

money.

common

Co.

par,

March

further

estimates that in 1961 it will require

Canton

Aug. 16, 1960 it was reported that the company is plan¬
ning imminent registration of some common stock. Office
—Chicago, 111. Underwriter—Bear, Stearns & Co.

Light Co.

announced

with

derwriter—N one.

was

Power
was

merger

^ Interstate Vending Co.

anticipates
financing in the fall of 1960 approximating $25,000,000 of an as yet undetermined type of security, and
1

its

which will be the name of the surviving corpora¬
It is expected that the notes will be issued shortly

and will mature at the rates of $1,000,000 an¬
one to three years, $500,000 annually for :our
to nine years, and $4,830,000 the
10th year after the
merger. Office—535 Fifth Avenue, New York City. Un¬

Underwriter—Bear, Stearns & Co., New York City.
Florida

with

1, 1960 in the 1959 Annual Re¬

nually for

reported that this company, which
expects to incorporate in Bermuda, is planning its ini¬
tial financing to occur later in the year. Proceeds — To
acquire major equity positions in large and mediumsize electronics companies outside the United States.

June

announced June

connection
more,

was

International

Electronics

'Ji1-".6,20^1960' i1:
Middle
first

(9/27)

International Mining Corp.

reported that the company plans a
regulation "A" filing sometime in mid-August. Proceeds
—For general corporate purposes.
Office—Miami, Fla.
Underwriter
Plymouth Securities Corp., New York
City.

000,000 of

Arkansas Power & Light Co.
South

reported that the company plans to
$15,000,000 of 1st mortgage bonds due 1990

port of International Mining Corp. that the corporation
intends to issue $10,830,000 of 7% secured serial notes in

July 26, I960 it

available.

ceived

Salomon

—

Department Stores, Inc.
July 6 it was reported that this Bronx (N. Y.)-based
retail chain is contemplating an issue of common stock.

Inc.

and

was

and

a.m.

Room

Inc.; White, Weld & Co., and Shields & Co. (jointly);
Morgan Stanley & Co.; The First Boston Corp., and
Harriman, Ripley & Co., Inc.

Prospective Offerings

Co.

Information Meeting

Co.

Place, New York 7?

Alexander's

Stuart &

Co.

Building, Houston.

65-county area outside of Greater
Detroit. Underwriter—To be determined by competitive

July 13, 1960 it

was

Electric

Indianapolis Power & Light Co.

tion.

confirmation

—

was reported that the company will issue and
$12,000,000 of 30-year first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Broth¬
ers; Goldman, Sachs & Co., and The First Boston Corp.
(jointly);
Eastman Dillon, Union
Securities & Co.;
White, Weld & Co., and Shields & Co. (jointly); Blyth
& Co., Inc.; Equitable Securities Corp. Bids—Expected
to be received up to 11 a.m. New York Time on Sept. 27.

Custom Craft Industries

Office

sell

$73,101,600. The company proposes to
mortgage bonds in the amount of
$35,000,000 maturing not earlier than 1990 for the best
price obtainable but not less favorable to the company
than a 5 2A% basis. The mortgage bonds are expected in
the last quarter of the year, perhaps in October.
Pro¬
ceeds—To be used to finance the continuing expansion
the

Union Securities

April 18 it

first

presently

ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly); Equitable Se¬
curities Corp.
\
'

asked the Michigan Public Service
permission to issue and sell securities

improvement

are

sometime in the fall. Proceeds—For capital expenditures,
etc. Underwriter—To be determined by competitive bid¬

company

sell

and

Dillon,
Hutzler.

issue and sell

with base value of

issue

securities

Idaho Power Co.

another.

for

additional

Texas.

Consumers Power Co.
Commission

issuance

Last August's offering of $25,000,000 of 4%%
first mortgage bonds was headed by Lehman Brothers,

construction compared with
$222,000,000 in 1959 and $189,000,000 in 1958.
For the
five years through 1964, Mr. Forbes estimated that the
utility would spend $1.2 billion for plant expansion. To
finance the five-year program he said the company will
have to issue some $800 million of securities of one kind

April 29 the

annual

$35 million in

under way.

indicated by H. C. Forbes, Chairman, at
the annual meeting of stockholders, that common stock¬
holders may get rights to subscribe to convertible deben¬
tures or common stock in the Fall. This type of financ¬
ing would be contingent upon the ability of the company
to get its presently outstanding 4% debentures converted

the

was

year

company's

the

will be required in 1960 to support the
construction program, and to repay outstanding
Studies to determine the nature and timing

March

this

announced

bank loans.

13, 1960, it was reported that this utility plans the
200,000 shares of common stock to raise
approximately $8-$9,000,000,/with the timing set for
the last quarter of this year, sometime after the Novem¬
ber electionss'Proceeds—For expansion purposes. Office
—215 N. Front St., Columbus 15, Ohio.

Edison

was

money

year's

of about

Con

Lighting & Power Co.

report that it anticipates approximately

June

being

Houston
March

Columbus & Southern Ohio Electric Co.

stock.

bentures

bidding. Probable bidders: For bonds—Halsey, Stuart &

prepare an

REctor

Hayes Aircraft Corp.
12 it was reported that

Shields & Co.; R. W. Pressprich & Co. and
Rhoades & Co., all of New York City.
Bids—Expected to be received on Oct. 6.

$225,000,000

to occur

Feb.

Smith Inc.;

common

Electric Co.

of $20 par preferred stock (5,000,000), perhaps
«ometime this fall. Office—Honolulu, Hawaii.

Carl M. Loeb,

about

determined

further financing through the issuance of 250,000 shares

13, 1960, it was reported that the company plans
to sell $30,000,000 of debentures. Proceeds — For con¬
struction. Office—120 E. 41st St., New York City. Un¬
derwriter—To be determined by competitive bidding.
Probable
bidders:
Merrill Lynch, Pierce, Fenner &

service facilities in

similar to those you'll find hereunder.
Would

June

May 15 it

25, 1960 it was reported that in addition to the
rights offering currently awaiting SEC clearance (see
''Securities in Registration"), this utility contemplates

Office—Colorado Springs, Colo.

Columbia Gas System, Inc.

—

July

July 28, 1960 the company reported that debt financing
of $70,000,000 is contemplated.
Precise timing depends

and

Corporation News Department would like
we

'"v

■"

Interstate Gas Co.

Colorado

ital. Office—6815 Tordera St.. Coral Gables, Fla. Under¬

that

/'.v.'';"''

Underwriter

Information Meeting—Scheduled for Oct. 31.

Nov. 3.

Business Investment

Aug. 5, 1960 it was reported that the company is now
contemplating a public offering of its securities. Office
—Atlanta, Ga.

into

Yuscaran

has not as yet been

Hawaiian

■' _-.v"

first mortgage bonds

30-year

$12,000,000 of
SEC.

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on

determined.

sale

(11/3)

announced that the company plans regis¬

was

the

with

Brooklyn Union Gas Co.
May 10 it was announced that the company plans no
more financing this year, but there would be some in

tration

Co.

1961, although the form it is to take

Georgia Power Co.

July 26, 1960 it was reported that some new financing
is expected later in the year. No further details are
available. Address—P. O. Box 1540, Bridgeport 1, Conn.

Mich,

Aug. 17,1960, it was reported that a common stock, filing
is in the offing. Underwriter—Shearson, Hammill & Co.
Dec.

Gas

reported that this company is develop¬

Foto Chrome Co.

quarters.

Bridgeport

was

this year. Office—Detroit,

Consolidated Edison Co.

July 11, 1960 filed 254,000 shares of outstanding common
stock (par 50 cents). Price—To be supplied by amend¬
ment. Proceeds—To selling stockholders. Business—The
company is principally engaged in the development, de¬

to know about it

March 28 it

ing plans for borrowing operations, which may include
the issuance of debt securities, and possibly occur later

Inc.

Brooks,

Bids—Expected to be received on Oct. 20.

Trust Co.

Ford Motor Credit Co.

1960 the company stated in its annual report
that about $200,000 is expected to be raised by long term
financing, to be applied to the $385,000 cost of acquiring
real estate adjacent to its Cleveland 14, Ohio, head¬

(9/12-16)

Yardney Electric Corp.

ly); First Boston Corp.; Eastman Dillon, Union Securi¬
ties & Co. and Harriman Ripley & Co. (jointly); Lehman
Brothers and Blyth & Co. (jointly). Information Meeting
—Scheduled for Oct. 17 at 11:00 a.m. at Morgan Guaranty

Co.

July 25,

Our

Storage

July 6 it was reported that this company is contemplat¬
ing a common stock issue.
Office—1335 So. Figuroa
Street, Los Angeles 15, Calif.

per

racy

Van

Bekins

(8/22-26)

Whitmoyer Laboratories, Inc.

Inc.

letter of notification
is planned for later this year.
Proceeds—For further
development of the "Skyjector." Office—342 Madison
Ave., New York City.
,
'

Co.

of 6%

•

Industry,

For

Citizens & Southern Small

Jan. 28 filed 85,000

Automation

competitive bidding. Probable bid¬

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬
ders:

Smith Inc.

Aug. 3, 1960 it was reported that a

Thursday, August 18, 1960

—To be determined by

White,

(jointly); Merrill Lynch, Pierce, Fenner &

Co.

Weld

Laclede

May 10 it
000

Gas

new

Co.

announced that in addition to the $15,000,capital provided by the July bond-equity

was

Volume

192

Number

5978

The

Commercial and Financial Chronicle

(693)

financing, $33,000,000 will
rities other than

ings.

common

from later sale of secu¬
stock and from retained earn¬
come

..O/-^

v;.v

•

Long Island Lighting Co.
13, 1960, it was reported that the
company is dis¬
cussing the sale of approximately $20-$30,000,000 of debt
June

financing, probably to
ber

occur

sometime

early October. Proceeds

For

—

the repayment of bank loans.

late

Septem¬

construction

and

Office
250 Old Country
Rd., Mineola, N. Y. Underwriter—To be determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; W. C. Langley &
Co.; Smith, Barney & Co. and
First Boston Corp., all of New York
City. .v.:-—

Louisville Gas & Electric Co.

April 27 it

(10/18)

reported that this company plans the
$16,000,000 of first mortgage bonds.
Proceeds—For construction.
Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Leh¬
man
Brothers and Blyth & Co., Inc.
was

(jointly); Kuhn,
Corp. and Wood,
Struthers & Co. (jointly); Eastman
Dillon, Union Se¬
curities & Co. and
White, Weld & Co. (jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co.
(jointly). Bids
—Expected to be received on Oct. 18.
&

Co.,

American

Securities

Merrimack Essex Electric Co.

July 19, 1960, it was reported that this subsidiary of the
New England Electric System
plans to sell $10,000,000 of
preferred stock sometime in the late fall.
Office—Salem,
Mass. Underwriter — To be determined

by competitive
bidding. Probable bidders: Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Merrill Lynch,
Pierce,

Fenner

Co.

Smith

and Eastman
Dillon, Union Securities
(jointly); First Boston Corp.

Midland

April 8

Enterprises
stated

was

Inc.
the

company's annual report

that it

contemplates the issuance

1961 of

bond issue in

$4,000,000.

Proceeds

equipment
ordered.

an
—

presently

before March 31,

aggregate amount not to exceed
To finance river
transportation
order

and

expected

Office—Cincinnati, Ohio.
road

bidding.
Exchange Bldg., St. Louis 1, Mo.

has

asked

of collateral

Office—Rail¬

Hutzler. Bids—Expected
Nafi

Aug.

to be

the road is

planning

received

Sept. 19.

Corp.

10,

1960, it was reported that the company will
issue $7,500,000 convertible debentures
shortly to pay off

notes issued in partial
payment for Chris-Craft Boat Co.
Office—527 23rd Avenue,

Oakland, Calif. Underwriter
Co., New York City (managing)*—

—Shields &

Nedick's Stores, Inc.
Nov.

was

reported

that

the

company

plating the placing in registration of 17,000

contem¬

stock.
About 66% of the issue will be
for the company's account and the
remaining 34%
ance will be sold for the account of
a
common

sold

bal¬

selling stockholder.
Underwriter—Van Alstyne, Noel & Co., New York.
New York Telephone Co.

June

22,

stock

the

amount

the- New

$120,000,000," subject to the

York

Public

Service

ap¬

Commission.

Proceeds—To retire short-term bank
borrowings used to
finance construction. Underwriter—To be
determined

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan
Stanley & Co.. Bids—Expected to be
received
stock

graph Co.

about

will be
on

Northern Pacific Ry. (8/24P.■>?
'July 11, 1960, it was reported that the Road plans to offer
$6,270,000 of railroad equipment trust certificates. Prob¬
.

bidders:

Halsey,

Bros. & Hutzler.

Stuart & Co. Inc. and Salomon
Bids—Expected to be received on Aug.

24 up to noon EDT.

Northern States Power Co.

(Minn.) (12/6)
reported that the company plans the is¬
and sale of $35,000,000 of 30-year first
mortgage
Underwriter—To be determined by competitive

May 11 it
suance

bonds.

was

bidding. Probable

bidders: Halsey, Stuart & Co., Inc.;
Pierce, Fenner & Smith Inc., Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
First Boston Corp. and
Blyth & Co., Inc. (jointly); Leh¬
man Brothers and Riter
& Co. (jointly); Equitable Se¬
curities Corp. and Eastman
Dillion, Union Securities &
Co. (jointly).
Bids—Expected to be received by Dec. 6.

Merrill

Lynch,

Orange & Rockland Utilities, Inc.
April 18 it

was

stated that

the

pos¬

Office—

and

plant

$20,000.-

Philadelphia Aquarium Co.
June

15, 1960, it

C<?, Inc. of Phila¬

delphia, Pa. and New York.

if Pittsburgh & Lake Erie RR. (9/15)
Aug. 17, 1960 it was reported that the road is
planning
the sale of $5,000,000 of
equipment trust certificates.
Underwriter—To be determined by
competitive bidding.
Bidders—Halsey, Stuart & Co. Inc., and Salomon Bros.
& Hutzler.
Bids—Expected to be received on Sept. 15.

Polymer Corp.
Aug. 2, 1960 it was reported that the company plans to
file $3,500,000 of convertible debentures
shortly. Office
—Reading, Pa. Underwriters
White, Weld & Co. of
New York City and A. G. Edwards & Sons of
St. Louis,
Mo. (jointly).
—

Potomac Electric Power Co.
March 21 it was stated in the
company's annual report it
is anticipated that their 1960 construction
program will
amount to $39 million and there will be further

financing

about $15 million of an as
yet undetermined type.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart &
Co., Inc.; First Bos¬
ton Corp.;
Dillon, Read & Co. and Johnston, Lemon
Co.

(jointly); Kidder, Peabody & Co. and Merrill
Pierce, Fenner & Smith (jointly); Lehman
Brothers and Eastman Dillon & Union Securities & Co.
and Stone & Webster Securities
Corp, (jointly).
•

Public

Service

Co.

Colorado

Public Service Co. of New
was

stated

Hampshire

the

taken later in the year.

The timing, type, and amount
financing has not been determined.

Public

Service

Electric

remaining balance, from the proceeds of additional
short-term borrowings.

Southern Natural Gas Co.
was stated in the
company's annual report that
company expects to provide for the
payment of
certain
outstanding notes through the issuance of first
mortgage bonds and other debt securities.
The timing
of the issue or issues was
not stated in the
report. Office

April 4 it
the

—Birmingham, Ala.
Southern

Gas

Co.

Power Co.
(10/4)
reported that the company is
planning
imminent registration of
$5,000,000 of bonds and $2,000,000 of $20 par preferred stock
(100,000 shares). Under¬
writer
White, Weld & Co. of New York
City
(managing),
'
v.Z. ••v./'/v

—

indebtedness incurred for construction. Underwriter—To
be determined by competitive
bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Co., and Lehman Brothers (joihtly). Bids—Ex¬
pected to be received on Sept. 20 up to 11 a.m., in New¬

Loeb &

if Southern Pacific Co. (9/21)
Aug. 17, 1960 it was reported that the road is
planning
the sale of
$7,500,000 of equipment trust certificates.
Underwriter—To be determined by
competitive bidding.
Bidders—Halsey, Stuart & Co. Inc., and Salomon Bros.
& Hutzler.
Bids—Expected to be received on Sept. 21.
Tennessee Valley Authority
Jan.

Information Meeting—Scheduled for Sept. 15
the Chase Manhattan Bank, 43 Exchange

Public Service Electrici & Gas Co.

July

26, 1960 it was reported that in addition to the
$50,000,000 to be obtained from the Sept. 20 bond offer¬
ing, $95,000,000 more will be needed to complete the
1960 construction program. Further financing is
expect¬

solidate

Co.,

some

with the type and timing

yet

Inc.

reported that this company plans to con¬
$2,500,000 of funded debt, possibly through

private placement, pursuant to which a bond issue
may be expected.
Underwriter—Lehman Brothers, New
York City.

•

Rochester Gas &

Electric Corp.
reported that $15,000,000 of debt
financing is expected in the spring of 1961, perhaps in
March. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co., White, Weld & Co. and Shields
& Co. (jointly); Kuhn, Loeb & Co.; Salomon Bros. &
Hutzler, Eastman Dillon, Union Securities & Co., and
Equitable Securities Corp. (jointly); Blyth & Co., Inc.;
The First Boston Corp.

Aug.

1960 it

public

Diego Gas & Electric Co. (10/4)
April 8 it was reported that $25,000,000 of bonds is expect¬
ed to be sold. Underwriter—To be determined by compet¬
itive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fen¬
ner & Smith
(jointly); Lehman Brothers and Salomon
Bros. & Hutzler (jointly). Bids—Expected to be received
->.• /

'V'/Z"'

Scantlin

Electronics, Inc. Z
June 13, 1960, it was reported that the filing of about
$2,000,000 of common stock is being discussed, and may
sometime

The company is currently mar¬
electronic table-top stock quotation
board. Office—Los Angeles, Calif. Underwriters—Carl
M. Loeb, Rhoades & Co. and Paine, Webber, Jackson &
occur

ket-testing

Curtis

made

was

this

*v.

reported that

summer.

expected to be about
$50,000,000, for
Fall.
May 13 it was announced that
$50,000,000 of additional revenue bonds will be

about

the

offered in the

Spring of 1961. The type of bond issued

will depend on market
conditions. Proceeds—To finance
construction of new
generating capacity. Power Financ¬
ing Officer: G. O. Wessenauer. Financial
Advisor: Leh¬
man Brothers.
Underwriter—To be determined by com¬

petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc., First National City Bank of New
York, Equitable
Securities Corp. and
Smith, Barney & Co. (jointly); First
Boston Corp., Lazard Freres &
Co., Eastman Dillon,
Union Securities & Co. and
Salomon Bros. &

Hutzler
(jointly); Chase Manhattan Bank and Morgan
Guaranty
Trust Co. of N. Y.
(jointly); and Blyth & Co. and J. C.
Bradford & Co. (jointly).

Trans World

April 8 it
its

was

Airlines, Inc.

announced that the
company plans to offer

stockholders $100,000,000

of subordinated

income

debentures with detachable

common stock
purchase war¬
rants, and Hughes Tool Co. (parent) will
purchase not
only its pro-rata portion ($78,000,000) but also
enough of
any debentures not taken
up by others to provide TWA

with

least

$100,000,000. Proceeds
Together with
proposed
private
placement
which
is
presently being worked on by this company's
bankers,
will be used for
expansion of the company's jet fleet.
—

Underwriters—Dillon,
&

Read & Co., Inc., Lazard Freres
Co., and Lehman Brothers, all of New York.

Feb.

was

reported

that

first, mortgage bonds will be
writers

—

Probable

approximately $25,000,000
offered for sale. Under¬

determined

competitive

bidding.

bidders:

Halsey, Stuart & Co. Inc.; Salomon
& Hutzler;
White, Weld & Co.; Eastman Dillon,
Union Securities &
Co.; Stone & Webster Securities
Corp. Bids—Expected to be received on
Sept. 13. In¬
Bros.

formation Meeting—Scheduled for
Sept. 8 at 11:00
time, at The Chase Manhattan Bank, 43

N. Y.

■:

Waldbaum, Inc.

tion

was

obtainable. Office—2300 Linden
Blvd., Brook¬

lyn, New York.

West Ohio Gas Co.
June

24, 1960, it

announced

that the
company an¬
carry out its 1960 construction
program it will consummate long-term
financing during
the year to provide additional funds in
the approximate
sum of
$400,000.
was

ticipates, that in order to

Whippany Paper Board Co.
July 19, 1960, it was reported that this New Jersey com¬
pany plans to register an issue of common stock in
Sep¬
tember. Underwriter—Van
Alstyne, Noel & Co., New
York City.
Winter

Park

May 10 it

Telephone Co.

was announced

first

that this company,

during the

quarter of 1961, will issue and sell
approximately
30,000 additional shares of its common stock. This stock
will be offered

and

may

securities
of

may

a rights basis to
existing stockholders
not be underwritten by one or more

brokers.

Future

$2,000,000 of bonds in

Office—132

East

plans
the

New England

also

include

the

second

quarter

;

secondary offering might

Underwriters

—

Merrill

;

Lynch,

sale
1961.

Ave., Winter Park, Fla.

Wisconsin Electric Power Co.

Aug. 2, 1960 it
sell
in

was

reported that the company plans to

$30,000,000 of first mortgage bonds sometime later

the

Office—Milwaukee, Wis. Underwriter—To

year.

be determined by competitive

bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
&
Smith
and
Equitable
Securities
Corp.
(jointly);
Glore, Forgan & Co., Eastman Dillon, Union Securities
&

Co.

First

and

Harriman

Boston

Brothers

Corp.,

Hutzler

Ripley & Co., Inc.
Lehman Brothers

(jointly); The
and

Salomon

(jointly); Blyth & Co.

Zurn

Industries, Inc.
July 19, 1960, it was reported that 250,000 shares is ex¬
pected to be filed shortly for the accounts of the com¬
pany and selling stockholders. Business—The manufac¬
ture of mechanical power transmission equipment, fluid
ucts.

a.m.

Exchange

Place, New York City, Room 238.

^control devices,

Schlitz & Co.

March 11 it
be

soon.

new

(jointly).

(Jos.)

offering,

sometime

was

■;

that, pursuant to August, 1959, au¬
Congress to have $750,000,000 of rev¬
bonds outstanding at
any one time, it plans its first

enue

San

Oct. 4.

announced

May 11 it was reported that public
financing is being
contemplated by this supermarket chain. No confirma¬

Place, New York City, Room 238.

was

thorization from

at 2:30 p.m. at

in the year,
undetermined.

was

Virginia Electric & Power Co. (9/13)

(9/20)

May 18 directors of this company took preliminary step«
for the sale of $50,000,000 in first and
refunding mort¬
gage bonds, dated Sept. 1, 1960, to mature Sept. 1, 1990.
Proceeds
To pay all or part of company's short-term

ed later

Nevada

Aug 2, 1960 it

$190,000,000

company's annual report
that short-term borrowings will increase
progressively
during 1960 until further permanent financing is under¬
of this

& Smith Inc. and Harriman
Ripley & Co.

Inc., both of New York City.

fice—Denver, Colo. Underwriters—First Boston Corp.,
Blyth & Co., ^nd Smith,; Barney & Co. (jointly).
April 4 it

Pierce, Fenner

—

reported that the company plans
$2,000,000 of debentures and common stock
to finance an aquarium in Fairmont
Park, Philadelphia,
which would be city-owned and
company-operated
der a lease. Underwriter—Stroud &
was

to sell about

company

from the proceeds of sale in
1961, subject to market con¬
ditions, of $10,000,000 of its first mortgage bonds, from
depreciation and retained earnings and, to the extent of

00Q of preferred stock later this year.

presently ex¬
pects that such part of its construction program through
1962 and the
refunding of $6,442,000 series B bonds ma¬
turing in 1961 as is not financed by the sale of the com¬
pany's 39,165 shares of its convertible cumulative pre¬
ferred stock, series E, 5% (par $100) will be financed

any

distinct

1961."

$30,000,000 of first mortgage bonds

Ritter

—

American

Northern Natural Gas Co.
It was reported on
Aug. 2, 1960 that the utility is con¬
templating issuing $30,000,000 of debentures in the Fall.
Office—Omaha, Neb.

able

to sell

July 6 it

Wednesday, Sept. 28. Note
the

systems,

The

postponed

Pacific Lighting Corp. •
*
May 11 it was announced that this company, in order to
finance additional pipeline distribution

Telephone & Tele¬
about Oct. 1, under preemptive
rights.

sold

ark, N. J.

(9/28)

1960,

the board of directors of this company
authorized the issuance of an additional series of mort¬
gage bonds in the amount of
$60,000,000 and common
proval

indefinite, and there is

that it might
Fergus Falls, Minn.

Aug. 16, 1960 it was reported that $15,000 of $100 par
preferred stock is expected
toja^s^ld in September. Of¬

the sale of $3,975,000 of
equipment trust certificates.
Underwriter—To be determined by
competitive bidding.
Bidders—Halsey, Stuart & Co. Inc., and Salomon Bros.
&

yet

Lynch,

the ICC for permission to sell
$15,000,000
trust bonds without
competitive

^Missouri Pacific RR. (9/19)
Aug. 17, 1960 it was reported that

are

sibility

Missouri-Kansas-Texas Railroad
Aug. 2, 1960 it was reported that the

way

Otter Tail Power Co.

1960

;

issuance and sale of

Loeb

July 27, 1960, Albert V. Hartl, executive Vice-President
of this
utility told this newspaper that an issue of
$6,000,000 of first mortgage bonds is
contemplated, al¬
though "plans for implementation of this project
during

York

and building plumbing drainage prod¬
Office
Underwriter—Lee Higginson Corp. of New

Proceeds—For general corporate purposes.

-Erie, Pa.

City.

The Commercial and Financial Chronicle

(694)

The following

Business Activity
IRON

Indicated

Week

INSTITUTE:

STEEL

AND

operations (per cent capacity)

Steel

Aug. zu

Equivalent to—
Steel

Crude

„n

output—daily

condensate

and

Distillate

fuel

oil

fuel

oil

(bbls.)
fuel

Residual

ASSOCIATION

(bbls.)

Revenue freight loaded
Revenue

CIVIL

6,831,210

6,821.310

6,732,825

118,271,000

8,290,000

8,280,000

7,836,000

29,040,000

29,014,000

30,677,000

28,167,000

2,424,000

2,685,000

1,436,000

*13,034,000

13,051,000

12,415,000

5,805,000

5,598,000

6,046,000

6,153,000

193,647,000

193,195,000

201,302,000

183,481,000

30,702,000

28,755,000

29,004,000

134,049,000

29,797,000
128,941,000

116,730,000

142,994,000

43,014,000

43,386,000

42,679,000

56,375,000

CONSTRUCTION

—

594,329

456,330

485,514

399,367

483,165

$435,500,000

$561,700,000

$601,100,000

$412,400,000
230,200,000

Private

Aug. 11

State

and

COAL

OUTPUT

(U. S.

BUREAU

Bituminous coal and lignite

Pennsylvania anthracite
DEPARTMENT

STORE

FAILURES

AGE

Finished

Pig

iron

Scrap

(per

PRICES

Electrolytic

228,400,000

150,500.000

67,900,000

31,700,000

INDEX—FEDERAL

6
6

Lead

AND

INDUSTRIAL)

DUN

—

(East St.

108

122

131

14,622,000

14,709,000

14,208,000

13,648,000

308

269

258

269

6.196c

6.196C

6.196c

Aug.

$66.41

$31.83

$31.17

$39.83

Aug. 10

29.600c

30,850c

27,900c

12.000c

11.800C

11.800c

Aug. 10

13.500c

DAILY

13.500c

all

13.500c

AMERICAN

11.500c

COAL

North

COAL
of

Crude

COTTON

J 87.86

87.99

86.38

85.07

80.81

79.25

81.05

84.55

84.43

83.28

84.81

88.81

87.72

85.85

85.33

88.95

88.67

87.05

88.40

COTTON

SERVE

EDISON

(tons)

at end

DRUG

period

REPORTER

4.26

4.31

4.41

4.46

4.57

4.56

4.68

4.78

4.72

5.12

5.25

5.10

4.82

4.83

4.92

4.80

ACCOUNT

4.58

4.72

4.76

4.49"

4.63

4.51

364.3

367.4

373.9

182,700

366,851

174,810

336,991

477.251

457,753

449,939

340,650

320,464

313,360

323,825

578.875

109.72

109.37

109.87

109.42

3,030,790

2,042,000

2,465,690

Odd-lot sales by dealers
Number of shares
Dollar value

(in

fine

(in

short

VEHICLE

82,400

12,400

234,620

23,200
245,300

252,320
519,220

463,820

346,560

268,500

546,220

358,960

526,820

896,918

721,752

85,300

84,250

130,730

123,970

22
22

495,750

560,270

961,143

743,172

581,050

1,091,873

644,520

877,142

2,763,760

2,802,680

4,542,378

3,522,972

415,890

464,340

825,930

508,380

2,380,960

2,527,900

3,775,953

3,113,692

2,796,850

2,992,240

4,601,883

3,622,072

PLANTS

FACTURERS'

1,949,788

1,736,861

:_july 22

$72,910,673

$71,476,704

$95,863,360

PORTLAND
Month

BANK

total

(BUREAU

shares—Total

sales

8,432

9,296

7,100

1,307.942

1,392,033

1,981,407

1,505,785

$63,256,848

$67,935,752

$91,059,280

$75,231,473

4,869

July 22

SALES

THE

410,350

600,200

381,920

3~5~5~920

410~350

600~200

3~81~920

July 22

by dealers—Number of shares

355,920

July 22
—July 22

sales

STOCK

527,310

509,320

570,920

614,640

STOCK

MEMBERS

sales

SERIES —U.

DEPT.

LABOR—(1947-49=100):

914,900

576,510

12,955,740

18,262,700

14,995,350

13,509,710

19,177,600

15,521,840

517.110

553.970

12,520,170

13,037,280

—

Aug.

than

farm and

119.4

i....

foods

119.7

•119.4

Aug.

87.1

*87.2

I&ug.

—

107.8

*107.9

;

■

119.2

89.3

87.2

108.4

Wool

^Includes

Monthly Investment

Aug.

96.6

*96.4

98.3

95.0

128.3

•128.3

128.3

___

228

245

281

494

509

248

252

253

237

231

—

310

330

148

153

125

248

—

eggs

218

163

305

.......

253

241

10,296,840
9,559,484
22,270,957

9,457,700

9,097,101

22,984,745

16,149,374

June:

Passenger and Motorcycle Tires (Number of):
•Shipments
Production

Tractor

Implement Tires

Passenger,
Tubes

1,218,128

Motorcycle, Truck
(Number

ana

1,320,877

1,271,797

3,982,095

2,953,973

Inner-

3,546,889

3,912,050

3,611,268

3,683,192

10,851,835

6,999,506

42,038,000

40,412,000

43,428,000

42,647,000
24,205,000

40,182,000

45,434,000

24,177,000

27,163,000

$288,472,460
6,988,292

$288,470,602
8,004,740

$288,792,005

$281,484,168

_______

3,329,829

3,444,359

10,699,550

$280,465,862

3.260%

$282,955,237

3.297%

2.909%

(Camelback)—

(pounds)
(pounds)

Inventory

...

STATES

GROSS

...

.....

DEBT DIRECT AND

GUARANTEED—(000's

Net

1,351,916

1,332,300
Bus

—.....

(pounds)

funds

omitted):

—

balance

debt

Computed

1,207,233

353,746

of)—

______

Rubber

July

679,204

4,087,637

...

Production

344,794

914,632

of)—

—-—

Production

General

290,254

938,288

(Number

Tires

321,763

307,013
j,

Bus

Shipments

UNITED

8,965,994

288,550

Inventory
and

9,980,707

(Number of)—

Production

128.4

973,000 barrels of foreign crude runs,
§Based on new annual capacity of 148,570,970 tons
against Jan. 1, 1959 basis of 147,633,670 tons.
tNumbor of orders not reportedosince introduction of
Plan.
JPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

pound.

and

...

INC.—Month

figure.

animals

223

234

....

products

199

216

494

—,

106.1

Aug,

other

____

Shipments
—-

277

209

203

Tobacco

Tread

Farm
products
Processed foods

commodities

Potatoes

crops

205

158

216

Oil-bearing

Inventory

Commodity Group—
commodities.

Fruit

229

248

239

Production

July 22
July 22
July 22

—

NEW

grains

242

283

158

——~

241
228

15:
—

fresh_

Inventory

—

Food

hay

and

236.

199

grains

100

223

June

Shipments

(SHARES):

sales

Cotton

33,605,000

221

;

vegetables,

36,082,000

40,085,000

AGRICUL¬

100—As

—

33,455,000

30,185,000

INDEX

—

______

Crops

Truck

Total round-lot sales—

WHOLESALE PRICES,

products

31,832,000

251

DEPT.

TURE— 1910-1914

Feed,

£57,498,000

FARMERS

NUMBER —U.

Commercial

£55,645,000

34,045,000

(barrels)_____

cent)

(per

RECEIVED

farm

£55,913,000

37,667,000

.....

Shipments

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT

PRICES

used

July...

MINES)—

Inventory

Short sales

ROUND-LOT

1,510,654

1,316,374

July 22

Round-lot sales by dealers—

Round-lot purchases

1,988,507

1,401,339

July 22
-July 22

sales

______

Capacity

(barrels)___

month

BRITAIN

June:

(barrels)
end

360

RUBBER MANUFACTURING ASSOCIATION

sales

sales.

other

GREAT

LTD—Month

CEMENT

ISSUES

111,282

365

coaches......

CAPITAL

555,685

114,075

31,930,000

motor

667,059

613,769

81,109

728,204

434,727

cars—

$92,082,884

.__July 22

short

516,201

trucks.....

Number

38,351

MANU¬

...

motor

20,093

*40,855

July:

vehicles

passenger

94,277

*23,113

FROM

S.—AUTOMOBILE

ASSN.—Month of

157,574

3,090,617

*97,534

20,738

SALES

*117,552

*2,951,147

97,387

Poultry
1,523,363

56,643,611

the

...

Meat

1,485,488

57,721,386

2,898,699

Number

Dairy

July 22

$841,988,000

40,106

Livestock

COMMISSION

30—

FACTORY

Shipments fiom mills

17,700

June

50,409,616

$908,847,000

129,031

tons).

Production

by dealers (customers' sales)—

orders—Customers'

54,176,283

$891,937,000
57,849,482

—

tons)

shcrt

(in

Total number

All

52,830,206

tons)

372,010

335,530

121

OF MINES)—

ounces;

short

(in

2,385,970

614,670

147

consumers—

omitted)

ounces)

2,013,960

July
July
July
July

;

Customers'

fine

612,800

233,860

*145

*137

States:

2,350.990

254,420

150

123

customers

2,963,790

356,890

100—

customers—Month

(BUREAU

1,722,330

July 22
July 22

EXCHANGE

14,508,237

RE¬

ultimate

(000's

2,079,220

312,890

(customers' purchases)t—t

Customers'

one-half cent

sales

1,650,590

July 22

EXCHANGE —SECURITIES

150,472

14,471,000

variation

ultimate

1,963,480

Ijuly

1, i960

103,432

INSTITUTE—

ultimate

MIDLAND

1,990,120

of members—

account

of July

adjustment.

May.

(in

Copper

NEW

July 22

sales

Jan.

108,127

87,667

COM¬

Number

STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT .DEALERS
AND
SPECIALISTS ON N. Y. STOCK

106,207

COMMERCE):

of May:
production of recoverable metals in

Zinc

the floor—

Other sales

"■Revised

United

Stocks

Short sales

83,788
(tons

Month
Mine

Lead

July 22
July 22
on

(DEPT.

seasonal

OUTPUT

4.53

July 22

Total round-lot transactions for
Total purchases

All

134,020

July:

July 22

Total sales

89,985

161,073

SALES—FEDERAL

July 22

sales

METAL

382.9

MEM¬

sales

Meats

►lOO.m

129,771

pounds)
pounds)

SYSTEM—1947-49 Average

Silver

4.50

Aug. 17

Short sales

All

1,206,000

139,779

STORE

from

Gold

July 22

Other

24,230,000

*1,437,000

of July:

2,000

(running bales)

4.70

4.42

INDEX—

FOR

month

(DEPT.

seasonal

Number

4.13

4.76

Aug.

—

PRICE

—

Other transactions initiated
Total purchases

Total

33,760,000

102,451

___

for

Month

3.80

Aug.

{

Short

25,100,000
1,140,000

tons)

of 2,000 pounds)
stocks at end of period

Revenue

4.64

July 22

purchases

(net

(tons

Kilowatt-hour

3.61

Aug.

—

Other sales

FOR

91,714

lignite

2,000

FLECTRIC

4.GO

Aug.
^

Short sales

TOTAL

3,705

MINES)—Month

pounds)—

MERCE):

MOTOR

purchases

10,690

1,788

PRODUCTION

3.65

transactions initiated off the floor—

Other

95,178

85.85

Aug. 16

___

August

Without

89.37

ASSOCIATION:

sales

Number

105,905

fabricators—

GINNING

Month

Aug. 16

activity^-.

value

59,625
55,920

16,301

tons)

(net

and

(tons

Aug. 16

sales

Dollar

102,162

169,383

135,695

tons)

;

anthracite

Adjusted

INDEX

TRANSACTIONS

Number of

tons)

(BUREAU

coal

2,000

90.06

;

sales

Odd-lot

54,075

(net

tons)..

Refined copper

Aug. 16

purchases

Total

(net

(tons

86.11

91.48

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

Other

anthracite

76,723
187,686

Copper production ir. U.S.A.—

Aug. 16

AVERAGE=100

Total

75,544

73,754
54,381

207,059

America

COPPER INSTITUTE—For

89.92

86.91

(tons)_,

Total

(tons

July:

85.33

89.13

87.45

AVERAGES:

(tons)_

Percentage

Other

grades

(tons)

Central

(net

Bituminous

Aug. 16

Production

Other

export

MINES)—

OUTPUT

87.38

88.86

Bonds

PAPERBOARD

Short

33,303,000

and

pounds)

(BUREAU

America

Asia

83.56

Aug. 16
DAILY

COMMODITY

Total

263,115,000

14,611,000

all

2,000

period

and

To South

101.625c

Group

Total

283,178,000

16,307,000

domestic

Europe

102.500c

Aug. 16

Utilities

ROUND-LOT

16,885,000

of Pennsylvania

104.500c

Aug. 16

Group:
Industrials Group

1949

24,614,000

June:

103.750c

Aug. 16

YIEIJD

AND

29.G89.000

20,711,000

11.000c

Aug. 16

orders

32,000

33,877,000

(barrels)—

EXPORTS

5 07

PAINT

48,000

30,571,000

(barrels).

output

(tons
end

Month

4.65

Unfilled

26,606,000

60,000
d

INSTITUTE, INC.—Month of

smelter

4.43

OIL,

250,444,000

223,806,000

28,118,000

153,800

Stocks

24.700c

Group

Orders received

239,298,000
211,132,000

27,739,000

pounds)

Shipments

13.000c

Aug. 16

NATIONAL

ZINC

zinc

2,000

26.000c

corporate

MOODY'S

240,095,000

212,296,000

275,070,000

imports

stocks

DEPARTMENT

Bonds

Government

Public

163,857
112,710

(barrels)

consumption
(barrels)

13.000c

Aaa

Railroad

imports

Indicated

26.000c

AVERAGES:

Group

Average

(barrels of 42 gal¬
'

output (barrels)—

output
(barrels)

product

13.000c

Industrials Group

Refined

26.000c

81 42

oil

output

Aug. 10

—

8878

BOND

168,596

*139,111

INSTITUTE—Month

gasoline

oil

Aug. 10

—-

89.78

MOODY'S

Crude

Aug. 10

PRICES

32.600c

30,875c

Aug. 10

32.600c

30.450c

Aug. 10

32.600C

Aug. 10

Louis)

Utilities

Natural

Deliveries

92.20

Public

crude

Refined

QUOTATIONS):

corporate

Railroad

Domestic

Pennsylvania

Aug.

Government

Average

PETROLEUM

175,863
148,571

___

May:

$66.41

ton")
M.

(primary pig. 99.5% ) at

BOND

of May
(short tons) end of May

Total domestic production
lons each)

Aug.

Straits tin (New York) at

389,000

(St. Louis) at

(delivered)

Ago

6,773,000

41,000

copper—

(New York)

MOODY'S

1,320,000

359,000

Aug. 13

ton)

Lead

Aluminum

in the U.

PRICES:

gross

(E.

Export refinery at

Zinc

*8,230,000

128

Aug.

Domestic refinery at

JZinc

7,840,000
343,000

RESERVE

lb.)

(per

(per gross

steel

METAL

312,500,000
41,700,000

INC

COMPOSITE
steel

131,7^0,COO
30,600,000

Aug. 11

(COMMERCIAL

BRADSTREET,
IRON

182,200,000

Aug.

.————

(in 000 kwh.)—

output

Year

Month

INSTITUTE:

ELECTRIC

Electric

296,300,000

Aug.

(tons )

AMERICAN

MINES):

tons)—Month

U.S. exports

SYSTEM—1947-49 AVERAGE=100

EDISON

354,200.000

MINES):

(tons)

SALES

207,500,000

162,300,000

Aug. 11
Aug. 11

municipal

Federal

273.200,000

304,800,000

Aug. 11

construction

(BUREAU

short

Slab

Aug. 11

construction

Public

of that date:

July:

ENGINEERING

construction..

are as

532,259

487,558

(no. of cars)—Aug.

614,236

NEWS-RECORD:
Total

(in

Increase

Aug.

freight received from connections

ALUMINUM

Benzol

RAILROADS:

(number of cars)

ENGINEERING

321,000

2,492,000

AMERICAN

1,550,000

►1,525,000

either for the

Month

12,873.000

(bbls.)

of quotations,

cases

are

Latest

11.3

Aug.

oil

fuel

or,

Ago

54.4

transit, in pipe lines—

(bbls.) at

that date,

Year

Ago

*53.5

Aug.

Finished and unfinished gasoline
Distillate

Month

Week

•—Aug.
—Aug.

(bbls.)—-——

output

output (bbls.)

Stocks at refineries, bulk terminals, in

Kerosene

Dates shown in first column

Stocks of aluminum

Aug;
—■*
Aug.
Aug.
—;—Aug.
—■—Aug.

output (bbls.)

Residual

§1,589,000

(bbls. of

average

(bbls.)

output

Kerosene

month ended

Thursday, August 18, 1960

production and other figures for the

cover

Production of primary aluminum

6,836,710

gallons each)
runs to stills—daily average

Crude

Gasoline

555.8

INSTITUTE:

PETROLEUM

oil

Aug.

(net tons)

ingots and castings

AMERICAN

month available.

week
Latest

AMERICAN

statistical tabulations

latest week

Indications of Current

annual

—:_——....

5,836,768

Volume

192

Number

5978

The Commercial and Financial Chronicle

OBSERVATIONS...
information"

vestment

presum¬

ably bringing in strong competi¬
tion with the baseball scores. '
These new programs constitute

Exchange's con¬
tinuing
daily
after-the-close
broadcast
of
quotations
over
WNYC. Also remaining as a pop¬
to the

additions

Continued from page 4

tising, are devoted largely to fore¬
casting market swings, to em¬
phasizing changes in quotations
rather

than

mation

the

corporate

concerning

Javits

which

Avenue, New York 17, N. Y., illus¬

are

Technical

BOOKSHELF

Mr.

S.—Background

—Admiral

47,
J.

111.
K.

ment

memorandum

Corporation,

Chicago

(paper).
Lasser's

Literature

ment

Business

Manage¬

Handbook—Edited

by Syd¬

Are You a Good Ambassador (Im¬ stitute
McGraw-Hill, 327 West
Dramatizing
this
"fast-buck"
gadget in this "Numbers
portance of Public Relations) — 41st
St., New York 36, N. Y.
Game" are the hourly changes in literature (and its popular appeal)
Employee Relations, Inc., 32 North $12.50.
the Standard & Poors Composite are, of course, those best-selling
Bayles Avenue, Port Washington, Natural Gas Construction Data for
Stock Average, available in vari¬ masterpieces, the how-to-make a~ N. Y.
Calendar Year 1959—Gas Appli¬
(paper), 25c.
million
ous cities in return for the price
(or
two)
volumes,
so
Manufacturers Association,
Argentina
A report — J. Henry ance
of a dialed phone call.
steadily climbing the best-seller
Schroder Banking Corporation 57 Inc.,
60- East 42nd Street, New
ladder.
The basic thesis of the
York 17, N. Y. (paper), $3.
"Liquidity"—Glorifying the
current
prize
winner of these Broadway, New York 15, N. Y.
Numbers Game
New Threat to Your Job Security:
easy-money
guides
(concerning Atomic Energy Commission—In¬
The ticker is glorified, to the which we shall expand in a sub¬ dex to the Annual Report to Con¬ Foreign Competition — Employee
sabotaging of devotion to invest¬ sequent column), is the useless- gress for 1959 — Superintendent Relations, Inc., 32 North Bayles
ment value! "Liquidity," a high- ness of bothering with corporate of Documents, U. S. Government Avenue, Port Washington, N. Y.
sounding concept, is exploited to quotations in and out of their Printing Office, Washington 25, (paper), 25c.
Operation I. Q.—How to Get Into
rationalize
speculation — as
the "box," when an "investor" literal¬ D. C. (paper), 25c.
floor has been since pool operat¬ ly dancing his way around the
College and Stay There —E. E.
Bituminous Coal Data, 1959—Na¬
Roberts
Henry Stewart, Incor¬
ing days of the flamboyant Mike world can thus so easily amass
tional Coal Association, Depart¬
Meehan and Harry Content days the pleasant millions.
porated, 210 Ellicott Street, Buf¬
ment; of Economics and Trans¬
The discouraging results supply
falo 3, N. Y., $2.
in the 1920s.
portation, Coal Building, Wash¬
Quite significant is the recent great interest to a project newly
Ponce, Puerto Rico — Special re¬
ington 6, D. C. (paper).
experience of Exchange President set up to survey the basis of stock
port — Government Development
Funston on College News Confer¬ market movements by the Univer¬ City Government Finances in 1959 Bank for Puerto
Rico, San Juan,
—Bureau of the Census, Washing¬ Puerto
ence,
the weekly TV program sity.
Rico, paper.
THE IMPLICATIONS
ton's, D'. C. (paper), 10c.
participated in by a panel of col¬
Selected Railroad Statistics—As¬
lege students under the moder¬
Apart from the reasons for these Disarmament at a Glance
Sum¬ sociation of American Railroads,
ator-ship
of Ruth Hagey.
Mr. negative poll results, their impli¬
Vesey Street, New York 7,
mary of positions of the United 63
Funston's
representations
con¬ cations
demand
the
concern
of States, the Allied powers, and the N. Y.
(paper).
cerning the beneficial increase in all interests in the investment Soviet
bloc—U. S. Department of Selected Reactors of the Power
the
market's
"liquidity"
that
community.
State, Washington, D. C. (paper). Reactor Demonstration Program—
would ensue from increased mar¬
Dealings in securities are still—
gin trading, and other aspects of or, perhaps more than ever—per¬ Financing Business Action Under
DIVIDEND NOTICES
portfolio operations, prompted meated by speculative, rather than Today's Conditions — Walter E.
Heller & Company, 342 Madison
Allan Galbraith, son of "the" Ken¬
investment, motivations and tech¬
neth Galbraith, to tout the ques¬
niques.

Office

-r-

25, D. C. (paper), 75c.
Selective

Bibliographies

available

research
science

Corrosion,

Earth

listing

reports

and

industry

Welding,

Preservation by

Food

Irradiation, Rare

Elements,

—

ular

Services, U. S. Depart¬
Commerce, Washington

government

Prerau—J. K. Lasser Tax In¬

ney

A'-A;

brochure.

Japanese Electronic Exports to the

University
of
worriedly survey¬

trated

Businessman's

the

and

Chicago
ing.

infor¬

(695)

Reliability

Quality Control, Adhesives, Linear
Programming and Wood—Office
of Technical Services, U. S. De¬
partment of Commerce, Washing¬

ton 25, D.

C., 10c each.

—

What About College for Your Son
or
Daughter—Employee Relations,
Inc., 32 North Bayles Avenue,

Port

Washington, N. Y.

(paper),

25c.

Laffey Named to Board
Edwin W.

Laffey, a
of W. C. Langley &

senior partner
Co., New York
City, has been elected a member
of the board of directors of West¬

Development Co.

ern

D|V)DEND

NQTICES

crAivAMip

—

tion, "Well, then, sir, do you re¬

gard the stock market as sort of a

DIVIDEND

The

sibility

The Exchange's Tutoring in

Surely
contributing
to
the
weaning of investors to specula¬
tive practices is THE EXCHANGE

Magazine, the excellently edited
publication of the New
York
Stock Exchange.
Its Sep¬
official

tember, 1958, issue contained a
full-length article captioned "The

Order"

sub-head

actual
rest

with

following

the

which

(on

case):—"A guide For the

our

Careful Investor."

scarcely glorifying the in¬
milieu, or stimulating

Also

vestment
the

public's quest for company in¬

two articles in the
issue of the Ex¬
change's official publication. One,
the
feature
article,
"Corporate
Nicknames in the Stock Market,"
formation,

details

are

August

current

expressions and nick¬
names used by the stock traders.
Exemplified by "Bug" for Brook¬
lyn Union Gas; "Tin Lizzy" or
"Flivver" for Ford Motors, "Big
the

gency

Many

the

the 1960 voter.
We
impending contin¬

this

in our article of Aug. 4, "Too
Inflationed-Staked Stock¬

holders," which "Wuld have been
captioned "The Inflation-Staked
Electorate's Fiscal Irresponsibil¬

conclusions, incident¬
ally, receiving the commendation
of
Budget Director Stans, in a
ity,"

(our

communication to

Cyanamid

declared

IBrigcs&Stratton):

the

Directors

this

has declared

Preferred

the

and

Series
ferred

87'/2< °
Stock—$3.50

able October

Stock—$4.50

share on the
Series, both

The

1960;

Pre¬

regular
(50c)

25, 1960, to stockholders of

Common

$1.50

also

Stock

terim dividend for I960,

in¬

(20c)

par

record

payable Septem¬

the close of business on August

citing Secre¬

($3

such

the

stock

of
business

1960.

ican

Cyanamid Company today
declared a quarterly dividend of

August

fifty

forty

cents

dividend

the

1900,

16.

(40<!)

cents

Stock

per

outstanding

Common

the

Company,

Eayable September 30,1960,record
olders of such stock of
to the

Corporation,

to stockholders

the

close of

ber 1.

1960.

business Septem¬

1960.
S.

REGNER, Secretary-Treasurer

KYLE,

Secretary

New York, August 16, 1960.

Wis.

Milwaukee,

P. S. du Pont, Secretary

26,

extra

declared

share on the capital

per

value)

August
G.

has

dividend

and

payable September 15,

14, 1960, to stockholders of record at
22, 1960.

ber

Directors

quarterly

per

twenty cents
stock

the

the third quarterly

Board

pay¬

record at the close of business on October

10,

The Board of Directors of Amer¬

DIVIDEND

day regular quarterly dividends of $1.12'/i
a

cents

COMMON DIVIDEND

Wilmington, Del., August 15, 1960
of

today

one-half

holders

record

September 1,

ftU.U.I.fAtOt*

Board

and

share on the out¬
standing shares of the Company's
3 Vz % Cumulative Preferred Stock,
Series D, payable October 1, 1950,

(JUP
The

Company

quarterly dividend of

eighty-seven
(87 Vad)
per

E. I. DU PONT DE NEMOURS&COMPANY

subsidized

DIVIDEND

The Board of Directors of Amer¬

CORPORATION

the fiscal irrespon¬

and

covered

Speculation

Stop

interest

economy

COMPANY
PREFERRED

ican

accompanying increase in
in lieu of income

vested

Galbraith).

CYANAMID

BRICCS & STRATTON

NOTICES

capital-gains

operation?"
(Incident¬
emphasis, well seasoned by the
ally we are informed that this
one-way
inflation psychosis, has
"$64 question" brought forth five
greatly enlarged the electorate's
approving fan letters to Master
gambling

AMERICAN

<•

1960

tary Anderson's warnings against

growing nqtiqn that there is

"the

SUPERCRETE

security in speculation than

St.

in savings")
appears

hereby given that the Board of
■of Directors has declared a stock dividend
Notice

large

Not

at the

literature fan

Stock

these

popularity, of

latest

the

Shares
on

best¬

the

sellers.

r1—:■

Much is still to be done in en¬

oA(M

later

':jSr

the

Capital

the

record

day

18th

issued

than

the

dividend is allotted
holders of the Common

stock

rata

pro

of the par value of
cents each on every one

Company

Company.
said

The

attitude;

Common

the

(25c)
(lOOi outstanding Common Shares

hundred

the spec¬

fully paid and non¬

(2)

of two

rate

twenty-five

but, conversely,
the latter explains the sensational
ulative

assessable

only does the "How to Make

Millions"

DIVIDEND

NOTICE

that a disturbingly
proportion of
"research"
engaged
in by
the investment
world is exploitedyfor the facilita¬
tion of popular stock tips,
It

LTD.

Boniface, Man.

the

shall

business

1960,

carry

and the
not

date

day of August,

31st

SOPRIITG

of August,

1960.

R. DUNSMORE, C.A.,

Secretary-Treasurer.

Boy" for Superior Oil, and "Thy¬ hancing the public shareholder's
roid"
Thiod
Chemical,
"Tough understanding of his part-owner¬
Guy" for Texas Gulf Sulphur: ship in a business property, not
"some
of
these
nicknames
are
in a quotation. The Javits find¬
prosaic,
others
are
humorous; ings regarding his ignorance con¬
some are derogatory, others com¬
cerning the functions of his
plimentary; some are gay; and a company constitute a severe in¬
few are even unprintable."
dictment
of the effectiveness of
"American
Motors
Sets
Fast the expansive and expensive im¬

«l»0

DIVIDEND

III! CIQ.ftt IT! I

NOTICE

Regular quarterly dividend of $1.75 per share on the Preferred
Stock and regular

quarterly dividend of $.55 per share on the

Volume Pace," is the other main
article relevant to our critique;

that this
ahead in a close

the hot news

reporting

issue "came out

Packard
for volume honors in the first half
with

race

Studebaker

the close of business

September 9, 1960. Checks will be mailed.

tb.al, whose public relations firm
participated in the management of
Javits-United Shareholders proj¬

New York, August 7 7, 7

960

lar volume

one

into

disregarded), expands
of the year-to-

discussion

changes in such ratings—all
mention
of any
of the

year

without
value

other informational

data

Other

The
more

"Fast-Buck"

"making

staidly
gains" literature

Literature

buck" or,
termed, "capital

fast

course

is not

NATIONAL UNION

LORILLARD RESEARCH

thinks that it has. He advo¬
cates distribution of three annual

one

for the

for

the

Fire Insurance Company
TWO

accountant,

Perhaps

our

OLD

GOLD

FILTERS

KENT

NEWPORT

Regular

Regular
King Size

worries are need¬

and will be ultimately re¬
solved
by
Chicago University's
above-cited MR. UNIVAC!

YEARS OF TOBACCO EXPERIENCE

Pittsburgh, Pa.

Cigarettes
OLD GOLD STRAIGHTS

vestor.)

HUNDRED

securities analyst, and
spoon-feedable in¬

the

King Size
Crush-Proof Box

SPRING

King Size
EMBASSY

King Size

155th DIVIDEND DECLARATION
The

Board

NEWARK,

Little

Chewing

Turkish

Cigars

Tobaccos

Cigarettes

The

BEECH-NUT

MURAD

BAGPIPE

HELMAR

UNION LEADER
-

of this

i tember 23,

BRIGGS

Directors

August 2, 1960 de¬
clared a cash dividend of Fifty
Cents (50tf) a share on the capi¬

Tobaccos

With Hirsch Co.

company on

Smoking

J.—Louis H. Gold
confined
to
the
Exchange as a has joined the New York Stock
source.
The member firms along Exchange member firm of Hirsch
with many of the "services," with & Co. as a registered representa¬
their
circulation
stimulated
by; tive in its branch office at 11
highly paid promotional adver¬ Commerce Street.
of

G. O. DAVIES, Treasurer

FIRST WITH THE FINEST CIGARETTES-THROUGH

ect,

less,

pertaining to the "chips."

payable October 1, I960, to stockholders of record at

photography, art, color, been
over-done?
(Mr. Roy Blumen-

reports:

comprehensive

declared

via

1960," the two-page piece, with
table of the 25
most active stocks (rated as to the
number of shares traded with dol¬

outstanding Common Stock of P. Lorillard Company have been

provement of the company annual
report. Have as the spoon-feeding

FRIENDS

INDIA

HOUSE

BETWEEN
THE

ACTS

MADISON

tal stock.

dividend is payable

Sep-

1960, to stockholders
of record on September 1, 1960.

HAVANA
BLOSSOM

Treasurer

The Commercial and Financial Chronicle

(696)

Thursday, August 18, 1960

(Santa

Sept. 21-23, 1960

Barbara, Calif.)
Board
of Governors

WASHINGTON AND YOU

Invest¬

Association

Bankers

ment

fall

meeting.

BEHIND-THE-SCENES INTERPRETATIONS

Sept. 23, 1960 (Philadelphia, Pa.)
Bond Club
of Philadelphia

FROM THE NATION'S CAPITAL

The

Annual Field Day at the
Huntington Valley Country Club,
Abington, Pa.
35th

WASHINGTON, D. C.—The im¬

500 miles of these

pact of the compact automobile
in this country is being watched

past

official Wash¬

closely by
ington.

very

production of 1960 model
cars comes
to an end, and the
1961
models
get underway,
there is more interest in what
lies

for

ahead

automotive

the

industry than ever in the Na¬
tion's

Capital.

The

Public

Bureau

Roads

parent, the Department
of Commerce, the Treasury De¬
partment the Department of La¬
bor, and Congressional commit¬
tees1 are scrutinizing every bit
information

obtain¬

that

the subject of compact
Government economists are

able

cars.

likewise interested
The

compact

that

and

urban

Congress

Vl'-

the

and

the

and

Bureau

time.

some

Larger Car

Sales

cost

less—to
and

there

But

nite.

thing

one

defi¬

less—substantially

operate

compact car,

costs less to build these
The unions, and the

vehicles.

Auto

United

Workers

par¬

ticular, are apprehensive over
the prospects of what it might
do to the employment and wage

yields from

Dance

the

Big Three, General Mo¬

tors, Ford Motor Company and
Chrysler Corporation, sold ap-

proximatley 600,000

cars

and trucks the first half of 1960

with

compared

the

'Corre¬

sponding period of 1959.
Yet
were

their
down

combined
than

Car

Imports

000, which caused

some

profits

lifting at the Treasury Depart¬
ment.

Automobile

Association in Washington,
industry's trade association,

ers

the

conviction that
that are
being imported into the United
States has Reached its peak.
the

expresses

California, where there
automobiles

other

state,

have been
the

are

than

sizeable market for

several years.
How¬
ever, the domestic compact cars
have cut in sharply on the im¬
past

ports.

Department of Commerce
that

the

rec¬

Volkswagen has been the
leader of the import field for
several years.
New foreign car
registrations
the
first
four
1960

with

181,781,

amounted

Volkswagen

the

Volkswagen regis¬
trations January through April

totaled

52,294 and Renault 27,-

Other

new

foreign

during

months

this

regis¬

car

first

the

four

included:

year

umph

to
40%, and production apparently
is

headed

for 50%

market, if not
Impact

of the

8,753,

than

not

Other Industries

aluminum

industries

clear, but it is apparent
impact will be felt.

that the

The

petroleum

"scared"

over

the

industry is
ramifications,

but the automotive manufactur¬

confident with more and
vehicles in use that there

ers are
more

will be no decline in
consump¬
tion of petroleum products.

Officials

Public Roads

success

audited,

tion
net

picture

another

half

first

the

flected

the

year

re¬

lower

profits from
the Valiant and the Dodge Dart,
the company's economy cars.
It

profits and the
rials

use

labor

and

executive

and

the

because

lower

of less mate¬

that

ment

tive

both

the

legislative

5,941,

Tri¬

702.

Chrysler have

with

than

With

third

that

the

trend

will not be
disruptive in the field of reve¬
compact

heavy

than

the
are

Bureau

deeply inter¬

according

authoritative re¬
ports in Washington from De¬
troit, the motor capital.
Iron
trade

Age,

the

automotive

could

said a first
earnings by

manufacturers

attributed

premium

paid

authoritative

publication,

quarter decline

prices

for

steel

auto

part to
makers

collected,

burden.

some

that will
1960

model

about

[This

turned
year

cars

out for

Club

"Summer

bine

Denver

is expected to

column

Colum¬

Country Club.

Sept. 9-11, 1960

re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's"

own

Pacific

Northwest

vestment

Sept. 11-14,

Group

Bankers

annual meeting
Portland.

biggest

tinued

second quarter,
to

Association

at the Sheraton-

1960

National
ciation

Security

Asso¬

Traders

open

to traffic.

Federal Highway Ad¬
ministrator Bertram D.
•

says
on

construction

Tallamy
underway

another 4,700 miles of these

divided, multi-laned,. stop-light
expressways. Another 10,-

-free

1960

(Hollywood

Bankers

Investment

Association

Stock

the

Exchange
the Board of

Statler

Hilton

Hotel, Hartford, Conn.

Lodge.

Smith Named Director
Earl

E. T. Smith, diplomat and
financier, has been elected a Di¬
rector

Sept. 12-13, 1960

(Denver, Colo.)

Rocky Mountain Group of Invest¬
Bankers

Association

meet¬

ing.

nounced

1957

Association of Customers' Brokers

Astoria.

Cincinnati

Smith,

annual

outing

—

cock¬

tails and dinner Sept. 15 at Queen

City Club; field day

Sept.

Country Club.

who

an¬

Leverone,
United

was

Ambassador to

Cuba

from

government service. He is a mem¬
of the New York Stock Ex¬

ber

director of Palm Beach

Trust

director

Ohio)

Nathaniel

1959, has a broad varied
experience in both finance and

Bank

(Cincinnati,

change;

Sept. 15-16, 1960

Canteen
was

Chairman.

Board
States

(New York City)

Automatic

Company of America, it

Mr.

Sept. 14, 1960

(Canada)

Investment Dealers Association of
Park

meeting

Governors

ment

Railroad;

Co.; and

New

former

Central

York

Dock

Com¬

New York Dock Trade Fa¬

pany;

cilities

Corp.;

and

Wright

Aero¬

nautical Corp.

at
Attention Brokers and Dealers:

TRADING MARKETS

factor in the

but profits

Botany Industries

con¬

Indian Head Mills

decline.

Official Films

Southeastern Pub. Serv.

The publication said that Ford
stands

more than 9,100
the 41,00CLmile inter¬
state system that
began under
the 1956
Highway, are now

27-Dec.

Beach, Fla.)

Canada annual meeting at Jasper

Ford's Experience

Federal Highway Program in
High Gear

at the Drake Hotel.

Convention.

Annual

Incidentally,

ence

Nov.

June 22-25, 1961

Sept. 12-13, 1960
Firms

Nov. 17-18, 1960 (Chicago, HI.)
American
Bankers! Association

Annual Convention at Hollywood
Beach Hotel.
^

(Sun Valley,

program of all time under way.

miles

In¬

Idaho)

Kenwood

views.]

10,1960 (Minneapolis, Minn.)
Group of Investment
meeting.

Bankers Association

29th Mid-Continent Trust Confer¬

(Portland, Oreg.)

Municipal Bond Dealers Group ol

intended

the

annual

the

Frolic"

the

6,000,000.

convention

Minnesota

(Denver, Colo.)

Aug. 18-19, 1960

ing at the Starlight Roof, Waldorfnew

(Miami, Fla.)

Security Dealers Associa¬

annual

Nov.

annual dinner and business meet¬

others.

The total number of

with

meet¬

during

ordered

less of

was

tion

compared

Association

Key Biscayne Hotel.

the strike in late 1959 and 1960.

This

construction

General

Motors,
but General Motors is expected
to
pay
more
attention to the
compact market in the future,

ested in what the future holds.
Under the Bureau there is the

highway

has

compact

motorist

American

The

nues.

car

easily taxed and the tax is easily

the

IN INVESTMENT FIELD

car

instances, Washington
believe

officials

families

second and

many

the

and

buying

pays

building

Florida

Association

interest.

usual

con¬

ing.

watching the automo¬

are

industry

Invest¬

Sheraton-Cadillac

Bankers

ment

Bond

readily acknowledged that
earnings of the company in

the

anniversary

Oct. 28-30,1960 (Hot Springs, Va.)
Southeastern Group of Invest¬

the

forts

Just what effect this will have
the rubber, copper,
cotton,

be rated nothing less

roaring

Officials of Chrysler Corpora¬

COMING

com¬

been devoting more of their ef¬

and

can
a

Ford's

(Detroit, Mich.)

Association

Nov. 3-4, 1960

short,

emerges."

4,691, and all others totaled 45,-

Both Ford and

over

assembly line and in the dealer
showroom.
But
when
profits

cars

steel

Simca

total

more.

pacts

5,398, Austin Healey 5,Vauxhall
5,040,
Hillman

239,

out

branches of the Federal Govern¬

tive production in 1960 involved
the compact cars. Next year it

sharply

already turned

Comet models.

and

sales far ahead of the runnerup,

393.

has

July, 44% of Ford Motor Com¬
pany's car output was Falcon

German-

made

months

Dinner

Ballroom

Hotel.

500,000 compact cars and trucks
in
the
1960 model period.
In

English Ford 10,941, Opel 10,383,

rise

28-29, 1960

vention

are

show

Fall

Grand

ment Clubs 10th

sales

Fiat,

Oct.

any

car

foreign

in Washington pointed out that

expected

Loop-Hole!"

Manufactur¬

about 25% of the total automo¬

Pretty Good

National
The

trations

A trade association executive

Themselves

Peak

annual

the

the Biltmore Hotel.

"Left

the Renault.

$30,000,eyebrow

(New York City)
Traders Association of

York

New

auto¬

compact

future.

the

October 15, 1960

Security

meeting.

going to happen, if anything
drastically, to the gasoline tax

ords

structure.
The

Oct. 13, 1960 (Cincinnati, Ohio)
Ohio Valley Group of Imestment

mobiles

meet¬

Association

Bankers Association

interested in what

the tide of foreign cars

Industry Down

ing.

passed.

are

Bankers

ment

Bureau

Highway Act of
This is one
why the Department of

reason

far, however, there is not
enough
information
available
to
show a
definite, clear cut
will take

Oct. 12, 1960 (Cleveland, Ohio)
Ohio Group of Invest¬

the

when
was

Huntington-Sheraton Hotel.

Northern

of Roads dreamed that it would

1956

Bank

(Detroit, Mich.)
Group
of Investment
Bankers Association meeting.

highway programs,
substantially
more

costing

cost

Michigan

gasoline

levy

from

than

(Pasadena, Calif.)

Oct. 11, 1960

which
course, separate and apart
the
primary,
secondary

Waldorf-

Women 38th annual convention at
the

The Interstate program,
is of

the

Association

National

1960.

fiscal

Oct. 10-13, 1960

$170,000,000 more than

be about

dinner

Astoria.

This will

York

annual

$2.87 billion of
for payment of

which started July

Commerce

taxes.'V/i.

trend.

1960 (New York City)
group of Investment
Bankers Association of America

of the interstate

90% share

roads

companies, and less tax money
for the Federal, State and local
subdivisions

its

great deal.

ufacturer; less profit for the oil

Oct. 5,

New

costs for the current fiscal year

apparently

car

less profits for the man¬

means

available

funds available

its

and

are

The Federal Government will
have

highways

preliminary
engineering
right-of-way acquisition.

and

out

what

clear

the smaller

example

car

means

the way of profits.
"Com¬
pacts and lower profits appar¬

ently are going hand in hand
at companies which must tool
up
for and market mediumprice and high price cars as well
as compacts," said Iron
Age. The
Company (Ford) is the leading
builder of compacts this year.

Carl Marks
FOREIGN
20 BROAD

SECURITIES
STREET

TEL: HANOVER 2-0050

& Ho. Inc.

York telephone number Is

CAnal 6-3840

SPECIALISTS

NEW YORK 5, N. Y.

•

Our New

TELETYPE NY 1.971

LERNER 6 GO.
Investment Securities

10 Posi Office

Squarei Boston 9, Mass.

Telephone

Teletype

HUbbard 8-1990

BS 69

Full text of Commercial and Financial Chronicle : August 18, 1960, Vol. 192, No. 5978

FRASER