Full text of Commercial and Financial Chronicle : August 20, 1959, Vol. 190, No. 5874

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Financial
Reg. U. 8. Pat. Office

Volume

190

Number

5874

New York

7, N. Y., Thursday, August 20, 1959

Price 50

Cents

Copy

a

EDITORIAL

As

SeeWe
It

Many words have been
almost said wasted)
chev

will

visit

or

this

to

Bank Mergers: Important

of late

used

Factor in Economic Growth

(we had

By FRANCES W. QUANTIUS

guessing what Nikita Khrush¬

he will find out for himself how

factors

which

should

prompt

bank

corporations

have

supply, and

previous highy placed

grown

faster than the banks, largely arising from mergers.

Points

to

seems

to be that either

frankly what they
Stalin

is

them.
he

said

He

well

ceded

have

to

done, refuses

so

how

far

rich

as we

happiness to

can

us

are,

recall he has not

con¬

are

his

in

the

habit

of

making

be that

he is

he will

here

are

assume

tialities

for

Since

are

that what he

much

so

the main

give false

fe

More

vehicle,

excesses.

at

in

the

of

these

in

the

Quantius

future.

page

term

data

are

in

term

loans

I

for

large business borrowers.

23

Reserve

Bank

Bulletin,

Term

April

Lending

1959,

p.

to

Business,

1955-57",

Federal

353.

incompetence,
to

tial undertakings in

our

"Securities in Registration"

Section,

starting

BROKERS

tion.

The

other

probability,
\

or

j

at

!

stability.

Patterson

future in terms of probabilities that
them seem so inconclusive.)

makes

Anyway, it seems to me that for some time yet to come,
further inflation is more likely than any substantial and

enduring deflation.

But this is not to

deflation will never come.

Indeed, it

on

page

y

Burnham
MEMBERS NEW

YORK

and

AND

15 BROAD STREET, NEW
CABLE:

page

24
of

Company

YORK 5, N.Y.

Bonds and Notes

•

OF NEW YORK

Dl 4-1400

Bond Dept.

Teletype: NY 1-708

Active

Dealers,

T. L. Watson &Co.
Member#

STREET

NEW YORK 4, N. Y.

goatfuveAt company

BANK

BONDS

MUNICIPAL

BONDS & STOCKS

Commission

FOR CALIFORNIA'S
CIVIC

Inquiries
Orders

PERTH

AMB07

IMPROVEMENT

Invited

Executed

On All

Exchanges

r

DIRECT

WIRES TO

MUNICIPAL

DEPARTMENT

Pattimo* Securities

1-2270

MONTREAL AND TORONTO

NEW YORK STOCK EXCHANGE

115 BROADWAY
NEW YORK

1

NORTH LA
•

Bank
40

Exchange Place, New York 5, N. Y.

SALLE ST.

* CHICAGO

BONO

DEPARTMENT

Grporatioh

Goodbody & Co.
MEM8ERS

•

Chase Manhattan

Correspondent—Pershing 8c Co.

CANADIAN

Teletype NY

BRIDGEPORT

the

Southern

CANADIAN

CANADIAN

-

New York

on

SECURITIES
Block

Stock Exchange

BROAD

BOND DEPARTMENT

Securities

Markets Maintained
Banks and Brokers

Canadian

25

i

1832

New York Stock Exchange

Securities

Inquiries Invited
California

To

American

Exchange

San Diego, Santa Ana, Santa Monica

TELETYPE NY t-2262

COBURNHAM

Agency

Pasadena, Pomona, Redlands, Riverside,

AMERICAN STOCK EXCHANGES

Net

Investment




Public Housing

17,

Encino, Glendale, Hollywood. Long Beach,

Distributor

DALLAS

on

Economic Society

State, Municipal

30.

Members Pacific Coast

THE FIRST NATIONAL CITY BANK

"J?/

'

be inevitable.

Continued
address

that such a

say

may

by Mr. Patterson before the
South Florida, Miami, July 29, 1959.
-An

Offices in Claremont, Corona del Mar,

SECURITIES

ESTABLISHED

first

or

Associate Member American Stock Exchange

FOREIGN

&

Dealer

.

probability

likelihood. (Perhaps it is the inclination of most economists to assess the

•

T.

greater

,

to be stated in terms of

Robert

the

present

the second of these conclusions has

|

UTILITY

BANK

•

that
.

Members New York Stock Exchange

RAILROAD.
PUBLIC

CORN EXCHANGE

Underwriter

is

the

Because we cannot know with perfeet certainty what the future holds,

California

CHEMICAL

,\

sup¬

time is
inflation rather than deflation

more

628 So. Hope Street, Los Angeles

,

INDUSTRIAL

ST.,

are

is that inflation, of whatever
kind, is inevitably harmful to a na-

Lester, Ryons & Co.

and

DEALERS

HAnovcr 2-3700

30 BROAD

conclusion.

a

One-

!

UNDERWRITERS

Municipal

nt
bond department

inflation.

and

Housing,:

Securities
telephone:

speculative

ported by an abundance of evidence.

U. S. Government,

State and

and

against

securities

in

Public

all

hope to break with that supposed

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
are afforded a complete picture of issues now registered with the SEC and poten¬

DEALERS

hedging

conclusions, both of which

129%

that

and

tradition by reaching two important

available.*

and

Reserve

President,

them end to end, they still wouldn't reach

Outstanding amounts

detailed

the

promptly

Federal

Most of you have heard the old
saying that if you were
to take all the economists in the United States and
set

commercial

loans increased

Maintains

Congress,

waste,

of

At a time of emphasis upon accelerated
economic
growth, it is especially vital to the nation that the growth
of banks keep pace with that of the other corporations
which they serve and which in many cases have recently
Continued on page 20
1 "Member

on

that

market.

obstacles

the most part this credit is extended
to

tions about the Soviets that could be dissipated
Continued

Cites

stronger residual-lender role

even

growth
Frances

enough, in view of the fact that one hardly
that the President harbors misconcep¬
•

in

bottlenecks,

These data also show that the largest
banks experience the most rapid

what

to

suggests

an

which

supposes

•-

mies,

period 1946-55 and 48% from
1955-57, the most recent years for

influence the President may be able to exert on
the rank and file of the Russian people. This is
natural

results

the

growth

Asserts that both

be monetized, with inflationary

Decrying "creeping inflation," he holds it
overly full employment, inefficiencies, disecono¬

banks have potentialities for playing

*

consideration is given

postwar

can

independent of

the term loan, a relatively new credit

hower may learn about Russia in his visit to that

country.

the

the price level.

on

to

of funds for business

source

and

source;

when

sees

be

goods

expansion, commercial bank loans
are
a
vitally important peripheral

well

may

big rise

special interests.

high rate of 35 to 40% per decade. Heavy investment
plant, equipment and research has been largely re¬
sponsible. While corporate internal financing represents

Less is heard about what President Eisen¬

,

in

1945 national output per man hour has risen

things the "capitalists" want
him to see and
nothing else, with the result that
he will go home of the same
opinion still. It ap¬
pears reasonable, however, to hope that some of
his delusions about us may in some part at least
be wiped out by what he sees.
r

of

the

im¬

concern

appearances

*

role

more

must

future, provided their growth continues.

the

are

stronger residual-lender

a

a

inflation, with in¬

Notes the twin

phenomena
inflationary part of the money

great increase in the

bring

expansion, commercial banks have poten¬

playing

a

effects when it is created for
purposes that will not

injuring

Concludes that although
source

expects further long-term

public and private debt

have

mergers

in

said to

good at it, it

so

showing

as

remaining independent banks.

funds for business

serious

most

experience

corporate internal financing represents the main

that

we

ponderables, and since the Soviets

impressions, and

world

powerful

Since

us.

"misconceptions" of

and

the

believe

to

York

industrial

been beneficial to the merged institutions while not

if they have he, like

or

himself has informed the

knows

although

saw

New

that

Patterson

of

visitors from the Soviet Union have not told him

demonstrating

Mr.

termediate periods of deflation.

cites

record

are.

American Institute for Economic
Research,
Great Barrington, Mass.

She

mergers.

The

idea

_

University

Quantius notes popularity of the term loan, with most
rapid growth shown in their extensions to the larger busi¬
ness
borrowers.
Suggests this as one of the important

rich, happy and

powerful this nation and this people

What Can You Do About It?

Dr.

those who hope

are

Today—

By ROBERT T. PATTERSON *

Associate Professor of Finance, The Ohio State

learn during his forthcoming

may

country. There

Inflation in the U.S.

Teletype NY 1-702-3

WHitehall 4-8161

of

America

N. T. & S. A.

San Francisco

Los

Angeles

Financial Chronicle

The Commercial and

.

.

.

Thursday, August 20, 1959

s

(726)

2

For

in the

participate and give their reasons

For

1.

the

combined advantages

of:

market# in more than

400

Primary

contained in this forum are not intended to be, nor

(The articles

they to be regarded, as an

unlisted securities.

coming

& I'itzhugh,

39 years

3.

Nationwide private
Broader Coverage.

5.

Fast,

market)

ter

of

ents

New York Hanseatic

suc¬

a

in

is

in¬

New York 5
Teletype NY 1-40

120 Broadway,

•

CHICAGO

k

•

SAN FRANCISCO

adequately fi¬

Principal Cities

n o

I1I11§

a
James

& CO. INC.
Y.

all

in

a

board

other industries catering to
leisure-time activities, the smallboat business has enjoyed excep¬

Securities

during the last dec¬
ade.
And fiber glass boats have
far outstripped the other types in

Dealers

percentage

brokerage service

Unlisted

for Banks and

tional growth

Exchange Place. New
Phone:

York 5

WHitehall 3-7830

Teletype No.

150,000.

the total boat

30%
the

Industries

Life Insurance Co. of Va.

Commonwealth Natural Gas

1958, with
percentage continuing to in¬
of the market in

crease.

Incorporated on June 30, 1958,
has had its share of
start-up difficulties, but most of
these are now'behind it.
Its first
the company

fiscal year was a

STRADER and COMPANY, Inc.
TWX LY 77

—5-2527——

Private

Wire

to

New

York

which

riod

few

With

City

Banks, Brokers and Dealers

*EXTRUDO-FILM
CORPORATION
*P0LYCAST
CORPORATION

than

COMPANY
BOTANY

INDUSTRIES, INC.
Bought

Quoted
'

Request

and

models

boat

Wizard's

is

September,

line

1959

complete

line

was

a

"hit"

in

and February boat

the

In

the

by

the

first

months

Principal Cities




1958
were

labor

force

had

any

previous experience in fiber glass
reinforced plastics.
From March, 1959, through June,
sales and earnings before taxes
were

follows:

as

$97,000

$3,000

27,000
33,000

The

of

a

profit figure for May was
no"-recurring write-down

about

in the carrying
value of certain molds and equip¬
$30,000

-

•

agreement

Well,

about

already
has
the
ready for most of the 1960

of the

future?

the

about

|

Although the peak of the boat
selling season
passed with the

owned

13

utilize

used

for

appearance

molds
Man¬

of the
year's boats.

many

this

expects no difficulty in
having the whole line ready for
introduction
in
September
vs.

this

missed

were

year

27%.

ficiency

in

a

000

$2.00,

located

in

Wizard

line

handle

States

25

number

the

and

After

warrants,

Wizard

of

California

shares

of

with

the
is

project sales and profits

in advance, even
for a long established company.
But he anticipates that in fiscal
1960,
Wizard
will realize sales
near the $2 million level and net
more

HAROLD

S.

Partner, Hay,
New

&

York

There
breeds

Ling

is

success."

was

of

work

out

subsequent

alize the company

with an annual
sales
volume of $5
million and
profits of from $1.25 to $1.50 per
in

the

you

are

share

three

next

four

or

years.

If
1

am

tempted to say that

ahead and say it.
friends in the invest¬

crazy,

go

Some of my

business

ment
ago

when

this

forum.

said

It

then

as

my

when

—

around

the

finished

12

its

ter

it

book

value

is

and had

just

in busi¬
share on a
than $2.00.
I
limb and said:
year

per

less

out on

a

difficult

not

was

available

was

second

earning 44tf

"It

I

very

the

few

chances
have

no

mending

sufficiently good

are

hesitation

speculative

in

recom¬

purchase

of

Ling

tion expresses my current
on

Wizard,

years
a

ago

very

As

on

just

as

what

cp°culativ«

of

March

31,

it

was

thoughts
did

iour

then also

sto^k

"

1959, date

i-J'

of

r

.

submit your

Perhaps

offerings.

J

help.

J

we can

Phrfas - Bolto.

$

i-

an

con¬

he

or¬

ganized i n
1946

Harold S. Munroe, Jr.

a s

a n

electrical

con¬

tracting

firm

was

ful

from

the

James

Opportunities Unlimited
IN JAPAN
for

Write

our

Monthly

Digest, and our other repeats
that give you a pretty clear ^
picture of the Japanese
economy as a whole.

success¬

beginning.

In

1946,

23 years old.
?
the ripe old age of
about 37, Mr. Ling is Chairman
of the Board and principal stock¬
holder of Ling-Altec Electronics,
Ling
Today, at

was

Nomura Securities Co., Ltd.
61 Broadway, New

This

is

not

orders

an

York 6, N, Y.
Green 9-0187

BOwiing

Telephone:

or solicitation for
particular securities

offer

for any

Inc., with anticipated sales in 1959
of at least $27,000,000, and earn¬
ings of

a

least $1.50 per share on
approximately 1,410,-

each of the

of

shares

000

common

standing.

stock

out¬

did

Electronics

not

just happen. It has been put to¬
gether over the years by a series
of
carefully calculated acquisi¬
tions, each of which has filled a
void in the product line or satis¬
fied a need in the operations of
the parent company.
tion it may

value

by

of

CROSS
mutt carry on I

In this situa¬
be truly said that- the

the

whole

the

exceeds

substantial margin.

a

where

this

does

carefully

structure fit into
burgeoning electronics indus¬

built

corporate

try. In the first place it should be
divided

be

RED

of the value of its parts—and

Just

our

Your

t

Ling-Altec

that
about

1959

sales

50-50

will

Quotation Services
for 46 Years

between

commercial sales and sales related
to

national defense. National

fense sales this year

de¬

will be prin¬

cipally in the field of high-pow¬
ered electronically driven vibra¬
tion and acoustic test equipment,,
a relatively new and .rapidly, ex-

National Quotation Bureau
lipcorporated
Established 1913

46 Front Street
CHICAGO

-

.

.«

Continued

j,

LOCUST STREET, PHUA. % PENNA.

Electric

which

;

(Ahoc.)*

boston & Pitts. Slock Sxih.

and

,

CO.T

pAliERT J.

tp

Company,

emphasized

By
changing
the
earnings
"guesstimates" in the quotation
above to agree with what I said
two paragraphs back, the quota¬

t

e c

tractor

At least I think

years.

{
J

a

{INACTIVE ISSUES {

J.

exam

become

sum

profits of $2 to $4 a share on per¬
haps two million shares within a

1

electrical

envision

to

e

cian's

to

Litton In¬
favorite security

level

of

years

name

ness,

went way

that

seerrs

lucky enough to
dustries

four

it

contributed

last

I

$

.

find

home for certain of your

Texas, ever to
pass the mas¬

years

It is not difficult to visu¬

market.

James

he became the

about 40£ per

to

sales
and earnings should trend higher,
not only because the boat market
should continue to grow, but- be¬
cause
Wizard, and other makers
of quality fiber glass boats, should
get a
higher percentage of the
In

If you can't

v'

youngest man
in Dallas,

(75% of the warrants are
publicly owned) total shares out¬
standing would still be only 361,000 and the earnings figure above
would

■

C. I

Navy at the end of World War II,

$2.00

share.

STOCKS

Exchange

When

amount to about
Allowing for exer-.
100,000 warrants at

the

INSURANCE

LIFE

separated from the U. S..

55£ per share.
cise

at

saying that "success

a

Investment Bankers

&

Broadway, N.Y. 6 COrtlandt 7*5680

*

this would

ing,

111

at¬

Co., N. Y.

Stock

261,000 shares now outstand¬

the

Tokyo, Japan

MUNROE, Jr.

Fales

On

$150,000.

of about

after taxes

stock

warrants

Ling-Altec Electronics, Inc.

or

Yamaichi Securities Co., Ltd,

tached.

The writer knows that it is very

Inc.

of

Affiliate

furnished

common

75,000

City and Miami.

year

of

company's fixed assets,
working capital was pro¬
by a public offering of 150,-

Members

a

off New York,

exer¬

holdings will become

steadily growing. Boats are sold
as far away as Omaha, New York

risky to

Securities Company

Wizard

produces for sale in

dealers

boat

100

states that

Yamaichi

most of the

has

Approximately

write

.

Wizard

com¬

or

in

Brokers

well trained labor
proven
its ef¬
the past six months.

has

which

force

all

California's

vided

pany now

line of boats for sale

western

of

while

The

Call

p

,

cise

through not having boats in pro¬

enough.

For current information

,

33%

by

the 37 eastern states.

duction

early

STOCKS

month.

About

"

JAPANESE

present time is

share.

a

of Tennessee

in

dollars

thousand

hundred

Sev¬

1959 line.

for the

February

square

a

NY 1-1557

Mobile, Ala.

Wizard Boats, Inc.
California)
which produces

are

the

will

sales,

$2,000

are

$1.60

same

in

new

65,000

'

La. - Birmingham, Ala

Direct wires to bur branch offices

presently outstanding shares

(of

eral

the

for

payments

the stock at current levels."

20,000 (est.)

125,000i

June

HAnover 2-0700

New Orleans,

000, including cash of $118,000 vs.

the

to
Net Before Taxes

106,000
May—215,000

ment.

Direct wire to

the

was spending money hiking
employment from about 20 per¬
sons
to
nearly
100.
Practically

the

published balance sheet

Book value at the

company

pany

after

Tel. HAnover 2-4850

of

paltry $99,009 and the company
went $70,000 into the red. Besides
not having its new boat
models
ready * until February, the com¬

1930

Street, N. Y.

public.

buying

five

a

of

sales of about

on

year,

American Stock Exchange

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

small foot plant at Dickson, Tennessee,
for the amounting to $161,000, on which

reported

be

to

York Stock Exchange

Members New

Wizard had current assets of $274,-

but

shows and has

present fiscal year, Oct. 1,
through Feb. 28, 1959, sales

March

37 Wall

January

subsequently been enthusiastically

April

ESTABLISHED

was

production until February,
1959.
But
apparently the com¬
pletely redesigned line was worth
waiting for. The company's boat

Sales

SreeweariCompcm^

winding

is

in

none

Sold

hope

with hope realized. Although
the
usual
time
for
introducing

received

TUBOSCOPE

on

in

up

not

*Prospectus

Sept.

boats

,

new

I

30, 1958.
production

ended

virtually
no working capital, it lost $41,000
during
that period. It is now
nearly through its first full fiscal
year, a year that started with little
more

For

three-month pe¬

during the off-season and

LYNCHBURG, VA.
ID 39

The current
believed to be
Stated
another

fiber glass boats had 5% of
market in 1954 and

way,

American Furniture
Bat sett Furniture

is

rate

around

1957

in

produced;

Steiner, Rouse &Co
Members

line of boats—which will be com¬

60,000.

were

annual

Trading Interest In

that

were

there

4

It

between 1946
and
1953 only 4,000 fiber glass
boats
were
made.
But in 1956,
40,000

NY 1-2762

increase.

sales

of

estimated

is
40

reinforced plastic out¬
motor boats.
Along with

many

Security Dealers Ass'n

Render

of

fiber glass

Members
N.

Douglas

manufacturer

a

Co-New York

a

agement

N.

is

dollars

looks like

now

full

pletely

standing.
Wizard

will

molds

of shares out¬

WEINBERG,
GROSSMAN

S.

profit

How

and

only

has

Munroe, Jr., Partner,

c$. opige

exactly

not,

and should be
in August, then

thousand

few

a

the

w-how, is

nanced

is

S.

—

July

same

it

xM "f

sales

and

BOSTON

Private Wires to

the

spare,

first

production

PHILADELPHIA

in

$900,000.

a
quality
product, has

Stock Exchange

30th

Harold

to

So aght—Sold—Quoted

Inc.

Sales were near the $100,-

with

a

makes

dustry,

Associate Member

Electronics,

could be right at the break-even current
liabilities of $102,000.
I
point for the fourth quarter. Since understand the picture is about
the company has already made up the same today.
The only longthe loss of the first five months," term
debt
is
a
lease
purchase

capital
gains situation
dynamic

Established 1920

WOrth 4-2300

have ail

fiscal year

the

to about $75,000 in Septem¬
If such sales develop, Wizard

ber.

cessful

—it

Corporation
American

outstanding

an

as

speculation. It appears to
the
ingredi¬

of

Sept.

about

(approximately 4, Over-tbe-Coun-

dependable executions.

Nashville, Tenn. (Page 2)

outlook

the

Summer,

rest

level

000

stock drop

this

regards

writer

The
4.

end

bleak.

Inc.

of Tennessee,

Boats

Wizard

wire system.

of

the

for

Inc., Nashville, Tennessee

0-T-C experience.

2.

Berry, Douglas & Fitzhugh, Inc.,

offer to sell the securities discussed.)

DOUGLAS

JAMES

N.

Louisiana Securities

President.

Douglas,

James

Ling-Altec

President, Berry, Douglas

Alabama &

Wizard Boats of Tennessee, Inc.—

for favoring a particular security.

.

are

Participants and

Their Selections

N.

"HANSEATIC"

Call

Forum

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

...

Traders Say

This Week's

Like Best

forum in which, each week, a

A continuous

Over-the-Counter

If it's

The Security I

Dealers only

Banks, Brokers,

on

page

23

d.'T "

New York 4,11. Y,
SAN

FRANCISCO

Volume 190

Number 5874

.

.

The Commercial and Financial Chronicle

.

(727)

25 Years of SEC

INDEX

Regulation

By HON. JAMES C. SARGENT*

llCHTtllSTHIi

-

Articles and News

Commissioner, Securities and Exchange Commission

Peg#

«

ATO OO MT ANY

Ccmmtssioner Sargsnt d?picts the pre-1929 situation

Inflation in the U. S. Today—What Can You
Do About It?
—Robert T. Patterson

typified by

as

absence of morality, unwarranted
write-ups of assets, overstatement
of

earnings, and general inflation

of

market

prices;

followed

3

•

by

Bank

drastic financial collapse
during the nineteen thirties—and the entry
of the SiEC, He details the Federal
regulation which followed. Cites
the substantia!
build-up in the capital markets

SOME

Cover

Quantius.

Even

___•

__,

.Cover

25 Years of SEC

Regulation—James C. Sargent

if

jf

LIKE

nobody

that

wants

of

occurring since 1950.
Urges public to get in ieuch with SEC "policemen" in case of doubtsa security dealer.
Deplores Commission's budgetary curtailment

11

IT NOT

Mergers: Important Factor in Economic Growth

—Frances W.

I

else

obsolete

WE DO !

yours,

3

about

by

Congress

in

preservation

integrity

face

of

of

of

capital

our

largely

whole

our

increased

capitalistic

markets

work

enforced

as

load.

by the

A Brief

on

the

as

the

SEC,

It

is my

belief that to have

an

the

capital

markets

the

and

agency's participation therein,
must

equity type, i.e. debenture
mon

stock, was
of investment.

the

torical

proper

—Malcolm Bryan

or com-

-

medium

t

his¬

Into

devel¬

this

completely

taken

during
-

few

utes

Act

year

existence.

For

of

1933.

referred to

min¬

rities"

allotted

This has

law.

had

It

its

as

curities to

t

h

the

to

a
&

During those

without

were

operated with¬
of morality,

sense

of

concept

any

without

fairness,

attempt to give
to public purchasers a fair shake
for

any

their money.

tire

Almost

the

en¬

investment banking industry
replete - w i t h
inflationary

was

market
sition

write-ups of assets, acqui¬

of

properties

at

own

investment

note

that

and

assets.

generally

cupied

,

Management

completely

preoc¬

financial

in

maneuvering
essentially upon "upstreaming" subsidiary earnings to
the
top-heavy
parent
holding
company in order to support ex¬
predicated

cessive

dividends

maintain
the

market

holding

rather

than

The

Great

Deflation

value of all

stocks

on

made

wise

a

very

of the

a

and

sound

a

of

proved

to

be

the

30's, as many of you
call, there was complete financial

coliapse.

heavy

course,

own

As

Public

investors simply

and

attach

.

people

would

consider

security,
*An

in

be

it

those

days

who
that a corporate
of the
debt
or

address

by Commissioner Sargent
before
the
Virginia
Bar
Association,
White Sulphur Springs, West
Virginia,
Aug. 7, 1959.

are,

.

of

the

have specialized in

securities

Securities

and

r

,

"

BROAD

Exchange/'

Securities

Program




to Become

Effective,
26

(Editorial)

____Cover

Pacific Uranium

25

Century Chemical,

40

First Lumber

8

_

,_J_.

initial
the
the

attempted

to

distribution

1934

Act

regulate
of

aimed

at

Current

of

Business

Funds

Activity

■

"

.

II

Corp.

'

_•

Wilfred

Observations—A.

Certified Industries*
"Offering circular

7

on

request

29

___________

Singer, Bean

-_i—27

:—

—=—

Our? Reporter

'

-

&

18

.

May_-

mackie,

HA 2-9000

5

-•

—

Governments

on

INC.

40 Exchange Place, N. Y. '

—

16

—

Direct Wires
Our Reporter's Report.

v

38

—

Chicago
Los Angeles

Public Utility Securities——

to

Cleveland

&

Dallas

Philadelphia

San Francisco

St. Louis

the

such /

1934 Act also requires that

Continued

on

page

Schenectady

Glens Falls
Worcester

30

.

Prospective Security Offerings

Securities Salesman's

The Market

.

.

.

Corner

—-1

33

---——■

15

—

and You—By Wallace Streete

16

The

Security I Like Rest____<

2

The

State of Trade and Industry___;

4

DETREX

20
You

and

40

Copyright

The COMMERCIAL and

U.

Reg.

Park

COMPANY,

DANA

B.

Place,

REctor

GEORGE J.

New

York 7,

2-9570

Publishers

N.

Twice

DANA

25,

1942.

Thursday, August 20,

President

city

news,

Other

Chicago

Offices-:

2,

111.

135

1959

etc.).
South

Salle

(Telephone STate

St.,

2*0613).

in

United

Union,

Domini'on

Canada,

of

Countries,
Other

Bank

$45.00

and
per

Note—On
the

La

post

Territories

Pan-American
Other

Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue
market
quotation
records, corporation news, bank -clearings,
and

office

the

Febru¬

at

BOUGHT

—

SOLD

New

Subscription Rates

Every

state

matter

at

Subscriptions
Possessions,

weekp

SEIBERT,

second-class

Y.

MORRISSEY, Editor

Published

ary

as

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

9576

to

CHEMICAL
INDUSTRIES

B. Dana

Company
Reentered

Patent Office

S.

by William

1959

CHRONICLE

-FINANCIAL

Exchange

TELETYPE NY 3-5
Chicago

in' Registration

Securities Now

1868

Stock

26

Thus, the 1834

regulates, as the name im-'
plies, the 14 national securities
exchanges throughout the coun¬
try, such as the New York Stock

The

Securities-...

Railroad

securities,
regulating

trading in securities after

initial distribution/

"I

Electronic Research

8

of the News—Carlisle Bargeron

_

Nashville

23

Teletype NY 1-1825 & 1-4844

Ex¬

and'

ST., NEW YORK 4, N. Y.

Boston

request

on

1933,/

TELEPHONE HAnover 24300
Albany

W. LONG

COMPANY*

Envisaged

Man's Bookshelf

r

"

WILLIAM

25

Europe

News About Banks and Bankers

Spencer Trask & Co*
York

Western

Insurance1 Stocks

Indications

Mutual

25

New

Insurance

From Waihingion Ahead

WILLIAM

Members

-

22

in

mar¬

Commission, the Securi¬
having been administered

ties Act

-•

Overtures Provided by Morgan

Einzig: "London Market Unaffected by Wall Street's Setback"

under the

PREFERRED STOCKS

Founded

HUGH

This is the Act which

the

■

13

„

Bank

acts' to

the

"

■;

Associates

of

The second attempt by the Fed¬
Government to get into the
was

It

Washington

For many years we

Killing

on

___.

Dealer-Broker Invertment Recommendations-

criminal

Exchange,
the
American
Stock
Exchange, the Midwest Stock Ex¬
change, the Pacific Coast Stock
Exchange, and the others located
throughout the country.

the

in

Concern"

Coming Events in .the Investment Fie£d_'__

facts

few

it

Strike

See

Business

w

eral

kets

We

secu-'

money they had
capital markets, putting
savings banks or into the
proverbial mattress. There were

from

what

"Grave

Recovery

Chase Manhattan

Bank

false

or

.

.

The

misrepresenta¬
statements, made by
a
corporation, its ofiicers or agents
in describing its securities.
tion

-'

i.

Regular Features

determina¬

There

civil

which

•

J.F. Reilly & Co., Inc.

ven¬

not.

or

Act

withdrew

Economic

in

which

billion,
During
will re¬

Expresses

Says Daniel P. Loomis--

sold,

$25
worthless.

Anderson

Railroad's

by the Federal Trade Commission *
for its first year. In
contradistinc-,
tion to the Securities Act of

or

CUBIC CORP.
•

::Prospectus
by

pass

knowing -the

his

MANAGEMENT

did

decision

one

value.

to

a;

TV

14

*

Bond Interest Ceiling

Enhanced

the decade from 1919 to 1929, $50
billion worth of
securities
was

50%,

Slesinger___

the

to the merits of

as

making

tions

change

and

12

Guaranty Trust Co. "Survey"

Securities Act be placed in

exchange was $15
billion, or a loss of $74 billion in
that short 2V2-year period.
During

that

Planning—Reuben E.

A Closer Look at Soviet Trade

body,

particular capital

a

position

a

created

of

;

AND

rities was left where it
rightfully
belonged, with the investor who
would by the protective provisions

these

value

of

denying to the regulator the obli¬
gation or ability to determine

Act of 1S34.

By the middle of 1932,

aggregate
on

OWENS YACHT

Common

a

security.
Personally, I'believe the Congress

billion.

stocks

9

to make value

or

of

regulation

-

Act

regulatory

the merits

the New York Stock Exchange as
Of Sept. 1,
1929, aggregate!
$89
total

the

determinations

liabilities

.

Secretary

will

You

give to

securities

upon

needs.

Securities

SEC, the opportunity to

securities

accessibility

company

the

not

to
of

necessary

creating'sound
operating companies. " '

The total

4-6551

8

■

met their

the

upon

Mobilization

*

position to be able to determine
themselves whether the par¬

grossly in¬
prices, and the issuance of whether
excessive amounts of debt securi-, ture was
ties secured by overvalued prop¬ decisions

erties

Economic

for

flated

was

so

ticular securities offered

real

any

and

cIk I

secu¬

rities markets

Babson_

Interest—Hon. Ivy Baker Priest__

facts, financial and
that public investors

otherwise,

could become informed persons in

to

the 1929 crash.

out

basic

period

days the

r

public investors disclose

prior

e

fust

Telephone: WHitehkll
6

basic,

design the requirement that cor¬
porations seeking to sell their se¬

take

back

Dept.

WALL STREET, NEW YORK

often been

like
you

Monetary Standard
2_J_

Investment—Roger W.

the "truth-in-secu-

as

to me, I would

to

as

and the

:!____

__.

Public and Private Savings Programs Have

demoral-

Government to regulate the secu¬
rities markets was the Securities

the

Old Furniture

ized capital picture came the SEC.
first attempt bv the Federal

has

25

Obsolete Securities

5

Cotton Textile Outlook—James L.
Rankin

The

our

Cobleigh___

Entry of the SEC

opment which

place

Sovereign, the Central Bank

one

under¬

stand

a

U.

99

The

"investor's Watchdog".

•understanding of the functions of

Assorted Oils—Ira

on

Concludes

depends

economy

States,

and

$65 00

$68.00

$72.00

per

U.

Members
per

year,

per

8.
of

in

Members

Midwest

Publications

Detroit

Quotation

year.

Record—Monthly,
(Foreign Postage extra).

account

of

the

fluctuations

rate

in

foreign

of
exchange,
remittances
for
subscriptions and
advertisements

must

made

be

Id

New

York

funds.

MQRELAND & GO.

year.

year.

Stock
Stock

Exchange

,

Exchange

1051 Penobscot Building

DETROIT 26, MICH.
DE 75

WOodward 2-3855
Branch

Office

—

Bay

City, Mich.

The Commercial and Financial Chronicle

4

83.7

WILFRED MAY

BY A

to

high valuations and tiny
prevailing in the current
market has
prompted this

The

yields
bull

explanation
"A price 30

from

wag:

one

times earnings

is

justi¬

held

fied

on

of

score

been

second World

the

But, it is contended, "now it is
different." As a result of domestic

basis for

politics

along with international
so
the argument goes,
the dollar's purchasing power has
sensationally fallen, is falling, and
inevitably will continue to fall.
That the dollar will not fall in
the future, we, of course, cannot

and

tension,

flation"

erprise's
present
good
business;
a
ratio

40 on

of

and

'growth';
a

ratio

of

50

'inflation'.''

on

However

the

doubtful

mathematical

of

precision
this

A- Wilfred

be,
great

M*>

may

the

of

extent

"infla¬

defend the giddy pricing

tion" to

War.

days—alongside much high¬
er yields on bonds—is surely evi¬
dent.
Hence
it
behooves
the
investor to take another look, and
a
realistic one, at the prevalent
bland
assumption of continuing

lar

predict. Perhaps it may even some
day get into a one-way decline.
But we would point out that the

popular concept in
of

citation

the

these

ing,

which a cur¬

decline (rang¬
from the creeping to the gal¬
continuing

rently

loping tempo) is assumed, repre¬
sents the popular current illusion
of the investment

community.

Facts

The

Wholesale

The

Price

as

chosen.

is

flation

is

Nor

of the investor, or

concern

particular
the

definitions

or

in¬
the

it
of this

to

interpret

fiscal

results of

column,

economic

of

of credit infla¬
re-stimulated
by
this

deficit financing,
tion

as

week's
action

term

negative
on

interest

facets

of

Congressional

Treasury Bond's

rate,

of
the money

or

expanding

longother

stationary
ever
Since "Korea" in 1950, the
shows a "net" rise of only

remained

has

since.
index

is

3%It

seems

food

not generally
prices today

average,
cheaper
year ago.

the

on

are,

be

to

that

than they were a

this year, the various
of sensitive commodities

During
indexes

the

in

centered

now

market itself.

stock

HINDSIGHT VERSUS

ual

stock

piled

valid.
The

dollar's

two-way
course
purchasing

of

the

power

throughout the country's financial
,

Consumer

the

history,

has

been

cited.

Major

Price Index,

com¬

the U. S. Department
Labor, has risen by only 2/10ths
of 1%; wholesale prices, embrac¬
ing all commodities rose by less
than 1/1 Oth of 1%. The purchasing
by

of

of the dollar, as measured
by wholesale prices has declined

power

by only

one

RETAIL

Industry

TRADE

FOOD

PRICE

AUTO

PRODUCTION

BUSINESS

INDEX

FAILURES

COMMODITY PRICE
INDEX

decimal point, from

ket

the mar¬
above the
summit, is shown. The rep¬
of

resurgence

80%

to

averages

chosen

issues

tables,

two

issues that
handsomely,"

other

stocks

15

investors

com¬

one

investors

"treated
the

and

"plus"
appreciation
of 716%; while the "minus" group
shows a concurrent capital loss of
poorly."

The

47%.

Interesting is the contradictory
action

industries.

within

ample,

in the

even

rails:

now-lowly

For

sions, and

the
New

whereas

stock

split is stability of market
performance which it supposedly
supplies. For some new and in¬

teresting

dat/a

this

on

we

axe

again indebted to the "Exchange"

magazine, as published in the July
issue, showing the relation of the
size of a company's stock capitali¬
zation

it

to

its market

the

fluctuations.

Stock

Exchange

that the implications
of this study by its institutional
publication seems to support the
anti-split position.
The 20 Big Board issues with

contained in the August

are

INDUSTRIAL PRODUCTION—Declined 1% in July to a pre¬

liminary figure of 153% of the 1947-49 average, two points below
of 155.
The decline reflected the impact of the
beginning on July 15 as activity in most other durable
goods industries increased further and output of nondurable goods
rose to a new peak.
Utility output was maintained at 267% of the
the

level

June

steel strike

{

mill

operations in July were 44% of capacity as com¬
pared w ith 90 in June. Work stoppages in the second half of July
and the first half of August reduced mill operations to 12%
of

levels,
as

uOutput of consumer durable goods reached a new peak
production of autos and television increased further and furni¬

ture

output

highest number of shares out¬
standing have in the last 25 years
recorded

twice

as

an

average

great

as

2,0

maintained

was

price range
other issues

each with less than

360,000 shares
outstanding.
Typical of the wide-swingers is

however, declined 5%

reflecting sharp cutbacks in iron ore and

CONSTRUCTION—Private nonfarm dwelling unils started

July changed little at
million

tinued

units.
at

an

annual

rate

of

new

construction

Gains shown in commercial and industrial build¬
ing and highway construction slightly exceeded declines in public
utility and residential construction.
EMPLOYMENT

—

Employment

ments increased further in

service,

ment,

nonagricultural

establish¬

trade

and

reached

new

highs.

Average

weekly

earnings of factory employees declined somewhat but were 8%
larger than a year earlier. Unemployment decreased 240,000 to
3.7 million and was at a seasonally adjusted rate of 5.1% of the
labor force.

DISTRIBUTION—Retail sales in July

continued at the record

seasonally adjusted rate reached in May and were 9% above a year
Sales

ago.

department

at

decline in July

stores

and early August.

showed a less than seasonal
Sales at auto outlets and in a

number of other lines either declined somewhat or

changed little

inGJuly from earlier advanced rates.

Dealer stocks of autos in¬
creased to a new high in July, partly reflecting anticipated model
changeover curtailments. At department stores, new merchandise
orders were sharply above the midyear levels in other recent years

and stocks showed

some

increase.

AGRICULTURE—Another^ large harvest is in prospect. Crop
production this year was officially forecast as of Aug. 1 to be only
3% smaller than last year's record and 8% larger than for any
other year.
harvest

was

While
a decrease of about one-fourth in the wheat
indicated, the corn crop was forecast to be 10%

larger and the cotton crop 29% larger than last year.
PRICES—Wholesale

COMMODITY

little change from

generally showed
Markets for copper,

prices

mid-July to mid-August.

rubber, and hides strengthened again after a period of weakness.
Textile prices increased further, although raw cotton prices de-chned
some

also

as

new

down

were

credit

effective. Prices of
reduced. Livestock prices

Federal support levels became

finished consumer products were

BANK

somewhat further at midyear.

CREDIT

increased

in

AND

July.

RESERVES—Total

Loans showed further

commercial bank

rapid expansion

holdings of U. S. Government securities rose slightly. The
seasonally adjusted money supply increased $1.4 billion following
little change in May and June, and at the end of July was 3J/2%

and

larger than

a

year

earlier.

borrowings from the Federal Reserve averaged
$980 million and excess reserves $480 million in the four weeks
Member bank

ending Aug. 12. Over the period reserves were absorbed princi¬
pally by further gold outflow, a build-up in Treasury deposits at
ESTABLISHED

STATE AND

I894E

MUNICIPAL BONDS

CORPORATE BONDS

low-capitalization

—low market fluctuation
group

in

July, before the onset of the steel strike,

by 164,000 to a new peak of 52.6 million—110,000 above the previ¬
ous high two years earlier.
Employment in state and local govern¬

(282,668,850), with a 5-year
price swing of 180% above its low.
the

is

LOCAL STOCKS

Interstate Department Stores with

only 325,000 shares.
Regarding relative performance,
market-wise the Study shows that

Dominick
Members New

&

Dominick

York, American & Toronto Stock Exchanges

14 WALL STREET




v

NEW YORK

the advances
have

been

broad

in the

since the 1958 close

more
case

numerous

of the

and

low-cap¬

italized than the large-share

RHODES-HAVERTY BLDG.
WALNUT 0316

"Source:

of

Survey

Commerce.

of

Current

ATLANTA 1, GEORGIA

com¬

panies.

Dept.

in

annual rate of 1.35
put in place con¬
of nearly $55 billion, somewhat below

seasonally adjusted

a

The value

the March peak.

shares

of

record levels.

coal because of the steel strike.

General Motors, which tops
all
companies in the number of listed

Typical

at

Widespread gains continued' in the textile, apparel, rubber,
chemical products industries in July.
Output of minerals,

and

happens

the

OF INVESTMENT SECURITIES

the accompanying data,

issue of the Federal Reserve Bulletin:

ex¬

of

case

aggressively stands on the
pro-split side, through strong sug¬
gestion as well as endorsement,

UNDERWRITERS AND DISTRIBUTORS

commodity prices changed little. Bank credit
Interest rates declined slightly. These conclu¬

expanded further.

"treated

which

shows capital

Although

Correspondents inprincipal cities

beginning

Consumer incomes and buying were generally main¬

tained and wholesale

di¬

are

itself

throughout the United States and Canada

Industrial activity was curtailed by the steel strike
in mid-July.

study published

a

(rubber, copper, lead, zinc, coffee, York
Central, Illinois Central and
sugar,
cotton),
responding
to Canadian Pacific are among the
appropriate in this
evidences
of great increases in
substantial
space now to participate in the
losers, Chesapeake &
world-wide productive
capacity, Ohio has
controversy
being
waged
over
gained 88% and South¬
have
shown
almost
complete
ern Railway
the cause of price rises—whether
124%.
stability.
"cost pushed," "wage pushed," or
Among the losers which some
Lately
too,
cotton
futures,
re¬
"administered."
Nor
would
be
of us vets can recall as particular
relevant
to
this
consideration a sponding to excellent crop pros¬ market
favorites,
are
Baldwin
have
been
trendless.
Like¬
pects,
repeated citation of the actual
Locomotive,
American Locomo¬
wise improved soybean crop pros¬
record
whereby we have dem¬
tive,
Western
Union,
Brooklyn
onstrated
the
invalidity of the pects are keeping oil futures on Edison, and R. H. Macy.
a steady level. Sugar futures have
blandly assumed premise that the
Surely, Blue Chip performance
been weak; and copper prices, re¬
common
stock
automatically
is helped by hindsight!
flecting a weak statistical position
serves
as
a
reliable
protection
have even in the face of the strike AN ISSUE'S SIZE AND ITS
against a decline in the purchas¬
prospects, been
revealing great
MARKET BEHAVIOR
ing power of the dollar.
instability.
One of the principal justifica¬
Rather, we are confining this
Over the past 12-month interval, tions advanced on behalf of the
discussion here to the single basic

whether the generally
premise of a constantly
depreciating
(not
appreciating)
dollar to be hedged
against, is

OUTPUT

CARLOADINGS

demonstrated
capacity.
Production of most nonferrous metals and building
in the cur¬
materials increased in July. In the second week of August, how¬
rent
(August) issue of the "Ex¬
ever, copper production was cut sharply by work stoppages.
change" Magazine. The market
Production of finished durable goods continued to expand in
performance of 30 important stock
July. Output of trucks and farm machinery was at record rates
issues, from March 1927, carrying
and production in most other industrial and commercial machinery
through the 1929 Crash and the
industries was back to the prerecession highs of early 1957. Air¬
succeeding Depression's demoli- '
craft and other ordnance lines, however, were still below 1957
tion
of
prices, and on to the
strikingly

is

term

in

Neither is it

assumed

Trade and

Steel

action of individ¬
issues over
the long-

The divergent

supply.

question

The State of

1947-49 average.

FORESIGHT

group

realized

PRODUCTION

ELECTRIC

of the common stock

use

its postwar rise,

economic

tive

STEEL

a

uncertain;
(2) much of the assumed "in¬

1929

(Bureau of Labor

as

inflation hedge is

an

eventual

Index

element

depreciation

-

Statistics), after
resentative
declined in 1948vided into
Irrelevant to the interest of the
49, moved higher in 1950, fell in
investor is which of the alterna¬
prising
15
1953, rallied in early 1958, and

inflation.

>

Thursday, August 20, 1959

.

confined

the

t

e n

Daily

Commodity Prices now stands at
depreciation 86.4 versus 86.5 a week ago and
to 87.5 a year ago. The Dow-Jones
wartime periods. Postwar stages Average of Spot Commodity Prices
of dollar appreciation have been is
below
last
year.
Individual
extended. After 1920 the cost of commodity
comparisons with a
living fell and failed to re-attain year ago show declines of 23% in
that year's level before the pas¬ coffee, 33% in lard, 39% in hogs,
sage of a
quarter of a century, and 4% in corn.
as
an
aftermath, in 1946, of a
Thus, we see that (1) the dol¬

dollar
mostly

of

intervals

INFLATION?

have

:

.

consumer

been 94.4-84.0). The
Index of
Wholesale

has

range

BLS

WHAT

by

and

83.6;

prices, from 80.9 to 80.6.*
The BLS spot price commodity
index (of 22 commodities) during
the week ended Aug. 13 fell by
0.3%
to
86.6%
(the
1953-1959

Observations...

"

.

(728)

Business

3*

LONG

DISTANCE 421

Volume 190

Number

5874

.

.

The Commercial and

.

Financial Chronicle

(729)
the Reserve
Banks, and a decrease in Reserve Bank float. Reserves
were

supplied by currency inflow and Federal Reserve
of U. S. Government securities.

declined

A Brief

purchases

Common stock prices advanced to
beginning of August and then declined 3%.

Nationwide Bank Clearings 4.3%
Bank
a

year

based

clearings

this

week

show

a

increase

an

with

compared

Preliminary figures compiled by the "Chronicle,"
telegraphic advices from the chief cities of the country,

ago.

on

indicate that for the week ended
Saturday, Aug. 15, clearings from
all cities of the United States from which
it is possible to obtain
weekly clearings will be 4.3% above those for tne corresponding
week

last

Our

Containing

T

,,

In

the recent

Week Ended Aug. 15—

1959

Chicago
Philadelphia
Boston
For

the

1953

$11,197,043,927
1,321,673,688
1,061,000,000
712,806,442

+17.8
6.2

+

9.1

+

detailed summary of bank
clearings in U. S. A. refer to
Statistical Edition of the
a

"Chronicle," issued Mondays.

this week's summary, refer to
page 47 of the Aug.

For

little

b

ance.

80-Day Injunction Seen Solving Steel Strike Impasse
the

of

strike

coming

a

enters

its

pinch

in

steel

supply

sixth

the

Even

considering

these

signs,

"The

Iron

Age"

reports

few

of real distress on the part of steel users.
It reports many
instances of inventories ranging as far ahead as 60
days.
All in all, it is said, from the steel users'
viewpoint "this was
the best-planned steel strike in
history." Most of them feared a
bad impasse, did a good job of building inventories.
cases

On
out

of

the
the

negotiation front,
strike

impasse

the publication

now

to

appears

the

said

be

only

invocation

way

of

the

Taft-Hartley 80-da3' cooling off period.
injunction

by all sides—management, labor and the government. And unless
present attitudes change, such a respite would be followed by
another shutdown just before Christmas.

Steel Inventories
Most steel
tion

users

Termed

Adequate Until October

have inventories adequate for normal opera¬

until

early October, "Steel,"
ported Aug. 17.
Users'

when

the

stocks

at

were

strike began,

a

the metalworking weekly,

all-time

an

reassessment

high

of

shows.

26

million

Since

then,

re¬

tons
users

have been getting

about 500,000 tons a week from these sources:
250,000 from mills that are still operating; 150,000 from service
centers; 100,000 from foreign producers.

+
Steel is being used at a weekly rate of 1.5* million tons, so
consumption has exceeded receipts b„y one million tons a week.
Inventories

are

down to

21

million

tons.

A

supply of 14 million
tons would probably meet minimum
working requirements, so
today's inventory has a seven-week surplus.
Chances

for

early settlement of the steel strike look as
bleak as at any time since negotiations started May 5, ^'Steel" said.
The strike currently is 34 days old—the duration of the 1956
stoppage. With the lack of progress to date, this walkout could

easily

set

an

postwar

a

record

in

marathon from June 2 through

length, surpassing
July 26, 1952.
-

the

55-day

Strike losses through Aug. 17 amount to $1,768,600,000, "Steel"
said. It estimated lost steelworkers' wages at $343,600,000, lost sales
at $1,008,000,000, other losses (overhead, depreciation, and salaries
of nonproduction workers

in steel) at $192,000,000, and tax losses
Continued

on

page

bal¬
now

tnings

Ira

in

28

We take

KENNEDY

now

associated with

SALES

us as

id

not

of

the

New

York

Stock

eager

so

a
veneiuew

ana

taxations

MIAMI

•

DETROIT

GENEVA

•

•

on

•
•

BEVERLY HILLS
AND OTHER CITIES

100




YEARS

OF

SERVICE

broad

runs

resourceful

a

tion

continue

$5 a
(against $3.85 last
Its dividend should be inearn

1959

creased from the present $2 rate
and the ComPanY should continue
J? grow more rapidly than a number 01 the maiors- There ar? 50
barrels in reserves for each share
2* common. Common sells around

Q2

to

patient

farsighted investors
quite unique equity.
Phillips

condi-

attract

and

has'

Petroleum

this

to

grown

remarkably and offers
400

a broad
phases of the oil

of all

coverage

business.
should

common

management,
increasing
cash

acreage,

flow, and sturdy financial

Vast reserves

million

barrels),

(over

and

1,and

smart

expanding marketing,

major

positions in natural gas and petro-

chemicals provide a broad horizon for continued expansion of
earning power. Phillips common
earned

$2.45

share

a

in

1958.

Earnings should rise to $3

this

year and on that basis the stock at

C0ndUCIV6 friend"6 ■" $1'7° Sh°Uld make

t0™estm*n*sere*m'on

,

friendsOhio

+

Oil

has

taken

on

a

more

a,s one.of

m«*y

nut

to impose retroactive
oil companies.

reach $2.85.

out
the world for sale of its crude Ohio offers
produced in the Eastern Hemis- nrotopHnn
phere
Texaco may approach $6 a share

Obvioimlv
made

consists of 5,574,356
common
shares«.piiina
listedafon
N. Y. S. E. and
22%
"

the indus-

1XL has i,»/J,uuu tee mineral

on

«
fidence, conclude that

t™Tae

a

in

trend

rising

and that

corner

earning

power

be expected for a number of
companies
We propose to commay

ment

on

the

v.Qc

StL

oil

v,p0n

list

wlfh

tro IhS
thei? divi
their dlV1'

likelv
mav

increase

may increase

few such,'

a

forthwith.

start

Oil

Shamrock

with

2 With

s

_

Of these

acres.

are

acres

■

in

the

1,500,000
Basin

Delaware

.

Western part of Texas,

area *n

are : now
—u

tested

deeper

in

wells

Coast

with

Wool-

^,—

Stock Exchange.

With May & Co.

forma-

have

0

A Street, members of the Pacific

•

Shallow

connected

^—.—

r/+ Currier & Carlsen Inc., 233

? section believed to contain fabulous stores of oil but so far only
tion.

••

SAN DIEGO, Calif. — Andrew
K. Cline and Garrison E. Murphy
<~une ana ^rnson n,. lviurpny

mineral

about

Woolrych Currier

(Specia.' to The Financial Chronicle)

nnw

slightly
We'll

ntWrmt

nn

cover

so

don't,

we

—

Thl

whiJh

an

balance, see the
makings
of a boom in oil shares,
inan.Ai.sa
at least we can, with some conIf

paving SI 60

t® seie^t

ever

fu,®
ea?t

that, in a number of develop the oil and gas resources
increase in gasoline on the land holdings of Texas
prices has been possible.
Pacific Land Trust. Capitalization
line

areas,

to

s°

price cut recently posted in that
A much less heralded oil enterState.
Refinery runs have been prise is the TXL Oil Corporation,
cut back and inventories brought created
in
1954 to explore and
into

At 41

sutetaAtFaTdo^ide

protection and legitimate hope x—
for
sizable price advance over time.

we have adjusted this year, against $5.31 last
year,
well
to
the
immediate and it doesn't take too much impetroleum over-supply by redue- agination to rate Texaco as a $100
tion of the days of production in stockIt has an earning's growth
Texas, and by a 20c per barrel rate of around 11% a year.

been

(Special to The Financial Chronicle)

Corporation. Here's a live- m0st successful in the region bePORTLAND, Oreg. — Robert
ly, well managed, producing and jng quite cheap to drill and de- E. Williams has becomfe connected
distributing
company
serving a Hvering sweet, high gravity oil.
with May & Co., 618 Southwest
market area of 8 states, fanning
There is
no
doubt that TXL Yamhill Street,
out
from
the Texas
Panhandle.
t mmmm, m m mm i m% mmm.' mm % w mm: m' - m ? mm « mm. s mm
Shamrock
is
an
aggressive and
& Gas

balanced

At
the
sales of

organization.
level its

merchandising

rels;

the

of

24

million

has

company

natural

to

gas

bar¬

big
well—
a

as

was

of

one

creased.
of

at

Shamrock

able

common

which
There

with

might
also

is

$16 ¥2 million 5J/4%
$36

verts"

has been dissolved

per

sell

till

1982

share.
at

122

as

of

August 14, 1959
m

'Wwss///.fSA/Af//ys.'sy.v.''Vss.vss.-yss.fAy/.y/.-ysW.-v.w

yy;y/y///i'rtyy>y;y/£y//yyss:y/s//jy^

We

are

pleased to
of

a

announce

the formation

partnership

very

a

an

dividend,

i

CO.

earnings Sham¬

All of which would appear

make

&

'it

trillion cubic feet.

1958,

report

GOLKIN

gas are

above

at

and

1958).
Exchanges

common pays no dividends

but

while

to

for

lo-

and

for future

reserves

15,000 foot well in West Texas,
brought
into
lush
production,
would spotlight this stock. Mean-

Domestically

convertible

OVER

maTno

expect Shamrock to earn about
$2.90 per share (against $2.62 in

CHICAGO

PARIS

oil

increase. The uptrend
continues this year and we would

Exchange and other leading

has

quite

to

72 WALL STREET, NEW YORK 5, N. Y. BO 9-8420
•

that

suggest

to

tractive at around 42

PITTSBURGH

about

up

select group of oil companies

HENTZ
Members

re-

a,

It

Texaco at 85 paying $2.60 ranks

In the matter of

DEPARTMENT

with
oil.

regions

new

not for some time to
as
a
call on future oil
it has plenty of romance. Just one

marketing organization, through-

taxe,

rock, in

INSTITUTIONAL

We will drill

thVtafe'lnVve^zSI

tne

about 1.6

our

drilling has continued

up

nearer

MANAGER
of

for

re¬

two

most attractive of dynamic look in the past two
i. i
ink ™
or
world wide
the majors. It is now the largest years. Aggressive drilling (with
in
over
suddTv'buT we Producer in the U. S. and second two associates) in Libya has reselmto be getting the'situation largest in Canada. It is the only suited in significant and major
in?r hotter eouilibrium We're ComPany with service stations in discoveries that may delineate a
Jpltinetibe ?ess den end a nto n 48 3tates; and its reserves are well vast new oil field; and the recent
S calar areas For example Spread out and balanced over most acquisition of Aurora Gasoline Co.
whh
rising new' maior fields hi' of
the Producing areas of the greatly enlarges refining capacity
7'Kk fi"ig iTJrio much
world North and South America, and retail distribution. 1958 earntobEuroDear^ markets1"the sheiks Arabia and Sumatra. Through a ings were $2.45 per share. This
If the Middle
Mlddle+ast
hal£ '?tefest ln Caltex Texaco has year we would expect the net to
ot
n^ast can no longer
10
g
Thi«

reserve

is

an

of 5%.
9% mil-

1958.

over

timated

V.

year
over

15% above
last year; and in production, by
bringing in new wells, Shamrock
is this year boosting daily produc¬
tion
by 20% to 6,000 barrels a
day.
Present oil reserves are es¬

pleasure in announcing that

WALTER

de-

show

tb

wells,

51,000

1959,

2 500

last

a™ay!

barrels

lion

re-

increases in

likely

over

oil

domestic

consuming

are

company
nose

past

may

come

able

share

Cobleigh

half

first

and

auoears

increase
We

althouSh and

added substantially to its reserves
in the past five years.
Since it is

year).

of

"Clover Leaf"

MR.

U.

to

1958

over

TXL

Company

relaxed.

different.

mand

OU

65% owned by Royal Dutch/Shell
Group is a splendidly integrated

Shell

number

Set

She11

the

years.

on

be-

are

ginning

be

This is in spite of bitter opposition to use of the T-H

on

But

increase

SLfT
lnortWm=v
restrictions
import may hf
be

ntial

a

norts show heartening

increasing as
"The Iron Age."

are

week, according to
end of
the month, steel inventories will
dip -below
normal and by
mid-September, steel shortgages will begin to hurt,
the national
metalworking weekly predicts.
The magazine
reports these indications- of supply trouble:
(1) A few small steel users are already in serious
difficulty; (2)
spot shortages have developed for several products;
(3) premium
prices have returned to the market; (4) the old steel broker has
reappeared: and (5) foreign steel prices, normally $30 to
$40
below U. S. mill prices, are now equal to—or above—domestic
mill price.
Before

a

of

been
t

not

supply but 65% of its reit can always use such
increased domestic production as
it may achieve; and in the background it can call upon its oil rich
parents for substantial imports at

trusts

sellers

A

Signs

s

does

^ years*

finery

invest¬

have
s u

to

and

which

markable

leader-

ship,

price

a

American

mar¬

ket

look

17 issue.

nf

section of

oil stocks have

ment

2.2

+

on

that, for the
past two years,

major

%

$10,953,589,558
1,121,533,353
999,000,000
653,556,487

the

but

open

has

Texas

in

cate impressive

is

done

to

in

days

income

years,

comment

merit higher price quotations.

aitiiwiA

attained loeftn

number

New York

the oil industry, together with

on

dynamic sweep of

???g2?
.J
the
list.
Fact

follows:

at

The reduction of allowable

ware.

producing

.

supply

preliminary totals stand

few notes

a

certain oil shares that
may

on

$23,065,393,650
against $22,111,683,517 for the same week in 1958. Our
comparative
summary for some of the principal money centers for the week

year.

ing

Get Rich Buying Stocks'

to

an important swath of
bearing real estate, command¬
an acreage larger than Dela¬

oil

duced

verv^ittlo

Above 1958 Week

sits astride

Assorted Oils

on

5

'

\

By DR. IRA U. COBLEIGH

peak at the

new

\

Enterprise Economist and Author of "How

slightly from peaks reached in

early July.

'

.

SECURITY MARKETS—Yields on all marketable
Treasury
issues have been stable to slightly lower during the
past month.
On Aug. 5 the
Treasury announced additional cash borrowing of
$1.7 billion in the bill market. Yields on corporate and state and
local government bonds

:

'

•

be
an

NEW YORK 4, N. Y.

Telephone: WHitehall 4-4567

Teletype: NY 1-1658

in¬

MILTON J. BOMBACK

I

I
i

JAMES G. BURKE
k

SAUL GOLKIN

GEORGE J. GOLKIN

Branch Office: C. V. Converse, Manager

I

common

These
and

23 BROAD STREET

issue

debentures

into

Members New York Stock Exchange

at¬

$1.60

a

Golkiii, Boniback & Co.

are

"con¬
espe¬

cially interesting because of the
long term conversion privilege at

Commonwealth

Building, Allentown, Penn.

Telephone: HEmlock 3-3216

i?

I
m

Financial Chronicle

The Commercial and

6

.

.

Thursday, August 20, 1950

.

(730)

The Sovereign,

the Central Bank

President, Federal Reserve

individual

an

not

of^ioney.

declares
law, for

usually"

He endorsingly cites Fed.'s "bills

prudent delegation of independent central banking
power by a not always prudent government; believes we will become
a
good deal sicker before fundamental monetary reform becomes
politically acceptable; and hopes we do not lose our freedoms in
the interim which would make this type of discussion unnecessary.
He notes neither the gold standard, nor our present bond standard,
nor the proposed constant depreciation standard have found accept¬
ance.
He makes clear a free society means monetary reform and
policy; praises the

greatest problem is whether or

says our

Perhaps I return to a

few im¬

portant questions, some of them
old,
because
they trouble me,
because
they are being debated
anew

in

our

time,

and

bethe

cause

largely

in

field

of

the

value

in

f f

i

terms

of

tion

again, inwith

and

Bryan

Malcolm

sistently
a

weight of authority,

considerable

important public purpose
is served by the fact that the Fed¬
eral
Reserve
System,
with
its

that

no

broad

in law and practice
from the
government's ordinary
administrative
appartus.
This
general thesis is presented in vari¬
ous
forms, but the basic idea is
that
the
"independence" of the

System is out-of-date and
that
country
would
be
better

the

served

by

control

form of unified
both monetary and

some

over

fiscal affairs.

that

the

control

over

the

standard is a function
of
the
sovereign,
specifically
placed in the Congress by our
Constitution, we have a series of
very real and fundamental ques¬
tions, only one of which I will
discuss at this time. Why should
the
sovereign
delegate such a
power as the right to create and
extinguish money, a power so

monetary

basic

to

nomic

the

course,

welfare

society and

doubtful

a

dent

The

of

our

our

eco¬

people?

begin by noting that the
Federal Reserve System, though
it is not the exclusive repository
of central banking powers in the
United States, is the American
central banking organization. The
word "central" in this usage refers
to the fact that the Reserve Sys¬
tem has an essential power, basic
to any modern conception of cen¬
tral banking. The word "central"
us

that

Systein

has

the

Federal

Reserve

general line of the answer

frequently act on behalf of his
principal more effectively, more
efficiently, and more wisely than
the
principal
himself.
This
thought, perhaps, is particularly
pertinent when the principal is
the sovereign state and the agent

is

institution that

an

ioned

so

have

to

as

can

be fash¬

greater defi¬

continuity of ef¬

fort, specialization of knowledge,
and, even, concern with the longterm public interest than may be
found in the often temporary and

The

of the state,
abstraction. The
the powers of
sovereignty is in the hands of men
—agents if you will—who at any
given moment find themselves the
after

sovereignty

all,

actual

is

an

exercise

of

controllers of the state's apparatus
and the trustees of its

sovereignty.
delegation of sovereign pow¬

The

to

central

bank, thus, is a
sovereign's agent. In
the light of such a fact, it has
seemed
possible to establish an
a

for the control of

agency

central

only within the lim¬

iting framework of reserves that
are largely
supplied by the Fed¬
eral Reserve System. In my opin¬
ion, it is this power to create and
extinguish money, more particu¬
larly bank reserves, that makes
address

by Mr. Bryan before the
Conference
on
United
States

Monetary Policy co-sponsored by Duke
University and the American Assembly
of Columbia
University, Durham, N. C.
The
views
expressed are personal, not
official, and are not to be attributed to
tLe Federal

Reserve System.




of Govemme nt,
surely not in the sense that it can
exercise
a
power
of
coercion
independent

against Government. I do not be¬
lieve that anyone in the Federal
Reserve

that

sures

sovereign,

effecting
better

than

the

constant pres¬

impinge
on
the
has
the
promise
of
more considered and

a

balanced

would

monetary

otherwise

policy

prevail.

'

Some

Insulation

Against

Imprudence
It has

always seemed to

the Federal Reserve

satisfactorily

me

that

System is

an

designed

to

effect such consideration and bal¬

and
pi +

repeatedly.

rnpUnm'ncf anrl

a

poling

We

save

of

our

pynont

fmm

us

own

of the

and

ap¬

Reserve

of

the

several

Federal

Banks,

having equally
.diverse backgrounds and experi¬
ence; its Federal Advisory Coun¬
cil; its responsibility to the Con¬
gress;
and

the clear admonition in law

history that the System exists
public interest; the enor¬
mous apparatus of economic intel¬
in

the

ooritral

bank

the consequences

the
provide a dra¬
for the discus¬

Third, the independence of
System

to
point

serves

focal

herence

of

sion that it is
that

submit

a

could

after

tionand after the

public

debate

extensive

the

monetary

pfovpking the action.
Fifth, and lastly, the System's

independence constitutes a pow¬
erful Congressional admonition to
agents of the sovereign, in¬

cluding the legislative agent, that
they

responsi¬

take a

should

too

ble view of monetary problems.

All

and

considerations,

these

others, indicate
the desirability of having a cen¬
tral
bank
that
is
legally
and
doubtless

many

structurally
of

bureau

be

some

and
allowing it

of

undesirability

to

a

Government department

a

the

than

more

closely integrated to
other ever-changing and al¬
too

hard-pressed executive
trustee
of
the
sovereign.
They
ways

to

seem

to

me

sufficient

be

rea¬

the

independence of the
Federal Reserve System to be
for

sons

cherished
citizens.
should

defended

and

these

In

think

sub

by

all

matters

we

specie

nor

formality. I

independence

of

the

The wisdom of

the

vise

and

to

admonish

subordinate

mere

acts

bank

central

morally in

(c)

courageously, and

long-run public interest. The
of

tests

wisdom,

morality

are

courage,

They

severe.

and
can

hardly be met if the central bank
assumes,

that

in

even

the

democracy,

a

apparent interest of the

not

as

wheedling the boss, but as an in¬
having a limited, law¬
fully recognized, and greatly im¬
portant responsibility, in its own
sphere, except for the legislative
branch,
largely
co-equal
with
other

trustees

of

Government

The importance of this

re¬

lationship is subtle but profound
any
reflective person will

—as

own

career

when
and

casions when he
a

subordinate
the

reviews

his

thinks of the

oc¬

he

has

spoken from

clerical position
occasions when he has

as

an

or

equal.

The

differ¬

is important, I think, to the
long-run public interest.

ence

Second, the placing of the ,System's controlling Board in Wash¬
ington and the strategic location
of the outlying Reserve Banks and
Branches can hardly fail to keep
the
System alive to current

thought, including trends

in

to

as

po¬

institution

an

our

founders of

the

that

in

our

understanding

too

were

so¬

make.
n

a

stitution

power.

state

country

officeholder

appealed

long

eco¬

meas¬

still

and

the

of

wreckage

systems, so notable in
generations and so cor¬
rosive of the social, political, and
economic fabric of society, raises
monetary
our

own

the

gravest

questions. It
the

true

that

our

in

monetary

history

be
of
central

may

stage

present
a

bank, by whatever name or how¬
ever organized, is a practical nec¬
essity.
It is by
however, that a

clear,

means

no

free society can
permanently survive a monetary
system, whether it be managed—
or, as so often happens, manipu¬
lated—by the sovereign, who is
aiwavs necessitous, or whether it
be managed by any creature of
the sovereign, however, responsi¬
ble.
Thoughtful men can hardly
failed

have

notice

to

the

that

spoliation of peoples in our day
by inflationary thievery, disguised
with Machiavellian slyness as
necessity

doubt¬

has

welfare,

or

far the lootings

exceeded by

less

greatest conquer¬

by the world's
ors.

A

great many thoughtful men.
recently been saying, in ef¬

fect, that the monetary arrange¬
ments of a free society will ul¬

men.

tion

tem

some

rule of law rather than by rule

whether the
(a) wisely, (b)

ciety is always identical with the
'interest of the people—an assump¬

all, it does give the Sys¬
important power to ad¬

to offset these

used

tested in the light of

sentiment.

First of

econ¬

delegating sovereign powers to a
central bank must finally be

System, even though it is not
absolute, is a good deal more than
a
genuflection
to
an
outworn
Merits of Independence

an

supplies, which are at least
of economic events,

be

Nevertheless,

have

I want to close this section with

observations.

what¬

economy,

great virtues, is

own.

my

aeterni-

tatis.

two

free

appeals to many minds, including

except

issue

other

un¬

as

monetary system by

a

A

has

ure

most

of

mone¬

almost

am

nomic fluctuations in

careful considera-

most

the

destroyed

be

not

I

about the longmanaged

a cause

could

to the
In the
of events, in fact,

ordinary course

about

partly

highest law-making body.
it

easy

money

resort

without

a

that has at least one distaste¬
ful
constant:
A continually
fluctuating level of activity. The
idea
that
the
management
of

de¬

be

system,

its

am

omy

stroyed in a fit of angry disagree¬
ment over its policies.
The Sys¬
tem could not be destroyed,

the

mere

the

could

System

tary

ever

I
of

as

results

formula.

independence.
Fourth, it is possible to imagine
administration
so
powerful
the

im¬

some

through ad-,
original design.

the

to

Uneasy
run

an

that

supposedly
founda¬

a

from

least in the short run,

.

the independence

absolute often leads to the conclu¬

pointed members of the Boards of spoken
Directors

a

iUiTunn*

nn

System is neither final

and

elected

pmjn+^rinverri^m*?

follv.

fact that

The

as

B">eu

under

ennnnf

fn

we,

f'P^al

of

should

wo

if

For,

fhnncfhtlpcsW

ivpns.

experience;

its

my

be, in any final sense, in¬
dependent of the sovereign. Such
a statement is rather a truism, but
it seems worth making, insistently

understand

in

mind

cannot

monetary policy. Its ro¬
central Board, with longterm
appointments
and
with a
wide diversity of background and
ance

will

System

saying that the System is not and

bank

nism and from

tating

•An

Government bureau, could

mere

more

it

Regional

money—

that, being one or
steps
removed
from
a
merely current political opportu¬

a

agency

so

a

erratic administration of the state.

lending and investing activities, to
expand or contract the supply of
funds in the hands of the public,
do

sov¬

be independent of its
co-existent
and
more
powerful
creator.
And
yet, if
a
central
bank does not possess a substan¬
tial
measure
of
independence,
there is little point in having a
central bank.
Any other agency,
can

can

the * power,

within
very broad limits, to increase and
to decrease the supply of money.
Although the commercial banking
system has the power, through its

can

his

powerful and

creature of the

the

which is

ereign,

principal can devise a pru¬
delegation of his powers.

dent

en¬

Similarly, we have the
of how a central bank,

fact problem

the

by

■

is

both all

is

Creator

choice of the

means

theology. There has always
difficult matter of de¬

all seeing.

therefore, of how an often impru¬

ers

Let

Govern¬

the

been

repository of monetary wisdom
and
prudence, as the monetary
history of the world amply illus¬
trates. We have the neat problem,

nition of purpose,

Since it must be conceded at the
outset

to the
more

even

money,

reserve

both

apart

of

department.

aammistfative

on

tion, would have to face in the
future, as in the past, a variety of
contingencies in which the public
interest might suffer greatly, at

appurtenance of an

a mere

resting
evolving

or

pelling social and economic tradi¬

c

and ex¬ probably lies in the idea that an probably do as well.
is set agent—as we so often observe in
The truth is, I think, that the
private fiduciary relationships— central bank cannot be
ultimately

create

to

powers

tinguish

and

lem in

as the ques¬
question is com¬

The

sovereign

the

that

opinions.
It is being
said

function -in

can

public interest.

speaking,

tically

fundamental

as

itself.

plicated,

i ng

e r

that

We can termining how Man could be
question in dowed with free will since

the

tion

they would be likely to take, on
occasion, if the System were

matic

.

problem of a central bank's
sovereign, or prac¬

ment,

circum¬

political

with

deal

only

exprejBsi ng
d

It permits the authorities of
to take a longer-run
view of the public interest than

sion

origins of central banks.

ex¬

citement

•

whether

permanent constitutional

relation to the

have surrounded the

that

stances

all

can

the

.:

embarras¬

System

legally

to

seem

more

the

sure,

long-run

The

Sovereign Power?

and

technical

judg¬

we

.

.

alternatives

hardly

sing.

practically
delegated, we cannot find the an¬
speaking, to a current administra¬
however,
swer,
1 believe, in
any
of the
tion, is somewhat akin to a prob¬

ments, where¬
find

the

ourselves, then, why
sovereign power should be

a

be

institution

institutions.

ask

we

such

lie

answers
so

tinguishes it from all other Amer¬

If

-

the

be

to

promising.
Any rigid or even automatically
flexible
monetary
standard,

izational

System a
"central" bank and ultimately dis¬

Why Delegate a

•

that

moment
me

kind

without obligations of a

that would -often prove

nature of human fal¬

very

the policies adopted
prove to
have been some¬
thing less than perfect. But at the

in character.
tem

monetary
it will often happen,

will

advantage
essentially non-political
This leaves the Sys¬

be

to

as

the

libility,

monetary affairs, a very
some bits of organ¬
gadgeteering here and high forum in which debate re¬
there might be helpful to the Sys¬ garding monetary policy can take
place and around which public
tem— and again might not. But I
monetary problems
have
been
unable to
find any opinion - on
convincing reason for
believing can crystallize. This seems to me
a very important and often over¬
that the Congress has failed to do
looked corollary of the System's
an
excellent job of designing an
To

-

Reserve

ican banking

capitals.

in

removed from con¬

far

so

or

policy-made

and

system, and

siderations of political

well

things seem to me

these

litical

not we want a free society.
Federal

the

cal

the Federal Reserve uarms—

continuity, per¬
ception, and responsibility to such
a
central
banking organization.
The dispersion of authority within
the System, as well as its geo¬
graphical dispersion, is, inaeea,
not calculated to give a computer¬
like speed to its decisions. Rather
the contrary.
But it is calculated
to give some measure of insula¬
tion against—dare I say it?—the
sometimes whimsical notions that
seize upon both financial and po¬

tK protect his savings by access to ultimate money—

symbol

a

experience represented in the
of the Board of Governors

all

aged

The System au¬
however, gain their
places by virtue of qualifications
that are either wholly non-politi¬
thought.

litical

thorities,

calculated to give

Bank of Atlanta

Speaking solely for himself, Atlanta Federal Reserve head
there must be a fundamental personal right, another rule of

the administra¬

tive

and

MALCOLM BRYAN*

By

the Washington

local

staffs

Standard

And the Monetary

both
levels;

at

ligence
and

Let

me

that seem to me to be
important, on which I

problems

more

even

shall make
We

The

real

most

the
the

believe,
difficulty in

and,

profound

whole matter of

a

I

society's

order

of

magnitude.

It

is

a

difficulty that I hestiate to men¬
tion because I cannot thoroughly
think

through

even

my

own

un¬

easiness, let alone propose a con¬

vincing alternative. It is the prob¬
lem

involved

whether
or

any

in

can

the

question

of

agent—central bank

administrtaion

or

legislature—

in the end be safely entrusted

to dontrol the ex¬
pansion and contraction of a peo¬
ple's money supply.
This sort of question insistently

with the power

the problem of alternatives.
Central banking implies a man¬

poses

philosophic

fundamental

pre¬

occupation in the founding of our
own country.
It seems to me that
the
so

arguments for rule of law are
persuasive that they must one

day prevail. I myself am so per¬
suaded that I am tempted to say
of

in the twilight

is

world

the

that

manipulated

systems.

money

afraid that such a state-,
optimistic, for

But I

am

ment

would be too

suspect that the world must get
good deal sicker of monetary
convulsion before fundamental
reforms are acceptable.
a

it

probably

would be more cautious

and more

meantime,

the

to

in

world

standard,
found.

be

mone¬

tary arrangements is of a differ¬
ent

a

accurate

Control?

<

than rule of men was

law rather

In

Money-Credit

Trust

Can

of

agree—perhaps I am pre¬
disposed to such agreement, as
many of us are—because rule of

comments.

some

by

governance

a

I

I

turn to a few other

now

timately require

a

of

sort

say

search

that
of

we

are

a

monetary

a

which in the end must
For the time being, as
stage,

intermediate
in

world

are

a

for

central

we

search of criteria

action

bank

for

and

actions

which the monetary
of the sovereign may be

judged

both

others.

The

criteria

by

the free

ical

and

utterly

by

by

himself and

danger,

that

I

think,

is

world; whose polit¬

freedoms

personal

dependent

upon

a

are

free

economic society, will destroy

its

succeeds

in

it

freedoms

before

finding

monetary standard ap¬

a

propriate to
before
central

a

it has
bank

free society, or even
evolved
and

criteria for

sovereign

ac-

Volume

ISO

Number

5874

.

.

.

The Commercial and Financial Chronicle

(731)
lion

having

than

more

transitory

said

acceptance.

Distinguishes

FROM WASHINGTON

Monetary

Standard
From Bank Action

It
of

is

obvious

that

the

bank

action

are

distinguishable.

problems, though,
will

I

not

make

few

a

tain

remarks

places

in

at

distinction

a

cer¬

will

be

implied.
free

a

society
rule of law in monetary affairs

a

Young

must have at least

a

total

by

acceptance

subjected to it.
course,

the

A rule

be

may

sovereign;

general if not

people.

of

law/of

has
an

stew

think

I

bor.

weeks
went

Jack

the

appealed

the

his listeners to

Senators

not to be served

today,

so

tomorrow.

gone

by a law that
to speak, and

Such

rule of
law would, at best, hardly be bet¬
ter than a rule of men, and indeed

there

are

such
the

ad

etary
the

could

arguing that

be

hoc management
If we are

of

law

rule

of

mon¬

to

have

governing
be

must

than

worse

affairs.

rule

a

for

reasons

rule

a

a

so

money,

convincing

lation

strained

for

capricious

Such

they will

and /(b)
sovereign'will be re¬
from changing the law

the

rule

a

erratic

or

of

law

reasons.

is

hard

to

by. We have had many pro¬
posals. A variety of tabular stand¬
come

ards

have

price

proposed

matic

the
gross
national
various plans for auto¬

expansion

supply.
ards

of

Various

have

been

the

money

metallic

stand¬

proposed.

There

considerable

a

the

—

level,

product,

is

been

propaganda

for

return to the full gold
standard.
In this country we have had

a

Carlisle

BargeroD

brother,

so

John,

happens

who

is

strong legislation.
legislation that is fairly
organized

labor

eration

also

for

had

standard.

the

of

them

In

a

to

retain

August 21st Oscar Gruss &
Son, 150 Broadway, New York
City, members of the New York

it

up-.

accept

Kennedy-Ervin

labor

bill

sending it
making it fairly

that

be-damned

he

would

report

by Tuesday if
reached by

be

can

if

doesn't.

he

and

If

union.

a

"L

Fears have been

the

bill

would

Admit New Partner

expressed that

get

bogged

down

the conference between House

in

Harris, Upham to

.

Harris,
Upham
&
Co.,
12(1
Broadway, New York City, mem¬

and Senate conferees. Before

bers of the New

let the bill go

change,
on
September
1
will
admit George H. Howard, Jr. topartnership.

the

ever,

exacted

a

they
to conference, how¬

conservative

Senators

promise from

Majority

satisfied with it.

he

bill

his

The

the

But the television audience took

doesn't

was

hold

on

to

a

strong

be labor

legislation at this session
he

if

even

had

to

keep

in session until next

The, only
what kind of

fact

Senator

that

the author of

a

Kennedy

labor bill has

young Bob's appeal literally. They
have been deluging members of

prestige. Now, re¬
gardless of which way he turns he

Congress

is

with

letters

demanding

and

strong

tele¬

legisla¬

One Senator's mail has been

running at the rate of 300 commu¬
nications daily.
As a result, the Senate consid¬

added

to

uncertainty
a

is

is

just

labor bill it will be.

Goldwater, of Arizona,
leading Republican con¬

the

feree.
that

«.

He

he

would

expressed

and

Senator

able

to

be

GROSSE
Mich.

opened
Mack

on

a

sat¬

isfactory bill. He is not in favor
of any softness.

to

come

out

the

loser.

Senators who had been working
for a strong labor bill were right
miffed

at

appeal

on

young

TV.

Bob Kennedy's
One Senator, in

answering his mail

on

the subject,

These Bonds have not been and

for

not

a

however

no

J. H. Fall Joins
F. S.

Moseley & Co.

long time before

Criteria of

South

135

La

thought

that

Moseley & Co.,
Street, it has

Salle

that

must

and

it

be

cannot

such

of

Mr.

Fall

was
formerly associ¬
Benjamin Electric Man¬
ufacturing
Company
of
DesPlaines, Illinois. He served that
company for 25 years variously as
vice president and general sales
manager, treasurer and a director.

LOUISIANA,
Bond

whimsically

are

not

has got to get
of

may

First

the

will

have

If so, then let

mind

a

your

in

which

System

a

the

has

Sinking Fund Series due 1971 *
were

issued in

exchange for

4^% Bonds-

Due December 1, 1971

me

re¬

rather minor
Federal

Re¬

endeavored

something analogous

remember

ago

the

System

idea

that

in

events

tract

it

direction

of

Meyers.

1979

'Agreements relating to the purchase and exchange of the Bonds

to

were

to,

negotiated for the Corporation by the undersigned.

rule of law.
You

branch

Corporation

general

acceptance.

establish

a

of record only.

Mortgage and Collateral Trust Twenty-Year Sinking Fund

lot sicker before

a

law

call

serve

Mo.

the

would

from

that

some

time

introduced

normal

add

to

the

course

and

of

oAllen & Company

sub¬

the

supply of reserve
funds in this country by dealing
in a near equivalent
to money,
Government

bills.

became known

as

The

doctrine

"bills usually."

Continued

on

page




26

August 17, 1959

—

Banker*

Securities

being offered to the public.

Sinking Fund Series due

♦which

by

Escher.

E.

has
the
Bank of Louisiana Building under

or

either

sovereign. It

or

thought that I am unduly cyn¬
ical in suggesting that the world

matter

and

opened

Mortgage and Collateral Trust Bonds

5%

uni¬

be

to

Richard

Opens New Branch Offico

ated with

acceptance

changed

central bank

rule

C.

Building, under the manage^

is to be of

have

binding

capriciously

a

Allyn Branch

ment

$20,000,000
First

management

been announced.

am

suggesting that
rule
of
law
in

a

Bank

in

severe

satisfactory

monetary affairs, if it
use,

I

Schwehm

fice in the Farmers and Merchant*

—

we

Money Rule of Law

a

be

may

the

the

under

Wal-

opened

Joseph Hor-

ment firm of F. S.

an acceptable
proposal for
general rule of law in monetary

versal

in

—

has

joined the invest¬

CHICAGO, 111,
ton Fall III has

Mortgage and Collateral Trust Bonds

53/4%

V

CENTER, Wis. —
Allyn and Company, Incoirporated has opened a branch of¬

A.

matters.

much

Inc.,

office

New

yet

First

20155

RICHLAND

evolve

unduly

Co.,

branch

■S 10.000,000

pro¬

rational, has

at

manage¬

of Charles J. Dooner.

The Colorado Fuel and Iron

launched,

a

&

the
bank

from

point here is that

go on a

It

office

Joseph J. Paletta.

Building

This advertisement appears as a. matter

to persuade the Amer¬
ican people. That is why I
suspect
that the great debate on
money,
on
which we are now

a

branch

a

Avenue under the

prob¬

central

WOODS,

ATLANTIC CITY, N. J.
ston

been able

must

POINTE

Smith, Hague & Co., has

New Waist on Office

Kennedy

agree

—

ment of

confidence

his

bound

Stock Ex¬

Opens New Office

Congress

January.

Senator

chances with the general

are nil.
irony of the situation is that

York

Leader Johnson that there would

the

Kennedy's chances with or¬
ganized, labor leaders are nil. And

public

Although the labor lead¬
protested, privately they were

tion.

to

without

conferees.

islation.

grams

wouldn't be permitted to throw a
picket line around a plant whose
employees didn't want to belong

mone¬

proposals but from a
multiplicity of proposals and, as I
will mention later, from an ex¬
cess of expectations.
The

conservative

the

of

posal,

the

op¬

as

immediate

suffer

we

of

well

as

more

criteria

dearth

that

determined

are

On

have

we

dealing with

standard,

somewhat

action,

bill

Senate

Griffin-Landrum bill gets through
the
Senate or, anything like
it,

altogether

fundamental problem

of

the

He is be-damned if he does

Many of these proposals
extremely thoughtful

thoughtless.

lem

Griffin-Lan¬

energetic propa-r
constant depreciation

a

some

tary

try to softep

agreement

no

if

well

to

have

to

reported out of the Senate Com¬
mittee was fairly this type of leg¬
ers

confer¬

Senate

and

conference,

been

and

the

very

ganda for
have

time, and

a

Oscar Gruss Partner

brothers.

in

young

a

Government bond standard in

a

want

to

conference be¬

a

back to the Senate

It

leaders.
The

House

assurances

this

satisfactory

to

sent

was

House

to

member of the rackets committee,
not

Senate

plain that they distrusted Senator
Kennedy, who is the leading Sen¬
ate conferee. He finally had to give

and

at

this bill

the

to

There it will be Senator Ken¬

the

session of Congress.

his

back

concurrence.

tried

demand legis¬

He wants

beneficent rule that (a)
to its discipline,

be

to

with
secondary
boycotts, Stock Exchange, will admit Wil¬
racketeering, picketing, and or¬ liam T. Murphy to partnership.
ganizational picketing. The union

to the

Conservative forces in the Senate

labor

does

even

The House passed
came

it

nedy's job

and

leaders

came

and

tween

stop the
high jinks of

the

had

which

bill

House.

ees.

they wanted

it

submit

to

to

that

Griffin-Landrum

plenty of teeth in it,

It

Congressmen,
if

erably strengthened the bill but
a relatively weak
bill.
In the House though, the so-called

for

their

and

the people so persuaded that
is, in the long run, a wise and

bill

forces

,

still left it

Parr, and

write

here

TV,

the show of

on

a

is

BARGERON

front out of three bills before the

he

ago
on

by

purpose and benefits of
rule of law in monetary affairs

A:'

Several

essential

are

Kennedy,

la-

on

that

changed

but

Counsel
Committee,
certainly got his brother, John,
aspirant for the Presidency, in
Bob

for the Senate Rackets

a

It is clear that in

Murphy

deal

scholarly

which

W. T.

-

"Provisions

similar: and

are

try to

to

He

to the Kennedy

dressed

two

.distinctions, but will merely make

brothers

drawback

suggested
correspondence be ad¬

the

drum

CARLISLE

BY

Kennedy

greatest

legislation.

strong

...Ahead of the News

problem

monetary standard and the
problem of criteria for central

the

the

that

a.

Many of the elements of the

that

were

7

Co.,
office in

I.

Francis

G*

8

Chronicle

The Commercial and Financial

(732)

worth

Laboratories, Inc.—Analysis—Hardy & Co., 30 Broad
Street, New York 4, N. Y.
American Enka Corp.—Memorandum—Van Alstyne, Noel &
Allied

Dealer-Broker

Co., 52 Wall Street, New York 5, N. Y.
News Company—Analysis—Schweickart

Investment Recommendations

countries

to

Broadway, New York 6, N. Y.

TO SEND INTERESTED

Street, New York 5, N. Y.
Apache Oil Corporation—Review—Paine, Webber, Jackson &
Curtis, 209 South La Salle Street, Chicago 4, 111.

PARTIES THE FOLLOWING LITERATURE:

Industries,

Botany

Inc.—Analysis—H.

Monthly Investment Letter

Rhoades &

Annual Review

—

Cells—Discussion—National Securities

Fuel

In
,

Expenditures

1959

for

Japan

in

and

Cement Co.

and

survey

a

Flour Mills Co., Iwaki

of Kentucky

issue

Co.,

Inc., Kentucky Home Life Building, Louisville 2, Ky.
Gas—Bulletin—Draper Dobie and Company Ltd., 25
Adelaide Street, West, Toronto, Ont., Canada.
New York City Bank Stocks—Comparison and analysis of 12
banks—Laird, Bissell & Meeds, 120 Broadway, New York 5,

New

a

20

-

year

and

621

Investment

as

of securities which appear

with lists

Aug.

By ROGER W. BABSON

at¬

Publicist

points out both advantages and pitfalls in

Electric
&

Service
Union

Light

Co.,
Gas

Public

western

particular reference to Central
Gas Service Co., Kansas City
Gas Co., Missouri Public

with

Gas

Co.,

Co.,

Lone

Northwestern

Co.,

Canada Pipe

&

Star

Public

Southwestern
Service

Service

Co.,

Electric

Service

Texas

Utilities

Co.,

Southern

Co.,

South¬

Co.,

Trans

Lines, Western Light & Telephone Co. and Wis¬

Many
their

Day

into

attic

the

—

Vilas & Hickey, 26

Special
Wall

Situations—Bulletin—H.

E.

Herrman

&

Company,

52

*

*

*

Air

Express International Corp.—Brochure—Troster, Singer
Co., 74 Trinity Place, New York 6, N Y
Alleghany Corp.—Review—Shearson, Hammill & Co., 14 Wall
Street, New York 5, N. Y. In the same circular are reviews
of Interstate Engineering, Vanadium Alloys Steel, and West¬
&

Union

ern

Telegraph.

H. I. Thompson Fiber

Also

available

is

a

memorandum

on

Glass Co.

New

in

appears now,

more

Roger W. Babson

its

and

24-year history, to be contributing to a new
dynamic phase of development for this world's

largest forwarder, clearance broker
of international air

cargo—with

a

and consolidator

global network of

353 offices and
agents.

right

period,

to

which

Hall."

she
that

Around

small school

a

time

I

goblets

in
and
I

if your

good friends,

one

me

named

help¬
She

many ways.

day and asked if

ideas about investments
school teacher"! She

"poor

added that she had been thinking
of

a

them

half

now

sold in the

should
her

in

Certain

by

dozen

a

be

of

valuable

few

dollars

of

time.

Modern

not

year

costume

copied

all

74

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400




Teletype NY 1-376; 377; 378

Some two years ago

passed on to a better world and
left this furniture to Dana Hall

(which

has

well
known institution). As the school
is

raising
buildings,
the
now

decided

furniture

)

become

to

very

money

for

Trustees

auction

and

a

other

off

this

new

have
old

treasures—

Many

Have

Association

Foreign

Schroeder.

(Toronto,

young

of

Stock

Exchange
meet¬

First Board of Governors

ing at the Royal York
1959

14-17,

Oct.

Hotel.

(Philadelphia,

Pa.)
Consumers Bankers

Association
at the

convention

annual

39th

Hotel.

Warwick

Trader Wanted
Young, alert trader wanted by long

ties
tems

people
collect
I saw an album
the other day which had only two
stamps of any worth out of a
collection
of five thousand,
but
these two stamps are valued at
several

Bank

of

annual convention

1959

28-29,

over-the-counter

established

Collections May
Value

postage

Hotel

the

at

Sept.

these

volved.

Miss Cooke

Association
37th

Women

jewelers

of

broaches because of the labor in¬

Stamp

properly restored.

(Milwaukee,

Wis.)
National

be

appraised
jeweler.
Any
acquired over 50 years
would have to be recut in

have'

be

Troster, Singer & Co.

Club.

Sept. 23-25, 1959

old-fashioned

could find something which could

Members A etc J ork

day, Friday, Kenwood Country

Canada)

accredited

into

a

old

Thurs¬
City Club: field

at Queen

day

good market, but

a

should

mahogany
furniture secured from old attics,
auction rooms, and wherever she

selected

Ohio)

Municipal Bond Dealers Group
of Cincinnati annual outing —

old

hundred

Carefully

fling-ding at
Country

Tee-See

even

diamonds
ago

-

Club.

furniture, of the order to be salable today.
Old
proper periods, believing that this gold and silver, however, always
would
have a value, selling by weight.
gradually
become
more
valuable.
I agreed that her plan An antique dealer is
usually in¬
seemed
wise.
Thereupon
she terested also in old broaches even
started to put her savings of
if they did not cost much at the
a
buying

annual

Sept. 17-18,1959 (Cincinnati,

kitchen.

kinds

items

an

111.)

(Rockforcl,

1959

sociation

these

grandmother is still using

jewelery have
such

Elmhurst

cocktail and dinner party

of

set

11,

Mauh-Nah

miss¬

stores. Almost every grand¬
mother,
however,
has
a
few
pieces of actual Sandwich glass.
A

for boys

Cooke

Miss

very

to

I had any
a

usually replace

at

it

dime

$1,000

Mass.,

for

can

makers which are

Cooke she had

Restau¬

Rockford Securities Dealers As¬

thing to look for is old
glass. Unfortunately, copies have
been
made
by
modern
glass

Helen Temple

became

than at any other time

the

Outing

and

Sept.

Another

Miss

started

Day

ing part.

When I first

came

external,

of

parents or
great - grand¬

Wellesley.

timely combination of events, both internal and

is

and

dealer

met

Welty's

Country Club.

have little value. But if

makes little difference how badly
it
may
be broken. An antique

parents.

at

Club; cocktails and dinner at
University Club. Sept. 11: Field

the furniture is made of mahogany

ing each other in

A

not

England
by
your
grand-

"Dana

Express International Corp.

Value

No

thing is old
necessarily
make
it

pictures

ley,

Air

of

a

ever

start a small
private school for girls in Welles-

Additional Brochures avfhlable-

that

which

borrowed

For financial institutions

fact

old—is of little value; old
books, in general, sell at auction
for
perhaps 200 each; and old

from

Brunch

10:

Furniture

Stuffed

does

was

(Chicago, 111.)

rant; luncheon at Chicago Yacht
The

brought

Street, New York 5, N. .Y

get

be some¬
thing of value

may

Comparison

should

valuable. Stuffed furniture—how¬

Co.,

Broadway, New York 4, N. Y.

Kali

Country

Waionda

Municipal Bond Club of Chicago
23rd Annual
Field
Day—Sept.

$100,000.

furni¬

a

—

it

Dana

There

is

Bonds

what

see

of d is-

way

carded

&

Railroad Income

and

around

contains in the

consin Power & Light Co.—Eastman

Dillon, Union Securities
15 Broad Street, New York 5, N. Y. Also available
on
Avco Corporation.

visiting
during the
to go up

them

urge

which

the

at

10-11, 1959

Sept.

supply cannot be increased.

be

homesteads

I

ture.

bulletin

will

readers

old

summer.

(Des Moines,

20, 1959

Club.

Corporation.
for

-

Iowa Investment Bankers Field

acquiring old

inflation-hedging elements in purchase of old
books, old glass, jewelry and stamps. Urges confinement to articles
whose

19

Iowa)

furniture. Also analyses

Also available are reports on Alco Products
Anaconda Company and a detailed analysis of Dana

Illinois

any¬

home.

Events

Corporation—Analysis—Hill Richards & Co.,
Spring Street, Los Angeles 14, Calif.

Old Furniture

5, N. Y.

Power

when buying

IN INVESTMENT FIELD

tractive.

Public Utilities—Bulletin

S.

good

your

Financial
South

period—

Paper Industry—Review—Reynolds & Co., 120 Broadway, New
York

apply

thing for

U.
a

is

Inc., 46 Front Street, New York

Upham & Co., 120 Broad¬
Also available is a discussion of
the Peace Scare, and the August issue of

Review"

"Market

This

5, N. Y.

New York 5, N. Y.

Market

to

stamps.

New York 4, N. Y.

Wesco

4, N. Y.
way,

test

and

ap¬

furniture,
old

glass,

Realty & Construction Co., Inc.—Analysis—Jesup &
Lamont, 26 Broadway, New York 4, N. Y.

Paper Companies—Analysis—Harris,

and

postage

re¬

principle

same

Tishman

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
over

oceanfront

as

underground

Street, New York 5, N. Y.
*'• *"• ' *
& Company—Report—Thomson &
McKinnon, 2 Broad¬

way,

performance

The

Sandwich

Co., 54 Wall

Corporation—Analysis—William R. Staats &
South Spring Street, Los Angeles 14, Calif.
Company—Analysis—Halle & Stieglitz, 52 Wall Street,

York

such

Swift

New York.

market

—

and

Sterling Drug, Inc.—Report—A. M. Kidder & Co., Inc., 1 Wall

Over-the-Counter Index—Folder showing an up-to-date com¬

National Quotation Bureau,

increased

640

Pittston

can

money.

property
sources.

Street, New York 5, N. Y.

review—Bankers Bond

more

plies to old mahogany

Street, Chicago 3, 111.
Corp.—Memorandum—R. A. Holman &

Cd.,

the

the Hobart Manufacturing Company

on

Pearson

—

Natural

and

always
Therefore
money in the bank or elsewhere
is not a good hedge against infla¬
tion as it may become slowly but
constantly
of
less
value.
An
inflation hedge should be some¬
thing whose
supply
cannot be
government

print

Permanent Filter

Notes—101st

yield

reports

are

Inflation?

Causes

What

The

J. Gabriel Co., Inc.,
Avenue, New York 22, N. Y.
Montgomery Ward & Co.—Analytical brochure—Glore, Forgan
& Co., 40 Wall Street, New York 5, N. Y.
Panellit, Inc.—Analysis—Leason & Co., Inc., 39 South La Salle

York.

New

stamps.

Madison

625

Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

Local

Corporation—Analysis—Reilly, Hoffman & Co.,
Also available is a

and Home Insurance Company.
Stores Corporation—Circular—A.

of the Steel Industry.

Japanese Stocks—Current Information

Organization,

Howard

of

analyses

brief

Conklin

Street, New York 5, N. Y.
Controls—Report—The Milwaukee Com¬
207 East Michigan Street, Milwaukee 2, Wis.
Also

pany,

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment
Mitsubishi Heavy Industries, Nippon

Metals—Bulletin—DeWitt

Chemicals &

available

S.tock Market—Study of changes in postwar years—
issue of "Nomura's Investors Beacon"—Nomura

honest

an

quotation for each of these U. S.

Wall

current

to

Control

Hagan

Research Cor¬

poration, 120 Broadway, New York 5, N. Y.
Japanese

price

dealer.

Union—Review—Ira Haupt & Co., Ill Broadway, New
York 6, N. Y.
Gray Manufacturing Company—Analysis—Parrish & Co., 40

—

&

40

Grand

Carl M. L6eb,
Co., 42 Wall Street, New York 5, N. Y.
Companies

Electric Utility

Co.,

Inc., 79 Wall Street, New York 5, N. Y.

Street, New York 5, N. Y.

old United States

some

good

review of Northeast Metals Industries.

industry—

the

on

have

a

Broadv/ay, New York 5, N. Y.

Glide

Briefs—Data

Pharmaceutical

&

Barney & Co., 20 Broad

&

Street, New York 5, N. Y.

Commun

120

Co., 52 Wall Street, New York 5, N. Y.

E. Stern &

Smith,

Du

Also avail¬

interesting—Herbert

Capital Gain—List of stocks which appear

Chemical

Burnham and

—

N. Y.

Darlington

at

Probably your public
library has
a
stamp
catalogue
which
will
give
you
a
price

Wall
—

people

stamps on them that could be sold

Brunswick-Balke—Memorandum—Hill,

Company, 15 Broad Street, New York 5,
able in current Foreign Letter.

market.

stamps. Old letters found in attics
may

Street, New York 5, N. Y.

Burnham View

them

sell

to

confine their collection to U. S.

to

Wall

72

Co.,

&

Hentz

order

collectors, and this disturbs the
I advise interested young

Wall

MENTIONED WILL BE PLEASED

IT JS UNDERSTOOD THAT THE FIRMS

of the newer
constantly printing

in

foreign' stamp

Hogle & Co., 40

American Viscose Corp.—Memorandum—J. A.

and Literature

Wars

countries;

some

are

issues

new

World

The

foreign

upset

furthermore,

Co., 29

&

much.

have

>

American

Thursday, August 20, 1959

...

.

.

.

house
.

.

.

.

.

.

salary

extensive
or

securi¬

wire

sys¬

commission basis

full cooperation

assured.

stamps.

hundred

stamps

dollars

each.

not

often

are

Box

B-l,

Commercial

& Financial

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

Volume 190

Number

5874

.

.

The Commercial and Financial Chronicle

.

(733)

Public Utility Securities

duction

rent

textile

Florida Power & Light Company

trade is of

course

increases. He points out that mill cloth inventories

raising cf citrus fruits

and vegetables is the principal business in
other areas, with
light industry now beginning to come into the
State.
Last year electric revenues were about 47%
residential,

38% commercial, 10%
load

in

occurs

winter,
farming.

tourist trade and

to last year.

at about the

and

The peak
time for both the

same

heating is not as much in vogue as in
other parts cf the
country, and greater use is made of electricity <'
for heating and
air-conditioning.
the

end

of

1958

the

company's generating capacity was
peakload of 1,200,000 kw, indicating1

resulted

for

in

I

paper

on

Highlights,
should

I

cover

these five subjects on an assembly
The
Pastore
Committee

basis:

Report; Cotton Price and Loan
Supports under the Agricultural
of
1958; the
1958
Textile

Act

Identification

which becomes effective

3,

1960;

Price

Volume

Trends.

A

Law

March

on

Trends;

and

definition

"a

of

appropriate in

a group of purchas¬
agents and I make bold to
suggest this: "A good purchase is

ing

Light is considered the "premiere" electric

utility growth stock, and hence sells currently at around 28 times
earnings, based on the recent price of 51 and the earnings of $1.86

one

whereby the buyer acquires

desired

for the 12 months ended June
P-E

able seller for

30, 1959. This is probably the highest
electric utility. The reason is indicated in the

any

table below which shows the
share earnings
shown

an

uninterrupted increases in revenues,

and dividends in the past decade.

a

and

Revenues have

yearly gain of 14%, share earnings 13% and
dividends 11%. However, for the last five years the rates of
gain
would be 16%, 18% and 14%. The stock this year sold as
high as
55

with

in

5

1949

(after

adjustment

for

two

the

gain to the seller
fair profit to the

promises

a

buyer."

average

compared

reasonable

a

a

right
a depend¬
price which shows

commodity of
type and quality from

ratio for

will

I

which

2-fcr-l

use

are

number of

a

The

price-earnings ratio
increase of 11

Power

&

Light

Pastore

in

a

special

Senate

sub-committee

Committee

The
the

the

help

inventories.
recommended

of

a

permanent

committee within
Department of Commerce to

the

-

agency

stimulating

deal exclusively with textile af¬
fairs and to suggest
programs; an
advisory committee to be ap¬

lines.

pointed by the Secretary of Com¬

many

the

textile

in¬

in

1957.

1947

to

26.950

per

During those ten

profits

years

dropped from 8.2%
1.9%, even though pro¬
ductivity increased from 7.8 yards
per manhour to 11.6 yards.
of sales to

atives

and to consist of represent¬
of
management, labor and

The

close cooperation with the
two
other committees. Some weeks
ago
the first committee was

organized
composed of assistant Sec¬

and is

retaries from the

Commerce, Ag¬
riculture, Defense, Labor, State
Treasury Departments.

and

capita consumption of

per

all fibers in 1947 was 44.5
pounds;
in 1957 it was 36.2

pounds.

Percentagewise, the division in
the two years was

as

follows:
1947

1957

72.7

65.7

%

Cotton
Wool

10.9

6.0

Rayon and Acetate

15.0

19.0

1.0

9.0

From later data I find that

In

addition,

the Pastore

mittee recommended
able depreciation
the

and relief

on

cotton

two-price

changes in tariff and

Cotton Prices

a

new

the

and

Loan

gram

for

and

5.7%; Rayon and
and

Acetate

18.8%;

other man-made fibers

9.8%.

Interstate

Accurately the report described
the industry as being
highly com¬
petitive, with many firms, gov¬

laws

Supports
of 1958 is

approach, combining

pounds in 1958 divided among

Wool

quota

The Agricultural Act

with

65.5%;

the
sys¬

through

and regulations.

program

Cotton

Com¬
favor¬

treatment,

elimination of

chase

fibers:

more

tem

capita consumption dropped to

the

of

and

committee

formation

inter

Foreign Commerce held a
series of hearings giving consid¬

on

Cur¬

that will

a

pound

per

34

and

well afford to
dividend rate of 82c
can

tool

a

as

as

pound in

per

Committee

be

the public at
large; and also that
being second only to
at each session
Congress should
military necessity, hav¬
ing about 1,000,000 employees appoint a textile sub-committee
within the Inter-state and
Foreign
during 1957 and showing a sharp
drop in mill margins from 54.840 Commerce Committee to work in

figures

During the second half of 1958,

has also tripled and the combination produces the
times in price.
Florida

is

described

dustry

steel

indicators studied regu¬

larly in the textile business.

as much.
In 1949 the stock sold for only about
nine times earnings—now at 28 times. Thus while share
earnings
have only increased three or four times, the

of

with sales

low compared

are

Other man-made fibers

splits)—11 times

Stockholders

mittee

good purchase" should always be

1959-62, indicating that the company expects its rapid growth

to continue.

Florida Power &

no

dis¬

much larger than inventories

are

bringing out better products

my

Textile

that

Products

1,483,000 kw compared with a
reserve capacity of 24%.
Because of the rapid growth, a large
percentage of generating facilities has been constructed in recent
years. An additional 980,000 kw will be installed during the four
a

years

theme

concluded

climate, central residential

At

has

preparing

the

Residential annual usage is well above the national average—
vs. 3,366—despite the fact that residential rates
somewhat higher than the U. S. average. Because of the Florida

v

sees

Rankin

data is

merce

In

4,207 kwh in 1958
are

Current unfilled orders

hand, and that the battle between different fibers

on

industrial and 5% municipal,^etc.

the

and

Mr.

will be reflected in price in view of wages and other cost

program

pro¬

arriving at better decisions
governing production in keeping

likely price trends for print cloth, finished and gray goods,
doubts any savings resulting from the new, lower
price support

and

largest utility in the State. The tourist
the major activity along the east coast, and the

that

statistics

in

cusses

It is the

areas.

industry. He is bullish for the balance of 1959

disquieting intimations for the first half of 1960.

Florida Power & Light operates mainly along the east coast of
Florida (except in Jacksonville and five other
municipalities), and
also in other

optimistic outlook for the American

on

other

able to the public
promptly.

President, Ewing-Thomns Corp., Chester, Pa.
Textile manufacturer offers

and

gathered quickly and made avail¬

By JAMES L. RANKIN *

ELY

BY OWEN

The committee urged

Cotton Textile Outlook

9

farmers

1959
are

given

a pur¬

loan

a

1960.

two

pro¬

Cotton,

choices.

Those who adopt Choice "A" will

produce cotton
age

on

their basic

acre¬

allotments and for 1959 will

re¬

ceive price support at 80% of par¬

ignore the low yield. Based on the current
the yield is only about 1.6%
compared with an industry average
of about 4.3%.
Capital gains have thus far been a very ample

eration to the factors

erned

reward

the

of cotton and

between 340 and 34V20 per pound

tive

for

for

low

affecting our
textile industry. In February, 1959

return.

current

John

In

spite of the steady increase in share earnings from 52c, in
currently, Florida Power & Light has been able to
raise its equity ratio from 29% to 46%. A substantial part of this
1948

was

to $1.86

accomplished by plowing back over half the earnings, which
together with new issues of stock has substantially increased the

cant

in

the

1949

to

of 1958.

$13.76 at the end

result

of

approximately 7%

fixed

a

on

policy

The low

disbursing

of

the

industry

a

Rhode
an

Island

interesting

number of signifi¬
The

com¬

•An

address

Agents,

by Mr. Rankin before the
of
Purchasing
York City.

Association

New

rics

and

business

countries

set up,

The

This

been

been

have

changes

making

from

in

on an

announcement

of

an

offer

allowed

fuel

costs;

to

contrast

in

the

right

to

is

under

buy

any

such adjustments, with

the

result

to 40%

Continued

TV

—

August 19, 1959

that

the

greater

utility

equity capital

is

much

now

Common Stock
per

Share)

in

California than in Florida.
It's true that Florida P. & L. has had to absorb two rate cuts
in August 1957

—one

of $4.7 million in annual

revenue and

about $2.4 million effective May 26 this year.

from

a

generating

construction
be

to

sure

program.

that

the

In

other

growth

retarded by inadequate power and

this

in

be

to

of

of

Price $17.50
per

the

words

Florida

itself

general

The Prospectus may be
ment is circulated from

the

on

or

very

brokers

as

may

obtained in any State in which this announce¬
only such of the undersigned or other dealers
lawfully offer these securities in such State.

Commission
will

not

be

light facilities. It is to be hoped

Merrill

climate will continue.

regulatory

Share

more

intimated

the

side in order to aid the company in financing its

generous

that

has

Commission

fair return

a

to IV2 %, this level being somewhat

neighborhood of 6V2

wants

The

capacity.

considers

unofficially that it

heavy

one

The latter resulted

revision cf the fuel adjustment clause to adjust for

efficient

Lynch, Pierce, Fenner 8C Smith
Incorporated

—Gammon Stock: Record**
Revs.

(Mill.)

Amt.

Yea?

!S145

1953

Incr.

Share Earnings
Amt.

131
110

1955

93

1&-.V

1954

79

13

-

Incr.
13%

Amt.

$.76

Incr.
.

15%

Approx.

Equity % Earn,
Ratio

Invest. Cap.

46-27

46%

7.7%

1.49

15

.66

3

30-23

42

7 8

25

.61

17

25-19

38

7.5

1.03

17

.52

18

20-14

40

7.1

.88

14

44

10

15-10

34

6.5

■'

1353

70

.77

3

.40

8

10-

3

31

6.5

1952

61

11

.71

13

.37

6

9-

7

33

6.6

1951

55

20

.63

3

.35

9

7-

6

32

6.0

1950

46

15

.61

11

.32

7

6-5

34

6.8

1949

40

3

.55

6

.30

7

5-

32

6.1

39

*

1943

.52

29

6.6

Average
•Not

calculated-

15

14%

**Adjusted for




*

.23

13%

2-for-l

*

5

11%

split-ups

in

on

Range

'

1.30

19

1957

195C

13

%

81.76

11 r'o

—Dividends—

1955

on

circumstances to he construed as an offer to sell or as a solicitation
of these securities. The offering is made only by the Prospectus.

(Par value $2.50

and, 1969-

A. G. Becker 8i Co.

Hornblower di Weeks

Kidder, Peabody 8i Co.

Incorporated

-

Paine, Webber, Jackson 8C Curtis
A. C.

Allyn and Company

White, Weld 8i Co.

Hallgarten 8C Co.

Incorporated

E. F. Hutton &

Company

increase

and will have the right to

no

result

a

Choice "B"
to

borrow up to 65 % of parity, which

Eagle Food CentersFlnc.

been

produce

their basic acreage allotments
up

188,500 Shares

California

As

new

pound lower than prices

...

enlightened basis.
adjust their rates

have not enjoyed the designation of "growth utilities."
of

able

paid by the American mills.

improvement in share earnings has been irregular and the utilities

cost

been

given

close

a

utilities, which also enjoyed rapid population growth, have

prohibited

have

are

activity

electric' utilities

for

which

low-wage

dividends

book value of the common stock.

however, regulation has been

automatically

apparel from

purchase cotton at six to eight

cents per

in Florida, but also to a favorable
regulatory climate. Years ago the state was not noted for sound
regulation* Florida Power Corp., for example, was badly treated
by the Pinellas County Board. Since the present State Commission
was

and

to

middling inch cotton.

Farmers who adopt

increasing imports of certain fab¬

runner-up) has been due not only to the steady increase in popu¬
lation

subjected to destruc¬
competition in the form of

ity, which is estimated

payout has

in

(although Florida Power Corp. has

of

recommendations.

National

The company's growth record, probably unequaled elsewhere
in

Pastore

to

equity ratio. This gives the company a safety factor—it could
equity financing for several years (if necessary)
which
would have a bolstering effect on earnings. The heavy plow-back
of share earnings has also increased the adjusted book value from
omit

been

O.

of which Senator

Chairman, filed

report with

was

$4.85

committee,

by governmental controls
minimum wages and the price

on

Shearson, Hammill 8C Co.

page

10

Financial Chronicle

The Commercial and

will be less than

Continued jrom page

9

have been

many

figuring.

72%

find that ratio reduced
April, 1959. In April,
195.9 unfilled orders were equal to

Outlook

Cotton Textile
for

about 23Vi0 per pound

means

cost

will be at lower levels.

make

thus

can

have

They

market.

the

from

no
right to
Commodity

Credit Corporation.
Farmers in Choice

"eJ"

can

keep

borrow on it from the
Government,, or sell in the open

the

The

purchases, and this must

1959

the

offered at prices not less than

10% above Choice "B" loan levels

estimate

I

which

means

resale

a

price of about 31 l/z0 per pound for
middling inch, to which must be
added about 1%0 per pound for
freight and handling charges, re¬
sulting in a delivered cost of 33b
or
higher. For middling 1 1/16
inches
the delivered
price will

reasonable

seems

predict

to

"B" farmers will ex¬

pect to sell at this figure or even
higher, especially during 1959.

the

will have his

free

The

of

carry-over

cotton

in

merchants

as

of Aug. 1 will almost

than

less

be

certainly

One

V/z

million

Generally
regarded as

bales.

bales

is

the minimum tree carry-over un¬
der which the

import cotton quotas describes the
current situation in these words:

While Aug. 1 is usually
regarded as the beginning of the
cotton

crop

year,

as

you

all

probably know, the new cotton
crop will not be available in big
.volume until about October, which
means
November for the begin¬

spinning operations arid
for fabrics and apparel
made from new cotton. Therefore,
ning

ton
any

of

cotton prices will probably remain
it will be

much

a

number of months and

early 1960 before

benefit

duced

in

the

prices.' The

form

.

"While

•

small cotton pro¬

many

ducing countries have small quota

29,000
sub¬

to

amounting

allowances,

bales, the only cotton of any

that

in
from

stantial

quantity

coming

in

Mexico

and

is

and
about

to

amounts

it

group

Brazil

eliminating

quota

is

is

larger

the
request by
cotton producers
before

pending
Commission a

Tariff

staple
to reduce the quota from its pres¬
ent 88,000 bales.

the

long

is

"It

believed

not

Commission

Tariff
action

will

that

the

take

any

that would have any bear¬

rules

first

day

August and has
by the foreign

of

percentages in most textile fiber
products at every point in produc¬
tion with the necessity of attach¬
ing labels or tags on the products
in the form in
which the final

.

Thursday, August 20, 1959

.

size of the
of foreign cotton, re¬
of

the

production
gardless of the price of the foreign
cotton, the. American mills and
American

in

are

it

have

consumers

the

beyond

opened

up

no

quotas

once

each

Once they are filled, if you
could buy it at half price abroad,
it would still do us no good."
year.

seems

decision

the

is

to

me

to conclude

probably be
actual

that

cost

no

of

the
that

there

reduction

cotton

the next few months and
decrease for the

wise

in

during

percentage

points in each direction. By way
of example: if the label indicates

announcement

is

an

as

acrilan

considerable volume of grey

above those which

10%

prevailed—

difference in the early part of 1958. The. mill
production — the margins (the difference in the
highest commitment level since sale price of 20 standard construc¬
January, 1956.
Another index is tions over the cost per pound of
the number of spindle hours of the cotton content) in April, 1959
with
cotton system equipment. During was 27.18d as contrasted
November, 1958 the weekly aver¬ 21.740 in June of 1958. However,
this
margin is only about oneage was 2,228,000,000 spindle hours.
duction, resulting in

this

of

March

February

for

figures

The

a

weeks

9.2

of

were

year

and
about

half

that

of

1947.

which

Textile

mill

in.

prevailed

products

gen¬

2,251,000,000 each, but for April
they
increased
to 2,368,000,000,

erally sold during 1958 on a profit
margin of 1.7% on sales and 3.7%

which is about 6% over tne oper¬

on

1958. Stu¬
of the meaning of popula¬
November,

of

dents

the net worth

of the

contrasted with 3.4%

7.9%

industry,
sales and

on

net worth in 1951.?

on

changes

tion

groups

us

must

now

polyester

a

v/orth, both much lower than
ings
11

industries;

companies

contends that while the man-made

7.3%

begin
identify them in their re¬

prospered during 1957 at
the expense'of cotton/the situa¬
tion was somewhat reversed dur¬

worth.

and

law

to

now

and

regulations

quired form in contracts, invoices,
advertisements
The

cotton

man-made

labels.

and

producers and the
companies both
lav/ will help their

fiber

believe

the

favorite

fibers.

to

adds zest

This

the merry battle between

the dif¬

Under

the

law

wash

imported prod¬
country of

and

ishes.

no-iron

and

wear

Doctor

there has

while

fin¬

points

Horne

been

stantial decline in recent years in
the

of

use

industrial

for

cotton

purposes, that loss has been fully
made up in the apparel and house¬
be hold markets.
He listed the 14
so identified as long as it remains
largest industrial uses of cotton
fabric even though finished in our
in 1958 in this order:
country.
But apparel made here

origin

long

as

in

change

from

fabric

need

abroad

latter

challenged

ruling has

being contrary
the intention of Congress.

to

The

as

Industrial

Largest

There
the

textiles

6%

the

more

the

we

Thread-_

Industrial

22

in

Medical

of

Tire

of

the
21

22

weeks

weeks

different
weeks

of

1958.

each

in

of

of

If
the

two years, the increase was about
13%. In the first three months of
this

year

sumption
wool

the

and

man-made

increased

44%.'

fibers

of

Electrical

low.

are

inventories

As

con¬

to

Insulation

51,000

Tents

46,000

Total:

14

Uses_.__

The

issue

8

the
top

have

small
ago, these

desired
production
departments
management expects us

those

are

items—some
blends

with

The

objective; but
purchasing job to make the
decisions as to what and

of

1960.

only a few
now big'vol¬

all

cotton

is
us

lines.

1

sion

CITY, N. J.

Joseph

—

Di

Fonzo has been appointed,
president of Capper & Co., 1
Exchange Place. Mr. Di Fonzo has

vice

and

fibers

been
as

with the

firm for

co-manager

time

some

of the trading de¬

partment.
Don

Glenn

manager

Trading

has

the

of

been

appointed

Western

Stock

department.

~

The firm also

the

announces

ex¬

pansion of its wire system to John

battle

fibers

in

Capper & Co.

cotton.

given

hand

on

the desirable
a

JERSEY

story

man-made

of

items

quantities and at the
cost.
It is easy for me to

DiFonzo V. P. of

Newsweek

of

\vay

a

depart¬
perfect
on hand

a

right

half

of the
big volume of wash and wear and
no-iron fabrics and apparel. Start¬
in

purchasing

always and to have
needed everything

by

300,000

interesting

each
facts

of 1959 and currently I see noth¬
ing that is depressing for the first

1,590,000

_

June

an

of

in the things

expected to do

when

P.

tells

for

the

task

all

1,290,000

Other Uses

25

ume

40,000 Shares

job

66,000
55,000
52,000

,_.

the

learn

The

is

ment

right

85,000

Hose

years

buy these securities,

of
net

when to buy. Definitely as to tex¬
tiles I am bullish for the balance

about

equal to

on

buy and in the things that

we

sell.

we

state

87,000

_

Laundry Uses
Tarpaulins
Awnings

"

with

that

it is

87,000

Cord & Twine.

Total

inventories
trasted

Fabric

&

that

to

and factors involved

con¬

23%; and
goods showed

increase

Uses_______

Cord

Machinery Belts

by

worsted

handsome

Bodies.

is

right

155,000

149,000
108,000
98,000
88,000

____

types

first

these

profits

12.8%

result of my studies, I have

a

us

to

Bales

163,000

_____________

increases

most

of

the

Shoes

Automobile

consumption was about
than
the consumption

first

use

of

all

in

In

1959 cotton

in

been

have

production

fibers.

Trends

of

As

concluded

and

Uses

,

Bags
Volume

Uses

1958

Cotton:

country of origin of

This

fabric.

no

Fabric must

woven

not show the

is

there

as

form.

and

gram.

out
sub¬

a

the

show

must

1951

showed

sales

on

-For

Many believe that increases in
wages and other costs will offset
ing 1958 and he is optimistic as to any savings in the cost of cotton
cotton for the current year--He is ^hnd hence one
safely cannot look
relying in part upon the favorable for lower prices because of the
reception of fabrics using popular new Cotton Price Support Pro¬

that

ferent segments of the industry.

ucts

fibers

earn¬

manufacturers 1 in .most

of

other

think and talk in terms of the new

some

among

the different

stimulating

and

it

better products in
have

calculated

the

has

J.

Keenan

&

Co.,

Inc.,

Angeles and Investment

many

of

divi¬

D.

America,

Inc.,

of

Los

Bankers

Washington,

C.

the fibers during the
last four years as follows:
among

Instruments, Incorporated

Per

Percent

Cotton

66

.

Wool

Common Stock
(Par Value $1

Per Share)

6

Rayon

&

Other

man-made

Acetate

Fibers

These

Price

$20

per

Share

figures

Daiwa

Securities

has

opened

6.5-9.8

2.6 to 3.3

149

Broadway, New York City.

do

tell

not

the

the different items in each

category.

interest
sion

as

than

a

Price

Trends

a

Co., Ltd.,

New York

office at

in my
to the

paper

is

items

still

few

years

ago,

way,

is

a

discus¬

are

lower

generally

functioning

and there

Caiif.

from

Joseph

—

conducting

M,

securities

a

offices

at

3927

the chief

likely price trends.

some

supply

usual

is

Kerckhoff.

that probably

prices are-higher .and apparently
will advance further, especially in
finished goods. The law of demand
and

FRESNO,
Diaso

business

assume

While

INCORPORATED

The

2.5 to 1.9
8.6 to 6.4

*

.

Opens New York Office

21-19

Joseph Diaso Opens

"

ftfc]l0NNELL&

26 to 22

steady)

(steady)

Daiwa Securities Co.

(Special to The Financial Chronicle)

I

'

*

whole story because the movement
among

Copies of the Prospectus may be obtained from the undersigned only hi States in which the under¬
signed is qualified to act as a dealer in securities and in which the Prospectus may legally be distributed.

(

Capita

Pounds

has not been uniform at all points
fiber




hand

on

weeks pro¬

only 3.4

an

as

August 20,1959

Branson

to

be
de¬ pared by Doctor M. A. Horne, Jr.
fiber and of the National Cotton Council of
acrylic fiber. All of America. Naturally, Doctor Horne
immediately should begin to is just a little partial to cotton. He
dacron

tion:

scribed

offer to sell, or a solicitation of an offer
The differing is made only by the Prospectus.

not.

inventories

amounted

ing
This

production lor 12.6 weeks

goods and print cloth has been
purchased for delivery during the
first half of 1960 at prices about

a

'

that the

first half of 1960

profit margins will continue
I am reliably informed

expand.

that

One of my friends has sent me
in the different age
predict a
growing per the sales and profit figures of
these
11
capita consumption of textiles as
publicly owned textile
that a particular fiber is present the teenagers grow in numbers, a mills for 1958: Bates, Burlington,
in the amount of 40%, it is per¬ situation now beginning with the Gannon, Cone, Dan River, Lowenmitted to have a variation from large numbers of postwar babies. stein, Pepperell, Reeves, Stevens,
United Merchants, and West Point.
37%
to 43%
of the total fiber
I have read with interest a re¬
These show a profit margin of
weight.
It
is necessary to use port entitled "Economic Outlook
generic terms. By way of illustra¬ for U. S. Cottons Markets" pre¬ 2.3% on sales and 4.8% on net

three

as

been sold

"Regardless

tions
to

in

the

and

ations

Fiber content tolerances are es¬

tablished

and
purchased by
the American shippers or mills.'

It'

purchases the same.

consumer

governments

Which

In

promptly and carefully.

general way, the law and the
regulations require identification
of the fiber contents in terms of

a

been

the

purchas¬

ing agents study the law and the

the

already

on

and regu¬

rules

I recommend all

lations.

to be cleared

through the ports on

its

final form

in

we

27%

the full

effective

becomes

March 3, 1960 and on June 1 the
Federal Trade Commission issued

ing on the cotton that is supposed

the

crop, the new law gives a promise
of more of the better grades and

be

bales are for longcotton and 9,000 bales are for me¬
dium length cotton.

interest

Ex¬

and

Of this 88,000

1.

Aug.

on

the cotton

here

arrive

to

79,000

bales,

will
us a

with asbestos,

is 88,312 bales. At the
present time, 'the entire quota has
the

re¬

months.

will give

that is used

cotton

get

Cotton

staple cotton, after
some
special
harsh

"On the long

of

selling at about 20 per
above
the more distant

Because it

no more

months.

are

pound

once

foreign cot¬
can come into this country at
price for a period
of 12

we

change traders seem to feel that
2b per pound is the proper differ¬
ential because July futures cur¬
rently

quota on foreign
this quota has

a

and

filled,

been

January

firm for

is

"There
cotton

textile industry can

operate.
new

fully acquainted with

"There

bales, contrasted with a long pe¬
average
free carry-over of
3,000,000

man

proved.

1,000,000

riod

about

margins further im¬

cleared

by the Government
the hands of mills ancl

owned

and

and

prices

that
not

manufac¬
situation as to

goods

cotton

1959
turer

been oversubscribed for

Carry-Over of Cotton

Free

progressive¬
to year, after

19,000 bales.

likely be 35b or more.

that Choice

as

ly lower from year

requires the Commod¬

law

ity Credit Corporation to offer for
sale all cotton it owns, including
be

much

support loans become

cotton,

market.

other fibers and inas¬
the support prices and

the

with

keep their cotton,, sell it to the
Government, or sell in the open
borrow

more

_

farmers

"A"

cotton

should
competitive

things

two

These

1960.

lav/

This

with a reduction in
of cotton beginning early in

.

Choice

Identification Law

longer staples,

middling inch cotton.
For 1960 both types of support

Products

Textile

1958

April,

in

orders

unfilled

of

1958,

.

,

to

.

.

(734)

10

are

in its
indica¬

2 With

Dempsey-Tegeler

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.

—

Chris¬

topher M. Haenel and Robert W.
Weiss

are

now

affiliated

with

Dempsey-Tegeler & Co., '210 West
Seventh

Street.-

-

-

Volume

190

Number 5874

.

.

.

The Commercial and Financial Chronicle

ation.

It

ance

of

it would have to devote its atten¬

worse

during the last two months.

tion

But it would be unwise

equities. For, it is feared,

London Market Unaffected

to

the
British

observer

reports

New York stock

break.

shrugging-off

surprising

London's

on

market's

off

states

the

psychological effect of the public's relief is expected to

offset any set-back to armament industries.

will

now

entail

a

Also reports substantial

that

Conservative victory in the autumn

a

election

British

equities in anticipation of
victory will not

Conservative

be

further rise in British equities, because of the defla¬

tionary policies which it will be

of

LONDON, Eng.
and

don read

—

When stock¬

their clients

in Lon¬

in their morning papers

Tuesday August 11 that there

on

was

break

a

the

on

pected

ences

Street's

lead.

then

Wall

precisely

the

anticipa¬

The

for

reason

resist

to

London's

influ¬

adverse

between

view

yields

American

and

on

equities.

is

gaining ground that
since American equities are over¬
valued
compared
with
British
a fall in the former need
necessarily be followed by a

equities
not
Paul

that

of

main

from Wall Street lies in the

British

it

was

Einzig

contingency
British

prevented

equities

from

getting the full benefit of
improved economic situation

the

of

mercy

Differential

Yield

discrepancy

would
Wall

that

the

at

capacity

Ex¬

follow

tion

all,

The

ex¬

London

Until

fact

noteworthy boom.

a

The
'

that

Stock

change

Wall

the

holiday season is well
advanced, the realization that the
London
Stock
Exchange is not,

was

generally
the

in

for

not

the

It

worst.

it

the

that

in

they

feared

setback

a

Were

Street trends might have resulted

previ¬

day

ous

Street.

after

in Wall Street

of

influence

and prospects and of the improved
domestic and foreign political sit¬

fall

in

the

discrepancy is

the

The

latter.

Wall

Street

sponding
tends

fall

to

without

in

of

extent

fall

a

corre¬

a

merely
existing ab¬

the

to

Until

This

forward

rule

in

corresponding

a

slump

in

industrial situation. For

it

everybody's

surprise

the

is considered

sume

that

Mr.

one

premature

public

to

be

who

believe

in

it

pending Washington visit would
really produce a noteworthy bet¬

of

Wall

There

Street's

was

selling.

prices

were

in

of

the

Wall

previous

Street.

recovery.

when

And

Wall

a

partial

following

the

on

day's

After

weak opening there was a

day

heavy

any

down, but to nothing like

extent

losses

"Black Monday."

sign of

Equity

marked

the

no

in

it

to

Street

became

steadier London staged a recovery
and for the rest of the week most

equities

became

steady to

firm.

ment.

cerned

the

with

affected.

10

beginning

were,

was

of

a

not, after all
slump. They

if anything, even more re¬

armament

But

effect of the

the

would

be

psychological

relief felt about the

mitigation of the cold war would
offset, and more than offset, that
adverse effect in the long run.

Inflation
Of

Yet

fall

in

a

don's ability to resist the adverse

necessarily

Conservative

autumn

election

mean

and

Net

proceeds

from

sale of

the

200,000 shares will go to the com¬
pany and will be applied to the

James

—

been

Securities

formed

with

Co.,

loans; proceeds

at

Broadway, New York City, to
gage in a securities business.

Max

Allentuck

is

note

for

Outstanding

forget

common

850,247

shares.

Supercrete and its subsidiaries
engaged in the business of
manufacturing
and
distributing
readymix
concrete
and
related
products. Its selling territory in¬
are

cludes

southwestern

southern

Manitoba

Saskatchewan.
St.

Ontario
and

earnings
equal

Headquarters

$339,065

of
58

to

cents

stock

common

Opens

1958.

In

all,

prices fall

conducting

a

been

on

tries

dividends at the rate of 2%

quar¬

the August

The

November

company

intends

a

1959

dividend, each of

2% in stock, will be combined and
will

Street, New York City, to engage

victory
not

need

had

a

securities business.

be

paid

to

stockholders

November. Purchasers of the

So

could

issue will be entitled to both divi¬

and

the

there is

3
This is not

an

offering of these shares for sale, or a solicitation of an offer to buy,
The offering is made only by the Prospectus.

of such shares*

their holidays
their invest¬

being. After
British exports
more

unused

327,042 Shares

compet¬

producing
indus¬

Union Bag-Camp Paper Corporation

in

Capital Stock

it would be possible
increased
at

(*6% Par Value)

output sufficiently
the

same

exportable
no

of

domestic
time

real danger

the

to

surplus.
of

balance

a

of

Price $44.75 per

payments resulting from

prices,

any

well

result of automation

the

meet

in

new

dends.

nothing

great many

a

to increase the

to

that

1959 dividend and the

Capital Sponsors Opens
Capital Sponsors, Inc., has been

And thanks to the existence

as

the

quarters,

time

of considerable

recent years,

of

Dec.

stock

1545

Broadway, New York City.

share

outstanding

paying

terly.

formed with offices at 15 William

will tend to become
itive.

are

(Canadian),

per

recent

has

company

addi¬

about
the

capacity in

and

southern

Boniface, Man., adjacent to

en¬

infla¬

they

for

if

a

like

a

stock will be increased to

securities business from offices at

in

company

Supercrete in 1958 reported net

is

Balance

6%

amount.

shares

100,000

the

350

be¬

power.

from

three-year

31,

Max Allentuck

of

stockholder who will

a

Winnipeg.

Inc., has

offices

sale

to

purchase

at

Form Action Securities
Action

the

Payments

ments

pros¬

further rise in

a

La.

releases

afford to depart for

be

even

also

and the

prices

that

the

of

to worry about than a para¬
doxical fear of inflation through

deterioration

in

McDowell

&

underwriting group on
19 which offered 300,000

will go

523 West Sixth Street.

It

worse

pects in general are not held
unanimously, however. A strong
minority persists in their view

lieved about the evidence of Lon¬

Blosser

an

shares of Supercrete Ltd. common
stock ?t a price of $7% per share.

from

Wade, Jr. Opens

SHREVEPORT,

consistent,

prices

investors

if

increase

Minority View

Optimistic views about the

headed

reduction of bank

X D,

was

idea

the

be

it

purchasing

demand
A

were

August

pave

it is not expected to depress
equities in the long run. Needless
to
say
industries
directly con¬

greatly relieved to find
that the sharp drop in Wall Street
on

would

for

pen

Dealers, investors and specula¬
tors

and

business from offices at 35 Maple
Avenue.

"Bpyle's

as

must

in

because

Prices,

po¬

large-scale disarma¬
But even if this should hap¬

way

tional

a

international

situation

litical

the

the

of

Garry
securities

Being Offered

Straus,

as¬

terment

effects

and

comment.

was

order

decline

a

tionary

Now

—

Edward

ago

known

fact

In

junior

a

Sir

Treasury's
chief
economic
advisor, Sir Robert Hall. Those

im¬

terial

psychological

by

put

the

thing
to

Khrushchev's

London Stock Exchange displayed
remarkable resistance to the ma¬
and

HAMILTON, N. Y.
Biggs is conducting a

victory..

first

was

Treasury Minister,
Boyle, three years
subject to sarcastic
Law."

Supercrete Ltd. Stock

August

Garry Riggs Opens

achieve¬

recently it

power.

that

was widely believed that
Nor is British opinion inclined
sharp setback in Wall Street was to share Wall Street's expectations
long overdue and that, when it of the effect of an improvement
would materialize, it would pro¬ in
East-West
relations
on
the

To

of

was the official
Treasury that in given
circumstances a rise in prices is
apt to be disinflationary because
it absorbs the surplus purchasing

lieve,

normal disequilibrium.

a

voke

the

to

view of the

uation. It

London.

deterioration

alleged inflationary effects of the
absence of a rise in prices.

regard

un¬

London

reduce

this

to attrib¬

pessimists are in¬ D. Wade, Jr., is engaging in a
with disfavor, securities business from offices at
even the absence of a rising trend
411 Lake Street.
in the cost of living. They argue
that rising wages in the absence
Three With Merrill Lynch
of rising prices would
mean an
(Special to The Financial Chronicle)
increase
in
consumer
demand,
LOS ANGELES, Calif.—Bartlett
which
again would mean more
Jack
B.
imports
and
less
Mackey
and
exports.
The Burnap,
Government's campaign in favor James L. Ronnow II have joined
of price cuts is subject therefore the staff of Merrill Lynch, Pierce,
&
Smith
to a certain amount of criticism. Fenner
Incorporated,

came

considerd

justified, and, it is argued,
in

the visible bal¬
has
grown

.

Conservative

a

true,

payments

Professional

clined

brokers

appreciation

maintained after the

ment

to adopt.

necessary

the

is

balance

lieved

a

opinion holding that

the

of

payments,
are
regarded
as
symptoms which no Government,
Tory or Socialist, could afford to
ignore. So it is fairly widely be¬

the factor of possible Cold War thawing, Dr. Einzig

on

deterioration

ute

of

Explains the divergent actio m

by yield differential, signifying over-valuation of American equities,

Commenting

the

impending inflation.
The recently published figures of
increased bank lending and in¬
stalment financing, together with

By PAUL EINZIG

the

the

once

Government is confirmed in office

By Wall Street's Setback

-11

(735)

a fall in
the authorities will
no
necessity to adopt

share

and

under

disinflationary

measures

after the

election in order to meet the situ¬

These Shares

are being sold to the Underwriters by Thf Louis Colder Founda»
part of the proceeds will be received by Union Bag-Camp Paper Cor¬
Copies of the prospectus may be obtained from any of the several
underwriters only in states in which such underwriters are qualified to act as
dealers in securities and in which the prospectus may legally be distributed.

lion and

no

poration.

All these shares having

been sold, this announcement

appears as a matter

of record only.

¥

New Issue

1

66,500 Shares
Cyrus J. Lawrence & Sons

Blyth & Co., Inc.

Certified Industries

Eastman Dillon, Union Securities &

Co.

Glore, Forgan & Co.

Harriman Ripley & Co.

Goldman, Sachs & Co.

Kidder, Peabody & Co*

Incorporated

CLASS

A

STOCK

Merrill Lynch, Pierce, Fenner & Smith

Lehman Brothers

Incorporated

Par Value $1.00 Per Share

Stone & Webster Securities

Smith, Barney & Co.

Dean Witter & Co.

White, Weld & Co.

PRICE

$4.50 per

share

Dominick & Dominick

W. E. Button & Co.

Hemphill, Noyes & Co.
Paine, Webber, Jackson & Curtis
Bache & Co.

A. C. Allyn and Company
.

Siuiit. Bean
40

&

Exchange PL, New York 5

Mackie, inc.
HiVnover 2-9000




A. G. Becker & Co.

Hayden, Stone & Co.

W. C. Langley & Co.

R. W. Pressprich & Co.

Tucker, Anthony & R. L. Day
August 19, 1959.

Reynolds Sc Co., Inc.

Francis I. duPont & Co.

E. F. Hutton & Company

August 18, 1959

Clark, Dodge & Co.
Hornblower & Weeks

Incorporated

Incorporated

Alex. Brown & Sons

Corporation

G. H. Walker & Co.

Walston & Co., Inc.

12

The Commercial and Financial Chronicle

(736)

\

.

set up

Public and Private Saving

Programs Have a Common Interest

law

non-inflationary environment
is stressed by Mrs. Baker in depicting the joint effort being made to
bring greater security to American families. Mrs. Baker finds itparadoxical that many people who save favor spending programs
that undermine their investments; stresses the essentiality of thrift
and savings to our economy; and reviews the influences that would
interfere with growth and prosperity. After summarizing the growing
need for capital and calling attention to its only source—i.e., sav¬
ings—the Treasurer terms it regrettable that some people advocate
policies ruinous to savings. In concluding, Mrs. Baker explains why
she fears the resumption of inflation, and she strongly urges sound
security and savings bond program, in a

I

fiscal

and

ment

risks, dating

back

centuries

many

the institution

Christ,

before
of life in¬

has

surance

developed

mm mm

WifM

of meet¬

ways

ing the finan¬
cial

i

with

many-

t

a

e

varieties
human
and

which

free

First

the

again

type of

for

concern

the

dividual

halting

which members of totalitarian

but
sci¬

Baker

Priest

life in¬

nary

Following on that—again
through a slow evolutionary proc¬

I

insurance

of

costs

ardous

the

disability,

sickness, haz¬
(going full circle

travel

hack to Phoenician
a

against

times), loss of

business partner, loss of a family

head during the children's minor¬

ity, loss of
to

name

other

income

only

private

a

at

retirement,
Possibly no

few.

institution

in

our

of

know

the

question

are

fond

surance.

ess—came

particular

in¬

needs
so¬

if not

Winant

which

of

to

Russians

the

American

words of John

the

the

in

answer

putting to

than

observers

better

no

first

Annual

Re¬

port of the Social Security Board,
of

which

he.

the

was

original

Winant

and

posterity," Mr.

our

asks:

western
world
provides a more
striking example of growth and
adaptation to the changing and
highly individual needs of people.

security? It is no
blessing to be had for the asking.
It is no
gift of the government

Vet

through

a

It

abstraction

insurance

have
never

grown

services, as they
and
changed, have

encroached

on

the freedom

©f choice of the participants to de¬

"But

is

for

what

no

definition.

the

an

occasion

address
of

by Mrs. Priest on
Equitable Life Assurance

.Society's
centennial
anniversary,
York City, July 28, 1959.

New

legislative
too

American

no

the

is

sum

a

mere

In positive

....

security
of

begins

security for the

citizen.

terms,
the

is

act.

nebulous

Security

with bread and butter. But

subsistence
*From

is

the

of

a

great
labor of

the

build better. We read
the pretended
authorities—

people

arrangements

they

may

be

down

set

as

by

Lenin.

but

poor

thrifty

a

unbeatable

re¬

possibil¬

ot

as an

no

circumstances

insurance companies
essential

function

a

national growth by

channeling

our

savings

people's

active

serve

per¬

to

combining and

investment

to

needs.

Savings do not automatically go
into productive investment. They
require an intermediary that is
skilled

in

savings

putting

be construed

to

or as a

as

solicitation of

of President

words

the

said: "Let

hower, who

companies

ance

maintain

the

areas,

insur¬
help

do much to

production, employment

Insurance

thrift

and

seeking

companies
savings

out

people

the

to

promote

constantly
educating
of providing

by

of

ways

need

the

for

that it

us

Eisen¬

not be
and all

today in the way of

means

fiscal soundness

is

highly posi¬

a

tive

and economic growth.

future,
presenting
the
many advantages of thrift, and de¬
veloping
attractive
and
con¬
venient

for saving

plans

nancial

and

protection.

because

take

we

ourselves

often

so

these

qualities for granted.
social security system itself,

objective. It is the advocates;
of unbalanced budgets and deficit
spending in

our

present economic
are
against

who

environment

than

rather

the

for

maintenance

growth in America.''

of healthy

America,

paradoxically,

today,

faces both

future of remarkable

a

Our
with

its

careful

provision for a
coverage
which
we

minimum

determined;

should
have

men

centuries
on

to

could

not
being without the

into

come

labor of

basis

simply

have,

citizen

every

two

over

and

a

half

perfect the scientific
can be safely

which risks

shared.

the factories and offices. It is pub¬

continuing, and on our accelerated
technological development, which
is

pers,
on

in

Because
nies

are

prise

life

With Government
insurance

engaged in

with

the

bringing

greater

American

families,

the

compa¬

joint enter¬
Government
in
a

security

they

Government

an

to

share
over¬

whelming important national ob¬
jective: the promotion of thrift
and

savings. Nations of thrifty
people in the industrial history of
the
world
have
typically
been
countries

noted

for

growth

and

Thrifty people are re¬
people. They tend to
favor sound and responsible Gov¬
progress.

sponsible

ernment, sound fiscal policies, and
dependable currencies. A thrifty

magazines and newspa¬
radio and

television and

on

movie

This advertising,

screens.

an

an

nationally known people, business
firms, banks, advertising groups,
national

and

local

publications,

and

thousands of volunteer work¬

ers,

is provided without cost to the

Government

as

service

a

interest.

It

in

the

directed

is

to¬

ward

making people savings-con¬
scious. It urges regular saving to
provide for the future.
Millions of people accomplished
their
der

first

the

savings

systematic

Treasury

un¬

To a
large proportion of them, savings
program.

twenty-five

next

will virtually double the
producing
capacity of America.
We are going to have to create
some
35 to 40 million new jobs.

years we

like one
school rooms

We shall need something

additional

million

and

million

30

have

shall

to

miles

of

thousands

of

are saving regularly un¬
payroll savings and bond-

der the

a-month

plans, and investment in
savings bonds has now reached
the total of $50 billion.

after

the

people

tially

end

their

World

of

have

War

increased

savings

vate

financial

past

three

through

institutions.

total

years,

II,

substan¬

pri¬

In

the

financial

saving of individuals has been at
peacetime

new

record.

Savings

ownership, however, has de¬
slightly. This is a trend

which

the

safely

be

Treasury
allowed

feels

cannot

continue.

to

new

thousands of new hos¬
somehow find room
million more automobiles

than 10 million acres

ernment

and

60

develop more
of bare land
streets
in - our

and

homes

spreading metropolitan areas. The
development and conservation of
water resources will be a major
task, and so will the development
an energy
base to meet a de¬

of

triple."

mand which may well

outlook is generally

This strong

foreseeable, and

held to be clearly

widely

is

it

business and

taken as a basis for
investment planning.

Unfortunately, however,
portant ingredient needed
to

outlook

this

im¬
to bring

one

realization

bonds, we sincerely be¬
lieve, have a place in the finan¬
cial program of every American
President Eisenhower has
and

proposed

will
to

bring

to build the new

securities
position
line with other
We are hopeful

that

will

that

be

new jobs
if our econ¬

the

needed

is to keep fully in step
growing population and
proved technology.
omy

will act on these
proposals in the very near future.

other dealers
Hindrances

lawfully offered.

1

to

with the nation, and

as

is

far

into

industry that

an

the

future—it

deeply concerned with
ences

pros¬

the nation prospers—since

essentially

looks

that

maximum

would

growth

any

interfere

and

is

influ¬
with

sustained

put over

inevitably

must

what source

are

25-year period?

a

Capital
The

answer

;

is clear. The neces¬

safely come from
place: savings—the excess
what
people earn over what
capital

sary

just
of

Provide

Savings Can

Only

can

one

Foremost
ences

the

is any

these
influ¬
threat to the stability
among

dollar.

It

has

been argued

it

Yet

is

a

regrettable fact that

few

people today are advo¬
cating policies that strike at the
very heart of the savings process.

some

Savings built this country. They
first from Europe when our
was new and had very lim¬

came

nation

ited financial resources of its own.
Then

prosperity.

of

From

going to accumulate the neces¬
sary capital for a doubling of out¬
we

Prosperity

grows

it

question

raised:

with
im¬

they spend. There is no other ac¬
ceptable source.

Growth and

Since the life insurance industry

pers

The

be

these

Congress

in

plants and equip¬

provide

and

ment

investment

an

is

of proving inadequate.
This is the large volume of invest¬
ment funds that will be required
real danger

our

Savings

of
high¬

hundreds

and

ways

for

homes.i We

more

build

and trucks. We must

nearly in
savings outlets.

Bertner Bros.

the

"Within

for

back

Brand, Grumet 8C Seigel

University of Houston:

class of the

particularly under the
payroll savings plan, contributed
substantially to financing the war.
Today more than 8 million people
employed in industry and Gov¬
program,

feel

Maltz, Greenwald 8C Co.

told the graduating

recently

ury

bought. A great ^expansion of the

Secretary
Anderson has forcefully presented
to the Congress various revisions
in savings bonds terms which we

or

little further into the

a

pitals,

recently

Copies »f the Prospectus may .be obtained from the Undersigned
or
brokers, only in States in which the securities may be

Looking

future, the Secretary of the Treas¬

bonds represented the first securi¬

family.

Share

production and distribution.

ties of any kind that they had ever

bond

Corporation

rapidly bringing new products
more
efficent techniques of

and

which enlists the services of many

public
Joint Enterprise

period of
prosperity

licized

more




I cannot answer this better than
in

economic growth and
extending far beyond
any present levels of production,
employment and economic wellbeing. The basis for this expected
prosperity rests both on the un¬
usually rapid population increase
that has already occurred and is

(Par Value 10(f per Share)

Company, Inc.

to
old-fashioned
they are against
growth.'

maximum

misled. A balanced budget

investment

•

Common Stock

Robinson 8C

and

idly
adhering
concept"—that

tive

clined

Herzfeld 8C Stern

insist

Bond program during the 24 years
changed conditions. Old problems
of
its
existence
in
promoting
have to be freshly stated, estab-;
thrift and saving in many forms.
lished safeguards to be supplanted
Year after year, the Treasury has
by new."
been carrying on the most extenThe dynamic power of free in¬
sivfe
campaign
for
saving
ever
stitutions— their
adaptability to
known. Savings bond advertising
changing
conditions—are .what
reaches into every city and village.
need stressing, apd all the more
It goes into the homes; the
schools,

earlier, "security is hot static. The
of
the
decades
brings

175,000 Shares

per

of its effect on prices.
people charge that those
on
a balanced budget
fiscal soundness are too rig¬

These

who

conversion of savings into produc¬

a

$3

be helped by
spending, re¬

virtually unanimous in their ap¬
praisal of the "golden 60s" as a

I referred

march

August 18, 1959

Price

can

Government

position

the

taken

growth

promise and an economic challenge
of serious import. Economists are

New Issue

Extrudo-Film

little

gardless

effec¬

tively to work. By facilitating the

prosperity can
inflation.

and
by a

have

Others

example,

for

some,

•

,

fi¬

Winant said

all," John

report to which

offering of these securities for sale,
offer to buy, any of such secur¬
ities. Tbe offer is made
only by means of the Prospectus.

offer to buy,

by
growth

boosted

be

that

form

•

•

recently
that

more

With
the enlargement of sav¬
ings opportunities in other forms

Ibis is under

'

We at the Treasury are proud of
the part played
by our Savings

the

with
is

single

and

"Above

in

After

noting that one of the ob¬
jects of our Constitution is "to
secure
the blessings of liberty to

has

sources

.

.

with

even

resources,

ities.

our

construct, to improve, to

doctrines

the

Marx

chairman.

ourselves

;;

_

of

hew to every dot and comma

have

impossible to understand.

ordi¬

based

his

and

cieties often find it difficult

entifically

of

so

this

is

It

velopment—
sure—of

for

as

mands.

de¬

security for

of the Soviet

efforts

take

we

can

with repugnance of

being highly appro¬
priate in a variegated society such
as
ours,
with its many different
individual requirements and de¬

of

legislation

one

every

change, to

variety of the goods of¬
modern department

this

And

govern¬

'secure'

man

achieve

to

institutions

men—to

our

granted

occur¬

came

in

d

risks

rences.

the

a

"All social

Behind

private purchasers now has al¬

most

make

can

himself."

suited to
their
with
protection
against a limited and specific risk,
life insurance coverage available

fered

other act of

any

or

on.

protection
best
needs.
Starting

to

even

is intended to do, is to fur¬
nish the individual a solid footing

stores.

burdens

ass o c

and

amount

Security

thought

hypocritical though

the

termine

Social

this

made

he said.

do,

monetary policies.

beginnings

its first small

Since

the

of

second

explicit. "Neither the present

nor

—to

in the field of marine

the

Altmeyer,

grow

may

people blessed with abundant

Life

Board,

and the government's social

of private insurance,

importance

nation

naturaj

trol."

more

The

by

.

chairman

of the United States, Washington, D. C.

Treasurer

society
through
which the things we cherish are
safeguarded against the hazards
we,
as
individuals, cannot con¬
and

Arthur

PRIEST*

By HON. IVY BAKER

by business, by the govern¬

ment,

1959

Thursday, August 20,

.

.

.

,

lated

capital began to be accumu¬
from
industry and
trade
Eastern

along

the

these

funds

before

seaboard—and
long

became

Volume

190

Number 5874

The Commercial and Financial Chronicle

(737)
the basis

of

America's

industrial

expansion.

Now,^ almost

every American
of savings and
investment funds. According to a

family is
recent

made

survey

liquid
the

by the

Fed¬

Board,
covering
only, three-fourths

assets

the

Treasury. There in the lobby was
the
huge
clock-like
mechanism

ment, deficits.

which ticks off

spending units covered in
had

survey

savings in
liquid form and a surprising 20%
had liquid assets of $2,000 or more.
Savings
habits
are
indeed
some

deeply ingrained in the American
We

economy.

must

recognize,

however, that the savings process
is hot an automatic feature of our

type of private enterprise system.
As President Eisenhower has

em¬

sound

A

source

Reserve

eral

of

a

of the inflationary dangers result¬
ing from continuing large govern¬

is

in

deciding

are

merely
most

at

tained growth.

the

an

to

urge

past

spend,

not

that

year

to

during

appeared
savers

were

becoming seriously disturbed over
prospect of further inflation.

the

This

particularly

was

observable

in the shift of demand away from

bonds

into

and

personal

stocks.

incomes

if

year

are

last year, net

ment deficits

the

recessionary

first

quarter of 1958.

its

funds

to

Paradox

The

and

all

others

con¬

cerned with the future of America

have

interest

common

a

in

halt¬

sheet

for

an

nately it has not
loss of confidence

posits,

annuities,

fixed

income

erally.
that

An

extended

a

savings de¬

and

most

other

investments

gen¬

people

paradox

are

is

continuing

to. accumulate these dollar invest¬
for

ments

of

the

•

make

the

Anderson

in

effect

the

nation

increase

com¬

credit

the money

crease

the threat of under¬
value
of their in¬

vestments.

recent

have

been

months

danger

attempts
minimize

to

particularly

inflation,

of

by those who would increase
ernment

fact

held

generally

the past year

that

gov¬

spending programs. The
prices and living costs

that

have

in
the

stable

is cited
inflationary

the

over

evidence
trend has

as

lost its force.
basic

The

however, show

evidence.

contrary

panies,
savings
funds, and so

They

indicate

that price inflation is still with us,
and that inflationary pressures are

of

conscious

the

determine the

insurance

that

action
these

tors

a

•

♦

-

noted, for example,
although
wholesale
prices
and living costs have leveled out
during the past year, both price
indexes have topped their former
It
that

their
all

dollar

by small margins
period. More impor¬
the apparent stability of
the price indexes over the past
year has been due almost entirely
to excess supplies of farm prod¬
ucts.
Declining
prices of
farm
record

during
tantly,

,

highs

this

products

of

and

continued

savings

foods

advances

have masked
in

other

It is

and

of the

destroy

ing

and

that

could

insurance

is

a

very

sidered

industry

has

been

the first to recognize, there

obvious need for a con¬
program
to reverse the

drift toward loss of confidence.
.

During the past two decades the
of the dollar has fallen by

value
more

than

50%; but there is

cer¬

tainly lift1" """i^ral understanding




the

to

In

if

of

this

base from

forces

with

solution

a

the

Demo¬

and

idly by

the

fear

of

future

inflation

generated.

of the debt
to

of

in

pur¬

invested

is

the

security

the

maintenance

of the

confidence

resolve

financial

to

in

of

our

maintain

systems.

Because

our

position as a leader in this
community of nations, many coun¬
tries

hold

with

us

have
the

large

and

in

ments

large

real

a

Which

in

deposits
invest¬

securities.

our

way

dollar

have

therefore

States

They
in

concern

the

United

fairs.

manages its financial af¬
In asking to have the arti¬

ficial

restrictions

we

at

removed

from

debt management legislation,
seek to assure the people both

home

sistent
the

and

abroad

the

manage

debt
the

with

dollar

that

in

a

con¬

of

preservation

international

an

as

will

we

way

standard of value

levels of busi¬
activity and allow a situation

be

to

collective
sound

our

Ways

the

"The
tinue

to

Administration

will

con¬

earnestly urge appropri¬

ate action to obtain

adequate flex¬

ibility in the management of our

the

management

actively contribute
inflationary pressures by being
can

debt.

is

This

matter

a

of

such

great importance as to require

the

best efforts of all Americans on

a

bi-partisan and national basis."

and

in

perception— "
moral

mind—

This advertisement is neither

new

American

an

offer to sell

nor a

solicitation of offers to buy

The offering is made only by the Prospectus.

a

that

we

will

of

NEW

any
,

of these securities*
V

August 19. 1959

ISSUE

re¬

a

sud¬

the

in

analysis from the
citizens.

Company Inc.

ex¬

6% Convertible

mankind.
Dated August 1,

Junior Debentures due 1984
Due

1959

August 1, 1984

(Special to The Financial Chronicle)

•

PORTLAND,
Kieft

is

Oregr

Convertible into Common Stock oj the Company,

Douglas

—

affiliated

now

with

>

deemed, at
at

their

a

unless previously

principal amount) of $16 per share from December /, 1959

through the opening of business on December 1, 1969
per

re¬

conversion price of Common Stock (with Debentures taken

and at $18.50

share thereafter until maturity. These prices are subject to adjust¬
ment

under certain conditions.

DENVER, Colo.—John F. Craw¬
Claude

and

ford

become affiliated

M.

Mayes

have

with Investment

Bankers, Inc., First National Bank

Price 100% and accrued interest

Building.

Joins

Copley & Co.

(Special to The Financial Chronicle)

DENVER, Colo.

Earl S. Bog-

—

is now affiliated with Copley
Company, 818
Seventeenth
Street.
He
was
formerly
with

gess
and

country.

individual

American & Foreign Power

With Zilka, Smither

.

■j

the

security

$15,000,000

7;

..

the

make

but will

autocracy,

the birth right of all

Copies of the Prospectus may be obtained from any
writers

of the several under¬

only in States in which such underwriters are qualified to act as
which the Prospectus may legally be distributed.

dealers in securities and in

Hathaway Investment Corp.

It

legislated into existence,
by Government

Joins Samuel &

maintained

nor

Administration

follows:

Government

tend its frontiers until it becomes

other measures
stability of the
destroy the

Americans

stems in the last

of

Secretary

"We have tried to make it clear

people."
wisdom, with patience, and
self-discipline, we can and I

believe

could.

they

poor

free nation, this confidence

a

deadlock

of

that under present restrictions the

With
with

economic growth

our

of

the

fear

in

the

the hands of the American

time

national

our

future

the
in

basis of both

cannot be

clearly, there is nothing
in this picture to warrant com¬
placency over the inflation out¬
look. On the contrary, as the life

us

toward

threaten

actions

Very

found

advice

7

emergency.
An indifferent
attitude toward imprudent spend¬

last summer,

Nothing to Be Complacent About

elastic

the

of

to

den

confidence

among

"

which to meet the strain of

and

later

of

bring
generating

loss

ac¬

_

original

not

can

society » ruled
by tyranny. Their voices are heard
only in a climate of freedom. Let
us remember George Washington's

dollars

'

particularly

a

to rise, and wholesale
manufactured products
have been
increasing noticeably

highs since

of

o n

vital

international

time of rising

a

and

take

step forward."

ti

to continue in which both the fact

who

and

a

at

the

mind,

moment

that

a c

proposals
matter of grave concern. The

ness

elastic

of

men

moral

the

in

;

.

tc

of an Inflationary
Society Zilka, Smither & Co., Inc., 813
Southwest Alder, members of the
inflationary society is a dis¬
Pacific Coast Stock Exchange.
organized and an inefficient one.
It is a very poor base from which
Two With Inv. Bankers
to
conduct a large-term
world¬
wide struggle against those who
(Special to The Financial Chronicle)

continued

These trends, of course, are
reflected in retail prices.

.

benefit

An

prices

of

live

of

Evils

dollar

new

a

taining

Nation cannot afford to sit

original
action,
their eyes wider

nationality—namely, to

are

inves¬

contribution

us.

prices.. Meanwhile, wage rates in
manufacturing
industries
have

to

and

"of

to

M.

would

free world

the

to the -right choices to insure that free¬
institu¬ dom will not retreat before the

however,

They
helping to protect the value

of

Secretary

yThe action of the

country
original

than

men

.

be

may

men and women

Men

com¬

,

individual

as

valuable

of

ury

Main¬

take such

"We have tried to make it clear

that

derson.

should

dollar.

by Treas¬

Means Committee this morning in
connection with the Administra¬
tion's debt management

is

open

sound Government financing.
are

ment

come.

this

that

as

cern

Congress.
Secretary Anderson's full state¬

people

can

a

purchase Govern¬
securities, they are making

most

savings against
chasing power

cratic

reconstruction

in

needed

the

to

of free¬

course

who

can

able to

are

make

we

troubled

perception

the

consistent with
.

our

well

as

Government

would continue to seek

pension public. Liberty and self-govern¬
properly ment, he said, are "finally staked
fiduciary obli¬ on the experiment entrusted to

not

area,

that

extent

tions

pledged

and,

will help guarantee their

and

inflation,

savings

tions

could

fact

their

on

we

banks,

obligations.
this

In

future

trial,
today

on

the

return

second,

situation

a

both

on—are

their

is

is

millions of

many

we

were

•

continuing.

•!

choices

the

what

gations to those whom they serve
and they can pursue no course of

ment

facts,

life

—

outside

about

days toward the end of his life,
Ralph Waldo Emerson wrote that

supply; it makes

held

life

and

In

to

institutions

There

of

way

may

„

debt

fair

interest

ceiling on
long-term

this

.

more

"We have tried to make it clear
that- the Government has a dual

41/4%

:

cherish from the

in-the generations.to

use
of savings accumulations al¬
ready in existence.
V
!
The problem of maintaining and
enlarging the proportion of the

Federal

Robert B. Anderson

appraise the tra¬

we

Borrowing considerations
from the pool of investment funds,
human race
on
the other hand, does not in¬
mind, men of

commercial banking system is not,
of course, a simple one. The thrift

the

Our

goods.

which

mining

moment to

a

-

not

relation

1

rarely occurring—are of
value. They force us to
stop

dom for

invest¬

spending in the future
while
favoring
and
voting for
government policies and programs
carry

it.

adding $100

without

in

make

financing,

which, the shorter it gets, is
nearly like money.

responsibility for 40 million sav¬
ings
bonds
holders.
First,
we
should see to it that
they get a

e

Robert B. An¬

past, in the light of the problems

purchase. As
has
stated,

like

to

confined to short-term

long-standing

Bonds elicited

which we face in the present.
Let us make no mistake about

.

does

failing

elimi¬

the expression
of great con¬

receive

*;

ditions which

there

requested,

It

are

heritage not

or

request

the

rate

too

for

balance

other

any

will

down

nation of t h

us—

which

born'—

.

in

economic

many

to

is

its

amount

million.

out

to

simply

on

being

such

million,
subject
to
reserve
re¬
quirements, to the money supply
of

Fortu¬

currency.

will

the

$100

this

in

nation's

bank

Secretary

ing this impairment of confidence
the

all

re¬

from

is that t;.e

pressures

Government

remind

of

least, Administra¬
for

why I feel that occasions
like the Equitable Life Assurance
Society's centennial anniversary—

commercial banks increases infla¬

tionary

turning
tion's

That is

borrowing from

reason

ment

government

only by

borrowing

18

school—the

are
making
today.

7

spends

commercial banking system,
is real inflationary pressure.

Aug.

for this year at

rate of

vote

Ways and Means Com¬

of

as it
down to us, but as we have
shaped and
changed
it by the
choices and
decisions which we

about

process..

government

the House
mittee

game

economy

comes

simple

be obtained

can

switch

The-life insurance industry, the

the

sorting

say,

An Economic

actually

very

a

Our young peo¬
children

own.

their American

con¬

the difference in order to pay
bills. To the extent that these

the

in

our

now

the

to

responsibilities

uniquely its
still in

row

mercial

than

to

at the

now

serves

ple

than it takes in, it' must bor¬

more

quarter

greater

a

When

saving of individuals in
no

maintain

taking place

has

represented by continued govern¬

the

was

to

are

danger

financial
first

we

as

these, the net in¬
population which

our

observation

desirable to

seems

of

The

Although

this

well above those of

time

group.

through

Evidence

save.

af¬

can

same

savings required for
tinued sound expansion.

History has taught that inflation
creates

the

A balanced budget
requires hard work, under stand¬
ing and compromise, but it is es¬
every

confidence in the value of the dol¬
lar and confidence in the capacity
of our economy for sound and sus¬

and

one

everything that

flow

place in a climate of confidence—

country

prosperous

ford

all

in

The

—

before, but not until then had its
symbolism impressed me so deep¬
ly. Eacn generation—as Thoreau's

the

even

Ceiling Bill

WASHINGTON

person every 11 seconds.
I had often glanced at this
clock

things that
things that are
Not

every

one

between

desirable.

of

crease

afford—

cannot

necessary and

sential

only take

it

birth

a

emigration, and finally,

ford

funds for future

can

and

result

what

ItidersoEt Expresses "Grave Concern"
Or Killing of Bontf Interest

ever-changing

7¥2 seconds, a death every 20 sec¬
onds, the record of immigration

pline will mean facing reality in
selecting what the nation can af¬
and

our

present—recording

calls

program

particularly
for
discipline
and
prudent responsibility in govern¬
ment
spending.
Spending disci¬

phasized, the decision to put aside
use

fiscal

13

Engler Co.

The First Boston

Lazard Freres & Co.

Corporation

(Special to The Financial Chronicle)

decree.
One

of

the

American

tury
reau,

of

most

our

writers, Henry
once

thoroughly

nineteenth

observed

David
that

he

cen¬

Thofelt

COLUMBUS, Ohio
Butler is

Samuel
East

now

&

—

Engler

Company,

Street.

Broad

Gordon B.

He

was

16

merly with Westheimer and Com¬

of

pany.

standing at "the meeting
eternities, the past and
future." I was vividly reminded
of this observation one
morning
recently when
keep

an

partment

just

I

was

of

down

in

Commerce

the

street

the

De¬

Charles

Building,
from

the

in

E.

Thomas

York

6th.

Kidder, Peabody & Ct*>j

Carl M. Loeb, Rhoades & Co.

Merrill Lynch,

Pierce, Fenner & Smith

Smith, Barney & Co*

Incorporated

Charles E. Lucke, Jr.

hurrying to

appointment

Goldman, Sachs & Co.

Lehman Brothers

for¬

himself
two

Blyth & Co., Inc.

affiliated with The

City,

Lucke,

Marsalis

passed

Jr., partner
Co., New

&

away

August

Stone & Webster Securities

White, Weld & Co.

Corporation

Wertheim & Co*

Dean Witter & Co.

II

would

Economic Mobilization

. . .

Planning

Professor of Economics

upon

W. W.s I and II experience, Prof, Slesinger reviews
partially and fully mobilized

be

considered

are:

(J)

(2)

and

in procurement;

centralized detailed

nations

The

conduct

of

war

requires

capital facilities, producer
goods—be withdrawn from their

national security, both in times

mal civil¬

ian

uses

and

!

and

fed,
and

Mobilization

What may

i p m ent
supplies

q u

and

that

are

essary

duct

of

nec¬

'■

.Av.'

to con¬

from

re¬

Dr.

R.

E. Slesinger

of the

nation.

With the spread

of global

warfare, especially beginning with
World War I, more attention has
been given to the economic prob¬
lems that stem from war, its prep¬

mobilization

means

at

which the

by the degree to

any

factors

the

of

being utilized.

pro¬

economy

The outer lim¬
mobilized are

its to what may be
set

sources

be achieved by

economic

are

only
the

Domestic

particular time will be influenced
ductive

a war can

come

the

on

Economy

and their

men

War

The Pressure of Economic

equipped. The

all

by the available

resources

within the

economy.

is

utilizing

kinds

the

economy

not

be achieved,

stages

early

the cessation of armed hostilities.

Troops
be

clothed

assure

the gross national
United States, for

reconversion or
period following

demobilization

for

side by side.
defense

program may be appreciated when
it is expressed as a percentage of

the

during

the

The problem is
that both of these goals
living.

The size of the national

the

during

only

the period
of defense
"build-up" preceding this time

require¬

must

not

during

-

fulfilling mili¬
ments.

action

for

stages of armed conflict, but also

be diverted to

tary

to

may

Economic mobilization thus calls

power,

nor

of

and peace.

war

and distribute
services needed

and

goods

"normal"
that certain basic essentials—man¬

is to indicate preference.

"cold

II

The

reflect the

will

needs

These

re-

th™allief na^tons

as

get the materials tha* are
needed when they are needed, at

t0

Sfv 7*°^ ^

In accepUng

yishrecognized
lrene^m
that

coegni^cea^usrteqbUeir"'to
=

essent ai c
vilian needs also be assured. Thus,
certain

that

quir ,s

—1

economical

product. In the
during World War II the proexample, in the
gramnung of civilian requirements
the post World

of
war,"

defense

the

made

was

essential feature of

an

procurement is
government

of

to enable the national

the like.

„,^ thl Liuta™ ? J2i

mission

the wartime effort, even in the
cost approximately 10%
face of tremendous military nenational product. This,
cessity.
it should be pointed out, involves
One of the
most difficult rethe economics of partial and not
total
mobilization as contrasted quirements
problems, concerns
manpower.
Just how many men
with a "hot war" period.
be
called for
the
armed
Sooner or later, under condi¬ may
forces without stripping the econtions of total or partial mobiliza¬

method.

nrocurement

hnwpvpr

ti

^ult

'

lome

ices

h

hj

objective
migbi

operations

If

Attention
on

the

interruption.

without
is

focused

bottlenecks

immediately

and

steps

are

labor force

of its necessary

omy

be

cannot

with

answered

matic certainty.

dog-

ime

the

miiitary necessity
cost considerations

of

into the background.

tion, shortages appear in particu¬
lar materials or components and
difficulties
arise in
maintaining

mav

pu^ases a"

because

program

force

The

cen-

7During war-

of the gross

of

its

4—Procurement

parts, end products, manpower,
of most
facilities, fuel, transportation, and
continues to be available

produce

to

of programming.

it

But

accordingly.

allocated
must
be

be

would

goods

that

remembered that priorities do not
produce goods; all that they do

bulk of the resources

the

control involving the latest analytical tools

and techniques

priority of different activities and

-

application of mathematical programming which was begun by the
Federal Government in 1948. The economist points up the difficulties
in

1—Requirements

have been spent
In order to know what is the
for end products which cannot be
scope and content of mobilization
consumed by the civilian popula¬
it is
essential that the requiretion, and millions of man-hours ments be outlined. There will be
are
assigned to making weapons
requirements for raw materials,
of war or learning how to handle
semi
finished goods, component
them.
In spite of this,, however,
national product

special factors he believes must

avoiding waste

ratings would indicate the relative
of dollars worth of the

Billions

unforeseeable future may require
reversing the traditional economic practice of concentrating on the
peacetime economic relationships and of treating wars as abnormal
in view of the impact of defense economics on fiscal, monetary and
Economy, He also suggests that the

international economics. Some of the

ratings were given too generously
and there were too many classifications of priorities. The original
thought was that a series < of

nomics.

what economic mobilization entails in a

Thursday, August 20, 1959

The experience of most nations,
especially the United States, with
priorities during World War II
revealed a number of difficulties.
To begin with, priority preference

in being, and mo-

combat power

measures
concerned
inclination. In fact, bilization
the
fundamental
economic dis¬ with the allocations among the
turbances
of
today,
especially branches of the Armed Services.
Although many of the economic
those
concerned with monetary
and fiscal policy and international problems of a mobilization econeconomics, are, to a large degree, omy are not unlike those of any
economy, there are certain special
the direct result of defense eco¬
factors that must be considered,

University of Pittsburgh, Pittsburgh, Pa.
Drawing

to be little reason to

seem

follow such an

By DR. REUBEN E. SLESINGER

e

and Financial Chronicle

The Commercial

;(738)

authority must
regulations that
are fair to all types of producers,
it may even go so far as to permit
some higher
prices to marginal
procuring

devise

general

producers in order to
keep a
diversity of supply sources. The
high prices act as a subsidy to

Elements of poli- these producers. Producers above
the margin may be given special

tics also enter to dictate who shall
be

subjected

military

to

and who shall be deferred.

service inducements to encourage them to
In the make necessary expansions.

If extreme caution is not exercised there may be a considerable
amount of waste in military protary requirements will be less than procedure is not impossible, al¬
about
30%
produced curement.
This stems basically
aration, prosecution, and repercus¬ if full employment exists.
For though this would require a great services,
It is goods destined for civilian use, from the duplication of procursions. War is the most disturbing example, a very important factor deal of centralized control.
force that interferes with the func¬ that allowed the United States to somewhat
improbable that such and about 50% was engaged in ing authorities and from differ¬
resources

near

the

level

of

taken to

full

employment the pressure of mili¬

remedy the situation. An
over-ail scheduling

integrated

United

States,

example,

for

ing

World War II

the

labor

force

dur-

about 20%

of

in the armed

was

ences of
a
minute nature in the
direct wartime production.
military
production centralization would be tolerated
design of products. During World
days of World in a period of partial defense mo¬
2—Production
War
I
many
wartime contracts
War
II
without
impairing the bilization such as is characteristic
for called for a cost-plus-percentagethe
Once
requirements
overall efficency of the economy of today, particularly in any free
come scarce, labor is unavailable,
of-the-cost price. Such an arwas
the fact that a considerable economy. Only in a period of total goods have been determined the
next problem is producing these rangement undertook to pay the
and consumer goods are rationed,
segment of the total productive war might the advantages appear
to mention but a few of the direct
goods.
Production
problems
are
producer
his costs plus an agreed
capacity was operating at sub- sufficiently strong to offset the
economic consequences of war.
complicated because of the special upon percentage of his cost to
tantially less than full employ¬ drawbacks.
nature of military
goods.
Some cover
entrepreneurial
returns,
ment.
This made it possible to
Government in a period of arma¬
In order that an economy may
of
these
problems
include
the Such a plan ■_ often became unhave both guns
and butter.
In ment production is faced with the
endure in spite of these many dis¬
production of new items, the use economical
since it gave
no
turbances, it is necessary that its Germany, on the other hand, there tremendous task of guiding in¬
of
substitute
materials, changed encouragement to efficiency in
was little excess
resources be mobilized for the ob¬
capacity, and so dustrial mobilization and of wise¬
that
a reduction in costs brought
standards
and
specifications,
jective of preserving national se¬ the domestic economy was forced ly allocating the national product
with it a reduction in the amount
sacrifice
to
a
considerably between the defense effort and changed designs, accelerated de¬
curity. The mere accumulation of to
of the "plus" to be added. These
livery
dates,
and
scarcities.
and
resources, manpower, and finan¬ higher degree; hence, guns in lieu the maintenance of civilian
Time becomes the keynote in contracts
of butter.
cial capacity alone is insufficient.
aroused considerab e
allied
requirements.
This
is a
These sources of potential strength
opposition so
ey
Until the period following World problem of balancing and appor¬ guiding military production. There P^lic
are
countless
steps
that
must
be
Idom
were
used during Wor d
require integration, that is, it is War II, there had been an incli¬ tioning resources between differ¬
followed
before
ent
goods
that
are
During
necessary that there be effective
war
nation in the analysis of economic
programs.
Immediately prob¬
programming for economic mo¬ problems to treat wars as abnor¬ lems arise connected with the required are produced. These in- Jie Pr°curing
bilization which may be described
blueprint
drawings
and
a neg°tiated price which was
balancing of various security pro¬ volve
mal and to concentrate attention
the result of
open
bidding and
as
the
coordination
of
the
re¬
designs,
manufacturing
models,
on
peacetime economic relation¬ grams, the coordination between
negotiation
between the govern¬
sources—physical, human, finan¬
allies, the balance between meas¬ machine tool production, alloca¬ ment and the
producer.
ships. However, since the end of
cial, and otherwise—of the nation
ures
for
security and those for tion and procurement of necessary
Many additional complicating
World War II, and probably for
national well-being, the allocation materials, management engineeralong with its materials, facilities,
and wealth for the purposes of the
unforeseeable
future, there of the military portion between ing, and finally actual production factors enter the picture. Howof
the
end
item.
During
the ever an approximation to the real

of any economy.
Ocean
transportation is interrupted, es¬
sential imports either are curtailed
or cut off, basic raw materials be¬

tioning

expand
during

its

the

early

that t

ti^t
most of
contracts Pravld d

World
time

War

of

because

All these shares

having been sold, this
as

a

matter

announcement appears

of

of record only.

a

II,

lost

was

considerable

a

these

of

..

,

a

Magnaplate Corporation

Price $4.00

per

per

use

cision

help

that

are

to

assure

parts for
produced.

of

other

and

gages

pre-

instruments

measuring

to

to

satisfy the demand for
replacement parts. Although differences

Common Stock
(Par Value $.50

items

machine

in

made

or

may

only be minute, these may
be
enough
to
cause
the
malfunctioning of a strategic piece of
military equipment with damaging results.

Share

be obtained from the Undersigned

brokers, only in States in which the securities

may

or

duced

other

♦u116
the

be lawfully offered.

is

resources

determination

civilian

Ainsley Bldg.
Miami 32, Florida




Company

Casper Rogers Co.
Exchange Place

New York 5,

N. Y.

may

of

by

be pro¬
the vol-

available
and
of
essential

When

needs.

voluntary

materials

the forces of the

through

market does not

correspond to what is required for
national

40

what

determined

allocation

Robert L Ferman &

j

security

sort

some

of

mandatory priorities and allocation

to

system usually
divide

among

ments.

the

the

is

relied

available

conflicting

general terms, the

to determine which

course

action

of

relative

to

set

the

problem

alternative

is most effective

of

pertinent

objectives. Consequently, in
formulating the problem, a measure
of
effectiveness
must, be

suitability must

specified and its

b*

estabiished.

items

3—Priorities and Allocations

Copies of the Offering Circular

^

being studied. In

economic sector

Applying Mathematical
Programming

may

share)

Ultimately
dealers

situation may be obtained by
means of an
idealized mat matical or analog mod e
t e
economy or of the pa t cu
most

.

seeks

Rapid strides have been made in
the

General

.

also

constant flow of spare

those

75,000 Shares

amount

steps.

.

Production

August 19, 1959

many

duplication in connection with
number
„.

New Issue

valuable
instances

much

in

upon

goods

require-

the effecunder study
as a function of a set of variables
at least one of which is subject to
control. The general form of such
The

model

expresses

tiveness of the system

a

model

might be
^

mm

/

Jp

yj

\

wbere jr represents the effective0f the system, x, the variables
of the system whkh are subject
t
control, and y, those variables
w h
'
t subject to controi.
Th

restrictions

varjables

may

on

vaiues of the

be expressed

supplementary set of
and/or
inequations.
number 0f activities is
.

in a

equations
Where

Continued

a

to be peror.

.

on

page

Jy

Volume 190

Number 5874

.

.

The Commercial and Financial Chronicle

.

(739)*

Connecticut

and

have all-weather flight capability.

Trust Company has announced its

half million dollar bank and office

CHA,
which
has
experienced
rapid growth since starting passenger
service less
than three

building

years

intention

ment

build

to

in

Hartford's

Bank

six

a

Constitution

downtown

project.

which will

and

The

serve

Plaza,

redevelop-

building,

new

the main

as

fice, will enable the bank to
solidate

its

of

many

a

of-

con¬

downtown

operations.
*

,

The Singer

*

*

Manufacturing Com¬

of Bridgeport

pany

has acquired

exclusive rights to manufacture a
miniature electronic motion detector.

The

unit, to be known
as
the "Singer Sensor System,"
wiil be produced and marketed by
the Singer Military Products Dinew

.

vision.

The

compact, inexpensive
levice,
described
as
a
simple
radar system, has been tested by
number of government

a

agencies,

and will replace electronic detec-

systems that cost

tion

much

as

as

Stockholders

Corporation,
approved
thorized

'

*

Perkin-Elmer

of

Norwalk,

recently
increase in the au¬

an

shares to 2,500,-

common

000 from

1,000,000 and at the same
approved a two-for-one split

time

in

the

outstanding shares.
The
manufactures infrared
other scientific equipment.

company

and

has voted

a

Rog¬
3% stock dividend

class

its

B
shares, payable
Sept 1 to stockholders of record
Aug. 27. The class B shares were
split seven-for-one in March.
>
on

General

which has
spent $27 million in plant expansion

Electric,

..

Connecticut

in various

loca-

plans to
spend an additional $9 million for
this purpose
The company has
four

plans

and

seven

non-manu-

facturing facilities in Connecticut
of which are

most

Bridgeport

area

located

in the

Some 17 000 Con-

nectifcut residents

G

are

E

stock-

holders
*

Fmninvmpnt at

50%^

Aircraft

iCamati

Blo(Mf?eld

Comtfatira

is

Some "A. B. C.V of

_

of

55,000

a

up

square

foot
East

plant on a 23-acre tract in
Granby,
Approximately 5,000
square feet of space in the new
building
uwiAMiiig
will
wm
be
uc
used
uacu
for office
facilities.
The Delta Corporation

w__

-

tion
of
sound
companies
with
adequate resources that have access to future resources on a favorable basis, and management
that
"mi
is wapauic.
ao
capable. xjuux
Both ct
a idvuiduic
favorable
market
climate
and
a
healthy

1954 for the internal operation are necessary
experiemental if maximum results are to be
parts for aircraft and missiles, achieved by the investor.
The firm has 185 employees. The
The internal analysis of balance
new
plant will make it possible sheets
on
a
comparative
basis
to consolidate manufacturing op- covering a period, of at least four
organized in
manufacture
of

was

at several

now

different locations.
.

,

•

.

|\(0W

illTO

.

N3IT16

TO U0

.

Chaplin McGuiness
PITTSBURGH, Pa.

Effective

—

__

this

most

least

them

rewarding subject.

The

who

man

ance
ctm,c

delve

can

data

acts

record

or

is.

with

confidence.

the

over

longer

■

vjaiiiiCN

'

,

& AnderSOn

a

Overtrading which is

by its very nature is confined to
a study of the past, to that of an
inexact science. But even in this
area of the study of probabilities
the past is many times an indication of the future. For example,

a management that is merger
minded, or that has fostered the
firm on September 1st.
acquisition of additional subsidiEdwin R. D. Fox II will acquire aries may be reasonably expected
a membership in the New York to continue along that same path
Exchange, and will be ad-

in the future.

On the other hand,

mitted to partnership in Chaplin

a company

& Company on August 27th. He

conservative course and has been

that has maintained

a

On

SAN FRANCISCO
mation

of

Draper

Gaither

been
WCcn

o

actual

overtakes

CWfr
hUM On ^OaSlI

** ™

the

announced

R07

1

a

n,

t

in

ago

year

+1TYVO

CO

The

W1H be concerned primarily with
investing its funds in western
duetrial

a

a-xi

still

helicopter manufacturer
is
personnel and

adding to its

CHICAGO, 111.

S

—

The Executive
Stock

Comniittee

present contracts, of around 2,600.

Exchange has elected to membership in the Exchange: Carl A.
1

Southern

England
has
an¬

New

Company

Telephone

sell

nounced plans to

11.

•

•

pany,

$19

loans

from

and

will

million

of

temporary

American

Telephone

Telegraph Co.

Oct. 9.
and

stock

rights

to

will be
Sept. 19 and will expire
The price of the new stock

stockholders.
issued

new

under

offered

be

The

The

the ratio in

rights

which the shares

will be offered have not

d

J?e

9

*

The Sikorsky

Aircraft

*

Division of United
recently

signed an agreement to sell three
S-61 helicopters to Chicago Heli¬

Airways.
The
25-passenger sky liner will be powered
by three gas turbine engines and
copter




expected to continue to
^ change in top man-

u^j0gg

the

at

effected.

The

ysis of

not

Elected Director

oolicv

^

^

level

comparative

is

anal-

balance sheets shows the

effects of such

H v>n'„ act &
P'i,.311*
under secretary of the Army; H.
Bowan Gaither,-Jr., of New York
.

„

■

'j

Su"11?617

Foundation

-Board Chairman, and head of the
committee which in 1957 issued
Gaither Report; Frederick L.
Anderson of Palo Alto, financier

and retired Air Force general; and
Laurence G. Duerig, also of Palo
wish to go that far). Inventory Alto, former security analyst and
turnover that is below the ratio investment counselor. Mr. Draper
for successful profit making, top and Mr. Gaither will shortly ba
heavy current debt and current moving to the San Francisco area,
liabilities that indicate an imbalIn addition to the above, limited
ance between receivables, cash, partners, whose participation will
and inventory, are all visible to be very substantial, will include
the student who takes the time Lazard Freres & Co., New York
to compare what happened during investment banking firm; Edward
the last period of the company's H. Heller and family of San Franbusiness

cisco; and several members of the

is

Rockefeller family.

history and that which
activity.
In this highly technical field of
security analysis, as in any innow

current

Samuel K.

Phillips, Jr.
Pa.

S1'
Z

policies—change is

accomplished

unless

there

is

ties firm of Samuel K. Phillips &
of such a nature as to allow the Co., passed away August 12 fa.
non-professional investor and the after a short illness.

that the ideas presented will be

.

salesman

well,

as

basic

certain

grounding

to

use

fundamentals

foundation

these

Mjt« Phillips had been active in

a

the investment securities business

will

asso^ated^whh6 sTrnuef K^Phft-

as

that

*\Anl

OA

trnorp

Ua

of

jjps & q0^ since 1930 and a gen-

of investments with more confi-

eral

dence in his own judgment, a bet-

1939.

partner

in

the

firm

& Co., has been

Reynolds

elected

a

director of International

Recreation

Corporation

This

announcement

is

neither

an

its

and

The

wholly-owned
subsidiary, Freedomland, Inc., it has been an-

otter to

sell nor solicitation of an offer to buy any of

these securities.

offering is made only by the Prospectus.

limped'bv"Peter DeMet"nresiueiviet, presi

August 14, 1959

200,000 Shares

& Leith

(Special to The Financial Chronicle)

BOSTON,
McNeish
with

Mass.

has

—

David

D.

Hudson Radio & Television

affiliated

become

Leith, 53 State
Street, members of the Boston
Stock Exchange. He was previous¬
ly with Schirmer, Atherton & Co.
Burgess

&

A New York

Corp.

Corporation

Capital Stock
(Par Value $0.25 per Share)

CHAS. W. SCRANTON & CO.
Members New York Stock

New Haven

Price:

Exchange

,

t

(

1

1

,

f

1'

C

•.

Hartford—JAckson

2-9377

per

Share

i

Copies of this Prospectus

York—REctor

$5.00

»
i

New

may

be obtained from the undersigned and from

such other dealers as may lawfully

erf ter these securities in this State.

- ■

7-2669

Teletype NH 194

Lonn

enable him to approach the study

Ralph E. Carpenter, Jr., a part¬
ner

Joins Burgess

*

Corporation

be
gQ

a£?ement

new-

^he Mexican Light
5,mer Par^?er

S-iF°we£

yet been

determined.

-

Com-

Nebraska.

Omaha,

abl

A

1

n

.

Kirkpatrick-Pettis

Falk,

fied number of shares in order to
repay

Midwest

of the

unspeci¬

an

the

William H. Draper,
^
Chairman

.

cxpscts to reach a peak, hased on

The

of

m rSSiS?

financial
company.

in-

pnmnnnipc

n"
f
General partners

voor

tionately out of line with the
needs of the business, can reason-

W

new

ar!^ .*n EalO Alto, California. It

June,

Fvckanffe Member

of

Andprsnn

PHILADELPHIA,
win make his headquarters at the backward in meeting growing volved endeavor, I concur that a
1959, thd company employed2,417;
New York office, 40 Wall c^tior^MU
little
"edge.i^
liquid reserves and "holding
building thing.
However, in this following
a
record
high, compared with
such
locf
resources to a point propor- series of articles it is my hope P**
*
q
1,627 at the same time last year.
over

Calif —For

partnership

firm
whfch is capitalized at
$6,000,000,
maintains offices in San Franciscoi

comparative basis also
many weaknesses
that
be spotted sometimes a year
before

His

term

Form Dr^HPr

a

more

forward

moves

should be superior and it
usually-

linjorot„njinrt

difficulty

en¬

further

and bases his
judgment upon a
study of all the known available

understanding of the baloiiccua
sheets
and
cuiu
the
wie
income cli;iiiuume
ac-

count on
discloses

the

series at

courage

to

go

may

pique their curiosity and

into this

Weaknesses Revealed
4n
An

other
to

involved

challenging subject,
following articles in this

well,

as

for

As

inclined

are

and

prevalent
cause of failure among young and
years,
and a company's income overly ambitous managements
account for the same period, discan be deteced by any
careful
close to the trained analyst factors
reader of the figures as disclosed
that indicate to a large degree the by the annual reports. Inadequate
probabilities of the future regard- profit margins can be determined
ing the operations of most busi- by a study of the income account
ness enterprises.
The extraneous on a comparative basis, and with
and
unpredictable factors
limit other
successful competitors in
ab analysis of investments, which the same field of activity (if you

September 1st the firm name of
Ghaplin and Company, Peoples
Bank Building, members of the
NeW York and Pittsburgh Stock
Exchanges, will be changed to
Ghaplin, McGuiness & Co. J.
Mabon Childs and William P.
Bohn will become partners in the

Stock

*

*

certain.

am

-

11UU

tions since World War II

I

readers who
further into

-

erations conducted

The Rogers Corporation of
ers

For those who are
profess
sionals there will be little that is
new

ago,

struction
*

media.

DUTTON

Investment Analysis
is the first of the
world's four scheduled helicopter
(ARTICLE I)
airlines
to indicate its intention
Herewith is the first of a series
of articles that will be
to purchase a three-engine, turpublished consecutively
each week in the CHRONICLE
bine-powered machine.
The in¬
covering a most important subject. The primary purpose is
itial
flight
of
Sikorksy's
new
to furnish the salesman and
investor with certain of the basic
turbocopter is scheduled for next
tools which can be used
functionally in the study of the
year, and delivery to Chicago is
relative attractiveness of various securities and the balance
planned for early 1961. The S-61
sheet and income items that are
pertinent thereto. These
will carry approximately twice as
articles are not intended to be all inclusive but more as a
many
passengers
as
the single"Do It Yourself Kit" that can serve as a
foundation upon
engine, piston - powered aircraft
which further study
may be accomplished if desired.—Editor
now in use on commercial helicopter lines and will have a speed Why Is Internal Analysis of a change of people at the top.
in excess of 150 miles an hour. SiFinancial
Statements
These two brief illustrations of
1—W
Hi statements
korsky
is
currently
producing
the connection between the record
important.
of the past as revealed
both single engine and twin enby balance
Regardless of the market action sheet analysis and what the future
gine turbocopters at its Stratford
of any particular stock at a given
plant,
may portend are so well known
*
*
*
moment, successful
investment they are often taken for granted.
The Delta Corporation of Hart- procedure over the longer term As the twig is bent so grows the
ford has announced plans for con- must also encompass the" acquisi- tree; such is the life of a business

$45,000.

•

seeking after suitable investment
BY JOHN

The

ter grasp of what to avoid and
what to look for in the constant

Securities Salesman's Corner

Connecticut Brevities

15

J. A. Winston & Co.,

Inc.

Netherlands Securities Company, Inc.

since

financial cnronicte

ana

l.unnnerciai

ne

i

16

.

mursday, August 20, 1952

.

.

(740)
■■

.

Our Reporter on
'

Walter Kennedy with

Governments

T.

JOHN

H. Hentz & Lo.

CHIPPENDALE, JR.

Envisaged

Mr.

has

come

Exchange Place, New York

City,

to provide an underwriting
wholesaling dealerservice,

and

squall
7

as

an

analvst workina

ly

White

Mr

situaf ions

department

a

on

special

a

former-

was

with

manager

Granbery, Marache & Co. and has
x*rV*nlq 1
ronrpconfutiup
acted as wholesale representative
o

oo

for pioneer Fund.
Formation of the

new

sional strength as

firm

was

Formed: SE Member

institutional Investors

investment

the

of

Dissolution

firm of Golkin & Co. and the formation of Golkin,

members

the

of

Bomback & Co.,
York

New

Stock

have been announced!
Headquarters
of the firm will
continue at 25 Broad Street, New

Exchange,

Also, an institution that is interested in the five-year noncall feature can, still make purchases of the long 4%s, and have
at the same time the best grade obligation/ that is available.

the'other hand, have been making not

General

too sizable, purchases of the 2%s due 1965, which can be obtained ~
nf
onncirloyoKla
/■lichAiml
ttrbi'lm
nl
_i
A
C
at
a
considerable discount
while at
the same time the yield to
^

in the newly

partners

firm
are
Milton
J<.
n
T
Bomback, Saul Golkin, George J.
organized
1

ri

.

maturity is comparable to that available in the 4%s of 1964.

The

Golkin and James G. Burke. C. V.

after

that

Converse is manager of the

2%s

1965

of

which is obtainable in the long

is

much

better

than

investors moved into this section which is traditionally the
defensive
-

.

.

434% note.

Proposed Increase in Rate Ceiling Pigeonholed
The

question

of

raising

maturing in

the

4V4%

present

interest

rate

excess

approved'a

motion to shelve the
.

subject until next

fh—Preventative Frank Ikard,

_

said

he

had

become

convinced

by the Committee in favor of

^?i^EF^'CHS0~T

year.

(D., Tex.), who made the motion,
since

a

bill

last

week's

tentative

Gc?^

Grant&

vote

onposition in Congress
too great and that what
might happen to the bill as it went
tnrough Congress was likely to cause more confusion in the mar¬

in

engage

Lester

Building to
business,

securities

a

Grant

M.

is

president

of

the

new
firm. He was formerly
president of Grant, Fontaine & Co.

1960.

DETROIT,
Investment

Mich.

Co.

has

-—

Renshaw

been

formed

with offices

in the Buhl Building
to engage in a securities business.
Officers are Thomas H. J. Ren.

.

,

_

shaw, president and treasurer; E.
G. Renshaw, vice president; and
Dennis A.

Darin, Jr., secretary.

Now

is

continuing

business
mi.

as

.

•

a

its

MILWAUKEE,

(Special to The Financial Chronicle)

SAN DIEGO, Calif. — H.
C.
Hudgins & Co., has been formed

F.

with

Mayfair

offices

at

239

A

Street

engage in a
securities
Partners are Herbert C.

to

business,
Hudgins

general

partners,
and
John
C
partners,
and
John
C.
Abels, Jr. and Ethel M. Hervey,
limited partners.

4.

Wolf,

T

Inc.

E.
Officers

President

L.
are

and

H. C. Watson Forms Co.
LOS

ANGELES, Calif.

C. Watson is engaging in a securifles business from offices at 6462
w^of

osfu

m

Office

in

as

a

the

.1

.

Business

Administration

the

College,

was

mgnt

Milwaukee,

as

Co.,
Manager.

Sales

t

em-

string of uninterrupted quar- profit for the fiscal 1959 year
tcrly pciylYlCIltS

of New

the

Guaranty Trust

the

sen

*

,

.

but

Hammill

City, passed

&

away

Co.,

New

York

Coal

are

companies

occasion¬

be¬ ally come in for comment by
market students both because
in.

in

showing for dealers un-

,

..

,

steel strike

less

the

tied

speedily.

was

arg

no

aluminum

and
.

caution

more
,

.

,

,

busi-

also contributed some

nesses

,

market.

If

the

to

more than a quarter of
a^d Qnly half pf profits
dependent on the coal

such-

signs and labor unrest in the
copper

little

business.'

showed

The strike

°ther fields to where only *

set- gales

*

*

*

r,

i

i

the

labor

And this is the extent of
diversification of a company
that has stood out as one ot

ttie mQst efficient coal

stock pRtston's othpr

miners.

revenue

cur-

r-nibion s» otnei avenue
tieups rently comes from transpor-

»

«

1

t

•

*

anf. warehotKing serv
*ces and distributing oil prod-

Persist *** Lab®r ^ the *atlon
sturdy fall rebound in

.

...

,

will be

importantly,

August 10th.

Diversifying From Coal

gen¬

quiet

were

models

new

business

Roy E. Bard, 'partner in Shearson,

$4.84.

troduced and the extent of they have had little m the
public acceptance gauged, way of excessive price action
particularly in the compact and some have succeeded m
cars that the Big Three are diversifying to where it is
set to offer. A jarring note for rnoot whether they are corthe motors were estimates of rectly called coal companies
Cadillac
officials that their these days. Pittston, for innew models would be only a
stance, has spread around m

,

Roy E. Bard

Treasurer.

the

followed

market

usual

York.

'

-a

name °f Hugh C. Watson & Co. He
has recently been with Christen-

was

*

❖

_

and

~

meeting. It ended a 60-year the $5.38 peak of 1956. The

i

waukee,
en

was

4.

this week's

at

graduate
associated

Musical Isle Record

1

a

quarterly pay- cal year are destined to post
dividend a new record well ahead of

omission of its

registered

Loewi &

of Carroll

xxrbon

„„0i;+TT

to the qualltY section when a tions running close to capacplunge in earnings to reed ity, results in the current fis-

firm's

prior to joining
Co., Mr. Schmidt, a 1951

Place under the
& Co.

has

Incorporated

^Immediately

i

Hugh

-

Keystone is also working
busily since its labor contract
with
an
independent union
doesn't expire until early next

Fruit
which
had year. For the fiscal year that
high investment covered the first half of the
standing a bit tarnished when 1959 calendar year, the comthe first 1959 payment was pany showed a fat increase in
trimmed, was a definite chill earnings and with its opera-

A

Wis. — Donald
joined Loewi &

Previously, Mr. Schmidt

vu The
Xiiie.
li\ ANCIAL UHRONICLE)
tSpecial to
Financial
Chronicle)

Treasurer;
David
Wolf,
VicePresident; A. R. Schlakman, Secretary; and B. J. Black, Assistant




Schmidt

Co.,

with

investment

corporation,

Wolf Associates

Emanuel

With Loewi &. Co.

Hudgins Ope ns

Corporation

WASHINGTON, D. C. — E. L.
Wolf Associates, 1511 K Street, N.
W.,

Hi. C.

^

its

seen

fore

,

ottered at recent levels a

yield-of as much as 4%.

United

token

Renshaw Inv, Co. Opens

from

since it will be some time

has been fomiedwith

the Central

offices in

that

was

kets than the committee decision to
put off action until

&

Epochal Dividend

An

Motors

in Oakland-

Inv Co

n ?w n by investors. The
stock sa far thls year has yet
carve out a range of as
™ch as a dozen points and

_

Allen-

Lesfer Grant Forms

on

of five years became academic,
for this year at
least, as a result of the action of the House Ways
and Means Committee on Aug. 18.
The Committee
issues

group

mentarily.

branch office.

Pa.,

town,

k

but the overall

one,

kent
the
*

Dressure
1

eral

Treasury

the cautious

Omission

rities.

the

*

*

and consequently not too-well
occa-

some

perking up more than mo

-

Golkin, Bomback Co.

was first
offered, but it still is nonetheless one of the best returns
which is obtainable in the note classification of Government secu¬

on

independent

by

e

❖

*

had

Utilities

previously reported in the "Chron¬
icle" of July 2.

To be sure, the current price of the 4%s of 1964 gives a yield
which is quite a, bit under that which was available when the issue

return

f

average

since

& Co

formerly with Hardy

was

from that five year non-call feature which most institu¬
before they will think of making commitments in
corporate bonds.
"

tax

its facilities through strikes,

under the low of the

He

Investors.

Arbitrage

of

dent

tions demand

on

keynote also operates a large part of

the

was

*

far away

institutions,

P^e ^ly closed down. National

11 well m a n n e d
previous unions,
Railswere little help
*

dustrial

Although this note does not quite run for five years, it is not too

Some

not

of liquidation to depress was buoyant for the most
prices. In the process the m- Both have important facilities

author of "Arbitrage
and Securities," is Presi¬

in Taxes

that much

Q

pres-

was

Mr. Abrams,

The fact that the 4%s of 1964 are selling at a premium above

Issue Attractive to

restrained

particularly those
where operations arent corn-

the

to

department.

relations

dealer

the

from savings bank accounts as well as

'

themselves

a

their average was also
e
gh yield'an the speAbrams, who will be in charge of drifting
downward without ciaity steel section is Keyunderwriting activities,, and any sign yet that a floor has stone Steel & Wire which is a
Dougald C. White who will
Jismdle been reached.
name not bandied about much

the issue price of 100 proves that there is a demand for a Govern¬
ment issue which has a yield that will meet the needs of investors.

most

Companies

stocks

way

specializing in new security issues.
Among the principals are Alvin

the stock market.

from

Corporation

at 40

into the 1964 maturity by those

other obligations

from

attracted by the high yield; There is evidence

new

'

„

co^rS0>

news

and it didn't take much in the

opening of offices

the

announces

whole has been moving "'within a
unimportant part of this volume and
activity can be attributed to professional operations. The 4%%
note due 1964 has been pretty much of an issue all by itself,
apart from the market as a whole, since there has been some real
investment interest in this obligation from both large and small
buyers. It is reported that the bulk of the recent buying in this
security has come in small lots, indicating that funds have been

money

little in the

.

_

following

were

which, however,

Caution

New York

in

Philadelphia

First

restricted range, and not an

are

.

Steel

%

for the

account

drop

Philadelphia

Opens

4%s of 1964 Command Premium

this

„

Some Black Ink Steel

indicated that enough of its
lowest level in
operations were
continuing
of the New York of- weH over a year, an unfavorfull blast to keep the company
.'
able technical sign.
in the profit column for the
third quarter. Armco, which
Caution the Keynote
Kennedy

V.

Walter

bond

First

The Government list as a

of

corpora¬

department

Also, this condition is expected to continue as long as the dis¬
agreement between the steel companies and labor goes on. Ac¬
cording to all indications there are no signs yet of a new contract
being worked out, in spite of the meetings that are being held
between the lower echelon of the parties concerned.

the

unexpected since last week's
yas a^e
buck down
v,~i
' ^ u~A 4™*. nninmn markets after the company
rebound had seen volume

fice-

opinion of most money market specialists that the
steel strike is responsible in no small way for the ease which has
been evident in the near-term sector of the Government market.

as

Incorporated
charge of

tion

securities.

Week

chaos

_

sure

the

the Treasury

is the

switched

to

of

was

industrial

Coffin & Bun-

in

completed its Summer new money
258-day tax anticipation bills were sold
at auction at an average interest cost of 3.719%.
These new bills
were an addition to the 258-day tax anticipation bills which were
used to borrow $3 billion early in July. At that time the interest
cost to the Treasury was 4.075%. The lower interest rate for the
Treasury in its last offering of tax anticipation bills reflects the

that

There

formerly
officer

an

there is
the around.

grope

on

*

❖

Kennedy

was

raising when $1 billion of

It

depart¬

ment.

is the trend of in¬
terest
and Winter.
The
opinions appear to be very strong among some money market spe¬
cialists that with the settlement of the steel strike in the near
future, interest rates should continue up, with an increase in the
prime'bank rate and the discount rate not to be unexpected.

better demand fcr short-term

this

to

area

selling that had killed off the
summer
rally a week ago
flared up again.

of the 'institu¬

big concern of the money market now
rates that will be witnessed this Fall

week

support

a

downside

as

manager

tional

continued

Stocks
for

Stock

sales

The

Last

•

New

Exchange,

institutional.

Higher Interest Rates

t h e

York

bought, with a premium also being
this obligation. However, in the case of the i960 secu¬
been mostly

*

of

also been well

rity the demand has

Co.,

City, members

yield on the latter's issue has declined steadily since its issuance
and is now very materially below the coupon rate. The 4%% issue
shown for

&

Hentz

H.

New'York

way,

of 8/15/60 has

Kennedy has become

with

72 Wall Street,

for Governments appears to have expanded in a
mainly because of the purchases which are being
made of the 4%% obligations, especially the 1864 maturity.
Tne
The demand

STREETE

WALLACE

BY
Walter V.

associated

£:

limited

■

The. Market... and You

'

BY

1

•

■

and

w
,
i
! ucts with smaller interests m
snuffed Out

natural

the

stock

market is not noted for mak-

and timber The
a bit iaggar(i
steel-strike began

gag

stock has been
since

the

ing important progress when because

it produces a good

Volume

Number 5874

190

of

percentage
but

coal,

its

..The Commercial and Financial Chronicle

.

metallurgical

including acquisition of
Brink's, the armored car com¬

shores profits up well.
The company pays cash-plusstock, so the cash yield is low,
under 2% recently. Its 5%
pany,

for the purchase and rental
machinery and equipment for
a
new
plant at Pottsville, Penn¬
sylvania, for the installation of
bulk handling facilities there, and

pany

Extrudo-Film

Corp.
Stock Being Offered

diversification,

An

underwriting group headed
Maltz, Greenwald & Co., on
August 18, offering publicly 175,shares

of

Extrudo-Film

stock

common

Corp.,

at

$3

for the

ceeds

of

earnings
far this

the same payments
virtually certain to be

are

year,

re¬

tained;

Copper Cos. Hedged Abroad

of

pounds

6,000,000

film

is

made

and

stock

will

be

used

by

to

500,000

the.,

will have outstand¬
shares of
common

collateral
trust
sinking fund 4Y4%
bonds due 1971. Allen & Co., ne¬

mortgage

gotiated

until next

don't

will

and

cease

Securities
formed
mont

Corporation

with offices

and

Harry

Officers

I.

urer.

Sol Goldstone Opens

exchange

the

of

HICKSVILLE,
N.
Y.
Goldstone is engaging in
ties

of 5%% bonds will

business

from

S.

Goldstone

offices

a

in

women

all

walks

of

in

life

22,000 communities throughout the land

of

note

new

They are men and

strength in this gyrating com¬
modity. So Anaconda's posi¬
is

tion

favored

a

price strength and con¬
tinued
operations in South
America

apparently

offset the

able to
effects of any shut¬
facilities

of

downs

When

what

one,

with

this

in

owners

and

and

more

half

of the American

delivered

by earnings of the

share

alone makes the
something of a candi¬
date for
dividend improve¬
ment
eventually. The first
half earnings, incidentally,
were triple the results of the
similar period last year.
year

to

than

more

Oils

important to the

are

Joneses and all the other A.T. & T.
share

They

owners.

telephone

of the Oils

subdued

were

after

are

once

signs of stirring when first
earnings showed general
improvement over last year in
the nature of 25%. This has
despite

bles

still

that

THE POSTMAN RINGS

the

so

many

the over-all economy

though considerable,

Yet the total,
is small

stocks

flow out from the business.

recent

had

years

kept the funds out of the oil
section of the market. The oils

also

favored in that their

are

labor costs

are

low

and

inflationary aspects of
strike

settlement

minor

to

offer

them.

for

steel

will

They

of the better

some

available

a

any

quality

be

also

yields

<

compared to other sums that

Last year,

System paid

more

much in taxes
share

owners

as

it

provided nearly

a

Wages, of

course, are

item.

Sinclair and well past

4% in

as

investment

an

Standard Oil of
[The

article
time

views
do

not

coincide

<cChronicle."
as

those

In the Bell

and

of other people have

ings of their insurance companies, pension

in
at

those
are

this
any

of the
presented

of the author only.]




dividend checks. Women are

the most stock.... In addition to direct owners

own

an

important interest through the hold¬

funds, mutual funds, unions, savings banks, etc.

1958 Bell

wages

half

the biggest

System they

are

than the

entire net income of the business.

In

totaled

over

$3,700,000,000... the nation's largest
business

our

dollars worth of

were

It is natural and

jobs in other

made possible by

large purchases from outside

more

facturing and supply unit,
Western Electric

out

more

small

again

we

through¬

Nine out of ten

businesses,

fewer than 500

the

Company, bought

than 30,000 firms

the country.

were

than

handles
The

the Bell System's manu¬

each

employees. This

expect to buy over a

with

BELL

TELEPHONE

over

logical to expect

200,000,000 calls

a

day.

important thing is to relate

figures to the size of

the need and the

how the very

job. And to realize

size of the business con¬

tributes to the

of

companies.

a

the size of the

prosperity of millions

people and the

economy

of the

whole country.
It is

year

billion

materials, parts

business that serves
55,000,000 telephones and

big figures in

sources.

Last year

raw

and services from other

payroll.

companies

from

more

System

at

an

example of free enterprise

work for the

Jersey.

necessarily

They

owners

favorite

expressed
with

a

of city, state

and federal governments.

billions of dollars

such

It thus

billion and

dollars for the support

5% in

much

than twice as
paid A.T. & T.

in dividends.

as

as

1,625,000 TIMES with A.T.&T.

of share

Thousands of other

for example, the Bell

issues,

running to

group

factor in

a

of the country.

heavy concentration in such
in

largest

people in 22,000

communities is in itself

the

since

they entrust to us goes into more and
better service for you.

dividend to

holdings of oil stocks is con¬
favorable

telephone service

no

know it today. The money

you

of A.T.&T. securities, millions

dustry. The continued whit¬
tling of investment company
sidered

And without investors

The distribution of the A.T. & T.

in¬

the

investors.

as

trou¬

some

harass

stock and

on

bonds there would be no

there would be

half

important to

users too.

on

interest

recently showing

occurred

1,625,000

Smiths and the Browns and the

Without dividends

more

a

owners.

Dividends

issue

Favorable Aspects

Telephone

Telegraph Company they visit

quarterly dividend, for instance, is

covered

was

of this

tremendous number of homes. The

country. The fact that the in¬
dicated dividend

the postmen

country set forth with mail for the

SYSTEM

good of all.

Sol

securi¬
at

15

name

Investments.

has

brought firmness for a change
in the price of the red metal
is

the 1,625,000 share owners of A.T. & T.

among

—

a

Sleepy Lane under the firm
of

4900 JONESES
are

are

Barnett, president and
Orie Seltzer, secretary and treas¬

the

Proceeds from the placement of
the $40,000,000

expire

threat

been

Avenue, N. W., to engage in

securities business.

a

has

at 1010 Ver¬

6600 BROWNS

*

*

strike

which

corporation

the bonds.

limited

a

the

for

placement

Exchange,

■'

partner.

com¬

be

to

Corp.

WASHINGTON, D. C.—Atlantic

year.

*

The

and

agreements relating to the private

from Chile and the contracts
'

Form Atlantic Sees.

twenty-year

Street, New York City, members
of the New York Stock

shutdown of the
industry. Anaconda
gets the bulk of its production
there

it

$20,000,000 first mort¬
gage and collateral
trust bonds
5% sinking fund series due 1971
have been issued in exchange for
a like amount of outstanding first

September 1st Francis Kerwill become a general partner
White, Weld & Co., 20 Broad

any

force

that

that

and

On

domestic

in

17

nan

the

of

August

on

trust sinking fund bonds due 1979

To Be General Partner

in

simplify the

corporation's debt structure.

placed
privately
$40,000,000 of
5%% first mortgage and collateral

general

stock.

widths

by Corporation to finance
plant expansion and

The Colorado Fuel & Iron Corp.

announced

pro¬

This

year.

sale

added

17

program of

a

14,500 SMITHS

keep a good part of
operations
going

can

through

the

from

having strike troubles, so far
on
a
spotty basis since con¬
tracts are only now expiring
officially. Here, as in the
steels, there are hedge items
their

ing

industrial packaging.

Proceeds

the

of

Upon completion of the offering,

offered either as
tubing or flat sheeting. Both types
are
subsequently
processed
by
customers on high speed convert¬
ing machinery for use as consum¬
er

be

will

the company

and gages and is

Copper refineries have been

that

a

various

in

Private Placement

corporate funds.

per

share.

payment, however,
The
company
manufactures
changes the situation drasti¬ polyethylene film which it now
cally and has been in effect produces at an approximate rate
rebound reported so

balance

The

be used

Corp.

modernization and to

payment of certain indebt¬

edness.

stock

since 1955. With the

Colo. Fuel & Iron

of

by

000

(741)

announced

News About

by Lawrence F. Stern,
Aug. 12.

Chairman,

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

Mr.

has

Daly

bank

*

❖

CAPITALIZATIONS

the

1958.

since

REVISED

Banks and Bankers

with

been

if

Manufacturers National

The

Mich., opened on
its 39th office in tempo¬
quarters at
1012-16 North

Hunter

given to Certifi¬
cate of Increase of Capital Stock
from
$4,949,000
consisting
of
49,490 shares of the par value of
$100 each, to $5,472,100 consisting
of 54,721 shares of the same par
value, of the J. Henry Schroder
Banking Corporation, New York,
Approval

was

N.Y.

(Monongahela)

Eagle

on

Aug. 22.

*

Sept. 19, WPNB will open the new
Drive-Thru Bank in McKeesport
at the corner of Walnut Street and

Board

Trustees

of

Savings

County

if

Kings

Brooklyn,

Bank,

President

Y.,

The

of

Charles

D.

H.

of

Beam

Cleve¬
land, Ohio, announced two officer
National

the

City

Bank,

12.

promotions Aug.

H.

John

Quell

as

new

a

Member.
*

sjs

Application,

Aug.

dated

6,

for

approval of change of name from
The Citizens Bank of Arcade, N.Y.
to

Citizens

The

N. Y.

Central

Bank,

division,
bacher

*

First Camden

of the

National Bank

&

den, N. J.

the First National

of

and

Trust Co.,

has

J.,

N.

Cam¬

been

ap¬

proved by the Directors and is to
be voted upon by shareholders of
both

Banks.

the

Under

merger,

shareholders

Collingswood
get

would

and one-half First Camden

one

shares

for

Total

every

they

one

held.

of First Camden

resources

position

First

Bank

Company,

Cam¬

increased

Jersey,

capital stock by
dividend from $2,500,000

its

*

Sidney,

stock

mon

the

7,

ISank,

*

*

com¬

consoli¬

$250,000,

National

First

the

$100,000, effective July 31 un¬
der
the
charter
of
the
Sidney
Citizens

The

title

the

with capital stock of $460,000,

divided into 46,000

shares of com¬
stock of the par value of $10

mon

each.

Indian¬

Bank and Trust Company,

apolis, Ind., with

$5,000,000

stock of

common

the

and

Trust

&

Company,

Fidelity Bank
Indianapolis,

National

568,750 consolidated July 31, 1959

New

Jersey,

with

of

stock

common

the

under

*

charter

$2,-

title

and

of

to

:i:

the par

,

Bank

Aug.

dates

for

its

18th, 19th and 20th
offices. They will be

dedicated

within

one-month

a

period starting Aug. 22.
First
cated

of

the

will

three

be

the

LEGAL
NOTICE

OF

AS

WEST

SIDE

of

Chester,

OF

*

Rodney
elected

Trust

records

of

the

Collars

Daly

the

NOTICE

Insurance

above-named
entitled

to

CERTAIN

in

ROYAL

ON

118

E.

11th St.,

N.

trust

for

LEAHY,

Y.

Bernard

Jr.

or

The

William Street
5, New York

whose

persons

addresses

names

and

last

known

or

are

W.

R.F.D.

State

DUE

ON

to

section

]«w.

301

list

A

of
of

uppearing

from

is

on

Inspection

at

aoove

erty is

On

J.Pth

Co

or

such

the

mall

the

Abandoned

the

the

the

or

be

to

persons

entitled

the

the

of

such

Such

to

open

office

Property

of

names

records

and

where

payable.

Persons

faction

the

file

vrtll be paid on
«

ian

property has been
Comptroller pursuant

State

thereto
voted

B.

Joseph Arthur Moreau, Deceased, c/o Boliv¬
of unclaimed

the

public

bank

abandoned

abandoned

as

prop¬

property

before" October 31st next

establishing to this bank's satis¬
right to receive the same.

before

the

unclaimed

State

'

succeeding

property will

Comptroller

thereunon

cease

November

to

be

and

this

liable




be

paid
bank

therefor

A

Power

Co.

Ltd.

Oruro,

report

Bolivia.

of

unclaimed

property has been
Comptroller pursuant to
Section 301 of the Abandoned Property Law.
to

the

State

A list of the names contained in such notice
on file and open
to public inspection at
the office of the bank, located at 68 William

Is

Street, in the City of New York, New York,
such abandoned property is payable.
Such abandoned property will be
paid on

where
or

before October 31st next to persons estab¬
to
its
satisfaction
their
right to

lishing

receive

the

same.

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

$300,000

to

sale of

new

000

$500,000

to

$400,000

in¬

The

*

First

*

from

the

sale

of

Aug. 14.

to

new

180,000

-4-

*

a

:

a

New York,
elected

was

Bank in

Y.,

Aug.

on

Director

The

and

also
It

Witt

post at

the

the

to

announced that Mr.

would

Chemical

elected

was

was

his

assume

new

early convenience of

Corn

Exchange

Bank

where he has been Vice-President

Mr.

Witt

De

began has

with

the

Bank,

Johnson

1922,

Tennessee

transfered

Planters"

Bank

Va.,

with

the

to

in

State

Commerce,

has.

1923 ..and

Chemical

to be liable therefor.

Pacific

of

*

Corn

Ex¬

since

Bank

Assistant

seven

1939

its

by

sale

of

and Vice-Presi¬

if

National

Bank

common

of

Ala.,

of

in¬

capital stock

new

stock

share-owners

Aug.

on

6,

the

in

increase

an

authorized

capital stock of Bank
from
343,750 shares

Hawaii

-

value) to 500,000 shares.
lifted the authorized capital

($20

par

This
stock

from

$6,875,000 to $10,000.-

000.

standing —
value $5).

220,000

was

H..

au¬

Aug.

on

Bank

of

announced

was

provide for issuance from time to
all of the additional
156,250 shares of newly authorized
capital stock of the bank either

time of any or

cash

for

or

cash and

as

for

and

as

or

dividend

At

dividends

stock

a

both for

or

stock dividends.
of

Board

a

meet¬

Directors

ing following the share-owners
meeting, the Board authorized a

Dallas,

A
%

First

if

*

Bank

of

Arizona, Phoenix, Ariz., increased
its

common

capital

stock

1,014,300,

par

.yalue $10).

■*

By

a

stock

they

are

re¬

of

the

option

a

in

tion

companies to
their construc¬

subsidiary

financing

programs.

The

its

on

paid

divi¬

stock

since

has

company

dends

common

to
six
company paid
quarterly dividends of 25c per
in

1952;

they

1958

amounted

the

share. For
months of 1959, the
per

two

first

for

each

ten

shares

1959,

31,

$60

subscription
shares.

price

Warrants

the

for

for

sub¬

scription rights for the new shares
will be mailed about Aug. 19 and
subscription rights will expire at
12 Noon on Sept. 15, 1959.
Board

of

Directors

also

rate from 55c to
share payable on Sept. 8,
as of Aug.
28. (New shares will not partici¬
pate in the Sept. 8 dividend).

over

20

million.

...

,

12 months ended March

operating

consolidated

income

net

to

and

these

for

$12,553,000

periods.
Giving effect to the sale of the
convertible

junior
debentures,
capitalization of the"
company
at
Dec.
31,
1958
amounted
to:
$365,229,000
in
long-term
debt;
$59,023,000
in
public equity in capital stocks of
subsidiaries; and 7,312,306 shares
of common stock, no par value,
amounting to $286,229,000.
consolidated

Now With Lester Ryons
(Special to The Financial Chronicle)

LOS ANGELES,

Liddlei is
&

now

623

Co.,

members

of

Calif.—John L.

with Lester, Ryons

South
the

Street,

Hope

York

New

and

Pacific Coast Stock Exchanges. He

formerly with Walston & Co.,
and Dempsey-Tegeler & Co..

was

Inc.

Merrill Lynch

Adds

(Special to The Financial Chronicle)

LOS

ANGELES,

Calif.—Daniel

Woolley has been added to the
of
Merrill
Lynch, Pierce,
Fenner & Smith, Inc., 523 West
Sixth Street.
He was previously

60c per

W.

1959 to stock of record

staff

with Kidder, Peabody

Hornblower, Weeks Adds

com¬

a pop¬

$14,046,000 compared with $207,104,000 and $14,076,000 for the
calendar
year
1958.
Corporate
net income amounted to $12,492,-

au¬

dividend

having

area

consolidated

and

1,215

serve

amounted to $210,795,000

revenues

thorized the increase of the quar¬

terly

an

of

For the

owned

by the share-owners. It authorized
a

subsidiaries

where

countries

Latin-American

& Co.

Walston Adds to Staff

(Special to The Financial Chronicle)
(Special to The Financial Chronicle)

WORCESTER,
Green

has

Mass.

been

—

Clifford

added

to

the

Weeks, 300

Main Street.

LOS

ANGELES,

Falkine

has

Walston

&

joined

Calif. —Stella
the staff of
550 South

Co. ' Inc.,

Spring Street.

from

$9,660,000 to $10,143,000, effective
Aug. 12, by the sale of new stock.
(Number of shares outstanding—

zens

share

F.

National

at

in

ment

aid

14, 1959 on the basis of one new

Staff of Hornblower &

The

interest

an

prior to Aug.

redemption price of
from Aug. 1, 1961 through

105%

offering of stock to
share-owners of record as of Aug.

the

of

the

at

company

subscription

by Karl

Chairman

Board.

11

at

Otherwise,

1964.

/share

per

not redeem¬

are

refundable

deemable

thorized the Board of Directors to

Director of the Re¬

a

National

Texas, it

par

*

Carpenter,

elected

public

*

shares,

$18.50

cost of less than 6%

000

further

share-owners

The

from

$1,000,000 to $1,100,000, effective
Aug. 7. (Number of shares out¬

$16 per

to Aug. 1, 1961,and,
certain qualifications,

prior
to

not

are

ulation

approved

new

Tuscaloosa,

creased

be¬

later.
*

First

He

Vice-President

years

Tuscaloosa,
the

1924.

of

1959

1,

They

subject

Honolulu,

Hawaii,

career

Tennessee,

of

of

Hawaii,
•

National

City,

com¬

share.

is

National

First

St. Petersburg, Fla. J. W.

Walter
Board.

De

of

N.
a

at

and

1969

thereafter.

munities in

of

Bank,

price

Dec.

from

1929.

■

,

William G. De Witt, Vice-Presi¬
dent of Chemical Corn Exchange

the

1,

the

through
opening of business on Dec. 1,

share

the

Bank

par

'

'

v

Jr.,

Bank

*

out¬

shares,

$10).A

conversion

a

of

unless previously redeemed,

Grove, which began operations in

effective

stock,

(Number of shares

standing
value

capital stock
$1,800,000 by

common

$1,650,000

of

Bank

McKever,

National

First

South Carolina, of Columbia, S. C.,
increased its

stock

common

pany,
at

convertible

debentures are

The
into

at

its
The
President. The Bank of Carmel, a
principal business of
state institution, was founded in American & Foreign Power's op¬
1923 and currently has A. G. E.
erating subsidiaries is the pro¬
Hanke
as
its
President.
R.
Ii. duction, transmission, distribution
and
sale of electric energy in 10
Partridge
is President of The

of

Bank

Robert

1904.

;

National

National

First

Tne

stock

a

oversubscribed.

$1

Monterey was established early in

$400,-

divi¬
dend, effective Aug. 7. (Number of
shares
outstanding — 100,000
shares, par value $5).
by

than

more

$120,000,000 in capital accounts.

the

by

stock and from

of

assets

$1,750,000,000;
and
a
total
of
almost $2,000,000 would be joined
to
Crocker-Anglo's
more
than

capital stock

thereupon

cease

500,000 would be added to Crock¬

Com¬

C.,

N.

1984,

was

porate purposes, including invest¬

merger

than $1,500,000,000;

more

er-Anglo's

of

100%. This offering

due

their

the

on

combined assets in excess of $29,-

Waynoka,

Bank

common

Hoblitzelle,

made

of

vol¬

if

Gastonia,

its

Ben

DEPOSITS

Exploration,
S.A.
c/o Hugh
Griffith, Box 307, Nassau, Bahamas.

Line,

Mass.

to

of

creased
from

if

*

AMOUNTS

Bank,

National

more.

Lundberg
Helen

A report

The

The
CANADA

set forth below
appear from
the
records
of
the
above-named banking
organization to be entitled to unclaimed
property in amounts of twenty-five dollars

LXEIN, Rosa, 38 Marcy PI., Bronx, N. Y.
i-ONES, Rcba Scldon, 140 Waverly Place,

made

State
if

dent

PROPERTY

OF

000

Way-

in

placed

was

Chemical in

OF

C.

Yonkers

Bank,

Aug. 18 an issue of $15,000,000-

on

by approximately $27,500,Crocker-Anglo's total deposits

acting

and

Deposits of the three Monterey
institutions would in¬

par

Okla., effective July 20.

PERSONS

'

.DEPOSIT

Davis, Jere L., Prospect
Hill, Stony Creek, Conn.
FHELAFIELD, Helen, Brewster, New York.

HANSEN,

First

by

came

by

BANK

near

offered

of the group which

agers

6% convertible junior debentures,

-

OWNERS

held

THE

the

in

Corp., and ha¬

& Co. are joint man¬

Freres

July 31, 1964 and at prices de¬
clining thereafter to 100% on or
after Aug. 1, 1968.
Of the net proceeds, $10,000,000
will be used to repay outstand¬
ing1 bank loans, and the balance
will be available for general cor¬

ering
plan.

liquidation and succeeded

been

twenty-five

Unknown.
L.

Okla.,

untary

*

68
DUE

AS

UNCLAIMED

banking

unclaimed

of

IHEDLEY, Adele 85 Bx. River R*d.

John

was

NOTICE

OF NAMES OF

APPEARING

amounts

RriAW, James H.
Y.

and

it

held

be

con¬

Peninsula

Commercial

change

New York

N.

111.,

Americas

Deposit

be

AMOUNTS

It AVIS,

the

of

Bank

Chicago,

LEGAL

shares,

600,000

banks

all

of

crease

been

has

National
of

more.

or

—

meetings of the

for the purpose of consid¬

future

value $10).

since 1946.

*

York. N. Y.

the

to

in

O.

Co.

BANK

Corporation

property

outstanding

will

cerned

capital stock

merger

special

shareholders

$5,000,000 to $6,000,000, ef¬
(Number of shares

Richmond,

SAVINGS

Federal

organization

from

proposed

Separate

fective Aug. 5.

in

OF

PROPERTY

The persons whose names and last known
eddresses are set forth below appear from
the

if

Vice-President

a

American

PERSONS

its

increased

111.,

capital stock by the sale
of
new
stock
to
$200,000 from
$100,000, as of Aug. 10. (Number
of
shares
outstanding — 4,000
shares, par value $50).

common

was

if

common

Peninsula

Monterey

is now
contingent upon approval by the
respective shareholders and con¬
sent
of
supervisory
authorities.

a

increased its

The First Boston
zard

able

The-

stock dividend, the Fourth
National Bank in Wichita, Kans.,
By

three

Banks.

Assistant Vice-

if

if

and T. A.

Bank,

National

Work, Chairman of the Board of
the

if

Minneapolis, Minri.,

President

❖

BY

390 Avenue of
New

~~~~

OWNERS

HELD

dedi¬

:!'•

The Buena Vista National Bank

facility at

NC)TICE

UNCLAIMED
.

be

to

new

NAMES

APPEARING
CERTAIN

Member

*

19 announced opening

community

of

on

Anglo

out¬

value

par

Aug. 12 by Paul E.
President
of
Crocker-

jointly
Hoover,

new

named Vice-President.

13

value of $10 each.

Pennsylvania National

of

shares

of

Hunt,

common

$50,000

sale

if

*

Edgewater

*

Western

Bank

National

Fletcher

American

Ind.,

its

from

W.

merce

of

capital American Fletcher National Bank
$250,000. and Trust Company, with capital
(Number of shares outstanding-— stock of $6,798,120, divided into
5,000 shares, par value $50).
679,812 shares of common stock of
ctock

(Numoer

if

Center, Ohio, with common stock

and

Na¬

$100).

Center, Jackson

Jackson

of

with

of

effective

Edgewater,

Increased

Ohio,

of

with

dated
Bank

Bank

National

Sidney,

the

by

standing—4,500 shares,

The

dividend,

stock

a

$450,000,

John

merger

-

a

625,000, effective Aug. 4. (Number
of shares outstanding — 420,000
chares—par value $6.25).
By
Aug.

to

noka,
Citizens

The

in which the three
banking institutions would
merge into
and become part of
Crocker
Anglo
was
announced

14, increased its com¬
capital stock from $350,000

mon

National
Calif., of

Quickly

Oversubscribed

latter

of Aug.

as

*

*

*

stock
to $2,-

common

of

Company,

Trust

Baughman National Bank of Sid¬

National

Camden

Trust

and

New

den,

accepted

has

Vice-President

as

the

if

Northwestern

Third

of Mon¬

and
The
First
of Pacific Grove,

Calif.,

tional Bank of Minneapolis, Minn.,

Titusville, Pa.

ney,

The

who

Titusville

Bank

of June 30 were $7,797,097.

as

Assistant

from

River Office. He succeeds

McEnteer

the

West Col-

Collingswood,

lingswood,

raised

*

a

Bank

William

and

was

Manager to Manager of the Bank's
Ben

A merger

named
of that
G. Lam-

Division,
was
Vice-President in charge

Rocky

filed.

was

L. Squire, Assistant VicePresident
in
the
International

Banking

*

The

Francisco, Calif.,

Foreign

Debentures

by the Boards

terey, Calif., The Bank of Carmel,

President of the Midland National

Behrens announced the election of
Frederick

Bloomfield

Bank
if

Amer. &

if

First National Bank

The

to an an¬
Arthur J. Fush-

by
if

stock.

if

if

Francis

President

tional Bank, San

President.

man,

Sept. 11, the bank's new of¬
Shopping
Mart will be dedicated; and on

the

of

nouncement

On

#

meeting

a

Boulevard,
according

Township,

fice at the Great Valley

Sixth Ave.
*

Following

N.

New

common

of Directors of Crocker-Anglo Na¬

10

rary

if

Formal approval

Bank of Detroit,

Aug.

its

1,260,000 shares, par value $10).

#

.

increased

California,

capital stock from $10,500,000 to
$12,600,000,
effective
Aug.
6.
(Number of shares outstanding—

on

dividend, the Citi¬

National Bank, Los Angeles,

Two With Keller Bros.

Joins Grant Fontaine

(Special tc The Financial ChronIcle)

BOSTON,

Mass.

—

Arnold

(Special to The Financial Chronicle)

B.

OAKLAND, Calif.

—

Douglas

Goldstein and Michael J. Kosowan

Garrett has become affiliated with

have

Grant,
Fontaine
Twenty-first Street.

joined

the

staff

Brothers Securities
Court Street.

of

Keller

Co., Inc., Zero

&

Co.,

360

He was for¬

merly with Reynolds & Co.

Volume

190

Number

5874

.

.

The Commercial and

.

Plan New Stock

Chicago Bond Club to
Hear Godfrey Schmidt
CHICAGO, 111.

—
There will be
luncheon meeting of the Bond
Club of Chicago, Thursday, Aug¬

For Newer,

P.

exchange

being planned

Speaker will be Godfrey

devoted to listing the

securities of
newer,
smaller
corporations of
high quality. In advance of formal
application for approval to the
Securities and Exchange Commis¬

Schmidt, whose subject will be sion, "The Little Board" is now
Incipient
American
Fas¬
accepting letters of intention to

"The

cism."

Mr.

Schmidt

counsel for
file

members

Union

of

some

of

the

at

served

as

the rank and

the

last

Teamsters
election

list

their

ested
The

securities

corporations.
decision to

inter¬

from

ahead

on

of

plans for the new stock trading
which facility came as a result of a sur¬
was
held in
October, 1957.
In vey carried out by the New York
January 1958 he was appointed by
Mercantile
Exchange.
Replies
officers for this organization,

Federal District Court

a

as

board of monitors,
responsible to the court
in watching over the activities of

who

were

officers

the

Union.-

of

the

Clagett,
York

showed

that

brokers

throughout

the nation would welcome a third

stock exchange and that
corporations were interested

exchange that would be
primarily concerned with smaller,
an

younger

nicknamed

"The

Form Life Inv.
of

The decision to accept

intention

list

to

letters of

made

was

after

formulation of the necessary rules
and
machinery
forhandling
■

trades. The
a

new exchange will be
wholly owned subsidiary of the

York

Mercantile

which has been in

eration
the

since it

State

Inquiries
stock

of

Life Investors

Little

Board".
•

York

13,

of

about

York

ties

intention

be

to

list

addressed

to

City to

engage

business.

in

securi¬

a

Officers

are

Mit¬

president

and

WithF.

securities

W.

I. du Pont

BOSTON,

Mass.

Atherton

&

members

of

Co.,

Boston Stock

FRANCISCO,

Donald R. MacDonald is

Francis

I.

du

Pont

now

with

Co.,

York

Exchanges,

should

be

Securities

317

City to conduct
ness.

Officers

Street, New York
securities busi¬

are

Benjamin Hora-i

witz, president; Bruce Goldstone^,
vice

viously with Taylor & Co.

secretary-treasurer.

president; and Max Friefeld,

NEWS ON TEXACO

TV-

PROGRESS

made

G. Hassman, of A. G.
Co., Incorporated. The

&

tariff $4.50 per person.

The

Eagle Food

underground road to market

Centers, Inc.
Stock Being

Offered

Offering of 188,500 shares of
$2.50 par value common stock of
Eagle
Food
Centers,
Inc.
was
made

on

share.

Of the

Aug.

500 shares

licly

by

19

$17.50

at

per

total

offering, 168,being offered pub¬
underwriting group

are

an

headed by Merrill
Fenner

shares

Food
of

Lynch, Pierce,
Smith, Inc. and 20,000
being offered by Eagle

&
are

Centers

the

to

shares

employees. Any
purchased by
3 p.m. CDST on

not

employees by
Aug. 19, 1959 will be
by the underwriters.
•

The

company

from

ceeds

purchased

will receive

the sale

of

pro¬

of
shares; 28,500 shares are
being sold for the account of sell¬
ing stockholders.
The
company
160,000

these

will

of

use

these funds to redeem all

the

stock of a sub¬
will
then
be
wholly-owned): to pay oustanding
6% subordinated
notes; to pur¬
preferred
sidiary
(which

chase

equipment

Teased

from

and

to

in

G &

W

four stores
Realty, Inc.;

off chattel mortgages

pay

equipment in five other stores.

on

The balance will be added to gen¬

eral

funds

to

in • part, ex¬
six new super

meet,

of opening

penses

markets in

1960.

Outstanding capitalization, upon

of this financing will
$684,000 of 6% subor¬
notes; 209,431 shares of

completion
consist

of

dinated

$2.50 par value common stock and
444,903 shares of $2.50 par value
Class B
The

common

stock.

operates a chain
markets, 18 of which
in the
"Quad-City"

company

of 30 super
located

are

(Davenport, Iowa, and Rock

area

Island, Moline and East Moline,
111., plus adjoining communities).
Ter. super markets are operated
in
various
eastern
Iowa
cities
within 165 miles of the Quad-City
Two

area.

have

markets

super

been opened

within the past year
also approxi¬

YESTERDAY.

Texaco's

early

growth

was

speeded

by

its

promptness in getting pipelines to rich new oil fields as they were
Texaco

in the Chicago area,

discovered.

165 miles from the QuadCities. In the past five years the

strategic pipelines. In fact, one of the first acts of Texaco when it

mately

has opened ten stores
completely
remodeled five

company

and

additional
.

A

*

was

was

born in 1902, was to

a

pioneer in

complete

longer,

more

line from the fabulous Spindle

top field to Port Arthur.

1

NEWARK,
name

of

N.

The

firm

Trading

Cor¬

J.

Investors

—

More oil is transported to market by pipeline than by

^ TODAY.

Now State Securities

poration, 24 Commerce Street has
been changed to State Securities

Corporation.

any

other carrier. Texaco's

own

consumer,
cost.

And

this
it

means

more

and better Texaco products at lower

symbolizes the enterprising spirit that characterizes

Texaco's corporate

NORFOLK,
Bros.

Va.

operations.

Kaufman

—

Co., is conducting

business

National

Building.

from

Bank

a

offices
of

securi¬
in

the

Commerce

TEXACO
...CONSTANT

PROGRESS

Officers

are George M.
president; Charles L.

Kaufman, Jr., secrbtary-treasurer.

Kaufman,



7,000 mile pipeline network is an

important factor in the efficiency of its integrated operation. To the

In Securities Business

ties

a

constructing

stores.

"

IN

OIL'S

FIRST

CENTURY

Corpora¬

a

with Elmer
Becker

on

Mainland Sees. Opens

■

Reservations

St.,
and

Sept.
1st will admit Archibald Douglaa^
Jr., member of the New York
Stock Exchange, to partnership.

Montgomery Street. He was pre¬

Teamsters

Congress

New

at 250 West 57th

Calif.—

&

Schirmer,

—

50

the

tion has been formed with offices

(Special to The Financial Chronicle)

SAN

19

Schirmer, Atherton
To Admit Douglas

Mainland

1872.

John

formed

Cohen, secretary treasurer.

projected

the

been

Harold

chartered by

in

Planning

Planning Service
has

Plachter,

Exchange,

York

York

chell

continuous op¬

was

New

New

with offices at 170 Broadway, New

exchange and about letters

should

New

companies. Because of its

tions, the projected exchange has
been

Executive. Director, New
Exchange,
6

Mercantile

Harrison- Street,
N. Y.

interest in newer, smaller corpora¬

of

one

three-man

a

national

New

-

move

(743)

many

in

by the New York Mercantile Ex¬
change
and
will
be
primarily

1959, at 12:15 P.M., in the

Guest

Smaller Cos.

in New York is now

Bed Lacquer Room of the Palmer
House.
.

Exchange

A third national stock

a

ust 20,

Financial Chronicle

20

The Commercial and Financial Chronicle

(744)

Continued

from

firct

J

J

duced

onne

"

y

these

L-V^WI
h_
"
j

_

j

SSS*nf

Thic

Ivl

fnrthpr

ic

^

imately

in

chnwn

industrial

the

classification of term loan customers

r

in
v

tPiv

one-

a

fhiouXwhfch
enlarged
g

banks

M<mire

mav

Tegaf lendteg^imits.
5

has

loans

syndicated

been

and

thus involves the participation of

5

.

Industrial

of

Growth

Larger

two

or

banks.

more

These syndi-

cates have been arranged mainly
bWithe largest banks for the our-

Corporations

holdings in
adequately meet

more

The

been

50%,

loan

to

pushed to
the

deposit
peak

industrial corporations pLfof"Sing^tee.reSh^eSinc\gr^?ldaStWa^h^V%proxf' proportion ^^loanr^ranged^n
mately ^30,000 business termaparticipation basis rises gas the
nuafly1^6th^UniteS^tat^ and come? ^ifican^for8 kians bof

Reserve

jesses,

anticipate

Bank

^ntffhuting
of

ment

been

Commerce

has

S?6 last3d?caL mo?m?o?m)rate
rn

Tr

P r

^?twn
1773

and'

?Q5fi

1Q4R

525in

54

490

and

'in

these instances

with

In

the

537 in

each

bv far the

of

greatest

the mergers ocamong acquiring concerns
the
largest
assets,
more

percentages
curred

in

1955

1957

In

alone

sectors

acauired

were

in

mining

industrial

firms

•nerind

acquisitions

and

s

mannfartiirW

00 000

Depart!
Sly

The

factors

the

of

one

acauiring

«C4q qqq qqq

1550 000 000

and

both

In

the

1948-54

further

increases

in

or a stron& banking

system and bers of

and in the year 1957, 36.1% of the

other

mergers

and

occurred

among

acquisitions
acquiring firms

m

Continued

from

Ap

involving

insured

banks.

The

page

brokers

must

also

and

in

Of

dealers who

interstate

sell

commerce

register with the agency. It
requires further that corpo-

securities exchanges must file an-

the

of

1.0%

in

mergers

of

those

in

1948-54
1957

oc-

listed

on

the

nual,

14

semi-annual and
reports with the agency.

,

r* r

I

r\

act

as

zations

under Chapter X
Bankruptcy Act.

directors and 10% stockholders of

1950.

banking laws relate the size of
individual loans to the size of the

an.d anY changes in sBuch ownership. In addition, that Act provides

seemed

lending bank, the above figures
point out the need for larger

that proxy solicitation material to pearing
be u.sed bY ksted companies must ticular. In 1950, the

banks if the banks

be filed with our agency at least
ten da^s beforc it is used.

fo

adequately

and

to continue

are

their

serve

cus-

tomers. It is not

always feasible to
syndicating a loan in an

resort to

attempt to retain

customer.

a

of Term

Corporations
to

term

utilization

loan,

of

this

credit with maturities of

and
bank

over

one

often
as
long as ten
In the period 1955-57 large
than one-half of

more

the

outstanding amount ot these
loans, while banks with deposits
of under $100,000,000 held
less
than

one-fifth

of

.

the

dollar

amount.

The

Federal

referred

major

to

Reserve

above

industry

rowers

survey

shows

that

of

groups

shared

in

the

all

bor-

recent

growth in term loans with special

emphasis,
tries

in

however,
which

fixed

cauital

heavy,

for

ber products

ranges

gin

for

relativelv

were

fabricatars

ue'trnloum-rnti-!

of

public

businesses
the

five

indus-

expenditures

and

lareest

borrow

upon

example

manufacturers
The

longer

vears

and

utilities"
tend

to

maturity
More

over

than 75% of the term loans at the

largest banks
borrower

reorerent

1with

$5,000,000. Banks
est

sole

size

groups

source

credit

of
in

to

over

the two lare-

were

almost

tho

of term loans to larger

firms. The Federal Reserve

nnint*

out that this concentration of bor

rowing reflects the
banks with large

fact

that

resources

onlv
aro

able to meet such extensive credit
needs.
A

close

addition to these two acts,
we are charged with the responsibility of administering four other

"
relationship

betwppn

Size of bank and «ize of borrower




sizable

build-up

in

the

capital

Up

•

T

^a

rlnocified

HirpPfrrrv

ft

'ovr^iic

stranger for

a

get something in writing. Then,
I implore and beseech you to get

-

1950, the market
have rocked along
listlessly without apto go anywhere in par-

of shares sold

on

total number

all United States

securities exchanges

was

893 mil-

lion

shares. By 1958, the total
number sold had risen to an annual rate of 1,400 million shares.
the

first
on

half
an

of

1959,

annual rate

the
were

in excess of 2 billion shares.

In

The la?f tw? acts both of which found 1.000 employees. Brokers

ula*ory. P°wer over investment
C01?pa,nies, or mutual funds. Those
publlcly h.eld funds must, of
c?urse' register with our CommisS1°n aa musf comPly with many
pr,0vl?10"s protective of the inter°+
security holders. The
J^.vesJment Advisers Act merely
,?? to regulate persons who are
•investment advice for comt

In addition to these

statutes,

we

security or whether

a

client
not, but

should purcertainly

your

or

chase

or

want to know what

we

of

course

con-

is

being employed by unscrupulous persons in selling securities.
Believe
me,
we
have

duct

methods to deal with such persons
effectively and expeditiously.
Let me, at this point, say some-.

thing about the investment banking profession. It is possessed of
a ireat many men of the highest

moral integrity and

summated

ously

honor.

Few

in any year,

either on

engaged
in this business
live by a premise that

have

to

^
ishth?r ^ 1 T?
iUrnotthese persons about whom
i
a

talking.

am

Personally, I have

tremendous respect for members

of

the

honorable

securities

in almost
deavor in life, there is
But,

ness.

which

as

because

avarice

neSs,

of

a

oi

en-

segment

shortsighted-

greed

or

busi-

every

will

act

own Personal inter-

f?ts without any consideration lor
*he P™verbial Mack eye such
conduct may give the industry as

J* iS

this ilk whom you

1

tele

mans,

x

louna

iuux

™as one m wmcn a nst_ ot

omv

J;U1

^ r^nrl wic
?r ^
.
menuonea.

teiepnonea

tnis

company

t

might

also

and

your

clients

these

that

say

sophisticated

ly

i

3.930 in !950 to 4,906 in 1959.

In the 25-year history of the
Commission, there have been more
than 15,000
registration
state-

^octors!
of

investor

located

persons

y0ur

SP°K^ jo one ot its employees, i
^
ar Vs

they

was

r

wouAa cost me ^,ouu.

l was also

1Pf,or^?ed tba^
s

cl1?a<!

aatcll1?

,

+vf

•+1

oer^

t

,,

vwf

>

whether it
\\sl- N

+

was the company s best
<A*ru

jjf^.w19u.ldc®st T?'®? muX

?

in

found

locality

any

services. If they come to you
resun 0f SOme telephone call
have had from some compiete stranger, I hope you can asas a

sist them to guard against their
own folly by telling them not to
invest until they
These
cause

was

in fact, they seem to love
gut these are the types

anci they are y°ur Prospective
cuents who are in real need of

ana

,

ame law in 1940, are the In- aild dealeis selling securities in
vestment Company Act and the interstate commerce registered
Investment Advisers Act.
The With our commission fose from

reg-

the merits of
you

anything

you

and,7rld^rfhn fraudulent manipulators usually
I
fn!r don't get anywhere with the high-

terms of the dollar value of these if1**1 fs.
askea. inat was a
Pany Act of 1935, which has to do sales, they rose from $21.8 billion list wmcn contained
and nere l
with the regulation of the public in 1950 to $38.4 billion in 1958. Qu°te mm
5U,(J0U names ot curutility holding company systems For the first half of this year, the rent wid°ws with, net assets in
and their operating companies, sales were at an annual rate in excess oi ^du,uuu.
i asked mm
There are today some 22 such sys- excess of $50 billion. From 1950 what a current widow was and
terns which are required to com- to 1959, the investment banking be sald
aSain I Quote
A curP'y with regulatory provisions of business employees rose, in ac- rent widow is a widow who has
that Act in terms of their finan- cordance with the Department of enjoyed that status for less than
cial plans. These systems contain Labor's Bureau of Labor Statis- six months!
The mere telling of
s0.me 176 operating companies Lcs from 60,000 in 1950 to 84,600 this incident
I believe, emphawith assets in excess of $10 billion, m 1958, or an increase of 24,600 sizes the diabolical nature of the
The Trust Indenture Act of 1939, People. It appears that this in- scheme which can be and is emwhich requires that corporate in- crease only includes employees ployed by certain unscrupulous
dentures contain certain protec- fho have some connection or re- persons to sell securities which,
t!ve provisions for the benefit of lationship with customers. It does in almost any sense have little or
bondholders including a require- not include the many thousands no value Throughout our vast
^ent that the trustee
the in- of employees who are engaged in and great country, persons are
denture be completely independ- relatively minor positions within being called by long distance teleent from management. This latter the investment banking business, phone, only because their names
Act °Perates Comparably to the Merrill Lynch, Pierce, Fenner & are to be found on a similar list,
1933 Act in that it is basically a Smith has some 6,000 employees, by salesmen whose only interest
disclosure act complementing the Blyth & Co. has around 740 em- is to make a sale, whose only
1933 Act;
8
ployees, and Reynolds & Co. has puipose is to find another sucker,

^ giV6S the Commission

tell

cannot

»

n^aaeu-Baptists, in tne small type
advertisements in tms directory,

until

to

The Public Utility Holding Com-

h

client to ask the
prospectus and thus

VoTlfcitv'twovears mUSt a?wayS be °n gUard

ixsiing

somewhat

For

Tbe Four Other Acts

X™

nf

markets which has occurred since

shares sold

and

banks held

companies must file
their stock owner-

to

Loan

the way for the

prepare

greater

years.

as

In

increasingly

are

the

mergers

year

listed

statutes:

.

Attraction

attracted

such

the abstract of

see

your

pages of companies which would in
center of a financial comlurnisn me a list oi any conceiv- mUnjty; they often seek out small
The important thing that I would ?
®
T .^pn?°;s. nnnC°«rj
towns to talk to uninformed, unlike to talk to you about is the
fj S ouiamea a lisx or ou,uuu reci- jnitiated local businessmen or

ship in their particular companies

both

the

—

state

Since

Get

Tbe Capital Markets' Post-1950
Build-Up

federal

-

of

ordei

in

t%o?sa7roVT^ifrbivinln;
vestors from their life savings,

trict Court in corporate reorgani-

reports

with assets under

most diabolical schemes

•

advisers to the Federal Dis-

national

periodic
Officers,

.

SEC ReOU
atlOll
iw^uiuiivu

acquiring concerns
$1,000,000.

among

title.

"sWcw/^nd s°lely llr iJs

?f* St^
f

rations

among firms with assets in
the latter. On the other hand, only
and

occurred in the New torneys they can be in a better
York area where the number of position to furnish to their clients

3

\/

29.4%0

curred

of the outstanding postwar mer-

gers have

beentf in" ^ ^

with assets in the former class and

3.2%

profession to educate

our

.

25 Years
securities

would want to

oftefslc'and'w^a^avfbone ?ati°nal se^s exchanges or
that attorneys who desire to ob- predicated^ on oraf representa^Wi^^tem ^iPSk u^ tions thatJ will buy>r '1 will
out for guidance so that as at- fny' welshing! 1 Persons03 coStteu-

It is interesting to note, however,
The Fraud Element
credlt demands have expanded, that in evaluating New York exOne of the really bothersome
Business loans outstanding in the perience, the Syracuse University features of the surge in capital
second Quarter of this
year Research Center concludes that market price conditions is the
amouQted to $19 bBbon, repre- bank mergers have been benefi- tendency for such activity to atsentinS the largest Postwar in- cial to the merged institutions and tract into the market place percrease for the sPrlnS quarter, have not injured the remaining sons who are seeking by schemes
Many commercial banks have re" independent banks.
and artifices to defraud public

all

Thursday, August 20, 1959

.

rTnohart Jnd Rnhl°rf
statutes' fWe hav/ spent oveJ
lawyars especially, realize
Fulbright, Capehart, and Robert- the years a tremendous amount people
that transactions in amounts of
fon- Tbls bAU recognizes the need of time in trying to assist mem- many billions of dollars are con-

Expansion of Credit Demands

and

period

of

In thC present b"siness "Psurge,

the two asset classes $10,000,000 to
over.

or

'

in

concerns

than

centers

credit associated with inventory
accumulation and with plans to Throughout the Commonwealth of
accelerate expenditures for the Virginia, attorneys, who by reaexpansion of plant and equipment, son of study and understanding,
The outlook appears very fa~ become conversant with the acts
vorable for banks to play a more which the SEC administers, are
significant role in reinforcing and inevitably going to be in a posiPromoting
general
economic tion to reap the benefits of this
Srowth- Mergers represent one expanding capitalistic system. We,
Path. Early opposition to the mer- as an agency, have always mainger ldea seems to have weakened tained a desire to be helpful in
considerably. On May 14 the guiding attorneys who are unpassed mf gar iegislation familiar with the intricacies of

of

snecificallv

other

areas

financial

to raise needed
capital for
expansion
and
development
from
local
sources,

a

have

in

officials issuers will tend

Many

meriers

interest
so-called

our
country, i.e., Wall Street in
New York City and LaSalle Street
in Chicago, Illinois.
It seems to

approx-

postwar

and
the

.

about
i level of 1957. As the year pro- me that more and more corporate in touch with us. We, of course,

C-irO\A/t"h
11VJIVyYYIII
.

S™r?«nn
thfTpr^nJ o?
amon^ Lnks S various size
Wlrrnvprshldnis thT
SouoT The Federal Reserve
? nfhefs
Psnccfal
ftates that industry Soups hlav^
ilvwetehted^ bv larle corporate
ShAr
nitinms nrohibhs organfzations accounted for more
Iv
iwnpS
'ionw d 1 than thre^-fffths of^he termToan
C?
thus
rl ostee
to
lolume of banks with total debankson! other door of' possible posits of $1 000 000,000 or more.
Li 1
SS In addition approximately
mJSS renre/ent method third .of the^doHar vXme of term
fr

to

needs.

ratio has

Bank Mergers: Important Factor
'

their security

order

.

are

can get the facts.
available largely
be-

the SEC insists that, before

public sales of securities are made,
registration

a

all

which

statement
the

ge^s

for^b

and

distributed

facts

to

filed

be

public

inves-

^ors>
Tlle

injunction Use
few cther

f

yP

e

of

cases

with which

involved

we

have

You may

recently been involved, you may
recall

court

tha^;last Junei ue went to

in^Texas^lung an wjm

J °n to prevent the sale otsecuri
'eS„by ®
sought

intrastate ottering

wmcn

sou^t

:omply^lto an^exempuonmom

jne registration requirement

ot

statedI that_the company wa seek
ohta wWch

^f

was

space ship wmcn was to t«me 011

from Space Maryland on a 14day trip to the moon in De^-m-

hfr of tbls year- In ?he Prospectus
there was an assertion that a do-

The real reason I tell you this
story is to alert you to a problem

^y0"^^m?0flfoO

which

scfcely.believe it, but public in-

can

is

only be

policeman
can

widespread

do

a

stopped

gTthe

can
world

client if you
the dangers

of

but which
if the SEC
word

good for

You
your

can apprise him of
of dealing with per-

^

,

..

..

.

+

You'd
l-t

vestors m Texas were purchasing

thlTs

In

another

case,

we

recently

went to court to Prevent a person
fr°m selling securities m a non-

ments filed for a total dollar value sons he does not know, or if you existent corporation
on
whose
of $161 billion, yet one-third of can convince him to use a com- purported board of directors_was
these filings in number and one- parable amount of common sense claimed to be a Member of Conhalf of the dollar amount sought as he would use in buying a new gress, a high-ranking General who
occurred in the last six years.
car or a new house.
He ought to bad been d<;ad for six months,
It is both logical and natural at least perform checks similar to and tbe President of the Gettysthat accompanying this really picking up the hood of the car to burg College.
fantastic build-up in the capital see if there is an engine. CerThese are only two simple exmarkets will be great stimulation

tainly

in

buying

a

house

you

amples of the types of proceedings

Volume

which

190

in

order

to

the

protect

securities markets from fraud and

misrepresentation,

In

j

fiscal

1959, we commenced
proceedings against in¬

numerous

terstate

brokers

dealers

and

who

tial

to

the

functioning of
What strikes me as
being completely anomalous is
that
these
same
appropriations
committees of Congress provided
our

a

ties

broken

where

been

filed

under

'

{ t'

War.

Employees

We have been,

The

value

the

on

of

New

all

stocks

York

Stock

of

changes
lion.

all

stocks

around

was

In

all

ex¬

$337.6

bil¬

on

registration

filed

with

our

3933

Act

June

30,

total

constructed

dollar

for

fiscal

secondary

313,
registration
year

1959,

for

a

$16.6

over

34%

some

statements

last.

their fellow-travelers
the Government.

tion

of

failed, but they
thing—America

be¬

can

From Northern States Power

NSP

these

processes

addition, we
investigations
and
criminal

more

partment

of

previous

year

opened

the number

in

more

referred

we

the

to

cases

Justice

than

De¬

in

any

history. Yet
employees in our

of

January,

fices

of

the

for

and

agency,
to cut

by

of

Thomas

the

needs

for

appeared

we

Subcommittee

ernment

That

Matters

clusion
this

and

that

of

the

Senate

heard

our

pre¬

to

the

con¬

came

it

essential

was

properly staffed
and that it be given a proper ap¬
propriation.
It restored, our ap¬
propriation in toto, i.e., put back
the

45

which

would

atomic

might

last

tion
for

new

efforts

industry's

of

and confidence

in the

and

losophy

in

der

accomplish

to

a

placed

have

political

agency

arena

or

of power as

sources

for

placements

fossil

REPORT
we serve

plant

power

re¬

fuels.

plant

near

feed

will

its

S.D.,

the NSP inter¬

system.
be

will

It

into

1962,

IN

Sioux Falls,

power

connected

And

COMPLETION

FOR

SCHEDULED
the

named

is

purpose

The

Pathfinder.

to amass path-

costs of generating

finding data on

electricity with

a

Atomic
and

full-size plant.

practical,
To

in

fuels

atomic

this

electric

end,

10

in

the

companies

other
are

Midwestern

Energy

Commission—sharing in

owner

as

and operator,
cost

with

commensurate

research

costs.

development

NSP>

joining NSP

project and—along with

in

burning plant

the

of

a

will invest a

conventional

expected

are

of comparable size

development

Research,

to

the

to

total

sun

fuel-

and location.

and construction costs

about $31,300,000.

Recirculation

Controlled

our

use

steam

direct

$175,000,
provide for 20 per¬

heat

exchanger.

at this point that

fuel

on

an

our

.

additional

lost

Another

total

benefit

of

the

the

of

efficiency

eliminating

We

in

more

nearly

core

for an

step will

superheater.

ackl

The

Boiling Reactor will

reactor

the need

forward

the

provements,

United

from

Pathfinder plant.

be

to

turbine,

intermediate

use

of atomic

Along with

other im¬

should help make atomic pov<v>p

these

competitive with today's

fuels.

States Treasury 34.6% in terms of

the fees which

we

At, your

charge for reg¬

istration statements and in terms
of the

l/500ths of 1%

posed Upon all sales
securities exchanges.
In

national

on

we

will be glad to send ad¬

this

new

pioneering plant.

KANSAS

—j
i

our

sonnel

do

times

than

request,
details

'^MISSOURI

If

investigative work, we
are opening more
cases than we
are closing and, in fact, we sim¬
ply cannot with our limited per¬
at

ditional

charge im¬
on

a

much

seems

more

to

be

what

ject

little

more

Midwest

holding operation.

Yet the

appropriations committees of Con¬
gress failed to give to this agency
amthe funds which

we

felt




essen¬

CO-OPERATING

COMPANIES

than

serve

from

the

pro¬

the shaded areas in six

states.

nections,

this

in

they

Through
can

Pathfinder

intercon¬

also draw power

plants

this

in ot-

personal aims

objectives. This

to

appropria¬
$7,705,000""we recovered

the

investors will continue to

have faith

thus

say

of

year

that

is

and thus

plant,

power

the

sons.

I

capital

the

of

be preserved so

engaged

bodies

two

partially

to take

us

public

honesty
can

indulged in
pound-foolish phi¬

reactor

is

program,

given back $300,000, which

persons.

the

markets

penny-wise

in

favor and partially against us. We

allows

and

time of

I believe that the Com¬

a

system.

a

operation in 1962

Senate occurred in which

resolved,

were

activities.

mittee members have

ADVANCED TYPE REACTOR AND SUPERHEATER will

differences of the

were

properly at

House

the tre¬
staffing

unprecedented growth in financial

cial

atomic

Senate!

States

and the

over

to protect the
expanding finan¬
Unless the integrity

attempts

this agency

soundness of the

Company and the 4 states

A conference, between the House

the

of

Thank God for the"

$475,000.

United

one

of

that

be

agency

SEC, which is

the

of

recognize

be¬

Inde¬

on

Appropriations.

onz

Committee

sentation

kw

the

pendent Offices and General Gov¬
Committee

the

to

importance

of

proceeded drastically

Subsequently,

mendous

on

the

000, allowing us an increase of
only 10 persons arid stating specif¬
ically that the; JO persons must
be used in our regional offices.
fore

is

Committee

failed

has

project of building a 66,000-

develop

Committee

chaired

appropriation by $475,-

our

the

went before the

estimate

our

in

Independent Of¬

Houston, Texas* .That Committee
heard our presentation, listened
to

taking

Company,

the AEC

Commission under
demonstration

on

Albeir'f

Honorable

Power

States

Northern

we

House

Appropriations,

at

co-operation with the Atomic Energy

sharing

Subcommittee

be

ing the financial markets.
In my judgment, the Appropri¬

our

agency has fallen from 998 in 1950
to 937 at the end of June, 1959.
In

Economy

Stake

we

is a situation
catastrophe
right in one functions of those markets, our which I deplore and about whicjk
be destroyed whole capitalistic economy cannot I wanted to say something to you.

pushes

due

this

increased

statements.
In

ac¬

to

PRESIDENT'S

more

filed

This

which

Capitalistic

which

facing today. It is the
SEC, as the "Investor's Watch¬
dog" and as "Uncle Sam's finan¬
cial
police force,"
which
is
charged with the duty of protect¬

ations
Our

war

21

still

are

were

number has literally swamped the
SEC's
Division
of
Corporation

Finance

facilities are."

the agencies of your Government,

Russia's predic¬

financial

a

sound

a

adequate financial system is
just as important to us today as
the Army, Navy and Air Defense

succeed in the cold

ending

Sifrere~,l,226

or

S.

other

ana

which

Russia

U.

words, the maintenance of

It

mar¬

destroyed as a result of the col¬
lapse of its economy, being fol¬
lowed
by the Communists and

ac¬

job,
the other
purposely

materials

the

In

upon

capital

recently said:
ago,

years

expected

missiles.

and

under the

valtife~-df

over

"Several

tually

non-permanent,

quality

the

failure just as com¬
by bombs, planes, sub¬

as

.

billion, as against 913 for $16.9
billion in fiscal 1958. Thus, there
were

of

restrictions
in

A columnist

by financial

statements

agency

there

kets.

the

on

humor, said to me
day that it had been

Exchange as of June 30, 1959 was
$298.8 billion, as contrasted to the
$89 billion figure I mentioned as
of Sept. 1, 1929.
^Incidentally, the
value

men

I have al¬

as

you, very busy during
the last year; so have the market

listed

of the

activities

our

the Second World

during

One

serious

cause

That temporary

expanded

Avenue

budget limitations which Congress
has imposed upon us are going to

housed,

dilapidated, World
shack"

down,

Constitution

on

It is my humble belief that the

the

of

are

in

ready told

places.

we

Government's

tivities

There is another important mat¬
ter I would like to discuss with
you.

renovation

Second Street.

eral

Greater Activity, But Fewer

the

temporary

Navy Depart¬
buildings con¬

still there.

are

building, built in 1942, was de¬
signed to accommodate the Fed¬

and misrepresentation.

marines

the

to

during the First World War. They

includes

War II temporary tarpaper

1933
Act, and for many other
sundry types of misconduct, in¬
cluding the grossest type of fraud

'

for

building in which

on

pletely

permanent
ment

which has often been termed "the

the

cause it was hoped that the build¬
ing would not become comparably

expenditure of around $500,-

000

registration state¬

no

had

which

(745)

structed

budget for the General Services

Administration

protective
provisions of the 1934 Act, such as
finding themselves completely and
entirely insolvent, selling securi¬
ment

proper

agency.

the

in violation of the

were

Chronicle

The Commercial and Financial

.

.

.

have been compelled to

we

institute

Number 5874

President,
Northern States Power

Company

22

The Commercial and Financial Chronicle

(746)

Legal Barriers Secondary

USA-USSR commerce. Cites 1958 figures as con¬

"In

tinuing 10-year record of

negligible volume. Points out that deterrents
Points out that the Soviets are only
buying the most advanced machinery and technical data.

cious

antedate the Cold War tension.

ments

interested in

slight increase in Soviet-

a

result from
the possible occurrence of an eas¬
ing of Gold War tension.
The
Soviet leaders'
pleas for more
trade and the representation
of
U.
S.
policy as anti-trade are
mainly propaganda moves, accord¬
ing to the August issue of the
monthly "Morgan Guaranty Sur¬
trade

American

can

the

"Among

by

visiting

this

themes

recurrent

officials

Soviet

high

played

country,

of the

one

most insistent has been their pro¬

Soviet

the

that

testation

United

States.

Mikoyan

mier

the

desire

during

his

pressed
trade

Union

trade with

wants to carry on more

Deputy Pre¬
repeatedly ex¬

increased

for

visit

here

last
spend

wanted
to
of his time meeting
and

January,
most

repre-

First Dep¬

sentatives of business.

uty Premier Kozlov reiterated the
he

last

here

theme

when

month.

Premier Khrushchev took

dccasion

the

was

Vice-President

of

Nixon's visit to Russia to bring up

the subject, and it will be surpris¬

ing if he does not refer to it dur¬
ing his visit to the United States
scheduled for next month.
"American response to these

portunings

has

mental
shown

im-

Noticeably

been

Neither

unenthusiastic.

govern¬

private quarters have

nor

substantial interest in
following up the Soviet overtures.
any

An examination of the

for

reasons

this reaction suggest

pects for
tions

that the pros¬
appreciable rise in

any

the

between

commerce

two

na¬

slight.

are

Present Level of Trade
"The current volume of Soviet-

American trade is negligible. The
U. S. in 1958 bought $17.6 million
worth

of

goods

the

from

billion

$3.5

million,
principally
steel,
chemicals, and machinery.
Not

since

totaled

rubles,

and

world

free

the

imports

1948

have

significantly

the

figures been

higher;

and

even

then the total movement of goods

both ways was only $115 million.
"The explanation of these low
levels can be found in factors both
and old.

For

thing, it is

one

hard to envision extensive buying
and selling between two nations
which for

than

more

dozen years

a

have been engaged in a confronta¬
tion most pften described
as
a
'cold war.'

This state of tension is

the reason, of course, for such re¬
strictions as the United States en¬
forces

from

in

the
at

free
about

the

to

50

the

on

kinds

of

goods

American companies may ship

to

She

has

dollar,

ore

metric tons in

in

only

to

1955

189

12,000 tons

18,000 tons last year.

1957 and

Sales of aluminum, which totaled

only

1,000

1951-54,
1955-57

official

sian

the

in

tons

were 81,000 tons
period—although

in the Soviet Union.
basically to

age

goal

a

self-sufficiency, Rus¬
sia has proved neither a depend¬
able
supplier nor a steady
customer

industries

the

for

countries.

other

of

is
an
active buyer of the most ad¬
vanced types of industrial equip¬
ment, but
experience
indicates
this probably will last only until
her technicians have managed to
copy
the imported designs and

Steadier

"Rather
ratic

Sources

than

rely

Needed
on

er¬

as
Russia affords,
companies prefer to de¬
velop steady and assured supplies

resources

most U. S.

of

materials.

raw

at the cost of

so

vestments
facilities.

in

Many have done
making large in¬
production

overseas

Even if individual firms

willing

were

to

jeopardize

their

relations with regular suppliers in
order

to take advantage of pos¬
sibly temporary Russian offerings,
many would still be restrained by
consideration of public opinion, a
substantial body of which regards

dimly

kind of trade with the

any

Soviet Union.
"In

addition, more than ade¬
quate supplies of virtually all in¬
dustrial

raw

materials

which

have

been

removed

relaxed

as*

to

or

long since
completely

trade

with

more

friendly countries.
"The

Soviet

Union

has

seen

propaganda opportunities in these
American

policies,

presenting

as

they do visible obstacles to trade.
for the Soviet leaders'

reason

frequent pleas for more commerce
is doubtless
the

U.

a

by picturing it as anti¬
Conveniently, the Soviets

able to achieve complete con¬
trol of their trade without
using
are

formal

restrictions, since the gov¬
ernment is the sole trading agent.
i

currently

being

offered

by

date

it

Union

however,
war

tension

historically.

has

never

tant factor

in

go

been

world

an

ante¬

Soviet

impor¬

trade.

Not¬

withstanding her ability to create
considerable temporary impact in
a

selected

situation,

she

even
role that is, in

now

a

plays

total

on

af¬

China

exports from the Soviet
bloc because of the ban on imports

bloc country of products

any

which

presumed to be wholly
partially of Chinese origin. Tin,
are

antimony,
bristles
ities

tungsten,

to offer much scope for in¬

creased

try.

Soviet sales to this

The

agricultural

coun¬

production

"The Soviet

Premier

from

President

more

over

Eisenhower

a

letter

Khrushchev
w

placed principal emphasis

to

h i

c

h

the
prospect of Soviet purchases from
U. S. industry. Writing before the
American economy had begun to
on

signed to increase Soviet prestige
and

are

ofteh

cal programs.

tied

in with

politi¬

Having deliberately

de-emphasized the manufacture
consumer

the

goods

for

many

of

years,

Soviets cannot have much to

sell in that category, and there is
also

have

.

little
or

are

indication

that

they

likely to develop

an

Of

strategic and included in
Department of Commerce's

the
prospects for
- American
trade
improved by any ap¬

course,

Soviet

more

be

would

preciable lessening of the tension
between the two countries.
But;
even such a happy development as
termination of the cold war could
not be expected to produce a mas¬
sive

flow

were

also

practices.

severely limiting consumption
would both have to be relaxed.
"There

are

areas,

even

under

in

which

circumstances,

present

be increased;

could

trade

part they are not areas
in which both sides can reconcile

except
to

Canada;

applications

and

export them to the Soviet bloc

subject

are

ment

what

to

Commerce

of

the

Depart¬
calls a 'pre¬

"America's cold-war allies have

applying

in

some

sales

their

to

their

ties

of

re¬

goods

gain

result there

their

have

been

As

a

American firms have

permission
ment

Soviets

countries.

of

partment

justifies

its
that

which

the rest of the world

over

Television Offering

De¬

in

that her ban is

effective in keep¬

Oversubscribed
Underv/riters led by J. A. Win¬

Co., Inc. and Netherlands
Co., Inc., on Aug. 14

&

ston

Securities

publicly offered 200,000 shares of
stock (par 25 cents) of

common

ing the most advanced equipment
and processes out of the hands of

Hudson

the

sold for

regardless

Soviets,

other

countries may be

of what
willing to

sell them.

is

only

the

most

the

company,

shares

were
and 75,000
sold for

were

stockhold¬

account of certain

offering

This

scribed

was

oversub¬

and the books closed.

Hudson

advanced

shares

125,000

additional
the

What Is Strategic?

Television at $5

Radio &

share.

per

ers.

"It

the

obtaining orders now.'

hastened to

instalment

extension

of

suggest that

payments

long-term

and

cred¬

...

that produces motor grade
gasoline can make aviation fuel.

conceded, infer- The same type plant that produces
entially, that Russia would be in fertilizer can produce explosives.
no
position to pay for any sub¬ The same type plastic that is used
stantial volume of U. S. shipments for squeeze.bottles and packaging
also goes into proximity fuses and
by exports of its own goods.
The-

its.

letter

military communications wire.
Long-Term

Credits

The main considerations which

Banned

"Most of the items in which Mr.

Khrushchev

particular
interest—one
example
petro¬
chemical
plants,
complete
with

plans to

part of the

us

proceeds for acquisition of
additional inventory, reduction of
sale

retirement

and

obligations
added

possible

promotion,

sales

S.

credits

them

disposed
the
to

Mr.

Khrushchev

to

if

even

do

they

were

Provisions

so.

of

Johnson
bar

Act, passed in 1934
long-term credits to any
default

on

still

debt

apply

to

to

because, like
many other countries, she has not
maintained
payments
on
the
American loans granted in con¬
nection

with

amendment
Johnson

World
in

Act's

countries

War

1945

ban

in

Fund

and

settle

her

is

sometimes

strong pres¬
sure from the business community
to ease its policyson licenses. One
important reasop. for this is that,
over

found

ment

that

the

World

lend-lease

suggested —
though not by Russians—that the

the

retail sales

high-fidelity equipment. It has
wholly owned subsidiaries
New York and New Jersey and

in

operates

three

retail

in Manhattan and

one

stores, two
in Newark,

N. J.

Inv. Service Adds
CSpecial to The Financial

DENVER,
Petersiel
of

staff

Colo.

—

been

has

Chronicle)

Allen M.

added

Investment

to

Service

the

Co.,

818 Seventeenth St.
k

New Courts Branch
Ga.—Courts & Co.
branch office in
45 H,
Lenox
Square,
management of Joseph

ATLANTA,
has

opened

Building
under
J.

the

a

Maddox.
)

Goldman, Sachs Adds
(Special to The Financial Chronicle)

Soviet

CHICAGO, 111.— Harold R. An¬
derson
has
been
added
to the

completed, no further replacement
or
servicing orders are received.
The Soviets are accused of having

staff of Goldman,

virtually no respect for foreign
patents, and the opinion has be¬
from

of

of

three

West, manufacturers
disappoint¬
with

in

primarily

tronic components and

"tb^heir

trade

outlets

Union is usually a one-shot opera¬
tion.
After the first delivery is

the

case

the

have

lifted
the

of

"In general, the, government has

come

debt from World War II.

"It

sale of equip¬
technical data involve

not been under very

all

expan¬

wholesale and retail sales of elec¬

proposed

or

for

activities in the

engaged

is

pany

denial be meaningful—or would it

An

Bank, but the Soviet Union has
joined neither. ..Further, she has
to

items

I.

joining the International

Monetary

refused

ment

the

a

will

capital

working

to

company's best interests.
Incorporated in 1944, the com¬

employ in studying such inquiries
or
applications \;$re two.
First,
does

only result in making it easier for
a foreign firm to get the business?'

U.

to

the

extend

.

approve for security
But, even if the goods
sold, it is difficult to see

the

reasons.

.

of

bank loan. Unallocated funds
be

we

among those
Government is

data—are

unlikely

.

significant strategic im¬
portance? And, second,Avould a

technical

how

expressed

of

fervor

and seeming
protestations."

Hudson Radio &

equip¬

The

Commerce,

presumed that the Rus¬
this, despite the fre¬

know

quency

been denied

Russia

easily able to secure

were

other

Trade

which

technical data which the

or

from

sell

to

in

cases

some

advantage from the
does not occur

an

be

may

sians

been less strict.

of trade is that both par¬

simply because some one declares
it would be a good thing, and it

Qurtain countries. In gen¬
eral, however, their approach has

to Iron

interests. The

national

own

essence

exchange.

sumption of denial.'
her

most

the

plant

then

but for

'positive list,' individual approval
is required for sale to any country

paying for such purchases might

He

The

emphasis which
they place on
self-sufficiency within the Com-munist bloc and their policy of

require

terested in

there

drastic change in the'
ideology

commercial

and

unless

goods

of
a

Union's economic

Soviet

sidered
the

military program.

their

sion of market distribution

years' and pointed
firms are. in¬

'American

Union

de¬

con¬

for the develop¬
and for

industry

heavy

of

ment

and other related

that

Soviet

are

coun¬

items

down

ing

to free resources

ing of these applications is one of
the knottiest problems
that the
Bureau of Foreign Commerce haS
ever
faced.
The
same
type

out

the

where the sales

the

and

For

bloc.

of hold¬
consumption in order

ficial there has said: 'The process¬

in the next few

Soviets have shown

manufactures,
underdeveloped

Union

her

recession, the machinery and technical data that
Soviet chief of state played that the Soviets are interested in buy¬
circumstance for what he thought
ing. This is evident from the in¬
it was worth. He spoke to Soviet quiries
and license applications
which
the Department
of Com¬
purchases in the U. S. that 'might
amount to several billion dollars merce has been receiving.
An of¬

States,

some

in

the

from

United

to

Soviet

cal lead

Letter

ago

the

selling finished

the

tries

stringency
on
the
some
fields the
U. S. has such a wide technologi¬

actually began just
with a lengthy

year

government in

in

goods from the U.'S.
"Since 1949, U.*S. law has re¬
quired the obtaining of individual
licenses for almost all exports to

ground

campaign for

of the two countries is duplicative
rather than complementary.
The

little interest

gold reluctantly and is not likely
to use it heavily for purchases of

commod¬

category.

the

"Nor do other classifications ap¬
pear

from
the Soviet Union's
policy of balancing trade
individually with each nation with
which she deals, it appears that
the Kremlin still pares with its
ever,
usual

administers the licensing program,

Khrushchev's

Premier

trade

the

among

are

this

in

How¬

1951-56; period.

hog

and

foreign-exchange suggested could be arranged. The
shortages of those countries, and United States Government is not
perhaps necessitate an increase in likely to grant them, and private
sources
are
American aid to them.
legally forbidden to
aggravate

deeper

and

The

maintains

States

some

could be

pur¬

chasing to the Soviet Union would

which

embargo

Communist

with

important shift of American

<

commerce,
than cold

United

trade

friendly countries, in many cases
by underdeveloped nations which
the U. S. is engaged in aiding. Any

countries

"The deterrents to any substan¬
tial build-up of Soviet-American

complete

which

except

Slight and Sporadic

the

Russians have shown any interest

desire to embarrass

S.

trade.

"The

.

the

in selling—such as manganese and
It*'also underlies, at least
chromium ores, asbestos, iron ore,
in spirit, the continued application
lumber, and ferrous alloys—are
against Russia of import barriers

and credit bans which

ination.

her sales in

exceeded

This

entire

strictions

recover

such

West.

the

joined

by

example—are not subject to
duty and thus suffer no discrim¬

Presently she

processes.

policy continues to be one

for

or

"Committed
of economic

sional

considerable

rather
purchases
in
the
United States by exporting gold.
Her annual production and total
holdings of gold ' are secret but
are
thought to ber substantial. In
the two years
1957-58 she sold
$470 million worth of gold to the

their

relaxations,

minor

Soviet Union might finance

the Soviets, however—
chromium ore and crude asbestos,

from

of a serious aluminum short¬

year

are

products thus af¬
other items pro¬

Many

duced

manufactures

abestos

fected.

Congress early this

21st

from the Soviets than
suppliers. Manganese

Soviet

among

fects

the

tariff

other

and

Rus¬
Com¬

told

munist Party

period
in the
a

$40.7

imported

required for one or another of
'plans,' she has made dramatic
and sometimes disruptive selling

from

the United States
million; last year

to

"Most-favored-nation

ery

rose

that

trade

treatment, granted to the Soviet
Union by the commercal agree¬
ment of 1937, was withdrawn in
1951.
As a result, some materials
are dutied
at a higher rate when
from

example,

producers—the

block

do

they were $6.3 million.

buy imports of plant and machin¬

forays into world markets. Soviet
sales of tin to the free world, for

to domestic

totaled

develop her exports on any sus¬
tained basis.
Instead, when she
has needed foreign exchange to

her

by slave la¬
kinds of furs,

shut out in candid def¬

are

shipments

spo¬
tried
to

never

items—crab-

few

a

probably would otherwise occur.
In pre-restriction 1948, Soviet fur

being slight, has been

radic.

the

to

banned under a
1930 Tariff Act ex¬

certain

and

restrictions

tourists 10 rubles to the dollar.)
"Russia's role as a trader, be¬
sides

of

case

erence

ruble

the

market

Russia.

One

bor;

(The official rate of ex¬
change is four rubles to the dollar,
but

impedi¬

which is

which

matched

about

legal
exports

of secondary importance.

are

the

inauspi¬

the

Soviet

to

these

cluding goods made

five

about

all

factors,

meat,

them.

Soviet

Union—mostly furs, benzene and
platinum—and sold her a total of

new

available,

of

section of the

publication points out that: and the Soviet Government offers

The

'

not
consequential.
Exports from the Soviet Union to
the free world in 1957, the latest
year for which complete figures

trades

vey."

the

perspective,

are

view

U. S.
In

Only

capital

of

equipment.

Co., study finds only slight prospects for any

Morgan Guaranty Trust
substantial rise in

surplus

exportable

A Closer Look at Soviet Trade Overtures

1959

Thursday, August 20,

...

general that they buy goods
other countries largely for

the sake of copying and reproduc¬

In this way they save

ing them.

the time it would take their tech¬

nicians

to

develop
and design
complex machines and processes.
"The

interest

Soviets
in

have

shown

purchasing

no

sizable
quantities of consumer goods in
the United States.
Despite occa¬

Sachs & Co., 135

South La Salle St.

Joins E. F. Hutton Staff
(Special to The Financial Chronicle)

SAN FRANCISCO,

Calif.—Rob¬

Frugoli has become affili¬
ated with E. F. Hutton & Co., 160

ert

J.

Montgomery Street.

T. A. Paretta Opens
N. Y. — Thomas
conducting a securi¬

FLUSHING,
A. Paretta is

ties business from offices at 163-02

Northern Boulevard.

Volume

190

Number 5874

.

.

The

.

Commercial and Financial Chronicle

(747)

Continued from first page

in Russia. .What the Russians choose to do in the decades

Genera!

and centuries to

As

by traveling about the country for a short period of time.
And the President's name is
apparently well known to
many in Russia and he is said to enjoy very great prestige
in that land.

distance. But however all this may be we can

good

hope that
having the people of each
and hear important leaders from the

and will

can

country get to

from

come

see

other.

basic

facts

his

followers

is

anything

are,

day-by-day getting

and

more

same

consciously

the

or

communist

"free

countries"

not, taken

doubtless like to

of

the

world

Bank looks for high rate of
recovery

a

something that might well have been termed socialism by
most students of the
subject at the turn of the past cen¬
tury. President Eisenhower could, if he chose, predict
that the grandchildren of the
present-day Russians will
be living under capitalism—or
something that Karl Marx
hardly
capitalism.

fied version of hated
Wide
suffer

difference

historical

conditions

as

among

erosion,

people

more

than

a

modi¬

particularly

likely to
present world

rather

in

of

greatly increased contacts and intercom¬
Certainly changes have come fast under
the
leadership of the pragmatic Mr. Khrushchev. Very
little is now heard about the ideal communistic
society
where everyone produces
according ^to his ability and
each receives the product in
proportion to his needs. In
:point of fact Mr. Khrushchev himself has warned that
;any such state of affairs is a long, long way off—and it
-may be that he doubts if it will ever come. Meanwhile,
;

the

in

scenes

imitation of the

Russia, but there is

every reason to believe
other leaves have been taken from the
notebook of capitalism—and a good many of the dreams
of Marx and Lenin have faded from the scene, whatever
may the professions and the protestations of the Kremlin

that

,

in

capitalist system — is the
main dependence of the powers that be.-iOf course, in¬
formation is far from plentiful about what"
goes on behind
—

a

good

many

Socialistic Drift

,

we

•

ic,

even

of Alfred Marshall—

nothing of the doctrines which motivated and gov¬
erned the founding fathers.
And these deviations have
uniformly been in the direction of paternalism, control
direction
have

of

the

retained

economic

our

activities

constitution, of

of

are

freedom

course,

people.
though it

than is anywhere found in Russia at
But compared with the state of affairs
which existed say a half century ago in this country we
: are
tempted to say that we have already;: moved a long
step in the direction of basic socialism at least in our
thinking and in very substantial degree* in our actual
behavior.
And although we have twice placed in the
; White House a President who disavows "Sleeping social¬
ism" the fact is that he has regularly supported and even
initiated measures which are just about as New Dealish
in their nature as those sponsored by the New Deal itself.

The report asserts that it is not

the

power.

tries offers the most advantages to
a U. S. manufacturer.
"The usual

ownership

based

-—

exchange rates
estimate

the

street. Mr. Rust was formerly
with Marache Dofflemyre & Co.

national

gross

which

fleet
of

have

the

the

volved.
mon

these

billion

^currencies

market

a

—.

almost

of

roughly

45%

of

Manhattan

Chase

860

business

West

181st

engaging in a

from

offices

City.
countries

export

and

have

Italy

Forms Gibraltar Sees.

the

hourly wage rates, almost

Sylvia R. Madoff is engaging IS
securities

a

from offices

business

under the firm

"While

of

it

is

possible

to

rank

the

.

o*

con-

rorms

eludes, "it is not possible to rank

Monahans,

report

tr^has
to

t.

f*

otephens Co.
Tex.

Roy

—

be

—

an

—

site

attractive

South Eric under the firm name of

for

R. E. Stephens Co.

i

Earnings per Common Share for the second quarter of 1959 were
up 7 cents from the corresponding figure a year ago.

44 cents,

Earnings per Common Share for the twelve months ended June 30,
1959 were $2.08, or 20 cents less than a year earlier. However, this

RESULTS

represents some improvement
months ended March 31, 1959.

OF

and

however, convinced if presently

we are

either in Russia
lyjow. We are,
living under some¬

thing close to socialism or the Russians are operating a
capitalist country or something closely approaching it,
the change will come in the manner indicated rather than

such
expect. For
reduction
and

the Communists, so-called, profess to
part, we most earnestly bope that any

way as

in

our

the

differences

still

economic structures of

that of Russia will be effected




United States and

by changes in Russia, not
society still blessed with free¬
liberty far exceeding that now found

further socialization of
dom and individual

existing' between the
the

our

of Columbus
the

unincorporated areas of Franklin County estimated by

THE COLUMBUS AND
215 North

SOUTHERN OHIO ELECTRIC CO.

Front Street

Columbus, Ohio

•

For the three months
ended June 30

For the twelve months

ended June 30

1958

1959

1959

1958

(000 omitted)

Operating Revenues
Operating Expenses
Fuel

$12,080

$10,852

$48,534

$45,246

$ 1,569

$ 6,534

2,915

$ 1,471
2,726

876

995

1,660
1,235

1,513
1,049

$ 6,736
10,430
3,194
5,517
3,882
3,603
1,781

649

622

11,257
3,320
6,282
4,753
3,488
2,333

$ 9,578

$ 8,654

$37,967

$35,143

$ 2,502

$ 2,198

$10,567

$10,103

178

65

427

291

$ 2,680

$ 2,263

$10,994

$10,394

$ 1,037

$ 1,043

$ 4,158

$ 3,870

Other operation
Maintenance

Depreciation and amortization
..

taxes
Federal income taxes

operating expenses

Operating income
Other

278

674

income

income
Gross

income

Income Deductions
Interest on first mortgage bonds
Other interest

expense

"

Interest charged to
Total
Net

in any

Ohio granted

Company at $3,400,000 per year on the basis of sales for the year
1957. The City of Columbus has filed an application for rehearing.

action

Just how much further all this will go
in this country we do not profess to

from $2.01 reported for the twelve

On July 31,1959 The Public Utilities Commission of
the Company rate increases applicable to the City

OPERATIONS

Deferred

Preferred

income

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

income

Dividends

(in

interim statement. The

l™r;TaS^tements

$ 3,148

935

$ 4,145

$ 1,328
335

$ 6,849
1,336

$ 7,246
1,210

5,513

$ 6.036

2,651
$2.08

2,651
$2.28

$

1,180

$

993

2,651
$0.37

$

Company's fiscal year ends December 31, at whicljtime
ex£mined by independent public accountants. *

are

445

1,167*

332

1,168

2,651
$0.44

thousands)
PER COMMON SHARE
an

541*

$ 1,512

$

$

end of period

EARNINGS

is
is

528

......... •

Shares outstanding at

This

•

202*

12*

construction (credit*)

deductions

94

143

.....*..

Earnings on common shares
Common

E.

me®ni"g5JiJ^ in an Stephens is engaging in a securibeen* and will'continue ties business fr0™ °ffices at

certain types of U. S. investment."

suggests that U. S. companies in-

Federal

City,

of Gibraltar

Securities,

countries in rtiany impor-

respects,"

name

them .Yery

S.

survey

State and local taxes

at

Street, New York

Belgium and Germany.

tant

output of goods and services."
The

securites

at 149 Broadway, New York

£he six

$200
U.

capita

per

15% below France and 20% below

in-

together

J. B. Flynn Opens
James B. Flynn is

40% of their total production,

lowest

terms, the Com-

countries

purchasing

in

automobiles, GerTV and Benelux in

Holland

product
figures
adjusted to repurchasing power

national
In

over

been

real

Market

offer

of
European
meaningful
are

third of

a

WnhKarri

roiif

business from °ffices at 285 State

of

Benelux

The

size

More

markets.

in
telephones.

many

official

on

leads

France

greatly under-

—

over

Common Market's

to determine which of the
European Common Market couneasy

ATmnc

ALTOSducting 7se^uritTes

g

1958, accounts for

present time.

social

T

and taxes.

ONthWECTERN ETOf ^ StUdy P°intS ^ ^
,rRL^Nr^^TEM?nwt^
Germany, with a gross national
hTmnnthW survey.
product of some $72.4 billion in
Bank
bimonthly

Total

or

_

H. S. Rust Opens

ships and general level of wages

s

plant
St., Belle-

offices and

ville, N. J.

npp

comparisons

company's

located at 331 Main

of each Common Market country,
its growth rate, trading relation-

...

business with firms

does

aircraft, nuclear, electron¬
missile and other industries.

The

vesting in Europe look at the size

the

'has undergone very considerable alterations by the courts,
and still leave the individuals much more liberty and
the

be attractive for certain

It

the

L

to say

We

tions.

types of U. S. investment.

have been drifting further and further away from

the ideas of Adam Smith and

and

mar¬

in

Certain it is that since the advent of Franklin Roose-

velt

$200 billion

a

^

figures.

,

components, and operating a plant
specialized
electroplating,
coating, metal treatment and re¬
lated industrial finishing opera¬

for

possibly outdistancing the U. S.

ket, representing 45% of U. S. output of goods and services. Con¬

in Western Europe
at
a rate possibly above that in
prospect for the U. S." This conclusion

*

was

subsidiaries and pro¬
ceedings are pending for the mer¬
into
Magnaplate
of
three
operating subsidiaries. The com¬
pany is principally engaged in the
business
of
conducting a Non¬
destructive Testing laboratory for
testing
materials,
products and

"REPORT

is

munications.

'incentive

does

company

ly-owned

cludes each E.E.C. country will continue to

covery

capital

working

for

corporate purposes.

organized in
Jersey on May 26, 1959. It
business through four whol¬

New

Reports the size of European markets is usually underestimated; and

"Recent trends point to a continued and rapid .^econqmiq,, re-

Ferman

ger

that actually the Common Market countries offer

—

Lenin would view

along the path of im¬

Mr. Khrushchev would

Europe Envisaged by Ghase Manhattan Bank

have,

may possibly be right in saying that our
grandchildren will live under socialism
or
at least

even

The

Enhanced Economic Recovery in Western

Khrushchev

and

and other

adopt socialism, but most of all, he

see us

L.

Casper Rogers

equipment,

imperialism of the Kremlin is the

wants to dominate the scene here.

good many leaves from the
Yet that, too, is a fact. Thus Mr.

notebook.

commonly termed the free world. At bottom,

perialism through the centuries.

President Eisenhower is not expected to tell the Russian
that

of conflict

the communist nations and those

now

more

like the system which Marx (and Mr. Khrushchev
himself,
too) believe doomed to early extinction. Yet such is a fact.
dictator

are

that which has led Russia

as

& Co., Inc.,
Co., on Aug.
14 publicly offered 75,000 shares
of common stock (par 50 cents) of
General Magnaplate Corp. at $4
per share. This offering has been
completed, all of the said shares
having been sold.
The net proceeds will be used
fpr expansion, purchase of X-ray

tendency

any

much to do with the danger

very

between what
are

supposed, however, that

Robert

and

alike in economic and related activities has

the drive behind the

however, very likely to be
overlooked or forgotten in all this hub-bub about these
exchanges of VIP visits. Mr. Khrushchev is not likely to
tell the President that the
regime that has been set up
in his country to
give effect to the ideas of Karl Marx
and

Let it not be
to grow more

which

V'
Basic Facts

Certain

their ideas upon

or

Just how much difference it makes what the

Russia, it is difficult to tell at this

Magnaplate
Offering Completed

come—barring efforts to force their sys¬
us—is, of course, their own affair.
It is, however, our
suspicion that if they are to continue
what seems to be very real
progress in the economic field
they will find it necessary to move nearer and nearer to
the ways of the capitalist system.

tem

We It
See

rank and file think in

23

24

The Commercial and Financial Chronicle

(74£).
sold the loans

Today
It?

-What Can You Do
It may be the price we shall have
to pay for long continuing infla¬

is

supply

termed

"inflation,'

also.

reckoning is prob¬
ably not imminent. It can easily
be put off by further inflating our

Inflation

As

preliminary

a

inflation

how

supply.

The word "money" will be used

statistics
In

Comes

About

to

observing
place, a few
to

takes

in order.

are

place

of

technically

the

more

term, "purchasing media,"
coin and

include currency and

referred to

"recessions."

as

When

chart the trends of industrial

you

1939,
in

money

demand

and

amount

should

we

billion which

$20

subtract

is

about

estimated

to

production, prices, and the infla¬ be idle or hoarded. The amount
tionary part of the money supply that is idle or hoarded is poten¬
since 1939, you see a few com¬ tially inflationary. If it is brought
paratively brief and shallow in¬ into circulation it will increase
terruptions
in
the
long-term the inflationary part of money in
upswing. It is as if the supposedly
old-fashioned business cycle were
feebly reasserting itself in re-

sure

$120

influence

mand

chronic

of

What
Let's

Inflation?

Is

just what

see

inflation.
'

we mean

by

inflation," "cost inflation," "wage
inflation,"
"credit
inflation,"
"currency inflation," and so on.
there

definition

of

cannot

"inflation"

be

a

that

is

simple and also accurate and
ful.

One

eminent

authority

has

use¬

monetary

that

suggested

is

what

merit

they

in

that

suggestion, but, although the word
may not be
curate
term,

scientifically

a

it

has

ac¬

great

one

total.

and de¬
active
use,
is of infla¬

in

In

other

words,
the
supply is about

what

it

would

and

money

all

We're

of

uncomfortably
aware of what happened to prices
while this
inflationary situation
has been developing. Since 1939,
the

price

consumer

Department

of

index

Labor

of

and

in¬

creased from about 60 to 124. That

increase.

107%

a

The

of

cost

than doubled. Or,
what
has happened

more

describe

in another way, more than half of
the purchasing power of the dol¬

lar

has

have

disappeared.

to

spend

Today

dollar

a

20

buy
have bought

ago.

years

neither

be

little

this

of

much

too

kind

of

and it cannot be infla¬
tionary. This assumes, of course,
money,

that

commercial

the

loans

actually for commercial
Effects
We

are

purposes.

Inflation

of

shall

I

list

now—as
briefly as
broader effects. All
pernicious.

possible—its
of them

are

(1) It reduces and can obliterate
value of all savings that are

the

represented by fixed-dollar
claims: savings accounts, life in¬

pensions, bonds,
gages, social security and

mort¬

surance,

ployment

study

trust

shows,

funds.

unem¬

A

recent

for

example, that
buying
power, just of life insurance, be¬
tween
1940 \ and
1958, has been
almost $130 billion.
(2) By making saving less at¬
tractive
and
consumption
more

due to inflation the loss in

attractive

it

economic

processes

production

directs

of

the

nation's

toward

the

consumer

more

goods and services and away from
the

production

capital

of

equip¬

ment.

(3) It expropriates property un¬
and
inequitably
and

equally

redistribution

a

(4) It impairs the obligation of
contracts.

(5) It weakens and can destroy
the government's credit.
(6)

It

increases

certainty
element

of

business

becomes

and

un¬

added

an

business

risk

and

costs.

We
see,
then,
two
striking
something that is un¬
(7) It erodes, and can wipe out,
In
fact, in countries phenomena: a great increase in the
endowments
of
colleges,
the
there
has
been
inflationary part of the money
ruinous
hospitals, libraries, research or¬
inflation, the word stands for a supply, and a great increase also
in the level of prices. There is ganizations, and other institutions.
very great evil. The people know
(8) Through overly full em¬
little
doubt
by experience inflation's
that
the former is
bitter
ployment
it
makes
labor
less
the cause of the

latter.

inflation—ascribed,
Hugh Dalton, the
omist, is "too much

of

I

to

believe,

British

econ¬

chasing

money

too few goods." Another brief
is
simply, "an unwarranted
crease in the
money supply."
These

have

are

the

helpful,

virtue

of

one

in¬

making clear

the fact that inflation is
primarily
a

monetary phenomenon, but they
us enough.

hardly tell

much

goods"
what

Inflation

that

tells

us

Inflation

ing

a

is

from

Defined

fairly short definition

a

great

a

deal

condition

extension

an

more:

pur¬

chasing power, either in the form
•of money or
credit, which is not
secured

ties

by

reserves

sufficient

This

is

tion.

a

of

or

commodi¬

liquidate it.

good

part

every

further

to

definition,

it

cries

out

but
for

definition

Let

and
explana¬
just rephrase it in
(and
less
ac¬

me

somewhat

loser

curate) language.
Inflation

by

additional

offset
can

is

a

condition

money

by gold
liquidate

caused

that

is

not

goods which
that
additional

or

money.

Actually,

the

properly used,
the

process

term

inflation,

may refer to either

by

which

an

un¬

warranted addition is made to the
money supply, or to the condition
that results from that
process. We
can
4

tion

say,

is

for example, that inflataking place when the

government monetizes
debt. The condition
that

occurrence

existence of
excessive

some

of its

resulting from
that
is, the

—

an

unwarranted and
addition to the
money




we

has

can

see

readily
happening. "Debt

been

is

the

more

the

monetization

when

term

is

for

it.

inflationary

transformation

of

equal

in

value

to

the

As

money.

money

moves

there

more

but

is

no

In

more

amount

the

of

the

additional

into

circulation

demand for

goods,

goods to meet it.

earlier

times

(9) It induces uneconomic spec¬
extravagance,
and
the
hoarding of goods.
(10) It leads to price, wage, and

ulation,

other

controls

free

flow

which

and

the

prevent

best

of

use

re¬

inflation

It

(11)
trade

leads

barriers

location

of

international

to

that

world

make

the

resources

al¬
less

of

interests

the

political influence can affect the
Board's decisions, those decisions
will almost always be in the di¬
rection of inflation, because in¬
flation is the easy and momentar¬

pleasant way, politically, to
deal with the nation's money sup¬
ily

Politicians know that a Spar¬

tan-like

restraint upon

of

course

the

growth of the money supply
doesn't get votes.
essential

fourth

The
of

a

sound

is

a

redeemable

and free

condition

money-credit

system
Full

currency.

redeemability of the cur¬

in gold is a requisite of the

rency

Our
monetary
be described
as
being a gold bullion standard
internationally and an irredeem¬
able paper standard domestically.
This means, simply, that foreign
governments and central banks
can
exchange U. S. currency for
gold at the United States Treas¬
ury, but American citizens cannot.
gold

standard.
today

standard

If

(12)

It
can
eat
away
the
nation's
capital through inade¬
quate depreciation of productive
facilities and the overstatement of

could freely
for gold,

ex¬

currency

any

movement toward inflation would

induce

some people to claim gold.
resulting reduction in the
gold reserve would flash a warn¬
ing, and if the inflationary meassure
were
not
abandoned
gold

would

continue

from

flow

to

the

reserve.

People

both

was

be

can

either the

more

gold

commodity itself.

money

If

is

country

a

the

on

gold

standard, and is determined, when
necessary,
to take measures to
remain on the gold standard, in¬
flation can't go very far.

surprising

number

of

with

the

banks

in

exchange

for

newly created demand deposits
(rather than
new
additions
to
savings deposits) the money sup¬
ply is increased. Such borrowing
is

inflationary when it

poses

/that

will

bring

more

goods

Genuine

not

to

inflationary

are

made

by

—

is for pur¬

promptly

means

loans

are

of credits

to

the borrowers'
checking accounts.
They are not inflationary because
they finance the movement of

goods

We

through the various stages
of production and
marketing; that
is, they result in more goods com¬
ing to market. As the goods are

can

lems of

system
of

a

a

without

conditions

some

discription

system. There
essential

to

are

four

it.

They
are:
(1) sound commercial bank¬
ing, (2) sound fiscal policy, (3)
an independent central
bank, and
(4) a fully redeemable currency.
cial
so

I

nature

banking
won't

The

of

has

dwell

essence

sound

been
on

commer¬

described,

sources

and manpower.

those

economists

would

Although
acknowledge

conditions, prices

keep rising, they

believe

the

that

appear

rise

would

to
be

gradual, of small significance, and
controlled.

be

suggested that

Some

have

yearly increase
in the price level of 5% would be
a
small penalty to pay for what
they
call
"full
employment."

Government

believe

that

2

3%

or

sufficient.

be

mum

stages

would

of "creeping

not

lead

to

infla¬

the

opti¬

employment of material

sources

would

re¬

and manpower.

result

ployment,
ciencies,

in

with

Instead, it
overly full em¬
all
its
ineffi¬

bottle¬
diseconomies,
waste, incompetence, and
speculative excesses. Here I shall
necks,

quote

a summary of this effect of
inflation, which appeared in one

of

the

American

Institute's

pub¬

"Economic

maximum

growth to

cannot

be at

be

its

overall

be

balanced, growth; it must be differential
preferably
each
year,
but
not growth in which the less economi¬
nessarily if one year's deficit is cal
producers
are
continually
certain to be offset in due time

another

year's surplus.

by

If deficit

borrowing is to be non-inflation¬

business

resulting delay in the shift

a

of

resources
to
more
rapidly
growing industries. Change, not
creeping inflation, is the price of
economic growth; and experience
suggests that change is inhibited,
and delayed by inflationary pros¬
perity."

There is no support for the hy¬
pothesis of "creeping inflation" in
our
Nation's past experience.
I
quote again from one of our pub¬

lications:

"During that remarkable period
of

economic

growth from 1873 to
when material wealth in¬
by about 140%, prices de¬

1893,

creased
creased

than 40%.

more

Far from

being a period of 'creeping infla¬
tion,' it was the era in which the
United
to

States

prepared

to return

the gold

standard, resumed re¬
demption of its currency in gold
(1879), and maintained the gold
standard against the assaults of
the inflationists.
"We do not

deflation

is

to

mean

imply that

condition

a

necessary

to maximum economic

growth, but
plainly did not prevent very
rapid growth in that period. Prob¬
ably the optimum condition is one

it

in which there is neither inflation

deflation.

nor

"Also

notable

historically,

but

in the opposite way, is our experi¬
with inflation in the 1920's,

ence

when

the

banking system ex¬
the supply of purchasing

panded
media

quirements
That

rapidly than the

more

of

decade

of

One

business

re¬

justified.

followed

by 10
unemployment
regression.

was

massive

moment

more

"creeping inflation."

being replaced by the
nomical.
an

oration in the

about

The deteri¬

purchasing

the dollar though

a

of

the dollar in half

again, in

who

And

can

a gen¬

say

that

such inflation will always "creep,"
as
distrust of the dollar's future
value is

repeatedly confirmed?
halt

inflation

If

we

do

not

can

be

halted, the "creep" is likely

while

it

to change to a run, and the run to
a wild flight from the dollar.

a

The economic stimulation in the

of sound fiscal pol¬

icy is that the budget of the Fed¬
eral

enabled to remain in

are

with

eration.

re¬

lications:

it further.

re¬

ment of the Nation's material

earlier

money-credit

output and

production

power of
rise in prices
only 2 or 3% a year (com¬
pounded) would cut the value of

Sound Money-

unsound

factors of

occurs, busi¬
otherwise fail

.

"creep¬
ing inflation." They believe that
only by continually increasing the
money
supply so
that demand
"presses hard on productive ca¬
pacity" can there be full employ¬

hardly discuss the prob¬ tion"

an

sound

The

although they

of

Credit System

market.

commercial

not

Elements

When

private
individuals and firms place their
securities
or
promissory
notes

otherwise

(men,
capital, and natural resources) for
transfer to the growing industries

econ¬

omists favor what is called

would

or

would

and economic

Undesirable
A

inflation

that

years

Why "Creeping Inflation" Is

direct and

monetized.

government

lease

It is the

hedges against inflation.

Others

business earnings.

by

the

want

would

simply because it is the best of all

would

least curtail

at

or

The

(13) As it progresses it becomes
Now I know that this idea has
socially demoralizing, for it breeds
less
sophisticated.
They
simply
discontent, widespread misery and found wide acceptance by many
ran the
printing presses overtime
well-intentioned and highly
re¬
suffering, evasion of laws, loss of
and
then
sought
by
edict
or
respect for government, corrup¬ spected individuals. But if it were
statute to give the printed
pieces
to become the basis of National
tion, class hatred, and political
of paper a fixed value.
policy the result finally would be
upheaval.
Public
debt
and,
private debt
ruinous.
governments

"When
nesses

can

everyone

change his

could

efficient.

that

incur losses.

their at¬

long-run
entire nation.
If

that under such

sources.

debt

into money is not
accompanied by
the
production
of
additional
marketable goods that are

result¬

of

chasing too few

money

monetization"

new

Here is

again
of
our
definition of inflation—

simplest
too

efficient.

think

we

Debt

they

and

If

promptly in applying
of

and

monetary control, with
tention
always on the

desirable.

definition

and firms to survive.

businesses

freely

where

consequences.
One
very
brief

that enables obsolescent industries

short- and longer-run measures

wealth

of

without regard for ability or need.

business

Signifies

ary, the government must sell its
securities in exchange for the sav¬

ply.

have

already noted the ef¬
fect
of
inflation
on
prices.
To
further the case against inflation,

you

to

use

need

causes

living has

and

coming

and

in

too

nor

the

has

business

of

the amount of
tends to expand
contract
simultaneously.

market;

currency

us

most

"inflation"

under

condi¬

tions.

what 48 cents would

the word

be

credit

virtue. That is its connotation. To

minds

Eco¬

currency

money

double

to

There

of

for

that of the

show

deposits

sound

each
mean.

billion

the

is

exactly

Research

present

economists, instead of ever using
the word "inflation," should say
time

Institute

nearly $60 billion
tionary origin—about one-half of

this word "inflation." Certainly it
is used or misused in many dif¬
ferent ways. You hear of "price

Perhaps

upward pres¬
Studies made by

prices.

on

nomic

the

to

American

the

gctions
soon are
the that
persistent
and overcome
powerful
y

add

and

use

needs

the

There

the total amount of
circulation (currency
deposits) was ap¬
the checking account, or demand, proximately
$35
billion.
Very
little of it was idle or hoarded,
deposits in commercial banks.
Although the greater likelihood and practically none of it was of
is more inflation, we have to take an inflationary nature.
into account those interim minor
Today
the
total
is approxi¬
deflationary movements that are mately $140 billion. From this
in

to

Thursday, August 20, 1959

.

created, ings of the people rather than for
"That is what occurs when de¬
spent, circulated, and finally re¬ newly
created
deposits at the
mand, augmented by inflationary
acquired
by
the
borrower are banks.
additions to the supply of pur¬
The Board of Governors of the
destroyed when he uses them to
chasing media, 'presses hard upon
Federal Reserve System must be
pay his note.
productive capacity.' Then the ex¬
Thus, the principal part of our independent of Congress, the Pres¬
cess of dollars in pursuit of goods
money supply—checking account ident, and of all special interests.
brings windfall profits even to
deposits—can expand and contract The Governors must be able to act
with

How

account

with the volume of goods

But that

accurate

repaid with the

are

proceeds. The checking
deposits that had been

Inflation in the U. S.

money

.

cur*

Continued from first page

tion.

.

more

eco¬

It cannot be induced

by

expansionary monetary policy

What Can We Do About Inflation?

When

individual asks, "What

a

can

I do about inflation?" he may

be

asking

two rather different
He may mean, "What

questions.
I

can

He

do

about

it

as

a

citizen?"

also, "What can I
do to protect myself and family
against it?"
may

mean,

If you, as a citizen, believe that
inflation is an evil, then, of course,
oppose

it in

and

can,

Speak

at

every

that you
opportunity.

way

every

with

out against it, combat it
the written
word, express

your

conviction to those who rep¬

resent you

in government. And in
fighting inflation, you can prop¬
erly have that conviction, because
the

case

against

inflation

is

a

strong one.
But

person has a duty, also, to
protect himself and his family
against inflation. What he can do,
however, is not at all clear and
simple. First, there is the ques¬
tion how to hedge against an in¬
flationary rise in prices in ways
suited to his particular circum¬
a

stances.

Second, there is the pos¬
sibility that at some point the in¬
flation will be halted
with

a

prices.

consequent

Inflation

or

reversed,
in

downturn

hedges

then

Volume

Number oo/t

lyu

would, bring

.

.

1 rm

.

i. urn-mere mm

in

losses instead of pro-

r i nunc tat

According to

1913.

anionic m

The problem is

grave

a

Bank and Insurance Stocks

'German companies continu-

°*

for

one

between. 1913 and 1924 lost

the middle classes—all those who

who

savings,

some

own

'

amount

of

Other
inflation

in
some form or other.
The wealthy
can
readily cushion
themselves
against inflation or deflation. The
property

newly

-—to make both ends meet—as the
cost of

hold

*

living rises.

Until

«•

inflation

in

began

to

take

this

country, and mountalmost continually re-

ing prices

duced the purchasing power of the

dollar, depression has always been
the

industrious
individual pro¬

of the

fear

great

and thrifty.

As

an

invest

even

first

Liquidity

mortgages.

investment

income

was

subordinate

leverage to one's inflation
hedges, but it is a very risky way.

give

It

not

until

of

means

was

amount

program;

would

he

that

fair

a

great

method

you

"catch"
can

to

every

to

use

protect

flation suddenly may be brought
to a halt. What is not always
recognized by economists in their

them,

had

he

The

yourself against inflation is that
either inflation's impact on some
prices may be delayed for a considerable period of time or the in-

and

to

govern-

consider equity investments other

discussions

than in his business and the own-

trends

of

inflationary price
they can be inter -

that

is

Common rupted from time to time by destocks
were
not flationary movements of sufficient
thought of as suitable investments magnitude to obscure the long-run
until
a
person
was
moderately upward
trend.
Then havoc is
well off, for they involved specu- wreaked
upon
those who had
lative risk.
In a depression they -placed themselves in a vulnerable
ership

his
home.
for
example,

of

financial position. This occurred in

could lose much of their value.

inflation

But

of

more

us

for

1937-38

when

prices
declined
abruptly and precipitously; and it

that savings

occurred to a lesser extent at

placed in banks, building and loan
associations, bonds, and mortgages
can
buy less than half of what
they could two decades ago; and

several times since. Sooner or
later, every inflation comes to an
end, but no one can foretell when,

that if the dollar continues to de-

weights his financial arrangements

They realize

grams.
"

long that many people
their financial pro-

so

revised

have
'

been

has

inflation

the United States a dramatic way
with in -the deflationary interlude of

prospect

the

and

rate it has, their

at the

predate

Often,

losses will be cruel indeed.

protect themselves against inflation, they have been advised
to place their funds
in equities,
such as land, buildings, common

to

goods

rights,

mineral

stocks,

or

What can

person

a

do?

If he

deflation

him

cause

can

what he has between

general rise in prices.
The German

experience with a

inflation,

which culminated

wild

'

1913

its

of

value, is an
of what .can,

example

extreme

•

mark fell to one-

in 1923 when the

trillionth

--

-

happen when a nation's currency
gets

of control.
We are far
being in the situation that

out

from

Germany
the

but - what
hapshows dramatically
can wreck on

was,

there

pened

havoc inflation

savings
It also shows that socalled hedges against inflation are

perfect protection.
In
episode, savings ac
counts
and most bonds became
worthless
Insurance kept about

far

from

the

German

6%

endowments

of its value, and

retained

40%

about

of

Prices

Real estate
of its value.
stocks kept

12%.

and trusts about

common

with the general rise in
prices for several years, but, when
the depreciation of the mark was
most rapid, stock prices no longei
pace

.

rr

ot

th<r

"The Economics of
us

about

that

•

,

ad
reached

year

commoaities and foreign
There
had
been
a

•

"black

Thursday"

in

early

as

markets

as

"the

and

1921.

a

safe

hit

prices, real-

ized that not even the
was

badly

public,

by the fall of share
shares

the stock
December,

purchase of

means

of

in¬

vesting their savings." In October,

take
of

place before the production

standard

comfortable

of

The only real protection against
inflation is the same for everyone: a sound and stable currency
It can't eliminate the ups and
downs of the business cycle, but
ft can prevent the extremes of

inflation and deflation,
Before

AIternatives

Thc

lies

future only
know with certhe

m
can

Of

develop-

possible

the

Us

may occur, the first
^ J believe? the most likely> is
marked further inflation probably

mcnts that

brief

interruptions. Severe
perhaps
later

though

aefiati0n

highly
alternative to

rafber than sooner, is also

overafj

grim

A

these

of

e^ber

could

governmental

be

rigid,

control

of

econSmy.

h

had

increased

Another,

and

native would

be

desirable,

alter¬

the development

application

and

of

fiscal

and

monetary policies of a kind that
can
halt
inflation
and
prevent

2,000

number
times.

of

times;

wholesale

Dividends

the index

and

prices,

were




less

Continuing

over

1,500 times; coal, 1,250 times; bar

iron,

945
than

bank

A.

and

San

of

Francisco.
And
In 1930

branches.

overseas

of

Midwest

Stock

of

ties.

America, adopting that title.

secretary and

owes

departure

from

generally.

the

on

accustomed

quarter-date

of

Indeed,

savings

commercial

by the bank of

use

investments.

total

the

of

practice

This, in turn, led to the

tively high-yielding

the

at

accounts

JERSEY

Richards,

compara¬

June

30,

accounts

of

pride in

having 395

dent;

$5,475,496,000,

was

all

It has

its books

on

kinds; and, whereas

ten

some

1958

Bank

facilities

other

and

its

to

ago

years

it took

needs; eto^ It also'does

underwriting.

The

Its

1958

us

only

mean

to

us

war,

menace.

inflation

economic

can

chaos

bring

and de-

before the world. Next
inflation is our greatest

All

Federal

is

Deposit

banking

of

is

"Timeplan"

education;

retail

tells of having

of America (International),

the

Insurance

service

business.

offered

Federal

Reserve

Corporation,
to

its

System,

There

are

Officers

Louis^

securities

a

Charles

are

E.

Andrews, president;
Phillip
B.
Costa, secretary; and O. I. An¬
drews, treasurer.

Form Securities Traders

owns

and

practically

and

customers.

L. Fane & Co.

par¬

Italian bank which operates 66 offices.

an

member

a

various

lending;

report

J.

iana Street to conduct

important volume of municipal

an

annual

subsidiary unit, Bank

bank

of

every

200,000

HOUSTON, Tex.
Traders, Inc., has

Securities

—

been

formed

with offices in the Texas National
Bank Building to

curities
Albert

in

engage

business.

se¬

a

Officers

are

T.

Schrader,
president;
L. Alden,
Jr., executive
president; and Joe S. Maniscalco,
secretary-treasurer.
All
were formerly
officers of Stand¬

Claude

shareholders.

vice

Statement of

Condition—June 30,

RESOURCES—

Cash
U.

and

S.

due

obligations

securities

municipal

in

Loans

$1,686,327,395

Fed.

2,072,718,165

guaranteed
loans

interest &

Accrued

Bank

premises,

Other

realtv

15,000,000

Other

accts.

Savings

on

Liability

'73,619,914

etc.—'——

loan

pos.

losses

108,153,682

Reserve,
Reserve,

142,856,056

——

4,697,535,008

—

time
5,475,495.630
acceptance—.
76 884 295
int. rec. in advance
40,633,907
int., taxes, etc—
and

on

1.413 ?19

135,715,079

accept.—

Corp.

With Bache & Co.

6,212,805

—■—.—

for

Demand

rec.

Service

(Special to The Financial Chronicle)

Deposits—•

1,466,080,961

owned

liab.

Customers'

Reserve

insured

or

Securities

$616,155,032
Reserves

124.009.500

discounts—. 4,621,102,408

and

ard

protit____

719,787,229

Bank

by U. S. Government______.
Other

Undiv.

99,165,772

securities

Reserve

_______-$160,000,000
340,000,000
116,155,032

Capital
Surplus

in-

securities

Agency

&

Other

Stock

banks

guarantees

State

1959

LIABILITIES—

from

Govt,

eluding
Federal

BOSTON, Mass.—Thomas Lamb
Jr.

has

affiliated

become

with

Bache & Co., 21 Congress Street.
He was formerly with W. E. Hiltton & Co. and White, Weld & Co.

1,617,566

resources

...

of

above

the

principal categories

into

assets

Cash
States

obligations

18.6

Real estate __i„>—______
Miscellaneous assets
—-—_

13.1

by U. S. Govt.

At the end of 1958 Bank

showed

folio

80%

was

1.3

gage

1.9

ners

"

within

three years

five years.
The
and two months.

a

Record—Per

Invested

Book Value

Earnings

Assets

$14.94

$2.65

$205

$1.25

1950

16.45

2.27

223

1951

16.97

2.20

263

1952_—

17.46

2.37

278

1953

18.18

2.66

1954

19.21

1955—

20.00

1949_

average

Sylvian

Wardlaw,

High

Low

163/4

1.50

31

22

1.60

29

251/2

1.60

3U/4

281/4

288

1.60

353/8

283/4

2.64

319

1.60

391/2

331/s

2.75

315

1.75

431/4

36

1.75

40%

36

1.80

381/2

31%

1.80

41%

32

2.89

321

1957_

22.54

2.81

341

1958_

23.49

3.01

366

♦Adjusted for

the 1950 2-for-l

.

with

to

en¬

Plowden-

Mohan,

and

Anne E. Butler.

AND

BANK

22%

21.76

1956

Street

GRINDLAY8

Share*

Dividend

-

formed

C.

Thomas

are

/—Price Range—>

Operating

Investment

—

securities business. Part¬

NATIONAL

Statistical

Ten-Year

Y.

been
State

284

at

in

N.

has

Wardlaw, Rosamond A. Plowden-

of America's government bond port¬

maturing

maturity at that time

offices

41.4%

and discounts

Other

8.6

Loans guaranteed

loans

15.1%
securities

Other

ALBANY,
Associates

follows:

United

Form Inv. Associates

$11,159,413,264

$11,159,413,264

-v

break-down

A

•

LIMITED

Almalgamating National Bank of ImBm Ltdi
and Grindlays Bank Ltd.

1

Head Office:

26 BISHOPSGATE,

LONDON, E.GJ

London Branches

:

54 PARLIAMENT
13

STREET, S.W.I
ST. JAMES'S SQUARE, S.W.I
13 St. James's 8q.; Goti

Trustee Depts.:

Ins.

Nairobi;

Ed.,

54

Dept.:

Parliament
In¬
St. A

St.; Travel Dept.; 13 St. James's 8q.;
come

54 Parliament
13 St. James's Sq.

Tax

Depts.:

Bankert to the Government in: ADEN, Pf^

In

1958,

at

split.

year-end,

the

year's

that

times

13.9

about

UGANDA, ZANZIBAR

Bank of America was selling
operating

favorable rate of earnings on

most

the

and

12.8%;

dividend

pay-out

The invested

operating earnings.

of $6.25 par

There

value.

are

the bank

However,
short-term

showed

&

was

the conservative 60%

that savings and

Selling at present at about

is

next

so

heavily

committed in its holdings to

this ratio is reasonable.

Further, the fact

NORTHERN

COMPARISON &

possibility of an increase in the

shares

ANALYSIS

12 N. Y. CITY
BANK STOCKS
Bulletin Available

Laird, Bissell 8 Meeds

expects moderately higher earnings in 1959,

dividend to $2.00 by

New York Stock

American Stock Exchange

Bell

rank

among

bank stock group.

the

better grade

investment issues

Exchange

Members
Members

120 BROADWAY, NEW

YORK 5, N. Y.

Telephone: BArclay

spring.

The

UGANDA,

PROTECTORATE
AND SOUTHERN RHODOtt.

ADEN, SOMALILAND

time deposits are in excess of demand gives less

This department
the

BURMA,

TANGANYIKA, ZANZIBAR,

outstanding 25,600,000 shares of the stock

significance to the ratio.

with

INDIA, PAKISTAN, CEYLON,

of

(giving no effect to a reserve of $6,212,000).

bonds that

PROnCHXUMI

assets figure stood at $366 a

At the year-end, 1958 deposits were about 17.3

of capital funds

1

It

over-the-counter market, the $1.80 dividend returns

about 3.7%.

to

earnings.

* SOMALILAND

Branches In:

at

the year-end book value, i.e.,

share, 7.3% higher than a year earlier.

in the
,

Harriet

formed with offices at 3030

of its gross operating

offers

B.

HOUSTON,
Tex. — Security
Planning Services, Inc. has been

in 269 suc^i issues totaling over $733 million.

year

controlling interest in

The

It

consumer

a

Security Planning Opens

California

1,000

every

67%

in

G.

ated with L.

17% from securities, and 16% from

sources.

customers:

ticipated in that

a

America derived

from loan operations,

facilities

bond

of

Larry

—

engaging

7,000,000 deposit

over

deposit accounts for

N. J.

Silverman, presi¬
Parness, secretary;
Eisenberg, treas¬
were
formerly associ¬

Ada

and

residents, at the end of 1958 this ratio stood at 486,

dealer

treasurer.

Richards, Inc.

CITY,
Inc. is

Isadore

are

1959

urer.

largest savings bank.

trust

and

securities business from offices at
2322 Hudson Boulevard. Officers

banks

$4,697,535,000 in demand deposits, making it the nation's

income

York

assistant

Form Larry

the

principle that the smaller
(financially) man's account was worth going after, and as a
consequence it built up a large volume of savings deposits,
a

In

New

large

Bank of America worked

versus

the

Exchanges,
has
been elected secretary of the com¬
pany. Charles A. Stuart, formerly
assistant
treasurer,
has
been,
elected treasurer, and J. Harold
Ahlberg has been named assistant,

small unit that in its earlier

district

domestic

members

its great growth to the fact that long before
banking institutions, it recognized the wisdom
serving the smaller individual who was in need of bank facili¬

other

48%. in the

of shares were only
what they had been in

marks)

S.

Trust

the. produce

living,

severe deflation, while encourag89 times
m& public and private thrift and
1914, "while the value of the dol- a
bigh level of confidence in
lar
(expressed in terms of Ger- America s economic future.
man

The

the

is again sufficient for a

goods

prices

1922,

in

it merged with Bank of

...

wiR almost certainly be to his
interest to advocate every measure that will prevent further mflation. An all-out inflation means
loss to practically everyone, for it
brings to a halt the economic
processes of the county. An extremely painful readjustment must

stock prices no longer parallelled probable.
of

operated

today it maintains 647

'
Regardless of what one does, it

its

point, which was in the
Autumn of 1923, the movement of
that

&

,w-

.

0

w^th d"rl 6

tainty.

tpik
tells

highest

r

price with further
inflation and conservative fixedtheir
may rise in

Providence

g

is.

l

inflation
Inflation,

inflation

the

before

a

r.?

•

•

.

equities that

value assets that will retain

What

rp-nnndpH

J,
Bresciani-Turroni

T.

National

& Savings Association was
organized in 1904 as Bank of Italy with resources of no more than
$285,000. Today they total over $11 billion, making the largest

serious

of and hope not to lose too severely,
course
is that equity investments- The wise policy, if an individual's
will increase in value along with circumstances permit, is to divide
a

Appoints Officers
Frank H.
CHICAGO, 111.
Link, formerly assistant secretary
of A. G. Becker & Co., Incorpor¬
ated, 120 South La Salle Street,

to hold his own against inflation,

loss. If he protects his assets
against deflation, inflation can
destroy their value. The best a
person can do, it seems, is straddle
the fence—be ready for either,

The assumption,

commodities.

America

bank in the United States out of the

principal were the priconsiderations in a prudent

individual's

(our

AMERICA IV.

of

years

safety of
mary

gold

OF

Bank

k*ds P°ssepiori-of gold coins), or
e. mi§bt buy diamonds (the re?a-e value 9* which is always far
Dedow retail prices). Borrowing
m0I\ey a^d using it to acquire
§°°ds and equities is a way to

conservative

in

mined

BANK

a. g. Becker Co.

WALLACE

B.

ways

ment permits this, although it for-

gressed he might acquire govern¬
ment and other high grade bonds,
or

BY ARTHUR

^5% of their.investment,

a

of hedging against
are sometimes suggested,
A person might purchase quantitles of goods that eventually
very poor have no savings to pro- can
be used and may later be
tect.
Their problem is to subsist more expensive, or he might buy

moderate

(749)

esti-

one

mate, those who had held shares

tection.

have

una

Teletype

7-3500

NY 1-1248-49

Specialists in Bank

Stocks

26

The Commercial and Financial Chronicle

(750)

■Continued, jrom page

Money

in its way,
in money affairs.

Anti-"Bills Only"

Answers

Argument

«

rested

rule

The

rule of law

a

on

ra¬

many

Speaking

considerations.

tional

entirely for myself and not for my

colleagues, the rule seemed logical
in a free economic system. Upon
examination

an

of

own

my

con¬

science and competence,

I had to
admit that in the infinitely rami¬
fied complex of factors affecting
the

of the long

sectors

numerous

simply did not know
what the long rate ought to be—
a
subject in which many of the
System's critics are apparently
better
prepared.
Then
too,
it
market,

I

seemed to

that if intervention

me

desirable in order to allocate

were

capital as between long
commitments, logic
equally require that the
alloctaion of capital also be ad¬
ministered as between geograph¬
money

short

and

would

ical

areas,
as
between industry
government, as between Fed¬

and

Government

eral

local

and

gov¬

ernment, as between industry in
general and particular industries,
as
between firms and plans
And so on and on, until
there
.

.

.

would emerge a totally controlled
economic society, enforceable

only by

own
mind
actually be¬
free economic society.

whether

lieved in
I

The final

police state.

a

confrontation
was

a

in

or

my

not I

submit

this

partial recall of
my own reasoning only for pur¬
poses of illustration.
The point I
to

want

that

is

here

make

this

attempt of the System to establish
a rule of law in its procedure has
,

been savagely criticized and prob¬

has evoked more criticism
than support, even though the rule
was
intended
to
avoid, among

ably

other
sion

things,
and

the

endless
of the

dismay

confu¬
citizen

when he is confronted with unpre¬
dictable ad hoc decisions. Criticism

has rested

on

many

hypotheses.

At bottom, however,

it has seemed to

has

rested

me

ing the citizen

that criticism

belief

the

on

announced rule of

his

"it might be"

often "it might have been"

or more

that

an

procedure giv¬

basis for judging
decisions (wherein there
be penalties for error and
a

own

will

imprudence) is less desirable than
in

management
citizen

name

of the

(wherein it must be
that

posed

the

the

sup¬

will

management

be responsible and omniscient) so
that the citizen will be conven-

ienced
the

in

case

icans

spite

I

If

in

have

cited, we Amer¬
prepared to give
support to a minor rule,
not

were

cordial

of himself.

public welfare in the nurture of
their own self-interest; and the

sovereign tends to yield to them
out of a laudable munificence and
simple effort to maintain his
sovereign position. The sovereign
must sustain and nourish his serv¬
in

a

must stand up to his
Whether person or state,

he

ants;

enemies.

the

sovereign

standard,

tion,

of

area

or

even

monetary

a

in

the

more
ac¬

where

short-run discipline
interest of long-run wel¬

the

fare

can

be

good deal

a

more se¬

vere.

Yet, as I
fundamental

free

the

a

those

nearly
always necessitous. In nearly all
ages, but notably in our own, he
hesitates to make plain that what
he gives to the one must be taken
the

Thus

other.

the

from

so

money.

gross revenues were up

Ill

nearly

always the most impetuous, larg¬
most continuous, and most
necessitous borower in the realm;
when

and

savings

the

he

fails,

of real

borrowing

attracted to
symbols,

is

final

one

word

about

expectations. It is true, of
that a good monetary sys¬
tem is a profoundly useful adjunct
to
an
economic society.
But I
think that too often we expect too
course,

We would do well, I be¬
lieve, to remember that in a free
economic system there are many
things that greatly influence the

much.

and

level
its

of

stability and efficiency

operation and that do

not

yield
themselves
to
monetary
management, even if it were per¬
fect, which it will never be, or to
a monetary standard, even if per¬
fect, which it will never be.
suffers

time

Our

schizophrenia.

kind

We

having

are

great difficulty in making
minds

whether

up

want

we

of

our

be

to

regulated, controlled, bribed, and

pushed

hill and down dale by

up

the sovereign—all in the name of
welfare

own

our

whether

his

and

wisdom

think that in the

—or

long run the mistakes of the sov¬
ereign will be a greater disaster

the

we

than the mistakes that
set

custom.

free

a

economic

are

ligious

tradition behind-it.

—

enactment

mere

of

A

themselves

yield

to

the

best

legislative
assembly will not suffice.

monetary
managements
or
best of monetary standards.

Discipline of the sovereign can
finally be accomplished only
through his own prudence. The
posture of prudence is, however,

thus

difficult

for the

a

sovereign to

sus¬

tain because of the pressures upon
him
by the people themselves.
The degree of that pressure partly
rests upon the character and in¬

tegrity

their lack

or

—

—

in

nearly always severe; for there
are always large elements in
so¬
ciety that think it better to be
the

clients

and

courtiers

of

liberation

end as
slaves—than
to

honest

be

men

and free.

or

the

of

choosing, by de¬
indirection, the kind

fore

enemies—is the

our

problem of

greatest

Jerry Brunell Opens
KEW

many

countries. What
standard

the

me

venture, however,

comments

speaking of the public pur¬
served by the independence




injury by

sovereign
favor.

for

So

standard

lem of

the

greater

the

monetary

concerned,

the prob¬

as

stated,

of

self-discipline

solved,

upon

or

disciplining the sovereign

—better
in

far

is

claim

a

equal

I

standard

think,

—

assisting
can

by

a

him

Brunell

is

business

conducting
from

a

offices

at

84-51

Bernard Faver In v. Co.
BRONX,
Faver

is

N.

Y.

—

engaging in

Bernard

J.

securities

an

effective

against imprudence.

men

to

ex¬

counterpoise

is estimated that gross
will be close to $635,000,-

Railroad's Strike
Insurance

Program

should

approximate $2.75
against $2.51 reported last

Corp.

and

First

&

Re¬

Investors

like

date.

1958

this

tures

increase

year
to

the

from
1958.

in

A.

C.

Wood, Jr., part¬
Wood, Jr. & Co.,

passed
away
sud¬
denly August 10th at the age of 79.

around

to

$55,000,000

depreciation
$36,700,000

formed

Partners

-are

with

Ira

Sands

Washner. Both
First

offices

are

and

49

Jer¬

officers of

Republic Corp.

a

the

policy,"

Association of

American
Railroads said
on

Aug.

The

17.
plan,
would

which

insure carriers

speci¬

against

financial

fied

losses

results

ing from work
stoppages, will
Daniel

P.

Loomis

into

go

effect

"very
short¬
ly," the announcement disclosed.

Commenting

the

on

industry's

adoption of the insurance, Daniel
P.

Loomis, A.A.R. president said:
"The

railroads

it

felt

not

was

only in their interests but also in

than financed.

losses

first

the

During

half

Santa Fe showed

year,

last

of

smaller

a

drop in revenues than the major¬
of carriers

but still was able
gain in carloading this
year of close to 15% during the
period as compared with an in¬
dustry gain of 11.7%. The less
than average decline last year was
due to heavy shipments of grain,
ity

to

show

a

resultant

the

this

from

having

cellaneous

decline

earlier

than
in

two-

the

the shipment

rev¬

of mis¬

products.
and

Revenues

to

$23,400,000
the

more

the

from

served

of

in

return

offset

thirds of
enues

increase

revenue

source

the

over

the

expected

are

to

insurance

complete

from

this

the

was

year,

almost 3,000,000 train miles

were

eliminated

the

out-of-

pocket

to

in

loss

are

possible during
1959
since the
will have the advantage of

year

reductions

full

in

service

for

the

year.

the
a

Act

this

In

both

"other

1956

and

income"

railroads
strikes

have

had

their

by

Texas
net

and

oil

of

California

after

cut

of

taxes

in
the

separately
operated
companies
by 13% to $9,093,000. This was
responsible for the drop to $8,000,000

from

dends

received

$9,700,000

;from

owned

subsidiaries.

change

is

looked

for

This

Railroad

Unemployment

Insurance Law. under which rail¬
employees engaged in
strike

be

to

are

which the railroad

a

fund to

The

the only industry
such is the case."

roads

'law¬

unem¬

companies

contributors.

sole

a

paid

ployment benefits from

are

Form

First

are

rail¬

where

Pennington

PITTSBURGH,

Pa.

in

with

offices

the

in

divi¬

whollymuch

from

this

First

Investment

Building to engage in
business.

Jezzi,

Officers

president

Schuchert,
Jezzi

was

cashier

and

securities

a

are

Naomi

R.

Joseph' S.

Jr.,
secretary.
Miss
formerly secretary and

for

the

First

Washington

Corp.

Investors Growth Mutual
Investors

Growth

business from

Mutual

offices

a

Cor¬

securities

at

154

Nas¬

Street, New York City. Offi¬

sau

are

Seymour Levy, president;

Theodore B. Verdon, David Shap¬
iro

and

dents;

Henry
and

Investors

Chin, vice

Bernard

secretary. All

are

Growth

presi¬

Bernstein,

associated with

Corporation.

Richard A. Robertson
Richard A. Robertson III, part¬
ner

,

Not

—

Pennington Co., has been formed

cers

In 1958, the combination of lower
prices for crude oil and the cur¬

production

finance

to

employees.

ironic state of affairs prevails be¬
cause of a unique provision in the

was

to fixed charges and
dividend requirements.

of

take

On

about equal

preferred

or

Presidential Emergency
the other hand, the

a

Board.

poration is engaging in

decline.

a

Labor

actu¬

ahead of the previous
year and further gains are antici¬
pated.

the

Railway

tions of

Traffic

business

and

public
railroad
financial
col¬
in

guards

place in defiance of recommenda¬

•

ally

it

existing

undertaken.

were

con¬

lapse and, therefore, is protection
for the public and the nation.
"In the past, a railroad has had
no
protection against work stop¬
pages
that violate provisions of

the

359

inevitable

is

against

large factor. Last year, 385 new
permanent industries located in
and

plan

as

road

for

financial

huge

an

interest

products

territory

are

of work stoppages. The

sequence

ful'

programs

from

that

Federal

a

public interest to seek

protection

will continue to play a large part
in
the road's future, but indus¬
trialization of the district will be

railroad's

broad

the

territory
continue

Agricultural

grow.

both

at

ap¬

by some $31,000,000, with most of its equipment
being purchased for cash rather

combined

First Republic Underwriters has

plied

equipment

trust maturities

the

indus¬

has
for

try

$35,000,000 expended in

tailment

Form First Republic

"practically

expendi¬

expected

are

Estimated

1957

C.

Philadelphia,

the

Capital

pro¬

insur¬

entire

ities
were
$103,600,000. Working
capital aggregated $142,100,000 as
compared with $99,900,000 on the

Non-rail income has been show¬

Alexander

and

amounting to 30 cents quarterly
plus a year-end extra of 25 cents
a share which might be augment¬
ed. As of May 31, 1959, cash and
cash
equivalents
amounted
to
$176,000,000, while current liabil¬

ing

Alexander C. Wood, Jr.

plan

ance

the

interruption

ceptionally strong, with dividends

1957. Further cuts in this

Securities

accepted"

service

are ex¬

2442

formerly

posed

year.

Finances of the Santa Fe

firm

was

American railroads have "over¬

whelmingly

share

a

at

Faver

To Become Effective

reported in

the

Corp.

ome

full

under

West 32nd Street, New York City
to engage in a securities business.

permitting prudent

the

offices

tioned but also

ercise

For

from

been

of

its holding in oil, lumber,
coal, real estate and other sub¬
sidiary companies.

compared with $595,298,000
1958 and net income

as

longer
benefit

should

com¬

Avenue

a

only be

characteristic

it

year,

revenues

000

months.

1953

as

share in the

a

deficit
was
reduced
$2,400,000
from
$10,300,000

business

ner

share

common

a

Further cuts in passenger busi¬
ness
losses are anticipated. Last

acteristics I have previously men¬
the

like

plants

Jerry
securities

Beverly Road.

monetary

having not only the char¬

cents

pared with 53 cents

—

own

suc¬

83

the

over

Fe

pattern.

1959,
16.1% over
period, while ex¬
only 9.5%.
On the

rose

volume

GARDENS, N. Y.

rule of law. I believe

ultimately

Santa

term

1958

expansion

will

the

like

the

time.

our

National

is

traffic

its

of

hand, Federal tax accruals
during the period increased 82%.
However, net income increased to

We

confronted

society we want. Therein lies
a problem of value judgment that
—excepting only our posture be¬

sovereign—even

nally

ourselves

of

of

the

though they fi¬
his servants and

find

with the task

the

governed.
But
the
the
sovereign
is

on

because

charges are placed at
surely be¬
which
will
exceed
system.
If.

hardly going to find a we choose the former, then there
monetary standard having more is not too much point in extended
than emphemeral and transitory debate on the monetary system.
The system should be simply de¬
significance unless we face up to
the fact
that
it
is precisely in vised for the maximum conven¬
the difficulty of disciplining the ience of the sovereign in gather¬
sovereign himself that we find ing to himself the resources of
economic society.
If it is the lat¬
now, as the world has found in
ter, then the debate on money is
the past, the central problem of
a monetary standard.
If such lan¬ profoundly important.
But
I
guage be deemed inept, let it be
believe
we
should
be
more
A
gently phrased. Let it be under no illusion.
free eco¬
said that we must provide in the nomic society, whatever
may be
monetary standard a shield be¬ its tremendous advantages in the
hind which the sovereign may at economic
sphere, and its utter ne¬
times honorably retire.
This is cessity for political and personal
why a monetary standard of any freedom, is going to produce from
long-run validity must have a time to time some exceedingly
deep and abiding — almost re¬ uncomfortable results that do not
We

sharp decline in

a

1958

.although

source,

from

other

conclusion,

the creation of monetary

as

in

diversified

penses

Conclusion
In

whether

by clipping the coinage,
in days gone by, or by using

suffer

In the first five months of

the

with

large

Disciplining the Sovereign
pose

well

not

earnings

—

search

monetary

Let

demanding money—by demanding
value
not merely a symbol of

group gains the sovereign's favor,
and they thus seek to
repair their

at

must find, if it is to
free, is obviously beyond
analytical or intuitive pre¬

few

In

is

he

So

est,

world

science.
a

is

sovereign

of the few roads which

one

did

of Bernard J. Faver Invest¬

remain
my

.

Earnings of Atchison, Topeka &
Fe continue at high levels.

Santa

This is

ing the sovereign, for the individ¬
ual
to
protect
his savings
by

Co. Mr.

own

time and in

by the regimes of
fiat money that have created such
ultimate

by all of society, includ¬

ognized

name

our own

implied

havoc in

satisfactory. There must be a
personal right, rec¬

fundamental

ment

the

ceed only if it is recognized that
we must have a
monetary stand¬
ard fundamentally different from

free

commodity

purchasable

a

Atchison, Topeka & Santa Fe

rational, will ultimately

fering preference but find them¬
selves
justly
aggrieved as one

the

search

be

This is why, in

Throop

indicated,

world

search for

opinion, no tabular standard,

They tend to be joined
by others who would have a dif¬

have

problem in
affairs of our

monetary
country and
the

alw ays

seems

tempted to believe that loyalty is

pressure

basic criteria for central bank

■

is always beset by a
clients, courtiers, pan¬
handlers, and enemies. His clients
and courtiers always
allege the

be sufficient.

my

however

of

population

in

precisely in the dif¬

not

sovereign

swarm

be to accept a rule in the far

important

against monetary imprudence will

ficulty of making the sovereign
itself amenable to discipline.
It must be remembered that the

how much less prepared would we
more

pleas of prudent individuals

mere

banks, I said that the
central bank, being the creature
of the sovereign, could not in the
end discipline its creator. Yet the
main problem facing the modern
world in its search for a monetary
standard lies

a

access

central

of

the engaver's bench, as is now

do.
I

Thursday, August 20, 1959

.

Railroad Securities

standard

can be had, if
all, only if the individual has
to
ultimate
money.
The

at

The Sovereign, the Central Bank
And the Monetary Standard
was,

.

Requires Access to Ultimate

7

Such

It

.

in Robertson & Co., New York

City, passed

away

suddenly Aug¬

ust 12th at the age of 59.

Number 5874

yolume 190

.

(751)

The Commercial and Financial Chronicle

.

.

'

franchised

Union Bag-Gamp Paper

the

Mutual Funds

Secondary Offering

ROBERT

BY

An

Details

the

of

plan

Diversified Planners
be^,n
0vlfrif
West 42nd Street, New York Ci y,
to engage in a securities business.
Partners aFf Francis Waschler

dis-

were

closed by Walter Benedick, President of I. P. C., and Milton Fox-

E. RICH

tributor of National Investors Cor¬

&

Sons

There

is

established

trust

a

in 1951 by Louis Calder

purposes.

Paper is the
largest United States producer of
Bag-Camp

two

fully-integrated pulp and pa¬

per

mills

at

Savannah,

Ga. and Franklin, Va.,

having ag¬

situated

Falls,

ended June 30,

net

and

000

of

and

With

who

are

the

six

months

92 cents

or

share, in the first half of 1958.
1958, sales were

For the full year

$156,908,000 and net income $15,654,000, or $2.13 per share. —4\
been

Dividends have

paicL,con¬

with the
regular quarterly rate 30 cents in
1957 and 1958, supplemented by
extra dividends in like amount in
1940

since

of

prepared to sell their customers a complete package—
mutual fund and life insurance.
- - •
^

equip¬

industry, which diversified in the desperation created by the
buying of their carrier customers. The funds are
and

growing at

that is unequaled in any area

pace

a

members

tico

of

off San

less than a half
less than 300,000 accounts. So this

there

dollars and

were

'

IltCOrpOrilt cd

I

Income Fund

The

National Association

vestment

Companies
there

of In-

reports

that

1,006,720
active accumulation plans for the
June

at

Branson Instruments
Common Stock Offered

of mutual fund shares.
with
750,000
a
earlier. The association also

announced

offering of 40,000 shares
of Branson Instruments, Inc. com¬
stock
was

at

McDonnell

on

Co.,

&

of $20 per
20 by
Inc.
Of the

price

a

made

compares

year

Public

share

were

purchase
This

mon

30

Aug.

a

mem-

by Charles M. White,
Republic Steel Corp.,
Herbert R. Anderson, Presi-

and

and 30,000 shares for
certain stockholders.
^

first

proceeds from the saley of
its 10,000 shares of stock will be
used by the company to finance
additional inventory. The balance

hold

be addressed

dent

Net

will

President of

40,000 shares offered, 10,000 sBtores
are being sold for the account of
the company

it

bership meeting in New York on
22 and 23. Sessions will

October

of

the

Delaware
seven

association.
Fund

sales

for

the

months of 1959 totaled

$10,419,039, a rise of 106% from
the $5,059,673 in the same period
last
year
July
sales were up

A mutual fund investing

Juan,

list

in

of securities for current

income.

was

J

the

In

of

score

two

the

total

the

A prospectus on

Team

Rican

William

your

blue marlin.

or one

G.

200 Berkeley

partner of Ira Haupt & Co., mem¬
bers

of

the New York

Stock Ex¬

438V4 lb. blue
marlin on Aug. 14, representing
the Puerto Rican team, and Esteban
A.
Bird,
Executive Vice-

change,

caught

Boston, Mass.

Credito

y

scuiTiig
scoring

■

Team
learn

for
lor

I

I

I
|

Hatteras
naxxeras

I

J

j

Cape
c.ape

I

,

on

lb. blue marlin

154

I

Juan, |

San

Ponceno,

I

a

Aug. 15. Mr. Carrington was presented with a rod and reel by the

a

Street

a

Banco

of

President

investment dealer.

The Parker Corporation

Jr.,

Carrington,

each

fund is available from

lins; the Cape Hatteras Team, 336

Ahorro

Reports

contests,
Puerto

2307 points or nine blue mar¬

points

|

a

last June.

caught

$37,553,233 of long-term debf^and
7,379,388 shares of $6% par value
common stock.
/

I

eight were
caught off Cape Hatteras in com¬
petition between
the two teams

peting with this new young giant.

Mutual Fund

in

Juan,

caught off San

Overcoming personnel problems figures to be a minor chore
the jousting with bureaucrats and certain insurance
company officials, who are not taking kindly to the idea of com¬

1959 capitaliza¬
tion of the company consisted of:

possible long-term growth of
capital and income.

designated the Blue Marlin Capi¬
tal of the World for 1959 since
while ^ two
blue
marlins
were

resulted

alongside

of June 30,

a

for

j

each year.
As

in

j

of

case

no

Puerto

selected

Rico,

people envying someone else's greener grass, but
rather seeking more green. Indeed, it would appear that only the
green light from state insurance departments and the availability
of personnel (it's a rare fellow who is thoroughly grounded in
both mutual funds and insurance) are needed to send the mutual
funds off to a large niche in the insurance field.
is

Nau-

of securities

Juan, August 13-15,
Cape Hatteras being

Prior to World War II their assets toted up to
billion

San

list

between
Hatteras

I

1925

A mutual fund investing

Club

Club and

held

j

Investors

r

International

Tournament
of
the Cape

Fish

Bill &

commerce.

our

FREE ON REQUEST

Tourney

Marlin

Blue

The

a

well-heeled

EITHER PROSPECTUS

By P. R. Team

Fishing

mighty Metropolitan.
without ideas of their
assets of $15 billion and well over four million

Now, the mutual fund field is nothing like the railroad
ment

,

ESTABLISHCD

Won

accounts, this fast-growing field already has numerous salesmen
shares in

H. Paiser and

J Incorporated

Blue Marlin

the managers of mutual funds
net

Leon

..

death.

no capital investment, they broad¬
they were filling the pipeline to the

as

are
.

^

Eli Druskoff.

\
The plan will call for a maximum of 150 monthly payments of
from
$20 to $2,000 and higher,
with optional group life insur¬
ance
up to $30,000 covering un¬
completed payments in case of

will be plenty, even without

own.

Cor-

Electronics

&

•'

poration.

politan Life Insurance Co.'s Fred Ecker has made clear.
But,
assuming legislative approval of the variable annuity idea for
insurance companies, the competition for the investment dollar

1959 were $88,315,income $9,580,000,

$6,743,000,

tinuously

Partners

Science

Axe

pretty much the same kind of reasoning that has driven
companies to the idea of variable annuities. They have
the resources; the demand is there. To be sure,
not all insurance companies want that kind of diversity, as Metro¬

equal to $1.30 per share, compared
with sales of $73,722,000 and net
income

Inc., and the other for shares of

the clientele and

are

,

„

So, with

Even

Open

Druskoff has been

plans, one for the accumulation of
shares of Axe-Houghton Fund B,

insurance

Nor

Paisner and

formed with offices at 1635 Popham Avenue, New York City to
engage
in a securities business

hand-to-mouth

for

sales

Net

Y.

N.

line.

C.

plan will follow the same format
as
the other I. P. C.-sponsored

It is

at Trenton,
N. J.; Chicago;
Louis; New Hope, Pa.; Rich¬

mond, Glens
Lakeland, la.

but

trade, the profits flowed.

or
leases
about
of timber land in
five southeastern states, of which
75% is owned in fee. Other plantsowns

their

ened

which also manufactures and sells

acres

industries,

or a

units under contract.

products include container-board,
corrugated boxes and sheets,
bleached paper and board, and
various types of
converter and
wrapping paper.
The company,

1,425,000

growth

appliance manufacturers jumped in. Their reasoning was ele¬
mentary: they had the dealers who sold their standby appliances
and there was no lack of manufacturers eager to produce the

gregate annual capacity of 925,000
tons of paper and board.
Other

lumber,

broad-horizon

of

The company operates

paper bags.

new

highly cyclical business, would look for more of the
same in their quest for diversity.
The rush to greener pastures can take on the aspects of a
stampede if the cost of getting into the new field does not involve
onerous financing.
Thus, in the case of air-conditioning, dozens

margins

exclusive¬

ly fgr religious, charitable, scien¬
tific,
literary
and
educational
Union

many
as

solar

or

Paisner and Druskoff
I.

said the N.

Benedick

Mr.

different as air-conditioning, electronics, nucle¬
power are from each other, they all have this in
common—they will not long have the field to themselves. This is
the age of diversification and it's hardly realistic to suppose that
industrial leaders, whether they are afflicted with small profit

onics

proceeds, will be received by the
company.
The
Louis
Calder
Foundation

are

though they be

an(* S. David Hoffman,

poration shares.

It's the Green, Not the Grass

_.

Futures

Martin, President of Broad Street
Sales
Corporation, general
dis-

Lawrence

The stock, which is being sold
by The Louis Calder Foundation,
is priced at $44.75 per share. No

per

•

on

J.

capital stock of Union Bag-Camp
Paper Corp

St.

and

Europe

18 offered 327,042 shares of

Cyrus

are

States,

Asia

underwriting group headed
jointly by Blyth & Co., Inc. and
Aug.

United

\

Futures Diversified

throughout

affiliates

27
\i:.
*

■

'

i

is valued at the highest individual points, 961, .
$55.7
million.
General
Motors for the Puerto Rican team. A
holdings now total 721,000 shares marlin trophy was presented to
at $37 million; Eastman Kodak, the Cape Hatteras team and a I
222,000 shares at $19 million; silver cup to the Puerto R^an j
Santa Fe, 775,000 shares at $23.6 team, along with replicas of the j
million; Texaco, 527,100 shares at cup for team members,
$42.4 million; and National Lead,
Forms E. J. Quinn Co.
128,112 shares at $15.9 million.
Some
entire
industries
that
AND
at
v
F
were prominent in the 1920's subT
-n
•
«
Cr.
T'
'has been
sequently lost their investment
■j ^
.
offices at 544 Oak560,000

shares

and

with ■offices at 54<4 (Dak

appeal and were replaced in the
portfolio by stocks of companies
in
other industries, Dwight
P.
Robinson
Jr.,
Chairman,
ex-

f"®" ?

plained. On the other hand, he
added, important industries now

ana Gerald

Avenue to engage_m tne

^

^

° kfcnt

Mi-

^ ^nresi'dent-

J^;™e sPecrefaryfi

p

'fnyr 1

represented in the portfolio, such
we?d
Co"
as
drugs, chemicals, electronics, 1™^ with White,
82.8% from a year ago.
and J. F. Reilly & Co.
business machines and natural gas,
Massachusetts Investors Trust,
did not start their great expansion
of the proceeds will be added to the
nation's
first
and
largest
With Midland Inv.
until years after the trust's first
the company's general funds and mutual fund
luiiu
wnii
uuiic
with
June ou
30 cisscis
assets
(Special to The Financial Chronicle)
will
be
available for
working of more than $1.5 billion, attained p
Totaj net a^set vaiue of \llicd
COLUMBUS, Ohio — Frank R.
its present stature from a modest
capital.
Lthe f£ral
u
u
^
^
The company is engaged in the beginning just 35 years ago this
4ifi
Kaspeneen has beeTn ad?ed ta the
ended
July
31,
were
$<46,416,
g^.a££
Mlc[ianci
investors
Corndesign, manufacture and sale of summer.
compared to $349,800 a year ago
12g6 West Lane Avenue.
MIT started operations on June
ultrasonic
thickness testers and
an increase of 120%. The net asset
flaw detectors.
Through a sub¬ 23, 1924, with a subscription ac¬ value per share increased 34%
wul r>
u \A7oIL^k
for
investment
of
some
sidiary, the company is engaged count
during the year from $5.28 to
With L*. il« WaiKer
The
trustees
put this $7.09. Total net assets per sharein the design,
manufacture and $29,300.
Joachim A. Schumacher has be¬
sale
of
ultrasonic cleaners and money to work almost immedi¬ holder were up from $1,705 to come associated with G. H. Walker
cleaning systems. Offices and ately, investing in a group of com¬ $2,850.
& Co., 45 Wall Street, New York
manufacturing
facilities
of the mon stocks, and the portfolio
:gcui
to
iu
take
ictivc suctpc.
shape.
Investors Planning Corporation City,
company
and its subsidiary are began
Among
the
initial
purchases of America on Aug. 19 launched Stock
located in Stamford, Conn.
were these common
stock invest- distribution of a new contractualmanagement aepa i
ex.

Weld & Co.

—

J*?*™1Bn£

vea?
*«74fi

emmn,

members of the New York
Exchange,]in the in-vestme

For the five

months ended May

its sub¬
had consolidated net sales

plan
for
the
accumulation of
shares of National Investors Corof poration, America's oldest growth
Atchison,
Topeka
& Santa Fe, stock mutual fund.
$780.55 of Texaco, and $729.13 of
National Investors Corporation,
National Lead Co.
with net assets of $120 million, is

merits:

$971.50

of

U.

S.

Steel,

31, 1959 the company and

$670 of General Motors, $1,077.75

sidiary

of

of

$645,656

$53,465.
were

and

net

income

of

For the year 1958 net sales

$1,268,683

and

net

income

Eastman

Kodak,

„

.

J. J. Kneger to.

$1,041.50

j

j

gaging
,

Krjeger & Co., Inc., is en-

in

a

securities

business

0ffices at 120 Liberty
York

Street,

City.

of the $297 million Broad
Street Group of mutual funds.
rnrm T
I <Wnritie«;
The N. I. C. plan is the third
the current financing outstanding
to be developed and sponsored by
HEMPSTEAD, N. Y. — Long
capitalization of the company will
through the 35-year period, and, Investors
Planning Corporation Island Securities Co., Inc., has
consist of 160,000 shares of com¬
of
course,
today's holdings are for distribution by its 3,000 regis- been formed with offices at o0
mon
stock, $1 par value, Of an quite a bit more substantial. The tered representatives in the New Webb Avenue to engage in a seU.
S.
Steel
commitment
is at York metropolitan area, and its curities business.
authorized 200,000 shares.
was

$106,789.

Upon completion of




Although

these ,six

stocks ap-

one

in the current MIT portfolio
list, only one—Eastman Kodak—
has been held continuously
pear

Company,

lnc^'l

Elizabeth 3, New Jersey

.4**1

Hugh W. Long and

187B

i(

L.

J

The Commercial and

(752)

£8

below; shipments

Continued from page 5

Lost production was estimated at

$225,000,000.

at

S.

U.

the

9,625.400 ingot tons.
sees

bn

in

us

a

Business

in

nationwide steel strike,

fn

.

eight-tenths of a percentage point above the previous week's re¬
rate.
Output was about 340,000 ingot tons.
Sixty-eight
nlants of 59 steel companies were operating. Their combined an¬

22,324,990 tons, about 15% of the industry's

foundries, 135 fewer than were in operation

ities.

and

Iron

Institute

that

announced

the

*105.2%.

was

The

much

as

nine' cents

as

a

bushel

With trading volume gaining in the world market as well as
domestic market, the outlook for sugar is considered good.
remained firm over the past week.
Coffee prices held

in the

Prices
*Index of production is based

on

weekly production

average

steady with last week in moderate trading. Cocoa declined slightly
during the week despite gains made on Friday.

for 1947-49.

1959 Model Car
The first Ford plants to

shut down

Normal

Output Continues Lower
close for the

1960

model

changeover

Aug.

14 at Dearborn, Mich., and Lorain, Ohio, as
dustry production continued at its slowest pace of the year.
Ward

Automotive

Reports

estimated

{period ended Aug. 15) at 72,630
previous low mark, last week.
A
were

cars

the

week's

in¬

assemblies

ago

108,240, the year's
this week 59,677 cars

for

the

latest

week

was

slightly at

up

compared with 11,200 a week ago and 12,976 a year ago.
baker and Dodge have begun 1960 assemblies.
The four millionth car of the calendar
year was built during
the week under review and
production now stands at 4,023,211
cars since Jan. 1.
A year ago this date the

figure

Electric Output 6.2%

was

The amount of electric
energy distributed by the electric light
power industry for the week ended
Saturday-, Aug. 15, was
-estimated at 13,648,000.000
kwh., according to the Edison Electric

Institute.

Output decreased by 27,000,000 kwh. below that of
previous week's total of 13,675,000,000 kwh. but showed a

gain of 798,000,000 kwh.
1958

or

6.2%

above

that

of

the

comparable

week.

Loadings Down 14% From 1958

Loading of
totaled

532,304

nounced.

This

was

Week

last

below

the

of 86,900 cars or 14% below the
1958, and a decrease of 208,167 cars or
corresponding week in 1957.

Loadings in the week of Aug. 8, were
12,160 cars or 2.2%
below the
preceding week. It is estimated that there was a loss
abouu 160,000 cars in the current
week due to the steel strike.

m

Iatercity truck tonnage in
ahead of the

The

earlier.

1958 Week
was

report

reflects

10.3%

common

j,

of 34 metro¬

Department.

tonnage

handled

carriers of general

at

over

400

truck

The

terminals

of

freight throughout the country.

Lumber Shipments Decline 1.9% From 1958
Week

!

T,lmh^TSRhipmen/S °f 473 mills reP°r^ng to the
££££«*^ao?ametTer+rre L9% above P^duction for
wrP
were

m
2
2V hoi
beiow

unfilledenrdprt:

unfilled orders
rent rate
wo

99I

duction

wp

*

?-e san?f
^eek
Unfilled

production.

of

the

°f equivalent
gr°SS ?io?ks'
For
to 19

were

of

This

reporting

days' production

mills

at the

cur-

days' production.

year-to-date, shipments of reporting identical
new orders were 2.5% above

above production;

mills

pro-

Compared with the previous week ended
Aug. 1, 1959 pro¬
of
reporting mills was the same;
shipments were'3 2%
above; new orders were 4.5% below.
Compared with the cor¬
responding week in 1958, production of
reporting mills was 4.2%
duction




Exchange this

were

Food

as

compared

ago.

electrical

of

contracting,
of
highsystems,
other public address

manufacture

and

sale

fidelity and other sound
theatre

and

systems and related products, and
circuit, low-cost commer¬

field

of commercial television the

through a subsidiary can
equip a television station for
$25,000 to .30,000 as compared to
company
now

a
former
minimum
outlay
of
$100,000 to $200,000. This opens a

tremendous
smaller

field

new

will

towns

since many
be able

now

to support a commercial television
station.

Orders for

stallations
ceived.

have

This

of future
For

is

who

Rogers

like

area

dash

a

in'

of

their

offers its

company

entry into the vital

re¬

N

romance

Anti-submarine

in¬

been

explosive

an

earnings.

those

Buck

station

17

already

sonar program.

warfare

is

con¬

sidered by our military leaders as

perhaps the most critical area of
present scrutiny. Ling-Altec en¬
gineers are perfecting a system of
miniaturizing sonar power units
and the company presently has a
backlog of orders of over $2,500,000

for

production

equipment, which
due

are

prototype
expected in

to be followed

course

by

pro¬

in

turn

cn

$5.89.

The current level
a

year

27, 1956, when the
9.8% below the $6.57

was

ago.

Index

represents

the

sum

total

of

the

eggs,

cocoa,

price

per

pound

foodstuffs and meats in general use.
It is not a cost-ofIts chief function is to show the general trend of

food prices at the wholesale level.

Retail

Sales Exceed Last Year's Figures

sales

sales,
over

in

retail
those

some

impact

on

year

volume

of

one

during the past week showed
There

further

of spotty
categories in cities affected by the steel strike but
retail

year

trade

in different

ago.

has

cities

been
from

were

reports

mild

this

far.

down

10%

compared

Automobile

to

last

to up 20%.
The

total

dollar

volume

of

retail

trade

in

the

week

Aug. 12

jbnded

was 4% to 8% higher than a
year ago, according to spot
estimates collected by Dun &
Bradstreet, Inc. Regional estimates
varied from the comparable 1958 levels
by the following percent¬
ages: Mountain +7 to +11; East North Central and West South
Central +6 to +10; Middle Atlantic

+5 to +9; Pacific +4 to +8;
New
England, West North Central and South Atlantic +2 to +6;
East South Central —1 to
+3.

Federal

Reserve

increased 9%. above

sales

on

Board's

the

a

country-wide basis

Index

sales

and

earnings

for

However, this is only the be¬
ginning. The company has at least
three
strong arrows in its bow.
The market for environmental

vi¬

for

the

as

for

mushrooming. The market

low-cost

commercial

awaits

only

TV

sta¬

FCC

approval
of the many additional applica¬
tions pending to virtually explode.
Large production contracts in the
field

sonar

cloud

and

before
divisions
operating

expected

are

is

there

hardly

a

the horizon.

on

The
company's
growth,
par¬
ticularly in the last three years,

has

fantastic

been

ample

reason

period

of

but

there

-

believe

to

is

that

a

growth
lies
immediately
ahead.
It
is
Ling's ambition to have his com¬
pany in the first 500 U. S. cor¬
porations by 1961 and I personally
would not care to bet against him.
greater

even

(Just prior to going to press, it
was

has

announced

that

Ling-Altec
Elec¬

Continental

acquired

tronics for $3,600,000, mostly

This

than

taken from

ended

week

ment is

tions

newest

acquisition

cash.

will

re¬

in

sharply higher sales and
earnings for the balance of 1959

,

the

estimate

sult

Nationwide Department Stores Sales Up
9% for August 8 Week
Department store

impact

earnings.

for the six months to June 30. We

profitably

ready-to-wear, and stimulated by back-to-school promotions and
gains

and

the end of this year. All
of
the
company
are

Paced by continued strong demand for furniture and women's
white

most favorable

a

sales

bration and acoustic testing equip¬

beef, hams, bellies, lard, sugar, coffee, cottonseed oil,
rice and hogs.
raw

1960

respectively.

by Dun & Brad¬
Aug. 11 to $5.93 from $5.99 a week

the lowest level since March

was

will have
on

which

contracts

the second six months of this year
at $16,000,000 and $1.00 per share

Price Index, compiled

corresponding date

National
the week

reP°rting softwood mills,

and gross stocks were
equivalent to 41

ex¬

Commodities quoted higher this week were
flour, rye, butter
and peanuts.
Lower in wholesale price were wheat, corn, oats,

new orders of these mills
orders

Wholesale

sales varied

corresponding week of 1958, the American
Trucking
Associations, Inc. announced. Truck
tonnage was 0.3% below

that of the previous week of
this year.
\
These findings are based on
the weekly
survey
politan areas conducted by the ATA
Research

Cotton

a little below those
prevailing at the close of
United States exports of cotton for the week

Tuesday

index stood at

the

the week ended
Aug. 8

York

approximately 13,000 bales
60,000 bales last week and 64,000 bales a year

decrease

Intercity Truck Tonnage 10.3% Above

New

Wholesale Food Price Index Lowest Since March 1956

-

corresponding week in
28.1%

the

on

living index.

freight for the week ended Aug. 8, 1959,
the Association of American Railroads an¬

a

selling

Prices ended

ended

with

of 31

revenue

cars,

heavy cotton supply, coupled with lagging

a

previous week.

The

Car

i

previous week.

street, Inc., declined 1.0%

and

the

the

2,700,966.

Above 1958 Week

Commercial sales will be in the
field

For the quarter ended June 30,
1959, the company reported earn¬
ings of $0,405 per share on sales
of $6,299,000 and $0.51 per share

Forecasts of

11,861
Stude-

areas

changed.

week.

volume

importance in many in¬
yet to be explored.

great

dustrial

duction

ports, influenced

built.

Truck

of

Hog prices advanced over last
week, turning upward at the close. Lamb receipts this week were"
15% higher than in the previous week and prices remained un¬

at the level of the

against

year

supplies of steer beef moved well during the past
Initial price declines were recovered and the market ended

week.

problems confronting de¬
and
manufacturers
of
missiles,
aircraft
and
components, and are potentially
signers
rockets,'

situations, this

domestic flour market quieted down this week after a
busy two week period and prices declined moderately. Lower
prices were again being quoted" by millers on several grades of
rice.
Early arrivals of new crops were grading high and export
inquiry continued active.

\

critical

nation¬
servicing of them all. It is
worthy of special note that in the

Moderately Over Previous Week

The

ago the operating rate (based on 1947-49 weekly
was *22.7% and production 365,000 tons.
A year ago
weekly production was placed at 1,690,000 tons, or

Vibration
and
two of the most

represent

wide

very

month

field.

panding

cial and amateur TV, and

Commodity Price Index

week, bringing the price down by
since Aug. 1.

Estimated percentage for this week's forecast is

Security

closed

Soybean futures dropped sharply following the government's
August Crop report which forecast a larger production than had
been previously estimated.
Prices declined for the third straight

output for the week beginning Aug. 10 was equal to
11.8% of the utilization of the Jan. 1, 1959 annual capacity of 147,-

actual

1958

above

little.

industry began Wednesday, July 15.]

production)

ran

little influence in the grain market during the past
price of wheat remained unchanged alter fluctuating
narrowly during the week. Corn prices dropped a fraction as did
those for barley. Oats remained steady but rye prices edged up a

Actual

A

tolls

but

ago,

year

Daily Wholesale Commodity Price Index, compiled by
Bradstreet, Inc. was 277.24 (1930-32 = 100) on Aug. 17,
compared with 276.06 a week ago and 278.86 one year ago.

week.

operating rate of the steel companies will average *21.0% of steel
capacity for the week beginning Aug. 17, equivalent to 337,000
tons of ingot and steel castings (based on average weekly produc¬
tion of 1947-49) as compared with an actual rate of *20.9% of
capacity and 335,000 tons a week ago. [ED. NOTE: A strike in the

633,670 net tons.
11.9%.

a

&

There

11.9% of Capacity

on

Steel

than

2

page

I Like Best
sound

among

The

Dun

'

Output Based

concentrated

was

general commodity price level up over last week's figure despite
declines in the prices of cocoa, flour, rice, beek and other commod¬

are

Steel

decline

Higher prices for nogs, rye, tin, zinc and rubber moved the

50

American

failed

Rises

1

The

Also, failures ranged 6% above

total of 253 in the comparable week of 1939.
the week's

Wholesale

according to Penton's Foundry List. Canada has
less than two years ago. Trends since 1957 are
fewer makers of gray iron, brass and bronze,
and aluminum castings, but more plants are casting magnesium
and zinc. Leading states: Ohio, California, Pennsylvania, Illinois,
Michigan, New York, Indiana, and Wisconsin.
'

from

The

level for the first time
262 in the similar week

1958
from

up

1957.

levels in all other groups.

two years ago,

the

of

manufacturers

grade
was unchanged at $38.33 a gross ton.
Tonnage is being booked for
delivery after the strike settlement.

There

their

were

Retailing accounted entirely for the week-to-week downturn;
149 last week. Mean¬
while, manufacturing casualties rose to 45 from 39, construction
to 43 from 38, and commercial service to 33 from 26.
Fewer

"Steel's" scrap price composite on No. 1 heavy melting

512 foundries,

Exceeding

casualties in this group dropped to 126 from

total.

mixed.

Thursday, August 2G, 1959

.

.

Continued

Drop in Aug. 13 Week

climbed to 43 from 25 in the previous week and 35 last year.
Twenty-three businesses succumbed with liabilities in excess of
$100,000, as against 24 in the preceding week.

vised

The U. S. has 5573

orders were 15.8%

new

casualties
involving liabilities of $5,000 or more, which fell to 226 #om 249
a
week earlier and which were off slightly from the 227 a year
ago. In contrast, small failures, those with liabilities under $5,000,

Steelmaking operations last week edged up to 12% of capacity,

Steel

Inc.

weeks, casualties

All

accounted for most of it.

nual ingot capacity is

nine

the prewar

"They've combined.the lessons of technology
learned from us with
low employment costs ... an extremely
tough combination to beat," he says.
During July, the Port of Chicago received 37,459 tons of for¬
eign steel vs. 35,635 tons in June. Belgium, Norway, and Germany
.

Failures

of last year and from 222 in

Corp Vice-President.

.

below; and

Commercial and industrial failures dipped to 269 in the week
ended Aug. 13 from 274 in the preceding week, reported Dun &

Bradstreet,

the strike aiding imports. "With the
foreign producers are threatening to move,
big way!" asserts William M. Hall, Wheeling Steel

steelmaker

One

5 2%

.

below.

The State of Trade and Industry
to

were

Financial Chronicle

Aug.

8,

like

period last year.
In the preceding
week, for Aug. 1, an increase of 6% was reported.
For the four
Aug. 8, a gain of 7% was registered'ana for Jan. 1
to Aug. 8 an 8% increase was noted.

The

the

projections made above.

newest

acquisition
is
the
largest yet made by this rapidly
growing company).

weeks ended

According to

the

Federal

Reserve

System

department store
sales in New York
City for the week ended Aug. 8 a 9% increase
was
reported over the like period last year.
In the preceding
week, July 25, a 3% increase was reported.
For the four weeks
ended Aug.8 a 6% gain over the same
period in 1958 was recorded
and

Jan.

1

to Aug.

showed

a

4%

increment.

"

■

C. B. Demarest Opens
KEW

Brooks

GARDENS,
Demarest

securities

120-39

N.

Eighty-third
name

Company.

Y.

—

conducting

business from

der the firm

rest

is

offices

Avenue

C.
a

at,

un¬

of C. B. Dema¬

Volume 190

Number 5874

.

.

The Commercial and Financial
Chronicle

.

The following statistical tabulations

Indications of Current
Business Activity

29

(753 )

latest week
week

or

or

month available.

month ended

on

production and other figures for thti.

cover

Dates shown in first column

that date,

in

or,

of quotations,

cases

either for th*J

are

are as

of that date*]
—*

'

AMERICAN

Latest

IRON

AND

STEEL

INSTITUTE:

Week

Indicated Steel operations
(percent capacity)———.

Equivalent
ingots

to—

Steel

;

gallons each)
Crude runs to

(bbls.

average

—

(bbls.)

____—.

—

Ago

Ago

Latest

Previous

Year

§11.9

*11.8

12.9

62.6

§337,000

*335,000

365,000

1,690,000

(bbls.)

117,836.000

7,997,000

!Aug.

28,167,000

28,948,000

6,802,425
7,836,000
28,434,000

._

Aug.
Aug.

1,436,000

1,699,000

1,644,000

12,415,000

12,046,000

11,457,000

ASSOCIATION

OF

6,788,975

Shipments

6,573,000

6,466,000

6,641,000

186,496,000

192,752,000

Aug.

29,298,000

28,494,000

Aug.

142,994,000

139,154,000

125,818,000

177,297,000
26,306,000
124,838,000

56,573,000

55,668,000

54,349,000

67,251,000

____

Aug.

8

532,304

544,464

554,426

619,204

434,596

480,032

457,519

521,867

Public

construction.
construction

State

and

____

municipal-

Federal

___.

—

—

Aug. 13

$412,400,000

$411,700,000

$446,600,000

$336,876,000

230,200,000

197,000,000

228,100,000

152,018,000

.—Aug. 13

182,200,000

214,700.000

218,500.000

184.858,00'

Aug. 13

150,500,000

175,600,000

139,100,000

148,749,000

.

_

Aug. 13

sCOAL OUTPUT

Bituminous

(U.

S.

MINES):
(tons)—

lignite

ELECTRIC

BRADSTREET,
IRON

AGE

*

COMPOSITE

(per

PRICES

—

—

ton)——:

gross

(E.

&

M.

J.

refinery

(New

Lead

(St.

♦Zmc

(East

St.

Straits

U.

at—

(New

.

7,185,000
362,000

1,520,000
44,000

7,923,000

368,000

8

131

121

126

120

13,648,000

13,675,000

13,415,000

12,851,000

Aug. 13

269

274

242

262

Aug. 11

6.196c

6.196c

6.196c

6.188c

Aug. 11
Aug. 11

$66.41

$66.41

$66.41

$66.49

$39.83

$39.83

$39.17

$41.83

99.5%)

29.600c

30.900c

26.100c

27.600c

25.675c

25.475c

Aug. 12

12.000c

12.000c

12.000c

11.000c

——.——Aug, 12

11.800c

11.800c

11.800c

10.800c

—Aug. 12

11.500c

11.500c

11.500c

10.500c

Aug. 12

11.000c

11.000c

11.000c

10.000c

at

——

at

—

DAILY

Aug. 12

24.700c

24.700c

24.700c

24.700c

Aug. 12

101.750c

101.750c

102.750c

95.125c

—

—

-Aug. 18

83.48

84.07

84.06

91.13

—

Aug. 18

86.11

85.98

85.85

93.23

Aug. 18

89.92

89.92

89.23

98.25

-Aug. 18

87.99

87.72

87.59

96.23

Aug. 18

85.85

85.72

85.46

93.23

——

A

Group

Aug. 18

81.29

81.17

81.29

86.11

Aug. 18

84.81

84.68

84.94

89.64

———Aug. 18

85.46

-85.33

85.07

93.23

Aug. 18

88.27

88.13

87.59

97.16

—_———

Public Utilities Group—
Industrials Group

._____.

—

MOODY'S

—_ —

——

—_—.

Average corporate-.

.__——l—_

(net

seasonal

adjustment—
INSTITUTE—

of

sales

May

from

ultimate

to

tons)

————.

.—

——i———

1,377,000

6,043,665
5,922,648

*6,376,771

3,943,900
3,897,700

)

__

_
_

~HIIII

Railroad
Public

—III—III—

Group

MOODY'S

:—

_____

Utilities

Industrials

—

*6,243,859

121,017

*132,912

46,200

2,906,050

*3,154,278

3,876,637

147

*144

140

119

♦136

112

50,409,616

50,434,196

44,707,315

$841,988,000

$842,723,000

$768,636,000

56,643,611

56,508,384

55,432,513

—

$90.54

$90.32

$83.10

—

98.88

98.23

89.89

79.20

♦79.20

75.08

40.6

40.5

39.2

I

customers—

—

EARNINGS AND

——

___

May 31

.

HOURS—WEEKLY

ESTIMATE—U.

OF

DEPT.

S.

LABOR—Month of June:
All

manufacturing

._____■

Durable goods ___
Nondurable goods

——_:
:

Hours—
All

manufacturing

;

—.————.—

41.2

41.1

39.6

.

39.6

*39.6

38.7

—_______—

$2.23

——

Hourly

earnings^
manufacturing

All

_

Durable goods
Nondurable goods
INTERSTATE
Index

middle

at

LIFE

PURCHASES

(000,000's

$2.12

2.39

2.22

*2.00

1.94

64.2

64.4

63.6

$4,408

INSTITUTE

—

INSURANCE— Month

of

June

omitted):

Ordinary

—,

Industrial

$2.23

2.40
2.00

of

(1947-49=100)

INSURANCE

OF

-

COMMISSION—

COMMERCE

Railway Employment

of

July

:—■.——
.___.—.—-—

________———

Group

—_

._.——■_________—-——

Orders

—

COMMODITY

Production

ROUND-LOT

3.29

4.72

4.19

Number

of

4.47

3.86

Number

of

motor

trucks.

4.58

4.59

3.99

Number

of

motor

coaches^

4.72

4.73

4.75

4.19

Aug. 18

5.08

5.09

5.08

4.70

(

4.81

4.80

*»'•Aug- 18

4.75

4.76

Aug. 18

4.54

4.55

4.79
.

,.

4.19
3.93

382.9

381.8

382.3

398.1

366,851

351,802

255,670

298,376

——r
-

—

Aug-

o

336,991

331,482

180,359

Aug,

»

98

98

Aug.

o

578,875

550,614

••

'

ACCOUNT

OF

purchases—____

Short

sales

Other

sales

Total

$4,206

•$3,873

598

633

*600'

1,091

754

*786

$6,097

$5,593

►$5,264:

667,059

679,104

388,572

555,685

558,337

321,245

111,282

120,482

66,967

92

285

360

——

\

—

off

the

92

471,682

110.91

109.33

109.30

Other

sales

Total

Short

sales

Other

sales

initiated

;

Total

628,350

2,123,440

1,944,660

1,838,600

2,542,870

2,280,270

2,466,950

Month

595,510

Production

—•———————-----*;uiy 24

721,752

864,624

739,618

818,340

———

account

of

^u]y
-4
Juiy <24

123,970

140,560

115,890

146,760

753,172

786,092

713,250

757,269

July 24

877,142

926,652

829,140

904,029

3,522.972

3,862,484

3,483,448

3,897,210

508,380

584,090

496,800

843,810

3,113,692

3,315,262

3,013,510

3,122,679

3,622,072

3,899,352

3,510,310

3,966,489

members—

Number
Dollar

SECURITIES

dealers

by

2ujy 24

of

EXCHANGE

(customers'

shares

Jug
2"{y

2*

July 24

,

—

—

^}yy

7,,

1,736,861
$92,082,884

1,780,171

1,653,714

1,478,058

$92,811,252

$90,089,463

$68,517,401

Customers'

323,700

1,188,000

1,047,470

298,785,388

299,044,482

224,903,638

bonds—■_!—.——.

105,872,000

106,395,664

118,287.158

issuesother collateral—

473,000

543,000

958.611

2,350,000

2,329,000

2,120,363

33,455,000

33,428,000

36,082,000

shares—__——:

on

—JUjy J4
J.^!y j.
ZZZl
July 24

short sales

Dollar

.

value

Round-lot

,

shares—Total

of

Short

sales

Other

sales

Round-lot

—

ROUND-LOT

FOR

sales

purchases by dealers— Number of shares

EXCHANGE

Total

1,537,468

1,606.150

1,521,088

4,869

6,153

7,682

19,974

1,599,997

1,529,786

1,501,114

$75,231,473

$79,381,710

$77,071,580

$66,151,566

sales by dealers—

Number

TOTAL

1,510,654

1,505,785

S. Govt.

OF MINES)—

_

STOCK

AND

ACCOUNT

round-lot

SALES

ROUND-LOT

OF

MEMBERS

ON

THE

N.

Y.

S.

DEPT.

sales

Other

sales

381,920

433,320

436,710

381,920

433,320

436,710

506^670

July 24

614,640

593,870

564,070

489,470

506,670

of June

LABOR

STOCK TRANSACTIONS

———

:

.<

grains

:
crops

——

—:

._!

.____

Potatoes
—______

Livestock

—'

————

—

———-

——

products

—-

—___

—

242
229

245

250

230

223

254

208

269

246

213
266
163
199
223
228
297
509
252

229

163

164

205

199

223

270

230

234

217

168

508

474

258

272

232

227

329

338

Poultry and eggs

124

126

169

Wool

241

240

215

$295,000,000 $288,000,000

$280,000,000

288,681,726

284,705,907

275,466,164

110,278

111,019

102,094

$288,792,005

$284,816,926

$275,568,258

416,576

418,452

429,147

$288,375,429

$284,398,474

$275,139,111

6,624,571

4,601,535

4,860,888

$288,792,005
5,836,768

$284,816,926
5,350,391

$275,568,258
5,118,714

$282,955,237

$279,466,535

$270,449,544

animals

Meat

343

U. S. GOVT. STATUTORY DEBT LIMITATION
—As of July 31 (000's omitted):

Total

face

Total

(SHARES):

amount that

gross

Guaranteed
y

—"JT„
^24
Juiy
24
—

93

t

fresh

vegetables,

—

Oil-bearing

sales—

PRICES, NEW SERIES

—

96

15:

————

may

be outstanding

at any time
Outstanding—

STOCK

Total sales

WHOLESALE

100

•

J"!y 2?

JgJg

—'

33,350,000

—

OF

1910-1914=100—As

Commercial

public debt—
—
obligations not owned by the

Treasury

.

Short

30,262,000

36,528,000

___

INDEX
AGRICUL¬

FARMERS

BY

30,078,000

32,992,000

33,621,000

(per cent).—

Crops

Dairy

239,760

1,094,000

products

Tobacco

Customers' other sales

$3,168,445

balances-

credit

_

_

$3,549,000
164,000

Fruit
—

—-—--

—

farm

Food

$3,546,000

364.000

Feed, grains and hay

purchases)—t

:———

value

of

RECEIVED

TURE

£33,206,000

accounts—

(,Dairei&;—_
mills Tbarrelsl
lUOiivw/
month (barrels)

from

Capacity used

All

£20,763,000

June

(barrels)

end

at

Cotton

^..
Y. STOCK
COMMISSION

Odd-lot purchases by dealers (customers
sales)—*
Number of orders—Customers' total sales

of

Shipments

PRICES

£57,498,000

158,000

PORTLAND CEMENT(BUREAU

NUMBER —U.

:

—

—

sales

listed

526,810

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS
ON
Odd-lot

of

Stocks

2.94
3.97

363,000

borrowings on U.

400,900

*

—

value

Member borrowings

355,600

4.54

2.71
3.28

S._——

free

Market

429,830

July

balances---—

and in banks in U.

listed

405,730

3.77

2.67
3.18

customers

of

358,960

5.44
4.31

BRITAIN
of

margin
debit

net

to

value

346,560

3.79

4.29
4.05

(000's omitted):

Market

*luJy
24
July 24

3.09

4.36
3.91
3.57

GREAT

IN

customers'

of

Member

floor—

sales

EXCHANGE

Total

2.96

(214)

——

—

LTD.—Month

carrying

hand

on

68,700

--

Tel.)

EXCHANGE—

extended

653,740

purchases
sales

firms

45,300

round-lot transactions for

Other

2,425,130

ISSUES
BANK

customers'

Cash

July:

—

&

—_—J

of June 30

As

407,240

the

Tel.

Amer.

STOCK

24,100

on

of

—

incl.

CAPITAL

YORK

417,850

•

sales

2,013,960
2.385,970

2,346,590
335,610

STOCKS—Month

OF

—

MIDLAND

12,400

—

Short

NEW

335,530

sales

Total

^u{y £4
'*ujy 24

419,430

—

purchases

Total

2,580,010

372,010

YIELD

(10)

2uJy 24

sales

transactions

Total

2,465,690

AVERAGE

(125)

(200)

Credit

July 24

_h_

(15)

Average

Total

floor

purchases
sales

Banks

\

cars

(25)

(not

Member

July 24

Short

Total

—

initiated

July:

288,874

56

567,234

MEM¬

sales

transactions

Total

COMMON

100

Industrials
Railroads

NEW
109.42

of

passenger

WEIGHTED

Utilities

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered
Total

number

MOODY'S

4.44

4.78
4.59

8

a

Aug.

-*Aug. 14
FOR

Total

Insurance

—

TRANSACTIONS

of

vehicles-

4.07

*

100

=

FROM
MANU¬

4.42

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
AVERAGE

SALES

S.—AUTOMOBILE

ASSN.—Month

4.71

_.Aug. 18

-

—._——.__

FACTORY

U.

4.07

Aug. 18

—

——

1949

IN

4.42

ASSOCIATION:

(tons)—_—
(tons)

VEHICLE

PLANTS

4.70

4.56

INDEX

received

Other

MOTOR

4.13

-Aug. 18

—

Percentage of activity
.Unfilled orders (tons) at end of period

Other

Total

Aug. 18

——»T..Aug. 18

Group

Group

NATIONAL PAPERBOARD

576,510

630.410

582,^50

1,203.580

14.945,330

15.791,830

14,804,890

18,527,810

15.521,840

16,472,240

15,387,840

19,731,390

Total gross

public debt and guaranteed

obligations
Deduct—other

IJ. S. DEPT. OF

—

—

outstanding

public

debt obli¬

gations not subject to debt limitation

(1947-49= 100):

Commodity Group—
.

—

All .commodities
Farm

other

than farm

and

foods—

119.4

119.0

87.1

87.8

88.6

93.2

106.1

106.5

107.5

111.2

11

95.0

96.5

99.8

109.9

Aug. 11

128.2

;—..

«ood8——————"IIIi;— lul

All commodities

119.2

119.1

products

Processed

128.2

128.2

126.0

outstanding
Balance face amount of obligations,
Grand

under

of Jan.

1,

figure. Ulr.cludes 1,030,000 barrels of foreign crude runs.
?Rased on
1959, ass against Jan.
l, I9bts
wuo.
Jan._l,
1953 oasis
basis oi
of 140,742,570 tons.
tNumber of
—

Monthly Investment Plan,
one-half

cent

a

iPrime Western Zinc

pound.




sold

—

on

-i-i;—^

delivered

new^

annual capacity

of 147,633,670 tons

orders not reported since introduction of

total

above

issuable

authority

DEBT DIRECT AND
GUARANTEED—(000's omitted):

UNITED
As

♦Revised
as

.

customers—Month of

Aug. 18

~.TAug-

Aa

'

23,944,000

*1,683,000

__

omitted)

(000's

ultimate

FACTURERS'

—

fi

.4

36,470,000

1,140,000

variation—

seasonal

"

.

*

23,970,000

SALES—FEDERAL RE¬

STORE

May

BOND

YIELD DAILY AVERAGES:
U. S. Government Bonds

Baa

60,187

257,911

'

Railroad

Aaa

___■>_—

ELECTRIC

Revenue

LIFE

AVERAGES:

Aa
Baa

tons)——

tons)

(net tons)—

for

Without

EDISON

S.

Aaa

75,544
102,162

169,386

Weekly earnings—

28.800c

at—

York)

(net tons)

(net

(net tons)
stock at end of month

AVERAGE

29.600c

-

:

PRICES

anthracite

Number of ultimate customers at

Aug. 15

65,119

73,101
60,454
fift di;i
182,033

-

(tons)

SERVE SYSTEM —1947-49 Average=100—
Month of July:

404,000

Aug. 12
Aug. 12

——

.—

Government Bonds———.
Aver.age corporate

••fi

6,840,000

8

period

—

—

at—

Louis)

BOND

8

pounds)

Durable goods
Nondurable goods

<_

——

(primary pig.

tin

36,109,000

2,000

coke

coke

Adjusted

QUOTATIONS):

at

Louis)

Aluminum

MOODY'S

_____—

.__

at—

York)

(delivered)

Zinc

.___

-

Export

79,400,000

of

(net

Beehive
Oven

PRICES:

Electrolytic copper—
Domestic refinery at
Lead

39,100,000

of

(BUREAU OF MINES)—Month of June:

Production

&

._——_ —

Scrap steel

METAL

DUN

—

183,557

(BUREAU OF MINES)—Month

Pennsylvania

FACTORY
_

INC

Finished steel (per lb.)
Pig iron (per gross ton)_

"

31,700,000

INSTITUTE:

INDUSTRIAL)

126,327

July:

Month

—

Aug.

Electric output (in 000
kwh.)__
FAILURES (COMMERCIAL AND

end

Kilowatt-hour

Aug.
Pennsylvania anthracite (tons)
Aug.
DEPARTMENT STORE SALES INDEX—FEDERAL
RESERVE
SYSTEM—1947-49 AVERAGE = 100
:

at

OUTPUT

COKE

BUREAU OF

coal and

155,213
131,460

(tons of

.———:

DEPARTMENT

Aug. 13

i

construction.

output all grades

(tons

Bituminous coal and lignite

S.

Private

EDISON

Stocks
COAL

smelter

pounds)

Oven coke
.

ENGINEERING

—

zinc

2,000

of

_

CONSTRUCTION

Slab

1,545,000
11,730,000

6,153,000

Aug.
Revenue freight received
from connections (no* of
cars)—Aug.

ENGINEERING
NEWS-RECORD:

163,857
112,710

July:

7,597,000
27,589,000

183,481,000
29,004,000

AMERICAN

CIVIL

(BUREAU OF MINES):

Production of primary aluminum in the U. S.
(in short tons)—Month of May—_.
—
Stocks of aluminum (short tons) end of May

6,836,185

Aug.
:

RAILROADS:
Revenue freight loaded
(number of cars)—:—.

6,807,975

Aug.

at

__________

Distillate fuel oil
(bbls.) at
Residual fuel oil
(bbls.) at

,

ALUMINUM

AMERICAN ZINC INSTITUTE, INC.—Month of

refineries, bulk terminals, in transit, in
pipe line

Finished and unfinished
gasoline

Kerosene (bbls.) at

U.

Month

Aug. 22

Aug.
Aug.

.

______

(bbls.)
Distillate fuel oil
output (bbls.)
Residual fuel oil
output (bbls.).
Stocks at

Total

Ago

Month

of
_

stills—daily average
Gasoline output
(bbls.)
Kerosene output

,

Week

Year

Aug. 22

—

.<>■:

42

;■

Month

and

castings (net tons)
AMERICAN PETROLEUM
INSTITUTE:
Crude oil and
condensate output—daily

'

Previous

of

STATES

GROSS

July 31

General

funds

balance

.

w,cic at
enters where freight from East St. Louis exceeds
basis at centers

Net

debt

Computed annual rate

2.909%

2.867%

2.632%

_

SO

The Commercial and

(754)

Financial Chronicle

.

.

Thursday, August 20,

.

1959

\

* INDICATES

Securities

Now

in

Registration
outstanding option agreements

under

issuance

it Abbott-Warner Co., Inc.

stock

Aug. 12 (letter of notification) 62,500 shares of common

These securities will not be is¬
subscription agreements are notexercised.
Proceeds—For working capital and surplus
of subsidiaries and for general corporate purposes.
Un¬
derwriters—Allen Investment Co., Boulder, Colo.

Price—$2.70 per share.
Proceeds—To
estimates and to submit bids, as a prime con¬
tractor on specialized construction projects. Underwriter
•—Strathmore Securities, Inc., 605 Park Bldg., Pittsburgh
22, Pa.
stock

(no par).

prepare

•

Acme

Missiles

Construction

&

July 24 filed 200,000 shares of common stock (par 25c),
of which 150,000 shares will be offered for public sale
50,000 shares will be
offered for the accounts of the present holders thereof.
Price—$6 per share.
Proceeds—For general corporate
purposes, including additional personnel, office space,
equipment, and the provision of funds necessary to
compete for certain contracts. Office—2949 Long Beach
for the account of the company, and

Road, Oceanside, L. I., N. Y.
Lomasney & Co., New York.
•

Aid

Underwriter

—

for

cents

25

sued if

Myron A.

Investment &

writer—-Allen Investment
Allied

14

(par

10

I.

'

.

Products, Inc. (8/20)
July 24 filed 115,000 shares of common stock (par $1).
Price—To be supplied
by amendment.
Proceeds—For
general corporate purposes including the construction
of additional gas producing plants and the
expansion of
industrial

and

town, Pa.

Underwriters—Kuhn, Loeb & Co. and Reyn¬

olds

Co.

&

delphia,

medical

New

of

operations.

gas

York; and Drexel

Office—Allen&

Co.

of

Phila¬

Pa.

it Aiyeska Ski Corp., Girdwood, Alaska
4 (letter of notification) $94,000 of 10-year

Gas Corp.

basis

stockholders

to

of

shares

one

of

new

of

share

of

stock

common

record

Aug.

6,

1959,

the

on

preferred stock for each 30

then

held.

Rights expire Aug.
26, 1959. Warrant, not exercisable before Jan. 20, 1960,

"will

entitle

stock.

debentures
to

offered

be

holder

to

Price—$100.50

purchase
share

per

3

shares

of

Proceeds—To

common

pay

con¬

struction

costs. Underwriters—White, Weld &
Co., New
York; and Sterne, Agee & Leach, Birmingham, Alabama.
Alaska Mines & Metals

Inc.

•

American

from

431,200 shares

are to be reserved for sale to the holders
debentures due 1962 issued by DeCoursey-Brewis
Minerals Ltd., the company's parent
(payment for the
shares by such debenture holders
may
be made by

of 6%

delivery of debentures

at par

plus interest with premium
for Canadian exchange
rate).
Purchasers will receive
common stock purchase warrants on
all shares purchased
for cash

rate of
per

or

one

for the 6% debentures of the
parent at the
for each five shares purchased.
Price—$1.25

share. Proceeds—For general corporate
purposes and

working capital.
Ala

Office—423

Fourth

Ave.,

Anchorage,

Underwriter—To be named by amendment

xa.

it American
Nov.

ied 300,000 shares of class B

j

(non-voting) com¬
(par $1) of which 200,000 shares will be
pub¬
licly oflered and 100,000 shares will be offered to cornstocK

mon

gar" pe-sonnel. Price—To be supplied

by amendment.

Frojieeds-For general
out. Jtiny

of

new

corporate purposes including the
supermarkets. Office—1610 State St

Boils, Iaano. Underwriter—J.
Cit;
•

A.

Hogle & Co., Salt Lake

New York. '

anc

Aldens, Inc.

July 21 filed $4,550,600 of 5%
convertible subordinated
debentures, due Aug. 1, 1979, being offered to common

stockholders
of record Aug.
°*
(

ebe.ntures for each

rights

t

expire

on

14, 1959

16

Aug.

on

common

31;

the basis of $100

shares

debentures

then

held;

convertible

common stock at $38.50

per share. Office-Chicago,
rict—At par. Proceeds—For
general corporate pur-

ru

III.
pos

s.

Underwriter—Lehman Brothers, New York.
•/ Hied Colorado
Enterprises Co.

ini ^31
?ind V?'8"'61,8 ?hares of
51,140 shares of class A-l
ana

class A

common stock

common

stock for issu¬

o

ance

under

outstanding subscription agreements at 75
6,576,200 shares of class A common

cents per share and

men IN PROSPECTS!
C

hicago and Mid America

your securities.
J

ore

lour

Here

are

offers you

over

Eccurit

abundant prospects for

1,400,000 stockholders with

than $20 billion invested in
r-

publicly held corporations

osf.effective way to interest these
investors in your
js is to advertise in
the
Chicago Tribune. The Tribune

before both professional
buyers and the
t neral public. Ask your Tribune
representative how you can
increase your sales in this rich market.
]

aces your message

(!lljira£0 QTtihime
THC

WOfttO'S

Buyers

13,

or

issuable

are

C RE AT EST




NCWSfAtu

under

American

ADDITIONS

SINCE

PREVIOUS

ITEMS

REVISED

ISSUE

only to the stockholders of the company. Each subscrip¬
a unit in Apache Oil Program 1960, will entitle

tion to

subscriber

the

to

subscribe

also

to

200

rights

for

it Apache Realty Corp.
13 filed $1,500,000 of 6% subordinated debentures
360,000 shares of common stock (par $1). Price—
$6,200 per unit of five debentures and 1,200 shares of
common stock. Proceeds—For the purchase and develop¬
ment of land to be made into a shopping center in St.
Anthony, Minn., and other-YeaPSstate dealings. Office—
Aug.
and

523

Marquette Ave., Minneapolis, Minn. Underwriters—

The issuing company and its

subsidiary, The Fund Corp.

of Minneapolis.

Appalachian National Life Insurance Co.
July 1 filed 966,667 shares of ppmmon stock, including
160,000 shares reserved for option to employees and di¬
rectors. These shares will not' be sold in N. Y. State.

share/Proceeds—To be used for the con¬
business. Office—1401
Bldg., Knoxville, Tenn. Under¬
writers—Abbott, Proctor & Painfe, New York; Cumber¬
Price-—$3

per

of the

duct

company's insurance

Knoxville

of

Bank

Securities

Corp., Nashvill^; Tenn.; Davidson & Co.,
Corp. of Fidelity, both of Knoxville,
Offering—Expected latter part of August.

Inc. and Investment

Arapahoe Chemicals, Inc.
(letter of notification) 13,000 shares of common

Aug. 3

Phoenix)

holders

Life

Buyers

Tenn.

with various
Insurance Co.

agreements

and American Life Assurance Co. (both of

per¬

stock

to be offered for subscription by stock¬

(no par)
at

the

right

of

one

new" share

for^ each three

mitting them to purchase stock at $1.25 per share. Sales
personnel have been given the right to purchase stock
at $1.25 per share up to the amount of commission they

shares held; rights to expire in 30 days. Price—$20
share. Proceeds — For capital investment; research

receive

Pearl

stock sales made by

them.] Proceeds—For the
operation of other branch offices, both in Arizona and
in

on

other

Ariz.

states.

Office

East

2001

—

Roosevelt, Phoenix,

Underwriter—None.

American Hospital Supply Corp.
'
April 20 filed 20,610 shares of common stock (par $2) to
be offered in exchange for common stock of Massillon

2020

Co.

the

on

for

one

basis

share

of

nine

Ridge

Avenue, Evanston,
Statement effective July 29.
American

June

25

Investors

filed

shares

Massillon

of

of

3

shares

Office—

111.».Underwriter—None.

Syndicate, Inc.

600,000 shares of

of^common

($1 each)
per unit.

1 share of pre¬
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
national Trade Mart, New Orleans, La.
Underwriter—
Lindsay Securities Corp., New Orleans, La.

($9).

Price—$12

and

American

Mines, Inc.
June 29 filed 150,000 shares of common stock. Price—
$5 per share. Proceeds—To assume and pay an option
held by its Mexican subsidiary to purchase certain min¬
ing claims in the State of Durango, Mexico, owned by
Compania Minera La Bufa, S. A., by paying to such
$50,000; to construct and place in working oper¬
mine, mill and accessories capable of processing

company

ation

a

100 tons of

gold ore per day estimated to cost $350,000;
payment of about $15,000 of other obligations; to carry
on with the balance of the
proceeds an exploration pro¬
gram for additional gold and mineral properties both in
Mexico

and the United States. Office
Bank of the
Southwest Building, Houston, Tex. Underwriter—None.
—

American & St. Lawrence
Seaway Land Co., Inc.
July 8 filed 500,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—To pay off mortgages
and

for

general

corporate purposes. Office
42nd Street, New York.
Underwriter—A. J.

Co., Inc., New York.
•

60

—

Gabriel

&

and

class

—To

added

be

to

B

share

stock

supplied
the

for

held

by

general

each
of

as

four
the

amendment.
funds

of

the

shares
record

of

class

date.

Proceeds

—

company.

A

Price

To

be

Office—

542^ North Meridian Street, Indianapolis, Ind.
writer—City Securities

Under¬

Corp., Indianapolis, Ind.

Ampai-American Israel Corp.
July 30 filed $3,000,000 of five-year 5% sinking fund
debentures, series G, due 1964, and $3,000,000 of 10-year
6% sinking fund debentures, series H, due 1969. Price—
At 100% of principal amount. Proceeds—To
develop and
expand various enterprises in Israel. Office—17 E. 71st

Street, New York. Underwriter—None.
pected sometimd during October.

Offering—Ex¬

Apache Oil Corp.

May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the
purchase of
common

stock

(par $1.25).

$50,000,000 of 20-year senior debentures,
due Aug 1, 1979, not to be subject to redemption for
the first five years.
Office—South Bend, Ind. Under¬
writers—Salomon Bros. & Hutzter-, and Lehman Brothers,
11

filed

both

of

New

York.

Australian Grazing & Pastoral Co.,
Jan. 13 filed 4,000,000 shares of common

Ltd.
stock.

Price—

(56cents per share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.

At

par

Office —1301

Avenue

L,

None.

Kamon

is President.

Robert

Babcock

Radio

Cisco, Texas.

Engineering^ Inc.

Underwriter

—

(8/24-28)

100,000 shares j^apital stock (par $1).
supplied by amendment.
Proceeds—For
general corporate purpose^jpc^Uiding the reduction of

July

29 filed

Price—To

be

loans, for addition^ Rocking capital, and the
carrying of larger invenJtpi?ie$/~ Office—1640 Monrovia
Avenue, Costa Mesa, Ca^.._Un^^writer—Schwabacher
& Co., San Francisco,
bank

Bankers Preferred life.'Htsttffance Co.

Jan. 30 (letter of notiifj^ion)-;BI0?fi0d-shares

of common

(par $1.60). Price—$3 pen share. Proceeds—For
incidental to»«peraiiQta^of an insurance com¬
pany.
Office—Suite 61S^1T. &'^- Bldg., Denver, Cofo.
Underwriter—Rings by \rilnderWMters, Inc., Denver 2,
stock

expenses

Colo.

sr

13fL/1ofnflnlc

3T< ~

—

Inf*

April 9 (letter of notification)-1,200,000 shares of com¬
stock (par 10;
cents^. - Pric&—25 cents per share.
Proceeds—For mining expenses/ Office—c/o Harold A,
Roberts, President, Arrofe Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, %R6senthaF>s& Co., Albuquerque,
mon

—

N. Mex.

Letter to be ^friended."
i

- 'WV-

Petroleum Cprp. .
~~.s
14 filed $7,200,000.bL5:83.fo^convertible

it Belco

subordin¬

debentures, due 197*1, and 400,000 shares of common
(par $1). Price -^'Ta be supplied by amendment.
Proceeds—For general corporate purposes, including re¬
ated

3 filed 108,144 shares of class A stock (par $1)
limited voting, to be offered for subscription by holders
of outstanding class A and class B stock at the rate of
adidtional

(8/31-9/4)

Investment Co.

Associates

Aug.

Aug.

(9/15-30)

Aug.

one

•

—

St., Boulder, Colo. Underwriter—None.

East

Offering—Expected in August.

American States Insurance Co.

Office

development and other working capital.

per

and
2800

American

of

common.

common stock
(par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting

ferred

the

purchase of one share per right of the company's $1.25
par value common stock. Warrants evidencing the right3
will be nontransferable prior to Aug. 16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unles3
Apache Oil Program 1960 commences operations on or
before June 30, 1960, all unexercised rights will be void
as of 2:00 p.m.
(CST) on that date, and their purchase
price will be refunded. Price—$12,000 per unit. Pro¬
ceeds—For general corporate purposes.
Office — 523
Marquette Avenue, Minneapolis, Minn. Underwriter—
APA, Inc., the corporation's subsidiary.

land

Credit Co,

1.958, filed 5,000,000

shares of common stock,
of which 4,545,455 shares of this stock are to be offered
for public sale at $1.75 per share.
[Shares have been

•

-ft-Albertson's, Inc. (9/7-11)
Au}\ 13

Beverage Corp.

250,000 to 2,000,000. Office—118 N. 11th St., Brook¬

common

(par $1),
publicly and

1,500

lyn, N. Y. Underwriter—None.

Rubber

be offered

to

and

debenture

July 16 filed 950,000 shares of common stock. Proceeds
—The stock is to be exchanged for all the outstanding
capital stock of a group of "Golden Age" companies.
Stockholders on Aug. 10 approved the exchange offer,
and voted to increase the number of outstanding shares

Feb. 25 filed 1,431,200 shares of common stock
are

$1,200

stock. Price—$1,800 per unit. Proceeds

salaries, survey for ski lifts, legal and accounting
expenses, etc. Underwriter—None.

of which

1,000,000 shares

of

uints

in

common

policy holders in

July 8 filed 30,843 snares of $5.50 series A cumulative
preferred stock, par $100 (with attached warrants) being
offered

6%
c^nd 117,500 shares of common stock (no par)

Aug.

issued

Alabama

(9/9)

delphia, Pa.

shares of

Air

Co., Boulder, Colo.

Petro-Chemicals, Inc.

filed 100,000 shares of class A common stock
cents). Price—$4 per share. Proceeds—To be
aaded to company funds.
Office—Overbrook Hills, Pa.
Underwriter—Philadelphia Securities Co., Inc., Phila¬
July

—For

be

supplied, together with the interest
rate on the notes and the underwriting terms, by amend¬
ment.
Priceeds—For general corporate
purposes,
in¬
cluding the providing of funds for expansion. Office—
Akron, Ohio. Underwriter—Paine, Webber, Jackson &
•

Enterprises Co.

13 filed 3,000,000 class A common stock (par 25
cents).
Price—90 cents per share. Proceeds—For gen¬
eral corporate purposes. Office—Boulder, Colo. Under¬

stock.

Curtis.

Colorado

Allied

Discount, Inc. (9/16)
Aug. 12 filed $1,000,000 of capital notes, 1.959 issue, due
Sept. 1, 1974, which will be convertible into common
stock, and in addition filed 150,000 shares of common
Price—To

share.

per

the options and

July

(9/2)

Corp.

at

•

The offering is being made

stock

of all existing debts to banks. Office — 630
Ave., New York. Underwriters—White, Weld &
Co., and Goldman, Sachs & -Co^-both— of- New York.
Offering—Expected in late September.

payment
Third

Berens

Real

Estate

lnvestfi|er^£orj£/

filed $1,200,00.0 of 6V2% debentures, due 19_69,
and 80,000 shares of cbmmoTl stock* (par $57: Price—$500
per unit/each unit to consist7 of -S300 of debentures and
20 shares of common stock." Proceeds—For-working cap¬

July

ital.

31

Office—1722 L

derwriter—Berens

Beverages

Street-M.-W.-^Washington. D. C. Un¬

Securities* Gorp.r same address.

Bottling Corp;

>

July 6 (letter of notification); 300,000 shares of common
stock (par 10 cents).
-Price—$.1 per share.
Proceeds—
For construction or purchase of additional facilities for
the manufacture, warehousing anct^istifibution of bever¬
ages.
Office—800 St". Anns Avenue^Er/onx,
derwriter—Financial
Management, Inc., 11

New

N. Y.

Un¬

Broadway,
York, N. Y. The offering is expected any day.

Volume

The Commercial and Financial Chronicle

Number 5874

190

Big Apple Supermarkets, lr.c.
June

24

filed

shares of

425,000

stock

common

Cary Chemicals, Inc.
July 28 filed $3,500,000 of
Sept. 1, 1979 and 205,000
10 cents) to be offered in

(par 10

cents).

Price—$2 per share.
Proceeds—Expansion and
working capital.
Underwriter—Simmons 6c Co., New
York. Offering—Expected any day.
•

in

each

unit

offering.
Bostic

June 19

Concrete

Co.,

Inc.

(letter of notification) $250,000 of 8% convertible
stock

(par $1)

S500 debenture and

to

in units of

offered

be

shares of class A

20

ope

stock.

common

Price—$600 per unit.

Proceeds—To pay obligations ana
working capital. Office — 1205 Oil Centre Station,
Lafayette, La. Underwriter—Syle & Co., New York, N. Y.
The offering is expected any day.

for

Broadway-Hale

(8/25)

Inc.

Stores,

will

(8/24-28)
shares of
units.

Price—$500

unit.

per

stock

common

(par

prior

the

to

Proceeds—For

public

■'

x

struct

Chemical

Casco

Corp.
July 10 (letter of notification) 300,000 shares of common
stock. Price—$1 per share. Proceeds—For marketing of
"Resistolox 20," (an anti-oxidant) and for general cor¬
porate purposes. Office—207 American Bank & Trust

purposes.
Office—401 South Broadway, Los
Underwriter—Blyth & Co., Inc., Los An¬
geles and New York.

corporate

Angeles, Calif.

12 filed
and

1979

(9/14-18)

$2,400,000 of 6V2% first mortgage bonds,
240,000 shares of common stock (par 25

$500 prin¬
shares of common stock.
Price—$500 per unit. Proceeds—To be used for placing
arnew plant in operation in Fieldsboro, N. J. Office—
Broadway and Clark Streets, Keyport, N. J. Underwriter

cents),

in units consisting of

offered

be

to

cipal amount of bonds and 50

Co., Inc., New York.

Brooks &

—P. W.

Corp.

Metals

California

shares of common stock. Price—
At par (20 cents per share). Proceeds—For construction
,o£ a pilot plant; for measuring ore; for assaying; and for
July 27 filed 2,500,000

general corporate purposes. Office—3955 South State
Salt Lake City, Utah.
Underwriter—Cromer Brokerage

City.

Co., Inc., Salt Lake

Capital Shares, Inc.
Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
To be supplied by amendment.
Proceeds—For invest¬
ment in the securities of companies engaged directly or
indirectly in the life insurance business. Office—15 Wil¬
liam Street, New York. Underwriter—Capital Sponsors,
'

Inc., New York.

■

with

the distribution of

may

Inc

Loeb

(Kuhn

stock

V

(Beil

•

17

July

11th St., N.

—

Central

Aug. 3 filed 200,000 shares of common stock
Price—S3

York—Debentures

Podesta
Inc

fCruttendsn,

Common

p«*»y

(^ HigginsoT Corp.'and P.'w

C

'

Shepard

Maritime

Ctfs.

D.

Blauner

Inc.)

Co.,

&

(Arnold

Electronics, Inc

(Amos

&

Treat

and Truman,

Inc.

Co.,

(Blyth & Co.,

,

Inc.) $10,000,000

Radio

.

(Lehman

Northwest Defense

Brothers)

(Myron

100,000 shares

Pacific Gas &

Common

to be

invited)

(Maltz,

Fidge

fCruttonden,

Coral Ridge

tAlkow

Hofman

&

Co.,

Inc.)

$1,000,000

(Myron

A. Lomasney

& Co.) $300,000

Business Equipm't Corp.—Com.

(Myron A. Lomasney &




A.

A.

$1,000,000
=

Lomasney

&

Common

Co.) $300,000

Co.) $500,000

A.

Chemical

Petrosur

Oil

$450,000

$25,000,000

Common

and Michael

& Co.

Horowitz)

$620,000

Common

West Coast Telephone Co..
125,000 shares

Notes & Common

(Beil & Hough Inc.)

September 17

$1,750,000

(Thursday)

Bondi

Georgia Power Co.__
$18,000,000

to be invited)

(Monday)

September 21
New England

Telephone & TelegrapW Co.

(Bids

to

invited)

be

(Tuesday)

September 22
(Kidder,

Common

Peabody

80,000

Co.)

&

October

(Blyth

&

1

shares

(Thursday)
Preferred

Co., Inc.)

$20,000,000

Debentures

Northern Natural Gas Co
(Blyth

Debens.

$45,000,000

Waddell & Reed, Inc

shades

& Co., Inc.)

October 8

Common

Corp.) $300,000

(Monday)

$20,000,000

E.

200.000 shares

&

Co.)

260,000 shares

Mines Ltd.—

Burnside &

Co.,

Inc.)

Common

200.000 shares

Outdoor Advertising Co
Debentures
Ryons & Co. and Wagenseller & Durst, Inc.) $850,000

Common

Sottile, Inc.
(Bear,

Stearns

& Co.)

2,000,000 shares

Speedry Chemical Products Co., Inc
(S. D. Fuller & Co.)

218,333 shares

to

Philadelphia

Common

to

be

be

Bonds

Co.„
invited)

American Telephone &
to

$25,000,000

(Wednesday)

November 17

(Bids

Debentures

„

be invited)

Electric
(Bids

Common

Corp

(Thursday)

Columbia Gas System Inc

October 14

Common

j~

Co.)

&

Dempsey-Tegeler
(Willis

M

^Debentures

Northern Natural Gas Co

(Thursday)

3

(Tuesday)

15

Corp._

Corp..

(Simmons

Common

Hogle

New West Amulet

(Lester,

Common

...

240,000 shares

Inc.)

(Offering to stockholders—to be underwritten)

Class A

Lomasney & Co.)

Securities

Empire Financial

Pacific

*

$2,400,000

stockholders—underwritten by Dean Witter & Co.)

(J.

Common
Common

Laboratories, Inc

Nord Photocopy &

Debentures

Albertson's, Inc.

R. Williston & Bean)

Bonds

Inc.)

Co., Inc

Brooks & Co.,

W.

(Bids

Williston & Beane)

& Co.,

Brooks

(Bids

$700,000

Co.)

Corp.)

September 7

shares

450,000

(P.

Co.) $600,000

Common

&

99,594

a_—Preferred

and J

Plohn

Investing

(Karen

—Common

Properties, Inc._

((Cruttenden, podesta & Co.

to

-

shares)

Inc

Podesta & Co. and J. R.
450,000 shares

&

—

Greek Voice of America, Inc

(Wednesday)

Properties,

Entron, Inc.

(Offering

.Common

Greenwald & Co.) 1,550,000

August 26
Coral

$61,000,000

Creek Precision Corp

Common

$1,200,000

Control Data Corp

Bonds

Electric Co.————-

(E-ids

Silver

Co.)

&

Lomasney

September

Minerals, Inc

W.

(Blyth & Co., Inc.)

Corp

York Research

(Caldwell Co.) $300,000

(Monday)

Inc....

West Florida Natural Gas Co

(Wednesday)

Frequency Co., Inc

Common

Industries, Inc

$300,000

Co.)

Sports Centers, Inc

(Myron

Debentures

Chemical

Co.,

September

Common
A.

General

Infrared

Malkan

Corp.

Steel

(Charles

$1,440,000

Bzura

Hooker

General Motors Acceptance Corp..——Debentures
(Morgan Stanley & Co.) $125,000,000

National

Chemical

shares

(Tuesday)

Lomasney

A.

(Myron

Wasserman<& Co.)

Broadway-Hale Stores, Inc

.Common

Inc
223,000

Inc.)

Dynex, Inc.
Edwards

Common

(August 25 Tuesday)

__■

1,057,725 shares

invited)

be

to

Bzura

(?.

$50,000,000

& Construction Corp

(Myron

50,000 shares

,

Common
Common

Co.

September 14

Lehman Brothers)

and

September 2
Acme Missiles

Common

Paddington Corp.— —
Class A Common
(Lee Higginson Corp. and H. Hentz & Co.) 150,000 shares
United Artists Corp
______J_—Common
(F. Eberstadt & Co.)
100,000 shares
Wellington

(Bids

__Debentures

—

$2,500,000

Telegraph & Telephone Co..—Common
to stockholders—no underwriting) $3,432,169

(Milton

Electric

$750,000

Brothers)

(Vermilye

(Monday)

.

tUFe3

.

Common

Bomback & Co.) $300,000

(Golkin,

Union

Corp.
—Common
;
; *
(Arnold Malkan & Co.) $600,000 .
Foto-Video Laboratories, Inc..
Common
Central

100,000 snares

Microwave Corp

Common
150,000 shares

stockholders—underwritten by Pierce, Carrison
Wulbern,

(Offering

Narda

(Thursday)

Inc.)

Co.,

&

Matronics, Inc.

$145,000

Co.___

Markets,

Minit

(Offering to

and Carl M, Loeb,

Inc.

Co.,

&

Rhoades & Co.)

$300,000

Heritage Corp. of New York

Bonds

September 1

- --- - - -

(Prescott,

Hatzler

Bros.

Jackson's

„—-.—Common

Co.

Gabriel

(Salomon

$4,440,000

Shepard & Co., Inc.)

(Prescott,

(Blyth

Bonds

Investment

Associates

Debentures

Industries, Inc..

Curtis

Common
Inc.)

Earle M. Jorgensen Co

$1,500,000

Valley Water Co

Preferred ~

f

$3,000,000

EDT)

a.m.

(Bache & Co.) $125,000

Redpathl $500,000

invited)

be

11

September 10

Common

Co

Amos C. Sudler & Co.)

August 31

Brooks & Co., InM $3,500,000

Equip. Trust

to

Oak

$400,000

Co., Inc

(Summit Securities,

Valley Sewerage Co

Common

Ry.

(Bids

Common
and

Co.

<Sc

*

Common

Inc

Community Public Service Co._—
Fredonia Pickle

500,000 shares

Co.)

&

100,000 shares

Lamont)

(Philadelphia Securities Co., Inc.)

(Friday)

(Bache & Co.)

100,000 shares

Orleans & Texas Pacific

(Bids

32

page

(Wednesday)

Petro-Chemicals,

Allied

Inc.--.

shares
—————Debentures

Parser &

(Auchincloss.

Purvis

and

Common

250,000

shares

250,000

stockholders—underwritten by G. J. Mitchell Jr. Co.

(Offering to

Oak

Service, Inc

Central Charge

Cincinnati, New

on

Class A Capital
and Jesup &

Co.

&

September 9

—Common

Corp

Great Western Life Insurance

I

Co.)

one

(Tuesday)

September 8
Peabody

$3,000,000

(Monday)

&

(par $1)

basis of

a

every

(Kidder,

(Thursday)

August 28

262,500 shares

Transportation Inc

Buckingham

stock

on

Salant & Salant, Inc

Lincoln Telephone & Telegraph Co
.Preferred
(Offering to stockholders—underwritten by Dean Witter & Co/)

shares

(Schwabacher & Co.)

common

stockholders

$714,000

Inc.)

Co.,

Co.)

&

August 27

$425,000

Engineering, Inc.—

&

Engineering

&

Research

(Purvis

Babcock Radio

made available to

Equip. Tr. Ctfs.
Debs. & Common

Inc

Kletz

(Shields

(William H.), Inc..—_ ———
Common
Co. and Schmidt, .Roberts & Parke)
August 24

be

Continued

$3,150,000

EDT)

noon

View Industries,

(Kidder, Peabody &

90,000

Electronics, Inc.

CALENDAR

ISSUE

Common

Leeds Travelwear, Inc.----(Auchincloss, Parker & Redpath)

Rarer

(par 10c).

share. Proceeds—For manufacturing and
and working capital, of subsidiaries; to

per

facilities

sales

Cohu

if Colorado Insurance Service Co.
Aug. 12 (letter of notification) 100,000 shares of common
stock (no par). Price—$2.50 per share. Proceeds—To be
added to the general funds of the company for loans

(9/1-4)

Corp.

underwriting $500,000

(No

Pro¬

receiv¬

short-term .indebtedness.
Office—
W., Washington, D. C. Underwriter—
Auchincloss, Parker & Redpath, New York.
and

620

Tool

Corp. of New

Investors Funding

amount.

/v.;:'/vl

^

three held as of the record date. Price
—To be supplied by amendment.
Proceeds—To reduce
outstanding indebtedness, for expansion, and for work¬
ing capital.
Office—San Diego, Calif. Underwriters—
Hayden, Stone & Co., and Winslow, Cohu and Stetson,
Inc., both of New York. Offering—Expected any day.

reduce

able,

86,000 shares

Inc.)

Co.,

principal

Price—At' 100%

add to working capital, buy accounts

(Michael G.

(J. W.) Inc.—
Preferred & Common
(Kenneth Kass, Securities Service and David
&

to

convertible capital de¬

filed $500,000 of 5V2%
of

•

July 20 filed 356,125 shares of
share for

bentures. *

Office—Georgetown,

land, Ore. Underwriter—R. G. Williams & Co., Inc., NewYork, N. Y.
Offering—Expected during the latter part
of August.
/

(8/24-25)

ceeds—To

exchanged.

V:'".■■■'

500,000 shares are to be offered for the account of the
and 120,000 shares for the account of certain
selling stockholders. Price:—$1 per share. Proceeds—To
finance
acquisitions and to increase working capital.
Office—161 East 42nd St., New York, N. Y. Underwriter
—None. Statement was withdrawn on Aug. 7.
Charge Service, Inc.

not

Underwriter—None.

City Discount & Loan Co.
t
July 30 (letter of notification) 120,000 shares of common
stock (no par). Price — $2.50 per share. Proceeds —For
working capital. Office—1005 Northeast Broadway, Port¬

company

Hancock

Barnes

Del.

Central American Mineral Resources, S. A.

Central

debentures

nated

Price—To be

May 27 filed 620,000 shares of common stock, of which

Sea

shares

Inc.)

Hough,

&

for
connection

only.

(Bids

Utilities Co.—

Florida Water &

or maintain the working capital of the com¬
but will be initially applied to the reduction of
short-term notes due within one year. Part of the pro¬
ceeds may also be used to retire outstanding subordi¬

pany

offered

in

the class B stock.

To increase

supplied by amendment. Agent—Dewey & Grady Inc.,
Far Hills, N. J. on a "best efforts" basis for the class A

and Drexel & Co.)

Reynolds & Co.;
115,000

being

commission

Pittsburgh & Lake Erie RR

—.Common

—

Co.;

&

not

are

as

notes, etc. Underwriter—None.

repay

Acceptance Corp.
June 29 filed $600,000 of series F 6% five-year subor¬
dinated debentures, to be offered to the present holders
of the company's subordinated debentures in exchange,
at face value, on the maturity dates of those securities
so
long as there are bonds remaining unsold in this
offering. No bonds will be reserved for this exchange
offering. Price—100% of principal amount. Proceeds—

Far Hills, N. J.

stock

B

issued

but

cable; to

~

(Thursday)

August 20
Products,

be

sale,

NEW

Air

class

of

shares

000

a

Citizens'

Bldg., Dallas, Tex. Underwriter—Pearson, Murphy & Co.,
Inc., New York. Offering—Expected any day.

Aug. 18 filed 1,500,000 shares of class A stock (par $1)
and 225,000 shares cf class B stock (60c par).
The 225,-

due

subscription by stockholders and
subscribers.
Unsubscribed shares to the
public. Price—At par ($25 per share). Proceeds—To in¬
stall a dial exchange at East Vassalboro, Maine; to con¬
the company's

Inc., both of New York.

* Cador Production Corp.,

Aug.

stock to be offered for

general

Aug. 1, 1979. Price—To be supplied by amendment. Pro¬
ceeds—For construction of new stores and for general

Inc

it China Telephone Co., South China, Maine
(letter of notification) 2,000 shares of preferred

Aug. 7

purposes, including working capital.
Under¬
writers—Lee Higginson Corp. and P. W. Brooks & Co.,

July 27 filed $10,000,000 of subordinated debentures, due

Bzura Chemical Co.,

Underwriter—Arnold

The number of shares

determined

be

31

loans. Office—1315 Dixwell Ave., Hamden, Conn.
Malkan & Co., New York.

repay

subordinated debentures due

corporate

debentures due July 1, 1969 and 10,000 shares of class A
common

(755)

$50,000,000

(Tuesday)

Telegraph Co

received)

(Bids

Bonds

to be invited)

December 1

Debens.

$250,000,000

Florida Power & Light Co
$20,000,000

(Tuesday)

Consolidated Edison Co. of New York, Inc.—Honda
(Bids

to

be Invited)

$50,000,000

,

32

The Commercial and Financial

(756)

Continued

from

Crusader Oil & Gas Corp.,

31

page

use in the premium finance
business. Office—Suite
723, University Bldg., Denver 2, Colo. Underwriter—Not

and

shares will be offered publicly by the under¬
a "best efforts" basis.
Price—To be supplied

858,387

named.

writer

Colorado

Water

Feb. 25 (letter of

Power Co.

&

and

Proceeds—For repayment of notes and
working capital. Underwriter — To be supplied by

notification) $220,000 of 6% unsecured
1,100 shares of common
units of $200 of deben¬

for

amendment.

to be offered in

(par $1)

tures

share

one

Price

stock.

of

$205

—

f

unit

per

Office—Suite 421, 901

capital.
ISherman Street, Denver, Colo,
Proceeds—For

working

Curtis Industries,

July

•jfc- Columbian Financial Development Co.
Aug. 14 filed $1,000,000 of Plans for Investment

•

Single Payment Investment Plans and $500,000 for Sys¬
tematic Investment Plans
and Systematic
Investment
Insurance.

Office—15 East

40th

Street, New

Denab

including salaries, cars, promotion, inventory,
establishment of branch offices, expenses incidental

the

Refining Corp.

permission to do business in other states,
of a contingency reserve. Office
—1420 East 18th Avenue, Denver, Colo.
Underwriter—
to

obtaining

interests in associates.

ifork.

—$2,875,000 to supply

and

Desert Inn Associates

Aug.

investment.

So.

Office—450

Main

to the pur¬
Inn, Las Vegas, Nev.,
which will leave the $7,000,000 balance to be covered
by mortgages; $200,000 for disbursements in connection
with the transaction. Office!—60 East 42nd St., New York.

com¬

Pro¬

Salt

St.,

Lake City, Utah. Underwriter—Earl J. Knudson & Co.,
-.Salt Lake City, Utah. Offering—Expected in August.

were

provements

to

struction

progress.

in

incurred

made

property

in

1959

and
be

for

with

by competitive bidding.

Probable bidders: Kidder, PeaWhite, Weld & Co. (jointly); Eastman
Dillon, Union Securities & Co.; Stone & Webster Secu¬
rities Corp. Bids—Will be received up to 11 a.m. (EDT;
on
Sept. 9, 1959 at 90 Broad Street, 19th Floor, New
York, N. Y.

ir Diablo

-

®

ble preferred stock

(no par) and 450,000 shares of class
(no par) to be offered in units of one
share of 60 cent cumulative convertible
preferred stock
and one share of class
A common stock, The no

on

stock

of

stock

is

convertible

l-for-15 basis,
class A common.
a

par

ment.

Proceeds—To

corporate purposes.
Fort

common

Lauderdale,

Fodesta

&

into

on

The

class

A

upon

payment of $3.33
Price—To be supplied

III.,

and

J.

R.

Wiliiston

Securities

Regina.

12,559 shares of

,

aclpt

io-q

I9o8.

vr

n

5

? ve P?rci^e of
N°rbute Corp.

on

Aug.

6,

stock-

one

new

fo^Q6
e?cd
^ares held.
1959. tt1"
Unsubscribed

Rights expire Aug 25
shares will be offered
to the public'

share.

Proceeds—For

S«iCeer-No°„eMinneMta AV6"



working

Of

securities,

of

common

follows: Equity General, 500,000 shares
149,478 shares of preferred stock;
and Development Corp., 500,000 shares of common stock.
The Equity Corp. is the owner of 5,343,220 shares of
Equity General common stock and proposes to offer
500,000 of such shares to the holders of Equity common
in exchange therefor, on a one-for-one basis.
Equity
General is the owner of 2,399,504 shares of Development
Corp. common and proposes to offer 500,000 of such
shares to the holders of Equity General common in
exchange therefor, on a one-for-one basis. The Board
of Directors of Equity General has authorized the issu¬
ance of a maximum of 149,478 shares of
Equity General
preferred stock in exchange for shares of preferred stock
of Development Corp., on the basis of one share of
Equity General preferred for two shares of Development
Corp. preferred. Office—103 Park Ave., New York City.
ESA

as

stock and

Mutual

May

22 filed $2,000,000 of partnership interests, to be
offered in units.
Price—$10,000 per unit. Proceeds—To
used

for

Fund, Inc.

June 29 filed 2,000,000 shares of capital stock. Price—To
be supplied by amendment.
Proceeds—For investment.

Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc., Washington,
D.

Office—1028 Connecticut Avenue, N. W., Wash¬

C.

ington, D. C.
Aug.

18 filed

Price—To

Inc., Baltimore, Md.
120,000 shares cf class A

various

acquisitions.
Office — Broad &
Streets, Philadelphia. Pa, Underwriter—None

,.

•

common

stock.

be

supplied by amendment. Proceeds—For
working capital and other general corporate purposes.
R.

—

and Alex. Brown &

Faradyne

S. Dickson & Co.,
Charlotte, N. C.,
Sons, Baltimore, Md.

Electronics

Corp., Newark, N. J.
220,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—To be used for
purchase and construction of machinery and equipment.
Underwriters—Charles Plohn & Co. and Netherlands Se¬
curities Co., Inc., both of Nev/ York.
Statement to be
June 23 filed

(amended.
•

Federated

Investors, Inc.
(letter of notification) 42,000 shares of class B
stock (par value 5c) to be sold for the account
of the issuing company, and 21,000 shares of the same

July 16

common

stock to be sold for

the account of Federated
Plans, Inc.
Price—$4.75 per share. Proceeds—For advertising, train¬
ing, printing, and working capital. Office—719 Liberty
Avenue, Pittsburgh, Pa.
Underwriter—Hecker & Co.,

Philadelphia, Pa.
;;

Offering—Expected in early Septem\

.

Fidelity Investment Corp., Phoenix, Ariz.
June 29 filed 1,799,186 shares of class A common
stock,
of which 1,700,000 shares are to be offered
publicly, and
the remaining 99,186 shares have been subscribed for
consideration

company as

an

for

services rendered

in

organizing the

incentive to management. The
company
issue to the organizers 200,000 shares of

has agreed to
class B- common stock; and

100,000 class 3 shares have
been set aside for issuance to
keep personnel other than

the organizers. Price—To
public, $3
—To be applied to pay interest due

per

share. Proceeds

on properties and to
purchase hew properties and for working capital. Under¬

writer—None,
Financial

Industrial

Price—At market.

Income

shares of

Fund, Inc.
common capital stock

Proceeds—For

investment.

Office—

950

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
ic First

Northern-Olive

Investment

Co.

Olive

of-

fnlrSW ftnh0/®//"0?!
1,00<! shares o£ common
offered for subscription bv
per

..

July 22 filed 1,000,000

Associates

-

also

Crusader Life Insurance Co..
Inc.

Price—$150

Drexelbrook

pnnHnT*

per

of common stock (par 25
share. Proceeds—For general cor¬

including product research, the pur¬
chase of new equipment, and expansion. Office — 123
Eileen Way, Syosset, L. I., N. Y. Underwriter—Myron A.'
Lomasney & Co., New York.
•

'Edwards

Steel

Corp., Miami,- Fla. (9/2)
140,000 shares of common stock (par 10
Price—$5 per share. Proceeds—To repay loans,
to
acquire property and equipment, and for working
capital. Underwriter—Charles Plohn & Co., New York.

July 8
,cents).

filed

Electronic

of record April
30, 1959, on the basis of

r

Equity General Corp.
June
29
filed
together with Development Corp. off
America, registration statements seeking
registration

Price—$5

$2fh
fW
°"tst®nding
of. common
$20). Price— To be supplied by amendment
Proceeds—To selling stockholders.
Office—145 Conkliii
Ave., Binghamton, N. Y.
Underwriter—None
^0nkim

,

rights to the MAC-145 aircraft;rand; for working capital,
includuing expenses for advertising,./ Office—-105 West'
Adams St., Chicago, III. Underwriter—Mallory Securi¬
ties, Inc., New York.

Office—243d
Underwriter—

purposes,

rtolkVar
jrocK (par

f'ock

share. Proceeds—To repay loans; to pay the $80,000 bal¬
ance
due on the company's purchase .of the complete

investment, etc.

Washington, D. C.

None.

in

ir Dooley Aircraft Corp.
Aug. 14 filed 506,250 shares of common stock, of which
375,000 shares- are to be publicly offered. Price—$2 per

W.,

N.

Street,

porate

Crowley's Milk Co., line.

t
(paF
fcowcrs

16th

cents).

progam..

($1 par), 34,460

acquired

Proceeds—For

contracts.

Canada.

of common are
stock °Ptions granted when
were

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium

ber..

writer—None.

Underwriter—Alkow & Co., Inc.,

----L.

Underwriters

Corp,

Thursday, August 20, 1959

.

Aug 17 filed 20 partnership interests in the
partnership.
Similar filings were made on behalf of other Northern-

?£eferred.and 9.05? shares

Underwriter—None.

Gas

.

Dymex, Inc.'.(9/2)
Aug. 6 filed 120,000 shares

Price—

COnverti™e Pfd. stock

common

Natural

Chestnut

Corp., Tulsa, Oklla,,

mruJ/l96IShfS °f 5%

J!

thp

Ltd.,

'

Cr?^nt

&

Dixie

St., Bladensburg, Md.
New York.

'

be

—

f$25

par

share

—

Undprwri/
St., Regina, Saskatchewan,
tJnderwliter S*aidh
Cumberland.

f^hip

$1

one

common

per

•jfcr Cree Mining Corp. Ltd.
Aprfi 17 filed 260,009 shares of
common stock.
80 cents per share.
Proceeds—For exploation

m/r

a

by amend¬
repay a mortgage and for general
Office—716 North Federal
Highway
Fla.
Underwriter
Cruttenden

Co., Chicago,
Eeane, New York.

line.

July 30 (letter of notification) 277,000 shares of common
stock (par one cent)..Price—$1 per share. Proceeds—For
expenses for developing leases _in West Virginia. Office
—115 Broadway, Suite 1400, New. York 6, N. Y. Under¬

Coral Ridge
Properties, Inc. (3/26)
July 8 filed 450,000 shares of $0.60 cumulative converti¬

preference

Laboratories,

Gilbert's Leasing & Development Corp.
11 filed $4,400,000 of 20-year 5%% convertible de¬
bentures, due July 15, 1979 and 1,056,000 shares of com¬
mon stock (par one cent)
to be offered in units consist¬
ing of $50 principal amount of debentures and 12 shares
of common stock. Price—$51.20 per unit. Proceeds—For
repayment of notes; to develop and construct shopping
centers and a
super-market under existing purchase
oontracts and for. working capital.
Name Changed —
Company formerly known as Gilbert's Properties, Inc.
Office—93-02 151st Street, Jamaica, N. Y. Underwriter—
S. D. Fuller & Co., New York.
Offering—Expected in
September..

writer—Dean Witter & Co., New York.

A

Corp.

.

Entron, Inc. (8/26)
July 13 filed 200,000 shares of common stock. Price—
$5 per share. Proceeds—For purchase of machinery and
equipment and for interim financing of coaxial cable
television transmission systems.
Office—4902 Lawrence

ik Fair Lanes,

General

•

including working cap¬
Minneapolis, Minn. Under¬

basis, without additional payment.

Equity

June

For general corporate
purposes,
Office—501 Park Ave.,

two

(See

Underwriter—None.

Underwriter

Underwriter—None.

preferred is convertible into class

issue.

130,000 shares of common
stock. Price—At par ($1 per share). Proceeds — For
equipment to be used in testing arid, developing progams, working capital, etc.
Office — Berkeley, Calif.

* Control Data Corp. (9/3-22)
Aug. 17 filed 9.9,594 shares of common stock, to be of¬
fered to common stockholders of record
Sept. 3, 1959, on
the basis of one new share for each
eight shares then
held. Price—To be
supplied by amendment.
Proceeds—

for

Registered

Aug. 6 (letter of notification)

-fa Consolidated Factors Corp.
Aug. 12 (letter of notification) 300,000 shares of common
stock (par 20 cents). Price—$1
per share. Proceeds—For
working capital. Office—115 Louisiana St., Little Rock,

common

29

below.)

York, N. Y.

A

Underwriter—

Development Corp, of America
June

^ Concert Network, Inc.
Aug. 10 (letter of notification) 125,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
To discharge outstanding debts and for working capital.

ital.

therewith.

connection

in

consummated
None.

body & Co. and

Ark.

recently consummated merger of Real Estate

the

Equities, Inc., into DCA and the plan of reorganization

con¬

determined

Office—-171 Newbury St., Boston 16, Mass.
—R. A. Holman & Co., Inc., New

necessary

Desert

company's $1.25 cumulative convertible preferred, stock
received by DCA common stockholders in connection

for extensions and im¬

Underwriter—To

the cash

Clark's

Wilbur

of

Development Corp. off America
April 30 filed 1,376,716 shares of common stock (par $1)
reserved for issuance upon conversion of shares of the

Community Public Service Co. (9/9)
Aug. 7 filed 30,000 shares of cumulative preferred stock,
series A (par $100).
Proceeds —To repay outstanding
bank loans, which

filed $3,025,000 of participations in partnership
Price—$25,000 per unit. Proceeds

7

chase

Investors

Corp.
Nov. 28 (letter of notification) 900,000 shares of
mon
stock.
Price—At par (10 cents per share).

establishment

the

None.

Offering—Indefinite.

ceeds—For

Prescott, Shepard & Co.,

Inc.

Laboratories,

first mortgage bonds du«
Bept. 1, 1968, $20,000,00 of subordinated debentures dut
Oct. 1, 1968 and 3,000,000 shares of common stock to b«
offered in units as follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock
Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
Commercial

—

purposes,

ftec. 16,1957 filed $25,000,000 of

•V

selling

July 31 filed 50,000 shares of common stock (par $2.50).
price—$10 per share.
Proceeds—For general corporate

Underwriter—None.

Commerce Oil

(8/24)

Inc.

100,000 shares of outstanding common
be supplied by amendment.
Proceeds
stockholders. Office—1130 E. 222nd St.,

Price—To

Euclid, Ohio. Underwriter
Inc., Cleveland, Ohio.

in

Shares in American Industry, of which $500,000 was for

York.

filed

17

stock.

—To

JPlans With

on

by amendment.

♦Jebentures due April 1, 1964 and
£tock

Pass Christian, Miss.

May 26 filed 1,500,000 shares of common stock, of which
641,613 shares, will be offered on a one-for-one basis to
itockholders of record May 15, 1959.
The remaining

Chronicle

Data

Processing Center, Inc.
June 29 (letter of notification) 17,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To
pay
an
eight-year lease of electronic machines, installation
charges
and
working capital.
Underwriters — Zilka,
Smither & Co., Inc. and Camp & Co., both of Portland,
Oregon. Offering—Expected any day.
•

Empire Financial Corp. (9/7)
Aug. 6 filed 250,000 shares of common

,

stock, of which
25,000 shares will be offered for the account of the issu¬

ing company, and 225,000 shares for the account of sell¬
ing stockholders. Price—To be supplied by amendment.
Proceeds—For working capital. Office—13457 Van Nuys
Blvd., Pacoima, Calif. Underwriter—Dempsey-Tegeler &

Co., St. Louis, Mo.

companies,

numbered

"second"

through "eighth."

Price—$10,084 to $10,698 per unit. Proceeds—To purchase
land in Arizona. Office—1802 North Central
nix, Ariz. Underwriter—O Malley
nix.

■

■

•

•

•

Securities

Ave., Phoe¬
Co., Phoe¬

\

•

Florida Palm-Aire
Corp.
Aug, 12 filed 1,010,000 shares of common stock (par
$1)
of which 445,000 shares are to be offered
to the public.
Price—$4 per share. Proceeds—For further development
of company.

Office—Pompano Beach, Fla. Underwriters
—Goodbody & Co. and Hardy & Co., both of New York.
Offering—Expected in September.
Florida Water & Utilities
Co., Miami, Fla. (8/20)
July 8 filed 86,000 shares of common stock, of which
65,000 shares are to be offered for public sale for the
account

of

the

company and 21,000 shares for the ac¬
selling stockholders. Price—To be supplied
by amendment. Proceeds—To be used to reduce indebt¬

count of two

edness
&

and increase working capital.
Underwriter—Beii
Hough, Inc., St. Petersburg, Fla.

ir Forming Machine Co. off America
Aug. 11 (letter of notification) 5,000 shares of common
stock (par $1). Price — $10
per share. Proceeds
For
working capital. Office—18 Hamilton St., Bound Brook
N. J. Underwriter—None.
'
—

.

Number 5874

Volume 190

The Commercial and Financial Chronicle

...

Price—
$1.50 per share. Proceeds—To complete race plant and
for general corporate

M.

N.

Office — Albuquerque,
Mee & Co., Albuquerque,

purposes.

Underwriter—Minor,

N. M.

-

Foto-Video

Laboratories, Inc. (9/1-4)
150,000 shares of class B common stock
Price — $2 per share. Proceeds — For
general corporate purposes, including the repaying of
bank loans, the purchase of new equipment, and for
working capital. Office — 36 Commerce Road, Cedar
Grove, N. J.
Underwriter — Arnold Malkan & Co.,
15 filed

July

(par 10 cents).

New York.
Foundation
June 18 filed

Price—At

Balanced

Inc.

Fund,

100,000 shares of common stock
Proceeds—For

market.

(par $1).

investment.

Office—

418 Union St.,

Nashville, Tenn. Investment Adviser—J.
C. Bradford & Co., Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
Foundation Stock Fund, Inc.
June 18 filed 100,000 shares of common stock (par $1).
Price—At market. Proceeds—For investment. Office—
418 Union

St., Nashville, Tenn. Investment Adviser—J.
Nashville, Tenn. Distributor—Capital
Planning Services, Inc.

C. Bradford & Co.,

Fredonia

Pickle

Co., Inc. (9/9)
July 29 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
production, equipment, inventory and working capital.
Office—Cushing & Union Streets, Fredonia, N. Y. Un¬
derwriter—Summit Securities, Inc., 130 William Street,
New York, N. Y.
•

Gabriel

Co.

shares

the

Fortuna Corp.

July 21 filed 1,000,000 shares of common stock.

(8/24)

(757) ' 33

400,000 will be sold for the account of the
110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shales are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share. Proceeds—For repayment of debt; purchase of
equipment and facilities and other general corporate
purposes. Office—614 Broad St., Utica, N. Y. Under¬
company;

writer—Mortimer

B. Burnside

Change—Formerly

& Co., New York. Name
Packing Corp.
Offering—

Eastern

Expected in August.
Government

2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held
(1,334,570 shares are now outstanding); (2) to holders of
common
stock (par $1.50)
of Government Employees
Life Insurance Co., on the basis of IV2 warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of V2 warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted into common stock prior to the record date,
a total of 164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
Office—Government Employees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass.
Greek Voice

of

America, Inc. (9/3)
July 9 (letter of notification) 300,000 shares of class B

—

—

•

General

York.

11

Motors

filed

plied by amendment. Proceeds—-For general corporate
purposes, including the meeting of maturing debts, the
purchase of receivables, and the reduction of short-term
borrowings. Underwriter—Morgan Stanley & Co., New
York.

June

filed

29

stock,

to

common

about Aug.

in

units,

stock and

each

an

consisting

of five

option to purchase two

subscription

1959; rights to expire on or about Sept.

28,

200,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
Proceeds—For
loan
to
the
subsidiary
(Great

ment.

Western

used

be

Building & Loan Corp.); and the balance will
to increase capital and surplus. Office—101-

Purvis

used primarily to finance electric transactor system
developed by its Stromberg division. Underwriter—Kid¬
der, Peabody & Co., New York.

General Underwriters

Inc.

are

to be offered for the account of the company

selling stockholder. Price—$1 per
inventory and improved
merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark. Offering—Expected any day.
30,000 shares for

a

Co., Chicago, 111.,
common

stock.

shares of its

on

stock

(par $1),

[Genesco
common

the basis of 0.891% shares of
each share of Formfit com¬

for

stock

has

agreed

stock for

an

to

exchange

454,318

aggregate of 509,516

of the common stock of
Formfit.]
Office—111 Seventh Avenue, North, Nash¬
ville, Tenn. Underwriter—None.
shares

approximately 84.9%

or

Co., Denver, Colo.

250,000 shares of common stock (par 10
Price—At market.
Proceeds—For investment.
Office —1825 Connecticut Avenue, Washington, D. C,
Investment
Advisor — Investment
Advisory
Service,
4

Feb.

filed

D.

Washington,

C.

Haag Drug Co., Inc., Indianapolis, End.

(8/20)

July 27 (letter of notification) 16,650 shares of common
stock (par $1).
Price—Not to exceed an aggregate of

$300,000. Proceeds—For working capital.
—City Securities Corp., Indianapolis, Ind.
Hancock

June

ible
mon

(J.

W.)

Underwriter

way,

New York 4, N. Y.

ber.

—For

general corporate purposes.

Broad

St., New York 4, N. Y.

Bros. Truck Co., Inc.
(letter of notification) 285,000 shares of conir
mon stock.
Price—At par ($1 per share). Proceeds—T*°
pay existing liabilities; for additional equipment; andl
for working capital.
Office—East Tenth Street, P. Ou
Box 68, Great Bend, Kan.
Underwriter—Birkenmayor
& Co., Denver, Colo. Offering—Expected sometime ilk

Hickerson

March

11

August.

it Highway Trailer Industries, Inc.
9 filed 1,110,052 shares of bommon stock (par 25
cents) being offered to common stockholders of record
Aug. 12, 1959, on the basis of one new share of common
stock for each two shares of common then held (with an

June

oversubscription

privilege);

discharge

will

balance

be

convert¬

preferred stock (par $2) and 100,000 shares of com¬
stock (par 10 cents). The company proposes to offer

200,000 preferred shares and 50,000 shares of the common
in units consisting of 4 shares of preferred and one share
of common. Price—$8.50 per unit. The remaining 50,000
shares of common stock are to be offered to holders of
outstanding 4% subordinated debentures at the rate of
one share for each 50c face amount of such debentures

Securities,

per

Proceeds—To be used for

—For

Building, Newark, N. J.

Ind.

Georgia International Life Insurance Co.
30 filed 1,665,000 shares of common stock

Inc.,

Atlanta,

Ga.,

and

The Johnson

Lane,

Space

Corp., Atlanta, Ga.
Gold

Medal

(par one

cent), and 50,000 common stock purchase warrants. Of




June 9 filed

These

The statement became

Industries,

Inc.

300,000 outstanding shares of common stock.
are part of the 672,990 shares (53.43%)

shares

by Seaboard Allied Milling Corp. Seaboard plans
to offer 100,000 shares for sale to the business associates

held

Industries at $6 per share.
In addition, Seaboard may wish to sell publicly the re¬
maining 200,000 shares, or a portion thereof, on the
American Stock Exchange, or otherwise, at prices cur¬

and

Packing Corp.

June 18 filed 572,500 shares of common stock

N. J.

Underwriter—None.

Hathaway

(par

$2.50). Price—$5 per share. Proceeds—To increase capi¬
tal and surplus. Underwriters—The Robinson-Humphrey
Co.,

West Orange,
17.

unit; of non-voting common, $500 per unit. Proceeds
working capital. Office—Nelson Road, Fort Wayne,

writer— Sandkuhl

June

at 3:30

expire

Hazel-

production at the Edgerton,
short-term bank loan; and the

employees of Hathaway

a

for

used

general

corporate

purposes.

Allen & Co., both

Agents—Van Alstyne^ Noel & Co. and
of New York.

it Hoerner Boxes, Inc.
19 filed 236,500 shares of common

Aug.

stock, of which

199,000 shares will be publicly offered. Price—To be
supplied by amendment. Proceeds—-To finance an equity
investment, and to finance a loan to Waldorf-Hoerner
Paper Products Co., which will be 50% owned by the
issuing company.

Office—Keokuk, Iowa. Underwriters—

Goldman, Sachs & Co.

Inc.
(8/26)
notification) 50,000 shares of common,
stock (par 25 cents). Price—$6 per share. Proceeds—Toretire a loan from Hillside National Bank and for gen¬
eral corporate purposes.
Office — 5 Evans Terminal,,
Hillside, N. J. Underwriter—Myron A. Lomasney & Co.,
New York, N. Y.
•

Laboratories,

Hofman

12 (letter of

June

Ltd.
stock, to be of¬
fered for subscription by stockholders of record April
30, 1959, on tfre basis of one new share for each fiv«>
shares then held. Rights to expire on or about July 30.
Price—$40 per share. Proceeds—To be applied to repay¬
ment of bank loans and for company's capital expendi¬
ture program and investment. Office—Honolulu, Hawaii
•

Honolulu

Construction & Draying Co.,

16 filed 25,000 shares of common

June

Underwriter—None.

The

effective*

became

statement

July 31.

of Israel
39,000 shares of common stock (par $5)
of 6% subordinated debentures, due Aug.
I
1974. Price—$1,500 per unit, consisting of 30 common,
shares at $10 per share and $1,200 of debentures at par.
Proceeds—To purchase, complete, and furnish various
properties and for general corporate purposes. Office—
II South La Salle St., Chicago, 111. Underwriter—None.
filed

13

July

and $1,560,000

Houston

(8/19)

Lighting & Power Co.

23 filed $25,000,000 of first mortgage
1989. Proceeds—To repay the major portion

July

Salomon Brothers &

St., Newark, N. J. and Buena Vista, Va. Under¬
&
Co., Inc., Raymond Commerce

will

and production requirements of the

for inventory

Brothers,

man

rights

p.m. (EDST) on Aug. 28. Price—$4 per share. Proceeds—
To be used for new equipment and plant improvement;

it Hardware Wholesalers, Irtc.
Aug. 7 (letter of notification.) 2,380 shares of common
stock (par $50) to be offered in units of 20 shares and
500 shares of non-voting common stock (par $50) to be
offered in units of 10 shares.-Price—Of common. $1,000

Georgia-Bonded Fibers, Inc.

Office—12 State St.,

Albany, N. Y. Underwriter—Golkin, Bomback & Co., 25

effective Aug.

July 10 (letter of notification) 100,000 shares of class A
common stock (par 10 cents).
Price—$3 per share. Pro¬
ceeds—For general corporate purposes. Office—15 Nutt-

Offering—Expected in Septem■ v/'::;. A■;■;

* Heritage Corp. of New York (9/10)
Aug. 10 (letter Of notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$3 per share. Proceeds

64, Calif. Underwriters—Lester, Ryons & Co., Los An¬
geles, Calif, and Wilson, Johnson & Higgins, San Fran¬
cisco, Calif.

—

28,800

share.

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
I£or development oi oil and gas properties. Office—703
American Bank Building, Portland 5, Ore. Underwriter
—D. Earle Hensley Co., Inc., 4444 California Avenue^
Seattle, Wash.
r

working capital and general corporate purposes. Under¬
writers—Kenneth Kass, Nassau Securities Service and
David Barnes & Co., Inc., all of New York; and Palin

(par $1). Price

per

>:%:■A:.-;/;; ./;■

20,000 shares of common
$12 per share. Proceeds — For
working capital. Office—2233 Federal Ave., Los Angeles

stock

Price—$5

Hotel Corp.

(8/20)

Inc.

200,000 shares of 6% cumulative

25 filed

surrendered for cancellation.

Genisco, Inc.
July 29 (letter of notification)

Manage¬

Underwriter—Investment
Washington, D. C.

ment Associates, Inc.,

•

common

to be offered to the common shareholders of The Form-

Genesco

&

St., Oklahoma City, Okla. Under¬
Mitchell, Jr. Co., Washington, D. C.; and

J.

Growth Fund of America, Inc.

share. Proceeds—For furniture

Genesco, Inc.
July 29 filed 535,000 shares of

Second

W.

cents).

April 6 (letter of notification) 225,000 shares of com¬
mon capital stock
(par 25 cents).
Of the total, 195,000
shares

N.

111

(par$l).

For payment of past due accounts and loans and

Wis. plant; to

and op¬
additional shares of outstanding

by holders of the 1,500,000 outstanding common shares
at the rate of one unit for each 15 shares held on or

be

mon

(8/28)

additional shares, the units to be offered for

writers—G.

fit

offered

be

shares of

Insurance Co.

500,000 shares of common stock

tions to purchase 200,000

eight shares of stock held of record Aug. 7, 1959;
rights to expire Aug. 24, 1959. Price—At par. Proceeds—
To be added to the general funds of the company and

and

Life

28, 1959. The options evidence the right to purchase the

General Time Corp.
July 8 filed $6,197,900 of convertible subordinated deben¬
tures due 1979 being offered for subscription by common
stockholders at the rate of $100 of debentures for each

shares of
Proceeds—
general
working capital.
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
stock

common

ton, Pa., plant and increased

Great Western

Acceptance Corp. (9/2)
$125,000,000 of 21-year debentures, due
1980.
Application will be made to list the debentures
on
the New York Stock Exchange.
Price—To be sup¬
Aug.

Heliogen Products, Inc.
22, 1958 (letter of notification)

Oct.

Nov. 13 filed

common

Statement effective April 24.

it Health Havens, Inc.
(letter of notification) 25,000 shares of common
stock (par $1). Price—$10
per share. Proceeds—To pur¬
chase land, a building, equipment and for working cap¬
ital. Office—73 Willett
Ave., East Providence, R. I. Un¬
Aug. 11

derwriter—None.

capital stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For production and publicity of Greek language
shares for each $1,000 of deben-,. radio fand television programs and manufacture; dis¬
tures. Price—100% of principal amount of the deben¬
tribution and promotion of Greek language records. Of¬
tures. Interest Rate—To be determined by amendment.
fice
401 Broadway, New York, N. Y. Underwriter —
Proceeds—For capital investment.
Office—1148 Euclid
Karen Securities Corp., 95 Broad Street, New York,
Avenue, Cleveland, Ohio. Underwriters—Prescott, ShepN. Y. Statement to be amended.
ard & Co., Inc., Cleveland, and Carl M. Loeb, Rhoadea
• Great American
Publications, Inc.
& Co., New York.
Aug. 11 filed 260,000 shares of common stock (par 10
General Merchandising Corp., Memphis, Tenn.
cents) of which 195,000 shares are to be publicly of¬
Feb. 18 filed 250,000 shares of class "A" common stock
fered on a best effects basis.
Price—At market.
Pro¬
(par one cent). Price—$10 per share. Proceeds—For
ceeds
For working capital.
Office — New York.
working capital and general corporate purposes. Under¬
Underwriter—Mortimer B. Burnside & Co., Inc., New
writer— Union
Securities
Investment
Co., Memphis,
Tenn.

at the time of such sales.
Proceeds—To selling
stockholder, Seaboard Allied Milling Corp. Office—
Hathaway Street, Syracuse, N. Y. Underwriter—None.
Statement effective July 27.

Employees Variable Annuity Life

Insurance Co.

July 8 filed $2,500,000 of subordinated sinking fund
debentures, due June 30, 1974, with warrants for the

purchase of 20

rent

_

^

bonds due
of the com-

panv's outstanding short-term bank loans, which were
incurred to finance the company's construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman

Eastman Dillon, Union Securities & Co. ana
Hutzler (jointly); Blyth & Co., Inc.;,
Lazard Freres & Co. and The First Boston Corp. (]oint-

Peabody & Co. and Equitable Securities
(jointly). Bids—Expected to be received up to

Kidder,

ly);'

Corp.
noon

(EDT) on Aug, 19.
C

I

Inc.

(8/28)

'•

'

' '

'

stock (par $1J.
Price—$2.50 per share. Proceeds—To further the corpo¬
rate purposes and in the preparation of the concen ra e
and enfranchising ef bottlers, the local and national Pro""
June

29 filed

of its beverages, and where
to such bottlers, etc. Off c
Equitable Bldg., Denver Colo. Underwriters-Pur¬
& Co. and Amos C. Sudler & Co., both of Denver.

motion

and

necessary

704

vis

600,000 shares of common

advertising

to make loans

Colo.

Continued

on

page

<$*

34

Continued

from

pand existing warehouse facilities and to construct new

33

page

the balance to be added to
capital. Office—10650 South Alameda St., Los

warehouse
Ideal

July

Co.

Cement

filed

31

shares

working

capital

of

shares

675,000

for all

exchanged

be

to

are

These

stock.

than

less

(but not

(par $1) of the Volunteer
Portland Cement Co., in the ratio of 3% shares of Ideal
of the common stock

80%)

each

for

stock

share

Volunteer

of

stock.

Office

—

500

Building, 321 17th Street, Denver,

Denver National Bank

Colorado.

Independent Telephone Corp.
June 29 filed 13,080

shares of 5% cumulative convertible
preferred stock, series A ($10 par), and 806,793 shares
of common stock, together with warrants for the pur¬
chase
of
50,000
common
shares. - According to the
prospectus, 800,000 common shares are being offered to
nine payees of non-assignable convertible notes out¬
standing in the amount of $500,000 for conversion of
such
of

into

notes

$6.25

8.175

The

shares

common

shares

common

share.

per

are

at

a
conversion price
preferred shares and
being offered in exchange for

outstanding 327 shares of common stock of Farmers
Union Telephone Co., a New Jersey corporation, on the
basis of 40 shares of preferred and 25 shares of common
for each share
of common capital
stock of Farmers
Union
until
Aug. 31, 1959.
The issuing company is
also offering 96,604 common shares to holders of its
outstanding stock of record June 30, 1959, for subscrip¬
tion at $6.25 per share on the basis of one new share
for each two shares then

held; rights to expire Aug. 31.
For working capital. Office — 25 South St.,
Dryden, N. Y. Underwriter—None.
—

Industrial
June

1

convertible

550,000

Leasing Corp.

(letter

of

6%

notification)

$200,000 subordinated
($1,000 denomination) and

debentures

subordinated

denomination).

convertible

Price—100%

ceeds—For working capital.
nue, Portland 4,
land, Ore.

Ore.

6%

debentures

($500

of principal amount.

Pro¬

Office^—522 S. W. 5th Ave¬

Underwriter—May & Co., Port¬

Industrial Plywood Co., Inc.
June 25 filed 60,000 shares of 6%

cumulative preferred

stock

Aug.

($10

par—convertible

stock

common

purchase

until

warrants.

31,

Each

1969),

share

with

of

pre¬

ferred will have

one "A" and one "B" warrant
attached,
entitling the holder to purchase one share of common
(for each two "A" warrants) at $12 per share, expiring
June 30, 1961; and for each two "B" warrants held at
$14 per share, expiring June 30, 1961. Price —
$10 per

share.

Proceeds—Toward

reduction

of

short-term

bank

loans; to liquidate long-term debt; and the balance for
additional working capital.
Underwriters
Standard
—

Securities Corp., Irving Weis & Co., and J. A. Winston
& Co., Inc., all of New
York; Bruno-Lenchner Inc., Pitts¬

burgh, Pa.; Netherlands Securities Co., Inc., New York;
and Plymouth Bond & Share
Corp., Miami, Fla. Of¬
fering—Expected any day.
Infrared

Industries, Inc.

July 29 filed

100,000 shares of common stock. Price—
To be supplied by amendment. Proceeds—For
expansion
and
working capital.

Office—Waltham,

writer—Lehman

holders. Underwriter—None.

Kilroy
June

Brothers,

New

Mass.

Under¬

York.

Bank, Washington, D. C.
Dec. 29 filed $5,000,000 of notes
(series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year
4% pel
unit; and series D, $3,500,000, 6-year, 5% per
unit). Prloi
—100% of principal amount.
Proceeds
For workini
capital. Underwriter—Johnston, Lemon &
Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
•
International Tuna Corp.
April 3 (letter of notification)

tember.

'

it Investment Trust
Aug.

14

filed

500

Trust. Price
the

cash

Lee

June

1L

$2,60(1

Bldg.
Certificates in the
certificate. Proceeds—To
supply

per

to

Trust

purchase

Washingt°n, D. C.,

building thereon.

the

land

Office—Washington,

Investors
Feb. 17 filed

1809-15

D.

C.

H

office

an

Blum Securities

Funding Corp. of New York (8/20)
$500,000 of 10%

subordinated debenture#

' 1;t0. he, offered ^ units of $1,000. Priot
10°f. of Principal amount. Proceeds—For invest25?
£
—
Fifth Ave., New York,' N. Y. Under¬
writer—None.
At

uww

of

other

ac¬

properties;

also

for

other

corporate

Under*Grft
°ffice~^95°
Broad St' Re8ina>
Underwriter
Laird &

Sask.,
Rumball, Regina, Sask.

—

Jackson's

Minit-Markets,

July 30 filed 223,OOO shares

of

Inc.

Can.
Can.

(8/31)

common

stock

(par $1)

ru

held; rights to expire on Sept. 15.
supplied by amendment.
Proceeds—For
Purposes,

possibly
Beach

the

of

Price—To
general

including the equipping

construction

Boulevard,

one

of

new

Jacksonville,

be

corpo¬

and stocking and
stores.
Office
5165

Fla.

Underwriter

Pierce, Carrison, Wulbern, Inc.,
Jacksonville, Fla.
Jorgensen (Earle M.) Co. (9 10)
Aug. 10 filed 150,000 shares of common stock

—

(par $1).
Price—To be supplied by amendment.
Proceeds—To ex¬




share

new

for

share

each

held

during

period ending June 25, 1959. Price—$5 per share to
stockholders; $6 per share to the public. Proceeds—To
capital and surplus.
Office — 1706 Centenary

increase

Underwriter—None.

Boulevard, Shreveport, La.

•
Leeds Travelwear, Inc.
(8/20)
July 21 filed 262,500 shares of class A common stock
(par $1). Price—$5.75 per share. Proceeds—To reduce
indebtedness and for general corporate purposes. Office
—New York City.
Underwriter—Auchincloss, Parker &
Redpath, New York.
(

Lenahan

July

157,494

initially

share

new

Aluminum

filed

23

offered

for

Corp.

of

two

shares

stock, to
basis of

common

stockholders

to

each

Window

shares

the

on

owned

as

the

of

be
one

record

Unsubscribed shares will

date.

be offered to the public.
share. Proceeds—For inventory and for
working capital. Office—Jacksonville, Fla. Underwriter
—Plymouth Bond & Share Corp., Miami, Fla.
per

Lincoln

Thursday, August 20, 1659

.

and

will

Gallie)

will

Canaveral

area.

be

and

be

further acquisitions, and for use as
Office—20 S. E. 3rd Ave., Miami. Fla.

for

working capital.

Underwriter—Blair &

Co., Inc., New York.
Expected in September.
•

Matronlcs,

June

29

filed

Price—$3.75

Offering—

Inc.
(9/10)
200,000 shares of capital stock

per

test

(par

Proceeds—For sales promotion,
equipment, research and development,

demonstrators

for special systems,
receivables,
tories, prepayment of notes and other purposes.

—558

10(1).

share.

inven¬
Office

Main

St., Westbury, L. I., N. Y.
Underwriters—
Brothers; Kerbs, Haney & Co.; Mid-Town
Securities Corp.; and Cortland
Investing Corp., all of
Vermilye

New

York.

May

200,000 shares of
Price—$3.75 per share.

cents).

corporate
N.

Industries, Inc.

filed

14

Office

purposes.

—

42

common

stock

(par 20

Proceeds—For

general
Broadway, New York,

Y.

Underwriter—Amos Treat & Co., Inc., New York.
Offering—Expected in September.
Mercantile Acceptance Corp. of California
May 15 (letter of notification) $80,000 of 12-year 5%%
capital debentures. Price—At face amount. Proceeds—
For

working capital. Office — 333 Montgomery Street,
Francisco, Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif.

San

Metallurgical Processing Corp., Westbury, H. Y.
Aug. 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
retire

debts;

metals

and

acquire new equipment for processing
its overall capacity; to move its

to

to

facilities and

expand

new

equipment into

a new

building and for

further development and expansion. Underwriter—Neth¬

erlands Securities

Co., Inc., New York, N. Y.
Expected sometime in September.
•

Mecronaire

Electro

filed 200,000

Medical

Products

Offering—

Corp.

Telephone & Telegraph Co. (8/27)
Aug. 6 filed 30,000 shares of 5% convertible preferred

June' 1

stock

($100 par), to be offered to stockholders of record
Aug. 27, 1959, on the basis of one new preferred share

stock, to be offered for public sale in units of 100 shares

for each nine

includes

Sept.

on

14. To permit the
stockholders

common

shares.

Proceeds—To
tion

shares then held; rights to expire

common

common

has

reduce

offering

waived

Price—To
bank

on

basis

such

one

his

rights as to 5,004
supplied by amendment.

be

loans

Office—Lincoln,
Witter & Co., New York.

incurred

Neb.

proram.

for

construc¬

Underwriter—Dean

50,000
of

one-year

shares (par 10 cents) and
for the purchase of common

common

warrants

stock and 25

warrants.

The registration also
three-year warrants, exer¬
$3, of which 150,000 have been issued to cer¬
tain .stockholders and employees.
Price—$275 per unit.
Proceeds—To discharge indebtedness; for expansion of
sales, efforts; and for working capital. Office—79 Madi¬
son Ave., New York.
Underwriter — General Investing
Corp., New York. Statement withdrawn Aug. 11.
common

additional 200,000

an

cisable at

it Long Mile Rubber Co., Dallas, Texas
18 filed $1,500,000 of sinking fund "subordinated
debentures, due Sept. 1, 1974, with warrants for the

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with
250,000 shares of

purchase of 60,000 shares of

stock (par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the company's restricted stock option
plan. Price—$10,500 per unit.
Proceeds—To purchase

Aug.

also

stock,

be

to

common

Price

For

—

debentures

of principal amount; and for

supplied

stock.

The

state¬

225,000 shares of outstanding common
offered for the account of certain selling

covers

stockholders.

100%

by amendment.
bank

and

to

with

warrants,
stock, to be

common

Proceeds—To

be

used

to

pay

$700,000 of other money
obligations. Underwriters.—Scherck, Richter-& Co., St.
Louis, Mo.; Burnham & Co., New York; and S. D. Lunt
& Co., Buffalo, N. Y.
repay

July 6 filed 800,000 shares of common stock, to be of¬
initially at $25 per share throug'h Loomis, Sayles &
Co., Inc., to clients, officers, directors and employees of

fered

latter.

holders

The

shares

also

are

to

be

offered

to

share¬

of

Loomis-Sayles Mutual Fund, Inc., of record
on or about
Aug. 18, 1959. After Sept. 1, 1959, the offer¬
ing price will be net asset value. After about Oct. 18,
1959, shares will be offered only to shareholders of
Loomis, Sayles & Co., Inc., and its affiliated companies.
investment.

it Lynch Carrier Systems, Inc.
Aug. 13 filed 45,000 shares of capital stock in order to
satisfy the privileges of warrant holders. None of the
shares
San

common

machinery, equipment and other fixed assets, for operat¬
ing

expenses,

is to be publicly offered. Office—695
Francisco, Calif. Underwriter—None.

Bryant St.,

and

the

Office—4061 Transport

remainder for working capital.
St., Palo Alto, Calif/Underwriter

—None.
Mid-America

Minerals, Inc.
$921,852 of Working Interests and Over¬
riding Royalty Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest being producing interests and some nonproducing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
June

Loomis-Sayles Fund of Canada Ltd.

fil^d

22

ment in oil and gas lands.
Bldg., Oklahoma City, Okla.

Office—Mid-America Bank

Underwriter—None.

it Mile High Hockey, Inc.
Aug. 6 (letter of notification) 220,000 shares of common
stock
(par 50 cents). Price—$1 per share. Proceeds—
For advertising, salaries, expense of offer, working cap¬
ital, etc. Office—222 Majestic Bldg., Denver, Colo. Un¬
derwriter—Copley & Co., Denver, Colo.
•

Credit Corp.

Mobile

Lytton Financial Corp. (3/31-9/4)
Aug. 3 filed 110,000 shares of capital stock (par $1).
Price-—To
be
supplied by amendment.
Proceeds—To
enable the wholly-owned Lytton
Savings and Loan As¬

June 8 filed

sociation to increase its lending and investment
capacity,
with the balance to be retained
by the issuing company
and added to working capital. Office—7755 Sunset

sales contracts and other like evidences of indebtedness.

Blvd.,

Hollywood,

Calif.
Underwriter—William
Co., Los Angeles, Calif.
M.

&

S.

Oils

R.

Staats

&

Ltd.

May 11 filed 390,000 shares of common stock. Price—60
cents per share.
Proceeds — For exploration, develop¬
ment and acquisitions. Office—5 Cobbold
Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land
•

Securities

Magnuson

June

26

filed

Price—To

Se offlredu tc? stockholders of record as of Aug. 28^
' uni?G .baJLls of one new share for each two shares
then

rate

basis

balance

Medearis

stock, to be of¬
subscription by holders of outstanding stock on

.

added to the company's general
available, together with funds re¬
ceived from payments on lot sales, principally for the
development of the Palm Shores properties (at Eau

Co.

the

Irando Oil

&
Exploration, Ltd.
April 24 filed 225,000 shares of
common stock. Price—90
cents per share,
Proceeds—To defray the costs of
explo¬
ration and
development of properties and for the
quisition

Insurance

filed 200,000 shares of common

11

fered for
the

Life

Under-

Service, Inc., both

^ ^ ' an^ Swesnick &

ing

at

and construct

& Co. and Investors

Corp

National

Proceeds—For
for the Federal Bar

Beneficial

necessary

?Jij.

properties. Office—2306 Bank of the South¬
Bldg., Houston Texas. Underwriter—None.

west

.

lands in the Melbourne-Cape

covering
The

funds

production

1960 Co.

oil and gas

the

175,000 shares of clasi
(par 50 cents).
Price —$1 per share
Proceeds—For equipment and
working capital. Offic«
—Pascagoula, Miss Underwriter—Gates, Carter & Co
Gulfport, Miss. Offering—Expected first week in
Sep¬
stock

S.)

$3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts ot
$25,000 or more. Proceeds—Acquisition of undeveloped

—

common

(W.

effective June 5.

Statement

filed

off notes to

International

A

8

ment

(8/25)

and

Kaiser Aluminum & Chemical Corp.
May 11 filed 64,028 shares of 4%% cumulative convert¬
ible (1959 series) preference stock (par $100) and 128,051 shares of common stock (par 33l/z cents) issued in
exchange for the outstanding stock of Mexico Refrac¬
tories Co. through merger.
Proceeds—To selling stock¬

Price—-$4

•

facilities,

Angeles, Calif. Underwriter—Blyth & Co., Inc., Los An¬
geles, Calif.

13,080

the

Proceeds

Financial Chronicle

The Commercial and

(758)

Ltd., Regina, Saskatchewan, Canada.

Properties,
500,000

of

class

A

common

stock.

be

supplied by amendment. Proceeds—$443,071 is to be expended
during the period ending Aug. 31,
1960, for mortgage payments and releases; $465,000 will
be paid on notes acquired
by members of the Magnuson
family in the transfers of subsidiaries and properties to

15,000 shares of common stock to be offered
Michigan and Pennsylvania. Price—$10 per
Proqeeds—To provide additional working capital
the purchase
of vendors' interests in conditional

sale

in

share.
for

Office—11746
writer—None.
•

Appleton Avenue, Detroit, Mich.
Statement effective Aug. 3.

Monarch Marking System Co.

Under¬

(9/14-18)

Augr, 12 filed 100,000 shares of common stock (no par),
of which 50,000 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
selling stockholders. Price—To be supplied by amend¬
ment. Proceeds—For working capital.
Office—Dayton,
Underwriter—McDonald & Co., Cleveland, Ohio.

Ohio".
•

Inc.

shares

for

Microwave

Narda

June'

Corp.

(8/24-2S)

filed

16

50,000 shares of common stock (par, 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
The statement also includes an additional 10,000
share.
shares

of

the company; $350,000 will be used to
pay off an exist¬
ing loan secured by a-mortgage on the Florida Shores

reserved for issuance to key
options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank

properties in Edgewater, Fla., and an assignment of a lot
contract receivable; about
$150,000 for the construction

York.

of the first four stories of the

building' in Miami

(the

company's proposed office

balance

estimated

at

$150,000
be secured by a
mortgage on the building), and
$93,200 to close certain options and purchase contracts
will

stock

common

employees

pursuant

to

loans. Underwriter—Milton D. Blauner &

April 20
mon

For

Corp.

(letter of notification) 150,000 snares of com¬
Price—At par ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad-

stock.
new

Co., Inc., New
„

National Citrus

Volume

190

dress—P.

Number

O.

5874

.

.

.

Box

1658, Lakeland, Fla.
Underwriter—
Co., inc., Detroit, Mich. Offering—Ex¬
pected in September. Statement to be amended.

Northeast Furniture Center, Inc.
Aug. 4 (letter of notification) 600 shares of class B com¬

F. Campeau

R.

stock (no par). Price—$500 per share. Proceeds—
To purchase furniture, fixtures and equipment and for
other working capital. Office—751 Summa Ave., West-

mon

+ National Cleveland Corp., Cleveland, OliioV
Aug. 18 filed $600,000 of convertible subordinated de¬
bentures, due Sept. 1, 1971.
Price—To be supplied by
amendment.

loans and for additional working capital. Under¬
writers—Merrill, Turben & Co., Inc., Cleveland, Ohio
Loewi

&

National

Aug. 4

Co.

Inc., Milwaukee, Wis.

Industrial Minerals

(letter of notification)

.

common

•

■

•

National Sports Centers,

July 2 filed $1,000,000 of 6%
tures cumulative due

stock

purchase

Inc.

of

common

principal

Proceeds—To be used for completion of and/or
payment of certain bowling alley and other properties,
funds

available

the company's general

to

for

development of properties and the
acquisition and development of additional bowling prop¬

erties. Office—55

Broadway, New York.
Underwriter—
General Investing Corp., New York Offering—Expected
in September.
National Telepix, Inc.
Aug. 4 (letter of notification) 100,000 shares of common
stock (par one cent). Price — $3 per share. Proceeds —
For acquisition of film
properties; for prints equipment,
machinery and supplies and working capital. Office—
545
5th
Avenue, New York,
N.
Y.
Underwriter—
Chauncey, Walden, Harris & Freed, Inc., 580 5th Avenue,
New York, N. Y.

Nationwide

Main St., Mantua,
Co., New York, N. Y.
•

amount.

and the balance will be added

'

N.

Un¬

1,000,000 shares will be offered for the account of the
company; 100,000 shares will be offered for the account
of a selling stockholder
(Albert Mining Corp. Ltd.);
and the remaining 165,000 will be paid as additional
compensation to brokers and dealers. Price—Related to

of

market

price
repay

on

the

American

•

Stock

bank loans, for develop¬

properties, and for general corporate purposes.
Underwriter

E.

Burnside

Aug.

struction

(9/7-11)
July 30 filed 200,000 shares of outstanding capital stock
(par $1). Price—To be related to the current market
price on the Canadian Stock Exchange at the time of the
offering. Closing price Aug. 7 was 84 cents. Proceeds—
To selling stockholder. Office—244 Bay Street, Toronto,
Underwriter—Willis

Power

&

Light

5,

&

Co.,

&

Underwriter—Ladenburg, Thalmann

Co., New York.

be

supplied by amendment.

Proceeds

To repay bank

—

loans, with the balance, if any, to be added to working
capital. Office—630 Fifth Avenue, New York. Under¬
writers—Lee Higginson Corp. and H. Hentz & Co., both

underwriting

of

New

For

discounts

investment.

and

commissions.

Underwriter—Carl

Proceeds

M.

Loeb,
& Co., New York. Statement effective Aug. 11.
•

Nord

—

be

derwriter—None.

and

New

Inc.
(par 10

filed 150,000 shares of comrqcn stock
Price—To be supplied by amendment. Proceeds
working capital, advertising and sales expenses,

29

—For

additional
York.

machinery.

Office—521

Park

Avenue,

Underwriter—American Diversified Mutual

Securities Co.,

Washington, D. C.




680,000 shares of Pan-Alaska it now owns.

SJ*

Underwriter

stock not subscribed for by holders of Marine
Drilling will be publicly offered by Crerie Co., Houston,
Texas and Clark, Landstreet & Kirkpatrick, Inc., Nash¬
—Any

'

ville, Tenn., at a price of 20 cents a share.
Participating Annuity Life Insurance Co.
$2,000,000 of variable annuity policies. Pro¬
ceeds
For investment.
Office — Hathcock Building,

June 4 filed
—

Fayetteville, Ark.
Peckman

North American Cigarette Manufacturers,

capital stock to

pursuant to options held by Marine Drilling,
will, in turn, offer its stockholders

Latter company

rights to purchase two shares of Pan-Alaska common, at
20 cents a share, for each share of Marine Drilling stock.
Marine Drilling also plans to sell 250,000 shares of the

filed

North American Acceptance Corp.
April 29 (letter of notification) $300,000 of 6% 10-year
subordinated debentures to be offered for subscription
by stockholders in denominations of $100. $500 and
$1,000 each. Rights were to have expired July 3D 1959.
Price—At par. Proceeds—For working capital. Office—
Suite 487, 795 Peachtree Street, N. E. Atlanta, Ga. Un¬

cents).

issued

Inc.

100,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—To reduce bank
debts and for general corporate purposes. Office—New
Hyde Park, L. I., New York. Underwriter—Myron A.
Lomasney & Co., New York.

July

York

Aug, 7 filed 2,612,480 shares of common

Photocopy & Business Equipment Corp.

(8/26)

July 21

New

Pan-Alaska Corp.

Rhoades

Underwriter—None.

Plan Fund,

Inc., Pasadena,

Calit.

filed 20,000 shares of common stock (par $1)
Price—At market.
Proceeds—For investment.
Under¬
writer—Investors Investments Corp., Pasadena, Calif. .
May

19

Oil

(9/15)
July 15 filed 100,000 shares of common stock (par 10
cents) and 100,000 shares of 6% cumulative convertible
Petrosur

Corp.

preferred stock (par $5).

September.
Fire & Casualty Co.,

Mesa, Ariz.

400,000 shares of common stock to be
subscription by holders of stock purchase

filed

for

rights acquired in connection with

life insurance policies

Dependable Life Insurance Co. and to certain
agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.
issued by

Underwriter—None.

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock (par 250).
Price
$1.50 per share. Proceeds — For general corpo¬

Price—$6.20 per unit, each unit

Office—1202 Myrtle St., Erie, Pa. Under¬
Cravin & Co., New York.
Offering-

rate purposes.

writer—John G.

Expected in September.
ic Radio Frequency Company, Inc. (9/2)
Aug. 12 (letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—For
general corporate purposes.
Office — Medfield, Mass.
Underwriter—Myron A. Lomasney & Co., New York.
Raub Electronics

Research Corp.

of common stock of which
offered to the public. Price—$8.50
per share.
Proceeds—For general corporate purposes.
Office—1029 Vermont Avenue, N. W., Washington, D. C.
Underwriter—Weil & Co., Washington, "D. C. The offer¬
ing is expected later this month.'
15 filed 165,000 shares

150,000 shares will be

Realsite,

Inc.

July 28 filed 200,000

$3
and for
Under-*

shares of class A stock. Priced—

share. Proceeds—To pay off mortgages
working capital.
Office—Jamaica, L. I., N. Y.
writer—Robert L. Ferman & Co., Miami, Fla.
per

Development Corp.
stock. Price
—$2 per unit of 100 shares. Proceeds—To be used in the
company's oil exploration program for the purchase of
oil exploration and drilling equipment, supplies and ma¬
terials; to contract with U. S. geophysical contractors for
technical services; and to pay its pro rata shares of the
dollar exploration expenses under its agreement with
three other companies for joint exploration of concessionsTield in the Philippines.
Office—410 Rosario St.,
Binondo, Manila, Philippines. Underwriter — John G.
Cravin & Co., Inc., New York.
Offering—Expected in
Republic Resources &

June 29 filed 1,250,000

-

unit shares of capital

September.

Alberta, Canada
1,998,716 shares of common stock
(par $1). Of this stock, 1,174,716 shares are to be sold
on
behalf of the company and 824,000 shares for the
account of certain selling stockholders.
The company
proposes to offer the 1,174,716 shares for subscription
by its shareholders at the rate of one new share for
Richwell

(8/24-28)
July 31 filed 150,000 shares of class A common stock (par
$1), of which 110,000 shares are to be offered for the
account of the company and 40,000 shares are to be of¬
fered for the account of a selling stockholder. Price—To

Inc.,

31

offered

Co.

York Capital Fund of Canada, Ltd.
(9/2)
June 30 filed 1,000,000 shares of common stock (par 34
cents). Price—At net asset value (as of Sept. 2), plus

•

March

(9/7-11)

Paddington Corp.

York.

(par 10 cents).

—

1959; rights to expire on Aug. 27, 1959.
principal amount. Proceeds—For con¬

program.

(letter of notification)

Producers

July

Pacific

record

30

stock

Expected in

(8/25)

Price—At 100% of

New West Amulet Mines Ltd.

New

Co., New York, N. Y.

July 7 filed $10,996,000 of 4%% convertible debentures,
being
offered
for
subscription
by common
stock-.,
holders
on
the
basis
of
$100
principal amount of
debentures for each 40 shares of common stock held of

Office—145 Yonge Street, Toronto, Canada.
—None. Statement effective July 29.

Canada.

Electric Co.

Inc.

300,000 shares of com¬
Price—$1 per share. Proceeds
expansion. Office—Alliance, Ohio. UnderwriterPearson, Murphy & Co., Inc., New York. Offering —.

tures, due Sept. 1, 1974, with attached warrants for the
purchase of 30,600 shares of common stock, and, in addi¬
tion, filed 50,000 shares of common stock. Price—To be
supplied (for each issue) by amendment. Proceeds—The
proceeds from 10,000 shares of common stock will go to
selling stockholders. The balance of the proceeds will be
used to purchase advertising structures and poster panels,
to pay Federal and state tax liabilities, to purchase motor
trucks, to pay certain debts, and to assist in the purchase
of two similarly engaged companies. Office—995 North
Mission Road, Los Angeles, Calif. Underwriters—Lester,
Ryons & Co., and Wagenseller & Durst, Inc., both of
Los Angeles.

June 11 filed 1,265,000 shares of common stock, of which

ment

&

Porce-Alume,

—For

Aug. 10 filed $850,000 of 15-year 6% subordinated deben¬

proposed underwriter.

Proceeds—To

Bache

Pacific Outdoor Advertising Co.

New Pacific Coal & Oils Ltd.

current

—

•

July

mon

Aug. 25.

fice—1250 Wilshire Blvd., Los Angeles 17, Calif. Under¬
writer—Waldron & Co., San Francisco 4, Calif., has

then

Underwriter

Pacific Gas &

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For
organizational ex¬
penses and first three months' operational expenses. Of¬

the

J.

N. Y.

July 31 filed $65,000,000 of first and refunding mortgage
bonds, series EE, due June 1, 1991. Proceeds—For prop¬
erty additions and improvements and the retirement of
$36,500,000 of short-term bank loans incurred for tem¬
porary financing of such activities.
Office—245 Market
Street, San Francisco, Calif. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: The
First Boston Corp. and Halsey, Stuart & Co. Inc. (joint¬
ly); Blyth & Co., Inc. Bids—Expected to be received on

Small Business Capital Investing
Corp.
April 24 filed 500,000 shares of capital stock (par 50
cents).
Price — $1 per share/Proceeds — For working

Exchange.

optical test equipment; purchase and installation of fix¬
tures and for working capital.
Office — c/o McNabb,
Sommerfield & James, 40 Exchange Place, New York,
N. Y. Underwriter—M. H. Woodhill, Inc., New York.

30

New York, N. Y.
May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—= For repayment
of outstanding obligations and for working capital. Un¬
derwriter—Investment Bankers of America, Inc., Wash¬
ington, D. C. Offering—Expected any day.

Nationwide

as

Underwriter—Bache &

Oreclone Concentrating Corp.,

latter part of August.

withdrawn

(letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
Purchase and installation of machinery; electronic and

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, La.
Underwriter —
Lindsay Securities Corp., New Orleans, La.

Leasing System, Inc.
July 16 (letter of notification) 142,500 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For financing of leased cars and for general
corporate
purposes. Underwriter—Investment Bankers of America,
Inc., Washington, D. C. Offering—Expected during the

Office—Hartsdale, N. Y.

N. J.

College Point, L. I., N. Y.

Photronics Corp.,
June 9

Valley Water Co. (8/28)
(letter of notification) $125,000 of 5J/2% first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost of
construction of the water supply and distribution sys¬
tem; to pay the cost of a new 12 inch well to increase
the company's supply of water; and to pay the costs and
expenses
of financing.
Office—330 Main St., Mantua,

Auto

capital and investments.
derwriter—None.

held.

have expired
July 31, 1959, but expiration date has been extended
to Sept 15. Price—1% cents per share. Proceeds—For
working capital. Office—Soriano Building, Plaza Cer¬
vantes, Manila (P. I.). Underwriter—None.

Oak

June

100%

—

—330

,

com¬

convertible income deben¬

Price

warrants.

being
stock

2, 1959; rights were to

Recordi date June

Oak Valley Sewerage Co.
(8/28)
30 (letter of notification) $145,000 of 5Vz% first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay to Oak Valley, Inc. a portion of the cost of
construction of sewerage collection and disposal system
and to pay the costs and expenses of financing.
Office

(9/2)

1969, series C, and 100,000

Aug. 12.

Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock,
offered for subscription by holders of outstanding
at the rate of one new share for each two shares
•

•

Securities & Research Corp.
Aug.. 7 filed $5,000,000 of National Growth Investment

Series, an investment
Office—120 Broadway, New York.

Statement withdrawn

(8/25)

June

National

pany.

—161

Keystone,

on

operating capital.
Canada. Underwriter—

-Plans for the accumulation of shares of the Growth Stock
Series of National Securities

Inc.,

same. Underwriter—Caldwell Co., 26 Broadway,
York, N. Y.

New

Saskatchewan,
Rumball Ltd., Regina, Saskatchewan, Canada.

&

Dakota

Minerals,

ducing

Price—$1 per share. Proceeds—To retire indebt¬
edness for construction of
plant and for other liabilities,
and the remainder will be used for
Laird

Defense

working interests in oil

sale of the common stock to
the selling stockholder. Office
E. 42nd Street, New York.
Underwriters—Sim¬
& Co., and Michael Horowitz, both of New York,

gas leases; from the
Creole Explorations, Inc.,

and

May 4 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For exploring and recovering strategic metals and pro¬

stock.

Office—Regina,

Northwest
S.

Ltd.

15,000 shares of

preferred stock to Petrosur for

mons

•

35

consisting of one share of preferred at $5 and one share
of common at $1.20
Proceeds — From the jsale of the

bury, New York. Underwriter—None.

Proceeds—To be used to retire short-term

bank

and

(759)

The Commercial and Financial Chronicle

June

26,

Petrolei/im Ltd.,

1958

filed

each three shares

held (with an

oversubscription privi¬

The subscription period will be for 30 days fol¬
lowing issuance of subscription rights.
Price—To ba
supplied by amendment. Proceeds—To pay off demand
note, to pay other indebtedness, and the balance if any
will be added to working capital. Underwriter—Pacific
lege).

Securities Ltd., Vancouver,

Canada.

J.
stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
stock (no par) to be offered to the holders of preferred
and common stock of Brooks Foods, Inc., at the rate
of one share of Ritter preferred stock for each share of
preferred stock of Brooks and two shares of common
stock of Ritter for each share of common stock of
Brooks. The exchange offer is being made by Ritter in;
accordance with its agreement with Brooks and certain
of
its stockholders who own an aggregate of 18,805
shares of its outstanding common stock, or approxi¬
mately 62.5% of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬
Co., Bridgeton, N.
June 18 filed 4,827 shares of preferred
Ritter

(P. J.)

istration statement.
•

Rorer

(William

L

H.)

Inc.

(8/20)

July 22 filed 155,269 outstanding shares of capital stock
(par 33V3 cents) subsequently reduced by amendment
to 90,000 shares. Price—$48.75 per share. Proceeds—To
selling

stockholder.

Office—4865 Stenton Ave.,
Continued

Phila-

on page

3$

\

36

Continued from page

Bonus

Rozee

seven

29

cents).

Regis Paper Co.
30,000 shares of common stock (par $5).
company proposes to offer this stock in exchange
outstanding shares of common stock of Lone Star

Regis will

declare

the

exchange

effective

offer

if

St.

Regis Paper Co.
filed 20,000 shares

24

building program

being offered by the

150

East

42nd

Statement has

St.,

company

York.

New

been

Underwriter

fered in exchange for the outstanding shares of the cap¬
stock of the Cornell Paperboard Products Co. on
a

share of St.

Regis

deposited for exchange, and may be declared
are so deposited.
Office—
150 E. 42nd Street, New York.

2802

Saiant & SaJant,
Inc.
(9/8)
Aug. 7 filed 100,000 outstanding shares of class A capital
(par $5). Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Business—Company
is a leading producer of men's, boy's and juvenile pop¬
ular-priced utility and sports shirts, utility pants and
casual
slacks.
Underwriters—Kidder, Peabody & Co.
and Jesup and Lamont, both of New York.

July 15 filed 200,000 shares of

Fund,

common

Associates,

12

in

American

market.

common

Proceeds^-For investment.

Investment

Fund

Management Corp.
Shares in America, Inc.

tive

30

filed

Corp. (8/25)
1,600,000 shares of common

cents), of which 200,000 shares
account

of

the

are

and

company,

jccount of selling stockholders. Price—To
by amendment.

shares

be

Sire

Plan of

&

of

—

(par

supplied

—-33

to

by

owner

—For

stock,

of

common

'shares

are

to

be

Levey for sale by brokers.

working capital.

writer—None.

Office—New York City

offered

Under¬

Sottile, Inc.

(Formerly South Dade Farms, Inc.)
(9/7-11)
'
July 29 filed 2,000,000 shares of common stock
(par $1),
of which 1,543,000 shares are
to be issued and sold for
the account of the
company/and 457,000 shares, repre¬
outstanding stock, to be sold for the accounts
of certain selling stockholders.
Price—To be supplied

senting




by

incurred

for

its

a

new

mostly
plant and reducing

construction.

Wis. Underwriter—Loewi

&

Office—Dela-

Co., Inc., Milwaukee,

Strategic Materials Corp.
June 29 filed 368,571 shares of
fered for subscription
rate of
-

To
of

or

stock.

sell

Bear,

of the preferred stockholders, will
public sale 550 shares of preferred

one

a

price to be supplied by amend-

one

new

common

stock, to be of¬

by common stockholders at the
share for each five shares held. Price—

be

supplied by amendment. Proceeds—For
payment
bank
loans; for payment of a note; for

working
capital; for expenditures bv Strategic-Udy
Metallurgical
& Chemical Processes
Ltd., which owns and operates
a
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategic's principal
subsidiary,
and by its other direct
subsidiary,

Strategic-Udy Pro¬

cesses, Inc., which owns and operates a
laboratory at
Niagara Falls, N. Y.; as working capital for a
mining
subsidiary; ^or payment of a mortagage; and as working
capital for another subsidiary. Underwriters
S. D.
—

Lunt &

Technology,
May

Inc.

filed 325,000

15

shares of common stock (par 10
Price—$4 per share.
Proceeds—To pay off in
subscription of Microwave Electronic Tube
Co., Inc. stock, represented by notes, to pay for im¬
provements upon the plant leased to Microwave, and
for working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L,

cents).
full

the

Wolf

Associates, Inc., Washington, District of Columbia.

•

Terminal

Tower

Co.

i

JuJLy.21 filed $2,500,000 7% 10-year sinking fund deben¬
tures, due Aug. 1, 1969, with warrants, each warrant en¬
titling the holder to buy 40 shares of common stock ($1
par) until Aug. 1, 1962 at $10 per share. Price—To be
offered at 100% of principal amount. Proceeds—To re¬
bank indebtedness. Underwriter—Fulton Reid & Co.,

pay

Ohio.

Offering

—

Expected

early

in

if Tex-Star Oil & Gas Corp.
Aug. 12 filed $1,000,000 of 6% convertible debentures,
due Sept. 1, 1974. Price—At 100% of principal amount.
Proceeds—For general corporate purposes, including ex¬

ploring for oil and acquiring properties and small oil and
gas companies.
Office—Meadows Bldg., Dallas, Texas.
Underwriters—Stroud & Co., Inc.,, Philadelphia, Pa., and
Auchincloss, Parker & Redpath, New York. OfferingExpected in September.
Textron

Electronics

Co.

Aug. 3 filed 500,000 shares of outstanding common stock,
to

be

offered

holder
share
of

by Textron Industries, Inc., the present
thereof, to its stockholders on the basis of one

of

Textron

Textron

Price—To
rance

Electronics

Industries
be

stock

stock

held

as

for

each

of the

10

shares

record date.

Office—10 DorUnderwriter—None.

supplied by amendment.

Street, Providence, R. I.

Co., New York.

July 29 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—For gen¬
eral corporate
purposes; including
the acquisition of
store
properties and expenses incidental to the
opening of stores. Office—210 East Main Street, Rock-

new

ville, Conn. Underwriter—D. Gleich Co., New York.
fering—Expected in the latter part of September.

Of¬

Transcon Petroleum & Development

Corp.,
Mangum, Okla.
(letter of notification) 300,000 shares of com«
mon
stock.
Price—At par ($1 per Snare).
Proceeds—
For development of oil properties.
Underwriter—First
Investment Planning Co., Washington, D. C.
March 20

if Transcontinental Gas Pipe Line Corp.
Aug. 17 filed $2,957,352 of Interests of Participants in its
Thrift Plan for

Employees, together with 135,193 shares
stock, and an aggregate of 178,929 shares of
five series of preferred stock which may be purchased
under the Thrift Plan during the three years of its oper¬
ation beginning July 1, 1959. Office — 3100 Travis St.,
Houston, Texas.
of

common

if Transdyne Corp.
(letter of notification) 300,000 shares of common
(par one cent). Price—$1 per share. Proceeds—
For relocation of plant; purchase of additional electronic
laboratory equipment; purchase of additional machine
shop equipment; development of new products and for
working-capital. Office—58-15 57th Drive, Maspeth, New
York. Underwriter—Simmons & Co., New York, N. Y.
Aug. 7

Stelling Development Corp.
(letter of notification) 300,000 shares of common
(par one cent). Price—$1 per share. Proceeds—
For mortgages,
land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa
2, Fla. Under¬
writer—Stanford Corp.,
Washington, D. C.

this

Proceeds

loans

stock

were

wish to. offer
common

Tower's Marts, Inc.

|

June 3

S.

Co.,

offer for

Shields &

Underwriter

Products, Inc.

Wis.

Proceeds—For

issued or are to be issued
pur¬
in 1956; 13,742 shares are to be
various persons in lieu of cash
for services
puisuant to authorization of the directors in
Arthur

Road, Great Neck, N. Y.

equipping

suant to warrants
issued

issued

Great Neck

—

van,

Skiatron Electronics &
Television Corp.
Aug. 18 filed 172,242 shares cf common

&

may

and/or

Tool Research & Engineering Corp.
(8/26)
July 14 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment.- Proceeds—-For
working capital; to repay loans; and for additional
equipment. Office — Compton, Calif. Underwriter —

one

ment. Proceeds—For general
corporate purposes,
in connection with

Portfolios, Inc., 115 Chambers Street, New York City.
Skaggs Leasing Corp.
June 4 (letter of
notification) 240,000 shares of common

rendered,
January 1958; 30,000

(par

issuing company and 66,170 shares, representing out¬
standing stock, are to be offered for the account of a
selling stockholder. Price
To be supplied by amend¬

bank

corporate purposes.
Underwriter—Harrison
Brothers & Co., Salt Lake
City, Utah.

Stearns

who

preferred

•

filed

Aug. 7 filed 118,270 shares of common stock, of which
52,100 shares are to be offered for the account of the

alterations and construction thereon.
Office—115 Cham¬
Street, New York City. Underwriter—Sire Plan

stock, 128,500 shares

18

Sta-Rite

bers

share.

Option Plan for Key Employees. Office—30
Plaza, New York.

—None.

general

the

for

Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office

Co., New York.

per

offered

cent).

Tarrytown, Inc.

Price—$1.25

be

to

Sports Arenas (Delaware) Inc.
Nov. 18 filed 461,950 shares of common stock

for

cumulative, non-callable, participating pre¬
(par $10). Price—$100 per unit consisting

(par $1).

are

alley beds by eight at Yorktown Heights and
by six at Wilton Manor Lanes, Fort Lauderdale; $300,000
for deposits on
leaseholds, telephones and utilities; and
$395,000 for working capital. Underwriter—None.

Tarrytown, N. Y., and

.stock

shares

be

number of

$50 debenture and one share of
preferred stock.
The minimum sale is
expected to be five units. Proceeds
For general corporate
purposes incidental to the ac¬
quisition of land and buildings in
one

51,667
To

Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other
installations, fixtures and equipment; $85,000
to expand two present establishments
by increasing the

July 13 filed $900,000 10-year 6% debentures and
18,000

shares of $3
ferred stock

—

(Delaware) Inc.
$2,000,000 of 6% 10-year convertible de¬
bentures (subordinated), due Jan.
1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF

Proceeds—For working capital. Office—
♦Central Ave. and Mechanic
St., Silver Creek, N. Y. Un¬

derwriter—Maltz, Greenwald

including working capi¬
Underwriter—First South¬

Texas.

Sports Arenas

to be offered for

1,400,000

which

Price

Stock

Nov.

Advisor—

stock

of

Rockefeller

Silver Creek Precision

March

shareholders

of

Cleveland,
September.

Underwriter—None.

Sperry Rand Corp.
Aug. 7 filed 1,500,000 shares of common stock (par 50
cents), to be offered pursuant to the company's Incen¬

Office—1033-30th~
Former Name

preferred
shares

Inc.,

168,666 shares for selling stock¬
supplied by amendment.
Pro¬
ceeds—For working capital, etc. Office—Richmond
Hill,
L. I., N. Y. Underwriter—S. D. Fuller &
Co., New York.

Price—At

Street, N. W., Washington 7, D. C. Investment

HiggAR-

Co., Dallas.

holders.

Inc.

stock.

New

account of company and

Industry, Inc.

filed 50,000 shares.of

Office—Dallas,

cents),

Price—To

View Industries, Inc.
(8/26)
July 14 filed $420,000 of 7% convertible subordinated
debentures and 84,000 shares of common stock
(par 10
-cents). Price—$340 per unit of two debentures at $100
par and 40 shares of common stock at
$3.50 per share.
Proceeds—To retire loans; for
machinery and equipment;
and to add to
working capital. Office—3975 N. W. 25th
Street, Miami, Fla. Underwriter—Michael G. Kletz &
Co., Inc., New York City.

Shares

—

Speedry Chemical Products Co., Inc. (9/7-11)
July 31 filed 218,333 shares of class A stock (par 50

Sea

Dec.

Lexington, Houston 6, Texas.

west

supplied by amendment. Proceeds—For investment.
-Office—23 Hazelton Circle, Briarcliff
Manor, N. Y. Gen¬
Distributor—Samson

shares.

For general corporate purposes,

tal.

be

eral

their

of

Southwestern Drug Corp.
July 22, 1959 filed 37,818 shares of common stock (par
$1). Price—To be supplied by amendment. Proceeds—

Inc.

stock.

sale

Proceeds—For oil and gas exploration program. Office—

stock

Securities

the

Ventures, Inc.
22 filed $1,000,000 of participations in the com¬
pany's 1959 Oil and Gas Exploration Program. Price—
$5,000 per participation (minimum is 2 participations).

are

Convertible

1, 1961, at the conversion price of $3 per share,
(taking the preferred at $100 per share). The preferred
stock was originally issued by the company in October
1958, to 20 banks and three insurance companies pur¬
suant to a corporate reorganization. The largest block3
of preferred stock are now held by two insurance com¬
panies—the Metropolitan Life Insurance Co. and the
Prudential Insurance Co. of America.
The filing was
made in order to provide a prospectus for use by the

per

July

effective if 80% of said shares

Samson

Price—$1

if Southland Oil

share of Cornell capital stock. The offer will be declared
effective if 90% of the outstanding shares of the Cornell
stock

Jan.

stock owned by it, at

Corp., both of New York.

son

for each

common

Co.

loans and notes and for working capital. Office
York City. Underwriters—Hirsch &
Co., and Lee

ital

the basis of .68 of

Finance

Corp.
July 21 filed 300,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To
pay

stock, to be of¬

common

Frontier

Southern Realty & Utilities

amended.

if St. Regis Paper Co.
Aug. 12 filed 453,731 shares of

to

filed 165,000 shares of $5 convertible preferred
(par $100) and 5,500,000 shares of common stock
(par $1). The 5,500,000 shares are reserved for issuance
upon conversion
of the preferred stock on and after

11 filed 1,300,000 shares of common stock

with

None.

—

used

(par 50
share.
Proceeds—For working
capital and to purchase products for company. Office—
Raleigh, N. C. Underwriter—No underwriter is involved,
but the company officials, who are making the offering,
may pay a
10% commission to dealers in connection

Chemical

of

Southern

cents).

in exchange for the com¬
Packaging Corp. on the basis
of one share cf St. Regis common for each five and onehalf shares of common stock of Chemical. The exchange
offer will expire on Aug. 31, unless extended. Office—
stock

mon

be

Underwriter

Studebaker-Packard Corp.

initially
•

(par $5)

stock

common

Price
complete
of Southeastern and to expand other
Proceeds—To

divisions.

Aug.

of

share.

per

1959

Kansas City, Mo.

Proceeds—For general corporate purposes.
& Co., St. Louis, Mo.

stock

—$2.50

Thursday, August 20,

—White

—Bear, Stearns & Co., New York.

that the Development Corp. will own at least 75%.

policies of Lone Star. Statement to be amended.

June

10

...

(letter of notification) 23,169 shares of common
(par $1). Price—To be supplied by amendment.

stock

July 1

April 7, 1960, of the same number of shares at $2.50
share. An additional 37,429 shares are to be offered
exchange for the common stock of Southeastern
Building Corp., on a one-for-one basis, conditional upon
the tender of sufficient Building stock for exchange so

deposited for exchange, and may elect to do so if a lesser
percent, but not less than 80%, of all the Lone Star
common will enable it to control the business operations
and

loan of $6,400,-

per

95% of the outstanding shares of Lone Star common are

me

.

June 8

to add to working capital; to retife certain longterm indebtedness; and to develop citrus groves.
Office
—250 South East First Street, Miami, Fla.
Underwriter

in

Bag and Bagging Co. on the basis of 0.6782 of a share of
St. Regis common for each share of Lone Star common.
St.

bank subsidiaries; to repay a bankl

Stuart Hall Co.,

common

Aug. 18 filed 738,964 shares of common stock, of which
340,000 shares will be offered publicly. Each purchaser
will receive^an option for the purchase on or before

St.

for

the

if Southeastern Development Corp.,
Haitiesburg, Miss.

June 26 filed
The

of

000;

filed 70,000 shares of common stock (par 10
Price—$5 per share. Proceeds—For general cor¬
porate purposes, including advertising and promotion
expenses and the addition of working capital.
Office112 W. 42nd Street, New York.
Underwriter—Jay W.
Kaufmann & Co., New York.
July

70%

retire

outstanding at the date of the stock offering; to
invest in, the capital stocks of six of the company's

stock

Inc.

Ctub,

Proceeds—To

amendment.

35

delphia, Pa. Underwriters—Kidder, Peabody & Co., New
York, and Schmidt, Roberts & Parke, Philadelphia, Pa.

•

The Commercial and Financial Chronicle

(760)

Co., Buffalo, N. Y.; and Allen & Co., New York.

stock

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible bonds, to be offered
in denominations of $500 and $1,000 each.
Price—100%
of principal amount. Proceeds—For construction, instal¬
lation of machinery and equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash.' Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.
• Union Electric Co.
(9/10)
Aug. 7 filed 1,057,725 shares of common stock (par $10),
to be offered for subscription by stockholders of record
Sept. 10, 1959, on the basis of one new share for each

10 shares then
pany

will

also

subsidiaries
to

held; rights to expire Sept. 30.
offer

shares

to

not

The

com¬

its

employees and those of its
deliverable under the offering

stockholders, and also 21,123 shares

now

held in the

Number 5874

190

Volume

.

Commercial and Financial Chronicle

; The

.

be supplied by amendment. Pro¬
general corporate purposes, including the
of additions to plant and property and the

Price—To

treasury.

$100

ceeds—For

ance

financing

"in

retirement of loans already incurred for these purposes.
Office—315 North 12th Blvd., St. Louis, Mo.
Under¬
To

be

determined

competitive bidding.
Probable bidders: Lehman Brothers; White, Weld & Co.
and Shields & Co. (jointly); Merrill Lynch, Pierce, Fenwriter

—

by

& Smith, Inc.
Bids—Expected
Sept. 10, up to 11 a.m. (EDT).

ner

United Artists Corp.

to

be

received

on

$1).

Price—To be supplied by amendment. Pro¬
stockholders. Office—729 Seventh Ave.,
New York. Underwriter—F. Eberstadt & Co., New York.

ceeds—To selling

Price—
$3.50 per share. Proceeds—For general corporate pur¬
poses and to reduce indebtedness.
Off ice — 222 — 34th
Street, Newport News, Va. Underwriter—Willis, Kenny
& Ayres, Inc., Richmond, Va. Offering—Expected some¬
time during August,
of common stock.

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5,
Price — $10 per share. Proceeds — For acquisition o.
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, b:
lease or purchase.
Office — Wilmington, Del. Under
Myrl

L.

McKee

of

Portland,

Ore.,

li

President.
•

United

Industries

Co.,

Inc.,

Houston, Texas

and

Western Wood

None.

Union

Gas

Co.

was

Offering—Expected before the end of the

inc.
(8/24-28)
approval for the is¬
250,000 shares of class A common stock (par
$1).
Underwriter—Cruttenden, Podesta & Co., Chicago,
111.
Price—$10 per share.
New Name—The company's
name will be changed to Buckingham
Freight Lines.
of

suance

York.

Central &

May 19 it

Southwest

Corp.

announced

tnat the company in view of
generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. Under¬
writers

was

To

—

be

determined by competitive bidding.
Blyth & Co., Inc. and Harriman Rip¬
(jointly); Lehman Brothers and Lazard

Probable bidders:

ley & Co., Inc.

Freres & Co.
(jointly); The First Boston Corp.
Merrill Lynch, Pierce, Fenner & Smith Inc. jointly.
•

Central Transformer

The

Fiber Co.

of

intends

company

stock

common

amendment.
ital.

Office

and

Corp. ■
to

file

(par $1).

shortly
75,000
shares
Price—To be supplied by

Proceeds—For expansion and
—

working cap¬
Bluff, Ark.
Underwriter — Eppler,
Inc., Dallas, Texas.

Pine

Guerin & Turner,

„,

..,...

.I

.li-...--p—-'

ler, both of New York.
it Columbia Gas System Inc. (10/8)
Aug. 19 it was reported that the company is contemplat¬
ing the issuance and sale of $25,000,000 of debentures
Oct.

due

1, 1984. Proceeds—For 1959 construction pro¬
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

Prospective Offerings

Merrill

American Gypsum

up to 11 a.m., (New
of the company, 120

—Scheduled for Sept. 11. Bids—Expected to be received

was

July 30 it
suance

Kidder, Peabody & Co. (jointly).
received

on

Atlantic

.

May

.

May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—
a racing plant; and for work¬

To construct and operate

ing capital and other corporate purposes. Office—Notre
Dame Avenue at Kirig Street, Winnipeg, Canada. Under¬

certain

Inc.

6y4% cumulative preferred
shares of common stock, to be offered
to the stockholders of Ralph E. Mills Co., Talbott Con¬
struction Corp. and Talco Constructors, Inc., in exchange
for all the outstanding capital stock of these three cor¬
June 29 filed 10,000 shares of
stock and 560,000

—D.

common

H. Blair &

Benson

announced that

was

reported

that

Miami, Fla.
this company plans

an

200,000 shares will be sold for the account of
selling stockholders, and 50,000 shares will be
the company's account.
Proceeds — Working
—

Clayton Securities Corp., Boston,

Offering—Expected in the middle part of Sept.

Cyprus Mines Corp.
July 15 it was reported that approximately 1,000,000
a secondary issue common stock will be regr
istered in-the Fall. Underwriter—Merrill Lynch, Pierce,
Fenner & Smith Inc., New York.

Burnham & Co., New

shares of

15 it was reported

issue of

Co.

for

Mass.

that the company is planning
Business — The 19-year-old
company operates 67 retail candy stores in the Greater
New York area, and 45 other outlets in the area north
of Atlanta, Ga., and east of Chicago, 111.
Grcss sales
volume in thp fiscal year ended June 30 was reportedly
about $10,000,000. Proceeds — In part to selling stock¬
holders, and, in part, to the company, for the expansion
of production facilities, for the organization of additional
outlets, and for general corporate purposes. Underwriter
an

it

26

capital. Underwriter

—

Gas

offering of about 250,000 shares of class A common stock,

Barton's Candy Corp.

July

it Vita-Plus Beverage Co., Inc.
Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation
of a program of national distribution and for working
capital. Office—373 Herzl St., Brooklyn, N. Y. Under¬
writer—Caldwell Co., New York, N. Y.

Natural

Comerford, President,

plans later in year to issue and sell $20,000,000

of which

York.

writer—Original underwriter has withdrawn.

Dec. 1.

Construction Products Corp.,
June

Aurora Plastics Corp.

Underwriter

For construction expenditures.

bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (jointly).

sold

airplane models.

—

of debenture

directors are contemplat¬
small amount of common
stock, after, a three-for-twa stock split.
Last equity of¬
ferings were underwritten by Eastman Dillon, Union Securities & Co.; and Smith, Barney & Co., both of New
York.
Offering—Expected during the latter part of

July 30 it was reported that the company plans early
registration of 225,000 shares of common stock (part for
selling stockholders). Business — Manufactures plastic

Raceway

James

19,

company

City Electric Co.

Victoria

on.

Consolidated

Bids—Expected to be

this year.

(12/1)

plans the is¬

bidders:

to be received

Nov. 17.

etc. Office—1332
Street, N. W., Washington, D. C. Underwriter—None.
Proceeds—For investment,

company

by competitive bidding.
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected
Probable

ing the issuance and sale of a

Life Insurance Co. of America

reported that the

Proceeds

bonds.

gage

Aug. 3 it was reported that the

April 21

was

and. sale of $50,000,000 first and refunding mort¬

Underwriter—To be determined

^ American Telephone & Telegraph Co. (11/17)
Aug. 19 the directors authorized a new issue of $250,000,000 of debentures. Proceeds—To be used for the im¬
provement and expansion of Bell Telephone services.
Underwriters—To be determined by competitive bidding.
Probable bidders: The First Boston Corp. and Halsey,
Stuart & Co. Inc. (jointly); Morgan Stanley & Co. and

(partnership in¬

York Time) on Oct. 8 at the office
East 41st Street, New York.

Consolidated Edison Co. of New York Inc.

New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.

Phoenix, Ariz.

Lynch, Pierce, Fenner & Smith Inc. and White,
(jointly); Morgan Stanley & Co. Registration

Weld & Co.

que,

Statement effective Aug. 11.

Vulcan Materials Co.,

it

•
Buckingham Transportation,
July 17 the company sought ICC

Co.
reported that the company will register
equity securities later this year. Proceeds—For
construction of a gypsum products plant in Albuquer¬

terests) to be offered in units. Price—$5,378.39 per unit.
Proceeds—For investment.
Underwriter—O'Malley Se¬

conU. cts.

the basis

year.

debt and

cents). Price—To
(expected to be $1 per share). Proceeds—For explora¬
Statement became effective Sept. 9, 1958.
An amendment, filed July 27, 1959, noted a change of
name
to Oremont, Inc.
Underwriter—O. W. Sorensen.
Graham Albert Griswold of Portland, Ore., is President.

M

./f,

July 15 it

tion purposes.

filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium

on

of the record

gram.

stock
be supplied by amendment

Variable Annuity

19

tion program.

& Co., New York.

ney

Corp. of America, Portland, Ore.
1957 filed 1,250,000 shares of common

curities Co.

as

reported that the company is contem¬
plating some additional equity financing, the form it will
take will be decided on shortly. Proceeds—For construc¬

Office—Stamford, Conn. Underwriter—Myron A. Lomas¬

Uranium

investment contracts

meeting to be held Sept.
issuing 271,553 shares of

a

offering was underwritten by The
Corp., New York.

• Brooklyn
Aug.

including the discharge of various indebted¬
purchase and installation of new equipment;
for the establishment of a new testing laboratory.

and

10,000 shares of common
stock (par 15 cents). Price—$5 per share. Proceeds—
For general operating funds. Office—700 Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas National Corp.,
San Antonio, Tex.

80

consider

The last rights

First Boston

and the

ness

($100 per share). Pro¬
tools. Office—324 N. Maple

Investment Co.,

New

will

share for each 10 shares held

one new

date.

purposes,

Finance Corp.

filed

of

reported that at

stock, to be offered to stockholders

Cincinnati, Hew Orleans & Texas Pacific Ry.
(8/24)
•
July 27 it was reported that the company* plans to re¬
• York Research Corp.
ceive bids on Aug. 24 for the purchase from it of $4,(9/2)
Aug. 10. filed 150,000 shares of class A stock (par $l)r~ "440,000 of equipment trust certificates. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & HutzPrice—$3 per share. Proceeds — For general corporate

Inc.

July 13 (letter of notification)

29

both

of

(par $10)
and 40,000 shares of preferred stock (par $25). Price —
At .par.
Proceeds—For construction and equipment of
company's plant and for working capital.
Office—300
Montgomery St., San Francisco, Calif.
Underwriter—

St., Bowling Green, Ohio. Underwriter—None.

Val Vista

Co.,

Edison Co.

was

stockholders

common

March 5 filed 100,000 shares of common stock

fered to employees. Price—At par

•

&

2

St., Everett, Wash. Underwriter—Blyth & Co., Inc., Los
Angeles and New York.
*

.it Universal Crankshaft Corp.
Aug. 10 (letter of notification) 1,898 shares of common
stock of which approximately 1,000 shares are to be of¬

June

Wasserman

Boston

Coast Telephone Co.
(9/15)
Aug. 13 filed 135,000 shares of common stock (par $10),
of which 10,000 shares are to be offered to employees
under the company's Employee Stock Option Plan, and
125,000 shares offered for public sale. Price—To be sup¬
plied by amendment. Proceeds—For construction, includ¬
ing the repayment of about $800,000 of bank loans al¬
ready incurred for this purpose. Office—1744 California

Beach, Nassau County, New York. Under¬
writer—Heft; Kahn & Infante, Inc., Hempstead, N. Y.
Offering—Expected sometime, during this month.

(par 16

Truman,

Co., Inc.; The First Boston Corp.; Harriman Ripley &
Inc.; Lehman Brothers; and White, Weld & Co.

July 23 it

it West

East Atlantic

April 30,

its

&

37

Co.

Statement effective July 8.

(letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$2.25 per share. Proceeds—
For a plant and equipment; purchase and construction
of research and development test equipment and labora¬
tory and operating capital. Office—112 Clayton Avenue,

Universal

of

turers; and for working capital. Office—65 Honeck St.,
Englewood, N. J. Underwriters—Amos Treat & Co., Inc.,

Aug. 5

and

expansion

•
Wellington Electronics, Inc. (8/24)
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank.note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬

capital. Underwriter—Dempsey-Tegeler & Co., St. Louis,
Mo.
:-/v
V

equipment

further

of

capital
business."

working

Street, New York 1, N. Y. Underwriter
Republic Underwriters Corp., same address.
offering is expected in September.

The

for construction of grain
elevator and balance will be used for additional working

ceeds—For

company's

—The First

to pay

United States Communications,

the

Engineering and Research Associates
July 28 filed $1,065,000 of participations in partnership
interests. Proceeds—To purchase land and buildings of
Waltham Engineering and Research Center, Waltham,
Mass., and for expenses connected to the purchase. Of¬

(9/2-4)

be used

anticipation

to

Waltham

Aug. 5 filed 100,000 shares of 60 cent cumulative convert¬
ible preferred stock. Price — At par ($8.50 per share).
Proceeds—To

added

St., Kansas City, Mo. Underwriter—
Kidder, Peabody & Co., New York.

v

writer—None.

be

fice—49 W. 32nd

(8/24-28)

United Discount Corp.
July 23 filed 500,000 shares

preferred stock now outstanding and the bal¬

will

Office—20 West 9th

July 31 filed 100,000 shares of outstanding common stock
(par

par

(761)

Dallas

stock.

Power

& Light Co.

Aug. 3 it was reported that the company contemplates
the issuance and sale of about $20,000,000 of senior se¬

curities, but type or types has not as yet been deter¬
Underwriter—To be determined by competitive

mined.

Probable bidders: (1) For bonds: Halsey, Stu¬
The First Boston Corp.^Salomon Bros.
& HutzJer; Kidder, Peabody & Co. and'Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Eastman Dillon,
Union Securities & Co.; Blair & Co., Inc. and Baxter &

bidding.
&

art

Co., N, Y. C.

Co. Inc.;

Co.
(jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth

Kansas City, Mo.
announced that the company contem¬

Manufacturing Co.,

Co., Chattanooga, Tenn., for the business and assets of
that company.
Office—Mountain Brook, Ala. Statement

capital. Business—The company

Co., Inc. and Merrill Lynch, Pierce, Fenner & Smith
(jointly); Salomon Bros. & Hutzler;-Equitable Securities Corp.; Eastman Dillon, Union Securities & Co.;
Lehman Brothers; Blair & Co. Inc.; The First Boston

became

facture of aircraft and

Corp.

June

effective

on

• Waddell & Reed, Inc. (9/22-25)
Aug. 17 filed 370,000 shares of class A common stock (par

share.

Proceeds—To redeem at 105%

thereof,

1,500

shares of class A

of the par value

preferred

stock

($100

par) and at 120% of the par value thereof, 375 shares of




it

was

&

Inc.
••

is engaged in the manu¬
missile parts, aluminum containers
and beer barrels, aluminum curtain wall sectibns for the
building industry and other proprietary products. Un¬
derwriter—S. D. Fuller & Co., New York.

July 20.:

$1), non-voting, of which 80,000 shares are to be offered
for public sale for the account of the issuing company
and 290,000 shares, representing outstanding stock, by
the present holders thereof. Price—About $28-$32 per

10

plates an offering of $4,500,000 of common stock.
Pro¬
ceeds— *' For expansion program and additional working

porations, and to the owner of Sherman Concrete Pipe

Boston

Offering—Expected in the latter part of this year.

Duquesne Light Co.
Aug. 3 it was reported

that the company is contemplat¬

ing the issuance of an undetermined amount of subor¬
dinated convertible debentures.
Underwriter— To be

Edison Co.
••

^

July 23 it was reported that at a meeting to be held
Sept. 2 stockholders will consider issuing not more than
$15,000,000 of first mortgage bonds. Proceeds—To retire
short-term bank loans. Underwriter—To be determined

by competitive bidding. Probable bidders:

Kalsey, Stuart

determined

by competitive bidding.

Probable bidders:

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Dillon, Union Securities & Co.; A. C. Allyn &

Continued

on

Eastman
Co., Inc.
page 38

38

The Commercial and

(762)

Continued-from page 37
The Fust Boston Corp.

& Co •

—Newton, Mass. Underwriter—G. Everett ParKs & Co.,
Inc., 52 Broadway, New York. Offering — Expected in

White, Weld

Thalmann & Co. (jointly);

and Ladenfcurg,

and Glore, Forgan & Co.

(jointly); Blyth & Co., Inc.; Drexel & Co. and
Securities Corp. (jointly). Offering—Expected

later this

Hawaiian

Natural Gas Co.

Paso

El

April 28 to

voted

Stockholders

stockholders

shares,

Proceeds — For major expansion program.
Underwriter—-White, Weld & Co., New York.

Hawaiian

shares.

it

was

•

Bank & Trust Co.

Directors

the

30

approved

it

each

market

approximately $25,000,000

offer

basis

the

on

shares

30

of

held.

stock

common

debentures

of

Stuart

Co.

&

Inc.; The First Boston Corp. and Blyth &
(jointly); Equitable Securities Corp.; White,

general

&

corporate

purposes.

Registration

Co., New York.

General Contract Finance

July 31 it
will

ers

was

be

of

announced that the company's stockhold¬
on
Sept. 15 to approve an issue of

additional

to

250,000 shares of convertible preferred stock (par $20).
Of these shares, 150,000 will be offered initially.
Pro¬
ceeds—To be added to the general funds of the company
and be used for its finance and personal loan opera¬
tions. Underwriter—G. H. Walker & Co., St. Louis, Mo.

expire

Utilities

stock,

July

rities

Corp.,

ligations,
least
a

a

long-term

may

the

to

suance

finance

a

July 31 it

pigeonhole

ceiling
the

when

a

bill

it

to

interest

on

government

voted

remove

rates

may

the

which

pay

on

its

bonds.

disturbed

and,

are

True

the
for

issue

weeks

had

but

recently it appeared
promise

through

proposal

aimed

at

up

that

been

to
a

would

helping




in

just
com¬

go

the

forced
to

to

Governments

sudden

turn

long-term

rate

at

U.

on

now

011

reflect

its

expected

by being

bond

sales

by developing

the

of

corporate

bond

against

any

the Treasury

financing,

common

available

stock

for

oh

the

each

ten

share.

Pacific

Co.

(8/27)

-

to noon

.

it

19

that

reported

was

••,,7/

this

division

General

of

Telephone «& Electronics

Corp.-is preparing to borrow
$25,000,000 in its own name. The division is-rplanning
the sale of 25-year straight debentures. Underwriter—
Paine, Webber, Jackson & Curtis, New York. Offering—
Expected sometime late in September.' ■
J
r

,

long

U.

Union

Electric

Cow (Mo.)

A

of

debt

of recent

cor¬

carrying high
coupons
tells the story of what
has been happening in the bond
market

where

tone has

a

generally firmer

prevailed.

ing

to

liberal
in

market

interest

brisk

strong

to

much

with

rates

demand,
make
as

for

holders of record

to

new

share

more

been

sufficiently
premiums
over

of
the

these

Accordingly, with some of the
seemingly getting a little
pricewise, from the buyer's

for

—

Sept. 10,

each

10

1959,

shares

on

then

Underwriter

.

chance

tion

over

a

offering good yield
capital apprecia¬
period.

big

notably

Abbreviated

for

As

Borrowers

finance

General

companies,

Motors

Accept¬

Corp., and Associates
ment
Co., finding their
resources being strained a
coming into the capital
ance

substantial

new

Invest¬

lending
bit

are

market

funds.

Underwriters

GMAC

has

registered

to

mar¬

a

nationwide bank¬

ing syndicate. This operation will
be completed well in* advance of
the
as

fall

upturn

in

new

models

appear.

Associates
raise

an

motor demand

Investment

additional

$50

plans

to

million to

■

their

dis¬

some

issues

which

have

been

in

abeyance suddenly are dusted off
and brought to market.
For

the

calendar

Pacific

Gas

million

of

&

shows

now

Electric

Corp. $65

bonds, due up for bids
Tuesday, as the only substan¬

tial

ket $125 million of 21-year deben¬

tures through

Calendar

and

tributing affiliates will be coast¬
ing through the greater part of the
coming week unless, of course,

on

the

of

one

—May be determined by competitive bidding. Probable
bidders:
Lehman Brothers;1 White,
Weld & Co., and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Smith, Inc.
r
'

and

com¬

have

3*4 points
offering prices for some

as

of

but

coupons

for

It develops that the issues

basis

viewpoint, there has been more' the first five years,'this issue is
of a tendency to search out
high- expected to be on the market
grade obligations carrying lower early in September.

The

new

issues

stock

common

the

held.-Proceeds —For expansion program.

Coupons Draw

run-down

porate

(9/10)

July 17 directors authorized issuance of 1,036,602 shares

program.

Lenders

High

favorites.

assured

Aug.

v

market.

S.

events,

that fact

a

appears

of

pressures

by

be

firmer tone. That quarter of the
market
has
been
stiffening
a
trifle of late along with the
top

short-term."

Seemingly

might

to

turn

confine

of
per

it Sylvania Electric Products

(10/1)

the

help actively contributing

inflationary

Co.

ob¬

not removed, the government

cannot

Connecticut State

will be made

It

share

new

Price—$35

Bros. & Hutzler.

that this company has applied

at

warned again that "if the ceilings

to

doubt

the

the

(EDT) on Aug. 27 for
$6,000,000 of equipment? trust certificates, maturing in
15 equal annual instalments, commencing
Aug. 1, I960.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon

•

maturing

the

by

one

held.

Southern

Railway Commission for author¬
to 200,000 shares of preferred stock (par

up

obviously

to

_

State

strata

it

by

Proceeds—To repay
temporary borrowings incurred for the company's ex¬
pansion program. Underwriter—None.

(10/1)

company's construction

was announced

ity to issue

Treasury will
have to do its new borrowing and
The
House Ways
and
Means refinancing through the issuance
Committee threw a. fast curve at
of short-term Obligations.
the Treasury
and, indirectly, at
Secretary of the Treasury
the investment market
generally Robert
B.
Anderson,
week

part of the

the Nebraska

to

accomplish

3V4%

Bonds

approval

to

Commission.

of

shares

Underwriter—Blyth & Co., Inc., New York.

basis.

that

change
basis

reported that the company, plans the is¬
of about $20,000,000 of debentures.,Proceeds—To

though last-minute action

present

certain

subject

was

develop to permit raising of

Savings

is

stock,

common

.

part of these programs

Even

Report

try

issue

$24,000,000

a

is to offer approximately 688,900 shares. The

Public Utilities Commission and by the Securities & Ex¬

(9/21)

Kidder,

Northern Natural Gas Co.

July 31 it

which must raise addi¬
money,

\

issue. Plan

Bids will be received up

Northern Natural Gas

Reporter's

Telegraph Co.

will issue and

company

co.

Aug. 19 directors authorized

of record

ber.

k

refund

shares held

Peabody & Co., Lee Higginson
Corp. and White, Weld & Co. (jointly); Blyth & Co.,
Inc. Bids—Expected to be received sometime in Decem¬

it Harrison Electrosonics, Inc.
Aug. 6 it was reported that the company plans to regis¬
ter 133,000 shares of common stock
(no par). Price—$3

this

seven

Co.

Gas

leportecklhat the

it Southern New England Telephone & Telegraph

—

plans to Issue
and sell $18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.. Kidder- Peabody & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley &
Co.;
Equitable Securities Corp. and Eastman Dillon. Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 21.
Bids—Expected to

new

j

competitive bidding. Probable bidders: Lehman Brothers;
Merrill Lynch, Pierce, Fenner & Smith Inc. and
Eastman,
Dillon, Union Securities & Co. (jointly); Equitable Secu¬

announced that the company

time

Co.,

approved a subscription offering by this
its stockholders of 264,013 shares of common
offered on the basis of one new share of

was

writer—To be determined

it New England Telephone & Telegraph Co.
Aug. 19 it was reported that the company will issue and
sell $10,000,000 of preferred stock.
Proceeds—For cap¬
ital expenditures. Underwriter
To be determined by

(9/17)

tional

&

CnWfatr.va

$80,000,000 of first mortgage bonds due 1984. Under¬
by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬
ly); White, Weld & Co. and Eastman Dillon, Union Secu¬
rities & Co. (jointly).
\

increase

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
Stanley & Co. Bids—Expected to be received on

recently acquired Booth-Kelly Lumber Co. Office

same

Proceeds—To

approved the issuance and sale of
of 35-year debentures. r Underwriter—To be
determined by competitive bidding.
Probable bidders:

—Olympia, Wash.

Co., New York.

sell

directors

21

Sept. 21.

Treasury

Aug. 17 it

$45,000,000

was reported that the company plans to reg¬
$15,000,000 of convertible debentures or pre¬
stock, conversion of which would add about
600,000 shares to the number of common shares cur¬
rently outstanding. Proceeds—To assist in the financing

Our

would be issued

about Oct. 8, 1959; rights,

22.

New England Telephone &

Aug. 19 it

Sept. 17.

(par $10)
or

July
24. Warrants will expire Sept. 30. Price—$13 per share.
Proceeds—For capital expenditures. Underwriter—None.

ister about

on

on

Oct.

about

or

stock for each

common

ferred

&

\

Hutzler.

it Southern

be

to

gan

be received

on

company to

it Georgia-Pacific Corp.

was

com¬

Maritime Telegraph & Telephone Co. Ltd.
(8/24)
Aug. 17 the Nova Scotia Board of Commissioners of Pub¬
lic

Inc.

be received by the company up to noon (EDT)
24 for the purchase from it of $4,470,000 of
equipment trust certificates, to mature in 15 equal an¬
nual instalments from June 1, I960, to 1974. Probable
bidders: Halsey\Stuart,& Co., Inc.; Salomon Brcs. &

•

Flooring Corp.
July 30 it was reported that the company plans early
registration of $1,500,000 of 15-year bonds and common
stock, to be offered in units. This will be the company's
first public financing. Business—Manufacturer of stretch
wool panel flooring.
Underwriters—H. M. Byllesby &
Co., Inc., Chicago, 111.; Mason-Hagan, Inc., Richmond,
Va.; Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.

Dec. 10 it

stock

common

and surplus. Underwriter—G. H. Walker
Louis, Mo.

St.

General

Georgia Power Co.

new

capital

Offering—Expected sometime in October.

of the

the 150.000 shares of

on

to stockholders of record

asked

House

Aug.

on

(par $10) outstanding, if approved, would be
payable on or about Nov. 2. An offering of 45,000 shares

Corp.

Salomon

Bid's'will

stock

mon

Inc.;

"H/r"

Underwriter—Allen

6

a

Aug. 25.

Halsey, Stuart & Co.

3 it was reported that the company plans some ad¬
ditional financing. Business—New York publishing firm.

was

Oct.

on

75,000
3 Vj % stock dividend

Underwriter; —
— Planned
for

on Aug. 26 for the purchase
equipment trust certificates.

of

Hutzler.

&

Random

Louis (Mo.)
reported that the bank's stockholders will
to approve a 2-for-l stock split of its
outstanding shares of common stock (par $20),

vote

(EDT)

$3,150,000

bidders:

(8/26)

it Seaboard Air Line R. R.

Aug. IS it

reported that the company will make an
stock offering. Proceeds—To buy planes

common

on

\Aug.

it Manchester Bank of St.

Gateway Airlines, Inc.

for

Inc.

Weld & Co.

Corp.

initial

received

Inc.
and
Lehman
Brothers (jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc.; Stone & Webster Securities
Corp.; The First Boston Corp. and Smith, Barney & Co.
(jointly).

year.

and

be

Puget Sound Power & Light Co.
May 15, Frank McLaughlin, President, announced com¬
pany plans to issue and sell first mortgage bonds latex
in the year. Underwriter—To be determined
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

was

Boston

Dunne

Bros.

Underwriter—

and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear
Stearns & Co. (jointly).
Bids—Expected later in the

Co.,

of

for

City Power & Light Co.
reported that the company plans to issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey

be

it

Probable

debentures due 1984

$100

of

from

principal

determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc. and Kidder,
Peabody & Co. (jointly); Blyth & Co., Inc. and Lehman
Brothers (jointly); White, Weld & Co., and The First

was

Co., Merrill
White, Weld &
Harriman Rip¬

that the company plans to re¬

announced

was

ceive bids up to noon

Kansas

it Florida Power & Light Co. (11/17)
Aug. 17 it was reported that the company plans to file
with the SEC $20,000,000 of first mortgage bonds. Pro¬
ceeds—To help finance the company's construction pro¬

•

Aug. 1 it

Smith, Barney & Co., N. Y.
Dec. 29 it

July 30 it

Pittsburgh & Lake Erie RR.

Corp. (9/15)
that the company, subject to
conditions and required stockholder

announced

was

stockholders

to

—None.

Underwriter—To

&

Oct. 14.

Last bond issues were placed

amount of convertible subordinated

approved on July 14, the offering of 108,904 shares of
capital stock to stockholders of record Aug. 7, 1959;
rights to expire on Aug. 28, 1959. Price—$30 per share.
Proceeds—To increase capital and surplus. Underwriter
new

gram.

Co., Eastman Dillon, Union Securities
Lynch, Pierce, Fenner & Smith Inc., and
Co. (jointly); The First Boston Corp. and
ley & Co. (jointly). Bids—Exoected to

Telephone Co.

will

consent,

stockholders

the

and

Underwriter—None.

Chemical

Hooker

Aug. 4

favorable
June

competitive bidding: Probable bidders: Halsey, Stuart &
Co. Inc.; Equitable Securities Corp.;
Kidder, Peabody &

share of common

new

help finance the company's con¬
Underwriter—To be determined by

program.

privately.

New York.

Federation

one

shares held.

$4,500,000 of new bonds.

reported that the company m the

next
few months expects the issuance ana sale of about $2,000,000 of debentures. Underwriter—D. H. Blair & Co.,
15

of

basis

Aug. 3 it was reported company received approval from
the Territorial Public Utilities Commission to issue about

Essex Universal Corp.

June

the

on

stock for each seven

20,300,-

Proceeds—To

bonds.

struction

be offered first to

stock, to

209,000 shares of common

increase the authorized

preferred stock to 1,000,000 shares from 472,229
and the common stock to 25,300.000 shares from
000

Telephone Co..

Aug. 3 it was reported company has received approval
lrom the Territorial Public Utilities Commission to issue

year.

Underw.'iter

Piadeip.ia Electric Co.
(10/14)
Aug. 5 it was reported that the company is planning to
file with the Securities & Exchange Commission ana the
Pennsylvania P. U. Commission $50,000,000 of 30-year

late Sentember.

Equitable

Thursday, August 20. 1959

.

.

—Blyth & Co., Inc., New York.

plant facilities, and for hiring more engineers. Office

of

.

Proceeds—For capital expenditures.

share. Proceeds—For working capital and expansion

per

\

Financial Chronicle

issue

On

the

slated

•-

on

to

.*

day

market

debentures

Stores Inc.
New

tap.

same

of

bankers
$10

are

million

Broadway-Hale

Monday Cincinnati,
Orleans, Texas &
Pacific
on

Railway is opening bids for $4,440,000 equipment certificates and
United

to

latter

but it in funds to meet demands

to

S.

"rich"

of customers. Non-redeemable for

mon.

Artists Corp.

is scheduled

market 100,000 shares
.

.

-

of

com¬

Number 5874

190

Volume

Continued

from

.

.

The Commercial and. Financial Chronicle

.

assist

14

page

are

resources

and

available

for

facilities

combines

activities

such

in

the

be

fairly

and resources

over-all

types of mathematical program¬
ming furnish excellent tools which
have
come
to
be
most closely
associated with allocation prob¬
An

lems.

attempt to apply these
programming
methods to mobilization planning
mathematical

begun in 1948 by the United
States Government. The agencies

was

involved

not only the
Statistics, but
Munitions
Board, The
Security
Resources

included

of

Bureau

the

also

National

Labor

and the military services.

Board,

Series

of

equations

alternative

each

sent
total

repre¬

can

and

the

such alternatives
can be solved by the methods of
matrix
algebra
to
yield
an
"optimum" allocation. Many oper¬
ational difficulties exist, especially
those connected with securing of
of

array

-

other

and

cost

types of data re¬

quired from the various industries
in order to arrive at a satisfactory

equations

and
the matrix.
The
components of the matrix
may consist of the total quantity
of selected specific materials re¬
expression

the

of

development

the

of

quired to turn out the goods and
services
programmed
with the

probable supply of these materials.
The
quantity of manpower re¬
quired to turn out the goods and
services
programmed
may
be
compared with the probable sup¬

ply of labor. Total plant capacity
of specific
types may be pro¬
grammed
with
the
probable
capacity available.
v,
There

.

,

be other criteria-,

may

of effectiveness, than

measures

or

cost—such considerations as time,
location
also

factors

may

measuring

effi¬

other

and

in

used

be

ciency of goal implementation. In
order
to
measure
effectiveness,
have

must

one

though such
is

measure

a

of the

of the objectives, al¬

importance

a measure

the

in

case

sciences.

social

intuitively
appears |to
be

there

speaking,

a stronger
analogy. For example, let us com¬
pare
the
social
sciences
and
medical

science.

medical

In

re¬

generally,
biological research, the differences
search,

and

the

between

m ore

-

^individuals

proofs

of

under

the

and

Centralized

thermore,
fluid

and

theories.

ments

But

the

of

[(controlled experi¬

important because they
the
scientist
to
develop

are

enable
and

subsequently confirm or re¬
ject theories on the behavior of
the system studied.

methods

an

Offering Completed

difficulties.

Fur¬

happen

may

share. This offering has been
completed, all of the said shares
per

having been sold.
The company was
organized un¬
on
March 9, 1959, and is
qualified to do business in the
State of New York. It maintains

flow

its

of

components, and outputs
principal executive and sales
enterprises offices at Commack Road, Cornmay lead to
many inefficiencies. mack, Long Island, N. Y.
The company is engaged in the
Probably
some
local
initiative
permitted

allow

to

the

benefit from local observations to
and also the

applica¬

tion of specialized knowledge and

important,

This allowance is quite
for probably seldom

does sufficient information trickle

business

of producing
and sup¬
plying ready-mixed and dry batch

concrete for

in

use

the

opportunity
periments.

There is

that

lihood

computers

ex¬

strong like¬

a

digital
and analog
be used to carry

can

"under

out

possibility at

the

on

of conductive controlled

least

glass"

it

as

the

were

experiments desired by scientists.

However,
tion

must

models

of

have

analog

or

economic

the

studied

be

to

following reserva¬
be kept in mind: Ade¬

the

mathematical

quate

to

situation

be

devel¬

also
assist by trial-and-error to detect
any
errors of
omission or com¬
oped. Here the computers

mission of

types
of
construction, including the con¬
struction

of

residential

commercial

and

ings and warehouses, and

can

compromise between the two

ex¬

tremes, where a central control
point is able to coordinate its ac¬
tivities

with

the

scattered

of applications of the

programs.

risk

of

points
policies and
is the

Also important

building

up

bureaucracy and
of
developing
certain
habits
that
would tend to persist even after
emergency

risk

especially

national
war

has

is

passed.

apparent

emergency

of

of

over

of

1952

and

building
in

the

the

develops

that

lems

serious

in

are

supplies

multi-stage

a

to

order

obtain

end-products

of

in Period

Several assumptions may have to
made

economic

in

systems,

often

involve

Many

socio¬

which

quite

of

random

City,

to
business.

Broadway, New York
in

engage

securities

a

With W. G. Nielsen Co.
(Special to The Financial Chronicle)

BURBANK,

Calif. — Earl D.
Van Keuren has become affiliated,
with W. G. Nielsen
Co., 362 East
Olive Avenue. He was
formerly'

White, Weld & Co.
DIVIDEND

NOTICES

MIAMI COPPER COMPANY
Broadway, New York 6, N. Y.

quarterly dividend of fifty (50#)
cents per share was
declared, payable
September 25, 1959, to stockholders of
record

BRICCS fir STRATTON

at

the close of business

Septem¬

ber 11, 1959.
JOHN

G. GREENBURGH,

Treasurer

(Briggs&StrattonL

L I. DU PONT DE NEMOURS

PORTLAND,

valid, but their
to

re¬

Hill

W.

analyses

can

Oreg.

joined

Robert

—

the

staff

was

has

declared

Wilmington, Del., August 17,1959

a

payable September 15, 1959,
record August 28,
1959.

formerly with Foster

The Board of Directors

has declared this

day regular quarterly dividends of $1.12%
a
share on the Preferred Stock—$4.50

87'/i#

Series

and

ferred

Stock

to stockholders

of

—

a share on the
$3.50 Series, both

Pre¬
pay¬

24, 1959, to stockholders of
the close of business on Oc¬

able October

of

Blyth & Co., Inc., Pacific Build¬

sometimes be satisfac¬ ing. He

Sensitivity

has

Directors

of

Board

regular
quarterly
dividend of fifty cents
(50c) per share and an extra dividend of
twenty cents (20c) per share on the capi¬
tal stock ($3 par value) of the Corporation,

Joins Blyth Staff

(Special to The Financial Chronicle)

processes.

approximation

of

The

k

&C0MPANY

DIVIDEND

heeded.

are

assumptions * may

these

turn out not to be

may

with

dealing

REG NEK. Secretary-Treasurer

L. G.

record

18,

August

at

9, 1959; also $1.50 a share on the
Stock as the third quarterly in¬

tober

Wis.

Milwaukee,

Common

1959

terim dividend for

1959, payable Septem¬

14, 1959, to stockholders of record at

ber

& Marshall.

the close of business on August 24, 1959.

DIVIDEND NOTICE

The Board of Directors

P. S. du PONT, 3rd,

of

Secretary

CONSOLIDATION
COAL

The Garlock

COMPANY
meeting held

a

the Common Stock

AMERICA'S FIRST TOBACCO

MERCHANTS

ESTABLISHED 1760

•

able
ers

on

August 12, 1959

of the Company, pay¬

COMMON DIVIDEND No. 3 3 3

September 11, 1959, to sharehold¬
at the close of business on

of record

August 28,

1959. Checks will be
John Corcoran,

mailed.

Vice-President & Secretary

August 17, 1959.

At

meeting of the Board of DireC'
held this day, a quarterly divi-

a

tors,

dend of 30# per share was declared
on
the common stock of the Com'
pany,
to

as

payable September 25, 1959,

stockholders of record at the close

September 11, 1959.

of business

in

?—'

crANAMXP

H. B. Pierce,

output

6, for
mate¬

Secretary

AMERICAN

rials may

Period

would

5,

Period 2. This considera¬
tion of time staging as an element

during
in

programming

matter
'

of

a

is

subject-

the

relatively

new

area

"dynamic programming" in
contrast
with
"static
program¬

called

ming" which looks at one period
at a time only rather than at a
series of such intervals.

DIVIDEND
Regular quarterly dividend of
ferred Stock and regular
share

to

and

inappropriate to conclude
of the possible political
economic
consequences
of

be

with

close of business Septem¬

G" °- DAVIES- Treasurer

York, Au9»« T9, 1959

Cigarettes
OLD GOLD

STRAIGHTS

Regular
Crush-Proof Box
OLD

GOLD

FILTERS

some

such measures.

payable October 1, 1959,

1959. Checks will be mailed.

The foregoing

not

share an the Pre¬

King Si?e

KENT

NEWPORT

Regular
King Size

King Size
Crush-Proof Box

EMBASSY

Crush-Proof Box

King Sige

"

Smoking

Little

Chewing

T urkish

Cigars

Tobaccos

Cigarettes

and

Economic
BRIGGS

Consequences
'/

UNION LEADER

the great distinction
between the physical sciences and
In the past,

the

social

sciences

has




been

the

FRIENDS
INDIA

HOUSE

BETWEEN
THE

ACTS

MADISON

BEECH-NUT

MURAD

BAGPIPE

HELMAR

BLOSSOM

Company

Cyanamid

Manufacturers of

A

Stock

payable
the

of 50c
on

Company

at

the

September 1,

New York,

of

1959,

Board

KYLE. Secretary

August. 18. 195a.

of

/

Stock,

by the

Directors

on

payable

September 15, 1959 to
stockholders of record
'

on

1959.
sl

share

declared

June 8,1959

to

such stock of
close of business

per

Common

was

of the Company,

September 25,

holder's

record

REGULAR

QUARTERLY DIVIDEND

today
declared a quarterly dividend of
forty cents (40*) per share on
the
outstanding shares of the
Cyanamid

complete lin®
industrial

storage batteries.

DIVIDEND

COMMON

a

of automotive and

The Board of Directors of Amer¬

R.

HAVANA

BATTERI E S,

today
declared a quarterly dividend of
eighty-seven and one-half cents
(87 Vs?*)
per
share on the out¬
standing shares of the Company's
3 y2 % Cumulative Preferred Stock,
Series D, payable October 1, 1959,
to the holders of such stock of
record at the close of business
September 1, 1959.
ican

Common

Tobaccos

DIVIDEND

The Board of Directors of Amer¬

ican

'

Political

NATIONAL
PREFERRED

SPRING

King Size

G0UL

COMPANY

Stock of P. Lorillard

the outstanding Common

stockholders of record at the

ber 10,

per

quarterly dividend of 50# per

Company have been declared

N.W

has been a survey
of
one
aspect of Programming
Mobilization analysis applied to
defense economics, primarily from
the allocation standpoint. It may

on

CYAN AMID

NOTICE

$1.75

,

Packing Company

today, declared a quar¬
terly dividend of 30 cents per share on
at

the intermediate
have to be ready during
and the raw materials
have to be produced, say,

instance,

fices at 149

A

NOTICES

.

certain

Ralph
Madoff
and
Walt
R.
Wayne have formed a partnership
Wayne Madoff Securities, with of¬

and

a

allocating
resources,
both
and
human,
can
con¬
tribute to the increased efficiency
study the results on the system of the defense
program, provided
may give rise to fictitious results.
all the limitations of such tools

costly in terms

a

at

York

July 8, 1959

material

pro¬

be considered
process
where

New

Form Wayne Madoff Sees,

61

consumed and confusion
that may be caused. The flow of
can

Street,

a se¬

offices

since

of space

production

William

from

City.

CORPORATION

operation and inter¬
production.
Arrivals

ahead of time

build¬

production

DIVIDEND

best

Varying the different factors in¬
or
simultaneously to

tory.

en¬

Nevertheless, the application of

the assembly
with

business

dividually

degree

is

analytical tools to the problem of

gramming of production is timing.
Arrivals
behind
time
interrupt
fere

400

type which may continue in¬

prob¬

the

107

sale of concrete since 1953.

definitely.

pertinent factors in the

model.

be

Real

—

Inc.,

govern¬

The
in

cold-

Y.

Sidney Sole Opens

with

tion

N.

Plan,

Sidney Sole is conducting
curities

has been engaged in the distribu¬

war.

most

build¬

Profit

gaging in a securities business
from offices at 417 Utica Avenue.

ing supply products. The company

powerful

a

centralized

the

extensive line

consistency with the national

the

housing,

industrial

strategy relating to a hot or cold
of

Sstate

present

of all the objectives thus
be established. The solutions
should always be tested

One

diverse

back to the central control point.
mental and institutional projects
When information does reach it,
such as roads,
time, because it may be only
airports, schools,
approximate and
of
developments
in
electronic often belated.
hospitals, military bases, sewers
computer technology and of the
What
is
needed
for
effective and tunnels in addition to selling
art of economic research, the field
mobilization
programming
is
a to
the
construction industry an
of economics may
be given the
At

Real Estate Profit Plan
BROOKLYN,

ware

of millions of separate

ingenuity.

Broadway. New York City.

der the laws of the State of Dela¬

achieved
for

1472

culties arise. To attempt to impose
detailed
instructions on
output,

be

a

securities business from offices at

Singer, Bean & Mackie, Inc. on
probably Aug. 17
publicly offered 66,500
which can be shares of
class A stock (par $1)
■■■'.•"
of Certiifed Industries Inc. at
$4.50

during
emergency period, added diffi¬
as

be obtained

^chemistry)

and

objectives
are
production
methods

in

or

models

when

changing,

Henry Ludner Opens
Henry Ludner is engaging in

available

detailed control in¬

several

Certified Industries

39

answers

ones

used.

volves

are

inductive

only

must

physics

significance

these

checking the

are

the

such

as

of

many

study often may take away from
some of the universality
(such as

average
may

been

such was not

However,

frequently ality

obtain. A weighted

difficult to

the

universal,

testing

errors.

premises,

tjiat while the laws
physicahjsciences tended to

in

as

way

have

No

for

made, namely

to maximize
effectiveness.
Various

a

Planning

distinctions

Other

not

are

performing
each
activity in the most effective way,
a solution may be obtained which

;/

impossibility to carry out con¬
trolled experiments in the latter.

alternative

accomplishing them yet

of

ways

there

and

in

of the

Economic Mobilization
formed

(763)

A.

September 3,1959.
H.

DAGGETT

PRESIDENT

u: mmmm

40

Financial Chronicle

The Commercial and

(764)

BUSINESS BUZZ

Washington and You

.

.

Thursday, August 20, 1950

.

Businessman's

BEHIND-THE-SCENES INTERPRETATIONS

BOOKSHELF

FROM THE NATION'S CAPITAL

Flotsam, Jetsam, Dingbat,Twits,
WASHINGTON, D. C.—In a
^surprise move, the House Ways
and Means Committee on Aug.
18
decided
to
postpone
until
1960 any further consideration
of
the
proposal to raise
the
present 4% ceiling on fiveyear or
longer Treasury secu¬
rity issues. A companion feature
of the
proposed legislation
called for an
upward adjust¬
the

in

ment

Series

E

The

H

and

to

by
The

serted

Texas

that

by

which

cated

that

extreme

it

he

Ways

in

market than the

unrelated

not

that

the

Treasury

uled

the

financing
current

of

operations

said

than

market

confine

purchases

its

open-

to

Treasury
bills
primarily. However, the
Committee
subsequently
changed the so-called "Sense of
Congress" resolution in a man¬
that

ner

both

proved

Reserve

Martin

and

Anderson.

acceptable

Board

to

Chairman

had

been

in¬

sistent that the bill

drafted

as originally
inflationary and a

was

throw-back

preceded

to

the

in

accord

by

The

observers

some

by

small

investors

securities could

ment

oped
New

York

could

for

out

con¬

the

which

era

sented

over

Mr.

Martin

tions to

do

ever,

of

a

"an

engine

of

not

secondary

market

how¬

bonds.

Since
is

for

flation."

features, such
designed
Scrutinized

government

security

not

set

for

United

is

evoking

more

because the government securi¬
ties market is the
largest finan¬
cial

market

in

the

world.

edges -that
volume

the

daily

exceeds $1

trading

billion.

The bonds of the

government
sensitive.
They re¬

quite

spond to international develop¬
ments, policies of the govern¬
ment

like

and

the

Interest
bonds

business

stock

are

generally,

market.

earnings on Federal
not subject to state

income taxes in most States. In¬
terest
earnings on state and
local bond issues are not
subject
to

Federal

the

taxes,

Federal

the

bonds

are

but

taxes

tax-free

are

state

and

creating

more

competition

Sam's

bonds.

because
so

high
local
and

more

for

bonds

Exchange

minimum

as

States

they do

securities

,

of

other

(1)

in¬

term

market¬

to

Government

tax

Uncle

i

establishing
auction-type market in Gov¬
securities

on

change. But problems
mediately raised..
specific
resolved," said

the

Ex¬

were

im¬

the

to

be

Treasury-

Federal Reserve study, "was the

difficulty

under

existing con¬
interesting Exchange
specialists in taking the business
risk
of
making a market in
; Government securities.
In the
ditions

of

encourage

holdings

the

A

in

Martin

larger

four

The

Government
is

the

-

largest

financial market. The New York
Stock
Exchange

apparently is
becoming interested in re-estab
¬

lishing

an

auction-type

market

in Government securities

Exchange.
The
are

over

-

the

handled
-

the

securities

by dealers in

counter transactions.

The

Treasury Department and
the Federal Reserve System re¬

cently

completed

a

study


http://fraser.stlouisfed.org/
\
Federal Reserve Bank of St. Louis

very

par¬

having

interest

investors

through

other

be

into

(paper),

Reserve

potential

in

on

the

trades

in

bonds in

Govern¬

are

firms to

stances.

(4)

Provide

a

means

ernment

act

now

of

securities

as

its

the

ma¬

rising

state

and

excess

municipal

of 31/2%.

economists

in

There
Wash¬

rates

will

edge

even

[Th'.s column is intended to re¬
flect the "behind the scene" inter¬

pro¬

mem¬

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

Gov¬

dealers.

Gov¬

25c.
;

Y

Buying

V

.

for

"

Jobs

Economic

—

Department, Chamber

Commerce

of

the

Washington

United

6,

D.

C.

Y

Purchasing Publications, Penton
Building,
Cleveland, Ohio —
On

request.

Strategies That Close Sales—John
A.

MacDonald

Inc.,

-70

U.

S.

—

Prentice-Hall,

Fifth

Avenue, New
11, NYY—cloth—$4.95.

York

Import

tural

Duties

Products

Market

Agricul¬

on

1959

Foreign

—

Service,

Foreign
Division,

Information*

U.

S. Department of • Agricul¬
ture, Washington~25, D/C. -

When

Family

a

Elizabeth

Faces

Cancer

—

Ogg—Public " Affairs

Pamphlets, 22 East 38th Street,
New York
16, N.YY. (paper),
25c.

Writing

and

Technical

Publishing

Book—F.

New York

Your

W.

Corporation, 119 West

Dodge

40th

St.,
18, N. Y.—on request.

Attention Brokers and Dealers:

TRADING MARKETS
Botany Industries
Mills

Official Films

t

Southeastern Pub. Serv,

positions in Government securi¬

ties, since the market, in

con¬

trast to the market for securities

of

individual

corporations, is

quotations

throughout
move

the

list

tend

to

20

BROAD STREET

TEL: HANOVER 2-0050

tions at Exchange trading posts,
the specialists in taking posiU.*?

Co. Inc.

Our New

York

telephone number I*

CAnal 6-3840

•

NEW YORK 5,

N. Y.

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

Finally, because

of the public nature of transac¬

&

FOREIGN SECURITIES SPECIALISTS

maturities

on

together.

Carl Marks

a

V

-

•

\

.

Habits

—

Agricultural

higher in the autumn months.

exceptional t circum¬

ber firms that

some

terest

board"

tecting the interest of the

in

and

ington that believe that the in¬

Exchange,

"off

shorter

Meantime, United States Gov¬
ernment
long-term
bonds are
now yielding around
4%%, and

requirement

transactions

executed

and

turity structure,
public debt.

tax-free

United

of

Reading Habits Among Industrial
Buyers
Survey — Associated

problems which this
country faces, such as the tend¬
ency of the public debt to grow

act

Govern¬

the

(paper), 50c.

financial

special

Banks

Committee

mechanisms
study
quite helpful, it cannot
to solve the basic

be

of

in

—

Economic

expected

shorter

ment bonds of member
be

(paper),

American

States,

Y.

market

will

Exchange market.
A

C.
,

of

large

heavy volume market and, when
sharp price movements occur,

*

Government

now

on

up

C.

Census

Indian Head

build

—

U. S. Department of
Labor, 341 Ninth Avenue, New
Y.—$1.
Y

Seen Rising

with estab¬
Government
securities

to

D.

Summary

Investment

"Secondly, they might at time
need

Dakota

series—1957

a

Finances

Change

inves¬

securities

world's

North

York 1, N.

Congress recently that while

the

of long-

bonds,

or

of

Placing
of
all
Federal
transactions in bonds,

all

said.

study

the- Joint

possibly, official support of the
(3)

small

Treasury-Federal
group has been
working continuously since last
spring. Secretary Anderson told

'as agents, on the Exchange, and

for

D.

How

joint

Reserve

and

listed

supply

those

exemption

the

among

dealers.
market

Book,

—

wide¬

competition

lished

Data

Commerce
Superintendent of
Documents, U. S. Government
Printing Office, Washington 25,

marketable

officials

Rates

The

Anderson

Government

where

more

of

first place, the specialists would
be

for

Government Printing Office,

Research

except for possible

problem

re¬

ernments, U. S. Department of

market.

individual

(2)

"One

tors,

in

Reserve

Stock Exchange reviewed

ernment

prevailing

to

securities

competitive with

features.

corporate

the potentialities of
an

able

spread

schedule

specific

ticularly

do

Growing out of the TreasuryFederal Reserve
study, the New

in

States —1957

toward
developing an
trading of United States

needed if it is considered desir¬

points that they
say are necessary for an effec¬
tive Exchange market. They are:

special

Problems Outlined

York

dealer

Chairman

commissions

for

be

spreads

Secretary

mar¬

rules

countries

Gas

6, No. 32 of

mental

Ex¬

on
the Exchange.
Cer¬
tainly additional study will be

the Exchange

on

commission

Stock

bonds

Necessary Essentials

."

.

studies

active

Interest

The

Treasury Department acknowl¬

are

issues.

-and

study by Congress, simply

market
more

able

the

by

wider

ownership

a

that would

tax exemption,

as

attract

to

dividual

with

other

as

narrow

volume

Treasury issued

securities

by

long-

trading

small,

and

York

has indicated a will¬
ingness to cooperate in further

are
other problems
developing an adequate
incentive for handling Govern¬

effective

assure

raids

New

change

There

such

the present Exchange as

ketable

in¬

dealers

be

traders."

ment securities

characteristics,

unless the

policy of supporting

prices of government bonds
the par level and hence was

The

large

The

con¬

would

to

exposed

nonmember

ob¬

at

Market

unduly

the nation

orderly and

markets

through

"These

use

make

tinuous

servation:
,

on

40c.

pre¬

this

and

Historical

proposal

made

by

Washington 25,

buying and sell¬
ing orders. Then, Mr. Anderson

and

(paper),

Census of Governments, U. S.
Department of Commerce—Su¬
perintendent of Documents, U.

idiot—not GO!"

S.

for generating

individuals

when the Board

you

these securi¬

the

basically

GROW,

worked

include the Exchange marketing
mechanism with more than 2,500

scattered offices

States

Facts

Vol.

place alongside the

in favor of this

N. Y.

Government

ties.

term

Treasury-Reserve

1951
a

fig?

be devel¬

advantages

20,

sociation, 420 Lexington Ave¬
nue, New York 17, N. Y.— $3
(quantity prices on request).

floor trading in
Government securi¬

Asserted

on

1959 Edition—American Gas As¬

active

long-term

Brochure

—

Washington 25, D. C. (paper).
Gas

Govern¬

be

C.—

the calendar year 1958—U. S.
Department of Agriculture,
Foreign
Agricultural
Service,

effectively on the
Stock Exchange, if

more

Streets,
D.

request.

Market

United

report

are

in

25,

Foreign Agricultural Trade of the

Re¬

number

a

Washington

quest.

of

Board

might be insufficient to permit
matching of
bids
and
offers

followed

York

Mar¬

Federal

Monetary

H

opportunities in vari¬
ous
fields—Publicis
Corpora¬
tion, 610 Fifth Avenue, New

Treasury Secretary
Both

Street,

—cloth—

Y.

business

vinced that market participation

dealer market for

rather

signed

securities.

Federal

quired to step in and buy gov¬
ernment securities of all types

the

in

149th

N.

and

European

observations.

arrangements

re¬

re¬

19th

paper—on

thing the report noted is

ernment

for

be

printed

raises

ties to take

Board

colleagues

the

the

Originally,
the
Committee
proposed,
as
an
adjunct
to
upping the ceiling rate, that the
Reserve

N.W.,

the lack of facilities designed to
serve
small invsetors of Gov¬

is

year.

East

55,

International

x—

Committee

McChesney

of

pertinent
One

Department

calendar

tan

Fund,

report,

System,

serve

any

has completed most of its sched¬

joint

Chairman of

tin,

with

too,

special

a

Governors

capital

factor,

Means

William

man

indi¬

decision to put

391,
York

of the

Secretary Anderson and Chair¬

off any further action until 1960.
A

Banking

William-Frederick

Economic Developments in Pakis¬

Mills

D.

committee

in

The

as¬

approved

the

The

—

Press,

have been studying the findings
of the joint inquiry which are

session would be likely to cause

confusion

his

and

attempt to seek approval at this
more

Wilbur

and

port.

reasoned,

Cole

New

(Democrat of Arkansas)

opposition in Congress.

Accordingly,

of

District of Columbia—David M.

prevent speculative

and

Chairman

intro¬

meet

way

Development

ADVERTISING

Report Being Analyzed

Frank

Committee
would

the

Pumpernickel, Poodle and Ploop

Among

the

$10.00

15-to-10

been

the

by

study was to
to improve the

things

excesses.

the compromise

had

proposal
earlier

slim

market.

other

point

the

Democrat

the

ment securities

borne

was

Congressman

functioning of the Govern¬

market

on

shelve

1960

until

measure

Xkard.

return

of

,

bonds.

motion

duced

vote

rate

the

10 Post Office Sqaarer3osfon 9, Mass.
Telephone

*

HUbbard 2-1990

- -

,

"

-

'

Teletype
BS 69