Full text of Commercial and Financial Chronicle : August 27, 1959, Vol. 190, No. 5876

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ESTABLISHED 1839

o%,
°k>

ana\x

Chronicle

Financial

Reg. U. 8. Pat. Office

Volume

190

Number

New York 7, N.

5876

EDITORIAL

Changes in Key Factors in

If

Murphy asserts stock market experts are viewing the
rises

recent

mixed

with

emotions,

accentuating

quest

the

for more lucrative investment outlets abroad, in addition to

^Canada.

Cites

requisites for private foreign

basic

the

as

^portfolio investment by Americans: (1) profit potential com-

C mensurate with the added risks; and (2) investors' aware*
ness of such opportunities. Concludes conditions are now

^

ripe for taking advantage of such investment

opportunities,

Common Market, and the develop*
world's underdeveloped areas.
Suggests the

accentuated by both the
of

"ment

the

trust technique

investment

propriate agents for facilitating the use

in

vance

of

more

points

80

place.,

Stock

prices

vidual

issues

have

even

centage
shared

the first

prices shows. A large per¬
of equity securities have
in
the
general price ad¬

few, in comparison to the
publicly-traded
issues,
have
shewn downward trends in this great,

vances;

total

bull

market,

which

the

at

time

*

experts
with

td frequent postings, market
are

viewing

the

movements

Thomas T.

Murphy

Many
of the traditional warning points are studied with great
care.
Odd-lot trading figures are plotted and subjected
to
careful
scrutiny for clues regarding the turning
mixed emotions and forecasts.

points (if any) ahead,

investment

Immense

on

page

NOW IN REGISTRATION—Underwriters,

SECURITIES

DEALERS

securities

Continued

22

are

afforded

a

page

environmental

Lists

prices.

tial undertakings in our

"Securities in Registration"

Distorts the savings-

actually

factors

Housing,

State and

exerting pressure on profit margins and selling
Inflation
is

there
of

is

the

public
will

money

enemy

expectation that the purchasing power
continue to decline. Inflation impairs
growth: (1) Because it increases in¬
stability—high levels of activity can¬
not
be
sustained
for
long whep
inflation is expected to prevail; (2)
it

fosters

vestment

STATE

and

MUNICIPAL

BONDS

The Free World has had abundant

experience with all of these hazards
in the postwar years. The lessons of
that
experience
are
unmistakably
clear for all who wish to heed.
In

Winfield W.Riefler

particular, Germany prior to 1948, Great Britain prior to
1957, and France prior to 1959, each struggled with in¬
flation-induced instability, with misallocation of capital,
♦A

presented by Dr. Riefler at the Stanford Business Con¬
Stanford, Calif.
Continued on page 24

paper

ference,

SEC and poten¬

State, Municipal
*

Lester, Ryons & Co.
623

So.

Hope Street,

BROKERS

•

/

OF NEW YORK
Bond Dept.

To

T.L. Watson&Co.
'

1832

ESTABLISHED

Members

Investment

Exchange

Stock

Exchange

American

BROAD

STREET

NEW YORK 4, N.

Y.

SouttuveAt COMPANY




Banks

•

Beach,

Ana, Santa Monica

the

Chase Manhattan

Southern

BANK

Securities

PERTH A.MBOY

New York

Correspondent—Pershing & Co.

Maintained
and Brokers

canadian

CANADIAN

securities

MunicipalBonds

BONDS & STOCKS

Inquiries

FOR

CALIFORNIA'S
CIVIC

IMPROVEMENT

Invited

Commission Orders Executed
Canadian Exchanges

On All

CANADIAN DEPARTMENT

DIRECT WIRES TO

NY 1-2270

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

-BRIDGEPORT

DEPARTMENT

Riverside,

Markets

Active

Teletype

25

San Diego, Santa

Inquiries Invited on

Teletype: NY 1-708

Dealers,

Block

New York Stock

Securities

Exchange

Exchange

Pasadena, Pomona, Redlands,

California

Net

Distributor

Dealer

Bends and Notes

STOCK EXCHANGES

STREET, NEW YORK 5, N.Y.
• Dl 4-1400
CO BURNHAM
TELETYPE NY 1-22B2

15 BROAD
CABLE:

Agency

Exchange

Encino, Glendale, Hollywood. Long

DEALERS

YORK AND AMERICAN

;

Public Housing

BOND

Burnham and Company
MEMBERS NEW

;

Offices in Ciaremont, Corona del Mar,

BANK
ST^N.Y.

California

Associate Member American Stock

THE FIRST NATIONAL CITY BANK

department

17,

Los Angeles

Members Pacific Coast

corn exchange

DALLAS

encourages

international trade.

Members New York Stock

CHEMICAL

FIRST

and

process

overspeculation; and (4) Because it
undermines the country's position in

Section, starting on page 30.

,

HAnover 2-3700

•

misallocation

dealers and investors in corporate

UNDERWRITERS

Underwriter

the

capital and impairs the quality of
the managerial and investment deci¬
sions on which growth is based; (3)
Because
it
distorts
the
saving-in¬

of

and

Municipal

30 BROAD

prices.^

particularly when

of growth,

Because

-

bond

promoting

and avoidance of rises in unit costs

broadly distributed;

20

Securities
telephone:

'

rising unit costs; with the benefits of rising productivity

of

U. S. Government,
Public

'

of over-

reflection of growth efficiencies in falling instead

policies;

complete picture of issues now registered with the

in

:

man¬

growth, as the flexible adaptation of fiscal and monetary

the in¬

on

sound

position. Cites past periods of growth during falling

trade

improvement.

have been expended by

obstructing

speculation, and (4) undermines the country's international

dustry in recent years to take advantage of tech-

The yield patterns of high grade
Continued

sums

impairs growth,

harmful encouragement

with

process

any means.

the bottom of much of that

capital,

agerial and investment decisions, (3)

the average for all manufacturing. As
for the current year, they are better,

writing,

of

misallocation

fosters

Indeed, they fall somewhat below
to results
of course,
than for last year or for a number of years, but
everyone knows that heavy purchasing by con¬
sumers in anticipation of a strike stoppage is at
by

of

has reached a DowJones Industrial high of 675.
As new market highs are subject
this

System

(1) It increases instability, (2)

following reasons:

workers in this country are among the
best paid in the land, as practically every¬
one knows. They have been able to improve their
economic position about as much as any other
group of wage earners, and that, too, is well
known. Steel profits have been relatively good
for a number of years, and that is a fact of com¬
mon
knowledge. When measured against net
worth in the business they do not stand at the top

aver¬

Board of Governors of the

Reserve Board economist maintains inflation
for the

very

of many indi¬
advanced to an
any

the Chairman,

Steel

advance
taken

has

greater extent than

of

age

And, in 1959, through

another

year,

than

ad¬

in recent years. The year
Dow-Jones Industrial Average ad¬

the

115 points.

the

of

half

saw

some

unprecedented price

an

securities

equity

alone

1958

vance

witnessed

has

America

to

Federal Reserve

at least in a general way to the public at
large. - The union leaders have contended all
along that the facts justify their stand—and now
that the facts have been compiled they find them
supporting their cause. The same is, of course, to
be said for the steel industry.

of funds abroad.

S !■

By WINFIELD W. RIEFLER*
Assistant

deed

and investment bankers as ap?

Copy

a

Illusions About Inflation

harbored the notion that the

surrounding the prolonged steel strike
would serve to bring about a settlement, he must
by now be well aware of his error. The Federal
Government has made available to the public a
specially. compiled set of statistics concerning
profits, wages, productivity so-called, and related
matters. There can be no question that the com¬
pilation of these figures was competently and
dispassionately done, but they contain—could in
the nature of the case contain—nothing that was
not familiar to all informed observers, and in¬

Assistant Dean, University of Notre Dame /

Dean

We See It

ever

"facts"

By THOMAS TIMOTHY MURPHY
*->•

anyone

Cents

Dispelling Some Popular'

As

Foreign Equity Investment

50

Price

Y., Thursday, August 27, 1959

115 BROADWAY
NEW YORK

l°N0RTH

Do>umo?c Securities
(orporatiozi
40Exchange Place,New York5,N. Y.

LA SALLE ST.

CHICAGO

Teletype NY 1 -702-3

WHitehall 4-8161

MUNICIPAL BOND DEPARTMENT

Bank

of

America

N. T. & S. A.

San Francisco

Los Angeles

mm

2

The Commercial and Financial Chronicle

(826)

For

The Security I

Banks, Brokers, Dealers only

Like Best

A continuous forum in which, each week, a

Call "HANSEATIC"

in the investment and advisory

different

(The articles contained in this forum are not

department offers

Trigger-quick
reaches

service and
broad

a

they

are

range

FREEMAN

of

be regarded,

to

Jim

JR.

Assistant Vice President

nation¬

our

Johnson, Lane, Space and Co., Inc.,
Member

wide wire system.
To make

Jim

you're getting
possible coverage,

Walter

believe

"the"

and

last

the

while

Associate Member

Exchange

n—

the

at

net

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Wires to Principal Cities

profits al¬

The

Trading in the low 30s, with in¬

approximately
outstanding,- the
Jim Walter Corporation is selling
at
a
price/earnings ratio kneehigh
to
most
"growth"
issues
whose
net
has moved
sideways
compared with Jim Walter's rec¬

Cor-

Walter

BONDS

Freeman N.

Jelks, Jr.

poration

•f

stands like

Goliath in the boom

a

WEST VIRGINIA

field of "shell"

VIRGINIA

ideally suited to the
one-half of the, United
States but little known north of

housing,

type of

a

construction

NORTH

CAROLIN

SOUTH

southern

CAROLIN

Mason-Dixon line.

the

logically
"shell" of a house,
family dwelling,

Shell v houses

enough, the
normally
a

call

&CO

$1,061,873

RICHMOND.

VIRGINIA

the

on

interior

the

while

outside

con¬

17,089,623

in price from $995

to a

carries

Handles Own Mortgage Paper
The
as

Walter

Jim

much

million.

new customers.

handles its

pany

it's

smart

place

to

advertisement

your

in

of

housing
buyer must
the

★

THE COMMERCIAL AND

FINANCIAL CHRONICLE

The

a

com¬

Jim

paper.

not sold as

parts

developments;
the
own the lot on which

house

is

The

built.

Jim

Corporation takes a mort¬
a
shell house which it
builds, the land on which the
house is built, and the improve¬
ments
which
the
buyer
must
necessarily make to the house to

it

make

mortgage,

which
the

as

this

of

type

in

increases

owner

of

the

house

completes his home, is borne out
by the record: repossessions due
forfeited

to

mpjrtgages have

considerably

MAILING

company

profit

of

less

has

made

$400

I

w

e

can

supply

I

I

your
complete
quirements.

»
I

features

I
»

DunhilPs

5,000

tested"

I

lists

Canada

&

limited.

Write

will, of course, be due to the an¬
ticipated
continued
increase
in
But
the profitableness of

sales.

copy

list

re¬

to Dept.

catalog
"qualitythe U. S.,

America.

today for

Edition

your

free

SM.

I

of

management

Corporation

capable

.

LIST CO., INC.

444 Park Ave., South

New York TWX N. Y.
16, NYL

MU.6-3700




that

not

if

sales

level off,

reason

do

would

for

should

(Which
profits

anticipate),

nonetheless show

increases

itable rate.

Lines of credit

approach

use

a

loss

most

believe

I

like

to

add

after

rate

of

$800,000

taxes

in

substantially
We
will

result

to

To
pany

that
in

the

rest

bond

of

Carl Marks &

.

the

Tokyo, Japan
Brokers

&

Walter himself is 36 years of
age,
and the average age of the
executives of the company

proximately the

same.

3153

is ap¬

Our

has become very close to the

agement

in

the

two

years

we

participated in the first
public offering of the
pany's
securities
in
1957,
them

The
has

be

an

man¬

since
gen¬
com¬

and

outstanding

men.

Jim

more

to

firm

75

Corporation

offices stretch¬

INSURANCE

LIFE

STOCKS
$

J

If you can't find a

*

#

home for certain of your

*

Company, Inc.,
City

Mexico, S. A.

This

hereafter called

company,

established in

1950

:

by consolidation
Telefonos

of "Empresa
Mexico, S. A.,"

de

de
an

affiliate of the
L. M. Ericsson

of

group

S

kholm,

1 o c

Sweden,

LAMBORN & CO., Inc.
9 9

Tel egraf

M

Dividend

stock

Increases

dividend

The

on

has

been

the

t

increased

five

ent

20c

quarterly.

I

be¬
Jack

one

of the

H.

in

Jost

37 V2 %

most attractive

income

connection

with

a

unit

offering of stock, bonds and

war¬

the company was vir¬

bonds

100-105.

interest
til

the

in

out

their
to

a

investors

new

Exports—Imports—Futures

DIgby 4-2727

st

a

o c

company

k

un¬

hovJR W

when

1958

August

they sold
of
3,179,05S

holdings
syndicate of Mexican-

for

reported

a

US $24,615,446.

price of $7.75

per

This

amount

equals

share,

a

the

cum.,

May 1959 dividend of 80c.
total purchase

are

trading

around

Overall interest to banks,

financial

institutions

1

the

and

bonds

was earned some four times
in fiscal 1959, and after
deducting
interest to banks and financial in¬

stitutions,
bonds
some

interest

on

outstanding
10 times.

assets

the

9%

earned

was

The amount of net

available

for

the

approxi¬
$6 ¥2
million
in
bonds
presently outstanding is in excess
of $2,000 per
$1,000 bond. If the

Of the

syndicate
cash

paid
the

with

price, the Mexican
US $5,531,558 in

balance

(each

1959

1,

US

payment

TELMEX, with corporate domi¬
cile

of

198 Parque Via

at

City,

Mexico.

the

the

serves

As

in Mexico

entire
of

Republic

Dec.

31,

would
each

book.

be

bond

added
at

charges

were

column

to

the

there

value

of

least

$1,000 more.
up to an out¬

figures add
standing income security

in

my

them

in

in

over

roughly

1,800

million

miles

wire in urban cables and

of

The

management

aggressive.

is

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
20-Year Performance of
35 Industrial Stocks
FOLD

Eli

ON

REQUEST

employs

8,052 workers.
and

N. Q. B.

1959

listed 426,413 tele¬
service, about 50% of

company

the capital.
It operates
315,000 miles of long distance
circuits, 536 telephone centrals;

assets

«

saving^

$3,816,777.60).

unearned

times

*

payable in

phones

the

f

O

five annual instalments beginning
Julv

mately

to

Liquid

each

retained

Debentures

The Jim Walter 9% Debentures,
Dec. 31, 2000, are certainly

—

In-

an

national

Ericsson

likely.

due

Refined

—

I. T. & T. and

lieve that continued increases are

9%

Raw

Telephone and
Telegraph
subs idiary.

last two years, being
that time to the pres¬

of

rate

A.,"

e r

SUGAR

ica

xican a,

e

S.

common

times in the

Coast,

South

5, N; Y.

and

the"Compania

These

Georgia,

STREET

WALL
NEW YORK

Telefonica &

of
approximately 50%
a
compounded which we antic¬
ipate.

ing like a blanket across 16 states,
from the southern half of the East

(Florida,

Bankers

1960s.

crease

added

Walter

than

Investment

111 Broadway,N.Y. 6 COrtlandt T-S680

New York

in¬

tually unknown).
Jim

*
,

de¬

year

rants when

the

!

(The Mexican Telephone Co.)

of

is

-

Yamaichi Securities Co., Ltd.

JACK H. JOST

sales

the

of

of

repeat, I regard this com¬
offering both "the" stock

1960, and
in fiscal 1961.

increased

Affiliate

as

"the"

and

Inc.

~

column

more

a

analysis of the Jim Walter
Corporation, I will be glad to
send
them
one
on
request, to¬
gether with a copy of the 1959
annual report when it is released.

income

net

with

tailed

fiscal

more

believe

construction

.

Company

of New York,

company

this

of

have

TELMEX was

present

write

'•.

readers

the

Telefonos de

on

the

examination.

Why? Because for each mort¬
being retired today, at least
new
ones
are
being written
(generally for five years).
We
in

million

$20

in

now

be

five

increase

or

.

Yamaichi

able.,to use the money
brought in by the exercise of war¬
rants so profitably that the stock's
potential dilution is not nearly so
great as appears under a cursory

10

net

Call

information

Securities

sophisticated financial insti¬

'

the

current

_

,many„of the nation's largest and

shares

on

For

,

substan¬

next

the

%

STOCKS

at an extraordinarily prof¬

money

gage

will

JAPANESE

by approximately $12 mil¬
lion, on payment to the company
approximately $20 million.
The
Jim
Walter
Corporation
has proven its ability to use new

1954

extremely
imaginative.
Jim

and

group of

| Dunhill Building:

such

some

The

The
Walter

know

I
I

I

is

own

branch offices

our

of

re¬

subsequent

eral

I

|INTERNATIONAL

mortgages
which
the
Jim
Corporation handles on its

to

>1

standing (there are now approxi¬
mately 1,000,000 shares outstand¬
ing), and increase the amount of

If

large part of these earnings

the

Birmingham, Ala
Mobile, Ala.

Direct wires

•

newest

covering

earn¬

Exchange

NY 1-1557

New Orleans, La. -

here.

the number of shares out¬

double

situations available today. (These
bonds were originally issued in

of

premium

Latin

foresee

I

Stock Exchange
Stock

HAnover 2-0700

which, if exer—.
cised in full, would approximately

re¬

average

each

top

FRFE"

I

mailing

1%.

an

on

run
The

Excellent Management

hundreds

thousands of names of ambitious
Americans eager to invest in spec¬
ulative venture.
Call Dunhill for

I

on

sales, and has never had
a single
mortgage.

LISTS

I

than

over

possessed house

I

1962

In

doubled in

livable.

attractiveness

value

I
»

net

York

American

bonds

and

would

tial

detail

to

on

The
25 Park Place, New York 7

own

are

as

Walter
gage

★

company

company.

Walter homes

So

stock

ings of $9 million.

we

TV ];

Briefly, in addition to the stock
and bonds, there are outstanding
two classes of warrants to buy both

will

mortgage income alone based

Corporation is

finance

a

construction

securing

complicated

estimate that

the do-it-yourself principal to its
logical conclusion in the homebuilding field.

useful tools in

Capitalization,

tutions.

earnings for the
fiscal year ending Aug. 31, 1960
of
approximately
$4.2
million,
and earnings in fiscal 1961 of $6

for

Members New

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

years.

housing

shell

effect

In

most

1,930,883

2,800,000

Earnings Projection

the

ranging

the

392,844

1,212,010

24,000,000

(est.)

estimate

A

Steiner, Rouse & Co.
Members

Walter

top price of $3,495.

of

4,450,001
11,785,598

struction, including plumbing and

poration to offer a choice of one,
two
or
three
bedroom
models,

one

152,984

l

wiring, remains unfinished. Large
volume and standardized produc¬
tion enable the Jim Walter Cor¬

Advertising is

$72,819

1,685,149

are,

completed

which has been

I

Net Profits

Sales

1955-t-

Jim

City (Page 2)

bonds

1959

MUNICIPAL

share

1954

Aug.

Bought—Sold—Quoted

A.

*

dicated earnings of
per

S.

The Jim Walter capitalization is

30s

Low

Mexico,

New York

too
in

Aug. 31

1959.

31,
for the

195687

de

(The
Mexican Telephone Co.) Jack H.
Jost, of Carl Ma^ks & Co., Inc.,

housing market.

Stock

Louisiana Securities

Free¬

—

a

Ending

in

the fiscal year

ending

made

Fiscal Yr.

$ 2.8

million

will have

offices and

Corporation

N.

Telefonso

believe the
in excess of

Record of The Jim Walter Corp.

most] 40-fold,
to
an
esti¬
mated

I

ord:

its

creasing

Teletype NY 1-40

BOSTON

Private

$24

o

months,

will have

company

$2.80

time in¬

same

120 Broadway, New York 5
WOrth 4-2300

i 1 1 i

m

20-fold in

an

estimated

Established 1920

has

1960's

the

some

five

to

years,

Corporation
Stock

of

bond

nor

Qklahoma and Arizona.

12

California

securities I
provide "the" stock

increased its sales

New York Hanseatic

American

Walter

big entrance in the mushrooming

Corporation

will

to

Within

100

The company whose

HANSEATIC."

"Call

Exchange

Savannah, Ga.

v

sure

the wildest

Stock

York

New

intended to be,

Carolina,
North
Carolina,
and
Virginia),
across
the
United
States

Contacts through

Alabama &

Jelks,
Jr.,
Assistant
Vice-President, Johnson, Lane,
Space & Co., Inc., Savannah,
Ga. (Page 2)

offer to sell the securities discussed.)

as an

JELKS,

NAPIER

Participants and

field from alt sections of the country
man

experienced trading

Thursday, August 27, 1959

.

Their Selections

participate and give their reasons for favoring a particular security.

Our

.

This Week's
Forum

of exp

group

.

very

able

Mr. Eloy S. Val-.

Continued oh page "40

National Quotation Bureau
Incorporated

.46 Front Street

.

New York 4, N. Y.

Volume

190

Number 5876

v.

The

.

Comrpercial and Financial Chronicle

r"

IN DEX

Management— Its Importance

Articles and News

sis

•

prise,

maintains

—Thomas

Dispelling

catalyst of business enter*

misunderstood,- Urges

bankers

Timothy Murphy

HORROR!

Some

Popular Illusions About Inflation

;

:

That

Cover

Declares

factor.

ment

of business

cause

Drake

management weakness

is the overwhelming

—Milton

J.

Drake

;

our

;

Green A

3

Should Know About Their Railroad

Investments—Roger

Management is the catalyst of tions and force them to fight the •
business enterprise. It is the pre¬ competitive battle until they be- ;
cious ingredient which blends the : come successful, or are eliminated, r
skills and abilities of a group of By thus giving aid to the strong
and able so that they can more l
diverse human
'••?'■■■
effectively
perform
their • eco¬
beings into a

belongs

paid!

Obsolete Securities Dept.

What Investors

A V

penny

morgue.'

,

normal business risks, and the

performance record as revealed by statistical data. /

of yours

in

stuff

Management: Its Importance in Credit Analysis

suspension. As two crucial checks of management,

lists willingness to take

ghastly

stock

%—Winfield W. Riefler______„—

give

THE THREEPENNY

Cover

conscious attention to measuring and interpreting the manage¬

more

Mr.

often

is

it

;Pag«

.*"■

•'

Changes in Key Factors in Foreign Equity Investment

By MILTON J. DRAKE*
Senior Vice-President, The Detroit 'Bank andr Trust Company
Detroit banker, terming management the

.'J

■

W.

Babson__

99 WALL

.

___J__

STREET, NEW YORK

Telephone: WHitehall

5

4-6551

„

team

The

nomic

effort.
team

turns

good

out

ice

of

While

e c o-

the

in

a

whole, Amer¬
business

ican

ent erpr ise

b

may

Milton. J.

re¬

e

number

—Ernest

of job

opportunities, and
tpe highest standard of living on

—Herbert

—Ewan

self and the

people of the country
the world's greatest pool of capi¬
tal. Our great business enterprises

10

Management
thing which is

is

hard

to

Northrup

Clague

—Raymond F.

:__

r

H

industries

Mikesell_______

13

—Benjamin B.

Kendrick

spite of the great benefits
which management has brought
to the American people, it is often
misunderstood.

Sometimes

it

is

subjected to political persecution.
At others it is maligned by So¬
cialists

"who

Communists

and

would like to usurp management's
position and who, I am sure, with¬
out competition would never do
the job so well.
Management, of
course, makes mistakes; but be¬
cause management is composed of
people, it is subject to all prob¬
lems arising from human frailty.

Management's great importance
in

strength

ana

should

mistakes

concealed

be

not
or

economy

our

by

It is

weaknesses.

its

nec¬

that an effort be made to
analyze and sympathetically un¬

essary

immeasurable

its

derstand
tribution

to

free

our

character

Wilfred May

A.

.

and Peter L.

Bernstein.

17

Talks

of

L_

Russia.

With

be

so

made

more

in the banks of
It is the banks which

than

the country.

often render the financial sup¬

port that helps management to be
successful.
It is also the banks
which

to weak
or incompetent managers prevent
them from extending their operaby

*An

denying help

address

American

by

Institute

See

and

Bank

\

-

19

t'

■

Ling Altec

It

L__-_r.i__________

(Editorial)

Insurance

Cubic Corp.

'.Cover

Stocks.

Pacific Uranium

14

management for granted,
Coming Events

in

Investment

the

Field

American

8

as

Dealer-Broker

Einzig:
.

Investment

Recommendations

Mutual

Funds

9

___^^

Bargeron

Singer, Bean

16

Activity.

a_

——-

HA 2-9000

21

the

analysis *
banker

financial

18

Direct Wires to

Observations—A.

Wilfred

May.L—

Chicago

4

:

Los
Our

Reporter

Our

Reporter's

Governments__________^

on

L__

conditions

city
The

often

Mr. Drake before
of Banking.

are

Report..

22

—

Railroad Securities

!______—___

Securities Now in Registration

good, but the ques¬

they act when

good.

Do

they

competition,

or

interference,

_______

NEED "HARD TO FIND"

8

—

QUOTATIONS?

30

times

then

cry

Securities

Offerings

Security

Prospective

not
about

are

37

Salesman's Corner.

YOU WILL FIND THEM

15

about government

or

about

taxes,

about business conditions?

IN

! or

figure out what the

.

.

and You—By Wallace Streete

,

17
2

Dank & Quotation

4

Record

Or do
The

causes

page.

Security I Like Best..

The

of

the
on

Market

The

they get down to business and try'

Continued

State

of Trade

and

Industry

27
Washington

(Only

40

You——

and

$45

Published Twice

For many years we

PPCCCPPCn CTflPKt
specialized in J. » M L IIII L II 0 I UUlVO

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Other

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Copyright 1959 by Wittiam B. Dana

.

COMMERCIAL and
FINANCIAL CHRONICLE
WILLIAM

x

,

The

Reg.

Founded

Weekly

1

per

Copy

(Single

have

St. Louis

^

38

Public Utility Securities

tion that needs to be asked is how
do

Philadelphia

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19

Dallas

Cleveland

Angeles

statement*

which
the
depends.

upon

so

inc.

40 Exchange Place, N. Y.

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dealing and their standing
the community, .and
less re-,
on

mackie,

&

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is

liance

request

on

Sterling's

1

of Current Business

Indications

* Prospectus

;

"American Investments Increase

Vulnerability"

Marc

Lease Plan International*

8

From Washington Ahead of the News—Carlisle

,

in

We

.As

The
extent
of
the
analytical problem
of
management
varies
considerably between banks. For
example, it will be somewhat dif¬
ferent for
the country
bank as:
compared with the city bank because,
the
country
banker will
ordinarily know his oorrower bet¬
ter than the city banker, who may
know
him
only
casually.
The
country banker may place more
reliance on the people with whom
he

■.

Regular Features

he be misled by such >'
family background and .
connections, social standing and •
prestige, or personality.
;;

things

•*

.

should

nor

to
M

;

problem of analyzing management
will also vary as between periods ,
of prosperity and adversity. Many.
look
good' when,
analysis managements

this

should

management

•-

enterprise

central core.;

thoroughly

not take

J.F.Reilly & Co.,Inc.

Philip Cortney Says World Business Leaders May Begin Trade

credit analyst

or

C

.)

Investment Course at New School Under Guidance of

and

which it is the

business system, of

Nowhere

con¬

broadcasting

14

measure.

should attempt to understand and
evaluate these elements. He should

In

metropolitan

The Role of Voluntary Planning for Retirement Income

Among other things, the elements
of
good management consist of

The loan officer

,

botany

12

______

.

Misunderstanding

pyrometer corp.

Our, Economic System

•

intangible.

an

R.

The Underdeveloped Areas and the U.S.
Economy

and. integrity,
morale,,
understanding of the basic
problems facing the business, selfanalysis, and self-criticism in an
effort
to
bring about improve- <
and the accumulation of business
ment, organization, attitudes,
a
capital which we have are the
proper
balancing of skills and
result of a competitive American
abilities, and the establishment of
enterprise system operating to a
methods of control and measure- ;
large extent- through
managers
ment.
■
fi';: y;
•.;
rather than owners.

It has accumulated for it¬

earth,

american

i

_________

The Place of Government in

It has

in the world.

Kurnow

m.a.r.c., inc.

V

Intangibility

f

Automation: Effects on Unions, Employment and Labor
Force
-

of

many

>

~
'

J-

kratter corp.

7

bankers

Management

produced the greatest variety of
goods" and services, the greatest

Billups—Ira U. Cobleigh_„___

Measurement of Land Rent and the
"Single Taxers"
:

,

statistical statement analysis.

Drake

garded as the
most skillful

;

analysis, I am afraid
them ignore it, or
that they give little conscious at- c
tention to' measuring and inter- •
preting it, or that they take it for;
granted, or -even lose sight of it7
completely in the complexities of
that

*

as

for less.

The Buildup at

6

.

;

their credit

makes
a
profit from
the operation.

process

Taken

more

>•

Policies—John M. Ohlenbusch:______

>•

:

undoubtedly
should pay a great deal of atten¬
tion to the management factor in

value,

pomic
and

it

ment to offer

a

serv-

or

function, the, banks make
possible for effective manage¬

s ■, ■'

Savings Banks Operations Under the Federal Reserved

25

Park Place

New York 7, N, Y.
REctor 2-9570

;

4'

The Commercial and Financial Chronicle

(828)

money" label or/and perhaps to
foist this epithet on the political
opposition, the House Democrats
surely have reduced legislative

Observations...

Thursday, August 27, 1959

.

.

STEEL

The State of ; #

Certainly Senator Paul Douglas,
doubles as expert economist

RETAIL

who

and

politician,

Trade and

chaired

MANAGEMENT BACKING

the

publics' interest in
dramatic happenings,

the

more

important corporate aspects
of the steel strike have been neg-

some

the

in

and

own¬

particu¬
to
the

some,

larly

"liberals"

con¬

exercised

with

cerned

cited

Wilfred

by

Adolf

A.

Joseph

and

M.

Larkin,

C0rnm0n

plan

benture

800

Surely there can be no dissent
from the conclusion that the Con¬

shares of
of de-

gress'

into

convertible

COMMODITY PRICE

Holding

their

the

company's

pre-stockholder

not> of COUrse, constitute the
entire
reason
for
management's

tion"

m

common

interest
and the

1941.

the

between

shareholding
fight

interest

owners.

over

of

wages

the

major part of the explanation,
submit, lies
in
the
much
abused, (also by the corporate reformers)
stock option arrangements
whereby
the
acquisition
of

shares

by

management

from

struc¬

thq sale of longer-term
(Competing U. S. Gov¬
Agency bonds, as FNMA
with a nine-year maturity can be
bought to yield 4.59%, and 12year FLB's at 4.65%.)
Possible

Also

the

surely would fit
politically-made
mould in "doing right by the little
fellow," (The 40 million Savings
the

There

be

voting again

priming

the

possibly,

is,

which

House's

one

otherwise

of

area

would

in-flation

%'

1958

$10,756,936,805
1,120,047.293

1,042,000,000
713,905,173

of the Aug. 24 issue.

Steel negotiators are close to

language
"Iron

the

as

steel

strike

complete revision of contract

a

into

goes

its

seventh

week,

this

But

does

not

that

mean

any

settlement

is

all-important price tag by either side.

The significance of the contract study and

provides
In

the

a

starting point for serious work

their

renew

revision is that it

the top negotiators

as

discussion.

cautioning against optimism in view of this token progress,
Age" points out that many stumbling blocks are still

"Iron

a

of

any

continued

settlement.

These could result in

new

bitterness

stalemate.

Problems to be

overcome

include: (1) The

cost-of-living clause

which the union wants held intact and which the steel companies

equally determined to drop; (2) the high price the union will
in return for language changes on critical contract points.
While the talks drag on, spot steel
two weeks ago are cropping

shortages that were on the
up with more frequency,

horizon

and will continue to do
To

date,

of

most

so.

the

major

steel

have

users

tonnage

that

should carry them through September.
up among

Stampers
The

parts suppliers who were
are

low

major

on

Trouble spots are showing
unable to lay in big tonnages.

inventory.

industries—automotive, appliance and
equipment—are all making model changes. With new parts
specifications, trouble is expected from suppliers who could
plan ahead for the changes.
consumer

farm
and

ing

tacking on a quite vague
of Congress" statement urging a
return to bond-pegging operations
by the Federal Reserve.
Now, in
their desire to avoid the "tight

Outwardly, steel stocks appear ample to carry most consumers
through September. But to conserve supplies, many plants will
have to reduce operations at least a month before they reach
the

attractively transfer¬
"one-year money" pay¬
interest yielding interest of

41/2%

to 5%.

A.

Smith

director

of

that at least

has

been

Plastic

Ma¬

New York, it
has been announced by George A.
Gould, President.
Mr.

R.

New

Broad

throughout the United States and Canada

Jakobson,
York

Aughst

partner

Correspondents inprincipal cities

in

consumers.

It has been learned

automaker is trying to line up ingots.

is to place them with a steel mill for

The intent

immediate processing (and

fast delivery) at the strike's end.
Steel

imports

400,000 tons
since

the

per

now

are

month.

strike., And

coming

into

this

country

Stock

Exchange,

will

26th

New

of the

of

become

New York

Stock

importers

are

not eager to deliver orders

as

Principal for

Brokers, dealers and Financial Institutions

Grace Canadian Securities, Inc.
Members: New York Security Dealers Association

With Lester, Ryons

25

Broadway, New York 4, N. Y.

/

HAnover 2-0433

(Special tn the Financial Chronicle)

PASADENA, Calif.

I

Brabyn
staff of

South

Dominick

has

been

—

added

to

the

Lester, Ryons & Co., 110

Euclid

NY 1-4722

Philip M.

Orders Executed at regular commission rates

through and confirmed by

Street.

Joins Lester, Ryons
(Special to The financial Chronicle)

York, American & Toronto Stock Exchanges

RIVERSIDE, Calif.

NEW YORK

Goodrick

has

—

Duane T.

joined the staff cf
Lester, Ryons & Co., 3626 Nintv
:

about

a

& Co., 20
City,

York

Exchange.

OF INVESTMENT SECURITIES

at

But import prices have jumped sharply

Specialists in Canadian Securities

member

E. H. JStern

Street,

members

UNDERWRITERS AND DISTRIBUTORS

one

a partner of
Filor,
Smyth, New York.

&

E. H. Stern to Admit
John

on

of filling pipelines after the strike's end is be¬

Smith is

Bullard

the

problem

ginning to get attention from big

Named Director
a

danger level of inventories.
The

ville, Long Island,




The

near.

national metal working weekly points out that the contract revision
will not include the

able into

terials and Polymers, Inc., Hicks-

14 WALL STREET

the

Age" has learned.

not

elected

Members New

6.7

+

detailed summary of bank clearings in U. S. A., refer to
Statistical Edition of the "Chronicle," issued
Mondays. For
a

tion will be

in

to
"Sense

&

9.7
+ 24.5
+ 8.0
+

stock

on

Richard

Dominick

compared

Hope for Early End of Steel Strike Unwarranted

follow

attitude — namely, the
market, whence the pro¬
ceeds of value-prompted liquida¬

longer-than-five-year

increase

an

1959

this week's summary, refer to page 47

This

action

into

show

v

For

ask

maturity of 3.25% to 3.75%.

will

$11,799,111,993
1,394,153,451
1,125,000,000
761^916,587

Chicago

their current unrealistic yield-to-

Previ-

week

Week Ended Aug. 22—

are

selective

the

Clearings 10.4% Above 1958 Week

this

New York

and

Political

Congressional recanting in the
of Savings Bonds, in raising

right

in

follows:

The probability is now assumed
of

are

22, clearings for
all cities of the United States for which it is
possible to obtain
weekly clearings will be 10.4% above those of the corresponding
week last year.
Our preliminary totals stand at $24,435,378,077
against $22,127,822,299 for the same week in 1958. Our comparative
summary this week for some of the principal money
centers

case

de-flation

on

clearings

in the way

Savings Bondholders'

Relief

affected

extent, in aircraft and

some

a year ago.
Preliminary figures compiled by the "Chronicle"
based upon telegraphic advices from the chief cities of the
country,
indicate that for the week ended Saturday, Aug.

restoring

debt

pretty soon).

bonds.

government

bonds and 3.26%
Savings Bonds adopted back
the First World War days,

facilitated;
thus
automatically
guaranteeing the alignment of the

be

by

Bondholders will

government

is

the

to

will

ernment

4%%

A

we

Bank

issues.

ously the legislators had at least
confined their opposition to lifting the archaic interest ceiling of

about?

Nationwide Bank

4.35%
21/2,s of

hands

tied

term

man-

seemingly

The employees most

electronic industries.

a

4.68% return.

a

Treasury's
balance

some

at

of the session,
even
consideration of the Administration's proposals for removing the interest
rate ceilings on all but the short-

(At least in
is the self-

embattled

selling at
Treasury

1961

completely

managers

owners,

the subsequent amazing action of
the House Ways and Means Committee in suspending, for the rest

being subordinated to that of the shareholding
owners).
How
has
this
come

agers

the

The

not

bitterly fighting and antagonizing the 500,000 steel workers
along with their sympathizers in
the community, on behalf of the
unorganized
and
inarticulate

are

and

ture

are

will

market

yields
the long-term is¬

on

November

fortunately, the situation
THE DEPTHS IN
always work out thus
abusively in actual practice.
A
POLITICAL-ECONOMIC
clear
example
of
good
stock¬
CHICANERY
holder backing is being furnished
The
question
raised
in
this
right now in the labor-manage¬
ment struggle in steel. The indus- column recently (Aug. 13 issue)
try's high officials, quite contrary as to whether a democracy's fiscal
to the dictates of their personal
policies can be properly deter"public relations," and shunning mined in a political environment,
the easier way of appeasement, has been decisively answered by

the

now

yield,

a

shareholding

The short-term

next

But,

does

will benefit.

automobile, farm equipment, and to

sues—the Treasury Bills of July 15

long way toward
the elimination of divergence of
go

contracts,

Boston

tion.

material stake, undoubt-

edly does

succession, the Consumer Price Index
new
high, it was announced Aug. 21. The July rise was
0.3%, lifting the index to 124.9 of the average for 1947-49. Goods,
services, food and sales taxes are accountable for the rise. Over
1,000,000 employees, covered by the escalator clauses in their work
a

Philadelphia

higher than

joint ownership of stock with
resulting establishment of a

potent majority of the shareholding owners.
Such grasping of
corporate power by management
was likewise touched on by James
Burnham s
Managerial Revolu-

action in preventing the
from selling bonds of

be flooded with issues with

position in labor
diSpUtes. But, as in other phases,

interests of the scattered and im-

For the fourth month in

set

greater-than-five-year m a t u r i t y,
makes of it an engine of infla¬

stock

does

plete absence, of stock ownership
by company directors and management has harbored the possibility
of
their neglect
of
the

INDEX

Treasury

stock,

PRODUCTION

with

the

Accelerating the Inflation Engine

and $10,000

bonds

common

poration and Private, Property,"
paucity, and sometimes com-

owns

stock

bil¬

Congress, in the face
of
its
frequent demagogic
dia¬
tribes against the interest cost of
servicing the national debt, is by
its present attitude itself paving
the way for an increase in such
servicing.

Homer

Berle

"The ]\Jodern Cor—

book

Also

Vice-President in charge of indus¬
trial Public Relations, outside the

Jr. and Gardner C. Means in their

epochal

President

And

$85

creation of the budget deficits.

and/or

May

option

Messrs.

directors

with

along

money

the previous politically motivated
actions of
the
Congress via its

1,200 shares of non-optioned

stock,
A.

Deal

New

days

owns

As

during
early

the

battle

respectively.

shares

by

officers.

financial
reform.

new

lion for refinancing, over the next
12
months, stems directly from

of the Bethlehem Steel

case

responsibilities.

Ironically, the size of the Treas¬
ury's problem, as measured by its
to
borrow $6J/2
billion of

Corporation, under the Stock Op¬
tion plan adopted in September
1957, options on common shares
to a total of 116,600 have been

worri¬

been

the

of

abdication

Committee's

its

need

rise in wages, own 19,302

a

16,202

In the

ership has

forefront

the

from

PRICE INDEX

BUSINESS FAILURES

Joint

House

effec^

jn

against

control

from

Managers

since May 1951,
options for 1,608,610 shares have
been exercised by key manage¬
ment.
Roger Blough, President,
and Robert C. Tyson, Chairman of
the Finance Committee, who are

years the
separation
of
corporate
management

and

Stock-Holding-

Under U. S. Steel's stock option

pjan

lected.
Over

the unorganized

body of stockholders.

SHAREOWNER

THE
Midst

with

managers

Committee of the
Congress to study this very prob¬
lem
of government debt opera¬
tions, does not approve of the
the

*

TRADE

AUTO

Industry

the recent extensive hearings held

by

OUTPUT

CARLOADINGS

FOOD

who

and

PRODUCTION

ELECTRIC

integrity down to zero.

MAY

WILFRED

BY A.

.

Street.

Members:

The

Principal Stock Exchanges oj Canada

National

25

Association

of

Security

Dealers

Broadway, New York 4, N. Y.

|

Volume

^Ntimber 5876 M

190

booked earlier

at lower

Foreign mills are slow on ship- v "
well as customers would like.

prices.

ments and don't meet schedules

'Oi
will

If the strike

Till October

Oct. 1, fourth quarter steel operations

ends by

%

as

More Than Half of Steel Users' Stock Will Last
-

*-(829)

Chronicle

The Commercial and Financial

.

The dean of financial advisors
has not been done

The ingot rate may reach its highest point of the year in
or December, but fourth quarter operations probably
won't average as high as the second quarter's 91.8%. Steelmakers
will need at least three weeks to get production over the 90%

their

selves

ployees ten days ago at Milwaukee because of plate shortages.
Rivet manufacturers can last another 60 to 90 days, but many

will

already in trouble.

fares

creased

on

"Super-

strike.
capacity.

It

9%.

fear

German steel production

the

in

were

They

here.

period. U. S. exports to Europe dropped
U. S. manufacturers lost $866,694,000 in sales to

like

means

1958

Railroads

Steel Output Based on
and

Iron

Steel

12.1% of Capacity
Institute

announced

that the

*21.4% of steel
capacity for the week beginning Aug. 24, equivalent to 343,000
tons of ingot and steel castings (based on average weekly produc¬
tion of 1947-49) as compared with an actual rate of *20.0% of
capacity and 321,000 tons a week ago [ED. NOTE: A strike in the
operating rate of the steel companies will average

industry began Wednesday, July 15.]

Actual

output for the yveek beginning Aug. 17 was

11.3% of the utilization of the Jan. 1, 1959 annual

equal to

capacity of 147,-

633,670 net tons. Estimated percentage for this week's

forecast is

12.1%.
A

month

ago

the operating rate

(based

1947-49 weekly

on

production) was *21.5% and production 345,000 tons. A year ago
the actual weekly production was placed at 1,715,000 tons, or

production is based on average weekly production

Reflected in July Steel Output

Strike's Impact

in

the strike

the steel industry, steel

last year.

According

to

American

Iron

and Steel Institute's

index of

steelmaking the July 1959 output was 73.6 in terms of the basic

production during the period 1947-1949. This
compared with 158.4 during June 1959 and 90.3 during July 1958.
The index figure for the first seven months of this year
was 142.9 compared with 90.8 during the same part of last year.
Based on the Jan. 1, 1959 capacity rating of 147,633,670 net

index

of

average

Continued

on

page

have

prepared

Boise Cascade
trading

Primary
for

Banks,

a

study

the

Corporation

market

Brokers

on

and

maintained
Institutions

ESTABLISHED

ff>ny(A

Member
26

New

American

York

1915

'

"

Stockr Exchange
Stock Exchange

New York 4, N. Y.

Broadway

Telephone DIgby 4-5760




engage
in general corporate
financing, specializing in provid¬
ing venture capital funds. Irving
D. Berger is a principal of the

was

World
a

firm.

■>

.

L. A. Caunter Adds Two
(Special to The financial Chronicle) v

CLEVELAND, Ohio — Herman
being given freedom Friedland and Nick Russe have
business

own

as

do

been

added

Caunter

bus companies, trucking con¬

&

to

the

staff of L. 'Ay

Co., Park Building.
T'.'i l-i £ u>'l

trunks

on

many

of¬

carrying baggage
cars
and men to handle baggage,
both at the stations" and in the
trains.
Even the freight business
This

falling

is

roads

are

saves

off, although the rail¬
running faster freight

"piggyback"

service and adopting

transport from point of loading
to final destination. Now electrical

freight yards are being built and
salesmen are calling on shippers

for

business. Freight business may

again increase, although the new
Federal highways

will be another

handicap.

will
the

however,
compete
with

railroads,

The

28

Every stock
the NEW YORK STOCK EXCHANGE

on

magazines, and bill¬

boards in selling advertising space.

dining

if

there

are

any

with
only

but

linens;

of
All

served!

use

place

may

gradually

decline

as

passengers become fewer. Freight
cars
and freight yards, however,
offer some advertising

possibilities

national and local prod¬

for both

t-i i-i

be

the

right-of-way will be sold for ad¬
vertising space, although this in¬
come

ucts.
What More Can the
Get

Railroads Do

Income?

MAKE

YOU

OWN

YOUR

Subscribe only to the stocks you wish to

SELECTION

receive. These individual charts'

published & mailed after close of market each Friday. The daily,
activity of each stock, showing high, low, close & volume from Oct. lj
1958 through the current week, is carefully charted on special 8V2" x 14"
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On

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.

following "LOW-COST'' schedule is based on a full year's subscrip¬
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The

cancelled.

largest
real estate owners in the United
States.
This is true not only of
railroads

The

are

the

Fe, the Union Pacific,
Northern
Pacific,
and the

Southern Pacific, but of every one
of the 700 different railroads now

Land owned but not
now
used by the railroads could
be sold to pay up all their bond
issues.
Selling this land would
not only save them interest and
taxes, but would benefit the com¬
munities in which these 700 rail¬

operating.

operate. The railroads should
to
consolidate and
raise or lower their rates of fare
allowed

be

and freight

•

the

Santa

charges.

large 1 termi¬
feet far¬
than the present stops;

Railroads
Member

off

Avenue

to

Costs

roads

SSullavd

—Berber

Everything

Doing

checking

out

the

We

C

Connecticut

railroads have bought new

The

table

production
fell to 5,233,000 net tons of ingots and steel for castings during
July, as compared to 10,907,634 tons in June, according to the
preliminary report of American Iron and Steel Institute. In July
last year, with no strike, the output was 6,442,405 tons.
The output of the first seven months of 1959 was 69,511,203
tons, against 44,172,892 tons made during the comparable part of
of

816

cars,
which are. airconditioned. But they are cutting

In

1947-49.

Because

their

run

the

D.

has. been formed with

at

90% old peo¬

waiters, they will not bother

for

to

Wash., D.G

passenger

newspapers,

of

are

Reduce

successfully

*106.8%.
♦Index

and by their

Are

To

fices.

steel

in

trains and are closing express

European competitors.

The American

This

two

might

ple; the young people travel in
automobiles, buses, and planes.

the magazine reported.
sales advantages from a con¬

Germany,

depressive and deflationary
is at a monthly rate of 2.5
million net tons, a record annual pace of 30 million tons.
American export markets continue to vanish.
U. S. exports
from Europe during the first half were 42% greater than they
shutdown

tinuing

pas-

riders

Now the

the life

ciency, fairer labor and tax laws,

Roger W. Babson

eight beautiful cars hauled by two
engines and a crew of ten men.
The passenger business will grad¬
ually decline to almost no riders.

two months after settlement of the strike.

influences.

54

sengers

grade
No. 1
will not decline much below current levels until at least
worries

There

Chief."
were

The magazine's scrap price composite on No. 1 melting
remained at $38.33 a gross ton last week. Consensus is that

strike

F e's

Santa

coal, coke, ore, and steel mill products have remained
-strong. Output of electric power has been setting weekly records.
The automotive sector is entering
a
perfectly normal model

the

Co.

fifces

monopoly, they abused the people.
They are now suffering from this
but this will all be changed.
It
will be changed by greater effi¬

iest train—the

other than

In
&

When the railroads had

Wars.

the swank¬

are

nation.

the

during

proved

Arizona

from

of

blood

returned

just

They

heavy freight.

I have

stocks

bank until industrial
their crash in price;

a

WASHINGTON,

We must have the railroads for

fur¬

ther.

instances, * you

them, putting the

Berger Co. Formed

Railroads Are Necessary

in¬

are

sell

to

in

most

railroad

at par."

if

trains

In

r

if, desired, which would be readily
financed by insurance companies.

ride

not

the

to pile up.
"Steel" estimated they amounted to $2,136,400,000 through Aug. 24.
The breakdown: Steelworker wages, $416,400,000; sales, $1,218,000,000; other losses (overhead, depreciation, and salaries of nonproduction workers in steel), $232,000,000; taxes, $270,000,000.
Lost steel production amounted to 11,607,100 ingot tons.
There is still no serious threat to the nation's economy even
with five weeks of steel strike on the record. Shipments of goods

steel

Albany

ple simply

Direct strike losses to the steel industry continue

Our

&

and the Boston &

Central)

*

ably keep them. When the rail¬
roads wake up to the advantages
of getting into the real estate and
advertising business, most of these
railroad bonds should be paid off

Rails them¬

Rail bond holders are advised to stay put.

;

then reinvest in good dividendpaying industrial stocks. You who
hold railroad bonds should prob¬

and

advantage of the next crash

until they can take

urged to get into the real estate and advertising business.

are

Boston

York

also reveals that 47%

Its steel executives see no permanent

Rail stockholders are advised to sell

holdings.

and.

/

'

word—in closing—to in¬

have

stocks

(New give the railroads some wonderful
property, however, to rent for
Maine railroads are asking to drop supermarkets,
drive-in theatres,
scores of trains and stations.
In¬ bowling allies etc. in the hearts of
the cities, irrespective of the de¬
creased
fares
crease in passengers. These, more¬
are
not
the
solution. Peoover, could be two-story buildings,
The

October, or longer. But the "Steel"
of the buyers may have problems
before that time; 18% have supplies for less than three weeks.
Inventory situations vary widely among steel users—from
Maytag Go., Newton, Iowa, which has enough to last well into the
fourth quarter, to A. O. Smith Corp., which began laying off em¬
have enough steel to last until

grades

their funds

in industrials.

mark, the metalworking weekly said.
More than half of metalworking's purchasing agents say they

changeover operation, with no ill effects from the steel
;
Steelmaking operations last week held at 12% of
Production was about 340,000 ingot tons.

railroad

bank

money

5

they must now

■*■...•

hold

do well

apprises investors on what has and

*

a

vestors:

by the rails and also furnishes advice regarding

which

with

compete.

By ROGER W. BABSON

,

of galvanized steel are

taxis

who

companies,

airplane

cerns,

IxHOV^

k

About Their Railroad Investments

November

users

^)RQLllCl

Ifl VfiSTOTS

peak at 94% of capacity, "Steel" magazine predicted Aug. 24.

survey

IX

|

|

|

y

Now

Major markets will be as strong as they were in the first half.
Rails, the only weak item, will trend upward, as will the output
of capital equipment.

.

/I

a

yy pgr

nr

having

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TRADERS RESEARCH. INC.

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nals will stop trains 1,000

hence, unless there are more "red

20

RESEARCH

INCORPORATED

Suite 375-32, Arcade Bldg.

•

St. Louis 1, Mo.

Savings Bank Operations Under
Senior Vice President,
The Bowery Savings Bank, New York City

!

Prominent Savings Bank

i

1

risks

of the

because

market's

Bond

Board

policy.

To

official reports his institution's desistance, /

involved, from

swings

to

take

Does, however,

over-playing the

advantage

of

in

class of securities to another, as between

treasury issues and

the

that

assume

these

one

forth

set

illustrate

of the

Reserve

policy of shifting from

pursue

us

Government

changes

XYZ

we

the

own

3%

are

as

Decries, as

measured.

be

may

and

interests

both

in

not

the

unlikely to be successful, current

nation's

proposals for the

market

•f varying

maturities. Advocates raising of Government Bond yields

lessen stock

to

market speculation.

avoid

would

Treasury's future offerings.

how
In

the management of
vestment
account
there
exists

in¬

any

always

strong temptation to try
outguess the market by buy¬
a

securities

ing
low

they

V

are

ing them when

they

i

kind of

icy
f

r e q u e

does,
tial

shifts

matu

When

rising,

should

one

other

make

a

turn different¬

conclude

hand,

bonds

should

one

the

from

that

long-term

above

simply

we

and

buy

hold

them

to ultimate

maturity. We do make
considerable shifts in our invest¬

ment

in

holdings, but the

which

do

this,
volves
considerably
our depositors.

prices

bonds

the

not

ities.

r

a

and the trend in in¬

guess

John

are

we

in

feel, in¬
less risk to

we

usually rise faster

declining bond prices

make

terest

rates,

again

travel

wider

tions

rising in¬
long-term
bonds
through
a
much

arc

>•

and

afford

or

short-term

much

better

protec¬

often

in

policy,

beginning of the post
fourid

Because of the fluidity of
investment funds, however, and
because the capital needs of busi¬

frequently coincide with its

needs for short-term accommoda¬

tions,

long

-

term

interest

tend

to

move

tion

as

short-term

^Federal

in

the

rates
direc¬

same

rates.

Thus,

policy

Reserve

which

might call for

a
condition under
which the short-term money mar¬

might be

allowed

to

tighten

such

which

ours

as

might attempt to play the swings
the

market

in

this

manner

might, if successful, produce out¬
standing results.
This has been
particularly true during the post¬
years

general

when

have

interest
been

rates

tially

bond in¬

Since that

as

percentage

a

increasing.

Washington, D. C., July 29,

1959.

of

total

assets.

However, there have been
three or four times during these
years

when

we

have

regarded

it

advisable to shift out of substan¬
tial

amounts

of

other

bond

hold¬

ings to purchase U. S. Government
obligations.
At

the

outset, I

must

that

say

have been prompted in these
actions by what we believe to be
the best interest of our
we

deposi¬

have

made

a

also
this

believe

that

manner

contribution

to

we

the

Treasury's debt management poli¬
cies, without running contrary to
the

monetary policies of the Fed¬

eral Reserve.

Let

me

'..a.'.

>

underwrites

has

of

debt

new

offer

to

his

secu¬

discount

a

better rate

than

or

porate
At

•.

■

.

*

rjp

obligations.

He

also

clearly why this is necessary.

very

Under
have

the

the

at

in contrast

beginning of

covered.

In

other

„

bought the Treasury
(per hundred dol¬ could have concluded that sub¬
investment)
had
to
be stantially all of our losses had

bond

at

made

was

83.27.

been

investing

received.

not

We have

they

to

were

been

net

cash

of

9.57

bond

corporate

yield

3%,
bond

points.

We

yield 4.25%.

on

books

our

we

now

have the

on

us

corporate

ac¬

cumulating any large sums in an¬
ticipation of the Treasury's offer¬
ing of long-term securities. How¬

our

books

to

Our future income is

going to be considerably larger.
'

There is

knowledge of the past rela¬
tionships between different classes

in

of bonds

indicates that here is

opportunity
therefore
XYZ

for

sell

the

Corporation

purchase

bond
at

will

and

50

nearer

sibly

to the

selves, let
spread

we -from

involved

the

price

purchased
down to

of

In

at
It

16.73

losses

here

the

declined

which

100

83.27.

by

probability
somewhere

business

points and, pos¬
■ Without regard
necessary

readjust them¬

widened

out

to

our

desired 50 basis points or one-half
in yield.
This could mean
that our
Treasury

of 1%

all

it

was

the

in

of

curity

of

to

shifting from

another

recent years.
was one

and

U.

The

has

one

se¬

worked

in

I have cited

case

involving corporate bonds
S.

Government bonds.

In

investment practices we have
not
confined our activities only
to these two groups.
This kind of
our

thing is possible

between state

as

and

municipal bonds on the one
bond, which
purchased at par, is now sell¬ hand and
Governments
on
the
We have been doing
to yield 2.50% and, at this other.
it,
price, can be sold at 103.92.
Our with some degree of success, with
repurchased
from
it

now

bond

at

on

can

be

Our income

par.

the

same

XYZ

sold and

was

bond

is the

before

was

3%

we

tion

would
than

1946

3%

that

corporate

have made

Government

obligations
Opportuni¬

agency

and

Treasury bonds.

ties

have

arisen

issue of U.
and

period

investments,

the

have

done

this

that

12%.

deprecia¬

amounted

Just

to

in

as

the

described to you

case

of

measure

ment

S.

between

as

Government

one

bonds

another.

of

avoided

indicated

was

market

our

which

Bank

this

bond

investments.

the

kind

been

We
Since

derived

operation
What

effects

What

of

most

securities,

in
the

are

are

what

we

V-

they have been good.
of

these

involved

U.

transactions

S.

Government

think

we

tribution

been

doing?

think

have

of

implications?

economic

have

market

benefits to the

Savings

from

broader

manage¬

has

be estimated at 6.55%.

can

Bowery

a

depreciation

account, the

So much for the

nearly exemplifies how this

ing

corporate

its

estimated

more

way

has declined

points while we
only 7.16 points.

was

XYZ

is

in-

so

bank

depreciation

us assume now that the

has

and retained

it

the

security

to

intervening- time

throughout

which had been avoided, similar¬

out

for these bonds to

Had

nothing

follows:

more

more.

funds

vested.

as

all

basis

even

our

previously there

In

widen

the

advantage
operation and it

one

corporate obligations this spread -Thus we conclude that we have
in yield of one-quarter of 1%, or avoided depreciation of 9.57 points.
25 basis points as we refer to
This latter case, as I have
it,
said,
it

of

about

comes

took

narrow.

5.45%

ly, here with the over-all

the

unreal¬

of

this

price

too

the

existing in

I have just descirbed to you,
the market value of the corporate

an

Treasury's
2%%
In the light of the history
relationship between Treas¬
obligations
and
high-grade

is

1958

the

of

par

to

hypothetical

further

of

end

We

profit.

a

the

depreciation

bond investment account amount¬

kind

case

ever

At

ed

the

funds in

our
as

beginning of the period.
ized

13.23

have had total losses amounting to
7.16 points but, instead of having

investment policy we

our

long-term securities

has

real

a

been

made

con¬

the

to

Treasury's debt management

pro¬
gram. When corporate bonds have
been at their highest

price

tive

to

securities

These

longTreasury.
frequently
new

the

by

usu¬

immediately

following flotations of
term

rela¬

Governments, it has

ally been at periods

periods
have
selling corporatcs and in
sustaining the Government

found

us

effect

bond market.

when
in

On the other hand,
Treasury has not been
market for a long period
new
long-term offering,

the

the

with

a

profit in the Treasury obliga¬
tion of 3.92%. This
calculation, of

Buying Low and Selling High

course, presupposes
no
lapse of
time between the two transactions

Earlier I had said that the way
to invest profitably is to buy when

have

and

securities

rates.

a

no

for the

allowance has been made
lower income while hold¬

ing the Treasury obligation. These
things, of course, do not happen

and

low

are

when they are

cisely
except

what
that

yield

determined

ment

•

of

and

high.

we

by

we

In

securities

them

porate

flotations

securities

become

ments

pre¬

and

with

S.

Govern¬

have

new

Bank,
the

has
the

sellers

of

been

monetary

been

we

Govern¬

of

corpo-

has been

the Bowery Savings

not

Federal

has

cor¬

heavy,

purchasers

price or the
buying in

U.

of

are

We think this program

of benefit to

are

we

when

trying to do
or
"low" is

are

the

what

sell

That is

"high"

substitution.

above.

case

have
i

More

transactions

been

markets

frequently

have

involved

inconsistent

objectives

Reserve

of

Board

assistance

of

and

to

the

secu¬

a

-

in

a

This

is

declining
how

the

bond
above

ernment

that

in

again,
disregarding the lapse of time, let
us. assume..a

decline
NEW

YORK

we

same spread between the
two bonds of 25 basis points as we
had in the prior case. Now

circuit to Honolulu

Serving Investors

transaction

have the

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

-

this

•

CHICAGO

r

a.

in

continuation

the

bond

of

market

the
with

widening in the spread between
corporate obligation and the

our

Treasury-bond. Let
that

we

can

sell

us now assume
our

Treasury

become

excel¬

an

recently thought it might
be interesting to make a review
of our portfolio as it was man¬
aged in the post war years, giving
effect

to

these

we

securities
for

losses

and

to

the

have derived from

our

holdings.. This has been
years 1946 through

the

1958 and is presented herewith

Exhibit I.

as

The first column of this

Table shows the operating income
the bank has derived from secu¬

rities

(for most years, the coupon
interest, less the amortization of
premium or discount). The second
column shows the net bond

losses.

bines
net

the

profits

The third column

first

two

to

com¬

show

the

income.

Thus, net income,
after deducting losses, has been at
the average annual rate of 2,43%,
the beginning of this period

At

the bank's operating income from
securities was at the rate of 2.44%.

the

return

to

the

era

pegging the Government bond

market

.We

or

advocate

.

when the Federal Reserve system
was

securities may be measured.

done

been

bonds

lent yardstick against which other

income

noted

Members




2.44%

period

able

stated

purchased at par and
sold at a price to yield
3.25%, a
price of 96.34. Our assumption as
to the spread in yield calls for the
purchase of a 20-year Treasury
3Vz% bond at par.
It will be

&Co.

Offices

and

.

ing

taking of losses rather than
taking of profits, because,
since 1946, generally
speaking, we

j

distributors
........

Midwest Stock

40

for

Our operating in¬
securities at the end

from

the

this

take

outstand¬

the

New York Stock

LOS ANGELES

2.71%

of

average

13-year period.

.

sort

ly.

DeanWitter

-

the

to

come

point, we were able to
points out of our in¬
vestment.
Thus, we have avail¬

at

have

FRANCISCO

permitted the bank to
increase its operating income from
securities from the initial 2.44%

$3.66

par,
lars
of

might work out in a
declining market." Our XYZ 20year,
3% corporate bond might

SAN

sold the corporate bond

we

96.34

at

the

obligations

point up the benefit.

explain

» brokers - dialers

radiotelegraph

losses

at

that

price for such a
for a 2%% bond to

transaction

Private leased

the

by reference to
Treasury in its debt management
In addition to the
hypothetical cases how this
disregard of rity without risk a^ to credit. All problem.
*
of thing works
the lapse of time, these transac¬ other
obligations, to greater or
advantageous¬
Just one thing remains to be
lesser degrees, reflect some ele¬
tions never work out as
The first case I" am
ideally
going to
discussed. I am sure no one would
and as simply as I have stated ment of credit risk.
Thus, Gov¬

two

^

'

that the willingness to accept

was

words, had this program been stopped at the end of 1958 we

assume

us

S.

the

4

return, after de¬
ducting losses, as the portfolio was
managed.
The reason, of course,

when

Let

more,

simultaneous transaction serves to

Complete Investment Service
.•

_

7.16 points. Further¬

amounted to

iden¬

the

concludes

a

and

little

a

these

.

a

almost

was

on

had

have

would

we

which

with

portfolio

Treasury sees
20-year bond in the

price.

somewhat

the

*;j

took

we

a

sold
fur¬

we

-

simultaneously
as
I
have
de¬
scribed, but the assumption of the

Two Hypothetical Cases

in

•From
the
statement
of
Mr. Ohlenbussch before the Joint Economic
Commit¬

tee,

a

vestment portfolio mostly in U. S.

itself, will frequently find reflec¬ tors, but we
tion in the capital markets.
in
An functioning
institution

for

war era,

with

us

more

rates..

ness

one

time, our Government bond hold¬
ings have been reduced both in
not, is directed
at
quantity and even more substan¬
short-term
interest

Reserve

than

•changes

war

from

Government securities.

Federal

in

shifts

class of securities to another. The

obliga¬ instance,

tion.

ket

important

our

ther loss of 3.50 points.
The total
we
: have
taken
thus

losses

ury

gations. Conversely, in periods of

short-term obli¬

When

points.
the Treasury bond

of the

Without regard to changing sub¬
stantially our over-all maturity
distribution
we
will, at times,

and further than

at

bond.

Shifts Made

;

long-

term bonds will

manner

Ohlenbusch

M.

we

of

tical

securities

the

our

the

the issuer of

rities

be very substantial,

statement

lead to
substan¬

very

for

On

and
ntly

can,

it

major element in our investment
operations.
The risks in such a

n

pol¬

a

make

not

ly than had been anticipated.

this

bonds,

rather

terest rates should

In the field of

investing

we

would

we

wrong

high.

are

have examined such
policy and have concluded that

a

program can
especially if

sell¬

and

However,

sale

had to take

1, 1946,

return

a

in

nothing

done

hold

security is par
added to our investment.
In the, been made up
by increased in?
yield 2.75%. Secretary Anderson, second set of transactions, how¬ come and from that
point on we*
in a previous appearance before;
ever, our sale was made at 96.50 would be able to enjoy an income*
your
Committee,
demonstrated and the repurchase of the cor¬ of 1.13% more than it was at the

Concludes if Government Bond

yields are out of line with the market, once "mouse-trapped" inves¬
tors

the

we

loss of 3.66

offering

proper

in

bond

Jan.

had

we

were

1958 stood at 3.57%

that the U.

.

Federal Reserve to assist the Treasury by purchasing U. S. securities

that

see

to yield

than

which

to

same

fit to offer

corporate

our

price of 83.27.
this transaction

a

if

other

of

this

»

best

half of 1%

a

Thus,

as in the previous transac¬
tion,-we have been able to take
cash out of our investment.
Thus,

now

yard-stick against which other securi-

a

points,

at

or

corporate

chased by the Bank at par and are

Uses Government Bonds

or a price
assumption
the two

be repurchased

can

Reviewing
can

currently selling in the market at

ties

when

bond

pur¬

cor-

the

between

spread

basis

50

or

bonds

were

yield

0 Under

the

4.25%

bonds due in

These bonds

3.75%

a

bonds has widened to

let

case,

at

96.50.

that

Corporation and that

bonds

.20 ye^rs,..

first

porates, particularly for the production of greater long-term income.

to

of

clearly the
profit to be gained in this kind
of
operation.
The second case
will be more typical of what has
happened in postwar years when,
in
general,
interest
rates
have
been rising and bond prices have
been declining.

By JOHN M. OHLENBUSCH*

I

will

which

The Federal Reserves Policies
|

bond

give you is, we might say, an
idealized version of our objective

and

taking nearly unlim¬

ited quantities of long-term bonds
at a fixed price. Much thoughtful
consideration

however,

has

been

given,

to whether the Fed¬
Reserve system should not

eral

as

assist the

Treasury's debt manage¬
problems
by
purchasing

ment

United

States

rities of

Government

secu¬

varying maturities.

I as¬

here

sume

that

such

a

program

would not involve additional debt

monetization
would

offset

in

that

bills

or

the

purchases

term bonds with sales of

changes

in

of

Fed

long-

Treasury

reserve

,

re¬

quirements

changed

thereby leaving un¬
total
Federal
Reserve

bank credit.

I believe the

is

action

that

the
of

this

would

thought
permit

issues
lower
than would otherwise, be the

Treasury to float new
long-term bonds at a

rate

Continued

on

page

20

■

Volume 190

Number 5876

.The Commercial and Financial Chronicle

.

T

(831)

tus, units consisting of $1,000

Build Up at
Enterprise Economist

and Author

Summarizing the extent,

of "How

progress

largest independent distributors
about

are

gasoline

service

United

States.

thousands

of

183,000

stations
Of

the

tens

of

owned.

are

or

operated

un¬

franchise

by

the

oil

companies.

One

major
of

the

most

chains

the

Billups
i

g a n
now

O

r

operating
318

some

tions

in

states, either through

ownership

lease, or through
franchised Billups or independent
or

dealers.

a

half,

partnerships and
corporations making up
Billups
Organization
were

two

pi,

'

Miss.,

into

two

by

tank

Nothing is too bizarre
for

the

that

seasoned

in

manager

Co., has joined Paine*
Jackson
&
Curtis, 25
Street, New York City*

Webber,
Broad

,

members of the New

the

York Stock

Billups

Co.

covers

Co.

covers

were

the

operation

the

stocks

through

from Delhi

Western from

due

5/1/84,

common

and

shares

of

subscription price

also

Cities Service.
fleet

of

Sizable

of

the

earnings

amount

equal

they
10%

to

by which consoli¬

dated net income of the, Company
and

Subsidiaries may exceed

000,000
year.

rently

$1,in the preceding fiscal
These debentures are cur¬
quoted

Western

to

with

an

at

common

83

and

now

Billups

sells at 6%

pur¬

been made from

own

been

hauling in a
trucks, making

gas

100

dozen

more

states

to

gas

standard

a

London apothecary

Rexall

attracted

going securities

are

to

the

fore¬

urged to refer

to the original offering prospectus
in each case for full details and

description. Many companies

were

consolidated into these two; there

v

as

shop does to

Associates,

R.

This announcement is neither
.

an

in

securities

a

William

are

the

of

offer t& sell

L.

(Buddie)

Billups,

customer

"Service,

and

product

competitive
pricing,
quality, spectacular dis¬

business

the firm

under

Progress Investors.
54

play and recognized value."

slogan stick.
Sell¬
ing gas under the Billups and Star

labels, the stations
are
usually
quoting around 2c under the price
charged by the majors—except on
opening

day for a new
when the price may be 4c
gallon below competition.
sold

are

10c

some

Dated

September 1, 1959
Interest

a,.

a

■

V '

-•

1"

\

5c

M.

About 80%

is

engaging

sales

are

704 Market Street.

se

Debentures.

/

'

'

<

.

Price 100% and Accrued Interest

in

gas; the balance in what the trade

TBA

calls

(tires, batteries
including, in the

accessories
of

Billups,

the

500

odd

of

idea

an

probably

total

and
case

novelty
To get

jtems mentioned above).
volume

Billups

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

undersigned

is

selling around 200
gallons a year, at least
tires and 50,000 batteries.
in addition is one of the
distributors of seat covers

million

200,000
Billups
largest

as may

legally offer these Debentures in compliance
of such State.

with the securities laws

in the land.

You
to

easily

can

Billups

ing

moxie,

dustrious

see

is

success

that the key
merchandis¬

administered

personnel

of incentive.

Retail

with
men

salary plus commissions

thing

they

kerosene.
managers

plenty

get
on

flat

a

except

gas

Each

Station

has

two

work

and
two

BLYTH & CO.,INC.

day and a night shift. Not only
is the incentive of the commission

EASTMAN DILLON, UNION SECURITIES & CO.

SH&S,NCO.G
CA AMDLO

GLORE, FORGAN & CO.

HARRIMAN RIPLEY & CO.
Incorporated

stimulus, but promotion at Bill¬

ups is almost always from within.

According

to

the

Billups

KIDDER, PEABODY & CO.

MERRILL LYNCH, PIERCE, FENNER &

Many stations sell over
75,000 gallons, and one station sold
63,000 gallons in the first two days
was

Lubrication

open.
a

doesn't

bit

of

stress

time
it.

so

When

SMITH, BARNEY & CO.

sible the driver

or

pos¬

passengers

are

encouraged to st^> out of the

car




LEHMAN BROTHERS

.

August 26, 1959.

,

STONE & WEBSTER SECURITIES CORPORATION

WHITE, WELD & CO.

oil

an

Where

CO.

SALOMON BROS. & HUTZLER

takes

Billups

change is requested the matter is

briskly attended to.

SMITH

Incorporated

month.

quite

LAZARD FRERES &

for¬

mula the least quota for any sta*tion is 20,000
gallons of gas a

it

DREXEL & CO.

forces—

a

a

DILLON, READ & CO. INC. THE FIRST BOSTON CORPORA TION KVHN,LOEB & CO.

every¬

sell,

and

MORGAN STANLEY & CO.

in¬

by

in

at

securities business from offices at

Mong

a

quart be¬

a

of total

Opens

FRANCISCO, Cal.—Harry

Richardson

Motor

low the majors.

at

>

station
or

of

(Special to The Financial Chronicle)

Due September 1, 1980

payable each March 1 and September 1

are

,

Corporation

.•

name

Offices

M. Richardson

SAN

solicitation of ah offgr to buy any o

.

Stock

Morgen¬

Downing Street.

Twenty-One Year 5% Debentures Due 1980

And

he makes this

Mayer*

a

1139 Chestnut Street..

General Motors Acceptance

D.

Joseph

$125,000,000

now

responds to five things:

nor a

25

business.

American

The offer is made only by the Prospectus.

v\

r„,

has

at

Forms Progress Inv.

H.

C.

offices

COLUMBIA, S. C.— Robert L.
Brown is engaging in a securities

relationship

station

with

Morgenstern
with

in the

are

PARK, Calif.—John J.
now

♦

stern.

(Special to The Financial Chronicle)

is

1943.

Street, New York City, to

Exchange,

Joins C. R. Mong

Redlien

and

#

and

member

drug store!

MENLO

in

formed

Partners

realm

same

Co.

Mayer, Morgenstern

engage

with

bears about the

Trust

before

i

-•

Broad

heading,

a

'■

Mayer

Billups does about

over

*\

Form

indicated 48c dividend.

Persons

.

in

Co.

1

direct delivery to each station.
The way these Billups ventures
are

Co.

Hutton &

of
probability.
"Fill
up
Billups" makes quite a slo¬
gan; and they have almost every¬
thing behind the pump but a stock
exchange ticker!
A Billups' unit

in

were

&

Pe¬

expansion
seems
certain to \continue. $100 million
in annual glross, and new stations

common

share

both

-

2

chases have

States

ture of the debentures is that

investors

-

and

troleum of Houston.

1,000,000 80% of its

in units of one

Eastern

Manufacturers

joining the
underwriting department of W. E.

Taylor; and for Billups

50,000 shares
publicly offered
at $6.10 per share. (The prospectus
was dated May 27, 1959).
A fea¬

were

opportunities

and

of $22.20. In addition

operation

companies there
security offerings of
and

Drexel

of

With the formation of these

afforded

at

been regarded as a shrewd buyer
January
of, 1953 of petroleum; Presently principal
March 31, 1958 earned supplies for
Billups Eastern come

From

too novel

or

formerly
for W. E.

&

merchandise

a

Chairman of the Board of the two
main Billups'
companies, says a

oils

doubt

companies
are
moving
As their securities become

tion.

moccasins, and charcoal.
W.

For

little

Planqne

Planque,

jockeys.

display sec¬
Billups' station. They've
sold a few million goony birds at
29c, king size teddy bears at $9,
shrubbery, plastic houseware,
dolls, toys, wagons and gas trucks
(with Billups' advertising), Indian
tion at

6%.

be

can

Hutton

enterprise is taken into considera¬

holding $10 debenture
Eastern Pe¬ common for a

-

purveyed

at

There

50c

a

de

business

hew

high

shares of

early in the business the Billups share in the rising profits of these
boys started to sell other things quite unique merchandising or¬
besides their own brand of gas.
ganizations.
First
the
standard
accessories,
Billups Eastern was formed first
tires and batteries; then, seat cov¬
and, under date of July 31, 1958,
ers
and in due course, the most
there were offered, by prospecdazzling array
of
merchandise
ever

pays

Norman de
Norman

buyers who have been look¬

main

main

which they ran night public
and day under a slogan "We Sell
bonds
But

sells

and

for

tures

Alabama, Louisiana, MississipMissouri, Texas and' Tennes-

see.

(They still do!)

now

this Spring through the sale of $5
million 6%
participating deben¬

0f about 195 stations in the States
0f

Less."

aheald.

well,

Paine, Webber Adds

the

placed.

by over $1V2 million.
Billups Western was financed

dozen

troleum

2-pump service station in Carroll-

for

de¬

creased

Georgia, Florida, South Caro¬
lina, North Carolina, Virginia and
Delaware.
Billups Western Pe¬

Three Billups brothers started
the whole thing off in 1926 with a

ton,

these

sftrplus of Billups Eastern had in¬

in sales

year

of

sta¬

13

each

of about 117 stations in the States
Cobleigh

debentures

and

in

financing
were not above
described, prima¬
rily because they were privately

these

ing

profits.

companies.

U.

the

on

included

market (present
trading is over-the-counter) new Exchange, as an executive in the
yielding securities buyers may well be attracted by corporate finance department, it
these
Billups issues may have tHe prospect of generous cash di¬ has been announced by Lloyd W.
some
appeal, particularly when vidends and rising earning power. Mason, managing partner.
Apparently all these techniques
the remarkable growth rate of this
Mr. de Planque held positions
of service
and
Billups Organization has long
sales have been

troleum
Ira

rants

an

attractive,

earned

those

display. There's more profit in
$9 teddy bear, than in a tankful
of gas!
>

combined

-

coupon

dividend

on

the

tion,

z a

for $1,000; and

has

States.

separate

the

also

are some quite complicated licensing agreements; and senior bonds,
preferred shares and certain war-

par

debentures and 20

bentures sell today at 88 to yield
7.7%.
Billups Eastern common

a

several

sales
is

United

Within the past year and

ima¬

ginative

the

7%

common

was

proved

and, more specifically,
to get exposed to the merchandise

and net

aggres¬
and

7%

stretch

to

and

by' far

in

moving ahead

pendent s,"

sive

gasoline

of

offering of 600,000 shares of common at $5.
The

working out very well since Bill¬
ups is growing fantastically,' tak¬
ing on competition in stride and

biggest "inde-

however,

there

and recent financing of one of the
of

retail
in

these,

course

leased
der

shares

Get Rich Buying Stocks"

to

of

amount

By DR. IRA U. COBLEIGH

,

There

Billups

8

The Commercial and Financial Chronicle

(832)

W.

Dealer-Broker

& Co., 52

$4.46

Halliburton

$1,383,834

Investment Recommendations

Jamaica, B. W. I.—Review—Bank of Montreal, Montreal, Que.,

New York

Also in the same circular is a review of

5, N. Y.

come
per share was $3.73
com¬
pared with $1.24 a share on the

Company.

Canada.
ITJS UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

For the

1958 months:

the like

period the road reported that, ex¬
cluding tax deferments account of
accelerated amortization, net in¬

Pressprich & Co., 48 Wall Street, New York 5, N. Y.
Hammermill Paper—Survey—Abraham & Co., 120 Broadway,

and Literature

in

27,1959

share as compared
or $2.39 a share

a common

with

Co.—Anaylsis—Van Alstyne, Noel

&

Wall Street,

Glidden

Thursday, August

New York 5, N. Y.
Oil Well Cementing Co.—Memorandum— R; W.

Grace

R.

.

.,

same

"

basis in 1958.

Inc.—Analysis—Herzfeld & Stern, "30" Broad Street,
New York 4, N. Y.
W. L. Maxson Corporation—Analysis—H. Hentz & Co., 72 Wall

Loew's

TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:

Street, New York 5, N. Y.
McCandless

Surveying—Report—Regent Securities
street, New York 5, N. Y.

Aerial
liam

Yields

Bond

and

Money

Corp.,

Burnham View

1911-1959—Bulletin—C.

Rates

F.

curities

1 Wall Street, New York 5, N. Y.
Monthly Investment Letter — Burnham and

—

current Foreign

Oklahoma

Letter.

Co., Ltd., 61 Broadway, New York 6, N. Y. Also
available is a review of the outlook for Plant and Equipment
Expenditures
in Japan for« 1959 and brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki
of the Steel Industry.

survey

Japanese Stocks—Current Information

Company of New York,
New

York.

New York

Inc.,

Ill

Yamaichi Securities

—

7,

Broadway, New York

'

Stocks—Comparison and analysis of 12
banks—Laird, Bissell & Meeds, 120 Broadway, New York 5,
City Bank

New York.

NYSE

Daily

charts

Charts—Individual

Stock

selection—$5.00

per

to

subscribers

stock per year on minimum order of 20

stocks; $4.00 per stock per year for 50 to 100; $3.25 per stock

for 100 or more—Traders Research
Bldg., Suite 375-32, St. Louis 1, Mo.

year

per

Arcade

Canada.

*

*

♦

New

memorandum

Addressograph Multigraph

Corporation

Salle

memoranda
Steel

on

Corp.,

Street,
Foote

New

England

United Insurance Co.

Associated

Testing

26

Gear

—

Analysis

—

Jesup

Gas

Cascade

&

122

are
Kaiser

Corp.,

Association

York

&

bulletin

Consolidated

&

Co., Inc.,

40

Interchemical

and

Wizard
las

City Club; field
day, Friday, Kenwood Country
Club.

Sept. 23-25, 1959

Boats

of Tennessee

selected

Bulletin

—

Co.,

N. J.

&

Co., 29 Broad¬

New York 6, N. Y.

way,

Merchandise—Memorandum—Kidder, Peabody & Co.,

17 Wall

Street, New York 5, N. Y.

r

Oct.

and

Western

Pacific

experienced

Railroad

drop

a

in

has

revenues

However, traffic from other

year.

has

decline.
for

the

than

more

Total

first

offset

freight

six

amounted

the

revenues

months

of

the

to

$25,404,842, a
gain of $3,081,314, or 13.8% above
the like 1958 period.

year

gain in revenues reflects
improvement in commercial

business and the growth of indus¬
trialization in the service terri¬

largest forwarder, clearance broker
of international air
cargo—with a

Of course,

The

second

half

re¬

road

by

recently

authorized

the purchase of six new 2,000 H-P
locomotives at a total estimated

cost of $1,303,000. Thesenew units
are
scheduled
to
be
delivered
around
new

fuel

Oct.

1.

They will be of
design and have improved
consumption characteristics,

with the result that normal main¬

and consolidator

tenance iis expected to be materi¬

ally reduced.

global network of

three of the

353 offices and
agents.

It is estimated that

new

units

can

work of four of the older

do the

ones

and

unit mileage should be reduced by

will be delivered around the

end

of this year.

Troster, Singer & Co.
74

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400




"

Teletype NY 1-376; 377; 378

expenses.
-

To

road's

box

cars

demands for incuand

maintain

the

competitive position, the
carrier is purchasing 100 new cars
equipped with special floors, roller
bearings and DF (damage free)
loading devices at a cost of $1,600,000. It is expected the new

the

balance

of

the

Western Pacific increased its
budget by $581,050 to provide for
track
and
yard
improvements,
the purchase of maintenance of
way machinery and for equipment
modifications.

Super¬
annual
Diplomat

Association

of

Banks

State

of

The

at

(Cincinnati, Ohio)

Oct. 22, 1959

Group of Investment
Bankers Association annual fall

meeting.
Oct. 25-28,

The combined total

of

expenditures called for by the
original
and additional budgets

1959

(Miami Beach,

Fla.)

year,

American

Bankers

Association

Annual Convention.

(Boca Raton, Fla.)

Nov. 1-5, 1959

National Security Traders
ciation

Asso¬

Convention

Annual

of

the Boca Raton Club.

to $3,003,150, which still Nov. 29-Dec. 4, 1959 (Bal Harbour,
Fla.)
';N':v '
considerably below the average
Investment Bankers Association
past few years. The road
Annual
Convention
at
the
plans to use a part of these funds

amounts

is

for the

modernization

start

d i

1

e s e

locomotive

of

the

maintenance

shops at Oroville, Calif., to obtain
greater efficiency and to further
the

reduce
tenance

cost

country

of

diesel

main¬

which

already is one of
carrier in the
measured by a unit

the lowest for
as

Americana Hotel.

April 6-7-8, 1960 (Dallas, Tex.)
Texas

of

Group

Investment

Bankers Association of America
25th

annual

Sheraton

meeting

the

at

Dallas.

any

basis.
ect

The total cost of this proj¬
is estimated at $1,200,000, of

Account Executive

which $300,000

The

year.

will be spent this
road
estimates
that

when

this work is completed in
1960, it should provide a return of
around 19% on the investment.

Opportunity

with

growing

security

for

forthright,

lyst

or

of

S-827, The Commercial and

net

Western

Pacific

has

been

in

income.

For the first six months of this
year,

Western Pacific reported net

income

of

$2,583,785,

equal

to

financial

public relations firm in New York City

attracting new plants
and industries to its territory. The
System
has
industrial property
valued at $20,000,000, much of it
purchased and being paid for out

The
active

meet the

lated

for

outlook

improvement in
position and the

cash

(Hollywood-by-

1959

the-Sea, Fla.)

Ohio

Because of the

earnings,

25%, thus cutting operating

some

Members New York

20-23,

the

at

Hotel.

cars

to

Express International Corp.

dynamic phase of development for this world's

convention

Hotel.

convention

sults will be adversely affected
the steel strike.

timely combination of events, both internal and
external, appears now, more than at any other time
in its 24-year
history, to be contributing to a new

(Philadelphia,

1959

annual

Warwick

visors

tory.

A

14-17,

Pa.)

National

Additional Brochures available—

Air

Exchange

ing at the Royal York Hotel.
Oct.

Railroad Securities

the

financial institutions

Stock

of

First Board of Governors meet¬

Inc.—Memorandum—Berry, Doug¬

The

For

(Toronto,

1959

Association

39th

sources

Draper Corporation—Analysis—Schweickart

Colonia,

Club,

Country

Sept. 28-29,

Corp.

Western Pacific Railroad

Inc., 55 Broadway New York 6, N. Y.

General

onia

Col-

outing at

tournament and
.

Also avail¬

Willis E. Burnside &

City)

York

(New

Canada)

from U. S. Government traffic this
—

1959

Corporate Transfer Agents As¬
13th
annual
golf

sociation

Fitzhugh, Inc., Stahlman Building, Nashville 3, Tenn.

issues.

2, Wis.

Detroit Tractor, Ltd.

24,

Sept.

Bank

Schroeder.

Hotel

Consumers Bankers Association

Place,

Power & Paper Company—Report—The
Company, 207 East Michigan Street, Milwaukee

the

at

of

37th annual convention

Women

.■

of

Association

National

Smyth,

Exchange

(Milwaukee,

Wis.)

„

&

-

day at Queen

Holiday Inns of America, Inc.

on

Nah

-

fling-ding at
Tee - See Country

Municipal Bond Dealers Group
of Cincinnati annual outing —
cocktail and dinner party Thurs¬

Canadian Oil Companies).

and

annual

Club.

Corporation — Analysis — William Blair &
Company, 135 South La Salle Street, Chicago 3, 111.

Water

Milwaukee
•

Mauh

Wesco Financial

5, N. Y.

reviews of Idaho Power and West Penn Electric.
a

sociation

Sept. 17-18,1959 (Cincinnati, Ohio)

Electric Illuminating—Review—Bache
& Co.,
36
Wall Street, New York 5, N. Y. In the same circular are

is

Rockford Securities Dealers As¬

of

Corporation Ltd.—Analysis—McLeod, Young,

Canada,

III.)

(Rockford,

1959

11,

Sept.

-c,.'-/.-A

Cleveland

able

■

&

—

Corporation—Study—Filor, Bullard

Co.—Review—Alkow

New

i 10: Brunch at Welty's Restau¬
rant; luncheon at Chicago Yacht
Club; cocktails and dinner at
University Club. Sept. 11: Field
Day and Outing at Elmhurst
Country Club.

In the same circular are data on

Corp.

...

Broadway, New York 4, N. Y.

Budd

Company

Ltd.

Swasey — Analysis — Reynolds & Co., 120 Broad¬
New York 5, N. Y. Also available are reports on BeechNut Life Savers, Inc., Railroad Freight Car Loadings, and a

of America.

Laboratories, Inc.

of

Warner

Also available

Machine

Electric

&

Steel

of

Cement Co.

(Chicago, HI.)
Municipal Bond Club of Chicago
23rd Annual Field Day—Sept.

Sept. 10-11, 1959

5, N. Y.
Transmission—Data—Stanley Heller & Co. 30 Pine

memorandum

C. Allyn & Co.,

111.

&

studies

are

Canada

S. Freight Co.—Report—A. M. Kidder & Co., Incorporated,
1 Wall Street, New York 5, N. Y. Also available is an analy¬
sis

&

Analysis — George,
Co., Inc., 30 Broad Street, New York 4, N. Y.

O'Neill &
Boise

Chicago 3,

Bros.

Conklin

Witt

De

way,

Anheuser-Busch, Inc.—Memorandum—A.
La

—

York

Oil, Texaco
U.

Lamont, 26 Broadway, New York 4, N. Y.
South

Bulletin

Company; Ltd., 50 King Street, West, Toronto, Ont.,
Canada. Also available is an analysis of four Canadian In¬
tegrated Oil companies
(Imperial Oil, British American

Bridgeport Brass Co.

on

—

Weir &

Also available is a

Wall Street, New York 5, N. Y.

1

available

and

Traders Finance

1

Co., 74 Trinity Place, New York 6, N. Y.
Allied Chemical Corp.—Memorandum—Francis I. du Pont

Co.

Street, New York 5, N. Y.
Clevite Corporation.

Singer

Corp.—Brochure-—Troster,

IN INVESTMENT FIELD

Co., Ltd., 25 Adelaid Street, West, Toronto, Ont.,

Also

Texas Gas

&

Co.,

Events

2,

Texaco, Inc.—Memorandum—J. A. Hogle & Co., 40 Wall Street,

Broadway, New York 4, N. Y.

International

Robinson

Gamble

Canada, Ltd.

up-to-date com¬
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
yield and market performance over a 20 - year period—
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.
Railroad Equipment Industry — Analysis — Purcell & Co., 50

Express

Corporation, 90 Broad Street, New York 4, N. Y.
Natural Gas—Report—Thomson &
McKinnon,

Knowles &

Incorporated

Over-the-Counter Index—Folder showing an

Air

Co.,

Organization, Inc., 120 Broadway, New York 5, N. Y.
Pepsi Cola Company—Analysis—Parrish & Co., 40 Wall Street,
New York 5, N. Y,
Philadelphia & Reading — Analysis — Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
Pittsburgh National Bank—Analysis of the proposed consoli¬
dation of Peoples First National Bank & Trust Company and
Fidelity "trust Company—Paine, Webber, Jackson & Curtis,
25 Broad Street, New York 4, N. Y.
Rochester Telephone Corporation — Data —Hornblower &
Weeks, 40 Wall Street, New York 5, N. Y.
Royal Industries, Inc.—Analysis—Woolrych, Currier & Carlsen, Inc., 210 West Seventh Street, Los Angeles 14, Calif.
Sealed Power Corporation—Analysis—A. G. Becker & Co.,
Incorporated, 60 Broadway, New York 4, N. Y.
Shawinigan Water & Power Company — Analysis — Ross,

Securities

a

&

Broadway, New York 4, N. Y.
Pacific

Also avail¬

Japanese Stock Market—Study of changes in postwar years—
In current issue of "Nomura's Investors Beacon"—Nomura

Cement Co. and

Ginberg

Corporation—Analysis—Strauss,

Inc., 115 Broadway, New York 6, N. Y.
Publishing Company—Report—Stone & Webster Se¬

Meredith

Company, 15 Broad Street, New York 5, N. Y.
in

Wil¬

Co. Inc.,

Childs and

able

15

meeting
creative

young

ana¬

financial reporter who enjoys
public

and

takes

pride

in

writing. Reply in confidence,

stating experience

and salary.

Box

Financial

Chronicle, 25 Park Place, New

York 7.

Volume

190

Number

5876

.

.

The Commercial and Financial Chronicle

.

(833)
parently

American Investments Increase

such

by

This

a

danger to sterling unconnected with the
In making this point, Dr. Einzig

differentials

>

fears of

dollars

by

both

on

individuals.

As

inflow of capital

protection

against

but is.mindful
false feeling of

LONDON, Eng.
vestment

in

whether

it

American in¬

—

British

industries
the

assumes

the acouisition of

by

—

of

form

British

equities

American

direct

in¬

recommends

they

it

his

can

by

generate

in

a

in

been

to

ing.

filiated

some

extent

Britain

of

sterling

1959

to

in

and

as

be

any

for

protected by hedg¬
even if the af¬

in Britain

were

pre¬

dollars,

there is nothing

prevent the parent firm

in

the

United
ward

non-stop
increase
in
,

States from
selling for¬
sterling whenever a devalu¬

the

ation is

British

gold
lar

and

Paul

This

Einzig

dolhas

in fact done

was

r

contri¬

also

feared.

siderable

;

It

reserve.

scale

ward

"Great

West

outside

London

capable

of

for

seeing

welcome

noses

fication

as

who

their

beyond

it

without

quali¬
strength

of

source

a

in¬

are

and for the British
economy. Those capable of seeing
a

sterling

little beyond their noses realize

that,

of

buying

American

one

dications of
Even

guard

tain's

item

Bri¬

on

balance

current

of

pay¬

ments.

meantime/

investors

operations

is

certain

to increase

as

a

increase
in

in

will

purely

to

Nor

is

American

the

in

investment

the

on

such

further

a

investment
factor

character.

indications

are

equities is

be

continue

result of

American

Britain.

that
in

con¬

British

increase.

Such

holdings are likely to
considerably as a result
Conservative victory at the

overseas

increase
of

a

general
this

election.

far, is that
next

result

of

very

the occasion of the'

on

sterling

extent

The

if it should go

process,

the

scare

relative

of forward

selling of ster¬
ling due to hedging by investors
will be higher, and the relative

Becoming

or

of pure speculation, inter¬
arbitrage,
and
commercial
hedging will be correspondingly
lower.
It is a change which de¬
est

are

the

serves

This does not
increase

an

forward

mean

in

Britain

of the familiar in¬

thing

on

balance.

flight from the

mean

is

new

American

in¬

risk

of

without

a

sterling

sterling

more

it

is

having

to

during

ap¬

that

the

tends

re¬

of

is

invest¬

not

good

a

sterling
reason

reinforce

to

sterling's ' defences
a

a

larger gold

danger

largely

American

from

and

pany, underwriter and investment manager
its parent company, North American

of the funds, and of
Investment Corporation.
V'!

Mr.

in

in

the

in¬

result¬

reserve

inflow

other capital

of

from

Coleman

America

when

wealth

There

are,

of

situation

founded

North

a

1952

and

in

a

Investment

wider group of

Fund,

a

investors, he established Common¬
mutual fund investing in common stocks, in
Income Fund, investing for current in¬

1957.
on

Total

assets

of

these

companies

were

This advertisement is not

Mr. Cody has been Executive

an

Britain.
extent

Few

people realize the
which sterling is apt to

offer to sell

or a

to

become
with

increasingly

the

growth

capital in Britain.
British

the

American
be held
a

1954.

The

new

investors

more

or

be

realized
in

some

acquired

of The

National

a

member of the Board of Governors

Association of Investment Companies.

solicitation of

an

offer to buy these securities.

NEW ISSUE

of

115,000

likely to

are

of

as

it is likely

soon

as

Air

set¬

a

Street, or a rise in
the London Stock Exchange unac¬
companied
by a
corresponding
rise

Wall

in

Street,

has

Products, Incorporated
Common Stock

reduced

the differential between the yields
on

(Par Value $1 Per Share)

both sides of the Atlantic. The

increase

in

Scares

less permanently,

Wall

American

holdings

tends to widen the range of fluc¬

tuations

ling

It

London

also

American

the

exposes

Stock

ster¬

withdrawals

sudden

to

with

the

on

Exchange.

capital

OFFERING PRICE $46 PER SHARE

of

unconnected

degree of inherent con¬

fidence in sterling.

Such considerations
erate

far

as

do not op¬
in

Copies of the Prospectus

investment

as

undersigned and others

Britain

by American industries is
concerned.
The capital invested

here

is

more

or

less

fluctuations

Exchanges,

fluctuations

dollar

to

remain

on

the

two

regardless
the
sterling-

and

of

American

rate.

firms

such
ups
and
downs, for the sake of benefiting
disregard

being
established in
the
sterling area market.
This does
not mean, however, that the ac¬

cumulation of this form of Ameri¬

investment in Britain does not

represent dangers to sterling.
is

American firms are
not likely to sell out their invest¬

Kuhn, Loeb & Co.

Reynolds & Co., Inc.

Eastman Dillon, Union Securities & Co.

Kidder, Peabody & Co.

is

Drexel & Co.

Glore, Forgan & Co.

Lehman Brothers

Smith, Barney & Co.

Goldman, Sachs & Co.

Carl M. Loeb, Rhoades & Co.

White, Weld & Co.

A. C. Allyn and Company

Baker, Weeks & Co.

a

sterling

scare.




What

Dean Witter & Co.

Hemphill, Noyes & Co.

Incorporated

Hornblower & Weeks

Lee Higginson Corporation

true,

ment in British firms the moment

there

State only from such of the

any

from

It

any

lawfully offer these securities in such State.

here

acquiring an interest in British
firms, or establishing a subsidiary
firm' in
Britain,
can
afford to

can

be obtained in

less permanently, regard¬

of

Stock
of

meant

may

as may

Shields & Company

Stroud & Company
Incorporated

August 21,1959

,

is

of Securities Dealers and is the Chairman of its
Investment Com¬

panies Committee. He is also

offering is made only by the Prospectus.

by

President

member of the Board of Governors of The National Association

American

While

equities

large proportion

to

back

vulnerable

of

than

Vice-President of the Common¬

wealth Group of Mutual Funds since

crease

The

more

June 30.

that

developing as a result of the in¬
in American investment in

Cor¬

1932, he formed Common¬
balanced mutual fund. To meet

Commonwealth

$185,000,000

a

American

In

other
is

moreover,

the

he

Investment Company,

the needs of

wealth Stock

Vulnerable

aspects

pioneered in the investment company industry

poration in Son Francisco in 1925.

the

reserve.

that

the

SAN

FRANCISCO, Calif.—S. Waldo Coleman, former Presi¬
dent of the Commonwealth
Group of Mutual Funds, has been ad¬
vanced to the new position of Chairman of the
Board and Robert
L. Cody was elected President to succeed
him.
The action was taken at a
meeting of directors of the three
Commonwealth companies. Mr. Coleman also was elected
Chair¬
man and Mr.
Cody President of North American Securities Com¬

come,

make
For this

of the gold

crease

that in itself

What it does
increase of its

to

expedient

extent

the form of

ing

is

vulnerable.

There

investments, by sell¬

those

American

in

con¬

of

tactics.

ment

been

are in
a
position to safe¬
themselves against a real

imaginary

attention

sponsible for the shaping of Brit¬
ish foreign exchange policy and

number

factories

long

individual

depreciation,

ing

More

a

extent

extent

realize their

Sterling

the

district

pound.
vestors

a

a

by

(a

where

branch

sidered

American

debit

Road"

has

as

dollars

of

situated)

the capital is invested,
the payment of dividends on the

capital will constitute

con¬

In

once

considerable

a

sterling scares in recent years.
banking circles in London for¬

to

Those

on

during periods of

buted towards the rise of equities
in London. The process is likely
continue.

Changes in Gommonwealfh Funds

in

.

the

Official

ap¬

important than it was
on
previous occasions

or

tinental
are

case,

firm

forward

the

flights from the pound.
potential extent of

There

cluded
by an interpretation of
exchange regulations from buying

re¬

sponsible- for
.the firmness

1957

of

legitimate risk, and
sterling assets is
legitimate
interest

cover

can

In

In

investment

more

en¬

which

has

1957.

ex¬

regulations, they

.by

—

an

has

American

much

the possession of

American

on

sooner or later another
is bound to occur, and when'
occur the', factor of
hedging

scare

country

residents

p a ti o n
i n
British
firms

firms

done'l

The

of

regarded

fact

investors,

likely to do is to hedge
against a depreciation of sterling
by buying forward dollars on such
occasion. Even though
they have

titled to

Sterling Area generates amount received is apt to be re¬
feeling of optimism. An lent -abroad.
This
is
a
danger
large proportion of the which have to be borne in
mind.

false

unduly

it does

of

change

partici-

a

sterling
greatly
increased.
though at present sterling
enjoys the confidence of overseas

are

status

London

Even

The writer favors

how

to

rounds

of

equities

from the point of view of the

of

or

increasing

reserves.

as

in

American

in

optimism.

the

individual

vestors

"•*

represent

confidence

sterling depreciation and, in turn, causing buying forward
selling forward sterling besides realization of investments

reinforce^terling with still larger gold
the

inherent

or

some

the

on

outside the

depreciation of sterling.

a

was

scare

changes in stock yield
raising real or imaginary

hedging by investors, the noted columnist
V

Britain

sees

sides of the Atlantic

By

preciable scale during the sterling

American corporate and individual investments in

sterling.

through

By PAUL EINZIG

;

further rise

a

periods.

they stand to benefit

Stock Exchange without exposing
themselves
to
capital
losses

Sterling's Vulnerability
^

dangerous

means

9

The Commercial and Financial Chronicle

10

.

.

Thursday, August 27, 1959

.

(834)

of Land Rent

Measurement

"Single Taxers"

And the
t.

Associate Professor

.

of Economics, New York University
New York

City

of land rent and land value reveals

market

The

land

the defini¬

most

'

-

"

"

that approximately 24%- of the
estimate of land rent is attributr

able to private tax-exempt ahd.

of

is

property

the-value

value

with the value of GNP of $415

of

of

investigators

billion for 1956,

*• a

•

v

is not

to find the data

of structures.

(2)

ratio

The

land

non-farm

cited

that

depreciated

b

di

of

Charles

R.

struc-

of

Chairman

first

be

Area

of

Rlyth, Founder and
the

nationwide

•considered

relatively

statistics.

nomic variable.

place
is

A second

rent

land

is

un-

that

of land rent

of measures

absence

a

possible reason for the

it

is difficult to

measure.

.economic

Thus, Simon Kuznets distinguish¬
es between analytical and institu¬
tional
classifications
of
income
measurements. The analytical

theory. In

classifications

\

m

p or

tan t

variable

in

discussions

of

est

available
the

for

upon

is

pends
Ernest

was

Kurnow

estimated by

come.

by cumulating

at his home in

expenditures

data

feasibility of the single-tax doc¬
trine. He concluded that:

to

.

.

large enough to pay

twice over. In

charges

nearly

1910, however, the
been
barely

have

would

rent

Civil War, the

before the

governmental

sufficient to

pay

off the various

governmental budgets . . . and,
with the growing
concentration
<o£ activities in the hands of gov¬

that rent will
soon
be a quantity far too small
to meet the required charges.1"
Thus, ■ King's study convinced
Atim that a single tax would not
ernment it appears

institutional classification

analytic requires that the
investigator go behind the pub¬
lished statistics and reclassify the
provided

enterprises

by

in

Hillsborough,

cur¬

have

.

'

T

Land

Value

Rate

Brunswick, N. J.

reported on was made pos¬
sible by a grant from The Lincoln Foun¬
dation.
It is part of a larger study on
went theory and rent measurement.
Asso¬
ciated with him''in the study are Profeseors Joseph S. Keiper,
Clifford D. Clark,
wad Harvey H. Segal—all of New York

Land rent

1 Willford

The

Isbel! King, The Wealth and

Macmillan

the United States,
Company
(New York,

W22),

p.

155.

=

Land value x

.

..

value

ernments

.

,,

method

,,

which estimates

m

for

the

were

of

assessed

property

ratio

for various classifications of prop-

return

of

Rate

theoretical interest in such meas¬
seefn

to

+

in

erty

each

state.

The

ratio

of

Rent

Data

of

come

national
income
.

persons

income
of

persons

part

accounts.

persons

the

.

as

is

of

the

Rental

defined

as

monetary earnings of

from

the

rental

of

real

on
Simon
Kuznets, National
and
Its
Composition,
1918-38,
I, National Bureau of Economic Kesearch (New York, 1941), p. 95.

2 Based

determined

was

H-fA

data

from

assessment

published by state and local

government agencies. These ratios

'vTw?eS

aPPraisals
The

r+8a+m

■

institutions.

use

rellabl®

™

basic data should offer

a

of

means

verifying Goldsmith's estimates.

Taxes.

formulation,

the

the

that

tax

of

course,

method

based

on

assess-

landowner

burden

and

ments, however, can be applied
only to taxable real property other
than public
utilities. For other
categories of property—e.g., pub-

as¬

bears

shift

cannot

part of it.

original
land

In any event, the
formulation — that neg¬
—

rents.

formulation
tends

•Shortly
after

/ gradu¬
ating -from
ft.

Charles

Bly cli

•

Aihherjst

Col¬

lege * iiv

1905,

s^a^.e4
c^r?,er in
£irm
George H. Burr & Co., where
he remained until coming to San
Francisco in 1969 to join the investment banking firm of Louis
sloss

Co.

&

In

1914,

Blyth

Mr.

with

Co

&

Roy :L.
Shurtleff;
George C. Leib and Dean Witter,
in 1924, Mr. Witter, sold his interest

and

retired

ization,

from

which

nresent

the

later

organ-

its

assumed
■

name

the'

Under

leadership

of

--

Mr.

Blyth' the firm Srew steadily in
importance. /The

and

slze

nranch

office

first

established

was

in

Los Angeies, and in 1919 a branch

opened in New York.

was

Since

then, the firm has established offices in most principal financial
Centers
and today maintains 24
offices
throughout- the
United
states

to

"the

the

on

overstate

od

hand

on

laneous

values

have

in

been

the

Tn

addi

de¬

used to

were

subsoil

wealth.

v

investment

Blyth
P^ayed a dominant role in the
Mr.

ana

Pthi cf

?

+

hi*H^athh!

At

f

California. At his deathf he was a
director of several corporations

of

The table below summarizes the

regu¬

preliminary

United

„

findings

land

to

as

values.. (The final figures will ap-

States in connection with studies

in

pear

to

report

a

be published

later in the year).

Pacific

and

pany

sion

The Preliminary Findings

other."

estimated

reports

termine

.

Land

his

to

^verwentp^andmi^el- gggg SSSS^SSSt&

the

purposes of the study it was
assumed that these errors tend to

larly

u^pd

:

the

cancel each

"theroforo

was

original

one

and

addition

utilities, private tax exempt,
and public—the Goldsmith meth-

tends to understate

Thus,

In

banking^ activities

lie

other to understate land rents. For

Income

Vol.

e

•

This

sumes

Available

of

Misuses

ancf improvements for^thif s{udv

The

for

account

h

.

was^re- formed the firm of Blyth, Witter

value to market value of

-

published data to get To the extent, however, that land
values reflect a speculative ele¬
good approximations "by the ex¬
penditure of time and ingenuity." ment; land rents would tend to be
However, the opportunity to get overstated on this basis. On the
at the original data is usually lack¬ other hand, it may be stated that
ing and the possibilities of adjust¬ land rent less taxes should be cap¬
ing the reported data are severely italized to determine land values.
limited.2
This difficulty of sta¬ Thus, 1 ;
'
"
tistically
measuring
land
rent Land rent =
when coupled with the lack of
(Land Value x Rate of return)
would

the

m

cisco office.

in

^University.
Mwcome of the People of

';

made

lects taxes

University, New

return

of

or,

Commerce does measure rental in¬

The research

.

moved by the 1957 Census of Gov-

Science at Rut¬

gers

.

assessed-

Land rent

=

readjust the institutional break¬

ures

r

the San Fran¬

.

or

the absence of data on land rent.

i

of

founded, mak¬
ing his head¬
quarters
at

and of the ratjos of the value of

magnitude, this study was under¬ has. been .criticized for understat¬
taken to estimate the value of ing the value of structures and,
land rent.
'*
hence, the associated land values.
Also, a relatively small number
Method Used in This Study
:
pf appraisals are used to estimate
The basis for measuring land the ratios of land value to that
rent in this study is land .values. of structures.
4-w
Land values may be considered as
Ip this
stud^ both of the methland rents capitalized at the cur¬
ods
rent rate of return.
descried above were used,
Thus,
:;v
Part of the shortcoming of the

individuals. Another alternative is
down

active

head.
f

was

old..
Blyth

was

value

market

He

years

Mr.

conflicting claims land to,the value of land and im¬
made concerning; its provement.
Goldsmith's
method

been

*Speech delivered by Prof. Kurnow at
Conference of the Henry

of Social

76

of land rent and

any

H&e 15th Annual

to

Calif.

.

Although land rent is not meas¬
ured- today,
the Department of

C«x>rge School

value

assessed

measures

no

the

to

King's sole interest in the value
of land rent was to evaluate the

rent bill was

under

which statistical data occur. To go

King in connection
with his study of wealth and in¬

oil

classification de¬

categories

upon

from the

I.

Willford

..

The institutional

year

It

1915.

based

those

are

the economic reality
provided by economic theory. . . ."

the lat¬
figure

fact,

exists

'

•

.

there

Since

in-

value of struc-

The

for

adequate

vtii

vestment

the support of prises only a minor portion of the rent 'prices. This method was used
government budgets. In his later national income today. It has been by Raymond W. Goldsmith in con¬
There has been little interest
work he did not measure land claimed by some that if figures nection with his perpetual inven¬
shown by economists
in recent
rent or even discuss it as a sepa¬ for land rent were available, they- tory of national wealth.
years in the measurement of land
would indicate that land rent is
rate entity. Perhaps the investiga¬
The main shortcomings of the
rent. This lack of interest seems
tors who followed King reached relatively more important than we method based on assessed values
to stem from
are
led to believe by the erro¬
the same conclusion. In any event,
in. the past has been the question¬
two
main
they ignore land rent as an eco¬ neous use of the national income able: quality- of
the
ratios of
■causes.
In the
Neglected

A

'

s

.

_

banking firm of Blyth
& Co., Inc., passed away Aug. 26

tures is determined

to demonstrate that land rent com¬

value

the

of
to

it is applied to the value

on

,

gov-

CHARLES Ry BLYTH

nets, Keller, Ingalls)

tures

with the $116

or

billion spent by all levels of
ernment during that year.

national

of

wealth (e.g., F.T.C., Doanne, Kuz-

the rent con-,
theory—in¬
Nevertheless, it'

for rental income of persons

-

improveThis method was used by

ments.

as

uncommon

;

;

into

the

and

cluding land rent.

cepts

-

value

divided

then

.

of perons.and
of
economic

come

methods

general

The assessed value of real

(1)

pointed out, there can be no iden¬
tification between the rental in¬

governmental expendi¬
tures come to $116 billion. These data may be of more than casual
interest to those interested in the economic theory of Henry George
and the "single tax." Moreover, the one time budget consultant to
tbt Turkish government adds, 24% of the estimated land rent is
attributable to private tax-exempt and to public property.
estimated land rent to be $20 billion whereas

Two

been used.

property is ^adjusted to market to public property.. The relative
price leyel by the use of the ratio importance of land rent can then
of assessed value to market value, be gauged b'y comparing its value

the compilers of these:
have
very
carefully

tion, and
statistics

Pr§1. Kurnow's statistical study

from

obvious

is

As

I

'

have

royalties received by persons frompatents, copyrights, and rights to
the natural resources."
:
;\

KURNOW*

By ERNEST

wealth.

of

property, except those of persons
primarily engaged in the real es-;
tate
business; the imputed v! net
rental returns to owner-occupants
of non-farm dwellings; and the

Co.

Gas

Transmis¬

also

was

Stanford

The

tute,
sity,

He

a

director

Research

Insti¬

trustee of Stanford Univera Vice-President of the San
Francisco Opera Association and
a

The San Francisco Symphony; He
also named Chairman of the

was

California

Olympic
Commission
Olympics to be held
at Squaw Valley, Calif., in 1960.
of the Winter

Estimate

The undersigned placed

privately $13,450,000 of these Securities with institutions purchasing them for investment
$1,550,000 are to he ta\en down not later than October 10,1959.

of

Land

in the United

Values

States

In

.

1956

The remaining

(in billions of dollars)
Type of

vaiue of Land

Property

and imprvmts.

i

Tax

13.7

253.8

—_

Subsoil

15.4

44.1

Exempt-Private__

230.8

143.1

fornia.

In

World

chairman
Cross

of

of

and

Senior Notes Hue 1974

*

*!

$338.6

amount

below

the

1938-39.

and

estimate is.

estimate

the

The

1922, 1929-30,
for the

reasons

between

the

results

of

this.study and those of Goldsmith
are now being studied.

&

American
President

was

Co.

Red

the

of

; /

Opens

-

Own Investment Office

Oklahoma"

city,

Oscar L. Johnson is

okia.

—

conducting his

investment business from of¬

Own

fices

at

Street.

2125

He

of

cer

Northwest

was

formerly

Honnold

and

Inc., and Honnold & Co.

25th

offi¬

an

Company,
"
: "•!
'

Form Oregon Underwriters
-

difference

,

was

Francisco

Kuznets for 1922. and the esti¬

of

mates of Doanne for

-

II, he

San

338.6

This

billion.

Blyth

12.0

1,145.4

-

relatively high when compared to
Goldsmith's estimate of approxi¬
mately $215 billion for 1955. However, Goldsmith's estimates of land
value
were
proportionately the
same

Dean Witter

War

the

city's War Chest.

The estimate for the value of land
is

Co.

Mr.

Oscar L. Johnson

815,000,000

&

I,

65.7

12.0

Assets

Total

F. Eberstadt

War

Chairman of the Liberty
drives for Northern
Calias

Chapter
692.4

—

Utilities—

Public

Company

Land

Ot.ior chan Public

Utilities)
Public

Walter E. Heller &

Loan
Value of

rfeal

Taxaolp

World'

served

If

turn

of

we
on

land

assume a

now

land
rent

of

rate of

re¬

6%, the estimate

would

be approxi¬
Obviously, if
we
were
to
assume
a
higher
(lower) rate of return, the esti¬
mate'would be higher (lower). It
must
be
remembered, -however,
.

mately

$20

billion.

*

•*»

V

-

-

(Special to The Financial Chronicle)

SALEM, Oreg.—Oregon Under¬

writers,
with

,

Inc.

offices

Building to
business.

has-,-been
in

formed
Masonic

the

engage in a securities

Officers;

are

" Lincoln

•

August 27, 1959.




Hanks,

President;

Vice-President

O.

and

E.
M

Aylett,
a x

Hanks, Secretary-Treasurer.

i

n e

Volume

190

Number

5876

The Commercial and Financial
Chronicle

(835)

A nl-/MVk^f-i/\^

'

1

_

1^ '

•

.

•

A

f '

Em

an investment in automation must

"

Automation: Xttects On:Uni0.nS>

.-".'HP®

ating

prevent

Company, Neiv York, N. Y. \'
can

so

"

(3) increasing importance of

force; and (4)

continuing trend toward

to

causes

mass

unemployment; explains what

In

order

to

avoid

generalizations

either

time.

easy

purposeless

or

f7,'

..

.

cific

•-r

((1)

and

and

ferent

•

is

tinuation
elaboration

g-r a n g e

technical

de¬

velopments?
(2) What are
the

a u

K.

iNormrup

anything

It

new

is the logical

t

_

ii

embraces

now

•PI

kl

Aitrn

food

a

flowable

the

of

and

force?

labor

tot

oh

the

ofnriolc

w~»

materials
processes

essentially

are

continuous in nature.

r,f

nafnro

where

involved

are

professional

workers

by

and

almost

the

jj

In these in-

oml

;

;

■

tion mandatory.

;

?

.

a'

,

To guard against
*

let.

it

....

first

us

define

■

...

-

.

-

of

the

ln

the

Tn

terms.

To

labor
is

most

merely

r

or

improved

force

part

mechanization

•

.

reached

production .untouched :by

their

trol

World

War

II.

shift

in

../

which

individual4

permit

Hou?ly

engineering

is

the

steady influx of workers from
farm to plant—a trend which antedates World War 11. The other
js; the increasing importance of

electronic controls. More—

the spread of electronic

over,

Dl0vees

'

actually

were

to

23%

ratio

1
To

manually tied pretzels.
Electric's Appliance

of

watch

parts

many,

and

ten

years

and

withdrawal

of

women

from Work for

early .marriage and
childbirth, and then their return,
apparently permanently, after the
children

start

school.' I

mention

these developments because the
largest source of unskilled and
semi-skilled
these

labor

two.sources

in

be

well

may

the

men

enine

hp

f 8

2

un

8

^

for example,
machine skills, this

in

are,

from

Statistics

'

reproduced
V

y

U.

and

in

S.

Bureau

Federal
an

wern.CK

Reserve

unpublished
ot

t.«e

of

Labor

Board,
by

paper

reaeral

Keserve

Board.

machine

more

announcement

creasingly

important

next decade.
Another
tion

of

the

about

the

popular
effect

assump¬
automa-

of

trol

of
or

may

effect

e

automation will

sibility.

The

skills as well
fxrrkQ
a-P

of

urovlr

as a more dignified
f V*
hnnln
On the
basis of

work.

r*

tbat

many

displacement of labor because existing workers lack the training,
capacity or both to perform in an
automated factory.

<2*

IT1

a

that

tion,

may be even more of a key
employee in the automated factory, depending upon the desigik

automation

provided

are

high
advancea

Jobs and Attitudes
We have all read about the
com—
r~. " r~:
"*X,r

de§ree of technological
ment short of automation has alrpaHv been
aphievofl

The

innvpacft

.

nAii_ riif+Snl fOLr!
ence IlCtlOn Wri

XdtewotlV^e

f.nanSe lr0^ macnine to automatlon'3
.?
' :
.

It

now

appears

J.

R.

Management.
of

Business

Bright,
Boston

that

greater

Automation
Graduate

Administration,
pp.
170-197.

University,

skill

Harvard
The dis-

1958,

cussion

of

^requirements

and

School

is

based

mi

.

Such

Tnd mTes
°
•

■

1

exaggerations

offer to sell or a solicitation of an offer
offering is made only by the Prospectus.

to

buy these securities.

Ridge Properties, Inc.
450,000 Shares

(Par Value $8.00 Per Share)

ations

information and ^per-mathematical °Per~

suclr information

on

Recently
made

largely

field

by means Of electrical engineering

developments.
(

Defined in

mation

•

.

^.Qn

continuous

to

has

•

and

been

manufacturers

of

many

development

,

simpler terms, auto-

means

automation

available

small lot producdifferent parts. This

450,000 Shares

-

—-

which

we

call

Class A Common Stock

"flexible automation"—is achieved
by equipping individual standard
or
custom
production ^ machines

auto-

production, linking together
than one-already mechan-' with
proved, low-cost electronic
V ized operation with the product. controls to automate
virtually any
automatically transferred between production process. Machine
"prov two or among several
operations, -grams"
for operations such as
Automation is thus a way of workdrilling, bending, milling, punch-,
based upon th'e concept of producing, shearing, turning, boring, or
tion as a continuous flow, rather
welding — can be quickly and
than
processing by intermittent easily set up or mpdified to
promatic

(Par Value 10f Per Share)

more

,

.

.

Offered

only in. Units' of

one

share of 60? Cumulative Convertible Preferred

Stock and

one

share of Class A Common Stock.

*.

—

'

batches of work.

ment

equip-

automation

make

that

sible have been with

for

us

pos-

a

long
'

"

"

*

*An

address

Summer

by

Labor

of

Northrup
Conference

Mr.

Management

and

Industrial

at

of

the
the

Rela¬

the
University
of
Michigan—
Wayne State University, The Labor and
Industrial
Relations
Center,
Michigan
State University, St. Clair, Michigan.
tions,

*

Both preparation and production time can be

substantially
reduced
with
big
savings in costs and big advances
in the values offered customers.

Institute

1 G.

B.

Baldwin

"Automation:

Problems."
trial

1954,

A

and

New

Annual

Relations
pp.

Price $10.00 Per Unit

duce different parts.

and

ideas

the

of

Most

G.

P. -Schultz.

Dimension

Proceedings,

Research

to

Old

Indus¬

Association,

114-128.




Automation

is

thus

being extended to

new

as

developments and new costs
alter the economics of the present
vs. the new method of
operations.
The

manner

automation
upon

such

Copies of the Prospectus ntay be obtained from only such of the several Underwriters
including the
undersigned as may legally offer the securities in this State.

constantly
horizons

new

Cruttenden, Podesta & Co.
Walston & Co., Inc.

J. R.Williston & Beane

Kalman &

and

speed with which
will
spread
depend

factors

as

design life, the period

anticipated
over

which

Boettcher & Company

been

a

and TV gagsters and a
great SOUrce
s

60^ Cumulative Convertible Preferred Stock

coming "automatic factory.",

t

of fear for many
people who won-

Continued

an

•

no workers.

have

6*"€?at SOUJTCe of Comedy for radio

Bright's work.

The

e

clev^r

men' popular scl"

Winery and virtually

much of the speculation about the

store

o v» rf

properly, or with getting
equipment back into opera-

developments in the automobile industry which have led to

and

ip

The evidence. however, is that and make*"uP of the job.

familiar with

are

a

equipment, the
more costly is downtime likely to
HP
PPh Qllin
a/T
be. 'I1 h
The mechanic ixrVl
who is nh
charged
<on

'.

the

be very

equally unsupported evidence, the with shutting-off equipment^not
more
"
"
1
pessimistic
see
wholesale working

appliances being manufactured automatically. Ando I am
sure

the

i

expenditure

more

ments of

form complex

■

work

August 26, 1959

Coral

'

interesting effect of au¬
expanding utiliza¬

Although this

NEW ISSUE

seg-

during
?

'

skilled mechanics as con¬
dial operators or
observers.

(3) The development of computing machines which can record

/

}

,

/

di-

mechanisms. Job specifications
and categories based on this marriage of mechanical and electronic
skills will probably become in—

uPSrade labor by requiring greater ™™Panyimakes

is not

-

,

more

are

tion on ski11 appear unsupported inactive compared with the more
by investigation. For example, the traditional activity of machinists,
literature of automation is replete it can require a very high degree
with enthusiastic generalizations of knowledge, skill and respon-

on

This

as

tools

rected and controlled by electronic

future.

Skill Changes

Many
tions

also risen in importance

tomation is the

•

later, and

to

annears

PP.
who

million

one

mechanical,

-

pneumatic and hydraulic control
systems and servo-mechanisms.
The requirement of a sbund elec-

more often reduced, or unchanged,

only 1% above
0my 1 /o aDOve

all-

repairmen —machinists

tronic schooling for machinists has

.the

operating skill requirements

in

con-

for

Qualified to handle gnd to repair
complicated
electro

tronic techniques.

,r

need

been

3 See

human, hand

a

the

wOmen-iri the labor'force.4" A
post
World War II development has

peak

post-war

General

Can

elec-

or

One

workers

"iqK? TnVni" hmirrv "om"

park in Louisville, Kentucky, you

opera-

out. human

electrical

of

design

inspected, and controlled withcontrol by means -of

or

skill

to retain the traditional

^t

tions to be performed, testod and/'
v

the

necessary

servo-mechanisms

or

handle

Tw0°fher trends in the labor around

employment^nto

fe"31953^nd
^
3

because buyer preference made it

by

devices

day-to-

_

rv

schooled

Cate

human

means^ of mechanical
engineering techniques. <
(2) The use of 'feed-back" con-

v

elements

decided

since

of the

_

processes. Pis- "
tens and cylinder biocks, condensers
an:j
refrigerator doors, and r"\
many
other parts and products,
are processed
automatically. Pret;
zel-bending machines can tiupli-

(1) The integration of conventionally. -separate
manufacturing

hands

electricians'

of whom must be trained to

some

tinuous production

talking about

operations into lines of continuous

;

hone

p is one

®

.

positions.

2
-2 Data

ingenious Iways to make
separate items flow through cOn-

these three definite developments
in our technology: ^
r
"

^

ex-

found

general technological progress,

shall therefore be

*

eroun

significant

worker

the

.

to
to; supply better values to
customers,
irianufacturers have

means
something
distinguisnable from

definite and

between

changing character of the

sjty
sity

this tendency,
our

45%

and*technical

sional

tended to non-flowable materials.
Under pressure of economic neces-

automation

me

lV

j

.

Today, automation has been

'

Mature of Automation

f

•

,

'

«

numerous

force deserve mention.

type

automation on unionism and union made early and extensive automa--1947

relations?

technical

technical level

-

"

in

use

ex-

the

iniTnltTA/l

av«a

be put

can

by

autoniation withJt*s~incr^sed

chem--saiaHed

industries

good

private business, and the effects of

ji

all

petroleum-refining,

and

be on tne cnaraciei anu
oe
the character and

composition

•

ical,

t omation

liKeiy
likely to

the

to
HerOeri

of

The^changmg charThe fast-

great emphasis tobusiness research, the underwriting of research by the
Defense Department, as well as

It started with materials that flow
and has made great contributions

over-all

effects

•

manufacturing operations — making, inspecting, assembling and
packaging—as well as handling.
Moreover, automation has spread
widely throughout the economy.

of

o n

has

towards

automation

or

1

trend

j

it

con¬

a

.notably•-•••• the

oemand for personnel
1?
ir
professional and technicai iieias.
ine

evolutionary

long

dif¬

or

merely

probably

wh^t will be

outcome of a 1947 and 1957
included in this
improved group is a growing number of mamanufacturing methods.
Origin- chinists whose further studv has
ally thought of as pertaining priqualified them for promotion to
marily
to
automatic
handling, jobs on

Is

t omation

a u

Tlbuted to

jnp

something
new

is

tionary concept.

'Til

■

there

expansion,

IS

day

~

thorough knowl-

a decided asset and

,

.

spread and systematic application
Penditures for capital investment
of its principles today.
Automa- have all
played a part in increastion is far from being a revolu-

•

ques-

tions:

If

*

,

acier oi tne labor force.
:

about automation, it is the wide-

speculations in this discussion of
automation,; I propose to discuss
only the fol"*
lowing spe-'

j
V-

shorter work week.

Effects

Planner m which automation

?

organize the growing white collar class; and expects
try to control technological progress and push for more
as a

•

n

already,

been unable to

fringe benefits, such

Skill

c.ompp^itlon, o f that labor
>"^ffhe of these effects have
;;
..been
ieit
*

technological displacement—which he finds fortunately
(faring prosperity end not recession; finjds unions so far have

labor to

and

;W11f.\foree'and
'

he^done

ease

occurs

continued

~

can

Force

*

leisure, education and
incojne to an ever-widening number of persons. The executive denies
automation

;

,

Qiven the spread of automation

,

v;-

more

a

machinery and mechanics

to

.

-JA our ecpnpmy and its

-

'

all these fields

edge of

d<jty activities,trols increases

,

'

in the labor

women

tration, time study, methods control, and general management. In

maintenance skills may not even
be required by automation, with
certain
significant exceptions.
These exceptions pertain to
hyaraulic and pneumatic
repairmen,
but' most of all to

'

; -

or quick conclusions jjot based on reasonable
observation, the labor expert notes these trends: (1)
expansion of 4
white collar class and a leveling off of wage earners; (2) influx

re-

iri

horizons

new

as quality control, material- control, personnel adminis-

these is

cpan&e>

.

i

generalizations

from farm to plant;

automation,

|h® F°-

•

Warning against

easy

breakthroughs,

flexible

Labor

to

more

manner

indicates

variables change in. favor of auto-

;

.

developments

traaitional

trend

such- fields

mation.

:

aggressive union's restrictions and, in fact, must do
stay competitively alive according to Mr. Northrup.

the

as

_5hice

.

.

an

and

such
„

Management that appiies the latest technological

in

rise

By HERBERT R. NORTHRUP*
General Electric

i

th

oper-

Force
,

m

-PfJ; unit achievable through
automation. As the costs of

-

.

S S-

wr

11

Company, Inc.

on

page

26

The Commercial and Financial Chronicle

12

matter of space.

The Place of Government

of

took

!n Our Economic

t

of Labor

.

Thursday, August 27, 1959

.

important in assuring the fulfillment of government's responsi¬
bilities: "How can we harness the productive efficiency of the free

a

start.

tion

in

In the

before.

World

War

I,

exceed

a

ate student of

economics, I

that

short

Let

Ewan

sharp business
depression—
As

depression—of 1921.
ex-farmer, I was keenly
of the literal collapse of

I

and

Clague

mean

an

aware

prices in a brief period of
a year.
I was grateful
that I was a graduate student on
a
fellowship and not numbered

farm
Jess

than

among

the unemployed, Professor
nationwide

attracted

Commons

attention at that time by sponsor¬

All

and prosperity can
dominate our economy?

that

forecasting is dangerous, and

future

with
ture

some

out

that I

hesitation

on

thin

such

ice.

to

try

Is

it

conceivable

of these needs will
that

think

I

de¬
one of

every

as the growth of the econ¬
and a few of them will even
expand their share of the nation's

ven¬

total

How¬

express

others.

of

omy,

product.

Or let

all of us as citizens must
necessarily project our thoughts
into the future.
Our legislative
must

econ¬

fast

as

ever,

bodies

the domestic

take

which

are

now

missile

look at

defense,
takes nearly 10% of

now

Gross

our

in

take

us

a

National

the

on

We

threshold of

You

age.

Product.

an

all

are

of

aware

insurance

unemployment

How different it has been after

World War II. This time
had

such

no

we

have

significant depression, no

volume

of

unemployment,
multiple supports and protections
♦Address

fore Babson

by Commissioner Clague ber
Institute, Babson Park, Mass.

are

tion. So it is from this background
that I
propose
to discuss with
you
own

If

my judgment, big
ernment is here to stay. How

it be otherwise?

we are

large

the ideas growing out of my
experience.

So, in

that

structure

could

diture

Take the simple

an

offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus..

any

expenditures,
shall

we

have

periodically

and

review

our

expen¬

is

there

But

programs.

to

tax

our

nothing new in this; we have done
it before and we can do it again.
I

of these securities. attention to

a

The

our

on

continue

the

want to
much

call

more

The Soviet Union

tem.

ing

300,000 Shares

Union

surpass us.

productivity
and the
Ameri¬
yet unmatched

as

are

the world.

Fundamental

Problem

your

serious

is engag¬

diplomatic

competition,
competition, and

other

Supercrete Ltd.

are,

fields.

they

The

(A Manitoba corporation)

These heights have

relatively free

a

contraction—all

or

cisions

these de¬

freely taken by the

v/ere

American people. In our economy
the consumer is king.
In the last

analysis, he determines the
direction

eral

of

gen¬

production.,

He

takes

nearly two-thirds of our
total annual product. Our national
is that

concern

consumer

purchas¬

maintenance

industry.

of

economic

I refer only to the fact

that government policies designed
to maximize our rate of economic

growth

receive urgent

are sure to

consideration

in

the future.

businessmen have

as

in

assuring

the

are

of

of

the

United States Government in

car¬

success

ing power shall be maintained.
We have just been congratulating

rying out this responsibility.

the

most fundamental economic

for sustaining the
the recent recession.

consumer

in

economy

lem

is

this:

How

can

the

Soviet

But

this

story.

Soviet Threat
is

the

not

the

of

end

The Soviet Union operates

under forced
In their system, investment
an

draft.

economy

first and the

consumer

is

a

left.

As

is

economy

result,

comes

takes what

the

Soviet

directing

now

capital investment

economic system, to which we are
all

into

much larger

a

productive efficiency of the
competitive economy to the
governmental
efficiency of our
political system—to effective na¬
tional policymaking?
This, in ad¬
dition to your private interests, is
your business.
The future of our
free

proportion of their national in¬
thatt?#e do. In recent years,

devoted, depends

inv

this

problem

on

and

our solvachieving

this goal.

come

have been

we

of

Gross National

our

plants

new

can

add

Importance of Government's

devoting about 8%

and

equipment.

another 3%

Civilian

Product to

and

Military

Activities

We

for research

This

means

that

we

can

and

longer take the position that gov¬

several

ernment

development. We might add
percent more for types of
construction designed for further
production. (I am omitting hous¬

ing, which I would classify as
consumer item.)
We

do

know what

not

propor¬

be twice as much as ours. We
know that their revenues are de¬
may

primarily

from the con¬
through retail prices; and
their productivity figures (how¬
ever
much
we
discount
them)
show a significantly higher rate
sumer

of advance than
vestment in

ours.
Capital in¬
plant, machines, tools,
is a major

materials and methods

factor

mous

the

in

growth.

It

amount

ficiency

in

rate

would
of

the

of

economic

take

an

offset the effect of their
of

enor¬

production inef¬

Soviet

problem for

a

necessary

is

evil, that

best

heart

of

Remember

the

that

Union to
high rate

single

The most important
organization in the world

is

United

the

Government

duction

is

ian and

military activities. This is
thought. I believe that
all the peoples of the free world
would agree to this proposition.

not

If

new

a

that

is

the case, shouldn't one
primary aims as business¬
be to strengthen that organ¬

of your
men

ization, to improve the efficiency
of its operations, and thus to as¬
sure

national

our

survival?

But how shall all this be done?

If

the

goal is accepted, we can
surely find the way to do it.
I
shall
not
attempt to
outline a
program because I don't know ex¬

actly what needs to be done.
make just

me

First,

I

a

have

deep concern
personnel.

a

are

The Social Security

will
surpass that of the United States

ing from the ground

about

Early in

government
my

Board, build¬
developed
able people.
within the next 20 years. I would The
unqualified success of; the
discount their timing, because we Social Security program has been
are at present so far ahead.
But due in part to the personnel who

predicting that their

we

dare

economy

discount

not

their

pro¬

an

excellent

have

staff

up,

of

administered

it.

In

enterprise.

Price $7% Per Share

All

of these shares having been sold, this announce¬
ment

NEW

appears as a

matter

of record only.
August 26, 1959

ISSUE

425,000 Shares

BIG APPLE SUPERMARKETS/INC.
Common Stock
(par value 10^

per

share)

pro¬

superior to free
Their confidence
in

(Offering Price $2 Per Share)

themselves and in their system is
based

upon

their firm

that their doctrine

Copies of the Prospectus may be obtained in any state from such of the several Underwriters,
including the undersigned, as may lawfully offer the securities in such state.
.

is

the

real

heard

for years

ciency

Dempsey-Tegeler & Co.

of

about

Copies of the Prospectus may be obtained from the
undersigned.
Underwriter

Bache & Co.

the ineffi¬

government

production?
thoroughly convinced

as

an

Aren't
that

gov¬

operation is almost in¬
variably less efficient than private

r

enterprise, with

August 19, 1959
.

such

as

"

certain

natural

a

SIMMONS & (

we

ernment

Incorporated




This

battleground.

agency of

AHyn & Company

conviction

sound.

Ah, but this is where we feel
supremely confident. Haven't we

f

Straus, Blosser & McDowell
A. C.

is

few exceptions

monopolies and
long-range programs? Nor

Let

few suggestions.

chev and his Soviet economists

us

this

and

far

the

governmental career,
I
had
experience in recruiting
personnel for government service.

meet

doctrine—

ownership
management of the means of

of

States, including its civil¬

is, can our
challenge? It
is on the basis of this high rate of
capital investment that Khrush¬
economy

Communist

government

which

least.

governs

capital accumulation.
The

is

government

today

a

tion of Soviet income is being de¬
voted to future production, but it

rived

that

eventual

is

no

and

these

Communism

system is its economic

(Canadian) Par Value

many

as

Our

prob¬

harness

we

the

The

all really secondary.

economic competition.
that

in

You

vital stake

a

in scien¬

Important

fundamental

threat

Common Stock

-

This

spending or saving, con¬
sumption or investment, expan¬

in military competition, in

us

tific

their

Soviet

problem, namely, the challenge to
our free enterprise economic
sys¬

NEW ISSUE

25c

ground.

likely to have continued

re-examine

gov¬

familiar

government

know

we

on

However,
This advertisement is neither

in

the

legislation the will of the Ameri¬ our vigorous efforts to surpass the
can
people.
Our executive de¬ Soviet Union in missile
weapons.
bill in the State of Wisconsin, a
partments must plan major long- But how far have we gone in
bill which later formed a pattern
run
policies.
You who will be missile defense?
Imagine the stag¬
for the unemployment insurance
serving in the world of business gering cost which will be incurred
system we now have.
In those
will
find
yourselves
spending if we must construct underground
days, there was no unemployment much of
your time in analyses, shelters for the
protection of our
insurance, no old-age security, no forecasts and
projections of mar¬ population. And we have
already
Employment Act, no government
kets. Some people prefer to take
become
concerned
about
earth
price supports, and in fact, a rela¬
no
thought of the future, leaving satellites as a factor in our mili¬
tively small Federal budget. On
it all to chance or to some master¬
tary future.
In the light of the
the international front, we were
minds.
Some consult oracles or
present world situation, is there
cutting back our armed forces,
soothsayers, who have occult any reasonable prospect of a sub¬
sinking our battleships, and look¬
methods for divining the future. stantial decline in
defense expen¬
ing' forward to a world of peace
But my thoughts are addressed to ditures?
and
prosperity. And the record
those who want to rely on man¬
shows
that
the
decade
of
the
Thus far I have been discussing
kind's gift of brainpower, upon
1920s produced such a world.
traditional government functions.
hard thought and careful reflec¬
Here we
ing

people

can

the

them will expand at least as fast
as
the population, some of them

just

sure

nations

rates,

will eventually catch up with and

of the American economy
standard of living of the

needs

new

rising to

an

any

cline?

what the
will bring forth.
So it is
be

can

But

there will

moves

functions

us

as

score

especially
so
on
subjects like
these, which yield to no mathe¬
matical or statistical analysis. No
one

direction.

that

in

be

doubt

no

illustration. Consider
the urgent and growing needs for
schools, roads, local public works,
social security, unemployment in¬
surance, veterans' benefits, and a

peace

once more

and

will

success

new

omy

military budgets can be decreased,
that taxes can
come
down, and

can,still recall
Vividly the

turned

On balance the trend points
more
to future growth than to
future decline of government.

that prices will

is

The

case.

both

present

Furthermore, history
side in this

top.

fall, that unemployment will be¬
come a
continuing problem, that

gradu¬

young

demand,

Federal

be

can

and

constant flood of

a

and

May we expect that some day our
nation's industrial capacity will

aftermath of
when I was

be

Is our

experience thus far merely a de¬
viation
from
long-run
trends?

was

ever

to find

which

states

achieved

about the future?

What

than

were

At the
efforts

necessary.

being made
to

many new

formerly

determined

offsetting these

The Future

our

conducting

localities, and
government functions which can
be returned to private industry.

than deflation.

If

sion

which

which

time,

Some

in

growth in this country.
I am not
now hinting at government con¬
trols or government operation of

thought

back

inefficiency

production.

the

functions

tremendous

a

There has been
disarmament, and our fears
directed more toward infla¬

influence

economy

individuals, and

budget.

Federal
no

and

comparison)

,

potent

more

families

(by

are

and

bigger

for

Soviet

put in 35 years; a 3% rate takes
25 years and a 4% rate 18
years.

been

functions

are

point is so simple and ob¬
that
it scarcely
requires
more
than brief mention: Gov¬
ernment
has
become
a
vastly
One

vious

worry
about this
is ample evidence

and

formerly

ment is also

same

to

imbalance

economy,
unguided by govern¬
controls.
Whether
it
has

conducted by private organ¬
Govern¬

not

There

of

been obtained in

izations and individuals.

public.

us

factor.

will

year

ment

functions

many
were

governmental efficiency of our political
system—to effective national policymaking?" Refers to Soviet's
economic threat.
Cites government's present personnel problems.
Stresses need for continued expansion of statistics and their dis¬
competitive economy to the

caused

A growth rate of 2% per
double a nation's out¬

gram.

economy

Government has absorbed

The world is small.
thought represents only

But this

most

of the Soviet

operation

thought brings us back to
government, that is, the Govern¬
ment of the United
States; be¬
cause
government
already
has
been assigned a responsibility for

more.

any

have the meager reports about the

—

ington. There are no empty spaces

government's influence on our economy, contrasting its present
role with that after World War I. Poses the following question as
in

semination to the

the

25,000 miles.
This is a
shrinkage of 100 to 1. And I must
remind you that our 13 Colonies
were
spread far beyond the dis¬
tance from New York to Wash¬

economist points out the great growth

Washington statistician and

—

time

around

travel

to

that

than

w0rld

Labor Statistics,

U. S. Department

.

more

Washington from New York

250 miles. Today it takes less

System

By EWAN CLAGUE*
Commissioner of

In the early years
Government, it
than a week to travel

Federal

our

to

it

.

(836)

Trading Department: WHitehr'

56 Beaver Street
WHitehall

4-7650

York

New Y
Telet'

.

i31-2

those

Volume

Number

190

5876

.

.

The commercial and Financial Chronicle

.

(837)
days, with

large fraction of the

a

The

labor force

unemployed, the gov¬
ernment got the best. There were
class valedictorians who came to
for

work

the

Social

the

war,

the best
But

how

changed!
The

W.E. Miner Professor of

able to command

talent in the

now,

By RAYMOND

the

in

government

emergency was

nation.

things

have

U> S.

Personnel

Today
agencies
the
a

in

we

the

oped

government

average

mote

dressed

college assemblies on the
advantages
and
satisfaction
of
there

three

or

employment.

seldom

are

in

hundred

a

interest.

express

do entice

And

some

q

lictc
lists.

rhf.
the

a

A

had

bureau

our

fpw
few
a

mnn+hc

though
had

now

been

months

ago

at

civil

Labor

Statistics

took

the

boy

little mountain top and

up on our

showed him his opportunities and

prospects

occupational outlook

—

studies, the price-wage spiral, in¬
flation

analysis, productivity and
economic
growth, and so forth.
But a large brokerage house in
New York bid him
right away

from

In addition to paying
good salary, they are sending him to the university (at their
expense) to get his master's deto
us.

him

a

until this last year

gree. Up

most

nt
government agencies couldn't

give

employee

an

a

■,

.

_

the less developed

the

areas

over

not

to

what

might

major
i ficance

i g n

for

employ¬

ment, growth
price lev-

able

and
e

1

United

little^

is

evidence

tight
tions

ply

that

for

basic
d ity
F.

R.

Mikesell

be

done

to

get

share

of

°i

price stability
The

facts

of

in

economic

our

trial life.

democracy,

a

and

indus¬

It is my firm belief that

and

in

free

a

economy, we must make provision
for the diffusion of information
and knowledge among the people,
If our economy is to be governed

by

the

decisions of millions of
then these millions must

people,
have

to

access

enable

them

sions.

I

the

to

facts that will

make

believe

good

deci-

the

great

that

expansion in
statistics
in
this
country during recent years has
been an important factor in helping maintain business stability,
This is
of

a

matter which should be
to you

concern

Our

bureau collects

most

of

its

a

our

gradual

but

by

means

no

in this trade.

spectacular growth
In

fact, there is good reason to
expect that our exports to these
countries
will
not
continue
to

trade,

export

high

the

at

grow

rates

existing

1958. The pattern of this

prior to

particularly on the U. S.
will
change
side,
will
as

these countries industrialize, and
this will affect markets important
to particular U. S. industries. For
example,

twJ"ty-year projections

published

recently

pulsorv

we

have

So

powers

we

no

com-

are

de-

cooperation of businessmen. When
vou
yuu

**0 out into
uui 11HU

the business world
uie uubiiiess, wuim,

you may become involved in government reporting.
Can we count
on

vour
y

help9 You will be serving
J

1

?

Av

serving

business and also the nation if you
'

it

for

perhaps

is

the

S.

U.

fruit-

more

by

the

Eco-

tura} products and textiles from
outside Latin America, but they
expect a substantial increase in
their imports of machinery and
automobiles. On the other hand,

U. S. exports of agricultural comto food and fiber deficit areas, a
recent study by a panel of experts

"it

that

patt

hv

R,i^^psfpd

GATT suggested
be a natural and

by

may

economic development that

rela-

with

hi«h

-nnnfripc

tively poor countries with nign
population densities like India and

to
to

import
import

foodstuffs
foodstuffs

.

we

must

tional

These

apply

them to our naand
practices.
to be completely re-

examined and revised.
n

may

the

Latin

of

case

America, to

Asia

and

stantial

the

Middie

differences

have

in

occurred

countries.

the

of

rate

since

.

.

.

.

-

,

.

•

suggestions Such'inat-

specific
are beyond the scope
of my
present duties and responsibilities
no

the

government

So

it is

not

appropriate for me to express
my ideas on this subject.
However,
I do urge your continued
consideration

of

this

1948

has

Southeast

in

been

for

some

most

commodities,

nef^ to °P^n aur dooJs to

less

than

2%

Asia, Pakistan's rate of

against 6-7%

as

and about 3.4%

ization

nf cnhctantiai

pvnnrt

be

can

attributed

^

opments

tbe

Mikesell

be-

1 Trends in International Trade, GATT,




Geneva, October, 1958,

page

so.

countries

combined

ports by 104% and the volume of
their

exports

which increase
accounted

by

only

more

for;

by

40%,

of

c

•

petroleum

tries

F0^*- of primary commodity exFortunately the terms of
trade

ume

significantly
of the

in
that

so

the

rose

export proceeds

substantially
+hp

over

between

the terms of trade between

This is not

an

0ver"the

.

.

,

while

vol-

i

or

^

than 1% per year

their

import volume

expanding at

rate of

a

over

Moreover, for

pgr year.
.

-

coun-

export

seventeen-year pe-

y

prewar

of

t~rrn<,

.

increased^ their

the

of the non-industrialized countries

per

A*16 bandful of countries
exPortlr}g mainly petroleum prod"cts ral,se(* their1 ,e£r>orJ 1
me*.
y nearly four-fold.2 But the vast

year*

ex-

rose

j

[ric^, Jais i.
volumeby 41%, or by 2.3%

half'was majority of non-industrial

than

early postwar period

period,

acvcutccn-year

"VCi

Those countries exporting mainly
JPinPra
+v.lngTr 5e ?•
aP
Congo, Chile, the Federation of
,,eSS
u aUnion of

.

.

+

+

,

a

was

4.5%

number

■

,

of non-industrial countries, export
volume has declined or has not
Continued

manufac-

2

primary

Ibid.,

page

nn
on

t«
IS

page

23.

offering of these bonds for sale, 0% a solicitation of an offer to buy,
The offering is made only by the Prospectus.

any

of such bondk

$65,000,000

Pacific Gas and Electric

Company

First and Refunding Mortgage Bonds, Series EE, 5%
Due June 1, 1991

of

sector

countries

some

Price 100% and accrued interest

UCVV4-

the rise in export earnings in the

Copies of the prospectus

may

be obtained from

any

of the several under¬
qualified to act as
legally be distributed.

writers only in stales in which such underwriters are

dealers in securities and in which the prospectus may

post_vvar period has resulted from

export prices have risen consider-

ably

than the prices of the
commodities they import.

Blyth & Co., Inc.
Eastman Dillon, Union Securities & Co.

Goldman, Sachs & Co.

Glore, Forgan & Co.

Harriman Ripley & Co.

more

Kidder, Peabody & Co.

Incorporated

Merrill Lynch, Pierce, Fenner & Smith

Lehman Brothers

Lazard Freres & Co.

Incorporated

couole

of

vears

uver tne past couple 01 years
there .has.been a noticeable deless developed countries. A

^

.

,

.

num-

.

,

occurred
.

in
.

.,

,P

.

it

f

t

larger flow
■°

.

,

of capital to the less developed re^
nrimorv
com

' oditv

DHces

and

Co.

Hemphill, Noyes & Co.

export

the second

imnnrtnnt far

White, Weld & Co.

Hornhlower & Weeks

Dean Witter &

Shearson, Hammill & Co.

Wood, Struthers & Co.

E. F. Hutton & Company

W. E. Hutton & Co.

A. G. Becker & Co.
Incorporated

Schwabacher & Co.

Robert W. Baird & Co.

Sutro & Co.

Walston & Co., Inc.

Incorporated

J. A. Hoglc

The Illinois Company

& Co.

McDonald & Company

Incorporated

William R. Staats & Co.

Bacon, Whipple & Co.

Merrill, Turben & Co., Inc.
Clement A. Evans &

Fulton Reid & Co., Inc.,

Crowell, Weedon & Co.

Company, Inc.

Elworthy & Co.

First California Company
Incorporated

Hill Richards & Co.

Kenower, MacArthur & Co.
McCormick & Co.

Loewi & Co.
Incorporated

_

_

Lester, Ryons & Co.,

Pacific Northwest Company

_

Boenning & Co.

have

Dewar, Robertson & Pancoast

Sutro Bros. & Co.

Saunders, Stiver & Co.

been

been

moving

moving

due

in

against
against

part
xuust
most

^

before
tended

1954
to

whereas

years,
their terms

improve.

of

trade

Fundamen-

the

import

with

a

requirements

steady

rate

of

I-

Perhaps

the

■

Dittmar &

Company, Inc.

Mitchum, Jones & Templeton

Stephenson, Leydecker & Co.

Newburger & Company

Yates, Heitner & Woods

Edward D. Jones & Co.

important

the rate of growth of the less de-

Rotan, Mosle & Co.,

Thayer, Baker & Co.

Talmage & Co.

Baumgartner, Downing & Co.

Wm. P. Harper & Son & Company
Underwood, Neuhaus& Co..
Incorporated

Woodard-Elwood & Company

most

Hooker & Fay

Carl McGlone & Co., Inc.

Eppler, Guerin & Turner, Inc.

J.H.Hilsman&Co.,Inc.

J. C. Wheat & Co.

C. C. Codings and Company, Inc.

Interstate Securities Corporation

Chiles-Schutz Co.

Grant Brownell & Co.

McKelvy & Company

Abbott, Proctor & Paine

C. T. Williams & Co., Inc.

E. W. Clark & Co.

-

Hincks Bros. & Co., Inc.

economic growth,

S[ng'c fact0r in determining both

Co«j

Spencer Trask & Co.

Rauscher, Pierce & Co., Inc.

has

j

Paine, Webber, Jackson & Curtis

Joseph Walker & Sons

This

-

Lee Higginson Corporation!

to the fact that the terms of trade

sion.

|

Smith, Barney & Co.

Stone & Webster Securities Corporation

exoort

and
in

F. S. Moseley &

Carl M. Loeb, Rhoades & Co.

,

,

been experiencing serious balance
of payments difficulties. This has

associated
Professor

[°ree 'hne J°'nt Ec<"""nic Committee .1

economic

industrialized

increased the volume of their im-

and

devel-

to

eXp0rt

For

ec0nomy.

hind

1_

vital

in

study on this subject are
revealing. Over the twenty-year
period 1937-1938 to 1957, the non-

Republic

^eral African countries-rose by
13 % or about % of 1% per year
over
the seventeen-year period.

for Thailand,

mar-

uc^s

of

GATT

Dominican

under India's first

their "wowtaa tally- the difficulties experienced
^ulaton^ wiU^requdre thfdeve ® ^ most underdeveloped countries
Lmpnt
he in the fact that their export
keSTor thllf manuflctSed p"od- ®ar"infh ha>* been lagging be-

'Statement

briefly at what has happened in
the past. The findings of a recent

five-year plan. To a considerable
degree,
differences
in
growth
rates

look

to

~

Rlca>

In

growth has been only a little over

2%

iiofc

?ac*' successful lndustnalin many countries that

rountrips

want

in-

example,
Argentina

,

agricultural

l

-?p1^
foodstuffs
pincrazil> ^ y ??.'

?

growth

Venezuela.

like
like

rn°IT,?nic— iTt^hoo3!! "e- dCfea'
the
race?
Communism

and

P-

Sub-

among

For

growth

against 8%

as

East.

iSs"^loned coT countries producinl primary p"od!
ofthe less developed coun- ucts for several

-

ters

within

^ ^
ers
of

programs

need

,

.,

non-industrial

fXre

somewhat lower rates in Southeast

Hong Kong should export cheap con^odity
prices
&
&
mann^ptiirp« in earnings beginning
labor intensive manufactures in
,f
f iq(r7^
°
order

the

the

experienced growth rates
ranging from around 4.5% a year

arp

tion, administration, executive action.
Having obtained the facts,

coun-

States

whole

palt .ot iy'V ™as aa important facgive
our
requests
sympathetic order
wheat from developed
consideration.
'"l—* *
^ countries *or
re<iucmg the rate of ecosuch
as
Australia, Canada, and "omic Progress, a number of counFinally, and most important of
al!
thprp
all, there are thp policy-making the United States, which are rich tries were running into difficulty
the nolirv making
'
„x
H
if maintaining
growth
momentum
functions of government-legisla- ™
cap^tjl\>J"?mla£<even before the 1957-1958 reces—

industrial

United

con- levels. However, between 1954 and

nomic Commission for Latin an increase jn tbe volume of exAmerica
indicate
the
virtual ports> whiie for others, export volelimination of imports of agricul- ume hag increasecj very little but

SzlcnnncrpH
pendent on the good will and sponsored

for

changes in the less de- real value
countries

divi(jual

data from employers on a strictly

voluntary basis;

the

the

.developed

Over the period' 1950-1957, the Primary product^ and
less developed countries as a tures moved against

^T£e£I?Senrates
GNP. We may expect

.

1/2% of

ac-

of U. S.
1958 ou

nearly 50%
trade; and in

foreign

point which grows out of my own
government experience. The BLS
is a statistical agency devoted to
the collection and analysis of the

areas

for

Information Indispensable

our

ful to examine the economic

in

underdeveloped

count

Next, I want to mention another

to

less

ing current projections of imports
from

imporlea p"f?a^y sequences of alternative policies 1Qr-R
may we 1 be toward these areas.
1958

in°prke's^ol

our

veloped
economy

orimarv

imoorted

even

fair

a

of

Hence, in dealing with ports

economic
Prof.

occur torcing
^"orices^'of8

prices

for

the problem of the significance of

imP°rts w \11
up

implications

economy.

sup¬

c o m m o

on the trade, investforeign assistance pol-

economic

condi-

of

economic

icies of the United States and our
Western European allies, and these

States.

There

its

for

measure

mehfahd

the

in

s

than

significance for the U. S. economy
as a whole. What that
growth pattern will be depends in consider-

little time off

talent?

manpower

tries

the

of

countries

political and strategic sig-

nificance

of

prewar

of e.xp°rfts of.

What then is the outlook for the

exports

developed areas of the
perhaps more important

is

its

with

compared

(1937-1938) the volume of exports
countries
exporting
mainly
non-tropical foodstuffs—including
0f

Mexico, Philippines, Syria and
Lebanon—rose by only 6%. The

Trends in Exports of

Non-Industrialized Countries

permit

in the less

for

.

government

do not

we

The rate and pattern of growth

.

world

are

likely

be
s

two

t0.Mt.:k! ar C0'l:ege1.-0?rse'-t0/say '"mmndhi" ,n"h as coffee, but
n°Wordt yoiTgive somethoiu^it as this should contribute to U. S
to

If

,

dec¬

next
or

servant

for many years. We in the Bureau

of

and wheat.

As

—

growth

of^cess to imports from the Igss Growth Rat^ m Underdeveloped
scc6ss t^imnnrt? frnmdfh!pVp«
Countries
developed areas, economic changes
ade

career

want to promote economic

public loan capital, we must pro¬
rising flow of imports, avoiding policies restricting world

a

a

His father,

private consultant,

a

a

we

excluded,

are

goods

Western Europe? Before consider-

ar\

chance

fine young graduate.

Declares that growth in the less devel¬

important for its political rather than its

significance. Holds if

of products to the extent of about
S. -15% and by an even
larger perpat-r centage if minerals and petroleum

future

cases,

sumers

imports since 1951, coincident with sub¬

more

impact
U.

the

on

capital
goods,
and
in Argentina,
Burma,
Cuba,
New
foodstuffs and con- Zealand
and
certain
African
as well. While capicountries—had declined
by 10%
tal imports are important for acky 1955. Over this same period,
celerating development, they can the volume of
exports of countries
provide only a temporary means
exporting mainly agricultural raw
of maintaining imports in the face
materials
including
Australia,
of constant or slowly growing exEgypt, Finland, India, Pakistan,
Ports'
Indonesia, Indochina, Malaya,

some

our

we

bright youngsters
intrs
into a rnxni bphHcp A-vnm
civil service exam, nrixrotxj*
private
industry often cleans out the top
nf
of

absence of curtailment of

imports, grants will be required to provide the needed capital and
Concludes if aid is to be provided in the form of
loans,
they are not a substitute for trade.

even

when

us

the

the

pends heavily upon the ability to
expand imports of fuel, raw ma-

commodities.

two

who

our

exports.

in

tenals,
in

markets for commodities, as cotton

But

than

more

F. MIKESELL*

abroad by private investment and

number of occasions I have ad¬

government

our

is for

areas

economic

lucky to attract even
college graduate. On

are

Cites decline in

stantial rise in

lies

shown that economic progress de-

imports, economic changes in the underdeveloped areas over the next
decade will exert no impact on
employment, growth and prices in the

Difficulty

and

areas

development

tern of their exports to the industrial
countries.
Experience
has

Economics, University of Oregon

Professor Mikesell maintains that

.VV:.'/ ii*-','--/.

Government's

their

economy

And the U.S. Economy

Security

Board in the lowest clerical grade.
Then again, in the 1940s during
the

veloped

Underdeveloped Areas

13

August 26, 1959.

14

The Commercial and Financial Chronicle

(838)

.

.

like

The Roie of

Bank and Insurance Stocks
BY ARTHUR

For Retirement
Assistant Director

Week

—

Insurance Stocks

Income

on

Boiler

Inspection

Insurance

&

Kendrick

Mr.

Company is,

insurance companies generally, a unique company, and in
unique field. First, it is the only stock unit that restricts its
writings entirely to boiler and machinery business; secondly, it is
unique in that its operations are primarily prevention.
among

maintains

and

security

social

of Research,

The company was incorporated in 1866 with a capital (includ¬
ing notes) of $500,000. There were several capital changes that
brought the figure to $3,000,000 in 1928, and in May of the present
year to $4,000,000, there now being 400,000 shares of $10 par value
each. Its sole affiliate is the Boiler Inspection.& Insurance Com¬
pany of Canada, carried at about $1,335,000.
This company normally reports a high expense ratio (expenses
related to written premiums) and is therefore not comparable
with the regular run of fire-casualty carriers. The reason for this
high expense ratio is that insurance under its policies usually

voluntary

of

inspection1

and engineering service.

keeping down claims, and, of

for the
run

five years

ended

with

losses. As
1958, the loss and

Once

follows:

as

Loss Ratio

1954
1955

%

32.5%

54.4%

88.9%
84.1

58

61.5

91.9

52

24.5

59.8

84.3

54.5

78.8

t

between

security

thus

over

shows

an

which puts it in

ratio

w

e

e

(a)

n

of

ment

for

through 1958, 85.4%. The company
ten-year profit margin of some 14.6%,

years

average
a

class with the

underwriting operations
more

profitable carriers

more

concerned.

are

The

far

so

inspectors, who devote their time to the ex¬
equipment such as boilers, engines, turbines,
compressors, generators, etc. Their efforts, therefore, run to pre¬
so

Social

Common

U. S. Gov't Bonds.

14.0

Other

Other Bonds__

35.8

All

Preferred Stocks—

1.2

Stocks

Market

Records

Liq.

Adj. Und.

Invest.
Income

Taxes

Per

choose
-

build

may

Div.

High

.

$2.38

$0.31

$2.90

$1.20

3.40

29%

2.56

0.18

5.78

1.20

29%

0.32

5.70

1.20

6.71

26%

2.79

22%

4.23

5.27

1.35

8.99

34%

3.03

24%

2.96

10.28

3.39

9.13

62.70

195Y

«

3.27

9.06

135

35%

3.91

9.76

1.50

62%

3.82

5.60

7.35

1.57

5.06

78

4.36

3.35

6.07

127.67

1.87

8.71

4.91

73%

56%

3.84

9.78

116 87

1.87

4.76

4.11

60%

46

1.26

7.61

1.87

85 Va

53!/2

1954

11C.27

1955

123.30

1956

122.21

1957

1958

'

•Adjusted for 33 %%

stock

Steam Boiler has

,

except

the

in

disrupt

the

dividend in March,

had,

1943-1947

company's

a

29%
,

;

inspection

dozen years we find that
only in

operations.

II

If

did

we

much

Jherf has b5engood growth
19o8
it

of the shareholder's equity

increased about 250%.

E ,n|* earnings were up by almost

160%.

In the

to

AND

BANK

to
a

And

In

the

Importance

any list of growth

M

COMPARISON

London Branches

of

12 N. Y. CITY

BANK STOCKS

Tax

Bankers

to

Depts.:

54 Parliament
13 St. James's Sq.

the Government in

1POAMDA, ZANZIBAR *

:

St.

A

ADEN, om^

SOMAULAND m nnnfc

Branches In:
•WA, RAKBTAN, CEYLON, BURMA,
KBMB^
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN. SOMALILAND
PROTECTORATE.
NORTHERN AND SOUTHERN

RHODESA.




Bulletin Available

Laird, Bissell

8 Meeds

Members New York Stock
Exchange
Members American Stock

Exchange

120

BROADWAY,

NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell Teletype NY
1-1248-49
Specialists

in

Bank

Stocks

Far

dangerous

a

States.

ten¬

security in

Yet

the

the

repeated

record, and the demands

and

insistent.

then

If

at

aud¬

are

this

some

trend

point,

later if not sooner, we will surely
reach a stage of over-liberaliza¬

What

Issue

ward

the

As

tendency

equipped to do.
have framed

not

modest,

I

as

have al-r

benefit

liberalizations

immediate impact

an

secu¬

first, concise answer,
stems mainly from the

thaat

have

social

on

the

has

Act

sure

distinguished life insurance
leader, who has contributed much
to the development of American
social security. "When an increase
in benefits is adopted," he said:

be considered seri¬

a

".

.

.

it usually applies to those

already

on

the rolls.

However, the
increase, as
working,

full cost effects of the

they

affect

slow

are

lows

in

those

now

maturing.

because

only

That

fol¬

relatively
small number retire each year and
receive

been

to

put quite well by M. A. Lin¬

was

ton,

the

a

increased

benefits.

Thus, the full effects of the larger
benefits are postponed for many
years, and the increase in the cur¬
rent outgo is relatively light."

in 1960.
What happens in
I960, in fact, may prove to be of ;: Thus, - continued
Mr.
Linton,
critical importance in shaping the political
irresponsibility
is
in¬
future of social security in the vited:
"Vote attractive benefits
,

United

States.
As yet, the gov¬
ernment system provides benefits
-reasonably related to the idea of a
basic floor of protection. *~As yet,
the government system does not
provide hospital or medical bene¬

fits.

If

1960

of

round

level,it
*An
the

should

increases
-

might

in

see

the

another

now;

let the future generation of

workers

Every
"should

pay

most

of

curity system
are

bill."

citizen,
he
concluded,
keepi clearly in mind this

dangerous aspect of
fits

the

as

our

social

se¬

increased bene¬

in

proposed

Congress."

benefit

the

Desirability

first

Kendrick

before

mark

of

Modest

Social

Security
address

12th

by

Annual

Conference

on

Mr.

University of Michigan
Aging.

,

Before going
flow

of

on

with the main
I would

these" remarks,

useful job, quite effectively.
I haveHbeen talking

a

danger

about is the perilous tendency to¬
ward

over-expansion of

the sys¬

tem.
,
.

Similarly,

I

,

certainly

am

not

attacking the

normal human de¬
sire for security.
The life insur¬

business, in fact, is devoted

ance

to serving that desire.

talking

about

is

What I

excessive

am

pre¬

occupation

with
security. And
preoccupation is much more
likely to manifest itself in politi¬
such

demands

for

and

more

more

governmental social security than
in miserly behavior on the
part
of individuals.

Voluntary Measures and
Compulsory Social Security
Distinguished
That

brings me to the second
point on which I would like to be

absolutely

clear:

There

vital

are

differences—three, at least, which
I

will

mention—between

volun¬

tary provisions for retirement in¬
come

the

on

ernmental

curity

hand, and

one

gov¬

of social

programs

se¬

the other.

on

First, as the
"voluntary" implies, the in¬
dividual who is building his own
retirement income security has a
word

freedom of choice

to

do

in. h

so

that best meets his needs and

way

desires

the

—

resulting

"tailor-

made suit," so

to speak, contrast¬

ing

with

markedly

made

suit"

that

the

"readysecurity

social

furnishes everyone through

a law
applying uniformly to all.
Second, and more important, it
is characteristic of voluntary sav¬
ings, insurance, and home-owner¬
ship that each family builds its
own
retirement security.
Social
security, by contrast, necessarily

operates

go" is
that

on

an

so-called

a

basis.

you-go

to¬

a

trend

fact

this

causes

over-expanded

rity?

important,

an

ously

,

1

:

it is also

believe

tion is

Trustee Depts.: 13 St. James's
Sq.; G*ri
Nairobi; Ins. Dept.: 54 Parliament
«*.; Travel Dept.: 13 St. James's
Sq.; In*oam

&

ANALYSIS

S4 PARLIAMENT
STREET, S.W.I
13 St. JAMES'S
SQUARE, S.W.I

is

social

continues,

best

substantially
liberalized five times. in the last
nine years, and further liberaliza¬

•

BISHOPSGATE, LONDON, IfJ

in

far

ible

curity should go toward maintain¬
ing the income levels of the re¬
tired aged is a live, current issue.

rity

Bank of ImBm

Government

Too

of you may ques¬
thought I am implying:

matter of

case.

same

The present divi-

GRINDLAY8

Head Office:

of

Go

benefit increases of the past are a

long-range issue.
As you know, the Social Secu¬

Grindlays Bank Ltd.

compulsory

tion.

find

its particular

an intermediate
area
represented
by employer and union plans; but
as
another panelist is discussing
that topic, I will not go into it.

LIMITED

Atmalgamating National

to

some

there

United

the

family
in

ing
The

the

on

for further liberalization

I

NATIONAL

where

on

compulsory government planning public's consciousness, while the
and voluntary family planning. L
impact of the required tax in¬
recognize, of course, that there is creases is" deferred.
Recently this

.«"■
adjunct to

security

the

too

That the

with

As this audience is well aware,
the question of how far social se¬

holdiSgLSt0Ck makes an excellen*

make

we

dency for Government social se¬
curity programs to go too far.
True, we may not yet have gone

se¬

;

SSfiStigtear -

tion

Assuming it is agreed there is
place for voluntary effort, I
would like to focus my remarks
on the question
of where the di¬
viding line should come between

1948, 1947 and 1951 were statu¬
tory underwriting deficits
recorded, and they of minor size: 86
cents; 21 cents and 21 cents.
the decade ended with

standpoint,

Tendency

That

may

some

back

go

which

facilities

families

utilize
in
seeking
portion of their own

(1)

say:

answer

60%

1959.

War

relatively

long-range

a

Perhaps

voluntary

35%

long favorable underwriting record

period when World

and

would

ready

be close at

To

mechanisms
best be employed. Suffice it

fers

23 %

2.75

70.69

84 63

1951
1952

I

useful

different sort

a

the American social security sys¬
tem just as it now exists, it is still

may

dividual

24%

$1.33

58.10

organized

do

While

"Forand"

answer dif¬
family's circum¬
stances; and (2) That there are
many well-qualified salesmen and
agents available to help the in¬

Low

$50.90

.__

1950

to

Price Range

Net

or

and

to

a

decisions

choice

The

curity on a voluntary basis.
It hardly seems worthwhile to
get into details as to how the

Share *

Fed.

Profit

—

the

desire

of

most

a

can

is

pursuit of happiness.
Those ex¬
cessively preoccupied with find¬
ing happiness seldom do.
Simi¬
larly, when the prime motivating
force
of
a
society becomes the
quest for security, serious trou¬
bles may loom ahead.

insurance

various

Statistical

Value
1949

Life

mechanisms

Dividends have been maintained in an
unbroken record since
1873, over 85 years, one of the longer records
among insurance
companies in this country.
Ten-Year

maintaining the income

individuals
.

%

.

policies, savings
accounts, home ownership and the
like* are Yiot fcomgfarable with
social
security
in
this regard.
They are not plans.
They are

10.7

Adjustment—. —0.3

human

protection, can
function.;
of job
than the job voluntary enterprise

on the other, can be of
great na¬
tional importance. The quest for
security is somewhat
like
the

Benjamin B. Kendrick

a

of income after retirement.
*

0.7

___

as

of

aged, is clearly in the first
a compulsory plan,
conceived and operated by gov¬
ernment,
which
assures
those
within its scope of a certain level

32.5%

._

Investments

Other Assets.--—

floor

perform

one hand,
and voluntary individual security

category. It is

In the investment end of the business, about 60% of the
portfolio is in bonds; and a
sizable"proportion is concentrated in bank
and insurance stocks. A breakdown of assets into
principal cate¬
gories, as of the end of 1958, follows:
5.4%

basic

a

It

cal

social

of the

involving

....

Cash—i_—

of

it exists today,

A modest social se¬
curity system, aimed at providing

the enact¬

see

draw the line between

m-

secu-

rity,

Hartford Steam Boiler is licensed to do business in all
States,
and it writes about one-half of all -boiler and
machinery insurance
in Canada.

.

the

means

lines of general business,
new
machinery and

many

technological developments
changing methods.

the

selves.

The trend is toward higher premium volume

and

system
as

normal

suggested.
I
think
the
American system is at present do¬

so-called

the

From

do

aged

and
for

amination of power

because of plant expansion in

the plan¬

ning the aging

as

than 600 field

vention of accidents.

States,
the

on

for security.

social

national

hand.

(b)

maintains

company

critical

by others, and

the most recent five years averaged

over

great

proposals — to provide, hospital
and
surgical benefits for social
security beneficiaries — it might
mark the first definite step to¬
ward a national system of compul¬
sory health insurance.
So some

the aging and
aged that is

62

the ten

of

And if 1960 should

done for them
The combined

65.1%; and

compulsory

is

definite step away from the floorof-protection idea and toward the
conversion of social security into
a
sort
of uniform,
compulsory,
high-level, national pension plan.

be-

planning

52

24.3

_____

for; the

dis¬

a

tinction

53%

55.7

30.4

1958

draw

of Liq. 1

28.4

_____

1956
1957

Combined

Expense Ratio

income

assured, the problems of
health, housing, home life, - and
so
on,
diminish significantly in
difficulty.'
'To begin
with, let me

ratios

expense

suitable

is

aged

consequence,

a

choice

s

'

This has the effect

course,

the

individual

cerning the aged will be accelerated.

,

an

am

security

United

importance—with a tendency of Government programs to go too
far; Declares, as not generally realized, oveneftpanSiori is likely to
discredit social security in the people's eyes; Avers tKdt, dotivdrsely,
increasing public satisfaction would be had in a projier balance in
plans for retirement iricomo maintenance, with cash social security
benefits un a floor-of-protection level, with supplemeritaiioiii thtough
voluntary mechanisms. Concludes that with the retirement income
problem effectively solved, progress on the other problems con¬

a

carries

I

two points that are of

First, I would like to emphasize
that nothing I have said or will
say is meant as an attack on the

Life Insurance Company of America

HARTFORD STEAM BOILER INSPECTION & INSURANCE CO.
Steam

couple of minutes
being absolute¬

a

sure

or

Hartford

take

ly clear

By BENJAMIN B. KENDRICK*

This

to

to make

major importance.

WALLACE

B.

Voluntary Planning

Thursday, August 27, 1959

.

And

pay-as-

"pay-as-you-

expression which
Peter's

young

means

taxes

are

promptly used to pay old Paul's
benefits (as indicated in the quo¬
tation

from

Mr.

young Peter

Linton).

When

old, his bene¬
any signifi¬
cant way from the relatively small
contingency reserve in the Trust
Funds; his benefits will have to
fits

cannot

come

grows

in

come

from taxes paid by Paul Ju¬
child
now
who
will be

nior—a

working then.

.

j

.

Again, I am not attacking social
security-r-just explaining how the
system
necessarily
works.
My
point is that, generally speaking,
a
man
provides his own retire¬
ment

incomewhen

voluntarily,
rity forces

whereas

one man

he

does

social

it

secu¬

to provide an¬

other man's security.
Over-ex¬
pansion and over-development are
much more likely if someone else
must pay the costs.
The

third, and most important,

distinction between voluntary and

compulsory

provisions

concerns

the

fact that the voluntary

ods

normally involve

an

meth¬

important

element of advance savings, which
draw interest, while the compul¬

government

sory

methods

mally da not involve much if
savings on interest.
In this

gard,

let

me

read

you

some

nor¬

any
re¬

ex¬

cerpts from the report to the Brit¬
ish Parliament made a few years
ago

by the distinguished

Phillips

Commission:
"Under private pension schemes
no ultimate burden

there need be

Volume

190

Number

5876

.

.

.

The Commercial and Financial Chronicle

(839)
the

on

since

rest

of

the

community

the contributions made

der these schemes
into a fund

which,

yields

of

investment,

on

the cost

in benefits.

time

by

at

inducing
else to

someone

sion

allowing

or

contract the obli¬

gation to maintain him.

.

.

the

benefits

that

ultimately receive.

.

.

of

ful

earnings.
transfers impose a burden
.

payers

and

benefit

of

sions.

.

To

for

over

In

on.

may

be

soon

gesting

a brief way of
sug¬
aim which remains con¬

an

the

of

despite

external

in¬

wide

changes

conditions

and

in

circum¬
f

dividuals involved.

But let me return to that
Second, over"Bige¬
over-development low, carpet" of protection. Is not

and

of

social security are less
likely.
Third, by reason of the interest
earned, the economic burden on

the

community

is

reduced

Professor
Mr.

would
to

"Bigelow
of

"a

basic

floor

trying to

expression,
protection", in

of

should

that

how

far

My

go.

social

thought

above

this

means

basic

as

Opposed

this
concept
of
security is a school
of thought which favors what may

"big

colleague,

social

security."

is

Chairman's

our

Professor

of

the

of the

Wilbur

School

of

\

J.

Social

University of Michi¬

Professor

Cohen

has

been

associated with social

security since
the
enactment
of
the
original
Social Security Act; he is widely
recognized as an authority; and
views

Let

me

read

"The

highly

are

you

talk

a

he

respected.
Irast

of

insurance.
"From

plexity

.

a

benefit

of

is perhaps the most

...

difficult

fall:

./making

of

determination/

adequacy

excerpts

some

made

problem

specific

all

issues

in

social

to

pleasure,

could
way

less

this

com¬

been

by use of the facile
that the benefits in the

OASDI

should

program

'basic

floor

of

provide

protection.'

Congressional

Committees,
agencies, business

ernment

insurance

with

Some

cept.
floor

as

have

groups

fascinated

a

this

people

bare

gov¬

and

become

elusive

think

con¬

the

of

rough-hewn cabin

floor, others as a solid oak floor
nicely polished and waxed. I like
to

think

kind

it

of

as

floor

a

with

a

of

only

a

wants

his "solid

a

oak

it

not

be

culti¬

that would involve

government

in

In

conclusion, let me note the
unfortunate
tendency for those
who urge continual, rapid
expan¬
of

oppose

broad

social
its

con¬

Those

who

the recurrent proposals for
expansion are apt to be

considered

unfriendly

to

the

whole idea of social
security.

over-expansion

run,

than

more

anything else is likely to discredit
social security in the eyes of the
American people. The higher and
ever-higher payroll
taxes
that
would be necessary in the course
of

time would

surely lead to dis¬

illusionment.

increasing

in

public

the

coming years
balance
is maintained in plans for retire¬
be

ment
see

had

if

income

it,

this

security

a

maintenance.
on

level,

a

retirement income

effectively

solved,

progress can

the

other

nities

pertinent thereto.

are

all

inclusive

but

to

and

income

These articles

serve

more

as

be

In

field of measurement
analysis it is necessary that
any

and

the

investigator"

uses

proper

equipment. A ruler that measures
12V2
inches
will
distort "♦ your
linear

measurement,' an improp¬
ground lens will produce a

erly

are

substantiated,

problem is

valuations

"Undoubtedly, the great attrac¬
that

it

and

can

to

different

in

what

what

it

usefulness has
different

mean

people.

Its

conceals,

things

Strauss

value

rather

is

than

it reveals."

Much

I

as

basic

me..

floor

of

The

protection"

is

not

intended to be evasive, I feel sure,
and I do not think it is evasive.
.

In

Professor

Cohen's

terms,
it
means something like "a solid oak
floor," but without the polish and
wax, which should be applied by
the residents.
means

more

The term

than

of subsistence.

Street.

the

Vice-President of J.

&

Co.,

155

S.

for

Montgomery
time

some

and

unsecured)
should, bo
properly
disclosed
by a qualified
shareholder or analyst for addi¬

and

and

requests

any

compiled
by
independent ; and
capable auditors of high repute?
Eliminate
consideration
of
any

tional facts should not be refused
unless it would obviously mean *.

company's

formation

securities

start with

can

you

figures

unless

you

which

upon

rely.

can

In the

use

detrimental disclosure of vital in¬
for
the
corporationL
This could only be a rare

happen¬
Any company that refuses

stance.

of audited statements

vital

information,

faulty image.

a

To

definitely

in

ratios

disclosed

the

by

sheet and

income

company.

There

balance

account

of

times

are

any

when

management conceals as well as
distorts.
Especially among
the

smaller,

promotional

more

tures is it necessary to

careful

figures

that

larger

well

the

to

as

be

(2)

facts

and

publicly issued.
companies, that are
less

likely to

cruder

methods

are

was

in

no

a

made

The item of
the
and

are

established

should

physical
by the account¬
ants and other procedures propterly used to verify quantities.
check

ven¬

unusu¬

Inventories

be accepted unless

case

bly
ing

inventory has been
graveyard of more companies
more investments than
possi¬
any

other factor used obtain¬

in

miscalculations

of

the

If you stop to
your

salesman
are

bare minimum

Newell

be

Goodbody

fairly




pre¬

Goodbody Staff

has

&

joined

the

staff

your

investing^ it should not fake
coaxing for you to sit down

and write the management of
any

in which you are
templating an investment,

company
ask

them

for the

con¬

and

to the

answers

questions that your preliminary
study of their annual report has

During the past 25 years great
strides have been made
by re¬

of company assets.
In
this
connection,
there
are
six
disclosed to you. Honest manage¬
principal methods of determining
ment will provide the answers*
inventory valuations in common
If they cannot be given to
use
in this country today.
you*
Some
at least you will be given a plau¬
are
more
suited to certain lines
sible explanation.
The manage¬
of s business
than
to
others.
A

sponsible firms of certified public
accountants in accurately depict¬
ing and recording the financial

change from one method of in¬
ventory determination to another
should
be clearly designated in

use

of

some

the

of distortion

that

lent in this present

accounting.

still

are

preva¬

day of applied

v

>

soundness

records

and

clients.

But

activities
record

ficult

and
to

situation
of

it

is

the

mathematics

and

inexact

an

sufficiently dif¬

accurately
in

their

keeping

accounting is in itself
science

of

appraise

exact

a

valuations

without

of

some

imposed

the

upon

he is forced

to

use

analyst when
incomplete or

possibly inaccurate records.
Certified

Use

Statements

All financial statements that

are

based upon unaudited or company

reports are
der

no

dited

to question.

open

rely

figures

terminations.

solely

upon

making

in

Where

the

unau¬

his

de¬

unaudited

report

case

be

if

Unless

advanced

procedure,
viewed

be

such

has

the

been

during the period under

view.

sound

a

for

such

re-rcan

change in
change should
by the

any

a

with

reason

caution

analyst.
The methods of inventory valu¬
ation are in themselves an impos¬

ing study for the serious student.
They are briefly, First In-First
Out; Base Stock; Average Cost;
Retail
Method;
Standard
Cost;
and Last In-First Out.

company

figures

are

used

they

will

that

has

either

answer

or

something to hide

send

you

notes

receivable,

checked
ence

to

as

should

to their

be

quality.

should

This is under
or

as

an

no

offer

Of A. M. Kidder Co.
Vincent

P.

Gonnoud

has

likewise

Assistant Treasurer of
A. M. Kidder & Co., Inc., 1 Wad
Street, New York City, member*

Exchange.

Opens Inv. Office

come

business from offices at 251
Avenue.

as an offering of these securities for sale,
buy, or as a solicitation of an offer to buy, any of such securities.
The offer is made only by means of the Prospectus.

to

August 26, 1959

Corporation

Common Stock
(Par Value $.10 per Share)

per

Copies of the Prospectus

may

B.
of

Co., 140 Federal St.

been

appointed

circumstances to be construed

#2.75

In

:

HUNTINGTON, N. Y.—Betty L*
Loans Hecker is
conducting a securitiie*

under close scrutiny. An excessive

Silver Creek Precision

evasive

Gonnoud Officer

as

physical exist¬

and also their

officers

also

an

ignore your letter.

either case, you can save yourself
further work and most
likely a
future loss on a most unattractive
investment.

of the New York Stock

(3) Other current assets, such

Un¬

should

circumstances

the

ment

Share

be obtained from the undersigned.

Maltz, Greenwald & Co.

(Special to The Financial Chronicle)

Arthur

of

you
are
a
dealer or
of securities) that yon

much

Co., Broadmoor Hotel.

—

that

(if

(Spet ial to The Financial Chronicle)

Mass.

com¬

realize that it lap

and

money

clients

the

COLORADO SPRINGS, Colo.—
Mrs. Lena Miller is now with John

BOSTON,

that

our

Price

Joins

or

And,, for the pur¬ the accountants report should in-' plicates the
study of facts, either
discussion, an in¬ elude the assurance that:
through omissions
or
evasions^
correct
set
of
figures will be
(1)
Accounts
receivable
and should be treated with suspicion.
worse
than useless in a study of
payable
have been
verified by
the
internal
How Long Does It Take?
relationships
and proper tests.
of

poses

Joins John H. Lewis Co.

H. Lewis &

be checkedL

or

clearly

Mr. Howard has been with

firm

Professor

expression "a

at

1,600,000 Shares

FRANCISCO,
Calif.—
J.
Howard, Jr. has been
a

that

closely held subsidi¬
aries, notes receivable (either se¬

Trading Department.

esteem

Cohen, this passage disturbs and
distresses

Leslie

to

as

most con¬

bo

stated value should

on

J. S. Strauss & Co.
elected

such

should

Howard V. P. of

been

is

Securities of

also.

tiveness

ascer¬

Investments taken

eliminated.

opportu¬

concerning the aged.

SAN

term

the possibil¬

rapid

more

then be expected

problems and

this field

servation evaluation
a

It

verified,

In

proper

designated.
What
figures that have not

good

Are Accurate

-

longer

anything less than the

so

been

-/

and

appraiser should be

cured

should

assets

ity for honest disagreement

ac¬

"Do

the

tained.

not

are

a

fixed

social

supple¬
through

available

sheet

carefully. Item*
clearly' explained

floor-of-

with

item

read
not

are

I

As

cash'

vqluntary mechanisms. And when
the

of

are being
important

most

a

to

proper

means

benefits

protection
mentation

be

Be Certain Your Tools

analyst

Conversely,

covering
is

furnish ' the salesman
of the basic tools which can be
of the relative attractiveness

the obvious impediments that are

Actually, the opposite is prob¬
ably nearer the truth. In the long

to

Bigelow carpet on it not
keep my feet warm but
giving me some aesthetic pleasure

security to be

"friends."

this

balance

,

interference

Conclusion

•

.

can

time, the
issue has

minimized

a

pleasure"

B

As for Mr. A's aesthetic

satisfaction

.

.

time

of

phrase

on

vated in

sidered

from

Mr.

which

for

younger.

sion

States

his

If

C

a

series of articles that

a

purpose

Yourself Kit" that might become a foundation for further
study if desired.—EDITOR.

The

United

gan.

Mr.

"aesthetic

A?

pay

Perhaps the outstanding advocate
of
"big social security" in the

Work

provide

to

called

Cohen

a

the lives of other
people?

modest social
be

that

of

CHRONICLE

primary

of

^

of various securities and the balance sheet
intended to

buy it. Mr. C could have bought
a
Bigelow carpet, had he been
willing to pay for it, when he was

individuals

groups and

for

the

count items that

ally

desire.

may

to

be

the

investments, where appraisals, aro
given, the standing and reputation

used functionally in the study

protection, and is willing
it, he can go out and

floor,

to furnish such additional
pro¬

tection

give

Mr.

to

should be relied

voluntary
on

carpet

floor" of

the

indicate

security
was

used

saying

order

Bigelow carpet

Protection

Earlier, I

,

Carpet"

in

B

Bigelow

or

eliminated.
A

Cohen

compulsory tax should be levied
on

in

The

and the investor with certain
,

to

rendered

stances.

desires

used

protection" is

com¬

stant

and

subject.

a

contrast, "a basic floor of

the

needs

"200

by changing prices; they
geographic
differences, previous levels of liv¬
ing, family composition, and so

pulsory ; social
security:
First,
voluntary provisions better meet

expansion

This is the second

published

meaning¬

the

than

do not take account of

:i
the three important
of voluntary
provi¬

retirement

expres¬

protection"

obsolete

tax¬

on

(ARTICLE II)

existing pro¬
Social Security Act

expression

aim; they

The

.

of

of

story.
to

should

Some "A. B, CV' of Investment
Analysis

'

another pension group.: Such dol¬
lar amounts do not
identify any

up

advantages
sions

floor

amount

own

notes

should be clarified before conclu—
sions are attempted.
In the area

speak of, or the "$30 every Thurs¬
day," /which v/as the ;slogan of

bur¬

contributors for the
those who draw pen¬

."

.

sum

.

the

use

month" the Townsendites

past

current

DUTTON

that

that

sure

of protection" is a more

will

The

.

BY JOHN

tection.

is met, not
savings made collec¬
tively by the pensioners, but out
of

basic

am

adequate to provide such proActually, "a basic floor

are

den of state pensions
out

"a

visions of the

.

they

-

would agree that the

"Under the National Insurance
Scheme there is no similar
equiv¬
alence
between
the
payments
made by individual contributors
and

angle,

I
most people who

future

"some

All

Approaching the question from
another

growing

tells its

assets, but without their
needing to resort to family aid,7
charity, or public assistance).

effect, therefore, a private
who provides, directly or
indirectly, funds that are invested
in his behalf, makes
provisions for
maintenance

or

Securities Salesman's Corner

and

come

person

his

and

living for most beneficiaries (taking into account their other in¬

In

...

say it means a level
providing a minimum
decency standard of

benefits

health

additional stream of in¬

an

to meet

come

cise, I would

un¬

usually paid

are

IS

Park

16

\

(840)

is

it

FROM WASHINGTON

The Commercial and Financial Chronicle

too

pronounced, it is bound
bad taste in his mouth.

to leave a

Several

weeks ago we

received

interest with the loans

5%

tized over

the

end

period of 20

a

12

of

amor¬

At

years.

the

years

service

.

.

Thursday, August 27, 1959

.

to a rather substantial
surplus as the volume of
gross capital outflow begins

economy

import
our

charges on the capital already re¬ to level off.
ceived will equal the annual new
welcome.
In
Implications for U. S. Foreign
fact, we have welcomed some hot¬ capital inflow, and after 20 years,
Trade Policy
debt service will amount to about
ly controversial characters in our
BY CARLISLE BARGERON
Now I would like to state brief¬
$150 million per year as against
time
gross capital inflow of $100 mil¬ ly what I believe are the impli¬
Vice-President Nixon's fortunes
lion per year.
Obviously at the cations of this analysis for the
are to
go up or down depending
end of 12 years export earnings U. S. economy. Assuming it is the
on
the outcome of exchange of
must have risen by at least $100
policy of the United States to pro¬
visits.
Whether
Khrushchev
should State.
The nominal President of
million unless of course, import mote economic
growth in the less
have
been
invited
to
visit
this the country is the Chief of State,
As a matter of fact, it has de¬
requirements have fallen by that developed areas with the aid of
country is debatable. But the fact it is contended.
This has piqued veloped that he had nothing in amount.
However,
it
is
more private
foreign investment and
remains that he has been invited Eisenhower as
small
and
petty the world to do with it. Several likely that import requirements
public loan capital, the United
and we seem
and
he may
overrule the State weeks before he went to Russia, will have risen substantially in States and Western
Europe must
to be working
the
corre¬
Department and insist that the Eisenhower initiated
the meantime so that foreign ex¬ adjust
their foreign commercial
ourselves into
visitor be treated as the Head of spondence which led
up to
the change earnings must have in¬
policies so as to permit a steadily
an awful stew
State.
exchange himself.
creased
sufficiently
to
provide rising flow of imports from the
about it.
Khrushchev
has
undoubtedly
Anyway, it will be a tense two for both the debt service and the less developed countries and avoid
Congress is
been
warned
of the
trouble he weeks that Khrushchev is in this increased import requirements.
policies which restrict world mar¬
working like
may encounter over here and, if country.
But why can't capital imports kets for commodities like cotton
mad not to be
the revolutionary Castro here and

...Ahead of the News

in

he

here

continue

be

have

body.

to

i g h t,

r

Carlisle

Chairman of
the

Bargeron

Senate

Senators who

the few

of

one

Committee,

Relations

Foreign

is

has

proposed that he address a joint
session
and,
lacking
that,
the
intends

Senator
pear

have him

to

ap¬

before the committee.
Senators have taken to

Several

the floor to express their indigna¬
tion over the visit, notably Sena¬
tor Dodd of
an

Connecticut, who calls
outrage and suggests that we

should

the

observe

visit

with

a

period of prayer for the enslaved
peoples of Hungary and the other
satellite nations.

Underdeveloped Areas

The

balances.

outlook

4v

..

to be

appears

the

in

trialized

of

terms

countries

trade

and

raw

materials.

S.

U.

import

^cannot

is

count

a

will cancel his visit.' He cancelled

trip to the Scandinavian

a

when

They

but the volume of capital

can,

for

significant long-run improve¬

any

pattern on another term of trade wind¬
toward working up an incitement fall in the foreseeable future.
In
to disorder if and when the Rus¬ fact they will be lucky not to lose
sian dictator appears. The pressure more of what they have gained
of ill-will may be worked up to during the earlier postwar period.
such a
degree that Khrushchev
Considering U. S. imports from

tries

gap

re¬

quired soon grows to gigantic pro¬
portions. Let us assume that a
country imports a billion dollars
annually and exports $900 million,
world.
Continued jrom page 13
Relatively small changes
leaving a gap of $100 million to be
increased appreciably either since in the production of agricultural
commodities in the U. S., Canada, filled by capital imports; and that
1937-1938 or since 1928.
its import requirements are grow¬
The substantial rise in the vol¬ and Western Europe will affect
rather
substantially the rate of ing at 3% per year while its ex¬
ume
of
imports into
the nonports increase at the rate of 2%
industrial countries has been made export growth in the non-indus¬
per year. In the first year capital
possible in large measure by the trial countries. Thus if the U.^.
imports of $100 million will fill
increases substantially its exports
nearly 25% improvement in the
the gap. However, at the end of
terms
of
trade
between prewar of grain and cotton, and if West¬
10 years gross capital imports of
and 1955, and by capital imports. ern Europe seeks to become more
$480 million will be required to
For
countries
like
India
and self-sufficient in foodstuffs, total
fill the gap, again assuming 5%
Egypt, Which accumulated large exports of these commodties by
non-industrialized
countries interest on loans amortized over
sterling
balances
during World the
20 years. At the end of 20 years,
decline,
thereby
offsetting
War
II, imports have been fi¬ will
it will require gross capital im¬
nanced by the drawing down of some of the increases in their ex¬
ports of other foods and of fuel ports of a billion and a quarter
these
ment

,u;.

There

the

slower rate than imports?

a

policies with respect to petroleum
The "Freedom House" in full doubtful,
especially
for
those and certain metals will also play
a significant role in the growth of
page newspaper advertisements is countries that are mainly export¬
of
the
less
developed
calling uppn the people to express ers of agricultural commodities. exports
their
feelings in letters to the In other words, the non-indus¬ areas.
editor.

fill

to

And the U.S. Economy

that

Senator

1 b

u

The

to

invited

address

rise

to

resulting from exports growing at

is

he

s*o

won't

it

warm

a

session

while

F

him

gave

the

coun¬

became

press

so

hostile.

the less developed areas, there has
been
lar

no

increase

value

U.

of

in the dol¬

even

S.

imports

since

the

Considering

the

that

fact

less developed countries increased
their

by

imports

50%

over

1957

(60%

and

(in constant prices)
between 1950 and

taking into

relationships

America)

Latin

for

the

account

between

past

imports

and

can

maintain

international
would

lending

continue

countries

to

under

institutions

make

these

loans

to

conditions,

especially when a debt serviceexchange earnings ratio of 10-15%
The

satisfac¬

as a

normal maximum.

of this exercise is

purpose

1951.

would

that

seem

deserves

President

better

he

do

can

world

anything

tensions

he

to

should

make

It certainly won't relieve
visit

if

the

becomes

opposition
so

exporting

spectively.

relieve

the effort.

tensions

In fact

leum

co¬

from the visit but believes that if

world

the

to

strong

that

Khrushchev calls it off or, coming

here, is insulted.
Nobody expects the American
people to greet him as a conquer¬
ing hero and to throw flowers in
his path. But they can be
quietly
polite. Crowds will be on hand to

_

Now let

turn to the projec¬

us

tions of exports of primary prod¬
ucts to Western Europe and North
America
the

(U. S. and Canada) from

rest of

the

jections

have

number

of

when

been

These pro¬
made

different

they

same

world.

reduced

are

on

bases,
to

Western

Europe

and

into

mainly

fuel

chiefly

agricultural

be

min¬

and

But for countries

there

exporting

commodities

great

difficulties,
largely depending upon the agriculturaF policies of industrialized
may

countries

North

of

America

the

and

Rule of Capital Exports
But

if the less developed

to

were

be made available

form of

wherever

.

United States and Canada
as

he

unit),

a

appears

(taken

estimates of the in*
net
imports between

take

on

somewhat

a

since

pect
den

in

different

recipients

the

service

of

coun¬

tries cannot export enough to buy

loans

for

capital

port

to

estimates

grants)

The
away

is

thing that we can't get
from is the fact that Russia

one

of

the

two

most

nations in the world.
we

would like to

we

powerful

As much
cannot

pletely ignore her, and
ignore the indisputable

we

as

com¬

can't

head

Washington there
siderable opposition to
hammer and

is

a

con¬

flying the

sickle

alongside the
American flag on the parade route
from the airport to Khrushchev's
place of abode. The State Depart¬
come

with the sug¬
Khrushchev should

gestion

that

not

treated

be

up

as

the

Chief




of

for

America and Western
Europe and
in the estimates of cotton
exports
by the U. S. to the rest of the

$2.2

over

billion

(excluding
capital inflow is
estimated
at
over
$1.6
billion.
About half of the gross capital in¬
flow

and

into

net

Latin

America

3 These

?95J'

is

GATT

are

Trade

pa?e 3S-

estimates.

1956,

See

In¬

GATT,

Optimistic

Geneva,
ECE estimate

75% increase from 1954-56
Economic Survey of

to

1975.

See

Europe in 1957.
Geneva, 1958, Chapter V, page 4. ECE
estimates are not net
import estimates as
js

the

case

with

GATT

estimates.

in

assumptions regarding U. S. trade
agriculture products, the rise in net

imports
gross

jection,
op.

will

be

imports.

cit.,

see

lower

For

a

than

the

rise

comparison of

in

pro¬

Trends in International Trade

pages

52-54.

J

1957

private direct investment and

the

remainder

loans

or

took

the

form

of

credits from both private
sources.
But

governmental

loan

capital

ment

help to stabilize prices and

above

all, benefit

If

known

the

on

that forgotten

the

as

other

maintaining

on

consumer.

hand

we

insist

agricultural

mineral

trade.
those

think it is important that

I

who

have

been

arguing for

the elimination of grants in favor
of

loan

to the less
realize fully
the implications of their position
for U. S. foreign trade policy.
more

developed

capital

countries

King Merriff Celebrates
Sixty-Fourth Birthday
King Merritt, President of King
Merritt
New

&

Co., Inc., 85 Broad St.,
City, mutual invest-

York

as¬

growing bur¬
charges on past

since private
be
serviced,
higher rate than

also

proceeds

the

remittances

our

loans and investments

from these investments. It is rath¬
er

King
ary

unlikely

and

private

invest¬

tinue

that the

these

to

to

net

capital

countries Will

exceed

the

con¬

earnings

re¬

ceived from these investments for

indefinitely the next twenty years. In fact,
to fill the gap between
rapidly most projections I have seen in¬
rising imports and stagnating or dicate that net capital exports to
slowly rising exports. Capacity to the less developed areas will be
service

increased

loans

and

for¬

eign investment depends upon in¬
creased foreign exchange income.
A
^

simple example will illustrate

this point. Suppose that

a

country

borrows $100 million per year at

lower than

our

that if

continue

earnings on exist¬
ing investments. This would mean

eign

we

loans

current rates
or

64th birthday Aug.

Merritt
in

&

Co.,

1946 and is

Inc.
a

25.
was

subsidi¬

of Channing Corp., New York.
was held for Mr. Merritt

party

Channing

Corp.

,

*

less

developed areas have
been large and rising in recent
years, so also have our earnings

flow

his

brated

founded
A

direct sales firm, cele¬

in the executive suite of

While
in

for

King Merritt

ment fund

Arthur

and
over

so, we may

to

make for¬

investments

at

the next decade

need to adjust

our

Oppenheimer

^rthur Oppenheimer, associated
with
Kuhn, Loeb & Co., New
York City, passed away Aug. 14.
Mr. Oppenheimer had been with
Kuhn, Loeb & Co. for 47 years.

cannot continue

Under

certain

in

was

and
ternational

In

accounted

largely by differences in the esti¬
mates
for net
imports of non¬
tropical
foodstuffs
into
North

of

the state.

ment has

optimistic

be

would

man

would

abroad.

can

adjustment problem would be
negligible. Moreover, adjustments
of this kind, i.e., permitting in¬
creased imports and avoiding sub¬
sidized
exports, would increase
real income in the United States,

why

for Latin America alone amounted

•in
proportion to the
treatment
Khrushchev receives over here.

the

the

the

a

areas

trade,

or

must

the imports they need for growth,

difference between the most
pes¬
simistic and the most

make

imports

developed

loans.

return

to

from the less
would amount
to only about 1% of our gross na¬
tional product and if we were to
do this over a period of 10 years,

petroleum

not have to meet the

visit and he will likely be received

is

a

adjustment for the United
States. A
doubling of our non-

large

grants, the problem would

frequently at a
can't we fill the gap with loan capital. In fact private capi¬
capital exports? External capital tal is not going to go into coun¬
crease
in
for reasons of
curiosity, and the
both private and public, has been tries unless the balance of pay¬
and
1973-1975
Hungarian society in this country 1953-1955
range
quite important in financing the ments prospects are favorable or
from a low of 12% to a
has admonished its members not
high of
imports of
the
less
developed unless private enterprise intends
to create any untoward incident. 60%.3 While the margin between
areas
in
recent
years.
For ex¬ to produce for an export market
It should be remembered that these figures is very wide, the in¬
ample, in 1957 gross capital inflow and is permitted to retain its ex¬
teresting thing to note is that
Eisenhower
him

greet

involve

I should also point out that this
problem cannot be solved by sub¬
stituting direct private investment

Western Europe.

the

conceptual basis, i.e., net im¬
of
primary products into

ports

erals.

a

but

This will not

to indicate that aid in the form of

if we exclude petro¬ tory rates of growth in output un¬
loans is not a feasible substitute
imports, U. S. imports from less their imports grow at a rate
for trade. Loans can provide an
the non-industrial countries were of 2-21/2% per year oyer the next
operation than this.
He studied
important boost for less developed
substantially lower in both 1957 couple of decades. This means that
the matter of inviting Khrushchev
economies, but within a reason¬
and 1958 than they were in 1951 over the next twenty years, their
for several months and consider¬
able period of time their exports
and 1952. On the other hand, U. S.
exports
to
the
industrialized
able pressure was brought to bear
must rise at a rate exceeding the
exports to less developed areas countries must increase by some
on him to issue the invitation.
rate of increase in their import
He
were
less
than
$6.2
billion
in 50-60% over current levels. Ac¬
has repeatedly said that he doesn't
needs if service on the loans is to
1951; but were $7.9 billion and cording to current projections, this
look
for
any
important results $7.0 billion in 1957 and 1958 re¬ will not be difficult for countries be maintained. Of course, if aid

It

Eisenhower

com¬

non-industrialized

with

countries.

and
policies which restrict the
normal growth of exports of the
industrialized countries, the
dollars to fill the gap. In other less
words, at the end of 20 years it only way that we can provide the
will take over 12 times the amount capital and the growing volume
of gross capital inflow to fill the of commodities needed by the less
gap as it took for the first year. developed countries for satisfac¬
rates
of
growth
will
be
Moreover debt service payments tory
will be equal to nearly 60% of through grants. In other words if
the country's export earnings. It aid is to be provided in the form
is scarcely conceivable that our of loans, aid is not a substitute for

output growth, it is most un¬
is regarded
likely
that the less
developed

countries

wheat in which we are

and

petitive

Murch Adds to Staff
(Special to The Financial Chronicle)

CLEVELAND, Ohio

—

Paul T.

Chess, Jr., has become connected
with Murch & Co., Inc., Hanna

Building,

members of the New
Exchange. Mr. Chess
with
Central

York

Stock

was

previously

States

Investment

Co.

Volume

Number 5876

190

.

.

Commercial and Financial Chronicle
The

.

(841)

didate for

The Market... and You
BY

WALLACE

improvement with¬

too much time

out

*

The

STREETE

*

.

•

market

*

■

shown

concern

by the

strike settlement

over

against a tradition of
ignoring labor disputes, stems

Stocks gave up
to

joust with

all attempts
peaks this

new

the first

century of its exist¬ from
have been

There

ence.

prob¬

fear

a

week and settled down into

tember

definite

steel;

pattern

doldrums

with

a lems, and continue to be some,
the
domestic
oil
com¬
summer for
the
volume panies. But for long-term and

of

That the

hoped-for support

dustrials and 160 for the rails
had failed to stem the
was

selling,

clearcut downside pen¬
of a trading range,

a

etration

but

failed

this

to

spur

any

liquidation and both
averages snapped back before
urgent

the sessions

turned drab and

indecisive, with turnover fall¬

ing

below

share

two-million

the

level.

Aircrafts
The

Laggard

the

affect

strike

mid-Sep¬
of

some

the

will start to

A.

Wilfred

1954

industrial

for

more

although there
selling to be

year

wasn't

much

absorbed.
sjs

A

/

*

note

new

in demand for

was

some

:}?

individual

For

issues

pickup

of the

re¬

appearing

were

items

in

a

as

there

case

tion

once

sec¬

no^ funded
stock

more.

is

defensive

section,

:

;

some

debt or preferred

the

convertible

Edison's

hanging over the com¬

tures

set¬

the

tobaccos

Liggett &

were
able to Myers is a 5yield item,
spotty demand at times the dividend so well covered

concentrated in the

was

that

and

a

year-

discussion
of course members' questions and
investment problems.
Registration is open now at The
New
Peter

■Sept.

L. Bernstein

24,

Wilfred

A.

a.

vv

uireu

School,

66

open

West

Twelfth

Street.

May

from 5:30 to 7 p.m.
May, of the Commer¬

cial and Financial Chronicle, econ¬
omist and author; and Peter L.

With Emch & Co.
(Special to The Financial Chronicle)

MILWAUKEE, ■ Wis. — Col.
Bernstein, economic consultant to Charles
E.
Lancaster
Jr.
has
New York
Stock Exchange,
•joined the staff of Emch and Co.,

the

and Vice-President and director, 3965 North Sixtieth Street.
Col.
Bernstein-Macaulay, Inc., invest¬ Lancaster for the past 25 years
counsel, head the series. has served with the U. S. Air
Mr. May is also economic com¬ Force.

ment

mentator for
The

course

WNEW.

offers practical

objective investment

and
guidance to

First of Texas Branch

PLAIN VIEW, Texas — First of
handling of
money (including the non-profes¬ Texas Corporation has opened a
sional investor).
Discussing the branch office at 921 Broadway
problems involved in the selection under the management of J. M.

securities

their

and

manage¬

Barker.

!

stock of Con Edi¬

common

son

itself.

,

things at Blaw-Knox

Blaw-Knox

products and services available to the

metals industries have greatly expanded since

*

*

❖

The forced end of

«

reflect the trend of

deben¬

despite the fact that the
a lower yield than

utilities,

but it

be

a re¬

liens offer
the

In

will

Overall Caution

All this contributes to

•

'

show

There

definite.

more

for the Utilities

Another

individual portfolios,
end tax forum.

of

tlement appears

mon.

Demand

companies,
.estate
planning, Jhe role of bonds in

-

-

retreat to this defensive

vestment

all concerned with the

items that Archer Daniels Midland, a strained feeling toward the
were
and animal feed general market. In fact, there
repeaters on the new vegetable
highs lists. These issues held firm that offers a yield of is a rather thorough culling
up well through the 1957-58 nearly 4M>% well covered by of the list of convertible sen¬
market reaction when
con¬
earnings that jumped from ior issues by the financial
sumer
spending was hardly $2.45 to $3.38 in the Jiv#? 30 services to find hedges against
affected by the business de¬ fiscal year, against a $2 re¬ an indeterminate future. One
cline. With the market's im¬ quirement for the dividend. that was
something of a dou¬
is
a
distinctly
non- ble
mediate future a wide-open This
hedge was the suggestion
leverage item since there is
question mark, it looked like
by one service of Consolidated

the

among

Among the topics to be treated

Forecasting and market tim¬
ing,
inflation,
fundamentals
of
security analysis, portfolio man¬
agement, mutual funds and in¬
are:

the added cost until

been

long time
defensive

a

tailing and mail order issues, selling to be absorbed around
Lerner Stores and Gimbel be¬ Labor
Day. One such is
ing

B.

in Seidman and Seidman.

settling the
strike are possible. Here, too,
there is no way to estimate

some

haven't

that

bandied about for
a

today's

stall the business

costs incurred in

names
*

on

:•£

t*fi

the

series

management problems.

produc¬

persistently lag¬
strike, however, is concerned
gard items continue to be the strangers to lists of preferred with not
having to raise prices
the profes¬
aircrafts with some of them investments for
once
more,
and a pinch on
sionals.
backing to repeated new lows
profit-margins from added

v

Guest

experts include: Jerome
Cohen, in charge of Graduate
Studies,
B e r n a r d
M.
Baruch
School of Business, City College;
y.
The New School announces a
Lewis
D.
Gilbert, champion of
series of 12 sessions on "Managing
rights, lecturer and
Your Money: Investing in Today's stockholder
author; and J. S. Seidman, author¬
Markets," beginning Thursday,
ity on taxation and senior partner
money

tion

slowed the

1958

and

May and Peter 1. flern-

lead

to

pinch. That in turn

greatly and do much to
upturn with
annual increase in demand, a
damaging effect on the prof¬
but it is a decade since the it
upturn so general in the
entire industry went through domestic
economy.
a
*
*
*
year when demand didn't
exceed that of the previous
The pattern of vigorous re¬
year.
;%■"■
bounds in the past when steel
*
:jc '
strikes were settled, and mar¬
The net result is that some
ket action to suit, is slightly
of the top names in the field
suspect at the moment. Past
are
still available at yields
strikes called for stiff price
running into the 4% bracket, increases to
keep profits tilted
including the Standards of
upward and the benefits of
Jersey and Ohio, S o c o n y, this were reflected in the
Richfield, Cities Service and market
prices long before
Atlantic Refining — familiar
they became actual. This
names, all of them, and no
of

levels around 650 for the in¬

when

feel

the

past

consumers

will

lightening to a low for nearly steady growth, the oil indus¬
a
try ranks high. The recessions
year and a half.

that

continue

may

avoidance

fit the New School
stein

rumors,

series emphasizes the
of
prevalent psycho¬
logical foibles and pitfalls, through
a realistic appraisal of investment
goals and opportunities.1 "
the

ment,

Investment Course

elapsing."

17

60-year

a

the company

abandoned dividend record of unbroken
$4 regular
quarterly payments by United
extra for a flat $5 Fruit served
mainly to kindle

1955.

Many of these products new to Blaw-Knox

the-old schedule of

quality issues enough to give
the utility average better sta¬ and $1
bility than the rest of the list. regular basis. The dividend is
This average had rough going
earlier in the year when the

exnec^ed

^rT

b°

to

»

pressed

margin of around $3 this year
further
improvement in
money market tightened, but in
now
has worked back some earnings
that covered the
half a dozen points from the payment half again over last
low, or two-thirds of the de¬ year.
cline.
*

Hails

*

j^nd oils are the neg¬

lected items, their temporary

splurges in the summer rally
solving little as both ran out
of
steam
abruptly. Barber
Oil's shift

to

in

cash

lieu

lated

of

to

help

stock

dividends

wasn't

calcu¬

idled

costly
some

There

abortive
rumors

generally.

or

the

for

has

on

grade standing
earnings recovery
slow, was offset to

be

extent

than

in the

by

the

issue

lows not

seen in
dozen years. And

a

price range of the 20s,
the

attractive to the public,

issue

is. considered
that

one

as

ill-found

over

fifty

per

cent.

These

highly engineered items include a com¬

by some
represented in¬

plete line of rolling mills, steel strip processing
lines, pipe and tube mills, and a host of other

products designed, engineered, and buiIt for
service in the metals industries.

fair price

Geared to grow with the world's metals indus¬

tries, Blaw-Knox activities in these basic markets

imminent

such

as

Steel which has

one

herent

end

by the

in

Carpenter

quality at

sugar

[The
article

nonunion

force.

its

on

time

operation and another with a
contract, still

of

an

sagging to

^o

increase in company sales

tag. The biggest obstacle still
and some spotty
not able to be weighed is the
the
companies effect of Cuba's reform law

an

that aren't closed down

surprise stock split and higher
strike,
dividend was of only momen¬
tary help either for it

flurries
of

to the strike

the petroleum demand

section and Southern Pacific's

carriers

will
some

an

of

some

■

occasional,

been

have

that

of the mills.

85%

have contributed to

de¬

by the bad news. That

and that

shrug off

strike

well

issue

its investment

more

Steels continue to
their

an

United Fruit has lost

Mixed Reaction to the Steels

*

in

interest

views
do

not

coincide

"Chronicle."
those

as

Some

a

are

operations.
expressed

in

complemented by the Company's broad-

this

necessarily

at

any

those

of

gauge

services to the Processing, Public Serv¬

the

with

They

are

presented

of the author only.]

ice, and Construction Industries.

Oils' Action

Puzzling
earnings projections of $4.75
neglect was a bit last
year, $8 this year.and
inexplicable since the earn¬
possibly $14 in the 1960 fiscal
ings reports have been good
and the industry currently is period make the Carpenter's
in the fanfare of celebrating $2 dividend obviously a can¬
The

Beadling Adds to Staff

oil




-

...

:

(Special.to The Financial Chronicle)

YGUNGSTOWN,
C.

Klingman

has

Ohio —David
been

added

BLAW-KNOX COMPANY

to

the 5taff pf Beadling & Company,
Union National Bank Building.

7200 Blaw-Knox

Building

•

Pittsburgh 22, Pennsylvania

18

The Commercial and Financial Chronicle

(842)

He

News About

his

position

new

BRANCHES

NEW

OFFICERS, ETC.

REVISED

CAPITALIZATIONS

Cassel, whose appointment
was
approved by the Directors
Aug. 6, joined National Newark &
Essex Banking Company in 1953.
After completing two years serv¬
ice with the Military Forces he
was

as¬

signed duties in the tax division
of the Trust Department.
He has

the Federa¬
Trust Company,
Y., Jeremiah De
Smet Maguire, died Aug. 18 at the
Board Chairman of

N.

York,

He served as President
Bank until 1944.
He also
on the Board of the Con¬

Company will receive 1.20 shares
of

the

served

Com¬

Trust

and

Bank

tinental

Union

First

The

is

"It

to

favorable

a

stock¬

the

of

the ap¬

holders of each bank and

proval of supervisory authorities.
"In accordance with the retire¬

pany.

charge

*
*
ment
policy of The First New
National
Bank, Haven, Joseph H. Allen, Chair¬
Huntington, L. I. announced plans man of the Board, and Frederick
to
open its 25th office
in West D. Grave, Chairman of the Ex¬
Committee,
will retire
Islip's Southgate Shopping Center. ecutive
*

will

office

new

Secu¬

be

takes

consolidation

the

when

rity's 18th in Suffolk County, the
also
maintaining
seven
branch
locations
in
Nassau
as
well as an additional facility at

place. Henry L. Galpin, Chairman
of
the
Trust Company's Board,
and several senior officers of The

Base

by the end of the year.
"Edward M. Gaillard, President

Bank

County Air Force
Westhampton Beach.

Suffolk
in

The

of

*

*

*

will also retire

New Haven

First

will be
Chief

Company,

Trust

Chairman of the Board and

of the Marine Midland
Trust Co. of the Mohawk Valley,
Merger

with the Ilion Na¬
tional Bank & Trust Co., Ilion,
\N.
Y.
has
been
approved
by
shareholders. As of June 30, Ma¬
rine Midland Trust had assets of
Y.,

N.

Utica,

$124,000,000,
the
Ilion
assets
of $9,000,000.
For
share
of
the
Ilion
Bank

almost
Bank
each

22

receive
shares of Midland Trust.
would

stockholders
'

"

■

\

of

shares,

capital stock by the sale
from $4,525,000 to

stock

new

$5,250,000, effective Aug'. 7. (Num¬
ber of shares outstanding—525,000
shares,

The

statement
Joseph H.

joint

following

Bank, New Haven, Conn., and Ed¬
M.

ward

of

President

Gaillard,

Company, New Haven, Conn.
"The
Boards
of
Directors
The

First

Bank

Union

The

and

National

Haven

New

New

and

meet¬
ings held this morning, voted to
approve a proposed consolidation
Haven

Trust

Company, at

The

of the two institutions.

Haven

approximately

of

capital

and

000,000
funds of

$230,-

surplus

and

$16,000,000."

about

*

*

and

Bank

Connecticut
The

Hartford,
Thompsonville

Conn.,
Trust

Company,

Thompsonville,

Conn.,

Trust

Company,

and

under charter and title
Connecticut Bapk and
Trust Company, effective Aug. 3.
merged
of
The

bury,
of

'. *

*

*

,

capital

14,000 shares, par value $25).
*

First

The

as

Na¬

Union New Haven

tional Bank.
"For

each

share

stockholders

Haven will receive

held,

now

New

First

The

of

one

*

*

charter

A

issued

Aug. 18
converting the State Bank of Des
Moines, I>es Moines, Iowa, to the
was

Moines

Des

National

with

Conn.,

Dan-

stock

$300,000 was merged with and
the Fairfield
County Trust

into

*

*

•

tal! stock

400,000,

Secu¬

from

$1,200,000 to $1,from
$1,400,000 to

and

$1,700,000 by sale of new stock ef¬
fective Aug. 21. Number of shares
outstanding— 17,000
shares, par
value $100.
*

The
Lenoir

by

a

*

*

National

First

City,

of

Bank

City, Tenn.,
stock dividend increased its
Lenoir

capital stock from $100,000 to $200,000, effective Aug. 20.
common

of

shares

4,000 shares,

outstanding

—

value $50.

par
*

*

share, and

of Georgia, At¬

Douglas M. Robertson, Senior
on Aug. 10.

Vice-President,
*

Cassel

T.

ert

Assistant

and

Officer

Assistant

as

Trust

Secretary.

Granting

*

■

of

*

•

charter

a

for

the

Airport

Bank of Miami, Fla., to
be located in Miami International

Airport, is announced by Charles
E. Buker, President of the new

As

Owners

Appearing

Held

NOTICE

Property

Certain Unclaimed

of

NAMES

OF

APPEARING

OWNERS

AS

HELD

New York,

N. Y.

the

records

to

entitled

be

banking
unclaimed

to

of Miami

or

organization
property
in

Amounts

424

Due

on

Deposits

Hall

Adm.

Watson,

Amounts Held

Ann

N.

M.

Y.

#8424005)—3820 Laurel Ave.,
N. Y.

of

report

made

to the

Section
Law.

A

such

bank,

the

Abandoned

of

list

notice

the

names

is

file

on

the

at

located
of

property has been
Comptroller pursuant to

of

at

principal
20

New York,

abandoned

abandoned

on

before

or

establishing
to
In

receive

the

its

is

contained

be

Abraham,
Brooklyn, N. Y.

GOLDSOBEL,
Bronx,

the

will

31st next

satisfaction

to

be

persons

their

right

succeeding

November, and on or
before
the
tenth
day thereof,
such un¬
claimed property
will be paid to Arthur
Levitt the State Comptroller and it shall
thereupon cease to be liable therefor.




it

was

commercial
soon

bank—will

facilities

as

East

2776

33rd

Jerome

Street,
Avenue,
New

19,

Jan.

on

A

to

301

list

A

the

of

is

notice

the Abandoned/ Property

of

public financing by
Feb. 19, 1958.
of

1956.

to

March,
at that time

Capitalization

consisted

of

open

as

offer; complete bank¬

Vice-President

of

the

Airport Bank of Miami. He is also
Vice-President

of

The

Hialeah-Miami Springs Bank.
*

names

file

on

and

contained

to

open

in

public

inspection at the principal office of the
bank, located at 1790 Broadway, in the
City of New York, New York, where such
abandoned
property is payable.
Such
on

or

abandoned

before

establishing
to

receive
In

property

October

to

the

Pts

31st

will

next

satisfaction

to

be

paid

'he

from

fer

of

additional

$5,000,000 of
into
surplus,
in new
stock this year. Half of the pro¬
ceeds of the stock, g^e jvegt ipto
capital stock and the remainder
an

retained

earnings

sale

and

into

of

$5,000,000

*

R.

*

Trust

&

Company, San

at the Los An¬
geles, Calif, administrative head¬

State
;ense

Comptroller,
to

be

liable

and

it shall

therefor.

its

of

*

\ *

;

,

common

Ala., in¬
capital stock

$100,000 to $200,000,

effec¬

Aug. 18. Number of shares
outstanding — 4,000 shares, par
value $50.
*

A
to

charter^

the

*

was

Medical

com¬

for

applied initially to the reduc¬

tion of short-term

The

borrowings.

debentures

new

are not re¬

deemable before Sept. 1, 1964. On
and after that date the company

at its option, redeem the de¬

may,

bentures at 103V2 if redeemed be¬
fore

Sept. 1, 1965, and thereafter
at prices decreasing to the
prin¬
cipal amount on and after Sept.
1,

1975.

There

is

special re¬
providing for

a

demption privilege

reduced premiums in the event of

stipulated

declines

in

GMAC

United States retail receivables.'

of

products manufactured by

new

General

sale,

Motors to

dealers for

finances

and

instalment

retail

products

well

as

sales

of

new

used units of

make.

Financing
vehicles

98%

re¬

dealers'

such

as

related to
comprised

of the dollar volume of

effective

the

of

as

Aug.

ness

Cove,

of busi¬

close

of

Bank

Cove,

Orange

Orange

with

Calif.,

common
stock
of
$100,000 into
Security First National Bank, Los

Calif.,

Angeles,
stock

of

title

and

common

the

under

charter

of

Security First Na¬
tional Bank with capital stock of
$81,430,250, divided into 6,514,420
of

common

of

stock

in

re¬

first

the

bills receivable, after
unearned income and
held by the company

deducting

loss reserves,
at
June
30,

1959, amounted to
$4,248,959,000, compared with $3,670,656,000 at Dec. 31, 1958.

The merger

$73,902,500.

effected

was

with

purchased

Notes and

of the

the merger

14,

National

First

All

of

the

outstanding

capital

stock of GMAC is owned by Gen¬
eral Motors Corp.
Total capital
stock and

surplus at June 30, 1959,

amounted to $315,866,000.

the

value of $12.50 each.

par

Seattle

The

First

-

National

FIG Banks Offer Debs.
The Federal Intermediate Credit

Bank, Seattle, Wash., increased its

capital stock, as of Aug.
20, from $20,000,000 to $25,000,000
by a stock dividend. Number of

issue

shares

tures,

outstanding
shares, par value $10.

2,500,000

—

Banks

lion

Aug. 20 offered a new
approximately $118 mil¬

on

of
of

Three

directors

American

A.
has

the

to

have

board

dated
Sept. 1,
maturing June 1, 1960.

are

been

General

of

new

directors

Ruchton

are

at

the

par,

and

1959

debentures

being offered through John T.

Knox, Fiscal Agent, and a nation¬
wide selling
group of securities
dealers.

Oil Company of Texas,

H. Meadows, Board Chairman*
announced.

The

nine-month deben¬

4.65%

Priced

'

'

'

/

Proceeds from the

be used

3V2%

;

financing will

to refund $124

debentures

million of
maturing Sept.

1, 1959, and for lending operations.

Ardrey of Dallas, William L.
Kistler, Jr. of Tulsa, ahd Charles
W.

Lewis

Mr.

of

New

Ardrey

tional

is
the

of

Bank

a

closely

Amott, Baker Branch

York.
a

Republic

Dallas

of

Vice-

senior

and

associated

Na¬
has

the
company's financing activities for

with

number of years.
Mr.

in

Kistler,

former

partner

of

firm

the

Pa.—Amott, Baker
Incorporated, have an¬
nounced the
opening of a new
ALTOONA,

&

Co.,

branch office in the Central Trust

Building

under

Fenton R.

a

Merrill

Lynch,

Pierce, Fenner and Smith, Inc., is
an
independent oil operator and

the

direction

of

Middlejsworth, who has

been

in

since

1936.

securities

the

He started

business

his career

Baker & Co. but sub¬
sequently served as a registered
has been associated with General
representative for two other New
American in operating a number York
Stock
Exchange
member
of properties for over 20 years.
firms
before
rejoining Amott,
the

the
in

Lewis

law

Lewis

of

is

firm

senior partner
of
Townsend

in

new

York, counsel for
since incorporation

directors will increase

TAHOF, Calif.—Walston

Co., Inc. has

Robert N.
a

oc

med

a

Maguire will serve as

registered representative in the

Altoona office.

and prior

a

He has been asso¬

NYSE member firm

thereto was with a pub¬
firm in Altoona for

lic accounting

New Walston Branch
&

Baker & Co.

ciated with

the board to 17 members.

LAKE

with Amott,

&

New

company
1936.

The

National
has

the

six months of 1959.

issued Aug. 11

Bank, Houston, Texas, whic^

of

available

for the purchase

or

ceivables

*

Center

be

automotive

it-

'

;

will

Merger certificate was issued
July 28, approving and making

Mr.

Opp,

and

any

quarters.

*

dividend, the First

Bank

the general funds

GMAC finances the distribution
elected

was

Vice-President of the First West¬
Bank

first

GMAC since

of receivables. Such proceeds
may

* ■■

*

Keener

interest.
the

The net proceeds from the sale
the debentures will be added

pany

surplus.

John

accrued

ma¬

priced

were

represents

be

is divided
equally between capital stock and
surplus.
The increase of $14,000,000 in
capital
funds
during
the
past
three
years
was
accomplished
through transfer of $4,000,000 of
retained earnings to capital stock
through stock dividends, trans¬

tive

right

the

thereupon

creased

same.

succeeding November, and on or
before
the
tenth
day thereof, such un¬
claimed
property will be paid to Arthur
Levitt

National

persons

their

stock

and

issue

maturing debt

are

services,
plus
foreign
ex¬
change facilities, and expedited
services for travelers," he said.
Robert
E.
Hesterberg
will
be

a

100%

This

$21,000,000
capital
stock
and
$20,000,000 surplus, a
total of $41,000,000. Present capi¬

been

By

debentures, which

Sept. 1, 1980,

Capitalization of the First City
National, Houston's largest bank,
has been increased substantially
since merger of the City National

Bank.

report of unclaimed property has been
to
the State Comptroller
pursuant

Section

The

on

1960.

President

Executive

$125,000,000 General Motors Ac¬
ceptance Corp. 21-year 5% deben¬

at

available,
according to Mr. Buker, who also
heads The Hialeah-Miami Springs

Executive

underwriting
headed by Morgan Stanley
& Co. and
comprising 226 invest¬
ment firms placed on the market
yesterday (Aug. 26) an issue of

ture

meeting

L.
33rd

made

paid

same.

N.

1739

Max,
Y.

ZAUDERER, Dorothy, 102 East 52nd Street,
New York, N. Y.
•

such

in

$20.

nationwide

group

tures.

bank to

new

bank—Miami's

new

"We will

MOCCIA, Jennie, 2163 Mapes Avepue,
York, N. Y.

to public
office of the

Street,

banking

N. Y.

Bronx,

Law.

open

The

BERKOWITZ, Harry, 1305 Wilkins Avenue,

in

York, where such
payable.

property

October

to

the

Broad

New

property

Such

and

Property

banking,

pro¬

the airport.

serve

Acceptance Debentures

by the shareholders at the annual

is

ing

unclaimed
State

301

inspection
City

unknown

Co., Acc't of Robert Kauf¬

(Policy

Brooklyn,
A

Ins.

OF

Y.

entitled to unclaimed
amounts of twenty-five dol¬
to

branch

necessary to form a

AMOUNTS DUE ON DEPOSITS

or

Hain—Address

Life

man

N.

above-named

the

of

FISHER,

Owing for the Payment of
Negotiable Instruments

hibits

more.

or

48th

St., New York, N. Y.
Est. Maria L. Watson, Dec'd
c/o
John
P.
Walsh,
420
Lexington
Avenue, New York, N. Y.
John

records

lars

Keppler
West

PROPERTY

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

the

Herman

is

Offers Genera! Motors

stockholders'

independent elected

chartered to operate at

airport. Since Florida law

an

addresses

property in amounts of twenty-five dollars
more.

York,

New

above-named

the

of

organization

ever

YORK CITY

NEW

persons whose names and last known
addresses are set forth below appear from

OF

BY

ASSOCIATION

LOAN

The

Bank

PERSONS

FEDERAL SAVINGS AND

SIDE

WEST

OF

UNCLAIMED

CERTAIN

By

Empire Trust Company
of

value

par

Morgan Stanley Group

A

adopted

Names New Directors

The Airport Bank
the
only

LEGAL NOTICE

Persons

of

by

common

Munsick, President,
Trust Company of Morris County,
Morristown,
N.
J.,
today
an¬
nounced the appointment of Rob¬

believed
Names

recom¬

Directors.

the death of

announces

George

LEGAL NOTICE
of

of

by the
Board
proposes
issuance
of 2,750,000 shares of $10 par value to
replace the present 1,375,000 shares

Bank.

Notice

resolution

shares

*

Trust Company
Mr.

*

was

shareholders

,

the

rity National Bank of Sioux City,
Iowa increased its common capi¬

business Aug. 7.
if

the

Board

Francisco, Calif.,

lanta, Ga.

'

*

stock dividend

a

Company, effective at the close of

if.

A

ern

con¬

be known

will

bank

from

stock

$100,000
to
$350,000,
effective
Aug.
7.
(Number of shares outstanding—
mon

Texas,
to

Bank's

Thursday, August 27, 1959

.

talization of $55,000,000

*

a

'

solidated

Di¬

a

National

stock dividend, the James¬
town National Bank, Jamestown,
North Dakota, increased its com¬
By

Number

Bank,

common

National

Danbury

of

New

Union

First

"The

sources

Union and New Haven Trust

The

was

Indiana

of Indianapolis, Ind.

Bank

By

National Bank will have total re¬

*

issued Aug. 24 by

was

Coy

J.

Departments.

The

Allen, Chairman of the Board of
The
First New Haven National

named

Schram

the

City

mended
the

split of the stock
National
Bank,

.

and First National banks in

*

of

Emil

combined

the

of

head

as

Trust

*

*

♦

*

*

Reid, First Vice-President of The
First New Haven National, will be; Bank, Des Moines, Polk County,
Iowa. President is Lindley Finch;
President
of
the
consolidated
Cashier is David G. Wright. The
bank, and Edward G. Armstrong,
Senior
Vice-President
of
The bank has capital of $150,000,000
and surplus of $288,706", making a
Trust Company, will be Chairman
of
the
Executive Committee as total of $438,706.

value $10).

par

Vice-

be

Board.

the

of

of

its

value $10.

par

Northwest

its

increased

Mass.,

Boston,

common

will

Bank,

Chairman

well

Bank

National

Merchants

The

of

*

*

*

President of The First New Haven

National

Ohio

Davis,

H.

Abbott

bank.

dated

Bank

increased

National

First

rector

First
Houston,

is

4=

*

The proposal will be acted upon

common
capital stock from $1,320,000 to $1,500,000 by a stock
dividend, effective Aug. 19. Num¬
ber of shares outstanding—150,-

000

pf

*

*

Middletown,

consoli¬

Officer of the

Executive

Traylor;
Cashier
Walden, Jr.

A two-for-one

whose

Security

ITie

division

this

of

*

The

subject

two-thirds

of

vote

in

been

since 1957.

Haven

New

National Bank.

of 82.

age
of

and

Bank

tion

New

Trust

The

of

stockholders

R.
E.

Mr.

returned to the bank and

the

George
Thomas

assume

♦

NEW

Banks and Bankers

will

Sept. 8.

CONSOLIDATIONS

.

branch

$400,000 capital and a surplus of office in the Lakeview Building,
$600,000
in
resources,
to'alirg with
Rodger
W.
Bridwell
in
$1,000,000. Serving as President is charge.

several years.
Herbert W.
in
He

the

Masters will

serve

Mutual Fund Department.

comes

to Amott, Baker &

Co.

nationally known Mutual
Fund Distributor and will special¬
ize in the securities of a large
from

a

nvrf

nnmnomPO

Volume

Number

190

5876

.

.

The Commercial a.nd Financial Chronicle

.

(843)

Our

World Business Leaders May Begin Trade
Talks With Russia, Cortney Reveals
Industrialist-economist,
tion

of

Mr.

Soviets'

Union

into

of arbitration.

of principle

is

direct

mum

prepared
with

talks

business leaders of the free world
the

expansion
trade, accord¬
ing to an of¬

on

ficial

of

East-West

of

The

pointing to the need for the

Cortney cites obstacles,

acceptance

Soviet

enter

posal

governing body of

the

of

Chamber

International
which

Commerce

will

in

meet

added
that
discussions among the
Chamber's
leaders
are
already
Paris

the

in

He

Autumn.

Mr.

during an exchange of
views in Mos¬

Soviet

trade

economic

and

officials

the

?

and

Russian

States Council
Chamber

of

Commerce and President of Coty,
At a press conference held

with

policy

regard

to
that

conservation

the

of

course

International

nation's

own

I got the impression in the

gold.

Philip Cortney

of the United

man

but would

gold

their

discuss

interested

were

on

situation," said Mr. Cortney, "in
spite of all my efforts I was un¬
able to obtain any light on the

if
W

'

Philip
Cort¬
ney,
Chairof

<< !

-

this matter is shrouded in mystery
and

considered

is

Russian

the

of

secrets

of the top

one

state."

Inc.

the

at

New

Overseas

Press

Club,
City, Mr. Cortney

York

in
re¬

Silver Greek Common

vealed

that the meetings resulted
in initial steps towards the for¬
mation of a joint committee to

"explore the terms
ular

and

normal

Slock

could

be

Being Offered

Maltz, Greenwald & Co. on Aug.

which reg¬

on

trade

established between the capitalist
and the communist countries."

offered

26

1,600,000 shares of Sil¬
Precision Corp. com¬

Creek

ver

stock at

mon

price of $2.75 per

a

share.
Under ICC Auspices

The

Mr.

committee

according

to

Cortney

under

would
be
formed
auspices of the Inter¬

the

national

Chamber

of

Commerce.

The Chamber represents business
leaders
in
40
countries
outside
the

communist

nized

bloc.

officially

It

is

recog¬

many

by

inter¬

200,000

shares

total

the

Of

offered,

being sold for the
and 1,400,000 shares are

are

company,

selling stockholders.

Net

the sale of
will
used for modernizing plant and
from

proceeds

stock offered for the company

equipment at Silver Creek, N. Y.;
for

acquiring and installing diefacilities;
for
reducing
United
Nations
as
the
chief casting
obligations and redeeming all out¬
spokesman for world business in¬
standing ten-year convertible 6%
terests.
Mr. Cortney's conversa¬
tions
originally had been con¬ debentures; and for development
and promotion of The North Or¬
cerned
only with overtures by
the Russians on the formation of lando Co., a wholly-owned land
a
USSR
national
committee
of development company in Florida.
governmental bodies including the

Products

the Chamber.

The

USSR

functions
trade

Chamber

which

merce

more

than,

as

had

merce

Mr.

of

Com¬

Cortney said
a
ministry of

as

chamber of

a

been

as

the

Russian

na¬

proposed

body to constitute

com¬

a

tional

committee

tional

Chamber. In discussing the

question

of

of

the

Interna¬

Russian

membership
with N. V. Nesterov, head of the
USSR Chamber, Mr Cortney pro¬
posed the joint committee.
He
that

said

"Mr.

Nesterov

thusiastic about
I

proposal and

to initiate it within the

agreed

ICC and

work

for its implemen¬
Cortney also proposed

tation." Mr.
"that

the

en¬

was

the

Russian

Chamber

of

Commerce accept the decisions of

the

Court

ICC

in

arise

of

all

conflicts

from

USSR

and

Arbitration

trade

the

the

of

which

may

the

between

other

nations

be¬

longing to the ICC."
Discussions With

Soviet

Economists

Discussions
led to
that

a

he

with

Nesterov

suggestion by Mr. Cortney
should

the

meet

Russian

economists likely to serve

on

the

proposed committee. Mr. Cortney
thereupon had extensive conver¬
sations

with

a

Vice-Chairman
of

World

of

Academy
other

and

of

Institute

Interna¬

the

of

trade

all

Mr.

preliminary

the conditions necessary

including a code of ethics
sanctions to govern

Cortney

in

units

latter

various

quired last
in

year, owns

Seminole

where it is planning

ing

was

optimistic

acceptance of the




pro¬

The

the

for

in

loanable

funds

is

increasing and, with the
Gov¬

some

order to

defensive

V

tone

■

which

has

evident

been

of

in

late

the

■■

about 3,640
Fla.,

County,

■

;■

..

'

■

■

.

'

■'

■

■

■.

'

The money market appears to be moving into another cautious
vein because there is'considerable question as to what will be the

W. O'Brien to general partner¬
ship, William Shippen Davis to
general and limited partnership,
and

Esmonde

ited

partnership. All

steel strike will

come

place there will be

coming of fall. A settlement of the
days and after this has taken
to go on with respect to the future course
of these

one

more

of

economic conditions.
It is evident that a prolongation of the
disagreement between labor and management in the steel industry
will have an adverse effect upon the business pattern. Accordingly,
it is not expected that there will be any further tightening of
money conditions as long as the steel industry is closed down.
On the other hand, it is not to be expected that the restrictive
monetary policies will be loosened to any degree during the time
when the steel strike is on, unless it goes so long as to cause the
economic ^picture to deteriorate. To be sure, there is quite likely
to be a sustained and sharp demand for funds this fall and winter
and, unless there is some help from the Federal Reserve Banks,
the money market might be very tight. This could result in an
increase in the prime bank rate as well as the discount rate.
However, it is not expected in most money market circles
that the Central Banks will allow the interest rate pattern to
tighten very much, if any at all, the early part of the fall, since
there are business and crop movements that have to be financed.
And these are the elements that go to make up the economic
pattern which must be kept on a fairly even keel. However, if
there is a greater desire to push it downward in order to thwart
the forces of inflation, then higher money rates and tighter credit
conditions is one of the ways it can be done with the passage

of

time.

The short-term rate for Government obligations has been
moving upward, and this may be attributed in no small measure
to larger offerings of Treasury bills which are being used as a
means to raise new money.
This increase in near-term rates has
carried the yield on 91-day Treasury bills to levels above the
discount rate, which was raised to 3V2 % last May. The demand
for the most liquid Government is, however, expected to continue
to be sizable, and the Treasury % new money raising operation
involving the shortest Government issues should be completed in

the not too distant future.

the

and

market

bond

since the Treasury

This should
should

market

F.

O'Brien

are

mean

be

in

that both the money
for

a

short

breather

solved

of Ang.

as

New Firm Name to
Be

Porges Singer

On

Sept. 3rd, Donald J. Singer
will become a partner in Porges
&

Co., 15 Broad Street, New York
City, and the firm name will
changed to Porges, Singer &
Company.

be

Irving Weis & Go. to
Admit S. Florin
Irving Weis & Co., 40 Exchange

Place,

been

formed

vestment

to

continue

business of C.

the

B.

has
in¬

Whit¬

aker, 25 Broad Street, New York
City.
Officers are Clarence B.
Whitaker, President; William
Kobe,
Vice-President; and An¬
thony Zappa, Secretary-Treasurer.

New York City, members of
Exchange, on

the New York Stock

Sept. 1 will admit H. Guion Bene¬
dict, member of the Exchange, to
partnership.
Mr. Benedict is a
partner in Richards, Heffernan &
Benedict

Aug. 31.

which

will be dissolved

members

on

Sept.

.

Florin to

3rd. will admit Stanley
partnership.

Carl Bagwell Opens
CLEVELAND, Miss.—Carl Bag¬
well
is
conducting a securities
business from offices at 217 South

Leflore

Avenue

the

under

of Carl Bagwell

name

firm

Investment

Now Price Inv. Co.
TUSCALOOSA, Ala.—The firm
name of J. E. Price Cotton Com¬
pany,

been

418 Greensboro Avenue has
changed to J. E. Price In¬
Company.

vestment

Now With Insurance Stocks
(Special to The financial Chronicle)

Colo.

DENVER,

Robert

—

C.

Building. Mr. Avrett was
an
officer of Liberty Investment

period

Government

Insurance

Majestic
formerly

Inc.,

Stocks,

Company.

Huge Corporate Debt Volume in Prospect
The capital market, after a

period of dullness, is again taking

Opens Branch Office

greater activity since several new corporate bond
issues are in prospect and it seems as though the fall and winter
of 1959 could usher in larger offerings of these securities. It does

branch

not

Avenue under the management

signs

on

of

appear likely that the Government will be coming into the
capital market for either new funds or for refunding purposes
since the Congress is evidently not going to increase the longterm interest rate level for Treasury bonds above the 4J/4% level.
This could leave the capital market pretty much for the flotation,
of corporate and tax-exempt securities.

Mass.

SEEKONK,
Johnson

Co.

&

office

—

1028

at

Dewey,

opened

has

Clayton L. Woodworth.

Specialists in

Net

U. S. GOVERNMENT

the

shares

common

the

FEDERAL AGENCY

SECURITIES

will

and

for

a

be

PORTLAND,

used

of expan¬
opening of ad¬

program

sion to finance the

(Special to The Financial Chronicle)

sale of

by the company for working capi¬
tal

and

Butchart & Cole Inc.

from

proceeds

ditional food supermarkets.

in

—

Chester E.

Ryder has become associated with
Daugherty, Butchart & Cole Inc.,
729 Southwest
Alder Street. He
was

with its principal
Brooklyn, N. Y., oper¬

Ore.

and

formerly with

Earl

C. May

prior thereto with Bosworth,

supermarkets in Brook¬

The company,

offices

Sullivan

lyn, and one in Bayside, Queens,
and presently plans to open two
additional markets,
one
in New

&

Co. of Denver.

New Butler,

Wick Office

ALLIANCE,
Ohio — Butler,
Park, N. Y., in September Wick & Company has opened a
and
anotner
in Hewlett, branch office in the First National
N. Y., probably in January 1960. City
Bank Building under the
Sites of these new supermarkets management of Edward L. Knight.
are located in Nassau County.
Mr.
Knight was formerly local
Hyde
1959,

For

28,

the

52

1959. the

weeks

ended

company

and

Feb.

its

manager
&

Co.

for Livingston,

Williams

Aubrey G. Lanston
6c Co.
INCORPORATED

20 BROAD

STREET

NEW YORK
☆

CHICAGO

☆

a

Newman

wholly-owned

ates three

way,

City,

New York

of the New York Stock Exchange,

for both the money market and the bond market for
obligations appears to be ahead of them, probably
during late fall or the early winter.

some

stock.

Inc.

F.

31.

Avrett has become affiliated with

until

Financing Effected

Co.,

partners in E.

O'Brien & Co. which will be dis¬

is not expected to be back in the market for
time late in October.
However, the test

funds

new

community

Corporation

lim¬

Richard W. O'Brien and Esmonde

Initial Common Stock

Whitaker

to

are

Company.

Supermarket Chain's

B.

O'Brien

Short-Term Rate Above Discount Levy

subsidiaries had
of North Orlando.
The company
consolidated
sales
of $5,577,643
does not intend to build but will
and net income of $108,304. Upon
confine its effort
to
developing
completion
of
the
current
fi¬
and selling lots and acreage tracts.
nancing, outstanding capitalization
If all the stock being offered is
of
the company
will consist of
sold, outstanding capitalization
$48,070 of sundry notes payable
Simmons & Co. on Aug. 26 of¬ after
will
include
5,072,851 shares of
one
year;
and
1,062,500
common
stock, $379,482 in notes fered 425,000 shares of Big Apple shares of common stock.
payable, and $157,363 in mort¬ Supermarkets, Inc. common stock
at a price of $2 per share.
The
gages payable.
Now With Daugherty,
offering marks the first public
sale of the supermarket
chain's
C.

F.

members
of the New York Stock Exchange.

trend of interest rates with the

and develop¬

incorporated

Picoli, Caulfield & Co., 20 Broad
Street, New York City, members
of the New York Stock Exchange,
on
Sept. 1st will admit Richard

' '

Outlook for Interest Rates

are

primarily for insect control,
odor replacement and defoliation.
The company also makes a special
purpose outboard motor for quiet
operation which is powered by a
heavy duty automobile battery.
The
North
Orlando
Co.,
ac¬
acres

to

seems

still sellers of these obliga¬

are

get the money for loans. The selling
of Government securities by the commercial
banks, according to
advices, has been concentrated in the intermediate-term issues.

are

and

sizes,

used

Scheffmeyer & Co., 115 Broad¬

severe

the

The

machines.
made

prices of Government securities

market very tight, the deposit banks must sell

ernment issues

generating and dispensing

Scheffmeyer & Co. Admits

transactions.

about

fog

eight

for the establishment of expanded
with

of

Academy.

and

the

exchanged

on

Pre¬

Russian

Sciences

members

They
views

Rubinstein,

the

Economy

Relations

tional

Mr.
of

Creek

high grade non-ferrous aluminum
and brass castings, and a full line

Now

Mr.

Silver

of

Corp. include intricate and

cision

Joint Committee Proposed

money

demand

offered for the account of

being
three

be

the

in

Russians

views

my

not

between

cow

attempts to
aspects of the gold situa¬

"The

in

of

probably can be attributed to concern over
the impending demand for funds and the very tight rein the
monetary authorities are keeping on interest rates and credit.

Top Secret

frustration

air any
tion.

talks

made

that

Cortney reported his com¬

plete

movement

Government market

Gold Policy

of

proposal

was

To Admit Partners

which

by

the

Commerce.
for such

Picoli, Caulfield

JR.

tions, not only for tax purposes, but also in order to obtain funds
are being loaned out by these institutions.
It is reported

gold.

on

taking place.

the

Chamber

A

Governments

on

CHIPPENDALE,

indicate that the commercial banks

Reports Moscow

International

>

T.

return from visit to Russia, tells of adop¬

on

completely

to

JOHN

preliminary steps to explore capitalist-communist terms of

trade.

The

Reporter
BY

19

☆

BOSTON

of

20

The Commercial and Financial Chronicle

(844)

beginning of
■

to

See It
We

As

.

Thursday, August 27, 1959

.

and afford

movement which could bring great benefit

a

keeping

all.

us

.

expenditures has been the high cost of labor and the hope
that it would be possible in this way to reduce the number
of wage earners on

the pay roll without hurting produc¬

increase production without adding propor¬
tionately to the number of wage earners on the pay rolls.
Of course, this is another way of saying that more steel
is now produced per manhour, or to use the popular phrase
tion,

or

to

"productivity" has increased. But if the informed observer
by now well aware of the fallacy of thie "produc¬
tivity" argument for higher wages, he is certainly lacking

is not

in

these and other

change in sundry fac¬

they were all through the situation is left
just about where it stood when the strike began weeks
ago. Politicians can no doubt pick out certain facts here
made handily available and use them to prove—or seem
to prove—this, that, or the other point which they want
to make. It is noteworthy that the leading figures in the
strike have not found it profitable to make a great deal
of the report of the fact finders—for the simple reason, no
doubt, that there is nothing there—and there cduld not
well be anything there — which has not already been
cited in arguments about the merits of the claims and
tors, but when

unable

have had

little

interest

in

it.

We

ourselves

find

to

say that what the steel industry does auto¬
matically sets the "pattern" for other industry or not.
Certainly, a good many have already set their own pat¬

terns this year.
In

final

analysis, however,—and this is the crux of
the current situation—a "pattern" of higher and ever
higher wages and more and more restrictive work rules
has long been set by factors far afield from any agree¬
ment in the steel or any other industry. It has been set
by the New Deal doctrine that the more labor is paid the
more consumer
purchasing there will be, with the con¬
sequence that prosperity is always promoted by higher
wages. It has been set by the long and persistent promotion
by the New Deal—and its followers—of labor monopoly
in this country. It has been set by the Rooseveltian tactic
of arranging a political combination between
organized
labor and the farmer with quid pro quo
strategy as its
basis.

Setting Factors

to

seem

with

facts, and refuse to

all to be

us

Continued from page 6
I

case.

efforts

do

would

Let

reasoning

my

such

nation's

they would
give you

me

score.

in

the

Fundamentally such a policy is
price-fixing of a very dangerous
type.'' Interest rates are nothing

bond

in

were

mind

reliable

most

the
the

still

to pay

4.75% for 43/4-year

money.

This happened to be on a refund¬

in these matters.

There is

ing but the arguments

persuasive had
the
borrowing
Why

would

3.75%

as

represented
new

money.

4.25%

not

have done

or

even

well.

as

is relatively sim¬
of all, the 4.75% was

answer

First

ple.

of

just

are

this

the rate necessary to compete with
other money market instruments.

In

our

not

the

economy

is
Funda¬

Treasury

preferred borrower.

a

mentally, however, these rates are
only the technical reflections of
state

the

of

which the

economic

in

affairs*

demands for funds

mentioned.

We

1957

a

the

and

1958

curities

first

market.

in

combination
avert

effects of the

these

First

of

all,

higher rates are likely to attract
new savings that might not-other¬
wise

have

and

of

been

created.

Second,
importance,
savings already accumulated may
be prevented from being used in
much

more

inflationary

an

result in

manner

so

to

as

unsustainable level of

an

economic

activity.
One example of this
kind of
thing is to be found in the stock
market.
True,
the
amount
of
credit being extended in this area
is relatively minor but credit is
not the only means by which un¬
sustainable economic activity may
be
created.
A
simple
example
will
us

demonstrate
that

assume

the

I

point.

own

a

Let

block

of

stocks

common

purchased years
ago. John Doe, impressed with the
record made by the stock market

a

by Congress to the President's insistance
rigorous labor measure than many among
legislators would like to have seems to indi¬

more

national

our

cate that there is

a

tide of

some

sort

running
sanity in this matter of labor unionism than
case

need

market.

since Franklin Roosevelt
upset the

more

toward

has been the

apple cart in the

'Thirties. Just how

strongly this tide is running we have
way of knowing.
We can only hope that it will not
presently vanish. Of course, we need much more than is

no

included in the labor bill that the President is

Order

purchases but I know of




or

assure

could

I do

you

otherwise

for

the

ill

stocks

The

are

feeling that I
more

This

is

be

mere

stock

of

felt

in

fact that

rising gives
can

neces¬

influence

rising stock prices to

could mark

a

Fed's

Governments

at

the

3.75

level

would become just that much

difficult.

But

if

even

we

more

not

were

larly

refrained

vantage

of

I

be

from

this

taking

situation,

ad¬

what

the

have

circumstances?

this

put

to

case

in

you

afford

now

to

freely.

the

economic

of

unsustain¬

activity

which

we

from

much would have been

would

I

certainly

ment securities

unfortunate

must

know

go

that

does

in

this

not,
secu¬

necessary?

caused by

was

position

an

in

Nevertheless I hesi¬

tate to think of what the technical

position

of the market might have

had

been

i^been known through¬

the

out

Winter

late

and

early

Spring of 1958 that the Fed was
actively buying longer maturities
it

as

pursuing its program of

was

expansion.
What kind
situation might we have had

monetary
of

a

on

hands

our

If

had

now

the

long-

market been 20 points

bond

we

be

can

Federal

the

thing

Reserve

itself

the

in agreement that

so

should

level

influence

to

as

not

long-term

of

is there

some¬

Reserve

Federal

not

might

for long-term Government securi¬
ties?
Can it not to a degree at
least

tion

create

in

of

many

to increase,
projects may

worthwhile

become casualties

or

will have

to

On

Influencing

Government

Bond Yields

let

to

us

examine

influence

^
the

the market for

tion

us

assume

under

3.50%

the Treas¬

and

normal

a

two

condi¬

yield

yield

to

corporates

4.00%.

Here

might be considered
between

spread

types of obligations.
further

assume

ors

selling

long-term

to

have what

we

market

a

which long-term Gov¬
are

selling

are

that

such

are

of the

Let

us

economic

that

Board

these

it

of

is

issued

securities.

with

the

option

the

Treasury's

3.75%

funds

new

or

of

purchasing
new

to

have

either

offering at
high-grade

purchasing

corporates

Inves¬

would

yield 4.50%.

What

investment manager acting

on

half

choose

of

his

clients

would

be¬

the

Government bond as against
corporate?
The
Treasury
might sell a few long-term bonds
the

agement problem?

vestors

Would

man¬

the

in¬

so

tighten and under such
the

What

for

corporate

market

a

Govern¬

program

might

is

need

we

friends

more

Treasury bonds, not fewer.
EXHIBIT

I

SUMMARY

BOND

INCOME,

PROFITS

AND

LOSSES

l!>4fi-I9r>8

(as

percent

of

investment)

average

(I)

(2)

Operating:

Net Profit

Year

Income

or

2.49%

CI)
Net

2.28%

Loss*

Income

4.77%

2.53

.28*

2.25

2.54

.61*

1.93

1949_____ 2.61

.35

2.96

1950_

.11

,

2.60

2.49
2.28

.47*

1.81

2.47

1.17*

1.30

2.62

1.46*

1.16

1954_____ 2.68

.97*

1.71

2.79

.16*

2.63

2.97

.55*

2.42

3.25

1.01*

2.24

3.50

.06

3.56

.28%*

2.43%

Average
1946-58 2.71%

Jacques H. Herts

Jacques

15

years

H.

ago

Herts, who retired
a Vice-President

as

director

and

of

Albert

Frank-

Guenther

Law, Inc., New York,
advertising agency, died suddenly
heart

a

was

Mr.

York
and

attack,

Aug 24th.

He

65 years old.
Herts

was

native

a

of

New

City, attended local schools
became

original

an

of the Albert Frank
of

ecessor

the

member

Agency, pred¬

present

company.

He retired 15 years ago after more
than 33 years of service with the
agency.

the

of the Federal Reserve System
allow
the
money
market
to

be

expected to decline in price to the

Edwards Branch in Ames
AMES, Iowa

—

A. G.

Edwards

& Sons has opened a branch office
at

315 Vi

direction

Main
of

Street

Max

under

the

Cutler.

point where the going rate would

4i/2%.

long

-

would
pro¬

government

newly
tors

of

Let

be

postponed.

situa¬

preferential

a

ury?

to

matter

allowing interest rates

posal

that

not

technical

that market.

decision

it

in
what is called the
secondary mar¬
ket as opposed to the market for

help the Treasury in its debt

disagree
with anyone who would say that
the June-July decline in govern¬

automobile.

If

the

fering the next time?

ond

government
still higher.

al¬

among

taking advantage of them

no

less because of
purchases. If $650 million of
purchases
were
insufficient
to
change the ultimate course of the
bond market, who can say how

conditions

on

few

only

spreads

these

buying my stocks and
financing my unneeded sec¬

then the rate

watching these
though we may be

to
unsuspecting
investors
but
would the amount be sufficient to

decline

since

market

bond

ernments

kind

11994568367278

ones

time has been any

the

thus

be

the

We at the Bowery are not the

mouse-trapped be will¬
ing buyers of the Treasury's of¬

in

the

me

should try to avoid. It is
hopeful
that the rate of 4.75% on
govern¬
ment
bonds will
dissuade John

I

that

holds

who

one

market

champion-

se¬

by

restored

was

do to give assistance to the market

Now

wirepulling by labor lobbyists would

can

and

but at least its adoption in the face of the
threats and
the

I

the economy.

rities

disorderly condi¬

a

government securities

term

transaction

Doe

know

also

higher in June 1958?

buys my stocks
for them.
I sud¬

Moreover, it is not even
sary
to
have
an
actual

spend

of

situation

bought $650 mil¬

years,

afford.

my

We

cash

recent
pays

months

six

of

that in July of 1958 the Treasury
and the Federal Reserve system

the

forces?

that

now

created in the government se¬

was

to

market

know

undesirable

most

in

free

the
the

throughout the closing months

lion

higher level of rates
the interplay of

Reserve

points1 in reflection of a lowering
of
long-term yields by the 1%

tion

from

inflation.

long-term government bond mar¬
ket had been put up another 21

are

resulting

of

control

the

Board, however, had adopted
former
point of view
and

pressing
against
the
available
supply.
What
are
the
salutary

able

The response
upon

of

Federal

the

was

Suppose

not

out.

would

we

buy corporates.
The
problem
of
maintaining

terms of what the

in the steel case, it will have to be
accomplished against
the force of these factors. And if these factors are
per¬
mitted to remain in full force, it is not
likely that any

other way

advice

long-term interest

why

the

no

relationships,

and

stand

rates,

the markets to be the arbiter

.75%.

become sellers of Government
curities

would

directly

disputes to such things as profits or productivity. What
we must have is
competition of a sort which will permit

corpo¬

to

Bank's policy of acting

order, was of the
opinion that he could not under¬

highest

interest

settlements of such

Spring

who had

person,

benefit of economic

bile which

"fair"

the

I

these

on

and

widened

now

our

year there were sharply to take advantage of the situation
viewpoints on the proper thus created by the
Fed, and if all
level of long-term interest rates. other
long-term investors simi¬

tion will continue. If continued inflation is to be avoided

of thumb which would relate

in

that

1958.

Governments
has

rates

Under

that

of

conduct

arrangement which attempts to defy the pressures these
factors exert will or would be permanent. There is no rule

to

Bowery Savings
the. expression of the price of rates were not 1 % lower than was
Bank does, but let us assume that
money.
Interference
with
this
actually the case. On the other no one took
advantage of the con¬
price, as in the case of any price-'
hand, there were others who felt dition created
by the Fed and the
fixing, interferes with the normal
that, while we were in a tempo¬
Secretary of the Treasury decided
functioning of the price mecnarary
recession,
the
long-range that this was an
nism.
opportune mo¬
economic problem of the nation
ment to sell new long-term bonds.
The Treasury has recentlv had
but

and

of the factors which

in

market

but since this money came easily,
I decide to buy a second automo¬

some

bonds should be allowed

divided

A

Price-Fixing

terms of some of
taking place

yields in

the events that

have

this

on

that

the

that

or

successful.

be

in

be

interests

best

,

think

not

; bond

denly find myself with a lot of
money that I did not have before.,

are

market, the Fed decided that

these

Savings Bank Operations Under
The Federal Reserve's Policies

really set the
pattern of wage inflation in this country, and until they
have been eliminated or brought under control that infla¬

These

to

come

than reasonable.

more

tween

in

Pattern

its

of giving a measure of
support to the long-term Govern¬

only to the point where
they yield 3.75%. Our spread be¬

The

the fact finders had nothing to
say about it, but it is well known that what is regarded as
the "pattern-making" quality of any settlement in the
giant steel industry has vested this controversy with more
than common interest in many high quarters. The fact
is, however, as the fact finders do point out, that settle¬
ment after settlement this year in industry after industry
has yielded higher rates of pay for the wage earners in¬
volved. This creeping inflation in the wage structure has
attracted little attention in official quarters and the poli¬

re¬

under

decline

counter claims.

Naturally enough,

accord

not

Dangerous

related facts and noted the rate of

ticians

do

terms which

ordinary common sense.
The Presidential fact finders set out

s

ment

normal

However,

program

which

nological advances, and, of course, a perfectly natural re'suit is that more is now produced with a smaller work
force. In fact, one of the compelling reasons for these huge

so-called

lationship.

Meanwhile, apparently, we must all possess our souls
with patience while union officials make wild statements

Continued from first page

yield of 4.00%, again

a

our

it

In

term

as

offered

be

assumed

Government,

decline

lAs measured

completely

a

can

in

price

Kalman Adds

free
that

(Special

bonds

similarly

by a 32 year 3YZ % bond
by the Treasury early in 1958.

E.
of

tc/

to

Staff

The Financial Chronicle)

MINNEAPOLIS, Minn. — John
Schwarz has joined the staff
Kalman

Knight

& Company, Inc., McBuilding.

Volume

5376

Number

190

.

.

.

The Commercial and Financial Chronicle

(845)

opened

Mutual Funds

30,137, one month earlier and
19,168 in the year-ago month.
*

Puritan

E. RICH

ROBERT

BY

to 30,549, compared

came

to

*

ter, Norfolk & Western, Southern
Pacific,
Standard
Oil
of
Cali-

Conn.

Gran-

—

Added to portfolio were Ameri-

*

Fund,

CWn* Now Offiro

v-rpens iiew vsrrice
STAMFORD,

fornia and Texaco.

21

its

boosted

Inc.

bery, Marache & Co., has opened
Interchemical a branch office in the Stamford

Metal-Climax,

can

Corp.,
Mississippi
River
Fuel, House Hotel under the manageNational Steel, Northern Pacific, ment of Daniel F. O'Connell. *
Sprague Electric and Tennessee
Gas Transmission. Eliminated
Joins Benjamin Lewis
in net assets, equal to $8.36 per were
American Airlines, Ford
(Special to The financial Chronicle)
share, while the tally at the end Motor of Canada, Libbey-OwensCHICAGO
111.
George E.
of fiscal 1958 was $46,217,891 in Ford, Pennsalt and Royal Dutch. G-jiiiiand
is now with Benjamin

net

assets

by

54%

its

and

net

assets per

How to Win Over the

•

As
of

Independent Investor

security analyst is well aware these days, the job
companies and industries is not getting any easier.

any

sizing

share by 32% during its
fiscal year ended July 31,
1959.
Year-end figures were $71,221,083

up

Diversification is creating a flock of new corporate hybrids. The
drive
toward
foreign investment by domestic firms is com¬

net

plicating the picture further. Perhaps even more of a challenge,
however, is keeping up with the swift and often abstruse tech¬
nological developments in U. S. industry.
But
if
the
analyst himself is sometimes confused, where
does
the
independent investor stand?
Now, as rarely before,
successful investment requires mere and more time, more and
more
information and more and more experience.
The strato¬
spheric rise of the financial media and the advisory services

standing

"

indicates rather clearly that a growing number
themselves ill-equipped to go it alone.

as

assets, equal
to
$6.33 per
share. The number of shares out¬

8,520,687.

few

years

investors

many

for
of

all
the

buying

of investors feel

an

those

investor

funds

faces

of

cash

fessional's
A

its

sit

*

first

American

annual

report,
Fund, Inc.

Enterprise

discloses

that

$423,657,

or

its

assets

net

per

30, 1959. This
gain of 350% in assets and
in

can

assets per

last

Sept.

10,

an-

Phillip Goos, President,
The fund, managed by Edward
A.
Viner &
Co., Inc., sells its

nounces

shares without sales load or com¬

just

how

fund

a

this

tap

can

mission
its

•

charges. The majority of

shareholders

had

have

their

positions only since last March 18,
the date of its public

offering.

'

electronic
•

control

systems

discusses

are,

stock fund,
had 78.41%
of
its
assets
in
that
type
of
security at June 30. Largest industry holdings were electronics
and electrical equipment, 14.45%;
oil and gas, 13.87%, and utilities,
10.98%. Biggest single issue holdings were in Fairchild Camera &
Instrument, Stanley Warner, Con¬
solidated
Cigar, J. I. Case Co.
51/4% convertible debentures due
Primarily

both

potential

their

American

militarily and commercially.
Adds Aviation-Electronics

News:

follows from the

"It

above

that,, overall, the electronic equipment manufacturing industries
should enjoy considerable growth in the future.
Mere growth,
however, does not necessarily imply greater profits. Nor does
it mean
equal success for each and every company in this
dynamic, ever-changing field.
The average investor is not
in a position to cope with the evaluation of the great variety of
complex problems with which he is confronted."
.

.

The

The

big

.

point is that mutual fqnds can cope with such problems.
challenge lies in making more independent investors

Cutler-Hammer.

and

1983

The Mutual Funds
Mutual

funds

billion,

now

or

for

account

3.55%,

the

of

$299 billion worth of common and

preferred stock listed on the New
York
Stock
Exchange, the Na¬
Association

tional

of

Investment

Companies has reported. Since the
end

of

proportionate
investment

the

1958,
of

amount

open-end

holdings has gained

company

by

In

1940, the association noted,
funds held only an esti¬

mutual
mated

% of 1%

securities.

that

years,

the

has

percentage

in¬

despite
the
supply of listed

accomplished

gain

securities

in

Over 1956, 1957 and

mutual

1

*

:Ji

of

Sales

mutual

leap

forward

total

net

in

assets

funds

took

a

July,
pushing
upward. At the

time, however, redemptions
higher. This was dis¬
closed
by
George
A.
Mooney,

same

also

ran

Other

than

ap¬

N.Y.S.E.

hold¬

investment

com¬

the

open-end

Association

of

Investment

Com¬

in the latest monthly

panies,

re¬

port of the association's 155 mem¬
ber companies.
During July, sales of open-end
rose
to $220,776,000,

shares

compared to $181,577,000
and

only

$160,675,000 in

in June
July of

panies also own about 3,500 listed
and unlisted bonds, preferred and

but

far

ahead

of

the

$41,403,000

Sale of
about

months

nine

share,

per

$15,532,827,000 compared to $14,971,906,000 in the previous month
and $11,121,627,000
in the same
month a year ago. Redemptions
totaled $73,704,000, slightly higher
than the $70,194,000 figure of June

proximately y4 of 1% each year,
reported the association.
ings,

$77,100,000, or $11.20 per share,
compared to $60,100,000, or $9.95

out.

prices.

at

Orr,

corporations, the association points

1958, the pro¬
fund holdings

constant

remained

H.

James

announces

President. Net assets amounted to

1958. Total net assets amounted to

stock

in

and

portion of
has

I8V2

past

nearly five-fold. This has

creased

sharp

of N.Y.S.E. listed

During

high in net assets was

than 2,000

executive director of the National

.15%.

been

1959,

more

earlier.

shares accounted for

new

the

during

Common

Investment

Stock Investment Fund

this Fund
are
possible
long-term
capital
and
income
growth for its shareholders.
objectives

Prospectus

upon

of

request

—

Chicago




—

Atlanta

—

Los Angeles

(Special to The Financial Chronicle)

Maine

FARMINGTON,
,

^.

win

1Yldiue

Sid-

om.

—

is now connected
with Coburn & Middlebrook, In-

"ey R. Gordon
COrporated

At

the

fund's

end

10

holdings
E.

and

2,000 Mary¬

the

of

largest
(in

were

month,

the

A MUTUAL

INVESTMENT

stock

common

order of size):

FUND

I.

duPont, Bristol-Myers, Gen¬
Tire
&
Rubber,
Abbott
Laboratories,
National
Cash
Register,
Hercules
Powder,
eral

Standard

Oil
of
New
Jersey,
Smith, Kline & French, Coca-Cola

National

and

Lead.

These

accounted for 24.5%

total

assets

of

stocks

of the fund's

$11,256,267.

*

*

*

WRITE FOR

Affiliated Fund reports net assets of $592,402,211, or $7.94 per

FREE INFORMATION

share,

YOUR INVESTMENT DEALER OR

FOLDER AND PROSPECTUS TO

of

July 31, 1959.
This
compares with assets of $477,785,334, or $6.94 per share, on Oct.
31, 1958. Over the nine months,
the

as

fund's

shares

68,816,582

increased

NATIONAL SECURITIES &

RESEARCH CORPORATION

from

Established 19 30

to

74,630,820.
H.
I.
Prankard II, President, attributed
the gain in assets principally to

Broadway, New York 5, N.

120

V»

market appreciation of securities
held in portfolio. Percentage of
investment in various industries:
banking, 9.36%; electric light and
power, 9.15%; chemical and drug,
8.12%; oil, 7.06%; stores, 5.34%;
container and packaging, 5.33%,
and tobacco, 5.13%.
*

*

Wellington
anced
new

*

Fund,

Inc.,

bal¬

a

fund, is putting most of its
money
into bonds.
During

seven

months

ended

FOUNDED 1928

in

in

bonds,

while
in

largely

119

governments,

th

purchasing just $78,000,000
stock.

common

Over

the

consecutive

same

period,

sales of common ■stock
came to $102,000,000. As a result,
Wellington Fund now has only

quarterly dividend
Ilea

about .62% of its assets in common

from

share

investment

compared
to more
than
67% at the beginning of 1959.

stock,

income,

net

payable

September 30, 1959 to stock
of record

September 4,1959.

Form Sandkuhl
WALTER

act

vertible

Officers

L.

MORGAN

Co., Inc. has been formed with offices inthe Commercial Building to

1984 with common,

6s

debentures

Co.

Martin

and

NEWARK,

were:

preferred, Philips Lamp
(1.000 florin shares), Riegel Paper,
Standard Accident Insurance,
Transcontinental Gas Pipe Line,
Intermountain
Gas
subordinated

.

fund

sinking

debentures 5 V2S 1968 ex-warrants.

N.

J.—Sandkuhl

of

underwriters

as

are

&

securities,

Henry Sandkuhl,

Dorothy
M.
Geiger,
Vice-President; Ileen E. Deserio,
Secretary-Treasurer; and Edward
G.
Brown,
Assistant
Secretary.

President;

Sandkuhl

Mr.

Howell

was

Archard

&

Treat

President

&

and

EATON & HOWARD

with

formerly
Co.

CONSIDER...

Amos

Co.

Columbia

Sales during the period:

Gas,
Klein Department
Stores,
Phelps Dodge, Puget Sound Power
& Light, Reynolds Metals 4Vz %
convertible preferred, St.
Croix
Paper, Detroit Steel 4%s 1970 and
Ling-Altec Electronics convertible

sal Mutual Funds, Inc. has been
formed with offices at 1010 Vermont Avenue, N. W. to engage in

subordinated debentures 5M>s 1970.

a

t

American

its

Mutual
net

v

,

Fund,

assets

toe.

by 45.67o

$121,413,228
during
the
12
months ended July 31, 1959. Over
period, the fund's net
share,
adjusted for
gains distributions, grew
by 28.1% to $9.78. These distributions came to 440 per share during
the

Universal Mutual Funds
T

u

docks

u

.ore®

g(0

o\ P

T\nc*Pa*

\oc'

securities business. Officers are
Rowe, President; Ed-

ward A. McDaniel, Vice-President
Secretary.
a'nd William J.
Hornn

vi„„

Prpcjripnt

and

Treas-

Horan> Vice-President and lreas
urer.

same

assets

Joins Foster & Marshall

per

(Special to The Financial Chronicle)

capital

PORTLAND,

.

the

4eU6(b

WASHINGTON, D. C.—Univer-

Robert R.

*

*

.

.

12

months.

Biggest
July

31

7.2%;

—

Incom'l^'onc/

Arthur

Clement has joined the staff of
Foster
&
Marshall,
Southwest

Prospectuses available from
your

holdings
at Sixth Avenue at Oak Street.
utilities and tele-

were

sl?el> 9-3%; oll>

transportation,
and electronic,
5 2%.

Largest

7%;

_

.

T„T

„^TT.

„

5.4%, and
FRANKLIN SQUARE, N. Y. —individual Niagara Investor Co., has opened

American Telephone and
Telegraph, International Harves-

branch office at 837 Hempstead
Turnpike under the direction of
Ralph Dolgoff.

a

Investment Dealer

EATON & HOWARD,

Niagara Inv. Branch

elec-

investments, at market, were U. S.
Steel,

Oreg.

g

industry

pli?5ie' ,1L6%;
banks

Lord, Abbett & Co.

Midland

Casualty.

Aluminum & Chemical 4x/8 % con-

trical

New York

land

latest

to

A

Marine

Allied Chemical,
Anaconda, Dictaphone, Equitable
Gas,
Illinois
Power,
Kaiser
quarter

increased

Fund

With Coburn Middlebrook

$11,000,000 of the increase.

Purchases

reported in July, 1958. The num¬
ber of
new
accumulation plans

Affiliated

earlnland A?

,

Co., 135 South La Salle
t
?

July,
the fund bought about $87,000,000

registered by Colonial Fund, Inc.
in its third quarter ended July 31,

Report
stocks of

common

2

t

_

liquidated during the month were
2,150 Columbia Broadcasting, 100

the

*

*

*

A record

$10.6

a common

Enterprise

of that fact.

aware

TLre & Rubbfr; 222

34%

share since the fund

started

was

were

share, on
represents a

$13.41

June

potential is
illustrated in
a
recent
issue
of
Aviation-Electronics
News, a
publication of Group Securities, Inc. and Aviation-Electronics1Electrical Equipment Shares. This issue is devoted to computers.
It explains just what computers, data-processing equipment and
idea

new

little

receivables.
*

jobv

good

and

In

ultimately be obtained
Often, what the game comes
down to is a day-to-day surveillance of such imponderables as
competitive break-throughs and military spending. It is a prodetermining how much profit
through technological developments.

was

stock,
10.5%
bonds,
8.7%
preferred stocks and 1.2%
net

emphasize growth, the problems such
a
valuable talking-point.
What the

present

«in

.

a

the^same as in Abbott Laboratories. Completely

year.

mon

"lone wolf" trader simply does not know is the sheer complexity

r

previous

changed over the course of the
year. The breakdown: 79.6% com¬

a

which

.S

tho

360 ner share,
per

Distribution of assets

great that they will be disappointed.
For

from

&

July, Street.

~

Sperry Rand or a Texas Instruments
the wrong reasons.
They obviously cannot stay on top
situation.
In a constantly changing market, the odds are
up

of

^°l
PiS f."

increased

On Aug. 4,
1959, the fund declared a distribu¬
tion of 110 per share from realized
portfolio gains.

feel they can better the record
they are not so diversified as the funds themselves. It is
risk business. Too frequently, these non-professional in-

high

month

Foundation Fund made

investment of 2,000 shares of
Westinghouse Electric, purchased
1,700 Standard Oil of New Jersey,

the

because

Vvestors wind

of share¬
17,600 to

number

the

—

.

Lewie

During
Income

to

stocks.

obviously

The

to

20,200

And a good
independent tradiing
of the mutual funds

has been toward growth
who choose to stick to

7,307,142

from

grew

holders

There qre, of course, as many different types of mutual funds
there are types of investors. Yet the big undercurrent of the

past

s

-

^

or V

Incorporated

24 Federal St., Boston 10, Mass.
□ BALANCED FUND

□ STOCK

FUND)

J.

Mama

^
Address

__

"X

22

The Commercial and Financial Chronicle

(846)

.

.

Thursday, August 27, 1959

.

late the

Changes in Key Factors in

Public Utility Securities
OWEN
ELY

BY

Continued from first -page

The

Quest for Profitable

r

Central Teleohone Co.,

bonds

with annual system revenues of over

operates telephone properties in Minnesota, Iowa and North
Carolina. It also controls tv/o telephone companies operating in

and

Virginia,

in Illinois and

one

indicated

in Wisconsin.

one

The system set-up

follows:

as

Telephone Co

to

with

times

talk

Central Tel.

$8,185,000

La Crosse

Illinois

Tel. of

l°w

yields

Telephone (Wisconsin)

1,964,000

-

4,027,000

Virginia Tel. & Tel.-—

Lexington Telephone (Vaj

393,000*

♦Tor

nine

$20,258,000

months

since

the

At

end

of

1958

two-thirds

consolidated

of

from

revenues

service.

toll

Toll

from

are

service

local

service

exchange

is

and

of

Dec.

by

provided

precision
total

the

T3,r

thi

finn

llpr

the

in

quest,

it

plication
or
can

a

of

price-earnings

by

average

does

its to I
18-to-l

an

level

the

is estimated around $10 million.

43%
9

Minority Interest
Common Stock Equity

jg.
•>'

32

As

build

indicated

up

to 7.5%

In North

the

table

its rate of return
of

$335,000

Carolina

half

revenues

15c

in

of

1959

per

company

was

and

in

$270,000.

increases
Iowa

and

became
are

effective

Sept.

Minnesota, which will
was

be

obtained

it

relatively

sale

of

its

small

West

telephone

holdings

in

three

states

by

Virginia'property for about $1.9 million.

company purchased 75% of the

common

Telephone Co. and additional amounts

stock of

were

later

At the recent over-counter

rective

actions

of

California Interstate
Telephone
California Water & Telephone

falling

Commonwealth Telephone
Intermountain Telephone

i>aU

_____

Rochester Telephone
Southwestern States Telephone

#

f

West
UnitedCoast Telephone
Utilities

shared

the

,r

Fear

'»

1958

to

Rev.

(Mill.)

Common Stock
Dividends

$1.80

$1.00

offers
that

in

d

n

^

nvlSn
AmerkaS
American

of

the

F301?0

rne

.

Beyond

fn^a.glFa ?n*
attracted

is

with

ex¬

advances.

look

to

2

are

sought in the bond market, in in¬

dustrials, in Governments, in

mu¬

nicipals.

Funds might even flow
in the direction of
short-term in¬
vestments
or
financial intermerpL

these

„

moves

Z°m*

% Earned

on

Net Property

6 7

1955

14.2

7 5

1.73

.84

21-14

6T

On

1952

9.9

1951

8.6

1950
1949....

7.5
6.2

1.31

.73

1948-—

53

i.n

.45

1.49

.82

13-14

5 9

1-46

.77

14-12

6.2

1.32

.73

12-19

5.6

1.11

.73

H- 9

51

1.04

.64

11-

49

1957.

both

American

of. capital abroad.
of

the above counts,
experience in the past

should be briefly referenced. This
is important because it must be

recognized that there is

of

expansion

Canadian corporations which
ve r?PV e y S°°d prospects for

appreClation of value
panding economy.
Risks
tvisKs

Minimized
Minimized

in

that

ex-

American market. The decade

to

in
m

degree of confidence that the

a

Prosperity

Canada

of

the

1920's

would

continiie unabated into the future.

foreign

portfolio

Americans

investment

minimized

are

put
of

their

savings

Canadian

by

cans had
vestment

almost tripled their in-

can

in
foreign
securities,
Whereas corporations held a large

securities

amount of the approximate $7 bil-

in

Ca-

nadian investment. Americans

into

lion worth (at par) of foreign seminimum
concern
if
they but curities by 1930, the Treasury Deexercise the
normal precautions partment Census (1943) estimated
corporations

with

with

investment.

Mar-

that

majority of non-Canadian

a

|fiously have to contend with rities other than those of Canada,
fluctuating values of

nitud£-

usually

^the seeking

.

tnat

The

risk
risk

nancidl

alone
alone

comnlicated

No

have

..

lies

in

security

■

bGliind

thG

lying

in

a

strong

that the general price level
wiil continue to advance. In

Loss

Iq
5!o

of

Confidence

assessment
of the reasons
light of fi-No assessment ot tne reasons
and
and need not for widespread loss of confidence
need not
the factor of
W1U be attempted.
It might be
a<?sessmenr

ot

tnp

reasons

„

.

bv

been minimized

historically.

Even financial risk need

fh

f

rnGn|ion

,

however

that

wortny ot mention, nowever, tnat

America had only recently beF^me,.a makr creditor nation at
^ time. American investment

be

little

greater than the similar risk

asso-

bankers probably should be held

companies

responsible for some of the short-

ciated

with

American

if reasonable

in

available.
can

comings of the dastardly expen-

en.^* A :1934 report of the Com-

While it is true that

uncover

Canadians,

there

disclosure

ex-

that

is taken to

care

plore the facts of

high speculations

it

is

also

true

that

mlftee of Banking and Currency
°,n, Bt°ck
Exchange Practices
stated:

American

"The record of the activities of

counterparts to such questionable
ventures for capital.

investment bankers in the flotation °f foreign securities is one

are

numerous

.

.

.

,

,

1

reasonable to question at

...

this phase of the American

mar-

of ket activity whether foreign port-

change in the

investment must be

as

serious mag-

Problems of repayment

may be chnsidered in

of the most scandalous chapters
in the history of investment bankjng
The sale of these foreign

folio

investment

opportunities

exist for American capital.

Can-

ada; in this regard, must be
cltid6Q

from

tages,

real

tliG

usual

ex-

_

issues

was

tices

and

characterized by pracabuses
which
were

violative

of the most elementary
principles of business ethics.

disadvan-

<£Far

from

GXGrcising discrimi*

prejudicial,
foreign portfolio

secu-

the

rities in this discussion. The

more

quately the information furnished
by foreign officials; ignored bad

accompany

than

one

or

that

billion dollars' worth of

nation in relations to these

bankers

failed

to

issues,

check

ade-

short, Canadian bonds
currently out- debt records and bad moral risks;
recent standing, together with the heavy disregarded political disturbances
might find its deepest root investments made
by Americans and upheavals* failed to examine
in the fear of
continued inflation, in Canadian
equities, attest the fact
economic conditions; failed to
If this
is
the case, it is
highly that Americans do not consider determine whether the
proposed
conceivable that the trend of ris- Canadian
securities as "foreign" uses of the
loan issues were
ing prices in the equity markets in the usual sense.
Neither can applied toward the
purposes
and
rising yields in the debt secu- direct investment abroad be conspecified in the loan contracts;
les.+ n}arke?: will continue. To sidered when foreign investment
generally indulged in pracput it into investor language, it opportunities for
individuals are tices of doubtful
propriety in the
might be concluded that investor discussed.
Direct investment by
promotion of foreign loans and in
sentiment favors minimization of American
corporations does con- the sale of foreign securities to
purchasing-power risk over min- stitute a large source of
funds the American public."
lmization of other risks inherent
for use in foreign economies. But
It would
be
unfair to assign
to security
ownership.
the American investor cannot iso- total
blame for
the

flight

to

equities in

years

.

'

of
the
was

not unlike the present one in that
great optimism existed that led

.

.

.

9

abid-

an

a 0f the 1920's, foreign nations and

.

;

G'

u

t

with

.

iHCtor

are

beiiet

? 6 2%

•'

01Les m0noy toJwo.rk a^ay

mve+stoFs
investor s must be aware S<f^d' opportuniof the
the many ties that exist for such profitable
investor's

r

one

common stock

22-18

ll-2

basic

two

ded nfkS associated with Put-

hi 2 lmg

^ have employment
dollars, m-

American

vel°Pment> and

are

Bargains

seeking of capital appreciation by

24-13

12.4

are

IruTts^ime^
corporations floated billions
J 'nS J IrnSoL whVnh dollar.s of their securities in

other than equities.

,

27-19

dividend in

Srowth
f

De complicated oy tne tactor ot

which

market

pilFes;

.91

stock

fta

t

o u

segments of the securities market

17.6

,

Requisites

v*A mert rarfdrec*uisites for Private foreign
capitalapprecfatfon The10 P°rtfol4? investment by AmeriSiance of low dln^tv of nonnkT ca?s. First, there must be profit
S
potential which carries an opporpai2tai
tunity commensurate with the

major currency-value fluctuation,
Problems of political
instability

investors

many

18.2

Approx. Range

Basic

aa

a

by.

price-earnings
that

17.6

1.00

^Adjusted for 10%

the

protection against a
overall
trend
line

Record"—

The

Obviously, there

a

ontimism

or

market

unassociated

associated

1.99

1953

>

annreciahle

earnings,
of

general

aianes.

2.00

.

longer offer

a

are

Again,

15.8

1954

.

no

special situation, which
potentials to the investor

pected

18.2

i

r

of

^o^eUmes

w in(?ul aPPreciaoie

^

;

;

for

now

advance

are

without

•

Sometimes

the

1956—_

r

thp

only moderate-

can

widens

The

1957—_
?■

rearhp<?

secondary or terfor gains that

as

investor

sought is

20.7
16.7

Earned

$20.3

,

It is interesting to note that the From the beginning of the decade
by usual problems associated with of the twenties to the end, Ameri-

sought

are

gap.

TELEPHONE COMPANY

'

„

u

the

^

general

Issues that

recognized
CENTRAL

.

the

consider

and

that

24.8

%

have

in

continuation

14.1

Florida Telephone

securities of

non-Canadian

stock

common

-

^u

£

and

issuers.

American and Canadian dollar is States were debt obligations, the
free and is subject dismal record of the 1930's left
to reSular and accurate quotation. American investors with a legacy
Purchasing-power risk does not of lost- confidence in foreign secu-

U
increases

15.3

%.>

the

opportunities for Amer-

are

non-American

ties.- Convertibility between the eign securities held in the United

the

14.5

)

ican investors in the

a

cor¬

TonTnfafkef'oTer^nt'vea^

of

at

witnessed

orimarv issues

Lexington (Va.)
acquired.

; r-

there

such

likely that
might take

seeems

isTogicai to feeTthal

tiary

price around 25V2 the stock yields
and sells at 13.6 times consolidated
earnings. This priceearnings ratio is low as compared with some other ratios of
inde¬
pendent telephone companies, as follows:

.

look

market

time, it

referred

3.9%

}

optimism

segments

grade bond yields
chip stock yields and see
major
market
"adjust¬

a

prices

streamlining its present holdings. In July 1958
completed the last step in its program of
disposing of all of

the

ownership of portfolio
by corporations

issued

ketability and taxability assume securities were held by individminor proportions in such securi- uals. And while most of the for-

ly

advantageously,

and has also been

the

securities

associated

that

increase

equivalent to about

$1.37 per share for the 12 months ended March 31,1959.
The company is
continuing to acquire new properties where
can

to

ent

traditionally

the latter about

and

the

the market must contain numbers

were

suitably located

to

high

a

some

outstanding compared with $1.80 for calendar 1958.
The present dividend rate is
$1, the paying being relatively
low compared with consolidated
earnings per share; the company's
policy is to relate the payments to parent company earnings
only,

are

Such

Others

heights it has

1,

then

these

have

When

to

12c. These increases
have helped to improve share earnings which for the 12 months
ended March 31 increased to
$1.88 on the larger number of shares

which

he

Secondary and Tertiary Issues
able

1958
being made effective in the

The former amount

price
price

ment" in the months ahead.

100%

net

on

annum

share after taxes and

a

the

below,

*

property from 4.6% in 1949
in 1956, but earnings then receded to 6.2% in 1958. Rate

increases
first

100%

ot
of

many

market

of

only

♦

Total

in

market.

and blue

9

48

990.

exist

over

8

__

ratio

the level of earnings and/or divi¬
dends. They view the curve cross¬

51%

Preferred Stocks

subiected

were

highs"of the^"rkefunjustified

Consolidated

Long-Term Debt__

«j

V

of

present

,1

comparison

If, for instance,'
power of
the 30

earning

together with property acquisitions, approximated
$13 million compared with $16 million in 1957; the 1959 amount

Company

does

of foreign exchange or
0f the other problems inher-

ratio

low indeed.

tures last year,

a

Neither

problem
any

cgnst^ctkn3' Re^nt ySrfhave Lng fear ^ fore^n. securities that
yield supposition, an
average-^eSsed the org^
deprov/de f basi? Pfejudice in
be projected that makes tothe marketplace.
In the decade

$55

to
to

ment.

impor-

111

and

earnings, the Dow would climb to

of Dec. 31, 1958 was as follows:

aggregate

vestment bonds have beckoned
SfiPtiH navmpStQ nf !flV
millions of American dollars for
Dow-Jones average
one
two
or
the PurPQse- ^channeling investvears hence
and bv the'an- ™?nt 1.nto °PP°rtunity areas like

stocks in question

as

and

power

o" repres™ntafive

.1

,

degree of

some

earning

1958, over 85% of system phones were dialautomatic compared with 78% in the previous year. This compares
favorably with other systems—General Telephone's telephones
were 88% dial-operated as of July 1, 1959.
Construction expendi¬

System capitalization

available

every

with

dWidend

seem

31,

of

use

to determine

day's

with the Bell System and with other independents.
As

deed

tool at their command-attempted

the

system's stations were over 245,000
compared with 234,000 in the previous year, 136,000 in 1950 and
88,000 in 1945. Thus, with new acquisitions combined with regular
growth, the system has almost tripled in size during the postwar
period.
Recent acquisitions were the Minnesota properties of
Southeastern Telephone, serving 11,600 telephones, purchased for
$1,900,000 in October 1957; and 75% of the common stock of
Lexington Telephone in April 1958, adding 6,536 telephones. About
one-third

of extrapolation, analysis,
correlation, and projection — in-

means

acquisition.

Principal cities served by the system include Asheboro,
Leaksville, North Wilkesboro and Mount Airy, North Carolina;
Charlottesville, Front Royal and Lexington, Virginia; LaCrosse,
Wisconsin; Fort Dodge, Iowa, and Des Plaines, Park Ridge, Pekin,
Havana and Savanna, Illinois.

)

to

made

riods
Total

that have overseas branches, subsidiaries,or other forms of in vest-

by

assumes

tance

.

been

dends into future operating peof
leading industries and
corporations.
Analysts have, by

*

and

prices

equities,

on

communica¬

lu.
introduce methodology o£ projection of earning power and divi-

92

.

will seek potentially more lucra- chartered outside the United
of tlve outlets for their funds.
If states. The
question is whether
current
income

form

have

of securities of companies

Outlets

u

some-

may

Attempts

.

peeled phenomenon that investors

market situation.

65%
51
80

5,689,000

.

that is character-

ized by high security

,

Middle States

..

.

in

What

such

in

i

IJ a "IFv:

the future

impression

the
tne

gives

double

.

The investor can, of
course, direct
or refrain from the
pur-

funds to

the
measurement furnished by other
time periods, it is rather an ex-

let-

another

one

investors.

for

an

of the

Market

their appraisals of what

holds

in

forecasts

each.

of

conflict

ters

studied

and

project

movements

stocks

be considered to be a
hedge in attempts to appraise ef¬
fectively an extremely delicate

Owned by
Revenues

effort

chip

blue

of

watched

are

tions

% of Stock

Central

and

_

$20 million, ranks about fourth or fifth among the telephone
holding companies. It is controlled by Central Electric & Gas Co.
which owns 54.5% of the common stock. Central Telephone owns

is

by
private
American
corporations from that portion of
capital that is employed at home.

Foreign Equity Investment

Central Telephone Company

outside-United States in¬

vestment

.

.

.

.

foreign-issue fail-

..

I




,

V

,rp:

' " f. .J

i. ft':i

:i ■

;<•

Volume

190

Number 5876

..

The Commercial and Financial Chronicle

.

to investment bankers and

ures

a

the
widespread economic crisis of the
1930's played a major role in security defaults.
Rigidity of both
gullible

public.

interest

and

in

Certainly

sinking

fund

pay-

decline in dollar earnings in world
trade, combined to accelerate dements,
,

the

-

faults.

The

of

presence

-

_

United

a

Com-

States

Department indicated that

merce

many foreign nations had adjusted
to the foreign income and spend-

need

for
the
underdeveloped
of the world to import capital for the purpose of diverting a
greater part of their productivity
to capital formation. The complethe
mentary objectives provide +Vl"
basis for international investment,
'
From viewing the American balance
of international payments
account it is quite obvious that the
limitation to the flow of investareas

ment abroad does not lie in inability from lack of funds. It is

international obvious, too, that the opportunity
debt structure of the $7.3 billion factor is not a deterrent to such
supply of income area. There was flow. The answer to the dilemma
a
precipitious decline of dollar lies in the improvement of investsupply to foreign nations of some ment climate abroad and in the
$5 billion (or 68%) over a three- attitude of American private inyear
period beginning in 1929. vestors
toward
availing
theming

habit

This
to

the

and

situation
the

as

the

During

referred

been

"dollar shortage"

continue

to

was

has

to

which
years,

many

decade

the 1920's
foreign

of

the total dollar volume of

of

selves

(847)

market

and
to
the productive
might that the existence of such
a market permits. The gross product of this nation has allowed for
a

Common

to

*
+;—
formation,

capital

world has
mation

the

the

economic

ECM
base

The for-

should

for

form

American

market-

a

ties in various

functional

It

likely

the

market

common

in

heights

new

that

such

market

a

diminished

about

to

$3.8 billion at the end of the dec¬
1930's and to less than

ade of the

$2.5 billion by

1953.

show specific dol¬

Attempts to
losses

will

be

not

American

to

investors

It is fair
to conclude that
the experience
at portfolio investment in foreign
securities
(heavily bonds)
by
necessary.

Americans

was

rather

a

fW*/"V H T /A W1

The

f

\

V\ T

improvement

climate

must

investment.
1

11 <r T

(ITWl

totality

a

costly

will probably

be

of the improved conditions rather
than

causal

a

It

right.

is

factor

in
hi

that

truism

a

its

uwn
own

us

at

mention

Brief

be made

should

abnormalities of trade and

the

present time the potential volume
of

the

and

postwar years,
from about 1930 through the pres¬
ent. A rather complete disruption
of trade in the depression years
has
previously been mentioned.
American imports dropped sharply after 1929 and selling abroad
war

became

progressively

ficult.

Tariff

exchange

dif-

more

barriers

mounted;

controls

grew;
various
barriers to trade became common;
defaults

international

on

obliga-

—

~

.

SSL'"KSLESS?"1Pi;CeLl°„nii:
dene.
deteriorated.

turn

the

of

trade

and

ally,

the

formed

great

recogni-

In

imbalances

in

internation¬
community of nations
payment

the

International

%

Bretton
xiieituil
1944.

ing

as

Woods
VV UUUt>

the

of

result

a

Q

"

1

velopment

in

Conference

Hi

is

conducive

to

a

means

in

account

through which imnation's
trading
be met without

interference

with

nation's

that

level of imports or its home mone¬

PL

tary policy. The Bank
ized

was organreconstruction of

finance

to

facilities and to increase productivity
in underdeveloped areas of the
world.
As a supplier of capital,
productive

war-destroyed

the Bank is limited to loans which

guaranteed

are

of

ment

the

the

by

governIn 1956,

borrower.

the Bank organized a corporate
affiliate,
the
International
Finance
Corporation, for the purpose of extending credit directly
to private enterprise.
These organizations can be expected to
grow
in importance as interna-

tional

economic

affairs

become

pre

They are not intended—or will
they probably ever be—to be substitutions for private capital flow
upon
the
of
pay-

among
nations, based
international
balances
ment.

They

are,

rather, comple-

agei^cies to bring about
of the

fulfillment

lization

of

commerce

optimum

funds

hind

private

unon
"

the

(

nation

to

international

and investment.

economic

The

in

uti-

justification

capital

need
p

of

flow

the
p

be-

rests

inv^Hne

ta

e

e.

i-

ployment the excess funds earned
m

international

trade

and




the

The "trend

abound.

ties

In

tury
rii

189?>

in

total

bv

this

and Britain

As

brought out early in this
discussion, Investment prospects
7

*

must be such

in

tential

*•

to offer gains poincome and capital apas

Interest

preciation, both of which are compatible with the risk involved in
foreign investment.
There is apparently a growing belief among

companies

fn these

ahead.

American

portfolio,

capital

can

'

the

on

invest¬
At-

there is
currently non-

There have been good

iMTTAftAVfi

Attention

-recent

in

hntTA

nATTO/i

years.
T

ll

/1W1

is

here

called

these

to

...

opportunities that have grown
^

„

as

„

»

resHlt: of cha?ging economic factors in recent times?

Conditions

Ripe for Action

it is believed that

summary,

..

!£13££l

of

This

is

productivity

a

nrriuumonf

where

case
in

bring.

can

recent

ulimatA

ic

nf

im-

errAof

"an interna!

tumtiesibroad. From an internal
make

home

opportunities

abroad sought after by discerning

AmenvJ fr

American in-

™sPt°r
Last

the

European Common Market brought together the
peoples of six nations, the comyear

presented
themselves.
European Common—Market wummuu

transfers remains
jn the future.

a

question mark

underdeveloped areas
js

a

01

Luxembourg, West Ger- portfolio division of investment
France, and Italy—aim to for American capital,
remove gradually, within approxi-q0
r
facfors 0f the present
mately 15 years, barriers to the situation" stand in the
way of the
free movements of goods, capital, expansi0n of portfolio investment

and people. This may be viewed in the years ahead? Beyond the
major step toward economic fact0rs
that
have
traditionally
unity in Western Europe.
Such constituted deterrents, knowledge
economic unity must, of necessity, of
opportunities appears to be the
precede political unity, which, due
principal problem at the present.
to national rivalries of centuries, 0f the usual deterrents several.
will be very slow in evolving. The
might be listed: lack of recognieconomic unity is highly signifi- |ion of
pr0perty rights of forcant, however; the area is responeigners- political insiab'lity
unas a

^United &

can

reason-

ably be expected from the ECM.
As
well, inter-country markets
for and

greatly

by ECM countries will be
expanded.

It

is

The probremains one of
portfolio invest-

relative trade freedom.
iem

0f knowledge

note

great

Investment

ment.
herit

for

a

great

bankers

responsibility in

carefully all situations
likely that, with the reduction of ^hat present opportunities for
tariffs and other trade harriers, American
capital.
Channeling of
the factor of competition vvill be American
funds
to
diversified
subjected
to
intensity.
As
has equity opportunities abroad right
com-

gr0\v

has

often

economic

been

combination

of

greatness

attributed
mass

to

the

potential

2
10

1

"M

J

'

major

/II

"R

'

barrier

"1

to\ the

capital to portfolio

acquisi-

13th

Golf

Tourna¬

dustrial and railroad

companies of
country, will be held on Sept,
1959 at the Colonia Country
Club, Colonia, New Jersey.
It
is
expected
that
approximately 50 members and an addi-

the

24,

_

11,

50

will

guests

as
events.
In

the

attend

the

Committee

are*

L

s

American

t

wy'j.

.

States

Entertainment
Hincienlan^

T

Bank'

Corooration*

Steel

Note

United

McDermott,

Secretary, Radio Corpora¬

tion of America; A. Smith, Texaco

Inc.,

and

M.

F. Kane,
(N. J.).

Oil Company

Standard

.

CHICAGO, 111.—The firm name
of

Eldredge,
uiui tugc,

Tallman &
xauuiau

with

the

Bond

_

Condon, Inc., will again be hosts

at

informal

an

Welty's

from

8

to

breakfast-brunch

Restaurant
10:30

10th
done

a.m.

consecutive

Sept.

This

10
the

is

so.

they have

year

Member fee is ten

dollars; non¬
fee,
twenty
dollars; guest fee, forty dollars.
W. N. Murray, Jr., The Illinois
Co., is general Chairman of the
Field Day Committee, assisted by

resident

member

Carl H. Oilman, Dean Witter &
Co., Vice-Chairman.
» v

committee members

are:

Bank.

Arrangements Committee: Gene
Frantz, Frantz Hutchinson &
Co., Chairman; P. Alden Bergquist, First National Bank of Chi¬
cago; Frank B. Hutchinson, Frantz

A.

Hutchinson

& Co.; John X. Ken¬
White, Weld & Co.; John
Kramer, Harriman Ripley &

nedy,

H.

Co., Inc.; Vincent Newman, Allan
B*air&
Committee:

Robert

L.

Nelson, Weeden & Co., Chairman;
William
H.
Hamrnond.,
Braun,
Bos worth & Co., Inc.; Thomas E.

Leafstrand, Blyth & Co., Inc.
Entertainment Committee: John

N. Faust, Kidder, Peabody & Co.,
Chairman; Kenneth L. Eaton, A.
rfiairrr,Qr>* K"pnnottl T
a
C.

Allyn and Co., Inc.
Special event: Blair A. Phillips,
Shearson, Hammill & Co., Chair¬
man;
Harold W. Abele, L. F.
Rothschild

&
Co.; J. Kenneth
Goldman, Sachs & Co.;
Robert C. Hawley, Harris Trust
& Savings Bank; Clarke J. Rob¬
ertson, Farwell, Chapman & Co.;
Robert
E.
Simond, Jr., Halsey,

Clauson,

Now Charles Eldredge Co.
vrx

bridge and other

as

C ub Field Day> Kenneth Eaton,
4' C; ^ilyn and Co*' Inc*> and
<LosePh Condon of McDougal &

L

R

Mulkeen, Transfer Agent, Wabash
Railroad Company; J. E. Murray,
Transfer Agent, The New Jersey
sistant

well

conjunction

Golf
of

Co

full day is scheduled at the

a

shoes,

affair.
Members

Thursday

Reception Committee: Elmore
Song,
Goldman
Sachs
& " Co.,
Chairman; William J. Corbett, Jr.,
Burns, Corbett & Pickard; Hardin
H. Hawes, Harris Trust &
Savings

Outing of the CorporateTransfer Agents Association, rep¬
resented by many or the large in¬

tional

a

Chicago
evening

Elmhurst
E1™iurst Country Club featuring
Country Club featuring
golf, tennis, baseball and horse¬
iia«*ii«ii

Other

Annual

the

at

noon

Club.

cocktails and dinner will be held
at the University Club. On
Sept.

Co.,

231

Stuart & Co., Inc.

$25

Co.

Goffe Carkener Office
BELLEVILLE,

Kans.

Goffe

—

&

Carkener, Inc., have opened a
branch office at 1317 Eighteenth
Street

under

the

direction

of

Bank, Chairman; Charles O. Main,
Ballman & Main; Roland C. White,
Harris Trust & Savings Bank.
Transportation Committee;
Charles

Lee

Baseball

James W. Lawrence.

Form Associated! Sees.
Associated Securities has been
formed with offices at 545 Fifth
Avenue, ----New York City, to en¬
gage
in
a
securities
business.
Partners
are
Sybil Olman and
_

_

million

shares to

public

by

worth

of

equity

the American investing

Eurofund,

?

Lundfelt,

_

Chauncey S. Olman. Both are
ficers of Fifth Securities, Inc.

of-

Committee:

National Bank & Trust Co,
Tennis

at

the

First
National
Bank,
Chairman; George D. Smith II,

Kennedy, part-

Blair, Halsey, Stuart & Co.,
Inc., Chairman; Frank E. Hansen,
Halsey, Stuart & Co., Inc.

uny, passea away Aug. 1/
age

of 57.

With Lon L. Grier
(Special to The Financial Chronicle)

George J. McLiney

MILWAUKEE, Wis.

George J. McLiney passed away
Aug. 18 at the age of 54. Mr. Mc-

Vice-President
and
the municipal department for George K. Baum Cornpany of Kansas City.
was

manager of

tLLLL
with

MIAMI, Fla.

—

Co., has opened

Dewey, Johnson
a

branch office
,

,,

in the Ainsley Building under the

Jjropean direction of Josef Morson.

Lon

North

L.

Water

aqqociated

become
Grier

Alice G.

—

h»<T h/Lnmi*

has

Bart<)n

&

associated
Co.,

735

Street,

Walston Adds to Staff
(Special to The Financial Chronicle)

Dewey: Johnson Branches
&

Savings Bank.
Hugh

Committee:

W.

,

Liney

A.

James

Committee:

Hurley,

Horseshoes

William Walker

G.

James

Brophy, Blyth & Co., Inc., Chair¬
man; Andrew D. Buchan, Bacon,
Whipple & Co.; Robert L. Meyers,
Stone & Webster Securities Corp.;
William A. Noonan, Jr., Illinois

Harris Trust &

William Kennedy

McCormick &
G. Field,

Chairman; Arthur
Higginson Corp.

Co.,

through the employment of

Petitipn should result in a heal- the investment trust method. An
thier mass mark^ than has ever example of thh has recently
been enjoyed on the Contir-ect
presented itself in the offering of
America's

_J

Transfer Agents to
Hold Golf Tourney

inex-

highly amining

been true in America, such

provide
dis¬

to

promote

^ abi"°ad'

factor of opportunity for-for-

gium,

expansion m mar-

By either method,

increase in flow of private Ameri-

the world

many,

A huge

m

today's

can

luncheon at
Yacht

at
as

The development of

eign
investment
funds.
The
lar to that of the United States, growth of direct investment carThese nations—Netherlands, Bel- ries with it opportunities in the

States.

Ray

Prize
Committee:
Charles
A.
has been referred to. The Ameri- South La Salle Street, has been
can
attitude
toward
—
a unilateral changed to Charles H. Eldredge & Schoeneberger, National Boulevard
-u

bined population of which is simi-

kets in the Continent

,

is

recently
The

of offering such securiAmerican markets or

the

Zinc Company; LESteiner, As-

viewpoint stock prices and yields
at

in

The

g** in" th^'profhs "p'otential ?he im'estom. From an exiernal view
point several factor changes have
surge

,

l929

abroad.

areas

should profit greatly from such an
economic expansion in the years

uncovered

cial operatives. It is the contention here that lack of knowledge

dollar

bv

focused

nor

new

?f a. great economic resurgence.

Zeading

:

Many investors have seized them.

In

issues

closure rests with American finan-

opportunities

to

opportunities

investors that Western Europe and
^—t—x
Great Britain are in early stages

is

or

opportunities

nvttr

Be-

bankers

ment and

here

existep^.
I*/I

both

investment

eign securities.

to

SHU
non-direct,

was

of

institutions.

the
responsibility
knowledge and to

eonntrv

biflion

Europe tention
neither

Western

as

agent for, direct purchases of for-

As

traced

be

the

investment

f

will

calling attention to, and acting

&

can

Chicago Municipal

fine opportunity to under-

a

the form

about the turn of the present cen-

ment

Opportunities

a

might

abroad

tyne"8

an

increase in such investment.

The Fund aimed at provid-

balances

jnvestment

try.

future

by their
research in foreign securities especially equities.
This can take

capital

it is near the $37 billion mark.
that

climate

Mone-

tary_ Fund1 and the International

for

the

J

private investor flow is great.

payments in the depression years
and

Opportunities
-

factor

a

econ-

"

o?^meSa^privSe^n-

attitude
vestors

tunity in the modern world

world,
geographic,

large funds

this,

write

Now where js America's oppor-

omv?

that

the

as

bring this wealthy area of Europe yond
might be the basis for other com- have

has been true since World War II,
the increases in American invest-

rS
men/b^ind?vfduals°rei^n inVeSt"
of the

/in T

investment

of

represent

«LoC+wn?iL™
?w■lifaVio rSSSSS/i f

Costly Experience
lar

portfolio

of the

and

individuals and

portfolio

m

opportuni-

increase in this method of

an

well

can

opportunities mon markets elsewhere in the
in the private sector in foreign world, and, ultimately, to a world
securities. Although it is highly free from burdensome barriers to
probable that direct investment the flow of goods and capital.
will comprise an ever-increasing
The
economically underdevel-

crease

invest-

investment to attract the small

purchased by Ameri¬ portion of the flow of total invest- 0ped areas of the world offer
cans is not precisely known,
al¬ ment, as governmental transfers great demands for the capital of
though estimates vary between of both military and economic nations
which
find
that
their
$10 and $15 billion.
The portfolio variety will probably tend to de- economies
permit
an
outward
crease
in the years ahead, there flow.
investment
by
Americans
had
stood
at
around
$7.2 billion in is still ci large potential for inand

is

see

output and
The economic

standard of living.
success

to

economic

to

areas

both

could lead the nations that make

securities

1930

capital

ing and productive expansion that
up

promoted

headed

o

living the

known.

ever

of

fund

American

bankers

Club Field

even

in the presence of a consumption
rate that has led this nation to
the highest standard of

large

three

by Glore,
Forgan & Co., of New York. The
portfolio holdings of this organ..
ization and ^
the results of its oper- «
?
ations will be closely watched by t;ona Vlub ° A K0
?
American
investors.
One
might lts,
annual field day Sept.
reasonably expect other invest^^11^^^'On SepfT 10
there will be
ment trusts to be formed to direct

good share of income to be alio-

cated

Market

by

ment

23

MILWAUKEE,

Wis.

R. Whitfield is now

&

Co.,

Avenue.

Inc.,
.<

210

—

Arthur

with Walston

East Wisconsin

*

24

The Commercial and Financial Chronicle

(848)

For

Dispelling Some Popular

of apartments

Illusions About Inflation
and fiscal

Continued from first page

savings and dis¬
investment process,

of

erosion

-with

tortions of the

international accounts. All
have now cured their prob¬

three

effectuating that cure

lems, and in
in

each

other
decisive
actions
to
fiscal and monetary

measures,

its

rectify

took,

turn

among

position.

examine
four aspects of inflation in

these

greater

and to trace in

sequence

they

how

detail

to

worthwhile

is

It

growth.

menace

Economic Instability

—

Accented

regard to the phenomenon
inflation-accented instability,

With

of

there is only one

respect, I think,

regular recurrence
of boom and slump can be alleged
to
contribute to growth. In the
the

which

in

language of Challenge
it might be argued
that inefficient management and
weak leadership are screened out
Toynbee

and Response,

during slumps, which thus act as

catalyst that clears the way for
enterprise and
growth. On all
other grounds, the recurrent se¬

a

of boom and slump is ad¬
to growth. First, because it

quence
verse

the

diminishes

economic

average

second,

and,

product

of

society,

because

it

increases

risk

the

of

enterprise.
Now, I do not want to be mis¬
understood. I am not saying that

instability

business

all

caused

is

Capital

growth

retard

inflation

of

impair the quality
investment de¬
cisions and thus promote the misbecause

of

they

management

allocation

re¬

a

growth

of

quirement

It is

capital.

of

that

investment decisions be such as to
economize

the

on

existing

structures.

of

efficiency

technical

pro¬

a

in such countries for

common

significant fraction of local sav¬

ings to

in

vested

to be in¬

abroad

be sent

stable

more

currencies.

both counts, the country
where they were earned is de¬
prived of the stimulus to growth
Thus,

that

on

would

effective

more

resulted

have

allocation

from

of

a

new

investment.

Any

and

growth

less

dollar

per

of

investment.

and

prices

do

development.

during

rates

relative

same

of

savings

investment

against

hedges

from

away

and

inflation.

into

Thus,

individual costs they distort the basic processes of
not move at the saving and investment. Involved

specific,

be

vestment

productive

Inflation is such a
To

a

in these

responses

further

are

ex¬

period of inflation but exhibit a amples of misallocations of capital,
varying
behavior.
Some
spurt but the focus of the discussion
while others lag. In such a period, here is directed to various finan¬
therefore, it is much more diffi¬ cial forms that saving and invest¬
cult for management to judge ac¬ ment take.
We will deal with
curately
tive

differing

of

than

techniques

future savings reactions first.

the

between

as

efficiencies

it

produc¬

in

is

saving
in
volume
adequate
to
period of more stable cost re¬
finance
(1)
the introduction of
lationships. A comparison of the
technical
improvements
in
the
relative in-put costs in
current
process
of production,
and
(2)
dollars
of
two
different
tech¬
the necessary expansion of pro¬
niques will not necessarily
ductive capacity required to keep
provide an accurate clue to the
up with population growth.
Re¬
relative costs that will prevail in
cently about three-fifths of our
the
future
when
the technical
savings have
been supplied by

is

v

form

Inflation

undermines

quickens the tempo of instability
primarily
because
it promotes
overspeculation in inventories. In
addition, however, it provides in¬
centives for premature additions
to
plant capacity. Businessmen,
expecting costs and prices to rise,
are almost forced
in self-protec¬
tion

lay up inventories in ad¬

to

If

vance.

let

anyone

him

merely

questions this,
check the pro¬

nouncements of the Association of

Purchasing Agents who regularly
advise

acceleration of advance

an

of

inflation estimates of relative future costs. cial
sustainability
and Should engineers design to use
of

fear

or

purchases of fixed finan¬

claims, i.e., such financial
assets as life insurance policies,
pre-stressed concrete or steel for
savings deposits, shares in... sav¬
a projected bridge? In the case of
ings and loan associations, pension
certain electrical products, should
policies, both public and private,
they design for aluminum or cop¬
and U. S. Savings Bonds.
per?
The answer will depend on
When
savings are invested in
estimates of the "future costs of

each

these

of

pairs

of materials,

responded
with markedly different lags to
inflationary pressures.
A similar
which in the past have

hazard

arises

in

all

cases

where

subject to very
rapid improvement. In these cases,
when a margin of excess capacity
is maintained to safeguard against
rising capital costs, the industries
concerned
may
find themselves
techniques

are

assets such

rectly
the

purchasing

lar.

There

that

is

savers

be

alert

savings

indicate

evidence

beguri to
Consumer

now

this

fact.

form

that

di¬
in

of the dol¬

abundant

money

are

erosion

an

power

have

in

in

by

large, but there

very

to

these, they

as

affected

are

still

are

portents

consumers

are

need when
beginning to take account of the
expected to increase.
potential effects of inflation in
The same type of incentive en¬
their savings and investment deci¬
courages premature
additions to in no position to take advantage
The proportion of income
of more advanced productive tech¬ sions.
industrial
capacity. Under con¬
ditions of expected inflation, it niques that become available be¬ saved, for example, has been lower
in the period since 1951 than in
cause
of technical breakthroughs.
appears profitable to continue jn
the
1920s.
Concurrently,
the
this process up to the point where These are only examples of misallocations of capital that are in¬ willingness of consumers to in¬
the current volume of inventories
They are in cur debt has apparently increased.
in hand and on order, plus the duced by inflation.
increased
capacity
to
produce addition to excessive inventories Savings that are made are being
invested
increasingly in the soeven
more
inventories, threaten and excess plant capacity dis¬
called
hedges
against
inflation,
to saturate the market. Then capi¬ cussed above.
inventory

covering

prices

are

appraise statis¬ such as common stocks and real
Despite
tory accumulation is succeeded by tically the amount of misallocation estate, urban and rural.
the
difficulties
of
agriculture,
decumulation, and we have the that may take place in any given
period of inflation, but there is no prices of farm land continue to
phenomena of idle plant and idle
question that it is a hazard which rise very rapidly — by 8% last
manpower.
This
recurrent
process
obvi¬ tends to diminish the potential year. There are many other fac¬
tal expansion slackens arid inven¬

ously

impairs

cause

it

employment

to

of

be¬

productivity

un¬

One indication is

and,
unemploy¬

the

ment thus created exerts
ary

repercussions

G.N. P.

on

second¬

total output.

figures show clearly that

inventory

recumulation

was

the

major factor in each of the three

tors

besides inflation that have in¬
investment.
slowing down fluenced these developments, but
it is clear from the way consum¬
in
rates
of
growth in a period
when new investment is
active. ers act that they have become in¬
For
example,
misallocation
of creasingly aware that they con¬

first,

resources,

because

second,

It is difficult to

recurrent

growth,

leads

capital

of

new
a

certainly present in
this country in 1956 and 1957 and
helped to set the stage for the re¬
cession

spring

was

last

of

By

year.

the

late

19&7, the existence

of

of

unused

slumps

we

have experienced since

the war—in 1948-49,
in 1957-58. In

each,

accumulation

of

place in

had

porary

off

atmosphere of

an

each

recession,

decumulation

pmnarily by

automobile

lustrates

a

partly to
as

well

our

as

can

tem¬

how

built-in stabi¬

flexible monetary




a

miscalculation

of

period of rising prices

result

in

misallocation

of

In

countries

Latin
to

where

such

as

inflation

some

is

countries

America, it is not diffi¬

observe

the

extreme

and

obvious forms such misallocations
can

they

sider investment in these

assets
One
of

take

or

operate

to

to

fail

to

retard

see

how

growth.

types of

hedges against inflation:

as

effect

savings

of

is

these

curing the life of
fect

interest

diversions

increase

to

statistics

our

finance,

figures

good

have

we

issues

new

on

stocks has rr.ade available to

porations
plant

to finance

ment

of

and

the

to

example,
the

such

be

than
in

way

as

to

pro¬
ap¬

greater, for
would be if

they

investor

same

savings

a

These chances
much

had

financial

placed his

assets

with

One cannot

be certain

just how great this dis¬
sipation
is, but it is evidently
large. It can only be estimated

indirectly.
It is very difficult, for example,
to discover that a corresponding
amount

of

growth

specific

corporation

a

2%

on

would

investment

under

cor¬

These

amounts, however, are very- much

its liquid
imply
an

has

been

fi¬

of

return

1%.

investment
dollars.

have

sumers

chase of

funds

devoted

con¬

the

pur¬

to

They do
greatly differ from the known

not

increases

in

the

investors.

In

in

constant

period of price stability,

a

investment

an

return of

corporation's

portfolios

equity

institutional

return

The relevant calculation is sim¬

ple.

stocks.

common

yield

The

liquid

2%

assets

after-tax

an

net

on

a

would

of

just

under

pened to the additional large vol¬

case,

1%. It would not, in this
be necessary to set anything
aside to compensate for erosion

of funds diverted to the pur¬

ume

chase

of

stocks

common

in

in¬

by

the

purchasing

the

of

power

dollars

invested in liquid assets.
period of creeping inflation—
at, say a 3% annual rate—on the

dividual investors in recent years.
In major part, it is clear that

In

these acts of commitment did not

a

other

hand,

plant and equipment, i.e., they did
not finance additions to growth.

would

have

rate

would

The

vide

an

in

result

increased

funds

the

received

absorbed

by

increase

in

in

sellers

were

in

of

probably,

interest

be

8%

rate

since

that

be necessary to pro¬
after-tax yield to the cor¬

poration

of

of

4%,

or

3%, would be needed

to

was

consumption

the
to

quarters,

appar¬

variety

a

Important,

ways.
an

investment

securities

same

ently

maintain

fourth,

of which

the

real

three-

purchasing

the investment and

power of

fi¬

one-

about 1%, would be
left to represent the net after-tax

nanced by capital

gains. This same
type of dissipation of savings can
and
does
take
place, of course,
capital

traded.

is

no

stocks.

common

have

assets

or

investment return.
To
give another example,
creeping inflation is expected

are

It

go on at

well

may

just as pronounced in
the market for real estate. It does

pation

assets

however, that such dissi¬
bulk large when
either

estate

in

change

stocks

hands

expense

large
generated
in

direct

consequence
of the
of equities and other
hedges against inflation then is
not only a reduction in the supply
of savings available for lending

but also a dissipa¬
the savings so di¬

profitable has proved all too fre¬

quently
6%.
of

on
the availability
of borrowed
funds, including investment in in¬
dustries
of
very
rapid
growth
whose aggregate claim
on
bor¬

funds

rently,

the

tion

the

has

is

large.
expectation

the

effect

aggregate

able

funds.

tional

of

demand

for

funds

much

higher

borrowers

who

in

are

to take interest costs
duction

from

loan¬

have

what

interest, i.

addi¬

their

to

the

acquire increased inventories or
to anticipate plant construction. It
appears profitable in a period of
expected inflation to operate on

is
e.,

actually
known

if

one

using

that

borrowed

benefited
negative

as

compares

payments for

economies

that

the

rowing

interest

with

accrued

from

to

pur¬

money

interest

cost

Under

short, inflation and the ex¬
pectation of inflation generate a
process in which the demand for
funds

the

of

tinuous
and

acceleration
same

toward

leading

higher

to

established.

tends to persist.

interest
This

profitability of

a

This

rates
move

inseparably

terest rates.

indication
ful

to

just

have

yield."
to

will

heard

It

compare

remain

on

the

is

the

the current
est

the

This
be

are

to

returns

alternative

an

due.

of

mone¬

easing of credit restraint would
result in higher prices rather

than lower interest rates.
Once
tion

compare

expectation

restrictive

soon

inflation

becomes

public has
ence

able,

a

created.

-

which

inflation
I

its

had

time

and

expecta¬
and the
experi¬
the

protective expedients avail¬

running disequilibrium is
On the one hand, an in¬

creased
funds

or

prevalent,

to become familiar with

many

same

an

of

policies.
That is why they
state that under today's conditions

type of analysis can
applied to indicate how power¬

fully

product

tary

They permit an
the relative
merits, for example, of alternate
investments in
fully taxable
Treasury or corporate bonds with
investment in tax-exempt munic¬
ipals.
as

higher levels of inter¬
now

pectation of-inflation rather than

phrase
used by

investments after they have paid
income
and
capital
gains
investor

rates

prevailing
are
basically the result of a wide¬
spread experience with and ex¬

power¬

such

taxes

savings.

authorities
have
in
mind
when they take the position that

continue,
high in¬

how

is almost inevitable if

It is this process that our mone¬

Let me give you some
of

speculation,

tary

incentive that link may be.

an

You

that

linked

result

rather than

expectation of inflation lasts. In¬
flation, once it has been experi¬
is

such

these increments to the supply of
funds
represent
credit
creation

toward equilibrium so long as the

enced and is expected to

such

and, when they do so, generate
fresh demands for loanable funds.

situation

It will not

conditions

emanating
from
de¬
They
may
rather,
by
financing
more
speculation
in
equities,
increase
the
apparent

dissipation and diversion of sup¬
ply.
Thus, conditions inevitably
are

demand

these, it is difficult for incre¬

mand.

demand

of

time

bor¬

in real

pressures

runs

of the

the

at

zero

ments of increase in the supply of
funds to have the effect of easing

continuously
supply. There is
incentive working toward con¬

an

less than

was

terms.

as

In

excess

tax de¬

a

chase such plant and equipment in
advance of need, it will be found

thin margins and to borrow
heavily to finance the acquisition
of equities that may be expected
to rise in price.

in

costs

risen

position

a

as

very

loanable

than

and

have

more rapidly than the aver¬
level of prices as a whole. As
result, a great many taxpaying

a

infla¬

borrowed

are

be

equipment

age

increasing

Customarily,

to

Construction costs

capital

much

Concur¬
of

income

Actually in practice, the rate at

This reduction will affect

rowed

net

which borrowing to acquire infla¬
tion-resistant real assets has been

type of investment that relies

any

figuring

to

corporate income tax,
leaving a net cost of slightly less
than 3% with which to purchase
assets that are expected to appre¬
ciate by that amount per annum.

popularity

verted.

charged to business
and deducted from gross

in

subject

markets.

in money form
tion of part of

any
net
The reason is that

income

and

capital gains are
rising
inflation-stimulated
A

incurring

the 6% can be

real

or

before

cost whatever.

tends to

equities

a

retically, to pay 6% for loans to
acquire
inflation-resistant
real

been

appear,

if

to
3% annual rate, a cor¬
porate borrower can afford, theo¬

necessary

why it should be confined

reason

to

There

investors

in

growth.

af¬

will

a

During a period
of creeping inflation, at a rate of
3% per annum, it would take 8%
to provide an equivalent after-tax

purchases of

equipment.

of

This

after-tax

just

take

return

assets.

smaller than the total

vested

pear

As

example,

In

years.

corporate

"after-tax

mote

loan

a

rates.

which, in a period of stability,
would be content with an invest¬

recent

chance that they will be dissipated
in
consumption rather than in¬

fixed rates of return.

endemic,
in

cult

final demand.

industry after 1955 il¬

capital.

was

surfeit of markets rather

than by a fall-off of

lizers,

over-

inventories

During

inventory

touched

Due

prior

demand in

taken

inflation.
the

1953-54, and
a

capacity was evident even
though more was being built. The
large build-up of capacity of the

of
in¬

been

•

The process of growth requires

a

inflation.

amounts

have

vested in corporate common stocks

whenever

inflation. The business cycle
more
pervasive
than
that. process actually chosen is in place. consumers and the rest largely by
Any
investment decision, for
What I
am
saying is that the
industry and commerce.
Govern¬
instability
of
business
is
in¬ example, involving a choice be¬ ment lately has been a net bor¬
tween
alternate
materials
that
creased, not decreased, by infla¬
rower.
Predominantly these con¬
are
substitutable for the desired
tion and by
the anticipation of
sumer
savings
have
taken
the
use
will be heavily weighted by

by

huge
to

Thursday. August 27, 1959

.

problem is to estimate what hap¬
Dissipation of Savings and Distor¬

sequently,

plies

the

.

in
of

of

tion of the Saving-Investment
development, con¬
Process
that leads to miscal¬
impedes
the
Both inflation and the expecta¬
technical
effectiveness
of
these tion of inflation
impair growth be¬
decisions impairs growth. It im¬ cause
they tend to divert the in¬

duction.

by

known

capital is lacking for common stocks, so that we know
a
wide
range
of projects that something of the amount of funds
would contribute to growth. Also," that
tHe is-ue of new common

effect of improving

and have the
the

of resources

use

in

and office buildings
despite heavy va¬

nanced

funds

Meanwhile,

it is

the expecta¬

Both inflation and
tion

culation

By Inflation

of

active

be

cancies

takings were well-maintained.

balances

and, finally, with adverse
in their

will

policies, final consumer

Misallocation

will find very

example, one

frequently serious overinvestment
in real estate.
New construction

.

demand

generates
in

turn

•

for

loanable

rising

prices

generate fresh

de-

Volume 190

Number 5876

..

The
Commercial and Financial Chronicle

.

(849)

! loanable funds. Rising ,county, even when that experithtdS
a per
^nc,e 1S carried back through the
Tn thp pvtpnt +hi?a+1hlxrP+^SSUire+l
C?u
^ ?
a- quarter- to
tt
«+JI S1tin?ulate coyer. the whole period since the
store the situpfinn'SaiS ^
£Pe,T?. phas£i °f the Industrial
To the PYtPnt that tw
Revolution That is the reason
in+oroet

•

greatertconomvIn theVolZi
£2?^ ^
rash balanres
th7nthi K ^
s?.

It

not

was

until

in

fact,

hazards

country would inevitably

health,

experience a persistent .creeping infia,

u.

u

m recognizing its

There areiless highly developed

•♦Yl •believed that perwin
sl®te^t.mf}atl,on was impossible in
Cf jriT c3 adhered to the gold
thorities nermh sfirh HomoL tn
?tandard- So™e economists, it is
iITh
Lhu
S true> observing the persistent
monev
The efforts ofthp
worldwide rise of prices that be-

has been an abundance of experience with inflation and an abundance of data to permit observation and evaluation of how society

nn

r

So+the other diand, implications.
countries, however, particularly
creased and tension
Inf1 ?ftion" «JSi th^fcentui7 b.efor? J£30 gen" ln uatin Am*ric*> whe?e ther.e

artnressuresrnitSni
fncreastThese
SsoSicrease if thi Snnpttrv^n

nr

nre^nrec

q

n

k

n

f

«

mnnp

S?v authoritfef under InSS; fan aJ°1Smd -the .turn of ,the

.c<rn_

taiT following increased mining
Pressure t ill of gold in South Africa speculated
cred?t rrp/tpH m^n? nf about the possibility of a gold in-

ofinflati^
contain
sion

the

in

Thev

bavment

rS

have

flatlon-

nntinn

These discussions, how-

reacts

once it is generally antici-

endemic

is

and

expections

expansion f2J2\hl f^er» neYe^ P^netraifd deeply into further inflation

such

of

sions

Deficit in

the

Balance

of

Payments

*s_ rnos^

itnili

dramatically
leads

it

competitors,

to

participate

creat-

dence of how inflation,

prospective,
the way

in

It can
I

■■

VitOViM

events

of

the

Great

De-

cautious.

remained

pression,

longer

no
vt

by the

At

the end of World War II, in fact,
the overriding foreboding was one
of impending collapse even though
4-L

r\

tional specialization of production,
This is a fundamental

impairment

^3

<-v

actual

basis f°r growth

situation

a

until reserves are
a, drastic

for,

ilation

one

way

can

persist only
exhausted. Then

decision

either

t

«J *«.

vs

inflation

...»

will

be

that ends

can

then

was

temporizes

by
as

control,
case

of

adoption

and becoming rampant. We
all remember the predictions

heavy and persistent postwar
unemployment
that^ dominated

called

the

in-

outlook at tnat time and the

man s

pervasive

the

It

expedi-

devaluation.
three

In

fear

of

impending

an

will
may,

bulk

starting

m

through

the

f

'
active

misallocated, ana the saving-investment process will tend to be
distorted unless proper liscal and
will

the

the

S

Shelter

remarkable, looking back
present point in history,

that

prolonged, capital will t ri t°r be
tend to

efficient

of

1939,

the

and

inflation

extending

Korean

episode

continue.

afforded

production,

It

rise

was

left to the much

of prices which started

mid-1955, following four

years

widely prevalent view that inflation, or at least creeping inflation, is probable. The year 1954

growth

and

inevitably be inhibited and
in fact, be brought to
a

witnessed

:

standstill.

a

basic shift in business

expectations.
_

v

...

4?

*

savings

into

(i

I*

a

Expectations of Inflation

A New

Phenomenon

and

is

the

enemy

country been

very

of the ensuing
ensuing

*

As this analysis

It

History

is significant in this
Viiofnrinollir

connec-

onnAurlinrf

fa

historically, according to
Goldsmith, this country enjoyed a
high

very

sustained rate

average

0f

rise,

in

rate

price
fall

of

in

prices, in fact, was the greatest
our
history for such a prolonged period. The rate of growth
per
capita
during
this
thirty
jn

years

averaged

full

a

one-fourth

The

economic

setback

here, how-

of

argument,

propo-

Demand-Pull

mand

for

above

the

Tliirincf

thp

cfrent

are

inflation is

to

certainly lends

the

that

assertion

aid to growth.

an

Federal Reserve Banks to expand!.

dphnfp

in-

nn

Considered

solely
from
the
point of view of the public welfare, or of social justice, the effect
0£ inflation in diluting the purof

savings is

money

accumulated

evil.

It

repre-

than n^ely to derive their income

ever

■;the

was

inevitable.

It

was

business decisions for

not

until

ter

recently, until after 1954,
that this apprehension took hold,

century

almost

a

full

quar-

completely

disappeared. As the year went on,
Before that time we thought of it became widely evident, first,
the inflation as essentially tempo- that
Western Europe, far from
rary, and we did not expect it to experiencing
a
setback, seemed
continue. Thus, our savings deci- actually to
be moving forward
sions and1
were

not

our

i"to

investment decisions

dominated

a

boom,

final demand

during most
of this period by expectations of
rising future costs and prices. In

and,
in

second,

this country

and

savings banks, by the type of

famiiies

savings

who

and

are

shareholders

in

loan

associations, or
hoiders of insurance policies and
pension rights. In the period 195158
the net
acquisition of these
types of fixed ciaims Gn the part

that

0f

was

without

au

consumers

in

the

country,

including

the

on

investment
new

in

decision

the

is

relatively

experience

of




this

•

Our

whole

experience, consequently, with the reactions to be
expected when businessmen anticipate inflation, is very recent,

three-fourths

payments
retirement

of

total

other

hand

if it started

even

pushK

to

consumer

faL

•

/*•

t

XI

i

t

X

wages

_

»X w,«J

to

nvnetonoo

a

cure

the

In

inappropriate

the

is

said

to

of

the

latter

tive monetary
are

cost-push
restric-

case,

and credit policies

have

inflation

the

effect

inflation or its expectation becomes
dominant
in
motivating
business decisions,

of

because
there will be fewer goods available to assuage inflated final dethe

worse

This

is

not

most

a

It

superficial

simply does not

analysis

sufficiently

con-

carry

deep

or

far. It is true that an economy in
or

less

con-

tinuously, irrespective of changes
in demand, faces a very serious
problem.
Our economy in this
country is basically a free economy, organized on the fundamental premise that costs and prices
are market-determined. W^e must
constantly be alert to maintain^a
market
atmosphere
sufficiently
competitive to make it impossible
for cost-push reactions of the type
described above to become dominant as they are alleged to be.
I
^ not propose in this paper to
delve into the complicated questions of whether or not our econ-

omy is or

has been so dominated.

If it has, it is a condition that ob.viously requires correction.
What I do want to point out,
however, is that the kinds
of

monetary

other1
an A

be*

not

may

needed in the presence

of

push type of inflation.

Itris clear
an infla-

tion

of such

case

initiated

and

cost-

a

perpetuated;

by costs that rise persistently
|n

the

of

absence

of demand

SUres

market

fiscal and

even
pres-

mone--

tary measures, while necessary for
its

will

containment,

tuate a_eure.

sponsive

to

effec--

not

If costs

not

are

re-

market

demand, thn
economy will not function at op-timum
levels nor will it enjoy
optimum growth.

Stability

—

The

Envl-*

Preferred

ronment for Growth

p^erred^
growth?
the

nv

i

do

sucb

a^d
the'more

tion

here

essential

to
for

invention, educa-

as

rather

research

but

general

type

ronmental

for

e

refer

factors

resource

growth

ir^o nrrf n°t
not

factors

to

of

envi-

touched

upom

in thi
Fi

t

among

pbas|ze'the

these j would

maintenance of

em-

a mar-•

ePsentials

is the fact of rising prices or the
anticipation of rising prices that
leads to misallocations of investment and miscalculation of investment decisions.
It is rising
prices or the anticipation of rising
prices that diverts savings into
equities, and that dissipates their
ability to finance growth, in short,
that
diminishes
the
supply
of
'loanable funds and accentuates
force

a

these

that

say

measures

ket-orientetl
economy,
sensitive*
problems that have been discussed t
competitive forces
in which;
in this paper are with us and have
t
and prices are flexibly reto be faced whenever we are con- sponsive to the
interplay of supfronted with inflation or, particuj
and demand
jn such an econlarly, the anticipation of inflation, £
I would expect to find quick:
irrespective of whether the mi- appr'eciation of the advantages o£
tiating cause is demand-pull or
to
growth—specializacost-push.
tton substitution innovation, efiiTo be specific, it is the fact cie'
and economy
of rising prices or anticipation of eiency, ana ecu
y.
rising prices that provides, the
incentive to borrow to finance ?Pens m,e
mccimvc
w
A° r>ri^nfntinn
^
overaccumulation of inventories

rates.

creditor

to

in addition to fiscal

measures

that in the

is

This

t

cies of restraint have to be apwhen plied whenever either the fact o>!

restricting output and thus mak-

ing

r*

demand-pull type of in-

but

inflation

Predominantly,
claims
acquired

through

cost-

a

as

tha?

and/or prices that is superficial to assert that respread through the whole strictive monetary and fiscal polieconomy partly by escalation. It is cies
are
not appropriate in the*
cVi
claimed^ that restrictive wAvtn+nmr presence nf a cost-push fxrnA o:»'..
monetary
of
type
and fiscal policies are appropriate inflation.
The fact is that poli--

savings in financial form.
the

re-

of inflation
bV
very
in which the initiating impulse is be converted into one of the desaid to be a £orced rise of admin- mand-pull variety. This is why it.

proving itself remarkably resil- aCqUire Federal
anlent, particularly for housing and nuities, equalled
two-thirds
of
pervasive automobiles.
total
net
consumer
saving and the demand in such

fact, the emergence of a
expectation of continuing inflation
as a dominant motivating force in

is

nressure

contained
and
bank - created
is used to fiharice these*
against inflation, the in-

refofnder

high

and

a

to
interest

way

rising

as

So-

^iich

j

tion

this

hedges

mild initially
might well from ownership of equities rather
snowball because of an induced than of bonds In contrast, the
and magnified response from greai creditor classes today are
great ereunor classes luuay aic
rising prices since 1933, we have abroad.
* —-1
heavily weighted by those ...i._
who
not, through most of this period,
During the yearu1954, j this. basic own U. S. Savings Bonds and time and the construction of plant
♦i->
f
,
,
had a sense that continuing infla- pessimism
that had dominated or savings deposits in commercial capacity in advance of need.
It V1^
answer
lies, I believe, in
realm of expectations.
Although we have been experiencing

If

reserves.

flation

nnd

Ccok-puVtype

which costs rise more

Inflation Is An Evil

power

avail-*

resisted

nnijPiPs;

elusion.

credence

far

funds

money

the

no

,

made

able

flation, i. e., an inflation initiated
by
excess
demand
generated
through lax fiscal and monetary

factual

It

borrowed
amounts

banks to borrow is very heavy an<3i
this in turn brings pressure on then

Cost-Push

or

Inflation

than our overall rate of mand.
record.

be dedemand-

may
or

by savings and unless they
by appropriate fiscafc
and monetary policies, i.e., by balanced budgets and by restraints oxx
however, it becomes quite clear the availability of reserves, they
that no important group today result inevitably in an expansion*
defends inflation from the point 0f bank-created money,
of view of social justice. PractiBecause borrowing to anticipate®
cally no one disputes that, taken inflation appears very profitable.
by itself, inflation is evil.
"
~
"
"
the pressure of customers on their

growth of about 1%% per annum
for the last 130 years. That is the

and^asked ^selves^whether this

an

heat

type.

not

average

are

growth.

the

gistent

-

retard

in

flation

fall,

irrespective otf

ensue

in the credit market, these sitpractically all of our huge housing nations increase the profitability
growth.
of operating on borrowed fundta
I don't want to labor this point, even at very high interest costs..
but it needs saying. Sometimes, They increase, therefore, the de-

growth in the 30-year period
1869-1899, which witnessed a perThe

All ol?

payments.

tben

______

ion
tion that

of

development since 1950, including

0

ot

indicates, infla- postwar replacement and recon- sents to an important degree a
mutually in- struction boom had passed into transfer of wealth from less forcompatible.
Basically they" arh history So also to a considerable tunateTy 7ituated"indrviduaTs and
antagonistic rather than reinforc- degree had the effects of the ex- families
to
equity
holders
of
ing. Since this finding runs di- pansion engendered by the Kohigher income status.
rectly counter to the facts
of rean War.
It was m this setting
There was a period when some
recent experience, one is forced that
we scanned
the emerging obserVers
thought otherwise. They
to ask what is missing from the downturn of the economy m 1950
regarded the forced transfer of
analysis. This country has grown
wealth that results from inflation
rapidly postwar, and prices have
" might really foreshadow ag one that favored
enterprise at
been
rising intermittently since the onset of that Great Postwar the
expense of a coupon-clipping
3933.
It is true that these
in- Depression that had so long and
credit0r class dominated by the
creases, prior to 1939, were hailed so wiaely been heralded. We were so_called idle rich
Consequently>
as
evidence
of
reflation
rather strengthened
in
this feeling by this
transfer, it was alleged, had
than inflation, but in the postwar uncertainty
over
Europe.
Al- the effect of fostering innovation,
period the country has certainly though European economic reconenterprise and growth.
been aware that it was experiencstimulated by the MarThat rationalization is implauing inflation. The question then shall
Plan
was
a
recognized sible today because of certain obis how to account for our rapid success, most of us continued to be- vious
facts
First>
except
for
rate of postwar growth in view lieve that the Western European
hoiders of tax-exempt securities,
cf the fact that inflation tends to economy was still fragile and that
the so.Called idle rich are more
tion and growth

balance

are the sav- whether an inflation
ings that have financed," in very scribed as cost-push
important degree, our industrial pull.

istered
Record

e

that year most of the effects
of^the industrial dislocations of chasing
World War II

xt

for

the

life—misfortune, ill these reactions, which place great
and old age.' Far from strains on the monetary and fiscal

ing of growth, these

hedges

.

failed t0 Sive rise it would higher
to more
apprehensions that

milder
in

of

^adopted, of stability, to establish today's
to
in-

be

of

levels.

our

expedi-

of these

°

is

from

protectionism, import

or

all

with

of

business

long by its
present expectations of long-run
creeping inflation, it would almost certainly have experienced
a slower overall rate of growth.

under

of

by adoption of appropriate

situation

sustained

—

monetary fiscal and other policies, inevitable Postwar Depression.
or
one
that
ents such

of

dominated

_

very
Such

actual or
impediments

places

ment

and consumers, shell-shocked still

the

world!

deficit in:

a

of

being unavaliable for the financ- mechanism,

activity, promotes the misallocation of capital, diverts the invest-

dominant mood of both business

actively in interna-

so

were

the

° lts +mt^na" £? inflation in this country — above that inflation
^ point will be.highly vocal ones. However, the of growth. Had this

onfltrolir

C«r\

gold

to

to rise.

ex-

reserves
because of
decreasing exports or
ncreasing imports, or both. It is
then said to have priced itself out
TIO Y*T1 Pinotn

that the

increments
of

crisis

a

?Ilose

of world markets

expectation

*ng a situation in which world
prices would continue inevitably

....

when

an

annual

world's stock

^The effect of inflation in halting
hibited

on

larger

International

are

that prices a country out of

of markets and initiates

pated that inflation will continue nents of inflation, particularly of
* Prevail In parts of Latin the so-called creeping variety, get
America plagued by lax tradi- sarcastic about the ravages of intions with respect to basic mone- flation. When one surveys the
tary and fiscal policies, inflation relevant literature as a whole,

deepseated
maladiustment^andfnrreaS
I e market place- People did not and universal. In those countries,
si
ana increases ten- to any extent base business deci- one can find in abundance evifc on
since

purchases represent savings out of

ceptance of the theory that this

haVG recent.1/ ^on

of

1956,

that the rise in prices that started income put aside by people
in 1955 gave rise to widespread ac- moderate means to help meet

25,,.

we

Union which

rnn^

Mv

renlf wouldt

®
nn' tS'nnJ hind
be W on ™p °"e'-JP™'

wfmlri

SoyieJ ^1^ ai d
gect such rates ot

boviet

to

lQf
other

hand

m \cne orner i a ^
e

themselves

pla""^

a£e Decomi g
^ta ^nd nrices

Finally, it is the fact that• costsra
country's
prices
have
risen ues 1
above
those
of its competitors

ex_.

invPotment

be translated

the

forced

^

altogether except

growith amd
Jbat accord

toH.

are

w

.

^

that

rk(;t_determined
creates

difficul-

Dianning the op-

_

Continued o

jxiy

26

The Commercial and Financial Chronicle

(850)

Continued

be

to

their

of

re¬

Automation: Effects

They are even reported
discovering how interest

sources.

rates

effect

25

from page

allocation

timum

This

lations.

In

Continued

instances the

some

from page 11
Second, I would rely primarily
mated methods results in the subthe flexible adaptation of der how _their skills
wjll. fJhtp_ jgtitution of mechanical or electhis awesome world of the future.
fiscal
and
monetary policies to
^rical devices f0r human effort. It
Let me say that I believe that
provide both a sustained high
may alsQ resup. jn the substitution
level of output and a price be¬ automation will tremendously l fact0ry or the office worker,
havior that did not stimulate ex¬ crease productivity and thus our
But w mugt result in lesg jnput Qf
pectations of inflation, creeping level of living. It will also change ^ie factors of
production to prothe character of many jobs, paror otherwise.
^
of product.
This is
Third, I would hope that the
rades
the
o
for otherwise the innobenefits of rising productivity and
4W«
vation makes no economic sense,
growth were broadly distributed
,

,

...

....

...

.

...

.

upon

yButR

mas?

spS

mi-

in three general directions and not

overweighted in

(a) -in
and income

any

one:

the direction of wage

nf ?t?nn ^

s?nce

the

those

mobility and the ready
availability of needed skills and

proved

talents

(b)

at

points of innovation;
the direction
of
lower

in

prices

promotive

expanded

of

markets

products

broader

for

and

those

end

where

productivity has
lowered real costs; and (c) in the
direction of sufficient profit-en¬
couragement

to those who inno¬
vate successfully to stimulate ini¬
tiative in management -

f i

machines

t

r s

who

h

were

technology

boeev-man

im-

regarded

a v e

great

a

as

certain

harm

to

efficiencies
in

of

growth

were

re¬

falling, not rising, unit

costs.
I

think

this

it

that

ment

was

something

provided

the

favorable

so

like

environ¬

to

the

very

rapid growth rates that prevailed
in this country in the last third of
the

19th

century.

I

suspect that

the

the

new

Industrial

untapped
created

techniques of

Revolution
of

resources

to

the

the

West,

situation in which fall¬
ing prices for final products still
left wide margins to
provide high¬
a

er

returns

as

investment.

for

manpower

tion

avoid

where, despite

technical
such

unit

♦

situa¬

a

high rate of

a

innovation

productivity,

*

.

Finally,' I would

well

as

and

costs

rising
rise

and

man

therefore

in

trend,

Automation

create

has

accel-

will

and

all the evils-it entails.

disagree

with

the

ponents of the economics of

ing inflation when they
if

(and

machinery.
serious

costs

rise

faster

tivity, final prices

than

produc¬

must rise

economy will grind
disagree with them

to

or

the

halt.

a

rather

I

when

they

say that such a
process is
sustainable and constitutes an ac¬
ceptable price for growth.

My

complaint is that it is both cruel
dangerous. Far from provid¬

and

ing

firm

a

underpinning
to
growth, it will, if long continued,
instability, increase ten¬
sions, and impair the very basis of
engender

to

created

as a

Milton

Steinbach,

of Wertheim
investment

ner

and

the widespread advance of exten-

sive innovation with its enormous
job creating force. And demands

will continue to

for automating equipment

by

the

manufacture

require the highest skills and techniques of the
machinst trajde. The huge and intricate machines
cated

the complimake auto-

controls which

mation
of

and

possible

the products

are

industries

many

thousands of

employing
Con-

persons.

trols.

and

Company,

bankers,

elected

Carey
Robert

director

a

has
The

of

been

Automation

S.

King,

is

also

Company,

tion, and Spiegel, Inc.

Quinn & Co. Opens
New Branch in El Paso
EL

PASO, Tex. — Quinn & Co.
has opened a branch
office at 111
South El Paso Street
under the
management of L. Philip Holmberg. Mr. Holmberg

was

formerly

local manager for E.
F. Hutton &

Company.

creates

jobs

(SDeclal to The Financial

GLENDALE, Calif.
Jr.

Freschi

also

increase the

can

therefore, be
improved as more jobs are ereated. The fact that
automation, as
all technological
progress, is basically job creating and not job

destroying

cannot

be

reiterated

enough.

A failure to comprehend
this fact can result in the eventual

stagnation of our industrial society. Some of the misunderstand-

Chronicle)
—

Raymond




either

the

sole

the

or

:

Later, when business picks up,
employers
are
understandably
f

and

averse

reluctant

their work force.
then

usually

isting
even

made

work

add: to

to

The discovery is

that

force

is

the

ex¬

caoableof

increases in production
additions.
This accounts

more

the

re¬

without
for the

third

this

point to bear

connection

is

in

that

mind
much

potential

technological- displace¬
ment of labor is avoidable by in¬
telligent planning. The decision

of

few years

a

ing realized
should
years

back

when

have

been

To

ago.

are

probably

realized

attribute

of

automation

some

such

isting unemployment to
burst

be¬

now

they

ex¬

sudden

a

is

fail

to

to

that there has not, nor in the
future will not, be displacement
of individual

or groups of workers
result of the installation of
automated equipment.
Such displacements have occurred many

as

trition to take

It

The

tify

been

.

from

.

„

versus

types

of

innovation

research

and

a plant.
In order to jus¬
investment in automated

an

equipment, companies sometimes
integrate more fully, doing more

su*ts

result

development

products and new
Intensive innovation re-

from

efforts

order to insure

to
or

a mass

improve
designs in

market. For

example, the development and
oi

printed circuits is

son

why

General

manufacture

one

use

big

rea-

Electric

can

better

Extensive

radios

in

innovation,

the

on

other hand, results in the creation
of

entirely

uses

new

products and

for products.

new

Examples which

and"the°mTn-madl diamond15'8'"
Automated
esses

are

methods

basically

place

anyway

because

tion

of

have

production

a

In

ex¬

smaller

a

proportion

of the

fected

work
of

force

white

unless

collar

their

program

unionization

can

get off the ground. This helps to
explain the tremendous interest
of

the

the

AFL-CIO

unions

will

by their

in

be

unionizing

af¬

strongly

success

lack of

or

human
to

dignity, can do much both success in a white collar unioni¬
dispel the false fear of automa¬ zation program.
>
r|v V i;
.

tion in the abstract and to handle

the problems created by the intro¬
duction of new automation meth¬

ods

when

they

actually

present

Predictions
course

Pockets

of

1958

Pennsylvania

which

exist despite the strong

made from the recession
have

been

attributed

by

to the effects of automation.

It is true that much of this

unem¬

employees

needed

are

or

whose

live.

possess.

different

or

It is also correct that such

with

so

are,

of

there

is

area

far

a
strong response.
white
collar
em¬

average

ployee

Unemployment

this

risky, but

met

The

The pockets of unemployment in
areas
such as Detroit, West Vir¬

in

little indication that the
appeal of
unions to white collar
employees
has

themselves.

of personnel in areas where fewer

job loss which results

If for

careful preparation and education,
carried
on
with
due regard
for

greater skills are re¬
quired than the unemployed now

The

union relations.

ample, the proportion of hourly
employees in the labor force con¬

white collar employees. Obviously
the future power and
prestige of

continua-

old

certain to have

are

the union movement

on

majority of cases, in¬
creased
production accomplishes
the same thing, and, of course, the
availability of alternative work in
other
plants where
neither
of
these are possible is a typical de¬
velopment. In any case, however,

ployment is due to concentration

the

on

sent

the

taken

by

effect

repre¬

tions covered.

methods would render the operation inefficient and noncompetifrom

failure

competitive

and

and

proc-

examples

to

automate

is

economy

loses

to

out

in

a

greater

the

more

alert

concerns, it does not contribute
to
employment through

either the purchase of new

jn

new

methods, techniques

would

an

and

tinues to decline—that is, if the
number and percentage of engi¬
processing of raw materials and
neers,
scientists, technicians and
less sub-contracting out of parts.
other salaried employees continue
This adds to jobs in automated
to grow at the same or greater
factories by increasing the opera¬
relative rates—unions will

some

equipincreased pro-

through

or

ductivity.

stimulated by the constant competitive need of industry to reduce
costs, to improve methods, and to

develop
designs.

usually

ment

.

Extensive
Innovation

All

new

has

been

to follow the

employees.

somewhat

loath

leadership of hourly
This

certainly

may

change. Any management policies
which fail to take into considera¬
tion the problems and
of
salaried

aspirations

-employees

can

cer¬

tainly hasten that change.
At
present, however, there is no. evi¬
dence

white

of

a

roots swing x>f
employees
toward

grass

collar

unionism.

!,

No group
more

from

be expected to be

can

affected

or

automation

to

profit

than

more

engi¬

our

coal

impact of such innovathrough automation on jobs,

-

bring

can

mate

intensive and extensive

Intensive

forgotten

unemployment. »And, of course,
when the company does not auto-

a

—and the
tion

be

fail-

this point results from

novation

not

automation

work to

problems which have been

discussed here
also

must

that

of

In the iirst place, such displace-

'

Union Relations

on

of much of the

problem.

recovery

ment

■

than any temporary technological

which

has

care

a

Facts Regarding Job
Displacement

-

Effect

generated

ing

has

opened an office
at 1032 North Glendale
Avenue to
engage in a securities business.
Robert B.
Carlson is associated
with him.

is

neers and scientists.
Although the
not be elim¬
hysteria
about
the
engineering
inated by the continued expansion
has subsided, there !is
of the economy, but will be re¬ shortage
still a shortage of good
engineers
duced only by movement of work¬
and scientists, and there promises
ers, out of such areas such as the

&qdidn{eneyearsa ago""

R. F. Freschi
Opens

A
in

gard.

a

Baldwin-Lima-Hamilton Corpora¬

of

cause

arrest
or
slow
the
wage-price
spiral and the profit squeeze.

automated plant

Company,
Chairman, an¬

Steinbach
director of Armour and

are significant and far reaching factors
contributing to such extensive in¬
novation, aiid thus to the growth,
progress, and prosperity of our
economy and country,
I am, of course, not suggesting

market for goods.
Society's standard
of living can,

Philip

Mr.

it

large increase in produc¬
cession—certainly not an ''auto¬ tivity which always is featured
in the first stages of the bcom. To
mated recession," but perhaps it
could aptly be termed a recession cry out that more goods are put
brought about in large measure out with less people at the start
by the inability to„automate fast of the boom is merely to uncover
enough and effectively enough to the fact that the productivity gains
fundamental

a

times in the past and will occur
in the future. Several facts, hoW- ginia and
ever, should be noted in this re- continue to

Manufacturing

nounced.

to

justify further investment in ex¬
pansion and improvement except
on ™a
dangerously unrewarding
basis.
The resulting cutback was

because, by producing more efficiently and at a lower cost, the

ure
to
distinguish between two
distinct, yet corollary types of in-

senior part¬

a

jobs)

assembly of automated equipment
—jobs, incidentally, which do and

<

Named Director

creates

built to make automation possible,
A growth economy is built upon

fallacy of those who

automation

upon

over

growth.

doing

so

because new machinery, materials,
controls and facilities must be

unemployment is their failure
consider
the jobs which are

of

creeo-

that

hy

source

A

ex¬

say

instances

_

.

many

not

produce because of automation
through intensive innovation, and
the new equipment required by
the greater production or render-

of a11. equipment obsolete by
the new innovated, or automated
methods.^
many individual jobs while raisExtensive innovation is entirely
ing the general level of living, job creating except insofar as the
People will be needed to operate »ew innovation or product puts
and maintain, install and, above
an °td out of business. Automaall,
to
manufacture
automated tion spurs extensive
innovation
Automation promises an
erated continuation of this

degree as to press seriously
sider, for example, the new elecprofit margins and thus
bring tronic
plants and industries built
pressure for selling prices also to
since World War II to supply inrise.
That path is the path of in¬
dustry with machinery and conflation with
do

m a growin& economy,

the

on

I

unit

ousiness

to

many

lieve

major factor.

and
profit
existing and

drop

in

on

;

to

a

sales

spiral

Thursday, August 27, 1959

.

'...

manner

lowering of unit costs at that
look
time, made possible by the appli¬
of

cost-price
profits.

.

see how
Although intensive innovation
closely 1959 patterns are
great mass of our people unless
is Potentially labor displacing, to automate is not an overnight following similar periods of the
drastic remedies are hurriedlv dethis labor displacement is offset brainstorm that can be accom¬ same position in the business
veloned ^nd nut in to eSect Yet
b^ three factors: the ^reater vol~ plished the next day. Careful cycle. There is nothing like the
thanks to our great
technology' ume which cheaPer Production planning, a long wait for delivery study of history to deflate the
we are a societv in which leisure'
claims of those who see the pres¬
through intensive automation por- and
ample opportunity to plan
ent as unique.
education and income are distrib:
te»dsi the fact that ne*' Products labor
'
integration all combine to
uted
in
the
most
equalitarian Bec°me economically feasible to permit retraining and normal at¬

laboring

the

cation

a

of Product which requires less
factor in-out is cheaper to produce
and cheaper Jto buy. This is the
real waning of productivity gains

the

history and further advances
in well-being are steadily
planning
for
becoming available to an evergrowth.
In
other
words, I
would favor a situation where the widening number of persons.
flected

And it further follows, that

Fver

placed in factories there have been

advances to the working force to
encourage

fficp

on

insufficient

of auto-

use

the

squeeze have made
prospective
returns

Employment and Labor Force

essential in these calcu¬

are

of

sales and

Unions,

on

.

of

intensive innovation in
operation,

be

second

noted

that

place, it should
technological dis-

placement of labor in this country
always been small because

has

technological

development
occurs in periods of high
prosperity. Indeed one of the main reasons

why

because

there

is

the

jobs

of

prosperity
and

is

income

generated by business investment
in

plant

and

equipment.

that investment slows
ness

had

an

outstanding

When

down, busi-

conditions drop off.

We have

example

of

this investment cycle in 1958.

Those who have calIed the
cession„
first "automated
cession

have

Slven

their

re"

re-

facts

completely upside down. We have
a

recession

primarily because

temP°rary slowinS dow"

of

busi-

the

least

of

which

has

been

the

any

existing openings.

To attribute this

unemployment
largely to automation, however,
may
be quite incorrect.
In the
final period of our high prosperity
in 1956-57 many of our factories
and
offices employed
personnel
far
beyond
their capacities
or
needs.
This is typical of the end

time in

the

present

past.

or

Moreover, all signs point to a
ognition of the engineering
fession in terms of status and

pensation

at

a

relatively

rec¬

pro¬

com¬

higher

level.
Most companies have now
ognized the need for a sound

rec¬

per¬

sonnel administration program

for
engineers and scientists w h i c h
over-employ¬ recognizes them as both members
ment occurs, not only on over op¬ of
professions and part of man¬
timism concerning the market, but
agement. The budding engineer¬
also upon failure to assess gains
ing labor movement which began
in methods, equipment and pro¬
during World War II seems to
ductivity, and therefore to com¬ have gained little
ground in recent
prehend that a smaller work force years, and is currently split over
is adequate for larger production. a
dispute as to whether the en¬
of

the

boom

when

When the cutbacks do become

re¬

gineering unions should include
quired, these last hired are let
just engineers and scientists, or
go and the astounding discovery
usually is made that they were whether they should also embrace

never

needed

in

the

first

place.

Further cut-in employment based
on

more

ness investments which in turn techniques

was caused by various factors, not

may

to be such a
shortage for many
mining communities of West
years to come.
Virginia, or by the acquisition of
Our future automated economy
skills by workers where the un¬
will need good creative engineer¬
employed are predominantly un¬
ing talent in larger numbers than
skilled and therefore
unable
to
fill

the

most

unemployment

mation

efficient
are

may

be

methods

then made.
a

cuts, but there is

nonprofessional

technicians.

the

future

foreseeable

it

and

Auto¬

factor in these
no reason to be¬

therefore,
unionizing

small,

that

the

potential

engineers

provided,

For

seems,

is

of course,

for

rather
man-

Volume

190

Number 5876

The Commercial and Financial Chronicle

.

.

.

—

(851)
agem®nt

intelligent and

Purs.ues

engineering personnel

policies.
In union relations

ready

mean

erance

It

able future growth and plans
Objectives and policies have

of

the

will

meant

effort

on

pertaining to layoffs,

further, not hinder, to

participate in change, will
contribute to change, must handle
~

•

sev-

—

.

the

the real

demand, of

course,

survival

our

'"

'

and

the

best

assure

of

progress

economy.

'

—

k

work, etc. /
unlikely that the

shorter workweek
may be revived
with automation as the
probable
excuse
for its resurrection—with

:

—

;

—-

fc

/ViaMaQ0ITl©MT

-

mnnrt^nrA

ITS

impOMQriCO

•

.

.

#

I
III

An^l\/CIC

^ fOfilt
V^ieUlI

n

rather

pay

less

Continued from page 3

fected by the age of the business

Up till now, officers of the great
industrial unions have
generally
contented themselves with de-

manding
their

wage increases

words,

wards

of

share

to

so

in

in

as,

the

re-

technological

progress.
The speed with which
wages have

gone

and,

up

indeed,

oustripped

-ph

how thev

'

be solved?

mav

and

are

Drobiem of analyzing

man-

A^wfth the Sze
Q? the business enternrise In
a

enterprise

0ne-man
one

sible

evaluate

to

man

alone

be

can

for

is

there

because

considered

tbe .fajiure

onlv

or

the business. In a large and

dicate that their program has been

^en

seem

in-

f.Ttn'n®'n succe^'r]- Consequentfn6 ncd /^tempted, as do
f

s™

.of the craft

unions

printing

the

in

trades,

to

nlpv

pnternriso

to

therp

arp

commanv

Sometimes

meaSure.

of

success

SvrnHHCtwltyTi inc.e,the e.nd.of
War II would
to
World

he

resoon-

be-

of the difficulty of analysis,
the problem is ignored, while in
cause

other
to

cases

real

under

t

effort is raade

the

a

surface

to

see

enterprise> a§e being an indication of reasonably g°od past manaSement>and management quality,
This is wh^ 1 believe that the
management of business is so imP°rtant to us bankers, and that it
may be the most important single
dement-m credit appraisal, and
'
therefore, it deserves our

,

So I.think that

automation,
officers, who in

past years have proclaimed technological progress as a great benefactor

of

controls

plants

their

members, demand

the speed with which

on

it

j

•

n

Management and Union Control

in

the

tions

of

course

the

over

sTteacher

oast

t

*

nheprva-

mv

several

vears

Fonsultlnt and
ex^uti\^e)T'have reached thFcon^

as

ciusion

which

a

an

development

interested

also

are

in

preventing

union encroachments in that field.
Ori the other hand, in those plants

which

management

has

been

most

dynamic in applying the latest technological developments to
its

own

the

unions

and

processes

methods,

have had the

terest and the least

least

in-

in pre-

success

venting change and growth.
I,
therefore, conclude that no matter
how strong is the union
push in
the

direction

control

and

of

attempting

to

technological advancement

automation,

ment with

a

sound

manage-

desire to maintain its

position in this field
restrictions

on

prevent

can

technological

velopment which do

applies to the time factor — the
shorter the time, the less the risk;
the lonSer the time' the greater

the risk.

de-

The

Failure

business

1957,

in

a

failuies

relatively

and tbe aggregate liabilities involved in all the failures were

duesUoTTTe

a'nail

drivtog

to

coffin n? fhfic comn^niT hi

rad'TthTaggreSye iTaTTeements
Which

do

not

be
as

reasonably

determined,

% of Failures

Reason for Failure

Neglect

v?rv

very raniH
apia

rJtP
xe.

;

^

......

Automation

has,

problems which
the

ingenuity

as an

and

bound to

are

of all

economist and

pose

of

an

tax

Both

us.

active par-

ticipant in the employee relations
field, I am almost daily made
aware

of the gravity of these prob-

lems, and at the
necessity

for

us

same

to

time, of the
attack

these

problems not only with knowledge
of past
practice, but also with

knowledge of principles and with
ability to adapt to changing conditions, frequently essential in todays rapidly
One

moving world.

thing those of

worked

and

studied

us

this

area

have learned is to beware of easy
generalizations or quick conclusions which are not based upon
reasonable

actual

observations, let alone

research.

Human

reaction

to change is both subtle and

plicated,

and

com-

rarely conforms




to

Quality

elusive

and

yet

so

and intangible
important in

thing,
credit

analysis, you may well ask how it

be

tied

of mail-

wVTe analvsS

up

question

Apoxner

about

question

eveF

analy.sis along the lines indicated,
area we are deailing with
Ff. 1F10S?: lnlang1blo thing of all,
wbl^b js what is in people s

minds. There will be some membfrS °f ^ ^ who ^ be
than others, and there

the

about

wd*

^nd Perfection
wban ,yoa maFvf ?• mayiaSement
"^FF1

if
they
understand
objectives and policies.

Another

the

credit. I don t want to imply that

and

company

It'

combleted

een

tne stronger
may

be

wbo

some

weak, Als0 it

will

actually

are

be

found

that

™^ me^si^^ him- different managements will have
view
the business
whole
probllm and tha^some wm
willTet
proDiem'. ana inaL som®
of

wub

as

+be

various
be

a

balance

DroDer

functions

which

for

the

need

J than others, and
.JegardeJ as rS0liF
^^1'^

FrF kL

to

S

carried out. It is also interest-

100
Assuming

the

accuracy

determination of the

cause

this

themselves

ments

for

average,

Once

passing

is

the

Upon

basis

the

form

overall

about

investigating

fgement

factor. The

anaivsic

or

the

eltent

investigation

man-

satisfactory
jn

the

know

'pretty

to

chief

should

vou

well

executive

whether he

is

management.,
^ sbou^d be remembered that
n0 amount of capital is a good
bulwark against poor managemenb Continued operating losses
wiU erode the stronSest balance
sbeeL A good management team
fan' ^om operating profits and

be

size
to

and

carrying out

the policies necessary to meet the

objectives of the business
he

er

thp

has

his

whether

and

hp

inh

feet

he

fit

seems

to

fill

through sound financial policies,

the

on

de-

wheth-

the'ground

on

hnld<?

DeoLdLf on
oepenaing

of the

will

position

a

Up

form

0f

the

size

xne

size

ove™ +eVTen a+lV6ry W!fk
ance sbeet. jn other

the

of

oi

ine

words,

as

u

a

wnrb-

light

of

the

of fail-

should
sources

these

of

find
of

factors,

you

whatever

from

out

information

company

seem

ap-

ibl

hnrmonv

t

Questions

are.

determine

business

e

if

the

accounting

and

being

and

pr0Derlv

TimpTrfanT af

TvTmfnf

fpam

a

functions

finanre

a

a«

At

>-USlOm6rS DTOKOrS

sales

A

manufac-

legal

reasonf

Annual Meeting

work

performed

Bo^d

Is +tbe0 Su

in the hne

tbe borrower's affairs?
management domi-

13 nated? The answers to these ques-

managerial experience 19

Incompe^ence

tions

will

suggest

what

further

.19 analysis might be made.

It

ThP

rp^nlar

Among other things, an effort
^ sbould be made to determine what
v
objectives, if any, have been set
The underlying management ^or
;be business in terms of
weaknesses responsible for these groWbh, sales, and profits, or in
failures were tabulated as follows: terms of diversification of sales,
inadequate sales, poor credit Ind products, or markets
or in recollection policies, competitive ?FaFcb and. development. If you
weakness, heavy
operating ex- ^ind there is some kind of a propenses,, inventory problems, and gFam1,ta cover tbese factors, it
over-investment in fixed assets.
? If1? be reassuring and should
lead to certain other questions.

Quick
-

Mortality

Another study

The

of business fail-

what

primary

question

policies 1 have

been

here

is

estab-

ouarfprlv

mepfin^

of^t ISodaSTcuTtoS
in^

Totat TlTo

the election and

officers for toe com-

well baianced and broad viewed, ing

year
will be held in the
Terrace Suite of the Hotel Roosd-

or whether they are narrow specialists interested in things rather
than people>
An

41

Rrrsk^rc

Cl ictompre

maior

of

^^
t?
'ed
Ss
to
lor th? failure
directors are: How well balanced know whether the executives re- Brokers and
,1I,anagement were glven as fo1" 's tha Board? ,How act}ve
.tha sponsible for these functions are stallation of
The

W'
is

it

factors

ure. » ca" be seep that manage- propriate first, who the directors turing,'research,
ment weakness is the overwhelm- of
the

W ^ °£

analysis

reasonably

SUpenor,

inferior.

glze

effQrt

sh(Jnld

also

be

velt,
Madison^ Avenue at 45th
Street, on Wednesday, Sept. 23rd,
1959. Dinner will follow the cock-

made

bere t0 find 0ut whether the vari-

tail

hour

executives have made provi-

$10

por

ous

sion

for

succession

that

so

business will be protected
event
one

anything

happens
if

you

find

that.

ts actiVe and well bal-

tbat there

anced

are

clear objec-

tiveg

and pbHcies to accomplish
them, that the chief executive has
his eye on the ball and knows
what

he

dinates

is

doing, that his subor-

have

at

all

dinner at 6:30 p.m.

then,

the Board

priced

including

Meeting will be at 4:15 p.m.,
with cocktails at 5:30 p.m. ana

any

Gf them.

Overall,

tickets

gratuities.

the

in the

to

with

member,

a

good

morale

and

Many, many useful prizes will
agair! be &iven away and several

^e^ubers ^will ^let us hear My
Fav°rite Stock.
,
Seating will be airanged with
persons at a table. Reserva^

.

|10r?s' on a first-came, first-servea
^l^must Denn oy ssept. Jio,i»oa>
an<t
Thalmann

bshed to attain these objectives enthusiasm and are broad-gauged,
Theu it needs to be determined you can wen arrive at the, opinion ** ^ranK» i-aaenDurg,
whether the policies are real poli- that the organization is well put &
cies or merely statements of in- together as a team to perform the
WifL RnrViA &> Cn
10 years old, and that 57.2%
of *ent> and whether they are ad- required, functions.
Having
arWim Daxne ot vu.
these companies were less than hered to, and are fully understood rived
at
such
an
opinion, you
(Special to the financial chronicle)

ures.made by Dun and

who have

in

®fn

Statement

that the analysis

Te^tTTnTuhe fnto toe ?e co°nd likf^y *5- be ^ better to deal'
such
the
? inqV
mto the second Wltb a financially poor, topnotch
J™Ttoe
h^r well thevundeTstand'comTanv^Ticie Perf?T6r th£n 3
T"1 " y°^
f
tof tbe loanmanagement is
the reqUested, and
oyectfves^anJ whether
S a goTd tank"
tbe
l0a"S ^
DU ia
Sooa DanKthe length of time it is to run. In
Zs Doint it sSld also be potthe

1

...

Unbalanced experience—

will

The Financial
jqow

chief executive is whether he is a
technician and has a management

'

—previously mentioned

"

Lack of

/

Concluding Remarks

depth,

figures

statements

a^aldySIusp0^ Tome

4
2
1

win

them in costs and in
a
a

the

How Is Management
Measured?

were

follows:

ouTstrin
Eduction at Lack of experience
pr0ductl0n at
of business

vieM

all

$615 million. The reasons for quality of the credit risk.
these failures, so far as tbey can
Here is how I think one might

on its right to substitute efficient machinery for less efficient

tois

,

lies behind

over

tiohs

the

whic^

mediocre, or
determined,
good business year. The average dbjs judgment along with the
liabilities per failure were_ $44,784, judgment of the financial stateoccurring

management,

thnuThTetnttoiS long run, result,
™mediata'
tnough not the Inth«

the analysis of the credit.

other questions which

are

_

13,7u9

covered

Certainly, it ill behooves any
company to agree to any limita-

labor

lrends indicated by the analy-

bearnafmnr/rtanteTuidrih

snouia oe an important guide in

quality of management, let can be measured. This is a good
jng do know whether the chief u
+v»
? u u
15
me cite tne results of a study of question. The answer is that it is
executive
inspires
his
subordi-Cy Fln ' 5°W 1
°F Fli"
business failures published by a matter of trying to get at the
nates with respect enthusiasm or Za5°^ 1S+
UJ?'
pferforms^
Dun and Bradstreet in April, 1958, facts and then applying some iear
?
^thusiasm, or and lts strengthsi and weaknesses
under the !title "The Failure Rec- judgment in the determination of
when you have the answers to
fmoortent factor in^redit^ analysis
ord 'Thi ough i957.
1 his stuoy whetner the specific management these questions in a

Unknown

some

developments

2

indicate whether

should

the lower echelons of management
have been developed and in what

the

5w

sbould

also need answering. For example,
it is important to know whether

of

tbe

workers involved

though

f? J?+ sta*emants>
eFiFF F
^ T
return on
Jftes and capital oyer at period of
ye.?Fs'.a"? comparjpg the results
sJmllar Fon?Pebusinesses,

of

perfection
of
statement
anaiysis should not blind us to the

an

„

a

*n case anyone doubts as to the
importance of trying to determine

Fraud
Disaster...

even

metic

.

J

The Lower Echelons
There

„

.

may

significance

If management quality is such

Record

T

.

one

no

not

desirable, because we
recognize it is. But the arith-

all

or

*

number

,

knotvTati°'Sthe finance TitaSntTto
ma?
^^ ^
«ve at an overall opinion of

necessary or

is

.

good
and
which
can
do
irreparable
harm to the industry and to the

methods,

to

..

„

.

he can review the
the

Fa*>t.nr«

.

•

.

s^nall»
P
sis or, more importantly, to the
e ^
rru^ ^ intangible factor of management
important. This also

SS' 3,1
not so

tion

those managements
least interested in tech-

nological

in

FF m1ore c?re^u^

FiFF
r

that

are

least

,

When the loan is large, the dollar
risk is greater; therefore, there is
W en the loan

be automated.

may

Manap-Ampn*

Lastly, the problem of analyzing management varies with the
^1Zif aFv?
=

being carried out, or whether he
is immersed in details or confines
his attention to direction, followup, and the primary goals that
should be in mind.
It is important to know how the
chief executive administers the
business. Questions which can be
asked here are whether he delegates responsibility and authority,
of

r.

f.
*aptor is vwhether the
orSanization is willing to take
business risks If it is, it
sn°uld Progress provided it does
?
take risks beyond its capacity
absoFb Aos!^s w..ch mlSht be
incurred if the risks turn out
J'
1S not' a.nd lsu "? ? ■
FSAed 0nly in conserving what haj
b n accumulated, you should/
another look because th^
^FfSS
J dl® l°n-.J.
v
of overcautious conservatism, j
f
® second factor is the' |i6rrecord °
? manage-

iosf
"1's a^"'mP0rtant be too many, which could very
v,
Wf -are reducln®
Slve h'm a feeling of frustrapee sheets and income statements tion-or there could be too few,
n making our statistical analyses which might put him in an "ivory
™

union

see

no

are

execu-

we ought not to men reporting to him. There

or

own

to who the chief

as

rpU
•

competent people to administer
the policies, and attain the objectives. This leads to an investi-

^thoughtful consideration and and whether
ana*ysisperformance

raTproffress td contrOl°Huit rate what makes the °rga"izat™S m h
of profressPe?haps^ seduced by -?r g™ai1'as.the
^
be"
analysfs "s
their
image of
we now

great significance unless there

gation

Rick

prob-

on the basic objectives of the business whether he
is seeing that policies are in fact

'

their problems

of

area

bas bis mind

MflalySIS

more

than

of management at the
upper level

tive of the business is. Normally
y°u can Set some impression of
him from questioning and discussion and determine whether he

.

.

overtime
W

in the future, as in the past,

us

pay, guaranteed
not

is, and will continue

and

greater

also

is

particularly in the

un-

die the unexpected is a trademark to be, one of the facts of our fast
of maturity and competence. All changing world which we must

part of unions to control technical
progress and to push toward fringe
benefits

derstand and to profit by .change,
Automation

has

automation

will

change, and must be able to

change in stride and to han-

involving alhourly employ-

unionized

ees,

the pattern to which it is assigned
by the uninformed. The ability to
take

effective

27

Bradstreet,

and

covering all business failures
1954, showed that 84.5% of
companies failing were less than
in

5

years

old.

It should

be evident

by those directly concerned.

from the study cited that the loan
difficulties which banks are likely

answered,

to

eral

experience

are

strongly

af-

probably

Once these questions have been
one

feeling

of

should

the

get

a

gen-

effectiveness

will

consider

the

man-

MILWAUKEE,

Wis.

—-

^

Gerald

agement satisfactory except for A.Grossman is now affiliated witn
two other factors which might be Bache & Co., 229 East Wisconsin

explored.

Avenue.

:

!>•

28

(852)

The Commercial and Financial

but did

The State of Trade and
tons of
at

an

steel annually, the

raw

with 89.9%

first

seven

The toll among retailers declined to 113 from 126 and
commercial services to 27 from 33.
Contrasting increases

were utilized
July 1959, compared
capacity figure for the

in

in June

months of 1959

Auto Makers

Embarking

At

the

time, however, Ward's

noted

that

several

car

builders had launched production of '60
models, with others pre¬
paring to follow with their newly restyled versions.
The statistical
agency estimated the car output at 33,305 units
in the week ended Aug.
22, a drop of 54.1% from last week's
72,603 new car completions and lowest count for the
industry

since Sept.

8-13, 1958 (24,072 units).

facilities

for

'60

model

same

on

Aug.
were

¥
^

car

Co.

will

wind

up

Wholesale

Inc.

their

Aug. 24.
'60

of

model

cars

In

started

into

'60

Louis

is

in

the

throes

Car-truck manufacture in the U. S. to
date
ning 45.7% ahead of comparable 1958.

Carloadings Down 13.2% From
revenue

totaled

of

pushing

of

the

—up

1958 Week

tonnage

in

the

corresponding

week

week

of

"

report

in

of

Aug.

15,

Although
previous

spot prices

cotton

Census

futures

prices

closed

Bureau

reported

last

Tuesday

were

Wholesale Food

Price Index

Rises

in

of

the

the

season

on

a

year ago.

Wholesale Food Price
Index, compiled by Dun & Brad¬
street, Inc., advanced 0.3% on
Aug. 18 to $5.95 from $5.93 a week
earlier.
The current level was
8.3% below the $6.49 of the cor¬
responding date a year ago.
Commodities quoted higher this week

hams, butter,
Lower in wholesale price were
flour, rye,
were

sugar, cocoa and hogs.

oats, barley, beef, lard, cottonseed oil and rice.
The

Index

to

findings

areas

31

raw

Retail Sales Still

_

Summer

clearance

Running Ahead of Last Year

sales

of

furniture

has

down

10%

distributed by the electric
light
ended
Saturday, Aug. 22, was
kwh., according to the Edison Electric
increased by 355,000,000 kwh.
above that of

Output

previous

week's

total

gain of 1,517,000,000 kwh.

of

or

1958 week.

13,648,000,000 kwh.

and

showed

a

12.1% above that of the
comparable

shipments of
Lumber Trade Barometer
week ended

Aug. 15, 1959.

were

7.5%

mills amounted

below

465

reporting

3.9%

In the

below

same

production.

rate, and

gross

stocks

duction.
For

the

2.2%

were

year-to-date, shipments

above

duction.

production;

new

the

production

For

of

for

the

of these

reporting

19 days' production at
the
equivalent to 41 days' pro¬

reporting mills

reporting identical mills

orders

were

2.7%

above

pro¬

and new orders

!

were

and

Slightly

industrial failures
declined slightly to 263
Aug. 20 from 269 in the
ported Dun &
preceding week, reBradstreet, Inc. Fewer casualties
the week

ended

comparable

week
*n

toll of 264 in
the

last

occurred

year

when

t^57

there

and were
almost
similar week of 1939.

were

even

Failures involving
liabilities under $5,000
week s dip
falling to 34 from 43 a week
remained above the 25
of this size
ties with
liabilities of $5,000 or




a

to up 12%

total

dollar

further

gains,

but the steel
for a limited
reports vary from

in various parts of the country.
volume

of

retail

was

4-2 to 4-6; Middle
Mountain 0 to 4-4.

While

Summer

well,

activity

pull

a

were

272, but

they

with the prewar

accounted

for

the

edged

Meanwhile,
up

casual¬

to 229 from 226

in

trade
year

over

good

especially strong.

clothing and

in

the

week

ended

ago, according to spot

women's

4-5;

South

Atlantic

clothing continued to

business

provided

a

good

last year.

Dresses, coats and suits for
Fall, and junior apparel sales
Men's and boys' wear sales reports were

sellers

for

Some cities showed gains of
up to 10% in men's
to 20% in boys' and young men's clothing and
Other cities noted that sales were
slightly below

year's figure.

most

to

up

furnishings.
last

of

4-1

back-to-school

mixed last week.

Furnishings for

men

were

not

moving much

areas.

Department store sales
the Federal Reserve

on

country-wide basis

a

as

was

week

in

New

reported

Aug. 8

York
over

a

9%

Reserve

System

to $156,000,000.

operating
provides electric

utility,

an

gas service throughout most
of northern and central California.

The

territory served has

lation

popu¬

a

of

about
6,310,000 and
1,877,000 electricity cus¬
tomers and 1,584,000 gas customers.

includes
The

..,

series

deemable

at

EE

bonds

are

re¬

general

redemption
prices and sinking fund redemp¬
tion prices ranging from 105% to
the principal amount.
Total gross operating revenues
of Pacific Gas and Electric in

12

months

ended

the

June

30, 1959
$556,669,000 and net income

were

before

interest and

deductions

other income

$115,205,000, com¬
pared with $534,778,000 and $110,638,000,, respectively, in the cal¬
was

endar year 1958.

Coral

Ridge Prop's

Securities Offered
An underwriting group headed,
by Cruttenden, Podesta & Co. and

J. R. Williston & Beane

yesterday
public
450,000
shares
of
Coral
Ridge
Properties, Inc. 60-cent cumula¬
tive
convertible
preferred stock
($8 par value) arid 450,000 shares
(Aug.

Each
is

of

A

The

stock.

stock

preferred

into

shares

two

of

common.

offering

units

and

the

to

common

share

convertible

class

at

offered

26)

of class A

of

one

made only in
of
preferred

is

share

one

share of class A common,

price of $10

a

The company

to

per unit.
will use the pro¬
a mortgage against

add the balance
funds.
Coral Ridge

general

Properties, Inc. with principal of¬
fices in Fort Lauderdale, Fla., is
engaged in real estate and land
development and sales.

Private Placement

by

Walter E. Heller & Co.
Walter E. Heller & Co. today
(Aug. 27) announced the private
placement with institutional in¬
vestors
of
$13,450,000 of senior
notes

due

$1,550,000

1974.

of

taken down
F.

notes

Oct.

Eberstadt

additional

An

the

will

be

1, this year.
and

Co.

&

Dean

Witter & Co. negotiated the trans¬
actions.

Heller, a major commercial fi¬
nancing and factoring organiza¬
tion, will use the net proceeds
from the private sale to expand
general funds, enabling the com¬
ume

its general

to increase

In

business.

of

six

vol¬

months

ended June 30, 1959 the company
had gross income of $10,698,179

taken from

Board's Index for the week ended
Aug. 15,
increased 6% above the like period last year. In the
preceding
week, for Aug. 8, an increase of 9% was reported. For the four
weeks ended
Aug. 15, a gain of 7% was registered and for Jan. 1
to Aug. 15, an 8%
increase was noted.

According to the Federal

the

and

pany

Nationwide Department Stores Sales Up
6% for August 15 Week

sales

earlier, although they

year ago.

more

than in

all

were

Atlantic

clearances

part of the sales gain

below;

below.

Business Failures Off
Commercial

prevented

Central

and

corresponding week in 1958, production
6.8% below;
shipments were 10.0%

21.2%

week

had

Bradstreet, Inc. Regional estimates
from the comparable 1958
levels by the following per¬
centages: Pacific -f-8 to 4-12; East South Central
4-4 to 4-8; West
South Central -f3 to
-f7; New England, East and West North

in

the

was

The

•

women

of

6.1% below.

with

last

much effect thus
far, except
number of cities in the
strike areas. Auto sales

reporting softwood

Compared with the previous
week ended
Aug. 8, 1959, pro¬
duction of
reporting mills was 1.5%
below; shipments were 6.7%
below; new orders were

Compared

of
not

2% to 6% higher than
estimates collected by Dun &

National

week new orders

42% of gross stocks.
mills, unfilled orders were
equivalent to
current

to

Unfilled orders

to

end

East

varied

mills

were

the

Aug. 19

Lumber Shipments Down
10% From 1958 Week
Lumber

at

those of last year

over

Unusually hot weather in the

in

expected

are

ceeds to prepay
the company and

v

and

clothing, a step
in Fall women's and junior
apparel sales, and back-to-school

up

Costs

extending and

company,

public

of
incurred

loans

facilities

amount

The

represents

the sum total of the
price per pound
foodstuffs and meats in general use.
It is not a costof-living index. Its chief function is to show the
general trend
of food prices at the
wholesale level.
of

bonds,

$30,500,000

■

1959 for

year

this

Fractionally

The

strike

the

than

decrease

small

compared with 13,000 bales last week and
53,000 bales

Institute.

In

higher
a

31, 1958. Exports
approximately 20,000 bales,

promotions continued to boost retail sales
in most parts of the
country.

of

this

up

during the week that there

The amount of electric
energy
power industry for the week
estimated at 14,003,000,000

were

were

bank

additions.

enlarging

Soybeans

steady.

of 8,908,000 bales at the
end
compared to 8,737,000 bales on
July

as

in the week ended

year

and

mills

cocoa

carryover

a

July 31

1958, the American

Electric Output 12.1% Above 1958
Week

•

on

week, spot cotton prices showed

The

was

was

are based on the
weekly survey of 34 metro¬
conducted by the ATA Research
Department.
The
tonnage handled at over 400 truck
terminals of
carriers of general freight
throughout the country.

and

first

offering
price of 100%.

repay

week

previous week.

to

such

full

cent.

a

a

•

for

reflects

common

the

last

price by very small amounts.

Both futures
the

over

week.

1958 Week

ended

0.2%.

politan

down

this week than last but
prices held

Inc., announced Aug. 21. Truck
tonnage
less than 1% ahead of that
of the previous week of
this

These

277.24

Receipts of cattle at Chicago during the
past week were
the largest in about two
months.
Live choice steers remained
at last week's prices.
Hog prices were up over the prior week
with small receipts
reported. There were 20% fewer lambs offered

freight for the week ended Aug. 15, 1959,

Trucking Associations,
was

plans

ago.

down fractions

Co.

mortgage

short-term

of the slowest v/eeks of

transacted.

this year is run¬

Intercity Truck Tonnage 17.3 Above
ahead

with

Electric

The net proceeds from the sale
will be used by the
company for

and

week

543,844 cars, the Association of American Railroads
announced Aug. 20.
This was a decrease of
82,470 cars, or 13.2%
below the
corresponding week in 1958, and a decrease of
206,796
cars or 27.5% below the
corresponding week in 1957.
Loadings in the week of Aug. 15, were
11,540 cars or 2.2%
above the preceding week.
It is estimated that about
160,000
additional cars would have been
loaded in the current week if
there had been no steel strike
Coal loading amounted to
98,751 cars, a decrease of 13,369
cars below the
corresponding week a year ago, but an increase
of 4,525 cars above the
preceding week this year.

17.3%

year

24, compared

&

costs of additions to its properties.
Initially Pacific Gas and Electric

was
little buying of
bakery flours and semolina last
only moderate activity in family flours. Prices were
slightly below a week ago at the close. Rice showed a
modest
drop in price although mills readily bought
up new crop Zenith
and Century Patna.
Stocks in domestic channels remain
light.
Raw sugar prices rose a few cents over
those of the previous
week despite an
easing off at the end of the week. Possibility
of
a
strike by dockworkers next
month will
strengthen the
market, in the opinion of some traders.
Spot prices on coffee
remained unchanged from week to
week, with a fair volume

building picked up a bit in the week ended
Aug. 22,
Ward's said, as
Willys Motors and International Harvester re¬
activated their plants
following two-week vacation closedowns,
and Dodge increased
output.
Ward's counted 15,560 truck com¬
pletions for the week, compared to
11,064 last week and 8,895
units during the same week last
year.

truck

August

on

one

were

also

week

model

Truck

Intercity

rye

were

scheduling was
Packard, beginning Thursday, Aug. 30.
Imperial
model manufacture last week.
Chrysler's new Plym¬

Loading of

the issue at

States, while the most marked rise appeared

There

going

company

outh-Dodge plant at St.
through "pilot" models.

1

and

trading this year, grain prices
only fractions of a cent from day to day. At the close,
was
unchanged from last week while barley, oats, corn

wheat
and

-

new

77,

Commodity Price Index, compiled by Dun & Bradstreet,

276.68

one

moved

assembly by General Motors

car

was

276.30

was

Chevrolet will have built 2.300 Corvairs at
Willow Run, Mich., in the
Aug. 24 week, the first of the Big
Three in the auto
industry to attain volume output of their new

Another

from

Sharp declines in the prices of eggs and potatoes, together
with a slight easing of prices of most
grains, brought the general
commodity price level down from one week ago.
The Daily

and

units

Meanwhile, Ward's said, production

Studebaker

80

Wholesale Commodity Price Index
Shows Moderate Decline

beginning to rumble.

only

to

up

-

model run.
Other Ford Motor
activities in the week
beginning

the

Middle Atlantic,

Gas

refunding

5% series EE due June 1, 1991.
The
underwriters bought
the

in the South Atlantic States.

21 to change¬
Ford Division

lines

'59

was

bonds at competitive sale
yester¬
day by bidding 99.36% for the in¬
dicated coupon and are

including the

and

the Pacific, up to 67 from 60.
Regional trends from last year's
level continued to vary, with mild declines in five areas
offsetting
increases in four. The most noticeable downturn from 1958 was in

the Middle Atlantic

plants at Kansas City, Los Angeles and San
Jose, Calif. The Lincoln-Thunderbird factory at
Wixom, Mich., also completed its

compact cars. This
in that week.

an

Pacific

week last year,

building

25,918 cars had been built.
Closing down their assembly
over

In the

Blyth & Co., Inc. is manager of
underwriting syndicate which
offered publicly
yesterday (Aug.
26)
a
new
issue
of $65,000,000

45,

More

increases,

changeovers, Ward's Automotive

same

Thursday, August 27, 1959

.

Most of the week's decline was concentrated in the East North
Central States where casualties fell to 34 from 63. In
addition, there
were slight dips in
the New England, East South Central and
Mountain States. On the other hand, four
regions reported mild

U. S. auto manufacturers
dropped to their lowest weekly
volume in 11 months in the week ended
Aug. 22, as more assem¬
bly plants shut down for model

Reports said.

from
43.

a year ago in
manufacturing and construc¬
tion, but other groups had slightly lower mortality than in 1958.

1960 Models

on

lines,

.

Blyfh Group Offers

businesses failed than

81.1.

was

other

lifting manufacturing casualties to 51
wholesaling to 27 from 22, and construction to 45 from

of capacity during
1959. The per cent of

.

Pacific Gas 5% Bonds

among

prevailed

steelmaking facilities

of 41.7%

average

year's level of 247. Liabilities ranged
failing concerns, as compared with 23

above $100,000 for 19 of the
in the previous week.

Industry

Continued from page 5

not reach their last

Chronicle

department

store

and net income of
record

$2,058,727, both

figures.

Heller, founded in 1919, has it3
headquarters in Chicago, main¬
tains

offices

in

New

York

and

Atlanta, and has subsidiaries
Chicago and Los Angeles.

in

City for the week ended Aug.
the

like

increase

period
was

ended Aug. 15 a 4%
gain over the
and Jan. 1 to Aug. 15 showed a

last

same

4%

year.

reported.

15 a 1% loss
In the preceding
the four weeks

For

period in 1958

was

recorded

increase.
p

James C. Myers
James

C. Myers, First Albany
Corporation, Albany, N. Y., passed
away on

July 26.

.

.

.

■

Volume 190
:

,

Number 5876

.

.

The Commercial and Financial Chronicle

.

(853)

\

V •

-

28

•
^

\

The

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON AND

STEEL

Indicated Steel operations
Steel

ingots and

AMERICAN
-

Crude
42

and

Gasoline

.«

output
output

Month

Week

Ago

(bbls.

5343,000

-

1,715,000

OF NEW YORK—As of

6,788,975

6,858,275

6.838,935

Domestic

7,946,000
28,419,000

7,713,000

Domestic

1,598,000

Aug. 14

12,024,000

1,436,000
12,415,000

Aug. 14
refineries, bulk terminals, in transit, in pipe line
Finished and unfinished gasoline (bbls.) at
Aug. 14
Kerosene (bbls.) at
Aug. 14
Distillate fuel oil (bbls.) at
Aug. 14
Residual fuel oil (bbls.) at
Aug. 14

5,973,000

6,153,000

Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

12,701,000
6,563,000

Dollar

1,950,000
11,628,000

on

Revenue

goods

stored

foreign countries

183,104,000
29,473,000

183,481,000
29,004,000

189,859,000
28,232,000

176,487,000
27,018,000

147,907,000

1*2,994,000

129,352,000

127,767,000

55,525,000

*56,375,000

54,269,000

67,165,000

CASH

U.

U.

Month

—

of

532,304

585,070

484,596

469,892

517,535

$377,900,000

$412,400,000

$651,700,000

$373,030,000

Aug. 20

210,300,000

230,200,000

237,300,000

161,376,000

Food

167,600,000

182,200,000

414,400,000

211,662,000

Cereal and

Aug. 20

83,300,000

150,500,000

84,300,000

31,700,000

383,400,000
31,000,000

166,401,000

Private

■!.

Public

Month
All

construction
construction

State

and

municipal

COAL OUTPUT

(U.

S. BUREAU

SYSTEM—1947-49
EDISON

ELECTRIC

Electric output
FAILURES

7,145,000

*6,805,000

7,270,000

8,045,000

Aug. 15

341,000

368,000

354,000

397,000

100

=

Aug. 22

:
INDUSTRIAL)

DUN

—

steel

Pig iron

METAL

(per lb.)

PRICES

(New

Lead

(St.

tZinc

(E.

&

York)

M.

Straits

J.

MOODY'S

BOND

.
.

263

269

245

$66.41

$66.49

$39.83

$39.83

$39.50

$41.83

29.600c

29.500c

26.100c

Medical

28.800c

27.325c

25.350c

Personal

;

.

ZZ

12.000c

12.000c

12.0C0c

10.750c

Reading and recreation

11.800c

11.800c

11.800c

10.550c

Other

11.500c

11.000c

11.000c

11.000c

10.000c

Aug. 19
Aug. 19

24.700c

24.700c

24:700c

24.700c

102.625c

101.750c

102.250c

94.250c

Aug. 25

at

York)

82.56

83.48

83.81

90.34
92.64

Aug. 25

85.85

86.11

85.85

25

89.78

"89.92

89.37

87.86

87.99

87.86

COTTON
To

85.33

85.85

MERCE):

(running

85.46

92.79

81.29

81.29

85.98

84.81

84.94

89.64

85.07

85.46

84.94

92.64

All

87.99

88.27

87.86

96.07

Durable

Aug. 25

4.24

4.13

4.10

3.37

———Aug. 25

4.72

4.70

4.72

4.23

All

Aug. 25

4.43

4.42

4.46

3.92

Durable

4.57

4.56

4.57

4.05

Nondurable

4.72

Group

LABOR—Month of

—

.

-

;

128.0

150.2
-

143.9

130.7

128.0

118.1

117.8

116.7

128.4

127.2

OF

COMMERCE):

bales)

151,444

(DEPT.

bales)

OF

of

as

212,569

14,815,000

11,435,323

COM¬

Aug.

1__

4.76

June:

Z
$90.09

*99.36

80.00

*79.40

40.4

♦40.7

40.8

*41.4

39.4

39.8

Z

goods

*$91.17

97.51

.

goods

*39.7

39,0

Hours—

manufacturing

_(l

goods

;

ZZ

goods

ZZZZ

$83.50
»

,

89.83

75.66
39.2

Hourly earnings—

4.75

4.22

.Aug. 25

5.11

5.08

5.08

"4.71

$2.24

4.82

4.80

4.79

4.44

Durable goods

$2.33

.Aug. 25

2.39

*2.40

2.28

.Aug. 25

4.78

4.75

4.79

4.23

Nondurable

2.01

*2.00

1.94

.Aug. 25

4.56

4.54

4.57

4.00

.Aug. 25

385.6

382.9

379,7

392.3

Aug. 15
Aug. 15

298.923

366,851

278,124

261,628

325,729

336,991

274,741

294,259

—Aug. 15

96

98

84

93

Aug. 15

551,214

578,875

565,951

439,249

Aug. 21

109.40

109.42

110.80

108.73

.Aug. 25

„

Baa

Railroad
Public

Group

Utilities

Industrials

MOODY'S

—

.—.—

—

.

Group.

Group

COMMODITY

INDEX

-

(

All

Orders received
Production

(tons)-

—

—

(tons)

*

activity

Percentage of
Unfilled orders

—

(tons) at end of period

1949

AVERAGE

FOR

ACCOUNT

Short

sales

Other

sales

Savings
2,442,080

-321,470

590,890

1,938,740

Total

Miscellaneous

sales

Other

sales

Total

sales

sales

Other

2,162,920

2,529,636

360,650

335,530

318,670

568.629

40,400

12,400

25,400

364,760

346,560

324,170

sales

—

sales

Other

sales

537.630

358,960

349,570

721,752

635,090

822,620

113,870

123,970

81,960

208,230

759,137

,75.3,172

664,246

789,742

Production

July 31

873,007

877,142

746,206

997,972

INC.—Month

—July 31
—July 31

July 31

Odd-lot

sales

Number

Dollar

dealers

by

EXCHANGE

(customers'

3,451,130
564,290

3,522,972
508,380

428,830

3,158,087
3,732,377

3,113,692
3,622,072

2,829,866

3,863,320
833,420
3,231,812

3,258,696

4,065,232

2,962,760

value

by dealers

Customers'

Y.

Customers'

Tractor

Tires

$2,150,817

8,885,554
9,022,197
16,134,426

6,852,721

7,305,754

15,721,389

17,464,550

1,834,992

1,736,861

].571,175

—

-

$98,212,654

$92,082,884

$86,848,352

$68,972,997

1,317,297

.

1,596,284

1,351,916
1,271,797
2,953,973

.___

Implement Tires

Tubes

1,520,845

8,504,133

8,117,358

(Number of)—

1,221,535
943,368

1,113,247

3,005,897

3,455,867

987,543

(Number of)—

:_

353,746
344,794

(Number

Truck

of)

and

Bus

345,747

334,286

222,569

294,512

679,204

-1

Inventory
Passenger Motorcycle,

660,875

657,058

Inner

—

Shipments

total sales

July 31
July 31
-July 31
—July 31

1,546,095

1,510,654
4,869

5,432

1,541,297

1,505,735

$80,042,388

$75,231,473

1,311,865
$67,045,349

3,275,370

3,683,192

2,752,413

3,476,034

Inventory

6,999,506

6,849,064

8,156,429

Tread

12.55C

1,583,726
$70,358,060

4,798

3,871,509

Production
Rubber

Shipments
Inventory

381,920

347,730

sales

378~030

38L920

347^730

555Z590

purchases by dealers— Number of shares

July 31

672,830

.614,640

590,290

(pounds)

450.250

43,428,000

(pounds)

37,296,000

39,524,000

45,434,000
_

35,504,000

41,553,000

27,163,000

25,316,000

30,515,000

$87,465,592

(pounds)

555,590

sales

Other

July 31
July 31
July 31

378,030

Short

3,601,590

(Camelback)—•

Production

dealers—

by

Bus

Production

(customers' sales)—

value

sales

and

"

—

Shipments

July 31
July 31

other sales

Dollar

$2,775,681

of) —

———_

Production

STOCK

short sales

Round-lot

282,685
372,607

ASS0CL4TI0N

Shipments

COMMISSION

.

orders—Customers'

of

N.

—

Odd-lot purchases

333,073
502,096

June:

(Number

_——

Inventories

purchases)—t

shares

of

Number

ON

SPECIALISTS

AND

SECURITIES

339,218

$2,768,402

of

Passenger Tires

T:uck

——July 31

-

—

112,854

492,202

institutions

Inventory

———.—

.————

DEALERS

119,834

Shipments

sales

EXCHANGE

418,081

124,498

—

660,150

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

553,028

———-----140,212

——___

lending

Total

405,160

—

Total purchases

banks

RUBBER MANUFACTURING

for account of members—

transactions

$1,148,193
114,793

$844,756

111,785
534,369

companies—
___.

—July 31

,

._.

Short

savings

-July 31
—July 31

—u—

—

—

round-lot

—Mutual

—July 31

_—

BANK

omitted):

associations

503,330

-

the floor—

on

NONFARM

LOAN

(000's

34,300

——July 31

-

sales

Total

2,385,970

;

Short

Total

2,454,210

——

purchases

Total

2,013,960

1,841,450

—July 31
—■————July 31

—;

.

.

transactions initiated

Total

410,020

2,044,190

trust

125

floor—

purohases

Short

Other

the

off

May

134

155

$1,150,616

IN

HOME

—

of

Individuals

July 31

•

initiated

S.

155

144

companies

and

2,009,000

.July 31

L.

transactions

Banks

2,465,690
372,010-

.July 31
Other

U.

loan

and

Insurance

2,430,330

153

FINANCING

OF

BOARD—Month

July 31

—

July:

.

ESTATE

AREAS

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
Total purchases..

of

Unadjusted

MEM¬

OF

$2.23

SYSTEM—1947-49=100—Month

REAL

100

=

TRANSACTIONS

:

goods

Seasonally adjusted

GIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

manufacturing

INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS
OF
THE
FEDERAL
RESERVE

NATIONAL PAPERBOARD ASSOCIATION:

Number

TOTAL

shares—Total

of

Round-lot

Total

STOCK

ROUND-LOT

EXCHANGE
FOR

round-lot

sales

SALES

OF

ON THE N. Y.

MEMBERS

STOCK

—

Ne4-

—

U.

621,930

22,962,574

4.413,833

4,123,886

107,543.277

98,022,587

62,850.187

a

76,049.263

66,615,236

31,173,707

71,705,024

62,365,375

27,291,070

50,916,262
33,685,030

50.912,976

50,248,915

33,010,739

9,743,343

30,616 340

24,833,139

33,095,412

4,670 310

733,331

4,571,417

3.12

1.98

$9,969,500

$58,167,000

available

18,458,120

Income

after

15,825,260

15,521,840

13,675,720

19,552,171

Other
Net

»

foods

—

119.3

*119.2

87.9

*87.2

Aug. 18

106.8

106.1

'

119.3

118 8

88.2

£3.0

107.0

l-"0.7

-Aug. 18
other

than farm

and

96.9

95 O

98.4

108.1

Aug. 18

foods

deductions

Income

Aug. 18

commodities

$44,011,499

29,099,096
102.436,420

1,094,CSC

Aug. 18

Meats

All

$82,337,324

434,010
13,181,710

S. DEPT. OF

products

Processed

128.3

♦128.4

128.1

fixed

flrure.

1959,

as

Monthly Investment Flan.
one-half cent

a

936,000

against Jan. 1,

pound.

...




barrels

of foreign

income

charges

charges

deductions

Federal

income

4,344,239

._

income

1

taxes

a

—

Dividend appropriations:
On common stock
On

preferred

stock

—

Ratio cf income to fixed

charges

3 41

4,249,861

66,974.073

3,882,637

125.9

§Based on new annual capacity of 147,633,670 tens
tNumber of orders not reported since introduction of
t Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

fllncludes

from

fixed

for

TREASURY MARKET
♦Revised

of Jan. 1,

income

24,179,466

576,510
14,945,330

100):

commodities.

Farm

CLASS I

111,645,058
4,101,781

15,203,330

Commodity Group—
All

S.

income

Miscellaneous

=

OF U.

income

Total

.July 31
July 31
July 31

< 1947-49

railway operating

Other

sales—

WHOLESALE PRICES, NEW SERIES
LABOR

ITEMS

(Interstate Commerce Commission)—
of May:

Month

(SHARES):

sales

Total sales

RYS.

STOCK TRANSACTIONS

sales

Other

SELECTED INCOME

Depreciation (way & structure & equipment)

ROUND-LOT

AND

ACCOUNT

Short

as

187.7

192.7

150.6

131.1

'

129.2

manufacturing

Nondurable

-

192.7

Weekly earnings—

MOODY'S BOND YIELD DAILY AVERAGES:

-

iU.i 138.9

134.5

98.5

129.8

EARNINGS AND HOURS—WEEKLY
AVERAGE
ESTIMATE—U. S. DEPT. OF

80.93

—:

Aaa

91.9

145.4

108.8
>

FACTORY

84.55

U. S. Government Bonds-

(DEPT.

PRODUCTION

25

—

.

92.1

134.8

services

(running

Aug. 25
Aug. 25
Aug. 25

—.—

.

Aa

1

Aug. 25

Group

Average corporate

GINNING

Aug.

COTTON

95.32

Aug

y

133.5

106.7
'

••

»

97.31

Aug. 25

—

-

—-.

Z

99.0

10.500c

AVERAGES:

DAILY

and

108.2

91.8

Z_ZZZZZZZZZZ
ZZZZZZZZZZZ

care

131.1

107.3

98.9

ZZZ_

104.1

133.8

108.1

ZZZZ ZZ
ZZZZZZZZZ

care

11.500c

11.500c

131.7

103.7

107.3

;

Aug. 19
at

137.7
116.9

135.3

134.5

girls'

Aug. 19

99.5%)

139.3
118.7

145.7

and

Aug. 19
at

110.9

"mi

104.1 •' '

boys'

goods

128.8

133.9

ZZZZZZZZZZ—ZZZ

29.600c

115.2

133.9

ZZZZ" ~Z
ZZZZ
Z
ZZ

Public

28.650c

102.8

139.5

I

oil

Transportation

Aug. 19

134.3

119.3

fuel

apparel

Aug. 19

Baa'ZZZZIIII——Z.ZJZZZZZZZIZ.ZZZ Aug.

A

and

111.7

115.6

1953=100)

electricity

fuels

Footwear
Other

-.Vf.j

;,v

Aa

Industrials

(Jan.

112.6
125.6

102.3

:

from home

Men's and

$66.41

Aug. 19

Aaa

Utilities

118.3

112,3
134.5

1111111

home

::::::::::::::::
and

,

Average corporate

Public

111.6

vegetables
at

away

—

.

PRICES

Group

132.9

111.6

Apparel

272

$66.41

U. S. Government Bonds-

Railroad

134.5

Housefurnishings

6.188c

,

120.4

134.2

ZZZ_

128.9

and

Gas

12,486,000

6.196c

at

(New

13,577,000

—Aug. 18

QUOTATIONS):

121.6

115.2

Private

(primary pig.

tin

13,648,000

6.196c

at

(East St. Louis)

Aluminum

14,003,000

6.196c

at

Louis)

(delivered)

Zinc

124

Aug. 18

Electrolytic copper—
Domestic refinery at
Export refinery at
Lead

118

Aug. 18
—

123.7

117.7

116.6

bakery products

food

Women's

(per gross ton)—_

124.0

118.9

ZZZZZZZZZZ_ZZZZ

Household operation

(per gross ton)

Scrap steel

131

PRICES:

Finished

124.5

Food

&

Aug. 20

COMPOSITE

AGE

$806,600

::::::::::::::::::::

Rent
132

Aug. 15

(in 000 kwh.)

$1,821,100

INDEX- -1947-1949=100—

at home

Solid

AND

OF

Housing

INSTITUTE:

(COMMERCIAL

BY

(000's

of June—

Other

.Aug. 15

BRADSTREET, INC
IRON

45,261,000

INDEX—FEDERAL RESERVE

AVERAGE

250,722,000

items

Fruits

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)DEPARTMENT STORE SALES

PRICE

Food

MINES):

OF

June

Meats, poultry and fish
Dairy products

CONSUMER

ENGINEERING

—

255,849,000

$983,074,000 $1,353,364,000

626,314

483,610

Aug. 20

CONSTRUCTION

22,488,000
290,371,000
140,950,000

379,737,000

$852,900

543,844

construction

S.

111,350,000

omitted)

RAILROADS:

Aug. 20

ENGINEERING

84,940,000
253,216,000

DIVIDENDS—PUBLICLY REPORTED
S. CORPORATIONS—U.
S. DEPT.

COMMERCE

NEWS-RECORD:
Total

19,498,000

$957,097,000

.Aug. 20

CIVIL

$269,096,000

13,725,000

"shipped""between

and

Total

freight loaded (number of cars)
;
Aug. 15
freight received from connections (no. of cars)—Aug. 15

.Revenue

$255,568,000
327,084,000

12,610,000

I

6,897,000

at

AMERICAN

$258,737,000
333,894,000

7"
ZZZ

credits

exchange

Based

27,577,000

Year

13,700,000

~Z*"~~~

warehouse

Ago

Previous

BANK

July 31:

shipments

7,836,000
28,167,000

1,939,000

of that date;]

Month

OUT-

RESERVE

:::::::::::::::::

6,822,575
29,077,000

OF

ACCEPTANCES

FEDERAL

—

117,950,000

Aug. 14

ASSOCIATION

DOLLAR

STANDING

Aug. 14
Aug. 14

are as

Latest

BANKERS'

Imports
Exports

(bbls.)...

Stocks

63.5

—Aug. 14

(bbls.)

of quotations,

cases

either for thi|

are

Month

of

.

.

average

in

or,

Ago

«•

345,000

*321,000

Dates shown in first column

that date,

on

production and other figures for the

cover

Year

12.2

*11.3

(bbls.)

Kerosene

month ended

_

Aug. 29

output—daily average

to stills—daily

runs

month available.

INSTITUTE:

condensate

gallons each)

Crude

Previous

§12.1

Aug. 29

or

or

/': '

,_i
(net tons)

castings

PETROLEUM

oil

Week

INSTITUTE:

(per cent capacity)

Equivalent to—

^

following statistical tabulations

cru 'e

1958 basis of 140,742,570

runs.

tons.

RECT
OF

Net

U.

AND

TRANSACTIONS

GUARANTEED

8. A.—Month

purchases

IN

DI¬

SECURITIES

of July:
$32,194 900

30

(854)

The Commercial and Financial Chronicle

Securities

Now

Abbott-Warner Co., Inc.

American

estimates and to submit bids, as a prime con¬
specialized construction projects. Underwriter

prepare

tractor

Securities, Inc., 605 Park Bldg., Pittsburgh

Missiles & Construction
Corp. (9/11)
July 24 filed 200,00C shares of common stock (par 25c),
of which 150,000 shares will be offered for public sale

for the account of the company, and 50,000 shares will be
offered for the accounts of the present holders thereof.

Price—$6

share.

per

including

purposes,

Proceeds—For

additional

general

corporate

office

personnel,

space,

equipment, and the provision of funds necessary to
compete for certain contracts. Office—2949 Long Beach
Road, Oceanside, L. I., N. Y.
Lomasney & Co., New York.
•

Aid

Investment

Underwriter

—

addition filed 150,000 shares of common
stock. Price—To 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 &
Curtis, New York.
Alaska Mines & Metals

Inc.
Feb. 25 filed 1,431,200 shares of common stock
(par $1),
of which 1,000,000 shares are to be offered
publicly and
431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued
by DeCoursey-Brewis

the company's parent

(payment for the
shares by such debenture holders
may
be made by
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

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. Office—423 Fourth Ave., Anchorage,

per

Alaska.
•

Underwriter—To be named by amendment

Albertson's, Inc.

(9/14-18)

Aug. 13 filed 300,000 shares of class B (non-voting) com¬
mon stock
(par $1) of which 200,000 shares will be pub¬
licly offered and 100,000 shares will be offered to com¬
pany

personnel. Price—To

be

supplied by amendment.
Proceeds—For general corporate
purposes including the
outfitting of new supermarkets. Office—1610 State

Boise, Idaho. Underwriter—J.
City and New York.

St.,

A.

Hogle & Co., Salt Lake

Aldens, Inc.
July 21 filed $4,550,600 of 5% convertible subordinated
debentures, due Aug. 1, 1979, being offered to common
stockholders of record AGg^
14, 1959 on the basis of $100
of debentures for each 16
common
shares then held;
rights to expire on Aug. 31; debentures
convertible
into

common

stock at $38.50
per

share.' Office—Chicago,

111. Price—At par.
Proceeds—For general corporate pur¬
poses. Underwriter—Lehman
Brothers, New York.

Allied Colorado Enterprises Co.
July 13 filed 5,899,618 shares of
:

class A

apd 551,140 shares of class

stock

common

A-l

common stock for issu¬
under
outstanding subscription agreements at 75
cents per share and
6,576,200 shares of class A common
stock for issuance under
outstanding option agreements
at 25 cents per share. These
securities will not be is¬
sued if the options and
subscription agreements are not
exercised.
Proceeds—For
ance

working capital and surplus

of subsidiaries

\

and for general
corporate purposes.

Un¬

Proceeds—For

gen¬

derwriters—Allen Investment
Co., Boulder, Colo.
Allied Colorado Enterprises Co.
July 13 filed 3,000,000 class A common stock
(par 25
cents). Price—90 cents per share.
eral corporate

purposes.

Office—Boulder, Colo.

Under¬

writer—Allen Investment
Co., Boulder, Colo.
•

Allied

Petro-Chemicals, Inc. (9/16)
July 14 filed 100,000 shares of class A
common
stock
(par 10 cents). Price—$4 per share.
added

Proceeds—To

to

company

funds.

Underwriter—Philadelphia
delphia, Pa.

Office—Overbrook Hills, Pa.
Securities Co., Inc., Phila¬
'

'

,

be

American Beverage
Corp.

filed 950,000 shares

of common stock. Proceeds
exchanged for all the outstanding
capital stock of a
group of "Golden Age" companies,
btockholders on Aug. 10
approved the exchange
offer,
and yoted to increase
the number of
outstanding shares
from 250,OOO to
2,000,000. Office-118 N. 11th
St., Brook¬
lyn, N. Y. Underwriter—None.
mu

st°ck is

to be

American Buyers

E6v'J\
of which
for

/tied 5,000,000

4,545,455 shares

public sale

issued

^ jC]T
and

Credit Co.

or

are

at

$1.75

issuable

shares of

of this stock
per

under

share.

common

are

stock,

to be offered

[Shares have been

agreements

with

various

s in American Buyers Life Insurance Co.
American Life Assurance
Co. (both of
Phoenix) per¬
mitting them to purchase stock at
$1.25
per

share.

Sales

Ye been Siven the right to purchase stock
$1.25 per share up to the
amount of commission
they
receive on stock
sales made by
them.] Proceeds—For the
offices, both in Arizona and

?J?er?/10n ! oth^branch
a" £
*tates- 0ffice ~ 2001
4.

Ariz.

•

Underwriter—None.




American

June

25

of

3

Eas* Roosevelt, Phoenix,

nine

snares

Massillon

of

cattle;
stock (par $2) to
oi Masaiilon

of

common

None,

•

Proceeds—To

and

Price—

stock.

common

assume

option
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
company $50,000; to construct and place in working oper¬
ation a mine, mill and accessories
capable of processing
pay

an

100

tons of

gold

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

ore

the

and

per

United

States.

Office

Southwest Building, Houston, Tex.

Bank

—

of

the

Underwriter—None.

it American Mutual Fund, Inc.
Aug. 24 filed 500,000 additional shares of capital stock.
Proceeds—For investment. Office—Los Angeles, Xalif.
American &

St. Lawrence

Seaway Land Co., Inc.
July 8 filed .500,000 shares of common stock (par $1).
Price—$3
for

and

share.

per

Proceeds—To

off

pay

mortgages

general

corporate purposes. Office — 60 East
42nd Street, New York.
Underwriter—A. J. Gabriel &
Co., Inc., New York.

American States Insurance Co. (9/15-30)
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

Aug.

adidtional

one

and

class

—To

be

added
542

B

share

stock

supplied

to

the

North

for

held

by

each
as

of

four
the

amendment.

general

funds

of

shares
record

~

of

date.

Proceeds

the

class

company.

—

A

Price
To

be

Office—

Meridian

Street, Indianapolis, Ind. Under¬
writer—City Securities Corp., Indianapolis, Ind.
Ampal-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 1C0% of principal amount. Proceeds—To
develop and
expand various enterprises in Israel. Office—17 E. 71st
Street, New York. Underwriter—None. Offering—Ex¬
pected sometime during August or
September.

Apache Oil Corp.
May 25 filed 350 units of participation in the "Aparbp
Oil Program 1960 and
70,000 rights for the purchase of
common stock (par
$1.25). The offering is being made
only to the stockholders of the company. Each
subscrip¬
tion to a unit in
Apache Oil Program 1960, will entitle
the
subscriber to subscribe also1 to 2Q0 .rights for the
purchase of

one
share per right of the
company's $1.25
value cojnmon stock. Warrants evidencing
tftp' rights
will be nontransferable
prior to Aug. 16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962. Unless
Apache Oil Program 1960 commences operations on or
before June 30, 1960, all unexercised
rights will be void

par

of

2:00

price

will

as

p.m.

be

ceeds—For

(CST)

that date, and their purchase
Price—$12,000 per unit. Pro¬
corporate purposes.
Office —523
on

refunded.

general

Marquette Avenue, Minneapolis, Minn.
APA, Inc., the corporation's subsidiary.

Underwriter—

'

Apache Realty Corp.
Aug. 13 filed $1,500,000 of 6% subordinated debentures
and 360,000 shares of common
stock (par $1). Price—
$6,200 pep 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 real estate dealings. Office— '
523

Marquette Ave., Minneapolis, Minn.
Underwriters—
The issuing
company and its subsidiary, The Fund Corp.

of

Minneapolis.

Arapahoe Chemicals, Inc.
Aug. 3 (letter of notification) 13,000 shares of

purposes.

Underwriter

-

President.;/
■,

•

—

.

•;/ :,

Xx

par

filed

Engineering, Inc..

100,000

be

supplied

by

S-*v

;

cf.capital stock

snares

amendment.

(par ,$1).

Proceeds—For

•.

corporate purposes
including the reduction of
loans, 'for additional working capital, and the
carrying of larger inventories.r. Office—1640 Monrovia
Avenue, Costa Mesa, Calif. Underwriter—Schwabacher
& Co., San
Francisco, Calif. Offering—Expected in Sep¬
bank

tember.

,,'

Bankers Preferred Life Insurance Co.
Jan. 30 (letter of notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3
per share.
Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, ,Cc'~.

Underwriter—Ringsby

Underwriters,

Inc.,

Denver

Colo.

2,

Basic

Materials, Inc.
(letter of notification) 1,200,000 shares of

April 9

com¬

stock

mon

(par 10 cents). Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.

Roberts,

President, Arroyo Hondo, Santa Fe, N. Mex.
Hyder, Rosenthal & Co., Albuquerque,

Underwriter

N. Mex.
•

—

Letter to be

BeSco

amended.

Petroleum

Corp.

(9/21-25)

Aug.

14

nated

debentures, due 1974, and 400,000 shares of

stock

(par $1)

ing

of

filed

$36

stock.

$7,200,000

—

For

—

5.83%

convertible

subordi¬
common

to be offered in units, each unit consist¬
debentures and two shares of common

of

Price

ceeds

of

To

be

general

supplied

corporate

by

amendment.

purposes,

Pro¬

including

payment

re¬

of all existing debts to banks. Office
630
Ave., New York. Underwriters—White, Weld &
and Goldman, Sachs & Co., both of New York.
—

Third

Co.,

it Bell & Howell Co.

Aug. 12 (letter of notification) 4,800 shares

of

common

stock

to

directly

(par

franchised

$5)

be

to

issued

as

authorized retail

or

salespersons. Office—7100
111. Underwriter—None.

award

an

or

wholesalers and their

McCormick

Rd., Chicago 45,

X
Berens Real Estate Investment
Corp.
July 31 filed $1,200,000 of 6Vz% debentures; due 1969,
.

and

80,000 shares of common stock (par $5). Price—$500
unit, each unit to consist of $300 of debentures and

per

20 shares of

common

stock.

Proceeds—For

working

ital. Office—1722 L Street N.
W., Washington, D. C.
derwriter—Berens Securities Corp., same address.

cap¬

Un¬

Beverages" Bottling Corp.
/ •
\
^ X v
July 6 (letter of notification) 300,Q00 shares of common
stock (par JO cents).
Price—$1 per share.
Proceeds—
For

construction or purchase of additional facilities for
the manufacture, warehousing and distribution of bever¬

Office—800 St. Anns Avenue, Bronx, N. Y.
Un¬
Management, Inc.. 11 Broadway,
New York, N. Y. The offering is expected
any day.
;

ages.

derwriter—Financial

Pojstic

Concrete

Co.,

Inc.

June 19 (letter of notification)
debentures due
common

stock

$250,000 of 8% convertible
July 1, 1969 and 10,000 shares of class A
(par $1) to be offered in units of one

$500 debenture and

20

shares

of class A

stock.

common

Price—$600 per unit. Proceeds—To pay obligations and
for working capital. Office — 1205 Oil Centre
Station,
Lafayette, La. Underwriter—Syle & Co., New York, N. Y.
The offering is expected
any day.
V*
.

it Bradco

1960 Associates, Inc. ' \
X
Aug. 24 filed $2,500,000 of participating interests under a
Participation Agreement in Associates Oil and Gas Ex¬
,

,

ploration Program. Price—$10,000 per unit.
Proceeds—
For the acquisition and exploration of
undeveloped oil
and gas

properties. Office—Bank of the Southwest Bldg.,
Houston, Texas. Underwriters
The offering is to be
—-

made

on

a

best efforts basis by 2338 Sales, Inc. (an affil¬

iate of the issuing company)

and certain company offi¬
including W. H. Hendrickson, Board Chairman.

cers,

it Brush Beryllium Co. (9/16)
Aug. 20 filed $6,500,000 of convertible subordinated de¬
bentures, due 1974. Price—To be supplied by amend¬
ment!

Proceeds—To

retire

funded

and for general corporate purposes.

P

in

ranch

corporate

general

stop order will be issued suspend¬

held

additional

otner

of

Babcock Rado

July 29

ing the offering.
29

(letter

Price—To

Mart, New Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La. The SEC
has scheduled a hearing, to begin on Sept. 2, which will

June

buy

1SSUI
.

"•
notification) 259,000 shares of common
($1 per share). Proceeds—For plant
construction, contingencies, etc. Office—8 E. Charleston
Blvd., Las Vegas^ Nev.

national Trade

$5 per share.

is

Inc. V

stock. Price—At

American

to

L, Cisco, Texas.

Kamon

Lube,

Aug. 13

($1

Mines, Inc.
filed 150,000 shares of

Avenue

Robert

★ Auto

each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬

a

REVISED

improvements;

Office— 1301

Office—

Underwriter—None.

for

PREVIOUS

Queensland, AusiraJia; and for

American

of

common.

Investors Syndicate, Inc.
600,000 shares of common stock

filed

shares

SINCE

stock

(par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in unite consisting

debt; for expansion;
Office—4301 Perkins

Ave., Cleveland, Ohio.

..

common

of New

Underwriters—Kuhn, Loeb & Co.
York, and McDonald & Co. of Cleveland.

stock

(no par) to be offered for subscription
by stock¬
holders at the right of one new share
for each three
shares held; rights to expire
Sept. 2. Price — $20 per

share.

Proceeds — For capital investment; research and
development and other working capital; Office
2800
Pearl St.^
Boulder, Colo. Underwriter—None.1
—

•

.

at

common

common

of

oasis

share

one

determine whether

in

Minerals Ltd.,

the

on

for

lor

Ridge Avenue, Evanston, 111;
Statement effective July 29.

Myron A.

&

Discount, Inc. (9/14-16)
Aug. 12 filed $1,000,000 of capital notes, 1959 issue, due
Sept. 1, 1974, which will be convertible into common
stock, and

excnange

2020

Acme

Thursday, August 27,1959

.

ITEMS

•

Hospital Supply Corp.

in

Co.

common

22, Pa.
•

ofrerecl

Rubber

on

—Strathmore

Registration

April zO filed 20,6i0 shares of
be

.

★ IN DI CATES, AO D ITION 9

in

Aug. 12 (letter of notification) 62,500 shares of common
stock (no par).
Price—$2.70 per share.
Proceeds—Tor

.

Associates

Aug.
due

11

Investment Co. (9/2)
$50,000,000 of 20-year senior debentures,
1979, not to be subject to redemption for

filed

Aug 1,

the first five years.
Office—South Bend, Ind. : Under¬
writers—Salomon Bros. & Hutzler, and Lehman
Brothers,

both

New

York.

**

.

Australian Grazing & Pastoral
Qo., Ltd.
13 filed 4,000,000 shares of
common stock.
par (56^ cents per share).
Proceeds—To

Jan.
At

of

Bzura Chemical

Aug.

purchase

1979

Co., Inc (9/14-18)
$2,400,000 of 6^% first mortgage

and

a
new plant in
operation in Fieldsboro, N. J. .Office—
Broadway and Clark Streets, KeyporQN. J. Underwriter
—P! W. Brooks & Co., Inc" New York.

•

Cador Production Corp., Far Hills, N. J.
Aug. 18 filed 1,500,000 shares of class A stock (par $1)
and 225,000 shares cf class B stock (60c par).
The 225,000

Price—

12 filed

bonds,
240,000 shares of common stock*" (par 25
cents); to be cdfered in units; consisting of $500 prin¬
cipal amount of bonds and $0 shares of common stock.
Price—$500 per unit. Proceeds—To be used for placing
due

sale,

shares

but

of

may

class

be

B

stock

issued

as

are

not

being

commission

with the distribution of the class A stock.

in

offered

for

connection

Price—At par

X

Volume 190

Numbeir 5876*.

.

The Commercial arid Financial Chronicle

.

in

exchange for "property interests.",'Agent—Dewey &
Grady Inc., Far Hills, N. J. on a "best efforts" basis for

the class A stock only.

California

>.'•

"•

V*'.

,"'.t

Corp.
July 27 filed 2,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—-For construction
of a pilot plant; for measuring-ore; for assaying; and for
general corporate purposes. Office—3955 South State St.,
Salt Lake City, Utah.
Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.
_i... /.

for

any

r'

(Thursday)

August 27

'

'

■

facilities

construct

general

and

equip

corporate

Office—2400

-

-

(Bids

r

$6,000,000

EDT)

noon

R.

(Milton

Staats &

Blauner

D.

No bonds will be reserved for this exchange
Price—100% of principal amount.

but will be initially

ceeds

may

nated

Del.

Co.)

(Friday)

August 28

(Willis

Common

1

t

Hough,

&

Pacific

shares

86,000
Great Western Life Insurance Co
(Beil

.

Inc.)

debentures

...Common

(Offering to stockholders—underwritten by G. J. Mitchell
r
and Purvis & Co.) 500,000 shares

Co.,

Inc.)

I

c

Inc._

V.4
Sta-Rite

Co.

?

•

and

New York--Debentures

(Monday)

August 31

-

(Bids

-—Common

'

•

(Sandkuhl

-

Greek Voice of

Co.,

&

Securities

-

(Bids

.Common
$300,000

Corp.)

'

(R.

Industries, Inc.—-i-~Common
r.
v
(Lehman Brothers) 100,000 shares
Jackson's Minit Markets, Inc.—
Common
(Offering to stockholders—underwritten by Pierce, Carrison

■:.*

Edward

Wulbern,

'

Artists

United
"

(Heft,

Kann

Infante,

&

(Blyth &

Matronics, Inc.
.

Radio

$225,000

(Tuesday)

Central

Corp.

—L_-.

Malkan

(Arnold

Hofman

-

(Myron
•-

•

'"t

'

-

(Salomon

Investment

National

(J.

Investing

General

>■

Corp.)

•
■

*

'■'+

Peabody
/

(P.

&

and

Co.

&

Jesup

(S. D.

Industries Co., Inc
(Dempsey-Tegeler

Wabash RR.

Lamont)

(R.

Dickson

S.

&

(Bids

noon

Co. )

(Hardy

Common

.

240,000

shares

-Common
Redpath)

Co.,

$1,000,000

Inc.)

Common

&

120,000

& Sons)

September

3

Goodbody

H.

Walker

&

Co.)

Monarch

^

Co. i

$1,780,000

Cleveland

(McDonald & Co.)

*...

Common

100,000 shares

Debentures

Corp

Witter & Co.)

Technical

Materiel

Corp

$24,115,000

Common

—

Waddell & Reed,
(Kidder,

(Friday)

.

..Common

Inc.-

Peabody

&

Co.)

80,000

September 15

shares

to

Corp.)

September 8 (Tuesday)
(Myron

Empire

,—

A. Lomasney & Co.)

—

Common

(Eppler,

$600^000

DempseyrTegeier & Co. ) -26tf,000 shares "" ''




108,144

Steak'n
-

:

.Common
shares

$45,000,000

(Tuesday)

Heublein, Inc.

.Common

(Glore,

Porgan & Co.)

425,000

September 29

shares

(Tuesday)

Southern California Gas Co._____
(Bids

8:30

PDT)

a.m.

Bonds

$30,000,000

(Thursday)

Northern Natural Gas Co
(Blyth

&

Preferred

Inc.)

Co.,

$20,000,000

Northern Natural Gas Co

Debentures

Inc.)

$20,000,000

(Thursday)

Columbia Gas System Inc
to

be

Debentures

invited)

$25,000,000

of St. Louis

(Mo.)

Common

(Offering to stockholders—underwritten by G. H. Walker & Co.)
shares

45,000

October 14

Philadelphia

Electric
(Bids

(Wednesday)

Co

be

to

Bonds

invited)

$50,000,000

October

20

(Tuesday)

Southern Bell Telephone & Telegraph Co
(Bids

to

be

invited)

October 21

(Bids

II

Debs.

$70,000,000

(Wednesday)

Western Massachusetts Electric Cos
EDT)

a.m.

October

22

Bonds

$8,000,000

(Thursday)

(Bid3 to be invited)

Common

1,200,000 shares

October

27

(Tuesday)

Florida Power & Light Co.
(Bids

to be

Bonds

invited)

October 28

$20,000,000

1

(Wednesday)

Puget Sound Power & Light Co
(Bids

to

be

invited)

November

Bonds

$20,000,000

-r

-

to

17

(Tuesday)

11

Bonds

a.m.

EST)

$16,000,000

$303,902.50

to

be

(Tuesday)

received)

December 1

Common
by

24

Debens.

$250,000,000

.Common

Inc.) 89,773 shares

stockholders—underwritten

November

American Telephone & Telegraph Co
(Bids

______

Shake, Inc.

(Offering

*

Guelfin & Turner,

Securities

shares

Central Transformer Corp.—

Financial Corp.——————-Common

Co.) $7,200,000

250,000

Gulf States Utilities Co

Common

stockholders—underwritten by City

•

Inc.——1—

Co.)

(Tuesday)

American States Insurance Co

$1,000,000

(Offering

Dynex,

&

September 22

(Bids

Tex-Star Oil & Gas Corp.—-------- -Debentures
(Stroud & Co., Inc. and Auchincloss, Parker & Redpath)
.

Goldman, Sachs &

(Kidder, Peabody & Co., Inc.) 80,000 shares

'

.

(Monday)
Debentures & Common

$600,000

Co.....Common

(Offering to stockholders—no underwriting)

Common

September 4

,

$4,000,000

Southern New England Telephone

(Thursday)

to stockholders—underwritten by Dean
93,594 shades
*

and

American Electric Power Co.

Preferred

Marking System Co

National

-

(Offering

V>-

shares

shares

Common

Corp

and

Co.

Brown

(Merrill, Turben & Co., Inc. and Loewi & Co., Inc.)

Control Data Corp

246,500

shares

60,000

——Common
&

Co. and Alex.

&

(G.

$350,000

$1,500,000

..Common
Inc.)

& Co.,

General Contract Finance Corp

-

—Equip. Trust Ctfs.
EDT)

Co.)

$2,400,000

Inc.)

_—

Palm-Aire

Florida

100.000 shares
-

—Bonds

Fair Lanes, Inc.—.

.—Preferred

-

—

Common

200,000 shares

& Co.)

Parker &

(Alkow

•

United

Notes

Co., Inc

Brooks

W.

Entron, Inc.

1,000,000 shares

218,333 shares

Puller & Co.)

,

England Telephone & Telegraph Co.„Debena.

(Bids

—

(Auchincloss,

$1,000,000

Speedry Chemical Products Co., Inc

&

Podesta

Manchester Bank

(Monday)

Crowley's Milk Co., Inc

—Class A Capital

Salant & Salant, Inc

Common

$1,200,000

Chemical Co., Inc

Bzura

$50,000,000

Debentures

Rhoades & Co.)

Loeb,

$18,000,000

Common

Sachs

October 8

Corp

Co.)

&

Brooks & Co.,

W.

(P.

Capital Fund of Canada, Lta.__Common

(Carl M.

..Bends

(Blyth & Co.,

Discount, Inc

Hogle

A.

Chemical

Bzura

Debentures

Lehman Brothers)

Sports Centers, Inc.—

New York

(Kidder.

Common
300,000^sttpes

Co._______

*c Hatzler and

Bros.

$6,500,000

(Paine, Webber, Jackson & Curtis) $1,000,000

(Wednesday)

September 2
Associates

$450,000

Co.)

.

(Hirsch & Co. and Lee Higginson Corp.)

'

(Cruttenden,

(Friday)

Albertson's, Inc.
•

Corp.-

Southern Realty & Utilities

Co.)

(Thursday)

EDT)

a.m.

October 1
■

Class A

Lomasney

&

.Debentures

September 21
(White, Weld & Co.

$300,000

Co.)

1,057,725 shares

Lomasney &

Aid Investment &

$1,300,000

underwriting)

(No

Common

Co.—.——Common

Finance

Frontier

Southern

invited)

September 14

$175,000

Co.)

&

Carter

(Gates,

&

Common

A.

A.

(Myron

$300,000

Corp..—

Tuna

International

•

Lomasney

be

& Construction

Acme Missiles

...Common

Lomasney & Co.)

A.

$750,000

..Common

September 11

$300,000

Co.)

Laboratories, Inc

Common

A.

to

(Myron

Common

Inc

$300,000

York Research Corp

$600,000

Co.)

&

Laboratories,

...Common

Co.

Electric

Common

—

Malkan

(Arnold

Foto-Video

Common
150,000 shares

Inc.)

—

(Bids

$3,500,000

and P. W. Brooks Sc Co., Inc.)

(Lee Higginson Corp.

Co.,

Frequency Co., Inc

Union

Debentures

Inc

Loeb

Corp

11

(Goldman,

New

(Thursday)

(Vermilye Brothers)

'

(Myron

Chemicals,

Kuhn

and

Debentures

Buckingham Transportation Inc

$300,000

Inc.)

(Golkin, Bomback & Co.)

Inc.——Common

Inc.)

Co.

(Bids

Common

Heritage Corp. of New York

'

shares

100,000

Co.)

&

Chemical

(Bids to be Invited)

...Common
&

September 1
Cary

$700,000

Co.)

Earle M. Jorgensen Co

$714,000.*

Corp
Communications,

(McDonald

Belco Petroleum Corp.

Co., Inc

September 10

.Debs. & Common

Inc

Eberstadt

(P.

States

United

$156,250

Common
&

.Common
$400,000

(Offering to stockholders—underwritten by Smith, Barney & Co.)
$25,000,000

Common

Plohn

Inc.__

Hoerner Boxes, Inc

■

Corp.,

Kletz & Co., Inc.)

(Michael G.

Petro-Chemicals,

(Philadelphia Securities Co., Inc.)
Brush Beryllium Co

Preferred

Inc.)

Co.,

&

$1,750,000

(Wednesday)

$3,000,000

EDT)

a.m.

.Notes & Common

Georgia Power Co

$3,150,000

CDT)

125,000 shares

September 17

(Wednesday)

(Summit Securities,

.—Class A Common

View Industries,

shares

Corp._^

Pickle

Fredonia

H. Hentz & Co.
C, E. Unterberg, Towbin Co.) 150,COO shares

and

Sea

118,270

*

Hooker

shares

shares

223,000

Inc.)

11

(Charles

,

(Lee Higginson

$850,000

Common

noon

Holman

A.

Steel

•

Paddington Corp

Inc.)

Concert Network, Inc

.

Infrared

t

Allied

Debentures
Durst,

2,000,000

Inc.)

$300,000

(Bell & Hough Inc.)

shares

200,000

&

Community Public Service Co

$300,000

Inc.)

America, Inc

(Karen

page

Common

September 16

"

.

Georgia-Bonded Fibers, Inc

Co.,

&

on

Commpn
Co.)

&

(Blyth & Co., Inc.)

•'"1 Chicago, Burlington & Quincy RR.-JEq. Trust Ctfs.

v

*

(Loewi

Office—Georgetown^

West Florida Natural Gas Co

Common

September 9

$500,000

underwriting

(No

\

$1,500,000

Rudler & Co.)

C.

Amos

Investors Funding Corp. of

Inc.)

Co.,

Inc.

Products,

exchanged.

(Simmons

Common

Wagenseller

Stearni & Co.)

(Bear,

.

—Common

-

(Purvis &
'

&

and

not

shares

50,000

Sottile, Inc.

Jr. Co

.

v

Co.

&

Part of the pro¬

year.

Transdyne Corp.

Common

&

Burnside

E.

Ryons

one

also be used to retire outstanding subordi¬

Continued

shares

Outdoor Advertising Co

(Lester,

applied to the reduction of

Underwriter—None.

Common

110,000

New West Amulet Mines Ltd

' Florida Water & Utilities Co

,

Proceeds—

maintain the working capital of the com¬

short-term notes due within

'

•

or

West Coast Telephone Co

Microwave Corp

Narda

—

'

(William

•

29 filed

pany

.Debentures

/_

Lytton Financial Corp.__________^
■.''V:.1

Telephone Co., South China, Maine
Aug. 7 (letter of notification) 2,000 shares of preferred
stock to be offered for subscription
by stockholders and
the company's 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¬
struct a cable; to repay notes, etc. Underwriter—None.

To increase

$1,500,000

''

/

China

Burnham & Co. and S. D. Lunt & Co.)

(Scherck, Richter & Co.;

120 East

CALENDAR

Long Mile Rubber Co.__

i

—

—

share for each 10 shares

new

NEW 'ISSUE

Plan for Officers and Key
Employees. Office
Lancaster Ave., Ardmore, Pa.

offering.

Sixth St., Pine Bluff, Ark.
Under¬
Guerin & Turner, Inc., Dallas, Texas.

at the rate of One

r

offering.

^ Century Properties
Aug. 5 (letter of notification) 33,880 shares of common
stock (par $1) to be offered for subscription by stock¬
holders

Angeles, Calif. Underwrite^—None.

it Certain-Teed Products Corp.

Acceptance Corp.
$600,000 of series F 6% five-year subor¬
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

plant in Florida, and for
including working capital.

purposes

Proceeds—To retire in part
Office—1758 La Cienga Blvd.*

loans.

dinated

West

writer— Eppler,

Los

share.

per

bank

Citizens'

new

a

Price—$4

current

June

and

★ Central Transformer Corp. (9/IS)
Aug. 20 filed 98,750 shares of common stock, of which
89,773 shares are to be publicly offered. Price—To be
supplied by amendment. Proceeds—To retire debentures,

'

Lincoln Telephone & Telegraph Co._
Preferred
(Offering to stockholders—underwritten by Dean Witter & Co.)
;v"
$3,000,000 ' . ;
•'
m',/
Southern Pacific Co.___
___—--Equip. Trust Ctfs.

Offering—Expected

working capital, of subsidiaries; to
repay loans. Office—1315 Dixwell Ave., Hamden, Conn.
Underwriter—Arnold Malkan & Co., Inc., New York.

to

its

n

Aug. 20 filed 75,000 shares of common stock, to be issued1
upon the exercise of options granted to officers and
key employees of the company pursuant to its Incentive

Underwriter—Pear¬

*"/"

day.-

sales

'

••••'

Bldg., Dallas, Texas.

American

Central Corp. (9/1-4)
Aug. 3 filed 200,000 shares of common stock (par 10c).
Price—$3 per share. Proceeds—For manufacturing and

• Gary
Chemicals, Inc.
(9/1)
July 28 filed $3,500,000 of subordinated debentures due
.Sept. 1, 1979 and 205,000 shares of common stock (par
JO cents) to be offered in units. The number of shares
in each unit will be determined prior to the public
offering. Price—$500 per unit. Proceeds—For general
corporate purposes, including working capital. Under¬
writers—Lee Higginson Corp. and P. W. Brooks & Co.,
Inc., both of New York.
/..V

TT

Office—207

purposes.

Washington St., East Peoria, 111.

■

•

corporate

which may be acquired pursuant thereto. Office—600 W.

^ Carrtone Laboratories of Puerto Rico, Inc.
Aug. 17 (letter of notification) 30,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To pur"chase a plant, construction and installation of electrical
.power distribution system and for working capital. Office
—356 Jose M. Canals St., Hato Bay, Puerto Rico. Un¬

1

held.

★ Caterpillar Tractor Co.
Aug. 21 joined with five of its subsidiaries in the filing—
of 7,000 Participations ih the Employees Investment Plan
for eligible employees of the six
companies, together
with 150,000 shares of Caterpillar Tractor common stock

Shares, Inc.
'
'
Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
L-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.
;.

''

Corp.

son, Murphy & Co., Inc., New York.

Capital

^

general

Bank & Trust

~

'/

Chemical

Casco

July 10 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—*
For marketing of "Resistolox 20," (an
anti-oxidant) and

«

Metals

derwriter—None.

(855)

White

&

Co.)

(Tuesday)

Consolidated Edison Co. of New York, Inc.__Bonds
(Bid* to be invited)

$50,000,000

33

nnmercial and t inancial

Continued fro'tn page 31

share for each
1959.

City Discount & Loan Co.
July 30 (letter of notification) 120,000 shares of common
(no par). Price—$2.50 per share. Proceeds — For
working capital. Office—1005 Northeast Broadway, Port¬
land, Ore. Underwriter—R. G. Williams & Co., Inc., New
York, N. Y.
Offering—Expected during the latter part

Price—$150

Stetson, Inc., both of New York.

■if Collier Acres,
Aug.

Inc.,

Miami

(letter of notification)

17

Beach,

Fla.

stockholders

300,000 shares

of

com¬

stock. Price—At par ($1 per share). Proceeds—To
purchase properties; advertising and for working capital.

Colorado
Feb. 25

Water

Power

&

Newark, N. J.

working capital.
6herman Street, Denver, Colo.
Columbian

Financial

York.

Underwriter

time in

—

Office—Suite

421, 901

Development Co.

Office—15 East
None.

of

May

record

"best

a

be

Offering

October. I

amendment. Proceeds—For repayment of notes and
working capital. Underwriter — To be supplied by

Refining Corp.
©ec. 16,1957 filed $25,000,000 of first mortgage bonds du«
Sept. 1, 1968, $20,000,00 of subordinated debentures du«
Oct. 1, 1968 and 3,000,000 shares of common stock to b«
'Offered in units as follows: $l,00u of bonds and 48 sharei
tof stock and $100 of debentures and nine shares of stock
'Frice—To be supplied by amendment. Proceeds — Tc
-eonstruct refinery. Underwriter—Lehman
Brothers, New
Offering—Indefinite.

Commercial

Denab Laboratories, Inc.
July 31 filed 50,000 shares of common stock (par $2.50).
price—$10 per share. Proceeds—For general corporate
purposes, including salaries, cars, promotion, inventory,
establishment of branch

offices,

expenses

incidental

Corp.
Nov. 28 (letter of notification) 900,000 shares of
mon stock.
Price—At par (10 cents per share).
ceeds—For

ILake

investment.

Office—450

So.

Main

com¬

Pro¬

St.,

Salt

City, Utah.

Underwriter—Earl J. Knudson & Co.,
Bait Lake City, Utah. Offering—Expected in
August.

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

provements
struction in

to

incurred for extensions and im¬

were

property

progress.

made

in

1959

Underwriter—To

and
be

for

con¬

determined

by competitive bidding. Probable bidders:
Kidder, Peabody & Co. and White, Weld & Co. (jointly); Eastman
Dillon, Union Securities & Co.; Stone & Webster Secu¬
rities Corp.
on

Sept.

Bids—Will be received up to 11 a.m. (EDT)
1959 at 90 Broad Street, 19th Floor, New

9,

York, N. Y.
•

Concert Network, Inc.-(9/9)
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.
Office—171 Newbury St., Boston
16, Mass. Underwriter
—R. A. Holman &
Co., Inc., New

York, N. Y.
-A-Construction Products Corp., Miami, Fla. (9/15)
Aug. 25 filed 250,000 shares of class A common stock
(par
$D, of which 200,000 shares will be sold for the account
of certain
selling stockholders and 50,000 shares will be

sold for the
company's account. Price—$3 per share. Pro¬
ceeds—For working capital.
Underwriter—Clayton Secu¬
rities Corp., Boston, Mass.
•

Control

Aug.

17

Corp. (9/3-22)
99,594 shares of common

(par

50

cents) to be offered to common stockholders of
record
Sept. 3, 1959, on the basis of one new share
for each
eight shares then held, with an
oversubscription privi¬
lege; rights to expire on or about Sept. 22. Price—To
be supplied
by amendment. Proceeds—For general cor¬
porate purposes, including
working capital.
Park

ter &

Ave., Minneapolis, Minn.
Co., New York.

Cree

April
80

Office—501

Underwriter—Dean Wit¬

17

filed
per

2100

Underwriter

260,000 shares of common stock.
Proceeds—For exploation

share.

June

\

—

Regina.

Price—

St., Regina, Saskatchewan, Canada.
Cumberland
Securities Ltd.,
also
of

Crescent Petroleum
Corp., Tulsa, Okia.
May 26 filed 48,460 shares of 5%
convertible pfd. stock
($25 par) and 12,559 shares of common
($1 par), 34,460
•hares of the preferred and
9,059 shares of common 'are
Issuable upon the exercise of
stock options
granted when
the assets of Norbute
Corp. were acquired on Aug 6
1958.

•

Underwriter—None.

Crowley's Milk Co.,

March
stock

26

filed

60,000

(9/14-18)
outstanding shares

of

common

—

Crusader Life Insurance
Co., Inc.
3 (letter of
notification) 1,000 shares of common
(par $50 )to be offered for
subscription by stockbu^ers of record April
30, 1959, on the basis of one new
June

•■♦nek




than

Underwriter—Alkow & Co., Inc.,
v;■

$120

less

no

N.

W.,

General

29

a

than

annual

for

year

$1,500

Policies.
premium

single

premium

for

investment, etc.

Washington,

D.

C.

Office—2480

Underwriter—

Corp.

filed '"" together

with
Development Corp. of
registration statements
seeking registration
securities, as follows: Equity General, 500,000 shares

—$2,875,000

of

chase

of

which

to

supply

Wilbur

will

the

Clark's

leave

cash

to

necessary

Desert

Inn,

Las

the

pur¬

Vegas, Nev.,

the

$7,000,000 balance to be covered
by mortgages; $200,000 for disbursements in connection

St., New York.

Development Corp. of America
29 Registered issue.
(See Equity
below.)

General

June

•

Gilbert's

Corp.

Leasing & Development Corp.
convertible de¬

bentures, due July 15, 1979 and 1,056,000 shares of com¬
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

and

D.

Fuller

&

Co., New York.

Offering—Expected in

'• Dixie Natural Gas
Corp.
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¬
writer—Michael

Fieldman, 25 Beaver St., New York.
if Dixon Chemical & Research, Inc.
Aug. 25 filed 10,000 shares of 6% cumulative convertible
preferred stock ($100 par). Price — To be
supplied by
amendment. Proceeds

For general corporate
purposes.
Office—1260 Broad St.,
Bloomfield, N. J. Underwriters—
Hardy & Co, and P. W. Brooks & Co., Inc., both of New
York. Offering—Expected sometime in
—

September.

,,

Dooley Aircraft Corp.
Aug. 14 filed 506,250 shares of

common stock (par one
cent), of which 375,000 shares are to be
publicly offered.
Price—$2 per share. Proceeds—To repay
loans;~to pay

the

$80,000 balance due on the company's purchase of
the complete rights to the
MAC-145 aircraft; and for
working capital, including expenses for advertising. Of¬

fice—105

West Adams St.,
Chicago, 111.
Mallory Securities, Inc., New York.
if Drake Associates

Underwriter—

Aug. 20 filed $5,905,000 of limited
partnership interests.
Price—$10,000 for each of 590 xk units. Proceeds—To
the Hotel

Drake, located at 56th St.

and Park

buy
Ave., New

York, from Webb & KnappT Inc. Office—60 East 42nd
St.,
New York. Agents—Domax Securities
Corp., and Peter I.
Feinberg Securities Corp., both of New York. OfferingExpected sometime prior to Oct. 1.

offered in units.
used

for

Price—$10,000

various

interests, to

unit.

per

acquisitions.

be
Proceeds—To

Office

—

Broad

&

Chestnut
•

Streets, Philadelphia, Pa. Underwriter—None.
IDynex, Inc. (9/8-11)

Aug.

6 filed 120,000 shares of common stock
(par 25
Price—$5 per share. Proceeds—For general cor¬
porate purposes, including product
research, the pur¬
chase of new equipment, and
expansion. Office
123
Eileen Way, Syosset, L. I., N. Y.
cents).

A.

•

Edward

Steel

Corp., Miami, Fla. (9/9)
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.
if Electro-Sonic Laboratories, Inc.
Aug. 14 (letter of notification) 100,000 shares of common
July 8
cents).

stock

filed

(par

To retire

10 cents).

Price—$3

per

share.

Proceeds—

outstanding bank loan; to increase inventories;
activities; to improve produc¬

for sales and promotional
tion

facilities

and

to

acquire

new

and

improved tools

machinery; for development and research and for
working capital. Office
35—54 Thirty-sixth
St., Long
Island City, N. Y.
Underwriter—L. D. Sherman & Co.,
New York, N. Y.
Electronic
June 29

Data

owner

and

common

the

to

of 2,399,504 shares of
proposes

holders

to

offer

Development
500,000 of such

of

Equity General common in
exchange therefor, on a one-for-one basis. The Board
of Equity General has authorized
the issu¬

of Directors

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
ance

Corp. preferred.
ESA Mutual

Development

Office—103 Park Ave., New York
City.

Fund, Inc.

June 29 filed 2,000,000 shares of
capital stock.
be supplied by amendment/

Price—To

Proceeds—For investment.
Investment Adviser—Yates, Heitner &
Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc.,
D.

C.

Office—1028 Connecticut

ington, D. C.
•

Fair

Aug.

(9/14-18)
120,000 shares of class A common stock.
supplied by amendment. Proceeds—For
capital and other general corporate purposes.

filed

working

be

Underwriters

—

R.

and Alex. Brown &
•

Washington,

Avenue, N. W., Wash¬

Lanes, Inc., Baltimore, Md.

18

Price—To

Paradyne

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 New York.
Statement with¬
drawn on July 27.
June 23 filed

Federated

Investors,

Inc.

July 16

(letter of notification) 42,000 shares of class B
common stock
(par value 5c) to be sold for the account
of the issuing
company, and 21,000 shares of the same
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 & C®.,

Philadelphia, Pa.
ber.

Offering—Expected in early Septem¬

Fidelity Investment Corp., Phoenix, Ariz.
June 29 filed

1,799,186 shares of class A common stock,
1,700,000 shares are to be offered publicly, and
remaining 99,186 shares have been subscribed for

of which

the
in

May 22 filed $2,000,000 of partnership
be

General is the

for

working capital. Name Changed —
Company formerly known as Dilbert's Properties, Inc.
Office—93-02 151st Street,
Jamaica, N. Y. Underwriter—
S.

stock and 149,478 shares of
preferred stock;
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
common

and

Corp.

June 11 filed $4,400,000 of 20-year 5V2%

oontracts

of

shares

—

(par $20). Price
To be supplied
by amendment.
Proceeds—To selling stockholders.
Office—145 Conklin
Ave., Binghamton, N. Y. Underwriter
Auchincloss
Parker & Redpath, New York.

coaxial cable
systems. 4 Off ice—4902 Lawrence

America,

and

Inc.

financing of

None.

Equity
'

Lomasney & Co., New York.
progam.

interim

Proceeds—For

Street,

Aug. 7 filed $3,025,000 of participations in partnership
interests in associates. Price—$25,000 per unit. Proceeds

—

Scarth

less
and

16th

Underwriter—Myron

Mining Corp. Ltd.

cents

Office

contracts

contracts.

obtaining permission to do business in other states,
the establishment of a
contingency reserve. Office
—1420 East 18th Avenue,
Denver, Colo. Underwriter—

Drexelbrook Associates
stock

for

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity

Price—No

to

Data

filed

and

transmission

New York.

and

September.

Investors

•

Price—

machinery and

equipment
television

St., Bladensburg, Md.

mon

Commerce Oil

"York.

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. Underwrtier—Dempsey-Tegeler &
Co., St. Louis, Mo.

•
15, 1959.
The remaining
Entron, Inc.
(9/14-18)
publicly by the under¬
July 13 filed 200,000 shares of common stock.
be supplied- $5
per sharer Proceeds—For purchase of

with the transaction. Office—60 East 42nd

Street, New
Expected some

Thursday, August 27, 1959

.

basis.-Price—To

imendment.

40th
—

.

offered

efforts"

Desert Inn Associates

Aug. 14 filed $1,000,000 of Plans for Investment in
Shares in American Industry, of which $500,000 was for
Single Payment Investment Plans and $500,000 for Sys¬
tematic Investment Plans and Systematic Investment
Plans With Insurance.

oy

for

on

.

•
Empire Financial Corp. (9/8)
Aug. 6 filed 250,000 shares of common stock, of which
25,000 shares will be offered for the account of the issu¬

None.

(letter of notification) $220,000 of 6% unsecured

Proceeds—For

Proceeds—For working capital.
Ave., Kansas City, Kan. Under¬

share.

shares will

writer

Co.

debentures due April 1, 1964 and 1,100 shares of common
jtock (par $1) to be offered in units of $200 of deben¬
tures anci one share of stock.
Price —$205 per unit

•

158,387

the

mon

Underwriter—Williams & Associates,

per

Minnesota

Crusader Oil & Gas Corp., 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

«

and

Rights expire Aug. 25,

writer—None.

of August.

Cohu

shares held.

Office—640

ctock

Cohu Electronics, Inc.
July 20 filed 353,535 shares of common stock (par $1)
being offered to common stockholders on a basis of one
share for every three shares held as of Aug. 21, 1959;
rights to expire on Sept. 9, 1959. Price—$5.25 per share.
Proceeds—To reduce outstanding indebtedness, for ex¬
pansion, and for working capital. Office—San Diego,
Calif. Underwriters—Hayden, Stone & Co., and Winslow,

two

Unsubscribed shares will be offered to the public.

Chronicle

consideration for services rendered in
organizing the
as an incentive to management. The
company
has agreed to issue to the
organizers 200,000 shares of
class B common stock; and
100,000 class B shares have
been set aside for issuance to
keep personnel other than
the organizers. Price—To
public, $3 per share. Proceeds
—To be applied to pay interest due
on properties and to
purchase new properties and for
working capital. Under¬
writer—None. °
company

Financial

Industrial Income Fund, Inc.
shares of common capital stock.
Price—At market. Proceeds—For
investment. Office—

July 22 filed 1,000,000
950

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
First

Northern-Olive

Investment

Co.

Aug 17 filed 20 partnership interests in the
partnership.
Similar filings were made on behalf of
other NorthernOlive

companies, numbered "second" through "eighth."

Price—$10,084 to $10,698 per unit. Proceeds—To purchase
land in Arizona. Office—1802 North
Central Ave., Phoe¬
nix, Ariz.

Underwriter—O'Malley Securities Co.,

nix'

.

Phoe:

,HJkV

if First Philadelphia Corp.
Aug. 21 (letter of notification) 100,000 shares of
class A
common stock (par 10
cents). Price—$3 per share (gross
30 cents per share to brokers
selling 2,500 shares or less,
and 45 cents per share to
those brokers

Processing

Center,

Inc.

(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.
—

2,500

shares).

corporate

Business

Proceeds—For

purposes

and

to

selling more than
working capital; general
develop dealer relations.

A

broker-dealer firm formed to underwrite
new
security issues. Office—40 Exchange
Place, New York 5, N. Y. Underwriter—First Philadel¬
phia Corp., New York, N. Y.
and

—

distribute

time in September.

Offering—Expected

some¬

.Volume 190

Number 5876

.

.

The Commercial and Financial Chronicle

.

•

Florida
Palm-Aire Corp.
(9/14-18)
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
•—Hardy & Co. and Goodbody & Co., both of New York.
Florida Water & Utilities
Co.,

July
of

8

Miami, Fla. (8/28)
86,000 shares of common stock (par $1),
65,000 shares are to be offered for the ac¬

filed

which

count

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.
& Hough, Inc., St.

Underwriter—Beil

Petersburg, Fla.

Fortuna

Corp.
July 21 filed 1,000,000 shares of common stock. Price—
$1.50 per share. Proceeds—To complete race plant and
for general

N.

M.

corporate purposes.

Office

Underwriter—Minor, Mee

&

—
Albuquerque,
Co., Albuquerque,

(857>>

Boston

Corp.; Morgan Stanley & Co.; Equitable Secu¬
rities Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc.

Bids—Expected
11 a.m. (EDT) on Sept. 17 at the
Services, Inc., Room 1600, 260 Park
Ave., New York 17, N. Y.
be

to

received

office

•

of

Gold

up

Medal

Packing Corp.
572,500 shares of common stock (par one "
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares 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¬
writer—Mortimer B. Burnside & Co., New York. Name
Change—Formerly Eastern Packing Corp.
Offering—
Expected in September.

June

N. M.

18 filed

Government

Foto-Video

Laboratories, Inc.

New York.

June

18 filed

Price—At

Balanced

Fund,

100,000 shares of

market.

Inc.

common

Proceeds—For

stock

(par $1).

investment.

Office—

Union St., Nashville, Tenn. Investment Adviser—J.
C. Bradford & Co., Nashville, Tenn. Distributor—Capital

418

Planning Services, Inc.
Foundation Stock Fund, Inc.
w
;
~ .
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.
C. Bradford & Co.,

Planning

Nashville, Tenn. Distributor—Capital

Services, Inc.

Fredonia

Employees Variable Annuity Life

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,

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 1% 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 % 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.
•

Great

American

Publications,

filed 260,000 shares of
of which 195,000 shares

11

cents)
fered

on

ceeds

best

a

For

—

effects

working

New York, N. Y.

York.

Aug. 12 (letter of notification) 3,300 shares of 6% cumu¬
lative preferred stock.
Price—At par ($30 per share).
Proceeds—To go to selling stockholders. Office—2 West

June

basis.

Inc.

are

to

be

Price—At

capital.

Office

(par 10
publicly of¬

stock

common

market.

—

46th
t

St., New York 36, N. Y.

Gabriel

Underwriter—None,

Co.

tures.

Price—100% of principal amount of the deben¬
tures. Interest Rate—To be determined by amendment.
Proceeds—For capital investment.
Office—1148 Euclid

Avenue, Cleveland, Ohio. Underwriters—Prescott, Shepard & Co., Inc., Cleveland, and Carl M. Loeb, Rhoades
& Co., New York. Offering—Expected this week.
General

Contract

series

stock,

Finance Corp.
(9/14-18)
200,000 shares of convertible preferred
A, ($20 par). Price—To be supplied by

filed

24

amendment.

Proceeds—To

aid

in

the

expansion oLthe
company's loan and finance company subsidiaries. Office
—901 Washington Ave., St. Louis, Mo.
Underwriter—
G. H. Walker & Co., St. Louis, Mo. and New York, N. Y.
General

Merchandising Corp., Memphis, Tenn.
18 filed 250,000 shares of class "A" common stock
(par one cent).
Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
Feb.

writer— Union

Tenn.

Securities

Investment

Co.,

Memphis,

Statement effective April 24.

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000

shares
and

are

to be offered for the account of the company

30,000 shares for

selling stockholder. Price—$1 per
share. Proceeds—For furniture 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.
a

•

Genesco, Inc.
July 29 filed 535,000 shares of
to be offered to the

fit Co.,

Chicago,

Genesco
mon

common

stock.

shares

of

shares

•

its

common

common

stock

(par $1),

shareholders of The Form-

111.,

on the basis of 0.891% shares of
stock for each share of Formfit com¬

[Genesco

has

agreed

to

exchange

454,318

or

common

stock for

an

aggregate of 509,516

approximately 84.9% of the common stock of
Formfit.]
Office—111 Seventh Avenue, North, Nash¬
ville, Tenn. Underwriter—None.
• Georgia-Bonded Fibers,
Inc.
(8/31-9/3)
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 Nuttman
St., Newark, N. J. and Buena Vista, Va. Under¬

writer—Sandkuhl &

Company, Inc., Raymond Commerce

Building, Newark, N. J.

Life

Insurance

Co.

at

the

be

offered

of

rate

one

in

units,

unit for

each

15

shares

held

on

or

about Aug.

28, 1959; rights to expire on or about Sept.
28, 1959. The options evidence the right to purchase the
200,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
ment.
Proceeds—For
loan
to
the
subsidiary
(Great
Western Building & Loan Corp.); and the balance will
be used to increase capital and surplus. Office—101lil N. W. Second St., Oklahoma City, Okla. Under¬
writers—G. J. Mitchell, Jr. Co., Washington, D. C.; and
Purvis & Co.,
Denver, Colo.
• Greek Voice of
America, Inc. (8/31-9/3)
July 9 (letter of notification) 300,000 shares of class B
capital stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For production and publicity of Greek language
radio and television programs and manufacture; dis¬
tribution and promotion of Greek language records. Of¬

fice

—

Karen

N. Y.

401 Broadway, New York, N. Y. Underwriter —
Securities Corp., 95 Broad Street, New York,

Price—Of common, $2 per share;
share. Proceeds—For working
capital. Underwriter—None.
preferred,

(par $5).

$5.75

per

it Guarantee Mortgage, Inc.
14 (letter of notification) $100,000 of 10-year 6%
sinking fund debentures (in denominations of $1,00.0).
Each debenture may be purchased with 100 warrants: to
buy one share of class A common stock (par $10).
The
right to purchase class A common stock by way of war¬
rants will terminate Dec. 31, 1969. Price—90% without
warrants. Proceeds—For investment purposes.
Office—
725 Failing Bldg., Portland 4, Ore. Underwriter—None.
Aug.

it Guerdon Industries, Inc.
Aug. 21 filed 400,000 shares of class A common stock (no
par). Price—To be supplied by amendment. Proceeds—
bank indebtedness by $3,500,000, and to pay¬
$2,500,000 notes. Office—3782 South Van Dyke Road,
Marlett, Mich. Underwriter—Blair & Co., Inc., New York.
Offering—Expected sometime in September.

To

reduce

off

Haag Drug Co., Inc., Indianapolis, Ind.
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. Underwriter
—City Securities Corp., Indianapolis, Ind.

it Georgia Power Co. (9/17)
Aug. 21 filed $18,000,000 of first mortgage bonds due
Sept. 1, 1989. Proceeds—Together with other funds, will
be used for the construction or acquisition of permanent
improvements, extensions and additions to the company's

it Harmon Glass Co., Inc.
Aug. 17 (letter of notification) 35,000 shares of common
stock (par $1).
Price—$6.40 per share. Proceeds—To
pay off short-term indebtedness; working capital; equip¬

utility plant. Underwriter—To be determined by comr
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth "& Co., Inc.J Kidder, Peabody & Co. and

apolis 3, Minn.

Shields

&

Co.

(jointly); Lehman




Brothers;

The

First

ment

and

stock.

Office—1410

Harmon

Place,

Minne¬

Underwriter—None.

Heliogen Products, Inc.
22, 1958 (letter of notification) 28,800 shares of
common stock (par $1). Price—$5 per share.
Proceeds—
Oct.

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.
—For general corporate purposes. Office—12 State St.r
Albany, N. Y. Underwriter—Golkin, Bomback & Co., 25?
Broad St., New York 4, N. Y.

it Heublein,

Hartford, Conn.

Inc.,

(9/22)
(par $5),

300,000 shares are to be sold for the account bt
the company, and 125,000 shares for the account of cer¬
tain selling stockholders. Price — To be supplied by
amendment. Proceeds—For general corporate purposes^
including the reduction of short-term borrowings, the •
financing of additional inventories and accounts receiv¬

able, and the general expansion of the firm's business..
Underwriter—Glore, Forgan & Co., New York.
Hickerson Bros. Truck

Co., Inc.
(letter of notification) 285,000 shares of com¬
Price—At par ($1 per share). Proceeds—1T*
pay existing liabilities; for additional equipment; aoA
for working capital.
Office—East Tenth Street, P. GL
Box 68, Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo. Offerings-Expected sometime ino
August.
_'
•
March 11
mon

stock.

Highway Trailer Industries, Inc.
?~
9 filed 1,110,052 shares of common stock (par 25
cents) being offered to common stockholders of recorc>.
Aug. 12, 1959, on the basis of one new share of commobi
stock for each two shares of common then held (with aix
oversubscription privilege); rights will expire at 3:30
p.m. (EDST) on Aug. 28. Price—$4 per share. Proceeds—
To be used for new equipment and plant improvement;,
for inventory and production requirements of the Hazelton, Pa., plant and increased production at the Edgerton.
Wis. plant; to discharge a short-term bank loan; and the*
balance will be used for general corporate purposes..
June

•

Hoerner

Co., both;

v

Boxes,

Inc.

(9/17)

Aug. 19 filed 246,500 shares of common

stock, of which-.

199,000 shares will be publicly offered. Price—To bev
supplied by amendment. Proceeds—To finance an equity"
investment, and to finance a loan to Waldorf-Hoernei.*
Paper Products Co., which will be 50% owned by thn
issuing company. Office—Keokuk, Iowa. Underwriters—Goldman, Sachs & Co., New York.
•

Hofman

Laboratories, Inc.

(9/1-2)

(letter of notification) 50,000 shares of commmn.
(par 25 cents). Price—$6 per share. Proceeds—To
retire a loan from Hillside National Bank and for gen¬
June 12

stock

eral corporate purposes.
Office — 5 Evans Terminal..
Hillside, N. J. Underwriter—Myron A. Lomasney &
New

York, N. Y.

it Hooker Chemical Corp. (9/16)
Aug. 21 filed $25,000,000 of convertible subordinated
debentures, due Sept. 15, 1984, to be offered for sub¬
scription by common stockholders of record Sept. 15.
1959, on the basis of $100 principal amount of debentures#;
for each 30 shares of common stock held; rights wilfc
expire Sept. 30, 1959. Price—To be supplied by amend¬
ment. Proceeds — For capital expenditures. Office—
Niagara Falls, N. Y.

Underwriter—Smith, Barney & Co...

it Horace Mann Fund, Inc.

Inc., Fayetteville, Ark.

Aug. 17 (letter of notification) 1,000 shares of common
stock (par $1) and 4,000 shares of 6% cumulative pre¬
of

'

New York.

Statement to be amended.

ferred stock

,

of New York.

outstanding
each consisting of five
shares of common stock and an option to purchase two
additional shares, the units to be offered for subscription
by holders of the 1,500,000 outstanding common shares
to

: •

,

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceed®—•—
For development of oil and gas properties. Office—70$
American Bank Building, Portland 5, Ore. Underwrite*
—D. Earle Hensley Co., Inc., 4444 California Avenue^
Seattle, Wash.

Agents—Van Alstyne, Noel & Co. and Allen &

(8/28)

500,000 shares of common stock and op¬

it Griffith & Co.,

General Underwriters Inc.

April 6
mon

filed

New

tions to purchase 200,000 additional shares of

stock,

July 8 filed $2,500,000 of subordinated sinking fund
debentures, due June 30, 1974, with warrants for the
purchase of 20 common shares for each $1,000 of deben¬

Aug.

B. Burnside & Co., Inc.,
Offering—Expected probably in September.

29

Pro¬

York.

New

Underwriter—Mortimer

it Fyr-Fyter Co.

Great Western

ber.

of which

Nov. 13 filed

Aug.

For payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria Blvd., L. I. C»
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way, New York 4, N. Y. Offering—Expected in Septem¬

Aug. 21 filed 425,000 shares of common stock

Insurance Co.

(9/1-4)

July 15 filed 150,000 shares of class B common stock
(par 10 cents). 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.,
Foundation

to

Southern

3&

Aug. 24 filed 300,000 additional shares
Proceeds—For investment.

of capital stocks

Office—Springfield, 111.

Hotel Corp.

of Israel
39,000 shares of common stock

.

(par $5>
and $1,560,000 of 6% subordinated debentures, due Aug1, 1974. Price—$1,500 per unit, consisting of 30 commom
shares at $10 per share and $1,200 of debentures at par.
Proceeds—To purchase, complete, and furnish varioua
properties and for general corporate purposes. Office—
11 South La Salle St., Chicago, 111. Underwriter—Nonew
July

13 filed

(8/28)

I C Inc.

June 29 filed

.

,

4

(par $1>~

600,000 shares of common stock

share. Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate*
and enfranchising of bottlers, the local and national pro¬
motion and advertising
of its beverages, and where*
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver.

Price—$2.50

per

Colo.

Ideal

July

31

shares

80%)

Cement

Co.

,

„

675,000 shares of capital stock.
These?
to be exchanged for all (but not less than

filed

are

of the common stock

(par $1)

of the Volunteer

the ratio of 3% shares of Ideal
stock for each share of Volunteer stock.
Office
500
Denver National Bank Building, 821 17th Street, Denver,.

Portland Cement Co., in

Colorado.

Independent Telephone Corp.
shares of 5% cumulative

June 29 filed 13,080

...

i'

convertible*

preferred stock, series A ($10 par), and 806,793 share®
of common stock, together with warrants for the pur¬
chase

of

50,000

common

shares.

According

prospectus, 800,000 common shares are

to

tho

being offered lo»

Continued

on

page

34L

t

34

The Commercial and Financial Qhronicle

(858)

Continued from page

33

•

-

of non-assignable convertible notes out¬
standing in the amount of $500,000 for conversion of
such notes into common shares at a conversion price
nine

payees

of

$6.25 per share.
The 13,080 preferred shares and
8,175 common shares are being offered in exchange for
the 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
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.
Proceeds
For working capital. Office — 25 South St.,
each

for

share

of

common

—

Underwriter—None.

Dryden, N. Y.

debentures

6%

$200,000 subordinated
($1,000 denomination) and

Underwriter—May & Co., Port¬

Portland 4, Ore.

Vinyls, Inc.
Aug. 20 filed 200,000 shares of
share.

per

chase of machinery and

Infrared

Industries, Inc. (8/31-9/1)
July 29 filed 100,000 shares of common stock. Price—
To be' supplied by amendment. Proceeds—For expansion
and working capital.
Office—Waltham, Mass. Under¬
writer—Lehman Brothers, New York.
International

Bank, Washington, D. C.
Dec. 29 filed $5,000,000 of notes (series B,
$500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% p«
unit; and series D, $3,500,000, 6-year, 5% per unit). Prtm
—100% of principal amount.
Proceeds — For workini
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
International

(letter

Tuna

Corp.

(9/1-4)

of notification)

175,000 shares of claai
(par 50 cents).
Price — $1 per share
Proceeds—For equipment and working capital.
Offio#
—-Pascagoula, Miss. Underwriter—Gates, Carter & Co. '
Gulfport, Miss.

A

common

stock

Investment Trust for the Federal Bar
Bldg.
Aug. 14 filed 500 Beneficial Trust Certificates in
Trust. Price—$2,600 per certificate. Proceeds—To
cash

necessary

to purchase

the

land

at

1809-15

H

St., N. W., Washington, D. C., and construct an office
building thereon.
Offico—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D.
C., and Swesnick & Blum Securities
Corp.
•

Investors Funding Corp. of New York
(8/28)
Feb. 17 filed $500,000 of 10% subordinated
debenture!
due July 31, 1964, to be offered in units
of $1,000. Priot
—At 100% of principal amount.
Proceeds—For invest¬
ment.

Office—511 Fifth Ave., New
York, N. Y.

Under¬

writer—None.

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 acquisitibn of other properties; also for other

corporate

Office—1950 Broad St.,
Regina,
Underwriter
Laird &
Rumball,

purposes.

Sask., Can.
Regina, Sask., Can.

—

.

Jackson's

Minit

Markets,

Inc.

July 30 filed 223,000 shares of
to

be

offered

to

stockholders

1959,

on

then

held; rights to expire

the basis of

one

new

common

of

record

stock
as

of

(par $1),
Aug. 28,

share for each two shares

Sept. 15. Price—To be
Proceeds—For general corpo¬
rate
purposes, including the equipping and
stocking and
possibly the construction of new stores. Office
5165
on

—

Beach

Boulevard, Jacksonville, Fla.
Underwriter
Pierce, Carrison, Wulbern, Inc.,
Jacksonville, Fla.
Jorgensen (Earle M.) Co. (9/10)
Aug. 10 filed 150,000 shares of common

Angeles, Calif. Underwriter—Blyth
geles, Calif.

(par $1).

St., Los
& Co., Inc., Los An¬

• Kittanning Telephone Co.,
Kittanning, Pa.
Aug. 24 filed 14,000 shares of common
stock, to be of¬
fered by subscription to holders
of outstanding common
on

share

the basis of

held.

approximately 0.212
Price—$25 per share.

new

shares for

Lee National Life
Insurance Co.
June 11 filed 200,000 shares of
common
stock, to be of¬
fered for subscription
by holders of outstanding stock on
basis of

the period

one

new

share for each

ending June 25, 1959.

stockholders; $6
increase

basis
of

of

the

one

Microwave

record

the public.

Sept.

on

14. To permit the

common

shares.

has

stockholders

common

Proceeds—To
tion

such

on

basis

ing

bank

loans

incurred for

remainder

for

capital.

working

Financial

—None.

his rights as to 5,004
supplied by amendment.

be

the

and

expenses,

Office—4061 Transport St., Palo Alto, Calif. Underwriter'

one

waived

Price—To

reduce

offering

Office—Lincoln, Neb.

proram.

machinery, equipment and other fixed assets, for operat¬

shares then held; rights to expire

common

Corp.

,

Lincoln Telephone & Telegraph Co.
(8/27)
Aug. 6 filed 30,000 shares of 5% convertible preferred

for each nine

Electronics

July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1,1969 together with 250,000 shares of
common stock
(par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 com-Y
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

per share. Proceeds—For inventory and for
working capital. Office—Jacksonville, Fla. Underwriter
—Plymouth Bond & Share Corp., Miami, Fla.

Los

Angeles,

Adviser—Hill, Richards & Co., Inc.,''
Calif/

Monarch Marking System Co. (9/14-18)
Aug. 12 filed 100,000 shares of common stock (no par),
of which 50,000 shares are to be offered for the account'

construc¬

Underwriter—Dean

capital

share held

Price—$5

ner

during

share to

share to the public. Proceeds—To
and surplus.
Office
1706
per

Boulevard, Shreveport, La.




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¬

—

Long Mile Rubber Co., Dallas, Tex. (9/8-11)
Aug. 18 filed $1,500,000 of sinking fund subordinated
debentures, due Sept. 1, 1974, with warrants for the
purchase of 60,000 shares of common stock. The state¬
ment also covers 225,000 shares of outstanding common
stock, to be offered for the account of certain selling
stockholders.

Price

For

—

debentures

with

Centenary

Underwriter—None.

ment.

Ohio.
•

Loomis-Sayles Fund of Canada Ltd.
July 6 filed 800,000 shares of common stock, to be of¬
fered initially at $25 per share through
Loomis, Sayles &
Co., Inc., to clients, officers, directors and employees of
the 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.
Proceeds—For

supplied

by

stock

afriendment.

(par

$1).

Proceeds—To

enable the wholly-owned Lytton
Savings and Loan As¬
sociation to increase its lending and investment
with the balance to be retained by the
issuing company
and added to working capital. Office—7755 Sunset

Blvd.,

Hollywood, Calif. Underwriter—William
Co., Los Angeles, Calif.
Magnuson
June

26

Properties,

filed

Price—To

R.

Staats

&

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
the company; $350,000 will be used to pay off an exist¬
ing loan secured by a mortgage on the Florida Shores
properties in Edgewater, Fla., and an assignment of a lot
contract receivable; about $150,000 for the construction
of the first four stories of the
company's proposed office
building in Miami (the balance estimated at $150,000
will be secured by a mortgage on the
building), and
$93,200 to close certain options and purchase contracts
covering lands in the Melbourne-Cape Canaveral area.
The

balance

funds

and

will

will

be

be

added

available,

to

the company's general
together with funds re¬

from payments

on lot sales, principally for the
development of the Palm Shores properties (at Eau
Gallie) and for further acquisitions, and for use as
working capital. Office—20 S. E. 3rd Ave., Miami, Fla.

Underwriter—Blair

&

Co.

Inc.,

New

York.

Offering-

Expected in September.

Matronics,

for special
systems, receivables, inven¬
tories, prepayment of notes and other purposes. Office
Main St.,
Westbury, L. I., N. Y.
Underwriters—
Vermilye Brothers; Kerbs, Haney & Co.; Mid-Town
Securities Corp.; and Cortland
Investing Corp., all of

—558

New York.

Medearis Industries, Inc.
May 14 filed 200,000 shares of
cents). Price—$3.75 per share.

corporate purposes. Office

Office—Dayton,
.

Corp.
(9/8-11)
shares of common

entitling the holder to purchase

of

employees
..

stock

common

pursuant

to

reserved

options.

by amendment. Proceeds
loans.

includes

—

additional

one

additional

an

issuance

for

Price—To be

10,000
to

key

supplied

To be used to retire bank

Underwriter—Milton D. Blauner &

Co., Inc., New

York.
National Citrus

Corp.
(letter of notification)

April 20
For

150,000 shares of com¬
Price—At paa? ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬

stock.

mon

new

dress—P.
R.

O.

Box

1658,

Lakeland, Fla.

Underwriter—

F.

Campeau Co., Inc., Detroit, Mich. Offering—Ex¬
pected in September. Statement to be amended.
•

National

Cleveland

Corp.,

Cleveland,

Ohio

Aug. 18 filed $600,000
bentures, due Sept. 1,
amendment.
bank

loans

of convertible

1971.

Proceeds—To

subordinated de-'
Price—To be supplied by

be used

to

retire

short-term

and for additional working

capital. Under^
writers—Merrill, Turben & Co., Inc., Cleveland, Ohio*
and Loewi & Co. Inc., Milwaukee, Wis.
"
■,!
•

National

Aug. 4 filed
—

$1

Industrial

Minerals

Ltd.

150,000 shares of common stock (no par).
per share.
Proceeds — To retire indebt-:

edness for construction of plant and for other liabilities,;
and the remainder will be used for operating capital.Office

Laird

—

&

Regina,

Saskatchewan, Canada. UnderwriterLtd., Regina, Saskatchewan, Canada..

Rumball

National Sports Centers, Inc. (9/2)
July 2 filed $1,000,000 of 6% convertible income deben-,
tures cumulative due 1969, series C, and 100,000 common:
stock purchase warrants. Price — 100%
of principal
amount. Proceeds—To be used for completion of and/or
payment of certain bowling alley and other properties,
and the balance will be added to the company's general
funds available for development of properties and the
acquisition and development of additional bowling prop-,
erties. Office—55 Broadway, New York.
Underwriter—-7
General Investing Corp., New York.
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—i
545
5th
Avenue, New York,
N.
Y.
Underwriter—'
Chauncey, Walden, Harris & Freed, Inc.,- 580 5th Avenue,-

New York, N. Y.

Inc.

(9/10)
June 29 filed 200,000 shares of
capital stock (par 100).
Price—$3.75 per share. Proceeds—For sales promotion,
production test equipment, research and development,

—

42

common

stock

Proceeds—For

(par 20
general

Broadway, New York,
& Co:, Inc., New York.

N. Y. Underwriter—Amos Treat
Offering—Expected in September.

it Meeker's Chemical & Ore Supply Works, Inc.
Aug. 12 (letter of notification) 300,000 shares of common
stock.

shares

Price

Inc.

500,000 shares of class A common stock.
supplied by amendment. Proceeds—$443,-

be

capital.

(9/14-18)

Lytton Financial Corp. 9/8-11)
Aug. 3 filed 110,000 shares of capital
be

Microwave

share.The statement also

investment.

•

Price—To

Narda

warrant

and to repay $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.
.v Y,;/f»--Y

working

16 filed 50,000
stock (par 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached

of principal amount; and for common stock, to be
supplied by amendment. Proceeds—To be used to pay
off notes to bank

Proceeds—For

Underwriter—McDonald & Co., Cleveland, Ohio.*

June

warrants,

100%

Proceeds—In

part to repay a bank loan in the amount
of $450,000 rep¬
resenting funds acquired for general
modernization, im¬
provement, and expansion. Underwriter—None.

the

as

demonstrators

stock

J*ice—To be supplied by
amendment. Proceeds—To ex¬
pand existing warehouse facilities and to
construct new
warehouse facilities, and the balance to
be added to
working capital. Office—10650 South Alameda

each

development and expansion. Underwriter—Neth¬
Co., Inc., New York, N. Y. OfferingExpected sometime in September.
'
erlands Securities

be

Price—$4

ceived

(8/31)

supplied by amendment.

stock

the

on

be offered to

to

capacity,

the

supply

the

stock,

common

shares owned

two

Unsubscribed shares will

Thursday, August 27, 1959

fur'her

Corp.

•

common stock (par 10
Proceeds—For the pur¬
equipment to expand the com¬
pany's facilities for handling thermoplastics, to reduce
current bank borrowings, and for general corporate pur¬
poses including the addition of working capital. Office—
5511 N. W. 37th Ave., Miami, Fla. Underwriters — The
Robinson-Humphrey Co., Inc., Atlanta, Ga., and Clisby &
Co., Tulsa, Okla.

cents). Price—$2.50

•

each

for

share

date.

.

of

Industrial

April 3

offered
new

Window

Aluminum

filed 157,494 shares of
initially to stockholders

28

Witter & Co., New York.

land, Ore.

•

Lenahan

($100 par), to be offered to stockholders of record
Aug. 27, 1959, on the basis of one new preferred share

$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount. Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave¬
nue,

—

None.

July

.

Metallurgical Processing Corp., Westbury, N. Y..
Aug. 6 (letter of notification) 100,000 snares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
retire debts; to acquire new equipment for processing
metals and to expand its overall capacity; to move its
facilities and new equipment into a new building and for

stock

Industrial Leasing Corp.
June 1
(letter of notification)

convertible

^ Lee Transportation Co.
N
Aug. 18 (letter of notification) 5,000 shares of preferred
stock to be offered to employees.
Price—At par ($10
per share).
Proceeds — For general operating funds.
Office
418 Olive St., St. Louis, Mo. Underwriter —

.

Price
At par ($1 per
share). Proceeds
For
equipment, working capital, etc. Office
259 Calliope
St., Laguna Beach, Calif. Underwriter—None.
—

—

Nationwide Auto 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.
latter part of August.

Offering—Expected during the

Nationwide

Small Business Capital Investing
Corp.
April 24 filed 500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds — For working
capital and investments.
Office—Hartsdale, N. Y.
Un¬
derwriter—-None.

,

.it Navco Electronic Industries, Inc.
Aug. 18 (letter of notification) 142,800 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pur¬
chase a plant, equipment, material, inventory and for
working capital.
Office—1211 4th St., Santa Monica,
Calif. Underwriter—Aetna Securities Corp., New York,
N. Y.

—

New

West Amulet Mines

Ltd.

(9/8-11)

*

• Mercantile Acceptance Corp. of California
Aug. 13 (letter of notification) $91,000 of 15-year 6%
capital debentures. Price—At par. Proceeds—For work¬

ing capital. Office—333 Montgomery St., San Francisco,
Calif. Underwriter
Guardian Securities
Corp., San
Francisco, Calif.
—

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,
Canada.

Underwriter—Willis

New York.

E.

Burnside

&

Co.,

Inc.,

Volume

190

New

Number 5876

.

.

The Commercial and

.

Financial Chronicle

York

Capital Fund of Canada, Ltd. (9/2)
1,000,000 shares of common stock (par 34
cents). Price—At net asset value
(as of Sept. 2), plus
underwriting discounts and commissions. Proceeds
For investment.
Underwriter—Carl M. Loeb, Rhoades
& Co., New York.
Statement effective Aug. 11.
June 30 filed

—

• Nielsen-Tupper Instruments, Inc.
Aug. 19 (letter of notification) 29,399 shares of class A
common stock.
Price—At par ($1 per share). Proceeds
~To purchase
machines, tools, office equipment, furni¬
ture, drafting and printing equipment and for
working
capitsl.
Office
1411 Fourth
Ave., Seattle 1, Wash.
Underwriter—Crawford Goodwin Co., Seattle, Wash.
—

•

Nord

Photocopy & Business Equipment Corp.

July 21

filed

cents)/

100,000 shares

Price—$5

of

stock (par 10
share.- Proceeds—To reduce bank

per

debts and for general

common

corporate purposes.

Office—New

Hyde Park, L. JL, New York. Underwriter—Myron A.
Lomasney & Co.,- New York. Offering—Expected today
(Aug/ 27).
: ;v /
:
North American

July 29

filed 150,000 snares of common stock
(par 10 /'
Price—To be supplied by amendment. Proceeds

cents).
—-For

working capital, advertising and sales expenses,
machinery.
Office—521 Park Avenue,
New York.
Underwriter—American Diversified Mutual
Securities Co.,
Washington, D. C.
'H-V-;
and

additional

•

• Northland Chemical Co., East Grand Forks, Minn.
Aug. 19 (letter of notification) 1,163 shares of class A
common

stock.

Price—At par ($100 per share). Proceeds
—To construct an additional steel
storage building and

fpr working capital.
•

Oak

June

Valley Sewerage Co.
(letter of notification)

$145,000 of 5V2%

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
and

to

—330

the costs and

pay

Main

St.,

Mantua,

expenses

N.

J.

disposal system
of financing. Officef

Underwriter—Bache

&

Co., Philadelphia, Pa. Offering—Expected in September.
•

Oak

June

on

to

1959; rights were tb have expired
July 31, 1959, but expiration date has been extended
15. Price—1% cents per share. Proceeds—For

working

capital.

(letter of notification) $125,000 of 5V2% first
mortgage bonds series of_1958. Price—At par. Proceeds
—To repay Oak
Valley, Inc. a portion of the cost of

tures

and

for

working capital. Office — c/o McNabb,
James, 40 Exchange Place, New York,
Underwriter—M. H. Woodhill, Inc., New York,

Sommerfield
N.
N.

Y.

Y.

,v

-

Aug.

3

(letter

of

notification)

300,000 shares of com¬
Price—$1 per share. Proceeds
Office—Alliance, Ohio. Underwriter—
Pearson, Murphy & Co., Inc., New York.
stock

(par 10 cents).

• Powell River Co., Ltd.
Aug. 20 filed 4,500,000 ordinary

Ltd., on the basis of seven shares of Powell River stock
for three shares of MacMillan & Bloedel
stock, whether
class A

or

class B. Office

—

1204 Standard Bldg.,

it Precision Industries, Inc.
Aug. 13 (letter of notification) 250,000 shares of
mon stock
(par 10 cents). Price—$1.15 per share.

Mantua,
Philadelphia, Pa.

&

Co.,
Offering—Expected in September.

Minn.

Underwriter—None.
Producers

Fire &

Casualty Co., Mesa, Ariz.
400,000 shares of common stock to be
offered for subscription by holders of stock
purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
and

sys¬

com¬

Pro¬
ceeds—For acquisition of electronic
checking equipment
and machine tool
equipment, and for working capital.
Office—2015 Northeast Broadway,

Price—$5

distribution

St.,

Bache

Van¬

C,, Canada. Dealer-Managers—White, Weld &
Co.* Wood, Gundy & Co., Inc., and Greenshields & Co.,
all of New York; and
Wood, Gundy & Co., Ltd., and
Greenshields & Co., Inc., of Canada.

agents

supply and

of

filed

brokers

of

share.
Underwriter—None.
per

Producers

its

Fire

Proceeds—For

&

Casualty Co.

working

capital.

its agreement with Brooks and certain

who
own
an
aggregate of 18,805
outstanding common stock, or approxi¬
mately 62.5% of such stock, and who have agreed to
accept tbte exchange offer upon effectiveness of the reg¬

of

its

istration statement.
Rozee

Bonus

*

Club, Inc.

July

29 filed 70,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—For general cor¬
porate purposes, including advertising and promotion..
and

expenses
112

W.

42nd

Kaufmann &

the addition of working capital.
Office—Street, New York. Underwriter—Jay W.
Co., New York.

St. Regis Paper Co.

June 26 filed

30,000 shares of common stock (par $5).
company proposes to offer this stock in exchange
outstanding shares of common stock of Lone Star
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. Regis will declare the
exchange offer effective if
The

for

95% of the outstanding shares of Lone Star common are
deposited for exchange, and may elect to do so if a lesser
percent, but not less than 80%, of all the Lone Star
and

will enable it to control the business
operations

policies of Lone Star.

St. Regis Paper Co.
24 filed 20,000 shares

June

..•<

of

common

stock

company in exchange for the com¬
of Chemical
Packaging Corp. on the basis
share of 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—
150 East 42nd
St., New York. Underwriter
None.
St. Regis Paper Co.
I
Aug. 12 filed 453,731 shares of common stock, to be of¬
fered in exchange for the
outstanding shares of the cap¬
ital stock of the Cornell
Paperboard Products Co.
stock

mon

one

—

on

the basis of .68 of a share of St.
Regis common for each
share of Cornell capital stock. The offer
will be declared
effective if 90% of the
outstanding shares of the

Cornell

stock are

deposited for exchange,
effective if 80% of said shares are
150 E. 42nd Street, New York.
•

Salant

and
so

may

be declared

deposited.

Proceeds—To

selling stockholders. Business—Company
leading producer of men's, boy's and juvenile pop¬
ular-priced utility and sports shirts, utility pants and
is

a

casual
and

loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New
Orleans, La. Underwriter —
Assets Investment Co., Inc., New
Orleans, La. The SEC

cents

be

Philadelphia, Pa. Underwriter—None.

has scheduled

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of

•

slacks.

Underwriters—Kidder,

Peabody

eral

whether

stop

a

offering.

a

hearing, to begin
order

should

on

be

Sept. 2, to determine

issued

suspending the

Oreclone

Concentrating Corp., 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.—
.

—

it Pacific Finance Corp.
Aug. 24 filed 160,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To be added to
the working capital of the
company, and may be initially
applied to reduce short-term indebtedness. Underwriters
—Blyth & Co., Inc., and Hornblower & Weeks, both of
New York;
•

Pacific

common stock (par 250).
share. Proceeds —For general corpo¬
rate purposes. Office—1202 Myrtle
St., Erie, Pa. Under¬
writer—John G. Cravin & Co., New York.
Offering—
Expected in September.

Price

"

:l—

'

■

Outdoor

'

_

Advertising

Co.

$1.50

per

it Radio City Products Co., Inc.
Aug. 17 (letter of notification) 100,000

shares of com¬
(par 25 cents). Price—$3 per share. Proceeds
machinery and electronic test equipment, envi¬
ronmental testing equipment, placing accounts payable
mon

stock

—For

on

discount basis, retiring trade notes, retiring loans out¬

standing,

research and development and for working
Office — Centre & Glendale Sts., Easton, Pa.
Underwriter—A. T. Brod & Co., New York, N. Y. Offer¬

capital.

ing—Expected sometime hi September.
•

(9/8-11)

—

Radio

Frequency Company, Inc.
(9/10)
(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.

Aug. 10 filed $850,000 of 15-year 6% subordinated deben¬
tures, due Sept. 1, 1974, with attached warrants for thepurchase of 30,600 shares of common stock, and, in addi¬
tion, filed 50,000 shares of common stock (par $5), of.

Aug.

which

40,000 shares

of

issuing company, and

Research Corp.
165,000 shares of common stock (par $1),
subsequently reduced by amendment to 115,500 shares,
of which 100,000 shares will be offered to the public.
Price—$8.50 per share. Proceeds—For general corporate

the

count

of

the

are

present

to

be

offered

10,000

holders

for

the

account

shares

for

the

thereof.

ac¬

Price—To

be

supplied (for each issue) by amendment. Proceeds —
purchase advertising structures and poster panels,

To

to pay Federal and state tax

liabilities, to purchase motor

trucks, to pay certain debts, and to assist in the purchase
two similarly engaged
companies. Office—995 North
Mission Road, Los Angeles, Calif.
Underwriters—Lester,
Ryons & Co., and Wagenseller & Durst, Inc., both of
Los Angeles.
*

•

12

Raub

Electronics

July 15 filed

-Office—1029 Vermont Avenue, N. W., Wash¬
ington, D.C. Underwriter—Weil & Co., Washington, D.C.
purposes.

of

•
Paddington Corp.
(8/31-9/2)
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
be supplied by amendment
(expected at $7.50 per share).
Proceeds—To repay bank loans, v/ith the

balance, if

to

be

New
Hentz

any,

added to working capital. Office—630 Fifth
Ave.,
Underwriters
Lee Higginson

York.
&

Co.

—

and

C.

E.

Unterberg,

Corp., H.
Towbin Co., all of

Pan-Alaska Corp.

'

Aug. 7 filed 2,612,480 shares of

common capital stock to
options held by Marine Drilling,
Inc. Latter company will, in turn, offer its stockholders
rights to purchase two shares of Pan-Alaska common, at

issued

20 cents

Inc.
July 28 filed 200,000 shares of class A stock. Priced— $3
per
share. Proceeds—To pay off mortgages and for
working capital. Office—Jamaica, L. I., N. Y. Under¬
writer—Robert L. Ferman & Co., Miami, Fla.
.

Republic Resources & Development Corp.

June 29 filed 1,250,000 unit shares of capital stock.

pursuant to

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
dollar

services; and to pay its pro rata shares of the
exploration expenses under its agreement with

three

other

sions

New York.

be

Realsite,

held

companies for joint exploration of conces¬
in the Philippines.
Office—410 Rosario St.,
Binondo, Manila, Philippines. Underwriter — John G.
Cravin & Co., Inc., New York.
Offering—Expected in
September.
Ritter

(P. J.)

Co., Bridgeton, N. J.

June 18 filed 4,827 shares of preferred

stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common

share, for each share of Marine Drilling stock.
Marine Drilling also plans to sell
250,000 shares of the
680,000 shares of Pan-Alaska it now owns. Underwriter
—Any stock not subscribed for by holders of Marine
Drilling will be publicly offered by Crerie Co., Houston,*.
Texas and Clark, Landstreet &
Kirkpatrick, Inc., Nash¬

(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

ville, Tenn., at

Brooks.

a

a

price of 20 cents




a

share.

stock

stock

of

Ritter

for

each

share

of

common

sto^ of
The exchange offer is being made by Ritter in

Office—

&

Salant, Inc.
(9/2)
Aug. 7 filed 100,000 outstanding shares of class A
capital
stock (par $5).
Price—To be supplied by amendment.

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank

share. Proceeds—For working capital, invest¬
ments and acquisitions. Office — 3 Penn Center
Plaza,

(par $5)

being offered by the

of

it Provident Management Corp.
Aug. 14 (letter of notification) 456,667 shares of non¬
voting class A common stock (par 50 cents). Price—60
per

35

stockholders

shares

common

shares

(no par) to be
offered, following a two-for-one stock split in September
to holders of record
of, and in exchange for outstand¬
ing class A and class B shares of MacMillan & Bloedel,

N.

water

—

/

—For expansion.

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
J;.. Underwriter

&

Porce-Alume, Inc.

31

the

Cer¬

Photronics Corp., College Point, L. I., N. Y.
June 9 (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
optical test equipment; purchase and installation of fix¬

March

of

Building, Plaza

Minneapolis,

Valley Water Co.

30

construction

Office—Soriano

vantes, Manila (P. I.). Underwriter—None.

•

accordance with

Sept

couver, B.

Underwriter—None.

30

Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock, being

offered for subscription
by holders of outstanding stock
at the rate of one new share for each
two shares held.
Record date June 2,

mon

Cigarette Manufacturers, Inc.

(859)

&

Co.

Jesup and Lamont, both of New York.

Samson

Convertible

Securities

July 15 filed 200,000 shares of

Fund,

common

Inc.

stock.. Price—To

supplied by amendment. Proceeds—For investment.

Office—23 Hazelton Circle, Briarcliff
Manor, N. Y.
Distributor—Samson Associates, Inc.
Sea View

Industries, Inc.

Gen¬

(8/31-9/3)

July 14 filed $420,000 of 7% convertible subordinated
debentures and 84,000 shares of common stock
(par one
cent). Price—$340 per unit of two debentures at
$100
and 40 shares of common stock at $3.50 per share.
Proceeds—To retire loans; for machinery and

par

equipment;

and to add to
working capital. Office—3975 N. W. 25th
Street, Miami, Fla. Underwriter—Michael G. Kletz &
Co., Inc., New York City.

it Seagraves Mining Co., Inc.
Aug. 5 (letter of notification) 300,000 shares of com-»
mon stock
(par 10 cents) to be offered for subscription
by stockholders; unsubscribed shares to public. PriceTo stockholders, 80 cents
per share; to public, $1 per
share. Proceeds—For exploration and
mining operations.
Office—3439 N. E. Sandy
Blvd., Portland 12, Ore. Under¬
writer—None.

it Seeburg Corp.
Aug. 21 filed $600,000 of Participations in the
Employee
Savings-Investment Plan, together with 30,000 shares
of common stock which may be
acquired pursuant there¬
to.
Office—1500 North Dayton
St., Chicago, 111.
it Service Life Insurance Co.
Aug. 25 filed 25,000 outstanding shares of common stock.
Price—$20 per share. Proceeds—To selling stockholder.
Office

400

West Vickery Blvd., Fort
Worth, Texas.
Underwriter—Kay and Company, Inc., Houston, Texas.
—

Sire Plan of Tarrytown, Inc.
July 13 filed $900,000 10-year 6% debentures and 18,000
shares of $3 cumulative,
non-callable, participating pre¬
ferred stock (par $10). Price—$100
per unit consisting
of one $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 Tarrytown, N. Y., and
alterations and construction thereon.

Office—115 Cham¬

bers

Street, New York City. Underwriter—Sire Plan
Portfolios, Inc., 115 Chambers Street, New York City.
Offering—Expected in September.

Skiatron Electronics & Television Corp.
Aug. 18 filed 172,242 shares of common stock (par 10
cents), of this stock, 128,500 shares were issued or are to
be

issued

pursuant to warrants issued in 1956; 13,742
are to be issued to various
persons in lieu of cash
services rendered, pursuant to authorization of the
directors in January 1958; 30,000 common shares are to
be offered by owner Arthur Levey for sale
by brokers.
Proceeds—For working capital. Office—New York City.
shares

for

Underwriter—None.

Sottile, Inc. (Formerly South Dade Farms, Inc.)]
(9/8-11)
<
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, repreContinued

on

page

36

'

36

,(860)

Continued from page

35

The Commercial and Financial Chronicle

Wis. Underwriter—Loewi & Co., Inc., Milwaukee,

van,

Wis.

outstanding stock, to be sold for the accounts
selling stockholders. Price—To be supplied by
Proceeds—To retire 70% of the common

renting

amendment.

invest

outstanding at the date of the stock offering; to
in the capital stocks of six
of the company's

seven

bank subsidiaries; to repay a bank

atock

loan of $6,400,-

000; to add to working capital; to retire certain longand to develop citrus groves. Office
—250 South East First Street, Miami, Fla.
Underwriter

—term indebtedness;

of three drive-in restaurants on company-owned
_

—Bear, Stearns & Co., New York.
Southeastern

Development Corp.,
Miss.

Hattiesburg,

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

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
per
in

will own at least 75%. Price
—$2.50 per share.
Proceeds—To be used to complete
building program of Southeastern and to expand other
divisions. Office—Hattiesburg, Miss. Underwriter—None.
chat the Development Corp.

^Southern California Gas Co. (9/29)
Aug. 24 filed $30,000,000 of first mortgage bonds, series
D, due Oct. 1, 1984. Proceeds—To repay short-term in¬
debtedness to Pacific Lighting Corp., the issuer's parent
corporation, which is expected to approximate $3,000,000 as of Oct. 1, 1959, with the balance to be used to
finance in part the costs of the company's construction
and expansion program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and Merrill Lynch, Pierce,
Eenner & Smith Inc. (jointly); White, Weld & Co. and
Eastman

Office-^1700

sites.

^

(PDT)

a.m.

on

the rate of

Chemical

Co.

8

—White
•

Sept. 29,

(9/1)

Aug. 11 filed 1,300,000 shares of common stock (par 50
-cents).
Price—$1 per share.
Proceeds—For working
-capital and to purchase products for company. Office—
615 Hillsboro St., Raleigh, N.
C. Underwriter—None,
but the company officials, who are making the offering,
may

pay

with

the

10%

a

sale

Southern

of

commission
their

Gulf

to

dealers

in

&

connection

Inc.

,

.

it Southern New England Telephone Co. (9/14)
Aug. 24 filed 689,000 shares of common stock (par $25),
to be offered for subscription to stockholders of record
Sept. 8, 1959, in the ratio of one new share for each 10
shares

then

held.

Price—$35

per

share.

Proceeds—To

advances from American

Telephone & Telegraph
Co. (owner of 21.3% of the
outstanding stock) which
are expected to approximate
$20,000,000, and the balance,
if any, to be used for
general corporate purposes. Office
—227 Church
St., New Haven, Conn.
Underwriter—
None.
•

Realty & Utilities Corp. (9/1)
July 21 filed 300,000 shares of common stock (par $1).
I*rice—To be supplied by amendment. Proceeds—To
pay
Joans and notes and for
working capital. Office — New
York City. Underwriters—Hirsch &
Co., and Lee Higgin'■

Corp., both of New York.

Southland

July 22

Oil

filed

1959

$1,000,000 of

Oil

and

.account of company and

holders.

Price

—

To

be

166,666 shares for selling stock¬
supplied by amendment.
Pro-

■jeeds—For working capital, etc. Office—Richmond
I., N. Y.

Hill,

Underwriter—S. D. Fuller & Co., New York.

Sports Arenas
18

filed

(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

Pinepotters, Inc. for bowling alley beds; $350,000 to pay
other
installations, fixtures and equipment; $85,000
to expand two
present establishments by
increasing the

lor

number of
six

alley beds by eight at Yorktown Heights and
at Wilton Manor Lanes, Fort

iooJ

on leaseholds,

Lauderdale; $300,000
telephones and utilities; and

■$395,000 for working capital. Underwriter—None.

Sports Arenas
Nov.

■cent).
-$6

(Delaware)

Inc.

18 filed

461,950 shares of common stock (par one
Price—At the market (but in no event
less than

PeL,share)- Proceeds—1To selling

—33 Great Neck

stockholders.

Sta-Rite

Aug-

Yonc.

Co.

/

stock,
Industries, Inc., the present

Aug. 3 filed 500,000 shares of outstanding common
to

offered

be

by Textron
thereof, to its stockholders on the basis of one
Textron Electronics stock for each 10 share3
Textron Industries stock held as of the record date.

holder

share

of

be supplied by amendment.
Office—10 Dor-u^:
Street, Providence, R. I.
Underwriter—None.

Price—To
ranee
•

"j"£ Marts

I tic.

•

July 29 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—For gen¬
eral

corporate

including

purposes,

the

acquisition

of

properties and expenses incidental to the
opening of stores. Office—210 East Main Street, Rocknew

store

Underwriter—D. Gleich Co., New York.

ville, Conn.
•

Transdyne

(9/15)

Corp.

Aug. 7 (letter of notification) 300,000 shares of common
stock

(par

one

cent)".

Price—$1

per

share. Proceeds—

plant; purchase of additional electronic
equipment; purchase of additional machine

For relocation of

laboratory

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.

Treasure

Hunters, Inc.
June 4 filed 1;900,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For salvage op¬
erations.
Office—1500
Massachusetts Avenue, N. W.„

Washington, D. C.

Underwriter—None.

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds — For investment
Office—South Main
Street, Greenville, S. C.
Under¬
writer—To be supplied by amendment.
—

it Truax-Traer Coal Co.
24 filed $800,000 of

Aug.

Stock

Purchase

I

Participations

Incentive

Plan,

in Employees
with 30,000

together

which may be purchased pur¬
suant thereto. Office—111 N. Wabash Ave., Chicago, 111.

shares

of

common

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%

Proceeds—For construction, instal¬
equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash, Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.

of

principal amount.

lation of machinery and

Sept.

owned

to

for public sale 550 shares of preferred stock
by it, at $310 per share, which were oversub¬
Statement effective Aug. 18.

scribed.

Tang Industries,
May 25 filed 110,000

Inc.
shares

of common stock (par 10
Price—$3 per share. Proceeds—-To purchase ma¬
chinery and equipment; for research and development;
for certain expenses and for working capital. Office—
49 Jones Road,
Waltham, Mass.
Underwriter — David
Barnes & Co., Inc., New York.
cents).

^Technical Materiel Corp. (9/14-18)
20 filed 85,000 shares of common stock (par 50
cents), of which 80,000 shares are to be publicly offered
and 5,000 shares to employees. Price—To be
supplied by

Aug.

amendment.

for

the

Proceeds—To

of

purpose

N.

Y.

be

added

to

carrying additional

working capital
inventories and

Office—700 Fenimore Road,

Underwriter—Kidder,

Peabody

Mama& Co.,

New York.

Road, Great Neck, N. Y.

Products,

Inc.

Underwriter

(9/8)

7 /iled ^,270 shares of

common stock (par $2),
52,100 shares are to be offered for the account
of the issuing
company and 66,170 shares, representing

of which

flock, are to be offered for

selling stockholder. Price

the account of

a

To be supplied
by amend¬
ment. Proceeds—For general
corporate purposes, mostly
in connection with
equipping a new plant and reducing
bank loans incurred for its
construction. Office
Dela-




—

Technology, Inc.
May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To pay off in
full the
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.
Wolf

Associates, Inc., Washington, District of Columbia.

★ Tennessee Gas Transmission Co.
Aug. 21 filed 473,167 shares of common stock, to be
changed for the

common

ex¬

stock of East Tennessee Natu¬

ral Gas Co.

on the basis of one share of Tennessee Gas
Common for 2.75 shares of East Tennessee common. This
offer is subject to various
conditions, one of which is
that all of the 5.20% cumulative preferred stock
($25

par)

of

East

redeemed

Tennessee

and

cancelled.

shall

have

East

Union Electric Co.

(9/10)

10, 1959, on the basis of one new share for each
rights to expire Sept. 30. The com¬
will also offer to its employees and those of its
subsidiaries shares not deliverable under the offering
10 shares then held;

pany

to

stockholders, and also 21,123 shares now held in the

treasury.

Price—To

be

supplied

by amendment.

Pro¬

general corporate purposes, including the
financing of additions to. plant and property and the
retirement of loans already incurred for these purposes.
Office—315 North 12th Blvd., St. Louis, Mo.
Under¬
writer
To be determined by competitive bidding.
Probable bidders: Lehman Brothers; White, Weld & Co.;
ceeds—For

Eastman

Dillon, Union Securities & Co. and Shields Sc
(jointly); Merrill Lynch, Pierce, Fenner & Smith,
Inc.
Bids—Expected to be received on Sept. 10, up to
11 a.m. (EDT).
Co.

• United Artists
Corp.
(8/31-9/3)
July 31 filed 100,000 shares of outstanding common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders. Office—729 Seventh Ave.,
New York. Underwriter—F. Eberstadt & Co., New York.

United Discount Corp.
July 23 filed 500,000 shares of common stock.

Price—

share. Proceeds—For general corporate pur¬
poses and to reduce indebtedness.
Office — 222 — 34th
Street, Newport News, Va. Underwriter—Willis, Kenny
& Ayres, Inc., Richmond, Va. Offering—Expected some¬
time during August.
$3.50

per

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, by
lease or purchase.
Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., la

President.

been

purchased or
is presently
of which 11-year

Tennessee

United

Industries Co.,

Inc., Houston, Texas

negotiating for the sale of $5,800,000
debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the
proceeds of which
will be applied to the redemption of the 5.20% cumula¬
tive preferred stock. Office—Tennessee
Bldg., Houston,
Texas. Dealer-Managers — Stone & Webster Securities

Aug. 5 filed 100,000 shares of 60 cent cumulative convert¬
ible preferred stock. Price — At par ($8.50 per share).
Proceeds—To be used to pay for construction of grain
elevator and balance will be used for additional working

Corp., and White, Weld & Co., both of New York.

Mo.

5%%

Terminal

Office

—-None.
•

Insurance

order

Gas

Speedry Chemical Products Co., Inc. (9/2)
July 31 filed 218,333 shares of class A stock
(par 50
■cents), of which 51,667 shares are to be offered for

by

Redpath, New

&

offered

roneck,

•

Nov.

Parker

Electronics

Textron

Aug. 7 filed 1,057,725 shares of common stock (par $10),
to be offered for subscription by stockholders of record

in

accounts receivable.

Ventures, Inc.

participations in the com¬
Exploration Program. Price—
$5,000 per participation (minimum is 2 participations).
JProcceds—For oil and gas exploration
program. Office—
2802
Lexington, Houston 6, Texas. Underwriter—None.
pany's

Is.

Auchincloss,

—

Southern

son

including ex¬
small oil and
gas
companies. Office—Meadows Bldg., Dallas, Texas.
Underwriters—Stroud & Co., Inc., Philadelphia, Pa., and

Co. of America.
The filing was
provide a prospectus for use by the
preferred shareholders who may wish to offer or sell
shares of the preferred and/or common stock.
Bear,
Stearns & Co., one of the preferred stockholders, initially

made

Office—7630 BisBlvd., Miami, Fla. Underwriter—Jaffee, Leverton,

Heiner Co., New York.

repay

Corp.
165,000 shares of $5 convertible preferred
stock (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
filed

1

Prudential

porate purposes, including expansion.

1959

Studebaker-Packard

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 blocks
of preferred stock are now held by two insurance com¬
panies—the Metropolitan Life Insurance Co. and the

Aug. 24 filed 135,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For
general cor¬
cayne

Co., St. Louis, Mo.

Jan.

shares.

Utilities,

Processes

Ltd., which owns and operates
a
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics 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; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D.
Lunt & Co., Buffalo, N. Y.; and Allen & Co., New York.

July

Finance

share for each five shares held. Price

supplied by amendment. Proceeds—For payment
of bank loans;
for payment of a note; for working
capital; for expenditures by Strategic-Udy Metallurgical

Kansas City, Mo.
(letter of notification) 23,169 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—For general corporate purposes. Underwriter

.

Frontier

one new

—To be

&

Thursday, August 27,

;

Proceeds—For general corporate purposes,

of

Stuart Hall Co.,

.

Southern

St., Bloomington,

Strategic Materials Corp.
June 29 filed 368,571 shares of common stock (par $1), to
be offered for subscription by common stockholders at

June

Dillon, Union Securities & Co. (jointly). Bids—

St., Los Angeles, Calif., at 8:30

building

Stelling Development Corp.
June 8 (letter of notification) 300,000 shares of common
stock (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.

Expected to be received at Room 1216, 810 South Flower
1959."

Washington

West

Underwriter—White & Co., St. Louis, Mo.

111.

*

ploring for oil and acquiring properties and

it Steak'n Shake, Inc. (9/15)
Aug. 24 filed 65,505 shares of common stock, to be of¬
fered by subscription by common stockholders of record
Sept. 15, 1959, on the basis of one new share for each
9 shares then held. Price—$4.62V2 per share. Proceeds—
For general corporate purposes, including the developing

of certain

*

Tower

Co.

July 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¬
pay bank indebtedness. Underwriter—Fulton Reid & Co.,
Inc., Cleveland, Ohio.
Offering — Expected in early
September.
•

Tex-Star

Oil

&

Gas

Corp. (9/4-8)
Aug. 12 filed $1,000,000 of 6% convertible debentures,
due Sept. 1, 1974. Price—At 100% of principal amount.

(9/2-4)

capital. Underwriter—Dempsey-Tegeler & Co., St. Louis,

United

States

Communications,

Inc.

(8/31-9/3)1

Aug. 5 (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¬
Office—112 Clayton Avenue,
East Atlantic Beach, Nassau County, New York. Under¬
writer—Heft, Kahn & Infante, Inc., Hempstead, N. Y.

tory and operating capital.

United Tourist

Enterprises, Inc.

Jan. 28 filed 4,500,000

shares of class A common stock
(par 50 cents). Price — $2 per share. Proceeds—For
development and construction of a "Western Village"

Volume 190
1,
'

Number 5876

■

;

.

.•

and for construction

■

of

.

.

.

:

•

:

The Commercial and Financial Chronicle
•
^
•;
'

Grand

a

.

(861)

.

Estes

Hotel

and

Con¬

Wyoming Corp.

take will be decided

vention

Nov. 17 filed 1,449,307 shares of

of Estes Park

shares

Hall, to be constructed in the immediate vicinity
Chalet, located in Larimer County, Colo.
Office
330 South 39th Street, Boulder, Colo.
Under¬
writer—Mid-West Securities Corp., Littleton, Colo.
—

Val Vista Investment

June

29

filed

80

Co., Phoenix, Ariz.
investment contracts (partnership in¬

common

stock.

Of thess

1,199,307 are subject to partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered
initially to share¬

holders of record Nov.

Universal Finance Corp.

July 13 (letter of notification) 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.

1, 1958, in the ratio of

share for each 2.33 shares held

share.

per

on

that date.

one

new

Price—$4

Proceeds—$300,000 will be used for payments

contract to purchase shares of International
Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬

on

ance

tion
an

on shortly. Proceeds—For
construc¬
tion program. Offering—Expected before the end of the

year.

company; $500,000 for additional capital contribu¬
Great Plains Development Co.; and
$300,000 as

to

additional capital coiftribution to Great Plains Mort¬

■

'
.

.

•

Buckingham Transportation, Inc. (9/21-24)
July 17 the company sought ICC approval for the
of

suance

$1).
111.

250,000 shares of class A

common

stock

is¬

(par

Underwriter—Cruttenden, Podesta & Co., Chicago*
Price—$10

per share.
New Name—The company's
will be changed to Buckingham
Freight Lines.

name

company; $500,000 for capitalization of a title insur¬

ance

37

Central & Southwest Corp.

May 19 it

was

To

announced

.

tnat the

company in viqw ot
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¬

terests) to be offered in units. Price—$5,378.39 per unit.

gage Co.

Proceeds—For

writer—None.

writers

•

Probable bidders: Blyth &

curities Co.

investment.

Underwriter—O'Malley Se¬

Statement effective Aug. 11.

Variable Annuity Life Insurance Co. of America

April 21

filed

Price—No
contracts

$4,000,000 of Variable Annuity Policies.
than $120 a year for annual premium
and no less than $1,500 for single premium
less

contacts.

Proceeds—For

investment, etc.

M Street, N. W., Washington, D. C.

Office—1832

Underwriter—None.

Victoria

Raceway
May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—
To construct and operate a racing plant; and for work¬
ing capital and other corporate purposes. Office—Notre
-Dame Avenue at King Street, Winnipeg, Canada. Under¬
writer—Original underwriter has withdrawn.
•

Vita-Plus

Beverage Co., Inc.
iAug. 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.
Offering—Ex¬
pected sometime in September.
Vulcan Materials Co.,

Inc.

June 29 filed 10,000 shares of 6J/4% cumulative preferred
stock and 560,000 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¬

porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., fot the business and assets of
that company.
Office—Mountain Brook, Ala. Statement
became effective

on

July 20.

• Wadded &
Reed, Inc. (9/14-18)
Aug. 17 filed 370,000 shares of class A common stock (par
$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
Proceeds—To redeem at 105% of the par value

share.

thereof,

1,500 shares of class A preferred stock ($100
par) and at 120% of the par value thereof, 375 shares of
$100 par preferred stock now outstanding and the bal¬
ance will be added to the
"in anticipation of further

company's working capital
expansion of its business."
Office—20 West 9th St., Kansas City 5, Mo. Underwriter
—Kidder, Peabody & Co., New York.
Waltham

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¬
fice—49 W. 32nd

Street, New York 1, N. Y. Underwriter
Republic Underwriters Corp., same address.
offering is expected in September.

—The First

The
•

Wellington Electronics, Inc.
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¬
turers; and for working capital. Office—65 Honeck St.,
Englewood. N. J. Underwriters—Amos Treat & Co., Inc.,

and

Truman,

Offering

—

Wasserman
Expected

& Co., both of New York.
this week.
Statement effective

July 8.
West

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

St., Everett, Wash. Underwriter—Blyth & Co., Inc., Los
Angeles a,nd New York.
29

filed

212,000 shares of common stock and op¬
tions to purchase 172,701 shares
(plus the underlying
shares). The company proposes to make a public offer¬
ing of three blocks of stock in amounts of 40,430, 38,570
and 36,935 shares, at prices of $1, $2 and $3, respectively
The remaining 96,065 common shares and options for the
172,701 shares (together with shares underlying such
options) are to be offered by the present holders thereof
The options permit purchase of the underlying shares
at $1 per share.
Proceeds—For general corporate pur¬
poses. Office—2801 East Colfax Ave., Denver, Colo. Un¬
derwriter—None.

100,000 shares

of common

and 40,000 shares of preferred stock
At

par.

Proceeds—For construction

stock

(par $25).
and

(par $10)

Price

equipment

None.

...

,

'

-

the

establishment of

testing laboratory.
Office—Stamford, Conn. Underwriter—Myron A. Lomas¬
ney & Co., New York.
a

new

Prospective Offerings
^ Allied Radio Corp.
Aug. 25 it was reported that a registered secondary of¬
fering of common stock is being planned. Proceeds—To
selling stockholders.
Underwriter—White, Weld & Co.

-A-American Electric Power Co.

(10/22)

Aug. 26 it

was announced that the company plans to
sell 1,200,000 shares of common stock. Proceeds—To be
used principally .'to /retire $52,000,000. of

notes, due 1959.
Underwriter—To be determined by competitive bidding.

Probable bidders: Halsey, Stuart & Co. Inc., Eastman
Dillon, Union Securities & Co., and The First Boston

Corp., all of New York. Bids—Expected to be received
on

Oct. 22.

reported that

the company will register
debt and equity securities later this year. Proceeds—For
was

construction

of

a

gypsum

American Telephone & Telegraph Co.

(11/17)

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.

Aug.

Co.

it Chicago Burlington & Quincy R R.

The First Boston Corp. and Halsey,
(jointly); Morgan Stanley & Co. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
&

received

Inc.

Nov. 17.

on

(9/9)
noon

(CDT)

Sept. 9 for the purchase from it of $3,150,000 of equip¬
ment trust certificates to mature
semi-annually from
March 1, 1960 to Sept. 1, 1974, inclusive. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
on

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
due

Oct.

1, 1984. Proceeds—For 1959 construction pro¬
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
gram.

Inc.;

Merrill Lynch, Pierce, Fenner & Smith Inc. and
White,
Weld & Co. (jointly); Morgan
Stanley & Co. Registration
—Scheduled for Sept. 11. Bids—Expected to be received

to 11 a.m., (New York Time) on Oct. 8 at the office
120 East 41st Street, New York.

up

of the company,

Consolidated Edison Co. of New York Inc.

(12/1 \
reported that the company plans the is¬
$50,000,000 first and refunding mort¬
gage bonds. Proceeds
For construction
expenditures.
Underwriter—To be determined by competitive

July 30 it

suance

was

and sale of

—

bidding.
bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected

to be received

Atlantic City Electric Co.

Aug. 3 it

was reported that the directors are contemplat¬
ing the issuance and sale of a small amount of common

stock, after a three-for-two stock split.
Last equity of¬
ferings were underwritten by Eastman Dillon, Union Se¬

on

Consolidated

May

Dec. 1.

Natural

Gas

Co.

19,

James Comerford, President, announced that
company plans later in year to issue and sell
$20,000,000
of debenture
bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by
competitive
able bidders:

bidding. Prob¬
Halsey, Stuart & Co. Inc.; Morgan Stanley
(jointly); White, Weld
Webber, Jackson & Curtis (jointly).

& Co. and The First Boston
Corp.
& Co. and Paine,

bidders:

Stuart

determined

Bids will be received by the
company up to

products plant in

Albuquer¬
que, New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.

Probable

be

by competitive bidding.
Co., Inc. and Harriman Rip¬
ley & Co., Inc. (jointly); Lehman Brothers and Lazard
Freres & Co.
(jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith Inc. jointly.
—

Probable

American Gypsum Co.

July 15 it

Cyprus Mines Corp.
July 15 it was reported
shares of

a

that

secondary issue

approximately

common

stock

1,000,000

will

istered in the Fall. Underwriter—Merrill
Lynch,
Fenner & Smith Inc., New York.
Dallas

Power &

Aug. 3 it

be

reg¬

Pierce,

Light Co.

reported

that the company contemplates
the issuance and sale of about
$20,000,000 of senior se¬
was

curities &

curities, but type

York.

mined.

Co.; and Smith, Barney & Co., both of New
Offering—Expected during the latter part of

bidding.

this year.

Aurora Plastics Corp.
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
airplane models.
Underwriter — Burnham & Co., New
York.

•

Barton's Candy

Corp.
reported that the

is planning
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. Gross sales
volume in the fiscal year ended June 30 was reportedly
July 15 it
an

was

issue of common

stock.

company

Business

—

The

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.
C.

Underwriter

-—D. H. Blair & Co., N. Y.
Benson

June

10

it

Manufacturing
was

announced

plates an offering of

Co., Kansas City, Mo.
that the company contem¬

$4,500,006 of

ceeds— For expansion program

common stock.
Pro¬
and additional working*

capital. Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers
and beer barrels, aluminum curtain wall sections for the
industry and

other proprietary products. Un¬

derwriter—S. D. Fuller &
Boston

Edison

Co., New York.

short-term bank loans.

Underwriter—To be determined

Co., Inc.; The First Boston Corp.; Harriman Ripley &

Co. Inc.; Lehman
Boston

Brothers; and White, Weld &: Co.

Edison

was

stockholders

First

The

last rights

Boston

Brooklyn

Aug.

19

plating

it

offering

was

underwritten by The

Corp., New York.
Union

Gas

Co.

reported that the company is contem¬
additional equity financing, the form it will

was

some

Union Securities &

Co.; Blair & Co., Inc. and Baxter &
(jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc. and Merrill Lynch, Pierce, Fenner & Smith
Inc. (jointly); Salomon Bros. & Hutzler; Equitable Se¬
curities Corp.; Eastman Dillon, Union Securities &
Co.;
Lehman Brothers; Blair & Co. Inc.; The First Boston
Corp. Offering—Expected in the latter part of this year.
Co.

Duquesne Light Co.
Aug. 3 it was reported that the company is contemplat¬
ing the issuance of an undetermined amount of subor¬
dinated

convertible

determined

debentures.

Underwriter

—

To

be

by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co. (jointly);
White, Weld
& Co.; The First Boston Corp. and
Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly). Offering—Expected later this
year.

Essex Universal

Corp.

June

15 it was reported that the company in the next
few months expects the issuance and sale of about
$2,-

000,000 of debentures.
June

30

the

Bank

& Trust Co.

Directors

approved and the stockholders
approved on July 14, the offering of 108,904 shares of
new capital stock to stockholders of record
Aug. 7* 1959;

rights to expire

on

Aug. 28, 1959. Price—$30 per share.
surplus. Underwriter

Proceeds—To increase capital and
—None.
•

Florida

Aug. 17 it

Co.

reported that at a meeting to be held Sept.
will consider issuing 271,553 shares of
common stock, to be offered to stockholders on the basis
of one new share for each 10 shares held as of the record

July 23 it

& Co. Inc.; The First Boston
Corp.; Salomon Bros.
Hutzler; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Eastman Dillon,

&

Federation

by competitive bidding. Probable bidders: Halsey, Stuart
&

or types has not as yet been deter¬
Underwriter—To be determined by competitive
Probable bidders: (1) For bonds: Halsey, Stu¬

art

Co.

July 23 it was reported that at a meetir.g to be held
Sept. 2 stockholders will consider issuing not more than
$15,000,000 of first mortgage bonds. Proceeds—To retire

date.

plant and for working capital
Office—30r
Montgomery St., San Francisen, C Jif.
TTndprwriler-

company's




and for

—

of

Under¬

Corp. (9/10)
Aug. 10 filed 150,000 shares of class A stock (par $1).
Price—$3 per share. Proceeds — For general corporate
purposes, including the discharge of various indebted¬
ness and the purchase and installation of new
equipment;

2

Western Wood Fiber Co.

March 5 filed

Casper, Wyo.

York Research

building

Western Empire Life Insurance Co.

June

Office—319 E. "A" St.,

with

Power &
was

the SEC

Light Co.

(10/27)

reported that the company plans to file

$20,000,000 of first mortgage bonds. Pro¬

ceeds—To help finance the company's construction pro¬

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc. and Kidder,
Peabody & Co. (jointlv); Blyth & Co., Inc. and Lehman
Brothers (jointly); White, Weld & Co., and The First
Boston Corp. Bids—Expected Oct. 27.
gram.

Continued

on

page

39

38

The Commercial and Financial Chroniclz

(862)

Continued jrom page

3 V2% stock dividend on the

a

37

stock

mon

Gateway Airlines,

•

payable

Inc.

July 30 it was reported that the company will make an
initial common stock offering. Proceeds—To buy planes

to

Halsey,

York

stockholders

North American
Dec. 1 it

Last bond issues

Aug. 25 it

this company may issue

and sell

is

it

reported
300,000 shares of class A
ceeds

an

common

offering of 275,000 to
stock is planned. Pro¬

To selling stockholders.

—

Becker

that

was

&

Underwriter

Co., Chicago and New York.

A.

—

Kansas

Registration—

W

vote

6

to

approve

outstanding shares

2-for-l

a

stock

naturally

Our

split

stock

common

vestor

rity

a

against

It tends to
way

of

to go

Report

to

new

the

The

complexion

ment

market

something of
in

a

bit

have

more

the

invest¬

has

undergone
change this week
of

consequence

which

of

developments

tended

caution

to

promote
the

on

part

a

of

prospective buyers.

^

Perhaps

the

immediate
slow

down

secondary
very

the

and

obvious

calendar

months

most

Influence

important
tending

markets,

new

ahead.

the

This

both

issue,

building

for

up

to

is
of

weeks

the
the
and

development




week

a

On

of

to speak.

brings a halt
aggressive de¬

been

new
or

so

apparent,
capital market,

to

and

advanced

in

naturally are
slowly in the be¬

go

shade

better,

as

those

Pacific
the

Gas

first

of

the

porate borrowers.

generation

bills in

more

5s

.

big operations

letdown in

Pipe

-

-

Line

Salomon

-

Co.

that

reported

was

sell

;\.V

this

J

company expects

$40,000,000 to $50,000,000 of

to

securi¬

new

Inc., both of New York.

R R.

v

(9/2)

by the company up to noon (EDT)
Sept. 2 for the purchase from it of all of $1,500,000
equipment trust certificates, series J, to be dated
Sept. 1, 1959, and to mature in 15 annual instalments
from Sept. 1, 1960 to Sept.
1, 1974, inclusive.
Probable

gregation
price

of

&

demand

Electric

Co.'s

new

specified
the

with

paying

99.36

and

99.31999.

a

5%

winning

the

in¬
ag¬

company

the

a

runner-up

rate, while both commercial

at

Stuart

West

July

Florida

13

it

register

Reoffering of the issue, priced
100
to
yield 5%, reportedly

found investors

a

bit

on

the

cool

Inc.;

Natural

Gas

Co.

that

* Western Massachusetts

1989.

plans

company

Electric

Cos.

to

Under¬

common

(10/21):

sale

of

$8,000,000

Underwriter—To

be

first

mortgage

determined

bonds

due

by

competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Eastman Dillon, Union Securities & Co.; Equitable Secu¬
rities Corp. and
Lee Higginson Corp.
(jointly); The
First Boston Corp. and White, Weld & Co:
(jointly);
Blyth & Co., Inc. Bids—Expected to be received up to
11 a.m. (EDT) on Oct. 21 at the office of the
company,

To be

201 Devonshire

•

St., Boston, Mass.

* World Fidelity Life Insurance Co.
Aug. 17 it was reported that the company plans to use
its best efforts to register
5,000,000 shares of common
stock with the SEC. Price—$1
per share. Office—314
First. National Bank Bldg., Colorado
Springs, Colo.

•

factors which helped to stir
interest in this big one.

were

investor

protection against the pos¬
an

early

call

Makes

for

Decision

That

the

non-callable

clause

plenty of authority with
investors these days was indicated
by the hearty welcome accorded

General Motors Acceptance Corps's
$125 million of 21-year debentures

carrying a 5%
priced at 100.
This

one

rate

coupon
-

was,

and

*

.

of

a

negotiated

deal permitting bank¬
the company to meet the
indicated demands of institutional
and

Investors
ease

more"

of

operation.

a
-

readily

than

in

competitive bidding
1

•

•

'

';

ttie

non-callable

five-years,

plus

the

provision
off-the-

beaten-path maturity undoubtedly

the General
Corp.'s $125

debentures

new

market this week

the

on

instead of next

week

as
originally
scheduled
surely brought a shift in the totals

for

each

It

period.

swelled

total

of

ensuing

.

the

the

week

ness-that

has

week?s

current

offerings

impoverished

course,

Difference

a

to

put
Acceptance

Motors

Debentures Move

million of

But

&

reported that this company plans the issu¬

was

and

ance

GMAC

for

Bros.

(9/15)

the

$1,750,000 of notes and

Aug. 25 it

sibility
of
redemption.

the

Salomon

stock.
writer—Beil & Hough Inc., St. Petersburg, Fla.

on

no

Co.

reported

was

presumably
said
market
observers, because the issue car¬

ried

&

•

•.

3.824%—

well above the prevailing central

Halsey,

Hutzler.

side,

ers

Both groups

offering
—

being

bonds, due
1991, on which the bids of major
banking groups were separated by
only 40 cents a bond or little more
than $25,000 for the entire deal.
terest rate

Treasury, this week, paid
a

it

and

carries

million

about

now

offered.

$65

on

—

lief that yields in the weeks ahead
will be at least as good, if not a

Gas

discussion

yields

volume

Pacific

naturally has served

bill

again.

Accordingly, those with funds to
disposed to

which

The

Underwriter

bankers'

been

was

rates and in the rates
charged by
commercial banks to prime cor¬

bank

have

to reflect the

the highest rate

-

.

of

(jointly).. Bids—Expected to be
Registration—Planned for Sept. 21.

top of that, there has been
stiffening in basic money

generate

r

Bids will be received

Co.

One of

possibilities of another markup in
the
Federal Reserve Rediscount

than

&

paper

ago.

renewed

rates

:

(8/27) ~

of

* Wabash

Railway Commission for author¬

Bids—Expected to be received

Oct. 28.

invest

so

had

chiefly in the
until

so

in¬

secu¬

possibility

somewhat

t

»

derwriters—Lehman Brothers and Merrill
Lynch, Pierce,

Securities Corp.; The First Boston Corp. and

on

enough in the
corporate investments

which

;

Fenner & Smith

help finance the company's con¬
Underwriter—To be determined by

(jointly).

Barney

assure

around and

mand

Co.

potential

the

State

program.

received

feeling of greater

being "left behind"

Reporter's

Rr

Smith,

(par $20),

the

late

,r

ties, probably in units. Proceeds—To build a pipe line
■from West Texas to the Arizona-California border.' Un¬

Proceeds—To

& Webster

of its

gives

for

'

Halsey, Stuart & Co. Inc.;

it Transwestern
issue

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc. and Lehman Brothers (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith, Inc.; Stone

Louis

of

bidders1:

sale

Aug. 25

determined

(Mo.)
(10/8)
reported that the bank's stockholders will

was

Oct.

on

75,000

;

(10/1)

Proceeds—To reduce bank loans.

year.

Aug. 19 it

*

in its own name. The division is planning
25-year sinking fund debentures. Under¬
writer—Paine, Webber, Jackson & Curtis, New York.
Offering—Expected sometime late in September. ?'
the

Puget Sound Power & Light Co. (10/28)
May 15, Frank McLaughlin, President, announced com¬
pany plans to issue and sell first mortgage bonds re¬
portedly in the amount of $20,000,000, later in the year.

(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
St.

Co.

'

$25,000,000

—

Oct. 14.

Inc.; The First Boston Corp. and Blyth &
(jointly); Equitable Securities Corp.; White,

of

.

Pacific

Planned

—

•

..

& Hutzler.

'bidders:

Weld & Co. and Shields & Co.

Bank

Registration

,

Co., Eastman Dillon, Union Securities & Co., Merrill
Lynch, Pierce, Fenner & Smith Inc., and White, Weld &
Co. (jointly); The First Boston
Corp. and Harriman Rip-

City

Manchester

20.

•

Sylvania Electric Products, Inc.
.Aug. 19 'it was reported that this division of General
Telephone & Electronics Corp. is preparing to borrow

plans

Price

■

con¬

-on

Stuart & Co.

..

Bros.

competitive bidding: Probable bidders: Halsey, Stuart &
Co. Inc.; Equitable Securities Corp.;
Kidder, Peabody &

was

Inc.

Probable

that this company has applied

was announced

Nebraska

struction

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,

Co.,

the

bonds.

G.

Expected sometime this week.

Dec. 29 it

35-year

(EDT) on Aug. 27 for
$6,000,000 of equipment trust certificates, maturing in
15 equal annual instalments,
commencing Aug. 1, 1960.

Philadelphia Electric Co. (10/14)
Aug. 5 it was reported that the company is planning to
file with the Securities & Exchange Commission and the
Pennsylvania P. U. Commission $50,000,000 of 30-year

^Jostens, Inc.
25

/
sell

Bids will be received up to noon

ity to issue up to 200,000 shares of preferred stock (par
$100). Proceeds—For capital expenditures. Underwriter
—Blyth & Co., Inc., New York.

Underwriter—Blyth & Co., Inc., New York.
Aug.

1

"

it plans to issue and
debentures. Proceeds—For

announced

Oct.

on

Southern

-

increase

Northern Natural Gas Co.

additional stock.

some

that the company

announced

was

Proceeds—To

July 31 it

possibility that

a

been

*'■-/- --_:•(.

.

of

September.

Underwriter—Blyth & Co., Inc., New York.

Corp.

reported that there

was

cur¬

have

program.

received

(10/1)
July 31 it was reported that the company plans the is*
suance of about $20,000,000 of debentures.
Proceeds—To
finance a part of the company's construction
program.

to

^ Hoffman Electronics

issues

Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;. Morgan Stanley & Co.
Bids—Expected to be

Northern Natural Gas Co.

placed

were

Previous

V

company

struction

an of¬
$10 per
capital and surplus. Un¬
derwriter—John M. Tait & Associates, Cincinnati, Ohio

the Territorial Public Utilities Commission to issue about

bonds.

24

$70,000,000

-

Equitable Life Assurance Co.

fering of 950,000 shares of capital stock.

Telephone Co.
Aug. 3 it was reported company received approval from
new

bank loans incurred for

repay

program.

(10/20)

-

Corp., Kidder, Peabody & Co., Lee Higg.inson
and White, Weld & Co. (jointly); Blyth & Co..
Bids—Expected to be received sometime in Decem¬
ber. ■ \ :; ", : ::

Hawaiian

$4,500,000 of
privately.

construction

Aug.

Corp.

Underwriter—None.

shares held.

seven

Co.

Inc.

share of common

new

Underwriter—To be

rities

has received approval

one

& Gas

S^-C. McMeekin, President, announced plans
approximately $8,000,000 of bonds in December,

^ Southern Bell Telephone & Telegraph Co.

Dillon, Union Securities & Co. (jointly); Equitable Secu¬

stock, to be offered first to
of

the basis

on

stock for each

of

sale

;

./J.

placed privately.

(9/21)

and

errill Lynch, Pierce, Fenner & Smith Inc. and Eastman,

Telephone Co.

common

or

Electric

1959.-Proceeds—To

.

from the Territorial Public Utilities Commission to issue

209,000 shares of

issuance

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
ompetitive bidding. Probable bidders: Lehman Brothers;

share.

company

the

approved

>

75,000 shares of present com¬
150,000 shares ;of new common

22,

sell

to

New

Electronics, Inc.
reported that the company plans to regis¬
133,000 shares of common stock (no par). Price—$3
per share. Proceeds—For working capital and expansion
of plant facilities, and for hiring more engineers. Office
—Newton, Mass. Underwriter—G. Everett Parks & Co.,
Inc., 52 Broadway, New York. Offering — Expected in
late September. Registration—Expected week of Aug. 31.

reported

June

plans issuance

company

The ICC has approved the proposed
split. Underwriter—Blyth & Co., Inc.,

York.

rent

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Morgan Stanley & Co.
Bids—Expected to be received on
Sept. 21.
>"

&

(par $5),

South Carolina

determined

was

was

Telephone & Telegraph Co.

■

additional

an

(par $2.50).

New

/

/

*

directors

21

stock

mon

stock

Underwriter—To be named later in New

New England

July

ter

Aug. 3 it

this Fall of

two-for-one stock

State.

-

-

.■ ••

-

an

$45,000,000 of 35-year debentures.

Stuart

Ryder System Inc.-

.Aug. 3 it was reported that the

was

days

-

,

Walden, Harris & Freed, Inc., 580 Fifth Ave., New York,
Y. Registration—Expected today
(Aug. 27)..
/ J
*

Mail OrderCo., LansingfMich.

Lansing, Mich.

Harrison

Hawaiian

few

t

.

N.

—

Co. Inc.; Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co. (jointly); Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Lehman Bro¬
thers; Stone & Webster Securities Corp. Bids—Expected
to be received up to 11 a.m. (EST) on Nov. 24.

:

.

,

Co., New York.

ir Rouiette Records, Inc. •
~
~
Aug. 26 it was announced that the company intends to
file 300,000 shares of common stock (par one cent). Price
—$3.50 per share. Proceeds—For expansion. Office—659
10th Avenue, New York City. Underwriter—Ch'auicey,

announced company plans to register in
issue of about $500,000 of common stock.
Price
To be supplied by amendment. Proceeds — For
expansion and working capital. Office—130 Shepard St.,
a

^ Gulf States Utilities Co. (11/24)
Aug. 20 it was reported that the company plans the is¬
suance and sale of $16,000,000 of first mortgage
bonds.
Underwriter—To be determined by competitive bidding.

Aug. 6 it

Louis, Mo.

Aug. 26 it

by Blyth & Co., Inc.

bidders:

about Oct. 8, 1959; rights

or

about

or

on

-^National

the company plans to reg¬
ister abou,t $15,000,000 of convertible debentures or pre¬
ferred
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
of the recently acquired Booth-Kelly Lumber Co. Office
—Olympia, Wash. Underwriter—Financing in past has

Probable

on

Inc.

was

Underwriter—Allen &

common

Telegraph & Telephone Co. Ltd.
Aug. 17 the Nova Scotia Board of Commissioners of Pub¬
lic Utilities approved a
subscription offering by*-this
company to its stockholders of 264,013 shares of common
stock, to be offered on the, basis of one new share of
common stock for each seven shares held of record July
24. Warrants will expire Sept. 30. Price—$13 per share.
Proceeds—For capital expenditures; Underwriter—None.

\

Georgia-Pacific Corp.

been handled

about Nov. 2. An offering of 45,000 shares
stock (par $10) would be issued

or

Thursday, August 27. 195&

.

.

reported-mat the company plans some ad¬
ditional financing.- Business—New York puunshing firm.

Maritime

Aug. 19 it was reported that

•

expire

St.

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. •

Aug. 3 it

Oct. 22.
Proceeds—To increase
capital and surplus. Underwriter—G. H. Walker & Co.,

Aug. 28.
General

on

additional

House

Random

new com¬

(par $10) outstanding, if approved, would be

to stockholders of record

Underwriter
— Planned: for

general corporate purposes.
Dunne & Co., New York.
Registration
for

and

of

150,000 shares of

.

but

just

figure

unless
been

about

some

kept

busi¬

for

only

next

issue

week

vestment Co.'s
debentures

Monday,
tiated

is

size

_

on

Associated

$50 million of

now

on

naturally

route.

of

the

slate

by; the

the

on

slow burners is speeded up.

The

the

for

,

tap
In¬
now

for

nego¬

■

Volume

Number 5876

190

.

.

.

The Commercial and Financial Chronicle

(863)
DIVIDEND NOTICES

DIVIDEND

NOTICES

QIVIPEND

NOTICES

DIVIDEND NOTICES

DIVIDEND

ROBERTSHAW - FULTON
KENNECOTT COPPER

CONTROLS COMPANY

COMMERCIAL SOLVENTS

CORPORATION
161 East 42d

Street, New York, N.Y.

the

meeting

the

of

Directors of Kennecott

poration held today,
bution of

$1.50

per

DIVIDEND

Board

of

-

was

A

dividend

share

cash distri¬

share

the

de¬

this

has

record

business

of

Septem¬

(5c)

of

payable

on

close

of

par

SUNDSTRAND

Stock

on

JESSUP, Secretary

CORPORATION

at

MR

CONTROLS

20,

the close of busi¬

September

10,

A regular

share has been declared on the Common
Stock payable September 21,1959 to stock¬

regular quarterly
dividend of 2 5jJ per share on

COMPANY

DIVIDEND

A

dividend
share

a

the

ONE

of

has

been

DIVIDEND

The

15,

1959.

The

books of the

be

on

per

stock

transfer

ber

Company will not

HERVEY

.

Directors

September 10, 1959.

at the

record

UNITED GAS

President-Secretary

D. W. JACK

IRON

FUEL AND

The

Board

Directors

of

of

The

Colorado

percent common

BAKING

COMPANY

tember
The

Preferred Dividend No. 83

stockholders

1,

y '

stockholders of record

September 11, 1959.

at

the

the

on

•

.

holders

stock
ness

at

a

of

record

the

close

of

such

of

bush

September 11, 1959.

The stock transfer books will
not

be closed.
WILLIAM FISHER

B

$50

30th

dividends
holders

to

on

Sep¬

declared
62 Vs

of

cents

par

value

per

share

value

par

the

to

be

record

of

the

of

given

a

meeting of the

Board of Directors of

preferred

September

the

close

of

who

en¬

are

the Common
Corporation,
payable October 1,1959, to
share on
Stock of the

Amphenol-

Borg Electronics Corporation

stockholders of

held

the

of

today

a

quarterly dividend

thirty-five (35tf)

per

share

was

common

interests

interest

their

stock

1959,

the

to

record

at

stockholders

the

to

Marine

of

of

record at

business

on

September 10, 1959.
B. M. Byrd

Secretary

August 25,1959

the close of business

UNITED CAS

September 16, 1959.

„

SERVING

dividend

or
to buy a frac¬
sufficient
to
round

dividend

The

share.

stock

close

declared, payable September 30,

Fred G.

option to sell their frac¬

an

tional-share
full

at

stockholders

tional-share

out

Chicago—At

receive iractiWral-sharer interests

result

a

will

payable

are

September 1st.

on

common

titled

regular quarterly
dividend, for the third quarter of the year, 1959, of 55^ per share
on the outstanding
Common Stock, payable October 1, 1959, to




series

business

Common Dividend No. 58

T

dividend

quarterly

These

The Board of Directors has declared this day

record

also

a

per

to

stock.

as

-«

Directors

of

date declared

and one-half cents (37

DIVIDEND NOTICE

1959.

Board

Those

■4

of

1959

8,

share on the series A $50
preferred stock, and 68% cents

day a quarterly dividend
the outstanding $5.50 dividend Preferred
to

2

a

payable October

per

The Board of Directors has declared this

Stock, payable October 1, 1959,

declared

dividend

this

dividend of thirty-seven -

today, Thursday,

regular

v

has

Dividend Notice

common

•5-.

★

B0RG

CORPORATION

The Board of Directors-

Secretary i

stock

close of business

Dividend Notice

HEN0T
THE COLORADO

Sec'y.

on

LOUISIANA

IHREVSPDRT,

August 20th,

share

T

CORPORATION

Illinois

Fuel and Iron Corporation

per

Secretary

i

August 21, 1959

August 21, 1959

$1.37^2

J. EGER, Secretary

JAMES A. Win
August 19, 1959

close of business

V

of

GERARD

The transfer books

1, 1959 to stockholders of

J. OSBORN

CONTINENTAL

(50^) per share on the common
Stock, payable October 15, 1959, to
stockholders of record at the close
of business on September 15, 1959.

1

Rackford,

the Common Stock

on

of International
Harvester Company have declared

will not be closed.

J. L ANDSTROM

Vice

today

dividend of 44 cents

September t, 1959.

Exec. Vice Pres. &

G.

per

Company, payable Octo¬

record

closed.

a

share

of the

September

of

Board

declared

payable October 1, 1959,

close of business

NOTICE

on

stockholders of record at the

to

pay¬

September 10,1959.

DOLLAR

declared

of

shareholders

quarterly dividend of 37^c

holders of record at the close of business

September 19,1959, to

181

capital stock of this Com¬

pany,

i

NO.

common

able

company

the

Directors

quarterly dividend No. 178 of fifty-

clared

a

The

cents

STOCK

The Board of Directors de¬

stock,

COMPANY

to

DIVIDEND NOTICE

UTILITIES

HARVESTER

Sep¬

1959

1959.

COMMON

International Salt-

INTERNATIONAL

stockholders of record

BERGEN

Secretary.

August 24, 1959.

,

NEUMANN, Secretary

Con¬

Preferred

payable

tember

ness

PAUL B.

J.

the $25.00

on

vertible

*

R.

_

P.

v«lue5^£ percent

Cumulative

September 4, 1959.
A.

1959, a quarterly dividend of
43% cents per share on the Preferred Stock and
a dividend
of 40 cents per share.on the Com¬
Stock, were declared, payable October 1',
1959, to stockholders of record at the close of
business September 11, 1959.
,

share has been de¬

clared

Sep¬

business

,

Plaza, New York 20, N. Y.

26,

regular quarterly

per
on

stock

August

dividend of $0.34375

per

declared

1959, to stockholders of

the

ot

3, 1959.

on

cents

common

Corporation,

1959, to stockholders of record at
close

five

outstanding

tember 30,

ber

of

today been

clared, payable on September 24,

the

PREFERRED STOCK

99

A

Copper Cor¬

a

Rockefeller

mon

Richmond. Va.

,

NO.

21,/1959

August
At

Corporation

NOTICES

GEORGE W. HELME COMPANY
9

On

39

T14 E

Pace, Secretary

August 25, 1959

nearest

Midland

-

Trust

Company of New York has been appointed
agent for
handling such purchases and
sales, which will be made at the instruc¬
tion of, and for the account and record of,
such holders.
The

period

which

in

chases

may

vember

12,

be

such

made

will

sales

or

expire

pur¬

on

No¬

1959.

fractional-share interests
remaining
outstanding after November 12, 1959 will
Any

be

sold

to

the

and

the

holders

cash
of

proceeds

Atlas
33 Pine

Corporation

Street, New York 5, N. Y.

forwarded

fractional-share

Stock Dividend Declared

in-

fPfPQtQ

D. C. McGREW,

FLORIDA... MAGIC VACATI0NIAND
12 MONTHS
IN THI YEAR

the Common Stock

on

Secretary

Directors of Atlas Corporation
have declared a 5% dividend
on the outstanding Common
Stock payable in Common
on October 15, 1959 to
stockholders of record at the

Stock

close of business September

15,

19%
Stockholders
receiving
a
fractional share interest will
have until November 15,1959
to sell the
an

same

or

to

acquire

additional fractional share

interest

to

make

up

a

full

share.

Stockholders
time

NOTICE

DIVIDEND

may

at

any

prior to close of business

November 15, 1959 sell to the

FLORIDA POWER & LIGHT

Company
the stock

to 15 shares of
received as a divi¬

up

so

dend without

COMPANY

age

incurring broker¬
and similar selling expense.

MIAMI, FLORIDA

Walter G.

Clinchy,
Treasurer

A

quarterly dividend of 22c

share has been declared
mon

able

Stock of the

on

per

the Com¬

Company...

pay¬

September 22, to stockholders

of record at the close of business
on

August 25,1959

Atlas

Corporation

33 Pine Street, New

York 5, N. Y.

August 28,1959.

able

tember 30.

THRIVE
•

Regular quarterly of 25^

per

p. c. hale,

•

Payable September 15,1959

•

Record September 4,1959
Walter G. Clinchy,
Treasurer

August 25,1959
MIAMI

1. FLA

Treasurer
I

share

31OO.

to

from the Company?s
office in Los Angeles, Sep¬

FACTORIES AND FAMILIES

ROY

pay¬

mailed

President

"•USINISSLAND" WHERE

P. O

are

September 30, 1959,

stockholders of record Sep¬
tember 5. Checks will be

Robert H. File
FLORIDA... GROWING

The above dividends

August 20,19)9

The Commercial and Financial Chronicle
40

.

.

Thursday, August 27, 1955

.

(864)
\

huge sums of money. The
American Airways Inter¬

costs
Pan

Washington and You
behind-the-scenes interpretations

53 minutes is

hours and

eight
the

bigger

Agency

likely to take on more

appears

C.

D.

Congressman

Mississippi

liams

A

—

one

morning recently drove his new
red
Rambler to
Washington's

went home

But

Bell

here

of

brand

a

of

governor

hands

year

clined

hard¬

the

Mississippi

of

prac¬

are

tically unanimous that Mr. Wil¬
liams could have been elected

new

ropolitan Jackson, Miss.
afternoon

stay

can

tions

airport in growing Met¬

That

and

faith

lost

never

for a long time.
Leaders of various political fac¬

breaking ceremonies
marking the inauguration of a
construction

he

1946 and he has been
ever
since, and he prob¬

ably

ground

modern

and part

arm

an

Mississippi
this
down, but he de¬
the

make

to

He

race.

plenty of time in
to run for gov¬
Mississippi, should he

has

he

hitting Congressman limped up

says

improvised plat¬
form, along with other digni¬
taries, and made a talk. There,

the years ahead

the steps of an

in

decide

the

City,

Capital

Mississippi's

is

to

drove

Williams

lodge

a

on

ate bar¬
beef,, and
ears
of
corn
roasted in foil.
Then the ranking Democrat on
the House Interstate and For¬
and

chicken

in
the

than

first

nearly

come
There

consideration.

for

im¬

all

matters

aviation

portant

going to be many important
matters coming before this com¬
within

mittee

the

three

next

years.

air-minded citizens of the com¬
Need

munity, along with two officials
of the Federal Aviation Agency.

unusual
about Jackson breaking ground
for a new airport in an adjoin¬
There

nothing

was

ing county which the taxpayers
of the city will pay for primar¬
ily.

It

being

is

done

cities

by

for

Some

big things

The

new

cost

being built farther
away from the central cities to
■avoid congestion and the atten¬

it

airports

are

noise that marks

dant increased
the jet

Of

aircraft.

that

and

building

are

cities

other

one

the

and

Jackson

course,

hundred

getting

and

ready to expand facilities into
jet-age airports, are hot as for¬
tunate
as
metropolitan Wash¬
ington.
Congress has already
appropriated more than $90,000-

vast radar safety

a

United States.
astronomical,
absolutely necessary.
the

for

system
but

country. The

that took on a
only this year, has

blue-printed
The

the

over

will

is

be

addition

In

Agency,

agency

name

new

all

shaping
industry.

Aviation

Federal
old

an

are

aviation

the

for

up

Devices

Safety

air travel

the

to

growth, the speed of airplanes
is increasing all the time. The
commercial airplanes
are get¬
ting swifter and swifter. Within
five years one of the big avia¬
tion corporations will have an
airliner ready to fly from Los
Angeles to New York in about
an

hour.

It

sounds fantastic and

all

it

000 for the world's most modern

radar

international

safety sake. With planes flying

to

which

airport

called

be

John

the

is

Foster

International Airport

Dulles

honor of

in
distinguished

late

the

statesman

and

of

Secretary

State.

500

be

system
600

and

for

up

miles-

700

and

and

of

more

importance.?

plane flying 500 miles

mighty airport
being built outside of
the Virginia
"Blue R i d g e"
countryside
involving three
counties of the Old Dominion,

an

safety

purposes a

multi-laned

miles

this

which is

be

super

built

expressways

from

Washington
airport 17 miles away.

to the

miles

hour

A

hour,

an

that

for

speed of 1,000
coped

be

must

So

now.

that,

means

hour

an

with
comes

the

when

planes

fly

day

1,000

hour in opposite direc¬

an

tions, all the safety devices that
can

be

must

Many Airports Antiquated
Because

of

the

of

mustered

be

engineers

by

employed

prevent

to

crashes.

fantastic

air

travel,
many
are antiquated. That is
why some of the things said at
Jackson
by the Congressman
Federal

and

of

were

all

Aviation

over¬

national

Representative
Williams is

to

officials

importance in the
picture.

make

more

some

Bell

than qualified

pertinent

obser¬

vations when he starts speaking
about

air

travel,

airports,

and

airplanes.

air

he

Not

was

pilot.

Then

seas

in

bomber,

many

a

World

while

South

the

months
War

flying

America

"Ole

Miss

II

over¬

his

ahead

entire

domestic

both

will

nental,

bulk of

the

carry

passengers.

Representative Williams, who
an
airport named for him
in his home town of Raymond,
has

Miss., where his late father was
longtime druggist, has proved
to be one of the biggest friends

a

aviation has had in the Ameri¬

despite his

Congress

rible

experience

as

hor¬

World

a

War II flier.

[Th'.s column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.j

important

more

for

plans

nationwide

for

radar

its

HERE

earnings and dividends per

Price

,

Range

$6V2
6%

<■

8

1

6%

banker and Mr. G. Hugo Beckman,

1959—

71/4

of

course,
greatly accelerate the
installation of telephones through¬

5V4

63/8

Manager, has been asso¬

the

with

ciated

company

ever

since the 1950 merger.

of

As

r

investment

earnings and de¬
preciation funds to finance this
expansion, TELMEX obtained a
credit
of
US $4.8
million from
Besides

City.

Government investment bank.

raise sufficient funds in the Mex¬

ican

market, the Govern¬

money

ment

approved in 1953 a selffinancing
scheme
according to
which

every

is

scriber

TELMEX

telephone sub¬
buy securities in

new

to

US$240

about

for

in

common

securities
which is almost identical with the
amount sold in
1957.
Since the
from

000

the

of

sale

implementation
of this self-fi¬
nancing plan, TELMEX has been
able

raise

to

a

of

total

better

million.
The authorized capital is Pesos
590 million, divided into 5.9 mil¬

than

US $27

funded debt

the

legal

as

#23

Dividends

holders
the

City

As

tables

of

Dec.

31,

New
book

the

1958

approxi¬

share was
share.
shares

traded

are

in

listed

and

the

on

Mexico

enormous

demand for

telephones.
This demand is un¬
likely to be filled in the foresee¬
able future and may require addi¬
tional financing.
Since the ma¬

jority of the shares are now Mex¬
ican owned, nationalization of the
company
is extremely unlikely.
There
peso

seems

be little risk of a

to

devaluation

at

the

present

time.

~

political
in

Mexico's economic and
position is the soundest

Latin-America

ernment

York, over-the-counter

New

Im¬

excellent.

appear

an

is

and

the

Gov¬

friendly towards for-

capital. Industrialization is
advancing by giant strides and
will tend to reduce the country's

eigm

dependence
(at
present
yearly more than
million worth, of j goods
the United States).;
•'

import

City and Monterrey Stock Ex¬
changes.. They are available in
both bearer and registered form.

Mexico imports

The

from

registered stock is usually de¬

livered

in

carries

also

there is

no

the

tered

coupons

to

(which are
the bearer)

stock.

are

regis¬

currently selling

providing

$7%,
ioy2%.

The

rumors

a

in

TELMEX

stock

a

are

investment

An

it

since

premium in price
y8th of a point in favor

bearer

US $900

and

difference between the

shares

There

name

and

blank

except for

about

is

Mexican

payable

actually
two

a

in

endorsed

price

show

York,

New

at

per

TELMEX

at

below

tax

National

First

population of
increasing an¬

nually at the rate of about 3%,
the
growth possibilities of this

Today,

per

market

the

of

mately $10
the

Mexican

of

of

Bank
City.

value

payable to stock¬

are

free

offices

York

$933,613.

The

Coupon

5/2/1957

680

million,

provement in living standards has

#21
#22

US $43,350,000
stands at

reserve

Date

5/6/1958

of

The total

Amount V-

32

created

860

3,683,188

Mexican

a

company

Dividends

5/7/1958

of which 4.9 million are

(US$8)
issued.

100.

Pesos

730
840

720

of

of

Per Share

3,368,828

800

par

shares

Total

$2,739,636

1958—

at

stock and
part in 8% 15-year debentures. In
1958, TELMEX raised US $5,424,part

par,

some

(U. S. Dollars)

1957—

As

unable to

has been

Earnings

/ 1959„

Nacional Financiera, the Mexican

company

Net

1956—_

plants reached US $86,328,000, in¬
cluding the recently completed
12-story headquarters in Mexico

Republic.

With

.

31, 1958 the total
in buildings and

Dec.

out the

-

■:

York

U.

the

53/4

1958—

General

New

will be in an excel¬
position to raise capital in
S.. market,';which would,

lent

•

-

$11

the

in the not too distant
Should
this
materialize,

the company
Low

High

1955—

of

one

on

future.

^

President, is a well known

lina,

listed

exchanges

73/8

US

col¬

air

NEAT

THROW IT

1957-..

during flight

avoid

KEEP
OUR OFFICE

1956...

and

to

4

share for the past few years:

Continued from page 2

of Dec. 31, 1958 was

lisions. That is why the Federal
Aviation Agency is preparing to

19578

range,

The Security
Like Best

planes to travel at different air

yield

should, in my opinion, be
rewarding both for high return
and unusual growth potential.
The above information

tained

from

sources

liable, but is in no
Peso

figures

was

ob¬

believed

re¬

guaranteed.
translated into

way

were

U. S. funds at the official rate of

of exchange of P 12.50

per

dollar.

that TELMEX

endeavoring to have its shares

Brokers and Dealers:

Attention

TRADING MARKETS

mighty

network.

Botany Industries

Representative
Williams
ob¬
viously is one of the best in¬

Indian

Head Mills

Official Films

formed members of Congress of
the
hviation
industry and its

Southeastern Pub.

Serv,

was

killed.

perished.

John




Bell

Wil¬

making money and
bigger. There is only

are

getting
one

airline

ing

a

it is

a

that

subsidy

is

to

still

receiv¬

operating in the South.

with

the

20

new

are

capital

BROAD

SECURITIES
STREET

TEL: HANOVER 2-0050

faced

financial problems raising

for

the

equipment. Each plane

now

necessary

FOREIGN

,

Huge Capital Outlays

major airlines

Our New

Carl Marks & Co. Inc.

York telephone number is

CAnal 6-3840

and

operate,

small socalled feeder line

The
crew

Even the plane's mascot, a little

dog,

to

economists. The airlines,
and interconti¬

some

the

years

according

travel,

on

the

in

are

their

of

more

income

levels and stay at that elevation

Rebel"

crashed.
His

and

lines

receiving his law de¬
Mr. Williams became an

cadet.

later

spend

to

going

increased

HERE

people

more

problems. Nearly all of the air¬

After

gree,

Therefore, it is going to become
more

expedite

John

and

More

lion

growth
airports

THROW IT

of Agriculture.

partment

an

hour now, safety becomes more

miles

will

set

meeting another craft flying 500
reach

To

NEAT

Transportation, like the Depart¬
of Commerce or the De¬

ment

the

is. Thus, it is vital that a safety

KEEP

OUR OFFICE

are

gathering of civic and

a

per¬

friend

today

that

committee

eign Commerce Committee rose
in
the
rustic setting and ad¬
dressed

industry

No, 2 man on the House Inter¬
state
and
Foreign Commerce
Committee. It is under his sub¬

and

River

Pearl

the

becue

or

He

n

Perhaps someday

agency.

Congress will deem it necessary
establish a
Department of

to

can

better

no

office

elective

Representative

night

post

Senate.

States

aviation

has

haps

that

for

run

40 years old.

only
The

city of Jackson is going to build
a
jet-age airport.
That

to

United

the

12 miles
section of

downtown

the

from

of

ernor

abandoned field

an

eral

„

importance as a Fed¬

and more

in

gress

principal speech-makers

the

of
at

lost

He was hospitalized
long, long time.

a

to be one

John

Representative

young

leg.

a

determination. He came to Con¬

to make a

Williams

a
He

of

for

biggest city in his district
couple of talks.

the

badly mangled

man.

for

plane

non-stop

a

and

Airport

National

busy

boarded

plane,

clear of the

thrown

was

craft.

international

The Federal Aviation

WASHINGTON,

faster

still

of

forerunner

and

capital

from the nation's

business buzz

that recently
made a flight from New York's
Idlewild
Field
to
Moscow in
plane

continental

•

SPECIALISTS

LERNER S CO.

NEW YORK 5, N. Y.

TELETYPE NY

1-971

Investment Securities

10 Post Office

r~r
Via a

II r

iriri ■

rrrfriViyr^

Square, Boston 9, Mass,

Telephone

Teletype

HUbbard 2-1990

»S 69