Full text of Commercial and Financial Chronicle : August 4, 1960, Vol. 192, No. 5974

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'he

COMMERCIAL and FINANCIAL

\sTABLJSHED 1839

Number 5974

192

Volume

nd

New York 7, N. Y.,

AS WE SEE IT

»„•„/
oth

Reg. U. S. Pat. Offic4

No

influential members of both,

are quite obsessed
must accelerate growth
"the economy." The Democrats, to achieve that policy,

notion that somehow

ith the
in

we

Investors

and

It

counselor

of

to

his

own

terested

both parties

The

the

ask them

just what "the economy" is, and what constitutes growth
in it. Yet, it seems plain enough to us that such questions

politicians

are

experience.

the

in

"beating the market."

off

the

the

on

in

disturbance

the

market"

As

has

would

Thursday,

nounced.

currently used, the term "the economy" appears to
connote the whole complex of activities and assets by
which the
people of the country supply their needs. It
is all but universal to
regard what is known as Gross
National Product as an acceptable measure of "the econ¬
omy," and to accept increase in this figure as a measure
of growth of "the
economy." There are some who would
relate this
figure to population growth, to get a measure
of the
growth of "the economy," but these seem to be
in the
minority. But is this concept of "the economy"
and its
growth adequate and ac(Continued on page 20)

to

an

so

July

weak for

quite

was

stocks

the

the

Oils,

my

view.

known

was

road

sure

to

U. S.

afforded

a

Housing,

the

$250.
is

54

a

on

that

every

now

and

then

it

one of

is

not

the many, many
so

easy

"jokers" in this

for the average

man

to

his

unhappy ventures still smarting, he is all too likely
sell out his stock that he bought for $16 when
$25, feeling that he has done a good
job with his capital and that now he will go look¬
ing for another good stock
(Continued on page 20)
it has reached

rush of

Lester, Ryons
623 So.

State,

Municipal

NEW YORK

the Government In:

KENYA,

INDIA,

PAKISTAN,

Members

Offices

BURMA,

TANGANYIKA, ZANZIBAR,
SOMALIA,
NORTHERN AND SOUTHERN

in

Riverside, San Diego, Santa Aaa,
Santa Monica, Whittier

THE FIRST NATIONAL CITY BANK
OF NEW YORK

Inquiries Invited

30 Broad Street
•

on

Bond Dept.

Teletype: NY 1-708

New York

Correspondent

—•

A

,

Net Active
To Dealers,

e

UNDERWRITE!^
ESTABLISHED 1832

dealer

New

York Stock

American

Exchange

Block Inquiriee

25

STREET

BROAD

NEW YORK

it N. Y.

BRIDGEPORT

•

PERTH AMBOY'

Department
THE

Chase Manhattan
HAnover 2-6000

MUNICIPAL.

FOR

to
buy the above rights
expire on September 16^

CALIFORNIA'S

Private

Wires

CIVIC

to

Torvntet
Montreal, Winnipeg, Calgary,
Vancouver, Victoria and

IMPROVEMENT

Halifax

CANADIAN DEPARTMENT

MUNICIPAL BOND

Teletype NY 1-2270

DIRECT WIRES TO

2 BROADWAY
NEW YORK

Dominion Securities

MONTREAL AND TORONTO

Goodbody &

BONDS

1960 at the current market.

Direct

Invited

Grporatich*

Co.

MEMBERS NEW YORK STOCK EXCHANGE

DALLAS

offer

which

Canadian Exchanges

Stock Exchange

Bond

Rights
We

Commission Orders Executed On All

:

^outfuvedt

The Bank of Nova Scotia

canadian
securities

T. L. WATSON &. CO.
Members

Markets Maintained
Banks and Brokers

Notes

BANK

Pershing A Os.

RHODESIA

•'•'.

Agency

Southern

California Securities

UGANDA, ADEN,

Housing
Bonds and

Exchange
Exchange
Pacific Coast Exchange

Claremont, Corona diet Mar,
Encino, Glendale, Hollywood, Long Beech,
Oceanside, Pasadena, Pomona, Redlaads,

ADEN,

In:

CEYLON,

Hope Street, Los Angelee IT,

Members New York Stock

KENYA,

BOND DEPARTMENT

Co.

Associate Member American Stock

UGANDA, ZANZIBAR
Branches

TRUST COMPANY

&

California

JAMES'S SQUARE, S.W.I.

Bankers to




fact

does buy "XYZ" at $16, and
his hands and watches it advance to

complete picture of issues now registered with the SEC and poten¬
Registration" Section, starting on page 28.

PARLIAMENT STREET, S.W.I.

13 ST.

CHEMICAL BANK

company

man

to

small-time speculators trying to make Two Million

BISHOPSGATE, LONDON, *.C.8.

HAnover 2-3700

first

means

the

hands complacently while his stock is
making money for him. With the wounds of past

Tex¬

It had all the look of

on

But

that

sit

John Magee

London Branches

distributor

no

for

Since the widows

people this just ain't possible is

demonstrable

then sits

Head Office:

******

fortune

somebody actually

BANK LIMITED
26,

i

and

One of the things that makes it so hard to real¬

NATIONAL AND GRINDLAYS

Municipal

New York 15

a

.and Public

Securities
telephone:

fame

ize that for most

Government,

Public

not

was

level.

tial undertakings in our "Securities in

State and

Edwards

orphans, backed up by the SEC and the rules of
exchanges, are pretty well able to hit back
these days, the question of Easy Money pertains
mostly to buying something Real Good when it is
Real Cheap, and then cashing in at a much higher

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
are

better.

short, and his experience with the
long and broad. He knew just exactly

and

tiles, big Motors, Rails, etc. I have felt this was a
weak
market generally; and the rally
did not
change

say

the big

and

as

those

who prefers loafing to working.

dangerously
long time for most

such

years

swindling the speculative market is by

changes

pro¬

analysis of the
thin, erratic rallies of Thurs¬
day and Friday point much
more to
a rushing in
of tyros
looking for Easy Money than
to
any
basic change in the
trends of important groups of
stocks;

of

my

during the

loot

looking
a

friend

Leaving out "dishonest" money, that is to say,
that might be extracted from widows and
orphans or from the general public by out-and-out

28,

Actually, the market

been

Edwards,

have

market

"orderly

be

substantial;

to be sold

man

sparked by

margin requirements,

not

more

pious platitudes that people
in the interests of conformity
the verbal mores of our culture.
Actually, I

should

in¬

changes would be made; so that

not

a

whereof he spoke.

the following day, apparently

reduction

When

way.

mind.

our

Bob

one

as

to

Mr. Magee explains

long pull.

market

easy

expected to

are

passing

"principles" leading to the right direction

in

rally
on

interested in the answers, then the voter would be well
advised to take the matter under careful consideration.

securities

Copy

a

teacher, partner, and
when we were
probing into the mysteries of the market together
and
writing our book, "Technical Analysis of
Stock Trends," told me that "there is no Easy
Money in Wall Street" I was inclined to pass this

of the

a

change

intimate

observer

Some

the

When

blunt criticism of their

a

typical of these unannounced "surprise"
in margins. Some day we may
have a policy by which it is
possible to state in advance the
conditions under which margin

set themselves to do. Most of the leaders in both of them

need to be asked and answered. If the

know

method and opines that the serious investor is

over

and

someone

should

important to know; (2) the folly of pursuit

mark instead of

however, that neither of them has

doubtless would be astounded to have

who

ability of dealing with probabilities and of seeking

paused to give serious consideration to what they are
talking about or to what is involved in what they now

us,

subjected to

those

lucky-breaks, and of going "all-out"; and (3) the prefer-

members of the faster growth school.

seems

and

considerable

of

to learn what is

quite consistent with the previously mentioned
any event,

Cents

type of buying appears we will be ready and glad

topics discussed revolve around: (1) the hard work it takes

rotestations and promises of the Republican party seem

are now

novices,

are

investment motives, methods and principles by an

hought, so we may hope, that the matter of continued
jowth in "the economy" will then come naturally and
soundly. However, it must be said that not all of the

[general political philosophy. In

who

better but don't, are

take their platform at its face value—and more
inclined to lean upon policies designed to create a faorable atmosphere in which business operates in the
may

be

Dollars
to

'are, fortunately, less given tq this sort of nonsense—if

o

50

Easy Money in the Market

By John Magee, Stock Advisory and Commodity
Management Services, Springfield, Mass.

luntly state that they would start promptly to tinker
and the banking system. Their opponents

7ith credit

one

Price

Novices Have Yet to Learn There's

political parties have now held their conventions
have left no doubt in anyone's mind that both, or

t least

Thursday, August 4, 1960

Associate Member American Stash

Emtnmtn

,

1 NORTH LA SALLE ST.
CHICAGO

40

Exchange Place, Hew Teik S, H. f.

Tel. WHitehall 4-81 SI

Tale. KYI-M*

DEPARTMENT

BANK OF AMERICA
N.T.&S.A.
SAN FRANCISCO

•

LOS ANGELES

2

The Commercial and Financial Chronicle

(454)

.

...

Thursday, August 4, I960

——■.

Dealers only

For Banks, Brokers,

If it's Over-the-Counter

.

The Security
in the investment and advisory

Traders Say

Forum

week, a different group of experts

A continuous forum in which, each

.

.

I Like Best..

This

Alabama &

Participants and
Selections

Their

-

field from all sections of the country

Louisiana

particular security.

participate and give their reasons for favoring a

Securities

Cadre Industries Corp.—H. Ronald

Call "HANSEATIC"

Brown, Research Dept., Stillman,
transceiver for marine, industrial,
Maynard & Co., New York City.
and
commercial use will
begin
(Page 2)
Sept. 1, and 7 or 8 new electron¬
ics products are expected to be Housing
and
Revenue
Bonds-

H. RONALD BROWN
For the combined advantages

markets in

1. Primary

of:

than

more

400 unlisted securities.

Stillman, Maynard &

Research Dept.,

Co., Neiv York City

York Stock Exchange

New

Members

Cadre Industries
2. 40 years

0-T-C experience.

3. Nationwide
4.

Broader

private wire system.

well

not

erates

dependable executions.

New York Hanseatic

boat trailer fields. In

Established

120

•

•

CHICAGO

SAN FRANCISCO

Nationwide Private

Wire System

about

Brown

Ronald

H.

the com¬

ucts that will be introduced in cal¬

for

endar 1960 and 8 more in the pro¬

selling

uation for

1954

Cadre

around

the

110,

attractive sit¬
long-term capital gains.
a

very

started in

was

and,

1950

through the energetic work of its

experienced

has

founders,

growth.

pected to result in

ex¬

Management

million for the year ended

June

Industries

Cadre

vision

—

—

in business
radar

one-half

accounts

the

of

small

electronics

Research,

numer¬

Cus¬

fident

continue

INTERESTED IN'CANADA'S

EXPANDING ECONOMY?
Canada, the world's second Iarghas

nation,

est

Its

resources.

lation

industry and

Thomson

Inc., through

a

Com¬

network of

offices in Canada, the U. S., and

Europe, is in

touch with

constant

all types of Canadian investment

possibilities

—

corporate

and stocks.

Nesbitt,
pany is

in

their

and

will

bonds

|and
to

Com¬

help in¬

corporate investors

Canadian

transactions,

be equally glad to fur-

nish any information about Cana¬

dian

investment.

NESBITT, THOMSON
AND

because

of

ness,

its

COMPANY, INC.

25 BROAD ST. 140
FEDERAL ST.
NEW YORK 4
BOSTON 10




to

is

the

14

—

profit.

increase

of

A

with

the

the

most

impressive
organi¬
manage¬

and is headed
President

No

employes

in

the

last

fiscal

year.

Basic

Sales

Net

Profit

(00ft>

Income

Margin

14

per

18,355

16.5%

26,598

13.7

0.31

891

104,928

26.4

1.31

1,540

78.560

10.0

1.04

2.374

71.561
415,276
562,738
440,571
550-600,000

6.4

0.75

17.5

3.36

17.9

4.18

stock

splits

and

stock

(I deficit.

(This is under
a

In

no

circumstances
an

offer

to

to

a

$0.22

12.0

3.16

3.50-4.00

dividends.

be construed

buy,

any

it

because

selecting

was

paid

of

somewhat

of

the

the

Bankers

N. Y. 6 COrtlandt 7-5680

New York

offer

security referred

to

to

sell,

or

herein.)

Airways

LEWIS & STOEHR INC.
80 Broad

Street, New York, 5

Telephone DIgby 4-0985
Teletype NY 1-2978

A

Continuing Interest in

Fischer & Porter Inc.
Richardson Co.

Stouffer Corp.

a

Keyes Fibre Co.

favorite security in

first

BOENNING & CO.

would

group
be the

very

high

1914

fi Established

1529 Walnut

The

name.

115 Broadway
New York 6, N.

CO 7-1200

,

Street

Philadelphia 2, Pa.
Y.
LO 8-0900
ATT Teletype PH 30

grade New

Housing
Au thor i t y
bonds issued

by

many

cities

under

the U.S.Hous¬

ing Act.
second

The

group¬

ing would in¬

Robt.
/

N.

clude higher
yielding
bonds, usually

Tuller

a

nV

*«$4ViNG^

revenue

•

bonds, which

some

tion

at

of

size

of

time

special condi¬

issuance

such

as

issue, threat of litigation,
market condition, contributed to
a; high coupon and high
yield. In
the past some examples would be
Chelan
Public
Utility
District,
5's, Birmingham Industrial Water
Revenue 4.90's, Tacoma Light and
Power 4y2's, Puerto Rico Water

Over-the-Counter

Quotation Services
for 47 Years

Resources 43/4's and Tucson Water
Revenue 41/2's. Regardless of mar¬
ket

changes, most of these issues
never

sold

below their issue

price. The two current issues de¬

an

Black Clawson Co.

rela¬

company.

specific

County,
as

Investment

near

tax-exempt field, I would
choose to select two
groupings of
bonds rather than
one

serving

solicitation of

earnings

consider

the

have
all

&

111 Broadway,

ROBERT N. TULLER

re-

share

$ d 965

•

Tokyo,Japan
Brokers

needed for expan¬
is primarily rec¬

are

♦Earned

171

J

Affiliate of

Partner, Tuller & Zucker, N. Y. City

,

339

for

are

stock

Wayne

1952____.

«s

by

Pretax

11,500

The

The company spent about
$250,000 for research and
development

Net

1960 Est..

funds

sion.

tively small size

Cadre

Operating Record

6,497
7,748

cause

speculative

correspond¬

excellent

young,

old

Company

York, Inc.

Yamaichi Securities Co., Ltd,

keep the cash payout low be¬

large

very

The top management group

very

of New

Housing and Revenue Bonds

entire

its

is

Yamaichi

Securities

capitalization, and I

a very

1953__.

♦Adjusted

write

Management intends

nia.

expects

5,058

$3.16

500 year-end extra

represented by unions, including
those in highly unionized Califor-

to place on the market in the next
several years. Production of a new

1958_

to

women's

and

a

last October.

This company was

year.

stockholders.

tronics products in varibus
stages
of development which it

1957

of

Ac¬

employes own 20% of
the outstanding common stock and
the
majority of employes
are

products. It
different new elec¬

1956.

with

Cadre's

growth from

$

year

large personal stake in the busi¬
ness, owning almost 50% of the
outstanding common stock.

subcontracting busi¬

1951

current

Cawley, one of the company's
founders. Management also has a

proprietary

has

Corp.

men's

nice

42-year

lower cost. Sales of

expects

both

a

ment.

1960,

Cadre

own

now

at

zation

similar increase in profits.

a

and

quarterly rate and the equivalent

Probably

con¬

able

June 30

Thomson

or

be

Year Ended

<

always ready

stitutional

and

government

municipal issues,

with

information

or

$6.00

the current year.

this division advanced about 60%
in the year ended June 30,
Besides the

and

will

work

a

Call

hopes
that
$14 million in the

sales will reach

ingly higher profits is expected in

growth of all types of
electronic products. As a subcon¬
tractor it catt turn out better qual¬

popu¬

constantly expanding.

are

Nesbitt,
pany,

untapped

vast

it

million

wouuld

sales

expected

ity items at

current

Management

profit last

it

expansion of this subcon¬

tracting

STOCKS
For

apply

ommended for individuals because
of the small

part

that

JAPANESE

public,

eventually

and makes milk cases
and crates. Montrose lost
money
in fiscal 1959, but probably made a

Curtiss-

management feels

$7.7

share.

low price and,
after it is on a more profitable
basis, management expects to sell

Wright.

Cadre's

were

from

expected increase in
(3) a continuing de¬

Hanger

purchased at

components

and

(boat

years

8,000
186,000 units last

to

garments,

company's

nature.

for

ers

for

tomers
include IBM,
RCA, GE,
Lockheed, Stromberg-Carlson,
Sperry Rand, Western Electric,
Stanford

branch offices

our

expects

quired in 1958, this company pro¬
duces high quality wooden hang¬

include

sub-assembly

an

Montrose

computer
panels, accounting machine relay

a

to

Sales in the year ended June 30,

exceptional

program.

electronics output. Other electron¬

gates, test equipment, and

to

a share. The present goal for
velopment of new products, and sales volume is $50 million in 1965.
(4) a more efficient marketing Dividends are being paid at a 150

missile
guidance
etc.
The cable
and

products

Birmingham, Ala

1960

recent

leisure time,

communications

business

an

increased

1949

year), (2)

computers,

systems, PBX

harness

Di¬

half

cables and wiring

and

equipment,
equipment,

over

in
sales

units in

this division special¬

izes in making

harnesses used mainly

machines

trailer

include:

Eastern

Accounting for

of total sales,

about

boating

1960. Its most important

30,

divisions and subsidiaries

intends

were probably close to
$11 %
continued million,
with
earnings
around
growth in this field because of (1) $3.50-$4.00 a share—the compar¬
the much greater popularity
of able figures for the prior year

Sales

taled

$liy2

and

in fiscal 1961.

year

to¬
$171,387 in fiscal 1952; $2,373,647 in 1956; and an estimated
rapid

tremely

Exchange
6, N. Y.

Mobile, Ala.
Direct wires

last

listing on the New York Stock
Exchange. In order to qualify for
posal stage.
listing, a large; increase in the
Bad weather and non-recurring presently outstanding 157,434'
shares will be needed, so stock
expenses probably resulted in
a
and
dividends
are
loss for Mastercraft last year, but splits
quite
likely in the future.
a number of developments are ex¬

Over-the-

the

in

Market

offers

stock

ous

financing

growing well into the future.

Counter

of

stock

shares in the hands of the

Now

ics

Common

special emphasis upon the smaller
cars. Mastercraft has 8 new prod¬

factors

counted upon to keep

pany

the slack of lower sales of ex¬
isting products, and thereby main¬
tain a steady rate of growth.

Since

sales.

Exchange

Stock

NY 1-1557

New Orleans, La. -

up

acquisition of Mastercraft December should take care of
a
number of new products have capital requirements for the next
been
added,
of
principally
utility couple
years.
Management
trailers for automotive use, with wants to increase the number of

business.
These
are

in recession years in order to take

contributes

total

of

20%

it

—

American

Cadre's

in the

stake

has

market

tional

''Members New York Stock

HAnover 2-0700

iary produces boat carrying trail¬
ers, and has about 15% of the na¬

ag¬

and
very capable
management
group with a
large personal

Steiner, Rouse & Co
19 Rector St., New York

quired early in 1959, this subsid¬

(2)

and

young,

a

Teletype NY 1-40

BOSTON

growth of

gressive,

Broadway, New York 5

PHILADELPHIA

rapid rate beof (1)

Bought—Sold—Quoted

Members

recently occupied a search is sent out to independent
new plant at Los Gatos, California
engineering and research agencies,
—heavy start-up costs have held and the company maintains its
down profits in this plant,, but the own continuing program of new
outlook for the present fiscal year product development.
It is man¬
is very good.
agement's policy to concentrate
the
introduction
of
new
products
Mastercraft Trailers, Inc. — Ac¬
division

10

c a u s e

tries,

1920

Stock Exchange

WOrth 4-2300

ex¬

Tuller, Partner, Tuller

Zucker, New York City. (Page,

2)

products and services as the
Eastern
Division, this unit ac¬
counts for about 10% of sales. The

these indus¬

Associate Member
American

&

Producing essentially the

—

N.

Robert

Western Di¬

—

same

investors, op¬

years, it has
expanded
a t
a n
extremely

the

Corporation

vision

small company

to

known

istence only

5. Fast,

Cadre Industries

principally in the electron¬

ics and

Coverage.

ready by December.

Corp.

Cadre Industries, a

^

Week's

this

Florida

4.70's and
U

category

Florida

are

Port

Authority

State

Continued

Develop-

on

National Quotation Bureau
Incorporated

Dade

page

15

Established 1913

46 Front Street
CHICAGO

HewVerK 4, H-*H
SAN

FRANOIBO0]

Number 5974

Volume 192

.

.

The Commercial

.

and Financial
Chronicle

Cautious Approach
To"

A

ullCHTMII]

Dodsie &

AND

Co., New York City

Articles and News

companies in electronics, according to Wall
Street analyst, are apt to share proportionately the assured growth
of the industry. In deliverying his candid appraisal of what is likely
to succeed, Mr. Ferguson identifies by name many firms and their
all segments

Hot

or

Novices Have

electronics industry is the
growing segment of our
pconomy.
It has just completed
a
decade of growth in which

is

and

in

the

will

prob¬

ably

unparal¬

leled

in mod¬

be

of the

fifth

industry,

outcome

elections.

the
largest
is

tronics

incidentally,

missiles
for

John Ferguson, Jr.

em¬

of

the

Continued

will

research

tion leads to

regardless
November

transition

and

destined
to
become
one industry
of the

number

the

men

have

na¬

that

time.

explora¬

is

by

dollar

solving

business

has

political,

and scientific

casting

leaders

doubling

a

seven

years.

But

while

the

seems

ments

or

assured, not all seg¬
companies will share

consists

panies

of

of

hundreds

4,000
size

some

ranging

thousands

in

dollars

of

in

com¬

in

garage

readily
of

classifying
products
gories.

the
into

made

multitude

into

for military elec¬
undoubtedly continue
to be a large and growing one,
but it is well to remember that
it is subject to the same hazards

tronics will

marketing

that affect

changes in defense concepts,
periodic
economy
moves,
re¬
negotiation and the vagaries of

largest single sales outlet for

industry

since the early 1950's

military

stepped

rip

procurement

during

the

aircraft manufacturing,

i. e.,

been

has

military procurement in
A classic example Of this

was

Korean

general.
occurred

1957 when a
i
u
"^is area now accounts for complete reappraisal of the de¬
naif
of
industry's sales, having fense effort was made, resulting
increased tenfold in 10 years to
in a ceiling on spending and the

this

year's

With

estimated

$5

in

the

summer

cancellation

billion.

only moderate increases

*

.

Outmoded

Tax

More

Than

Half

of

the

Nation's

of

stretch-out

or

Continued on page

in

Spencer Trask & Co.
Members New York Stock

Could

Be

Counties

Lost

National

•

*j'v.v'

'* -t,

r"'''

A25

Bureau

(Boxed)

of

Economic

25
Research

Publishes

Book

-'.

■

•'

.

■.

'

25

39

Broadway, New York 5
DIgby 4-4970

27

'

■

J.F.ReiIIy&Co.,Inc.

on
_

' -

,

•

High Capital Spending Projected for Gas Industry____ 27

Foreign Dollar Bondholders Fared Better in 1959 Than in 1958 38

Servonics

Tally Industries

Regular Features

Amer. Int'l
As We See It
Bank

(Editorial).

Insurance

and

Cover

Stocks..

Western Publishing*
Metro.

Businessman's

Bookshelf

39

Broadcasting

*Prospeclus

Coming Events in the Investment Field
Dealer-Broker

Investment

Bowling

15

Recommendations

Einzig: "Why the Spreading Gloom

on

on

request

40

Singer, Bean

8

London

Stock

Exchange"

&

9

Indications of Current Business Activity..

26

Mutual

14

Funds

mackie,

inc.

40 Exchange Place, N. Y.

HA 2-9000

Teletype NY 1-1825 & 1-4844
Direct JVires to

News About Banks and Bankers

12

...

Chicago
Wilfred

May

4

Our Reporter on Governments....

21

Public

11

Securities—

Utility

Securities Now

Security

Prospective
Security

in Registration

Cleveland

Los Angeles

Dallas

Philadelphia

San Francisco

St. Louis

28

Offerings

36

Salesman's Corner..

The Market

.

.

and

.

You—By Wallace Streete

4, N. Y.

Chicago

Schenectady

Glens

Fall*

Worcester

16

The Security I Like Best

2

The State of Trade and

4

Industry

Tax-Exempt Bond Market—Donald D. Mackey.

Washington and

Coastal States Gas

19

Friendly Frost, Inc.*
Cormac Chemical

Corp.

6

You

Cormac

40

oi
18

Photocopy

BarChris Construction*
Twice Weekly

Copyright I960 by William B. Dana

FINANCIAL

CHRONICLE

Company
Reentered
ary

Reg. U. 8. Patent Office

25,

SEIBERT, President

records,
state

Thursday (general news and ad¬
issue) and every Monday (com¬

statistical
and

Other
nhicauo

issue

corporation
city news,

Office:
3.

HI.

—

market

news,

post

*Prospectus
matter

office

on

request

Febru¬

at

New

Subscription Rates
Subscriptions

GEORGE J. MORRISSEY, Editor

plete

the

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

CLAUDE D. SEIBERT, Publisher

vertising

at

Publishers

Park Place, New York 7, N. Y.

WILLIAM DANA

second-class

as

1942,

in United States, U.
Territories
and
Members

Possessions,

Pan-American

Union,

Doa.inion

Canada,

Other

of

quotation

bank clearings,

etc.)

135 South La Salle St.,
(Telephone STate 2-0613).

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per

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year;

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of

In

year;

INCORPORATED

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$45.00

and

per

rate

foreign

Quotation

year.

Note—On

the

W» V. FRANKEL & CO.

Countries, $72.00 per year.

Thursday, August 4, 1960

TELETYPE NY 1-5

HAnover 2-4300




'

21

Anticipations Data

Exchange

ST., NEW YORK

Newark

•••';>

IONICS, INC.

Population,

Better

Worthy of Support!

Every

Nashville

■J- '!

Purchasing Agents Say Business Is Not Bad, Though It

Founded 1868

Boston

SPORTS ARENA
17

Ccmmerce___

of

Rfictor 2-9570 to 9576

Albany

ACOUSTICA

16

Reports U. S. Department

25

TELEPHONE

13

Laws Imperil Creation of I Jobs, According to

WILLIAM B. DANA COMPANY,

25 BROAD

BAIRD-ATOMIC, INC.

ASSOCIATES

American Economic Foundation Survey

PREFERRED STOCKS

have specialized in

12

tjf

5j5

The COMMERCIAL and

many years we

Overseas?

(Letter to Editor)

Published

For

Business

C. II. Haines Urges Change in Depreciation
Accounting

market

The

cate¬

of
military, consumer and
industrial products, and the re¬
placement parts therefore.

Electronics

S.

Aircraft

areas

Military

*1*

Observations—A.

What Happened to

Recalls

breakdown

the

to

military program.

—one

end

of

little

neat

try

electronics

military

difficulty

broad

a

might

into other markets as
a means of lessening their depen¬
dence on one customer, or worse

partly
in

available

the

But

be

when

in

diversify

tronic systems. Industry statistics
not

U.

nur¬

production contracts or
application in commercial
markets. Those engaged primarily

ducing multi-million dollar elec¬

because

of

have

to

millions,

or

Heel

—Roger W. Babson

to

lead

from

sales

Achilles
Allen

military

on

which

research)

nanced

and from
operations
turning out nickel components to
multi-plant
organizations
pro¬
basement

tne

weaned

born,

of
gaining
experience and knowindustries
in a heterogeneous bundle. how (through government-fi¬

many

me

companies

were

increase it as a means

try to

a

E.

of

and many non-electronic
companies participate in military
electronics
in
varying
degrees.
Those with a small participation

it. The elec¬
composite of
all lumped to¬

gether

can

as

company

growth of elec¬

proportionately in
tronics industry is

are

fountainhead

4,000

4-6551

BOWLING

entire industry. The

today

and

tured

perhaps

in

a

the

of

existence

fore¬

are

involved,

electronics. And every electronics

tronics

It

bulk

and

conservative

be

to

appears

several industry

even

of military problems

created

Dept.

Maine Requires Courage and Gumption of
Advertising

billion by

transcends

amounts

ideas for the

this estimate

areas,

Opinion:

—Charles

Record

the

Securities

STREET, NEW YORK

AMERICAN INTL.

10

its
the

in

7

Federally-Chartered Mutual Savings Banks Proposed

significance

WALL

Telephone: WHitehall

Williams

military electronics has
dominated the industry since 1952,

projecting a level of $20 billion
1970. Based upon recent de¬

velopments

$10

over

While

sales are expected
to reach
$10.4 billion and the
Electronic Industries Association
tion. This year

Public

the belief that mili¬

it

at
us
down to

sat

5

—Guenther Reimann

to

ploying about
thr^e-quarters of a million people, tary electronics will reach the
of whom 100,000 are engineers or E. I. A. projection of $8.6 billion
one-fifth of the nation's total. It by 1970. Some industry spokes¬
seems

Obsolete

con¬

plus larger expenditures

space

we

bid !

3

;

Cobleigh

—Paul IT.

spending

a

true,

laughed

when

Electronics Industry

as

collapse of
conference, it now
and

STORY
•—They

Cover
'AAA:':

I

rL

the

increased

at

SPLIT SIDE

in the

Coping With Unstable International Currencies

missiles

high level for an in¬
definite perioct of time. This will

Elec¬

history.

about

twice

defense

Money

COMPANY

Consumer Credit Industry Faces Serious Problems

communication

With

that

be

tinue

American

ern

speed

summit

appears

is

This

high

networks.

$9.2
billion last
feat

into

about

Easy

!

-

Ferguson, Jr

—Ira U.

electronic gear as aircraft),
into early warning systems

and

to

year.

channeled

No

International Silver Co.'s New Pattern in Earning Power

military have

require

There's

99

much

from

1950

being

(which

products in¬
creased
3V2
$2.6 billion

—John

doubled.

sales
electronic

times

the

Learn

T

This is because a
larger
proportion of each defense dollar

factory

of

to

ment

to

A Cautious Approach to the

defense budgets over the
past five
years,
sales of electronic equip¬

The

Yet

Page

Market—John Magee

products in his analysis of developments in electronics and of the
suppliers of components. Cognizance is taken of the market action
and price earnings ratio of electronic issues by Mr. Ferguson in
recommending a good representation of them in every institutional
and individual portfolio selected, however, on a cautious basis.

fastest

3

CONTENTS

Jr.,* Research Department, Clark,

John Ferguson,

IU

a

(455)

Record

(Foreign

account of the

39 BROADWAY, NEW YORK 6
—

Monthly,

Postage

extra).

fluctuations

of

In

exchange,
remittances
for
subscriptions and advertisements

must be made in

•\

New York funds.

J

<

WHitehall

Teletype NY

3-6633

1-4040 &

1-3540

4

The Commercial and Financial Chronicle

(456)

Steel Production

Carloadings

upturn in steel op¬
erations are beginning to show.
At the same time, there are indi¬
cations that the fall upturn may

leading to

food Price Index
Auto Production
Business Failures

TRADE and INDUSTRY
Business

are planning to
their spending for new
plant and equipment in the sec¬

step

concerns

up

half of

ond

1960, but at

slower

a

Commodity Price Index

further advance

some

The third

chiefly in 1955

as

1951-53.

period,

to physical vol¬

Number four

ume.

in

the 1955-57

was

is

the current

rate than in the first

half, accord¬ rise which began with the fqurth
to the Cleveland Trust Co/s quarter of 1958. This one does not
Business Bulletin.
This is indi¬ compare very well with 1946-48,
cated by the Government's latest which was a catching-up boom for
quarterly survey, released in June civilian output; nor with 1950-53,
and based on plans reported by which included the Korean War.
business concerns in late April It is more nearly comparable with
and
May. Outlays for the year 1955-57.
1960 are now projected at $36,850
"(2)
In
general
the
four
million, or a little under the upswings correspond with those of
$37,016 million estimated last total
business
activity,
though
ing

March. The 1959 total

$32,540

was

million.

turning-points in the former tend
to lag behind those of the latter.

be

not

an

strong

as

are coming out
they entered two
months
ago,
the
metalworking
magazine notes. For the first time
since 1958 incoming business just
about matches steel output. And

Incoming orders
the

slump

within

the

few

next

BY A.

expected

as

earlier,
according to The Iron
Age, the national metalworking
weekly.
However, everything now points
to the hoped for turnaround in
operations.
of

weeks

the

MANY

TOO

INFLATION-

CHICAGO—As

steel

delivery

August

have shown

little

no

or

of

im¬

July. Before this,
allowed steel mills to

provement

over

last

our

1959

IV

Qu.

$33.6

I

Qu.

35.2

II

Qu.

37.0

estimated

III

Qu.
Qu.

37.5

estimated

IV

Year

(37.8)*

1960

'Derived

36.9

estimated

figures.

In the past, these capital ex¬
penditures have increased in good

times and

declined

—-both in

in poor times

amount and in relation

to the total dollar volume of busi¬

measured

ness as

by

national

gross

product.
The

Bulletin

cussion

"In

continues

its

dis¬

outlays

by

follows:

as

1929

business

capital

concerns

10.5%

were

of gross national product. By 1933
the ratio was down to 4.6%, this
decline being a

factor in the de¬

pression of the early 1930s. Fol¬
lowing a recovery, the ratio again
slumped in the short but sharp
depression of 1937-38. The World
War II
cause

tary production

for mili¬

financed

was

Government's

Defense

by

Plant

Corporation.
"The
nessed

sion

postwar
a

period

But

Bank Clearings for Week Ended

July

year

chief

with replacement of
inefficient productive
Small declines in the

facilities.

in

one

that

ratio is at
not

as

of

a

high

1958.

The

current

as

it

inflation

reveals several

been

eliminated—

to

the

year.

10.0%

corresponding

Our

at

obtain

and

October.
In
effect,
borrowing from future

are

Consequently, there is
belief

that

the

a

October

"odd-lot"

Nixonese
sive

billions

entailed

(as

measures

pro-Benson

"Rights

of

the

$23,810,656,539

ended

July
New

Yet, it

that the bottom

appears

steel

has

been

reached,

The

Age says.
While there will
not be a sharp increase in steel
output until after Labor Day, sea¬
sonal factors

usually begin work¬
ing in the first week in Septem¬

ber.

They will this

Some
users

30—

York__

1960

industry

are

year.

be

farm

$13,910,502

$12,279,137

1,212,525

steel

sources say

liquidating

inventories

4.8

will be down to the
level reached at the start of
1959,
and only a little above the level

1,273,133

3.2

at the start of this
year.

%
+ 13.3
—

1,013,000

982,000

4-

772,151

699,366

+10.4

Boston

Even

so,

about

the
all

magazine
estimates

notes,

of

steel

production for this year have been

TO

cent

ANNOUNCE

THE FORMATION

OF

FRANK GINBERG &
CO., INC.
AND

TRADING SPECIALISTS IN

UNLISTED SECURITIES

BROAD STREET

•

TELETYPE:

DIGBY 4-2980

NY 1-5333

ASSOCIATES:
LOUIS MARINELLI
DAVID
j

GINBERG

AUGUST 1, I960




IRVING

ITTLEMAN

GERALD MARK0WITZ

against
say

Man"

etc.).
of the

excess

cost,

it,

130 million tons
Fourth

pected

to

was

as

those

who

job"

that

"snow

The

The

largesse

distribution

will

August 8

a.m.,

insistence

by Messrs. Ken¬
nedy and Johnson that the Cam-1
paign's start will be awaiting the
conclusion

of

gressional

session

on

We

clearly

prospectus fund

recall

that

the

in

Campaign the Tory capital¬
ists, who, findng their own assets
"under

were

125

this

month's

is,

than

of

in

Con-

course,

water,"

output

average

no

is

-

campaigning
partial TV

This

a

writer

(possibly

will

not

dwell

scuttling of the nation's
general legislative program into a

highway gutter, referred to by the
President
ton's

here

at

breakfast.

Thruston Mor¬
Others

Hoover

recollection of which

compounded

velt-hatemanship

their

after

no

Roose-

the

Re¬

confine

fiscal

ings

covery).
*

—

Incidentally,

we

have

area.

for

the

attention

vetoes.

Steel

There the August do¬
the most signifi¬

have
our

readers, in presag¬
exercise, by both
parties, of their "Fiscal Responsi¬
bility" as expounded in the Plat¬
ing

the

future

forms, when things get politically

an¬
are

Preview of "Fiscal Responsibility"

Democratic

Unfortunately for the country,
pork barrel-ing performance

Platform's

promulgated

"Right

the

of

recreation

be af¬

by the Congress at the beginning

Man"

to

can

forded by that
nasty old Treasury.
Our

simple

of

the

answer:

Simply by

recreation

reading

take

(perhaps

in

the

the

*"How I Made
$2,000,000 in the Stock
by Nicolas Darvas, American

Market,"
Research

Council, $4.95. "How I Turned
$1,000 Into a Million in Real Estate—
In My Spare
Time," by William Nickerson, Simon and Schuster, $4.95.

We maintain active

trading markets

in:

Scott-Mattson Farms, Inc,
Class "A"

Common

Prices

R. S. DICKSON &
COMPANY

steel,

have been just as
severe in recent
months as they were
during the
'58
recession, Steel, the metal¬
working weekly, said on
Aug. 1.

Blamed

most

frequently

generating the price

on

^

page 22

incorporated
'

'

)

•

Members Midwest Stock
Exchange

CHARLOTTE

NEW YORK

RALEIGH

for

pressures are

Continued

We

here to the

hot.

the

to those sour-pusses who

how

Presidential

our

will

cance

HOW THE TREASURY CAN
"MAKE A MILLION
IN
ITS SPARE TIME"

swer

override

Competitive Pressures Weaken
Competitive pressures on metal¬
working prices,
including

be

and

ber

off.

will

dealing adequately with the antics
of the
hard-running politicos, of

than

more

on

the

ex¬

70% of industry capacity.
Septem¬
is expected to be below this
level; October will top it. Novem¬
ber should show a

even

coverage).

ran
out on both
parties, in maneuvering for
actually political mileage through the pass¬
plugged for F. D. R. as the means ing, rejecting, or via successfully
or
unsuccessfully (the latter sin¬
to bail themselves out
(the em¬
cerely or insincerely) moving to
barrassed

Herbert

predicted.

quarter

and
with

buyers with the "inflation" scare,
or hope,
argument is obvious.)

having

record

a

The

has been done

form

year

inflation,"

nay.

ginning of the

leveling

NEW YORK 4, N. Y.

TELEPHONE

sharply downward in re¬
weeks. They now run from

December operations are a
ques¬
tion mark. But the auto
industry
will supply the
answer—later.

SPECIAL SITUATIONS

25

selling
million

—ZERO HOUR—

other
chronological

100 to 107 million tons.
At the be¬

to

RESEARCH

a

time.

government's

invalid,

worrying

revised

FRANK GINBERG
PLEASED

spare

copy

10

program,

antidotes,

substantial.

doubt

Inventories

,

1959

just

IS

the

free

in

1932

for

r1—(000's omitted

Chicago
Philadelphia

in 1950, with

of

with

mas¬

with
accompanying inflation, is certain
to

had been

expected.

preliminary

$26,191,423,833

in Sep¬

or even

business.

indi¬

be

nor¬

August.

Week

since World War II, with declines
in between. The first was in 1946-

cost

best

five-year cost of carrying out (?) be more than
recouped by the
"Rights readers'
prompt contribution of
of Man" proposals has been ex¬
income taxes on their
resulting
pertly calculated at some $80 bil¬ huge profits.
lion— a gross figure of Democrat
expense which is reducible by the

ordered

the at the rate of about 1.5 million
tons a month. At this rate most of
same week in 1959. Our
compara¬
the
six
million
tons
added
to
tive summary for some of
the
stocks in the first half will be
principal cities follows:
washed out by the end of

points of interest:

came

country,

possible

of

stand

against

"(1) There have been four up¬
swings in business capital outlays

48. The second

is

last

totals

expenditures in physical
terms—that is, in constant dollars

price

the

clearings; will

those

"Analysis of postwar trends in
capital

with

is steel that

have

growing

in

week

the postwar average.

will

with

Iron

above

fairly high level, but

week

cate that for the week ended Sat¬

weekly

larger

this

compared

mills

urday, July 30, clearings for all
cities of the United States for
which

a

tember

Year

ago.

cities of

business

and

10% Above
Last

of this

would

later this month,

telegraphic advices from the

ratio occurred in the 1949 and 1954

recessions,

Week

some

mally

Preliminary figures
peak will be lower than
complied by the Chronicle, based

upon

or

Were

Bank clearings
show an increase
a

wit¬

along

obsolete

30

Same

marked industrial expan¬

has

two, in one's

-

stricted and most of the expansion

the

those

As good Americans the citizenry
backlogs
strictly
sense.
Pure
non¬
operate above the incoming rate, is concerned with "fiscal respon¬
sense
is the plea that our
The Iron Age points out.
(that
public
newly sanctified
Now sibility"
servants are
going
to
use
these
backlogs are virtually non¬ term). This should be particularly
three weeks (the Senate
pace
than that of 1955-57. The existent.
true
of the community's
invest¬
convenes i
rate of increase for equipment is
Aug. 8, the House Aug. 15) to I
ment
population
because
of
its
This means mill operating rates
about the same as before, but for
transact
"the
public's
will be quite volatile if incoming relatively greater knowledgeabilpressing!
non-residential construction it is
business." Beating-the-gun for
ity of these matters.
the
Ironically,
business
continues
to
fluctuate
Great pre-November
noticeably lower. In fact after ad¬
however,
use
of
this
anti-extrava¬
Sprint,
from week to week. In fact, it is
they
justment for price changes, con¬
gance theme as a Campaign argu¬ are going to use the rarefied at¬
very possible that the
steel op¬
struction has advanced but little
ment may well run into a direct mosphere of the Hill for the nth
erating rate will show a drop at
since the third quarter of 1958,
kick-back
from
Wall
Street degree of fancy political maneu¬
the same time orders are rising.
while spending for equipment has
and the investing community. For vering.
However, the
magazine
moved up substantially. In other
says,
the nation-wide run of 12 % mil¬
"Present" On Both RolI-Calls
words, the current emphasis is on steelmakers are trying to mini¬ lion holders of common
stocks, in¬
mize this possibility. For the past
new
Of
machinery rather than
considerable
cluding
advantage to
particularly
the
army
of
few weeks mills have been pres¬
buildings.
investors in the mutual funds, are Candidate-Senator Kennedy, this
suring customers to place orders
convinced that they have a vested change of
"(4) In physical terms, expendicampaign locale will
now. Their argument: Unless mills
tuers during the present
interest in "Inflation," as
upswing
greased supply the solution to his problem
in
have been less than for the com¬ get enough orders to operate eco¬ by deficit
meeting the criticism of his
spending.
(The cur¬
nomically in August, they will be
parable period in point of time,
rently released elaborate public previous absentee-ism from Sen¬
forced to shut
down.
They are
in 1955-57. This is true of both
ate
roll-calls which
have
opinion survey, "The Investors of
been
having a hard time keeping some
occasioned by his continuous
equipment and construction.
Tomorrow,"
conducted
preby
the
equipment running until they can
Nomination
New
York
invasions
of
the
Stock
"(5) Based on the Government's bunch a number
polit¬
Exchange shows
of small orders.
ical
hinterland.
inflation
is
latest estimates the physical vol¬
deemed
the
second
Now, working
If
that
happens,
service
and
to
most important reason for stock- shoulder
ume of business
shoulder
with
his
capital outlays for prompt
delivery would be out the
ticket running-mate and
the last three quarters of 1960 is
Majority
buying; and that three times as
window.
Leader, he can devote the politi¬
likely to rise at a moderately
This pressure
has resulted in many people believe that "com¬ cally vital month of
greater rate than for the compar¬
August to
more orders and
mon
better tonnages.
stock
is
good protection simultaneous roll-call
able quarters in 1955-57."
answering

drop is not significant, be¬
civilian projects were re¬

of plant and equipment

of

how to make

on

the Democratic Platform's

Seasonally-adjusted figures, at
"(3) Thus far the rise this time
the annual rate, are given below
has been at a somewhat slower
(in billons of dollars).
1960

tomes*

the

Whatever the exact

numerous.

in

stated

Convention despatch,

week's GOP

orders

for

hammock)
or

anti-depression

more

Thursday, August 4, 1960

WILFRED MAY

STAKED STOCKHOLDERS

tonnages should be bigger and the
Orders

.

OBSERVATIONS...

.

The first faint traces of activity

Retail Tmde

The State of

Industry

Steel

for

Noted

.

Activity

Order

Increased

Electric Output

.

MIAMI

JACKSONVILLE

COLUMBIA

\

ATLANTA

CHICAGO

GREENVILLE

GREENSBORO

RICHMOND

Volume

,

Tillv

when

Number 5974

192

wh2

h

or

at any

/ ; The Commercial

Socialist

"things" were merely

luring, must impress on us
snl0f L are in-for later this
0

.

Party

to

the

Committee, July 5).
annual

.

271/2%
and

on

,

to

reduce

complained

depletion allowance

gas

revenues

Chronicle

(457)

Platform

' ;-

attempt

other time that osPecifically

IS in the

•"questionably indefensible

and Financial

-

"

of

in

oil

on

dividend

International Silver's New

suffered its la¬

grounds was the Federal test defeat on June 20. But this
I o v e e s'
pay-increase bill, frustration of perhaps the most
considered
over the President's veto. widely
loophole re¬
Hatted the existing inequities sulted, by a 62 to 24 vote, in a

Earning Power

nv

By Dr. Ira U. Cobleigh, Enterprise Economist

n

-Some

notes

heavily Democratic Senate.

categories of government

eween

in giving them a '17 %
rise against a concurrent

On

amniovees
n

the

"the people's" Treasury.
$750 million!
Who
voted to over-ride the
president's veto? All the Demorat ic Presidential
candidates,
Senators
Kennedy, Johnson,
Humphrey and Symington (none
of whom saw fit to emulate the
courageous minority stands so inmemorialized
in
the
former's prize-winning "Profiles in
Courage"; or to further this ideal
qo solemnly
promulgated in their
platforms: "When group interests
conflict with the national interest,
it will be the national
interest
which we serve").
Likewise
swelling the veto over-riding by
74-24 in the Senate and 345-69 in
the House were most of the Re¬
publican members (excluding
Speaker Halleck among a few
others). In the case of the "re¬
sponsible" Senator Fulbright who
to the surprise of this naive writer
was among the over-riders, one of
niringly

Party's

day Senator
Democrat of Wisconsin, We. have
most

was

the

voluble

complaints

platform,

providing
holding of income tax
dividends.

leged

in

his

for

an

with¬

interest

on

of

born

an

with

mouth"

expression
silver

a

"He

was

in

spoon

denoting good luck

his

Use

disappointing

Also

!

tors

leading
plugging" effort

"loophole
vote

42

annihilated

of

of

16

to

69.

by

No

Proxmire's

mous

brands; International

a

Ster-

joined

27

Republicans

in

opposi¬

tion.
A

proposal

featured
credit
a

to

another

remove

"loophole,"

the

4%

tax

dividends exceeding $50
has been giving

on

America.

high
that

and

When

clubs

in

you're

eating
the hog' it's quite likely

on

will

you

be

called

to

upon

make the socially correct selection
of
the
proper
utensil for
each

from

course

International

flat-

ware-

(which

year

In

armed

catering to glistening elegance
eating,
International
Silver
Company has been a durable and

don

successful enterprise. Its post-war

partial
tax

alleviation

burden)

the double-

of

was

barely

strong-

through, 42 to 41, by Lyn¬
Johnson, but even so requir¬

ing the affirmative votes of three
Republicans. In any event, repeal
of

this

"loophole"

is

deemed

to

in

years

but

not

were

golden. In

only

silver lined
1950 the company

reported net sales

of

$59.28

mil-

| Mundt

the

among
of the

(19-15)

who

tween

Sena-

Repub¬

their

President; in the House,
usually courageous
Auchincloss,
Joe Martin and Lipscomb of the
Platform" Committee

were

ST.

LOUIS,

Boxer
been

sistant

CULPRITS

Mo.—Bdnjamin

added

to

the

Midwest

staff of

Stock

A.

G.

Exchanges.

was formerly with WalCo., Inc. of San Francisco.

Joins White Staff

dis¬

(Special to The Financial Chronicle)

of such
solidarity.
The ST.
LOUIS, Mo.—Ruth B. Epstein
Democratic Platform's complaints
has joined the staff of White &
allegedly existing
loopholes
Company, 506 Olive Street, mem¬
and related
of

.

"abuses" for the bene¬

must be

bers

privileged groups,"

of

(See page 50 of The Democratic
Platform
"THE
RIGHTS
OF

{JJent,

wording

3,

page

Norman Thomas

Miss Epstein

Stock

Ex¬

was

Dean Witter Adds

the

of this year, INR exercised its
option to buy out the minority in-

terest

here.

There

is

also

Roll-

a

New

Products

There

result.

and

The

an(^ the

i960

the

solid

brass

giftware
line
(protected
against tarnish,
food stains and alcohol by "durabrite") includes 49 items. They
should simplify your next weddiiig gift selection problem as
they include butter dishes, silent
butlers, trays, wall mirrors, bowls
and compotes.
Further, at the National Retail
Convention (begins

Rolling Mill

sales

above

total

profit

are

expected

20%

and

Wire,
of

the

to

improve
Ultimately the

ratio.

was

declared

(Special to The Financial Chronicle)

PORTLAND,

docu-'

vember, and the

common was

1946.

in

by

the

operation

International's

formula

current

for

expanding
profitability
is
threefold: (1) diversification into
somewhat
above

related

lines
offering
profit margin popresentation of at-

average

tentials,

(2)

tractive

and

tant

4,400

there

and

common

and

are
about 4,900
preferred stockhold¬

ers.

Financial
with

no

position is excellent
long term debt and over

$24 million in current working
capital. There are 200,000 shares
of $1.75 cumulative preferred ($25
par) preceding the 372,088 com¬

policy in recent

to distribute

years

in cash around 40%
How does INR

of net.

common

fit into

investment programs at this time?
It does some electronic cable busi¬

the

From

the

foregoing

should

we

expect a rising trend of profits at
inr. This

is

Sales

in

from

$53.4

already in evidence.

1959

rose

to

$57 million
in 1958. Per

million

share net also increased from

$4.14

in 1953 to $4.55 in 1959

(not counting a
non-recurring per
share
capital gain of $1.38).
the

1950

continues.

$978,170

First

or

forward
half

59 cents

net

a

motion
is

up

to

share higher

than the first half results of 1959.
This

is

the

ing in five
,0f

the

Craig

best

years.

dinner

more

table

and

entertain

luxuriously. Moreover while

the old "family plate" used to last

lifetiipe,

several lifetimes,
table service are
creating the same sort of buying
urges that new models or styles
in cars, boats or furniture do. Why
balance Grandma's heavy old ster¬
ling spoon over a teacup when
a

designs

new

or

in

the lithe Swan Lake pattern pro¬

pels you
Age?

socially

into

the

a.

decades

has

been

making

earnings show- living and corporate profitability.
For the last half It should continue to do so.

the President, Mr.
Munson says: "we are

year

D.

enthusiastic

about

autumn

Amos Sudler Adds

busi-

(Special to The Financial Chronicle)
sterling, silverplate and stainless steel lines DENVER, Colo.—John W. Porterare
simultaneously offering un- field has been added to the staff
USual advanced new patterns and
of Amos C.
Sudler &
Co., 818
we
are
introducing an entirely
Seventeenth Street. He was for¬
new product—solid brass giftware
which will open new markets."
merly with Commonwealth Indus¬
neSs

jn

because

1959

expected to create an impor¬
expansion in silver sales this

.

pre

.

.

all

tax

earnings

We take

The management

Stock

at INR (N. Y.
symbol for the
has

Exchange

and

trial

Bank.

pleasure in announcing that

Mr. Carl M. Mueller

International Silver common)
been
has become associated

with us as a

busily

at

range program

the

of

base

work

on

a

long

that would broaden

earnings and

reduce

has been admitted

corporate dependence on the sil¬

Director

and

trade.

verware

Vice President

To

that

end

as a

General Partner

the

has acquired, at a cost
$2,700,000. the Eyelet Specialty
Company,
of Waterbury,
Conn,
and its wholly-owned subsidiary
Canadylet Closures Ltd. This di¬
vision is a large scale producer
company

of

Taylor, Rogers

&

Tracy

of lipstick cases and

INC.
MEMBER

MIDWEST

tainers.

STOCK

EXCHANGE

some

last
105

SOUTH

L.A SALLE

STREET,

CHICAGO 3.

ILLINOIS '•

was

:

f;'..

■'

.

FINANCIAL 6-1030




-7'

*

"-•v

The

main

expensive
year

con¬

had

relocation

but the

responsible

cosmetic
company

Carl M.

costs

Canadian unit.

for

the

net

of

$40,200 reported by International
Silver *of Canada Ltd.. /;'V -■
In 1955 International acquired a
51?%/ interest- in "Times Wire

and

note¬

worthy contributions to cultivated

year.

kr1der

Space

International Silver for over six

Diversification

edmund

-

ten

plants in the U. S. and one in
Canada. Employees number about i

pattern, with lines subtly suggest¬
ing the grace of the ballet; and
the new 1847 Rogers Bros, pattern

are

split

of

an Hawaiian motif, Leilani.
(Ought to be particularly effective
in eating water cress and lettuce! )
These exquisite new slver styles

that

2%

ness but you could hardly call the
appealing new decompany an "electronic." It prob¬
signs of silverware, and (3) hard
ably best fits into the "leisure
hitting" silver salesmanship
im- time"
category. After all, with
piemented by national advertising more
leisure, people in our "afflu¬
program for 1960, involving 192
ent society" spend more time at
ads in 21 leading magazines,

Earnings and Dividends

r

August 1, I960

,

No--

The magnitude of INR is docu

mented

with

we are pleased to announce

a

last

management aims, by further di- mon
shares listed on the NYSE.
versification
and
expansion,
to Price
range of INR this year has
have a much higher percentage of
been between 44 % and 55. Com¬
business from non-silver opera- mon
dividends
have
been
paid
tions—possibly as high as 50%.
regularly since 1940 with dividend

por

some

Times

Specialty,

contribute

to

Designs

interesting new
products which provide greater
diversity and should augment
profitability. For the first time in
its 62 years' history, International
is now marketing finished
brass
are

—Eyelet

dividend

four-for-one

ary

„

should

ing these days. There
stock

International will un¬
veil its new Swan Lake sterling

submitted
on

Company, makers of en- siderably more generous income
gineered cables for the electronic return than most people are buy¬

August 14)

Ore. — Richard
L.
by Carpenter is now with Dean Wit¬
behalf of the ter & Co., Equitable Building.

of

Cable

Jewelers

MAN," which incidentally dupli¬
the

Midwest

the

previ¬
ously with B. C. Christopher & Co.
change.

viewed against that back¬

ground.

cates

flatware

wares.

solution

fit of "certain

imports.

H.

William G. Cross have

Mr. Cross

Congressional
record reveals the per¬
absence
of
party align¬
drastic

and

ston &

the

ment; but rather the

1958

much leaner due principally
to intense competition created by
were

ancl

Sons, 409 North Eighth
Street, members of the New York

and

yoking

only

and

1, 1959 and a pleasing
expansion in 1960 sales of sterling

Edwards &

ing Congressional Carnival.

of

above-cited

(Special to The Financial Chronicle)

| kitty (at least ex-Veto) will be a
j significant feature of the impend¬

Scrutiny

the

A. G. Edwards Adds

ma¬

use of the Treasury as a Campaign

THE ACTUAL

his Platform

was

fective Nov.

Thus, the bi-partisanship of the

I

blamed

and

net
1957

,,

among

over-riding Republican
jority there (89-56).

share

years

Beginning in
Party defections on the Southern
Democrats and on the Party's past 1959, and carrying on this year,
lack of a White House patronage however, a substantial upturn has
been visible at International. The
whip. Interesting — and we shall
Japanese
competition has
been
see!
moderated by an import quota ef-

over-ride

the

Los

Japanese

majority
to

though per
and
past
$6.45. The
Angeles,

promise
in

Chester Bowles

Keating, aides

Senate's

voted

future

.

This

This is ample coverage for
the current $3.00 dividend. At 52
INR yields 5.77% which is a con¬

ternational

hotels

margins were 17% .of
margin, a matter of
interest to shareholders, is
increasing in 1960. For the first
quarter it was 19%; and over 20%
for the year is in the range of *
possibility. For the full year a
per
share net of between $4,80
and $5.00 a share seems predict¬
sales.

vital

able.

less

fellow-

Chairman Jackson

performance

were

and

ling, Internatonal Deep Silver; In- ing Mill division which produces
Stainless; and
1847 brass for the company and also
Bros.
Silverplate.
Sets' sells commercial brass to outside
Democrats, including Majority Rogers
from
some
of
these brands grace customers.
Leader Lyndon
Johnson, Senate
the most elegant homes and the
Campaign Chairman Thruston
These three non-silver divisions
Senate

than

Committee

Treasury

Capehart,

Scott,

licans

the

of

company

of operation.

industry. Since 1955, its annual
herited opulence. Chances are the'
earnings have averaged around
in question was made by $57,000 a year and book value has
International Silver Company, the appreciated by $288,000. In Janu-

Morton, and Democratic National leading

Ahead

renowned

spoon

close
associates
curtly ex¬ face almost certain defeat in the lion, a net profit of $13.24 per
plained, "Well, he's got to run in House despite its heavy Demo¬ share; and paid a $6 dividend. An
all-time high in sales, $70.9 miltwo years, doesn't he?"
cratic predominance.
lion, was achieved in 1953 alIn
discussing this schism be¬

Kitty

this

in-

or

his

Bi-Partisan

of

greater diversity

largest silver manufacturer in the
al¬
world, and producers of four fa-

This

likewise

was

in

introduced

amendment

and

resurgence

program

same

K
Proxmire,
ui rise in the Consumers Price who* later
the pressure group's raid endorsing
costing

the

on

its

5

Loeb, Rhoades

&

Co.

6

(458)

The Commercial and

by the large insurance companies,

TAX-EXEMPT BOND MARKET

The;

BY

DONALD D. MACKEY

million

$100

bonds

investors from

they

The

state

market

and

has

municipal

continued

this week at the

to

bond

$262,617,200;
lion

improve

steady rate

same

dominant

a

all manner of

The

utilized

trend

upward

innovations

to

in

bond

be

yield

week

week

average

would

to

seem

of

measured

point

prob¬

some

lems. For those who seek long term

capital gains
there

could

June

of

1957,
liquidation that
its

effect

recent

on

be,

upon

a

purchases

there

as

was

coincidence

of

withering in

the

market.

But

Inventory

Melts

treme

than

volume

duced

to

without

that

could

this

not

moderate

to

levels for the year. Within

brief

a

period, the government market
regained strength, heavy state and
municipal
new
issue
financing
gave way to a very light schedule
and investors turned towards tax-

exempts for
stock

and

involving the
develop¬

reasons

market,

ments

political

consequent

tax

prob¬

lems generally.

Moreover,
investors

institutional

some

were

belated

in

a

result,

the

municipal

Blue

total

safe.

List

is

state

more

than

a

4%%

revenue

series

B

bonds

the

last

average was

$100

pledge

tunnels,

of inter¬

year

series

million

A

first

series

bonds;

revenue

crossing

water from

Cape

on

Creek

Other

the

on

C

all

17)2

miles

of

Kiptopeke, Vir¬

Charles
south

to

shore

Little
of

the

bay. This crossing will replace the
ferry boat system which now plies
the route. This time

saving project
designed to facilitate travel and
induce,

well

as

greater

as

traffic

generate,

volume.

The $100 million first and second

pledge

bonds

were

reportedly

oversubscribed, for the

Rate

(State)

Connecticut

(State)

,

New Jersey Highway
New York (State)

Pennsylvania

Auth., Gtd.__
•

(State)

Vermont (State)
New Housing Auth.

„

Baltimore, Md
_

New Orleans, La
Chicago, 111.
New York City, N. Y

most

part

flotation

ated

large

Chesa¬

there

has

been

but

underwriting activity in the
Street during the past week. On
Thursday
(July
28)
$5,150,000
Delaware County, Pa. general ob¬

bond?

Priced

Maturity

Bid

yield

from

1.85%

to

3.35%, this very high quality issue

given only

was

vestor

Less

than

half

the issue has been sold thus far.

Monday,

Wash,

awarded

park

1978-1980

3.75%

3.60%

1980-1982

3.30%?

3.20%>

3%

1978-1979

3.20%

3.05%

3%

1978-1979

3.15%

3.05%?

3%%>

1974-1975

3.00%o

Conn.

County, California-McHenry County H. S. D. No.
155, Illinois
New
Ulm
Independent
School

1,100,000

1963-1980

2:00 p.m.

Ohio State Univ. Dormitory Ohio-

4,360,000

1961-1999

Worcester, Mass.

2,200,000

1961-1980

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

Aug. 10 (Wednesday)
Granville,

Hampton

&

S. D. No. 1, N. Y.

Cent.

Macomb
Marin

Co., Michigan
Co. Municipal Water Dist.,

—

California
Terrebonne

—

Parish,

Wall

Louisiana—_

Conn.

Township, N. J

them

have

been

sold

half

The

Chase

group, which
ton

&

Co.

Manhattan

have

been

Cabrillo Jr. Union Jr. College
.California

MacDonald-Moore

well

Illinois

California

Boston,
lion

the

City of
$1.5 mil¬
obligation
bonds

Mass.

(1961-1975) to the Bankers Trust
Co., The Chase Manhattan Bank,
Blyth & Co. group. Priced to yield
from

2.10%
slow

was

since

it

to

3.55%^, this issue
investors,. partly

with

priced

was

long

—

Dist.,

Redevelopment

the

issue

new

term

the

On

the

the

State

Washington

East

of

the

—

Bay Municipal Utility

day, the
Utility Dis¬

bonds

This
even

for

Sept.

Tempe,

Ariz.

for late

a

sum¬

-

weeks

market

there

resistance
Yields
sense

Still

the

to

still

A

gains

seems

almost

heavier

issue schedule may
ten

"VyS-'Y'M

/////•\

'H

H

■

New York Stock

Members

Exchange

Honolulu Stock
and

Private leased
radiotelegraph
circuit to Honolulu

•

LOS ANGELES

42 Offices




•

NEW YORK

Serving Investors

rising

before it reaches

an

price

price

Angeles,

new

11:30 a.m.

1:00 p.m.

1,200,000.
1,000,000

1961-1985

7:30 p.m.

1962-1985

2.30 a.m.

1961-1995

10:00 a.m.

1961-1977

2:00 p.m.

1961-1990

11:30 a.m.

5,900,000

34,000,000

1,000,000

Transit

'

California

.

.

16,500,000

1961-1980

1,000,000

1963-1985

2:00 p.m.

1961-1980

10:30 a.m.

4,000,000

Sept. 12 (Monday)

view¬

to flat¬

1961-1990
1962-1982

Sept. 8 (Thursday)
Los

serve

Costa

rise.

autumn

Noon

9,157,000

District, California
St. Anthony Indep. School District
No. 282, Minnesota.—

considerable
every

1963-1990
;

2,000,000

present

Red

Wing Indep.

School

Minnesota
San

District,

Francisco, California

—

curve

1,500,000
21,455,000

—

2:00 p.m.

1961-1975

Sept. 14 (Wednesday)

unsupportable

"Greenwood Metro. Sewer
District,

level.

South

Shearson, Hammill Office
TUCSON, Ariz.—Shearson, Hammill & Co., has
opened a branch
office

SAN FRANCISCO

the

recent

a.m.

8:00 p.m.

Carolina

__

.

/

.

.

1,600,000

■,*

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

Midwett Stock
Exchange •

'

out

Alameda—Contra
tax-

of

little

further
make

from

point.

Attractive

handsome

11:00

Sept. 7 (Wednesday)

.

Yields

1:30 p.m.
'

Sept. 1 (Thursday)
Myers,j FloridaRochester, New York
Washington Suburban Sanitary
Dist., Maryland

1960.

mer

: 1990

1961-1986

1,630,000

Fort.

12

represents

1,000,000

3,371,000

30,000,000

$30

on

1961-1990

Aug. 30 (Tuesday)

bonds.

largest.

8:00 p.m.

1961-1998

Dist.,

California

Thereafter,
Francisco's offering of $21,-

San

1961-1990

1,500,000
4,500,000

Aug. 24 (Wednesday)

next

Bay Municipal
trict, Calif, will take bids
serial

a.m.

2,850,000

4,000,000
2,100,000

Cherry Hill School District, Mich.
Parish, Louisiana
San Mateo Jr. College
Dist., Calif.

offerings on
Through

East

million

a.m.

,10:00

*

City Sch. Dist., Ohio

scheduled flo¬

no

involves

23.

11:00

1965-1990

7:30 p.m.

1,100,000

Iberville

lack

tation of greater than $24 million.
one

1961-1985

Aug. 23 (Tuesday)

calendar.

Sept. 15 there is
This

a.m.

1963-1990

_

Washington Suburban Sanitary
Dist., Maryland

tax-exempt bond market is

near

10:30

Agency,

The favorable technical
position

sizable

1963-1980

Aug. 18 (Thursday)

Continues Lean

by

Y.

S.

South Carolina

unblemished

emphasized

N.

D., Mich.——.
Spartanburg County (LibertyChesnee-Fingerville Water Dist.),

somewhat

financial record.

of

a.m.

1,070,000

2,000:000
15,000,000
3,000,000

•California

secondary market for
offerings. There are many

further

10:00

Aug. 16 (Tuesday)

Holland

who believe that the credit
repute
of Boston is underrated in view
of
the
city's

of the

1962-1997

Aug. 17 (Wednesday)
Fresno

ahead of the

similar

2,200,000

.

—

,v:

Dearborn, Mich.
Henderson, Ky.
Niagara Co., Water

awarded

general

DISTRIBUTORS

Dean Witter
&Co.

1961-1985

taken.

Tuesday

on

Dist.,

(State of)

Tri-Cities Mun. Water Dist., Calif.
.

Also

455,000 serial

rif* w.'

2:00 p.m.
8:00 p.m.

Aug. 15 (Monday)

included E. F. Hut-

and

Ball State Teachers College of Ind.
East Side Levee & Sanitary Dist.,

Bank

& Co. The issue has met with some
demand by investors and bonds

exempt

a

1961-1979

Aug. 12 (Friday)

out.

Tuesday, Aug. 2, $1,805,000
Hartford, Conn, general obligation
(1961-1980) bonds were awarded
to

-

of

On

Despite

jfis

a.m.

2,214,000
1,427,000

2:00 p.m.

from
than

Aug.

•

a.m.

10:00

1961-1989

yield
more

3.35%,

• BROKERS • DEALERS

11:00

1961-1980

Aug. 11 (Thursday)

—

^.^UNDERWRITERS

1964-1989

1,300,000

1,425,000

to

and

light schedule

,

3,000,000

10:00 a.m.
2:00 p.m.

1960-1989

Schenectady County, N. Y.—_——

is

,

1961-1989

2.15%

3.40%

3.45%,

Complete Investment Service

2,295,000
6,600,000

scaled

to

1980

3.80%,

Hebron,

Whitehall

were

Washington offering scheduled for

3.85%

Minnesota

8:30 p.m.

2:00 p.m.
3:00 p.m.

3.60%,

1980

1961-1979

1962-1981

3.75%,

3%,

2,200,000

2:00 p.m.

1962-1986

1978-1980

3.60%,

1981-1980

2,450,000

3%%
3)4%,
3)4%
3V4%,

3.75%

1961-1980

1,500,000

3.05%,

1977

2,098,000

Russellville, Ky.

The

3.20%,

3.20%

Noon

bonds

Bank.

3.15%,

3.50%,

1961-1975

National

3.35%,

3.35%

10:00 a.m.,

First

1978-1979

3.60%

1962-1984

Indiana State Teachers College,
Indiana

1977-1980

1980

1,610,000

11,000,000

<

District No. 83,

(1962-1980)

3y8%

1979

8:00 p.m.

1,000,000

——

Angeles

Wallingford,

Aug.
1,
Seattle,
$4.5 million gen¬

obligation

1961-1980

C. J. Devine & Co. and The Seattle

Aiked

3%%

1960 Index=3.33%

Los

fairly good in¬

a

reception.

On

Enfield,

Westlake

3M>%

3.10%>

to

5,480,000

Aug. 5 (Friday)

the

to

Calendar

3y4%

„_

August 3,

the

3V2%

—_——

(N. Y., N. Y.)

Los Angeles, Calif

Cincinnati. Ohio

than

little

MARKET ON REPRESENTATIVE
SERIAL ISSUES

California

—

Awards

Recent

bonds to the syndicate headed by

due in the year 2000. The
proceeds
be utilized to build a con¬
tinuum of low level
bridges and

ginia

District, Mass.-—_
Control Dist.,

Flood

Indiana

Aug. 9 (Tuesday)

peake Bay Bridge-Tunnel negoti¬

will

open

Boston Metro.

Indianapolis

Waterloo, Iowa

underwriters.

Other

eral

bonds; $30 million
second
pledge revenue

and

third

As

at

28,

of about eight points.

million

much

and

currently

July

on

pledge

is

quite

3.86%

early January this

$70

to

seem

the

million, were underwritten
and brought to market this
past
Monday. The offering consisted of

their

didn't

the

awarded

tax-exempt bond programs, and
further waiting for better fulfill¬
ment

when

S200

high

new

26

negotiations, the Chesa¬
Bay Bridge and Tunnel
District, Virginia issues, totaling

stantially reduce this abnormally
high street float but also pushed
through

Jan.

on

peake

a

market

low
this

mittent

general market sell-off.
A coincidence of powerful market

the

the

our

months.

After

re¬

only to sub¬

Index,

market reached

Chesapeake Bay Financing
Markedly Successful

proportions

factors combined not

by

was

average

ex¬

be

of

past
point.
As

4.31%. As between then and July
28. turnpike bonds had gained an

$470,COO,000, it

reasonable

'

participated. A formi¬
dable retail job was done by many

ligation

A

more

were

Boston

Thursday, August 4, 1960

.

the following tabulations we list the^bond issues
of
$1,000,000 or more for which specific sale dates have been set,
Information, where available, includes name of borrower,
amount of issue, maturity scale, and hour at which
bids
will be opened.
Aug. 4 (Thursday)

group

six

few short weeks ago,
wrhen the Blue List compilation of
state
and
municipal,
offerings

totaled

ing

dex
(3.33%)
represents
a
four
point average gain in high grade
20-year tax-exempt bonds in about

In

bond market has definitely estab¬
lished a strong trend on its own

seemed

a

an

reporting date. This represents a
one-half point gain as against the
previous week's average (3.88%).

Regardless of the strong leader¬
ship exerted by Treasury obliga¬
tions,
the
state
and
municipal

merits.

represents

one-half

the

of

aged

few realized their potential profits.
Dealer

v;

.

managing underwriters

First

the

(1961-1990) were
Phelps, Fenn &
The Smith, Barney &
Co.,
C.
J.
Devine
& Co., White,
Company
Turnpike Bond Yield Index aver¬ Weld & Co., Stroud & Co. group.

in

was

we

yield was 3.61%. Trans¬
posing to dollars, the current In¬

improvement

present

as

down from 3.37%
This

over

year

rate

;

,

well han¬

was

coordinated to

.

In

market rise for the

average

months ahead but its realization at
recent

The

received.

Higher

index is 3.33%

ago.

outright bull market in Treasury
issues. A strong market for these
issues is generally predicted for
the

Again

to press;

go

the sizable August re¬
have1 not
seemed
to
the enthusiasm for the

dampen

market.

high.

and

coast

Corp., Allen &
Co., Merrill Lynch, Pierce, Fenner
The Commercial and Financial & Smith,
Inc., and Willis, Kenny &
Chronicle's high grade tax-exempt Ayres, Inc. A sizable underwrit¬

in

funding

recent

The

Treasury securities.

so-called

than $200 mil¬

more

the

Prices

that prevailed during the previous
week. The market is led, as
before,

by

under

well

and

to

well

to

.

Larger Issues Scheduled For Sale

pledge

generally

coast

quite
The underwriting
were

dled

third

:

offered

were

Financial Chronicle

•

CHICAGO

with

at

20

East Alameda

Howard

Stanton

W.

managers.

B.

Sept. 20 (Tuesday)
Milwaukee, Wisconsin
^

Los
Street

Cursey, Jr.
Frederick/ Jr.

Oct.

5

(Wednesday)

Angeles Department of Water
Power, Calif.

and

___

—

and

Los

12,000,000

Oct. 18 (Tuesday)

7
co-

Angeles Co. Flood Control

District, California

.

V

10,750,000

—

10,000„000

—-

m
———1

—

Number 5874

192

Volume

.

.

The Commercial and
Financial Chronicle

.

(459)

Consumer Credit Industry
Faces Serious Problems
Paul H. Wil liams,* Executive Vice-President and Counsel,
Loan arid Finance Corp.,
Washington, D. C.

By

Problems in evolving a model consumer finance law

are

recounted by

the borrower but terms

disclosure to

Installment Credit field

Consumer

March

of

as

jows:

billion,

auto-'-,

mobile

sales
$10

finance;

Paul H. Williams

r

of

homes; $10

experience has been
confined principally to the Con¬
sumer

Installment

I will

limit

Loan

of

most

business,
remarks

my

billion

$10

outstanding
in personal installment loans, Con¬
sumer Finance
companies held ap¬
proximately
32%,
Commercial
31V2 %

17h %,
some

Sales

Credit

♦

Finance

Unions

companies

9%; other institutions, such

Industrial Banks, Savings Banks

as

and

miscellaneous,' held

the

re¬

maining 10%.

Generally

speaking, Consumer
Companies make their

Finance

loans under

legislation

following

the general pattern of the
Uni¬
form Small Loan Law which was

In the
the

month

per

business in

pending

back

,

in

1916.

laws, with

variations,

m

46

amount

and

Maximum

While

method

of

permitted

t

States

some

maximum rate set forth

percent per month"
based

unpaid
ut

balance.

the

num

basis.

In

others

nm

permitted rates
elude both of
these

te methods. In

of
a

a

the

on

A few States

maximum rate
dollars and cents on

n

as

set

charge
per

an¬

the

maxi-

of

charge
alterna¬

as

few States the
r
fs ,are divided into two parts
ft? which may be 'charged
'

a

investigating;

*, oan and,
.eent

,

and

second,

!3er annum,

making
on

the

borrower

onp1

amount of the loan. In
?.r *Wo. instances there are
I tinnm
ns of ihis, with an addi| hanar seParaic charge ' for the
Va_.

rno

tbe

J1"8. and servicing of the
j0aj^ installment payments on

)!hat Commercial

Banks Do

Banks
a

tf,,l

,,

making

are

lastallment loans

ir'gtvnnf hodge-podge''

under

of vary-

of laws, or adaptations cf
"Morn al,10ri§inally known as the
Crf f.systera'the p™vi-

wi 4

tione

nf

count

,

whicn

cover

^eT ^ndustr'al

Panio^

!

act^h^

the

opera-

Loan

com-

Infustrial Banks of the
*n S0me cases enabling

tfVe been Passed by States
alon-.in?
an investiSation fee,
ith

Perr

*

v

an

interest charge, per




invest¬

an

in

the

same

the loan, to be paid for

as

which

is

rower

as

the

maturity of the loan,
then used by the bor¬

term

these
and
or

offset

an

In

note.

Industrial

an

unite

the

fit,

com¬

Own

would

provision

the

have

we

been

causes

law

cent

an

as

to

month"

per

Sage
of the

making and
installment

interest

compared to the

per

annum,

was

charge,

orthodox

6%

particularly

de¬

signed to

so shock the. prospective
borrower it would stop him from

simple

a

aware

the

of the allinclusive charge, stated as a "per¬

see

order

such

in

bor¬

emer¬

Russell

fully

was

involved

dire

handling
of
small
loans, the innovation

business

in

for
the

a

these controversies—is the this.

constant

in

to

work

within

framework

of

Sage

Small

our

effort

legislation

If

involved

of

from

consumer

To my

branch of the industry—Con¬
sumer
Finance
companies. For
years

efficien¬

restrictive

some

example,

as

cost

to adopt if we
worrying about

to

for

Foundation

developed

loan

the

except
While

coupon payment book. making
any but a really necessi¬
mind, the great problem tous loan.
which we face—and the one which
We have long since outgrowh

in spon¬

from

been

deter

rowing
gencies.

ad¬

or

ours

without

use,

Branch

come

operating

have

amendment

tiling

The major obstacle to any such
program

legislative

installment

should be

to

location, it
choice, and

determination.

of

use

which

for

Industry

the S

the

drafts

Loan

the

of

the

This

after
another
with respect to what we need in

These

served

new

now

general

original

Law.*

196's

out

Rus¬

Uniform

is

individual

accepted

going to give us
"constructive, adequate and pro¬
gressive legislation," we had bet¬

in

ter stand back and take

Maryland,

look

at

what,

we

our

When I

piercing

business

own

to

as

are

There

indebtedness.

part of

our

way

It

of

with

posed

really need.

our

company
in
of the first assign¬

one

ments I had

see

into this business

came

1936

to work

was

amendments

;

to

011

the

loan law of this State.

We've

have

They

life.

are

a

laws

purpose.

longer needed.

no

to

or

is wrong!

remedial

their

is
social stigma attached to credit

no

controversy

a

the way of legislation. If we could

adopted

in

various

the

However, there
ferent views

on

are

as

States.

As

pro¬

small

a

prac¬

Outgrown Remedial Laws

controversies

ciples, but

are

often

more

poses

example, we were recently
working on legislation for a cer¬
State and

of time
ment

on

of

spent

whether

a

or

.

was

not

state¬

a

an

of

these

controversies

continue

sec¬

tion by section.
We

ning
Such

a

come

up.

ethical,
and

been

have

battle

over

fighting a run¬
dual business.
should

problem

legitimate
engage

•restrictions, regulations and laws
which

business.

they

cost

of these

should

necessarily

be,

of

for

the debt of

consumption

However,

an

the

ex¬

dustry

was

to

member

rate

but

—

being

accepted

nity.

I

realize

legal in¬

nomic

included many

which

one

by the State
of

the

was

and

as
a
responsible
business commu¬

feel

they

and

appreciate

and

businessman tended to protect the borrower.
in the small The other expressed purpose was

social

have

failed

the

changes

Continued

on

licenses

Small Loan

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

an

The

to

buy these securities.

Usury Laws of

State, charging the maximum

interest rate with the

addition

of

$100,000,000

including insur¬
particularly since most of
loans are secured by liens

automobiles.

on

It

is to be.

institution

Loan

Installment
under

noted that, each type
handling Consumer

varying

legislation

various

mitted by

Thirty-Five Year 4iNs% Debentures

specific
Dated

subterfuges

interest

the

because

of

types

Telephone Company

operates

conduct their oper¬

or

under

ations

paper

Southwestern Bell

rates

Due

August 1,1960

August 1,1995

per¬

the Usury Laws of the

different States are far too low to

Price 101.507% a?id accrued interest

Installment

Consumer

permit

Loans to be made at a

profit.

Suggests Enabling Act for All
Credit Institutions
To

someone

familiar

not

with

business, the first suggestion
to a constructive and adequate

this
as

The

would seem to be the
adoption of an enabling act in
each State, under which all these
program

institutions

qualify

could

their ' operations.

conduct

HALSEY, STUART & CO. INC.

all, generally speaking, each is
engaged in making cash install¬
ment loans to the sariie type of
individuals in the same

communi¬

United States.
not sure this woul'n't be

am

most

the

could be

constructive step,

if

it

accomplished.

tions t

e

Federal and State Credit

Unions as I feel
if

not

from

impossible, to oust them
sacred place they pres¬

society, com¬
peting with private business with¬
necessity

of paying

I. duPONT

& CO.

A.

WERTHEIM

&, CO.

G.

&

BECKER

CO.

INCORPORATED

R. S. DICKSON

BAXTER & COMPANY

BACHED CO.

COFFIN & BURR

&

COMPANY

any

HIRSCH

&,

CO.

SHEARSON, HAMMILL & CO.

INCORPORATED

SPENCER TRASK

WEEDEN

& CO.

&

CO.

BURNS

BROS. &,

DENTON, INC.

INCORPORATED

J. BARTH &CO.

BLAIR&CO.

WM. E. POLLOCK & CO., INC.

STERN BROTHERS &, CO.

INCORPORATED

the

the

FRANCIS

MERLE-SMITH

SHIELDS &, COMPANY

it is improbable,

ently occupy in our
out

&.

BEAR, STEARNS & CO.

LADENBURG, THALMANN & CO.

HAYDEN, STONE & CO.
DICK

HUTZLER

BROS. &,

INCORPORATED

outset we have
eliminate from such considera¬

Of course at the
to

SALOMON

of the

ties
I

Prospectus may be obtained in any State in ivhich this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

and
After

:'7,r'?7

-he"

'■

August 3. 1960.

'

'••V.:*'.

'' •';

V

—

-UV~.
.

•

"*

' V *

\

_

.

regu¬

to

eco¬

which

have occurred in this country since
the early 1900's, bringing about a

stringent rules and regulations in¬

This announcement is not

in

gradually

States

Law, or in
simply operate

many

Timers"

industry grew up when it was
changing'if rqm a "loan shark" in¬

In consequence, these small loan
Jaws gave only one permission—
the right to charge a rate in ex¬
01*

I mentioned,
"Old

par¬

age.

the

was

lated

customary

as

so-called

abhorrent to the public conscience.

of the

in¬

loans much higher than

frowned upon and

terest

never

make the

stallment

ticularly in this day and

fees and charges,

of

pur¬

been

Remember, please, at the time
original small loan laws
came
into
being, all debt was

cess

After all, if you. are an

want to

practical
shark has

deplored. Personal borrowing,
cept for a serious emergency,

legislation, and

proposed

all

loan

individual

.

tion

laws

these

great deal

absolute
requirement in- a Consumer Loan
Law.
As, you can see, we can't
even agree on the very first sec¬
purpose

For

the

driven from

For

tain

loan

function

another.

prin¬
details.

on

on

small

known any other industry or busi¬
they
admirably ness in this country which volun¬
performed.
Now
nearly
every tarily, and in many cases by ac¬
State in the country has workable tive
insistence, was able to sur¬
loan legislation in one form or round itself with so
many costly

This

segment as there are companies
and individuals in it.
Sometimes
these

original

signed to stop the loan shark evil.

dif¬

many

The

.

this subject in our

Loan

they

cases

other

obtain

companies

operate under

many

payment of

or

of
the

making

in full at the

interest

an

based

of

the

monthly payment plan suf¬
ficient to pay for such certificate

the

have

In

a

these

States

law.

follow

system

certificate

amount
011

stating

differ,

unpaid

ways, de¬

State

e

they

Plan"

selling
ment

ance,

of

be

may

the

term loans at the maximum legal
rate of interest, at the same time

the

rates

laws

majority of the

the

Such

in force

are

States.

charge in these
vast

Foundation

un¬

of State

rate

variety of

a

upon

under the general

Sage

the

on

Sales Finance companies handle
Consumer Installment Loan

the

or

usury

their

brought into being and sponsored

45

the

term loan,

case

on

by the Russell

beginning

Of the

one

balances.

"Morris

to this field.

Banks,

are

rate of in¬

a

month

per

Unions

1V2 %

my

the

many

Credit field, at a permitted

of 1 %

Credit

billion, personal installment loans.

Of

cies

own

In

under

to

Criticizes His

banks

the amount of

paid balances.

and modernization

Since

permitted

The

to the

own

matter of

a

sell

tax-exempt cooperatives, com¬
vigorously in every Con¬

rate

goods; 2V2 bil¬

i

jurisdictions

on

sumer

of

r e p a

basis.

annum

salary paid

individuals actually

or

development 01 the Consumer
Installment Loan business.

peting

consumer

lion,

per

the

as

other
installment
billion,

financing

a

the

your

other

some

same

ticing lawyer from Iowa who knew
-little or nothing about this busi¬
generally on a discount basis, and
most
of
the
tr.en requiring the borrowers to get the leaders in our own field and
adaptations, ness, I was absolutely astounded
to agree on a modern approach to amendments and revisions follow
to
see
our
make monthly
industry submitting
payments into a
this problem, I am sure the other the pattern
of remedial legisla¬ and agreeing to proposals which
savings account sufficient to pay
The early small loan laws in my
segments of the industry would tion.
off the loan at
judgment place a noose
maturity.
be more than glad to unite in an of
necessity were remedial be¬ around its neck—and I have yet
Credit
Unions
operate
under
effort
to
get
such
a
program cause they were principally
de¬ to change my mind. I have never
Federal or State Credit Union acts

■■

fol-..
SI6V2

as

on

law

i n
each of the
respective
amount

was

in

be

and

the

at

ministrative

to briefly review the histori¬

sary

based
on
the
original
the loan. In others, a
dollar-charge has been authorized

terest

classifications

is

not

cal

of

charging the maximum

The
approximate

at an employer's
Their greatest expendi¬

annum,

amount

should

able to

are

facilities

expense.

ture

they

as

business

business

expense,

soring an all-inclusive Consumer
Installment Loan Bill, it is neces¬

some of the proposed Federal

of

31, 1960.

obtain

rent,

loan

they have

cases

overhead

no

in this business

grow. The author refers

provisions on this as impractical; and warns that failure to end
restrictions and the hodge-podge of State laws will invite direct
Federal regulation of the consumer instalment credit business.

According to the Federal Reserve
reports, there was approximately
0391/2 billion

as

plications involved in getting the
other types of companies engaged

bills'
the

such

In order to understand the

archaic restrictions said to be harming the industry; endorses full

to

many

or

conducting their operations, which
they have expanded far beyond
the purposes for which
they were
brought into being.

Williams who chides his branch of the industry for failing to'
agree among themselves and to keep up with modern operating prac¬
tices. He suggests junking the old small loan law—and starting anew
-convinced that a fresh, united approach must be pushed if con¬
finance companies are to prosper and

In

little

individual

State

Mr.

sumer

taxes.

7

" ff \ ft
,

•

V

•

'

V '•'•

;•

y'y.

.

r<

page

23

8

The Commercial and Financial Chronicle

(460)

.

Thursday, August 4, 1960

National
Quotation Bureau Borman Food Stores—Analysis— Walter E. Heller & Company
Freehling, Meyerhoff &
Averages, both as to yield and L. F. Rothschild & Co., 120 Broad¬ Data
market performance over a 20- way, New York 5, N. Y.
Co., 120 South La Salle Street
c»
year period — National Quotation Bristol-Myers—Review—Hirsch & Chicago 3, 111.
Bureau,
Inc., 46
Front Street, Co., 25 Broad Street, New York 4, Interchemical
Memorandum
New York 4, N. Y.
N. Y. Also in the same review are Laidlaw & Co., 25 Broad
Street
data on P. Lorillard Co. and Ro¬ New York 4, N. Y.
"
Savings:
the

DEALER-BROKER

...

.

.

.

—

INVESTMENT LITERATURE

—

_

AND RECOMMENDATIONS
IT

SEND

TO

THE

THAT

UNDERSTOOD

IS

INTERESTED

FIRMS

PARTIES

MENTIONED

THE

the

"Investornes" —
& Co., 1 Wall
Street, New York 5, N. Y. In the
August

Francis

WILL

FOLLOWING

Capital for the Sixties—

In

PLEASED

BE

LITERATURE:

I.

issue

same

Johnson

lishing
Automatic

Industry

Vending

Discussion in

Also

available

—

American

—Nomura

ity Place, New York 6, N. Y.—15<£

Broadway,

copy,
$1.00 per year. Also
in the same issue are articles on

Also

per

Corporation of

Transportation

Corporation,

Diversey

the

New

Beneficiaries
—

ment

discussion

a

the

foreign

born &

of

New York 5,

Company, 99 Wall Street,

investment

Tube,

Steel

Venture Capital Investment Com¬

panies—Review—Cooley & Com¬
100 Pearl Street, Hartford
4, Conn. Also available are data
pany,

American Machine & Foundry.

on

tions

Broadway,

&

New

Life

Insurance

Companies

—

12

for

investing—12 revised
$1.00 per copy — J. H.

reasons

113th consecutive

—

edition,

Goddard & Co., Inc., 85 Devon¬
the shire Street, Boston 9, Mass. Also
United States
New York Han- available is a report on Simplex
seatic Corp., 120 Broadway, New Paper Corp.
York 5, N. Y.
Market Commentary—Bulletin—

leading

Pennsylvania

—

Railroads

for

Track

—

Goodbody
York

&
4,

Co., 2
N. Y.

Also available are data

on

Amer¬

Analysis

—

New

Broadway,

Winslow, Cohu & Stetson, Inc., 26
Broadway, New York 4, N. Y. Also
in the bulletin is a report on Min¬
ute Maid.

ican Machine & Foundry.

Motion

Food Processors—Analysis—A. M.

sis

Kidder & Co., Inc., 1

tures

Wall Street,
New York 5, N. Y. Also available
are

data

Bristol Myers Co. and

on

Continental Connector Corp.

Shops,

turing

Boeing

Co.,

Pacific

Texas

Droulia

&

Columbia

on

Pic¬

Twentieth

Century

Pictures

versal

Co.,

Film

Fox

Corp., Uni¬
and

Warner

Brothers Pictures.—Sutro Bros. &

Co., 80 Pine Street, New York 5,
and

Airplane

Land

data

Corp., Metro
Goldwyn
Mayer, Paramount Pictures Corp.,

on

Manufac¬

Rheem

with

Industry—Analy¬

Corp., United Artists

Four Low Priced Stocks—Data
Lerner

Picture

Trust

N. Y.

Co., 25 Broad Street,
Y.

New York 4, N.

New

Toronto

Commission

Stock

Rates

Corpora¬
of

containing information

booklet

on

82

com¬

panies—Singer, Deane & Scribner,
Trust Building, Pittsburgh
19, Pa.

Union

*

*

*

Fahnestock

Review

-r-

Bulletin

—

—

Central

York

—

Northern

Japanese Market

York,

—

Securities

Review

Co.,

of

—

Ya-

New

Inc., Ill Broadway, New
6, N. Y. Also available are

York

reviews

of

Komatsu

Co.

—

Securities

Co., 65 Broadway,
New York 6, N. Y. Also available
is

Service Co.

review of Public

a

Also

available

Review
Co.

of

—

Ya-

N.

Memoran¬

Aeroquip.

on

Pont,
Milk

Inc., Ill Broadway, New
York 6, N. Y. Also available are

stocks.

York,

reports, on Hino Diesel Industry
Co. and Takashimaya Co.

Analysis —
Co.,
Ltd.,
25
Broad Street, New York 4, N. Y.

Nikko

Securities

on

Walston

&

New

Co.,

Inc.,

York

5,

N.

of

showing

an

between

stocks

Textile

used

up-to-date
the
in

listed
the

—

counter

Folder

compari¬
industrial

Dow-Jones

Averages

and
the
35
over-theindustrial stocks used in

Report

Seventh

Calif.

Sutro

—

Co., 210 West
Los Angeles 14,

available

reports
Disney Productions, Inc.

Walt

are

on

Analysis

—

—

Inc.

plus

a

nationwide wire system

mar¬

are at your

disposal to facilitate orderly disposition

or pur¬

Street,

Diamond Alkali

Company
&

Re¬

—

McKinnon,

of Buffalo

2

C.

Street,

West

Inc.

Memorandum

—

Securities

10th

Street,

Co.,

Kansas

—

Inc., 15
City 5,

Corporation

—

Analysis

—

Memo¬

Sutherland Paper.
Beckman

Instruments

randum

—

Merrill

Fenner

&

Smith

—

Lynch, Pierce,
Incorporated, 70

Street, New

York

are

N.

Y.

memoranda

5,

on

Alkali,

Electric Storage Battery,
Zerox, Hertz Inc., Heyden
Newport Chemical, Lerner Stores,
Lone Star Gas, Long Island Light¬
ing, Orange & Rockland Utilities,
Haloid

Burry
Biscuit,
Texas
Instruments, Norris-Thermidor,

Motor

&

New York

Co.,

40

Wall

Street,

5, N. Y.

Analysis

—
Vilas & Hickey,
Broadway, New York 4, N. Y.

Capital

—

26

Corporation—

Data—Oppenheimer, Neu & Co.,
120 Broadway, New York
5, N. Y.
Also in the
on

bulletin

same

&

—.

Tur¬

Tower

Inc.—Analysis i

is

circular

a

Peter¬

on

Inc.,

Carondelet

140

Orleans

Street, New

12, La.

Murphy

Corporation—Analysis—

Paine, Webber, Jackson & Curtis,
25
Broad
Street, New York 4,
N. Y. Also available is

an analysis
Instruments, Inc., and
TXL Oil Corp. and data on Brook¬

Statham

lyn

Union

Gas,

Diamond

Bobbie

National,

Corporation and

Texas

Brooks,
Polaroid

Gulf Sul¬

phur.
News

Drydock

&

York

New

Shipbuilding and

Bulletin

—

—

Co., 70
5, N. Y.

Federman,
Street,

Pine

Reynolds Metals—Report—Robin¬
& Co., Inc., 42

South Fifteenth
Philadelphia 2, Pa. Also
is a report on Movielab

Street,

available

data

are

Martin Company and Raytheon

Stevens Markets,

S.

R.

Dickson

chovia

Bank

Inc.

&

—

Report

—

Inc., Wa¬
Building, Charlotte
Co.,

2, N. C.
Technical

Operations, Inc.

—

Analysis—Boenning & Co., 1529
Walnut Street, Philadelphia 2, Pa.
Victoreen Instrument Company

—

Analysis—Cruttenden, Podesta &
Co., 209 South La Salle Street,
Chicago 4, 111.

Company.
Electrosolids Corp.

Analysis —
Morgan & Co., 634 South Spring

Video

—

Corporation

—

California Investors,

Bulletin

—

3932 Wilstrre

Susquehanna, Grumman, Address-

Street, Los Angeles 14, Calif.

Boulevard, Los Angeles 5, Calif.

ograph

Fruehauf

Will Ross, Inc.

Beech

Multigraph

and

Ferro.

Hentz &
Nut

Life

Savers

Inc.—Re¬

York

Gamble

available

D. M.

are

reports

Company

Monsanto

on

and

Corning

Finance

Trailer

Co.—Study—H.
Co., 72 Wall Street, New

5, N. Y.

port—Reynolds & Co., 120 Broad¬
way,
New York 5, N. Y. Also

Skogmo

S.

Hegarty & Associates, 19
Street, New York 6. N. Y.
General Dynamics—Memorandum
—William North & Co., 9 Maiden

Co.—Analysis Lane, New York 38, N. Y.
Trust

&

Analysis—The
Big

Bear

Stores

Co.—Analysis—
Company, 51
North

Ohio

High Street,
Boise

Columbus

Cascade

Inc.---Bulletin—

Rector

Harris

Corp.

—

15,

Ohio.

Memoran¬

dum—Daly & Co., First National
Bank Building,
Boise, Idaho.

—

Memorandum

—

Blunt, Ellis & Simmons, 111 West
Monroe Street, Chicago 3, 111.

pany

—

Analysis

—

Loewi & Co.

Incorporated, 225 East Mason St.,
Milwaukee
2, Wis. Also in the
same
bulletin
is
an
analysis of
Therm-O-Disc Inc.

Savings Bank

—

First

Boston

Cor¬

poration, 15 Broad
5, N. Y.

Street,

New

Trading Markets

Harvey Boat Works Inc.—Analysis
R.

Blaha

&

PANTEX MFG.

Company,
North,

Inc., 29-09 Bridge Plaza,
Long Island City 1, N. Y.

chase of blocks of over-the-counter
securities.

YOUR OPPORTUNITY...
For

limited time there

a

available.
needs

TROSTER, SINGER & CO.
Member New York

74
VU

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400




Teletype NY 1-376; 377; 378

If

you

telling the

quoted.

are

are

some

rare

interested—do

years you are

delay. Write

v

VY'YYTelephone

serve

Abraham Strauss & Son

your

Inc.

Y

; w J
EDWIN L. BECK
:
Care of Chronicle, 25 Park
Place, New York
'

your

missing. Prices will be gladly

Be prepared with
complete sets to better

clients. It pays!

ERIE RESISTOR

Chronicle bound sets

not

REctor 2-9570

YY.

.

115

,

7, N. Y
.

;

.

A

j

Wisconsin Power and Light Com¬

York

—Walter

|

Co., 15 William
York 5, N. Y. Also

Film Laboratories.

Eastern Gas & Fuel Associates

Electronics

Lines

Mississippi River Bridge Author¬
ity — Bulletin — Scharff & Jones,

Dit-MCO,

C. Allyn & Co., 122 Sout&La Salle
Street, Chicago 3, 111.

of

Fast

Electronic Die Co.

son

Stonehill

Midland

on
Cities
Peabody and

Cluett

New

available

Newport

Eagle Food Centers—Analysis—A.

analysis

memoranda

are

Mersick Industries,

and
Company, Security
Building, West Bend, Wis.

KVP

an

—

Bulletin—Eppler, Guerin
ner,
Inc., Fidelity Union

Ziegler

available

is

—
Analysis
Weeks, 40 Wall
York 5, N. Y. Also

Robbins.

Hewitt

Inc.,

direct Obliga¬

San

&

New

Merchants

of

Parrish

The

kets

on

Hayden, Stone & Co., 25 Broad
Street, New York 4, N. Y. Also

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

long experience in making primary

data

are

tion Serial Notes—Bulletin—B.

Glass Works.

Our

bulletin

same

Diocese

&

Street,

Also

Beneficial

Over-the-Counter Securities?

du

Homsey & Company, 31
Street, Boston 9, Mass. Also

the

74

Automatic Retailers of America—

Chemical

Blocks of

—

Y.

Sheraton,

Over-the-Counter Index
son

—

memorandum

Solvents—Data

Inc

Company

Hornblower

—G. K. Shields &

Broadway, New York 4, N. Y.

Street,

Martin

Memo¬

Texas.

port—Golkin, Bomback & Co., 25
Street, New York 4, N. Y.

American Photocopy Equipment—
—

National

5,

—

Company,
Building,

Dallas 1, Texas.

port— Thomson

Data

&

Colgate Palmoiive Company—Re¬

dum—Bruns, Nordeman
&
Co.,
115 Broadway, New York 6, N. Y.

Chesbrough-Bond's Inc., Diamond
Bulletin

W., Atlanta 1, Ga. Also avail¬
a

memorandum

Forms,

N.J.
—

a

—

Pine

Stocks

is

Company.

Brewing Co.

randum—Russ

Service,

Corporation—Analy¬
sis—Blair & Co., Incorporated, 20
Broad Street, New York 5, N. Y.

Martin Co., Pittsburgh Plate Glass

—

Star

Lone

Chromalloy

Americana—Analy¬ and Signode Steel Strapping.
sis—Beil & Hough, Inc., 350 First
Continental
Connector
Corpora¬
Ave., North, St. Petersburg, Fla. tion
Analysis — Chesley & Co.,
Allied Paper — Memorandum —
105 South La Salle Street, Chicago
Adams
&
Peck, 120 Broadway, 3, 111. Also available is a memo¬
New York 5, N. Y.
randum on Ennis Business

Also available

Preferred

on

Sud

American Distilling

Lock Joint Pipe

available

in

of Indiana.

Aerovias

—

June

30th—Parker & Weissenborn, Inc.,
Commerce Street, Newark 2,

able is

Market

of

report

a

—

Oil In the New Decade.

Commercial

&

24

New

Japanese

Banks

as

issues which appear interesting—
Courts & Co., 11 Marietta Street,

Ltd.

Japanese Market
maichi

Jersey

figures

Manufactur¬

ing Co. Ltd. and Ebara Manufac¬

turing

New

Comparative

Corporation—

Company

Georgeson & Co
v
Street, New York 5, N.' y
available is "a bulletin
on

Also

son

Francisco

City Bank Stocks —
Mid-year earnings comparison of
Investment Companies—Study of
leading banks—Laird, Bissell &
portfolio changes of 48 companies Meeds, 120 Broadway, New York
E. F. Hutton & Company, 61
5, N. Y.
Broadway, New York 6, N. Y.

maichi

Products

N. Y. Also available is

Draper

San

—

Analysis—Hemphill, Noyes & Co.,
15
Broad
Street, New York 5,

Baxter Laboratories

St.,

Canadian

Limited

Bulletin

Chemical

New

Montgomery
6, Calif.

15

Oils

Rio

Manufacturing

Joy
Wall

Antonio

Mo.

on

Del

-I

Analysis

Shearson, Hammill & Co., 14 Wall
Street, New York 5, N. Y.

Alarho

and Hunt Foods & Industries, Inc.

data

Company—Anal¬

International Telephone and
Tele¬
graph Corporation —

Analysis — Dominion Securities
Corporation, 40 Exchange Place,
New York 5, N. Y.

Oil Companies and 35 Mines.

are

Com¬

ysis—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.

bulletin

Co., 45

Co.

Buildings

Terminal

Bush

Robbins—Dean

&

Electric

and

pany—Analysis—Kalb, Voorhis &
Co., 27 William Street, New York
5, N. Y.

Armstrong Cork and McKesson &
Witter

Gas

Terminal

Bush

—

Exchange

Draper Dobie and Company Ltd.,
Growth and Quality at reasonable 25
Adelaide Street, West, Toronto,
prices—Data on Anchor Hocking, Ont., Canada. Also in the same

chester

Broad
Abbott Laboratories

Wall

—

Edition

1960

—

banks and trust companies of

Clearer

N. Y.

amend¬

Western

comparison of

quarterly

Sugar Allocations—Report—Lam-

and Kirin Breweries.

Carreau

memo¬

a

Stewart Warner Corp.

on

Motor, Mitsui Chemical Industry,

—

on

Safeway Stores,

available is

Y.

law of Japan and analyses of Sony,
Mitsui Bussan, Fuji Electric Man¬

Nippon

randum

Discussion in August

Company,
115
N. Y.
Stocks

N.

6,

administrative

to

Also

Isuzu Motor, Toyo Rayon, Toyota

the

York 6,
Bank

Co., Ltd., 61

reports

and

Kimberly Clark, and Montgomery

Population

of

Letter

Investment

of

Survey

—

York

is

available
new

Johnson and the Pub¬

&

Industry

Ward.

Securities

Molybdenum Corporation of
America and Harvey Hubbell, Inc.
ufacturing,
Explosion

analysis

an

Japanese Stock Market

Stock Exchange Investor, 86 Trin¬

America,

is

of

discussions

are

Truax Traer Coal,

July-August issue of Hitachi Limited.

Investor"

"American

—

Pont

du

Broadway * New

NY

BArclay 7-0130

.

..

.

York 6
Teletype:

Telephone:

...

i

1-2278

|

Volume 192

Number 5974

.

.

The Commercial and
Financial Chronicle

.

(461)
the adverse trend in the
trade
balance. The Government attaches
sanguine hopes to the export drive
initiated by the Prime
Minister,

Stock
;;

By Paul Einzig

important facet in the British economy's situation is
touched upon in Dr, Einzig's summation of what the new Chancellor
of the Exchequer has to face. Included therein are the fears said to
be held about further disinflationary measures, and the small solace
that the probable rise in the price level is not a peculiar British
phenomenon and, thus, may not accentuate the adverse trend in the

with a feeling of

is opening

forebodings on the Lon¬
gloomy
don Stock Exchange;
There has

Ln

decline

all-round

an

in

equities during the second half of
July and an atmosphere of pessi¬
mism
is gaining ground. Even

of equities is on a
counterparts are re¬
luctant to come forward. The de¬
cline is not spectacular but per¬
though selling
small scale,

sistent.

head of

a

spending depart¬
Ministry of Aviation,

ment, the

which is quite different from be¬
ing on the other side of the fence

Chancellor

as

of

the

The

inclusion

of
and

,

everybody expected that the credit
squeeze, the high Bank rate, and

ernment supporters in Parliament.

finance restrictions
between
them would bring the
credit expansion to a halt.
Ac¬

chequer, Mr. Selwyn Lloyd, is not
expected to display much resist¬

cording to one school of thought
the increase does
not represent

In

such

circumstances the

which the

pressure

of

task

but enviable.

Named

against the Gov¬

that hopes of

to

a

program

as

Aug. 1, 1960:

John N.

members

of

the

ted to general

New

York

Stock

announced

has

been

that

admit¬

partnership in the

Wilkinv Chairman of the firm. Until recently Mr. Mueller
Directors; Wallace D. was a Vice-President of Bankers
Johnson,
President; George M. Trust Company, New York City,
Board

of

in

same

location, 29 South La

Street.
firm

ket

heading
the
Special
Industries
Banking Division. He is a direc¬
tor of Texas Butadiene

cal

Several

have

members

been

with

it

of

this

since

its

and have witnessed La

Street

in

Salle

in

panics, de¬

wars,

mar¬

history.

& Chemi¬

Corporation, New

Goliad

Oil

&

York, and
Co., Calgary,

Gas

Canada.

investment business at the iff}: v:

the

pression and the biggest bull

<■

■'

Frank Ginberg

Opens Own Firm

;

Frank Ginberg has announced the
formation
of
Frank
Ginberg &

Smail, one of the Co., Inc., research and trading
original founders of Baker, Walsh specialists in unlisted securities
and special
& Company in
situations, with offices
1921, has over 40
at 25 Broad Street, N. Y.
years of experience in the invest¬
City.
Associates in the firm are Louis
ment
business
and
through the
years has been a director of sev¬ Marinelli, David
Ginberg, Irving
Ittleman and Gerald Markowitz.
eral
corporations,
among
them
Edwin Joseph

to pressure on the part of the
so

Admits Mueller

Salle

The new Chancellor of the Ex¬

straint

Loeb, Rhoades

election

inception

spending policies on the
part of the rank and file of Gov¬

spenders,

with

D. John¬

the

ernment's

ance

associated

President of Baker, Walsh &
Company, has announced their
son,

to face is

increasing
expenditure, is calculated to miti¬
gate the

CHICAGO, 111.—Wallace

been

Baker, Walsh & Company.

-

Baker, Edwin Joseph Small and
Joseph V. Seif, Vice-Presidents;
anything John F. Baker, Secretary; and
George E. Johnston, Treasurer.
On Oct. 19, 1960,
Baker, Walsh
Directors
& Company will celebrate 39
years
Chancellor

new

Exchequer has

Hugh
Knowlton, a
partner
of
both
Mr. Kuhn, Loeb & Co., and Graham B.
Blaine,
a
partner
of
Mr.
Tucker,
Enoch

Powell who resigned with him in
1958 in protest
against

the instalment

be cancelled.

Exchequer

the amount of
bank loans to customers by £100
million during the month ended
July 15 has greatly contributed
towards accentuating the gloom.
It came
as
a
surprise, because
increase m

The

but in many instances
plans have
reached a too advanced stage to

whose job is to restrict
spending.

Thorneycroft

'

...

Mr. Thorneycroft is back
again in the Government. But he
now

the ab¬

had

maintaining consumer demand. It outlined
by the new President, the
Exchange, have
is true, the
atmosphere is now less following
official
appointments Carl M. Mueller
optimistic for capital expenditure, were
made effective

true,
is

note¬

any

as

he

Official Changes

aggressive

changes in the Brit¬
Government
foreshadow
a
hard monetary policy. It is

very

doubtful

businessmen
whether such
ex¬

Farwell, Chapman & Co. for
eight years. Prior thereto

fr the past

membership on the
markets remain
at
its
present Midwest Stock
Exchange and the
level. As for that, the
wage in¬ inclusion of
George M. Baker & The investment
creases which have been
banking firm of
granted Company as part of their re¬
Carl M.
Loeb, Rhoades & Co.,
recently, or which are likely to be vitalized
organization. In keeping 42 Wall
Street, New York City,
granted, will contribute towards with an

Nor do the
ish

are

but

sorbing capacity of the domestic

trade balance.

England—'The holiday

lONDON
season

Macmillan,

hortations will produce
worthy results so long

Almost every

.

Mr.

with

Baker, Walsh

9

re¬

Investors

Telephone

Company,
Corporation, George R. Hariris With
Jacksonville, .j Florida,
Indiana
yearly
interest
on
outstanding hand, pressure from the opposite
Telephone Company, and Western
Peters, Writer Firm
credits which have been added to direction is on the increase. Even
Hugh Knowlton
Graham B. Blaine
(Special to The Financial Chronicle)
Light and Telephone Company.
the accounts on June 30. Accord¬ though the Conservative members
ing to another school of thought of Parliament who have been en¬ Anthony & R. L. Day, were named George M. Baker and John F. DENVER, Colo.—George R. Har¬
Baker were partners until just ris has become associated with
the increase is due to the fact that gaged in agitating for cuts in ex¬ directors
of
Harvey
Aluminum
many
industrial and commercial penditure have now lost the sup¬ (Incorporated), Torrance, Califor¬ recently in George M. Baker & Peters, Writer & Christensen, Inc.,
firms have only just made full use port of Mr. Thorneycroft and Mr. nia, effective Aug. 1.
Company. They are both sons of 724 Seventeenth Street. Mr. Har¬
ris was formerly head of G. R.
of the credit lines granted before
Mr. Knowlton is a director of another of the
Powell, at long last there are in¬
original founders,
Harris &
Co. and prior thereto
the credit squeeze.
dications
that
a
section
of
the International Telephone & Tele¬
Claude F. Baker. Wallace D. John¬
was with Garrett-Bromfield & Co.
However it may be, the increase Labor
Party, too,
is becoming graph Corp., Eastern Air Lines,
has caused
fears
about
further aware of the need for closer con¬ Inc., Pan American Sulphur Co., son, the new President, has been and Cruttenden & Co.
new

credits but merely the half-

disinflationary
authorities.

by

measures

Such

measures

the
may

too

none

public

on

high.

spending are
On the
other

trol of expenditure.

The political
atmosphere has become distinctly
more hostile to extravagance and

Jacksonville

Industria Electrica de Mexico, and
Heritage Petroleum Corporation.
Formerly
Vice-Chairman
of

be taken in
any
case,
because
during the past month over-full
employment increased in Britain.

ment departments. But it is bound

Blaine is

The number

to

Industries and

of

vacant

jobs

now

perceptibly exceeds the number of

unemployed,
is

labor

and

shortage

becoming increasingly acute.

wasteful

take

inefficiency
much

before

the

movement will be able to

produce
perceptible results. Meanwhile the

deficit

budgetary

Nor is the balance of
payments
very satisfactory.
The decline in

time

in Govern¬

continues

to

aggravate the other factors mak¬
ing for inflation.
Foresees

growing

Under the influence of the dan¬

concern.

Altogether the
industry is
satisfactory, as discrimi¬

outlook

in

the

not very
nation against

the Common

motor

British

Market

exports in
countries

is

likely to become increasingly ef¬
fective deterrent to the
purchase
of British
cars.

Sterling Bound
On the

mains

to Remain Firm

other hand

very

firm.

sterling

There

re¬

will

be

no

need for
reinforcing the dis¬
inflationary pressure for the sake
of
defending sterling against a

speculative drive.
other
ne

Apart from

any

reasons, the uncertainty of
election outlook in the United

tales
° 06

is

expected to cause dollars
weak during the next three

months, and sterling is bound to
benefit by it.

is

of

Living Rise

of inflation, the Government

ger

now

inclined

reconsider

to

its

an

office at 58

of freedom.

considered

probable
the period of price stability
come to an end, and that the
months will witness an

investment

Man,

in

and

950,000 Shares

and

head

Common Stock
($1 Par Value)

Price $8 per share

an¬

Wallace, a veteran
in the securities busi¬
member of the

a

office

staff

since

firm's

has
appointed Chicago Heights
manager. Associated with him are
Robert
F.
Shields, Maurice P.
Angland, and Fred J. Ribando,
registered representatives.
All
three
were
formerly
associated
with Reynolds

These securities

& Co.

William Newman

associated
as

A. C.

with

have

the

customers'

working

assignments,
The

publications),

Industry, etc. Enjoys space-age mental chal-

will

with

consider

Commercial

Place, New

&

students.

university
Financial

York 7, N. Y.¬




Except
or

consulting

for

college

Chronicle,

PALM

ing in

M 81,

speculation.

Ventures

Ventures, Inc. is engag¬
securities business from

Incorporated

Prescott, Shepard 4 Co., Inc.

NEWARK, N. J.—Reynolds & Co.
Park

Place

,a

branch office at 60
under

ment of Charles J.

the

R. W. Pressprich 4 Co.

Mitchum, Jones & Templetoh

The Robinson-Humphrey Company, Inc.

Straus, Blosser 4 McDowell

Window, Cohu & Stetson

Jack M. Bass & Company

Bumham and Company

Arthurs, Lestrange 4 Co.

Incorporated

First California
.

Company

W

J. R. Williston & Beane
Courts & Co.

,

Granger and Company

Incorporated

Emanuel, Deetjen & Co.

Hirsch 4 Co.

manage¬

Wiegard.

Hooker & Fay Inc.

.

Pierce, Carrison, Wulbern, Inc.

Stein Bros. & Boyce
Blunt Ellis & Simmons

Cruttenden, Podesta & Co.

Wyatt, Neal & Waggoner

Westheimer and Company

Clark, Landstreet & Kirkpatrick, Inc.

Lentz, Newton & Co.

Bateman, Eichler 4 Co.

Rauscher, Pierce 4 Co., Inc.

Brooke & Co.

C. F. Cassell 4 Co., Inc.

The First Cleveland Corporation

Hallowed, Sulzberger, Jenks, Kirkland & Co.

Grimm & Co.

Howard, Weil, Labouisse, Friedrichs
and

Mason & Lee, Inc.

Varnedoe, Chishotm 4 Co.

J. C. Wheat 4 Co.

Company

Zuckerman, Smith & Co.

Incorporated

Barret, Fitch, North & Co.

Beil 4 Hough, Inc.

Charles H. Eldredge 4 Co.

Incorporated

French 4 Crawford, Inc.

S. D. Lunt 4 Co.

Mullaney, Weils 4 Company

opened

Walston & Co., Inc.
Francis I. duPont & Co.

Company

The Johnson, Lane, Space Corporation

Reynolds Branch
has

R. S. Dickson &

Auchincloss, Parker & Redpath

repre¬

BEACH, Fla.—Florida In¬
a

»

Shearson, Hammill 4 Co.

or¬

offices at 135 Worth Avenue.

affiliation

Box

as a

Allyn and Company

Goodbody 4 Co.

John W. Clarke & Co.

Florida In v.
vestment

and

offered

lnc.rp<r.ted

Bache & Co.

H. Hentz & Co.

Zimmerman,
Blaustein,
Stanley

M.

and

become

in

are

Copies of the Prospectus may be obtainedfrom the undersigned only in those States in which the undersigned may legally offer these securities in compliance with the securities laws of the respective States.

1954,

Security Research Depart¬

Stanley
Kass

Who's Who in America, Who's Who

Capital Corporation

been

ganization

post-doctoral research, writing (top

and

25 Park

July 29, I960

forties; Ph.D., large Eastern university. Nineteen

Commerce

°niy.

has

sentatives.

teaching. Listed

lenge,

firm,

ment and that Ruth

Industrial Relations)

years of

New Issue

J.

Richard

in the

(Economic Theory, Finance, Investments,

to be construed as an
offering of these securities for sale
of such securities. The offering is made only by the Prospectus.

Street, its
and its 18th

appreciable increase in the cost of
With Abraham & Co.
living. This is not a specially
British phenomenon,
so that it Abraham & Co., 120 Broadway,
need
not
necessarily accentuate New York City, members of the
New York Stock Exchange, have
announced that Frank Feinberg
is now associated with the firm

University Professor Available

circumstances

no

any

nounced.

ness

practices in business. On
hand, the Government
is
considering the
adoption of
measures
to prevent the misuse
other

few

offer to buy

managing partner of the Chicago-

strictive

next

an

Illinois,
coast, Robert A. Podesta,

of 30 years

has

of

Illinois

in

second

expected to adopt further meas¬
ures
against monopolies and re¬

that

solicitation

CHICAGO HEIGHTS, 111.—Crut¬
tenden, Podesta & Co. has opened

based

policy favors increased com¬
petition, and the Government is

now

or a

Florida

ficial

is

trustee of Dollar

This advertisement is not and is under

and zirconium.

coast to

It

a

Bank, Mr.
Burlington

Savings Bank of New York.
Harvey Aluminum is a primary
producer of aluminum, titanium,

policy favoring unrestricted free¬
dom.
On the one hand, the of¬

the

director of

a

Cruttenden, Podesta Branch

British automobile
exports, to the
United States is looked
upon with

Cost

Manhattan

Chase

Gas

Mason-Hagan, Inc.

McNeei, Rankin and Budd, Inc.

Nugent 4Igoe

Raffensperger, Hughes 4 Co.
Incerporated

Irving J. Rice 4 Company

Oscar E. Dooly 4 Co.

Incorporated

Taylor, Rogers 4 Tracy, Inc.

Stifel, Nicolaus 4 Company

Sutro Bros. 4 Co.

Incorporated

Willis, Kenny 4 Ayres

Yarnall, Biddle 4 Co.

10

avoid

to

any

in

embarrassment

.

future relations with that country.

Coping With Unstable

;

rupee

ac¬

into India are
practical example.
for imports

counts
a

domestic

in

Payment

International Currencies

-Towards New Foreign Exchange

.

•

.

.

convertibility still remains arduously complex

International currency

hard

restrictions.

other

and

transfer restriction in many cases.

not above lapsing into foreign exchange
The writer suggests what can and should

currencies

country

timely

and of

convertibility in countries with unstable currencies

free

of

derive such risks from
shortages in foreign exchange re¬
serves, perpetual deficits in bal¬
ance of payments or from the po¬
litical instability of the country
or the emergence of governments
which will be subject to inflation¬
They

risks; notes
our currency is
not above suspicion even though it's the world's
key currency} doubts gold devaluation in the next three years, and
currency and price level stability in the years ahead.
coping with currency depreciation and other

be done in

It is not true that
towards

unified

one

a

moving

are

we

of

area

—with foreign
and limited

the

Inter¬

national Mon¬

Fund.

etary
The

latter

certainly

We

portant inter¬

its
Reimann

Guenter

and

regulate political develop¬

ments which

decisive for

more

are

the prospect of monetary stability
and

mere

0;

Cuba—As

At

-

currencies
monetary theories.

convertibility

than

the

of

Pattern

a

doorstep

the

of

changing conditions in

exchange
which

and

of

foreign

inflation
probably end with a
and

devaluation

of

the

other

countries.

investors

mestic

cur¬

ment

before

investors

ing the

new.

Cuba

of the war.

and

fully realiz¬

risks.

currency

domestic
of the

or

danger of inflation, currency de¬
valuation
and
in
particular
of

foreign exchange shortages and
import
restrictions
during
last
year.
Thereupon
many
trading
firms tried to restock their inven¬

credit

to

much

as

enter the

their

use

foreign

possible in order
period of Short¬

as

new

foreign exchange and also

ages of

of devaluation with ample stocks.

Swiss exporters, for instance, sud¬
denly enjoyed a booming export
trade

in

heretofore

attached to

were

areas

convertibility for non-residen¬
for¬

of

tial accounts. New systems of

eign exchange controls are being

organized in countries which used
to belong to areas of convertibility
non-residential

for

watches

and

of

amounts

even

In

accounts.

convertibility

for countries with un¬

currencies.

stable

shipped

watches

depletes

change

reserves.

foreign

all

is

dollar

the

Even

scale

a

no

ex¬

longer

than

still

bill

in

latter

.

.

fer

peso

rencies

into

unstable currencies, are under in¬

flationary
This

and

pressures

to balance of

subject

payment difficulties.

that their foreign ex¬

means

change reserves (gold or foreign
exchange) are shrinking or might
have been depleted. Such coun¬

advisable

not
act

in

But

there

creeping
currency

for the

substitute

a

system of foreign exchange
In Brazil, for instance,

controls.

inflationary

tinue. There may be
of

payments

government

new

con¬

balance

difficulties. But the
relies on import re¬

in

strictions

still

pressures

order

to

its

control

foreign commercial payments.

such

perhaps

feasible to
a

occur

develop¬
sometime

Creeping Inflation Prospects

trade controls

as

not

later years.

tries may use a system of foreign
...

and

because

now

ment will

the

is

inflation.

problem

There

is

of
no

in the world which has

been subject to this process
during the last 50 years. Real
stability of the value of a currency
can
no
longer be measured in
terms of the price of gold, for gold

ceased

As

exporter

monetary

values

currencies

no

real

and

gold

longer exist'.

But

also

a

banks

the

result,
in

and
have

many

granted

Whenever

tions

for

rate.

market

a

transfer

the

on

country has restric¬
of funds,

it

is necessary to make sure in which

type of currency funds

paid. Of

will be
payment in freely

course,

one

instance,
the
dollar.
Most
leading currencies during the last
decade have remained stable more
or

Cuba

and

in

payments

changes.

Delays

have

to

wait

foreign

ex¬

be

only a
few months, but the delays may
become longer and Ultimately the
may

problem will arise in many
who

will

be the

cases:

loser if the peso

should be devalued?

convertible

funds is

always pref¬

erable. But it would be false flatly
to refuse payment in other cate¬

gories of accounts. Such
is

a

be

transferred

at

all

completely blocked, and it is

are

uncertain when
and

a

transfer will be

which

at

rate

of

Monetary Division of the World change. Whenever such funds
Into Four Groups
We

may

currencies

divide
in

the

the

be

system

world

of

of

today

into four groups:

(1) The
—

freely

area

and

stable

(with minor fluctua¬
tions of rates of
exchange).




used for

internal

investments, it is
possible to find a

at

a

funds

or

discount

most

buyer

essary to

may
or

cases

of such
cur¬

dollars—of course,

or

less than

ficial rate of exchange. It

such

ex¬

payments

in

funds who will pay you hard
rency

of hard currencies

convertible

currencies

and

the

is

of¬

nec¬

find out in advance that

transactions

are

legal

so

as

less, with very few exceptions.

Furthermore, it

such

action

an

during

in the forseeable future or

the

three

next

Yet,

years.

private

becbmes

economy

cline.

A

term

funds

held

becomes

which

heavy financial burden

a

requires excessive taxation.
find

will

authorities

The

in¬

it

creasingly difficult to use the re¬
sources
of
the
capital
market

sufficiently.

Such

favorable for the

conditions are
growth of infla¬

tionary forces. This applies espe¬
cially to a situation where the
government seizes a major part
national income to finance

of the

largely unproductive expendi¬
These
financial
require¬

its

tures.

shrink if

will not

ments

lead

to

down¬

a

"business cycle"

ward trend of the

should

temporary

a

shrinkage of the national income
and therefore also to an increased
deficit financing.

for

need

the

dollar

funds

Central

additional
and

Banks

presistent

Her debt structure is

not

time

has lost its domestic

during the last two
(1938-1959) most of the

power

decades
at

a

rate

of

about

2-2 V2%

annually. But this is an average
figure which does not tell the
whole story and it would be un¬
wise

to

sions

draw

from

mechanical

conclu¬

past experience. This

applies

also to the international
exchange value of the dollar.

During the last two decades in¬
flationary pressures were stronger
in

most

United
There

countries
States

were

a

de

?

short"I
foreigners
of

supply

would

dollar

0f

have to

holdings. The

usually

convert

certain portion of their

a

additional

holdings into gold.

Actually,

the

rate

of

interest

differential has made private Eu¬

holdings

ropean

in the U. S.

of

rates

interest

lower

and

of
in
in

rates

encouraged

in

etc.

the

West-Europe
the

S.

London, Frank¬

foreign funds held

Yet,

U.

funds

U.S. have
return flow of funds

a

from New York to
furt

liquid

uninteresting. Higher

have

risen

consider,

ably, but the share of funds held
by
Central
banks
has
greatly
risen, while private foreign dollar
holdings
have
declined.
Total
dollar

short-term
risen

to

holdings

have

amount of $16.8 bil¬
(end of May, 1959) against
$16.1,billion at the end of 1958 and
$15.15 billion at the end of 1957.
an

lion

"net

The

short-term

debtedness"

of

the

liabilities

term

reported

by

foreign

U.

S.

in¬

(short-

to

foreigners
banks minus

S.

U.

short-term liabilities to

foreigners
banks) has in¬

S.

creased during the same periods to

$16.87 billion against $16.70, $13.61
and $12.96 billion.
do

We

consider

not

the

inflow

of-these funds necessarily; as -pfoof
of confidence in the future of the
.

dollar-. The inflow

Western

leading

But

should also consider the

we

is

a

as

a

"secondary reserve" in addition .to

gold by most Central Banks. They
have

interest in the sta¬

vested

a

bility of the U. S. dollar, and they
will cooperate with the U. S. to
avoid

pres¬

the stability of the dollar.

sure

on

The

dollar

could

not

Central

private banks
serve"

or

ments

of

as

for

be

used

Banks
a

"secondary

short

term

doubts

by

also

and

liquid |funds

serious

were

external

undue

any

re¬

invest¬

if

there
the

about

stability of the U. S. dollar in the
immediate

and

forseeable

future.

Future of the Price of Gold
The

price of gold

may

be held

stable

even
if
the
inflationary
spiral should start again. The U. S.
price for gold is a political price

does not necessarily reflect
monetary stability.
The price of gold can be raised
only with the approval of Con¬

and

the

and Congress will not vote
action which would not be

gress

for

an

in the interest of the U. S.

Popular

to

largely due

was

high rates of interest, and also
foreign Cen¬

to the cooperation of

tral banks which have to consider,

that

too,

outside of the
than in the U. S

series

of

devalua¬

is

change of the gold price.
"gold lobby" in Washington
a

received

gold

holdings.

time

will

come

had

be

to

considered during the

next

three

years.

The

U.

S.

has

serves

lion

outflow
at

in

of

reduced
a

gold
U.

from

S.

rate of about

1958.

U.

S.

gold

to slightly more than
billion dollars in 1959. In
1960,
however, the balance of payments
of the U- S. was
expected to re¬
cover

sufficiently to avoid a fur¬
ther outflow of
gold. This estimate
be too
optimistic. It was

may

source

of po¬

of an event
which creates

serious fears of

one-sided dollar

a

devaluation.
Such

possibilities should not be

exaggerated. Most foreign shortterm holdings in the U. S. are
owned

which

Central Banks
in avoiding

by

interested

are

cial

dollar

crisis

as

much

a

spe¬

as

they

their
extraor¬
dinary foreign political event (for
instance, |in the Far East) may
defend the stability of

must
own

currencies. Only an

shake: the! confidence in the

dollar!

foreign fund-holders seri-J
ously. In such a case, the U. S"
authorities would act swiftly.
among

generally known that
is not obligated!
to sell gold to (or buy gold from,
foreign central banks or the Inter¬
national Monetary Fund, There is
an
agreement between the U.■ oj
Treasury and the I. M. F. whereby
It

not

is

the U. S. Treasury

the

will

former

and

buy

set,

Buf
m*aJ
special acj

gold
at
the
official rate.
agreements with the I. M. F.

without

a

Congress.
Long Era of World
or

Monetary

...

?

prominent monetary P°
makers especially in leadm

Some

icy

international financial

claim that

we

long

of

are

now

institution
entering <

currency
without further creeping
era

re¬

one

a

development

a

After

amounted

large-

lor" may occur in case
or

tion

losses

a

tential danger. A "run on the dol-

the

$2.2 bil¬

gold

fact

foreign short-term

funds also creates

the

gold price will be raised. But as
explained above, it is most un¬
likely that this will be seriously

and not
very

supported by

scale inflow of

Stability

when

The

that the U. S. balance of payments

without real influence.
The

interest

payments
of
for dollar,

are

for

The

buying

by

tr

absorb

reported by U.

Therefore the U. S. will have a

than

necessarily mean that for
eign Central banks would have

less, with variations
justify a change Of
foreign exchange rates.
or

The dollar

rather

major outflow

be suspended

do

held'
c i

increase

of

more

was

by foreign banks etc. in the U
would

one

too
past"

heavy, the "dead hand of the

tn
i,-*

also expect eri'
that the private dollar
funds

against

which

be closer
billion
doll

two

sentiment is against inflation and

refusal

justified only if such accounts

cannot

made
A

not expect

Id
Wf

probably

'than

creeping inflation has reduced
the buying power of all currencies

Yet

—

credits to
for

do

We

be the regulator of

to

will

three

increase their dollar

same

Foreign

not

has

icit

exchange value in rela¬
tion to the U. S. dollar as before.

the

?i

billion

billion in 1960. Actual

the 1960 balance of
payments

would

it exists fact that the U. S. dollar
perhaps world-currency. It is used

exchange as
disintegrate,
manifold
regional
will

now

the assumption
that V

on

balance of payments
deficit won a!
shrink from $3 to $3.5

including the U. K., would also
change the gold content of their
currencies accordingly and see to
it that their currencies would have

countries
tral banks. If the dollar fails to
during the next decade, contrary
play its role as the world's key to the development during the last
currency, then the entire system two decades.

usual

longer freely trans¬
funds into foreign cur¬

gold or increase the price
most foreign countries,

gold,

secondary reserve by foreign cen¬ other

systems,
In many countries free convert¬
with emergency solutions for in¬
ibility has been introduced despite
the fact that these countries have dividual areas and countries. It is

no

abroad.

foreign
cases

the

of

based

.

foreign

to

to his bank, but the

pesos
can

before.

ever

granted,

believe that the above

not

inflationary
problem.
heavier, ab¬
solutely and relatively, than in
other leading Western countries.
The same applies to the needier
financing an especially heavy de¬
be restricted
more severely fense
system
on
a
world-Wide
than during the last war. But even scale
(including foreign economic
Swiss bankers have become aware
aid).
Consequently, inflationary
of the fact. There is no substitute forces will
probably be as strong,
for the dollar, which is used as a or
stronger, in the U. S. than in

The exchange value of a cur¬
At the same time there exists a
they
free
foreign ' exchange
market rency may be measured in terms
export
of gold or of its buying power or
credits. The importer in Cuba ful¬ where* foreign * 'exchange " can*, be
in terms of another key
filled his obligation by paying the freely bought or sold at the free
currency,

Cuba

do

experiences will recur. This time,
the dollar will be as much under

of international finance and

Towards Free Convertibility

new

larger

which

on

of the Sterling bloc, feel the need to act, perhaps by
may
also make their currencies refusing to sell gold, has been a
freely convertible. But this will major topic in the foreign finan¬
not happen this year and may be
cial world. We may be sure that
delayed further. Yet, in Europe this danger will not be acute in
convertibility has progressed more the immediate future. Of course,
than in Latin-America or South- in case of new armed conflicts,
East Asia. In Africa, new areas of
foreign accounts
will again-be
controls arise for countries which blocked and transfers will again

develop¬

traders,

are

importers

and

funds

of

...

do¬

traders became fully aware

tories

con¬

especially

be¬

traders

new

foreign

abroad

develop

Usually

and

of the

aware

free

may

transfer

or

further enlarge¬
of this area
especially

exists

situations may

come

to

in¬

.

Similar

In

greatly

has

Latin America, free

rency.

in

and

currency

controls

will

drastic

rapidly
country

a

area

an

S.,

stable

a

convertible

becomes

now

have

to

used

freely

ch

U.

in Cuba, one may observe

which

of

record

a

coun¬

above suspicion of a convertibility
Europe, where most countries crisis. The cumulative effect of a
have introduced free convertibil¬ balance of payments deficit of the
ity for external accounts, but not U. S. and a run-down of foreign
yet free convertibility for resi¬ exchange
reserves
to
a
level
dential accounts. Such countries, where the U. S. Government will

its role. But it
cannot

with

of

in

may

functions

tries

expect

may

ment

or-

ganization
which

of free

area

creased since the end

strong and im1

enlarge

that the

true

convertibility

a

national

is

It

has

become

exchange controls
convertibility.

currencies

hard

Even

introduce foreign
(4) The area of the East bloctotalitarian controls of foreign ex¬ exchange controls or restrictions
on
foreign payments and trans¬
change and foreign trade.
fers.
This will happen,
for in¬
The borderlines between these
stance, in case of war or other
groups are not a fixed frontier but
emergency situations which may
steadily shifting.
provoke a sudden flight of capital

and thereafter
of

may

vertibility

last world war,

I

Thursday, August 4, I960

1959 to $2

wards the dollar.

pressures
and
excessive cannot'ighore the following facts:
(2) Area of unstable currencies, ary
Wherever the debt structure of
but with freedom of exchange.
spending of foreign exchange re¬
the government and also of the
serves.
(3) The area of soft currencies

Conference

the end of the

French Franc and the D-Maik to¬

.

freely convertible currencies. This
was the aim of the Bretton Woods
at

traders
may
get
a
warning
about pending

Foreign

Indicative of this, Mr. Reimann avers, is the phenomenon

direction.

key currencies
British Pound, the

foreign

terms of

vertibility.

in the opposite

and uncertain despite post World War IPs progress

;

of

including the

inflationary
pressures
as
other
It is quite possible that coun¬ Western key currencies.
If the U. S. should decide again
tries with free convertibility will
reintroduce
restrictions on con¬ to devalue the U. S. dollar in

New York City

;

;

41.

tions

...

Controls

By Guenter Reimann,* Editor. International Reports, Inc.

,«

Financial Chronicle

The Commercial and

(462)

30

we

inflatio

of creeping
now enter a

years
may

stabilk
s

im}|J

pen

,

of real monetary s
bility.
When
I
discussed tn
30 years of creeping inflation
i
prospect with the top execut
of 30

of

an

years

international

stitution who is
50 years

a

of world

monetary
believer

firm

monetary staD
such a pio*

ity.I pointed out that
pect

could

become

feasible o

Number 5974

192

Volume

.

,

The Commercial

.

which are is often done
fulfilled:
the Importer
nurppmprit
rniintrioc

world conditions

jpr

"?UkSy

jlOt 11

.

to be

...

and

Financial Chronicle

11

in order to finanr*

of the subsidiary
«*y in
in
like" Brazil or Areen
T
.
&
lilm

East-West

(463)

was

PUBLIC UTILITY
SECURITIES

tv

generated internally and $19.8

million by sale of bonds, deben¬
agreement countries
tures and stock.
will create an atmosphere tina or
Despite the fact that a substan¬
jce and which will make it
arr<
Ifoeace
you arrange
with the foreign bank
tial proportion of electric
require¬
cases, even
even with
ossible to cut armaments ex- and, m many
ma„y caseSi
®Uh "the
thfi
BY OWEN ELY
ments must now be obtained from
Lnditure drastically.
National Bank of the foreign
P
steam, the company's residential
I2) Stable governments which
country, as follows: You make
rates continue to rank
among the
J. Resist the pressure of domestic available a certain amount of dollowest in the country, averaging
roups i"' £orces see^lngit? mage
Iars t0 the foreign bank which, in
only 1.240 per kwh or less than
Southern Nevada Power Company
turn, will provide a corresponding
m onetary policies subject to pollhalf the national average. ReflectJsand to use inflationary means amount of foreign currency fundi
Southern Nevada Power is a small scribed
by the company as fol¬ ing heavy air conditioning and
Zpolitical purposes.
to a designated party for a certain
(revenues $9 million) but rapid¬ lows: "The 53
,j) Restrictions on monopolies period of time. At the end of the
years that have heating loads, annual residential
w^^nAnr»linc
\uViinV*
QCfrpprl fi
ly
growing utility serving elec¬ passed since our company
including
state monopolies which agreed time the foreign local cur'
brought usage is now about 10,782 kwh or
some
three
tricity to Las Vegas and neighbor¬ electric
times
the
national
ise price and costs with the ef- rency funds will be paid back to
power to the little town
ing
cities
in
Nevada.
average. The company has been
Revenues are of tents and shacks that was
Lrt of a general rise of cost and the bank abroad and the bank will
early

An

,n

'

..

.

-

-

levels.

price

return

:

,

.

the

Hons

hopeful

are

though we

and

may

,

•

for

the

xur

now

to

for

Of

you.

be

local

tue

interest

«

x

_

will

credit abroad and

any

-i

dollars

there

unlikely that such condiwill
exist in our time, Purges

„ is

+U^

r\

iocai

interest

currency

you may not get
the dollars
you

nearly six times

large

as

as

in 1949 and net income about
four
times as great. While share earn¬

ings have been somewhat irregu¬
they have
shown
a

lar

good
another major war gave to the
trend
with an
bank for a fixed time. growth
increase
will be avoided. It should, how¬
from $1.23 in 1956 to
$1.82 in 1959
ever be noted that the latest war
and an estimated
Currency Futures Offer Little
$2.10 for 1960.
scare has resulted in new move¬
Protection
Las Vegas, the largest
city in
ments of flight capital from po¬
It often is not
possible to get Nevada, has a population of 53,litical risk
areas.
These funds protection
000
and
is
the
against
foreign curgateway to the
went mainly to two countries
qwitzerland" and the U. S. Areas rency rifks by selling foreign ex- Hoover Dam and the Lake Mead
recreation areas. The famed Las
of accelerated and even run-away
£j?an^e,fu}ures ftthe market rate, 'Vegas
Strip with its multi-million
currency
inflation
may
widen T.he llst
re§ular markets in foraeain One of the most immediate ?.lgl?
exchange futures is quite dollar resort hotels and top show
attractions, and the Nevada Test
neighbor countries of the U. S.— limited. Possibilities for the forSite
where atomic bombs have
Cuba, is now starting an inflation
}e
Purchase ^of foreign been
currency funds for which there
fired, are leading tourist at¬
which
may
reach a run-away is no
~
1
regular market should be tractions. A new six million dollar
stage quite soon. Other countries checked
in each
convention

that

believe

currencies are: Bo¬
Brazil, Cuba, Egypt, Indo¬

with unstable

Philippines,
Guinea.

Israel,

nesia,

Canada, New

Syria,

protect

you

against creeping inflation
gold. Those who followed such advice during the last
bv hoarding

have paid dearly for it.
Hoarding of gold is expensive. It
costs at least 1% annually In addition gu
uiuui
gold
u does not
earn any re-

30 years

.

per annum

loss

a

5%

of

rate

At the

,

interest

50 % or more
after

01

would have to be calculated
10

10% for
hoarding charges. This would eat
up the benefit from
a
potential
increase in the gold price.
Long term

investors

seek

may

or

to find out which

and to

discuss the possibility
forward deal.

a

currency risks by selling
foreign exchange futures is not
possible you should investigate
possibilities to borrow local funds
...

...

,

,

m the currency which may be de-

va u

a

'

appreciate

suapl £u!n^s f1}

,use

" case 01 devaluation

of £hflocal
1°oal
currency. Costs of
credits may be exces-

such
,

.

>

,

,

,

.,

„

,

tamly has to be considered.

another

plus

years

necessary

case.

it is advisable

against

foolish to seek pro¬

tection

turn.

case,

In urgent cases where
protection

yourself

against currency depreciation?
It would be

a

foreign exchange firm is special¬
ized in dealings in those curren¬
of

Depreciation
can

such

cies

Hedging Against Currency

How

individual

In

even

Futures

The

following is
which

list of

regular

cur¬
mar¬

ket in futures exists in New York.

protection by making investments
in

values

which

sufficiently

in

will

to

order

which appear

be

to

stable

is

justifi¬
only if there is an immediate
danger of currency devaluation or
able

of

But in such

of funds

a

too

much.

it is also feas¬

case

buying

or

futures.

selling foreign exchange
These

fluctuate only

currencies

to

a

small

but these fluctuations
fect net returns for

Most

countries

are

the International
which
her

of

Monetary Fund

authorizes

the

members

fluctuations

foreign exchange rate of

currencies of
ahove and below

1V2 %"

of

or;

%%

rommercial transactions

abrLd
sirlS

tn

1

exist. One

Pfoce.

One

may

have

of

the

the

area's

were

still main¬

purchased

nues

this

show

a

Hoover

the

rest, mostly

from

Dam.

System capability today is 220,kw
(including 100,000
kw

000

which

can

be drawn from Hoover

expected to cost about $9.5 million
and

joyed
sites.

the

bathing beaches, boat
and camping trailer
Important electro-chemical

and electro

prises

are

-

metallurgical enter¬

located

in

Henderson,

few miles from Las Vegas,
including Stauffer Chemical, Ti¬
a

12

earnings

aided

Prance

Sweden

West Germany

Switzerland

to

Austria

materials, water, fuel, power,
proximity
the huge Southern California

market to attract other industries.
The

Trading

Irregular
Australia

Markets

Uruguay
Venezuela

quote
subject

A final observation: I may

currencies

ten

an

ended

first

cold
at

which

inflationary

are

process

f;

to

make

is scheduled

for operation

in

July 1961, raising system capabil¬
ity

to

290,000

has

now

The

kw.

ample

company

facilities

to

take

of its needs, hence later con¬

care

struction

can

be

limited

to

new

units every three or four years.
The company did little public

of

next

In

the

decade
nominal

construction

and

assumed
started

the first generating unit, it be¬

to sell securities.

necessary

During

the

past

million

has

been

struction,

of

six years $30.4
spent for con¬
which $10.6 million

earlier

part

dividend
as

the

of

This

announcement

offer

to

sell

or a

is under

no

solicitation of

owners

currency

risk

ought

a case

be

to

may be done by
foreign currency for

dpii,

ery at

a

arrange

lower rate. One
a

may

"Swap" deal. This




were

offer

Currencies Without

A

Market in

Foreign

in capital gains. In the
six years, with the stock in

the hands of the
of

public, about 55%
been paid out,
present policy is to pay out

earnings

and

have

about 60%.
The stock has been quoted over-

on

a

recently around 42-5. Us¬
price of 43 the yield, based

the current indicated dividend

rate

of $1.10, is 2.6%. The priceearnings ratio, based on the re¬
cent $2 earnings, would be 21.5.

The latter would compare with an

industry average around

to

buy

any

as

an

of these securities.

The offer is made only by the Prospectus which is available
only
in such States where these securities may be
lawfully sold.

corporation

3,080 Units

Exchange Futures:

$308,000 8% Subordinated Convertible Debentures, Due August 1,1970

Bolivia

Israel

Ceylon

Korea

Cuba

Philippines

India

J|?'sia

154,000 Shares Common Stock, $.10 par value

Indones a

46,200 Common Stock Purchase Warrants

special case is Canada where
substantial drop of the rate of

a
a

5% to currently about
ratet may decline below

2%,

Offered in Units

only of

$100 of Debentures
50 Shares of Common Stock

15 Common Stock Purchase Warrants
at

$200 Per Unit

dian dollar futures.

ROSS, LYON 8c CO., INC.

GLOBUS, INC.

E. W. Saunders Opens
BOZEMAN,

Mont.

—

Saunders is engaging

E. Wilbur

in a secuii-

Harold c. Shore &co.
"

.

ties

business

South Tracy.

from

offices at 509

were
more

interested

past

circumstances to be considered
an

the past

payments

which

exchange futures.

and
good

least

tion and none of them has a mar¬

Ten Unstable

a

year.

will probably result in devaluaket in foreign

to

(having been

quarter by ab¬

weather)

continue

showing

30th

expected

are

gain of 10%
the

April

$2 per share. Reve¬

year

normally
should

high and for

new

Hong Kong

Denmark

to

growth of Las Vegas is de-

were

in

came

Corp. of America,

a

months

on

Metals

rising

through August
Earnings for calen¬
dar
I960 'are
estimated
by the
this year of a third unit at Clark management at $2.10 or better, a
Station; this 70,000 kw addition is gain of 15%.
Dam) compared with 1959 system
peak demand of 185,000 kw.
Construction
was
begun early

economy rests. Last year the Lake

vis¬

reached

the

Mead Recreational Area

was

1960

In 1959 the company gen¬
erated two-thirds of its needs and

tained.

Moreover, Nevada has the needed

to

funds

selbinatei?' Tllis
al„b°

sections

which

Lake

t0 f,inance an importer
Tr" addrcss by Mr. Raimana before
0ne S own foreign sub- the l„3,j,ute of International Trade,
111 °rc^er to enable imports; University of Illinois, Monticello, 111.

L de foreign currency
th«SUcl1 a PurP°se- In such
p,

on

of

only in its industrial rates).
management believes that a
increase
application to the
state
commission
at
that time

favorable tax laws and

the
par. Of
,,e/2/crate may be for more than COUrse, it is possible to seek protection against foreign exchange
Other possibilities of
protection risks in Canadian dollars because
against
foreign exchange risks in an active market exists in Canaof

other

because

The

raw

parity. There are .exChange is feasible. After having
reached a premium rate of over

Panty and where fluctuations

are

foundation

1961

rate

Mexico

mem-

exceptions, especially in the case
hf
Canada, which has no fixed

revenue

higher.
search

necessary for the
request a rate in¬

to

clause

Italy

may

greatly ef¬

gambling
tempo¬

the

loss might go even
However, tourism, indus¬
try, the military and nuclear re¬
rary

prove

in

crease

than

gas.

fuel costs and larger plant invest¬
ment
(the company has a fuel

Canada

extent

large industry.

if

Rapid
in¬
creases in
demand, and low pre¬
cipitation in the Colorado River
water shed (causing the level of

Sterling

should be done in all foreign com¬
mercial transactions
where pay¬

foreign currencies which are relatively stable, for
instance
in
sterling, should be covered by

derives about 7%

and

Dam.

rather

inter-connections

from resort hotels

outlawed

Hoover

may

Belgium

Malaya

in

be

tained all its power

from

home

electricity and

company

ing

Union of South Africa

transactions

casinos

should

ob¬
requirements

company

control

Markets

Norway

Even

and

the

Holland

Active

Regular

Brazil

expected
risks exist.

revenues

1953

both

It

the world."
Before

all-electric

an

use

counter

Argentina

foreign currencies are
and
foreign exchange

The company

of its

and

lighting in

the present management

Colombia

in

the

spectacular

cheaper for the customer to have

and American Potash & Chemical.

ible to hedge by using the market

ments

Commission,

opera¬

the

development at the former Basic
Magnesium plant.

tanium

Futures —1960

in

foreign exchange futures. This

Other
are

most

commercial

500 kwh—at which rate it is

over

financing through 1953, control
being closely held. In 1954, when

which

restrictions

currency
limit the use

Trading in Foreign Exchange

compen¬

more

than the old currencies

area

Dam hydro station, and industrial

only

appreciate

sate for any currency devaluation.
A flight movement into currencies

Energy

cities.

the

landings,

a

a

in

ited by 3.3 million people who en¬

Trading in Foreign Exchange

rencies for

convention

the

intensive

promoting the

Hoover

year,

tions

called

in

of heat pumps and the bottom
block in its residential rate sched¬
ule is only 6V2 mills for usages

Atomic

hall
was
completed
and Las Vegas has al¬
ready become one of the leading

last

day a cosmopolitan community
illuminated by w.hat has been

successful

very
use

Mead to drop) forced it to
purchase substantial blocks
of
would be justified and would be
steam-generated power in 1954-5.
Nevada is
The company's first steam gen¬ favorably considered.
considered a "fair value" state.
erating unit was placed in opera¬
Per
tion early in 1956 and a second
share
earnings last year
was added
in 1957, making the were $1.82 compared with $1.54 in
the previous year, a gain of 19%.
company virtually independent of
outside sources of power, though Net income in the first quarter of

^

livia,

Las Vegas, have produced aston¬
ishing changes. What was then a
town at the end of a railroad,
lighted by smoky oil lamps, is to¬

New Issue

August 4, 1960

18.

1

12

Smith

also

have

Office
*

f

BANKS AND BANKERS
Branches

New Offices, etc.

•

a

York,

has

York

State

the

and

for

to

a branch
Park, Nas¬

Massapequa
County.

Earlier

this

for

the

month

branches

in

*

Ian

its

$

Dirk

Nassau

L.

the

de

*

Plainview.

Maatschappij,
*

office

active

Leur

N.

retired

has

Handel-

V.,

New

service

in

However, as an Advisor to the
J. Cunningham, Officer
charge of the Woodside office, agents, he remains connected with

of

Manufacturers Trust Co., New

York, has been appointed

the

As¬

an

Mr.

P.

sistant Vice-President of the

Wouda, Inspector, has
temporarily been acting as Agent,

it

and

announced today by

was

C.

Flanigan,

Chairman

bank,
Horace
of
the

been

Board.

Cunningham
began
his
banking career in 1930 and joined
staff

of

Manufacturers

assigned
he

of

various

to

banking

Manufacturers

appointed

was

now,

Assistant

as

Robert

Secretaries

Vice

announced

#,/

its

118th

63.

the

B.

the

the

election
time

same

named

with

and

dent

on

the

and

has

Mr.

M.

Sarosy. will
in charge.
■

Chemical

Co.,

Bank

New

Harold

of

the

New

Comfort

Committee

its

to

the

Helm

Comfort

Dollar
of

Trustee

of

of

appointed

nounced

by
Henry

are:

it

Mr.

H.

Cash

sistant

Loans and

associated

with

the

*

& due

barks

ff

common

S.

of

as

UNION

8339,129,374

$371,010,071

300,846,8.90

334.776,132

70,099,169

95,532,592

secu¬

discts.

65,056,415

75,155,533

183,584,773

179.796,387

7,541,490

#

*

dent

Jersey
N.

Bank

j.,

Vice-Chairman
♦

Assistant

an

&

were

of

the

Trust Co.,
Herbert G.

has

dustrial

held
Bank

Irving

York.

posts
of

Trust
'

with

New

the

York

Company,

Mellon Bank in

1946, at the time
Trust and
and

National

Bank

In¬

and

New

ficer.

In

June

of

have

Assistant

*

Deitz, and

George L.

been

elected

Directors of the Commercial Bank
of
North
America,
New
York,

'




Trust

Company. In 1941, he was ap¬
pointed
an
Assistant
Secretary
and in
1954, an Investment Of¬

in

Livingston,

an¬

Mellon

named
*

the,bank

of the merger of Union

■

*

Herbert J.

of

Mr. Jeffery started his bank¬
ing career with The Union Trust
Company of Pittsburgh. He joined

ap¬

Vice-Presi¬

Manager of The Credit
Department of The Gotham Bank,
New York,
George J. Gross, Presi¬
dent, announced Aug. 1.
The New Assistant Vice-Presi¬

the

into

title

Bank

of
and

the

of

ing

$1,353,000
shares

of

value

par

$10 each.
of

v

the
Lu

bank's
Van

William

L.

appointed
dents in

1957, he was
Vice-President

Trust

Leer

Fouse

Department,
Brown, Jr. and
have

Assistant

the

government's actions in tak¬
over
U. S. enterprises. It

might be comforting to chalk off
the Cuban situation as an isolated

the

Harris

Bank,

Chicago

Trust

Chicago,

National

111.

Bank,

are

known

the

as

Bank

proposed

ments

Merger Act.
and

merger

agree¬

given in the July 21st

were

issue of the Chronicle page 278.
In
announcing
this

elsewhere

Castroism

veloped

there

also

been

Vice-Presi¬

Trust Department.

underde¬

of Asia and Africa

areas

U.

sub¬

has

business

S.

investment.

is

Latin

in

other

in

and

America

stantial

The

Moreover,

disturbing evidence that

American business has real public

in highly

problems even

opinion

industrialized

which

countries

approval,
have close political, economic and
Zwiener, President of
Harris Bank, indicated that cultural ties with the United
physical merger of the two States.

Kenneth V.
the
the

banks
Oct.

will

24

be

consummated

.-j:

Charles

on

originally scheduled.

as

G.

Scribner

named

an

Public

Bank,

has

Assistant

been

Cashier

Detroit,

by

Mich.,

is announced by Joseph
helle, President.
*

Eliot

G.

Marine

it

Ver-

of

Exchange

Wis.

Aug. 1

the

Bank,

announced

that

Officer.

stock

a

National
has

i:

Bank,

stock

Iowa

its

The

First

City,

Iowa,

common

capital

$200,000 to $400,000,
July 20.
(Number of

V

Board

Bank of

Calif,

in

if

of

*

Opinion

appointed

Assistant

Bank's

Sacramento

Adams,

of

The

Robert

Manager

at

A.

the

Research

'!'

U.

S.

favored

it.

In

announced by Frank L.

King,

Briggs succeeds Robert V.
who has' resigned to enter
field

of

♦

The

been

*

This

surprisingly strong public
contrasts

of

announced. Mr.

German

along

with

ernments,

Harry

other

Charles

W.

formerly

chief

ceeds

Randall

reasons

Jameson,

accountant,
as

suc¬

Assistant to

Bank

also

announced

the

appointments of Mr. A. MacLean
as
Comptroller, and Mr. C. E.
Ritchie as Chief Accountant. Mr.
visor's

gov¬

encourag¬

by

more U. S,

those

had

opposing
business.

been

denartment

the
Both

in

the

in

Vancouver

super¬

and Mr. Ritchie has been an As¬
sistant Manager in Toronto.

77%

That

the

and

fear

Germans

that

emphasized

increasing

foreign

competition would hurt their do¬
mestic industries in home
markets,
that

foreign

capital

might
sec¬

tors of their national economies.

Strong Is Protectionist

subsidiaries in their j

The

and
able

strong

potential

criminatory
ion

support

measures.

Research

for

dis¬

The Opin¬

Corporation

survey

That 91%

to

of

forcing

invest

a

the

French would

foreign

major

companies

part

of

their

profits made in France in
govern¬
ment

lar

housing

public

pronounced form, in
next-door neighbor

serious

caused

Canadian

passing into U. S. hands.

economy

is

the

of

control

about

This

industries has
public
concern

Canadian

major

public opinion problem
the issue

a

of

real

magnitude—for

of

"U.

S.

has

domination"

economic

been

aired, often acrimoni¬
ously, in the Canadian press for
the
past
decade; studied by a
Royal
Commission and several
Canada-U. S. business groups; de¬
bated

in

Parliament; featured in

Canadian election

campaigns, and

invoked in official representations

the Canadian

by

Government to

the U. S. Government.
All

these

multiplied

examples

abundant

business

could. be
times, for there

many

evidence

has

U.

that

substantial

S.

public

opinion problems throughout its
foreign
operating
areas.
These
problems fall into at least five
general categories:
The

1.

and

panies

fear that

general

aggressive

American

large
com¬

and even¬
tually will take over domestic in¬
displacing

are

dustries.
2.

The

panies

suspicion that U. S. com¬
exploiting the econ¬

are

of

omies
benefit

other

of

countries

stockholders,

for

the

management

American

rather than for

local employees and citizens.
3.
The feeling that U. S. com¬

panies
for

exert

influence

political

preserving the status quo, and

thereby
mands

popular

frustrate
for

economic

and

de-

j

social

j

progress.
4.

The

resentment

U.

pressure

especially in

S.

about high-

business

forms of con¬
sales pro¬

some

advertising

methods,

and

motion, which foreigners fear is
vulgarizing
popular
tastes and,
"Americanizing" their traditional
cultures.

widespread criticism that I
S. companies and their
personnel do not assimilate well
5. The

U.

many

with

foreign communities — that
Americans
sent abroad do j

the

or

appreciate

toj

aloof from the local
Is

U.

S.

Business

tively
Some

localj

do not know or try
language, and remain

With

Effec¬
problems

Dealing

These

American

j

community.

companies arei

doing a good job j
dealing with public °P*n*onr>Vi
their foreign operating areas. bu j
most companies appear to be neg¬
lecting the public opinion situa-i
tion or merely paying lip servi

obviously

showed:

favor

owned

largest trading partner. Siz¬
American investment in

Underlying fears

germinating

half

U.

more

even

learn

are

least

apprehension and bias
S. business exists,

same

concerning

customs,

business

at

be

not understand

Ameri¬

and

by local capital.

Sentiment in Such Countries?
about

French

foreign

countries

most

How

the

of

of the Germans would insist

that

sumer

French

and

73%

expressed in the

entry of

can

the President.

MacLean

which,

European

actively

are

survey

Randall had

the Bank, Mr. F. W. Nicks.

The

pie French

governments

ultimately control important

Mr.

on

and

official policies of

and

Assistant to the President of

Mr.

sharply with

*

appointment

Mr.

such

opposed

was

by 49% and only 19% supported it.

and

business.

Randall to the post of an Assistant
General Manager of the Bank of
Nova Scotia, Toronto, Canada has
been

to

only 24%

Germany

American investment

Chairman of the Board.

another

companies

^

iji

tising and Publicity for California
Bank,
Los
Angeles, California,

Mr.

by

year

Corporation,

That 58% of the French opposed

stand the

Daly

Ger¬

office, Edwin ing further American investment.
President, announced.
But it is not difficult to under¬

appointment of George C.
Briggs, Jr. to Director of Adver¬

was

and

last

disclosed the following:

the

Directors

California, San Francisco,

has

France

completed

opposition

*

Mullin

E.

attitudes toward Ameri¬

business

many,

outstanding—16,000 shares,

value $25).

The

of public

French

out of their countries.

European public opinion. A survey

locate plants in France;

from

effective

among

concern

%

dividend,

increased

European Com¬

serious

encouraging
•Jf

By

erating

Vice-President and Trust

as

the

Market, for example, is gen¬

mon

can

President

National

into

the

companies pay a special
profits or dividends taken

foreign

is

*

*

Fitch,

F.

The tremendous influx of U. S.
business

%

of

of the Germans would make

66%

in

Board

Federal law

71%

That

Canada—our

an unavoidable rev¬
explosion.
But there
abundant signs of
incipient

where

new

•

olutionary

Chicago, 111. has received the ap¬
of
the
Federal
Reserve
under the

requirement.

same

development,
*

*

merger

popular devil to strengthen its sup¬
port among the Cuban people. And
Cuban public,showing little under¬
standing or appreciation of Amer¬
ican business, has largely applauded

Steubenville,

the

of

of

and

153,500

stock

common

of the power

The

nounced.

and

dent

stock

close

effected

.

George W. Mills, Jr. has been
pointed

divided

6,790,084

#

Vice-Presidents

Paterson,

Helm, Chairman.

«

capital

in

was

was

National

Company

TRUST

Wenzel and Everett B. Muh.
The election of Dr. Adolf W. Jann
*
*
*
and Dr. Oskar Loehr to the Ad¬
Arch
S.
Jeffery has been ap¬
visory
Board
on
International
pointed
Vice-President
in
the
Business of Chemical Bank New
Trust Department of Mellon Na¬
York Trust Company, New
York
tional Bank and Trust
Company,
was
announced
by
Harold
H.
Pittsburgh, Pa., Frank R. Denton,
; j*

First

with

*

■

from

Govt,

New

shareholders

Dec. 31,'59

—

Elected

*

The

charter

the

National

June 30/60

Undivided prof—

bank's

under

$50,000
the

of

as

July 15. It

Fidel Castro is a

$1,-

CINCINNATI, OHIO

rity holdings—

Division.
*

and

Conn.,

effective

THIRD

resources—

Deposits

Kennedy and Harry J.
Jr.
Messrs.
Robinson,
Gerke,
Major and Van Doren, former As¬

are

effective

shares

FIFTH

William

U.

stock of

of

Arthur Saltzstein joined the Bank

Bank

Essex

11,

COMPANY,

Managers, are with the
bank's Metropolitan Division.
Messrs.
Kennedy and Robinson

made

stock

common

common

business

par

THE

Total

Company
Steubenville,

*

its

ft

an¬

Major, Jr., R. Bergen Van Doren,

National

of

July
July 18.

They
George
L.

tax

with

Milwaukee,

the

dated

Helm.

Gerke.

I.,

L.

$100,000, which has gone
voluntary liquidation by a

were

also

was

Shirley,

National

absorbed

resolution

City

with

Trust

and

Steubenville,

Y.,

stock of

York.

Five Assistant Secretaries

at

Bank, Essex, Conn., with

the

the

N.

Company, Hartford,

into

is

Savings Bank

New

also

has

announced.

Mr.

bank

their own self-interest.

of the problem in terms of even

and importance

*

*

Hartford

Trust

Stanley T. Crossland to its
Advisory Board on International
Business,
Chairman
Harold
H.

it

painful reminder
of public opinion 10
damage U. S. business interests
475,000 and the Peoples Bank of abroad.
The Castro regime has
Tiltonsville,
Tiltonsville,
Ohio, used ''Yankee imperialism" as a
in

Bank

Mr.

that the bank will

branch

a

The

and

the

Huntington,

*

Ad¬

Board

Officer.

August 13.

on

appointed

to

years

H. Maass, President
Security National Bank of

Island,

open

Trust

and

Herman

the

Long

York

has

34

with

&

has announced

*

York,

W.

visory

be

C.

Vice-Presi¬

a

been
*

stone, New York.

for

Mortgage

for 28 years.

Boulevard, near Clearview
Development, White-

an¬

Mr. Dalziel has

bank

formerly

was

has

of David

Phillip Coombe

Mortgage Officer.
been

Savings

Vice-President

Gardens

*

Loomis, President

Senior Vice-President.

as

Lewis

*

*

Brooklyn
Brooklyn, N. Y.,

Coombe

officer

*

Scuth

Dalziel

was

*

proval

Richard

greater importance to management; but warns management must
know what it is doing as many do not yet recognize the seriousness

Germany, 77% would support the

tional

Savings

nounced

*

*

the

Muller, died July 27 at the age

of

Fang-

The consolidation of the First Na¬

*

G.

Bank
S.

John

boner, President, announced July

of

of

City

Ohio,

and

alsOs At

banking office

C.

ap¬

28.

*

President,

-

Saturday, July 30 at 19-19 Francis

Walter

&

National

The

and

as

Trust

of

and Trustee of the Hamburg Sav¬

V.

Company,
New York, announced that it will
open

Willem

been

Assistant

ings Bank, Brooklyn, N. 1\, Adam

of

by Mr. Flanigan.

e

Manufacturers

N.

Dirk

public relations program abroad. With com¬
explores public opinion and public relations
problems affecting American business abroad—particularly for the
new firms—without a favorable reputation!
suggests what can be
done by top management! agrees that measures recommended should
not be subordinated to other considerations of equal or perhaps
plete candor, Mr. Allen

has

Weaver

top—and not secondary—management's full

requires

that

support of an effective

*

*

Cashier in the
International Banking Department
pointed

The

Bank,

Assistant Vice-Presidents has
been

Stikkel,

*

also

P.

12,500

—

value $20).

Secretary

Mr.

announced

Levonas, John F. McGillicuddy

of

e

The

Conwrav
was

representatives

Agents;

of¬

by Mr. Flanigan.
Appointment
of
Michael

as¬

Pam, Chief Accountant.

Co.,
Assistant

John

Trust

J.

Appointments of F. Brian QuinEugene

He

starting Aug. 1.

Sub-Agent and Michael

Barnouw,

since 1953.

and

has

are:

Hooykaas,

Secretary in 1952, and has been
in charge of its Woodside Office

lan

Hooykaas

Agent.

duties

Cornelis

Trust

an

of

the bank

Trust

N.

appointed

As

Company in 1936, and was as¬
signed to its 39th Street (Man¬
hattan) office. After having been
fices

Dirk

sumed his

Mr.

the

Mr.

extremes of Castro but the underlying fears about
held in such countries as Germany, France and

Canada

outstanding

par

♦

Ohio,

bank.

It is not only the

of

shares

New York City

Hill and Knowlton, Inc.,

American business

York
March

of

as

1.

George

Thursday, August 4, 1960

Vice-President, International Operations,

By Charles E. Allen,*

to $190,000 by

000 to $250,000 by the sale of new
stock, effective July 19. (Number

Cleveland,

Nederlandsche

from

*

E.

open

Mr.

.

Of U. S. Business Overseas?

dividend, .and from $190,-

shares,

of New York, have
elected Vice-Presidents.
*

stock

As¬

and

City

County—in Great Neck Plaza and
*

*

Smith

D.

Vice-President Thomas

the

been

bank

to

an¬

Walsh, of the Dollar Savings Bank
of

permission

other

two

sistant

open

in

applied

*

Controller

Board

Reserve

Leichtman, President,

nounced.

applied to the New
Banking Department

Federal

permission

office
sau

Jacob

Chase Manhattan Bank, New

of

Bank

City, Pa., has
common
capital

stock from $150,000

The

.

PublicOpinion—AchillesHeel

City, Evans

increased

Revised Capitalizations

•

National

Citizens

The

Evans
New

David J.
appointed

been

Assistant Cashiers in the Adminis¬
trative

•

.

Thornton H. Hough and

NEWS ABOUT

Consolidations

Financial Chronicle

The Commercial and

(464)

programs

welfare

and simi¬

projects.

In

to it.

The

q

comparatively few ^•,,.'1
companies practicing good Pu0
1

192:, Number 5974

Volume

.

.

Commercial

.

The

and

Financial Chronicle

(465)

abroad are mostly

1otions
1

ex-

"need international operators.

ft1::

little

ires

companies/ such as the
tr net role um firms, that have
had
substantial stakes in

T

arc

Courage and

the

unless

use

accompanied

by

"gumption"

of

and

courage

advertising.

May, Borg Admit

countries. Even so, some of,
oil companies had to learn

ffhicr

Z importance of
hard way—by

public opinion

treatment or even

expropriation.

By Roger W. Babson

discriminatory

great
majority
of
companies still have not
Srned the importance of public
opinion to theiiv overseas, inter.Jts—either the hard or the easy
L Many of these companies
comparative newcomers to the
international scene and are so
nreoccupied with problems of oranbation,
manufacturing and
marketing that their managements
"imply have not gotten around to
the seemingly secondary matter of
public relations. And there are
other companies, some quite large
and long active in international
business, that have developed sub¬
stantial public relations operations
in the United States but virtually

Hardly

the

nut

an

It
a

has

been

This

summer

section

Activities

Relations

Public

and

certainly

Although many companies may

giving

ap¬

propriate attention to foreign pub¬
lic opinion, most American public
relations activities abroad suffer
from several important defects:
clear public relations

1. Lack of

policy. A great deal of improvised
and chaotic "fire fighting" is go¬

most

because

ing on

companies

adequately

have

not

their

basic

public

analyzed
opinion prob¬

them .and

about

done

should do it.

to

cope

with

line man¬
the
in¬

spend

visiting

the

a

country,

its

natural

re-

.

T

a

I

industry

Through the compliments of the
able

President

of

the

Bangor

&

Aailr?au'
*1

Ie

u

travel

through

the^
approxiacres
of

150,000
potatoes.
The plants
with
I

full

in

blossoms

some

potato

than

was

of

the

growers

just

are progressive

who

were

trip, and I

with

The

more

growing

white

the

talk

industry.

They

their

took

able. t°
are

-e

farmers."

businessmen

are

constantly seeking new
varieties of potatoes and attemptto improve the quality of the
mop.
The best potatoes are maring

ke„ed,

while

the

small

ones

are

ded for producing frozen french

frieds,

pre

mashed

-

an

meally potato,
the

potatoes,

by-products.

When you eat a

finely flavored
have

you

idea

no

patience, brains, and hard
which

work

have

been

put

into

raising

the potato. Apparently the

only

thing

which

Aroostook

County cannot control is the rain-

management

fall, which may be too much, or
too little, or occur at wrong in-

have little
opinion and
communications techniques. Amer¬
icans generally lack
sufficient
knowledge of the foreign environ¬
usually

ment, and often fail to adapt U. S.
public relations techniques to the
different

conditions

prevailing

abroad.
3.

Underrating the public rela¬

tions function. When

American

an

company does employ
qualified
international public relations as¬
sistance, it often inhibits effective
performance by burying
the

operation deep in
secondary man¬
agement.
Excessive decentraliza¬
tion compounds

this

difficulty by

tervals. I understand that the two

why Idaho potatoes are
strong competitor to Maine

reasons

such

a

is

potatoes
potato

because

growers

use

the
Idaho
considerable

irrigation and freely spend money
on
advertising.
Maine
people
education

need

the

on

value

University

trip
through
I spent several
hours with Dean Winthrop Libby,
who probably knows more about
Preceding

my

Aroostook County

4.
Over-dependence on marking
techniques, especially product ad¬

from

tion

into

vertising

isolated

national

com¬

and

with public

publicity, to
opinion matters.

e

many

mpany's

_

mpany's

besides
products—such as

impact

onomy, its policies

tn

Yess- ^^ese

ttme1ncan

are

of

no

use

the
the

local

Dean

teacher

social

are not items that

company can "sell"
ques-

Taking

As most readers

tising and the beautifully colored
advertisements

all

are

advertising, the

with

piece of butter thereon, a
of milk, and some orange

a

glass

or

fruit.

Furthermore,

the

potato contains only 20% starch
compared with 40% in bread and
60 % in rice—hence it is really a
food for reducing, rather than be¬
ing fattening. Maine
ward

in

is very back¬

not advertising

I

am

State

Paper

this.

Products Industry

told that 90% of the
of

Maine

is

covered

great
with

af)roa(f

are using only growing timber;
also that this
communications, con- timber is growing faster than it is
■Piana'J ^ 0n information that being cut and used. I was as¬
the ^TvGnt wants t° get over to tounded to. stand at the Searsport
substantia*
there are often terminal of the Bangor & Aroos¬
Mm ir
C1fferences between took Railroad and see a ship 400
savin
company is interested in feet long loaded with newsprint
terectlj9- ,what the public is in- made from Maine trees by the
wav''
ln hearing. Without "two- Great Northern Paper Company.
«

rCommunications, people
^ust being talked at
°t

listened to—and simply
Continued on page 24




There, however, are

several other

mills in Maine. Your news¬
boy probably delivers to many of
you
each
day
S.ate of Maine
paper

the

The

club

named

Jr.

of

Willard

Eastman

joined the staff of Green, Union Securities & Co.
& Co.,
Inc., The Superior chairman, with Morris

Erb

Building, members of the Midwest
Stock Exchange.
'

Drexel
club

DIEGO,

Goodwin

Calif.

the various

Co.

has

been

formed

with offices in the First National
Building to engage in a securities
business.

Officers

are

cott

Edward W.

&

co-chairmen of
are:

L.

Tal-

Co.

Robert

of Harrison

E.

& Co.

Daffron,

Jr.

and

Phillips B.
Street of The First Boston Corp.
* Golf:
George
DeB.
Bell
of

Drexel &

Co.

Guests:

-

Warren

H.

Bodman

DeHaven & Townsend,
Bodine.

Ball, Burge Branches

Minor

CLEVELAND, Ohio—Ball, Burge

outing
Lloyd ofi

as

Raymond

of Drexel

Prizes:

or

committees

Attendance:

Percy H.

—

S.

Dillon,;

&
Co., president of the;
outing chairman ex officio.

as

The chairmen

Percy Goodwin Co.
^special to The Financial Chronicle)

SAN

club

Sports: Harry K. HieReynolds & Co. and Wal¬

stand of

lace

of

Crouter &

H.

& Kraus has opened a branch of¬
fice at 4544 Main Avenue, Ashta¬
bula and
at
1679
Mentor Ave.,

Runyan
of
Hemphill,
Noyes & Co. *
\
"
Publicity: S. Grey Dayton of

fices.

Wood & Co.

:

Elkins, Morris, Stokes & Co. and
Spencer D. Wright, III, of Wright,
Registration:

John

M.

Hudson

newspapers.

state

is largely depen¬
the advertising which

Mayer & Morgenstern, 120 Broad¬
New York City, members of

Eckfeldt of Stroud & Co., Inc. and

of the country—
ancj 0f the world—carry.
As

the American Stock Exchange, has
admitted
Michael
B.
Dretzin
to

Joseph E. Smith of Newburger &

the

which

left

is

Yet,

to

the

Maine

of

(j^t

upon

newspapers

advertising increases,
the number of pages of newspapers

newspaper

increases

the

and

Mayer, Morgenstern Admit of Thayer, Baker & Co.
way,

partnership.

Bernstein

number

of

as

pages

lature of the State of Maine would
realize its responsibility in helping to build our nation's prosperity by stimulating newspaper advertising.

SYRACUSE, N. Y.—First Albany
Corporation has opened a branch
office

ing
W.

in

the

under

State

Tower

direction

the

Build¬

of

John

Burns.

There

are

small

numerous

should

which

Theodore

Willard

M.

Kidder, Peabody

Wright, Jr.

Transportation: James W. Heward

of Butcher

&

Sherrerd.

J. N. Russell Adds
(Special to The Financial Chronicle)

CLEVELAND,

O.

Thomas

—

of J. N. Russell &

Commerce

Co., Inc., Union

Bldg., members of the

New York and Midwest Stock Ex¬

changes.

in¬

attract

ately, too many young people are
leaving the State.
This sad fact,

furnishes

however,
tunities

to

other states to

start

more,

come

in Maine small woolen

textile

There

are

and other

shoe factories, lob¬
fishing and can¬

mills,

THE

OLDEST

other

and

ster

I960

from

to Maine and

small business.

a

1833

oppor¬

people

young

CHARTERED

SOUTH

THE

OF

INSTITUTION

FINANCIAL

CAPITAL

NATION'S

ning facilities, and possible forms
of

from

operating
situation

labor

workers

is

is to

At Close

Cash

espe¬

U.

be commended.

people
are
instinctively
religious and conscientious. They
are anxious to give a day's work
naturally ingenious.
For young people who want an
independent business, I especial¬
are

of Business June

15, 1960
LIABILITIES

RESOURCES

costs;

Maine

and

STATEMENT OF CONDITION

al¬

The efficiency of

cially favorable.
the

field

taxes

income

state

reasonable
its

The

extraction.

mineral

and

S.

State,

due

from

banks...$11,550,210.76
9,185,377.30

Capital

Government Securities.!

Municipal

and

Other

$ 1,750,000.00

Stock

1,750,000.00

Surplus

Securities

5,431,822.51
Stock in Federal Reserve Bank
10>,000.0ri
Loans and Discounts
29,751,622.56
Banking Houses and Fixtures
1,185,253.61
Other Real Estate
83,872.44
Other Resources
.*.
198,966.29
Customers' Liability on
Letters of Credit..*
7,548.72
TOTAL

RESOURCES

Undivided

Profits

;....

Reserves

.$57,499,674.19

948,352.69

2,091,588.89

50,952,183.89

Deposits

Liability

TOTAL
.....

en

Letters of Credit

LIABILITIES

7,548.72

$57,499,674.19

ly recommend that they visit Au¬
gusta, Maine and see the Depart¬
ment of Economic Development,
Dr.

Robert

G.

Geological

State

especially

Doyle

the

of

Department.

commend

I

good

the

AFFILIATED

FIRST

RAILROAD

GEORGIA

&

BANKING

RAILROAD

Sea

&

Shore

Fisheries

Depart¬

AND

WITH

COMPANY
BANKING

OF

GEORGIA

COMPANY

AND

work of Dn Robert L. Dow of the
FIRST

OF

GEORGIA

FIRE

8c

CASUALTY

COMPANY

ment.
son

days

Any ambitious young per¬
can well spend two or three
at

the

State

House

at Au¬

gusta, Maine, where he will find
intelligent experts eager to help
him. The greatest of all oppor¬
tunities lies in selling advertising
to
Maine
potato
growers,
to
Maine's

manufacturers

of

a

hundred other com¬

modities. Natural resources

& TRUST COMPANY
AUGUSTA, GEORGIA
FEDERAL

DEPOSIT

INSURANCE

CORPORATION

paper

products, and to those in the State

producing

GEORGIA RAILROAD BANK

MEMBER

are

of

MEMBER

FEDERAL

A.

Russell has been added to the staff

people to Maine. Unfortun¬

young

E.

&Co.

People

Young

for

Exchange:

Company.

of

Branch

NEW CASTLE, Pa.—Bernstein &
of newsCompany has opened a branch of¬
papers decreases, the demand for
fice in the First
Federal
Plaza
newsprint decreases proportionately. Furthermore, the continued Building under the management
of Francis R. Silverman.
prosperity of this nation depends
upon increased use of newspaper
New Syracuse Office
advertising. I only wish the Legis-'
the

Stock

Tennis:

for

demand

newsprint increases. Inversely,

or

The

of

individual

lows

from a
a potato

Day

of

while

says

committee

promotion

Libby's wife, who was a

perfect menu
dietician's standpoint is

Green, Erb

indirectly aided by the Federal
Government;, but 'the State of Mentor, Ohio. Robert T. Blaine
will be in charge of both new of¬
is
doing nothing to innewspaper

of

forthcoming 35th

will
be
held
on
Friday,
Sept. 23, 1960, at Huntingdon Val¬
ley County Club, Abington, Pa.

Maine
crease

Field

which

This

magazine

appointment

chairmen for the
Annual

The State of Maine is doing Goodwin, President; Fred Kunzel,
very little to help the manuf ac¬ Vice-President; and R. L.
Paine,
turer of these paper products, Secretary and Treasurer/ ^

especially applies to newsprint, which is
absolutely dependent upon newspaper advertising. Radio and television adver-

the

lan has

in packeverything sold

supermarkets, as well as from
the increase in use of cartons and
boxboards. These products, however, are suffering from lack of
proper advertising.

of Home Economics,

the

that

partnership
in
May,
Company, 61 Broadway,
York City, members of the

PHILADELPHIA, Pa.—The Bond.
Club of Philadelphia announced

nCLEVELAND, O.—Leslie H. No¬ Boothby,

growth

dom

the industry.

centrnp-ay

Hut

the

almost

tatoes.

too much, and not
comnl?^ en°iigb. Most American

Ero'v

of

sprouts and give us the new po¬

;he Public.

"oikm

from

aging

portunities for starting a small
independent
business.
Maine's
surplus of water power makes for
reasonable electric rates; its free¬

rpare ^est answered by
\vhilnsle corporate behavior
loth? ls effectively communicated
]jnU

fiting

of recreation also holds many op¬

talent,, and

4wCal citizenry, but

tinno

you
read and your telephone directory might well have
been printed on paper made by
Maine mills.
Maine is also bene-

by cutting an old potato into sev¬
eral pieces, each containing one
or
two
"eyes"
which develop

develop-

and

books

to

to the country's juice

°mic development

vw

an

for

ocat managerial

jj.

prJJ°nInbutions

the

on

the

even

know, new potatoes are obtained

the ex¬
itself to

things

and

deal

citizenry. The citizenry is in¬
vested in, and often worried

«oout,

seed, or a bulb, or a root. In fact,
tiny potato seeds which come

the

blossoms

ad¬

&

Joins

This

confuses two quite different
prob¬
lems—the selling of
tangible prod¬

ucts to customers; and
piation of the company

potatoes

the

been

American Stock Exchange.

which

dustries

partments.

relations func¬

newsprint;

Agricultural

Department
.

has

(Special to The Financial Chronicle)

Opportunities
of Maine

Gussoff

of

advertising.

than anyone in Maine.
He explained that the potato is
really a part of a stem, and not a

breaking the public

1

yGSj

tangibles and complexities of
public opinion. Nationals in line
knowledge of public

visiting, Mr. Babson critically

in

p

of

;.-v

2. Over-reliance upon

agement

who

to

sources.

lems and determined what should

be

of

to

independent business.

coastline,

when

consider that they are

toe.

I have chosen the
Maine. I have been
truly
astounded by its
size, its
of

bloom

Abroad?

to

summer

otate

mately

Defects of Most U. S.

What Are the

custom

my

Part of each

ditferent

ta

nothing overseas.

head

mitted
New

Ma|ine,the finds, is not doing
enough to advertise- its potatoes and to
Help the manufacturers of
paper products. And he commends Maine
to young people who want

American

re

Maine from

M.

Borg

one to sit around when summer

examines

Arnold

Phila. Bond Club

Outing Chairmen

rf

Sher

13

RESERVE

SYSTEM

14

Commercial and Financial Chronicle

The

(466)

Fund,

Wisconsin

The Funds Report

FUNDS

MUTUAL

expected

friends"

from

the

completed some¬
month of August.

be

to

shareholder

With

Margins governing stock purchases recommendations

of

funds. The merger is

time during the

the Pros and the Lifeguards

&

and
MissilesFund have ap¬

consolidation

the

mutual

two

Science

Axe

Corp.

Jets & Automation

proved

The Amateurs,

of

Shareholders
Electronics

ROBERT E. RICH

BY

of

approval

agreement, Axe
Science will acquire the assets of
the

merger

last week to 70% compared
with
only
15%
who
to
investment
counsel Missiles-Jets fund which has ap¬
level at which there turned
was scant room for the excitable
(only 1% consulted a lawyer). proximately
$4,550,000 • in
ex¬
amateurs
to
go
overboard.
If Many a medical man or mechani¬ change for Axe Science shares of
relatively
few
beginners
have cal engineer who has ventured equivalent value.
the marketplace can attest
drowned in the treacherous mar¬ into
Axe Securities Corporation will
ket currents of 1960, then some that coping with a tourniquet or a continue
to
act as
the
general
of the credit doubtless belongs to torque
of
the
consolidated
is
no
safeguard
against distributor
uninformed talk.
the high-margin safety belt.
mutual fund.
Yet
there
is
good reason to
Eurofund,
Inc.
in the second
Of course, there are those who
reduced

were

from 90%,

that

believe

the

almost

the

cries

of

absence
in

a

main,

for

the

to

complete will argue that there is little rea¬
help is due, son to wail here in the midsum¬

of

presence

the lifeguards. Mutual fund coun¬

mer

of 1960 since

the Dow Jones

industrial average has

fallen from
sel
has
been
nothing short of this year's peak a mere 12%. How¬
that for the past several years, as
ever, not everyone buys the piv¬
this
department
has
noted on otal stocks and even here many
than

more

vey,

occasion.

one

has

of course,

taken

I

to

waders

swept

been

kept

under¬

of

the so-called

"average" stocks
have fallen more than 25%. (The

many

submersion

from

being

equities has been far, far deeper.)

life¬

the

because

under

sur¬

how

determine

were

No

It's

like

of

the

fellow

the

telling

guards were available, but another man who could not swim that he
kind
of
survey
indicates
that had
nothing to fear because the
there are still too many people
average depth of the water was
who have no hesitation in splash¬
only three feet. What he neglected
ing about in perilous waters with¬ to tell the
unwitting victim was
out bothering to take lessons.
that at some places it was more
A study of the bathers has been
than seven feet deep!
made by the United Shareholders
Thousands
of
non - swimmers
of America, a non-profit investors'
Finan¬

unbidden to the Old

came

organization founded in 1949 to
cial Swimming Hole in the 1920's
serve as a representative of stock¬
and the 1930's. A not inconsider¬
holders at legislative hearings and
able number drowned. It is easier
at management meetings. Its ques¬
to sympathize with the untutored
tions have been directed at 2,000
than with the professionals, but
owners of common stocks, a rea¬
the amateurs need more than pity
sonably broad

sampling.-

-

and protection is better than
than one-half of
help. If they came unbidden in
those questioned could not even
another age, this time, in the name
name a single
product or service
of people's capitalism, they have
of any corporation in which they
been invited—all but summoned—
owned shares. They did not even
to go into the water. To the credit
know
the kind of
business or
of the operators of the Old Finan¬
service engaged in by any com¬
cial Swimming Hole, they have
pany in which they owned stock.
detailed the risks. Still, the man
Many thought their Bell & Howell
trapped in deep water will 'eel
was
an
aircraft stock,
General
no less uncomfortable
for having
Motors in the gasoline business,
been warned. As for the old swim¬
Raytheon
a
uranium
company,
ming hole, it never will be the
Swift a truck maker and Merck
same
again if there is to be a
in foods.
recurrence
of
the tragic events
Says United Shareholders' chief that scarred an older generation.
Benjamin A. Javits: "More than
The pro, obviously, doesn't need
half the investors have no idea
the lifeguards. Quite often, he is
of what they are buying or what
one
and the same person.
they
own."
Moreover,
55%
of
Neither the pro nor the amateur
these devotees of people's capi¬
—

Slightly

talism

$24,257,189,
Total

share.

a

$19.01

could

not

name

a

single

in

Something
persons

like

three

questioned

in

any

when

but

guarantee,

somebody gets around to writing

col¬

lege training, yet 21% admitted
they
bought
stocks on "casual

history of this generation of
investors, he's certain to cite the
key role played by the lifeguard
in

affording maximum protection

for

hundreds

thousands

of

of

people who were determined to
keep their heads above water.
And maybe

that study will in¬
clude a survey of the results of
venturing into
the water with

FOR THE GROWTH
MINDED INVESTOR

professional

guidance

as

con¬

trasted with "casual recommenda¬

free

tions from friends."

value

asset

net

Shares,

prospectus

Contractual Plans

Aviation-

The

the

Electronics-Electrical

State

of

Banking
has

of Nebraska

during

that

ports

months

or

edness which penalize an

0/GROUP SECURITIES, INC.

if

he

withdraws

An investment in the

growth
possibilities of selected com¬
mon

stocks

of

the

maturity.
Director

aviation-

electronics-electrical equip¬

Edwin
of

investor

funds

N.

Van

before

packaging,

rubber

Home,

his

said

department last month denied

industries is offered by
this 25 year-old mutual fund.

ment

plications
or

Mail this advertisement.
CFC

to

front-end

ment

funds

register
load

*

People
that

at

.

*

which

invest¬

"charge

a

Nam*

heavy sales load in the first

total

30

_

Siate.

DISTRIBUTORS GROUP, INC.
80 Pine

Street, New York 5, N. Y.




reports

net

assets

$6,299,874
and
net
asset
value per share $18.64. This com¬

$3,361,601 and $16.80
a
share on June 30, 1959. During
the
year
the number of shares
outstanding rose to 338,052 from
200.063. The company during the
last

months

three

O'

Full

Chock

added

Haveg Industries,
Litton Industries, National Aero¬
Nuts,

nautical

Nuclear-Chicago

Corp.,

Corp., Suburban Gas, Varian As¬
sociates and Vendo Co. It elim¬

Addressograph-Multigraph,

inated

Aeroquip, Food Fair Properties,
Marquette Cement Manufacturing,
Pitney-Bowes,
Reynolds
Metals,

*

*

Growth Industry

its

annual

June

report
of

value

30

Shares, Inc. in

that

states
total

net

at

assets

$24,483,286, equal to $20.35 a
on
1,202,888 shares. Com¬
parative figures are $19,796,878,
was

share

$19,78
June

1,000,807
shares
at
1959. During the latest
Brunswick
Corp.
and

and

30,

quarter

Commonwealth Edison

were

Chas.
1
«

as

of June 30

share

down

Fund,

Inc.

the

were

announced

from the
earlier but

$15.10 six months
*

assets

net

*

Shares, Inc. at June 3D

791,248, equal

Dividend

were

to $2.96

per

$268,share.

At June

30, 1959, total net assets
$273,938,371, or $3.11
per

share.
*

Institutional
nounced

#

#

Shares,

Ltd.

an¬

>

instances
mission."

as

sales

com¬
r

Eliminated

were

Ohio Elec¬

eliminated.

holdings

of

of

*

*

*

the mid-year
report. This com¬
Detroit
Edison
by pared with net assets of $152,475,557
on
Dec.
10,000 shares, Food Machinery by
31, 1959, and with
5,000, Fruehauf by 5,000, Republic $151,940,353 on June 30, 1959.
Natural
Gas
by
10,700,
Rexall
Net
asset value
per
share on
Drug by 12,500 and Square D by June 30 was $9.49 compared with
10,000.
$9.68 on Dec. 31, 1959 and $9.69

of

holdings

The

company -eliminated
from on June 30, 1959. The common
investments
were
further
portfolio
American
Metal stock
Climax, Bethlehem Steel, Cater¬ reduced during the first half of
the
pillar
Tractor,
Cities
Service,
year.
The
common
stock
General
Motors,
Mead
Corp., percentage, which stood at 66.7%

its

Public

Service

of

United

Aircraft.

It

Indiana

and

hold¬

reduced

ings of Atlantic Refining by 8,300

a

earlier

year

and

65.5%

at

on

Dec.

31, 1959, amounted to 59.9%
mid-year.

at

shares, Container Corp. by 13,000,
Common stocks eliminated from
Inland
Steel
by 5,000 RCA
by the
portfolio
during
the
six
16,500, St. Regis Paper by 10,600, months were: Bestwall
Gypsum,
Standard Oil (Indiana)
by 5,000 Deere, Jones & Laughlin Steel.
and U. S. Steel by 8,000 shares.
Lincoln National Life, J. C. Pen¬
•I*

T.

Fund,
June

Skelly Oil, Stauffer Chemical
Stevens, U. S. Plywood and
at Youngstown Steel.
ney,

Stock

assets

net

equal
each
of 2,407,863
corresponding figures

on

a

*

*

or

the

Co.

reports

net

amounted

30

to

investment

six

totaled

at

were
$42,share. For the

a

months

income

net

while

$878,035

investment

net

real

$25,780,
against net income of $754,874 and
on

loss

real

net

was

investment

on

*

Mutual

of

$

In Banking
A

Income

Foundation

Group

"said

companies,
of

three

of

this

insurance

brings

dividends

thus

the
far

to 45% cents, against
38V2 cents in the like 1959 period.
year

addition

tribution

a

of

60

capital-gains

dis¬

cents

was

share

a

last May.

made

ft

V

*

Sovereign Investors, Inc. reports
net assets at June 30

605,

equal

each

of

a

$3,634,share on

.

261,960 shares. This com¬
pares with
$3,397,981 and $14.92
on each of 227,757 shares at mid¬
of 1959.

year

*

:|s

United

$11.23

were

share.

a

net

$93,125,671,

This

compares

$82,844,704, or $12.68 a share
year
earlier. During the year

share

total

to

rose

8,293,921 from

6,534,631.
*

*

*

Diversified Growth

Stock Fund,

Inc. reports record

highs in assets,
number of shareholders and shares
semi-annual
sets

According
report,

1960.

Over
of

from

21,171
outstanding

is

This

to

total

38,504

Net

the pre¬

over

of

Chairman

the As¬

Vice-President

and

of
Jack¬

Cashier

and

First National Beach Bank,
sonville Beach, Fla.

Working from the Spring Bank
Directory of 1960, Miss Moore
164

Presidents

bank

women

and

found

Committee

her

members

in¬

in their count.

cluded
The

statistics are

new

reported

article ap¬
pearing in the currnet issue of
The Woman Banker, official pub¬
lication of the National Associa¬

by Miss

Moore

in

an

tion of Bank Women.
The

notes, "Women

article also

constitute

population in
a

total

the

of

10%
our

officer-

banks. There is

approximately 110,000
nation's 14,-

of

bank officers in this
037

ers

according
of

their

9,898

to the

latest

with

banks

American

the

Bank¬

Association,"

NABW's Re¬
fddition to
Miss Ruth Nor-

Other members of

committee

search

the chairman

are:

in

berg,

assistant

vice

First

National

Bank

president,

-

Trust

and

Co., Evanston, 111.; Miss Peggy
Reifsnyder, assistant trust officer.
Central Trust Co., 1216 11th Ave¬
nue,

Altoona,

Fedder,

vice

Miss Leoia
president,
1

Penna.;
-

Kirkwood

net

as¬

Mo.; Miss Harriet Swanson,
ant secretary, Society for Saving^

shares

from 5,861,826 to

9,123,342.
asset value
per
share on
30, 1960 was $10.07, com¬
pared with $9.50 on the same date

June

increase

an

vious estimate of 10,500.

the

the same period, the
shareholders increased

rose

by the
Na¬

the

of

tional Association of Bank Women

to

from

rose

women

reported

Committee

Research

estimate

or

is

States

branches,

*

Delaware Fund, Inc. reports

assets at June 30

12,506

officers and directors in the

were

$13.86

to

of

total

new

bank

Research

a

Nationwide

In

common

sociation is Miss Treva Ann Moore

*

quarterly dividend of
15 cents a share, payable Aug. 25.
The
fund,
an
affiliate
of
the

this

the

in

More Women

$1,876 in the first half of 1959.

total

holdings

closed-end

company

096,944 and $35.08
latest

assets

$35,099,109,
year earlier

$29.25 a share. A
figures for this

loss

New

stock portion of the
Allied
Chemical,

*

American-South African Invest¬
ment

P.

portfolio were:
Ford
Motor,
earlier were $22,488,443, W. T. Grant, International Har¬
share and 1,690,632 shares. vester, Pepsi-Cola and .Square D.

The

year

June

J.

totaled $33,984,629,

$14.11

shares.
a

$

Growth

reports

Inc.
30

$13.30

»!*

Price

Rowe

number

Parke, Davis holdings

stocks

and G. D. Searle. It also increased

investments include

tric Co. and

all

were

common

Aluminium Ltd., American Cyana-

$55,691,682 on June
30, 1959, to $91,875,645 on June 30,

Columbus & Southern

charged

American

Aircraft Corp., and U. S. Chemical

the

during
the
past
quarters
it
has
made
"major
changes" in its investments. New
Brush

of

&

Net
assets
of
mid, Smith Kline & French and
Commonwealth
Upjohn. It also made initial pur¬ Investment Co. totaled $148,516,467
on
June
chases
of
Gustin Bacon,
Friden
30, 1960, According to

outstanding.

that

stocks

common

Machine

General
Selected American Shares, Inc. American Oil Co. of Texas; Kaiser
Aluminum & Chemical Corp.; Na¬
reports that at June 30 total net
tional Life & Accident Insurance
assets were $100,127,172, equal to
Chas. Pfizer &
Co., Inc.$9.08 a share, against $10.32 a Co.;
Co.; Signal Oil & Gas
share a year earlier. In the latest Pittston
quarter the company made initial Co., Class "A," and Technology
Instrument Corp.
purchases of 5,000 shares each of

a

of

'

,

of Milling Corp.

with

earlier.

Total

$199,-

*

*

up

months

three

of

Fund

630,000 and $13.89
on
each
14,370,507 shares at March 31.

net asset value

$14.96,

was

from

Pfizer
*

1959.

the

.

added

portfolio.
Holdings
of
American Express and Continental
Mead
Casualty were , increased.
and

*

Putnam

This compares with

shares.

the

to

assets

net

Foundry Co.; Bruns¬
Boston reports total resources at wick Corp.; Cessna Aircraft Co"
midyear amounted to $212,572,000, Holt, Rinehart and Winston, In- '
or
$14.59 on each of 14,573,661 Ling-Altec Electronics, Inc.;'piper

declared

*

*

♦

George

The

Shamrock Oil & Gas and Tennessee

Gas Transmission.

Thursday, August 4, 1960

$16,339,175, or $6.27 a share.
During the %six months ended
This
compares
with $15,535,761 June 30, 1960, additions to
hold¬
and $6.26 a share a year earlier. ings included new
investments in

with

pares

Beryl¬
of the investment." He said:
"Up lium, Caterpillar Tractor, Haloid
to
Xerox,
Moore
50%
of the
Corp., Ltd., Owenspayments made
and
Upjohn.
during the first year are irt some Corning Fiberglas

Address.

City.

years

Corp.

Securities

June

.

reports

Inc.

total

30

June

at

.

were

to

*

were

ap¬

contractual

mutual

tires,

and

machinery, and metals and mining.

were

Banking,

six
year

additions were made in
utilities,
office
and
business
equipment, drugs, soaps and cos¬
metics, insurance and finance, and
electric products. Reductions were
made
in steels,
oils, paper and

that

certificates of indebt¬

fiscal

major

*

contracts

was

first

the

latest

the

of

of $13.81

from sale in that state investment

Equipment Shares

30

♦

*

#

Dreyfus

barred

reports

June

Keystone Growth Fund K-2 re¬

a

Department

Inc.

at

*

describes

30,

June

$35,269,314,
equal
to
$24.66
a
share,
compared with $24.26 a
share on Dec. 31, 1959, and $23.73
on June 30,
1959.

eliminated.

Nebraska Bars

At

*

*

*

Standard

Johnson

booklet-

three

$19,956,551

was

1959, the figures were $18,965,192
and $18.06 a share.

the

every

had

gets

assets

to $23.10

value

asset

share.

a

net

equal

earlier

months
and

total

30

June

On

tion.

more

president
of
any
company
which they owned shares.
four

tion of its first full year of opera¬

were

other

of

hundreds

comple¬

marked

1960

of

quarter

that

.

Bank,

Kirkwood />k

Hartford,
Conn.;
Miss
Betty
Gaunt, secretary, Cohoes Saving:
Bank, Cohoes, New York; Mis i

an
Nation ft
Bank, Little Falls, Minn.; WH
Doris
Warner, assistant casni «
The Puget Sound National BaP'H

Marjorie
assistant

Siewert,

cashier,

director

First

Tacoma, Wash.; Miss Mary

Fidei

Number 5974

Volume 192

The Commercial

...

and

Financial Chronicle

(467)
■

Snk

America N. T. & S. A,

of

bank and insurance

North

t

Mrs.

.

!ps'ident

Smila-Moss

5

own over 10% of the stock.
The outstanding growth in investment income
sistent highly profitable

This Week

*"cfontraSt t0 the

Krider Joins

UenUfhiiC compam.es in
tin?tva
J^u an
ating
record. Much of
this

THE OHIO
CASUALTY INSURANCE COMPANY

has

111

CHICAGO,

-

a

President and Di¬

Krider, former

and more

Ward & Co.
recently financial Vice-

President

and

of Montgomery

rector

Controiler of

J

profitable results

joined Taylor,
Rogers
&

Street,
of
Midwest

Salle

Ex¬
as

Vice-Presi¬
dent
and
a

head the firm's re¬
search and new business depart¬
ment in addition to

assuming

eral management duties.

of activities

gen¬

This

will

ac¬

more

fully complement Taylor, Rogers
6 Tracy's present
underwriting,
retail sales, specialist and
divisions.

in

all

lines

automobile, general
Independent rate filings are

trading

graduating from Grinnell
College in 1935, Mr. Krider joined

in

most

surety rates also

of

the

other

based

are

on

Significant developments during 1959 included the
develop¬
of the Ocasco Budget, a
premium financing plan, and the

ment

establishment

package

of

an

policies

accident

written

and

sickness

department.

Homeowners

are

Among
Comprehensive

and

Dwelling

coverage and Storekeepers Liability coverage. The re¬
duced premium auto insurance
plan written by West American has

proyed effective in combating competition of the specialty
panies.

After

written

States.
In Ohio,
independent filings.
Protection against abnormal losses is obtained
through reinsurance
treaties with a leading reinsurance
company.

fidelity and

Edmund A. Krider

will

celeration

now

Ohio

Corp.

made
new

position, Mr.
Krider

wholly-owned subsidiaries,

liability, glass and theft insurance.

Director.
his

full multiple-line business is

a

two

purchased and absorbed.
Business is reported
through some 40 branch offices and gen¬
eral agencies. Rural markets
are penetrated.
The Ohio home of¬
fice's jurisdiction, which covers
mainly the Midwest and the South,
is supplemented
by an Eastern Department in Philadelphia and a
Pacific Department at Los
Angeles for the West Coast States.
The company is a member of the Ohio
Bureau of Casualty
Insurers which sets rates for such lines as

members

In

its

was

Inc.,
La

Stock

specialty carrier,

together with

Company (Hamilton) and West American Insurance
Company (Los Angeles). In 1939 the
Pennsylvania Indemnity

South

change,

Ohio, the

company has a force of
O'?00 agents and is licensed in 46 States and the District of
Columbia; the States not covered are
Alaska, Hawaii, Maine and
New York.
Although Ohio Casualty began operations in 1920 as an

Insurance

the

•

?^an!S?ar*er?d a* Ham.ilton>

u

about

written,

105

to

consistently have been obtained throughout each

and every year.

Company,

Tracy,

undoubtedly has been due

handling, modern marketi
P*u
n ^atf fllin8's- The medium-sized Ohio Casualty
^row^h record clearly has outpaced industry averages and

automobile

Electric
has

Cook

success

rWJltifg\diligent claims

Edmund A.

com¬

The West American automated program for writing auto¬

mobile and other personal insurance
in 1959 with premium writings

lines made further progress

through

various

the

to

presidency,

positions
which he re¬

signed following the Wolf son

Selected

Statistics

Written*

1959

Growth

$68,350

64.033

1957

and

ments

60.013

$90,195
81.205

should not be

largely con¬ management and achievement. In
Housing Author¬ 1955, it financed its ventures with
ity bonds. I quickly replied that 3%'s due Oct. 1, 1979. The pres¬
his judgment was correct under ently offered bonds are of equal
present market conditions. The dignity and present coverage on
yields
on
these
highest
grade all debt is approximately 1.46 ris¬
bonds
estimated coverage of
equalled
the
yields
on ing to an
many bonds of lesser quality even 5.85 in 1978.
fined to the New

into the A rating category.
mind that the Housing

down
Bear

in

of the faith of the United States
to the payment of the annual con¬
tributions pursuant to the con¬
tracts. Their security is unques¬

tioned.
1970

at

These

Listed

below

Street, members of the New York
Stock

Exchange,

Research

and

as

Director

of

Underwriting.

Abraham Strauss
& Son Formed
Formation

1

of the investment firm

of

Abraham Strauss & Son
Inc.,
Members of the New York Secunty
Dealers
offices
au

o

^oe

at

115

^as

Association,
Broadway,

with

New
announced by

been

Strauss, President.

Amott, Baker

3.60

Ratiof

Margins

AA

57.6%

37.2%

5.2%

AA

37.5

6.5

67.240

58.1

39.1

2.8

47.911

65.822

53.1

38.0

8.9

$.

A

A
A

The

NAUGATUCK,

Conn.

—

Amott,

Jer &

Co., Incorporated has
pu
? ^a branch office at 19
iirch
Street under the
manage¬

ment of
Milton
Jackson
lew
le

new

office

associated
assistant

as

man¬

30.8%

for

1949 in Admitted Assets

and in Net Premiums

137% and 128%, respectively, has been well above
average for the industry. Total assets of the group at $90.2 million,
at year-end 1959, were 11.7% above 1958. Net premiums written
of $71.9 million for 1959, increased 12.4% over 1958. Policyholders
surplus increased $1.8 million to $28.2 million; since 1949 this item
has increased 224%. Net premiums written at over $3.00 per dollar
at

Capital Funds is an impressive ratio.
loss and expense

ratio for 1959 at 94.8%,

al¬

though slightly higher than in 1958, can be considered a remark¬
able achievement especially when the increase in premiums writ¬

year

Invest.
Income

Total

Avg. P/E

Earnings

Ratio

Divid.

Book Value

$0.93

$1.92

15.1

$0.64

$19.00

26—19

0.82

2.14

10.5

0.58

17.99

Year

Price Range

1960

31—23

1959

34—24

1958

—

—

—

16.0

0.54

15.46

0.50

14.55

1955

24—19

0.64

1.49

14.4

0.49

15.58

0.28

7.79

7.2

0.17

~~9.30

1

1949—

NEW YORK 5, N. Y.

Teletype

Socialists

NY 1-1248-49

in Bank Stocks




CO

i

!

11-

1

Net investment

of the AA
selling

at

questionable yield differentials in
favor

of

tainable
The

the

the

versus

on

bonds

yields

the

list

presently

ob¬

on

the Housings.

first

lien

gasoline

growth

verv

since

While these two
same

issues

investment

are

class

not of
as

the

New

Housing
bonds
they
do,
nevertheless, have their merits
and the yield is outstanding.
Dade

County Port
4.70's due Oct. 1, 1999,

Authority
are offered

The estimated coverage
the life of the bonds is 1.84

over

from

all

pledged

times

from

and

revenues

gasoline

taxes

alone. The

preliminary U. S. Cen¬
figures for 1960 show Pinellas
County
with
a
population
of
371,989.

sus

These

two

high yielding, good
adequately
secured
revenue issues with their yields of
4.60 to 4.70 compare more than
favorably with A rated issues at
the

and

4%

1

level

and

BAA

issues

ranging from 4.25 to 4.40. I fully
expect their future price perform¬
ance
to improve and follow the
pattern of the previously men¬
tioned high yielding issues.

Jack Currie With

Moroney, Beissner
HOUSTON, Tex.—Jack T. Currie
has been elected
of

a

Vice-President

Moroney, Beissner & Co., Bank

of the Southwest Building. He was

formerly

a

partner

in

Moreland,

Brandenberger & Currie.

Like
to

sell

large
block?

Call...
Marketing Department

1949 of 237%

few insurance

the end of 1959.
The dividend record is without equal with increases each year
in navout and a gain of over 375% since 1949.
The current quar¬
terly dividend payout, $0.14 a share plus a year-end extra of $0.08
for a total of $0.64, provides a yield of 2.7% at the current price
were

on

tax

second

grouping of bonds,
namely, the high-yielding Dade
County Port Authority and the
Florida Development Commission
Pinellas County Road and Bridge
Revenue, are worthy of mention.
the

surplus

revenue.

grade,

AAA Hous¬

income increased 11% in 1959 over 1958, and

is an achievement surpassed by
companies. At the end of 1959 the well diversi¬
fied and highly liquid investment portfolio included U. S. Govern¬
ments at 17 3% of total assets, other bonds mainly tax-exempts
It 47 3% and common stocks, 13.6%. Cash, receivables and bonds
the

telephone: BArclay 7-3500

the

many
bonds
are

a

19.8

BROADWAY,

and

—

1.22

stock E*chanf«

3.75

closed

a

Approximate

1.21

American Stock Exchange

3.45

suggests that there is
spread between the A

Per Share Statistics
Approximate

0.72

j-AiRD,BrssELL S Meeds

3.40

operating returns for 1956 and 1957 less outstanding than usual.
the past ten-year average loss and expense ratio of 92.6%
reflects superior underwriting experience.

0.72

MemS"8
Weinberg NeW York

Here is a good bond of a de¬
veloping community in a growing
State secured by surplus gasoline
tax funds and by tolls as well to
be charged on the facility. The

Even so,

22—17

Request

offered at 102 ^ to yield approxi¬
mately 4.70 to maturity.

Due to such factors as high auto accidents, in¬

ago.

26—22

on

3.15

repair and medical costs, and higher jury awards, in¬
creased claims in the various automobile lines developed to make

1956

bank stocks

3.60

very

creased

1957

Available

3.55

3.35

a

success¬

first quarter of 1960, premiums written advanced 20.3%

Our Mid-Year

n. y. city

3.40
3.30

3.20

a

Expenses appear to be under excellent control.

ten is considered.

Earnings Comparison of

leading

^

was

accounted for 75% of the total premiums written. As to premiums
written, the leading States include Ohio, California, Pennsylvania,
Michigan and Illinois.

with

ager.

1959

property lines and 69.2% for casualty lines. Three lines,
Auto Physical Damage, Auto Liability, and Auto Property Damage,

M. Seligson. Anis

a

bonds

AAA

and

or

a

list

too close

3.15
3.00

ings. Secondly,

to premiums earned.

The distribution of premiums written in

from

1990
3.50

48.590

For the

Branch

1980

are

ful reception at time of sale. The
4.85's due in 1988 are presently

1.45

1970'

3.45

50.582

The combined

level.

Security
City ot Cincinnati

3.50

47.955

of

year

10,

3.35

1955

Growth since

recent is¬

3.25

1956

Written,

some

3.20

2.1

fire

are

with yields given for the

sues

3.10

56.0

recent issue which met

certainly appear
when compared
with many of the recent offerings
bonds are
of good to high grade bonds none
the
80%
of which can
excel
in
quality.
cheap

3.00

^Expenses incurred to premiums written.

L.
Morris has become associated with
Powell, Kistler & Co., 110 Old

bonds

relatively

Tenn._

38.1

FAYETTEVILLE, N. C.—James

at

Milwaukee, Wis._
Lynchburg, Va.
St. Paul, Minn.—
Dallas, Texas
Paterson, N. J.__
West Virginia

59.8

of

1980

Nashville,

71.331

millions

in

basis,

in

AA

52.552

fLosses incurred

available

are

AA

57.151

*In

3.05

a

Housing

coupon

3.50 and in 1990 at 3.80.

rated

Powell, Kistler

Current

Authority bonds

AAA

Control

The Florida Development Com¬
mission Pinellas County Road and

Authority bonds bear the pledge Bridge Revenue bonds

Profit

Loss

Assets*

at

lOlYz to yield approximately
County 4.60 to maturity. The Port Au¬
Road
and
Bridge Revenue 5's, thority is an established business
success in Dade County
4.85's and 4.80's.
owning
A shrewd commercial banker and operating the outstanding In¬
friend, with good underpinnings ternational Airport and the Vene¬
of bond knowledge, recently tian Causeway. The Port Author¬
asked me why his trust invest¬ ity has a long record of good

Expense
Ratio#

Underwriting

Admitted

Earned*

$71,943

1958

Morris Joins

—

Net Premiums

Year

con¬

troversy in 1955.

Continued from page 2

ment Commission Pinellas

Rating

financial

and plant administrative

con¬

THE SECURITY I LIKE BEST...

20, and 30

exceeding $4 million.

Montgomery Ward & Co. and ad¬
vanced

the

Persi.stent adverse underwriting experiences of
the fire-casualty field, Ohio Casualty
outstandinS and most profitable oper¬

t

r

and

underwriting operations readily explain
why Ohio Casualty stock is among the few fire-casualty invest¬
ments which have been able to command a
premium price over
book value in the market.

Insurance Stocks

—

and Mrs. Clytelle
Sell vice-president, Peoples
State Bank, Tulsa, Okla.

Taylor, Rogers

1959 earnings
Stock dividends of 25% in 1953, 33Y3% in 1950, 25% in
100% in 1941 were paid by Ohio Casualty. A 4-for-l

and

believed to

are

Point Bank, Pasca-

Miss.;

■>

Presently this issue is selling at 12.5 times

of $1.92.
1947

15

.

split was executed in 1956. The 2,000,000 common shares
outstanding are widely held by some 1,800 stockholders; directors

BY LEO I.
BURRINGTON

piers'American
°L

24.

•

stock

Mrs. Charlotte
National Bank
Miami, North Miami,
Manuella Taylor, viceand trust officer, Pas-

Calif.;

Ontario

of

•'

Merrill Lynch, Pierce,

125.5% of liabilities at

Fenner & Smith

INCORPORATED

70 PINE STREET

K,

131

NEW YORK 5, N. Y.

offices here and abroad

16

Financial Chronicle

The Commercial and

(468)

Thursday, August 4, 1960

...

LETTER TO THE EDITOR:

THE MARKET
•.

AND YOU

...

i;""-_

■

STREETE

WALLACE

BY

'y' ■'

;

r

•

'.

'

Stocks

desul-

the

in

back

were

pattern that prevailed for
much of July this week after the
momentary glee over a trim from
90 to 70%'in the margin requiretory

had

ment

its

run

course.

:
-

The

The

Cut

Margin

when the
meetings

such

weekend'when

announce-

made

been

have

ments

in

the

past—saved the industrial average
brink

the

on

the

For

trouble.

of

this

time

second

year

the industrial average had worked
within

of

distance

touching

low

the

early in March
reading of a shade
over
599.
In May the area was
^approached again but the aver1960

which

posted

was

,

held

aee

the

above

low.

In

moment,

point

July the lows
which, for
indicate

would

a

of the low.

margin

flip

a

and 601.76

successful testing
Rnt

half

599 61

601.68

were

the

a

at

Writer Would

Change
Depreciation Accounting

the
Minuteman, alone both bave to build up their cash,
calling for a contract of nearly Crowell, however, did pay a 4%
a quarter billion dollars for re- stock payment last year,
search and development. It is also
the principal contractor on anSlightly Sticking Oils
other project to develop a piloted
The long-depressed oils stirred
space vehicle.
•
occasionally but without too much
,.rlil1nrspn,M1t»
follow-through although some of

Correspondent explains why he would like to
procedure wherein stock dividends would

^

approximating the

necessitates

& **•

out

ilist

ramp

Procter & Gamble was the nlustration of how easily a favored

leadership

the

the

discussion

at

first time

£or tbe

year

the

outpaced

sales

do-

always a pickup in mestic total.
general interest in the technical
Colgate's shares have been peaspects of the market when the destrian since last
year's stock
averages approach a critical level.
Spiit, The new ones onlv stretched
What made this more urgent this
their
1959_60
range
to 10 full
time is that the rail low. of early
points this week.
The yield is
in the year failed to hpid when
well into the 4% bracket, which
it went into its July
sl$e. So a is above average for a quality
penetration on the downside by jssue that
has
shown
steadily
the industrial index would be a
expanding sales and dividend inre-confirmation of the

bear mar-

ket

signal given in March under
the Dow Theory. Then it was the
rails sliding through a resistance
level after industrials had
so

that

There

was

don

4

ove;

test

in

the

up

still

much

wjth

years

history

shows

immediate

ket

of the

course

regardless

of

whether

mar-

it

is

goii g up or down.

And the patprofits on higher

lower

of

tern

a

The indi-

row.

as

is

speculative

Servel

the

Which

the

among

money-losing
on

a

once

rated

it

sold

appliance
tack.

new

in

line

and

stone of its revival

and

TT

...

until

of

Election
,

..

..

pickup

.

,.

..

indications

the

in

genera

along, the market
is showing what resistance it does
mostly on the psychological basis
economy

that

good
on

for

ones

that

nopes

the

money

steps to
With

years

the

m

an

market,

and

election year

will

managers

spur

normally

are

take

the economy. -

the

candidates

of

both

political
parties
committed
heavy defense spending, there
demand

some

after

long

a

for

the

period

some

good

9-times.

The

|n£0

share

this

case

is

£bei magnetic tape business,

automatic ice maker to be sold to

refrigerator

makers.

multi-million

sales

Both

have

notentials

Newly Dynamic Publisher '■*

neglect,

pany

Collier

that turned

is

also

a

corner

a

com-

when

concentrate

showings, tivities.

its

on

There

profitable

was

WU1 ^ °"ly

Partia"y taX"

hnnnH
pound

cent

the

^
vfoQ W^S• a^le+J°
to
$1.29, against the

net
same

It

per

share

period

reported

next

IS"
modest §ain of
47provision

in

year.

in

was

around 5%

made

for

after
$500,000

possible tax liability. The

pany

still

has

a

tax

com-

credit

would .indicate

of

th^t Boeing around $4.9 million to offset this
Airplane could show earnings of year's
earnings, so providing for
around
$3 per share this year a tax deduction in the
first half
which would give it a
price-earn- was mostly precautionary.
Last
ings
multiple of a conservative year's tax-free
earnings came to
10-times. To its
followers, Boeing $5.2 million.
is poised for even better parninao "
iV
.

in
the

the

l6S. 01

£

future

missile

sfnee

it

business
s

is

deeD in

wim
with




one

_

new

reserve

so

taxes

and corporate management recognize that the tax
exempt charge to income for depreciation in its present application
is in effect a return of capital' re-invested in the business for

the benefit of

the

for

shareholders, and is not a funded
replacement of the assets. In practice

reserve to

this

provide
be

can

done

the

capital accounts and the total assets (the
the

reserve

shown

was

as

a

in the days

same as

separate item

the liability
introduce a new
on

ample, let

take

For

ex-

simplified balance sheet and show the effect
b.'iof -one••year's operation:
A
us

a

...

.

xy

1

/"t

j_

£513/11Cl, IjlTTlIYlGl

Plant
Net

&

Equip

Current

$100,000

Assets.

Common

stock

$200,000

100,000

On Aug.

11

LeVine will

(1)

assume

the charge to income for depreciation is $5,000

become

Vice-President of Brand,

(2)

assume

the net income to be $10,000 and

(3)

assume

a

Herbert

West
mem-

-P

plant improvements

The simplified balance sheet
Equipment

&

+

showing the changes would be:

$100,000

deprec-—
Improvements

cash dividends paid

no

$7,000

arc

Common

5,000

4-2Vz%

stock

200,000

stock dividend

5,000

7,000

JL 0 £56 V1C6. JtiGS. 01

Net

xj
£

P

/"t

Plant

&

Equip.

Net Current Assets

fODD & 00.

flow

+ cash

James

K.

Woog on Aug. 15 will
Vice-President of Propp
& Co., Inc., 400 Park Avenue,
New York City, members of the
New York Stock Exchange,
become

a

il*

i

i

John W. Watling, III, has become
associated with the N. Y. City of120

of

Watling, Lerchen &
Broadway, as registered

Co.,

Current

Assets
in

nyi

For Model, Roland
'

215,000

Earnings

Total

Exchange has

a

215,000

regulation that

listed

any

stock dividend under 25% shall transfer from

a

is being distributed—I would not think that the
regulation

would

To show how this
of

theory would have worked out in practice
Company which has had no change in the
outstanding in the past eight years, and ad¬

shares

the

stock

below the

ager'

Dividend
-

.

-

With rederman, Stonehill
(special to the financial chronicle)

5%

8%

8%

1957

8%

1958_____

7%

1959

7%

Marian

Shs.

Outstanding

12,311,200

7.5%

1956

J

c-r

^lth Hayden, Stone
(special to the financial

chronicle)

LOS ANGELES—Murray

Pepper-

™an ls now with Hayden, Stone
& Co' 5657 Wilshire Boulevard,
He was formerly with Marache,
Dofflemyre & Co.

1952 a

Earned

Dividend

$1.83

$1.00

1.43

0.86

1.87

1.00

12,926,750
13,960,890
15,077,760"
16,283,980
17,423,850
18,643,520

per

number of

Boulevard

in

portion of
the tabulation

small

a

1.18

1.00

1.63

0.93

2.32

1.00

1.35

2.60

Thus with the net income divided
among a greater
shares and with the same dividend
seven

U

.

1955
-

WHshfre

ending

year

capitalize all but

for

depreciation and in
earnings and dividends per share have been adjusted

Year

as general man-

Calif

would

reserve

for this.

Stock Exchan§e,

BEVERLY HIT T S

Starting with the fiscal

dividend

accumulated

1954

U/UL

from

hold.

1953_____

9025

10,000

income

a surplus account to the
capital stock account an amount equal to
the market value of the shares
being distributed. As in my sugges¬
tion this is a return of
capital and not accumulated income which

Cuy, members of the New York

Co

205,000

5,000

The New York Stock

75%

Stone
oiune

ooated with Model, Roland &
^.?ne'
Broadway, New York

_

a/c

108.000

justed the figures.

A' B..0hdsl$ ba? b|c?meJas."

.

stock

Surplus

I have selected Deere &

"r°uSky Cjen. Manager

,X7.

(net

Business

Total

number

'

Earned

Statement)
Net

Res. Reinvested

rep-

resentative.

Common

7,000

corporation paying
\\7

Wlth Watling, Lerchen

102,000

100,000
15,000

—improvements

in

of

a

profession

o

10 £)0 V 100.

ac-

something of

likewise

provide that a portion may be charged to income
during the estimated life of the asset. However
management, hard pressed for funds for capital expenditures and
expansion, has used the "cash flow" retained in the business as
additional capital. Therefore I am suggesting that the
accounting
before

it

disposed of the money-losing
magazine business and decided to

and

side of the balance sheet), the asset side will
category, namely, Reserves Reinvested in the Business.

T7? AA

tn

add to the established and profitable old line of Burgess.

Crowell

the

out and

wear

cocktails,

and

the

development costs. The
For the first half of the vear a
heavy write-offs ap- pre-tax increase
of 25% in earnparently has ended and first half
ings dwindled
to
a
far
more
period

dinner

glamour ones of the
day, and into a new product, an

*

a

in

for

when

fice

expansion

0f

one

was

group was capable of an occasional shock, as when Lockheed
omitted its dividend, but this was

by

year.
have

called

including
is $10.00.

earn-

to

The

offset

thia

at that rate would
price-earnings multiple of less

than

aircrafts

of

expected to produce

Servel
a

come

election

is

in^s of around $1-50

Factor

definite

some

good

a

Burgess

is

by declaring annual stock dividends in an amount approximating
the annual charge to income for depreciation. As this will increase

its

The key-

was

where not prohibited by governmental agency
for depreciation has been changed from
liability side of the balance sheet to a deduction from the
capital assets. Why has this change been made?
The taxing authorities recognize that plant and
equipment

annual

T)

companies

until

economy

took off

was

"sick"

return

a

appropriate capital asset. Because this policy
financing at the time of replacement—a new theory

—Res for

nature

As

fund, it

meeting on
Sept. 14 at the Starlight Roof of
the Waldorf Astoria Hotel. Tariff,

A Speculative Laggard
a. more

lives.

reserve

the

Plant

Of

useful

a

In recent years,

business

and

in

of depreciation
accounting
technique in practice.

Customers

their

dividend, moreover, should Grumet & Seigel, Inc., 49
over by earnings _33rd Street, New York
City,
bas in the last four years.
bers of the N. Y. S. E.

moment.

is

The

of

hold

be covered twice

was
acquiring
Battery.
This company
had a long record of profit-making ability in good and bad times

that

dinner

will

three

pervading the halfyear reports is hardly conducive
to
good
market
action
at
the

sales

Association

concern

that changes
don't change

margin rate

last

this year expected to

be the fourth in

cated

possibility of another
still in the offing since mar-

the

the

set

already
signal.

each of the

for

creases

the

ket

The

their

a

regulation,

Brokers

financing at the time of replacement.

deduction from the

[The.views expressed in this article
'lows. Colgate, however, is far do not necessarily at my time comfrom out of business because of ode with those of the
Chronicle
this single competitive blow. It They are presented as those of the
is one of the three top firms in author only.]
the SOaP and toothpaste field and

foreign

of

necessitates

least
.

He

reserve fund and this

is no depreciation reserve fund because this portion of
the
"cash flow" has been re-invested in the business and the
so-called
reserve for depreciation is an
accounting entry only shown as

-'

is

There

depreciation

amount

depreciation.

there

Palmolive which dropped it to new

fac^ jagt

temporarily.

for

accounting
an

of capital,
available
intended to facilitate the
continuity of the business for the beneficial owners. In practice

SSSSEE EES-SSfS Customers Brokers
arra».*s asnsss &srssw,»w8 Annual Dmner
ended

end

(tax exempt)

Colgate-

competitor,

income

in

theory the periodical charge to income for depreciation of
capital assets and the credit to reserve for depreciation was de¬
signed to provide a fund for the replacement of these assets at

mediate
postwar era.
Amerada,
item can soar even in flabby mar- £0r jnstance, has been slashed 60%
kets. An endorsement by a dental jn three years of its own bear
group of some of the preventative market. Such a sharp trim in so
claims for its new toothpaste— short a time alone calls for a
first such endorsement on record rebound and chart patterns sup—set off P&G which raced to new p0rj.
thesis that it is at, or
peaks on multi-point gams.
near, the point for a reversal to
It also brought selling into its set in

principal

new

issued

In

they did in the im-

as

charge to

see a

be

Editor, Commercial and Financial Chronicle:

hunt

The

■

annual

claims that in practice there is no

bar~i
them, " to
some
analysts; ' have
for situations that reached levels where they are
haven't already discounted a good oversold and ripe for a recovery
Federal Reserve bit of the future was still an active even though they are a long way
are held,
or on one despite the lagging markets. frora
taking
over
the
market

Board
a

1

year

project,

surprise timing of the mar-

gin trim—it came overnight on a
Wednesday instead of on Thursday

ending
April 30 was one of the best in
its
history with good business
continuing into the new fiscal
year.
Like Servel, dividend ex¬
pectations
aren't glowing since
fiscal

Macmillmi's

shares, there is still

a

55V2%

share

on

number of

the

increased

pay-out for the

average

years.

■

My point in promulgating this idea of
changing the theory of
depreciation accounting and its practice it to give recognition to
hitherto hidden capital funds which are
looming very large in
the total capitalization of
many corporations.

July 26, 1960

d-;;

'X

C.H.HAINES

136 Goden

Street,

Belmont 78,

Mass.

Now With Wedbush
rsneciai to thf

LOS ANCFT

F«s

Wanetick

Three With

n

r

r#

'T/Ti

ANGELES, Calif.—Marvin
is now with Wedbush

V

DENVER, Colo.—Donald

&

ander,
Charles Schoenecke and
Ervin L. Turner have been
added
to the staff of
Copley and Com¬

Jwf' rteCenttly. ac„q"lred a Co.. 3838 West Santa Barbara Ave!
Tn
Irl m which
MacnuHan
He was formerly with Sutro & Co.
Co-y book publishers,
will and
Dempsey-Tegeler

&

Co

Copley

J:

pany,

818 Seventeenth

L.' Alex¬

Street.

Lowell, Murphy Adds
DENVER,
and

Colo.

William

—

A.

Jack" G. Cod:
Ringer

&
Company,
Building.

Inc.,

hav<

Murph:
Denver Glut

joined the staff of Lowell,

Number 5974

192

Volume

.

.

The Commercial and
Financial Chronicle

.

(469)

Sponsoring
Mun. Program

...Ahead of the News

selected to

been

IBA

FROM WASHINGTON

and

will

join

BY CARLISLE BARGERON

Public

Information

Program

on Municipal Securities
has been initiated by the Invest¬

ment

Bankers

position
staff

Form Bancroft Securities

on

(Special to The Financial Chronicle)

A native of

WASHINGTON, D. C.—An Edu¬
and

this

IBA

Aug. 15, 1960.

Association

of

Illinois, Mr. Becker

his

received

cation

fill

the

17

B.A.

degree

from

WORCESTER,

Mass.

Securities

has

with

Colgate University and his Ph.D.

Co.

offices

Parkway to engage in

from

Princeton
University. He
spent a year in graduate study at
the University of Paris, 1953-54,
under a Fulbright scholarship.

business.

Partners

Glick and

Samuel

formed

Chamberlain

6

at

Bancroft

—

been

a

securities
Norman

are

Glick.

America, designed to broaden the
Mr. Becker served as a foreign
Joins Shearson, Hammill
Republicans were terribly dis¬ market for municipal securities
Vice-President Nixon's great ac¬
(Special to The Financial Chronicle)
complishment so far has not been appointed with Wendell Willkie. and to foster a better understand¬ press analyst with the Public In¬
He made it a
his nomination and his very good
point to insult every ing of such securities. This activ¬ formation Office Headquarters, LA JOLLA, Calif. — George H.
acceptance
speech. He accom¬ Republican leader he knew. I ity calls for a new member on the United States European Command, Klein has joined the staff of
knew him and admired him
and
plished the nomination by accla¬
IBA staff in Washington to work Paris.
He has had
considerable Shearson, Hammill & Co.,
1125
mation and his acceptance speech worked very closely with him in
full time on this project. Mr. Eu¬ experience
in research, writing Wall Street. He was formerly with
has been hailed generally as un¬ the campaign but I couldn't un¬
Schwabacher & Co.
usually good. But his great ac¬ derstand why he took such an gene M. Becker of New York has and lecturing.
complishment was to take Gov¬ obvious delight in kicking in the
ernor
Nelson
Rockefeller into face every Republican leader who
came to see him.
camp. He and the New York gov¬
At that, he gave the
ernor embraced at the convention
Republi¬
and apparently came away lovey- cans their greatest run
against
Franklin

doveys.

to

going

Delano

Roosevelt.

accomplished this by

Mr. Nixon

New

the

see

York

governor on the eve of the con¬
vention.
They agreed upon
14

Outmoded Tax
Laws Imperil
Creation of Jobs

points that had to go into the
platform. Rockefeller could not
have
got these points inserted
himself. It took the assistance of
Nixon.
Now,
Governor
Rocke¬ America's job-creating economic
feller is committed to campaign growth is being stunted
by out¬
earnestly for Nixon. This is the moded tax depreciation laws that
only way it would be possible for
Nixon to win in New York.

delegates

Southern

were

very

Newport News Shipbuilding and Dry Dock Company
Profit and Loss Information for the six fiscal months

ended June 27, 1960 and June 29, 1959

critically hamper U. S. industry
in
replacing
one-third
of
its
machines

considered

technologi¬

disappointed about the C i v i 1 cally obsolete, a survey disclosed
Rights plank but it was necessary July 31.
if the Republicans are to
The survey by the
have
American
any
chance in the big Eastern Economic Foundation covered the
Southerners

The

states.

to

came

thus had to bury

realize this and

opinions
and

of

33

leading

business

industrial

organizations and
companies which presented testi¬

possible Republi¬
can
victory in the South. After mony before the 1960 House Ways
all, it takes about four of those and Means Committee hearing on
Southern states to make up for depreciation policies.
The
New York.
principal
conclusions
of
hopes of

any

a

remains, though, that these business and industrial lead¬
Senator
Goldwater
of
Arizona, ers were:
came put of
the convention with
(1) Unless the tax depreciation
the most laurels. He didn't win laws are liberalized to
give in¬
the money but the demonstration centive to
industry for investment
for him showed the admiration in in
new
machines,
the
United
which he is held.
States economy will fail to grow
To have given him second place fast enough to insure our pros¬
on
the ticket would have nulli¬ perity and to meet the challenge
fied everything Nixon stood for. by
the Soviet Union for world
The

It

fact

would

ticket

The

be

about

the

as

cynical

as

a

Democrats

charges

wrought.
Goldwater

that

industrial

(2)
not

leadership.
into

account

twin

the

doesn't

want to
get out of the problems of obsolescence and in¬
century are absurd. He is a flation which make it increas¬
very intelligent
man,
has made ingly difficult for industry to ac¬
more than a million
dollars in a quire capital for replacement.

19th

chain

of

department

Arizona.

He

has

in

stores

unusually

an

United States — bur¬
$90 billion worth of
and inefficient industrial
The

(3)
dened

by

gracious personality and is one of
men in the Seriate.

aging

the best liked

tools—will

His speech
asking that his name
be withdrawn from the

kets

for

double

usual

Presidency

his

reflected

gracious
self.
Goldwater
have
gotten perhaps 300

could
votes

but

when

he

couldn't

win,

form

withdraw

to

he

he

realized

took

the

his

plat¬

and

at

to

lose

home

mar¬

who
advantage
of

the

low

pay-

Fred
man

of

G.

Clark,

the

general

American

platform.

conservative

much more

was

than

the Democratic

platform,

and urged the conserv¬
atives in the
party to go out and
win with it.

Goldwater's
very
of

speech

could

be

effective because thousands

conservatives have been sitting

out

campaigns

on

the ground that

toward
The

depreciation

statements

made

Committee

House

—

allowances.
before

the

which

all

that reform was vitally
necessary—probably indicate the
results of the government's own

agreed

rr®
Republican platform and
didate

can¬
con¬

survey which would show over¬
whelming support for liberalized

servatives

contend

ever

depreciation changes listed in the

they get

conservative candidate

too

were

who

a

liberal. The
if

that

questionnaire.

in

the

country

liberals,

^e

snould

like

they

to

see

questionnaire and return it to the
I Treasury Department by Sept. 1.

outnumber

contend.
this

sort

of

ThS
libera]
the

lore
an

Republicans point

ey
ase

that

there

Democrats
there

are

make

against

a

st

vr

ve

to

one-third

the

country

Republicans, and
very

convincing

conservatives.

w?y' they have

P

figures

are

in

the

in

won

the

three conventions and twice
&one

November.

on

.

.

.

.

income

on

profit before allowances

.

.

.

.

.

.

.

•

$90,453,334

$98,645,765

.

•

$11,552,755

$11,630,690

.

•

•

.
.

550,000

600,000

.

•

$ 4,502,755

$ 4,730,690

$2.79

$2.93

profit—Amount

Net

profit—Per share outstanding at the close of the period

.

.

6,300,000

$ 5,330,690

...

.

Net

.

6,500,000

$ 5,052,755

long-term contracts

...

.

on

.

•

.

...

.

.

.

.

.

The above information is based in large part upon estimates and is subject to year-end audit, adjustments and
charges and is not necessarily indicative of the full year's results. The underlying contract estimates as at June 29,

1959 have since been revised, and those
The

Company records profits

recorded

are

on

on

as

at

June 27, 1960 will be revised hereafter.

its long-term shipbuilding

its other long-term contracts

as

subject to the provision of such allowances

contracts

billings
as

may

are

through

estimates

made thereon.

on

The profits

the percentage-ofso estimated and

be considered advisable, talcing into account the

completion of each contract, possible increases in costs not included in the estimates, guarantee liabilities,
The amounts reserved as allowances reflect the reductions in

stage of

unsettled contract adjustments and other factors.
Federal

and

state

income

which

taxes

formance of such contracts may

would

result

if the matters covered

by the allowances materialize. The

per¬

several years, and revisions in the contract esti¬
requirements during performance and upon final contract settlements have the effect of includ¬
ing in subsequent accounting periods adjustments necessary to reflect the results indicated by the revised estimates
and allowances. Such allowances aggregated $3,050,000 at June 27, 1960, $5,825,000 at December 31, 1959 (of
which $3,325,000 was applied as a direct contract adjustment in June, 1960), $4,175,000 at June 29, 1959 and
mates

extend

over

periods

as

long

as

and allowance

$3,575,000 at December 31, 1958.
A

substantial part

contracts

therefor may

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

be subject to profit limitations, renegotiation, and

to

termination

at

the

convenience

of

the Government.

Quarterly Statement of Billings, Estimated Unbilled Balance
of

Major Contracts and Number of Employees
Six Fiscal Months Ended

June 27,

Billings during the period from shipbuilding, ship
versions and

Equivalent number of employees,

$ 98,083,950

$103,562,571

$255,718,802

$259,314,870

16,762

13,155

unbilled at the

40-hour basis,
working during the last week of the period
....
On

ent

29,

1959

con¬

repairs, hydraulic turbines and other work

Estimated balance of major contracts
close of the period

June

1960

on a

July 22, 1960 the Company executed a contract with the Department of the Navy for the construction of a
at a ceiling
price of $32,405,000, and on July 13, 1960, the Company submitted an appar¬
$50,000,000 for the construction of 5 cargo ships for the United States Lines Company.

submarine

low bid approximating
The

income

Company reports income from long-term shipbuilding contracts
for any period will

on

the percentage-of-completion basis; such

therefore vary from the billings on the contracts.

By Order of the Board of Directors

Four With Bache

registration

bow

.

.

Deduct—Increase in allowances

a

showdown myself.
tb

Net

Polaris

will

Industrial and business execu¬
draw the clear issues
against the
Democrats, they will tives and trade associations have
win hands
down. The conserva¬ urged recipients to complete this
tives

.

Deduct—Provision for taxes

chair¬

just completed of the House testi¬
mony is of particular significance
because the Treasury Department
is now conducting a national poll
to determine industry's view

He agreed that
it

Operating profit

Economic

recriminations against the
"liberal" nature of the

no

shipbuilding, ship conversions

repairs, hydraulic turbines and other work

and

Foundation, said that the analysis

had

and

29,

1959

greater tax write-offs
to modernize their plants.
scales

He

name.

Gross income from

for¬

to

enjoy

competitors

running eign

the

continue

abroad

June

I960

completion basis, and

Present tax allowances do

take

Six Fiscal Months Endod
June 27,

to

victory
,




(Special to The Financial

July 27, 1960

Chronicle)

Calif—Robert
Franco, Meyer Katz,
Sidney I.
Mandy, Avrum M. Schwartz and
Herman Winters have been added
to the staff of Bache & Co., 445
North Roxbury Drive.
Mr. Katz,
Mr. Mandy and Mr. Winters were
formerly with Binder & Co. Mr.
BEVERLY HILLS,

in •Franco

was

Bowles & Co.

with

Thomas

C.

R. I. FLETCHER,

Financial Vice President

18

A Cautious Approach f;
To Electronics Industry
:

Continued from page

electronic

Many

programs.

companies

suffered

severe

earn¬

ings declines in 1957 and 1958 be¬
of this development. A suc¬

cause

cessful

have
of

summit

led

the

to

conference

similar

a

defense

could

reappraisal

will

not

Typical

companies heavily de¬
pendent upon military electronics
(more than
50%
of
sales)
are

processes

covers

broadcasting

ing

this

is

industry
medium

paradoxes

that

the

in

small

sized

companies try
hurry so that they

to get big

in

will

systems capability. Yet

the

have

a

that have such

ones

capability,
Bendix, Raytheon and
I. T. & T., are less popular with
such

as

investors
their
The

as

be observed from

can

lower-price-earnings ratios.
reasoning here, of course, is
with

that

turity,

the

attainment

growth

of

potential

ma¬

dimin¬

Consumer

Electronics, the

largest

dustry,
past
from

the

when

been

1950

this

management

and with this

while

But

for

industrial

vast

of

tent

such

dollars

electronic

devoted

product

that

time

of

year

it

has

im¬

exceeding

$2

new

reach

1970,

the $3.4

17%

or

dustry

total

slower rate

billion level by

of the estimated in¬

for

that

time.

The

of

long term growth,
its cyclical characteristics and in¬
dicated

increasing
competition
from Japanese imports, make this
segment of the industry less in¬
teresting than others. Best situated
companies
appear
to
be
those
good basic position in TV
growing participation in
military
electronics,
such
as
Magnavox,
Packard
Bell
and
a

and with

Motorola.

detail

Electronics

smallest but
ment

of

From

the

$350
of

area

million

billion

level

expected

is

the

fastest growing seg¬
electronics industry.
in

electronics

to

1950,

this

reached

the

last

reach

and

year

$1.8

billion

the

industry.

The

long term
outlook is indeed
promising with
E. I. A; projections
calling for a
threefold increase by 1970 to the
$5.4 billion level. Some consider

review

of

of the

in¬

clude

tubes,

vacuum

capacitors,

resistors, coils and, more recently,
semiconductor devices
(about
which

later), which

more

sential

elements

circuits.

tronic

to

reach

$1.3

$1.1

a

from

up

1950.

es¬

elec¬

was

year,

in

are

most

This

last

area

million

pected

of

It

is

ex¬

billion

this

S2.6

and

billion, or double,
by 1970. By and large, these com¬
panies have the greatest diversi¬
year

fication in the electronics

industry
they supply nearly all manu¬

as

facturers of end products regard¬
less of which particular segment
of

electronics

the

industry is in¬
volved. However, there is a rapid
obsolescence

quires

factor

which

great deal

a

for those

who

of

re¬

flexibility

to

stay on top.
semiconductor

are

Leadership in the
field, for example, was usurped
by newcomers from the logical
Recent
of

tube producers.

vacuum

developments in the

miniaturization

cuits

could

turbances

and

solid

cir¬

further

cause

in

areas

the

dis¬

in

this

Electric

has

transistors

entered

and

and

the

field

International

Standard

Coil

of

Re¬

juncture

to

diversify.

have

would

we

be

At

this

wary

of

conventional component producers
the solid state
physics com¬

as

panies
show.

now

solid

are

state

being

employed

in

puters

whereas

they

circuits

office

com¬

have

been

commonplace in military applica¬
tions for

a

number

field

new

of

computation
most

data

years.

The

acquisition,

and

analysis is al¬
direct descendant of tele¬

a

metry, employed
many

The

of

relates

be

by the military

years.

field

tronics

might

of

industrial

largely

termed

the

to

elec¬

v/hat

automation

about

seem

There
of
are

the

to

Product

several

are

steal

the

direct current but

current

to

handle

much

cussion,

they

as

areas

to

appear

greatest

growth

present

time.

become

very

it

closest

lower

tion

made

have

«5U

mnes.

i\ow

it

can

detect

returning from the moon
250,000 miles distant and

some

from satellites even further

is

Microwave

also

used

away.

in

navi¬

gation, guidance and control of
aircraft and missiles, communica¬
tions and air traffic control. About
the

of

long

distance

tele¬

traffic is handled by mi¬
crowave
(i.e., line of sight trans¬
phone

mission

horizon

from

to

horizon

relay

through

stations)
and
a
large portion of military commu¬
nications, TV, telegraph and fac¬
simile transmission is so handled.
has

Microwave

been

extended

the limits of the horizon
by the use of tropospheric scatter,
whereby signals are bounced off
ionized layers of atmosphere and
beyond

back

deflected

miles

500

to

earth

The

away.

far

as

DEW

as

line,

Texas

Towers, White, Alice, Pole
and other communications
warning networks use this

Vault

while

And

areas.

pos¬

vacuum

passed this year by
semiconductors
in
total;
sales
vacuum

The transistor

tubes.

three

scientists

tories

12 years ago,

is

devices

of

cause

This

is

time

the

able,

blos¬

partly be¬
required to

device

reliable

dis¬

have

to
tun¬
IBM

tool

that convert the sun's heat to elec¬

_

$5C0

million,

with the $1

level

considered

three

to

in

five

possible

requirements

by

the

tremendous

of

the

military,

particularly

use

the batteries in

of

electricty, and thermo-electric
heating and refrigeration, where
it is possible to convert electricity
to heat when current is applied
in one direction, and to cold when
the

flow

While

equipment

require 100,000

may

transistors

computer
market

for

also

thousand

The

large

a

semiconductors,

installations

large

hundred

diodes.

and

is

field

with

using 'several
semiconductor

devices. The field is

4

mine

which

promising

so

other

At

reversed.

of

them

will

emerge

the present, the top quality
in the solid state field is

Instruments,

followed

closely by Transitron.
Fairchild
Camera, to be merged with DuMont
Laboratories, had been a
speculative favorite, but we re¬
gard it

less

as

of

cause

(to

be

attractive

added

semiconductor
smaller

more

are

it.

to

is

leaders.

as

of doubling capacity panies,
Rectifier
companies are being

process

attracted

or

current

doing R&D work in these new
fields, it is still too early to deter-

Texas

control

of

number of companies are

a

missile

ground

satel¬

our

to

issue

its

power

generators,
heat directly

convert

can

for
its missile programs. An advanced
with

some

to

thermo-electric

which

within

The'growth
been sparked

years.

tricity and already in

lites;

billion

recent years has

we

effort.

merged

of

its

Among the

speculative

favor

over

be¬

now

dilution

com¬

International

General

with

Transistor

General

In¬

struments).
There

are now

close to 100

struments

and

potential

The

Expects Two-Fold Increase

tubes

such

as
GE,
RCA, WX,
etc., who had to be in

tween

the

Sylvania,

those

of

this

to

can

be

in

very

nar¬

the

ment

row

pencil-like beams

over

line-

industry

years

expectations,
great

has

largely

strides

over

exceeded

because

of

field
in

vacuum

strides

puters to

and

that would

control

of

electrical

through

solid

materials

moving

parts,

vacuum

in

solid

current

realizing

blossom

without
gaps

or

their invest¬
tubes.

These

companies seemed to have moved
slowly,
however,
perhaps
not

physics. Solid
state
tech¬
nology
involves
the
movement

made

protect

greatest

the

that

rapid
would

cause

forth

as

success

technological
be

this
it

made

and

industry to

now

has. The

has been achieved

by newcomers, such

as

Texas In¬

could

growth

large corporations
hooking up their
plant networks-, via

many

as

nation-wide

communication.

microwave

install

service

and

cialized

outside

from

panies

microwave

with many of the spe¬
components
procured

systems,

sources.

include

Raytheon,

These

com¬

RCA,

I. T. & T.,
Rand, General

Sperry

Telephone,
Western

others.

Bendix
Electric,

With

wave

field

tube,

the

these

is

through the

power

heart

of microwave.
magnetrons, kly¬

include

These

strons, travelling wave tubes and
others.

Many companies are in
field, specializing in one or
more
types of tubes, including

this

most

the just mentioned

of

com¬

panies and Litton Industries, but
again the prospects of these com¬
panies are governed largely by
other

rian

activities.

Associates

This
and

Va¬

leaves

Eitel McCul-

lough as the more logical vehicles
which to participate in this
field. Varian
we
regard as the
quality issue, while Eimac is more
by

speculative.
The

method

second

partici¬

of

pation is through the companies
making microwave components,
instruments

Many
the

and

equipment.
this but
interesting include Potest

companies

more

are

in

larad, FXR, and Microwave Asso¬
ciates.

Hewlett

also

is

Packard

important in this field, and is un¬
doubtedly the leader, but its ac¬
tivities

broad

in

instrumentation

are

so

to preclude it from con¬
sideration as a microwave com¬
as

Electronic Instruments

at

products

controls.

this

new

interested in

in

Solid State Devices: The
growth
of
the electronics

past five

are

and

entirely

pany.

com¬

panies involved in semiconductor

area,

license

an

Corp.,
GE,
Philco
and
companies,
has retained Dr. Esaki as a con¬
microwave is a relatively small
sultant during his one-year leave
proportion of their total business
of
absence
from
his
Japanese
and
their prospects
are
largely
firm.
determined by other factors.
Other developments in the solid
Perhaps the most interesting
state field offering great promise
area of participation in the micro¬
are solar cells, solid state devices
microwave speeds which the
nel diode will permit, and

into a work¬
and the time
required to learn the manufactur¬
ing techniques which would pro¬
duce
reliability
at
reasonable
price. Also a factor is the time
required to design into circuits
such a revolutionary concept. In
1955,
total
semiconductor
sales
amounted
to
about
$37 million,
but
by last year had increased
nearly tenfold to $365 million
with a greater increase in units
because of price reductions. This
year sales are expected to reach
the

develop

going

of

desirous

dustry,

Labora¬

soming forth in many and varied

applications.

is

and

only 1% the size and utilizes 1%
power. Earliest application
might be in the computer in¬

but only now

sister

its

and

it

Bell

at

than

faster

transistor

of the

:

invented by

was

the

with

As

times

100

conventional

a

volume, 1960 will be the, best year
for

pilot produc¬

device.

create

it

is

device

tubes will be

ever

transistor producers

FCC

der

The
microwave
industry
is
will probably take
presently a $1.5 billion industry,
many years for the tunnel diode
with the prospect of doubling by
to be designed into enough cir¬
1965.
There are about a dozen
cuits to make for significant de¬
mand figures. In some uses, this companies that design, assemble,

entirely new products and
markets
in military and indus¬
trial

this

of

transistor,

consumption,

power

the

is

utilization.

commercial

to

tunnel

a

material,

have already begun

reliability,

greater

compactness,

were

solid

the

of

Most

if there

as

were

through

Microwave Industry
activities, ranging from full scale,
broad
line
Microivave
producers,
through
technology
is
an
involved
are
utilized in two or companies specializing in certain area of
electronics that relates to
more
of the major segments of types, to those still
the
experiment¬
generation, transmission and
marketing areas discussed above, ing in the laboratory. Among the receiving of
extremely short radio
They
are
solid
state
early
entries
into
this
field
were
waves.
In
the
devices,
electro-magnetic
microwave
manufacturers
of
vacuum
equipment,
and
in¬ the
spectrum,
microwave
lies
be¬

state




to

echoes

can

that

detailed

the

the

%

zu

amounts

larger

with

true,

office, the store, the factory
refinery.
It
includes
data
processing equipment and com¬
in

could

Thursday, August 4, 1960

and

hearing aid. But because of their

and

industry

more

the

the

perform paper work

years

vacuum

transistors

for

market

the

diodes

and

the best known
commonplace examples being the
been

in

Areas

product

electronics

worthy of

of the

offices, banks, and stores (gen¬
erally considered
the
Office

five

the

Unlike

now.

rate,

switching purposes.

that many existing producers

almost

only

for

and

rent

Rectifiers also convert alternating

■

are

directly related to progress
military electronics, but tend
lag by five years or more. Thus

way

more

steps

Various

field

circuit to another. Diodes are

one

conventional

component field. That is why such
a component producer as
Sprague

ultra-conservative.

Developments

competitive

very

from

tube, semiconductor devices have
almost
unlimited
life;
hence,
valves, allowing current
little replacement
to flow in one direction but not there is very
the other and are used to convert market. With much larger capacity
alternating current to direct cur¬ and a slowing down of the growth
one

and

dustry requires a word on sup¬
pliers of components. These in¬

taken

out¬

segment

be

erally used to amplify small sig¬
nals or to switch current from

.

30%.

the fastest.

up

purities in the material, generally
Sees More Competition Ahead
silicon or germanium, semicon¬
While the prospects for growth
ductors can be given properties
that can be made to vary widely for this segment of the industry
are extremely
favorable over the
according to the manner in which
intermediate future, there are in¬
they are connected in an electri¬
dications
that
this
business could
cal circuit. Transistors are gen¬

semiconductors
this

out

major broad segments

sistance

doubled,

broad

By

sible

round

To

pacing

other

copper

glass.

longer life, lower heat generation,

Reviews Components

this year. Over the
past five years
this segment
has
any

later.

Components:

heirs, the

Industrial

and in¬
introduc¬
ing resistance in the form of im¬ moving
like

like

sulators

transistor radio and the transistor

Certain

radio

the next

of

that

between

lies

to

electronics and acting to minimize

declining

products and gradual
growth of color TV, it is expected

for

money sav¬

more

and

tively termed semiconductors be¬
cause
their
ability
to conduct
electricity

unquestionable

the

pulling
place. The success of these com¬
panies has pulled in others from
the automobile, aircraft, electrical
and other fields, with Fairchild
Camera
and
Clevite
probably

collec¬

tors, diodes and rectifiers,

.

and by Transitron, now
ahead of GE for second

leader,

are

area

.

competitive. Further, such devices
method for part of their require¬
of will probably also encounter com¬
ments.
At present, the military
equipment already exist, they can
petition
from
new
devices
now
power and can deliver power at
be tapped only over a period of
is the largest user of microwave,
constant
amounts
to
electrical in early development stages, such
with industrial uses confined
time,
i.e., when industry builds
as
tunnel diodes, solid state cir¬
circuits.
new plants or modernizes existing
cuits and plastic film circuits. Of largely to commercial communi¬
Semiconductors, or more speci¬
ones.
This
cations, TV and air traffic con¬
segment
of the in¬
these, the tunnel diode, invented
trol.
But indications are that the
dustry, consequently, will tend to fically, transistors, have generally
by
the
Japanese
scientist,
Dr.
been thought of as devices which
microwave
follow
spectrum
industry
capital
expen¬
may
be
Esaki,
and
so
named
because
cur¬
would take the place of vacuum
ditures, but with a higher con¬
opened up to industrial users un¬
rent passes through it so rapidly
tubes.
In many cases, this
has

$250

in

a

knowledge to make

decisions.

ing

markets

billion

to

know

to

rapid time and

more

provement this year. With the ad¬

this

per¬

in¬

gradually,

dition of

of

and,

more

great deal more about its business

billion last year with further im¬

is

costs

importance, time.
information
generated
en¬
of

the

segment accounted for

Since

proved

$1.5

other

and

haps

for

peak,

consumer

1955.

with

offered
savings
in

equipment
marked

this

to below that level until

to

in¬

other

of

billion, or close to 60% of
industry's sales, it declined

big

and

static

segment

has

sec¬

rising from the doldrums where
TV pushed it, and hi-fi and stereo
adding new elements of support
starting
last
year.
From
1950,

the

It

com¬

interesting sections of
this segment will be discussed in

10 years, with TV

SI.5

and

cyclical cnaracteristics..

ishes.

ond

TV,

The

represents

ables.

and

circuit

types.

tory

the

in industry.

struments and controls of various

The

of

control pro¬

equipment,
includ¬
non-military microwave and

sociates, American Bosch, Labora¬

One

and

munications

labor

sales).

which
we
equip¬

here)

duction

Raytheon, Collins Radio, General
Precision,
Bendix,
Varian
As¬
for
Electronics,
Giannini
Controls, and most of the small
companies ($10 million or less in

Industry

cover

ment to monitor and

closed

effort.

this

in

conductors

Equipment

3

devices

struments,

best known
transis¬

heated filaments. The

some

Financial Chronicle

The Commercial and

(470)

frequencies of TV and

infra-red.

transmitted

Microwaves

of-sight paths. Their applications
are
many but perhaps
the best
known is radar, where the
signal

bouncing back

from

an

object

can

be used to determine
the location
and
distance of the

object.

the

In

days of World War II, radar

could

detect

a

plane

or

ship

at

Instruments

and

Controls: This

segment of the industry is
broad and lumped together
various

quite
in it

laboratory,
instru¬
ments, and instruments used for
process control.
The market for
electronic
instruments
is
esti¬

are

analytical

types

and

mated at about

the

of

testing

$200 million;

while

market for instruments of

all

including
non-electronic
devices, is probably around $2

tvpes,

billion. The electronic type instru¬
is
continuously ; taking a

ment

larger

share

conventional

of

this

market

instruments

are

as
be¬

coming less adequate to cope with
today's rapid technological devel¬
opments,

calling

for

the

testing,

Number 5974

192

Volume

.

.

The

.

Commercial

and

Financial Chronicle

(471)

analyzing for qual- been bid

measuring and
control

•tv

•

—-

at

purposes

various

,Les of research, manufacture
!r orocessing.
The top quality
company in this field is Hewlett

to 40, 50, 60

up

times

p

of

growth;,

(2)

the

3

pUesofstoik

such as temperature, pres-,
sure, humidity, flow, liquid level,
Theie have
etc. Most of these control instru-,
ments are pneumatic but in recent casioned

<

,

,

ables

puter which, with the
it has in its memory,

instruction
make

can

decisions

split-second

com¬

and

feed

OTl/^IT TT"\ TfTYT

1

~

series

\

of

mi

permutations

binations

CORNER

,i_

and

seveial

maiket

the

com-

have

versities

peculiar

reacted

to

to

^

Mr. Ferguson

before

vari-

Sometimes

™

.

H

t ,9Yllt9l
iLLcl vyctjJIUcXI

fifoolr Offa"mrl

kJUULyiv

V/liClCiU.

proper

industries served or through mod¬

ernization of existing processes.

equities

as

a

group

are

close

to

all-time

high price-earnings ratios.

-

This segment of the industry,
Justification for present PER's
consequently, tends to follow in¬
seems
to lie in the almost unidustry capital expenditures. Prin¬
Versa! expectation that per-share
cipal companies in this field are
earnings will continue to grow at
the Brown Instruments
Division
of

Minneapolis Honeywell, Foxboro, Leeds & Northrop, Taylor
Instruments, and to a lesser ex¬
Fischer

tent.

&

Porter.

made

Foxboro

an

Recently,

arrangement

with R. C. A. to supply electronic

instrumentation

and

computer

systems to

industry, while Leeds
Northrop made a similar ar¬

&

rangement with Philco.

Minneap¬

olis Honeywell has its own com¬
puter
capability,
while
Taylor
Instruments takes the approach
that computers are

now

ly standardized that

can be
component for a

purchased

as

complete

system.

a

Foxboro

been considered the
pany in this

struments

sufficient¬

they

has

quality

com¬

field, but Taylor In¬

seemed

to

offer

more

value per investment'
still does
despite a

dollar, and
sharp run-up

in recent months. At

ulative
has

level,

some

more

a

Fischer

appeal

as

&

spec¬

Porter

low-price

a

vehicle.

While there
interest in this

going

other

are

areas

industry, the fore¬
destined

appear

of

greatest; growth

for

30% to 40% annual rate for the

investment or
situation. Then they

monlto^at a°OTicetof1'$8C0^i
s'lare. The offering

and

com*

of

stock.

mon

ecutive

Capital Corp. with
offices '; in

"

Beach, Fla., is

1959

as

West

closed-end,

a

ex-

of

non-.-

because

in

changing

of

Business

ment 0f land

or

industry. The

will

remains
tor
m

our

number

one

selection

long-term growth investment
this

the

industry.

only

res

one of

that has

versity
and

of

has

selection

It

the

achieved

it

probably

newer

products

done

is

and

broad

than

di¬

markets,

through

rather

compa¬

careful

out

of

is

it

of

or

the

chaff

that

tions,

men

recommendations

the

and

know

spot

their

of

they

as

are

soon

mouths

they

as

continue

and

that

to

believe

Tjl
X

U

•

T

represents one of
a
the great industries of the future x\X(3

\Tnf DQ

XN ULt/O

rVP-P^wvrl
L/XiC/loQ
■

_

#

years

the

past

that

seems

fi¬

action there must be a re-

wide group of securities dealers,

action"

n°i;es

e

are Priced

nucleus

The

issues

account require-

depending upon
ments.

of

numbers

and

is

almost

someone

of

such

a

the notes falling

outstanding

ket

has

due on Aug. 15,
indebtedness of the

meaning

skill

and

an

this

neglected.

is

indictment

an

of the current situation

as

to what

public wants, reads, and acts
upon, when it buys or sells com¬
mon

stocks.

come

today

Investment

among the
and
smaller

medium

almost limited to

those

for

in¬

people of
means

of

is

retire¬

ment age;

and simon pure invest¬
ment therefore has been
gradually

losing status
among
individual
Litton (Diversi- Home Loan Banks will total $1,investors.
Institutions
and
the
Instruments (Semi- 273,115,000.
mutual funds have taken over the
Varian
Associates
investment function to a gradu¬
and Hewlett PackInv. Women
ally increasing extent. Back in
(Instrumentation).
As secHAM
I
the twenties when I broke into
tier back-up issues we would
IO HOlCi l^unCflCOiA

fied), Texas
conductors),
(Microwave)
ard

ond

this

happen¬

other

companies?

considered opinion, the
a security
salesman

my

duty of

is

assist his

to

]
>

customer

to

select

speculations and investments that
will provide him either with the
most income or the
greatest

profit,

both.

or

That's

why people in¬
vest—to make'money. If you
ap-

of

to

who

acquire

is

inature

background

a

market

information, and spe¬
information; and who then

cific

make

can

what

his

up

stocks

mind

own

will

be

the

to

as

popular

investment and speculative favor¬
ites

is at

do

a

least

better

job for his customers,

if

reads

he

assimilate

can

prepared to

good

all

day

can

to

become

accomplish
f

stuff

after

believes most of it.
he

the

The

by

best

so

thoroughly

he

day and
that

doing is
confused,

and the results he will achieve for
his customers will be
largely un¬

successful.
This

is

the

day

faddism

of

in

the stock market. The investor

or

speculator who fails to give suf¬
ficient weight to this superficial
but

compelling impetus

over

stock

prices
will
regret
it.
Unfor¬
tunately; i when people invest or
speculate

turning

in. securities, they are
hard earned
cash

their

of

the
itiative of
upon

its

judgment
ket

that

reflect

this

country

as

depends
the

and

resources

people—also

well.

stock

A

fluctuates

will

in¬

their
mar¬

always

what

people think — not
are worth,
or what
they are. Mature thinking can be
applied to investment as well as
what, things

speculation, but meanwhile the
faddist and the propagandist can¬
not be ignored.

the

would be

group

In
first

welfare

without
with

been

not

Possibly

fered today and the retirement of

stocks.

bonds

into
a
fluctuating
and
highly
judgment
is
rewarded
hazardous piece of property. This
when you are a good
isn't
a ° game,
investing
other
guesser as to which industry will
money.
It
is a serious
be popular, and which stocks in people's
that industry will attract public business. Salesmen, analysts, un¬
financial columnists,
fancy. The faddism in security derwriters,
and the public itself could be¬
selection is today a fact.
Earn¬
come
a
great deal more mature
ings, balance sheets, and even a
in
regard to this
activity. The
good financial record
over
the

at 100%.

Net proceeds from the offering,
together with current funds of the

Gives His Own Selections

corporate

nancial

Public offering of $160,000,000 of
accurate sense of
timing, plants
3Vs% consolidated notes of the
the seeds in the press, in
maga¬
vocate a policy of caution. Elec- Federal Home Loan Banks dated
tronic issues in the past have been Aug. 15, 1960 and due April 17, zines, and among those who will
known to have had severe market 1961 was made on Aug. 3 by the ultimately convert their cash into
stock.
This
is
the
day of the
corrections and another one could Federal Home Loan Board through
be in the making. There is a basic Everett Smith, Fiscal Agent of the propagandist, the advertiser, and
the columnist, and the stock mar¬
law of physics
which says "For Home Loan Banks, and a nationevery

particularly

insurance

primarily

unless

tional and

open

in this business would be the first
to admit their own limitations and

years

instituindividual, should have
good representation in it, we adportfolio,

every

D

XI. Xj. X).

on

put their pen to
the paper. The dedicated
analysts

it

we

placed

or

During

electronics

the

Keep Your Eyes Open

attractive

investment situa¬

several

While

turned

who labor at

shortcomings.

stock,

is

substantial grain

a

doings, and who are expected to
come
up
with
suggestions and

company's
probably
be

common

taking

are

Analysts Are Aware of

ory services. While the

of

than

than

speculative

of equity or con976,664 shares
equity securities, indi- $1 par value,
eating slower per-share earnings
growth than for sales.

securities,
Who buys

salesman

the task of
reporting the financial

Also,

that

t s

-v

DUTTON

surely enough

salt.

equity securities, by
long-term loans, and by
furnishing consulting and advis-

the form

tum¬

Their Limitations

tures or other

vertible to

prevalent

come

not)

Certainly the

making

D ex- arise.
financing will
Upon completion of the current
be needed to meet expansion refinancing, outstanding capitalizaquirements
and
this
generally tion of the company will consist of

investing

also

reflections

daily with

Good

ticipate in these concerns by purtheir convertible deben-

will

the

penditures.

amounts
and

market

these

(believe

chasing

made principally in small business

to

tinned need for large R &

takes

a

am not surprised that more
serious
minded and independent
thinkers,
as well as investors
and salesmen

par-

com- concerns operating in the State of
rapidlys Florida, it may make investments
and
con- in
other areas as opportunities

next

been

the

in the electronics

company

several years. Mention
Basically our philosophy toward Home Loan Banks, will be used to
should he
made, however, of a certain in- this group would be to accumulate retire $162,000,000 notes maturing
diviaual issue not included else¬ top quality issues on a dollar on Aug. 15, 1960.
where.
averaging
long-term
basis
in
Upon issuance of the notes of-

Litton Industries has

conclusions

some

areas,

technology,

to

frankly, I

Investment

increasing

many

a

Game

a

speculative
come

writer who prognosticates is
not an ea-iy one. Quite

1958

Whether this will investments

able

r

bling into the financial press, mar¬
cept this very plain statement of
ket letters,
and special releases fact then
it also must follow that
daily.
The lot of the financial the

Palm

Federal Licensee under

a

Small

Act

at least

petition

the

public. The tendency to give "off
the cuff" opinions as to the trend

marks the first

public sale of the company's

be attainable is

question-

at

decision, and offer their opinions

next five years.

t'~e

the

over

a

amazed

am

ticular

The company intends to
regulatory ■ and
ial.
interrupted
only ize {
investments in small busi
control instructions.
Demand for
temporarily by the general market
ness
concerns
this type
of equipment stems decline earlier this
engaged either in
year and, more
activities related to the
mainly from expansion by those
developrecent.y, electronic

the

back

I

tejnerity
with
which
certain
analysts, researchers, and writers
on
financial subjects
glibly make
a • superficial
analysis of a par¬

01*1019

_

themselves, the

The current electronic market has
been in a strong
upsurge
since
last
summer,

BY JOHN

This Isn't

ous investment groups recently,

November

ad-

"y

different package for
almost everyone could be devised,
—
-J

.

issues

k

a

-diversified
management
investheld and by pement
company registered
under
nodic
investor
reappraisals
of the
Investment Company Act of
prospects and prices. Also, indi- 1940.
It was licensed in
vidual

T

SECURITY SALESMAN'S

and systems) and Laboratory for Electronics (Communication and
navigation). Through a

Florida

be^.n

electronic controls have been mmtary-polnical

equipment is tied in with a

Barnes

and

sre'? m*'nature'
by developments in

becoming more widely accepted.
In some types of installations, this,

scanner)

and anticipated nents

f

late

nor

nf
olontvnviint"
followed by Beckman public acceptance of
electronics
Instruments and Perkin Elmer
^standing marvel-of the
also in infrared). •
?q\
Ca
a
decac.es to come;
(3) the eagerness of investors
The market for electronic in¬
and
struments for process control pur- speculators to participate in
this
field
noses is slightly over $100 million,
where there has been outout of a total control market of standing market
performances; (4)
the
mistaken
about $1.8 billion, including elec¬
notion
that
e'lectronics
in
tric
itself is an
pneumatic and hydraulic
industry and
that
controls. These instruments
are
any company
participating in
used mainly in industries which it should share in its great expected
process raw materials
into fingrowth; (5) the stockholder
shed products, such as the chem¬
ical petroleum, food, dairy, paper,
rubber and textile industries. They;,
are labor saving as well as quality value, reflecting the great demand
control devices. Generally, these
instruments indicate, record and plies of stock. S1TOU fl°ating SUP"
;
control a series of process vari¬
The rise of electronic stocks
has

Packard,

years

including ontical

33 =a Jtsis

19

business,

people

bought

in¬

Roy Feltman
With Hay, Fales
Hay, Fales & Co., members of the
New York Stock Exchange, an¬
nounced

become
in

its

that Roy

S. Feltman has

associated

with

the

firm

Over-the-Counter

Trading
Department, which is managed by
his father, Irving Feltman.
The
son was
formerly associated with
Goodbody & Co.

include
Beckman
(Instrumenta- CHICAGO, 111.— The Investment
At the same time, the firm an¬
dustrial,
Through a philosophy of
railroad,
and
public
tion),
Transitron
(Semiconduc- women of Chicago will hold their
nounced the removal of its offices
extending its nucleus of electronic
utility bonds, yielding from 4 to
tors), Magnavox (Quality TV and summer
luncheon
on
to larger quarters at its present
Saturday, 6%. These bonds were of
eciinology into any industry in
good
good
military electronics), and Aug< 6> i960 at the Edgewater
vhich it can
quality and there was hardly any location, 71 Broadway, New York.
make an

stance.

important

ontnbution

McCullough

Eitel

(Microwave).

through
new
and
Beyond this we would prefer to
products, it is now repre¬ use the
package approach for the
sented in the fields of office many medium to smaller compa¬
quipment, data processing, minies which appear to offer excelovvave
etier

components and systems,

a^on anc* communication for
Mrcraft and missiles, coun-

hf\u
t

,

-measures,

'

'

commercial

com-

nicati°ns and facsimile
equip'

Co

;

^ith Qppenheimer, Neu

luhinh

a

parrv

A sample

risk

would

be

higher

of such a package bers of
(Microwave), change,

FXR,

the New York Stock Exannounced that Leonard

9

Electronics

have

been

performers
and

years,

equities

(Various,

including

(Information storand retrieval). Others which

have




age

in this manner in-

could

be used

elude

Microwave

Associates (Mi-

crowave), Baird Atomic

income

tax.

(Special to The Financial Chronicle)

The

professionals

|3een

added to the staff of

r. w. Pressprich & Co., 75 Federal

(Various, Street.

sketchy

will

know

they

remember

what

used to have

before
There
to

was

those

an

and

days.

I

offerings

mean,

the

when

activity

we

in bonds in the days

present

save

day income taxes.

incentive for people
in bonds in

each
a

I

to

on

Today

the

accent

is

price movements in

won't
his

argue

own.

the point—

But

seriously,

large part of the market letters

and financial comment ground out

today

deals

Now With Harris,

with

price appreciation

the

speculative

possibilities of

Upham

(Special to The Financial Chronicle)

LOS
W.

ANGELES, Calif.

West

Harris,
Sixth

merly with
Co.

and

—

■,

George

has become affiliated

Schemel

with

invest

on
capital gains, which is pos¬
sibly a polite term to describe

stocks.
;

BOSTON, Mass.—Melvin O. Arongon

and

gambling

rr

Joins Pressprich btatt

ASW) and Itek

Market Action

popular

Room.

^Wagner's now—
w. h
a ietoisteiea reprc

further period of time.

SDpr.fC*r?n*c stoc*s
^'oter market
the ri
pas* several
tore

Michigan

skimpy

exploration, Giannhri (Instruments and Conand medical elec- trols)
International
Rectifier the firm as
growth has been above (Semiconductors), Taylor -Instru- sentative.
a
should continue so ments (Process control), Loral

°v

—

but Qppenheimer, Neu & Co., 120
degree of Broadway, New York City, mem-

geophysical

1Cs:
for' ?a?e

Hotel

Forsythe, Smith Barney & who now see the National
Daily
is in charge of arrangements, Quotation bond sheets with their

jrene

Ir'tS "Tecfwe Heldt

trJ? Research
av

Beach

Upham
Street.

'&
He

Co.,
was

523
for¬

Shearson, Hammill &

Quincy Cass Associates.

Holton, Henderson Adds
(Special to The Financial Chronicle)

LOS
D.

ANGELES,

Joye

has

been

Calif.—William
added

to

the

staff of Holton, Henderson & Co.,
210 West Seventh
Street, mem¬
bers of the Pacific
Coast Stock

Exchange. He

was previously with
Dempsey-Tegeler & Co.

18

devices

To Electronics Industry
Continued from page 3

Equipment

some

will

programs. Many electronic
companies suffered severe earn¬
ings declines in 1957 and 1958 be¬

of this

cessful

development. A

summit

conference

suc¬

could

have

led tp a similar reappraisal
the defense effort.

of

not

Industry

which
we
and equip¬

here)

cover

ment to monitor and control pro¬

duction

processes

covers

broadcasting

industry. It

in

and

com¬

munications

equipment,
includ¬
ing non-military microwave and
closed circuit TV, and other in¬

Typical companies heavily de¬
pendent upon military electronics
(more than 50%
of
sales)
are

struments and controls of various

Raytheon, Collins Radio, General
Precision,
Bendix,
Varian
As¬
sociates, American Bosch, Labora¬

labor

tory

for

Electronics,

Giannini

types.

The

marked
other

and

haps

of

The

offered
savings
in

equipment

represents

costs

and,

time.

generated en¬
management
to
know
a

ables

Controls, and most of the small
companies ($10 million or less in
sales). One of the paradoxes in

great deal more about its business

this

ing

industry

and

medium

is

that

the

small

sized

companies try
to get big in a hurry so that they
will have systems capability. Yet

and with this
more

knowledge to make

rapid time and money sav¬
decisions.
But
while
vast

markets

industrial

for

electronic

equipment already exist, they
be

only

tapped

over

can

period

a

of

capability, time, -i.e., when industry builds
Bendix, Raytheon and new plants or modernizes existing
This
I. T. & T., are less popular with ones.
segment of the
in¬
investors as can be observed from dustry, consequently, will tend to
follow
industry
their lower-price-earnings ratios.
capital expen¬
The reasoning here, of course, is ditures. but with a higher con¬

the

that have such

ones

such

as

with

that

turity,

the attainment

growth

of

potential

ma¬

dimin¬

ishes.
Consumer

Electronics, the

ond

largest
dustry, has

past

10

the

billion, or close to 60% of
industry's sales, it declined

to below that level until the next

big

consumer

Since

1955.

product

that

time

year

it has

of
im¬

proved

gradually, exceeding $2
billion last year with further im¬
provement this year. With the ad¬

dition of

new

products and gradual
growth of color TV, it is expected
to

reach

Certain

interesting sections of
will be discussed in

detail

later.

Reviews

such
Bell

as

and

Motorola.
Industrial

Electronics

is

the

out

review

this

of

clude
vacuum
tubes, capacitors,
resistors, coils and, more recently,

devices

semiconductor

which

elements

circuits.

tronic
billion

$250

million

in

are

was

year,

$1.1

a

from

up

1950.

It

es¬

elec¬

most

This

reach

to

of

last

area

pected

(about

later), which

more

sential

Leadership

is

ex¬

billion

$1.3

this

$1.5
is

million

in

electronics

billion

level

expected

1950,

this

reached

the

last

to reach

and

year

$1.8

billion

this year. Over the past five
years
this segment has

doubled,

pacing any
of

the

out¬

other broad segment
The long term

industry.

outlook is indeed promising with
E. I. A. projections
calling for a
threefold increase by 1970 to the

$5.4 billion
this

level.

Some

ultra-conservative.

consider
•<

Recent
of

developments in the

miniaturization
could

the

tions for

more

number of years. The
of
data
acquisition,

is

al¬

direct descendant of tele¬

metry, employed by the military
of

cir¬

dis¬

conventional

as

Sprague
field

the

International

of

industrial

elec¬

of the

office, the store, the factory,
refinery. It includes
data
processing equipment and com¬

the

puters to perform paper work in
offices, banks, and stores (gen¬
considered




the

Office

and

current

direct current

to

but

a

rate,

switching purposes.

little

very

diodes

and

Rectifiers also convert alternating

could

become

very

competitive. Further, such devices

can

of will probably also encounter com¬
from new devices now
power and can deliver power at petition
constant
amounts
to
electrical in early development stages, such
as
tunnel diodes, solid state cir¬
circuits.
cuits and plastic film circuits. Of
Semiconductors, or more speci¬
fically, transistors, have generally these, the tunnel diode, invented
the Japanese
scientist, Dr.
been thought of as devices which by
would take the place of vacuum Esaki, and so named because cur¬
rent passes through it so rapidly
tubes.
In
many
cases,
this has
handle

much

amounts

larger

the

true, .with

best

it

known

were

lower

entirely

made

have

and

device

with

As

the

is

times

100

than

faster

transistor

is

and

only 1% the size and utilizes 1%
of the power. Earliest application

computer in¬
The transistor was invented by
dustry,
desirous
of
going
to
three scientists at Bell Labora¬
microwave speeds which the tun¬
tories 12 years ago, but only now
nel diode will permit, and IBM
might

is

it

its

and

applications.
of

cause

devices

sister

soming forth in

is

This

time

the

develop the

device

blos¬

has

and varied

many

in

be

retained

the

Dr.

sultant during

partly be¬
required to

into

of

Esaki

his

from

absence

as

con¬

a

leave
Japanese

one-year

his

firm.

■

Areas

Other developments in the solid
able, reliable tool and the time
state field offering great promise
required to learn the manufactur¬
are solar cells, solid state devices
ing techniques which would pro¬
duce

reliability

price.

Also

1955,

total

amounted
but

by

product

electronics

the

worthy of

more

areas

industry that
detailed dis¬

they appear to have
growth potential at
present time. The products
as

greatest

the

involved

are

of

the

marketing
They

major

solid

microwave

in

two

or

segments

of

discussed above.

areas

are

struments

utilized

state

equipment,
and

devices,
and
in¬

that convert the sun's heat to elec¬

to

at

semiconductor sales
about $37 million,

last

increased

had

year

to $365 million
with a greater increase in units
because of price reductions. This

of

the

electronics

growth
industry over

the past five years has exceeded

nology

involves

control

of

the

movement

electrical

current

which

heat

convert

can

directly

solid

materials

moving

parts,

vacuum

without
gaps

or

stations)

relay

through

and

a

nications, TV, telegraph and fac¬
simile transmission is so handled.
has

Microwave

been

extended

beyond the limits of the horizon

by the use of tropospheric scatter,
whereby signals are bounced off
ionized layers of atmosphere and
miles

500

earth

back to

deflected

The

away.

far

as

DEW

as

line^

Texas

Towers, White, Alice, Pole

Vault

and

communications

other

networks

warning

and

this

use

method for part of their require¬
At

ments.

present, the military

is the largest user of microwave,
with industrial uses confined

largely to commercial communi¬
cations, TV and air traffic con¬
But indications are that the

trol.

microwave

spectrum

be

may

opened up to industrial users un¬
der FCC license and this' could
create

entirely'new

an

growth

many large corporations
interested in hooking up their

area,

as

nation-wide

microwave

plant networks
communication.

via

install

with many of the spe¬
components
procured

cialized

outside

from

panies

microwave

service

and

systems,

sources.

include

RCA,

These

com¬

T. & T.,
Raytheon, Sperry Rand, General
Telephone,
Bendix
Corp., GE,
Western
Electric,
Philco
and
others.
With
these
companies,
is

microwave

I.

relatively

a

small

proportion of their total business
and their
prospects are largely
Perhaps
the most
interesting
of participation in the micro¬
wave field
is through the power
area

this

electricty, and thermo-electric
heating and refrigeration, where

flow

of

is

current

reversed.

field,

other

missile

with

its

control

ground

issue

in

the

Texas

solid

field

state

Instruments,

is

followed

are

of doubling capacity
companies are being

process

other

attracted
There

to

it.

J

are now

.close to 100

activities, ranging from full scale,
broad
line
producers,
through
companies specializing in certain
types, to those still experiment¬
ing in the laboratory. Among the
early entries into this field were
of

manufacturers

-

more

panies,

we

Rectifier

bei merged
'
struments).

strides

that

that would

would
cause

greatest

as

success

be

this
it

vacuum

These

made

and

industry to

now

Transistor

General

In¬

has. The

has been achieved

by newcomers, such as Texas In¬

activities.

Associates

This
and

leaves

Va¬

Eitel McCul-

lough as the more logical vehicles
which to participate in this
field. Varian we regard as the
quality issue, while Eimac is more
by

speculative.
The second method of partici¬
pation is through the companies
making microwave components,

instruments

and

test

equipment.

companies are in this but
interesting include Polarad, FXR, and Microwave Asso¬

Many

the

more

ciates.

Hewlett

also

is

Packard

important in this field, and is un¬
doubtedly the leader, but its ac¬
tivities
broad

in

instrumentation

to

as

sideration

Expects Two-Fold Increase in

are

so

preclude it from con¬

as

a

microwave

com¬

Electronic Instruments

Microwave Industry
Microwave

the

technology

of electronics

area

Instruments

is

an

that relates to

generation, transmission and

receiving of extremely short radio
In

waves.

spectrum,
those

of

be

the

electro-magnetic

microwave

can

tubes.

with

tubes,

pany.

this field to protect their invest¬
vacuum

com¬

International

General

(to

tween the

in

favor

over

such
as
GE, RCA, WX,
Sylvania, etc., who had to be in

ment

speculative

com¬

panies involved in semiconductor

the

smaller

of

types

more

rian

its missile programs. An advanced

specializing

in one or
including
most of the just mentioned com¬
it is possible to convert electricity
panies and Litton Industries, but
to heat when current is applied
again the prospects of these com¬
in one direction, and to cold when
panies are governed largely by
the

to

sales are expected to reach
While a number of companies are
million, with the $1 billion
level
considered possible within s $oing R&D work in these new
fields, it is still too early to deter¬
three to five years. The growth
mine which of them will emerge
in recent years has been sparked
as leaders.
by the tremendous requirements
At the present, the top quality
of the military, particularly for

blossom forth

through

tele¬

large portion of military commu¬

$500

expectations, largely because of companies seemed to have moved
however,
perhaps
not
the great strides made in solid slowly,
state
physics. Solid state tech¬ realizing the rapid technological
and

distance

long

the

of

phone traffic is handled by mi¬
crowave
(i.e., line of sight trans¬
mission from horizon to horizon

year

tubes

controls.

30%

factor

a

tenfold

nearly

and

several

of

tions and air traffic control. About

reasonable
tube, the heart
of
microwave.
tricity and already in use to power
is the time
These
include magnetrons, kly¬
the batteries in some of our satel¬
required to design into circuits
strons, travelling wave tubes and
thermo-electric generators, others.
such a revolutionary concept. In lites;
Many companies are in

in

•

navi¬

*

that many existing producers

Product

in

control

determined by other factors.

work¬

a*

and

guidance

gation,

used

also

is

Microwave

aircraft and missiles, communica¬

it

conventional

a

tubes.

vacuum

returning from the moon
some
250,000 miles distant and
from satellites even further away.
echoes

years

many

volume, 1960 will be the best year
for

producers

miles. Now it can detect

20 to 30

The
microwave
industry
is
will probably take
for the tunnel diode presently a $1.5 billion industry,
with the prospect of doubling by
to be designed into enough cir¬
1965.
There are about a dozen
cuits to make for significant de¬
mand figures. In some uses, this companies that design, assemble,

transistor,

markets, in

ever

Thursday, August 4, 1960

are

pilot produc¬

device.

this

tunnel

utilization.

transistor

the

a

material,^is

commercial

to

of

tion

pos¬

products

new

were

solid

the

have already begun

consumption,

power

if there

as

of

Most

hearing aid. But because of their
compactness,
greater reliability,

Re¬

Solid State Devices: The

tronics
relates largely to
what
might be termed the automation

erally

;■

:

are

cussion,

for many years.
field

the

and

.

There

employed in office com¬
puters whereas they have been
commonplace in military applica¬

The

solid

further

entered

Various

being

a

areas

are

of

most.

has

show;

are

analysis

for

and

is

market. With much larger

alternating current to direct cur¬
rent

replacement
capacity
slowing down of the growth
the market for transistors

there

not

but

used to convert

are

closely by Transitron.
Fairchild
equipment may require 100,000 or
sistance and Standard Coil have
Camera, to be merged with Dum,ore transistors and diodes. The
taken steps to diversify. At this
Mont
Laboratories, had been a
computer field is also
a
large
juncture we would be wary of
market for semiconductors, with speculative favorite, but we re¬
conventional component producers
gard it as less attractive now be¬
large installations using ; several
as
the solid state physics com¬
cause
of
added
dilution
of
its
hundred thousand semiconductor
semiconductor effort. Among the
panies seem about to steal the
devices. The field is so promising

military electronics, but tend
lag by five years or more. Thus
only now are solid state circuits

and

in

transistors

to

field

and

cause

component producer

Electric

in

computation

semiconductor

component field. That is Why such
a

almost directly related to progress

new

direction

one

other and

the

:

Developments in this field

a

in the

field, for example, was usurped
by newcomers from the logical
heirs, the vacuum tube producers.

turbances

$350

in

flow

to

tube, semiconductor devices have
almost
unlimited
life;
hence,

are

valves, allowing current

military and indus¬
broad segments of the in-' trial areas. And while vacuum
dustry requires a word on sup¬ tubes will be passed this year by
pliers of components. These in¬ semiconductors
in
total
sales

From

of

way

major

cuits

area

circuit to another. Diodes

one

sible

round

To

smallest but fastest growing seg¬
of the electronics industry.

ment

from

current

one

semiconductors

Components:

industry
slower rate of long term growth,
as they supply
nearly all manu¬
its cyclical characteristics and in¬
facturers of end products regard¬
dicated
increasing
competition less of which particular segment
from Japanese imports, make this
of the electronics industry is in¬
segment of the industry less in¬ volved. However, there is a rapid
teresting than others. Best situated obsolescence
factor
which
re¬
companies appear to
be
those quires a great deal of flexibility
with a good basic position in TV
for those who are to stay on top.

military
electronics,
Magnavox,
Packard

switch

to

or

and

year and $2.6 billion, or double,
billion level by by 1970. By and large, these com¬
of the estimated in¬ panies have the greatest diversi¬
for that time. The fication in the electronics

and with growing participation in

nals

could

business

this

that

be
very
competitive five years
from
now.
Unlike
the
vacuum

erally used to amplify small sig¬

longer life, lower heat generation,

Components

the $3.4

1970, or 17%
dustry total

dications

gen¬

transistor radio and the transistor

peak,

segment accounted for

are

closest

with TV

the
pushed it, and hi-fi and stereo
adding new elements of support
starting
last
year.
From
1950,

Transistors

cyclical cnaracteristics.

more

declining
and radio
doldrums where

circuit.

cal

through

been

rising from

$1.5

to

.

conduct
that of
conductors
like copper and
in¬
sulators like glass. By introduc¬
ing resistance in the form of im¬ moving up the fastest.
purities in the material, generally
Sees More Competition Ahead
silicon or germanium,
semicon¬
While the prospects for growth
ductors can
be given properties
that can be made to vary widely for this segment of the industry
are
extremely favorable oyer the
according to the manner in which
they are connected in an electri¬ intermediate future, there are in¬

commonplace examples being the

this segment

1950

this

devoted

ability
to
lies between

electricity

been

sec¬

of this in¬
static for the

dollars

their

cause

electronics and acting to minimize

TV

when

such

segment

years,

the

from

of

tent

transis¬

are

area

tors, diodes and rectifiers, collec¬
tively termed semiconductors be¬

per¬

importance,

more

information

this

in

.

.

struments,
the
unquestionable
leader, and by Transitron, now
pulling ahead of GE for second
place. The success of these com¬
panies has pulled in others from
the automobile, aircraft, electrical
and
other fields, with Fairchild
Camera
and
Clevite
probably

heated filaments. The best known

A Cautious Approach

cause

Chronicle

The Commercial and Financial

(470)

lies

be¬

frequencies of TV and

infra-red.

transmitted

Microwaves
in

very

nar¬

pencil-like beams over lineof-sight paths. Their applications
are
many
but perhaps the best
row

known is radar, where the
signal
bouncing back from an object can
be

used to determine the location

and

the

distance

of

the

object.

In

days of World War II, radar

could

detect

a

plane

or

ship

at

segment
broad
are

of

and

various

analytical

ments,
process

and

the

is quite

lumped together in it
types of laboratory,
and

testing

instruments

and

instru¬
used for

market for
instruments
is
esti¬

control.

electronic

Controls: This

industry

mated at about

The

$200 million; while
all

the market for instruments of

tvpes,

devices,

including

is

non-electronic
around $2

probably

billion. The electronic type instru¬
is
continuously
taking a

ment

larger

share

conventional

of

this

market

instruments

are

as

be¬

coming less adequate to cope with
today's rapid technological devel¬
opments, calling for the testing,

Volume

192

Number 5974

.

.

Commercial and Financial Chronicle

The

.

(471)
measuring and analyzing for qual¬
ity control purposes at various

bid

been

stages

reflects

or

the

of research, manufacture
processing.
The top quality
company in this field is Hewlett
Packard, followed by Beckman

Instruments
and
Perkin
(also in infrared).
The

market

for

Elmer

electronic

in¬

up to 40, 50,
earnings.
This

current

60 times
situation
number of factors: (1)

a

demonstrated

and

anticipated

superior rate of growth; (2) the
public acceptance of electronics

including optical scanner), Barnes
Engineering (Infrared), Electronic
Specialty
nents

(Miscellaneous

and

and Labora¬
tory for Electronics (Communica¬
tion

and

series

of

(3) the

almost everyone

of investors and

eagerness

struments for process control pur-,
speculators to participate in this
poses is slightly over $100 million, field where there has been out¬
out of a total control market of

''A

talk

by

$1.8 billion, including elec¬

tric, ^pneumatic
Controls.
used

mistaken

that

notion

in

before
recently.

groups

Sometimes

Florida

raw

I

am'amazed

at

the

temerity
with
which
certain
analysts, researchers, and writers
on financial subjects
glibly make

Capital

Stock Offered

materials into fin-' pected
growth;. (5) the stockholder
ished products, such as the chem¬
pressure
put on ^losed-end and A. C.
Allyn & Co., Inc. and asso¬
ical. petroleum, food, dairy,
paper, mutual funds to .show; jelectrqiiio ciates on
July 29 offered 950,000
rubber and textile industries. They issues in
portfolids; (6) /a scarcity; shares of this
corporation's com¬
are labor saving as well as
quality value, reflecting the greatdemand mon stock at a
price of $8 per
control devices.
Generally," these- for relatively smjall floating sup¬ share. The
offering marks the first
instruments indicate, record and plies of stock.
'
-Jt"' public sale of the company's com¬
control a series of process vari¬
The rise of electronic stocks lias mon stock.
process

This Isn't

vari¬

elec¬

and
hydraulic' tronics in itself is an industry and
instrumentsare that any company participating in
industries which it should share in its great ex¬

These

mainly

the

JOHNDUTTON

package for
could be devised.

Mr. Ferguson

standing market performances; (4)

about

BY

different

a

investment

ous

CORNER

navigation). Through a
permutations and com¬

binations

an

SECURITY SALESMAN'S

compo¬

systems)

outstanding marvel of the
past decade and decades to come;
as

a

superficial

analysis

ticular investment'

situation.

Then

of

a.

comehto

they

a

decision, and offer their opinions
and

conclusions

to

the

investing

public. The tendency to give "off
the cuff" opinions as to the trend
of

the

market

is

also

securities,particularly
Who

such

temperature,,

as

pres¬

not

sure, humidity, flow, liquid level, There
etc.
Most of these control instru-*

.meiits

are

pneumatic but in recent

years electronic controls have been

becoming

widely

more

In some types of

accepted.

installations, "this

equipment is tied in with

Which, with the

puter
it

has

in

its

back

the

control

com¬

instruction

memory,

split-second

a

make

can

decisions

and

feed

regulatory

proper

instructions.

and

Demand

for

this

type .of equipment stems
mainly from expansion by those
industries served

through mod¬

or

ernization of existing processes.
This segment of the industry,

consequently, tends to follow in¬
dustry capital expenditures. Prin¬
cipal companies in this field are
the

Brown

Instruments

Division

6f Minneapolis Honeywell, Foxboro, Leeds & Northrop, Taylor
Instruments, and to a lesser ex¬

tent. ' Fischer

&

Porter.

Recently,

wit.

been

have

out-'interruption
several

been

market

Florida
ecutive

Capital Corp', with
offices

corrections,

Beach, Flat, is

casioned

diversified

severe in,-nature, oc¬
by developments an the
military-political Tield and by-pe-s
riodic
investor "reappraisals
of

prospects
vidual

priced.

and

have reacted

issues

versities

Also, indi¬

peculiar

to

to ad¬

in

last

upsurge

since

interrupted

only

strong

a

summer,

the

was

1959

a

temporarily by the general market
decline earlier this year and more

of

non-

registered

Company

under

Act

of

licensed in November

Federal Licensee under

Small

Act

ex-,

Palm

closed-end,

a

Investment

1940. It
as

West

management " invest¬

company

themselves. the

The current electronic market has
been

ment

in

Business

1958.

Investment

1

concerns

activities

either

engaged

related

to

prevalent

group

lie

in

the

uni¬

almost

seems

to

versal

expectation that per-share making

a n d
computer
systems to industry, while Leeds
Northrop made a similar ar¬
rangement with Philco. Minneap¬

olis Honeywell has its

puter

capability,

Instruments

own

while

takes

the

com¬

Taylor

approach

that computers are now sufficient¬

ly standardized that they can be
purchased as a component for a
complete
been

system.

Foxboro

has

considered the quality com¬

pany in this field, but Taylor In¬
struments

seemed

Value

investment

still

per

does

despite

to

sharp

a

in recent months. At
ulative
has

offer

a

more

dollar,

and

run-up

more

spec¬

level,

Fischer & Porter
appeal as a low-price

some

vehicle.

While there

are

other

areas

of

interest in this industry, the fore¬

going

destined for t'~e
growth
over
the
next

appear

greatest

several years.

made,

Mention should be

however,

dividual issue

of

not

a

certain

included

in¬

else¬

where.

tures or other

equity securities, by
long-term loans, and by
earnings will continue to grow at furnishing consulting and advis¬
a 30% to 40% annual rate for the
ory services; While the company's

next five years.

Litton Industries has been

remains

our

number

one

and

selection

at least question¬

the

and

we

continue

believe

to

represents

one

of

great industries of the future
that

portfolio, institu¬
individual, should have

over

the

the
more

past

several

popular




equities

and

have

out

of

it

of

the

chaff

daily with

taking

are

that

is

turned

substantial grain

a

salt.

In

duty of

is

assist his

offering of $160,000,000 of

}

Opinion, the

customer

to select

will

provide him either-with rthe

most income or the greatest
or

both.'

That's"

profit,
people in¬
If you ac-

\yhy

vest—to make money.

cept

this, very plain, statement of
fact then it also must follow that
the

salesman

-

who

is

mature

enough to acquire a -background
market information, and spe¬
cific information; and - who then

of

make

can

what

his

up

stocks

mind

own

will

be

the

as

to

popular

investment and speculative favor¬
ites is at least better prepared to
do

good

job for his customers,

if

reads

a

he

assimilate

he

the

all

The

accomplish by

can

stuff

he

day after day and
best

that

doing is
confused,

so

who labor at

to
become
thoroughly
reporting the financial and the results he will achieve for
doings, and who are expected to his customers will be
largely un¬
come
up
with suggestions
and successful.

the task of

recommendations

of

attractive

speculative and investment situa¬

tions,

know

spot

their

they

as

placed

are

on

as
they open
put their pen to

soon

mouths

or

the paper. The
dedicated''analysts
in this business would be the first

limitations and

own

shortcomings.7 " During
several

it

years

the
past
that fi¬

seems

nancial

judgment
is
rewarded
primarily when you are a good
guesser as to which industry will
be

popular,

which

and

stocks

in

that

industry will attract public
fancy. The faddism in security
selection

Are Offered

men

j

♦

security salesman

a

believes most of it.

Their Limitations

Certainly the

•

speculations and investments that

can

of

A

..

considered

my.

to

i

■

Your,Eyes Open.

first

than

Good Analysts Are Aware

ings,

Public

not)

or

j

Keep

is

balance

today a fact. Earn¬
sheets, and even a

good

financial

years

is

unless

record

almost without
with

someone

the

over

meaning

skill

and

an

This

is

the

day

the stock market.

speculator who fails
ficient

weight

faddism

of

in

The investor

to

to

this

or

give suf¬
superficial

but compelling impetus over stock

prices

will

speculate

it..

regret

tunately, ,jWhen

people

Unfor¬

invest

or

in

turning

securities, they are
their hard earned cash

into

fluctuating

a

highly

and

hazardous piece of property. This
isn't
a
game,
investing
other

people's

money.

is

It

serious

a

business.

Salesmen, analysts, un¬
derwriters, financial columnists,
and
the public
itself could be¬
come

in

a

great

welfare

of

the

upon

deal

more

this

activity.

to

regard

this

mature

country

resources

The

depends
the

and

in¬

itiative of its people—also their
timing, plants
good representation in it, we ad¬
judgment as well. A stock mar¬
the seeds in the press, in maga¬
Federal
Home
Loan
Banks
dated
vocate a policy of caution.
Elec¬
ket
that
fluctuates
will
always
tronic issues in the past have been Aug. 15, 1960 and due April 17, zines, and among those who will
reflect what people think — not
ultimately convert their cash into
known to have had severe market 1961 was made on Aug. 3 by the
what things are worth, or what
This
is
stock.
the
day of the
corrections and another one could Federal Home Loan Board through
they are. Mature thinking can be
propagandist, the advertiser, and
be in the making. There is a basic Everett Smith, Fiscal Agent of the
applied to investment as well as
the columnist, and the stock mar¬
law of physics which says "For Home Loan Banks, and a nation¬
speculation, but meanwhile the
ket has not been neglected.
wide group of securities dealers.
faddist and the propagandist can¬
every action there must be a re¬
The notes are priced at 100%.
Possibly this is an indictment not be
action."
'
1 '
ignored.
of the current situation as to what
Net proceeds from the offering,
the public wants, reads, and acts
Gives His Own Selections
together with current funds of the
Basically our philosophy toward Home Loan Banks, will be used to upon, when it buys or sells com¬

consolidated

notes

the

oF

accurate

of

sense

,

this group would be to accumulate

retire

top quality issues on a dollar
averaging
long-term
basis
in

On

and

depending
ments.

numbers

upon

The

<

issues

of

account require¬

nucleus

of

such

could

be

clude

Microwave Associates

performers
years,

F.H.L.B. Notes

3 y8 %

a

long-term growth investment
group would be Litton (Diversi¬
in this industry.
It is probably
fied), Texas Instruments (Semi¬
the only one of the newer compa¬
conductors),
Varian
Associates
nies that has achieved broad di¬
(Microwave) and Hewlett Pack¬
versity of products and markets, ard
(Instrumentation).
As sec¬
and has done it through careful'
ond tier back-up issues we would
selection
rather
than
happen¬ include Beckman (Instrumenta¬
stance.
Through a philosophy of
tion),
Transitron
(Semiconduc¬
extending its nucleus of electronic
tors), Magnavox (Quality TV and
technology into any industry in
good
military
electronics), and
which it can make an important
Eitel
McCullough
(Microwave).
contribution
through
new
and
Beyond this we would prefer to
better products, it is now repre¬
use the package approach
for the
sented
in
the
fields
of
office
many medium to smaller compa¬
equipment, data processing, mi¬ nies which appear to offer excel¬
crowave components and systems,
lent long range growth potential
navigation and communication for in
their
respective
fields,
but
both aircraft and missiles, coun¬
which carry a higher degree of
ter-measures, commercial com¬ risk. A
sample of such a package
munications and facsimile equip¬
would
be
FXR
(Microwave),
ment, geophysical exploration, Giannini
(Instruments and Con¬
space research and medical elec¬
trols),
International
Rectifier
tronics. Its growth has been above
(Semiconductors), Taylor Instru¬
average and
should continue so ments
(Process
control),
Loral
for a further period of time.
Electronics
(Various,
including
ASW)
and
Itek
(Information
stor¬
Market Action
age and retrieval).
Others which
Electronic
stocks
have
been
market

,

every

tional and

for

spectacular

(believe

to admit their

electronics

releases

frankly, I

technology,
and con¬ in other areas as opportunities
tinued need for large R & D ex¬ arise.penditures.
Also, financing will
Upon completion of the current
be needed to meet expansion re¬
financing, outstanding capitaliza¬
quirements
and
this
generally tion of the company will consist of
takes the form of equity or con¬ 976,664 shares of common stock,
vertible to equity securities, indi¬ $1 par value.
cating slower per-share earnings
growth than for sales.
While

special

am not surprised that more
serious
minded and independent
thinkers,
as well as investors and salesmen

the

that

press, marr

lot of the financial
writer who prognosticates is
surely
not an easy one; Quite

will
Whether this will investments
probably
be
made principally in small business
able because of increasing com¬ concerns operating in the State of
petition in many areas, rapidly Florida, it may make investments
be attainable is

amounts
,

and

tura-r

come

in

develop¬
electronic equities ment of land or in the electronics
are close to all-time
industry. The company will par¬
high price-earnings ratios.
ticipate in these concerns by pur¬
Justification for present PER's chasing their convertible deben¬
a

_

&

letters,
daily.
The

the

Foxboro, made an arrangement
changing
with R. £. A. to supply electronic
instrumentation

ket

recently,
as

reflections

bling into the financial

some

The company intends to special¬
ize in investments in small busi¬
ness

these

and

k!s.

o c

corporate bonds other
insurance companies?'

•

»

;•

t

s

buys

than- the

par¬

speculative

or

Gams

a

.

ables

19

used

in this

manner

in¬

(Mi¬

crowave), Baird Atomic (Various,

$162,000,000 notes maturing

the notes

for

in¬

today among the people of

medium

Upon issuance of the notes of¬
fered-today and the retirement of

Investment

stocks.

mon
come

Aug. 15, 1960.

and

smaller

means

is

■

almost limited

to

those

of retire¬

ment age; and simon pure invest¬
ment therefore has been gradually

falling due on Aug. 15,
outstanding indebtedness of the
losing status
among
individual
Home Loan Banks will total $1,investors.
Institutions
and
the
273,115,000.
mutual funds have taken
investment

Hold

To

ally

Luncheon

the

function

increasing
twenties

to

extent.

when

I

a

gradu¬

Back

broke

in

into

this business, people bought in¬
111. —The Investment dustrial,
railroad,
and
public
Women of Chicago will hold their
utility bonds, yielding from 4 to
summer
luncheon
on
Saturday, 6%. These bonds were of good
Aug. 6, 1960 at the Edgewater quality and there was hardly any
Beach Hotel
Michigan Room. income tax. The professionals

CHICAGO,

1

.......

.*

•-

*

.

y

.*

Hay, Fales & Co., members of the
New York Stock Exchange,
an¬
nounced that Roy S. Feltinan has
become
in

the

over

Chicago In v. Women

Roy Felt man
With Hay, Fales

its

associated

the

with

Over-the-Counter

firm

Trading

Department, which is managed by
his

father, Irving Feltman.
The
was formerly associated
with
Goodbody & Co.
At the same time, the firm an¬

son

nounced the removal of its offices
to

larger quarters at its present
location, 71 Broadway, New York.

—

Irene

Forsythe, Smith Barney & who now see the National Daily
Co., is in charge of arrangements. Quotation bond sheets with their
skimpy

With

Gppenheimer, Neu

Oppenheimer,

Neu

&

Co.,

Broadway, New York City,
bers

of

change,
E.

the

New

York

120

mem¬

Stock

Ex¬

announced that Leonard
now associated with

Wagner is

the

firm

as

a

registered

repre¬

sketchy

what

know

they

remember

I

the

offerings

mean

when

activity

we

used to have in bonds in the days

before

present day income taxes.
There was an incentive for people
to

save

and

invest

in

bonds

Pressprich Staff

(Special to The Financial Chronicle)

Upham

(Special to The Financial Chronicle)

ANGELES, Calif.

LOS
W.

—

George

Schemel has become affiliated

with

Harris,

West

Sixth

Upham
Street.

&
He

Co.,
was

523
for¬

merly with Shearson, Hammill &
Co. and Quincy Cass Associates.

in

those

days. Today the accent is
capital gains, which is pos¬
sibly a polite term to' describe
gambling on price movements in
stocks. I won't argue the point—
each to his own.
But seriously,
on

sentative.

Joins

and

will

Now With Harris,

Holton, Henderson Adds
(Special to The Financial Chronicle)

LOS
D.

ANGELES, Calif.—William
has been added to the
Henderson & Co.,
West Seventh Street, mem¬

Joye

staff of Holton,

BOSTON, Mass.—Melvin O. Aron- a large part of the market letters
and financial comment ground out
son has been added to the staff of

210

Pressprich & Co., 75 Federal today deals with the speculative
Street.
price appreciation possibilities of

Exchange. He was previously with

R. W.

bers

of

the

Pacific

Demnsev-Teeeler

&

Coast
Co.

Stock

..

'«

20

AS WE SEE IT

these

to

take

output

Continued from page 1
the

"XYZ"

a

under the

It

is

and title

name

a way of killing the goose
lays the golden eggs.
There is another psychological
trap at this point. We read about
men
who bought some relatively

simply

unknown stock at

National

a

discovered uranium

oil,

or

or

gold

investor

an

with

moderate stake in such
has

out

come

rolling

clients have

just such
But

a

very

in

wealth

occasion hit

on

this, while it

gratifying

Product.

to

may

be very

Party of the
It proves
large sense, any

the

nothing in

any

than

the

more

The Stock Market Is No Lark

What is important

pull expectation.
thing the average

shrewdest

used

as

man

and

are

most

in

expe¬

of

measure

a

effect

unsoundness

"The

od.
is

men

or

ness

method

the

"bet¬

sound¬

of the meth¬

of

evaluation'"

important than whether
you happened to be lucky enough
to scalp a profit in some particu¬
more

lar

stock

hunch.

that

Nor

bought

you

on

a

is it important from

the

standpoint of method that you
may have taken a loss on a stock;
several

or

losses

on

successive

of how

question

than

much more

to

how to deal

is

the

apply to

might

way,

almost

field you might mention.)
On the face of it, it looks

cope

a

matter of try¬

course.

when

though

as

with the

deal

we

dealing with "eco¬

market we are

nomics,"

or

of market action

is interested in,

"generally" will
direction, on
and over the long pull.

not to
■

There is, of course, still another aspect of
programs
recklessly stimulating production of consumer goods

explain

me

If

a

little further

by "method of eval¬

mean

take

ordinary
pack of playing cards containing
26

red

and

remove

we

which
16

and

cards

then

ones,

we

will

has

26

26

10

have

an

black

ones,

of the

black

left

a

red cards and

deck

only

black.

to

we

money

card

know

shuffle these and you are

the deck, making an even

cut

bet

on

whether

the

cut

cutting to a red card.
If
however, it should turn out to be
a
black card you would not be
your

justified

in

feeling

that
your
If, in fact,,
you* Wdre to reshuffle and cut
three, four, five times, and each
time you lost by cutting a black
card, -this would still not affect
method

was

wrong.;

ours

something get into our mind that
us to believe that it is going
to
rain this afternoon, or that

leads

Polly would like a portable radio
for her birthday, or that it is time
to

will be

He

concerned with

more

the overall results of many, many

transactions

over a

be

times when

to

go

everything seems
against him, and he must
have sufficient experience, suffi¬
cient powers of observation, and
sufficient courage to maintain his
method until such time
a

as

he

sees

need to change it in some ways;

he

then

and

be

must

to

ready

make changes as necessary.

it

Also,

important

is

him

for

to realize that even if he were to

several

make

highly

ish faster than you can say "Mar¬

gin Call." In almost any broker's
board room you are likely to see
some wistful, discouraged-looking
man worrying over the tape; and
someone
may point him out to
you and tell you that back in 1955
he made

1957.

million in jsomc stock

a

other;

or

but
is

He

then

still

lost

to

all

in
an¬

And he does

would hurt too
clearly) that he

(it
it

see

it

looking for

other lucky break.

realize,

had

simply been the temporary
beneficiary of Lady Luck; and
that his real problem is that he
has

studied and anlyzed the
the
standpoint of

never

from

market

establishing
tion"
not

and

strategy that would
make him profits in

a

only

the

times, but

major

part

when

times
dead

"method of evalua¬

a

would conserve
of his capital in

everything

"went

wrong."

points this coming month?
Learning by Experience
What I

Work

central

cially

stock

new

siastic

offense;

speculators,

espe¬

and young and enthu¬

ones,

are

but

very,

good
very weak

very

around

world

on
on

attach

and

us,

"meaning" to what we take in. Or

could call it "communica¬
tions," that is to say, the study
of "information" and signals be¬
you

people, and from things to
people, and the logical processes
that go on in our minds.
It is

tween

Professor

what

with

connected

Norbert Wiener of the Massachu-r

of Technology has
"Cybernetics" or steersmanship, by which we abstract

setts

Institute

called

information

outside

the

from

it to control or
our behavior; in ordinary
language, the process of "learning
by experience."
world,
adjust

and

use

In connection with my own con¬

these

along

education

tinuing

lines I have tried to discover what

traps and pitfalls our minds could
lead us
into; and in my book,
"The1 General Semantics of Wall
Street"

have

attempted

to

show

how all of the financial and busi¬

and

problems we
through the
same
perceptive equipment.
If
that perceptive equipment is cap¬
able of extracting what is im¬
portant, and rejecting what does
not apply, and integrating signi¬
ness

personal
all

encounter

pass

ficant data to arrive at valid con¬

hope to de¬
call "intui¬
tion,"
say, the ability
to make "informed guesses" that

clusions,

will

a

can

man

thing
that is to
the

velop

generally

direction

us

Most

The

systems.

nervous

study of "perception," or how we
take
in
information about the

of

safety.

sible

Required

speaking of might be
education of our own

am

the

called

or

Hard

The

get a haircut, or that Bethle¬
hem Steel will advance at least 10

long period of

time, than with the flashy "clean¬
up" in one all-out gamble.
He
will face the fact that no matter
what methods he uses, there will

will

be red or black, you
that the probabilities favor

of

lead him in the right

good
If

little

a

minds

balance,

much

uation."

about how these
work.
How we
"know" what we know? How does

know

Seeks

Serious Investor

What the

not

transactions.

output—particularly if, as is usually
true, such stimulation is largely directed at areas which
do not add to the production capacity of the nation—would
fall far short of what apparently is expected of it. Obvi¬
ously "priming the pump" expenditures which merely
stimulate consumption would fail to provide the type of
growth which would have the greatest significance in the
international field, and could very well result in weaken¬
ing rather than strengthening the productive capacity of
f

The

with, the market, then, is much
more than a matter of hunch, and

profitable
ting he is wrong" whether they gains by gambling most of his
are selling him
stock, or options, capital each time and pyramiding
the profits, this road is very likely
or whatever.
to lead, sooner or later to a dead¬
The
particular results of any
end, when all the profits and all
one
venture
in the
market, re¬
of the original capital would van¬
garded as a speculation, cannot be
rienced

Let

'

is the longAnd the first

has to
learn is that in addition to being
a basic part of the country's econ¬
omy, the stock market is a tough
game; a game in which some of

stimulation of total




that

what I

•

the big Foot¬
of sixpence,

somebody's neighbor in
drew a winning horse
in the Irish Sweeps.

Capacity Important

i:

a

some

Stamford

If, then, capacity to produce is at least an important
element in any meaningful appraisal of economic growth,
any steps taken by government to promote economic
growth must take that fact into full consideration. Mere

of

stake

or

—

growth at all.

won

ball Pool

on

that

fact

English widow

the

these appear

Champion." And for most
the business of learning

any

is what principles

jack-pot.

a

First Part, is not basic.

example. Gross National Product on
the farms of this country increased less than 30% from
1929 to 1959 when the effect of price changes are elimi¬
nated. According to this rate, that sector of "the economy"
has not grown very much, not even as much as has the
population which increased around 45%, during the
period, and not nearly as much as total output of all goods
and services, or upwards of 135%. Yet who can doubt that
we
could easily exceed the 1929 output of our farms
several times over
should we be called upon to feed
starving peoples in famine stricken areas? Perhaps it is
legitimate to say that our agricultural sector of "the econ¬
omy" has not grown very much during the past four
decades, but certainly such a statement would need a good
deal of qualification if it is to have very much meaning.

as

having a run."

was

a

own

concrete

enter current discussions of

the "odds" on the basis that "black

What we are interested in, that
few years later. We have
known such cases; some of my is to say what the serious student

only

Agricultural "Growth"

the nation. Yet such considerations

weight

situation

a

~

Production

work, and reading a
I Became Heavy¬

"How

on

new

simpler to ignore the product mix pre¬
sented by our output than to undertake the complex task
of keeping account of what it is that is being produced
and trying to determine what its meaning is. This is an
era, anyway, in which we in this country seem to have
developed immense faith in statistical estimates even
when nothing more than approximation is at best possible.
But all this does not warrant utilization of available figures
for purposes for which they are not suited, particularly
when we may very well mislead ourselves and possibly
our friends quite badly.

a

and

"corporations," v and
ing to copy the "lucky break" of nothing else. Actually, there is a
some
more
publicized (and exception¬ great deal else, and perhaps the
people at less cost per life,
or who happened to strike a rich
ally fortunate) speculator who has most important part.
"made a killing."
vein of public response with some
As a matter of
Since to do anything about any¬
cosmetic
or
reducing
diet,
or fact, the "killing" is more likely thing, the decisions have to come
bowling machine, or a new kind to involve you than the market from within our own minds, it is
of camera.
There have been cases if you follow any such unscientific most
highly important that we
the property; or invented some
kind of weapon for killing

on

also much

Take

during
doing a little
reading and thinking once in a
while on a rainy evening.
Which
is roughly comparable to winning
the
heavyweight boxing cham¬
pionship by jumping rope for five
book

casually

about"

hour,

noon

with the stock market
complicated by the already
heavy demands on their time by
the validity of your opinion that
their regular work, their family,
the probabilities favored red. And
social and recreational
commit¬
unless you had evidence to show
ments, etc.
If they are going to
that the deck had been tampered do
anything with the market they
with, or another deck substituted, have got to face the fact that it is
it would be the height of folly to
going to take a lot of pretty damn
make a bet deliberately against
hard work on their part. (That, by

very reason¬

able price, and then the company

convenient measure of

of Gross

However, if
in an im¬

to be

that

growth since the Department of Commerce compiles an
estimate of total output at regular intervals and publishes
it

reaction."

happens

portant major trend, this may be

our

as

ple"

"learn

No Easy Money in the Market
"on

•

fairly "sim¬
problem, something we can

gard the market as a

people

where

easier

most of us

be brought into the field

can

'

-

probably is that
at the start tend to re-

trouble

The

minutes after

output.

this, is not

chance.

have already

growth discussions

than a lucky

pects to have more

our

areas we

needed if one ex¬

market that is

Novices Have Yet to Learn

capacity to produce at
least as important as our current rate of production in
measuring our ability to give aid to needy peoples or to
create armaments in defense of ourselves? Of course, it is
much

They are
not willing to
sit up night after night and work
out the complicated study of the
what to do.

them

able, or at least

not

of realism?

time.
to all

production, but

finite. In several

Thursday, August 4, 1960
tell

supply is definitely not in¬
found it necessary
to supplement our own supplies of materials. We need to
balance the need for growth against a reasonable rate of
exhaustion of national resources. Is there no way in which
modern

objection to this approach to economic
growth arises out of the fact that total output during any
given period of time is dependent upon two factors, one
capacity and the other the degree in which our capacity is
being utilized. Thus we may easily deceive ourselves during
depressed years into thinking that economic growth has
stopped and even turned backward merely because for the
time being we are not making full utilization of our capac¬
ity—and do so even when capacity to produce is actually
growing. Something of this sort has occurred on more
than one occasion, or perhaps we had better say that, by
taking current output as a measure of growth, partisan
politicians—and others, too—have come up with very low
growth rates between two arbitrarily chosen points in
as

.

objectives usually cited in
alleged need, for greater growth
of "the economy." That is the matter of natural resources.
We are still rich in most of the materials needed for

second

Now

.

discussions of the need, or

ceptable? We do not believe so. Our objection rests upon
considerations, both, we believe, of first rate im¬
portance.
In the first place, a mere increase in the total output
of the nation as such has no particular meaning—or at
least an ambiguous meaning at best—either when related
to domestic problems or to the international considera¬
tions usually cited as an indication of need for greater
growth of "the economy." For example, we might double
or treble our
output of consumer goods, or of those types
of investment which do not materially enlarge our pro¬
ductive capacity, and still be no stronger, possibly even
weaker economically speaking, by reason of retardation
in the rate of productive investment. And, obviously, a
dramatic enlargement of our output of many types of
goods would not enable us to be of greater help to the
backward and poverty-ridden peoples of the world. We
could easily deceive ourselves badly by paying heed only
to the total volume of

.

and its relation to the various

Continued from page 1

two

The

Financial Chronicle

The Commercial and

(472)

to

out of

him

lead

or

success,

in the
comfort,

And it is just as pos¬

train

it to lead

we

one's

trouble,
us

as

mind

to lead

it is to train

into trouble.

We are

with
Wall
Street, but most especially with
that
complicated and
powerful
evaluating
device;
the
Human
dealing

not

alone

,

defense.

:

Furthermore, with
breed, they

due respect to the

lazy.

They

they

look- for

hope

for

"luck"

somebody

else

all
are
or

to

Mind.

If

someone

become

a

feels

that

bit. general

I

have

and unspe-

Volume 192

cific

in

the

last

Number 5974

few

he is right. Let

paragraphs,
try to correct

me

this.^
The

will

to

newcomer

almost

the.v market

invariably

conclusions."

some,

"jump

He

will

to
as¬

that because the affairs of

sume

certain

company

.

quarterly or annual reports, are
improving,
therefore
the
"real

The Commercial and Financial Chronicle

.

and

moderate

a

it

and

will

both

in

over

the

for
so

One

delusion

suffer

value" of the stock must increase.

about"

"book

value"

"market

will

that there is

assume

stock

a

the

and

its

value." "Common sense"
to tell him that

seem

which

of

some

between

has

stock

a

advanced

greatly and
rapidly, "can't continue to go up,"
or that it is
"overpriced," (forget¬
ting or overlooking the fact that
the

very

the stock is ad¬

reasons

vancing

the

concern

outlook

that

is

idea

is

to

mar¬

ket,

and not the conditions
of last year). He will buy stocks

because "it stands to reason" that

declined

90%

from

also decline from

can

$10 to $1

and that both declines
represent an equal dollar

would

loss

to

investor

an

at the stated

mar-

"]i r

bought

prices.

Novices Love Extremes

The
who

novice
not

are

should

investor, and
novices

and

who

know

better, has a great
tendency to go "all-out."
If the
market is "strong" he buys heav¬
ily. If the market is "weak'K he

lated

un¬

that

a

small

quantity of each of five
stocks may be a better investment
than a large bloc of only one. In
fact it is this all-out tendency that

gives meaning to the expression,
Too often it turns

out to be just that.

tistics

one

adjusted

put,

The
beginner in the' market
(and the perpetual freshman who

learns)

dency

to

almost

any

has

great ten¬
"either—or" about

be

a

decision.

In order to

protect his feeble decision-making
machinery he must back up the
decision

with

evidence he

all

the confirming
find; and he will

can

exercise "selective inattention" in
not

taking

account

of

anything
that raises a question about the
decision. He is likely to be proud
of

this

ability
mind," and he
a

"make up his
may consider this
to

matter of Positive Thinking. Ac¬

tually, scientific method calls for
giving
thought
to
unfavorable
as

and

most

well

pressed

the favorable ones;
decisions can be ex¬

-accurately

more

than

as

a

"abso¬

an

as

lute."

What

to

seems

be

stake

at

in

the

buying and selling of stocks
making of profits, or at
least the protection of capital. But
what is more importantly at stake
is

is

prices

collected

are

relevant to the prob-

lem, which is the price of
tain

stock

Even

traded

as

the

on

astute

most

cer-

a

enhancement
a

man's

and

protec¬

"self-regard."

rigid,

so

to

make

all-out

be

"either—or" about

cannot

his

that he has
decisions, has » to

absolute

afford to take losses,

self-regard

do

not

Their

understand
to

his

that

then

it

is

their

important

problem,

ities"

between

and

is

the

or

to

say,

would

there

"make

then,

ideas

one's

flexible

study,
mar¬

ket

and most especially of him¬
self, the result may be that he will
apply
"more of the same" by
making his attitudes more rigid,
more

absolute; and by moving his

goals

toward

possible
What

even

an

more

im¬

are

to

imnois'!!!!!!;!!!!!!
102
Indiana!!!!!!!!!!!.!92
Iowa 99

51

51

73

19

in

that

Kentucky!!!!!!!'!!!!

120

And

Louisiana!.'.'.'.'.'.'.'.'.'.'

64

in

that

maps

the

form

This

by all of the investors in
free

market.

The

democratic

of

this,-

based

chart

a

is

evaluation.

on

past

conditions

draw
rive
the

is

and

"probabilities." While

to

simply

can

be

right

4.

r,

'How

is

about

can

the

(Meaning, to some, I know,
I

about

learn

to

be

always

set reasonable

objectives, and

allow for unusual

conditions that

I

can

may

for,.;

hold
a r

us

back.

greater

•

We

measure




can

settle

of safety

feel

that

if

the

student

of
on

ered

The shorter

certificate

Reserve

Banks,

109

145

29

16

13

should

have

only certain

the

of

owners

maturities but also

institutions

43/4s

attraction

owners

for

for not

45

13

*

7J

3}

4J

Wyoming.!!!!!!!!!!!

23

14

9

maturity is not too long and
yield is favorable. In addition,
the feeling is strong in the capital
market that bond yields will con¬

Alaska has no county organization, and no

tinue to decline and this reopened
bond issue should share in this

changes.

offered

Witter

yv

BERKELEY, Calif.—Dean Witter
& Co., has opened a branch office
at

2068

Center

Street

a

partner in the firm.

under

*

With Hutton Co.
HOUSTON, Tex.—E. F. Hutton &
Co.

were

for

The

first

$100,000,000
factor

market.

had

It

was

accounts,

agency

the

Rusk

office

at

lo¬

is

Travis.

Mr.

berger & Currie.

bond

expected in !
Government

the 37/8s of 1968.

Refunding

W.

Brandenberger was formerly
a
partner in
Moreland, Branden¬

reserved
also a

the

try and obtain about $2,000,000,000 on new bonds in this
operation, with a maturity date
considerably longer than that of

Cash

John

was

for

been

quarters

that

Houston

firm's

cated at 901

on

favorable

announced

based, Texas Municipal Bond De¬
partment of E. F. Hutton & Co.

June 23, and then only
in the amount of $1,000,000,000, of

which

has

Brandenberger has been appoint¬
ed manager of the new, Houston-

With Shearson, Hammill
(Special to The Financial Chronicle)

SAN
E.

FRANCISCO, Cal.

Burnett

and

John

son,

Hammill & Co.,
Street. Both

235

gomery^
a

Success

—

F.

George
Carter

have become affiliated with Shear-

Montfor¬

were

merly with Schwabacher & Co.

Ex_

1

direction of William

Mr. Neumann is the firm's

Brandenberger

re¬

would

becurities & ConAftl1

Milwau¬

Controller.

r

Treasury

opened the 37/8S which

rn

uean

V

The fact that the

Mr. Richey has recently
Eastman Dillon, Union
o

of the

the

move.

beenswith
oppliritip.

Neuman will become As¬

Treasurer

Company, 207 East Michigan

Street.
•

the

53

26

stock

MILWAUKEE, Wis.—On Aug. 11
Marvin

since

98

of the New York

dic¬

Appoint Neumann

few

a

39

Coast

of business is going to

not

Washington

ific

the

on

that the

evident

Milwaukee Co. to

due

Virginia.!!!!!!!!!!!!

memb(Lrs

is

be available in the future.

of the August

individuals

and

It

tate the amount of credit that will

kee

254

p

whole continues to be

a

the

36

j

■_

defensive.

sistant

»

s

as

the

95

South

supply and the purchasing

authorities, how¬
in reducing margins, are in¬
dicating that the inflation threat

will

«

d

1

Aug. 1, 1961,
requirements
of

largest

gtreet

recting his obvious mistakes; if he

due

the

Aug. 15.
The $1,000,000,000 of
3%%
bonds due May
15,
1968

640

the

increase

ever,

maturity, the 3y8%

*7

c

also

The monetary

issues.

new

26

&

going

market.

stock

common

could

power.

$1,650,000,000 less than it is pay¬
ing off, and will save more than
$200,000,000 in interest payments
alone in the next year because of
the
lower coupon
rates on the

4

{

the

money

operation the

41

g

been

equity market has

'

29

E. Richey has rejoined William R.

the

V"

5

.

It is evi¬

available data that

increase the credit that will go

This

distinct pos¬

a

.

67

.

the

into

There was, however,

36

to The Fikinoiji CHH0NICtE)

to

and cap¬

ofegon"13

Rejoins Wm. R. Staats

amount

been
only slightly on the increase, with
a pattern of stability pretty much
the current condition. By lower¬
ing margins the Federal Reserve
Board will now make it possible

ex¬

Pennsylvania!!!!!!!!!

Co,

Reserve

Federal

which had

credit

itno

course

some

cor-

money

this refunding

Federal

507 West Sixth Street. He
previously with William R.

announced last

was

the

dent from the

Government will be re-borrowing

10

1

by

Of cash which is required to pur¬
chase common stocks
(on mar¬

announcement

have been

to

sibility.

78

,

week

in margin

reduction

of the package deal, with a re¬
ds still dormant and the economy
opening of the 4s of 1980 consid¬

88

PI

.

,

much

and

expected

about

requirements

more
than a passing amount of
opinion that the Treasury would
make a real long-term bond part

meet

of course,

market would concentrate

ital markets.

39

Staats &

the

market?") The answer,
is that one cannot learn
to be (always) right. But one can
learn
how
not
to
be
"always
wrong" or nearly always wrong,

pectations of the

42

A

an
v

gin) from 90% to 70%.

pretty much in line with

11

I

with

issue

an

Board when they cut the

(due Aug. 1, 1961) and
$1„0Q0,000,000 of an 8-year 3%%
(maturing on May 15, 1968)

61

59

long

talked

de¬

tificates

53

Co.,

How
right

the

bond

100

was

I learn

because

The

have

the flotation of $7,750,000,000 of IIV2 month 3V8% cer¬

11

LOS ANGELES, Calif.—Robert H.
Schock is now with J. A. Hogle &

market?

tone

the

of

to

through

51

11

to

Implications of Margin Cut

the

62

WItn J. J\. rlOgie

^

sector

continues

Treasury

1

—

4-u

term

The New Issues

16

...

attracted

^

conditions.

16

Carolina

be

extended due date.

near-term liquid Gov¬
obligations is as large as
ever,
sparked in some measure
now
by the uncertain economic

20

-

enough the owners of the out¬
standing bonds will most likely

for

21

(Special to The Financial Chronicle)

that
so
often
lecture groups and

m

$1,000,000,000,
3%s, a small is¬

ernment

32

"workable."
question

-

favorable

New Mexico

it is at least scientific,
reasonable, and in practice it has

up

of

market

New jersey

lute sense,

comes

short

1

W*fL

is

The
money

mand

long-

brings forth the opin¬

the Treasury,

in its ex¬
pected "forward refunding," maywant to use just such an obliga¬
tion.
If the coupon rate is high

being offered mainly
longer maturity area.

in the

a

bond

that

are

9

a
long way from "being able to
predict the market" in any abso-

proved

86

bas,sfor comparison 15 available-

ar-

this

28

ions

a

1968, does not crowd or
compete with non-Federal bonds
which

without offering a real

to

in

10

Hamps'hYre'.!!!!!

.

valid opinions as to

some

due

26

SJsiirn9inia

to

refunding

ties

term

as

74

From

possible

47

the
were

long a due date,
favorable to the capital mar¬
a
whole. This short bond,

ket

19

experience

"conclusions"

some

at

it

kept

which

with not too

30

Utah....

map

figure

this

and reopened the

56

Texas

large

a

87
114

Rhode island

which takes account of every fact
believed to be significant, as seen

adult classes

We don't
have to
have a
perfect record.
We can change our methods in
detail
without
feeling
"totally
wrong," as occasion demands. We

40

Ohio

daily

modest

sue

In
2

North Dakota

of

7
17

f,nd,sal«3
°f s'oclfs
on the Nf,w !3Ka"a::::::
Stock
Exchange,
usually Tennessee

practical goal than this
ego-drive to "beat the market" is

passing mark.

9
12

66

York

in

19

14

New

bonds

in

93

,

individual stocks.

45

••

JJ.inn.es?ta;

Explains His Own Method

of

62
87

83

North

portrayed

37
33

MSachuseits.'!.'!!.'!

Nebraska

My own methods are based on
inarket records;
to be specific
they are based on the purchases

X

Michigan.

Missouri.!!!!!!!!!!
Montana!!!!'!!!.!!!'

more

,,

is to say, what I believe would be

a

'*Jainf

Government

of the

offered

was

97

enough

.

37

2l

maPS.

rr-u

looking for,

26

New York

The

more

63

7

62

important than territories, even if
they are obsolete and inaccurate

"perfection."
we

Colorado

~

44

more

the

51

159

is

of

58

Georgia.!!!!.!!!!!.'.'

changes in the
world
of
reality.
On this last
point it has been said that some

,

J

California"!!!!!!'.!'.'.

IHdaa^ii*••••

the

people tend "to make

(<•)

10

of observed

count

^

<*)

situation

to

of

some

^

(=•")

13

add, delete, or rev
principles one
has established, so as to take acvise

.

54

difference."

a

be

to

^

«'!L.

Xm7

.

•

67

be

may

s

r

Florida.!!!!!!!!!!!!

years

matter, with the condition of the
and capital markets prob¬
dictating the method which

last week that the August matur¬
ities
would
be
provided
for

J

differences

what

see

conditions

.

J°"n"licut

and

the

The

It

see the
differences," that is to

"essential

so

8

rious

problem

Uni,

Also, to be able to

ago.

mmerce'

+•

\

who doesn't

understanding

ably

these

,

Alaska

not.

situation

situation

the

'

fuU+n^es

iSg**3'°6772

in

real

answer

money

of

was

whole. According to

%

Nr!Ze/ °f

the "similar-

see

this

Situation,

today

what

and

And to be able to

them

to

I

„rhnit

a

>?v°~
?'UT

1950"1960 decade:

all."

the

man

seriously

Treasury. And, in view
strong and improving con¬

dition

iosn

9«

Below is a list of the States and
the number of counties that gained
P°Pnlation during the

particular

what

Murine*

-3»070 counties had lost population
during the previous decade desPne a national population incr^ase of more than 19 million...

virtues, I would
consist in being able to know

say,

'lt.

t

on™

observers

to'"get

attempt

tha^ ha^f°the

more

e

fundamentals," (and I am
thinking, by way of example, of
Bernard M. Baruch, as I write)

with thousands of "maps" of other
stocks at various times under va-

be

may

hurt. And to the

more

things, and

of the

Treasury will handle
refundings is still supposed
pretty much of an open

amount

.

small> however, that final figures
may ,Fe ^ce
total number of
cooties f°r which losses are reP°rted. In 1950, the Census figs"°wed i'I
°
then

certain

a

be

to

tion of the

-

the

future

L,Ubl X UpUlctUUIl

lr.OCO£.

risk-

or

the

so

a

time,

"map,," this daily chart does not
tell
"all," but it represents an
integrated opinion, a concensus,

of

1/?

How

money and capital markets
putting the finishing touches
August refunding opera¬

the

Preiiminary 1960 Census figures

TT

But

stocks.

of

charts

And if his semantic orientation is

;

the

to

the

tion

The

on

.

.

.

industry

ing the capital it seems to me it
might be . important to establish
that
the
particular facts being

as

"probability"

TT

_

*LEotf

or whatever may or may
not have some ascertainable rela-

—,

facts

earnings,

CHIPPENDALE, JR.

would

averages

the Counties

ql

significant

a

T.

markets, the 3V8S
due Aug. 1, 1961, and the 3%s due will be used.
May 15, 1968, are reportedly mov¬
The fact that the Government
ing into strong hands.
The fact took care of the August maturi¬

i

growth,

that

Y

never

of

mi

_

counties

the problem. The stacollects on gross out-

on

of "the

"Go for broke."

not have

may

bearing

he will try to pick the "one best"
and plunge into it with all he has;
are

BY JOHN

that

exchange.

realizing that there
predictable factors, and

law

I .Acf PAnil mflATI

the

It isn't necessary to "know all."
In the first place it isn't possible,

"sells 'everything." % If there are
five stocks that look very good,

not

of

to

^^

Can't Know It All

before spending the
some

GOVERNMENTS

his

neces¬

Wizard

a

MOre 1 hail Hail

hrdL Pe?,p!re
wh0 Or
Tenny-

verse, "Flower in
Wall." ;VY;v V/e>-

You

tion

V;

.

who

be

are

"they can't go down much more,"" In the second place much of the
realizing that the stock data that is collected and tabuhas

be

Street. For if he could only
the very worst of his

not quite

Which

change

not

Wall

to

for

next year,

$100 to $10

him

provide him with the
security and profits he seeks.

Tell

little

Crannied

and

would

it

for

feel this way should read

son's

and

revise

to

operate

even

my

Our Reporter on

rele¬

were

restrain
his
"all-out"
ten¬

sary

faults the

about Bethlehem Steel, or
this yellow pencil I

or

about

facts

could

pos¬

sible to know all about the

21

eliminate

before

commitment in it.

a

ly

"maps";

that

ask yourself: how is it

me, or

he

dencies; and be willing continual¬

master
"know
all

situation

what

if

"either—or"

to

necessary to

every

making

vant;

inves¬

many

the

the way to master the stock

ket

He will

relationship

the

that seems
investors.

from

(why is it
the
market?)

simple

than

Glory
many

recognize

mind
frantic

of

peace

(473)

would learn to relate facts and to

profits,
bigger dividends

and

years

Search

tors

drive for

pay

cash

actuate

a

shown in the

as

.

the

P. Bradford,
,

v

This

cash

refunding was the
initial one for the Treasury and,
according to indications, it turned
out to be a successful operation
(very
small
allotments)
even
though some of the owners of the

Join

Henry, Franc

(Special to The Financial Chronicle)

BELLEVILL, 111.
Carron

and

Mrs.

—

Elmer L. Mc-

Laura

LeTour-

maturing obligations did not get neau have become associated with
as
many
of the new * securities,
Henry, Franc & Co., of St. Louis.
mainly the 37/s% bond selling at
a
substantial premium, as they Both were formerly with Fuszwould

have, liked

to

have

had.

Schmelzle &

Co., Inc%

f.

..

•

-

„

22

The Commercial and Financial Chronicle

(474)

STATE OF TRADE AND INDUSTRY

for the first 28

Continued from

75>932 ca*"s or 34/7 %

„arinff

Inventory

tual weekly production was placed

4

page

hie,w

.

higher

paring,

,

r

labor

C°Steel Service' center1stocks' have
continued
While

since

rise

to

Consumer

the

strike

demand

con-

tracted.^ The situation has
ated

severe

'There.- is
in

The

Machine

1960

in

Tool
ExpositionChicago, Sept. 6 to 16. A
fair guess is that 10% will be a
typical boost. ;

•

that

H

,

tons,
the

*19.8%.

or

industry

At
vir-

was

*Index

age

^

ftTZZ
steel union.
of

production is based

weekly production for
~

Car
.

.

T*

.

^"1950

aver-

1947-49.

Most of the sales and purchasing

weeks of

for

(right center) president of the Orovilie-Wyandotte Irrigation Dis¬
trict, by James A. Felchlin, resident partner in San Francisco of

output

Buick Special is now

current

50

one

week

F. S. Smithers & Co.

year

com¬

and

ago

corresponding week of
>

...

Intercity

1.2%

Truck

Below

.

statistical agency said that

U. S. auto production dipped 4.3%

Tonnage
of

Level

Was

1959

week

Intercity truck tonnage
week ended

of the 1961
in progress,

Ward's said.
The

with

rail¬

S.

net proceeds of a bond sale for con¬
(Calif.) Dam, is given to D. D. Updegraff

check for $63,997,533.65,

struction of the Oroville

originating this type

the

the

U.

Thursday, August 4, 1960

Complete Oroville Dam Financing

of
A

I

.

'

,

/'a'—''••
the

in

1958.

cording to Ward's Automotive Re¬
While

road systems

in

class

53

were

traffic
40

All of General Motors new/
medium-priced compact cars will
be in production by October, acports.

There

.

to¬

1960

increase

an

corresponding period of 1959, and
159-321 car? or
a.bove1
Htbe
corresponding
period
in
1958.

pared

„

™eek

*

*

,

-

on

Z'A Steel survey indicates weak- Ward's said that the September
enihg prices and price cutting on projection for the Oldsmobile F-85
many kinds of components metalis 5,700 units.
An
estimated
4,800
Pontiac
workers buy, including fasteners,
gears,
stampings, castings, forg- Tempests will be built in October,
ings, -electrical
components,
motors, and bearings.

294,524

in

«

tool

lines, such
as engine lathes.
Despite this, the
industry expects prices to go up
later this year.. Probable timing:

»

318,000

price cutting.
tough pric.e. fighting

machine

some

gener-

at

taled

.

July 23,

in the
1.2% be¬

was

low the volume in the correspond¬

ing

of 1959, the American
Associations,- Inc., an¬

week

Trucking
nounced.

Truck tonnage was 2.4%
ahead of the previous week of this

Z:-i:,%•
findings are based

year.
These

:

~

the

on

weekly survey of 34 metropolitan
areas
conducted by the ATA Re¬
search
Department.
The
report

in the week ended -inly 30, al- reflects tonnage handled at more
though "Ford Motor Co. resumed than 400 truck terminals of com^
price cutting will continue. Two normal operations. U. S. manu- mon carriers of general freight
favorable signs:; Inventory paring facturers turned out an estimated throughout the country.
is about over, and a general busi- 107,330 cars contrasted to 112,179
Lumber Shipments Were 0.4%
ness
upturn is expected in the in the previous week. In the same
managers

know

*

Steel they should
days -how long the

told

in -30

-

fourth

quarter.

Stock

by metal buyers
has gone about as far as it will go,
cutting

Steel

a

quarterly

Inventories
for

the

have

last

two

shows,
dropping

survey

been

week last year 122,518 cars were
produced,
Ward's said that General Motors

Production

Week

Lumber

Ended

Looking

During

July

23

Bros. &

•

group,

shipments of 464 mills

for

and American

34.5%

low

production

during the

industry indicates a further
shrinkage of consumer inventories,
One

mill reports that orders

big

lower

the

attributed

filled

orders

equivalent

were

H.

Hildeburn,

Jr.,

(left)

Salomon

*

.
,

plans

for four

.

>

,

'

,

storage

"

•

-

*

three

reservoirs,

•

power

plants, dams, tunnels and irrigation facilities are now being completed and actual clearance of land for the dam is underway.
Smithers & Salomon Bros. & Hutzler jointly headed an under¬
writing group which offered the bonds publicly on June 21, 1960.

week

ended July 23, 1960.
Motors, 9%.
In the same
An estimated 437,750 cars have week, new orders of these mills
be near, is appearing. More than
been built in July compared with were 3.3% below production./Un¬
66%
of the respondents expect 555,410 a year ago.
During June filled orders of reporting mills
stocks to be at present levels at
°f this year, 613,147 cars were as- amounted to 30% of gross stocks.
the first of the year. Nearly 27%
For reporting softwood
sembled.
mills, un¬

stabilizing trend, which suggests an upturn in purchases may

Ward's

William

are

and William W. Bertram, (far right) trust officer, Bank of

Construction

A

predict lower inventories.
Last minute buying in the steel

on

Hutzler, joint managers with Smithers in the underwriting

America.

share of the week's output was reporting to the National Lumber
56.5% while Ford Motor Co. ac- Trade Barometer were 0.4% be¬
counted

quarters.

Below

Wholesale Commodity Price

'

and 23,000 in the comparable week
last

Index Down to Lowest

to

-

For the current

year.

season

monthly production total to the 16 days' production at the current
Level Since June 1950
through July, exports were esti¬
early closeout of 1960 model run rate, and gross stocks were equiv¬
mated
at 7 6,892,000
bales,
as
Reflecting lower prices on some
by Chrysler Corp. and (S$tude- alent to 53 days' production.
grains, lard, sugar, lambs, hides, against 2,765,000 in the compa¬
For the year-to-date, shipments
baker-Packard and Ford Motor
rable
period
a
year ago.
%
cotton
and
rubber,
the
Daily
Co.'s Cleveland stamping plant of reporting identical mills were Wholesale
Commodity Price Index
Retail Trade
Close to Prior
3.3% below production; new or¬
strike during the month,
.

received

larger

after

July 1
those on

than

35%

were

the

books

dipped to 268.94
ri930-32 = 100)
were 4.9% below
production. on Friday, July 29 and remained
Compared
with
the
previous at the same level on Monday,
improvement in steel orders, out- this week while most assembly week ended July 16, 1960, produc¬
August 1. This was the lowest
put, and shipments this month, plants worked five days, including tion of reporting mills was 21.5%
level since the 268.30 on June 30,
Steel estimates August steelmak- American Motors.
Buick phased above;
shipments
were
20.6% 1950.
'
ing operations will average about out its 1960 model run on July 29. above; new orders were 2.0% be¬
Although trading was good, corn
low.
57%
of capacity
(vs. 51% last
Compared with the corre¬
The reporting service added that
prices dipped somewhat
during
month).
truck output increased 6.8% dur- sponding week in 1959, production the week as supplies were
ample.
Last
of reporting mills was 10.8% be¬
week, mills operated at
[ng
jatest week.
Total units
With an increase in new crop of¬
53.8%
of capacity, a half point
were 22,095 vs. 20,680.
Most truck low; shipments were 14.2% below; ferings, oats prices declined
below the previous week's revised
and new orders were 19.0% below.
plants
operated
on
a
five-day
slightly despite steady transac¬
rate. Output: 1,d33,000 ingot tons,
schedule.
However,
Chevrolet's
tions.
Upturn in Business Failures
Scrap, a bellwether of the steej Atlanta iine was closed all week
Both domestic and export buy¬
for July 28 Week
industry s
operating
rate,
adr ancj
Janesville line was down
ing of wheat expanded from the
vanced last week despite a lack
Commercial and industrial fail¬
three days for inventory adjustprior week and prices climbed
cf heavy mill purchases.
SteeVs ment. White Motor at Cleveland ures rose to 293 in the week ended
moderately. In some markets there
price composite on No.
1 heavy was on vacation,
July 28 from 259 in the preceding
was
a
shortage of boxcars and
melting grade was up 16 cents to
week, reported Dun & Bradstreet,
storage space for wheat. There
$31.83 a gross ton, highest since
Inc. At the highest level in the
Electric Output 7% Above
was a slight increase in rye prices
last five weeks, casualties were
1959 Week
May.
and volume was steady. Smaller
Despite disappointing sales, U. S.
heavier than a year
The amount of electric energy noticeably
than expected stocks, unfavorable
aluminum producers are set pri- distributed
by the electric light ago when 252 occurred, and also
at the start of the month.

Ford's compact car lines

The industry looks for a modest

uled

production

sched-

Week

ders

t

and

Continued

six-day basis

on a

motions
many

Year

clearance

and

Ago

sales

pro¬

pleasant weather ih
held over-all retail

areas

trade close to the prior week

and

volume showed little change froma

While the buying of

ago.

year

men's

furniture,

apparel,

linens,

and

hew passenger cars was up
somewhat from last year, interest

in most major appliances, floor
coverings, and draperies was down
somewhat.

Purchases

of

food

.

mary to turn out record tonnage
this year. Steel's forecast: Close to

and power

industry for the week
ended
Saturday
July
30,
was
2,060,000 tons (vs. 1959's record estimated at
14,746,000,000 kwh.,
1,953,175 tons). The industry pro- according to the Edison Electric
duced 1,007,393 tons in the first
Institute. Output was 321,000,000
half and is currently producing at
kwh. above that of the previous
an annual rate of 2,061,000 tons.
week's total of 14,425,000,000 kwh.
While
hopes are high for a and showed a gain of
971,000,000
fourth quarter rebound, producers
kwh., or 7% above that of the
will

end

the

with

year

pretty

comparable

hefty unsold stocks (they're esti¬
mated at 30 days and up now).

1959

on

55.1% of Jan. 1, 1960 Capacity
The

American

Institute

erating
panies

Iron

announced

of

rate
will

and

that

the

steel

average

Steel

the

op¬

com-

*97.7%

of

steel capacity for the week, begin-

ning Aug. 1, equivalent to 1,570,000 tons of ingot and steel
castings
(based on average weekly production

of

1947-49).

These

figures

compared with the actual levels of
*94.6%

and

1,520,000 tons
week beginning July 25.

in

the

Loadings

ginning July
to

53.3%

Jan.

1,

25, 1960 was equal
of the utilization of the

1960

14R f»70 Q70
148,570,970

annual

npt
net

percentage for
cast

based

capacity

tnnc
tons.

this

on

that

of

Estimated

week's

Rise

1959

fore¬

capacity

is

55.1%.

15.5%

the operating rate
1947-49 weekly produc*74.9% and production

(based on
tion) was
1,203,000 tons. A

year ago the ac-




in

the

compar¬

failures

involving

liabilities of $5,000 or more, which
climbed

to

previous

262

week
Small

from

and

last

230

228

casualties

numbered
29

in
a

the
year

under

31

compared

week.

Liabilities

above

ranged

$100,000 for 36
failing
concerns

of

freight for the week's
as
the week
ended July 23,
1960, against 37 in the preceding week.
totaled 619,784 cars, the AssociaWholesale Food Price Index
tion of American Railroads an¬

Loading of

nounced.

83,389

revenue

This

cars

was

increase of

an

15.5%

or

above

the

corresponding

week
in
1959,
affected by the nation-

ing

Unchanged From Prior Week
The

Wholesale

Food

Price

In¬

dex,

areas,

market

meal

prices
a

and

move

a

some

grow¬

oil and
soybean

better

helped
up appreciably from

week earlier.
A

in

decrease

moderate

flour

prices

as

occurred

trading lagged.

export interest in rice
domestic
trading
showed no change from the pre¬
ceding week and prices were un¬
changed. Negotiations were pend¬
ing for sizable quantities of rice

Although
moved

up,

to be sold to

India, Indonesia and

Pakistan.

Sugar trading slackened during
week and offerings expanded

the

resulting in

a

Volume

coffee

prices

in

slight dip in prices.

was
light and
within a narrow
finishing unchanged from a

moved

compiled by Dun & Brad- range
which was
street, Inc., stood at $5.91 on July week earlier. Cocoa
prices slipped
wide strike in the steel industry, 26, unchanged from a week
earlier, reflecting dull trade.
and an increase of 11,719 cars or but was down 0.8% from the
$5.96
A fractional increase occurred
1.9%
above
the
corresponding of the similar date a year ago.
in hog prices as trading moved
week in 1958
'
Moving upward in wholesale up; there was a slight rise in sal¬
Loadings in the,week of July 23 cost this week were wheat, bellies, able supplies in most markets.

12,703 cars or
preceding week.

2.1%

above

milk,

and

hogs.

function

trend of food

or

highway' trailers
mgnway
iraners
the

week

(which
week's

were

revenue

to
savback)
(piggyback)

ended

over-all

reported

cars
more

July

in
in

16,

1960

included

in

that

total).

This

was

1958

week.

Cumulative

piggyback loadings

sale

is

level.

show the general the week ended last Tuesday were
prices at the whole¬ estimated at 132,000 bales, com¬
pared with 79,000 a week earlier

to

1959

week.

in

a

week

1%

ended

July 27

below to 3% higher

according

ago,

year

estimates,

spot
&

the

from

was

than

Bradstreet,

to

collected

by Dun
Inc. Regional esti¬

mates varied from the

comparable
by the following per¬
centages: Mountain
+2 to
-f6;
Middle Atlantic +1 to +5; East
levels

1959

North Central 0 to -f 4; West North
Central —1 to -|-3; New England,

East

South

Central,

and
West
+2; Pacific

South

Central —2

to

Coast

—3

South

to

-fl;

Atlantic

—5 to— 1.

Nationwide Department Store

Sales Up

3% Over 1959 Week

Department
store sales
on
a
country-wide basis as taken from
the

Federal

dex

for

1960,
over

the

an

Board's

in¬

ended

July 23,
increase of 3%

like

period last year. In
week for July 16,
1% was reported.
the four weeks ended July 23,

preceding

For

was registered over
period in 1959 while the

same

Jan. 1 to

2%

of

increase

1%

the

Reserve
week

show

increase

an

a

the

the

July 23 period showed

a

increase.

According to the Federal Re¬
System
department
store

sales

1959 and 4,561 cars or 91.2% above

9,563

one

in

re¬

unchanged from the simi¬

The total dollar volume of retail

trade

serve

the

were

Lower

lar

in prices on

increase of 2,032 cars or 27.0%
above the corresponding week of

There

loaded with

eggs,

mained

Wholesalers reported a

slight rise
price were flour, corn, rye, oats,
steers despite sluggish
hams, sugar, coffee, cottonseed oil, transactions. Lamb prices dipped
cocoa, and potatoes.
slightly from a week earlier, but
volume was steady.
The
Dun
&
Bradstreet, Inc.
Wholesale Food Price Index rep¬
Spot cotton prices on the New
resents the sum total of the price York
Cotton
Exchange finished
per pound
of 31 raw foodstuffs fractionally lower than the prior
and meats in
week
as
trading
was sluggish. Ex¬
general use. It is
not a cost-of-living index. Its chief ports of United States Cotton in

the

an

A month ago

271

among

with

Week

were

Actual output for last week be-

place

earlier.

week,

weather conditions in

the

Most of the week's upturn took

$5,000
Car

Over
This Week's Steel Output Based

exceeded

able week of 1958. Also, business
mortality edged 2% above the
pre-war level of 291 in 1939.

products and women's apparel

in

New

York

City

for

week

ended

were

above

the

last

July 23
like period

the
9%

year.

In the

preceding week ended July
16, sales were 3% above the same
period last year. For
the four
weeks
crease

period,
23

the

July 23 a 6% in¬
reported over the 1959
and from Jan. 1 to July

ending
was

there

was

level

period.

a

gain of 6% above

achieved

in

the

19511

Volume

192

Number 5974

.

.

The Commercial and Financial Chronicle

.

(475)

PAT1CllyVlAT»
UIIlt/1

_

IVirlnn-fwr
inUUolI V

VjL tXllL

;

.

.

..

,

H^AAC

X

vlnvnrma

cXUt/O

for

•'

public knowledge and acceptance

answer to the basic problem that
we ought to "junk" the old small

business

our

the

the

original

tions

there

so

necessity

and

to

restrictions

"percent

is

no

include

modern

the

a New United Effort

1 know the Consumer Finance
industry can sell a new approach.
"

the

Banks,
Industrial
Banks, etc. have actually "pushed"

Experiences

the

loan.

Some

refunds

in

k A

the

event

of

pre-

Payn}ent; The rate section should
be simply drawn so it is easily
^n<derstood by the lender and the
borrower. Such a provision is
workable,

!

Calls for
Where :

Law

Isn't

loan laws and start anew?

month"

statement of the rate of charge in
laws today.
Model

approach.

reffula-

per

It

handling

easily

explained

and

understood, and is not subject to
gogk? at*ack*
There should be some penalties
mcluded in the bill tfor an overchai'ge ?? f(>r doing business with0
license.
...

.

legislation for Consumer Credit,
they had no difficulty in selling \ A provision should be made for
legislatures on enacting simple full disclosure to the borrower of
get together to see if we could enabling
legislation.
When
the the amount of charges in connecdraft
a
proposal for a "Model Sales
Finance
business
sought tion with his loan.

couple of years ago the attorneys and principals of five of
the larger companies arranged to

Consumer

how

Finance

other

Law."

:

Some-

legislation, it too experienced

real difficulty in pointing out the

office to make up
the first proposal to be circulated

desirability of simple, workable
statutes. So we too must take the

for

same

gated

to

the

companies.
draft

law.

six-

a

all

of
in

these

among

As I recall,

with

tial

was

our

discussion

out

task

Before

started

we

or; .seven-page

considered

we

good

a

five

essen-

installment

loan

approach,

with

and

effort it will succeed. '
I have been told for

a

A provision

no

dele-

or

introduced

is

Congress along

in

Jl

and

of

forcing

and

Pv»^vhl/^-rr» O ?-harge shouldI be made! for de- these same lines.
IUUlt;Iilb lm(iuency, and a provision made
Last year Senator

Ofc/1 lUUb

Continued from page 7

longer

e separately for sufficient fees though it is not in existence toto cover the services of making day, almost every year some bill

y

_

united

lawyer mitted

to hold such views I have ignored
or failed to take into account the
social justification or consider the
legal basis of the Small Loan

should be included

enabling the lender to require
credit insurance on exactly the
same basis as
any other creditgranting agency. It is inconceivable to me how we have perspecial

provisions

to

be

inserted in loan laws with respect
credit life and credit accident

to

Tennessee

Gore

introduced

of

the

so-

a

we

year

nnrtnc

^^nno

c

thp«p

tViiVmtjp

hppn

imnnrtanf

Viron^

pf

not

on/i

nil

our

onm

require

type

of

tax

would
dollars.

regulatory

a

enforcement.

and* I

ever stated.

vigorously

However,

predict

Credit

sumer

unless

the

Industry

opposes

Con-

not

only

these,

but

This year we are all familiar comes forth with constructive,
and have read and heard of Sen- sound legislative programs to be
ate Bill number 2755, which has enacted in all the states, it will
become laiown as .the ^"Douglas be a forerunner to rate regulation
'
ar}d the one in the House,
118b7, introduced by Conpressman Oliver of Maine. These
bills purport to require full dis-

out of Washington, D. C., as well
as regulation of all other phases
of our business,
If we don't awaken to the chal-

^tes ot charge. In the
mar\y hearings
an
7?}tnesses
*Jfj,,w.,1 tnnkl

lenge and get these loan laws—*
all* Consumer Credit laws—on a
simple, workable basis which
people understand and which' are

R.

11 •

°

q

u

_vv.

„

uav^i^PGa+~

^

S eaY a
ec°n°mical to operate
uf r,uWf will have no one to
I+1 econom.lc blame but ourselves if we do .wind
flJh^II- 5e °nG -*n UP subject to Federal regulation,

linrlg

ri

fho

l,,r

♦An

f.a\,F

ono

our

power or agency as big or bigger
than the O. P. A. to attempt any

cial reports to the Federal Government. The purpose? None was

iTBipr^toSte

on

legislation
of

called "Finance Companies Regis- this is just another one of the
tration Act." This would have re- steps directed toward transferring
quned lenders and sales finance power over business from the
companies to furnish full finan- states to the Federal Government,

finished, approxiand health insurance, fixing pre- L
PH
,
.
.S g
■
later, after inmiums or providing restrictions p.",,™
A
numerable
meetings, this docu-jbusiness and the constitutional which differ from the general
ment had grown to approximately problem of classifications, etc. All credit field, as though we were May
™?nriP=ntari!w™

mately

such

take millions
would

23

Minnesota

joined

and

in

address

bv

William*

Mr

y£T * Un,ve"lt>'' Arden

H.»

intro-

J-J

l
„

,

__

__

__

before

the Consumer Credit Management Conference Panel Conference, Graduate School

LOS ANGELES, Calif. Prominent
c»l!A,onr^S speake.rs from the banking law,
senate suo-com- education and motion picture
cr,oalrl-„tf
mnc
fields WJ11 addr®ss the 38th annual
/7

uatiorTin

particular"

ing as a lawyer, the social justification is no longer necessary and
respect thereto. As I the constitutionality of an enareviewed this, I couldn't see where bling act would not have much
they had materially improved on difficulty before the Supreme
our first draft, and they had cerCourts of our States.
insisted

a

State, and
provision be in-

some

eluded with

tainly

included

many

increasing the cost of
tions-

provisions
our

opera-

'

As

remedial
written in
sumer

what

legislation.

Insurance

connection

with

con-

loans,
sales
finance, or
have you, ishould be con-

trolled by the insurance laws—
not by specific provisions in loan

laws. Of course the lender arpany, I have been told such views ranging for such insurance should
^onyot recognize the present tend- be compensated for its services
executive

an

of

my

com-

J" Afp"
r(Tnpra 1Tv

w:^rJr* ,t^f0sne1nconvention of the National Assof thd
P^t fnvnlvpH in
cmtmn ofBank Women Oct .10
G d rh Jr
Ii a^the, HuntinStoa:Shefaton
ing
' h items
insurance
aCCrf2?
an
miums
recording
fees
etc )
in wnS!!
St
general conw

as

ore-

1

^ aSSET

; ; Our own National Association ency of some "fringe" members

to a reasonable profit action which involves a charge of Western Bank and Trukt
similar committee to of our industry to gouge and cheat therefiom.
gny kjnd( and then require that Pasadena Main Qffi
Pasadena:
come up with a proposed
Model the public. I feel this is highly
other
the dollar cost be translated into
They are:
Law,
which is in process and overstated
While there are those
Uner Provisions
an
expressed percentage of the
Carl Bimson, President, Ameriprehnunary drafts have been pre- who would be short sighted enough
pro- princi ai amount
annum
can
Bankers
Association,
and
pared. This committee separated to try to circumvent an enabling visions do ve need/ The above
nf ValW N'ntinnni Tinnir
loans
into
two
classifications— act, I feel without great difficulty elude the three elements which
Impracticality of Proposed
Phoenix
Ariz
loans up to $1,500 and loans over sufficient sanctions can be written we have always been told are
Disclosure Laws
Milton F
Darr
Tr
Pre^idont
$1 500
Separate proposals for a into the law to stop the cheats
Produce sounc1 loan
In the
£irst
place, any such American institute o'f Banking,'
'Model Law
have been drafted and yet allow the
ethical, responproposals (which are a throw_ and Vice-President, La Salle Nafor each classification. The strange sible business concern to
engage ot
general public, it puts the 5^ ^ the proposition that debt tional Bank
Chicago.

appointed

a

Co!

...

-

vj9^f «ian these what

'ef0fhlatlon' From the standpoint

of

part

situation

the

is

that

the

in

business

proposal dealing with loans

up

$1,500

while

in

$1,500

the

that

contains

covering

35

pages,

loans

to

productive
our

in

efficient-and

an

manner.

The problem

present small loan

law is
restrictive

f^L111^
us to have

license,

trom

the

standpoint of the borrowing pub-

of ^consumer is bad and
shouid

be

required

to

you

portray

it

jn the most unfavorabie light) are

Hon. Mildred M. Lillie, Justice
of the Appellate Court, State of
California.

and
he, it gives lull protection by impractical because in
computing
Mrs. J. Maria Pierce, educator
adopted to stop the few reason ol .the lull disclosure and simDle interest on installment ob- and civic
leader, Pasadena.
;opinion the latter is just as effee- who have become a strait jacket
penalties^ lor overcharges. I rom iigations with a dollar-cost, no
Jerry Wald, 20th Century-Fox
tive and will accomplish the same for the entire industry.
the standpoint ol the lender, it two peopie ever come up with the Film Corp., producer,
objective with respect to both
gives him a workable rate pro- same result. Conversely,; when
Miss Helen L. Rhinehart, Presiclasses of loans, at much less cost
Where Should a New Approach
vision which permits efficient optrying to compute dollars of cost dent, National Association of Bank
than the first.
eration of his business
it puts
under a "percent ner month" type Women,
and
Vice-President,
From my experience,
most if
Just where should a new ap- him in a position to compete with of statute no one" ever comes
up Brenton Companies, Des Moines,
not all of the restrictive provi- proach begin?
I have heard the other credit-granting agencies.
with the game figure on #ie dolIn addition, there will be panel
sions
in
our
present loan laws idea expressed the proper thing
If we will adopt ah approach iars.
discussions
covering
"Women's
■have been brain-children of some- for the loan business is to pro- such as outlined above
which, I
1 think I can say without fear Viewpoint in a Changing World"
one in the industry itself. It seems
pose a simple amendment to the repeat, fully protects the borrow- 0f
contradiction
the
Consumer and
"The
Changing
World
of
that each one who works on pro- Usury Law—let anybody operate ing public and enables the small
Credit Industry as a whole has Banking."
posed legislation feels required to under it, and provide a severe loan lender to at least compete, been
striving
since
the
early
All NABW members hold execuadd one section, and this is gen- penalty for overcharges. Person- we will get away from much of
1930's to provide the borrower, or tive positions in banks. The group,
erally another limitation or re- ally, I might be inclined to agree the controversy which has plagued
purchaser, with a full disclosure organized in 1921 with 16 memstriction.
with this view, but I am afraid our business.
of the charges in terms of dollar bers> now lists more than 3,500.
,A
+.
J]1? industry has not yet reached
As j have said, all of this en- cost, which he really understands.
Criticizes Archaic Operating
thls point. By holding this as the
tajjs a new iGOk at our business. As a result of these efforts, we
Stovall Research Mgr.
F
ctlces
ideal on one hand, we should try We must get off the defensive and find almost every state in the
p
p
p
Ce\
For many years Consumer Fi- to approach it as closely as postake
a
p03ition
as
responsible country has already enacted or is
ror il. r. nunon \,o.
nance
companies have operated sible,
and
certainly
legislation members ofr the business comconsidering
legislation
to
ac- Robert H.
Stovall has been apunder loan legislation in most of should not be any more restrictive
munity who are asking for no complish this.
pointed manager of the research
; our States. We have all seen and than necessary to protect the pub- more
than
reasonable
statutes
There are several other features department for E. F. Hutton &
been
a
part of an industry of lie and permit operations to be which will enable us to
carry on
of these proposed bills which are Company,
61
Broadway,
New
which we can be justly proud—a conducted thereunder in the most
our business at a profit and to the
very objectionable. For example, York City, New York Stock Exbusiness which has expanded and economical way
possiblesbetter service of the public.
these measures provide, among change
members,
it has been
grown and served the
needs of
j WOuld list the requisites of a
other
things, that anyone who announced by Richard B. Fant,
the public. However, I am firmly
good> constructive, adequate, proWarns of Government Entry
fails to comply is liable for dam- partner in charge of investment
convinced our business is really
gressive Consumer Installment
What I have said about our own ages
of
$1,000
or
double
the research and advisory services,
starting to suffer because it has Loan Law as follows:
Consumer Finance companies ap- amount
of
charges involved,
Mr. Stovall, joined the brokernot kept its own operating pracA^simple licensing. provision, plies in varying degrees to all the whichever is the lesser, and for age firm in 1953 as a senior
tices abreast of the times—we are
anowing any one with a good institutions engaged in this busi- attorney
fees to the so-called securities analyst,
trying to get into outer space in a
character and reputation and suffi- ness- 1 am sadly afraid if we do "aggrieved" party. What a fertile
horse and buggy. The cost to the
cient financiai resources to obtain not get away from these restric- field for certain types of lawyers!
With Eastman Dillon
loan
industry and to
the bor- a license. Our
present licensing tions and the hodge-podge of state In addition, the bills provide very
■
_Fastman
rower of
operating with obsolete t
t
f "convenience and advan- laws, v/e will see the entrance of stringent
penal
provisions
for
ra.
r,asiman
over

'contains only seven pages.

In

my

regulatory

measures

.

,

.

.

.

•

-

.

.

.

.

„

_

.

...

•tools is astronomical!
The

economic

^the

views

of

our

country have changed and if

our

business is to prosper and grow—
or

in

fact

Sixties,
and

hold

its

keep

abreast

rest

nity.

of

own—in

the

totally unnecessary, unworkable, arid help
keep the "loan shark" stigma on
our

days and

are

of

the

We must

our

outlook

to

the

thinking

of

business

commu-

start from

a

new

Rate
We

Statement for Borrowers
should

have

a

rate

state-

for what and how much he

approach, not merely amendments
by adding a section here or chang-

will

ing

cient to pay the costs of the money

one

there in the old-fashioned

"remedial"

haven't

yet

small

loan

taken




a

laws.

really

We
new

pay.

maximum

lent,

with

thereon.

It

Government

into

the

lation.

ment which actually tells the borrower

Federal

should

interest

contain

charge

a

suffi-

a
reasonable
profit
Secondly, it should pro-

violations.

direct regulation of the Consumer
These bills are another attempt
Installment Credit business. In my by the liberal bloc in Congress
opinion, such a step would be the who have now discovered there
farthest thing from "constructive,
adequate and progressive" legis-

business.

must change our view

modernize

the
.

we

remedial

Over
years

the
we

past
have

three
seen

or

four

increasing

is

a

political appeal in such

the

consumer,"
consumer

such

"protection")

governmental interest and activity from the states
in the Consumer Credit field. All

of

us

well

remember

tion W, the expressed
which was a wartime
gency

regulation.

Regulaof

rights

and

ment

of

purpose

to

great

and

from

However,

emer-

even

a

whether
needs

the

a

or

in

not

take away
few more of their

as

a

subject this segbusiness community

up

National

leading

ex-

that William B.
associated

Philadelphia
dGiDhia

office

Bank

with

Phila-

Building,

registered representative,

AA/itJi

VYlin

control
expense

and

en-

Havden
Stone
nayaen, oiu

(special to the financial chronicle)

to

setting

other

"
now

desires

to

bureaucratic
Washington. The

involved

or

and

is

Harrison

pro-

posals which they claim "protects
the

SUphan^e
JEr°

PORTLAND, Me.—Paul E. Parks
has become connected with Hay-

Stone
Building.
den,

&

Co.>

Casco

Bank

nit

24

twHmwniMnmwwi'm'WWi

t>

m

'if

Ni.ti

|*Vll'i"

The Commercial and Financial Chronicle

(476)

.

.

.

Thursday, August 4, 1960

locally as much manufacturing, production, and handling earnings public can be reached through
purchasing, research and other among their national subsidiaries mass media, especially on matters
activity as can be economically if local interests acquired sub¬ of general interest.
Specialized
justified. It involves encouraging stantial equities in such subsidi¬ media such as trade journals can
the growth of supplier industries. aries.
carry
more
detailed information
But it is important that man¬ on
And it also embraces the com¬
company
operations with
pany's contribution to social prog¬ agement know the nature and greater frequency directly to spe¬
situation in its principal operating
ress
by assisting local communi¬ extent of any public dissatisfac¬ cific groups.
And the company
areas overseas.
This analysis re¬
ties to develop better educational, tion with company policies, and can also develop its own media,
quires a clear definition of the medical and other
public services. that it carefully Weigh this with such as magazines,
newsletters
various groups that are interested
other considerations in determin¬ and
booklets,
to
communicate
(3) Does the company have a
or involved
in the company's ac¬
ing whether changes in existing with important groups that cannot
tivities, and whose understanding satisfactory policy for recruiting,
policies and practices are war¬ adequately
be reached through
and support are essential to its training and promoting nationals?
ranted.
This process is essential existing commercial media. Such
This
includes
such
matters
as
success.
These groups usually in¬
to
an
effective 'public relations company publications usually are
preferential employment for na¬
clude:
,; ;
required for employees, employ¬
tionals, well-designed training program.
The company's employees and
If, as is not unlikely, manage¬ ment recruits, dealers and distrib¬
programs to accelerate the move¬
V their families
V
ment
discovers
that
irritating
mat¬
ment of nationals into managerial
utors,
customers
and prospects,
Other residents of communi¬
ters can be modified or adjusted and sometimes for local communi¬
jobs, and a completely open road
ties where the company operates
enterprise, ties, The subject matter of all the
to all top management positions without harming the
Local, regional and national for
it will be in a stronger position company's
communications
can
qualified nationals.
r: government
'
to
achieve public understanding also be planned to ensure that it
(4)
Does
the
company have an
The
company's shareowners
and support. If, in other instances, accurately
represents
corporate
effective program for selecting and
and prospective investors ■
management concludes that the policy and activities, meets the
Customers
and
prospective training Americans who are sent enterprise would be damaged by editorial requirements of commer¬
abroad? This involves a conscious
customers
meeting unreasonable public de¬ cial media, and is sufficiently in¬
Licensees, dealers and dis¬ policy of selecting the best rather mands, it will know the impor¬ teresting and relevent to the vari¬
than the most expendable Ameri¬
tributors
tance
of
devoting
substantial ous audience groups.
cans from
the domestic organiza¬
Suppliers
effort to helping the public ap¬
tion for overseas work. It includes
(5) Adequate resources to carry
The
business
and
financial
preciate the company's side of the out the program. The manpower
intelligent procedures for deter¬
community
situation.
and financial requirements of the
Communications media (press, mining the adaptability of such
Americans and their families to
public relations program can be
How Is an Effective Public
trade journals, television, radio)
spelled out in detail.
The com¬
foreign service.
It involves ad¬
Relations Program Developed?
These
groups
should, be pre¬ vance
position
and
responsibilities
of
personnel planning to en¬
Once management has analyzed
cisely defined and ranked in order sure
the public relations staff can be
adequate lead-time to train
of
its public opinion situation and defined. If
importance.
This, of course,
appropriate, the com¬
people for specific areas overseas.
will vary according to the com¬
considered the policy factors in¬
And
it
includes
sufficient
lan¬
pany's relationship with a profes¬
volved, the next step is to develop sional
pany's
operations
in
different
public relations firm can be
guage
and
cultural training to
a
written
countries.
public relations pro¬ specified. And the entire
program
equip people to function effec¬
gram. The program needs to be as can be
Then representative samples of
budgeted to provide man¬
tively upon arrival in new foreign
carefully planned as any other agement with accurate costs for
each important group should be
posts.
Such considerations also
important managerial function. A each
interviewed to determine:
extend
to
activity.
company
cooperation
well planned public relations pro¬
What proportion of the group with
overall
business
organiza¬
(6) Evaluation of the program's
gram usually includes the follow¬
tions
which
are
knows of the company
effectiveness.
helping
train
Provision
can
be
ing elements: ^
How
made. for periodic evaluation of
many
of these people Americans for overseas work,
(1) A statement of the com¬
know what the company does, such as the Business Council for
public relations activities so man¬
pany's public opinion situation in agement can
International Understanding.
what products it makes
judge performance
each
country.
This defines the against
What these people think about
objectives and in relation
(5) Does the company conduct
environment in which public re¬
the company's policies and its
to
costs.
relations
with
host
Resurveys of original
govern¬
lations must operate, and high¬
audience
products
ments
with sufficient
skill and
samples, for example,
lights the main problems and op¬ can demonstrate
(
What they consider the com¬ sophistication? This involves such
changes in the
that must be
dealt awareness and attitudes of various
pany's relative
strengths and matters as the extent to which the portunities
with.
These
may
include
such
weaknesses
groups
toward the company.
company
can
promote its eco¬
matters as inadequate recognition
What they would like to see nomic self-interests and
Regular evaluation can keep the
support
of
the
company,
misconceptions
the company do in the future
broader measures for improving
public relations program adapted
Where they get their informa¬ local economic and social condi¬ about its role in the local econ¬ to
changing circumstances.
omy, and pressures for discrim¬
tion and impressions about the
tions, without becoming a partisan
All the foregoing steps demon¬
inatory
treatment.
company
target in domestic politics. It em¬
strate
that American
companies
(2) Establishement of specific
Such an audit is extremely braces the company's communica¬
can
develop international public
public relations objectives. These
tions
activities
with
influential
valuable
to
relations programs as systematic¬
management,
espe¬
spell out exactly what public re¬
cially in overseas operating areas. sectors of public opinion on ques¬
lations is expected to accomplish. ally and effectively as they have
of
a
controversial nature.
It pinpoints public opinion prob¬ tions
Some public relations tasks are de¬ planned manufacturing, marketing
lems and opportunities that other¬ And, in many countries, it touches
and other activities overseas.
But
signed to support operating phases
wise might be overlooked. It en¬ the very delicate policy problem
the real problem is not a lack of
of the business such as marketing,
ables management to gauge the of maintaining good relations with
for
undertaking
such
personnel recruitment and labor capacity
relative importance of such prob¬ the incumbent government while
relations
programs.
The
relations. The public relations ob¬ public
lems and opportunities, and there¬ developing adequate contact and
real problem is that most Ameri¬
jective with respect to marketing,
with
opposition for
by
establish specific
objectives relationships
can, m anagem ents do not yet rec¬
example, can specify the fa¬
for its public relations activities. groups that are likely to become
vorable attitudes that need to be ognize the seriousness and impor¬
And it provides management with the successor government.
tance of public opinion to their
created
among
customers
and
a
bench mark against which to
(6) Does the company cooperate
own self-interests
abroad. There¬
prospects—in terms of such cor¬
measure
the effectiveness of its effectively on broad policy mat¬
porate attributes as research and fore, they fail to see the need for
ters
with
other
companies, and
public relations program by sub¬
such public relations programs.
engineering as well as product
sequent surveys of the same with U. S. Government agencies?
advantages. Other public relations
What Are the Consequences of
This
involves'
such
policy con¬
groups.
tasks are designed to cope with

PublicOpinion—AchillesHeel
Of U. S. Business Overseas?
Continued from page 13

disregard the company's efforts as
i

propaganda.

So, What Should American
Business Do About the Situation?
The

indispensable first step

is

for top management to give seri¬
attention to its public opinion
This should re¬

ous

situation abroad.
ceive

the

same

kind of organized

attention

executive

the

as

com¬

pany's
financial,
manufacturing
and
marketing activities.
There
several

are

reasons

why the pub¬

lic opinion area deserves this kind
of top management attention:
1.

from

know

We

substantial

American

experience that favor¬
able
public opinion helps sales
whereas unfavorable public opin¬
ion hurts sales.
mon

It is simply com¬

for customers to prefer

sense

to
buy
consumer
or
industrial
products
from
companies
they
know and regard highly.
That is
why there is a strong correlation

between company recognition and

reputation, and sales success. And
this is even more pertinent abroad
where many U. S. firms are com¬

paratively
unknown
and
must
acquire sufficient recognition and
reputation to compete effectively
long-established local com¬

with

panies.

A;:-

We know from American ex¬

2.

perience
that
favorable
public
opinion helps attract capable em¬

ployees

develop

and

managerial

On the other hand, unfav¬

talent.
orable

public opinion is a serious
obstacle to recruiting and develop¬
ing qualified personnel.
People
naturally prefer to work for com¬

that

panies

have high prestige.
important abroad

This is especially
where
for

U.

firms

S.

relatively
with

talents

must

compete
skills and

scarce

prestigious

national

companies.
3.

We know from American

perience

that

ex¬

favorable

opinion
among employees, their families
and
community neighbors helps
improve productivity, product
quality and plant safety.
Con¬
versely,
unfavorable
opinion
employees tends to im¬
labor-management relations,

among

pair

reduce

productivity, and increase

costs.

Workers

naturally

more

cooperative

toward

feel

man¬

agements which encourage "twoway" communications
and
con¬
sultation.

This

is

also

portant abroad where
unions

are

workers

quite

im¬

labor

many

more

radical,
and
suspicious of

more

American management than in the
United States.
4. We know from American

ex¬

perience
that
favorable
public
opinion enables management to
function

with

ity

efficiency;

and

maximum

flexibil¬

whereas un¬
opinion invites

favorable

public
governmental harassment which

hampers

efficiency and

costs. Government

boosts

naturally tends

to intervene in the economic
tor

when

private

enterprise

sec¬

ap¬

to be unresponsive to public
opinion.
This is extremely im¬

pears

portant

abroad

where
public
basically skeptical of
American
business,
and
public
officials
are
tempted
to
curry
popular favor by cracking down

opinion

on

is

large U. S. companies.
other public

opinion

factors can, over a period of
years,
-make a considerable difference in
the

profitability of

-They

can mean

tween
-

a

an

enterprise.

the difference be¬

losing venture

and

beget expropriation, they
mean

the

difference

successful

enterprise
terprise at all.

-

a

suc-

Cessful venture. In extreme cases
where cumulative grievances
can even

between
and

no

a

en¬

It should begin with

-

of

the

company's




an

analysis
public opinion

,

siderations

What

Does

Audit Disclose

An

other

and

as

whether

American

foreign

companies in
About Company Policy?
the same industry can or should
work
together
to
develop
favor¬
The process also identifies any
able
governmental
and
public
possible policy deficiencies that
the company might need to cor¬ opinion toward their activities. It
rect

before

public

it

can

expect to

confidence

and

earn

support.

also involves the extent of Ameri¬

companies'

can

local

business

cooperation

interests

with

in

jointly
cause
the
best
communications promoting public support for free
enterprise activities, such as the
program cannot persuade people
Business Council for International
to
like
bad
policies, any more
Understanding is doing through
than the best advertising
This

is

important be¬

extremely

program

can

of

sell

bad

policy

products.

(1)

The kinds

considerations

likely to show up
opinion audit are:
Has

the

in

that
a

public

created
national

company

acceptable degree
participation in the

of

suance

of

stock

for

resentation

in

local
of

a

-as

is¬

foreign sub¬

investors,

major

whether

the

may

determine

American

company

has developed a local
constituency
with a sufficient stake in the en¬

Inadequate Public

the

And

it

includes

the

extent of private
enterprise
cooperation with the U. S. Infor¬

mation Agency in helping improve
local • understandingof
overall
U. S. economic policies.

tions activities.

words, on matters ranging
from marketing to the public in¬
terest.
Such activities might in¬
clude
trade
exhibits,
industrial
safety programs,
scientific con¬
ferences,
technical
training
as

schools, and support of education
Should

Business

Necessarily

■

and culture.

Change Because of Public

pany,

Opinion?

ately

The

should

change their present poli¬
cies just because of public opinion.
There

are

siderations

sometimes

other

con¬

An oil

or

motor

com¬

for example, can appropri¬
promote projects for im¬

to

promote

and

company's interests.

defend

greater

All the

fears, jealousies and

plosive as U. S. business steps up
investment
and - operations
abroad, and as competition inten¬
sifies throughout world markets.
its

This combustible

mixture, further

inflamed by growing nationalistic
pressures in many countries, could

easily blow up-again in the face
of

American

business,

when there is need for

ment

ent

might
establish
experimental farms.
The ' basic
principle of all such activities is
company

re¬

sentments against American busi¬
ness will
become even more ex¬

proved roads and highway safety.
A chemical or agricultural imple¬

especially
a

conveni¬

scapegoat.

This
any

could happen in virtually
underdeveloped country if

that economic development is not

popular demand for economic bet¬

public interest; it is
company's long-range

terment is too long
frustrated, or
if the precarious economic balance
is upset

only
also

in
in

the
the

of equal
or
perhaps
importance to manage¬ economic interest.
ment
that
might well
militate
(4) Effective communications to
(2) Is the company making an against such policy
changes. Cer¬ the public. Company policies, in¬
adequate contribution to the host- tain highly-integrated interna¬ formation and activities ! can be
country's
aspirations?
This
in¬ tional
companies,
for
example, communicated effectively to ap¬
volves the company's contribution
might risk some los of managerial propriate audience groups through
to economic development
The
by- doing flexibility in pricing, scheduling defined channels.
general

terprise

rather than better, unless
they are clearly recognized and
intelligently treated.
worse

well

countries.

Relations?

economic is¬
Further shock therapy of the
company's
Castro variety many occur before
ability to operate efficiently.
American
businessmen are jolted
These can also be spelled out in
out
of their lethargy
and selfterms of particular legislative and
administrative matters, and spe¬ complacency about public opinion
abroad.
For the
public opinion
cific public attiudes toward the
company's operations and its con¬ problems confronting U. S. busi¬
ness
overseas
are
certain to get
tributions to the national welfare.
and

affect

other

foregoing policy considera¬
public interest on the subsidiary's
tions do not imply that American
board, and staffing its top man¬
companies necessarily should do
agement
with
nationals.
Such all
these things, or even that they
considerations

political

that

sues

bi-national councils in Mexico and

rep¬

sectors;'Of

major

(3) Development of public rela¬
Specific activities
can
be designed to advance the
company's objectives, by deeds as

enterprise?

,

involves such matters

sidiary

are

'

an

the

Then, How Does Top Management
Tackle the Public Opinion Job?

,

.

This

- *

'

These and

,

by sharp drops in com¬
modity export earnings. It might
also

happen

in

countries if there is

cession,
ment,

or

industrialized
a

substantial

or even

serious

re¬

unemploy¬

perhaps the eclipse

Volume

192

Number

5974

.

.

The Commercial and

.

Financial Chronicle

>

(477)

*

of

major domestic industry by

a

Survey Says Business Is Not Bad
Though It Could Look Better

American competitor.
7
Such explosions of public .re¬
sentment against U. S. business
an

could, in turn, force

even

the most

friendly governments to adopt dis¬

Most firms

criminatory

are

protectionist
measures.
And this might produce
a serious retrogression to
the in¬
ternational

and

.A#y

course,

"We

business' operations
abroad, and undermine its foreign

they

would seriously damage U. S. for¬

eign

policy and - the. free
alliance.
/
'

world

,

.

t

to give high priority to the
development of essential public
confidence and support for, .its op¬
overseas.

Doing so can yield substantial
results, because those American
companies with well-planned
public relations operations have
attained considerably greater pub¬
lic
understanding and apprecia¬
tion

than

overseas

business.

In

American
achieved

fact,

other

seen

a

good

standing

a

this

posture is likely to be¬
unless
more

companies follow suit
and
help
improve
the
overall
image of U, S. business abroad.
Thus, it is imperative for en¬
lightened: American management
overseas—not

to maximize the

itability of its

tions,

but

only

Council's

ness

by

Mr.

Business

Allen

before

Executives

training

in¬

"

Prices

However,

Tjaose saying prices

are

lower, 13%, are still 10

jittle shopping.
reporting higher inventories and those

inventories continues to widen.

This month, 33%

they are further reducing purchased materials inventories.
Only 15% tell ofwgreater inventories than in June. The bulk of
the comments, from Purchasing
Executives saying their inven¬
tories are the saffie, 52%, can be summarized by one who noted,
"We are holding the line at minimum levels." There is little en¬
thusiasm for an^f'desire To add to stocks on hand.
This in spite

conditions in several countries which

unsettled

are

the

Clyde

HOLLYWOOD, Calif.

E.

Tallman

is

Securities,

Riverside Drive.

He

—

10000

was

nett & Co.

Stone, Youngberg Adds

laid

(Special to The Financial Chronicle)

FRANCISCO, Calif.—Edwin

Berk

has

been

staff of Stone

added

to

•

the

&

Youngberg, Russ
Building, members of the Pacific
Coast Stock Exchange.

a

very

problems in

some

off.

,

--There

-

is

change again in July..
Buyers are finding, that
advantageous spot offerings are making it unwise to finp com¬
mitments very far ahead.
Lead time to manufacture or fabricate
is usually all that is being considered.
no

-Per Cent

Mouth

Production

WORCESTER, Mass. — John E.
Benglian is now with Hornblower

MRO

Materials___

Supplies

Capital

Weeks, 390 Main Street.

6 Mos.

30 Days

60 Days

90 Days

to 1 Yr.

-

-

7

39

38

14

2

28

45

21

5

7'b 1

9

8

12

26

45

Expenditures

June

MRO

(Special to The Financial Chronicle)

Materials

Supplies

—

Capital Expenditures™

LOUIS, Mo.—Walter H. Hallerberg is now connected with Stix

was

Co.

On
<

CLEVELAND, O.—Thomas F. Po¬
has been added to the staff

land
of

L.

A.

Building. :

Caunter
■




&

Co.,

Park

welcome

any

and all

matter—to
:

efforts of

the

U.

S.

the

up

side

are:

'

,v

"

.•

.

■

National Bureau Publishes
Book

on

Anticipations Data

usefulness in
How

well

businessmen, govern¬ solely on the situation at the mo¬
consumers anticipate ment of decision
plant, staff,
future, how they form their and inventory as they have de¬
expectations^ and how the fore¬ veloped through past transactions

In short

—

casters

can

dealt

are

use

with

these expectations

and

in

most

report issued

a

recently by the National Bureau

decisions

sales

rates.

But

in

it is appropriate to see

depending also on the
developments in
Long-range plans
must be made, and here anticipa¬

the volume

tions

Economic

prepared by par¬
conference
held

was

in

a

under the

auspices of the Univer¬
sities-National Bureau Committee

for Economic Research. The tenth

the

of

Bureau's

Special

Confer¬

as

future

expected

the

economy.

data

of

are

prime value.

Appraisals of Existing

Primary
surveys

of

conducted

Surveys

have been the

sources

investment

intentions

jointly by the Depart¬

ences

Series, the book is published
by Princeton University Press for

ment of Commerce and the

the National Bureau.

and of

Data

Useful

for

rities

and

Secu¬

Exchange Commission,

consumer

intentions carried

out under the auspices of the Fed¬

Forecasting

eral Reserve Board

by the Survey
University
of Michigan. Private surveys are
Research Center at the

a matter of specula¬
theorists, are now subject also conducted, such as the Mc¬
to measurement,
thanks to the Graw-Hill surveys of business'
rapid creation of an impressive plans for investment in new plants
body of statistics. "No student of and equipment. The contributors
anticipations can
afford to be to this volume appraise these and
years

scornful

ing,"
Hart

their

of

use

in forecast¬

Professor

states

Columbia

of

Chairman

of

Albert G.
University,

offered

by economic re¬

search to government and to

busi¬

ness."

not

only

—

indeed,

nor,

Hart. Most
used

in

variables.

of anticipations

use

promising use,"
are

their

evidence

most

according to Dr.

at their best when

with

combination

They

are a

on

statistics

new

are

who reports

provided

by

dn

F.

of
consumers' spending intentions of

reau,

member

National

the

other

basic source

how

firms

and

on

subscribers
Union.

sumers

survey

survey

to

the

Con¬

Cohen

Industrial

of

Confer¬

the

Board's

of capital appropriations.
J. O'Leary of the Life In¬

surance

Association

comments
ment

a

Morris

Board evaluates

ence

James

the

data

anticipations

the Conference's Thomas Juster of the National Bu¬

planning committee. Surveys have
proven
their reliability in pre¬
dicting major changes in certain
economic sectors, and "are widely
viewed as one of the most useful
services

other surveys.
In
addition,

on

of

America

the forward invest¬

commitments

of

life

insur¬

companies—their agreements
to make funds for mortgages and
ance

other

investments

available

at

specified dates. Papers by Robert
Ferber of the University of Illinois
and

Dr.

Hart

examine

in

detail

5

households

1

11

8

10

21

50

the
railroad
shippers' forecasts
growth.
To account for economic growth, and their significance to business.
The National Bureau of Eco¬
Dr. Hart adds, it is necessary to
develop and test theories about nomic Research is a private, non¬
the
way
experience shapes profit organization for scientific
people's view of the future, how study of economic facts bearing
this view shapes their decisions, on questions of public importance.
and
how
additional
experience

Sugar,

gasoline,

fuel oil

and

phthalic

down side

are:

cases

Research, Entitled
Quality and Economic Sig¬
nificance of Anticipations Data,"

of

"The

that

make

generate

decisions

the

economic

reshapes forecasts and plans. Such
are important also in ex¬

theories

recessionary tendencies
may
spread
through 7the

plaining

supply

current

15

are:'Scrap'iron, fasteners, warehouse steel
products, lumber, burlap, electrical motors and magnet wire.
y

and

10

'

zene.

■

forecasting.

18

anhydride.
On the

-

all others for that

and

bring the public interest into the fore-

ground.

•

—

37

sonal demands.

,,.

to

impact
give other

33

More price easing is reported this month.
Many suppliers
adjusting book prices downward to more nearly conform with
recent discounted offerings to buyers.
Some items, such as sugar
and gasoline, are up in price because of external factors or sea¬

L. A. Caunter Adds
(Special to The Financial ,Chronicle)

political fortunes

many

the

41

are

formerly with Metropoli¬

St. Louis

tan

in

10

Specific Commodity Changes

Co., 509 Olive Street, members
the Midwest Stock Exchange.

absorbed

30

ST.

of

We

of

Production

Now With Stix

&

own

afraid that

we are

much

"However, direct forecasting is

July

(Special to The Financial Chronicle)

He

too

matters due consideration.

Reporting—

Hand to

Hornblower & Weeks Adds

&

their

upon

deny it, but

are

tion by

Buying Policy

SAN

Few would

politicians

Economic expectations, for some

slight improvement in the general employ¬
are some significant unemploy¬
industries and in some areas. Further¬
more, the
number reporting employment as worse, 28%, still
exceeds those who report improvement, 18%. There is little hope
expressed for much change either, as many Purchasing Executives
tell of two- and three-week plant-wide vacations scheduled for
August, plus the usual slowdown in industry during the summer.
Another factor is the early model change-over inactivity of the
automobile business, when substantial numbers will be temporarily
ment

formerly
with Wilson & Bayley and Ben¬

M.

is

There

with

now

Inc.,

us

source

ment situation. "However, there

(Special to The Financial Chronicle)

Riverside

of

thirty

Joins Riverside Securities

v

always be borne in mind—

should also its effect upon the general welfare
all.

as

for purchased commodities.

staff.

upon

States must (or should)

ticipants

Employment

NORTH

policy

the

say

of

the firm's

certainly not a depressing situation, but it is obvious
'it jpould look a lot better.

The gap between those

Manning has also been

/,

the ultimate impact of all domestic
the international position of the United

course,

lished papers of recent conference dealing with such data and their

reporting lower

Co.

;:7>.-7

.

feel of the

Inventories

Street. He has recently been with
Eastman Dillon, Union Securities

to

Of

levels; encouragingly, 11% say they are producing in excess
output.
The remaining 5% are at less than 50%
production.

available with a

Tegeler & Co., 210 West Seventh

added

a

domestic
the United States .*

on

of their normal

sion.

LOS ANGELES, Calif.—Terry S.
Bayless has rejoined Dempsey-

J.

thought it might be well to get

we

percentage pointa-J away from the high of 1957-1958.
Summing it
up, prices are softer now than for many months and good buys are

the

(Special to The Financial Chronicle)

John

merce.

sup¬

Only 5% of bur committee reporters this month say they are
paying more now. than they did a month ago.
This is only one
percentage point away from the low point in the 1957-1958 reces¬

Rejoins Dempsey-Tegeler

&

for many

formulating

position be considered."

Chamber of Commerce

Commodity

understanding at the Ameri¬
University, Washington, D. C.

V,

commitments

in

"The combined
discouragements of governmental
regulations and tax policies do much to stifle newventure capital investment heeded
every year."-—
Policy Committee of the U. S. Chamber of Com-

ments,

Busi¬

for

program

down forward

Employment shows little change; but, such change as can be
is slightly encouraging.
Inventories are continuing to be

'

ternational
can

slowed

have

This is

indefinitely because it is ade¬
quately understood and broadly
supported.
address

Purchasing

says

that for many

ish

*An

doldrums,"

is

summer

that

trade and payments

away."

Summer

essential

normal

long-range prof¬

foreign opera¬
contribute to the

kind of expanding world economy
in which free enterprise can flour¬

International

of

is

policy the ultimate impact

Now that regular surveys are
being made on investment, consumer
and other intentions, National Bureau of Economic Research has
pub¬

of

own

to

"It

customary. En¬

A majority„J30%, say they are running between 75%
and
100% of their normal production; the next largest grouping, 24%,
find their present production rates between 50% and 75% of their

seriously its public opin¬

problems

is

productive capacity, our question was phrased to determine hqw
their present production rate compares with their normal, pro¬
ductive capacity.
i

American

ion

summer

relationship between so-called normal production levels and
present production rates. Assuming that every company has facil¬
ities for maximum productive capacity and normal (or designed)

precarious

to tackle

midst

the

This month

as

highly regarded domestic
companies in some countries. But
even

the

reduced—a bottom is not far away.

the most

come

in

duction schedules.

few of these
companies
have

as

the

S.

U.

disquietingly off compared to

more

letdown

a

pliers to this key industry. An abnormally low production sched¬
ule; for the steel manufacturers has resulted in short work hours
and reduced payrolls.
World uncertainties, an election year, and
indecision on the magnitude of our defense spending are contrib¬
uting to a watchful, waiting attitude.
This month, according to the National Association of Purchas¬
ing Agents' business survey committee, commodity prices are
again reported lower.
These lower prices and the ready avail¬
ability of almost all purchased materials continue to keep forward
commitments at the minimum commensurate with meeting pro¬

is for American busi¬

ness

erations

in

are

turers

The best insurance against such
occurrences

cost-increasing effects of price supports and
high taxes limit growth potential and affect com¬
petitive pricing in world markets.

also

traditional, and expected,., there 4are certain
other factors that are accentuating it this summer.
Business is
not bad, except in a few industries; but, it is not as good as it
should be either.
Production is off (better—22%; worse—30%;
same—48%) and new! orders are also off (better—24%; worse—
36%; same—40%) when compared to June.
*
• - ;
•
Anticipated early model changes by the automobile manufac¬
ing

of. American

Moreover,

when

They

Executives reporting for July. • While a letdown in industry dur¬

t

investments.

time

a

"not far

spoh, I yfhpy.es would,
of
jeopardize the profitability

•,

100% of their normal production.

couraging note is taken that the bottom of inventory reduction is

currencies, discriminatory taxes,
import and export quotas, compul¬
sory hiring of nationals, and even
outright expropriation.
.;

75% to

report production is somewhat
June—at

pattern of blocked

Worthy of Support!
"The

surveyed by purchasing agents' organization report they

within

25

l

.

Phthalic and maleic anhyrides and ben¬

that

The decisions that a firm makes

often thought of as

(Special to The Financial Chronicle)

BOSTON,

Mass 4 —John

III has joined

economy.

are

Joins Eastman Dillon

depending

Mclnnes

the staff of Eastman

Dillon, Union Securities & Co., 22

Batterymarch Street.

26

The Commercial and Financial Chronicle

(478)

Indications of Current
Business Activity
AMERICAN

AND

IRON

Indicated Steel operations

(per cent capacity)

statistical tabulations

latest week

month available.

week
Latest

Previous

Week

Week

INSTITUTE:

STEEL

The following

Aug.

6

§55.1

Steel

ingots

Crude
42

and castings (net tons)
INSTITUTE:

Aug.

6

§1,570,000

Month

Ago
42.2

*53.3

condensate

and

(bbls.

average

July
July
July
—July
July
July

gallons each)

stills—daily average (bbls.)

to

runs

output (bbls.)
Kerosene output (bbls.)
Distillate fuel oil output
Residual

oil

fuel

(bbls.)

Finished and unfinished gasoline
•Kerosene

(bbls.)

Distillate

fuel

Residual

oil

ASSOCIATION

(bbls.)

12,381,000

CIVIL

Ago

6,831,910
8,257,000

6,819,860

6,855,125

8.231.000

7,952,000

30,031.000

29,055,000

28,750,000

2,469,000'12,972,000

•2,223,000

2,056,000

12,688,000

11,802,000

AMERICAN TRUCKING ASSOCIATION, INC.—
Month of May:

Intercity

197,241,000

203,242,000

29,157,000

27,583,000

28,964,000

123,920 000

121,427,000

106,fa87,000

134,463,000

22

43,488,000

43,013,000

40,592,000

54,789,000

July 23

619,784

"607,081

641,628

536,395

(no. of cars)—July 23

479,086

438,265

535,778

479,953

RAILROADS:

CONSTRUCTION

freight

INC.—217

U.

construction

S.

Private

construction..

—

State

and

$30,690,427
168,151,316

Atlantic

East

53,577,639

Central

South

1;

114,685,308

Central

OUTPUT

BUREAU

S.

(U.

York

:

INC.—Month

July 28

19,000,000

17,900,000

152,200,000

51,100,000

——July 23
July 23

7,945.000

*7,345,000

9,070,000

7,353.000

388,000

340,000

442,000

379,000

CASH

New

York

City

INCORPORATIONS

S.

(COMMERCIAL

121

*119

124

117

—.July 30

14,746,000

14,425,000

14,247,000

13,775,000

(000's
CIVIL

INDUSTRIAL)

AND

DUN

—

July

IRON

COMPOSITE

AGE

——July 26
July 26
July 26

6.196c

6.196c

6.196c

Finished

steel

(per

Pig iron

(per

gross

Scrap

steel

METAL

(per

PRICES

lb.)

.

1

ton)
ton).;

M.

&

$66.41

$66.41

$66.41

$66.41

$31.50

$31.50

$31.00

$39.50

252

-

6.196c

COKE

(New York)

Lead

(St.

tZinc
Zinc

U.

S.

—

—

DAILY

Oven

Group

12.000c
11.800c

In

consuming establishments

11.500c

In

public storage as of July 2

Government

Average

Bonds

corporate

11.000c

Linters—Consumed

26.000c

26.000c

26.000c

24.700c

Stocks—July

July 27

104.750c

104.250c

101.875c

101.875c

13.000c

13.000c

13.000c

Cotton

COTTON
86.61

83.56

UCTS—DEPT.

86.11

85.07

86.11

June:

Aug.

2

91.05

90.34

89.64

89.78

2

88.81

88.27

87.59

87.72

Received

35.98

85.72

84.81

85.72

Crushed

Aug.

80.45

80.45

78.90

81.42

Stocks

Aug.

84.04

82.90

Aug.

2

87.05

86.51

85.46

85.20

Stocks

2

88.27

87.22

86.91

88.13

Produced

-B

.

Cake

Baa
...

Utilities

Group
Industrials Group
MOODY'S

COMMODITY

NATIONAL

Orders

Production

Unfilled

OIL,

of

PAINT

ROUND-LOT

4.68

3.38

4.13

4.70

.i-f-tV-V.-'' 4.78

4.70

,

2

4.34

4.39

4,44

4.43

Aug.

2

4.50

4.54

4.59

4.58

4.73

4.71

Aug.-

2

Aug.

2

Aug.

2

4.86

4.86

4.95

4.79

Aug.

2

4.63

4.67

4.75

4.77

Aug.

2

4.54

4.58

4.64

Aug.

2

370.4

370.8

378.5

4.80

5.15

5.15

5.28
...

.

;

4.55

316.273

272.867

314,504

281,445

310,052

248,079

323,223

312,860

.

DRUG

end

of

July 23

91

74

94

94

July 23

464,279

474,165

435,798

533,760

July 29

109.55

109.47

110.33

109.36

period

REPORTER

PRICE

ACCOUNT

FOR

in stocks in

OF

Other

July

1,890,930

2,370,480

2,875,840

3,040,660

July

356.720

489,860

570,430

484,130

the

July-

1,450,800

1,878,060

2,420,740

2,538,550

July

1,807,520

2,367,920

2,991,170

3,022,680

July

278,700

319,830

466,660

499.530

July

26,800

38,100

63,500

45,100

July

223,960

302,200

393,580

468,710

.July

250,760

340,300

457,080

513,810

floor—

sales

sales

transactions initiated

on

floor—

the

purchases

JulyJuly
July-

:

Short sales

Other sales

L

Total

Total

sales

.-

...

for account

Other
Total

923,955

1.41,970

179,820

873,855

895,970

680,215

695,319

1,015,825

1,075,790

2,709,150

3,324,439

4,204,476

4,464,145

July

468,800

603,315

775,900

709,050

...July

2,269,695

2,799.724

3,688,175

3,903,230

July

2,738,495

3,403,539

4,464,075

4,612,280

sales

DEALERS

EXCHANGE

—

AND

Dollar

SPECIALISTS

SECURITIES

.

EXCHANGE

(customers'
;

N.

Y.

Nuit)ber of

orders—Customers'
short

sales..

Customers'

other

sales

Dollar

value

of

Short

sales

Other

2,186,078

$115,413,588

1,328,035

1,596,200

1,805,585

1,941,000

.July

5,358

5,507

6,588

7,016

sales

purchases by dealers—Number of shares
AND

ACCOUNT

SALES

ROUND-LOT

OF

ON

THE

STOCK

MEMBERS

N.

Y.

sales

Other

sales

Total

LABOR

—

U.

All

products

OF

as

i

r..^

.

_

.

other

of Jan.

1,

cent

1960 as
a

pound.




35,500

43,900

June

30

30

June

___

than

farm

and

foods

tPrirne Western Zinc sold

on

55,100
63,900

■

39,800

57,300

28,600

48,200

61,600

48,100

113,400

.132,000

160,700

52,300

.73,100

38,100-

70,000

97,600

89,300

20,004,000

(DEPT. OF COMMERCE):

in place on July
active on July 2

AND

2

19,694,000

20,317,000

17,604,000

17,589,000

17,598,000

2

10,737,000

8,964,000

10,392,000

for spindles in place June

429.5

448.2

415.7

12,282,000

*12,330,000

12,299,000

7,061,000

*7,114,000

7,139,000

5,221,000

5,216,000

5,160,000

101.0

*100.8

100.9

171.7

*168.8

169.6

16,329,000

*16,375,000

16,187,000

9,488,000

*'9,541,000

9,443,000

6,841,000

*6,334,000

6,744,000'

$270,200,000

$327,500,000

$241,300,000

56,900,000

63,500,000

48,700.000

9,800,000

11,100,000

59,300,000

58,600,000

52,900,000

132,500,000

155,900,000

119,200,000

121,400,000

153,600,000

109,800,000

$650,100,000

$770,200,000

$582,000,000

$31,600,000

$31,600,000

$31,300,000

$3,188,000

$3,151,000

$3,546,000

omitted)

(000's

PAYROLLS—U.

REVISED

manufacturing

.Durable

July

DEPT.

S.

SERIES—Month

(production

of

workers)

^

goods

Employment

goods

indexes

(1947-19

Avge.=100)—

manufacturing

Payroll
All

___■'

(1947-49

indexes

!

Average=100)—

manufacturing

.

Estimated

number of employees in manufac¬
turing industries—
All
manufacturing
;—

Durable

goods

Nondurable
LIFE

—

---

goods

—

BENEFIT

INSURANCE

POLICYHOLDERS

Death

of

TO

LIFE

OF

April:

.___

endowments

Disability payments
Annuity payments

Policy

PAYMENTS

INSTITUTE

—

benefits

Matured

___■

values

dividends

of

April

YORK
of

STOCK

June

Member

10,100,000

extended
on

Total

cf

hand
value

of

value

of

434,340

510,230

479,410

July

39l"470

484~340

510~230

479*410

July

486,940

540,730

619,350

741,420

listed

borrowings

Member

borrowings

RECEIVED

NUMBER —U.
TURE
All

—

farm

on

on

BY
S.

—

U.

S.

balances..;

bonds

shares

U.

S.

Govt.

OF

100—As

Issues

collateral

other

FARMERS

DEPT.

1910-1914

in

credit

free

listed

Member

PRICES

banks

in

customers'

Market

accounts—

balances

customers

and

Market

debit

net
to

1,933,984

331,470

.■

___.

omitted):

carrying margin

customers'

Cash

omitted)

EXCHANGE—

(000's

30

firms

Total

(000'S

30

$98,406,933

July

8

July

July

525,270

704,660

877,660

8

11,703,490

14,639,990

8

12,228,760

15,394,650

Feed,

17,262,740

821,780
18,780,210

Food

18,140,400

19,601,990

Fruit

—

July 26
July 26

119.4
88.0

*89.0

87.7

87.5

.July 26

107.5

108.0

107.5

106.7

July 26
July 26

96.4

97.4

96.4

97.1

128.3

128.3

128.3

128.2

119.6

119.4

deliv ered basis at centers where
freight from East St.

;

•

•••

-

-

May

1,094.000

109,394,776

105,872,000

293,142,880

291,687,902

298,785,388

595

*622

473,000

*2,274

2,350,000

..

frcsh___
.—_—_—.__—

hay____

and

158,000

15:

.

i

crops
—.—;

—_______

Dairy products

242

244

228

225

228

283

255

237

248

244

158

272

158

163

209

209

205

216'

211

221

.

218

216

245

257

494

494

252

257

230

•

.

•

202
508
258

237

244

animals

310

310

338

and

153

163

125

253

250

240

$1,791,600
1,259,500

$1,822,900

$1,550,700

1,257,400

1,263,800

Poultry

STATES

BUREAU

(000's

970,000

AGRICUL¬
of

119.2

Louis exceeds

363,000

1,017,000
106,876,435

2,285

-

Meat

130,000
362,000

241

vegetabfes,

grains
grains

106,000

'366,000

INDEX

products

Oil-bearing

^Includes 1,132,000 barrels of foreign crude runs. §Based on new annual
capacity of 148,570,970 tons
against Jan. 1, 1959 basis of 147,633,670 tons.
tNumber of orders not reported since introduction of

Monthly Investment Plan.
one-half

55,100

116,900

hours

LABOR

UNITED

figure.

153,700

116.900

83,000

1,798,997

OF

—i

•Revised

204,500

83,000

Potatoes

foods

commodities

202,800

Tobacco

Meats

All

30

$88,290,519

(1947-49=100):

commodities

Farm

of

June

1,500,693

Commodity Group—

Processed

spindle

Commercial

DEPT.

626.957

17,598,000

PROD¬

TRANSACTIONS

S.

114,419

577,539

17,589,000

13,500

$72,995,622

STOCK

.....

SERIES

SEED

105,735

500,216

17,604,000

130,000

Cotton

PRICES, NEW

—

2

116,600

1,322,677

(SHARES):

sales

WHOLESALE

1,303,345
7,979,233

126,132

.

823,380

1,825,930
7,697,638

13,700

$61,799,383

round-lot sales-

Short

710,302

1,600,811

6,681,094

357,300

July

July

...

sales

STOCK

3,049,439

252,400

July

July

ROUND-LOT

EXCHANGE

1.908,875
$98,330,496

July-

sales

Round-lot

1,706,392
$83,373,587

by dealers—

shares—Total

3,733,199

10.400

spindles

Credit

...

sales

Number

1,367,483
$67,487,754

sales)—

.

3,891,831

(bales)

EMPLOYMENT

As

July

total

5,945,500
120,300

191,100

Active spindle hrs.

NEW

COMMISSION

July

Customers'

Round-lot

Spinning

As

purchases)—t

by dealers (customers'

6,065,800

78,941

MONEY IN CIRCULATION—TREASURY DEPT.

STOCK

value

Odd-lot purchases

FOR

ON

5,350,095
5,271,154

(bales)

Surrender

July
;

Odd-lot sales by dealers
Number of shares

Total

361,976

75,855
619.464

members—

sales

4,602,310

4,542,560
59,750

(tors)

INSURANCE—Month

634,129

85,280

594,935

TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

LOT

TOTAL

of

purchases

Short sales

STOCK

539,520

July

round-lot transactions

Total

335,000

176,600

COTTON SPINNING

All

:

initiated off

purchases

Total

382,000

30

(bales)

Produced

.:,v

sales.

Other

983,000

193,000

(bales)

Nondurable

Short sales

Total

896,000

(tons)

Shipped

MEM¬

which registered—

sales—_—

Total

1,318,000

731,000

May:

sales

transactions

(tons)

Stocks

All

purchases

Total

Other

1,164,000

1,278,000

(tons)

Produced

INDEX—
1

TRANSACTIONS

Other

$2,482,000

1,607,000

924,000

(tons)

Shipped

Active

July 23

Transactions of specialists
Short

$2,885,000

1,081,000

Linters—

381.8

July 23
at

(tons)

Stocks

5.07

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Total

$2,005,000

Hulls-

4.73

i

(tons)

AND

$1,867,500

June

Spinning spindles

AVERAGE=100

1949

2

3.74

ASSOCIATION:

activity

orders

Aug.

3.65
'

(tons)

(tons)

Percentage

2

Aug.

INDEX

PAPERBOARD

received

$355,000

Meal—

and

Shipped
Aug.

mills

at

1

84.94

June

July

(tons)

___—

—

Group

$1,948,300

857,772
2

COMMERCE—Month

OF

(tons)

2
2

.

Public

16,208

Seed—

Aug.

84.04

cf

of

as

COTTON

AND

87.94

86.38

Aa

Railroad

SEED

88.79

2

Aaa

•

15,530

OF

July

of

as

Xs

2

tons)

.

month

active

Aug.

Cotton

June

2

spindles

Aug.

,—L

A

of

month

July 27

!

U. S.

16,676

BALES:

13.500C

Consumed

(net

DEPARTMENT

13.500c

31.300c

AVERAGES:

DAILY

of month

—

13.500c

Aug.

YIELD

BOND

end

at

LINTERS

AND

COMMERCE—RUNNING

July 27

.—;

—

COTTON

tons)

27.200c

Industrials Group
MOODY'S

29.550c

AVERAGES:

Group

Utilities

32.600c

32.600c

tons)

(net

12.000c

•

Public

85,266,220

$587,079,331. $612,984,732

June:

_L_

tons)

(net

coke

11.800c

Bonds

___

(net

coke

30.775c

.

Baa"

(BUREAU OF MINES)—Month of

12.000c

—

Railroad

$693,250,952
<

of

municipal

11.800c

30.875c

July 27

99.5%) at

PRICES

Aa

and.

12.000c

corporate

Aaa

82,781,385

EN¬

—

;

11.800c

at

(primary pig.

BOND

•

OF

Month

—

construction

July 27

at

Government

Average

CONSTRUCTION

—..July 27

at

Straits tin (New York) at

MOODY'S

$669,860,766

33,508 094

148,271,580

June

NEWS-RECORD

Oven coke stock
32.600C

July 27
July 27

Louis)

(East St.

Aluminum

of

DEPT.

S.

construction

S.

Beehive

at

Louis) at—

(delivered)

$696,991,281

•

construction

Production

QUOTATIONS):

J.

Export refinery at
Lead

94,254,005
52,384,764

30 999,176 -V

THE

Federal

Electrolytic copper—
Domestic refinery

99,401,141
35,507,015

PRICES:

gross

(E.

v;

'

(000'g omitted):
U.

State

278

259

293

•

64,230,417
130,838,273

BRADSTREET,

omitted)

Private

&

July 28

(NEW) IN

&

140,681,398

62,786,697

124,765,963

$566,847,531

June

ENGINEERING

Total

INC

BRADSTREET,

of

CORPORATIONS—U.

Public
FAILURES

STATES—DUN

GINEERING

July 23

$34,082,421

118,206,939

DIVIDENDS—PUBLICLY REPORTED BY

U.

RESERVE

(in 000 kwh.)

output

UNITED

INSTITUTE:

ELECTRIC

Electric

140,900,000
139,500,000

SYSTEM—1947-49 AVERAGE=100

RDISON

$331,500,000

235,900,000

$25,014,047

139,689,162

—130,143,750

outside

298,300,000

132,100,COO

—I—

-

City

COMMERCE—Month

INDEX—FEDERAL

SALES

STORE

BUSINESS

;

36,382,736

.-

Total United States

MINES):

OF

(tons)

Pennsylvania anthracite (tons)
DEPARTMENT

Ju}y 28

151,100,000

6,537,934

173,179,788

40,872,229

Mountain

New

>

107,942,464

Central

West

$686,400,000
.

190,600,000

municipal—

Bituminous coal and lignite

310,500,000

388,100,000

Federal

COAL

$519,800,000

214,400,000

209,300,000
191,400,000

construction

Public

S365.500.000

6,318,250

.

&

Atlantic

South

Total

July 28
July 28
July 28

416

DUN

—

CITIES—Month

NEWS-RECORD:

Total

by

6,421,540
VALUATION

England,,

Middle

188,157,000

transport

tons)

June:

of
New

ENGINEERING

—

(in

PERMIT

BRADSTREET,

r

'

(number of cars)

freight received from connections

ENGINEERING

general

BUILDING

6,313,000

6,106,000

29,533,000

,

Revenue freight loaded

'■<

of that date:
Year

134,779,000

at

AMERICAN

OF

2,759,000

are as

Month

22
22
22

July
July
July
July

at——

(bbls.)

29,116,000

of quotations,

cases

Month

11.2

lines—

(bbls.) at

at

oil

fuel

6,855.010
118,204.000

in

or,

Ago

5,800,000

Stocks at refineries, bulk terminals, in transit, in pipe

Revenue

that date,

either for the

are

Previous

5.700,000

(bbls.)

output

22
22
22
22
22
22

production and other figures for the

cover

Latest

318,000

of

Thursday, August 4, 1960

.

Year

1,203,000

*1,520,000

.

Dates shown in first column

carriers

output—daily

Gasoline

,

on

PETROLEUM

oil

Crude

month ended

or

Equivalent to—
AMERICAN

or

.

OF

eggs__—

EXPORTS

CENSUS

—

AND

•

233

IMPORTS

Month

of

May

omitted):

Volume

192

*

Number

5974

,

The Commercial and Financial Chronicle

.

Federally Chartered Mutual Banks

tensive research into the structure,

functions, and operations of mutuai savings banks, had consulted
widely with savings banks through

Called for in Bi-Partisan Bill
Mutual

their

savings banks have climbed the first rung in their efforts
expand and compete with other savings institutions by the intro¬

to

duction, into both houses of

Congress of

had

the

National

Association

are

The

ings

the

bill,

that

he

Senator Bush

and

did

so

by request to provide Opportunity
for study and evaluation of the
proposals.
-

mutual

sav¬

Policy

be

provided

the

laration

also

for

the

record

basis.

is

It

important to

remem¬

ber," he added, "that although the
greatest investment function of
the proposed Federally chartered
savings banks would be in mort¬
gages, the diversified investment
powers authorized for the banks
would make it possible for them
to

of

standards

the

maintain

quidity

li¬

been tradi¬
with the mu¬

which

have

tionally associated
tual savings bank system."
Mr.

said

also

Clark

the

legislation would strengthen the
dual
banking system. "Savings
banks alone," he declared, "exist
as
state institutions exclusively,
commercial

while

banks, savings
and loan associations, and credit
unions are chartered by both the
states

and

Federal:

the

ment. This dual

has

chartering system

contributed

significantly

the vitality of our

tutions.

ital

be

to

to

tion

of

unwarranted

seems

cially

since

both

espe¬

-—

population and

personal income are rising rapidly
in

non-savings bank states, and
housing
and
home
ownership
needs are greater than ever be¬
fore."

Mr.

Clark

pointed

out, in this

regard, that the National Associ¬
ation's efforts in the Federal area

supplemented
in the

area

comparable

efforts

of state-chartering and

that efforts in the state

area

would

continue.

tion's

now

22
.

v.

exist in

million

more

than

17 states, serve over

savings accounts, have
$35 billion, oa^deposit,

and. hold $25

billion in mortgage




na-

economy."

Offovorl

A

xxJLt/

on

debentures,
101.307%

cap¬

provision for reserves for
protection of depositors and pay¬

fund

pense

and

costs

initial

for

a

elect

due

4.55%.

award

of

The

the

petitive sale
of

Aug.

1995

1,

and accrued

yield

debentures

Aug. 2

on

at

interest, to

group

won

at

com-

on

bid

a

100.51%.

will

for

invest

plant,

for

balance

which

of

repayment

will

proceeds

general

corporate

be

pur-

?"/'

Thp

debentures

1995

redeemable

in

Commission

Bank

the

the parent

the

of

for

poses.

to

arP

he

oXnal redemp!

at

tion prices
to

ranging from 106.807%
plus accrued interest.

par,
The

^d

furnishes

comDanv

munication

•>.'

would

erations

of

mission

would

banks.

the

be

and

The

services

toll telephone

Louis.

op¬

billion.

And for

four-year period through 1963,

a

wil1 invest $8.4 billion in new facilities, 26.6%
billion expended for 1956-59.
Sources

in

of

ct

and

31

national

16%

trade

from

common

Transmission

The

of

providing for the

institutions,
would
authorize

to

the

and

preferred stocks.

legislation

line

into

other

For

in¬

total

in

any

funds

from

share

accounts. The

savers

branch

of

for

for

use,

radio

and

and

and Pipeline Construction Expenditures by
Type of Gas and by Type of Facility, 1959-1963
•

forecast

31
01,

three
1960
iyuu,

months

the
uie

revenues

March

At

31,

loan

associations

savings
the System.

1

and

banks

a

re¬

qualify

The

annual
banks
fdic.
The

examination
—

of

teenth

National

Association

also

263

$2,3,0^

**,188

36,415

655

737

1 001

3 455

2 858

79

87

131

100

148

'466

'271

7l\

6M

7H
88

2,797

2,102

348

293

$51

$53

$80

$259

$255

$54

$72

336

21235

Transmission

Underground

1,122

43

44

58

63

208

3

3

2

3

3

11

$1,728

$2,233

$1,918

$1,916

$2,380

227

267

268

271

694

1,063

657

740

1,006

$8,447
1,151
3,466

87

131

100

148

643

724

765

726

790

85

92

97

79

91

Storage

79

Distribution

General

345

891

2s

n

43

was

209
15

>

$6,670
914
2,866

466

/
J

271

3 005

2 311

359

308

—

A cf-pAfliAT'yyi
xi-OLI ULIlt/I 111 OtJCb.
A

rll

UlICT^Q

O

\

rt

o

r-

11

Uarrett-Dromrield

Street,

&

Co., 650 Sevenof

members

the

.

group

&

Co.,
Globus, Inc., and Harold C.
Shore & Co., all of New York City,
publicly offered securities of this
Indianapolis, Ind., firm.
The offering consisted of $308,000 8% subordinated convertible
debentures, due July 1970, 154,000
Inc.,

shares

of

common

stock,

DENVER,
vich

has

Colo.—Joseph

Maleso-

become, associated

with

Ladet and Co., Inc., Central Bank

Building. He

was formerly local
for Andersen, Randolph
Co., Inc.
•
-; -

:

manager

r

&

Torao Mnri flnem

lorao IVlori LFpens

(Special to The Financial Chronicle)

GARDENA, Calif.—Torao Mori is
conducting a securities business
from offices at 1102 West Fifteenth Street. Mr. Mori was formerly a partner of Taiyo Securities Company.

and

With Kaufmann, Alsberg

(special to the financial Chronicle)

-

of loans from stockholders and management officials,
for additional laboratory equipment, and for working capital.

o

consisting of Ross, Lyon

With Ladet & Co.

by the

-.V.

262

Distribution

^

rett-Bromfield

Com¬

member

the examination

261

'••••

Industry-Total
Production and Storage

,

was

Colo.—Chester B. Lippitt has joined the staff of Gar-

insured

an

as

under the FDIC.

1956-1959

capital

1960,

Midwest Stock Exchange.

proposed legislation would be

1962

1,062

General

of $190,-

DENVER,

to
the

to

Pfntpr'b,utl0n

1961

092

Storage......

All other Types of Gas-Total...

had
iidu

(Special to the financial chronicle)

few

belong

i960

224

On Aug. 3 an underwriting

n

•

JOHIS

sec¬

chartered under

Each bank

bank

Production and Storage

Transmission

ended

$10,000,000.

membership would not be
re¬
quired. At present, most savings
mutual

Actoal

1960-1963

s

1959

NV„'0

tele-

comnanv
Lumpcuiy

Total

1963

Ar-^i

Facility

Underground

i

(jn millions)

V.

Type of Gas and

other

for

capital stock
equity was $871,516,595; funded
debt, $175,000,000, and advances,

ondary source of liquidity, though

and

million

Gas Utility

the

000. At Dec. 31, 1954,

permitted to join the Fed¬
Home Loan Bank System, in
a

$160

were

The investor-owned gas industry registered significant growth

and

and advances from
the parent organization, $60,500,-

banks would

order to avail themselves of

the

duri"g I959 in tot^> utility plant, up to $19.2 billion, and total
assets wh/h cI'mbed to $22.85 billion. At the end of 1958 the
gorr^P°nd'ng figures were $17.47 billion and $20.73 billion.

private

also be
eral

including

mid-summer,

$275,000,000

accepting
deposit or

on

;.

more than the $270 million spent in 1956-59.

tele-

equity of the company
$1,461,420,101;
funded
debt

state would be tied

institution

'

^

Pifv

stock

to the most favored state-chartered

financial

con-

.

of

areas

service

facilities

operating

623.

Loan Bank System

legislation,

may

security market

tbis year is put at $724 million, up 12.6% over last year's record
$643 million. - The' outlook for 1963 is $790 million, for a fouryear total of $3 billion and a 30% climb over the 1956-59 total
°* $2-3 billion.
/
;
Another $354 million is being expended this year for production and storage facilities, compared with $306 last year. Approximately $87 million of this will go for underground storage to help
meet peak demands in cold weather.
The growing importance
of underground storage is reflected in forecasts that $466 will
in «?e ~3 *eH°d.
73%

576,289 and net .income Of $32,472,-

the

debentures,

These proportions

upon

/

$694 milBon. For four years through 1959, pipeline expenditures totaled
$2-9 billion. They will climb nearly 21% in the next four-year

Total

the

March

Would Allow Access to Home

powers

and

programs

lvidiLii

stitutions.

Under

says

raised

systems,

outlays last year,
Texas-Florida pipeline completed in

purposes.

sav¬

thrift

be

nation's

Transmission

35%

include

teletypewriter

vision

mutual savings banks and for the

banks

about

exchange

transmission

voluntary
conversion
of
other
thrift
institutions
into
Federal
conversion of Federal mutual

sources,

will
and

million Texas-California link.

the

TCancac

furnished

services

the
the

new

remainder

carrying natural gas from production
distributing companies, will spend more
than a billion dollars for new facilities this
year.
Major projects
scheduled for completion in 1960, as the billion-dollar level is
topped for the first time in the pipeline industry, include a $169
sources

Houston, Jvansas city
Other communication

typewriter

creation

ings

TTrmctnn

Dallas.

services

Senate.
In addition to

internal

come from

association.

ditions.

local

I960

in the metropolitan

L.OU1S,

and

the

of

consent

;

gas industry obtain the billions of dollars
improvement and enlargement of facilities?
An esti-

change, A.G.A. points out, depending

com-

mainly

which

Of

t

bt.

terms by the President with
advice

'

than the $6.7

,

through the sales of securities—45% from bonds

had 6,061,847 telephones

service,

were

three members appointed for sixyear

gas companies

more

Where will the
needed for

service, in Ar-

March

On

company

Com¬

composed

year expenditures approached

' ' The new record probably will not stand beyond 1963, the
American Gas Association says in summarizing an annual study
prepared by its fact-finding arm, the A.G.A. Bureau of Statistics,
Expansion activities three years hence will probably reach $2.38

.

supervise the chartering

/

utility and

gas

PiPeline companies is shaping up,, with a record-breaking $2,233
billion beinS sPent in 1960 for new Plant and facilities.
....
'
The $23 billion 8as industry, currently serving 32^ million
utmty customers and adding about a million more each year, will
top its Previous record construction year by 26%. Up to now, the

kansas, Kansas, Missouri, Oklahoma, Texas and a small portion
of Illinois in the vicinity of St.

cre¬

Federal Mutual Savings

a

and

used

the insuring agency for the banks.

ation of

financing

by

organization,
American
Telephone
& ;
Telegraph Co., which are expected
to
approximate $85,000,000. The

the

legislation calls for the

used

its

mortgages, espe¬
cially home mortgages, govern¬
ment obligations, state and local
obligations, and corporate secur¬
ities. The Federal Deposit Insur¬
ance
Corporation would serve as
The

be

reimburse

advances from

protection of deposits would be
required before the bank could
begin operation. The bank could
accept any savings deposit, pay
interest
to
depositors from net
earnings and undivided profits,
and

fl„am!i„g needs,

,

the company to
treasury
for experiod, to $3.5 billion.
penditures made for extensions;1Asffov-distribution facilities to link more domestic, commeradditions and improvements to its
°iai and industrial customers with natural gas service, construction

operating

fund

reserve

Net proceeds from the

board

a

facilities,

new

biSgest construction push in the history of

the

ment of

would

<

.

mated 39% of the funds will

Bell Telephone Co. 35-year 4%%

In his statement,: Mr/Clark re- mission would be permitted to ac¬
ported that mutual -savings -banks cept — in lieu of its required

-

continued

to

SnntVlWPQfpm
Rpll
KJKJU. til VV C/OlA/l 11 XJv/ll

savings banks. They

charter and

y;

Financing

stock, and all their earnings,

quired
Mortgage Funds Flow

essential

are

noninflationary growth of the

after

deny the

savings banks to in¬
dividuals in two-thirds of the na¬

facilities

which

.

organized without

$8.4 billion in

record Proportions with total construction of $1,728 billion,

higher levels of personal savings

institutions would be similar
mutual

1963

peak was $L772 bimon in 1957. Last

growth with relative price
stability.
A
nation-wide
thrift
system must surely result in the

to that of the present state-chart¬

ered

until

The four year

eco-

Halsey,
Stuart
&
Co.,
Inc.
is
provisions of the bill, manager of an underwriting synthe
organization, structure, and dicate which offered on Aug. 3 an
function of the Federally chart¬
issue of $100,000,000 Southwestern

would

years

sav

deposits."

financial insti¬

continue

To

Govern¬

rec-

Under the

ered

,or 61% 0, its

.

of

posits, and reasonable returns

the

that

savings

reflects

nomic

savings banks over nearly
century and a half of providing
safety, ready availability of de¬

of trustees to manage and control
the affairs of the bank. An ex¬

extension
of the savings bank system, wel¬
comed the legislation. He said that
the legislation,
by providing "a
unique system of banks dedicated
to encouraging the thrift of sav¬
ings depositors and to returning
to them all earnings derived from
their deposits, after setting aside
necessary reserves for their pro¬
tection/would advance the cause
of personal thrift on a national

the

of

and

IngstoWSSSiS goaTof

"mutual

;>

safetv

svstem

of the imnortanre of nersonal

within

a

these

of

oenition bv Federal Dolicv makers

sav¬

Clark, president of the National
Association, said that the Associ¬
ation, which has always had as
of its purposes the

ditions

dual

noted

industry is forecast for

gas

see

j

compared to $6.7 billion in 1956-59 period, and may tap the market

of

president

vice

savfnes banks "establishes
insistent with the tra-

bankinc

of

Commenting on the introduc¬
tion of the legislation, Edward P.

one

executive

standards

exist.

operating expenses, would
be distributed to depositors. In¬
dividuals
acting
as
corporators
would
apply
for
the
Federal

-

ley,

tional

banking sys¬
tem," and that these objectives
"will be advanced by authorizing
the
establishment
of
privately
managed
Federally
supervised
mutual savings banks." The Dec¬

J. Mul-

Y;). On introducing
Senator Sparkman said

which

period through 1963 will probably

i

t

( when larger investing than ever before is anticipated.

Tbe

institutional frame¬
competitive economy

our

within

and

(D.-N. Y.), Representative Al¬

(R.-N.

private

work of

John J. Sparkman (D.-Ala.), Sen¬
ator
Prescott
Bush
(R.-Conn.),

pern

"should

the

bill/entitled "Federal Mu¬
Savings Bank Act," was in¬
troduced shnultaneously; in both
houses of the Congress under the
bi-partisan sponsorship of Senator

(D.-Ala.)/ Representa(D.-Pa.),
Representative James A. - Burke
(D.-Mass.), Representative Daniel
K. Inouye (D.-Hawaii), Represen¬
tative Paul .A. Fino
(R.-N. Y.),
and Representative Seymour Hal-

in

now

Declaration

the bill states that increased

The

William A. Barrett

those

ings banks

tual

tive

banking. Dr. Grover W. Ens-

r\

Gas Industry
u

I960 followed by decline in the succeeding two

and

ings

l*

ior

*

Mr. Clark reported,
properties in states other

on

than

family in the nation and provide
ing an increased flow of real sav¬
ings to finance housing and other
capital formation on a sustainable,
noninflationary basis. ^
F.

bert Rains

legislators,

l

i

Record high capital spending by the

forts to promote extension of sav-

loans,

gage

Of

thrift facilities of savings banking
available to every individual and

ter

officials,

•

Projected
°

had

mostly on homes. An es¬
timated $5 billion of these mort¬

Mutual Savings Banks as a signif¬
icant step forward in making the

Representative Abraham

and

-p*

meetings with Fed-

loans,

calling for Federal chartering of
mutual savings banks was hailed
by

associations,

27

Record High Capital Spending

others in the thrift field in its ef-

chartering of such thrift banks. The bill would allow them to join the
Federal Loan Bank System to obtain a
secondary source of liquidity.
Recent introduction of legislation

state

numerous

eral

bill providing for Federal

a

(479)

made at $200 for a

unit consisting

of $100 of debentures, 50 common

shares,, and 15 warrants exercisable initially at $2 per share. The
proceeds were to be used for the
repayment of loans from Mercantile Business/Discount Corp., the

Kaufman, Alsberg Si Co., 61
Broadway, New York City, mem-

bers of the New York Stock Exchange, have announced that Miss
Elsie Rubin and Jerrold A. Wexler
have joined the firm as registered

representatives.

v

-

28

The Commercial and Financial Chronicle
i'v.

(480)

Thursday, August 4, 1960

.

* INDICATES

Now

Securities

in

ISSUE

NEW
NOTE—•Because

the

of

large number of issues
awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
in the index and in the accompanying detailed

Arco

not,

are

w

'

& Co.,

Inc.)

Gray

Co.)

Inc.—Common

$126,600

*

Common

(Darius

/

Inc.)

$150,000

.

v

■

Powertron Ultrasonics, Inc.—.

(California

Industries, Inc.

(letter of notification) 150,000 shares of(par 10 cents). Price—$2 per share. Busi¬
ness—The company is a general contractor. Proceeds—
For general corporate purposes. Office—116-55 Queens

Alderson

Ameco

American

Address—Wiggins, Colo.
Co., Inc., Denver, Colo.

Arkansas

Un¬

Brook

grocery

business. Proceeds

—

•

Ameco Electronic Corp. (8/8-12)
May 19 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—

corporate

Office

purposes.

37

—

E.

18th

Street, New York, N. Y. Underwriter—Palombi Secu¬
rities Co., New York, N. Y.
American Bowla-Bowla Corp.

April 15 filed 120,000 shares of
the

purchase

cover

price of two
and

fixtures

an

of

an

common

stock and

war¬

additional

initial

installment

(Mainland

(Pearson,

Securities

Corp.)

Murphy

&

Co.,

(Bertner

Bros.)

&

;■

-

(Ross,

Lyon

Harold

C.

&

Co^,

Shore

(par 10 cents). Price—$1 per share. Pro¬
ac¬

Underwriter

Lee Filter Corp
(Myron

A.

Proceeds—
corporate purposes including construction
debt reduction. Office
1725 West Sixth

general

City. '

St., Los

& Co.,

(William R.

share. Additional shares may be sub¬
scribed for at $8 per share.
Price—$8 per share. Pro¬
ceeds—To increase
capital and surplus. Office — 1455

Staats

&

Hammill

&

Bache

Co.).

is

non-voting

proposed

sale




in

that
units

com¬

these securities will

(2,000)

known

Continued

on

C.

Fricke

Rez-Tile

August 9

Inc

Crow

Inc.)

as

page

be

In-

29

Securities

Globus,

Inc.)

$700,000

LCommon

...

70,000 shares..

Corp...
Inc.

Co.,

Warrants

and

Globus,

Inc.)

35,000

'

Common

$300,000

Common

;

&

Co.,

Laboratories,

(Hallowell, Sulzberger,

Inc.)

Inc.)

$700,000

Inc.__.__——Common

Jenks,

Kirkland

&

Co.)

Whitmoyer Laboratories, Inc.
(Hallowell,

Sulzberger,

Jenks,

$510,000

Debentures

Kirkland

&

Co.)

$500,000

Wilier Color Television System, Inc

August 16

-Common

Associates)

(Lehman

j

_

Co.)

300,000

shares

.

Brothers)

350,000

August 17

v

General

Co.)

150,000

Corp

Conv.

Noyes

&

Co.)

(White,

Miami Tile &

Debentures

(Noon

Stanley &

Co.)

Debentures

$150,000,000

Weld

&

Common

Co.)

493,425

shares

D.

Cerf

Jr.

Common

Co.

Inc.)

$437,500

Natural Gas Pipeline Co. of America
(Dillon, Read & Co., Inc.)

145,000 shares

Natural

Equip. Trust Ctfs.

E'DTl

Debentures

$35,000,000

Terrazzo, Inc

(Floyd

$2,000,000

Common

(McDonnell & Co., Inc.)

EDT)

m.

Harcourt, Brace & Co., Inc

shares

Co

a.

shares

Acceptance Corp

(Morgan

..Common
&

135,000

Co.;

(Wednesday)

Motors

shares

Corp
Noyes

■:

Com.

$290,000

Common

Brothers)

Telephone

(11:00

Common

Common
Inc.)

$300,000

(Tuesday)
&

Corp....

Holman & Co.,

Industries, Inc

Common

Mahcr

(Tuesday)

Duralite
(R. A.

Infrared

(Hemphill,

Netherlands

Debentures
and

Capital

American Research & Development Corp

Evans Rule

Common
$300,000

$1,000,008

Wickett & Co.,

$450,000

Electronics, Inc

(Hemphill,

$264,900

Common

...

Inc.

(Lehman

Inc.

(Richard Bruce

Common

(Shields

Common

_

Co.)

and

Whitmoyer

and

Sav-A-Stop, Inc.

American

$300,000

Wegard & Co.; Street & Co., Inc.; Woodcock, Moyer,
French; First Broad Street Corp. Russell & Saxe and

American

R.

.

(Equity Securities Co.) $242,670

Industries,

Sea-Highways,

.

&

V. S.

shares

/•.

Capital

Inc.

Inc.)

Co.,

&

>

Common
Inc.)

Securities

United States Boat Corp.

(Vickers, Christy & Co., Inc. and First City Securities,
Inc.) $300,000
■

(Pistell,

$750,000

Co.,

Capital

Common

Gas

Pipeline

Co.

(Dillon, Read & Co., Inc.

$7,530,000

Cum. Ffd.

150,000 shares

of

America

Bonds

and Halsey, Stuart &

Co.

Inc.)

$25,000,000

Navajo Freight Lines,

Inc .—..Common

(Hayden, Stone & Co. and Lowell, Murphy & Co.)

Trans-Coast

250,000 shares

Investment

(Lehman

Safticraft Corp.

Common

...

O'Neill

&

Inc.)

Co.,

$825,000

Variable Annuity Life Insurance Co. of
America
(John C. Legg & Co.)

August 10

v

;

.

(Blunt

Ellis

&

August 22

1,000,000 shares

Simmons

Common

(Lehman

Service)

Brothers;

$125,000

Chematomics,
1

$5,000,000

Inc.
to

Conv.
&

Co.,

Inc.)

by
$2,500,000

Power Cat Boat Corp
(Holton,

Roliton

Debentures

stockholders—underwritten

Byilesby

H.

&

Co.)

Securities,

Read

&

Co.,

Inc.)

Inc.)

A.

August 11
(George,

Electro-Tec

$25,000,000

A.

&

Co.,

Inc.)

Hyster Co,
McKesson

Western Kentucky Gas Co
(Equitable

Securities

Corp.)

..Common
55,000

shares

National
(J.

$564,900

&

Co.,

Common

Inc.)

$350,000

Products, Inc

Holman

&

Co.,

Debentures

Inc.)

$330,000

Common

Ripley & Co., Inc.) 135,000 shares

Christy

&

Co.,

Conv. Debentures
Inc.)

$300,OCo

Common

_—

&

&

Co.,

Sachs

Sloss

Capital
A.

Inc.)

130,000

Robbins, Inc

(Marron,

Common

$2,010,000

Co.)

Products, Inc

Miles-Samuelson Inc.

Inc.—

$4,000,000

Corp.

(Blyth

Debentures

Co.)

Honey Dew Food Stores, Inc

$300,000;

(Thursday)
O'Neill

Co.)

Common

(Goldman,

Bruce National Enterprises,

&

Capital

&

Securities

Hclman

(Vickers,

Common

Fuller

Deluxe Aluminum

$175,000
—

(Harwyn

Common

Whipple

Inc.

(Harriman

$300,000

Common
(Copley .& Co.)

D.

(Pleasant

(R.

Corp.

(Dillon,

M.

—_Common

Henderson

Bacon,

shares

(Monday)

Deluxe Aluminum
(R.

(Offering

and

Avionics Investing Corp.

Cenco Instruments Corp.—.Conv. Debentures

Hydrometals,

shares

Common

Capri Pools, Inc
Securities

Common

400,000

Warner Electric Brake & Clutch Co..

(S.

(Nassau

Co.__

Brothers)

154,916

(Wednesday)

Texas Eastern Transmission Corp

It

Co.

&

1,000,000

American Mortgage Investment
Corp.
April 29 filed $1,800,0U0 of 4%
20-year collateral trust
bonds and 1,566,000 shares of
class A

public

Lyon

$962,500

Softol, Inc.

for

(L.

Inc.; Reich & Co.;
Godfrey, Hamilton, Magnus

Ave., Memphis, Tenn. Underwriter—Union Secu¬
rities Investment
Co., of Memphis, Tenn.

stock.

Units

—

Co.;

Co.)

United Aero Products Corp

(Vickers, Christy & Co., Inc. and First City Securities,
Inc.)
$300,000

per

Union

offered

(Ross,

National Electronic Tube Corp..

New York

American Frontier Life Insurance
Co.
Nov. 30 filed 200,000 shares of
capital stock being offered
for subscription
by holders of common stock of record
June 1, on the basis of one share
for each six shares
then
held, with rights to expire at 2:00 p.m. CST on

mon

Lyon &

'

•

Merrill, Turben & Co., Inc.)
$5,000,000

Lewis

Transnation Realty

—Debentures

Metropolitan Development Corp
Shearson,

$100,000

.Common
and

(Ross, Lyon & Co., Inc. and Globus, Inc.)

$10,000,000

Lomasney & Co.)

Co.)

-Common

Transnation Realty Corp.

——

(George,

_

—

(Ross,

Globus,

and

Edden

Transnation Realty Corp.

'& Co.) $800,000

290,000 shares of

inventory, expansion, and to increase

Angeles, Calif. Underwriter—Shields

Inc.;

& Co.

Co.

Co.,

325,000 shares

Co.)

$300,000

_

8s

Winston & Co.,

(J. A.

..Common

—

Stearns

Earl

(Equity Securities Co.)

Telephone & Telegraph Corp.,

(Bear,

Inc.)

Tempest International Corp.—.

Common

America

Common

Co.,

Terminal Electronics, Inc

..

Sud

and

(Equity

Units

Fitchburg Paper Co
International

&

Telephone & Electronics Corp

$500,000

■

$600,000

Electronics, Inc

Common

$325,000

(White, Weld & Co.)

.'Common
200,000 shares

Common

(Edward

$262,750

Inc.)

$300,000'

Inc

Ohio

Tech-Ohm

(Frank B. Bateman, Ltd., Hardy & Co. and Jack
M. Bass & Co.) $300,000

Co., Inc., New York, N. Y.

Aug. 30, at $7

Jeffrey-Robert

$287,500

Consolidated Research & Mfg. Corp

V

Fund,

Common

(Havener

Common

Corp.)

Lomasney & Co.)

Bros,

Common

Louisville & Nashville RR

American Electronics, Inc.
(8/9)
June 13, 1960, filed
300,000 shares of common stock (par
$1). Price—To be supplied by amendment.
and

Techno

$300,000

Conetta Manufacturing Co., Inc.—

and

$4,125,000

_l_Common

(Purvis

(The

and

Curtis

&

Sons)

Investing

A.

Units

Corp.

$290,000

Units
&

System Meat Co

shares

Corp.

Avnet Electronics

counts receivable.
Address—Loudon, Tenn.
—R. A. Holman &

For

Securities

Inc.)

Jackson

Brown

Schramm

(S.

(Bertner

102,500

Co.,

Sealed Air Corp

$297,000

.Common

Co.)

&

Corp.)

Chemtree

Avnet Electronics

American Duralite Corp. (8/16)
June 30, 1960 (letter of
notification)
For

Co.)

Chemical Packaging Co., Inc

additional bowling centers; for furniture
thereon; and the balance to be added to

stock

Magaril

Inc.—

Hogle

the purchase

on

•

—

J.

Michigan Bell

working capital and be available for general corporate
St., Union City, N. J. Under¬
writer—Hill, Thompson & Co.. Inc.. New York.

ceeds

J.

Battery Corp

(John

purposes. Office—400 38th

common

and

"

$300,000

Components, Inc

Common

Inc.

(Willis E. Burnside & Co., Inc.)

(8/8-12)

60,000 shares,
The company proposes to offer these securities
for pub¬
lic sale in units consisting of two shares of stock
(par
25 cents) and one warrant.
Price—$6.50 per unit. Pro¬
ceeds—To

Rotating

shares

Inc

Co.,

A.

75,000

Co.)

Common

Co., Inc.)

Common
&

Webber,

(Myron

Common
&

Common

Pacotronics, Inc.

shares

.

$299,700

Inc

&

(Cruttenden, Podesta & Co.)

.Common

3O.Q00

Inc.)

Needham Packing Co._

$400,000

Inc

,

Winston

A.

Products, Inc

(General

Debentures

Sons)

Sons)

J.

National Fountain Fair Corp

$390,000

Corp.

Machine,

Cellomatic

&

Stearns

Company,

(J.

To

selling stockholders. Office—933 Lee St., S.W., Atlanta,
Ga. Underwriters—Kidder,
Peabody & Co., and Wertheim & Co., both of New York
City (managing).

for

&

Kings Electronics Co., Inc

Business—The company operates 48 supermarkets in and
around Atlanta, Ga., and, in
addition, conducts a whole¬

rants

Inc.)

and

Co

Patterson

Alex.

Dwyer-Baker Electronics Corp

ir Alterman Foods, Inc.
July 27, 1960 filed 100,000 outstanding shares of common
stock (par $2.50). Price—To be supplied by amendment.

general

&

Campbell

offering has been postponed.

For

Labs.

(Sandkuhl

Bowling Centers, Inc.
$750,000 of sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For general cor¬
porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas. Note — This

institutional

Edwards

(Bear,

filed

and

Co.,

Edwards

Benson-Lehner

Washington, D. C.

sale

G.

G.

(A.

Allied
29

&

T.

(Paine,

Units

Industries, Inc

Arkansas Valley Industries,

Allegheny Pepsi Cola Bottling Co.
June 9, 1960, filed 200,000 shares of common stock and
$500,000 of 6%% first mortgage bonds, due 1963 through
1972. Price—$5 per common share (par 50 cents), and
bonds at 100 % of principal amount. Proceeds—To pur¬
chase the outstanding shares of the Cloverdale Spring
Co., and the balance for the general funds. Office—
Guildford Ave., Baltimore, Md. Underwriter—Weil & Co.

Dec.

Thompson

Lestoil

$300,000

Corp

Common

$300,000

Industries,

Finance

(J.

Common

Bowla

Valley
(A.

e Alderson Research
Laboratories, Inc. (8/8-9)
May 26 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office—48-14 33rd St., Long
Island City, N. Y. Underwriter — Morris Cohon & Co.,
New York, N. Y.

of

Bowla
(Hill,

Agricultural Research Development, Inc.
May 23 (letter of notification) 120,000 shares of common
stock (par five cents). Price-—$2.50 per share. Proceeds
•—For construction of buildings, purchase of equipment
working capital.

Fairmount

Common

Corp

shares

Common

Co.,

(Flomenhaft, Seidler

(Palombi Securities Co.)

Co., Newark, N. J.

derwriter—Ladet &

Electronic

North

Electromagnetic

Inc

120,000

Inc.

Co.,
& Co., Inc.)

M.

'

134,739 shares

Securities

(E.

$300,000

Laboratories,

Co.)

Electri-Cord Manufacturing
Co., Inc.

(Morris Cohon & Co.) $300,000

Boulevard, Forest Hills 75, N. Y. Underwriter—Bennett

and for

Research

&

underwriting)

Common
.Common

(Monday)

August 8

stock

Peabody

'

....Common

.

(Netherlands

$410,000

Investors)

133,000 shares

Dunbar Development Corp

V

»

Co.)

Dalto Corp.
(No

C. F. C. Funding Inc

July 20, 1960

&

Common
Hammill &

City Gas Co. of Florida

$850,000

Cafeterias for Industry,
(Richard

ISSUE

(Monday)

(Kidder,

Automatic

(No underwriting)

common

REVISED

(Shearson,

Rayson Craft Boat Co
Adson

ITEMS

•

August 15

Common

—

Kletz

G.

PREVIOUS

Arnoux Corp.

Electronics, Inc
(Michael

of the underwriter
in general, to be considered as firm

offering dates.

CALENDAR

(Friday)

August 5

items reflect the expectations
but

Registration

ADDITIONS

SINCE

Debentures
Co.)

—

&

Corp

Winston

Securities

&

&

shares

Co,, Inc.)

$15,000,000

Common
100,000 shares

.Common

Co., Inc. and Netherlands
Co., Inc.) $1,200,000

Volume 192

Pearson

Number 5974

.

.

The Commercial and Financial Chronicle

.

Corp

Common

A-

Holman

&

Co., Inc.)

50,000

(Arden

Perin

&

Co.,

Inc.)

&

Co.)

(Offering
/•;

75,000 shares

Northern Pacific Ry

August 25
1

C

Xnc.

„

Majestic

Utilities

'

~

(The

Electronics

(Standard

Co.)

Bvuuo-Lenthner,

Co.,

Co.

&

and

Inc.)

Common

October 4

Co.)

August 30

be

Perkin-Elmer

(The First Boston Corp.
and

Triangle

&

.

October 6

,

Lumber

Co.)

100,000

Corp

shares

Co.)

September 6
Industrial
(G.

Timer

Walker &

H.

and

C.

to be

&

Wir.slow,

Unterberg,

Towbin

&

(Bids

shares

repay

Certificates, each representing $900 of bonds
Price—$1,800 per unit. Proceeds
principally to originate mortgage loans and
carry them until market conditions are favorable for
disposition. Office — 210 Center St., Little Rock, Ark.

invited)

noon)

'

Underwriter—Amico, Inc.

Development Corp. (8/9)
June 28, 1960, filed 350,000 shares of common stock. Price
—To be supplied by amendment. Proceeds—To be added
to the general funds of the company and will be avail¬
able for investment in
as

accordance

with

its

the management may approve,

investment

(a) in new

projects and (b) in company in which the issuer has
already invested funds. Office—200 Berkeley St., Boston,
Mass. Business—Registered investment company.
Un¬
derwriter—Lehman Brothers, New York.
American & St.
Jan. 27

Lawrence Seaway Land Co.

filed 538,000

shares of common stock, of which
Price—$3 per
share. Proceeds—To pay off mortgages, develop and im¬
prove
properties, and acquire additional real estate.
Office—60 E. 42nd St., New York City. Underwriter—
A. J. Gabriel Co., Inc., New York City.
350,000 shares

to be publicly offered.

are

American Stereophonic Corp.
April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th St.,
New York, N. Y. Underwriter—Hamilton Waters & Co.,

Inc., 250 Fulton Ave., Hempstead, N. Y.
^ American Title Insurance Co.
July 27," 1960 filed 301,884 shares
(par

$2),

of which

150,000

offered for the account

shares

of
are

stock
publicly

common

to

be

of the issuing company and the

balance is to be used in connection with exchange offers
for the stock of similarly engaged companies. Price—
To

be supplied by

amendment, Proceeds—For general
corporate purposes, including possible future acquisi¬
tions/Office—901 N. E. 2nd Ave., Miami, Fla. Under¬
writers—A. C. Allyn & Co., Inc., and Bache & Co., both
of New York City (managing). :Offering—Expected in
mid-September.
'
r
,

• Arco
Electronics, Inc. (8/5-12)
May 10 filed 170,000 shares of class A common stock.
Price—$5 per share. Proceeds—$350,000 for general cor¬

porate

the balance for working capital.
Office—New York City. Underwriter—Michael G. Kletz
& Co., Inc., New York City.
purposes

and

$50,000,000

December 6

share of
per

$20,000,000

the preferred shares at $52 per share, and common shares

share, initially through subscription warrants.

The holders of outstanding preferred stock will be en¬
titled to purchase the new preferred at the rate of one
new share for each 10 shares held. Common stockholders
be

entitled

to

shares at the rate
held.

The record

rights to expire

purchase

of

one

date

on




—

or

new

the

additional

share for

each

common
10 shares

for both groups

is June 23 with

about Sept. 16.

Proceeds

—

To

prise.
D. C.

To develop land as a tourist
Ariz. Underwriter—Pre¬

June 15, 1960,

Arkansas

Valley Industries, Inc.

(8/8-12)

9, 1960, filed $400,000 of 6% convertible subordin¬
ated sinking fund debentures and 30,000 shares of com¬
mon stock,
$3 par. $200,000 of the debentures will be
issued to Arkansas Valley Feed Mills, Inc.; the re¬
mainder of the registration will be publicly offered. Price
—To be supplied by amendment. Proceeds — To retire
current bank loans and increase working capital. Office
—Dardanelle, Ark. Underwriter—A. G. Edwards & Sons,
St. Louis, Mo.
•

(8/15-19)
May 23 filed 133,000 shares of common stock. Price—
To be supplied by amendment. Proceeds — For general
corporate purposes and working capital. Office—11924
W. Washington Blvd., Los Angeles, Calif. Underwriter—
Shearson, Hammill & Co., New York.
Corp.

Astrex Corp.
July 12, 1960, filed 100,000 shares of common stock. Price
—$4 per share/Proceeds — For general corporate pur¬
poses, including debt reduction. Business—The distribu¬
tion of equipment used principally in the electronics,
aircraft and missile industries. Office—New York City.

Underwriters—Clayton

Securities Corp., Boston, Mass.,
Maltz, Greenwald & Co., of New York City. Offer¬
ing—Expected in mid-September.
and

Bowling Corp.
June 27, 1960, filed 250,000 shares of common stock (no
par). Price—To be supplied by amendment. Proceeds—
To furnish and equip additional bowling centers, includ¬
ing the repayment of any temporary indebtedness so in¬
curred, and for working capital. Any balance will be
used for general corporate purposes, which may include
equipment of additional bowling centers, or the purchase
such

centers

from

the reduction of in¬
Street, Providence,
R. I.
Underwriters—Sutro Bros. & Co., New York and
McDowell, Dimond & Co., Providence, R. I. Offering—
Expected in late August or early September.
debtedness.

•

others,

Office—100

Automatic

Cafeterias

and

Medway

for

Industry, Inc.

May 31 (letter of notification) 41,848 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
For general corporate purposes.
Office—Dover, County
of Kent, Del.
Underwriter — Richard Gray Co., New
York, N. Y.
stock

Avionics

Investing Corp. (8/22)
July 12, 1960, filed 400,000 shares of capital stock (par
$1).
Price — $10 per share.
Business — The issuer is
a

closed

-

company.
concerns

end

non

-

diversified management investment

Proceeds—For investments in small business
in avionics and related

fields, with

a

proposed

$35,000,000

.

,

-i

■:

.•;'

(8/9)

filed $2,000,000 of convertible debentures,

1975, to be offered for public sale by the issuing
company and
150,000 outstanding shares of common
stock to be offered for the account of selling stockhold¬
Price—To be supplied by amendment. Proceeds—
debentures: to repay short-term bank loans, to

maintain inventory,
State St., Westbury,

and for working capital. Office—70
Long Island, N. Y. Underwriter—

Hemphill, Noyes & Co., New York City.
Bal-Tex Oil Co.,

Inc.
(letter of notification) 300,000 shares of
class A common stock.
Price—At par ($1 per share).
Proceeds—For expenses for development of oil proper¬
ties. Office—Suite 1150, First National Bank Bldg., Den¬
June

ver,

17, 1960

Colo. Underwriter—L. A. Huey & Co., Denver, Colo.
(8/8-12)

27, 1960, filed 75,000 shares of ^common stock, of
which 67,500 shares are to be offered for public sale by
the company and 7,500 shares, being outstanding stock,
by the present stockholders thereof.
Price— To ba
supplied by amendment. Proceeds—$95Q|000 will be used
to repay short-term bank loans the proceeds of which
were used for working capital, $100,000 will be advanced
to subsidiaries as working capital, and the balance will
be added to the company's working capital. Office—1860
Franklin St., Santa Monica, Calif. Business—Engaged in
the development, manufacture and sale of data process¬
ing equipment, research and service in the field of in¬
formation retrieval, and the development, manufacture
and sale of scientific cameras. Underwriter — Bear,
June

Stearns

Atlantic

of

"

•'

Benson-Lehner Corp.

Arnoux

Bonds

(Minn.)

due

ers.

June

Co.

Invited)

—

'

Of the

*

be

Avnet Electronics Corp.

ferred

Securities, Inc.

to

to be invested in any one such enter¬
1000 - 16th Street, N. W., Washington,
Underwriter—S. D. Fuller & Co., New York City.
Office

attraction.?" Off ice—Scottsdale,

Arden Farms Co.

will

common

sia.OOO.OOO

»nvlted»

limit of $800,000

•!-'*rv'.\

to be offered in units of one
and four shares of preferred.
Price—

unit. Proceeds

Bonds
be

(Tuesday)

and*

(par $4)

$250,000,000

(Thursday)

Northern States Power

Bonds

(8/5-10)

May 13, 1960, filed 44,278 shares of preferred stock, and
149,511 shares of common stock. The company is offering
at $15 per

stock

common

Telegraph Co.__Debentures

Georgia Power Co
(Bids to

(letter of notification) 12,000 shares of
(par $4) and 48,000 shares of convertible

preferred stock
$25

American Research &

1960

Bonds
$25,000,000

received)

be

(Tuesday)

November 3

Bonds

the equivalent portion of bank loans. Office—1900
Calif.

28,

to

(Bids to be received)

shares

'Arizona-New Mexico Development Corp.
June

$50,000,000

EDT)

a.m.

(Thursday)

October 25

vestment

and 783 shares of stock.

11

American Telephone &

Common

West Slauson Ave., Los Angeles,

—To be used

Bonds

Co

(Bids

shares

Pacific Power & Light Co

Co.)

Bonds
$16,000,000

invited)

be

Florida Power Corp

Inc.)

(Wednesday)

September 21

...Common

E.

to

(Wednesday)

Electric

October 20

Common
Whiteside

Chace,

258,556

Continued from page 28

policies,

Union

(Tuesday)
Corp.—

Co.

75,000

•

October 19

-Common

to

(Bids

Debentures
$30,000,000

(Tuesday)

(Bids

200,000 shrs.

Public Service Electric & Gas Co

$1,102,400

.

shares

(Tuesday)

Common

Stearns &

100,000

stockholders—underwritten by Merrill Lynch,
Pierce, Fenner & Smith Inc. and Kidder, Peabody & Co.)
(Offering

*

Louisville Gas & Electric Co

and Stern Brothers)

200,000

Common
&

Bonds
$5,000,000

Weld & Co.)

(Thursday)

18

October

$700,000

Missouri Public Service Co

Schwabac-her

$2,000,000

Co.)

Co

(Bids to be invited)

$125,000,000

Mfg. Corp

and

Preferred

Columbia Gas System, Inc

Inc

and

September 20

Co.

(Bear,

Inc.

Co.,

Pierce, Fenner

(Thursday)

California

of

Stearns

Inc.)

Enterprises,

(Blair &

Weld

Power

(Bids

Debentures

$25,000,000

(Monday)

September 19
Reva

and Merrill Lynch,

Inc.)

Inc.

Bonds

Co

invited)

be

(White,

$10,000,000

Candies, Inc

(Hairiman Ripley & Co.,

Globus, Inc.) $600,000

________

Smith

September 1
Fritzi

Russell Stover
Units

Corp

Common
$120,000,000

received)

Preferred

Common

Co.,

&

Nevada

Southern

$16,000,000

Corp.

(Blyth

Common

to

(White,

Bonds

invited)

(No underwriting)

'

;

(Tuesday)

Steel

be

Southern Nevada Power Co

East Central Racing & Breeders Association
Inc.
Units

$500,000

Properties, Inc.—

Republic

(Bear,

&

Development Corp.-

(Ross, Lyon & Co., Inc. and

$60,000,000

(Tuesday)

(Bids

$25,000,000

(Thursday)

September 15
Com*

$300,000

Schrijver

to

San Diego Gas & Electric

(Wednesday)

to

(Bids to be invited)

$300,000

Inc.)

(Bids

Bonds

Utah Power & Light Co

$400,000

(Globus, Inc. and Ross, Lyon & Co,) $150,000

•

Sachar

Bonds

Co

New York Telephone Co

,__

National Patent

(Wednesday)

(Bids to be received)

Common

be invited)

to

(Bids

Common

Cohon

Bonds

$12,000,000

N. Y. Time)

m.

September 28

Utah Power & Light Co

Itemco, Inc.-(Morns

a.

New York Telephone

Common

(Tuesday)

September 14

'

$660,000

Manufacturing Corp.___
&

(11:00

(Monday)

September 13

Common
Co.)

Corp

Schramm

Common

Virginia Electric & Power Co
(Bids

(The Tager Co.)

V

Heldor Electronics

(Tuesday)

September 27

Indianapolis Power & Light Co

(Kidder, Peabody & Co.) 254,000

Common
and

$600,000

shares

103,512

Yardney Electric Corp

$300,000

Inc..

Cory,

Common

Co.)

Common
underwriting)

$1,500,000

.Units

Co.)

Marshall

Collateral

(S.

&

Corp

Securities

Diversified

Sudler

(Monday)

Capital Investments,
Del

&

12

&

(Monday)

September 26

(Kidder, Peabody <Ss Co.) 74,546 shares

Corp.___

(Purvis

August 29

C.

Walker

Bonds

Co

Cavitron Corp.

Hammill

(No

Ennis Business Forms, Inc

$6,270,000

Common
Amos

Shearson,

,

II.

September

—Equip. Trust Ctfs.
EDT)

Telephone

(11:00 a.m. N. Y. time) $12,OOO.OGO

.Common

____

by

Rochester

Co.)

.

(G.

_

and

&

29

'

& Co.) 65,000 shares

Vitramon, Inc.

$60,000,000

(Thursday)

(Purvis & Co.

Hammill
*

stockholders—underwritten

to
\ ;

(Wednesday)
(Noon

Shearson,

shares

(G. H. Walker & Co.) $11,000,000

Bonds

California time)

a.m.

Capital
and

Co.

Narragansett Capital Corp..

August 23 (Tuesday)
<8:30

&

Milgo Electronic Corp
Common

Southern California Edison Co

August 24

Corp

Staats

R.

354,000

$215,000

—

Cohon

Financial

(William

Class A

Koto American Corp.
(Morris

Lytton

shares

Reilly-Wolff Associates, Inc

(481)

Black

&

Co., New York.

Hills

Power &

Light Co.

June 28, 1960, filed 32,842 shares
offered initially for subscription

ing common
new
on

of common stock, being

by holders of outstand¬
stock of record July 27 on the basis of one

share for each 12 shares held with rights to expire

Aug. 11. Price—$28.50

per

with other funds and funds

share. Proceeds—Together
hand, will cover the re¬
1960 construction

on

maining cost of the company's fiscal

program, including the repayment of interim bank loans
obtained for such purpose. Office—621 Sixth St., Rapid

City, S. Dak. Underwriter

—

Read & Co. Inc.,

Dillon,

New York.
Border

Steel

Rolling Mills,

Inc.

July 25, 1960 filed $1,300,000 of 6% subordinated con¬
vertible debentures, due- 1976, and
245,439 shares of
common
stock, of which the stock will be offered to
holders of record May 31, on the basis of 53V4 new shares
for each share then held. Price — For the debentures,
100%

of principal amount; for the
the construction of

Proceeds—For
lated

facilities,

general

funds.

stock, $5
a

per share.
and re¬

steel mill

land purchase, interest payments, and
Office — Mart Bldg., El Paso, Texas.
Securities Co., Dallas, Texas, and

Underwriters—First

Harold S. Stewart &

Co., El Paso, Texas (for debentures

only).
Continued

on

page

30

1

30

The Commercial and Financial Chronicle

(482)

Continued from page 29

•

'/>

-

it Boston Capital Corp.
Aug. 3, 1960 filed 1,500,000 shares of common stock.
by amendment, but proceeds are

Price—To be supplied
I

$22,000,000. Business—The
issuer is a closed-end, non-diversified management in¬
vestment company. Proceeds—To invest for capital ap¬
preciation in small businesses. Investment Advisor—Al¬
lied Research & Service Corp., 75 Federal St., Boston,
Mass. Underwriter—Shearson, Hammill & Co., New York
expected

City

to

aggregate

over

(managing).

,

Bristol

Dynamics, Inc.
28, 1960, filed 124,000 shares of common stock, of
which 69,000 shares are to be offered for public sale for
the account of the issuing company and 55,000 shares,
being outstanding stock, by the present holders thereof.
Price—$6 per share.
Proceeds—$100,000 for expansion
and further modernization of the company's plants and
equipment; $100,000 for research and development of
new
products; and the balance (about $123,000) for
working capital and other corporate purposes. Office—
June

219 Alabama

Ave., Brooklyn, N. Y. Business—Designing,
engineering, manufacturing, producing, and selling elec¬
trical

and mechanical

assemblies, electronic and missile
hardware components and special tools and fabrications.
Underwriter
William David & Co., Inc., New York.
—

Offering—Expected in late August

or

early September.

23,

kuhl

&

Company, Inc., New York

N. J. and J. I. Magaril Co., 37 Wall

City and Newark,
St., New York, N. Y.

•

Bruce National Enterprises, Inc.
(8/11)
April 29 filed 335,000 shares of common stock (par 10
cents).
Price—$6 per share. Proceeds—For reduction
of

outstanding indebtedness; to pay off mortgages on
property; for working capital and other corpo¬
purposes.
Office—1118 N. E. 3rd Avenue, Miami,

Fla.

Underwriter

—

George, O'Neill & Co., Inc., New

York.

v,/';

Buzzards

Bay Gas Co., Hyannis, Mass.

customers' sales tickets. Proceeds—To
$300,000 of outstanding 6% subordinated partici¬
pating debentures at 110% of principal amount, to in¬
crease working capital, and to reduce indebtedness. Of¬
fice—620 11th Street, N. W., Washington, D. C. Under¬
writer— Auchincloss, Parker &
Redpath, Washington,
D. C. Offering—Expected in late August.

supplied by amendment. Underwriter—

Offering—Indefinitely
■.:}

•
Byer-Rolnick Hat Corp.
May 9 filed 100,000 outstanding shares of common stock.
Price
To be supplied by amendment. Proceeds — To
selling stockholders. Office—601 Marion Drive, Garland,
—

Tex.

Underwriters

—

Dallas

Rupe &

Texas

Son, Inc., Dallas,
111.

and Straus, Blosser &
McDowell, Chicago,
Note—This statement has been withdrawn.
•

C.

F. C. Funding Inc.

(8/5-10)
May 6 (letter of notification) 75,000 shares of common
stock (par 10 cents), Price—$2, per share. Proceeds—For
general corporate purposes. Office—90 Broad St., New
York 4, N. Y. Underwriter—Darius Inc., New
York, N. Y.
•

Campbell Machine, Inc. (8/8-12)
20, I960, filed 102,500 shares of outstanding com¬
stock (par $1). Price—To be supplied by amend¬
ment.
Proceeds—To selling stockholders.
Office—Foot
of Eighth Street, San Diego, Calif. Business—The com¬
pany conducts a shipyard business which consists of re¬
June
mon

pair

and

maintenance of U. S. Navy and commercial
Underwriter—J. A. Hogle & Co., Salt Lake City,

vessels.
Utah.

Capital Investments, Inc. (8/29)
July 15, 1960 filed 60,000 shares of common stock. Price
—$11 per share. Business—Issuer is
diversified

a

closed-end,

non-

management investment company providing
and advisory services to small business

equity capital

Proceeds

concerns.

For

—

general

corporate

purposes.

Office—743 No. Fourth St.,
Milwaukee, Wis. Underwriter
—The Marshall Co., Milwaukee.

Capri Pools, Inc.
June

23,

common

1960

(letter of notification) 125,000 shares of
stock (par one cent).
Price — $1 per share.

Proceeds—For

expansion, tooling, repayment of in¬
debtedness, working capital and inventory. Office—2838
N. Naomi Street,
Burbank, Calif. Underwriter—Nassau
Securities

Service, New York, N. Y.

no
oversubscription privilege, and rights to expire on
Aug. 12, at 4:30 p.m. EDT. Price — 100% of principal
amount. Proceeds—For the company's construction pro¬
gram. Underwriters — Kuhn, Loeb & Co.; Ladenburg,
Thalmann & Co.; Allen & Co.; A. M. Kidder & Co.

tends

it Carinthia

Ski

Area,

manufacture

to

and market high heat resistant
Underwriter—Pleasant Securities
.

corporate

Office

purposes.

—

755

Corp.

(8/8-12)

April 19

(letter of notification) 262,750 shares of com¬
cents). Price—$1 per share. Proceeds
—For general corporate purposes.
Office—100 W. 10th
stock (par 10

mon

City Gas Co.

of Florida

loans

which

(8/15-19)

are

•

closing the stock financing, $500,000 to complete the company's conversion and construc¬
tion program, and the balance for general corporate
purposes. Office—955 East 25th St., Hialeah, Fla. Busi¬

area

March

are

July 6,

ment.

capital. Business—The
cial

financing and

company

is engaged in

funds

to

business

commer¬

Estate

&

Development,

purposes.

of

acreage

multiple

Inc.

Dover, Vt. Un¬

'Y//'/' -/■'/

-

■■

•

160,000 shares of

V: ■///
com¬

stock

(par $1). Price—$1.25 per share. Proceeds—
For working capital.. Office—1350 Foothill
Road, Boule¬
vard," Salt Lake City, Utah. Underwriters—Potter In¬

Whitney & Co., Salt Lake City, Utah.
Corp; (9/26-30)
June 17, 1960, filed 40,000 shares of common
stock. Price

Refining Corp.

-

...

$15

per share. Proceeds—To finance the
company's anti¬
cipated growth and for other general corporate
purposes.

Office—42-15

Crescent

St., Long Island City, N. Y. Un-

writer—None.
•

Cellomatic

Battery Corp. (8/8-12)
May 20 (letter of notification) $270,000 of 6%
teed 5-year convertible notes and
6,000 shares

,

mon

guaran¬

of

com¬

stock

ing of
—$100

a

(par 10 cents) to be offered in units consist¬
$90 note and two shares of common stock. Priee

unit. Proceeds—For working capital. Office—
,300 Delaware St., Archibald, Pa.
Underwriter—Willi# I!
Burnside & Co., Inc., New York, N. Y.
:i /v
per




,

Conetta

Manufacturing Co., Inc.

Inc.

(8/22-26)

/

/

of principal amount;

I \ Detroit Tractor,

Co., Inc.

;

-

Ltd.

;
>

May 26 filed 1,375,000 shares of class A stock. Of this
stock, 1,125,000 shares. are. to be offered for /the com-*

;

pany's account and the remaining 250,000 shares are tobe offered for sale by the holders thereof. Price—Not toY
exceed $3 per share.
Proceeds—To be applied to the
purchase of machine tools, payment of $95,000 of note$

,

.

and

accounts

poses.

payable, and for general corporate pur¬
Office—1221 E. Keating Avenue, Muskegon, Mich.

Underwriter—To be supplied by amendment.

.

~

.

it Diversified Collateral Corp. (8/29-9/2)
July 26, 1960 filed (with the SEC in Atlanta)

.

>

75,000

shares

of common stock (par 10 cents).
Price—$4 per
Business—Mortgage financing in Florida. Proceeds
—For additional working capital. Office—Miami
Beach,
Fla. Underwriter—The Tager Co., 1271 6th
Ave., New
York City.
share.

(8/8-12)

June 3 filed 125,000 shares of class A common stock (par
10 cents).
Price—$4 per share. Proceeds—For general

corporate purposes including the reduction of indebted¬
ness, the purchase of machinery and equipment, and for

working

Products,

•

ic Commercial Banking Corp.
"
*
July 18; 1960 (letter of notification) $290,000 of 6% sub¬
ordinated debenture bonds due April 1, 1969 with five
year warrants to purchase common stock. Price—-$965
per $1,000
debenture. Proceeds—For working capital.
Office—104 S. 20th St., Philadelphia, Pa/Underwriter—
Suplee, Yeatman, Mosley & Co., Inc., Philadelphia, Pa.
•

Aluminum

Underwriter— R. A. Holman &
....

refinery. Underwriter—Lehman Brothers, New
-

Ave., Mount Vernon, New York.

—

debentures,
for the stock, $5 per share.
10,000 shares of the common stock, to
the present holders thereof; from the rest of the offering, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami. Fla.
100%

Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000-of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock.

Offering—Indefinite.

shares of

Proceeds—From

Dec. 16, 1957 filed $25,000,000 of first mortgage bonds due

York.

100,000

from its own designs, and sells high voltage
supplies, transformers, chokes, and reactors. Pro¬
working capital, relocation, and expansion.

Deluxe

vestment Co. and

Cavitron

Under¬

Oct. 15 filed $330,000 of convertible debentures, and
70,000 shares of common stock. Price—For the

and

Proceeds —To

Office—Norwood, N. J.

Standard Securities Corp., New York
City, and Bruno-Lenchner, Inc., Pittsburgh, Pa.

&

-

1960

stock

Office—521 Homestead

engage in the acqui¬
unimproved acreage, the development of that
into prepared sites for single-family homes,

Price—-To be supplied by amendment.

Price—To be supplied by amend¬
of notes and addi¬

Dynamics Corp.
(letter of notification)

May 31,

Underwriters

the sale of those sites to builders and others. Underwriter

construct

134,739 shares of common stock, to be
subscript/on by holders of such stock of
May 2 at the rate of one new share for each

ceeds—For

(par
share. Proceeds—For general corpor¬
Office — 704 Midland Savings Building,

Commerce Oil

(8/15-19)

filed

common

power

per

dwellings and commercial improvements,

of

stock,

Proceeds—For the retirement

makes,

Inc.

Denver, Colo. Business—Intends to
sition

capital

•

June 23, 1960, filed 150,000 shares of common stock
ate

of

Del Electronics Corp.
(8/29-9/2):
July 26, 1960 filed 100,000 shares of common stock (par
10 cents). Price—$4 per share.
Business—The company

concerns

—

Real

shares

tracts, for electronics research and sales promotion, and
other general purposes. Office—713 W. Main
St., Pal¬
Pa. Underwriter—.Plymouth Securities Corp., New
York, N. Y. Offering—Imminent.

Wisconsin and

Colorado

-

myra,

neighboring states. Office—530 North
Water St., Milwaukee, Wis. Underwriter
Robert W.
Baird & Co., Inc., Milwaukee, Wis.
•

50,000

N. W.,: Washington,
Co., Inc., New York,

(par 10 cents). Price—$3 per share. Pro¬
ceeds—For expenses of offering, to pay instalment con¬

of capital

supplies

Street,
Gabriel

for

Dechert

notes, series due
1980 (subordinated), with warrants to purchase common
shares, and 40,000 shares of common stock. Price—To be
supplied by amendment. Proceeds—To be added to the
company's general funds to provide additional working

in

J.

writer—None.

Finance Corp.

$650,000

H.

tional working capital.

in the process of conversion from liqui¬
gas

1960 filed

•

underwriter.

two shares then held.

to natural gas systems. Underwriter
—Kidder, Peabody & Co., New York.
Civic

as

Corp.

29

record

—

which

'"

conditions.

Da 11 to

offered

The company and its subsidiaries distribute gas
through underground distribution systems in the Miami

fied petroleum

Office—1737

Underwriter—A.

/ market

expected to exist in such

amount at the time of

ness

Office—Suite
Ark., Underwriter—.
"Y'••/ - ' V' .•

company.

Smith,

ing stockholders. Price—At-the-market at time of offer¬
ing. Proceeds—For additional working capital. Office—•
5575 Kearney Villa Road, San Diego
11, Calif. Under¬
writer—Hayden, Stone & Co., New York City. Note—
This offering has been indefinitely postponed due to

funds, will be used for repayment of $2,800,-

of bank

Fort

which 25,000 shares are being offered for the account of
the company, and 25,000 shares for the account of sell¬

June 27, 1960, filed 120,000 shares of common stock. Price
be supplied by amendment. Proceeds — Together
000

C.

Cubic Corp.
June 8, 1960, filed

—To

with other

insurance

an

Bldg.,

;:/••/;-'/''/"/ '-///'//,>'■'/

'.

has withdrawn

Inc.

Peck, New York. Note — The underwriter
state that this filing will be withdrawn.

(letter of notification) 140 shares of com¬
(no par). Price—$1,000 per share. Proceeds—
To operate a ski resort. Address—West

Castleton's, Inc.
June 13 (letter of
notification)

D.

stock, $Lper share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
service. Office—Washington, D. C. Underwriter—None.
•

.

cilities.

Street, Wilmington 99, Del. Underwriter—Havener Se¬
York,, N. Y.
Circle-The-Sights,

Kennedy

Country Club Corp. of America
April 29 filed 200,000 shares of common stock (par 1®
cents). Price—$3 per share. Proceeds—For repayment
of outstanding debt, including payment of mortgages^
taxes, notes, and miscellaneous accounts payable; for
general corporate purposes and construction of new fa¬

Jeffrey-Robert Corp., 382 S. Oyster Bay Road,
Hicksville, L. I., N. Y.

mon

operation of

205

*

of

•

and

Chemtree

For

None.

shares

stock (no par). Price—$3 per share. Proceeds—•

common

Utica Avenue, Brooklyn, N. Y. Underwriters—Mainland
Securities Corp., 156 N. Franklin Street, Hempstead, N.
Y.

of

as

it Continental Reserve Life Insurance Co.
July 22, 1960 (letter of notification) 60,000

Chemical Packaging Co., Inc. (8/8-12)
March 16 (letter of notification) 115,000 shares of com¬
mon stock
(par 10 cents). Price—$2.50 per share. Pro¬

general

holders

of 3:30 p,m.. EDT, July 26, at the rate of $109
of debentures for each 25 shares of stock then held with

•

ceeds— For

filed $38,101,600 of 4%% convertible debs.,

1975, being offered for subscription by

record

Price—$3 per
general corporate purposes. Office
East 42nd Street, New York, N. Y. Business—In¬

exchange resins.
Co., Newark, N. J.

stock

derwriter—N one.

due

Proceeds—For

ion

<

Consumers Power Co.

ing stock, by the present holders thereof.

—Adams

July 25, 1960
mon

share of each class.

one

June 15, 1960

$2). Price—$5

(8/10)

units of

(8/22-26)
June 24, 1960, filed 188,300 shares of common stock (par
10 cents), of which 175,000 are to be offered for public
sale by the company and 13,300 shares, being outstand¬

March 30 filed 165,000 shares of common stock and $330,000 of debentures (10-year 8% redeemable). Price—For

postponed.

//;>/'

Price—$6.50 per unit. Proceeds—For equipment, sale#
expansion, increased advertising and marketing program
budget, and working capital and general expansion. Of¬
fice—1184 Chapel Street, New Haven, Conn.
Under¬
writer—Bertner Bros., New York.

Chematomics, Inc.

share.

.

Manufacturing Corp.

"

to offer these shares in

redeem

Price

To be

Research &

••

May 27 filed 50,000 shares of class A and 50,000 sharer
of class B stock (par 10 cents).
The company proposer

discounting

by

Consolidated

(8/8-12)

issuer

curities Corp., New

Coffin & Burr, Inc., Boston, Mass.

'»!(

The

•

provides a retail
charge account service and credit facilities for merchants
—

or

opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
Ark. Underwriter—The Huntley
Corp., Little Rock. Ark.

18, 1960, filed $2,000,00 of subordinated sinking
fund debentures, due Aug. 31, 1975, with attached war¬
rants to purchase 60,000 common shares, and an ad¬
ditional 60,000 common shares. Price—To be supplied by

July

Business

intermediate

financing of the con¬
pre-fabricated type residential or
commercial buildings and facilities upon properties to
be acquired for sub-division and
shopping center devel¬

Charge Service, Inc.

amendment.

Thursday, August 4, 1960

.

and

struction of custom

,

.

Central

June 7 filed 27,000 outstanding shares of common stock,
to be offered for sale by American Business Associates.
—

fund for initial

by amendment. Proceeds—To be added to the general
Irving Park Rd.,
Chicago 13, 111. Underwriter — Lehman Brothers, New
York.

.

Consolidated Realty Investment Corp.
April 27 filed 2,000,000 shares of common stock. Price—$1 per share. Proceeds—To establish a $250,000 revolving

funds of the company. Office—1700 W.

certain
rate

Corp. (8/10)
$5,000,000 of convertible subordi¬
Aug. 1, 1980. Price—To be supplied

1960, filed

nated debentures due

—122
• Brooks Labs.
Co., Inc. (8/8-12)
May 31 (letter of notification) 108,000 shares of common
stock (par 10 cents) of which 28,000 shares are being
sold for selling stockholders. Price — $2.75 per share.
Proceeds—For general corporate purposes. Office—650
Lincoln Place, Brooklyn 16, N. Y. Underwriters—Sand-

Instruments

Cenco

June

.

capital.

Office—73 Sunnyside Ave., Stamford,
Conn. Underwriter — Pearson, Murphy & Co., Inc., New
York City.
V
;•* ''■ :...•/
•<

*

Diversified Realty Investment Co.
April 26 filed 250,000 shares of common stocks Price—
$5 per share (par 50 cents); Proceeds — For additional
working capital. Office—919 18th Street, N. W., WaSh-

-

i

-

Volume

ington, D'. C.
ton, d. c. :•»'

192

Number 5974

.

.

.

The Commercial and

Underwriter—Ball, Pablo & Co., Washing¬

capital

•

—To

bond ($100 principal
or

one

—

common,

$2

share;

per

the

Carleton

and

amount)

be

used

Securities
Fischbach &

414 Pioneer

South

corporate

com¬

ProV
selling stockholders. Office—New York City.
Underwriter—Allen & Co.,, New York City.

ceeds—To

Offering-

Expected in late August.

Y

•

Fitchburg Paper Co., Fitchburg, Mass. (8/8-12)
June 28, 1960, filed- 325,000 shares of class A
common
stock, of which 217,000 shares

are to be offered for pub¬
lic sale for the account of the
issuing company and 108,000 shares being
outstanding stock by the present holder
thereof. Price—To be supplied
by amendment. Proceeds

purposes.

Hackensack,

—Together with other funds, will be used to purchase
and retire the
outstanding preferred stock of the com¬

21, 1960, filed 1,136,890 shares of common stock,
being offered for subscription by common stockholders
of record July 26,
I960, at the rate of one new share for

June

at a cost not in excess of $114,000; to
pay in full
the outstanding 5%%- notes held
by New England Mu¬
tual, the unpaid principal amount of which at June
T,
1960 was $787,500;
$1,400,000 for construction of a new
and larger plant for the Decotone
Products

each 15 shares then

$450,000 for completion of

common

11, at 5:00

Bldg., St. Paul, Minn. Underwriters—Irving J. Rice &
Co., Inc., St. Paul, Minn, and M. H. Bishop & Co., Min¬
neapolis, Minn.

El

Dwyer-Baker Electronics Corp. (8/8-12)
20, 1960 (letter of notification) 100,000 shares of
stock (par 10 cents). Price—$3 per share. Pro¬
ceeds—To pay current maturity of mortgage and notes
and for working capital. Office—7400 N. W. 13th Ave.,
Miami, Fla. Underwriters — Frank B. Bateman, Ltd.,
Palm Beach, Fla., Hardy & Co., New
York, N. Y., and
Jack M. Bass & Co., of Nashville, Tenn.

of

pany

Co.

current

bank

loans

the

and

balance

Gas Products Co.

will

be

common

Paso

White, Weld & Co., New York.

used

Ennis

stock

Natural

Underwriter—White, Weld & Co., Inc.

working capital. Address—

selling stockholders. Office *— 214 West
St., Ennis, Texas. Underwriter—Kidder, Peabody
& Co., New York City.

Corp.
April 29, 1960 (letter of notification) 100,000 shares of
common stock (par 10 cents). Price—$1 per share. Pro¬

•

Inc., New York, N. Y.

Express, Inc.
April 1 (letter of notification) 77,000 shares of common
stock (par $1).
Price—$2.50 per share.
Proceeds—To
repay notes payable, reduce equipment purchase obliga¬
tions, accounts payable and for working capital. Office
—109 M Street, Anniston, Ala.
Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.
Central

(9/15)
A
/y-Mo/'W'July 5, 1960, filed 200,000 units of 200,000 shares of cap¬
ital stock and 200,000 warrants to purchase capital stock.
Each unit will consist of

purchase of

one

share and

one

warrant for

additional share exercisable within

an

12 months.

Price—$3.50 per unit. Proceeds—First step in
the management's program if this financing is successful
and after allocating $10,000 to
finishing a training track
surface and $25,000 to property accruement and mainten¬
ance, is the construction of about 15 stables to accommo¬

.

June

date 32 horses each at

Business

—

An

Proceeds—For payment of current

an estimated cost of
$22,500 each.
$200,000 has been allocated for construc¬
a
building covering an indoor training track
and $74,000 for working capital. Office—
Randall, N. Y.
Underwriter—None.

additional

•

of

Edwards

April

8

filed

Engineering Corp.
85,000 shares of common stock of which

70,000 shares are to be offered for the account of the
issuing company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof.
Price—$3.50 per share. Pro¬
ceeds—For

general

corporate purposes including sal¬
promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New
Orleans, La. Underwriter—Sandkuhl & Company, Inp.,

aries,

sales

New York City and
•

Newark, N. J. Offering—Imminent.

Electri-Cord

Manufacturing Co., Inc. (8/15-19)
June 15 (letter of notification) 99,900 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For general corporate purposes.
Office—2554 E. 18th
Street, Brooklyn, N. Y. Underwriter—E. M. North Co.,
Inc., New York, N. Y.
'
•

Electromagnetic

June

22, 1960

Industries,

Inc.

(letter of notification)

(8/15-19)

75,000 shares of

stock

(par 10 cents). Price—$4 per share. Pro¬
general corporate purposes. Office—Greeley
Ave., Sayville, L. I., N. Y. Business—Manufactures and
sells transformers, magnetic components and electric in¬
common

ceeds—For

strumentation

and

control

devices.

Underwriter—Flo-

menhaft, Seidler & Co., Inc., New York, N. Y.
Electronic

Florida
June 21, 1960 (letter of notification) 100,000 shares cf
common stock (par 10 cents). Price—$3 per share. Pro¬
ceeds—To establish a new office, for salaries, research
and development and working capital. Office—424 W.
Developments,

Inc. of

Davis Blvd., Tampa, Fla. Underwriter—Carr-Rigdon Co.,

Inc., 4700 Nolensville Rd., Nashville, Tenn.
Electronic Specialty Co.'
June 2 filed 150,000 shares of

cents).
—To

be

»

J Y

(par 50
Proceeds
the general funds in anticipation of
common

stock

Price—To be supplied by amendment.
added

to




sale for the account of the

issuing company, and 70,000
shares, being outstanding stock, by the present holders
thereof.
Price—To be supplied by amendment. Busi¬
ness—Company is engaged in the production and sale
of popularly priced blouses and
sportswear coordinates
for girls and women. Proceeds—From the
stock sale, and
funds from working
capital, totalling $293,092.75, will be
contributed to the capital of Fritzi
Realty, a wholly
owned subsidiary, to purchase for cash from
177-First
Street Corp. the building
presently used by the com¬

notification) 60,000 shares of
Price —"$5 per share.

of

The

10 Cents).

manufacture

of

technical

instruments.

liabilities, an expan¬
sion program, and for operating capital. Office—42-61
Hunter St., Long Island City 1, N. Y.
Underwriter—
Elmer K. Aagaard, Suite 6, Stock Exchange
Bldg., 39
Exchange Place, Salt Lake City, Utah.
Fairmount Finance Co.

May 6

Underwriters—Bear, Stearns & Co., |of New York, and
<

58,000 shares of class A
(par $5). Price—At par ($5 per share).
working capital.
Office—5715 Sheriff
Road, Fairmount Heights, Md. Underwriter—J. T, Pat¬
terson & Co., Inc., 40 Exchange Place, New York, N. Y.
stock

Farms, Inc.
(letter of notification) $298,000 of 10-year 5%%
debentures, to be offered in denominations of $1,000,
$500 and $250 each. Price—At face value. Proceeds—
For working capital. Office—818 17th Street, Denver 2,
Colo. Underwriter—Wayne Jewell Co., Denver, Colo.

June 13

A- Federal Pacific Electric Co.
Aug. 2, 1960 filed 377,000 shares of common stock and
$45,000 shares of outstanding 5V2% convertible second
preferred series A stock, of which 127,000 common
shares represent part of the issuer's payment for all of
the outstanding common of Pioneer Electric Limited.
balance

will

be

offered

Schwabacher

&

Co., of San Francisco and New York.

•

(8/15-19)

Proceeds—For

The

Office—167-199 First Street, San
Francisco, Calif.

pany.

(letter of notification)

common

supplied

•

ic Fae Instrument Corp.
(par

be

and its

Fritzi of California
Mfg. Corp. (9/1-15)
July 5, 1960, filed 100,000 shares of common stock
(par
$1) of which 30,000 shares are to be offered for
public

Underwriters—Standard Securities Corp. and Pennaluna
& Co., Spokane, Wash, and Herrin
.Co., Seattle, Wash.
(letter

promotion

Ave., North Hollywood, Calif.
Underwriter—DempseyTegeler & Co., St. Louis, Mo. (managing).

share. Proceeds—For expenses for oil and gas develop¬
Office—E. 12707 Valleyway, Opportunity, Wash.

1960

To

by amendment. Business—The
subsidiaries will produce and market
television film series and related
enterprises. Proceeds
—For general corporate
purposes.
Office—4030 Radford

ment.

stock

sales

company

20, 1960 (letter of notification) 2,000,000 shares of
stock (par five cents). Price — 12l/z cents
per

28,

the

the

—

Price—To

common

July

for

expenses.
Office — Cedar Grove,
N,; J;" Underwriter—Fund Planning,
Inc., New York City.
Offering—Mid-to-late August.-yy ///■/
,'■/ : "-Y-,, y.-'
• Four Star Television
July 27, 1960 filed 120,000 shares of common stock.

be

Evergreen Gas & Oil Co.

common

tion

for

105,000 shares for the accounts of

selling stockholders. Price—To

r

Racing and Breeders Association,

Inc.

the

and

company

suppliechby
amendment. Business—The company manufactures and
sells precision steel measuring tapes and wood
folding
rules. Proceeds—To be used by the
company to purchase
two leased plants in Elizabeth, N. J. The balance of the
proceeds will be added to working capital and will be
available for general corporate purposes. Office—Eliza¬
beth, N. J. Underwriter — McDonnell & Co. Inc., New
York City.
J/y:
v >

East Alabama

East

the

certain

remainder

•

commomatock,(par
$1), of which 40,000 shares will be sold for the account

of

the

Foto-Video Electronics Corp.
Y/
April 26 filed 125,000 shares of class B stock. Price—
$4 per share. Proceeds—$100,000 for research and de¬
velopment, $200,000 for working capital, and the balance

(8/9-10)

June 17, 1960, filed 145,000 shares of

ceeds—For general corporate purposes. Office—178 Herricks RoacLMjpeola, N. Y. Underwriter—General Securi¬

ties Co.,

Evans Rule Co.

and

company

—

Knox

Electronics

the

selling stockholder. Price—$2 per share.
pay off debts and for working capital.
Office
c/o Robert R.
Chesley, 1235 E. Florence Ave.,
Los Angeles, Calif. Underwriter—Garat &
Polonitza, Inc.
Los Angeles, Calif. Note—The underwriter
states that
this offering has been
indefinitely postponed.
1
Proceeds

.

Dynatron

by

account of

Business

Proceeds—To

Underwriter—Gaston-Buffington-Waller

of

being

offered

Forms, Inc. (9/12-16)
July 14, 1960, filed .74,546 shares of outstanding common
stock (par $2.50). Price—To be
supplied by amendment.

Inc., Atlanta, Ga.

*

Fleetcraft Marine Corp.
July 5, 1960 (letter of notification) 150,000 shares
capital stock (no par) of which 112,500 shares are

(managing), New York City.
•

Division;

a new office
building; and the
balance for additional working
capital.
Underwriter—

p.m.

largely for investment in the notes and
of
subsidiary companies, principally El

Dynamic Center Engineering Co., Inc.
20, 1960 (letter of notification) 37,450 shares of
common
stock (par $1). Price—$4 per share. Proceeds
—To promote the sale of new products, for the purchase
of additional equipment and

Natural Gas

held, with rights to expire on Aug.
(EDT). Price—$29 per share. Proceeds
—To be used in part to repay not less than
$10,000,000

June

Norcross, Ga.

Paso

June

•

5

Moore, Inc.

June 28, 1960, filed 300,000
outstanding shares of
mon stock. Price—To be
supplied by amendment.

(8/22-26)

for general

Ave.,

—

—

Office—10
N. J.
Business—
Design, development, manufacture and sale of slip ring
and brush block
assemblies, switching devices and re¬
lays for electronic equipment. Underwriter—Harriman
Ripley & Co., Inc., New York.
Romanelli

Price—$2

First Investors Corp.
July 19, 1960, filed 270,000 shares of outstanding class
A common stock. Price—To be
supplied by amendment.
Proceeds—To selling stockholders. Office
New York
City. Underwriter—Bache & Co. Offering—Expected in
early September.

of

July 1, 1960, filed 135,000 shares of common stock (par
10 cents), of which 75,000 shares are to be offered for
public sale for the account of the issuing company and
60,000 shares, being outstanding stock, by the present
holder thereof.
Price—To be supplied by amendment.
Proceeds—To be added to the "company's general funds

unit of 50 bonds at

Office

expand

Electro-Tec Corp.

amount plus accrued interest. Price—To be
supplied by amendment. Proceeds—For additional plant
and equipment and to provide working capital to com¬
production.

A

Washington, D. C. Underwriter—
Corp., Washington, D. C. /;

principal

and maintain

class

company's inventory to go into the
of electrical equipment, and for
working capital. Office—1346 Connecticut Ave., N. W.,

,

stock

stock to be offered to the under¬

common

Prices—Of

150,000 shares of
per share. Pro¬
Office—Fairview
Riverside, Burlington County, N. J.
Metropolitan Securities, Inc., Philadel¬

(par 10 cents).

phia, Pa.

packaging and export

Minnesota, Inc.
:,YyApril 11 filed $650?000 of 7% fifst ihbrtgage bonds and
120,000 shares of common stock (par $1). The* offering
one

stock

common

stock

Underwriter

of

additional class A common, 2xk cents per share. Proceeds

building of homes. Underwriters—
Netherlands Securities Co., Inc., and J. A. Winston &
Co., Inc., New York, N. Y.(

common

common

ceeds—For general corporate
purposes.
& Hancock Streets,

Inc.
notification) 75,000 shares of
(no par) and 20,000 shares of addi¬

(letter

31

Fidelity Electronics Corp.
July 11, 1960, (letter of notification)

Fernando

Industries,

1960

writers.

and

and 20 shares of

San

tional class A

Development Corp. (8/15-19)
June 22, 1960 (letter of notification) 75,000 shares of
class A common stock (par 10 cents). Price— $4 per
sfrare. Proceeds—For general corporate purposes. Office
—237 Sylvester St., Westbury, L.T., N. Y. Business—Pur¬

will be made in units of

19,

class A

Dunbar

Durox of

Electro

July

$1,000 debenture and 100 shares of common stock.
Price—$1,100 per unit. Proceeds—For general corporate
purposes. Office—1238 Corlies Ave., Neptune, N. J. Un¬
derwriter—Fidelity Securities & Investment Co., Inc.,
Asbury Park, N. J.
,Y-

mence

requirements,
—

Inc.

one

land

(483)

possibly to include acquisitions.
Road, Los Angeles, Calif.
Underwriter
Bateman, Eichler & Co. of Los Angeles,
Calif. Offering—Expected in August.

May 6 (letter of notification) 100 units of $100,000 of 7%
sinking fund debenture bonds and 10,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of

of

Chronicle

Office—5121

Drug Associates,

chase

Financial

publicly. Price

—

To

be

supplied by amendment. Proceeds—To acquire the cash
necessary to complete the Pioneer payment (see above),
with the balance to retire short-term bank loans, and
be added to working capital. Office — 50 Terrace St.,

.

Frouge Corp.
July 22, 1960 filed $1,500,000 of 61/2% convertible sub¬
ordinated debentures, due September
1975, and 150,000
shares of common stock (par
$1), of which filing 50,000
of the

common

shares

are

to be offered for the account

of

selling stockholders and the balance for the account
of the issuing company. Prices — To be
supplied by
amendment. Business—The
company is engaged in the
construction business, both as a general contractor, and
as

builder for its

a

own

account.

Proceeds AL p0r debt

reduction and

working capital. Office—141 North Ave.,
Conn. Underwriter—Van
Alstyne, Noel &

Bridgeport,
Co., New York City (managing). Offering—Expected in
September.

late

Funded

Security Corp.

July 7, 1960, filed 200,000 shares of common stock. Price
—To be supplied by amendment.
Business—The issuer
is a holding company organized under Illinois law in
December, 1959. Proceeds—$600,000 will be transferred
to

the general funds of Funded

Co.,

a

pany
come

Security Life Insurance
newly organized legal reserve life insurance com¬
wholly owned by the issuer, for investment in in¬
producing securities and expansion through ac¬

quisition. "Office—2812

W.

Peterson

Ave., Chicago, 111.
Chicago, and Kal-

Newark, N. J. Underwriter—H. M. Byllesby & Co., Inc.,
Chicago, 111., (managing).
; Y\TY !Y

Underwriters—H. m. Byllesby & Co.,

it Fiber Glass Industries Corp. of America
July 21, 1960 (letter of notification) 100,000 shares of
common stock (par 10 cents) of which 80,000 shares are

Gateway Sporting Goods Co.
July 7, 1960 filed 70,000 shares of common stock (par
$5). Price—To be supplied by amendment. Proceeds—

to

be

offered

on

behalf

of

the

company

and 20,000 on

behalf of the underwriter. Price—$3 per share. Proceeds
—To purchase "material, repayment of a loan, for adver¬

tising and promotion
730 Northwest 59th

and

for working capital. Office—

man

&

Co., Inc., St. Paul, Minn.

Together with the proceeds from
loan from

an

an

anticipated $700,000

insurance company, will be used to retire

$425,000 bank loan and to finance the company's ex¬
pansion program. Business—The company is principally
a

St., Miami, Fla. Underwriter—Nelson

Securities, Inc., Hempstead, N. Y.

Continued

on

page

32

vf

32

The Commercial and Financial Chronicle

(434)

Continued from page 31
\

*
•

'

'

*

♦

.

*1

.

'

'

'

«

•'

-

'

1

J

v

'

-

1

organization specializing in sporting goods,
photographic equipment, toys, wheel goods, luggage and
recreational lines. Office—1321 Main St., Kan¬
retail

a

related
sas
sas

City, Mo. Underwriter—Stern Brothers & Co., Kan¬
City, Mo.

^ General Boats Corp.
29, 1960 (letter of notification) 20,000 shares of
common stock (par 20 cents). Price—$5 per share.
Busi¬

July

ness—To manufacture cabin boats. Proceeds—For inven¬

tory; engineering, development and molds for a new
type craft and for working capital. Office—32 West 46th
Street, New York 36, N. Y. Underwriter—None.
•

General

July

Motors

(8/17)

Acceptance Corp.

$150,000,000 of 22-year debentures,
due 1982. Price—To be supplied by amendment. Proceeds
—For general funds, the purchase of accounts receiv¬
able, the reduction of indebtedness, and possibly for in¬

27,

short-term

in

Office—New

securities.

City. Underwriter—Morgan
City (managing).

Stanley

&

York

Co., New York

of the proceeds

will be used to open two new stores
Oregon and Idaho. Office — 1105 N. E. Broadway,
Portland, Ore. Underwriter — Fennekohl & Co., Inc.,
New York. Offering—Expected in late August.
in

General

Steel

Corp.
July 22, 1960 filed 296,649 shares of common stock (par
$1), of which 100,000 shares are to be offered for the
account of the issuing company and the balance, repre¬
senting outstanding stock, will be offered for the ac¬
Castings

count of the present

the

holders thereof. Price—To be related

market

price for the shares at the time of the
Proceeds—To be loaned to St. Louis Car Co., a

offering.
subsidiary. Office

1417

State

St., Granite City, 111.
Underwriter
Hornblower & Weeks, New York City
(managing). Offering—Expected sometime in September.
—

—

•

Goid

Medal

Harvest

Packing Corp.

June 17, 1960, filed 100,000 shares of 25c convertible
pre¬
ferred stock (par $4).
Price—At par. Proceeds—Ap¬

which certain inventories

are

indebtedness

Co.

as collateral. The
initially incurred on
June 15, 1960 in connection with refinancing the com¬
pany's obligations to a bank. In addition, $15,000 will

be

used

for

Jones

the

&

pledged
was

construction

of

additional

an

smoke¬

house, and the balance will be used for general corporate
Office—614 Broad Street, Utica, N. Y. Busi¬
ness—The company is engaged in the processing, pack¬
ing and distribution of meats and meat products, prin¬
purposes.

cipally sausage products, smoked meats, bacon, and meat
specialties. It also sells certain dairy products. Under¬
writer—Ernst Wells, Inc., 15 William Street, New York
City.
Greenbelt Consumer Services, Inc.
April 28 filed 40,000 shares of series A common
and 160,000 shares of series B common stock.

share.

stock

Proceeds—$400,000 will be used in payment

of bank loans made in

January to finance the purchase
equipment for two new supermarkets which are plan¬
ned to be opened in May and
June, 1960. Approximately
$200,000 will be used for the purchase of inventory for
of

the

two

stores.

new

The company

contemplates

open¬

ing four additional supermarkets within the next two
and one-half years.
Approximately $1,200,000 of the pro¬
of the offering will be used to finance the

ceeds

pur¬

chase of equipment and
inventory for such stores. The
balance of approximately $182,000 will be added to
gen¬
eral working capital. Office—10501 Rhode
Island Ave.,

Beltsville, Md. Underwriter—None.

-

mon

Manufacturing Co., Inc.
(letter of notification) 120,000 shares of

stock

Proceeds

(par

10

in

the

of

feed

cents).

For

Price

$2.50 per share.
equipment and working

offered, and the

of

are

Guardian

reserved

Discount

for the
Co.

Price—$6

per

share.

Avenue,

N. Reddoch & Co..

Memphis, Tenn.
•

Gulf-Tex

Development, Inc.

March 30 filed 250,000 shares of

common

stock. Price—

$5 per share. Proceeds—For purchase of Pelican
Island;
for improvements on said
property; and for working
capital and other general corporate
purposes, including
the general
development of the property. Office—714

Rosenberg St., Galveston, Tex. Underwriter—Myron A.
Lomasney & Co., New York. Note—This statement was

withdrawn

on

July 21.

Hailicrafters Co.

July 22, 1960 filed 300,000 shares of capital stock
(par
$1), of which 100,000 shares are to be offered for
the
account of the issuing
company and the balance, repre¬
senting outstanding stock, is to be offered for the ac-.
count of the present holders
thereof. Price—To be sup¬
plied by amendment. Business—The
research, develop¬
ment, and manufacture of military electronic
equip¬




primarily

automated plant, and for addi¬
Office — Pittsburgh, Kansas.
Underwriter—S. D. Fuller & Co., New York City. Offer¬
ing—Expected in mid-September.
■'■■■■ Ylong-term debt; for

tional

a new

capital.

working

Electric

-Hawaiian

Co., Ltd.

• i

,

r.

1960 filed 116,643 shares of common stock, to
be offered to holders of the outstanding common on the
July 25,
basis of
—To

one

new

share for each eight shares held. Price

be supplied by

amendment. Proceeds—For capital

expenditures. Office—900 Richards St., Honolulu, Hawaii.
Underwriter—None.

Hawaiian

Pacific

Industries, Inc.

June 29, 1960,

filed $1,350,000 of 6Yz% convertible sub¬
ordinated debentures, due September, 1970, and 100,000
shares of common stock. Price—Debentures, at 100% of
principal amount; common stock at a maximum of $10
per share. Proceeds — For construction expenses, new
Honolulu, Hawaii.
Under¬
writers—Bosworth, Sullivan & Co. and Lowell, Murphy
& Co., both of Denver, Colo. Offering—Expected in early
September.
—

Components Corp.
V
(letter of notification) .200,000 shares of
common stock (par 10 cents).r Price—$1 per share.
Pro¬
ceeds—For general corporate purposes.
Office — 89-25
Van Wyck Expressway, Jamaica 35, N. Y.Z Underwriter
—R, A. Holman & Co., Inc., New York, N. Y, Offering
—Expected sometime in September.-

29, 1960
stock

ceeds— For

Lewis
&

29, 1960,

Illinois Beef, L. &

W. S., Inc.
200,000 shares of outstanding common
Proceeds—To selling stockholders.
Price—$10

April
stock.
-

filed

29

Office—200 South Craig Street, Pittsburgh,
Co., Inc., New York,
and Bruno Lenchner, Inc., Pittsburgh, Pa. OfferingExpected sometime in September.
per

share.

Pa.

Underwriters—Amos Treat &

Trail

Indian
June

Ranch, Inc.

notes due 1965; 171,600 warrants to purchase the
said notes; and 57,200 common shares issuable upon con¬
version of the notes.
The company proposes to offer its
sory

stockholders

common

at the rate of
of

rights

to

subscribe to the notes

$5 principal amount of notes for each share

stock held. / Each stockholder is entitled

common

to

subscription right for each share- held; and three
rights are required to subscribe for one note in the
amount of $15, the minimum subscription.^ Business—
The company is authorized to engage in a general farm¬
ing and ranching business.
Proceeds —• To enable the
company to obtain the necessary funds required to meet
one

bank

with

commitments

financial

various

in

respect to

some

44,000 acres.

with

its

Office

—

Southern

Underwriter—None.

Blvd., West Palm Beach, Fla.
Industrial

connection

and .carrying charges

mortgage payments

loans,

Bank of Israel Limited

Development

July 22, 1960 filed 10,000,000 6% preference C shares.
Price—$1 per share, payable in cash or in Israel bonds.
Proceeds — For use as working capital to be used in
granting loans to firms judged beneficial to the Israel

D. C. and New York

(letter of notification) 100,000 shares of
Price—$3 per share. Pro¬

(par 10 cents).

general

of 6% convertible promis¬

28, 1960, filed $585,000

Office—413 Allenby Road, Tel-Aviv, Israel.
Underwriter—Harry E. Brager Associates, Washington,

Manufacturing Corp.

(8/29-9/2):.
common

'

economy.

Heldor Electronics

June

:.

(8/25)

•

June

equipment, reduction of indebtedness, and the acquisi¬
tion of properties. Office

Thursday,1 August 4, 1960

Precision

D.

corporate

purposes.

Office

—

238

Underwriter—S. Schramm

Street, Paterson, N. J.

Co., Inc., New York, N. Y.

^

Helicopters, Inc.
May 19 (letter of notification) 60,000 shares of common
stock (par $1).
Price — $5 per share. Proceeds — For
purchase of equipment, tools, inventory and working
capital. Office—Heliport, Stapleton Airfield, Denver 2,
Colo. Underwriter—Insurance Stocks, Inc., Denver, Colo.
Offering—Expected in late August or early September.

City. Offering—Expected sometime

in September.

^ Industrial Timer Corp. (9/6-9)
July 28, 1960 filed 75,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
- The manufacture and sale of timing
controls, relays,
and a recently developed actuating programmer.
Pro¬
ceeds—For general corporate purposes, including con¬
struction, additional, personnel, and the reduction of
indebtedness. Office—1407 McCarter Highway, Newark,
N.

J.

Underwriters

—

G.

H.

Walker

Co.

&

and

C.

E;

Unterberg, Towbin Co., both of N. Y. City (managing).
•

Infrared

(8/16)

Industries, Inc.

Honey Dew Food Stores, Inc. (8/22-26)
June 24, 1960 (letter of notification) $300,000 of !Yz%
convertible subordinated debentures due July 1, 1970.

July 6, 1960, filed 135,000 shares of common stock (with¬
out par value), 100,000 shares of which are for the com¬

Price

holders.

—

At

100%.

These

debentures

are

convertible

through June 30,1965 into capital stock at $2.50 per share
including June 30, 1962, at $3.33^3 per share from
July 1, 1962 to June 30, 1964 inclusive and at $4 per
to and

share from

July 1, 1964 to June 30, 1965 inclusive. Pro¬
Office — 811
Grange Rd., Teaneck, N. J. Underwriter — Vickers,
Christy & Co., Inc., 15 William St., New York 5, N. Y.

ceeds

—

For general corporate purposes.

Hyak Skiing Corp.
July 18, 1960 (letter of
—For general

corporate

ceeds—Approximately $700,000 will be used to construct
and equip the Santa Barbara, Calif, plant for which the
company has recently acquired acreage, $450,000 will be
used to discharge indebtedness of the company and a
subsidiary, and the balance will be used for general cor¬
porate purposes including working capital.
Business—
The company produces infrared detectors for most of the
infrared

notification)

stock. Price—At par

common

($10

purposes.

per

30,000 shares of
share). Proceeds

Office—c/o Frederick

Hydrocraft, Inc.
June 20,

1960

(letter of notification)

180,000 shares of

stock. Price—At par ($1 per share). Proceeds—
To purchase inventory, increase plant capacity by adding
additional molds and jigs, research and development and

for

working capital. Office—804 Lake St., Huntington
Beach, Calif. Underwriter—Wedbush & Co., Los Angeles,
p.

•

by

the
use

Armed
as

International

Diode Corp.

'

July 29, 1960 filed 42,000 shares of 6%
convertible

establish

staff

and

non-cumulative

(par

$8).

sells

diodes.

Price

—

$8

to

City.

Underwriter—Ernst Wells, Inc., New York

'4.■/vv-/"-'....

■

International Telephone

-

& Telegraph Corp.,

(8/8-12)

21, 1960, filed $10,000,000 of debentures due July,
Price—100% of principal amount. Proceeds—For
subsidiaries and general funds. Office—67 Broad
Street,
1977.

New York

City. Underwriter—Bear. Stearns & Co., New

by amendment. Proceeds—Approximately $490,000 will
be used to retire loans made to furnish working capital
and to finance the company's Hydro-T-Metal program,
and $300,000 will be used to retire a loan made to finance
the acquisition of a license to practice an electrothermal
process for the production of metals from oxides and
ores. The balance of such proceeds will be added to the
general funds of the company. Office — 405 Lexington
Ave., New York City. Underwriter—H. M. Byllesby &
Co., Inc., Chicago, 111.

York.

•

Inc.. and Riviere Marsh & Co., both of
Washington.

(8/22-26)

June 27,

1960, filed 130,000 shares of its common stock
(par 50 cents). Of the total, 50,000 shares are being
offered for the company's account and 80,000 shares by
certain stockholders. Price—To be supplied by amend¬
ment. Proceeds—For
ness

—

general corporate purposes. Biwiand marketing of materials

The manufacturing

handling equipment. Underwriter
New York,

per

Proceeds—To

of

production and sales engineers, fi¬
product development, buy equipment, and
working capital. Office—90 Forrest St., Jersey
a

City, N. J.
•

stock

new

nance

add

preferred

Business—Makes

June

June 16, 1960 filed $2,500,000 of convertible debentures
due 1972. The company proposes to offer the debentures
for subscription by stockholders. Price—To be supplied

Hyster Co.

well.

Office—Waltham, Mass. Underwriter—Lehman Brothers,

Sud America

(8/10)

procurement

New York City.

-v

Hydrcmetals, Inc.

under

systems

Forces of the United States and for civilian

share.

common

Calif..

and the balance for the account of certain stock¬
Price—To be supplied by amendment.
Pro¬

pany

re¬

acquisition of the

Proceeds—From the public
offering, to be invested in
Guardian Discount
Co.
Office—1415
Union

Memphis, Tenn. Underwriter—James

engaged

by

formulation, manufacture, distribution, and sale
supplements, minerals, and pre-mixes for the
livestock industry in the mid-west. Proceeds—To retire

—

Guardian Central Trust, Inc.
shares of common stock, of which
200,000 shares are to be publicly

maining shares

supplied

com¬

June 3 filed 484,862

stock

Business—The issuer is

be

Voorhees, 8422 N. E. 10th St., Bellevue, Wash. Un¬
derwriter—Columbia-Cascade Corp., Seattle, Wash.

advertising,
capital. Office—c/o Joseph J. Gross, 2411 Sunnybrook
Road, Richmond, Va. Underwriter—Maryland Securities
Co., Inc., Baltimore, Md.
—

I.

\

Price —/To

thereof.

.

shares of common stock (par $l)t
Price—$2.50 per 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,

D.

Gross Furnace
March 30

:••!/

.

•

Price—$10

per

holders

present

proximately $150,000 will be used to discharge that
portion of its obligation to Jones & Co. pursuant to
to

Brand, Inc.

I C Inc.

.

June 29 filea buu,000

Colo.

July 22, 1960 filed 191,667 shares of common stock (10c
par), of which 150,000 shares will be sold for the account
of the issuing company and 41,667 shares, representing
outstanding stock, will be sold for the account of the
amendment.

General Sales Corp.
April 28 filed 90,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
and facilities for the Portland Discount Center; $75,000
for the same purposes in the Salem Center; and $50,000
to provide working capital for General Sales Acceptance
Corp. for credit sales to member customers.
The bal¬

to

Harcourt, Brace & Co., Inc. (8/17)
1960, filed 493,425 outstanding shares of com¬
stock. Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders. Business—The company
is engaged in the publication and sale of junior high
school, high school and college textbooks, workbooks,
related materials, as well as general trade books. Office
—750 Third Avenue, New York.
Underwriter—White,
Weld & Co., New York.
June 28,

mon

1960 filed

vestment

ance

ment, and the commercial manufacture and sale of short-/
wave sending
and receiving equipment. Proceeds—For
working capital, including the reduction of indebtedness
by $1,000,000. Office—4401 W. Fifth Ave., Chicago,, 111.
Underwriter—Paine, Webber, Jackson & Curtis (manag¬
ing). Offering—Expected in early September.

•.

—

Blyth & Co., Inc.,

Investor Service Fund, Inc.
July 14, 1960, filed 100,000 shares of common stock,
Price—$10 per share, in 100-share units. Business—The
company, which has not as yet commenced operations,

intends

to

diversified
all

or

part

offer

investors

a

chance

real estate ventures.

of

the

to participate in
Proceeds—To purchase

Falls Plaza

Shopping Center, Falls
Church, Va. Office—1823 Jefferson Place, N. W., Wash¬
ington, D. C. Underwriters—Investors Service Securities,
• Itemco, Inc.
(8/29-9/2)
April 29 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceds—For repayment of outstanding
debt, for instrumentation and automation of laboratory
equipment, for expansion of existing manufacturing fa¬

cilities and the acquisition or establishment of additional
facilities, and the balance for working capital. Office—
18 Beechwood

Avenue, Port Washington, N. Y.

Under-

Volume .192

v

ftfumber

5974

.

.

.The Commercial and Financial
Chronicle

(485)
writers—Morris Cohon &
Company and Schrijver & Co.,
both of New'York.
'
'
' "
Kent

July

velopment; and the balance will be added to working
capital.

Office—Renovo, Pa.
ington Corp., Pittsburgh, Pa.

Publishing Co., Inc.

20,

I960

common

stock

To retire

a

(letter

of

50,000

shares

of

Louisiana Gas Service Co.
'•
June 10, 1960, filed 670,000 shares of common stock
(par
$10) to be issued by Louisiana Power & Light Co. to
•

$1). Price—$1.10 per share. Proceeds
short term note and for
general corporate

Office-619

purposes
N.C.

notification)

(par

Southeastern

Underwriter—McCarley

Bldg, Greensboro,
& Co., Inc., Asheville, N.c!

•

Kings Electronics Co., Inc.
(8/8-12)
May 26 filed 200,000 shares of common
stock
cents)

and

100,000

common

stock

purchase

(par

10

and

by

infra-red

instrumentation,

search

the

in

design,

a

subsidiary in the field

$100,000

development

for

continued

and

production

of

components for microwave instruments, and the
balance
Office-^40 Marbledale Road, Tuckahoe, N. Y.
Underwriters
Ross, Lyon & Co., Inc.;
Globus, Inc.; Reich & Co.; Harold C. Shore & Co. and

Proceeds—$2,100,000 will
indebtedness, and the balance will be

—

capital and

general

corporate

be used to reduce
used for

working

Office—Holly¬

purposes.

it KoLmorgen Corp. 7

'City.,,

July 29, 1960 filed 80,330 shares of common stock
(par
$2.50) of which 35,000 shares are to be offered for the

Majestic Utilities Corp. (8/25)
April 29 filed $800,000 of 6% convertible 10-year de¬
bentures, $250 face value, 30,000 shares of common stock,
and options to
purchase an additional 30,000 shares.
It

account of the

-

issuing company and 45,330
shares, repre¬
senting outstanding stock, are to be Offered for the ac¬
count of the present holder thereof.
Price—To be sup¬
plied by amendment. Business—The company makes
op¬
tical equipment, including submarine
periscopes, torque
motors, and other electro
mechanical and electronic
equipment. Proceeds—To redeem all of the
outstanding
7% cumulative preferred; for bank debt
reduction; to
repay outstanding first mortgage
note; for machinery
and equipment; to pay a
promissory note; and for work¬
ing capital. Office — 347 King St.,
Northampton, Mass.
Underwriter—Putnam & Co.,
Hartford, Conn, (manag¬
ing.) Offering—Expected in early October.

June

Leadville Water CoJune 28, 1960 (letter of

offered to holders of the
outstanding common at the rate
of one new share for each three shares held.

6% series A first mortgage coupon bonds to be offered
in denominations of $1,000. Price—At
par. Proceeds—
For a mortgage
payment, outstanding notes, construction

per share.

is proposed to offer these securities for
public sale in
units (1,200), each
consisting of

$250 face amount of de¬

bentures,

water

new

supply and general corporate

Office—719 Harrison

Lee Electronics

purposes.

expand

Inc.

operations.

.

Office—3628
—

Atlantic

York

Rhawn

St.,
Equities Co.,

$1).

Lence

i

•

Under¬

®

unit. Proceeds—

29,

class

A

1960

a

new

\

(letter of notification) 150,000 shares of
stock (par $1). Price—$2 per share.

common

loans, purchase

new

machinery, open

office and for

working capital. Office—1850 N. E.
St., North Miami, Fla. Underwriter — Plymouth
Bond & Share Corp., Miami, Fla.
144th

American-Swedish

the filing of $15,-

proceeds

Sons, Baltimore,

Ltd.

Mich.

are

received.

Underwriter—To

Office—1365
be

Cass

determined

Ave., Detroit,

by

competitive

bidding. Probable -bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids—Expected to be received
at room 2315, 195 Broadway, New York City, up to 11
a.m. New York Time on Aug. 16.

The

$500
15 shares of capital stock. Price—For
units, to be supplied by amendment, and not to be in
excess of par. Proceeds—To make loans to Lamco. Office
—97 Queen St., Charlottetown, Prince Edward
Island,
Canada, N. $
Underwriter—White, Weld & Co., Inc.,
of debentures and

Midwest Technical Development Corp.
May 17 filed 561,500 shares of common stock being of¬
fered to holders of the outstanding common on a onefor-one basis with rights to expire on Aug. 9. Price—
$4.75 per share. Proceeds—For general corporate pur¬

This offering has temporarily been

Office—Minneapolis, Minn. Underwriters—ShearHammill & Co., New York City, and Piper, Jaffray
Hopwood, Minneapolis.

poses.

postponed.

son,

Lifetime Pools Equipment Corp.
July 1, 1960, filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business—Engaged in
the manufacture and selling of fiber glass
swimming

&

Miles-Samuelson. Inc.

(8/22-26)

June 22, 1960 filed 100,000 shares of common stock

$1). Price—To be supplied

pools.

(par
by amendment. Proceeds—

Proceeds—$125,000 will be used to purchase ma¬
For reduction of indebtedness, expansion of the business
chinery and' equipment* '$200,000 to purchase
raw
and general corporate purposes. Business—The
company
materials, parts and, components; $40,000 for sales and •v-is engaged in writing, illustrating and producing a

,

advertising v-promoUpn;^$30^p,for engineering and, de¬



'W'

^

Price—To

be

one

share

new

(par
com¬

for

six

each

supplied by amendment.

shares

Business—

Making and selling electronic equipment and systems for

for product

of

expansion, $200,000;
The balance will be

development, $125,000.

working capital.

as

Office—7620 N. W.

Miami, Fla. Underwriter
New York

36th Ave.,
Shearson, Hammill & Co.,

—

City.

Missiie-Tronics, Corp.
July

1960,

8,

(letter

stock

common

Proceeds—For

(par

of
10

notification)
cents).

200,000

Price—$1.50

general corporate purposes.

shares

of

share.

per

Office—245

4th
&

Street, Passaic, N. J. Underwriter—Edward H. Stern
Co., Inc., 32 Broadway, New York, N. Y. Offering—

Expected in late August

early September.

or

Missouri Public Service Co.

(9/20)

Aug. 1, 1960 filed 258,558 shares of
$1) to be offered to the holders
common

the

on

basis

of

ceeds—To

reduce

1959-60 for

new

short-term

construction

common

of

the

share

stock

(par

outstanding

for

each eight
supplied by amendment. Pro¬

one

shares held. Price—To be

bank

loans

incurred

in

Office—Kansas

City,
Mo. Underwriters
Merrill Lynch/ Pierce, Fenner &
Smith Inc., and
Kidder, Peabody & Co., both of New
York City (managing).
expenses.

—

Model Finance Service, Inc.
I
100,000 shares of second

May 26 filed

cumulative

pre¬

ferred stock—65c convertible

series, $5 par—and $1,000,000 of 6^% junior subordinated
debentures, due 1975.
Price—To be supplied by amendment. Proceeds—To be
added to the company's general working funds. Office—
202 Dwight Building, Jackson, Mich. Underwriter—Paul
C. Kimball & Co., Chicago, 111. o

i( Mohawk Busine&s Machines Corp.
July 28, 1960 (letter of notiifcation) 2,500 shares of
common stock
(par 40 cents). Price — At-the-market.
Business—To manufacture and sell magnetic recorders.
Proceeds—For general corporate purposes. Office—944

Halsey St., Brooklyn, N. Y. Underwriter—None. Offering
—Expected in the Fall.

Mustang Lubricant, Inc.
May 9 filed 80,000 shares of

Price—$5

share.

per

class

A

stock.

common

Proceeds—For

Office—Denver,

purposes.

general corporate
Underwriter—To be

Colo.

.variety of technical material specifically

•

Namm-Loeser's Inc.

April 27 filed 217,278 shares of common stock (par $1)
all of which is being offered for subscription. The com¬
pany is offering 108,000 shares of new common stock
for
subscription by holders of outstanding stock of
record Aug. 4, at the rate of one new share for each
three

shares

held

with rights to expire on Aug. 19 at
Arebec Corp., of New York, which owns
109,278 common shares, has entered into an agreement
to sell said shares to the underwriter. Price—$7.75
per

share. Proceeds—To be added to company's general funds
and will enable it to use all or part of the
proceeds in
the reduction of bank indebtedness. Office-r-2301
ward

designed for

Ave.,

Detroit,

Mich.

Underwriter

Thalmann & Co., New York.
•

Wood¬

Ladenburg,

—

-

■

Narragansett Capital

June

21, 1960, filed
(par $1). Price—$11
Office—10

ment.

Business—This
investment
and

to

Corp. (9/6-9)
1,000,000 shares of common
Proceeds—For

share.

per

Dorrance

Street,

non-diversified

stock

invest¬

Providence,

closed-end

R,

I.

management

intends to provide equity capital
long-term loans as contemplated by the

company

make

Small

Business

Investment Act

group

of small

business

of

1958

concerns.

to

a

diversified

Underwriter—G.

H.

Walker & Co., New York.

National

Capital Corp. (8/22-26)
filed 240,000 shares of class A common
stock (par $1). Price—$5 per share. Proceeds—For re¬
duction of indebtedness, working capital, and general
June

Awning Mfg. Co., Inc.

Michigan Bell Telephone Co. (8/16)
July 25, 1960 filed $35,000,000 of debentures, due Aug. 1,
1996. Proceeds—To repay advances from American Tele¬
phone & Telegraph Co., the parent company, which are
expected to approximate $32,000,000 at the time such

shares of Lio capital stock, to be offered in units.
units will consist of $500 of collateral trust
bonds,

—

June

Proceeds—To retire

000,000 of 6%% first lien collateral trust bonds, series A,
due 1980, of Lio, $15,000,000 of 6J/4% subordinated de¬
bentures due 1985 of Lio, an unspecified number of

New York. Note

;
_

'

Ore

,

Miami Ventilated

—

Iron

reduce

Chicago, 111.

Company's principal products are Lestoil and Lestare.
Underwriters
Paine, Webber, Jackson & Curtis, New
York and Boston, and Alex. Brown &

19 joined with The Liberian
Minerals Co., Monrovia, Liberia, in

&

temporary bank loans, $125,000 to reduce
payable, $40,000 to establish a new office and
warehouse in Jacksonville, Fla.,
and the balance for
general corporate purposes. Office—6454 N. E. 4th Ave.,
Miami, Fla. Underwriter — Floyd D. Cerf Jr. Co., Inc.,

discharge certain indebtedness, and the balance will

Liberian

(8/8-12)

accounts

be added to working capital and be available for
general
corporate purposes. Office—Holyoke,; Mass. Business—

May

Tile

basis of

3:30 p.m. EDT.

8 filed

000 to

Lestoil Products, Inc. (8/15)
June 17, 1960 filed 275,000 shares of class A stock and
275,000 shares of common stock (par $1), to be offered
for public sale in
units, each consisting of one class A

Md. and New York.

capacity, Part of the

Terrazzo, Inc. (8/17)
March 11, filed 125,000 shares of common stock (par $1).
Price—$3.50 per share. Proceeds—Approximately $100,-

•

To

29,

Miami

the

on

supplied by amendment.

1,000,000 shares of capital stock. Price—To
complete pay¬
ments on the company's property, for repayment of
loans, and the balance to be added to the general funds
for construction purposes and acquisitions. Office-—Los
Angeles, Calif. Underwriters—William R. Staats & Co.,
of Los Angeles, Calif., and Bache & Co. and
Shearson,
Hammill & Co., both of New York City.

pected sometime in September.

per

(managing).

be supplied by amendment. Proceeds—To

centers, associated ventures such
restaurants, bars, and luncheonettes, sells supplies,
and rent lockers,
shoes, and meeting rooms. Proceeds
—To reduce
indebtedness, complete Garfield Lanes in
Jersey City, N. J., and for working capital. Office—4650
Broadway, New York City. Underwriter—Marron, Sloss
<& Co.,
Inc., New York City (managing). Offering—Ex¬

Price—$15

ex¬

Office—Miami, Fla. Underwriter—None.

Metropolitan Development Corp.

June

as

share.

modernization

Byllesby and Co. Inc., both of Chicago, 111.

Lanes/ Inc.

common

For plant and

business and to increase borrowing

ates automatic bowling

one

—

proceeds may be used temporarily to reduce bank bor¬
rowings. Underwriters—Rodman & Renshaw and H. M.

July 22, 1960 filed 175,000 shares of common stock (par
$1). Price—$6 per share. Business—The company oper¬

and

stock, to

Discount Corp., Chicago, III.
1960, filed 128,000 shares of common stock.
be supplied by amendment. Proceeds—To be
added to the capital fund to allow for the expansion^ of

discharge bank loans, the proceeds
of which were used to
provide additional working capi¬
tal and to discharge other short-term
indebtedness;
$100,000 for construction and purchase of additional
tools, dies and machinery and additions to raw material
inventory; and the balance for general corporate pur¬
Office—191 Talmadge Road, Edison, N. J.
writer—Myron A. Lomasney & Co., New York.

common

Price—To

to

poses.

Proceeds

City

June

Corp. (8/8) '
17, 1960, filed 110,000 shares of capital stock (par
Price—$8.75 per share.
Proceeds—About $250,-

000 will be used

to

Mercantile

Lee Filter

June

options

—

(letter of notification) 135,000 shares of
stock (par 10 cents).
Price—$2 per share. Pro¬

ceeds—To

and

it McKesson & Bobbins, Inc. (8/22-26)
July 28, 1960 filed $15,000,000 of debentures, due Sept. 1,
1980.
Proceeds
To retire short-term
borrowings, to
finance the proposed acquisition of an interest in
corpo¬
rations operating in South
America, and to increase
working capital. Office—155 East 44th St., New York
17, N. Y. Underwriter — Goldman, Sachs & Co., New

Ave., Leadville, Colo. Underwriter

Philadelphia, Pa. Underwriter
Washington, D. C.

Industries, Inc.
15, 1960, filed 254,322 shares of

penses.

14, 1960

common

stock,

Price—$7

—H. M. Payson & Co., Portland, Me.
June

common

Maule

notification) $220,000 of 20-year

a

of

to purchase an additional 25 common
shares.
Price—
$350 per unit. Proceeds—To be applied in part payment
of a $250,310 bank loan and the balance to be added to
working capital and used for general corporate pur¬
poses. Office — 1111 Stout Street, Denver, Colo.
Under¬
writer—Purvis & Company, Denver, Colo.

-

of

shares

25

mon

used

wood, Calif. Underwriters—William R. Staats &
Co., Los
Angeles, Calif., and Shearson, Hammill & Co., New York

Godfrey, Hamilton, Magnus & Co., all of New York
City.

1

Power & Light Co. Underwriter—None.

amendment.

for working capital.

it Milgo Electronic Corp. (9/6-9)
July 28, 1960 filed 65,000 shares of common stock
$1), to be offered to the holders of the outstanding

missile and space programs. Proceeds—For reduction
short-term bank loans,
$635,000; for

Lyfton Financial Corp. (9/6-9)
July 26, 1960 filed 354,000 shares of capital
stock, of
which 187,500 shares are to be offered for
the account
of the issuing
company and 166,500 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof.
Price—To be supplied! by

re¬

by industry and the Department of Defense. Office—
St., New York City. Underwriter—Marron,

East 26th

Sloss & Co.,, Inc. of New York
City.

(with an additional subscription privilege); rights begin
August and expire in September. Price—To be sup¬
plied by amendment. Proceeds—All to be paid to Louisi¬
•

of

21

held.

ana

$75,000 for develop¬

design work

use

stockholders of Middle South Utilities, Inc., on the basis
of one share of Louisiana Gas
Service Co. common stock
for each 25 shares of common stock
of Middle South held
in

warrants.

The company proposes to offer
these securities for public
sale in units, each
consisting of one share of common
stock and one-half common
stock purchase warrant.
Price
$4 per unit.
Proceeds—$165,000 will be applied
to the repayment of certain
loans,
ment

Underwriter—First Penn¬

33

9,

1960,

corporate

purposes. Office — 350 Lincoln Road, Miami
Beach, Fla. Underwriters—J. A. Winston & Co., Inc., and
Netherlands Securities Co., Inc., both of New York City.

National Consolidated Development Corp.
July 25, 1960 filed 70,000 shares of class B common (non¬
voting) stock. Price-4-$100 per share. Business—To ac¬
quire business properties, and operate, lease, or sell
them for a profit. Proceeds—For general corporate pur¬
poses, with initial activities scheduled for Phoenix, Ariz.
Office—South 1403 Grand Ave., Spokane, Wash. Under¬
writer
The stock will be offered through authorized
and qualified brokers.
—

,

•

National Electronic Tube Corp.

•

National

(8/8-12)
April 29, 1960 filed 150,000 shares of common stock (par
5 cents). Price — $2 per share. Proceeds — For general
corporate purposes. Office—88 Cortlandt St., New York
City. Underwriter — Vickers, Christy & Co., Inc. and
First City Securities, Inc., both of New York City.
Fountain

Fair Corp.

(8/15-19)
75,000 shares of common
stock (par $1).
Price —$4 per share. Proceeds —For
general corporate purposes.
Office —- 3000 Hempstead
May 27 (letter of notification)

Turnpike, Levittown, L. I., N. Y. Underwriter—General
Investing Corp., New York, N. Y»
•

National Lawnservice Corp.

(letter of notification) 100,000 shares of.-comstock-(par one cent).; Price—$3 per share. Pro¬
ceeds—For general corporate purposes.
Office — 410
Jan.

11

mon

;

.V ..V

-

:

Continued

.on

page

34

34

Chronicle

The Commercial and Financial

(486)

.

.

1960

Thursday, August 4,

.

'

1 i1

,t

'

Continued from page 33
'

I

'

r

«,

'

.

(

•

.

'

.

,

1

1

Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y. Offering—In¬

be added to working capital for general corporate pur¬

warrants at

principally to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol, ;
R. I. Underwriter—R. A. Holman & Co., Inc., New York.

and after

price of $3.25

poses,

•
•

National

(8/29-9/2)

Development Corp.

Patent

1960, filed 150,000 shares of common stock (par
one
cent). Price—$1 per share. Proceeds—Net of this
gale in combination with cash on hand will be used to

and the
Office—68 Wil¬
— Globus, Inc.
Ross, Lyon & Co., both of New York City.
,/

finance the client and sales solicitation program,
balance for general corporate purposes.
liam St., New York City. Underwriters
and

Perkin-EImer

Underwriters—
Co. Inc.,

Business—Public utility.

Chicago, 111.

Dillon, Read & Co. Inc., and Halsey, Stuart &

Natural Gas Pipeline Co. of America (8/17)
July 1, 1960, filed 150,000 shares of cumulative preferred
stock (par $100).
Price—To be supplied by amendment.
Proceeds—To be applied in part to the payment of out¬
standing bank loans and the balance used for construc¬
tion requirements.
Office — 122 South Michigan Ave.,
Chicago, 111. Underwriter—Dillon, Read & Co. Inc., New
York. '•
,<
•

March 30 filed

one

103,452,615 shares of capital stock, to be
subscription by stockholders at the rate of
share for each 5V2 shares held. Price — To be

new

61,000

shares will be offered for
Price—To be sup¬

the issuing company.

plied by amendment. Office—1205 So. Plate River Drive,
Denver 23, Colo. Underwriters—Hayden, Stone & Co.
and Lowell, Murphy & Co. (jointly).
Needham

June

Packing Co.

(8/15)

1960, filed 200,000 shares of common stock.
Price—To be supplied by amendment. Proceeds—Toward
the payment of a $2,000,000 bank loan. Office — Sioux
City, Iowa. Underwriter — Cruttenden, Podesta & Co.,
Chicago.
28,

North American Merchandising Co.
ible

sinking fund debentures due July 1, 1965. Price—
amount.
Proceeds—To repay short-term loans

face

At

and for

Texas.

working capital. Office—118 Cole Street, Dallas,
Underwriter—Parker, Ford & Co., Inc., Dallas,

Texas. Offering—Imminent.

;

North

May

Washington Land Co.
filed $1,600,000 of first mortgage

3

participation

Price—The certificates will be

certificates.

discount of 17.18%

from face value.

offered at a

Proceeds—For the

of refinancing existing loans. Office—
1160 Rockville Pike, Rockville, Md.
Underwriter—In¬
vestor Service Securities, Inc.
primary

purpose

.Nuclear Engineering Co., Inc.
April 18 (letter of notification) 30,000 shares of common
stock (par 33.3 cents). Price—$10 per share. Proceeds
—To replace bank financing, reduce accounts payable,

purchase machinery and equipment and for working
capital. Office—65 Ray St., Pleasanton, Calif. Under^
writer—Pacific Investment Brokers, Inc., Seattle, Wash.
it Nucleonic Corp. of America
July 28, 1960 (letter of notification) 75,000 shares of
common stock (par 10 cents). Price—$4 per share. Busi¬

ness—Developing and manufacturing nuclear detection
instruments; equipment and accessories. Proceeds—For
advertising and increased direct mail; moving to a mod¬
ern one story plant
and leasehold improvements; addi¬
tional sales personnel and establishment of sales offices
in Los Angeles, Boston, Washington and Chicago and
for

N.

working capital. Office—196 DeGraw St., Brooklyn,
Y. Underwriters—Bertner Bros, and Earl Edden

New

Co.,

York, N. Y.

Pacific

it Pik-Quik,

Light Co.

July 27, 1960 filed $20,000,000 of 30-year first mortgage
bonds. Proceeds
To retire $20,000,000 of unsecured
promissory notes, to mature on or prior to July 31, 1961.
The notes will be used to partially finance the 1960-61
construction program, which is expected to total $61,000,000. Office — Portland, Ore. Underwriter —- To be
—

determined

by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Blyth & Co.
and White, Weld & Co. (jointly); Eastman
Dillon, Union
Securities & Co. Bids—Expected to be received
at 12 noon.

on

Sept.

21

The
in

Inc.

Thum."

under

There

Together with
to

are

31

now

funds,

other

such

markets.

be

Co., Inc.

Glendale, L. I., N. Y. Underwriter—Myron A. Lomas¬
ney & Co., New York City.
County

Canning Co.,

Inc.

March 25 filed

140,000 shares of common stock. Price—
$3 per share. Proceeds—About $162,000 will be applied
to the payment of certain
indebtedness; $25,000 for ad¬
ditional

working
52

machinery and equipment; and $118,752 for
capital, promotion and advertising.
Office—

Broadway,

Parks

&

New

York.

Underwriter

Co., Inc., New York. Offering

—

—

G.

Everett

Expected in

early August.
Pearson

(8/22-26)

March 30 filed 50,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—$60,000 will be

utilized
ness

to

repay

the

company's

indebtedness

to

Busi¬

Development Co. of Rhode Island; the balance will




development and construction of

homes.

Riviera Beach, Fla. Under¬
writers—D. Klapper Associates, Inc., and Norton Fox &
Office

used

2943

—

Broadway,

Offering—Imminent. £

Co., Inc., both of New York City.

Office—Baker Bldg., Minneap¬

•

Republic Ambassador Associates

South

Co., Inc., New York, N. Y. Note—The underwriter states
this offering will be delayed.

Aug.

June 14 (letter of

notification) 150,000 shares of

Price—$2

common

share. Proceeds—For

per

general corporate purposes. Office—Whitehead Avenue,
River, N. J. Underwriter—Pearson, Murphy &

it Republic Steel Corp. (8/30)
1, 1960 filed $125,000,000' of sinking fund deben¬
tures, due Sept. 1, 1985. Price — To be supplied by
amendment. Proceeds—For plant expenditures. Office—

that

it Possis Machine Corp.
July 25, 1960 (letter of notification) 40,000 shares of
common stock
(par 25 cents). Price — $7.50 per share.
Proceeds—To acquire new facilities, purchase additional /
equipment, reduce existing indebtednesss and for work¬
ing capital. Office — 1645 Hennepin Ave., Minneapolis,
Minn. Underwriter
Craig-Hallum,, Inc., Minneapolis,
Minn.

Cleveland, O. Underwriters — First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith, Inc., both of New
York City (managing).
Resiflex

•

Cat

Power

July

Coat

Corp

(8/10)

—The

Ultrasonics,

Inc.

Underwriter—

new

Provident Fund for

Dec. 23

•

filed

400,000 shares of common stock

•

dress.

Rico

•

Telephone Co.

1960, filed 100,000 shares of $20 par common
being offered for subscription by holders of its
outstanding common stock on the basis of one new share
for each five shares held of record July 27, with rights
to expire on Aug. 11. Price—$41 per share. Proceeds—
Together with other funds, will be added to the general/
funds of the company, which will be used in further¬
ance of a five year expansion and improvement program
initiated in 1959, and to repay indebtedness to banks
and ITT incurred for the purchase of materials
and
equipment used or to be used for said program. Office—
261
Tanca St., San Juan, Puerto Rico. Underwriter—

company

expenditures.

derwriter—Bache

Putnam
June

16,

class B

&

(J. L.)

1960

Office—New Haven, Conn.
Un¬
Co., New York City (managing).

Co., Inc.

(letter of
stock

notification)

50,000

shares of

$4 per share.
Proceeds
For general corporate purposes. Address—
Biddeford, Maine.
Underwriters — J. L. Brady & Co.,
Worcester, Mass. and David G. Means, Bangor, Maine.
common

(par $1). Price

Inc.

(8/8-12)

Underwriter—None.

Rochester

to

bank

repay

derwriter

Telephone Co. (9/21)

—

loans for construction

To

be

and extension

of

determined by competitive bidding.

Probable bidders: First Boston Corp., and

Halsey, Stuart
Inc.; Eastman Dillon, Union Securities & Co.; and
Kidder,- Peabody & Co. (jointly). Bids—Expected to be
received on Sept. 21, 1960, up to 11:00 a.m. New York
Time. Information Meeting—Scheduled for Sept. 19.
& Co.

.

Rocky Mountain Natural Gas Co., Inc.
due

and 50,000 shares, representing
outstanding stock, are to be offered for the account of
Joseph Stein, President, the present holder thereof.
Price—To be supplied by amendment. Business—Makes
and sells electronic air purifiers and range hoods.
Pro¬
ceeds— To retire indebtedness, with the balance for
capital

industries,

1960

29,

July 15, 1960, filed $2,350,000 of sinking fund debentures,

250,000 shares of common stock, of
which 200,000 shares are to be offered for the account

issuing

centers.

purooses.

facilities in service by the date of the proposed sale. Un¬

;■//,'/

it Puriton Corp.
Aug. 3, 1960 filed
the

corpora-e

July 21, 1960 filed $12,000,000 of series "E" first mort¬
gage bonds, which will mature in 33 years, on Sept. 1,
1993. Proceeds—The proceeds of this sale will be used

stock

;

bowling

of

operation

and

general

it River Read Publishing Co., Inc.
July 21, 1960 (letter of notification) 100,000 shares of
common stock (par $1).
Price—$2 per share. Proceeds—
To purchase machinery, equipment and supplies and for
working capital. Office—1004 S. 18th St., Baton Rouge,
La.

Puerto

7

—Vickers, Christy & Co., Inc. and First City Securities,
Inc., New York, N. Y....

Income, Inc.

(par $1).
supplied by amendment. Proceeds—For investment. Office—3 Penn Center Plaza, Philadelphia, Pa.
Underwriter—Provident Management Corp., same ad¬

'

(letter of notification) 150,000 shares of
common stock
(par $1). Price—$2 per share. Proceeds
—For a new product development and working capital.
Office—11801 Florida Ave., Tampa, Fla.
Underwriters

underwriter is to be named

Price—To be

Rez-Tile

June

Office—1240 First Security Building, Salt Lake

A

*

Inc.

Lincoln St.,

;

—

Chicago, 111.

Office—525
Worcester, Mass. Underwriters—Blair & Co.,
Inc., New York City and Chace, Whiteside & Winslow
Inc., Boston, Mass. (managing).

Proceeds—For

Progress Electronics Corp.
May 25 (letter of notification) 200,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—To
develop and produce proprietary items in the electron¬
City, Utah. Note
shortly.

Enterprises,

establishment

The

ing capital. Office — Roosevelt Field Industrial Park,
Garden City, L. I., N. Y. Business — Company develops
markets a variety of electrical and electronic prod¬

ics field.

Los Angeles, Calif. Underwriter

(9/19-23)
July 28, 1960 filed 200,000 shares of common *tock (par
$1). Price — To be supplied by amendment. Business—
Reva

and

ultrasonic principles.

working capital. Office—864

and

South Robertson Blvd..

retire three short-term notes, and the balance of approxi¬
mately $256,832 will be used to provide additional work¬

incorporating

facilities,

production

—Blunt Ellis & Simmons,

June 20, 1960 filed 205,000 shares
of common stock.
Price—$2 per share. Proceeds—$143,668 will be used to

ucts

sets.

donor

(8/5-10)

None.

and'*the assembling and marketing of blood
Proceeds — For plant expansion, increased

products,

,

Powertron

for. the ,account of the present holders
amendment. Business
manufacture and sale of disposable plastic tubular

thereof. Price—To be supplied by

Blvd., Paramount, Calif. Underwriter—Holton, Hender¬
son & Co.,, Los Angeles, Calif.
'
•

•

standing stock,

(letter of notification) 300,000 shares of
common stock
(no par). Price—$1 per share. Proceeds—
To discharge short term debts, working capital, plant
equipment, inventories, etc. Office—15623 S. Lake wood o
1960

5,

Inc.

Laboratory,

July 18, 1960, filed 100,000 shares of common stock, of
which 40,000 shares are to be offered for the account
of the issuing company, and 60,000 shares, being out¬

'

—

—

Corp.

,

(letter of notification) 75,000 shares of
(par 50 cents). Price—$4 per share. Pro¬

stock

ceeds—For the

Plastics & Fibers, Inc.

of

70-31 84th Street,

Inc., New York, N. Y.

Corp.

April 29 filed $10,000,000 of Limited Partnership In¬
terests, to be offered in units. Price—$10,000 per unit.
Proceeds—To purchase hotels in Chicago from a Webb
& Knapp subsidiary.
Office—111 West Monroe Street,
Chicago, 111.
Underwriter—Lee Higginson Corp., New
York.
Offering—Expected in mid-to-late August.

•

and development expenses.

—

furni¬

purposes. Office
Underwriter—Arden

St., New York, N. Y.

1960

1,

common

Proceeds—

the proceeds will

Rertmar

July

purchase substantially all of the assets of Plymouth

Rock Provision

None.

Office

•

outdoor and office types of
general corporate

Proceeds—For

Perin & Co.,

and operation of self-service markets
the names of "Pik-Quik" and "Tom

organization

Florida

Pacotronics, Inc. (8/15-19)
150,000 shares of common stock. Price—$4
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness and research

June 2 filed

Patrick

turer, specializing in
ture.

June 23,

(9/21)

'

•

ness—The company

July 27, 1960 filed 550,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—

•

Power &

•'

.

(par one cent). Price—$5 per share. Busi¬
is an integrated furniture manufac¬

class A stock

—

May 26 (letter of notification) $300,000 of 7% convert¬

'

Reilly-Wolff Associates, Inc. .(8/22) '/// . • v.///:
June 14, 1960 (letter of notification). 43,000 shares of

pected sometime in September.

stock (par 20 cents).

of

-

/

supplied by amendment. Proceeds—To be added to the
company's working capital. Office — Soriano Bldg.,
Manila, Philippines, Underwriter—None. Offering—Ex¬

holders

thereof, and

,

/,

Calif,

?

for

offered

olis, Minn. Underwriter—A. C. Allyn & Co., Inc;, New /
York City. Offering—Expected in mid-September.

account

*

,

Navajo Freight Lines, Inc. (8/9-12)
May 9, 1980, filed (with the ICC) 250,000 shares of com¬
mon
stock, of which 189,000 shares, being outstanding
stock, will be offered for the account of the present
the

■

for each warrant at a
The warrants were issued in

share.

per

—120 E. 32nd

both of New York.

,,

July 21, 1960 filed 100,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
—Imminent..
'
'/,///
■.'V'1
'/*
The company is engaged in the design, manufacture, and
• Rayson Craft Boat Co.
(8/5-15)
'
sale of scientific instruments. Proceeds—For plant con- ;;
July 11, 1960, (letter of notification) 100,000 shares of
struction ($1/400,000), machinery and equipment ($500,common stock
(no par). Price—$3 per share. Proceeds,
000), and general funds. Office — Main Ave., Norwalk, ■
—To purchase additional equipment, for sales, purchase
Conn. Underwriter—Blyth & Co., Inc., New York City
of inventory and working capital.
Address — Gardena,
(managing).
■*"'/!
/'V
Calif.
Underwriter—California Investors, Los Angeles,
Philippine Oil Development Co., Inc.
.

Co. of America (8/17)
July 1, 1960, filed $25,000,000 of first mortgage pipeline
bonds, due 1980. Price—To be supplied by amendment,.
Proceeds—To be applied in part to the payment of out¬
standing bank loans and the balance used for construc¬
tion requirements.
Office — 122 South Michigan Ave.,
Natural Gas Pipeline

(9/15)

Corp.

■

May, 1954, in connection with a previous pub¬
lic offering and included 46,001) to the underwriter, S.
D. Fuller & Co., and 46,000 to the company's officers
and employees.
At present there are 89,675 warrants
outstanding. Office—52 Broadway, New York. Offering

definite.

June 8,

'

the rate of one share

Pyramid Electric Co.
April 1 filed 89,675 shares of common stock to be issued
to holders of the company's outstanding stock purchase

?

1980, and 235,000 shares of common stock (par $3)
in units consisting of a $50 debenture and

to be offered
an

unannounced

number

of

common

shares.

Price—To

be

supplied by amendment. Proceeds—For construction
expenditures and the reduction of indebtedness. Office—
1726 Champa St., Denver, Colo. Underwriter — Merrill
Lynch, Pierce, Fenner & Smith Inc. (managing)/Offer¬
ing—Expected in late September.
Roliton

Corp. (8/10)
(letter of notification) 175,000 shares of
common stock (par 50 cents).
Price—$1 per share. Pro¬
ceeds—For training, advertising, salaries and fees, travel

June

28,

1960,

expenses
and working capital.
Office —1600 Ogden
Street, Denver, Colo. Underwriter—Copley & Co., Colo¬
rado

Springs, Colo.

Roller

Derby TV, Inc.

March 30 filed 277,000 shares of

117,000 shares

are

to

be

common

offered

for

stock, of which

public sale by the

issuing company, and the remaining 145,000 shares will
be

sold

for the

account

of

certain

selling stockholders.

Volume 192

Number 5974

.

.

The Commercial and Financial
Chronicle

.

(487)
Price—To

be

supplied

Proceeds—For
Sottile, Inc. (Formerly South Dade Farms, Inc.)
general corporate purposes relating to the production
July 29 filed 2,000,00U snares oi common stock (par
$lj,
and sales of motion picture films of the
Roller Derby, V. of which
1,543,000 shares are to be issued and sold for
and the balance for working capital.
Office—4435 Wood- o
the account of the
company, and

ley Ave., Encino, Calif. Underwriter—To be
supplied by
amendment.* r
'■> Rollins

Broadcasting Inc.

July 22, 1960 filed 110,000 shares of common stock
(par
$1), of which 75,000 shares will be sold for the account
of the issuing company and
35,000 shares, representing
outstanding stock, will be sold for the account of John

i',/
'

;</.*>;•

Corp.

(8/22-26)

stock

outstanding

(par 10 cents) and 30,000
It

common

stock pur¬

working capital.

unimproved real property, to sell parcels
building sites, to subdivide and improve parcels and
same
as
building sites, and to obtain or prepare
building plans and financing arrangements in respect

of New York.

Safticraft Corp., Patterson,
April 29 filed 275,000 shares of

cents).

Price—$3

per

share.

La.

stock

common

Proceeds—The

(par 10
company

proposes to

of

use $50,000 to expand its efforts in the sale
Safticraft boats nationally; $250,000 for reduction of

Storm

Underwriter

—

George,

O'Neill

&

New York.
•

Co.,

Inc.,

debenture

Saucon Development Corp.

April 28 (letter of notification)
ber of shares of

common

stock

Office

undetermined

an

(par $ 1)

not to exceed

—Los

Underwriter—Pistell, Crow Inc., of New York City, for¬

&

merly Pistell, Schroeder & Co.
•

July

15,

1960

J

(8/15-19)

(letter

of

notification) 100,000 shares of
common stock (par one cent). Price—$1
per share. Pro¬
ceeds—For general corporate purposes. Office — 330
Wagaraw Rd., Hawthorne, N. J. Underwriters—Bertner
Bros, and Earl Edden Co., New York, N. Y.

Softol,
June

17,

Inc.

(8/10-15)

/

,

x

1960

(letter of notification) 150,000 shares of
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds
For general corporate purposes. Office — 992
Springfield Ave., Irvington, N. J. Business—The company
manufactures cosmetics and toiletry items. Underwriter
—Harwyn Securities, Inc., 1457 Broadway, New York
36, N. Y.
—

Sonex, Inc.
June 29,

1960

common

stock

(letter of notification) 100,000 shares of
(par 25 cents). Price—$3 per share. Pro¬
ceeds—For machinery, cost of moving and leasehold im¬
provements and working capital. Office—185 W. Schoolhouse Lane, Philadelphia 44, Pa. Underwriter — Hess,
Grant & Remington,

Inc., Philadelphia, Pa.




the

Divide, about 2
Underwriter—None.

miles

from

outlet.
retail

»

Business—Wholesale and retail distribution of
electronics parts and components. Office—236-246

Street, New York. Underwriters—J. A,. Winston
Co., Inc. and Netherlands Securities Co., Inc., both

&

of New York.

Note—Name is to be changed to Terminalupon effectiveness of a merger
with Hudson Radio & TV
Corp., which will take place

of New York

City; Mitchum, Jones & Templeton
of Los Angeles,
Calif., and Schweickart & Co., of New
York City.
•
Sunbury Milk Products Co.
June

20,

1960

(letter of

20,000

shares

of

—To

System Meat Co.

(8/15)

share.

150,000 shares of common stock. Price—$5
Proceeds —For payment of employees' sal¬
mortgage installment, accrued officers' sal¬

aries, first
aries, and the balance for working capital. Office —
Newcastle, Wyo. Underwriter—Purvis & Co., Denver,
Colo.

'

if Technical

Corp.

July 29, 1960 filed 120.000 shares of common stock (par
20 cents). Price — $5 per share. Business —
Makes, and
sells
electronic equipment,
digital computers. Proceeds

principally
For

multi-channel

debt

reduction, re¬
search and development, engineering equipment and fix¬
tures, and working capital. Office—441 Washington Ave.,
North Haven, Conn.
Underwriter—Pistell, Crow, Inc.,
New York City.
Techno

—

shares

offered

Fund, Inc. (8/15)
June 24, 1960, filed 400,000 shares of common stock. Price
—$12.50 per share. Proceeds—For investment. Office—

hereby

are

sold.

Three-L-Corp.
24 filed 3,500,000 shares of common stock. Price
per share.
Proceeds—$46,098 will be applied to
the acquisition of 493 acreas of land in Fairfield Town¬
ship, Hyde County, and $15,000 for payment of the
July instalment on acquisition of about 12,726 acres in
Hyde County; $500,000 for purchase and installation of
machinery, equipment and saw mill and $75,000 for
working capital in connection with lumber operations;
$65,000 for January 1961 instalment payment on the
12,726 acres; and the balance to purchase livestock,
planting feed and pasture, raising livestock, and addi¬
tional working capital. Office—Fairfield, N. C. Underwriter—Participating dealers will receive 15 cents per
March

share.

:v

Timely Clothes, Inc.
July 25, I960 filed $840,000 of convertible subordinated
debentures, due 1980, to be offered to the holders of
the outstanding common on the basis of $100 principal
of

amount

debentures for

held. The record

by

amendment.

clothes,

date and

Business

and

each

16%

the

balance

Ave.
&

for

shares of

common

interest rate will be supplied
—
The firm makes and sells

operates,

through

10 retail stores. Proceeds—To reduce

two subsidiaries,
indebtedness, with

working capital. Office

—

1415

Clinton

North,

Rochester, N. Y. Underwriter—Cartwright
Parmelee, New York City (managing). Offering—Ex¬

pected in September,

:

-

Townsend Investment Co., Inc.
June 20, 1960 (letter of notification) $300,000 of 6% first
mortgage bonds and 3,000 shares of common stock (par
and

10 shares of

common

one

$1,000 bond

stock.: Price—$1,000 per unit.

Proceeds—To pay off a present mortgage and for work¬

ing capital. Address

—

P.

O. Box 68, Townsend,

Tenn.

Underwriter—Davidson & Co., Inc., Knoxville, Tenn.
•

Trans-Coast Investment Co.

(8/17)

1960, filed 400,000 shares of common stock.
Price—To be supplied by amendment. Proceeds—From
the sale of an unspecified number of the shares, for sell¬
ing stockholders; from the sale of the remainder, for the
operation of the Trans-Coast Insurance Agency. ; Office

22,

—210 W. 7th
man

Measurement

the

—$1

June

June 2 filed
per

of

Eastern

$5) to be offered in units consisting of

notification)

stock

(par $5). Price—$15 per share. Proceeds
liquidate short-term bank loans and for working
capital. Office—178 Lenker Ave., Sunbury, Pa.
Under¬
writer—Hecker & Co.,
Philadelphia, Pa.
common

when all

Office—Houston, Texas. Underwriter—Dillon, Read &
Co., Inc., New York City.

men's

Angeles, Calif. Underwriters—Federman, Stonehill

Co.

Electronics, Inc.

Transmission Corp. (8/10)
>
April 11 filed $25,000,000 of debentures, due 1980. Price
—To be supplied by amendment. Proceeds—For the re¬
duction of indebtedness and for construction
expenses.

'

,

Miller; $100,000 to

17th

Steamboat

.

Price—$2
per share. Proceeds—For working capital. Office—PanAmerican Bank Bldg., Miami, Fla. Underwriter—John R.
Maher Associates, of New York,

of Frank

repay a bank loan;
general corporate purposes, includ¬
ing the obtaining and equipping of an additional retail

consisting of a $50
Price—$75 per unit.
development of the resort.

Strolee of California Inc.

common stock
(par 10
cents). Price—$4.50 per share. Proceeds—For working
capital.
Office — 2202 Main Street, Jacksonville.
Fla.

stock.

Estate

and the balance for

Expected

July 19, 1960, filed 150,000 shares of outstanding com¬
mon stock. Price—$5 per share. Business—The manufac¬
ture of strollers, high chairs and other similar
types of
juvenile items. Proceeds—To selling stockholders. Office

Sav-A-Stop, Inc. (8/8-12)
May 27 filed 100,000 shares of

Sealed Air Corp.

pursue

Filler, President.

per share. Proceeds—$190,000 is to be used to
the remaining balance of its obligation incurred in
connection with the purchase of Terminal stock from the

—

Springs.

•

rities & Co., New York, N. Y.

pay

shares of stock.

Continental

mining expenses. Office — c/o Wallace F. McQuade, Pres., 246 Beaconsfield Blvd., Beaconsfield, Que¬
bec, Canada. Underwriter—To be named.

V

To

general

Price—$6

was

$300,000. Price—To be supplied by amendment. Proceeds

•

10

v

of
(par 25 cents). Price—$5 per share. Pro¬
corporate purposes. Office—7 East "
42nd St., New York
17, N. Y. Underwriter—Equity Secu¬
ceeds—For

the balance for the account of William

Steamboat Springs, Colo. Business —
Company
organized for the purpose of developing and oper¬
ating a ski and summer resort on Storm Mountain on the

num¬

—For

Sea-Highways, Inc. (8/8-12)
May 9 filed 150.000 shares of common

and
—

Co., Los Angeles, Calif.:;

Electronics, Inc. (8/15-19)
1960, filed 166,668 shares of capital stock (par
cents), of which 83,334 shares are to be offered fpr
public sale for the account of the issuing company and

Mountain Ski Corp.

Proceeds

«

Under- /

25

June 30, 1960, filed $500,000 of 8% subordinated deben¬
tures due 1975 and 100,000 shares of common
stock, to
be offered for public sale in units

and receivables incident to the increased
sales volume of

Dupont.

Calif.

Terminal

4

—

&

stock

common

and

Co., Inc., Dallas, Texas. Offering

Melrose Ave., Hollywood,

Telephone & Electronics Corp. (8/15-19)
June 14, 1960 (letter of
notification) 52,980 shares

Texas

&

7922

June 24,

mid-to-late August.

borrowings; and the remaining $293,500 to
be advanced to du
Pont, Inc. as additional working cap¬
ital necessary in the
financing of increased inventories

—

•

Pierce

short-term

Office

:

to be offered

Broadway, New York City.

Price—To be supplied by amendment.
Proceeds—To
■supply funds for working capital. Office—205 West 9th
St., Austin, Tex. Business—The company is engaged in
the printing and publishing business and in the sale of
office supplies and equipment. Underwriter—Rauscher.

(8/9)

(letter of notification) 150,000 shares of
stock (par 25 cents) of which 100,000
by officers. Price—$2 per share.
Proceeds—To lease equipment and for
working capital.
are

—
Pan American Bank Building,
Miami 32, Fla. Underwriter —
Equity Securities Co., 39

additional

Steck Co.

—

porate purposes. Office

24, 1960, filed 60,000 shares of common stock, of
which 30,000 shares are to be offered for
public sale by
the issuing company and 30,000 shares are now outstand¬
ing and are to be offered by the present holders thereof.

-

•

capital

shares

if

•

Ave., New York. Under¬
writers—Ross, Lyon & Co., Inc. and Globus, Inc., both,

1960

common

approximately $93,443 will be added to the company's
working capital. Business—The company engages in the

June

Office—598 Madison

July 25,

Hudson

sell

Long Island City, N. Y.
Underwriter
Co., Inc., New York, N. Y.

Lewis

the manufacture of the
products of the company and for
the purchase of
necessary tools and
equipment, and

as

thereof.

Street,

—

and

principally to deal in

Inc.
(8/15-19)
(letter of notification) 100,000 shares of 1
(par 10 cents). Price—$3 per share. Pro¬
general corporate purposes.
Office—36-11

•
Tempest International Corp. (8/15-19)
July 11, 1960 filed 100,000 shares of common stock (par
10 cents.
Price
$3 per share. Proceeds — For con;
struction of a
factory, and the balance for general cor¬

development, engineering and exploitation of products
uses applying the
principles incorporated in patents
covering the so-called "Coanda airfoil technique" of
atomizing liquids. Office—2635 Louisiana Ave., South,
Minneapolis, Minn. Underwriter—None.

Proceeds—$200,000 to purchase the Second Ave. and E.
82nd
St.
properties;
$51,000,. to .purchase the /.New

with

,

Corp.
June 22, 1960, filed
250,000 shares of common stock.
Price—$2 per share. Proceeds—Approximately $250,000
will be used in the
development, engineering and design
of new products,
approximatly $150,000 will be used in

to offer these securities ;
in units, each unit is to consist of
$100 principal amount
of debentures, 50 common
shares, and 10 warrants ex¬
ercisable at $2 per share until 1965.
trice—$200 per unit.

and

y

Sprayfoil

is proposed

Rochelle property; and the balance for
Business—The company intends

;

regional sales offices,
and add to working
capital. Office — 3605 East Tenth
Court, Hialeah, Fla. Underwriter—J. I. Magaril Co., 37
Wall St., New York City.
*
' -

Sackar Properties, Inc.
(8/29-9/2)
July 6,1960, filed $300,000 of 8% subordinated instalment
convertible debentures due
1970, 150,000 shares of com¬

chase warrants.

seven

Electronics,

stock

writer—Raymond Moore

Spray-Bilt, Inc.
July 25 filed (in the Atlanta SEC office) 100,000 shares
of common stock (par
10c). Price—$2.50 per share. Pro¬
ceeds—To increase inventory of
"fiberglaspray" equip¬

preferred, with the balance for working capital. Office—
1206 Main:. St., Kansas
City, Mo. Underwriters—Harriman Ripley & Co., Inc., New York
City, and Stern Broth¬
ers, Kansas City, Mo.
\

mon

*

—

establish

closed-

company.

^ Telecolor

20,

ment,

management investment
Ohio Company,

29, 1960,

33rd

working capital. Office—2720 West
Mockingbird Lane, Dallas. Underwriter
Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah. '

employees, with the

Tech-Ohm
June

Edward

and the balance for

balance to be offered publicly. Price-^To be
supplied by
amendment, Proceeds
For redemption of

Columbus, Ohio, Business—A

Columbus, Ohio and
Merrill, Turben & Co., Inc., Cleveland, Ohio.

ceeds—For

repay a bank loan of

St., New York City, on or before Aug. 19.
Southwestern Oil Producers, Inc.
March 23 filed 700,000 shares of common
stock. Price—
$2 per share. Proceeds—For the drilling of three wells

Candies, Inc. (9/15)
Aug. 3, I960 filed 200,000 shares of common stock (par /
$1), of which up to 75,000 shares may be reserved for

—

subsidiaries; to

48 Wall

Stover

and

bank

Gay St.

non-diversified

common

able upon request at the office of Sullivan &
Cromwell,

writer—Morris Cohon & Co., New York.

officers

common

Corp. and Dean Witter & Co. (jointly). Bids—Expected
to be received on
Aug. 23 at 8:30 a.m..(California Time),-;
at 601 N. 5th St., Los
Angeles, Calif. Information—Avail¬

payable, as well as for new tooling, research,. '
repayment of an officer's loan, and general corporate
purposes.
Office—93 Worth Street, New York. Under¬

certain of the issuer's

the

company's construction program. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Go. Inc.; Blyth & Co.; First Boston

,

of accounts

Russell

of

(8/23)
I960,, filed $60,000,000 of first and refunding
mortgage bonds, series M, due 1985. Proceeds—To retire
outstanding short-term borrowings and to finance the

May 27 filed 75,000 shares of common stock (par
$1) to
be offered for cash sale to the
public, and 44,283 shares
to be issued in exchange for common and
preferred
shares of four subsidiaries.
Price—To be supplied by
amendment. Proceeds—To be used
largely for reduction

<

70%

Southern California Edison Co.

July

.

Roto-American

retire

$6,400,000; to add to working capital; to retire certain longterm indebtedness; and to
develop citrus groves. Office
—250 South East First
Street, Miami, Fla. Underwriter
—Bear, Stearns & Co., New York. Offering—Indefinite.

n';

Rotating Components, Inc. (8/15-19)
/
July 8, 1960 (letter of notification), 100,000 shares of
common stock (par
10). Price—$3 per share, i Proceeds—
For general corporate purposes.
Office—267 Green St.,
Brooklyn 2, N. Y. Underwriter—S. Schramm &
Co., Inc.,
New York, N. Y.

Proceeds—To

West

Underwriters—The

outstanding at the date of the stock offering; to
in the capital stocks of six. of the
company's

Invest

Co., New York City: Offering-

Expected in early September.

amendment.

seven

Rollins, selling stockholder, who is a director. Price
—To be supplied by amendment.
Proceeds—For general
corporate purposes. Office—Wilmington, Del. Under¬
writer—F. Eberstadt &

50

end,

457,000 shares, repre- :
senting outstanding stock, to be sold for the accounti
of certain selling stockholders. Price—To be
supplied by /

stock

W.

•

35

by amendment.

St., Los Angeles, Calif. Underwriter—Leh¬

Brothers, New York City.

Transis-Tronics, Inc.
July 18, 1960 (letter of notification) 95,000 shares of
common stock (par 25 cents). Price—$3 per share. Pro¬
ceeds—To retire short term loans; for research and de¬
velopment and for working capital. Office—1650-21st St.,
St., Santa Monica, Calif. Underwriter—V. K. Osborne &
Sons, Inc., Beverly Hills, Calif.
Transnation
March

1

filed

Realty Corp.
$700,000 of 8%

(8/15-19)
subordinated Installment

debentures, due in March, 1970, 70,000 shares of com,

.

Continued

on

page

35

36

Continued from page 35

par) and 35,000 common stock pur¬
chase warrants (exercisable at $4.30 per share until May
15, 1965), to be offered in units consisting of $100 of
debentures, 10 common shares, and five warrants. Price
—$143 per unit. Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬
son
Avenue, New York. Underwriters—Ross, Lyon &
Co., Inc., and Globus, Inc., both of New York. Note—
This company was formerly called the Goelet Corp.

.

$

to retire short-term indebtedness. Office—45
tion

North Sta¬

Plaza, Great Neck, L. I., N. Y. Underwriter—Bear,
(managing).

Stearns & Co., New York City

Union Texas Natural Gas Corp.

it Vitramon, Inc. (9/6-9)
July 27, 1960 filed 103,512 shares of common stock (par
10 cents), of which 25,650 shares are to be offered for
the account of the issuing company and 77,862 shares,

it Wallace Press, Inc.
:
Aug. 3, 1960 filed 184,485 shares of common stock (par

$10). Price—To be supplied by amendment. Business—
printing and the production of business
forms, catalogs, and technical manuals. Proceeds ^— To
selling stockholders. Office—Chicago, 111. Underwriters—
Shearson, Hammill & Co., New York City, and Wm. H.
Tegtmeyer & Co., St. Louis, Mo. (managing). Offering—
Expected sometime in September.
Commercial

Products Corp.

ceeds—To selling stockholders.
Business

—

(8/15-19)

industries. Proceeds—For

electronics

additional

plant, machinery and equipment, the re¬
payment of loans, and the balance for working capital.
an

Office—Burlington, N. J.
&

Co.

Underwriters—L. C. Wegard

of

Levittown, N. J.; Street & Co., Inc. of New
York City; Woodcock, Moyer, Fricke & French of Phila¬
delphia, Pa.; First Broad Street Corp., Russell & Saxe
*

United States Boat Corp.

March

filed

28

United
June

of

common

States

Bowling Corp.
(letter of notification)

1960,

22,

shares

112,500 shares of

stock, (par 25 cents) and $112,500 of 10-year
convertible debentures to be offered in units of

common

61/&%

debenture

and 100 shares
of common stock.
Price—$200 per unit. Proceeds—For
working capital to lease and operate additional bowling
centers. Office—East 701 First National Bank Building,
one

St.

($100 principal amount)

Minn.

Paul,

Underwriter

—

Irving J.

Rice

&

Co.,

St. Paul, Minn.
U.

S.

June

23,

Photo

Supply Co.,

Inc.
1960, (letter of notification) 120,000 shares of
common
stock (par 50 cents).
Price—$2.50 per share.
Proceeds—To pay debts and increase line of credit.
Of¬
fice—6478

Sligo Mill Road, Washington 12, D. C. Under¬
writer—Balogh & Co., Washington, D. C.

* Utah Power & Light Co.

(9/14)

July 29, 1960 filed $16 million of first mortgage bonds,
due

and $10 million (400,000 shares) of $25 par
cumulative preferred stock, series A. Proceeds—For con¬
struction purposes and repayment of bank loans. Under¬
1990,

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co. and

First Boston

Corp.

(jointly); White, Weld & Co.; Stone
Corp. (jointly); Salomon Bros. &
Hutzler; Kidder, Peabody & Co.; Eastman Dillon, Union
Securities & Co. and Smith, Barney & Co.
(jointly);
Lehman Bros.; Bear, Stearns & Co. Bids-—Expected to
&

Webster

be

Securities

received

on

uled for Sept.
Variable

Sept.

14.

Information

Meeting—Sched¬

12 at 2 Rector St., New York City.

Annuity Life Insurance Co. of America

(8/9)
June 16, 1960 filed 1,000,000 shares of

common

stock

(par

$1). Price — To be supplied by amendment. Proceeds—
Primarily to develop and expand the company's busi¬
ness.

Office—1832

derwriter

—

M

John

C.

St., N. W., Washington, D. C. Un¬
Legg & Co., Baltimore and New

York.

...
.

+ Vendo Co.
July 29, 1960

$5,250,000

of

convertible

subordi¬

debentures, due 1980, to be offered to holders of
outstanding common on the basis of $100 principal

amount of debentures for each 50 shares held. Price—To

be

supplied by amendment. Proceeds—For working cap-"
ital; all or part of the proceeds may be applied to the

reduction

of

short-term

bank

borrowings,
which
$8,500,000 on June 30. Office—7400 E. 12th
St., Kansas City, Mo. Underwriter—Kidder, Peabody &
Co. (managing). Offering—Expected in late
September.
amounted to

*

Venture Capital Corp. of America
filed 275,000 shares of common stock
-(par*

f
fulfill
Small

the

No
•

of expanding its commer¬
field.

Organizations Inc.

17, 1960 filed $550,000 of 7V2% subordinated sinking
July, 1970 (with common stock pur¬
chase warrants). Price—100% of principal amount. Pro¬
ceeds—$100,000 will be used for payment of a bank loan
incurred to help finance the disposal plant and an esti¬
mated additional $50,000 to complete the plant; $109,000
to retire 10% debentures issued in payment of certain
obligations of the company for services rendered; $25,000
for a sales program in connection with the Florida
homes; and the balance for working capital to finance
the continued development of the residential community

Underwriter—Michael

G.

Kletz

&

Offering—Expected in late August

Co.,
or

$300,000

per share. ' Proceeds —To be used to
minimum

capital requirements of the

_Business Investment1 Act> : Business—A

non-diversified

closed-end-

management -investment company^. Of'
■ice—t375 J?-ark- Ave.*,- New York.
Underwr iters-^-Filor,




Department Stores, Inc.
that this Bronx (N. Y.)-based
is contemplating an issue of common stock.

was

reported

confirmation

on

Oct.

Oct. 20 at 2:30

was

available.

(10/25)

& Telegraph Co.

Information

25.

p.m., 195

Meeting—Scheduled for

Broadway, New York City.

Arkansas Power & Light Co.
June 20,

1960, it was announced that this, subsidiary of
Utilities, Inc.' might issue $15,000,000 of
first mortgage bonds in December/Underwriter—To be
determined by competitive bidding. Probable bidders:
Middle

South

Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
rities & Co. and Equitable Securities Corp.-(jointly);
Blyth & Co. and Dean Witter & Co. (jointly); Lehman
Brothers, Stone & Webster Securities Corp. and White,

in Sarasota and the construction of homes in West Palm

Weld

&

Co.

(jointly); Merrill Lynch, Pierce, Fenner &

Smith Inc.

Inc.,
early

^ Automation For Industry, Inc.
was reported that a letter of notification
later this year.
Proceeds—For further

Aug. 3, 1960 it
is planned for

September.
Western Factors,

Co.

American Telephone

ceived

Beach, and the development of a shopping center in
Selden, L. I. Office—526 North Washington Blvd., Sara¬
Fla.

development

Inc.

of

the

"Skyjector."

Office—342

Madison

June 29, 1960, filed 700,000 shares of common stock. Price

Ave., New York City.

—$1.50

Bekins Van & Storage Co.
July 6 it was reported that this company is contemplat¬
ing a common stock issue.
Office — 1335 So. Figuroa

per

share. Proceeds—To be used principally for
of additional accounts receivable and also

the purchase
may

be used

ities.

to liquidate current and

Office —1201

Continental

long-term liabil¬

Bank

Bldg., Salt Lake
City, Utah.
Business—Factoring.
Underwriter—Elmer
K. Aagaard, Newhouse Bldg., Salt Lake City, Utah.
•

Street, Los Angeles
Bobbie

Brooks,

15, Calif.
Inc.

July 25,

1960 the company stated in its annual report
that about $200,000 is expected to be raised by long term

Western

Kentucky Gas Co. (8/11)
June 22, 1960, filed 55,000 outstanding shares of common
stock (par $5). Price—To be supplied by amendment.
Proceeds—To selling stockholder (Henry L. Hillman of
Pittsburgh, Pa.). Business—Operating public utility. Ad¬
dress—-608 Frederica St., Owensboro, Ky.. Underwriter—
Equitable Securities Coro., Nashville, Tenn.. and New

financing, to be applied to the $385,000 cost of acquiring
real estate adjacent to its Cleveland 14, Ohio, head¬
quarters.

Bridgeport Gas Co.
July 26, 1960 it was reported that
is expected later in the year. No

York.

available. Address—P.

Western Land Corp.
July 5, 1960, filed 1,500,000 shares of common stock.
Price—$2 per share. Business—Company proposes to en¬
gage in the real estate business, including the purchase
and sale of real property and the purchase or construc¬
tion and development of industrial and other properties,*
including shopping centers and apartment and office
buildings. Proceeds — Primarily for real estate invest¬
ment. Office—2205 First National Bank Bldg., Minne¬

apolis,

Minn.

Underwriter

—

First

Western

,

Columbia Gas

System, Inc.

(10/6)

13, 1960, it was reported that the company plane
to sell $30,000,000 of debentures. Proceeds — For con-,
struction. Office—120 E. 41st St., New York City. Un¬
derwriter—To be determined by competitive bidding..
Probable
bidders:
Merrill
Lynch, Pierce,
Fenner &
Smith Inc.; Shields & Co.; R. W. Pressprich & Co. and
Carl M. Loeb, Rhoades & Co., all of New York City.

per
share.
Price — For the debentures, 100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment.
Office—Myerstown, Pa.
Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa.

Bids—Expected to be received

on

Oct. 6.

Columbus & Southern Ohio Electric Co.

June

13, 1960, it was reported that this utility plans the
about 200,000 shares of common stock to raise
approximately $8-$9,000,000, with the timing set,, for
the last quarter of this year, sometime after the Novem¬

sale

WL.'er

Color Television System, Inc.
(8/15-19)
(letter of notification) 80,890 shares of common;
stock
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y.. Underwriter—Equity Securities Co., 39

Jan. 29

of

ber elections. Proceeds—For
—215 N. Front
•

Broadway, New York City.

expansion purposes. Office*
St., Columbus 15, Ohio.

Consumers Power Co.

.

April 29 the company asked the Michigan Public Service
Commission for permission to issue and? sell securities

•

property.'Office

,•

June

Whitmoyer Laboratories, Inc.

various leasehold improvements dh the

financing
details are

new

further

^ Colorado Interstate Gas Co.
July 28, 1960 the company reported that debt financing
of $70,000,000 is contemplated.
Precise timing depends
on final FPC approval. Office—Colorado
Springs, Colo.

Corp., of

WonderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain
property, for -constructing at motel on said property and*

some

1540, Bridgeport 1, Conn.

determined.

(8/15-19)
Jan. 28 filed 85,000 shares of common stock and $500,000
of 6% subordinated debentures, due 1977, with warrants
for the purchase of 10,000 additional common shares at

•

O. Box

Brooklyn Union Gas Co.
May 10 it was announced that the company plans no,
more financing this year, but there would
be some in
1961, although the form it is to take has not as yet beeitv

Minneapolis, Minn.
•

.

$250,000,000. Proceeds — For improvement
and expansion of Bell Telephone services. Office—195
Broadway, New York City. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Morgan
Stanley & Co., and The First Boston Corp. and Halsey,
Stuart & Co. Inc. (jointly). Bids — Expected to be re¬

fund debentures due

sota,

^

bond issue of

,

New York.

*

July 20, 1960, the directors authorized a new debenture

Office—2445

$5
filed

nated

the

purpose

it

6

retail chain

Emerald St., Philadelphia, Pa. Underwriter—Stroud &
Co., Philadelphia and New York. Offering—Expected in
late August.
1
Wenwood

-

Alexander's

July

Inc*

June

(8/15-19)

stock to be
publicly offered. Price—$2 per share. Proceeds—$221,826 will be applied to the repayment of loans to United
States Pool Corp. which were used for general corporate
purposes, and the balance will be utilized for working
capital, including a later repayment of $45,000 to U. S.
Pool Corp.
Office — 27 Haynes Avenue, Newark, N. J.
Underwriter—Richard Bruce & Co., Inc., New York,
r
350,000

Office—South Beloit, 111.

Business—Electronics

business.

.

company's annual report stated that capital
improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and $45,000,000.
It is
anticipated that a substantial proportion of this money
will be forthcoming from depreciation and
retained
earnings. In addition, the sale of $10,000,000 of preferred
stock in 1960 is planned to supply a part of these over¬
all capital requirements. Office—Chicago, 111.

$1). Price—$5 per share. Proceeds—To be used primari¬
ly to accelerate the development of the company's pro¬
cial

•

March 25 the

June 24, 1960, filed 100,000 shares of common stock (par

Wickett & Co., Inc. all of New York City.

end V. S.

Acme Steel

produces
electrically - actuated
a wide variety of industrial

Products Co.,

prietary items for the

*<*"',

"

Prospective Offerings

(8/17)

equipment, electric wheel brakes for mobile homes and
trailers, and electric compressor and fan clutches used in
automotive air conditioning and cooling systems. Under¬
writers—Blunt Ellis & Simmons and Bacon, Whipple &

Waterman

.4•• •'

of the company

Co., both of Chicago, 111.

15, 1960 filed 100,000 shares of common stock
(par 10 cents). Price—$3 per share. Business—The man¬
ufacture of precision metal products for use in the air¬

missile and

Company

Mining Co;'

adequacy of this statement. A hearing sched¬
July 27 was postponed to Aug. 29 at the request
counsel.

uled for

brakes and clutches used in

June

craft,

Co.

& Clutch

,

racy and

June 29, 1960, filed 154,916 outstanding shares of com¬
mon stock. Price—To
be supplied by amendment. Pro¬

—

United Aero

Brake

(9/12-16) !

May 6 filed 1,000,000 shares of common stock. Price— $1
per share. Proceeds—It is expected that some $100,000
will be used to purchase and install a mill for the proc¬
essing of ore; $60,000 for rails, ties, rail cars and related
equipment; $10,000 for rebuilding rpads; $30,000 for
transportation equipment; and $655,000 fer working cap¬
ital. Office—6815 Tordera St., Coral Gables, Fla. Under¬
writer—None. Note—The SEC has challenged the accu¬

preferred stock; $112,500 to prepay'
mortgage notes; and the balance for

Electric

Yardney Electric Corp.

,

working capital. Office—Bridgeport, Conn. Underwriter
—G. H. Walker & Co., New York City..^v;.v:,

Warner

Thursday, August 4, I960

Boulevard; Los.„ Angeles, / Calif. JJndef*
Securities Corp., same address.

Sunset

Yuscaran

redeem outstanding
on

.

company is principally engaged in the development, de¬
sign, manufacture and sale of silver-zinc primary and
rechargeable batteries. Office-*-NeW'York City. Underwriter—Kidder, Peabody & Co., New York.,;.
;
:

,

supplied by amendment. Business — The manufacture
and sale of dielectric capacitors. Proceeds — $25,000 to
balance

.

July 11, 1960 filed 254,000 shares of outstanding common
stock (par 50 cents). Price—To be supplied by amend¬
ment. Proceeds—To selling stockholders. Business—The

*

July 8, 1960, filed 150,248 shares of outstanding class A
stock (par $1), and 75,124 shares of outstanding class B
stock (par $1). Price — To be supplied by amendment.
Proceeds
To selling stockholders.
Office —- 811 Rusk
Ave., Houston, Texas.
Underwriters — Carl M. Loeb,
Rhoades & Co., Merrill Lynch, Pierce, Fenner & Smith
Inc., and Smith, Barney & Co., Inc., all of New York
City. Offering—Expected in mid-August.
©

•

representing outstanding stock, are to be offered for the
account of the present holders thereof. Price — To be

the

.

writer—Standard

and Bregman,

it Triangle Lumber Corp. (9/1) ->y;-//
July 28, 1960 filed 140,000 shares of common stock (par
$1), of which 118,000 shares are to be publicly offered
by the company and the remaining 22,000 shares are
to be offered to the company's officers and employees.* *
Prices—For the 118,000 shares, $8 per share; for the 22,- ■
000 shares,, $7.20 per share. Rusinesss — The buying,
warehousing, milling, and distribution of lumber, ply¬
wood, and millwork for use in residential and industrial
construction. Proceeds
For general funds to provide
additional working capital, and may be used in part
—

—7805

Smyth, Hardy & Co., Sprayregen, Haft & Co. Cummings & Co., all of New York, Offer-,
Ing—Expected in late August or early September.

Bullard &

V

r

stock (10 cents

mon

Chronicle

The Commercial and Financial

(488)

with base value of

;
-

$73,101,600.-The company proposes to
mortgage bonds .in the;-amount .of
$35,000,009 maturing noL earlier than- ,1990 fiorfthe. be»tjf
price-obtainable but not'4ess:favorab|e, to; the/cpmpamy
issue

and: sell: first

-

Volume

192'

:

Number 5974

.

.

The Commercial and Financial
Chronicle

.

(489)
than a 544 % basis. The mortgage bonds
.arei expected in
the last quarter of the year,
perhaps in October. The
balance of the securities is being offered.- See
"Secu¬
rities in Registration." Proceeds—To be used to
finance

the

continuing expansion

and

pany's electric and
outside

area

determined

of

by

improvement

gas service facilities
Greater Detroit.

competitive

of the

in

com¬

a

65-county
Underwriter—To be
bidding. Probable bidders:

bonds—Halsey, Stuart & Co. Inc.; White, Weld &
Co., and Shields & Co. (jointly); Morgan Stanley &
Co.;
Corp., and Harriman, Ripley & Co., Inc.
• Croft Carpet
Mills, Inc.

For

The First Boston

July 27 it was reported that

letter of notification

a

of

74,750 shares of the firm's 10c par common stock is ex¬
pected to be filed imminently* in the Atlanta, Ga., SEC

office. Price—$4 per share.

Business—Company

manufac¬
carpets. Proceeds—For in¬
ventory,
debt reduction, and sales and
advertising
expenses.
Office—205-11 Fourth St., Fort Oglethorpe,
Ga. Underwriter—A. J. Frederick &
Co., Inc., New York
City.
' 'v"
0
;
../1
Custom Craft Industries
distributes

and

tures

tufted

,U°u1."!ly,).i.,5a=tnXan Di!Io">.

.

July 13, 1960 it was reported that the company plans a
regulation "A" filing sometime in mid-August. Proceeds
—For general corporate purposes.
Office—Miami, Fla.
Underwriter — Plymouth Securities
Corp., New York
City.

V

Electronics

July 26,

International

1960 it

Capital Ltd.

reported that this company, which
expects to incorporate in Bermuda, is planning its ini¬

size

electronics

companies

year.

Proceeds

large

outside

the

and

—-

To

medium-

United

States.

June&l,

was

intends to issue $10,830,000 of 7% secured
serial notes in
connection with its merger with Canton
Co. of Balti¬
more, which will be the name of the
surviving corpora¬
tion. It is expected that the notes will
be issued shortly
at par, and will mature at the
rates of $1,000,000 an¬
nually for one to three years, $500,000

annually for iour

to

nine

that

the

company anticipates

approximately $50,000,000 of new money. This company on May 31 floated
a 400,000 common share offering
through Merrill Lynch,
Pierce, Fenner & Smith Inc. and associates at a price of
$59,125 per share.
Power

March 10 it

Corp.

(10/20)

was

construction and repayment of bank loans. Underwriter
—To be determined by competitive
ders: Halsey, Stuart & Co.

bidding. Probable bid¬
Inc.; Kidder, Peabody & Co.
Pierce, Fenner & Smith Inc. (joint¬
ly); First Boston Corp.; Eastman Dillon, Union
Sequri-r
ties & Co. and Harriman Ripley & Co.
(jointly); Lehman
Brothers and Blyth & Co. (jointly). Information
Meeting
and Merrill Lynch,

—Scheduled for Oct. 17 at 11:00 a.m. at
Morgan Guaranty
Trust Co. Bids—Expected to be received on Oct. 20.
Food

Plus

Inc.

/

July 20, 1960, it was reported that this company is ready¬
ing its first public offering. No confirmation was avail¬
able from the company. Office—62 W. 45th
Street, New
City. Note — The president of the company, Mr.
Jack Bernard, has advised us that no
York

offering is

con¬

templated.
Ford

Motor Credit

March 28 it

Co.

was

reported that this company is develop¬
ing plans for borrowing operations, which may include
the issuance of debt
securities, and possibly occur later
this year. Office—Detroit, Mich.

Georgia Power Co.
Dec. 9 it
tration
with

was

of

the

(11/3)

announced that

$12,000,000
SEC.

of

the company plans regis¬

30-year

Underwriter

first mortgage

bonds

To

be
determined
by
Probable bidders: Halsey, Stuart &
Co.; Equitable Securities
Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on
Nov. 3. Information Meeting—Scheduled for
Oct. 31.
—

competitive bidding.
Co.

Inc.; Morgan Stanley &
Corp., and Eastman Dillon,

Hayes Aircraft Corp.
Feb. 12 it

bentures

was

is

an

issue of convertible de¬

discussed.

Office—Birmingham, Ala.
Possible
Underwriter—Sterne, Agee & Leach, Birming¬
ham, Ala.

Sutherland

was

stock

Paper

reported that

is

secondary offering of com¬
being discussed. Proceeds—To

presently

—

Lehman

New York.

Brothers,

Laclede Gas Co.

May 10 it

was announced

that in addition to the
$15,000,capital provided by the July bond-equity
financing, $33,000,000 will come from later sale of secu¬
000

of

new

rities other than

common

stock and from retained

earn-

Long

Island Lighting Co.
13, 1960, it was reported that the company is dis¬
cussing the sale of approximately $20-$30,000,000 of debt
financing, probably to occur sometime this Fall. Proceeds
June

—For

construction.

Salomon

Electric

Texas.

Building, Houston,
,

\

250

Old Country Road,
be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; W. C. Langley &
Co.; Smith, Barney & Co. and
First Boston Corp., all of New York
City.
—

Mineola, New York. Underwriter—To

Louisville Gas & Electric Co.

April 27

it

reported

was

that

•

Louisville & Nashville RR.

July 18, 1960, it

reported that the Road plans to sell
$7,530,000 of series X equipment trust certificates. Pro¬

ceeds—To

cover
80% of the cost of 900 gondola cars.
Underwriter-—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc. and Salomon

9,

up

to

noon

Bids—Expected to be received

EDT.

Merrimack

on

Aug.

Electric Co.

Mass. Underwriter

To be determined by competitive
Probable bidders: Kidder, Peabody & Co. and

White,

Weld

Fenner

&

Co.

&

Smith

—

Co.

(jointly);

and

Eastman Dillon, Union Securities

Merrill

Lynch,

Pierce,

(jointly); First Boston Corp.

Midland
that it

Enterprises
stated

Inc.

in

the company's annual report
contemplates the issuance on or before March 31,
a

was

bond issue in

an

aggregate amount not to exceed

$4,000,000. Proceeds — To finance river transportation
equipment presently on order and expected to be
ordered.

Office—Cincinnati, Ohio.

Bros.
&

&

Hutzler

Co.

and

(jointly);

Eastman

Equitable

Dil¬

Se¬

Indianapolis

Power & Light Co. (9/27)
:
April 18 it was reported that the
company will issue and
^sell $12,000,000 of 30-year first mortgage bonds. Under¬
writer—:To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co.




Inc.; Lehman Broth-

±
^

It

on

about'oct'^^nder^reemnth ^

or

Northern Natural
reported

was

Gas

Co

°"

on

Aug. 2, 1960 that the
utility is con¬
templating issuing $30,000,000 of
debentures in the Fall

Office—Omaha, Neb.
•

v

Northern Pacific
Ry.

:

J

(8/24)

Xl'i®6!'
it was reported
$6 270,000 of railroad

Aug.
the

2, 1960

ICC

trust
way

it was reported that the road has asked
permission to sell $15,000,000 of collateral

for

bonds

without

competitive bidding.

Exchange Bldg., St. Louis 1, Mo.
Insurance

Office—Rail¬

be

equipment trust certificates.

^

Stuart & Co.

Bros. & Hutzler.

Bids—Expected

Northern States Power Co.
May 11 it was reported that the
suance

and sale of

bonds.

$35,000,000

expan¬

Broadway, New York City. Underwriter
Co., Inc., 39 Broadway, New York City.

Nedick's Stores, Inc.
Nov. 12 it was reported that

plating the placing in
common

stock.

About

the company is contem¬
registration of 17,000 shares of
66% of the issue will be sold

for the company's account and the
remaining 34%
ance will be sold for the account of a

bal¬

selling stockholder.
Underwriter—Van Alstyne, Noel & Co., New York.
.New York
June

22,

Telephone Co. (9/28)
1960, the board of directors of this company

authorized the issuance of

an

Inc.

and

(Minn.)

Prob-/

Salomon.

to be received

24 up to noon
EDT.

on

Aug.

(12/6)

company plans the is¬
of 30-year first
mortgage

Underwriter—To be determined
by competitive
bidding. Probable bidders:
Halsey, Stuart & Co., Inc.;
Merrill Lynch,
Pierce, Fenner & Smith Inc.,
Kidder,
Peabody & Co.
and

White, Weld

First Boston
Corp. and Blyth &
man Brothers and
Riter & Co.
curities Corp. and

& Co. (jointly); The
Co., Inc. (jointly); Leh¬

(jointly); Equitable

Se¬

Eastman Dillion, Union
Securities &
(jointly). Bids—Expected to be received
by Dec. 6.
Orange & Rockland
Utilities, Inc.
April 18 it was stated that the

Co.

presently ex¬
pects that such part of its
construction program through
1962 and the
refunding of $6,442,000 series B bonds ma¬
turing in 1961 as is not financed
by the sale of the com¬
pany's 39,165 shares of its
convertible cumulative pre¬
ferred stock, series
E, 5% (par $100) will be financed
from the proceeds of
sale in 1961,
subject to market con¬
ditions, of $10,000,000 of its first
mortgage bonds, from
depreciation and retained
earnings and, to the extent of
any remaining
balance, from the proceeds of additional
short-term borrowings.

★ Otter Tail Power Co.
July 27, 1960, Albert V. Hartl, executive
Vice-President
of this utility
told this newspaper that an * issue of
$6,000,000 of first mortgage bonds is
contemplated, al¬
though "plans for implementation of this,
project during
1960

are

as

yet

indefinite, and there

sibility that it might be
Fergus Falls, Minn.
Pacific

to sell

postponed

is

distinct pos¬
Office-^

a

to

1961."

,w

»

Lighting Corp.
was

announced that this

additional

pipeline

company, in order to

distribution

$30,000,000 of first mortgage

systems,

plan*

bonds and $20,000.-

000 of preferred stock later this
year.

Panhandle Eastern
Pipe Line Co.
was reported that this
company

April 19 it
about

$65,000,000

quarter

of

this

of

debentures,

possibly

year.

—

might sell

in

the

Merrill

third

Lynch,

Kidder, Peabody & Co.,

both of New York.

Philadelphia Aquarium Co.
15, 1960, it

to finance

was

reported

that the company

$2,000,000 of debentures

and

common

plans
stock

aquarium in Fairmont Park,
Philadelphia,
which would be city-owned and
company-operated un¬
an

der

a lease.
Underwriter—Stroud
delphia, Pa. and New York.

&

Co., Inc. of Phila¬

^ Polymer Corp.
* i

Aug. 2, 1960 it

was reported that the
company plans to
$3,500,000 of convertible debentures shortly. Office
—Reading, Pa. Underwriters
White, Weld & Co. of
New York City and A. G.
Edwards & Sons of St. Louis,
Mo. (jointly).

Potomac

Electric Power Co.

March 21 it

was stated in the
company's annual report It
is anticipated that their 1960 construction
program will
amount to $39 million and there will be

further financing
of about $15 million of an as
yet undetermined type.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co., Inc.; First Bos¬
ton Corp.;
Dillon, Read & Co. and Johnston, Lemon
&

Co.

Lynch,

(jointly); Kidder, Peabody & Co. and Merrill
Pierce, Fenner & Smith (jointly); Lehman

Brothers and Eastman Dillon & Union
Securities
and Stone & Webster Securities
Corp. (jointly).

& Co.

July 22, 1960 the company reported that there is "a
sonable possibility" that additional common stock
be sold later this year or
early in 1961.

Colo.
Public Service Co. of New

Co.

supplied by amendment. Proceeds—For

—R. F. Dowd &

plans to offer

rea¬

may

Office—Denver,
^

-vvv;

March

sion. Office—198

1

'

that the Road

Public Service Co. of Colorado

^ Missouri-Kansas-Texas Railroad

—To

Union Securities
curities Corp.

graph Co.

—

reported that this subsidiary of the
New England Electric System plans to sell
$10,000,000 of
preferred stock sometime in the late fall. Office—Salem,
was

etc.

(jointly); Salomon

—

•

file

,

Essex

July 19, 1960, it

Commission,

be determined

bv
competitive bidding.
Probable bidders:
Halsey Stuart &
Co. Inc.;
Morgan Stanley & Co..
Bids—Expected to be
reoewdonor about
Wednesday, Sept. 28. Note
The

to sell about

(8/9)

was

Bros. & Hutzler.

j

bank borrowings used to

June

Oct. 18.

on

nnn

Publ'c Service

Underwriter—To

—Expected to be received

16, 1960, it was announced that the company
expects to register its first public offering imminently.
The offering will consist of
75,000 common shares. Price

lon,

can nnn

Underwriters
Pierce, Fenner & Smith Inc. and

March

Underwriter—To be determined by competitive bid¬
ding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth
&
Co., Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Merrill
Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.

of

$120'ooonnn<S2T
f12^00?'000. subject to the ap-

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man
Brothers and Blyth & Co., Inc.
(jointly); Kuhn,
Loeb
&
Co., American Securities Corp. and Wood,
Struthers & Co. (jointly); Eastman
Dillon, Union Se¬
curities & Co. and White, Weld & Co.
(jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids

Mohawk

Idaho Power Co.

riJf™ i

Tn

finance construction.

finance

,

30 it was reported that the
company plans to
issue and sell
$15,000,000 of 1st mortgage bonds due 1990
sometime in the fall. Proceeds—For
capital expenditures,

v"

lvr*

proceeds—To retire short-term

May 11 it

(10/18)

this

company plans the
issuance and sale of $16,000,000 of first
mortgage bonds.
Proceeds—For construction.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:

1961 of

company's annual
anticipates approximately $35 million in
new
money will be required in 1960 to support the
year's construction
program, and to repay outstanding
bank loans. Studies to determine the
nature and timing
of the issuance of
additional securities are presently
under way. Last
August's offering of $25,000,000 of 47/s %
first mortgage bonds was headed
by Lehman Brothers,
Eastman Dillon, Union Securities & Co. and
that it

Office

th^

37

company

Co.

a

selling stockholders. Underwriter

report

—

the

1961, probably also for senior debt securities.

April 8 it

Office

after

Iowa-Illinois Gas & Electric Co.
23, 1960, it was announced that the
company's sale
of $15,000,000 of first
mortgage bonds in April of this
year will carry it through the better
part of 1960. The
company plans some bank borrowing before the end of
the year and expects to be in market
again sometime in

Houston Lighting & Power Co.
March 22 it was announced in the

Bros. & Hutzler.

year

Electric Light & Power Co.
President Sutherland Dows stated that bonds
would be sold in order to supplement
money to be ob¬
tained from temporary bank
loans, to acquire the $10,000,000 required to finance 1960 construction. OfficeCedar Rapids, Iowa.

bidding.

reported that

being

10th

ings.

reported that $25,000,000 of first mort¬
gage bonds will be sold by this utility. Proceeds—For new

•

the

Avenue, New York City. Un¬

Iowa

K.V.P.

further financing in the fall of 1960
approximating $25,000,000 of an as yet undetermined type of security, and
estimates that in 1961 it will require

Florida

$4,830,000
Fifth

March 11

mon

announced

and

years,

merger. Office—535

derwriter—None.

nf

Proceed*

Meeting—Scheduled for

International Mining Corp.
announced
I960 in the 1959 Annual Report 0f international Mining Corp. that the
corporation
jt

June

was

Droval

on Sept. 27.
Sept. 22 at 11:00
a.m., at the Chase Manhattan
Bank, 43 Exchange Place,
New York City, Room 238.

May 11 it

it

bonds in the amount
stock in the amount of
gage

.

Co.;

&

to be received up to 11 a.m. New York
Time

Information

Underwriter—Bear, Stearns & Co., New York City.
Florida Power & Light Co.
1

Securities

June

was

tial financing to occur later in the
acquire major equity positions in

Union

White, Weld & Co., and Shields & Co. (jointly); Blyth
& Co., Inc.; Equitable Securities
Corp. Bids—Expected

.

.

Goldman, Sachs & Co., and The First Boston
Corp,

ers;

additional series of mort-

Hampshire

April 4 it was stated in the company's annual
report
that short-term
borrowings will increase progressively
during 1960 until further permanent financing is under¬
taken later in the year.
The timing, type, and amount
of this financing has not been
determined.
Public

Service

Electric

&

Gas

Co.

(9/20)

May 18 directors of this company took preliminary step*
for the sale of
$50,000,000 in first and refunding mort¬
gage bonds, dated Sept. 1, 1960, to mature
Sept. 1, 1990.
Proceeds

To pay all or part of
company's short-terr»
indebtedness incurred for construction. Underwriter—To
—

be determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb & Co., and Lehman Brothers
(jointly). Bids—Ex¬
pected to be received on Sept. 20
up to 11 a.m., in New¬

ark, N. J.

Information Meeting—Scheduled for Sept. 19
Continued

on

page

38

38

The Commercial and Financial Chronicle

(490)

Continued from page 37

'

>

certain outstanding

,1

'

the Chase Manhattan Bank, 43 Exchange
Place, New York City, Room 238.
26, 1960 it was reported that in addition to the
$50,000,000 to be obtained from the Sept. 20 bond offer¬
ing, $95,000,000 more will be needed to complete the
1960 construction program. Further financing is expect¬
later

in

with the type and timing

year,

undetermined.

■

Ritter

July 6 it
solidate

yet

as

Co.,

Jan.

thorization

$2,500,000 of funded debt, possibly through
placement, pursuant to which a bond issue
may be expected. Underwriter—Lehman Brothers, New
York City.
•
'
a

some

Rochester

March

it

1

Electric Corp.
stated in the company's annual report

was

York

Commission

for

the

issue $10,000,000 of new preferred stock. Aug.

to
it

Service

Public

State

New
right

1, 1960

reported that $15,000,000 of debt financing is ex¬
pected in the spring of 1961, perhaps in March. Under¬
was

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
& Co.,
Kuhn,
Dillon,
Corp.
Corp.

Union Securities & Co., and Equitable Securities
(jointly); Blyth & Co., Inc.; The First Boston

debentures with detachable

with

be

this

made

—

Merrill

the

company

(jointly).

stated in the company's annual report that

to

expects

p.m.

to

provide

for

the

of

payment

11

a.m.

Better in 1959 Than in 1958

They increased from 88.73% in 1958 to 89.73% last
study under the research directorship of Dr.
a

similar

down, and
In

1959

full

debt

on

discusses
service

new

was

$4,948,302,456,

paid in
or

on

89.73%, of the total $5,514,726,133
publicly offered foreign dollar
bonds
outstanding on Dec. 31,
1959, according to a bulletin en¬
titled "Statistical Analysis of Pub¬
licly Offered Foreign Dollar
Bonds," issued recently by Dean
of

Joseph H. Taggart, director,
Dr.

Marcus

Nadler,

research

and

and country-by-country break

issues floated

the

past year.

versity.
The

increase

in

proportion

of

bonds serviced in full from 88.73%

bonds

assented

to

the

which in many instances involve

funding of interest
adjustment

the flotation of

arrears and

bonds,

and

is¬

(OOO.OOO)

$4,631.8

88.73

$4,948.3

89.73

587.3

11.25

565.3

10.25

0.02

1.1

0.02

Per Cent

———

$5,220.2

100.00

$5,514.7

Geographical Distribution
Interest

on

of

Latin America

Bonds in Default in Regard to
1959

Far East

North

in Default

(000,000)

(000,000)

Africa

International

Per Cent
■

of Total

Defaulted Bonds

566.9

$43.0

7.6

1,118.2

515.8

91.2

317.3

6.6

1.2

___*

America

Amount

Outstanding

$

2,191.3

T

__

74.7

_

Institutions! 1 1,246.3
$5,514.7




received

the nominal

publicly offered foreign
bonds outstanding
at the

dollar
end

—

$565.4

100.0

the

upon

interest

of

the

year,

3.52%

was

as

year, Europe paid 2.09%
of 5.42%.
The issues of

America,

Africa,

interest.

The

Eastern
a

contractual

bonds

in

of

amount

the

total

outstanding

caused

of

con¬

interest, received

cash

constituted

average

3.38%

against

as

by
amortization,
calls, and maturities.
Data on the status of all pub¬
licly offered foreign dollar bonds

terest

of

On Dec.

31, 1959, European and

ed

for

98.8%

of

defaulted

bonds.

Of the total Latin-American bonds
in

default, Bolivia

accounted

for

defaulted
defaulted

u r o

from

p

e's

89.8%

91.2%

for

bonds,

pared with 8.9%
E

bonds.

accounted

on

on

Dec.

31,

for 1.2%

paid, as compared with the
corresponding figure for 1958, is

due

to

the

principal

increase

serviced issues,
rates
rise

on

in

the

assented
vice

to

as

com¬

increased

end of 1958 to

1959. The Far
1959

of total defaulted bonds.

geographical distinction of
foreign dollar bonds in default in
regard to interest on Dec. 31, 1959,
is shown in Table
At the end of

Latin-American

and

percentage
the

of

various

Actual

bonds

debt-ser¬

rate

for

Europe,

East.

and

For
turn

1959,
of

an

2.24%

Rate

bonds amounted to

re¬

received

on

was

Latin-American

pared

to

2.76%.

as

contractual

a

In

bonds

outstanding

amount of $2,178,803,918.

in

terest

against

as

:

contractual

The

due,

1958.

due

the

and

ceived for

amount

.

in¬

of

amount

re¬

1959 coupons on bonds

outstanding on Dec.
shown in Table III.

31, 1959, are

Under the heading "Recent De¬
velopments," the NYU study dis¬
cusses

new

during
new

the

foreign issues floated

past

12

months

and

settlement offers of defaulted

bonds, including the April 6, 1960

1959,

the rate of 2.48%

com¬

Butler, Herrick Office
BABYLON,
rick

&

branch

N.

Y.—Butler,

Marshall

office

has
865

Her¬

opened

a

Mon-

rate

of

paid

at

tauk Highway under the manage¬

instead of 5.43%

ment of E. Kenneth Donovan and

Europe

the preceding

Edward

at

West

Baker.

Table IH

Contractual

Amount

of

Interest

Due

and

Amount

Received

in

Cash for Coupons of Bonds Outstanding on Dec. 31, 1959
Contractual

Amount

Amount of

Average

Amount

of

Int. due

Contractual

Received

Average

in Cash

Rate of

the

North

defaulted

Africa

Amer
—-—

Internat.
Total

Institu.

——

(000)

$

Per Cent

Nominal
Outstanding

43.6%

only $16,000 of
bonds in the

The

4.69%.

slavia.

of

actual rate of

y

2.7 for

of

Far

against

Return

II.

Canadian

the

4.67%

was

offer of the government of Yugo¬

Contractual

vs.

of
the European, and 2.1% of the Far
Eastern bonds outstanding were Latin Amer.
in default. For 1958, the percent¬ Europe
Far East
ages were 8.8 for Latin America,
52.1

the

to

resumption, plans.

1959, 7.6% of the
bonds,

total

fully

to higher interest

contractual rate; in

Regional Breakdown

new

issues,

new

the

in

of

amount

7.6%

Dec. 31, 1958.

percentage
at the

Latin
of

in the actual amount of in¬

crease

North

amount received in cash in respect
to 1959 coupons was 84.39% of the

the

contractual rate of 4.10%. The in¬

of

return

issues

contractual amount

reduction

the

with

instead

and of interna¬
tional
institutions
paid in both
years the full contractual rate of

82.38%

total
*16,000

based

cash

re¬

amount

Far

Total

1959,
of

The

December 31,
Amount

in

amount

interest

of

compared

100.00

Table H

turn

rate

,

tractual rate of 4.17%. In 1958 the

the

East accounted at the end of

1.1

study states:

actual

'

■

offset

total
31,1959——

The

'

,

In analyzing interest payments,
the Institute's

prod¬
Office

Underwriter—Lee Higginson Corp. of New

—Erie, Pa.

of interest arrears have more than

America

Percent

Principal

3:00

funding bonds issued in settlement

$458,482,000 prin-

Default in Regard to Sink¬

Total

issues and the

new

resented 42.65% of the total Euro¬

-Dec.

control devices, and building plumbing drainage
ucts. Proceeds—For general corporate purposes.

amount of

$20,000,000; The Nether¬
$18,500,000;
and
Jamaica

55.38%,.while German issues rep¬

Dec. 31,1.958

or

Of

prov¬

to

(000,000)

of mechanical power

ture

from 1959 coupons on

various

Status of Publicly Offered
Foreign Dollar Bonds

ing Fund

issues.

new

Canadian

plans, Latin-American obligors account¬

resumption

and selling stockholders. Business—The manufac¬
transmission equipment, fluid

pany

Denmark

pean

In

of

of

due

debt-service

at

Industries, Inc.

York City.

Dec. 31, 1958 and 1959, are
1958, the NYU study states, was
summarized in Table I.
to
the
growing number of

in

Zurn

company

July 19, 1960, it was reported that 250,000 shares is ex¬
pected to be filed shortly for the accounts of the com¬

Oct. 19 up
17

,

plans to.
sell $30,000,000 of first mortgage bonds sometime later
in the year. Office—Milwaukee, Wis. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
&
Smith
and
Equitable
Securities
Corp,
(jointly);
Glore, Forgan & Co., Eastman Dillon, Union Securities
& Co. and Harriman Ripley & Co., Inc. (jointly); The
First
Boston
Corp., Lehman Brothers and Salomon
Brothers & Hutzler (jointly); Blyth & Co.

000; Italy $30,000,000: Japan $30,000,000; Australia $25,000,000;

as

Table I

Debt Service Paid in Full——
In Default in Regard to
Int.—

on

Meeting—Oct.

inces and municipalities accounted
for $274,982,000; France $50,000,-

principal

tute of Finance of New York Uni¬

di-, suing

rector, of the C. J. Devine Insti¬

in

issues

$10,000,000. The

improvement in the decline of interest-

foreign

^-Wisconsin Electric Power Co.
Aug. 2, 1960 it was reported that the

determined

amount

lands

In addition, the

Marcus Nadler reveals

stock purchase war¬
(parent) will purchase not

Information

cipal

University analysis of how American ownership of foreign
bonds fared last year shows improvement in
proportion of bonds

payment defaults, provides a regional

EDT.

these,

Hew York

year.

.

common

Bids—Expected to be received

;''••"'////:y-^ ://yyy/r;'/!:t:::v;
Park

Telephone Co.
May 10 it was announced that this company, during the
first quarter of 1961, will issue and sell approximately
30,000 additional shares of its common stock. This stock
will be offered on a rights basis to existing stockholders
/ and may or may not be underwritten by one or more
securities brokers. Future plans also include the sale
of $2,000,000 of bonds in the second quarter of 1961.
Office—132 East New England Ave., Winter Park, Fla.

at the Bankers Trust Co.

Foreign Dollar Bondholders Fared

serviced in full.

Winter

Brothers, Blyth & Co. (handling the books), Eastman
Dillon, Union Securities & Co. and Bear, Stearns & Co.

Southern Natural Gas Co.
was

York City,

by competitive bidding./
Probable bidders: Halsey, Stuart & Co., Inc.; First Bos¬
ton Corp. and White, Weld & Co.
(jointly); Lehman

Inc., both of New York City.

April 4 it

was reported that this New Jersey com¬
plans to register an issue of common stock in Sep¬
tember. Underwriter—Van Alstyne, Noel & Co., New

Electric Co. (10/19)
16, 1960, it was announced by Dudley Sanford,
Executive Vice-President, that the company plans an
offering of approximately $50,000,000 of 30-year first
mortgage bonds. Proceeds—To meet construction ex¬
penses.
Office—315 No. 12th Blvd., St. Louis, Mo. Un¬

Lynch,

" /'

■

-

pany

Union

Pierce, Fenner & Smith Inc. and Harriman Ripley & Co.

'!' yy„' y!\7 /

y,/

July 19, 1960, it

proposed

be

Blvd., Brook¬

,

Whippany Paper Board Co.

least

derwriters—To

i

Gas Co.

of $400,000.

sum

/

Hutzler

&

'

1960,-it was announced that the company an¬
ticipates, that in order to carry out its 1960 construction
program it will consummate long-term financing during
the year to provide additional funds in the approximate

March

secondary offering might

Underwriters

summer.

West Ohio

y

VJune 24,

$100,000,000. Proceeds — Together with
private
placement ' which
is
presently being worked on by this company's bankers,
will be used for expansion of the company's jet fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman Brothers, all of New York.

& Co.
a

at

$190,000,000

(jointly).
reported that

Bros.

obtainable. Office—2300 Linden

was

lyn, New York.

only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA

Electronics, Inc.
13, 1960, it was reported that the filing of about
$2,000,000 of common stock is being discussed, and may
occur sometime soon.
The company is currently mar¬
ket-testing a new electronic table-top stock quotation
board. Office—Los Angeles, Calif. Underwriters—Carl
M. Loeb, Rhoades & Co. and
Paine, Webber, Jackson &

was

Salomon

and

rants, and Hughes Tool Co.

June

March 11 it

Co.

&

tion

to

April 8 it

Oct. 4.

(Jos.y^chlitz

Securities

any one

Trans World Airlines, Inc.
was announced that the company plans to offer
to its stockholders $100,000,000 of subordinated income

'

Scantlin

Curtis

Waldbaum, Inc.
' ' v
/' V
May 11 it was reported that public financing is being
contemplated by this supermarket chain. No confirma¬

v

(jointly); Chase Manhattan Bank and Morgan Guaranty
Trust Co. of N. Y. (jointly); and Blyth & Co. and J. C.
Bradford & Co. (jointly).

Diego Gas & Electric Co. (10/4)
April 8 it was reported that $25,000,000 of bonds is expect¬
ed to be sold. Underwriter—To be determined by compet¬
itive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fenner
& Smith (jointly); Lehman Brothers and Salomon
Bros. & Hutzler (jointly). Bids—Expected to be received

,

to August, 1959, au-

have $750,000,000 of rev¬

to

outstanding at
offering, expected

Union

White Weld & Co. and Shields & Co. (jointly);
Loeb & Co.; Salomon Bros. & Hutzler, Eastman

San

on

Congress

bonds

public

Gas &

that the company has filed an application with the

from

time, it plans its first
be about $50,000,000, for
sometime in the Fall, * May 13 it was announced that
about $50,000,000 of additional revenue bonds will be
offered in the Spring of ^1961. The type of bond issued
will depend on market conditions. Proceeds—To finance
construction of new generating capacity. Power Financ¬
ing Officer: G. O. Wessenauer. Financial Advisor: Leh¬
man Brothers. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., First National City Bank, of New York, Equitable
Securities Corp. and Smith, Barney & Co. (jointly); First
Boston Corp., Lazard Freres & Co., Eastman Dillon,
enue

private

•

—

Tennessee Valley Authority
20 announced that, pursuant

Inc.
reported that this company plans to con¬

was

—

par preferred stock (100,000 shares). Under¬
White,
Weld & Co. of New York City
(managing).

V:

Thursday, August 4, 1960

Virginia Electric & Power Co. (9/13)
5 it was reported that approximately $25,000,000
first mortgage bonds will be offered for sale. Under¬
writers
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler; White, Weld & Co.; Eastman Dillon,
Union Securities & Co.; Stone & Webster Securities
Corp. Bids—Expected to be received on Sept. 13. In¬
formation Meeting—Scheduled for Sept. 8 at 11:00 a.m.
N. Y. time, at The Chase Manhattan Bank, 43 Exchange
Place, New York City, Room 238.

of $20

000

writer
'

the

.

Feb.

^Southern Nevada Power Co. (10/4)
Aug 2, 1960 it was reported that the company is planning
imminent registration of $5,000,000 of bonds and $2,000,-

July

.

y

—Birmingham, Ala.

Public Service Electric & Gas Co.

ed

notes through the issuance of first

mortgage bonds and other debt securities.
The timing
of the issue or issues was not stated in the report. Office

at 2:30 p.m. at

.

566,899

For Cent

Rate of

(000)

1,118,236
317,252
2,191,304
74,688
1,246,347

$ 15,670
60,666
14,879
86,932
3,823
48,218

$5,514,726

$230,188

Actual

Interest due

(000)

Return

2.76

$ 12,720

2.24

5.43

27,761

2.48

4.69

14,810

4.67

3.97

86,932

3.97

5.12

3.87

3,823
48,218

3.87

4.17

$194,264

3.52

~

5.12

Volume

192

Number 5974

.

.

The Commercial and Financial Chronicle

.

(491)

vidual Commercial Banks, and Is

Businessman's

the Farm

ing

Federal

—

Kansas

Cambridge Books, Autumn 1960—

City,

Reserve

Loss

and

State

Program, 2 West 45th Street, New
Union Commerce Building, mem¬
York 36, N. Y. (paper), $2.50 for
bers of the Midwest Stock Ex¬
10 copies.
change.

Expense

Report
(printed

—

Dept.,
William Street, New York 38,

Urban

Office
Management, 1960 Bibli¬
ography — National Office Man¬

Agency,

Field Serv¬
Willow Grove, Pa.,

Division,

New

York

17, N.
:' ;

'request,
Economic
ment

Y.

Oversea

Investment

in

Australia

on

;V

'

to

—

Invest¬

Co.,
1794A
Chicago
13,

Avenue,
request).

Montrose

111.

(on

A

Report

the

on

European Economic Community—
The First National City Bank of
New

York, New York

15,

N. Y.

Highlights

State

Department

—

Superintendent

—

of

of

Docu¬

ments, U. S. Government Printing
Office,
Washington
25,
D.
C.
(paper), 20 cents.
Foreign

Secretary

(May

Deposits—A

Time

Study

of

Regulation Q as it applies to
Foreign Time Deposits — New
York Clearing House Assoc., New

York, N. Y. (paper).
Guide to Area Employment Statis¬

Report

25, .1960)

Ilerter's

to

Report

Study

year

Plans

S.

High-Level

seas

in

Manpower

Subsidiaries:

Brazil

of

Department

Shear eru—

Over¬

in
C.

Industrial

Relations

Section, Princeton University,
P. O. Box 248, Princeton, N. J.
(paper), $3.00.
Hospital

Charges

and

Use

By

the Indiana Study of a Blue Cross
in
1956 — Monroe

Population
e r n e r

Information

Health

—-

Foundation, 420 Lexington Ave.,
New York 17, N. Y. (on request).
Industrial Production:
sion—Board
Federal

of

1959

Governors

Reserve

System,

Revi¬
of

the

Wash¬

ington

25, D. C. (paper), $1.00
(quantity prices on request).

Labor and the Public—Maxwell S.

Stewart

phlets,
York
Life

—

Cross
State

State

York

New

—

in

of

Affairs

Public

Fact

Life

Pam¬

Book,

of

Rationale
tion
Jr.

David

and

W.

Williams,

Monthly

Review
of

^

Act

of

Federal

Re¬

City—July

containing
articles on
and
Earnings at Indi¬

Growth

of Trade, Common¬
Australia, Melbourne,

(paper).

—

cents

outstanding

stock of this Corporation has

been declared, payable Sept. 1, 1960 to

stockholders of record

at

the close of

business August 5, 1960.

JOHN F. SHANKLIN

Mo.—David

UNION

CARBIDE

and

today declared a
shillings jier share on

Dempsey-Tegeler &

Co.,

Ordinary Shares of the Company pay¬
able September 1, 1960.
The Directors authorized the distribu¬
tion of the said dividend on September 13,
1960 to the holders of record

of business

on

shares

can

at

the close

September 6. 1960 of Ameri¬

issued

under the terms of the

Deposit Agreement dated June 24, 1946.
The dividend will amount to approximately
$2.10 per share, subject, however, to any
change which may occur in the rate of ex¬
change for South Africa funds prior to
September 1, 1960. Union of South Africa
non-resident

CORPORATION

A

Directors

shareholders

tax

at

the

rate

of 6.45% will be deducted.

By Order of the Board of Directors,
F. A. SCHECK, Secretary,

C.

New York, New York,

July 27, 1960.

with

affiliated

17 East

National

~

Distillers

Street.

10th

NOTICES

DIVIDEND

IPE-PPE-R.E-LL1

AMERICAN

Chemical

books

remain

will

DIVIDEND

regular quarterly dividend of Seventy-

five Cents (75c) and a year-end extra divi¬

NOTICE

DIVIDEND
The

payable October 1, 1960 to Stockholders of
record at the close of business September 16,
Transfer

A

dend of One Dollar

July 26, 1960 a quarterly dividend of
and three-quarters per cent was declared
the Preferred Stock of this Company,

1960.

Boston, Massachusetts

264th

Corporation

STOCK

PREFERRED

COMPANY

ITabIicsI

CAN COMPANY

On

PEPPERELL
MANUFACTURING

GO

and

Board

clared

30$

open.

Checks will be mailed.

a

per

has

Directors

of

ness

of

August 8, 1960.

Trust

Company,

The transfer books will not

Colony

Massachusetts,

Frederick D. Strong, Secretary

July 29, 1960

August 11, I960.

on

Boston,

Dividend Disbursing Agent.

September 1, 1960, to stockhold¬
of record

share have

Checks will be mailed by the Old

the outstand¬

on

per

stockholders of record at the close of busi¬

de¬

quarterly dividend
share

($1.00)

been declared payable August 15, 1960, to

ing Common Stock, payable on

JOHN R. HENRY, Secretary

close.

PAUL C. JAMESON

July 28,1960.

Treasurer

PHELPS DODGE
of

Board

September

the

record

per

able
ers

$1.50

or

1960
October 6,

••••••••

per

share

PACIFIC
FINANCE CORPORATION

to

DIVIDEND

a

CORPORATION

for

1960

STOCK,
payable
shareholders of
1960.

20,

declared

Also

30,

ONE-HALF

and

ONE

of

PREFERRED

on

October

declared

has

Directors

ending

quarter

(ll/2%) PER CENT

Operations Abroad
Symposium — Tax Institute
Incorporated,
Princeton,
N.
J.
(cloth), $6.00.
and

—A

munity

the

on

(Special to The Financial Chronicle)

DIVIDEND

of

of

as

$1.°°.

wealth

NOTICES

,

amended in
1959.
A
Management
Guide—
Waldo E. Fisher, Industrial Rela¬
tions Section, California Institute
of Technology, Pasadena,
Calif.,

York 22, N. Y. Australia

Kansas

share

per

capital

Seato—South-East Asia
Organization, P. O. Box
No.
517,
Bangkok,
Thailand—
(paper).

University

Bank

quarterly dividend of Ninety

(90(f)

of

Taft-Hartley

&

Street.

Dividend No. 55

Treaty

488

(paper).

issue

of
North
Carolina,
Chapel Hill, N."Cr (paper), $1.50
(quantity prices on request).

C.

Hornblower

Federal

Board

—

University

H.

*

O'okiep Copper Company

The

Secretary and Treasurer

one

Taxation

75

dividend of fifteen

A

Deitsch

Dempsey-Tegeler Adds

on

formerly

and

Limited

CARBIDE

'^V;

Supply Industry—Richard

agement — Charles F. Poston—
School of Business Administration,

with

now

Weeks,

UNION

Washington 25, D. C. (paper). 300.

Story

is

man

DIVIDEND

Sharp

Colo.—Arnold

Company.

was

Co.

BOSTON, Mass.—Stuart W. Zim-

»

Dept.

(Special to The Financial Chronicle)

of
Documents,
U. S. Government Printing Office,

Restricted Stock Options for Man¬

&

the

Superintendent

Reactor

He

Now With Hornblower

new

Bluestone—

W.

Square.
Reynolds

DIVIDEND NOTICES

112 State Street,
(on request).

Joins Schmidt,
DENVER,

G.

Godfrey,

(Special to The Financial Chronicle)

edi¬

a

State

York

Commerce,

In¬

Transporta¬

Federal

Policy—Ernest

1960— Department

Insurance,

Madison Ave., New

serve

starting

on

Department, 123 William KANSAS CITY,
Combs
is
now
St., New York 38, N. Y.

East

Insurance

Institute

guide

business—New
of

revised

Business—1960
of

with

(paper), 150.

Washington 9, D. C.

the

38th Street, New United States Investment in Aus¬
16, N. Y. (paper), 250.
tralian Manufacturing Industry22

Planning Association, 1606
Hampshire Avenue, N. W.,

ers

Diagnostic Category: A Report on

L

New

Research,

John

—

tional

surance

Laborv A.^Tybout

Experience

Mexico

and

Statement

Mass.—Gordon

now

Wainwright & Co.

Crop PORTLAND,, Ore. —Stephen
R.
by the Walker has been added to the

Findings of two-

Eight Blue
New York

of

Serving

Residents

Care

with

(Special to The Financial Chronicle)

Land

27,

Prepayment for Hospital

Depot

With Foster & Marshall

to

Bureau of Business
College of Commerce
Bureau
of Labor
Statistics, 341
and
Administration,
The
Ohio
Ninth Avenue, New York 1,: N. Y.
State University, Columbus, Ohio
(single copies on request).
v
■(paper).
tics—U.

C.

D.

is

Hamilton, Magnus & Co., Inc., 27

Pro¬

1960)—Superinten¬
is now
with
Schmidt, Sharp &
dent of Documents, U. S. Govern¬
ment Printing Office, Washington Co., Inc., 818 Seventeenth Street.
He was formerly with Purvis &
25, D. C. (paper), 15 cents.
(May

Coogan

Agriculture Committee of the Na¬ staff of Foster & Marshall, South¬
tional Planning Association—Na¬ west Sixth Avenue at Oak Street.

and

Senate Foreign Relations Commit¬

.

Foreign Policy Developments 1959
—

Eisenhower's

Nation

New York State:

(paper).

from

of

Albany, N. Y.

4

President

tee

f

-

Today:

Europe

Saltman —Public

cents;

the

Industrial

Jules

Affairs

Equipment

General

Withdrawal

tion

25

—

25,

Your

University Press, 32 West 57th St.,
New York 22, N. Y. (cloth), $7.50.
Handbook

Washington
(paper), 50 per copy.

Paraplegia: A Head, and Two Big
—

Assistance

gram—Housing and Home Finance

Wheels

Pamphlets, 22 East 38th
Cambridge St., New York 16, N. Y. (paper),

Background

H. B. Hose

—

in

(paper),

Planning

Production—A

—Manufacturing
Industries
Ad¬
five
Council,
Department
of
languages)—Corporate
In¬ visory
formation Office, McCann-Erick- Trade, 52 William Street, Sydney,
N. S. W. (paper).
;
h
son, Inc., 485 Lexington Avenue,
gains

Companies

N. Y., $1.00.

ice

on

Ratios—

Insurance

sheets

LEXINGTON,

Power

York

$5.00.
Incentive

(Special to The Financial Chronicle)

Projects— CLEVELAND, Ohio.'—Leonard A.
Rapaport and Thomas E. Tidd
prepared by Electric
have
become
connected
with
Public
Information
Gunn, Carey & Roulston, Inc.,

Nuclear

1959

N. Y.

international

S.

With Godfrey, Hamilton

(Special to The Financial Chronicle)

25, D. C. (paper).
U.

Gunn, Carey

New

agement Association,

of

of

Depart¬

*rf"

Two With

Fact

—Cambridge University Press, 32
East 57th Street, New York 22,
Decade

Bank

Research

Services, Bureau of Public Affairs,
Department of State, Washington

ment, Kansas City 6, Mo. (paper),
on request.

123

Publications to be issued this fall

Real-Estate Boom Ebb¬

39

of

The Board

$.45

DIVIDEND NOTICE

share on COMMON STOCK, pay¬
September 1, 1960 to sharehold¬
record August 11, 1960.

of

A

of

G. F. Cronmiller, Jr.

cents

share on

per

stock

of Directors has de¬

third-quarter dividend

a

of Seventy-five Cents (754)

quarterly dividend

the

share

on

the

per

capital stock of this

($10 par value)

Corporation, payable September

stockholders of record Aug. 15,

9,1960

to

stockholders of record

I960, was declared by the Board

Com¬
address

World

Reprints of an

65

payable on September 1,1960, to

1960

July 28,

regular

common

Vice President and Secretary
Pittsburgh,

clared

of Directors on July 27,

August 15, 1960.

1960.

by Christian A. Herter, Secretary
of

State,

Pittsburgh

at
—

the University of
Office of Public

M. W. Urquhart,
Treasurer.

——FLINTKOTE—h
>

DIVIDEND

<

b. C. Reynolds,

Secretary

<

NOTICE

July 27, 1960

+••••••••••••••••*
Manufacturer of the Broadest IAne

Products in America

of Building

AMERICAN

THE FLINTKOTE COMPANY

BANK NOTE

quarterly dividends

New

YALE &TOWNE
290th

N. Y.

York 20,

have been declared

as

371/20

COMPANY

share

4

$4 Cumulative Preferred Stock
$1

Preferred Dividend No. 218

Common Dividend No. 208

share

per

$4.50 Series A Convertible Second
Preferred Stock

quarterly dividend of 750 per share (1M>%) on the
Preferred Stock for the quarter ending September 30,1960

$1.121/4

A

share on the Common Stock
have been declared. Both dividends are payable October 1,
and

a

dividend of 30^ per

1960 to holders of record

September 2, 1960. The stock

transfer books will remain open,




A

15,

ord

at

are

share

payable Septem¬

1960 to stockholders of rec¬
the close of business August

19, 1960.

JAMES E. McCAULEY
Treasurer

v

*

Louis T. Hindenlang

July 27, 1960

These dividends
ber

per

V". Secretary and Treasurer

August 3, 1960.
*

*

COMMON

Oct.

DIVIDEND

No. 109

consecutive

<

1,1960

Record date:

of Directors to¬

The Board

Sept. 13,1960

day declared the following
dividend:

Declared:

share on the
Stock, payable
September
15,
I960 to
stockholders
of
record
at
the close of business
August 15, I960.
22 y2 cents per

July 28,1960

Common

Tbe Goodyear

Elmer F. Franz
Vice President

and Treasurer

Tiro & Robber Co.

By R. L. Miller,

Secretary
TQ th

Share

Payable:

the

YALE & TOWNE mfg.co.

Lock and
1

a

follows:

Common Stock*
45 cents per

Quarterly Dividend

August 2, I960

dividend

THE GREATEST NAME IN RUBBER

Hardware Products since

Materials Handling Equipment
Cash dividends

1868

since 1875

paid every year since 1899

-

40

The Commercial and Financial Chronicle

(492)

.

.

.

COMING

WASHINGTON AND YOU
^

.:

BEHIND-THE-SCENES INTERPRETATIONS
FROM THE NATION'S

Thursday, August 4, 1960

i EVENTS

.

CAPITAL

IN INVESTMENT FIELD

WASHINGTON,

C.

D.

running team-mates
*p

running). Before Tuesday, Nov. 8,
8,000,000 voters go to the
election
polls for
the
first
time
in
their
lives,

Presidential

by individuals,

tions

and

by

Both

-

at

nomination

:

rightfully point with pride
respective platforms.
Both would continue and ex¬

neither

of

far

as

concerned

John

F.

-

B.

wanted

and

It

of

Governors

Many professional politicians
longtime observers of the
Washington
scene
had main¬

four

effect

in

chance

one

that

Senator

take

the

there

that

second

spot

that

vehement

take the No. 2
The

he

on,

sometimes get
view from Capitol

Hill.

There

States

President,

Vice

door

is

only

Your

next

until

neighbor

did

of

has

Nixon

word for

been

their

household

has taken

The

in

choosing Henry Cabot Lodge
could

a

the

occupy

House with

Republican

as

Southern

White

to

I

past.

There

going

one

who is
ber.

be

of

one

a

here

43;

most

Alabama

the

D.

for

no

sure

been

other

the

if

win the

doubt

next

Pres¬

ing

what

was

did




his

8,

become

didate, but they do not have a

Five

national hero to head the ticket

four

states

nearly

but

will

every

Dixie apparently
battleground.

a

Republican

went

Republican

to

then,

of

had

is

good

news

in

both

from

an¬

The

more

or

the

themselves

This

is

haps
not
a

a

This is all good for

try,

un¬

:

preference
elections

idential

clear liberal

is

"There

versus

no

conservative

parties,

no

one-party monopoly on interest
in industry, labor or agriculture
The candidates themselves
take on greater importance than

cam¬

.

.

party

that the
in Pres¬

traditions

or

even

intended

to

been

most

faithful

to

re¬

to be on the

flect the "behind the scene" inter¬
pretation from the nation's Capital

can

be

for

taken

granted

Barbara, Calif.)
Board

and

any

may

or

may

the "Chronicle's"

longer.

Invest¬

of

Governors

of

fall

Association

Bankers

meeting.
(Philadelphia, Pa.)

Sept. 23, 1960
The

Club

Bond

of

Philadelphia
at the
Huntington Valley Country Club,
Abington, Pa.
•
35th

Annual

Oct. 5, 1960

New

York

Field' Day

(New York City)

of Investment

group

Association

Bankers

dinner

annual

America

of

Waldorf-

the

at

Oct. 10-13, 1960

(Pasadena, Calif.)

Association

National

not
own

Bank

of

Women 38th annual convention at

the Huntington-Sheraton

Hotel.

Oct. 11, 1960

(Detroit, Mich.)
Group of Investment

Michigan

Bankers Association
Oct. 12, 1960

Northern

ing-

\

meeting.

(Cleveland, Ohio)

Ohio

Bankers

ment

Group

Invest¬

of

meet¬

Association

-

Oct. 13, 1960 (Cincinnati, Ohio)
Ohio Valley Group of Investment

Bankers Association meeting.

Security
is

out. No part of the country

or seems

16 at

Sept. 21-23, 1960 (Santa

October 15, 1960

[This column

way

vanished,

City Club; field day Sept.
Country Club.

Kenwood

plat¬

forms."

either

has

added:

line between the two

the coun¬

it means

because

one-party

Star

The

handful of states that do
when they ever had
candidate

closer

drawn

together in their basic interests
objectives even though they
differ on methods and approach.

recall

Presidential

have

and

addresses in

states.

Star-

Washington

points out that the two parties

Ken¬

Ohio)
Municipal Bond Dealers Group of
Cincinnati annual outing — cock¬
tails and dinner Sept. 15 at Queen

Astoria.

this evolution in American poli¬

Campaign Indicated

Sept. 15-16, 1960- (Cincinnati,

years ago.

did in 1952 and 1956.

one

of

each

have a

not

Until

New

York

Dance

(New York City)

Traders

in

the Biltmore

Association

annual

the

Fall

Grand

of

Dinner

Ballroom

of

Hotel.

coincide with
views.]

Attention Brokers and Dealers:

TRADING

MARKETS

Botany Industries
Indian Head Mills

„

Official Films

Southeastern Pub. Serv.

Carl Marks & Co. Inc.

the

FOREIGN

Our New York telephone number is

CAnal 6-3840

helped to free the slaves.

SECURITIES SPECIALISTS
~

20 BROAD STREET

The

like

probably

stay Democratic next

trained, hard-hitting, able can¬

heard of before. There are per¬

andMississippi,

from

GOP the

election.

The chief executive, in mak¬

called the Solid South. The

November

.

allegiance

had

third term,
or no

—

South may

down in

Astoria.

party of Abraham Lincoln who

could

Republican
a

there would be little
would

hand,

states

not always
Republican. The South was

state

make

single

a

Democrat.
them

States—

change their political

to

decade. And

recently,

Eisenhower

out

paign in their state.

others,

voters

going to win in Novem¬

idential

without

meet¬

-

ing at the Starlight Roof, Waldorf-

ment

do

they

but

lican,
go

start

farmland

great

is

traditionally have been Repub¬

nedy and Nixon that they plan
to have organizations in all 50
states, and plan to personally

*

and

the

knows

now

the

Democrats

not

Smith

Middle-Western

The

Sen¬

as

race

Margaret

overconfident. They have a well

There

went

1940s wooed most of the Negro

standard bearer for
who

is

delegates

Although there are no imme¬
diate
figures available, there
probably were more Negro del¬
egates at the Democratic Con¬
vention in Los Angeles than at
the Republican Convention
in
Chicago. President Franklin D.

tickets

no

can

in

battleground in the

a

Chase
seeking reelection.
ator

perr

can

state

current Senatorial

behind in

Lodge

million

nouncements

from

Roosevelt in the 1930s and early

On

have

alternates

doubt

of

Dwight

the

members

upcoming campaign is

said

as

from

ago. ',

can¬

51;

be

to

the

Jfres-

Kepubli-

the

tics?

single Negro delegate. This was
unheard of not too many years

.

seems

to

was

Re¬

States like Texas and Florida

compared

Kennedy

stirring in many
as

tour

Johnson

47;

that, the

the

young

Presidential

some

58.

the

of

were

state

Chicago

and

their leader.
of

there is

^

Gruelling

a

Negro delegate.

with, but not all of them have
always seen eye-to-eye
with

are

-•»

to their cause they are

like they

handful of Negro

a

and

Southern

among

Nixon

ago

years

portion

only

were

part a lot of Democrats to work

Lodge

many

States

[delegates

Senate. Of course, in the
Senate he has had for the most

the

and

race. In 1960, 100
Abraham Lincoln
nominated at Chicago, there

was

in the

in

convention

Nixon

after

years

Kennedy, in tapping
Mr.
Johnson
as
his
running
mate, also chose a man that has
proven his leadership qualities

with

overlooked

the Southern states. Most of the

ages

Mr.

publicans

of the Negro

dignity and leader¬

Senator

The

in Number

delegates

publican

man

win.

didates

-

Vice

that

says

few

going " Republican

What have been the reasons for
too

substantial

ship if something should happen
to Mr. Nixon, assuming of course
that
the
Nixon-Lodge
ticket
should

was

nominated

Not

Nixon

chose

.

Lodge.

Two Good Running Mates

that

the

at

that

mate

■

This is one time that the Re¬

of the Negrobrings to light another

citizen

position in the United

running

a

to rally

question

observation that

States.

his

«

once

several years
its rightful mean¬

President

and

suade

con¬

Maine, for instance, has a Dem¬
ocratic governor, and a women
Democrat candidate is making

.

ticket is starting

Nixon

have

Presidential elections, but

sunk.

Negro Delegates Few

ing—the second most important

Vice

Nixon

states.

and Vermont

tinued

Presidential sweepstakes
election. Therefore, unless Mr.

ability.

and

means

past

on

Maine

the big

best of their

the

to

wonder

a

the

elective

votes

little

ident
can

Congressional districts can de¬
by their vote how the
election will go. For this reason
the
politicians naturally woo

long time. The Vice
Presidency of the United States
during

ticket?

dyed-

Republican

Repub-

are

For this reason alone

termine

President

a

.

rock-ribbed,

Democratic gov¬

there

than

licans.

Negro citizens in more than 50

recently

Vice

more

are

ernors

be

in-the-wool

■

Democratic

Johnson

Majority Leader was and
particularly care.
name

there

to

used

And

today.

Senate

and

House

cities vote for the Kennedy-

ern

not

The

civil

with

question arises:
Will the Negroes of the North¬

probably did not know who the
Senate

GOP

Republican Party is definitely
minority party in this country today. Indicative of this is
the one-sided majorities in the
the

States

Northeastern

The

Therefore the

United

There

100.

the

dealing

cratic planks.

Senators, and Johnson is

of

one

100

are

that

The

A; ;

;v.

annual dinner and business meet¬

the

rights.
planks are by no
means
weak, but they are not
nearly as strong as the Demo¬

in the

newsmen

ing.

down at the Stock Exchange

Sept. 14, 1960 (New York City)

».

Capital

one-sided

one

not

(Denver, Colo.)

Association of Customers' Brokers

Republican platform, as
was the case, at the Democratic
convention in Los Angeles, was

politicians in the Nation's

Nation's

wouldn't ask him how things
today."

suggestion—I

a

were

controversial plank

The most
in

of

Hilton

-

Association

Bankers

ment

politicians to the contrary.

position.

Capital and the
a

would

"Just

substantial part are

the

on

Board

Statler

the

at

Exchange

the

of

Sept. 12-13, 1960

principles

of

meeting

Rocky Mountain Group of Invest¬

and for a
used to run
despite statements by some

ments

would

;

Stock

of

,

Hotel, Hartford, Conn.

people, the high-sounding plat¬
are
exaggerated
state¬

had

They

years.

forms

was

thousand

a

Johnson

Firms

Fortunately, for the American

maintained
that the post of Senate Majority
Leader
was
just as important
in a way as Vice President. Mr.
Johnson
himself was just
as

i

Sept. 12-13, 1960

posed to stand on for the next

ticket.

,

at

Asso¬

Traders

Convention.

Annual

ocratic ticket.

the Dem-

on

the Sheraton-

Security

Association

not

,

ciation

some

and

-

National

would

shame

with

blushed

have

Texas

In¬

Association

(Sun Valley,

Sept. 11-14, 1960
Idaho)
:

the Re¬

Republicans

many

of

Group

Bankers

annual meeting at

more respectable.
not too many years ago

was

that

Northwest

vestment

is

publicans

got the Vice Presi¬

Sept. 9-11, 1960 (Portland, Oreg.)

parts of the current plat¬
form—the one the party is sup¬

in

Colum¬

the

at

Portland.

forms the one issued by

the fact that

Johnson

Lyndon

tained

Country

plat¬

two

the

of

However,

candidates

as

was

dential nomination
'

and

Country Club.

Pacific

and

handouts

pand
Federal
spending.

by their parties presented
a
surprise. The only element of
was

Frolic"

"Summer

bine

their

to

the

and

Republicans have come up with
formidable tickets, although the

[surprise

Clair Inn

can

Democrats

the

Kennedy nor Richard M. Nixon
-

St.

Aug. 18-19, 1960 (Denver, Colo.)
Bond
Club
of
Denver
annual

~—

majority of
the
the Republicans

a

the

Club, St. Clair, Mich.

Democrats nor

themselves.

(Detroit, Mich.)
summer outing

Basis Club annual

Neither

organiza¬
candidates

the

Aug. 12, 1960

cheered

from

Neither Platform Flattering

there will be millions of dollars

.spent

Pres¬

as

wildly
by
delegates
practically every state, and
by the rank and file of citizens
of the Mid-Western metropolis.

when

:

Chicago

to

ident of the United States, was

off and

are

visit

last

Both

—

Presidential candidates and their

.

Minority Party

NEW YORK 5, N. Y.
TELETYPE NY

TEL: HANOVER 2-0050

LONER 8 CO.
10 Post Office

get a majority of them

to switch back to the GOP, be¬

1-971-

Investment Securities

Republican Party would

to

cause

•

Square, Boston 9, Mass.

Telephone
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they need their votes. The

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BS 69