Full text of Commercial and Financial Chronicle : August 6, 1959, Vol. 190, No. 5870

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

UNivtftStTY
Of

ESTABLISHED 1S39

MICHIGAN

AUG 10 1959
PCMOOKM
REAOING ROOM

B*C. V. 8. Pat. Office

New York

Number 5870

Volume 190

editorial

of

a

By WILLIAM McCHESNEY

his sometimes disturbing, sometimes merely
comical way on the island of Cuba. Whether he

defense from Mr.

this

trends

are

a

predominated in

chief

announces

and he

In

of his venture.

Fed

the

in

is

Committee

importance

[Tables

capital market.

appearing

markets

maximum

i

pages

25 and 31

f

show FuncTs
common

stock

and other securities transactions; and individual common

considering—the
freely
competitive

to

on

comparative investment positions; total

now

of

airlines, oils, and utilities. Enlarged
foreign issues.

interest in

long

opening statement, I would like to comment
aspect of the problem the Joint Economic

respects

Latin-American countries where confiscation and

real growth

one

on

different from that to be found in various other

some

freeze

bilize the economy and the

this

first

would:

our

economy's over-all liquidity and unsta-

terms, increase
:

tions noted.

to

as

Further, the monetary

production which tilts

sales

short-term

with

so

important revision in the Board's

an

index of industrial

time when

The state of affairs in Cuba is in

com¬

suggestions that the Fed buy long-terms and offset them

supplement the dealers market.

What is clear is that he has set
path which so many times in the past
at

substantial liquidation of

offsetting acquisitions. Stepped-

figure upward for the past decade. In Mr. Martin's view,

of

agricultural economic
peculiarly unfavorable for the success

so

companies' June quarter port*

issues. Increased share redemp¬
Top favored issue again was Ford, followed
by GM, Jones & Laughlin Steel, Aluminium, Ltd.,
American Viscose, and Pittsburgh Plate Glass. ATT most
widely liquidated issue. Industry groups favored were
the aluminum, automotive, steel, and textile.
Selling

organized exchanges to improve their facilities

the subject would be hazardous

has led to failure and in fact to disaster,
has done

of improve¬

areas

ment, in the present over-the-counter market; and invites

stage.

foot upon a

Analysis of investment
folio operations reveals
mon stocks importantly
up activity in Treasury

Martin, who adds the policy is always
He also supports recent findings

regarding the efficacy, and suggested

regime that is typical of the communists, but defi¬
at

By A. WILFRED MAY

subject to change.

to be almost too unsystematic and

nite forecasts on

regarding short-term securities, par¬
Treasury bills, receives a cogent analytical

ticularly

the sort of day-to-day grind that is

to the establishment of the kind

necessary

Copy

As Bull Market Rolls On

The Fed's position

fledged communists, as did the "agrarian re¬
formers" of China, the future only can tell. Mr.
Castro appears

MARTIN, JR.*

Chairman, Board of Governors of Federal Reserve System

regime will in the end come to be full-

too averse to

a

We See
It
And Open Market Operations Funds Retain Cantion

long list of "agrarian reformers"

goes

and his

Cents

Quarterly Investment-Company Survey

Maiket for U.S. Securities

As
The latest

Price 50

7, N. Y., Thursday, August 6, 1959

stock transactions by

industry groups.]

During the June quarter, while the stock market con¬
tinued on its merry way to all-time peaks, the expert
fund managers on the whole maintained their caution

economic

redistribution of wealth have been tried without

In so doing, I do not wish
to understress the importance of any

exhibited since the turn of the year.

benefit to those in whose behalf revolutions have

other conditions necessary to healthy

in

economic

balanced

growth.

professedly been undertaken, but basically the
same fallacious
suppositions rule and the same
errors

are

lie in the
are

in
at

which
in

attempt

home.
are

to

settle

very

others

are
also the same obstacles
often overlooked by the do-gooders

that

involving what is euphoniously called foreign
investment or foreign loans. They, therefore,
page

of

opinions

ous

based

markets

free

of

to

out.

continued

This

the

situation

in

established

the first quarter, in

and

essential

are

This is highlighted
categories as the

those management

funds, which have fuller discretion of choice
equity securities.
the case of the balanced funds, buying and selling
portfolio common stocks practically cancelled each

other

W.

McC.

Martin, Jr.

sharp contrast with the 40% buying
excess
which prevailed during the latter part of last
year.
Moreover, the open-end stock funds continued
their sharp reduction in the net acquisition of equities.
Their excess of stock purchases over sales shrank to
51% from 71% in the first quarter of 1959, and 104%
in

the vital

and vigor¬

performance of our economy. No one would urge that

the

final

quarter of 1958.
Similarly, in the case of
companies the excess of purchases nar¬
1.8% from 19.5% and 58% in the previous

closed-end

the

rowed

to

■

"

Continued

.

*A

32

by Mr. Martin

statement

Washington,

tee,

D. C^,

leading

on

page

32

For the aggregate of the 86 investment com-

quarters.

before the Joint Economic Commit¬

Continued

July 27, 1959.

NEXT WEEK—The "Chronicle"

ISSUE

RAILROAD

DEALERS

volume of real

broadly

upon

of

In

and

depends

who would solve many of the
problems of mankind by various dubious schemes

on

a

activities

between fixed interest and

justified confidence in a reasonably
stable dollar.
No one would deny

this country

Continued

if there

others, it is

investment sufficient to
support continuous renewal, adjust¬
ment, and expansion of our total
capital resources.
The maintenance
of adequate saving and investment
saving

They
so

Indeed,

maintenance of

the

problems

real

growth.

essential for sustained growth

one

that stands out above all

being made. The impediments which
path of the Cuban man-on-horse-back

at bottom those which have thwarted

their

is

the

of

Aug.

13

will

feature

individual carriers and the industry

as

whole.

a

24

page

official

the

Railroad executives, along with that of the ICC Chairman, on the out¬

look for the

on

State, Municipal

__

171

and

U. S. Government,

Public

Housing,

State and

Lester, Ryons & Co.

UNDERWRITERS

Municipal

and

623

investment

Pasadena.

THE FIRST NATIONAL CITY BANK

Burnham and
MEMBERS NEW

15 BROAD
CABLE:

YORK AND

AMERICAN STOCK

STREET, NEW YORK 5,

N.Y.

014-1400

Bond

Teletype: NY 1-708

Dept.

Active

Dealers,

New York Stock

Exchange

Markets Maintained
Banks and Brokers

CANADIAN
BONDS & STOCKS

Block
Commission

goutflUXAt

Stock

Exchange

Orders

STREET

YORK

4, S, Y

COMPANY

DALLAS




CANADIAN

Teietyoe

BROAD

DIRECT

Invited

Inquiries

Canadian

NEW

BANK

Correspondent—Pershing & Co.

canadian

Members

FIRST

New York

securities

1833

ESTABLISHED

25

Chase Manhattan

Southern

Securities

EKCHANOE3

•

To

American

on

THE

Riverside,

Santa Monica

DEPARTMENT

TELETYPE NY I-ZZ62

COBURNHAIW

T. L. Watson &. Co.

Securities

Inquiries Invited
California

.Net

Investment

Pomona, Redlands,

San Diego, Santa Ana,

OF NEW YORK

Company

Distributor

Dealer

BOND

Encino, Glendale, Hollywood. Long Beach,

BANK

•

Exchange

Offices in Claremont, Corona del Mar,

CORN EXCHANGE

7

Stock Exchange

Members Pacific Coast

SECURITIES

CHEMICAL

Public Housing Agency

17,

Bonds and Notes

Associate Member American

telephone: HAnover 2-3700

30 BROAD ST., N.Y.

Los Angeles

Members New York Stock Exchange

of

bond department

Hope Street,

California

DISTRIBUTORS

Securities

Underwriter

So.

WIRES TO

Executed

On

•

PERTH AMB07

BROADWAY

NEW YORK

c

Municipals

(DEPARTMENT

NY

Dokeuoh Securities

1-2270

MONTREAL AND TORONTO

(orporatioti

GOODBODY 8e Co.
US

California

AH

Exchanges

MEM3ERS N0uV. vo»K Sr0CK EYCHaMGE
BRIDGEPORT

For

40

Exchange Place, New York 5, N. Y.

1 NORTH IA CALLE ST.

'

CHICAGO

'

Teletype NY 1-702-3

WHitehal! 4-816!

MUNICIPAL

3QND

DEPARTMENT

iSuttk of America
national

300 Montgomery S:.,

association

♦

San Francisco. Cilif.

-IT?**** t*0
»*2tvpm 4C

For

CUfUANSEATIC"
When it's

important to you to
of active
markets in a hurry, you'll find
our
large
and
experienced
trading department can be a^
big help,

^

The

Banks, Brokers, Dealers only

reach

a

Out' nationwide private wire
combined with

com¬

enables you to get the
possible coverage of the
want.

best

markets you

(participate and give their

for favoring

reasons

(The Articles contained in this fornra

they

eStt

be regarded,

t©

as am

Partner, Spencer Trask & Co., N. Y. C.
Members N. Y. Stock Exchange
Pullman Inc.

generally

the

In

high

sto ck
currently
prevailing, J
regard Pullman as being

market
would

those issues possessing rel¬
attrac¬

this

at

69, the shares
ranged
between

Stock Exchange

American

5

Teletype NY 1-40

4-2300
BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Cities

Private Wires to Principal

42

J.*.

the

is

profitable

more

building itself.

ear

The

current

of petroleum re¬

chemical

processing
Operations have expanded
steel, mining and pa¬

include

industries.

During

1951

Pullman

acquired

the
second
largest
builder of highway truck-trailers.
The

Phone: WHitehall 3-7830

largest division is Pullman-

Standard, the railroad

Teletype No. NY 1-2762

$3

dividend

the $4 payments could be

the

shares

car

manu¬

1959

over

and

are

at

per

\

.

has

cars

maintained

a

strong position in this industry.
—

Following the recession year of
1958, with its reduced sales, profit

Bassett Furniture Industries

margins and earnings, the
pects for 1959 and beyond
to

life Insurance Co. of Va.

Commonwealth Natural Gas

favorable

LYNCHBURG, VA.
LD 39

TWX LY 77

—5-2527—

Private

Wire

to

New

York

point

recovery.

In
1958,
sales
declined
16%
from $424 million to $354 million.
The reduced shipments and nar¬

profit

rower

STRADER and COMPANY, Inc.

earnings

pros¬

margins (4.1%
resulted in earnings

8.0%)

clining to $3.52
$6.67 in 1957.
Due

City

to

lating

the

usual

higher

■msf.

into

ship¬

were

still

quar¬

the

on

low

share

(including
non-recurring profit
of
60c)
compared with $1.31 in the simi¬
per

lar

1958

period.

Profits

for

the

second

half
of
1959, * however,
promise to show considerable im¬

SECURITIES
FUND OF BOSTON

provement.

(1) The M. W. Kellogg division
a backlog of about
$200 million
with foreign contracts more than
offsetting the past year's decline

has

Request

GENERAL DISTRIBUTORS

in

domestic

plant outlays. Plant
equipment expenditures are

and
now

KELLER BROTHERS

turning upward and

pected

cl)

CO., INC.

mo COURT STREET, BOSTON 9,

the

over

coming

Trailmobile,
lower

entered

which

operations

1959

with

sus¬

in

basic position,
operations, the
improving trend of earnings and
the prospective
income yield of

history.

of

of

doing

President,

he

made

the

on

his

Until

S.

real

difference

Richardson Co.

In

reduced

comparatively

estate

investment

present atmosphere of
low yields and high income taxes

ship or as
Despite the

the

stock of Kratter Cor¬

poration has double barreled
peal to in-

avail¬

<

ap-<
.

,

;

.

high

time

same

with

vantages; the
moderate

ly dividend,
equivalent to a

fo

96

having all Irs

nual

gives
7%

return

the

The

rate,
about a

of

on

the

eggs

it is

e«~ertmUy

"plus" factor

and

a

the

tion

attrac¬

taxes.

is

now

Weinberg

April

wants

to

turn of

capital.

one

Kratter

steady increase in value for many

should

significantly this

year

re¬

next.

BOENNING & CO.
Established

1914

ducing

sion should later reflect the

level

advantages

of

new

railroad

rising

years

rentals

slumped

proven

are

1529 Walnut Street

115-Broadway

Philadelphia 2, Pa.

Mew York 6, N. Y.
CO 7-1200
ATT

LO 8-0900

Teletype PH




30

Deliveries of freight
to

10,747

about

units

20,000 the

cars

last
year

year-

before.

from
Last

has

shown

a

and, where long-term fixed

orders.

car

property

to

be

not
a

a

factor,

strong

hedge.

Because

of

this

special

quality,

owners

has

inflation

intrinsic

of

real

are

of

dicates

number

1959

"-ay

when
seven

economy as a
n

«,

NOIDlird
M
Is

not

orders

offer

any

York 6,

N.Y

Green 9-0187

BOwling
an

for

..j

n

tlBS CO., LlO
w
»
or

solicitation for

securities

particular

to

RED

upwards

of

must carry on

Kratter syn¬

their

interests

vary¬
T%?\

exchanged for
interests was re¬

income

their

Your

CROSS

shares

syndicate

prodocinv

value. ApproxirrafHv P4% of
property units involved were ex¬
changed and plans are under wav

Over-the-Counter

Quotation Services
for 46 Years

acquire the remaining 16% mi¬

nority interests.
mon

stock

The

solved

the

of

use

com¬

nroblem

of

market liauidity and the v'rtue of

diversification

was

added

bv

tue

National Quotation Bureau
Incorporated

fact that syndicate members wTh
an

oCCIIf

61 Broadway, New

This

whole.

...

as

in

comm"" stock

lated

to

—

market

formed

was

exchanged

of

Stock

a

rea¬

any

Corporation.

constituted,

these

Most investors are aware of the

la^k

withdraw, since

a

2.000 owners of

The

Monthly

basket.

the

lock-up type investment.

The

divi¬

of

one

join, t^e investor faces

son.

he

afford

While syndicates

b i g

e

in

drawback

different nroblem if. f?r

present
T h

our

Digest, and our other reports
that give you a pretty clear
picture of the Japanese

Telephone:

investor o"

only

can

for

single property and
impracticable risk of

liquidity.
to

disad

basic

average

price of around
14.

Write

a

second

epsv

two

means

buy mto

faces

an¬

corporation).
return and the

advantage these syndicates
enjoy, they are afflicted at th?

8 cents month¬

cents

IN JAPAN

recently,
was

small

a

vestors. The

and

cover

Keyes Fibre Co.

earnings

Opportunities Unlimited

tax

common

of real estate own¬
ership in an expanding economy
and during a period of a widening
population curve.
Income pro¬

Trailmobile

help.

.

th

and

cost

to the average investor only
throughT the medium of syndicates
(a syndicate is a loose confedera¬

the

(3) The Pullman-Standard divi¬

Stouffer Corp.

we can

§Ut6RT 4. CAPtAN S CO.)

tion of individuals bound together
in the form of a limited partner¬

daoiuel

featuring interchangeable compo¬
nents.
Pricing
conditions - have
improved
in
this
business
and

i

Perhaps

be¬

able

[(ratter Corporation

dends not sub¬

line

ISSUES!

submit your offerings.

owner

SAMUEL WEINBERG

ject to income

new

a

capital are

ing amounts of

company's

can't find

INACTIVE

sale price.

Prospects

the

*

home for certain of your

2_;

stockholders
of

in 13 separate properties for

of

STOCKS

expense

the

to

distributions

tween

are
basically unique operating techniques of the
considering the high¬ real estate business enable these
program and strong accept¬ payments to be classified as a re¬

ance

Fischer & Porter Inc.

Bankers

INSURANCE

LIFE

If you

business

an

favorable

Continuing Interest in

Investment

&

111 Broadway,N.Y. 6 COrtlandt7-5680

a

owners;

way

A

Tokyo, Japan
Brokers

after the property is sold, the
is taxed for the capital gain

on,

better than 5%.

1958,

year-end backlog of orders in its

Yamaichi Securities Co., Ltd.

strong

diversification

largest

the

Inc.

of

commitments consider in g the

company's

is

(2)
tained

Telephone Richmond 2-2530

grow

ex¬

years.

MASS.

(Corner of Washington St.)

to

are

capital to the

"income

as

Affiliate

the

distributable

depreciation is classified

cost

a

these

vs.

de¬

a

MUTUAL

on

1959

side—$1.11

"or BOSTON '

Prospectus

of

non-railroad

(Kellogg and Trailmo¬
bile) possess favorable underlying "growth possibilities. I believe
the shares have attraction''for new

lag of trans¬

orders

ments, earnings for the first
ter

the

is

property
is

considered to be

Weinberg, Grossman &
Co., Inc., New York City
from
Members: N. Y. Security Dealers
—Association, Inc., New York City

share

per

while

stock

ing

"

allowable

it is
and,
therefore, reduces the amount of
income subject to income taxes.
Therefore, instead of being treated
as

divisions

piggy-back flat

company

return of

Because

of the railroads for
substantial quantities of new roll¬

—the

......

a

the

which

amount

need

of New York,

cash flow from the op¬

eration—ot

ahead, the company's
car
building division
benefit
from
the longer

should

the

ceeds

share

earnings.

range

on

interest

write

Yamaichi

the property, plus
its mortgage, ex¬

on

the

15.3

which

extent to

depreciation

information

or

Securities Company

Generally

The

the
$3.50

a

cars—such as

American Furniture

speaking, .the
high depreciation rate with its re
sultant tax loss provides insula¬
tion against income taxes for a
period of about five years.

Looking
freight

Call

would

net

and

tions.

resumed.

5% on
selling

$4.50

estimated

current

propor¬

present price of 69

yield

times

income

otherwise rise to taxable

clines

per

facturing end of the business. By
emphasizing research and the de¬
velopment of new types of freight

Trading Interest In

a loss for income tax pur¬
This loss can be accumu¬
lated and applied as an operating
loss carryforward into those years
when available depreciation de¬

produce
poses.

earnings increase as expected
this year's dividends could total
a
minimum of $3.50.
Next year
At

For

depreciation is substantial enough
in the first two to three years to

period

dividend

Trailmobile,

Exchange Place. New York 5

is

branch offices

STOCKS

Usually the amount of this early

regular

our

JAPANESE

the
depreciatio

as

large portion of its cost in the
early years of ownership.

1959

and

Mobile, Ala.
Direct wires to

encourages

even

NY 1-1557

New Orleans, La. - Birmingham, Ala

a

and

sales

and

to write off

owner

share. In the five
1953-57 annual divi¬
dends totaled $4 per share. Should

per

for Banks and Dealers

49

total

dividends

business

year

to

Securities

allows

15%

about

for

accounts

American

HAnover 2-0700

percentage

stitutional mortgage money.

With railroads .retir¬

Pullman's freight car parts

the

rate

fineries

brokerage service

Unlisted

all

in

Hub,

of
Pullman's
operations
changed significantly. Diver¬

plants.
a

August

and construction

Security Dealers Ass'n

Render

12,000

some

high

a

York Stock

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

possible
of
the cost of property through longterm borro wings in the form of in¬
finance

to

all, considering the prospect
of rising sales and consequent im¬
provement
in
profit
margins,
earnings are expected to recover
to about $4.50 per share "level, up
from last year's $3.52.

acquisition of M. W. Kellogg,
specialists in engineering, design

INC.

Steiner, Rouse & Co

estate investments find it

estimates

company

build

re¬

the

& co.

Bought—Sold—Quoted

Members

sification had started in 1944 with

Members
Y.

will

in 1959.

has

GROSSMAN

N.

Pullman

nature

WEINBERG,

:,

Samuel

—

Members New

In

was

railroad^,

The

first

the

than

months.

than

the

to

better

this

1947, when the
compan y's
sleeping
car
business

S.

Corporation

Weinberg, President, S. Wein¬
berg, Grossman & Co., Inc., New
York City. (Page 2)

half
six

pattern with the final

of

during
the past four
years.
In the
period since

sold

less

or

more

a

year

business

and 74

120 Broadway, New York

on

verse

Also,

have

Associate Member

Co.,

backlog of 8,400 cars) deliveries

shQulcT be

19&

Louisiana Securities

Huber,

August

—

This
provides
a
cash-flow
leverage
ing more cars than they are cur¬
which permits a higher than av¬
rently ordering the prospects for
increasing orders over the next erage return on capital. In addi¬
tion, the Internal Revenue Code
year and beyond are encouraging.

Currently

?

<■

.

slumped during the last half. This
year
(Pullman started 1959 with

cars

time.

<"'■<

Established 1920

nor

Inc.

6

Alabama &

Spencer Trask &
New York City. (Page 2)

year, freight car deliveries were
concentrated in Vne first half and

a

selling around

Corporation

be,

to

Thursday, August

.

^

Partner,

©flier to sell the securities discussed

AUGUST HUBER

tion

WOrth

PulMian,

Kratter

ative

New York Hanseatic

intended

not

are

.

Their Selections

particular security.

a

.

Participants and

Forum

*'■

among

^

?

A continuous forum in which, each week, k different
grohp of experts
M the investment and advisory f»e!d from all sectibns of the country

plete Over-the-Counter facili¬
ties,

This Week's

Security I Like Besl

broad range

system,

Financial Chronicle

The Commercial and

interest

in but

a

sin vie

erty now share .income and

Established

prop¬

own-

46 Front Street
CHICAGO

Continued

on

page

35

1913
He*

SAN

York 4,

N?

FRANCIS#

Number 5870

190

Volume

59

The Commercial and Financial Chronicle

. . .

WALTER E. SPAHR*

Executive

•4

v

-

Funds Retain Caution
-

.

—A.

Professor

-

•

(3)

defect

of

standard

able

basic defect

various

flow

far-reaching
consequences:

—Neil

the

Another

H.

Jacoby

eral

ment

st

*,

TV
is

control

!

the

W niter

over

h,

ApaUr

and

i
i
i
i

;W

*!i
•

M.

j*
I1

since

Another

1932.

is

our

(A
...

victims.

of

the

is the

panel

Jr.;

discussion,

Walter

which

is

J

tion

governmen-

of

mistaken

often

for

P.

ts

employs

public

such

IU
Y.

for

Charles

20

(Editorial)

J.F.ReiIly&Co.,Inc.

____Cover

33
48

8

Investment Recommendations.:

EloxCorp.
;

8

Sterling"...

Ling Altec

4

>.

1* ?

control

'

Treasury,

the .Execu¬

the

Federal

•What

irre¬

of

sequences

the

over-

use

Con¬

Reserve

.

Pacific Uranium

*.vt*

\

'

...

'

1

'

-

.

.

.

1 *

•

Electronic Research

Indications of Current Business Activity..
Mutual
NSTA

11

:___

37

____

Funds
Notes

8

-

18

:

Observations—A.

Wilfred

Singer* Bean

18

News About Banks and Bankers*...;—______

; /

Associates

*

___

HA 2-9000

&

Governments—

May.

form.
Reporter

on

;_

to be expected

should-

we

expect as

mackie,

inc.

40 Exchange Place,

N* Y. '

Teletype NY M825 & 14844

'J

Our Reporter's Report. _;

"____—
Direct Wires to

to
Public

probable or possible conse¬
quences of ^our use of irredeem¬
able currency? We should expect
the.

Securities.-^—-

Utility

14

Satr Francisco

Securities

Railroad

____—

14

_________

Los Angeles

Dallas

Chicago

/Cleveland

Philadelphia

"

banks,

working in- combination, any one, or two, or, all, of the fol¬
free hand in 'the use. of what lowing: (1) a further depreciation ;
should be the people's, money,
of our currency to a point which

Securities Now in Registration_____________

r

The issuance of
pieces of paper

;s

as

which, cannot

money

be

deemed

domestically

declared
tion's
She

lack

by

law

standard

gold

to

what

in
be

this

unit—

monetary

dollar—is

is

na¬

of

evidence

(2)

integrity.

dishonesty

It

same

of

standard

employed

.by

pared

of

New

Haven, New

we

with a contraction of
following
the crash

45

45

—

Salesman's Corner

Securities

The Market

.

.

.

and You—By

Wallace Streete

The

Best——

Security I Like

•'

!

.

2

—

.

The State of Trade and Industry...
/

•

.

or

possible consequences is
irredeemable cur¬

*See article

rency

and

to place ourselves on

Continued

on

page

Market

34

many years we

■

_

t;

«

•

.

%

on

the cover page "Funds Retain Caution as Bull

Twice

(Only $45 per year)
.

Reg.
WILLIAM
25

Spencer Trask & Co*
'

York

New

1868

B.

Park

U.

S.

ary

DANA

Exchange

Thursday,

August

6,

1942,

25,

•

25 BROAD- ST., NEW YORK

TELEPHONE

4, N. Y.
TELETYPE NY 1-5

IIAnover 24300
Boston

Nashville




,

Chicago

Schenectady

Glens Falls
Worcester

at

office

the

post

at

New

Pan-American

Union,

Dominion

Canada,

Other

1959

of

Countries,
Other

$65.00

per

$68.00

$72.00

per

year,

per

S.
of

in

.year.

year.

plete

statistical

state

issue

—

market

corporation news,
city news, etc.).

qubtation

bank clearings,

and

Other

Offices: .135

Chicago 3," 111.

South

$45.00

Salle

St.,

(Telephone STate 2-0613).

and
per

Publications

rate*

Quotation

year.

Note—On
the

La

—

$4)

.

publication will

account of

of

subscriptions

must

made

be

Postage

in

New

extra).

the fluctuations

in

remittances
for
and
advertisements

exchange,

foreign

as

York funds.

securities

as

those "hard to find"

The

r

Counter

quota¬

tions.

Write

25

Record—Monthly,

(Foreign

listed

all

-

the monthly prices

or

call:

WILLIAM B. DANA CO.

.

Bank

on

well
Over

Possessions,

President.

you

Febru¬

Subscriptions in
United States, U.
Territories
and Members

*

Every Thursday ("general news and ad¬
vertising issue") and every Monday (com¬
records,

Albany

matter.

Subscription Rates

N. Y.

•

•

second-class

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

to. 9576

5EIBERT,

as

Publishers

GEORGE J. MORRIS,SEY, Editor
WILLIAM

'

Stock

2-9570

Copy

hound

give
Reentered

Patent Office

New York 7,

Place,

REctor

This

Company

CHRONICLE

DANA COMPANY,

(Single

1959 by William B- Dana

Copyright

Weekly

Quotation

Record

Rolls On."

FINANCIAL

Founded

&

48

The COMMERCIAL and

have specialized in

Members

THEM

IN

tColumn not available this week.

Published

L

YOU WILL FIND

4

—___

and 'YOir.______—_.

Washington

eliminate

Haven,

f

QUOTATIONS?

17
'

tSee article on cover page.
B or

NEED "HARD TO FIND"

30

of

1929—; (3) 'the loss of our repre¬
government.
An
alternative to these prob¬

address by Dr. Spahr before the

Club

^ Prospective Security Offerings'-——

sentative form of

to
ons

while

period of severe contraction
which lasted 65 months as com¬

able

Conn., July 23, 1959.

;

using irredeemable Currency

were

the

counterfeiter.

1873-1878

had

we

—a

funda¬

is,

predict scientifically;

economic contraction such

an

months

of

mentally, the

|{

can

one

no

re¬

as

3$

empire state oil

S.

From Washington Aheact of the News—Carlisle Bargeron____

..

a;

87

and

The probabje or possible con-

(4)
<

gives

the

It

Einzig: "Socialists and

rea¬

currency,

and

Ruane,

Regular Features

*

Our

national tragedy in some

or

governments

purse. .Our,

gress,

tive,

irredeem¬

for good

and

unrestrainable

deemable

See

J.

economy.

able currency,
son:
it gives

r

William

Stern;

;!___

Dealer-Broker

•

government

transport

Mayo-

Coming Events in the Investment Field_____

a

the

>ck

Worthington

Business Man's Bookshelf____..__

a

is

by

Banks and Insurance Stocks.

bloating and distor¬
the economy,
much of

are

moderated

cur¬

Still an¬ sound and lasting economic /ex¬
relatively
sharp pansion; a pronounced growth of
decline in the purchasing power government controls; a generation
of Our currency—58% since 1939. of feverish activity and of deepOur dollars have the lowest pur¬ seated fevers; and in due course
chasing power ever reached since a variety of anxieties manifested
1749, as measured by our index in part in the plaintive and futile
of wholesale
prices.
protests against the high cost of
living and the Jdepl6tioh of the
(2) Irredeemable currency a tool
savings of those who cannot keep
of totalitarian governments
up with the rise
in prices. The
Every socialist or totalitarian final result is serious difficulties

tally-managed

other

As We

consequences

irredeemable

of

associated

doctors

It

government dictator¬

use

11

.

Smith, and consisting of: Robert F. Seebeck; John E. Friday,

Lipscomb.)

it

intermediate

of

a

american m.a.r.c.,

Career Opportunities Beckon in the Securities Business

a

The

rency

and

oil & refining

15

Chase Manhattan Bank Lists 99 Growth Areas in the
Economy

<

of

makes

~

government

their

that

is

march, led by our Federal
government, into the Death Valley
Socialism

commonwealth
13

inc

frequent companion in
this evil, or a common final result.

per¬

sistent

the

for

ship

This is illustrated by the
spending orgy of our government

texas american

—George W. Ball-

and

more

combination

reactions

and

reason

people's

purse.

si

This

it.

control

to

ble

n a

6

Common Market's Significance to the American Economy

r

per¬

is

its retention

easy

unre¬

i

r a

WHitehall 4-6551

'

'

:

—Richard A. Westcott.—___L____-—_

.*

currency

reason

desires

govern¬

j

:

Telephone:

Re-Examining the Practice of Favoring Top Rated Municipals

-

power

more-of

Fed¬

our

Dept,.

12

.

gives

Securities

STREET, NEW YORK

oil corp.

mand

use

99 WALL

5

Planning to Automate: Why?—James J. Green

able currency

the

that

i

10

that, given a
taste of this drug, the people em¬
brace it with enthusiasm, and de¬

is the fact

one

7

3

___________

Inflation Revisited?—Thomas G. Gies__

of irredeem¬

■1

obsoletes!

V

The Role of Life Insurance in Achieving Our Economic Goals

currency

ment

this

From

Monetary System's Defects and the Needed Correctives

—Ira U. Cobleigh__-____:___

gives the govern¬
it desires over
the
people by transferring the
control of the purse from them to
the
government
without
wide¬
spread awareness on their part.

gold dollar.

In return, we'll eat up

Cover

"

haps the most subtle drug that a
government can employ on a peo¬
ple. One reason is that irredeem¬

cannot be redeemed do¬
mestically in
' < •;

currency

our

nation

a

Irredeemable

k

system is that our

monetary

Open-Market Operations

A subtle drug for the people

fundamental defect in

The most
our

'

and

Obsolete

"

brougkt about.

Securities

A Big Expanding Gas Utility Serving Three Famous Islands

governmental care in the use of the people's purse. After,
defining a good currency system, he advises this be effectuated
and shows how this should be

S.

t—Walter E. Spahr___T_______

-V

•

possession of opportunity to redeem tends to force greater

4$

U.

your

Our

people'sor nation's welfare in so far as monetary practices
are concerned.
In appraising our currency, Dr. Spahr calls
attention to resultant, and possible or probable, harmful con¬
sequences said to stem from currency's irredeemability; draws
a parallel between France and ourselves;
and notes the gold
mining industry fails to accept "fixity" as a requisite in. a,
monetary standard. Moreover, Dr. Spahr explains why mere

(1) The major

Cover

__

—William McChesney Martin, Jr.___

/

Emeritus of Economics^ New York University

the

M

___^

SHARE OUR LETTUCE

economist finds that the present admin¬
istration places the convenience of the government ahead of

%

AND COMPANY

Bull Market Rolls On

as

Wilfred May

Market, for

Weil known monetary

9,

Pago

Vice-President

Economists' National Committee on Monetary Policy,
New York City, and
■fci

llCHTtnSTEi

&S*

Articles and News

And the Needed Collectives
DR.

3

in d e x

System's Delects

Our Monetary
By

(515)

Park Place

New York 7, N. Y.

REctor 2-9570

The Commercial and

Financial Chronicle

.

.

Thursday, August

.

6

(516)

4

1859

''

their funds

and Sterling

Socialists

By PAUL EINZIG

'

assumes

Many people are, there¬
beginning
to
give some
thought to the
possible effect
on sterling
of
October.
fore

Even
though at the

Government

A great

restrictions.

For

its

would

Government

be

to

hold

Party
Paul

Einzig

ruled

not

be

out

altogether.

margin

The

of

is bound to be narrow
on either side, and the appearance
of a large number of Liberal can¬
didates introduces a strong ele¬
ment of uncertainty into the deli¬
majority

cately balanced situation.
It is,
therefore, not untimely to attempt
to examine the ways
in which

sterling
Labour

would be affected if a
Government assumed

power.
Raises Questions

Questions that must be con¬
be

sidered in this connection may

summarized

as

follows:

Labour Government
devalue sterling or to
it to depreciate below the

(1) Is
likely to
allow

a

existing lower limit of $2.78 as a
matter of policy?
(2) If not, is a Labour Govern¬
ment likely to be forced into a
devaluation
or
depreciation
of
by a flight
British or foreign?
sterling

Will

(3)

a

to

endeavor

of

capital,

Labour Government
defend sterling by

restoring exchange restrictions?
(4) Will a Labour Government
prepared to defend sterling
with
the
aid
of disinflationary

be

measures?

safely be
emphatic nega¬
It is not the present inten¬

The first question may

answered
tive.
tion

of

value

by

an

the Labour

sterling.

Party to de¬

Some

years

to rise.

erations

could

done

be

business,

on

day

a

ago,

out its intention to

carry

weeks is inconceivable.

Taking a long view, sterling's
sweeping flight of prospects under a Labour Govern¬
ment would depend on that Gov¬
capital. There can be no doubt
ernment's willingness to
that there will be such a flight,
defend
not so much in anticipation of a sterling with the aid of disinfla¬
devaluation as in anticipation of a tionary measures. While exchange
tightening of exchange restric¬ control and various other eco¬
tions.
Whether such anticipation nomic control measures could sup¬
is

face

correct

some

of

of

a

not,

or

time

would

it

confidence

the

before

take

sterling in the La¬
Government's intentions to
of

holders

5% inflation,

press

the effects of

they

could not possibly suppress

the effects of

a

50% inflation

a

even

if it takes

ciently

place gradually. On the
hand, if inflation should
proceed at the same rate abroad

there is

as

bour

maintain

convertibility

suffi¬

is

established. In any case,
no convertibility f6r Brit¬
ish residents, many of whom might
wish to transfer capital abroad in
anticipation
of
anti - Capitalist
measures.
So long as sterling is
convertible for foreign holders it
is

easier

British

for

residents

to

circumvent the restrictions affect-

There must be innu¬
loopholes, simliar to the
"Kuwait gap" or the "Hong Kong

ting them.

other

gap" which are not generally
At present, any outflow
through such gaps barely amounts
to a trickle, but in case of a So¬
cialist victory it might swell into
a

flood.

Should such a flight of capital
materially reduce the gold reserve
the
Labour
Government
might
have to envisage the possibility of
a

devaluation of sterling.

regard to the

cause

Having

of the flight,

however, a devaluation might not
be the right remedy.
Those who
transferred
for

fear

ures

are

of

their

capital

anti-Capitalist

not

abroad
meas¬

likely to repatriate

would

ments

suffer.

not

of pay¬
In any

suspicions against the dollar
also help a Socialist Gov¬

case,

to

ernment

Inventory book values

,

cost

spiral would tend to be miti¬
or accentuated.
It is a fa¬
a

argument
that
equalitarian policy

more

Labour Government, the trade
unions would
be
willing to be

of

a

content

with

rience

more

This

creases.

unionist

And many trade
of Parliament

about

the

prospects
at the elec¬

Labour

a

tion,

in¬

expe¬

Members

worried

are

the

during the Labour Govern¬

ment of 1945-51.

of

moderate
not

was

victory
because they fear an in¬
by the rank and

creased pressure

rose

last year.
-

with manufactures in June were up 2%
allowances, and a fifth above a year
ago. Incoming business for durable goods producers rose 4% from
May with all major industries participating in the rise. Nondur=
able goods new orders held at the May seasonally adjusted rate.
In spite of the slight reduction in backlogs due to the impact of
record rates of deliveries, month-end total unfilled orders were
orders placed

New

from

after seasonal

may,

$31/2 billion above a year ago.

I'

Conservative Government.

possibility
of

case

of
a

steeper

on

And that
pressure

sterling.

Spiegelberg, Feiser Go.
Formed

m

Preliminary figures compiled by the "Chronicle",
telegraphic advices from the chief cities of the country,
^Indicate that for the week ended Saturday, Aug. 1, clearings for
all cities of the United States for which it is possible to obtain
a

ago.

year

above those of the corresponding
preliminary totals stand at $23,930,126,803

weekly clearings will be 12.3%
last

week

Our

year.

The firm of

Stock

Week Ended Aug. 1—

For

the

_

Edition

of

and

has been
Spiegelberg &

of bank clearings in U.'S. A. refer to
"Chronicle," issued Mondays.^ For
3, issue.

the

Uptrend in Building Permit Values Arrested
While

the total

value

of building

permits for 217 cities rose

moderately in June from May, the level was down fractionally
from that of June 1958, reports Dun & Bradstreet, Inc. This was |
the first year-to-year decline since November 1957. The total for
June 1959 came to $698,250,952, up 5.7% from the prior month's j;
$660,634,096, but 0.4 % below the $700,633,403 of the comparable
1958 month.
There

was

both

month-to-month

a

and

a

year-to-year in-

They amounted
to $85,266,220, for a gain of 5.3%
over the $81,002,065 of May,
and an increase of 51.7% over last year's $56,213,291.

crease

in plans filed

in New York City in June.

amounted

1958.

Steel Industry Data Reveal Nationwide

We maintain active

Co.,

change, has been formed with of¬
fices at 37 Wall Street, New York

Colonial

members of New York Stock Ex¬

on

page

trading markets in:

Stores, Inc.

Common
^

Spur Oil
Common

City.
Partners

in

the

new

firm

are

Stevens Markets,

'

William I. Spiegelberg, a member
of the

Support

Overwhelming nationwide support of the steel companies in
the current steel strike was revealed Aug. 3 in a tabulation of
nearly 6,000 letters received by the steel companies coordinating
committee, representing 12 of the strike-bound companies.
The letters came from nearly every state in the Union in
response to an advertisement headed, "Steel Union on Strike for

dis¬

Correspondents inprincipal cities

Class

Inc.

"A"

Exchange, and Jess L. GeisHarold

man.

Glenn

and

Established

Leon

Moses will also be associated with
the organization.

1919

R. S. Dickson & Company
INCORPORATED

Dominick

Members New York, American & Toronto Stock




4-18.8
+ 1.8
+ 8.8

this week's summary, refer to page 45 of the Monday, Aug

Continued

throughout the United States and Canqda

14 WALL STREET

1,071,863,893
965.000,000
643,033,005

1,273,133,011
982,000.000
699,366,476

_

detailed summary

a

Statistical

%

1958

1959

$12,279,137,697 $10,907,844,083—4-12.6

Spiegelberg, Feuer

Exchange,

solved

Exchanges

NEW YORK

Member Midwest Stock Exchange

Joins Dean Witter
(Special to The Financial Chronicle)

CHICAGO, 111.—David A. Mersbach is

now

Witter &

connected with Dean

Co., 50 West Adams St.

■

against $21,305,378,596 for the same week in 1958. Our compara¬
tive summary for some of the principal money centers follows:

New York

& Co., members of the New York

5

based upon

in¬

Socialist vic¬

persistent

mean

I*

clearings this week will show an increase compared with

Bank

June

a

the

would

&

f

under

tory must be envisaged.

Dominick

5 -I:

Above 1958 Week

Building permits recorded in the 216 outside centers in June
to $612,984,732.
The total was 5.8% higher than the
prior month's $579,632,031, but 4.9% below the $644,420,112 of

flation in

OF INVESTMENT SECURITIES

§, -S;

Nationwide Bank Clearings 12.6%

file who would expect to do better
under a Labour Government than
So

UNDERWRITERS AND DISTRIBUTORS

$500 million during June, after

transportation equip¬
Primary metal producers liquidated stocks moder¬
ately, while for other major manufacturing groups inventories
were relatively unchanged. End-of-June book values of $52 billion
were
$1V2 billion above the corresponding month of 1958. In¬
ventory sales ratios, however, were lower this June than a year
ago—the ratios begin one and two-thirds this year against two

Socialist

under

'

groups.

gated

vorite

"-*•

industries, primarily in the machinery and

ment

hold

The question is whether under
Labour Government the wage-

'

were

sterling without
New York
resorting to a credit squeeze. This
Chicago
is an important consideration, for_
—Philadelphia
the dollar is likely to remain un¬
Boston
der suspicion for some time.
a

:-'V

.

allowing for seasonal factors. The rate of accumulation was about
equal to the inventory rise in each of the preceding four months.
All of the accumulation during June occurred in the durable goods

would

merable

known.

in Britain the balance

'

nearly 2% higher than May for. both the durable
goods groups. Most major industries increased
sales more than seasonally; primary metal and motor vehicle pro¬
ducers recorded the largest advances.

two

or

undue hardship

standstill of several

a

"■

aggregated $32 billion, or $6 billion
June 1958. After seasonal allowances, shipments this

nondurable

and

But while this

for

without inflicting

than in

more

June

reconstruc¬

pending the

in

-■

Sales of all manufacturers

possible to suspend exchange op¬
tion of the control.

on manufacturers' books were reduced
The book value of inventories continued

unfilled orders

little over the month.

a

few weeks, a great deal of capital
can find its way abroad in a few
weeks.
It would, of course, be

sterling at its present level,

Labour

in

can¬

of

Backlogs of

1939

since

land

and new Orders each' increased
June, after seasonal adjustment, the Office
Business Economics, U. S. Department of Commerce announced.
Manufacturers'- shipments

..

about 2% from May to

the Bank of Eng¬
to
operate the

tion created by

able

to4 office

.

abroad, however, before ef¬
adopted.
the administrative organiza¬

way

the

of

return

INDEX

fective measures could be

sterling or widen the existing lim¬

a

FAILURES

COMMODITY PRICE

capital is bound to find its

deal of

the
possibility of a

Labour

BUSINESS

would

of exchange

What is less certain is whether

victory,

INDEX

PRODUCTION

urgent

Labour

A

a

chances are in

TRADE

FOOD PRICE
AUTO

tasks to defend sterling by means

Conservative

the

of

RETAIL

some

consider it one of its most

cialists, if any, because it would
increase profit possibilities in the
foreign exchange market.

favor

might be offset to

.It is difficult - to foresee
the net effect of a devaluation on
the movements of funds to and
from Britain.
^
• "T1*

permitted fluctuations;
The idea of a "floating pound"
finds no sympathizers among So¬

victory.

moment

CARLO ADINGS

highly involved exchange regula¬
tions has been greatly reduced in
recent years, as and when the re¬
idea of a system under which ster¬ strictions have been gradually re¬
ling would be adjusted from time laxed. It no longer has the staff
to time by changing its parities; which had been dealing with ex¬
but he has long abandoned that tensive exchange control.
A re¬
idea.
It is safe to assume that a construction of the administrative
Labour Government will not de¬ organization would necessarily
liberately^ change the parities of take time. Even if it only takes a
of

% lEEECfRIC, OUTPUT '1
•

toying with the

Mr. Gaitskell was

its

list

S o c i a

■

sterling.

LONDON, Eng.—It seems to be
more than probable that the gen¬
eral election will take place in

a

...

degree.

his country's election will be

on

X STEEL PRODUCTION

■

sterling
would
attract
foreign
funds at its devalued level the
outflow

held in
October and he weighs what effect a Socialist victory might
have on sterling.
He doubts devaluation or floating pound
would be instituted but he does envision a flight of capital in
anticipation of tightened exchange restrictions which in turn
would lead to a search for escape-loopholes.
Dr. Einzig be¬
lieves gradual domestic inflation or world-wide inflation at the
same pace might not injure Britain's balance of payments and
he says the pound may hold its own without a credit squeeze
so long as the dollar remains under suspicion.
As for domestic
wage increase drive, he sees this causing persistent pressure
British writer

result of a deval¬
other hand, since

as a

On the

uation;

CHARLOTTE
Atlanta

Columbia
Direct

CHICAGO

NEW YORK
Greenville

Raleigh

Wire to All Offices

Richmond

35

j

■

Is
■ - •

Number 5870

190

Volume

.

.

.

The Commercial and Financial Chronicle

(517) r5
V

,

effect

A

.

have

the

Serving Three Famous Islands
....'

and Author of "How

Island. These comprise
service

and Coney

with

water

with

rapidly grow¬

Brooklyn, was begun. It will
completed in 1965 at a cost of
$320
million,
and
will
surely

dis¬

urbanize much of the land which

the

be

of the

area

gas

comprises,

tributing utilpose to talk
about today.

Brooklyn
Gas

Company

million to build

the

at

serves,

of Long

generating

territory

a

miles

and

Island

means

of

water tun¬

three

about

Brooklyn
In

Union

con¬

in

is

electric

the

about

territory

future.

Let's

■—

talk

business at which
Union is so competent.
gas

postwar
had

years

Brooklyn

difficulties.

some

The

company was still manufacturing
its gas and got caught in a squeeze
between
rising fuel and wage

by
as

mergers

and

the

has

area

Edison
on

facilities

enough

1,150,000

and

The company
all this service

customers.'

solidated

But

187 square
population of

million

four

over

new

be

to

present

—

total

a

of

on
Staten
ready for this quite
assured
dynamic
expansion
in
population.

all of
and
Ira U. Cobleigh
half of Queens
County; all of
Coney Island; and all of Staten
Island
with natural
gas.
It's
Island,

Brooklyn

quite

a

nel, and Consolidated
spending $100 million

Western
end

one-third

served

area

the last one just com¬
pleted in June, bringing Brooklyn
Borough Gas Co.
(supplying
many years,

costs
So

and

much

a

lag in rate increases.

that, from July 1947
Coney Island) into the fold by to December of 1948, common
exchange of
150,000
shares' of •dividends were omitted. But much
brighter days lay ahead.
There
Brooklyn Union common.
There

are

in

metropolitan
industrialized

real

big swath of
estate, heavily

areas,

1949

of which is vacant land.

acreage that adds especial
to Brooklyn Union com¬
for it represents the largest

service

area

million

pos¬

major metropolitan
utility in the country. Staten
Island (Richmond
County) is part

patiently,

since

first

spied
some

coke-oven

was

A $13

no

oil.

As

result

a

gleans

now

years.

the

com¬

of

30%

over

heating

in

due

announce

course,

with

most

a

had,

favorable

ended

was

This

June

upward

slowed

1959

year

increase

wage

due

to

which

the

in

gross

into

City
by

voted

revenues

of

Board

8%

an

went

effect April 1, and the higher

Tax

the

trend

may," be
somewhat for the cal¬

up

endar

1959

30,

$3.28.

Estimate.

We

ex¬

pect,
however,
that
1959
will
probably be the best year in com¬

history and it doesn't take

pany

much

too

that

if

imagination

to

suggest

share earnings ap¬
$3.50 level, another

per

and it acquired its
100,000th home

proach

heating customer last

increase in cash dividends is pos¬
sible.

90%

of

homes

new

service

area

Over

year.

built

last

.

in

yeatr

the

BU

stimulates

for

It

million worth last year

and

in

gas

sold

$8

mostly

—

water heaters

summer

and

—

of

this

alternate

some

must be found

the

what

about

purchase today?

demand

by selling appliances.
ranges

Now

were

equipped for gas heat.

for at least

a

use

part

huge cubic volume avail¬

able.

the

4%

which
a

is

not

utility

steady

of this quality.
there
lies
ahead
a
in the percentage of

rise

homes

in

ers

the

area

that

use

the

bulging

Staten Island

apartment houses, incineration

by the
The

response

transportation

new

of

accommodate
an

since

the

pliers:
Texas

presently has
who

investors

to

equities, BU common

the

satisfactory,

is

trend in earnings and

rate

a

are

fitted

dividends is

pronounced, and the stock

could

easily

share if all
Island

earn

they

$5 or more per
about Staten

say

true.

comes

Rosasco Asst. Sec.
Of Baker, Simonds
Mich.

DETROIT,
Jr.

Rosasco,

on

—

Aug.

Victor

Assistant Secretary of Baker,
&

Simonds
members

Co., Inc., Buhl Bldg.,

of

the

Stock

New

York

Exchanges.

into

escalator

Commission, whereby price in¬
in pipelined-delivered gas
be promptly passed
along to
customers.
The company has

creases
can

available

storage tanks to take
peak load requirements,
and has been considering storage
facilities for liquefied natural gas
in Brooklyn.
\
of

.

Earning

at

power

>.

Brooklyn

Union Gas has been expanding at

pleasing

a

(expense
enue)

rate.

has

around

been

87;

capital

Operating

was

6%%

on

in

share

per

year

rev¬

stabilized

return

steadily each

ratio

percentage of

a

as

at

invested
1958;

have

and
risen

from $2.08 for

1953 to $3.17 for 1958.

For the 12

pleasure the formation of

Faulkner, Dawkins & Sullivan
Members new York Stock Exchange and American Stock Exchange

GENERAL.

DWIGHT

RICHARD B.

Zilka, Smither k Company

(Associate)

PARTNERS

F.

FAULKNER

DAWKINS

F.

SULLIVAN

JOHN C.

DAWKINS

JOHN

the
ALBERT H. FABER, JR.

•

opening of a

'

if

SENIOR

ALBERT

H.

FABER, JR.

H.

MARSHALL

institutional

HAROLD

L.

sales

JOHNSON

office manager

51

Broad

■

Seattle Office

ANALYSTS

ROBERT P. COLIN

RICHARD

■

Street, New York 4,

ROBERT W.

ROBERT

EMERY

in the

FARRELL

F.

Y.

Logan Building

5th and Union

HAGUE

•

Room 912

MORSE

consultant

ROBERT

H.

SMITH

i

manager, trading department

BOwling Green 9-2810

ilka,Sniitlier&Co.J§i
912 Logan Building •
Phone MAin 3-2390

Other Offices:

Seattle, Washington
PBX SE 842

Washington — Longview and Vancouver

Oregon—Portland, Salem, Eugene, Medford, Coos Bay, Hood River, The Dalles and Astoria,
AUGUST 3.

1959




i'j

i

-

r v

v

t?

■

P.

13 will be¬

clause, approved
by the New York Public Service

care

rising

quite

Eastern, and Tennessee Gas.

All these contracts

The

interesting.

quite

appear

yield

have

utility
today may

partial

been

2,313,410 common shares listed on Detroit

three sup¬
Transcontinental
Pipe,

company

those

ror

always

its

from

outlays—pos¬
preferred stock

none.

$84,244,000 in long term debt and

gas

1961.

these

issue of

sibly

generation of electric power.
On the supply side BU receives
natural

and

1960

in

financing will no doubt be
required in the next 12 months to

come

up

has

fairly

a

amount

same

to

bridge.

capitalization is made

has

Some

as

created

Exchange.

Stock

York

heavy capital
expenditure program^ It spent $14
million on plant last year; will
spend about $18 million on con¬
struction this year; and about the

develops its sizable

in

steam

demand

New

BU

expand demand; and in the future
there's

improved

and

may

the

The price range for 1958-59
been between 34%' and 59V2.

heat; improved air condition¬
or
gas
refrigerators
could

summertime for water heating

drying,

level for

exalted

equity

Moreover,

gas

an

in

clothes

for

yield based
on the $2.20 dividend.
The stock
sells at about 16 Vz times earnings
a

real estate acreage in

and

stock

It sells at around

54 which allows

The company has been quite
successful in promoting use of
gas

earnings

The change-over, however,

by

other

We

company
natural
gas

fuel).

City and has waited

Hudson, for

the

adapted to receive and burn nat¬
ural gas (which is a much hotter

gas

Hendrik

first

longer
needed, and was scrapped^and
customer
appliances had to
be

sessed by any

of New York

1951,

switch-over to natural gas.

.

undeveloped

in

in

brought, all the way from Texas
by
Transcontinental
Gas
Pipe
Corp. There were some ad¬
justments to be made for the

romance

mon,

five

the backbone

gross revenues from house

Line

this

It is

increases

rate

its

and,

received

densely

so

helpful

were

this

populated residential sections; and
38,600 acres of Staten Island, half
latter

past
are

by Brook¬ hopes to build
up its distribution
lyn Union.
The
population on of
gas air conditioners.
Staten
Island
today is
around
The
climate
is
important in
220,000.
By 1970 this figure is
planning gas supply and sales.
expected to reach 600,000.
New
Forty percent of the gas volume
York City has just allocated $25
is required for winter heating; so

ity we pro¬

Union

totally,

the surface

the

increased

business

coal or

the
metropolis
transportation. Well,
only last month the new Narrows
Bridge, to connect Staten Island

than

BU

pany

connection

the three best known

Perhaps

of

has: been

months

figure

and

doubled,

accounting,
in
1958, for 72% of gross. BU has
stressed home heating and by rate
reductions has actually made gas
heating cheaper - than by either

to Get Rich Buying Stocks

natural gas.

American islands, after Manhat¬
tan, are Long Island, Staten Island

each

of

of salesmanship in the piping and purveying of

exponent

dividend

in

look at Brooklyn Union Gas Company, effective

A forward

than

more

Residential sales

By DR. IRA U. COBLEIGH

.

Enterprise Economist

ing

on
earning power;; and,
1952, psales and earnings

since

and

The Commercial

and Financial Chronicle

.

Thursday, August 6, 1959

.

.

(518)

0

The Role of Life Insurance

Graduate

Former Member,

There

Council of Economic Advisers to

bate

President Eisenhower

k^o^jThe life

a vigorous deconsistency of our

been

has

the

over

Some have argued that efmaintain a stable price

goals.
forts

life
insurance
and
furthering them. Don't be deluded, he advises, by those who :;~H
argue the danger of inflation is exaggerated and that we should
turn to more important things.
It is Dr. Jacoby's opinion that
lists our three basic economic goals and the
industry's tremendous contribution in supporting

Dean Jacoby

'

,

-

inflation remains

industry,

ance

would leave to

and

people and how it may conto

\

serve

them.

and these

be

can

that

impacts of life
i

nomic

surance

n

have-

BRViHH
MlKife!'r

been

pnwprfni
industry

Thn

in

over

$500 bil¬

force

recent

pro¬

flow

personal

In
Neil H. Jacoby

seek

in-

Tho
The

is

the population—including four
of every five families.
The

out

investments of the life companies
amount to more than $107 billion,

figure

tenth
our

equal

of

the

to

almost

national

country. Manifestly,

try whose markets
whose

fail

—77—

u

assets

to

are

exert

.

„

,

.

4

influences

These

three

goals

—

ufiCA«u™«.<' £

Centennial
Anniversary,
City, July 28, 1959.

freedom-must continue to
the foundstion StonCS Of, TJ. S.

New

economic

policy.

They

Let

be

not

us

threat

the

to

de-

to

continues

Inflation

ominous

an

be.

growth

stability, power and international
prestige of the United States. It
be

prevented by an aroused
public which will

informed

are

also

defense

,

the

dustry as
growth.

command

is

^

As

a

factors

relative

to

the

especially

-

not

existed, the supply of savings
have been restricted, in-

would

of

.

__

_

,

_

.

modest means,

World -War I life insur-

and

companies

Get

few

In

other

Industry

as

There

t

miss the

Bank

in

the

issue

August 13, 1959

were

of

Regular Advertising Rates Will
For

Space in This Number.

25 Park




FinancialChronicle

Place, New York 7, N. Y.

life

—

insurance

possible the birth of an

im¬

In

an

urban

industrialized so¬

ciety the individual needs assur¬
ance that he will have the neces¬
sities

of

life

under

conditions of

the
the
energies
of
people, it is
necessary to free them from the
nagging anxieties of want that
may come from old age, untimely
death, disablement or joblessness,

adversity, before he will take
risks of enterprise. To release
full

Life

insurance

has

done

the

make

possible

major

executive.

which

bank-

—■

stability,
government in¬
deposits—U. S.

mutual

no

funds

of

investment

few

and

far

plans

were

-j

p. B. s.

to

A

in

security

were

as

yet

.

savings banks on the Atlantic
seaboard, the only way in which
build

risk

great
life

insurance

ing this

era

estate

an

was
or

the

panies
tant

only

we

send

you

our

latest quarterly com¬

11 ^Philadelphia bank stocks, dated
30th, 1959? Just call or write our Research

parison of
;;

June

Department.

-

1

-

-

American
without

purchase

annuities?

of

Dur¬

the life insurance in¬

performed

a
unique and
pioneering role.
Today many types of institu¬
tions compete for the savings of

people.

'.pealing opportunities to investors.
May

un¬

tual

employed

Philadelphia Bank Stocks—whose pro¬

dividend
records, inherent stability,
steady growth and attractive yields offer ap-

longed

.un¬

of.
Apart from; deposit-,
ing his funds in one of the mu-

average

long-standing specialty of Stroud is making

markets in

between.

almost

~

-

-

Governmental schemes of

dustry

The Commercial &

in

dreamed

the

Prevail

chances

were

Private pension funds and profit-

could
»

no

bank

risks

sharing

your

by expanding aricTsta-

persons,

personal

there

Building and loan associa¬

known.

opportunity to advertise
or

era

commercial

was

of

the

stocks.

Industry.

Firm, Corporation

the

were

social

Don

pre-

long

much to
founding o
new
businesses, the expansion oi
existing businesses, and the con¬
.providing a foundation for enter- tinuity of firms which have suf¬
Prise and initiative by millions of fered the death of a partner or

provide the small investor expert
management
and
diversification
of

perspective of the business conditions

the Railroad

in

this

institutions

that

there

tions

your

our

for

the

biiizing markets, and by promotThe personal and family secu¬
ing wider direct ownership of
rity provided by life insurant
the "little man" could place his shares of common stock in AmerContinued on page 41
savings with confidence.
Let us ican businesses.

savings.

and

expressed by the executives in the industry.
•

were

institutions

mc

portant enterprise.

this great network of institutions

•

millions

among

told

friend

My

thousand-fold

vestment would have been curtailed, and the nation's progress
by stimulating savings, would have been stunted,

economy

devoting his life to public
after
building a great

taken

made

major promoter of the economic
growth of the United States. Had

Promoter of

savings bonds had not been born,

Railroad

i

Re¬

in¬
volved in founding my business.
I would have remained a clerk in
the local bank."
In this instance
—which could be multipled ten
and

The life insurance industry has
the growth of the U. S.

fostered

now

enterprise.

ernment bonds form '9% of total

our

ing system then lacked

pertinent

women,

I

service,

Today, public utility and mdustrial bonds far outweigh railroad
bonds, home mortgages are many
times farm mortgages, and gov-

Economic Growth

surance

cover

and

men

.

promoter of economic

a

Life Insurance

recall

1959 Railroad Issue will

free

century they have made striking that life insurance had been the
foundation
of his career.
As a
changes in their investment portfolios. Fifty years ago some 34% sickly boy he and his two sisters
had been orphaned.
He said "If
of'life insurance assets were rail- we had not had the insurance ben¬
road bonds, nearly 10% were farm
efits left by my father, I could
mortgages, while holdings of gov- never cf
completed my education
ernment bonds were negligible,

inflation

dollar,
to

.

eminent

"The

A

.

assets.
We may conclude that the life
life insurance in- insurance industry has been a

American

ance

*

1

the

chanced "to meet a dis¬
tinguished
business man on a
transcontinental air journey.
He
cently

examine the role of

now

us

War

THE CHRONICLE

of

for millions of families.

come

.

OF

and

savings and invest¬
He is free to choose from

bilities

and Llfe Insurance As a Bulwark of
by mobilizing savings for investEconomic Freedom
ment in productive
assets, homes. % Let us now inquire how life inand community facilities.
' surance companies have served
We often forget that during the the
goal of economic freedom?
half century
between the Civil -They have done so,, I suggest, by

"ANNUAL RAILROAD NUMBER"

amount

his

cisions, and to take the responsi¬

attention.

earnest
Let

the

of

continue

should

American's of

DON'T MISS IT

of

arrangements offered by
many
institutions competing for
his
patronage.
This system is
consistent with a .free society. It
calls upon each of us to acquire
the knowledge, to make the de¬

opportunities created by the in-

support necessary anti-inflationary
policies. ' Although
we—are
achieving
some
success
in the

steady

growth, a reliable dollar, and eco-

JJ

the

among

responded to the new investment

.

tervention by government m the
details of economic life.
|
'

the

choose

ments.

or

matters.

luded.

interdependent.

and evolving a minimum of in-

cannot

ciety's
York

of

vast and

huge

strong

if

casion

so

primary economic goals,

^dividual-, freedom- of 'action,
bafd UP™. Private >enterprise
and competition in open markets,

indus-

an

are so

late, apologists of "creeping'1
have said less about its

tant

and

one-

wealth

States

Secondly, we aim to maintain a
reasonably stable level--of- prices
whlch will glye us a dollar Of depe"^bif buying power. .
Thirdly, we intend to have an
economy with a large measure of

million Americans—70%

121

discussion of
there has emerged a

first place, our people
vigorous and reasonably

_

ab°ut
of the
capital funds supplied by all sav-

its ^desirability, creasing urbanization and indusinstead,- that, triahzation of society, the rise of
the danger of inflation is, greatly personal income and home ownexaggerated and the public should ership, and the huge growth of
turn its attention to more impdrgovernment. -Over the past half

the
a

to

forms

absence of govern-

an

inevitability

United

remains

and

Each American has wide freedom

Some of them argue,

S. Economic Goals

that the

citizens

economy. It accounts for
of every three .dollars

inflation

must

*

ownership of this inspread among more

than

a

Of

contrib-

steady rate of growth in percapita

^

&

n

o

surance

of

people -and

production and living standards,
*
t

■

x

™

a 'half
half.

our

that they are

and

U. S.

of

years

has three

entire

a

of

the public

concensus

aln
equal

;,the

of

Out

tection,
to

goals

Three Basic U.

in¬

of

surance

amount

million,

astronomical figures be-

how life insurance has
" Uted to" their fulfillment,

security

responsibility of private
private institutions.

primary

,

now

has

lions

of

gin to take on meaning,
Let us examine the basic eco-

the

se¬

almost daily physical contact with
Life
insurance
companies
have
mental interference, then the real the assets financed by life insure
been an affective part of this free
growth of the U. S. economy is ance. Since the end of World War
system.
fostered -by
a
dollar of - stable II " the life insurance companies
Life insurance has formed an invalue.
Even a gradual inflation have made $42 billion of home
of the price level, once it becomes]. mortgage loans, helping perhaps dispensible foundation stone of in¬
generally expected impedes real W million families to acquire dividual, risk-taking enterprise. It
has provided a floor of security
growth.- It- results in lessened theirLown-homes. We have seen
for millions of people upon which
saving, ■ misdirected
investment;, life insurance investment dollars
speculation, lo«ser management, at J work
across
the 'continent they have been able to place a
ladder
of opportunity.
Through
and
lower
productivity, v When building housing projects, shoppeople expect long-run stability ping centers, airports, mines, fac- good j times and bad, and even
in
.the
price
level, .C their:Lbe--4ories, power "plants,
airplanes, during the black days of the Great
Depression, life insurance benefits
havior
promotes the growth iof trucks, rail, cars and pipelines,
were the only sure source of in¬
production.
'/-;V. The life insurance industry has

markets and

Growth.

tiply these effects by 40

I®!;!""

We
sure

financial

question here I believe that most ln§s institutions,
thoughtful Americans have cornel.> .These bareji-statistics—impres¬
ts this conclusion:
If individual sivei iii their si?e—fail to convey

upon

has served
the fundamental economic aims of
tinue

gradual inflation is a neces-.
companion of rapid growth.!,
Without exploring this complex

that

government

ing the past generation, the pro¬
vision
of
personal
and
family

eight

every

performed in

by

curity" in the United States dur¬

dollars of the annual long-term
investment-.made; m the U. S.

sary

the behavior of people and
the nature of our economy. Think
for a moment how deeply life insurance has affected our life, our
family, our business! Then mul-:

the

how

consider

life insurance industry

our

impede-ecohomiG v progress, •

such policies should

warns

hedge against inflation but as a means

participating in United States

should

We

a

as

/

level;

of

one

are

measure

enter¬

functions that

Despite the growth oi "social

prices and movements of capital the tangible effects of life insurand labor are flexible, as a result" ance' investment upon our everyof adequate competition-Lin open- day lives.
Every one of ust has

of inflation's first victims, for the recent
in the battle against inflation. The economist
each firm the decision as to whether it should

sell variable insurance, or not,
be sold

.

to

one

favorable turn

not

credits the insur-

ominous threat and he

an

larger

insurance industry now

about

*nvests

nations

moat

in

taxes for lite insurance, yielding

companies

private

performing

prises,

the industry $11V2 billion of preactions serve these ends, our.coun- mium income. Because the puolic
try will stand as a powerful bas- araws benefits of about $bV2 biltion of freedom against the hostil- liOns, the net flow of investment
ity of international Communism, funds to the industry is almost $o

School of Business Administration
University of California, Los Angeles, Calif.

1

collective

insurance

mernseives

are

almost

and

long as American policies

So

H. JACOBY*

By DR. NEIL

paying

life

Our

Ameri4% of
incomes after

Currently

scope.
are

their

They serve to bind the nat'ions of the Free World together,

bloc.

Achieving Our Economic Goals
Dean,

cans

outside

countries

in

tional

goals of most other
the Communist

fundamental

Let life insurance
continue

agency

savings

com¬

to be an impor¬
savings and the
institutions of na-

of

&

COMPANY,

INCORPORATED

123 South Broad St., Phila, 9 •
120

Broadway, N.Y. 5 • WO
PITTSBURGH

•

ALLENTOWN

•

PS

5-7330

4-0400

LANCASTER

I

Volume

190

Number 5870

.

.

The Commercial

and Financial Chronicle
.

(519)

Interest exempt from Federal Income Taxes under
present laws
Tax Free in

.vAj
<

Legal Investment, in

V-5

and certain

Pennsylvania (except for succession

or

inheritance taxes)

:V

opinion, for Savings Banks and Trust Funds in New York, Pennsylvania,
other States and
for Savings Banks in Massachusetts and Connecticut
our

vama

3%%,

;

Serial Bonds

,

Dated August 1, 1959

Due

August 1,

as

Jilli

shown below

Iv.v.v.v.v.;:^

Principal and semi-annual interest (February 1 and August 1) payable at Mellon National Bank and Trust Company, Pittsburgh, Pennsylvania, at Bankers Trust
Company, New York, New York, or at The First Pennsylvania Banking and Trust Company, Philadelphia, Pennsylvania.
Coupon bonds in the denomination of $1,000. registerable
.c

.

*1 I

*

as to

principal only.

Mm*.

*

4.

These bonds, to be issued for Korean Conflict Veterans'

lilf
Compensation

purposes, are

authorized under Section 23 added by amendment to Article IX

m
ip

of the Constitution of the Commonwealth of

Pennsylvania, approved by a vote of a majority of the qualified electors voting thereon at an
election held November 5, 1957, and by an Act of the General
Assembly of the Commonwealth. In the opinion of the Attorney
General and Bond Counsel the bonds will be direct
and'general

j|fS

obligations of the Commonwealth of Pennsylvania secured by

on,

:C

the bonds by levying ad valorem taxes, unlimited in amount,
wealth and

excise

taxes

upon all taxable property within the Common¬
certain transactions, except excise taxes, the proceeds of which are

upon

-

a&r

specifically limited to highway

purposes

k

by Section 18 of Article IX of the Constitution.

ilffe

AMOUNTS, RATES, MATURITIES AND PRICES
(Accrued interest

to

'V

be added)
To Yield

m

Rate

7,000,000

To Yield

Amount

Rate

4.60%

$6,700,000

Due

1962

;f 2.75%

$8,100,000

31/4%

4.60

Amount

1963

2.90

8,400,000

31/4

To Yield
or Price

Price

Amount

Rate

1967

3.10%

$9,200,000

3.30%

3.15

W*%
3%

1971

1968

1972

3.35

Due

or

9,600,000

Due

1
jtim

'

7,300,000

4.60

1964

3.00

8,600,000

31/4

1969

3.20

7,600,000

31/4

1965

3.00

9,000,000

3V4

1970

100

:

7,800,000

31/4

1966

3.05

3%

1973

10,200,000

3%.

1974/73

100

10,600,000

3%

1975/73

100

9,900,000

:

r.;

100
:

'

The bonds

■

maturing August 1, 1974 and 1975 will be subject to redemption at

When,

as

and if issued and received by

us

par

*

and accrued interest in inverse order of maturity

August 1, 1973

on

.or on any

iimS

Jm

interest date thereafter.

and subject to approval of legality by the Attorney General of the Commonwealth of Pennsylvania, and by Messrs.

Rhoads, Sinon and Reader, Harrisburg, Pennsylvania. Copy of the

Dilworth, Paxson, Kalish, Kohn & Dilks, Philadelphia, Pennsylvania and Messrs.

opinion of the Attorney General will be printed on the bonds and copies of the opinion of Bond Counsel will be available upon request.

Bankers Trust Company

Drexel & Co.

The First National City Bank of New York

The Chase Manhattan Bank

The First National Bank of Chicago

The First Boston Corporation

•

Halsey, Stuart & Co. Inc. Smith, Barney & Co. Kuhn, Loeb & Co. Chemical Corn Exchange Bank Harriman Ripley & Co. Blyth & Co., Inc. Kidder, Peabody & Co. Lehman Brothers The Philadelphia National Bank
Incorporated

The Northern Trust Company

Harris Trust and Savings Bank

and Trust

Lazard Freres & Co.

Merrill

Bank of America C. J. Devine & Co. Glore, Forgan & Co. Goldman, Sachs & Co. Ladenburg, Thalmann & Co.

Continental Illinois National Bank
Phelps, Fenn & Co.

Lynch, Pierce, Fenner & Smith

N. T. & S. A.

Company of Chicago

.

.

White, Weld & Co.

Eastman Dillon, Union Securities & Co.

Salomon Bros. & Hutzler

R. W. Pressprich & Co.

.

Incorporated

Equitable Securities Corporation

Hemphill, Noyes & Co.

Shields & Company

Stone & Webster Securities Corporation

B. J. Van Ingen & Co. Inc.

Mercantile Trust Company

The First National Bank
of Oregon

•

Bear, Stearns & Co.

Carl M. Loeb, Rhoades & Co.

Weriheim&Co.

Hornblower & Weeks Blair & Co. A. C. Allyn and Company Alex. Brown & Sons F. S. Moseley & Co.

Paine, Webber, Jackson & Curtis

Incorporated

Haligarten & Co.

Clark, Dodge & Co.

Francis I. duPont & Co.

L. F. Rothschild & Co.

Estabrook & Co.

Bache&Co.

A. G. Becker & Co.

Barr Brothers & Co.

First of Michigan Corporation

Dick & Merle-Smith

Braun, Bosworth & Co.

Incorporated

Hayden, Stone & Co.

Incorporated

Incorporated

W. E. Hutton & Co.

Lee Higginson Corporation

Dominick & Dominick

The Marine Trust Company
of Western New York

'

W. H. Morton & Co.

F. S. Smithers & Co.

Shearson, Hammill & Co.

Wood, Struthers & Co.

William Blair & Company

J. C. Bradford & Co.

Weeden & Co.

Adams, McEntee & Co., Inc.

DeHaven & Townsend, Crouter & Bodine

R. S. Dickson & Company

Incorporated

The Illinois Company
Incorporated

Schaffer, Necker & Co.
August 5,1959.




1

Bacon, Whipple & Co.

Bacon, Stevenson & Co.

American Securities Corporation

Fidelity Union Trust Company

Geo. B. Gibbons & Company

Laidlaw & Co.

R. H. Moulton & Company

Moore, Leonard & Lynch

The National State Bank
of Newark

'

Schoellkopf, Hutton & Pomeroy, Inc.

Schmidt, Roberts & Parke
Statements herein,

while not guaranteed,

„

Butcher & Sherrerd

Hirsch & Co. | E. F. Hutton & Company

Incorporated

Incorporated

Kean, Taylor & Co.

Yarnall, Biddle & Co«

Incorporated

Incorporated

Coffin & Burr

Dean Witter & Co.

Stroud & Company
Incorporated

Reynolds & Co.

are

based

upon

information which

we

believe to be reliable.

Wm. E. Pollock & Co., Inc.

| Roosevelt & Cross
Incorporated
Incorporated

Singer, Deane & Scribner

4

II

9

The Commercial and Financial

(520)

pany, a list of investment

Dealer-Broker

Continental Insurance
Beneficial

Finance

curities

Investment Recommendations

&

available

suggestions, and

Chronicle

.

.

Thursday, August 6, 1959

.

memorandum on

a

Co.

Co.—Analysis—Eastman Dillon, Union Se¬

Broad Street, New York 5, N. Y. Also
analyses of Beckman Instruments Inc. and Min¬

Co., 15

are

Events

neapolis Moline Co.
Berkshire

and Literature
ItT

Hathaway Inc.—Report—Georgeson & Co., 52 Wall
Street, New York 5, N. Y.
Beryllium Corporation—Analysis—Van Alstyne, Noel & Co., 52
Wall Street, New York 5, N. Y.
Boise Cascade Corporation—Report—Pacific Northwest Com¬
pany, United Pacific Building, Seattle 4, Wash.

-

IS UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED
TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:

L
}

Brooklyn Union Gas Company—Review—First Boston Corpo¬
ration, 15 Broad Street, New York 5, N. Y.

=
Banks and Trust Companies—Comparison of leading banks and

California

trust

Power

Oregon

Company, 207 East Michigan Street, Milwaukee 2, Wis.

New York.

consin

BanLham View

Canal

—
Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y.
Also avail¬

able in current Foreign Letter.
Automotive and Related Industries—Review—A.

Kidder

Co., Inc., 1 Wall Street, New York 5, N. Y. Also available
is a report on Olin Mathieson Chemical Corp.
Case Against Double Taxation—Discussion in August issue of
"The Exchange"—Exchange Magazine, 11 Wall Street, New
York 5, N. Y.—Paper—20c per copy, $1.50 per year. Also in
issue is

same

Clute

dustry.
its

in

Future—Port

the

Consolidated

Bonds—Port

New

of

York

Authority and

New

of

York

Authority,

issue

current

"Nomura's

of

Investors

111

63

&

August

issue

"Investment

of

the

are

General Dynamics Corporation —
Report
Broad Street, New York 4, N. Y.

on

General Mills—Annual Report—General

are data on Burndy Corp.
Also available
Saint-Gobain, and Kaman Aircraft Corp.

II.

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

J.

Bank

Stocks

&

a

comparison

of

10

leading Paper

data

82

Deane &

Western

7th

Pennsylvania

edition

of

corporations

*

*

Com¬

Oklahoma

Singer,

ing Co.

*

State Properties, Inc.—Review—Alkow &

120

Memorandum

—

Roman

&

&

Co., 36 Wall

Co., Inc., 40 Ex¬
-

—

Manufacturing Company, and Columbian Carbon

Day

&

River

Beach

Products

Com-

U.

S.

Memorandum—

—

way,

&

Country

a;-

r

Municipal Bond Dealers Group
Cincinnati annual outing —
cocktail and dinner party Thurs¬
day at Queen City Club; field
of

day, Friday, Kenwood Country
Club. Y

;

Sept. 23-25, 1959 (Milwaukee,

Wis.)
National
Women
at

the

Association

of

Bank

37th annual convention
Hotel

Sept. 28-29,

Schroeder.

1959

Association

(Toronto,

Line,

of

Inc.—Analysis—

Co., 72 Wall Street, New York 5, N. Y.

Stock

Exchange

First Board of Governors meet¬

ing at the Royal York Hotel.
Oct.

14-17,

1959

(Philadelphia,

Pa.)
Consumers Bankers Association
39th

annual

Warwick

Oct.

convention

the

at

Hotel.

1959

20-23,

(Hollywood-by-

the-Sea, Fla.)
Association

visors. of

State
at

of

Super¬

Banks annual
The
Diplomat

Hotel.
Oct. 22, 1959
Ohio

(Cincinnati, Ohio)

Group of Investment

Bankers Association annual fall

meeting.
Oct. 25-28,

1959

(Miami Beach,

Fla.)
American

Bankers

Association

Annual Convention.

\

Vitamin

Wilson

-

„

convention

&

Pharmaceutical

Also available is

Corporation

a memo-

Bulletin—De

—

Witt Conklin

For financial institutions

;

are

Cement Stocks and Ryder System.
randum on General Controls Co.

„

Waionda

the

at

National
of Miami

(Des Moines,

Iowa)
Iowa Investment Bankers Field

Street,

American Sulphur Company—Analysis—G. A. Saxton &
Co., Inc., 52 Wall Street, New York 5, N. Y.
Poly Industries, Inc. — Analysis — Morgan & Co., 634 South
Spring Street, Los Angeles 14, Calif.
Rubbermaid Incorporated—Analysis—Straus, Blosser & Mc¬
Dowell, 39 South La Salle Street, Chicago 3, 111.
Skelly Oil—Review—Shearson, Hammill & Co., 14 Wall Street,
New York 5, N. Y.
In the same circular are discussions of

Report — Reynolds & Co., 120 Broadway,
New York 5, N. Y. Also available are
reports on Thatcher
Glass

48

Pan

change Place, New York 5, N. Y.
Viscose

Co.,

Also
analyses of the Richardson Company and the
Tappan Company, and a memorandum on California Pack¬

Industries, Inc.—Analysis—Halle & Stieglitz, 52 Wall
Street, New York 5, N. Y. Also available is an analysis of
Borden Company.

American

—

Corp.—Bulletin—Bache

Mississippi

Hentz

available

C. F.

All

&

Co.—Data—Steiner, Rouse & Company,
Street, New York 6, N. Y. Also available are data
on Singer
Manufacturing Co.
Northeast Metals Industries,
Inc.—Analysis—Pearson, Murphy
& Co., Inc., 50 Broad
Street, New York 4, N. Y.

statistical
—

Pressprich

19 Rector

Scribner, Union Trust Building, Pittsburgh 19, Pa.
•

A.

—

W.

Atwill & Co., 605 Lincoln
Road, Miami Beach, Fla.
National Cash Register

H.

on

Clair, Mich.
Aug. 19-20, 1959

Canada)

Mills, Public Relations

Company—Analysis—Laird, Bissell & Meeds,

Mercantile National Bank

panies.

Western Pennsylvania Corporation

Hardy & Co., 30

New York 5, N. Y.

a

Corp., and

Aug. 14-15, 1959 (Detroit, Mich.)
Basis Club summer outing at St.
Clair Inn and Country Club, St.

are

Street, New York 5, N. Y.

J. Heinz

Interchemical

—

&

Suggested Issues—In current issue of Market Review—Harris,
Upham & Co., 120 Broadway, New York 5, N. Y. Also avail¬
able are reports on Universal Oil Products and Universal
Match

circular

120

Johnson, 15 Southeast Third Avenue, Fort Lauderdale, Fla.
Systems^. Inc.—Memorandum—Boenning & Co.,
1529 Walnut Street,
Philadelphia 2, Pa.

Trip to Russia—Report—Bregman, Cummings
Co., 74 Trinity Place, New York 6, N. Y.
on

Co.,

Information

Comparison of 11 Philadelphia
Company Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.

Reflections

Co.—Memorandum—R.

Home Owners Life Insurance Co.

4, N. Y.
Stocks—Stroud

&

Broadway, New York 5, N. Y.

and market performance over a 20-year period—
National Quotation Bureau, Inc., 46 Front Street, New York

Bank

Heinz

Wall

yield

-

McKinnon,

Department, 9200 Wayzata Boulevard, Minneapolis 26, Minn.

II.

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau
Averages, both as to

Philadelphia

&

same

—

Banking,

University of Virginia.

Worth

on
Pennsylvania Railroad Co., Pullman
Incorporated,
Standard Packaging Corporation, and
Transamerica Corpo¬
ration.

Letter"—

(Charlottesville,

Consumer

of

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

Company—Data—Oppenheimer, Neu
Also in the

Country Club).

Va.)
School

-Club,:

G.

data

issue

same

reports

Motor

Broadway, New York 5, N. Y.

Hayden, Stone & Co., 25 Broad Street, New York 5, N. Y.
In

Columbine

Aug. 9-21*, 1959

Peabody & Co.,

5, N. Y.
Supermarkets Inc.—Analysis—R.

National Stores, Inc.—Report—Thomson
Broadway, New York 4, N. Y.

2

New York.
on

Quality

First

Broadway, New York 7,

Bank

Stocks—Data

Co.,

an¬

Association
Group (dinner Aug. 6 at Petro¬
leum Club; field day Aug. 7 at

Street, New York 5, N. Y.

Delaware—Analysis—L. D. Sherman & Co.
Broadway, New York 6, N. Y.
First National
Stores—Memorandum—Francis I. dupPont •&< ?.fV
Co., 1 Wall Street, New York 5, N. Y.

Stocks—Quarterly report—New York
Hanseatic Corporation, 120 Broadway, New York 5, N. Y.
New York City Bank Stocks—Comparison and analysis of 12
banks—Laird, Bissell & Meeds, 120 Broadway, New York 5,
Oil

&

Co., Inc., 160 Broadway, New York 38, N. Y.

Ford

City

Lewis

39

New York.
York

Kirkpatrick, Inc.

25th

and field

day
jointly with Denver

held

be

Colo.)

Denver

Investment Bankers

Federated Corp. of

Cement Co. and a survey of the Steel Industry.
Japanese Stocks—Current Information — Yamaichi Securities

New

&

Casualty Tower, Nashville 3, Tenn.
Air Lines, Inc.—Review—John H.

Wall

Dilbert's

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

Ill

&

Detroit Harvester Co.—Memorandum- -Kidder
17 Wall Street, New York

Beacon"—Nomura

Securities

Company of New York, Inc.,

—

Continental

Eighth Avenue, New York 11, N. Y.
Japanese Stock Market — Study of changes in postwar years—
In

—

Corp.—Circular—Clark, Landstreet

Life

Investment

Also

Ceco Steel Products Corp. and Wis¬

Co.

&

discussion of outlook for the Boating In¬

a

to

Inc.—Memorandum—Howard,

Corp.

(Denver,

of

niversary dinner

Corporation.

Weil, Labouisse,
Co., 222 Carondelet Street, New Orleans 12, La.
Memorandum
Green, Ellis & Anderson, 61
Broadway, New York 6, N. Y.
Carwin Company—Analysis—Putnam &
Co., 6 Central Row,
Hartford 4, Conn.
.
Cenco Instruments—Report—Ira
Haupt & Co., Ill Broadway,
New York 6, N. Y. Also available is a
report on W. R. Grace

&

the

Assets

on

Club

Bond

Friedrichs &

Carrier

M.

reports

are

Bankshares

1959

6-7,

Aug.

Company—Report—The Milwaukee

companies of the United States as of June 30, 1959—
New York Hanseatic Corporation, 120 Broadway, New York 6,

available

IN INVESTMENT FIELD

Organization, 120 Broadway, New York 5, N. Y.
Co., Inc.—Analysis—Schweickart & Co., 29 Broad¬

New York 6, N. Y.

Nov. 1-5, 1959

(Boca Raton, Fla.)

National Security Traders
ciation

Annual

Asso¬
of

Convention

the Boca Raton Club.
Nov. 29-Dec. 4,1959 (Bal Harbour,

Fla.)
Investment Bankers Association
Annual

Convention

Americana

the

Hotel.

at

April 6-7-8, 1960 (Dallas, Tex.)
Texas
Group
of
Investment
Bankers Association of America
25th

annual

Sheraton

meeting

at

the

Dallas.

With Buckner & Co.

Air

Express International Corp.

Edward

NSTA Notes

associated

The

largest forwarder, clearance broker

and

con-

ADDITIONAL REGISTRATIONS

of 353 offices and
agents

the
a

network

throughout the world.

NSTA

CONVENTION

following

are

National

registrations for the annual convention of

Security Traders
Raton, Fla., Nov. 1 through 6,
since forwarding:

♦Samuel Weinberg

Association

1959.

to

These

be

held

at

Boca

have been received

S. Weinberg, Grossman <& Co.

New York, N. Y.

Josephthal & Co.

New York, N. Y.

Ira Haupt & Co.

New York. N. Y.

Albert A. Hewitt

*

First California Co.

San Francisco, Calif.

Albert G. Woglom

Clayton Securities Corp.

Boston, Mass.

Louis H. Serlen

♦Harry J. Peiser

♦

♦W*. J. Zimmerman

Bingham, Walter & Hurry, Inc.

*E. S.

Members New York
Security Dealers Association

74

Hydinger

HAnover 2-2460




Angeles, Calif.

Carlson & Co., Inc.

Birmingham, Ala.

Don W. Miller & Co.

Detroit, Mich.

♦Harold Shore

Harold C. Shore & Co.

New York, N. Y.

♦Arthur T. Hamill

W. E. Button & Co.

New York, N. Y.

W. E. Button & Co.

New

Manney <& Company

Dallas, Texas

♦Irving Manney
♦Robert D. Brearley

Tdelype NY 1-376; 377; 378

Cleveland. Ohio

♦Don W. Miller

Samuel F'. Colwell

Trinity Place, New York G, N. Y.

Los

The First Cleveland Corp.

Martin J. Long

Troster, Singer & Co.

East

Francis has become

with

Buckner

♦Harry Simmons
♦Mr. & Mrs.

York, N. Y.

'

Wood, Gundy & Co., Inc.
Simmons <& Co.

,

New

York, N. Y.

New York, N. Y.

&

Co.,

42nd

Exchange, where he will be
primarily concerned with serving
Stock

The

solidator of international
cargo with

FOR

P.

Street, New York
City, members of the New York
120

institutional

accounts.

190

Volume

Number 5870

. . .

of

i
:

Dana

Investment

addition, has has taught

Co.,
New
from 1954 until he
joined Dean Witter & Co. Pre¬
viously he was with the Research
Department of Laurence M. Marks

Conklin Joins
Dean Witter & Co.

York

C. H.

r;

ate

City,

■,

Dean

Witter & Co.,

&

members of

with

York Stock Exchange
and other leading security and
commodity exchanges, announced
V"M that G. Howard Conklin has
the

New

joined the

V
'

^

i:

14

Mr.

He

has

is

and

who

Re¬

&

Co.

as

of

one

have

a

number

a

group

written

curity

of

that

of

on

Analysts;
a
member
of
Society's
Education
Com¬

appointed

was

member

a

Forum;
earlier

with

and

of
a

of

the Wall
member of

Forum.

Chase

has

Pacific

been

the

underwriters

national
Fund

of

Canada,

Scudder

announced by Dorsey

in

Bank,

In

Group of mutual funds.

Hugh

W.

Long

it

Bingham is

a

for
was

on

the

Sales

in

the

of
area.

Baker is
&

native of Los

now

with

R.

J.

Co., Baker Building.

$50,000,000

STATE OF MICHIGAN
5%, 4% and 4V&> Trunk Line Highway Bonds (Series II)
(Payable Solely from Specific Amounts of Motor Vehicle Fuel and Weight Tax Allocations)
Dated
Bonds

August 1, 1959
maturing in the

Due March I,

.

years

as

shown below

1981 to 1985 shall be subject to redemption prior to maturity at the option of the State Highway Commissioner on any

after March 1, 1974, in whole or in part, by lot, in the inverse order of maturity, at 103% if called on March 1,1974, and
decreasing said redemption price by yi of 1% on March 1 of each year thereafter until March 1,1984, on and after which said date such call shall be at par,
plus in each case, interest accrued to the date of redemption.

interest payment

1

date

on or

Principal and semi-annual interest (March 1 and September 1, first coupon payment date March 1, 1960) payable at City Bank, Detroit, Michigan, at
The First National City Bank of New York, New York, N. Y., or at Continental Illinois National Bank and Trust Company of Chicago,
Chicago, Illinois. Coupon bonds in the denomination of $1,000, registerable

as to

principal only.

Interest exempt, in the opinion of Bond Counsel, from Federal Income
under existing Statutes, Regulations and Court Decisions

Taxes

Exempt from any and all taxation in the State of Michigan or any Authority within the State
THESE BONDS

are

issued in accordance with the provisions of Act 51, Public Acts of Michigan, 1951, as amended,

and pursuant to

a

adopted by the State Administrative Board of the State of Michigan, for the purpose of providing funds for the construction of
certain portions of the State Trunk Line Highway System. These Bonds are not general obligations of the State of Michigan, but are payable
solely from moneys appropriated by the provisions of said Act 51, Public Acts of Michigan, 1951, as amended, to the State Highway
Department from the Motor Vehicle Highway Fund, being a separate fund in the State Treasury consisting of the proceeds of taxes levied
pursuant to law on gasoline and motor fuels, and on motor vehicles registered in the state, and a sufficient amount of said funds have been
irrevocably appropriated by law, and resolution of the State Administrative Board adopted pursuant thereto, to pay the principal of and
interest on said bonds as they mature.
resolution

t

u

:

AMOUNTS, COUPON RATES, MATURITIES AND PRICES
Coupon
Raite

Amount

Yield

Coupon
Amount

Yield

Due

5%

1961

5

1962

3.20

1,225,000

5

1963

3.30

1,280,000

5

1964

$1,665,000

3.00%

1,170,000

Due

Rate

1,820,000

1965

or

Price

4>/4%

1977

4.15%

41/4

1978

4.20

2,475,000

41/4

1979

4.20

2,585,000

41/4

19S0

2,705,000 ^

41/4

1981

2,825,000

41/4

1982

4%

$2,265,000

4

1971

100

2,370,000

1972

41/4

4.05%

41/4

1973

4.10

1,985,000

41/4

1974

4.10

3.55

Due

Rate

Amount

100

1,900,000

5

1,335,000

1,740,000

Yield

Coupon

Price

1970

3.40

$1,120,000

or

4.20

~

100
100

1,395,000

5

1966

3.65

1967

3.75

2,075,000

41/4

1975

1,460,000

5

4.15

2,950,000

41/4

1983

100

1,525,000

5

1968

3.85

2,170,000

41/4

1976

4.15

3,085,000

w

1984

100

1,595,000

4

1969

3.95

3,280,000

41/4

1985

100

These bonds

are

(Accrued interest to be added)

and if issued and received by us, subject to prior sale and the approval of legality by Messrs. Miller, Canfield, Paddock and
offer to sell these securities; said offering is made only by means of the official statement, copies of
be obtained from such of the undersigned and other underwriters as may lawfully offer these securities in this State.

offered when,

as

Stone,

Detroit, Michigan, bond attorneys. This is not an
which may

0

•

Blyth & Co., Inc.

Smith, Barney & Co.

C. J. Devine & Co.

Eastman Dillon, Union Securities &

Phelps, Fenn & Co.

Kidder, Peabody & Co.
Salomon Bros. & Hutzler
A. C.

Allyn and Company

F. S. Moseley

& Co.

Dean Witter & Co.




Co.

Bear, Stearns & Co.

J. C. Bradford & Co.

Blair & Co.

Clark, Dodge & Co.

<

Goldman, Sachs & Co.
R. W. Pressprich & Co.

'

Stone & Webster Securities Corporation

Braun, Bosworth & Co.
Incorporated

Hemphill, Noyes & Co.

Reynolds & Co.

W. E. Hutton & Co.

First of Michigan Corporation

Glore, Forgan & Co.

Incorporated

Ira Haupt & Co.

Francis I. duPont & Co.

Harriman Ripley & Co.
Incorporated

Merrill Lynch, Pierce, Fenner & Smith

Shields & Company

Incorporated

Estabrook & Co.

Drexel&Co.

0

_

Equitable Securities Corporation

Ladenburg, Thalmann & Co.

White, Weld & Co.

Incorporated

Alex. Brown & Sons

Halsey, Stuart & Co. Inc.

Lehman Brothers

B. J. Van Ingen & Co. Inc.

Paine, Webber, Jackson & Curtis
Hornblower & Weeks

L. F. Rothschild & Co.

Shearson, Hammill & Co.

Lee

A. G. Becker & Co.

Incorporated
Higginson Corporation

F. S. Smithers & Co.

Wertheim & Co.

a

Pacific

William
Messrs.

MINNEAPOLIS. Minn.—Guy G.

Ju'y 31, 1153

'

in

for

With R. J. Steichen

Richardson,

New Issue

:

active

business

Bingham and Sill will make their
headquarters at 650 South Spring
Street, Los Angeles.

president of William Street Sales.
Mr.

years

been

representation

Street

of William Street Sales,

Inc.,

of

fund

9

Coast. Charles F. Sill, Jr., will be
associated with Mr. Bingham
in

repre¬
South¬

west

area

the

Manhattan

published

the

Bingham

senior regional
for

experience

Harper & Bros.

and

C.

sentative

has

and

mutual

number

The One William Street Fund and

business

The

the

William Street Sales

of

member

a

Society

Charles

Financial

His

in¬

is

York

Angeles

Bingham & Sii! With

at

Se¬

Street
the

of authors

book

a

be

to

December by

New

mittee;

written

vestments,

Vice-President

Conklin was

consolidated

was

Witter

articles for The Analysts Journal,

firm, in its office at
New York City,

Manager of the Industrial
search Department.

which

Dean

gradu¬

a

investments

Conklin

Mr.
The

July 1, 1959.

Wall Street,

as

Co.

in

course

Rutgers University.

*

;r

(521)

The Commercial and Financial Chronicle

Weeden & Co.
Incorporated

Wood, Struthers & Co.
1

Steichen

10

The Commercial and Financial Chronicle

(522)

.

Thursday, August

.

.

6

Inflation Revisited?

who
emerged as. the hero of the recent
recession by sustaining purchases
of basic goods and services now
threatens to swamp the market
with
a
record-breaking
buying
spree — outdistancing
anything
previously seen in the postwar
period.
'
Spending for residential hous¬
ing has risen very rapidly in the
past few months and at current
rates
1959
can
be
expected to
dwarf outlays for
any
previous
years, even 1955 when residential
construction
totaled
almost
$19
Meanwhile,

Associate Professor of Finance

University of Michigan, Ann Arbor, Mich.

Michigan economist fears inflationary price rise and, thus,

after noting we have
"on our hands a boom of record proportions" and that our
"relatively small amount of slack or expansion room will dis¬
appear before the close of 1959."
He opposes proposals to
peg the par value of government bonds, favors restrictive
monetary-credit policy, and calls for government spending cut
unless greater expenditures are matched by increased taxes.
anti-inflationary

prescribes

measures

Regardless of the terms of settle¬
ment of the current steel

negotia¬
tions, the U. S. economy will again
inflation

suffer
is

fever

1959

before

The

over.

virtual stabili¬

the self-

lied without resorting to

delusion of

inflation?

billion.

Spending for industrial plant
and
equipment
has
increased
much
more
sharply than most
forecasters thought possible even

ty of prices

six

enjoyed dur¬

turing

months

ing the past 15

been

more

since

be replaced by

from

buttons

bulldozers.

to

Unless

we

industry

d i

s play
un¬
precedented

in

courage

limiting
e

r

n

spending
state and

Prof. Thomas Gles

and

—

local

as

well

as

Federal

accept

icy, the record-breaking gains in
demand now shaping up for the
last six months of 1959 will push
well beyond the capacity of the
American
economy
to turn out
us

goods and services. The outcome
of negotiations in the steel indus¬
try can more accurately be re¬
garded as symbolizing the buo¬
yancy
of prices in all areas as
market demands expand,
rather
than

as

a

force

which

itself

determine which way the

price level will
The

will

general

move.

basic problem

can

can

be stated

spending

sectors

of

plans

fated by the

the

simply: How
of

ruii

is

all
be

economy

major
satis-

off

for

inadequate

above

had

<£33 billion.
ventories

levels,

ago

year

risen

but

statement

this

demands

productive

011

generated by; current
be
supplemented by
firms

to

capacity

sales

rebuild

of

their

inventories during the next
months, particularly inven¬
tories
of
goods-in-process
and

own
six

finished product.

pated

steel

The long-antici¬

strike

undoubtedly

by Prof. Gies before the
Michigan,
Ann
Arbor,

tories

University
of
Mich., July 14, 1959.

but

during the first half of 1959,

even

if the strike proves

brief,

and

fully 5%

have

that

the

out

wiped
earlyrl958

produc¬

attained

ahead of the

a

pre-

previous

an¬

sharply increased productivity
(output per worker in manufac¬
turing rose 8% between early 1958
and

for

of

for

demand

t..e

(15

the

evidence

lating

weekly of
spending
urrbles.
Outlays

spurt
c

for

and

confidence

ing paychecks have
of

major

now

major

employment
months

and

of

to

last

year

consumer

appears

for still further
spending is given

strong support from the behavior
of discretionary
income — that
portion
of
disposable
income

income

has

seen
during recent
distinct limitation?.

have

to

69.4

is

million,

translated

million

2.8

tuis
into

workers.

labor

a

nearly

new

also

have

tum

in recent months and

last

half

been

gaining

rec¬

momen¬

can be I
expected to expand rapidly in the
§•

of

1959

inventories!

as

financing!,

require added funds.
the face

In

of

have

we

record

of
on

clear

indications}

hands

our

boom

a

a

real

very

proaching
capacity.
Even

sense

peacetime

this

amount -of

It

return

a

inflation,

we

further

bank

limit

To insist at the

must

carefullyV

credit

growth.!.

time that the!

same

restraint.
the

a

be
that

or

small

purchase by

Reserve

of

Treasury/

as would be necessary;
their prices, would
re-1,

sustain

suit in corresponding increases in
bank
reserves
and multiple in¬
in bank credit.

creases

circumstances,

this

utter

folly and
mockery of

a

In present

would

certain

seem I

make

to

stabilization

any

In

1

Salle St., in

the corporate finance
d

expansion
before the

e

artmen:

p

and

reg¬

a

as

istered

repre¬

sentative, i:
been

has

an¬

nounced.

Plam¬

Mr.

ondon

w a;

formerly
President

million

Treasurer c

unemployed made earlier
to is year, it is now conceded that

2.5

illicn

r

If

may

within

go

six

low

as

mont

as

s.

seriously desire to post¬
pone
and control the assuredly
approaching inflation, we must
reshape the garment we are plan¬
ning to fit the- cloth which we
we

have

available.

shall

end

up

Rico's industrialization

momentum,
ment

the

Government

Develop¬

Bank's activities contribute

effectively than

ever to

gains

more

the stimulation of

capital formation in the Commonwealth.

During 1957-58, the Bank embarked
a

program

designed

to

on

step up

private

lending operations, and provide

greater

income to the Bank. Its
growing capital

surplus has produced

an

increased volume

of loanable funds. Other

changes include

extension of

the loan

fer
repayment

period

from 10 to 15
years for commercial and
industrial building, and
greater activity

in

making non-industrial loans.
Puerto

Rico's expanding
economy
sound opportunities for in¬

San Juan, Puerto Rico




BANK
Fiscal

FOR

be

,

•

First,

where

shall

Authorities.

give

you

Your

security

PUERTO

RICO

Agent for the Commonwealth of Puerto Rico

have

we

expenditures.
that

revenue

full information.

pro-ects
merit,

have

Arrfc Pious

control-

of government
This
inevitably

favorite

very

will

direct

area

projects,
possibly wit l real

have

to

be

postponed.

programs,

37 Wall Street

highway construction
new airports, and ot er

similarly
New York 5, N. Y.

A. D.

ant

recent);

more

MMm®

A

was

Plamondon, Jr.

consult*

a

for

n e s s.

Chairman

past
the

Electronic

tion
and

and

is

and President $
Industries Associa¬

currently

member

bUSi'
H e is

of

a

directs
commit*

various

He

also

is

American

a*

of thElectric*;

.member

Institute

of

American

Society o-

limit

means

its

medi¬

areas

and its

of

shall suf¬
of

Steel Product!
Company ar.:

tees.

to

namely. in the

can

we

lack

sil¬

spending in those

we

total

They are illustrated by the
substantial tax-free yields available in the
general obligations of the Commonwealth
municipalities, and in the

for

no

Indians

The

JR
,r^fl # JMI
tmm ir
jHR
Hi

Engineers,

our

bonds

"inflation

an

disability

net

we

an:

cine capable of
overcoming our
difficulty. Effective remedies are Metals, Institute of Radio Eng;■*
neers,
and
American Iron ai>
at our
disposal; the only problem
is learning to swallow the tonic. Steel Institute.

vestment.

GOVERNMENT DEVELOPMENT
P. 0. Box 4591

will

creates many

dealer

with

coat"—empty pockets and
ver
lining.
And the

As Puerto

Otherwise,

worth-/

have

to

sue a

wait.

larger

grammed
cal

year

S-culd

be

projects

may

A11 amatively,-

outlays

new

all

Golkin, Bomback Go.
To Bo Formed in

change, will be formed as of An13 with offices at 25 Broad StrefNew

York

Saul

Golkin.

Gecrge
Burke,

proposed for the fis¬
which
began in July

Golkin

rr.aichef

by

increased

NYC

Golkin, Bomback & Co., a men-'
ber or tne New York Stock D

pro¬

or

|
|

1

A.D.

the reek-bottom forecasts of three

unemployment

•

policy of credit

Extensive

Feceral

per¬

may

relatively
slack

-

un-*

price of Treasury securiwould inevitably dilute the

effectiveness of

to

floor

a

the

disappear
close of 1959, however, and with
it
will
disappear the euphoric
condition enjoyed during the past
six mcnths—vigorous business expaivsi n, rising incomes, improving
profits, and, most notable, a stable
general price levrl. In contrast to

industry

f.

overemploymentf

and

CHICAGO, Illinois — Alfred ft
closely ap¬
productive Plamondon, Jr., has joined Hornblower & Weeks, 134 South Li

will

room

growing

|

proportions which

threatens to bring with it
to conditions of

about

surprising to some to learn
are
presently within V2 mil¬
in

a

goods has been supported by loan
growth. Business credit demands

efforts.

of

centage

With

lion of that number and therefore

1958

of
the recent increase in purchase
of
and
durable
consumer

houses

securities,

first

of

a

ties

we

quarter

off

This year, moreover, banks
report
loan demands
significantly greater
than four years ago.
It is clear
from these reports that
much

der

force

risen

trend

1955, when
spending
touched
two-year period of inflation

Federal Reserve place

from just over $100 billion in the

$110 billion this year,

same

loan-financed

in

as

food, clothing, and utility services.
Discretionary

gains in pro ucforthcoming this
the big gains in

I

Demand for

loans is following the
as in the boom
year of

accepted proportion.

40%

abov$. such nonoptional items

it

fur¬

*

to

higher interest costs.

employment has risen
million- in the past year
May alone, employment
rose by
more than 500,0U0.
Sue.,
increases in e in p i oym en t a id
hence in real output are unlikely
to be continued even through tie
summer,
for the simple reason
that the pool of unemp.oyed labor
is
now
approaching
minimum
levels. Although agreement is in¬
complete on the precise number
of workers constituting "minimum
unemployment," 4% is a widely

top all previous records.

Expectations
rise in

that

assumed

%
I

users
of -credit will have
to do
without and necessarily those
who
do
cbtain
credit, including the
Treasury, will have to submit

two

and

Output
durables is

and

-I'

past.

Second, we shall be rcqvired
to
accept the inevitable results
of
today's restrictive
monetary and
credit
policy.
Some
would-be

by

continu¬

tremendous

a

periods

1
^

it

unfortunate

consistently declined I

Ncn-farm

grown.

consumer

running

ahead
sure

of

be

Further,

year.

equipment has already
picked up dramatically from last
year's lows, as factory ernployment

just

year,

recovery

have

nf

remedies

ich

one w

that

not

important
tivity will be

household

.

Rising
marked

the two previous bo:ms and

ther

consumer

autos

cn

substantial

necessary

anti-inflation

also is the

molt '"';

policy is the

most

of

rest

accumu¬

new

a

of

the

and accounts receivable

should

undeniable

and

in the

was

the

and

'49-'50, and '53-'54. Significantly,
however, productivity gains prac¬
tically halted in the later stages

significant for assessment
price movements, however, is

of

it

as

Nothing appears in the
to damp further gains in

area

19J9)

phenomenon of the past

more

quarters

early

gains
in
employment.
productivity las been a

Most

will

efforts

no

near

of 1959.

sales

in

the

break

a

consecutive

60

offing

sales

stimulated the build up of inven¬
*A

than

a

actually
deduring the past year from
May 1958 to 1.44 in May
195-9, signifying that the appetite
for added inventory is still pres¬
ent and growing. This means that
1.65

will be

in

declines

without

years).

In

clined

level

shows

aiready

recession peak. In terms of Gross
National Product, present output

money

quarters (7V2 years)
spending on services has

risen

whopping
Thus the ratio of in-

to

neces¬

The index of

output.

declines and

tion

of the last 30

May, manufacturers' and distribu¬
tors' inventories were $1.3 billion
meanwhile

is

it

of

while

al¬

firms.

of. swiftly

production

have

late-1957

Consumer spending on f:od and
clothing has risen in all but three

under way,

many

demands,

industrial
we

bitter

accept in the

to take stock of our capacity

increase

to

-

of rational fiscal

to

signs

;

collections, which in turn win '•>'
corresponding restriction in 1
private spending. -The
discinlh.
force

we

seem

•

tax

ly

these

advancing
sary

U

annual spending rate
of $4i-$45 billion by

an

durables

Against

'

,

likely

now

the final quarter of the year.

future.

during the past
well

now

sales.

by more than
$30 billion. This i m pressive
growth represents a combination

significant

still

shelf-stocks

bring

on

gocds

sonable bet that there

but present ratios between stocks
and fast-growing
sales are still

business

American economy in the next 12
months

to

recession

the inconvenience
and restriction of tight credit pol¬
—

rebuild

to

lowed

t

n

into

move

to

durable

in

increases

Sucn

opinion has it that mort¬

er

ness

gove

m

will

past,, spending

in the rate of residential
construction, but it remains a rea¬

ground
in the next 12
months. Inventory buying by busi¬
hig

of

advances

gains

alone the advance has
than 20%, or $2 billion,

beginning of the year.
Outlays for capital items are run¬
ning at an estimated $33 V2 billion
in the current quarter and spend¬
ing plans already announced make
it clear that capital demands of

rising prices
on everything

consumer

concensus

the

In

gage credit restraints
may
very, exceeds the highest
well fold the lid on any further nual rate of
output

the

will

the

The

market

In the manufac¬

ago.

area

months

of extended inventory accu-

ance

level.

durable

goods has followed
the pattern of changes in discre¬
tionary income, and hence pres¬
ently developing
gains in
this
mea-fure
promise
rurt.er sharp

mulatidn.

By THOMAS G. GIES*

The

ord

for

today's extremely low inventory/
sales ratio (1.44) provides assur¬

\

.

A»59

1

*

r

bership
Co.

City.

will o
BombacK-

Partners

Milton

J.

Golkin, and Jamesr,„'
will acquire a m&>

J.

who

in
is

a

the Exchange. ?'
partner in Golkin -

Number 5870

.The Commercial and Financial Chronicle

Volume

190

Lists

,

Economic Research Depart¬
ment of the Chase Manhattan
Bank. New York City, raises and
answers the question, "what are
the areas of growth in our economy?"
Y :V
■

in

BY

developments

provide
the answer.
It covers production
of some 300 items for which physi¬
cal volume data are available since
1929, or since the first year of
production. Of these 300 products

Once

71/2%

growth

with

products

be

is

such

h

products from television
air conditioners in the 1940's
tranquilizers, transistors and
transatlantic jets in the 1950's. In
addition, research and
develop¬
combined with aggressive

"Growth rates

typically are high
development
of a successful new product and
then drop as production expands.
Many products go through a "life
cycle" of: (1) rapid growth in the
period when the product is secur¬
ing universal adoption, (2) ma¬
turity in the period when growth
consumer

product

for all

take

to

new

products. / ''

over

until

1955.

products

\

Sustained

fast

air

and

trend

transporta¬

'

i

•

line.

*■

'

■

i

•

,

X

*

,

Research

and

baleful eye, cautioning

people that

another

not

we

trap.

may

reach

agree¬

an

no

tell¬

rebels

were

:

t

there

growth

the

is

the

of

ahead

chemicals

of

more

of

bulk

V

•

}

j

at

rate

a

more

velopment

of

wide

a

business.

of

variety

to

the

between

Russia has not kept a

agreements

we

single one

made with

beginning with our recogni¬
tion back in 1933. A part of that
agreement was that Russia would

her,

survey elicited

McGraw-Hill

the fact that two-

FAST

Communist

no

Average Annual Growth Rates
production data
4C%

AND

—

leaving

was

»

for

Blankets, electric

Garden
Fibre

Helium

Power steering
brakes

Aviation

Sulfa

Television sets

Polyethylene
Styrene plastics and resins
...

mowers,

Ammonium

15%

synthetic

sulfate,

Helicopters, nonmilitary
Pubbei, synthetic
Butadiene

Urea

TO 20%

propa¬

TO 40%

Plastics and

TV

resin

Broadcasting stations
Air ton-miles flown

materials

Perchloroethylene

Fibers, synthetic,

Paper

except rayon

Dryers
toffee

makers, automatic

Argon

-

Air

conditioners,

Rubber

or

latex

-

spirits
milk containers
Magnesium

Melamine resins

petroleum

polymers

in

"Shavers

Canned

20%

'

"

•

TO

Effervescent

fruit juices

Photographs, single
Ice-making machines
Phosphoric acid

30%
wines

Tractors, off-highway
Polyvinyls resins
Picture tubes,

sales

Jet fuels




10% TO

uncertain about
In his gubernatorial

are

Rockefeller.

as

be
is.

Zilka, Smither Go.

Opens Seattle Branch

some

they could get along

way

licans are to take a hand at trying

SEATTLE,

Smither & Co., Inc
the

opening

of

With Dean Witter & Co.
(Special to The Financial Chronicle)

offer to sell

nor a

solicitation of an offer to buy any of these

offering is made only by the Prospectus,

securities.
,

August 6, 1959

Y NEW ISSUES
Y

'

■

•

■

Superior Window Company ;
50,000 Shares

il¬

70^ Cumulative
.

-

.

Convertible Preferred Stook
($8.00 Par Value)

'

These shares
<Y

, ,

.

are

convertible

into

class A Common Stock at

the basic rate of

as

set

forth

shares of class A
;v

each share of Preferred Stock. They are entitled to an annual purchase fund
in the Prospectus, and are redeemable at $10.70 per share plus accrued dividends.

Common Stock for

Price $10 per

gasoline

drugs

Repairs,
Nitric

share

durables

household

acid

Chlorine gas "
Motor

truck

'

125,000 Shares

"

transportation *

Cellophane

Class A Common

Aluminum

Water

\

heaters, electric

15%

Freezers

Stock

(lOp Par Value)

Beer

Price $4 per
.

Insulating

board

and

burners,

residential

Shipping sack paper
Oxygen
Glazed
and

and

be obtained in any state from such of the several UnderwriterI
undersigned, as may lawfully offer the securities in such state.

Copies of the Prospectus may
including the

unglazed wall

floor

tile

Rayon and acetate
Calcium

share

1

hardboard

Acetylene

carbide

Distillate

type

They

with the Soviets. Now the Repub¬

paper,
are

fuel

oil

Ranges, electric
Pipelines, oil

Phthalic-anhydride

Power sprayers

Blouses

Hardwood

doors

and dusters

a

campaign he didn't use the word
Republican a single time. He ran

Formaldehyde
Phenol, natural and synthetic
Transparent film for packaging

Oil

tarpets and rugs, tufted

Mixers, food
Methanol, synthetic

Pentaerythritol

Khrushchev

be

Wash. — Zilka,
has announcedan office in the
Logan Building under the man¬
Up until now it has been the
Democrats who thought somehow, agement of C. Arnold Taylor.

Still wines
and

Plasticizers
use

never

ques¬

party.

be

are

71/2% TO 10%

foods

Ccumarone-indene

Dehumidifiers
Tape recorders, home

that

will

a

is—will

Republican party man. They can
look to him to play ball with the

dictators all right but
they are friendly to this country.
They play ball with Ihe West.

They

Trailer coaches,
mobile home type

Frozen

They

he

the

Plywood

Distilled

Skirts,^ separate

room
core

mattresses

what

Clocks

Automatic transmissions

30%

to

Ammonia, synthetic anhydrous

resins

Locomotives, diesel-electric*
Xylene
Disposals, food

Detergents, synthetic

not

as

Dishwashers

power

..

Vitamins

tion

trying to force us
hadn't
would

understandable.

is

that Nixon, liberal or

Rockefeller.

dictators

the

This

conservative—and there is

good

to invade South

Russia

nigh the unani¬
party profes¬

well

drums

Rayon and nyion tire cord
Lawn

sionals.

like

is

tractors

DDT

Power

now

us

opposition.

The

in

Acetic anhydride
Aircraft, civilian

Titanium

Antibiotics

move

reac¬

choice of the

mous

public, be invited to this country
immediately raises an outcry of

"

for

(or\from first year
available)

Air revenue passenger-miles flown
Pick-up hay balers

sponge

Nixon

Joe

Tru¬

SERVICES

Transistors

OVER

next

was

The

been

Strangely enough Senator Capesupporter

dictators at arms length. Any
suggestion that Franco of Spain,
or
Trujillo of the Dominican Re¬

This advertisement is neither an

•Y
V "

1929-57

are

the

has

to get along with them.
SANFRANCISCO, Calif.—
White
However, the exchange of visits David W. Thomas is now .affili¬
House he was asked by one of his
ated with Dean Witter & Co., 45
entourage how about that promise. will likely receive universal ap¬
Montgomery Street, members of
He,has been widely reported to proval. It will be highly popular
Great Britain; maybe not so the New York and Pacific Coast
have replied to the effect that "we in
,
popular in France and West Ger¬ Stock Exchanges.
,will pay 110 attention to it."

ognition,

growth trends are within striking
distance of the economy's."
:

PRODUCTS AND

GROWING

"I

visit

Rockefeller has in the Senate.

We have kept other and friend¬

this country. As Litvinoff, the then Russian foreign
minister who negotiated the rec¬

lustrative of major products whose

thirds of the research and devel¬
99

and

said:

his

hart is the only avowed

there herself.

ganda in

move

less

or

cement,
clothing

Steel,

automobiles

/products. v A

latter

Harry

of visits is direct¬
Vice-President

date.

After

when

to

They feel

They are

industry has been marked by de¬ keeping with the trend of general
new

as

out of Berlin, whereas if it
been

and

believed

to

and

tendency

a

products

.

soon

ly

agreement

undertake

the

old Joe made

the

on

Laos.

serve

the

as

them.

Potsdam

impressed

However,

there

highly
favorable in this country and it
has
undoubtedly
added
to
his
standing as a Presidential candi¬

Korea.

There is

attributable

Nixon's visit to Russia.

old Joe."

aside from Berlin which
to postpone the crisis
there, will not be worth the pa¬
per it is written on.
of

that

man

are

The
the

field

the

dominate

products

have

development

important role iii both
:

an

cases.

"The

Bargeron

so

they

The exchange

ly

that

agreed

was

enslave

came

Stalin

two men,

will

it

completely

and

in

Panama.

Instead, Russia has proceeded to

examples

are

played

in

Yalta

Yalta

them

to have been behind the unrest in

whole¬
embraced the Russians
we

satellite states.

Carlisle

Cuba

tion

At

-

but

of

nests

Nicaragua

possible in Hungary, Poland, Ru¬
mania, Czechoslovakia, and other

Berlin.

on

Any

of * industries Y "The same is true for moder¬
where
high growth rates have ately-growing products. But here
that
well-established
been sustained .for long periods. one \ finds
tion

a

are

Washington

elections would be held

ex¬

Communist

shape of the
"" \v'\.
*

<>»

'

•

a

into

move

.

'

Middle

Khrushchev

Is

growing

products/and

the

'

a

ing how long it will last. Even as
the visits were being announced

was

widely,

vary

Growth -^—--7^ market condition the

'

"Chemicals

thus

of

nature

for

rates

over.

the

influence in Guatemala

to in¬

lease.

American

ment

/

"Growth

gave

Quite possibly Khrushchev and

rapidly accepted of any
major consumer durable good. In,
the first 13 years of large-scale
production, 89% of all homes were
equipped with television sets. Out¬
put of 71/2. million sets was reached
in
1950 and
not
bettered again

the
market/However, there is no one
pattern of growth that is typical
begins

n-

Eisenhower

of

from

"Black and white television

incomes,

some

as

the

the ipost

is in line with the increase in pop¬

decline

its with

whole

not

pretty

come

ally in World War II and
them $12 billion in lend

an

as

change of vis¬

1948 to 1956 when
peak volume of 1.8 million units
was reached.
Then output sagged
in 1957 and 1958.
With only 12%
of all homes equipped with
air
conditioners, sales could again
show rapid growth.

in the early years of

the

upon

the

heartedly

-

He looks

ana,

and

agreement

Notwithstanding this

On

were

the

Government.

hart, Republic a n,
of Indi¬

may

rapidly

is

element in Iraq.
He is
disturbing element in our
hemisphere. The Communists
have finally been run out or at
least removed from
positions of

said

the Russians did

Communists had

filtrate

Senator Cape-

"Room air conditioner sales rose

marketing have opened new mar¬
kets for such products as alumi¬
num and plywood.

soon

dissenting
voices, including that of

be temporary; in oth¬
ers it may mark a transition to a
permanently lower rate of ad¬
vance.
Here are two examples:

ment

keep

few

no¬

a

e

s

0 w e r.

there

fast

of

experienced

products

easing

to

and

E i

not,

or

tensions will

war

Capitol Hill

7

number

Regardless of whether he
this

Khrushchev
and

slowing of growth in the
past few years. In some cases, the

and

(3)

A

hope

Washington there

In

visits between

ticeable

new

and

products.

growing

postwar period has wit¬
nessed the introduction of scores

ulation

characteristic

universal

the

.

walk

"'The

of

relaxed.

is

get long with

widespread
hailing of the
exchange of"

"Uninterrupted growth is not a

have

more

or

annum

per

Slowed

Has

there

Russia, that cold

of

rates

introduced since 1929.

been

Growth

Where

again

that maybe we can

products.

of the

men

about

own

•

than half

it will

turbing

.

More

BARGERON

also

Thus, synthetic fibers
have enjoyed rapid growth even
though output of textile products
as a whole has grown little faster
or services:
:' ■ Y ■ Y / V,- '■
than population. Synthetic deter¬
"One-third are fast growing with
gents offer another case in point.
output increasing at an average
"Air transport, an industry of
annual rate of 7V2% or more; that
commercial significance for only
is, over twice as fast as the long- 30
years, has grown through steady
term growth rate for the economy
expansion and improvement of its
as a whole.
service.
Passenger
miles flown
"One-half are moderately grow¬
have expanded at an average an¬
ing with increases of less than nual rate of 25% since
1929, while
71/2% per annum.
air freight and helicopter service,
"One-sixth are products with
though of much smaller dimen¬
declining trends.
sions, are moving up rapidly. Jet
"An
inspection of the list of
aircraft are now opening a new
fast growing items shows that in¬
era of growth.
...
:
novation
is
the
key to
rapid

growth.

CARLISLE

more

likely to
promise that he will let up in
that area. Right now he is a dis¬

products that gener¬

new

entirely new markets. Poly¬
ethylene production, for example,
has
skyrocketed — output multi¬
plied 460 times between 1948 and
1958.
In many cases, new chemi¬
cal
products
displace existing

helps

survey

East?

ate

.

current review points
"a recent Department of

Commerce

chemical

result in

The Bank s

out that

...Ahead of the News

two

what

But

1957.

"Some

the

tween

industry are on new products.
1961, 14%' of the industry's
sales should be products not sold
By

no

11

insure nothing will be done about
Berlin until the conference be¬

cal

the

bv

If it does

many.

FROM WASHINGTON

opment expenditures of the chemi¬

July-August issue of Busi¬
Brief, published bi-monthly

The
ness

.

(523)

Ninety-Nine Growth Areas in the Economy

.

.

Cruttenden, Podesta

& Co.

The Commercial and Financial Chronicle

(524)

12

personnel requirements. A change fewer
in requirements, yes; but a lower¬
ing • - of requirements,
no/
Low

Planning to Automate—Why?

assumed

and Professor of Economics

School

Graduate

■

Technology

Wright-Patterson Air Force Base, Ohio

Incentives
automate

responsible for decisions to automate or not to
outlined by the author who finds that labor cost,

are

and even productivity in general or on the average, is not an
adequate explanation for this move. Professor Green observes
that automation does not significantly reduce overall labor
costs

or

force

personnel requirement—rather it upgrades the labor
has yet to be shown that it causes permanent
technological unemployment.

"operation
nometrics"

the

as

they consider
automation

i

n

as

integral

facet of

new

vestment,

growth,

and

expansion.Ev¬
ery where

and

research"

word" of the day.
tives state that

an

—

in

the

factory,
office, retail
trade, bank¬
ing,warehous¬
ing, and dis¬

"eco¬

mated

by

tasks

are

machines

is

age

and when do I automate?"

the incentive we
are
tot explain the move
to¬

not

seeking
ward

v

,

the

and

mechanistic

activ¬

involving in routine clerical
Routine physical and
type work.
mental requirements are replaced
by man's superior abilities—judg¬
ment, reasoning powers, flexibil¬
ity, control, and the like. Newer
and higher grade activities includ¬

competitors in the
the consumer's

larly, and without delay.
Faster,
more efficient operation results.
(4) Quality: With few excep¬

age of the market

tions

find

.

•

automation

product

contributes

quality.

A

more

to

regu¬

market

place

dollar.

It

it

attract

for

may

find its

ductive

make

is

service

then

tends

precisely equal

more

a

to

con¬

tribution toward attainment of the

i d ered

objectives of the business.

reliable

no

measured
of

ence

has

source

and

precisely
the

proved

significant

exist¬

permanent

Thus, technological

unemployment.
synonymous with efficiency.
Automation may be, and probably
ponents of automation contend its augmented through technological is, a factor
contributing to the
processes
keep unit costs down capital
investment — modernized pool
of unemployment at
this
and
thus
promote and enhance tools, equipment, machines, and time, but certainly automation is
economic advantages to be gained. facilities.
only one of many forces at work
It is the source, variety, and na¬
Does this reasoning follow, how¬ determining the level of employ¬
ture of these
economic advant¬
And,
ever, -as an
explanation for the ment and unemployment).
ages that we intend to explore in
present, rapid move toward the if as generally reported, the total
this discussion.
is
automatic
rarely
reduced,
factory,
office, - and wages-bill
Ex¬ ^effective

utilization

labor

of

is

ity

is

in

terest.

Many writers endeavor to dif¬
ferentiate, as a matter of distinct
and

automation

between

mechanization.

ence,

for our

terial and

differ¬

purposes,

is imma¬

irrelevant to

this pres¬

We

entation.

will lump recently
technology — available

developed

and in use—into

call it

This

category and

one

technological capital invest¬

the

and

indicates

the

is

answer

exe¬

evidence

to

the

wherein

date

Discussion with

warehouse?

Mechanization

cutives

importance,

ficial
small
need

the

consumer's

in¬

best

frills, being a super¬
dressing and a relatively
of

part
not

total

urgently

cost

be

anyway,

automated

in the interest of either

quality

or

efficiency.
(5)

Improved

Utilization

Closely allied with
pace
is the notably

chine

portant
tion.

factor

of

FRANCISCO, Calif.—Al¬
Jacobs,
Vice-President,
Crocker-Anglo National Bank,
San
Francisco, has been elected
J.

ma¬

the

im¬
utiliza¬

capital

Automated

of

SAN

ger

capital

-

board

Total

across

negative.

cantly

hardly,

smaller/

if

the

incentive

for

through

automation?

wage

-

Incentives to Automate

bills following automation are re¬

portedly

lies

improvement

ever,

Overall

signifi¬

(1) Improved utilization of em¬
savings ployee knowledges and skills: Man

from decreased wages expense are

equipment

-

machines

America

require- significantly
mar¬

automation

is

the

of

more

tate

the

elimination

of

certain

is

types

of

low

level

jobs

whose
has failed

considered

process.

♦Professor

Green

and

Minister

of

Finance,

Amenca.

He

Associate

of

"•

»«

formerly

was

Financial

Advisor

Eco¬

to

Columbia,
&

South
'

„»•■--•>«•

Griffenhagen

the

.r

Associates.

Typically,
automation
reduce

its

the
does

firm
labor

costs

or

with

compared

Safety:

tributes

to

significantly conditions.

not

overall

Automation
safe

more

Iron

hooks

human hands and fingers.

announcement is neither an
offer to sell nor a solicitation of an offer to buy any of these
securities,
The offer is made only by the
Offering Circular. These securities are

offered

con¬

problems

of

working speeding

the

manager's

achieving

improvement

in

as a

Result:

speculation.

August 3,1959

Space

schools,

of

less

<9*COI?LOH (yCsanb (2
ov^ovaiion
Common Stock

haps,

be

requires
working
less worker

aisle

bench
area

occasion,

can

together

shortening the line and
on

or

space,

sequence

closer

a

costs.

less

allowing

lines where before there

was

per¬

two

of

to

are among the in¬
automate. Utilization

labor skills

is

improved, skills

of lower value with low
marginal

Copies of the Offering Circular

share

may

States where the securities

be obtained only in
be legally offered.

productivity are eliminated, and a
shift to higher level personnel re¬
quirements, is apparent. Modern¬
ized technological investment
has,
we can
hope, wiped out many dull,
routine, low level jobs forever.
Certainly, the improvement in the
utilization

of

skills

may

potential

and

man's

higher
is

to

Bank

since

Croc-

A

-

1951

n

g

and

1

o

is

charge of the bank's investment

portfolio.
In

1955, he was elected Secre¬
tary-Treasurer of the California
Group,

serving
for
two
elected Vice-Chair-

IBA,

He

years.
man

of

1957

was

and

the

California

Chairman

He is also

a

in

Group

in

1958.

member of the San

Bond

president,

Municipal

past

and

Club

Francisco

Club

Bond

San Francisco.

With H. A. Riecke
PHILADELPHIA,. Pa. —H. A.
Riecke. & Co., Incorporated, 1433
Walnut
Street, members of the
Philadelphia - Baltimore
Stock

Exchange,

Mrs.

that

announce

Benjamin F. Norwood has become
associated with them as a regis¬
tered representative.

time

the

firm

E.

Sobol,

Adam

At the same
that

announced

Jr. joined their

statistical department.

one.

These, then,
centives

(Par Value $.01 per Share)

placed

Its

constitutes

overhead

in

in

plants.

and

utilization

aspect

space,

thus

in

Space
perennial

offices,

effective

often

National

been

of

dent

Jacobs

.ker

Utilization:

desk space,
and
machines

300,000 Shares

per

Alger J.

IB A..

has

Vice-Presi¬

a

of

(6)

Automation

NEW ISSUE

$1

Group,
He

same

through
worker's move¬

the

up

the

pace

replace ments.

major

Price

of

California

the

leases

(2)

through

Jacobs

currently

Chairman

and

always to be a
problem and in short supply

such

Mr.
is

rated

seems

This

1959.

a

personnel.

No Overall Labor Change

year

begin¬
Dec.
3,

ning

High utili¬
poorly designed machine tool. installation is to pay.
negligible.
On the other hand, His
strength is limited, his frail¬ zation rates are assured with co¬
wage increases above and beyond ties
ordinated automatic transfer be¬
are
many, and his personal
increases in productivity necessi¬
motivation is crucial to attitude tween processes, electronic control

technological investment in auto-

nomics

term

of

for

three

a

capacity if
technological investment
or

Bankers

Association

ginal efficiency of automated cap¬
ital equipment is high, but not¬
withstanding, the utilization rate
reported
as
necessary
must
be
80%

Invest¬

ment

and

large capital investment. The

of

governor

Capital:

productivity. Automation re¬ of pace and self-adjustment, and
employees
from
menial uniformly paced machine feeding.
marginal productivity
tasks and frees them for higher With automation, the entire line
to keep pace with its increasing
by business executives as an in¬
level work more compatible with can be
paced according to the
price.
Thus
the
ratio
between
their
true
tegral facet of today's planned
productive
potential. capacity rate of the slowest ma¬
marginal
physical
productivity New skills and
If
knowledges re¬ chine in the sequence flow.
capital investment. The economic and factor
price for this type pro¬
quired by employees in automated more speed is desired, elimination
flavor of this analysis is summed ductive service, is in current un¬
offices
and
factories assure the of this bottleneck is an engineer¬
relation to the other
up in the question many execu¬ balance in
more
effective utilization of hu¬ ing task, which even though diffi¬
factors utilized in the productive
tives are asking themselves: "Will
man
talents and an
upgrading of cult, is relatively simple when
ment. This follows from the above

—that

may

The

—-

and

percent¬

slipping. It

increasingly difficult to
and
keep high calibered

larized uniformity and continuing and
Traditionally, economists have
popular .-"buzz
responsible employees.
And,
adherence to the range of stand¬
Business execu¬ postulated the thesis that employ¬
perhaps, a key to the incentives'
ards set into the machine by the is the
ers add capital equipment to off¬
ability to raise the marginal
set high or rising labor costs.
planning,
scheduling,
pro¬ attendant, results in a better qual¬
We ing
efficiency of capital through more
repair
and
mainte¬ ity product and a minimum of effective
all recognize that labor, working gramming,
utilization.
with capital equipment, is more nance are growing in number. The waste
and rejects all along the
Technological
capital
invest¬
efficient
and
lower
labor
unit machine operator is becoming the line.
It is true that automation ment is a
means
of
maintaining
costs are attained.
Through tech¬ machine attendant, a close observ¬ requires a considerable degree of the firm dynamic and the
econ¬
and
this
seems
nological investment the marginal ant of machine performance and standardization
omy growing, of increasing real
efficiency of labor is raised and on the alert to maintain mechan¬ completely appropriate as regards per capita income
through im¬
the financial manager maintains ical functioning.
the major part of most products.
proving productivity, of raising
balance between the ratio of mar¬
Certainly, the labor force is ex¬ Style and differentiated product personnel requirements and em¬
ginal physical productivity of each periencing an upgrading, but not characteristics are quite typically ployment
levels, and of contribut¬
type productive service used and a
significant reduction in
size. superficial to the basic
product ing to profit margins and GNP.
the price of that service.
Standardization and uni¬
Every (Some reports seem to imply dif¬ itself.
dollar 'spent for each type pro¬ ferently in this
regard, but as yet, formity of "basic" product qual¬

channels—au¬

Automation

1959

and

ities

equipment pay? And why

tribution
tomation
c o n s

back

and

Automation is rapidly replacing

lost

6

'

of Business

Air Force Institute of

accidents,

Thursday, August

.

.

automation, However, at the
usually physical strain and fewer hernias margin in low level routine
tasks
tech¬ -and sprained backs occur.,
increasing wage rates
outstripping
nological gadgets.
Work- involv¬
(3) Faster Machine Pace:
Un¬ productivity increases do
provide
ing transfer of partially completed hampered by poorly coordinated, a strong incentive which
financial
items between machines or proc¬ and sometimes
lackadaisical, hu¬ managers dare not ignore.
esses
in sequence
is eliminated man functioning and
attention,
Raises Efficiency of Capital
through transfer from employees machine pace can be increased.
to
automatic
equipment.
Much Heretofore, transfer of materials
In addition, the
tempo of tech¬
heavy
work
involving turning, from one machine or process to nological
competition
in
both
lifting, pulling and shifting, is the next determined machine pace processes and products is
becom¬
gone; routine work of counting, and utilization.
Now, automatic ing increasingly severe. The
firm
adding, measuring and computing transfer
equipment
coordinated that fails to meet the
automation
is reduced;
the employee's acu¬ carefully with feed and output challenge
may find itself unable
men
replaces the strength in his rates do the job uniformly, regu¬ to cope with its

level,, routine

By JAMES L. GREEN*
Chairman of the Department

disabling

hands and fingers. Also with ma¬
chines doing the heavy work,;less

.

Two With Brush,

Slocumb

(Special to The Financial Chronic.'^)

SAN

Calif. —
Richard
McCart have joined the staff of
Brush, Slocumb & Co., Inc., 465
California
St., members of the

Allen

FRANCISCO,

H.

Armstrong and

New

York

Stock

Pacific

Coast

Exchanges.

and

Jo;ns F. I. du Pont

level

(Special to The Financial

labor's

Chronicle)

SAN FRANCISCO, Calif- —
advantage.
There will
be painful adjustments for
DonaM 1*1 tchell has become con¬
some,
it is true, but
rising material wel¬ nected with Francis I. du Pont
fare
standards
are
allied
with & C^., 317 Montgomery St.
rising
productivity
levels.
In¬
creasing productivity is equally
Elw^r*hy Adds to
(^nee'a! to The Financial Chronicle)
significant to the firm and to the

long-run

Ross, Lyon

&

Members New York Stock
Members American Stock

41

East 42nd Street




Co., Inc.
Exchange
Exchange

Staff

New York 17, N.Y.

ppnnomy.

clude
t1Tr'+*

We

can

cost and
4*

r-^ral

or

on

con¬

produc-

the

aver¬

S/*T
Job
nrUl-

~
'

'

FRANCISCO,
^altonis
Jfr On

Calif-

—

now

affiliated

111

Slitter St.

Number 5870

190

Volume

(525)

The Commercial and Financial Chronicle

. . .

in lower rated mu-.
nicipals outstanding resulting from

Re-Examining the Practice oi
Favoring Top Rated Municipals

policies

Inflation-induced rediscovery that credit ratings do not meas¬
all that should be measured in judging the worthwhileness
of an issue is documented by Mr. Westcott's analysis of state
and
municipal bond price movements. The Chicago bank

ure

fluctuations
in
planning
municipal investment port¬
and might find it wise to
weigh their holdings less heavily
with
issues
carrying top credit
their

confidence

loss

by

for

market

the

necessitated

times

has at

ers

bond average

p^ri C es3,

Credit Rating

Of

If

infrequent
during the depression years).

In the

that ex-

than

1111111

standing.

Sgra. K1118

Logical rea-

at

,

price

dustrial

bonds

was

slightly in excess of

compared with the average yield
at which each of the four groups

differently rated bonds could
have been purchased during the
0f

glance would appear to be a

dis-

parate movement in the yields and
prices of differently rated issues
of municipal securities. The average investor, it is felt, is of the
Opinion that the risk Of lOSS incurred in the ownership of fixedreturn
obligations carrying
the

ejght_year period it becomes clear
that the rapge of yield change was
jegg
case
0f municipals
carrying the lower credit ratings:

Rating

1951-1958

%

higher credit ratings as assigned
by the rating agencies is less than

AAA
AA

2.33
2.54

25.7
26.9

of lower rated issues.

A

2.89

23.5

part, this conclusion is correct
for in assigning ratings the objec-

BAA

3.32

19.9

in the

case

In

tive

is to measure as carefully as
possible the likelihood that interest on an issue will be paid as it

becomes
letned

due

at

and

that

will

it

be

maturity.

.

d

^bligations was not
lessf stin the factor
rate"

However, in recent

risk

bore

investors have discovered
(or re-discovered to put it more correctly)

Prosperity

tfaat the risk of loss

*

years

by virtue of

The
ice

failure to pay interest when due

a

or

principal

repay

the

risks

return

but

is

investor

an

obligations

Z,Z

•

edged

municipal

one

of

fixed-

m

must

heavily

on

^tness®s a of his ™pl+d
™T.e
the price
giltholdings

Enhances Their Value

reasons

the

for

greater

stability displayed by muj
iggu/s with the lower
ratings are not difficult to

f.

j

d

AAA

assume

bond

more

tbe higher rated issues.

Interest Rate Risk

t

th

the

m

tLrS!1
therefore, that every

seem
seem,

™
inves-

into

then

he

little

will

wish

consideration

to

do

the Pacific
He

was

The

Tenets

of

ag

a

cbanges

[n

including polio.

bilities,

consequence

the

level

of

TUSCALOOSA,

has

office

members

W. G. Nielsen Branch
Nielsen

AA

A

anH

ginning

S

a

in

Treasury
cord"

.

tI,!^

Moodv's

i

fSwfnJw

Usually

of

Vari¬
High-Grade

direction

the

outstanding

...

interest rates

as

bonds

of

a

neither

an

opposite circumstances exist, of

gs .ot
course, during periods of recesas assigned by giop> Such periods in recent years
rV1CG'bave been characterized by sub-.
year of«the stantial declines in interest rates
mSwVeTt aC; as a result of Federal Reserve
£*
fiJ intervention in the market to ease

OMAHA,

of Betzelberger

Market with interest rates
directly

stemming from easier credit con-

a

influenced
temand

money

by credit supply and
forces) and ending in




iate recovery.

Lower interest rates

ditions have acted to cancel out
part of any price decline (and

a

Lawrence

Colo.

has

Neb.
has

—

Charles L.
added to

been

the staff of Stern Brothers &

—t—

Joins

—

William S.
connected
First Na¬

Gage-Wiley

(Special to The Financial Chronicle)

SPRINGFIELD,
G.

Barry

has

Gage-Wiley,
Bank

Mass. —Joseph

joined the staff of

Inc.

Third

Building.

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

buy any of

August 6, 1959

The Cmwell - Collier

Publishing Company
Common Stock

(Par Value $1 per Share)

Price

$21%

per

Share

V

Copies of the Prospectus may

*

t

:

.

.

*

be obtained from the undersigned.

i

Carl M. Loeb,

Co.,

Building.

Insurance

p

credjt and thus attempt to stimu-

mencement

of

Stern Bros. Add

200,000 Shares

*

G.

branch

(Special to The Financial Chronicle)

NOT A NEW ISSUE

lower credit

sidered marking the
of
free

Co

a

Boulevard

Brand

these securities. The

,

AAA

A

801

W.

—

has opened

Co.

office at

™

carrying credit rattags

Calif.

GLENDALE,

under

Coast Stock Exchange.

become
with L. A. Huey Co.,
tional Bank Building.

Investment",

This announcement is

St.

T. Montmeny.

formerly with First Cali¬

DENVER,

*

.

Tenth

2008

at

Winch.

(Special to The Financial Chronicle)

rise market prices are depressed
arid as rates fall market appreciation should occur. However, out-

a

,

—

management of Robert

j

•

Frank
opened a

Ala.

Co.

&

absent

only
interest

standing feel not only the influlikPhhnrS. J Slder n° °nly *he ence of changes in interest rates
terest and
thl but also changes in general ecorhannoc
? 1? ^11
If
nomic conditions, influences that
essarv
v
v,
1^" tend to work in opposite direcdurincr
i? boldin^ tions in determining the market
rates
of higher interest. ieveis at which the bonds are
nfnf f? depressed market prices traded. As business conditions
ligationfnTtf^'f nTif c?u£on °br improve and incomes rise, inveshas narfieniV felt thls latter risk t
* view more optimistically the
Sl S pertlaen£e for com- prospects of bond interest and
weiaheH
ifn^ s k 0
d be principai being paid when due and
genfmidinlr£Ully In plfan?mg tbe as a result are willing to assume
adhered tn in^h? criteria to be greater risks as measured in terms
ofah»nVc
■ ad™lnlsjratl0fn
of the credit ratings on debt oblifolio
rnunicipal bond port- gations acceptable to them. This
has the tendency of offsetting in
ins the relatifa°n- Teac5ed re§a^d" part market price declines occurof
rlsk.s ?f ownersh'P ring due to rising interest rates
bonds isH
rated mumc.1Pal which generally accompany exof vie d cht^lPOn a c°r?.pa"son
panding business activity. The
i„

V

Chappelle Opens Branch

nd jnstitutj?n

alike

The Kenny Foun¬

September 30.

dation provides treatment and re¬
habilitation
for
crippling
disa¬

of non-payprincipal when

rates bear upon the market price
of these obligations while they are

qtandin£J

figure of $542,000. The appeal will
be
held
from
August
through

With L. A. Huey Co.

C. Clendenin, "Price-Level

and

Street,

fornia Company.

be

Malloy
1 John

over-all Eastern Area

the

toward

Calif.—Jo¬

FRANCISCO,

Montgomery

given to interest rate risk. How¬
ever,
if this is not the case an
attempt must be made to mini¬
mize
such risks
in addition
to

ations

New York
is $250,000

Industry for Greater
in the Kenny appeal

seph T. Wootton has been added
to
the staff
of
York
Co.,
235

so,

need

f

Pantasote

(Special to The Financial Chronicle)

SAN

sale

his investments until they mature,

that

Building.

Bank

considera¬

likelihood of forced

during periods of depressed mar¬
ket conditions. If an investor feels
confident he will be able to retain
and

Savings

o

—

13

York Adds to Staff

owing to interest rate move¬
take

Y.

Aug.

President

Company. Goal of Commerce and

D.

Inc.,

must

Whitehead

H.

the

Of J. S. Barr & Go.
on

A.

Wyman, ViceLouis

under the

Burger to Be V.-P.

.

the

Cha irman

Charles

branch

ITHACA,, N.

by

General

Chappelle

practice.

Burger

made

was

likelihood

f interest or

"

'?•'°t!ler less.hiSh.1.y
-1SSUeS (1"
te^mS °£ •Cred-lt
fnfpr?\ in.resp°nse \° a.rise in
S e tu
he ^U1^kly.
must !f n/h
'f l
£

this

re-examine

to

An¬

nouncement

of issues rated

cage

due is, practically speaking,
and

advised

rates.

tion

substantially
of "interest

ah

Funds

Mutual

Division.

pol¬

part, the impact of higher interest

ments

rated municipal

with AAA

feltr<t<y be

was

Warren W.
will become
Vice-President of J. S. Barr & Co.,

tions

percentage range of
]d fluctL,ation on BAA as corn-

>

well

Any appraisal of the seriousness
of municipal bond price fluctua¬

the

While

what

icy byt purchasing only
issues
carrying--top ratings might be

have

proving business usually shows up
promptly in improved
earnings
coverage of interest and sinking
fund requirements. This enhanced
credit standing appears
to have
directly influenced market price
and served to offset, at least in

Fluctuation

Average Yield

Credit

to

hered

lessen

to

of pro¬

ultra-conservative investment

worked
the price'
fluctuations of lower grade debt
obligations. Here, of course, im¬
activity

effectively

Average Yield
.

movements of in¬
was
presented. It
that swings in

demonstrated

business

per cent regardless of
credit rating they bore. When

one-half

Westcott

Richard

yield change on all bonds
in the preparation of the

averages was

mimmmW&mmm

for
first

account

what

market

^ie

to

exist

sons

May issue of the "Journal
a
detailed study of

used

^

credit

lower

analysis indicates that the

The

measure

against market price de¬
preciation of municipal
invest¬
ment
holdings can be obtained
through increased commitments in
issues carrying lower credit rat¬
ings, then banks which have ad¬

Finance"1

average

periqnced,- .by
issues
of

will, direct the

un¬

tection

Corporate Bond Experience
of

small

a

even

and

1959

for

liquidation of bond
holdings at substantial

extremely

were

sues

appeals,
has
joined again

anticipated

Moody's muniqi- December 1958, the percentage
portfolio
the 30s are
yield series for point yield change between the
losses. The establishment of valu¬
the vears 1951 through 1958 consuccessive high and low yield however, which were, for the most ation reserves out of a sometimes
part, responsible for the severely
firms
that
the
range
of yield points reached during the period
limited
bank
capitalization
in
depressed bond markets existing
fluctuations,
by each of the four rating classes
order to offset price depreciation
at that time (and in spite of the
tnH nnntrariof bonds was computed. The averfact
that
interest and principal in bond holdings has also become
wise the dolage range of yield fluctuation was losses on state and municipal is¬ a far from occasional requirement.
study of the

A

nal

dation

borrowing needs of their custom¬

would be
declining interest
panic liquidations of
not likely to recur,

The

Foun¬
fund

Kenny

banks have found that to meet the

little helped by
rates.

Elizabeth

Periods
of
expanding
business and personal credit de¬
mands
will
generally bring in
their wake
rising interest rates
and, of course, declining bond
prices.
In
recent years
many

issues

of sev¬
Sister

eral

ratings.

of lower credit standing

York

New

veteran

Exchange,

folios

investor

of

Stock

the

of

&

advisors-

investment

.

members

and

Appeal

Whitehead, of Nye

H.

Whitehead,

price

recognized, of course, that
in the event of serious depression
accompanied

should pay close at¬
the problems of market

tention to

It is

pals offer less of a liquidating loss than do top rated issues
during bond price depreciation periods and, thus, should be
included in the bond portfolio.

Louis

in particular

swing of price changes resulting
from changing interest rates.

credit standing munici¬

municipal specialist shows that lower

In Sister Kenny

Policy

It is felt that commercial banks

higher rated issues.
The fact that prime quality issues
are,
so
to speak,
"above" the
dangers of non-payment of inter¬
est
and
principal removes the
influence of changing investor ac¬
ceptance of such obligations and
thus leaves them subject to the full

111.

Chicago,

Bank

Commercial

the part of municipal

on

Whitehead Heads Div,

investment

in other than

RICHARD A. WESTCOTT

By

and

buyers and a reluctance to invest

Department, The First National Bank of Chicago

Bond

conservative

more

the danger of,vipterest
principal non-payment.

limiting

rise in yields)

13

Rhoades & Co.

National
.

14

The Commercial and Financial Chronicle

(526)

s' "StU

Railroad Securities

.

.

Thursday, August 6,1959

.

Public utility Securities
BY

OWEN

ELY

PHILADELPHIA, Pa.—The ap¬
pointment of Harold A. Hobson,
Jr.

Denver & Rio Grande Western

midwestern representative

a

as

for Delaware Fund and Delaware
Income

Earnings
Grande

of

Denver

Western

Rio

to

while it is conducted at

ex¬

&

continue

a

direct

cost

basis,

loss

a

on

has

this

deficit
pand.
The road has been able to from operations amounted to only
attract new industries to its serv¬
$1,018,000 or .about 4.6% of direct
ice area and this has broadened its pre-tax freight net
railway oper¬
traffic base. Currently, it is being ating income.
hurt by the steel strike since it
Revenues
in
the
first
five
steel

serves

mills

and

mines

coal

Which supply the mills.
in

The Rio Grande operate mainly
Colorado and Utah and serves

the important middle link
vital transcontinental route.
as

on

a

Ap¬
proximately
one-third
of
total
freight tonnage is bridge-line, nei¬
ther

originating

terminating

nor

months

of this

costs

dent

-

was

however, 13.7% and
equal to 55 cents a

up,

ings

Mr.

and

the

the Southern Pacific and

Western

Pacific

terminal

and

the

at

Western

with

Quincy;

Chicago, Burlington
Chicago, Rock Island

Pacific,

and

Missouri

Pacific

&
at

carrier's

trend

revenue

in

recent years

has been better than
the average of the
industry. Reve¬
in

nues

1958

1947-1949
with

107%

whole.

120%

were

average

for

the

Large

of

the

compared

as

compared

as

$1.90

with

a
a

$1.65

In

Rio

Grande

share

continues

in

1951
to 1953 but, despite the loss of this

000

traffic, revenues
high in 1957 and

new

a

continuation of

this uptrend is anticipated.
:

The

railroad's

is

well

materials

coal,

flaxing

stone

It is believed
that steel producers will continue
to move closer to consuming dis¬

It

members

of

steel production and related prod¬

York

offices

the

has

at

51

City.

Dwight
system's

good showing in
indicates the advan¬

anced

bridge line with

flow

of

ments.

In

traffic

of

percentage

loaded

addition,

under

good

heavy

capital

property

high

a

car

with

are

past

expenditures

Another

for

already
factor

in

F.

Dawkins,
John

Co.,

San

Street,

Francisco

for

except

and

General

south San

San

The

Lehman Brothers

members

here

years

Albert

F.

H.

Sullivan

creasing

Faber,

with

the

analysts

of

is

in

he

announced

was

ing

Co. and previously

as

Texaco, Inc.,
gineer.

P.

Johnson is office

stitute
and

ager,
and

the

4%

of

gross

revenues,

and

neither

an

The

of

lications-

Emeroy Y. Morse, consultant, havior,

:\

offer to sell

offering is

a

solicitation

only

by

the

and

-

,—Percent—\

the

16

18

31.7

4.8

38

22

American In¬

In

of

the

Equity__.

About

$82.8

40%

of

the

preferred

stock

is

$22.0 100%

Offering Circular.

•

•

of

100%

convertible.

earlier

years the percentage earned on invested
capital
inadequate: only 4.2% was earned in 1948 and 4.8% in 1952.
following year a sharp increase to 6.1% occurred, but in

the

later years the
percentages ranged between 5.1 and 5.8%. However,
recent increases may raise the rate

Institute, Mr.

author

Stock

$6 million first

In

moderately. The Public Utilities

-

Commission

in

1958

allowed an increase of
$148,000 in the San
Water division. The telephone division obtained
about $1 million additional
revenue from an increase in message

pub¬

Gabriel

on
Hydrocarbon
Be¬
Reservoir
Engineering,

of

4.0

mortgage bonds, plus internal cash.

en¬

Mining, Metallurgical
Engineers and the

is

60%

*13.3

Stock

Construction expenditures for 1958 totaled
$11.4 million and
about $12 million is
projected for 1959, of which $10.5 million will
be for the telephone division and
$1.5 million for the water divi¬
sions. The 1958 construction
program was financed by the sale of
200,000 shares of convertible preferred stock and

was

Economics

offer to buy any

an

"

'194!)

Oil Indus-

Valley

unit rate
schedules, effective earlier in the year. Another telephone
increase of $750,000 a year became
effective in February 1959 and

■

was
later upheld by the U.
S. Supreme
appeals by Los Angeles and Long Beach.

of

improved

•

•

l!)r>8

Total

with

was

As

a

result of

rejected

which

increase in the number of system telephones
gain in the number of water customers of 5%,
the rate increases described
above, revenues in¬

and

with

Court

an

a

creased 22% last
year.

these securities.

•

I. NEW ISSUE

California Water &
Telephone has been quoted recently around
J'27 in the over-counter market,
yielding about 4.4% based on the
$1.20 dividend rate.
Dividends
have^been
paid continuously
/since 1936, the present
payout ratio being about 67% 1 For the 12
months ended March
31, share earnings were $1.80, an increase of
31% over the previous 12
months, and the company has estimated
earnings for the calendar year 1959 at
$1.75 to $1.80 on an average
of 1,658,000 shares.
Using the figure of $1.80, the current priceearnings ratio would be 15, a
comparatively modest figure as comv: pared with utility stocks generally.
,

July 30, 1959

f

100,000 Shares

LIE CO,
(Par Value $0.10
I

INC.

i'

,:

FHL Banks Sell Notes

Share)

per

■

■

Public

'

..

offering of $247,000,000
amount of Federal Home
Banks 4.65% consolidated

principal
Loan

Price; $3.00
per

Copies of the Offering Circular
s

"

policy of in¬

have

46%

together
nor

made

a

ratios

1»4!)

of about 9%
is

revenues

$13.2

*

;

This announcement

Capitalization

indicated below:

Common

trading department.

only

for

-

rapid growth, with

Preferred

Petroleum

Glanville

Robert H. Smith,
manager of

account

very

$37.8

that

petroleum

a

American Petroleum

man¬

Rio Grande's favor is the fact that

as

A member of the

Rob¬

passenger

revenues

of public

t!)r>8

Division Reservoir Engin¬
Humble Oil and Refin¬

firm

charge of institutional sales;
L.

>

enjoyed

,—Millions—,

with

Hague. Richard H. Marshall

Harold

have

Robert

are

area.

equity, ratio.

as

William St.,"

eer

Colin, Robert W. Farrell and
ert F.

1

C.
.

Associated
senior

B.

Jr.,

John

the

since 1949

James W. Glanville, petroleum en¬
gineer
has
become
associated
with the firm. From 1948 to 1959

are

and

Diego Bay

company has

have been greater had not the
company followed

since

J)t the New York Stock

Exchange,

New

Richard

Monterey

increasing from $4 million in 1948 to around $22 million
currently;
during the same period net income increased from $530,000 to
$3,420,000. However, share earnings gained at a slower
pace,
increasing from $1.32 in 1948 to $1.79 in 1958. The increase would

Lehman Brothers

Stock

Partners

Faulkner,

or

does not follow a policy of "selling out" to
other local agencies. The 1958 report to stock¬

the

James W. Glanville Joins

Sullivan,

Street.

company

Long-Term Debt

been formed with
Broad

properties are now
Corp. has working control of the
of the common stock, C. H.

service in the U. S. Marine Corps
during World War II.

Opens

York

New

another
in 1935;

possibility that condemnation proceedings may some day
In June the San Diego City Council ordered
prepa¬
ration steps for acquisition of the
company's water facilities in

investment

four

under

be instituted."

firm. He has been engaged in the

business

1926

ownership and operation of the water systems serving the area.
have advised the District, as we have other
public agencies,
that have considered requisition of certain of our water
properties,
that we are an operating utility and our
properties are not for sale.
However, we must recognize the public's right of eminent domain

Kavanaugh formerly was
president of Eastland, Douglass &

securities

in

We

Mr.

require¬

Dawkins.

move¬

expenses

control

rehabilitation

accomplished.

bal¬

a

and

California

incorporated

"A Municipal Water District has been formed on the
Peninsula for the purpose of investigating the
feasibility

Francisco.

pur¬

ucts.

a

his

makes

Kavanaugh

441

at

$1,300,000.

Faulkner, Dawkins &

Exchange,

tage of

also

pointed manager of First Califor¬
nia Company's ground floor office

estimated

is

Sullivan

tricts and the road stands to bene¬
fit further from the
expansion of

This

he

was

Western Utilities

municipalities

SAN FRANCISCO, Calif.—Pat¬
T. Kavanaugh has been ap¬

.

company

holders stated:

rick

Faulkner, Dawkins &

production of steel.

recent years

post, he

and

for the

necessary

where

1927,

sup¬

of

other

curtailed.

ments by about

situated with respect to raw mate¬
rials which could bring about fur¬
ther industrialization.
It has

plies

1958, with equipment

turities and sinking fund

territory

Delaware

Bay

the

companies.

With First California

that depreciation charges this year
will exceed equipment trust ma¬

reached
a

their

in

of Los Angeles and Pasadena are
a population of 225,000 in the
to a part of Los Angeles County and to
These systems are not interconnected.

supplied to

company through ownership of 11%
Loveland being President of both
The

new

P. T.

pected to approximate the $6,000,of

Weeks

of

to

$29,890,000 and cur¬
rent
liabilities
were
$21,278,000.
Net working capital on that date
aggregated
$25,487,000,
up
sub¬
stantially from the $19,441,000 re¬

chases

&

firm

a

industry as a ported on the like date last year.
during Capital' outlays this year are ex¬

ings during the period from

banking

continue to work out of that

city

shipments

the Korean conflict lifted carload-

Hobson, Jr.

home.

strong
financial
condition.
On
May 31 last, cash and cash items
amounted

this

Diego

While

owned in fee

investment

will

share

is

area.

San

~

Chicago office.

reported for 1958.

&

the East.
The

earnings of around

Portions

Water

name, a large number of utility companies were acquired
these were subsequently dissolved so that

i
Harold A.

ca¬

Hornblower

decade.

area,

;

with

pacity
the

past

served.

the

in

sales

the

the

Monterey Peninsula

analytical

an

com¬

square

served

also

formerly

associated

road's own line and with a mon share as
compared with 49
fairly
long average
haul,
this cents a share in the corresponding
freight traffic accounts for a large 1958 months. It is estimated that
volume of total freight revenues. if the steel strike is not
prolonged
Connections are made with both that the road this year could show
on

in
:

Hobson

was

earn¬

were

s-

or¬

miles and

a population of over 225,000.
The company
fast-growing Palm Springs area since the early
1930s; the number of telephones in the city has more than tripled

has

t;

ganization.

income

net

d i

tributing

transportation

Final

rates.

2,400

utors, Inc„ the
Fund s'. na¬

higher, due mainly to higher

wage

by

Distrib¬

tional

Water &

Telephone, with annual revenues of $22
million, supplies water and telephone service in various areas of
southern California, telephone comprising about 76% of
gross and
water 24%.. Telephone service is furnished to
portions of Los
Angeles, San Bernardino and Riverside Counties, including about

Dela¬

of

ware

year

and

California

Linton

W.

Telephone Company

an¬

Nelson, Presi¬

gained 10.3%
over those of the like 1958 period.
Operating
expenses
during
the
same months rose 8.2%, with both
maintenance

California Water &

Fund

been

nounced

such other dealers

J. A. Winston &




as

may

may

be obtained

Share

from

the

notes dated
,

in

this

and

from

through^ Everett . Smith,
fiscal
agent of the Banks, and a nation- wide
group of
security dealers.'

p\rt

State.

"used

Co., Inc.

was

made on Aug. 4
by the Federal Home Loan Board

undersigned

lawfully ■ offer these securities

Aug. 17, 1959 and due

..April 15, 1960

Netherlands Securities
Company, Inc.

to

of

of

the

and

on

will

be

of

notes

the

Banks will
480,000. ■

amount to.; $1,317,*
4
•'>"'
,

•••

,

'

tf

Two With Morgan

f.

^ -

(speciai io the financial chronicle)

ice

LO? ANGELES.

$222,000,000

used

provide additional funds to

Mil*ar and Lawrence K.

notes

Aug. 17. The balance

proceeds

retirement

maturing on Aug. 17, outstanding
indebtedness of the Home Loar

tol^roeeeds

redeem

maturing

M^Z^eet demand £o'
Upon completion of the financ-

to

mem-

ber institutions of the
Home Loan

are

&

affiliated

now

with

Morgan

Co., 634 South Spring St. mem-

bers

of

the

Exchange.

Pacific

Coast

Stock

Number 5870

190

Volume

(527)

The Commercial and Financial Chronicle

...

The Court is building up a

Common Market's Significance
To the American Economy

of

con-

docket

parliamentary
in

vested
time

trade will be

more

to ECM's repercussions

V

the peoples of

the liberalization trend will continue;

(2)

nations;

(3) beckoning opportunities, and not the danger of staying
been the prime motivation for investment-flow there
which will be exceeded in a second wave two to four years
out, has

members

the

they

as

calls for

Mr. Ball

leadership to prevent divisive

our

"Outer

details within

GATT the implementation

the

cont

r

I

"•

t e

u

The

agri-

common

a

cultural policy pnnd

studies of this

undertake a common
commercial
policy—according to
a precise timetable and with spe-

Committee by

put

to

trying
Market

"in

and

W.

Ball

weight
appraisal of the benefits and

dangers of the Common Market to
the United States.

a

common

Market

spired

the Com-

serves

both

constitu-

a

as

code of

a

by

laws, were indesire
to
make

the

progress toward

\

the

J

1

'

_

''

T J.

*

__

political integra-

ships to workers from the temporary disruptions implicit in
liberalization.
It
provides

an

trade

economic

rri?
lhe

a

no .Common

Nations

have

+

u

Treaty
have

of

Rome

entered

if it had

of

created

the

Common

Market

The

political

Treatv
treaty

nf

,

transition
will

e

all

oth™r

—

.

pro~

nnrfr^^tes, over a
? t0+ 15JeuSl

minat. nnt

movement
bor and

barriers
of

to

goods

capital

The free
-"!

services

throughout

j^conomic Community.
reaty
recognizes

that

But

the

the

complete

with
integra-

a

substantial measure of
ll°n, including the develooment

common economic

'

For example,
the

member

na-

agree

"

mnnJt^wards1.a common
mutual S P.ollcy, and to

member

balance
ance

-----*--

oT
of navmS

(9\

^iT° tal^e
tCB,asi
D

"

there

that

Most

has

been

America

in

concern

the American

a

group

while,
diffident

esoteric

as

I

about
area

have

said,

intruding

I

am

in

the

of economic predic-

tion, i would like to put forward

r a statement by Mr. Ball to
nomic Committee, Washing-

r

c*




^

a

as

a

y/hole is dependent
degree on world

high

ve

while

the

tariff

will

tariff

faced

.

ex-

common

be

higher

by

than

producers

trade.

Since the War quantitative

within the member countries, in r^strietrbn^haVe bien Inorelforits net effect it will be no higher mjdable impediments to trade
than the tariffs which American ^au tariffs.
producers now face in< selling in
Just as in tjie case of tariffs;
the Community countries. The the commitments under GATT

dividual countries comprising that
customs union.

govern the regime of quotas
that may be applied against outi
side trade; and the GATT rules
cau for the limited use of such
quotas, principally in case of
balance of payments difficulties,
There have recently been important moves toward the liberal-

Second, even this tariff level *
cannot be taken as fixed. The ex-

^

Continued

on

This announcement is

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

neither

page

to

many

shared

by

of

power

1,000,000 Shares

the

the Community is

government

Commission

a

of this Stoch*

NEW ISSUE

Federal Europe.

executive

to buy any

powers,

VOSS OIL COMPANY

and

Class A Comiifoii Stock
(No Par Value)

is composed of "Europeans"—men

appointed for fixed terms who are
required by the Treaty to act for
the Community as a whole and

to seek ?.r accept instructions
from anv natlonalMinisters, which
state'
Tne Council of
must

concur

sions

of the

Price SI.00 per

Share

in many of the deci¬

Commission, consists

of ministers representing the govbrnments of the member states.

During the early Part of the
transition period the Council of

The

Prospectus

may

be obtained only from such of the undersigned
as may lawfully offer the securities in this Stale.

and other Underwriters

Ministers may act only by unanimity; as the transition period
it may make many of
decisions by majority vote.

The judicial power is vested in
Ahe eXent a Court, which serves as the
encounters supreme judicial body with final

yments difficulties;
measures to equal-

*2.!^

munity

would expect to see the progress^ve
eniargement and
ultimate
elimination of quantitative " reprogressively diminishing in- strictions with respect to external
^

the

greatest

- "

important of all, the Com-

Market will be compelled ta>
"
J *

•

conclusion.

tnis

ternal

the

of

that

mon

.

,

progresses,

t

anri

Provide

ton '

of

nolfcies

the

Communitv

(1) Tn

fiscal

much

I have observed them,

as

gome

"la- ?0t

ductioncan bea'ch/eTed^nly

of

represent

a

jurisdiction

controversies

to

decide

arising

all

under

legal

sl0ns binding not only on entereven on

member states.

P.W. Brooks & Co.

Hill, Darlington & Co.

Sterling, Grace & Co,

Incorporated

Coburn & Middlebrook
Incorporated

the

Treaty. It may hand down deciprises but

in

thrust of

J?® in
ins^nce^concen- trade—to a far greater degree, as
duc<frs. In some mstances cancen a,-.matter of fact than is the
tra^pn on this aspect of he
Common Market hasi. led to madequate and inaccurate analysis.
My fourth reason for minimijThere are several reasons for in2 the trade disadvantage ta
American
producers
is
that I

The Commission, which has the

of

p

of

tariff.

over the alleged disadvantage

day-to-day responsibility for the
administration of the Community,
)c

vjsinnc

.

the

becomes apone Under its proexamines the
Rome.

parent

on

Council of Ministers.

character
AT—"vv"

basic

most

is

institutions

the

oversee

the
""**

Tvr^.

fnmmAn

selling
external

believe

I
too

Europeans the evolutionary instiThe

Political Content of the

wons

Community

from
to

" merely a free trade area or tutions of
union.

ustoms

the

But the essential political character

hopefully

Political content,

.

Community

the

ade Pobcies if the iar tripartite division of
contained no funda-

,

had

that

convinced

am

0f
the
officials who have the
insuperable ob-; "responsibility for the administra—^
goods over the tion of the Common Market,

The Extent of Trade Disadvantage

ternal

industrial and trading nations of

stitutions, which reflect the famil-

the

never

reaty

a

of

into

would

common

First,

the world to commit themselves
to an undertaking of such dimensions must necessarily have re-

Those

revolutionary readjustment

in

such a

in

stacle

an

percussions'outside the Community Common Market complies with
itself. Certainly it will have con- the provisions of GATT, which
°ne can say> in other words, sequences for American business requires that in establishing a
that the Treaty contemplates not and the American economy—and, customs union the external tariff
only a pooling of resources but a as I shall point out later, for cannot be more restrictive in
pooling of policies for the Six American foreign policy as well, effect than the tariffs of the in-

Market, evident

which

n

inexorable logic,

For

development of common policies and to
administer the Treaty. Those in-

joined

t

categorically that
political end there

say

i

Six

with

ritories.

Institutions

this

o-

market of

11T ifi

r»

t

~

to

means

political end.

Without

vast

a

Economy

policies cover a wide spectrum of
governmental decision,

the

was

can

of

Repercussions

also

Nations acting as a unit.

them

,

integration

I

policy

outside the Common Market will

Com-

„

m

federation.

For

trade

the Common Market must inevitably be liberal. The commitment
natl01?al to a liberal policy is made ex-

•

be faced

creation

1

tion—ultimately toward European

One

Energy

The drafters of the Treaty of
Rome approached political integration through economic means.
Being pragmatic men, they felt
that by integrating the economies

wish first to empha-

Rome, which

tion and

Third,

that when the

is

the the transition period, producers vieWs,

and

Community

Atomic

mission.

for the permanent linkage to the
size is that the Common Market
Common Market of those overis political in purpose.
purposed"its" eco- seas territories especially tied to
Its eco¬
nomic
objectives, while impor- one or another of the member
impor—
tant, are nonetheless secondary, states, unless those territories deThe gifted and dedicated men who
cide otherwise, and establishes a
were
responsible for the Treaty Development Fund for those terThe point I

mon

steel

Treaty establishes a Euro- 170 million people — about the
Investment Bank to supply same as the population of the
capital for modernization,
United States - they could not
provement of production, and de- only
give momentum to drive
velopment of the retarded areas. toward federation but create convvrh rth
a!
1 av» ff
Tt nmxHHo"i» Nh'tinnq
in
which solutions alone
of the Community
It piovides a
ditions in wnicn solutions aiong
PWW.1
imc»c
wpr,
nnmhpIIpH
hv
Social Fund to relieve the hardFederal lines were compelled by
_

George

f-00 mUch.

Eco- internal^ tariff-by which
Community but also the two the taiiff applicable to the move

the^m-

than economic

of

example,

The argument

Assembly

the

The

that should be

an

and

pean

consid¬

given

goals—including

rest of the world.

erations other

in

for

disadvantage in exporting to the

national

by

not

has,

a

political per¬
spective and
by suggesting
some

To

cific

Common

the

become mining the character of the ex~
busi- ternal
tariff
of
the
Commoa
ness circles, to assume that Ameri- Market.
can industry will be at a hopeless
j cannot emphasize this point
"It

Common Market.

Court

European

tively to t h e

(5)

and

clauses— in the

fashionable, particularly in

that in the Asseating is by party

the

escape

common

--

adopt

vote of
resigna-

serve £ot onlY the European

monopolies;
To

the

delegations.

regulations governing cartels

(4)

the

"
Government to employ the machinery of
trade
agreement
negotiations
The willingness of our

*s toe temptation to accept the ob- points and

significant

groupings
:

and

effec¬

most

by

and

require

can

sembly

and

can

i b

To establish

legislation,
reviews the work
pass

a

equal work by men and
(3)

approaching

In

own.

Common Market.

pay for °ther
9°^-muUni ifS
e £
° g°°+v?- fj0?
women;-been established bythe six mem- boundaries within the Community piicit by the Treaty. This commitrules ber nations —the European Coal —is reduced to zero by the end of ment is happily in accord with the,

ply the principle of equal

Market to

P
European Common
America. I

believe

It.; is

conse¬

increasingly high level and to ap-

major burden of discussing
economic significance of the

their

tion of the Commission as a body,

to the economists ;i*e the conditions of labor at an

shall leave

I
the

developments tend to invite
patterns of reaction that in a
short time acquire a validity of

the member states,

Commission

censure

multilateral system.

a

tariff

for

negotiations under GATT will begjn jn the Fall of 1960. These
negotiations, as you know, will be

servations of the first men who i^ng run perhaps, the extent to
happened to have addressed them- which the Congress permits it ta
selves to this question.
do s0—will be critical in deter-

regularly

~

in Europe, and proposes U. S., Canadian, ECM and
Seven" cooperative measures which would leave to

quences

called in Europe

proposal

it
of

to

power

by-passed by investment growth.

are

,

now

Dillon

the

Common Market and in assessing without hobbling itself by an units significance for America, there due
preoccupation
with
peril

hurt

may

tion. What is

new

The

the

Seven" opposition to ECM

hence; and (4) "Outer

terna! tariff is subject to negotia-

Assembly has many of the
attributes of a European parliament. While it does not have the
.

vidual

The

members.

own

however, has been
entrusted by the Treaty with the
task of developing a plan for the
direct election of the Assembly by

Moreover, he predicts: (1) end of 1962
liberal than when the countries were indi¬

economy.

our

on

national states from

their

Commission,

significance to rebut charge that U. S. industry's exports will
as

are

among

the

members of the Aselected by the parlia-

of the

ments

random

officials both in the United
States and the Common Market undertaken under the authoritynations, and from these discus- granted the President by the Trade
sions I have formed certain im- Agreements Extension Act of
Pi'essions which may be of use to 1953, which was designed quit©
the Joint Economic Committee.
explicitly as a mechanism for reIt is a truism, I suppose, that ducing the external tariff of the

is

For

on

observations,

During the past year and a half,
I have talked'with literally hundreds of businessmen and govern-

its

on

power

Assembly.

an

being

sembly

Experienced in recent European developments, Mr. Ball offers
his own private views on the European Common Market's

has

now

unsystematic

and

60 pending cases.

over

The

Friendly & Ball, Washington, D. C.

suffer and other contentions made

It

suggestions based

some

of European juris-

kind

a

prudence.

By GEORGE W. BALL*

Gottlieb,

Cleary,

body

will

law which

decisional

stitute

15

August 5, 1959

Granger & Company

16

1€

The Commercial and Financial Chronicle

(528)

Continued from page

the

15

ward

A

as

known and its larger consequences

defensive

a

re¬

Market.

Common

the

to

Stockholm arrangement

put for¬

been

second

point of consequence,
unrelated to the first, is that

not

To the American

except

action

Common Market's Significance

have

never

proposal

Area

Trade

Free

would

the Free Trade Area did not even

Economy

meet

the

test

of

union

customs

a

are

in part a

is

the

to

trends continue I
see

such

more

sure we

am

shall

in the

near

moves

future
On the

basis

of

tions, I think it

these

observa-

While the figure for both
in 1950 stood at approximately 17%, by 1957 the Com-

pace.

areas

muni%Jper^nt?p+ h?driTsTe"

withqTftJ?vLrT^nprpa^prf
^ad,ninf tS

be said
some confidence that through the
first stage of the transition of the
Common

can

which

Market

in

ends

^a*es

1962, the commercial policy of the

*° Europe

Common Market will be

the

Common

Market

into

came

existence

'long-range

While

predictions

are
hazardous, I see every reason
why this trend toward liberaliza-

tion

should continue into

ture.

If,

the

fu-

may be
economies of the Six

expected, the
are strengthened
by the Common Market,
their ability to undertake further
as

liberalization

will

measures

be

equally strengthened. At the same
time, pressures for protectionism
should

diminish;

European

as

firms reorganize their production
to respond to the intensified com-

free

ttvh t

Jh

investment

businessmen

see

would

Each

its

tailor

to

common

a

It

This

failure

to

among

require a com¬
was important.

administrative
elaborate

been

in

Western Europe not only an opportunity to share the fruits of an
expanding economy but also the

chance to play a part in the exP*01*3^011 of a SJea^ n^w mass

™arket a kind of new economic
fr°ntier being created by the
Community. I am convinced from
flrst-hand acquaintance with a

substantial number of s p e c 1 f 1 c
cases that this response to a new
ecorj°mlc challenge has been the
most compelling consideration in
Persaa^ng c o r p o r ate manage™er}JrS f° seeS Produ£tion sources
VA Westcrn Europe. Them reac-

Jion to the Common Market has

since

problems

goods
entering the common Mar¬
by
transshipment
through

from

prevent

to

necessary

countries

to

resort

import quotas for balance of
ments

reasons.

within

the

to

pay-

The internal forces

Common

Market

in-

ducing the improvement of fiscal
and monetary policies support
this view.
For example, certain
of the recent fiscal and

monetary
reforms of Community
governments directed at improving their
foreign exchange position have
been inspired by the need to face
the

realities of the Common

new

Market.
TT

11

j

1

T

States

.

,

Investment

.

in

.,

the

Common Market

unattractive to

with

has been

the

American

American

Common

Market

acceleration of direct

an

investment

in

the

firms

Community by
This

capital

export

of
know-how

and

frequently

is

explained on the
ground that American companies
are

capital will continue to

to

the

seeking

sources

of production

Community, but I think it

probable
wave

four

wholly inaccurate, explanation

of the reason why American businesses

invading the Commu-

are

nity. Even without the Common
Market, some trend in this direction

would

this

likely have occurred

today
iish

one.

are

The

Common
the

Market

dynamism

did

not

which

has

been

gaining force in
Europe,
particularly over the past 10 years.
is

in

a

sense

an

expression of

that

dynamism.
But
it
should
greatly amplify and intensify it
During the present decade industrial

production in the Comhas been driven by its
own
internal engine of growth.
This is apparent if one
compares

munity

tion

indices
in

the

of

industrial

Common

produc-

Market and

United

States during the period 1950-1958.
While American production
has
been marked by two
recessions
and

an

only

moderate

total

in-

crease, production in the Common
Market
has
risen
sharply and
steadily during this entire period,
At least a partial

explanation

•

3n

of

far

than

the

now,

dimensions

Many American firms

content merely to estab-

beachheads

of

production

in

the

Community. When they have
acquired experience, when they
have gained confidence
pro—

vided,

I think it probable, that
made
money
in the
process—they will be prepared to
pu^ much larger amounts of capi-

^hey

as

have

int°

the

many

exPansion

Of

their

Will the

Common

!tls fact
Phenomenon
the

Gross

Let me tur" for

can be found

that the
percentage of

National

Product

devoted




a

Common Market to its broader
wRSfq,lie^»re^A01 ri!}e unity of the
Western World. The fear is fre-

?ue?£y
77 i1110?? °
^.e OEEC capitals than
—

that the

towal'd

the

creation

of

wealth

the Free Trade Area.

and

The

mon

in

companies. There is

that
been

had

the

Free

no

Trade

accepted by the Com¬

Market countries in the form

which

United

it

Free

have

would

cial

proposal. It
political content;

had

almost

no

it provided for
only the most rudimentary institutional arrangements. As I said

previously, the Community would
not have come into being except
for the political objectives which
inspired it; it is equally true that

We

from

reasons

nation

one

feeling"

of

groups

nations

could settle

we

I

many

policy

disturbing

us

leaving to GATT, their implemen¬
tation

in

lateral

the

context

of

multil

a

system.

In

making this proposal I would
wish to be
understood, by any

not

stretch of the

gesting

imagination,

as sug¬

concert of the industrial¬
against the less de¬
veloped areas. Rather I would see
ized

a

nations

at

mechanism

a

as

tribution

of

whereby

nations

extension

an

can

and

their

better

dis¬

responsibilities

to increase the standard
and

the

arrive

of

living

over the

gone

the

to

United

can

a

intense degree.

a more

that the difference

say

our

Common

world.

attitude

Market

toward
that

and

the

the

of

United

the

King¬

have

national interest while they
not. But we cannot be too

nations

pean

faced

are

not to participate in
European unification

have

we

selves

with

free

to

access

Area.

While

the

it

is

Free

Trade

that

true

for

companies this would have

many

been

only a marginal considera¬
tion, nonetheless, all other things
being equal, I am certain that in
many cases it would have tipped
the balance in the choice of loca¬

tion.

-

As
Free

soon

the

as

Trade Area

failure

of

the

negotiations be¬

probable, more and more
companies elected to

came

American

concentrate

investment

in

the

Community. This trend is becom¬
ing daily more evident. It is the
of

increasing

concern

for

which

find

European countries
themselves bypassed.

such

countries

commercial

selling

to

than

is

impact

disadvantage

the

consumers

the

Common

in

Market

prospective

rather

immediate,

investment

but the loss of
capital appears as a

real and

competitors growing progressively
stronger
with
capital infusions
from

the

their

pound
turers

United

in

States.

concern,

Manchester

pool

are

sales

To

com¬

manufac¬
and

Liver¬

agents

receiving letters from
and distributors on

These

the

are

considerations

which

have, I believe, proved the
compelling incentive for the
recent meeting at Stockholm and

most

the

decision

of

seven

OEEC

na¬

tions outside the Common Market
to

form

a

free

themselves.

trade

These

area

among

countries

are

Britain, Austria, Switzerland, the
three Scandinavian countries, and
Portugal. The precise form of the

and

postwar

policies that were for
developed during a

period

faced

are

ferent set

when

with

of

occupations.

rehabilita¬

Today
wholly dif¬

a

conditions

and

pre¬

An approach respon¬

might well be welcomed.

Crowell-Gollier

a

always

an

while

considered

geographically

Need

for

our¬

excluded

Up

and

American

an

to

this

point,

States

have

of

kind

of

in

we

the

watched

benevolent

Uncle

a

Sam,
but
sug¬

gest the precise course which this
evolution might take. I think that
on
balance this has been a wise
course
of
action.

However,

we

may^well have reached the point
where a new American initiative
is

called

at

preserving and encouraging the
towards
political
and
integration which has

for—an initiative

aimed

progress

economic

far been

achieved, while avoid¬
ing the divisive consequences that

could affect

a

range of considera¬

tions much broader than
cial

stock

commer¬

policy.

The

be

we

should propose

systematic

arrangement for
between the United

cooperation

States, Canada, the Common Mar¬
ket (speaking as a new
entity in
the Western World), the United
Kingdom and other members of
the

Securities
Corp.,
44,342
Claire K. Dixon, 38,824
Mrs. Giles Whiting and
Louis E. McFadden, 10,000 shares

shares;
shares;

each.
The

Together

these

constitute)

World,

of

areas

and

there

the
the

are

a

number

of problems
which this
of nations could profitably

discuss

over

problems
but

with

from

continued period—

a

economic

Community,
he

references

in

character

was

made
to

the

several

interest

public
of

the

Community in providing aid
underdeveloped countries.

group
on

the

problem

markets

modities.

sales and

five

of

$2,042,724 for the first

months

pared

broadcasting

$28,884,461.
figures indicate net

were

Unaudited

income

of

this

com¬

year,

with $1,491,378 a year ago.

Lester, Ryons Adds
(Special to The Financial Chronicle)

SAN

has

added

been

the

to

of Lester, Ryons

Fifth
Hill

Calif.—Vance A.

DIEGO,

Gustafson
staff

Ave. He
Richards

& Co., 1770
formerly with

was

&

Co.

Joins A. Wayne

Hough

PASADENA, Calif. — Ru.dolph
Longmire has joined the staff
A. Wayne Hough & Co., Se¬
curity Building.
D.

of

A. J. Wester With

to

The

for

of

members

of

Calif—Albert

SACRAMENTO,
J.

Wester

with

2200

has

Richard

Sixteenth

merly

a

associated

become
A.

Harrison,

St.

He

was

partner in Parker,

Taranto

&

Inc.,
for¬

Wester,

Co.

I

stabilizing

primary

Inc.

(Special to The Financial Chronicle)

think the group of nations I
have
mentioned might well collaborate
ion this
problem,as well as on the
world

of
and

sale

Richard Harrison,

in Wash¬

the

associated

book

operations

political dimensions.

Commission of the European Eco¬

ington,

the

publication, through a subsidiary,
of
Collier's
Encyclopedia
and
other books. The company's con¬
solidated gross revenues in 1958

For
example, when Professor
Hallstein, the President of the
nomic

business
is

(Special to The Financial Chronic'/:)

major industrialized

group

principal

Crowell-Collier

OEEC.

Western

selling stockholders are:
Corp., 96,834 shares;.

Knapp

But the time may

ripe when

some

share,

per

Publication

national pol¬

our

Crowell-Collier

associates.

and

It is not my purpose here to set
in detail what I think the

icy should be.

The

yesterday (Aug. 5)
M. Loeb, Rhoades & Co.

by Carl

forth

precise lines of

of

made late

was

the

as

speaking encouraging words
resisting the temptation to

so

secondary offering of 200,000
shares of $1 par value of common

political

integration

't.

A

Publishing Co. at $21 %

Initiative

European

economic

Stock

effort

—

from this problem of choice.

evolution

and

made

critical national decision—whether

United

Commonwealth

have

we

tion and recovery were the
prime
need of the Western World.

making this assertion.
After all, the non-member Euro¬

the

to

cess

time

economic decisions within the
framework of economic
institu¬

in

smug

enjoyed the best
worlds—preferential ac¬

both

long

a

weapons of the last.

sive to modern economic realities

our

dom would have
of

with the

in

Kingdom.
in

we are

always prepared to fight the next
war

we

of

now

with

them

presents

well-being all

It is ancient wisdom that

non-member European nations is
that we have accepted the propo¬
sition that European unification is

or

investment

flowing into the Common Market

this

point cannot be emphasized too
strongly — was a purely commer-

differ

them

to

seem

sufficient

and

between

large share of

a

direct

trade arrangements of the Com- the continent with whom they
mon Market to the whole area of have
long
enjoyed
commercial
the 17 OEEC countries,
relations, containing the melan¬
There has, I think, been con- choly advice that those relations
fusion in America as to the nature are being terminated in favor of
bf the Free Trade Area proposal American companies which are
and some misconceptions as to prepared to invest capital or make
why the negotiations failed,
other attractive concessions.
The Free Trade Area—and

what

serious

proposed by the

was

Kingdom,

American

spectacle of their Common Market

a

good

For

Common

the

Free

the most part

particularly true
of
which, under the
Free Trade Area proposal would
serve as the nexus of two trading
systems,
the
British
Common¬

present danger. They are
confronted
with
the
disturbing

Tra(te Area that would extend the

outside

the

tough commercial
questions that are

tions

be

in

Market will operate as.a divisive
force 111 Europe. This view has
been given currency particularly
s*nc.e the breakdown of the negoNations last November looking

have

the

of

although in

coun¬

Common

^n

divisive

Britain

Great

of

th^ commercial implications of the

its

alarmed by

be too

and

listed,

would

Area

For

Divide

nations

have

problem—the same prob¬
lem it poses for the United States

Trade

felt

They

would

non-member

Market

well not to

a

Atlantic Com

our

supporters of

Market.

Free

the

tries

source

Washington

time

create

the

trends

do

would

we

should

of

however, that by continued and
systematic consultation
among the

For

that

Europe?

bestTparttarfnd i^many c111

the

from

years

producers.

It

present

„npvafif,n(!

external tariff' into the Common
Market in competition with local

at

if

that

there may be a second
of investment two, three or

present

Wilfhp unable to export over the
be nnihlpa?neAvnn?f:tal
will

a

move

trade

do

Market

ardent

most

Common

Producers

Not only is it likely that American

of

I

enjoy all the com¬
mercial advantages of free access
to the Community while shunning
the political responsibilities which
the
Community
imposed.
This

the

Directors.

greater

So far the most spectacular effeet on American business associated

than the opportunities of getting
in, in order to justify investment
decisions
to
their
Boards
of

continue
01

United

emphasize the dangers of staying
out of the Common Market, rather

Trade Area for the

<=eek

increas

we

creation

to another—they have felt unwill¬
ing or unable to assume the politi¬
cal obligations of the Treaty of
Rome. Yet, at the same time, the
coming into being of the Common

the

of

doubt

need

flow

think, however, that

—which

Area

Market

no

the

of

contributing to the reso¬
the
basic problem
of
European economic integration.

the proposal

Parenthetically, however, I suspect that corporate managements
have frequently found it useful to

Common

the

propose

of

Market.

ta2e*

the

should have

trade

without

refusal to agree
a common external tariff rendered

American

trenched export markets from be*ng swallowed up by local pro-

the

to

facilitates

1959

commercial

that

mean

industrialized

Queers that enjoy a tariff advan-

Given the continuance olfavorworld economic conditions,

not

it

this, the
to the principle of
from

apart

implications of the
last
point can be best seen in relation
to
the
investment
policies
of

able

do

countries

But

+the ™are des\re to1 Pr°tect ?n~

from the rest of the world.

distortion

I

I

countries with the lowest external

confidence

competition

it

an

policy.

tariffs.

heen a positive response to a
beckoning opportunity rather than

face

valuable

prove

its members, but if it re¬
as
simply an additional

lution

greater agreement for
ing liberalization in

implications.
Nor
should we be unsympathetic with
dilemma
the
of
the
European

petition of the Common Market,
they will acquire the ability and
to

trading

preferential trading area on the
periphery of the Common Mar¬
ket, it could result in an artificial

have

would

measures

bridge

a

6

liquidity and, finally, might

in part

European

that

mains

external tariff

to build

effort

may

have

the outside
world so as to gain the maximum
national advantage.

to

A

Thursday, August

..

munity.

extent

com¬

own

mercial policy toward

ket

American

policies

a

adopt

It raised formidable technical and

D00m-

lib-

more

eral than the commercial

of the individual countries before

suc

been

to

tariff.

external

mon

Tt

witwS
has been attracted

af(

nations

ber

response

scheme.

since it did not require the mem¬

to fixed capital formation has
in
line
with
the
improved ex- been not only higher for the Comchange position of individual munity than for the United States,
member countries.
If present but has been increasing at a faster
ization of quotas on dollar imports

it

and

Market

larger

a

doubt

No

defensive

Common

serious

a

clear.

less

even

is not yet

.

com¬

the

might usefully consult also
questions of international

Birr Adds to Staff
(Special to The Financial

SAN

Myron
added

FRANCISCO,

Chronicle)

Calif- --

McElwaine has been
the staff of Birr & CO.,

M.
to

St. He w
formerly with Walston & Co., 1
Inc.,

155

Sansome

'"*$! i

~

Volume

Number 5870

190

.

. .

The Commercial and Financial Chronicle

(529)

called

WALLACE

BY

pattern of much gen¬
irregularity at any, given
moment, but an industrial av¬
The

eral

year

STREETE

tion

much

was

of

market

a

The emphasis continued

spur.

stock splits, both real and
anticipated and" long lists of
erage that forged laboriously
possibilities, circulated
but persistently to a series of split
brokerage houses, helped
new all-time peaks, continued by
this week with an occasional heighten the interest.
interruption to the forward
"Split Candidates" Still
on

progress to keep everything
normal in a market that sel¬
dom goes
too

long.

100

added up to

It

a

summer

rally by the blue chips that
hasn't yet shown convincingly
that it is all over. The initial
target for the rally has been
rather widely seen as the 680685 area, a figure computed
on

expectation of an earnings
that materialized

rebound

about

And the average just
made the lower level

of the

target area for an im¬

fully.

Prominent

provement so far this year of
nearly 100 points in this ba¬

line,

considered

was

split possibility in
and

ner

there

tions that it
in

were

was

a

a

cor¬
indica¬

some

hot

its program to snap back
includes disposing of several

being paid the auto sup¬ Tegeler, Senior Partner and cofounder
of
Dempsey-Tegeler &
pliers. Their reports indicate
Co., has been elected a governor of
tion in efficient plants have that business did pick up per¬
been accomplished. It enabled ceptibly as auto output ran
the company to snap back well ahead of a year ago until
been

negotiated,

tion

and

mechanization and concentra¬

from

a

the shutdown for

small loss in the first

profit in the sec¬ started.
quarter sufficient to lift

letters between stockhold¬ ond

and management, in some
cases a reluctant
management

of

Tegeler Named

subject quarter to

ers

this

is out.

have

Virtually every issue sell¬
in one direction for
ing above par, or close to the

before

which
suffered
during last
year's business letdown. Con¬
The ailment most bothering marginal or unprofitable units versely, this gives the com¬
Ward
has
been
continuous that hampered it last year.
pany
the chance for good
shrinkage in its profit-mar¬
showings during a period of
Motors Subdued; Suppliers
gins despite an equally steady
recovery such as at present.
Active
increase in volume. Last year's
[The views expressed in this
Auto shares were the sub¬ article do not necessarily at any
total volume, in fact, was a
section, including the time coincide with those of the
record. Then efforts directed dued
"ChronicleThey are presented
toward
expansion, diversifi¬ independents which have had as those of the author only.]
a
cation
and
good play on occasion up
efficiency were
stepped up. A joint venture to here; the restraining influ¬
with Gerber Products, which ence being how the compact
Jerome
will make a nutritional bread car competitive battle will
Governor of IBA
for babies and children is un¬ shape up this fall. There was,
ST.
LOUIS,
Mo. —Jerome F.
derway. Two new acquisitions however,. considerable atten¬

seems

The Market... and Yon

for

the

didn't

have

to

*

*

-sjc

U. S. Rubber illustrated the

earnings rate ahead of last
A continuation of that

auto rebound with its double

profit for the June quarter,
along with a nearly double

is

anticipated.
The
it did do was breed some er¬
shares, around 16 lately, are
ratic price action not wholly still a dozen
points under the
in accord with basic factors.
1954 high and only a little
♦
*
*
r
improved over last year when
There were other split can¬ the problems all came to a
that

models

new

a

year.

swayed by the holders. What trend

didates

half net.

first

however, is

U. S.

Rubber,

big factor in the
replacement tire market that
is separate from the original
equipment business. And it

head.

a

has trimmed the tire volume

the relatively high
Promising Chemical Issue
to where it accounts for only
standing of the general run.
The more obvious recovery about half of sales, with the
Oils had come out of their McQuay-Norris Mfg., in the
auto parts and electrical prod¬ in the chemical section is Olin company now in a dominant
doldrums and showed strength
ucts group, was projected to Mathieson which not only felt position as a supplier of chem¬
enough times to make it seem
attention when its half year's the recession hard last year icals to the rubber industry.
more
than a casual stirring.
but decided, once the divi¬ The
upturn also makes this
doubled.
That auto¬
But that did little to clear up profit
dend had to be halved, to
company a candidate for divi¬
other areas where uncertainty matically made it a candidate
for
a
better
cash payment write off some of its startup dend improvement in the ex¬
has been a way of life for a
and development expenses on
pectation that the current rate
and, since it has only some
long time; such as the utilities
an accelerated basis. This vir¬
will
be
covered
some
2V£
and rails which dragged even 427,000 shares outstanding, a
split candidate as well to in¬ tually guarantees that earn¬ times over by profit this year.
when industrials found the
crease the number of
shares ings comparisons this year
The Search for Higher Yields
going easy.
available for trading. Prior to will be glowing, particularly
The hunt for adequate
since most of the writeoffs
Defense Issues Slowed by
the good earnings the shares
were
Political and Earnings"
accomplished during the yields as the fast-moving is¬
had held in the low 20s with
sues
soar to
insignificant re¬
the dividend yield of nearly second half of 1958.-, Never¬
News
theless, the company's second- turns centered occasionally on
attesting to the neglect
Defense shares were defi¬ 6%
the shoe shares, which have
on
the part of investors.
It quarter results this year were
nitely easy on occasion, again
been a pedestrian group in a
more than double the similar
showed better action later but
not a new note.
Attempts to
period last year, and the first seemingly irrepressible mar¬
interpret the exchange visits is still far from being one of half total was
nearly double ket. Endicott Johnson, for in¬
the more prominent sprinters.
to the countries
by the heads
last years. The issue now sells stance, has yet to wander over
*
*
*
of the United States and So¬
well below the 1956 and 1957 a range of six full points for
There was also some atten¬
viet Russia as an end to the
peaks reached by the shares the year. It offers a return
cold war and an end of de¬ tion being devoted to issues
before its troubles multiplied. of around 43/4% at the recent

rometer.

*

*

reach

*

fense work seemed
it

suffered

strained; that

last

year

and

plausible that the still haven't built up any pop¬
earnings statements from ularity although a rebound in

With

the

poor

these

areas were more respon¬

their fortunes

sible.

such

One
*

sf:

with

assured. candidate

Ward

Baking dend this

is

*

Except for
ment

came

an

occasional

and

then

Mr.
of

the

more

for

figures

a

ac¬

better

a

It is

year.

diversified

to have turned the corner and

good dividend

even

divi¬

of

to

of

one

the

turns

the

the

1956

$2

and

that
1957.

resumption

dividends

of

This

advertisement

these

securities.

constitute

u

an

is

neither

The

an

offering is

offer

made

offering in any State in

to

a

Mississippi

past chairman
Valley Group.

Rose & Co., 1 Wall
Street, New York City, members
of the New York Stock Exchange,
that

announced

has

been

Abram

sell,

nor

which such

This advertisement is neither an offer to sell nor a solicitation of an offer to
buy any of these Securities. The offering is made by the Offering Prospectus.

20,000,000

SHARES

(Par Value P.01

COMMON

(Special to The Financial Chronicle)

MILWAUKEE, Wis. — Clement
L. Heinzel, Herbert M. Taylor and
Peter

Y.

sociated

ties

Taylor have become as¬
Continental Securi¬

with

Corp.,

611

North

Broadway.

Mr. Herbert and Mr. Peter Taylor
were

don

formerly with Harley HayCo., Inc. in Madison.

&

With Alexander Kleine
(Special to The Financial Chronicle)

in

MADISON,
Friedman

—
Harry M.
joined the staff of

Wis.

has

Alexander

Kleine

&

Chicago.

an

offering

buy

to

This advertisement does not

offering may not be made.

(Equivalent

to

ISSUE

'A

'
>

.

'

200,000 SHARES

SIP'N SNACK SHOPPES, INC.

STOCK

Par

U. S. Yzf)

Value $0.10 Per

COMMON

\

Share

STOCK

OFFERING PRICE $.0125 PER SHARE

Offering Price $2.00 Per Share

.

Copies of the prospectus
the undersigned as

,

may
are

be obtained from such of
registered dealers in,

securities in this state.

■

Engaged primarily in the operation of snack counters, bars and refreshment
stands in various retail stores and sport and amusement centers,

WEUM6TM HUNTER ASSOCIATES
B

EXCHANGE PLACE, JERSEY CITY 3, N. J.

GABERMAN 8 HAGED0RN, INC.




MANILA, PHILIPPINES

>

in Connecti¬

cut, Delaware, Indiana, New Jersey and Pennsylvania.
1

A

HE 5-6005

Prospectus with

respect to

these securities may be obtained from the

Underwriter:

INVESTMENT BANKERS OF AMERICA, INC.
1522

CONNECTICUT AYE., N.W,
DE

2-2500

as

Three With Continental

i-

NEW

Feuer

general partner, and the firm's
name
has been changed to Gart¬
man, Rose & Feuer.
-

solicitation of

a

J.

the firm

admitted to

a

Endicott

by the Prospectus.

the

& Feuer; NYSE FIRM

rate

prevailed

of

Gartman,

better

present $1.60

Tegeler is

the

company seems

vice versa, neither the actual
nor

an

Convention

1959

Now Gartman, Rose

entirely. chemical companies and part Johnson's forte is work shoes

omitted it

earnings improve¬
However, the
as
a
surprise, or

plus

the

Association to be held in the fall.

continue, Olin is clearly a showing if, as expected, it re¬

seems

which cut its dividend in 1958
item where

to

expected price

recovery

Tegeler

of
America,
representing
the
Mississippi
Valley
Group.
The
term is for three years beginning

x

was more

F.

Jerome

the Investmet Bankers Association

....

.

17

WASHINGTON
TWX

WA

S, D.C.
312

Co.,

of

and Financial Chronicle

The Commercial

18

^

J

OFFICERS, ETC.

NEW

of .Directors

Atlanta

in

held

Associates

Georgia

of

Company

'

announced

CAPITALIZATIONS

appointment of Richard I.
Assistant Vice-Presi¬

an

capital stock from $240,$360,000.
(Number
of
outstanding, 7,200 shares,

common

to

000

shares

Trust Com¬

dent of Manufacturers

value $50).

bank's

W.

Harold

named

formerly

Johnson,

has been
Trust Officer at Bankers

Assistant

Officer

Trust

a

N. Y.,
announced July 30 by Wil¬

Trust Company, New York,

it

was

liam

H.

Chairman of the

Moore,

Board.

Coincident with

the announce¬

ment, Mr. Moore made known the
Dixon, Personal

election of Arthur
Trust

Department, to an Assistant

Trust

Officer.

with
since

been

has

Johnson

Mr.

Company

Trust

Bankers

the majority of
Banking and
Departments.
He
officer of the bank

; 1926 and has spent

his

Trust

elected

was

in

the

in

career

Personal

an

his career with

Mr. Dixon began

*

*

"

-

York, announced plans

1u I., New

to construct a new bank
and office building in Riverhead,

Aug.

4

Warwick,

released jointly

was

that the

said

the

which is to be made on Aug.

Individual

shareholders

bank's

each

of

meetings
will

held

be

Sept. 2 to vote upon the pro¬
posal to consolidate, according to
the two presidents.
on

The consolidation terms provide
for the exchange

the

of IV3 shares of

Pittsburgh National Bank

new

for

stock

each

for

stock

new

share

present

Fidelity stock, and of

one

of

share of
share

each

of

H.

Lucas,
now
Board
of Peoples First, will

Chairman

Vice

become

Chairman

the

of

Board; and Philip K. Herr, Vicein

President

charge of the Trust

Department

Fidelity,1 will

at

be

July

effective

dividend

shares

outstanding,

value $50).

from

^

$8,224,000,
capital funds in
000,000.

F.

Greenwich,
President,
succeeding Carl C. Francis, who

Trust

of

Company

elected

was

1

Chairman.

as

serves

Kenneth

Aug.
of

3

Howie,

Directors

of

fective

its

increased

J.,

N.

Mantua,

Norristown,

the

Mr.

appearing

held

property
BANK

NATIONAL

STERLING

TRUST

&

COMPANY

YORK.

OF NEW

The

of
by

owners

as

claimed

PERSONS
certain
un¬

OF

NAMES

OP

the

lowing

known

below
above-

are

from
the records of the
named banking organization to be entitled
to
unclaimed
property
in
amounts
of
appear

twenty-five dollars
AMOUNTS

Joseph

Forest

Hills.

Shirley

Alderton St.,

63-125

Y.

N.

Ripps

Forest

DUE

Beckwlth,

T.

65-44

Sacnders

St.,

65-44

Saunders

St.,

ITF,

Hills. N. Y.

William
Forest

Hills,

Frances

Y.

N.

ITF,

63-02

Saunders

St.,

N. Y.
Krone,
N. Y.

63-02

Saunders

Senior

AMOUNTS

HELD

OR

an

The

A

Zinman

S.

*

*

St., N.

136-8

Premises,

C.

Y.

report of unclaimed property has been
the State
to
Comptroller pursuant

list

notice Is
tion

the

of

bank,

the

New

York

abandoned

abandoned

on

before

or

establishing
the

before

its

to

31st

will

next,

satisfaction

to

paid

be

persons

their

rignt

same.

succeeding

the

claimed
Levitt

October

the

receive
In

property

thereupon

November, and on or
day
thereof,
such
un¬

tenth

pronerty

the

State
cease

will

be

paid

Compfr«il"r
to

be

liable




to

and

which

*

*

*

capital stock by

mon

Bank

of

than

stock divi¬

a

'

••

-

"*

sale

cf

^

Bank,
its

increased

f+ol

common

cap-

froT~

$3^0

,

.

July 22.
(Number
of
shares
outstanding,
12,000
shares, par value $25).
effective

000,

*

Chauncey

*

*

J.

,

Medberry III

Vice-President
of

-

_

America,

Los

that

which

shares outstanding,

12,000 shares,

value $33.33 V3).

is

the

*

*

Arthur
It,

therefor.

shall

elected

was

to

as

what

the election

as

a

of

Louis

A.

member of the bank's

By

to

dividend,
National

the

First

Bank

increased

of

shares

outstanding,
value $100).

5,250 shares, par
*

a

*

First

*

National

Stoutland, Mo., with

Bank

of

W.

Coast

velopment Bank for Puerto

New York office. He was

the

Warren

Rich¬

Rico*

formerly

Guaranty

Trus^

Company, New York.

land, Mo. Absorbed by: Pulaski
County Bank, Richland, Mo.

Joins Scott,
SAN

Bancroft

ated
235

FRANCISCO,
B.

with

are

indications

restricted because
industry and commerce have to be met.
hand, there could still be an increase in the prime

rate and the discount rate this fall because
funds.

of the

boom

demand

for loanable

Koehler

is

Calif.
now

Scott, Bancroft

Montgomery Street.

Federal Land Banks

& Co.,

of

security

banks.

The

announced

dealers
and
offering price

on

or

about

dealer
will he

August H

repay short-term borrowings and
provide funds for len

ing ooerati-ns, John T. Knox. Fi^mrl AT^nt
of the banks, announced
today.
new

consolidated
will

livered
—

are

arranging to effer publicly $98
million of 4%% 3-year bonds to

be offered

affili¬

Street, New York City, with the
assistance of a nationwide group

FLB to 6ffar Bonds
The 12

The

(Special to The Financial Chronicle)

Charles

There

*

died Aug. 3, at the age of 52. Mr.
Towne
was
head of the Bank's;
of

markets.

;

common ran-

into
voluntary liquidation by a resolu¬
tion of its shareholders dated July
8, effective Julv 13.
Liquidating
Gordon

West

D.

officer

money

On the other

C. Towne, Jr., a VicePresident of the Government De¬

ital stock of $25,000 has gone

Aa#»nt*

of the
*

tightening of the

joined

National with U. S.

John

further

U. 7 S.

the

merger

■

He

S. National in 1930 at the time

an

The

3.

of

its

capital stock from $420,$525,000. effective July 21.

'Number

July

on

give the

>

at

Vice-President

tive

National

demand for loanable funds will

likely to take place.

that the money markets will not be
excessively
the legitimate needs of

named Execu¬

of

*

common

000

was

U.

$

stock

a

Minnehaha

ing, Mr. Kolar

is

of margin to meet the demands that could be made on them. To
be sure, the monetary authorities could make some reserves avail¬
able to the deposit institutions and in this way there would not be

,

•

an¬

Treasury,

The trend of the short-term market will no doubt be deter¬
mined by the needs for loanable funds this fall and the present
indications are that the banks do not have too much in the way

Bank's Board of Directors July

Detroit, Midi., July 28

issues.

Booming Loan Demand Impends
-"■•t

member.« of - the

a

Government

*

*

k

in

not likely to be very much

time in the fall and the
answer

*

available

past, because there are no indications that the monetary
are going to make any changes in the policies that are
currently being pursued. It seems as though the next important
developments in the money markets will not be coming until some

Angeles,

31,
according to an announcement by
E. C. Sammons, President.
Joseph M. Dodge, Chairman of
A veteran of 35 years in bank¬
The Detroit Bank and Trust Com¬
7

is

authorities

Calif.
•

and the funds

continuing to take tax losses

are

are

the recent

v

was

of

Active

developing in the money and
capita] markets in the near future since the corporate calendar is
on t
e thin side and the tax-free
offerings do not show any signs
of being stepped up to any extent. Also, this is the time of the
voar when +h* interest in the capital market is not very dynamic
because it is ihe heart of the vacation period.
Accordingly, it seems as though the money and capital markets
will operate within the limits which have been established in

stock the
Conroe,

new

even

Quiet Markets Indicated

•••

National

of guesswork,

Aside from the August new money operations of the

par

there

*

•

the

By
To^as.

shares,

172,515

fair amount

considerable

is

dend, from $1,627,500 to $1,725,150,
as of July 22.
(Number of shares

outstanding,
value $10).

a

going back into Government obligations because they are being
used for loans which still give a return that is more attractive

of

Bank

to

replacements for most of the obligations that are being disposed of.
In some instances, however, the proceeds of these sales are not

■

National

Capital

open

if Treasury bills and tax bills will again play

as

being realized from these sales are being put to work
in many cases in the 4%s of August 1960. The return that is avail¬
able in both of the August refunding issues makes them attractive

effective

is

Avary

is

done

institutions

few

Bow¬

Ohio, increased its com¬
E.
J.
capital stock from $300,000 to
Kolar, Executive Vice$400,000 by a stock dividend ef¬ President at the United States
fective
July
21.
(Number
of National Bank of Portland, Ore.,

18,

property

payable.
Such

to

such

in

to public inspect

office

Broadway,

where such

Law.

Property

contained

open

principal

1410

at

New York,

is

names

file and

on

at

Abandoned

the

of

located

the

of

#301

A

Mr.

*

Minneapolis, Minn.,

made

to

and

as

switching being reported, with cer¬
tain long and intermediate issues being sold and the proceeds
reinvested in the 4%s due 1964. It is also indicated that quite a

Aug. 1 and they will assume their
duties full-time on Sept. 1.

Bank

National

>:«

430-426

doin

of both Mr.

election

The

far

New 4%% Issues

Executive Vice-Presi¬

as

be

There

tional Bank of Miami Beach. Fla.,

elected

Board of Directors.

Caputo, Address unknown.
#402—E. Tonkin, Address unknown.

55th

W.

For

as

important roles in this operation.

very

Vice-President of
the past year, he

a

was

bank.

an

Maker—Frank
Wm.

that

1906, and J. Warren

CHECKS

S.C.A.

Mr. Avary was with the
National Bank of Atlanta,

First

will

this

though it looks

1956,

Ga., and

at the moment,

in

(now

Ironton,

Fisher

OR CERTIFIED

INSTRUMENTS

Sheldon,

officer since 1916.

First

nounced
FOR

OWING

fol¬

were

Barrett, who has

W.

*

OF NEGOTIABLE

PAYMENT

THE

since

officer

pany,

Deposit—Unknown.

Commercial

Howard

1920,

the

Vice-Presi¬

officer of the Bank since

an

St.,

Krone

Park,
Rochelle
Rego Park,
Rego

Joy

been

par

Ripps.

M.

the new money raising
to be pretty much
agreement, namely, that the Treasury will take care of its
cash needs through the sale of short-term securities. As to how
The opinions

operation of 1he Treasury is concerned, seem

Morgan Guar¬
anty Trust Company). From 1929

to

much new money in its im¬

the August

of

Commerce

of

Bank

as

small amount cf cash that' was asked for by those who owned
maturities.

very

the

and

raise

pending venture as had been previously expected because of the

mon

more.
ON r>EPOSTTS

or

Fla.,

Orlando,

Ccnroe

meeting

same

to

Ziegler,

addresses

in

York

New

the

of

Vice-Presidents

last

names
and
set
forth

whose

persons

Treasury will not have to

Point, two

National Bank of West

Executive

the Bank.

Board of

At

will

Howie

member

a

dents: B. Brooke
NOTICE

Board

Montgomery

Pa.

as

elevated

LEGAL NOTICE

elected

was

of

Norristown * Regional

stock,

new

Division and will con¬
position.
Avary, Jr., is a native
of West Point, Ga., who gained
banking experience with the First

Austin, Texas, increased its com¬

County Bank and Trust Company,
continue

ef¬
July 22, the National Bank
of

refunding of the August maturities had a good effect on the money
market and the capital market, since it appears as though the

Arch

The
*

Member

a

total
$89,-

making
of

excess

*

*

*

*

sale

the

By

Company in
Corresnondent

tinue in that

banks

be settling down to the process

digesting the refunding issues, while at the same time it is
looking towards the new money raising operations which should
be announced in the near future. It is evident that the successful

of

Banking
J.

very much of

Money and Capital Markets Buoyant
The money market appears to

7 ;

has been with the Mercantile Na¬

1959, deposits of

serves

*

-Conn.,

the

will be

that be does not yet seem to be in the cards.

powers

dent and Director.

Ostrom, Executive
Vice-President
of
the
Putnam
Vincent

Trust

the

of

charue

763,000 and total resources were
$990,476,000. Combined capital
and surplus were $81,000,000 and
undivided profits and capital re¬

21

*

*

*

V

of

dent

up.

change in the demand for Treasury issues other than the shortterm obligations until the capital markets are showing more than
signs of a temporary recovery from what might be termed an
over-sold position.
A less restrictive policy on the part of the

Georgia for 13 years.
He was
formerly Vice-President
of the
Trust Company of Georgia Associ¬
ates.
He is a Senior Vice-Presi¬

its

;

,

again with time.
Accordingly, it is not expected that there

for¬

was

the equity market is also

work

Asso¬

merly President of the First Na¬
tional Bank of East Point and has
been with the Trust Comoany qT

serving

(Number of
4,000 shares,

$100,000 to $200,000.

chology is strong and the course of

High money rates have had a restraining influence on the demand
for funds in ihe past, and there are no indications that it will not

Vice-President

Bowdoin

R.

the two banks amounted to $876,-

I., .increased

R.

opinion of not a few money market specialists that the trend of
rates will still be upward as long as the inflation psy¬

interest

of the Associates.

National

Peoples First.

obligations are in a position to regain that spot in the limelight
being the prime investments they were in the past. It is the

of

ciates and J. Arch Avary, Jr., was
Executive

Government securities continues to show signs
there are no indications yet that t iese

The interest in

of selected betterment, but

of the

pany, was elected President
Trust Company of Georgia

billion of tax bills, payment for
19.]
v

bids will be opened on $1

1

.

Vice-President of the Trust Com¬

William

i

been

has

Bank

capital stock by a stock

common

©f

who

step would be
to obtain approval from the share¬
holders of the respective banks.
next

As of June 30,

National

*

par

news

Byerly, President of Fidelity,

*

*

*

Centreville

The
©f

the new
National

of

name

Senior Vice-President.

L.I.

-

stock of six banks m
- /

Ivy W. Duggan, President of

■

yesterday (Aug: 5) announced its next
involving cash borrowing of $1.7 billion.

v

major Georgia cities.

named

This

John

Security National Bank of

The

The

M.

Ray

Currency

by Frank E. Agnew, Jr., President
of Peoples
First, and John A.

Company in 1925.

*

the

of

Bank.

the

1953.

Bankers Trust

July 28 from Comp¬

here

troller

bank is to be Pittsburgh

*

*

♦

;

unexpectedly, the Treasury late
financing offer,
1
Of this amount,
$700 million will be obtained via the sale of Treasury
bills, probably of 91 days' maturity, with the initial block
.—'- -.of $200 million to go on sale Aug. 13.
On the same day
..

substantial majority

a

of the capital

Associates,

*

Gidney.

Office.

Street

27th

the

to

assigned

is

Cluett

Mr.

par

ceived

Assistant Secretary.

4

-

advised by
*
*
»*
his physician to curtail his activ¬
Preliminary approval for con¬ ities and reduce his responsibil¬
He
solidation of Peoples First Na¬ ities.
has, therefore, relin¬
Mr. Cluett joined the bank in
Bank & Trust Company, quished his position as President
1936 and was assigned to the Cen¬ tional
tral Credit Division.
He became Pittsburgh, Pa. and Fidelity Trust and returned to the Trust Com¬
Pittsburgh, Pa.,
this pany of Georgia as Vice-President
Assistant
Manager of the Park Company,
city's second and third largest on a full-time basis.
Avenue South Office and in 1951
banks respectively, has been re¬
-William
R.
Bowdoin,
Senior
was appointed to the position of
York, N. Y., is an¬
nounced by Horace C. Flanigan,
Chairman of the Board.
New

pany,

.

holds

and

as

4

CHIP PEN DALE?:'J R-

JOHN ' T.

BY

[ED. NOTE—Rather

Atlanta, Ga.,

Company of Georgia,

"S
The

Thursday, August 6, 1959

changes in the

major

organization. The Trust Company
of Georgia Ajsociates is a wnoli-y
owned
subsidiary of the Tru,.t

duett

*

-

30,

..July,-

on

.

Charles E. Thwaite, Jr., Chairman,

REVISED

•

.

7?t)ur?RepoTteT ^h Governments

Trust

the

of

^

BRANCHES

NEW

Fellow}hg*>'-a;^

BoardI

CONSOLIDATIONS

•

.

(530)

August

August

20,

be

dated

25

1962.

bonds

and

Trey

non-callable.
The

through

(Special to The Financial

LOS

will

Knox,

be

130

Chronicle)

ANGELES, Calif. —

Sah

Kappe has rejoined Marache, Do mature flemyre & Co., 210 West Sevent
will
be St., members of the Pacific Coa.
and

de¬

Stock

offering
Mr.

to

With Marache, Dofflemyre

made

William

Exchange.

recently
been
Tegeler & Co.

Mr.
with

Kappe n<*!

Dempsey

Volume

190

Number 5870




.

.

.

19

(531)

The Commercial and Financial Chronicle

This, too, is Texas Eastern

The system

that

keeps

on

growing...

after

year

year

In 12 years,

Texas Eastern's pipe¬

line system

has

miles
miles
two

and from

...

from 3182

one

8000

system to

delivering natural gas

one

—

grown

approximately

to

and the other

petroleum products.

The natural gas transmission system,

alone, includes over 6100 miles
of

pipe,

15 states between

spans

Mexico and New York and deliv¬
ers

billion cubic

600

than

more

feet of gas a year

for

in count¬

use

less homes and industries

the number
Our second

Inch

pipeline unit, the Little Big

Division, includes

miles of

with

...

constantly increasing.

1800

over

pipe, and is, today,

of the nation's

one

largest and most

important petroleum products
transportation facilities. The Little
Big Inch system

vital

serves as a

link between refineries of the Gulf

Mid- Continent

Coast and

areas

and the vast markets of the Mid¬
west—

transporting the full

of clean

petroleum products: gaso¬

lines

jet and diesel fuels... heat¬

...

range

ing oils... and—of ever-increasing

importance—liquefied petroleum
gases

(propanes and butanes).

Truly,

ours

system

—

is

growing pipeline

a

growing in length... in

volume and

variety of services ,..

and in value to the nation
tile transporter

as a versa¬

of natural

gas

and

petroleum products.

TEXAS

EASTERN

CORPORATION

TRANSMISSION

PRODUCERS
Natural Gas

•

•

I

1

I

EASTERN

TEXAS
'

TEXAS EASTERN

I

%

HOUSTON, TEXAS
1

-

•

TRANSPORTERS

Petroleum Products

\

|'

|

SYSTEM^ '

%jf
■;l

:

•

PIPELINE

^

/tt42^s?n^co?z> I.? f

PROCESSORS

Crude Oil

SHREVEPORT, LOUISIANA

V\\

.T

"*

■

20

The Commercial and Financial Chronicle

(532)

of

Career

throughout the country.
reveal to syndicate
personnel the nature of the busi¬
ness of a given firm, the type of

Opportunities Beckon

In the Securities Business
panel discussion, moderated by Worthington Mayo-Smith,
President of The Investment Association of New York, and
of Blair & Co., provides

an

heart

of

banking;

investment

characterized

link

the

as

syndicate

the

the

between

inviting

department is

buying and selling

ican

Colleges and Universities was the Career Opportuni¬
New York City members of
the investment banking community cited the excellent
prospects open to younger men in various aspects of the
securities and brokerage industry. The Panel was moder¬
ated by Worthington Mayo-Smith, Assistant Sales Man¬
ager of Blair & Co., and President of the Investment
Association of New York, and its members consisted of:
Robert F. Seebeck, Syndicate Department, Smith, Barney
& Co.; John E. Friday, Jr., Buying Department, Morgan,
Stanley & Co.; Walter P. Stern, Manager, Research De¬
partment, Burnham.& Co.; William J. Ruane, Sales De¬
partment, Kidder, xiPCabody & Co.; and Charles S.
Lipscomb, Municipal Department and Vice-President of
ties Panel wherein present

W. H. Morton & Co.

ROBERT F.

By

remarks of Worth¬

tory

Syndicate

Smith,

-

are

President, Investment Association
Of New York

just

want

to

in this

pating

a

as

The

program.

op¬

industry

our

group

such

how

enjoys partici¬

portunity to discuss
with

again

say

yours

is

truly
unique one.

vided he has

dais

1

far
i

n

of

by
most

curities.

ting

word
W. Mayo Smith

tics

group

previously placed at

posal concerning

in the

career

a

dis¬

your

investment business. These figures

compiled from the most
I.A.N.Y.,, Questionnaire

re¬

con¬

ducted in 1957.
Because

of

in¬

in-

Robert F. Seebeck

of

syndicate or underwriting agree¬
ment, to underwrite and/or dis¬

a

issue of securities.

At¬

ing

in

New York

City these

careers

of

the

turn the rostrum

The

tion

ties

representing

Stock

Stock
ers

Association

of

by

aus¬

Educa¬

New

by

Describes Syndicate Work

Securi¬

Ameri¬

Association

of

of

of

York

The

America;

Investment
of

Stock

National

Companies;

Securities

Exchange,

Investment

Deal¬

and

Association

York.




of

an

underwriting account.
In
general, the qualifications of each
such
are

firm

(1)

sume

offered

considered

sufficient

the

important

ppital to

as¬

underwriting liability
it, and (2) a previously

demonstrated ability to distribute
satisfactorily the type of security

being underwritten. These quali¬
fications
years

are

There is

determined

over

doubt that the syn¬

no

a

bright future.

Top

leaders

within

retired

and will
men. In
the smaller firms have

be succeeded
many cases

train

to

younger

have the larger firms, and

as

latter

the

years

by younger

able

been

not

of today will be

10

have

been

not

able

to

train enough of them: The indus¬

the

by the performance records

based

are

on

I

will

what

limit

ment until his death last
year and
who was generally

regarded

the

dean

of

buying

his

firm

in

to

respect

price and compensation. The syn¬
dicate manager supplies guidance
and

leadership

but

the

not

follow

formed

for

the

blindly.

s^hdicate

rect feel of the

account,

members

account

A

partment

syndicate manager pro¬

a

vided he has

feel for securities.

a

You can't get it from a

book, and

can't get it through experi¬

some

ence.
a

in

ness

young
man
with
the
qualifications and a will¬

the intrinsic worth of the
product
are selling. Of the large num¬
ber of firms
in the

investment
banking business only a few, rela¬
tively, are engaged primarily in

The

buying department in such
charged with the respon¬

firm is

a

sibilities of
iness

of

wish

to

sales

of

of

investigating the bus¬

corporations
raise

may
one

individual

represent both the sales and

departments.

firm

seldom

As

manages

the
ac¬

IN

studies

By

THE

the

situation

devising

nants

than

of hard work
a

are

not,
re¬

small firm

issuing

com¬

and other

protective

cove¬

provisions of the
securities themselves and prepar¬

ing the various papers and docu¬
required for the offering of
securities, whether to the public by
of

means

issue

an

also

ment

in

registered with
privately to selected

or

The

buying
the

makes

such matters

stock

valuations
The

depart¬

studies

in¬

giving financial advice
corporate

as

*

splits,

and

Heart

forth.

so

of

mer¬

acquisitions,

the

Business

Obviously, the work of a buying
department such as I am describ¬
ing is exacting work. It is at the
very heart of investment banking

FRIDAY, JR.

and

A tour of what

a

find

to

young man can

and

do

in

an

underwriter's

buying department
is provided by Mr.
Friday. De¬
picting buying as the "very heart

of investment
the

entire

banking" covering
of corporation

range

finance, the writer describes

its

attractiveness

well

and challenge as
tangible remuneration.

its

as

*

Some

often

comparisons

of the

pany,

BUYING

JOHN E.

perhaps

More

*

Buying Department,
Morgan, Stanley & Co.

to

qualifications

and

companies, determining
the type of security best suited to

DEPARTMENT

participation in public

necessary

may

money

such

gers,

expect

be less de¬

who

through the
securities, preparing sta¬

tistical

on
*

in¬

Firm's Work

Small

0r

they

volved

syndicate work.

CAREER OPPORTUNITIES

with a cor¬
market frequently

A smaller firm

"factory"

"manufacturing" end of the in¬
banking industry. The
men in the syndicate or
wholesale
end and in the selling or retail
end
work very closely with the
buy¬
ing department, but in the final
analysis the wholesalers and re¬
tailers
must
rely on the good
judgment of those in the manu¬
facturing end of the business as to
vestment

ments

For

man

profit and a loss to his firm in
competitive bidding account.

the

as

de¬

is

represents the difference between
a

as

this

young .men

should

well

in

men

business, used to describe his

institutions.

of

of

Northey Jones, who was head of
Morgan Stanley's buying depart¬

gently for 5 to 10 years, there are
many. opportunities in our busi¬

views

comments

my

buying department

a

the S. E. C.

meetings
at
which each member of the syndi¬
cate is
expected to express the

in

brief review and

a

ducts

bidding

experience

does
concentrate
on trying to give the
young man's
point of view. The late Allen
to

necessary

the

my

that period.

looking
for
intelligent the business of originating and
with good personal¬ managing underwritings of new
ities
and
pleasing appearances, issues of securities. It is the work
who are at ease in meeting and of
the
buying
department
of
dealing with people. The right these few managing firms which
man
for syndicate work mtist be I'll discuss.
try

the

*

*

have

may

run

across

even read the book

or

about

investment

banking business
by John Brooks which he called
"The Seven Fat Years." The book
covers
the
period
from
1952

the entire field of cor¬

covers

poration

finance.

A

young

man

entering the securi¬
by way of the buy¬
ing department should, of course,
have a bachelor's degree from a
good college. Undergraduate study
considering

ties business

in

business

helpful to
of

economics

not

is

unquestionably

is

early understanding
the problems of the

an

of

some

or

but

necessary

business.

in

work

Graduate

eco¬

nomics, business or law is again
helpful but not necessary. A logi¬
cal mind and a liking for figures
and arithmetic are clearly pre¬
requisites. One is exposed to a
good bit of accounting and a

smat¬

through 1958, and the title of it

tering of corporation law, and ob¬
viously a precise and inquiring
mind is more than helpful. The

alert syndicate man is essential if
the firm is to be consistently in¬

is

need

vited

of

valuable

Even

then,

as

syndicate
member.
the presence of an

into the

more

desirable

ac¬

counts.

In

probably

Mr.

Brooks
the

which

competitive

bidding,

the

smaller

apt

more

realized.

publication

than

even

The

timing
the book,

of

sometime last
summer,
perhaps even a bit prophetic
that the amount of new cor¬
was

was

in

firm, like the larger one,
must protect its interests by
doing
its own research work and by

porate

beginning

of

sending

last

has

thority

cer¬

firms invited to become members
the

on

American

sponsored

Association

New

assisted

with

discussed shortly.

mem¬

Exchange Firms; Investment Bank¬

National
ers;

the

and

under

Committee

Exchange;

Association

those

these

responsi¬

Thursday, August 6, ] 959

.

ingness to work hard and intelli¬

less than the peak level
achieved
in the last several of the
years he
described.
For
example,

to the price meetings a
representative capable of inde¬
pendent judgment and with au¬
to

make

important

de¬

syndicate
department
is cisions.
charged with wise selection of the

held

was

the Joint

Business,

can

to the

panel.

Forum

of

a

to

qualifications which will be

pleasure to

my

over

as

tain

prospective

important

an

also

but

.

lating the potential buying interest
of
institutional
buyers. It
con¬

The

bers of the

*

industry

Now, it is

in investment banking

available

are

not be entirely repre¬

may

account

as

underwriting group and is re¬
sponsible for obtaining and tabu¬

firms

an

of

dicate field offers

the

a

cludes only 550 men working pri¬

pices

acts

in competitive* bidding,
syndicate department forms

many years

marily

whole.

firm

a

quired to establish

tribute

membership

our

issuer

bility of the syndicate department.

become

When

offerings.

a

terms

is

terms

the

quick and accurate with figures,
if any, and underwriting have a facile
mind, sound judg¬
compensation. When the issue in
ment, and the ability to make cor¬
question is released for public of¬ rect decisions under
pressure. He
fering, the syndicate department must be
thorough in all he does
keeps the sales department in¬ and
willing to work long hours
formed of the progress .of the of¬
for prolonged periods.
fering, the identity of large insti¬
Given these attributes and the
tutional buyers, if any, and at fre¬
opportunity to work with a top
quent intervals the number of
man for 5 to
10 years one could
bonds or shares remaining unsold.

warrant its

joined
together by

suc¬

terms,

the

tractive opportunities in syndicate
work for young men contemplat¬

sentative

department information regarding
the
contemplated offering price
and/or yield of the security, re¬
demption features and conversion

vestment

the

be

Determination of

the major firms that his firm has

business

denotes

figures

ity of the syndicate department to
obtain and pass on to the sales

it is interested. To accomplish this
he makes every effort to convince

The

might be interested in the statis¬

cent

participates in a
by
another

firm included in accounts in which

"syndi¬

ment

of

investors.

men

counts, an important function of
its syndicate man is to have his

cate" (as used
in the invest¬

you

.

firm, it is usually the responsibil¬

smaller

and

new

in¬

an

managed

syndicate

through
accounts

secondary of¬
ferings of se¬

phase of our
business, I

were

firm

a

t i

is

e r e s

thought

When

syndicate

may

spe¬

the
t

in the securities markets.

partmentalized and

o n

to

syn¬

of current corfditions

formed feel

will

a r

cialty

feel for securities.

distribu-

such

issues

carefully tailored to meet not only

capacity the financial

with

latter

the

gen¬
on

who

c u

the

this

the

explain to you
why their part i

provides

a

Before in¬

various

a

The syndicate department

a

potential

link between the

a

of an
investment banking firm is fund¬
amentally concerned with form¬
ing
underwriting accounts and
super vising

troducing
tlemen

Smith,

depicts the bright
future syndicate work offers in
linking together the buying and
selling departments. In stressing
the opportunities which do exist
and the attributes an applicant
should have, he predicts that a
qualified young man willing to
work hard could become a syndi¬
cate manager in 5 to 10 years pro¬

Asst. Sales Manager, Blair & Co.

com¬

sales and buying departments and

the

Seebeck

Mr.

By W. MAYO-SMITH

I

Department,

its net

manager

SEEBECK

Barney & Co.

reproduced herewith:

much the I.A.N.Y.

FOR

YOUNG MEN

prefaced by the introduc¬
ington Mayo

WORK

and

are

department is

important feature of the recently concluded Ninth
Annual Forum on Finance* for faculty members of Amer¬

SYNDICATE

requirements

capacity,

deals, its

sizable financial

As

other matters. In this

An

of the talks,

the

distributive

it

these

For

cessfully sold to the public, both
the security and the terms must be

syndicate men are usually
partners or officers of their re¬
dicate members.
spective firms, which indicates the
Syndicate personnel participate importance of the work and the
in discussions with the buying de¬
opportunities it presents. An addi¬
partment for the purpose of de¬ tional incentive to potential
ap¬
termining the type of security to plicants is the fact
that, since few
be sold by the prospective issuer,
young men entered the investment
the underwriting compensation, of¬
business during the '30s and '40s,
fering price or yield, and various the
age gap
is such that many

"

text

needs

which

firms which may be

departments; research is said to be area that can make money;
and the unfolding of opportunities in sales is underscored.

The

the

with

frequently made by
telephone and word of mouth, a
syndicate
manager
must
know
both the capabilities and reliabil¬
ity of hundreds of investment

to career opportunities in

as

clientele

mitments

their respective fields:
syndicate, buying, research, sales and municipal, by five
younger members of the Wall Street investment banking frater¬
nity. In so doing they also describe the work performed from
top to bottom. Growth is stressed as the principal attractive¬
ness of municipal bond field; underwriting is depicted as the

insight

ties.

records

worth.

A

Assistant Sales Manager

firms

Such

.

those

with,

Principal Underwriting Function

financing since about

year

the

last

been

the

quarter

of

considerably

during

seven

years

Morgan

managed

or

the

firm

Stanley

I'm

&

Co.,

is

also

almost

with

if

since

self-evident

information

discussed

is

on

pro¬

arrangements

financial

the part of

one

confronted

continuously

inside

spective
on

impenetrable integrity
keeping one's own counsel

for

and for

corporations

outside

of

which,

the office

used

improperly to one's own
advantage, can lead to dire con¬
or

sequences.

The first months

ing department
more

drudgery

are

spent in a buy¬
apt to involve

excitement.

than

co-managed

new
is¬ While there is always the need
averaging about for imagination from the very first
cipal function of the investment $1,370 million a year, and I don't
day one starts to work, still, prod¬
banker is to channel funds from believe that I need point out to
ucts of a young man's imagination
the small saver and investor into you that things are a little slower
are more apt to
be listened to u
industry where the money may this year Hopefully, we think
they are based on some experi¬
be used to increase or improve we're not in for seven lean
years
ence. There are countless long sta¬
production facilities, for additions but whether we are or not, the tistical
comparisons to be made,
to working capital, or for other last seven fat years have been an
list after list of underwriters to
exciting and rewarding time to be
be checked, par
purposes. This function is accom¬
"ter page
working in the buying
depart¬ dentures, cor4
^nd registiaplished through the purchase and ment of a

It has

been

said

that

the prin¬

sues

of securities

so-called

sale of different issues of securi¬

original issue,"

and

"house

my

of

remarks

tion

statemer4

and many ot7

be

P1"00^1"^

-dious tasKs.

I

,

.

Number 5870

190

Volume

.

.

.

.

The Commercial and Financial Chronicle

.

(533). 21

n

f,, 4

'

T

the tedium, even from
beginning, is relieved at fre¬

However,

the

quent intervals by participation
in meetings to discuss the contents
of

registration

a

statement and

approach to a new piece of

the

is

organization

very

right to work and within a
short time is likely to be

assigned to a team working on a
issue. The team will consist
partner in the buying depart¬

new

of

a

ment,

senior staff

a

member,

a

junior staff member or two and,
on marketing problems, a partner
in the selling end of the firm. One
of the great advantages, in my
opinion, of working in the buying
department is one's almost im¬
mediate exposure to the thinking
of top people in
the securities
business. At the same time, in
wbrking on a new piece of financ¬
ing, the team from the buying
department will meet with top
corporation

the

of

officers

that

came

I

is,

course,

went.

have

must

than

fortunately

before

of

there

work

more

less when I

food

good

I;

,

weighed

back than I did

That
one

sort

of

of

the

trip

more

of which is often not apparent un¬
til the work is well under way.
In

Less

our

there

within

is

not

the

must

man

the

issue

much

person¬

in the course of sev¬
will inspect manufac¬

must

of

consider

business

as

as

I*

(

future

of

to

issue

lose<some of

issued from

the

well

'

and he may well,
his previous expertness in the transition, but at least
during the time he is working on
a given piece of business he
is, or
should be, an expert in that par¬

the

all
points of view including that of its
competition; he must be able to
discern potential weak spots as
well as areas of strength, and he

buying department and
therefore, it is quite likely that a
years

^thoroughly Understand

business

nel of the

young

Romantic Aspects

firm

specialization

eral

relatively

small, and we have no formal
training program. A new man is
put

been

because

spectacular.

financing.
Our

however,

.

,•/_ r^y.-

.

ticular

the

business

on

whom

other

members of his

firm, particularly
in the syndicate and selling ends,
may rely. There is something very
satisfying, particularly to a young
man of limited experience,' in be¬
ing regarded by senior people in
his
organization
as
an
expert.
Clearly, such a position is pre*-

its history.

I think it must be clears from
turing
establishments
ranging
is, however, a great deal from a brewery to a strip mill, what I have tried to describe that
slightly
less
romantic
but from a petroleum refinery to an the work in a
buying department
equally
instructive
travel
in¬ automobile
assembly plant.
He encompasses virtually all phases
volved, usually because we find may inspect an electric generating of
business, and from that point
it advantageous to work on new
plant, a railroad switching yard, of view it affords a young man
issues
at
the
company's head¬ a demonstration of farm machin¬ about as broad an education as
quarters rather than in our own ery, and generally almost every
any business I know of. One of the
office. We feel it is most impor¬ kind of business where there is
principal advantages of such work
tant to inspect the properties of a the
possibility of a need for capi¬ is the eventual feeling of being
company for whom we are going tal. He is expected to observe such
at least something of an expert
to act as managing underwriter, things not in wide-eyed awe but on a particular subject. Of course,
with a large degree of perception one
goes from being an expert on
and we find it necessary in the
and understanding.
one subject to being an expert on
interests of efficiency to be close
In the course of bringing a new
a
completely different
to the source of corporate infor¬ issue of securities to market, the perhaps
mation, the need for a great deal buying department representative subject as he progresses from

There

of

if

carious

one

hasn't

his

done

homework, and certainly

a

great

deal of work and often
are

necessary

long hours
in the attainment of

that

position; but the satisfaction
having a ready and accurate
answer
to
even
one
question

of

posed by a senior man in the firm

Continued

on

22

page

in¬

volved and senior members of the

firms

accounting

and

law

in¬

General

volved. One may go for a year or

without

more

mouth

opening his
of these

ever

the

in

presence

people (and as a matter of fact a

is better off doing just

young man

but the wealth of experi¬
ence,
knowledge and judgment
which he can gain from simply
listening and doing what he is
told much more than compensates
for a feeling of unimportance.
that),

Offers
For

Mills

reports for its 31

Example

an

example, when I had been

in the business less than two years
I

assigned to work

was

member

as a

junior

team

preparing a
big issue of debentures for one of
the largest steel companies in the
country. We did a great deal of
our work on the prospectus in the
on

our

Board Room

of the company sur¬

rounded

by portraits of their fa¬
past directors. Sitting at the

mous

table

same

(although

and

working directly
quietly) with the

very

top officers of this

very
was

experience

an

not

soon

worked

ever

on

for the firm involved the complete

recapitalization of
chemical
issue

Earnings: $16,817,466

including the

company,

of

New All-Time Record

medium-sized

a

debentures

and

common

stock, the latter both for the

com¬

General Mills' Annual Report for 1958-59 is a

pany and for several

selling stock¬
holders. It had about everything
you can get in one piece of busi¬
Needless

ness.
a

to

story of progress. Thanks to the devoted efforts
of the thousands of men and women who make

it has been

say

this record has been made
possible. Our thanks, also, to the millions of
customers who buy the company's ever-

up our company,

fascinating experience to watch

this

at the time practi¬

company,

cally

unheard

the

a

the

stock

of

chemical

into

tracted
the

outside

industry,

well-known

a

of

of

grow

has

Stock

.

•

figures below provide the barest skeleton
of General Mills' financial performance for its
The

at¬

large following

York

expanding variety of products..

company,

which

very

New

$545,998,493

company

I'll

forget.
The first issue I

New All-Time Record Sales:

on

Exchange.

You are invited to write for a free
copy of the complete report. Address: Public
Relations Department, General Mills, 9200
31st year.

How The

Because of the importance to this
company of that original piece of

financing,

the company officers
who worked with us
consisted en¬
tirely of the very top echelon be¬

Sales Dollar

ginning with the chairman and the

Wayzata Boulevard, Minneapolis 26, Minn.

president.
In addition to close
association
with top corporate officials there
is the
further advantage to a man
in
the buying

department

of

Was Divided

a

unique.
wrote

but

In

1954

the

certainly

first

country since
obligations of

when

offering

before
a

we

^U!j

«na

the

given

to

a

us

for

j

$529,820,115

depreciation

424,949,262

415,841,463

Wages, salaries, and retirement
.

81,603,904

78,140,404

Taxes

.

22,627,861

21,144,651

Net earnings

.

816,817,466

14,693,597

benefits

months

had

which

to

was

largely in French

*n addition to the
?'• we were shown

v°?

set aside for

of

comPletely from scratch
material

.

.$545,998,493

.

.

this

registra¬

we

•

from others, and amounts

govern-

two

Belgium working on
tion
statement which

not

War

European

almost
in

1958

Goods and services purchased

under¬

in

the

products and services

Last Year

good deal of travel.
Again my own
experience in this
regard has been

fascinating

1959
Received from the sale of

............

Dividends paid

.

7,999,006

7,956,207

Earnings in excess of dividends....

.

8,818,460

6,737,390

to

work inaround a

Net

gpod bit of the country and were
yery elaborate and impres-

3.M
»

2H

$6.77

$5.94

9.75

earnings-per dollar of sales....

925

'

feiven
e

_

dinners

lance

and

by
the

the

Minister

evpr

thf y ,chair>
me

numerous wines and
elaborite
cuisine
which
is

al of

Belgium.




I might add,

share of common stock

I7TTT

Governor of the

Rational Bank and so forth. The
vnnne? ,™enr the sort ^at inhyeried footmen behind
p

-per

of

.

Taxes per share
For

raw

materials,
services

76.60

To

For taxes

employees

4"|f

14.90

To

For future

stockholders development
1.50
1.60

For

wear

and tear

of common stock

.

.

.

106,802,704

95,573,735

Land, buildings, and equipment....

.

Working Capital

.

87,636,434

78,898,053

Stockholders' equity

.

154,098,003

143,055,469

1.30
^•

■

M

•■!

22

(534)

The Commercial and Financial Chronicle

Continued from page
K

21

Principal Problems
One

of

syndicate,

a

Careev Opportunities Beckon
In the Securities Business

clientele.

a

in

opinion,

my

than

more

worth it.

far

tangible benefits are

as

situation

the

the

'of

Success

career.

a

cUe^tele7^^! salesma^oTsound

olne the critical attitude ot an
analyst, the persuasive manner of

through the recommendations
his satisfied clients.

a salesman, and the bedside manA
salesman
ner of a country doctor. The rienCe he mav be

basic-function of a salesman is to
aid his clients by giving them

firm

for

sound^ounsel on their.mvestoient
P
V

tual

has

time

some

significantly

were

lower than those offered by indus-

try have shown a distinct upward
tendency lately. They are probably still somewhat lower than
what
our

available

is

glamorous

more

"but

certain

in

ciderations enable

con-

the

to meet

us

competition

for able and attractive young men at every turn,
Certainly the early assumption of
definite
responsibility
and
the
other advantages I have discussed

vfpHpt^thff1 salaries
bel
that cifiarii?

we

at

ncrease

eve

faster

a

rate

than

in

years

have

in

our

business

but

of

for

of

outstanding
ability and strong motivation, particularly in the buying end of the
men

business.

Pmrmletpd
mPrPiv

by

nnrclioeinff

merely

purchasing

lib

nf

list

a

of

stocks. The securities must be
supervised and changed as economic trends in general and company developments in particular
The

man's

account

exists

the

popular

a

concep-

possibilities of untold

nently satisfying from
point of view.
The

investment

as

whole

a

service

.

yided into three parts,

study of

a

..

work of advising a corporation as
the best methods ot xsisin^ now

capital and of subsequently underwriting the new issue is de¬
cidedly creative, even though a
package of bonds

or

stock certifi¬

cates is not much to look at
end

product

From

of this

what

I've

clear that I'm

the

as

creativeness.

said

it

be

must

than enthusi¬

more

astic about buying department ex-

?ArtletViCaet T^m1
xact that I

nnw
now

am

end of

the

in

selling

firm has not in ; selling
the least

our

dampened that enthusiasm. There
Is

much

to

be

said

for

both

de-

fox^ investment, and consul-

By
!

New York

Today's

greatly

of

ments

eventual
count

are

strictly financial news,
few developments in any

affect

not

the

fortunes

companies

more

of

in

one

or

American

count

with intelligence.
He must learn
,
.
how to appraise the relative and
absolute

role

.

vestment

regarded

*.

to

a

unfolding
of

a

partner¬

sales

salesman

interesting
.f
,

_

field
as

a

behind
behind

the
the

seensecu-

account
cations

op¬

.

and

it

is

one

in the in-

nor»inri

Q

hmn

young
Digitized for man considering the
FRASER


be

any
se-

T£e

aQnual.

^rpator

voIume

o{

i3sues

new

offered for sale to the underwrit¬

individual

ers

Nevertheless, the qualifihmrilp

tn

necpssarv

A voune

_n1v

man

nanciai

interest

analysis

saies work.

in

combined

There

is

billion

a

the surge

war

began, in 1950 the volume rose to
$3V2
billion,
by
1953
it
had

jumped to $51/2 billion, in 1954

as

a result of all the Turnpike Construction and financing the total
hit a then almost unbelievable $7
billion, 1955 and 1956 dropped

fi-

with

concrete

no

$1

over

level, but after the

f

salesman if he feels

a

sincere

a

little

a

During the war years 1942it fell somewhat below this

3-4-5

basicallv the

are

was

year.

pithpr

the securities field with thoughts

rewarding

bonds, preferred

does

not

trainee

1948

industrial

tised

concern,

acumen

one's

capital.

is

own

limit

no

of

the

to

to

build

earning
Since

tisers

up

ness

n]ir

an
an

alert
alert

and
and

not
HUt

is
lO

imaginative

to

the

information,

be

the

of

merger

such

the

financing,

4-1-*^^

or
per-

The

to

high

average

men

in

now

job of

should

a

sales-

have real

of companies with

IN

view

a

the most attractive
appropriate investments for

and

a

t i

n

the

g

formed by economic

of

elderly widow

who lives

on

her income from

This job is accomplished
by a proper analysis of the cus¬
tomer's needs, supplemented

the

by a
salesmanship to
by

interpretation

of

an

the

facts. Careful research and
analy-

fjf™",1 only P™duca income
the salesman
his firm if
able

to

convince

for

he

his

clients

is
or

prospective clients of the merit of
the

advice.

life

a

and

the

investment

purchases
of
casualty companies

losses
purchases,

bond

savings banks increase divi¬
or

have

heavy
buying

insurance

A

But

not

Cautious

before

market

our

In

ing

educational

before

is

work

individual

an

lot

a

required

becomes

a

customer.

The industry's

yardstick, which
gauges the price level of the mar¬
ket, is the Bond Buyer's 20-Bond
Index.
In January of 1957 this
Index
stood
at
a
3.23%
yield
level; in July 1957 it was 3.40%;
in January 1958 2.97%; in July
1958 3.05%; in January, 1959, it was
3.40% and recently it was at a
whopping 3.81%. Tax-exemption
is at an all time high in value and
affords a wonderful opportunity
investor and for the alert

for the

are

^11. Tax-switches

as

P°ss;?'e'pa„

can be altered, portioi

he

s

up-graded or aow:n-g^aaea.
y
number of combinations a ep-

sible under such unusual ma xei

c0"°"10"®'lras+n1'

-Career

topic,

Opportunities in Municipal Secu¬
rities." I have briefly touched on
some
of the
major ingredients,
basic to our business.
Lump all
together and you have in
opinion the greatest oppor¬
tunity today in the investment
field.
More and more institutions
these
my

More and more

income.

managers are
of
—

tax-exempt
portfolio
finding the number
too numerous to fol-r-—-

individuals need

and

issues

new

,

■

must

and

and mus

low an(* s^u.c^y
rely on
*deas 0* a

srt and ex-

Perienced salesmen

So for the

~

*—,o willing to
trainee who is Wnii

'pt

work to

background of the

thorough

a

cur"

'"^^rketConditions, the results
^ ™ar«®^°n^°rd'lng in the
^%dpd™af

iob well done

a

knowledge oi a
1X0111

™C1

and

financial standpoint as

a

well.

By WALTER P.

you

a

of research

Research Department, com¬

reporter-analysts to the
man—the "Decision
Maker," are outlined by Mr. Stern

prising

top research
who
that

I

avers,

make

is

ceeds in research career, or uses

the training in
man

or

institutions

above

we

What
mu¬

Research

men

the term is
conjurs

up

a

also

we

determine that

an

think
Research
of a little
sitting on
with a

man

stool

green eyeshade
and a
ten

c o

1 umn

sheet
spread in
work

have
se¬

in-

image
a

men-'

an

called

I

misnomer.

an¬

percentage figure at
the top. Then follow the tax-exempt yield down the left hand

used to be

although

"statisticians"

front

of him.

Unfortu¬

he
when
speaks so

nately,
stutters
he

that

placed

the

side and

becoming a sales¬

in other areas.

mentioned

is broadened

the

This, he

money.

whether one suc¬

so

,

to

the area

that this is

finds
can

equivalent table which
have will show what I mean,

Notice
.

STERN

Manager, Research Department,
Burnham & Co.

probably
the
greatest undeveloped market for
municipal bonds in our country
today and offers a great potential
to our industry.
A look at the

field."

to serve his apprenticeship
gain a thorough understanding of the fundamentals nf

of

me

doorbells must be rung and
of

tax-ex¬

individuals who buy municipal
curities.
This
is

long felt that the munici-

and

accuse

painting with too broad a brush
let me hasten to explain that re¬
sults
don't
come
easily.
Many-

'

addition

tioned

bal¬

pal bond field offers countless opportunities to the young man will-

Reminder

you

taxable
I have

the exist-

of

aware

deposit

companies.

other notch.

"greatest opportunity today
in

of tax-free securities,

substantially their Federal taxes.
they turn to tax-free securities,

cautious reminder of
on

are

ence

So

this

in

their

nicipals?
The recent passage of
legislation
has
increased
quite

adds up, in his opinion, to

ance

persuade the customer to take the
action which is dictated

intelligent

opportunities

the work entailed which

se¬

curities.

certain amount of

career

field with

m-

has increased their interest in

of the

learn the business. Mr.
Lipscomb
tempers his glowing description

Each customer will have
different investment problem.
young
married
businessman
with a good income needs differ¬
ent advice than an

demand

losses, they stop
empts.
But earlier

ipal bond field attractively invit¬
ing to those willing and able to

a

num¬

country

who

heavy underwriting

dends

top factors that makes the munic-

A

loan

decrease

when

and secunty

the

off

they

W. H. Morton & Co., Inc.
one

this

in

suffer

Vice-President,
as

companies. Unfortunately,
are not buy-

bonds, when

By CHARLES S. LIPSCOMB

Growth is listed

great

a

in

The "ins" and "outs"

taper

MUNICIPAL

opinions

analytical

and

creases, commercial banks usually

SECURITIES

selecting

coupons

When

CAREER OPPORTUNITIES

wide

business

are

investors

bonds at the same time, otherwise our job would be greatly
simplified.

company attraction for the college graduate
or to the reappraisal of the merits with an in teres* in tho investment
the merits with an interest in the
of a eomnanv whirh has nn+ been fieiri
company which has not been field,
analyzed recently.
It is the job
a

of

ber

all these institutions

to'th<; study of a new
to the reannraisal nf

the stocks of

our

maturity of the bonds,

surance

or

over

of

*

the

These

advantages and possibilities

constantly

distribu-

into nlav the
e

of.

of

to make the

be

of

of

levels

business.

serve

salesman to

asnect

the

age

the

which

iob

bHn°

rhal-

most

of

many

one

of

departments, corporations, casu¬
alty companies, municipal pension
funds, and more recently life in¬

beginning. A certain
part of each day will be devoted

man

the

because

field

lieve that there

banks, commercial banks, trust-OR A

,

Finally, there is a real need and
opportunity for young men in the
investment

thp

re-

in

So much for

the

interesting

we

the

adver-

don't

an

taxable.
The 90%
bracket earners buying a 4.00%
basis tax-exempt would have to
realize a 40% yield in a taxable
investment. Thus only a little imagination is needed to picture the
scope
of this untapped market,
particularly if you can also be¬

oiSf to/'fnsuSnsf^avh^ RESEARCH AS AGROUND
CAREER
TRAINING

i--—

^

expoieif him

job
su??? possibilities.

trade

the ratings and the
the changes in tax
,
• who buys the ever increasjng billions of dollars of tax-exempt securities which we have
just been discussing?

account

companies while
regular duties.

op-

distribution

for

variables

as

prices,
jces,

key individual in

forming his

Nnw

Here

many

unusual LUX
UUUSUdl
for

imacrinQtivn

man

figures

and

industry-

t^n'

a partner in lus firm.
it
jl C

our

firms engaged

the

jPngin<*and

proper-

In addition
uuu1uuu|

in

about 625

are

these

and
all

cyrriwtb

tionate to the time chiu
w
tuc
umc
and enagy lie
energy he
himself applies to the job.
The
more successful salesman
is often
ill

job

potential

429 firms adver-

municipai securities

sales-

is essentially in his own busihis income should be

man

greater

the

offerings

underwriting

power

a

their

flert

Further, there

the

individual.

In

today there

the

vestment

hence

publication called the "Blue List,"

advantage which is inherent
job
is
the
opportunity
through the development of in-

in

it is merely

the

organized and most municidepartments have been
for

'be average
One

firms have

more

bond

p0rtunities

fact

of

in volume

expanded

or common

In

been

pal

refVch nat»e"of""this

end.

Along with this tremendous increase

an account man is in his

the opportunities in the securities
field can exceed those found in

After completion of such
training program the process of

education

of
es-

Despite the initial difficulties of
starting a career, in the long run

stocks.
a

true

business.

own

experience in the approach to appraising the worth of a security,
be it

is

4.00 basis is equal to

a

yield

lEOT^nd salesman

billion,

$5%

jand
the ~ authorities are churning out bonds
clientele is dif- at the $8 billion rate.

starting any new business and

sentially

'to

financially

vtoLmrt

ir»

F th^

deDartoinpnt

or

,

should

challenge for

in

average

type of customer

business is well advised to spend

ac¬

even

information

^tail tjlan the

clients.

portunities in the investment field.
of the most

values

rity of a particular company selling at a particular price. A graduate entering the investment

ac¬

nity to build up one's own
capital, and to provide other key

The

reauire

.

an

described by an expert
in the subject. Mr. Ruane does
not ignore the inherent
opportu¬

Another way of expressing this
growth factor is to examin! the

ap-

institutional accounts are, by na- From 1921 through 1941 the anture, professional buyers who nual volume of municipal bonds

analysis into a sound and profit¬
able investment
program for his

are

services, in

to service his customers

man

institutional

to

man

leaped to $57 billion.

re-

task of building a
ficult.
However, this

There

the

(from

ysalegman.

the.

8.00%

was $16 billion,

abreast of

and

rewards

of

*1

Qf

h

Thursday, August 6, 1959

.

bracket

the total amount

in 1955 the
volume had swelled to $43 billion
and bV the end of 1958 it had

"ig

bv his

accounb3

merchan-

are

1958 were back to $7 billion, and
this year the municipalities and

1

added require-

salesman

a

counts, and

ship)

City

asltened

we

.

of tax-exempt securities outstand-

exne-

Handling these large accounts
quires a sIightlys dif£erent

his clients' money in the
light of
the existing economic conditions.
A great deal of satisfaction
is
found by the salesman in trans-

Sales Department,
Kidder, Peabody & Co.,

makes

always dealing in intangibles. The
early few years are often not too

to

WILLIAM J. RUANE

that

a study of developments in the
political, economic, and scientific
fields is as
important as being

range

SECURITIES SALESMAN

Inviting

factor

away

culling

OPPORTUNITIES AS A

It

product'tosell'orVroduceT'onVis

,

^rfmpnfe:

partments.

biggest

product which
dising. In 1946

of

companies

has

•x

busi¬
admittedly a
however,
the

.

.

emi¬

creative

banking
is

industry;

.

a

develons

tbe

iundS)

U

of the buying department is

Service

r*e 1curr*;nt neys, a,s. V y of have of becoming
PaT~
ticular companies which may
merit

for the customers'
man,
business.
Security
analysis,
in
especially in periods of great ac- part, requires the interpretation
tivity in the stock market such as of ordinary news and its applicawe have seen in the last couple of
tion to individual companies.
years.
In my opinion, however,
Then and New
the prospects for achieving a fair
Anen ana ^ow
measure of material opulence are
The day is gone when the "well
as good in the buying end of our
connected" young man could enter
business as they are in the selling Wall Street with no knowledge of
end. I must qualify that by saying
a
balance sheet or an income
that whereas a man in the buying
statement and immediately prodepartment may not attain the ceed to make a substantial income
came peaks of income as his assoon his connections.
Today a pe-11.—
U
ciate in the selling end, he prob¬ riod of training in the use of the
ably won't achieve the valleys analytical tools of research is nec¬
either. At the same time, the work
essary to prepare the future ac¬

ness

to

™

b

di-

is

day

wealth

xu.

The

£*rfeot customer are basically the

would seem to dictate.

of the foregoing fields which will

,

>

of

.

entering the securities
there is still plenty

young men

tion

^"osethe,needs of portfo o of
the clients
and develop,asuitablei

tation with present and prospective clients.

seen

business

There

t

others.
Recent
more and more

many

room

.i

th

of

industries,

feel that various other

we

f

npp(1„

,

.

Makes

Growth

to the hard judgment isbuilt up to a Targe our business so inviting is Growth.
who can com- degree Vjy radiation, that is That is growth in volume of the

in the buying departimproved considerably
in recent years. Starting salaries
in the securities business, which
young man

ment

and

go

working individual

^

As

concerned

as

in the job will

'

.

Remuneration

curities field

sales

and

tion.

developing leads which his firm
will give him. Once a nucleus of

;

Is,

trading

there can be a large degree of
overlap among these departments,
Since my personal activities are
primarily concerned with sales my
Initially it is done by remarks will deal with this func-

the

principal problems
young man faces when entering
the securities field in the position
of account man is that of building

"

.

the

where
Walter

he is
off in
back
he will

P. Stern

not h a v e to

the dividual in the 30% bracket h»v
«
talk to any"
Our industry is denartm^foi
i1!? a municipal bond vielHincr o ?
,owever,statistics —
ized into roughly three dlvlslons:
ttUee divis?n
■ ?
yieldbasis has taxable equivalent fustics than perhaps prove iUusof 5.71%.
i„
the
nJ fSfa^h alone do not best any50% thing. This is
business.
.

,

,

there is more to
in fact,

Number 5870

190

Volume

ness.

the fact that one can
perfect statistical correla¬
tion between the
consumption of
whisky and the
pay of school¬
teachers in the U. S. A statistician
would tell you that this proves
by

trated

of two

nne

teachers

recommendations

on

Horizon Land

in

of

securities

buy

knowledge of securities and

se¬

is

curities' values is invaluable back¬

ground

for

practically

$15,000 up to perhaps $75-100,000
a year)
be it a lucrative partner¬

used in connection with the

a

spend anywhere

week to three years

in Re¬
training for other ends

search

as

of

business—be it sales,

ing, syndicate

explain

Research is to describe briefly
some of
the duties a Research

Department mayperform.
This
can probably
best be illustrated
by a brief description of how we
operate at Burnham and Company
—a medium-sized diversified bro¬
kerage-investment banking firm
where we
have a larger-than-

useful

analogy

an

ment
one

•he

the

himself

doctor

self

hands

better

ity,

have

associates pleading

with his

lack
like vein,
seeks financial advice,

knowledge.

In

terests in

a

a

N. Y.
conducting a se¬

SCHODACK,

be

East

offices on

from

business

curities

Schodack Road.

acqui¬

in

Arizona

and

for

general

presently owns in¬

the Tucson, Arizona

Equities

ments

has been formed
West 111th St.

securities business.
Watkins is a principal.

in

to engage

Retire¬

Calif.

with offices at 4843

Richard J.

area.

Equities

Retirements
INGLEWOOD,

number of parcels "Of

real estate, in

who 'direct
his

following

individual

a

to him in return for

business

consult

to

will

estate

The company

salesman—either drawing a large

analyze the ill¬

can

C. W. Daniels Opens
EAST

working capital.

a competent author¬
usually succeed as a

can

issue

the

of

elsewhere

and

invest-* partment. The good analyst, who
When in addition can sell (himself or

the

in

than

rather

oij

offering was over¬

real

of

sition

doctor.

and prescribe the eure him¬

ness

of

the

draw

to

515

at

C. W. Daniels is

Proceeds

to the doctor for advice, securities) as

goes

feels

if

between
and

man

here

Co., Inc. This

ship,; a high salary, or other re¬
sponsibilities such as running a
fund or heading a Research De¬

buy¬
other phase.

or some

is

office

York Stock
Exchange firm of Ross, Lyon &
subscribed.

from

it

share was made

stock at $1 per

ap¬

usually command extremely high
compensation (we'll say as a guess

Streeter to

the

(as

has

Hanly

August 3 by the New
Maker

for the prospective

common

Wall

&

offering of 300,000 shares of under the management of Joseph
Horizon
Land
Corp.
common Rowan.

•

,

Decision

J.—Edwards
opened a branch
Millburn Avenue

SHORT HILLS, N.

An

posed to the analyst-reporter) can

•quite

think

or

It is

niche in Wall Street.

every

needed.
The

and

any

to

23

Edwards, Hanly Branch

Corp.

Stock Oversubscribed

the

a

school
when

I

the best way to

used

be

pricing of an underwriting—any
place where a competent decision

Department Do?,
Perhaps

a

may

which

Research

a

at

This

deciding

values) is
responsible

and

timing
arrive

to

decision.

Taking first, Research training
a
jumping-off point for other
phases of the securities business,

they spend
it all on whisky!
You can draw
n whatever conclusion you want.
But the moral is clear — there is
more to research than statistics.
What Does

of

sense

able

a very

■

as

get paid more

teachers

impor¬

more

be and often is

can

lucrative field in itself.

things—either people

get drunk to vote
more money or

to

have

Secondly, and

tant, it

a

.how

(535)

The Commercial and Financial Chronicle

.

advice, or more likely, in today's
financial community, as
an in¬

stitutional salesman. Today with
when one
(two
partners
and ten the investment advisor, account institutions assuming an ever-in¬
executive or financial consultant creasing
role in the securities
analysts) Research Department.
should be equipped to prescribe a markets, there are growing op¬
The main job of, our Research
cure himself rather than have to
portunities for research men —
Department is to keep a close
fall back on his research depart¬ particularly
industry
specialists
watch on all news developments
ment.
A
knowledge of security or experts—to attract an institu¬
that affect or may affect securi¬
analysis is essential background tional following, which can lead
ties; this may range from the Mid¬
for virtually every phase of the to
very
lucrative
institutional
dle Eastern and German political
business—it is probably wise for commission business. Institutional
crises to the development of new
investors are sophisticated. They
products such as the recently in¬ anyone embarking on a serious
career
in Wall Street to have a prefer talking to a research expert
troduced stretch paper (by Clupak,
sound grounding in Research rather than the average run-ofInc.) or methods lor synthesizing
the mill salesman., As the instifundamentals.

usual

Bristol-Beecham),

by

penicillin,

tions

Pyroceram
(by Corning Glass).
In following these developments

read

and

to

subscribe

we

Research

care¬

Career in Itself

a

in

grow

importance

THOSE GOLDEN EGGS!

search

Turning to Research as a career

corporate

thing

their own level
should also become of increasing

talk

them

to

on

business and in¬ in itself, there are many avenues
dustrial publications
and news¬ that can be pursued —■ although
importance. Research-salesmen as
papers as well as several financial progress and financial reward re¬
a
group,
are becoming some of
services.
We conduct
field in¬ sulting will depend very much on

fully dozens of

of many companies'
operations as well as checking
frequently with officials of these
companies.
vestigations

As

end-point

an

prepare

we

analyses of important develop¬
ments affecting various industries

for

and companies, some

periodicals,

ous

our

selection

wise

own

public distribution and some sim¬
ply for internal use within our
own firm. In addition, we perform
other duties such as answer¬

informa¬

only

tion available to him. I need

examples

two

to

the
Research

prove

a man, now

a very successful in¬
banking firm who has
often told various audiences how

partner of
vestment

walls

hallowed

the

left

he

of

teaching career)
less
than
$15,000
in his
ing inquiries and analyzing clients' with
portfolios, providing background pocket. Some years later, he told
information for our new business his accountant not to bother him
or
buying
department,
and/or with details when he passed his
some

Harvard

(and

a

,

helping

decisions

pricing

in

on

prospective underwritings.

ing

What

kind

into this

there

is

no

smoked

his

pipe;

the

We feel

career?

of

smoked

the

richer he

got. There

background that
man for research.

one

best qualifies
An

fits

and
longer he

individual

of

sort

Job

Research

a

example—one of the most

an

successful analysts I know

distin¬

are

such

had

for

capacity

off

far

a

holding
school

University of Arizona.
rather

a

ground,

successively

serving

intelligence
Army, then in
then into

back¬

diversified

an

as

the

in

officer
Street

man, then back
of the secret

agencies

sales¬

a

as

work

to

for

one

Wash¬

in

ington, then back to Wall Street
as

salesman

a

search
a

1

where

then

and
he

now

Re¬

to

heads

up

very successful

department.
More specifically, in hiring re¬
search
people at Burnham and
C o m
p a n y
we
look
for first,
brightness and/or innate ability

and

secondly,

aggressive

being

equal

someone

demic
m

we

with

a

top-notch

record—that

the

ini

and/or
Everything
would
prefer

initiative

thinking.

upper

is,

tenth, of

aca¬

preferably
his

class,

addition, we like either business
training and/or equivalent

school

business experience.
However, the
inain

prerequisite is

a

bright, alert

mind.

standard

the

who

and

a

Career in

financial

research work fit into

career in the securities business?

think

»hi°
ra

it

can

be

broken

down

First, research is probu

best background that

.J1 have to

go

one

into virtually any

her aspect
of the securities




busi¬

University,

nearly nothing

of the outstanding

become one

to

stories

success

on

Wall

search

is

either

as

useful

in

two

in Re¬
ways

—

for

ground

training

a

Hugh Johnson, who was Bernard
Baruch's satistician once said:
"If

careers,

break

to the

more

into three types: The great

majority
of research
men
are
reporter-analysts. Almost anyone
with a reasonably broad education
and/or

above

average

level

of

with training,
learn to gather the essential facts
on a company or industry, analyze
them, and present them in read¬
able form.
With a minimum of

intelligence,

can

the

supervision
here he stops

decision on a stock
or industry which is of value. His
salary of economic worth is prob¬
ably limited to say $8-10,000 (top)

an

a

opinion

beyond

Going
Research

man

in

a

this
—

is

the

the

top

experience.

Decision

He

uses

the

both for the public and for

repeal the partial tax relief that

to the tape at
day of the

opening of every

and never take it off until
night—if you can do that, and in
addition, have the cool nerves of
a
great gambler, the sixth sense
of the clairvoyant, and the cour¬

year,

Lion, you have a China¬
man's chance (of making money

age

of

in the

the whole
be the

I

think

it

for

likely result? In the Aug¬

ust issue of the exchange

Mag¬

and I think the

ment is the best

'20's

be

a

as

I

rich

"Hindsight

vs.

Foresight/'

a

revealing article in the ex¬

Magazine, gives the 32-

change

azine, G. Keith Funston,

Presi¬

York

Stock

record of 15 common stocks
which treated investors hand¬

and

somely—and the corresponding

of

dent

the

New

Exchange, takes a clear look
asks

candidly,

"Do We Want

America to Keep

Growing—or

Don't We?"

year

record of 15 others which

reap—or

Common share owners

Board" companies were

paid

rec¬

the first six

In "Dividend

All Time
High," the exchange Magazine
tells which group registered the
Payments Reach

biggest jump, and tables
"score" of all other groups.
Full

In the

weep!

Another timely

of "Big

the

article, "Stock

Sidelights," summarizes

Market

findings of two NYSE stud¬

the

ies made to determine the effect

of sudden

price changes on the

You'll

stock market's main trend.
find it

interesting reading,
*

*

the exchange

sold

Speed Ahead

treated

Read it and

poorly.

investors

Dividend Scoreboard

on

coupon

*

Magazine is not

newsstands.

Mail the

below for the next twelve-

churning wake of the out¬

issues, beginning with the Augus ';

America's recrea¬

number—and enjoy a full yeay

board motor,
tional boating

fleet has swelled

that—

from

Research Depart¬
place to do it.

2l/2 million craft, in 1949,

to its

present total of 7

is easier than

now

Maybe so—maybe not!

country? What would

a

market)."

I'd

man."

brought such excellent results

months of 1959.

ciple companies whose stocks are
on
the board as carefully as a
medical student studies anatomy

much about

as

the stock market in the
know today,

of

background
the market and all the prin¬

"If Ida"

"If Ida known

government. Will Congress now

ord dividends during

million.

of informative reading

stock market, new

about tha

development.J,

investing. All for only $1.50.

Cantor, Fitzgerald & Co.

Opens New York Office
Fitzgerald & Co., Inc.
has opened a branch office at 170
Broadway, New York City, under
the management of Seymour B.
Goldfeld. The firm's main office
Cantor,

is

TB-15
the exchange

Magazine, Dept. 7

11 Wall Street,

New York 5, N.Y.

Enclosed is
Please send

me

$1.50

(cheek, cash,

money

order).

the next 12 issues of the exchange

Magazine.

in Beverly Hills, Calif.

Now With Van Hoozer Co.

NAME_

(Special to The Financial Chronicle)

KANSAS City,

re¬

analysis of others
(plus his own work) and drawing
on wide personal experience with
industry and the market (and a
and

pened afterwards was good
news,

Magazine.

What hap-

believe

prominent analyst). The Decision
Maker's great asset is competent
judgment
based
on
knowledge
porting

the rest.

on

he
was
recent article by a

I

(as

and permitted a 4 per cent

the whole history and

or

year.

and

up

"The

reporter-analyst

produce a usable report. But
unless he can render

can

are ready and able to
everything else—to study

you

give

the first $50

come,

>'

Street.

Wall

on

credit

career

a

rapid growth of this lusty

industry, under the title,

Play," in the current exchange

practically
any
and
all other
aspects of the business, or as a
career
in itself.
As a career it
offers
the
opportunity for the
analyst to put his own money to
work, because of the first-hand
information available to "him. Or
on
a
more mundane level, if the
Research
man
is good, he can
make a fair living from analystreporting work. Beyond this, if he
can
assume
the role of either a
"Decision Maker" or salesman he
has
the
opportunity of making
some of the "real big money" on

the

mundane
Wall Street Research men

Turning

of the

of dividend in¬

Summary

summarize,

To

—to glue your nose

Street.

termed

Securities

How does

from

started

Maker

Research

one-time prominent

a

Columbia

at

lecturer

family business,

a

Wall

He

Ben Graham, author
text on Security

as

Analysis and

the

be

can

pointed to as examples of research
leading to financial suc¬
cess,

law

a

tion, tells the fascinating story

Outboard Motor at Work and at

careers

ing
as

who

others

many

of

whisky at such

wisely

securities

picked

guished himself by his polo-play¬
and

merely

he

Research

in

much

spent

Having

pipe.

a

time

Prerequisites for

million. His method—smok¬

third

passed

of

Corpora¬

which eliminated income taxes

first-ranking money-makers
both
themselves and their
firms in Wall Street.

securities

of

because of the first hand

cite

In

be paid twice.

1954, Congress

one's

through

money

vari¬ point. One is
other

for

some

making

on

taxes have to

for

Perhaps the outstanding method
is

William C. Scott, President
The Outboard Marine

the

individual himself.

the

from
earnings are the only
which federal income

Those golden eggs that come

as

—

doing—the re¬
specialist who is able to

they are presently

M. Pinger
&

Mo.—Mrs. Alyce

ADDHESS.

is now with Van Hoozer

Co., Inc.,

1016 Baltimore. Mrs.

Pinger was previously with B.

Christopher

& Co.

C.

CITY.

—state

;

j

24

The Commercial and Financial Chronicle

(536)

Continued

from first

selling to net buying of

page

C

From

EATON & HOWARD

\n*e^;;dcot«8
c<°0.
netted.
stocks
;0(pe

landed

EDM

'nvestins
s

of

purchases
changed.

to

practically

was

the

rise

accompanied

■

in

by

attractive

bond

of

rates,
unusually

and

unusual

view.

Jyour Investment Dealer

or

lATON & HOWARD, Incorporated
> 24 Federal St., Boston 10, Mass.

a

was

by the fund managers
evinced in fixed interest ob¬

1990

and

1995.
their

took

FREE ON REQUEST
I

Incorporated

!

Investors

jj-

ESTABLISHED

|

A mutual fund investing in

|

list of securities selected

|
|

possible long-term growth of

I

a

for

capital and income.

U. S. & Foreign
holdings/ in U. S.

I
I

Income Fund

I
I

Bills, in the
$7,256,881.
Lehman
Corporation increased its holdings
of
Governments
to
$20,400,000
from
$15,200,000,
entirely
via
purchases of Treasury Bills and
Certificates.
Wellington
Fund
during the quarter took on $10

A mutual fund

investing in

of securities

a

for current

fund is available from
your

1
I
I

each

on

investment dealer.

200

Berkeley Street

of

4%

Notes due

Boston, Mass.

Certificate

Royal

Dutch, a long-time
previous
periods,
switched over into the net selling
category.
American
Telephone
supplanted Standard Oil of Jersey
as the most heavily sold
issue, fol¬
lowed by Boeing Airplane, Ameri¬
can
Can, and Gulf Oil. (For de¬

of

tails

its

stocks, profit-taking

were

in

see

Table

our

"Changes in
Common Stock Holdings" on p. 25.

portfolio in
proceeds of common

the

shifted

such

their

MANAGEMENTS

the

a

reduced

other hand,

of

Street

U.

S.

during the
reduced

its

Governments

likewise

relatively

Governments

followed

newly

by

formed

June

on

moment

is

a

aggressive approach
market

involving

search for
.

.

."

an

selected

common

for

of

an

stock

increasing

Fund

the

June

switched

from net

of

waranted
In

a

at

this

Rubin,

Presi¬

entire popu¬

170,000,000

annually

—

These people
spend

Tri-Continental

for

future

that

we

Investment Fund, Affili¬
Fund, Bullock Fund, Chemi¬
Fund, Fidelity Fund, Funda¬
mental
Investors, Incorporated In¬
vestors, Investment Co. of Amer¬
ica,
Lazard
Fund,
M.I.T., Na¬
tional

Investors, the United Funds,
Carriers & General. U. S. and
Foreign forsook its long-standing
and

policy confined to liquidations, in
now adding to its
portfolio Amer¬
ican
and

CONTINGENT
Among the managements call¬
ing attention to the unfavorable
ratio

our

strong but changing
we

selective

again

be

informed

market

care

where

Investing

switched

also

further

dent

because

of

substantial

a

in

is

instalment

incidentally which
effectively restricted by

not

monetary

policy.

vaunted

Half-Trillion

Economy

will

be

a

The

well

age,

is

Trust

of

permitted to

exercised

this

use

Boston,
lever¬

privilege

Neuberger,

statements
Line

are

voiced

management.
Presi¬
Bernard notes that

Arnold

stocks has diminished in the

past quarter, and the percentage
invested in bonds and preferred
stocks

has

risen.

"This
policy"
virtually required
by
the
discrepancy
in
yields
that exist today between stocks

he,

says

and

be

"is

senior

added

securities.

that

in

It

might

the

opinion
Managers, the
real
bargain spot in the bond market
today is in the medium grade
bonds."
Commenting
on
the
Value Line Fund, Mr. Bernhard
of

the

notes.

"After

correction

the

stock

market

in

1957, which wiped
out about 22% of the values of the

leading
Value

bonds

for

market
Line

into

the first time since the latter
part

Fund

stocks.

averages,
switched
Now

Continued

on

that

page

profit possibilities.

ONE
Mutual Investment Funds

Vlit

WSLLBAPfl

Equity

JFuwL

O Bond Series

investing pri¬

marily in

common stocks
selected for possible
longterm growth of
capital and

9 Balanced Series

FUND

future income.

Preferred Stock Series

inc.

• Income Series

Ask your investment dealer
for
or write to

prospectus

an

The

Wellington Company
Philadelphia 3, Pa.
Check

one

CP

investing in the securities of
trial

8 "Wellington Fund Fund
Wellington Equity
Name
.

0 Stock Series

open-end management investment company
I

current

on

long-term capital growth

..

..

#
.

Growth Stocks Series
'

Information Folder and Prospectus

Prospectus

CITY

on

request WILLIAM

STREET

One Wiiliam
i.

......

income.

address

t ,* \

Dividend Series

American business and indus¬

enterprise with emphasis

possibilities and

fy




SALES,

■

on

Ne!w

NATIONAL SECURITIES & RESEARCH CORPORATION

INC.

York 4-,

:K

Request

Established 1930

Street,

N. Y.

120

the

by the

percentage
of
the
Income
capital invested in com¬

mon

Dollar

reality

R.

Fund's

Corpo¬

from

increase

expressed

as

Roy

Particularly forthright
Value

only

credit—an item

and

Mutual

term.

cause

and

policy,

bearish

good

of increasing incomes and
rising population and employment,

stock

Guardian

same

time, its port¬
by its
is
geared to confidence over the long
folio

the
Street

ration

present

is

At the

President

econ¬

brings

yields

Fund.

should
expect
only
rises in values. It will
a

between

bond

be

expect that the market could re¬
soon its recent generous gift
to all stockholders. On the basis

omy,

Viscose, International Nickel,
Weyerhaeuser Timber.

THE DEFENSIVE

peat
of

Howard Bal¬

cal

cannot

we

a

Mutual

the economy and its

prosperity, but

by

ated

the

can

•

com¬

Fund, Eaton & Howard
Fund, General Investors
Trust, Massachusetts Life Fund,

group,

appear
on

year."

anced

.

would

a

Investing, Eaton &

John W.
Harriman, economist, says: "The
now
firmly established upward

optimistic

$1,125,000,000

Stock

time."

prepared

survey

Investment

and

our

Funds whose purchases of
stocks exceeded sales

dent of Selected American Shares:

which

The

7,000,000 people—

mon

investment."

P.

within another 12 months."

in¬

-many

substantial margin included
AxeHoughton Fund "B," Broad Street

for

Edward

general
quarter

in

stocks

income

.

undervalued situations

During

Madison

the

to

.

the

at

selected for conservation of
and in

30.

continuation

the
and

38.5%

philosophy

$19y2 million to $13 million;
in

to

Management

bonds and preferred stocks

come

lation

net

State

likely

of

Our

It

over

out of 24 in

visit Florida.

high

in

reduction

being

current

Securities:

1

or

more

climate

Says

Wall

BULLISH

seems

value

figures

stated that

to the conclu¬

us

the

securities.

based, in

and

oil
Treasury issues
and
Typical of a constructive atti¬ natural
current income,
gas holdings to General
tude
was
this
statement
by Motors and Philips'
increase of $12
Lamp. Said its
million in such holdings. This pol¬ Edward A. Merkle, President of economic
consultant, John Lintner:
Madison Fund: "Defensive
items, "Consumer incomes will continue
icy, we are informed, has been
which accounted for 50.7% of our
intensified
to
during
the
current
rise, and consumer expendi¬
portfolio on Dec. 31, 1958, were tures will
third quarter.
continue to increase be¬
with

from

principal and

is

Anderson,

Group

of

R.

enhance

optimism
part, on some facts
just released by the
Florida Chamber of
Commerce.

age,
more

results."

short-term

holdings

Investing

due

February,
Wellington's
re¬

Thus,

arrangement
which

On

FUND

during the fourth

the

was

favorite

1969, and $10 million of the

quarter

A BALANCED

to

Florida

nomic

"It

Febru¬

million of the 4% Bond due Octo¬

resulted

L.

our

of

about

of

Runner-up

time

of $55 million of Notes due
within the next six
months, $5

into

Tite Parker Corporation

earnings

a

the

much

President

dynamic phase
of the present business
cycle is
ahead, providing an excellent eco¬

avail¬

1958, the number of
sellers exactly offset the buyers.

1962, and $3 million of 4%
Notes due in May, 1963. Partially
offsetting these acquisitions were

1990.

A prospectus

of

is

of

38-43

range

quarter

ary,

31/2%

I

Maybe

reflect

in popularity this
also-cyclical Gen¬
movement
of
the
cycle
seems
eral
Motors,
with
15
buyers
destined to continue without im¬
against five sellers. Also attract¬
portant interruption through 1960
million of 3x/2% Treasury Bonds ing substantial net
buying were
due in 1990 and $5 million of the Jones &
^ It
seems improbable that
Laughlin, Aluminium
4% Bond due in 1969, along with Ltd., U. S. Steel, American Viscose, tight money will cause in the
near future a reversal in
the following short-term issues:
business
Pittsburgh Plate Glass, Republic
$40 million of 33/4% Certificates Steel and—mostly via the exer¬ and stock prices."
of February, 1960, $12 million 4% cise of
Typifying the plea for selectiv¬
rights—Florida Power and
ity is this conclusion voiced by
Certificates
of
May,
1960, and Virginia Electric & Power.
Milan D. Popovic, President of
added $2 million to its holding of
Blue
4% Notes due August, 1961, $10
Ridge Mutual Fund, Inc.:
Unpopular Issues

ber,

income.

I

the

45-50

a

sales
list

in

Bateman,

will continue to grow in
size and
profits and the expected increase
in sales and

"With important further upward
price range, it
was
decisively liquidated, with progress in business and earnings
still the strongest
probablity, your
seven managements selling 95,400
shares against three managements management believes a confident,
even if selective and
watchful, in¬
buying 29,100 shares. And when
vestment policy continues to be
the issue was still submerged in

of

million

Incorporated

there

sion that the

.

1925

wonders

"Our work leads

of 57-to-75, Ford
no
less than 23

was

believe.
facts

Herbert

President

quarter, during

while the issue

1958,

able

Treasury

on

by

B.

Florida Growth Fund, Inc.:
"It is
our belief that
Florida companies

Cassandras

acceptance

that

From

only one seller. On the other
hand, during the second quarter of

Treasury Bills. The agile Dreyfus

amount

range

bought

Frank

out¬

as

common

This bit of optimism
comes from

sum¬

to come, and a sublime confidence
in the future."

even

with

Fund managers for the first time

EITHER PROSPECTUS

the last

belief

to

us

mechanical
a

managements (including 8 newly),

ligations. Short-term Federal
Home
Loan,
Fanny
Mae,
and
Treasury Certificates were bought
by George Putnam; with a dis¬
posal of Treasury Bonds due in
doubled

In

market

activity

Prospectuses available from

that

demonstrate

seem

unrelated

deep-seated

expert investment managers do
not always embrace the long-term

relative

yields,

to

like

their

glas, Florida Power & Light,
along
with some
leading German stocks!

while
a

to

portfolio, of among others
Lorillard, Owens-Corning Fiber-

blithely

way,

certain

as

would

these

was

dnd

c°hie.

absolute

level

not

may

landish

ISSUES

seem

and

their

addition

stock

holiday despite the Berlin
crisis, the stock market at the 660

Motor, as in the preceding
quarter, carried off "the honors"
as
the most widely and heavily
bought individual stock. The funds'
activities in this "cyclical" issue

un¬

the

time when

others flock to Europe for

Ford

money

the

another
on

1959

by

mer

level

Enlarged Interest in Bonds
With

oteerily
c°mmn

One

and Lazard Fund.

Street

THE FAVORITE STOCK

tively. This decline resulted from
the
fact
that
liquidation
was
stepped up 11.6% during the June
quarter, while the dollar volume

_P°saVaod
ottOtfP*

gto

seie

William

clined to $124.6 million from $165.5
million and $242.1 million, respec¬

a(1d
,

inventory-building

equity

of

this cheer¬

a

6

borrowing from Boston
banks; this with the disposal
of
U. S. Treasury bills
provided for

.

people literally walk from one
jetliner which has just
crash-

As Bull Market Rolls On
panies under review, net buying
of portfolio common stocks
de¬

rv

Nelson

comes

ing observation: "At

continue

^

Linton

Delaware Fund

Funds Retain Caution

CONSIDER...

W.

Thursday, August

..

of 1956

common

stocks.

.

Broadway, New York 5, N. Y.

the
its

the

27

Volume

Number 5870

190

The Commercial and Financial Chronicle

. . .

(537)

-

,

Changes in Common Stock Holdings of 67 Investment Management Groups

Interested in possible

(April-June, 1959)
Issues in

which transactions by

more

than

one

management group occurred.

Issues which

more

LONG-TERM GROWTH?

managements sold than

italics. Numerals in parentheses indicate number' of managements making entirely new purchases or completely
eliminating the stock from their portfolios. (Purchases shown exclude shares received through stock splits, stock dividends,
spin-offs or mergers. Number of shares bought or sold prior to a stock split is expressed giving effect to the split.)

bought are in

-Bought-

—Bought—
No. of

Mgts.

4(2)

No. of

No. of

No. of

No. of

Mgts.

Mgts.

Shares

Shares

Agricultural Equipment
-

3(1)

Harvester.

2

5(1)

2(1)
6(3)
5(1)
None

Deere

None

2(1)

43,100

—

'

17,600

General

3(1)

15,000

3(2)

Otis Elevator

2

1

3(2)

48,000

35,000

4(2)

None

None

Marquardt Aircraft

2,300

1

Martin

None

None

North American Aviation

131,600

60,000

Boeing
Douglas

None

1

Lockheed.-

146,600

United

Aircraft

93,900

44,300

—

3(1)
8(4)

1

None

2(1)

.

None

5,300

—

19,700

2

53,900

3,200

8,319

3(1)
2
2(1)

4(1)

14,700
322,300

Chrysler

None

None

Ford

'4,000

1(1)

3(1)
15(4)

64,000
186,300
12,000
14,800

Fruehauf Trailer

2

2(2)
None

None

2

6,000

Briggs & Stratton

100

Dana

2,500

Electric Storage Battery

1,000

Kelsey-Hayes

11,200
4,000

None

None

Stewart-Warner

Clark

None
2,000
52,200
1,000
10,520

Wooldridge...

Thompson Ramo

11,100
1,000

Diamond

18,352

Dow Chemical

2

Equipment

...

—

2

None
1
2(1)

None

2(2)

2

2(1)

Bankers Trust

4(2)

30,500
23,600

Chemical Corn Exchange
Cont'l 111. Nat'l Bank & Trust..

2,000

First National Bank, Boston
First Nat'l City Bank of N. Y.__

2(1)
5

Kl)
2

2(1)
2(1)

31,000
4,000
30,000
19,725

None

1,000
25,600
3,000

Hanover Bank

5,000

Marine Midland

2,200

Koppers

Rohm &

800

2(2)

6(1)

now

ual

Pan American

2

31,740

3(3)

4,510
4,000

2(1)

65,700

5(4)

2,000

2(2)
2(1)
2(2)

oMtttectcfsube/fo

Coke

Pittston
Truax-Traer

Owens-Corning

ffjtauiance

KD

CfCoafiita/

^cm/tany, Trustee

Founded 1S18

Prospectus from

Glass

and

35,500

Bank

of Chicago

2,750

1
Trust

~

Morgan Guaranty Trust, which

29,760
12,500
see

4(2)
2(2)
3(2)
2(1)

Fiberglas

Owens-Illinois Glass

4,000

Pittsburgh Plate Glass__;

500

Can

—

Corning Glass Works..
Libbey-Owens-Ford Glass......

18,200

individ¬

an

for each investor

3(1)

Sulphur

and

trust account

your

23,000
59,300

900
65,800

or

MASSACHUSETTS LIFE FUND
DISTRIBUTORS
30

State Street, Boston

Mass.

9,

8(2)
2

4(2)

Drug Products
2

and

cipal in accordance with

2(1)

4,000
27,000

Kodak

Eastman

3,700

providing

for distribution of income and prin¬

1

IV

United Carbon

10,400

1

None

Chase Manhattan

"Later merged

Kl)

7,900
2,000

Union Carbide

American

None

Manufacturers

A balanced mutual fund

None

Tennessee Corp.

None

Life Fund

1

3

6,400

1(1)

Irving Trust

1(1)
1(1)

None

11,000

3(2)
1(1)
1(1)
1(1)

Security-First Nat'l Bk. of L. A.

1,000

None

Stauffer Chemical

1

4

1

None

None

Haas

3(1)
2

Spencer Chemical

9(5)

None

4(2)

4,000

None

20

Continental Can

9(2)

None

First National

4,000

———

79,500
11,700
9,700
91,600

2(2)
3(3)

National Bank of Detroit

None

Chemical

Coal

Morgan Guaranty Trust

None
1

7,000
15,500

Guaranty Trust5'5

2,500
4,911
14,000
37,000

6,000
40,700
1,600
25,500

Internat'l Minerals & Chemicals

32,500
10,700
6,000 r
34,900
12,400
2,400

1

None

Interchemical

3(1)

2(1)

53,000
9,500

Hooker Chemical

3

7(1)

3(1)
None

Olin Mathieson

None
1
1(1)

1(1)
None

None

97,000

3(2)

.State.

Investment Dealer

28,900

1

9,500

I

None

Containers

5(1)*

5(1)

None

I

Street.

City...

None

Banks

2(1)
KD

Alkali

(ADR)
Food, Machinery & Chemical
Freeport Sulphur

1,400

2

8(1)

Lilly (Eli)

20,500
14,425
12,800

Rexall Drug &

1

1,100
33,200
Chemical

Schering

5(1)

13,380
11,500

"B"

Merck

161,900

3(1)

Continued

on

2(1)

page

26

further below.

Beverages

2(1)

8,000

4(1)

16.900

Pepsi-Cola

2(1)

16,900

Coca-Cola

4(1)

13,000

Armstrong Cork

7,600

16,750

Bestwall

3,000

2(1)
1(1)

23,000

Celotex

None

None

Canada Dry

None

fjlo-Uon iJ'ttnd

None

None

i

None

22,900

..

3(1)

Building, Construction and Equipment
2

2(1)

Gypsum

Massachusetts Investors

Growth Stock Fund

Aii

open

end invest¬

ment company, concen¬

the securi¬
companies in
as
Oil,
Natural Gas, Atomic

trating
ties

on

of

industries such

M assachusetts Investors T

Energy, Electricity and
other activities related
to

the energy

No

fields.

Commission

or

Selling Charge of

Century Shares Trust

Any Kind
Offered

at

net

asset

value, redeemable at 99%

(remaining

Canada General Fund

tained

by

1%
the

being re¬
Fund).

SEND FOR FREE

LIMITED

PROSPECTUS...
A prospectus

Write to Dept. F

relating to the shares of any of these separate
be obtainedfrom authorized dealers or

investment funds may

vance, sanders a company
III DEVONSHIRE

Nationally

distributed through

901 Market

Street




Members
...

BOSTON
NEW

61
,

STREET

Distributor

RALPH E. SAMUEL.
At

115

investment dealers by

Deiaware Distributors. Inc.

YORK

Broadway

51

Name.,

1(1)

Farbwerke Hoechst

50,000
2,900
42,000

|
York

Please send Aberdeen Fund Prospectus.

Farbenfabriken Bayer (ADR)

22,000

3(1)

Carbon

Du Pont

17,200
125,500

2(2)

IS William Street, New

1

Columbian

10,000

2(1)

None
1,000

...

2(1)

1

1

5(3)

3(3)

1

1

1,500

Monsanto

26,400

Borg-Warner

300

American Potash & Chemical

40,000

Automotive Equipment

1

1

1

25,000
27,800

"Dept. CFC-65

2,600
4,000

6

7(1)
4(4)

dealer

today to:

MANAGEMENT CORP.
2

6

Ford of Canada

11,000

1(1)

American Agricultural Chemical
American Cyanamid

29,900

mail coupon

-DAVID L. BABSON-

4(1)

15,795

2

3

3

3

11,200

-

Chemical

None

White Motor

None

Allied

28,000
1,000

5(2)
2(1)
1

44,000

Trucks

Prospectus from your

1

2(2)

2,800

:

4,000

3(1)

4(1)
23(8)

General Motors

2(2)

Chemicals and Fertilizer

2

Automotive

Mack

8,624

Air Reduction

2,500

Airways—

United Air Lines

4,100

1

2(1)

1

None
3

Airlines

12,500

Gypsum

17. S. Gypsum

2

Pan American World

KD
2

or

National

3

None
17,800

Eastern

None

500

None
„■

7(2)

Braniff Airways

None

50,544

10,500
22,300

Minneapolis-Honeywell

1,900

;

3(1)

Royal Dutch Airlines.-:—

1,000
.'

Trane

12,800
6,550

American Airlines

KLM

17,400
2,000

Lead

None

2
4(2)

Airlines

2(1)

1

Cement

1

5,600
146,940
650

Aerojet-General

None

None

Yale & Towne

2(1)

National

16,300
3,500

6,500

General Dynamics

None

None

Portland

FUND

None

None

Johns-Manville

8,712

>

14,900

Curtiss-Wright

20,000

4

None

4

6(2)

37,700

Bendix Aviation

1,400
4,000
74,000
9,800
76,900

7,500

1

Flintkote

9,950

3

5(1)

International

27,600
34,000

ABERDEEN

Mgts.

Aircraft and Aircraft Equipment

1

-Sold-

No. of

Shares
_

5(2)

...look into

No. of

No. of
Shares

25

South LaSalle Street

Y.

o.

Stock

Exchange

Broadway, N. Y. 6
CO 7-8600

LOS

CHICAGO
izo

N.

zio

ANGELES

West Seventh Street

Wilmington 1, Delaware

J

m

The Commercial and Financial Chronicle

(538)

Continued

Joins Hutton Staff

i

(Special to The Financial

SANFRANCISCO, Calif
H. Moss has
joined the
staff of E. F. Hutton & Company,
Sheila

from

page

No. of

No. of

No. of

Mgts.

Shares

Shares

17,900

2
None
1
2

22,000
16,000

Smith, Kline & French
Upjohn

10,000

Warner-Lambert

None

Bristol-Myers

None

Mead Johnson

1

None

V__

1,400

—

American Home

5,000

None

Products—

4,600
3,200

2(1)

1,100

Parke, Davis
Pfizer (Chas.)

None

None

Vick Chemical

2,100
46,000
14,500
4,500

Norwich Pharmacal

2

Mgts.

81,000 ■
50,800
6,300

__

2

:,

,

'

5(1)"
• ■

'

5(1)3

;

2

4,000

Ampex

18,700

Consol.

7

66,900

v

1

2

,

8(2)
8(2)

1

6(3)
6(3)
None

Square D
Texas Instruments

•

Westinghouse Electric
International Tel. &

Tel

13,900
3,300

Ratheon Manufacturing
Sperry Rand

2

13,500

Sunbeam

¥ ;

,

1l

; r

300

1

1,500
6,000
1,500
8,375
1,000

1(1)
1(1)
1(1)
3
1
6(1)
2(1)
3(1)

3(1)

3(1)

-

..

•' 10,000
...

1

American Investment (I11.)_j:Beneficial Finance
C.I.T. Financial

68,000
50,600

4(1)
1

500

2(1)

2

16,800
27,179
4,600
1,252

1

300

2
2

None

13,300
50,000
15,000
6,000

Commercial Credit

Great Western Financial

625

Household Finance

33,000

Pacific Finance
Seaboard Finance

4,800

None

r_

Associates Investment

None

.

None

Smelting

St.

5

a.-;-:

1

5,290
9,100

Food
•

describes THE

3

8,500

4

6(3)

86,300

2V

1

15,100

2(1)
8(3*)

1(1)
1

2(1)
1

3,000

1

7,000

1

7,500

2

32,300
10,000

None

1 V'-'
2

Office

IBM

900

45,000

1(1)

1,600

2(1)

COMMON STOCK

Corn Products
Foremost Dairies
General Foods

FUND of

3

CROUP

1
2

32,000

1

Continental Baking

13,000
6,000
6,900
3,500
5,000

2

SECURITIES,

A mutual fund

investing for in¬

1(1)

through
mon

com¬

19,000
7,000

3,100

None

stocks

None

3,800

4,000

1

5,000

1

1

3(1) j

5,200

Standard Brands

2(2)

8,100

2

18,400

2(1)

Insurance—Fire & Casualty

their invest¬

2

quality.

6,900

2(1)

Mail this

30,000
4,200

2(1)

advertisement.

.1
Name

800

2(1)

7,500
9,500
None

5,180

—

1,887

_

4(2)

43,000

KD

130,000

Oil

3,200

Oil

11,200

3(1)

28,400

3

Shamrock

5

6,840

Shell

2

1,500

Signal Oil & Gas__

6

26,700

Standard

4

85,700

Sunray Mid-Continent Oil

2

550

8

3

3(1)

Texaco

1

1(1)
2(1)

8(1)

Oil
_

_

Oil

Oil
_

&

_

Gas.

None

6,300

__

—

1

16,500

3(2)

93,000

(California)
_

2(1)

None

_

23,980

_

63 Wall

GROUP,

2,000

INC.

Street, New York 5, N. Y. CFO

2(2)

500

1(1)

3,500

Union Oil of California

260

1

None

Amerada Petroleum
Anderson-Prichard Oil
Calgary & Edmonton
Champlin Oil & Refining
Cities Service
Gulf Oil

None

29,100
15,352

40,400

6(1)

2(1)

15,225
52,161

4(2)

10,000

Ohio Oil

None

4

82,500

1(1)

42,000
25,500

Royal Dutch Petroleum

3(1)

2(2)

2

8,000

2(2)

3

7,000
16,500

Socony Mobil Oil
Standard Oil of California

24,933

Standard Oil

1

5,000

Oil

4,000

1

800

1

2,900
1,000

1

-

1,600

Jefferson Standard Life

None

Lincoln National Life

7,400

Connecticut General Life
National Life & Accident

,____

Machinery, Machine Tools and Industrial Equipment
2

7,900

1(1)

7(1)
2
2

3,000
30,700
22,000
11,500
6,000
20,400
30,000*
7,100
13,400
5,000
11,600

Black & Decker

None

Bucyrus-Erie
Caterpillar Tractor
Chicago Pneumatic Tool
Combustion Engineering

3,000
13,500
None

None

Mission Corporation

None

Mission Develovment

2

2(1)

2(1*)

TELEVISION-

ELECTRONICS

3(1)

3(1)
1
3

FUND, INC.

1

43"° CONSECUTIVE DIVIDEND

2(1)

per

share from earned in¬

come,

payable August 31,

1959, to shareholders of
record

None

1
5

Fibreboard Paoer Products.

reinvestment

7(2)
4(3)
5(1)
2(2)

1

Chester D. Tripp
President

138 S. LaSatle St., Chicago
3, III.




,

_.

29,400

1

2,900

1

2(1)
2(1)

1

1

500

5,750
17,10C
10,000

14,500
15,600

6(1)
2(1)
1

3
1

None
1

18,000
2,500

68,000
7,400
2,000
57,600
11,500
None

4,400

3(2)

through conversion of debentures.

Aluminum. Co.

1(1)
1

of

America_____

171,000
1,000

4C2)
1

Kaiser Aluminum

None

None

Reynolds Metals
U. S. Foil "B"

4,045

3

2,310

2(1)

Anaconda

Magma

Copper

Miami Copper

2,600

1

300

1

3,900

3(1)

6,800
1,000

2
1

20,500

Cerro de Pasco

10,500

3(2)

4,000

2(2)

1,600

2(1)

Range
General Cable

2

2(1)
3

3(1)

3(1)

Phelps Dodge
Copper

2(1)

9
.__

Inspiration Consolidated Copper
Kennecott Copper

8(1)
2

2(1)

3(1)
5

3(1)

2,500
17,375

20,600
5,000
19,800
25,300
11,770
86,780
13,000
176,000

3

11,000
10,963
2,500

1

3,397

4(1)

2(1)

31,500

1(1)

4(1)
1(1)

5,000
3,200
—

35,700
7,990

and

None

None

10,000

1

1(1)

2,000
None

i

Brazilian Traction Light & Pwr.
Carolina Power & Light

15,000

;

Cleveland Electric Illuminating-

None

Consumers Power
Detroit Edison

22,700
None

' El Paso Electric—

None

Florida Power

None

I Florida Power & Light
,

4(1)
2

Baltimore Gas & Electric.

?

3(1)

30,000

( Arizona Public Service

I

1
2

Gas

American Electric Power
American & Foreign Power

g.

3(2)

1,900

Scott Paper

Utilities—Electric

None

10,000

20,272
19,700

•

Warren (S. D.)

_

Public

1

Mining—Aluminum

Aluminium Ltd.

5(2)

10,000

International Paper

Kimberly-Clark ______—-.
Union Bag-Camp Paper

Champion Paper & Fibre
25,200 ~ Crown Zellerbach
50,500 „;,St, Regis Paper

3(2)

and

5(4)
4(3)
3(2)

None
*

None

2(1)

United. Shoe Machinery

*

5(2)

August 3, 1959

None

2

Metals and Mining—Copper

date:

August 10,1959.

2

1(1)

Allis-Chalmers

15,000 shares

86,600
30,700
145,500
23,100
7,700

11,200

Worthington

Metals

11(3)

1(1)

3,500

__

3(1)

11,850

6,000

None

None

2(2)

76,991

Container Corp. of America

300

,__

Joy Manufacturing
Singer Manufacturing
Universal Winding

August 3,1959. Div¬

idend

8,000

♦Including

The Directors of Television-

Electronics Fund, Inc. have
declared a dividend of
8^

900

Gardner-Denver

2(2)

92,500

(N. J.)

37,000

1(1)

37,500

2(2)

Paper and Paper Products

1

3(1)

2(1)

6,500

Ex-Cell-O

10(3)

187,000
85,900

—

Union Oil & Gas of La

99,793
16,300
13,500

1,500

Dresser Industries

Sinclair Oil.

2(1)

None

2

2

6(1)

7,500

2(1)

Honolulu

None

14,500

1(1)

500

None

Aetna Life

5(1)

Texas Pacific Coal & Oil

5

DISTRIBUTORS

1

None

7,620
5,000

Gasoline

47,432
4,200
13,000
80,000
27,500

1

2

10,000

(Indiana)

Natural

None

Texas

1

None

Oil

Superior

23,840

^

1

16,000

1

2(1)

3,000

None

750

Refining

2

8,800

Insurance—Life

.Stale.

5■:

138,000

Register

None
Cily.

KD
5(1)

7,000

:

2(1)
stock.

20,000

6,350

Fidelity-Phenix Fire

3(3)

Phillips Petroleum

None

Insurance Co. of North America

None

2(1)

Louisiana Land & Exploration—

1

1(1)

3,000

3
Address.

1

6,000
19,600

5,400

1

None

8,000

Maryland Casualty
Travelers Insurance

None

None

4,000

Petr.oleum

Kerr-McGee

11,500
5,000

None

__.

Hartford Fire

2(1)

3(1)

2

Continental Casualty
Fireman's Fund

None

KD
None

-

1

1

selected for
ment

36,100

Continental

11,000

1(1)

19,300

British

4

1

2,000

-

j

r

60,100

Cash

Atlantic

1(1)

1(1)

National Dairy

!

16,000 h
None '

Burroughs _i

10,000

2

15,600
2,000

Beech Nut-Life Savers
Borden

7,000
None

preferred

1
1(1)
2

19,400

14,100

—

28,600

None

Swift
United Fruit

1(1)

sible growth

3,000

_•__

'

Oil

5

Pillsbury

1(1)

and pos¬

come

10,000

—

"t

2(2)

None

_.

6,400

Equipment

—

National

1(1)

7,500 V

Addressograph-Multigraph

2(1)

13,500

3(1)
1 V

20,000

Southern Natural Gas
United Gas

1,137
27,433

3

v

1,000

—

♦Including 5,175 shares through conversion of 4.50%

1

14,525
20,000 1

______

43,478*
25,800

2

7(2)

2(1)

:

.__

17,200

4

1

2(1)

Mississippi River Fuel.—
National Fuel Gas
Northern Natural Gas
Panhandle Eastern Pipe Line
Pioneer Natural Gas
Tennessee Gas Transmission
Texas Gas Transmission..
Transcontinental Gas Pipe Line
Western Natural Gas.;
Republic Natural Gas.--

19,900

1

2(1)

7,000

220,400

El Paso Natural Gas___

27,400
5,000

4(1)

3(2)
2(1)

12,500 V

1

__.

13,600

Colorado Interstate^Gas_
—
Consolidated Natural Gas______

3,400

3(1)

1 •

34,425

—

11,500

.

.

25,300

Natural -Gas

1(1)

Products

Armour

Refining

____

'

Id)

2,000

American Natural Gas__
Arkansas-Louisiana VGas-;___i__

;

1

500

Joseph Lead

VW,

V..:

1

3,000

*cStanrock Uranium Mines

2

BOOKLET-PROSPECTUS

,

1

10,000

&

Falconbridge Nickel
Jersey Zinc

None

2(1)

2,000

New

31,600

1(1)
1(1)

12,200

Industrial Acceptance Ltd

American

None

1

Finance Companies

5,600

Smelt.

&

5 Gunnar Mines V_ i_ _'_
Nickel •____
^Ventures .Ltd. ;V^_-_VV2:V--i.__^__

?;V, 300 '"

!

V:
1V-V*'.

Booklet (prospectus) free from your dealer

1(1)

10,500

Climax___

Metal

Zinc, Lead
.'Bridgeport Brass.

.

2(2)

Mining—Other

American

3,000

•

American

,

2(1)

24,000

-8(4)^8^005 ^International

None

None
1

6

15,550
18,200
35,000

-

1

300
72,500

114,600
8,039

Philco

2

DREYFUS Corp. ,50B'way.,New York 4.

4,000

24,800

—

3(1)

200

2,000

-

390

2(1)

risks in that direction.

P

"

JVVV

l

12,500
None

__

Philips'Lamp Works
(50-guilder shs. or equivalent)
Radio Corp.
Reliance Elec. & Engineering.Siemens & Halske (ADR)
Sprague Electric

None

1

_.

McGraw-Edison

14,000
38,700
4,700
28,100
36,500

3(2)

and

•1(1):

jl

None

_________

Hermes Electronics

700

3(1)

takes what it considers sensible

7,000
6,000
75,050

1

None

______

Hazeltine

101,500

2

management hopes

4,800

None

2,500
Industries—

Electronics

General Electric

700

2(2)

Dreyfus Fund is a mutual fund

700

1

Mining—Gold

Kerr-Addison Gold Mines

18,100

Metals and

4(1)
2
2

and

Dome Mines

None

1

None

2(1)

or

Shares
Metals

Electrical Equipment and Electronics

to make your money grow

No. of

Shares

None

2(1)
2

None

in which the

Nc. of

Mgts.

1(1)

The

Sold——

No. of

Mgts.

No. of

Street.

Thursday, August 6, 1959

.

No. of

——Sold

1

160 Montgomery

.

—Bought—

25

—Bought—

Chronicle)

.

20,000

1(1)
None
2

None
3

None
None
None

2(2)
None

Gulf States Utilities

None

Idaho Power
Iowa-Illinois Gas & Electric
Kansas City Power & Light
Kentucky Utilities

2,600

2

None

None

3,100
6,500

1(1)

6,000

1(1)

Long Island Lighting

Continued

on

1

page

2S

(539)

Number 5870

190

/olume

than

24

Continued, from page

Funds Retain Caution
As Bull Market Rolls On

bought 36,100 shares of Phelps
Dodge, while Lazard closed out its

,

the

June

fund

quarter

20,000 shares.

managements particularly favored
the

groups:1—automo-.

following

tive, aluminum, steel, and textile.
Also bought, but more moderately,
were
banks, building, chemicals,

market has shot up once ever, it would be a mistake to
to new highs, proceeding conclude that the stock market is
nore rapidly in its accent than any
therefore safe for the next six
"robable increase in earnings and to 12 months. To put it another
dividends, the Value Line Fund way: don't expect too much correa«ain moving
toward a de- lation between business and the
ensive position."
stock market trends at this stage
Consistent with this sentiment, of the economic cycle. During the
,he three Value Line funds sold past five years the stock market
.took

tiore

XHE FAVORED GROUPS

ommon

investments have
reduced, and
have indicated above,

stock

moderately

hat. as we

acquired short-term government
| jonds and new issues of good| *rade corporate bonds, at very ati* -ractive yields. Comments Presiient Wftltcr L. Moigsn,
the pro:eeds from common stock sales
ind the net new money received
:rom
shareholders were invested
primarily in high grade corporate
j Donds and U. S. Government ser lurijfeies .
. . These changes have
i also' resulted in some realized se-

|

t

seller was Commonwealth InvestmentIncidentally, the three
ssllsrs of Ford of Can&dci A
stock eliminated their holdings
Scudder
Stevens '& Clark Fund' in response to
the tender ofshareholders'
Trust
of Boston' fer made by Ford Motor Co.
the three Value Line funds In_ Runner - up
in popularity
gtitutional Investors Mutual Fund, was
General Motors, with 15
Funds substantially selling
commorTstocks on balance includod AxG-Houghton Fund "A"
and
stock Fund
Boston Fund,

*
T*1*! s^er nate c°mes from science
Jpohn P. Chase, of Chase Distribu- mati0n
t

i

ors

%

Shareholders'

serves

their
nncitmn
a

increased

or

Boston

Our rapid recovery would seem
o raise the question as to whetner

y

Missiles-Jets and AutoRowe Price either

and

]T)aintained

(38,000 shares),
Investors
(33,200),
and Lazard (20,000).
Next most
favored steel issue was Republic

Incorporated

portfolio liquidity is the reported
increase
in
the
redemption by

Massachusetts

(the latter two initially). Newly
on
the scene was Steel Company

rnltrvln

■j

already

Investors (268,000) and
(145,000 )t Also bought in
Britain were United Steel Com¬
panies, Ltd. and Stewart & Lloyds
(likewise by Incorporated Invest¬
ors).
From France Sidelor ap¬

whh "° sellers. The funds' sin&le transaction in American

initial

;

since

1

r^asinliv
creasingjy

cautious

current favorable
>

Win"
^ ISJ£t l
in projecting

Aluminums Mostly Favored

to be warranted
a

by virtue of the
of forces that

number

fniSl pSes

Market.

tion

of

foreign

European

the

Lazard reports

three

more

the addito its

names

issues, whose

.

would

seem

to

indicate

.

.

the

recovery

INDUSTRY GROUPS

present

The following analysis of portj0n0 changes, drawn from our

will

carry

tabulation

on page

through well into 1960, but that

tions in nearly

the recent rate of

is

likely to

be

gain is very un-

maintained.

How-

based

on

Members New

25 of transac-

475 stock issues,

cyclical textiles came into

The

rather

•

*

bought by
managements, without a
Viscose,

can

NAME.
ADE)RESS.

.STATE.

CITY

seven

seller.
Affiliated,
Dreyfus, U. F. O., and Selected
buyers

Largest

were

American.

THE

Banks Moderately

AXE-H0UGHT0N

Bought

FUNDS: "A"

interest
was
Bankers Trust, First

in

"B"

York,
Marine Midland Corp. (The

and

has

issue

latter

quarter.)

dominated

the

Selling pre¬

Chase

in

"STOCK"

new

since

ground

market

high

close of the

into

gone

Manhattan

AXE SCIENCE

(by One William, American Busi¬
ness Shares, Group Securities, and
Investors Mutual), while a new

CORPORATION

30,000-share position was taken by
George Putnam Fund. American
Business Shares was the largest
seller of Manufacturers Trust; and
One William the largest disposer
of

Irving Trust, in a 15,300

»

& ELECTRONICS

close-

AXE-TEMPLETON

out.

GROWTH FUND
OF CANADA, LTD.

shares attracted some

tial buying.

substan-

Best bought were

Anaconda

and Kennecott.

egt

of the latter was Na-

buyer

Securities

its largest single

found

1
In the face of volatile price

LargSeries,

Stock

Affiliated Fund,

of

mitment
was

-Lead

National

buyer in

with a new com¬

5,400

shares.

fair buying, without any

ing, of Celotex,
Portland

Distributed by

There

AXE SECURITIES CORP.

sell¬

TARRYTOWN, N. Y.

Flintkote, General

Cement, and Johns-Man-

Conversely, there was only

ville.

selling

(if moderate)

of Minne-

*

Hi

Why not Get the

the number of man-

agements buying or selling,

Phila. 9, Pa.

Klngsley 5-3311

good favor during the quarter.
Outstanding favorite was Ameri¬

Blue-chippy

11

Uonal

*

York Stock Exchange

123 So. Broad St.,

and Fair Demand

Coppers Liked

per

•

•

test)

37 000

movements of the red metal, cop-

POLICY TOWARD

of the

.

.

g momentum

business

that

(established

Textiles Perk Up

total value

appearance now equals 10% 0f the net assets.
only in the later stages of a boom
period are already with us
'
Taking all of the plus and minus
factors
into
consideration,
it

acquit

jy

WelSon

•

distributor

Common Tri-Continental Group alone new- Building Shares in

normally make their

.

Street

William

Q

,

,

T

Fund

Request

National City Bank of New

Con^derable buying was con- Lth^ith
oM0,Hed in foreign securities; espe- 000 shares. Kaiser Aluminum was
cially in issues of corporations bought in bis blocks
with the

business^ trends, within

This attitude of mind would seem
fact that

Interest in Foreign Securities

extent

the rapidity and the
to

i

1958-

peared, bought by Lazard.

evinced

...

in the June garter of sell-out of 25,000 shares. More
uniformly • in favor was Alcoa,
whose
sevpn
hovers
included

and 30,6

However,

place.

on

tWa/ine6/cc/c TP c€o,

Considerable

nprinrfcnf

nlai?

taken

Prospectus

Lazard

lion in the June quarter from $198 eluding Madison, M.I.T., and
million in the first quarter, and state Street. On the other hand,
|:Jthe average length of periods of were more than twice as large as the issue was sold by four manfe|fhnn0I™C
oS T4 in the second quarter of 1958. The agements, including Incorporated
^
ciWo
thp ratio of cash"ins to new sales waa_4nVestors,
which eliminated its
MQ^r w
I,!? 41A% in the June 1959 Cluarter> 140,100-share holding; and by
thl?
'rint
33'1% in the March 1959 quarter, Fundamental Investors with a
1

INC.

porated

the very speed and breadth of the £lmd investors of their shares.
Aluminium, Ltd. was wellNS?°Xer?
n-+uV6ri f
These cash-ins rose to $229 mil- bought by 11 managements, innf

FUND
A Mutual Investment

Wales, Ltd., bought by Incor¬

of

^

I
fc1 rfpLJp

PHILADELPHIA

Selected, Lazard,
Life, and Dreyfus

William,

One

including

purchasers

its

Steel,

tbe substantial sellers of GM was
Lazard, who made a complete
closeout of its 32,500 shares. Of
Chrysler there were four buyers,
Motors was a 30,000-share
acquisition by Dreyfus.

Fund

vestment

Chase Fund of ^Boston: p0ssible factor motivating greater

J"d

•i

which
Trust of

Corporation

mental

buying managements, including
four initial purchasers, the largest
of the latter was One William
Street with 66.000 shares. Among

■i

29

largest

As mentioned above, Ford was

the best bought stock, not only in

General American Investors, and
;] :urities profits and a moderate in- Lehman Croporation. It should be
| grease in investment
income, noted that Dreyfus' Fund, while
I since the interest rate on good showing an excess of common
| ?rade bonds. is currently higher S£0ck buying, invested very subhan the average dividend yields
stantially in U S. Treasury bills,
jn investment quality stocks."
Bullock Fund Loomis-Sayles Axe

on page

and only three sellers.
The
buyers included Funda¬
Investors—Diversified In¬

ers,

Automotives Push Ahead

American European Securities,

Continued

lin, with 11 managements as buy¬

has tended to run from six to 12 this industry group, but among all
months ahead of the business in- stocks. The 23 purchasing managedices."
ments included Fidelity, United
Other fund managers stressing Funds, State Street, Affiliated,
the alarming impact of the pres- M.I.T., Dreyfus, Madison, ~~and
ent inverse stock-bond yield ratio Group Securities. Eight of the 23
are Commonwealth Income, and buying managements were initial
Whitehall Fund.
investors in the issue. The lone

stock on balance a net
otal of over $7 million.
v
;
Wellington Fund reports that

chemicals

Union Carbide and du Pont,

were

troubles, the fund managements
participated
vigorously
in the
purchasing of steel shares.
Far
out in front was Jones & Laugh-

c

common

Popular

bought

best

Apparently paying more atten¬
tion
to
earnings than to labor

*

*

*

Chemicals Still

Strike Prospects

, atilities

oils and utilities.

Gypsum.

in Face of

Steels Bought

National

and

apolis-Honeywell

The

'Tnlm-fdfsfavor'w^e Srlines
n

shares. This fund also

with 57,000

the number of shares in¬

on

volved.

During

I ieen

27

The Commercial and Financial Chronicle

. . .

—

INVESTMENT FACTS
about

m

SELECTED
? ?

.

The

Shareholders'

The Chase Fund

Trust of Boston

of Boston

(jeorge

PUTNAM FUND
of'Boston
■'A BALANCED

AMERICAN

A

balanced

and

A Mutual Fund

income

for

possible long-term

possible capital

growth of income

THE

and

PUTNAM GROWTH

appreciation.

capital.

Prospectuses

available from Investment

Dealers or mall coupon to:

FUND

Emphasizing possible long-term Capital

CHASE

Growth

60 CONGRESS STREET,
New York

Chicago




Los Angeles

DISTRIBUTORS

75 Federal Street

□ Shareholders' Trust of

Boston

•

mutual investment fund

diversi-

portfolio of American
for the possibility

securities, selected

long term GROWTH
current INCOME
—for FREE copy

other

of capital--MM
(

of prospectus

information—fill In name and

address

on

coupon

below and malt f#

Selected Investments Co.

I

Hi

\

135 S. LaSalle

SL, Chicago 3,
rospectujand <

Boston 10, Mass.

CF 8-6

□ The Chase Fund of Boston

Name_

,

a

f

BOSTON
Washington

.

which supervises a

CORPORATION

Prospectuses on Request

Putnam Fund Distributors, Inc.

IS

Atd

Mutual

Fund for current

FUND'S

SHARES-inc.

Orlando

Address.
_

Address

State.
&sy.

JtsH.

28

(540)
The Commercial and Financial Chronicle"I

Continued jrom page 26

—Bought^'"-

\

No. of

1

4(3)
1

.2(1)
1
2

For Investors

1
1

Seeking Long Term
GROWTH

3(1)
1(1)
4(3)

POSSIBILITIES

1

This Mutual Fund seeks possible

growth of capital and income by investing in a diversified list of com¬
panies in many industries which
are

active i

Prospectus

5(2)
5(2)
,

2

9(1)

below to:

None
None

F. EBERSTADT & CO. INC.,

'

Manager and Distributor of Chemical Fund

65 Broadway, New York 6, N. Y., Dept. C

I

•<

2

request from your dealer, or

mail coupon

!

•

chemical science.

n

upon

3

3,300
2,100
14,700
5,000
9,000
3,000
25,000
10,000
3,675
11,500
100,000
48^600
10,925
5,000
31,654
135,400
10,000
1,100
52,700
None

None

No. of

Louisville Gas & Electric

Name

.

Address

I

Northern States Power

20,000
2,000
6,000

1(1)
3(1)

Oklahoma Gas & Electric
Pacific Lighting

—

Pennsylvania Power & Light—
Peoples Gas Light & Coke
Philadelphia Electric

Rochester Gas & Electric
Southern Co.

Southwestern Public Service
Texas Utilities

Virginia Electric & Power.
Boston Edison

Columbus & Southern Ohio Elec.

None

None

None

None

General Public Utilities
Middle South Utilities

None

Niagara

20,000

1

200

Mohawk

Power

None

2,300
None
_—

For Income

None

None

None

GENERAL

INVESTORS

None

None

None

7(1)
2(1)
None

TRUST

38,500
182,800
15,000
None

1

KD
4(2)
Prospectus and Literature

2

None

INVESTORS PLANNING CORP.
of America
New

42rtd

York

Street

17, N,

Utilities—Telephone

_

American Tel. & Tel

KD
KD
None

1

4(2)
2

Do the

Investment

Possibilities in

2(1)
2(1)
3(1)
5(2)
6(1)

United

Artists

20,000
1,000
None

82,000
80,600
1,200
26,900
4,100

Atchison, Topeka & Santa Fe__
Chesapeake & Ohio
Chicago Great Western
Chicago Rock Island & Pacific..

17,100
3,000
9,000
52,000
11,500

Illinois Central

7,200

4(1)

26,000

Southern Railway

Kl)

23,000

Atlantic Coast Line

5,000

Baltimore & Ohio

None

Mutual

13,000

115,100
None

Invest¬

Fund

growth of capi¬
tal and income in

companies actively
engaged in theElectronics field.

2(1)

American Brake Shoe

1

3,000

3

20,800

2

11,900

1

4,600

None

None

from your invest¬

Television Shares

Management Corp.
i

Chicago 3, III.

Broadway, New York 6, N.Y.

Jones & Laughlin Steel

10,200

Allied Stores

13,000

Republic Steel
Steel Co. of
U.

S.

3(1)
1

5,900

10,000

Grant

(M. A.)

250

2(2)
2

2(2)

Celanese

Simplicity Pattern
Stevens

15,600

United Merchants & Mfrs

7(1)
3(2)

7(3)

48,425

Lorillard (P.)

30,000
34,900
7,700

Philip Morris
Reynolds Tobacco

1

(J. P.)—

Macy (R. H.)

KD

4,000

May Department Stores

4(1)

55,900

54,500

...

Montgomery Ward
Penney (J. C.)

2

2

3

5(1)

2

3

4(2)

1

1

2

2

1

1(1)

4

1(1)

2

None

3(1)
4
1

2(1)

3d)

Sears, Roebuck

:

3(2)

13,000

__rr_r.;

American Tobacco

3,200

;—_____

3

2(1)

4,500

4

4,500

Liggett & Myers Tobacco

3

est1'-.

1

Alberta Gas Trunk Line
American Commerc'l

25,100

7,300
3,000

None

None

Brunswick-Balke-Collender

None

None

27,000

Budd

None

None

7,000
6,500
24,500
21,100
2,000

Carborundum

4(1)

____'_1

10,000
None

Glidden
Grace

J2--

Gustin-Bacon Mfg.

2,200

Haloid Xerox

—

Harris-Intertype

_1'.

Kaiser Industries

3(1)

1

14,000

3(1)

McGraw-Hill Publishing

1

300

2(1)

3,900

2(1)
2(2)

1(1)
1(1)
1(1)

2(2)
2(1)

Hilton Hotels

McKesson &

4,800

3

2(1K
2

19,600
2,500

35,400

_________

1

None

500

1

2,300

1
1

10,000
None

1

None

600

RobbinsJ__r_r^l'_

Newmont Mining

1

1,500

1

None

None

Gamble

1,000

KD

20,000

--r.--

Outboard Marine
Procter &

None

KD

2,000

1(1)

Remington Arms

None

None

2

4,900

Simmons

None

None

1

2,000

Stone & Webster

8,000

KD

2(1)

9,000

Thiokol Chemical

2,280

6(5)

82,500

Unilever N. Y.

(50-guilder shs.)

2(1)

3,700

Wrigley (Wm.) Jr

4,000

Air Products

KD

1(1)

1

None

None

1

None

None

2(1)

None

2,500

3,800

American

FXR, Inc
Halliburton Oil Well Cementing

3,400

1(1)

None

None

Lees

1(1)

1
1

None

None

1

None

9,000
300

None

2(1)
3(1)

2,500

Johnson

Newport News Shipbuilding

.

Philadelphia & Reading

Nnne

Vitro Corp. of America_

2(1)
2

300

Minnesota Mining & Mfg.

Polaroid

2(1)

2,825

(James)

2,553

3(1)

7.500

Hammond Organ

2(2)

7,826

11,300

-

Johnson &

1

55,900

None

30,000

2(1)

2(1)

29,600

39,500
None

4(2)

3,300

American-Marietta

None

1(1)

2(1)

12,400

Express

Colgate-Palmolive

Kl)

1

None

4,100

None

1(1)

None

17,400

American Bosch Arma

1(1)

None

...

Mergenthaler Linotype
.

None

3,500

Hertz

6,800

2(1)

1

None

None

Society

5,000

12,000

5(3)

1(1)
None

None

1

17,000

None

6,800

——

(W. R.)

2

600

1

None

Ekco Products

Grolier

None

1,000
—*212.21

Gillette

1,840

1

3,000

...

Dravo

29,900

2(2)

None

33,000
11,200

3(2)

1

None

None

-

American Machine &
Foundry.American Photocopy Equipment

Kl)

58,200

None

1

24,700
13,600

—

2(1)

2

90,500

None

2

25,000

4

3(1)
2(1)

50

None

2,000

Tobacco

2(1)

17,700

KD
1

2(1)

None

500

1,000

None

None

18,300

15,000

Kl)

3

12,200
8,000
7,500

Cluett, Peabody
Rayonier

10,000

Kresge (S. S.)
Kress (S. H.)_

2

None

2

KD

2

None

2(1)

5(2)

23,500

American Viscose

2,000

2(1)

2,500

(W. T.)

6,000

_

_

45,800
23,000

1

None

Great A. &P

4,000

5(1)

"A"-

4(2)

4,500

_

21,700

None

43,500
20,500
43,360

_

Cleveland-Cliffs Iron
Hanna

1(1)

None

_

None

2

500

1

7,300

Wales, Ltd

None

1

12(1)

2

300

...

1

2

_

Youngstown Sheet & Tube

None

7,600

_

Steel

2(1)
2(1)

17,500

_

Sharon Steel

None

1

None

None

Federated Department Stores
Gimbel Bros.

6,600

_

1(1)

None

6,000

Bond Stores

2

—...

3

Beaunit Mills

Trade

17,300

_

Lone Star Steel

KD

3(1)

Address.




.

Granite City Steel
Interlake Iron

2(1)
KD
3(2)

34,000

.

Carpenter Steel

National Steel

None

13,100
3,600
29,000
5,840
2,000
10,900
None

-

Burlington Industries

4,000

Brake

3(2)

None

_

_

35,000

47,000

2(1)

or

.

_

3(2)

1,000

Union Tank Car

Retail

_

Steel

None

30,000

General American
Transport
Pullman

11,000

Iron

15,000

.8,500

Westinghouse Air

and

74,800

17,000

Baldwin-Lima-Hamilton

6(2)

7(3)

3

ACF Industries

None

17,602

2(1)

2,600

1,300

2

4(1)

None

75,000

4,000

3

4(3)

Railroad Equipment
2

Kl)

Textile

2(1)
2(1)
1(1)

5,000

1,700

Western Pacific

Booklet-Prospectus of this

City-State.

2(1)

3(1)

2,000
11,700
1,025

4(4)
2(1)
2(2)

None

Armco Steel

Bethlehem

None

2

19,600

1

115

None

3(1)

None

1,700

Union Pacific

whose

primarily

invested for possi¬
ble long-term

Name

None

2(1)
4(2)

24,000

Virginian Railway

3,300

2(1)

m

135 S. LaSalle St.,

3(3)

43,400

KD

2

FUND, INC.

ment dealer

3(2)
2(1)

14,200

Denver & Rio Grande
Western—
Seaboard Air Line

now

2(1)

None

None

Chicago & North Western

Mutual Fund

2

21,500

17,000

Northern Pacific
Southern Pacific

None

Get the

2(2)
2(1)

5,300

None

i

2(1)
4(1)
3(1)

131.200

None

'■4

Steel

300

Norfolk & Western

12,500

ment

Allegheny Ludlum Steel

42,300

Kansas City Southern
Louisville & Nashville
N. Y., Chicago & St. Louis

3

assets are

13,000
63,100
66,000
2,000
1
8,000
4(1)9,900
2(1)
24,900
11(4)
109,600
2
4,950
4(1)
44,800
9(2)
80,200
1
1,000
2(2)
413,000
11(2)
40,000
4
12,300

3(2)
6(2)
8(4)
Kl)

.1,300

Great Northern

None

?.i:=:fr:teS8

Goodyear Tire & Rubber

Miscellaneous

ELECTRONICS

Kill

3(2)

12,400
9,400
4,000
15,000
29,500
9,100
47,700

1,177
5,800
4,800
22,300

500

TELEVISION-

.

2(1)

32,000

Kl)

>«W-*WS

10,100
10,050
7,000
234,800
29,500
50,100

None

3

INVESTIGATE

I

1

31,841

Interest You?
WHY NOT

2

2

40,000
4,700
2,400
40,800

;

S., Rubber.

KD
1

5,500
13,450
22,600

Disney (Walt) Productions

ELECTRONICS

A

16,460

3

Railroads

7(3)

2

1

2(2)

43,900

6(2)

m

U.

2(1)

4,500

179,300

Stores

Firestone Tire & Rubber
General Tire & Rubber...
Goodrich (B. F.)

and Telegraph

British Columbia Telephone
Gen'l Telephone & ElectronicsWestern Union

—...

12,700

3

1

36.000

None

1

2

None

12,700
10,500
5,400
80,000
15,000
26,000

Armstrong Rubber

Y.

NATIONAL DISTRIBUTOR

A

West Penn Electric
Wisconsin Electric Power

None

None

from

East

Washington Water Power

Winn-Dixie

6,500

-

6,000
1,900
9,600
25,100

1

Radio, Television and Motion Pictures
15,000
American Broadcast-Paramount

6,500
27,000
23,070
18,988

Mgts.

16,000
None

Green (H. L.)
National Tea

None

1

2

60

Southern California Edison
Union Electric (Mo.)
Virginia Electric & Power rights

Public
2

K

Rubber and Tires

2(1)

None

8,000
___

2

1

3(3)
4(1)
4(1)

500

Pacific Gas & Electric
Public Service Electric & Gas__
Public Service of Indiana

None

1

None

__

Commonwealth Edison

1

1

Associated Dry Goods—
First National Stores

None

Shares

:

ACF-Wrigley Stores

None

1(1)

2,000
49,300
3,000
10,000
2,000
2,600

Puget Sound Power & Light

Consolidated Edison (N. Y.)

100

....

None

1

2,200

Potomac Electric Power
Public Service of Colorado—__

None

1

1.

Spiegel
Stop & Shop

-

1

31,000
19,819

-

-

None

None

No. of

^

25,100
35,000

None

None

None

I

,No.of

Shares

None

KD

None

None

j

1

12,000

None

®

None

2(1)

New York State Electric & Gas
Northern Indiana Public Service

.

2(2)

None

2,600
8,100

Montana Power

2

Mgts.

None

Minneapolis Gas

Mgts.

No. of

Shares

None

J
|

Sold-

No. of

GU1U——

Shares

3

Thursday, August 6,1959

-Bought—
No. of

:

....

No', of

Mgts.

,

♦.

3

15,800

4(1)

6.200
.

.

2

1,500

2

24,300

2(1)

Number 5870

190

Volume

quarter.)

Continued jvom page 27

(541)

\

The Commercial and Financial Chronicle

. . .

Wellington

Growth each bought

and M.I.T.
50,000 shares

Drugs Meet Mixed Reception

that order.

GROUPS IN DISFAVOR

Largest buyers of

.

,

wise encountered good buying, by
M.I.T.

,n

.

Gulf States Utilities like-

interest.

Growth

M.I.T.

and

previously Merck attracted buyln£ interest, which, however, this

and

Lehman.
*

time

*

*

,

,.

.

A

As .m the Preceding quarter,
1S®U€S encountered considera ?e
lonS-term profit - taking.
J,ncJ?a ? }er£ were Lehman
and
ITllca Fund, which reduced their commitments. Also, as

in this issue.
Coincident
with
rights
offerings,
Florida
Power and
Virginia Electric &
Power also attracted good buying

newly

Funds Retain Caution
As Bull Maiket Rolls On

29

was

STREET

BROAD

largely offset by selling.

INVESTING

Carbide were One William Airlines Encounter
rpnTTDc
n/r^i?rr.TXT/-.
n/iTvrD
Selling was again directed against
GROUPS MEETING MIXED Bristol-Myers, Parke, Davis, and
and Chemical Fund (7,Liquidation
Pfizer. Largest seller of Bristol
qnh)
Of du Pont, Investors Mu¬
REACTION
Only KLM went through the
Myers
was
the
United Funds
tual bought 6,400
shares, while
„
...
.
T
t
period without encountering any Farm Equipments Divergent
Delaware
Fund bought 5,000
Despite predictions of reduced
selling, its big buyer being Madi¬
u
p ^ parke Davis Was Afshares initially
and Wellington

'

T]nion

ESS)

son

8,000 shares.

sold

Hooker and

Dow,

In

no sellers.
of the six buyers of

there were
est

Stauffer
The larg¬

Also
son

initially. New names
appeared in two (of the three
leading German chemical com¬
panies, namely Farben Bayer and
Farben
Hoechst.
Both were
bought by Incorporated Investors

ooo'

shares

of

51,400 shares).

Scudder

Long-Favored Oils

Meet

Increased Selling

The

for

buyers

so

long,

petroleums, finally encoun¬
tered distinct bearishness. Selling

met

undisputed center of attraction.
Its number of buyers equaled that

the

The

bought

heavily

was

Investors

by

Mutual, which completed a 120,900-share acquisition, offsetting a

sale

60,000-share
Securities

of

Stock

National

by

Investors

Series.

also the largest buyer

was

General

70,000

Dynamics,

share

with

acquisition.

displayed

funds

a

mixed

Hardest

a

liam
liquidated its 35,000-share others.
issue was closed out by Lehman
General stake in Standard of Califor¬
(6,350).
nia.
Largest
sellers of. Jersey Containers and Glass Mixed
Electric,
mostly by
Wellington
were State Street (28,000), Lazard
The outstanding favorite in this
In the case of the "glamorized"
(with 57,000 shares). There was
was
Pittsburgh
Plate growth lssues of the llfe comalso good buying of Westinghouse, (15,124) and Dividend Shares (13,- catesorv
while?
Chemical Fund Glass,
with
Madison Fund
the largest 300);
the face of the loss of ing
the
quarter.
Lincoln was
12,100
shares and the one of its major customers. It cloged Qut by Lehman and Qne
purchaser (a new commitment of bought
17 500 shares). Interest was main¬ Scudder Fund 9,333 shares. Royal

well-bought

was

fn

tained, although on a reduced Dutch, which for some time
scale, in Siemens & Halske of been the best-bought issue in
Germany, the largest buyer being
Scudder Common Stock Fund (7,-

category, this time
more
selling than

had

wn'iLm

encountered

by Chemical Fund and AmeriEuropean Securities. In Continental
Can
buying
exceeded

liquidation was enlarged by closeouts on the part of Incorporated
selling, the largest buyers being
(53,000), Dominick Investors Mutual and Fidelity;
with 114,600 shares sold by six Investors
managements, including National (12,500), New England, and Drey¬ while, on the other hand, One
of William closed out its au,uou snare
50 OOoUhare*
Securities Stock Series with 62,000 fus. The two largest buyers
wuiiam
Royal Dutch were Dividend holding. American Can was sold
shares, with no fund buying it.
Shares (20,000) and Lazard (15,Finance Companies
by
M.I.T.
Delaware,
Affiliated
000). Among the more favored
Bullock, and Tri, while
oils were the domestic companies Fund,
Mildly Favored

turned

In

this

group

C.I.T. (Financial

was

bought by four managements,
M.I.T.
which
added
27,100 shares to its previous 200,000 share holding. Selected Amer¬
ican was another buyer of this is¬
sue, with a 18,000-share (addition,

including

as

Dominick

were

new

and

with

with

Fund

a

commitment of 5,000 shares,
Group

500-share

a

a

Rails Moderately Bought
was

of

the

group's improved
featured by acquisi¬

Atchison,

two Eaton

largest

which

of

Howard funds

&

with

buyers

a

the

were

joint

new

commitment of 40,000 shares,
-the two next best
bought rails

were C. & O. and the market-lead-

tng Norfolk & Western. By far the

largest buyer of the former issue
was

Wellington with

a

new

com¬

mitment of 64,800 shares; whereas
K-tate
Street

was

(11,200). On the

the

largest seller

other

hand, there

considerable selling of newlylP!u Denver & Rio Grande; of
■aboard ^ir Line

Pacific.
some

But

U.

P.

substantial

cially by M.I.T.
two

Eaton

Standard of

expanding
enterprise,- including
pending merger with Superior),
was bought by eight managements
including Lazard,
and sold by

its

five, including

Lehman Corp.

Utilities Lose Some

fiosed
u

Life

oUt bv

7^!

i

in

&

&

and

also

of

enjoyed

buying,

(80,100)
Howard

(35,000 newly).




Union

espe¬

and the
funds

to net

switch from

Lafard
w

and

RESEARCH AND

FUND

MANAGEMENT, INC.
67

WALL STREET

NEW YORK

Pi,l

was

Lehn^m
a

foiios

was

Jefferson

Standard

Life, which was newly acquired

by De Vegh Mutual and by Value

k*ne Special Situations.

large

Declining Interest in
Gold Shares

One

William

seller

joined
Dreyfus

was

by

also

a

Libby-Owens-Ford,

of

Wellington;

and

Delaware

while
were

"

Selling outweighed buying in
Kerr-Addison, Canada's largest
Continued on page 30

Ground

For free

investment dealer, or
mail this ad with your name and
see

your

address to

50

Dept.

KEYSTONE

THE

Among

the

column,

in

the

apparently

conscious of the growth

Southern

Co.

buyers and only one
issue has forged

high

since

attribute,

with

seller. (This

the end

of the

*

b«

■ystematically
accumulated in
A MUTUAL FUND

amounts

INVESTING IN A LIST OF

of $30

or more.

SECURITIES SELECTED FOR POSSIBLE
TERM GROWTH OF

LONG-

CAPITAL AND INCOME.

SOVEREIGN

Prospectuses available from
your

Investment Dealer

or

Fret of Pennsylvania

A

vesting

TEXAS FUND MANAGEMENT

COMPANY

Personal Property 7'«J|
FUND in-

MUTUAL

in

a

diversified

froup of securities selected
possible long term
or

growth of capital and
income.

Send for FREE Prospect®

423 Texas National Bank

from your Investment
Dealer °or

Bldg., Houston 2, Texas

five

onto another all-

COMPANY

Shares may

still

utilities

CF-l.

Congress St., Boston 9, Mass.

Selling

bought

descriptive

brochure and prospectus,

net buying
of many

Energy Fund.

5, N. Y.

but added to appear in fund portto by Pine Street. A
new name

bought only by Group Securities.

buyers.

unaccompanied by
buying took place in Boston Edi¬
son, Columbus & Southern Ohio,
Commonwealth Edison, Consoli¬
dated Edison, GPU, Middle South
Utilities, Niagara Mohawk, Union
Electric, and West Penn Electric,
among others. Selling hit particu¬
larly hard the split GPU, of which
Wellington sold 140,000 shares and
Investors
Mutual
(88,800); and
also Niagara Mohawk, sold heavily
by
Wellington and lightly
by

time

from

selling in the case

issues.

were

or

Mutol'

Accident

Apparently following the new
hike "in competitive fixed-interest

stantial

carrier

buymg
tions

and
Indiana. Texaco, the
Shell,

Continental,

bought by InTCstOTs

National

available to the investor,
C.I.T. was Loomisthe
utilities lost some of their
15,000-share closeformer growth-emphasized popu¬
larity. There was indeed a sub¬

out.

The

as

but

yields

lone seller of

Sayles with

Common
acquisition. The

Securities

such

investment dealer,

your

MS
.35
K' r™,/h

can

newly). Investor disaffection
decisively
against
ITT,

500

Prospectus upon request

from

William Street; but was again
bought by Dominick Fund. Con-

Tt

out

The

buying.

FUND

Pa„nie?t,f0m.e.!!HLng rc^,Ln

Fnnris°rgrn!ine?hP^nDn?k rrnlft?

this

PIONEER

^

_

commitment.

000 shares as a new
Also

.?■!

ADDRESS,

underwriting
prospects along with possible
vulnerability of their cornmon, stock-laden portfolios. Fire"ianlsl Fund was purchased newly
by State Street (20,000 shares),
?nd added f6 by Incorporated
Investors (10,000); while on the
9 b,f,F
Putnam eliminated its
Sf000-^^ holding
Maryland
Casualty was bought by Broad
street and its
sist<er
fund,
Whitehall in a combined new acq3Jlsl^}anT?|
s?"
chusetts Life added 2,000 shares to
its commitment; there being no
seder of this issue. Travelers,
which also doubles as a life com?uny, was bought by Lazard
(7,500), ^by Commonwealth La¬
Yfjt1?1611! ^ '5?1^ ,mejStreet
(500).
On the other hand, this

the former
Sinclair, hit in this group were Boeing, sold
found
only
one
small
seller, including Wellington).
met
very
heavy liquida¬ by M.I.T. (90,000), Tri, Fidelity,
whereas
RCA was sold by six too,
tion
by
Wellington
(140,000) and others. M.I.T. was also the
managements. Among these sell¬
and also by One William, (40,000). largest seller of United Aircraft
ers were Wellington (40,000), and
also
figured as (22,000), which issue was likewise
Affiliated Fund (16,500).
By far Wellington
the
largest
seller
(51,900)
of sold by Value Line and Investthe largest buyer
of RCA was
of
Boston,
among
Socony
Mobil, while One Wil¬ ment Trust
the United Funds group, with 50,although

RCA,

of

•

NAME

l°ymS improved

American

American

North

Mutual

prospectus and

me

descriptive literature.

attitude toward the fire and
casualty companies, which are en-

industry probably
maximum of divergent

Aviation, and also General Dynamics,
enjoyed
good
buying,
Martin was
newly acquired by
Wellington to the tune of 60,000

by
Investors Mutual.
Again in the case of Gulf Oil,
fairly
widespread buying
was
more than offset by selling (again

send

Please

Insurance Issues

reactions. Martin, North

longer the purchase

no

was

65 Broadway,

Lessened Interest in

aircraft

shares.

Sales Corporation,
New York 6, N. Y.s

To Broad Street

Y?s*;ors' Fidelity Fund and
Massachusetts Investors Growth.

among
others;
added 20,000 shares

previous 40,000-share com-

The

1

bought,

For prospectus and free information
consult your investment dealer or
mail this advertisement

^^

Aircrafts Mixed

the

third leading Ger¬ pressure was importantly directed
man
chemical, Badische Anilin, at Amerada, Cities Service, Gulf,
Development,
Sinclair,
was
bought by Axe "B" alone. Mission
and
the Standards of
Eastman, split two-for-one, was Socony,
California and New Jersey. Larg¬
closed out by One William Street
est seller
of Amerada was the
(20,000 shares).
Tri Group (23,700).
Cities Serv¬
Electricals and Electronics
ice
liquidated
by
Wellington,
Fidelity and Shareholders' Trust,
Bought on Balance
partly offset by a 29,100-share
Here Philips' Lamp, while still
well

GROUP

^ated^undw^ 4*500

mltment

traditional favorite among

institutional

its

to

The

Boston.

rv

Fund,

while Lazard

Well¬
Investment Trust of

and

bought

Ha

ONE OP THE

shares

(50,000

tune

The

also bought by

alone was

ington

the

Bayer

"B."

Axe-Houghton

and

I sTe'r 'was
on balance, byWellington!

Intonationaf

Mutual Fund

BROAD STREET

newly Loomis-Sayles, and others. Deere,
' Wltn
net. ^
but
Once more Schenng enjoyed the
c*t,hetfwise
it
met mostly on the other hand, which enjoyed
a
substantial market rise during greatest buying interest; its largscattered selling. There was only
selilng in Braniff and Pan Ameri¬ the quarter, was predominantly est b*iyers including Wellington
sold
can (sold by Investors Mutual to
by
M.I.T.,
Putnam,
and (60>000 newly), Incorporated InWilliam

Dow was

United-Funds Group (15,000).
well liked was Olin Mathieof which Fidelity bought 75,-

the

Fund with a new investment

14,400 shares. Eastern Airlines
found a large-scale buyer in One
of

A Diversified

GEORGE

A,iBAilEY & CO:

SVjilAND TITIE. 8td:C.,"PHILA.,lS, PA.

30

The Commercial and Financial Chronicle

(542)

Continued,

with

enterprise;

Chocolate Co.),

into National Cash Register.

came

by

European,

Blyvoors

was

Radio-TV-Movies

of Pioneer Fund.

In this group,

Split Attitude
Toward Nickels

selling

Lively interest was again shown
in International Nickel, continued

of the most

interest making it one

bought industrial, issues
the quarter.
Its largest
buyers comprised the LehmanOne William team (29,000), and
widely
during

Fund

Affiliated

(18,500).

Among

buyers
was
usually
stand-offish U. S. & Foreign. On
its

other

the

other

Falconbridge,
largest nickel

hand,
second

Canada's

closed out by the

producer, was

Funds

United

(33,625

group

shares); and was also sold by the
Group.
Incidentally, of

Axe

Ltd.

Ventures

(Falconbridge's

sold
Blue

"parent"),
Energy
Fund
2,000
shares, while
only
Ridge bought (300 shares.)

Better Investment Climate

Enjoyed by Natural Gas
Best

natural

bought

gas

stock

Gas Transmission.

Tennessee

was

Its
largest
buyers
included
Loomis-Sayles (19,000 newly) and

One William

(10,000). Also good-

interest

sized

shown

was

Natural

Consolidated

toward

Gas.

This

by a rights offering,
also
important
acquisitions
of
this
stock by One William (50,000), by
Energy Fund, and by Guardian.

was

helped

but

there

were

CBS,

on

pressure

Equipments Meet
Profit-Taking

Zenith.

sellers

CBS,

Of

the largest

State

were

Street

and

Wellington, while M.I.T. was one
of the two buying managements.
Profit-taking in Zenith, without
any
offsetting buying, was en¬
gaged
in
by
Fundamental
In¬

the

vestors,

Axe

Group,

and

others.

In

this group

panied

buying

Buying.
unaccom¬

selling took place in
Department
Stores,
W. T. Grant, J. C. Penney, and
the
high-flying Sears Roebuck.
by

Federated

Of

which completed estab¬
an initial position in it,
to a new total of 25,145 shares. Al¬
though this issue was the only
one

with

tered

net

buyers,

selling

in '' this

some

scat¬

before, appeared

as

issue.

Burroughs
was
subjected to rather heavy selling,
such

Investors

as

posal

the

deen

shares; the sole
issue being Aber¬

of this
Fund.

Heavy

You may have

selling

also

FREE booklet about

a

the

stock.

The salesman who

with

One

scientious

Mead, and 11,700 shares of

Union Bag-Camp.

Enlarged Interest in

liquida¬

Foreign

issues

was

best

bought foreign

Unilever N.

V., whose

properly
statistical

included:

AEG

Whether
resents

issues buying

substantially offset by selling;
except for U. S. Rubber where no
was

hand, Goodyear
a

On

appeared.

other
found

the

once

more

of

sellers.

preponderance

Tobaccos

tional

Securities

Series

not

or

firm

a

firm's

done

salesman rep-

a

that

is

dedicated

not

or

a

progress,

the

or

income account
A

Magazine

don't
as

forget

New

England

selling came
ties, Dreyfus
State Street,
established

Fund, while
from Group Securi¬
and
on

a new

State

Street.

the other hand,
position in Rey¬

nolds.

of

these

important

were

the

Recommends

The

fad today is to
subscribe.
Some salesmen read almost
every

leading financial publication

winners

in

the

next

year,

and

market for

and

into

the

a

sound
busi-

unless he becomes

life

some of these

serv-

most

publications,

But that's

my money.

his

of

customers.

always bring

Nickel, Aluminium
Philips'
Lamp
or
Royal
But
they do indicate a
and growing trend.

on

did the story did not know

of

crop

a

agement. He thought he did and
he wrote glowingly about it. But
those of us who live here knew

cussing

securities

column.

There is

in

men

this

difference.

a

When

Single transactions in domestic

Yoib Read

This column

the

Paper

did not wish
underwriting
publicly offered only a few

months before

the

item

in ques-

tion came to our attention,
issues worth of note include the
today's edition of the local newsI am not inferring that the story||
new
48,200 position in Bank of
paper. Here's''just a sample.
Un- was improperly motivated. I
America established by the Affil¬
der the heading,"Earnings Report" just assuring you that the fellow
iated
Fund
American
Business the
following, item appeared. "X who wrote it possibly came to
Shares
Group; the 16,000-share Company Inc. Year ended May 31 town one day and he had a two-K
purchase of J. I. .Case by State net income
$1,294,706 or $1.03 a uour talk with the enthusiastic q
Street; and the initial purchase of common
sh£re vs. $574,080 or 61c boy who ran the show. Then pos-|j
35,600 Pabst Brewing shares by a year
ago." No doubt through no sibly he walked around the plant,
Madison Fund. Among other mis¬
fault of the company, nor possibly had lunch and went out that night
cellaneous domestic issues which- the
paper, this was the truth but
to see one of our better night
were
well
bought
in
multiple certaiiily not the whole truth.
Any clubs in action. Then he returned
transactions, American Photocopy reader Who jumped to the conclu- to his office full of hope for the
motivated

was

by

-

,

,

serve

TOWARD

News

MISCELLANEOUS ISSUES
Former
subsided

interest

in

markedly

the

foods

during
Swift

the

quarter,
although
was
bought by the Scudder group and
by Affiliated and sold only by
Foundation

found

only

Fund.

buyers,

mention.

R.

Grace

de¬

Whereas Newport

Shipbuilding

proved

vul¬

sion

that

creased
look

net

42c

earnings
share

a

had

had

in-

another

ment companies' own
man

reoccur

In

the

category

of

the

invest¬

issues, Leh¬
Corp. reduced its holdings of

from the sale of that

Electric Bond and Share by 13,000

asset

again.

shares,
and
the
Dreyfus
Fund
eliminated
its
16,700 Tri-Conti-

ture

of

given

nental warrants.

Company.

coming.

During the year the
company sold a subsidiary
at a
profit of about $600,000 which was
a
capital gain that would never

nerable to multiple selling.

future of the Slippery Potato Peel

What

true

different pic-

a

earnings would be
additional fact had

if that
stated.

been

his

same

The

salesman

clients

who

gleefully

that

the

net

61c
ex-

some

tall

31

Now if you had read that glow-

ing recommendation for this speculative stock and stopped there,
might have

you

for

nanza

about

quoted.

now

after

this

this boit is

bought
twice

Only

article

what

a short time
appeared the

resigned

president of the company
"for

health," auditors
in,
and the latest
newspaper reports state that an
inventory shortage of about $1*
500,000 has come to light.
The
reasons

were

of

called

do when the annual
report went out. Moral: Read it

headline

all and

UNITED

sheet

but

in,

not

United

necessarily

Florida

and

believed

to

the

Continental

Fund

□ United Income Fund

have,

growth possibilities.

NAME.

Phrased

j Frank B. Bateman Ltd. J
National Distributor

243 South
Palm

County Road

Beach, Florida




on

,rt

...

Nev^York 5, N.Y.
New York

Y

Kansas

one

City 5> ^

care-

one

Carreau Adds Noftsker
Broad¬
way, New York City, members oi
Carreau & Company, 115

the

New

announce

is

York

Stock

with

associated

now

Exchange,

that William R.

Noftsker
them

as|!<

Peabody & Co.

whole

he

story? Such an item
only encourage the inter¬

salesman,

had

pany

to

an

or

stock owner, if

interest

secure

In

a

the

in

this

copy

was

John D. C. Towne,

com¬

of

current

the receivables and the

tory?

20 WeSt 9th Street

this

the

should

of

Principal Underwriters

•.

way

John D.

that
asset

there,

how much
in receivables,
other
assets, and what was the condition

WADDELL & REED, INC.

article

this

"Read

registered representative. He \j'aS
formerly associated with Kidd#)

column, how much cash

request from

for

read:

figure
the
net
working
capital at $3,108,714. But is this

statement.

Prospectus

this

have

Paper

would

ADDRESSCITY

Same

inventory of $3,701,024 and liabil¬
ities
of
$5,456,751,"
the
report

ested

□ United Science Fnnd

—

"A consolidated balance

of May 31 showed current
of $8,565,465, including an

stated.

□

Example

as

assets

Th« prospectus describes this Fund

in,

dig for the facts,

Quote:

□ United Accumulative Fund

should

fully and check further."

to

Another

CR0WTH

South,

man-

some things that we
to discuss when that
was

to $1.03 would have

•ntire

old

markets

Bull

good
talkers
who
temporarily
swim
with the
tide, but we are dis-

plaining

domiciled

an

story,

thorough

a

earnings had increased from

companies doing

are

Recently I came across a recommendation, by a non-member of
the securities industry, of a low
reported by others. This is not a price stock with which I was very
business for poll-parrots; not for familiar.
The company was lothe longer term at
least.
Only cated in my home town. The story
the man who makes a profession superficially read very well. But
of his work deserves the respect tb.e catch was that the author who

advised

business

thisK

the

student of his offerings and knows
more than superficial information

Funds

Fund, Lehman, Lazard,
Axe-Houghton "B" and the Adams
Express Group. To be sure, even
in the aggregate these foreign is¬
sues are still far from
rivaling, in
terms
of
portfolio
importance,
such longer established stocks as

new

build

investment

man can

in

went off half cocked and

which invests in

ln.

vestors and speculators are
buy!
ing advisory services by the score
I fill my wastebasket weekly
with
letters offering all sorts of
deals
whereby I can select the sure I

need

ness

foreign

United

Equipment and W.

ATTITUDE

Armour

inc.

tto

well,

.

and

Institutional

FUND,

?

an

And

year.

company

interest (as !
investor) has mad!
retrogressed during

beyond. True,

clientele

Dutch.

Income

recom-

the

whether

which you have
salesman or an

helpful and try to do a good job
of reporting and of analysis. Many
assiduously follow the news in others are just tipster sheets lookorder to develop his own feel of ing for subscribers.
If all these
the market, and also the securities bright boys who want to make me
Schlumberger he
is suggesting that his client rich knew so much they wouldn't

International

The
controversial
tobaccos,
standing up fairly well, found
buying interest concentrated in

is

of

Comparative balance sheets should
placed side by side ana an
lyzed.
Even this is
only a bp' i
ginning
if
you
wish
to
stud
be

acquire. No

of
Germany),
Group
Ltd.,
Borax
(Holdings)
Ltd., de Beers Ltd., Elliott Auto¬
mation
Ltd., Montecatini,
Rhodesian-Anglo American Ltd., St.

Ltd.,

Divergent

£
*

only recommending top-grade
securities, it still behooves him to
study his offerings, read and analyze the prospectuses carefully,

ations

And Tires

their

to

to

(General
Beecham

Electric

personnel

Much

work

re¬

curities distribution.

stocks, foreign issues ac¬
quired by only one management
each

that^their

safeguarded

by partners
who can
only devote part
time to this important facet of se-

interna¬

named

the

evaluate

mendations.

In addition to this and the

previously

and

sources

six buyers included five first-time

(5,000).

be

however, that do not have the

purchasers, namely State Street
(30,000), Axe-Houghton "B" (20,000).
United
Science
(12,500),
Madison
(10,000) and Dominick
other

should

irresponsible recommendations, then he is doubly blessed.
There are many investment firms,

•

Group, Investment Trust of Bos¬
ton, the Value Line Special Situ¬

Stand-Off in Rubber

sellers

is

from

Issues

One of the

conviction

customers

stocks

of these

that

servicing his clients.- If his firm's
policy is one of thoroughgoing
analysis,
based
upon
the tort -

H. L. Green faced heavy
tion by four funds.

most

firm

properly staffed with experienced
analysts is assisted materially in

Gobain, S i m c a,
Union
Ltd.,
Siderurgique
Lor¬
raine,
and
Union
Miniere
du
Haut-Katanga. Among the buyers

and

In

is connected

investment

an

William Street developed substan¬
tial interest in the paper group,

latter, the largest buyer
Wellington (35,000). Buying
selling interest was matched
in
Montgomery Ward and bigearning
Spiegel. Scandal-ridden
was

dis¬

40,700

of

buyer

Mutual's

positions in

tional

Retailers Elicit Some

-V-n^.%

■

Read It All and Well

Group, the latter establishing

new

Twen¬

Lorillard and Reynolds.
On the
other
hand,
selling
moderately
Largeinterest
continued
in
stratospheric IBM, re-split during outweighed buying in American
Tobacco
and
Liggett & Myers.
the quarter. By far its largest
single' buyer was ^Investors Buyers of Lorillard included Na¬

Mutual,
lishing

Tri

tieth Century-Fox and sky rocket¬

ing

D

'

0

sale of its

pillar Tractor, whose seven buyers
including One William and the

contrasted with

first-time

Office

1959,

2,200 shareholding by State Street.
A well-bought issue was Cater¬

and of

fair-sized interest

in United Artists

BY JOHN

the only transac¬

buying 25,000 shares of Container
Corp., 50,000 shares of St. Regis,
5,000 shares each of International

interest
in liam team and Wellington.
evidenced by
a Mixed Attitude Toward
65,000-share purchase on the part
Continuing

Mines.

6

Securities Salesman's Corner

progressive Consolidated

tion by a fund was the

Madison
and Of this issue, M.I.T. sold all its
shares,
and
Investors
and Affili¬ 89,400
ated the sole buyer. Madison also Mutual sold 43,100 shares; buyers
closed out its holding of Dome including the Lehman-One Wil¬
elimination

American

In

seas.

Foods (which this week completed
the acquisition of'the Merckens

As Bull Market Rolls On
mining

Thursday, August

.

.

namely Lazard, Dreyfus and Over¬

from page 29

Funds Retain Caution
gold

.

On the

Mr.

tions

of

should

be

answered.

de¬

brief illness.

&

that

vice I

velopment Bank,for Puerto R]C°'I
passed away August
3 after |

inven¬

those payables,

Jr.

Towne, Jr., 52,

president of the Government

liability side what
to whom, in
what amounts, for what?
These
are only a few of the basic
ques¬

were

C.

Towne

president

of

had

Co., government

ers

and,

been

a

vce

Lanstofl
securities dea

Aubrey

G.

prior to that, an

olficer |

Guaranty Trust Company.

(543)

Number 5370

190

Volume

31

The Commercial and Financial Chronicle

. . .

Security Transactions by the 86
Investment Companies During

Periods March and June, 1959

End of Quarterly
%

".■{i

-

i-V-i$. j.

'

,

•

■'

• •

^

Funds:

Open-End Balanced
American Business Shares-——
Axe-Houghtoh Fund A.'iL——•
Axe-Houghton" Fund B^W-V—

3,465

Axe-Houghton Stock Fund...
Science & Electronics——
Eoston Fund
Broad Street Investing—.
Commonwealth Investment

Eaton &

Group

Fund

Trust—______

Mutual Fund
Massachusetts Life Fund——
—
Mutual Investment Fund...
Z
National Securities—Income __——
Nation-Wide Securities ——
—

Fund—;.—V—
—Putnam (George) Fund
r
Scudder, Stevens & Clark Fund..—
Shareholders' Trust of Boston
___
Stein Roe & Farnham Balanced Fund
England

Line Fund
——
Value Line Income Fund—
Value

74.7

§74.0

2,391
19,153
17,510
6,828
3,553

19.9

19.7

67.1

57.8

H30.6

$64.7

$66.7

1.5

6.2

■

10.8

23.6

'

86.1

87.7

23.3

11.0

6.0

2.9

70.2

70.7
72.7

24.7

23.4

70.0

72.5

531

422

306

4.1

349

5.3

13.0

22.4

20.7

65.1

4,458

4,328

3,239

2,071

12.5

66.3

26,172
1,439

16.8

25.3

22.1

58.9

61.1

4.1

17.7

17.0

76.3

78.9

15.8
V

A:

446

6.0

1,513
26,421

5.3

468

6.5

9.8

9.6

84.9

83.9

1.8

tf33.3

1f32.8

.$65.6

$65.4

4.3

4.6

16.9

15.0

78.8

80.4

6.8

8.1

7.3

82.6

85.9

1,006
17,424
2,620

9.3

25.6

23.3

16.0

17.6

58.4

59.1

5.3

4.7

28.0

26.2

66.7

69.1

619

5.3

2.3

23.0

13.6

71.7

84.1

i.i

v

v

4.6

1.8

7.2

8.4

88.2

89.8

8.0

6.6

33.5

35.7

58.5

57.7

18.2

15.6

16.8

22.5

65.0

61.8

4.7

4.2

24.0

23.7

71.3

72.1

3.6

1,390
2,212
2,395
8,217
5,739
4,345
7,238

7.0

29.1

26.8

67.3

66.2
62.5

.

3.0

12.9

28.4

24.6

68.6

16.4

18.4

21.1

20.0

62.5

61.6

915

110

813

109

2.462
2,922
70,737
1,309
1,335

1,810
1,693
51,322

2,462
2,477
27,585
1,040

1,810
1,589
26,216

•

7,510
6,515
2.463

1.1

6.8

2.3

2.9

96.6

90.3

741

2.3

3.6

9.4

6.7

88.3

89.7

11.4

11.6

24.3

24.4

64.3

'64.0

3.4

3.4

41.7

43.6

54.9

53.0

384

6,789
70,597
1,155

7.7

22.4

21.5

70.6

70.8

283,962

None

None

97.4

98.4

0.4

89.2

89.8

55,913
2,871
10,736
5,109
4,946

6.0

8.6

0.7

0.6

93.3

90.8

1,954
10,976
2,970
3,835

21.7

20.4

None

0.2

78.3

79.4

1.4

0.8

97.2

97.2

542

392

41,695

7.2

0.4>

2.0

5.0

6.0

4.7

4.1

90.3

89.9

2.8

1.9

None

2.4

97.2

95.7

15.5

14.6

None

None

84.5

85.4

39,986
9,032
24,627

1.6

13.9

None

None

98.4

86.1

17.15

16.0

None

None

82.85

84.0

70

0.9

None

None

99.4

48

0.6

99.1

1.2

2.3

2.2

96.4

96.6

o.8

1.0

0.1

0.1

99.1

98.9

4,522

4,770
6,052

1.3

0.5

1.0

None

None

99.0

201

99.5

102

1.6

None

None

98.4

1,540

2.5

97.5

1,050

4,819

Fidelity Fund
Fundamental Investors

Capital Corp
Group Securities — Com. Stock
Guardian Mutual Fund

General

Fund

:<

I

Investment Trust of

&

5.1

87.5

86.2

0.9

93.0

96.2

None

94.3

93.7

87.0

86.6

18",098

Trust
Growth Stock

20,276
5,668

5.7

6.3

None

12.4

12.1

0.6

14,270
29,103

13.0

9.7

1.4

17,553

2.3

472

926

12.3

1,156
9,336
23,167

3,082
5,421
21,016

1.1

930

961

5.2

Automation

——

"

Street—_1—

Pine Street Fund.——A

,

§92.5

87.0

90.3

1.9

None

98.6

98.1

6.2

None

None

97.7

93.8

19.0

C20.4

C17.9

67.3

63.1

579

402

459

402

2.7

0.8

0.6

98.1

96.7

5.1

2.8

None

None

94.9

97.2

8.2

7.2

0.7

0.7

91.1

92.1

11.4

7.8

83.4

86.9

2,431
11,074
38,898
1,638

6.226
16,443
36,484

5.3

2.4

76.4
97.8

1,051
7,289

1,566
1,455
2,376
8,831

2,431
11,074
38,898
1,053

76.2

6.226
16,443
36,736
1,566
1,455
2,525
8,881
118

38

118

38

12,230
1,089
1,160
26,925
3,585
7,021
10,114
2,177

11,159

12,230

11,159

119

1,089
1,142

119

2.9

21.2

2.7

2.2

None

None

766

668

97.3

3.4

0.4

96.2

95.9

3,716

0.4

3,176

3.7

Selected American Shares

0.2

2.1

3.8

96.0

94.6

72

3.3

6

6.0

1.2

92.2

92.7

13,322

6.6

1.3

12,496

5.3

4.6

None

None

95.4

433

94.7

411

3.8

1.4

0.6

0.4

95.6

98.2

545

3.2

10.4

7.6

86.3

89.2

9,446
1,932
7,243
3,705

3.3
2.8

4.5

1.2

0.5

96.0

95.0

2.9

3.1

3.8

3.4

93.3

93.5

Fund—_

1,476
8,862
1,139
6,411
3,094

Texas Fund
United Accumulative Fund—
United Continental Fund

United Income Fund

—

United Science Fund

—

Special Situations

Sub-Total Open-End

3.6

0.4

1.6

96.0

94.8

8.9

3.6

None

2.2

§100.0 "

88.9

3.676
3,263

25,032
3,202
7,021
8,900
1,893

None

87.4

88.2

219

None

219

~

11,123

3,102

\

~~

2,304

7,230

409
1

6,502
1,896
1,911
3,524
3,263
None

1,097

"l~2.6

11.8

1.5

0.9

4.4

3.2

94.1

95.9

682

597

530

329

143

6.3

1.9

92.4

91.8

336,906

5.7

1.9

379,206

257,000

367,211

317,028

243,254

6.3

6.7

10.2

83.0

83.0

595,151

10.8

547,605

Stock Funds

663,168

466,530

519,739

394,316

0.7

0.6

94.5

94.8

1,613

0.5

85.7

77.9

685

1,379
2,597

1,595

3.4

685

1,244
2,039

1,068
1,219
3,104

1,056

965

1,054
2,581

Companies:

Express,

4,737
,2,082
1,774
1,474
2,531
4,097 \
6,873
14,821
6,205
2,816

—

American European Securities:
Am er ican International

General

.

-

——^

-'

—,

Dominick Fund (Formerly NatT

Sh$tJh

.

General American Investors—-.
General Public Service/-/—

Lehman • C orjj.;' - _

V

- _ __

/ i__ /

—

_

L

FundHf_____

—Id-

Niagara Share
Overseas Securities
Tri-Continental

i—

4.6
21.6

f

4.0 ;

1.2

0.9

94.5

95.1

4.3

7.6,,

6.8

8.0

6.2

84.4

87.0

6.9.

3.3

2.8

89.8

92.0

1,972
6,149

5.2

5,246

15.0,

1.332
,

•;
.

short-terra notes where so

18,938
5,591
3,060

1.5

92.7

89.7

635

0.7

84.3

87.9

3,054

0.4

0.4

94.7

93.5

8,331

3.0

1.7

92.6

94.4

16,454

2,815
1,514
12,356
16,035

2.4

2.2

92.8

93.1

76

66

76

1

§7.9

§69.2

§72.4

1,187

1,077

1,187

7,082

5,643

$$1,050
5,742

6.1

,

3.9 r

4.4
4.8 /

"4.7

;

.

.

«

COMPANIES:

9.7

9.2

88.3

88.3

None

84.0

86.1

5,843
1,413

None

1,413

None

2.7

88.3

88.6

44,682

49,532

41,269

42,046

9.2

83.9

707,850

516,062

561,008

436,362

80,515

6.7

7.3

6.5

7.0

9.6

BB

for

preferreds (or approximate equivalents). fIBonds and preferreds
of quality classification. ^Common stocks only,
per¬
gross
assets.
ttCost of purchases.
**Procccds from sales.

gin

irrespective
cent

CLOSED-END




Minus

13

of

83.8

savings banks, etc. in New York State.
flflFormerly Pennroad Corporation, a Exclusive of corporate short-term
notes.1
c All
convertible (or with warrants).

^Estimated.

Unchanged

31

11
4

5

42
13

Net

cash,

Defensive

etc., and Governments
securities 'investment bonds

Risk securities

A3

OF ASSETS TO CASH AND
AND RISK SECURITIES

EQUIVALENT,

and preferreds)
(common stocks plus lower grade bonds and preferreds)

31, 1959

31
31

33

22

June 30, 1959

9.6
83.9

7.0%
92
83.8

100.0%

100.0%

6.5%

'

■

,

....

by

Total

7V

— —

Totals

ggOwned

March

Approx.

17

4

COMPANIES

AVERAGE ALLOCATION 3Y 86 COMPANIES
DEFENSIVE SECURITIES,

COMPANIES

11

14

.

13,983

1,514
12,356
11,813

None

675,666

Funds...

8,331

2.5

included by reporting

Balanced

$$2,983

13.9

CASH POSITION OF 86 INVESTMENT
JUNE 30, 1959
vs. MARCH 31, 1959

Funds

635

1.5

16.0

Plus

Stock

2,445
2,815

0.7

SUMMARY

OPEN-END

62

3,103

~~2~.0

other assets.
*Investment bonds and pre¬
ferred stocks; Moody's Aaa through Ba for bonds; Fitch's AAA through

IN

579

§8.4

4.9;-

,

74.953

also

CHANGES

.

8.8

-

3.3

Companies..__

Total

976

11.4

5.8 V/

622,558

Closed-End

corporate

4.8
10.9

4,679
4,153
1,715

17,286

8,178
19,365

—

v
'

IO",394

_

Foreign Securities...

company;

409

172

1,051

1,128

—

Funds

Total Open-End

tlncluding

188

None

Wisconsin Fund

Investment

*

al0,251
a25,346
al3,617

219

Wall Street Investing.——

Grand

.

895

-

476

10,170
3,098
16,826
38,778
16,515

§93.7

4,760

Stein Roe & Farnham Stock

1,987
15,942
1,748
6,493
1,893

718

13,812
5,923

§6.3

4,049

Total

723

None

Stock—
Scudder, Stevens & Clark—Com. Stk.
Sovereign Investors
V
State Street Investment.—

4,775
4,395
9,209
3,460

5,800

None

§6.1*

(T. Rowe) Growth

U. S. &

4,775
4,395
9,209
5,460

688

Norm

<

20.9

Madison

$$4,656
10,366

688

5,681
11,720

12,129
3,897
al6,826
a38,778
al6,515

Securities—Stocks

Carriers &

$$12,608
12,383
4,415

3,742

476

1.3

—

Investors

Adams

287

11,696
2,956

176

0.9

National

Closed-End

603

19,929
2,618
2.225

2,675
1,574
15,942
1,748
5,630
1,893
10,251
25,346
13,617

12.0

National

Value Line

287

all,696

9,683
1,555
23,541

2.9

Boston

Massachusetts Investors

250

151,062

None

8.7

Fund

Massachusetts Investors

236

152,528

176

6.1

—

522

3,911
47,233

3,599
1,581
1,406
8,702
49,230

2.675

0.5

Investment Co. of America.—

8,709
1,900
2,322
1,657

3,678
1,007
1,365
6,956
4,726

9,683
1,555
23,614

679

Mutual Fund§§

Institutional Investors

710

None

V

Incorporated Investors

743

13,812
5,923

9,355
2,855
18,544

'

929
517

11,875
8,924
1,275
17,953
10,745

18,695
2,592
17,358

*}Q

4,819

601

4,891
5,800
11,875
11,366
1,300
18,379
10,745

•

5,260
3,042
4,467
4,216

603

1.4

770

N.A.

209,530

al9,929
2,912
2.225
12,608
13,369

24,818

—L

——

724

N.A.

7,057
1,470
2,776
3,679
3,201
1,365
9,019
6,890
4,286
1,975
1,562
9,557
50,729

8,702
4,219
4,502
6,024
4,150
1,675
12,509

3,267
110,654

56,231

Energy Fund

Prince

976

1,914

672
.

1.6

Dreyfus Fund _—
'-V
"Eaton & Howard Stock Fund—

1,001
3,697
9,938
3,601
3,351

26.1

9.8

——

2,774
1,208
1,849
7,060
3,687
4,501
2,817

170

28.2

2.6

—___

5,865

884

1.2

10.4

——■—

1,529
4,047

1,128

0.8

235

Fund

Sales**

71.0

...

——

Total

Purchasestt

4,498
1,208
1,849
10,254
9,367
6,032
3,644

255

360

Dividend Shares

One William

71.9

§77.5

258,245

Fund
Fund

Missiles-Jets

22.1

§25.0

1132.6

Sales**

287

1,996

Vegh Mutual Fund

Lazard

25.2

2.7

.

al,529
4,407

al,128
1,525
9,399

230,577

Ridge Mutual
Bullock Fund

;

58.3

Open-End Bal. Funds

Blue

de

56.8

59.3

373

Affiliated Fund

Delaware

56.5

32.0

—-—.—

Open-End Stock Funds:
Aberdeen Fund

Chemical

31.2

§22.5

—

-

Purchasestt

22.6

.

" V

2.7

-

—

Jun.

.1,221

101,964

Wellington Fund
Whitehall Fund —:

13.0

5,616
2,381
9,157

1,132
15,495
396
1,336
18,714
2,758
1,389
3,457
. 2,639
2,793 ■"
8,692
•
2,893
926
6,014
110

Loomis-Sayles

Sub-Total

2~719

—

•

—

—

3.2

:

2.9
«.

Mar.

36.4

9.7..

Common Stocks

Total

Total

Total

Jun.

31.6

■':

i2.o

:v

"

4.3

—

652

Securities—Fully Admin. Fund

,'1'Institutional Foundation Fund.i.
Investors Mutual ..—
Johnston Mutual Fund—
Knickerbocker Fund —

New

4,168

::

'

11.9

•

4,853:;

1,455
5,528 •
4,258
9,220
750
362
25,278
1,090

Howard Balanced Fund

General Investors

3,202

2,18.^_

_/•

Axe

Diversified Investment
Dodge & Cox Fund...

3,257

,.v

Jun.

Mar.

Jun.

Mar.

Of this: Portfolio

Other than Governments

End of—:

End of———
Mar.

'

Dollars)-

Portfolio Securities

Percent of Net Assets

Percent of Net Assets

rEnd of-

—End of-

V:

June, 1959 v

-

-(In Thousands of

and Lower

Grade Bonds & Pfds.

-Preferred Stocks*

Percent of Net Assets

Thousands of Dollars

if. .. -■ /

InmtmAiti 1

vNot'Gash&Governmentst'

Net Cash & Governmentsf »•;.

•
•

April
Com. Stocks

Investment Bonds and

...

■.

86

Totals

32

(£j44)

The Commercial and Financial Chronicle

Continued from first page

As

We See

worthy of

are

who

would

capitalists, particularly in Latin America perhaps, was
often picaresque. Thus in Cuba as in
many other places
conditions have developed to a
point that they might not

It

have

otherwise reached, and a basis laid which would
otherwise not exist for such confiscation as has been so

careful thought on the part of many
otherwise be greatly interested in the

some

not

frequently

during the past two or three decades.
But the problem now is to find a
way to get these
economies on their feet, and the
populations less restive.
Merely to drive out the foreign capitalists, or even to
confiscate the wealth of domestic
capitalists, is certainly

matter.

Solution

No

The idea that

agricultural problems of any sort can
be solved by dividing large land holdings into small par¬
cels and placing them in the hands of workers who own
no
land is singularly out of keeping with the trend of
the times. Basic changes in farm techniques and advanc¬
ing technology in general are rendering the small farm
quite susceptible tb failure. The machinery with which
farming of all sorts is now done is efficient only on larger
tracts and the equipment necessary to the operation of a
successful farm is expensive. Much more
adequate train¬
ing and a great deal more capital than are ordinarily
found among farm workers anywhere are in sine
qua non
of profitable farm operation in this day and time.
The
statistics of agriculture in this country over the
past two
or
three decades are eloquent of the
working of these
In 1920 there
1950

there

6.5 million farms in this

were

of

doubt

fact that total
1920

to

acreage in
land in farms

1,159 million in

farms is evident from the
from

rose

1950.

956

million

acres

Later figures are

not

available, but it may be taken for granted that no great
change in the trend has occurred. The size of the average
farm has

greatly increased, and it is known that

a

very

large part of the subsidies paid out by the Federal Gov¬
to farmers with very large operations. Nor
do these figures tell the full
story. There has developed
in this
country a sort of professional farm operator who
owns but
little, or perhaps none of the land he cultivates.
They simply operate the farms of half dozen or so owners
who find it more
profitable to have their farms operated
in this way than to
try to keep going on their own with
small acreage at their
disposal. Doubtless conditions in
Cuba are different in
many respects from those in this
country, but there can be little doubt that the same
principles apply there.
ernment goes

that of Mr.

only in agriculture that programs such
Castro have failed in the
past, are failing
continue to fail in the future. Of course,

today and will
Mr. Castro is just another dictator
of those who have been

for

long while past.

a

to add to the

long list

having their day in Latin America

So far

as can

be learned he is bent

confiscation (or the equivalent) of the
property... of

upon

him who hath for distribution to him who
hath not. What
he cannot seize or distribute is the
ability, the energy,
the know-how, and often even the

-

capital of those who
have succeeded in
contributing to the economic welfare
of their
country. The fact that so large a proportion of
the property seized, or to be
seized, is foreign owned

renders
gram
in a

easier

for

of confiscation,

him

to

obtain

support for his pro¬
but the fact that his
economy is

relatively large degree built

makes
more

it

his

present

course

the

deserving of failure.

foreign capital
likely to fail—and

upon

more

Story

,.

should

have

been

lation have neither the
capital

nor the constructive
ability
replace foreign capital and
foreign leadership in the

development of
populations.
that

so

eral

their

or

in the

service of

as

a

their

And, strangely enough, it is in this milieu

many proposals are made for "loans"

Government,

ment

resource

means

or

sponsored by

by the Fed¬

the Federal Govern¬

of

promoting the economic welfare and
industrial advance of backward
countries! It appears selfevident to

that the solution is not to
be found in this
approach, any more than it is
by trying to buy good¬
will with lavish

be

made.

has

it

be

conceded

that

'

in past
backward areas.

It

was

rate of return had to
be in
such venturesome
more

are,
Were

or

that

but natural that

a

high

sight before capital would enter
undertakings. It was also doubtless,
less inevitable, human
beings being what

advantage would

not

be

they

taken

versed in such matters.
purchased with

of

the

natives

Few Manhattans

strings of beads, but the attitude




have

we

no

idea, but

who
were

we

f

to
or

Thursday, August

.

6

ket,

the
Federal
Open
Committee formally
a

think

who

Market

resolved

make this
I

1959

has

nearly

studied

everyone

these

matter*

would agree that the
bulk of

eral/Reserve
conducted

operations

in

Fed*

must

short-term

ties; that necessarily
ly^in Treasury bills.

be

securi-

larpp7

means

shortl

The

term sector of the
market is

the

to

continuing practice.

that

where

greater part of the volume
of
trading occurs.
Dealer posi¬

all

tions

are

characteristically

and

understandably
of

concentrated
issues.

shorter

tnese

view

ing

should

extend

short-term
whether

area

not

or

regular

our

in

Differences

whether System trad¬

on

outside

the

hinge

upon
small part of
and

some

buying

selling

should be done in the
longer term

;

area.

To

Continued from

first

appraise

viewpoint,

page

this

difference

need

we

first

to

in

con¬

sider the basic

economics of Sys¬
tem open market operations.
Fed¬
eral
Reserve operations in
gov-

Market for U.S. Securities
And Open Maiket Operations
we
encourage monopolistic
tices or administered

prices

few

would

advocate

interference

with

contrary,

would

our

distort

the

?y'n£.

^erfere

everyone

such

injurious

are

of

use

market

nearly
that

agree

ments

the

general principle. On

process as a

the

government

the

progress,

freDjZrZCuJL only when
rS
free markets

at

their

sel large blocks of

single

into

millions

of

the

run

the
the

arise

Despite

absence

of

assurance that a given purchase will .be followed by an off-

setting sale, dealers quote bid and

l% ,°Uand range down
^ pdce, of
bonds

to

XaPt nn,tie'a°d TrtHiJSn*? onei^«S of 1%
make
it
difficult
to
ury bill yields.

discern

whether

markets

in

are,

on Treas-

tioned
to

as

observers

whether

will

disagree

an

appropriate degree of competition exists in particular

markets

and,

if not, as

to

is

corrective steps, if any, it
appropriate for government to

Tf

the

nnlieieo

feXi
stabuftv
staDiiity,

thev
tney

the

the

if
and

able
able

Tnd

goods
gooos

efficient

mar-

most

are

cerned

with

immediately
have

we

r°_ph^for
responsibility
and

because

main

foster

con-

direct

ue
some

markets,

represent

the

through which the
which
policies to

financial

growthand

t0 examfnf the Preliminary

stabiUtv

must

pass"

se-

curities market
We

would

provements

be

may

hope

in order.
these im-

that
be

can

made

ity

and

through

oP/ration

with

voluntary

various

We

Government

market

about how to accomplish desirable

improvements after

have

we

,

especially

concerned

with the market for United States

Government

With

securities.

a

Federal deot of $285 billion, Government
and

securities

important

folios

of

are

asset

common

a

the

in

portfinancial in-

businesses,

the

functioning

mechanism.

of

We

rountrv

to

ket.

From

the

financial

our

are

hayp

fortunate
oiipii

o

in

mar.

^tandpojnt o™the

Federal

Reserve,

it

conceive

of

regulaposition of the

Hon of the

the

raciiuy
facility

hard

to

throu^'wMch to°c<Midurt
tnrougn

market

open

is

effective

reserve

wnicn

to

operations

conduct

of

large

aenitude
magnitude.

The

There jg
..

iu

„

of

this

are

market with

encouraging in

was

of

results

pointed

the

the

day in

an

are

in

on

of

c..a..6.= ...

the

the

„

not,

as

ment.

I view it, lead to improveThat change would bejthe

enforced conversion of the present
over-the-counter

dealer

market

into an. organized exchange

July

to

24, huge

carried out every

orderly fashion and
c.annot

fail

to

at

mves-

be

im-

mar-

change
or

even

in

the

study's

findings.
On the other hand,
efforts on the part of existing

any
or-

ganizecj

exchanges to extend or
strengthen the facilities now made
avajiable to buyers and sellers of
government securities should

cer-

tainly be encouraged. There is no
why better exchange facil-

reason

available

for

-

investments

to

making loans
paving

or

off

8

debts;

(2)'

They affect the volume of

securities

available
for
trading
investment; and
(3) They influence the expectations of professional traders and
investors regarding market trends.
and

Of these effects, the first is by
far

the

most

^cTionll

our

important

Unde-

banking

reserve
additions to
or

oVstem

subtrac-

g^om

have

cerves

multiple

a

COntractive

or

lending

expansive

effect

bank

on

investing

and

power.

Svstem holdings of securities will

tend"

to
be
accompanied
by a
change in commercial bank portf0ii0s
0f
loans and
investments

times

ceveral

Unlike

large

as

other institutional investors,
commercial banks maintain goy
^ny

ernment security portfolios with a
wide
maturity
distribution a -

though the largest component will
chort-term

securities.

+he major effect

Hence,

market prices

on

and interest rates will result from

'anions fubsiquJtly

taken

by commercial banks to expand or
portfolios, and

rontraot their asset

ine

fmpact
imsiu

wiil
«...

distributed
'

be

would not prove to be

the

on

securities in the
market, substantial System purchases or sales of short-term seavailability

of

curities

exert

ence

the market supply.'

on

lntiu-

minimum

a

For

most of the $35 billion
of bills outstanding is in the hands

example,

On the other

of potential traders.

hand, much the largest part of the
marketable longer term issues is
in the hands of permanent investors.
Current trading in them is
confined to a very small fraction
of the outstanding volume.
For
this reason, the long-term area Oi
the market shows greater temporary

reaction than the short-term

help- area to large
ld#d °rderS'
bY the present dealer maiket.
Cann0t

purchase

a

sale

or

Offset Long-Term

Another change affecting the
£jov0rnm.0nt s0cuiiti0s msrk6t trist

Purchases
Ctfcf^no

has been suggested relates to Federal Reserve participation m it,
an? Plains in particular to the
e*ten«longer

? «?cnlRTo™ SSion
7mt

of this suggested change
encompassed

is

is appro-

not

by

a

matter

Treasury-

Government

1951, the System's

day-to-day trading in

government

SSStSn
extensive
tem

of

open

Sysmar-^

not

^er l ^

term interest rates by System p_

chases of bonds and to offse
inS

reserves

on

sales

would

of

holdings

shift

amount from

j-0 short

f°lio

by accompany-

short-term

of

by

a

ones.

corresponding
securities

This process

consisted

term a.ecuBties..

issues,

participant

long-term

continue until tbe

re-examination

operations Jn the

to

rates

produce real difficulties, H an atfn
inwer longr

tempt were made to

market

Securities

Since the Treasury-Federal Reserve accord in

^ / ' "rn nf interest
Jty !Pa'ter" °f ™e™st

effect

System operations in Short-Term

summary

available

small cost to ultimate

of the ,.;Jtors..,wOne

study

otherwise
banks

govern- throughout the market.
ment securities market that would
With regard to the effect

the
Treasury Federal Reserve study

our

many ways. As

made

Committee

transactions

very

out

study

had

,Me change in

Qne

Js.u' ?

pnate here, for it

initi
initial

fundamentally

the organization of tne

efficien^'market1 fo^^vernment ities
secudUesT^ otwiously needed^for f«>
tjqiq

and

an °PPr»> co"siler Cr/ the

practicable are set forth
joint
statement
on
the

„

are

co-

however,
a Possibility that further authority
wgnt bet"ecessary a or desirable,
\ye expect to have
clearer idea

The reasons why this
would not be constructive

for

within

the framework of existing author-

ket.
Market

three

influence

outstanding

r/ do^ uggest thS "me 'it' ^ans Mn^«M
provements in the government

Re-

markets,

these

they

channel

government

oppor-

in

financial

both because

of

an

Naturlllv f?U/ ]ust completed.df the staff
the+ findl?gs
atuiany,
study

services
services,

ana

Treasury and the Federal

serve

to

through

^k!rforZan0ntvp^

111

the

be
be

economy

of

In

ftiUv

growth

must
must

mechanism

to

to be

promoting

n

permeate
the

follow

we

Ire

financialfield

"

Those who have had

mfght°nrne!sfnablyCieexpectS

few

a

of

(1) They change the volume of
reserves

member

ask PJief, tha.itypically h?ve

a.
spread of less than one-quarter of

situations

we

own

any

best

that they
distribution

economic

or

and

Frequently,

transactions
dollars.

to

equitable

risk, to buy
securities.

develop-

resources,

with

initiative

yields

in

different ways:

pressed by the fact that there are
dealers who stand ready, at their
own

securities

and

securities

,

prac-

pricing, and

t

e r n m e n

....

a

good deal of exploitation
generations when private capital

occurred

went into

The

interest in the matter.

us

outright gifts.

Let

convert

.

expected.
Foreign capital no
longer flows readily to these places and the native
popu¬

to

to

it has to be solved if real
progress is
Castros seems to be without ideas on

Securities

Of course, similar "movements"
have bqen
underway
in Latin
America, and for that matter in many other
parts
of the world, for a
long time past. The results have been
what

problem is to be solved

-

Old

found

certain that

are

Tlie

An

be

must

reasonably energetic and capable busi¬

what

But it is not
as

means

large part of the conversion will without
to be done by the natives themselves.
Just

have

how this

were

reduced

A

nessmen.

country;

only 5.6 million; and in 1957 there
only 4.9 million. That this decline is not merely a

result

in

were

Some

answer.

these natives into

factors.

in

the

not

seen

...

could

Syste^ P°nt

largely of ionB
APcording1^ ^

33

(545)

Number 5870

190

Volume

. . .

The Commercial and Financial Chronicle

a

long-term yields, without
would be
to increase the over-all liquidity
of the economy. Not only would
the supply of short-term issues
in the market be' increased, but
also all government bonds out¬

the

II?lpdollar.
™aintain a stable value for
the

put

supply in

The

practice or technique

as

rate

same
some

each

the Federal Open
light of

by

year

recent

with the pres¬
ceiling, would
in reaching the
merely to issue
of short - term

experience. Exceptions can

hf' and have been, authorized by
situations where

the Committee in

either

Treasury

the

or

nnu

ing any such action.

critical

a

an

been

has

at

growth

Population

sector.

1.7%

of

rate

a

per

year.

Industrial

production,

be

to

This Week

stock

influences.
growth in

of

free

is

price

many

dollar terms can be
misleading,
not
only
with respect to what the economy

aggregate
seriously

Sa^ ^0r such variations.

other

words,

guidelines

how

to

as

we

may

general price level such as
in the months after the
outbreak — even though

in the

that

the market area in which
to apply this practice flexibly as
operations are conducted.
In
we do all of our practices in the.
the longer term area of the mar¬
administration of monetary policy.
ket, dealers, traders and portfolio
As I have stated to
this Com¬
managers are particularly sensi¬
mittee on other occasions, flexi¬
tive to unusual changes in supply
and demand.
One important rea¬ bility is an essential ingredient
of our entire reserve banking op¬
son
is that long-term
securities
erations
when
reserve
banking
are subject
to wider price fluc¬
loses flexibility, it will no longer
tuation relative to given changes
be able to do the job that is re¬
in interest rates than are short-

in

up

the figures on
Product
quite

The increase of 15%
current
dollar value of

handsomely.
in

the

1955
to 1957 was only half of what it
seemed to be because it was in¬
general price increase

flated by a

of

entire

history,

this economy has grown

Revised Measurements of

It is because
I, for one, want to do everything
I can to keep it growing that I
urge the maintenance of free mar¬
kets and reasonably stable prices
gering magnitudes.

securities
are
aware
Economic Growth Announced
System holds the econ¬
Before
concluding
my
state¬
as
primary objectives of public
largest single portfolio of
ment, I want to mention one en¬
policy.
government securities.
They also
tirely different matter that has
know that the System is the only
special relevance to the broad
investor
of
virtually
unlimited
scope of the Committee's interest.
means.
Consequently, if the Sys¬
That
is
the
measurement
of
tem
regularly engaged in open
market operations in longer term growth. As you know, one of the
frequently
used
indicators
of
securities
with
uncertain
An underwriting group headed
price
growth in the industrial sector has
effects, the professionals would
by Cruttenden, Podesta & Co. is
been the Board's index of indus¬
either withdraw from active trad¬
offering publicly today (Aug. 6)
trial production. One of the great
ing or endeavor to operate on the
50,000 shares of Superior Window
lessons we learn from the com¬
same side
of the market as they
Co. 70-cent cumulative converti¬
believed, rightly or wrongly, that pilation of this index, which we ble preferred stock, $8 par value,
tiy to do as carefuly and com¬
the System was operating.
at $10 a share. In addition, offering:
petently as we know how, is that is
being made of 125,000 shares
the
mere
matter of
measuring
Could Unstabilize the Economy
of Superior Window class A com¬
If the professionals in the mar¬ growth is a very tricky thing.
mon stock, par value
10 cents, at
the

corresponding date in 1958,
it was 4.61%, or 1.27 percentage

former,

the

Federal

As the structure of the economy

a

keeps

price

bining measures of its many parts

ble into class A common

single index cannot be done
despite our best efforts, without

the

the

yield

long-term

administrator

government

rities market.

If

of

secu¬

they did the lat¬

into

changing,

the job of com¬

a

rate

basic

class A common

They are partici¬
push, and several
weeks ago we witnessed the U. S.
bill rate going across 4%, an "ap¬
palling" development for the soft
money advocates in Congress and
elsewhere. Further, it is not im¬

stock at

of 2Vz shares of
for each share of

total

encourage

demand

forces.

potentialities

of

supply and

The

such

dangerous
develop¬

a

ment is illustrated by the specula¬
te "ild*uP and liquidation of

growth rate in the sectors covered
by the Board's index has been
materially greater over the past
decade than has appeared from
the

unrevised index.

'

described

Treasury

-

detail

in

Federal

in

Reserve

study.

Either

of

these

effects

would

im^meate, and tend to be disturbb

A

the econmy, such open market
operations

long-term securities could have

J.,*

°PPosite

u

to intrude in the
adjustment

ere

result.

In

other

^ the Federal Reserve

dir<w? ^ and demand in order
^tly
lnfluence prices and
as

v

on

v

i

long-term

that

data

we

ernment's needs.

securities

or

duct

one

other
task
ing

of these in 1947, and an¬

of

as

1954.

immense

The

reapprais¬
the results of these censuses,

and

of

digesting and

all

refitting

then

the

of

lmP°rtant

Fed^r J?ubIic discussion of the
ofReserve's present practice
atinn
^ ulng °Pen market operrjljp s m shcrt-term securities imSystemVGemS t0 me' that the

intractthfc
doctrinaire position on
internrpf
This is not a correct
done
w
of what we have
after
,ad°pted this practice
and pf fif
study of experience
tions
,!
effects of our operaupon
the
I assumed an

ablp

j




and

the

There

toward
have

be

stock,

$8

par

higher than the figure shown by
our
unrevised index for June.
Some
of
this
difference
re¬
sults because we are now able to

The

include, with appropriate propor¬
tional
weight
alongside
other
items, more of the fuel and energy
production that has been going on
all the time without being repre¬
sented
half

of

results

in

the

the

index.

More

difference,

from

than

however,
in

improvements

measurement
cluded

of

presently

industries.

movements

of

the

The

in¬

monthly

revised

and

^

the

nine

to

rates

present

some

It

as

go

we

average

by

along.

payout

on

operating earnings is 55.6%, which

divi¬

surely leaves room for some
extent

the

Manufac¬
Hanover-Ir¬
ving. Probably the basis fpr the
latter is merely the juxtaposition
of the two headquarters offices
on

lower Broadway.

the

that

equal

to

275,000 com¬
and class
stock to be outstanding
the

share

based

bined

shares of class A

B common
upon

on

completion! of the financing.

Form Black & Co.
(Special to The Financial

Chronicle)

There

Building to engage in a securities
business. Lawrence S. Black is a

principal in the firm.

been

has

a

far¬

the New York banks to move

ther

It is not that any

uptown.

headquarters office has left the
general area of the financial dis¬
trict, but rather that integrated
branch offices have sought uptown
sites at which to establish a large
portion of the bank's operations
and personnel. With the trend of
general business headed north on
Manhattan, it is, of course, natural
banks

the

for

their

follow

to

customers.

Sip'n Snack Slock
Now Being Offered

[

Investment Bankers of America,

of Washington, D.
C., is
presently offering a new issue of
200,000 shares of common stock
(par 10 cents)
of Sip'n Snack
Shoppes, Inc. at $2 per share.
The company is engaged prima¬
Inc.,

rily in the operation of snack
counters,
bars
and refreshment
stands in various retail stores and

amusement centers, in
Delaware,
Indiana,
New Jersey and Pennsylvania.
The net proceeds will be used to
repay
loans,
for
purchase
of
equipment, and for working capi¬
sport

and

Connecticut,

tal

other corporate purposes.

and

Chappelle Branch

New

Chappelle

office

branch

Commerce

the

in

under

Building

has

Co.

&

— Frank
opened a

Ala.

MONTGOMERY,

NATIONAL

direction

the

AND

of

GRINDLAYt#

LIMITED

BANK

Some of these were shown

Amalgamating National Bank of 1mAm
and Grindiays Bank Ltd.

ANALYSIS

1

DA

Head Office:

26 B1SHOPSGATE,

LONDON, E.CJ

j

j

London Branches:

12 N. Y. CITY

BANK STOCKS
Bulletin Available

STREET, S.W.I
*
13 ST. JAMES'S SQUARE, S.W.I
Trustee Depts.: 13 St. James's Sq.; Govt,
Rd., Nairobi; Ins. Dept.: 54 Parliameai
St.; Travel Dept.: 13 St. James's Sq.; lacome
Tax Depts.: 54 Parliament St. m
54 PARLIAMENT

13

Laird, Btssell 8 Meeds
Stock Exchange

Members

Oregon—Black &
Co., Inc. has been formed with
offices in the U. S. National Bank
PORTLAND,

Customers
trend among

banks

bonds, their in¬
vestment positions show them with
long-term

months ended May

taxes were
33 cents per

*

*

*

Banks Following

COMPARISON &

■

are

and

turers-Hanover,

31, 1959, earnings after

$91,676,

them

Among

ers.

Edgar J. Mulvaney.

dend increases.
To

re¬

this

is

degree

.securities of $611,-

471.
In

coolness
yields

some

been

because

shrinking.

been

losses.

combined debt

been

banks

corrected

150,000 shares of class B common
stock, par value
10 cents; and

enough to
revised index,

has
the

department's thought that this will

indicate that the
with the 1947-49

far

n

market

curtain

Giving effect to this offering
and application of proceeds, capi¬
talization will
consist of 50,000
shares 70
cent cumulative con¬

preferred

And

concerned.

are

probably has been no time
in recent years when the banks
have been committing such a large

hold

of

market

volume

and

increased

vertible

loans

rate

but that de¬

or

there

value; 125,000 shares class A com¬
mon
stock, par value 10 cents;

•

functioning

and

prime
over;

not, the banks are in
favorable position so far as rates

veloping
a

is

1959

predictions of

been

on

money

monthly
data
into these basic
benchmarks, has now progressed

resulted in unsus- P^riod as the starting point at
100, will show a level
Pnces and yields> it 165 at mid-1959. That isof around
impair the
10 points

Process.

jalousies

the ,windows,

Congress

census.

There have

5%

before

with proportion of their assets to loans.

Co.,

Window

Superior

headquarters at Hialeah, Fla., a
can
only be cross-checked in a Suburb of Miami, manufactures
comprehensive way when we have and sells a complete line of. resi¬
available the results
of
a
full dential and commercial aluminum
to month,

have to use from month

tainamay
WonM
uld

for

used

Co., and the balance
general corporate pur¬

authorized
walls.
working Department of Commerce to con¬

t0> the whole capital market.

Accordingly, instead of
as a
stabilizing.force for
in

statistical

The

Trucking
poses.

,

ine

ing class B common stock, to pur¬
chase
the
assets
of
Superior

the

in

possible that money rates will go
even
higher, for the Administra¬
tion is pushing its effort to have
the
legal
rate
on
Government
paper
lifted so that it may be
easier to finance the Federal Gov¬

bearish

would not reflect basic

still.

standing

pating

effect might be to having to make major revisions preferred.
It is redeemable at
artificially bullish or every few years. We again have $10.70
per
share plus accrued
expectations as to prices underway a basic revision, the dividends.
and yields on
final
results
of which
will be
The net proceeds will be used to
long-term securities,
■this could lead to unsustainable available soon. The nub of what
pay
off loans, purchase 300,000
price
and
yield
levels
which this revision shows is that the shares of the company's outstand¬

ter, the

that the rates
securities investments are not

on

preferred stock is converti¬

The

corresponding rate.
A further factor is

price of $4 a share.

Reserve would become in fact the
and

points higher, or nearly 40%. If
these banks can, in such a span
of years, increase volume by 44%,
and rates by close to 40%, surely
they have the makings of higher
earnings, for their operating ex¬
penses are not moving higher at
a

has

There

Day.

markably little public opposition
proposed merger.
We hear rumors of other merg¬

to this

at the

Securities Offered

the

Labor

rate of return on loans
discounts was 3.34%, whereas

and

Superior Window Go.

did

expected that the combined insti¬
tution will be in operation around

the average

omy's

ket

ment, and that of the Federal Re¬
serve.
If these are obtained, it is

1954 year-end,

At the

Chemical

the

of

Exchange-New York Trust
merger are the approval
of the
New York State Banking Depart¬

loans and on
we
have to
yearend dates for this in¬

the

use

obstacles to

The sole remaining
Corn

Now, an increase in loan volume
over five billion is a huge bet¬

formation.

Fact and Rumored

consummation

after allowing for mergers,

derived by them on
securities
holdings,

by stag¬

its

Throughout

*

*

*

Mergers:

terment; but that is not all. As the
banks do not publish at interim
dates the average rates of return

of 7%.

long-term

that

this, sizable holdings of tax-ex¬
empts are being carried by the

ing New York City banks was
$11,740,328,000.
On the June 30
quarter date in 1959, the corre¬
sponding total of loans was $16,916,920,000, an increase of $5,176,590,000, or about 44%.

Gross National Product from

world.

investors

and

puff

National

Gross

quired of the central bank in the
Therefore, trading or
market economies of
the
free
them incur

traders

does

At

losses will be
Aside from

tax offsets.

as

New York banks.

the total loan volume of the lead¬

1954,

"roll
is

the

issues of shorts

new

Also, some

rapid.
utilized

in

mid-year date

the

havior.

in the years ahead. It is no
achievement to have a rise of 10%

upon

These

over" into

probably the best, reason for the
bank
stocks' better market be¬

grow

the

portfolio positions in
a greater price risk.

been

reasonably expect the economy to

relatively

ing of governments to
short terms on which

speculative media. They
skeptics because they
could apparently find no basis for
better price levels
of the bank
stocks. But let us look at one, and
have

Korean

term issues.

ings, and, additionally, the banks
have largely confined their buy¬

to the

attention

their

confine

to

also in marking out

has done but

endeavor

we

by

years

they were not large in rela¬
securities hold¬

ever,

tion to volume of

more

Treasury

In

the bank
specialists, there have been
skeptics who have preferred

several

for

reports. How¬

in the June 30, 1959,

Despite the strong recommenda¬
tions to buy New York City bank
stocks that have been put forth

occurred

depending

Bank Stocks

—

Answering the Skeptics

is only one of the ways that
growth might be measured, but
it is a measure in real terms and

sure,

so

WALLACE

aver¬

annual rate of 3.8% as com¬
with 3.2% shown by the

goods

when

operations on the expectations
market professionals, can be

B.

re¬

on

risen at

unrevised index for the consumer

exchange offerings
appropriate, and at other
times has purchased such securi¬
ties in the market.

in

The effect of System open mar¬

of

requirements of monetary

o

goods

consumer

basis has

Crude measurements of

needs

market'

money

BY ARTHUR

pared

System, at times has been a
subscriber to longer term issues

The

Fortunately, it is not contemplat¬

of

financing

the

in

conditions

retire outstanding long-term debt.

importance

It

Market Committee in the

securities and use the proceeds to

ket

the

subject to change at any time
is formally reconsidered once

is

Treasury now, even

difficulty
result. It has
$20 billion

for

of

age

was

current operations.

of

of industrial growth over

past decade. For example, it
appears that industrial out¬

vised

and

already a serious
would be intensified.
The

interest

procedure

general

a

conduct

economy,

have no

now

adopted, not as an iron rule, but

would be made more
liquid because they could be more
readily converted into cash. The
problem of excess liquidity in

Bank and Insurance Stocks

this

total is to tilt upward

the

measure

the economy's needs

with

standing

ent

in

System,

accordance
and to

to lower

affecting bank reserves,

one,

the

of

tasks

specific

so

effect of thus endeavoring namely, to regulate the growth of

The

the

present indexes are quite similar,
that main effect of the revision

banking system.
In this review
we were naturally mindful of the

would have put itself into
frozen portfolio position.

System

New York

Members

American Stock

120 BROADWAY,

NEW YORK 5, N. Y.

Teletype

NY

7-3500
1-1248-49

Specialists in Bank

UGANDA,

Stocks

St. James's

Sq.

Government in: ADEN,

OWA

SOMALILAND PRCTT*. II ■

ZANZIBAR *

Exchange

Telephone: BArclay
Bell

Bankers to the

Branches In:
INDIA,

PAKISTAN,

CEYLON, BURMA,

TANGANYIKA,
ADEN,

NORTHERN AND

KBNB^

ZANZIBAR, UGANDA,

SOMALILAND

PROTECTORATE

SOUTH!RN

RHODKaA.

/

34

The Commercial and Financial Chronicle

(546)

Continued

unit

from page 3

for

rieties

if all

But

nation.

a

dollars

of

va¬

perform

to

are

their

appropriate functions prop¬
erly and easily and are to have
the
same
value,
they must be
freely interchangeable at the
parity rate. That of course means
a fixed gold standard and a freely

On Monetary System's Defects
And the Needed Collectives

redeemable

the

of

foundation

sound

gold monetary functions of the
ernment [italic supplied].

a

standard and redeemable currency
at the statutory rate of $35 per
fine ounce, the rate that has prevailed since Jan. 31, 1934.

Gov-

is

It

the general rule of leading countries to use gold as a monetary
reserve and not for the purpose

convertible

and

cur¬

That is the system that is
urgently needed in our country.

rency.
so

How can this most important
change be effected?

(7)

Informed, thoughtful, and care¬
Practically everything done by of redeeming national currencies."
France, which ultimately ruined
The emphasis in his statement ful men need to persuade the
and
Secretary of the
her franc, destroyed her Fourth should be noticed with care and President
Republic, and brought dictator- concern. It is the convenience of Treasury to insist that Congress
ship, has occurred, or is occurring, ,the government, not the welfare promptly make our currency re¬
in this countVy. We have not yet

embarked upon the course of

re-

peated devaluations indulged in
by France; but there are powerful forces agitating for that very
serious mistake also—particularly
the gold mine bloc which would
that

use

anti-social

manpulation

to

monetary

During the first 30 years of the
downward

which covered the 44/2
from the outbreak of the

franc,
years
war

French

the

of

course

1914 to the reforms

in

insti-

tuted by

General De Gaulle at the
end of 1958, the pace of depreciation

relatively slow

was

is

That

com-

as

the

argument of

-

mg

depreciation
collapse of
the
Fourth Republic.
France, during
the last dozen years before the
end of the Fourth Republic, was
enjoying a business boom of sorts
with its
subsidies, escalator
in

the

the

effective

the

easiest

people

power

for

him

have

to

the

over

provided by

pUrse as js

powers

an

public

redeem-

a

If

people had

our

redeemable

a

could demand gold

and

eurrency

when

they are disturbed by government action, our government's
to dictate or to dissipate
people's
wealth
would
be

powers

the

sharpiy

limited.

A

does not dare to

unduly when

a

government

disturb

rlncv

unfw

hold

not that

redeemahlP

their

mr

eovSnment fn
^

Reserve

banks

oer-

stacef such

®J""?}

^
»

The im-

bh°]demandlnsTS^

®
,

a

people

a

nongold currency

father

the

fact

that

if

the

ratner, tne lact tnat, it the

of

average of the yearly percentages

declining to a
level of .4% of its mid-1914 value.
}
The parallelism between
the
was

ZwinS K1

d ™ f

"

of

use

the

of the

use

? decade 1923-1932, the

?f puf monetary gold stock drawn
mto domestic circulation was 2.52.
French practices and ours should The
highest yearly percentage
be a sobering lesson for us; but was 3.56 in 1932; the lowest was
apparently it is not widely so rein 19^0.
garded. The persistent and relatively slow depreciation in our
dollar from 1939 to Apltil, 1959,
has raised

our

index of wholesale

50.1 to 120, thus
decline of 58% in the
purchasing power of our dollar
during those twenty years. No
money doctor
can
predict with
any scientific accuracy the point
at which a sharp acceleration in
depreciation may set in.
indeed we may not go much

prices

giving

from

us

a

v

farther with

feverish expan-

our

siOn, distortions, and government
management before we find ourselves in

economic contraction

an

which may be

precipitated by the

tangling of the intricate economic
ahd

government

forces

which

characterize

our
economy.
The
apparently widespread assumption

that

we

nomic

tion,

can

escape

severe

a

eco-

readjustment, or contracbecause we employ an ir-

redeemable currency, instead of a
redeemable currency with the restraints

solid
the

it

exercise, has
The history

can

no

foundation.

uses

—for

our

contraction

severe

of

eco-

1873-1878—

provides evidence of

opposite

an

nature.
/Kv

our

government in respect to redeemable versus irredeemable
currency

have

m

today

the

is

that

it

should

powers

which

currency

places

ruinous

irredeemable
its hands. This

illustrated by
a
statement recently made by an
offlcial of the United States

Treasury.

Said

believe

feasible
that

the

T"e essence of a good
rency system
A good currency for

or

is

he:

that

"We

do

redeemability

desirable.

most

of

These

needs

minor

We

important

+£<5 1?Jto serve

not
is

believe
use

of

as a reserve for

the^domestic and international



type

a

us

that

cur-

ard

Pres¬

redeemable

and

a

would

bank

paper

money,

and

deposits.

Each variety
of
has its particular func-

tions, Virtues, and limitations,
The

mbney

of

most

universal

refund

to

it

than

interest

lower

compelled to

was

Confidence in future prospects of
business increased, and by March,

1879, this country was on its way
the period of business ex¬

into

pansion known in our history as
the
period of gold redemption
prosperity.
.Such is the practically uniform

experience of nations when they
eliminate the poison of irredeem¬
able
currency
and
institute
a
able currency.

of redeem¬
It is an experience

which

not

healthy

bloodstream

should

the

control of the uses of

proper

There is
ular

such thing as a pop¬

no

uprising in behalf of a sound
The masses do not or¬

currency.

ganize nor vote to relinquish the
drug of irredeemable currency.
Such reform comes only from the
top down. It is a job for informed,
experienced, and tough monetary

who understand what
they are doing and can explain
to the people why an irredeem¬
able currency is a contaminated
monetary bloodstream in the

surgeons

and why it must be re¬

economy

placed

by

be

denied

our

people.

the nation is to

be

healthy and strong.

Public

American Asiatic Oil

Corp. Stock Offered
Wellington Hunter Associates of
Jersey City, N. J., and Gaberman
& Hagedorn, Inc. of Manila, Phil¬
ippines,
are
offering
publicly
20,000,000 shares of common stock
of American Asiatic Oil Corp. at

iy4

cents

The

share.

per

States and to

the United

obtain American technical help in

the

search

oil

atic's

filed

million

a

in

stated

company

is

which

concessions,
than

more

with

S.

the

acres,

total
the

in

Founded

Asiatic

Oil

American

1957,

is

of

one

most

the

fered

per¬

formed, the general public re¬
sponds enthusiastically to the new
breath

is

basis for

new

their

in

be¬

currency

invigorating experience.
They also have renewed confi¬
dence in their government. One
comes

an

is that it

reason

the

has restored

principle of integrity to their cur¬
rency. Another reason is that the
power of the purse is returned to

ploration
with

company
to
E. C. in the

the

S.

States.

register
United

their

.

company's total capitaliza¬

The

is

tion

ized,

500,000,000 shares author¬
of which 314,123,000 shares

were

outstanding

under

of

as

April 30,

be

to

expected that the
people saturated with the drug of
irredeemable
currency
will
be

genuinely frightened and will re¬
sist the necessary surgery with all
the arguments and devices they

employ. But once the opera¬
is over and they find that
their paper money and bank de¬
posits are as good as gold, they

can

tion

be

can

they

expected

to wonder

afraid

were

redeemable I.O.U.'s
to

promises that

(Special to The Financial Chronicle)

company

secondary
stabilize

is

to

and to augment the

The

A group
and
led

redeemable.
bank
ordinarily more con¬
gold, the demand for
expected to be rela¬
as is illustrated/ for
by our experiences
decade 1923-1932.
in¬

psychological problem

volved in the attitudes of the

mass

of
people before and after
demption is illustrated by our

periences

in

of

more

investment

Bankers

by

than 350 banks

banking

Co.,

Trust

Chase Manhattan Bank,

houses

The

The First

the

to

stand

when

the

at

the

institution

out gold

Mr.

Tappan

day.

Few

much

of any man or government for its
nature or value. An ounce or a

out

was

more

turned

of

on

did

appear

of

line

that

people appeared, and
gold than paper money
in at

the

bonds, series O, priced from a
yield of 2.75% for bonds due Aug.

dollar price of 100 for

bonds due 1973-75. The

began to
January 2, 1879.
not

an

a

$50,000
the

August 4

1, 1962 to

government

pay

acceptability
and
freest
from
human manipulation is gold.
It
does not depend on the honesty

head

issue of $120,000,000
Commonwejalth of Pennsyl¬
vania 3y4, 3% and 4.60% serial

on

the 3%%

1879, a banker in
New York—a Mr. Tappan—is re¬
ported to have stated
(in May,
that he would pay

Co.,

and
of

Bank

re¬

redemption in

1878)

Corp.

&

ex¬

Some

1878-1879.

before

working

capital of the company.
.Incorporated in June 3952, Voss
Oil Co. is engaged principally in
the exploration for development
of petroleum
reserves in north¬
eastern Wyoming.
At the

conclusion of the finan¬

capitalization of the com¬
pany will consist of $1,809,842 in
promissory notes; 1,231,779 shares
of Class A common; and 814,429

cing,

Associates

common.

the

in

group

P. W. Brooks & Co., Inc.;
Grace & Co.; Coburn &

are:

Sterling,
Middle-

brook, Inc.; and Granger & Co.

Joins Walston Staff
r

•

(Special to The Financial Chronicle)

is

DENVER, Colo.—Irving A. Sobol
now with Walston
& Co., Inc.,'

Deriver U.

National Center. He

S.

formerly

was

with

Cruttenden,

Podesta & Co.

subtreasury

office in New York and through¬

G. Becker Adds

A.

(Special to The Financial Chronicle)

CHICAGO, 111.—Arthur D. Carl¬
is

son

with

now

A.

G.

Becker &

Incorporated, 120 South La
Salle Street, members of the New
York
arid
Midwest
Stock
Ex¬
changes.

*

With Francis I. Du Pont

Moody

is
I

111.—Robert L.
affiliated
with
&
Co., 208

now

Pont

du

Joseph D. Gengler
Gengler, member of

Joseph D.
the

Bonus Bonds Underwritten

The First Boston
The<t First
National
Chicagq* offered publicly

tively small
example,
during the

produc¬

Remainder of the proceeds will be
used to pay off company indebted¬

Exchange,

Stock

York

New

passed

City Barik of New York,

be

the

July 27.

away

$120,000,000 Pennsylvania Korean Veterans'

ir¬

are

formerly

was

with L. A. Huey Co.

in¬

have

818 Sev¬

Co.,

Street, He

enteenth

why

converted

&

Drexel

can

increase

tion rates of the company's wells.

with

affiliated

now

Sudler

C.

Amos

National

gold

methods, to

recovery

or

D.

deposits

are

pilot waterflood

a

So. La Salle Streeet.

Colo. —Edward

DENVER,

And since paper money and

venient than

proceeds
of the stock will be

up

Under the program, the
will attempt, by use of

Francis

Garber

is

being of¬

net

(Special to The Financial Chronicle)

Now With Amos Sudler

proper

control.
It

the

CHICAGO,

that
brought

more

once

set

program.

1959.

vaguely,

government

of

from the sale
used to

are

speculation.

a

Co.,

•

the

only

at $1

widely-held

operation

life; the

of

confidence

as

portion

,A

approximately 1,600 shareholders.
It is the first Philippine oil ex¬

the

shares

The

Co.

&

companies listed on
the Manila Stock Exchange, with

Once

common

share was made yesterday
(Aug.
5)
by
an
underwriting
group headed by Hill, Darlington

C. The stock

E.

1,000,000

A

Company

per

prospectus

a

being offered to investors.

now

Oil

Asi¬

American

on

of

Class

shares of Class B

of the issue will
be used to buy exploration equip¬
in

the

of Voss

stock

proceeds

ment

offering

of

shares

ness

healthy bloodstream

a

free of disease if

Common Sik, Offered

of

rates

Thursday, August 6, 1959

.

.

Voss Oil Glass A

the Treasury was
at

face under irredeemable currency.

currency

good mechanism for

a

months

would

our people.
require gold, silver,

coin,'

currency

The official position of our
government

an

value in world markets, to dictate
to people in other nations by depriving them of the right of re¬
demption of dollars into gold, it
allows foreign central banks and
governments and international institutions to convert their dollars
into gold in order to maintain the
official parity rate between our
dollars and our standard gold
unit. But our people can be, and
are, forced to accept irredeemable
I.O.U.'s; and they are helpless in
so far as obtaining gold is concerned. Their appraisal of the
value of our irredeemable currency
is revealed in the high
prices of stocks, land, and most of
the goods and services they can
buy. Dictatorship in the: monetary
field for our people, arid special
privilege for foreign central
banks, governments, and international institutions, are the principles employed by our government.

meet all the needs of

„

The official contention of

select

to

should rest

Since our
have the power, without opening another, if
have
our dollar to sharp impairment in they

consist

^

(5)

need

able

demand.

the

government bonds rose,
on government
se¬

rates

curities fell, and

people where it belongs and
government does not they soon learn in f6rife way or

of irredeemable currency

example

nomic

of

men

interest

meet

to

Prices of

idential candidate who, if

credit.

abie currency.

^dSe c^e in ®he
^
®^ise care
the

franc

fails,

people with a sound and honest
currency. And upon a gold stand¬

it

the

have

clauses, nationalization, heavy
taxation, government deficits,
squandering of money, great expansion of bank credit, dissipation
of the gold reserve of the Bank of
France, and so on, while the value
its

persuasion

such

carry out his plans.
No curb bit
should be placed on him by per-

should

desires,

make

£eODle

trol. This accelerated

ended

If

such

gold

to

jje

p0wers

that

he

—

pared^ with the a^elerated ^pace \g redeemable in gold.
V
^ years
p0rtant consideration is
liberation from German con-

4

every

standard

the

in

elected,
will use all the powers of his office
to induce Congress to provide our

dictator

their mitting

increase

profits. They, and others, fail or
refuse to recognize that fixity is
a
requisite in a good standard
monetary unit.

is

our

deemable
dollar.

people or nation, that
given the prime consideration,
of

staff

its

.

group
a

was

bid of

tion

coupons,

Rated

plus

Aa

by

bonds

issue

on

a

net

interest

will

byj Moody's and A-l
be

direct

the

and general
Commonwealth

secured by its
credit,
and
the
Commonwealth:has the power to

full

Pennsylvania
faith

and

provide for the payment
principal of, and interest
bonds

levying

of
on,

the
the

ad
valorem
taxes unlimited 'in amount, upon
all taxable property within
the
by

maturing Aug. 1, 1974
are
subject to redemp¬

1975

and

tion

on

Aug.

1973

1,

and there¬

and accrued interest.
May 31, 1959, the Com¬
monwealth had outstanding $262,after at par
As

of

150,000 of general obligation
for the payment
326

been

had

bonds

of which $9,841,aside in sink¬

set

leaving a net bonded
$252,308,674. Giv¬
ing effect to this issue of $120,000,000 series O, serial bonds, the
ing

funds,

indebtedness of

Commonwealth
bonded
674.

will

indebtedness

On the basis

a
net
$372,308,estimated

have
of

of an

in 1958 of 11,101,000,
represents a net per capita

population
this

debt of $33.54.

Standard & Poor's, the

obligations of
of

the

3.40437fe.

of

cost

awarded

100.01% for the combina¬

of

by 350-Member Syn,

Bonds

General
1957-1959

rate

of

000 per

Fund

revenues

biennium

were

approximately
fiscal year, and

collections

for

the

for the
at the

$706,975,estimated
1959

-

1961

biennium, on the basis of laws en¬
acted to July 9, 1959 by the Gen¬
eral Asembly, are at the rate of

approximately

$831,956,000

fiscal year.The

1959 Regular

Ver
Ses¬

Assembly is
presently convened, and it is an¬
grain of fine gold is an ounce or newspapers after three days as an
Commonwealth and excise taxes ticipated that additional revenuea
grain of fine gold throughout item no longer newsworthy. Gold
upon certain transactions, except raising measures will be adoptee
the world. Hence its universal acflowed in from abroad. The do¬
sufficient to balance the 1959-196*
ceptability; and the metallic mestic and foreign demands for excise taxes the proceeds of which biennium budget which includes
money
of widest acceptability government securities swamped are specifically limited to high¬ the deficit existing at May JV
1959.
makes the best standard monetary the Treasury, forcing it to increase way purposes.
the

country. The question of
redemption disappeared from

w

■

■

•

sion

of

the

General

Number 5870

190

Volume

(547)

The Commercial and Financial Chronicle

,. .

tion of minority interests

Continued from page 2

under way

now

which is

will broaden the

capacity, off a little less than 0.5% from the

ability
to
mortgage
thereby freeing addi¬
tional cash for new purchase. It is

revised rate ol 12.9%.

important to keep in mind that
the
policy of the company is

will be modeled after whatever is done in

company's

Nonferrous

property,

The Security I Like Best
all the properties owned

,rship in

eight cents

or a pro¬

to

estimate

The

City

of

pay

tion

cents

96

out all of its cash genera¬
stockholders.
The addi¬

of

new

properties will pro¬

higher cash flow and further
liberalization
of
the
dividend.
duce

per

share in distributable earnings

to

tion

Conclusion

PROPERTIES
New York

share

per

jected annual rate of 96 cents.

corporation.

the

>y

to

for

Building; King Edward the next 12 months is based on Management of Kratter Corpora¬
otel;
Lunt-Fontanne
Theatre;
tion believes that other interesting
property now owned or in the
'awcett Building.
acquisitions may be made where
ni Park Avenue
(acquired since process of being acquired. Fur¬ present owners have run out of
ther purchases over the months
original exchange offer)
depreciation and a tax-free ex¬
ahead seem likely.
The elimina¬ change is desirable. ■ /. / : ■,
West Hartford, Conn.
Kratter

The Pratt & Whitney Co. plant
12 buildings) leased to Fairbanks
iVhitney.
• v->

Continued

from

4

page

Baltimore, Md.

Parking Ga-.

Office Building;

Beach, Calif.

Long

Ijpartfield

and

Store

Walker Department

::m

strike began.

after the

Stores.

Preliminary review of more than 5,600 letters tabulated to
of the steel companies' stand against infla-

Angeles, Calif

Los

Inflation," published by the committee on July 20, five days

More

date indicated support

r-'

Tishman Buildings.

tion by a

ratio of 20 to one.
of 4,968 letters was favorable to the companies'

A total

Francisco, Calif.

San

Mar t;

Merchandise

Western

Merchandise
' y.\

adjoining

'roperty
lart.

industrial

An

Additional

Four retail

;
,»

stores; major tenant;
•

.

1

In

addition to

...

the

estate,

real

;

what is known as

ompany owns

For examand leases 140,-

| 'personal property."
pie, Kratter owns
)00 stainless steel
containers to

the

aluminum

and
F.

Aug. 1.

ently

lectronic
,«made

credit

by Dashew

Ma-

Business

||chines) to the Standard Oil of
California,

among others..
The latest balance sheet,

rior

to

'ark

Avenue

the

acquisition

ata-processing machines, carries
after
indi¬
cting an original acquisition cost
»f
63.7million.
Under
present

■onditions,

struction.

he assets at $57.8 million
lepreciation of $5.9 million

basic brick in openhearth con¬
installed on about 100 of the
most modern openhearths in the industry. However, this remains
a questionmark and some mills fear that the basic refractories may

property

total

be

ation

collateral

as

all

mortgages
and

on

not

following

of them.

.

In

distribution

could

estimate, of

net

bers

available

for

stockholders

to

re¬

to

lates

to the 12 month,
period be¬
ginning Aug. 1, 1959.
•
\
Total:
operating revenue
will v
approximate $4.2 million.
Oper¬

them

duration will be critically important and
Lake boats, also manned by mem¬
steelworkers union,, are idle in port. Because of the
the strike

ore,

create

a

winter crisis.

,

the

of

shipping season, the rule of thumb is that for each day lost
shipping, the equivalent of one and five-seventh days supply

is lost.

could make the squeeze even tighter,
A portion of the ore for sinter lines is screened in the Upper
Lakes region. Screens cannot be operated when freezing weather
hits. This may have the effect of shortening the shipping season.
New sintering programs

f,

•

1

and production lagged.

short

cash

and

damage until

of refractory

extent

present the same problem and damage to
will not be known until charging operations are under way.

Income

earnings

the

know

keep up with roof work

-

The

not

Blast furnaces

Corpora-*

any

will

Some of the older roofs will probably col¬
lapse when heat is applied. The general effect of a long shutdown
on
facilities was shown this year when mills began operating
furnaces that had been idle a year or more.
Repair crews could

the

on:

are

Kratter

tion is not liable

vulnerable.

more

even

-

,,

ating and administrative expenses
and interest payments on mort-

Huge Losses in Wages and Sales Flow From

i^Ses and bank .debt will come to
Jl-Q million leaving $3.2 million

Steel Strike

15, will have cost steelworkers $208,000,000 in lost wages and steel companies $588,000,000
«IPreciati0n and amortization
Which during this
period will run .-in lost sales as of Aug. 3rd, "Steel" magazine said. There is no
The

steel

strike, which began July

I

tp $3.4 million.
corporation
me

net

over

.

income

$200,000.

show
level

;

•

loss

a

of

signof

at

>ne

one

which

steel,

re•

tive

aft?r °Perating, administra¬

and

interest costs, there is

a

reduce the outstanding

mortgage

and

bank

debt.

..

in

f"-: :1

-

A "Steel" survey' finds that most

shape;? Only 14% of the
inventories
for

•

This

more

"Steel"

A

-

outstanding.

:

wnrto? ^*5 above estimates

were

8otiated°tUh the C?™Vany has neSonaf
acquisition of addiinterest«Cf^-e ,producing property

will

last

quarterly

less

survey
30 days.

than

than 60 days.

i

inerptt
asc

•

in

5h made possible the

the monthly




dividend

are

uneasy

their stockpiles.

a

.

...

•

and

those

companies

59

showed

only ten

first half.,
had lower

American

Based

Iron

and

on

20.7% of Capacity

Steel Institute

announced that the

345,000 tons

a

[Ed Note: A strike in the steel in

week ago.

dustry began Wednesday, July 15.]
Actual output for the week beginning July
of the utilization of the Jan. 1,

12.2%

to

27, 1959 was equal
1959 annual capacity of

Estimated percentage for this week's fore¬

147,633,670 net tons.
cast is 11.7%.
A

month

ago

the operating rate

(based on 1947-49 weekly
tons. A year

1,586,000 tons,

*98.7%.
of

*Index

production is based on average weekly production

for 1947-49.

Auto

Industry Had Third Best July Output
windup

steadily-advancing

The

of

1959

model

automobile

production took an added impetus in the week ended Aug. 1 as
virtually all Chrysler Corp. activity ground to a halt except at
the Plymouth plant at Evansville, Ind., which was scheduled to
halt operations in the forepart of the present week, "Ward's
Automotive Report" said.
run,

and

Imperial was the first Chrysler division to end the 1959 model
building out July 1. It was followed by Chrysler, Dodge
De Soto.
Studebaker-Packard completed its '59 model run:
(.
scheduled to build out in the current week

July 22.
Other automakers

Wis., and Buick at Flint, Mich.;
Oldsmobile at Lansing is expected to^
wind up the model year Aug. 13.
V.
The auto industry, "Ward's" said, built an estimated 551,200cars and 112,228 trucks in its U. S. plants during July, its third-bestJuly in history that defied effects of the nationwide steel strike.
In January-August it will have operated at an annual rate of
American Motors at Kenosha,

are

and

at

six

other

plants.

1,200,000 for trucks.
phase-out routine, six-day pro-^
gramming was light for week ended Aug. 1. The only car factories
that worked through that' date were Ford at Dearborn, Mich.,
Lorain, Ohio, Chester, Pa., Chicago, 111., and St. Paul, Minn. Ram¬
bler had dropped its steady six-day schedule to five days because
6,135,000 for passenger cars and
In keeping with the usual

of

an

employee picnic on Aug. 1.

production fared poorly for the week under review,

Truck

turnout of previous week
the close-out of all Chev¬
rolet truck-building and the shut-down at Studebaker. Two major
producers, Willys and International, will be off Aug. 1-15 for
annual vacations.
This, coupled with inactivity at other sites,
will cause August truck output to decline to about 50% of July
production.
>,

slipping an estimated 18% below the
(25,119 units). Aiding the decline was

Combined

car-truck production for week ended Aug. 1 was

estimated 142,851 units, off 4.5% from the total
(149,565).
Aug. 1, domestic car production will reach an estimated

scheduled for an

of the week before
As of

the same year-ago period (2,575,675).
production this year (768,807) also shows a 49% gain
year's turnout to date (515,882).

3,841,970 units—up 49% over
Truck
over

last

9.2% Above 1958 Week
electric light
and power industry for the week ended Saturday, Aug. 1, was
estimated at 13,775,000,000 kwh., according to the Edison Electric
Institute.
i
For the week ended Aug. 1 output increased by 198,000,000
kwh. above that of the previous week's total of 13,577,000,000
kwh. and showed a gain of 1,156,000,000 kwh. or 9.2% above that
Electric Output

The amount of

of the

electric energy distributed by the

comparable 1958 week.

11.8% From Corresponding 1958 Week
freight for the week ended July 25 totaled
536,430 cars, the Association of American Railroads announced.
This was a decrease of 71,635 cars or 11.8% below the corre¬
sponding week in 1958, and a decrease of 199,977 cars or 27.2%
below the corresponding week in 1957.
L
Loadings in the week of July 25 were 48,640 cars, or 8.3%
below the preceding week reflecting the fact that the steel strike
was in effect during the latest week as compared with only three
Car Loadings Off

Loading of revenue

■

respondents report metal
About 46 can hold on

r-

*

-

steel is a clue that

holes show up in
tonnage
Right now, production
and will end for most
This will take some of the pressure

couple of weeks.
a

days in the earlier

and will become more so as

Heavy consumer pressure to place new

off stocks.

Half

of

operating rate of the steel companies will average *20.7% of steel
capacity for the week beginning Aug. 3, equivalent to 332,000 tons
of ingot and steel castings (based on average weekly production
of 1947-49) as compared with an actual rate of *21.5% of capacity

inventories are still in good

•is not likely to show up for several weeks.
of 1959 automobile models is slowing down
Within

study

Steel Output
The

tax losses are esimated

\ Bld: the continued trickle of new orders for

buyers

a

half and

settled by mid-August,
record if the settlement

profits than they had last year.
The steel strike is setting the stage for the best fourth quarter
in the nation's history.
The longer the strike goes, the quicker
the recovery will be once a settlement is reached. The high peak H
for the fourth quarter will probably be the middle of November,
with a repeat just before Christmas.
The scrap market is steady to strong, "Steel's" composite on
No. 1 heavy melting is unchanged at $38.67 a gross ton for the
third straight week. Expectations of strong poststrike demand and
heavy exports support the market.

*

m?ireS ai* amount just under $2,3
mi
a11 shares
ur distribution to the 2.6
°n

chance for

a

is

by Labor Day.
N
The earnings of many firms hit all-time highs in the

.'■>

steel.

•/ '."' Each week the strike lasts, government
!/at $45 million.

$914,000 for payments

mnrf1

the metaiworking weekly said.

lost production of 5,662,000 ingot tons of
will have;"cost the companies $112,000,000
overhead/*'depreciation, and salaries of nonproduction

workers

It'll have

strike

steel

the

the ^strike;

and

-through

cash

? available for distribution,

gainst The $3.2 million which

•

.

if

comes

The economy will have

VZ.,.."

develops the

early settlement.

an

Other losses are also involved,

slightly

meaningful .calcuiatioh^is

,

a

On this basis the

will

steel. Copper, lead, and

also watching steel.

are

year

said.

"Steel"

they start operations.

Corpo-

to

guarantee
making the effective out¬
standing $26.6 million.. • In any
properties

New basic roofs have been

Mills

eases,

event

the greater use of

is

precedent

42.1 million but of these $15.5 are
Kratter

In-process inven¬

some

pipelines right up to the shutdown. They should be able to move
steel shortly after a settlement.
One factor in favor of possibly improved recovery over past

raisal value close to $75 million.
on

reduced

were

some

management believes
hat their properties have an ap-

Mortgages

strike, shipments will be light.

by heavy June shipments before/the
deadline, but most mills continued to feed steel into the

tories

full

the

.

the ingot rate.

that, they should match

After
strike

ssigned back to

continuously to coastal ports

this

suggests

Age"

For the first two weeks after a

drawn
of 405

Dashew

the

and

crisis are mills with direct access to

ore

timetable in the lag in the
industry's return to full operation after the strike ends:
One month strike: Two weeks before operations hit 85%.
Two months' strike: Six weeks before operations hit 85%.
"Iron

The

machines

card

the

Exceptions to

foreign ores which can be shipped
while the Great Lakes are frozen.

Co. In addition, it reacquired and leased four

ire wing

will be pinched

Other sources believe the entire industry

.

high, "Steel" said. Aluminum
strike. Eventual settlement

Metaiworking will have record profits in the second
for

strike

steel

the

day

are

production) was *140.2% and production 2,252,000
ago the actual weekly production was placed at

the strike lasts two months.

if

.

Schaefer

M.

zinc industries

or

Jartfield Stores.
«

being received

are

stretches out, the longer it will
take mills to ge back into production after a settlement. This is
because
damage to openhearth and blast furnances increases
with the length of time they are out of operation, reports "The
Iron Age," national metaiworking weekly.
;
In addition, an ore crisis will be shaping up unless there is
an
early end to the negotiation stalemate. One steel plant indi¬
cated earlier that it would be in trouble if the strike went beyond
Each

| Carpet Co.
Phoenix, Ariz.

tabulated,

be

to

Ancillary Effects of Long Steel Strike

>

to

leased

yet

letters,

daily, the committee said.

storage

35

opinion classifiable, one

another.

way or

buildings
on
SO1/*
Bigelow-Sanford

factory

Jiicres

park;

Most of the others showed no

troversy.

Thompsonville-Enfield, Conn.
and

posi¬

tion, and 243 ran contrary. Some 400 of the letters revealed worry
over the strike,
but took no position on either side of the con¬

hopes

peace

contract extensions probably mean no

Industry

The State of Trade and

age.

12.5%
preceding week's

Ingot operations last week were estimated at

extensions.
of

35

v.

Intercity Truck Tonnage
In

whose

contracts

were

to

still producing steel.

expire July 31

Most of

have won 14 day

11.3% Ahead of Like Week
1958

in the week ended July 25 was 11.3%
the corresponding week of 1958, the American Trucking
Continued on page 36

Intercity truck tonnage

,

hundred companies are

period.

1

ahead of

.

•

•'.

'

Financial Chronicle

The Commercial and

Thursday, August

..

.

^

'

»

1959

.

Continued from page

35 :Jr

r

":*Y

:

to 2,729,000 bales,

Exports for the season through July 28 came
against 5,628,000 in the similar 1958 period.1

ago.
"

BROOKLYN,

tonnage was one-half of 1%
this year.
These findings are based on the weekly survey of 34 metro¬
politan areas conducted by the ATA Research Department. The
report reflects tonnage handled at over 400 truck" terminals of
common carriers of general freight throughout the country.

3.6% Above
for July 25 Week

Lumber Shipments Were
Production

¥

,

N. Y.-Downin»
Corp. is conducting I
securities'business from offices at
26 'Court St. Officers are
Irvinj
P. Dinerman,
President; Samuel
Dinerman,
Vice-President; and
Shirley Dinerman, Secretary.

,

For Fifth Straight Week

.

price index, compiled by Dun & Bradstreet,

The wholesale fbod

Association, Inc., announced. Truck
below that of the previous week of

Downing Inv. Corp. Opens
Investors

Wholesale Food Price Index Down

on July 28 to $5.96 from $5.98 a week earlier.
the fifth consecutive week-to-week decline and the level

Inc., dipped 0.3%
This

was

was

the lowest since the $5.95 of Nov.

was

10.1%

The current index

6, 1956.

Treasurer.

below the $6.63 of the corresponding date a year ago.

in wholesale

upward

Moving

cost

barley,

week were

this

Now

and eggs. Lower were flour, wheat, corn, rye, oats,
hams, lard coffee, cottonseed oil, steers, and hogs.
The index represents the sum total of the price per pound of
31 raw foodstuffs and meats in general use.
It is not a cost-ofsugar,

Espy & Smith

cocoa,

PANAMA

vestment

W. G.
Espy
Securities, 20 North
being conducted

Oak Ave., is now

Its chief function is to show the general trend of

living index.

CITY, Fla.—The in.

business of

Investment

'

shipments of 466 mills reporting to the National Lum¬
Barometer were 3.6% above production for the week

Lumber

ber Trade

8.1%

In the same week new orders of these mills were
production.
Unfilled orders of reporting mills
42% of stocks. For reporting softwood mills unfilled

above

amounted to
orders

rate,

equivalent to 19 days' production at the current
stocks were equivalent to 41 day's production.

were

and gross

year-to-date, shipments of reporting identical mills
1.0% above production; new orders were 1.9% above pro¬
the

For
were

as

Retail Sales Continue Upward

car

Swing

a

sales continue above those of last year.

July 29

volume

dollar

total

The

in

trade

retail

Aldrich

tbi

estimates collected by Dun & Bradstreet, Inc.

above. Compared with the corre¬
sponding week (July 25) in 1958, production of reporting mills
was
0.4% below; shipments were 1.0% below; and new orders

varied from the comparable

Scott

been

week

formed

Wall

ended

above that of a year ago, accarding to spot

2 to 6%

was

of

Form Aldrich Scott & Co.

#

-

duction of

above; new orders were 5.3%

G.

slackening in demand for large ticket items in stores
located in steel producing areas, over-all retail sales show increases
over the same week
a
year ago.
Men's wear, women's apparel,
furniture, floor coverings, linens and domestics all moved ahead
of last year in sales.
Reports from various cities indicate new
Despite

duction.

Compared with the previous week ended July 13, 1959 pro¬
reporting mills was 6.8% above; shipments were 11.6%

Espy & Smith Investment Se¬
curities, Inc. Officers are William
Espy, President; H. C. Smith
Sr.,
Vice-President;
and
F. L.
Espy, Secretary.

food prices at the wholesale level.

ended July 25.

St.,

in

gage
ficers

Regijonal estimates

1958 levels by the folic wing percent¬

&

July 30 from 245

ended

in the preceding week, re¬

a

Edward L.

are

and

dresses and

of Summer

volume

down in many

$5,000

277.

or

Form Golden
A.

reach

On

the

other

excess

a

those

last

involving

week

and

33

liabilities

in

1959.

increased

to

125

from

112

construction

43 frcm 32,

and commercial service to 25 from 22. In contrast,
manufacturers fell to 41 from 51 and among whole¬
salers to 18 from 28.
All of the decline from last year's level
was concentrated in manufacturinug, wholesaling, while mortality
in other groups edged above 1958. Service casualties climbed most
noticeably from a year ago;
the toll among

Fivq of the nine major geographic regions reported heavier
in the

tolls than
74

preceding week.

The Middle Atlantic States had

compared with 67 a week earlier, and the Pacific total edged
to 77 from 76. No change appeared in the East South Central and
Mountain States, while the week's only declines occurred in the
as

NoMh Central States

East

to 33

down

from 43,

and in the West

South

Central, down to 12 from 18. Year-to-year trends were
mixed; failures ran below 1958 levels in five regions but edged
higher in four regions. Marked declines in the Middle and South
Atlantic States were balanced
against a considerable increase
from last year in the Pacific States.

Wholesale

a

Commodity Price Index Edges Up

was

a

noticeably

marked

rise in rye

higher.'Rye

prices this week as trading
transactions were stimulated by a

recommendation by the Tariff Commission that
imports be cut sub¬

stantially even though supplies in this country are light. Although
corn offerings were
light, reports of favorable growing conditions
discouraged trading and prices remained close to the prior week.
Wheat

prices advanced moderately during the week

as

of last year.

were limited in some markets and both domestic and
export
buying picked up. A slight decline in oats prices occurred, but
trading was steady. Soybeans prices weakened during the week as

result

of

increased

processors'

stocks

and

an

expected

large

Although

sluggish.

Purchases of rice for export

fractional
a

rise

in

sugar

prices occurred

during the week

Coffee trading picked up

a

were slightly higher. Cocoa prices advanced
moderately
slight gain in trading.

Small

receipts in Chicago and increased trading helped hog
Although the salable supply
prior week, it remained well below
a year ago. Steer
prices strengthened at the end of the week and
finished moderately higher than the
previous period reflecting a
moderate rise in trading. Transactions in lambs were
steady, and
prices edged up fractionally.
>
■»..

prices move up appreciably this week.
of cattle moved up from the

Prices

on

the New York Cotton
Exchange showed little

new

crop.

Tuesday

United States exports of cotton in the week ended last

were

the smallest iov the
season,

T^S compare(* wit*1




49,000

a

amounting

to

24^000

week earlier and 105,000 a year

M.

209

La

Salle

St.,

New

York

and

Exchanges.

He

South
the

Stock

previously with Lamson Bros.

Co.

Shanahan

Mr.

with

was

Three With Lorraine Blair
(Special to The Financial Chronicle)

111.

CHICAGO,

A.

Phyllis

—

Rustman, Eva L. Weber and Bar¬
bara M. Willoughby have joined
the staff of Lorraine L. Blair, Inc.,

Although trading in gray goods is dull, at this time, it is be¬

North La Salle St. Miss Rust-

30

many of the mills are unable to take on additional orders at
this time. Orders for novelty sportswear goods, are being turned

was
previously with ShearHammill & Co.

man

son,

Two With I. L. Brooks

ings have been made to the end of the year by mills supplying
Trading has been slow in carpet wools,
but prices remain firm.
Sales of woolen wools have picked up
with the reopening of mills following Summer vacation shutdowns.

(Special to The Financial Chronicle)

men's cotton slack fabrics.

SAN

are

L. Brooks

I.

5% for July 25 Week

Stock

Pacific

the

of

members

taken from
the Federal Reserve Board's Index for the week ended July 25,
increased 5 % above the like period last year. In the precedinge
week, for July 18, an increase of 7% was reported. For the four
weeks ended July 25, a gain of 7% was registered and for Jan. 1
to July 25 an 8% increase was noted.
as

Ballantyne

J.

Davis

L.

Calif. and Carl
now affiliated with
& Co., 333 Pine St,

FRANCISCO,

Eugene

Nationwide Department Stores Sales Up

Coast

Exchange. Both were form¬

erly with King Merritt & Co,

Joins
is

Nash

Citizens

H,

Texas—Robert

now

associated with Ep¬

Guerin

pler,

sales in New York City for the week ended July 25 showed no
gain from that of the like period last year. In the preceding week,
July 18, a 6% increase was reported, For the four weeks ended
July 25 a 1% gain over the same period in 1958 was recorded and

Inc.

Eppler, Guerin

ABILENE,

According to the Federal Reserve System department store

Inc.,

Turner,

&

Bank Building.

National

Mr, Nash was previously
firm's Ft. Worth office.

with the

Form B. G. Harris Co.
'

LONG

Purcell Opens Branch
HEMPSTEAD,
Co.

at

29

N.

Allied Securities Opens

Y. —Purcell
office

has opened a branch
North

Franklin

St.

under

HOUSTON,
curities,
Inc.

with offices in the Bettes Building
to engage

Riekert will be associate manager
in the new office.

President;
Rene Sanuily,
President;
and
Norman
Secretary-Treasurer.

Also

office

associated
as

Ernest

S.

account

with

the

new

executives

Officers

Frederick M. Rieckert and Albert

are

Form S.
LONG
Gilmore
curities

Broccardo Forms Co.

curities
115

of

111. — Raymond
engaging in a se¬

business

Walnut

name

3629

AID,
is

St.

from
under

Broccardo

Investment

Co.

offices
the

securities business.
N.
F.
Abramowitz,

a

ViceFaye,

at

at

firm

Securities

&

19

business from

Kentucky

Howard

Harris,

Stephen

Riftin,

Constance

and

business

Atlantic

Sterling
Chester
E.

BEACH,
Calif.—S.
is engaging in a

E.
O.

from

Ave.

offices

Officers

Gilmore,
Blackburn

se¬

Form

at

ite

M.

A.

Edington,

has

been

Secretary.

Harris, Secretary-

Employees
Mutual

Mutual

formed

Plan

Co.

with

cipal of the firm.

are

Chamoth^Co* Opens
Y.—Chamoth &

BROOKLYN, N.

Alva

Vice - Presidents;
Gilmore, Vice-Presi¬
dent and Treasurer; and Marguer¬
Drake,

Theresa

President

Vice-President,

Treasurer.

President;
and

offices

Officers are

offices a*
215 Mount Hope Place, New York
E.
City. Charles S. Janow is a prin¬

E. Gilmore Co.

Co.

St.

B. G.

—

engaging in

Co, Inc. is

Employees

W. Stock.

KIN C

in

BEACH, N. Y.

&

securities

a

are

Bing, Edward C. Melle,

Broccardo

Harris

Texas—Allied Se¬
has been
formed

the management of Louis Kantor
and Monte R. Falk. Frederick M.

change

during the week, but finished fractionally below the prior week.
Buyers were waiting for developments on the movement of
the

RobertH,
Shanahan

—

John

of

&

cause

&

market rise in transactions.

Secretary.

McDougal & Condon.

thus far.

country-wide basis

are

with Cruttenden, Podesta

now

Co.,

was

on a

and

Midwest

Reordering of fur-trimmed coats and suits, sweaters, and wool
was
brisk during the past week and there were signs
that supplies may be tight.
Sportswear and dressy clothes were
both in good demand. Foundation garments are being ordered in
larger quantities than last year, perhaps in anticipation of a price
rise.
Price increases are being put into effect on men's shirts
and there is a firm tone to the Fall men's and boys' clothing mar¬
ket.
Deliveries of boys' back-to-school clothing have been slow

Department store sales

and

members

costumes

were

*

prices

with

was

those
in dairy products, frozen foods,

flour

market, and prices held steady.

and

&

fresh produce and

trading expanded fractionally, prices were
down somewhat from the prior week. Rice volume remained
close
to the prior week as buyers waited for the new
crop to reach the

A

are

Jan. 1 to July 25 showed a similar increment.

carryover.

following

Hughett

year's figures.
reported increased activity in TV sets.

Primary interest
poultry.

to

business

(Special to The Financial Chronicle)

Food purchase continued at a high level and were above

sup¬

plies

a

Stores in several cities

565

City,

Golden, President and
and Ann G. Golden,

CHICAGO, 111.

last

over

has

at

Cruttenden, Podesta Adds

and the New England area showed in¬
creased sales after several dull weeks.
Summer promotions have

year ago.

There
was

upholstered furniture. Mid-Summer sales by department
stores have helped to keep volume above last year's level.
Floor
coverings continue in good demand. Some areas reported a slowing
down
in
demand for air
conditioners
despite warm, humid

York

investment

Vice-President

shown

raised the volume in linens and domestics

New

Corp.

offices

George Golden. Officers

Treasurer,

Case goods scld best last wek but good response has been

with

the

Preston L.

the best seller in home furnishings this

by some manufactuers. Flannelettes are in tight supply in what
has been termed one of the best years in cotton flannels.
Book¬

Following three consecutive weeks of declines, the general
commodity price level moved slightly higher in the latest week,
reflecting gains in prices on some grains, lard, coffee, butter, hogs,
steers, and rubber. The Daily Wholesale Commodity Price Index
stood at 276.52 (1930-32=100) on August
3, up slightly from the
prior week's 275.51, but down from the 279.96 of the corresponding
date

Summer.

as

weather, but New York

week ago.

casualties

Retailing
to

24 from 28

to

similar week last year.

of $100,000 were incurred by 23 of the week's

against 20

as

casualties,

small

dipped

$5,000,

failures

hand,

the

of A.

V

stores.

Ave.,

continue

Corp.

Golden

formed

Fifth

Men's furnishings and sportswear paced sales in men's ap¬
parel stores while clothing sales were reported slightly ahead to
Furniture continues

George

been

over-all volume in women's apparel exceeds that of last

year1.

among

of this size in

the 233

not

under

•

occurred

failures with liabilities of
which edged to 228 from 217 a week earlier but

more,

did

Liabilities in

1

rise

Secretary. Mr. Benedict

sportswear accounted for

specialty stores and the women's wear
departments of department stores this week. However, Fall coats

and the

Vice-Presi¬

formerly with McDonnell &

in

the toll

week's

and

Co., Incorporated.

the

of

Scott Aldrich,

and

dent
was

+3; New England —2 to +2.

most

ported Dun & Bradstreet, Inc. Although casualties were at the
highest level in five weeks, they remained below the 271 occurring
in the comparable week a year ago and the 281 in 1957.
Nine
per cent fewer businesses succumbed than in prewar 1939 when
was

89

Benedict, Jr.,

Treasurer,

Walter

suits and sportswear have also started moving well in some areas

The

has

at

City to en¬
securities business. Of¬

North Central +4 to +8; East North Central and Pacific
-1-3 to +7; South Atlantic +2 to +6; Mountain +1 to +5; Middle
Atlantic and West South Central 0 to +4; East South Central —1
Clearances

failures increased slightly to 252

industrial

Commercial and
the week

Inc.

offices

New York

President

ages: West

Slight Rise in Business Failures
in

Co.,

with

to

9.6% below.

were

-

6

(548)

86

Co.
at

in

formed with oftic;
to emgag
securities business. Natnai

has been

247
a

South Third St,

Number 5870

'J rolume

The
'i

following statistical tabulations

latest week
week

Business Activity
Aug.

§332,000

output (bbls.)—
Kerosene output (.bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
;
Stocks at refineries, bulk terminals, in transit,
Finished and unfinished gasoline (bbls.) at
Kerosene (bbls.) atDistillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at

.1

construction
State and municipal

—

(COMMERCIAL AND INDUSTRIAL) —

(E.

129,352,000

115,991,000
53,840,000

U.

536,430

585,070

697,633

28,113,000

25,835,000

20,084,000

40,638,000

22,811,000

279,435,000

311,623,000

265,701,000

6,766,000

7,295,000

5,341,000

5,150

5,018

Refined

469,892

588,643

494,003

$331,500,000

$651,700,000

$474,100,000

140,900,000

237,300,000

239,500,000

190,600,000

414,400,000

234,600,000

consumption

383,400,000

177,200,000

stocks

Aa

31,000,000

57,400,000

Public

Group

Utilities

Industrials

—

~

Group

Group

New

——

7,240,000

♦7,270,000

8,740,000

7,896,000

359,000

354,000

470,000

451,000

118

118

111

nonresidential

Other

13,124,000

Public

244

245

6.196c

6.196c

MOODY'S

COMMODITY

$66.41

$66.41

$39.50

$38.50

$40.83

29.550c

29.600c

31.000c

Production

41

23

18

24

(tons)

26.975c

26.625c

12.000c

12.000c

11.000c

11.800c

11.800c

11.800c

11.500c

11.500c

11.500c

10.500c

11.000c

ll.COOc

11.000c

Other

10.800c

10.000c

1949

AVERAGE

=

24.700c

24.700c

24.700c

24.000c

101.750c

102.250c

103.250c

95.750c

83.56

83.00

83.58

Industrial

Hospital

92.81

ACCOUNT

85.98

95.01

89.37

88.95

100.42

87.72

87.59

87.59

Total

85.85

94.41

Military

81.66

87.86

Highways

84.94

90.91

Sewer

85.20

85.20

85.07

4

88.13

87.86

87.86

98.57

-Aug.
Aug.

4
4

4.12

Total

4.72

4.71

4.43

4,46

4.49

4.59

4.59

3.86

4.75

4.72

Other

Total
Other

5.05

4.57

4.80

4
4

4.80

4.79

4.77

4.78

initiated

4.57

4.57

3.84

4

384.6

380.3

388.4

404.6

306,242

266,943

323,657

278,124

312,860

274,741

94

84

98

565,951

478,629

Total

109.36

110.80

110.58

109.95

.

2,358,080
437.780

1,841,450'

1,996,090

3,022,680

2,162,920

2,433,870

1,248,510
1,641,230

499,530
45,100

318,670

394,570

25,400

50,300

468,710

324,170

393,500

334,610

513,810

349,570

443,800

379,410

2,009,000

321,470

July 10

.

731,272

86,480

609,199

664,246

1,075,790

746,206

1,071,261

4,464,145

2,962,760

3,483,922
574,560

595,280

709,050

428,830

3,903,230

2,829,866

3,374,371
3,948,931

1,913,313

1,208,686

$115,413,588

$103,970,503

$57,387,366

July 10

1,941,000

1,317,297

1,491,388

7,016

5,432

13,985

13,154

July 10

1,933,984

1,311,865

1,477,403

$98,406,933

$67,845,349

$77,846,094

1,119,583
$49,493,774

479;410

347,730

378,240

362,100

July 10

sales

July 10

of shares

479,410

347~730

3~78~240

362~100

July 10

;

Round-lot purchases
by dealers— Number

741,420

590,290

793,420

Short

,

OF

MEMBERS

8,190

of June 30:

as

credit

consumer

credit
.

goods

consumer

and

2,048

2,240

loans

credit

_____—

Single payment loans

8,929

8,180

10,906

loans

2,198

9,074

modernization

Noninstalment

10,761

10,071

3,842

3,779

3,482

4,318

4,220

4,012

2,746

—

2,762

2,577

"

4~!—

accounts

Charge

'

credit

COTTON

.

LINTERS—DEPARTMENT

AND

COMMERCE—RUNNING

OF

BALES:
702,362

595,408
1,689,937

8,763,270

7,537,120

114,154

101,603

86,027

630,145

731,687

829,318

17,598,000

—

1,485,625

7,991,860

of June

month

17,591,000

17,443,000

819,530

consuming establishments as of July 4—

1,303,203

public storage as of July 4
month

Linters—Consumed

of

June

'.

Stocks

July

4

spindles active as of July 4

■-

(DEPT. OF COMMERCE):

COTTON SPINNING

Spinning spindles

in place on July 4

20,317,000

20,356,000

20,923,000

active on July 4

17,598,000

17,591,000

17,443,000

10,392,000

8,781,000

7,637,000

415.7

439.1

381.8

31,545

30,695

30,740

7,130

7,815

38,675

38,510

31,050

31,545

7,625

6,965

115

180

140

7,510

6,785

5,920

Active

spindle hours

July 4

(000's omitted)

hrs. for spindles in place June

Active 6pindle

TIN

ONDARY

(SHARES):

sales

OF

(BUREAU

821,780

494,010

714,200

813,910

July 10
July 10
U.

S. DEPT.

commodities

Meats

13,181,710

15,565,060

12,344,570

19,601,990

13,675,720

16,279,260

13,158,480

OF

IN

THE

STATES

UNITED

MINES)—Month

of

March

&

•

(in long tons):
Stocks beginning

of period—

Receipts

Supply

-

Stocks at end of period
—

products
foods

18,780,210

July 10

WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 = 100):
Commodity Group—

Processed

14,590

8,911

RE¬

credit

sales—

Other sales

Farm

33,008

14,991

9,077

term

TIN—CONSUMPTION OF PRIMARY AND SEC¬

STOCK SALES ON THE N. Y. STOCK

Total sales

All

$43,079

35,029

15,419

FEDERAL

437,260

™;HANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR
round-lot

$45,790

35,810

THE

Spinning spindles

sales

Total

628,582

$46,716

OF

intermediate

Cotton

July 10

ACCOUNT

1,031,506

1,132,737

July 10

July 10

I__

sales

T0T£b ROUND-LOT

702,500
264,900

In

1,571,175
$86,848,352

2,186,078

July 10

Other

983,000
335,000

In

value

shares—Tbtal

rnifiions

Consumed

Round-lot sales by dealers—
Short

1,660,088

OUTSTANDING—BOARD

short and

Personal

2,787,599

Customers' short sales
Customers' other sales

Number of

—

CREDIT

Repairs

2,192,319

3,258,696

Odd-lot purchases
by dealers (customers' sales)—
Number of orders—Customers' total sales

Dollar

...

2,387,998

4,612,280

July 10

2_"

967,400

of

~

purchases)—t

12

941,666

1,318,000

Month

—

SYSTEM—REVISED SERIES—Esti¬

Service

DEALERS AND SPECIALISTS ON N. Y. STOCK
Exchange _ SECURITIES EXCHANGE COMMISSION

(customers'

RECORD

-

—

Other

766,959

81,960

LOT

dealers

$2,601,754

909,100

EN¬

municipal

Instalment

157,760

984.781

635,090

July 10

;

by

NEWS

GOVERNORS

Total

470,228

923,955
179,820
895,970

July 10

sales

sales

in

392,720

of members—

July 10

Number of shares
Dollar value

$1,876,500

1,164,000

—

construction

and

CONSUMER

44,800

484,130

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

Odd-lot

13

■'/

326,380

3,040,660

July 10

.

94

21

$2,482,000

CONSTRUCTION

Automobile

sales

111

...

construction

State

1,591,390

2,538,550

July 10

Other

47

111

20

Federal

"OF

July 10

Total

51

54

public..^.

S.

mated

sales

purchases
Short sales

77

49

62

development—

construction

SERVE

Total
-

U.

Public

427,875

Other sales

for account

76

51

93

533,760

July 10

transactions

128

82

July (000's omitted):

289,506

281,445

purchases
Short sales

Total round-lot

other

Private

25
25
25
25

Total

Total

572

127

enterprises..
and

GINEERING

the floor—

on

service

ENGINEERING

CIVIL

floor—

sales

575

133

4.02

4.55

All

4.35

4,77

4

sales

transactions

600

systems...!—

4.11

5.07

July 10

the

125

3.72

—July 10

off

purohases
Short sales

41

150

,

Conservation

4.70

July 10

initiated

Total

49

buildings..

:

Public

4.07

July 10

Other transactions

35

52
42

150

water

3.13

July 10

sales

39

52

_

—

4.19

4.12

36

262

42

service

and

facilities

and

30
242

38

institutional

and

Water

July 10
July 10
July 10

Other sales

423

.

31

Sewer

specialists in stocks in which registered—

of

sales

70

88
405

243

____

95.77

MEM¬

purchases

Short

20

1,472

80
-

98.25

35.46

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

17

1,531

406

.

...

nonresidential

Other

84.81

July
July
July
July

OF

_i

buildings

Administrative

85.85

<

81.42

of period

75

379

19

Educational

89.78

86.11

Aug.

FOR

^

197

87
362

.

1,562

buildings

Nonresidential

473

29

369

private.

Residential

165

478

85

...

utilities

175

24

telegraphy--

construction

81.29

100

TRANSACTIONS

185

478

public

other

All

Public

51

~

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

—

Railroad

25.000c

12.000c

July 31

at end

recreational

utilities

84.81

(tons)

Unfilled orders

and

construction

4
4

Percentage of activity

50

50

4
4

-

75

54

85.85

INDEX

—

79

48

Public

26.100c

27.600C

Aug.
Aug.
Aug.

(tons)

172

42

Farm

$66.49

$39.50

NATIONAL PAPERBOARD ASSOCIATION:
Orders received

241

49

4
4

Group

157

237\

44

,

Miscellaneous

5.967c

$66.41

4

Group

199

Social

271

6.196C

4

Group

Utilities

Industrials

329

165

85

Educational

12,619,000

5.08
Railroad

364

Hospital and institutional

13,577,000

13,775,000

252

Aug.
Aug.

178

255

Religious

1

748

161

207

buildings

53

762

172

garages

388

65

379

and

1,207

470

801

restaurants,

1,648

1,520

68

buildings

3,054

2,055

472

buildings and warehouses

Stores,
117

4,526

3,487

1,565\

alterations

and

Commercial

Office

!'

3,588
2,105

Industrial

4.72

—

July (in millions):

Nonhousekeeping

52,787,000

4.58

corporate

Average

OF

167

Additions

Nonresidential

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds.

DEPT.

buildings (nonfarm)
dwelling units

Aug.

Baa

Railroad

of

S.

Residential

Aug.

A

export

construction

Aug.

-

-

and

construction

new

Aug.

-

domestic

(barrels)

CONSTRUCTION—U.

Private

169,785,000

51,100,000

Aug.
.—

.

(barrels)__
_

all

Aug.
Aug.

Aaa

-

product imports

BUILDING

222,572,000

139,500,000

AVERAGES:

DAILY

PRICES

corporate———

(barrels)

(barrels)

165,460,000

July 29
July 29
July 29

99.5%) at

-

(barrels)..;

(barrels)

imports

Indicated

$388,032,000

July 29

•
—>—-—

■

.

oil output

LABOR—Month

July 29
July 29
—

-

-

gasoline output (barrels)

oil

Crude

■

.

_

608,065

481,599

July 29

at

(New York)

BOND

30,000

22,270,000

—...

output

Increase

-July 29

———

S. Government Bonds

Average

47,000

Total

—;

(delivered) at
(East St. Louis) at
Aluminum (primary pig.

MOODY'S

23,053,000

30,000

each)

Natural

INSTITUTE—Month

■

..

Telephone and

Zinc

tin

188,631,000

27,281,000

66,487,000

1

-

"

of Apr.

end

production (barrels of 42 gal-

Domestic crude

115,557,000

54,269,000

July 28
July 28
July 28

at

tZinc

Straits

211,714,000

222,839,000

26,132,000

6,919,000

54,789,000

York) at—
(St. Louis) at

Lead

6,786,000

134,463,000

(New

Lead

250,167,000

217,685,000

(short tons)

PETROLEUM

April:
Ions

M. J. QUOTATIONS):

&

refinery

243.847,000

of

Total domestic

25,338,000

July 30

Electrolytic copper—
Domestic refinery at———-—
Export

6,563,000

27,213,000

steel

PRICES

124,999

187,390

11,760,000

28,232,000

(per gross ton)
Scrap steel (per gross ton)
METAL

1,761,000
12,487,000

28,964,000

Pig iron

Ago

157,189

AMERICAN

178,808,000

COMPOSITE PRICES:
(per lb.)

AGE

1,598,000

12,701,000

•

198,271,000

DUN &

BRADSTREET, INC

Month

159,177

1,614,000

189:859,000

Aug.

Year

Previous

MINES):

131,460

7,517,000
28,464,000

188,157,000

EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

OF

155,213

Benzol

BUREAU OF MINES):
lignite (tons)
—
July 25
Pennsylvania anthracite (tons)
——
;
July 25
DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE = 100
July 25

Finished

6,535,835

7,836,000

28,682,000

6,372,000

COAL OUTPUT (U. S.
Bituminous coal and

IRON

7,025,075

7,946,000

2,073,000

July JO
July 30
July 30
——— July 30
July 30

.

(BUREAU

of that date:]

are as

Production of primary aluminum in the U. S.
(in short tons)—Month of April

1,586,000

28,419,000

July 25
of cars)—July 25

Federal

FAILURES

6,858,275

2,252,000

July 24
July 24
July 24
July 24

.

Public

58.8

11,907,000

_

Total U. S. construction
Private construction

79.5

116,042,000

in pipe line

NEWS-RECORD:

of quotations,

cases

Latest
ALUMINUM

ENGINEERING

ENGINEERING CONSTRUCTION —

CIVIL

in

or,

Month

July 24
July 24

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue freight received from connections (no.

that date,

Ago

29,186,000

July 24
July 24

Gasoline

♦345,000

6,855,125

July 24

—July 24

Prude

Ago

on

•

either for th^

are

Stocks of aluminum

(bbls. of

oil and condensate output—daily average
gallons each)
—
runs to stills—daily average (bbls.)

rrude
42

8

Year

37

production and other figures for thi

cover

Dates shown in first column

month available.

month ended

"12.2

§11.7

-Aug.

,

A

,

(net tons)

PETROLEUM INSTITUTE:

AMERICAN

8

(per cent capacity)

Indicated Steel operations
Equivalent to—
Steel ingots and castings

or

Month

Week

Week

AND STEEL INSTITUTE:

AMERICAN IRON

or

Previous

Latest

(549)

r,

The Commercial and Financial Chronicle

. . .

—

*119.3

119.3

119.4

87.5

*88.2

80 4

106.7

107.0

107.3

112.7

97.1

98.4

101.0

114.

Consumed

128.2

128.1

127.9

126.0

.

04.8

Primary

July 28
July 28

119.2

July 28
July 28
July 28

Total

processed

Intercompany
in

scrap

transactions

manufacturing

5,960
,

36,700
30,640

6,060

a<?

commodities other than farm and foods

Tevised figure. ^Includes 910,000 barrels of foreign crude runs. §Based on new annual capacity of 147,633,670 tons
1959. as against Jan. 1, 1958 basis of 140,742,570 tons. tNumber of orders not reported since introduction of
J"y divestment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

nf

MonthUT
on_

one-half

cent

a

pound.




^Revised

figure.

tEstimated

4,245

3,880

2,540

2,040

totals based on reports from

of primary, 95% of secondary
1957.
{Includes tin content of

for Q6%

end of

4,700
2,810

All

companies accounting
97% of total stocks

tin consumption in 1957 and

imported tin-base alloys.
J*

A

The Commercial and Financial Chronicle

38

.

Thursday, August

.

.

(550)

★ INDICATES

Securities Now in
• Accessory Sales, Inc.
July 23 (letter of notification) 19,000 shares of common
stock
(no par).
Price—$10 per share. Proceeds—For
equipment, advertising and working capital.
Office—
1575 Franklin Street, Denver, Colo. Underwriter—None.
& Construction

Missiles

Acme

Corp.

(8/27)

July 24 filed 200,000 shares of common stock, of which
150 000 shares will be offered for public sale for the
account of the company, and 50,000 shares will be of¬
fered for the accounts of the present holders thereof.

Proceeds—For general corporate
purposes, including additional • personnel, office space,
equipment, and the provision of funds necessary to
compete for certain contracts. Office—2949 Long Beach
Road, Oceanside, L. I., N. Y.
Underwriter — Myron A.
Lomasney & Co., New York,
Price—$6

(letter of notification) 200,000 shares of com¬
mon
stock (par one cent).
Price—$1 per share.
Pro¬
ceeds—For working capital; purchase of machinery and
July 22

equipment and for leasing of a plant in Plainview, L. I.,
N. Y.
Office—930 Newark Avenue, Jersey City 6, N. J.
Underwriter—Lawrence Securities, Inc., 32 Broadway,
Air

be

115,000 shares of common stock (par $1).
supplied by amendment.
Proceeds—For

corporate purposes including the construction
gas producing plants and the expansion of
industrial and medical gas operations.
Office—Allengeneral

of additional

Underwriters—Kuhn, Loeb & Co. and Reyn¬

town, Pa.

Co.

&

olds

Pa.

delphia,
•

& Co. of Phila¬

and Drexel

New York;

of

Gas

Alabama

(8/7)

Corp.

July 8 filed 30,843 series A cumulative preferred stock,
par $100 (with attached warrants) to be offered to stock¬
holders of record Aug. 6, 1959, on the basis of one new
share of preferred stock for each 30 shares of common
stock then held.
Rights expire Aug. 26, 1959. Warrant,
not exercisable before Jan. 20, 1960, will entitle holder
purchase 3 shares of common stock. Price—To be
supplied by amendment. Proceeds—To pay construction
costs. Underwriters—White, Weld & Co., New York; and
to

Sterne, Agee & Leach, Birmingham, Alabama.
Alabama Gas Corp.

company

;

>

:

Alscope Explorations Ltd.
March
26 filed
1,000,000 shares of capital stock, of
which 700,000 shares are to be offered publicly in the
United States, and 300,000 shares in Canada. Price—Re+
lated to the then current market price on the Canadian
Stock Exchange (17 cents per share on July 24). Pro¬
ceeds—For properties, drilling costs, working capital and
general corporate purposes. Office — 303 Alexandra
Bldg., Edmonton, Canada. Underwriter—None in United
States; Forget & Forget in Montreal, Canada.
State¬
ment effective June 1.

America

Mines, Inc.
150,000 shares of common stock. Price—
$5 per share. Proceeds—To assume and pay an option
held by its Mexican subsidiary to purchase certain min¬
ing claims in the State of Durango, Mexico, owned by
Compania Minera La Bufa, S. A., by paying to such
filed

29

$50,000; to construct and place in working oper¬
mine, mill and accessories capable of processing

company

ation

a

tons of

gold

ore

per

with the balance of the proceeds an

on

gram

exploration pro¬
for additional gold and mineral properties both in

Mexico

the

and

Southwest

United

States.

American Beverage Corp.
July 16 filed 950,000 shares of
—The

Office

Building, Houston, Tex.

stock

to

is

Bank

—

the

of

Underwriter—None.
stock.

common

Proceeds

be

exchanged for all the outstanding
capital stock of a group of "Golden Age" companies.
Stockholders on Aug. 10 will vote on approving exchange
Office—118 N.

offer.

11th

Street, Brooklyn, N. Y.

Un¬

derwriter—None.
•

American

June

30

(8/18)

Underwriter—To be deter¬

•

Foreign Power Co., Inc.
$22,500,000 of convertible junior

subsidiary companies, to aid in their construction pro¬
Underwriter—The First Boston Corp. and Lazard
Co., New York. Offering—Expected in August
September.

American

Hospital

be

(jointly). Bids—Expected to be received until 11:30 a.m.

common

stock (par $2) to
of Massillon

Statement effective July 29.

(EDT) on Aug. 18, at the offices of Shearman & Sterling
& Wright, 20 Exchange Place, New York City.
~~
Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200

shares of

common

stock (par $1),

offered

2020

ferred

rate of

debentures of the parent at the
for each five shares purchased. Price—$1.25

one

per share. Proceeds—For general corporate purposes and

wdrking capital.
Alaska.
•

Office—423

Fourth

Ave., Anchorage,
Underwriter—To be named by amendment

Aldens, Inc.

(8/17)

July 21 filed $4,550,600 of convertible subordinated de¬
bentures, due Aug. 1, 1979, to be offered to common
stockholders of record Aug. 14, 1959 on the basis of $100
of debentures for each
16 common
shares then held;

rights to expire

on

Aug. 31. Office—Chicago, 111.

To be supplied by

amendment.

corporate purposes.
New

Proceeds

Underwriter

—

—

Price—
general
Brothers,

For

Lehman

York.

the

one

basis

share

common

of

of

nine

Massillon

111.

stock

shares

of

American

Office—

common.

Underwriter—None.

Investors

Syndicate, Inc.
000,000 shares of common stock; (par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
25

of

for the 6%

for

American

June

431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued by DeCoursey-Brewis
Minerals Ltd., the company's parent (payment for the
shares by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
or

exchange for

on

Ridge Avenue, Evanston,

of which 1,000,000 shares are to be offered publicly and

for cash

in

Co.

common

3

filed

shares of

common

($1 each) and 1 share of pre¬
per unit. > Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
($9).

national

Price—$12

Trade

Mart, New Orleans, La.
Underwriter—
Lindsay Securities Corp.,; New Orleans, La.' 7
• American Israeli Paper Mills, Ltd.
>
July 31 filed American depositary receipts for 2,000,000
ordinary shares. Depositary—Bankers Trust Co., New,

York.
•

26

filed

$11,221,500 of subordinated convertible
debentures, due 1983, and 544,314 shares of common
stock. The
debentures are being offered
to common
stockholders on the basis of $100
principal amount of
debentures for each eight shares of common stock held
on July
28, 1959; rights to expire on Aug. 12, 1959. The
common shares are
being offered to present stockholders
on

the basis of

one

new

share for each

July 28, 1959; rights to expire

on

3J/3

shares held

Aug. 12, 1959. Price
Of debentures: 100% of
principal amount; of stock, $17.30
per share. Proceeds
For payment of long-term debt
and, in part, for plant construction. Underwriter
F.
Eberstadt & Co., New York.
on

—

—

All-State

Properties, Inc.
38,697 outstanding shares of capital stock
(par $1). Proceeds—To selling stockholders.
Price—To

June 26 filed
be

offered

market

from

time

to

time

(if the shares

or

in

the

over-the-counter

listed) on the American
Stock Exchange at the then prevailing market price.
Office—30 Verbena Ave., Floral Park, N. Y. Underwriter
are

—None.
:

Allied Colorado Enterprises Co.
common

stock

and

stock for

issu¬

551,140 shares of class A-l
under

common

outstanding subscription

cents per share and 6,576,200
stock for issuance under

agreements at 75
shares of class A common

outstanding option agreements

at 25 cents per share.
These securities will not be is¬
sued if the options and^ subscription agreements are not
exercised.
Proceeds—For working capital and
of subsidiaries and for

derwriters—Allen

surplus
general corporate purposes.
Un¬

Investment

Allied Colorado

corporate

purposes.

writer—Allen Investment
Allied

July

Office—Boulder, Colo.
Co., Boulder, Colo.

Retro-Chemicals, Inc.

14 filed

100,000




shares

of

A

it American States Insurance Co.
Aug. 3 filed 108,144 shares of class A stock, to be offered
subscription by holders of outstanding class A and
class B stock at the rate of
four

record date.

pany.

Ind.

one

shares of class A and

ceeds—To

stock

and

Oil Program

1960 and 70,000 rights for the purchase
of
stock (par $1.25), The offering is
being made
only to the stockholders of the company. Each

common

subscrip.

tion to

unit in Apache Oil Program 1960, will
entitle
to subscribe also to 200 rights for
the
purchase of one share per right of the company's $1.25

par

a

subscriber

value

will be

common

expire

at

2:00

of

(CST)

p.m.,

Oil Program

before June
as

stock. Warrants evidencing the rights
to Aug. 16, 1960, and will

nontransferable prior

Apache

1960

Jan.

on

31,

1962.

Unless

operations

commences

on or

30, 1960, all unexercised rights will be void
(CST) on that date, and their purchase

2:00 p.m.

price

will

ceeds

be

For

—

refunded.

general

Price—$12,000

corporate

per

unit.

Pro-

Office— 523

purposes.

Marquette Avenue, Minneapolis, Minn.
APA, Inc., the corporation's subsidiary.

Underwriter-

Appalachian National Life Insurance Co.
July 1 filed 966,667 shares of common stock, including
160,000 shares reserved for option to employees and directorsl Price—$3 per share.
Proceeds—To be used for
the conduct

of the company's

insurance business. Office

—1401 Bank of Knoxville

Bldg., Knoxville, Tenn. Underwriters—Abbott, Proctor & Paine, New York; Cumber¬
land

Securities

Corp., Nashville, Tenn.; Davidson & Co.,
Corp. of Fidelity, both of Knoxville,
Offering—Expected latter part of August.

Inc. and Investment

Armstrong Uranium Corp.
16 (letter of notification)
3,000,000 shares of

Jan.

mon

additional share for each

class B stock held

as

of the

Price—To be supplied by amendment.
added to the general funds of the

be

Office—542

North

Underwriter—City

Meridian

Securities

Indiana.

stock

Street

Pro¬
com¬

Indianapolis,

Corp., Indianapolis,

(par

one

cent).

March 23 filed

Natural

Gas

Corp. Ltd.

745,000 shares of capital stock

(no par),

of

cents

com¬

share
Office—c/o Hepburn T,
per

has been withdrawn.

Australian Grazing & Pastoral Co., Ltd.
13 filed 4,000,000 shares of common stock.

Jan.

(56V4

cents per

share).

Price—

'I

Proceeds—To purchase

cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
Office —1301

Avenue

L,

None.

Kamon

is President.

Robert

Cisco, Texas.

Underwriter

—

• Babcock Radio Engineering, Inc. (8/24-28)
July 29 filed. 100,000 shares of capital stock (par $1).
Price—To be supplied by amendment;
Proceeds—For
general corporate purposes including : the reduction of
bank
loans, for additional ;working capital, and the
carrying of larger inventories.
Office—1640 Monrovia
Avenue,. Costa Mesa; Calif. Underwriter—Schwabacher
& Co., San Francisco,Calif.
^
*

I Bankers Preferred Life Insurance Co.
Jan. 30 (letter of notiifcation) 100,000 shares of common
stock
(par $1.60).; Price—$3
per share. Proceeds—For
expenses incidental tor operation of an insurance com¬
pany.
Office—Suite 619> E. & C. Bldg., Denver* Cc?*.
,

Underwriter—Ringsby! Underwriters,
Colo.

:=

Barton

Denver

Inc.,

2,

-

Distilling Co.

t

July 6 filed $2,000,000 of, 6% secured notes due July 1,
1965. ; These are direct obligations of the company se¬
cured

by whiskey warehouse receipts for not less than
2,500,000 original proof gallons of Kentucky bourbon
whiskey produced by the company not earlier than Jan.
1, 1959. Price—To be supplied by amendment. Proceed!
—To

finance

whiskey during its aging period. Under¬

writer—Fulton Reid & Co., Inc., Cleveland,

Offer¬

Ohio.

ing—Expected today (Aug. 6).
•

Basic

Materials, Inc.
(letter of notification)

April 9

1,200.000 shares of com¬

stock

(par 10 cents). Price—25 cents per share
Proceeds—For mining expenses. Office—c/o Harold A
mon

Roberts,

President, Arroyo Hondo,

Underwriter

N. Mex.

—

Hyder,

Rosenthal

&

Letter to be amended.

Santa Fe, N. Mex.
Co., Albuquerque,
-

• Berens Real Estate Investment Corp.
July 31 filed $1,200,000 of 6V2% debentures, due 1963,
and 80,000 shares of common stock (par $5). Price—
per unit, each unit to consist of $300 of debentures and
20 shares of common stock. Proceeds—For working cap¬
ital.

Office—1722 L Street N. W., Washington, D.

C. Un¬

derwriter—Berens Securities Corp., same address.
•
Beverages Bottling Corp. (8/10-14)
July 6 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
ProceedsFor construction or purchase of additional facilities p

the manufacture,

warehousing and distribution of bever¬
Office—800 St. Anns Avenue, Bronx, N. Y.
Un¬

ages.

derwriter—Financial
Petroleum &

Price —10

Proceeds—For mining expenses.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
writer—Bruno-Lenchner, Inc., Pittsburgh, Pa. Statement

New York,
•

Big

which 500,000 shares are to be sold for the account
of the company, and 245,000 shares
by the holders there¬
of.
Price—30 cents per share.

Management,

Inc.,

11

Broadway,

N. Y.

Apple Supermarkets,

cents).

tion

Under¬

common

Street, New York.
Underwriter—
Co., Inc., New York. Offering—Expected

August.

Amican

(9/9)

class

42nd

for

Co., Boulder, Colo.

Enterprises Co.

July 13 filed 3,000,000 class A common stock (par 25
cents). Price—90 cents per share. Proceeds—For gen¬
eral

East

A. J. Gabriel &
in

Jujy 13 filed 5,899,618 shares of class A
ance

•

American & St. Lawrence
Seaway Land Co., Inc.
July 8 filed 500,000 shares of common stock to be of¬
fered publicly. Price—$3 per share. Proceeds—To
pay
off mortgages and for general
corporate purposes.
Of¬

fice—60

develop

Apache Oil Corp.
May 25 filed 350 units of participation in the Apache

•

American-Saint Gobain Corp.

June

Proceeds—To

Office—17 E. 7ist
New York. Underwriter—None. Offerings-Ex¬
pected sometime during October.

At par

Supply Corp.

April 20 filed 20,610 shares of
Rubber

principal amount.

Street,

•

deben¬

Price—To be

competitive bidding. Probable bidders: Halsey,
White Weld & Co., Stone & Webster
Securities Corp. and Kidder, Peabody & Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp.
& Co. Inc.;

ISSUl

&

filed

supplied by amendment.
Proceeds—To be applied in part to the repayment of
outstanding bank loans, and the balance will be used
for general corporate
purposes, including investments

or

REVISED

expand various enterprises in Israel.

Freres &

mined by
Stuart

At 100% of

Tenn.

tures, due 1982.

in

PREVIOUS

• Ampal-American Israel Corp.
auly 30 filed $3,000,000 of five-year 5% sinking
fund
debentures, series G, due 1964, and $3,000,000 of
10-year
6% sinking fund debentures, series H, due 1969.
Price-

the

grams.

July 8 filed $4,000,000 of series E first mortgage bonds,
due Aug. 1, 1984.
Proceeds—To pay construction costs,
and short-term bank loans.

to

day estimated to cost $350,000;
payment of about $15,000 of other obligations; to carry

(8/19)

Inc.

Products,

July 24 filed
Price—To

10 cents).

delphia, Pa.

100

New York.
•

Price—$4 per share. Proceeds—To be
funds. Office—Overbrook Hills, Pa.
Underwriter—Philadelphia Securities Co., Inc., Phila¬
(par

added

June

Inc.

Industries,

Acorn

v

share.

per

Registration

1959

ADDITIONS

SINCE

ITEMS

•

6

Inc.

(8/10-14)

fl

York.

Proceeds—For explora¬

and

development program.
Office
2100 Scarth
Street, Regina, Saskatchewan, Canada.
Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
—

June

24

working

filed

425,000

Price—$2

capital.

per

shares

share.

of

common

stock

(par 1

Proceeds—Expansion
& Co.,

Underwriter—Simmons

• Black, Sivalis & Bryson, Inc.
July 24 (letter of notification) 100,000 units of

.

intere-

t

(551)

in

Number 5870

190

Volume

Salaried Employees & Thrift & Profit-Sharing Plan.
— $l per unit.
Proceeds — For use by Employees

prjce

Office—7500 E. 12th Street, Kansas City 28, Mo.
Underwriter—None.
v
Bostic Concrete Co., Inc. (8/19)
June 19 (letter of notification) $250,100 of 8% convertibledebentures due July 1, 1969 and 10,000 shares of class A
common stock (par $1) to be offered in units of one
$500 debenture and 20 shares of class A common stock
prjce—$600 per unit. Proceeds—To pay obligations and
for working capital.
Office — 1205 Oil Centre Station

Plan.

Underwriter—Syle & Co., New York, N\ Y

Lafayette, La.

10,4C0 shares of class A
$4), to be offered to fullof the company and its subsidiaries,

employees

officers, with at least one year
of service as of 9-15-59, and including employees on
leave of absence. Price—$26.50 per share.
Proceeds—
For working capital. Office—South Country Trail, East
Greenwich, R. I.,
,./././ ■■
■

excluding directors and

Harbor Marina, Inc.

Boston

notification) 756 shares of common
and 1.512 shares of preferred stock (no
par) to be offered for subscription by stockholders of
record July 6, 1959 in units of one share of common and
(no par)

stock

Branson

eral

and

corporate purposes.
Office—401 South Broadway,
Angeles, Calif. Underwriter—Blyth & Co., Inc., Los
geles and New York.

shares of common stock, being of¬
subscription by common stockholders of record,

July 29,

1959, on the basis of one new

filed 37,268

29

&

11

(Bids 11

Common

Inc

Coral

Ridge Properties,

Preferred

Tool

shares

it Capital Shares,

Reid

Bids

40

—Common
(Alkow

Infrared

Common

—

Matronics, Inc.

shares

100,000

Brothers)

Common

-

$750,000

Brothers)

(Bids

$3,150,000

EDT)

noon

i

.-Equip. Tr. CtfsL

Pittsburgh & Lake Erie RR

Common

Sea View Industries, Inc
Debs. &
(Michael G. Kletz & Co., Inc.) $714,000

(Thursday)

August 27

Common

& Construction Corp
A. Lomasney & Co.) $1,200,000

Acme Missiles

(Friday)

August 28

Insurance Co
Common
stockholders—underwritten by G. J. Mitchell Jr. Co.

Great Western Life
(Offering to

C

500,000 shares

Co.)

&

Purvis

and

I

Common

Inc
Co.

$1,500,000

and Amos C. Sudler & Co.)

(Monday)

August 31

Minit Markets, Inc.—
Common
(Offering to stockholders—underwritten by Pierce, Carrison

Jackson's

223,000

Inc.)

Wulbern,

shares

$4,000,000

EDT)

a.m.

$1,000,000

Inc.)

Co.,

&

Industries, Inc

Bonds

11:30

page

(Wednesday)

August 26
Entron, Inc.

(Purvis &

Corp

Alabama Gas

.-Debentures

on

Common

Corp.

(Tuesday)

August 18

Common

.— ——

General Time Corp

business. Office—15 WilContinued

250,000 shares

Co.)

&

Inc.

indirectly in the ilfe insurance

$2,500,000

Inc.)

Co.,

&

Engineering

&

Research

Brokerage

_

,

Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
—To be supplied by amendment. Proceeds—For invest¬
ment in the securities of companies engaged directly or

..

Co

(Shields

Hammill & Co.) 136,000 shares

(Shearson,

Schmidt, Roberts & Parke)

.Debentures

Tower

shares

Inc.

Executone

____Common

(Kidder, Peabody & Co. and
155,269

Williston & Beane)

and J. R.

450,000

Co., Inc., Salt Lake City.

(Myron

(William H.), Inc

(Fulton

Inc

& Co.

Podesta

(Cruttenden,

general corporate purposes.
Salt Lake City, Utah.
Underwriter—Cromer

_Com. and War.

Terminal

Williston & Beans)

(Cruttenden, Podesta & Co. and J. R.
450,000 shares

Price—*
construction
and for
Office—3955 South State St.,
of common stock.

At par (20 cents per share). Proceeds—For
of a pilot plant; for measuring ore; for assaying;

$5,500,000

Corp.)

Investing

(General

Common

—

Common
500.000 shares

Inc.)

Co.,

&

Corp.
Rorer

shares

250.000

Co.)

&

Podesta

(Cruttenden,

Ridge Properties,

~

A California Metals Corp.
July 27 filed 2,500,000 shares

Electro Medical Products

Micronaire

Common

Transportation Inc.—

Buckingham
Coral

$850,000

Co.)

&

(Blair

Common

Big Apple Supermarkets, Inc
(Simmons

None.

(Vermilye

Magnuson Properties, Inc

$300,000

(Financial Management, Inc.)

—Common

Plywood Co., Inc.—
Preferred
(Standard Securities Corp., Irving Weis &. Co., J, A. Winston
& Co., Inc., Bruno-Lenchner Inc., Netherlands Securities
Co., Inc, and Plymouth Bond & Share Cgrp.) $600,000
Leeds Travelwear, Inc
Common
(Anchinclcss, Parker & Redpath) 262,500 shares

..-.....-Common

Investment, Inc.
$300,000 principal amount

debentures, to be offered ill denomina¬
tions of $100 each. Price—At par. Proceeds—To be used
to purchase real estate and for working capital. Office—
22435 Sunset Highway, Issaquah, Wash. Underwriter—
10-year 6%

(Lehman

Industrial

EDT) 515.6 shares

a.m.

Beverages Bottling Corp.___

The First Boston

—

July 29 (letter of notification)
of

$700,000

Co.)

&

Plohn

(Charles

Underwriter

Corp., New York.

105,000 shares

Co.)

&

Stone

Corp

Steel

Edwards

—Preferred

Manufacturing Co.——_

Arabol

Common

....

'Hayden.

$21,000

EDT)

a.m.

Electronics, Inc
Common
stockholders—underwritten by Hayden, Stone
Co. and W'inslow, Cohu & Stetson, Inc.) 356,125 shares
Corp.

program.

CALENDAR

ISSUE

(Offering to

Cubic

under the company's
Office — 178 Atlantic

incurred

loans

Mass.

Boston,

Ave.,

Cohu

Manufacturing Co.——
(Bids

share for each

eight shares and five shares for each 11 shares of cumu¬
lative preferred then held; rights to expire on Aug. 13,
1959. Price—$17 per share. Proceeds—For repayment of

(Monday)

August 10

Los
An¬

Gas Co.

Brockton Taunton
June

Highway Trailer Industries, Inc.---—---Common
(Offering to stockholders—underwritten
by Vari1'Alstyae.
/■■Noel & Co.) 1,105,294 shares

Arabol

Inc. (8/25)
subordinated debentures, due

Aug. 1, 1979. Price—To be supplied by amendment. Pro¬
ceed:—For construction of new stores and for general

$3,084,300

& Leach >

Agee

Sterne.

Co., Inc., New York.

July 27 filed $10,000,000 of

Corp
—
.Preferred
stockholders—underwritten by White, Weld & Co..

to

(Offering

Underwriter—

Conn.

Office—Stamford,

funds.

bank

construction

1956-1958

it Builder's Mortgage

Inc.

Instruments,

McDonnell &

Gas

Alabama

,

(8/17-20)
July 10 filed 40,000 shares of common stock (par $1),
of which 10,000 shares will be sold for the company's
account and 30,000 shares for selling stockholders. Pro¬
ceeds—Additional inventory, working capital, and gen¬
®

(Friday)

August 7

Proceeds — For
Office—542 E.
Underwriter—

'

None.

NEW
v

short-term

Price—To stockholders,; $100

preferred.

unit; to the public, $125 per unit.
expenses for operating a boat marina.
Squaritum Street, North Quincy, Mass.

per

fered for

\;

(letter of

29

June

of

shares

two

Brcadway-Haic Stores,

* Bcstitc^, Inc.
July 28 (letter of notification)
non-voting common stock (par
time

39

The Commercial and Financial Chronicle

. . .

"

stockholders—underwritten by Kidder,

to

(Offering

Peabody

(Bids

■>

New York
(Carl

Blauner

D.

Loeb,

.Common

Supercrete Ltd.
Blosser

(Straus.

300.000

McDowell)

&

Corn
Common
OA-~
. /

-a

Illinois

v

Loeb

(Bids

1

(S.vle fz

$300,000

.

Pioneer

11

(Bids

LTnion

$1,000,000

(Blyth

(Bids

Controls

Co.

of

(Merrill

to

be

America

Lee

Higginson

International Tuna

—

Co.)

&

Carter

(Clark.

Dodge

&

&

Lomasney &

A.

(Myron

Co.) $(300,000

$1,402,500 '

»

<1. >

Babcock Radio

(Thursday)

August 13

Cary

.Debentures

Co."

(Prescott,

Inc. and Carl
Rhoades & Cod $2,500,000

Sheoard
;.

&

Co.,

M;,Loeb,

Northwest Defense Minerals, Inc.
Trans

Central

Petroleum

(Barnett

&

Co.,

(Bids

(J. W.)

..Common

Oak

(Lee

(Friday)

August 14

Bonds

Valley Sewerage Co

_

,

Oak Valley

iBache & Co.) $145,000
Water Co
(Bache &

Co.)

August 17

United

Artists
(F.

Brothers)

Instruments,
(McDonnell

&

(Blyth &

by

Pacific Gas &

$4,550,600

(Auchincloss,

Parser &

C

40,000

—

Redpath)

shares

Debentures
$500,000

Wayne

Inc.)

to

be

invited)

$10,000,000

$65,000,000

Manufacturing Co.

(Mitchem, Jones &

Templeton and
90.000

shares

to

be

Common

Schwabacher & Co.)

(Monday)

Telegraph Qo.__Debens.

October 1 (Thursday)

hern Natural Gas Co

Northern Natural

Philadelphia

& Co., Inc.)

&

to

$20,000,000

(Wednesday)

Co
invited)

December 1

Consolidated Edison Co.
(Bids

Debentures

Co., Inc.)

be

Preferred

$20,000,000

Gas Co

Electric
(Bids

Bonds

$18,000,000

invited) $45,000,000

October 14

..Debentures

(Thursday)

invited)

England Telephone &

(Blyth

Tuesday)

Electric Co

(Bids

Common

Inc.)

Central Charge Service, Inc.




Common

Co..

& Common

Bondi
be

to

(Blyth

100,000 shares

Co.)

(August 25

Inc.—
Co.,

$300,000

Corp

Broadway-Hale Stores, Inc

'

Branson

..Common

<fe

Michael Horowitz) $620,000

September 21
New

(Bids

Co.) 150,000 shares

Murphy & Co., Inc.)

Eberstadt

(Monday)

stockholders—underwritten

Lehman

(Pearson.

(Bids

$425,000

.—Class A Common
and H. Hentz &

Higginson Corp.

David

Porce-Alume, Inc.

Bonds

Debentures
to

Service and

Inc.)

Co.,

&

Common

Corp

September 17

$4,440,000

invited)

Corp.—

-Debentures
underwritten) $25,000,000

Georgia Power Co

Equip. Trust Ctfs.

Securities

Kass,

(Tuesday)

15

West Florida Natural Gas Co
Notes
\
(Beil & Hough Inc.) $1,750,000

$125,000

Aldens, Inc.
(Offering

be

to

Brooks & Co., Inc.) $3,500,000
& Texas Pacific Ry.

Inc.——-Preferred & Common

Barnes

$100,000

Paddington
^

Corp. and P. W.

(Kenneth.

Common

Common

100,000 shares

Debentures

Inc

Chemicals,

Higginson

Hancock

Corp.—.
Inc.)

(Lee

Cincinnati, New Orleans

Common

$300,000

(Caldwell Co.)
1

•

Oil

(Simmons & Co. and

Engineering, Inc

Preferred

$3,000,000

Corp—

Chemical

Petrosur

(Monday)

August 24

Common

(Schwabacher & Co.)

Gabriel

invited)

(Offering to stockholders—to be

shares

Corp../.

Co.)

be

to

(Summit Securities, Inc.) $300,000

Hooker

Copmon

$400,000

Pickle Co., Inc

1.550,000 shares)

'

(Weil

(Bids

Common

Laboratories, Inc..

Hofman

....Common

Inc

Community Public Service Co
Fredonia

(Friday)

21

Common

Co., Inc
218,333 shares

(Philadelphia Securities Co., Inc.)

September

August

/..Common

280,000

shares

...Common

(Wednesday)

September 9

Petro-Chemicals,

Allied

$500,000

(Maltz, Greenwald & Co.)

Common

140.000 shares

Co.)

Raub Electronics Research

327,042 shs. '

Common
200,000 shares

2,000,000 shares

Speedry Chemical Products

of New York. .Debentures

underwriting

(Monday)

:
Co.)

&

Siearns

(S. D. Fuller & Co.)

Common

86.000

Sottile, Inc.

Common

Creek Precision Corp

Silver

$175,000

Corp....

Long (Hugh W.) & Co., Inc.--

$500,000

Co;__

Inc.)

Hough.

&

Investors Funding Corp.
(No

Common

International

'Bell

September 7

New West Amulet Mines Ltd
(Willis E. Burnside & Co., Inc.)

(Bear,

Corp.__Com.

(Thursday)

Florida Water & Utilities

191,703 shares

Corp.)

(Hayden, Stone & Co.)

v

.Common
and

Smith

Corp

(Gates.

Lease Plan

—

Fenner

Pierce.

Lvnch.

«■

$2,500,000

invited)

Co.)

Lomasney .&

August 20

Equip. Trust Ctfs.

Chesapeake & Ohio Ry

Bonds

$25,000,000

EDT)

noon

Bag-Camp Paper Corp.-& Co.,. Inc. and Cyrus J. Lawrence & Sons)

(Wednesday)

August 12

100,000 shares

Inc.)

Business Equipm't

A.

(Mvron

Debentures
Lerchen & Co.)

and Watlirg,

..Common
Co..

Common

(Karen

Com. and Debs.

&

(Thursday)

3

of America, Inc.—
Securities Corp.)'$300,000

Greek Voice

,

Lighting & Power Co

Houston

Nord Photocopy &

Co..

Finance

(White, Weld & Co.

-

$30,000,000

EDT)

a.m.

C ntUfSS'

General Investing Corp.) $1,000,000

$250,000 units

Co.)

Shepard

(Prescott.

Debentures

Michigan Bell Telephone Co.— — .
(Bids

shares

Industries, Inc

Curtis

$2.820,COO

EDT)

and Drexel & Co.)

Reynolds & Co.;

Co.;

&

Bostic Concrete Co., Inc

Common

_-^_Eruip. Trust Ctfs.

p.m.

*""*

'r

September

Common

Inc.—

Air1 Products.

115.000

and Caspers Rogers Co.)

RR—/_

Central

(Wednesday)

September 2

Sports Cent erst Inc^

National

/„-("^^esuay f

1/

(Tuesday)

General Magnaplate Corp....-.(Robert L. Ferman & Co., Inc.

Common
$525,000

& Co.)

Greenwald

'

(Kuhn.

August 11

Common

shares

Television Shares Management
/n-

i
$300,000

Co.)

Malkan

(Arnold

$600,000

Inc

Laboratories,

Foto-Video

Smith, Inc.) 188,500 shares

Extrudo-Film Corp.
(Maltz,

.Common
Co.)

Malkan &

(Arnold

Common

(Merrill Lynch, Pierce, Fenner &

Common

1,000,000 shares

Co.)

&

Rhoades

(Tuesday)

Corp.

Central

Eagle Food Centers, Inc

50 000 shares

Inc.)

Co..

&

Capital Fund of Canada Ltd
M.

(S.

Common

Corp

Microwave
(Milton

$35,000,000

EDT)

a.m.

& Development Corp.
V
Debentures & Common
D. Fuller & Co.) $4,505,600

Dilbert's Leasing

$1 000,000

Narda

11

September 1

Bonds

Co

Power

Consumers

$6,260,700

Co.)

&

Hudson Radio & Television Corp..
Common
(J. A. Winston & Co., Inc. and Netherlands Securities Co., Inc.)

$50,000,000

Bonds

(Tuesday)

of New York,

to be invited)

$50,000,000

Inc—Bonds

*

40

The Commercial and Financial Chronicle

Thursday, August 6,1959

If

centers and a super-market under existing purchase
oontracts and for working capital. Name Changed
Company formerly known as Dilbert's Properties Inc
Office—93-02 151st Street, Jamaica, N. Y. Underwriter-^
S. D. Fuller & Co., New York.

/;

..

.

(552)

bidand
Shields & Co. (jointly); Morgan Stanley & Co.; Harriman, Ripley & Co. and The First Boston Corp. (jointly).
Rids—Expected to be received up to 11 a.m. (EDT) on
Aug. 18 at office of Commonwealth Services, Inc., 300
by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; White, Weld & Co.,

To be determined

39

Continued: from page

Underwriter—Capital Sponsors,

New York.

liam Street,

ders:

Inc., New York;
Cary Chemicals,

•

(8/24-28)

Inc.

July 28 filed $3,500,000 of subordinated debentures due
Sept. 1, 1979 and 205,000 shares of common stock (par
10 cents) to be offered in units.
The number of shares
in each unit will be determined prior to the public

Park Ave., New
•

purposes, including
writers—Lee Higginson Corp.

corporate

Casco

Proceeds—For general
working capital. Unclerand P. W. Brooks & Co.,

the account of the
account of a group
of selling stockholders. Price—To be supplied by amend¬
ment.
Proceeds—To be added to the general funds of
the company, with approximately $750,000~earmarked for
acquisition of a Canadian plant for the production of
motors and solenoids,
construction of an addition to a
plant at Folcroft, Pa., and acquisition of property and
equipment in Arizona for production of rectifiers and
other semi-conductor products.
Approximately $170,000
will be used to retire notes and $250,000 will be invested

Price—

^stock.

per

Pearson, Murphy & Co.,
Offering—Expected any day.

Underwriter

—

Inc., New York.

Resources, S. A.

Central American Mineral

May 27 filed 620,000 shares of common stock, of which
500,000 shares are to be offered for the account of the
company and 120,000 shares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To
finance acquisitions and to increase working capital
Office—161 East 42nd St., New York, N. Y. Underwriter
'—None.

v.

/(

:

(8/17)
July 17 filed $500,000 of 5V2% convertible capital de¬
bentures.
Price—At 100% of principal amount.
Pro¬
ceeds—To add to working capital, buy accounts receiv¬
able, and
reduce short-term indebtedness.
Office—
620 —11th St., N. W., Washington, D. C. Underwriter—
Auchincloss, Parker & Redpath, New York.
•

Centra]

Central Corp.

Inc.

Service,

Charge

and working capital, of subsidiaries; to
loans.
Office —1315 Dixwell Avenue, Hamden,
Underwriter—Arnold Malkan & Co., New York.

or

maintain the working capital of the com¬

but will be initially applied to the reduction of
short-term notes due within one year. Part of the pro¬
also be used to retire outstanding subordi¬
debentures not exchanged.
Office—Georgetown,

may

nated

Underwriter—None.

Del.

^ Coastal Caribbean Oils, Inc.
(letter of notification) American Voting Trust
Certificates for 178,719 shares of common stock (par 10
cents). Price—At an estimated market price of $1.62¥2
per share. Proceeds—For expenses incidental to explor¬
ing and producing of oil. Office—Apartado 6307, Panama
.City, Panama. Underwriter—None.

July 27

Cohu Electronics,

Inc.1 (8/17-21)
(par $1)

July 20 filed 356,125 shares of common stock
made available to

be

stockholders

on

a

besi« of one

of the record date. Price
—To be supplied by amendment.
Proceeds—To reduce
outstanding indebtedness, for expansion, and for work¬
ing capital.
Office—San Diego, Calif.
Underwriters—
Hayden, Stone & Co., and Winslow, Cohu and Stetson,
Inc., both of New York.
share

for every

three held

Coral

Ridge Properties, Inc.

without additional

is

as

Underwriters

—

Lee

(8/10)

payment. The $1 par preference stock
common on a l-for-15 basis,

convertible into class A

of $3.33 per share of class A common.
supplied by amendment.
Proceeds—To
repay a mortgage and for general corporate purposes.
Office—716 North Federal Highway, Fort Lauderdale,
Fla. Underwriters—Cruttenden, Podesta & Co., Chicago,
upon

($25 par) and 12,559 shares of common ($1 par), 34,460
shares of the preferred and 9,059 shares of common are

May

options granted when
acquired on Aug. 6,

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding shares of common
itock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders. Office—145 Conklin
Vve., Binghamton, N. Y. Underwriter—None.

be

Proceeds—For

capital.
Sherman Street, Denver, Colo.
Commerce

working

Oil

Office—Suite

90:

421,

in

Oct.

1,

1968 and 3,000.000 shares

Underwriter—Merrill

•

•offered in units

common

stock

to

b-

follows: $l,00o of bonds and 48 share
Of stock and $100 of debentures ~~ 4 nine shares of stocl
Price—To
construct

York

be

as

supplied

refinery.

by

Proceeds
Lehman Rrmhpr*

T

amewment.

Underwriter-

v...

Offering—Indefinite

Commercial

Corp.
notification) 900.000

of

record

tor

working capital. Underwriter

amendment.
•

—

ceeds—For

Price—At

investment.

par

(10

cents

Office—450

com¬

pOr
So.

Lake

Consolidated Petroleum Industries,

Inc.

by

17

*

stock.

1

filed

100,000

AVOjUUU

Price—To

be

reserved

Office— 1130

E.

222nd

St.,

Prescott, Shepard & Co.,

cars, promotion, inventory, the estab¬
branch offices, expenses incidental to ob¬

for

issuance

upon

conversion of shares of the

Development Corp, of America
June 29 Registered issue.
(See Equity
below.)

Consumers

Power

July

Co.

(8/18)
of first ^mortgage

24 filed $35,000,000
1989.
Proceeds—For construction,

bonds,

due
and to repay bank
loans incurred for, construction purposes.
Office—212
West Michigan
Avenue, Jackson, Mich. Underwriter—




Equities, Inc., into DCA and the plan of reorganization
in

connection

~

therewith.

Underwriter—

None.

Corp.

Dilbert's Leasing & Development Corp.

(8/18-20)
June 11 filed $4,400,000 of 20-year 5V2 % convertible de¬

bentures, due July 15, 1979 and 1,056,000 shares of com¬
mon stock (par one cent) to be offered in units
consist¬
ing of $50 principal amount of debentures and 12 shares
of common stock. Price—$51.20
per unit. Proceeds—For
repayment of notes; to develop and construct shopping

luritii

Fe

'Uly

th<

™

tock
rice-

ng, l

|{\ven
3hila

Fii
fune

>f wh
he

r

coi

n

:omp

lias a

:lass
he

0

-To

)urcl
ivrite
Fi

July

Price

950 I
/ Mani

FI

July
stock

20, 1959.

Prici
meni

nue,
•

FI

July
65,00

by

a

edne

& H<

F<

July

New York.

$1.50

for £
N.

A

N. IV
F

July
(par

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and
no
less than $1,500 for single premium
Proceeds—For

Street,

N.

WM

investment, etc.

Washington,

D.

C.

Office—2480

gene

banl
worl

Gro)

New

Underwriter-

V/inP

F

Jum

Equity General Corp.
29
filed
together with Development Corp. of
America,
registration statements seeking registration
of securities, as follows:
Equity General, 500,000 share3
June

of

lions

-

Esiron, !nc* (8/26)
July 13 filed 200,000 shares of common stock. Price—
$5 per share. Proceeds—For purchase of machinery and
equipment and for interim financing of coaxial cable
television transmission systems.
Office—4902 Lawrence
St., Bladensburg, Md. Underwriter—Alkow & Co., Inc.,

r

and

coun

common

stock and

149,478 shares of preferred

and

stock;
stock.

Trie
418

C.I

Plar

F

Development Corp., 500,000 shares of common
Equity Corp. .Is the owner of 5,343,220 shares oi
Equity General common stock and proposes to offer
500,000 of such shares to the holders of Equity' common

Jun

in

Equity

Plai

2,399,504 shares of Development
Corp. common and proposes to offer 500,000 of such
shares to the holders of Equity General common in
exchange therefor, on a one-for-one basis. The Board
of Directors of Equity General has authorized the issu¬

*F

The

exchange

therefor,

General is the

of

owner

on

a

one-for-one

basis.

of

maximum of 149,478 shares of Equity General
preferred stock in exchange for shares of preferred stock
ance

a

of

Development Corp., on the basis oi on£ share of
Equity General preferred for two shares of Development
Corp. preferred. Office—103 Park Ave., New York City.

Trie
418

C.I

Jul)
stoc
pro<

Offi
der

Rev
•

C

Juh
deb

Fund, Inc.
June 29 filed
2,000,000 shares of capital stock. Price—To
be supplied by amendment.
Proceeds—For investment.

pur

Investment Adviser—Yates, Heitner & Woods, St. Louis.
Mo.
Underwriter—ESA Distributors, Inc., Washington,
D. C.
Office—1028 Connecticut Avenue, N. W., Wash¬

Pro

ESA Mutual

General

Jndei
imen<

accoi

Empire Millwork Corp.
April 17 filed 95,000 shares of common stock (par $1).
Price—$10.25 per share. Proceeds—To selling stockhold¬
ers.
Underwriter—None. Statement withdrawn 011 July

16th
UUlulHUl I
common

it Denab Laboratories, Inc,
July 31 filed 50,000 shares of common stock. Price—$10
per share.
Proceeds—For general corporate purposes,
of

Street, Jackson, Miss. Underwrite!
•

Proceeds^

supplied by amendment.

-To selling stockholders.
Euclid, Ohio. Underwriter
Inc., Cleveland, Ohio.

on

stock

contracts.

—For development of gas properties. Office—908 Alamo
National Bank Building, San Antonio, Texas.
Under

•

Smith

•

Industries, Inc.

consummated

Temporarily suspended by the SEC and a hearing had
been scheduled for July 14 whether to make this order
permanent.

&

Data

-None.

a company officer, selling stockholder.
Office
Kearny Villa Road, San Diego, Calif. Under¬
writer—Hayden, Stone & Co., New York.

(8/19)
OllCllV-O
shares VJl outstanding
of UUldtdHUlilg

ents)
turch

been

Office—333 S. Farish

—5575

ferred stock may be converted into two shares of com¬
mon stock at any time.)
Price—$3.75 per unit. Proceed*

Offering—

Fenner

held; unsubscribed shares to other stock¬
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capital.

proceeds

company's $1.25 cumulative convertible preferred stock
received by DC A common stockholders in connection
with the recently consummated merger of Real Estate

Lerner Co., New York, N. Y.

Pierce,

Steel

stockholders

bommon

•

-

April 30 (letter of notification) 80,000 shares of 6% con¬
vertible preferred stock (par $3.50) and 80,000 shares of
common stock
(par 10 cents) to be offered in units of
one share of preferred and one share of common.
(Pre¬

writer—Frank

Edwards

une

recoi

Corp,
(8/17-21)
July 17 filed 105,000 shares of capital stock. Price—
To be supplied by amendment.
Proceeds—95.2% of the

Development Corp. of America
April 30 filed 1,376,716 shares of common stock (par $1)

stock.

of

Lynch,

Emerite Corp.
Jan. 19 (letter of notification) 250,000 shares of series 3
:ommon
stock (no par) to be offered for subscription

Cubic

lishment

shares

pay

To be supplied by

City, Utah. Underwriter—Earl J. Knudson & Co.,
Salt Lake City, Utah. Offering—Expected in August.

mon

(letter of

Realty, Inc., to

Processing Center, Inc.
(letter of notification) 17,000 shares of common
($10 per share). Proceeds—To pay
an
eight-year lease of electronic machines, installation
charges arid
working capital.
Underwriters — Zilka,
Smither & Co., Inc. and Camp & Co., both of Portland,
Oregon. Offering—Expected any day.

15, 1959.
The remaining
158,387 shares will be offered publicly by the under¬
writer on a "best efforts" basis.
Price—To be supplied
by amendment. Proceeds—For repayment of notes and

share).
Pro¬
Main St., Salt

28

W.

June 29

May

taining permission to do business in other states, and the
establishment of a contingency reserve.
Office —1420
East 18 th Avenue, Denver, Colo. Underwriter—None.

Nov.

&

stock. Price—At par

Ave., Kansas City, Kan. Under¬

including salaries,

Investors

G.

Corp^, Miami, Fla. (8/17-21)
July 8 filed 140,000 shares of common stock (par 10
cents). Prices—$5 per share. Proceeds—To repay, loans,
to acquire property and equipment, and for working
capital. Underwriter—Charles Plohn & Co., New York.

Crusader Oil & Gas Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
141,613 shares will be offered on a one-for-one basis to

July

f

be

four stores leased from

^

iffice

omm

off chattel mortgages on equipment in five othfer
stores,
and for additional working capital.
Office—Milan, 111.

writer—None.

w

Sept. 1, 1968. $20,000,00 of subordinated debentures du«

—

Streets, Philadelphia, Pa. Underwriter—None.

holders.

stockholders

nd

Fai

oi partnership interests, to be
Price—$10,000 per unit. Proceeds—To
various
acquisitions.
Office
Broad &

$2,000,000

for

tl

ay

Mie ba
^

erwr

Office—640 Minnesota

Curtis

Refining Corp.

basis.

the basis of one share of series 3
stock for each three shares of series 1 and/or series 2

...

Dec. 16,1957 filed $25,000,000 of first mortgage bonds du*

effort*

supplied by amendment. Proceeds—To redeem
preferred stock of a subsidiary, to pay off out¬
standing 6% subordinated notes, to purchase equipment

Werner,

to be offered in units of $200 of deben
share of stock.
Price — $205 per univ

oest

Rights expire Aug. 25,
L959. Unsubscribed shares will be offered to the public.
Price—$150 per share. Proceeds—For working capital.

and

one

a

all of the

held.

(par $1)

Co.

on

investment

Underwriter—None.

—To

aolders of record April 30, 1959, on the basis of one new

tures

Power

Underwriter

Eagle Food Centers, Inc. (8/18)
July 23 filed 188,500 shares of common stock (par $2.50)
of which 20,000 shares are being offered initially by the
company to employees.
Any of such shares not pur¬
chased by employees and the remaining 168,500 shares
are
being purchased by the underwriters, 28,500 from
stockholders and 160,000 shares from the company. Price

Inc.
(letter of notification) 1,000 shares of common
stock (par $50 )to be offered for subscription by stock-

iitock

&

filed

used

Md.

3

Feb. 25 (letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common

Water

or acquis!,
balance to be

+ Du-Rite Sales Co., Inc.
July 10 (letter of notification) 50,000 shares of common
stock (par 50 cents). Price—$2 per share. Proceeds—For
working capital.
Office—3800 37th Place, Brentwood,

are to be used by the company to repay bank
loans, acquire inventories, including electronic test and
manufacturing equipment, arid for general corporate
purposes.
4.8% of the proceeds are to go to Robert V.

Colorado

Colo,

and

lachi

acquisition

organization

business,

in units.

Chestnut

Crusader Life Insurance Co.,

share for each two shares

capital

Denver

Electronic

March

June

Co

22

offered

Underwriter—None.

1958.

wuriung

nts)
(par 50

Inc., New York.

May 26 filed 48,460 shares of 5% convertible pfd. stock

were

finance

IJ

heari

riuly
stock

Proceeds—For

real estate, for

nd ti
15

Drexelbrook Associates

Crescent Petroleum Corp., Tulsa, Okla.

Corp.

for

share.

per

consumer

service

be

she assets of Norbute

oi

ised

111., and J. R. Williston & Beane, New York.

\

Price—$3

undeveloped

:

ion

payment

Price—To

issuable upon the exercise of stock

pany

ceeds

Swiss subsidiary.

July 8 filed 450,000 shares of $0.60 cumulative converti¬
ble preferred stock (no par) and 450,000 shares of class
A common stock
(no par). The no par preferred is
convertible into Class A common on a one for two basis,

Conn.

five-year subor¬
dinated debentures, to be offered to the present holders
of the company's subordinated debentures in exchange,
at face value, on the maturity dates of those securities
£0 long as
there are bonds remaining unsold in this
offering. No bonds will be reserved for this exchange
offering. Price—100% of principal amount. Proceeds—

to

•

repay

Citizens' Acceptance Corp.
June 29 filed $600,000 of series F 6%

To increase

a

Lynch, Pierce, Fenner & Smith, Inc. and
Higginson Corp., both of New York.

stock.

ities,

to

advanced

or

Merrill

Price—$3
share. Proceeds—For manufacturing and sales facil¬

per

•

in

(9/1-4)

Aug. 3 filed 200,000 shares of common

^nts).

total, 50,000 shares will be sold for
and 141,703 shares for the

share. Proceeds—For marketing of "Resistolox 20,
(an anti-oxidant) and for general corporate purposes.
Office—207 American Bank & Trust Bldg., Dallas, Tex,
$1

(8/12)

Controls Co. of America

company

Chemical Corp.

10 filed 300,000 shares of common

July

ian.

July 8 filed 191,703 shares of common stock (par $5).
offering will be made after a 50% common stock
distribution to stockholders of record July 24.
Of the

Inc., both of New York.
•

Diversiutd inc., Amarillo, Texas '
6 filea 300,000 shares of common

York 22, N. Y.

The

Price—$500 per unit.

offering.

•

bluff

ington, D. C.
•

Executone, Inc. (8/10-14)
July 15 filed 136,000 shares of common stock. Price—
be supplied by amendment.
Proceeds — For genera1
corporate purposes, including additional working

capital

turc

tur<

Ave
ard

&C

*<
Au

sha

inv

folume

59

Hammill & Co., New York.

tic.

hearson,

Extrudo-Film Corp. (8/18)
2 filed 175,000 shares of common stock (par 10
Price—$3 per share. Proceeds—For purchase of
achinery and equipment for the Pottsville plant, to
iv the principal on a 5%
note due Sept. 1, 1960, and
e balance will be added to the company's general funds
»d will be available for
general corporate purposes.
ffjCe—36-35 36th Street, Long Island City, N. Y. Unerwriter—Maltz, Greenward & Co., New York.
,nts).

50
oa

si-

be
4nt

Office—331

(par

&
ne.

For

I

•

Federated Investors, Inc.

(letter of notification) 42,000 shares of class B
stock (par value 5c) to be sold for the account
C the issuing company, and 21,000 shares of the same
i ;tock to be sold for the account of Federated Plans, Inc.
I
>rice_$4.75 per share. Proceeds—For advertising, trainng, printing, and working capital.
Office—719 Liberty
venue, Pittsburgh, Pa.
Underwriter—Hecker & Co.,
,

>0),
the
ur-

ires

hiladelphia,

'om

pay
res,

111.
lith

10
os,

Pa.

Industrial Income Fund,

Inc.

Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.

on

Flame Heat

July 21

id,

stock

to

Treating, Inc.

(letter of notification) 3,965 shares of common
be offered for subscription by stockholders of

24, 1959. Stockholders other than directors
and officers are given the right to purchase 1.3 addi¬
tional shares for each share owned prior to August, 1959.

record July

iS
Oil

Price—At

3

nue,

li¬

•

te,

al.
;ei

$1)>
old-

($10 per share). Proceeds—For equip¬
working capital. Office—3625 Hampshire Ave¬
South, St. Louis Park, Minn. Underwriter—None.
par

ment and

2

•

Florida Water & Utilities

Co., Miami, Fla. (8/20)

July 8 filed 86,000 shares of common stock, of which
65,000 shares are to be offered for public sale for the
account of the company and 21,000 shares for the ac¬
count of two selling stockholders. Price—To be supplied
by amendment. Proceeds—To be used to reduce indebt¬
edness and

&

increase

working capital. Underwriter—Beil

Hough, Inc., St. Petersburg, Fla.

July

Fortuna

Corp.

—

July 21 filed 1,000,000 shares of
$1.50
ce—

per

for general

and
able

Foto-Video Laboratories,
(par 10 cents).

um

Office

corporate purposes.

stock. Price—
plant and

race

—

Albuquerque,

Price

stock

purposes,

—

um

—

480

New York.

:r—

Foundation
June

18 filed

Balanced

100,000 shares of

market.

of
ition
ares

r

of
jffer
mon

uity

nent

Tl

Fo""d*tion Stock

canning Services, Inc.

Pickle Co.,
stnrt

/„

deru-Hi

of

ouis.
ton,

ash-

,ler

notification) 150,000 shares of common
cenls). Price—$2 per share. Proceeds—For
n' ue5uiPment. inventory and working capital.
Soing & Umon streets, Fredonia, N. Y. Un-

YorlTNU1Ymit Securities> Inc-> 130 William Street,

•Gabriel

Co.

(8/13-20)

fund
purchase nf onUe
30' 1974' with warrants for the
tures
ph/ iftftwmon shares for each $1,000 of deben¬
tures Intp^ D^ of Principal amount of the debenProceeru %
Hate—To be determined by amendment.
Avenue 7^1.
iCagXt^ investment Office—1148 Euclid
srd & Pn
t
A hl°- Underwriters—Prescott, ShepCo., New

York

eland' 3nd ^aid

Aufe3eff,' '"Y®sto»-s
sWes

nf

investment

Loeb' Rhoadea

Trust, Boston Mass.

y- a™endment) an additional 1,000,000

interest in the trust. Proceeds—For




has agreed to exchange

&

454,318

•

Of
the

110,000 by certain stockholders; 12,500 for the
and the remaining 50,000 shaKes are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share. Proceeds—For repayment of debt; purchase of

company;

underwriter;

and facilities and other general corporate
Office—614 Broad St., Utica, N. Y. Under¬
Co., New York. Name
Change—Formerly Eastern Packing Corp. -Offering—

equipment
purposes.

These

Expected in August.

Employees Variable Annuity

Life

2,500,000 shares of common stock (par $1)
by company viz: (1) to holders of common

Co.,

the basis of one

on

(1,-

334,570 shares are now outstanding); (2) to holders of
common
stock (par $1.50) of Government Employees
Life Insurance Co., on the basis of IV2 warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of % warrant per share of
stock held (as of Dec. 31, 1958, there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
at

$28.0374 per share. If all these debentures were
into common stock prior to the record date,

converted

would be outstanding.
and surplus.
Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass.
total of

a

164,733 common shares

Price—$3 per share. Proceeds—For capital
Office—Government Employees Insurance

•

& Co,
16 filed 126,000 shares of common

Grace

June

(W. R.)

being issued in
company

of

stock (par $1)

connection with the acquisition by the
Chemical Co. Statement effective

Hatco

July 17.
Greek Voice

of America,

Inc.

(9/3)

Industries at $6 per share.
In addition, Seaboard may wish to sell publicly the re¬
maining 200,000 shares, or a portion thereof, on the
American Stock Exchange, or otherwise, at prices cur¬

fice

401

—

N. Y.

promotion of Greek language records.

Statement to be

Great Western
June

Of¬

Broadway, New York, N. Y. Underwriter —
Corp., 95 Broad Street, New York,

Securities

Karen

29

filed

amended.

■

Life Insurance Co.

500,000 shares of common

*

(8/28)
stock and op¬

purchase 200,000 additional shares of outstanding
be offered in units, each consisting of five
shares of common stock and an option to purchase two

tions to

stock,

to

employees of Hathaway

and

the

at

rent

time

of

such

Proceeds—To

sales.

selling

Seaboard Allied Milling Corp. Office—
Hathaway Street, Syracuse, N. Y. Underwriter—None.
Statement effective July 27.

stockholder,

Heartland Development Corp.

22,820 shares of 5% convertible preference

June 24 filed
stock

(par $12). Price—Par.

Proceeds—For general cor¬
Street, Albany, N. Y.

Products, Inc.
(letter of notification) 28,800 shares of
common stock (par$l).
Price—$5 per share. Proceeds—
For payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way, New York 4, N. Y.
Offering—Expected in Septem¬
Heliogen

Oct.

1958

22,

ber.

Hemisphere Gas & Oil Corp.

300,000 shares of com¬
Proceeds—
For development oi oil and gas properties.
Office—702
American Bank Building, Portland 5, Ore. Underwriter
—D. Earle Hensley Co., Inc., 4444 California Avenue,
(letter of notification)

April 27

stock.

Price—At

par

($1 per share).

Seattle, Wash.
•

Hickerson

Bros. Truck Co.,

Inc.

(letter of notification) 285,000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—To

March 11
mon

existing liabilities; for additional

pay

working capital.

for
Box

&

Denver,

Co.,

equipment; and,

Office—East Tenth Street, P. (X

Underwriter—Birkenmaye#1
Colo. Offering—Expected sometime in

Great Bend, Kan.

68,

August.

Highway Trailer Industries, Inc. (8/7-13)
9 filed 1,105,294 shares of common stock to be
subscription by present stockholders at the
rate of one new share for each two shares held (with an

June

offered for

oversubscription privilege). Price—To
amendment. Proceeds—To be used for

plant improvement; to be
production requirements of the

and

be supplied by
new

and for

Hazleton, Pa., plant and

production of the Edgerton, Wis., plant;
discharge of bank loan and other corporate pur¬

posed Office—250 Park Ave., New York,
—Van Alstyne, Noel & Co., of New York.
•

equipment

used for inventory and

increased

the

liofman

Laboratories, Inc.

N. Y.

Agents

(8/21)

(letter of notification) 50,000 shares of common
stock (par 25 cents). Price—$6 per share. Proceeds—To
retire a loan from Hillside National Bank and for gen¬

June 12

eral

(letter of notification) 300,000 shares of class B
capital stock (par one cent). ' Price—$1 per share.
Pro¬
ceeds—For production and publicity of Greek language
radio and: television programs and
manufacture; dis¬
July 9

tribution and

Seaboard plans
business associate#

Milling Corp.

100,000 shares for sale to the

to offer

mon

(par $4) of Government Employees Insurance
warrant per share of stock held

stock

by Seaboard Allied

held

writer—'Mortimer B. Burnside &

to be offered

300,000 outstanding shares of common stock.
shares are part of the 672,990 shares (53.43%)

stock (par one

cent), and 50,000 common stock purchase warrants.
the shares 400,000 will be sold for the account of

Nov. 13 filed

Inc.

Industries,

Hathaway

June 9 filed

Underwriter—None.

572,500 shares of common

18 filed

June

Kass, Nassau Securities Service and
Co., Inc., all of New York; and Palin

&

Barnes

porate purposes. Office— 40 Beaver

Packing Corp.

Medal

convert¬
of com¬
to offer

Securities, West Orange, N. J.

Price—

—None.

Gold

(8/24-28)

Inc.

200,000 shares of 6% cumulative

writers—Kenneth

$39.20 per share. Proceeds—For working capital. Office
—Pennsylvania Station, New York 1, N. Y. Underwriter
•

Underwriter

share for each 50c face

David

3,500 shares of common

being offered only to employees.

W.)

(J.

V--

subordinated debentures at the rate of
amount of such debentures
surrendered for cancellation. Proceeds—To be used for
working capital and general corporate purposes. Under¬

Hill, Inc.

stock (par $5)

Service,
Manage¬

Advisory

Investment

outstanding 4%
one

stock for an aggregate of

(letter of notification)

June 23

•

debentiirfpie<^ $2'5T00>000 of subordinated sinking

&

-To,
erai
>ital

(9/9)

l*ar

teral
tock

New

Inc.

Gibbs

•

common

—

200,000 preferred shares and 50,000 shares of the common
in units consisting of 4 shares of preferred and one share
of common. Price—$8.50 per unit. The remaining 50,000
shares of common stock are to be offered to holders of

509,516
shares or approximately 84.9% of the common stock of
Formfit.] - Office—111 Seventh Avenue, North, Nash¬
ville, Tenn. Underwriter—None.
•
Georgia-Bonded Fibers, Inc.
July 10 (letter of notification) 100,000 shares of class A
common stock (par 10 cents). Price—$3 per share.
Pro¬
ceeds—For general corporate purposes. Office—15 Nuttman
St., Newark, N. J. and Buena Vista, Va. Under¬
writer— Sandkuhl
&
Co., Inc., Raymond Commerce
Building, Newark, N. J.

mon

common stock (par $1).

•

Offirp

rent,

Office—

r

ssu-

-To

(par $1).

Hiar^et- Proceeds—For investment. Office—
?n!!n St., Nashville, Tenn. Investment Adviser— J.
pianni
? & Co., Nashville, Tenn. Distributor—Capital

41 p tt

rrnrm

ity.

stock

investment.

Fund, Inc.

APeci 160,000 shares of

Pri!>e

oard

ient

common

Proceeds—For

Nashville, Tenn. Investment Adviser—J.

t>

ucti
in

Inc.

.Bradford & Co.,
Nashville, Tenn. Distributor—Capital
Planning Services, Inc.

ock;
ock.

Fund,

mon

and improved

Insurance Co.

common

$2 per share.

—

[Genesco

shares of its

10

preferred stock (par $2) and 100,000 shares
stock (par 10 cents). The company proposes

ible

on the basis of 0.891% shares of
stock for each share of Formfit com¬

common

stock.

mon

(9/1-4)

Proceeds — For
including the repaying of
bank
loans, the purchase of new equipment, and for
working capital. Office
36 Commerce Road, Cedar
orove
N. J.
Underwriter
Arnold Malkan & Co.,
corporate

Genesco

Government

Inc.

July^15 filed 150,000 shares of class B
general

lies,

common

complete

^nderwr^er—Minor, Mee & Co., Albuquerque,

M'

N

nee

Inc..

share. Proceeds—To

Price—$1 per

Hancock

•

June 25 filed

Co., Chicago, 111.,

fit

Advisor

$300,000. Proceeds—For working capital.
—City Securities Corp., Indianapolis, Ind.

it Genesco, Inc.
July 29 filed 535,000 shares of common stock (par $1),
to be offered to the common shareholders of The Form-

950 Broadway,

ca,

selling stockholder.

(par

stock

• Haag Drug Co., Inc., Indianapolis, Ind.
July 27 (letter of notification) 16,650 shares of common
stock (par $1).
Price—Not to exceed an aggregate of

St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark. Offering—Expected any day.

July 22 filed 1,000,000 shares of common capital stock
Proceeds—For investment. Office—

ay

a

shares of common

250,000

Washington, D. C. Underwriter—Investment
ment Associates, Inc., Washington, D. C.

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine

Price—At market.
on

shares for

filed

4

Investment

of the company

share. Proceeds—For furniture inventory

ng

Financial

of $100 of debentures for each

to be offered for the account

are

and 30,000

Co., Denver, Colo.

cents).
Price—At market. Proceeds—For investment.
Office —1825 Connecticut Avenue, Washington, D. C.

General Underwriters Inc.

shares

riter—None.

:k.

Feb.

/
April 6 (letter of notification) 225,000 shares of com¬
mon capital stock
(par 25 cents).
Of the total, 195,000
•

stock,
>f which 1,700,000 shares are to be offered publicly, and
he remaining 99,186 shares have been subscribed for
n consideration for services rendered in organizing the
company as an incentive to management. The company
las agreed to issue to the organizers 200,000 shares of
:lass B common stock; and 100,000 class B shares have
been set aside for issuance to keep personnel other than
he organizers. Price—To public, $3 per share. Proceeds
To be applied to pay interest due on properties and to
urchase new properties and for working capital. Under-

;ent

(8/10-14)

of stock held of record Aug.
expire Aug. 24, 1959.
Price—To

to

&

Growth Fund of America, Inc.

New York.

une

>ut-

Purvis

April 24.

shares

rights

W.

N.

111

writers—G.

7, 1959;
be sup¬
plied by amendment. Proceeds—To be added to the gen¬
eral funds of the company and be used primarily to fi¬
nance electric transactor system developed by its Stromberg division. Underwriter — Kidder, Peabody & Co.,
eight

Fidelity Investment Corp., Phoenix, Ariz.
29 filed 1,799,186 shares of class A common

ice
em

Corp.

at the rate

stockholders

:ommon

■

Time

General

used

be

balance will
Office—101Second St., Oklahoma City, Okla. Under¬
J. Mitchell, Jr. Co., Washington, D. C.; and

Building & Loan Corp.); and the
to increase capital and
surplus.

Western

July 8 filed $6,260,700 of convertible subordinated deben¬
tures due 1979 to be offered for subscription by common

fuly 16

od,

Merchandising Corp., Memphis, Tenn.
250,000 shares of class "A" common stock
cent).
Price—$10 per share. Proceeds—For

Statement effective

Tenn.

or

200,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
ment.
Proceeds—For
loan
to
the subsidiary
(Great

working capital and general corporate purposes. Under¬
writer— Union
Securities
Investment
Co., Memphis,

tmended.

ion

Main

Ferman

one

on

Aug. 28, 1959; rights to expire on or about Sept.
28, 1959. The options evidence the right to purchase the

filed

18

shares

about

General
Feb.

Corp., Newark, N. J.
; une 23 filed 220,000 shares ot common stock (par five
\ ents). Price—$6 per share. Proceeds—To be used for
urchase and construction of machinery and equipment,
mderwriters—Charles Plohn & Co. and Netherlands Se¬
curities Co., Inc., both of New York. Statement to be

be

L.

offered for subscription

by holders of the 1,500,000 outstanding common
at the rate of one unit for each 15 shares held

St., Belleville, N. J. Underwriters—
& Co., Inc., Miami, Fla. and Casper
Rogers Co., New York, N. Y.

Robert

4 Paradyne Electronics

To

additional shares, the units to be

• General
Magnaplate Corp. (8/11)
July 9 (letter of notification) 75,000 shares of common
stock (par 50 cents).
Price—$4 per share. Proceeds—
For expansion of plant facilities and working caiptal.

8Lly

41

(553)

The Commercial and Financial Chronicle

Lexington^ Avenue,

rs

*

. . .

reduction of outstanding indebtedness. Office¬
New York.
Underwriter —

nd the

esi

Number 5870

190

Office — 5 Evans Terminal,
Underwriter—Myron A. Lomasney & Co.,

corporate purposes.

Hillside, N. J.
New York,

N. Y.

& Draying Co., Ltd.
shares of common stock, to be of¬
for subscription by stockholders of record April

Honolulu Construction
June
fered

16 filed 25,000

1959, on the basis of one new share for each five
held. Rights to expire on or about July 30.
Price—$40 per share. Proceeds—To be applied to repay¬
ment of bank loans and for company's capital expendi¬
30,

shares then

ture program

and investment.

Underwriter—None.

Office—Honolulu, Hawaii.
4t%

#

Continued

on page

42

42

(554)
The Commercial and Financial Chronicle

Continued from page 41
Hotel Corp. of Israel
13 filed 39,000 shares of common
and $1,560,000 of 6% subordinated

July

year, 3% per unit; series C, $1,000,000,
four-year 4% p«
unit; and series D, $3,500,000, 6-year, 5%

—100%
stock

(par

$5)
debentures, due Aug.
1, 1974. Price—$1,500 per unit, consisting of 30 common
shares at $10 per share and
$1,200 of debentures at par.
Proceeds—To purchase, complete, and furnish various
properties and for general corporate purposes. Office—
11 South La Salle
St., Chicago, 111. Underwriter—None.
Houston Lighting & Power Co. (8/19)
July 23 filed $25,000,000 of first mortgage bonds due
1989. Proceeds—To repay the
major portion of the com¬

pany's outstanding short-term bank loans, which were
incurred to finance the company's construction
program.
Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman
Brothers, Eastman Dillon, Union Securities & Co. and

International

April 16

of

account

a

selling

Co

the

—

New York.

(8/28)
June 29 filed 600,000 shares of
common stock. Price—
$2.50 per share. Proceeds—To further the
and

poses

in

corporate pur¬

the

preparation

of

the

enfranchising of bottlers, the local
motion

and

advertising

of

its

concentrate

and

national

beverages,

necessary to make
704 Equitable

and

and
pro¬

where

loans to such
bottlers, etc. Office—
Bldg., Denver, Colo. Underwriters— Pur¬

vis &

Co. and Amos

C.

Sudler

&

Co., both of Denver.

Colo.

• Ideal
July 31
shares

Cement Co.
to

675,000
be

shares

of

capital

stock.

These

exchanged for all

(but not less than
(par $1) of the Volunteer
—

Independent Telephone Corp.

June 29 filed 13,080
shares of 5% cumulative convertible
preferred stock, series A ($10
par), and 806,793 shares
of common
stock, together with warrants for the
pur¬
chase
of
50,000 common shares.
According to the

prospectus, 80,000
payees

standing in
such

notes

of

the
into

common

shares

non-assignable
amount

of

common

to

are

be

offered

convertible

$500,000

shares

at

for

notes

to

out¬

conversion

of

a

conversion price
$6.25 per share.
The 13,080 preferred
shares and
8,175 common shares are to be
offered in exchange for
the
outstanding 327 shares of common stock of
Farmers
Union Telephone
Co., a New Jersey corporation, on the
'basis of 40 shares of
preferred and 25 shares of
of

each

Union.

96,604
of

share

The

common

of

common

common shares to

record

capital

stock

issuing company further

June

30,

1959,

of

Farmers

proposes

to

offer

holders of its
outstanding stock
for subscription at

$6.25 per
the basis of one
new share for each
two shares
then
held.
Proceeds—For working
capital.
Office¬
rs South St.,
Dryden, N. Y.
share

on

Underwriter—None.

Industrial Leasing
Corp.
1
(letter of

June

notification)

$50,000

$200,000

subordinated

debentures ($1,000
denomination) and
subordinated convertible 6%
debentures ($500

denomination).

Price—100%

ceeds—For working
capital.
nue, Portland 4, Ore.

of

principal

Underwriter—May

land, Ore.

amount.

Pro¬

Office—522 S. W. 5th Ave¬
&

Co., Port¬

•

Industrial Plywood
Co., Inc. (8/17)
June 25 filed
60,000 shares of 6% cumulative
preferred
stock
($10 par—convertible until
Aug. 31, 1969), with
common
stock

purchase warrants.
ferred will have one
"A" and
one

entitling the holder
(for each two "A"
June

to

30, 1961; and for

$14 per
share.

purchase

warrants)
each

share
"B" warrant

one

at $12
two

Each

share

per

"B"

share, expiring June 30, 1961.
Proceeds—Toward reduction of

of

pre¬

attached,

of

common

share, expiring

warrants

held

Price

$10

—

short-term

at

per

bank

loans; to liquidate long-term
debt; and the balance for
additional working capital.
Underwriters
Standard
Securities Corp.
Irving Weis & Co., and J. A.
Winston
&
—

Co., Inc., all of New York;
Bruno-Lenchner Inc., Pitts¬
Pa.; Netherlands Securities
Co., Inc., New York:
and Plymouth
Bond & Share
Corp., Miami, Fla.

burgh

:•

Infrared

Industries, Inc. (8/26-28)
filed 100,000 shares
of common
stock. Price—
To be supplied by
amendment. Proceeds—For
expansion
and
working capital.

July 29

writer—Lehman

Office—Waltham,

Brothers, New

International Bank,
Washington.
Dec. 29 filed
$5,000,000 of notes (series




Mass.

Under-

York.
D.

C.

B, $500,000, two-

other

Inc.

Under

then

held; rights to

expire

supplied by amendment.

Sept.

oil

15.

Price—To

Proceeds—For'general

be

corpo¬

including the equipping and stocking and

construction

of

stores.

new

Office

—

5165

Development Co., Inc.

filed 105,000

shares of

—

>

common

stock

(par $1).

Price—$10 per share. Proceeds—To be used for the
pur¬
chase of land,
cattle, machinery and equipment, fishing
lodge, and development expense. Office
1841 North
Meridian St.,
Indianapolis, Ind. Underwriter—None.
—

Jefferson

Wire & Cable
Corp.
May 27 filed 100,000 shares of common stock
(no par).
Price—$3.75 per share. Proceeds
To

off various

pay

indebtedness, for purchase of machinery, equipment and
raw
materials, for plant facilities, for sales
promotion,
and for
working capital. Office—Sutton, Mass. Under¬
writers—Charles Plohn & Co. and Netherlands
Securi¬
Co., Inc., both of New York. Statement to be

ties

with¬

drawn.

:'

•

•

v,:

Kaiser

Aluminum & Chemical
Corp.
May 11 filed 64,028 shares of 4%% cumulative
convert¬
ible (1959
series) preference stock (par $100) and
128,-

051 shares of common stock
(par 33V3 cents) issued in
exchange for the outstanding stock of Mexico
Refrac¬
tories Co. through
merger.
Proceeds—To selling stock¬

holders.

Underwriter—None. Statement effective

June 5.

^ Kandahar Lodge, Inc.,
Manchester, Vt.
July 27 (letter of notification) $125,000 of
20-year 6%
debentures, to be offered in denominations of
$1,000
each.
Each holder is entitled to

when

a

issuer

10% reduction in rates

(company) is not engaged in joint promo¬
plans.
Price—At par.
Proceeds—For expenses
incidental in operating a hotel.
Underwriter—None.
tional

it Keystone Custodian Fund, Inc.
Aug. 3 filed (by amendment) 2,000,000 additional
Key¬

stone

Custodian

Series

S4.

Fund
Certificates
of
Proceeds—For investment.

Mass.

Participation,

Office—Boston,

8

(W. S.)

filed

1960 Co.

$3,500,000 of Participating Interests under

Participant Agreements in the company's 1960 Oil
and
Gas Exploration
Program, to be offered in.amounts of
$25,000 or more. Proceeds—Acquisition of
undeveloped
oil

and gas
west Bldg.,

properties. Office—2306 Bank of the South¬
Houston Texas., Underwriter—None.

Laure Exploration
Co., Inc., Arnett, Okla.
April 30 filed (by amendment)
2,000,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—For
machinery and equipment and exploration
purposes.

Underwriter—None.

(par $1),
company's
account and
70,000 shares for selling stockholders. Price
—To be supplied
by amendment. Proceeds—The com¬
pany will use its share of the
proceeds to increase work¬
ing capital. Office— 7 Central Park
West, New York.
Underwriter—Hayden, Stone & Co., New York.
sold

Lee

National

Life

Insurance

for

the

Co.

basis

of

one

new

share for .each

share held
during
ending June 25, 1959. Price—$5 per share to
stockholders; $6 per share to the public. Proceeds—To
the period

increase

capital

and

surplus.

Boulevard, Shreveport, La.
•

Leeds

Washington
underwriter.

of Canada Ltd.

also

to

are

be

offered

to

share¬

invest¬

series

|$100 per share).
Offici—306 Mendocino
writer—None,

A

common

stock.

Price

pre¬

—

At

Proceeds — For working capital.
Ave., Santa Rosa, Calif. Under¬

Travelwear, Inc.

Office —1706

Centenary

Underwriter—None.

Aug.^ filed 124,000 shares of capital
supplied
y

by

amendment.

increase

and

—

Price—To be

To

Loan

enable

the

Association to

its

balance

stock.

Proceeds

wholly-owner Lytton Savings
to

lending and investment capacity, with the
be retained
by the issuing company and
working capital. Office—7755 Sunset Boule¬
vard, flolly wood, Calif. Underwriter—William R. Staats
added, to

&

Co§ Los Angeles, Calif.

m|&

"i

S. Oils Ltd.

May il filed 390,000 shares of capital stock. Price—60
cents per share.
Proceeds
For exploration,
develop¬
ment Fand acquisitions.
Office—5 Cobbold Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities Ltd., Regina,
Saskatchewan, Canada.
—

•

Magnuson Properties, Inc. (8/17-21)
26 filed 500,000 shares of class A common
stock. /
be supplied by amendment.
Proceeds—$443,071 is'to be expended
during the period ending Aug. 31,
1960, for mortgage payments and releases; $465,000 will
be paid on notes acquired
by members of the Magnuson
June

Price—To

family in the transfers of subsidiaries and properties to
the company; $350,000 will be used to
pay off an exist¬
ing loan secured by a mortgage on the Florida Shores
properties in Edgewater, Fla., and an assignment of a lot
contract receivable; about $150,000 for the construction
the. first four stories of the company's proposed office

of

building in Miami (the balance estimated at $150,000
will^e secured by a mortgage on the building), and
$93,|p0 to close certain options and purchase contracts

coveting

lands in the Melbourne-Cape Canaveral

Theibalance will

be

added

to

area.

the

company's general
fun$s and will be available, together- with funds', receivted from payments on lot sales,
principally for the
development of the Palm Shores properties (at Eau
Galpe) and for further acquisitions, and for use as
working capital. Office—20 S. E. 3rd Ave., Miami, Fla.
Underwriter—Blair & Co., Inc., New York.
;
.

v

.

Matronics, Inc.

(8/26)
200,000 shares of capital stock (par 100).
Pri|e—$3.75 per share. Proceeds—For sales promotion,
production test equipment, research and development,
demonstrators for special systems, receivables, inven¬
Junfe 29 filed

notes

and

other

—5§8 Main St., Westbury, L. I.,
Veriftilye Brothers, New York.

Office
Underwriter—

purposes.

N. Y.

Maturizer Co.
.

June 1 (letter of notification) $250,000 of 6% convertible
subordinated debentures due July 1,
1964, and converti¬
ble! into units of common stock which consist of one
share of class A, voting, and three shares of class B,

non-voting stock at $40

per

machinery and equipment
dress—P.

O.

Boi

755,

unit.

Proceeds—To purchase

and for working capital

Norman,

Okla.

Ad¬

Underwriter—

None.

Medearis Industries, Inc.
14 filed 200,000 shares of
cents). Price—$3.75 per share.

May

stock

20
general
corporate purposes. Office — 42 Broadway, New York,
NhfY. Underwriter—Amos Treat & Co., Inc., New York.
Offering—Expected in September.
common

(par

Proceeds—For

Mercantile Acceptance Corp. of California
Ma^, 15 (letter of notification) $80,000 of 12-year 5/s%
capital debentures.

Price—At face

amount.

Proceeds—

For/Working capital. Office
333 Montgomery Street,
SanvFrancisco, Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif.
<_
•

Michigan Bell Telephone Co.

July 21 filed 262,500 shares of class A
common
stock
(par $1). Price—To be
supplied by amendment. Pro¬
ceeds—To reduce indebtedness
and for general
corporate
purposes. Office—New York
City. Underwriter—Auchincloss, Parker & Redpath, New York.

(8/11)

July/21 filed $30,000,000 of 35^year debentures, due Aug.
1, 19jD4. Proceeds—It is expected that about $25,000,000
of the proceeds will be used to
repay advances from

American

(8/17-21)

:£fs

r-

—

11 filed

200,000 shares of common
stock, to be of¬
fered for
subscription by holders of outstanding stock on
the

.

•

Lease Plan International
Corp. (8/12)
July 10 filed 140,000 shares of common stock
of which
70,000 shares will be

June

shares

tories, prepayment of

Kilroy
June

The

par

(par $1),

Boulevard,
Jacksonville, Fla.
Underwriter
Pierce, Carrison, Wulbern, Inc.,
Jacksonville, Fla.

•

as

.

Lytton Financial Corp.

stock

Beach

15

equipment; advertising

Underwriter—First

of

ferred cumulative

corporate

to stockholders of record as of
Aug. 28,
the basis of one new share for each two
shares

on

June

Proceeds—

Lumberman's Acceptance Co.
July p.3 (letter of notification) 2,UuO shares of $7.20

(8/31)

common

—

filed

are

80%) of the common stock
Portland Cement
Co., in the ratio of 3% shares of Ideal
stock for each share of
Volunteer stock.
Office
500
Denver National Bank
Building, 821 17th Street, Denver,
Colorado.

nine

for

offered

1959,

Jamaica

capital.

share.

per

Loomis-Sayles Mutual Fund, Inc., of
record
July 15, 1959. After July 31,1959, the
offering price will
be net asset value. After
Sept. 15, 1959, shares will be
offered only to shareholders of
Loomis, Sayles & Co.,
Inc., and its affiliated companies. Proceeds—For

Sask., Can.
Regina, Sask., Can.

^ Jackson's Minit Markets,
July 30 filed 223,000 shares of

possibly the

I C Inc.

also

—

rate purposes,

J

%

ment.:.

Office—1950 Broad St.,
Regina,
Underwriter
Laird &
Rumball,

be

record

public

Exploration, Ltd.

properties;

to

latter.

holders

writer—None.

purposes.

reduction

•
Hugh W. Long & Co., Inc. (8/12)
July 15 filed 280,000 shares of outstanding class B com¬
mon stock
(par 50 cents).yPrice — To be supplied
by
amendment.
Proceeds—To selling stockholders. Office
—Elizabeth, N. J. Underwriter
Clark, Dodge & Co.,

,

'

July 31, 1964, to be offered in units of $1,000. Prie«
—At 100% of
principal amount. Proceeds—For invest¬

promotional programs, and as additional
working capi¬
tal. Office—37 West 65th
St., New York, N. Y. Under¬
writer—J. A. Winston &
Co., Inc. and Netherlands Se¬
curities Co., Inc. ■'

in

working

Loomis-Sayles Fund

April 24 filed 225,000 shares of common stock.
Price—90
cents per share. Proceeds—To
defray the costs of explo¬
ration and development of
properties and for the ac¬
quisition of other

ized

be
one

fered

due

Irando Oil &

to

of

the

July 6 filed 800,000 shares of common
stock, to be of¬
initially at $25 per share through Loomis,
Sayles &
Co., Inc., to clients, officers, directors and
employees of

i

y;A

Price—$5 per share. Proceeds—To be util¬
of
obligations, the acquisition and/or
development of additional inventory lines,
warehousing
facilities and sales
outlets; the adoption of various sales

stockholder.

A

and

Investors Funding Corp. of New York
(8/20)
Feb. 17 filed $500,000 of
10% subordinated debenture

Office—511 Fifth Ave., New
York, N. Y.

basis
of

common

(par 10 cents).: Price—$2
purchase of machinery and

Corp,, Pittsburgh, Pa., has withdrawn

•

ment.

as

Proceeds—For

stock
For

(par 50 cents)//'Pricedshare
equipment and working 'capital.
Offic*
&

stock,"

the

on

shares owned

Lifetime Pools Equipment
Corp., Renova, Pa.
(letter of notification) 150,000 shares of

A common stock

•

75,000 shares for the

•

■i

June 1

and

Underwriter—Gates, Carter

common

—Plymouth Bond & Share Cbrp.,
Miami, Fla.

development costs and working capital. Office—415
Spruce St., Hammond, Ind. Underwriter—None.
International Tuna Corp. (8/12)
e;;
April 3 (letter of notification) 17o,U00 shares of clas*
Proceeds—For

1959

Corp.

shares will be offered to
the

share.

per

6

inventory and for
.working capital. Office—Jacksonville, Fla.
Underwriter

of notification) 82,626 shares of com¬
$1) being offered .for subscription by
stockholders at rate of one new sharh for each
four shares held on June
1, 1959. Rights expire on Aug.
14,-1959. Price—$3 per share. Proceeds—For research

June

company and

date.5 Unsubscribed

Price|-$4

Weighing Corp.

(par

—Pascagoula, Miss.
Gulfport, Miss.

Thursday, August

.

Window

|hare for each two

,new

common

Aug. 19.

Hudson Radio & Television
Corp. (8/10-14)
8 filed 200,000 shares of
capital stock, of which
125,000 shares are to be offered for the account of the

Railroads

Aluminum

.

July^S . filed 157,494 shares of
offered initially to stockholders

(letter

stock

mon

Inc.;
(joint¬

on

per unit). Prhx
Proceeds —For workini

amount.;

Underwriter—Johnston, Lemon & Co., Wash
Ington, D. C. Offering—Indefinitely postponed. ? '
;

ly); Kidder, Peabody & Co. and Equitable Securities
Corp. (jointly). Bids—Expected to be received
up to
(EDT)

principal

capital.

Salomon Brothers & Hutzler
(jointly); Blyth & Co.,
Lazard Freres & Co. and The First Boston
Corp.

noon

of

Lenahan

.

remainder

Telephone
will

be

and

used

the

and that the
general corporate purposes,

Telegraph

for

Co.,

including

construction. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Gte«foic., and
Morgan Stanley & Co., both of New York.

Bids—To be received up to 11
9Q1 ^

1

a.m.

Npui

(EDT)

Vnulr

N

on

Y.

Aug. 11 al

l

;vif"

k

Number 5870

190

Volume

. .

.

IVSicronaire Electro Medical Products Corp.
(8/17-21)
June 1 filed 200,000 common shares (par 10 cents) and
50,000 one-year warrants for the purchase of common
stock, to be offered for public sale in units of 100 shares
of common stock and 25 warrants. The registration also
includes an additional 200,000 three-year warrants, exer¬
cisable at $3, of which 150,000 have been issued to cer¬
tain stockholders and employees. Price—$275 per unit.
Proceeds—To discharge indebtedness; for expansion of
sales efforts; and for working capital. Office—79 Madi¬
son Ave., New York.
Underwriter — General Investing
Corp., New York.
Microwave Electronics Corp.

Nationwide

•

•

plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬

§

and the remainder for working capital.
Office—4061 Transport St., Palo Alto, Calif. Underwriter
ing expenses,
—None.

—

Mid-America Minerals, Inc.

$921,852 of Working Interests and Over¬

June 22 filed

riding Royalty Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest being producing interests and some non-

producing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
ment in oil and gas lands.

Office—Mid-America Bank

Bldg., Oklahoma City, Okla.
Credit

mobile

June 8 filed
for sale in

the

for

Underwriter—None,

Corp.

15,000 shares of common stock to be offered
and Pennsylvania. Price—$10 per

Michigan

Proceeds—To provide additional working capital

share.

of

purchase

vendors'

interests

in

Office—Hartsdale, N. Y.

conditional

Blvd., Los Angeles 17, Calif. Under¬
Co., San Francisco 4, Calif., has

&

proposed underwriter.

Nedow Oil Tool Co.

■

May 5 (letter of notification) 150,000 shares of common
stock (par 50 cents). Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.

Detroit, Mich.
:/:•.

•

Under¬
r/f/'.;-v:/1,000,000

shares of beneficial interest in the fund. Price—At

Pacific Coal

then

current

Exchange.
ment of

Ltd.

& Oils

market

Proceeds—To

price

on the American Stock
bank loans, for develop¬

repay

properties, and for general corporate purposes.
Street, Toronto, Canada. Underwriter

Office—145 Yonge
—None.

//;

-.■

it New West Amulet Mines Ltd.

(9/7-11)
July 30 filed 200,000 shares of outstanding capital stock
(par $1). Price—To be related to the current market
price on the Canadian Stock Exchange at the time of the
offering. Proceeds—To selling stockholder. Office—244
Bay Street, Toronto, Canada.
Underwriter—Willis E.
Burnside

&

Co., Inc.,

New

York.

•

Narda Microwave

June

16

Corp.

filed

50,000 shares of common stock (par 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.

The statement also

shares

of

common

stock

includes

reserved

an

for

Canada, Ltd. (8/10-14)
1,000,000 shares of common stock (par 34
Price—At net asset value, plus underwriting
and

commissions.

Underwriter—Carl M.

Nord

Proceeds—For

investment.

Loeb, Rhoades & Co., New York.

Photocopy & Business Equipment Corp.

additional 10,000
issuance to key

employees pursuant to options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank
loans. Underwriter—Milton D. Blauner & Co., Inc., New
York.
/>//
■
National Citrus Corp.

April 20 (letter of notification) 150,000 snares of com¬
mon stock.
Price—At par ($2 per share).
Proceeds—
For new equipment, inventory and
working capital. Ad¬
dress—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc.,
Detroit, Mich. Offering—Ex¬
pected in August.
^National Industrial Minerals Ltd.
Aug. 4 (letter of notification) 15,000 shares of common
stock. Price—$1 per share.
Proceeds—To retire indebt¬

North American

Acceptance Corp.
(letter of notification) $300,000 of 6% 10-year
subordinated debentures to be offered for subscription
by stockholders in denominations of $100, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par.
Proceeds—For working capital. Office—Suite 487,
795 Peachtree Street, N. E., Atlanta, Ga. Underwriter—

-April 29

' v.;

None.
.•

**

/

4

■

' '■

*'1

.'If"

'

it North American Cigarette Manufacturers, Inc.
July 29 filed 150,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For working capital, advertising and sales expenses,
and
additional machinery.
Office—521 Park Avenue,
New

Underwriter—American Diversified Mutual

York.

Securities

Co., Washington, D. C.

Northern States Power Co.

edness for construction of plant and for other
liabilities,
and the remainder will be used for

July 7 filed $10,996,000 of 4%% convertible debentures,
to
be
offered
for
subscription
by
common
stock¬
holders
on
the
basis
of
$100
principal amount of
debentures for each 40 shares of common stock held of
record

July 23

—

Laird

&

Regina,

operating capital.
Canada. Underwriter-

Saskatchewan,
Ltd., Regina, Saskatchewan, Canada.

Rumball

National Lead Co.
June 29 filed
28,863 shares of common stock. On June 23,
19a9 National Lead entered into an
exchange agreement

providing for the acquisition of the assets of Goldsmith.
Bros.; Smelting & Refining Co., of Chicago, subject to the
requisite approval of the stockholders of
Goldsmith, and
the dissolution and

liquidation of Goldsmith. Under the
agreement, National Lead will acquire the assets, prop-,
erty and business of Goldsmith in Exchange for
30,000
shares of National Lead common stock
(or such lesser.
number as provided for in the
agreement) and the as¬
sumption by National Lead of certain liabilities of Gold¬
smith. ./The
will

prospectus lists

receive

a

number

of

persons

and

may sell the National Lead stock
by them under the agreement.
National Packaging Corp.

who
re¬

ceived

.

uly 10 (letter of notification) 32,800 shares of common
stock
(par $1). Price—$5 per share. Proceeds—To pur¬
chase
machinery and equipment, raw materials, inven¬
tory and for

Ave.,

Fort

working capital. Office — 3002 Brooklyn
Underwriter—First Securities

Wayne, Ind.

.t-orp/, 510 Lincoln Tower, Fort Wayne, Ind.
•

National Sports Centers, Inc. (9/2)
uly 2 filed $1,000,000 of 6% convertible
incomei debencumulative due 1969, series C, and
100,000 common
purchase

■

mount.

.

lunos

Price

—

100%

of

principal

be used for completion of and/or

i_°l cer^ain bowling alley and other

ana+u
»

warrants.

Proceeds—To

properties,

e balance will be added to the company's general
available for development of properties and the
development of additional bowling propOffice—55 Broadway, New York.
Underwriter-

acquisition, and
rues.

general

Investing Corp., New York.

,T„Ka1ti°!,,WAde Auto Leasing
ctnAt
For
nnrr>

W

f*

/

System, Inc.

(letter of notification) 142,500 shares of common
.10 cents). Price—$2 per share. Proceeds—

nanCTn^
leaSe(t cars and fc>r general corporate
devwriter—:Investment Bankers of America,

iUn^^on'

lattfix
matter part of
August.




—Expected during the

952,033 shares of common stock being of¬
stockholders of record
the basis of one new share for each 15 shares

held; rights to expire
Proceeds

share.

—

on

For

Price—$22 per
expendi¬
then existing bank

Aug. 11, 1959.

construction

tures, including the payment of any

program

loans

(estimated at $14,000,000). Underwriter—Merrill
Lynch, Pierce, Fenner & Smith, Inc.
•

Northwest
S.

Defense

Dakota

Minerals, Inc., Keystone,

struction
&

•

York, N. Y.

Sewerage Co. (8/14)
(letter of notification) $145,000 of'5%% first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay to Oak Valley, Inc. a portion of the cost of
construction of sewerage collection and disposal system
Oak Valley

June

program.

Co., New York.
Products, Inc., Pacolet, A. C.

Paco

shares of common stock (par $1).
amendment. Proceeds—To pay
bank loans and for general corporate purposes.
Under¬
writers—A. M. Law & Co., Spartanburg, S. C., and Clark,
Landstreet & Kirkpatrick, Inc., Nashville, Tenn.
30 filed 200,000

Price—To be supplied by

(8/24-28)
class A common stock, of
110,000 shares are to be offered for the account
company and 40,000 shares are to be offered for

if Paddington Corp.

of the

the account of a selling

stockholder.

Price—To be sup¬

plied by amendment. Proceeds—To repay bank loans, with
the balance, if any, to be added to working capital. Office
—630 Fifth Avenue, New York. Underwriters—Lee Higginson Corp. and H. Hentz & Co., both
filed

29

June

ordinated
holders

a

basis

of

1979, being offered to stock¬
of debentures for each 14

$100

shares

of capital stock held

exipre

on

July 29, 1959; rights to
of principal amount.
addition to working capital,
on

Price—100%

12.

Aug.

sub¬

convertible

4%%

of

$46,971,000

debentures due

on

of New York//

World Airways, Inc.

Pan American

•

a portion of the funds required in connection with
acquisition of jet-powered aircraft, including all

as

or

the

aircraft and related flight and ground equipment,
Underwriters — Lehman Brothers and Horn-

cargo

both.

or

both of New York.

blower & Weeks,

Participating Annuity Life Insurance Co.
June 4 filed $2,000,000 of variable annuity policies. Pro¬
ceeds
For investment. Office — Hathcock Building,

Fayetteville, Ark.

Underwriter—None.

Peckman Plan Fund,

May

_

Inc., Pasadena, Calif.

19 filed 20,000 shares of common stock (par $1),
market.
Proceeds—For investment. Under¬

Price—At

writer—Investors Investments Corp.,
•

Petrosur Oil

Corp.

Pasadena, Calif.

(9/15)

July 15 filed 100,000 shares of common stock (par 10
cents) and 100,000 shares of 6% cumulative convertible

preferred stock (par $5). Price—$6.20 per

(8/13-14)

May 4 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For exploring and recovering strategic metals and pro¬
ducing same. Underwriter—Caldwell Co., 26 Broadway,
New

1959.;

Proceeds—For con¬
Underwriter—Ladenburg, Thalmann

—

June 9 filed

on

1959; rights to expire on Aug. 27,

Aug. 5,

Price—At 100% of principal amount.

fered for subscription by common

Office

V

Light Co.

Proceeds—To be used as an

j

t

//;/;,

Pacific Power &

which

100,000 shares of common stock (par 10
Price—$5 per share. Proceeds—To reduce bank
debts and for general corporate purposes.
Office—New
Hyde Park, L., I., New York. Underwriter—Myron A.
Lomasney & Co., New York.
cents).

-

•

July 31 filed 150,000 shares of

(8/19)
July 21 filed

(8/10-14)

New York, N. Y.

ington, D. C. Offering—Expected any day.

June

New York Capital Fund of

cents).

mar¬

Proceeds—For investment.

ket.

Oreclone Concentrating Corp.,

May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds — For repayment
of outstanding obligations and for working capital. Un¬
derwriter—Investment Bankers of America, Inc., Wash¬

Aug. 25.

New

Texas. Underwriters—

Offering—Expected in about 30 days.

June 11 filed

discounts

it Mutual Trust, Kansas City, Mo.
Aug. 4 filed (by amendment) an additional

—

the

To be designated.

Office~rll746 Appleton Avenue,

w/'-./

(letter of notification) $300,000 of 6% subordi¬
debentures due July 1, 1964 to be offered
in denominations of $1,000 each. Price—At face amount.
Proceeds
For
working capital.
Office — 410 S. 7th
Street, Lincoln, Neb. Underwriter — Ellis, Holyoke &
Co., Lincoln, Neb.
nated coupon

1,265,000 shares of common stock, of which
1,000,000 shares will be offered for the account of the
company; 100,000 shares will be offered for the account
of a selling stockholder
(Albert Mining Corp. Ltd.);
and the remaining 165,000 will be paid as additional
compensation to brokers and dealers. Price—Related to

Address—P. O. Box 672, Odessa,

June 30 filed

.■-

Olson Construction Co.

^ Pacific Gas & Electric Co. (8/25)
July 31 filed $65,000,000 of first and refunding mortgage
bonds, series EE, due June 1, 1991. Proceeds—For prop¬
erty additions and improvements and the retirement of
$36,500,000 of short-term bank loans incurred for tem¬
porary financing of such activities.
Office—245 Market
Street, San Francisco, Calif. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: The
First Boston Corp. and Halsey, Stuart & Co. Inc. (joint¬
ly); Blyth & Co., Inc. Bids—Expected to be received on

•

writer—None.

Trade

July 29

fice—1250 Wilshire

as

tional

Un¬

"

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬
penses and first three months' operational expenses. Of¬

withdrawn

share.

per

loans and for investment purposes.

500,000 shares of capital stock (par 50
$1 per share. Proceeds — For working

writer—Waldron

43

Proceeds—To retire bank
Office—513 Interna¬
Mart, New Orleans, La. Underwriter —
Lindsay Securities Corp., New Orleans, La.
Price—$2

cents.

Investing

—

sales contracts and other like evidences of indebtedness.

P

Capital

derwriter—None.

$10,000 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the company's restricted stock option

B,fp

Business

r

■

capital and investments.

July 1, 1969 together with 250,000 shares of
stock (par 10 cents) to be offered in units of

common

Price

cents).

due

tures

Small

Corp.
April 24 filed

$500,000 of 10-year 5% subordinated deben¬

July 2 filed

(555)

The Commercial and Financial Chronicle

30

pay the costs and expenses of financing.
Office
Main St., Mantua, N. J.
Underwriter—Bache &
Co., New York, N. Y.

unit, each unit

consisting of one share of preferred at $5 and one share
of common at $1.20
Proceeds — From the sale of the

preferred stock to Petrosur for working interests in oil
and gas leases; from the sale of the common stock to
Creole Explorations, Inc., the selling stockholder. Office
—161 E. 42nd Street, New York.
Underwriters—Sim¬
mons & Co., and Michael Horowitz, both of New York.
Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock,
offered for subscription by holders of outstanding
at the rate of one new share for each two shares

being
stock
held.

1959; right expire July 31, 1959.
Proceeds—For working cap¬
Cervantes, Manila

and to

Record

—330

Price—13^ cents per share.

•

Water Co. (8/14)
(letter of notification) $125,000 of 5J/2% first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost of
construction of the water supply and distribution sys¬
Oak Valley

June

expenses

•

J.

of

financing.

Underwriter

Ohio

Oil Co.

—

Office—330 Main St., Mantua,
& Co., New York, N. -Y.

Bache

Ohio

22

Oil

filed

2,

Underwriter—None.
Corp., College Point,

(letter of notification) 200,000

L. I., N. Y.
shares of common

Proceeds—

stock (par 10 cents). Price—$1.50 per share.
Purchase and installation of machinery; electronic

ana

optical test equipment; purchase and installation of fix¬
tures and for working capital.
Office — c/o McNabb,
Sommerfield & James, 40 Exchange Place, New York,
N. Y. Underwriter—M. H. Woodhill, Inc., New York,
Y.

.

874,422

common

June

Photronics
June 9

N.
,

capital stock
(without par value). The company has agreed with the
holders of the outstanding shares of Aurora Gasoline Co.
to
exchange 25 shares of Ohio Oil common for each
share of preferred stock of Aurora; 5.78438 shares of
June

date

Office—Soriano Building, Plaza

(P. I.).

30

tem; to pay the cost of a new 12 inch well to increase
the company's supply of water; and to pay the costs and
N.

ital.

for

shares

each

of

common

share

of

common

stock

of

Aurora; and 5.78438 shares of Ohio Oil common for each
share of class A common stock of Aurora. Statement ef¬
fective July 20.

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common

•

Pioneer

Finance Co.

(8/11)

_

principal amount of debentures and a-warrant entitling
the holder to buy 75 shares of common stock. Price—lo
be

Proceeds—For general cor¬
Office—1400 National Bank Building,

supplied by amendment.

porate purposes.

Continued

stock (par 35

,

13 filed $1,000,000 of subordinated capital deben¬
tures due Aug. 1, t1971 (with warrants to purchase 75,000
shares of
common
stock). The securities are to be
offered for public sale in units, each consisting of
*

July

on page

4.4

44

(556)

The Commercial and Financial

Continued from, page 43

r

accordance with its agreement with Brooks and certain
its stockholders who
own
an
aggregate of 18,805
of its outstanding
common stock,
or approxi¬

.

invest

—

mately 62.5% of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the registration statement.
'

it Polycast Corp.
July 29 (letter of notification)

99,000 shares of common
(par $2.50). Price—$3 per share. Proceeds—To be
used for modification of plant facilities and for
working
capital. Office — 69 Southfield Ave., Stamford, Conn.
Underwriter—Lee Co., New York.

.

stock

•

(William H.) Inc. (8/17-18)
July 22 filed 155,269 outstanding shares of capital stock
(par 331/3 cents). Price—To be supplied by amendment.
Proceeds—To selling stockholder.
Office—4865 Stenton

29

filed

July 14 (letter of nbtification)

1,197,200 shares of com¬
(25 cents per share). Proceeds
exploring and developing of oil and
Office—Patterson Bldg., Denver, Colo.

expenses

gas

Kaufmann &

112

properties.
Underwriter—None.

pur¬

material; inventory; research and development
general corporate purposes. Office—70-31 84th
Street, Glendale 27, L. I., N. Y. Underwriter—None.
31

filed

ferred stock.

for

•

St.

The

of

Regis Paper Co.
filed 30,000 shares of

for

Casualty Co.

Proceeds—For

per

working

capital.

company

and

Price—$6

share.
Office—40

the

of

surplus.
Underwriter—None.
•

Provident

Security

Proceeds—To

per

E.

Thomas

Insurance

increase

Road,

of class

unit.
ment

known

Georges

1061

a

apartment

Queenstown

as

County,

Apartments
Underwriter—None.

Md.

Ariz.

•

Prince

Statement

June

1

100,000 shares of common stock
Each purchaser of stock is entitled
to receive

(par $1).

per

2000

W.

Colo.

Offering—Expected

Proceeds—For working capital. Office—
Ave., Denver, Colo.
Underwriters
Amos C. Sudler &
Co., and Purvis & Co., both of
Colfax

writer—John

Raub

in

share.
Proceeds—For general corporate
purposes.
Office—1029 Vermont
Avenue, N. W., Washington, D. C.

Underwriter—Weil & Co.,
Washington, D. C.
Realsite, Inc.
July 28 filed 200,000 shares of class A stock.
off

pay

Shares in
Dec. 12 filed

Priced— $3
mortgages and for

working capital.
Office—Jamaica;
writer—Robert L. Ferman &

L. I., N. Y.
Co., Miami, Fla.

exploration

to

its

rata

pro

shares

of

the

10

June
on

behalf

account

proposes

by

lege).

stock

(with

of

one

new

share

an

oversubscription privi¬
will be for 30
days fol¬
subscription rights. Price—To be

will be added

and

the

balance if any

stock

each share

exchange offer




is

of

common

stock

(par

&

Co., New York.

•

Tarrytown, Inc.

(par $1).

Price—$1.25

per

share.

Proceeds—For

Underwriter—Harrison

S.

the

account

of

the

company,

and

457,000 shares, repre¬

senting outstanding stock, to be sold for
the
of certain
selling stockholders. Price—To be

of

amendment.

being made by Ritter in

stock
l.i:

•

" i

Proceeds—To

outstanding at the date
'

t

'

of

70%
the

'

.

•«

of

stock
"

'

t

accounts

supplied by

retire

the

common

offering; • Ito
1
.1
•

•

...

.Ui:'A

1

Jur

if Southwestern Investment Co.
July 27 (letter of notification) 15,000 shares of
common
stock (par $2.50) to be offered to
employees of the com¬
pany and subsidiaries through employees stock
purchase
plan.
Price—95%, of the market price or 95% book
value whichever is the higher at the date of
sale. Proceeds—For working capital.
Office—205 E. 10th, Amarillo, Texas. Underwriter—None.

cen

cha
equ

for

N. '

lam
to 1

?1
Ma;

•
Speedry Chemical Products Co., Inc.
(9/7-11)'
July 31 filed 218,333 shares of class A stock (par 50
cents), of which 51,667 shares are to be offered for

cen

full

Co,

account of company and

168,666 shares for selling stock¬
holders. Price
To be supplied by amendment.
Proceeds—For working capital, etc.
Office—Richmond Hill,
L. I., N. Y. Underwriter—S. D. Fuller &
Co., New York.

pro
for

nue

Wo:

Sports Arenas

(Delaware) Inc.
$2,000,000 of 6% 10-year convertible debentures (subordinated), due Jan. 1, 1969. Price—To
be
supplied by amendment. Proceeds—$750,000 to pay AMF

Jul;

Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other
installations; fixtures and equipment; $85,000

La£

Nov.

18

•

filed

(pa

Co,

expand two present establishments by increasing the
number of alley beds by eight at Yorktown
Heights and
by six at Wilton Manor Lanes, Fort Lauderdale; $300,000
for deposits on
leaseholds, telephones and utilities; and

1

Apr
Pri<
—5!

$395,000 for working capital. Underwriter—None.

-E

Stelling Development Corp.
(letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For mortgages, land, paving
roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.
June 8

June 29 filed 368,571 shares of common
stock, to be
fered for subscription by common stockholders at the
rate of one new share for each five shares held on or

of-1

about

July 20, 1959; rights to expire on or about Aug. 12,
Price—To be supplied by amendment. Proceeds—
bank loans; for payment of a note; for

1959.

S.

D.

Lunt

&

Co.,

Buffalo,

N.

Y.;

Allen

and

&

Co:,

New York.
Stuart Hall

June

Co., Kansas City, Mo.
(letter of notification) 23,169 shares of common
(par $1). Price—To be supplied by amendment.

8

stock

Proceeds—For general corporate
purposes.
—White &

Underwriter

Co., St. Louis, Mo.

Studebaker-Fackard Corp.
July 1 filed 165,000 shares of $5 convertible preferred
(par $100) and 5,500,000 shares of common stock
(par $1). The 5,500,000 shares are reserved for issuance

stock

conversion of the preferred stock on and after
1, 1961, at the conversion price of $3 per share,
(taking the preferred at $100 per share). The preferred
stock was
originally issued by the company in October
1958, to 20 banks and three insurance companies pur¬
suant

to

a

corporate reorganization.

of preferred stock

are

now

held by

The largest blocks
two insurance com¬

panies—the Metropolitan Life Insurance Co. and the
Prudential Insurance Co. of America.
The filing was
in order to provide a
prospectus for use by the
preferred shareholders who may wish to offer or sell

shares

of

Stearns

the

&

initially

preferred

Co.,

offer

one

for

stock owned by

of

and/or

the

public

it, at

a

common

preferred

sale

Bear,

stock.

stockholders, will

shares

preferred
price to be supplied by amend¬
550

of

ment.

Sunray Mid-Continent Oil
May 19 filed 525,000 shares of

Co.
common

stock

to be of¬

fered in exchange for common stock of Suntide Refining
Co. in the ratio of one share of
Sunray for each three
shares of Suntide.
The offer is conditional upon the de¬

posit by Aug. 7,

1959 of sufficient shares

that

of

Suntide so

Sunray will own at least 90% of the
Suntide shares. Offering may be extended for additions.

30

outstanding

days.

Underwriter—None.

Supercrete Ltd. (8/10-14)
July 2 filed 300,000 shares of common stock, of whicn
100,000 shares will be offered for the account of cert am
selling stockholders, and the remaining 200,000
.

will

be

^shares

sold

for the company's account
(par 25 cern
Price — To be supplied by amendment
Proceeds—For reduction of bank loans and for workup

Canadian).

capital.

Office—St.

derwriter—Straus,

Boniface,
Blosser

&

Manitoba, Canada,
McDowell, Chicago

New York.

bur/An

fr:

U

.•sb'itd

^V'.

riv'fi'.o

r

r-

1

Pro

to

made

City, Utah.
• Sottile, Inc. (Formerly South Dade
Farms, Inc.)
(9/7-11)
July 29 filed 2,000,000 shares of common
stock (par $1),
of which
1,543,000 shares are to be issued and sold for

(P. J.) Co.,
Bridgeton, N. J.
June 18 filed 4,827
shares of preferred
stock, non-cumu¬
lative, voting, (par $100) and
60,018 shares of common
stock (no
par) to be offered to the holders of
preferred
and common
stock of Brooks
Foods, Inc., at the fate
of one share of
Ritter preferred stock for
each share of
p eferred stock of
Brooks and two shares of
common

n,pltter *or
The

stock

offered for

company,

general corporate purposes.
Brothers & Co., Salt Lake

Ritter

of

be

Portfolios, Inc., 115 Chambers Street, New York
City.
Skaggs Leasing Corp.
June 4 (letter of
notification) 240,000 shares of common

working capital. Underwriter—Pacific
Securities Ltd.,
Vancouver, Canada.

Brooks.

to

Plan

Proceeds—To pay off demand

indebtedness,

to

common

Tarrytown, N. Y., and
alterations and construction thereon.
Office—115 Cham¬
bers Street, New York
City. Underwriter—Sire

for

The subscription
period

lowing issuance of
eupplied by amendment.
note, to pay cither

the

(8/20)
are

—For

subscription

rate

pen

Co., Dallas.

Jan.

$50 debenture and one share of
preferred stock.
The minimum sale is
expected to be five units. Proceeds
general corporate purposes
incidental to the ac¬
quisition of land and
buildings in

are to be sold
the
company and 824,000 shares for the
certain selling stockholders.
The company
to offer the
1,174,716 shares for

of

the

—

July 13 filed $900,000 10-year 6%
debentures and 18,000
shares of $3
cumulative, non-callable, participating pre¬
ferred stock (par
$10). Price—$100 per unit
consisting
of one

of

its shareholders at
each three shares
held

of

Sire Plan of

Co.,

September.

26,
(par $1). Of this
stock, 1,174,716 shares

account

derwriter—Maltz, Greenwald

Richwell

Petroleum Ltd.,
Alberta, Canada
1958 filed 1,998,716 shares of
common

Name

and 1,400,000 shares for
account of selling stockholders.
Price—To be supplied
by amendment. Proceeds—For
working capital. OfficeCentral Ave. and Mechanic
St., Silver Creek, N. Y. Un¬

dollar

G. Cravin &

in

cents), of which 200,000 shares

the

—

Offering—Expected

stoc

general
Office-,

upon

Silver Creek Precision
Corp.
March 30 filed
1,600,000 shares of

expenses

Inc., New York.

Former

•

under its agreement with
three
other companies for
joint exploration of concessions held
in the
Philippines. Office
410 Rosario St..
Binondo,

Manila, Philippines. Underwriter—John

Corp.

Shares in America, Inc.

geophysical contractors for technical

pay

Industry, Inc.

50,000 shares of common stock. Price—At
Proceeds—For investment.
Office—1033-30th
Street, N. W, Washington 7, D. C. Investment Advisor—
Investment Fund Management

Republic Resources &
Development Corp.
1,250,000 unit shares of capital stock. Price
—$2 per share. Proceeds—To be used in
the company's
oil exploration program for the
purchase of oil exploration and
drilling equipment, supplies and
materials; to

services; and

American

market.

Under¬

June 29 filed

contract with U. S.

corporate purposes, including working capital.
Dallas, Texas. Underwriter—First Southwest

yoi

f

f

working capital; for expenditures
by
Strategic-Udy
Metallurgical & Chemical Processes Ltd., which owns
|
and operates a pilot plant at
Niagara Falls, Ontario, and
is a subsidiary of Stratmat
Ltd., Strategic's principal'
subsidiary, and by its other direct subsidiary, StrategicUdy Processes, Inc., which owns and operates a labora¬
tory at Niagara Falls, N. Y.; as working capital for a
mining subsidiary; for payment of a mortgage; and as
working capital for another subsidiary. Underwriters—

Sea

Price—$8.50

Proceeds—To

Un<

For payment of

View Industries, Inc.
(8/26)
July 14 filed $420,000 of 7% convertible
subordinated
debentures and 84,000 shares of common stock
(par 10
cents). Price—$340 per unit of two debentures at
$100
par and 40 shares of common stock at
$3.50 per share.
Proceeds—To retire loans; for
machinery and equipment;
and to add to
working capital. Office—3975 N. W. 25th
Street, Miami, Fla. Underwriter—Michael G. Kletz &
Co., Inc., New York City.

September.

Electronics

share.

Price—To

—

Research Corp. (8/12)
July 15 filed 165,000 shares of common stock of
which
150,000 shares will be offered to the public.

per

gra:

Strategic Materials Corp.

Inc.

stock.

—

(par 250).

general corpo¬
Office—1202 Myrtle St.,
Erie, Pa. Under¬
G. Cravin &
Co., New York.
Offering—

per

has

(letter of notification) 8,250 shares of common
(par $1) to be offered to certain
employees of the
company and its subsidiaries under the
restricted stock
option plan granted on Aug. 2, 1956.
Price
At-themarket on date options were
granted.
Proceeds
For
working capital. Office—2001 N. Westwood
Avenue, To¬
ledo 7, Ohio.
Underwriter—None.

—

Expected

Fund,

common

Jul:

find

stock

—

rate purposes.

Securities

Xsrs

July 27

—

Denver,

August.

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock
Price
$1.50 per share. Proceeds
For

Convertible

be supplied
by amendment. Proceeds—For investment.
Office—23 Hazelton
Circle, Briarcliff Manor, N. Y. Gen¬
eral Distributor—Samson
Associates, Inc.
ic Scholz Homes, Inc.

share.

in

Underwriter-^-None. Statement

July 15 filed 200,000 shares of

stock

one

share of

a

Regis Paper Co.

Sanison

purchase warrant for each five shares of stock
acquired.
The warrants will entitle the
holder to acquire one share
of common for each five
shares of stock acquired. Price

—$2

St.

been amended.

Investment Co.

filed

Star

—

effective July 28,

Radinsky

Lone

June 24 filed
20,000 shares of common stock (par $5) to
be offered
by the company to the holders of the common
stock of Chemical
Packaging Corp. on the basis of one
share of St. Regis common for each
five and one-half
shares of common stock of Chemical. Office
150 East
42nd St., New York.

develop¬

in

(par $5).
exchange

in

will enable it to control the business
operations
policies of Lone Star. Statement to be amended.

and

acquire

this stock

common

Gardens, Inc.
units, each unit consisting of 700 shares
non-voting common stock. Price—$5,000 per

B

stock

common

offer

to

At

eha;

—

deposited for exchange, and may,elect to do so if a lesser
percent, but not less* fhah'"'80%, of all the Lone Star

Co.

140

Proceeds—To

proposes

pre¬

Proceeds

St. Regis common for each share of
Lone Star
coirynon.
St. Regis will declare the
exchange' ofter effective if
95% of the outstanding shares of Lone Star common are

Queenstown

June 5 filed

company

outstanding shares of common stock of
Bag and Bagging Co. on the basis of 0.6782 of

capital and

Phoenix,

6%

($100 per share).
Underwriter—None.

June 26

Provident Security Life Insurance Co.
June 30 (letter of
notification) 50,000 shares of common
stock (par $1) to be offered to the
policyholders of this

i

Underwriter—Jay W.

Price—At par

—For general funds.

issued by Dependable Life Insurance Co. and
to certain
egents and brokers of Producers Fire &

share.
Underwriter—None.

'

York.

if St. Croix Corp., Park Falls, Wis.
July 27 (letter of notification) 750 shares

Fire &

Price—$5

,

Street, New

Co., New York.

writer—None.

Casualty Co., Mesa, Ariz.
400,000 shares of common stock to be
subscription by holders of stock purchase
rights acquired in connection with life insurance policies
March

offered

42nd

filial

South East First

Office—

—

for

Producers

W.

<
-

Office
Street, Miami,
Fla./Underwriter
—Bear, Stearns & Coi/New York,
v
*
—250

Southwestern Drug Corp.
July 22, 1959 filed 87,818 shares of common stock.
Price
—To be supplied by amendment.
Proceeds—For

common

if Saginaw Financing Corp.
July 24 (letter of notification) $250,000 of 5-year 5V2%
and 10-year 6% capital
notes, to be issued in multiples
of $100 each. Price
At par.
Proceeds — For working
capital. Office—606 Eddy Bldg., Saginaw, Mich. Under¬

* Precision Apparatus
Co., Inc.
' r,; \
July 30 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—For

chase of

of

and the addition of working capital.

stock. Price—At par
—For expenses of

and

shares

stock (par 10
cents). Price—$5 per share. Proceeds—For general cor¬
porate purposes, including advertising and promotion

Petroleum, Inc.

mon

i

70,000

4

—

^ Rozee Bonus Club, Inc.
July

the

Southern Realty & Utilities Corp.
July 21 filed 300,000 shares Of common stock (par
$1)
Price—To be supplied by amendment.
Proceeds—To pay
loans and notes and for working capital. Office
New
York City. Underwriters—Hirsch &
Co., and Lee Higgin,
son Corp., both of New York.

Ave., Philadelphia, Pa. Underwriters—Kidder, Peabody
& Co., New
York, and Schmidt, Roberts & Parke, Phila¬
delphia, Pa.

if Porce-Alume, Inc. (8/24-28)
July 30 filed 300,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For expansion.
Office—Alliance, Ohio. Underwriter—Pearson, Murphy
& Co., Inc., New York.
Prairie

Borer

Thursday, August
6,1959

..

bank

seven

shares

Co.,

.

in

.

capital stocks of six of the
company's
subsidiaries; to repay-a bank loan of
$6,400,
000; to add to working capital; to retire-certain
long'
term indebtedness; and to
develop citrus groves.

of

Detroit, v Mich. Underwriters
White, Weld &
New York, and
Watling, Lerchen & Co., Detroit.

Chronicle

un¬
an

|

95

(557)

Number 5870

190

Volume

. . .

s'/

eci

ret

H

fice—49 W. 32nd Street, New York
—The First Republic Underwriters

writer—H. P. Pratt &

stock. Price—
ffnar (19,800 Israeli pounds—equivalent to $11 per
^nre in U. 3. funds), payable up to 90% in State cf
Ertipl Independence Issue and Development Issue Bonds,

ay

Y.

ew

York, N.

in*
x

•

e-.

incidental to mining.

Tape

Broadway, New York. Underwriters—Blyth & Co.,
Inc., and Cyrus J. Lawrence & Sons, both of New York.

Underwriter—None.

Cable Electronics Co., Inc.
filed 110,000 shares of common

stock (par one
rent)
Price—$3.75 per share. Proceeds—For the purphase
and : construction of necessary machinery and
eauioment, the promotion and sale of Tape Cable, and
Tor working capital. Office—790 Linden Ave., Rochester,
N Y
Underwriters—Charles Plohn & Co. and Nether¬
lands' Securities Co., Inc., both of New York. Statement
Tune

las,

ion
>m*

iase

ook

8

★ United Air Lines, Inc.
July 31 filed 2,048 shares of common stock, to be offered
to key management personnel at $35.24 per share until
Dec. 31, 1959 under the terms of the company's restricted
stock option plan.
Office—5959 South Cicero Avenue,

U to be withdrawn. ;"
na¬
|
Technology, Inc.
Mav 15 filed 325,000 shares of common stock (par 10
il)' $ cents).
Price—$4 per share. Proceeds—To pay off in
50
full the subscription of Microwave Electronic Tube
for
Co
Inc. stock, represented by notes, to pay for im¬
»ckprovements upon the plant leased to Microwave, and
ro.
for working capital.
Office—1500 Massachusetts Ave¬
till,
nue
N. W., Washington, D. C.
Underwriter — E. L.
ork,
Wolf Associates, Inc., Washington, District of Columbia.
• Television Shares Management Corp.
(8/10-11)
deJulv 1 filed 206,500 outstanding shares of common stock
be
(par one cent). Price — To be supplied by amendment.
MF
Proceeds—To selling stockholders. Office—135 South
pay
LaSalle St., Chicago, 111. Underwriter — White, Weld &
ooo
Co., Chicago and New York.
the
Ten Keys, Inc., Providence, R. I.
and
April 28 filed 973,000 shares of capital stock (par $1).
000
Price
$5.40 per share. Proceeds—For investment. Office
and
—512 Hospital Trust Bldg., Providence, R. I. Distributor
—E. R. Davenport & Co., Providence, R. I.
raon

Pin Bowl

Ten

July 7

Terminal
ofthe
or

12,
Is—»

for

Udy
wns

and

ipal
gicorair

a
as

rs—

Co.,

mon

ient.
iter

rred

(8/17)

Tower Co.

$2,500,000 7% 10-year sinking fund deben¬
tures, due Aug. 1, 1969, with warrants, each warrant en¬
titling the holder to buy 40 shares of common stock ($1
par) until Aug. 1, 1962 at $10 per share. Price—To be
offered at 100% of principal amount. Proceeds—To re¬

July 21 filed

pay

bank indebtedness.

Underwriter—Fulton Reid & Co.,

| Inc., Cleveland, O.
outstanding common stock,
to be offered by Textron Industries, Inc., the present
holder thereof, to its stockholders on the basis of one
share of Textron Electronics stock for each 10 shares
of Textron Industries stock held as of the record date.
Price—To be supplied by amendment.
Office—10 Dor-

Underwriter—None.

Street, Providence, R. I.

Tool

Research

&

Engineering

(8/17-21)
stock (par $1).

Corp.

July 14 filed 250,000 shares of common
Price—To be supplied by amendment.
working capital; to repay loans; and
equipment. Office — Compton, Calif.

Proceeds—For
for additional
Underwriter —

Shields & Co., New York.

eral

ince

new

iter
are,

rred
>ber
wr¬

ecks
om-

the
was

the

corporate purposes, including the acquisition of
store properties and expenses incidental to the
opening of stores. Office—210 East Main Street, Rock-

ville, Conn. Underwriter—D. Gleich Co., New York.
fering—Expected in the latter part of September,

Transcon Petroleum & Development Corp.,

red
ind-

ofling
iree

deso

ling

>nal

March 20

(letter of notification) 300,000 shares of com¬
Price—At par ($1 per snare).
Proceeds—
development of oil properties. Underwriter—First
Investment Planning Co., Washington, D. C.

mon

stock.

For

★ Travelers Club, Inc.
July 30 (letter of notification)
of

27,000 shares of class

stock.

common

Price

—

$10.25

share.

Proceeds—To operate a travel agency.
Queens Boulevard, Forest Hills, N. Y.
writer—None.
99-23

per

Office—
Under¬

:ain

★

stock, $50 per share. Proceeds—For working
Office—2432 N. Second Street, Minneapolis 11,

common

capital.

To

★ United Industries Co., Inc., Houston, Texas
preferred stock. Price

Proceeds—To

be used

to

At

—

for

pay

par

($8.50

Offering—Expected

construction of grain
working

*

Trln*ty Small

April

17

filed

Business Investment Co.

235.000
per

ing

Utfice—South

[Jn*

writer—To be

shares

share.

of capital

Proceeds

Main

/0

(par $1).
investment.
S. C.
Under¬

stock

For

Street, Greenville,
supplied by amendment, j

^Tungsten Mountain Mining Co.
21 (letter of
7

—

notification) $100,000 principal
first mortgage convertible bonds, to be




amount

offered

day.

Prospective Offerings

elevator and balance will be used for additional

capital. Underwriter—Dempsey-Tegeler & Co., St.

Louis,

Albertson's Inc.

Mo.

June 23 it was reported
some

(letter of notification) 10,000 shares of common
stock
(par 15 cents). Price—$5 per share. Proceeds—
For general operating funds. Office—700 Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas National Corp.,
San Antonio, Tex.

July 13

Uranium Corp.

mon

Graham

Underwriter

Offering —

American Gypsum

Co.

July 15 it was reported that the company will register
debt and equity securities later this year. Proceeds—For
construction of a gypsum products plant in Albuquer¬

April 30,1957 filed 1,250,000 shares of common stock (pai
16 cents).
Price—To be sunolied by amendment (ex¬
purposes.

form of com¬

Hogle & Co., Salt Lake City, Utah.

Expected sometime this fall.

of America, Portland, Ore.

pected to be $1 per share).

that the company contemplates

additional financing, probably in the
Business—Food stores concern.

stock.

—J. A.

New Mexico, and for working capital. Office—Al¬
Underwriters—Jack M. Bass & Co.,,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.

Proceeds—For exploration

que,

buquerque, N. M.

Underwriter—To be named by amendment
Albert Griswold of Portland, Ore., is Pre»-

(8/10)
General of
the United States, Office of Alien Property has invited
bids for the purchase of 515.6 shares of common stock
(par $100) and 210 shares of 6% preferred stock (par
$100). The common represents 14% and the preferred
51/2% of the outstanding shares. Business—Company is
★ Arabol Manufaturing Cor, New York

kient.
Vafi

Investment Co., Pboenix, Ariz.,
filed 80 investment contracts (partnership

Aug. 4 it was announced that the Attorney

Vista

29

terests) to be offered in units.
Proceeds—For

investment.

in¬
Price—$5,378.39 per unit.

Underwriter—O'Malley Se¬

curities Co.

Variable Annuity Life Insurance

Co. of America

filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than. $1,500 for single premium
contt cts.
Proceeds—For investment, etc. Office—1832
M Street, N. W., Washington, D. C. Underwriter—-None.

a

April 21

Victoria

.

Raceway

May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—
To construct and operate a racing plant; and for work¬

ing capital and other corporate purposes. Office—Notre
King Street, Winnipeg, Canada. Under¬
writer—Original underwriter has withdrawn.
Vulcan Materials Co., Inc.

June 29 filed 10,000
stock and

shares of 6Y4% cumulative

preferred

560,000 shares of common stock, to be offered
of Ralph E. Mills Co., Talbott Con¬

to the stockholders

for all the outstanding

Inc., in exchange

capital stock of these three cor¬

porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., for the business and assets of
that company.
became

Office—Mountain Brook, Ala. Statement

effective

on

July 20.

Drug Corp.

—

program,

and for working capital.

Street, Shreveport, La.

Office—411-13 Lake

Underwriter—None.

★ Waltham Engineering and Research Associates
July 28 filed $1,065,000 of participations in partnership
interests. Proceeds—To purchase land and buildings of
Waltham

Engineering

manufacturer

of

adhesives,

and Research

Center, Waltham,

glues,

pastes,

dextrines,

starches, sizings, and other glutinous products.
In Oc¬
1958 the Attorney General rejected all bids in

tober of

to a prior invitation, including the high
$83,350. Proceeds—To go to the United States
General.
Underwriter— To be determined

response

of

torney

chinery, equipment, and purchase of" permanent plant
facilities; for research and experimentation relative to
new products, for initial contacts and purchase of addi¬
tional
companies; for proposed national advertising

N. W.,

any

convert¬
share).

per

^ons.

Office—1500 Massachusetts Avenue,
Washington, D. C. Underwriter—None.

Petroleum Corp., the selling stockholder.
First City National Bank Bldg., Houston,
H. Walker & Co., New York.

Underwriter—G.

Texas.

Aug. 5 filed 100,000 shares of 60 cent cumulative
ible

Zapata

Office—2218

Underwriter—None.

Minn.

Zapata Off-Shore Co.

July 13 filed 229,585 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds—

April 28 filed 157,250 shares of class B common stock
(no par), to be offered primarily to retail druggists.
Price
$10 per share.
Proceeds — For additional ma¬

ent.

and

None.

deal¬

preferred stock-and 69 shares
Price—Of units, $4,550 each; and of

in units of 11 shares of

stock.

$10)

40,000 shares of preferred stock (par $25). Price —
At par.
Proceeds—For construction and equipment of
company's plant and for working capital.
Office—300
Montgomery St., San Francisco, Calif.
Underwriter—

stock, and 550 shares of 5% cumulative preferred stock
(par $100) to be offered, together with remaining 3,450

common

Fiber Co.

100,000 shares of common stock (par

and

Treasure Hunters, Inc.
1,900,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For salvage op-

ire3
nt3

March 5 filed

to stockholders who own less than 69 shares of common

stock to certain retail hardware

.

derwriter—None.
Western Wood

common

effective July 8.

Life Insurance Co.
June 29 filed 212,000 shares of common stock and op¬
tions to purchase 172,701 shares
(plus the underlying
shares). The company proposes to make a public offer¬
ing of three blocks of stock in amounts of 40,430, 38,570
and 36,935 shares, at prices of $1, $2 and $3, respectively.
The remaining 96,065 common shares and options for the
172,701 shares (together with shares underlying such
options) are to be offered by the present holders thereof.
The options permit purchase of the underlying shares
at $1 per share.
Proceeds—For general corporate pur¬
poses. Office—2801 East Colfax Ave., Denver, Colo. Un¬

★ United Hardware Distributing Co.
July 2,4 (letter of notification) 4,900 shares of common
stock (par $10), of which 1,450 shares are to be offered

of

J.

Western Empire

President.

Wade

June 4 filed

lich

Co.

struction Corp. and Talco Constructors,

A
$1); each share of class A stock is convertible

stock (par
into two shares

Englewood, N.

Dame Avenue at

Mangum, Okla.

ear,

will

Of¬

Trans-Central Petroleum Corp. (8/13)
July 6 (letter of notification) 1,000,000 shares of common
stock (par one cent). Price—10 cents per share. Proceeds
—For expenses to explore for gas and oil and develop¬
ment. Office—Two Park Ave., New York 16, N. Y. Un¬
derwriter—Barnett & Co., Inc., New York, N. Y.
/

sell

Insurance

operating properties, real and/or personal, includini
office furniture, fixtures, equipment and office space, bj
lease or purchase.
Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., ii

ers

Office—65 Honeck St.,
Underwriter—Firm originally indi¬

turers; and for working capital.
cated has withdrawn. Statement

Price—

April 16 filed 2,000,000 shares of common stock (par $5;
Price — $10 per share. Proceeds — For acquisition oi

June

★ Tower's Marts, line.
July 29 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—For gen¬

iock

Employees

.

Wellington Electronics, Inc.
May 6 filed 240,000 shares of common stock (par '75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬

Ayres, Inc., Richmond, Va. Offering—Expected some¬
United

.

•

Universal Finance Corp.

★ Textron Electronics Co.
Aug. 3 filed 500,000 shares of

rance

Calif.

time during August.

purchase land, building and equipment. Office—South
Oakland St., Arlington, Va. Underwriter—None. Offer¬
ing—Temporarily suspended by SEC.

der-

pleton

$3.50 per share. Proceeds—For general corporate pur¬
poses and to reduce indebtedness.
Office — 222 —34th
Street, Newport News, Va. Underwriter—Willis, Kenny
&

Street,

Calif. Underwriters—Mitchum, Jones
Temand Schwabacher & Co., both of Los Angeles,
; 5
/ ' /
,
;

Pomona,

Office—729 Seventh Avenue, New
Eberstadt & Co., New York,

July 23 filed 500,000 shares of common stock.

shares of

ver-

—

selling stockholders. Office—1201 East Lexington

United Discount Corp.

(letter of notification) 29,000 shares of common
Price —At par ($10 per share). Proceeds —To

stock.

• Wayne Manufacturing Co.
(8/25-28)
July 27 filed 90,000 outstanding shares of capital stock.
Price
To be supplied by amendment.
Proceeds — To

Underwriter—F.

York.

Inc.

ds—

writer—None.

★ United Artists Corp. (8/24-28)
July 31 filed 100,000 shares of outstanding common stock.
Price—To
be
supplied by amendment.
Proceeds—To
selling stockholders.

Proceeds — For working capitaL
Street, N. W. Washington, D. C. Under¬

$5 per share.

—

Office—1507 M

Chicago, 111.

'ro.

•

Price

233

Mining Corp.
of notification) 275,600 shares of common
Price—At par ($1 per share). Proceed*—For ex¬

penses

ral

Statement effective June 24.

Washington Land Developers, Inc.
3 filed 100,000 shares of class A common stock.

Co., Seattle 4, Wash.

★ Union Bag-Camp Paper Corp.
(8/19)
July 24 filed 327,042 shares of outstanding capital stock.
Price—To be supplied by amendment. Proceeds—To the
Louis Calder Foundation, selling stockholders.
Office—

29 (letter

ctnek
ice

1, N. Y.

June

Swallow

Tnlv

Of¬
Underwriter
Corp., same address.

Mass., and for expenses connected to the purchase.

principal amount. Proceeds—For construction, instal¬
lation of machinery and equipment a$d working capital.
Offiae—511 Securities Building, Seattle 1, Wash. Under¬

of

.

-Hithe balance in cash. Proceeds—For expansion proi Sam Office - 79 Ben Yehuda St., Tel Aviv, Israel,
i rndp'rwriter—American Israel Basic Economy Co., New

1).

Price—100%

and $1,000 each.

in denominations of $500

Super-Sol Ltd.
I -winrrh 25 tiled 250,000 shares of common
*

g-

45

The Commercial and Financial Chronicle

bid
At¬
by

competitive bidding.
Bids — Expected to be received
only from American citizens up to 11 a.m. (EDT) or.
Aug. 10 at the Office of Alien Property, Room 664, lOt
Indiana Avenue, N. W., Washington, D'. C.

★ Atlantic City Electric Co.
Aug. 3 it was reported that the directors are contemplat¬
ing the issuance and sale of a small amount of common
stock, after a three-for-two stock split.
Last equity of¬
ferings were underwritten by Eastman Dillon, Union Se¬
curities & Co.; and Smith, Barney & Co., both of New
York.
Offering—Expected during the latter part of
this year.
Aurora

Plastics Corp.

July 30 it was reported that the company plans early
registration of 225,000 shares of common stock (part for
selling stockholders). Business — Manufactures plastic
airplane models. Underwriter — Burnham & Co.,f New
York.

Barton's Candy Corp.

reported that the company is planning
stock. Business — The 19-year-old
company operates 67 retail candy stores in the Greater
New York area, and 45 other outlets in the area north
of Atlanta, Ga., and east of Chicago, 111.
Gross sales
volume in the fiscal year ended June 30 was reportedly
about $10,000,000. Proceeds — In part to selling stock¬
holders, and, in part, to the company, for the expansion
of production facilities, for the organization of additional
Continued on page 45
July 15
an

it

was

issue of common

46

(558)

The Commercial and Financial
Chronicle

.

.

Thursday, August

.

6

1959
V

Continued

jrom

page

outlets and for general corporate purposes.
—IX Hr Blair & Co., N.'Y. C.
Benson

June

10

Manufacturing Co.,

it

the

(jointly); Salomon Bros. & Hutzler; Equitable Se¬
Corp.; Eastman Dillon, Union Securities & Co.;
Lehman Brothers; Blair & Co.
Inc.; The First Boston
Corp. Offering—Expected in the latter part of this year.

company

Mo.
contem¬

if Duquesne Light Co.
Aug. 3 it

capital. Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers
and beer barrels, aluminum curtain wall sections for the
building industry and other proprietary products. Un¬

dinated

July 23 it was reported that at a meeting to be held
Sept. 2 stockholders will consider issuing not more than
$15,000,000 of first mortgage bonds. Proceeds—To retire
Underwriter—To be determined

year.

of

was

share for each 10 shares held

one new

The last rights

offering

was

as

Essex Universal

of the record

June

underwritten by The

$1).

250,000 shares of class A

common

stock

is¬

Offering-—Expected sometime
To

be

ital.

Office

this

Fall.

and

—

(8/12)

road plans the sale of
trust certificates on either

about $2,500,000 of equipment
Aug. 12 or Aug. 19. Probable bidders:
Halsey, Stuart &
Co., Inc., and Salomon Bros. & Hutzler.

Texas

Pacific

(8/24)
July 27 it

on

reported that the company plans to re¬
Aug. 24 for the purchase from it of
$4,equipment trust certificates. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutz¬
ler, both of New York.

<j

be received

—

Consolidated Natural Gas Co.
19, James Comerford,
President, announced
company plans later in year.to issue and
sell

May

was

reported

stock for each

that

for

Aug. 21.

Bids—Expected

shares held.

Aug. 3 it

!?V.

'




Brothers.

(2)

For

debentures:

ditional

~

.

offer

conditions

and

com¬

Merrill

Lynch,

........

.

.

.

...

v

.

company plans some ad¬
York publishing firm.

financing. Business—New

★ Ryder System !nc.
Aug. 3 it was reported that the
company plans issuance
this Fall of an additional
75,000 shares of present com¬
mon
stock (par $5), or
150,000'shares of new common
stock (par $2.50).' The ICC
has approved the proposed
split.

Co., Inc., New York.
Salant

&

July 15 it
company,

Salant

Underwriter—May be Blyth &

;

'

-r

*

.

:

•

' '

Inc.

7

"

was

ister .100,000

\

reported that this company plans to reg¬
shares of common stock in

August

which

has

before

never

done

any

The
public

Proceeds-*-

For general corporate
purposes. Office—330 5th Avenue,
New York.

Underwriter—Kidder, Peabody

York.

•'

'

'

'

& Co., New

"
.

June
to

company, subject to
required stockholder

Carolina

22,

sell

1959.
rent

approximately $25,000,000

-

S.

C.

Electric

&

Gas

Co.

\

'

-

McMeekin, President, announced plans

approximately $8,000,000 of bonds
Proceeds—To

construction

placed privately.

—..

in

December,

bank loans incurred for cur¬

repay

program.

Previous

issues

have

been

.

if Illinois Central RR.
Bids

will

(EDT)
-

000

of

(8/11)

be

received by the
company up to 1 p.m.
Aug. 11 for the purchase from it
of $2,820,equipment trust certificates

from

1960

to

1975.

lnaturing semi-an¬

Probable

bidders:

Inc.; Salomon Bros. & Hutzler.

Halsey,

construction program.
mined by competitive

Underwriter—To be deter¬
bidding. Probable bidders: Halsey

Stuart & Co. Inc.; The
First Boston
Corp. and Blyth &
Co., Inc. (jointly);
Equitable Securities
Corp.; White.
Weld & Co. and
Shields & Co.
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and
Eastman, Dillon. Union
Securities & Co.
(jointly); Lehman Brothers and Bear
Stearns & Co.
(jointly).
Bids—Expected later in the
year.

was

Fall.

on

Stuart & Co.

For

Transdyne Corp.
It

reported July 29 that this corporation will issue
stock, amounting to less than $300,000, in the
Business—The company manufactures electronics

common

Kansas City
power & Light Co.
Dec. 29 it was
reported that the
company plans to issue
and sell
$20,000,000 of first mortgage bonds.
Proceeds—

(jointly); - Lehman

...

equipment, including simulators/ trainers, and radar de¬
Proceeds—For working capital. Office—Maspeth,
L. I., N. Y. Underwriter—Simmons
& Co., New York.
vices.

.

Union

Electric Co.

(Mo.)

July 17 directors authorized issuance
of common stock

the

basis

held.

of

one

Proceeds

—

I-

sell

financing, manufactures shirts in Tennessee.

if Dallas Power & Light Co.
Aug. 3 it' was reported that the

Hutzler; Kidder, Peabody & Co. and
Merrill Lynch,
Pierce, Fenner & Smith Inc.
(jointly); Eastman Dillon,
Union Securities &
Co.; Blair & Co., Inc. and Baxter &
Co.

;

Underwriter—Allen & Co., New York.

common

nually

&

.'

if Random House Inc.'.'."
Aug. 3 it was reported that the

to

istered in the Fall.
Underwriter—Merrill Lynch,
Pierce,
Fenner & Smith
Inc., New York.

Bros.

■

President, announced

issue and

.(jointly),

principal
amount of convertible
subordinated debentures due 1984
stockholders on the basis of $100 of
debentures for
each 30 shares of
common stock
held;
-

—

company contemplates
the issuance and sale
of about
$20,000,000 of senior se¬
curities, but type or types has not as
yet been deter¬
mined.
Underwriter—To be determined
by competitive
bidding. Probable bidders:
(1) For bonds: Halsey, Stu¬
art & Co.
Inc.; The First Boston
Corp.; Salomon

(8/26)

(joihtly);

So.

market

i

y

Erie RR.

to

sold

reg¬

14.•";

placed""

will

con¬

be

Pierce, Fenner & Smith, Inc.; Stone & Webster Securities
Corp.; The First Boston Corp. and
Smith, Barney & Co.

it: Hooker Chemical
Corp. (9/15)
Aug. 4 it was announced that the
consent,

planning to

first mortgage bonds later
Underwriter—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc. and Lehman Brothers

was

favorable

Underwriter—To

Pittsburgh & Lake

pany plans to
in the year.

reported company received
approval from
the Territorial Public
Utilities Commission to issue
about
$4,500,000 of new bonds. Last bond
issues were

that

v

.

company is

,

Underwriter—None.'

privately.

>

for author¬

company's

program.

two-for-one stock

of

seven

Railway Commission

Puget Sound Power & Light Co..
May 15, Frank McLaughlin,

(9/17)

^Hawaiian Telephone Co.

this company
plans an
offering of about 250,000 shares of class A
common
stock,
of. which 200,000 shares
will be sold for the account
of
certain selling
stockholders, and 50,000

shares will be
for the
company's account.
Proceeds
Working
capital. Underwriter —Clayton
Securities Corp.,
Boston,
Mass.
Offering—Expected in the middle part of
Sept.
Cyprus Mines Corp.
July 15 it was reported that
approximately 1,000,000
shares of a
secondary issue common stock will be

October.

Sept. 17.

1

company has applied

State

was announced that the
company plans to re¬
ceive bids up to noon
(EDT) on Aug. 26 for the purchase
from
it of
$3,150,000 of equipment trust certificates.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler.
V

company has received approval
from the Territorial
Public Utilities Commission
to issue
209,000 shares of common
stock, to be offered first to
stockholders on the basis of one
new share

bonds, if market conditions are favorable.
Proceeds—For investments,
improvements, etc. Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley
& Co. and The First
Boston Corp.
(jointly); White, Weld
& Co. and
Paine, Webber, Jackson & Curtis
(jointly).
Construction Products
Corp., Miami, Fla.
June 26
it

on

Nebraska

Aug. 1 it

★ Hawaiian Telephone Co.
Aug. 3 it was reported

$20,000,000

of debenture

•

announced

Registration—Planned

$50,000,000 first and refunding mortProceeds
For construction
expenditures.
Underwriter—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston
Corp. Bids—Expected
to be received on Dec. 1.
'

company plans the is-

of

ity to issue up to 200,000 shares of
preferred stock
(par
$100). Proceeds—For capital
expenditures. Underwriter
—Blyth & Co., Inc., New York.

Oct.

that the company
plans to issue
$18,000,000 of 30-year first
mortgage bonds. Pro¬
ceeds—For construction
program.
Underwriter—To be
ietermined by competitive
bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc..
Kidder. Pea-

and sale of

gage bonds.

part

determined by
competitive bidding: Probable bidders:
Halsey, Stuart &
Co. Inc.; Equitable
Securities Corp.;
Kidder, Peabody &
Co., Eastman Dillon, Union Securities
& Co., Merrill
Lynch, Pierce, Fenner & Smith Inc., and
White, Weld &
Co. (jointly); The First
Boston Corp. and Harriman
Rip¬
ley & Co. (jointly).
Bids—Expected to be received on

Louis, Mo.

oody & Co. and Shields & Co.
(jointly); Lehman Broth¬
ers;
The First Boston
Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and
Eastman Dillon, Union
Securities & Co.
(jointly); Harriman Ripley & Co. Inc.

a

struction

and £ell

Underwriter—To be determined
by compe¬
titive bidding. Probable bidders:
Kidder, Peabody & Co.
and White, Weld & Co.
(jointly); Eastman Dillon, Union
Securities & Co.; Stone &
Webster Securities Corp. Bids
—Expected to be received on Sept. 9.
Consolidated Edison Co. of New York
Inc. (12/1)
July 30 it was reported that the
company plans the is¬
suance

11

was

i

Exchange Commission and the
Pennsylvania P. U. Commission
$50,000,000 of 30-year
bonds. Proceeds—To
help finance the

Flooring Corp.

Georgia Power Co.

Equitable Life Assurance
Co.
that the
company plans an

file with the Securities &

panel

Dec. 10 it

1

;•

announced

^

general corporate purposes.
Underwriter—May
Co., New York. Registration—Planned for

in

American
was

* Philadelphia Electric Co.
(10/14)
Aug. 5 it was reported that the

flooring. Underwriters—H. M.
Byllesby &
Co., Inc., Chicago,, 111.;
Mason-Hagan, Inc., Richmond,
Va.; Howard, Weil, Labouisse, Friedrichs &
Co., New
Orleans, La.

(9/9)

(par $100).

...

.

of stretch

wool

'

July 7 it was reported that the
company contemplates
the issuance and sale of
30,000 shares of preferred stock

i

to the

July 30 it was reported that the
company plans early
registration of $1,500,000 of 15-year
bonds and common
stock, to be offered in units. This will be the
company's
first public
financing. Business—Manufacturer

Ry.

of

Community Public Service Co.

stockholders

Dunne &

General

was

ceive bids

440,000

Co.,

Offering—Expected sometime

-

$20,000,000 of debentures.
Proceeds—To
the company's
construction program.
Underwriter—Blyth & Co., Inc., New York.
if Northern Natural Gas Co.
(10/1)
July 31 it was announced that this

ceeds—To be added to the
general funds of the company
and be used for its finance
and personal loan
opera¬
tions. Underwriter—G. H.
Walker & Co., St.

Turner, Inc., Dallas, Texas.

&

for

(

Chicago

of about

suance

finance

if General Contract Finance Corp.
July 31 it was announced that the
company's stockhold¬
ers
will be asked on
Sept. 15 to approve an issue of
250,000 shares of convertible preferred stock
(par $20).
Of these shares,
150,000 will be offered initially. Pro¬

(par $1).
Proceeds—For expansion and
working cap¬
Pine Bluff, Ark.
Underwriter
Eppler,

Cincinnati, New Orleans

the company in the next
the issuance and sale of about
$2,of debentures. Underwriter—D. H. Blair &

the week of Aug. 13.

Aug. 14, 75,000 shares
Price—To be supplied by

Chesapeake & Ohio Railway
July 15 it was reported that the

Corp.

initial
be

1

—

Gateway Airlines, Inc.
July 30 it was reported that the
company will make an
common stock
offering. Proceeds—To buy planes

Under¬

nf

be

of
fering of 950,000 shares of capital stock.
Price
$10 per
share.
Proceeds—To increase capital and
surplus. Un¬
derwriter—John M. Tait &
Associates,
Cincinnati, Ohio.
^ Northern Natural Gas Co.
(10/1)
July 31 it was reported that the

Price—$30 per share.
Proceeds—To increase capital and
surplus,. Underwriter

—

Guerin &

North

Dec. 1 it

—None.

The company intends to file about
of common stock
amendment.

J

on July 14, the
offering of 108,904 shares of
capital stock to stockholders of record
Aug. 7, 1959;
rights to expire on Aug. 28, 1959.;

by competitive bidding.
Probable bidders: Blyth &
Co., Inc. and Harriman Rip¬
ley & Co., Inc. (jointly); Lehman Brothers and Lazard
Freres & Co.
(jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith Inc.
jointly.
if Central Transformer Corp.

sale

company plans some
financ¬
ing. Business-Distributor of
electronic parts.
Offering^
Expected in August or September.

approved

determined

(9/21)

and

Underwriter—To

by

Newark Electric Co. of
June 2 it was
reported that

reported that

the

issuance

:

new

Central & Southwest
Corp.
May 19 it was announced that the company in view of
generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
—

was

June

Price—$10 per share.
will be changed to
Buckingham Freight Lines.

stock.

it

Federation Bank & Trust Co.
30 the Directors
approved and

(par

& Co., Chicago,
New Name—The
company's

writers

:

New York.

name

.

15

000,000

Underwriter—Cruttenden, Podesta

111.

-.

expend!

■.

,

few months expects

Corp., New York.

Buckingham Transportation, Inc. (8/10)
July 17 the company sought ICC approval for the
of

Paso Natural Gas Co.

■

competitive bidding. Probable
bidders
Halsey, Stuart & Co. Inc.; The First
Boston Corp.Mor¬
gan Stanley & Co.
Bid9—Expected to be received nn
Sept. 21.
•:
\

—

•

suance

determined

■

El

■

$45,000,000 of 35-year debentures.

Stockholders voted April 28 to increase the authorized
preferred stock to 1,000,000 shares from
472,229 shares,
and the common stock to
25,300,000 shares from 20,300,000 shares. Proceeds
For major expansion
program.
Underwriter—White, Weld & Co., New York.

reported that at a meeting to be held Sept.
2 stockholders will consider
issuing 271,553 shares of
common stock, to be offered to
stockholders on the basis

date.

be

Corp. and Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly).
Offering—Expected later this

Edison Co.

First Boston

To

& Co.: The First Boston

by competitive bidding. Probable bidders: Halsey, Stuart
& Co., Inc.; The First Boston
Corp.; Harriman Ripley &
Co. Inc.; Lehman Brothers; and
White, Weld & Co.

July 23 it

—

~

•.

if New England Telephone &
Telegraph Co.
July 21 directors approved* the

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.;' Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co,
(jointly) ; White, Weld

Boston Edison Co.

Boston

Underwriter

C

nr?

-

debentures.

that the

a

common
stockholders.
It is
expected that
rights to purchase these share will be
available during
the latter part of
August. Proceeds—For
capital
tures.

determined

derwriter—S. D. Fuller & Co., New York,

short-term bank loans.

v

was

convertible

announced

company has decide
substantial portion of the
capital required h
an
issue of common stock to
be offered
to both
ferred and
to raise

reported that the company is contemplat¬
the issuance of an undetermined amount of subor¬

ing

Telegraph & Telephone
Co., Ltd.
was

June 4 it

curities

plates an offering of $4,500,000 of common stock.
Pro¬
ceeds—For expansion program and additional
working

-

Maritime

Inc.

Underwriter

Kansas City,

that

announced

was

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc. and Merrill
Lynch, Pierce, Fenner & Smith

45

to holders

of

of record

1,036,602 shares

Sept. 10,

share for each 100
For expansion
program.

new

1959, on

shares

then

Underwriter

—May be determined by competitive bidding. Probable
bidders:- Lehman
Brothers;- White, Weld & Co., and
Shields*& Co. (jointly); Merrill
Lynch, Pierce, Fenner
&
Smith, Inc. Offering—Expected toward the end of the
.third quarter of 1959.,
'
"
' *
..." <"
West Florida Natural Gas Co.
(9/15)
13 it was reported that the

July

company

register $1,750,000 of notes and
writer—Beil & Hough

common

stock.

Inc., St. Petersburg, Fla.

plans

to

Under¬

fi

1959

I

Number 5870

190

Volume
■.

.

S Continued from,

ided

«

.

benefit

6

page

the purchasing power
the policy holder in any event.

by

Life Insurance in
Achieving Our Economic Goals

ring
ndi.

U)
B

I

justified in hav¬

are

is

There

that

every

wjii

foresight

the

display

continue

Vlor1on

anc-

ng-

by enlarging

economy

and has reduced the traditional instability of such exnenditures..
It has done this by
«ivi,w families greater confidence

goods

•ot

have come into greater public
favor. One of my colleagues addressed a meeting of successful

Un.

Jhio.

3

is-

-To

Small wonder that, of all busi-

■mL of homes

¥

plied

%

Lhor-

•|

(par
riter

|
|
j

liberal credit terms,

on

have
family income availcompanies

insurance

life

made more

able for other purposes.

free economy by leading to a
wider
ownership of shares in

battle

of news this year was

items

year

the

number

con-

the

common

recent

given much credit for the
favorable
turn
in
the

enterprises. One of the
startling,
and
reassuring,

most

the

&

d&

Ripd on

•|§

Insurance

Life

1958

of

Institute

Life

(n. y.
1959).

Book

Fact

Insurance,

re-

ates.

Esso,
AMERICAN
CAN COMPANY

''

stock

preferred

July

and three-quarters per cent was

1959

28,

remain

will

Transfer

com-

latei
corn-

Co.

nch,
itiei

Co.

of direct owners of
stock of American

have

We

has

ance

and

seen

done

Prospect
life

that

30

its full

part

over

Moreover, the habits
of thrift
and systematic saving so firmly
lmplanted by life insurance are

adfirm.

m

the

COMPANY INC.

PACIFIC

100 church street, new york 7, n.y.

monthly

its

S S

fices

The Board of Directors of the

Company,
this

at

a

on

meeting held

day, declared

♦

DIVIDEND NOTICE

quarterly
share

a

#

cents per

A

Sept. 10, 1959 to share¬

ment

holders of record

will conThey

problems.

insur¬

paved the way.

Life

Insurance

>osed

of the

th &

Let

us

now

As

a

Defender

Dollar

assess

also

Freeport N Y and
another plant
Qceanside Road
OceanyThe company is pri-

the

reg-

°rl<Lof

inflation,

jLblic

the

+a

life

States

^rst victims.01
insurance

m-

-t

nue,
lar
_

manuFac-

upon these investments. Incidentally, it is a curious fact that stocks

lans

stable unit

a

«ber,
curjeen

long pull.
dollars

of

It

now

pccount over the

asks

people to

pay

in return for benefits

payable in dollars long in the future.
Unless people believe each
tuture
ssue

the

>nics
de-

jeth,

dollar

will

buy

approxi-

believe

that

life

each

insurance

should be allowed to dethis matter for itself.
An

cide

offer
First,
in a dynamic economy there is a
presumption in favor of giving
business enterprises wide latitude
to adapt their services, because

economist
some

Government.

ares

may,

however,

now,
they
will
to
save
through

not petition benefits the public. Seclife 'ondly,
as
our
society becomes
insurance.
richer it is possible that investUp to recent years the assump- ments in equity form may become
lion of
long-term stability of the relatively more important in the
P"ce
level
was
not
questioned private sector of the economy.
If
viaely. But the upward creeping So, there
is, merit in permitting
-

on

costs> during slack as life insurance companies to ex-

xx-oii

hen
iter

able
and
iner

the

Filr.rS Unaam^ntally changed popu- nally, if a life insurance company
VJb e,^Pec^ati°ns about the future,
does offer the public contracts
npot
+-er we^~ or ill-founded ex- carrying variable
benefits, it
in
J1!
Persisienl inflation should not present such contracts
da.v
iuture are widespread to- as a "hedge against inflation" but

i

,as during prosperous times.

T'fl

snvoi
to
ier-

pand their "line of products."

as a means

.

i!?n

The

pany

after

♦

b. c.

in

ah hfe insurance in force
whole life and endowment




Reynolds,

Secretary

^

♦

PHELPS DODGE
of

Board

September
and

ONE

of

DIVIDEND

declared

has

Directors

ending

quarter

for

1959

30,

CORPORATION

ONE-HALF

(ll/2%) PER CENT or $1.50 per share
on
PREFERRED STOCK, payable Octo¬

of record

20, 1959 to shareholders
6, 1959.

ber

October

The

declared a DIVIDEND of
on

$.45 per
payable

August

11,

dend

1959.

G. F. Cronmiller,

per

Jr.

Vice President and

Board

declared

1959 to shareholders of

September 1,
record

STOCK,

COMMON

this

Secretary

a

divi¬

of Seventy-five Cents

(754)

the capital stock of
Corporation, payable Sep¬

share

on

stockholders

of record August 14,
M. W.

~~

has

of Directors

third-quarter

tember 10, 1959 to

1959

Pittsburgh, July 30,

260,202 shares outstanding,

1959.

URQUHART,

NOTICE

FINANCIAL

Treasurer.

mm

Notice to

FLINTKOTE

Security Holders of

July 29, 1959

economy.

The

that, persistent inBation
be avoided; and a variable-

chance
will

UNITED GAS
CORPORATION
Manufacturer of the
Earnings Statements

for Twelve

of Building

Broadest Line

Products in America

Month Period Ended
June

YALE & TOWNE
286fh Quarterly Dividend

THE FLINTKOTE COMPANY

30, 1 959

United Gas Corporation

New York 20,

has made gen¬

its security holders
earnings statements of United Gas Cor¬
poration and of United Gas Corpo¬

37Vi<t

N. Y.

a

Share

erally available to

consolidated
for the period from July 1. 1958 to
June 30, 1959, such period being the
12-month period beginning on the first
ration

and.

Subsidiaries

day of the month next succeeding
effective date (June 25, 195S) of

the
the

Registration Statement filed with the
Securities and Exchange Commission
relating to the sale of $40,000 000
principal amount of
Sinking
Fund Debentures due 1978, of United
Gas Corporation. Copies of such earn¬
ings statements will be mailed upon
request to any of the Corporation s
security holders and ether interested
parties.

of oarticipating in the

has already dealt a growth of the U. S.

hntn,-,e
°)v ^,°
i^e insurance sale of variable annuities is no*
7Qcr
efs'
.encl
about without pitfalls. There is a good
,L'P.

July 29, 1959.

July 31, 1959.

share

general observations.

_

k. *

declared by the Board

of Directors on

company

ma?
as milch as a dollar sur- increased inter-institutional cornrendered
continue

»

Secretary

#

The American life insurance in-

dustry has always operated upon
the
assumption that the dollar h

1959, was

H. W. Balgooyen,
Executive Vice President

Also

capitalization of the comgiving effect to the
should buy common stocks and present financing will consist of
offer the public contracts whose 500,000 authorized shares of cornbenefits
vary
with the returns m0n stock (par 10 cents), with

been one of the most buiked larger in life insurance
pr?Lag0r\
°1
portfolios in 1906 than they do
6
va^ue
dol-. today, then forming 4.6% of total
investments against 3.1% now! I

£

:ds—=—

made

integrity of the dollar

3610

ture

exciting .current issue is
insurance companies

One

value),

1, 1959, to
stockholders of record Augustl5,

maintains

0tf ™rily Jgaged in°X
and assembly of

and investment.

stock ($10 par

Highway

j

[t
lA

whether life

the contribu¬

tion that life insurance has
to

of

share on the

of^

executive

electronic
marketing of insurance and vigoi - equipment and parts used directly
ous rivalry with other institutions
and
indirectly
by
the
United
of savings

ma on

the rising burden

fZi mma?ket a,ha--e pUb"f reSul.fon. the

v-nt

ance

include

and

per

payable September

1959.

and

cents

common

the close

at

of business Aug. 10,

60

dividend

regular quarterly

of

the Common Stock for pay¬

located at 112 East Sun-

are

taxation, the possible extension of

stock-

new

spurred the trend; but life

New

life insurance

dustries,

front its share of

com¬

The

its operations to changes in
Like other in-

environment.

lowed
bu

lance

adap(

J

CORPORATION

FINANCE

dividend of 25

sfncTLX

will

countless

York 20, N.Y.

POWER

Was Oversubscribed

0^00^^

security purchase plans being fol-

by

1959.

Rockefeller Plaza, New

FOREIGN

working capital
de^' comnanv^
ofcSSed

used

record at
Au¬

of

of business on

close

gust 10,

Offer of Lieso, Inc.

insur¬

suming that our civilization is not
T]
et Droceeds will be used
destroyed in a third world war, all for
machinery
and
laboratory
one
can
say
with assurance is eauiDment for the consolidation
that
the pace
of scientific and
will flourish.
It is no accident technological change will rise, and retirement
of
certain
corporate
that the recent growth of direct that the U. S. economy will grow deb s
and for
share ownership has followed a greatiy and change rapidly durwas
in
generation of growth in provision ing the next century.
A para- New York on Sept. 19 1951, as
for family security.
Millions of m0unt problem of our country T prnpr instrument & Electronics
people now feel sufficiently pro- wiU be to increase savings suffi- Manufacturing Corp. and changed
tected against the large hazards of ciently to meet the great prospect- ;+s name^to Lieco Inc. on Sept. 3
life to be willing to assume the
jVe demands for investment funds. 1953
It has been'continuously in
risks of common stock ownership. Every industry will be obliged to business

being

on

AMERICAN &
Retrospect

thai

and
opportunities of
business, and makes them more
aware of the need to maintain an
environment
in
which business

now

July 30,

dividend is pay¬
September 10, 1959,

stockholders

to

the

Notice

stock of

share on

This

1959.
able

a

the capital

on

55 cents per

open.

,

imon

declared

has

Cash Dividend

JOHN R. HENRY, Secretary

Dividend

of Directors

The Board

a

books
Checks will be mailed.
19159.

JERSEY)

(INCORPORATED IN NEW

quarterly dividend of
declared
on
the Preferred Stock of this Company,
payable October 1, 1959 to Stockholders of
record at the close of business September 11,

On

one

COMPANY

STANDARD OIL

against inflation.

problems

hase

NOTICES

DIVIDEND

1959).

direct exposure to the growth in the next century? As- subscribed.

persons a

Street.

Inc., 265 Montgomery

doubled the last century to advance our
J. A. Winston & Co., Inc. and
during the past six years. From nation toward its economic goals.
_
6^2 million persons in 1953 the We enjoy a more vigorous, a freer, NeVheriands Securities'Co!," Inc.,
number of "capitalists" has risen
and a more stable economy as a on jujy 39 publicly offered 100,to 13 million persons today! This
result of its presence.
000 shares of common stock (par
broadening of the base of ownerwhat of the future? Will life in- 10 cents) of Lieco, Inc. at $3 per
ship of business firms gives more surance continue its spectacular share. This offering was over-

rrill

JEANNERET,
Secretary and Treasurer

Jg% c(a£yleYEu^;JthQlcintmy'VroHs",

business corporations has

by
:t&

South Band, Indiana

T. E.

surance

predating dollar, they should be

s. a. Inc.

Drewrys Limited u.

Calif .—Rich¬
ard
Ruslender has now become
connected with Walston
& Co.,

the life insurance research sponsored by the Life Insurance
industry has been the strongest Asi!ociatio"
America.)
critic of inflationary policies. By in
s °}psrTn^eton, 1955L °
aV'n8
their words and their deeds its exr. w. Goldsmith, Financial intermediecutives have aroused people to «««« in the American Economy (N. w.
the wastes of inflation.
Having Naj; lU0T.eaJy °9S^!Reco?daof i?(e /nInvestments
(Life
Insurance
contributed mightily to the current public concern about a de- Association of America, i958).

our

of 1959 has been

SAN FRANCISCO,

ments of the life insurance industry has

strengthened

Life insurance has

quarterly dividend of forty (40)
per share for the third quarter
declared on the com¬
mon
stock, payable September 10,
1959 to stockholders of record at the
close of business on August 24, 1959.

A

cents

With Walston Co.

Now

tjlor are listed here. (One of the achieve-

groups,

ness

business
ig to

ing.

!£eou*xthe"u" s°f economy'cthough

event of the death of the breadwinner, a family is more Willing
to go
into debt to purchase a

Build¬

Co., Inc., Wachovia Bank

^ed for a wide audience the primary
sources of information used by the au-

,m home, auto and household equip1$ i ment. By financing the purchase

ram.

&

inappropriate in a short article in-

life insurance agents last month,
.
,
'
Having assured and found that some had never
basic needs in sold an annuity!

their futures.
nrovision of its
in

CHARLOTTE,
N.
C.—Francis
with R. S. Dickson

E. Price is now

author's note:—Because footnotes
are

giving Idlluiicb gicdici

pet

Now With R. S. Dickson

to

flex-

and

office at 618 Park Ave.

branch

to believe

reason

leaders

its

strengthened

also

has

!
5

iers:

COLLINGSWOOD,
N.
J.
—
C. Schmidt has opened a

Henry

ing confidence in the future of the
American life insurance industry.

•

,

rri

and

NOTICES

DIVIDEND

New Schmidt Office

47

oil

our free plans and only 20% was term inthey have shown in the
and stabii- surance lacking a savings element. pa3^ por my part, I have no
izing people's expenditures.
TalK Now tnese proportions have be- dcubt that in the next century life
to the young' families in tne enucome 54% and^45%. Savings-type insurance will foster progress,
less new subdivisions ringing our
insurance in force has increased undergird our freedoms, and ele1 large cities and you will find only 90% since 1946 whereas term va^e our serise 0£ responsibility
I much evidence that life insurance insurance has risen by o20%. The £or a sound dollar as effectively as
has enlarged markets for houses,
annual growth of life insurance
dias in the century of progress
automobiles and other durable assets has slackened as equities we celebrate today,

Of

y

A.-,

i

j

.

„

0
be

e

You

The Role of

that

policy may not

insurance

protect

i

pre.

(559)

The Commercial and Financial Chronicle

'

v

.

.

. . .

J. H. Miracle,
Vice

President.and Treasurer

1525 Fairfield Avenue

Shreveport.

Louisiana

August 4, 1959

quarterly dividends
have been declared as

Payable:

follows:

Oct.

Common Stock*
45

cents

per

share

$4 Cumulative Preferred
$1

per

1f 1959

Record date:

Sept. 10,1959

Stock

Declared:

share

$4.50 Series A Convertible

July 30, 1959

Second

Preferred Stock

$1.121/2

per

Wm. H.

share

dividends

are

JAMES E.

McCAULEY

Treasurer

August 5. 1959.

MATHERS

Vice-President

payable Sep¬
tember 15, 1959 to stockholders of
record at the close of business
August 20, 1959.

These

and Secretory

the

YALE & TOWNE mfg.co.
Products since 1868
Equipment since 1875

Lock and Hardware
Materials Handling

consecutive

dividend

Cash dividends paid every year

since 1899

48

The Commercial and Financial Chronicle

(560)

; ;

.

Thursday; August

fice,
Washington
(paper), 25c."
'v

BUSINESS BUZZ

Exchange
nual

^

behind-the-scenes interpretations

D. C.

■

McClellan
the

Rackets

American

stand

condemned

without

if

passing

it

adjourns

Of

anti-

some

Unquestionably the most im¬
issue
facing
Congress is corrective
legislation to curb some

labor

of the

who

tie this country in

George

nomic

but

crooks,

Labor

"is

Education

on

hardly

expression

nobfe

of

than

more

ment

pious suggestions,"
Congressman
described

one

as

it

so

well.

;

millions
and

of

working

loyal

women

both

—

the

to

owes

blue

men

collar

workers and white collar work¬

ers—the

of

passage

lation with teeth in it.
makers

will

countrymen

they
not

The law¬

their

the

fellow

great disservice if

a

legislation

pass

curb

do

legis¬

some

will

that

hoodlums that

are

American workmen. The

is

Failure by Congress to meas¬
would

be

responsibility
open invitation to

an

the horde of Fifth Amendment-

taking hoodlums before the Mc¬
Clellan
their

SEC

©EDOifl

Committee

blackmail

to

increase

fraud,

violence,

stealing,

and

other

acts

of

business

Protests have

The good, hard-working
ple everywhere in America

peo¬
owe

.debt of gratitude to Sen. John

a

L.

McClellan

has shown

a

of courage

of

Arkansas, who

tremendous amount

to point out

of

many

the

SEC

groups.

your

quire

by

agency

to

tinue
fort

dictators

their

to

influence

control

elections,

years.

like
in

an

and

more

local,

state

the
con¬

ef¬

more

and

1

**

Real Bill Unlikely

bill

can

a

pass

real labor

this

year.

However, some type of bill con¬
ceivably could get through after
a
long and bitter floor fight in
the

House.

Senate
after
T

-

bill

killed

last

a

year

much

f t

a

The House

passed

wrangling on' the
Hartley
amendments.

-

Some

observers

thing

same

feel

the

happen

might

that

this

year.

Protestants

pointed
to

out

buy,

must

.

provision;

Ulp pMa_

wHj

provisions
of
dispute.
existing
laws*
as
many

..e

employers

will

testify,

harassment

age

and

encour¬

blackmail¬

ing of employers by labor hood¬
lums.
for

to

They

also

dishonest

intimidate

make

union

it

easy

higherups

business

and

in¬

dustry in general.
Most Southern Democrats and

would restore criminal

penalties, as provided in the
Kennedy bill, for violations of
rights given union members in
a

union "bill of

Attacked
The
out

rights."

measure

Alabama,


?P°ylse La^Dr


"Our

most

highly confidential

or

ward

trend

that

so

rates

kept
not

as

behalf

to

of

of

2,700,000

in

Sod investors.

It has in¬

vited cornments by Aug. 15.
"We

are

unable

investors
would

be

and

to

how

own

when

the

will be ir¬

reparably damaged," the Cham¬
ber advised the Federal agency.
"Of even greater concern is the

damage

the

proposed

amend¬

in
or

leum

tries

of

6% reported rates in

6%.
Interest

less.

proach

with

514%

the

a

marked

of

rate

increase

porting"

areas

and
in

a

a

the

in

Gotthelf

Communications to

Money—D.

H.

of

Robertson—Uni

Chicago

New

Press, 575
Chicago 37, IT

Inflation—Willard L. Thorf

Merrill

—

Com¬

Forecast,

Come

—

Cantor

New York

Pictures

tory

90

50th

compiled for profe:
of pictures, photc
graphs
and
other
forms
visual communications—Speeia
users

Libraries

Association, 31 Eas
York 3, N. I

10th Street, New

— Analysis c
Statements—Dougla
Bellemore—Simmons-Board

Security

Analysis

Financial
H.

Publishing

man

Church
N. Y.

cago

6% rate.

&

Management"—

Engineer Publishing

26 111.,

50c.

Dramatic Story of Helping Others

pretation from the nation's Capital

2

Corp.,

York 1

New

Street,

(cloth), $5.00,

Technological Advance and Fa
Policies
National
Plannit?
—

Association,

Corp., 7720 Sheridan Road, Chi¬

[This column is intended to re¬
flect the "behind the scene" inter¬

Introduc

List

sional

New

Hamp

shire

Telephone

re¬

Richard

36, N. Y., $5.00.

Engineer

a

and

Sources—An

anniversary issue of "Telephone

corresponding
number

Futures

Broadway, New York 7,
N.
Y.
(paper), $50 (with one
month's service).

the

reporting

Authority
111 Eighth Avenue, New Yor
11, N. Y. (paper).

$3.50.

New ApCommodity Profits-

B.

modity

quarter,

decrease

Co.,

West

mortgages

second

to

Edward

existing
homes
in
good
neighborhoods also moved up¬
in

Chemical

System—A

4

on

ward

Davison

Commodex

;
for

rates

refining and other indus¬
—

W. R. Grace &
Baltimore 3, Md. (paper).

excess

_

C.

Division,

the

5*4% rate, 25% re¬
ported 534%, 43% reported 6%,
and

D.

Catalagram—A quarterly publica¬
tion for catalyst users in
petro¬

reported the
.

Bonds

York

ing Company, 327 West 41st S'

States, Economic
Re¬
Department, Washington
(paper), $1.00 (quan¬
tity prices on request).

mort¬

decrease

a

New

Quandt—McGraw-Hill Publish

6,

report¬

reporting 5V4%

number

stockholders

benefitted

corporation they

see

and

Infla¬

and

search

increase

areas

Prices

Authori

Consolidated

United

a

Of the communities, 5% report¬
ed rates of less than
5%%, 21%

only

position to answer
inquires,
and
to
make
this
highly confidential information,
available to the
public. The SiSC
contends if
would help stock-

of

an

of

Future—Th

tion—Some Public Policy Issues
—Chamber of Commerce of the

interest

conventional

on

number

the

a

in

Administered

showed
of

its

Avenue,
(cloth), $2.25.

prevalent rate of 5%% or

a

gages,

avowed

mission

Trav

$6.00.

York

Ellis

up¬

likely to

increase

cent

per

number

more

its

purpose
of
the
pro¬
posed amendments is to put the
Securities and Exchange Com¬

is

the

survey

The survey found

busi¬

nessmen, sent a
letter to
SEC
declaring that the

and

the

New

versity

the first quarter.

over

ing

on

of rates

BOOKSHELF

said:

111.,

in

of

and

of

sur¬

a

from 225

indicates

The

Port
Port

conventional mortgages

on

in the

Commerce,
membership

Guide

10,

Investment

Businessman's

nation,

general

a

quarter

plans
merge

cases,

Chicago

be

Association

the

survey

disrupt the customer, employer
and stockholder relations of the

and

to

Help

ment

of

Themselves—Depart¬
State

Publication

6815

and may or may not coincide with

U.

ton

1606

Avenue, N. W., WashinS
9, D. C.
Prices

Wholesale

and

If

Price

dexes—May 1959 and preliraj
nary June 1959—U. S. Depart
ment of Labor, Bureau of
Labjr

Statistics, Washington 25, D. M
(paper).

—Superintendent of Documents,

the "Chronicle's" own'views.]

S.

Government

Printing Of-

those

which

are

Brokers

Attention

TRADING

interested

in selling hard-earned assets."
There is
mature

not

and Dealer?-

no

result

in

increased

market

speculation, but
would do damage in other ways.
Despite the Heat

Despite the hot, humid days
and nights
that have plagued
been

Official

si®**

Southeastern

Parl Marks
FOREIGN

brought
Carl El¬

and the other

Committeemen,

20 BROAD
a

lot going on. Whether

on

Treasury

bonds and E and H bonds
debatable

at

was

thi§ writing.

Our Nets!

&

Co. Inc.

Films

Pub, Serv.

York telephone

CAnai

,

number 0

6-3840

SECURITIES SPECIALISTS
STREET

TEL: HANOVER 2-0050

Congress will raise the in¬

terest ceiling rates

still

or

MARKETS

Botany Industries
Indian Head Mills

question that pre¬
public disclosure would

only

stock

not

by Representative

liott of

in

Gibney—Farrar, Strau
Cudahy, 101 Fifth Aventu
(cloth), $4.71

New York 3, N. Y.

Climbing

reports

on

across

continue."

advance

Poland,

—

Frank
and

more

Washington for weeks there has

by Meany

milder

the

correctly

assets

Ecu.

Sidney

ments would do to smaller firms

Republicans in the House prefer
the labor reform bill
brought
out
by
Representatives
Phil
M. Landrum, Democrat of Geor¬
gia, and Robert P. Griffin, Re¬
publican
of
Michigan.
Their
measure

that

based

vey

.,

have

sell

be,

Secondary boycott and picket-

ing

;

Rates

National

areas

The United States Chamber of

It is doubtful that

reform

The

the

of

10th

will
and

more

Real Estate Boards, after

supply
to

Treasury

issue

to

Mortgage

affected companies.

na¬

tional.

<

the

of assets.

Would-be

>

following an agreement
merge, or acquire or dispose

these hoodlums. He realizes that

James Hoffas would like to

to

information

the

not

relatively short-term debt.

month

his committee could continue its

investigation another two

If

forced

been filed with

corporations

and

Atlas—American Hotel Registe
Co., 234 West Ontario Stree'

by business and trade
The SEC wants to re¬

certain

Level, In¬
Dr.

—

Communist Decay

in

Hotel-Motel

:

Price

Revolution

Study

IVIiss Poodles, this recommendation from
last employer isn't too glowing—he merely states
you and he managed to co-exist."

bureauc¬

mergers.

„

the

Growth

Frozen

"Frankly,

racies, the Securities and Ex¬
change Commission would like
to broaden its scope of activity.
The
agency
wants to require
by edict an advance notice of

crime.

ICLEN.JR .1,3*

reason

compete
rising wage

can

Federal

most

i

Steel

Co., 56th
and Chestnut Streets, Philadel*
phia 39, Pa., $5.00.

3F

Looking to Expand

Like

of

Weintraub—Chilton

scales.

their

to

up

Pren

Building

Institute

Distribution,

come

nomic

running wild.

ure

—

Construction

,

Forecasting

machine
tools,
auto¬
mobiles, nails, steel rods, came¬
ras and other things are
being
sold.
Obviously the more
of
these foreign things sold means
fewer jobs
in the plants for
foreign goods
our
continually

Manage-

Inc.,
101
Park
New v York,
N. y

Avenue,
(paper).

radios,

the

(~~

Construction,

foreign-made

more

Resistant

—American

American stores and outlets.
and

for

Lewis

Modern Steel Framed

frankly apprehensive about the
increasing amount of foreign
products that are reaching the
More

Congress

Fire

seeking ever higher wages,
some
Washington officials are

1

This

leaders

labor

as

Analysis
Ronello

—

copy

New York 11, N. Y.

are

an

sentiment

and

Meantime,
.

and

FeZ
Washing!

per

tice-Hall, Inc., 70 Fifth Avenue

■

Committee

In

Financial
Consumers, etc J

of

Financial

wants to write the bill.

Nevertheless, the "milk toast"
bill reported out by the House

on

in

ton, D. C., 60c
per year).

Meany

Mr.

Bulletin—juiv

Board of Governors of the
eral Reserve
System,

along with legislation to curb

go

W

(paper).

Expansion;

Position

expected. President Meany will
the

f-. .'.'A.,'

knot.
"*

a

Rates

Pair

Ne!

St.

containing articles

terest

grievous harm to legitimate
unions. This attack was to be

,

42nd

Leading Com
tries; Money and Credit in
Eco*

the ground that it would

on

East

Reserve

1959

do

powerful labor racketeers 1

could

Agency

passed, if one

President

course,

able

domestic

86th

the

is

that

Washing
80

17, N. Y.

Federal

Meany of the AFL-CIO has de¬
nounced the bill as unaccept¬

racketeering legislation.
portant

bill

ever

,

on

205

York

should be passed.

will

n

' >

Internatiomi

—

Fund,

(paper).

Trade,

Employment

a

amendments to what¬

numerous

Committee,

Congress

has

q

'

Facts and Myths About
Fair Trad
—Bureau of Education

Eggplants
much
better
chance of passage. There will be
probably

WASHINGTON, D. C.—After
all the horrible, sordid, and corrupt
evils
unearthed
by the

25,

Restrictions—loth

report

Monetary

from the nation's capital

6*195

•

NEW YORK 5, N. Y.

TELETYPE NY 1-971

LERNER & CD.
Investment Securities

lj.my mm»Mime w u■ ■>, mu■■ ■ wmu

A

i

-V

10 Post Office

Square, Boston 9,

Telephone
HUbb ird 2-1990

^&