Full text of Commercial and Financial Chronicle : August 7, 1958, Vol. 188, No. 5766

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T

ESTABLISHED

I S3 9

Reg. U. s. Pat. Office

Volume 188

Number 576b'

New York 7. N.

Y., Thursday, August 7, 1958

Price 50 Cents

a

Copy

EDITORIAL

Quarterly InvestmentCompanySurvey

Mid-Year Business Outlook

As

H

See It K

e

By DR. MURRAY G. LEE*

We may or may not have seen the worst of the
current recession.

Among those best qualified to
the subject the concensus
seems to be that we
have, but no qualified ob¬
server
appears willing to predict that we shall
in the near future
regain any very important
fraction of the
ground lost during the past year.
We are still in a recession with
relatively high
unemployment—and that at the end of a year
have

an

opinion

ing, and

far

so

as

prices

provement in the economy during the coming fall months
but doubts—ignoring the international situation—we will

bounce back

as
rapidly as in 1949 and
Pondering how much further "we can travel
along
[the] road of rising debt, profit squeeze, and
price inflation," Dr. Lee envisages "a very hard day of
reckoning ahead" if inflation and cost-price-income

19S4,

.

still ris¬

are

was some time ago that
sweetly charged that the

Truman

Republican Administration had

ducing both
the

same

a

trick it

feit when

was

at

one

private spending

and

recession

has

political party or what political clique
responsible we leave to others to say, but it
does appear that we have on our hands at the
present time a recession—still hardly more than

a

fiscal deficit

midst the latest Middle East crisis.

12

months.

Industry groups fa-!
aircrafts, airlines, insurance, rails, oils, retail,
steels, tobaccos, utilities and coal. Divergent attitudes
shown toward aluminums, building,
chemicals, drags,;
container and glass, electricals,
machinery, natural gas,*

Tech¬

14

1885,

months

ten

had

The

or

less,

two

.[Tables

and

The

ferent

in

its

two

The

maintained their

mediately

and

were primarily
"in¬
recessions — they resulted
from a switch by business from in¬
ventory build-up to inventory run-

ti. JLee

off.

■\*

and

22

show Funds9
common

slock

transactions; and individual

transactions

by

industry

;

com¬

groups.}

.

year,

defensive policies

preceding

pursued

in the

im¬

While

quarters.

managements
stocks from the

stepped up their purchases of common
previous quarter, the3r accelerated even more their ac¬
quisitions of bonds and preferreds. The companies under

recessions

ventory"
L)r. Murray

21

when the mar¬
ket, as measured by the Dow-Jones Industrial Average,
registered a net advance of 7%, investment companies

postwar
1948

pages

During the second quarter of the

Also, it has been dif¬

character.

stock

mon

months,

^

than

on

and other securities

recession has been somewhat
severe

predecessors.
1953

13

appearing

comparative investment positions; total

reces¬

we

11

were

office equipments, papers, and tires. Interest in banks
and finance companies lessened. AT&T
top favorite.

nineteen recessions

since

of

respectively.
more

our
review bought 24%% more common stocks than
they sold, whereas in the March quarter, this purchase
balance was 22.2%. At the same time, however, pur¬
chases exceeded sales of investment grade bonds and
preferreds by 90.7%, compared with only 65.2% for the
first quarter. As a result, the net balance of new in¬
vestments was about evenly divided between commons

Other aspects of business activ¬

ity were little affected. In this latest recession, on the
other hand, we have had a general decline in several
key sectors of the economy. Not only has there been
very
heavy inventory liquidation, but we have also
Continued on page 14

28

are

had

1953-54—lasted

-

address

ciation,

SECURITIES NOW IN
securities

DEALERS

Adds

have experienced since
World War II—those of 1948-49 and

♦An

page

Of the

duration

sions that

circumstances, and particularly to Franklin
Roosevelt, we as a people appear to have become
firmly wed to a concept of economics and social

on

sees

Economic Research.

ous

Continued

was maintained
intact, at approximately
International oils still bought during the "preIraq" period. Special current survey reveals ambivalent
attitude, including moderate confidence, toward them

20%.

according to the National Bureau of

that date. Thanks to vari¬

philosophy which asserts that government can
and must prevent depressions and unemployment.
The procedures we insist upon using are the very
programs which have all through the years, and
even the centuries
preceding World War II been
regarded — and justly so — as being precisely
those which are best calculated to produce long

about

run

have

we

inflationary trend. We
suspect that were it necessary to fix political
blame for it, one would be
obliged to go back to
the beginning of the New Deal, and
possibly
even

now

summer.

persistent

somewhat before

senior securities

nically, it started last July, although the Fed's industrial
production index hit its peak (146) in December, 1956
and signs of a downturn were evident well
before last

he said.

is

a

and

resumes

keeping pace with common stock acquisitions. As
result, portfolio proportion in cash items and defensive

vored
The

What

mild—and

a

posing serious problems.

succeeded in pro¬

recession and inflation

a

time—quite

issues

.

impact will be

general level of wages. It
ex-President

.

distortion continue in the next cyclical
upswing.
further fear that government
spending

be determined, so is the

can

By A. WILFRED MAY

Analysis of investment companies' portfolio operations
during second quarter reveals purchases of defensive

boom levels

to

^

Midst Rising Maikel

Bankers Assn's economist perceives
possible modest im¬

on

of downward movement. Yet

Funds Still Cautious

,,

Secretary of the Economic Policy Commission
American Bankers Association, New York
City

afforded

a

White

REGISTRATION—Underwriters, dealers
complete picture of issues

tial undertakings in our

and

defensives—and, in fact, tilted slightly toward the

by Dr. Lee before the West Virginia Bankers Asso¬
Sulphur Springs, W. Va., July 26, 1958.

now

Continued

on

page

20

and investors in corporate

registered with the SEC and poten¬

"Securities in Registration" Section, starting

on

State, Municipal

38.

page

in

and

U. S. Government,
State and

Municipal

Securities
telephone:

MEMBERS

UNDERWRITERS

STATE

and

AND

10:00 AM-5:30 PM

of

BONDS

INVESTMENT

CHEMICAL

Inquiries

Burnham

and

YORK 5, N.Y.

Bonds and Notes

E.D.T
Southern

Securities

•

Dl 4-1400

Teletype: NY 1-708

Net

Distributor

To

Active

Dealers,

Markets

Banks

,

Co.

New

York

Stock

New York

Chase Manhattan

Exchange

Member American Stock

Exchange

BANK

Correspondent—-Pershing & Co.

Maintained

and

for

Brokers

Dealer

CANADIAN

CANADIAN

SECURITIES

BONDS & STOCKS

T.LAVatson&Co.
ESTABLISHED 1832

iidiili
i« i

iV;

h ! ■ i! i! i j i

'

ii.i n.i.n.i.!

/e*■£ ^

^

Members

American

Stock

CANADIAN

Exchange

.

25 BROAD

COMPANY

STREET

NEW YORK 4, N. Y.

DliiCT

Municipal Bond

DEPARTMENT

Department

Teletype NY 1-2270

WIRES TO

MONTREAL AND TORONTO

Goodbody

&




PoNcnox Securities
<Bunk of America

Grporatioti

Co.

I

MEMBERS NEW YORK STOCK EXCHANGE

DALLAS

Municipals

Canadian Exchanges

„

FIRST

California

Commission Orders Executed On All

New York Stock Exchange

DEPARTMENT

THE

Hope Street, Los Angeles 17,

Members
Associate

Bond Dept.

&

California

TELETYPE NY 1-2ZM

CABLE: COBOBNHAM

•

OF NEW YORK

Company

AMERICAN STOCK EXCHANGES

MEMBERS NEW YORK

15 BROAD STREET. NEW

Underwriter

Public Housing Agency

BOND

623 So.

ST.,N.Y.

on

Lester, Ryons
THE FIRST NATIONAL CITY BANK

department

Invited

California

BANK
bond

EXCHANGE

SECURITIES

CORN EXCHANGE

30 BROAD

COAST

Trading Hours

DISTRIBUTORS

HAnover 2-3700

PACIFIC

MUNICIPAL

BRIDGEPORT

PERTH AMBOY

115 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.

CHICAGO

40

Exchange Place, New York 5, N. Y.
300 MONTGOMERY STREET

Teletype NY 1-702-3

WHitehall 4-8161

-

SAN FRANCISCO 20.

...

.

CALIFORNIA

The Commercial and Financial Chronicle
2

.

.

Thursday, August 7, 1958

.

(498)

For Hanks,

The

Brokers. Dealers only

Specialists for
30 years

Security I Like Best

This Week's

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

A continuous forum in which, each

over

Kb the investment

in

participate and give their

reasons

for favoring

are not intended to be, nor
offer to sell the securities discussed.)

(The articles contained in this fornm

they to be regarded,

acre

as an

Quarterly

Our 105th Consecutive

Dallas, Texas

New Mexico,

Available

request

on

New York Hanseatic

Member

Broadway, New York 5
BOSTON

Wires

Private

to

the

mining

and

area

America.

Daily

ore pro¬

of

excess

Tom B. Boston

month, operating on a
5-day
week.
Profits from this
mine alone, without considering
Rio's portion of the milling profits,
tons

Since 1917

month. Production from
No. 1 can (and will)
be
increased considerably when
additional mill capacity is available. Rio holds mining rights and
net

per

Rio's Dysart

leases

ffiPONNELL & CO.
Kff omhoTfl

,

Exchange

Stock

York

New

NEW YORK B

120 BROADWAY,

TEL. RFetor 2-7815

'

in the Ambrosio area and is

acres

Mexico

Homestake-New

mill

and

opened

The

a

April

on

Life Insurance Co. of Va.
Commonwealth Natural Gas

STRADER and COMPANY, Inc.

1958.

26,

day mill for furnishing the

60% of the mill profits,
It is

TWX LY 77

—5-2527—

Private

Wire

to

York

New

City

Twpit.j,t|l

^

apparent that Rio's mining

Rio's
No.
to

INSURANCE COMPANIES

of its

in

be

Sec. ^6

in the Dysart
are believed

of

3,000,000 tons.
A projection of earnings for Rio's
first full year of operations based
on
present production and immediate
planning
would
range
excess

to $5,000,000 net,
between 25C to 40? per share

or

sibilities through the sale of

to

ore

reserves

ore

and in

1

from

The additional income pos¬

$3,000,000

Rio's

on

11,325,000

outstanding

Put

and

Call

worthy of

Options

are

investigation.

A

of

firm

our

will be glad to explain the

subject

to

those

who

following paragraph from
the March-April issue of "Ura¬
nium
Magazine's"
article
on
describes

the

efficiency

"Ore

from

"Thanks

to

on

Hotc

to

Use

the

new

Oro

As the

thousands

Dysart) mine of,

Uranium

190 Broadway, N. Y. 5

its

current

stock. To

date it has

rate

is

ore

above

"This mine is the envy of other

operators in the
BArclay 7-6100




its

their excellent
progress

is the

leading

man,

President
S p y r o s

P.

Skouras, who
heads

an

out¬

standing cast
(Board of Di¬
rectors). Many
problems have

ore

-

area

As to

because it is

is continuous

Mr.

politicians

say,

"let's look

Earnings Per Share

in

other

It

countries.

a

owns

which
has about 55% voting control and
40% ownership of the GaumontBritish Corp. Ltd. which operates
interest in

about

company

a

in Great

theaters

230

pany's

and

it

lays flat. Situated at the northern

to

$0.79
1.65 '

3.04

£

of

New

York, Ino.;

Affiliate

of

'

Yamaichi Securities Co,,

Tokyo, Japan
Brokers

Investment

&

Ltd.

-

,

.

Bankers

111 Broadway, N.Y. 9 COrUandt

T-5819

Brit¬

In. 1956, African Theaters Ltd.
acquired, which included over"
140 theaters in South Africa. Divi¬

ain.

was

from

dends

1957;

foreign
$840,882

were

actual earnings of

holdings m
out of total

Burns Bros. & Denton
INC.

$1,382,000.

Twentieth Century is constantly

expanding its interests in the field
television, and revenues from,

37 Walt

Street, New York 5, N. Y.

of

old

films

well

as

leased

TV

television

for

programs

are

as

Underwriters—Distributors

becom¬

important. For these
the company has a
wholly-6wned subsidiary,, T.C.F.
Television Productions, Inc. which
makes TV films; and : also owns

Dealers

-

5

purposes,

of the N.T.A. Film Network,

Gun."
to 8

or

In

"Man Without

a

They hope to expand this
10 programs in the future.

record field by forming a corpora¬

tion known
ord

The 20th Fox Rec¬

as

to be devoted to the
making and marketing of recorded
music.
The program for this cor¬
poration includes recordings in all
Corp.,

fields of music
and

Investment Securities

Canadian and Domestic

Opportunities Unlimited
IN JAPAN
Write

for

our

Monthly Stock

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

;

March, 1957, Twentieth Cen¬

tury-Fox entered the phonograph

will,

of

films

own

shown
which
itable

on

their

course,

own

61 Broadway, New York
Telephone:
Tliis

is

not

orders

for

6, N. Y.

BOwling^ Green 9-0187

an

offer

any

or

solicitation for

particular securities

label,

exploit their
A

interest

in" this

Ntmura Securities Co., Ltd.

sound-tracks.

and

world-wide

new

has

been

undertaking

should prove to be a

prof¬

of income.

source

Oil production will soon become

greater source of income for the
corporation. Since the inception of

^

production late in 1955 to Feb. 28,
1958—$6,451,622 of oil and natural

2.49

on

May

predicted

1958

20,

the

earnings

period

prediction

is

excellent .showing
pany's products

now

a

com-

would

of

ago.

year

based

on

the

All drilling and produc¬
on the Studio property
have been, and will continue to
be, advanced by Universal Con¬
solidated Oil Co. Upon full reeov-_
tion

per share, as compared
with $4,070,000 or $1.54 per share

This

Yamaichi ;
v
Securities Company

saving^

$730,634.

2.28
2.34

half-year

same

write

have been produced and sold,
and the royalties paid to Twen-'
tieth
Century-Fox amounted to

$2.20

for the

information

or

gas

current earnings—at the

Skouras

Call

180 theaters in

include

exhibition

49%

current

a

and; be approximately $5,000,000, equal

15,000

tons per month.

dry,

'big reason for

Mines, Inc.,. annual meeting

Call Brokers <fc

Dealers Assn., Inc.

of—

consists

that

Millionaire" and

Year

MBLne"

produced 140,000 tons of

Members Put &

what

see

company's interests in foreign

50%

the record":

Rio's

of

mill won't suffer for lack

of charging

Fun, Schmidts Co.

P(iri

Fi,m

at this time.

dry ore from the

Section 11 (Stella
Rio De

Stock Options

Rio's

umpteen

of tons of good

Ash for Booklet

RttnUirv FnY

challenged the film industry dur*ng recent years, and in my opini°n' Twentieth Century-Fox has
met the challenge. For these reasons, I have selected this. "20th-.
Century" company forJhe Chroni-'

Dysart mine.

are

Interested.

,

George V. Honeycutt

"Ambrosio Lake's First Mill" best

representative

came

cle's "Security I Like Best" forum

shares.
The

*

tieth

30

For

ing highly

HONEYCUTT

Twen"eth Century-Fox Film Corp.

other mills
being constructed in the area.

INVESTMENT TRUSTS

V.

Harris, Upham & Co.,'
Los Angeles, Calif.
:
Members: New York Stock Exchange

production will far exceed the
yearly capacity of this mill and it
will either have to be expanded,
or
Rio will have to sell a large
portion

PENSION FUNDS

$53,000,000 of Twen¬
Century's income in
1957
from foreign film rentals,

Inc. (the other 50% is owned by
financing for construeThe future of Twentieth CenNational (Telefilm Associates). The
tion.
Mr.
Clyde
Osborn,
the tury-Fox Film Corp. should be as
company has recently concluded a
designer and manager of the mill, dramatic as some of their film
deal with National Telefilm Asso¬
owns
a
3% fixed interest.
The releases. It is rich in talent and
ciates, Inc.- for re-runs of the
ownership of the remaining 62%
experience
in
"Twentieth Century - Fox Hour."
is determined on the ratio of ore
a highly com¬
Currently they are producing—in
shipped to the mill. To date, Rio
petitive field,
association with National Televi¬
has supplied approximately 99%
as
well as in
sion Association—two series of 39of the ore for the mill and will,
oil and real
episodes each, "How to Marry a
therefore, be credited with about
estate.
One

LYNCHBURG, VA.
LD 39

19532746

GEORGE

Part¬

fixed interest in this 800-

25%

ton per

Bassett Furniture Industries

in

is

recommend the purchase of
Rio De Oro Uranium Mines, Inc.
I

necessary

American Furniture

Rio

of

management

the very capable hands of attorney
Rodney De Villier, its President;
Ray Shultz,
Mining Superintendent; Clyde Osborn, General
Manager of the mill; G. R. Kennedy, Geologist;\ F. A. Fuller,
Treasurer; R. F. Deacon Arledge,
Secretary; A. G.* Willis, VicePresident.

Homestake Mining Company owns

Trailing Interest In

branch offlcaa

our

japanese

almost

Australia, 50 in New Zealand and

officially dedicated

was

Mobile,Ala.

Direct wires to

$127,662,227

Total
As

subsidiary Hidden Splendor Min¬
ing Company.

shaft

ners

^

.101,125,157

operating income

let's

Corporation

common
stock on a speculative
in Sec. 26 on which basis to those desiring a growth
large,
high-grade
ore
reserves stock in the atomic energy field,
have been proven by core drilling.
>' >
,

^

*

■

other

and

Dividends

The

currently sinking its second mining

Exchange

Stock

American

7,000

approximately

on

N, Y. /
~

NY 1-1557

New Orleans, La.-Birmingham, Ala.

$117,537,070

by Floyd Odium owns controlling
interest in Rio De Oro through its

per

estimated to be about $160,000

are

HAnover 2-0700

a

headed

800

day,

per

averaging
about 16,000

rkihts & scrip

if

one

no

ventures

Atlas

The

in

is

19 Rector St., Hew York 8,

:

tions under way,

in

Ambrosio

tons

Specialists in

surprise

while their own
move - ahead
gradually toward large-scale pro¬
duction
in
spite of difficulties,
mostly too much water."

ura¬

mine

Members American Stock Exchange

52,987,463

Foreign

will

ground

duction

Principal Cities

soup.'

"It

York Stock Exchange,

Members New

-

piles to help them get mill opera¬

in

SAN FRANCISCO

•

Steiner, Rouse&Go.

are

CHICAGO

•

PHILADELPHIA

Stella

a;

couple of the larger mills soon to
be completed draw on Rio's stock¬

Lake

Teletype NY 1-40

WOrth 4-2300

Corp.—George V. Honeycutt, of

..."

largest under¬

the
120

also

Co.,

Film

Fox

Harris, Upham & Co., Los An-,
geles, Calif. (Page 2)

c

Dysart No. 1
mineisthe

nium

Exchange

Stock

Fuels

K e r m a

-

"Mining costs in the

Grants,

area near

is considered by the

Rio De Oro's

1920

Established
Associate
American

Nuclear

Dysart state lease.

reserves.

Corporation
,<

of

Bought—Sold—Quoted

Century

Rio mine
remarkably low, so all in all
In 1957 Twentieth Century-Fox's
Atomic
Energy
Commission to the operation cheers the area's
contain over 50% of the United operators, many of whom are hav¬ income came from the following:
ing more than the expected diffi¬ Film rentals, incl. TV
States
culties in coping with 'mining in
uranium
Domestic
$64,549,607
Ambrosio Lake

United States

:

Oro Uranium Mines, Inc.

Rio De

of the

and Trust Companies

10

.

(Page 2)

Twentieth

adjoining

the

is

as

mine

Section

the

President
Co.,Dallas,

Boston,

Securities

Boston

above

is

it

field

table,

water

President, Boston Securities Co.,,

Comparison of Leading Banks

the

of

end

TOM B. BOSTON

B.

Texas.

Louisiana Securities

Uranium Mines, Inc.

Oro

De

Rio

—Tom

Bank Stocks

Alabama &

Their Selections

particular security.

a

Participants and

Forum

the

com-

in release:

'•

ery

costs

of these costs, Twentieth Cen¬

tury-Fox's share
from

the

sale

of

of the

proceeds
oil and gas will

Over-the-Counter

Quotation Services
for 44 Years v!

increase-from the basic royalty of

11.32%/ to; an amount equivalent
to

51.32%

less

half /of

-

the

operating

which, on* the basis of actual
duction and sales in
be

!

o

•

of total gross revenues

approximately

costs
pro¬

$1,263,890

Continued

Established 297?

1957, would

on

page

4€ Front Street
per
CHICAGO

35

NnrtaH&L
SAN FRANCISCO

Volume

188

Number 5766

.

.

The Commercial and

.

Financial Chronicle

(499)

Trouble in the Government

INDEX
Articles and News

Securities Market

Funds

By ROY L. REIERSON

Vice-President

and

Mid-Year Business

Impressions of China—James
Muir____.

Reinvestment Depreciation: What

prising high level of demand for long-term funds and
suspects
long-term market will regain much of the ground lost in
past

Raising the

—M.

more

j ust

financial

witnessedv-

most

a

has

lows

_

unusual

r o p

ment

when business

activity

lion

in

recession

low

sulted

following

the

Some

sharpest
decline

since

prewar

days,

and

when

the

up

in

f;

Estimated

$12

extent

Reserve

has

been

furnish¬
reserves

to

the

ma

the

money

rket

Roy L. Reierson

in

massive
amounts. No doubt the recent im¬

provement
tistics and

in

mistic

in

the

the

turn

business

sta¬

even
more ; opti¬
bysiness sentiment

underlie the persistent weakening
in
the
credit
markets; a more

immediate contributing factor
the huge speculative

was

interest that

We

See

and

Coming

developed in the Treasury, refund¬
ing operation in mid-June.
When the

picked
half of

slump in the market
in

speed

up

the

second

LITHIUM CORP.

4

It

(Editorial).

Insurance

Events

in

CORRUGATED

;

Cover

Stocks___L____

the

PAPER

30

!_____

:

44

Investment Field

7
8

may

these

real

data

clearly indicate,

17

in

pressure

the

market

37
*

Observations—A.
Our

Public

when business activity was
declining fairly sharply and
credit policy was one of aggres?

Some

ease.

weakness

.

veloped thereafter, but
date

the

June

these

the

of

financing,

securities

below
even

their

were

prices

'•

the Treasury made a
announcement of the

June, • the Treasury took
the unusual step of buying back
about $600 million of the newly

its

of

announcement

The Market
The

fact,10,?. before
preliminary

.

.

outcome

State

of Trade

Washington

of

and

and

JCY 1160

wires

.

Denver

to

&

"T*T

Seismograph*

42
:__

_____

__

____

You—By Wallace Streete

and

Perkin-Elmer

38

Offerings

36

Capital City TV

16

Industry.

i

5

*Report

;:;See Cover Page article "Funds Still Cautious
Midst Rising
operation, :: Market".,,..,
■/.;//;;
://
:
issued bonds; moreover, the Fed¬ prices had not receded very far
; - fSee Mr. May's article on Cover
Page.
" /
eral Reserve increased the tempo- from
their highs.. However,
the

'

American Marietta

44

____.

■

Pacific Uranium

2

You____-______J_

-

request

upon

.

June

financing

•

its

market

open

operations.

showed

However, weakness continued and,

$7 billion of 2%%

faced

had

with

debacle

in

refunding

the

prospect

the

recent

operation,

on

July

the Federal Reserve felt, it
sary

pub

to

sagging

a

market

and

a

18

neces¬

under

prop
-

of

Treasury

the

announced

that the range of its open market

operations
include
other

being broadened to
obligations
Treasury bills.
The

than

Federal

Reserve,

in

another
departure from its usual practice,
purchased over $1 billion of the
1%% certificates being offered in
the - July - Treasury ~ refinancing
operation
:

bonds of

1965

&

foi* the 11-month 1 xk % certificates

totalled

tive
A

the

number

additional factors

contributed
the prices

ties

$1.8

interest in

to

NSTA

Philadelphia

There

19.

NATIONAL

policy

might

was

We are pleased to report
that Col. Oliver J. Troster of

a

|

widely circulated

have

changed

5

ap¬

the
massive
peared almost simultaneously with
support provided by. the Federal
the announcement of a new $300
Reserve, conditions in the Gov¬

lized

only

market

temporarily

tjie liquidation has

stabi¬

However,

been resumed

i?i the past few days, and with the
Federal Reserve out of the market,

prices of

many

issues sank to

million
As

a

issue

of

industrial

to

be

dumped

in

and the weakness in this

jbonds.

was

'Continued

on

page

'

30
Published

have

specialized in

PREFERRED
STOCKS
\

Spencer Trask & Co.

*

-

'

Nashville

Boston
_




we

count

:can

Electronic Specialty

are

feel

L

*

Chicago

Schenectady

.

Glens Falls

Worcester

1

•;

|

Witco Chemical

'-t

'

B.

DANA

Park Place,

25

Patent

Company

;

£5.

ary

Thursday,

.

New York

2-9570

to

1942,

j

j

7, N. Y. '

9576

August

7,

1958

Thursday i general news aod ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
.

state

corporation netts, bank
city news, etc.).

clearings

and

Other

Chicago

Offices:

3,

111.

*

Prospectus

on

:

Request

;

second-class matter Febru¬

at

the

post

office

Subscription

135

South

(Telephone

La

STate

Countries,

St

2-0613)

*

i
Bank

$45.po

per

year.

per

rate

foreign
be

W» ». FRANKEl i CO
INCORPORATED

39

~

Publications

'

{

BROADWAY, NEW YORK 6
WHitehall

3-3960

<

Teletype NY 1-4040 & 4041

and

Quotation

year.

Note—On

must

$72.00

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j

the

Salle

Rates

Subscriptions in United States, U. 8
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and
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of
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year

Other

Every

records,

Epsco, Inc.

.

COMPANY, Publishers

WILLIAM DANA SEIBERT, President
;

as

!

Sulphur

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

Office

HERBERT D. SEIBERT, Editor & Publisher

,

Alfred F. Tiseh

!
f

r

Pan American

Copyright 1958 by William B. Dana

Reentered

Corp.*
.■

¥

40 Wall St., t New York 5, N.Y.

x

Other

TELETYPE NY 1-9

I

Ling Electronics

Col.

on

TISCH, Chairman
National Advertising Committee
r
I
{
c/o Fitzgerald & Company

Twice Weekly

U. -8.

REctcfr

-

25 BROAD ST., NEW YORK 4, N. Y.

TELEPHONE" HAnover 24300"

Dallas

the

appreciative and always

-

Reg

Members New York Stock Exchange

V

of

very

The COMMERCIAL and

*

Albany

Supplement

FINANCIAL CHRONICLE
WILLIAM

.

half page advertise¬
Yeai* Book Con¬

our

Troster.;

Olive* J. Troster

For many years we

a

ment for

.

new

Chicago

ALFRED

\iolumC
area

with

us

vention

"Financial Chronicle." We

result, the newly issued 2%'s

began

1

Angeles

Radorock Resources

Troster, Singer & Co., New
'.York City, has again favored

Notwithstanding

securities

Los

SECURITY TRADERS ASSOCIATION

article suggesting that' credit

news

N. Y.

sharp decline in

a

a

Direct W ires to

bonds.

improvement in business

sentiment and

Notes

San Francisco

of Government securi^

June

on

marked

of

INC.

40 Exchange Place,

Teletype NY 1-1825 & 1-4844

billion. This
news was unsettling to the market
since it indicated a huge specula¬
only

mackie,

HA 2-9000

.

ernment

Singer, Bean

over

been taken in exchange for
maturing issues, while exchanges

was

Government

that

(Foreign

account

of

oi

in

New

and

—

Monthly

Postage

the

exchange/

subscriptions
made

Record

extra.)

fluctuations

remittances

York

funds.

Direct

Wires

to

j

'

li

for
advertisements

t

)

Salt Lake City

32

Registration______—____

Security

.

Teletype:
Direct

>

HEnderson 4-8504

11

Security I Like Best

.The

-

June

as

Securities

on

still not far

DIgby 4-4970

36

Securities Salesman's Corner

of

April highs. In

late

as

May 29,

on

Exchange PL, Jersey City

33

Securities

Prospective

;

.

1

f

Governments.

Securities Now in
r

F.Reilly&Co.,Inc.

Members Salt Lgke City Stock
Exch.
Spokane Stock Exchange
•.

13
.

-

-de¬

announcement

Bankers—____

Wilfred May___—

011

Utility.

Railroad

still

'

Reporter

and

Our Reporter's Report

,...

time

sive

3

News- About Banks

•

J

16

NSTA Notes

developed after the Treasury fi-.
nancing in June. Prices of the
Treasury obligations offered "in
the February and April financings
reached their highs in
April, at a

the

PETROLEUM

32

_

As

.

FORTUNE

V

,

ing

'

^

BASIC ATOMICS

10

.___

... Dealer-Broker
pressures
on
the
Investment Recommendations
be / gleaned
from1 ,/Einzig: "Recession Scare
in Britain":_L/_______
Table I, which shows price and
From Washington Ahead of
the News-—Carlisle
other
pertinent
data
for
the
Bargeron__
Indication of Current Business
Treasury issues offered during the.
Activity..
r
first half of 1958.
Mutual Funds

Federal

r

;,

,.

downward

market

the

,

9

-

Regulafi Features

Business Man's Bookshelf

of

■_

,

FT. WAYNE

Bank

.

-

WALL STREET, NEW
YORK
Telephone: WHitehall 4-6551

12

-—

;

dev- *

from '

—

Obsolete Securities
Dept.

7

___.

*

„
.

99

Billion

_______

■;!

As

virtual

a

the

,

,

buying which re¬
drastic price attrition.
of

Randolph Burges^

been

deteriora^;.

and

Limit for

B. Anderson

Edwin G. Nourse Opposes
Employment Act Changes-__

' Vv

of

notion

W.

Govern-:"
has

serious

sentiment

drying

the

market

suffering from

is

its

near

mid-June,

securities

Debt

'I'fi

Highly Unsettled Market

Since

time

a

Statutory

Philip Cortncy Takes Issue With
Roger Babson's Views
;
011 Gold
(Letter to Editor)_l___

for

A

pre¬

cipitate d

—Hon.

1958,5 with the market
again in a highly unsettled state..

occurrence; the Government bond
:
market
has
undergone
a

.Watch future ads for our
estating on-the-scene reports

J

-

__________

advantage pf
Treasury financing to lighten its portfolio
contribute to some firming of money rates.

community

'

.Capital Gains Tax Retards New
Growth—H. L. Spencer_____ 10
The. Economic Situation in the
United States

lull until the next

The

5

the world

trunkful of obsolete*!

a

abroad.

Sales Management's New
Horizons—B. K.
Wickstrum__i_:i_//. What "Growth Stocks"
Would Shakespeare Pick? v
—Reid Taylor

hereon until market
improves; and Fed will take
which may

,

conquer

,P.,S.

It Is and What It Does

Peloubet

,Dc^ctt~rHon, Robert

:■

smaller and

are

E.

4

6

sluggish than generally expected."
Believes Federal Reserve will
again intervene if Treasury
financing is threatened; Treasury will emphasize short terms

t

with

market, Federal Reserve and Treas¬
recent and possible near future reactional
policies, and
outlook for interest rate rise. Notes recent
subsidence in sur¬

long-term funds

WE'RE OFF
—to

3

ury

upturn in business is

Cover

Atlantic Refining Co.—Ira-U.
Cbbleighi

in Government securities

two months "if demands for

a

G. Lee.____.___:

Trouble in the Government
Securities Market
—Roy L. Reierson

,

Department research study under
aegis of Vice-President Reierson, analyzes recent trouble

the

Cover

Outlook—Murray

,

Trust Economics

Page

Cautious Midst
Rising Market

-

Bankers Trust Company, New York
City

Bankers

Still

~A' Wilfred May

;

Economist

}

PHILADELPHIA

SALT LAKE CITY

3

Financial Chronicle

The Commercial and
4

.

.

Thursday, August 7, 1953

Atlantic, Refining Company
By I)R. IRA

U. COBLEIGH

Enterprise Economist
A progress

a
The

name
name

hncinpRs this
vear has
business
this year
has
especially scintillating.

nit
oil

been

not

well managed oil company, renowned
operations and now catching up on production.

report on a

refining

for its

Earnings of most of

producers have
past
dozen
months, im¬

of the

the integrated

in the

declined

,

pelled in part

pansion, and a
surplus of
crude, and in
part by the

Refining

this
year,
keeping
up with the
s

not,

5.3% .average
annual growth
rate

the

of

1946-56

;

/;

However so-so the

it

Gasoline

demand

now

certain

'

oil situation

has

improved

price increases have

posted in some sections of
Supplies have been
brought back into line what with
proration in Texas, and voluntary
import controls covering the ar¬
rival
to
our
shores of foreign
crude. Further, the uncertainties
in the Middle East have favor¬
been

the

can

increase

its

own

crude

Moreover,

Atlantic's ma¬

Middle Atlantic marketing
area (principally New York, New
Jersey and Pennsylvania) is ex¬
tremely competitive, and Atlantic'
has
found itself drawing away
excellent earnings from produc¬
tion to offset current losses from
marketing operations. The result
jor

is looking better.

has been,

and

to

duction.

Cobleifk

U.

ira

post

decade,

war

is

it

oil

for

200,000 B/D.
at Atlantic
be simply defined—

production to 75% or more of re¬
finery demand. At the end of 1957
AFI crude production was about
58% of refinery needs so it was
necessary to purchase over 40%
of the required crude.
This pur¬
chasing, at around $3 a barrel,
compared with a little over $1 a
barrel, the cost of. its own pro¬

that -de¬

faet

Philadelphia (145,000 B/D) and Atreco, outside Port
Arthur, Tex. (60,000 B/D) have a
combined capacity of 205,000 bar¬
rels a day. "' Actual runs have;
at

averaged a bit below
Now
the problem

by over ex¬

mand

suggests, in the refining end
business and its two large

refineries

country.

ably accented the positions of cer¬
tain
companies
deriving
their
crude mainly J'roifi the American
continents.
■
'
So with a background of mod¬

of

this

squeeze

was

that for the

of 1958 AFI net had
dropped to 26c a share against
$1.61 for the same 1957 quarter,
and dipped the stock to a 1958 low
first quarter

of 34.

Having thus painted the

darker

picture, it is only

trundle out some of the
about this interesting com¬

to

facts

is

way

160,000

about

now

acres

Coitney Takes Issue with
Babson's Views
International

Gold

on

issue with

Roger

gold, claims reported figures overestimate

stock and production. Denies Soviet-held gold
commodity price level, and insists

Russia's gold

constitutes threat to world

real

the

danger

or

77':7;7:3-[

shore, leased, acreage.

buying of

gold.

our

Russian

possibility of

by

constituted

is

.

,

*

.

/

v v

/

liquidity, and therefore
Editor, Commercial and Financial
Chronicle:
•
/ would hamper international trade.
The
question,-* however,.- may; be
In
the
article
by
Roger" W.
asked whether/the Russians have
Babson on "What About Gold and
the wherewithal to purchase gold
Gold Stocks?" published on July
in the free world. It appears that
3, Mr. Babson makes the. follow¬
during
the'--period
of massive
ing remarks:
conventional. - f earmament
the
"Although
Russians, have built a great; ca¬
over fifty perpacity for producing raw materi¬
cent
of the
als and some4- semi-finished prod¬
national

production

only is the oil

Not

on

taking

authority,

monetary

Babson's article

total of off¬

roughly 5% of all the

good but the natural gas is im¬
mediately attractive by virtue of
a
new
pipeline which has been
built to the offshore field to trans¬

port the gas to Tennessee Gas
Transmission Company under a

.

better

price reported at

contract

MCF.
important
offshore
in the wholly

than 21c per
Another

found

is

venture

free "world's

ly¬
the Gulf of Paria, a most
19,000 acre oil pasture

owned

ing in

annual

against gold, o Besides, should the
light to penetrate
or

recorded

probably

portecL' to be
producing five

drilling

hundred

has

AFI

Venezuela,

i

its
most., outstanding
successes.1 - Here, on a
25,000 acre area on Block No. 1,
AFI holds

wherein

worth

est, seven wells have already been
completed,
with
an
indicated
average daily production
in the
order of 5,400
barrels. Further
the

extensive,
1,400 feet thick, and
over 700 feet.

remarkably

are

of them

one

producing

pay-dirt

of

zones

the average,

Atlantic

Venezuela

assigned

been

has

a

on

Philip Cortney

weapon

against

could be

a

of

duction
worth

thai

be

possible if the price of gold were
not arbitrarily maintained by us
at a low purchasing power.
In
summary,
the real danger

prolonging

million

hundred

would

it

than

commodities

Russia has a pro?

$5

gold by selling: raw

of

quantity

gold

This

us.

present price the Russians
acquire
a
.much
larger

the

depression."

business
doubt

the

of reducing

could

real factor in breaking

commodity prices and
I

the " effect

purchasing power of gold to. that
of
the
dollar, and therefore at

eight
billion dollars' worth to use as a

our

succeed,

Asia

,

had

year;

a

<

they would become masters of
important sources of raw mate¬
rials badly/ needed
by the free
world.
Our monetary policy has

hand

S. import quota of

U.

mil¬

have

to

C

r e-

p w

dollars'

lion

45% inter¬

a

n

s

Southeast

conquer

Africa, Russia

on

fabulous

In

to

■Russians'

from

the mainland/.7
Lake Maracaibo.in

Venezuela

Such commodities could be
the' rest of the world

^

sold

of

gold comes
South

the island of

tween

ucts.

pro¬

duction

geological structure be¬
Trinidad '^nd

favorable

sands

;

side of the AFI
fair

leasing

shore

THE EDITOR:

LETTER TO

it started off¬
back in 1946,
AFI, as a 25% partner in the CATC
group,
acquired shrimp pasture
drillsites at very low cost. What
is more important, the group quite
swiftly located some lush oil so
that at Dec. 31, 1957, the AFI in¬
terest was equivalent to 23 net oil
and gas wells, with its share of
production
running to around
2,400 B/D of oil and 6^ MCF of
gas.
Further its net underwater
interest off Texas and Louisiana,
Because

picture.

i

.

(500)

to the free

world is that the -Rus¬

and that its gold
billion.
If it is so

sians may buy our gold and not
that they may sell us theirs. Gold
perceptible in the oil pany that give it a more forward 50,000 B/D. Indicated expansion stock .is $8
of
drilling
operations ? in
Lake large why did Russia ask for renders such an irreplaceable and
look today. Chief among these is
industry, we propose today to ex¬
Maracaibo
suggest
an
actual
daily
the
aggressive approach, and the
credit from the United States? >
amine swiftly a company that has
valuable service to the free world
production tprobably within two
But what puzzles me is the re¬ as a basis of its currency system
had a bit of rough going recently, good fortune Atlantic has had, in
the
location
and
development
of
years'
time
of
above
40,000
B/D
mark that the gold held by Russia that the advantages the Russians
but has now acquired an upward
for AFI account. This would create
could be a real factor in breaking might
market look — Atlantic Refining oil production and reserves.
get from ' a higher gold
a
dramatic addition to the AFI
For example, Atlantic was an
Co.
: < /. • 1- - v
commodity prices. Let's see: Rus¬ price are minor as compared with
total
production.
Other current sia can either sell gold to the the benefits the free world would
AFI gained its stature, as its early bird in the Gulf tidelands
explorations in search of oil are free world, or it can buy gold derive therefrom.
in Syria, Turkey, Guatamala and
from it.
If it should sell gold to
PHILIP CORTNEY
Cuba, plus an interest in a group the frbe world it would purchase
planning drillings in the Persian commodities and machinery, and President, Coty Inc.
a

year

est recovery

.

'•

Two years ago,

We

are

pleased to

announce

lias heroine associated witb our firm.

ent

COMPANY

iS.

properties go direct to AFI. These
amount to over 4,000 barrels a

pic¬

day, and of course this whole
ture would

brighten with any lilt¬

ing of Texas prorationing.
44 wall street

new york 5, n. y.

•

the

talked

more

AFI, the company posi¬
natural
gas
is moving

at

tion

is

oil

While
about

in

rapidly and gross income
from gas increased eight and oneahead

half times in

We take

has

of

as

manager

our

financial
well

been

1957

.

the

now

fording

Cyrus J. Lawrence & Sons

.AMERICAN STOCK EXCH ANGE

NEW YORK 6, N. Y.

Telephone: WOrth 2-2200




on

a

At

MEMBERS

August 1, 1958

over

what

a

4%

issue
1987

due

at 53.

sell

interest
of

Joins Hincks Biros.

(Special to The Financial Chronicle)

rate

since

the

long-term outlook
production is quite
exciting, and the cash position
excellent.
As a speculation over
the next three years, AFI should
be an interesting one to
watch
reserves,

for

and

and

4234

an

the

Hincks

"

Church Street.

With Shearson,

.

Hammill

Conn.—Robert
Heavisides is now with Shear-

MANCHESTER,
C.

Hammill & Co., 813 Main St.

son,

mayhap to own.

We

pleased to announce

are

the

opening of

Wm. II.

a

Direct Wire to

Tegtmeyer & Co.

is

CHICAGO

4*2%

convertible
at

110, af¬

and assuming

& Co.

Troster, Singer
NEW YORK

continu¬

.

.

\-.

.

...

.

CLEVELAND

HOUSTON

•

•

.DALLAS.

•

„

7

/Private JFires to
V

DETROIT '•

LOS ANGELES

•

PUTS BURGH

-

7

,

.

current

Even if the $2
were-not quite realized
operations, there would be
considerable logic in retaining the

from

HAVEN, Conn. —Lillian
joined
the staff of
Bros.
&
Co., Inc.,
157

has

increased

interesting call
10 points over

for the entire year.

figure

NEW

-

Cohen

current yield of a shade

lively stock

of

is

trend

earnings

definitely
improving, there are
over
70 barrels per share in oil

At

$2 dividend, the
yield on the common is 4.54%. The
dividend, was not earned in the
first quarter but should be earned

ance

(Special to The Financial Chronicle)

happen

These deben¬

NYSE

"1

if Russia decided
CHICAGO, 111.—Harry A. Carl¬
to buy gold from the free world.
son and David H. Braun are now
This could be a calamity.
It is connected with Francis I. duPont
easy to show that a loss of gold &
Co., 208 South La Salle Street.
by the free world is deflationary,
and would play havoc with inter-

would

the current market.

FOUNDED 1804

115 BROADWAY

to.

investor

common

tures

•

at AFI

million

$100

into

STOCK EXCHANGE

program

attended

,■

.

Two With F. I. du Pont

examine

rather

,

year

debentures

.NEW YORK

would

' ;

.

1958.

considerable

INVESTMENT RESEARCH DEPARTMENT

I

3
*;

Would

Calamitous

end net working
capital stood at above $100 mil¬
lion. Capitalization is $182 million
in long-term debt, $35 million in
preferred and 8,900,000 shares of
common
now selling at 42 34.
Of

Mr. John j. dunphy
us

Be

.

decade.

expected to exceed $21 mil¬
for

the

has become associated with

the 1948-57

It is

lion

The

pleasure in announcing that

Aug. 4, 1958 '

oil from all

wells drilled on the Houston

new

Members I\eiv York Stork Exchange

and

production

Russia's Gold Buying

City

New York

prices would go up and not down.

the Houston Oil

properties were purchased under
a
production payment arrange¬
ment whereby 85% of oil and gas
sales are applied to reduction of
the original payment contract of
$125 million. This "nut" is being
rubbed away rapidly and, assum¬
ing present production payouts,
should be fully paid off by the end
of 1965. Meanwhile, 15% of pres¬

that

Walter k. oilman

SIIIKI.DS

Iran.

from

offshore

Gulf

ST. LOUIS

•
•

7

GRAND RAPIDS

LYNCHBURG
SAN FRANCISCO

■

..

.

•

•

•

HARTJORI*

PHILADELPHIA
SPARTANBURG

Volume

180

Number

5766

.

.

.

The Commercial and

Financial Chronicle

(501)

Steel

The

Electric Output

State of Trade

Trade

Food Price

and

Chairman

Industry

Based

It is

construction

such

first hand

on

embargo may ironically provide Chinese
benefit; and suggests exporters "shake
themselves loose" about trading with Red China and
that

industries, both public and private, but has also made

One factor casting

its shadow

formation
in China

visit.

It

attempt to report in¬

an

life

on

as

I

and
them

saw

current

business

trend

out the belief that inventories

for

the

most

part

have about touched the bottom of

to

the .current employment situation, recalls of

,

periods,]

The

<

second

the

decline

lowest

put

total

lowest total

so

the

total

of continuing

this year.
far in 1958 at
for

The week

ber of
In

the

;

ask

J

with

on new claims is always a week ahead of the one
on
continuing claims.
I
Thirty-two states reported declines in continuing claims, the
department declared, with New York's insured unemployment
dropping by 28,400.
Total insured unemployment amounted to
6.1% of the labor force in the week ended July 19, compared
with 6.2% the previous week and 3.2% in the corresponding
week of 1957, when there were 1,293,200 workers drawing com¬

oration
ate

t

: *

The

of

:

and

own

tough

financial

sledding

the months ahead,

in

even

returned the

a

&

sort

of

Son

or

we

same

had good

hotel

was

told

gone.

I

rats

clock.

have

saw one

force

and

case

in

the

of human

irrigation

All work

About

on

pleased

announce

to

Homer J.

No

"Intourist"

Guidance

expense,

accord, at

my

ex¬

one mos¬

accomplished.

physical

assistance

.

such

and

they showed

things

from

accommoda¬

as

when

1.

high

developed

*.■

these

pictures

something of the
atmosphere of the drama.

ercise be

Stupendous Progress

old,

over

stop and physical

ex¬

indulged in—young and
and under weight alike.

The

change

modernization

est

reluctance

to

answer

ques¬

seen

to

believed.

be

It's

She

truly

conducted

34
are

pleased to

announce

the opening of

Direct Wire to

that

CHICAGO

Co.
G. A. Saxton & Co., Inc.

principal Exchanges

NEW

YORK

NEW YORK 5, N. Y.

V

-a

7

7

v

r

✓

* v

Dallas, Philadelphia, St. Louis and San Francisco

.

?

* W

us

to

Continued

The effect is almost

stupendous.

1958




on

will have caught

work must

'

Private Wire Connections to
AUGUST

stood

interest,

not the slight¬

Members of the New York Stock Exchange

•

I

growth in industry, the i saw few in the former category.
in living standards, the Many people wear gauze masks as
of everything and a
protection
against" dirt
and
tions and travel facilities.
From
anything, the feats of human ef¬ fumes. En route from Shanghai
first to last their courtesy, assist¬
fort and the collossal impact of to Canton by air we
stopped at an
ance, kindness and general good
human labor are not within our airstop for lunch.
We were met
humor
under
all * circumstances
at
the
plane
by a girl wearing a
were of
infinite help. Their ex¬ power to describe and still give a
white gauze mask, in white skirt
planations of their system were worthwhile picture of the scene.
and long white smock, spotless.
All I can say is that it must be
naturally of the highest
ing

INCORPORATED

20 BROAD STREET

work

photographs of the scene, a shift
of 30,000 toiling people, and
hope

Vice President and Director

and other

the

ground and looked down upon
this vast human ant hill. i took

firm as a

Blair

of

as

was un¬

circumstances, age, health, and
With little else
than their bare hands, picks, and
shovels, this colossal task has been

astonishingly gratifying.

and received inval¬

O'Connell

has joined our

described

was

half

physique permit.

GLORE, FORGAN & CO.
Mr.

clay and

The
almost
fanatical
drive
toward hygiene and physical cul¬
ness of effort.
From their point of ture by the people is a
study in
view the results must have been itself.: At 10 a.m. and 4
p.m. all

a

are

saw
con¬

as

desire to

We

We

J

provided by the army,
by citizens from every

with

page

labor.

and flood

was

rest

price boost.
The metalworking magazine recalled that since Jan. 1, steel

Continued

an

walk of life who go and live and
work at the site for
days or weeks

on

case

been

fly and

example,

"voluntary".—certainly it

bubonic plague has

so

one

gravel,' and
100,000 people were work¬
in three shifts around the

ing

day and looked

than is the

matter of hours

terminated

head.

core, the upstream side is
the other is earth,

need.
I

my

wide at the base and about 25 feet
wide at the top. It has a "concrete

accom¬

done

was

new

paid.

continent;
clothes
pressing
often and prompt—dry clean¬

of

over

exceptional' one perhaps, of the
inexorable effect of human effort

and

our

a

is

stone.

war

worn

is

long, about 95 feet high, 555 feet

un¬

less

ing in

how other

Bank of China officials in arrang¬

justify the average price boost of ahout $4.50 per ton. One of
their biggest weapons is the fact that at least five companies
were in the red during the first six months of the year, that is,
before the full impact of higher steel wages hit; them on July 1.
The earnings of even the major steel firms dropped drastically
from last year.
'
As it is, continued this trade journal, the price hike was "too •
little and too late" in the thinking of most steel firms. It came
30 to 35 days after the rise in employment costs and was less
than half what the majority of companies claim they need to
maintain an adequate profit position.
As a result, many firms
the

elab¬

Quest of knowl¬
see

com¬

more

uable

Despite the furor in- Washington, the steel price rise will
''The Iron Age," national metalworking weekly declared
Wednesday of this week.
•.;• -•/:*%"/ 'r '

face

visit?"

as

deaths into

Ming Tombs Vali
ley.
It was practically finished
and had taken only 140
days to
complete.
It is over 2,000 feet

glimpses

saw

operating

immaculately kept
modation; laundry

was

I went of my own

total of 77,900 in the week ended July 26.

-It pointed out that steel firms are well armed with evidence to

from

main cities

per annum or

Take

.

"

'

stick,

I

a

I

100

trol dam in the

Canton.

would

the

600,000,000 people

J shall give but

the

quito and no sparrows in the
see how
business, cities. National
campaigns were
particularly how bank¬
organized to get rid of these pests,
ing operations, are conducted —
and I believe were used as a test
were
the v main
urges
that
to see how; successful or other¬
prompted me to go, plus of course
wise the authorities could be in
a
fairly healthy measure of nat¬
organizing the populace in single¬
ural curiosity.
•—the

claiming additional benefits under the special Federal pro¬
gram rose by 175,300 to a total of 510,400 in the week ended July
19. The program covers workers who have exhausted their bene¬
fits under the regular -Federal-state program.
New claims for

on

the

which,

people live and have their being

ers

a

any

first

your

there

in terms

I

"Intourist"

Cook

Express

or

the population of the world lives
iir Chinq and in a score
pf years
or less it will be nearer
half the
world's population. How one can
fail to ^recognize" this colossal

The cost of living is unbeliev¬
ably low, probably about
to Mi
of ours in many directions.
In

thereon, might cre¬
wrong impression of

edge—the desire to

down 1,000 from the previous week."
The Labor Department also stated that the number of work¬

49,500 to

I
he

question you would
probably ask is, "Why did you go
to China, what was the purpose

was

these declined

/;

nose.

in

in

even

done

we
were
freely
already a labor
shortage. Twenty-five per cent of

der government auspices.

built

quite

I

as

Thomas

American

from

an

respects

functioning,;

Chinese

the whole.

Declines in new claims were revealed in 36 states, with
Missouri, Pennsylania and New York showing the largest reduc¬
tions. In the same week, a total of 36,800 workers exhausted their
benefits in the eight large states which report such data weekly.
This

context

was

a

speed—and

told

auspices. Ac¬

one

that

"Intourist,"

it

of

by the

but

saw

are

minute.

per

gun

-

Govern¬
in
effect

a

in

consideration, and births must be
at something
resembling machine

put in the

which

around

and

many

pare

d

n

that

passage
James Muir

report

,

a

lifting

num- v

like

pensation.

all

conclu¬

refrain

claims by 32,500 to 318,700 in the week ended July 26.
week
last year, new claims totaled 231,400.
The

new

tually, I
official
In

is

one

"Intourist,"

one

been
years

.

not under such

was

he

particularly

claims at 2,555,300,
had
"

leads

it

any

ended June 28

2,551,700.

any¬

that

sions—

.

The return of workers from vacations also reduced the

of

Agency,

,

the week ended July 19, the United States Department of Labor
disclosed.
- '.
;

China

ment

through
be¬
fore
drawing

.

workers to plants reopening after vacation
cut the num¬
ber of workers drawing unemployment compensation by 72,100 in

.

38

with queries
read
that in;

me

have

hands

enough
it, I

read

to

I

any¬

read

ask

return.

visits

inter¬

ested

However, in laying plans for the future, the consumer
is the key in a return to a more stable economy and upon him
will depend the speed of our recovery.
' ^
/■/;■»•'
V
respect to

is

one

the barrel.

With

short

a

disprove
thing. If

bear

to

seems

on

in

is not meant to prove or

,

The

tions, and plied

conditions

not

4,000

There

scene

This is

sees

but, if he is

years

increasing 20,000,000

seizing legitimate trading opportunities.

the

bright clouds is the
automotive industry, which is presently marking time. Change¬
over
to new models remains to be accomplished and will take
several weeks for most manufacturers. Then too, many 1957 models
in dealers' hands remain to be disposed
of, not to lose sight of a
possible strike over the settlement of a union contract.
; ."i"
over

he

accomplished

in the land—the net
population is

Canadian Government penalize those corporations derelict in

show of optimism in this quarter.

10

had

years.

made; be-

itself felt in rayon and cotton goods and other lines as well. Prices
of cotton goods have taken on a stronger tone
giving cause for
some

what

lieves strategic goods
with a great long-run

the steel and

as

Canada

observations of the trade opportunities
existing for Canada.
Confesses bewilderment at "stupendous"
progress

worthy of note that the improvement is not confined to
economy,

of

than

when

one

been

thinking person, to appal him and
dumbfound him when he realizes

observation, Canadian banker offers his
impression of an awakening Red China, her people and their
accomplishments during the past decade, as he saw them
without being in the hands of
"Intourist," together with some

Business Failures

The

few important segments of our

less

has

previous

Auto Production

long awaited upturn in the business trend has become
more certain the past few weeks but the
signs appear to indicate
that the pace will not be last, but more or less
gradual in nature.
a

President, The Royal Bank
Montreal, Canada

Index

J
■

and

Commodity Price Index

bewilder

what

By JAMES MUIR

Carloadings
Retail

to

Impressions of China

Production

5

t

*

A

f

the

on

dining

page

29

Financial Chronicle

The Commercial and

6

'

(502)

'

Reinvestment Depreciation—

ol

point

view,

be able to

should

penses,

re-

certified public

leading

'

.

hands

prepared

your
to show the

insufficient

depreciation

was

effect of

r,

v

Peloubet & Co., New York City

of

amount and length of life of the
1S PaymS out over 100 ,c
r r
assets, involved, is the consump- his income m taxes, AnAhe second-v
Government may take its share of. lion-of long-term property; maco^um" a, corporationdQmg the
taxes,
.Vr ;
chinery, equipment and buildings. samc. business,-as the individual ,
Expressed in this way, every- Here the costs to be extinguished IW^PP1! Pays: a nominal tax of
over
ic
will say—"Why, that is exone
Gr
to be prorated over producraVc?1 an. a^ua .'
70%, while, in the third column,
actly what happens".. Generally lion,
taken to be

mcnt, and to have a reasonable
.margin for profit from which the

a modern
billions of tax-

accountant proposes

system of "reinvestment depreciation" to place
blocked dollars into new plants and equipment

■■•

■

tL

By MAURICE E. PELOUBET, C. P. A.*

A

Thursday, August 7, 1958

.

statement which you have in

of

applications

.

.

.

wages,,salaries, payments on income and on the nominal ? ',
cover
from the proceeds of its for services, taxes and the like are and actual tax rates which are"'
sZs?
cost o/ materials and Paid
for , Currently ; in current paid.; In m^fi^trnase, an Individ- J
; iial proprietor apparently pays the
operating costs, as well as enough dollars,
The other area, which may be statutory rate on his income; but ^
to
maintain
its
investment
in
buildings, machinery
and/equipuuHutiiga,j- auu.
vi,^large or sihall, according to the: k.ecausq jot• jmuffici^nt^depreemA :>*.

nrinni7atmn

What It Is and What It Does
Partner, Pogson,

.

Other, current, ex-

enterprise.

manufacturing

a

the

of

•

which V5 suita,?'e for almo?t any

economic

and

business

a

one

some

Recovering Costs
From

■

•

-

and help speed

r

*

Mr. Peloubet would permit deduction of
difference between the value of retired property in current

business upturn.

a

the

dollars, to help

dollars and its cost in historical, original

,

-

Walter

Lippmann in

"There

recent

a

article said:

'

the

sion.

.

at least two reasons

are

for thinking that we may
at the bottom
of

not be

reces¬

For one,

there

is

is

of

outdated

no

present de¬
cline, of what
businessmen

branches

equip¬

ment.

Unless,
however, there
reasonably

however
nowevei,

k
is,

important
of

tion

fart

and

return,

tax

1

ma¬

or

•

capital

good
prospect of a recovery without
compensating outlays of
public
capital
in
defense
and
public
there

>

is

no

works and subsidized housing and

1955

and

other facilities."

caught

^

,

reason was similar:
The falling off in the demand for
what might be called household

>; His second

not

in

1958,;

thai

compared

as *

heavy

years,

1956, is because we

up

need

statements

made

are

of
are

and

as

,

J

:

./J.

f

.

nart of

thp posts

<
-

There is something here for all • <

entitled to receive the fi- *-

evei\ls

nancial

of

statements

enter-

an

Prjse is certainly entitled to some*

even

information
which .will enable
him to see the results of the op-

rnnr_n1.

-

,cPresenU

deration of the business

on a cur-.' ■

:
j The* propose d reinvestment;
method, for tax purposes docs not
Depreciation Based on Current ;
provide; each year for depreciu- . •
•
Values
f1011 on a current value basis, but
Walter Lippmann says "Unless/ ;
mthcr provides lor this in arrears there is a reasonably prompt and
as and when property is retired substantial rise in private capital:
:j?n€i reinvestment occurs. As 1 expenditure, there is no good ,■
|,aYf
explained, this seems prospect of a recovery - without /•
10 Jjf the best and most pmctical compensatjng outlays of ..public method.1 lor , tax purposes. ... Ac- capital' in defense-? and public "V
: 90Ll?ting methods lor recognizing.- works and subsidized housing and Ir¬
'

■

.

basis.

- rent

,

.

:.r y":

•

,

the value ol the

me decline

facilities."

0qler

dollar'-should do so cuiiently le—

.-

and*:'

best

The

,.

rmififpsf \xr^\r fn pimnnradp nHvnfp;"5

j

v.,

.

fill efldy^piovided foi% i -1
-

depreciation allowances which are

,

;.r

..

the funds nec-: tus

for

the appara-

decline,

essary^merely to, keep him even:; Index- numbers, is one which is
tn moinfain hie IBVPSfmPln
in
nimmrhnrlv

fhof

niminov

ic

*

The

years aso

mere

annountement

- of the passage of legislation

W Axiroiroi*

would

25:'

values of 10, 15. 20 or

on

realistic

permit

-

values'/ rather'

current

0n

than

the last

in

this

measuring

j3ascd

.

Everyone knows that the dollar

lias declined greatly
20 years o? more, and

long-lived machinery
Im business

of

portion

•

lax purposes, it,, po.ul.4 he applied;
jo the current-value depreciation

the taxpayer

by the Government. This makes.
the taxpayer who uses a high pro-

general

state¬
do not believe them.
The primary cause of the fail¬
It
is
undoubtedly
true
that
indi¬
ure
of
the
businessman
or
the
organizations
may
have
citizen
to
invest in
plant and vidual
at a
state
equipment or durable goods is temporarily arrived
where further capital investment
simple. It is the lack of available
is unwarranted, but these are the
money. It is not because all man¬
capital goods.

w

.

-

wneie depreci

accountants to think about. Who-:

and

the necessity of this base with the

and equip-

machinery

oil capacity and we do and
equipment ' in
as much new
and im-' chronically short of

These

or

•

-?

dPnrPH-

dlshr°P0111011 ate Parl 01 tne costs-> i

—

proved machinery now as we did
then.

Hisnronortionate

of

base from which

convenience

the

'

wh

anH

ation is a substantial* but not a

„

al-

seems

•' u

„alot?

-

,

mcnt are taken from

rather

a

it

downward,

*

statements

tal investment far the latter part of
the

changes

' fa ™at * " 'a
.tI0" °? cullent lac]s-

most

buildings,

and

,

value

-

10% and;

a good income,

nn

It is, however, wrong to

confuse

less of its current cost.

the reason for the decline in capi¬

with

makes

hast

of

not

are

'•

...

^

basis for

the

of

,nvariably

to start.

working

made in the last few months

1957

;.

•'
been

-

,

have

There

in

true

metal

ind

th

must have

we

could do better. In

be

the

ai;
t

represents

depreciation

all,
the
one-hqlf

"

examples

*

HaI lore

1

no

is

dollars

the

?'

«

dollar

wages are paid currently. By the
use of LIFO we are
permitted to

ac¬

obsolete

nrerAriiio

These

,

Cpntrived
or farfetched but show ;;
the results of a business which

penods into current dollars. Every

account or a
Most,, expenses land

v

Vtoemc'

•

income

an

iKS^n?^boks
l)ooks

translating

consirut

108%.

•,....

.

.

must fust keep oui

v e

without this there

between

me

in

■

construe-*

the

in

tact

father
,rauier

one
one

discrepancy

'inH

iiinnrv

theoiy

job which some

to

of

examples.

Maurice Peloubet

and

substantial rise in private

this

know

52% and; Un, actual tax. of qvfer

f hnr-

Tbpre
Ihere

i an
enterprise where the proportion of long-lived machinery
and equipment to other assets is
industry, in many sections of the large, the fact that depreciation
textile industry, and in the ce¬ is
grossly^ insufficient- and that
ment, pulp and paper, and print¬ favps must be naid on the iming industries, to give only a few

I

invest in plant

expenditure,

personal

and
a

;

basis.

very

chinery doing

w.
a a vc decline in sales makes the
corporation pay a nominal: tax of

tiol

.

.

r

with

think

other equipment

a

,

The fact that these costs are althe managers, I lowed only on the basis of the
few manufac¬ original dollar investment means
turing organizations where there that on machinery of any age at

soon

prompt

of

because

or

stead of the

and

..

.„

which would do the same
charge current material costs to
better or cheaper or both, current sales, but the area in
there would, I think, be very few which current costs cannot be ap
U
A
t
v
♦
uv thn
negative answers.
Certainly in plied
to current sales is in the
the industries with which I am charge to Income for the use, wear
familiar, either because some and tear and obsolescence of mamembers of the industry are cli¬ chinery and equipment.
< "

quaintance

rise, in-

a

.

.

chine

can

that

there will

is

quire that all costs should be .ap*
plied currently to revenues from
sales, and most income accounts
are
ostensibly prepared on that

job

ents

no

good reason to
suppose

be

accepted accounting principles re-

pensate for dollar's purchasing value decline, providing an "
equivalent investment is made in depreciable property within
two years of the date of retirement. The amount of the reinvestment depreciation written off in the first year would be
deducted from the depreciable basis of the new property ac- '
quired. Claims tax loss would be offset because required capi¬
tal spending, which otherwise may not have occurred, would
generate income taxes, more jobs and greater output—not pro¬
duced by current depreciation system.

.

j,|ie" dollars expended for the propCrty; no matter when they were

{are^generally

com¬

^

which

?

deprecia-

tion all„wan<-es based on current
valllps wf)llld- rponimate

rnnstruc-i'

tion

programs?
°
u

-

and

.

-

replacement
...

.

.

_

.

general

as

ments I just

ufacturing plants have such mod¬
ern

efficient

and

machinery and

equipment that they need nothing
further.

If

every

in

man

manufacturing

clients if they

any

that

was

that

there

*An

the

was

address

60th

Jersey

obsolete,

machinery
the

sense

other

ma-

Mr. Peloubet- before
Meeting of the New
of Certified Public Ac¬

by

Annual

Society

countants

in

some

held

at

Atlantic

these

be

this tained

audience asked his

had

exceptions.
The real reason for
the falling off in capital invest¬
ment is lack of funds, whether

City, N. J.

from
stock.

all

through

profits-:and
borrowings

or

the

are

a

L

generally

Mi

rt

this

-

iL

«

>3

r.

methods

counting

nicritafy
statement, or in a footnote.

accepted

in

is

aeinsufficient.

ii-voii-f-fioi Anf

accountants,

concern

,

.

particularly when we

i

,

.

say^at'Y11"

L.

.

nor

reason

operator

of

that

know

which

he

he

immediately: >/.

for ^bis

an

is

that

enterprise

could

already

the

would

spend funds

in

had

hand,?

which would , uvutiiv^
otherwise liavc
have to
Stockholder Information
w
?*:?'• The'-.;Morckh'61der '-is entitled to - be paid out in taxes, and he could
know by some method the pros-.plan for the future ml the basis

of

obso¬

large surplus of

undertaken

•

noTieW^d" a7r^M

up-to-

or

be

rpjle

or

sale

completely

machinery,

because of

present
Does

practically

with ho 1 obsolete

lescent

.

re¬

earnings

It is not because

plants

date,

obtained

nessman'6 interest in the fact that tion. yarious methods have been
depreciation, calculated uncler Suggested for showing this; in the
present tax methods and under income account itself, in a supple-

is it

:?rSenteH

nn

the

hasis

of

nr-

Dast his

of lone

to icai costs with

an

sales realized in

pro¬

re-

;

£or:tax
purposes. However while later be described as reinvestment
110 mandate
the

ductive capacity.

a

'lo a .method for recognizing the cession, • there ; is no:-doubt that
decline in the value of the dollar legislation providing for what wil}

effects

Jji

order3^to^repare^^e^n^

Active

advocated, some method should be posed.
V >
,-U..
adopted in order to show stock- " This is true because it would :
•foot
mafpriak
consumed
and
holders and proprietors what their not, as in the case of a cut m
?h?otlU ?s £^the^^area^Tf what Profits actually are on a current personal taxes, benefit only those
we might call the consumption of
basis rather than on the present receiving an income but would

Trading Markets

come

account.

fixed

or

One of thesis the

mixed basis of current dollars for

capital assets.

one

Fluctuating and Fixed Costs

Maintained in all

Where material or other inven¬

tory costs fluctuate, a
!

PHILADELPHIA

other section.

This

nrmlvinfT

sales

mrrpnt

rosk

current

to

Ttes is tte UFO

Sd

can

be

provide jobs for those now unemployed.
It is not necessary, 1 as

the in the case of increased defense
c
spending,- to allow for the long
really serious where lead-time, generally at least six

past J historical

for

dollars

; /

:/v:

::

.

depreciable

assets

form

where 'the lives are long.

BANK STOCKS

The producing
stage.
The
reinvest-'
ment
method
will
act
.

quicker

than

A Continuing Interest in
Phila.

Stndfor comparison of 12 largest Philadelphia\Banks

Transp. Co. 3-6's,' 2039

V

Fischer & Porter Inc.

Pocono Hotels Units

1

Buck Hill Falls Co.

StoufFer

»

of the interest
rate because time is required here
to make new borrowings and to
enter

Reading Co. 3V8s, 1995

STROUD & COMPANY
INCORPORATED

PITTSBURGH




ALLENTOWN

& Co.

:•

Corp.

-• -v,

Pennsylvania Bldg., Philadelphia
LANCASTER

Teletype
PH 375

N. Y. Phone
COrtlandt 7-6814

Keyes Fibre Co.,
*

•

:•

-

Established

1914

1529 Walnut Street
115

fori which

Fur-*
uncertainty,
of-a personal tax

as

in

the

as

case

no

to whether the funds will

be

'

BOENNING & CO.
!

the projects

spent or saved, or applied to
extinction of existing
debt;
Under the
reinvestment method

the

-}X'

Members Phila.-Bait. Stock Exchange

PHILADELPHIA 9
NEW YORK

Samuel K. Phillips

I

into

thermore, there is

cut,
•

adjustments

the borrowings were made.

Grinnell Corp,

..

-

,

a months or more, between letting
large proportion of the total and-a government - contract and the

accepter method 'exists''for the

and
I

recognized

section of the costs and long-

Brbadway

New York 6, N.
CO 7-1200

Y.

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

the

funds

must

be

spent quickly

for the

taxpayer to get any bene'fit. Generally, they will be spent
in accordance with a plan or p.ro-t
gram

already in effect/Most
Continued

on

man-

page

32

Volume

188

Number

57G6

The Commercial and Financial Chronicle

(503)
fact
we

For Estimated $12 Billion Deficit
Secretary of the Treasury

:

•

r.

• •

,i

Country's fiscal chief submits testimony in support of the

+/'•

President's request for legislation
limit ceiling to $285 billion and

|

'

;
!

w

to

operating balance and cash position, and public debt, on
monthly and bi-weekly basis.
V:

to

increase

debt

limit

the
to

regular statutory

$285

billion

"~'

-

and

estimates

difficulty

of

making

to' this far ahead.

pi>ovidel

They

/<-

estimates, and

an

as

£F®.ase^of
$3.
billion to ex-,

•

I"

at

roftft

+J®

increase

(Cincinnati,

Ohio)

:

.

Municipal Bond Dealers Group

EVENTS

the

end

of

are

the

fiscal

annual

outing

—

cocktail <aoA

dinner party Thursday at Qtteen

City Club; field day Friday at
Maketewah Country Club,
Sept. 26, 1958
.Bond

(Cleveland, Ohio)

still substantial

Club

of

Cleveland

fall

outing at the Cleveland Country

lumbine Country Club.'

year

Club.

termine

yond

our

that

to de¬
of action be¬

course

date

in

year

The

figures

a

41*

V*.

ments

in

tion..

These

I

am

forth
and

the

to

recent

are

.1

•

T>

J

developments

appending

sociation

7do,
for

need
take

i

•

"TV

annual

-

"Fling

try Club.

public

-

Ding*"

at the Mauh-Nah-Tee-See Coun¬

care

debt

-

Sept. 29-Oct. 3, 1958

forecast of cash balances

our

C

J

/x

Rockford Securities Dealers As¬

table setting

a

1958 (Rockford, 111.)

develop-

!•'

J

*

international situa¬

outstanding

the

using today
do.notdnclude any changes in es¬
timated expenditures which could
we

Awln

due

however, point up the
being in a position to
of contingencies.

the

matter of the permanent limit con
be reviewed.

best

such, provide

again before

light of
developments. When budget sur¬
pluses are again in prospect, the

,

our

eventuate

We will have" to

revenues.

*

■

/

(Colorado

Springs, Colo.)

for

t

National Security Traders Asso¬

period

ending June 30, 1959,
including actual figures for the
period from January to June, 1958.

ciation

Annual

Convention

at

the Broadmoor.

.

Forecast of Cash Position and
Debt, Fiscal Year 1959

..

fiscal situation for

our

the current

present time

the. end of the fiscal

a

This substantial change in the
outlook of

COMING

W$

reasonable approach to consideratemporary in-Ition of the debt limits
V -fy
,

the

look at the situation

^

d-d i ti on al

a

the

tion of

predictions
are

permanently

at

because there

In giving
recognize the

we

course

is

Sept. 18-19, 1958

case.

the:only

seasonal fluctuations in the collec¬

$67 billion for receipts.
these

that

appear

sound

before

.

4.1 am appearing in support of the
President's request for legislation

situation

•

additional $3 billion

«.

would

to

the

_

—

provide temporarily an
leeway. Anticipates $12 billion deficit in
fiscal year ending June
1959; refers to wide margin of error
in; estimating last fiscal year's deficit
amounting to about
$2.5 billion; and provides two tables forecasting estimated

•

r

to increase statutory debt

In

were.

face, that is not the

In Investment Field
statutory limit to $285 billion.- In
addition, a further temporary in¬
crease
of $3
billion will afford
us a margin to take care of con¬
Aug. 21-22, 1958 (Denver, Colo.)
tingencies. Furthermore, a regu¬
Bond Club of Denver Rocky
lar^ limit
of
$285
billion
may
Mountain Group IBA 24th an¬
present" problems to the Treasury
nual summer frolic at the Co¬

By HON. ROBERT B. ANDERSON*

i

they
now

It

-

7

(in billions)

:

year makes it impera-

July

About-tiye1 thatwe again review the
I-statutory, debt limit.We can no

Change.in general fund balance......
General fund balance at beginning."..

'? q^'r

t1' '' .' longer operate with a $5 billion
^
£■•.5 P",:temporary- extension of the $275.:
-P?a r ed__bef ore billion limit because4 we cannot);
e
look forward to a debt of $275 ■
Tw^ a
^ ^ ^ billion or less on June 30,1959. ;

Sub-total

1958

Aug.

Sept.

-4.7

+1.2

—1.6

9.7

5.0

6.2

;

'

Oct.

Nov.

+0.1

'

-1.3-

4.6

4.7

.

Jan.

Dec.

July-Dec.

March

April

May

June

Total

+1.1

-5.2

+1.7

—1.0

—1.7

+0.2

+1.4

-0.2

—4.8

3.4

9.7

4.5

6.2

5.2

3.5

3.7

5.1

9.7

<4.9

4.9

4.2

4.2

283.9

286.1

276.3

+2.2

-2.5

+7 3

1959

Feb.

1

6.2

*

4.6

4.7

3.4

4.5

4.3

5.6

•

4.0

4.1

2.8

3.9

3.9

5.5

4.6

2.9

3.0

276.3

275.9

278.8

276.4

280.2

280.0

276.3

282.2

285.2

284.4

280.8

-0.4

+2.9

'-2.4

-+3.8

-0.2

+2.2

+5.9

+3.0

-0.8

-3.6

+3.1

275.9

278.8

276.4

' 280.2

280.0

282.2

282.2

V

285.2

284.4

280.8

283.9

286.1 "t

283.6

283.6

275.6

278.5

276.1

279.9

279.7

281.9

281.9

'

284.9

284.1

280.5

283.6

285.8

283.3

283.3

General fund balance at end

5.0

Oper. cash balance at end (incl. gold)*

:

4.5

-

6.2

.

5.2

•

3.5

>

;

.3.7

•

'

5.1

"

-

w

Means Com;The

fmittee to

»;

^

-

r

nro

Pro

4

>
a

11
the

sShif+
The

bill

proved

vides

a

$275

Feb.

June 30,

enaeted -and

ap-t

26, 1958, and

pro-.

to

$280

the!

*

-

.

.

on

following

maintained

at

a

There

Even

for

"

*

with

still

the

$275

bud-

be

billion

j

.

made

our

ticipated
>

by

,

recommendation

deficit

a

which

for

the

an-

fiscal

ending June 30, 1958, of $388
million, and a surplus for the fiscal

4

/

on

year

ending June 30, 1959, of
$466 million. At that time,

year

about

it was particularly difficult to estimate the extent of the
change in
economic conditions. The' impact
Of the recession

its, which

on

corporate prof-

such

are

important

an

of revenue, and
of the duration of the
source

the extent

interruption

'

-

4

-

months
into
the
future.'•

r:

This

lion,

This

about

the

of $72.4

deficit

deficit

because

amounted

against

mates

budget

a

billion.

revenues

Sees $12

to

was

net

our

$69.1

January

balance,

$12

based

billion.

on

ton,

D.

includes

2.8

4.2

3.8

2.2

283.7

283.7

284.8

285.5

only Treasury accounts In Federal Reserve Banks (collected), Treasury Tax and

—

.

r

.

.

.

_

.

'

,

'

,'r4

•

and

Means

H.

c., July 30,

R.

to

This
of

and

Committee

on

13581, Washing-

1958.

is

•

...

not

is

and

under

no

or

circumstances
as

a

be

to

solicitation of

•

*•

•

construed

an

as

•

an

-

offerinf

offer to buy any

August 1, 1958

Billups Eastern Petroleum Company
-

•;

,

retire

public debt

tioh issues)

50,000 Shares

.

*

.

¥.

;

•

■

(

Par Value $1 per Share)

amounted

to'$4,-650,J957,. while in

balance

July,

c

Common Stock

obligations,

made

it

(Offered in Units consisting of $1,000 Principal Amount
of Debentures and 20 Shares Common Stock)

Price $1,000. per

even

.

600,000 Shares

.

Common Stock
(Par Value $1 per

cash financing

though

Unit

necessary

for the Treasury to borrow $3 billion on July 3, 1957, to cover the

this

f

7% Debentures, due July 1, 1993

000,000 in June,
June, 1958 there were no maturing" tax anticipation issues, and
outstanding marketable public
debt obligations increased about
$650,000,000. However, the lower

1957

"•

•*

$2,500,000

These reductions (Of tax anticipa-

Price $5 per

expendi-

Share)

Share

Copies ot the Prospectus may be obtained in

billion in early August for cash
requirements of the next couple

the several underwriters

any

State only from such of

registered dealers in securities in such State.

as are

months,
Today's
The

the

estimates




im

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

amounted rto $8,628,000,about $4 billion- higher

Changed

Situation

The

statutory debt limit should

be amended to

by -Mr. Anderson before the
a«d

13580

r

fact that a large part of the tax
collections in that month was used

bil-

entering the current

$79 billion for expenditures

H. R.

it

ot these securities for sale

in Federal
Reserve Banks in available funds
and. in Treasury tax and loan ac-

billion.

about

^""^Statement

as

-(July 30, 1958.)

3.4
283.7

on

current

give recognition to

outlook

for

the

year.

the period since 1954,
fiscal year ending June 30,
1959, while the Treasury has been opwith an anticipated
budget sur- erating under temporary .increases
plus of $466 million, we are now in the public debt limit, and pubfaced
with an estimated budget lie debt obligations were issued
is

7

,

meet the day-to-day expenditures

esti¬

This Fiscal Year

of

Balance

Fund

5.7
285.1

....

of

Billion Deficit for

Instead of

amount

2.9
282.0

.

*

deficit

3.0

279.6

Fund.

advertisement
ot any

tures are expected to exceed re$388 million for the year ended ceiPts
$4-7 billion during theJune 30, we incurred a deficit of month.
We are borrowing $3.5
brought

5.5
280.2

NEW ISSUES

not have to do any

18

of

;

as

extending

$2.8

2.2
276.3

1957.

heavy outlays during July last
year. With the higher balances on
June 30, 1958, the Treasury did

Instead

5.2

277.8

gross

in the growth of personal income
were hard to foresee for a
period

£

gold In General

[ than on June 30, 1957. The lower
balance a year ago was due to the

/•

Estimates Erred

The budget' estimates

we

30,

the "

.

general vfund

; 000, .or
.

$2.1 Billion
—

6.0
275.7

June 30,-1958, amounted to about

most: counts)

limit

'
.

>

'

balance differs from the General
and

-

-

-

large representing balances

difficult.
Deficit

*This

Loan Accounts

'

/

Operating cash balance (incl. gold)*
Debt subject to limit..-

$9,7p0,000,000, but/ the cash>work:,ing balance'(funds available to'

•

fluctuations' in' receipts
which would make operations un-

V

.

MID-MONTH FIGURES:
""

June

on

The

'

and

;

-

i

balanced

a

there. would

the

.,

$276,013,000,000

was

188,000,000.

more-

seasonal

der

..

fimit...........

to the debt subject to
30, 1957; of $270,-,

compared
limit

-

management- Of

.

-

(3)

•

allow efficient

debt.

get

need

was

to

economical

,

public debt and guar-'
obligations' subject-to1 the

anteed

more

adequate and prudent level.-

June

on

30, -1958,

debt limit

(1) The fact that cash balances

1,(2)

,

r:

Y

'

Debt subject to

^la»celn theTrpsUryon

$5,590,000,000

_

,

flexibility

.

'...

-

End

to

that

on

OUTSTANDING:

DEBT

Beginning
Change

.

'

be

our

amount

feAVnnn'
amounted
to f0:14
$9,750,000,000,
as
compared
to

lactors.

should

,,

PUBLIC
,

onv

:
.

Lappaa'ed ln-.danuary'! °n ; June
^ the
}i.m .'n016?80 amount ot
predicated

wS,
was

that

will

•

^
cash

"

.

untilt.und

on

public debt.
T

balance

"

-

,

result

A? increase jn th« debt limit is
?eeded ,even tho"gh ^he general

from

billion

1959, in the limit

;

^
is estimated

working

public debt.: date '

temporary increase

billion

will

!v m, tbe between $4 and $5 billion

on

was

on

deficit

public debt outstanding

lion. It

mP°""

.

statutory limit

urge iqh the

Tbill "to
.J?

Sobert B. Aadervoo

estimated

4.5

The

Johnson, Lane, Space Corporation

Robinson-Humphrey Company, Inc.
1

Courts & Co.

mated

that

the

excess

could

temporary

.

increases

in

the debt limit, and

Howard, Weil, Labouisse, Friedrichs & Company
1

Atwill and

Company, Inc.

Clement A. Evans & Company
Incorporated

Varnedoe, Chisholm & Co.

Alester G. Furman Co., Inc.

Incorporated

J. H. Hilsman &

Co., Inc.

G. H. Crawford Co., Inc.

Huger, Barnwell & Company

be

"rePaid from tax Collections prior
to the expiration of the

R. S. Dickson & Company
Incorporated

During

in excess of the permanent debt
limit, it could be reasonably esti-

t

in

McCarley & Company, Inc.

r

Norris & Hirshberg, Inc.

French & Crawford, Inc.

i

The Commercial

8

and Financial Chronicle

.

.

Thursday, August 7, 1958

.

(504)

Stalwart

Infirm—Listed stocks founded over a

or

century ago

Homer O'Connell V.- P.

Exchange"—Exchange Magazine, 11
Street, New York 5, N. Y.—20c per copy ($150 per
year). Also in the same issue is a study of 25 volume leaders, earnings distributions, etc.
in

August issue of "The

Wall

Dealer-Broker Investment

'

;;1.;

Recommendations & Literature
will be pleased

It is understood that the firms mentioned
to

•

mend interested parties the

following literature:

a

Corporation—Analysis—Stroud & Company
Incorporated, 123 South Broad Street, Philadelphia 9, Pa.
American Investors Corporation—Bulletin—De Witt
Conklin
Organization, 120 Broadway, New York 5, N. Y. Also avail¬
able is a bulletin on Pacific Gamble Robinson Co.
American Motors—Analysis—Bache & Co., 36 Wall Street, New

atomic power con¬

1953; discussion of acceleration of

since

Co.

Development Securities
Inc., 1033 30th Street, N. W., Washington 7, D. C.
in

struction

Europe

—

Atomic

Banks and Trust Companies of the

Hanseatic Corpora-

View

— Burnham and
N. Y. Also avail-

Monthly investment letter

—

v

Dividends

Cash

common

every

stocks

Stock Exchange,

months

three

New

on

York

up

to 94 years—list of

York

Stock Exchange—New

N. Y.

11 Wall Street, New York 5,

Chemical Industry—Analysis—David L. Babson

and Company,

,

issue of the "American Investor''—American Investor, 86
Trinity Place, New York 6, N. Y.—15c per copy ($1 per
year). Also in the same issue are articles on Philips Elec¬
tronics, comparison of growth aid income stocks; Murphy
Corporation and Reading Tube Corporation.
Industrial Production in Japan—Discussion—Nomura Securi¬
61 Broadway, New York 6, N. Y.

ties Co., Ltd.,

bulletin is

same

Introduction

discussion of the Japanese Auto Industry.

a

Exempt

Tax

to

Also in the

Bonds

—

Bulletin

Scharff &

—

Jones, Inc., 219 Carondelet Street, New Orleans 12, La.
Investing In Assets — Analysis with particular reference

to

Twentieth Cen¬
tury Fox Film Corporation—Shearson, Hammill & Co., 14

of

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

the current market.

Investment

Panama

in

industrial and
&

York 7, N.

Booklet providing

—

information for

in the investment of

Foreign Power

100 Church Street, New

Company, Inc.,

Y.

Economy

New York.
Life

J. Frank

&

Co., Fifth

Bank

Building, Cincinnati 2, Ohio.
Over-the-Counter Index—Folder showing an up-to-date com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 19-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.
Stocks—Comparison

Bank

of

largest

12

Schmidt & Co., 120 Broadway, New York 5, N. Y.
Railroads—Comparative figures on six well situation roads—
in

"Current

Comments

Investors"—Francis

for

&

Co., 1 Wall Street, New York 5, N. Y.

is

a

list

bound

of

42

with

I.

du

Pont

In the same issue
selected companies whose profits should re¬

better

business

conditions.

Also available

is

a

comparison of price-earnings ratios.
Real

Illinois

Estate

Bond

&

Telephone

International

Glass,

new

ca¬

pacity,

Mr.

O'Connell will
firm's

the

institu¬

Sales•

Department.
For the past *
fourteen years
Mr.

O'Connell

has

conducted

his
as

own.

firm /

distribu¬

a

of general

tor

market

Stock

member of the

able is the current "ABC"

letter with comments

on

Owens

Illinois Glass Co., Ruberoid Company, EI Paso Natural Gas

Co., Ryder System and Grolier Society.
Selected Securities
In various categories
—

Telegraph,

&

and

Inc.—Memorandum—Green, Ellis & Anderson, 61
Broadway, New York 6, N. Y.
El Paso Natural Gas Company—Analysis—Taylor, Rogers &
Tracy, Inc., 105 South La Salle Street, Chicago 3, 111.
Electric Company—Analysis—Thomson & McKinnon,
11 Wall

a

director

Downtown to Mark

"Salute to the ¥. F. W."
aside

the Wall

by Charles
01B

M

Iowa.

Kerr McGee
Broeck

Light

—

E. F. Hutton

&

and

Company,

Power

Cedar

eign Wars.

report—

The

Rapids,

highlight

data

are

Mack

on

band
at

Trucks, Northern Pa¬

Worthington Corporation and United

C.

Manufacturing

Cement

Co.

—

Memorandum

—

Mine Safety Appliances

Co.—Study—Troster, Singer & Co., 74

Trinity Place, New York 6, N. Y.
American Aviation—Analysis—Dean Witter

North

Montgomery Street, San Francisco 6, Calif.
data

on

Nunn Bush

Monsanto

Shoe

& Co., 45
Also available

and Lockheed.

Chemical

Report — The Milwaukee Com¬
pany, 207 East Michigan Street, Milwaukee 2, Wis.
Also
available is a report on the United States Life Insurance
Company of N. Y. and Travelers Insurance Company.

Ryder

System

Wall

Company

Inc.

—

—

Analysis

—

General1 Investing Corp., 80

Street, New York 5, N. Y.

change Place, New York 5, N. Y.
Sperry Rand Corp.—Analysis—Halle & Stieglitz, 52

Wall St.,

5, N. Y.

Co., Ill Broadway, New York 6, N. Y.

Also available is

a

review of Thompson Ramo Wooldridge Corp.

Street, New York 5, N. Y.
—

Reynolds & Co., 120

Broadway,

of
the,
speakers at the concert will be
Heyman Sandy Rothbart, Judge
Advocate
of the Department of
the State of New York, V.F.W.,
who
will
preside, Lt.
General
B. M. Bryan, U.S.A., Commanding
General

.

.

.

&

Co., 15 Broad Street, New York 5, N. Y.

Cruttenden, PoCo., 209 South La Salle Street, Chicago 4, 111.

Victoreen Instrument

Going to yiress—

desta

&

Company

Western Union Telegraph
40 Wall

Revised 4 Page Study of:

largest producer of safety equipment;

pioneer

boron fuels

high

Co.

—

Analysis

—

Company—Analysis—Parrish & Co.,

Street, New York 5, N. Y.

manufacturer
and

thermal

temperature

of

metal

David Rockefeller,

p

Security Dealers Association

COMMON

tan Association and Director Paul

sion

of

New York

at

the

to

be

74

STOCK

on

Request

Mitchell & Compani)
Philadelphia-Baltimore Stock Exchange

Trinity Place, New York 6, N. Y.
120 BROADWAY




Teletype NY 1-376-377-378

'•■b

Leaders

business and vet¬

will

affairs

erans

City Divi¬

Alfairs.

Veteran

be

introduced

ceremony.

"Salute

the V.F.W."

to

by the

sponsored

town-Lower

is

Down¬
Associa¬

Manhattan

tion, Wall Street Post 310, V.F.W.,
New York County Council V.F.W.
and

Local

Federation

of

802

of

American

the

Musicians.

As

an

additional feature of the program,
marks

the

of

the

53th

Annual

Veterans
on

of

page

44

AUTHORS WANTED

Bought—Sold—Quoted

Members

HAnover 2-2400

Chairman

BILLUPS EASTERN PETROLEUM CO.

technology.

Troster, Singer & Co.

W.

of the Downtown-Lower Manhat¬

BY N. Y. PUBLISHER
Neiv

Members New York

John

Bunks, Brokers and Dealers

Prospectus

i

Dis¬

V.F.W.

Mahan, V.F.W. Department Com¬
mander Basil Valletta,. National
V.F.W. American Sovereignty
Chairman Edward L. Papantonio,

Continued

high-energy

batteries; leader in

liquid

For

Naval

National

Incoming

trict,

Convention

Appliances

Army, Rear

Third

Commandant

which

Safety

First

the

of

Among

Admiral Chester C. Wood, U.S.N.,

The

Co.—Memorandum—Hemphill, Noyes

12

symphonic band

a

in government,

5, N. Y. Also available is a list of interesting con¬

United Gas Improvement

at

which

musician-veterans.

Rutheiser,

Inc.—Analysis—John H. Lewis & Co., 63 Wall

Aircraft—Analysis

Battery

noon,

will include the band of the First

Mr.

Tishman Realty and Construction Co.—Analysis—Ira Haupt &

a

concert

Park

Commander-in-Chief

Seismograph—Report—Singer, Bean & Mackie, Inc., 40 Ex¬

United

financial institutions

Murphy III

Army and

Co,, 29 Broadway, New York 6, N. Y.

vertible bonds.

For

O'B.

Aircraft Corporation.
Schweickart &

p r o-

will

gram.

cific Railway Company,

Marquette

phy &
I ti c.):

r

o.,

Post 310, Vet¬
erans
of For¬

v.

bulletin

same

n

III

of Wall Street

Oil Industries Inc.—Data—Oppenheimer, Vanden
Co., 120 Broadway, New York 5, N. Y. Also in

&

e

Commander

York—Bulletin—Laird, Bissell & Meeds,

Street, Plainfield, N. J.
Light and Power Company—Annual

;:':yv

u

C

•

240 West Front

Electric

i

r

Murphy,

..(Pearson,

Broadway, New York 5, N. Y.
llaydu Electronic Products Inc.—Analysis—Berry & Company,
Electric

announced

Manhattan area, it was

120

New York

the

"V.F.W.

as

Street Downtown-Lower

Department, 9200 Waysata Boulevard, Min¬

Hanover Bank of New

Iowa

has been
Day" in

Tuesday, Aug. 19, 1958
set

brochure—General Mills, Inc.,

Inc.—Illustrated

Public Relations

-

and is

J.

Also available is a report

Street, New York 5, N. Y.

Mills

General

/

.

.

.

Robinson Aviation,

of

Inc., Teterboro, N.

Southern Pacific Company.

on

United Air Lines

Company, 61 Broadway, New York 6, N. Y.

World's

,

of New York,

Club

Bond

O'Connell

Homer J,

He is a

rities.

Sundstrand Machine Tool.

Daystrom

New York

Averages— Amott,

Baker & Co.,
Incorporated, 150 Broadway, New York 38, N. Y. Also avail¬

Mine

:

secu¬

.

Letter"—Hayden, Stone & Co., 25 Broad Street, New York 4,
N. Y.
Also in the same issue are discussions of Owens

are

Phila¬
delphia banks—Stroud & Company Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
Put & Call Options — Booklet on how to use them — Filer,

Philadelphia

Packing

Labouisse, Friedrichs & Co., 222 Carondelet Street, New
Orleans 12, La.
Corn Products Refining—Data in August "Monthly Investment

the

Stocks —Circular—-A.

Insurance

Third

Corporation—Analysis—Harris, Upham &
Co., 320 Broadway, New York 5, N. Y. Also available are
reports on Associated Dry Goods Corp. and Tidewater Oil
and lists of stocks which appear interesting.
J. I. Case—Analysis—du Pont, Homsey & Company, 31 Milk
Street, Boston 9, Mass. Also in the same bulletin are an¬
alyses of Harbison Walker Refractories, Ekco Products and
Also Products.
v.:— \
Central Louisiana Electric Co.—Memorandum—Howard, Weil,

Iowa

Today—Analysis—Boni, Watkins, Jason &
Co., Inc., 37 Wall Street, New York 5, N. Y.
Japanese Stocks — Current information — Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

Japan's

and Remington Corporation.

'

his

neapolis 26, Minn.

private capital and in t
commercial operations in Panama—American

those interested

Cor¬

In

announced.

General

Electric Auto-Lite, Murray Corporation and

Wall

Securities

poration; 1520 Locust Street, Philadelphia 2, Pa. Also avail¬
able are bulletins on Continental American Life Insurance

■

Incorporated, 89 Broad Street, Boston 10, Mass.
Foreign -Cars: Fad or Future? — Discussion in July-August

St., New York City,, the firm has

tional

Co., 52 Wall Street, New York 5, N. Y.
Kenilind Oil Corp.—Bulletin—First

California

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

Alstyne, Noel &

Inc.—Analysis—Van

Co.,Inc., 20 Broad

rector of Blair &

supervise

5, N. Y.
Centers,

Sewing

Baruch

United States—Comparative

figures as of June 30, 1958—New York
tion, 120 Broadway, New York 5, N. Y.
Burnham

Atlas

di¬

and

Vice-President

a

been

has

O'Connell

J.

Homer
elected

*

*

American Cement

York

of radioistope users

Atomic letter No. 40—Including number

*

■

Of Blair & Go. Inc.

Telephone: WOrth 4-3113

•

NEW YORK CITY
Bell Teletype N. V. 1-1227

York, N. Y.—One of the nation's

largest book publishers is seeking booklenglli manuscripts of all types—fiction,
noil-fiction, poetry. Special attention to
new

writers.

For

more

send for booklet CN—it's

information,

free. Vantage
Press, 120 W. 31 St„ New York 1.
(Branches in: ff ashingtort, D. C., Chi¬
cago,

Hollywood, Calif.)

I

Volume

188

Number 5766

.

.

.

The Commercial and Financial Chronicle

(505)

Sales Management's New Hoiizons
By B. K. WICKSTROI*
V

Senior Vice-President

economic

has

growth

the point

an

to support his contention
unprecedented challenge of a real
ahead. Points out we are way past

-

-

curve

of meeting basic needs and

in

are

of creating

an era

and answering almost limitless demands-

;

Urges taking advan¬
tage of today's terrific opportunity by fully utilizing marketing
function, which includes scientific study; planning and coordination wherein selling is but one phase of
marketing and must
be done by everyone from top management on down—not the

.

.

marketing force alone./

-

>

sales

a

;

products.

new

...

research phase

.

of

marketing,
there.just

won't

be

any
hori¬

"new
zons"

in

Present Stress
Aiicl

If

organization neglects that
all-important

mar-

keting. : ....; ;
.And, regard.'less of how

gineering and

:

production

or—

g a nidations

are—regardBarton K. WickEtruni

1

of how

es s

much progress

they

have

achieved

search—if

the

through

re¬

sales

organization
stops researching and decides that
its

present

will

be

marketing

good

enough

methods
over .the

long-range future, then the Amer¬
ican

the

and

economy

American

standard of

living are going to be
stopped dead in their tracks. After
all, the American economy is. the
combination of the production and
sales of goods and services, and if

gradually slip¬
competitors.
wants

plant

to

.-

Within

Distribution
few

a

postwar

Marketing :

on

next broad

after

the

period,

the

years

adjustment

phase

made itself

soon

extremely evident, and that is the
in

era

decides, to have the

and

find

to

which

it

begins when top management de¬
a reputation for
selling
quality product at the lowest
possible cost is the kind of a repu¬

of

era

distribution, a steadily broad¬
ening
flow .and "an
increasing
number of goods and services to
and more markets.

ing

question,

function

in

the

recent

the major areas
may

phasis

as

of

completely selfof today's
em¬

because

"marketing."

on

has

one

of business. That

be

to

seem

evident

market¬

years

firmly established itself

But

Unless

only
part* of the broader marketing
function is really a postwar de¬
velopment which evolved out of
one

increased

have

you

competition.

sound

man¬

much sound plan¬

ning and direction

manufacturing,

as

top

Now,

in

scientific

going- back

side

rules. There

they

of

engineering,

finance

or

philosophy that

any¬

you

wish for the answer to

ing problem;
the

answer.

(1)

Define

problem.

your

other words, what
know?

do

(2)

Ask
than

more

is

here

someone
you.

Half

admitting
who

who

that

knows

there

way

does

a

you

leading question
the

answer

you

get, which all too fre¬
isn't the rightt answer

sales executive who said: "I don't

unwound

an

the ninth

eight-day clock

on

day.

While I may be just a bit preju¬
diced, as a marketing man, I can't
help but feel that marketing is the

backbone
it

has

of

our

always

look back

so?

As

you

the years, particu¬

larly the past 30
several

But

economy.

been

over

or so, you can see

rather

sharply
defined
phases in this country's business
development. In the 1920's up un¬
til the

depression, and then in the

period up to World War
II, the emphasis was on produc¬
tion. TO bs.sure, selling and engi¬

recovery

neering were then, as they are
today, vital parts of industry, but
by far the strongest emphasis was
on getting out the goods, whether
the

product

locomotive
radio

or

or

automobile

an

a

or

a

requirements of Lend-

and

then

into

entry

our

II propelled us not
unprecedented produc¬
tion but also into a period of the
most
rapid
and
most
amazing
technological progress in the his¬
tory of the world. I think we can
say
quite
positively
that from
1939 until 1945, the pressures of
World

only

planning, for defining objec¬
tives and following them through.
It goes almost without saying that
planning must be scientific or it
is worthless, and this is particu¬
larly so these days when every¬
thing is becoming more and more
scientific.
lems

world

the

technical

make

to

than

advances

it

normally would have recorded in
25 years. That might even be too
conservative.
war,

we

War

II

While

and,

we

admit

must

yes,

brought technical
because

of

of

all

that

even

hate

World
Korea,

eras

worth not¬

their

permanent

far-reaching

and

the

and

impact

on

all

only

is

address, by

Mr. Wickstrum before
Stanford .Business .Conference, Stan¬

ford

you

way

our

care

how you

mation

the

as

long

of

boss."

University, Stanford, Calif., July 23,

1958.




as

about

a

stead¬

living,

Gross

a

Na¬

of

might

even

be

more

Scientists

turning
proved
makes

out

an industrial
city, has
agricultural economy, is an
important fishing port, and in ad¬
dition the U. S. Navy
pumps a
lot of money into the
city. Every

month

by

there

in

are

homes
If

products
the

at

rate

a

are

which

pretty small
Industry
and
alike are going

past look

States

people

many

as

Norfolk. Think of it

are

in

sales

more

the

than

United

50,000,000

States.

management

.

.

.

get

can

a

substantial portion of the owners
of these 50,000,000 homes to do

just 5%

10% of the things that

or

should be

done

to these

homes—

just think of the boost it would
give to the Gross National Product.
If

that

doesn't

precedented
executive

in

seen

present

challenge

an

to

America,

one.

Here

un¬

every

I

have

are

enor¬

opportunities to put new
improved products to work at

mous

and

im¬

as

the

year,

United

month you have, in ef¬
fect, a brand new market of some
250,000 people.

and

and

the

the

—every

a

engineers

of

increases

Curve Is Steadily

comparison.

by

throughout

population

Upward

ideas

aspect

some

estimates in the past

new

-

one

Norfolk is

never

the

interpret the infor¬
as we look good to

hard

look at

a

ple, and only people buy things.
The last time I was in
Norfolk,
Va., things looked pretty brisk.

inevitably turned out to be
on the low side.

away

they

of the growth—the
aspect bf peo¬

•

have

(4) Interpret the data correctly.
me

a

$440 billion

as

Population Growth

scale

which

we

have

never

dreamed would be possible. How
to take advantage of opportuni¬
ties is the big question.

Up until

now, my

remarks have

concerned

my
general
philoso¬
Granted that small businesses
all of us get too many reports to through the greatest expansion in phies about marketing under any
set
of business
conditions.
But
read, I nevertheless am convinced their histories, and business in-"
how do they apply right now—in
that most of our problems could vestment is expected to increase
1958, when the going, at
be
solved by using information by more than $60 billion this year. July,

(5) Use the data.

already available or which could
made readily available.

be

Half of this

and

will be in

mean

new

new

plant

times,

will also
retail stores, new shop¬

equipment,

but

it

be in¬
marketing ping centers, and a greatly ex¬
panded retail trade all along the
and in evaluating its ef¬

These five

principles

can

valuable in planning a

may

seem

Terrific

a

little

rough?

Opportunity to

"Put-up"

or

"Shut-up"

This business adjustment has a

me

them—scientifi¬

say

-

,,

do

I

But

highly

to

want

is

there

suggest

that

in

this

substitute

no

for
marketing
problems, scientific accumulation
of data, and scientific evaluation
competitive

and

use

study

economy

of

Pepsi-Cola Company

of that data.

has

acquired the

Selling Is Everyone's Job
far

So

have

I

been

entire

discussing

"selling" in the broadest sense—
the marketing side of the business
—with
particular
emphasis on

capital stocks of

Pepsi-Cola Bottlers of St. Louis, Inc.
V

planning and increased distribu¬
tion.
However, there is an even
broader
area
of
selling that I

(

the final

in

analysis it de¬

just how successful

going

are

to

be.

I

about the entire range
ness

am

you

talking

of the busi¬

Negotiations were handled by

you happen to be in—from
engineers
who
design
the

product,

the

to

Stifel, Nicolaus & Company

manufacturing

people who produce it, and then
to

and

Hygrade Water and Soda Company

would like to comment about, be¬
cause

termines

you—the

damental
the

solve
there,
can lick

to

away

solve

to

Let

man

demand for it.

us.

•An

prpbgetting

It

because

are

than

money

program
definite
"put-up" or "shut-up"
line.
Consumer
income
is
ex¬
fectiveness. Another way of say¬
right here that
pected to reach $280 billion, and quality as far as I am concerned,
ing
it
is
this:
You
can't
operate
in
because
industry has a terrific op¬
I am not suggesting that market¬
that means after taxes.
a vacuum. That old tale about the
portunity to prove that it can
ing men get so scientific that they
However, this will not be an
eager customers beating a path to
keep
its
own house in order and
spend all of their time manipulat¬
the door of the mousetrap maker artificial boom in the sense we accelerate
the recovery process.
ing slide rules and forget about
is a pleasant story, but is 100% will have to resign ourselves to
moving the goods. That would
Continued on page 18
removed from reality.
settling down to a lower level of
turn out to be a little impractical.

them

cally.

the

ing

not

bring

65,000,000 -people

more

Let's take

There

Economic

reminds

pre¬

marketing effort,
population
growth,

billion.

all.

always

ones.

$425 billion

selling

Product

65,000,-

dreamed of.

*

buys

$470 billion by
1960, and by 1965 could top $560

War

forced

more

of

themselves. They like to sit

into

war

habit

a

walking

and

up

Unfortunately,

have

scientific

anything else.

Then the

Lease

toothpaste

was

or

cess

for

is

these

ever

the

about

steady

wanted to

quently

that

is geared to
making the consumer

of

total of nearly 65,000,-

people .'in the United States
paid jobs. And don't forget"

earnings

greater

should

give

with

you

fallen

wife

plus everyone's desire for
ily
higher
standard
of

is

Ask the question in such a
that you get the facts. The
is

000

economy

whole

a

tional

(3)

means"we have

something, and that is

rate

our

do.

you

a

000. This

looking at the old

With

than

more

people to

it could.

battle

riddance;

goods and services, then the econ¬
will be about as dynamic as

as

knows

the

-

by the end of the year. And yet I
honestly don't feel that industry

In

really

you

has

your

year, and may exceed

get

want to

selling

for good—and I say good
In achieving sales suc¬
today, there is no substitute

of

entire

market-, nual

a

you go out and
Here they are:

any

omy

and

little,

Today our economy is produc¬
ing goods and services at the an¬

don't

This

hit-or-miss

growing

size and in standard of

cisely the dynamic kind of think¬
ing that keeps our economy roll¬
ing along in high gear. '

five of them, and
on the funda¬

are

has gone

of

that

contrary,

curve is trending stead¬
ily upward because this nation is

living room,
bought them because she was

want

I
definite

some

for

the idea of

marketing,

giving

very

car

when

drapes

tired

all based

are

mental

at

day

she

to ' the

methods

The

new

Five Scientific Marketing Rules

only thing that

much

On. the

economic

usually isn't be¬

old

your

and

Our

—requires

as

this

,

someone

as

all

up, you

Marketing today—embracing
product
planning,
market
re¬
search, advertising, merchandis¬
ing, distribution, and field selling
agement and

business.,

^x^ivv.

have for sale. When

new car it

a

cause

part,

management support backing you

the

fact of the matter is that recogni¬
tion of the sale function as

greatly

w

"

.

executives, then,

you

buy

tation to have.

cannot resist

Without

--

uct

marketing

and

more

llKe

desire in his mind for the
prod¬

a

a

iar that the

people no longer have
inducement
to
buy
these

As

really don't have anything
ourselves to
sell.
'
J *
:

find

we

the

.

WOUld

if any, of your effort is directed
toward meeting customer needs,
in the strict
sense, but of creating

can

thing else.

of marketing become so
dog-eared and so boringly famil¬

necessities?

can

that' plant;T And

run

.

today

1

Creating Demand, Not
Meeting Need

get

equipment it
obtain, and the best people it

.

up-to-date en-'

your

company

management

-

effective and

will

you

iiuw

few

observations, about
this
country's philosophy of marketing.

cides that

; Research is playing as important
a part in
marketing as it is in the

development of

any

best

-

:

to

away

If

population and economic data

industry

do,

as you

niiu

a

growing—both in
living.
Unemployment
is up!1 But un¬
ahead these days, its entire
Whereas the greater portion of
top
employment figures are puzzling
management must regard selling the rest of the world is still
try¬ until you start digging a little.
as a
company-wide responsibility, ing to meet basic
needs, we are Unemployment rose in
June, but
because selling begins a long time
away past that point and are cre¬ when
you dig a bit you discover
before any of your salesmen call
ating
and
answering demands. this was because the schools and
on the customer.
It begins when Just think about
it for a moment.
colleges let out in June, and busi¬
top management decides to have a How many
things do you buy that ness-and industry had
only just
research
organization
with
the you really need?
Don't you buy begun
digesting this new crop of
proper
people and facilities to most of them—the vast
majority job eligibles. The important fact
bring out new ideas as insurance of them—because you want
thern, is that employment actually in¬
for the future. It begins when
top and not because they are basic; creased in
June • by one million
ping

—

Sylvam&'s top marketing executive discusses the new aspects
of marketing under any set of business
conditions, and fur¬
that

effectively

as

find your markets

Marketing
ivania Electric Products, Inc., New York
City

nishes

and everyone else.
Unless they,
in their way, sell just as hard and

9

Investment Bankers—Established 1890

Selling is the fun¬

job of everyone—not the

marketing

ST. LOUIS

force

the financial

turing

INCORPORATED

who creates the

and

alone, but also
people, the manufac¬
engineering people,

July 29,1958

|

CHICAGO

The Commercial 2nd Financial

10

Chronicle

.

.

Thursday, August 7, 1958

.

(506)
thing that has been

What "Growth

Stocks"

Pick?

Would Shakespeare

recalls past unshakable views held by many regard¬
ing1 prospects for growth stocks and unexpectedly disappoint¬
ing market performance and wonders whether investors are
not following this pattern by neglecting to invest in good gold
mining stocks. Believes gold shares, offer fprotection against
dollar depreciation and possess. other ^attributes which make
them preferable to shires in. other industries.
wise

will rarely do Again
else is doing. He stocks

many

man

By II. L. SPENCER

trend. When a
group of stocks will not go down
on about the worst news or condi¬
tions you can expect, and when
the same group of stocks advances[
in spite of the broadcast: of dis¬
couraging' statements, the trendchange in a major

Mr. Taylor

The

Here

of today's "growth"

of locked up

their favor.

have

ther Federal interventions and vast increase in government

but, instead,
which
In

•

VA

at

ago

ered it very

of its

because

glamor and
as

"growth" sit¬
uation, wh e n
is mostly

and
re¬

price.

Stocks.

It is far more

purchase, and are only

their

will¬

to concede that they may
have defensive characteristics in

v

Remember

of

case

Reid Taylor

depression.

a

Professional

investment managers who charge

Eastland

the

together in one
which major¬
waters.
But everyone was on ity opinion dictates, have likewise
almost completely avoided them
one side of the boat and that was
as
unattractive unless they may
the wrong place to be. The pas¬
have diversified into other recent¬
senger public found out too late
what the owners already suspi- ly booming industries which are
in favor with the public for the
cioned, that the boat was unstable.
time being. None of these people
Such a situation occurred at the see
any chance of a change in the
very top of the stock market rally
gold picture in the "foreseeable
in

Disaster

boat

This

the

a

Chicago River?
to be in safe

fee for gathering

basket those stocks

seemed

.

-

In

when

1930

a

well known

or¬

ganization reflecting group opin¬
ion at the time, reassured their
readers with exactly what they
wanted to hear, "A major decline
St

time is almost inconceiv¬

this

able."

They

-

bound in shallows

Is

and in mis¬

eries."

ing

its

in

flected

consid¬

their

all the voyage of

life

important,'

more

mining stocks are on satisfying, more sensible, .'and will
the neglected side today. In fact ultimately be far more rewarding
to be riding the tide than to at¬
everyone who undertakes to tell
others how to make money, almost tempt to steer one's course through
without exception, advises against the shoals of these tortuous times,

this

already

Omitted,

years

Good gold

a

hindsight

because they
speculative.

Gold

is

it

because

known

some

were

so

sure

they printed it in bold type.

that
Ob¬

future."
Do

&

tral

-

■

selling at,,25c a share (now
Was

anyone

$45)?
its

recommending

purchase at that time?
Do

viously what everyone thinks re¬

nental

garding the stock market and in?
dividual stocks, is more likely to
be wrong than right.. We might

$23)?

add, there is a logical reason for
this. What almost everyone thinks
and knows is generally already
taken into account by the market.

xun.

Today's "Growth" stocks appear
safe to almost everyone, but it

-

remember when Cen¬
Southwest Utilities was

you

remember

you

Warrants

Tri-Conti1/32

at

(now

Where were the recommen¬
dations then?
No, the full page

ads

telling how you could have
$500 into $104,000 were, not

endeavor

to guess which/: provide jobs?1'

and

to

way

the wind will shift next.

'

Non-Depreciating Investment

*;

&

the

"attractive

Foreign Power at 199 were
long pull invest¬

ment" stocks
never

of

1929.

since recovered

blance

of

their

They have
even

former

a sem¬

glamor.

week

battle

,

'

bring.!

the

vast

handed

1959-60 Federal defi¬
of $8-10 billion under present
rates, to make a drastic cut

probable

a

cit

tax

costly

taxes

income

in

to

the

Treasury

'

large

are

that

Secretary "Anderson * could

hardly face a 1959-60 deficit of
$15-20 billion with any hope of
success.
A destructive period of

'

runaway
no

one,

current

It

seems,

Stock Market" before members
the Locust Valley Rotary

least

a

luncheon meeting on

in Marshall's
Locust Valley, L. I.

Aug.

7

of
Club at

costly to the Treasury while
most stimulating

at the same time

Thursday,

Restaurant,'*to

the

to

young

revision that

promote the cre¬
new

enterprises

provide jobs.

Our

;old-" established mass production
industries
have
unfortunately,
under the forced draft of the re-

associated

expanded to the point
over-productive capacity.

cent boom,
of great
We

cannot

look to

them for new

with Walston & Co., 210 East Wis¬

Deplirt,nent

Lyn^ ' Pierce, Fenner

&

Smith

NEW YORK 5, N. Y.

jobs until their facilities are more
consin
Avenue.
Mr.
Danielson, fully employed. In the meantime,
of
tax
revision which
who has been in the investment : a. form
would meet
the above require¬
business in Milwaukee for many
ments would be outright repeal
years
&

was

formerly

with

Co. and prior thereto

tion.

Repeal of C. G. T. in Ger¬

many

is given a large part of the"

credit for the

great postwar eco¬
followed. '

nomic recovery which
/

The C. G. T. has for many
locked up a substantial part
our growth risk capital in situ¬

(4)

years

of

ations
better

the

for

liquidated
which

it would have been

which

was

owner

have

to

at the right time but
prevented by the heavy!

penalty involved.

•tax

cumbersome
enforce. It is an
endless-annoyance to millions of
taxpayers struggling angrily each
year
over
the complicated re¬
quirements of their tax returns.
(5)

The C. G. T, is

and -costly

It

is

to

knowledge

common

it

that

provided many opportunities;
for
improper relations
between
collector and taxpayer. And, after
all
the
trouble
it
causes,
the
has

-

C.

G.

is

T.

ductive

futile

a

For

tax.

and

unpro¬

the

of

many

it has been in force it .has
failed to produce important reve¬
nue
to the
Treasury..
There: is.
years

little

doubt

if

that,

it

were

re¬

pealed, the tax loss to the govern¬
ment

limes

would

due to

risk

capital

creation of

be

made

up

ma,$y-

the increased' tax

by

over

take

release of locked up.

and its use in
enterprises.

new

the.
-

,,i,

?.

Wis.—John J.

become

of

which;; would

/

;

has

economy—a

would 'serve

John J. Danielson With

Danielson

Offices in 112 Cities

therefore, that in the
a new economic

situation

approach must be found. Beyond
doubt, we need tax revision now.
But it must be a revision that is

New York City, will discuss
Situation and the

"Economic

(Special to Th?: Financial Chronicle!

✓JL

of benefit to
would be the almost in¬
inflation,

Harris, Upham & Co., 120 Broad¬

..

,

already pf-Srish- gravity

ment

evitable result.

MILWAUKEE,

170 I

that each year are

to an ever more de¬

manding

Walston & Co. Inc.




sums

over

Percy S. Weeks, Manager of the
investment advisory department of
way,

block?

/Merrill

of

r.

On Stock Market

sell

risks

those

,

ation

70 PINE STREF

take

Why: sfiould; anyone?
if success is to

risk.

erable

^

the

^ „

• promise quick growth at consid¬

-

by ing the crest of the boom, expand¬

persistently in the face of every-

to

Market

"

could, in view of the
week all last year with one ex¬ ing operations enthusiastically on $726
billion Public and Private
Debt
just
reported, lead to a loss
ception—the gold mining stocks. the stilts of ever increasing debt
Furthermore, since early this year, with little thought of the inevi-.. of confidence in Federal credit.
gold mining stocks have advanced table letdown and what it will The problems of debt manage¬

persistently

Like

Call.

.

be penalized by punitive taxation? ;>
opposing ide¬
(2) The C. G. T. puts the Fed- t
ologies engaged in economic war¬ eral Government into silent, par¬
fare.
is
deadly
serious.
Mr.
ticipating/
but nonrcontributing
one
substance which retains its
value under all circumstances and Khrushchev has said, "We will partnership in every new under¬
must therefore finally appear to bury you."
Unless some means taking. Over the years such verin"
rise inversely as the dollar has can be found to reinvigorate the ture may grow and prosper. Durdeclined? Are we any less gullible American economy' '— to release ing
that time? the government
than were the ancients who were the natural energies of our people will collect, an income tax, now,
told/that th& earth was the center into another cycle of growth and at the rate of 52%; on corporate*'
of the universe
(like our paper prosperity — this Russian boast? earnings. Then, if in the normal"?
course of events, the corporation,
dollar) and that the sun moved up may not be an idle one.
business or property is sold, the
in the sky (like gold).
To
help end the current re ¬
increase in capital value, which;.
If paper money cannot go into cession short of a-long drawn out
has accrued over possibly many
gold, if it has already gone into period of depression, the ground
almost everything else of value rules under which our economic years and is sometimes very large;,
to seek Safety and Escape; is it system has for too long had to is treated as income occurring in [
the year of sale and the Treasury^
not reasonable to assume that it operate should be revised in order
will finally go into the most un¬ to give
it a better chance to helps itself to 25% of this alleged
income.
At that point the Federal1
dervalued of all equities, those function successfully if not, in¬
Government is > no longer silent:
which
represent
ownership ;; of deed,- to survive. The basic rules
which govern the economy today It becomes a very demanding and
gold in the ground?
rapacious partner.
There is no need to speculate are imbedded in our antiquated
(3) No other major nation is s6;
patchwork of tax laws. Most of
in gold mining promotions.
ill-advised
from
the
standpoint
us
can
agree
that this cumber¬
There are many fine companies
of economics as to continue use^
some system by which we raise
in this field with demonstrated
of this restrictive form of taxa-:

Weeks to Address

a

J;

j

"

declined

the term "income" wasf

Economy

'

.

This

Why not put your continually
depreciating paper dollars into,the

be there is too much com¬ f Now there has occurred a most
there too. It is more than important phenomenon which ap¬
This
likely that the glamor stocks of pears to refute all current popu¬ ficient in their operations.
the most recent bull market will lar opinions regarding gold min¬ is in contrast to the current situa¬
be anything but glamorous in the ing shares. Practically every stock tion
in
most
other
industries
next bull market. Radio Corp. at on the Toronto Mining Exchange where companies have been rid¬
can

;

.

pany

as

commonly

Federal Government
desperately needs revision and
for gold mining.
They have jre.TSimplification.
'
duced costs in every conceivable
v
Faced as we are, however, with
way and have become highly ef¬

may

400, Simmons Bed at 290, Ameri¬

income

Outlined

Repeal

capital gain is not true

(1) A

Natural Reinvigoration of the V?

pleading anyone to buy them at
that time. Only now do they look
records of production, companies
in retrospect to the tremendous
which have weathered many years
possibilities in long-term purchase of rising costs, most difficult years
warrants.

for

Reasons

.

fight'* to

understood when the.
propounded which will have to be 16th Amendment>was passed' ill
given logical and convincing an¬ 1913. Income is an earning which
swers
by the advocates of free: comes from the employment • of
economies.
One such question is capital and/or labor, which may
this: Why should the leading capi¬ be withdrawn, periodically with¬
talist nation/ In/ this time of dan¬ out impairment of capital. A capi¬
gerous unemployj^nt,. handicap tal gain is something very dif¬
the
successful operation of its
ferent/ 'It -becomes; income, as
own
economy by a form of re¬ construed
by, our> courts, only
strictive taxation which penalizes when realized. In' taxing growth
the growth of capital and its use of
capital we place a penalty;
in new enterprises which would against its use-in Situations which :

.

who advised

impede,

the

wide

debt

removal of capital gain negative penalties
debilitate and frustrate economic growth.

upon

presently existing world
a
finish between
Socialism
and
Capitalism there
are many
serious questions to be

were

by the same people
switching out of it

times over by increased tax take due to release
risk capital and probable stimulation of new enter¬

prise. Avers next business upswing should not be based on fur¬

very

ulative some years ago.

veigled into
buying a stock
at a high price

emphasize that the small Treasury tax loss would be

made up many

few!
friends but irresistible and relent-;
less economy forces are building
up in their favor quite unnoticed.
As Shakespeare would say:
stocks

Gold

compelling arguments for repeal of capital gains tax

are

which

.

must be rolling in.

;

Pasadena, Calif.

considered very spec¬
"There is a tide in the affairs of
One stock
the market¬
men
' which comes to mind, has been
place to buy when everyone else
highly recommended at 70, 80, and Which, taken at the f lood leads on
is buying. He
;.to fortune;
even
90 dollars a share recently
will not be in¬

what everyone
will not rush into

Retards New Growth

words.
This is the
of action which precedes a;

kind

Chicago, III.

Mitchell, Hutchins & Co.,

Capital Gains Tax

than

louder

TAYLOR

By REID

said to dis¬

their purchase, and in >
spite of the often declared pros- ;
pects being nil for an increase inL
the price of gold. Action speaks?
courage

Bache

with the

Bank of Commerce in Milwaukee.

of

gains tax.
Such
desirable for the fol¬

the .capital

repeal is
lowing" reasons:

Stimulation of business?
through organization of new un¬
dertakings would provide badly
needed jobs.
If, instead of wait-,
ing
for
government
to
spend
enough to provide make work
(6)

jobs, we can be given the incen-.
tives, through revision of our tax
laws, to help ourselves, then, withi
our
natural
American
energies?
released

strictions

from
of

the

the

bottleneck

C.

G.

T.,

ref

there

Volume

188

Number

will

real

hope

5766

.

.

The Commercial and Financial Chronicle

.

(507)
be

the recession

The

V

for

kw.

soon.

Associated

from

New

of U.

S.

Press

that

York

Public

an

for

an

system to

and

create

overhaul

of

the

in that

revenues up,

not by
incentive and

the

away
new

enterprise, but by
increasing the tax base
through business .expansion.?v.
steadily

Something Was Wrong

The actual

revenue

-

published' by
partment.

produced by

the /.Treasury

r

Figures

De¬

rado.-^

of

stood

are

this

ing

debilitating

that, in those

1930-41,

something

was

•

of

years

available

in

the

wrong

of the

stract

Statistical

United

'

Ab¬

set

forth

we

are

it

periment

*•,

noxious

clearly
seem
that, if
intent
upon

would

in. repeal

tax

of

this

would

done

fact

that

it

be

can

gas

safely

can

immediate

through
of reces¬

vide

jobs, then

forward

to

we

another

cycle

Marion, Boone,

V

,

wholesale business
revenues,

a

further

Federal

vast

increase

and

in

upon

debt

but

vigoration
tem

of

of

a

real

a

buy about one-third of the power from this

only about-10,000 btu

consume

sys¬

free

private enterprise.
By revising our tax system to one
which
provides positive
incen¬
tives for growth, rather than neg¬
ative penalties which impede and
frustrate growth, we would re¬
lease the energies of a,.multitude
of up and coming young business¬
whose combined

men

aspirations
the

are

ture

of

for

the

per

unit. The unit will"

kwh.; fuel will be either gas
or coal which is obtained

off-peak basis)

pooling

was

recently

Power & Light, Iowa
Iowa-Illinois Gas &

will

New

a
ON

Ohio—James
added

been

Symbol

THE

•

Effective August 1, 1958, the common stock of the
Iowa Electric Light and Power Company is admitted to

trading

With Collin Norton

c

"
-

on

the New York Stock Exchange.

Its symbol

will be IEL.

(Special to The Financial Chronicle)

,

TOLEDO, Ohio — Mrs.. Barbara
has joined
the staff of

A'/ Fox

Collin, Norton & Co., 506 Madi¬
son

Exchange

the

to

...

,

1953—

_

1952—

1951_^

—...

23,353
21,274
19,676

Earnings available for

30

25

2.27

1.40

32

26

2.10

1.24

28

1.78

1.20

24

a

1.72

1.125

21

1.69

0.95

20

1.52

0.90

14

stock have increased

common

since 1951. Share earnings also increased

when

High

24
20

17

'

1413

steadily

steadily excepting in 1957

Common stock equity has increased from
28%
37% in 1957.
are

(in their recent study)

years

Low-

substantial increase in the number of
shares resulted in

decline.

creased

-4

'

revenues

earnings

from

a

Avenue.

-

Company
share, not including any in¬

per

possible rate increase.

In

the next five

expected by that firm to increase about
35%,
30% if the company should decide to do
equity financing around

or

1961-62.

are

Dividends have increased each year since
1950, with the
The stock was recently listed on the New York

present rate $1.60.
Stock

Exchange, selling around 34.

Godfrey Bligh to
Tour Europe

luv. Ass'n of N. Y.
'

The Investment Association of
Godfrey Bligh, President of R.
Smythe & Co., Inc., .79 Wall New York announces the change
of
the date of their annual dinner
Street, New York City, dealers in
M.

inactive securities
of

obsolete,

and

extinct

appraisers

and

to

Dec.

10.

closely

Harris Upham Adds
securities, will leave on Fri¬
(Special to The Financial Chronicle)
day, Aug. 29, for a seven weeks'
of
Europe, where he will
ATLANTA,
Ga. — Robert : H. ;
visit
London, Vienna, Salzburg, Reed, Jr., has been added to the1
staff
of
Innsbruck, Italy and France. He
Harris, Upham & Co
held

„

tour

will return to New York Oct. 16.

26

Pryor Street, N. E.

"

!

'

•>

We have just completed a 12-page study which tells
why
believe this stock, admitted to trading August 1 on the
New York Stock Exchange, combines attractive
possi¬

/

we

4.6%, this utility occupies

a

yielding about

strong position in Iowa's fertile

and its territory has been largely unaffected by

economy,

the recession. In fact, sales to residential and rural, com-,
mercial and industrial customers have been

significantly

higher this

year

than in 1957.

-

•

■

■

-.

...

•-

Because of expanding sales and other favorable factors, a

The

principal properties of this 76-year old utility are
of Iowa's 99 counties.
It supplies elec¬
tricity to 375 communities and gas to 39. The company
operates 6 steam-electric generating stations with a total
capability of 272,950 kilowatts with an additional
127,000 kilowatts
of steam
capacity now under
located in 51

continuing upward trend of earnings is anticipated. For
your copy of our report discussing this well-situated com¬
pany,

mail the

coupon

below.

,

i Hornblower Adds Two
'•V
1

CHICAGO, 111.

Canfield
have

Richard

and

become

Hornblower

Charles; B.

—

&

B.

Scharff

associated

with

Weeks,-134 South

La Salle Street. "Mr.

construction
diesel

' (Special to The Financial Chronicle)"

Scharff Was

authorized.

or

generating

plants

of 48,586 kilowatts.
The

•

It

with

also

operates

combined

a

20

capacity

FOUNDED

"76

*

Daniel

M.

a

Lord

passed

age of 63

brief .illness. .He

had

of

a

"

Great State"

following
been

sociated with G. A. Saxton &

Inc., New
York.



1

Years of Serving

the Heartland
away

LIGHTED
J
POWER

:

'•

IOWA ULECTRIC

An Iowa

Corporation

as¬

Co.,

1865

JMembers F[ew York and (American Stock

17 Wall Street
BOSTON

formerly with Blair & Co., Inc.

July 28 at the

Kidder, Peabody^ Co.

>

covered

by the company's operations in¬
many of the finest industrial and agricultural
counties in the state. A copy of the company's most
recent Annual Report will be sent on request. ""
area

cludes

Daniel M. Lord

a

in 1951 to

forecast by Kidder,
Peabody &

at $2.20

bilities for both growth and income. Now

New York Stock

L.

staff of Bache & Co., Dixie Termi¬
nal Building.

,

1954

$1.50

'

fu¬

Bache Adds to Staff

has

_

1955-

Approximate Ranae

Dividends

$2.08

Light and Power Company

ahead

(Special to The Financial Chronicle)

Mueller

1956—

Per Share

Earnings

Iowa Electric

Presents
CINCINNATI,

1

\

1,764,000
1,544,000
1,544,000
1,544,000
1,544,000
1,316,000
1,316,000

•1' ■'

made.

be

$35,607
33,237
30,405
26,521

capacity of 1,150,000

dreams and
years

stuff from which the

America

an

new

An interconnection agreement for power
signed by Iowa Electric Light & Power, Iowa
Public Service, Iowa Southern Utilities and
Electric. These companies have a combined

rein-

American

our

Generating capacity

arrangement with Iowa Public Service to construct large new"
on a staggered
alternating basis and Iowa Public Service will

from nearby coal fields.

upon *

265,000 kw.

units

however, such growth should not,
based

was

steam,units,•■•■49,000.few; diesel plants, 7 small,
44,000 kwi steam plant owned by Central. Iowaf

(when available at

be

Domestic business provided 60% of
20%, and industrial 20%. Due to the-

Shares'

Outstanding

30 share

hydro plants and

of

1957

7%.

commercial

Cooperative, but operated by Iowa Electric and connected
with its transmission system. A new unit of 82,500 kw.
capability
will be added to the Sutherland Station in 1961. The company has

an

Revenues

(000's Omitted)

Earnings for 1958
revenues

relatively high proportion—commercial 23%, industrial 19%

growth and prosperity. This time,

interventions

Years Ending
December 31

/■, v ;•

-

Power

look

may

plans to build $400,000 facilities in that
city.
important cities served are Marshalltown,

Peak load last December

of risk
capital for use in
undertakings which will pro¬
new

Inter¬

includes 229,000 kw.

reverting to the mis¬
those other years and by

provide the incen¬
tives that will bring forth a new
new

headquarters.

compared with last year. In the 12 months-'
earnings were $2.11 compared with $1.98 in
the previous period, despite a poor
showing for the month of June.1

revision

flow

.

Capitalization.at the end of'1957 was 48%
debt, 15% preferred
stock, and 37% common stock equity. The next
financing is ex¬
pected to be sale of mortgage bonds in the second
half of 1959.
Equity financing is considered unlikely until 1961-62 or
later.
«

area

ended June

sion without

takes of

'

in the first five months

at

pass

period

•

relatively small proportion of industrial business, the recent
pros-'
perity of the farmers, and the fact that much of the industrial'
economy is tied in with farming/the company has not been notice-'
ably affected by the recession—in fact industrial sales gained 7%

such small cost in tax revenue.
we

-

quarter of industrial sales are'from companies connected with
the
processing of farm products, or with machinery used on" the farm.
Important customers include Quaker Oats, Collins
Radio, Wilson
Packing, Ralston Purina, General Mills, etc. Square D Manufactur¬
ing is a relatively new customer..

and

ob¬

the

:\V/ '■-

Iowa, considered the richest farm-"

three-quarters

of gas requirements are
purchased from Northern Natural Gas and
the balance from other
companies. Average cost of gas last year
was 35c per mcf. and
average revenue was 53c.
/ ;
;

equipment; dairy machinery, office equipment, shovels and home
heating equipment; and fabrication of iron and steel. About one-

—a

be

justified, particularly in

V;?

Residential and rural sales contribute 49% of electric

so

fully
view of

tax

70%

'

Fairfield, etc.

seriously
shortening the term of our pres¬
ent recession, a constructive ex¬

If

Minnesota, Nebraska, and Colo¬
of revenues, gas
27%, and

for

.VV.v;1:

Other

capital gains for 1953 of $2,036
•
\
'
V''

this

accounts

national Harvester

States shows

view of the lesson

75

areas

Cedar Rapids with a
population of some 88,000 is the largest
city in the service area and the company's

billion.
In

over

adjacent

in the United States, is in the
company's territory. Manu¬
facturing activities include meat packing;
processing of corn and
milk; manufacture of plastics, truck trailers,"radio and electronic

form of
It is pretty well under¬

now

and

a

The "Corn Belt" in Central

with this great and
wealthy country for during that time net capi¬
tal gains averaged only $52 mil¬
lion per year.
The latest data

net

Electricity

1954.

available,
net capi¬
tal gains (not tax revenue) dur¬
ing our last long period of de¬
pression, which was prolonged, at
least in part, by the existence and
taxation.

business

a

total population of 650,000.
Electricity is also
supplied at wholesale to 24s
municipalities, 15 public utilities and
there cooperatives.
Natural, manufactured, or propane gas is sup¬
plied in 41 communities in Iowa,

however, ^s to the total

use

serves

state, with

J A The company ?s postwar
^growth in revenues has been rapid—from $8.7 million in 1946 to
$35.6 million in 1957. However, part
of this increase resulted from
mergers: The company has acquired:
three properties adjacent to its* own
area^-Central States Electric
in 1951, Iowa Electric in 1953 and
Northwestern Light & Power in

C. G. T. is difficult to uncover in
the complicated mass of statistics

*

Light & Power, carrying on
electricity to 347; communities

steam 3%.

v

•

old,

compensatory
increases in gas rates,
although industrial contracts contain costadjustment clauses. In the Fort
Dodge case last year involving
Iowa-Illinois G. & E., the court
gave 70% weight to reproduction
cost and 30% to
original cost in the rate base. Iowa-Electric
may
request an increase in gas rates this summer in
some 12 communi¬
ties, to obtain a return of 6% on a modified fair
value rate base.
The application would include an
automatic adjustment clause
covering any future increases in cost of gas. Over

Light & Power Company

Iowa Electric

keep Federal
of

reserve

Iowa) in obtaining

Iowa Electric
years

taxing

generating
s

other utilities, gas revenues have shown
rapid
growth, increasing 213% since 1952.
However, with the increasing
cost of gas there have been
some difficulties with
municipalities
(there is no state commission in

By OWEN ELY

business

"a dynamic tax program that will

means

a

As with many

Federal

stimulate

jobs. What the econ¬
really needs, he declared, is

omy
:

WtUtiy Securities

Corporation, called

tax

Each company is expected to maintain

of 10 to 15%.

reported

May 22
Benjamin F. Fairless, retired head
Steel

11

of

end

an

GENERAL

OFFICES:

CEDAR

•

Loilt J)31iy

RAPIDS,

IOWA

•

•

PHILADELPHIA

Gentlemen: Please send

me,

Exchanges

New York
CHICAGO

5, N. Y.

LOS ANGELES

without Obligation, a copy of your
and Power Company.

report on Iowa Electric Light

»,

the Commercial and Financial Chronicle
12

.■'/VVV;ryv ■ rj •"

.v' vf:.

'

(>■ ;v. *

Long-term

.

In the United States
§ By 1ION. W. RANDOLPH BURGESS*
Ambassador to the O. E. E. C. and N. A, T. O.

U. S.

Former banker and Treasury

Council

in

persuasive and gratifying

PA^IS,

France

—

The subject

Organization for Euro¬

Economic Cooperation Coun¬
cil is the economic situation in

pean

member

S.f

coun-

The

tries.

,

coun¬

welcomes
this opportu¬
nity to make
informally a
few comments?

and/'

of a broad

general nature/
the sit-/

about

in

uation

As

the

States.

United

back-S

a

the

the decline has been

of

ture

fact

that the reduction

in outlays

plant and equipment and con¬
sumer durable goods did not lead
to similar cutbacks in other sec¬
on

ground, it may/
'.be well to

W- Randolph

burgess

,

avoidance goods but extended rather quickly
most
major manufacturing
of inflation and the preservation into
Production of fuels and
of the. Value of the currency. In areas.
other
mineral
products, housing
the long run, inflation militates

I

is

the

against economic growth by dis¬
couraging savings and weakening

start#, output of

electricity, freight

carloadings and department
sales all moved forward.

store

investment and increases
in productivity.
The liquidation of business in¬
,
'Finally, while governmental ventories—-One of the most impor¬
policies should encourage a full tant factors in the recession, but
and effective use of the resources clearly a temporary one-—has been
of our economy, we must recog- sd
extensive
that its
cessation,
nize'that in free societies some would in itself induce a substan¬
fluctuations in the rate of eco¬ tial increase in production.
The;
nomic .activity are inevitable;
recovery of steel production in re¬
cent
months
may
have
been
Current Economic Situation in
brought on in part by an:undue
capital

'

United States
It

now seems

depletion of steel inventories.

clear that the eco¬

nomic downturn in the U.

S. that

U.

The

In

began in mid-1957 has ended.
evidence that an upturn has

S.
its

Fiscal-Monetary
actions

to

Moves

help

be¬ activity and to encourage an early
continues to accumulate * in upturn, the Government has used,
persuasive and gratifying volume. in the first instance, prompt and
Much of this evidence has become vigorous monetary policies.
The
Reserve
System
since
available since the preparation of Federal
"The Summary Report of the Eco¬ October 1957 has reduced discount
nomic* Situation" by the OEEC rates,
reduced reserve require¬
ments, and utilized open-market
/Secretariat.
The decline in activity has been operations, thus substantially in¬
creasing the volume and avail¬
relatively moderate and neither
ability of credit and reducing its
as deep
nor as widespread, par¬
cost.
The drop in interest rates
ticularly in its international reafter last October was one of the
percussions, as was feared by some
most dramatic in our history.
observers.
The outstanding fea,

The effectiveness of these meas¬
by Ambassador Burgess
before the O. E. E. C. Ministerial Meet¬
address

ing, Paris,

France, July 28, 1958.

ures

is

the

financial

seen

in

the

response

markets

to

Beautifully Bound Set of
Commercial & Financial Chronicles, 1920-1945

of
the

in

confidence

for

son

i

n v

.b

*7 "■
develop¬

of
thel
estmentl

nm

-k i

n

g|

/ house. / T hr
office of Pres-

trade in

-

led to suggest!

ideht 4ias

not

fill.e<

been

The

Z'since

re¬

tirement" oJ

Z/Pierpont, VJ
Davis, Dec. 31 j

City

York

New

it,

to

? tion

„

in

addi-

1956. In

stuart f. Silloway

expenditures in the U. S. are well^ v
maintained, as has been the case '

./^/>|^Pae)fi^:Nprth^'est;: Z

Our

exports,

on

the other, hand;:^';/*Pi46^Zto his becoming

Presided

be more sensitive to cyclical
abroad. 'After,, re-

may

fluctuations

limited

The

pros¬

economy

the

of

nature

decline, the evidence of renewed
upturn, the determination of the
Government
aimed

to

countering either over-

at

International Transactions

briefly to our trading
with other nations, the
outstanding characteristics of the
turn

To

position

States

United

balance

-

of

pay¬

-

with the rest of the world

ments

throughout
been

the

ports

at

this

have

downturn

maintenance of our im¬
a

relatively

increasing

the

of

both

of the forces making

high

level

of

M. H.

Kuhn, Loeb & Co., 30 Wall St.,
City, announces that on

will,

it

30

Wright

as

general

the

tional

Company

United

of

States

the pattern
foreign trade,

together with other developments,
has resulted during the past nine
months in a steady and rather

dent

The

of
Morris

H.

Wright

President of that

and is currently

company's two principal subsidiaries, The Protane
Corporation
and LPG Credit Corporation. He
will leave these posts to assume

improvement in the
foreign exchange position of the
his new role with Kuhn, Loeb &
European countries. It seems rea¬
Co. in New York.
sonable to expect that the factors
accounting for this accumulation
of gold
and dollar balances by
With A. C. Allyn Co.
other countries will not have the
a

force

in

reversal

the

months

PEORIA.

with the United States and Europe,

also

in part because

of con-

with

viously

The

survey

Walter

K.

Gutmar

section, whic

new

mainly the fields

consultants.;

Gutman has been with

Mr.

tl

member 'firm
Goodbody & Co. since 1942;
edited Goodbody's weekly marH
letter from 1949 to June of thl
exchange

,

a

culation

A rjrMr-

period in which the cif
increased seven-fold
has " contributt

Gutman

...

^

arbcles ?n

.

.

eluding Bairons ^TheA^}.
J°3™31
3^ ^The Commercit
Financial Chronicle ' and

and

various

times

written

has

on

regular basis for The New Yn

I^rld Telegram & Sun" a

-

He

Taussig,

was pre¬

Day

&

Co., Inc.

paints
in

at

serious

a

art

studio he

New York.

abstract

He

Jac

Ben

KaJ

(Special to The Financial Chronicle)

and at one time was

Doss

FRANCISCO, Cal.—Virgil

an

Elworthy &

on

is now with

Co., Ill Sutter Street.

art

under

salesman.

art for the

sti

studied und|

Tv/orkov

and

and

maintaij

expressionist

With Elworthy & Co.
SAN
D.

in

interest

the

result of declining

portant in their export trade, both

111.

tional Bank Building.

prices for products which are im¬

but

mar¬

Kenneth. M
\Z ZddUioZ to his career
Tyler has become associated with finance,'-Mr.; Gutman lhas
f
A. C. Allyn & Co. In<n, First Namany years actively pursued
of the

encountered difficulties in
their foreign trade and payments
a

(Sosciftl to The Financial Chromiclb)

ahead,

of the flow seems

less-developed areas
outside of Europe have, it

as

a new

weekly

year,

1956,

to

begin

editing

stock

that city from
1946

1

and management

Presi¬

of

s

search depart¬

chemicals, pharmaceuticals, stee|
and electronics, will use "the ser\
ices of outside technical experj

of

Weatherhead

-

Jn ,!^e
g-

11 r n 1

.

Vice

separate

will

Cleveland,

European countries.

establish

a

ket letter.

Na¬

City

Bank

Gutman

soon

associated
with

Mr.

ment and will

a

part¬

Formerly

ner.

e w

will

the

Morris H.

mit

larly notable in our trade with the
in

to

approval of the New York Stock
Exchange, ad

Financial

„•

subject

N

Stock

Exchange.
At
Shields,

New York

Sept.

the

York

Wright to Firm

Wright

Z

York

New

Kuhn, Loeb to Admit

Mr.

:

ciated with the investment banl
ing and brokerage firm oi.Shiel(
& Company,
44 Wall Street,
City, members

was

evolution

for sustained

the United States.

in our ex¬

ports

This

of

strength

vigorous long-term growth in

and

compared with the high
levels of the preceding year. These
characteristics have been particu¬

and the marked decline

rate

economic activity and the

policies

pursue

expansion or recession, and fi¬
nally, the continuing action of the
forces for growth inherent in our
economy—all of these taken to¬
gether add up to a picture of
underlying strength and acceler¬
ating activity.

—partly




man

As long as consumer

in the U. S.

n-|

by|

J o s e.p h P.
/ Ripley, Chair-I

'

-

possible need for revision of
widely held views about
vulnerability of the rest of ?
the world to economic fluctuations

is true,

Edwin L. Beck

,

the

in the longer

in the near future as
run.

the

the American

pects of

The

c/o Chronicle, 25 Park PL N. Y. 7

am

was: a

Shields & Go,

world

Phone REctor 2-9570

i t

love!

unlikely.

Available in New York City—Write or

I

C i t y,

Y ork

Zm ou need

...

but

FOR SALE"

'

certain

contracts have been stepped

same

U

1

63

the

substantial

LOOKING FOR THE UNUSUAL

"0"^*

of Pacific Northwest Pipeline, Mil
Silloway was Vice-President foj
expansionary, and perhaps infla¬
sponding
vigorously
at
times
of
Finance of The Mutual Ldfe In|
tionary, pressures that may de¬
peak foreign demand, They fall surance Company' of .New Yor]
velop in the coming year,
v
off abruptly when some slacken- having entered the service of tha|
The rising expenditures in all
ing of demand appears. This is company in 1933.
these
sectors
should outweigh,
particularly likely to be so now.
Mr: • - Silloway - is a* Trustee
substantially, the further decline
that
U.
S.
exports
face much Wesleyan University, Middletowrl
expected in business outlays for
stiffer competition than before as Ocmnv from which he -graduated
plant and equipment.
We can, the result of the. postwar growth in 1929.
therefore,
reasonably expect a and
^modernization of the produc¬
further improvement in employ¬
tive^ capacity of other Industrial
WaHer Gutman
ment, :• which, with.- rising wage
countries.
•
rates, should mean higher levels
In short, I think I am, justified
of personal income and consum¬
To
in giving you an encouraging re¬
er expenditures. .'/■■
Walter K. Gutman, well-knowl
port on our present and prospec¬
In'summary, there is strong rea¬ tive situation from the standpoint security analyst, has become assc

sustain

gun

*An

•

foreign

S.

U.

recent years,

continued very prosperous, with
high employment and good wages.
The position of farmers, for ex¬
ample, has improved markedly.
The moderate extent of the over¬
all economic decline is shown by
crease^ outlays in; the immediate
the'fact that at the low point this future^ Increased Federal- expend
spring
personal incomes
were ditures, combined with lower tax
only 2% and consumer expendi¬ receipts, have resulted in a stead¬
tures only 1% below their 1957
ily increasing deficit,
which is
all-time peaks.
now
expected to amount to $10
A change
in the direction of billion or more in the current fis¬
economic activity became evident cal year. This is a major factor
in
the
second quarter of 1958. to be considered in evaluating the

our

connection

Ripley & Co., IncorWall
Street/New

of Harriman

Unemployment compensation in
postwar recessions^ our: dp. ^attfeaffiSipley & Co., tneorpohas been extended. Public works
mand
remains strong for many'"^^ has offices in Boston. Phila
programs have been accelerated,
types of imports, notably iood and.,.delphia
Chicago, Cleveland,. Deand steps have been taken in the
marrulacturegrDemand tor indus-.;
highway program and jn mondeiense procurement that will in¬

Output began to move upward
policies we con- again. The preliminary estimate
./■ sider it the duty of government of the gross national product for
to provide an environment con- the second quarter shows an over¬
ducive to economic growth by en- all rise,
despite the decline in
couraging the powerful long-term plant
and equipment expendi¬
tures.
The
index of industrial pro¬
growth forces inherent in our eco¬
nomic system to make their maxi¬ duction increased two points in
mum
contribution
to
economic May and another two points in
June.
The
improvement
was
progress.
One paramount requirement in marked in steel and other durable
this

F,/ Silloway ;-hasv .been

President arid "a Director

elected

private

in

-

up.

in

that

state

determining

and public invest¬
ment abroad has continued large
and is expected
to approximate
S.

U.

ments

State and local

fense

QIIIaui^u Prac

dl IIU W d

Stuart

problems of these countries and
has sought to alleviate them.
Its
lending operations have been at a
high level, and it has supported
the
active roles played
by. the
International Monetary Fund and
the International Bank for Recon¬
struction and Development;; Total

government ex¬
penditures continue to increase.
A number of actions have
also
been taken by the Federal Gov¬
ernment which have the effect of.
increasing total expenditures. De¬

the country have

Large areas of

as an asso¬

ciated

.

Thursday, August 7, 1958

.

Of Harriman

financial

' the

' about

concerned

construction.

tors of the economy.

U.

try,

,

.

tinuing high levels of internal de- Qlllot,l
mand which have found. expres-Z ,OfllaFI;
imports. •*:/ftc».'}*•"
The U. S. Government has been

siojrr in rising

plications for Government-insured
and guaranteed mortgages have
$6 billion in 1958.
increased sharply and suggest a
Looking
back over
further significant rise in future

the international economy;

before the

Government's program for

The

encouraging housing construction
through increasing the availabil¬
ity of mortgage funds has had a
noticeably stimulating effect in
this sector of the economy.
Ap¬

official optimistically assures

volume." N.A.T.O.
Representative Burgess stresses our governmental determina¬
tion to counter either overexpansion or recession and recapitu¬
lates what we are trying to. do to meet our responsibilities in
accumulate

corporations and State and local
governments, taken together, dur¬
ing the fifst half of 1958 exceeded
the record high volume of such
transactions
during
the corre¬

sponding period of 1957.

Organization for European Economic Cooperation that our
recession has ceased and that evidence of an upturn "continues
to

demands for new capital.
security placements In¬

heavy

The Economic Situation

<

.

(508)

employed

He has writN

"Nation," 'The Ne

Republic" and "The Arts:"

Volume

Number 5766

188

The Commercial and Financial Chronicle

...

Industrial

News About

Banking Division, Mr.
Kennedy is associated with Pull¬

stock dividend and from
$5,000,000
to $6,000,000 by the sale of new

man's Cashier's

stock, effective July 23. (Number

Division, and Mr.

Griffin, who is head of the book¬
keeping department, came to Pull¬

Banks & Bankers

last

man

been

.

October

after

Assistant

an

of

shares,

at

Kerby H. Fisk, Chairman of the Chatham Bank.
Before that he
National City
Bank, New* was with Continental Illinois.
York, announced the election of

RichardL S, Perkins

Vice-Chair-

as

of the Board.

man

•„

•*:

The

of

John Ritchie Kimball, a retired
I Vice-President of the Guaranty

;

%

'i'

v

Bank

Forks,

the

creased

Trust Com¬

Minn.,

Vv''

Thomas

dent.

Mr.

J.

Shanahan,

Sandleitner

(charge of the bank's
•

*

■

formerly
Lawrence

its

was

York Stock

common

a

a

&

capital stock

Street.

Mr. Fefferman

partner in
Sons and

with
Mr.

29

■

South

Eldredge,

Shields

was

La

Salle

was

form¬

Tollman

Carew Jr. has joined the staff of
Hornblower & Weeks, 436 Con¬
gress

With Harris, Upham
(Special to The Financial Chronicle)

Homsey

(Special to Tiie Financial Chronicle)

BOSTON, Mass.
Stein

is

Pont,

Homsey

now

—

Norman

affiliated

&

Street.

&

Crut-

with

Now With du Pont

;

Co.,

with

BOSTON, Mass. — James K.
Gray is now connected with Har-'
ris, Upham & Co., 136 Federal St.

J.
du

Siemens Adds to Staff

Milk

31

•

Stetson,

Street, members of the New York
and Boston Stock

New

Aug.

away

have

tenden, Podesta & Co.

member of the

Exchange.

Winslow, Cohu &
City, passed

Co.,

Co.

H. G. W. Parmele, a partner in
York

curity
erly

passed

H. G. W. Parmele

at the age of

Shields

R.

was

4

61.

Exchanges. He

(Special to The Financial Chronicle)

PORTLAND, Oreg. — John R.
Daley
is, now
connected
with

formerly with Palmer, Pol- Frank Siemens &
Associates, 1720

lacchi &

Co., Inc.

Southeast 38th Avenue.

Presi¬
be

will

in

Citizens

new

I office'.:

one

Robert

become associated with Union Se¬

\U

from $4,000,000 to $5,000,000 by a

pany, New York, it was announced

by

was

Bishop National Bank of Hawaii,

Vice-President, of

a

Federation Bank and

closs

New

v ■

,

Auchincloss

]•}'I-

S?.:Vis

v

and

man

Aug. 3 at the age of 76 fol¬
lowing a brief illness. Mr. Auchin¬

Bank of East Grand Forks,

'

$20.).

(Special co int Financial Chronicle)
PORTLAND, Me. — Martin J.

CHICAGO, 111.—Harold Feffer-

300,000

away

J.

Joseph T: Sandleitner has been Honolulu, Territory of Hawaii, in¬
I elected

Russell

time

•

—

'j

Harold C. Richard, banker, died

(July2& atthb-ageof
lard

started

with

his

banking

State? Bank

the

career

and

-

Trust

./;

(Company

of New York.-'He was :
(elected President in 1919. Wheal h

(State

Bank merged -with Manu¬
facturers Trust Company of New
|Yorkj he served as Chairman; of »'<■.
(the Board, a director and -member' •
|c>f' the trust committee.
The election of Wayne;W. Wil-

;

[sop, Jr. as a trustee of the Bush- 7
|wick. Savings J Bank, Brooklyn, ;
,

has

Y.,

been " announced

peraldR;' D>o* man

by

.

;

President;;

*

.;

'

'•,

v

•

Central!

Bank

bany, Great Neck, N. Y.
approval

to

"-i"'■ '.

1:

<

<

Com-

Trust

and

given

was

the

increase

capital
$1,814,590 consisting of
118.1,459 shares of the par value qf/.i

l>tock

>.

from

|j>10
each, to $1,869,030 consisting
ht
186,903 shares of the

l/alue,,

Ilirectors

'

both ; banks

of

(approved

>

pah,-

same

I

";1("

-

have;

,

plans

Ivhereby County National Bank,,
bliddletown, N. Y., would absorb

y

National Bank of .Newburghy N.,}!'..-- '
stockholders will vote on the prp-j-W;'

posal • in; separate meetings :;Sept.■17.

James

Growley,- President of the

IStfite; Bank of Randolph, N: vY

HI;* Frederick;; H a gemahn;r'Jr,"
of the RocklahcLAtlas

Presicleni

|\Tational.

of ' Boston, Mass.,

Ban k

mriouneed the promotion of Rieft-I
F. Brackett of Melrose from

jrd

assistant-''

Cashier'

to

Bracket! will

Mr.

Assistant

-

continue

his

ictivities in the Commercial Loan
Jivision
lank

in

and

relations

laine.

■■■

Correspondent
State

the

in

there's

of

more

to Cities

Service

i"}:

■■

'

'

v,1-

Frank M.

#

i-

Vi-'v.N

;

than meets the eye!

Knight, retired Senior

rice-President of the Continental

Illinois National Bank
Company
iug.

3.

He

was

111.,

Central

the

I11 Chicago in
Ihe Illinois

died

68 years old.

Inight began his banking
Ivith

Trust

and

Chicago,

of

Trust

Every

Mr.

Continental

clears this traffic. The
tower controls the

as

day

Vice-Presi-

a

lent.
*

At the
lan

«

&

|vho
In

named

was

filbert

J.

Vice-President;

Rynberk,

Assistant

O'Toole,

H.

who

became

Vice-President,

and

Jlobert

E. Kennedy and Thomas
Griffin, who were both elected

Assistant
The
nth'

Cashiers.

four

have

Pullman

associated

been

for

?ight and not quite

five,
one

eleven,

year,

re-

[pectively.
Mr.:V0'Toole

Pullman's

is

Personal

in

charge

Banking

of
Di¬

vision; Mr, Rynberk is with the




To assure an

scenes.

city within a city, Grand
Central Terminal includes

A

Robert

three a minute during rush

hours

Serving travelers is also an important

l-ago, III., Board of Directors, four
ptaff members received promowere

world's tallest subterranean signal

arrivals and departures of 500 trains a

Cities Service. Here, too,

Savings Bank, Chi-

lions.

They

...

of the complex organization which

...

trapks fanned out on two levels of a 79-acre

*

July meeting of the Puil-

Trust

Grand Central Terminal, New York City.

Not many are aware

Company

1915. He then joined
Trust
and
Savings

Bank in Chicago and in 1929 went

fo

than 60 million travelers pass through

year more

the train gates of

career

some

34 miles of

track,

over

underground

80 shops and eat¬

than 300
phone booths, an investment
center, a movie theatre, and
ing places, more

two art

galleries.^

moving on 78
yard.

responsibility of

the biggest job is done behind the

unfailing supply of quality petroleum

products requires a vast

producing, manufacturing, trans¬

porting, research, and marketing organization.
Hundreds of millions of dollars flow annually into these
far-flung operations

...

and many thousands of employees

share the

job which extends into four continents. It

costly

risky

the

...

...

arduous

,

.

.

is

but only in this way can

petroleum needs of the public be met-and petroleum,

next to

13

Joins Hornblower Staff

(Special to The Financial Chronicle)

C. R. Auchincloss
C.

at

\.i'

value

par

Cyrus

19. His age was 77.

V

outstanding

Minn.,
changed its ticie to First National

.

'•»

National

Grand

effective July zi.

Trust Company of New York, died

I July

Minnesota

East

shares

Two With Union Security

having

Cashier

First

I

(509)

food, is the most vital product in America today.

The Commercial and Financial Chronicle

'

14

firct

>
_

_

Mifl VA9V
IfllO"' I Cfll
experienced

DHS1I1CS9 VUftlUUft

Now, what I want to do next is

in

to take a closer look at the key
equip- sectors of the economy and try to

penditures for plant and
ment, and in consumer expenditures for autos and appliances.
What lies ahead?
~

.

give

Notes Reversal of Business
Psychology

makes the wheels go round. There
is no shortage of money — the

Last March and April, the out-

looked

look

The

dismal.

pretty

clearer picture of the forces

omy is spending — spending by
business, governmental units, and
consumers.
It is spending
that

.

_

a

at work.
The critical factor in the econ-

-

■_

,

,

i

■

j*

business ex-

home construction, in

later

1959.

ili*4lAAlF'

RuCIMACC

decline

sharp

a

f<blt

r\(,rto

Continued jrom Jirsz page

.

.

Thursday, August 7, 1958

.

(510)

u"

--

—

this

on

Clearly,

in

and

year

sons

for the decline in spending extension of payment

in for durables:

turnaround

a

capital expenditures is some dis(j) The drop-off in housing,
Of course, a war scare could
tance ahead.
,
>
which affects spending for furni- spark a consumer-buying-bulge.
The only comforting element in :lure and appliances.
Barring this, however I would say
the picture is that the rate of de(2) The rise in prices of food that we cannot count on a conciine jn plant "and equipment and services, which leaves con- sumer spending wave to spur respending is expected to slacken sumers less to spend on "luxu- covJry- The inltial stimulus will
over the months ahead, so that the ries."■probably have to come from other
drop in this, sector may soon be
(3) Unemployment, or the fear spending sectors, with tneir imoffset by the rise in government of it—when people get jittery, the Pact 011 general> employment and
spending—which I shall discuss first things affected are the "big incomes.
-'V
rV
further on.
;
ticket,? postponable items.
Government- Snendiiur Definite
The drop in piant and equip^ (4)
Many -consumers had apRise "
* '
ment outlays is the basic cause of parentiy gone rather heavily into J
■;
this recessi0n. There are grounds debt, and have been hesitant to
This brings me to a fifth catef
believing that we can have1no^ake
more instalment debt.
gory j:—
of spending—governmental
"M on
This is the one sector
.

-

-

-

-■

•—

--

can

„

has' ri^eh^4"points "since ly "larger today than it was a year
ago. The question is, how much
wktasZasharp rise- spending will we do with already
and
this usually augurs future existing
money or with
new
index-

Manufacturers'

expansion.

shown

have

orders

iZT bXhter

hriTnemplSy!

T

has

situation

ment

new

slight

very

a

taken

mild

a

turn for the better during the east

months.

two
ha,

dnsnitc

nrofit ratios in the first

nnrt

production as goods were supplied from stocks instead of from

on
i,nc

«,,•«,

aii

iori

ir,

are

ia

•+

it

course,

from

move

'<

cant

be

could

lhere

talse

to

ways

that

plateau

a

a

two

are

looks

au
0
m~^>UP °k down.
be sure its a bottom until

Rey

barometers

business

ty.ius was

punctuated.

inventories

business

have

4%

about

given stable or rising readings tor
©i ine

ratio

The

oy a

from

off

arc

last

year's

only
peak.

manufacturers'

of

in-

yentories. to manufacturers' sales

It has actually risen

[s very high.

©umper of iaise rises which, on ^ince last fall to an all-time peak
each

occasion,

construed

were

heralding

as

generally

in

recovery.

sales

Also, we must allow for the
probability that some of the im-

proyement registered in various

business

sents

this spring

series

repre-

ol business from

carryover

a

March,
were,

due to the fact that
dropping faster than

stocks.. Since then it has flattened
out.

I would expect that inventory

liquidation may continue for a
while, though probably at a slack-

tampSTV
unnusuXeSsSeveS
nampciea
oy
unusually
severe mosTo/fhe
most ol the liqLX^has
liquidation has
hSprobaWv

?

ii

had

a

,-i

May

.

.

mipact puichased paits. A good clean-up
June

and

Aoth^trfm

T
?
i
turnmed much further. But manufachirers' inventories of finished

qualifications, we
concede that there are strong

can

indications

xuiu

that

uit;

uut

the

fcoods

downward

pus&iuiuty

VI

a

does seem to have reached

plateau

of

torn

and

sort

some

llfMiinrrl

cjmo'

for

spell,

a

will have

or

whether

54.

there

will

be

sharp pick-up later this
We will know
In

a

or

really

July, the seasonal

summer lull
in, and the seasonal decline
may
be somewhat deeper than

usual

©nd

this

year because of wideshutdowns for vacations

auto

model-changeovers.
mid-September before

may be
©£

the

come

slump.

m

auto

the

pre

It

the

market

Christmas

-

Uncertainty

A

Tf

rp'oprpiKscinnc

in

huJnpw

ant^iiiation

hicher

nrices

to

because
now

Z

lav
nn

«

rnnenmi!>f

nf
ao

thi«s
nnp

what will

APfh
h!\a

anH

wall

....

bonct-j in rfpfpn^p cnpnhinu

have

thfwpr
I

^nnomvnn««ihiv

both

^e^'r ^

t

chin

rfo^ihilftv aciai
can

nrprhrX

hannpn

PP




,

in

has been surprisingly resist- just ended.

come

In fiscal 1959, it will

bad

,

year

riah+

thn

d"

i-JgU£?S m51C+u

3

slide through the rest of the
with total outlays for the

3aai,

However

the outiook for housing is clouded

f"

,

1

t

_

the .decline

in

the rise

in

formations and

DeoD]e reaching marriage-

has theremained
apathetic,
ment of orders, by itself, has a
chances of
a sub- major impact on business.
jtanUal upsur«e.ln; buying, par- m addition to heavier defense
ticularly of durables, which would spending, we can look forward to

able a^e and because of the de-

^ve the economy an independent rising. Federal outlays for public

low^mber

o£ ** relatively
youn{J

of.

yn •
the marr|age rate during
recession
(The rate for April

^

!®0So represent'

jnr£ (he eighth consecutive month-

wil

when

nick

in5 the

ui)

the

big postwar baby
to reach adu((hood

begins
then

..

however

'

.

'

residentiah
.

_

(ha^Aonsum ei"l ncomer"andTh rs
nnrl

Hxp<?

hiVhpr

with

f.0imlpd

in

r.

areas

new

starts
,.

as a
.

„

•

,

r>

n

*

•

Do,,bts Ma,<S^n,er

111

coiisumer

ways;' and

paiucuiany

uuymg,

buoyant force.-

housing and slum clearance; rural
eleclrification; reclamation and

M and harbors projects; high-

Upsurge

other

public

works.

ously-aulhorized programs: in ad-

of durables,, which would bring a dition,: many new; projects-have
rather speedy recovery. .They been authorized by the Congress
argue tbat personal incomes are. as anti-recession measures. Finalt»Ieino'
fVmf
nanli
r

a

_i

i_.

nnncnmm«

ii

bi^ depression have subsided, farm price

they added-over $3 billion^to their

homes

bank savings aicounts in the" first
ft' a \®cord mcr^se
,and
.

i.1

-

„

props "for

this

"year's

crops,

Fiscal Spending and Deficit
^

.

.

Problems

The danger in this situation is,

that-there has been some reduc- u t if pidvate spending should
tiort in outstanding instalment ick up (his fall or early next
we may take a.look at debt' which*, has put many con*
lwe WQuld haye 'super.
spending for goods and turners in,a
j?, increase jinposed upon it a great increase
Consumer spending has ^bei1' purchases on credit.
government spending which
.

V

Stable Consumer Spending-*
Fourth,
consumer
services.

been remarkably stable.; Consumers
all through the recession per(od bave continued to

buy goods

This reasoning strikes me as could exert inflationary pressures
over-opfimistic. As far as instal- on prices. The Administration has
ment credit is concerned, it may been keenly aware of this possi-

noted that outstandings are bility and has been trying to ward
.actually higher today than a year 0ff s(in further spending schemes
ago: In the first 4 months of this pending in the Congress. In fact,

aild services. Retail sales fell off be
slightly in February
April -June

But ' in

and

March,

they:

were

♦

,

+•

-,

»r

nf

to? $30.7 billion as about the same as last year.-This
^rS
}
is bideed remarkable when you
of
17<7
fh^ls wo,u,d,be a dl0b consider that the auto industry
World' Wnr tt^ ^ors^ drop since had its poorest first half since
Th
Ta
n '
^ 1952 and that unemployment has
e sbde will continue into next stood at around 5 million, *
f-rt31*'
Conference Board's
It is> the "mix" of consumer
Uef °rlne-^v cap
appropria" sPendmg that has been an upsjetJ10*11?business, and on appro- ting factor. Where consumer
Pnations backlogs, conduce to this spending declines have' hurt the
New appropriations economy m recent months has
+fl v?uy s p?7 ll} tbe Hrst quar- been in the field of durable goods.
lAaAr6 SeVAe+nJJ? straigbt Quarter- The figures show that consumers
lo decline. iU the end of the quar- have been spending quite a bit
appropriations backlogs were less on durables, more on nondur?1%-bel°w a year earlier. The full ables
and services.
impact of these cutbacks will be
There have been
•

u

n

mav

onnrritv

m-nwinj*

"Pwai'.d rush?-:-;';.

tbat consumers have built up big
casb savings in recent- months—

o«t«to

ronl

mctronolitan

aie

nnur

_

coming

«

While total spending has held spending has held rather steady
steady, overall, it has not so far, but it will soon increase
shPw» any bounce as yet. Con- heavily. Of course, we must not
sumer interest in autos and appli-. overlook the fact that the place-

building costs. Family formations amies
uaVP droDDed 0fc sharnlv because What

consider business

realised eaily this

of terms on

SSdiS and applian^

.

panV* weie cut back more than

and

rush

The ronllv hiV

bv

7V/TI

spending for plant and equipment.
The latest government survey indicates that capital spending pro-

year

international^ituatfAi

ae

-

1'antf »»« Equipment Spending

new

International Situation's

sharn

ILa

couraged
and
could
easily
be
reversed, and this would
give
industrial production a lift.
j

w

hit

rise

months,

coming

in

strong

Until
II

aai t

we

should develop.

some

little

the end

on

November when the

models

when

but

cut

and that capital outlays will conto decline for longer than
The real test will had been expected. The govern-

have reliable evidence

a°fur£

b"I push is coming from

ity. These have prevented a drop quarter of this year, it was actuin personal income, and have thus ally $800 million lower than in the
government-backed mortgages has provided an important bulwark first quarter of last year. But if
undoubtedly had much to do with for the economy. So long as in- you look at Defense Department
(be upturn.
comes remain strong, there is little orders, you see a spectacular rise
An
nntnrn
in
hmmin"
would chance of the recession's gaining —$2.2 billion in the 3rd quarter
,0 Sffset thc continuing dron
momentum and^^-feeding on itself, ol" last year, $3.9 billion in the
and eouioment'sDending
A few other points should bee4th quarter, $4.6 billion in the
V,a
^
.
*■ made about consumer spending, first quarter of this year. Actual

(hiue

sites

eets

spread

But the

.

The recent relaxation

year.

in the fall.

more

ofleri.igs augur

The Housing Outlook

«««formations

ol'

we

slow, gradual rise,

a

whether

been

Wa-V-

be

to

™

^situation an*ta^le *ecess,0"'1
A; Pr°bably eom,e *? f 8-^0 billion;
a substantially different situation
There arc,.several reasons for
The important thing;, to note
than we had in 1948-49 and 1953- (his. There has been a drop in' about the Federal spending is that

continue: to decline for some 6()?s
months aftei recovery gets undei cro'

a

c?l 4 rfLflxr

pa

have

«i'

re-

newal of the downturn, the econ©my

long

diffc

iu

.

.

these

With

beeu
becu

^mract nurehased0.'JS

some

Ti/r

April,

tie

upon

a'

is the excess capacity tnat nas

new

nsv

a

bottom,

be,i be-

to

plans

income from wages and salaries, the increase has hardly been felt
but this has been more than off- as yet; budget expenditures in the
Third, housing. Private nonfarm set by increases in income from early months of this year were
]10Using starts dropped steadily other sources—a rise in farm in- actually running below the corfrom last August to a very low come, an increased flow of social responding period of last year,
rate ln March. Since then they security and veterans' benefits, The full impact of the defense and
have showed a very encouraging and a rise in unemployment com- other spending projects gotten
rise In May and June they ran pensation payments which makes under way since last fall will not
at an annual rate of over a million up for about a third of the loss be felt until later this year.
We
a year. Moreover, there has been of salary and wage income.
are still in the ordering stage, and
[n business.
an
upsurge in VA appraisal reHere, we see the effects of our there is a lag before the effects
There is no clear evidence, howqUests and applications for FHA so-called
built - in stabilizers— are felt on actual outlays,
ever, that business will soon start commitments,
and this suggests farm price supports, unemployTake the defense spending picbuilding up inventories. Total (bat housing starts should con- ment insurance, and social secur- lure, for example. In the first

n

business

of

used

™

a

A"^. dowa ,:State and local, spending for,
through February of this year construction of roads, schools, and
pe^onalinTOme before toes fell so on, i^sUU on the rise;. Heavy

Svendi"eyear

Production. Inventory liquinhnlm?v
There
has
been
re" Nation has continued into the secKiTr^nee of ontimism—a "rowing ond garter, but at a somewhat
eonviction that the worst of the slower rate.
.
■;
filumn is over
Most of the anSome expect that inventory
alvsts
savine
now
that
we
liquidation wlJ1 be reversed soon.
touched bottom in Aoril and that
They argue,. thati excess stocks
business has now levelled off
have been eliminated and that this
Ac
u
I
has Paved the way for a PlckllP
Of
rovorsal

barn

it

than

.

on

mg has received a ude j .
ggo—in the-face of substantial Federal Government spending,
One of the things that will de- unemployment., n'-.-v
Total Federal spending came to
last fall. In the first lay a revivalc
In other .words, personal in- about $72 billion in the fiscal year

- a record decline
a very heavy drag

Tbls exerted

auar-

tat busi-

doctrine hadP
S lS

thG

vpar<?

grow .up

Take, first, business spending
for inventories. Inventory liqui-

of $9 billion

ter

•

£ad

count

-rd push. ;At the
personal income has fallen present time, it is the biggest exmuch less than production. From pensionist factor in the. economy.

Busi,,ess Invcnlory

quarter, it was at an annual rate

verv

some

about corporate profits

news

bank

money created as a result of
credit expansions?

dation started

market

stock

The

Hcinff

hPPn

dark

*

The average factory work-

Anril

terms on

• new cars.

.

,

several

rea-

year,

outstanding declines only a if is reported to be looking hard

bit more than a billion — only for ways to cut spending in fiscal
about 3%. - It) may be doubted i960. We now have huge longwhether this has paved the way range spending commitments that
for a major upturn in consumer could cause a further rise in Fedbuying fof aurables. .
eral spending in fiscal 1960 and
\ Much will depend on two fac- 1961, and it may be very hard to
tors: (1) what happens to hous- return to a substantially lower
ing, which affects demand for level. _ of spending in the. near
furniture and appliances, and (2) future.
tlie /reception accorded the new
On the financial side, the rise
1959 auto models in the fall. In in government spending will pose
this connection,-it is worth noting very serious problems.. The fiscal
that the auto makers plan no im- 1958 deficit was $2.8 billion, and
portant style changes for the new it was due principally to a dropmodels. And there appears to be off in tax receipts rather than to
little

possibility

of

a

substantial

higher

spending.

In. fiscal

1959,.

Volume

Number

183

5766

.

.

.

t

The Commercial and Financial Chronicle

(511)

spending
»

will jump, and unless materialize, we can almost cer¬
pick up. the deficit could tainly anticipate heavy pressure
to $10-12 billion. If the for new Federal spending schemes

is

the

and tax

be

the

considerable

a

The Administration

has

in-

way.

Let

us

gether: (1)
run-off

though at

to-

probable further

some

of

pieces

put the

now

:

business

inventories,

reduced rate; (2) an
'almost certain further decline in
a

spending for plant and
equipment, continuing into next
(3) some probable rise in
housing outlays; (4) a continued
high level of consumer spending,

recession,
little.

year;

with

substantial

ment

:

It

the

year

has

levelled

off

during

contracts

negotiated

in

earlier

years,
and these are bound to
show up in higher prices sooner
or later.

In

prices

went

1953-54,

down

a

they remained

second

price

rise

quarter.

index

has

The

consum¬

continued

to

right

down through June—a
rise of 2.9% in a year.

The effect of anti-cyclical
poli¬
cies and the
wage-price spiral has
been to produce a

This is

by

productivity

gains.

Even

in

this year of recession, workers in

ther

many

continued to rise.

increases under the provisions of with

July

industries

are

getting

wage

we can

of rising

pretty stable. This time, they have
From last

unique in the history of modern*

capitalism, and it is
see

very

increase

in

travel along this road

debt, profit squeeze, and

price inflation.
a

set

of

We

confronted

are

conditions which

is

We would do well to do

problem

long

which

after

will

the

be

present

come

with

up

there could be

a

some

the

plus

very

This

Forms Carroll Securities
(Special to The Financial Chronicle)

BROOKLINE, Mass.—Edward
Carroll is

now

of

name

Carroll

Offices

pany.

Securities Com¬

are

located at 1733

Beacon Street.

.

the

is not likely to decline
further, and could show a modest
economy

improvement
•

during

the

fall

months.

Discounts Rapid Recovery
On

•

the

other

anticipate
L
<■

'•

such

as

economists
unless

hand, I do not
sharp upward swing

a

business

some

are

the

now

predicting,

international

situation

should deteriorate further.
•

.

which
We

prevailed

have

us

a

1

late

until

rather

a

before

peaks of
.

I think

it may take some time to get back
to the full employment conditions

itravel

•

and

men

long

reaching

last

to

boom
take

may

to do it.

year or more

have said

the

It

year.

1957.

road

.;$529,820,000

that this recession

'^is quite different' from the

.

-backs

of

1948-49

set¬
1953-54, in

and

that it is not merely an

^'•readjustment but the

earnings: $5.9Jf.

inventory

result of

a

conjuncture of deflationary develr:

It

opments.

different

is

also

in

two other important respects.

First,

;

the

two

earlier

-

•

"

still

in

na¬

Long-time research investments

rewarded with new products in foods, feeds,
chemicals, vegetable oils, and electro-mechanical activities. Reorganized marketing

c

catching-up
period.
We had inherited huge
pent-up demands from the 1930's
and the war years—demands for
housing, consumer durables, plant
was

V

company's history.

postwar

recessions occurred while the

tion

share

per

At the close of its third decade, General Mills, Inc., is
happy to report to its share owners
and employees that 1957-58 was the most successful year in the

;

a

were

'

strengthened consumer demand for General Mills products. Most impor¬
all, the outstanding efforts of the people of General Mills provided the drive

programs
tant of

'

and
•

ects.

equipment, and public projExcept for public projects,

these

backlogs now appear to have been largely filled.

'

■:

Certainly, the underlying situain housing, consumer
durables, and plant and equipment

'•;

is much less favorable today than

V

tion

it was in 1949 and 1954, when the
tl rise in spending in these sectors

paced the recoveries..

-

essential to the year's achievements.

so
•

•

demand

*p

*•

\v

v.'.-

i'

-

•••:*•

■

The year was

>r*'

'•

'

businesses,

and local

governments

is far less

favorable

than

five

it

and

was

ate

debt

or

10

The Divisions of General Mills

The
Year

has

risen 266%, while
personal income has
risen about 90%. The ratio of such

Chemical Division: Fatty

1957

<

It may be doubted, therefore,
whether the underlying recuper¬
ative powers of the economy are
as

h

strong

today

Goods and services

Wages, salaries,

It

and retirement benefits

that

we

are

likely

to

,•? bounce

back

rapidly

as we

^

to

boom

levels

take

much

longer

Earnings in

Fears Inflationary Stimulants
The great
danger is, that
in
.their impatience with unemploy-

,/^'ment, the

dollar of sales

Net

earnings—per

share of

common

Taxes per share of common

stock

stock

land, buildings, and equipment,
Working capital^
-'

',

and household

,

Stockholders' equity

.

economic stimulants.

ly expected fall

a

dose of

If the wide¬

upsurge

does not




'

*

-

_

Grocery Products Division: Package foods, flour for household

74,670,699

useT

specialties.

18,616,908

Institutional Products Division: Baking mixes and other
products for

12,235,111

hotel, restaurant, and institutional

use.

7,948,259

Mechanical Division: Electronic and electro-mechanical

4,286,852

and instruments.

2.3ft

equipment

Refrigerated Foods Division: Refrigerated ready-to-bake biscuits
for household

$4.88

use.

:

8.16

85,531,908
71,255,023

136,100,981

political witchdoctors

tf,will resort to too heavy
z

of dividends

Wet earnings—per

it did in the "good
old days" of the "rolling adjust.

excess

paid

feeds, feed stores.

Bakers, and export flours, durum products, oat

products, grain activities.

422,178,959

Earnings

Dividends

%' this time than
.

Net

as

Full-scale revival—in the sense of
full - employment

2. ments."

'

:

did in 1949 and 1954.

recovery
to
levels, could

Taxes

•

to
•.

J'

purchased

in

assume

Flour DftfciefM

depreciation

were

they

Feed Division: Formula

from others, and amounts
set aside for

nitrogen compounds, polyamide resint*.

adducts, vegetable sterols, and other products.

$527,701,677

products and services

the earlier postwar recessions.
Would be a mistake, I think,

as

amine

Received from the sale of

debt to income has risen from 38%

f to nearly 74%.
"

'

'

President

disposable

.

•

state

y^ars^go. ^Sipce 1946, for ex¬
ample, individual and "fiOniJOrpor-

•'

m</.

Second, the debt position of in¬

dividuals,

>

marked by another innovation: publication of General Mills' annual
report as a 20-page illustrated supplement in Sunday news¬
papers in six major cities. If you wish to receive a copy,j write
to Public Relations Dept., General Mills, Inc., 9200 Wayzata
Blvd., Minneapolis 26, Minn.

'

-

s

Oilseeds Division:

proteins, vegetable

gums.

Protex, S. A. (Mexico): Steroid intermediates used in manufacture
of

Fiscal years
ended May 31.

Soybean and safflower products.

Special Commodities Division: Vitamin concentrates, wheat starches
and

pharmaceuticals.

Habib-General, Limited (Karachi, Pakistan): Guar
cent owned

by General Mills)

JE.

vestment business under the firrtj

offset

that

mean

>

conducting his in¬

during the rest of

would

wo

solutions^

,

'

•

u»

hard day oil

govern¬

will

factors

ones

with

recession

reckoning ahead.

spending.

the minus

hard*

has passed into history. Unless

Clearly, there are
downward forces still at
work, but it seems quite likely

that

some

thinking about this longer-ranga

some

"1958.

hard t©

what the denouement will he.

,

the
er

this

confidence

as
a

■H;

possibility of some increase
improves; and (5)

a

1%.

of

comprehensive
price index rose about

growing dis¬
tortion of cost-price-income rela¬
probably no better tes¬ tionships. We have a situation in
timony than this to the continued { which costs are too
high in rela¬
strength of inflationary forces in tion to
selling prices — as evi¬
our economy.
The forces are two, denced by the
increasing squeeze
basically: (1) economic palliatives on profit margins—and in which
to
counteract
recessions, which prices are too high in relation to
on.
V,V-t prevent prices from dropping dur¬ the incomes of many segments of
Which brings me to the matter ing periods of bad
business; and the consuming public. These basic
of the purchasing power of the
(2)
the
persistent
tendency
of maladjustments will probably be
dollar.
The behavior of prices in wage rates to rise in bad times
as? intensified
in the
next
cyclical
this recession has attracted a good well
as
good, irrespective of upswing.
v
deal of attention.
In the 1948-49 whether the increases are
I
do
justified
not know how much fur¬

business

5

cuts.

managed to keep the lid on
fairly well this spring, with the
crease in the money supply and in
help of some improvement in the
banks' holding's of liquid assets. business statistics and the roseate
This could give rise to a problem predictions of its official optimists.of excessive liquidity which would If the optimistic anticipations are
make it extremely difficult for the disappointed,
we
can
expect
a
Federal Reserve to restrain infla¬ spate of pump-priming measures
tionary
developments
after
a which could lay the groundwork
broadly-based recovery gets under for a really serious inflation later
will

result

?

April

wholesale

up

financed; through
commercial banking system,

■

to

government's

run

deficit

\

down

revenues

1$

gums.

(Sixty per

The Commercial and Financial
16

Chronicle

.

.

Thursday, August 7,

.

1958

(512)

of

the

so

THE MARKET... AND YOU
Regulatory authorities
through with their longawaited boost in margin re¬
quirements this week and at
momentarily interrupted

least

the

stock

market's

latest

that the issue

new
was

snap

models;
able to

.

■'

pass their 1929 record peak,
which is surface indication

'

der way.
if,

In the

break. In fact there was one
sequence

that even the mar¬

Ahead

of the News

having had to trim its divi¬
By CARLISLE BARGERON
dend early this year, is still
age, that of the railroads is in
It must be quite
obvious by ever since we have been in there
no
position yet to offer any¬ available at a yield that ap¬
and prepared to withdraw under
now that when the United States
thing approaching a test of its proaches 5%, which is high
slightest
justification.
We
accepted
the mantle of global the
1956
high, some 40 points lor a quality item. In part due leadership which it seems to have been, apparently, scared to
death that if we shot an Arab or
away. And, as a
matter of to its pared payment, it also have done so
ran
over
a
youngster
on
the
fact, the rails never did sur¬ lias been available at a lower proudly at a

,

spared anything approaching
a
debacle, or even a bad

Washington

new

price tag than its 1956 low and
nearly a score of points under
tance of the all-time peak.
&
&
that they are a laggard group last year's high.
if.
%
%
in anticipating, as the senior
There
was
some
selling
Electric Auto-Lite is also
when the cash requirement average seems to have done,
that^ the
business recovery,
was boosted from 50 to 70%
dependent to a large degree
by the on the success of the auto
but except for a few cases it perhaps accelerated
Mideast situation, is well un¬
makers so it, too, is an ultrawas moderate and the list was

reaching dis¬

climb to within

From

highs going right
through the margin interrup¬
tion.
But
National, despite

keep its

By WALLACE STREETE

came

to

makers

auto

back with their

'

if.

■

case

if.

of the individual

rails the action of the average
is

not

is

more

than

mere

expense

Eastern

pundits of the air and the

Our

they so widely

however, take the view that
our
government has no policy.
Our State Department, they insist,
the Administration, has no "bold"
or "imaginative" policy.
You ask

pen,

syndicate. Be¬
gov¬

try¬
Car lib »e

to

done.

been

col¬

umnists which

ernment,

saying what has

not

am

done, landing of troops in
Lebanon, is not w hat should have

press

cause our

I

But
been

our

the

and

words.

ening

letely

comp

threat¬

only sputtered a lot of

has

taxpayers, it
reckoned
without

jeep, that that great

a

military power, Russia, might in¬
tervene.
The fact is that Moscow

to the

American

hope. Un¬ ing

oaigerun

exer¬

cise this lead¬

oddity.

statistical

a

cyclical issue and could show
a sharp recovery if autos sell
actively. But in this case there

beach with

tremend bus

if

them

der a program of disposing of
gin boost couldn't interrupt—
ership, seems never to be able to
Kansas City Southern, yield¬
some
of its equipment and please
the recording of better than
these
editors
and the
ing well above 5 Vi %, held its properties, Electric Auto-Lite syndicated columnists.
a hundred new highs that has
The wanted us to go into Leba¬
decline to less than 8% while has built its cash to well in
been a daily feat for more
non; if we did not do so, they
other roads struggling with
excess of what is required in
than a dozen sessions.
harped, all of the Middle East
passenger losses were slipping its normal business. Moreover, would fall into Russian hands.
70%. The line serves the control changed hands re¬ Our allies Greece, Turkey, Iran
The two overriding ques¬
growing southwest and is cently to bring in fresh ideas. and Saudi Arabia, would under¬
tions
that
the interruption
stand
that our
protective pacts
*
*
*
generally considered a high
meant nothing and they could not
failed to answer are whether
grade item.
the boost was enough to snuff
Apparently the company is depend upon us to come to their
rescue
in the event they were
far from finished with plans
off
the
summer
rally or
Laggard Aircrafts
threatened.

should

we

landed

have

Lebanon and they say
"yes, probably," but we still do
not
have
any
policy governing
in

troops

the Middle

East.

strikes

It

landing

that the

me

definite pol¬
We had told these small na¬

of troops was a very

icy.

their protector
shown it in
Lebanon.
It makes little or no
difference that we have been a
tions that we were

that

and

that

remains

The

protector.

timid

very

have

we

fact

succeeded

have

we

President, pre¬
in progress. Some of its other
whether it would resume in
Well, we moved boldly, as these sumably popular with the ma¬
Also a bit lacklustre in the
columnists and editors would say, jority
the three weeks remaining
of the people. To have
market's latest runup are the plants are known to be on the
block. Why this large accu¬ into Lebanon. Immediately these landed as many troops as we did,
before Labor Day to carry the
aircrafts, largely because of
Eastern
editors
and
columnists and to have had the formidable
mulation of cash isn't known
industrial average into con¬
the unpredictable switches in
and radio pundits began telling us naval
aflmy
offshore, seems to
tention with the 1956 peak of
defense demand and with the specifically although the cor¬ that was not the thing to do. We have been a small accomplish¬
521. It had worked above 510
should
not
have
been
excited ment,
porate
charter
was
changed
but
an
accomplishment
recent stretch-outs and the efabout the revolution in Iraq at nevertheless it was.
before the Federal Reserve
f e c t on profits still within recently to permit the com¬
all, we are told, because it was
There is no question at all that
stepped into the picture with memory. Lockheed was one of pany to make acquisitions in just a nationalistic uprising, quite
the Government is still blushing
the tighter margin move.
the more favored in this group any other field it desires as pleasing to the people and Iraq about its having called off France,
well as to purchase unlimited is still a great friend of the West.
Britain and Israel in their attack
because in addition to its de¬
In the meantime, we have some
The list's performance indi¬ fense work it is well rounded amounts of its own stock, two
upon
Egypt in 1956.
Had the
12,000 troops in Lebanon, enough
French, British and Israelis had
cated that two forces were in with commercial work as well possible hints of future action. to tear
up the country. But they
their way at that time it would
In the meantime the issue en¬ are not
permitted to fire.
Our
something of a conflict. To as missiles and nuclear devel¬
have been the end of Nasser.
joys a sort of "floor" for the troops are arrested by rebels and
many an excuse for a setback opments.
As to why the Administration
shot at by rebels and at least one
was
price of its stock in that it is
long overdue. But the
of our men has been killed by did this, there is only one expla¬
less than the working capital
We were within two or
record-breaking short interest
Lockheed is not expected to
rebels.
But the whole emphasis nation.
and half of book value.
days of the election in
of our policy is to get our troops three
apparently has held out dog¬ show
any radical change in
#
$
sis
gedly and by covering when its earnings, cutbacks in some
Murray Corp. is also an at¬
prices slipped appreciably has of the military programs only
given the market the tradi¬ about offset by the lower de¬ tractive-asset situation, in fact
was
so
tional measure of support that
regarded for basic
velopmental expenses for its
such covering assures.
worth that even an omitted
turbo-jet commercial trans¬
dividend failed to stop the
ports. But its income is being
Historical Results of
stock from nudging to new
projected to where it covers
Margin Changes
the
dividend
requirement 1958 highs right after the de¬
The history of fluctuating
some
2Vi
times,
which is pressing action was taken.
margin requirements is that above-average coverage.
Here, too, a new group has

reactions to them

are momen¬

tary and the evidence would
indicate that

less

they

are power¬

*

*

❖

earnings lost

With current
in

the

shuffle

taken

'•

and

the

em¬

sizable

a

commit¬

company's stock
presumably has plans for

ment

and

on

in the

cut of there on the least provoca¬

which

accomplishment
will
have been to bring about the elec¬
tion of a new President.
It was

You

tion.

Dur

Chamoun, the President,
vited

in" and now,

us

How

has

he

finagling,

other

the

are

who "in¬

under our
ousted.

been

dictators

the Middle East to view that?
man

who

was

in
A

with

playing ball

Republicans'

the

Republicans felt on the
about any dis¬
turbance
to
their peace
issue.
There is little doubt either that
and

the

eve

of

election

French

British,

the

Israelis

and

thought this to be the exact time
to launch their campaign because
the U. S. Government, on

Undoubtedly, with our show of
force in Lebanon we have been

mouth shut.

quite impressive, but how im¬
pressive? We have been nervous

great

slogan was peace and prosperity.
can imagine how Eisenhower

the United States gets the axe.

of

election,

an

would

the eve

keep

its

On this they guessed

wrong.

getting back to these critics
Dulles I would
what they would
have done or what they would do
But

of Eisenhower and

a
the
future.
This stock has
prevailing
Victor Chemical. As the pre¬
phasis concentrated on the
been hovering
although it is
around the miere
ability of particular situations
growth group, chemical
granted that they do curb to benefit from a rebound price of its working capital,
returns have been unattrac¬
rabid speculation at market
alone which was built up by
from recession, some of the
tive
more
times
than
not
peaks. When the record peak traditional indicators of stock sale of its auto parts and
against other groups. Victor,
was
reached
after a hectic
value
were
being ignored, bowling alley pinspotter busi¬ however, at recent prices
climb in prices through 1955
nesses.
offered a return of around
notably
in
the
case of Chrys¬
and
1956, it was achieved
ler where the relatively small
412 % against around or less
Successful Corporate
about a year after two in¬
amount of shares outstanding
than 3% for other. Like busi¬
Rearrangement
creases
had been posted to
offered leverage far beyond
ness
generally, the chemical
A
case
where
certain
bring the cash required to what General Motors with its
por¬
industry has had its troubles
70%. The 1946 bull market
tions of a business were sold
280,000,000 shares, or Ford
both from the recession and
to
end
an
peak was scored well after with its
earnings drain
54,000,000 could
from costly production facili¬
three margin boosts that had,
could be Eversharp which dis¬
show. Chrysler has less than
ties
which
built
up
over¬
several months before the top
posed of its writing instru¬
9,000,000 shares.
was
ment line, acquired some new capacity even before the re¬
scored, brought the re¬
cession set in. The chemical
quirement to 100% — full Beneficiaries of Prospective top executives and is aggres¬
companies are in line to bene¬
Auto Recovery
cash, or no margin trading at
sively promoting its profitable
fit fully from any overall re¬
alL
The
lowest
permitted
National Steel, which relies razor business so it, too, could
since
show
a
comfortable
margins came under on the auto industry for near¬
improve¬ covery from the recession.
FRB jurisdiction
was
40% ly half of its business, or ment in results.
[The views expressed in this

to

market

in electing a new

reverse

trend

like to ask them

They keep complaining that
and Dulles have not

now.

Eisenhower

given us a "bold" or an "imagi¬
native" foreign policy but when

s

prior to 1945.
if-

double
*

*

Unlike the industrial




tant
aver¬

on

its

next

product,

the

most

was

belief

in

❖

impor¬

also bought
the ability

$

article

time

The
noted

yield item in
for

liberal

a field not
returns is

do

not

coincide

"Chronicle."
as

those

necessarily

at

any

those

of

the

1with

They

are

you

ask

they mean
idea.

what

Martin Inv. Co- Adds
(Special to The Financial Chronicle)

LINCOLN,

Neb.— Sidney H.
added to the staff

Sweet has been

Martin

of

Company,

Investment

Trust Building.

Joins

Elworthy Staff

(Special to The Financial

Chronicle)

FRANCISCO,
Calif.—
Yates S. Bleuel has become affili¬
ated with Elworthy &
Co., Ill
SAN

Sutter

Street.

Joins Aim, Kane

Staff

(Special to The Financial Chronicle)

CHICAGO,

111.

—

Millard
J.
with Aim,

Grauer is now affiliated

presented Kane,

of the author only.]

them

they haven't the slightest

La

Rogers &
Street.

Salle

Co.,

39

South

Volume

Number 5766

188

.

.

.

The Commercial and Financial Chronicle

(513)

favor

Recession Scare in Britain

of

various

kinds

tionary measures
higher wages.

of

refla¬

leading

With Dean Witter Co.

along with Board of Trade's
pessimistic prediction of a recession, writes Dr. Einzig who
fears erroneous Ministerial defeatism, by Sir David Eccles,
may induce reflationary measures leading to higher wages.
One paradoxical possibility, he says, "of officially stimulated

LOS ANGELES, Calif.—Franklyn McMahan and William D.

recession fears is

Mr. McMahan

weakening of resistance to

a

O'Hare
&

demands."

wage

H.
For the first time since the Sec¬
ond

World

War,

real

a

recession

developed in Britain at the
July. It is entirely due to
pessimistic

end of
a

statement
made

by

the

President
the

Board

Trade,
David

of

f

July

28.

He

declared

that

effects

the

U.

sing

Paul

Dr.

Einzig

had

Europe

While

that

the

U.

touched

now

in

now

was

The

facts

S.

bot¬

on

re¬

known.

close

any

unknown

mand

he

did

facts

other

of

one

timism.

based

dis¬

not

previously

economic

feared

Sir

where

in
to

guarded

very

Until

rushed

David

wiser

tread,

it

either

had

the

auiumn

revival

a

op¬

Eccles

men

was

eral belief that the

witness

of

gen¬

might
infla¬

tionary
pressure
or
a
further
slackening of business. But the
fact that
has

down

come

the

on

side

T.

prophets

their

and

If the effects of that
to be confined to

caused

the

by

Exchange

improve¬

political

that

Stock

a

Ex¬

change boom would be most in¬
opportune.
But there is always
possibility that, on the strength

of

the

a

go

long

a

official

above

unwise

Ministerial

might

taken

pronounce¬

the

Treasury

does

refusal

Trade

to

Union

for

comply

with

Council's
to

measures

U.

C.'s

Economic

Mr.

Committee,

a delegation received
by the Chancellor on July 31,
suggested that there should be

autumn

an

David

spoke

Eccles

turn,

of

out

some
embarrassment
discreet
colleagues

to
in

more

For this

Government.

lieve

people
that

inclined to

are

he

reason

know

must

be¬

some¬

What Labor Should Be Told
What
have

the

Chancellor

added

in

lies

unions.

hands
is

It

that

was

the

of

ought

the

of

the

prices

are

inclined

to

had

David
any

of

an

Eccles.

autumn re¬

solid

more

those

given

For

the

founda¬

by

degree

Sir
of

recession that might develop
to be accentuated by of¬

is liable

ficial

defeatism.

Government

were

Even

if

the

certain that the

.

operating profit

Deduct—Provision for

.

.

Net

$81,635,167

$ 4,000,625

$ 7,529,316

taxes on income

profit before allowances

Deduct—Increase in allowances
Net

1957

$78,210,289

1,875,000

4,000,000

$ 2,125,625

$ 3,529,316

$ 2,125,625

$ 3,104,316

long-term contracts

on

profit

.

425,000

.

The above information is based in

and is not

been

revised, and those
The

to

trade

rise

non-stop

that

estimates and is subject to year-end audit, adjustments and charges

upon

at

as

June 23,

as

at June 24, 1957 hate since

1958 will be revised hereafter.

Company's business consists largely of long-term ship construction, repair and conversion and hydraulic turbine and

large unit value, the performance of which

may

extend

periods

over

discourages

as

long

as

several

years.

large part of the Company's business is with departments and agencies of the United States and the contracts therefor

subject to profit limitations and renegotiation to the extent that existing law and the contracts
cases,

remedy

the

large part

necessarily indicative of the full year's results. The underlying contract estimates

to

The

may

provide and, in

are

some

termination at the convenience of the Government.

Company records profits

basis, and

by such allowances
increases in

on

its long-term shipbuilding contracts through estimates

its other long-term contracts as

on

costs

as

billings

made thereon. The profits

are

the percentage-of-completion
are

reduced

be considered advisable, taking into account the stage of completion of each contract, possible

may

included in the estimates, guarantee

not

on

estimated and recorded

so

liabilities, unsettled contract adjustments and other factors. The

allowances reflect the reductions in Federal and state income taxes which would result if the matters

by the allowances materialize. To the extent that the matters for which the allowances were provided do not

mands and by

being

the uncertainty of

able

to pass on the in¬
to the buyers in the form

creases

of

higher prices, industrial firms
prefer to mark time.

wisdom

begins

and

therefor, the
be

as

paid for each

is

year

increase
If this

by

of

lo

a

the

¥2%

dock

is conceded it

Income

from

recorded upon

profit

will lead to

wage

laborers.

is

bound

to

in

the

One

margins,

prices
of

effects

of

other

contracts

of
,

in which such

year

it

food

and

raw

a

to wage

matters

materialize. Federal and state income taxes must

estimated and recorded without consideration of the allowances. Such allowances

and

orders

is

estimated

and

recorded

as

billings

made under the contracts or

Six Fiscal Months Ended

,

V

.

.

Ship conversions and repairs

.......

.

.......

.

Hydraulic turbines and accessories
Other work and
Totals

1957

1958

Billings during the period:

Shipbuilding contracts

June 24,

June 23,

'

operations

.

.......

$61,819,876

$50,256,430

12,434,597

20,273,195

3,180,095

1,001,090

.......

5,675,599

8,672,639

.......

$83,110,167

$80,203,354

At June 23,

At June 24,

.

.

weakening of
demands. This

paradoxical. But if of¬

are

Major Contracts and Number of Employees

'

possible unwanted
officially
stimulated

recession fears is

may sound

as

Quarterly Statement of Billings, Estimated Unbilled Balance

the

of

resistance

since

substantial increase

a

the profits

completion of each contract.

ends

start off another reduction in pros¬

pective

upon

in that direction

move

demand

included in income. If such matters materialize in amounts exceeding the allowances provided

aggregated $3,125,000 at June 23, 1958, December 31 and June 24, 1957 and $2,700,000 at December 31, 1956.

underlying economic trends.

the

are

will reduce income in the

excess

demanding higher and still
higher money wages, regardless

1957

1958

Estimated balance of major contracts

unbilled

at

the close of the

period

$380,627,622

$344,610,460

ficial circles

genuinely believe in
danger of a depression they
might actually favor higher wages
as

a

reply

unionist

to

demand

measures,

the

trade

reflationary
Government
has

adopted such
pessimism

accentuate

official

such extent that the
a

the

for

an

change in

the

towards wage
ruled out. In

Europe it would have been wiser
to surround any reference to that

liable

to

12,874

is

liable

pessimism

to

to

possibility of

official

attitude

demands cannot be

increase

pressure

in

income from long-term shipbuilding contracts on the percentage-of-completion basis; such income

period will therefore

vary

from the billings

on

the contracts.

By Order of the Board of Directors

to

any case, if Gov¬
spokesmen foreshadow
depression
their
pessimism
is
ernment

during the

period

The Company reports
for any

attitude.

the response of the public

official

Equivalent number of employees, on a 40-hour basis, working
last week of the

stimulating con¬
Judging by Mr.

demand.

Amory's

But

of

means

American recession is about to hit




.

materialize, the allowances

if the prospects

than

.

covered

not yet

tions

.

.

capacity,
or
even
from
fully
utilizing their existing capacity.
Faced
by
persistent wage
de¬

sumer

cession

.

reserved

that the Chancellor is
simply more cautious than his
colleague. There would be every
justification for such caution even
suspect

.

amounts

the

people

.

business firms from embarking on
the expansion of their productive

cancel out the effect of Sir David

Many

Net

A

and

Eccles' words.

.

.

other construction contracts of

demand.

sumer

materials.

on

Gross income

Budget to enable the

to
take
reflationary
offset the growing
unemployment. Mr. Amory replied
that the time was not ripe for
further measures to
expand in¬
dustrial production or raise con¬

which his defeatism is
which other official
quarters are unwilling to disclose.
This explains why the more op¬
timistic statements by the Chan¬
cellor
of
the
Exchequer,
Mr.
Heathcoat Amory, have failed to

thing
based,

June 24,

1958

to

measures

The latest

Sir

Six Fiscal Months Ended
June 23,

Chancellor

of the

past

1957

the

tumn.

many

Whitney Avenue.

de¬

increase

with

causing

a mem¬

not

and
even
their current
production programs, in anticipa¬
tion of a depression in the au¬
grams

the

Advisoiy Corporation and

ended June 23, 1958 and June 24,

place in the ab¬

nomic

his

Sommer

Profit afid Loss Information for the six fiscal months

of such pronouncements.

scale down their investment pro¬

repeatedly

David

recession which would

a

This elementary fact is ignored
by trade union leaders whose eco¬

the

and

Newport News Shipbuilding and Dry Dock Company

easily

ment, many business firms might

In

HAVEN, Conn.—Harry W.

Cofrances

way

any
deferred.'
earlier downward

the

ty

modera¬

situation, it would not cause much
Indeed it is widely felt in
circles

Standard

Company, Los An¬
have been added to the staff of
geles, Cal., and prior thereto he
was
Vice-President of Piedmont Coburn & Middiebrook, Inc., 77

the

pessimism

harm.

a

in

in wages in face of the uncertain¬

ment of the international

official

revival

followers.

a

tion of the minor Stock

boomlet

Beneficial

Life Insurance

(Special to The Financial Chronicle)

re¬

a

who headed

of

prophets of recession, with a
cocksureness that implies inside
knowledge, gave rise to wide¬
spread pessimism among econom¬

were

to

production and consumption.
Alan
Birch,
Chairman
of

the

ic

of

NEW

Investment

as seems pos¬

British senior Minister

a

Officer

Chief

the impact

offsetting

Amory's

which

prophets whose attitude, pased on
the
known
facts, had hitherto
been

With Coburn, Middiebrook

and

(Special to The Financial Chronicle)

formerly Vice-

share Sir David Eccles'
pessimism
is
indicated
by Mr. Heathcoat

the

He

new

to

President

July 23, 1958

a

of

Coburn, Middiebrook Adds

department.
was

elected
director

Incorporated Investors
and
Incorporated Income Fund,
Boston, Mass.

Carroll & Co.

Dunphy

later
and

research of

psychological
change of trend

itself

of

That

reaching Europe.

his pronouncement had been gen¬

erally

not be

Ex¬

1948, and was
Vice-President

the

such

in

have

sence

expres¬

tom, he said that the tide of
cession

business

of

generate
not

hit

to

belief

recession

If,

pronouncements

future."

his

a

States,

trend.But

re¬

likely

near

search

Committee,

shores of the

recession

United

effects

were

"quite
the

Spring Street.
formerly with

was

Stock

change, announced that John J.
Dunphy has joined their firm as
Manager of the investment re¬

reserva¬

can

resisted

S.

witness

towards

of

S.

cession

have
U.

should

on

the

the

effect

Co¬

operation

South

New York

Finance

sible, the next few months should

European

Economic

the eastern

on

markable degree.

Paris

632

of the

bers

with Dean Witter

certain, any more than anyone
MANCHESTER, Conn. —Violet
else, about the repercussions of M. Motola is with Coburn & Mid¬
the U. S. depression on Britain
diebrook, Inc., 541 Main Street.
and on Europe. So far the coun¬

of

meeting of the
Organization,
o

But the Government

Atlantic

Sir

number of

a

tions.

tries

Eccles,

the

at

f

o

Co.,

now

Mr.

possibility to

scare

are

the

Chemical

Company.
Mr. Dunphy joined Incorporated
Investors as a security analyst in

Cyrus J. Lawrence & Sons, 115
Broadway, New York City, mem¬

(Special to The Financial Chronicle)

of

Vick

Cyrus Lawrence Sons

By PAUL EINZIG

British Treasury refuses to go

ber

John J. Dunphy With

to

17

R. I.

FLETCHER, Financial Vice President

The Commercial and Financial Chronicle

18

.

.

Thursday, August 7, 1958

.

(514)

New Horizons
most

sisters,

weak

of

number

usual

the

are

devil

But

operations than at any time since

have

the end of the war, so that they
will be in that much better shape

If

further than that.
don't watch ourselves, we're

we

going to have shortages in the dis¬
tribution

channels.

lag,

production has
consumer
in¬

has resumed

its climb. June

While industrial

continued
come

to

have

against

can

management seems to
climbed on the bandwagon
top

disposable income was almost 1%
ahead of June, 1957; July income,
aided
by payout of retroactive
Federal
pay
increasess, will be

taking

Personal

income

reach

may

a

day,

survey

that manufacturing

pect

their

20.%,

on
and

now

this

sales

increase his sales

to

in

equipment

rise from 78%

industry

to begin planning and
anticipation of such a
expansion of its markets
nekt

the

over

time

present

Consumer

build

will

you
or

up,

about:

S

their

recovered

had

consumers

1.

poise and were starting to spend
again; they turned $17.3 billion
retail

to

-

shade

in

than

more

in

stores

May,

other activities is Lockheed

sub¬
improve¬
ment in retail store sales in July
and August (seasonally adjusted)
June-July

income

in

spurt

stantially guarantees

fication,

billion in

local

has

now

more

way

years

again, and production will rise
and increase payrolls further and.

the

of
In
the

outlook,

above

7.

ram-jet test vehicle

Anti-Intercontinental Ballistic Missiie

resiliency and

our

(study program)

ELECTRONIC

ahead.

a

long industry shutdowns planned

one

1.

Telemetering equipment
In-flight recording devices

3.

Training aids and simulators

specializing in certain fields and inde¬

4.

Solid-state electronic devices

multitude of endeavors

5.

Data-link systems

team of autonomous

each

DEVICES

composed

2.

Hence industry shutdown policy
of

X-7A Air Force

Navy flight test rocket vehicle

time in its

Lockheed Aircraft Corporation is

strengthen retail sales.

July-August is ill-advised.

XQ-5 Air Force test drone

ability to adjust to changing conditions in the

up

view

Army Kingfisher target service

projects in production
any

Navy Polaris missile system
Earth satellite

engaged in?

history—thus increasing

and

Federal, state
purchases are on the

PROGRAMS
1.

developing? What

development stages than at

or

the second half of 1958.

addition,

MISSILE

Lockheed, long noted for its wide diversi¬

an

and store sales of $105.8

■

of aircraft and missiles is

Lockheed manufacturing or

a

The

1957.

How many types

r* *% f

pendently active in

a

operating divisions—

for July are unrealistic. Time lags

that make up today's air/space

industry.

6.

Radar and beacon systems

in getting production going again

Lockheed's versatility in management and

7.

Data reduction

going, I repeat, to make for
shortages in distribution channels,

technical skills is, we believe,

8.

Antenna

are

Value

One

getting
dose

of Advertising

marketing that is
especially concentrated,

an

realistic

of

thinking is,
If
for

other reason, it's a matter
lars
and
cents,
because

pretty

But

Ion
Gas

Prop-jet photo-mapping, air rescue

5.

Computing machine memories

Prop-jet drone launcher director

6.

Very high-speed aerodynamics

without
start

earnings

question.
slide

to

a

comes

under the head¬

marketing side of
we're
living
by

-we're

vertising,

2.

Fighters:

F-104B-D two-seat jet

is

Jet

and

slump

won't

it

be

3.

Trainers:

Federal

is

out.

The

index

tional Product will be

swing
that

by

annual
even

in

the

the
rate

third

end
will

Gross
on

of the
be

Na¬

wave

propagation

13.

VTOL and STOL

14.

Operations research and analysis

designs

Chemically-powered supersonic
bomber

T-33A jet

the
or

greater than, that record set

design

SeaStar

AIRCRAFT MODERNIZATION

navigational
electronic counter

Patrol

P2V-7 piston-jet

anti-submarine Neptune

Planes:

WV-2 & WV-2E piston

measure

l.

P3V-1 prop-jet

flying radar stations

AND

SERVICE

Maintenance, overhaul

2.

Repair

3.

Modification

4.

anti-submarine Electra

5.

5.

Research

U-2

Planes:

P2V

Nuclear

Nuclear-powered strategic bomber design

2.

Nuclear-powered logistics, patrol designs

3.

Plane:

Missile field service support

high altitude

equipped for Internationa! Geophysical Year

AIRPORT

SERVICES
1.

6,

Electronics maintenance
and overhaul

Prop-jet flying radar station

and

equal to,




Electromagnetic

are

year

in the third quarter of 1957.

Boundary layer control
Jet thrust reversal

and servicing
4.

the up¬

quarter

*

Jet and prop-jet

climbing again—in fact, we'll see
a definite upturn well before the
summer

12.

Jet and prop-jet

going

has leveled off,
long before the

Reserve

Materials and processes

and radiation

fighter-bomber

T2V-1 jet

Gross National Product figure and
the

9.

,11.

Close support attack

to have plenty of challenges for all
of us. As far as I'm concerned the
business

fatigue studies

Noise suppression

Jet unmanned

carrying
are

Starfighter

crew

8.

10.

Jet all-weather interceptor

its share of the load.
The next few months

Starfighfer

dynamics under magnetic influence

Human engineering
and

1-5.

making sure that ad¬
well as every other
function,

F-104A-C air superiority jet

propulsion

.

as

distributive

7.

Supersonic jet transport study

axiom that "the time for the hard,
.

PROGRAMS

Jet/prop-jet special airmissions

the
the
.

RESEARCH

Chemically-powered logistics

down,

go

sell is when it is hard to sell"
and

Radioisotopes for industry

4.

economy,

can.

business,

Radiation shielding

6.

Prop-jet troop, missile carrier

the

to

ing of making doubly sure you are
doing the best job you possibly
the

5.

Space communication laboratory

adver¬

his advertising budget just as he
does every other large expendi¬

On

/

3.

of

contributions

sales

It all

Passenger piston Super Constellation

Prop-jet in-flight refueling tanker

value

eyerybody starts looking twice at
ture.

aircraft systems,

Man in space

of

and

on

1.

proved

little,

Radiation effects

design

Cargo piston Super Constellation

be¬
those points have long since

when

reactor

2.

economic

been

Nuclear propulsion for missiles

Utility jet JetStar

is doubting its tremen¬

cause

Industrial

3.

the

of

growth

Testing of nuclear devices

Airfreighter prop-jet Hercules

tising
the

1.

2.

Passenger prop-jet Electra

skeptical
dous

•

misunderstand
in his right mind is

don't

one

or

AIRPLANES

Transports:

big.
No

equipment

development

equipment, and materials

1.

However,

are now

4.

MANNED

advertising looks

r

PROGRAMS

of dol¬
when,

$10 billion spent by business every
on

NUCLEAR

partial list (restricted for security

in production or development stages:

no

sales and.earnings are down, that

year

a

reasons) of Lockheed projects which

of

advertising.

course,

Here is

of

area

unrivaled in the

field of flight.

The
they

wish to begin to
replace, plant an$l
equipment in anticipation of an
appreciable sales gain, machinery,
If

(1)

spending

r*

years.

favorable,

an

is on the
way up again.
Even before the
above spurt in income developed,

me.

three

is

because:

say,

at the end of 1957

Lockheed Management answers your questions

in

welcome

as

then, state that
individual

is the time for any

acting

by

interpreted

was

surveyors,

company

average, between
1961. The corollary of

and

has

now

the

forecast

because

Time to Invest

Now Is the

The

I read the

increase

point,

service.

which showed
companies ex¬

to

high

here is where pressure oh
costs begins to mount, as less.effi-cient
facilities
are
placed
in

right

that keeps

gets than I would tell a salesman
he

unfavorable

a

meaning that if this 20% gain is
achieved, the utilization of plant

July.

in

other

the

results of

arbitrary

billion in

all-time high of $350.6

In

crawls into

days may never get

slugging it out, will be the first to
come back, and you will take in¬
dustry positions away from the
guy who panicked when the going
got a little rough.
;
Just

Now, 85%
to be ah

nearly 85% by 1961.

utilization is considered

slices out of our advertising bud¬

that

to

travel

than 1% ahead.

more

over

these

out of it. The company

at Sylvania, and every
of effort we can muster, is

advocate

his

take

then

The company that
corner

being directed toward holding our
sales
volume, and
I would no
more

and

budget away from him.

spare

ounce

this recession — and
frankly I have been a little sur¬
prised at how many have seen
the light.
During the Economic
Mobilization Conference of the
American
Management Associa¬
tion in New York several weeks

even

20%,

there were plenty of indica¬
learned

tions that management has

during

when this slump is over.
go

ago,

will

this

argued
like the were holding the line on adver¬
cutting such mar¬ tising and promotion budgets.
In fact, I'll lead with my chin
keting costs as advertising and
and tell you this: Every dollar we
promotional budgets.
nessmen

companies not only are taking it
but- are slugging right back. And
they're slugging back by taking
a closer and harder look at their

I'll

conservative

bitter experience that you
enormoqs by
opportunity to put new and im¬ don't stop your watch to save
proved products to work at a scale time. The chief executives of five
or six companies in as many dif¬
we have never dreamed possible.
In other business slumps in re¬ ferent industries laid the facts on
cent years, more and more busi¬ the line and stated flatly that they

mean.

there

most

knows what
Here will be an

company

Sales Management's
Although

the

Even

from page 9

Continued

Operation

(Aviation fuel distributorship
Maintenance base

operation

Volume

parts,

and

more

they
a

are

.

.

.

The Commercial and Financial Chronicle

much

are

than

now

when the economy is in

With
less

now,

materials

boom.

(2)
and

Number 5766

readily available

real

to

188

lower

interest
for

down
sounds

these

finance

to

prove

the

to

be

recession

to

be

exact

true

years,

three

years

new

ment

important factors for which

increase

labor

produc¬

1
probably

revolution in
At any

Many
time

will

economists
between

constitutes
booms.

a

rise

equip-'
in

the

believe

that

and

1961

now

period between two

They don't

1960's

based

technology."

rate, here

in

crease

the

mean

that 1958.

a

'

:

-

mar¬

pre¬

great in¬

a

Gross

,

National

Product, the contributions of sci¬
and

ence
new

engineering in dazzling

ideas and

improved products,

and the prospect of a boom of

a

take advantage of the

is

to

come.

These

are

un¬

the main office

the

in the Mercantile

Dallas Building.
Seven
of
the
persons

that

19

Townsend Heads
original

associated

with

twelve

the

Resort Airlines

firm

are still with
Rauscher, Piorce &
The ' election
of
Morris,- M.
Co., Inc.,today. They include: John
Townsend as President of Resort
"New H. Rauscher, President;
Charles
Airlines,
Inc.,
was announced by
C. Pierce,
Vice-President, Dallas;
Louis J. Kocurek, Vice-President Gen. Thomas B. Wilson,
Chair¬
man
of
the
in charge of the San Antonio of¬
Board and
fice; Mrs. Lucile Ferguson, Assist-,
Chief
Execu¬
ant Secretary, Julian
Bobo, Muntive Officer.
son McKinney, J. Sidney
Stone,

position
era

the

on

have three

we

pared: the prospect of

future.

the

the

dynamic population growth and

keting management must be

(4) The cost of plant and
ment

in

will be in

to

Horizons in Marketing."

deferred demand" and "a

boom

must make certain

its company

transition

are

(3) The labor supply will be
tight in the future, so now is the
time to anticipate this situation
by installing more efficient equip¬

on

in

Marketing management in each

between "the postwar boom

ears

proportions

ahead.

company

logical when it is said that

b ased

to

years

right
but it

equipment and construction.

tivity.

dreamed-of

period of slower
don't know whether
a

I

will

loans

will

1960

but

rates,

it is both easier and cheaper
money

and

growth.
this

.

competition

borrow

1959

years,

(515)

that

Rauscher, Pierce Go.
25th

Anniversary

all

associated

fice

DALLAS, Texas — Rauscher,
Pierce •&
Co., Inc., dealers in
stocks and bonds, celebrated their
25th Anniversary, Aug. 1. Today

with

in Dallas.

the

home

He

of-1

succeeds *

Harold

L.

Graham,

Jr..

Resort; is

the

„

A. T. Brod Partner

largest

1

com¬

mercial

the firm maintains 11 offices in
On Aug. 15, A. T. Brod &
Co.,
Austin, Fort Worth, Harlingen, 120 Broadway, New York City,
Houston,
Lubbock,
Midland, members of the New York Stock
Odessa, San Antonio, Tyler and Exchange, will admit Barrie Les¬
Fayetteville, Ark., in addition to ter Beere to partnership.

rier

car¬

mili¬

of

tary freight in
the

nation.

Town-I

Mr.
send

is

also

President

1.
2.

Airport management consultation
Aircraft

4.

5.

crew

Townsend served the U. S. Treas¬

significant sales in many

new

and Investment
ings Bond Division.

for example, at several areas in which we have

SUBCONTRACTING
1.

Tool

2.

Fabrication

3.

Assembly

total sales through mid-1958: $289

...expected 1958 sales:
Nuclear

over

Government research and
PARTS

DISTRIBUTION

rations

million

$200 million.

$10 million.

and others.

EQUIPMENT
Passenger/cargo loading bridges
Aircraft/missile maintenance
and

:

Trainers—first trainer flew in 1948... sales

Aircraft/missile test and checkout

4.

Mechanized cargo loading systems

Securities Offered

5.

Aircraft/missile flight and

'

training aids

Aerial delivery systems

stock,

contri¬

scribed
Each

sources

come

undreamed of

commercial

a

exciting

new

few short years ago:

applications of missile and space

travel technologies... radically new

supersonic

jet transports.. .harnessing of nuclear energy
for industrial use...electronics
or

from the whisper

of

an

idea

applications...
as

yet unborn.

made

on

Aug.

consisting of $1,000
amount of debentures
of common stock,

unit,

shares

20

priced at $1,000, while the
shares of common stock
offered at $5 per share.

was

600,000
were

Net

proceeds from the financ¬

ing will be used by the company
and
its subidiaries for the ac¬

quisition of substantially all of the
assets of predecessor companies
in the States of Florida, Georgia,
lina.

and

Carolina

March

of

As

South

31,

Caro¬

1958,

the

book value of the assets to be ac¬

(excluding inter-company
was
$4,644,254, and the

quired
claims)

0

the books closed.

and

principle
and-

North

LOCKHEED DIVERSIFICATION: A COMPARISON OF 1947 VS. 1957

amount of liabilities to be

assumed
AIR FORCE-AIRPLANES, SPARES AND

was

by a syndicate managed by The
Johnson, Lane, Space Corp. Both
offerings
have
been
oversub¬

butions to human knowledge-and sales from

developing will

$2,500,000 of 7%

1

Out of the many advanced projects we are
now

of

debentures, due July 1, 1993 and
50,000 shares of common stock of
Billups
Eastern
Petroleum
Co.,
offered in units, and an additional
600,000 shares of the company's
common

through mid-1958: $506 million.

equipment

MILLIONS

re¬

Billiips Eastern Pet.
Public sale

$3 million..'.sales in 1957: $102 million.

ground handling equipment

maintenance

now

Director of the

cently announced Townsend U. S.
& International Growth Fund, Inc.

$385 million.

^Military modernization and service—1947 sales:

3.

6.

di¬

a

million.

1958

1.

as

Mr. Townsend is

President and

plane flew in 1949...sales through mid-

2.

served

Company, Vitro Corp. of America

development-from

Airborne early warning-first radar picket

HANDLING

has

and

Flying Tiger Line, Inc.,
Advance Industries, Inc., Ameri¬
can
La
France
Foamite
Corp.,
Axe Houghton Stock Fund, Inc.,
Axe Science & Electronics Corp.,
Modern Engraving and Machine

in 1957. Total postwar research sales: $157

13,000 parts for commercial

Of the Sav¬

is

of

rector

less than $6 million in 1947 to $26 million

planes alone — in five U. S. depots.

Mr.

years,

broadly ex¬
perienced
in
organization
and
management of industrial corpo¬

energy-first contract 1951...sales

through mid-1958:
SPARE

over

Townsend

Mr.

Missiles and satellites-first contract 1946...

design and manufacturing

war

ing

fields. Let's look,

expanded vigorously:
MANUFACTURING

the

Resort.

National Director of Bank¬

ury as

diversification in the past decade has brought

training

Nuclear operations management

stment

Yes. And it will continue to. Our drive for

of

stock

common

During

Computer time

n ve

Company, which owns 83% of the

production licensing and

Aircraft/missile flight and

ground

I

2* Is Lockheed's diversification paying off in in¬
creased sales and profits?

technical assistance
3.

of

Townsend

Morris M. Townsend

MANAGEMENT SERVICES

(including

Federal

RELATED WORK

but

State

and

the distribution and
line

taxes

inter-company

was

predecessor
NAVY-AIRPLANES, SPARES AND RELATED WORK

income

li¬
$2,003,727.
The
companies engage in

excluding

abilities)

paid or
accruals for

oil

and

sale of gaso¬

products, automobile

accessories, and other retail mer¬
chandise.
COMMERCIAL-AIRPLANES, SPARES AND SERVICES

The debentures will be redeem¬

able at optional

redemption prices

ranging from 105% to 101%, plus
accrued interest.
They will also

MISSILES AND SATELLITES

redeemable through the sink¬

be

ing fund at par and accrued inter¬
est,

Jan. 1 in each year begin¬

on

ning with 1960.

MILITARY MODIFICATION AND SERVICES

Form Winter halter Co.
JACKSON
GOVERNMENT RESEARCH AND DEVELOPMENT




Harold E.

TOTAL SALES, 1947:

$135 MILLION

TOTAL SALES, 1957: $868 MILLION

i

means

leadership

N.

Y.—

a

Winterhalter
halter

LOCKHEED

HEIGHTS,

Winterhalter is engag¬

securities business from
offices at 35-15 Leverich Street,
under the firm name of Harold E.

ing in

was

& Co.

Mr.

Winter¬

formerly with Empire

Planning Corp. and Kidder, PeaV\n/4tr

Sir

fn

20

The Commercial and Financial Chronicle

(516)

Continued

from first

of

page

most

popular of

interested

glad to

sive

attitude

from

is

also

be

to

Summary Table

our

defen¬

a

noted

on page

high proportion
of

possible

ther

Atomic Development Securities Co., Inc. Dept (

comprised by
stock
funds, in¬
positions; fur¬

open-end
their

creased

that

of

assets

cash

the

all

proportion

rities

WASHINGTON 7, D. C.

remained

Of the closed-end

bought
■*

mm

BOOKLET- PROSPECTUS

commons on

describes THI

and pos¬

through
mon

stocks

selected for

I

their invest¬
ment

quality.

balance, with

the

international

has

not

balance
the

of commons oc¬
larger companies,

Tri-Continental,

necessarily

not

covering

ended

June

curred

new

as

a

in

available
the

,

our.

Stock from 94.4%

period

30, undoubtedly oc¬
result of the initia¬

Substantial

during the quarter of several
funds such as gigantic One

Address.

63 Wall Street,

GROUP,

INC.

New York 5, N.Y.

William

Stock

ship

tual

of

of

&

equi¬

Howard

Fund, Knickerbocker, Mu¬
Fund[,
George

Investment

Putnam

Affiliated

Fund,

State Street, Adams ExpressAIC, American European, General
American Investors and Niagara

FUND

new

Share.

Eaton

&

Howard

Stock

Aii

1

83%

of

net

to

assets

78V2%;

shares in the open-

Zinc

quar¬

the

stocks
(Aetna
Life,
Fireman's Fund, and Travelers)
closed-end- and short-term *
corporate) notes.
up to the $12 bil¬ Mutual Investment Fund reduced

open-end

end

now

mark.

.'

Accumulation

monthly

of

investment

the public investors' funds is

disclosure

panies

largest closed-end company,
top choice during the first

shares

Oil,

Natural

such

of

Tri

Gas.

and

other

activi¬

ties related to the

energy

;
,

Continental,

During

*."•'*

stock

down

to

the
were

oils

half

RECOGNITION

redeemable,

at

FOR

.

'

the National Sales

.

Mr. Glenn H.

...

C

'

*

Distributor

RALPH E. SAMUEL

the

sco.

Members N. Y. Stock

Exchange

Broadway, N. Y. 6

:.V.'

Merkle, President of
Pennroad, tells us: "There is noquestion but that the oil will be
produced, and for the West; but'
with our long-existing favorable
'deal' changed to a greater share

.

%

' '

,

•

Oils

enjoyed

the

full

Middle

the

entire

the

Industrial

reasons:

oil

political
the

The

and

East will

it has during

as

crisis.
Europe

Middle

need i the

The
needs

Eastern
revenue.

change I foresee is an
in the 50-50 profitsharing, pattern in favor of the oil
producing countries.
This prob¬
ably would have occurred even
without a political crisis. * The ob¬
only

adjustment

,,

vious

result

income

net

will

be

from

operations.

decline

a

Middle

However,

in

Eastern

practically

all the leading companies operat¬

ing in the Middle East belong to
the
group
of 'International Oil
companies' with interests in all
important
oil
producing
terri¬
tories

the

world

be

to

from

others.
oil

section

one

offset

not

likely

are

by improved returns
Nationalization

industry

is

Revenue

over.

an

in

the

of

Middle

immediate

pros¬

pect."

Pre-Iraq

confidence

their

fested

gingerly approach is mani¬
by Milan D. Popovic, the

President

of

the

Blue Ridge Mu¬

tual Fund, who tells us:

of

inter¬

shares, believing that
are justified
some

drastic

change in the situation."

PennBritish

in

the

holdings

Petroleum

Oil

ard

of

include

(39,800 shares), Stand¬
New Jersey (20,619),
Jacinto

San

and

of

absence

road's

Petroleum

(20,000).

is urged on the oil
by Ralph E. Samuel,
President of Energy Fund: "Sum¬
Courage

shareholders

ming up the answer to the direct
question whether an investment
manager should or should not seli
his international oils, we must say
the situation obviously is unpre¬
dictable.
Speaking for ourselves,
we would letain,
undisturbed, in¬
ternational

be

oil

shares, but there
shock and many a
the road: And per4

many a

along

haps it is appropriate to
to

international

own

nerves!

stout

they will
the

over

tainly
at this

W.

But

believe

we

.

be rewarding
and we cer¬

run

not

their

urge

Shakespeare-T-insofar

did

of

course

true

as

profits

importance of oil

revenues

Arab's

and

economy,

the

tance of continued oil flow

life

never

to the

impor¬
as

a

salesman

award

holdings

D. Moreau

of

Barringer, Chairman

Delaware

the

substantial

increase

investment

pany's
oils.

"When

the

Fund,

revolution

Iraq

that

.

reports that
prompted a
in

of the
took place,

our

oils,

to

of

Indiana,

and

additional

shares of others in which

already represented.

we were

The

reason¬

clude, the international oil stocks

despite, constant' alarms

East.'

ing
can

and

in¬

ex¬

was

mestic

supplies

.

were" ^restricted."

•
•

the';.
%

funds;

product,

to

Bond Series

-

Balanced Series

Preferred Stock Series

our

his confidence in

an

his

mutual

investment

Pennsylvania Funds Corpo¬

ration's personalized service to its clients;

•

liking of people;: to the holding of
face-to-face interviews; and to hard work.
We, friends and associates of Mr. Pryce
368 registered
representatives
who have found
opportunity and security
in the selling of mutual' investment
funds,.
congratulate him.
;
..

0

Income Series

Stock Series

.

.

.

•
#

\ :•

.

3 Penn Center
968

Plaza, Philadelphia 2, Pa.

Registered Representatives aetively setting in 220 Communities
in eastern,

southern and

western states.

a

including

Mutual Investment Funds

.

excellent

in

invest¬

major position in Standard

new

Oil

domestic

in

and

made

we

substantial increase in

a

com¬

domestic

Marines

landing

Lebanon

his

in

revolution

the obvious one that do¬
output and even prices
might have to be raised if Middle

»

to

re¬

British

of

Petroleum, Gulf and Royal Dutch.

,

for

Brit¬

blood, this fund has

its

tained

by the
at

the

concerned—

are

smooth."' Relying on the

run

ain's

sale

juncture. To paraphrase Mr.

international oils
'The

that

say

oils requires

;

.

to

prove

long

would

ment

On the other hand, a somewhat
more

holdings

our

present prices

worry

"Oil from

continue to flow,

East

the

retaining

Executives, Inc., and

Pryce of

coveted

re¬

Edward A.

Dividend Series

Growth Stocks Series

7-8600




even

oil

these

of

loss

.

firm received5
outstanding;
achievement during a recent six-month
period. Mr. Pryce attributes his success

.this

as

manage¬

continuity

serves."

the Sales Executives Club of New York.

The presentation was made
Honorable James A. Farley

Waldorf-Astoria Hotel.

but

respective companies
their

assure

after

FREE

.Write to Dept.

CO

will

selling profession
Distinguished Salesman's Award of

the

asset value,
99','o
(re-

PROSPECTUS

115

outstanding

j recently presented witn

the "Oscar" of the

maining 1% being retained
by the Fundi.

—

were

of this

politically

only

not

matter,

these

•

constant

change in the complexion

ma3r

poration:

the

period of Middle
East tension preceding the Leba¬
non-Iraq crisis, the international

A total of 58 of the nation's

'

;;

6.

82.8%

International

The

listed

the

OR SELLING

SEND

'-

'

-

NO COMMISSION

Offered at net

reassurance,
if with
qualifications
regarding
earnings was expressed to us by
Henry J. Simonson, Jr., President

"Diversified portfolios

OF ANY KIND
«

67.6%.

from:
' V;

common;

r

salesmen

,

holdings

its

fields.

CHARGE

the

to

go

some

58.4%; and Knicker¬ declines in

sold

Atomic Energy, Elecfricity

1

-

bocker

of

companies

the.

that

equity holdings from 66.6%

net assets to

quarterly acquisi¬
tion of open-end shares rose to
57,102 during the quarter. Like¬
wise demonstrating the increasing

investment

in industries

its

or

over

as

:

plans

opened by investors for the regu¬

*

;

and

company, concentrating
on
the securities of com-

open

and

revenues

will

revenues

governments

from

insurance

control
*

the

tion

$364 million during the past

lar

oil

for

this

(50,000), and with partially
offsetting acquisitions centered in

companies

inc.

Arabs

reduced its common stock propor¬

end investment companies totaled

lion

Ihe

Europe's need for oil will prevent

ca,,

ter; with the combined net assets
>

East, 'we believe that the need of

vestors, Investment Co. of Ameri¬

vestors of

ENERGY

respect to
companies
been;.'changed; by postoil

and Chairman of the Board, Na¬
Fund, tional Securities & Research Cor¬

Dividend Shares, Incorporated In¬

immediately after the end of the
quarter, will be scrutinized with
great interest as of Sept. 30 next.
The importance of their impact on

of

with

Likewise

Eaton

,

.

position

Iraq events. With respect to those
with large reserves in the Middle

of

Incorporated
Investors
scaled down its equities from 93%
to 89.3%, with liquidation heav¬
our
Great Bull Market, including
ily
concentrated-: in
Bridgeport
the sacrosanct blue chip area, can
Brass
(20,000 ashares),J. Goodrich
hardly be overestimated.
v
(90,000), Koppers (30,000), Mag¬
In this connection it is interest¬
ma
Copper
(42,000), ; National
ing to note that purchases by in¬ Lead
(98,800)
and New Jersey

City.

DISTRIBUTORS

is

economically, due to world wide
over-supply of oil, so that there
is certainty only of impermanency.
We can take the gains but with
full knowledge of the risks, and

national oil

Arab countries."

net sellers

included

ties

newly-raised $118 million to work
•

to 98:2%.

The Bears

first/portfolio reports of
the newcomers, including Lazard
Fund, which started to put its
%

"Our

Business

.

any long-term stoppage of the oil
longer-maturity government flow, but we also believe that as
bonds) and at National Securities time goes on, an increasing share

The

advertisement.

American

and

of its

funds.

Mail this

of

case

Vegh from 80.9% to 93.3%, at
Fidelity
Fund
from
88.2%
to
93.1% (via large-scale liquidation

Street, under the sponsorLehman Brothers, which
■j began operations on June 2 with
$185
million
of
newly - raised
.

the

de

Leh¬

and Pennroad.

tabulation

in

increased

curities

Considerable additional buying,

I

Si

com¬

of

few years. We

a

there

that

-

companies, 5

As a result of their activities
activity. This picture manifested
approximately the same attitude /during the quarter, the proportion
as in the preceding quarter. A net
of net assets invested in risk se¬

tion

sible growth

exploitation

properties beyond
know

East

their prices do not

as

some

Shares, said:

man,

investing for in¬
come

include

Middle

the

about

long

as

On the one hand,
In
quarters confidence in of the 'take' for the Arabs.
the long-term prospects is being fact, they win probably end" up"
Loomis
Sayles,
Massachusetts fully maintained.
For example, with as much as the traffic will
Life, New England, Stein Roe & in answer to our query, Harry I. bear.
Nevertheless,
while
the
Farnham, Value Line, Welling¬ Prankard,
President,
Affiliated honeymoon period is over, we are
in

Fund

including

I

attitudes.

their

being net sellers and 1 manage¬ ton, de Vegh, Fidelity and Funda¬
the
savings
matching its transac¬ mental" Investors,
tions, and another (U. S. & for¬ banks-owned Institutional Inves¬
eign) completely abstaining from tors Mutual Fund and iVL I. T. ■

in

of

us

policies re¬
garding the international oil issues

6

buying

by

investment managers'

ment about

curred

A mutual fund

cursions

oil

ments of the

Dreyfus
Fund, Axe - Houghton under review, naturally indicates
Fund
"B," Axe-Houghton Stock somewhat more ambivalence in

allo¬ Fund, Boston Fund, Broad Street
Investing, Institutional Founda¬
practically un¬ tion: Fund, Investors Mutual,

companies

79

changed at about 20%.

V/SiV/SS/MW/A

INC.

■

the

cated to cash and defensive secu¬

1033 THIRTIETH STREET, N. W.

SECURITIES,

of

Policy

undertaken

survey

of net purchases since the advent of the new Mid¬
equities, was demonstrated by dle East crisis which occurred
National Securities Stock Series, after
the
close
of
the
quarter

managements,

the

growth in principal and income.

IUND of

Thursday, August 7, 1958

.

.

great bullishness,
a
comparatively

Particularly
evidenced
by

of

CROUP

with 7 against 3; and Standard of

A

22, showing that the largest group

companies active in the atomic

COMMON STOCK

Jersey, with 8
sellers;
Gulf,

4

Post-Iraq

of

of

Igfc^ audMI

3

Bulls

Some

stocks selected from among those

V/////////////AO

only

versus

continuation

The

Development Mutual Fund, Inc. This
more than 75 holdings of

W.W//AV£S///t

New

of

against

buyers

mons.

fund has

field with the objective of

Standard

Market
,

send^vou a free

prospeetus describing Atomic

4

buying and

.

48.4%. In the of the year among the 1,200 stocks Indiana, now also branched out
preceding
quarter available through the New York into Middle East commitments,
this proportion had been 40.8% in Stock Exchange's Monthly Invest- with 7 buyers and only 1 seller.
defensives versus 59.2% in com- ment Plan.
,
hope that agility of the
latter, 51.6%
immediately

We will-be

most

sellers; followed by Texas Com¬
pany, with 10 buyers and 5 sellers;

Midst Rising

ATOMIC

the

as

oil issue, with 13

any

managements

Funds Still Cautious

V

Royal

managements.

continued

Dutch

.

.

.

Information Folder and Prospectus on Request

NATIONAL SECURITIES & RESEARCH CORPORATION
Established 1930

120

Broadway, New York 5, N. Y.

Volume

183

Number

5766

.

.

.

The Commercial and Financial Chronicle

"(517)

The.
company's total oils now
amount to 16% of the portfolio,
with important holdings of the iniernationals including Gulf, Royal

,

Dutch,

Standard
New

of

Standard
Texas.

Jersey,

\

*

K

-■'1

*

(April-June, 1958)

California,

of

2*

Issues in which transactions

by more than-one- management group occurred. Issues which more managements sold than
bought are in italics. Numerals in parentheses indicate numberof managements making entirely new purchases or completely
eliminating the stock from' their portfolios. (Purchases shown exclude shares received through stock splits or stock dividends.
Changes through mergers also disregarded.)
'
*

and

.

«

.

Preachers of Caution

;

r

—Bought—

Resolute expressions of caution

f

include

firom

this quarter-end message
Trustees of the fund bear-;

Of the

ing" his

"Our

name:

current in-1
best be de-;

.vestment policy can
scribed as one of caution
near

term and extreme

selection

of

reserves

future calls for
care

v

the

in

more

.

.

.

NO. of

No. of

No. of

Trusts

Shares

Shares

Trusts

selection

5(2)

17,000-

Deere

5

20,200

International Harvester

I

1

;

28,400
55,279
3,500
1,570
17,500
40,900
22,500

^

—_—

1

—

33,000

_

1,000

:

5(1)
1

*

Bendix Aviation

Boeing Airplane
Douglas Aircraft

__ __

:

Dynamics
Aircraft

Martin

500

North

44,600
51,700

7
,

Nonei
1

American Aviation.

United Aircraft

None

_________

Aerojet-General

14,100

:

Curtiss-Wright

*

_

'1,-—

;

require a vigorous recOvery in business to justify the
present level of stock prices," say
Messrs. Johnston and vOn
der

19,3b0

4(4)
1

Heyde

the

of

Johnston

Fund,

92,500

American

1(1)

5,000
62,200

Eastern Air Lines

3(2)

4(3)

14,700

United

Airlines

and the dynamic
gijowth forces which are still pres¬
ent, such a vigorous improvement
can

will

economy,

come—but

it

now

appears

) that it may take somewhat longer
tor materialize

apparently
stantial
view

-

than

expect.

now

reserves

the

of

are

high

people
Sub¬

many
.

.

still

level

and

the

critical

Middle East.

held

of

situation

in

stock
the

in

The latter increases

'• the

inflationary potential already
'< existing in our domestic economy
r—but
this
is
an
unpredictable
'Situation.
It injects the risk of
) untoward
developments
against
i- which a balanced position is the
; best insurance." -.:

Likewise soberly, says; Emerson
W. Axe: "Earnings of many cor-

I,
t

[ porations showed substantial declines in the first quarter of 1958
ancf the second quarter may be

.

»

,
•

little

This and the

worse.

un-

certainty concerning the time and
extent of the next recovery make
a»

conservative investment attitude

still desirable. Even

more

General Motors

75,100

2

13,500

Chrysler

3(1)

29,100

Ford

impor-

4,500

4

15,800

Borg-Warner

3

Kelsey-Hayes

1

400

Midland-Ross

2

2,700

v#

3

12,400

2

None

; ■;

2(1)

5,500

3

7,50b

2

1

5

> ;■

3(1')

2(2)

2,000
900

1

2
2

7,250

1

10,000

have not
given much weight to the business

decline."

-

-

~

;

:
,

i

-

)
•

KD

3,300

1(1)

\

13(900

None

None

MasOnite

2,000

National

7,200

National Lead

1

;
,

Air Reduction

Allied

2

15,500
5,200
9,278

3,000
15,200

;

•

2

4(2)
3(1).
5(2)
2(2)
3(1)

.

5(1)
2

:

None

;

'
•

1

1

KD
J.

id:)

4

'

Beverages

None

2'

69,800

American Cement—

1

10,000

Armstrong

—

-——

—

Podd Machinery &r Chemical

kpypers

31,300

-

——

Monsanto Chemical

2

1,612

Rohm &

None

100

1

18,200
56,200
1,000

2

,

—.

—

PfatttL

—

-

None

None

None

3(2)
2(1)
3

7,500
30,500
43,455
10,500
1,088
10,100

2(1)
5(4)
2(1)
•.

Continued 6n page

23

2(1)

5,042

4(2)
1(1)

16,900
1,100
8,200

2(1)
1(1)
3
1

2
2

Bestwall
Carrier'

None

12,f00

L_,„—_

Gypsuni

i

none

—

i—

L

Celotex —:L._L
Flintkote

L---

„L„

3,000
12,600

Georgia-PacifrO

5,000
4,900
11,800

Johhs

Ideal Cement

—

'500

12,700
23,700

Island Creek Coal*—

None

None

84,000

Peabody Coal

None

Nohe

Union Carbide*

-

Coal & Coke

■■

Consolidatlott Goal**

17,000

—

——

^ "

None

Continued

on page

_—g—

i.i——
1—I—!

—

Manville.^

i
•'r*

■I

'

•

'•

mm.'

-r—-~~7

SERVICE INCLUDES:

1

■

i

;

-

•

Massachusetts Investors

None

!

Growth Stock Fund

2(2)
Nohe

Massachusetts Investors T

of the

STATISTICAL

416-page
business, kept up-to-date

DATA

,

,

—

BUILDING

Century Shares Trust

_

covering management

resul.ts, dividend records,
every;

,

COMPANIES—the

the year 'round.

on

1

<M xJU

<

1(D

-

INVESTMENT

"bible"

500

5,770
None

*■ ^

1

Nohe
3

'

Lehigh Portland Cement-Marquette Cement

None

8,500
4,200
3,000
12,417
Nohe

Canada General Fund

tax $tatus, etc.—

leading fund.
BUSINESS

IN

LIMITED'

MUTUAL

FUNDS-

basic, practical sales promotion manual,
complete with all materials, for easy use.
a

YOU

AND YOUR DOLLARS—an exciting visual
presentation, to. dramatize yout sales story.

mutual fund sales;

for you!
Hundreds

of

investment

Bond Fund

THE MODERN* WAY TO INVEST-the best sales-

clincher irv the businessr plus

;

other book¬

lets and direct mail material.

4

dealers
<

-

throughout the country are using *
the Wiesenberger Dealer Service to
build more business-more profits!
This continuous program of sales
helps, planned and tested by top
specialists, can do as much for you.

dio. Also cdiorful window & officd
INDIVIDUAL SERVICE—tailored

OF BOSTON

.

READY-TO-USE ADS—for newspapers

and

ra-

displays.'

to your spe¬

A prospectus relating to the shares of any of these separate
investmentfunds may he obtainedfrom authorized dealers or

cific needs-for the asking.
"WIESENBERGER

INVESTMENT

REPORT (WIR)-

VANCE, SANDERS & COMPANY

outstanding market letter, with frequent supplementary, studies-in-depth.
an

.,

,111

DEVONSHIRE STREET

BOSTON
Write for full information

arthur wiesenberger & co.
,

Members of New .York Stock txchange
and American Stock

61

BROADWAY,




New

packed service which helps
pects..

Exchange
York

6,

N. Y.

IS

.

on

this action'

you

find

KEW

pros¬

and turn them into customers.

5(1)
4(2)

'

Building, Construction and'Equipment?

Cork-

1
1(1)

None

9,500
12,000

Diamond Alkali

li,400

1

2(1)

None

Michigan Chemical

i

'

—-

2,500
45,500

Internatl Minerals & Chemicals

Spencer Chemical
Tennessee Corp.

3
None

None

—

Intel-chemical—

29,300
70,000
6,500

3(1)

6,500
16,100

Hooker Chemical*

2,100

Oliii Mathiesonr

3(2)'

6,700

—-

Hercules Powder

None

3

•

;

3

Coca-Cola

Freeport Sulphur

None

2(1)'

38,100

2,200
4^300
70,400

700

.

Nohe

4(4)

Eastman Kodak

KD

1

None

—

14,200

2,700

2(1)

Security-Fir^t Nat'l Bk. of L; A.
1

None

5(3)

141,600

Du Pont

14.400

None

Midland

None

Columbian, Carbon
Dow Chemical

(
'

-

3,100
None

Marine

5(1)

None

Atlas Powder

;

129,600

None

None

i

2(1)

3(2)
None

None

-

2(1)

2,040

American Agricultural Chemical ,T None

Vick Chemical*

i

3(1)

4,180

American Cyanamid
American Potash & Chemical—

6|700

2,34-8

3(2)

34,500

None

2

5<00
5,000

3(2)

4,000

None

2(2)

.'

•

50jt00

—

Chemical———

5,000

4

1

2(1)

-

———■ _

42,600

1

None

—11,960

4,550

4(1)
KD

1(1)

;,,

——

Gypsum

53,900

1

1

None

9,000

Lone Star Cements

22,900

v

None

20,000

None

101,400

General Portland Cement

3(3)
2C2)

1,000
2,5b0

1(1)

None

4,000

—

American Radiator

5(1):
2(1)
5(2)

3(1)

——„—

New York Trusty

—

2

8,500

—

Trust

Manufacturers

None

I

3

;

analysis
of 4 investment
values leads to the conclusion that
common
stocks
are
very
high
whether based on current and
near term (earnings or their relaiionship ta bond yields," warns T.
ftowe Price. "Again inflation sentiment is in the ascendancy, stock
prices have advanced sharply, and
bond
prices
have been weak.
"pur

.

.i V

Irving Trust__i

f tant is the fact that at their lowest
recent levels stock prices

5,000

lNone

Manhattan
1
Corn Exchange—
First Bank Stock-—
1——
First National Bank of Chicago
First Nat'l Pity Bank of N. Y—

1,000
11,200

:

; Banks

•

...

1(1)

3,000
1,000

1

Chemicals & Fertilizer

4(1)
5(4).
7(4)

1,500
500

.

1

4(1)

i

2(2)
KD

Pipe & Foundry

None

'

2(1)

1

1(1)

———

Weyerhaeuser Timber

Chemical

200

1(1)
1

;•

2

U. S. Gypsum

Yale & Towne

Chafse

12,000

2

.

41,600

KD

19,800

3,000

None

___________

6

•

2,700

1,000

———

3,300

:

Warner

Tranre

2(1)

,

Thompson Products
Tirhken Roller Bearing——.
Murray Corp. of America

32,200

None i

-

8,000

.

1

18,156

—

2

____.

Stewart

Ruberoid

1(1)

____.

Dana

10,600
1,000

i

2,000

S.

:

Clark Equipment

500

1(1) f

<

^

S. Plywood

Bosch Arma_____.

American

Rockwell-Standard

U.

Automotive Equipment
1

Penn-Dixie Cement-

1,000

U.

15,300
170,500
95,400

;

8,500

8,600

28,500
20,000

____.

;

•;

38,900

.

prices relative to current earnings,

,

10

—

3(1)

Automotive

,

-

2(2)
1(1)

200

Air Lines—

1,700

Elevafof—

3(2)

"With the resiliency of the Ameri¬

.

6tis

42,000

17,000
Airways

5,000

40,000

_

Pan American World

Minneapolis-Honeywell

4

r-

6(4)

,

2

Airlines

"It will

l

1

ities..
.

17,500

1

7,500
4,500
1,000
43,320
5,500
27,200

McDonnell

4(2) -

3(2)

3,700

General

0,100

28,400
10,000

Garrett

Lockheed

•

2(1)
.■■■•

'

;?(

-

6(1)

included Allegheny Ludlum, Cities

Service, Crown Zellerbach, Genera! Telephone, Kennecott, Mar¬
tin, Phelps Dodge, and Texas Util¬

|

6(2)
4

3(2)

invest-

of

Agricultural Equipment

3d):
5(3) !

The

than average

This fund's eliminations

ments."

No. of

Trusts

6

of cash and gov-

! ernment bonds increased
;

No. of

Aircraft and Aircraft Equipment

.Holdings of common stocks were*
reduced slightly during the quar-;

;ter and

No. of

Shares

in the

investments.-

new

-—-Sold

No. of

Shares

the;

over

care

—^Bought—

No. of »

Trusts

Chairman-

Putnam,

George

-Sold—-

6t

CHICAGO

YORt

Broadway

izo

South LaSallc Street

LOS ANOELBS
>10

We»t Seventh

Street'

23

22

The

(518)

Commercial and Financial Chronicle

Companies
End of Quarterly Periods March and June, 1958
Com. Stks.

Investment Bonds and

Per Cent of Net Assets

Thousands of Dollars
End of-

Open-End Balanced Funds:
t

March

American Business Shares

3,653

Axe-Houghton Fund A.

4,511

Axe-Houghton Fund B
Axe Science & Electronics..:

Fund

.

...

Broad Street Investing
■

Commonwealth Investment
Diversified Investment Fund

9,787
1,212

....

Bodge & Cox Fund
.

General Investors Trust

13.2

35.9

33.4

50.6

53.4

10.7

9.9

38.7

39.2

50.6

50.9

1.9

28.0

29.2

69.3

68.9

28.9

§28.2

63.2

§70.0

Purchases??

None

169

2.711
4,382

2,293
4,978
1,563
1,685
6,053
4,202
2,375

1,711
3,815

25.0

60.2

74.8

3,323

3.2

2.1

'[39.3

■•37.5

$57.5

$60.4

3,168
10,330

1.7

2.8

20.5

18.5

77.8

78.7

3.3

8.2

24.0

23.6

67.7

68.2

5.177

930

2.0

1.4

29.3

28.0

68.7

70.6

3,137

1,889
3,362
3,872
5,023
2,253

347

7.1

6.1

28.1

26.9

64.8

67.0

227

138

7,728

6,697

~

Total

Sale#**

695

24.0

7.9

524

219

1,889
115

2,385
2,107
I,470

2,324
110
<

v

35

505

5,017

72

282

,;:.V 72

198

106

198

106

1,638
56,665

756

67.0

42,707

1,492
24,757

14,159

20,807

22,836

12.2

12.7

25.6

26.9

62.2

60.4

299

312

8.2

7.5

23.5

22.6

68.3

69.9

364

756

684

3.8

7.5

19.8

17.7

71.4

74.8

N.A.

506

N.A.

3.6

N.A.

N.A.

N.A.

N.A.

9,116

5,469

0.9

0.5

34.2

32.5

64.9

-

Sales**

0.2

377

Eaton & Howard Balanced Fund

13.5

None

2.7

....

1,316
4,691
1,703

.....

Purchases?-*

15.8

520

«...

Total

2,542
9,037
2,203
1,707
9,066
4,989

2,415

Axe-Houghton Stock Fund
Boston

3,665
4,375
1,702

Common Steeks

Total

Total
June

March

June

March

June

March

Of this: Portfolio

Portfolio Securities

Other than Governments

Net Assets

End of

End of—

•——End of

—

June

-

Per Cent of

Per Cent of Net Assets

Thursday, August s, 1953

-(In Thousands of Dollars)•

and Lewer

Grade Bonds 9t Pfds.

Preferred Stocks*

Net Cash 9c Governmentsf

..

Security Transactions by the
79 Investment Companies
During April-June, 1958

Balance Between Gash and Investments of 79 Investment

Net Cash & Governments'?-

.

■.,2"

..

Group Securities—

Fully Administered Fund
-

Institutional Foundation Fund

—

Investors Mutual
Johnston Mutual Fund

448

474

7.6

7.4

32.0

32.3

60.4

60.3

599

382

324

157

Knickerbocker Fund

377

2,426
11,548
2,636
2,648
1,028

3.0

18.6

14.2

13.8

82.8

67.6

588

588

4,194

2,761
3,112

2,761
1,687

1,641
12,694
3.712
1,473
1,903
1,773
10,886
27,829

Loomis-Sayles Mutual Fund
Massachusetts Life Fund

10,985

National Securities—Income
Nation-Wide Securities
New England Fund.......

.....

.

...

George Putnam Fund
Scudder, Stevens & Clark Fund

.

48.8

30.0

61.4

63.4

28.0

66.6

58.4

3,057
1,234

876

306

1.7

2.1

5.8

8.6

8.2

27.6

28.4

63.8

63.4

1.7

1.9

44.4

43.0

53.9

55.1

271

305

90

111

6.8

6.4

28.1

26.8

65.1

66.8

206,753

149,794

117,919

91,547

13.5

15.0

0.5

:

0.5

86.0

84.5

7.2

1.0

1.0

83.9

91.8

7,373
2,539

19.8

19.9

None

None

80.2

80.1

5.6

4.6

5.6

6.4

88.8

89.0

991

18.5

6.65

0.6

None

80.9

93.35

16.7

16.9

None

None

83.3

83.1

9.0

None

None

93.85

91.0

17.0

21.5

None

None

83.0

78.5

8,994

all,285
3,015
1,211
6,695
2,974
5,374
3,771
2,516

II,285
1,345
1,211
6,446
2,971

38,722

a4,728
3,405
1,651
8,374
4,447
4,214
5,492

4,728

10.1

1.7

1.3

None

None

98.3

98.7

888

751

888

751

7.7

5.8

88.2

93.1

10,923

22,858
14,660

5,872
142

5.0

13.6

28.4

1.8

7.8

7.5

88.8

90.7

7.3

7.0

34.3

35.0

58.4

58.0

1.291

10.6

9.0

30.9

28.4

58.5

62.6

10,333
1,260

4.7

6.8

27.6

27.3

67.7

65.4

2.5

1.8

38.7

36.8

58.8

61.4

401

442

2.1

2.1

35.4

35.2

62.5

62.7

1,731

2,584

7.3

9.7

36.3

29.5

56.4

60.8

4.2

73.8

94.7

91.1

r

11.2

96

<

1,167
56,098

1,536
58,258

147

170

150,425

156,477

51,910

62,778

2,554
6,654

1.941

2,845
2,612

35,586
1,133

...

Sub-Total Open-End Bal. Funds.

30.2

31.4

3.4

930

Value Line Income Fund.;

Wellington Fund
Whitehall Fund

32.7

6.6

2,080

1,803
2,017
1,476
6,747
1,666

Shareholders' Trust of Boston
Stein Roe & Farnham Fund
Value Line Fund-.

18.0

7.2

92.2

866

...

18.5

51.8

3,744
1,146
3,078
1,670
1,922
11,697
3,876
2,236
2,283
2,562
12,320
49,889

2,673

....

Mutual Investment Fund

'

702

15.0

1.1

6.1

575

1,758
1,825
1,172

1,527
1,653

2,463

'

537

726

1,518
5,098
2,293
1,307
2,240

1,003
7,790
1,293

2.445

773

10,286
31,047

9,604
26,607

776
752

Open-End Stock Funds:
Affiliated Fund..
Blue

Ridge Mutual Fund

Bullock Fund
Delaware Fund

...

de

Vegh Mutual Fund-Dividend Shares
Dreyfus Fund
Eaton & Howard Stock Fund

J15 134

Energy Fund-...
Fundamental Investors..

Incorporated

32,337

3.3

3.1

None

None

96.7

96.9

105

111

0.8

0.8

None

None

99.2

99.2

304

142

304

1,251

1,836
23,342
2.944
23,715
1,773
29,771
7,893

3.7

4.5

None

None

96.3

95.5

4,431

871

5.7

9.8

1.3

0.9

93.0

89.3

10,052

19,403

2,779

None

8,900
1,206
al3,451
1,054
1,455
9,163
1,067

4,481
9,420
2,779
6,123

Massachusetts Investors Trust. 111"!
Massachusetts Investors Growth Stock
National Investors
National Securities—Stock
Pine Street Fund
T. Rowe Price Growth Stock

Scudder, Stevens & Clark—
Common Stock Fund..
Selected American Shares—
State Street Investment
Texas Fund

United Income Fund

None

None

97.7

4.7

None

None

96.1

95.3

1.5

1.1

None

None

98.5

•98.9

2,337

5.6

1.8

None

None

94.4

98.2

779

5.5

5.5

9.8

11.7

84.7

82.8

955

433

858

2,419

2,906

22.6

24.4

3.0

3.6

74.4

72.0

409

351

409

351

1,176

5.456

.

408

1.8

2.2

None

None

98.2

97.8

3,507

3.4

5.0

0.2

0.4

96.4

94.6

1,928
a5,430

a5,456

1,923
5,310

72

132

4.4

95.5

94.5

None

88.8

38.6

0.5

93.9

95.1

6,730
1,600

10.1

6.2

12.2

18.3

77.7

15.1

6.4

5.3

7.0

79.6

36.6

4.6

2.8

2.8

6.6

92.6

90.6

18.3

13.2

0.7

0.7

81.0

<86.1

140

114

2.0

1.5

None

None

98.0

98.5

1,169
1,461

1,350
1,689

16.7

18.0

0.3

0.5

83.0

12.6

13.6

8.9

273,304

303,122

8.7

8.3

1.9

2.3

423,729

459,599

7.8

7.5

14.2

13.6

2,396
1,133

4,462

3.6

5.3

0.7

840

6.6

4.5

H27.3

Overseas Securities
Pennroad Corp

oao

4'oftFi

' U
1,202
2,026

1,510
2,045
4.815
2,319
12,581

1.9

4.2

1.2

10.5

12.1

7.7

6.3

7.6

1.8

10.3

8.3

0.2

6.7

5.5

0.2

689

5.6

3.0

8.4

2,329

4.7

5.1

2,839
3,989
6,843

4,813

501

615

501

533

81.5

86

197

86

197

78.1

77.5

None

220

None

220

89.4

89.3

234,220

157,407

183,580

143,426

78.0

78.9

440,973

307,201

301,499

234,973

0.5

95.7

$65.6

•

—

61

6,813
4,725

31.3
"

1,342
13,035

v

-

<

2,725

94.2

438

1,797

438

1,645

64.2

2,375

2,265

167

1,089
1,057

0.9

96.9

94.9

320

1,159

320

7.2

81.8

30.7

414

759

414

759

1.8

91.9

90.6

179

1,456

179

1,456

0.2

89.5

91.5

al,017

a757

1,017

757

94.5

6,647
1,572

5,187

6,647

5,187

575

740

527

—

—

—

8.9

93.1
86.0

_

88.1

3.2

3.0

92.1

91.9

941

1,620

941

1,620

§10.1

§9.0

§86.0

§89.7

473

417

473

417

$$9,174

2.3

2.8

91.0

92.8

$$10,114

17.5

16.8

80.9

81.8

11,864
10,791

10,174

1.4

9,861

8,769

7,852

19,293

19.4

17.4

None

None

80.6

82.6

None

3

None

None

60,869

59,996

7.0

6.6

6.2

6.3

87.0

87.5

37,031

36,030

30,219

31,540

484,598

519,595

7.7

7.3

12.8

12.4

79.5

80.3

478,004

343,231

331,718

266,513

included by

reporting

stocks*

Mnniiv's

Plus

approximate equivalents).
TiBonds and jpreferreds Irrespective of quality
classification;
^Common stocks only,
gin percent of gross assets.
TTCost cf purchases.
**Proceeds from sales.
^Estimated.
ggOwncd

Minus

Companies




-

1,443
11,749

61

"7.4

20,087

.1

•

-

35,224
4,291
13,419
10,949

$$8,540
-

6.7

7

18
13

5

Approx.
Unchanged
4

by 83 savings banks, etc. in-New York State,
short-term

a

Exclusive of

notes..

SUMMART

hanges in Cash Position of 76
Investment Companies
June 30, 1958 vs. March
31, 1958

Balanced Funds
Stock Funds

9.3***

75.5

72

6,730

1.6

4 977
20087

...

company.
^Investment bonds and preferred
through Ba for bonds; Fitch's AAA

Open-End

>

*'•.

8,584
1,342'
14,748

1,176

4,297
4.816

IIIIIIIIII

,

21,295
7,384
2,242
15,829

300

0.5

8,900
1,069
13,451
1,054
1.455
9,163

789

2,204

3.9

"i

None

732

97.4

None

1

C

2.6

3.9

1.1

...

so

2.3

871

18,580

6,551

1,676
3,578

thrJuJ^

81.2

7,820

786

o

wtPowte^hort-terni nstei vhere

83.9

4.4

Niagara Share

investment

4.5

11.4

II-III

Total Closed-End Companies
Grand Total

5.6

7,820

991

626

U. S. & Foreign Securities-

14.3

5.6

General Public
jtuuiu; Service
oervice

Tri-Continental

10.5

0.6

I"

Lehman-Corp.

77.4

11.2

Investing

American International—
Carriers & General
General American Investors

81.1

25

Wisconsin Fund

Closed-End Companies:
Adams Express
American European Securities'I

92.65

0.1

18,527
1,369
10,961
1.945
4,691
6,805

III

Total Open-End Funds

92.7

0.1

7.35

16,777
1,632
15,915
4,088
7,051
8,447

United Science Fund
1 Value Line Special Situations

Sub-Total Open-End Stock Funds

None

22.5

7.3

149

II

I

None

13.8

12
:

United Accumulative Fund
United Continental Fund

National Shares

•

6,123
1,194
a21,295
7,384
2,242
15,829

Sovereign Investors

Wall Street

1.1

5,374
3,771
2,516

2,076

24,013
14,660

12,376
2,539
18,101
1,206
22,685
5,677

———

4,421
4,214
5,492

4.1

—

Institutional Investors Mutual Funds
§
Investment Co. of America

7.561

3,030

*

Com. Stock Fund
Investors

Istel Fund

56

1,651

10,254
11,933

General Capital Corp

Group Securities

6.15

2,008
21,763

66

Fidelity Fund

.

1,993

Average Allocation by 79 Companies of Assets to Cash and
Equivalent, Defensive Securities, and Risk Securities
Total

29

7'

35

6

1

12

37

12

76

March 31,1958

Net cash, etc., and Governments
Defensive securities (investment
bonds and preferreds)

12.8

Risk securities (common stocks plus
lower grade bonds and preferreds)

79.5

7.7%

100.0%

June 30,195S

7.3%
12.4

80.3

100.0%

corporate

Volume

188

Number-5766

.

.

The Commercial and
Financial Chronicle

.

&

frw
—Bought—

,

Sold

No. of

No.-of

Trusts

Shares

Continued from
page 21

-

No. of.

No. of

Shares

Trusts

Join
:

Containers & Glass

3(1)

31,200

2

7,600

Libbey-Owens-Ford Glass

Owens-Corning Fiberglas

__

23,700

Owens-Illinois Glass

2(1)

15,000

Thompson (H. I.) Fiberglas

2
3

p;,„

i

2,000

American Can

2,900

Continental Can

200

None

Corning Glass

None

1

23,800

1(1)

become associated with First Cali¬

1(1)

fornia Company, 300

1,400
None

7(2)

—

4(1}

-

1

3

2J00

11,700

(4(2)

-

5(2)

35.+200
8,000

3(2)

Abbott

16,000

7(2)

21,900

Parke, Davis

13,700

Pfizer

2(1)

3,400

Smith, Kline

1

4,000

Lilly (Ely)

5,000

2(1)

1,900
25,100

2

21,500

3(1)

—____

25,600

6(2)

________

25,300

4(1)

(Chas.)__
&

1,500

French___„____

Mead Johnson

None

,2(2)

1(1)

—^

3(1)

None

None

1,760
_

Merck

8(1)

1

None

Laboratories.

Bristol-Myers

14,700

Searle

„

181

4,600

1

500

2(1)

9,000
37,600
12,000
31,800

3

2(1)
4(1)

5(2)
2(1)

51,700
3,500

3

26,700
12,000

1

(G. D.)

Schering
Sterling Drug

None

None

2(1)

1,300

None

None

1

500

7,900
500

__

Cutler-Hammer

International Tel. & Tel
McGraw-Edison

Philips' Lamp Works—
(50-guilder shs. or equivalent)
Radio

Corporation
Raytheon Manufacturing
Sunbeam

3,000

25,000
13,200
5,000

3

1

1(1)
2(2)

8,600
12,200

2

5,700
1,232
3,000

2

1

37,400
31,400
1,500

1(1)
1
1

2(1)
2

•

2(1)

4,400

2(1)
3(1)
3(1)
3

1(1)
2

V

4(2)
4(1)

1(1)
1(1)

None

None

None

None

2,000

1

None

None

4(1)
2

3
1

7,427

2(2)
8(3)
2(1)

100,300

6,300
10,000

2(1)

8,700
39,500

3(2)
6(2)

j

.

8,100
5,800
28,700
5,200
15,000

Commercial Credit

Family Finance
Household Finance

2

•

1

None

None

Seaboard Finance

None

None

6^000

1(1)

37,100

2(1)

'

None

2,000

1

200

1

General Foods

Pillsbury Mills

None

'

None

400

1

1

2,000

Oats

__

Biscuit

United Fruit

Corn Products

Refining

1
None

4,600

1(1)

None

None

55,100

5(1)

None

None

Standard Brands

1,700

2

None

None

Sunshine

2,200

3(2)

Biscuits

Insurance—Fire & Casualty
2

1,400

1

1,141
39,000

3(2)

Continental

Casualty

None

_____•

Continental Insurance

None

1,700

8,457

Fireman's Fund
Government Employees Insur.__

None

2,500

Hartford Fire

None

None

4(2)

25,450
2,000

None

None

2

2(1)
2

3,215
28,500
4,200

2,700

.__

Northern Insurance

None

U. S.

3,000 :

2(1)

15,800

Aetna

10,410
3,000

National Life & Accident

500

Connecticut General Life

18,000

3,700

,

Continued

the pattern of
rebuilding of profits
will be quite uneven and

Knickerbocker

among

the

on

of

this

a

new

upward

is




—

long-term
capital
and
growth for its shareholders.

Atlanta

—

also

of

man¬

During

the

past

quarter,

fund

the

displayed in coal and certain

bought

no

!'

stocks.

Other

cop¬

.

industries in which

con¬

siderable selling accompanied the
buying included aluminum, build¬

ing, chemicals, drugs, glass and
containers, electricals, heavy ma¬
chinery, natural gas, office equip¬
ment, paper and tires.

of popula¬
That decade

The Dreyfus Fund is a mutual fund
in which the management

risks in that direction,

the

or

DREYFUS Corp.,50 B'way., New York 4

PIONEER
•

are

that

equities

balance,

on

purchase

of

as

50,000

new

a

Here

stock

issues.

Investors Mutual made ini¬
tial commitments in 3 aircraft is¬

FUND

the

was

Chrysler, to

50,000 shares

of

M. I. T. sold all its

the

tune

of

INC.
•L

being bought by
including Inves¬
(26,000 newly). Also

managements,
Mutual

in

good

demand

was

Lockheed,

Prospectus

from

your

upon request

investment dealer,

'

acquired by 5 managements, again

including Investors
400

Mutual

Group (24,000); with,

Continued

130,000

on
on

or
4,

(17,-

newly) and Broad Street (15,-

VALUE LINE

drouth with

the other
page

FUND

.

.

from

V

*

«.p

RESEARCH

&

MANAGEMENT, INC.
67 WALL STREET
NEW YORK 5, N. Y.

!

24

VALUE LINE
INCOME FUND

objective is possible Capital

24

A

mutual

Income Secondary.

fund whose primary
objective is income.

PHILADELPHIA

VALUE LINE
SPECIAL SITUATIONS FUND

—

Mail the
coupon

East 44th

Gentlemen:

FUND
INC.

A Mutual Investment Fund

possible Capital Appreciation through Investments
in "Special Situations"

LINE

FUND

for Free prospectus.

DISTRIBUTORS, INC.

Prospectus

——

Request

DISTRIBUTOR

Street, New York 17, New York
*

on

fflaf nejfw/cWr(jO*

CF-3

'

(established isei)
Members New York Stock Exchange

Please send me, without
obligation, Prospectus checked below:

□ Value Line Special Situations Fund
□ Value Line Fund
□ Value Line Income Fund
NAME

,

J

next most

highly favored,
6

tors

■

was

sues, namely General Dynamics,
000 newly),
while the National
Lockheed, and North American
Aviation; and also in IBM (4,400 Securities Group eliminated 40,000
shares) and Lone Star Cement; shares. United Aircraft attracted
while eliminating its 25,000 shares
7 managements, including the Tri-<

Chrysler and

4

Sought

ac¬

quisition; on the other hand re¬
ducing its holdings of 10 retail

of

J"

i

Your

years.

conviction

Corporation, which in¬
a

<

Booklet (prospectus) free from your dealer

FAVORED GROUPS

Aircrafts

American Aviation

its

and

takes what it considers sensible

most highly favored
Boeing, bought by 6
managements,, including new ac¬
near-term
risks
in
stocks
are
quisitions by the United Funds
limited in
relation to the long
Group
(18,400 shares) and Drey¬
term opportunities they afford."
fus (15,000); the only seller being
National Aviation (10,000). North
Lehman Buys Big Steel

included

hopes

to make your money grow

surge

witness

upon

request

Los Angeles

number

managements particularly favored

confined

company's investment policies

based

CITY

Chicago

that

expected.

1(1)
2(2)
page

Fund

possible

upon

the

buying or selling, rather
the number of shares in¬

Typifying the argument of the
Banks, which had been prime
market, if not the fund industry's favorites during the reactionary
bulls, is this statement from Ed¬ markets of previous quarters, lost
ward P. Rubin, President of Se¬ a
good deal of their erstwhile pop¬
lected
American
Shares:
"The ularity,
but
with
buying
pre¬
'long term future,' in which we dominating. The same conclusion
are primarily
interested, is com¬ applies to finance companies, with
ing closer. 1960 is only 18 months increased
selling
accompanying
away—it begins a decade in which some continued buying.

VALUE

Lord, Abbett & Co.*
—-

Fund

funds

The

Common Stock Investment Fund

Prospectus

New York

their current

Long-Term Bullish Reasoning

5

objectives

on

volved.

per

None

Fund
Investment

cover

practically all its purchases to the
textile
industry. Wisconsin was

—

income

than

quite dis¬
following
groups:
aircrafts,
appointing; due to increasing com¬ airlines, insurance, rails, steels,
petition and difficulty to pass on and oils; retail, utilities.and tobac¬
rising costs, many companies will cos selectively. Interest was also

It seeks

are

the

We think that

i

A

nearly 450 stock issues,

on

1(1)

None
:_

our

trans¬

1

1,000

Life

of

agements

FUND

2(1)
1

is

policy to fol¬

Insurance—Life
2

from

21

page

1

None

Fidelity & Guaranty__.___

based

drawn

on

None

(N. Y.)
Springfield Fire & Marine.
Travelers

'

changes,

tabulation

1(1)

3

Maryland Casualty

attitude

investment

Transamerica.

/

2(1)

KD

cautious

a

shares of U. S. Steel

None

Mills

Montgomery
the "Pacific
Bullen
Brush,
Slocumb & Co., InCi
In the past
he was sales manager for Walter
C. Gorey Co. Mr. Jones was for¬
merly with H. L. Jamieson Co.
of

members'

Coast Stock Exchange. Mr.
has
recently been with

,

low at the present.

Lehman

None

General

29,300

We still

creased

Continental Baking
Foremost Dairies

slightly re¬
believe, however,

havo

.The following analysis of port¬

folio

is

and

G.~ Jones

Grove

Policy Toward Industry Groups

is

optimism

and

Getty Oil and El Paso Natu¬
ral Gas;
and sold paper stocks
while making an initial commit¬
ment in 35,000 shares of AT&T.

actions in

arrested

penditures of recent

2(1)
1(1)

Ford

of

industrial
fruition of the huge research ex¬

1

Industrial Acceptance
Pacific Finance

Beneficial Finance

of

Street also
liqui¬
holdings, including
Genqral Motors, along

motor

with

Fund, adds
"There

State

dated

been

should

C.I.T. Financial

Quaker

re¬

shares.

by tangible signs
that the downturn in
business has

tion

Associates Investment

United

be

commons.

Kellogg

5,400

to

dividend."

3,000
3,000

2,000

24,800

likely

revival

not be able to

500

General Electric
Litton Industries

about

proper

34,600

11,900
5,375
16,000

Beckman Instruments

brought

1

12,520
1,500
2,000

re¬

Popovic, President

a

Food Products
2

more

evident

2

Instruments

Westinghouse Electric

appears

sharp

a

warning:

9,000

9.000

Ampex
Consolidated Electrodynamics

Sperry Rand
Sprague Electric

that

us

the Blue Ridge Mutual
the general

10,000

Finance 'Companies

3(1)
6(3)

are

that

12,000
3,590

—

1(1)
1

1958

versed.

;

Warner-Lambert

Texas

to

in earnings is
imminent,
dividends during the rest of

and

2

Electrical Equipment & Electronics

3(2)

Indications point to

Upturn in business, it

doubtful

Milan D.

Laboratories

Allied

au

duced than increased."

Drug Products

2(1)

While prgsont

covery

2(1)

and

Street,

22,000

18}3QQ

Pittsburgh Plate Glass

Bullen

None

38,300

Lily-Tulip

200

Cal.—David

3(1)

_

Works

.'.'SAN FRANCISCO,

8,500

_____

5(1)

Funds Still Cautious

Firjt California

(Special to The Financial Chronicle)

123 So. Broad St., Phila. 9,

NAME.
ADDRESS.

ADDRESS

CITY
ZONE

Pa.

Klngsley 5-3311

'STATE-

.STATE.
•

••••••

••••

/

The Commercial and Financial Chronicle

.

.

Thursday, August 7, 1958

.

m mil

(Special to The Financial

—

Gdodrick has joined
Walston

from page 23

CunoNtcxa)

Duane T.
the staff of
& Co., Inc., 3655 10th St.

RIVERSIDE,. Calif.

—Bought—

Continued,

With Wabton Co.

Joins Witherspoon
(Special to The Financial

No. of

Shares

Shares

Chronicle)

hand, M. I. T. selling 30,800 shares
Calif. — and 4 other sellers.
John
F.
French
is now with
Witherspoon & Company, Inc., 138 Airlines Bought
East Figueroa Street.
American Airlines was the most
SANTA BARBARA,

popular in this group, with 92,500
shares bought by 6 managements,
including
new
acquisitions
by
Fidelity
(28,000). and Pennroad
(25,000). Also favored was United
Lines, bought by Pennroad,

Air

Dreyfus, Value Line, and Wall
Street Investing; while the United
Fund

Group

shares.

20,000

sold

2(1)

managements other than through
an
exchange
of
International
Petroleum. These buyers included
Investors Mutual, Pennroad, and
United Fund. Loomis-Sayles was
the

largest seller

(9,630), with de

Latest
to

Stockholders available

Carl M.

Rhoades
Member#

ket rise,

42 Wall Street, New

attracted 3 fund manage¬
quarter, namely

during the current quarter. Fire¬
man's Fund was bought by In¬

York

corporated Investors (36,000 new¬

and

Line,

Value

ly),

Eaton

&

2,700 shares of this
sold by Loomis-Sayles.

Howard Stock;

issue

were

For Income

the

-

INVESTORS PLANNING CORP.

Shell
\

ers

&
oil

likewise

I

to

T.

favored

$Hm»
17, N. Y.

42nd

Hew York

oils

international

switched

«f Anuria#
Cast

Trust

Interest Comes

escaped

other

The

issue

an

Ingersoll-Rand

5(1)

18,600

United Shoe Machinery.

next

was

highly

Texas

Co.,

None

Babcock &

Combustion Engineering

through the

Sea¬

board

Oil

merger

included

4(1)

f 4,700

3(1)

7,100

4(4)

29,000

2

10,300

2(1)

10,500

•

Reynolds Metals

Aluminium Ltd.

Anaconda

2

'

14,000

1

"

Cerro de Pasco

3(2)

24,400

General Cable

2(1)
3(2)

3,300
11,200
10,000

Magma Copper—
Phelps Dodge
Kennecott Copper

-

3(2)

-

-

Metals

2(2)

9,000
8,000

2(1)

30,000

2(1)

'

Pacific),

2

3,000

3

42,200

2

2,800

3,080
500

3

1(1)

9,600
1,500

1(1)
V

2(1)

attracted
cluded
the

only buyers,

Fidelity

3

Line

Air

Fundamental

in

with

close-out,
eliminated

by
Stock Fund.

Retailers
Allied

which in¬
and

a

was

7(4)

17,500

2(1)

20,100
7,550
6,500
<13,000
12,200

1

group.

sold

52,000

-

3

by

3

share

6,000 also being
Scudder Common

Bought

Stores

4

17,700

2(2)

'.(■ 8,800

3(1)
1(1)

2(1)

-23,000
-11,400
(24,525
4,000

1

r

4(1)

V

attracted

2(2)

man¬

agements, with 2 sellers that in¬
cluded Lehman Corp.
Grand
was newly acquired by In¬

~

2

\

700

.27,600

■.

5(1)

&

&

3(2)
t

1

1(1)

20,000

None

None

...

1,000

!'l(f)

42,000

1(1)
3(2)
4(3)

...

__

20,000

....

21,300

Mining—Gold

i

.

1

-

,',-J None
'

Mining—Other

Foote Mineral—
New Jersey Zinc—
St. Joseph Lead
Vanadium .

1,020
50,000
9,500
4,400

..

..

.

..

_

.

.

;

12

5,200

11,600
3,500

;

None
None

j

American Metal-Climax
American Smelting & Refining.

.

'

None
None

v.

Algom Uranium

*

•

None
None
\ None

None
None

^

Falconbridge Nickel...
International Nickel

2,000

>

2

more,

Securities

National

Seaboard

once

(8,000

3(1)

^

de

17,000

'

Kerr-Addison Gold Mines

-

21,000
36,000

5(3)

*

Dome Mines.^____i._|
Homestake Mining

'

Metals

4(1)

-1(1)

^

Metals & Mining—Nickel

includ¬

and

..

16,000

500

6,000

.....
.....

4 1(1)
1(1)
1(1)
.1(1)

2(1)

Natural Gas

-v ■.

American Natural Gasl.
< None
Colorado Interstate Gas..^
18,000
El Paso Natural Gas
L_ .47,500
Mississippi River Fuel...
l 2,300
Northern Natural Gas
14,600
Republic Natural Gas
11,100
Southern Natural Gas
.....u.
' None
Tennessee Gas Transmission.... ! 2,000
Texas Eastern Transmission L10,500
Texas Gas Transmission
l_ • None

v

United Gas

1(d)
NOne
' 1(1)

1 :
( 5(4)

3(1)
' 2(2)

i 5(2)

25,600

i_
•',

,

'•

,"

None

1(1)
2(1)
I I
2(1)
1
N6ne
(1 ;

Transcontinental Gas Pipe Line
6,000
Western Natural Gas
( 5,000
Arkansas-Louisiana Gas
A70,100
Consolidated Natural Gas..---—7 78,500
Lone Star Gas
1.._—...
-7,400

■

.

'■

>

*

3

In¬

12,300

2(1)
2

*

5,700
2,020

r

_

None

None

4,892

3(1)

21,600
5,000
'None

Burroughs
National Cash Register
Pitney-Bowes

2
1
None

Addressograph-Multigraph

2,024

2

IBM..

6,132

6(1)

INCREASE
Your Sales of MUTUAL FUNDS

MANAGEMENT

48

times

Forceful ads, letters, complete

.

.

year.

sales meet*

.

f

•

i

PRESENTATION
salesmen

acclaimed

Zd^fiedZmrsMpof bonds; Prftrjrt,and

Fund aims to provide possible

common

long-term- growth through

and

5 hours

ords.

stocks selected for reasonable income
possible growth of principal.

.

Overwhelmingly accepted and
fully recorded course on
FUND SHARES.
.

.

.

.

,

of powerful

Saves
trains

you

men

as

training

industry.

free copy of this inform¬

booklet-prospectus, mail

the eoupon below.

holds

a

local

pr<'*/n i
ir.i

>

iu*r>

alK.'it'

sfmerit dealer

home

FINANCIAL PLANNING

services with

Devoted to

new con--

cepts in the employment of money
tax-savings, estate creation, Income,

for

eft."

able Financial-,
Planner.
Advanced
thinking
and
ap¬
proaches for salesmen. Issued monthly.
makes

Reading

it

MUTUAL

FUND GENERAL

you

an

<

2

LITERATURE

Designed to make your mu¬
tual fund selling program more effective,
more
profitable. Compelling adverselling
about Mutoal Funds is
it.

Here

planned

are

no

rare.

But MSS does

well

mutual

thought and" carefully
fund folders that sell.

have these

out-of-pocket cost.

these mutual funds fron

or:

v/am.

North American Securities

Hn<-- Buddinc




You asked for it

hard

proven
your

"au¬

an

prospects' attention,
drives
Makes closing sales easy.

Ask for details and how you can

LTD.

STATE

RCA rec*

hitting,, practical digest full
of SELL for your salesmen^
Here is the
best of MSS, condensed and easy to read.
Fresh new approaches, techniques others
have used to sell, to overcome obiections,
to close and to find prospects.
Monthly.
...

jamtBBs

on

valuable executive time
they should be trained.

MUTUAL FUND SELLETTER

diversified investment in the

FREE

the MSS visual with

close'1-, guarantees
an
effective
presentation every time. Compelling . . .

tomatic

needs.

HOW TO SELt MUTUAL

The" Institutional Insurance

85 Broad St., New York 4, N. Y.

...

A boon to all mutual fund

MUTUAL FUND SALES TRAINING
RECORDS

a

(

MUTUAL FUND VISUAL
a

Inqs, telephone techniques, tax approaches,
hiring, training,
prospecting and more
in MSS
Modern Securities Services.

oJiOutb~«

Sari

Companj
/•

'•anei sec

■

Office Equipment

SALES

in,

m

10,000

Mining—Copper

2(1)

Railway

Southern

sold

Southern

&

ADVIITISIN6, SALES TRAINING,

possible
long-term growth

HARE'S

_

...

.9,000

■

ative

A3(1:)

...

Bridgeport Brass

Putnam

INSURANCE FUND

a

14,600

MhMM'

which aims at

insurance

(6(3)

-3(2j

Kaiser Aluminum

-

3,000

(12,000 newly) and
M. I. T. (10,000). Southern Rail¬
way
was
picked up by 7 com¬
panies,
including Scudder and
Overseas
newly,
and
also
by
Fidelity,
Putnam
and
others.
ing

INSTUOTWNAL

For

33,460

23,100

U. S. Foil "B"

-

17,360

im¬

by

bought by 8 managements,

describes

;

~

I.

...

1(1)

To

-•

1

4(3)

..—.I.

Aluminum Co. of America

(7(1)

free

booklet

Wilcox

Ex-Cell-O

"international"; buy¬ Union

than

1,842

None

8,000

None
2 >

10,500

....

...

;;

1

20,000

-

___

Allis-Chalmers

None

V

__1

None

None

corporated Investors (12,700) and
Commonwealth, with one seller.
vestors Mutual
(20,100) and the There was likewise some buying
Chemical Fund (8,700). Standard without selling in Jewel Tea, J. C.
Continued on page 25
Oil
of
New
Jersey attracted 8

NATIONAL OtSTMOUTOn

Wortbington

5,230
None

Into the Rails

stimulated

Seemingly

issue

"sister"

the
T.

20,000

Metals

proved legislative as well as busi¬
ness prospects, interest lifted the
carriers from their previous dol¬
drums.
Southern
Pacific
was

(which

during the
past pre-Mideast crisis quarter. In
fact, as in the previous period,
Royal Dutch was a buying stand¬
out, with 13 buyers, including
M. I. T. (86,200), Wellington (39,950),, and Investors Mutual (28,950); with only 3 sellers, of whom
the
largest was de Vegh who

from

40

was

T.

I.

M.

and

substantial liquidation

Prospectus and Literature

3(1)

Vegh; while abandoned by Value
Line Income. Chesapeake & Ohio

Domestic
The

Chicago Pneumatic Tool..
Dresser Industries

_

Oils—International and

.

stake,

national

wealth Investment.

TRUST

2

24,000

-

Metals & Mining—Aluminum

huge
multi-line
company, was bought by
Incor¬
porated Investors (26,000 newly) Great Northern was bought by 5
and Pennroad; with no sellers. In
managements,again with Fidel¬
the life category, Aetna was also
ity the largest. Baltimore & Ohio
bought by Incorporated Investors was
acquired by 4 companies, in¬
(15,300
newly)
and
Common¬ cluding Fidelity again, Dreyfus

Travelers,

30,000
3,000

33,000

.

2(1)

Other oil issues

Wellington (7,137), Affiliated, and
de Vegh.
It is understood that
additional acquisitions were made

Jlfeu/ York Stock-Exchange

1

3

2

particularly heavy inter¬

with the

ments during the

Co.

&

1

3,500

Caterpillar Tractor

M. I. T. (39,000) and Investors
Mutual
(10,100). Gulf, the issue

enjoying an enormous mar¬

been

Loeb,

1

800

Decker Manufacturing

12,000

None

of Boston.
enjoying popular¬
Maryland Casualty was the best ity were Standard of California,
bought -issue in this group, the Louisiana Land, and Atlantic Re¬
purchasers
including
Investors fining.
Mutual
(18,450), Eaton & How¬
Selling predominated in Phillips
ard
Stock,
Massachusetts
Life
Petroleum, Socony Mobil (the lat¬
Fund, United Funds; with no sell¬
ter by Tri, Loomis, and Selected)
ers.
Government Employees In¬
and in Richfield evidently by way
surance,
the Graham - Newman
of profit-taking.
sponsored organization which has

Qjiarterly Report

3,000

ly)

Shareholders'

Insurance Issues Popular

None'

4(1)
1

None

_

American Machine & Foundry..
Black &

300

3(1)

closing out its commitment
of 6,000 shares. Other well-bought
oils were Standard of Indiana and
Gulf.
On the buying side of the
former were Fidelity (49,500 new¬
Vegh

bought by
(20,000), Putnam, the
Value Line group (35,000 newly),
United Funds Group, Affiliated
Selected American (16,200), and
Fund, and Texas Fund. Sellers in¬
de Vegh (11,000 newly).
cluded
Axe
"B," Dreyfus, and
by the

Pan American was bought

11,300

1
•

American Chain & Cable.

2,240

No. of
Trusts

Machine Tools & Industrial Equipment

Machinery,
2

Rising Maiket

Sold——,

.

No. of

Trusts

Funds Still Cautious
Midst

■

No; of

KAIB, VOORHIS « CD

.

1037 WOODWARD BLDG. WASHINGTON 5, D.C.

i

Members, New York Stock Exchange, American Stock

Exchange (Assoc.)

Volume

188

Number

5766

,

The Commercial and Financial Chronicle

.

.

—Bought—
No. of

Trusts

Shares

No. of

Continued from page 24

No. of

Shares

_

.

1

1,000

-

500

3

57,000

2

4(2)

1

7,400

1

1,000

_

Cities Service
Continental Oil

j

15,500

1(1)

23,000

3(1)
2(1)

1(1)

10,000

Getty Oil

9,500/

7

35,200
20,000

Gulf Oil
Honolulu Oil

4,050

2

3(1)
4;

3,500
16,800

2(1)

6,000

3(2):

V

1Q,500'

;/

10,600

3\

'

39,500

1

'

7(1)
8(1)
1'

4,500

3

17,300

2(1);
10(1)
2-

1,000

2(2)'

34.100

3(2)-

7,000

None

None

3

None

1

4,000

1(1) •/

30,100

'

>

-

None

3

Shamrock Oil & Gas

None

None

7,000

2(1)

Oil

7,000
32,000

Oil

2,550

1,500

(Indiana)

2,000
17,193

(Ohio)
Sunrav Mid-Continent Oil

1,000
J

500

31,661

'

_i__

None

Amerada Petroleum

4,500
Hudson's Bay Oil & Gas
8,734
International Petroleum
f48,000
Phillips Petroleum
57,300
Richfield Oil..-—14,000
Shelly Oil
___-______r_v
4,000
Socony Mobil Oil
36,500
Union Oil of California______
7,100

35,500

4(1)
2(1)"

50,500
7,000

1(1)

2,200

4(2)

29,600

T V'•'

3(1)

.

3.500 "

81,400
6,100

2
2

16,000

2

1,600
33,000

X

.f..'.

'

2(2)

bacco

issues

bought.

1(1)

the

4(1)

-None

None

None

None

\

6(2)

3(1)

25,900
' '•
':

Atlantic City Electric..

None

None

3(1):

20,100

Baltimore Gas & Electric___

None

None

Brooklyn Union Gas

5,000

1

7,750

.1

1

v

3

y

5(4);

'2(1)

Carolina Power & Light

16,100.
1.C00

Central Illinois Public Service..
Cincinnati Gas &

22,000

Electric._____

66,100 ;

3(2)

Commonwealth Edison

14,500

1(1).

None;

3(1);

28,184

Consolidated Edison (N. Y.)____;

None

13,500

Dayton Power & Light

None

.

2(1);

16.000

Detroit Edison

3(1).

22.000

Gulf Interstate

2

;

1

2,000

Idaho

4.000

6(1)

1

Columbus & Southern Ohio Elec,
Community Public Service.

___'.

Power

,r

14,000

Interstate Power

52.310

None

20,000

Long Island Lighting

None
None
None

5,000

__

Gas

!

popularity moderately. Most

popu¬

offered

sellers.

Gas

&

rights,

Electric,
and

Other

were

issues

on

the

System, which also had a
rights offering and was picked up1
by 6 managements, including the
Bullock Group with 50,000 as a
new
acquisition. Again with the
help of rights, Long Island Light¬
ing attracted 6 managements, in¬
cluding Diversified with a new
acquisition of 25,0Q0 shares, and
ho
selling;
Southern • California

frw «/ Pennsylvania' Personal'Property

coal

stocks,
by
the

MUTUAL FUND' fit*
Vesting in a' diversified
group

United

;

of securities selected

for possible' long term

growth of capital and
income.

y
Send for FREE Prosp«c*aa

'

due-largely

'fal

A

from your

Dealer

GEORGE
>- 4

Investment

5

A.

or

BAILEY'

TITLE

LAND

8LDG.,

to*

-;■

*

PHIL A.

CO
10.

Fa

Funds

group, which increased or newly
acquired holdings in Island Creek
and

Peabody. In these two issues
Vegh, and

there

with

were

no

GROUPS MEETING MIXED
REACTION

Divergent Attitudes Toward
Aluminums
U.

S.

bought

Foil

by

"B"

four

10,000, but that stock also
liquidation from 3 manage¬

ments, with Wellington, Delaware
and Institutional Foundation Fund

was

newly

managements,

with the largest transaction being

owj

Prospectus from

Wellington's new
purchase
of
25,500; with the only close-out
being by Dreyfus (16,000). Alcoa

your investment dealer
or

PHILADELPHIA 3, PA.

bought by four managements
and sold by two. Reynolds Metals

was

bought, with sellers predomi¬
nating in Aluminium Ltd. and'

was

>-

Kaiser.

y*

.v.

Edison's 4 buyers included M. I. T.

Policies Toward

>

-

Building

Stocks Divided

Continuing the apparent skep¬
ticism

concerning

its

"growth"

balance characteristics, National Lead was
sold by five funds, including a
included Florida Power & Light'
(by: Dreyfus, Investors Mutual, complete sell-out of 98,800 shares
by
Incorporated
Investors
and
Axe;
Energy
Fund,
Eaton
&
sales' of 23,800 shares' by'the'TriHoward Stock, and' Investment' Co.
Group; whereas Pennroad made
of
America),
with
no
buyers;
an
initial
commitment
of .5,000
Duquesne Light
(sold by two,
shares.
American
Radiator en¬
bought by none); Columbia Gas
countered only selling, by Adamswith a particularly large sale of
Utility

issues

sold

None

Fund-American

shares

by

the

Affiliated

Business

26

Shares

Group; and Middle South Utilities,
five

sellers

1
None

Get

on

the

farts

about

Investment Trust
of

Boston

,

70,800

page

in

New England Elec¬

two

overbalanced

toward
current

the

utilities

policies

during

the

Trust

Securities Corporation,
National Underwriter, 80 Federal' Street

Selling also outweighed buying in
General Portland
Cement, Lone
Star

Boston,

Cement,, and: National Gyp¬

group

Some

active

bought

by Fidelity, Dreyfus

Continued

quarter of inflation-spec¬

Please

on

page

and

26

send,

prospectus

buying in this

took place in Otis Elevator,

mutual. Investment company
founded 1931

a

AIC and National Securities Stock.

sum.

buyers.

The fund managements'

Continued

INVESTORS

attracting,

Interest revived considerably in

was

tric

where
.

Pacific

was

1(1)

1(1)

None

SOVEREIGN

'

1^,300
3,400

of $30

or mora.

Series,
Putnam, Axe, and Bullock, while
being bought by Selected1 Ameri¬
can, Dreyfus, and United Conti¬

by de
their

making complete eliminations.

19,200.

3,

.

t

2(1)

3,800

amounts

sellers.
utilities

maintained

met

900

1

The

no

St. Regis Paper

.

Affiliated

by

bought by 7 managements, includ¬
ing Delaware and M. I. T., with

Scott Paper

1

notably

Utilities Still Favored

limelight

2

accumulated tm

the United Fund
Group was joined

60,000

3(1),

National

Lorillard,

2(1):

5.000

(including

Fund to the tune of 31,600 shares.

1(1)

Arizona Public Service.2,000 '

was

2(2)

2(1)

T/rS

Tobacco

continued.

American

buying

2,900

Utilities—Electric & Gas, Etc.

-

to¬
well-

ly) outnumbering 1 seller in Philip
Morris.
Profit-taking came into

Great Northern Paper_________J

West Virginia Pulp & Paper.

the

4(1)

1

Public

industry,

the

1

be
systematically

Cerro
de
Pasco
and
General
Cable. Kennecott was sold
by Na¬
tional
Securities
Stock

Securities Stock with 40,000 new¬

1

12,200

persistent

purchasers

None

...

the

the

None

1,000

Kimberly-Clark

of

5

.6,100

Share* may

predominance of buyers included

1(1)

1(1)

ing.,

19,200

10,200 '
9,817

will be tvatched

liked, with 4 manage¬
purchasing and none sell¬
nental.
An equal number of fund
managements bought Reynolds; 2
Revival in Coal
bought Liggett & Myers; with 3
ments

None

.

,

a

best

4(2)

2(1)
5(2).
4(1)

15,600

face

2

Federal Paper Board
Fibreboard Paper Products

.

24,000

1(1)

the

1(1)

lar

Union Bag-Camp Paper_„____l
International Paper

500
;

In

which

Champion Paper & Fibre__,
Container Corp. of America
Crown Zellerbach
;___J

Pacific

and

great investor interest.

and others. Other issues

Continued

on

Paper and Paper Products

4(1)

York

New

.

attacks

5(1)

—

•

3(2)

2(2)
■

'

•

1

10
j;

Texas Company
Tidewater Oil

*

Irving

Coast Stock Exchanges.

(60,000),
the Coppers Favored
(5,600), and Over¬
Midst the rally in the price of
seas (2,000); while Value Line In¬
the
red
metal,
Anaconda
was
come
Fund closed out its 20,000
strongly favored, with seven man¬
shares.
Selling exceeded buying
agements buying and only one
in Gimbel, W. T. Grant, Sears, and
selling,
the
former * including
Woolworth. r
Dreyfus (5,000 newly), Adams'and
i
'
[
American International, Selected,
Tobaccos'

-

1

the

of

of

Fund

Popularity

Shell

Superior Oil (Calif.)

4,000

.

None

2,000

Petroleum

Standard Oil (New Jersey)

'

None

Dutch

Standard Oil

None

i(l)'

_:

i

Standard Oil

,

5,200

None

;___

___r

Oil

Royalty.
Standard Oil of California

4,200

3(1)

2(1)

Southland
'

42,844 y

•

17,200

Sinclair

J150

■

Louisiana Land & Exploration..

Signal Oil & Gas "A"

.

2,754
51,500
113,102
41.892

6><1):

1(1)

Royal

8,300

2

500

Pure

cumulative

with

staff

Bullock group

None

:

Ohio Oil

188,800-

2

Oil

Mission Corp

59,400
12,500

'3(1)
13(2)2

Kerr-McGee

1(1)
3(1)

None

;

Penney and Bond Stores. Spiegel,
with sharply increasing
earnings,
was bought newly by United Ac¬

t<y

kidded

been

has

Lundbdfg 8t
Co., 310 Sansome Street, jriemfeefe

Rising Maiket
tre restimulation

FRANCISCO, CaL^Curfis

Richmond

R.

the

None

6,000

SAN

Funds Still Cautious

1

None

British Petroleum

£,400
3,600

2

1.000

Arkansas Fuel Oil_

Atlantic Refining
British American Oil_ _:

#,400 '
6,000

1

Anderson-Prichard Oil

ctmo^ruxei

(Special to THE Financial

Trusts

Oil

I

Lundborg Adds to Staff

"

1

%

V

Sold-

.

No. of

25

(521>

Trust of
>

me

Mass.

Without

obligation, »
the Investment

describing

Boston.

name

0

..

address

city-state

Shareholders' Trust
.

The Qeorge

of Boston

PUTNAM FUND
of "Boston

m

A MUTUAL FUND INVESTING IN
.

VA BALANCED FUND"

SECURITIES OF THE SOUTHWEST
Prospectus

THE
%

PUTNAM

may

be obtained from

local investment dealer

your

or

GROWTH
TEXAS FUND MANAGEMENT

FUND

Emphasizing possible long-term Capital Growth
Prospectuses on Request

60 CONGRESS

123 Texas National Bank Bldg., Houston, Texas

New York

Chicago




Telephone: CApitol 7-0211

STREET, BOSTON

Los Angeles

Washington

Orlando

balanced mutual fund for

cur¬

rent

income

term

growth of income and capi¬

and

possible' long-

tal.

COMPANY
Principal Underivriter

Putnam Fund Distributors, Inc.

A

Bell Teletype: HO 566

Prospectus

on

request

Chase Distributors

Corporation:
75 Federal

Street, Boston 10, Mass*

26

(522)

The Commercial and Financial Chronicle

With Kidder, Peabody

Continued

jrom

page

CHICAGO, 111.—Richard B. Day
now
with Kidder, Peabody &
Co., 33 South Clark Street. He was
formerly
with
Cruttenden, Podesta & Co.

Shearson, Hammill Co.

No. of

Shares

3

Midst Rising Market
others, with only
Istel

Fund;
bought
by

ing, by

seller, the

one

Chemical

and

Fund

two

and

Investors

with 14,800 shares, fol¬
lowed by Wellington's 13,000
shares. OthfcH.chemical issues with
more
sellers
than buyers were
Atlas
Powder, Diamond Alkali,

l*T0H t
tu„invCs.
er°H

klnen """t

'th

Investors

and

The

(7,300);
Potash, by
Chemical
Fund; Columbian Carbon; East¬
man Kodak, by Scudder Common

stocHs,m^cn
your
CATON

Investment Dealer

Stock

A

the United Funds
Delaware,
and
others;
Hooker, by the Tri Group (57,000),
Lehman, Axe "B," and Wellington;

HOWARD, Incorporated

24 Federal St., Boston, Mass.

Fund,

International

Minerals

&

Chemi¬

American
du

Pont

Cyanamid, Dow and
resulted in approximate

stand-offs

as

to

the

number

Life Fund

of

In

ual trust account

dfttOuianco

for each investor.

r&ont/ta*t*f, Jrujttt

Prospectus from

Eli

9,

6,000
5,300

A None
None

27.000

None

None

None

None

eral

Electric

The

former

were

Gen¬

and

over

the years.

Investing in

a

5,000

None
None
4,300

;

Wisconsin Public Service
American Electric Power §
California Electric Power.-

5,000
3,543
10,100

1(1)
3(2)
2(1)

Central & South West

20,500

3

Columbia Gas System
Delaware Power & Light
Duquesne Light
Florida Power & Light
General Public Utilities

78,000
30,900
6,500
25,700
24,700

4(1)
2(1)

38,000

Public Service Electric & Gas..

10,341
54,675

30,397
8,800

3(2)

35,800

4(1)

—

—-

; Middle South Utilities
Ohio Edison

-

Peoples Gas, Light & Coke

2(1)

4,000'

South Carolina Electric & Gas..

1

1,400

Southern Co.

32,500

Texus Utilities

——

8,000
4,370
28,694
21,400
6,200

8,650

West Perm Electric—.

4,000

None

None
2,000

1

Western Union

11,200

1

General Telephone

27,700

4(1)

California Water & Tel

1,200

3

Telegraph

&

American Tel. & Tel...———

106,705

1(1)

15,000

3(1)

3,500

4(1)

21,300

American Broadcast-Paramount

7,900

1

2

4,000

Columbia Broadcasting "A"—

12,700

2

2

3,300

Columbia Broadcasting "B"___.

2,517

2(1)

2(2)

4,300

Disney (Walt) Productions.•

None

None

4,475

.

56

Magnavox

1

27,100

National Theatres

3(2)

24,100

Twentieth

2

800

1

2

5,700

1(1)

50,000

Century-Fox

Zenith Radio

1,500

2(1)

28,900

3(2)

—

Paramount Pictures

,—

——

.

3(1)

12,800

Railroads

.

,

.

.

3(1)

14,000

Atchison, Topeka & Santa Fe._

10,300

3(2)

4(4)

67,500

Baltimore & Ohio

15,900

1

4(1)

36,800

Chesapeake & Ohio

None

None

2(1)

12,500

Chicago, Rock Island & Pacific—

None

None

15,700

....

2(1)

29,500

Denver & Rio Grande Western—

5(2)

28,700

Great Northern

4(2)

8,000

1

6,000

Kansas City Southern——-

4,000

2(1)

4,000

Louisville & Nashville

15,800

3(2)

9,200

I

8(5)

34,000

Southern Pacific—

*

7(2)

44,000

Southern

•

3

7,500
None

3,100

...

N. Y., Chicago & St. Louis

\

None

2(1)

....

2,400

1

None

None

600

Norfolk & Western

Union

Railway

2,300

-

Pacific

2
.

6,000

——

Pacific

Northern

—

2

3

3,000

1

3,000

2

60,000

Seaboard Air Line

2(1)

•

stocks.

1

■!'

•

ill

•

LONG-TERM GROWTH?

•

£

balanced list of bonds, pre*
common

Tucson Gas, Elec. Light & Pwr.

Houston Lighting & Power...—

300

:

■

ferjred stocks and

3(3)
1
;
1
;
None
None
1 > ;

Public Service of Colorado...—

6,500
10,000

1

Diversified Investment Fund, Inc.

□

None

72,800
3,000

4,487
None

United Utilities
Virginia Electric & Power
Washington Water Power

Gulf States Utilities

13,000

2(1)

2(1)

.

Interested in possible

None

None

None

3,000
None

2

Investing in common stocks selected for
possible growth of capital and income

□

1,100

1
1
None
2(1)
None
1
;
None
2
;
1

was

Fundamental Investors, Inc.

Mam.

3(2)
,

2
6(1)
3
2
2(1)
5(2)
3
2
2(1)
3(1)
3

1

3(2)

_

None

19,000
22,700
20,500

Radio, Television and Motion Pictures

or

DISTRIBUTORS
Stat* Stuibt, Boston

4,500

1

ABOUT THESE MUTUAL FUNDS

MASSACHUSETTS LIFE FUND

50

2,200

6,900
24,000

15(3)

State

greatest disfavor

Southwestern Public Service

Public Utilities—Telephone

others;

by

Southern California Edison.....

2,000

1

your

Investment Dealer

15,000

3(1)

HOW TO GET INVESTMENT FACTS

Founded 1818

4(1)

2(1)

issues sold
on
balance
Lilly, by Chemical Fund
ica (22,000) and Dreyfus, and re¬
and United Science; Mead John¬
duced
by Scudder and others.
son,
by
United
Accumulative
Electricals
purchased
included
(27,000)
and
Scudder
Common
Cutler-Hammer, by United AcStock Fund, with I Lehman Corp.
Continued on page 28
being a 5,000-share buyer; Scherwere

San Diego Gas & Electric...

None

Trusts

None

3,500
None
27,300

.

Rochester Gas & Electric..

Sierra Pacific Power

1

American

Pacific Lighting
Philadelphia Electric

2,300

None

No. of

_

9,286

None

this

Oklahoma Gas & Electric
Pacific Gas & Electric

1(1)

1

in

Electric System._

2(2)

2

Street

Drug

providing

15,000

2(1)

Westinghouse.
sold
by State
(21,400)
and
Wellington
(50,000); and the latter was liqui¬
dated by Investment Co. of Amer¬

Drugs Mixed

for distribution of income and prin¬
cipal in accordance with an individ¬

2,000
4,000

2

None

Electricals Divided

buyers and sellers.

A balanced mutual fund

2

None

stock

were

9,100

10,800
24,596

2(1)

Continental Can,
Street,
General
American Investors, Mutual In¬
vestment, and others; and Pitts¬
burgh Plate Glass, sold by Chemi¬
cal Fund, the Eaton & Howard
group, and Dreyfus, the latter in
a complete sell-out.
among

sold

cals, by Value Line Income Fund,
and the Atomic Development Mu¬
tual; Tennessee Corp., by Pennroad
(12,800 newly).
Transactions in

Massachusetts

disfavor

3

Can, sold by Affiliated, the Eaton
& Howard group, Niagara Share,

group,

or

In

bloc.

Niagara Mohawk Power._—:—
Northern Indiana Public Service

2

seller, Chemical Fund being the
largest buyer, with a 13.200-share

Mutual

7,500

None

group was Owens-Illinois Glass,
with five buyers
and only one

American

Prospectuses available from

liked

best

4(1)

2

Containers and Glass

Machinery, Koppers, Rohm
& Haas, and Union Carbide. Issyes
bought in this group include Al¬
lied
Chemical, by Fundamental
(37,000 newly), Wellington (8,400),

New York State Elec. & Gas...

1

20,000 shares initially acquired.

Food

New England

11,200

2(1)
2(1)

the
United
Funds group, and Investment Co.
of America; and especially in Ab¬
bott Laboratories, which was pur¬
chased by five managements,
including
Chemical
Fund
with

buyer,

70,642

2

No. of
Shares

Louisville Gas & Electric..

2(1)

1

Mutual,

•

6(3)

1(1)'

^!e'sV

santo, with the liquidators notably
represented by the two Scudder
funds (34,855); oil the other hand,
Chemical Fund
was
the largest

7,000

7(2)

Carrier Corp.,
Fidelity
Fund
and
Of Yale & Towne, Funda¬

others; and Warner-Lambert, by
Branch in San Francisco
Pioneer, Knickerbocker, and Axe
SAN FRANCISCO, Cal.—Shear- others.
"A."
Most popular issue in this
mental Investors sold all its 100,- group
was
Parke
Davis
with
son, Hammill & Co. has opened a
branch in the Russ Building under
000 shares. 'jjy'f??F :.;;V
eight buyers and four sellers, the
the* management
latter including Affiliated
Fund
of Thomas
H.
Some Lightening in
with a disposal of 17,600 shares.
Hodgkinson.
j
Merck
continued
to
find
good
Chemicals
buying, interspersed with profitMidst their long-term populari¬
taking on the part of Selected
ty,
the
chemicals
encountered American Shares, Wellington,
some selling during the past quar¬
Knickerbocker, Chemical Fund
ter.
Olin Mathieson was sold by and Blue
Ridge.
New commit¬
Tri in the amount of 7,500 shares ments in this issue were made
by
as
a
closeout, and by Delaware, General American Investors and
while
bought by none.
Sellers United Science. There was also
A «\u\2?«h
outweighed buyers also in Mon¬ fairly good buying in Pfizer, by

<0V^ncs ol deterred

Thursday, August 7, 1958

.

Sold

No. of

Trusts

Funds Still Cautious

'

.

.

—Bought—

25

(Special to The Financial Chronicle)

is

.

J
•

...look into

Manhattan Bond Fund, Inc.

□

ABERDEEN

-

-

t
i

•

FUND

Diversified Growth Stock Fund, Inc.

□

Prospectus from
mail coupon

your

!

including such industries

•

as:

electronics,

today to:

-

Dept. CFC-G1

■

|

|

Street, New York

Please send Aberdeen Fund Prospectus.
Name

securities
for

and

their

selected
income

on

these mutual funds

51

'as

appreciation •
.

ment firms—or

checkmark your

Prospectus

on

preference above and mail
this ad to:

fe

involved.
Request

Nationally distributed through investment dealers by
City and State
27

Delaware Distributors. Inc
300

Broadway, Camden 3, N. J.,

3, New Jersey
Hello

.j

w

WE

ii

HUGH W. LONG AND CO., INC.» Elizabeth




commensurate

w'th the
risk

Address

......*

State

Possible,

Pro.p«h« «"

Namt

■

Street..........
^

Investing foras high
current income.

available from local invest¬

MANAGEMENT CORP. I
15 William

1

Prospectuses and other infor¬
mation

■

•

I investing in diversified,

possibilities..

dealer

-DAVID L. BABSON

♦

Investing in common stocks selected for
possible long-term capital growth—now
chemicals and atomic energy.

or

^Amne

♦

Investing in bonds selected for income.

jrom Charlie Duciichmu

Volume

188

Number 5766

;

.

.

The Commercial and Financial Chronicle

(523)

—Bought —

Sold

No. of

No. of;

Trusts

Shares

v

-

.

Shares
Railroad Equipment

2.000

2(1)

rJ.

Industries

ACF

100

.1

No.of

.

gold

No.of

No.of

Trusts

Trusts

Shares

•'

111

54,000

5,100

General Railway Signal-.

None

7,800

Westinghouse Air Brake

1,000

J

900

General American Transportat'n
■

4(1)

2(1)
None

'1

4,900

12,100

2

1

500

Retail Trade

No.of

No.of

Shares

Trusts

None

None

None

None

Tobacco

American Brake Shoe_.

v—

—Bought—

■

No. of

f

2

'2(1)

—

2(1)

American

11,900

•

27

3(1)
4(2)

45,000
19,800

2(2)

6,200

Tobacco

Liggett & Myers._^_______

-

Philip Morris

4 800

1

Reynolds Tobacco "B"

8^000

2

Lorillard

.1,;,, '1■:..*■«•

(P.)

34,600

_

INCOME and
GROWTH?

3(1)

Miscellaneous

.

Investing for

*

"First get -the

*4

•2(1)

:

Allied Stores

4,000 ;

Associated Dry

2(1)

700

3(1)

7,200

2

2

Federated

2(1)

20,300

v

2

12,400

12,200

1
2

6.000

'

1,600
10,500
3,500
67,600

2(1)
1

3(3)
1

.v

,

;i

f(D

American Chicle

GoodS;__J_i___L'_^ : 4,50(K 1 2

2(1)

10,500

American Photocopy Equipm't__
Avon Products.—,

1,

Department

-

Stores__ '

.

Bros.

Grant

2,100

Sears, Roebuck

-

___

(F. W.)

1

3(1)

v

1 ;

1

2.
2(1)

2

1(1)

6(2)

None

None

2(1)

1

2,000

1

5,000

1

20,000

1(1)

14,000
3,000

2(1)
2(1)
3(1)
2(1)

,

'

"

rv*>«>

ft".-,

1
400

General Tire &

2,000

Goodrich-(B. F.)„

8,200

Firestone Tire & Rubber

12.990

Goodyear Tire & Rubber
U.

S.

1

101,700

3(1)

14,500
31,580
15,630

3
8(4)
3

Rubber
Steel &

1

3(2)

200

1

4,700
8,100
30,000
5,700
1,300
16,000

4(1)
1(1)

4(2)

2(1) ;

9,600

1

2,000

1

1

Iron

12,700

6

77,000

1

Allegheny Ludlum Steel..
Armco Steel...
£i;

400

7(2)

Carpenter Steel

52,900

2

U.

16,700

1

11,000

Youngstown Sheet & Tube
Bethlehem Steel

Steel

______

1,000
7,800
3,000
1,400
6,500

1

2

5,400

1

103,000

1(1)

Wrigley (Wm.), Jr
Brunswick-Balke-Collender

___

£:

{i about

m-

SELECTED

2(2)
1

5,200

2(1)

10,800

2(1)

2(1)

None

1

500

Newport News Shipbuilding

2,200

3

41,500
9,300

5(2)
3

1

4,000

Stone & Webster

4,400

3(3)

91,600

7(2)

^Formerly Hooker Electrochemical.
fNot exchanged for Standard Oil (N.

3

INVESTMENT FACTS

1(1)
*' 1(1)

2

8,630

SHARES, INC.

Why not Get the

\

9,000

'

1
4(1)

,

Exchange Place, New York 5, JN. Y.

None

7,500
6,000
55,000
15,300

Air Products

KNICKERBOCKER
20

1

None

______

booklet and

1

11,000',;JJV'1(1)

Time.

and

1

13,300

Transamerica

information

free

income

cnrjrernt

1(1)

6.000

Jones & Laughlin Steel

8,500

2(1)

S.

None

Procter & Gamble
Simmons

For

for

Prospectus, write your investment.dealer or

1

None

Hertz

Polaroid

None

None

Glidden

None

91,800

None

long-term growth potential.

Harris-Intertype

Merritt-Chapman & Scott

1,100

selected

1

4(1)

None'

Newmont Mining
Outboard Marine

None

1(1)

600

Minnesota Mining & Mfg

Signode Steel Strapping

7(2)

4

10,000

offering a ^versi¬
fied, managed investment hi stocks

None

800

._

7.(2)

4(2)

27,000

A Mutual Fund

1(1)

None

Harbison-Walker Refractories

FUND

None

2,500

1

...

Republic Steel

2,000

27,900
11,290
1,400
21,500

1(1)

1(1)

Interprovincial Pipe Line..
McGraw-Hill Publishing
McKesson & Robbins

2,000

None

4(2)

4,000

International Shoe

27,000

1(1)

None

Grolier Society
Halliburton Oil Well Cementing
Haloid Xerox

about

KNICKERBOCKER

1

16,000

,

Fansteel Metallurgical
Gillette

1,000

3(3)

40

__

facts

None

600

Colgate-Palmolive
Eastern Industries

5,900

1

2

Rubber

7,700

500

2

4

Rubber and Tires

Carborundum

1

None

—

Buckeye Pipe Line

500

12,000
30,000
1,600
1,300

1'

17,500

_^_

600

11,800
11,200
5,600
7,600
12,600
52,100

3

1,000
4,000
3,400

19,526
3,000

_

4,920

•

None

-

1(1)
-

2

1(1)
1(1)
2(1)

; 1,000

(W. T.)__

Woolworth

2

205

_.

1.000

7,000

None

7,000
6,000
None

Macy (R. H.)—
May Department Stores
Montgomery Ward
Newberry (J. J.)
Penney (J. C.)
Safeway Stores
Simpsons Ltd.
Gimbel

None

,

Jewel Tea—

Spiegel

45.900

1

16,900

Grand Union
-

.3(1)

1(1)

First National Stores

2,800

~

2

2,400

Bond Stores __»1____

4,100
15,700

•2(2)
•

5,000

AMERICAN

SHARES-lnc.
I

•

•

a

mutual investment fund

which

supervises a diversiportfolio of American
securities, selected for the possibility of
long term GROWTH of capital—and

ied

current

**Formerly Pittsburgh Consolidation Coal.
J ).
SFormerly American Gas & Electric.

INCOME.

—for FREE copy of prospectus

mud

other information—fill in

and

name

Textile

address

3(1)

17,500

American

3(1)

27,100

Viscose

58,400

2(1)

2,500

2

6,500

2

13,200

Burlington Industries
Lowenstein
(M.)
Rayonier
Stevens (J. P.)

2(1).

12,900

United Merchants & Mfrs

None

16,500
3,000

...

3,200

15,000

—_

3(2)
None

on

coupon

below and matt to

Selected Investments Co.

1(1)
1(1)
1

135 §, LaSalle

Better Opportunity

1

Information

on

St., Chicago 3, HL

SELECTED AMERICAN:

(Please sendmefree prospectus andother
SHARES.

CF-8-7

for Sales Managers
FOUNDERS
A few

MUTUAL FUND
PAYMENT

INCOME

PLAN

sales

a

A chance of

PLAN

ACCUMULATIVE

for

men

^ Nsm*.
| Addrtss_

JSiatt.

lZ'~

qualified to hire, train and ad¬
minister

SYSTEMATIC

still open

areas

A

a

organization.

lifetime to build

profitable organization of

PLAN

devote

can

work

Prospectus may be obtained from
authorized dealers, or

as

we

all

time

your

a

to

Do the

highly

your oum.

Investment

You

productive

Possibilities in

handle all routine, non-pro¬

ductive paper

ELECTRONICS. r|

work.

Interest You?

You will:

FOUNDERS

MUTUAL

DEPOSITOR

DENVER

TELETYPE

2

BANK

DN

WHY NOT

CORPORATION
—

NATIONAL

FIRST

BUILDING

COLORADO

249

—

—

Receive

top commissions.

Participate in
Take

over

our

INVESTIGATE

profit-sharing plan.

to you.
—

AXE

SECURITIES CORPORATION
AXE-HOUGHTON FUND A, INC.

Receive continuous support

"

V

ELECTRONICS

it,

with tested sales aides and

Be given direct

home-office support in developing your

organization.

-

FUND, INC.

.•

.

••;.••-••

A Mutual
-

Fund whose

assets

are

AXE-HOUGHTON STOCK FUND, INC.

primarily

invested for possi¬

gressive organization now represented in 43 states., two territories and
four foreign countries. Our Managers are among the top earners in
Many have built up high, steady, annual incomes.

ble long-term

Mutual

in

Funds

under polities that have

built

a

growth .of capi¬

the business.

m

Invest¬

ment

pro¬

deal

We

^■ri AXE-HOUGHTON FUND B, INC.

.

supplies needed to operate.
—

H

TELEVISION.

existing sales force in the area assigned

any

This

is

opportunity worth investigating today!

an

Call

or

tal and income in

companies actively
engaged in the£lec-

write

King Merritt, President.

tronics field.

AXE SCIENCE & ELECTRONICS CORPORATION
6et the

KING MERRITT & CO., INC.

^ AXE-TEMPLETON GROWTH FUND OF CANADA, LTD.

An

International Organization

& Order Room: 400 Benedict Ave., Tarrytown, N. Y.

Telephones: MEdford 1-2272

MEdford 1-4612

Mutual

Offices

in

Principal Cities

I Branch Offices:

85

BROAD

In Canada

4-2220

430 N. Camden Drive

HAiwver 2-6962

BRudshaw 2-8258

2808 Russ

STREET, NEW YORK 4, N. Y.




Montreal

—

Edmonton

Victor 9-7708

—

ALberta 4-7537

Television Shares

Management Corp.

EXbrooh 74)715

Address.
King Merritt A- Co. (Canada) Ltd., 201 Notre Dame St. IV., Montreal 1, Quebec, Can.

King Merritt &

Co.

(Canada)

Ltd., 521 Tegler Bldg., Edmonton, Alberta, Can.

Chicago 3, III.

115 Broadway, New York 6, N.Y,
N«hia

Building

San Francisco, Cal.*

''

from your invest¬

135 S. LaSalle St.,

WHitehall

730 Fifth Ave., N. Y. 19

now
or

Funds

Headquarters:

Teletype: Tarrytown, N. Y. 1708

;

ment dealer

MMSMMHHHMUWMmMaMMMBHI

Specializing in
Head Office

Bookletd^ospectus of this

Mutual Fund

Gty-State_

,

Chronicle

The Commercial and Financial
28

.

.

.

Thursday, August 7, 1958

(524)

bought,

25

Continued from page

second

acquired in the

none were

Continued

from first

quarter. Buying of Chase
shrank from 18,500 to

page

Manhattan

shares: in Chemical Corn,
30,500 to 7,500; in First Na¬
tional City Bank of New York
from
54,000 to 2,000; in Irving
Trust from 27,000 to 900; and in
Guaranty Trust and Hanover, the
5,500

Funds Still Cautious

from

Maiket

Midst Rising
cumulative Fund and Sharehold¬
ers' Trust of Boston; IT&T, with

Fund the largest of
(35,100). Best bought

Affiliated

three buyers
jn

this

Corp.,

Radio

was

group

notably on the previous buying completely dis¬

quarter;

the

ing

of American European
and Wellington (1,887)
lightening
during

part
975)
some

(1,and
the

by the habitually inactive
closed-end Boston Personal Prop¬

half

Energy

and

Pennroad,

Fund.

Machinery
attracted five buyers in the face
bf declining earnings, including
Value Line Income Fund (10,000
newly), with sellers including In¬
vestors
Mutual
(18,500)
and
Knickerbocker.
There was also
.good buying of Caterpillar Trac¬
tor, by Fundamental, Wellington,
«gnd de Vegh; of Dresser Indus¬
tries, by the United Funds group
find
Pennroad;
Ingersoll-Rand,
iigain by the United Funds group,
and

Axe

"B."

There was

other

hand,

only selling in Allis-

and
Wilcox, oi

Chalmers, by Commonwealth,

others; in Babcock &
which
Lehman
sold

nary

Pitney-Bowes

Activities in Miscellaneous

Category

was

evoked:'

AT&T

remarkably

strong interest, with no less than

managements acquiring it to
of nearly 107,000 shares

15

seller.

a

1

the

On

buyers.

no

(10,000) and Selected (7,000 new¬
ly).

by Institutional Investors
and United Science, with

Mutual

Shoe

United

Here

and

bought

Mixed

Heavy Machinery

Price,

continued, but not as strongly
previously. Here, C. I. T. Fi¬
nancial was the most sought-after

issue, with the 6 acquiring man¬
agements including Fundamental

Mutual

Share,

Interest in finance company is¬
sues

as

including Inves¬
(28,200),
Scudder erty Trust; whereas some buying
came
in from the big Investors
jbund, de Vegh, and others.
As
Mutual
(4,400 newly).
In soonin the previous quarter, Philips'
Lamp Works encountered
only to-be-split Addressograph there
were only two sellers, Investment
buyers, namely Putnam, Niagara
Co.
of
America
and
T. Rowe
with five buyers

tors

appeared.

by

England
Fund,
Eaton
&
Balanced,
Wall
Street

Howard

Investing, Blue Ridge, Sharehold¬
Trust,
and
Knickerbocker;
and bought only by Investors Mu¬
tual and Concord Fund.
Kimber-

ers'

ley-Clark was sold by United Ac¬
cumulative, Delaware and Axe
"B" and bought by Investors Mu¬
tual. West Virginia Pulp & Paper
was

sold

out

by

by M. I. T., and closed
Lehman and de Vegh.

State

Street

was

the

sole

seller.

largest

bought by Eaton &
Howard Balanced, General Inves¬
tors Trust, and Blue Ridge; with 4
management selling, notably Put¬
Telephone

was

and Investment Co. of Amer¬

nam

good (preseasonal)
Coca-Cola,
buyers
including Fundamental Investors,
Value Line Income Fund, Invest¬
ment
Co.
of
America, and
ica. There

was

for

demand

all representing initial

Pennroad,

commitments.

and

18,500-share

its

sold

Pennroad

bloc, and National Securities Stock
end Income Series ail their 30,500;
also in Consolidated Natural Gas,

by Affiliated Fund, Investors Mu¬
and
Wellington;
and
in

tual,

the United Funds group; and

sold only by

Eastern Industries was bought
Lehman

Pine Street.

Rubbers and Tires Sold
Goodyear

was

sold by 8 man¬

agements,
including
Dividend
Shares, Axe "B," United Accumu¬

lative, and others; with its 4 buy¬
ers
including
Investors
Mutual
was and
Wellington.
Firestone
was

(who

Johnston

by

United

newly),

(10,000

and

Funds

The

Gas, by Adams-AIC.
best-liked natural gas issue
United

also

bought the company's convertible
preferred). Haloid Xerox is an¬
other of the 14 issues bought by
Lehman

shares

(10,000

Corp.

newly).
Polaroid, an interesting trad¬
ing favorite with "growth" at¬

3S1 Paso Natural Gas, which was dumped
by Wellington
(10,900) mosphere was bought newly by
National
Investors
(5,000) and
bought by seven funds, including and others, and bought only by
Investment Co. of America (1,000)
United Science and Shareholders' Investors Mutual
(8,200).
U. S.
'Trust.
This
issue,
concerning Rubber found its largest seller in -as well as Johnston Mutual and
United Science; and sold in the
which unfavorable earnings esti¬ Fundamental
Investors
(14,000).
mates
have circulated since the In Goodrich there was an even amount of 13,300 shares by Fidel¬
end of the quarter, was sold by number of managements
buying ity.

and
Southern

i3tate Street (42.000 closeout)
Pennroad
Katural

In

(5,500).

Gas

and

buyers, and

in

there

'Transmission

no

,

Gas

Texas

sellers.

fin¬

profit-taking dur¬

some

Schroder Rockefeller Div.
The

Interest in Banks

and Finance

Blue-Blue Chip, IBM,

ally met

90,000 shares.

While there

Equipments
The

out its

blocking

Investors,

Incorporated

Reduced

Caution Toward Office

ments

stocks,

as

Companies

were more

previous

in

prevalent

somewhat.

waned

in

the

quarters
example,

For

first

a

quarter 21.-

000 shares of Bankers Trust were

New

election

director of

feller

manage¬

buying than selling bank
the
general
interest
so

whereas

&

Co.

York

nounced

President.
dent and
Jordan &

Inc.,

a

Bergfeld

Broadway,

61
has

Avery

Mr.

J.

Schroder Rocke¬

City,

by

A.

of

been

an¬

Rockefeller,

Bergfeld is Presi¬

director of Stevenson,

Harrison, Inc., manage¬

ment consultants,

New York City.

V
IT

ELECTRONICS

iveystone

Keystone Fund

Custoaian Funds

ofC anada, Ltd.

39™ CONSECUTIVE DIVIDEND
The Directors of TelevisionElectronics

declared
per

a

Fund, Inc. have
dividend of

8^

share from earned in¬

specific investment

President




CAPITAL GROWTH in the

your

local investment dealer

50

Keystone Company of Boston

Congress Street

volume.

in

Producers

had

been

able

absorb, in very considerable part, important elements

Boston 9, jMaea.

to

of

higher costs because they could be spread over so large
an
output. Wage increase after wage increase failed to be
fully reflected in prices for a period of time, and profits
for a while remained good. Apparently many supposed
that organized labor could continue to exact greater and
greater levies from employers almost without end and still
leave the consumer free of the necessity of paying the
piper. As

soon as

volume declined—and in some instances

before that—the fact that such could not be became

even

costs than

But

in

they obtain for their product—and long stay in

business..

:

these

higher costs, mostly labor costs, are in
effect what organized labor, the social worker and the
politician call "social gains"—which must not on any ac¬
count be surrendered
or
compromised. Higher wages,
shorter hours, less serious effort on the part of the wage
earners, and all the fringe benefits—these are the things
which the New Deal claims to have brought to the worker
and these

the

things that succeeding politicians have
to challenge. The employer has
been and still is helpless in the circumstances. He has to
pay, and all that he can do is to try to get back his money
with a modest profit from the consumer. These are the
things, too, which according to the New Deal philosophy
keep depressions away and employment plentiful. These
are the
things that bad times must not be permitted to
disturb—not even if the taxpayer must help support those
who are thrown out of work by them.
are

hardihood

the

had

not

of the matter is that

The cold fact

had it not been

for

astounding technological progress and the investment
of billions in equipment, it would have been quite im¬
possible for business to carry on at all in the face of the
exactions of labor. It is this fact that makes a mockery of
the constant
in

what

is

comparison of wage changes with increases

known

"productivity." Gains there have

as

been in output per

manhour, of course, but they have cost
the employer money in the form of interest and other
capital charges. The President—and the Lord knows how
many others—have had things to say about gains in wages
which exceed gains in productivity. It has never been
clear to us by what line of reasoning it is concluded that
labor was entitled to collect on improved productivity that

machinery and equipment was responsible

new

for. and

we can

without

laying

Of course,
in

not understand how labor could so

a

collect

basis for higher prices.

there

was a

time when such abuses as these

another held in check by limited
supplies of funds available to business. But here again

were

one

degree

or

Deal found

the New

a

"solution" in the form of

a

new

fangled equivalent of greenbacks which had for genera¬
tions been discredited on all sides. Possibly it would be
unfair to assert that funds out of the Reserve banks and

commercial banks
to

were

and

are

employed by government

prevent any of these adjustments or to make certain

that "social
were

the

or
S-41

Tlie

Ayguj? 4, 1953

thkm go 3, Mo

fully managed
Company
seeking long-term

Mutual Investment

expanding Canadian Economy

possible GROWTH
Prospectus from

4, 1958.

139 S. LttSall* 9t.,

purpose

fall

the

with

anything else be expected? Take a look
costs have inevitably risen sharply

Unit

record.

the

blessing—deficits placed in the banks of
certainly tend to have that effect. They
possible for such economic sins to be committed
as

country

make it

gains" in the form of excessive labor demands

lost, but the huge deficits which now seem to be

not

regarded

1958, to shareholders of

Chester D. Tripp

a

For RESERVES, INCOME

payable August 30,,

record August

A

Covering all classes of
securities, each Fund with

or

come,

How could
at

expensive

TELEVISION-

FUND, INC,

mystification over the
price index keeps rising. Others re¬

consumer

peatedly insist that this is a lethargic series which takes
time to respond to economic changes. But a year has
elapsed since we began to slide into the current recession,
and no sign of an end to the upward movement of prices
has as yet appeared. And now come what was, of course,
all but inevitable, a number of announcements of price
increases in basic materials which can hardly fail to be
reflected in finished consumer products in the course of
time. Steel has caught the eye of the politician, but other
commodities are behaving in a similar way. Aluminum
whose uses have now become legion, and various of the
other raw materials, are again moving up.
(

and selling, but the latter included

only

were

those who profess

are

apparent. Of course, employers can not pay out more

Halliburton Oil Well Cementing

Combus¬
St. Regis Paper attracted buyers found 6 buying managements, in¬
tion Engineering, with closeouts
only, including Wellington (75,- cluding Fundamental (21,000), the
by de Vegh and Selected Ameri¬
000 newly), Axe "B" and Dela¬ United Funds group (8,000), Fi¬
can, and a large sale by Diversi¬
ware.
Container Corp. of Ameri¬ delity (9,500) and Investors Mu¬
fied.
ca
was
bought
by
Wellington tual (5,600); with 4 sellers, includ¬
Putnam
and
State
Street.
(31,100), Selected, Fundamental, ing
Natural Gas Issues Irregular
Selling
predominated in Ar¬
kansas-Louisiana Gas, of which

There

fact that the

a

The

International Paper was sold
New

complete absence of sellers.
single
buyer
was
Wellington (40,000), followed by
State Street, with a new commit¬
ment
of
35,000 shares.
General

and

Papers Mixed

its

2,000 shares; and

continued, stubborn price rises and all the accompanying
evils of what is known as inflation.

the tune

entire Buying interest predominated in
Champion Paper & Fibre on the
15,000 shares, Shareholders' Trust
all of its 5,720, and Energy Fund part of Axe "B" and M. I. T., while
all its

We See It

As

a

—

and continued at least for

If the

should
two

or

a

considerable period of time.

politicians do not like recent price increases they
seek the cause in their own actions during the past
three decades.

If the authorities believe that thev

can

take the

eco-

Volume

188

Number 5766

.

.

The Commercial and Financial Chronicle

,

nomic

state-appointed

the

owner

curse off all this
by numerous anti-trust suits and
like, they are sadly mistaken. Whether they can take
the political curse off themselves in this
way is a matter

that

leave to others better

we

qualified to pass judgment
know is that, whether or not

upon the matter. What we
there have been abuses of the sort

alleged, no such course
gets to the root of the difficulty. We may or

of action

not continue to have the recession still with

may

unless

mend

we

our

ways

shall

we

continue

but
have

us,

to

from

lunch.

our

was

upon

piece of

a

about

to

nudged

pick

resting
As I was

spoon,

paper.

the

up

she

spoon,

elbow, pointed to the

my

and made motions to show

paper

I

served

Part of the table dishes

porcelain

a

who

she

was

should first

thoroughly rub the

with it.

spoon

Peking is

beau¬

a

tiful city and in and around it are
vast historical buildings and rel¬
ics.

They

have

maintained

been

and repaired with the preponder¬
ance

of

offer

a

Chinese

the

red

paint and
startling and pleasing ap¬
To mention just

pearance.

few,
within the

Imperial

a

Palace
City, the Summer Pal¬
ace, the Ming Tombs in the Ming
Valley and, of course, the Great
Wall itself, all go to fulfill a sight¬
seer's and photographer's dream.
Forbidden

Improving
I

have

of

difficult

to

able

Living

been

standard

lions there

Standard
about

asked

the

living in China.
It's
give an understand¬

answer

because for vast mil¬

is not such

thing as
and
child have not risen much beyond
the
beast-of-burden
stage.
The
sights one sees of the stresses, the
it.

know

we

Man,

a

woman

strains, the unbelievable extent to
which

human

a

abused,

leave

frame

be

can

almost

one

physi¬

cally ill. And yet the lot of these
people is better than it was, and
improving. For millions more one
sees contentment, happiness, and
believe

would

one

from

oppression

than

their

freedom

more

and civil strife
previous generations

have known. Corruption and graft
told

were

we

confirmed

and

—

by people living outside the area
—have disappeared. Petty theft is
his

does not bother to lock

one

rare;

We

home.

lock

did

not

bother

hotel room dooms.

our

to

As an

example of their apparently

fa¬

natical honesty, when leaving the
hotel in Canton I failed to pick up
some

$2

or

followed
found

less in change.

me

the

to

after

me

I

They
and

station
seated

was

the train in order that

on

they might

deliver this change to me.
It cannot be that the present way

of

life

there

is

pleasing

are

many

to

everyone;

refugees

con¬

stantly arriving in Hong Kong, for

example,

but they can be but a
the coun¬

flea-bite compared with

try's
population
of
600,000,000
people, and we should think they
are mostly small farmers who are
still individualistic enough to re¬
sist being brought into the co¬
operative farm movement. Those
in authority freely state that the
aim is to add slowly and patiently,
yet without interruption, to the
standard of living, that to try too
much too quickly would be fatal,

lead

to

inflation

and

endanger

their whole program.
Unless

the

dream of one's
tion

going to pose an
overwhelming facesaving problem
in

directions than

more

difficult

to

believe

resembling
China
that

have

no

anything
desired
in

plus the 5% return
ment. Here
—state

whole
senses

improvement
trying to bring about.
While

in

they

are

we

friendly,

contacts

personal

we

courteous,
natured and pre¬
through a generous

good

to

go

dose of goodnatured

ribbing, they
are
as a people exceedingly sen¬
sitive and touchy at the slightest
implication of lack of confidence
in

their

at

sharp

them

as

business

undertakings

or

belittling criticism of
or at the thought

or

nation

a

that there is

or

ever

vided

China.

those

businessmen

We

be

can

a

di¬

caution

would
and

in

men

public life >vho would have deal¬
ings with China to bear the fore¬

going

ever

sirable

in mind.

results

ensue

can

com¬

organization.
How long this hybrid will
persist,
cannot say. But I understand
the private rights involved

be bequeathed

transferred;
true, the joint
type of enterprise
or

is

last for generations to

all-important

;

come.

matter

of

was constantly
coming up,
listening to the Chinese side
of the story and to the outside
phase of it, none of which inci¬
dentally came from traders, we
are frankly a little confused.

and

One

thing

needs

is

most

would

is

certain. — China
multitude of things and

a

desirous

be

try to

waste

a

of

trading.

of

time for

this field in

cover

It
us

re¬

a

this kind. Any Canadian
exporter who wants to trade with

port

of

China—and
his

if

he

is

conscious

of

interests and is farsighted

own

scene

is

a

of observa¬

appraisement are less
useless, then we think the
vast
majority of the people of
China have a
government they
a government which is im¬
proving their lot, a government in
which
they have confidence, a
government which stands
no
chance
whatever of
being sup¬
planted. All this quite obviously
'indicates a poltical problem that
will sear the very souls of some
Western
powers,
and which at




with

inevitable treatment:

the

view

our

meet

might

be

even

welcomed

that crowds

We

and

such

saw

by the

When

speaker.

a

at

harangue

always

was

virtues

of

could

assemble

about

anything—but for how long

don't

crowd

a

know.

and talk

There

is

no

prac¬

tice religion, there could be a need
for this—not perhaps out of re¬

gard for religion but because there
is

political problem due to the
large number of Moslem followers
a

in

addition

to

the

Buddhists.

I

to

Buddhist

can

readily obtain from

Canadian

our

economy—
our

De¬

temple,

morning in Peking

On

we

Sunday
heard what

partment of Trade and Commerce

sounded like church bells. At first

in

we

Ottawa

a

good idea of what is

could

not

believe

wanted. The Trade Commissioners

Persistently

of

street from which

government who

our

area are

picture,

cover

that

fully conversant with the
and we feel we should

they keep Ottawa
quarters fully advised.
assume

head¬

Canadian

Trade

With

Red

China
If

of

to suggest

the

a

side

sound

was

church bells.

The front

children

of

doors

have anything
it
is
that
our

we

we went down

ears.

the

was

We

found

the church, a large Roman Catho¬
lic edifice, within a walled en¬
closure.

Urges

our

coming, and certainly it
sound

court

playing,
closed

were

children playing

full

was

the

front

and

again

and squatting in

here
exporting front of them, but we proceeded
fraternity shake themselves loose, to a side door and found a church
get busy and visit China either which could accommodate a very
Strategic—Goods Embargo
individually or as a group, prob¬ large congregation. Mass was in
The so-called strategic list of ably in the latter form initially, progress; the church was not full
but keep at it. It was galling to but there was a
large congrega¬
prohibited
exports
adopted
by
meet and to talk with the selling tion of
some nations has become in Chi¬
people, devout to all ap¬
forces of other Western powers,
nese
pearances, young and old — male
eyes almost ridiculous.
So
not only obviously getting busi¬ and
far as we can see (always with the
female—very small children
ness,
but
enthusiastic about it crawling in the aisles—older ones
exception of really strategic ma¬
while our people seem to sit back
moving around from pew to pew.
terials) about all that is happen¬
and wait for a silver platter deal. The
clergy were all Chinese. We
ing so far as China is concerned
Our exporters have got to learn to
stayed for part of the service.
is that annoyance is created, the
develop
resourcefulness
and to There are other authorities more
goods are forthcoming from some
take
reasonable
business
risks. competent than I am to discuss
other source, progress is not being
Outside China we heard a good this phase, but so far as I could
seriously retarded, and ironically,
deal about the Chinese importing find
out
all
clergy
must
be
a
great long-run benefit may be
movement endeavoring to make Chinese and, if this is so, then
conferred upon
the Chinese by
one sided deals, about their reneg¬
perhaps "freedom" is more ap¬
forcing them to make things for
ing on contracts and so on; but parent than real. This is only an
themselves.
we were unable to uncover a sub¬
observation. Someone else, I am
One highly placed person, not
stantiated case. Our people should
sure, can give a positive answer.
resident in China but thoroughly
make clear the deal they want,
Unquestionably there is some
familiar with Chinese people,
make it reasonable and orthodox,
subtle difference in life between
made the statement to me that the
and have a full and complete un¬
China and other nations of Marx¬
capacity of the Chinese to learn
derstanding of the transaction be¬ ian
persuasion. One feels no sense
and perform is governed entirely
fore they start — documented, if
of domination, no depression, no
by the teaching capacity of others
necessary, throughout. If they do lack of freedom in
moving around
who would undertake to instruct
this, deliver on time, and do not and so on.
Perhaps it is inspired
them. Their thirst for knowledge
deviate from the terms, we should
by the courtesy, good nature and
is now great, and a visit to the
be inclined to believe they won't
natural politeness of the people.
University of Peking shows a lot experience undue difficulties. This
One goes shopping as he would in
of eager and enthusiastic students.
opportunity,
coupled
with
our
Montreal—big stores, little stores,
A similar attitude, we were told,
need for export markets, should
all sorts of goods. Food is rationed
prevails in other seats of learning. sound a clarion call to our gov¬
on a seasonal basis, we were told.
As far as education of the masses
ernment to see to it that, if any
In hotels and restaurants there are
is concerned, they have a long,
Canadian enterprise should be in¬
no restrictions. One can go sight¬
long way to go. Steps are now duced
by
outside
influence to
seeing, rubbernecking the camera
afoot to change the Chinese char¬
deviate from its responsibility to
acters
to
the
Roman
alphabet the Canadian worker and to the using at will—but must get an
export permit for his undeveloped
which is in general use in the
Canadian
economy
by declining film which was a rather
perfunc¬
Western world, and it is believed
legitimate
and
clean
business,
tory procedure.
this will be a tremendous help in
drastic and immediate steps be
For those who have read so far
the
educational
process.
There taken to discipline any such Cana¬
seem
to be
many
professors of dian corporation. Canada needs no doubt a variety of impressions
political economy around — and export trade, and it should be of life in China has been formed.
many
students. We twitted one sought after everywhere with no Some may be favorable, even too
professor with the gibe that no interest other than the welfare of much so, some skeptical and un¬
doubt he found Adam Smith and
believing. Both are wrong.
Canada involved.

gain

areas

ignoring

by

in the

these

Chinese

character.

tors.
their

Laughingly he replied, ''Well,
theories
are
not
exactly

popular with

at

us

present."

of

Matter

Political
We

and

had

Chinese

Other

some

innovation

economic

in

organization has resulted from the
liquidation

of

the

Businessmen who

Kuomintang.

were

"clean"

free from entanglement

Constitution

their

business

financial

the

on

their capital, even

enterprise

may

and

be

practice
speech,
lowed

with this

things
terial

of
we

in
are
way,

the

5%

though the
managed by

are

ity

be

done

of

in

a

pro¬

body can do so for him. China is
a socialist state, a managed econ¬

doing

—

but

before he

can

unfolds.

adhering to the teachings of
with

modifica¬

Karl

how

State

ma¬

ment—therefore he can't be really

of the people who

them

omy

eyes

of
fol¬

charged with the responsibil¬
of

real¬
No¬

ize what the picture

own

the

Chinese can't be "agin the govern¬

Marx

some

tions to meet Chinese

free.

is

supreme,

There is

reality. The

man

none

an

instru¬

Our

"Myopic"

*

Treatment
As

the

mentioned

earlier, 25% of
population live * in
maybe in 20 years they

world's

China;
will

be

one-half

of

the

world.

Their

present rate of progress is
beyond description — but they

have,

as

have said,

we

million

a

miles to go before the masses havea

semblance of

living.

decent standard

a

They

moving fast,
picture a fu¬
people
—skilled, educated, industrialized,,
If

nation

ture

are

one

of

can

billion

one

and with

a capacity for work that:
beggars description—the high cosfe
economy of the West is eventu¬
ally in for revision. We of the

West want
and

such

governs

der if
as

part of the political

no

economic

The

that
I

won¬

similar experience-

a

how

people

a

philosophy
states—but

had

we

about it?

feelv

would

we

to be

answer seems

clear.

Regarding the so-called "recog¬
of China in the political
sense, one just does not see how
600,000,000 people, which may benition"

billion before too long, can be
given myopic treatment. I am net
prophet—but a "bonnie Prince
a

Charlie" from

Taipan

across

seems more

the

sea

from

than unlikely..

Just how face is to be saved there

presents

staggering

a

problem.

There is every

people

indication that the
China as a whole are

of

satisfied

with

It

to

seems

it

their

government.

meet their needs and

to

seems

great

be

conscious

of

a

job

to be done to lift the*
living and the general
way of life of the masses out oJ?
the
black hopelessness
that ha#prevailed in the past.
standard of

I believe there is good and legi¬
trade to be done.
Other

timate

Western

people

are
getting. itnegligent and un¬
fair to herself if she does not gef
her share. She won't get it, how¬

Canada will be

without aggressive action.

ever.,

Robert H. Matthews With
Dean Witter & Co,
(Special to The Financial Ciiuonicle)

ST.

LOUIS,

Matthews
with

has

men's

—

H.

&

Robert

H.

associated

Co.,

Boat—

Matthews

Bank

thews

a

Building.
Mr. Mat¬
formerly with Scherek,
Company and in the past
partner in Reinholdt

was

Richter
was

Mo.

become

Witter

Dean

Robert

Gardner and G. H. Walker & Co.

technique, there is no pre¬

tense

that

all

are

equal;

on

the

contrary "the working class," "the
are

With

freely referred to.

Reynolds & Co.

(Special to The Financxai. Chronicle)

CHICAGO, 111.—Gerald A. Pera

-

gine has been added to the staff
of
Reynolds
&
Co., 39
South
La Salle Street.

Joins McKendrick Firm
(Special to The Financial Chronicle)

of the "Com¬

rade"

peasants,"

years

what is going on with

new

Freedom
can

see

his

speech, right
in the

criticism

being
or

which

has to

said at the beginning, one

dis¬

freedom

religion.
believe,

interest

receive

in

assembly and

or

organization have been allowed to
maintain

of

the

to

vides for freedom of

One

Freedoms

interesting

relative

cussions

Business

Private

As I

Questions

however.

Regarding the freedom to

like

be

150

reaped.

of

Chinese "Hyde Park."

One wonder&

would

last

moved

a

hy¬

the

over

country crossroads.

the

on

China

today
it had
along the lines of dembcratic progress instead of exploi¬
tation and corruption.
The wind
was sown, the whirlwind is being,
if

street

giene, on the desirability of con¬
tinuing to swat flies and kill mos¬
quitoes, or on some such subject.
Theoretically,
we
suppose
one

we

what

asked what the spouter

we

dispensing, it

was

immediately

crowds

and at

corners

can

listen to

said to be gone.

are
*

Right of assembly exists in the
sense

material

the

responsibilities; but the plun¬
der, the privilege and corruption

authorities.

assemble

in

according to his talents and

his

so

largely confined
"suggestion box" principle,
this. highly restricted sense it

rewarded

is

sense

be

to the

In

One

Anything

would

ties

we

than

want,

it.

sedition

enough to realize his responsibili¬

John Stuart Mill among his men¬

and

know

we

of

found Christian churches of many
denominations — I also visited a

and

hope to
sensitive

as

savoring

economic

Only unde¬

can

nothing whatever

his invest¬

on

have joint private

of interest to all students of

to

individuals

found

pared

would

disastrous effect upon the

a

re¬

service

enterprise which should be

parative

other than

reason

development

a

It's

one.

that

is

war

if for

such

course,

managerial

Trade

is

stage

some

of

ment"

in

The

plans for

In many ways

will,

of

and, if this
private-state

Impressions of China
it

and

the

perhaps freedom of speech could

type

may

room

If

ceive the regular state
salary for

that

5

page

personnel.

business is appointed

he

his

may

Continued

of the

manager

one

mounting costs and prices.

2$

(525)

MINNEAPOLIS, Minn.—Hardy
D. Silverberg has joined the staff
of McKendrick, Haseltine & Wil¬
son,

Inc., 114 South Ninth Street

The Commercial and Financial Chronicle
30

Of

Thursday, August 7, 1958

.

.

The

of gross income

this

This Week

BANKERS TRUST COMPANY

Interest

etc.

52%

18%

30%

1955

62%

16

23

1956

66

28

1957

1952

56

1953

58 k-kvk-H:'

24

16

60

"1954

At the turn of this century New York

Fees, Cometc.

14%

24%

k'';v 11

23

11

25

;'P

TEN-YEAR STATISTICAL RECORD—PER SHARE

-y'; Operating

"Book

31%

spin. Also, it became clear that the

38%
43%
49%

31%

pending Treasury financing opera¬
tion was being endangered^by the
continued
unsettlement
in
the

49%
493/4

40%

market. Therefore, on July

43%
45%

Federal

$371

2.75

397

1950

50.02

2.69

420

1.82

1951

51.85

2.95

489

1.89

1952

53.27

3.64

507

1.95

1953

55.17

3.93

493

2.09

37%
38%

2.23

1955

58.83

4.73

486

2.60

out the country.

1956

60.25

5.02

498

2.80

68%

58%
61%

1957

63.71

5.64

518

3.00

65%

58%

restricted scope became

Later the need for a bank of such

conditions in the banking field, and as
a result of several developments, including mergers of Mercantile
Trust Co. in 1911 and Manhattan Trust Co. in 1912. Bankers in
less because of changing

conversion to a commercial bank
Federal Reserve System, then

the final step in its

took

1917

when it became a member of the

period of

newly organized. The trust company then entered on a
expansion in its banking department.

195234

Public National Bank & Trust Co. of New York
was merged with Bankers.
Public was the successor to a private
banking business that had been organized in 1905. In 1908 it was
incorporated as a state-chartered institution. Essentially a neigh¬
borhood bank, it prospered, and through 1928 there had been some
13 capital changes in the form of stock dividends and issuance of
new .shares through
rights. Capital increased sixty-fold, and
tether increases were made down to 1954.
In April, 1955

Public had long maintained a large

brought to the consolidation.
with one in London.

earnings just doubled; invested assets was up about

STATEMENT OF,CONDITION—JUNE! 30/1958

.v

U.

.

Loans

State & raunic. securities—

Otiier

int.

liab.

Cust.

Assets

receivables

Deposits

9,837,000

Reserve,

taxes,

3,022,000

exp.,

2,819,846,000
23,925,000

etc.

60,800,000

Accept, outstanding _i._-.__
bonds bor¬

Liability under

3,872,000

rowed

3,872,000

borrowed

3,837,000

Other liabilities

$3,173,557,000

$3,173,557,000

A breakdown of these assets follows:

Cash
25.6% V
U, 45. Government obligations—.^ 22.7
—

—

——

Other securities

Banking

3.4%

—

premises

Miscellaneous

0.7

____________

"T

MATURITIES
5 to

5 Years

10 Years

1951

90%

10%

1952

83

15

1953

88

9

1954

75

21

♦Data prior

Treasury's refinancing operations.

Over
10 Years

3%

-

Up to

5 to

5 Years

10 Years

*1955

70

24

1956

82

11

1957

87

.5

.

•

Over
10 Years

6%
V

7

1955

Continued

from

page

shift in Federal Reserve thinking
mark

and

the

beginning

of

a

.

"new era" in open market opera¬

tions.

Although

the

serve

has

no

its

given

future

would

Federal

Re¬

inkling

as to
the answer
to be in the negative.

intentions,

seem

The recent

changes

may

be viewed

departure

temporary

a

market.

Federal Reserve on

on

issues

to

of

engaged
in large open market
purchases throughout most of this
period of market weakness. Dur¬
ing June, open market purchases
amounted to almost $1% billion,
the largest such purchases for a
comparable period in nearly a

Support

sharp

drop

in prices

June

19, the Treasury imme¬
entered the market with

diately

limited

relatively short maturity.
In addition, the Federal Reserve

of the market.

the

be

large buy orders and in the fol¬
lowing 3 weeks purchased almost
$600 million of its own obliga¬

decade.

the

tions, including $589.5 million of
2%'s.
Of
these purchases, $456
million of the 2%'s were retired,
with the balance going into the
Treasury's
investment
accounts.
Moreover, on July 9, the Treasury

While

reserves

about

so

one-half

provided

"In view

were

of

circulation, the remainder went to
build up member bank reserves.
provision of

reserves

the first
half
of' June
was.
the unprecedented step of in
publicly announcing the details of designed in part to ease money
market

these

purchases

this

but

news

served to steady the market

temporarily,
ment

as

the

over

tax

payment date and to help provide

only

favorable

a

Treasury's

did the announce¬

in the following

conditions

tion.

week that

environment

opera¬

the

shows

II

Table

sources and uses

Treasury financing would, for the

of bank

the

for

financing

June

—

total

reserves

July 18 which
conditions in

of

Government

States.

securities

Open

market,
the
Federal
Market Committee has in¬

structed

the manager of the open

market

account

short-term
ties."

to

purchase Gov¬

securities

ernment

This

in

addition

was

a

to

securi¬

Government

dramatic

move

in that it marks the first time that
a

public announcement has been

made of such

change in practice.

a

ab¬

by the continued gold out¬
and
a
rise
of
money
in

The large

United

the

Prior to this

sorbed
flow

Only"

only indication of the change
in
practice
was
a
terse
onesentence
announcement
by the
stated:

present,

transmitted to other sectors

"Bills

of

The

Securities Market
soon

•

Suspension

Trouble in the Government

System's

announcement, the
market operations

open

had been conducted in accordance

with

a

which

adopted in
1953
that "operations
System account should be
policy

provided

for the

confined
market
of

to

the

short

end

of

the

including correction
disorderly
markets)."
Con¬
(not

trary to a widely held view, this
policy did not actually specify that
operations for the System account
be limited solely to Treasury bills
but said

only that they should be

4

for bankers

alone.

From

1355

it

reflects

the

I

merger.

showing on the rate of return derived from its
holdings of securities follows:
February

'"Loans

"Securities

2.70%

1.61%

1955

3.16

1.76

1956

3.35

1.92

1957

3.41

1.72

"Loans

.

-Refinancing-

"Securities

3.76%

1.96%

4.21

2.24

4.48

2.55

2Vzs of 1859

to 1955.

This tabulation brings out the rising rates of return
categories.
As loan volume has been on the rise

on

the two

generally,

Bankers has benefited by greater volume of loans at
higher rates.

3s of 1964

(Certif.)

Date of issue
Amount

include public data prior

First Half of 1958

-Issues Offered In:—

loans and from its

"Does not

Looking to the future, the im¬
portant question is whether these
changes
reflect
a
fundamental

3

Price Behavior of Treasury Issues Offered in the

The 'bank's

in Federal?

Reserve Practices?

from
practices, dictated by
the disorderly conditions prevail¬
ing in the Government securities

TABLE

to

A Lasting Change

took

2.3

assets

In the seven years bhded
1957 the bank's government
bond portfolio broke down at the year-end as follows:
Up to

28%; dividend

customary

After
$263,255,000

22,643,000
59,356,000

acceptance
against bonds

on

dep.

Capital
$40,299,500
Surplus
160,000,000
Und, profits,-.,62,956,000
Dividend declared

32,970,000

invest

6c

sec.

723,114,000
1,435,606,000
77,390,000

Banking premises
Accrued

respect by directly supporting the

as

,

$813,769,000

another

in

practices

customary

shares.

Treasury anil Federal Reserve

LIABILITIES—

&> due from banks—
8. Govt, securities

merger.

The gain to the stockholder (con¬
sisting of the increases in his equity plus dividends paid in the
period) was $40.41 or at the annual rate of $4.04. This was 81%
of the mean price range for the period.
Bankers Trust's dividend has been unbroken since organiza¬
tion. On the present annual rate of $3, with the price approxi¬
mately 67V4, the yield is 4.47%. The shares are selling at about
11.9 times 1957 operating earnings; the 1957 rate of earnings on
year-end book value was 8.9%; and that year saw only 53% of
operating earnings disbursed in dividends.
Bankers' deposit ratio is about 10.7 to 1. As a measure of
the conservatism of this relationship, the Commonwealth of Mas¬
sachusetts specifies, at maximum, 16% to 1 as one of the require¬
ments imposed on its savings banks for the purchase of bank

At the 1958 mid-year date Bankers'

ASSETS—

than

other

securities

include

Treasury bills. The Federal Re¬
serve
also
departed
from
its

operating

about 42%;

increased

th'at

range

increased approximately 86%.

to $3,178,558;000; loans and discounts $1,435,606,000;
funds $263,255,000—with 4,029,950 shares of $10 par.

C4fik

book value

decade

18 the

announced

Reserve

of its open market
operations would be broadened to

There are now 44 domestic offices

total resources had grown
and capital
At the end
of 1957 there were 22,469 shareholders; and about 20% of the
bank's stock was held by savings banks, insurance companies,
pension funds and like institutions. Bankers Trust ranks as the
country's seventh largest bank.
11 '
*

;

the

branch system and at the

had 25 offices to add to the 15 that Bankers

time of the merger

the

In

641/4
67%

giving effect to consolidation of the tvo banks prior to

forma

*Pro

rush for liquidity
tail-

353/4

$2.71

49.23

subscribed.

downward pressure
persisted. The news
the Middle East

in

1.65

$48.68

1949

524

to be 20 times

crisis

$1.61

1948

4.24

pledged to refrain from accept¬
ing active accounts other than those of a strictly reserve nature.
The idea found great favor immediately. The stock was reported

the

sent the market into another

57.53

Indeed, Bankers was publicly

the market

of

Low

Assets

1954

was

;

High

Dividend

Earnings

what its name implies, a bank for bankers
rather than for the general public. Its primary function was to
accept fiduciary business from national and state banks through¬
organization

the

on

and the ensuing

,—Price Range—N

Invested

Value

t—

"

*

mil¬

Despite these large purchases by
both the Treasury and the Federal

banks.

two

million

level of about $400

a

early in June to about $600
lion early in July.

Reserve,
based on combined data of the

"Pro forma,

During

period, net free reserves rose

from

missions,

Securities

.

City found itself well

supplied with trust companies. By 1902 there were nearly 50 of
them, as they had sprung up to take care of growing personal
fortunes, reorganizations, mergers, enlarged corporate needs such
as registering and transferring. This work in earlier days had been
taken care of by individuals, but the increasing need for the
facilities meant that corporations had to replace individuals;
However, in 1903, Henry Davidson, recognizing that there
was a place in the banking field for a new type of institution,
took the lead in the organization of Bankers Trust Co.
The

Inc. from

Loan

missions,

Securities

1951

Bank Stocks

—

Inc. from

Loan

Interest

fr.om

it indicates

16;

July

$775 million were added

some

to available bank reserves.

dicated:

By ARTHUR B. WALLACE

/7-week period

to

28

that

/..'/..V.
of Bankers Trust are here in¬

loan totals drop.

as

sources

Fees, Com i;," -,v

(

May

will cut earnings

increasing

Bank and Insurance Stocks

the

during

the trend will now be reversed, but not to a degree
seriously. Now, volume of investments is

course,

that

•

.

(526)

of

3¥-'S of 1990
I

(Bond)

Bond)

Feb. Cash

April Cash

Financing

Financing
of 1963

3s of 1966
<

Bond)

(Note)

June

June Cash

-Refinancing-

Financing
3Vis of 1985

1 Vis of 1959

(Bond)

(Certif.)

(Bond)

3

June 15

June 15

June

2%s of 1965

Feb. 14

Feb. 14

Feb. 14

Feb. 28

April 15

9,770

3,854

1,727

1,484

3,971

1,133

1.815

7,384

100

100

100

100

100

100%

100

100

100-10

100-11

100-12

100-19

100-15

100-10

100-12

100-13

100-20

101-26

100-18

101-

103-

issue

(in millions of $)
Offering price
Closing bid prices:
1st day of whenissued trading.

101-

2

1st

NATIONAL

BANK

OVERSEAS

GRINDLAYS

and

AND

BANK LIMITED

Almalgamating National Bank of India Ltd.
ami

INSURANCE
STOCKS

Grindlays Bank Ltd.
Head Office:

•

26 BISHOPSGATE, LONDON, E.C2
London Branches:

13 ST. JAMES'S SQUARE,

Laird, Bisseil & Meeds
Members New York Stock

Exchange

Members American

Exchange

Stock

120 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
BeVl

Teletype~-NY 1-1248-49

Specialists in Bank Stocks




S.W.1
54 PARLIAMENT STREET, S.W. 1
Bankers

to the

Government in: ADEN, KENYA,

UGANDA, ZANZIBAR A SOMALLLAND PROTECTORATE
Branches in:

MDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,

day of regu¬
lar trading
May 29, 1958___
June
6, 1958___
June 13, 1958
June 20,

1958___

June 27,

3

101-

3

101-

1

100-28

.

100-21

100-18

100-11

100-11

1

**100-12

**100-12

106-10

102-26

101-10

103-10

106-

103-

101-15

**101-

102-30

105-27

102-9

104-

6

2

102-

100-

9

101-10

**100-30

190-10

6

,100-23

100- 8

100- 7

99-22

100- 4

99-18

100-

99-16

102-28

8

1958

100-26

101-30

103-28

101-21

100-13

99-30

3, 1958
11, 1958

100-24

101-25

103-22

101-14

100-3

:99-24

100-21

101-13

102-16

100-28

99-30

99-10

99-30

99-

17, 1958
July 18, 1958
July 25, 1958
High price*

100-20

100-26

100-10

99-30

99-14

97-16

99-27

98-

-

100-20

100-26

100-10

99-28

99-16

97-14

99-27

98-

-

100-26

100-14

103-22

107-

July
July
July

Date recorded
Low

100-21
101-

April

price*

100-

6

:

7

April 21

8

100-

•?

Date recorded

ADEN, SOMALILAND PROTECTORATE,

8

,

100-

103-24

April 18

April 21

99-28

99-24

July 18

July 18

8

99-26

97-22

99-29

,98-11

101-19

100-14

100-14

99-14

July 17

NORTHERN AND SOUTHERN RHODESIA.

"Approx.

prices

based

on

BTCo

trading.

""Recorded

during

7

101-17

April.18
.

.

2

ivhen-issued trading.

t;. i't

97-

July 18

if

99-27

98-

-

July 17-18 July 17-13

Volume

188

5766

Number

.

.

The Commercial and, Financial Chronicle

.

confined to the

(527)

"short end of the outstanding issues of comparable
practice, however,>, maturity to those being offered
day-to-day operations have been for exchange." The support pro-

has been

limited

the

market/'

In

to

Treasury
only two exceptions;

with yided to the. July financing was on
;
a massive scale. In a matter of

bills,

'

cnly + few; days, the Federal ^ReReserve, at the request of the serve purchased, on a when-issued
Treasury, purchasedi about $200 basis, $1.U billion of the 1 % /o
million certificates then being of- certificates and a small amount of
fered, in an attempt to reduce maturing issues,
attrition. Also, early in 1957
the+j These; purchases, huge as they
In

November

Federal

1955,. the Federal

Reserve

There

is little

doubt

and

year,

mammoth

that

there

that

throughout

this

reached

proportions at the time

of the June

financing,

evidenced

as

by the fact that loans to brokers
dealers

and

curities

se-

to close to $iy2
speculators in
obligations obtained

Moreover,

Government

large

Government

on

surged

billion.

amounts

of

credit

through

sold/certificates were, did not ensure the success
notes, evidently because its of the July financing. Of the $9 repurchase agreements with nonsources
on
little
or
no
holdings of Treasuryf-mills had billion; of maturing issues held' bank
been depleted as the .result of its- outside the Federal Reserve and margin.
Spurred
by
the
gains
and'

then

the Treasury-investment accounts,
J ■' some $2.8 billion, or about 30%,
1953'<'policy lim- were turned in for cash, and the

policy of/credit
stralint-y'ry)y;
current

f Although1 the
itect

iiiarket

open

short-term

attriiion

tb

operations

securities/. ;.a

statement noted,

re-

higher

further

,

would

had. it

chases.

operations ;concerned ; \vith;.;ncorA

U The.relation

been

been

not

even-

for

the

1953

of the Federal Re-

,

had

provided

that

open

problem.*;,. If*

market
conditions
market operations should have in
again deteriorate to the point of
mind "maintaining orderly condiendangering a Treasury financing
tions

in

the

market."
This

Government security

/

.C / ;
emphasis

.

shift;

in

well

as; the

practice

transactions
the

the

to

market, reflected

part

of

market

the

.

System

forces

pattern

a

of

to

of

desire

on

the

various

on

maturities of Government obligations. The Federal Reserve objective'
of

was

to determine the amount

be provided

reserves to

market
of

the basis of its

on

the

credit

and

the

to

analysis

business

situa-

tion, and to allow the pattern of
yields to be established in the
market

place.

Market

Committee noted

that

"it

In

is not

fact,

the

the

now

policy of

It seems fair to conclude, there-

fore, that the

change in practice
reflected the judgment that conditions in the Government securimarket

had

indeed,, become-

disorderly," and that operations
maturities longer than Treasury
bills were essential. Thus, recent

in

actions

Federal

s

consistent

are

Reserve's

with

,

the

policy

down in 1853..

.

laid

The recent

—

support of

Treasury financing by the Federal
Reserve, however, ran counter to
another policy
adopted in 1953,
which
calls, for the System to
; "refrain during a period of Treasury financing from purchasing (1)
any maturing issues for which an
exchange is. being offered,
(2)
,

when

issued

securities,

future

facili-

and

(3)

the banks

reserves to

in the past,

as

the Federal

Reserve will

probably try to avoid
responsibility
for
establishing
artificially easy conditions in the
credit markets

just to enable the
Treasury to .borrow at rates lower
than otherwise would prevail, and
will

also

try

bility. for

to

avoid

setting the

response

pattern

Provision

or

part of June

that

Assessing the Future

'

Thesuspension of the "bills
only" practice and the massive
direct

support

of

the

Treasury

refinancing brought the decline in
the marketfto a temporary halt;
However,
during
the
past
few
days, spiling; pressure has again
mounted and' the underlying tone
„

jn the market continues to be
of widespread uneasiness. In

developments
while

in

one

short,
weeks,

recent

significant, have done little

to clear the

atmosphere

visibility

prove

as

or

to im-

to the outlook

policy

interest

and

fates.
Technical Position of the Market
—One major imponderable con.

tinues

to

be/great uncertainty

as

to the amount of securities still in
the hands of speculators and other

temporary holders. Persistent selljng in the past few days confirms
the fact
that' large numbers of
these holders are continuing their
efforts to unload.

TABLE II

Provision ( +)

■*.

>

or

..

.a.—Amounts Outstanding—

Routine factors:

May *8, 195H

Float-

r

.21,643.

_____

Money-in circulation.

__

J.

•' '

'

:

Treasury currency
Treasury cash
Treasury deposits

___/

of Reserves

1,052
21,283

—360

31,280

—318

+408

..

.

5,201

.....

." T.

5,202

+

1

715;.;.

693

+

22

382

418

—

36

n.

Subtotal

—

Nonmember deposits.
-

-

Other Federal Res. accounts..

*

677

„

995

'

Total
'

711

—

34

—

98

tutions
have

/ +

U.

S. Government

still

Gov-

of

were

ercnts

■

securities..

24,063

taken

,

.,

of

weeks

recent

the *1959
Cross

to

wishes to

or

this

immediate

Funds.

policy

to

Roland

H

arriman,

Chairman of

task,

the

on

markets.

Efforts

to

shorten

their

securities

market

for

some

time to come.

Recent

already had an imthe Treasury's decisions

stock

necessary to
offer
in
July

tificates and to

to

one-year

cer-

continuing strength in the
is suggestive of a

market

resurgence

of

chology and

inflationary

business

of which

whetted

by

seem

the

psy-

confidence,

to have

crisis

been

in

the

Middle East,

lsaac B.

^

ger takes over

W^"1UU"

^

^er

Cross campaign post from
r£uc*us Pv£yi Chairman

^

r

a*™ ^

n

?

^

®

p

fw

nio

P
^ neral Clay has - VOlunteered to assist Mr. Grainger as
Deputy National Chairman of this
,

year's drive.

r
•

/

_

.

Southwestern IBA

Group to Hold Outing
KANSAS

be

CITY,

Southwestern

vestment

Mo; —The

Group- of

uuiiiyuo
Bankers

the

In¬

Association

wUl"have""their

America

of

annual

outing Thursday ana Friday, Oct.
2nd
and
3rd, at
the Oakwood'
Golf

„

,

,

.

&
Country Club, Kansas
City, Mo. Cocktails and lunch at
Eddy's Thursday and dinner that
evening. Golf and other activities*

,

„

Admittedly,
troubled

and

situation

and

still

are

we

uncertain
it

would

in

a

market

Friday.

on

*

certainly

that, for be imprudent to take a dogmatic
time being, its cash financing
position on the outlook. On bal-

would

Grainger

the top volun-

+

Outlook for Interest Rates

debt management.

example, the Treasury found
limit its exchange

it

the

—

have

on

and the

both

Debt Management

For

Mr. Grain*

a

holdings promise to be a further
unsettling factor in the Government

Red

Cross.

caution in providing reserves than

modity prices have firmed; subcapital gain. There is stantial additions have been made
evidence that many of them are to the
liquidity of the banking
now
reappraising their portfolio system and the economy in genpositions
in
the
light
of
the eral; bank deposits have been rischanged environment in the credit ing very sharply for some months;

realizing

American

National

the

securities in the hope of

by

E.

credit

signs of recuperating from the
1957-58 recession; sensitive com-

made

was

objec-

adjust

and
The

announcement

assume

Reserve's

for

Members

responsibility for setting the pattern of yields in the market,
Beyond

Red

Cam +

paign

support the conclusion that the
Federal Reserve desires to engage
in support operations on a con-

tinuing basis

°

Chairman of

Certainly/there is nothing in the
experience

.

National

teer

basic change
Reserve
thinking,

Federal

-■

..

,

announce

confined

to

short-term

however,

American Stock Exch.

discussed above,
array of arguments
can
be advanced to* support
the
The member of the American
$3.5
billion
of tax
anticipation point of view that a significant
certificates due in March, 1959.
Exchange have- voted to
rise in prices in the government Stock
issues. The August cash financing
is
being limited to the sale of

ance,
a

as

Now Commission Rates

formidable

.

is

It

obvious

that the Treasury

will have to confine its financing
to issues of fairly short maturity
until

the

in

tone

the

market im-

proves
importantly. The current
financing is expected to cover the
Treasury's cash needs until October, thus giving a much-needed
period
of
two
months
during

securities
market
is
unlikely,
Furthermore, in the past, a cyclical rise in business activity has
usually
been
accompanied* by
firming interest rates. Recollection of interest rate movements in
1955-57 may very well hasten the
upward adjustment this time,
Unquestionably,

the

price

cor-

which it is hoped the market will

rectlons in the government securirecuperate. However, in the final ties markets in recent weeks have
quarter of the year the Treasury been of major proportions, espewill have to raise $6 to $7 billion, daily in the case of the longer
or more, of new money, as well as
maturities. However, aside from
refund $12.3 billion of outstanding some probable technical readjustmaturities.
ments in the market, about the
it necessary to ease up appreciably in its efforts to extend
the maturity of the Federal debt,

only factor in the current economic scene that gives any prospoet of working importantly in
the direction of lower bond yields

This

is

seems

that the Treasury will

that

means

the

available

supply of fairly short-term Treasury obligations will rise substantially in the last few months of
the year. The extent to which this
will put upward
pressure
upon
short-term
yields
will
depepd
upon the reserve position of the
nAmmorcioi
Koniro
of
fh#»
timp
commercial
banks
at
the
time,
since there is no doubt that they
will be called upon to provide

prolonged subsidence

a

in

the

adopt

a

schedule of commis¬

new

sions.

The.
with

the

on

briji?.s

,

in: line

The

the

im effect

now

York

New

change.
plifies

those

Stock

formula

new

Ex¬

sim¬

present, non-member

rate structure and, for the first
time, applies the 'money involved'

1

+ ,a.i
0iLation

^

or<f«nam'now
Pth£ Iflw Yorir
sto^ExchrnEewasalfoTdoptei
®
bccom? ef.
.

,

tri

on

...

A

9fi

1Qko

fectlve 011 Aug* 2b' 1958*
New Coast Exch. Member
George

W.

the

of

man

pacjfjc

0£

Davis,
Board

Coast

Vice-cLair-

of

Governors

Stock

Exchange,

demands for long-term funds, j^as announced, the election of
which, until very recently, have Charles C. Samuels, a general
been running at surprisingly high partner 0f Charles C. Samuels &
levels. Only if demands for long- Go
membership in the Faterm funds are smaller and the cificCoast Stock Exchange through
upturn in business is more slug- the San Francisco Division,
gish than generally expected, is
jyj;r
Samuels will
confine* his
thp lnnff-tprm market likelv to rethe
long-term market likely to re
activities as a professional Trader
^

gain much of the

ground

it has

lost in the past two months,

the Floor of the Exchange, an<F

on

not do any

public business.

in its financing operations.

the

in

trouble

the

With Paine, Webber

result of

Government

Bache in Garment Dist.

(Special to The Financial Chronicle)

The

MINNEAPOLIS, Minn.—Robert

investment

firm* of

Bache

& Co., 40 Wall Street, members

of

.

serve

-•■+

June

since

has

literally J. McDonald is

now

affiliated with

the

New

York

Stock

;

„

; 25,315

-

corporations
longer term Gov-

securities market, the Federal Re-

;

WASHINGTON, D. C.—Isaac B.
~

Grainger, Pi esident of the Chemica* Corn Exchange Bank of New
York city- has been named volun-

a

over-

business

Credit Policy—As the

—415

"

and

ernment

ury

-

-

course

by the

and do not reflect

that

only"

interven-

the Julv refinancing

dictated
in

"bills

direct

substantial assistance to the Treas-

13

1,093

.

....

Open market operations:
Repurchases

(—).

May 28-JuIy 16

'r

;;

use

July 1<>, 1958

30,962 .•>.+

Treasury operations:

-

r,

'644.,:

Goldi stock

are

of

find

..,

Use of Reserves by Major Factors,

\
'•

amounts

securities

ernment

with regard to

(In millions of dollars);

-

that the down-

was

substantial

pact

/■"
,

*

.

from

massive

changing needs of
the economy, While a
departure
persist. While the volume of bank from an
essentially easy credit
loans to finance Government sepolicy may not be imminent, irncurities has been pared by roughly
portant
economic
developments
two-thirds, it seems a fair guess underline the need for greater

events

May 28, 1958 to July 16, 1958

t

the

ward trend of interest rates would

It

;;i,...r>,+,

temptation

departure

and

tion in

conclusion

our

the

offered by the easy availability of

of

rates in the market,

for / credit

,.

jDiirect Support of Treasury Financiug

to

help them "underwrite" new
Treasury issues.. However, in the

Open

Government securities market."

ties

continue

to

in: 1953

the Committee to support
any pattern, of prices and yields in the

v

by providing

allow

establish

yields

speculators

the

reflects

serve

Grainger
Red Cross

Named by

term objective of the Federal Re-

doubtless

will

Isaac

near-

to

end

to

.

the

resist

to the

as

.

of limiting tate and assist Treasury financing

short

not

This observation

as

from

maintaining orderly markets
correcting disorderly markets,

money

was the case even before the reoperation, .the ' Federal
Reserve
hanging the market.
cent trouble in the
may
be .expected
to ' intervene
government
In addition
to
these
outright securities market: the economy
directly, as it did recently. Bebeen
disnlavinf?
mnnnting
yond ; this, the Federal'5 Reserve speculators, many financial insti- has
displaying
mounting

'

;

.

firming of

;;

;

disorderly situation: in serve to: Treasury financing opthe; Government securities mar- erations,; of course, is and will
ket/' The policy in effect prior to continue • to ;
be
a
troublesome
a

declining,

was

some

support pur- funds, especially when the gen- tive, the Federal
erally held expectation in the first as always,
is to
,1

federal. Reserve's

th^t this restric-

tion did not apply to open market

recting

have

realized earlier in the year, when
the general level of interest rates
could

tribute to

speculative interest in urates.

a

Government securities

31

the

flooded

+1,252

money

VN

market
11__

with paine, Webber. Jackson & Curtis,
7

1

7

Exchange;

announced that it' will mark its
•

1

A.

_

X"L_

.

■

Acceptances

41

:

Total..

Member* bank

-

•

■;

435

requirements

of

+775

17,981

T

830

+380
+395

reserves:

into

put

•

the

plethora of reserves Fenner & Smith in Denver,
market by recent
Support operations. Since the next
ixr'.i
c
c
L
11Treasury financing is not expected
VV lth r USZ ocnmeiZie
until October, the Federal Reserve
(Special to the financial chronicle)
may
have
greater freedom
of
ST. LOUIS, Mo. — Harold E.
some

17,601

Reserve

—59
<

Required

*'

1

+1,251

114

18,036 -■•*-• 18.811

excess

—

"

-

Total

Excess

-

40

25,355

173 :

reserves:

Summary of factors affecting
-

-

24,104

borrowings*

Member bank

*

*

the

...

Other required reserves.....

—380

...

action

than

it

has

enjoyed

for Shively

is

now

with

Fusz-

*

Open market operations
,

-

Routine

factors

+1,251
.

'..-.1

—415

*
■

Borrowings

/•Including,

non member

.

faorrov ings.




_—

some

time.

Lightening

of

the

Schmelzle & Co., Inc., Boatmen's

System's portfolio, either through

Bank

sales

New

59
run

or

by letting Treasury bills

Building,
York

off, may be expected to con- Exchanges,

and

members

of

Stock

Midwest
•

the

-

Broadway. Situated on the ground
floor at 38th Street and Broadway,
the new branch will be* Bache's
sixth office in New York City.

William L. Burton II
William

L.

Burton

partner in William

co/'and
York

a

member

Stock

away on

L
of

II,

senior

Burtons &

the

Exchange*

Nfcw>

pas»d

July 27, at the age-of-Wt

The Commercial and Financial Chronicle
32

.

.

.

Thursday, August 7, 1958

(528)

Employment Act Amendments

Nourse Opposes

House Bill to amend the Employ¬
of 1946 is critical of proposed amendments. Prefers

posed, and bills of this character
might well be considered on their
individual merits.

Dr. Nourse's testimony on a
ment Act

Questions and Answers

"Rep. Fascell: Do I understand,
Doctor, that you would much pre¬
fer to do this by direct legislation
which does not have anything to

if it is to be pursued by
legislation so that the Em¬
ployment Act remains a general enabling act rather than one
replete with special interest encumbering amendments.
attacking the problem of inflation,

Congress, through supplementary

Railroads

do with this act?

ings of the Executive and Legis¬
lative Reorganization Subcommit¬
tee of the House Committee on
Government Operations held in
Washington, D. C., last July 21,

Dr. Nourse stated:
like

should

."I

comments

to preface my
H. R. 12785 by ob¬

on

serving that Representative Reuss,
as a member of the Joint Economic
a

at¬

tendant

and

from

cent
ojn

the Rela¬

tionship;-

Prices to Eco¬

policy in operation.

Stabil¬

ity and Growth
held

This

i 11

is that
the Council of Economic Advisers
Edwin

Nourae

G.

thus

has

the Reuss

in

examination

that

advanced

proposal

other

"The

ee.

the

in

"When

amendments

price and

proposed

shall

review

wage

increases so that the Presi¬
shall make tan appropriate

had

have

we

found,
laid

safeguarding

a

stated "there was, in so far as this case is, concerned,
necessity whatever for the expenditure of fantastically high
sums in publicizing this lawsuit."
The Court said it was satisfied
that the Truckers' Association had suffered single damages in the

damages were to be paid by the rails and
relations representative.
The

by

amendment within

the

on

the meaning of: tes¬

timony brought out at those hear¬

you
or

defendants

setting

the

^

'•» i.

counsel

$200,000

fees,

said

that

jointly

individually, restrained them from

and

con¬

to hinder the growth of they trucking industry or the
truckers' competition for long distance transportion of freight.
spiring

Court," Judge Clary stated, /"to frame a

"It is the duty of the

decree, which will suppress the unlawful practices found to exist
and to take such reasonable measures. as will preclude their

time

going to find out that price
before the President may decide
changes are pending? The
to
ask Congress
for legislation
ings. His proposed amendments of question of adequacy of informa¬
dealing with prices and wages or
the Employment Act are aimed at tion and timeliness of action, I
when the Congress will of its own
tWo specific sources of inflation¬ think, is a very serious practical
initiative decide to promulgate
in applying such an
ary danger—soft credit and wage- difficulty
;
"
amendment. And any attempt to such legislation?
price spiraling.

ponderings

in

Court

20% by their, public

^

lawyers for the truckers had spent 4,600 hours in preparation and
trial of the case.
Judge Clary's injunction against the railroad

the

this

the Federal

conspiracy in restraint of trade.
ruling of last October, Judge Clary said 80% of the

his

In

meas¬

to me it should be undertaken

These damages were trebled because the suit
antitrust laws and the. Court found that

$217,358.

under

the railroads were guilty of

made of the meaning of dent
way of supplemental legislation.
informed request for voluntary re¬
Employment Act of 1946. It
Simply putting, in such general
straint by the parties concerned.'
clearly revealed the nature of the
terms as those of these amend¬
dilemma of "full employment" vs. I see many practical difficulties ments will not change the practice.
inflation.
The bill
now
before in the carrying out of such a man¬
"Mr. Fascell:
That may be so.
date by the Council of Economic
your committee gives clear evi¬
Doctor, but what is wrong with
dence, I think,
of Mr. Reuss' Advisers. When — and how — are

far been

of

sum
was

12

should be passed, then it seems

ure

to

no

they become convinced that
danger of inflation, let us say,

the

was

The Judge

years,

is such that

decision, Judge Clary said the Association had sought
mostly for public relations, of 8866,482. This, the Court
excessive because many of the expenses could not be
activities undertaken to combat the alleged conspiracy.

In his

the

for

now

the Eastern

expenses,

their

of

thought

included

to be awarded the Association.

Advisers

Economic

perform under it according to
best lights.

which

the

was

in different ways in this re¬

of

defendants

The

gard. It seems to me it is better
to keep the Employment Act in
these general terms and let suc¬
cessive Presidents and successive
Councils

illegal conspiracy to drive them out of business.

an

Conference, the New York Central, Pennsylvania, Reading, New
York, New Haven & Hartford, Central Railroad of New Jersey
and the Baltimore & Ohio in addition to the public relations firm.
After a lengthy trial, the Court ruled in. favor of.thevtruckers
on Oct. 10 and at the same time dismissed the $120,000,000 'counlersuit brought by the railroads.
The recent decision awarded
the individual trucking companies nominal damages of 18 cents
each and held it would determine later the amount, of damages

and the .wisdom of the
Congress, under that procedure

Duties

Amended

CEA

most searching

Origi¬
nally the suit* was filed for $250,000,000 on Jan. 17,, 1953. It
alleged the railroads entered into, a conspiracy in restraint of
trade against the long-haul trucking industry in May, 1949;

"Different Presidents will oper¬
ate

repeating practice® the truckers had charged consti¬

from

tuted

country

that

by

comm

promptly

machinery that they have for
watching and keeping a flexible

£

o

ease

to active ease or from
to moderate stringency

according to the advice of a very
elaborate and competent technical

hearings

nomic

procedure is to have flexi¬

and make those changes

pant in the re¬

rails

covering such a change, make a price or wage appeal or
to me that a much refrain from such appeal.

ease

active

keen partici¬

by 24 Eastern railroads and their public relations agency. It is
expected that the railroads will appeal this decision.
The Court also issued a final injunction that prohibits the

for

seems

bility in the hands of the Federal
Reserve System, which can change

very

faithful

but it
better

Committee,
was

treble

Judge

the

awarded

year, and even if he were to make staffing him with a professional
a positive recommendation, let us
body for helping him to carry out
say, for credit ease or for credit that duty. He will have to inter¬
stringency at that time, circum¬ pret whether he will go so far as
stances might so change that a a specific recommendation in the
different recommendation would area where the Federal Reserve
soon thereafter be desirable.
He lias an active responsibility or
can, of course,
send up special whether he will refrain from it,
messages

Thomas J. Clary in Philadelphia recently
Pennsylvania Motor Truck Association $652,074 in
damages and $200,000 in counsel fees which must be paid

District

"Dr. Nourse: That is the essence
the Coun¬ is a distinctive feature of the Fed¬ of my position, Mr. Representa¬
cil
of
Economic
Advisers, Dr. eral Reserve System that its Board tive. It seems to me that the Act,
Edwin G. Nourse, recently testified of Governors is responsible to the as passed, although it is, of course,
and answered questions regarding Congress rather than the President. not perfect in its verbiage, is con¬
H. R. 12785, a bill amending the
"I would like to make one other sistent in defining a general role
Employment Act Of 1946.
point here: The Economic Report of economic leadership in the Ex¬
of
the President comes out once a ecutive Office of the President and
In his testimony at the Hear¬
Former Chairman of

Trucks

vs.

revival."

wage

'l

^

■

Continued from page

*

-r-

6

perform such a task would cer¬
as I have myself for
Wants No Special Interest
tainly require substantial additions
Amendments
been consistently out¬
to the Council's staff and expan¬
spoken about the danger of infla¬
"Dr. Nourse: I have referred to
sion of its funds."
i
tion due to misinterpretation of
putting specifics in the Employ¬
Furthermore, I am convinced
the Employment Act, I find myself
ment .Act
as
'encumbering the
ufacturers ; know
that such enlargement in the du¬
perfectly." well
heartily; in agreement willi the
Act.' /This,'would make
a
fine1
what they would do if ,lhey:;had
avowed purpose of this bill: But ties of the, Council would impairprccedept! for,. sbhfeohe£ to comeinore money, to-'sjperid, oq j pkuit.
when I come to consider the, mp- that agency's usefulness. Any at¬ forward
and, instead of saying 'ihjand-- equipment */V1
dus'operandi of the proposed-, tempt at. ascertaining What was
cluding inoitetary and credit poli-:
amendments, my reaction becomes1, going to happen and in what: mag-: cics'
say 'including /also policies.
•££'.
r'?
nitude
and
in
what
manner
and.
adverse.
I do not believe1 they,
designed to remo ve the disabilities
.While
"the
contain promise of securing better by what company or by what un¬
of small 'business' or 'including/
policy leadership from the Execu-'. ion, and so forth—any attempt to also problems which would be of ministration, and particularly the
live Branch toward the end of perform- such a task would con¬
Treasury, over decreased / reyespecial .benefit to farmers.' That.
national stability and growth. At siderably
alter the role of the
nues, ; is not - as great, as ;it has.
is what I refer to as special inter¬
been in the past, it is still an
the same time, I fear that opening Council in advising the President,
"Inasmuch

eomq years,

What It Is and What It Does

.

v

,

A."-- C'-V'p. v-/'.

•

V--; ./;-r:V ■•'.'/

-•

expansion.

y/As

'

V

w^ ali kndw, the general

•

question of insufficieiit depreciation
ii n ot uieW;: I^rniissi.qri to use the
/1 He

siiWi~bi-the digits method given in

.

the act for amendment at this time

the

would

tive Branch.

lead

to

parte

ex

attacks

seviral of its fundamental fea¬

on

tures and might end in discredit¬

ing its basic purpose

weakening

or

its operation.

Money and Credit Amendments
"The Reuss amendments would
make

only

two

additions

to

the

presept text of the Employment
Act.

One calls lor insertion of the

clause

credit

'including
policies'

monetary

at

four

places

the- specifications laid down
the

scope

and

and

character

as

of

Cabinet, and the whole Execu¬

the policing
"At

of

the

public

time, the essence
of this proposal is already em¬
braced in the practice of the Pres¬
ident and Council.
When impor¬
tant

price and wage issues arise in
of great strategic importance

areas

(coal and steel, for instance), their
contribution to inflationary danger
is bound to come to light in the
analyses

in
to

The advisers have

to

call

such

the

Council.

never

hesitated

of

tention

has not hesitated to

Economic
seems

to

Advisers.
me

to be

fluous, inasmuch
on

the

Council

This

entirely

as no

of

ence,

vate

the situation and needs of the

.economy and no study program by

professional advisory staff such
the Council could conceivably
fail to deal with monetary and
credit policies.
Every Economic
Keporl since January, 1947 has
a

as

dealt with the policies and most,
If not all of them, have warned
of

the

Prefer

"If

the

President
use

Supplemental

this

problem
pressed

to

line

of

of

those issues out.

and

is

the

Em¬

general

ena¬

We have legisla¬

and I suggest

here in the last part of my state¬
ment that a new measure within
that

area
of administering price
making might be so drawn as to

have

hortatory

efficacy than the purely
means here proposed,

and

bills

more

that

of

this

character

might well be considered
individual

on

their

merits."

R. S. Weil

on

to

the
be

strongly in the fu¬
ture, I believe it should be through
supplementary legislation, not
through amendments encumbering
more

Opens

Weil is conducting a

business

from

offices

at

securities
734

Fif¬

of Albert G.

PACOIMA, Calif. —Richard A.

from time to time been advanced.

Ramm & Co. has opened a branch

Such

office

eral Congressional

committees. It




might be so drawn
as to have more efficacy than the
purely hortatory means here pro¬
measure

allowance

amount of the

on

the

spending
equip m

on

e n

A.

Paton

of

the

aca¬

University

of

Michigan and the Rev. William T.

this

method

would

generate

J., of Fordham Uni¬
versity, testified on the problem
and on specific methods to correct

if
it

effective

Invited witnesses from the

demic world, notably Dr. William

ma¬

chinery and equipment.

Hogan,

machinery and
which would not

t

S.

the situation.
nesses

Both

of these wit¬

advocated reinvestment de¬

otherwise have taken place.

difficult to calculate the effect of

which

taxes

Ramm

der

at

the

Opens Branch

9466

Obeck Avenue

direction

Panaccione.

of

Thomas

not devised

but there is

as

no

would

paid

depreciation
a

not

at all.
was

recession remedy,

doubt that it would

vocated reinvestment depreciation,
and

as

such

tion

of

cause,

through the stimula¬

activity

and

which

might

well

it
be

would
more

Mr.

Joel Barlow of the firm

of Covington &

vocated

a

Burling, who ad¬
shortening of
of discre¬
the taxpayer.
A

drastic

lives with a wide range
tion

act

un¬

E.

been

have

Reinvestment

posals for advance notice and the

a

of

spending

the

require

otherwise

interposition of delay periods have

lacking in vigor,

because, if reinvestment deprecia¬
tion was effective at all, it would

income

Harper.

credit policies of the President are
or

of

Representatives

this increased activity, but

the Employment Act. Several pro¬

Ill-conceived

Means Committee of the House

It is preciation. Representatives of the
accounting
profession
testified.
the
$2 Leonard Spacek of Arthur Ander¬
teenth Street, N. W.
to $3 billion or perhaps more of sen & Co. advocated full currentplant and equipment which would value depreciation and revalua¬
Geo. K. Baum Branch
be purchased under this method tion of assets. I testified in favor
would certainly go far to gener¬ of reinvestment depreciation. The
TOPEKA, Kans. — George K.
Baum & Co. has opened a branch ate, through manufacturing prof¬ legal profession was represented
wages,
profits on material by Mr. Fred W. Peel of the firm
office in the First National Bank its,
Building under the management purchased, and profits on services, of Alvord & Alvord, who also ad¬
S.

dangers of inflation. If it
appears
that the monetary and

the remedy lies in your own hands,
under the lead of any one of sev¬

shbi't^iived^property^^yHowever;
tlie testimony before the Ways and

in January and
February of this year. was the
by manufacturers electing to use greatest expression of interest in
reinvestment
depreciation,
per¬ this problem and of concern over
haps $1 billion to $1V2 billion per the probable results of disregard¬
year,
would not have anything ing it which we have yet seen.
like that impact on the total tax
Expert Witnesses
revenue, even for the short run,

Furthermore,

WASHINGTON, D. C.—Richard

Reinvestment

depreciation, while it would re¬
duce substantially the taxes paid

were

he

Legislation

inflation

that

a

tion in those areas,

his influ¬

attack

me

as

the at¬

through either public or pri¬
channels, to press for 'vol¬
untary restraint by the interested
parties.'

clause
super¬

state paper

of

to

situations

Economic Report of the President
of

seems

ployment Act

bling act is not the place to spell

of private action.

-and-the

duties

to

same

regular

the

policy

factor.

important
"It

It would turn it from

issues

broad

est amendments.

given

number

of

associations

to

industries
were

and

trade

represented. Mr.

George Terborgh of the Machinery

Volume

Number

183

5766

.

.

The Commercial and Financial Chronicle

.

(529)

33
4#

and

Products

Allied

Institute

when

described the problem and recom¬
mended the allowance of deprecia¬

takes

tion

current

on

•representatives

values.

of

several

other

Among these

retired

in

cost

the

in

which

industries advocated reinvestment

depreciation.

the

tween

The

retirement

the

of

property

erty,

place, of the difference be¬
value

of

current

it

the

power,

property tures must be made. Admittedly,
and its, income is overstated in the years

were:

dollars of the time in

intervening between the purchase
and
retirement of the property.
However, when the property is

was

retired and when the money must

Institute; the Association of off, will bring the total amount of be spent, the funds are available
American Railroads; the Lithog¬ depreciation
up
to the amount through the tax deduction.
raphers National Association; which should have been written
As the reinvestment deprecia¬
off
and the National Coal Association.
currently to compensate for* tion will be deducted from the
ers

The

Chamber

Unitedy States

advocated

Commerce

the

of

In my

testimony I used statistics
cement, the pulp and

the copper and brass and
the steel industries, all which have
tions

or

record either

of

companies
in favor of reinvestment deprecia¬
tion. ' ;v: v; / / 'I;./*'
The record of the hearings has
not

yet been printed and it is
quite likely that other references
to this problem will be found in
the testimony of other witnesses.

However, the statements
referred

show

to

testimony

that

was

the committee.
There

the

that

already

volume

of

presented

to

unani¬

date
of

time.

index

of

retirement.

the

'

The

reinvestment

de¬

that

increase

an

from

1938

may

elect

taxpayer

1958,

Assume

shows

130%

of

'/>■;/'• ^y/yAv'^vry

■

substantial

was

the

cost of the

machinery,

no re¬

them to reinvest.

<

on

lem and its serious

be

similar,

in

to

the

in

cost

costs

1958.,

The

to deduct

in

reinvestment deprecia¬
allowance, the cost of tangi¬
ble,
depreciable
property
pur¬
as a

tion

respects, to
those of the five-year amortiza¬
tion except that the application of

•

basis,

at pres¬
have the

as

ent

calculated, would
strong opposition of the Treasury,
which in all probability, would
prevent the enactment of any such
legislation.

The money market, with a period of time in which to digest
refunding and new money raising obligations of the Treasury,
should improve its technical position, because the Federal Re¬
serve Barjks most likely will lend
enough support to keep the bond
market orderly. Nonetheless, because of the fear of inflation, and
because of the monetary measures which were taken in the past
by the powers that be to combat it, and since these are still fresh
the

in the minds of most money market
specialists, there is not very
much enthusiasm around among investors for Government bonds.
This in spite of the announced intention of the Federal Reserve
Banks to keep

The

other
methods
proposed,
shortening of lives, and free
lives, as in Sweden, have
their merits but the principal ob¬
jection to these seems to be that
they do not require, as does the

Certificate Issue

for

the

additional

as

in

productive

prop¬

expected, and allotments in

59%

basis.

Taking everything into considera¬

tion, it is the opinion of many well
qualified
lawyers,
accountants
businessmen

and

vestment

hope

of

partial,
of

that

method
a

practical,

solution

the

offers

to

rein¬

the

perhaps

the

problem

years,
and

and

more

which

serious

as

issue,

the

for

new

The

Federal

Bank

Requirements Indicated

in

the past week did not lend
tangible support to the Government bond market, even
though the "bills only" policy has been modified, according to the
recent pronouncements of the powers that be.
Purchases had
been made of the refunding obligation in size and this added to
the funds that came into the money market. As an offset, Treas¬
ury bills were sold, but nonetheless the free reserves of the mem¬
ber

banks

still

being maintained at the $500,000,000 level,
enough, and indicates no change in the easy
money policy of the monetary authorities.
However, it is evident that the excess reserves of the system
are not evenly divided, since the smaller out-of-town banks have

which

the

is

were

ample

bulk of

the free

reserve

which

that

means

the

large

money

center institutions have very little in the way of surplus funds to
Because of this situation there is a strong opinion in

more

work with.

time goes on.

financial

district that the

requirements of the banks
York and Chicago will be
give them funds with which
to meet loan demands. A reduction in the reserve requirements of
the member banks in New York and Chicago would be a realistic
development and one which should have taken place a long time
in

Henry M. Wreszin

Central

the

reduced in the

Henry M. Wreszin passed

Reserve

much

the

New York

in this operation. is again expected to be a shortalthough the trend of the business pattern will no
on kind of security which will be used
money raising purpose.

Cut in Central Reserve Bank

so many

becomes

carry

doubt have some influence

insufficient depreciation which

has been plaguing us for

on a

the
early in October, at which time it is evi¬
will be in the market again in order to
replenish its supply of funds. The amount of money which! will be
borrowed in the early fall by the Treasury is not indicated at this
time, but opinions around are that'"1 it will not be an insignificant
undertaking. The type of obligation that will be offered by the

best

if

of $100,000 were made

excess

This money is expected to be sufficient to

Government along until
dent that the Treasury

away

Briefly, the method may give smaller depreciation allow¬ Aug. 2 at the age of 61. Mr. Wres¬
ances than what might be called a
zin was a member of the New
be described as being somewhat
Jull-fledged current-value depre¬
York Stock Exchange, and senior
similar to the application of LIFO
ciation
method, it will provide
to fixed assets. What is proposed funds for the maintenance of the partner of H. M. Wreszin & Co.,
investment

Treasury's offering of $3,500,000,000 of 1V2% tax antici¬
certificates for new money purposes was oversubscribed

pation

expen¬

allowance.

Oversubscription Expected

The

Government

method, the

:

in which the long-term Treas¬
growing tendancy among many

liquid Government obligations.

term

diture of current funds for depre¬
ciable property in order to qual¬

a

holders of these securities to transfer their funds into the shorter
more

ation."

is to permit the deduction, as and

'

issues have acted, there is

ury

choice of

ify

the Government bond market from getting out of

Because of the defensive way

the

reinvestment

Governments

on

hand again.

some

of more than the

Reporter

By JOHN T. CHIPPENDALE, JR.

The results of this method will

the statement of the prob¬
impact on the chased in 1958 to the extent that
economy. The only important dif¬ its cost exceeds
$50,000 (the orig-,
ferences in the testimony were in
inal, historical cost of the prop¬
the type of remedies suggested.
erty dismantled during the year)
Broadly, these might be divided but
does
not
exceed. $115,0001
into four,.groups. First, deprecia¬
(230% x $50,000). The maximum
tion to be calculated on the cur¬ deduction
taken to place the tax¬
rent walue of depreciable prop¬
payer on a current-cost basis in
erty; second, a drastic shortening this example is
$65,000, or the
of lives,-the lives to be selected
equivalent of the 130% cost in¬
at the discretion of the taxpayer,
crease.
:f
and not to exceed, say, 10 yearsAs
another example, -suppose
third, something like the present
that in the previous example new
Swedish system where the tax¬
investment is only $60,000 in 1958,
payer is allowed to choose prac¬
but
that
additional
investments
tically .any method he wishes,
amounting to $200,000 are made in
provided he adheres to it consis¬
1959.
In this case the taxpayer
tently; and fourth, what has come will take reinvestment
deprecia¬
to be known as reinvestment de¬
tion deductions of $10,000 in 1958
preciation.
...V/.-:,.-- ,•
and $55,000 in 1959, the total of
$65,000 of deductions for the two
Explains Proposal
years
being equal to the 130%
This was described fully in the
price index increase multiplied by
statements presented by the vari¬
the $50,000 original cost.
ous witnesses and is also explained
Those favoring the reinvestment
in detail in an article in the May
method believe that, while it will
issue
of <eThe Journal of
Tax¬
mity

new

depreciable basis of the new property acquired.
' • '
> V; ■ '
the reinvestment method will be
For example, suppose that in i
general, and the rigidity of a five1958 a taxpayer dismantles a ma¬
year write-off will be avoided. It
chine purchased in 1938 for $50,is almost certain that any method
000
and fully depreciated since
which provided for the recovery

.

,

of

would

preciation written off in the first
year would be deducted from the

individual

as

the

amount

associa¬

as

value

.

paper,

on

the

deduction

be
covery will take place in excess
only to the extent that < of basis as presently provided for.
an
equivalent
investment
was* The
advantage
will
consist
in
made in depreciable property atplacing in the hands of the tax¬
the time of or within two yearspayer funds at the time he needs

the

gone

in

This

allowed

shortening of useful lives...
from

decline

dollar.

drastic

a

Our

dollars

acquired. ; This
amount, added to the depreciation
on historical cost already written

the American Cotton Manufactur¬

measured
in
purchasing
at the time the expendi¬

Reserve

near

cities

reserve

of New

future in order to

ago.

Conditions Not Bullish for Interest Securities
In

spite of the breathing spell the money market will have in
the next two months from operations by the Treasury, there have

City.

110 indications yet that institutional investors are rushing in
loading up on the intermediate and long-term Government
obligations. To be sure, it is the expressed purpose of the Federal
Reserve Banks to maintain an orderly market in these securities,

been

Iligh Tax Rates

oil

and

True Income Caused by Insufficient Depreciation
Corporation
IndividualProprietor
(Married—No Children)

-

(Effect of

Corporation

which is taken to

Decreased Income)

On Federal Income Tax Basis:

Banks

Sales

$3,000,000

$3,000,000

—

-

$2,850,000

As

Cost of Goods Sold:

Inventory 1/1
-

.Manufacturing
-

:

500,000

expense

: ;

.

Less

$100,000
1,000,000
500,000

$100,000
1,000,000

.

Purchases

against

given

V'

1,600,000

inventory 12/31—

1,475,000

125,000

1,600,000
125,000

$100,000
1,000,000
500,000

125,000

the

this, there is the economic picture which must be
than passing consideration as far as the money market

bond

market

is

1,475,000

to

combat

such

condition.

a

This

action has

kind of

not

been

bearing obligations.

675,000

825,000

325,000

-

..

"

business experts to conclude that the recession has
not only reached a bottom, but the economy is on its way to much
improved conditions which could again, with time, bring about
another boom. Higher wages and high prices still persist and the
budget deficit of the Government is staggering. These forces
breed inflation, and higher money rates have been used in the past
many

bullish for fixed income
-

concerned.
<

lead

1,375.000
700,000

1,525,000
700,000

1,525,000
700,000

—

more

The action of the stock market and other economic indicators

1.600.000

1,475,000

1

Direct labor

and

mean a managed bond market with the Central
commitments from time to time in these issues.

making

*

Other Expenses:

,

•

•'..

'••••

:

;

-

•••

'

30,000

Selling expense
Adminis.

office expense—

and

Delivery expense
,

Depreciation

195,000

-

,

T

.

on

Net income

rv-

525,000
300,000
223,640

Net income before taxes.—
Federal taxes

.

240,000
60,000

income—i—.-

...

Tax rate

30,000
240,000
60,000
195,000

J. T. MacDonald

30,000
240,000

525,000

60,000
195,000

income -is

amount

is

overstated

based

on

as

300,000
156,000

$76,360

$144,000

74.55%

"52.00%

150,000
78,000

offices

cost—not

76

&

Beaver

has

Jr.,
Co.

with

Street, New

York City, to engage in a securi¬
ties business. Mr. MacDonald was

$72,000 formerly
52.00%

MacDonald,

MacDonald
at

resident Vice-President

— estimated
0.40).

$300,000

$150,000

he

was

to be 40% or

($195,000

x

True income before taxes

Federal taxes
True net loss

on

income—as above

,

LOS

ANGELES, Cal.—David Y.
202
South
San
Pedro
Street, is now conducting his in¬

78.000
222,000
223,640

78,000
222,000

156,000

78,000

72,000
78,000

name

of

Diamond

Securities

Co.

True tax rate on true income




70.27%

a

securities
John

are

J.

Bruno, President; Joseph S.Lench-

Vice-President
Norman

and

and
C.

Mr. Lenchner

Secretary.

Treas¬

Eisenstat,
for¬

was

merly manager of the local office
of

McLaughlin, Cryan & Co. with

which Mr.

stat

were

Bruno and Mr.

Eisen¬

also associated.

With J. Clayton Flax
SPRINGFIELD, Mass.
Meadows

is

now

—

Merrill

affiliated

with

MANSFIELD, Ohio—Clay Her- J. Clayton Flax & Co., 1562 Main
He
was
formerly with
rick is now with Central States Street.
I

$66,000

100.74%

in

Officers

(Special to The Financial Chronicle)

With Central States
(Special to The Financial Chronicle)

True net income—

engage

vestment business under the firm

$6,000

$1,640

to

business.

urer;

Nitake,

Understatement of depreciation

Hotel

ner,

Inc.
Prior thereto
with Reynolds & Co.

Forms Diamond Securities
$300,000

with offices in the Penn-Sheraton

in New York for American Funds

current dollars.

Income before taxes—as above

PITTSBURGH, Pa. — BrunoLenchner, Inc., has been formed

Distributors,

depreciation

historical

T.

formed

■

Above

John

525,000

Bruno-Lenchner Opens

Opens

Own Investment Firm

108.33%

Investment Co.,

Walpark Building.

Shearson.

Hammill & Co.

,

34

The Commercial and Financial Chronicle

(530)

Continued

Fridley & Frederking

jrom

States

Departments iof Commerce and Labor, was a gain of more
$200,000,000 from (he $4,400,000,000 in June and topped the
'$4,500,000,000 figure -for July,
than

New Firm Name

Steel

HOUSTON, Tex.—Earl G. Frid¬

Frederking

H.

Wilbur

and

ley

have announced that the name of

and

stock

their
-

has

firm

bond

changed to Fridley & Freder-

been

employment costs rose more than 26 cents an hour, including a
cost-of-living wage boost.

"This evidence, and more, will be put into the record of con¬
gressional hearings on the steel price hike. The mills anticipated
that such hearings might be held and are prepared to defend ;
their action.. They are in no mood to be pushed around," The
"Iron Age" observed.
~
It speculated that the perennial furor over steel wage hikes-"
steel price boosts may have a good long-run effect.
When steel;
labor contracts are reopened next year, the steel companies will
be no pushover for Dave McDonald's United Steelworkers. They
will fight for a settlement that will preclude any need for higherr
prices and the chances are good that the battle will wind up in a
strike.

"In
that

would

steel

least

at

companies

enable

king,
of

a

as

Hess &
the

W. t reaermng

rriuicy

Frederking.
will

firm

conducted

continue

617

at

with

to

be

National

Texas

Bank (Building,
>

to Fridley,
The business

successor

the

same

employees.
Mr.

Fridley has been identified

tywith corporate securities, local and
i listed
stocks,
for
25
years
in

Houston, and prior to the forma:

tion

the

of

firm

present

its

and

predecessors, Mr. Fridley was the
proprietor of Earl G. Fridley Co.
He

has

been

also

Houston with

associated

New

a

York

in

Stock

Exchange firm and with a promi¬
specialist in local securities.
Mr. Fridley is currently Chairman
nent

of the Investment

Bankers

Asso¬

ciation of

America, Texas Group,

and

past

is

a

Chairman -of

the

National Association of Securities
Dealers.
Mr.

Frederking
in

partner

municipal

has been the
of the firm's

charge

department

and

has

for

many

been

In

He
past member and Vice-Chair¬
of the

the

Board

Municipal

of

Trustees of

Advisory

Council

of Texas.

the

hold

hard

for
labor

their

costs

119,323 automobiles

were

20,833.

was

,

,

statistical

added

Halsey, Stuart Group
Offers Equip. Tr. Glfs.

The

will

Halsey,
associates

Stuart

Co.

&

Inc.

and

issue

an

neapolis

The

&

of $2,100,000

St.

Louis

certificates

yield - from

2.75%

,

4.25%, ac¬
Issuance and

sale of the certificates

authorization of

are

the

subject

Interstate

Commerce Commission.
-

,

The

issue

is

to

14 Diesel-Electric

be

secured

by

locomotives,

es¬

in

the

offering

2,368,359 units against

& Co.

.

CL A. Saxton Wire

to

Glore Forgan'•/

£

new car

Consumers
fifth

reduced

consecutive

their

month,

Federal

the

Reserve

Board

A. Saxton & .Co., Inc., 52 Wall
Street, New York City, has opened
a direct wire to
Glore, Forgan &
Co., Chicago.

stalled

a

direct

wire

to

Wm.

H.

Tegtmeyer & Co., .Chicago.

Dorsey Brown

Dorsey

Brown, head of J.
Dorsey Brown & Co., Baltimore,
Md., and a member of the Phila¬
delphia-Baltimore s. E., passed
away on July 31.




to-

add

good-are railroads and non-electrical machinery;"
stepping up production
and buying more steel. Caterpillar Tractor Co. will rehire about
1,000 workers at its plants at Peoria, Decatur and Joliet, 111., this
month. Clark Equipment Co,, Buchanan, Mich., says sales of its
construction equipment are the highest in five years.
Steel district rates-last Week were as followst St. Louis at 90%.
capacity, down five points from the previous week; Wheeling
73.5, up 2.5 points; Western* district 69, up two poirlts;"Easterii
district 65, up two points;' Detroit 64,- up three points; Chicago

of

1.5 points; Cleveland 54, up 4.5 points; Youngstown 53,
point; Birmingham 52/ down 1.5 points; Pittsburgh 515,
up 2.5 points; Buffalo 50, up 6 points, and Cincinnati at 41, up'
1.5 points.
i
;
"Steel's" scrap price composite last week rose to $40.33 a
gross ton, up $2.66.
"
up

up

one

t

The

American

Iron

and

Steel

Institute

announced that

the

operating rate of steel companies will average *100.3 % *>f steel
capacity for the
week
beginning Aug. 4, 1958, equivalent to
1,611,000 tons of ingot and steel castings
ly

production

1947-49)

for

(based

on

with

an

compared

as

*97.2% of capacity, and 1,561,000 tons

a

week

week¬

average

actual

rate

of

ago.

Output for the week beginning Aug. 4, 1958 is equal to about

59.7%

of the utilization of the Jan. 1, 1958 annual capacity of
140,742,570 net tons compared with actual production of 57.8% the,
;

week

before.

the

"a;:;

"

-

like

week

1,442,000 tons.

a

month ago the rate

A

year

placed at 2,043,000 tons,

was

ago,

or

was *89.8% and pro¬
thea ctual weekly production

*127.2%.

'

currently
-Index

Outstanding instalment credit on a seasonally-adjusted basis
$127,000,000 during the month to a level of .about $33,000,000,000 on June 30, the agency noted. The drop was about the
same as in April and
May, but smaller than the adjusted declines
in February and
"..
March, the board said.

for

of

production is

based

on

average

weekly

production'

1947-1949.

Total

consumer

credit also

declined in June, by

Electric Output Rose for the Fifth
The

.

$226,000,000,

adjusted total of slightly over $43,000,000,000.
Nearly all the decline in outstanding consumer

an

debt

was

short of

attributable

car

loans that

to

drop

a

were

in

new

auto

„,

instalment

to

repaid during the month.

$3,392,000,000,

total

some $40,000,000 more than in May,
The
exceeded the $3,339,000,000 in repayments in

also

1957.

/

"

-

;

For

adjusted

an

level of

At

$43,100,000,000 at the end

tors,
The

$25,300,000,000, manufacturers'

end

•date

new

orders

rose

the

prior month, after adjustment for
United States Department of Commerce

the

Car

a

-

ended

Period in 19 5 7

were

25,884

revenue

fac¬

cars, a

cars or

reports.

The

May and compared with $53,800,000,000
year ago.

Dollar value

seasonally

to

-

on

the comparable

~

decrease of 128,706

week, and

of

new

construction

government reported,

a

new

put in place in July
record for the month,

Automotive

cars, or

;

r

'.Try

1958, totaled (607,701

for

the

week

Factories

as

ended

f

'

Aug. %,
as

1958,

manufac¬

operations and headed into factory changeovers

models.

Last week's

85,519 .(revised)
tion

cor¬

:

•

Marked by Declines

production

turers wound up
new

-..j."

17.5% below the corresponding

according to "Ward's Automotive Reports," declined

on

;; ■

decrease of 42,105 cars, or 6.5% below The

a

car

rose

the

;■ ;

.

Close for Model Changeovers

....

$4,600,000,000,

:

■

4.4% above the preceding week.

Automotive Output

was

•;

freight for the week ended July ,26, 1958,

Loadings for the week ended July 26,
1957

;

Loadings in Latest Week Increased 4.4% Above the
Preceding Week But Were 17.5% Under Like
1
'■)
Loadings of

slightly in

seasonal

attributed entirely to an increase in durable goods.
adjusted book value of manufacturers' inventories at the
of June fell to $50,300,000,000 from
$50,900,000,000 at the

end of

the week

responding week in 1956

from

Straight Week

energy

000,000 kwh. above that of the week ended Aug. 4, 1956.;

June
June,

of June.

June

electric

Aug. 2, 1958, output increased by 300,000,000 kwh. above that of the previous week, and 145,000,000 kwh.'
over that of the
comparable 1957 week and an increase of 1,429,-

' "

adjusted non-instalment credit at the end of June
$10,100,000,000, an increase of $99,000,000 from the end of
May. The combination of the drop in both instalment and noninstalment debt produced a $226,000,000 decline in total con¬
to

of

distributed' by the 'electric
light and power industry for the week ended Saturday, Aug. 2,
1958, was estimated at 12,619,000,000 kwh.. according to the Edison
Electric Institute. Output in the past week scored the fifth con¬
secutive week of gains.
,
r
0

...

Total

credit

amount

,

loans, which fell

Total new credit given during the
month, the Board con-/
tinued, amounted to $3,265,000,000 on an adjusted basis. This
was $13,000,000 more than the
adjusted total of credit extended
for May.
The June total of new credit, however, was far below
.the $3,547,000,000 extended in the like month last
year.
Repayments of loans in June, 1958, on an adjusted basis came

increase

J.

have

fell

sumer

Troster, Singer & Co.,. 74 Trinity
Place, New York City, has in¬

immediate switch from reduc¬

an

inventories, but

Makers of road building machinery are

was

Troster, Singer Wire
To Wm. Tegtmeyer

of

that don't look

reports.

.

fcf.

steeT' Inventories

In spite of vacations

is going strong after faltering briefly, and the
business is on the upswing. About the only markets

appliance

to halt

June 'for

that

industry will'•'build only ;a million cars during the' fourth
quarter are ridiculous. I expect production to hit 1,450,000.: Con¬

For the

in

on

struction activity

an

debt

estimated

weekly

rpass

tive

registrations in the United

instalment

..

will

..

.

the end of the month.

by

durables

consumer

makers

one expert thinks con¬
300,000 tons to their stocks during
September just to maintain a 60-day inventory and add more
later.
./>.
Asked his reasons tor thinking that steel users will pad inven¬
tories, the market analyst replied: "Predictions that the automo¬

units.

3.070,875

metalworking

will

duction

are

R. W. Pressprich & Co., Freeman
& Co., and McMaster Hutchinson

from

equipment
...

accumulation

to

63.5,

roll

com¬

the major consuming industries, stocks were cut substantially
S'ome i ridustry researchers estimated that consumption
"by at least 500,000 tons. Analysts of one com¬
pany say the July yeoiictidn, nearly 2,000,000 tons, was the greatest
of any.: month since: liquidation began. ^

sumers

in June totaled 410,607, down 3% from 423,484 units in
May and 21% below June, 1957's output of 517,043. Six-month
comparisons show 1958 new car figures are 23% behind 1957, or

to

Associates

to

appliances and other

Construction

There is little likelihood of

States

timated to cost not less than $2,-

625,000.

cars

of

Makers

90%.

bottom out

tion

t

It further noted that official

to

to

cording to maturity.
to

scaled

are

model

other

and

in

publication

1959

of fasteners

exceeded shipments

assembly line,
however, will be manufactured by Buick, starting Aug. 18.

yesterday

(Aug. 6) of¬
Min¬
Ry. 4%%
equipment trust certificates, series
B, maturing annually Aug. 26,1959
to 1973, inclusive.

fered

the

toolsyjfnd other capital goods will absorb

Manufacturers

last month.

programming.
Ford will be the only car; maker
whose output this month will match July's total. The company
will account for nearly half of the cars turned out in August.
of

.iinOre .of' the, price

<anyy.preyious^posf^period,^^&teel"

only about 30%.

auto

First

cost.

absorb

this month, this agency added that Ford Motor Co. will dominate

August

in

indicates.

of tne increase.

will

assembled.

Chevrolet and Plymouth production scheduled

(bqwever^ will hbsbrb

theyrhave

ponents going into finished products will absorb 55 to 60% of the

reported an estimated 322,000
cars were turned out in July contrasted to
337,355 in June and
495,625 in July, 1957. It was the smallest July count since 1952,
when 159,660 units were made.
With

than

Makers of machine

85%

"Ward's" predicted a rise in truck-building last week to
17,201 tmits from 16,570 in the previous period. A year ago, the

The

Steel consumers,

survey

and

a

are

year ago,

per

class.

contract

a

Plymouth, Ford, Edsel, Mercury and Lincoln.
Winding up operations the past week and heading into fac¬
tory changeovers were Pontiac, Oldsmobile, Cadillac and Ram¬
bler. The closedowns, according to "Ward's" were instrumental in
the week's drop in industry output to an estimated 61,808 cars
from the preceding week's total of 85,519. In the corresponding
a

'

price increases .amount -to less than '3%, an. .average of
ton. That means- an added cpsL of about 50. cents for
the steel that goes into a refrigerator^ around $6.50 for fhe steel
that goes into a foui-dOqr autd Of thif :Ghe;*#ple

automotive

makers

car

count

a

to

third

The

industry as August gets underway, only
turning out 1958 model automobiles, "Ward's
Automotive Reports" stated on Friday last. They are Chevrolet,
six

Houston for the past 21 years.
is

them

for

the

$4.50

are coming into
the market with more frequency.
The tempo of steel orders is
quickening.
Demand for oil country casing and - drill pipe is
improving. Auto orders are bigger, but leave something to be
desired.
Demand from the auto centers is expected to pick up
sharply later in August.
The railroad picture as far as steel buying is concerned looks
brighter than at any time in the past several years. Now that the
railroad aid bill is passed, one road may spend as much as $100,000,000 on rolling stock and other materials and maintenance.
Rail orders recently have been at the lowest level in 84 years.

week

man

'

of

capacity. Production was about-1,593
ingots and castings.-ZJuly's output, 6,500,000 tons, made
best, month of the year.
August's production will
be higher.
V'-> vh;- £■'<

it

market, this trade authority further noted.
The metalworking weekly said steel users

can

prominently
connected with this phase of the
investment banking business in

years

to 59%
steel

increase

fought

Monday last.;;
hiked its operating rate three points last week

on

The industry

minimum," The "Iron Age" declared.
"They even took a 54-day strike in an effort to win their point.
But pressure from customers and government officials forced
steel firms to give in and Dave McDonald walked off with the
fattest contract in steel labor history," it added.
Tinplate prices will not move for the present because steel
firms must give 35 days' notice to their customers, but the chances
are good that tinplate will join the parade unless
the mills are
taking seriously the growing competition of aluminum for the
consequent price boosts to

u.

stated
'

•

the

1956,

Output Set'at 59.7% of Ingot Capacity This Week

In the steel market the current week the steel jprice Increase
will not stop the gradual uptrend in demand, "Steel" magazine

9-cent

bitter

b>n

Thursday, August 7, 1958

.

.

The July figure, based on preliminary /estimates by the United

i

5

page

.

total

of

output totaled 61,808 units and compared with

in the previous week.

cars

and trucks

amounted

The past week's produc¬
to

79,069 units,'or

a

de-

'

units below that of the previous week's output,

of 23,020

crease

1

;;

::

-

(531)

Trade Volume in Latest Week Stimulated

.

"Ward's."

states

The Commercial and Financial Chronicle

Number 5766

188

Volume

,

week's

Last
week

by 691

truck, output rose

units, tyhile

23,711

by

output declined under that of the previous

car

-

!

The total

V;Period Ended July ;26; 1958
Lumber shipments of 47# reporting

July

mills in the week ended
to the

..

1958, were-6.5%--above. production,, according

26,

"National

Lumber

Trade

Barometer."!-In-the

same

.

Business Failures Mged
•

ilpward

^

Failures
223

week

a

liabilities

with

of

$5,000

.or

but did not equal the

ago,

more

rose

year ago

a

in

men's

summer
suits, sportswear and beachwear. Best-sellers in
children's clothing were boys' sports shirts and bathing suits and

4

;

1

girls'

beachwear and cotton

dresses.

Continued hot weather

in

conditioners?and

Over-all

;

air

fans.

some

again boosted sales of

areas

volume

was
slightly higher
of refrigerators and laundry equip¬
slipped below the similar 1957 levels. Although interest
in lawn tables and chairs advanced appreciably during the week,
total furniture sales failed to equal those of last year.
While
moderate year-to-year gains
in purchases of linens occurred,

than

a

ago.! Purchases

year

ment

to 233 from

2^2 of this size in 1957.

liabilities; under $5,000, there

Among small casualties, involving

•

dip to 38 from 41 in the previous • week and 39 last year.
Liabilities in excess of $100,000 were incurred by 26 of the failing
businesses as against 18 in the preceding week.
y?

was

Apparel stores reported substantial gains from

the buying of women's summer dresses and sportswear. Volume
tin Fall dresses, furs and coats matched that of the similar 1957
week.
There were moderate year-to-year gains in the call for

^Commercial and industrial failures .edged to 271 in the week
ended July 31 from 264 in the preceding week,, Dun & Bradstreet,
Inc., reports. Despite the increase^asuahiesv^ivere lower than the
281 last year and the 282 in 1956. They also dipped 2% from the
prewar level of 277 in the Corresponding week of 1939.
;
1

.

of retail trade

was

«North Central States—4 to0%.

in, Latest, Week Following

A Five-Month Low Scored in Preceding Period

/

dollar volume

Wednesday of last week

M

a

*

interest
of the

in draperies and floor coverings remained close to that
comparable week a year ago.

,

All of the week's upturn was

•
.

.

toll climbed

where the

to

Housewives
ice

Contrasting declines prevailing among retailers, which

35 from 17.

from 21

decline

able

.

and East North Central to 43 from'41.

to

i

down

;

mixed.

52,

during the week occurrecfrin
from'62.
Geographic trends!

Five; regions

Pacific

high

a

level

last

week.

call for

reported

clothing.

States,

•:'

'

'•

The

buying of furniture at Western and Southern markets
«expanded appreciably during the week, with principal gains in
bedding and upholstered chairs. Interest in summer outdoor tables
and chairs lagged, but re-orders for air conditioners and fans

suffered'/nlpire'casuidtie^ ;&Kile four had less.
for marked drops

'

equalled those of the preceding week. While volume in other
'major appliances slipped somewhat, there was a moderate rise

7

Wholesale Food Price Index Moved Fractionally Higher

-

in

the buying of floor

coverings and draperies.

Trading in carpet wool rose appreciably the past week,
according to wholesalers in Boston and Philadelphia, but transactions in woolens and worsteds sagged again.
Although there
were some scattered orders for sateens and print cloths in some
.

There-was

•

.

fractional rise; last--week in the wholesale food

a

price index^, compiled by Duiij &: Bradstreef,- Inc. It stood at $6.63
on July 29, up 0.2% from the $6.62 of the- prior week.
It was

;

i

higher than the $C.37 of .the comparable date a year ago.

4.1%

': " "

,

i.

improvement in incoming orders.
Wholesale food purchases were sustained at

hams, bellies, lard, eggs,'?'steers ahd- hogs; Lower were flour,
wheat, rye,, oats, sugar, mi lk, colfee,. cocoa, peanuts and potatoes.
of 31

is to show the general

-

trend of food prices at

the wholesale level.

Commodity Price Index Rose
Moderately Last Week

Wholesale

:

;

.

Price

increases

in

steel

scrap,-rubber

and

some

,

>
"

the

earlier.

rose to 279.96 cn Aug. 4, from
It compared with 294.91 oh the comparable

Grain

277.87 a week

below that of 1957.
Rstail

trading lagged during the week causing most prices to

dip fractionally.
Some wholesalers attributed this to increased /
receipts, favorable weather reports in growing areas and reports
of crop and harvesting progress.

"

.

„

Primary receipts of Winter wheat in
a

Chicago and Minneapolis, despite

•

York

New

City

5% above the volume of the similar

ago.

■

week

last

period a

,..

apparel, metal furniture and air
spurred purchases during the week.

Sales promotions in summer

store sales in New York City for the
1958 advanced 2%

above that of the like period last year.

preceding week, July 19, 1958, a gain of 7%

,

•

-

advanced from 3 to
year

^

Cattle

receipts

in

prices, the wholesale
.

Chicago

rose

week.

•

publishers of "Security Dealers of North Amer¬
have a metal stencil for every firm and
listed in this publication,
which puts us in
a
position to offer you a more up-to-the-minute list
than you can obtain eteewhere
Aa

ica,"

bank

There

-

,

}

\

of the week when the
the governments support prices on average market prices in recent years, but they
revived slightly at the end of the period. United States exports of
cotton for the week ended last Tuesday were estimated at 77,000
bales, compared with 98,000 in the prior week and 120,000 a year
ago
Exports for the season to date amounted to about 5,678,000
bales compared with 7,546,000 during the comparable period last

•

year.

States

by

prices declined at the beginning
approved the new farm bill basing

approximately 9,000

and

names In the United
all arranged alphabetically

Cities

Addressing charge $7.00 per thousand.

Special N. A. 8 D list (main offices only) arranged
as
they appeared in "Security Dealers."
Cost
addressing N A S. D. List. $8.00 per thousand.

Just
for

st

We

can

a

small

also

supply the list
charge

was

a

up

fractionally.

gummed roll labels

Herbert D. Seibert & Co., Inc.

slight rise in orders for

improved
and prices moved


on

additional

Publishers of "Security Dealerj o/ North

combed cotton sateens
and prices Tose somewhat.
Volume in other cotton gray goods
lagged and prices were unchanged. The buying of carpet wool
There

are

States and 900 In Canada,

Cotton

Senate

this

.....

ning

multi-million dollar proj¬

a

ect, to be called Century City. If
it develops as now conceived, it
will include office buildings, ho¬
tels, department stores, shops, a
convention hall and cultural cen¬
should prove to be a
valuable contribution to the
company's progress and will un¬
doubtedly receive a great deal of
publicity.
y
J
• r
The financial picture of Twenti- y
eth Century-Fox looks very good.
As of Dec. 28, 1957 the company
had a net working capital of over
$74,000,000 or $28.30 per share,,

ter.

This

very

imately $70,000,000 in 1956 *>r
$26.34 per share. At the end of
1957, the book value of stockhold¬
ers' investment was over $88,060,000 or $33.70 per share.
Dividends of $1.60 annually or
$0.40 per share quarterly have
been paid in the last four years,
and dividends have averaged 63%
of earnings in the

past five years
through 1957.
The capitalization of the com¬
pany at the end of
of a long-term debt

millionv and
company

of

policy
zation

1957 consisted
of about $22%

2,617,486

Of

shares

stock outstanding. As the

common

following a
its Capitali¬

has been
reducing

in the open
market and from large stockhold¬
by purchases

acquisitions to May 20, 1958

have

the

reduced

amount

out¬

standing to 2,280,386 shares.
Twentieth Century-Fox Film's
common

stock is listed

the New

on

Stock Exchange, as

York

well as
,

other

leading security exchanges
and has ranged between a low of
21 % to a high of 31% this year.
At the present

writing—it is sell¬

ing at 30 %, which is less than 10
times
estimated earnings, on a
current yield basis of 5%
It

seems

%.

me—that with the

to

films and television,

for
together with

mounting oil production and an
anticipated multi-million dollar
real
estate
development in the
heart of Los Angeles—Twentieth
Century's star should be very
bright.

Joins Powell & Co.
FAYETTEVILLE, N. C.—Robert
T.
MacMillan
is
now
affiliated
with

Dealer-Broker Addressing Service

somewhat during the

-

There are two drill sites on
property, each of which is
capable of accommodating at least
28 wells. At the present time
wells have been completed and
are producing oil and gas on one
site, and two wells have beencom-t *
pleted on the second site. Addi¬
tional wells are continuing to be
drilled until the field is fully
developed.
'* ' *
'• !
The company owns 284 acres of
highly valuable studio real estate
property, on which they are plan¬

year.

Powell

&

derson Street.

noticeably, but buying ex-

cost of lard climbed

Security

I Like Best

(revised) was re¬

ported. For the four weeks ended July 26, 1958, an increase of 7%
was
reported. For the period Jan. 1, 1958 to July 26, 1958 an
increase of 1% was registered above that of the corresponding

period in 1957.

panded and prices slightly exceeded those of the preceding week.
Hog receipts climbed moderately, but trading was sluggish.holding prices slightly below a week earlier. Increased buying of lambs
helped prices move up fractionally.
Following the rise in hdgs

2

In the

anticipating the new crop.
'

page

extensive production program

in

volume

sales

According to the Federal Reserve Board's index, department
weekly period ended July 26,

consequence,

sluggish buying.
Wholesalers reported an appreciable decline in flour prices the
past week." Trading as a result, lagged behind that pf the previous
week. Sugar prices were unchanged and purchases equalled those
of a week earlier. Despite news from Brazil concerning bean allo¬
cations for home processing, cocoa prices fell during the week as
transactions sagged.
There was a fractional decrease in coffee
^prices, but buying was close to that of the prior week. Mill stocks
of rice were limited again last week, but buyers were cautious
in

trade

conditioners

Chicago rose sharply and

prices fell moderately. Following the trend in
wheat prices and expanding harvests, rye prices dipped somewhat.
Corn buying was steady and offerings light, holding prices close to
those of the prior week. There was a slight rise in soybeans prices
as

In the preceding

of 2% was reported. For the four
weeks ended July 26, 1958, a gain of 3% was recorded.
For the
period Jan. 1, 1958 to July 26, 1958, a decrease of 2% was reported

week, July 19, 1958, an increase

date a year ago.

The

ers,

a

Department store sales on a country-wide basis as taken from
Federal Reserve Board's index for the week ended July 26,

1958, rose 3% above the like period last year.

livestock

moderated boosted the general commodity price level last week.
The daily wholesale commodity price index, compiled by Dun &

Bradstreet, Inc.,

week
slight

high level, re; fleeting continued high sales at retail.
Best-sellers last week
were canned
citrus juices, frozen juice concentrates, picnic food
specialties and baked goods.
Wholesale stocks in some lines of
canned goods were limited.

The index represents the sum dotal of the price per pound
raw foodstuffs and meats.in general use arid its chief function

"J
•

sales of cotton gray goods fell below
New England dyers and finishers reported a

over-all

markets,

earlier levels.

Moving upward in wholesale cost'the? past week were beef,

from

which had increased from approx¬

a

of men's Fall

last year were

-These year-to-year changes were slight except
in the West South Central and Paeific totals.

at

decreases from a week earlier occurred in purchases
suits and sportswear and children's back-to-school

preciable

The most notice-

the

sustained

were

primarily interested in cold cuts, fresh produce,
and ' other picnic specialties.
While volume in eggs,

moderate decline from the prior
week in orders for women's Fall apparel, except for women's
better
dresses
which
were
unchanged.
Over-all bookings in
women's Fall merchandise were close to those of a year ago. Ap¬

Five of the -hine major geographic^
reported slight
week-to-week/ increases;?. The toll; in theMiddle Atlantic states
rose to 110 from 91, while; ;$bufch i^tjahtic casualties edged to 23

•

sales

Wholesalers

;v

•

cream.

<

were

butter, cheese and fresh meat climbed moderately, the
canned vegetables and baked goods slipped somewhat.

-

dropped to- 124 from'139, among contractors, off to 40 from 42 and 1
among services, down to 15 from 21.- Failures exceeded last year's
level in manufacturing and wholesaling^ but"remained moderately
below' 1957 indthsrlinesv V^^-'' -'
••r!..
-

food

Total

:>

concentrated in manufacturing,
up to

57 from 45 and.'in • wholesaling,

Continued

retail

-f-4; East South Central —1 to
+3; West North Central and Pacific Coast —2 to +2 and East
.l.i ■"?■':*£
v'; Vv.:

;

above the like week in 1957.

19.6%

summer

South Central and Mountain 0 to

.

were

-

numerous sales

Total

in the period ended
unchanged to 4% higher than a
year ago, according to spot estimates collected by Dun & Bradr
street, Inc. Regional estimates varied from the comparable 1957
levels by the following percentages: New England States +5 to
H-9%; South Atlantic +3 to +7; Middle Atlantic -f 1 to +5; West

period-new

20,4 %•:,-above production... Unfilled orders amounted
to, 40% of stocks. ;Production was 8,8%,.above; shipments 11.4%
above and new orders were 13.7% above the previous week and
orders

conditioners.

air

on

Shipments Were 6.5% Above Production in the

Lumber

up :

v

week and 20,833 a year ago.

.

Encouraged by
their buying of

promotions, consumers stepped
apparel, metal furniture,, linens and
sales slightly exceeded those of a
year ago.
According to spot checks, purchases of new., passen¬
ger cars dipped during the week, resulting in noticeable yearto-year declines.

vehicles

during the week. In the corresponding w^ek last year 119,323 cars y?'
and 20,833 trucks were assembled.
; ' ■
Last week the agency reported there; wdm 17,261 trucks made
'
in the United States.
This compared with 16,570 in the previous

by Numerous

Sales Promotions

:

,

35.

25 Park Place

—

REctor 2-9570

—

America"

New York City

'

Co. Inc.,

120 An¬

>

Financial Chronicle

The Commercial and

36

Thursday, August 7, 19581

.

.

of ,the
1 v
Monday, Utah Power &
Light Co. is scheduled to open
bids for an issue of $20 million of
change in plans of
companies involved.

Irving A, Greene

V

Celebrates 40 Years

Securities Salesman's Corner

to

the Street.

who nrcb-

that is available to a well connected and alerfc investment firm
can be profitably passed on to
clients and a very sizable market
appreciation can be achieved. But
what good is information ll you
do not have the available funds
to act upon it? Decisions should
be made decisively and promptly
in such cases. Sometimes the delay of an hour or less can be
costly in lost profit opportunities,
If you have clients who understand this, and they have the wiH
power to hold some cash or high
grade bonds (which can be used
as collateral or sold) you can

.37 Wall Street, New York City,
js celebrating 40 years in the
investment
b usine s s.
"Irv" started
his career in
1919 with
ftiely & Horton as an office boy in
the days of
the outside
New York
Curb Market,
He establishedhisown
firm> Greene

large individual
other person I
fiflvp pver met in
the securities
bushels He
left his office
pvrent for a
luncheon date and
he usually was busv in this re-

operate in their interest and to
their
"and 'haw
llsten to somtone hem
.
about where the funds are coming
fom, and what should we sell to
cfo it, then it is a different story,

and Company,
Irvine A. Greene
*° aCi
as brokers and
dealers in public utility, industrial, railroad, real estate and
mortgage certificates, public utile
ity bonds and preferred stocks,
insurance and bank stocks, mu„icipal bonds, sugar and textile
lssUes, and aviation securities.
His daughter and her husband,
D'Vera and Bob Topol gave a
surprise party for him Aug. 2 at
their estate in Mamaroneck, N. Y.,
attended bv the entire office staff

recollections of some
I have known
in the investment
business are
tied in with their ability to edu.cate their clients regarding sound
My early

•of the best salesmen

procedures. There are

investment

rules that anyone

master (if

can

takes the time to do it) that
will lead to the successful opera-

lie

investment account,
has clients who
rules he will
find
it
next
to
impossible to
achieve a lasting relationship that
will be productive both for the
of

tion

an

Unless a salesman

these

understand

himself.

■elient and for

r rpmpmhpr nne man

had

ably

more

accounts than

any

rare?v

iroect

weelf

tlay in the

every

his desk
the

celdom took luncheon at

^n

associates

udth

or

He

office,'

always with clients or other
men
with whom
he

but

Such opportunities don't stand
around and wait for your custower*: there are other people

wh° know thuigs, too.

securities

could exchange ideas.
I

dav

One

rlif not
nnt lke
make

he

whv

him

asked

cMlsto
calls
to

more
moie

did

see
see

of business,
told me
that he did not have the time
for it. He then pointed out that
clients at their place

accepted an account,
customer had to place com he

before
tiis

in

confidence

plete

his

recomgroundcompletely

He did his

mendations.

he
understood the customers objeclives and financial situation b-well

work

and

him. He

fore, doing business with
made

it

plain that unless a

very

confidence

customer had sufficient

recommendations to make
decisions over the telephone that
be could pot do a good job investIn

his

did

He

mentwjse

have

not

time

and persuade, cajole argue,
convince.
Recommendations

or

made unless

not

Here

this

unfavorable—if

followed

few of the rules that

a

investment

convinced

likewise

and

man

should also
pertaining to

clients that they

use

guideposts

as

investments

their

in

to

■ 1

a

r

.

„

of

stocks

good

companies

when they are unpopular. Take a
3ook
some of
flnHiia^inn"
look at
at some
of tho«;o
these imctuauoik,

■during the four years:

3Be chl.

S teel.—2 4 %

—54

Motors —22%

Gen.

liS

1955

1954

1953

—21%: —33%

*D-j*ones Av.

(

-23%

<#;■ —40 %

sol

—44%

18%

■—40%

.

-mI-IS

MaS:

fluctuated

The

195G

—28%

from

high

and

ebb

to

of

psychology is expressed
.buying and selling of common
clocks

have

and

fluctuations

in

that

relationship directlv with

no

value.

Impress

tomers

that

upon

the

profit buying

you -

make

to

wav

common

cusa

stocks is to

J?u£ when otherg ar£ not competihg

with

you

for the

stocks

same

and sell when there is wide pubstocks
stocks,

going
for

ItH^nrh
such

a

can

list

industries

securities.
stocks,

as

curity if available, or hold the
cagh unt|1 something worthwhile

and

The

the

for

more

more

the

cyclical the in-

ciustry, and the greater the

oppor-

tunitv for buying when others

are

discouraged and selling when
they are over optimistic. It is the
investor
first

who

rule

for

understands
successful

ment that "buys right."
"Buying
anything right will almost insure
a profit."

Hold Reserves for
Thpro

nro

;

icates.

^^i^s

lua cs'
,
.
.
A highlight was a contest for
the best impersonation of Irv

Campbell President of
Dreyfus Corporation

50

Corporation,

Dreyfus

Considering the fact that the
Treasury
market
continued to
suffer sporadic spells of indiges¬
tion despite the much publicized

one

to

haying been committed
large undertakings.
It

now

of

this problem, is

not wait until they become
catastrophes,

have educated customers
act and who know

General

what

trying to do to help them

corporate
to be
is the Fed doing?" And it

"what

days

these

build capital, you won't have to
Wear
out your tonsils trying to

an-

seems

James

J.

Low, Jr.

George D. Ryan

'Fed' is doing

is indicated that the

covering up nounced the appointments of
James J. Low, Jr. and George D.
its operations since most of the
questioners appear to be wearing Ilyan as regional representatives.
pretty good job of

puzzled looks.

Mr.

Catching the market "right" he
able to get such choice
bits as the recent Niagara Mo¬

has been

hawk, Consolidated Edison and
Tampa Electric bonds at rela¬
tively attractive prices.

Low

was formerly associ¬
Halsey, Stuart & Co.,
New York, and more recently with
Kidder, Peabody & Co., Boston.

ated

with

will

He

represent the Long Com¬
throughout New York State
line,
assisting Regional Vice-President

pany

north of the New York City
C. Ellwood Kalbach.
Mr.

Ryan has spent the last 8
in dealer service and contact

years

work in the mutual fund field. He

will represent the Long Company

throughout Northern New Jersey.
Looking for

cannot

that bonds

confident

level of prices
yields that could develop as

be far away

and

Base

market observers

astute

Some
are

a

from

base

a

new

as

the

.

summer

Harold G. Groll Joins

<

First of Arizona
PHOENIX,

ap¬

hardt

Ger-

recently returned
after
being on the

Phoenix

to

Ariz.—Harold

Groll has

Pacific

around.

speculative

for

chance

The

Manager

profits afforded by the gyrating
stock market naturally has cap¬

The

tured

of
Dreyfus

three other mutual funds has

The big query among

traders

and

Sales

ELIZABETH, N. J. —Hugh W.
&
Company, sponsors of
Fundamental Investors, Inc. and

Long

cept when the Treasury has a
job to do as was the case a fort¬
night ago.

Campbell
President

Hugh Long Appoints
Two Representatives

smooth

a

was

ding.

rough spots in the market ex¬

the

proaches its end and the fall sea¬
son
of
renewed
activity rolls

formerly Vice-

debentures on
competitive bid¬

new

the schedule for

any

the

corpo¬
ration.
Mr.

ones;

can

as

President of

you

If you

M.

Campbell

take over the account,
Teach your customers how to take
losses." That means take small
when

Stuart

has

the Fed¬
doing little

than attempting to

more

election

the

depreciation that can
in handling an account.

maHde

$45 million of

up

when

that

appears

eral, by and large, is

Inc., announce

capital

n£

is due

Wednesday,

on

support efforts of the Federal Re¬
serve, the rank and file probably
counted their blessings
for not

ir..nd

toface up to a mistake
of the most flagrant causes

for

attention

the

Coast for
the
past two
and has joined the staff of

years

moment.

the situa¬
tion is working around to where
-nr.n
cimnlH
rin
—
that, New bonds will be found attractive for
convince them they should CIO gtuart M. Campbell
York
Sales at least a portion of the "smart"
something
which they
clo not
comprehend. There are rules in Manager. The Dreyfus Fund Inc" money which is footloose.
Corporation,
and prior to

But the feeling is that

„n,

the investment game just as any 0f which Jack J. Dreyfus, Jr. is
other> an^ a man is a fool to try President, is an open-end mutual
and play it unless he at least investment fund with current net

J™™8 where "home plate" 18 l0"

of over $24,000,000.

s!:

*'*"

T,he b?st. ^uritl^ men are
Btadents of their bust"ess' o£ ™lue.3' of ..markets, of

PORTLAND.

help them
even "when

tOMGfS khfov this, and
the

follow

rules

their

-n

.

into

accounts

monument

to

Ore. —Philip

(Special to The Financial Chronicle)
PORTLAND, Ore. —E. Charles

enctea^orssolTjethmg

mav

A^erefor

left

left

±or

-u

lasting 0f the Pacific Coast Stock Exch.

a

be

their

it

even

someday!

KANSAS
Benson

-

J,

tcT„cFrr.N-av.

Barron

and

have become

Ga.

—

Robert

Robert

F.

Stockton

connected with First
„

11

^orP-f

Street, Northeast.

Peachtree

dearth

The

there

and

of

Tapering

r

i'ew

slated
some¬

only

are

a

thing of a revivifying influence
lagging emissions of recent
vintage.
on

^

is

This

110^ to

buyers
have bee'u storming the gates in
an
effc^
take up unsold por¬
tions
such issues.
But indicathat

of funds
investment has been bringing

^ns
or

say

are

that

a

n

.

i$

CITY,
i

^

It

^Arthur A.
connected

with

is

actual

stocks,

not

G,

Qrgll

;

,

Charles L. West

Charles L. West, Vice-President
0£ huss & Co., Jnc., San Antonio,
passed away <?n July 28.

possible to obtain

they are well below

a w »a

and Midwest stock Exchanges.

Arizona Company,
Building. Mr.

of

First National Bank

recently been with Tay¬

Groll has
lor

Co., in Beverly Hills.

&

With

Campbell, Robbins
Chronicle)

(Special to The Financial

H.
associated with
Campbell & Robbins, Inc., U. S.
Ore. —Daniel

PORTLAND,

Torrey has become
National

Building.

Bank

pressure

figure on the size
but the consensus

week

First

The

offerings,

new

for next week, has er.erted

a

.,n.ANTA.

Harold

gradual diminution of
ventories on dealers hands.

With H. O. Pe^t

heirs

Tr ^ f»•« sSr

im¬

about

be heirs
even

their

Inventories

E.

cooperative

your

There

endeavors

w

corresponding

with

provement in yields offered.

own emotions urge them to Zilka,
Pfossman
has Joined
theInc.,
staff813
of
Smither
& Co..
otherwise, and you will build Southwest Alder Street, members

°

stocks

of

pushing equities up to
where dividend yields have been
cut
materially.
Conversely, the
bond
market
has been
settling
been

(Special to The Financial Chronicle)

fundamental economic [)I;;per bas been added to the staff
conditions, of human nature, and ()^ Dean Witter & Co., Equitable
then they are good teacners. ifek- Building.
ing capltal g'mY 1S notJ50™eth,"g
for guessers t0 try'or that can be
..
ci°oe haphazardly. Let your cusJoins Ziika, Smither
to

thrust

forward

The
has

down

Dean Witter Adds

...

firwXr,

n'<
^ e P05"
USble miormatioii
Digitized ae^siorr
for FRASER


is that under¬
at least es¬

:

this

invest¬

bond

issue

new

caped adding to their inventories
purely for the reason that the
only debt issue was a small of¬
fering of equipment trust certif¬

.

.

The

bids

dealers

and

writers

be said for

can

market this week

a

reJusing

in

,

individual

volatile

corporate

the

inme^along'^The1re1uctanc4"that Broadway, New York City, man«« a"d underw&,f^
Dreyfus Fund

tvf fame
fore- their
the

be easily compiled, both

better se-

reinvest the funds in a

s':
public
in the

it becomes a
sell it and

heirloom

low.

flow

that

best

The

average

until

mistake

a

motheaten

issue of sim¬

an

Consolidated Natural Gas Co.,

the past

you are

Tintini

fheir

tenders for

for

*n

and

.

following

the

ilar proportions.
The week's big one

Meantime, traders with orders
down on a hectic day at the office, won
/ us'uauv too soon) or they sit with
Miss Adele Yung, the 1 irm s for clients in some of the re¬
cently marketed new issues have
their lemon and hope that some telephone operator for
found
t h e
"bargain - hunting"
day it will once again come back ten years,
to the market price at which they
pretty good, as one of their num¬
ber put it.
bought it. Instead of holding on
either

thev

t

who

u\

become appar-

deriving situation

common

ctocks.

•o

in

comes

The time to settle

are

top-flight

bis

action of the stock
heavy selling
if reverses in the un-

if the market

they were be

{suitable.

»

n

.

uExPect s°me nusta^es*
the make
greatest
errors any investor
1S to buy something and

to try
were

Promntlv
.

,

can

and he

homes,

their

or

T.ns«:es

<-w
_

And

bonds.

over

Greene,
senior
partner of Greene and Company,

Right Investment — Right Time

%

day Montana Power Co. will look

Allen

Irving

any

On

new

Or From the Sidewalk

By JOHN DUTTON

1

.

(532)

in¬

of such
is that

the level of

Chronicle)

(Special to The Financial

Mo. —Robert

LOUIS,

ST.

an

Co.

Joins F. I. du Pont

has

Siemens

Francis
chants

I.

du

joined
Pont

Exchange

the
&

S..

staff of

Co., Mer¬

Building.

ago.

With Cruttenden, Podesta
The

The

will

be

Calendar

(Special to Tee Financial

fraternity
bidding next week for a
underwriting

Chronicle)

CHICAGO. 111.—Howard

Hersh-

joined the staff o Cruttotal of S85 million of new debt
leder has joined the staff of Crutissues, in the form of three of-, La Salle Street, members of the
fprinpc

nnlpss

thprp

is

a

sudden

leder has

Nmr

Vnrlr

and

MidweSt

S.

E.

Volume

Number 5766

188

.

.

The Commercial and Financial Chronicle

.

(533)

The

Indications of Current
Business Activity

•

•

...

operations

Indicated Steel
-

Equivalent to—-

-

Steel

ingots

Auw

(net

tons)

Latest

Previous

Month

Year

Week

Week

Ago

Ago

10

53.4

§1,611,000

79.8

BUILDING

2,043,000

of

6,535,835

stills—daily average (bbls.).
Gasoline output (bbls.).
Kerosene output (bbls.)
Distillate fuel oil output (bbls.)

Tuly 25
-July 25
July 25

1,614,000

-July 25

11,760,000

Residual.fuel oil

-July 25

6,919,000
178,808,000

(bbls.)

terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
July 25
Kerosene (bbls.) at
July25
Distillate fuel oil (bbls.) at
luly 25

6,331,535

6,528,385

PERMIT

VALUATION

117,517,000

7,450,000

7,541,000

28,464,000

27,509,000

11,266,000

27,061,000
1,649,000
11,229,000

6,891,000

6,625,000

7,764,000

*179,556.000

186,486,000

175,698,000

\

1,804,000

DUN

—

-

Atlantic

South

'

.w

1,894,000

Ago

§33,366,146

$36,226,131

$28,937,331

110,334,636

155,415,330

59,946,039

51,711,539

53,420,167

221,680,023

95,084,064

109,146,069

90,583,703

97,284,565

89,870,993

___

"

Central

West

Central

'

Mountain

11,920,000

Year

Month

Atlantic
.

26,556,000

Previous

CITIES—Month

V"-~

7,763,000

Latest
Month
&

England

South

.6,922,115

"

either for the}

June:

Middle

of
rulv25

output

1,442,000

*1,561,000

are

o]

New

to

runs

*57.8

§59.7

___Aug. 10

•

(bbls.

average

gallons each)

Crude

month ended

or

production and other figures for thii

cover

Dates shown in first column

BRADSTREET, INC.—£15

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily
42

month available.

or

.

castings

and

cent capacity)

(per

week

.
_

AMERICAN IRON AND STfcEL INSTITUTE:

following statistical tabulations

latest week

41,546,997

40,965,889

36,706,777

25,115,141

29,867,313

25,343,009

118,638,927

140,452,093

98,481,875

$701,211,612

$647,007,924

$543,893,626

56,213,291

118,626,434
528,381,490

488.693,133

;
.

'

Pacific

-j

-

101,987,405

8tocks at refineries, bulk

,

-

66,487,000

July 26
freight received from connections (no. of cars)—>uly 26

607,701
494,143

:

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

CONSTRUCTION
•'
v J'„

ENGINEERING

NEWS-RECORD:
Total

r

freight loaded (number of cars)

Revenue

CIVIL

25,338,000
115,557,000

July 25

(bbls.) at

Residual fuel oil

U.

State- and municipal

000 kwh.)_.

BRADSTREET, INC.
steel

Pig iron

(per gross ton)

103,425,000

206,232,000

194,813,000

-July 31

169,785,000

362,838,000
192,504,000
170,3JS:,UU0

31,081,000

Straits

tin

*7,510,000

8,930,000

9,848,000

458,000

466,000

571,000

566,000

111

110

110

108

11,210,000

12,474,000

12,619,000

DUN &
July 31

—

-

12,319,000

.

^
•;

-

271

292

281

5.967c

5.967c

264;

Manufacturing

$66.49

$66.49

$66.49

$66.40

$40.83

$38.17

$35.17

$53.50

26.100c

24.700c

28.550c

25.275c

24.875c

24.175c

26.375c

11.000c

11.000c

11.500c

14.000c

As

COTTON

13.800c

95.625c

,95.250c

94.500c

95.625c

92.15

92.54

93.75

87.34

95.01

;95.16

Group

iSt I

:

DAILY AVERAGES:

YIELD

Industrials

Group

MOODY'S COMMODITY INDEX
NATIONAL PAPERBOARD
Orders received (tons)
Production

(tons)

Percentage

of

95.32

COTTON SPINNING (DEPT. OF COMMERCE):

93.23

91.62

94.56

87.99

88.54

85.20

Spinning spindles in place on June 28
rSpinning spindles active on June 28
Active spindle hours (000's omitted) June 28

—Aug.

5

90.91

91.19

91.91

89.78

Active spindle hours for spindles in

—Aug.

5

95.77

95.92

97.78

91.34

—Aug.

5

98.57

98.57

99.36

92.50

4,ug.

5
5

3.20

3.16

3.05

3.59

5

Aug.

5

-July 26
July 26

at end of period

(tons)

Unfilled orders

91.19

99.52

94.41

July 26
July 26

OIL, PAINT AND DRUG REPORTER
1949 AVERAGE — 109

96.23
101.97

87.86

5
5

PRICE INDEX—

Aug.

—

1

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
July 12

ERAL

3 73

'.■■'■V:

i

4.06

r4.07
v

■-V'-

Other sales

sales

——

—

—

—_.—

Other transactions initiated on the

3.63

4.05

3.86

3.78

4.19

4.10

4.01

4.30

4.77

4.52

4.56

4.35

4.33

4.28

4.43

4.02

4.01

3.89

4.32

3.84

3.84

3.79

4.24

399.8

402.8

406.5

Sales

Other sales

246,869

272,519
277,429

282,617

«3

89

93

427,875

451,865

356,484

433,554

104.95

110.31

109.99

110.16

266,943

262,002

289,506

255,448

:

93

v-d'iVV:1.

purchases

Short

sales

Other

sales

sales

1,706,210

1.322,770

277,720

356,480

392,820

July 12

1,001,640

1,531,980

—July 12

1,641,230

1,279,360

1,290,360
1,646,840

1,924,800

326,380

265,500

429,240

394,810

;

Other sales

Total

—

—.—

All

EXCHANGE

SECURITIES

—

sales by dealers

Durable

Number

Dollar

402,700

Policy

644,290

419,094

132,430
478,576

169,320

75,770

610,562

639,970

July 12

766,959

611,006

779,882

715,740

2,686.230

2,902,170

565,300

500,290

2,192,319

3,286,182

2,542,950

—.—

July 12

2,787,599

2,851,482

3,043,240

.

1,758,986
2,189.436

$45,019,661

$51,566,564

$90,589,510

1,185,643

1,386,929

10,219

8,180

July 12

July 12

$57,387,366
1,132,737
13,154

6,599

Customers'

other sales

—July 12

1,119,583

896,217

1,175,424

1,378,749

July 12

$49,493,774

$38,883,018

$51,758,079'

$72,447,447

July 12
.July 12
July 12

362,100

294,410

408,580

329,050

362,100

294,410

408,580

329,050

July 12

437,260

331.080

360,880

643,180

Round-lot sales by dealers—

Other sales
Round-lot

sales

—.—

_

purchases by dealers—

Number

shares

of

TOTAL ROUND-LOT STOCK SALES ON THE N.

ROUND-LOT STOCK

EXCHANGE AND
FOR ACCOUNT

Total

round-iot

Short

OF MEMBERS

Total

LABOR

—

Commodity
All

—

Processed

-

foods

commodities other

563,020

617,440

12,344.570

10,237,690

12,805.500

13,316.810

13,158.480

10,855.130

13,554,210

13,879,830

U. S. DEPT. OF

Meats
All

748,710

813,910

119.4

July 29
-

than farm and foods

^

of Jan.

—July 29
July 29
July 29
July 29

;

119.3

119.2

117.9

94.8

94.1

96.5

92.8

112.7

112.4

112.8

106.1

114.5

113.9

115.3

96.3

126.0

126.0

125.3

125.5

as

Monthly Investment
one-half

cent

a

773.000 barrels of foreign crude runs.
§Based on new annual capacity of 140,742,570 tons
1, 1957 basis of 133.459,150 tons. , (Number of orders not reported since introduction of
+Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

^Includes

figure.

1; 1958,

against Jan.

Plan.

pound.




*6.316,000

12,894,000
7,600,000-

*5,012,000

5,294,000

91.2

91.6

104.2

139.8

139.8

161.0

15,046,000

*15,113,000

PAYMENTS
OF

16,762,000

8,184,000

*8,528,000

9,895,000

6,562,000

*6,585,000

6,867,00O

$233,500,000
58.800,000

$259,200,000

$233,600,000
63,200,000

10,500,000

10,600,000

TO

LIFE

—

:—

:

—

60,700,000

*9,300,000

48,700.000

49,400,000

41,600,000

123,100,000

132,700,000

108,700,000

111,600,000

92,000,000

110,000,000

$584,600,000

$624,200,000 * $551,400,000

omitted):
$3,868

—

Industrial

*544

*650

999

*1,021

*1,698

$5,462

*$5,565

*$6,360

$28,999

*$29,421

$31,566

21,956

*22,062

22,343

$50,955

*$51,186

$53,909

15,116

*24,945

28,617

$30,994,000

$30,565,000

255

264

'—

—

*$4,012

*$3,997

595

—_

-—_—_______

COMMERCE)

OF

SERIES

NEW

dollars):

Month of May (millions of
Inventories—

—

—

*

Total
Sales

—

As

CIRCULATION—TREASURE DEPT.
May 31 (000's omitted)—,—

of

PRICES

—

—

June

of

TURE—1910-1911=.—100-—As

15:

products

farm

$30,836,000

INDEX
AGRICUL¬

BY FARMERS
U. S. DEPT. OF

RECEIVED

fresh

grains and hay

Feed,
Food

grains

-•

|

242

232

246"

241

232

314

284

246

246

266

167

163

—-—

179

197

221

225

277

268

231
263

239

238

Potatoes

130

224

155

Tobacco

474

475

457

275

280

242

Oil-bearing crops

—

j—

products

Dairy

and

eggs

EXPORTS

STATES

BUREAU

(000's

OF

CENSUS

—

244

248

348

355

280

163

168

143

212

204

313

$1,530,600

$1,556,900

1,092,000

1,085,500

$1,863/600
1,119,000

AND
IMPORTS
Month of April

omitted:

:

Exports
Imports

241

>

animals

Meat

Poultry

UNITED
•Revised
as

"11,328,000

4,991,000

—

Group—

products

121

125

i\lay;

Cottcn

coSiinouttwB.—

Farm

120
124

27,269,000
6,278,000

—

—

Crops
Commercial vegetables,

—July 12
July 12
July 12

NEW SERIES
(1941-49 = 100):

—

Ordinary

NUMBER

sales—

PRICES,

119

122

120
124

OF

All

(SHARES)!

sales

WHOLESALE

•

TRANSACTIONS

Other sales

419.8

MONEY IN

Y. STOCK

sales

375.2

_

-

Nondurables

July 12

shares—Total

8,396.000

381.8

100)—•

—————

-

(DEPT.

1,679,737

979,005

July 12

of

18,174,000

7,503,000

INSURANCE PURCHASES — INSTITUTE
LIFE INSURANCE — Month of May

LIIE

j

'

1,131,478

1,208,686

sales

sales

of

dividends

Total

EXCHANGE COMMISSION:

short

Short

—

:—

Total

Customers'

Number

21,213,000

17,625,000

7,637,000

MANUFACTURERS' INVENTORIES AND SALES

(customers' purchases)—t

value

values

(000.000's

430,450

20,971,000

17,443,000

of

payments
Annuity payments ———a——;

424,760

470,228

20,923,000

———.2.——

goods

endowments

299,070

609,199

92,377

82,484

DEPT.

Disability

379,410

157,760

S.

benefits

Death

.—July 12

July 12

10,042,963
842,697

~

INSURANCE—Month

Surrender

902,816

Dollar

goods

POLICYHOLDERS—INSTITUTE

31,700

July 12

648,964
1,251,540

8,428,220

18,174,000

goods

INSURANCE—BENEFIT

LIFE

371.000

-July 12

599,690

1,739,979

117

(production workers)

turing industries—
manufacturing .—

39,500

550,780

595,648
1,691,022

7,547,350

FED¬

SERIES—Month

All

385,260

2,007,364

shares

of

$454,000

894,295

Payroll indexes (1947-49
Average s==' 100)—
All
manufacturing ——™,—_—t_Estimated number of employees in manufac¬

20,300

595,280

value

$946,000

17,625,000

unadjusted

Employment indexes (1947-49 Avg.
Ail
manufacturing

278,770

2,387,998

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

$965,000

June:

of

PAYROLLS—U.

manufacturing

44,800

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
Odd-lot

$90,600

830,361

unadjusted-.-—
seasonally adjusted

LABOR—REVISED

334,610

July 12

sales

*$87,600

May:

July 12

—July 12
;uly 12

—

—

daily),
daily),

Matured

round-lot transactions for account of members—
sales

1,863,070

392,720

purchases

$87,000

NEW YORK—1917-49

monthly),

(average
(average

Nondurable

1,248,510

.

;

.

(average

Sales

Durable goods

1.591,390

OF

100--Month

Nondurable

initiated off the floor—

Other transactions

12,700
23,900

FEDERAL

DISTRICT,

BANK

=

EMPLOYMENT AND

430.3

July 12

July 12
;

•,

.

17,443,000

place June

SECOND

SALES

Sales

OF

•

floor—

purchases
sales

RESERVE

Average

4.33

3.99

3.71

STORE

DEPARTMENT

ROUND-LOT

sales

-12,200

23,900

85,969

„

of June 28

as

5

ASSOCIATION:

activity

June

.

spindles active

RESERVE

—

.

28™!

28—

June

Cotton

of June 28—

as

5

v

Group

June™

consuming establishment

Aug.

Aug.
Aug.
Aug.

$53,900

v-$51,500
.

23,900

OF

—Aug.

Aug.

.

YORK—

95.92

98.09'

4.57

Utilities

; *•

98.25

100.65 -S

100.32

.

3,551,000

$51,454,000

COMMERCE—RUNNING BALES:

Stocks

Group-

3,812,000

$56,246,000

May

DEPARTMENT

—July 30

Group——

Short

—

(primary pig.

10.800c

4.11

Total

LINTERS

AND

In public storage as of June
Linters- -Consumed month of

/

7,719,000

$61,445,000

12,100

NEW

OF

25.000c

:

7,156,000

"

3.87

Total

BANK

24.000c

5

10,066.000

(000's omitted)

24.000c

Average corporate-

Total

30

24.000c

BOND

Total

of June

—July 30

—Aug.

17,715,000

10,771,000

93

OUTSTANDING—FED¬

Consumed month of

Government Bonds—

Short

PAPER

In

5

5,472,000
18,279,000

$51,000

10.500c

—Aug.

$17,912,000

5,685,000

'hjv

COM¬

of

_.™

10.000c

at

$13,959,000

1,084
$12,966,000

•

„

,

10.000c

99%) at

95

108

-

10.500c

Industrials

OF

Month

—

11.300c

Group

Total

DEPT.

—

SERIES

164

dollars):.

10.800c

Utilities

Total

of

207

•'

179

'

26.100c

—

Short

NEW

10.500c

——

Public

INVENTORIES

MERCE

553

;

.

1,341

.

——

10.000c

1

Railroad

liabilities

service

liabilities

10.500c

Baa

-

———

10.000c

Aa

U. S.

Commercial

659

21,692,000
7,390,000

;

liabilities

"125

99

—

Wholesale

5.967c

5.957c

July 30
—July 30
—July 30

—

corporate

MOODY'S

—

<

242

125
640

1,260

'

I1:

55,200,493

235

161

liabilities

liabilities

—July 30

;

York)

,

1L,

—,1,-,jy

—July 30

at

:

Public

/

■

number

ERAL RESERVE

at

(New

/

■■■-

-

liabilities

(Millions

July 30

—

Aaa

Railroad

service

Construction
\

-

:

—,

number

COMMERCIAL

Government Bonds

Average

Wholesale

"

-July29
——July 29
July 29

;

644,998,321

number

Total

2

■

Manufacturers'

**

MOODY'S BOND PRICES DAILY AVERAGES:
U. S.

Total

163,732,000

7.900,000

number

number

number

Commercial

•>

(East St. Louis)

Aluminum

224,914,000
VpoooiuuO

-

'

at

Louis)

(St.

(delivered)

Zinc

$401,045,000

152,643,000

302,777,000

Aug.

at

refinery

Export refinery at
at

Lead

Wholesale

BUSINESS

-

Lead (New York)

JZinc

$466,263,000

$455,420,000

M. J. QUOTATIONS):

&

Manufacturing

y

165,460,000
222,572,000

—_

—

Retail

(per lb.)

Electrolytic copper—

-

'•

$388,032,000

-—July 26

Scrap steel (per gross ton)

Domestic

'

f

•

„

BUSINESS FAILURES—DUN & BRADSTREET,
INC.—Month of June:

Retail

July 31

-.

-

Finished

(E.

,588,292

PRICES:

COMPOSITE

METAL PRICES

736,407

523,114

"

INDUSTRIAL)

(COMMERCIAL AND

IRON AGE

626,573

451,056

July 31

'

100

=

<;.• vV/:
1

EDISON ELECTRIC'INSTITUTE:,

FAILURES

581,817

INDEX—FEDERAL RESERVE

AVERAGE

SYSTEM—1917-49

:

States™:

City
Outside New York City

Construction

July 26
July 26

Pennsylvania anthracite (tons)

Electric output (in

48,737,000

United

York

Retail

COAL OUTPUT <U. 8. BUREAU OF MINES):
Bituminous coal and lignite (tons)

SALES

30,611,000
133,822,000

63,697,000

';•" '

04,70 4,OUU

STORE

23,855,000

103,353,000

67,199,000

July 31

construction

construction

DEPARTMENT

25,631,000
113,483,000

ENGINEERING
v'Vi V,
t'fvv.:./- v'

—

construction

S.

Private

Public

;;

Total

New

—

83

(534)

it INDICATES

Securities Now in
Acme United Life Insurance

Co., Atlanta, Ga.

shares of common stock (par $1)
to be offered for subscription by common stockholders
at the rate of three new shares for each two shares held
June 30 filed 315,000

of record June 30,

Price—$6.25

1958.

poses.
/

'Underwriter—None.

Aircraft Armaments,

Inc., Cockeysville, Md.

July 16 ^letter of notification) 70,000 shares of common
stock j(par $1) to be offered for subscription by stock¬
holders of record July 10, 1958 (with an oversubscription
privilege). Transferable subscription warrants will be
issued at the rate of %th of a warrant for each share
now held. Warrants expire Aug. 29, 1958.
Price—$2.50
per share.
Proceeds—To reduce its present short-term
indebtedness and to procure production and test equip¬
ment.

V

American-Caribbean

Oil Co.

(N. Y.)

derwriters—To be named by amendment.
• American Durox
Corp., Englewood, Colo.
May 1 filed 2,500,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of new
plabt .and establishment -of the business at Tampa, Fla.,
including payment of the balance due on a plant site.
Underwriter—>1. A. I. Securities Corp., 3385 S. Bannock
Street, Englewood, Colo. Statement effective July 25.

American Mutual Investment Co., Inc. :/

share. Proceeds—For investment in first trust notes,

second trust notes and construction loans. Company may

develop shopping centers and build or purchase office
buildings. 'Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter — None.
Sheldon Magazine, 1201
Highland ©rive, Silver Spring, Md., is President.
• American

Petrofina, Inc., New York (8/20)
Jul3r*29 £iled $6,950,000 of'5V2% subordinated convertible
debentures due Jan. 1, 1973, of which $5,000,000 prin¬
cipal amount axeto be offered for account of Atlas Corp.,
and $1,950,000 principal amount are to be offered in
exchange for a like amount of 5%■% subordinated con¬
vertible notes issued June 30,

1958. Price—To be sup¬
plied by amendment. Underwriters—White, Weld & Co.,
Blyth & Co., Inc. and Hemphill, Noyes & Co., all of New
Yodk.
"T ""•
r"' :: ' ' ■"*** >.y: ;.M .•, "
Anderson Electric

Bankers Management Corp.

filed

400,000 shares of common stock (par 25
cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. Office—
10

Houston, Texas. Underwriter
Co., Inc., New York.

April 14 filed 8,934 shares of common stock. Price—At
($100 per share). Proceeds—For general corporate

Corp.

Dec. 23

(letter of notification) 14,700 shares of class B
common stock <par $1).
Price—$12 per share. Proceeds
—To go to selling stockholders.
Office — 700 N. 44th
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co„ Chicago, 111.; and Odess, Martin & Herzberg, Inc., Birmingham, Ala..

sidiary and working capital. Underwriter—Selected
curities, Inc., Phoenix, Ariz.

•

to be toffered for subscription by stockholders at the rate
of one new share for each four shares held about
Aug.

18,1858. Bights to expire on Sept. 2. Price—To be sup¬
plied by amendment. Proceeds—For working capital.

July 16 (letter of notification) 18,461 shares of common
stock (par $10) being offered for subscription by1 stock¬

basis of one new
(with an oversubscription
privilege); rights to expire Aug. 21, 1958./,Price—$14.75
per share. Proceeds—To repay short-term notes/' Office
—20 Elm St., Pittsfield, Mass. Underwriter—None.
;
Budget Finance Plan, Los Angeles, Calif.
6% serial preferred stock
Price—To be supplied by amendment. Pro¬
ceeds—To be used in conjunction with proposed merger
of company and Signature Loan Co., Inc.: Stockholders
of Budget Finance will vote on proposal Aug. 5, 1958.
Underwriter
Shearson, Hanimill & Co., New York.
Offering—Expected late in September.

($18 par).

—

Calidyne Co., Inc., Winchester, Mass.
June 4 filed 230,875 shares of common stock

vertible subordinated income notes of the
a

share for each

Processing Laboratories
common

stock

offer is beinS made with
respect to stock
beginning April 8, 1958 to residents of the State

Price—$2 per share. Proceeds—For land,
building and equipment, and working capital. Office—
Scottsdale, Ariz. Underwriter—None.
.

i

*

•

Underwriter—None.

....

stockholders

of

100,000 shares

record

are

Dec.

16,




Carrtone

capital.

1

Inc., Metairie

Laboratories,

(New Orleans), La.

1

600,000 shares of common stock /(par 10
cents). Price—$5 per share. Proceeds—For expansion,
working capital and .other corporate purposes. Underwriter—None.

/

.

r

r'

.

*

-j

it CentraI T)ils lnc., Seattle, Wash,
July 30 /filed 1,000,000 shares of common .stock. Pricq— V
At par (10 cents per share)/
Proceeds — For drilling
•costs.. Underwriter—None: Offering to be made through

t: Cinemark 11 Productions, Inc.
notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For working capital. Office — 937 Acequia Madre-Rd.,Santa Fe, N. M. Underwriter—Watson & Co,, Santa Fe,
N. M.
/; v.v.
^

June 30 (letter of
stock

,

,

it Columbia & Rensselaer Telephone Corp. \
/V
Aug. 4 -(letter* Of notification) 2,800 shares of common i/
stock (no par) to be offered for subscription >by stock-.,
holders at the rate of one new share for each 2.572 shares ;>:

Price—$60 per share.

Proceeds—For construction
Office—19 Railroad Avenue,;
Chatham, N. Y. Underwriter—None.
/ *
;
•<;
telephone

new

plant.

.

Commerce Oil

,

Dec.

filed

16

Refining Corp.

of first

$25,000,000

bonds due,

mortgage

construct
York.

,r

shares of stock/*'>
Proceeds — Torefinery. Underwriter—Lehman Brothers, New' '

Offering—Indefinite.

Consolidated Cuban Petroleum Corp.

July lfilted 419,000 outstanding shares of common stock

■

f

Price—Related to^the current market!"
price on the American Stock Exchange. Proceeds—To /'
selling stockholders. Underwriter—None.
. •
t
(par

20 cents).

^

(Monday);
Bonds

*

EDT) $20,000,000

noon

August 12
Haratine
■

Gas

Oil

&

(Herbert

(Tuesday)- ;

(Monday)

25

1

-

Perry

&

Inc.)

Co.,

Power

Inc.)

Jones,

(Bids to be invited) $50,000,000

-

Bonds,

v

Debentures

1

EDT)

Bankers

Debentures

..

1

$45,000,000

(S.) & Son, Inc

.Common

14

Hchnan & Co., Inc.)

(Bids 11

#

to

a.m.

Rassco Financial

EDT) $8,000,000

Corp

(Rassco

$400,000

-

invited)

4

Israel Corp.)

Oil

18

(Monday)

Corp..

(Bids

4

_

Common

Jaffray <te Hopwood)

'

94,766 shares

Pillsbury Mills, Inc

S.

Dickson

Utilities

States
Z-

,'

$1,000,000

19

f

Bonds

Power

&

Co.,

Inc.)

(To
Co.

be offered in
exchange for Humble Oil & Refining
stock—Morgan Stanley & Co. will act as exchange
agent) 11,406,078 shares

*

Weld & Co.,
Noyes

Blyth & Co.. Inc.
Co.)

:

(Bids

noon

and

(Bids to

11

a.m.

Co.

1 /_

EDT

>

$20,000,000

to

,

,

___Common

stockholdei-s—no

Bell

Telegraph

_

underwriting>

Telephone Co

$70,096,100

Debentures

(Bids to be Invited) 8110,000.000

(Bids

&

1

11:30

i<r'f

(Wednesday)

National Fuel Gas Co

.1

Debentures
a.m.

EDTi .$25,000,000

Com.
October 21

88.580,000

$60,000,000

_

Southwestern

$2,310,000

Public Service Electric & Gas Co
(Bids

Preferred

be invited)

October

Equip. Trust Ctfs.

Peabody •& Co.)

$40,000,000

Hemphill,

North Carolina Natural Gas Corp.__Debs.
(Kidder,

Bonds

Co

September 30 (Tuesday)

$6,950,000

EST)

S17.000.00C

Mountain States Telephone &
'Offering

..Debentures

1

&

?

'

.Common

August 20 (Wednesday)

1

.

(Tuesday)

Power Co..—

Consumers

102,566 shares

(New Jersey)

Norfolk & Western Ry

;

——Bonds

(Bids to be invited)

Common

.

Standard Oil Co.

(Monday)

..September 23

(Tuesday)
_<

'iff

$10,000,000

Co

(Bids to be invited)

Hopwood)

shares

Consumers

August
One-Hour Valet, Inc
(R.

Gulf

Common
Jaffray &

to be invited)

September 15

(Offering to stockholders—to be underwritten by Piper,

•

(Wednesday)

South Carolina Electric & Gas Co.—.

August
Apache

\

Debentures

::

September 10

$4,275,000

.

•

.Bonds ;
•'■'if

Equip. Trust Ctfs.
be

;

—______

3 '(Wednesday)

September

(Thursday)

Missouri Pacific RR
(Bids

,

-—Common

Management Co.__-__—

..^McDonald,

Pennsylvania Power * Co.—^

(Offering to stockholders—to be underwritten by Smith,
Ramsay & Co., Inc.) 5,000 shares

August

'

(Wednesday)

August 27

1

*

Curtis

^

4"

-

w(A. G. Becker & Co., Inc.) $22,500,000

.

August 13 (Wednesday)
a.m.

,

$20,000,000

Consolidated Natural Gas Co
11:30

/

"

.

(Tuesday)

Universal-Cyclops Steel Corp

//^

(Bids

Preferred
$1,200,000
/
——Bonds

New England Telephone & Telegraph Co—Debeni.
(Bids 11 a an. EDT) $40,000,000
V
\
.-?'/.

units
_

EDT)

noon

£■

Allen & Co. and

361,880

Co

(Bids

'/*/

August 28

_Debs. & Common;
&

/

$299,950

(Blyth & Co., Inc.; Lehman Brothers;
Scharff

.//v (CrutCendciV Podesta & Co!)
Southern California Edison Co._
;

•

Common

Houston Corp.

(White,

Under¬

August

Arnold Altex Aluminurp Co..

:

/

v

•

Co., Inc

American Petrofina, Inc

common

working

remaining

to be sold for the account of the Estate

(Bids

..

For

install

and

*

& Co.

capital stock (par
$50) and $1,500,000 of 5% subordinated registered deben¬
ture notes, second series, and $606,000 of 5%
coupon
bearer debentures. To »be offered to members of the
—

The

1957).

Utah Power & Light Co

Associated Grocers, Inc., Seattle, Wash.

Proceeds

machinery, and for working capital.
Dillon, Union Securities & Co.,
Hornblower & Weeks and Winslow, Cohu & Stetson, all
of New York.
*
"
v V/
~

chase

NEW ISSUE CALENDAR

ceipts; $40,000 for the purchase of additional equipment;
and the balance for general corporate
purposes.
Office

acaeeiation.

■"/«

Campbell Chibougamau Mines Ltd.
March 10 filed 606,667 shares of capital stock (par
$1),
of which 506,667 were issued in connection with the ac¬
quisition of all the assets of Yorcan Exploration Ltd.
(latter proposes to distribute said shares ratably to its

100,000

repayment of funds borrowed from James Talcott,
Inc.,
on assignment of accounts receivable
and warehouse re¬

writer—-None.

.

bank loans, to pur¬

share.

(Goldman, Saclis & Co. and Piper,

cents cumulative con¬
vertible preferred stock <par $4). Price—To be
supplied
by amendment. Proceeds—$1,150,000 is to be used for

,

the basis of one new share for

on

Price—To be supplied by amend-

Proceeds—For repayment of

of stock and $100 of debentures
nine
Price—To be supplied by amenta/nent.

time after July 1, 1958, until the maturity or prior
redemption of the notes at a conversion price of $4 per

July 28 filed 300,000 shares of 35

June 30 filed 4,788 shares of

ment.

any

(8/25-29)

—Miami, Fla. Underwriter—Cruttenden, Podesta
Chicago, 111.

v

Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $l,00o of bonds and 48 shares

of Arizona.

• Arnold Altex Aluminum Co.

Aug. 26, 1958

each five shares held.

(par $1).

A wscission

offered

Calidyne Co.,

limited partnership, which notes were assumed by the
Dec. 31, 1957. The notes are convertible at

company

(par $1)

7, 1958; rights to expire about
Sept. 22, 1958. Price-—$14 per share. Proceeds—To
pay
off an equivalent portion of the
company's current bank
loans which, at May 15,
1958, amounted to $8,450,000.
Underwriter—None. Statement effective July 7.
July 14 filed 500,000 shares of

of record
-

of

shares are issuable upon conversion of an ag¬
gregate principal amount of $923,500 of 10-year 3% con¬

1

being ^offered for subscription by holders of outstand¬

Colorfilm

.

Aug. 6 filed 392,611 shares of common stock (par $1.6623>
to be offered' for subscription by common stockholders

held.

(par $1).

These

Montana

Arizona

..

-

holders of record July 29, 1958 on the

Minn.

\

on the American and To¬
Price—At market. Proceeds—
Office—Toronto. Canada. Un-

Collings Henderson

share for each 6.5 shares held

Underwriter—Piper, Jaffray & Hopwood, Minneapolis,

new

Louis*

Berkshire Gas Co.

August 11

Apache Oil Corp., Minneapolis, Minn. (8/18)
July 28 filed 94,766 shares of common stock (par $2.50)

Arden Farms Co., Los
Angeles, Calif.
June 4 filed 172,162 shares of. common stock

'

ISSUE

Se¬

•

one

Co.,

ville, Ky.

Anita Cobre U. S. A., Inc., Phoenix, Ariz.
Sept 30 filed 85,000 shares of common stock. Price—At
par <($3.75 per share). Proceeds—For investment in sub¬

ingcommon stock at the rate of
five -shares held on
July

Bond

Underwriter —'Bankers

REVISED

July 2 "filed

...

par

purposes.

ITEMS

selling stockholders.

McDohald, Holman &

—

PREVIOUS

Underwriters—Eastman

(8/27)

June 10 filed 132,000 shares of

Dec. 17 filed 490,000 shares of capital stock. Price—$10.20
per

stock (par $1),
of which 125,000 shares are to be offered publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—For
expansion and other corporate purposes. Office —At¬
lanta, Ga. Underwriter—None.
Feb.

Stock Exchanges.

ADDITIONS

SINCE

it Canada Dry Corp. ; (8/27)

Life Insurance Co.

Feb. 28 filed 258,740 shares of common

•

M.

ronto

derwriter—None.

Bankers Southern, Inc.

stock (par 200).
Proceeds — To
discharge current liabilities and to drill ten wells. Un¬

,

Bankers Fidelity

of A.

To

ceeds—For investment.

Underwriter—None.

Feb. 28 filed 500,000 shares of common
Price—To be supplied by amendment.

(

it Axe-Houghton Fund A, Inc., Tarrytown, N. Y.
Aug. 1 filed (by amendment) an additional 1,000,000
shares of capital stock (par $1). Price—At market. Pro¬

share to share¬

per

holders, and $7.50 for any unsubscribed shares.
Pro¬
ceeds—For working capital and general corporate pur¬

Registration

•

Bonds

Cincinnati

(Tuesday)

& Suburban Bell Telephone
(Bids to be received) $25,000,000

Co.—Debs.

■

Volume

188

Number 5766

.

.

The Commercial and Financial Chronicle

.

(535)

Consolidated Natural Gas Co.
(8/13)
July 18 filed $45,000,000 of debentures due Aug. 1, 1983.

notes to be offered in units of four shares of

Proceeds—Forinew construction and to repay short-term
bank loans.. Underwriters—To be determined
by com¬

ceeds—To

of bonds and

Aug. 13 at Boom 3000, :30
20, N.

Counselors:

Feb.

5

cent).

v,.

■; -

.

Research

Sales

Corp.,
'

(S.)

St

holders at' the rate of five new shares for each 17 shares

Laboratories, Inc.
June 10 (letter of notification) 43,336; shares of common
stdbk (par $1) to be offered to stockholders on the basis
of One share for each 10 shares held until the close of
business on June 30, 1958. Price—$1.10 per share. Pro¬
ceeds—For the general fund. of. the company. Office—
.

Underwriter

—Lloyd Arnold & Co.; Beverly: HiIls; Calif.
Research, Inc.

efforts basis.

,

one

new

share

Price—To

be supplied

expansion

and

for

four shares held.

each

by a mendment. Proceeds—For
general corporate purposes.
Office — ;
Clifton, N. J. Underwriter—P W: Brooks &'Co.,. Inc.
New York. Offering—Indefinitely postponed. Statement
may be withdrawn.
Other financing may be arranged.
it Drinks, Inc.
July 28 (letter of notification) 200,000 shares of common
stock, (par five cents). Price—$1.50 per share. Proceeds
—#or working capital and reducing current indebted¬
ness. Office—136 East 38th Street, New York 16, N. Y.
Underwriter
Capital Reserve Corp., 1346 Connecticut
—

Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton

Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) on
May 13 at Room 654, 101 Indiana Ave., N. W., Washington 25, D. C., but bidding has been postponed.
General Devicas, Inc., Princeton, N. J.
March 31

(letter of notification) 40,000 shares of com¬
(par $1) to be offered for subscription by
stockholders at the rate of approximately 18.5 shares
for each 100 shares held about April 15; unsubscribed
shares to public. Price—$3.50 per share. Proceeds—For
expansion, equipment and working capital. Underwriter

if electronic Industries Inc.
July 29 (letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—To
exercise option to acquire assets of Photo' Chemical
Products of California,
Inc.; reserve to acquire raw
materials and for working capital.
Office — c/o Wade
Church, 707 Arizona Savings Building, Phoenix, Ariz.
Underwriter—None.

"

Ethodont Laboratories,

Berkeley, Calif.
FCb. 20 filed 300,000 shares of common stock. Price—
At par ($5 pef share).
Proceeds—To cover operating
expense during the development period of the corpora¬
Underwriter—None.

•

;

stock

—None.

Georgia Casualty A Surety Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1)
Price—$6 per share. Proceeds — For general corporate
purposes. Underwriter—Buckley Enterprises, Inc.

it Girard Investment Co.
July 28 (letter of notification) $250,000 of 6% 15-year
junior subordinated debentures to be offered in de¬
nominations of $100 and multiples thereof.
Price — At

Proceeds—For working capital. Office—-7600 West
Chester, Upper Darby, Pa. Underwriter—None.
Gfassfieat Corp.
Feb. 12 (letter of notification)
;ommon

*

/

,

"

150,000 shares of class a
stock; (par Id cents). Price—$2 per share. Pra-

eceds—For

general corporate purposes.
Office—1 E
35th Street, New York 10, N". Y. Underwriter—James
Anthony Securities Corp.; 37 Wall St, New York 5, N. Y
Guardian Insurance Corp., Baltimore, Md.

Aug. 16, 1957, filed 300,000 shares of common stock, of
200,000 shares are to be publicly offered and the'
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which are to be sold at 25 cents per
warrant

to

organizers*

incorporators,

management,

directors.

Price—$10- per share.s Proceeds—For
working capital and general corporate purposes. Under¬
writer—None.
Haratine Gas & Oil

Co., Inc. (8/12-13)
Juiie 23 (letter of notification) 199,900 shares of com¬
mon stock (par five cents). Price—$1.50 per share. Pro¬
ceeds—For development of oil and gas properties. Office
—24181 Effingham Blvd., Euclid 17, Ohio. Underwriter
—Herbert Perry & CO., Inc., New York, N. Y.
Hoagland & Dodge Drilling Co., Inc.
12 filed 27,000 shares of capital stock. Price—$10
per share.
Proceeds—To be used in part for the ex¬

June

ploration of mines and development and operation of
and in payment of indebtedness. Office—Tucson,

mines

'

Ariz.

Federal Commercial Corp.

May 21 (letter of notification) 300,000 shares of-common
stock

(par 10 cents). Price—50 cents per share. Pro¬
loans, etc. Offiee — 80 Wall St., New

ceeds—Td make

York, N; Y. Underwriter—Dumont Securities. Corp., New
York, N. Y.
'
Fidelity Bankers Life Insurance Corp.
March 7 filed'450.000 shares of

common

stock

(par $1)

(subsequently amended to 300,000 shares). Price—$7 per
share.. Proceeds—For expansion and other corporate
purposes^ Office—Richmond* Va.
Underwriter—Willis,
Kenny & Ayres, Inc., Richmond, Vh.
it Fields'' Louisiana Corp.-, Baton Rouge, La.
July 31 filed 400 shares of common stock (no par) $500,000 of 6% debenture bonds and $50,000 of promissory




Underwriter—None.

Houston Corp.
(8/12)
July 3 filed $36,188,000 Of subordinated debentures due
Aug. 1, 1968, and 1,809,400 shares of common stock (par
$1) to be offered in units Of $100 principal amount of
debentures and five shares of stock. Price—To be sup¬

plied by amendment. Proceeds — Together with other
funds, will be used to purchase the notes and common
stock of Coastal Transmission Corp., the notes and com¬
stock of Houston Texas Gas & Oil

Corp., and 80%
of Jacksonville Gas Corp. common stock, and the bal¬
ance will be added to working capital and used for gen¬
eral corporate purposes. Underwriters — Blyth & Co.,
Inc., Lehman Brothers and Allen & Co., all of New
York, and Scharff & Jones, Inc., of New Orleans, La.

mon

in

it Income Fund of Boston, Inc.
4 filed (by amendment) an additional 1,000,000
shares of common stock (par $!).> Price — At market.
Aug.

Proceeds—For

investment.

Washington, D. t.
July 24 filed. 600,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—To develop and
operate graphite and mica properties in Alabama. Un¬
Industrial

Minerals Corp.,

Co.

&

both of Washington, D.

,

Carr-Rigdom & Co.,
best efforts basis.

and

C., on

a

Industro Transistor Corp. (N. Y.)
Feb. 28 filed 150,000 shares of common stock, (par 10
cents). Price—To be related to the market pride. Pfd•eeds—For working capital and to enlarge research tiftd
development department. Underwriter — S. D. Fuller &
Co., New York. Offering—Being held in abeyance;-

'

insured Accounts Fund, Inc.# Boston, Mass.
May 12 filed 5,000 shares of common stock. Price—$5,000
per share. Proceeds—For investment. Business—To in¬

primarily in share accounts insured by the Federal
Savings and Loan Insurance Corp., in sayings and loait
associations throughout the country. Underwriter—None.
vest

Ben H. Hazen is President.

Internaticnal Opportunity Life Insurance Co.
June 2 filed 5,000,000 shares of common

stock (par $1).
Price—$5 per share. Proceeds—For working capital and
other corporate purposes. Office—Denver, Colo.. Under¬
writer—Columbine Securities Corp., Denver, Colo.
»
Investors Realty Mortgage A Financial Corp.
*
July 24 filed $250,000 of investors income certificated
(6% 10-year maturities) and 125,000 shares Of Class A
common stock. Price—The certificates will be Offered in

per certificate, and vthe
$2 per share. Proceeds—Fo#
the purpose of owning* buying and selling,' and other¬
wise dealing in real estate* or matters pertaining toreal
estate and the improvement thereof, in the areas in
which the company will operate. Office—Aiken, S. G.

various denominations at 100%
class A

conamon

stock

Underwriter—None.

at

^

it Investors Syndicate ef America, Inc.
Aug. 1 filed (by amendment) additional installment'facd
amount certificates as follows: $1,000,000 of series
$15,000,000 of series 10; $85,000,000 of series 15; and
$200,000,000 of series 20." Office—Minneapolis, Minii.

it J. E. Plastics Manufacturing Corp.
July 28 (letter of notification) 39,852 shares of common
stock (par 10 cents) of which 38,750 shares will be sold
publicly. Price—$2.12J/2 per share. Proceeds—To selling'
stockholder. Underwriter—John R. Boland & Co., Ind.; "
30 Broad

St., New York, N. Y.

July 30 (letter of notification) 95,001 shares of common
stock (par 10 cents) and 31,667 warrants to purchase
common stock which are not exercisable prior to NOV.
1, 1959 to be offered in units of 300 shares of stock and "
100 warrants. Price—$650 per unit. Proceeds—To puff
new machinery and for working capital.
Office—
Nepperhan Avenue, Yonkers, N. Y. Underwriter—

chase
400

None.

v

♦

*

Jacksonville Capri Associates Ltd.,

which

and/or

Avenue, Washington 6, D. C.

tion.

it Future Planning Corp., New York
July 30 filed $15,000,000 of Plans for the accumulation
of shares of Pioneer Fund, Inc.
General Artltin# A Fikii D#rR.» Now York
Jan. 14,1957 filed 426,988 shares of common A stock
(no
par) and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States

-

St. Louis# Mo.
31,584 shares of common stock (par $5) to
exchange for the issued and outstanding
shares of common stock (par $5) of Duro-Consolidatea,
Inc., and for the shares of Duro common which may be
issued upon conversion of Duro's $200,000 subordinated
convertible debentures, series of 1956.
be offered

derwriters—Dearborn

May 23 filed 2,138,500 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—-To
pay some $174,000 of outstanding indebtedness and to
complete phase one of the port development plan, at a
cost of $1,425,248, and the balance will be added to
working capital. Office—Fort Pierce, Fla. Underwriter
—Atwill & Co., Inc., of Miami Beach,
Fla., on a best

par.

165,625 shares of common stock (par $1) to
offered for subscript ion by common stockholders at

Dec. 24 filed

of

Office—Brooklyn, N. Y. Underwriters—Statement

Fort Pierce Port & Terminal Co.

-

loan, acquisition pf properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.

Laboratories, Inc.

to be amended.

*

mon

Juqe 5 filed 350,000 shares of common stock. Price—$1
per share. Pfoceeds—:Fbr new equipment, repayment of

the rate

Hussman Refrigerator Co.,

cents). FficC-^$2.50 per shire.
motion of company's products, working
capital, addi¬
tional inventory and accounts receivable, for research
and development and for other general corporate pur¬
poses.

Houston Corp.
July 3 filed 818,333 shares of common stock and 575,869
shares of class A stock to be offered to holders of out¬
standing common, on the basis of 1.51 times for each
share of common stock held and approximately 1.5 shares
of class A stock* for each 381,273 class A share held. (The
right to subscribe with respect to 133,850 outstanding
class A shares has been waived.) Furthermore, $511,500
of debentures and an unspecified amount of common
shares (to be supplied by amendment) will be issued in
connection with the acquisition of outstanding common
stock of Jacksonville Gas Corp.
June 27 filed

(par U»
Preceeds—For sales pro*

.

bd

improvements on
upon the

and

Forest

.

Delhi-Taylor Oil Corp., Dallas, Texas
July 15 filed 575,869 depositary units for the class A
stock of the Houston Corp., to be offered for subscription
by the holders of common stock of Delhi-Taylor of rec¬
ord May 23, 1958 on a l-for-10, basis (with an oversub¬
scription privilege). Each depositary unit will represent
(a) the beneficial ownership of one share of class A
stock of the Houston Corp. and (b) an irrevocable option
to purchase 8,945/10,OOOths of one additional share of
class A stock of Houston during a two-year period com¬
mencing on Aug. 15, 1959, or such earlier date as may
be-determined.
Price—To be supplied by amendment.
Underwriters—Lehman Brothers arid Allen & Co., both
of-New York.
.,V- *.
:

&

for

March 26 filed 150,000 shares of capital stock

Daybreak Uranium, Inc., Opportunity, Wash.
Jap. 29 filed 1,156,774 shares of common stock- (par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and 526,774- shares for selling stock¬
holders. Price—At market. Proceeds—For exploration
and drilling costs and other corporate purposes. Under¬
writer—Herrin Co., Seattle, Wash.
/
J

Dixon Chemical

payment

470,000 shares Of common stock (par 21
Price—$3 per share. Proceeds—For exploration
working capital. Office — Portland, Ore
Underwriter—To be named by amendment. Sol Gold¬
berg is President

12, 1958. - Price—$19 per share to
stockholders; to public, $20 per share. Proceeds—To
finance, additional building, machinery, equipment; and
for working capital. Office—Sandy Hook, Conn. Under¬
writer—Smith, Ramsay & Co., Inc, Bridgeport, Conn.

5837 W. Adams Blvd.; Culver City, Calif.

in

26 filed

work

held of record Aug.

Diketan

solely for purchase of notes and other

issued

cents).

•

(8/13)
July 18 (letter of notification) 5,000 shares of common
stock (par-$10) to be offered for subscription by stock¬

Ltd.

$1,000,000

Fluorspar Corp. of America

& Son, Inc.

Diersoit Mines

in Baton Rouge; for equipment: and
Underwriter—None.

Improved properties. Underwriter—None.

Havana, Cuba ;
/v*v ~C-i
March 3i filed 767,838 units of voting trust certificates
each certificate representing the ownership of one share
of common stock
(par one-half cent) in each of 24
Cuban companies.
Price — To be supplied by amend¬
ment.
Proceeds—For capital expenditures, exploration
costs and other corporate purposes. Underwriter—None.
.Curtis

to

homes and secured by mortgages of other liens

,

Dec.
-

filed

indebtedness

:

Cuban-Venezuelan Oil Voting Trusts#

7

ceeds—To be used
•

.

Robert.H. Green is President.

stock, $2,000
Pro¬
purchase the Belle-

Price—$7,500 per unit.

contract

Inc., Clifton, N. J.
of 12% notes, payable nine
months after date of issue in units of $100 or in mul¬
tiples thereof. Price—100% of principal amount. Pro¬

,

Fund# Inc.* St. Louis, Mo.
filed 100,000. shares of capital stock, (par one
Price—At market.
Proceeds—For investment

a

First Backers Co.,

April

Research

Underwriter —* Counselors
Louis.

working capital,

Rockefeller Plaza; New

York

over

mont Motor Hotel

petitive bidding. Probable- bidders; Halsey, Stuart & Co.;
White, Weld & Co. and Paine, Webber; Jackson & Curtis
(jointly); Morgan Stanley & Co. and First Boston Corp.
.(jointly). Bids—To be received up to 11:30 a.m. (EDT)
on

$500 of notes.

take

39

Jacksonville, Fla.
July 23 filed $325,000 of limited partnership interests.
Price—$5,000 per unit. Proceeds—For the purpose Of
acquiring and operating the Capri Motel in Jacksonville,
Fla.

.

Underwriter—None.

Kalvar Corp., New Orleans# La.
July 28 (letter of notification) 15,000 shares Of commonv
stock (par two cents) to be offered for subscription by
common
stockholders of record' Aug. 15, 1958 ott the
basis of one new share for each five shares* held; rights
to expire on Aug. 25, 1958. Price—$20 per share. Pro¬
ceeds—To retire bank loans, to invest in fixed assets mid
for working Capital. Office—909 South Broad St., NOw
Orleans 25, La. Underwriter—Howard, Weil, Labouisse,

Friedrichs &

Co., New Orleans, La.

Laclede Gas Co.

$10,000,000 of first mortgage bonds dtte
first mortgage bOnds
due 1982. Underwriter—To be determined by compete
tive bidding.
Probable bidders; Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Blyth & Co., Inc.;Lehm&ri
Brothers, Merrill Lynch; Pierce, Fenner & Smith* and
Reinholdt & Gardner (jointly); Eastman Dillon# UniOtt
Securities & Co.; Stone & Webster Securities Corp; Bide
—Had been expected to be received up to 11 am. (EDT)
on July 8, but offering has been postponed indefinitely.
filed

June

18

1983.

Proceeds—To refund 4%%

,

•

Laughlin Alley Steel Co., Inc., Las Vegas, NOV.
of 6% unsecured cOhvertimd <*&•

June 13 filed $500,009

and 150,000 shares Of common
cents). These securities are to be Offered

bentures due June 30,1968
stock (par 10
in 5,000 units,

each consisting of $100 of debentures and
Continued on page 40

The Commercial and Financial Chronicle
40

•

:

3i)

Continued, from page
30 common shares.

3nc., Little Rock, Ark.

Proceeds—To¬
company"s con¬
struction
program
through 1959.
Manager-Dealers —'
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth

the New York Stock Exchange.
gether with other funds, to carry on the

price

Underwriter—Sam Watson Co.,
Statement to be withdrawn.

July 16 filed $1,280,000 of participations in
interests.
Price—$10,000 per participation.
To

Proceeds—

"Underwriter—None.

0

Insurance Securities

Life

i( Mortgages, Inc.
July 28 (letter of notification) 296,750 shares of com¬
mon
stock (par 25 cents).- Price—$1 per share.
Pro¬
ceeds—To be invested in notes secured by first and

partnership

Leader Building in Cleveland, Ohio.

purchase the

on

•|& Co., Inc.

Leader-Cleveland Realty Associates, N. Y.

second liens upon

Corp.

of the company.
Building, Colorado Springs,

yrice—$5 per share.

longren Aircraft Co., Inc.
June 18 (letter of notification) 34,000

properties to be selected by the man¬

agement

of capital stock (par $1)
Proceeds—To acquire stock control
of "young, aggressive and expanding life and other in¬
surance companies and related companies and then to
operate such comparfies as subsidiaries." Underwriter—
First Maine Corp., Portland, Me.
Jdarch 28 filed 1,000,000 shares

<

Office—223A Independence

Colo. Underwriter—Copley
Colo.
Motel Co. of Roanoke, Inc., Roanoke, Va.
Nov. 18,1957 (letter of notification) 60,000 shares of com¬
mon stock (par 40 cents). Price—$5 per share. Proceeds—
For purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York.
&

shares of common

Co., Colorado Springs,

Picture

Motion

Utock (par $1). Price—From 80 cents to $1.40 per share,
proceeds—To go to selling stockholders. Office—24751

Investors

Inc.

July 11 filed 200,000 shares of common

stock (par $1).

Price—$10.75 per share. Proceeds—For investment. Of¬
fice—1000 Power & Light Bldg., Kansas City, , Mo. Un¬

Blvd., Torrance, Calif. Underwriter—Daniel
Keeves & Co., Beverly Hills, Calif.

Crenshaw

derwriter—None.

t

Hotel Corp., N. Y. C.
July 29 filed $1,655,000 limited partnership interests in
this company. Price—$5,000 per unit. Proceeds—To pur¬
chase hotel. Underwriter—Tenney Associates, Inc., New

(N. Y.)
units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment. Sponsor—Ira Haupt

York,

&

Lord Elgin

Municipal Investment Trust Fund, Inc.

1958

.

III.
July 11 filed 106,156 shares of common stock (par $10)
being offered for subscription by common stockholders
of record July 31, 1958, on the basis of one new share
for each two shares held; rights to expire on Aug. 20,
1958. Price—$10 per share. Proceeds—For working cap¬
ital. Business—Composing room equipment and print¬
ing machinery and equipment. Underwriter—Shearson,
Hammill & Co., New

Co., New York.

Corp., Estes Park, Colo.
May 16 (letter of notification) 2,916,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
National Beryl & Mining

Proceeds—For mining expenses. Underwriter

share.

per

—Birkenmayer & Co., Denver, Colo.

June 4
stock.

York.

(letter of notification) 50,000 shares of common
Price—At par (50 cents per share). Proceeds—

to implement and carry
out the projected plan of development and operation.
Office—1406 Pearl St., Boulder, Colo.
UnderwriterWestern Securities Co., Boulder, Colo.

Magna Investment & Development Corp.
May 26 filed 56,000 shares of common stock and $500,000
debentures. Price—For debentures, at

(in $1,000 units); and for common stock, $4.50 per
share. Proceeds—For contractual obligations, for work¬

and

train

To

National

i?ar

procure

persons

filed

25

offered in exchange

right, at its election, to accept less than 90% but in

the

event less than 81% of the American Encaustic com¬

no

^ Mansfield Tire & Rubber Co.
July 31 filed $1,200,000 of participations in the com¬
pany's Employees Stock Purchase Plan, together with
52,747 shares of common stock which may be purchased
pursuant to the plan.

Statement effective

mon.

July 17.

Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.

Martin Co., Baltimore, Md.

of sinking fund debentures, due '
July 1, 1978. Proceeds — Working capital and general
corporate purposes. Price—To be supplied by amend¬
ment. Underwriter—Smith, Barney & Co.; N. Y. Offer- / ^ New England Telephone & Telegraph Co. (8/26)
teg, which was expected on July 2, has been postponed. ■ July 31 filed $40,000,000 of 34-year debentures due Sept.
1, 1992. Proceeds — To refund a like amount of 4J/2%
Issue to remain in registration.
first mortgage bonds, series B, due May 1, 1961, which
Mercantile Acceptance Corp. of California.,
are intended to
be redeemed on Nov. 1, 1958.
Under¬
July 22 (letter of notification) $30,000 of 5%%' 12-year
writer—To be determined by competitive bidding. Prob¬
capital debentures. Price—At par. Proceeds—For work- / able bidders: Halsey, Stuart & Co. Inc.; The First Boston
ing capital. Office—333 Montgomery Street, San Fran¬
Corp.; Morgan Stanley & Co. Bids—To be received at
cisco, Calif. Underwriter — Guardian Securities Corp., ' Room 2315, 195
Broadway, New York, N. Y., up to
San Francisco, Calif.
11 a.m. (EDT) on Aug. 26.

^ Merical Exploration Co.

•

July 25

July 23 (letter of notification) 300,000 shares of common
stock being offered for subscription by common stock¬
holders of record July 29, 1958 at rate of one new share

(letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
For mining expenses.
Office—710 S. 4th Street, Las
Vegas, Nev. Underwriter—None.

;

>

New Haven Clock & Watch Co.

each share

for

owned

Inc., Miami, Fla. (8/19-20)
102,566 shares of common stock (par $1).
Price
To be supplied by amendment/ Proceeds—To
selling stockholders. Underwriter—R. S. Dickson & Co.,
Inc., Charlotte, N. C.
One-Hour Valet,

•

—

ices; the remaining 664,818 shares are to be offered to
public. Price—To be supplied by amendment. Pro¬
selling stockholders.
Underwriter—Market
Securities, Inc., Salt Lake City, Utah. Statement effec¬
the

ceeds—To

tive June 5.

19 filed 20,000 shares of common stock (par $1).
Price—At market.
Proceeds—For investment. Under¬

Weighing & Vending Machine Corp.

Peerless
27

June

(letter

maximum of 25,000
minor¬
the basis of one new share for each
notification)

of

ity stockholders on
Any unsubscribed shares will be pur¬

four shares held.
chased by

Rock-Ola Mfg. Corp. Warrants expire 20 days
Price—$4.25 per share. Proceeds
capital. Office—800 N. Kedzie Ave., Chi¬

from date of issuance.
—For working

51, 111.

Underwriter—None.

^Pennsylvania Power Co. (8/27)
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988,
Proceeds—To

redeem

(jointly); Lehman Brothers;
Witter
Bids—Tentatively expected to be re¬

Corp., and Shields & Co.

(with

&

Co

(jointly).

ceived up to 11 a.m. (EDT)

Walker

&

of New York.

Mid-West Durex Co., Kansas
City, Mo.
July 14 filed 725,000 shares of common stock

Price—$2

per

share.

(par $1).

Proceeds—For construction of plant

end for working capital.
Underwriter—Investment Sales,
Inc., 532 E. Alameda Ave., Denver 9, Colo.

Modern

Community Developers, Inc..
Princeton, N. J.

^ ^ filed 15,000 shares

$100 per share.

Pillsbury Mills,

Montana

of common stock.

Power Co.

Price—

(8/12)

North

Proceeds

—

Carolina Telephone

Co.
notification) 207,143 shares of

common

stock to be offered to common stockholders at the ratio

share for each six shares held. Price—At par ($1
share). Proceeds—To pay off obligations and for
telephone plant construction. Underwriter—None.
one

O.

T, C.

March

bonds due 1988.

Together with other funds, to be used to
bank loans and to carry on the
company's construction program through 1959. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Lehman Bros.;
•Merrill Lynch, Pierce, Fenner & Smith, and Stone &
.Webster Securities Corp. (jointly);
White, Weld & Co.;
Eastman Dillon, Union Securities & Co.; Kidder Pea—

body & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—To be received up to noon (EDT) on
Aug. 12 at Room 2033, Two Rector St., New Ybrk, N. Y.

Enterprises Inc.

Policy Advancing Corp. :,V;

(letter of notification) 23,200 shares of com¬
B stock (par $1). Price—$5 per share. Pro¬
completion of plant plans; land; construc¬
tion and operating expenses.
Office—2502 N. Calvert
St., Baltimore 18, Md.
Underwriter—Burnett & Co.,
Sparks, Md.

ceeds—For

.

March 25

(letter of notification) 30,250 shares of com¬
mon
stock (par $5) to be offered for subscription by,
common stockholders at the rate of one new share for
each

share held; unsubscribed

holders

debenture

Proceeds—For

and

working

St., Binghamton, N. Y.

shares to be offered to
Price—$8 per share.

to others.

capital. Office—27
Underwriter—None.

Chenango

Potomac

Plaptic Co. >
(letter of notification) $57,500 of 6% subordi¬
nated convertible debentures and 57,500 shares of class A
common stock
(par one cent) to be offered in units of
500 shares of stock and $500 of debentures. Price—$3J)00

March 31

Proceeds

unit.

—

For equipment and working cap¬

Office—1550 Rockville Pike, Rockville,

ital.

Md. Under¬

writer—Whitney & Co., Inc., Washington, D. C.
Prairie Fibreboard Ltd.

shares of common stock (par $1.50)

to be offered for sale to

inces

of

Manitoba,

residents of Canada in the Prov¬

Saskatchewan

residents of the United States "only
—

$2.50

per

Office

share.

—

Alberta and to
in the State of North
Proceeds — For con¬

and

Saskatchewan,

Saskatoon,

Canada. Underwriter—Allied Securities Ltd., Saskatoon,
Canada.
Private

Enterprise, Inc., Wichita, Kansas

May 5 filed 125,000 shares of common stock.

Price—$10

share. Proceeds — To be used to organize, or re¬
organize and then operate companies in foreign nations,
principally, but not exclusively, in the Far East, Near

per

East and Africa.

Public

Underwriter—None.

Service

Electric

&

Gas

Co.

(8/20)

July 24 filed $60,000,000 of first and refunding mortgage
bonds due Aug. 1,\ 1988.
Proceeds—To be added to the

be used by it
including payment

general funds of the company, and will
for

its

before

general

corporate

purposes,

maturity of $10,000,000 principal amount of un¬

secured short-term bank loans made to

the company on

portion of the cost of
its current construction program.
Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb & Co. and Lehman Brothers (jointly).
Bids—Ex¬

June

6

class

mon

$15,500,000 in




Price—To be supplied by

per

Underwriter—None.

£Uly 1 ^iled $20'000>0°0 of first mortgage

Proceeds

repay

an

(a maximum of $33 per unit).

June 19 (letter of

(8/18)

Inc.

capital expenditures. Underwriters—Goldman, Sachs &
Co., New York, and Piper, Jaffray & Hopwood, Minne¬
apolis, Minn.
s

per

Together with funds from private placement of $13,750,000 of 5%% first mortgage pipeline bonds due June
1, 1979, to be used for construction program and working
capital. Office—Fayetteville, N. C. Underwriter—Kid¬
der, Peabody & Co., New York.

of

Proceeds—For working capital and gen¬

eral corporate purposes.

amendment

Canada

11

tures and two shares of stock.

H.

Aug. 27.

filed 200,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriter—Doolittle & Co., Buffalo,
N. Y., and Davidson Securities Ltd., Toronto, Canada..,

July

construction

Underwriter—G.

on

Peruvian Oils & Minerals Ltd., Toronto,

purpose.

purposes.

first mort¬

like amount of 5%

a

bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; Equitable Securities

gage

Price

Co., of St. Louis, Mo. and New York and Kidder, Pea¬
body & Co. and Stone & Webster Securities Corp., both

a

shares of common stock (par $1) to be offered to

struction

—

Calif.

writer—Investors Investments Corp., Pasadena,

Dakota."

10

Inc., Pasadena, Calif.

Peckman Plan Fund,

May

^ North Carolina Natural Gas Corp. (8/20)
July 31 filed $5,200,000 of subordinated income deben¬
tures due Aug. 15, 1983, and 520,000 shares of common
stock (par $2.50) to be offered in units of $20 of deben¬

each

Corp., Salt Lake City, Utah

Production

Paradox

April 18 filed 767,818 shares of common stock (par $1),
shares are to be offered by the company
in exchange for oil and gas properties and 3,000 for serv¬

of which 100,000

July 28, 1958, on the basis of one new share
shares held; rights to expire on Aug. 14.
price
$17 per share. Proceeds — Together with other
funds, will be used for repayment of bank loans and for

for

Co., En¬

July 29 filed

Feb. 28 filed 210,000

of record

and gas

Business

equipment, and a reserve for future operations.
properties. Underwriter—Universal Securities
terprise Building, Tulsa, Okla.

oversubscription privi-'
lege); rights to expire on Aug. 11, 1958. Price—At par
($1 per share). Proceeds—For general corporate pur¬
poses. Underwriter—L. D. Sherman & Co., New York.

Michigan Gas Utilities Co.
July 9 filed 33,438 shares of common slock (par $5)
being offered for subscription by common stockholders

Price—
various

stock.

July 29 filed 100,000 shares of common stock (par $25),
Price—To be supplied by amendment.
Proceeds—For

stock (par one

June 11 filed $25,000,000

Operations, Inc., Tulsa, Okla.

Merrill Lynch, Pierce, Fenner & Smith and Dean

Gypsum Co.

298,000 shares of common stock to be
for all but not less than 90% of the
outstanding shares of common stock of American En¬
caustic Tiling Co. Inc., in the ratio of one share of
National Gypsum common for each 2-4/10ths of Amer¬
ican Encaustic common.
National Gypsum shall have

June

corporate purposes. Busi¬
in the development and
operation of various properties, including shopping cen¬
ters. Office—Salt Lake City, Utah. Underwriter—J. A.
Hogle & Co., Salt Lake City, Utah.
Statement to be
amended. Offering—Expected in latter part of August.

ing capital, and other general
ness — To engage primarily

Mineral

&

Whitney & Co.,

Utah.

$2.50 per share. Proceeds—For payment of loans,
—To acquire and operate mining claims and oil

cago

National Educators Finance Corp.

of 6% convertible

,

Oil

Under¬

other corporate purposes.

and

April 14 filed 200,000 shares of common

May 9, 1957 filed 5,000

Ludlow Typograph Co., Chicago,

•

■

Thursday, August 7,

writers—Harrison S. Brothers & Co., and
both of Salt Lake City,

Price—To be related to the current market

of Montana.

of the American
expenditures in
company's South San Francisco foundry

working capital

Power Co.

1 filed 100,000 shares of common stock (no par).
stock will be offered only to bona fide residents

The

Price—$100 per unit. Proceeds—To¬

acquiring latter
end for working capital*

Montana

July

gether with the $175,000 mortgage loan
Brake Shoe Co., will be used to meet

.

.

.

.

(536)

30, 1958, and payment of

a

pected to be received up to 11 a.m. (EDT)
at 80 Park Place, Newark, N. J.

on

Aug. 20

Oil

Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record March 24, 1958 at the rate of 1% new shares
for each share then held.

Employees

may

purchase 50,-

000 shares of unsubscribed stock. Price—To stockholders,

^ Rangeley Saddleback Corp.,

Rangeley, Me.

July 24 (letter of notification) 24,760 shares of common
stock.
Price—At par ($10 per share).
Proceeds—For

building and operating

a

ski resort. Underwriter—None.

$1.75

Rapid-American Corp., New York ' J- *
J "
June 19 filed $1,504,000 of 7% sinking fund debentures,

For

due Nov.

per share; and to public, $2 per share. Proceeds-^
mining; development and exploration costs, and for

15, 1967, together with 105,000 share? of com-

188

Volume

Number 5766

.

.

The Commercial and Financial Chronicle

.

stock

(par $1). Proceeds—The debentures are al¬
outstanding having been issued in payment of
47,000 shares of common stock of Butler Brothers which
weFe acquired by Rapid American from 19
persons, in¬
cluding three directors of the corporation. The deben¬
tures are being registered against the possibility that
they may be sold by present owners. Of the 105,000
mon

Sugarbush Valley Corp., Warren, Vt.

ready

•

(9/3).

Price—At

par.

Tax

je¬

Proceeds—For work¬

Ltd., Alberta, Canada

if

offer

will be added to working capital. Under¬
writer—Pacific Securities Ltd., Vancouver, Canada.

Riddle Airlines, Inc., Miami, Fla.
May 15 filed 750,000 shares of common stotik'(par 10'
cents). Price—To be supplied by amendment. Proceeds
—For working capital. Underwriter—James H. Price &
Co*, Inc.,"of Coral Gables, Fla., for 250,000 shares; balance
on

"best efforts" basis.

:■'*

.-'.v.*'",•.

,

★ River Asphalt, Inc.
July 25 (letter of notification) 850 shares of common
stock (no par).
Price—$100 per share. Proceeds—For
operation

of

asphalt plant.

Address—P. O. Box 366,
Underwriter—None.

an

Newell, W. Va.
Robosonic
June

12

filed

Price—$3

National

Industries

Corp., N. Y.
500,000 shares of common stock, class B.
share.

Proceeds—To manufacture on a
automatic telephone answering instru¬
ment; the enlargement of the research and development
facilities of the company; patent and patent applications;
per

contract basis

an

public relations, and for working capital. Underwriter—
None.

ftocky Mountain Quarter Racing Association
Oct.

31,

common

1957

(letter of notification)
Price—At par

stock.

shares of
share). Proceeds

300,000

($1 per
outstanding indebtedness. Office—Littleton,
B. Ford Co., Windover Road,
Memphis, TEnn. '*

—To

repay

Colo.

Underwriter—R.

St.

Regis Paper Co., New York
July 8 filed 118,746 shares of common stock (par $5)
to be offered in exchange for outstanding shares of capi¬
tal stock of Growers Container Corp., Salinas, Calif., on
the basis of

one

St. Regis share for 18 shares of stock of

Growers Container.
San

Underwriter—None.

Diego Imperial Corp., San Diego, Calif.

Proceeds—To retire $550,000 of promissory notes. Under¬
Utah. Offer¬
ing—Postponed indefinitely.

writer—J. A. Hogle & Co., Salt Lake City,

it Satellite Time Corp.
Aug. 1 (letter of notification) 4,950,000 shares of common
(par one cent) to be issued upon exercise of war¬
rants in units of 100 shares each. Price — $1 per unit.
stock

Proceeds—For

determined

ders:

Y.

Office—115 Broadway,
Underwriter—None.

by

competitive

bidding.

Probable

bid¬

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; First
Corp., and Dean Witter & Co. (jointly); Blyth

Boston

& Co., Inc.

Bids—Expected to be received

Standard Oil Co.

on

Aug. 25.

(Calif.)

June 4 filed $150,000,000 of sinking fund debentures due
July 1, 1983. Price—To be supplied by amendment. Pro¬
ceeds—To refinance a bank obligation of $50,000,000 due
this year to provide additional capital for the company'!
overall program, Underwriters—Blyth & Co., Inc., and
Dean Witter & Co., both of San Francisco, Calif., and
New York, N. Y. Offering—Postponed from June 25 by
the company "due to market conditions."
Issue to re¬
main in registration.

^Standard Oil Co.

(New Jersey)
(8/19)
July 31 filed 11,406,078 shares of capital stock (par $7)
to be offered in exchange for Humble Oil & Refining
Co. capital stock at rate of live Standard Oil shares for
each four Humble

Oil

shares.

The

remain open until Oct. 14, 1958.
gan

offer is expected

to

Exchange Agent—Mor¬

Stanley & Co., New York.

State

Life, Health & Accident Insurance Co.

July 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
invested in stocks and bonds and to acquire other life
insurance companies. Address—P. O. Box 678, Gulfport,
Miss. Underwriter—Gates, Carter & Co., Gulfport, Miss.
Strategic Minerals Corp. of America, Dallas, Ten
March 31 filed $2,000,000 of first lien mortgage 6% bondi
■

and

975,000 shares of common stock (par 10 cents). Prict
tw>nds, 95% of princmal amount; and for stock $?
per shfcre. Proceeds—To erect and operate one or mor#
chemical processing plants using the Bruce - Williams
Process to beneficiaie manganese ores.
UnderwriterSouthwest Shares, Inc.. Austin, TdxSs.
—For

-

.




Underwriter

United States Telemail
Service, Inc.
17 filed 375,000 shares of common stock

—

as

Office—Salt Lake City, Utah.
Amos Treat & Co., Inc., of New York.

purposes.

Proceeds—To

repay $10,300,000 of bank loans and for
construction program. Underwriter—A. G. Becker &
Co.

Inc., Chicago, 111., and New York, N. Y.
:

•

:

;

:

;

purposes.

April 30 filed 2,000,000 shares of capital stock (par 25
Price—To be supplied by amendment. Proceeds
—To selling stockholder.
Underwriter—Thomson Kernaghan & Co., Ltd., Toronto, Canada. To be offered in
Canada

Graham

May 26 (letter of notification) 1,250 shares of common
(par $10) and $37,500 of 6% serial subordinated
1958, to be offered in units of one
$50 principal amount of debenture*

to be offered to stockholders on the basis of
each two shares of stock owned

one

unit for

(500 of the shares

543

Whitehall

St.,

S.

W., Atlanta, Ga.

April 11
\

mon

of

(par 10 cents) to be offered in unit*
of one share to each class of stock. Price—$11
per unit
Proceeds
For working capital.
Office — 111 E. Main
St., Morristown, Tenn. Underwriter—Valley Securitiei
Corp., Morristown, Tenn
—

Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 pei
share.

Proceeds—To drill two

corporate

new

Underwriter
& Co., Inc., Salt Lake City, Utah.
purposes.

Trans«America

wells and for general

—

Andersen-Randolph

Uranium

Mining Corp.
Nov. 6, 1957 filed 3,000,000 shares of common stock (pai
one mill). Price—25 cents
per share. Proceeds—For land

acquisition, exploratory work, working capital, reserve#
and other corporate purposes. Underwriter—None. A]
fred E. Owens of Waterloo. Ia„ is President.
Havana, Cuba
(par 50
cents) being offered for subscription by holders of out¬
standing shares of capital stock and holders , of bearei
shares, in the ratio of one additional share for each share
so held or represented by bearer shares of record May
28, 1958; rights to expire on Aug. 1, 1958. Price — 50c
per share.
Proceeds—For general corporate purposes
Including exploration and drilling expenses and capital
expenditures. Underwriter—None.
March 28 filed 6,000,000 shares of common stock

Trans-Eastern Petroleum Inc.
Feb.

27

stock

(letter of notification) 7,500 shares of common
(par $1) to be offered pro-rata to stockholders on

the basis of

—$4

per

one

share.

Office—203

new

share for 10 shares owned.

Pries

Proceeds—For drilling for oil and gas

N.

Main

Street,

Coudersport, Pa.

Under¬

writer—None.

it Triton Corp., Newark, N. J.
Aug. 1 filed $1,600,000 of 5% debentures due 1973, 4,000
shares of 6%
preferred stock (par $100) and 48,000
shares of common stock (par $1) to be offered in units
of $8,000 of debentures, 20 shares of preferred stock and
240

shares

of

stock.

Price—$10,240 per unit.
Proceeds—To acquire, own and operate interests in pro¬
ducing oil and gas properties. Underwriter—None. Tim¬
othy II. Dunn is President.
Twentieth

common

Century Investors, Inc., Kansas City,

Mo.

June 20 filed 2 000,000 shares of common stock (par $1).
Price—At maii.et.
Proceeds—For investment. Under¬
writer—Stowers & Co., Kansas

Twentieth

City, Mo.

Century Investors Plan, Kansas City,

Mo.
June 20 filed
of

$10,000,000 of plans for the accumulation
shares of Twentieth Century Investors, Inc. Price—At

market.

Proceeds

Stowers &

—

For

investment.

Underwriter—

Co., Kansas City, Mo.

United Asbestos Corp.,

Ltd., Montreal, Canada
July 29 filed 225,000 shares of capital stock (par $1) to
be issued upon exercise of options exercisable at $4 per
share.
Proceeds—To pay outstanding liabilities, to in¬
crease working capital and for
general corporate pur¬
poses. Underwriter—None.

•

stock.

.

Pres¬

900,000 shares of

com¬

Inc.

(letter of notification)
At par

—

300,000 shares of capital
share). Proceeds — For
lands. Office—574 Jefferson

($1

per

development of oil and gas
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.

•

Utah Power & Light Co.
June 26 filed $20,000,000 of

(8/11)
first mortgage bonds due
1988.
Proceeds—To redeem $15,000,000 of first mort¬
gage bonds, 5Y4% series due 1987, to repay $4,000,000 of
bank borrowings, and the balance together with further
borrowings under a bank agreement and cash generated
•

in

the business will be used to carry forward the

struction

program

con¬

of the company

and its subsidiaries
$43,000,000 for the period

amounting to approximately
1958-1960. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities &
Co., and
Smith, Barney & Co. (jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids—Expected to be re¬
ceived in Room 2033, 2 Rector Street, New York, N. Y.f
up to noon (EDT) on Aug. 11, 1958.

ic Varo Manufacturing Co., Inc.
July 28 (letter of notification) 15,000 shares of capital
stock (par $5). -Price—$6.90 per share.
Proceeds—For
working capital. Office—2201 Walnut Street, Garland,
Underwriter—None.

Texas.

it Warren Christmas Trees, Inc.
July 29 (letter of notification) 210,900 shares of capital
stock. Price—At par ($1 per share). Proceeds—To pur¬
chase additional equipment and for operating expenses.
Office —120
South Rancho Avenue, San Bernardino,
Calif.

Underwriter—None.

it Washington Investment Plans, Inc.
July 30 filed $20,000,000 of plans for the accumulation of
shares of Washington Mutual Investors Fund, Inc. Office
—Washington, D. C.
Western Carolina Telephone Co.,
N. Car.
June

6

fered
mon

89,391 shares of common stock to be of¬
subscription by holders of outstanding com¬

shares held.

one

new

share for each three

The record date is to be supplied by amend¬

Price—At

ment.

Weaverville,

filed

for

stock at the rate of

par

($5

per

share).

Proceeds—To be

applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction and conversion program. Underwriter—None.
Western Industrial Shares, Inc., Denver, Colo.
July 16 filed 1,000,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For investment.
Underwriter
Andersen, Randolph & Co., Inc., 65 So.
Main St., Salt Lake City, Utah.
•
—

Western Pacific Mining Co., Inc.
May 26 filed 564,000 shares of common stock. Price—At
par ($1 per share).
Proceeds—For capital expenditures
and exploration costs. Office—Santa Paula, Calif.
Un¬
derwriter—None.

Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to be offered
subscription by stockholders of record March 24 at
rate of one new share for each four shares held and one
additional share for the balance of such holdings in
excess of the number of shares divisible by four; also
for

share.

President.

is

Price—At par (10 cents per

Price

each

fixtures, equipment and office space, by
purchase. Office — Wilmington. Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., If

Ore.,

i

-

Utah Oil Co. of New York,

May 6

office furniture,
or

>

(letter of notification)

stock.

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
lease

Portland,

share). Proceed!
mining expenses. Office—305 Main St., Park City,
Utah.
Underwriter—Walter Sondrup & Co., Salt Lake
City, Utah.

Underwriter—

stock

common

of

—For

None.

Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-ceni
cumulative preferred stock (par $5) and 27,272 sharei

Griswold

<7'v v-.1';,,. ;"T7- " .'.-.W'•

-

Utah Minerals Co.

.

are

being offered to the President of the company). Price—
$60 per unit. Proceeds—For working capital. Office—

Albert

ident.

stock

share of stock and

Portland, Ora.

April 30,1957 filed 1,250,000 shares of common stock (par
16 cents).
Price—To be "supplied by amendment (exoected to be $1 per share).
Proceeds—For exploration
purposes.
Underwriter—To be named by amendment.

only.

series

Underwriter—None.

Uranium Corp. of America,

Thomas Paint Products Co.

debentures

/

Universal Oil Recovery Corp., Chicago, III,
June 4 filed 37,500 shares of class A common
stock. Price
—$4 per share. Proceeds—For exploration and
develop¬
ment of properties, and the balance for other
corporate

deposited. The

Dealer-Manager—Dillon, Read &

Calgary Co., Abilene, Texas

Underwriter—

it Universal-Cyclops Steel Corp. (8/26)
Aug. 5 filed $22,500,000 of sinking fund debentures due
Sept. 1, 1978.
Price—To be supplied by amendment.

80%

over

(par $1).

Price—$4 per share. Proceeds—To purchase equipment
and supplies and for
working capital and other corporate

cents).

working capital.

^-Southern California Edison Co. (8/25)
Aug. 4 filed $50,000,000 of first and refunding mortgage
bonds, series K, due 1983. Proceeds — To retire bank
loans and for construction program.
Underwriter—To
be

Texas

assured

stock has been

Trans-Cuba Oil Co.,

June 2 filed 70,000 shares of 5J/2% cumulative convert¬
ible preferred stock. Price — At par ($10 per share)

New York 6, N.

expires Aug. 8.

is

offer

common

Co., Inc., New York.

share for each three shares held.

any

exchange

of Middle States

selling stockholders. The company proposes to offer
the 1,174,716 shares for subscription by its shareholders

ance

Office — Houston. Texas.
Statement effective June 23.

Feb.

for each 100 shares of Middle States

common

The

..common.

tain

Price—To be supplied by amendment. Proceeds—To
pay
off demand note, to
pay other indebtedness, and the bal¬

work

None.

Exempt Bond Fund, Inc., Washington, D. C.

Gas

nessee

June 26 filed 1,998,716 shares of common stock (par
$1).
Of this stock, 1,174,716 shares are to be sold on behalf of
the company and 824,000 shares for the account of cer¬

new

Un¬

Tennessee Gas Transmission Co.
June 2 filed 1,084,054 shares of common stock
(par $5)
being offered in exchange for common stock of Middle
States Petroleum Corp. at the rate of 45 shares of Ten¬

,

one

ment

pay¬

Congress.

ing capital and general corporate purposes. Underwriter
Israel Corp., New York, on a "best efforts"
basis. :
/
\y.
;

at the rate of

Proceeds—For

working capital.

—$25 per share. Proceeds—For investment. Underwritei
—Equitable Securities Corp., Nashville, Tenn. OfferingHeld up pending passing of necessary legislation
by

—Rassco

Richwefl Petroleum

unit.'

per

June 20, 1957 filed 40,000 shares of common stock. Price

june 26 filed $1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denominations
of $500 and $1,000.

Price—$1,200

derwriter—None.

Underwriter—None.
Financial Corp.

Rassco

stock.

ment of short-term bank loan and

shares, 75,000 are issuable under the company's
Restricted Stock Option Plan for officers and key em¬
ployees, and 30,000 under the Employees' Stock Pur¬

common stock (par ons
cent). Price—$1 per share. Proceeds—For plant rental^
etc.; to retire corporate notes; for core drilling; fo»
working capital; and for other exploration and develop¬

(par $1) to be offered in units consisting of
principal amount of debentures and 26 shares

$800
of

Oct. 8 filed 1,500,000 shares of

stock

mon

41

United States Sulphur Corp.

June 25 filed $392,800 of 20-year 6% subordinate income
debentures due May 1, 1978, and 12,766 shares of com¬

common

chase Plan.

(537)

to

offered

be

holders

of

outstanding 5% subordinated,
five shares for

debentures of record March 24 at rate of

$1,000 of debentures then held. Price — $60 per
Proceeds—For working capital.
Underwriter—

None.

Continued

on

page

42

The Commercial and Financial Chronicle

42

Underwriter

Continued from page 41
Television System, Inc.

Wilier Color

general corporate purposes; Office—151 Adell Avenue,
Yonkers, N. Y.
Underwriter — Edwin Jefferson, 39
Broadway, New York 6, N. Y.
•

..

*

';

/

;

'

Y"VA

" •'^

\

'

r.y.

"...

.

Prospective Offerings
American-South African Investment
June 13 filed for permission to
investment

company

Co.

of Africa, has
investment in
the common shares of companies engaged in business in
South Africa, with particular emphasis on those engaged
in mining gold. The trust may also invest to a certain
extent in gold bullion. Underwriter—Dillon, Read & Co.
Inc., New York.
(Republic of)

country contemplates
bonds. Proceeds—Foi
electric power projects and other improvements. Under¬
writer—May be Kuhn, Loeb & Co., New York. Offering—Expected in October or early November,
July 15 it was announced that the
the issuance and sale of $30,000,000

i Basic, Inc., Cleveland, O.
Aug. 2 it was announced stockholders on Aug.
vote upon a refinancing program intended to

.

.

Thursday, August 7, 1958

preferred stock financing.

contemplates mar¬
and $7,000,000 securities in
Neither the exact date of the offering
company

offered has been
determined. Decision on these two points will probably
not be reached until mid-August or early September.
Central Hadley Corp.

special meeting
held on June 25, approved an amendment to the certi¬
ficate of incorporation authorizing an issue of 200,000
shares of 5%
cumulative convertible preferred stock
of the company at

The shareholders

a

Convertible into common stock at the rate
Proceeds—To retire outstanding notes

(par $10).

of $2.86 per share.
of

a

subsidiary in the amount of $768,000.
Louisiana

Central
March 28 it

Electric

Co.,

Inc.

announced that the company's financing

was

for the year 1958 anticipates the sale of both
equity securities (probably preferred stock)
aggregating approximately $5,000,000. Both issues may
be placed privately.
program

and

debt

Cincinnati & Suburban Bell Telephone
Co.
ized

the

000,000 each. Underwriters—Merrill Lynch, Pierce, Fen¬
ner and Smith; Paine, Webber, Jackson & Curtis; Smith,
Barney & Co.; White, Weld & Co.; and F. Eberstadt &

Co., all of New York. Offerings—"Santa Rosa" offering
expected in August; and "Santa Paula" offering later

(10/21)
was
sale

Consumers

Power Co.

Ripley & Co. Inc. (jointly).

ceived

Sept. 23.

was

&

loans

and

for

construction

program.

of

Panama

To

1959.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Smith and Kidder,

Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
Moore-McCormack Lines, Inc.
March 24 it was announced company plans to issue and
sell $24,000,000 of government insured bonds secured
by
a first preferred
ship mortgage on the liners S. S. Brasil

Underwriters—Kuhn, Loeb & Co.
Brothers, both of New York. Offering—Ex¬

?

outstanding debt and for Panama's
Underwriter—Lehman Brothers,

stockholders
•

r

•

later

this
.

.

one

new

year.

Underwriter—

"•

preferred share for each 20

ber.

common

Offering—Expected about the middle of Septem¬

.,

St.

Joseph Light & Power Co. 7
15

it was announced that the compauj plans to
$6,500,000 ip bonds or preferred stock "sometbyie
The stockholders. on May 21 voted pn
authorizing an increase in bonded indebtedness of $6,500,000, and an increase in preferred stock from 25,Q00
shares to 50,000 shares. Proceeds — For repayment .of
this

_

summer."

short-term

bank loans and for construction program.
Underwriter—For bonds to be determined by competi¬
tive bidding. Probable bidders:
Halsey, Stuart & Co. Ipc.;
Smith, Barney & CO./' Glore", Forgan & Co. and Bl^ir

& Co. Inc.

(jointly); White, Weld & Co.; Equitable Secu-

rities Corp. Last preferred financing was done
privately.

Aug. 4 it

.

Scientific. Instrument Co.

was

intended
"

to offer 17,000
standing preferred stock.

common

stock, of which it, is

in exchange for outUnderwriter—p^ine, Webber,

shares

Curtis, Boston, Mass.
October, 1958.
^

r

(Mass.)

reported company plans to issue and sell

109,000 additional, shares of

Jackson &

latter

:

Proceeds—To reduce bank loans. Under¬
writer—Blyth & Co., Inc., New York and San Fran¬

"

an

~

program.

.

★ Sanborn

the

^

shares held.

(8/14)

bonds

S. Argentina.

certain

road

basis of

-

and. sell

.

a

offered for subscription by common stockholders on the

or

announced the company plans to issue
undetermined amount of first mortgage

S.

announced

&

'

sion for authority to issue and sell 242,826 shares of new
series of convertible preferred stock (par $100) to -be

Montana-Dakota Utilities Co.

and

.

★ Public Service Co. of Indiana, Inc.*
July 30 company applied to the Indiana P. S/Commis-

mort¬
Proceeds — To

part of this year or in early

Probable bidders: Halsey, Stuart
Stanley & Co.
-'Y YYY
*

★ Peoples Gas Light & Coke Co.
v v /
Aug. 1 the directors approved a program for the offering of approximately $17,000,000 of additional- capital

-

.

was

(part in bonds and bal¬

New York.

invest¬

expected to be received by this company on
Aug. 14 for the purchase from it of about $4,275,000
equipment trust certificates. Probable bidders: Halsey,

year

stock).

(Republic of)

was

redeem

feeder

ment company "lans to offer to bona fide residents of
California 10,OH shares of capital stock (par $1). Price
—$10 per sharless an underwriting discount of 81/2%.
Proceeds—For investment.

are

company plans sale of an
bonds and/or preferred stock

public, offering is expected
approximately $26,000,000 external bonds. Proceeds—

market

May be placed privately.
bank loans and for working capital.

of

reported company plans about $250,000,-

bidding.

July 14 it

April

pected this Summer.



and

•

Master Fund, Inc., Fairfield, Calif. t
Jan. 27 it was announced this newly organized

gage bonds.

was

common

ton, Mass.

and Lehman

notes

in

cisco.

on

amount

financing late this

stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬

term

Co., Los Angeles,

reported

was

Co. Inc.; Morgan
'

are

that company plans to issue
$11,000,000 of first mortgage bonds later this year. No de¬
cision as yet has been made as to the procedure the com¬
pany will follow.
Proceeds—For repayment of shortreported

&

Proceeds—for construction pro¬
gram. Underwriter—For bonds to be determined by com¬
ance

currently considering refinancing $790,- ;
outstanding notes ($658,750 held by a principal

in

Staats

R.

Pacific Telephone & Telegraph Co.

000 of

Laboratory for Electronics, Inc.
Henry W. Harding, President, announced that 1

i Equitable Gas Co.
July 18 it was announced that the

Service Co.

•

July 31 it

July 3,

Stuart & Co. Inc.; Salomon Bros. & Hutzler,

ably preferred stock, to secure approximately $5,000,000
Proceeds—Together with $7,000,000
from private sale of 4(&% bonds, to repay short-term
bank loans and for construction program. Underwriter*
—May be The First Boston Corp.; Kidder, Peabody &
Co.: Merrill Lynch, Pierce, Fenner & Smith; and White,
Weld & Co., all of New York.

from it.of

year or early 1959. Underwriter
—(1) For bonds to be determined bv competitive bid¬
ding. Probable bidlers: The First Boston Corp.; Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc.; (2) For preferred
stock: Blyth & Co., Inc.
/,/' /.'

,

March 24 it

the purchase

latter part of this

in the

'

Midland Enterprises, Inc. "
March 28, company announced it plans to issue
before Dec. 31, 1958 $3,200,000 of first preferred

it

20

to

v

for

Pacific Gas & Electric Co.
March

None.

expects later

William

—

undetermined

stock

RR.

20

Hutzler.

Keystone Tax-Exempt Bond Fund
July 14 it was announced that this proposed fund will
be a continuation of the present Keystone Custodian
Fund, Series B-l. Underwriter—Lehman Brothers, New
York.
•"
•
*•
•' 7 V7

Pacific

Aug.

on

Pacific Automation Products, Inc.
July 23 it was reported that the company plans early
registration of about 125,000 shares of common stock.

.

Bids

was

&

petitive

★ Missouri

of additional funds.

(EST)

Blyth & Co., Inc. and J. J. B. Hilliard & Son.

repay

(8/20)

expected to be received by the company up to

are

$2,310,000 of series D equipment trust certificates. Prob¬
able bidders: Halsey, Stuart & Co. Inc.: Salomon Bros.

Kentucky Utilities Co.

than 200,000 shares of pfd. stock. Pro¬

Co.

announced that

Norfolk & Western Ry.

noon

Light Co.

Probable bidders: Morgan Stanley & Co.; The
Ripley & Go. (jointly);
White, Weld & Co. and Shields & Co. (jointly). Bids—
Expected to be received on Sept. 23.

it

•

Bids

by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Int.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co., Inc.; Equitable Securities Corp.

of

'

*

Calif." Offering—Expected around Sept. 15.

bidding.

24

r

determined

the directors

Co.

Stone & Webster Securili.es

Electric and Gas

State

was

Underwriter

First Boston Corp. and Harriman

March

"

(9/15)

Feb. 14 it was announced company plans to issue and
sell $10,000,000 of first mortgage bonds due 1988.
Pro¬
ceeds—For construction program.
Underwriter—To be

(9/23)

company

York

—

Power

&

approximately $7,500,000
from additional financing will be required for construc¬
tion expenditures for the balance of this year. The management intends to negotiate a new line of credit with, a
group of banks and expects to sell equity securities later
this year or in early 1959, depending upon prevailing
market conditions. Underwriter—For any common stock:
The First Boston Corp.. New York.

Sept. 15.

000

Oct. 1.

on

March 7 it

preferred stock presently outstanding. Private sale of
30,000 shares ($3,000,000) of preferred is planned.

Bids—To be re¬

in the year to issue and sell additional securities, prob¬

Halsey., Stuart

New

12, George H. Buck, President, said that com¬
plans to seil some $7,000,000 in new securities by
the end of this year in the form of first mortgage bonds
and preferred stock. Recent bond financing was made
privately. In event of competitive bidding for bonds or
debentures, bidders may include: Halsey, Stuart & Co
Inc.; The First Boston Corp. and White, Weld & Co
(jointly); Stone & Webster Securities Corp.; Blyth &
Co., Inc.; Drexel & Co. and Dean Witter & Co. (jointly)
The First Boston Corp. and White, Weld & Co. (jointly)
underwrote last common stock financing.
There is no

Underwriter—May be determined by competitive

Gas

(EDT)

was

Kansas

Underwriters
bidding.' Probable
Inc.; Eastman Dillon,

by competitive

Corp. (jointly); White, Weld & Co.; Harriman Ripley .&
Co. Inc. Bids—Expected to be received up to 11:30 a.m.

pany

ceeds—For expansion and improvement of service facili¬
ties.
_

determined

Union Securities & Co. and

Hackensack Water Co.

announced that the company plans to issue

more

be

bidders:

Corp.; and Salomon Bros. & Hutzler and Eastman Dillon,
Union Securities & Co. Bids—Expected to be received
on

Underwriter—None.

fund debentures and to repay bank loans.

outstanding $17,000,000 issue of 4%% bonds due 1987.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Smith and
White Weld & Co. (jointly); Stone & Webster Securities

-

Consumers Power Co.

July 17 it

"

announced that the company plans to
and sell $17,000,000 of first mortgage bonds due
Proceeds
Will be used to retire its presently

issue

j

owns

$25,000,000 of 25-year sinking fund debentures. ProceedsL-To refund $15,000,000 outstanding 5*4% sinking;

•v

a

Gulf States Utilities Co.

July 28 it

shares.

the basis of one new share
American Telephone & Tele-

over 80% of the 3,504,809
Price — At par ($100 per share).!
temporary loans made to finance the

Co., the parent,

—To

Oil

on

five shares held.

★ National Fuel Gas Co. (10/1)
Aug. 4 it was reported company plans to issue and sell

announced company

was

Interstate

capital stock

company's expansion program.

7'.'77

(formerly known as
Co.) intends to obtain a minimum
of $2,000,000 and a maximum of $5,000,000 via an offer¬
ing of new shares of common stock to stockholders in
August or September. Proceeds — For working capital.

June 5 it

(9/*3)

Harriman

and sell not

reported

24, 1958 for 700.961 additional

Oct.

before

or

Proceeds—To repay

-

Gulf Interstate Co.

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; White, Weld & Co. and
Shields & Co. (jointly); The First Boston Corp. and

'

was

was

outstanding

.

was

on

graph

secondary offering of common
voting stock is expected in near future. UnderwritersMay include: Blyth & Co., Inc.; Carl M. Loeb, Rhoadea
& Co.; Hemphill, Noyes & Co.; Smith, Barney & Co.;
and Merrill Lynch. Pierce, Fenner & Smith.

announced that the company plans to issue
and sell not more than $40,000,000 of first mtge. bonds
due 1988. Proceeds—For expansion and improvement of
service facilities.
Underwriter—To be determined by
July 17 it

of

Great Atlantic & Pacific Tea Co.
Feb. 19 it

21.

Oct.

v/V:':YY'

June 16 company stated it will sell bonds and/or com¬
mon stock in the last
quarter of 1958. Underwriters—

announced that the directors have author¬
of not exceeding $25,000,000 debentures
having a maturity of not more than 35 years. Proceeds
-r-To repay advances received from American Telephone
& Telegraph Co. which owns 29% of the outstanding
common stock of the company.
Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Glore,
Forgan & Co. and Eastman Dillon Jnion Securities &
Co. (jointly). Bids—Expected to b*r«»^:ved on or about
July 7 it

on

shares

March

Electric Power Co.

the nature of the securities to be

nor

scribe

Line Inc.

plans to issue approximately $18,000,000 of
government insured bonds secured by first preferred
ship mortgages on the new "Santa Rosa" and "Santa
Paula." The financing will comprise two issues of $9,-

(9'30)

Co.

& Tele.

announced company plans to offer to its
stockholders of record Sept. 26, 1958 the rigths to sub¬

July 29 it

Company

1988.

28 will
replace
present mortgage debt and preferred stock with a new
note and two new issues of preferred stock, to provide
about $3,325,000 of new money with which to complete
plant improvements under way since early this year,
retire bank loans that had been made to finance the
improvements, and provide additional working capital.
Underwriter—Hallgarten & Co., New York, handled last

October, 1958.

Grace

Gulf

July 14 it was announced
keting between $5,000,000

Mountain State Tele.

competitive bidding,

for each

become registered as an

of the closed-end type under the
of 1940. Business—The trust,

incorporated under the laws of the Union
been organized to provide a medium for

California

If determined by

in year.

Investment Company Act

Austria

—

bidders may be Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith, and White,
Weld & Co. (jointly); Blyth & Co., Inc.; The First Boston
Corp.; Lehman Brothers.
probable

April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 shares
are to be publicly offered at $3 each.
Proceeds — Foi

;

.

(538)

Offering—Expected'in

★ Sears, Roebuck & Co, r 7/«/
* ' : ~ Y >
Aug. 5, Charles. H. Kellstadt, President, announced-that
the.company will issue and sell $359,000,090 long-term
debentures. .Proceeds—To expand retail and (mail order
activities and to retain

a larger portion
of. fhe company's
receivable... Underwriters—Goldman,-. Sachs- &
Halsey, Stuart & Co. Inc. and Lehman Brothers,

accounts

Co.,

all of New York.
•

Offering—Expected in September/

South Carolina Electric & Gas Co.

Aug. 4 it

(9/10)

••••

••

was reported company now plans to issue and
sell $10,900,000. of first mortgage bonds due 4988. Pro¬
ceeds—For construction program. Underwriter—May be
determined by competitive bidding.
Probable bidders:

Volume

188

Number 5766

.

.

The Commercial and
Financial Chronicle

.

(539)
Halsey, Stuart & Co. Inc.; Kidder,,Peabody &
Co.; East¬
man, Dillon, Union Securities &
Co. f The First Boston
Corp- and Lehman Brothers (jointly).

Laird Bissell Adds

DIVIDEND NOTICES

Southwestern Bell Telephone Co.
(9/30)
July Id it was announced Missouri Public Service Com¬
mission-authorized the company to issue
$110,000,000 of
35-year debentures. Proceeds
To refund
outstanding
issue. Underwriter
To* be
determined by competitive
bidding. Probable bidders:-Halsey, Stuart &
Co. Inc.;
Morgan Stanley & Co.

HAVEN, Conn.—David

Bennett
staff

has

been

added

of

Laird, Bissell &
Whitney Avenue.

44

—

to

R.

The

Co.

(Indiana)!

't

!

ness

Jacob

HARTFORD,

Bornstein is

with F.

.T.

Conn.—

Co.,

has

55

1958,

DREWRYS

,

.

;v.r

in

•

i

have been declared

i"'

♦isvirt

''
•

sixty cents

financing involved

dollar

Both

is in the

neighborhood

of

$250,-

&

Light Co.

•

/ Wisconsin Public
was

($1)

the

at

August 21,

decided

on.

per

quarterly

v

close

of

18; 1958.

PREFERRED STOCK DIVIDEND
Board

of

quarter

Directors

ending

DIVIDEND

"120th consecutive
dividend

20, 1958
6,

share

AMERICAN

on

the

The directors al'so declared

for

1958

regular
of

$1.50 per share

or

.

of

August 11,

G. F.

the $5.00,

stockholders of record

Sep¬

tember 18,

19581
EDWARD L. JOHNSON,
July 24, 1958
Secretary

Secretary

Pittsburgh, July. 31, 1958

Preferred Stock of, this Com-

IS.OflF Sinking

Stock. $1.25
Convertible Pre¬
ferred Stock, Series A & B,
all' payable October 10,
1958,

'on

to

Cronmiller, Jr.

Vice President and

dividends
the $4.75 SinkPreferred
Stock.

on

ing
Fund
$1.25 on, the

a

1958 to shareholders
1958.

quarterly,

£U8%.

FundT Preferred

DIVIDEND of $.45 per
COMMON STOCK, payable

on

record

STOCK

30,

ONE-HALF

to shareholders of record

September 2,

July 29, 1958 a quarterly dividend of
and' three-quarters per cent was de¬

declared

and

1958.

Also declared

PREFERRED

ONE

PREFERRED STOCK,
payable Octo¬

ber

CAN COMPANY

has

September

of

(11/2%) PER CENT
on

October

clared:

on.

business

I......

On

t

1958.

August 6, 1958.

one

dividend of 25 cents a, share
Common. Stock,, payable
October. 10;, 1958,. to- stock*
holders of record September

i

share

WILLIAM FEICK, Jr.
Vice-President and Treasurer

Sany,
October
1958of tobusiness
Stockolders payable
of record
at the1;, close
September
remain

12, 1958. Transfer books
Checks wilt be mailed.

will

open.

JOHN R. HENRY, Secretary

The

Service

I AMERICAN
:

PHELPS DODGE

:

of

securities has not yet
Underwriter—To be determined

been

by com¬
petitive: bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld & Co.; The First
Boston Corp.;

Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eafstman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler
(jointly);
Kuhn^ Loeb & Co., and American Securities Corp
(jointly),. (2) For any preferred stock—Merrill Lynch,
Pierce,. Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities &
Co., (jointly); Leh¬

m
•->

FINANCE CORPORATION

Cement

CORPORATION

•v

PACIFIC

n

«>
/

The
•

•

CORPORATION
DIVIDEND

DIVIDEND NOTICE
e

A

NOTICE

1958,

to

per

share

on

stock ($1U par

the

value)

J.

H.

third-quarter

divi¬

of Seventy-five. Cents (75$)

„

per

15, 1958,

was

this

declared by the

Board of Directors

on

share

on

the capital stock of

Corporation, payable Sep¬

July 30,

tember 10, 1958 to- stockholders

1958.

share¬

holders of record
September
12, 1958.

of record August 15, 1958.

ASMANN

b. c. Reynolds,

Secretary

M. W.

Vice President
& Treasurer

August 6, 1958

a

\

of Directors has

stockholders of record August

quarterly

1,

cents

dend

payable September 2,1958, to

dividend of 25$ per share on
the Common
Stock, payable
October

60

common

The Board of Directors has
this day declared a

Board

declared

regular quarterly dividend:

of

Corp.

announced

type

•••••••••••••*•••••••••

!

company plans to sell about
of new securities in the last half of the cur¬

year..

share

per

company

was

by competitive bidding
Probable bidders: Halsey, Stuart & Co.
Inc.; Smith,
Barney & Co. and Robert W. Baird & Co., Inc.
(jointly);
Equitable Securities Corp. and Eastman
Dillon, Union
Securities & Co.. (jointly);
White, Weld & Co., Kidder.
Peabody & Co. and Salomon Bros. & Hutzler
(jointly);
The First Boston Corp.
Offering—Not expected until
late in 1958 or early in 1959.

812,500,000

Plaza, New York 20, N. Y.

Quarterly Payment
The Board of Directors of
Seaboard Finance
Company
declared a regular

are
payable Sep¬
15, 1958 to stockholders of

>

announced, that company
plans to issue
and sell $10,000,000 of first
mortgage bdnda. Proceeds—
To retire bank loans and for construction
program. Un¬
derwriter — Ta be determined I

rent

August 1 k, 1956;

on

94th Consecutive

dividends

tember

pro¬

being negotiated between the

previously incurred.

March 4 it

of

cloee of busi¬

COMMON STOCK DIVIDEND

follows:

a

Power

10*.

stockholders

at the

finance

$4 Cumulative Preferred Stock
one

-j'.-;-

000,0001 The purpose is to restore
government balances
which have been reduced
by the repayment of excessive
short term
obligations
March. 17 it:

as

($.60)

syndicate

Wisconsin

•

URQUIIART,
Treasurer,

•

July 30, 1958

man

Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co
Inc. (jointly); The First Boston
Corp.; White, Weld A
Co.; Kidder, Peabody & Co.
Wizard Boats of Tennessee, Inc.
July 28 it was reported that the company plans an offer¬
ing of 150|000 shares of common stock and 75,000 war¬

Allied Chemical

fj^Sr

gg*

"

_

.,

rants,/which

|hty

SERBORRD

U. S. A. Inc.

Common Stock*

record

The Chase Manhattan
Bank^Tlie First National City
Bank of New York, and Bank of
America National Trust
& Savings Association.
The Chase Manhattan Bank will
be the fiscal
agent for the credit. The amount of
the

/•U>fv*

oa

(40)*

:

are

y

30 Rockefeller

JEANNERET,
Secretary and Treasurer

QUARTERLY DIVIDENDS

with the two investment
syndicate of commercial banks in
the United States,
Canada and the United
Kingdom.
The three institutioxis which
are to head this

new

ness

South Band, Indiana

cooperation

and

forty

share

September

on

to

record

T. B.

July 1 the Government-announced that'
Kuhn, Loeb &
Co. and:
Kidder, Peabody & Co., both of New
York, have
been selected as
financial advisors to
develop a financial
program for the country.
As a first step in the

gram a short-term credit is

Drewrys Limited

New York 20, N. Y.

at

-

3

(Government of)

banking; firms

of

t

stock, payable September 10,1958*
to
stockholders of record at the close
of business on
August 22, 1958.

the flintk0te company

Union Electric Co.,: St.
Louis, Mo,
March 28 it was annouheed
company plans to market
about $30,000,000 of cohimon
stock in the latter
part of
this year or in the first
quarter; of 1959.* Proceeds—For.
construction program..-."
,V.
?
...
u

government

dividend

a.

capital stock ot

per snare for the third,
quarter,
of 1958 has been
declared on the com¬

addi¬

(approximately 105,488 shares)

-

Venezuela

quarterly

cents

the

cents, per

payable

OIVIDEND NOTICES

■

1

on

31, 1958. This dividend to

r.

Co.17

held, prob¬
ably this fall. Long-term
financing is also being con¬
sidered,
Underwriter—Kidder,-/Peabody
&
Co., New
York.
'
'
'
* "
'
*
V-v..-

jkmrt)

mon

share for each, 12 shares

new

declared'

Cash Dividend

A

new

The Board o£ Directors

_

some

one

1958.

Farmington Avenue.

Aug. 4; J. W. Crosby,
President,' announced company is
planning to offer to its common stockholders
stock

in

ALEXANDER, Secretary

1000

company plans registra¬
today (July 7) of about $1,000,000 convertible
pre¬
ferred stock.
Underwriter—R. S. Dickson &
Co., Inc.,
Charlotte,. N. C.

Thiolkol Chemical

STANDARD! OIL COMPANY

1958.

(incorporated.

H.

affiliated

now

Andrews &

July 30,

tion

the rate of

August 15,
D.

it Stevens Markets, Inc., Miami, Fla.
July 31 it was reported that

common

on

■

WEST

a

per

corporate

Underwriter }— Morgan

.

tional

of Directors has declared
dividend of fifty-five cents

payable on September 12,
1958 to
stockholders of record at the close
of busi¬

(Special to The Financial
Chronicle)

Stanley & Co., New
York.. Offering—Expected in the
early Fall.
.1

•

Board

quarterly

With E. T. Andress

i

Manufacturing

Company

Meeds.

share

July 3t> it was announced company has under
considera¬
tion long-term
financing through: a public offering of
ap¬
proximately $200,000,000 of debentures... Proceeds—Prob¬
ably for expansion, working capital and other
purposes.

The Singer

the

—

Standard Oil

DIVIDEND NOTICES

(Special to The Financial
Chronicle)

NEW

are

expected in units of

one

common

Corporation

share

and one-half warrant.
Price—$2 per unit. Underwriters
—Clark, Landstreet & Kirkpatrick, Inc. and W. N. Estes
& Co.,; both of
Nashville, Tenn.

DIVIDEND NOTICE:

YALE &.TOWNE
Declares 282nd Dividend

DIVIDEND

Quarterly dividend No. 150

\7Vif

of $.75 per share has been

declared

on

the

Stock, payable

NATIONAL UNION

Common

record

On

September

August 15, 1958.
OF

Secretary

Cities' Service

J

pany

the

Company has de¬

of Directors out

of past earnings,

com¬

payable




erlb g. christian, Secretary

on

share

| at thecioseof business

a

cash divi¬

Fifty Cents (504)

a

paid September 24,

September 10,1958.

close of business August

28,1958.

Wm. H.MATHERS
Vko-Presidont and

holders of record at the close of.business
August 15,1958.

/.

was

1958 to stockholders of recordatthe

clared* a quarterly dividend of
sixty cents ($.60) per share
on its Common
stock, payable September 8,1958, to, stock¬

/ /,'/".

share

capital stock. This cash divi¬

dend will be
The-Board of Directors of-Cities Service

per.

October 4,1958^ to
stockholders of record

today declared

dend of
on

thirty-seven

declared by the Board

DECLARATION

The Boo ret of Directors of this

D i v i die kdNotice

July. 31,1958,
of

PITTSBURGH, PA.

147th DIVIDEND

Share

I and one-half cents

COMPANY

Richard F. Hansen

July 29, 1958

a

dividend No. 282

FIRE INSURANCE

10, 1958, to stockholders of

-

431

Continuous Cash Dividends Have Boon
Paid Since

toamrir

Organization in 1920

AuQU»t.5> 1968.

me

YALE A TOWNE

Secretary

mfc.cot

Cash dividends pa id In
every, yea*, since USB

-

I

The Commercial and Financial Chronicle
44

.

.

Thursday, August 7, 1953

.

(540;

Growth Patter:

BUSINESS BUZZ

Los

Washington...

-

Angeles, Calif, (paper).

from the Nation'*

Chilton

Yl/f

;

jljL I l/M

Capital

Profit—

IIow to Mark Goods for a

Company,

Chestnut

^

Behind-the-Scent Interpretation!

Dynamic Los

The

Metropolitan
AreaRobert R. Dickson—Union Bank,
Angeles

JL

Mf

Streets,

56th
and
Philadelphia

39, Pa., $1.25.

Japan's

Today

Economy

—■

Bro¬

chure—Boni, Watkins, Jason &
Co.,
York

; WASHINGTON, D. C.

—The

sale

in Wash¬
ington, recognized today as the
news capita] of the world, is the
14-story National Press Build¬
ing with 1,003 offices.
Nearly
300 of these offices are occupied

center

of journalism

Publisher

obvious from our

field

has

Washington

However,

of newspapers

The demise

a

,

periodical

On the 13th floor of the Pr®ss

out

Building is the 50-year-old Na¬

club, of course, is
operated entirely separate from
the building corporation. Along
-this bar for weeks now there
The

only
•

been

United

Federal

that

United

three

condolences

to

Douglas

controlled

also

cation.

the
to

New

Orleans

chairman

been

of

came

ly he offered

a

its

to

assets

see

been

so

the

to

the

Department

States,

realizes

that

radio

;

Publishing

the

advertising.

Company, publisher of the 121-

overhead

of

newspapers

year-old

greater.

influential

Picayune,"

publisher of
paper.

une"

afternoon

an

also '
news¬

the "New Orleans States."

While
were

morning
and

sold

for

assets

the

of

"Item"

to the "Times-Picay¬

$3,400,000,

the

first

"over

the

able to

idend

earn

economic
no

do

so

before

Sept.

15, 1958, by >

paying the PublishingXompan.v
S3,400.000. plus

any

expense




in¬

where

publications of
and

newspapers—morning

evening
same

is

—

done

the

under

roof.

Foreign

,

and may or may not coincide

the "Chronicle's"

own

with

way

newspapers

a

costs
have

port

daily

of

for the

they

have

a

1, N. Y., 30£.

ing articles
in

on

—

Contain¬

Value Judgments

the

Classroom; Government
Sets
a
Pattern; Readjustment
Without
Inflation;
European
Economic
Integration,
etc. —
Foundation

cation,

message

son,

<

for

Inc.,

Economic

Edu-

Irvington-on-Hud-

answer

to

I

Commerce of the United States,

Economic Research Department,

field

plight

Washington

more

of

them

for
to

single ownership

or

more

and

merge

into

have

we

of
the

in

our

comrades

long
the

across

Street

is

pri¬

at least be

6,

$1.00
(quantity
quest).

53th

Annual

Convention

V.F.W., which will be held

opportunity

show

the

veterans

the

extent

to

of

the financial community's interest
in their affairs.
Through the co¬

operation of the Downtown-Lower
Manhattan
York

Association, the New
Exchange and nu¬
ip every phase of
activities, we can prom¬

Stock

leaders

merous

downtown

ise that the 'Salute to the V.F.WJ
will mark a memorable feature
of

the
"We

the daily newspaper publishing

is

active

are

in New York City this year, pro¬
vides a splendid

N. Y., 50£.

Fringe Benefits 1957—Chamber of

It could be that the

-

York

"newsy", &

readership.

Women Graduates, Class
S. Department of

1956—U.

Freeman, August 1958

in the yesteryear. The ad¬

because

on

Re¬

Labor, 341 Ninth Avenue, New

dying industry. On the con¬
trary, newspaper readership is
growing.
Circulation is at an
all-time high. - Newsprint pro¬
duction
appears likely to
ex¬
pand substantially in the future.
Newspapers are generally much
improved today over what they
are

served

Many

overseas.

that Wall

"The

College Women Go to Work:

a

vertising columns

V.F.W.

have

a
facility
enabling the
people of America to participate
voluntarily in the processes of
free enterprise.

weekly, are far from being

were

310,

who

opportunity to demon¬

an

country
marily

"Dying Industry"
newspapers,

an¬

Post

securities field and

being

rising

the

by

some

men

members

strate to

newspaper
are

Street
of

nation

sought

a

the

by
his

with

stated:

"Wall

intermittently
Many thousands
in

delegates

connection

consists

are

stockholders

the

nouncement, Commander Murphy

views.]

Or¬

in

to

In

Actually,

consolidations

York

New

Exchange.

business consolidation.

than

the

Exchange
has completed
arrangements for conducting
V.F.W. delegates and their fami¬
lies on a guided tour of the Ex¬
change.. A colored movie will be

our

little

a

Wars,

Stock

shown

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital

communications

been

However,

in

V.F.W.

Convention.

hope that

Wall

Street

our many

will

be

friends

able

attend the band concert and
mony

of

to

cere¬

welcome."

C. (paper),
prices on re¬

D.

TRADING MARKETS
American Cement

Botany Mills

The
far
*

Wurlitzer Co. Com.

Fashion

,

doubt

from

should

than

the

the

of

United States

do

than

even-keel

average

series

of

cARL Marks

Envelope
Morgan Engineering

get

Some
a

from

of

higher

rate

company

their

companies.

them

move

&

C.o Tur

National Co.
Cormac

FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET

risks.

their publishing

stocks

be

Park

Indian Head Mills

stockholders,

little higher div-.

a

stock, because

corporation who
can

is

]

of

counter,"

rate

the

"Item,"

will

who buy their newspaper stocks

person, firm or

buy

;

...

•Thousands

wants

to

rea¬

costs

stations, which can
operate so much cheaper than
newspapers, are competitors in
of

-

8

page

television

field

"Times

less

two

It stands to

production

average

and

for

and

be

that

of the

Justice

of

from

plant.

the

Not

years.

The

son

single

been unable to pass along.

and

publication

Time will tell.

a

our

many

loyal

from

more

affected

the Supreme Court of the United

of

buyer. Final¬

Picayune

-

board

Mr. Stern had long

looking for

Times

the

have

which

its anti-trust, division has
authority and is not inter¬
ested in trying to do anything
about newspaper mergers where
one newspaper is losing money.
Of
course
the
same
principle
applies to other types of busi¬
ness, be it a shoe or dress fac¬
tory or a cement plant.
The
Justice Department, as well as

J. David Stern, 3rd,
published the de¬
Philadelphia
"Ledger,"

the "Item."

field

of

no

light.

was

the

New

at

companies apparently

says

com¬

whose father
funct

in

taking place.

a

Large Overhead
,

"Item"

of

daily,
weekly
or
Unlike any other cor¬

have

many

(Scripps

city

leans

smaller

and

sad

demise

It is sad to

merger

people lose their jobs, many of

majority

a

the

projected

similar

organization,
a
news¬
the character
of the people who devote their
efforts and talents to its publi¬

of the
.stock
of the morning
Cincin¬
nati "Enquirer"), the plight of
owns

dailies.

published

Incidentally, many people in
Washington were surprised sev¬
eral months ago when the dis¬
tinguished
New
York
Times
Company disclosed its yearly
net earnings amounted to a lit¬
tle in excess of $3,000,000, and
only about half of it came from
the newspaper. The other came
from the company's paper mill
operations.
*
These recent mergers and the

spectacular

or

represents

paper

A week before Cincinnati be¬

pany

three

were

porate

losing

newspaper

where

newspaper,

than $1,000,000.

one

newspapers

something

about

monthly.

The New Orleans "Item"

a

Miami,

circulation,

is

There

tragic

'

came

Louisville,

daily

and five

four

faithful

more

of the

None

like

Atlanta,

there

ago

"Times-Star"

dropped

dailies.

general

whom

been

Jackson,

be

but two

with the Cincinnati "Post." The
had

That
Miss.,

newspapers.

cities

years

money since 1952, and during
the past fiscal year alone had

1

with

ex-

newsmen

Allen, Washington cor¬
respondent
of
the
Cincinnati
"Times-Star," and one of the
<549 employees affected by its
merger. The 118-year-old news¬
paper, with which the famed
Taft family was so long identi¬
fied, was sold to the E. W.
Scripps Company, parent cor¬
poration of the Scripps-Howard
Newspapers.
It was merged

•

would

have

M.

&

daily

city

of

recently

tended

with

land

to

of

South

KOf course, numerous other
St. Louis, Mil- j
waukee,
Dallas,
Kansas
City,
Buffalo,
Denver,
Minneapolis

International.

Press

More
r

unable

were

17,

"Salute to the V.F.W."

ies.

quickly absorbed most of them

York

Downtown to Mark

be

will

there

other city East of the

large cities like

Government

Terminal, New
(cloth), $4.95.

Y.

Continued

Memphis,
Birmingham, Nash¬
ville, have more than two dail¬

people lost their jobs, but for¬
both private industry
the

Orleans

Richmond,

tunately
and

pointed

New

two

other

able[ INS

Many

tral
N.

-

boss used

"It's not easy to goof off around here—the
to be in the submarine service!"

the Potomac that has more than

deep

Press.

have

the

States,"

one

Smitley—Fleet Pub¬

lishing Corporation, Grand Cen¬

%

HELP FIGHT JUVENILE DELINQUENCY-

van¬

could
if

Mississippi Iliver and

expressions of
regret, over the merger of In¬
ternational News Service, which
had been
losing money, with

have

that

Orleans

and Ha¬

here

between

bar

vana.

and Robert

"Item" is merged with the "New

tional Press Club with the long¬
est

tory of finance and speculation

ishing dailies, the authoritative

worried.

lot of people

.

fantastic his¬

A

—

SUPPORT YOUR LOCAL BOY SCOUT TROOP!

the

To further point up

duction and operating costs has

Is Mine

through the ages—Clayton Rand

newspaper.

the result of ever rising pro¬

as

World

daily

four

Street, New York

17, N. Y. (paper), $10.00

ownership. It said that
.which
before
had

1957—Ameri¬

Paper

122 East 42nd

Orleans,
II

of

Paper and Pulp Association,

can

both morning and

War

Avenue,

Statistics

takes its place as
No. 1,36*5 on the list of cities
and towns without a competing

signals have risen on the hori¬
zon.

Fifth

States

United

Adminis¬

and

Economic

of Jus¬
unique
"Editor and

newspapers,

storm

real

some

where

World

Building in 1927.

Press

cities

New

National

the

of

cornerstone

were

Economic

Aspects—Committee for
Development,
711
New York 22,
N. Y. (paper), 50£.

laid

were

the

Of

142

there

single

Calvin

ident

facts

advance

Security:

National

of

Some
trative

evening newspapers were under

tremendously since PresCoolidge laid the

^rown

x

are

in

-

Publisher," the publishers' and
advertisers' newspaper, recently
said
the latest count showed

approximately
1,100 people engaged in Wash¬
ington journalism. The journal¬

ism

Corporation,
75 West
New
York
6,
N. Y.
(cloth), $37.50. :

Street,

the Department

in

1958

Yearbook

lishing

PRIVATE

Dailies"

sale of the "Item."

other people engaged
in the news gathering field, be¬
there

these

of

All

tice

there

city

the

*

Currency

Edition—Franz Pick—Pick Pub¬

Problem

many

cause

competition."

come

"The Vanishing

before

in

that

"Item"

the

•

Elsewhere

Pick's

have
It is
offer to resell
we
still wel¬

competition.

welcomed

As¬

Manufacturers

sociation, New Center Building,
Detroit 2, Mich, (paper).

said flatly: "In the past we

foreign cities as London, Tokyo,
Moscow, Paris, Madrid, Man¬
chester, Sydney and numerous

are

Automobile

turned down
to buy the "Item."
John F. Tims has

Company

proposals

Street, New

Inc., 37 Wall
5, N. Y.
'

Motor Truck Facts 1958 Edition-

Times-Picayune Pub¬

The

lishing

by newsmen and women. They
not only represent every 'section
of the United States, but such

others.

Twice before the recent

curred.

TEL: HANOVER 2-0050

NEW YORK 5. N. Y.

TELETYPE NY 1-971

Photocopy Corp.

LERNER & CO.
Investment Securities

10 Post Office

Square, Boston 9, Mass.

Telephone
HUbbard 2-199<f

Teletype
BS

69