Full text of Commercial and Financial Chronicle : December 1, 1960, Vol. 192, No. 6008

View original document

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

Volume

Number

192

6008

New York 7, N. Y.,

Thursday, December 1, 1960

Price

Cents

Copy

■

AS; WE SEE IT

Editorial

thoughtful observer this at times appears to be
an almost
hopelessly"'divided world"—perhaps more so
than at any other time in
history. Of course, it is true

Factors Imply Interest Rate Rise

that such differences of opinion, of
policy and of pur¬
pose as now appear among the nations are magnified by
the fact that this is also a time of a
great deal of talk

By C. Richard Youngdahl,*

about

the

activities and programs

of other nations

requirements of law and order and its

demanded.

But be all that

it may,

one

Given
will

interests

own

upturn

any

pointing

in business by

probably be higher

nificant

scarcely

can

Executive Vice-President

the

this
in

ease

few

out,

Mr.

Youngdahl

intermediate

and

months—barring

any

business

generally

preference for short-terms. He predicts

professed philosophies

situation

when

time

it in fact

word

the

day

and

the

further; and

not

in the premises. Naturally these
public, but time and again
evidences of their existence become irrepressible.
Most of the countries with which the United States is,
or desires to be
closely associated in joint efforts to "con¬
tain" the communists, have had a much closer view of
what war really is — or was even in the 1940s — than
have we. What is more, all of them are much closer to
the Soviet Union and its rockets, to say
nothing of its

rate

enormous

conventional

horrible.

And

areas

most

are

old

hands

among

ficulty

among

buying intermediates and long-bonds.

has

"out

gotten

interest

ments

for

and

Jan¬

the year

ahead, and in that case the
a doubling-up of
pre¬

decade resulted in

dictions to tell

about the soaring

sixties.

chologically, the capital markets had
washed, particularly since the threat
along with the boom
minds.
or

was

been
of

Psy¬
brain¬

inflation

then very real in many

sense, many investors

were

oversold

underinvested, awaiting further developments.

But market and
business psychology was only
part of the high interest rate
story.
Pressures of
credit demand were
most

all

After

the

rate

Turn in Interest

year

1960

make

United States.

Bill rates

and

area

sprinkling
term

January. Short-term rates started to recede
began to flow more heavily into that
market, particularly from corporations, individ¬
uals, and states and municipalities.
Soon, through¬
out the entire range of our credit
markets, yields
began to edge lower. By early
February the pic¬
ture became more
definite, and the declines in
yields accelerated.

returns

this

level.

were

generous

intermediate-

of
Treasury

fered

world

securities

of¬

curities

available

turning

markets
C. R.

Youngdahl

the

point
more

in our credit and capital
noteworthy because it took

place despite

a huge demand for credit of all kinds
entirely without benefit of any reliable indi¬
cation, statistical or otherwise, that activity in our

and

yields of over 5%%
while
outstanding
long-term
Treasury
issues
reached market yields of more than 4%%.
These yields developed as a result of a combina¬
were

money

This

slightly
above
the long-term

capital markets, new issues of
the highest-grade corporate se¬

the nations. The latest evidence of dif¬
us—which without (Continued on page 28)

Rates Last Winter

money and

half of

essential background for ap¬

in the 5%

our

capital markets, however, a
marked change began to take
place in the second

develop¬

praising the outlook for 1961.
Early this year interest rates
reached a
peak level
in the

politics, and are inclined to regard us as a "Johnny-comelately" in the field. It is hardly strange that difficulty
is encountered in developing a close unity of policy and
action

event the unusual fea¬

any

military forces. They are, too,
where modern warfare is most
them

cycle

tures

living in congested

investors'

end

phase" with the business cycle.

aired in

not

other

$5 billion Federal

outlook

vate.

necessary

are

change in investors'
and

of dangers that could result if the Fed

warns

to start

were

about many things. It has long been evident that several
of the countries of Europe and more than one elsewhere
do not share the ideas of the United States about what is
and

banks'

December

fantastically heavy, from al¬
categories of borrowers, public and pri¬
the steel
strike, business activity, as
This past year has been another fascinating period
measured by almost
any indicator, had been ac¬
for the student of our money and capital markets^ celerating at a fabulous
clip, and indeed the pace
if not always for the participants.
of total economic
A few old rules
activity continued on to new
and relationships broke down a bit.
Some stu¬
high ground for several months in 1960. Credit
dents even say that the interest
demands of all kinds continued
very large.

capitals of the so-called free world about the need of;
joint action and full cooperation, it is increasingly evi¬
dent as the days pass that no such close
agreement exists

differences

and

sig¬
rates

minimum; explains why the Fed is
unwilling to allow short-term interest rate to decline much

from the

pour

views,

today.

further

interest

Last

were being subjected to the usual heavy
barrage of seasonal predictions about the business

deficit next year at the

presents itself.

continues

outlook

doubts

long-term

are

of unusual factors.

uary we

mid-1961, interest rates

hence than they

year

fail to be impressed with the wide contrast between the
world

tion

of Aubrey G. Lanston & Co., Inc., New York City

"cooperation" and unity of purpose. In the past,1
perhaps, it was not regarded as surprising that each peo¬
ple tended to go its own way, and paid only such atten¬
the

•,

The Economic Outlook and Other

To the

tion to

economy

was

because

part

inflation

a
turning point.
It occurred in
people began to wonder whether

was

indeed

(Continued

on page

22)

Underwriters and distributors of

SECURITIES

NOW IN REGISTRATION—Underwriters, dealers and investors in corporate

securities

afforded

tial

U. S. Government,
Public

Housing,

State and

undertakings in

complete picture of issues
our

now

"Securities in Registration" Section, starting

BANK LIMITED
Office:

Head

STATE and MUNICIPAL

PUBLIC HOUSING

AGENCY

32.

Lester, Ryons

AND

NOTES

623

So.

BONDS

STREET, S.W.I.

Members Pacific Coast

Offices

Government in: ADEN,

Branches

INDIA,

THE FIRST NATIONAL CITY BANK

PAKISTAN, CEYLON, BURMA,

OF NEW YORK

TANGANYIKA, ZANZIBAR,

BOND DEPARTMENT

KENYA,

30 Broad Street

UGANDA,

AND

SOUTHERN

RHODESIA

Bond Dept.

Net
To

Active

Inquiries Invited

on
Southern
California Securities

ESTABLISHED

New

United States Government Insured Merchant
Marine Bonds
and

International Bank for Reconstruction
and Development (World

Exchange

Block

CHASE

MANHATTAN
BANK

Pershing A Co.

HAnover 2-6000

BONDS
FOR

CALIFORNIA'S

BONDS & STOCKS

CIVIC

Inquiries Invited

IMPROVEMENT

Orders Executed On All

Commission

Bank)

THE

CANADIAN

Canadian

American

—

Cooperatives

Federal National Mortgage Association

MUNICIPAL

SECURITIES
Members

first

Correspondent

Federal Home Loan Banks

1832

DEAXiEJR,

New York Stock

York

Markets Maintained
Banks and Brokers

UNDERWRITER.

T. L. WATSON & CO.

Exchange
Exchange

Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beack,
Oceanside, Pasadena, Pomona, Redlavds,
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier
u

Teletype: NY 1-708

Dealers,

Exchange

ADEN, SOMALI REPUBLIC,

NORTHERN

New York 15

in:

Federal Intermediate Credit Banks

Banks for

Associate Member American Stock

KENYA, UGANDA, ZANZIBAR

COMPANY

Co.

Street, Los Angeles 17,

Members New York Stock

ST. JAMES'S SQUARE, S.W.I.

Bankers to the

NEW YORK

Hope

Federal Land Banks

California

Branches

London

54 PARLIAMENT

Exchanges

Stock Exchange
CANADIAN DEPARTMENT

MUNICIPAL BOND

Teletype NY 1-2270

gout/uvedt

company

BROAD STREET

NEW YORK 4, N. Y.

DUtECT

VIRES TO MONTREAL AND TORONTO

Goodbody
MEMBERS

page

of Securities of

26, BISHOPSGATE, LONDON, E.C.3.

HAnover 2-3700

DALLAS

Dealers in and Distributors

Municipal

DISTRIBUTOR

STATE, MUNICIPAL AND

registered with the SEC and poten¬

NATIONAL AND GRINDLAYS

CHEMICAL BANK

TRUST

BONDS

Securities
telephone:

are

•>

BRIDGEPORT

•

PERTH AMBOY

2 BROADWAY'
NEW YORK

Co.

NEW YORK STOCK EXCHANGE

1 NORTH LA SALLE ST.

•

*;;

CHICAGO

•

Dominion Securities
Grporation
40

DEPARTMENT

BANK OF AMERICA

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-3161

N.T. & S.A.

SAN

FRANCISCO

•

LOS ANGELES

Chronicle

The Commercial and Financial
2

Year-End Tax-Switch

"Call HANSEATIC"

Members Midwest

you.

Stock Exchange

pays

the

United

The

Stover

adopted

Corporation

most of which

Member

Associate

packaged

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

form.

Its

Wire System

products

are

Nationwide Private

d i

for

Stock

Monthly

our

Digest, and our other reports
that give you a pretty clear

the Japanese
as a whole.

picture of
economy
_

...

approximately

and

York 6, N. Y.

Telephone: BOwling Green 9^0187
is

This

not

offer or solicitation for

for any

orders

particular securities

Interest in

A Continuing

Fischer & Porter Inc.
Richardson Co.

organizations.

has

than

manufacturing

three

controlled

unable

centralized control of exand operations was diffi-

good

penses

Need Hard to Find

QUOTATIONS?

^c^of
stock

stock;

•

ceive

except

This

bound
you

$4)

all

well
Over

as
-

securities

"hard

those
the

Counter

will

monthly prices

listed

find"

quota¬

tions.
Write
WILLIAM

call:
DANA

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

restricted

eacil

The,, restricted,

convertible

into

Dealers

homeowner

water.

given

stock

• ganization of the company> is a

stock,

*U?iCJ.ent, ea-ed surplus

basis.

the study of

•

in-

circumstances

STREET

NEW YORK 5, N.

Y.:

SI GAR
Raw

—

Refined

—

Liquid

Exports—Imports—Futures

DIgby 4-2727

fr°m all..over the world, supplies
agencies

governmental

tors,

other interested parties, and

and

main¬

staff of experienced scien¬

tists

INC.,

who

throughout

speak

the

Capitalization
Common

Class
r

tors

follows:

was as

$1,768,049-

Debt—

stock

stk.

com.

283,760 shs.

par—_

297,200 shs.

par

Common stock and class B com¬

stocks

mon

identical, except¬

are

ing for dividend status. The com¬
mon
stock is entitled to receive

dividends at
un¬

that

times

in
opinion,

ment-held

rate equal to four

paid

the manage-

class B. The class B is

convertible into

common

recom¬

its

mend

about

were

liabilities

Long-term

assets
of
3.2 times
$1,567,235.

Current

good.

current

saturated,
my

April 30, 1960 (fiscal year)

$4,957,803

that

should

company's financial position

was;

company
its future

con¬

bility,

to
Thos.

sta-

convert

year

good
business

their

units

saje

soft,

class

starting July 1,

When

consists'

w;th every
.

the

solicitation of an offer to. buy, any security

CARE

made

its

Put)lic offering of stock inT

February of 1960 it announced its

years,
-

Over-the-Counter

Quotation Services
for 47 Years

growing from $5,376,139. for
~

...

National Quotation Bureao
Incorporated
Established 1913

ended April!
by the com-;
Continued on page &

; '
*
•' Earnings for the year
offer to sel^ or, ' v. 30, 1961, are expected

referred to herein.)

- -

s hungry thru the
Food Crusade, New York

man-made impurities in our water
•

fbe world

1961.

company

e £reat population exodus to the fiscal year ended April 30,,
the suburbs) and the increasing 1955 to $10,343,803 for the fiscal
existence
of
both
natural, and: year ended April 30, 19LJ0. Net

be construed

...

food and friendship
$1 package you send

supply

cent trends in homebuilding (with

give

have agreed not

pure

designed

You

except at the rate of one-third per

Lynch, Jr.

income and continued growth.

Culligan's

time

shares of class B

seeking

relative

stock at

share for share
basis; however, holders of 262,298
any

v.
no

WALL

9 9

samples

water

analyzes

stitute

(This is under

LAMB0RN & CO., Inc.

$12y4

commo.n mainly of the manufacture and

common ,is

earnings have

N. Y. 6 COrtlandt 7-5680

provided with assist¬

are

analysis service. The Culligan Soft
Water Institute, the research or-

...

sideration

re¬

cash dividend. The common
stock is expected to be initially put on a 65 cent per annum
Stover's

Investment Bankers

111 Broadway,

in the form of complete sales

ance

those inves¬

common

Tokyo, Japan
Brokers

mainmain¬

intention of declaring a quarterly
dividend of YlVz cents per share
water to the home. Most,
share for share, at the rate
of of us, when we turu on the water on its common stock. Such divi¬
dends have been paid, with the
20% per year beginning in 1965.
faucet, take for granted the fact
It is anticipated that after the that
we
will
receive
pure
and; niost recent to be paid on Dec. 15.
Sales of the company have in¬
Christmas
season
the
company wholesome
water. However, recreased in each of the past six

stock.

to pay a

CO.

The

outlook

receive one-half the dividend

p+aid,

the

insures

goftfpotebte

currently

dividends.

common

Yamaichi Securities Co., LttL

Over-The-Counter

cannot

cash payment in any

2-9570

until 65 cents a share is paid
the common stock, then each

publication

the

common

year

may

give

stock

equal to the common stock in all
The restricted

year)

field

of common stock
public at $10 per
Oct. 5, 1960; and 400,000
common

units

fey the dealer dependent
the amount of service required.

This

Culligan, Inc.

and

the

restricted

Affiliate of

•

high level of operat.

Stowr

approximately

relatively

The

fil-

York, Inc.

of New

country on water conditioning at
and
Manager, Research Department, Frank, technical
society
meetings
c. Masterson & Co., New York City before civic organizations,

the

Durificati0n

customers' homes and

exchanging

write

Securities Company

dealers

equip¬

Yamaichi

consists

the

installing

Call

efficiency. A monthly charge
made

tains

common

■«

For current information

kits, training programs, national
advertising programs and water

J^selL Stover

stock

The

respects

Record

Russell

lHUMAs J. LiNLn, JR.

the

shares of restricted common stock.

Bank & Quotation

•

_nAnnc

into

convertible

notes

dealers

service

national authority

offered

—

share.

sub-

$2,500,000

stock;

common

per

tained

endi

200,000

(Single Copy

dealers

of possi-

bounds

250,000
YOU WILL FIND THEM

of the

CULLIGAN,

maintain.

ordinated

(Only $45

This

and

States

upward

the

franchised

1,100

United

world's
In May 1960 the three Russell leading
manufacturer and disStover
partnerships
were
pur- tributor of household water soft¬
chased by Russell Stover Candies, ening and conditioning units, is
Inc. The capitalization of the new my
choice as
corporation is composed of $3,- "The Security
I Like
Best."
000,000 senior notes with war¬
rants to purchase 50,000 shares of Past growth of

cult

...

bank borrowings;

term

■

branch offices

JAPANESE
STOCKS

Plan„known as "Culligan
Water Service," operated by
nrw.«,t«.d

Canada.

iq«i

the

yields 5.3% on the anticipated
dividend payment of 65 cents per

largely on shortand (2) a

and had to rely

f
qi

market

which to finance its growth

to our

Northbrook.

expandingPnnstantlv
that; they; are
constantly

within the

earnings

retain

was

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

successor

Soft

mature. The improved

trading in the

with

1529 Walnut Street

some

" "

that

view

vestor.

separate partnership. Under
this form of control Stover had
several major drawbacks:
(1) it

N. Y.

CO 7-1200

Since 1953, Stover
doubled' its sales well
while other publicly-owned boxed
]u
candy producers have shown only AllfJ
an
average sales increase of 16%
8*
during the same period.
Until recently the business was mon
controlled by three partnerships
(with
26
partners). Each of
ing processes.

Established 1914

Inc.,

started

results althat net
ready achieved, that net income
in the vicinity of $1.25 per share
of
combined
common
stocks is
in

lieve,

all phases of
and distribut¬

throughout
manufacturing

Denver, Colorado, was

BOENNING & CO.

Broadway

•

appears

its market

plants located
in Kansas City,
Missouri; Lincoln, Nebraska; and

Keyes Fibre Co.

New York 6,

Culligan,

top

the

f-'

■

market.

future

the

business

quality product at a cost
controls
already
evident
has always been should mean that higher sales
should
mean
higher
sales
that
the
basic
Stover policy. Stover wilL be reflected in, a favorable
uses only the finest ingredients, trend of net earnings. We beA

Stover's

Stouffer Corp.

115

agency

firms and other

ness

NY 1-1557

Mobile, Ala.
Direct wires

agement should receive more than
its

show

available

figures

gated $218,487.

The Nomura Securities Co., Ltd., and close quality control is maintained
61 Broadway, New

his¬

losses

business,

candy

reasonable price

...

C. L. Betzelberger

Stock Exchange

New York 6, N. Y.

New Orleans, La. - Birmingham, Ala

are

accounts located in trend
of
sales
will
continue, ment in the
drug
and
department stores probably at an accelerated rate,
periodically
throughout the country. Quantity during the next few years as the .
.
,
order sales are also made to busi¬
company's plants for
2,200

IN JAPAN

stores

tail

Opportunities Unlimited

19 Rector St.,

partnership loss, adjusted to make
the figure directly comparable to
the corporation's results,
aggre¬

re¬

company

Members American

HAnover2-0700

t ributed

through

York Stock Exchange

Members New

period, the four
111. - in ; 1936, manufactures a full
months ended August 31, 'I960,
line of equipment to solve every
sales increased 5.8% to $3,407,000
water problem in the hornet The
and the net loss was $16,843. In
the same four months of 1959 the company
is the creator of the

boxed

sold

Teletype NY 1-40

WOrth 4-2300

Steiner, Rouse & Co.

causing a larger de¬
pendence on water conditioning.
I think the field is wide open, and
supplies

for its first fiscal

and

coated

York 5

120 Broadway, New

Bought—Sold—Quoted

new

parative

chocolate

are

Stock Exchange'

American

the

items,

candy

City,

Co.,

31,

May

torically have occurred during the
summer months. The latest com¬

different

1920

Stern

Kansas

I feel that Culligan, with excellent
corporation has
products, a large franchised dealer
August 31 fiscal year.* organization and a young, aggres¬
of the seasonal nature of
sive
and
research-minded man¬

Because

than

period last year.

candies

manufactures

New York Hanseatic

ended

141,000 and adusted earnings were
up 68% to $184,000, from the same

States.

Betzelberger,

Brothers
Mo.

1960, sales increased 5.7% to $6,-

distributors of
fine

months

four

the

present position as one of
largest
manufacturers and

the

"HANSEATIC"

Established

has

was
grown

its

Just call

and

1923

founded

Over-the-Counter experience

Candies

Stover

Russell

500 issues.

over

Charles

1956.

ended Jan. 31, 1960,

(Page 2)
partnerships earned $538,768,
adjusted to the corporate form, Culligan, Inc.—Thomas J. Lynch,
on
sales
of
$19,815,000.
This
Jr., Manager, Research Depart¬
amounts to 90 cents per share on
ment, Frank C. Masterson & Co.,
New York City. (Page 2)
the 600,000 shares of both classes
of common stock outstanding. In

Russell Stover Candies, Inc.

Primary markets

Louisiana Securities
Candies, Inc.—

Stover

Russell

since

year

Alabama &

Participants and

Their Selections

the

Missouri

each

creased

For the year

City,

Brothers & Co., Kansas

Stern

service to

country, can be of

in which, each week, a different group

BETZELBERGER

CHARLES L.

private wire

system, reaching banks, bro¬
kers and dealers all over the

Write

Thursday, December 1, 1960

This Week's
Forum

of experts
In the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

A continuous forum

Problems?

Our nationwide

I Like Best...

The Security

Brokers, Dealers only

For Banks,

...

(2174)

1 '

46 Front Street
CHICAGO

NewYoit4rN.Y.
SAN FRANCISCO

Volume 192

Number 6008

The Commercial and Financial Chronicle

(2175)

Apply to Realty Syndicates
SEC

syndicates that should be registered

longer will countenance evasion of the statutes.

Articles and News
v;

Mr.

THE THREEPENNY STOCK
The Economic Outlook and Other Factors Imply Interest

the recent tax

amendment, the SEC head

affect the
He

partnership, the degree to which the amendment will

Rate

Rise—C.

Richard

Youngdahl

We'll

Cover

buy
is

—Edward

Gadsby

WALL STREET,

laws

—R.

Reproduced at the end of

governing syndications.

Heath

Larry

the

that
the

was

island
of

scene

of the most famous of real

with

swindles

the

victims. I also

Indians

of
one

estate
as

the

general investing public or a
relatively small group, all of the
members

which

the

•

tion

continuity
transferability

ent unit value ; '

of the land of V

hV the;.

t ch nii

skinned

highest in the
world.

number

ginn & company*

..i—_;

reason

form

rate

cast the

and

arrangement,

this

trustees

in¬

Government's Role in

'—Neil

was ,5,1t6

ness

own

real

the

promoters

vertised to the public.,'
Almost

estate.

From the time when I was in Wall

may

I recall it, a management
not interested primarily
in owning or developing real prop¬
erty.
as

company

These observations are no longer

completely valid. At the present
time, the securities of many com¬
panies which do nothing but hold,
develop or deal in real estate are
listed

changes

various

the

are

over-the-counter.
some

stock

traded

widely
There

ex¬

may

special psychological gratifi¬
in being part owner of a

cation

acoustica

united bowling
c

centers

H/Jacoby—

14 S

Cuba: A Lesson for American

;

baird-atomic

Investors—Roger W. Babson___ 19

i!Prospectus

request

V M

As We

real

also

39
Bank and Insurance Stocks

Businessman's Bookshelf

this

syndicated.;

coming

desert

involved

the

case

the

•

gain through

ment.

DIgby 4-4970
■

Einzig: "Ending Impasse With Bonn

J 44

Dealer-Broker Investment Recommendations

Ginn*

G. C. Dewey

Paying U. S.

Army Costs"

AIlegri-Tech*

From Washington Ahead of the News—Carlisle Bargeron

of
of

Indications of Current Business Activity

Amer. Int'l

*Prospectus

Funds

Mutual

NSTA-Notes

investors
capital

Bowling

request

in
43

Singer, Bean

long-term increase
on

BBM Photocopy

our

in land values rather than an

return

Broadway, New York 5

land

Obviously,

object

realization

mediate

Coming Events in the Investment Field——

Moreover, ■ as
syndicates

been

of cactus.

was

...

"improved" only by a spectacular

growth

J.F.Reilly&Co.,Inc.

Cover

—

estate

recently

project
attention

(Editorial)

unimproved real es¬

spread,

tate has

See It

their

Banks

News About

Bankers

and

im¬

invest¬

Observations—A.

Wilfred

May

Mack ie,

inc.

40 Exchange Place, N. Y.

HA 2-9000

Teletype NY 1-1825 & 14844

In any

consideration of real es¬
tate
syndication,
it
should
be
Furthermore,
an
investment in borne in mind that participations
real estate equities appears to be therein are "investment contracts"
attractive to certain types of per¬ and thus are securities within, the

Our Reporter on Governments

Now in

Securities

Direct Wires to

Registration—

Security Offerings-

Prospective

participations may raise problems

in the last few years public
offerings or participations in vari¬
ous real estate ventures have met

Securities--,——-.

Utility

Dallas

Cleveland

Chicago
Los

enough capital to invest in a

gle building by themselves or may
not care to put all their eggs in
such a basket. Whatever the rea¬

Public

of whom may not have meaning of the Federal securities
sin¬ laws. While an offering of such

sons, many

Regular Features

kind of property
be syndicated. The usual ob¬

interest

soaring New York office building
or
of a nationally famous hotel.

oc¬

any

syndicate-owned.
has

•>

•

associates

The U. S. and World Trade—A. L. Gitlow—

Street, which is not very recently jects for such endeavors are apart¬
houses,
office
buildings,
however, I recall the Equitable ment
Building Corporation, the City In¬ hotels and shopping centers. The
vestment Company, and I might opinion has been advanced that
think up a few more, but not very most of the major buildings in the
many.
Even Webb & Knapp was nation will eventually come to be

then,

• •

Solving Our Economic Problems
,v\".

Under this

stitutions, corporate or charitable. trusted to a lessee or sub-lessee
Until
relatively
recently, there on a rental basis designed to pro¬
duce the cash yield which is ad¬
were relatively few publicly held

corporations whose principal busi¬

.£-....

it"»

public are admitted as limited
partners. The actual management
of the property is sometimes en¬

Edward N. Gadsby

Galbraith

Kenneth

resources

Municipal Debt—Arthur Levitt-—

-John

members

and.

by individuals,

federal

the role of general partners,'
- of
the
investing

cupy

property was
closely held

Prospects

Some Thoughts on Public Policy and the Dollar Problem

corpo¬

syndicate in the form of

the

Current

have -most:. often,

limited partnership.

most

It is for this last

ly sedulously avoided' the5

many years,'

fee

;

that promoters have usual¬

Based

—M. C/Fergenson____

income tax laws.

e n

the :V

is the'1

men

Investment Program

Future

factors, such*
organization,^
of
the
property/
limitation of liability and, most
important, the applicatiori of the,

pres-

known to

are

syndicate involves considera¬

und erstand '
,

the each other. The choice of form for.

that the

red

NEW YORK

Christmas Shopping Notes—Ira U. Cobleigh

•,

Manhattan

the

Telephone: WHitehall 4-6551

Union Policies Must Conform to the New Business Climate

here.
if

Obsolete Securities Dept.

;

Gadsby's paper is the SEC's recent release on the subject.'

understand

gocd!

emphasizes that the tax amendment does not affect the Federal

Mr.

wh i

penny

When the Securities Laws Apply to Realty Syndicates

present pattern of syndication remains somewhat doubtful.

securities

one

;

real estate investment trusts may not provide all the advantages of
taxation

attention

paper

that since taxation of

says

—-even

gets

Gadsby

lays down this strong warning with advice to issuers and syndicate
managers about the fragility of intra-state exemption.
Turning to

COMPANY

Page

told that the

are

cumin

B.S.

AND

By Edward N. Gadsby,* Chairman, Securities and Exchange
Commission, Washington, D. C.
estate

CONTENTS

When the Securities Laws

Real

Philadelphia

Angeles

St. Louis

San Francisco

of the Securities Exchange

son,

particularly under the provisions
Act of
1934 relating to broker-dealers, I
shall restrict myself primarily to
a discussion
of the Securities Act

vyith adequate response, and a new

real estate

■>_

Stated

1933.

institution, the so-called real es¬
tate syndicate, has come to play a
prominent role in the capital mar¬
kets.

•

under others of the securities acts,

syndicate is noth¬

The Market

this

.___

Best

Tax-Exempt Bond Market—George L. Hamilton——

Washington and You—

Reg. U. S.

Trask & Co,

CLAUDE D.

WILLIAM

BROAD ST., NEW

YORK 4, N. Y.

Albany

Boston

Nashville

Newark

Chicago

Schenectady

Glens Falls
Worcester

Treasurer

Editor

news and ad¬
Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.)

vertising

TELETYPE NY 1-5

TELEPHONE HAnover 2-4300

MORRISSEY,

issue)

(general

and

every

Office: 135 South La Salle St.,
Chicago 3, HI. (Telephone STate 2-0613).
.

Thursday

Other

matter

Febru¬

Subscription Rates
Subscriptions in the United States, U. S.
Possessions, Territories and Members of
Pan-American

Union, $65.00 per year; in
of
Canada,
$68.00
per
year;
Countries, $72.00 per year.

Dominion
Other

Thursday, December 1, 1960
Every

second-class

1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

N. Y.

SEIBERT, President

SEIBERT,

25,

Publishers

2-9570 to 9576

DANA

GEORGE

COMPANY,

DANA

Founded 1868

York Stock Exchange

Patent Office

Park Place, New York 7,
REctor

Company
Reentered
ary

CHRONICLE

FINANCIAL
WILLIAM B.

Tenney Corp.

Futterman Corp.

PREFERRED STOCKS

Members New

The COMMERCIAL and

Spencer

;

Published Twice Weekly

specialized in

Glickman Corp.

have

The State of Trade and Industry

registered with the Commission.
ing more nor less than a group of
Registration is accomplished by
investors who join together and
filing with the Commission a reg¬
pool their funds to purchase a istration statement containing cerspecific piece of real property. It
Continued on page 24
may be a large group drawn from

For many years we

and You—By Wallace Streete

The Security I Like

briefly and gen¬

statute requires that
securities offered or sold through
the use of the mails or by means
of
interstate commerce must be
erally,

Salesman's Corner

Security

W!? V. FRANKEL & CO.
INCORPORATED

Other Publications
Bank

$45.00

39 BROADWAY,
and
per

Note—On
the

rate

foreign
must

Quotation

year.

Record

(Foreign

account

the

—

Postage

extra.)

fluctuations

exchange,
remittances
for
subscriptions
and
advertisements

be made

in New

York funds.

NEW YORK 9

Monthly

WHitehall 3-6633

Teletype NY

1-4040 & 1-3540

The Commercial and Financial Chronicle

(2176)

distinct tendency to top out

OBSERVATIONS...

ahead

the general market and there¬

sulting

and

expected

continue ris-

ing."

"investor"

the

Thursday, December 1, 1960

falling

between the two stools, \

fore, as long as this stock is ad¬
vancing,
the
general
current
trend
of the
market is healthy

WILFRED MAY

...

Relying

Greater

"The

levels,

Fools"

many

have, in previous columns,
expounded on "Greater Fool the¬

supplies us (in ory"; that is, the practice by mar¬
forecasters
of
A MARKET-TIMING BIBLE
unwittingly
48 pages) with explanation of the ket
that
after
you
have
55
Indicator-Points "In Action"; assuming
various seasons of the year when
Now we have a real timing Bible
a
stock, there will
be
that is, in the context of market bought
stocks are best bought (or sold).
someone
containing under a single cover
around, less knowledge¬
performance.
You are shown how to build a
all the technical tools usable for
able than you, to take it off your
hands at a higher price—and vice
"beating-the-market." ("A Strat¬ Trading Calendar based- on your
"Grey Area" Indicators
personal
portfolio so you will
in
the
case
of
a
egy of Daily Stock Market Timing
spec¬
Then we are supplied with indi¬ versa
for Maximum Profit," by Joseph know when to buy or sell for the cators which I would call in the ulative s&le.'Ih analyzing Gran¬
greatest prospects of profit."
E. Granville;
289 pp.; Prentice"grey area" between the technical ville's philosophy, we feel that it
He cites each month's past per¬
Hall; Englewood Cliffs, New Jer¬
and
the fundamental categories. embraces a "Limited Fool" con¬
formance, to add up a composite These include the effect of tax- cept; in assuming that his "Sig¬
sey, $12.50).
Next the author

volume's

The

completeness

qualitative and quantitative
(the 289 pages of text, plus 9 con¬

both

stituting a preface and table of
contents, are sized 8^ x 10%
inches).
the

From

subtitle, "The Gran¬

ville System That

Indicates Daily

Market Action Formulas and Buy,

Signals," we turn
keynote state¬
"Developed
by Joseph E. Granville, writer of
the famous Hutton Daily Market
Hold

and

the

Sell

following

ments in the preface:

the Granville System
sharpens stock market forecasting
to a point never achieved before;
relies on day-to-day, intermedi¬
Wire,

ate, and long-range market indi¬

story is told in technical terms of
volume, price averages, highs and
lows,
support
levels,
resistance
quality of leadership and
other things which can read¬

ily be grasped.
all

that

there

The beauty of it
is nothing diffi¬

cult about it.. It is merely a case
of interpreting 'sign
language' in
terms

of apples and oranges.
"Anything
the
market
says

'technical'

but

again

must

is
re¬

peat— 'technical does not mean
difficult.' The technical approach
js ,the
vides
ING

only key the market
to correct

pro¬

timing and TIM¬

IS EVERYTHING."

readers

our

well

know,

re¬

lying on long-term value factors,
which will allegedly un¬
nals" will be detected by his read¬
we
selling; bucking company reports
fundamentally disagree with
cover repeating
areas of seasonal
ers
just a little ahead of "the this
(i. e., selling on a good statement),
philosophy. Nevertheless, we
changes and weakness.
crowd."
v''-V <Jv
the
interest
rate
and
Treasury
strongly commend its clear and
Specified here also are "Four
Imagery Again
refundings.
forthright expression, as proving
Magic Days to Watch"; namely the
In his engagement in imagery, a
In this area, which departs from
basis, including perhaps a point
17th day after each quarter. On
Mr. Granville also falls in with the of
close adherence to the rule that
departure, for re-examining
these "pivot" dates you can rely
practice of the "technical" frater¬ and re-orienting your own per¬
"the ticker tells its own story,"
as being near the occurrence of a
nity. "Like an amateur boxer, the manent investing attitude.
are
factors in the debunking of
decisive change
in the market's
which
the author
is happily at market telegraphs its punches" is
direction.
his
best.
Included
here
is
the one of his section captions.
Quite a contrast with the sim¬
In his best seller, "How I Made
secondary
offering, merger ac¬
ple system "How-To" books who
tivity, and the stock split. "Run $2,000,000 in the Stock Market,"
rely on one or two pet "signals,"
the
dancer-author, Nicolas Darthe most popular of which merely through any book- of stock price
charts
and
you
will
see
the vas, transfers the fluctuation of
requires
understanding
of
the
stocks
thus:
"Before
a
dancer Hudson B.
Lemkau, Morgan Stan¬
formulation of a dancer's market frequency with which stock splits
coincide
with
important
price leaps into the air he goes into a ley & Co., has been elected a
orders despatched while pirouet¬
crouch
to
set
himself
for
the
governor
of the National Asso¬
peaks.
This can be one of the
ting around-the-world.
A stock in an upward ciation of Securities Dealers,
most profitable of all market ob¬ spring.
Inc.,
Our
present
author
sets
for
trend
that
reacted
to
41
after
servations for traders and inves¬
representing
himself
an
overall
three-fold
reaching 50, was like a dancer
District No. 12,
tors alike."
purpose:
(1)
To
identify
the
crouching, ready for the springwhich consists
In
common
with
market information to be looked
many
tech¬
up."*
of New York,
for; (2) To interpret that informa¬ nicians, Mr. Granville engages in
New Jersey
some
self-contradictions
in
his
*cf. "A Dancer Gives the Answer(?)",
tion after its acquisition, and (3)
year,

—

NASD Dist. 12

Appoints Lemkau

...

cators

well

broad base

factors

affecting stock market
performance
enables you to
.

spot daily market indicators right
in

the

section

financial

'what the market is
of

your

for

decodes

newspaper.

you

voices?]
thus
tipping its hand as to what it is
.

How

likely to do the next day. . . .
long-range market indicators
for

fore¬

over

com¬

general -tools

casting market trends

Together

ing weeks and months.
with

they
signal imminent
up
and
down
price movements, providing you
with a timing formula needed for
day-to-day

indicators,

profitable investment
You're

shown

how

moves.

weigh and

correlate these indicators in order
to arrive at

daily market action
formula, which, in turn, 'flashes'
[sic] its BUY, HOLD and SELL
signals
provides you with
helpful signs [sic] when the mar¬
ket is expected to top off or hit
a low just before a rise. And
you
.

where

market

profits

fixed that the stock

provides

capable
their

for

a daily forecast
producing maximum
those who will open

and

ears

market says."

listen

what

interpretation

the

Wealth

accomplish these joyous
results, the author provides in the
fullest
than

measure..

"Basic

cators."
to

*;Het> lists

Day-to-Day Indi¬

cite

few

Forecasting Calendar As An
Extra

these

exemplify their kind and range.

"Overdueness,
six

unique

device—an

System

'Trading

investor's

all

almanac

Indicator, No. 31—When
gold group picks up strength
the board, then the market

across

usually
with

follows

afterward

soon

reaction."

"The
There

Three-Day Rule, No. 34—
seldom

are

ever

than

three consecutive sharp daily de¬
clines. Either the fourth day sees
a

reduced

decline

sharp

re¬

bound."

coun¬

Ameri¬

healthy market uptrend ahead."
"The General Motors
No.

General

—

Indicator,

Motors

has

Trading in Foreign Securities?

bull

market,

the

secondary offerings

DUTCH

ENGLISH—you

blue

definite

chip

name

offices in

GENEVA

MONTREAL

HONG

PARIS

PANAMA

ROME

LONDON

particularly well-qualified

help and information when it
or
selling foreign securities.
For

evidence

that

the

last

the

insists,
technicians,

The

above

the

begin¬
ning in March,

terms,

the

1961,
Hudson B. Lemkau

important buy spot."

James

are

Weeks &

Spade"

The author is to be commended
in

stating

his

without

adherence

equivocation,
speculator

the

sanctity.

This,

well

Co.; H. Theodore FreeAmerican Securities Corp.;
Robert M. Gardiner, Reynolds &
Co.; Allen C. Eustis, Jr., Spen¬
cer
Trask & Co., and Victor M.
Miller, G. A. Saxton & Co., Inc.

land,

further instance of the above-

MONTREAL,
&

Cie

Inc.

office

under

the

Que.—Oscar

has

339

opened

Craig

Dube

branch

Street

management

With

Schirmer, Atherton

(Special to The Financial Chronicle)

BOSTON,
rick

Mass. —Leroy H. Myrejoined Schirmer, Ath¬
&
Co., 50 Congress St.,

has

erton

members
Boston

the

New

York

Exchanges.
Mr.
Myrick, who jias been in the in¬

vestment business for many years,

has

recently been

with

Homsey & Co.

quoted

comes

titled,

1870

Million-and-a-

Market," by the
Revenue
Department.)

afraid that Mr. Granville's

are

to the tax bill at only
insufficient, in failing to
take into account (1) short-term,
under six-months, profits; and (2)
profits
from
the
short-selling
which he recommends, which are
always taxed at the full income
rates, the latter irrespective of

provide

buying

direct

author
are

NEW YORK 5, N. Y.

offices in U. S., Canada and abroad

and

the

to ask

fundamental

sions?
ear;

technical,

reconciled

his

our

present

others:

throughout the United States and Canada

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

how

Dominick

semi-technical
factors

working

deci¬

Sometimes successfully by

but

Correspondents inprincipal cities

$64 Question

This leads

often,

fear, re¬

Dominick

Members New York, American & Toronto Stock
Exchanges
14 WALL STREET

and

Stock

omit,
play-down this beastly
profits off-set.
(We have previ¬
ously suggested a
sequel to a
Made

East,
Pierr^

Cinq-Mars.

at least,

best-seller

w
■:4'

Oscar Dube Branch

mentioned

of the "how-to" literature to

reference, parenthetical, to tax on
profitable
market
operations,
highlights the common tendency

'How

Ke-

Baker,

resey,

"Calling

for

three -i y^ar

resistance) l' and

(upside

district

committee

middle leg of the
temporary level of

the

members

purist-technical plea,
on that "First Com¬
is
attested
to
in
the
following
mandment," that it is the market's
introductory paragraph:
"Befora
daily action that supplies the key
getting into the book any further,
to its future.
"There it is," he
try to clear your mind completely
says, "double your money every
from an orthodox overemphasis of
year in the market (less 25% capi¬
the importance of earnings, man¬
tal gains tax). Of course it sounds
agement, what you read in the
too good to be true.
It isn't that
newspapers about so and so com¬
99%
of the
people can't do it,
pany's president putting forth an
but is because 99% of the people
opinion about the business out¬
WON'T
DO
IT.
Why?
Simply
look, inflation, etc. You buy stocks
because they do not know how to
because
you
would like to see
read
the
sign language of the them make
you a profit. In order
market
[emphasis
as
quoted]. to do this
successfully over and
Even
among
the
comparatively
over, there is only one reliable
few who do possess this talent
source
of information
to
guide
there
are
many
who refuse to
you, and that is the market itself
heed what the market may clearly
[emphasis as quoted]. The market
be telling them to do."

25%

INCORPORATED

bottom formation traces

role; in lieu of hypocritical claims

hand, the author
basically, as do most all

reference

Merrill Lynch, Pierce, Fenner & Smith
132

very

effective

Elected

shape of the letter "
"we can see that the

to investor

other

the

their age.

70 PINE STREET

the

are

"W Pattern."

Connecti¬

Jan.

alphabet,

right leg of the W ex¬
ceeds the middle leg it constitutes

appear¬

because

over

issues

Internal

KONG

call to our
foreign securities
trading desk, just dial—WHitehall 4-4732.
a

when

and

cut,

1960.

the

Half in the Stock

TORONTO

feel

start

fall."

current

With direct cable connections

going

stock

sees

W represents a

supply

25,

very

lettdr W.

strong to weak hands. When

from

Incidentally,

GERMAN

stock

late in

"Gold

the

you

Gran¬

forms

Occurring

market

ter-cyclical stocks such

Calendar*

all

are

distribution.

bull

Granville

ville's

this

offerings

the

divi¬

dends, stock splits, and secondary

that

Average heighten the probability
of a quick downside reversal."

Aug.

over

states,

double

ing in the Dow-Jones stocks, then

Bonus

even

hand,

"Stock

wisely:

states,

one

get.

not

the

can
Tobacco, General Foods,
American, Sears, Woolworth, etc.,
"Another valuable feature of often coincides with or signals a

But,

example,

19—Five

No.

in the Dow-Jones Industrial

Moving

"By the

daily advances

consecutive

38—Persistent weakness in
A

less

"Counter-cyclical indicator, No.

[Voices again?]

Undermining "The First
Commandment"

Tools to

"Observations,"

Mr. Granville

For

Tools

exclusive adher¬
approach.

to "the market"

ence

"direction of

probable

strict

professed

the market is pointed."

will learn that the natural law of

markets is

its

profitably. The result, it is
claimed, will enable you to know

Its

serve

act

most

saying' [a bit

witchcraft

NEW YORK

Pont,

Volume 192

Number 6008

The Commercial and Financial
Chronicle

labor
all

(2177)

disputes, but it will not stop
disputes.
Accepted by

the

labor
union • idea
is
legiti¬ sentative
established, - the
law
mately attractive to many em¬ then proceeded to establish that
ployees for emotional and other bargaining had to occur, and that
reasons
apart from the so-called agreement had to be reached with

labor

labor, management, and the pub¬
lic

Mr.

Larry writes

tions

and

mends

.we

to face

are

problems.

not

afford,'1 he says, and

"Complete union security is
adds

luxury which

create

national

why they
as

our

are

differences."

Mr.

Larry takes

note

efforts

calls for

return to

free

our

employee and should be treated
facts taught to

There

old

attributable

Mencken

"There

which
have

reported by H.
the

nothing

effect- that:

new

that

save

sure

that

over

min¬

has
cen¬

Heath

seems

long time ago.
In 1935, Jean Harlow was at her
prime. ^ Mrs.
Wallace
Warfield

Larry

Simpson

frontiers

not yet the Duchess

was

of Windsor:
Men's bathing suits
knowledge recently
mostly were still bathing suits,
bouncing
electrical
waves
complete
with
tops; the Polka
against "Echo," the space balloon;
Dot Bikini hadn't been
heard of
nor
those who have projected a
yet—although it may have been
package of instruments into space

utes

the

dreamed

globe every 94 min¬

and

returned

hands for examination

later.",

',,.7-

['■;/

their

few

days

•

V':

Yet in the field of human rela¬

tions,

the

apt than
We

aphorism seems more
would like to admit.

seem

attempt

Country."

following

years

1935

indeed

years

having

infinitely
making tangible

man

of.

was

The

organization
yet to be created in the

were

unconstitutional.

But the
to be

tion

did find the law

Court

result

proceed,

alone

not

voluntary

Unions

exercise

their

right

converted

or¬

Congress
Griffin

moral

ranks

the

not

have

strength

special

may

risen

the

ment

problems, although they reappear
in
a
variety of new trappings,

event

which

seem

have

than in the

area

the

and

area;

roots

antiquity.

keep having to learn old les¬
The French have a saying

sons.

to the effect that the

the

thing

changes, the more it is the same
thing. It seems quite appropriate
in this field.

Brief

Look

Possibly, therefore,
go on

But

the

brief look

to think in terms of de¬

suggesting that we do this, i
don't want you to think I'm like
the mythical bird which was said
to fly backwards because it was

where

with

concerned

it
it

had
was

year.

although 1935 did not mark

end

the

Depression, it did

mark the end of

era,

management relations
after to
text.

until

occur

wage

going,

knowing

than

been

"Without

his

Franklin

right

Roosevelt

with

because

lighting

back

dictated

ment to the

President

of
of
in

Labor
and

r e s e n

cigarette,
a

all

that

theory in¬
fact, some

sincere expectation of those who

framed

the Act.

this

me refresh one's recol¬
of one of the paragraphs

lection

repre¬

the

statement

Policies
of

set

forth

Findings and
the

ii-

cause

Wagner Act and carried
forward
by
the
Taft - Hartley
the

Amendments:

not possess

power.

and

"The

the

growth of union
With the exclusive repre¬

inequality of bargaining
between employees who do
full freedom of assoContinued

are

pleased to

announce

the securities business

that

Martin, Inc.
Elkhart, Indiana

will

now

be conducted

{

Truman P. Ball

Cruttenden, Podesta & Co.

Clarence E. Baker

of
B. A. Uline

William f. Martin

We maintain active trading markets in:

Soroban

Miller Uline

will manage

Engineering

Class "A" Stock

our

this

new

fourth in Indiana, and

branch office—

our

19th nationwide

Scott-Mattson Farms
Class "A" Stock
New York

Denver
St.

R. S. DICKSON & COMPANY

San Francisco
Omaha
Louis

Cedar Rapids

INCORPORATED

Madison
Members Midwest Stock

CHARLOTTE

.I NEW YORK

RALEIGH

MIAMI

JACKSONVILLE

COLUMBIA

Exchange

ATLANTA

Lincoln

Cruttenden, Podesta

St. Paul

Members New york Stock Exchange and Other

Milwaukee

Indianapolis
Gary

209 South LaSalle

CHICAGO

Grand Rapids

Fremont

Co.

Principal Exchanges

St., Chicago 4, Illinois

Elkhart
-

GREENVILLE

GREENSBORO

Fort Wayne

outset

the

power

Walter H. Babb
7.

part

connec¬

tion, let

state¬
?

major

for

W. F.

'This act,' the

said, 'defines as

v e

naive

matter

employees in the bargaining unit,
and this was exceedingly impor¬
tant from the standpoint of union

Manager

substantive

eliminate

t i

been

might properly wonder whether
this Utopian result was ever really

The law made the rep¬
resentative selected the sole rep-

William F. Martin

Bill.

...

ally

deed.

sentative.

week

Disputes

public.

selection

have

that the his¬
shows this

Representatives:

law, the right
self-organization of employees
industry.
It may eventu¬
our

the

bargaining

hand,

last

leaned

the

deter¬

years

con¬

constitutional quiver

for

may say

tory of the last 25

framework

who

their .^willingness
to
pur¬
the 'goods
produced
at
prices which make such wages

establish

procedures

part

business

chase

should

however, do much

words:

freckled

—rby

col¬

their

disagreements

can

and
reached

wage

mine the wage level of employees

the concept of gov¬
the

employer

guarantee

control

denying

tomers

employees of

rate higher than

creating unemployment for
of the working force.
there

Landrum-

to have been the

seems

that

there¬

different

right¬

guarantee it at a rate
by bargaining, the fact is that in
the final analysis it is the cus¬

1959 when

resolved.

than

the market would permit without

And

the parties in detail what
should bargain about, nor

magazine for July 15,
1935, noted the advent of the new
these

could

What's Happened to Wages?

bargaining process as con¬ possible.
in
the
original Wagner
Now some

Time

which

for union-

were

signed
Then,

where

not

in
the

intervention

Registered

velopments for the future.

did

stock—an

Backward

backward may be in order before
we

preferred

following

law
A

its

enacted

It did,

result of

scientific

While it

tell

Thirties.

idend

in this

progress

Steel

of industry—por¬
both

was,

how

privilege
It

have risen

result

they

without

grown

the

States

deemed

protections

exercise

Act was, in one respect, somewhat
limited. The law did not proceed

deny that labor union

would

not be

United

management.
were

tions

continues to grow, as

To be sure,

sity.

have

until

and

parties

of the proceeds

no¬

law.

ernment

neces¬

would

cerned

two

to be in conflict over the division

The Wagner Act's Partiality

tained

The

manifest again

lective

equivalent

Corporation resumed the full div¬

labor

These

pro-union ad¬

legal
forcible

the

concern

was

the

basic

trouble

tween

somehow

the

spreading notion that some
magic called "collective bargain¬
ing" could make possible the pay¬

some

if there

one, seemed to have been to
effect a "balance of power" be¬
was

—

Hartley Amendments of '47.

the

It would

con¬

The theory of the law,

attitude

enforcement

theory

right
to
self-organization into the right to
organize—and
proceeded
as
though legal acceptability were

tion of one magazine writer of the
period who observed that it would
was

course, the enactment of the Taft-

alone,

law

result, and with

unionism.

constitutional, and organiza¬
did

quite

against

under

far

apathetic

local

representative possessed over the
employees.

those

law

the

share,

during a period of fully claim. And the law further
war-time
controls, by mid-way seemed to assume that, in this
nation.
through this 25-year period, union division of proceeds, employees
What might have happened if
membership had increased four¬ had always been at some handi¬
the extension of labor organiza¬
fold and reached a total practi¬
cap and had never received their
tion had manifested no more than
cally equal to the percentage of just share. Completely forgotten
a
voluntary exercise of the rignts the work force which it has
today. was the simple fact of life that
of employees to engage in selfMore important, unions had ac¬ neither
party had any continuous
organization, which is what the quired a power which
began to claim to these proceeds without
law on its face purported to
pro¬ make
thoughtful people every¬ earning it anew each day in the
tect, is as difficult to guess at the where
wonder whether the im¬ market.
Forgotten was the fact
end of this quarter
century, as it balance, once thought to be in that both
employees and employ¬
is to guess what might have been
favor of employers, had not been ers had to
cooperate in serving
if only one more Supreme Courc
redressed so far that not
customers or, failing that, to lose
only em¬
Justice had cast his vote with the
ployers, but employees, as well, their business and their jobs.
four who thought the new law to
needed
some

And the great Depression was not

But the employer did not

in any way, the exclusive control
his market that the union

ministration

admitted, I think, that
purely voluntary decision
labor union membership

over

table assists from

in the hands of the organizers.

at least by the defini¬

law—and

turned

were

devices.

own

over

private organizations in America.

minds of playwrights and the egg¬
head
was
yet
to
be
hatched.

over,

sub¬

privileges never before exercised
by or tolerated in the hands of

union

the

outside

light of

ganize, but with the help of wild
promises, boycotts, forceful pick¬
eting,
and
outright
violence.

That

have

to circle

the

out

employees

scientific

sets

Anniversary.

those

pushed' back
the

AFL

lations Board celebrated its Silver

not agree; nor

who

must

them.

Wagner Act first became law; re¬
cently, the National Labor Re¬

utes, would
would

for

since labor relations in
America
began a new chapter.
In
1935, just 25 years ago, the

earth,

what

toward

tury

little

may

it, but in the
today and tomorrow

not

lessons

look, because it
exactly a quarter of a

been

tinger,
who
plum m e t e d
nearly 20
in

problems

lies

yours,

from

backward

Kit-

miles to

learned

within

assumed

organizers swarmed into major in¬
dustrial
centers
throughout the

We are, I think, at a particu¬
larly appropriate time for a brief

Captain

prepared

someone

—and

forgot¬

ten."

interest,

yesterday, except

that the enactment of

care

turbulent

enterprise system; de¬

employees is not anti-union.

aphorism, either

from

The

such; and states economic

resulted

measure from the use by
organizations
of
special
privileges — those then available

The author

employee is

quarter-century

loose to their

labor

Turbulent Years After 1935

communications with employees a still
underdeveloped art;
says management must relearn that a
union-represented

ployers, the parties

stantial

the

unionize

scribes

still

cant expansion of the labor move¬
in the first half of the last

ment

the

bargaining at separate competitive unit-by-unit

levels which he terms the heart of

as far as 1
this exclusive representative.
all
impartial Having then guaranteed the right
historians
of to strike, and established a long
the period agree that the signifi¬ list of unfair
practices for em¬

Disputes Bill would be
followed by a series of strikes as

or tripartite councils and
explains
potentially dangerous to our free market society

compulsory arbitration which unionism, too, opposes.

But

know,
practically
labor-management

the Labor

advisory boards
as

economic interest.

did not

we can¬

"there

is so much
community of.
employers and employees and their representatives
simply cannot let our free society flounder over our
inability

resolve

respon¬

■ •

virtually
unanimous
opinion of labor observers, or tie

lieve

interest between
that

sober

A little later on, one of the same
magazine's writers wryly observed
"Either the President did not be¬

labor-management rela¬

necessity of adopting changes he recom¬
mounting competitive pressures and cold-

war

sense

achievement of just and peaceful
labor relations in
industry'."

States Steel Corporation

the realities of
today's

the crucial

sibility and of willing cooperation,
however, it should serve as an
important
step
toward
the

By R. Heath Larry,* Administrative
Vice-President-Labor

Relations, United

with

In Elkhart: 214 South Main

Muskegon

St., Telephone: JAckson 3-2375

Chicago Heights

RICHMOND
,

November 29, I960

page

The Commercial and Financial Chronicle

(2178)

of $6,000,000 Port of Kalama,
Washington Grain Elevator reve¬
sue

TAX-EXEMPT BOND MARKET

bonds

nue

GEORGE L. HAMILTON*

offered

were

public. This issue

purchased
by
headed by Foster &

With

this

America

in the way

not too much

report from the
tax-exempt bond field. While the
municipal market did not cease
worthy

exist

when

week

this

3.85%

for

secured

relatively

and

issue. This

term

issue

demand

investor

good

gen¬

investors, the balance at
time being just under $5,-

1962

900,000.
Also

Tuesday, the Capital of

awarded

Puerto

Rico

serial

$5,000,000
public
im¬

(1961-1980)

the

the
fraternity provement bonds to a Halsey,
Stuart & Co. group at a net in¬
journeyed to Florida to renew
old
acquaintances
and
discuss terest cost of 3.91%. Included as
financial
problems, fate in the majors along with Halsey, Stuart
form of a light new issue calen¬ & Co. were Smith, Barney & Co.,
Ripley
&
Co., . and
dar had more to do with the quiet Harriman
than

market

the

nicipal bond

absence

men.

■

John

mu¬

only
the

bond

tax-exempt

market

steady during the past week,
with some slight decline in the
supply

bonds.

five

time

the

average,

according

mercial

and

weekly

Com¬

the

Chron¬

Financial

The

Another

at 3.2377%.

last week

dollar

volved

state and
municipal revenue issues, often a
barometer of what is taking place
in
the
municipal
market,
are
down fractionally from last week
with

quoted

limited

losses

17, it showed

3.85%

yield, compared with

age

of 3.87%

23 the

Nov.

the

1981)

porting date. Trading has been
quiet for. this time' of the year

tional

these

for
been

and

issues

undue

there

pressure

Chemical

has

bonds

large and, with
of

Wednesday's

Monday,

Dearborn

Nov.

4.20%.

reported
This

Current

Tax

largest

this

ones

period,

stitutional

level,

im-

are

and

wary

;

■:

;

from

so-called

most

With

poses.

the

for

issue

came

Tuesday. The
way
Authority
000,000 highway
on

1980)

serial

headed

market

Alabama
awarded
revenue

bonds

the

stock

High¬
$15,-

group

by The First Boston Corp.

tax

pur¬

market

Dube

RIVERS,
Cie

Que.

are

"switches"

much

not

large

larger

were

scale,

done

worthy

of note that many are still taking

place.

Co., Shields & Co., White, Weld
& Co., Dominick & Dominick, and
Wertheim & Co. Offering yields

■

Large
sues

are

tween.

(State)—

;

3%%

has

Inc.

opened

Rennie Branch in

■

still

negotiated

few

and

far

SERIAL
Maturity

ISSUES
Bid

v't'/v *•'

Dec. 8 (Thursday)

College,

State

3.60%

3 45%

1980-1982

3.30%

3.15%

1978-1980

3.25%

3.10%

1978-1979

3.15%

3.00%

3%%

1974-1975

3.00%

2.90%

Quebec

East
A

2:00 p.m.

1962-1995

8:00 p.m.

1,650,000

1963-1990

1:00

1962-1985

1:30 p.m.

p.m.

Baton. Rouge

District,

Parish

La.

Noon

11:00

1962-1981

Noon

a.m.

1,250,000
12,000,000

1962-1986

,10:30

a.m.

1961-1990

11:00

a.m.

3,500,000

1962-1984

11:00

a.m.

1,000,000

1962-1981

9:00

a.m.

1,200,000

1961-1977

2:00 p.m.

1962-1991

6:00 p.m.

7,000,000

________

Dec. 14

1962-1980
1962-1981

2,150,000
1,995,000

1,000,000

___

(Wednesday)

Sewer

7,000,000

____________

25,000,000

Dist., No. 400, Washington.____,.
/Housing
Administration,
Washington, D. C.__________A__

1,000,000

11:00 a.m.

97,615,000

1961-2000

Noon

1,820,000
DENVER, Colo.—C. E. "Bush & tUnion County, N. J..___^__—___
Company has been formed with
Dec. 15 (Thursday)
offices in the Security Building
♦Oklahoma City Improve. Author.,
to engage in a securities business.
Oklahoma
!_• 45,000,000
Officers
are
Charles
E.
Bush, •

1961-1975

11:00

____

Wil¬

liam

B.r Arnold,
Vice-President
Secretary., Mr. Bush was for¬
merly with Walston & Cq., Inc.,
Demnsev-Tegeler & Co. and Amos

underwritten

Van

Ingen

Co.,

—

Security

tinder the management of Harold
E.

Bergman.

City School District, Ohio__

3.00%

3.05%

3.65%

3.50%

3V4%

1980

3.40%

3.25%

Cincinnati, Ohio

3V2%

1980

3.20%

3.0.5%

CHICAGO, 111.
Associates, Inc.

New Orleans, La

3V4%

1979

3.65%

3.50%

securities business from offices at;

J3y4%

1977

3.65%

3.50%

South

1980

3.60%

3.55%

Wahlgren is

Form

firm.

Richmond,

Virginia
California_______
_____

State Colleges of

Jan. 3
Cerritos

Juniorr College

Wahlgren Associates
Wahlgren and
is conducting a

Los

Avenue.

•

1962-1981
1962-1998

10:00 a.m.

(Tuesday)
2,300,000

1962-1981

9:00 a.m.

Jan. 12 (Thursday)

Jackson County, Mich

Los

Dept. of
Calif.

Angeles

Power,

Water

10:00 a.m.

1,750,000

March 8

Roy

principal of the

7,580,000
14,173,000

Jan. 10 (Tuesday)
Augeles Sch. Dist., Calif._____- 30,000,000

—

Wabash

1,876,000

District,

■

11:00 a.m.

1962-1999

(Wednesday)

Calif.

2,012,000

Dec. 20 (Tuesday)

Dec. 21

opened
a
branch office at 207 Park Avenue,

-—-—

Opens Branch Office
TALLAHASSEE, Fla.
Associates,
Inc.
has

/___—__l_

"
a.m.

a minimum of $45,000,000 and a maximum of $65,000,000,
syndicate managed by John Nuveen & Co., Allen & Co.,
Inc., and Leo Oppenheim & Co.

University of Nevada, Nev.__

Dover

Dec. 17 (Saturday)

;

Sudler & Co.

1,000,000

negotiated sale of

and

Public

President and Treasurer, and

3.15%

1962-1989

Michigan (State of)--__-__.
.—2'
Marion, Virginia
Pierce County,. Clover Park Sch.

3.20%

30, 1960 Index=3.2377%

:t >

13 (Tuesday)

Dec.

Wisconsin
-■

1977-1980
1978-1980

—__

a.m.

1,648,000
2,500,000

Dist., Idaho_______
Dist/ Calif—
Township Local School

Coronado Unified Sch. Dist., Calif.

1978-1979

/>>

Texas—1,750,000

Dade County,

3Vs%

Housing Auth. (N. Y., N. Y.)
Los Angeles, Calif..
Baltimore, Md

•,

11:00

.1961-1985

Dec. 12 (Monday)

•'

3V2%
3%%

New

;

8:00 p.m.

1962-1981

V Dec. 9 (Friday)'

■

Sch. Dist.,

.District, Ohio

1978-1980

1961-1981

_—

1983-1981

Asked

33/4%

November

1,190,000

Madison

C. E. Bush Co. Formed

is¬

(State)
Jersey Highway Auth., Gtd—
New York (State)
Pennsylvania (State)
Vermont (State)

a.m.

8:00 p.m.

No on 5*

be¬

New

New York City, N. Y

a.m.

11:00

Carmel Unified Sch.

•

is¬

Connecticut

Chicago, 111

11:00

1961-1980

1962-1981''

Cote.

privately

Yesterday morning

REPRESENTATIVE
Rate

California

1962-1976

4,500,000

Boise Ind. Sch.

Oscar

—

usual, but much switching to
advantage of our tax laws
taking place. While in the past

these

bidding. Included
as
majors
in this account are
Eastman Dillon, Union Securities

stocks

7:45 p.m.

12,500,000

y-vv.*
Abilene Ind.

•

take

(1962-

after very close

MARKET

1963-1975

Noon

.//

Opens Branch Office v
THREE

lower level than in recent years,

gains

a.m.

1:00 p.m.

1962-1988

Indiana

' v-

active

"switches"

11:00

1982-1986

1961-1985

8,500,000

East Lansing, Mich.___—______
;Otter Creek School Building Corp.,

important

2,000,000

(Wednesday)

Board of;
Education, West Virginia——1/

Active

been

a.m.

1:00 p.m.

1931-1972

1962-1990

V15 5 *

largest

has

a.m.

10:30

1,065,000
1,650,000

Concord

QUEBEC, QUE., Canada —| G. H.
than usual. As we approach the Rennie & Co. Limited has opened
end of the year, much emphasis a branch office at 20 St. Jean St.
is placed
on
the importance of under the management of J. M.
exempts,

balance

and

Trading

9:30

1963-1982

1,940,000'"

_____

Maryland

7I>'./

ex¬

sensitive
to. upward
price
revision,
although
they
may
not have entirely satisfied
their
current
tax-exempt
bond
tremely

requirements.;;

7:30 p.m.'

1962-1986

1,650,000
10,000,000

—

1961-1997

2,000,000

1___—_

3:30 p.m.
Noon

Dist., Mich.______—

New Jersey

current market
might welL note

investors

1961-1985

Virginia Polytechnic Institute; Va.,1,000,000
Wilmington, Delaware_-_^__^__/,
7,050,000

the

dealers

1961-1988

1,950,000/
5,900,000

pittsfield, Massachusetts.—__—
Saddle Brook Township Sch. Dist.,

investors*

other

6:30 p.m.

County, Virginia—

Fairfax

during
to in¬

scheduled
will, appeal

and

However,

re-

important phase of
markets
including
tax-

all

at $590,000.

week's

portant

less

many

1963-1068

Maryland State Roads Commission,

that these is-

appear

yell

a.m.

1962-198D

9:30

2,080,000

Virginia (State of)______

Davison Sell.

County

Trading,

ing Blyth & Co., Eastman Dillon,
Securities
&
Co.,
and
Shearson, Hammill & Co. The ma¬

would

a.m.

2,825,000'
1,050,000

'•

Dec.

bonds

14.

Dec.

a.m.

10:30

1963-1985

' h

—

Union

2.50%

District,'Utah?I-2

Florida_________.
New Rennie Branch; •
Durham County, North Carolina—
well priced. Initial orders were
substantial but balances are not
MONTREAL, Canada—G. H. Ren¬ Los Angeles County Hospital Dist.
available as we go to press. This nie & Co. Limited has opened a ••// ' California South Bay Union High Sch. Dist.,
sale completes the new issue bid¬ branch office at 635 ' Dorchester
Calif
ding for this week.
Boulevard, West, under the direc¬
Whitewater Joint Sch. Dist. No. 1,
tion of P. Archie Shee.

Town¬

scaled

School

Davenport, Iowa

to
the
group
headed
by
Halsey, Stuart & Co. and includ¬

were

Board of Education,,"
v
•>

Surry County, N. C
West

Road Revenue
branch office at 110-A Des Forges
bonds, was sold Street
under the management of
to the Smith, Barney & Co., Blyth
Dorien Brunelle.
& Co. group. Scaled to yield from
2.75% to 4.25%, the issue seems

sold

offered

It
sues,

Authority

Housing

sale

10:00

1962-1992

Dec.

•

Diego Unified Sch. Dist., Calif.
South Bend, Indiana—_—___—

the calen$97,165,000

8:00 p.m.

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

1982-1991

12,500,000

San

State

■

1961-1980
1962-1973

7,800,000
* 1,810,000
r 2,235,000

30)

(Nov.

serial (1964-1990)

ship School District No. 4, Michi¬
gan serial (1963-1986) bonds were

turities

Public

issue,

borough

During the week past there was
relatively light volume of new
municipal issues. The few, more
important,
new
issues
will
be
noted.

issue

continues

for

$14,500,000
Florida
Development Commission, Hills¬

$1,400,000

Maryland

.$12,500,000

7. The largest

Trust

were

Hempstead Union Free Sch. Dist.

*Pinch-hitting for Donald Mackey.

and

"*-V

Florida

4.70% yield.

Roads Commission bonds for Dec.

dar

a.m.

•

coupon

new

Recent Awards

briefly

also for sale Dec.

that

presently up for
sale, does not pose an important
market negative.

28,

school bonds
and

a.m.

11:00

are

1/10 of 1%

issues

new

this?

for

offered at

not

unduly
modest calendar

moderate

Detroit, Michigan
be offered Dec. 6; $10,-San
Diego, > California

000,000

9:30

1961-1980

•
.
V
>
Dec. 6 (Tuesday)
Detroit, Mich.;-8,530,000

Savings
Pierce,
Fenner & Smith Inc., as well as
otners. Scaled to yield
1.90% to
3.90% for the 1978 maturity, the
current balance is $1,610,000.- The
1979 .to
1981
maturity
carried

List float of available

$8,530,000
to

1963-2000

(Monday)

$7,800,000 Peoria ,Knoxviile, Tenn. II——'
Peoria
County, Illinois bonds scheduled Nashville, Tenn_________A_ J—
for
Dec.
5; $12,500,000 State of Riverside
Parking District No. !,•;
Texas bonds up for sale the same
bonds

a.m.

3,299,000

'Texas (State of)____——

for sale during the com-

week

1962-1981

2:00 p.m.

' 1,330,000

.Peoria .County Sch. Dist. No. 150,
Illinois
rQuincy, Illinois ___
:__—
Richardson Indep: Sch. Dist., Texas

only

11:00

12:30 p.m.

(Friday)

(State of)....'
Dec. 5

ing

Bank,

municipals has dropped to $367,434,000 as of yesterday morning,
as
against
last
week's
total
(Nov. 23)
of $378,108,000. This
amount

sues

(1961-

York

New

Dec. 2

S°nnnn°LtnheJ.ear' ^ing about :-Gr&nlte.
$360,000,000. The -onlysizable is-

HarrisTrust and
Merrill
Lynch,

Co.,

these

bonds.
The Blue

Bank

Raton, New Mexico

The calendar of scheduled-->ne\<£■.•'Florida1State

issues

New Mexico
serial (1962bonds on Tuesday to the
managed by The First Na¬
City Bank of New York,

group

Looking Ahead

"■

the
in¬
in-

on"
on
by

highly successsuccess¬

underwriting.

rml
\

Albuquerque,
awarded $4,500,000

re¬

interest
reception

vestors indicates
ful

ing.

and

Initial

bonds.

bidder.
Scaled
from
3.90%, $1,185,000 re¬
mained in group yesterday morn¬

level

providing for semi-annual leasepayments sufficient to pay

principal

1981-1987
1962-1981

5,350,000
1,040,000
1,350,000

Indianapolis School City, Ind

are

rental

high

1.80%

aver¬

last

Free

and

(Thursday)

N. Y.

Grain Growers Inc.

North Pacific

Chase Manhattan Bank group was

Hemp¬

Union

York,

1990,

9,"

Delaware

sales in¬

North

$2,215,000

and

Dec. 1

Hempstead U. F. S. D. No.

Adams State College of Colorado.-

day;

Tuesday's

1980

will be opened.

lease between the district and the

1990) bonds, for which the Chemi¬
cal Bank New York Trust
Co.,

Turnpike
Index
reflects
slight
price
easing as on

Nov.

Federal

and

state

School District No. 9 serial

one-half

this

stead,. New

point. The Smith, Barney & Com¬
pany

all

taxes.

income

stopped moving down
in yield and was unchanged from
has

dex,

from

laws

grade bond in¬

icle's 20 year high

constitutes

faith, credit and unlimited taxing
power
of the capital of Puerto
Rico pledged to the principal and
interest
of this issue.
Also, the
bonds are exempt under present

first

the

For

weeks

writing being

this

general obligation with the full

held

This .issue

$3,250,000.

••

Information, where available, includes name of borrower,'

yield from 2.50 to 4.75%.
The security consists of a 30 year

with

reception,

moderate

Weld^Co." amount °f issue, maturity scale, and hour at which bids

scaled to

received

to 4.00% the issue

balance

from

Scaled

Co.

Nuveen

1.90%

■_

Yield Index Unchanged
The

group1 are

Tyson. The bonds mature serially

major-domos

ing

press

news

„

syndicate
Marshall of

among

well

short
erated

there is
of note¬

week,

from

this

giving holiday last week, plus the
Annual
Convention of the
Investment
Bankers
Association

49th

1.90%

the following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set.
In

White,
William Blair & Co., Dominick &
Dominick, Schwabacher &
Co.,
Boettcher & Co., Stern Brothers
& Co., and Townsend, Dabney &

ran

Thanks¬

the

advent

the

Larger Issues Scheduled For Sale,

■

the

negotiated

was

and

Thursday, December 1, 1960

...

(Wednesday)

and

12,000,000

Volume 192

Number 6008

The Commercial and Financial Chronicle

Steel

Production

Electric

Output

.2179)

centers for the week end¬
ing Nov. 2o follows:

money
'

Carloadings

The State of

Retail

Auto

TRADE and INDUSTRY

Price

Production

Business

tinued

activity in October

reflect

com

mixed

industrial

economic developments

larly

presented

regu¬

in the Commerce

Department's Survey
Business, monthly

Current
publication
prepared by the Office of Business
of

Price

Summed

the

1,059,707

The

However, there is

6.7

—

0.9

agement

989,000

965,000

2.5

automotive

785,649

706,746

+11.2

are

that

basis

the

some encour¬

steel

of January

orders.

Setbacks

there

tonnage

sheets,

bars,

will

move.

products

plates,

could best stand

(carbon

shapes)

and

increase, they

believe.

Index

Steel Industry

about completed and cancella¬

tions

to Operate at 50%

may

•

likely

Economics.

not

%
+

Philadelphia

Chicago

Items that could not are: Tiq
ending. January plate,
electrical
sheets,
barbed
Capacity Indefinitely
buys
look
good
for
General wire, nails, welded tubing, rein¬
The
steel
industry tms week Motors, with encouraging orders forcing bars, stainless products,
Fisher
ber has tended moderately upward enters its sixth consecutive month from
Body, GM's body- and tool steels.
of operations at close to 50% of making division. Ford also looks
in recent months
Production this week will come
after allowing
back only part way from the low
for seasonal variation.
capacity. And there is .no indica¬ like it may pick up its buying.
«•
tion of any significant change un¬
Otherwise, the market will con¬ point to which it dropped in last
Slackening -demand for indus¬ til
well into 1961, The Iron-Age tinue to
trial products has been reflected
scrape bottom-into 1951. week's Thanksgiving holiday pe¬
reports. Best guess now is a slight pickup riod.
in lowered corporate profit mar—
in January over December, a mild
Operations, dropping 4.1 points
gins, but with the steady flow of V<.This' compares with 1958, when
steel operations ranged mostly in upturn at mid-year with a sub¬ last week, moped along at 47.5%
divi "ends from
corporations, perh
of capacity,
the 50's
for- a .period
stantial
yielding about 1,352,of seven
buildup in the
second
-sonal income from this source has
000 net tons of ingots.
months.
Otherwise, the national half.
been maintained.
Part of the drop came from time
metalworking weekly comments, "Steel" Believes Odds Are Against
Retail
purchasing in
October
out for Thanksgiving Day observ¬
it is the longest period of sus¬
Steel Price Increases on Dec. 1
rose
2% above September's sea¬
tained
Gads are againsl a steel price ance,
low operations since the
but some stemmed from
sonally
adjusted
rate,
bringing 1930's.
increase on Dec. 1 when industry shutdown of facilities until steel
the aggregate back to the average
Except for a few "false starts," wage rates go up an average of demand picks up.
of

picture
employment and
sales showing diverse tendencies,
according to the monthly review
with

1959

$11,567,490

1,049,809

York—

across-the-board

schedule

Boston

Failures

Commodity

Business

New

Index

predict

the

filled.

1950

$12,343,791

Trade

Food

Studebaker-Packard indicates that

000s Omitted

October

income

personal

figure

the

—

broadest availab1^ monthly gauge
of business developments — the
month

brought

Employment
downward

fractional

continued

from

the

from

edge

was

picked

September. "Retail

buying was higher, paced by a
quickening
of
activity
at
auto
showrooms and
dise stores.

picture

ness

continues

in- demands

reduction
for

general merchan¬

inventory

OBE

princi¬

according

analysis.

the

goods

purposes,

materials,

pally

to
for

Easing Credit Markets
.

'Moneta

Industrial output in

authorities have
moved to insure readily available
supplies of credit to meet the

October, as
measured by the Federal Reserve
Board
index, remained at 107%
of the
1959
average,
unchanged
from September by reason of the
rise in auto production.

still

low

tinued

steel

use

the

nulmber

con¬

workers

funds

This

year

the

seasonally

about

53.1

em¬

farm

total

October

non-

manu¬

facturing.

In this broad grouping,
employment by motor vehicle

firms

was

where

but else¬
showed

little,

most major groups

further

small

reductions.

Compared with

the high

point

reached in

July, nonfarm employ¬
ment
in
October
was
300,000
lower. • Government employment
moved

has

after

steadily

making

Decennial

Federal

The

ber

from

came

State

mid-summer

the

140,000, mainly in
payrolls, In pri¬

vate

establishments, by way of
employment has tended
lower since July with the total
reduction
amounting to 450,000.
contrast,

Two-thirds of .this
for

factors

was

accounted

tions

have

•

firms,. reduc¬
but fairly

small

been
a

iI-..'

The

factor

the

little

slackened

rise

than $2 billion,
1%, since last July,

$25 billion or 6%%

year

above a
Wage and salary pay¬

ago.

ments

October

were:

virtually

unchanged from those of the sum¬

period,
as - reductions
in
manufacturing payrolls were off¬
set by gains elsewhere.
The supplement to purchasing
power provided
recently by the
expansion of transfer payments
has been significant.
These were
over $1
billion higher on an an¬
mer

nual rate basis than in July

the

Use

hour

costs

and

may

total

em¬

advance

isolated

orders

timism
tend

and

mild

traces

local

regional

resiliency

for

the

op¬

and

influences.
show

little

will

prob¬
ton.
third

quarter earnings of iron and steel

these

nature

markets

months.-

But

major

subject
The

instances; improved
observed.

are-

Increases

move.

ably be limited to $3 to $4
The
magazine
reported

companies averaged only 3.4%
sales.

money;,
cover

several

their

dends,

few

...

steelmakers

Several

others

common

nothing

offset the Dec. 1

These include

appliance makers,
implement and construction
equipment manufacturers, ware¬

lost

failed

stock

ol
to

divi¬

Fourth quarter results will

worse

done

employment cost

increase.

farm

Chances

there

are

will

This Week's Steel Output Based
On

49.3% of Jan. 1, 1960 Capacity

The

American

Institute

erating
will

average

Nov.
tons

for

28,
of

(based

tion

Iron

announced

rate

pacity

steel

*87.4%

the

annual

than

was

$29

here

rate

when

slightly

less

billion. A major factor
compensation paid to the
insured unemployed, whose num¬

and

that

Steel

the

op¬

companies
of

week,

steel

ca¬

beginning

equivalent to 1,404,000
ingot and steel castings

average weekly

of, ,1947-49).

These

produc¬

figures

compared with the actual levels of
*85.1% arid;, 1,367,000 tons in the

will

offering is made only by the Prospectus.

Nf.w Issue

November 29,

four

1960

80,000 Shares

of standardiza¬

production

Wood-Mosaic

methods

conveyor

USSR

this

divided

the

($1.00 Par Value)
,

output

year,-

follows:

30%

25%
drilling
machines,
milling
machines,
8%

machine

Price $10.00 per share

miscellaneous

27%

and

Corporation

Class A Common Stock

of
.

Extensive research facilities.

Bank

one-half of

and

that

machining and assembly.

tools.

Clearings

6.4% Above

.Corresponding 1959 Week

personal income, which at $409 V2
billion annual rate in October, was
up

••

to Be Large-

saying

degree

grinders,

softening employment tend¬
recent months has been

first

speeding the Red ad¬

Specialization
many plants.

lathes,

Sustained

cents

ployment

ency
a

Flow

8.4

high

10%
Income

December in line to be the poorest
month of the year.

tion.

by manufacturing.. In private

nonmanufacturing

has

consumers

are

vance:

Octo¬

local

and

June.

The

partment,

Census.

high,
borrowings by

The magazine quoted Forrest D.
Hackersmith, director,
export
policy staff of the Commerce De¬

gain in government employ¬

ment

true

temporary impact associated with
the

end

million.

1960,

for

allowance

been

the

houses, construction, and the rail¬ across-the-board increase initiated week beginning Nov. 21.
-.V
roads..
■ r
•
by the largest "producer — U. S.
Actual output for last week be¬
Automotive remains a question Steel Corporation.
Scale Exporter of Machine Tools
ginning
Nov.
21,
is
equal
to
More likely, a smaller steel pro¬
mark.
At the moment, ordering
Witr.in
five years,
48%
of
the
utilization
of
the
the Soviet
from the big automakers is non¬ ducing company which is excep¬
Bloc will be in the world market
Jan.
1, 1960 annual capacity of
committal, although this could be tionally hard pressed financially
as
an
exporter of machine tools,
148,570,970
net
tons.
Estimated
the
most volatile
factor in
the will make the first move on base
expecting to send abroad 15 to
percentage of this week's forecast
steel market.
prices of selected products. Other
based on that capacity is 49.3%.
2o% of its output, Steel magazine
Auto
production in November companies will follow suit.
reported.
\
A month ago the operating rate
will hit around 590,000 cars with
Competition from other mate¬
Production goals by 1965 call
original December schedules call¬ rials and imported steel are im¬ (based on 1947-49 weekly produc¬
for an annual output of 190,000 to
ing for about the same. However, portant brakes on higher prices. tion) was 92.0% and production
260,000 metal cutting, and 36,200 some slack at Chrysler Corp. and For that reason, some observers
Continued on page 29
metal forming machine tools, the
metalworking weekly said/' -Ex¬
pected inventory by 1965: 2.5 mil¬
lion
tools.
Present
This advertisement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
inventory: - 2

employment
was
100,000
preceding month with

all the decline centered in

year; the
for
loan

relatively

new

and

Soviet Expected

the

under

still

Demand

ex¬

influences.

seasonal

adjusted

million,

time

normally

tapered off in recent months, after
allowing for the usual seasonal

expansion did not materialize and
at

this

business

ployed by industrial and commer-'
cial
firms
from
September
to
October.

noted.

'though* net

pickup

some

OBE

inventories.

Ndfma lly^tftere
in

pand

were

consumers

needs of trade which

Steel mill

operations in mid-November

since

the

industry has

bottom

sharply in the first full

principal readjust¬
feature, of the recent busi¬

ment

the

Scrap is resisting a further price
drop, the metalworking magazine
Weekly operating rates have not much as 13 cents an hour.
said. Its price composite on No. I
month
of
sales^ of h.the h 1961 varied more than a few
Steel
magazine
reported that heavy melting grade of scrap held
points.
models, and the clearance of 1960
The rate of new orders booked by major producers reluctantly agree firm at
$28.83 a gross ton for the
models contributed to
the gain.
the
major
companies
has
also the market will not support a third straight week.
Department store sales in October
stayed level through the summer price increase at this time. They
were
about
Primary
aluminum
producers
4%, seasonally ad¬
are
and autumn.
caught in a squeeze between turned out
167,015 tons of metal
justed, above the September rate
Now, with a negative seasonal rising costs and a weak demand. in October and are now assured of
and exceeded
sales in all other
But a price increase is sure to
factor to contend with in Decem¬
a
record
1960 months, except April.
production year even
Most
ber, orders in the past week have come as soon as market conditions
other major lines of trade also re¬
though
output
will
drop
this
been little better than enouga to warrant.
The only questions are:
month and next.
Steel's estimate
ported improved purchasing by
sustain a 45% rate of operations The effective date, the amount,
for 1960: 2,010,000 tons.
consumers.
in the major companies. This puts and which company will make the
Dealer

mid-summer

high but the workweek
little

the second quarter of the year.
deliveries
of
new vcars

rise.

Bank

showed
a

year

clearings
an

last

Copies of the Prospectus

week

may

be obtained in

including the undersigned,

as may

any state

from such of the several Underwriters

lawfully offer the securities in such state.

increase compared with

Preliminary

ago.

figures

compiled by the Chronicle, based
on

telegraphic

chief

cities

cate

that

advices
the

for

from

the

country, :indi-.
week

the

Cruttenden, Podesta & Co.
J. C. Wheat & Co.

ended

Saturday, Nov. 26, clearings from

Charles H.

Berwyn T. Moore & Company, Inc.

" T. C. Henderson & Co., Inc.

Eldredge & Co.

Warren W. York & Co., Inc.

R. E. Bernhard & Company

Boennmg & Co.

all cities of the United States from

which

weekly

possible

clearings

above those for the

week

last

totals

against

\at

corresponding

$23,613,798,270

$22,198,120,638

same

week in 1959.

tive

summary

for

the

Our compara¬

the

Boettcher and

Company

A. G. Edwards & Sons

leading

II. L. Emerson & Co.
Incorporated

6.4%

Our preliminary

year.

stand

to- obtain

will

Hallowell, Sulzberger, Jenks, Kirkland & Co.

Penington, Cplket & Co.

Parker, Ford & Company, Inc.

Shipper and Finney

Tabor & Co.

Incorporated

Westheimer &

Company

J. R. Williston & Beane

The Commercial and Financial Chronicle

(2180)

Forgan

DEALER-BROKER

York

Co., 45
N. Y.

Stocks

Harris,

—

lists of

are

interesting.

appear

PLEASED

issue

stocks in various categories which

list—Ira

lected

Notes

Stock

Bank

Yawata Iron & Steel; Fuji Iron &

Circular on

—

Steel;

City Banks—

leading New York

are

and

Also

data

tomo

Oil Company; Sekisui
(plastics); Yoko¬
Rubber Co.; and Showa Oil

Toanenryo

of the

—

ures—New York Hanseatic
120

Co.

Chemical

Comparative fig¬ hama
Corp., Co.
Broadway, New York 5, N. Y.
States

United

Rayon;

Toyo

Chemical;

which

sues

attractive

appear

is¬
—

Equitable Securities
Auchincloss, Parker & Redpath,
Ltd., 60
Yonge Street, 2
Broadway, New York 4, N..Y.
1, Ont., Canada.

Survey
Canada
Toronto

Co., Inc., 99
St., New York 5, N. Y.

—

Aid,

Inc.

Allyn &

St.,

Review

—

Co.,

New

York

Stocks

Missile

Capital Gains & Losses
Stonehill

York

New

Oppor¬

—

"Gutman

1960—F ederman,

for

tunities

Pine Street,

Co.,

72 Wall

5, N. Y.

Depressed Stocks—List of 50 is¬
in current issue of '"Monthly

Discussion
&

Letter"—Sterns

Co.,

Street, New York 5, N. Y.

Outlook

for

Fahnestock

—

Broadway,

Curtis,

New York.

York

In the same issue

4,. N. Y.

brief reviews of Illinois Cen¬

are

Manufacturing, Kennecott
Copper,
Pittsburgh
Plate
Glass and Skelly Oil. Also avail¬
Joy

tral,

able

data

are

Duffy Mott Co.,

Southern Ohio
Electric, Metro Goldwyn Mayer,
Philadelphia
G i r a r d
National
Columbus

Inc.,

Bank

Trust

Aircraft
line

and

Company, Douglas

Pipe¬

America

Mid

Stocks

—

investment

various

Anthony

James

for

Selections

objectives
Co.,

Per Cent Yield

Witter &

Dean

Wall

available

Also
on

memorandum

Bullock's Inc.

Gold

the

and

Problem—

Dollar

Ltd.,

Adelaide

Street,

West, Toronto, Ont., Canada.
Under

Investments

the

New

Ad¬

II)

(part

Co.,

Noyes

New York

New York 5, N.

Street,

Broad

15
Y.

York,
York

Market—Review—Ya-

Nihon

New

Cement

Co.,

—

Fenner

Stock

Broadway,
Also

Market

the

New

available

Discussion

—

"Investor's

Merrill

Pierce,
Smith Incorporated, 70

same

Lynch,

issue

discussions

are

Securities, Northrop

of Christiana

Corp., Keyden Newport Chemical
Corp.,

Pitney

Union

Gas

Bowes,

Company,

Metallurgical
General

Oil.

Beauty

cosmetics

Reduc¬

Company and

American

Profits

Brooklyn
Fansteel

Air

Corp.,

Co., Square D

—

Review

—

York

industry

—

5, N. Y. Also available are
on
Southern
California

reports
Edison

Co.

States

Coastal

and

Rico:

■

Report

Economy, 1959

the

Treasury,

nomic

and

—

Finances
Department

Office

Financial

San Juan, Puerto

of Eco¬
Research,

Rico.

San

Juan—Special

Report—Gov¬
Bank for

Rico,

San

Puerto

Juan,

Rico.

Solution to Certain Finance Com¬
pany

Problems—Booklet—Glore,

For financial institutions

only

Sumi-

Inc.,

Industries

Ltd.,

Electric Co., Ltd., Mitsubishi

Electric

Manufacturing

Co.,

•

■

Scantlin

Vending Company

*Bzura Chemical

Company Inc.

Yardney Electric Corporation
Electronics International Capital Ltd.
Franklin

Corporation

Baystate

Corporation—Analysis—

First Boston

The

Review

—

Carl M. Loeb, Rhoades
Broadway, New York

Also

available

Eastern

Gas

Associates

Friden.

Precision

the

available

Industries,

—Analysis—Dittmar &
201
North
St.
Mary's
Antonio
R.

Western

Inc.

Co.,
St.,

Inc.,
San

Memoran¬

—

St., Philadelphia 2,

Behlen

Co.

—

Memorandum—Smith, Barney &
Co., 39 South La Salle St., Chi¬
cago 3, 111.
Brown

Company

York

Central

Co.

Hudson

Gas

Fricke

Moyer,
South

Broad

123

memoranda

are

Aircraft

Stanley

Warner

Cetron

Electronic

Corp.

and

Corp.

Co.,

1518

St., N. W. Washington 5, D. C.

Cincinnati Milling Machine

Co.—

Report—Thomson & McKinnon, 2

Broadway,
Clary

York 4, N.

New

Corp.

Memorandum

—

bulletin

—

Re¬

—

Signal

Gas Co.
Lake

Sulphur—Memo¬

Pershing & Co., 120
New York 5, N. Y.

—

Walter

Jim

Corp.—Review—Van

Alstyne, Noel & Co., 40 Wall St.,
New York 5, N. Y. Also available
reviews

qre

the y!Warner

Swasey Co. and Barden Corp.
Kirsch

Co.

Union

Globe

—

Podesta

& Co., 209
Chicago 4, 111.

South La Salle St.,
Also available is a

memorandum

Inc.

Broadway,
New York 5, N. Y. Also available
is

Co.,

120

of Litton Industries.

review

New

tional

Also

Fink

Bulletin

Broadcasting,

Na¬

Broadway,

and

Life

Equipment

Rental

Stanley Aviation.

pany

Cluett
W.

Sparks &

Co.,

Broad¬

120

Pa.

New York 5, N. Y.

way,

Deere

Co.,

Co.—Survey—Shields &

Wall

New

St.,

York

Denison

Mines

Survey — Ross,
Co., Ltd., 25 Adelaide
St., West, Toronto, Ont., Canada.
Also
are
available
surveys
of
—

Knowles &

Ventures

Limited

Slater

and

In¬

Company—Data—

Illinois

Co., Inc., 231 South
St., Chicago 4, 111. Also

Salle

same

General

Goodyear

Tire

circular

Motors

Rubber

Co.,

Instruments, Inc.
and United States Steel Corp.
Distillers

Corp.

Seagrams

—

Co.,
Y.

Wall

Also

the

national

St.,

New

available

York

memo¬

Oklahoma Natural Gas

current

issue

discussions

Nickel,

Natural

Co.,

—

Inc.,

list

2,
of

yielding 25-year
dividend
payers
in
the
over-the-counter
high

Aircraft

—

Bulletin

—

Shearson, Hammill & Co., 14 Wall
St., New York 5, N. Y. Also avail¬
and

are

data

Central

St., Boston 9, Mass.
Metro

Goldwyn

Stanley Warner

Louisiana

Hudson Gas

—

Tax

Exempt

Elec¬

Bonds

Investment

Crane

"In-

Inter¬

Gas In¬

Mines

Noranda

Hastins

St.,

Canada.

Ltd.—Analysis—

Co., Ltd., 821 West

Request

Sheller

Dry,

TROSTER, SINGER & CO.
Member New York

Security Dealers Association

Manufacturing,

and

Donnelley

Memorandum

Co.,

100

Francisco

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Teletype NY 1-376; 377; 378

Eastern

—

Gas

St.,

Canada

Sons

Joseph Walker & Sons, 30 Broad

New

St.,
Old

York 4, N.

Republic

Life

Salle St.,

South La
Pantex

Fuel

Corp.

Corp.—Analysis—

Shoe

J. R. Williston & Beane,

York

New

way,

available is

Also

Harris-

Corp.

Intertype
Sports

bulletin

2 Broad¬

(Delaware)

Arenas

Inc.—

Co.,
St., New York 5, N. Y.

Analysis
Wall

—

Hentz

Corporation

Engineering

Beaver

St., New York 4, N. Y.
is a report on Mc-

Also available

Fibers Corp.

Glass

Gowen

sis—Wm.

111.
Swift

Company
&

Analysis

—

Co.,

list

American

North

and

depressed

stocks.

Tayco Developments Inc.—Survey
—Schweickart
way,
New
available is

29 Broad¬
N. Y. Also
survey
of Taylor

Co.,

York
a

Devices, Inc.
United
John

Air

Western

Lines

Lewis

Analysis

—

Publishing

—

Report

Corporation.

McWilliams

Industries,

Inc.—Bulletin—Georgeson &
52

Wall

Principal for

Inc.

Dealers Association

•

NY *1-4722

Orders Executed at regular commission rates

National

Stock Exchange* of Canada

Association

Co.,

St., New York 5, N. Y.

HAnover 2-0433-45

Member*: Principal

—

Co., Inc., 225 East Mason
St., Milwaukee 2, Wis. Also avail¬
able is a report on Jim Walker

Broadway, New York 4, N. Y.
•

—

Wall

Loewi &

Members: Netv York Security

TELEX 015-220

—

St.,
5, N. Y. Also available
Co., Inc., 74 Wall

bulletin

Aviation

Co.,

St., Chicago 3,

-V''

New York

Tegtmeyer

South La Salle

105

Colby Letter, 31
Boston 9, Mass. Also

Analysis—B. N. Rubin & Co., Inc.,
06

Grace Canadian Securities,

Tin

—

Analysis — Carleton & Co., 262
Washington St., Boston 8, Mass.

San

Associates-

Co.

Chicago 3, 111.

Manufacturing

—

Schwabacher

St.,

Insurance

—Comprehensive report (without
imprint)—Fahnestock & Co., 135

through and confirmed by
Co.

C.,

"-vYi

Brokers, dealers and Financial Institutions

Corp.

Montgomery
4, Calif.

Analysis— The
Milk

Northrop

Vancouver
'

Specialists in Canadian Securities

—

Calif.

dustry, Great American Insurance,

*Prospectus

Inc.

Mayer

Montgomery St., San Francisco 4,

William*

Bulletin

H. GodDevonshire

Co.,
St., New York 5, N. Y.

Lockheed

able

Inc.,

—

Memorandum—Francis I. du Pont

dard

are

Corp.,

Texas

Texaco,

and

Co.,

St.,- Philadelphia

available

Also

tric.
Edison

Detroit

data

Locust

Bulletin

—

Taggart

115
Y.

Com¬

Insurance

Tennessee
A.

Co.,

5, N.

—

market.

1516

Corp.

New York

Casualty

Charles

Peabody—Memorandum—

Products

Carreau

—

memoranda

Cities

Capital

York
are

Inc., National Bank of Commerce
Building, New Orleans 12, La.
Loyal
American Life Insurance

Walston
Lehn

current

its

Super Food Services Inc.—Analy¬

Kollmorgen Corp.—Review—L. F.
Rothschild

recommend
price of

well

very

Counter Market.

Sprague

Memorandum

—

Bacon, Stevenson & Co., 39 Broad¬
available

can

stock

Spencer
randum

Cruttenden,

Corp.—Memo¬

Baruch

randum—R.

Woodcock,

Philadelphia 9,

St.,

Lockheed

Electric

—

French,

Pa. Also available

Oil &

Broadway,

Memorandum

—

available

—

5, N.

Corporation

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

Jefferson

Analysis

—

Gude, Winmill & Co., 1 Wall St.,
New

(N. Y.)

Interchemical

Manufacturing

the

conditioning

Northrop Corporation—Analysis—

Pa.

Nordeman &
Co., 115 Broadway, New York 6,

fields

commercial-

and

water

C. M. Oliver &

dum—Boenning & Co., 1529 Wal¬
nut

household

Analysis—Hooker & Fay Inc., 221

Texas.

Hollingshead

ipost

in a rapidly
growing
field.
I
feel
that
its
growth potentiality both in the

—

analysis
Company.

Pittston

Gulf

situation

Company—Analysis—J.

Equipment

Analysis—Cohen, Simonson & Co.,
25 Broad St., New York 4, N. Y.
Also

seems

promising

Fuel

$535,000

level, equivalent to about 92 cents
per share.
:
The common stock of Culligan,

& Co., 42

reviews

are

at about the

to be

pany

15V2. It is traded in the Over-the-

—

Corp., 15 Broad

St., New York 5, N. Y.

vestornews"

Servonics Incorporated

Canada.

Ont.,

Instrument

—Analysis—Bruns,

randum

Narragansett Capital Corp.

Toronto,

Ltd., and Nissan Motor Co., Ltd.

available in the

Electronics, Inc.

Memorandum

—

Horn & Hardart Company

The

Interstate

St.,

General

Ltd.,

dustries.

Stocks Currently Popular—

Industrial-

Matsushita Electric Industrial Co.,

6, N.
analyses

Co.,

Ltd.*

Kansai

Inc.,

Co.,

Power

Co.,

data

Ltd.

Mines

and

Analysis

I Like Best
Continued from page

industrial

General

Steel

Geco

Cac-

—

Inc., 42 Broad¬
4, N. Y. Also

York

are

Data

—

—John M. Easson & Co., Ltd., 217

—

Nickel

1Y.

Nippon Sheet. Glass Co. Ltd., Nip¬
pon

Development

Ltd.

Electric

way,

Gas Producing Co.

York
are

Iron

Electric

Kid¬
& Co., Inc., 1 Wall St., New

Puerto

Survey
Securities Co., Ltd., 61

—Nomura

4, N. Y.

St., New York 5, N. Y. Also

ernment

Ltd.

Japanese

Bureau

Co.,

Rayon

Kurashiki

and

Ltd.

Co.

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

bulletins

Securities

maichi

used

stocks

issue

Puerto

Japanese

over-the-

Quotation

Industry

current

der

with I spe¬
cific recommendations—Hemphill,
ministration

Dow-Jones

the

and

National

tion

Analysis—Draper, Dobie & Com¬
pany,

the

Co.,

available

Securities

—

Co., 45 Montgom¬
is

industrial

Averages, both as to yield and
market performance
over a 20year period — National Quotation
Bureau,
Inc.,
46
Front
Street,

outlook

compari¬

listed

the

industrial

counter

Pine

Street, San Francisco 6, Calif.

ery

Averages

Folder

up-to-date

used

Reader"

—High yield

favorable

with

stocks

—

Street, New York 5, N. Y.
Five

between

Paper

Company.

Favored

showing
son

—

bulletin

same

Bobbins.

Smith

New

way,

review

York
is

Camera

toma

Street, New Over-the-Counter Index

Broad

Co.,

Co., Ltd., 149
Broadway, New York 6, N. Y.
Also
available
are
analyses of

Inc., 29-28

Co.,

Packing.

Glass

—Daiwa

Vawata

Long Island City 1,

41st Avenue,

Asahi

Canon

Review"—Paine, Webber, Jackson
&

New

available

1961—Dis¬

Stocks

cussion—Blaha

sues

—

Electronics—Re¬

Amphenol-Borg
view

Broadway,

N. Y.

California

Canada.

Co.,

Bulletin

—

Ristine

The Security

Inc.

Bay

American Bosch Arma

Also

Montreal, Montreal, Que.,

Bank of

111.

—

the

Sulphur

Rayon.

South La Salle

121

Chicago

uel, Deetjen & Co., 120 Broadway,
New York 5, N. Y.

—

Memorandum

—

Market Outlook—Review—Eman¬

Highways

Canadian

❖

—Purcell

Low Priced Growth Stocks—20

Business and Finance in Canada—

1961—Lamborn &

Wall

Chicago—

pecker

International

chione

for

McKesson

Freeport

Sumi¬

tronics); Kirin Breweries;

Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y. '
Bank and Trust Companies

(elec¬

Limited

Hitachi

■■■■

Phil¬

Co., 15 Broad St., New York 5,

Ill

Outlook

—

Bank

Flintkote—Review—F.

World

Situation

Co., Inc., 120 South La Salle St.,
Chicago 3, 111.

Broadway, New York 6, N. Y.
Sugar

analysis

Memorandum—A.

Se¬

—

& Co.,

Haupt

Petroleum.

First National

Securities

Sheltered

Tax

LITERATURE:

FOLLOWING

THE

PARTIES

INTERESTED

SEND

WILL

MENTIONED

FIRMS

THE

THAT

UNDERSTOOD

Guide"

Co.,
120
N. Y.

Upham
&
York

same

List

—

New

Also in the

available

lips

"Pocket

Broadway,

AND RECOMMENDATIONS

St., New

■

Discount

issue

current

INVESTMENT LITERATURE

Wall

Thursday, December 1, 1960

...

of Security

Dealer*

Broadway. New York 4. N. Y.

Volume 192

Number 6008

The Commercial and Financial Chronicle

...

stock

Christmas Shopping Notes
list

gifts to

buy but some listed and

With

National

Gross

full

with

consumers

purses.

Product

billion annually and
$400 billion in Personal In¬

around $500
some

come

with

loaded

are

wherewithal

for

super

the

bountiful

Over-the-Counter

Christmas

buying in 1960. Never
been so varied,
wrappings so elegant, and early
shopping so rife.
And what an
assortment
of < opulent
baubles
selections

have

has

creating

been

achieved

attractive

products and
them
effectively

merchandising
with the help of high advertising
budgets. The current fiscal year
ends

March

30.

Indications

word

about

famous

merchants

Marshall Field &

the

largest

Schroder Bank

business

the

Co.

most

America,

conducts

large

SAN FRANCISCO, Calif.—Miles
Burgess, Russ Building, Western
distributor of Group Securities,
Inc., announces the appointment
of

Robert

branches.

stores

Seattle

(but
for

dress, matched luggage for an en¬
family, mink dog blankets,
electric
plate
warmers
and no

rent year may reach $1.20

This

year

with

also

has

Milwaukee

and

Directors

of
J.
Henry
Banking
Corp.
and
Schroder Trust Co., New York
City, have announced the elec¬

Schroder

tion

John

William

Presidents

mann

time,

Phillips

epresenta-

states

named

and

Kearns

Karl

Treasurer.

Senior

and

Vice-

Leh-

the

same

Trenbath

Trust

was

Officer

Comptroller

Schroder Trust Co.

Washington,

Mr.

Oregon, Idaho

the two

and

McNamara

Northwestern

Montana.

Kearns

banks, Mr. McNamara is

charge of the Securities De¬
partments of the institutions and

per

doubt, pressed duck served under

The

Anderson

merchandising tive, effective
Chicago through its Dec. 1, in the

huge city block downtown store
(2 million square feet.), and five
suburban

Joins Miles Burgess Names Officers

retail

account

fOr those "who

Cadillac

have everything!"
match
milady's

tire

Actually,
will

the

most of
done
along

tional lines.

buying
tradi¬

If you buy cosmetics

for the Little Woman you're quite

likely to patronize Revlon, a com¬
pany with a record of remarkable
growth.
Revlon has consistently
outperformed the cosmetic indus¬
try for the past 10 years. Its Liv¬
ing Lipstick, Love Pat compact
make-up, Satin Set hairdo, Top
Brass men's toiletries, and Schick

(Revlon
common
stock)
shopping list.

razors

27%

owns

that sales

are

provide

of the

quite

Revlon, Inc. has expanded its
earnings consistently and for 1960
should show about $4.40 per share
against $4.19 last year. Dividends

are

now

against
$1.04 for 1959. Stock at around 16

reflects

unusual growth rate in

quite specialized business.
All

Rolls-Royce hub caps!
~

Christmas

gifts

come

wrapped, and in this department
there's a lively company called
Papercraft Corp.

This enterprise
making, at an expand¬
ing rate, all the gimmicks for
fancy Xmas packaging—gift tags
("to Uncle Cuthbert from Marylyn") shiny, colored papers, rib¬
has

been

bons of all colors and widths and
bows the like of which Hiawatha
never

supply for adhesives Papercraft recently acquired the LePage
enterprise in Gloucester, Mass.,
long known manufacturer of glues,
as
a
byproduct of the fishing
industry in that city. Here Papercraft is making adhesives and
cellophane tape. Papercraft man¬

agement is aggressive and progres¬

past four' years.
Present rate is
$2.00. Revlon
advanced
briskly

sive

last week and sells

the

year's
high at 69. But it's an enterprise
exuding growth, and, bought judi¬
ciously, it might prove an accept¬
able gift from you to you!
<:
Many businesses and individu¬
als like to

near

give cigarette lighters

which again brings a leading com¬
pany

to mind—Ronson. Al¬

name

though

Ronson

has

encountered

substantial

competition since its
early
dominance
in
matchless
ignition of tobacco, it still leads
the field and

refill

and

fluids

does

brisk repeat

business

flints

and

well. Its latest Varaflame

lighter, burning butane, is an in¬
creasingly popular favorite and a
well styled product. Ronson has
diversified
substantially
with
around
from

25%

of sales

now

coming

electric

appliances—electric
razors for men and women, elec¬
tric hair dryers and shoe polishers.
Ronson Inc.

best

should

year

around the

rack

its
sales

with

1960

$40 million level and a
$1.20 per share. At

net of at least

11%

paying 60c, Ronson Corp. is
illuminating value.

1,129,837 common
(traded over-the-counter)
have
a
likely look about them
even though, at 34, they sell at a
quite high multiple of indicated
1960 per share net of about $1.15.
shares

Toys and Games

without

Trains

toys.

still popular and so is

which makes them.

Corp.

management here gives the

new

dynamic look
(until re¬
year, a top officer
in our military missile and rocket
program) is now President. Which
accounts no
doubt, for the fact
company

Medaris

General

and

this

tirement

that

Lionel

sells

now

missile

launching toy submarine, and a
rocket
throwing
railway
car.
.Lionel is moving forward in both
mechanical toys and in electronics
and its Common, which has been
a volatile performer, offers some
attraction

non-dividend pay¬

ing speculation.
Over

the

Counter

the

else to
Heublein,
Inc. is famous for its pre-mixed
cocktails which need only to be
you

cocktails

chilled

some

for

all-time high.

better

even

iced—and

Ander¬

before
entering
the

son,

Mr.

securities

the banks' government bond port¬
folios and money market opera¬

busine

you
are

you

bear

some

mind

that

there
in

For the past seven years Mr.
Anderson has been with the Port¬

in stockings for

land office of Foster & Marshall,

excellent

well

values

to consider.

leading that organization in
four years.

With B. C.

Names Officers

Christopher

(Special to The Financial Chronicle)

HONOLULU, Hawaii — The In¬ KANSAS
CITY, Mo. —Leonard
Society of Hawaii, meet¬ N. Griffith is now with B. C.
ing in Honolulu, has elected Denis Christopher
&
Co.,
Board
of
Y. Wong of Dean Witter & Co., Trade Building, members of the
President for the
New York Stock Exchange.
coming year.
Thomas
N.
Fairbanks,
Jr.,
of
Bishop
Securities,
Ltd.,
was American
Global Investors
elected Vice-President, and Wil¬
liam F. Ryan of Schwabacher & American Global Investors Cor¬
Co<, was named Secretary and poration, 179 Dyckman Street,
New York City has been formed
Treasurer.

vestment

With Cruttenden, Podesta

continue

ness

Other

who

Brogtfway.

has

been

Mr.
the

Lumaghi,
investment

business for many years was

Dean Witter &
Central Republic Co.

merly
and

with

has joined
&

Goodbody Staff

Bessenyey, Burgis B. Coates,
J. Larssen, John T, Lyons
Philip H. Robinson as Assist¬
ant Vice Presidents; John S. Eddy
as Assistant
Secretary, and Arnold
and

Hoist and Gerhard H.
Assistant Treasurers.

This

White, Weld

Arthur E. Palmer, Jr.,
admitted

general

in White, Weld & Co.,

ties Co.

the

New

York

Stock

Mr. Palmer has been associated
with the New York

Winthrop,

since

Roberts

law firm of

Stimson,

Putnam

graduating

has

in that firm

been

since

Hodes,

can

director of the Ameri¬

Co.

Ice

November 29,1

450,000 Shares
fcRMENTATf0/v

stock

While the posh cocktail parties
of the Holiday Season will evoke

glasses, wassail bowls

and tankards, the myriad office
parties will settle for. paper cups,
quite possibly supplied by LilyTulip Cup Corp. Here's a real au¬
thentic growth stock with a long
record of doing well for its share¬
holders.
Lily-Tulip is now the
largest factor in its own special¬

ized field and turns out

over

C*fMIC At*

CHEMICAL COMPANY INC.
Common Stock
(Par Value 250 per

Share)

600

different sizes and shapes of cups,

containers, buckets and lids. Plas¬
tic coatings (instead of wax) now
permit use of paper containers for
hot liquid or food items as well
as cold, and vending machines are
opening up a whole new vista of
sales markets.

Price

$10.50

per

Net sales and net

earnings have

toy field i? Milton Bradley
Company, largest publicly owned

advanced with escalator like pre¬

the

Copies of the Prospectus may be obtained in any State from only such of the undersigned
and others as are licensed or registered brokers or dealers in securities in such State.

cision for years. For 1953 sales of

manufacturer
world.

Santa

been

Its

Games
and

games

Milton

favorites

are

has

Bradley

prospering in recent years.
sells arOund 73 and

common

pays

dividend

plus

stock

extras.
Also

over

the

counter is the

stock of Mattel, Inc., a young

and

$54.6 millions created $3.08 mil¬
On sales of $89.5 mil¬

lions in net.

lion

doubled

1959

than

million.

This

net

$6.61

sales will be well over $90
million, and there'll be another

year

new

mon

high in net.

Lily-Tulip

com¬

sells at 47 and pays $1. The

P.W. Brooks & Co.

Incorporated

partner

Named Director
James

extra.

the fanciest

1946.

over-the-counter with
a

from

law school in 1935, except for war

drunk

80c cash dividend and

Exchange,

it has been announced.

is neither an offer to sell, nor a solicitation of offers to
buy,
of these securities. The offering is made only by the Prospectus.

20 Broad

St., New York City, members of

for¬
elected
Co. merly with Keller Bros. Securi¬

that for you!)

has been

partnership

of the

Palmer Partner

announcement

any

Laube

a partner in Hardy
He was for¬ & Co., New York City, has been

the staff of Goodbody

Co., 125 High St.

announced

Erik

ST. LOUIS, Mo.—Charles G. Lu(Special to The Financial Chronicle)
maghi has become associated with
Cruttenden, Podesta & Co., 316 BOSTON, Mass.—-Max V. Cates
North

appointments

service.

Joins

for

at the same time included Francis

the investment busi¬

Colette M. Manning.

responsible

mu¬

tual fund sales in three of the last

Hawaii Inv. Soc.

tions.

share of about $4.75 managed the
against $4.51 last year. Dividend John Hamrick
Robert H. Anderson
of $2.50 is well protected and the Theatres
in
common at 54 appeals to conserv¬
Portland
and
Tacoma, serving
ative income-minded investors.
finally as manager of the OrWe hope you enjoy your Christ¬ pheum Theatre and assistant to
mas shopping, and we just wanted
the president in Seattle.

stocks

Lehmann

one

you,

(they
In view
big swing to gourmet buy¬
ing in food and drink Heublein
Inc. seems well placed and has
been turning in a splendid earn¬
ings
performance.
Last
fiscal
year (12 months ended 6/30/60)
per share net was $2.31 up 40%
over
1959; and for current year
our guess would be $2.60.
Stock
don't

Christmas

about

thinking

are

Lionel

think

don't

drinking

perhaps you
ought to look at one or two pur¬
veyors of spirits. If you like bour¬
bon, James B. Beam Distilling Co.
common selling at 24 and paying
30c plus a fraction in stock seems
attractive at only 8 times current
earnings.
mix

should

Mr.

areas

Fiscal

(Special to The Financial Chronicle)

The holidays are a time for so¬
ciable

Chicago
of sales).

which ended 1/31/60 showed

sales and net at

Holiday Beverages

sells

You

the

and

year

the

80%

To round out its mate¬

saw.

rial

have been increased in each of the

one

running at
above $20 million annually (250%
above 1956 total) and net for cur¬

•

Robert Anderson

1959.

vigorous company specializing in
more
expensive toys — realistic
shooting guns, big dolls with sleek
synthetic hair, and all sorts of
musical toys.
Rapid growth at
Mattel

1955, and again 2-for-l
(You might call this
gilding the Lily!)
We can't begin to cite the tens
of thousands of important retail
establishments
throughout
the
land where seasonal shopping will
no doubt set all-time
records; but
we
would like to say a timely
in

Market companies in line to benefit from your Christmas expenditures.
We've got a fine country here full

split 3-for-2 in 1954 and

was

2-for-l in

By Dr. Ira U. Cobleigh, Enterprise Economist
Not

(2181)

Lee Higginson Corporation

-n

^CTmjtrogiKy*^

*•<:• *,:«;**»*• ''r'V vr

'flu"*/"1*'™'' wr<.")*--;v ^

¥■

An Investment Program

area

Industries

Litton

bilities

sys-

wide

New York

participation in the roadbuilding program, I prefer the
cement stocks at present over the
machinery group and Marquette

assist an investor seeking a
portfolio geared for reasonable income and moderate
growth. Some of the over-all background assumptions made include
the view that the new Administration will practice more economic
Analyst proffers advice designed to

>.■<

Cement

stock

common

...

Ideal. But

that

will resolve into stock values dur¬

and

ditions
form

unsettled

litical

—both

investment program

industries

•

to complete.

and

com¬

pre-

are

tions through¬
out the

time

the

will

forces

the

had

have

Roosevelt's
investors

policies of the
incoming Ad¬

cumulation

ministration.

effect

their

of.

de-

inventory

economy,

take

settled

because

world

problems to be
in the dynamic

these

for

wait

which

sure

this

live

can

book, the

—

ties

have

that

has

States

depression when building was

high

have

level.

seen
I

/\«r*

Many

you

pre-election

!<-*

*■*

!»"*

and

may

wmi

who

new11 a^d^equally8 difficult lm-„
T
t
Let

us,

thprpfnrp

therefore,:

during

fnul

orthodox

economic

campaign.

the

Fo/Wai

know

Rnarrt

ac^'thp

that

af-

led to believe

were

world's

^hr^ ^ P,PXlfnt FkPXwir

homebuilding and the level of
business pretty much fluctuated
together. We now have an easier
m0ney policy and
a Democratic
platform
pledged
to
stimulate

n,,r

Otw

fnlufl
term
goal's

,»H11

have

sizes
of

which

are

empha-

rathe"

Mr.

ly,

also that supplies of most

commodities and

products

than

speeches

bring

1 be

Pless'keen.

Kennedy's

TWence

there

mind

investor interest.

several

great deal of

The Democratic

platform stressed defense spending, slum clearance and housing,
/IVMIII
nrJiiAn+tAm
onrl
roadbuilding, education and oldage medical care.
nm

Now

let

have

maintained

been

fected. Two factors

phases

avoid

ing

rather two

have

factor

same

responsible for declinmargins: additions to

profit

Our analyst, has made some

esting

with

inter-

about : these

observations

leyel

must."

the

industry

•*

projects

rule

attempt

while

times. We,
those

defense

grams

it for

jective

Edison.

orders

stock.

for

different

therefore, try to select
which

are

!•

leading

its,

favorable

assuming

con-

Also,

growth

utilities

like South Caro¬

Gas

at
in

its

since

least
the

rate

equal

same

terri-

„

Banks and the Counterparts
An industry that is often over-

the

The Martin Co.
missile

for

"mix."

the

ten

past

years

rate of growth in operating

income

reasonable

Retail

Field

the

earn-

In the retail field the
is

supreme.
«

consumer

We cater to him,

and

moderate

growth

advertise, we even conduct a kind
of psychiatric examination on him
by
canvassing
his
intentions.

despite the incoming administration's program for lower

interest rates. Thus, First National
City Bank represents reasonable
value and that Chemical Bank
New York Trust will soon begin
TV

/tri.

.to

i_ -i

announcement

any

is neither

of these securities.

offer

sell,

solicitation of

offer to buy
The offering is made only by the Offering Circular.
nor a

NEW ISSUE

November 30, 1960

reap

New York City banks stems from

permission

100,000 Shares

erates

the

fornia

Exchange

Nassau

economists

many

are

a business recovery iii
the second half of 1961. If we ac¬

cept this timing, we may conclude
that

be a little early
portfolio
heavily
heavy-goods stocks. And yet
may

weigh!

cannot

..eliminate

from

balanced portfolio.

them

entirely^

and

loan

Financial

present, we prefer to limit
our participation in heavy goods
to the
larger and more .repre¬
sentative. companies. In the expec¬
tation
that' the
inventories
are

being reduced and that steel

op¬

erating rates are scraping bottom,,
would

include

ment

17. S.

Steel

Financial.

reduce

and National
aggressive invest¬

and

also

good

quality.
has

In the automobile group Ford

shown

ing

good record in introduc¬

compact

Motors

General

and

cars

offers

satisfactory indi¬

cated return.

•;

;

Portfolio Composition
In

I suggest that ail
all common stock diversi¬
portfolio seeking reasonable
summary,

average

fied

income

and

should

moderate

have

now

growth

the

following-

approximate proportions:
(1)

About 45 to 50%

•

in defen¬

sive-type stocks such as utilities,
banks, consumer goods.
(2)

About 30

35%

what

term the "intermediate" group,
less vulnerable to cy¬

industries

clical influences than heavy goods.
Such
industries
would
include

oils,

drugs,

papers,

cals.

»:

and

second

third group. I

hope

that

distant.

heavy
'

course,
be willing to
of the funds from the

some

first

opportune time

would,
shift

chemi¬

some

*■

(3) About 15 to 20%
goods industries.

the

time

that
is

the

groups
sure

expenses

not

too

■•;/:■

Mr.

Bacon, Whipple Adds
'

(Special to The Financial Chronicle)

CHICAGO, 111.—James T. Hacker
Bacon, Whipple & Co., 135

is with

South

Salle

and

lower

office

St.,

members

the New York and Midwest Stock

Exchanges.

Joins McDonnell Staff
Financial Chronicle)

CHICAGO, 111,—Byron M. Marcus
has

joined

nell

Salle

the

,Co.,

staff

Inc.,

208

McDon¬

South

St.

They

auto¬

proportionate

administrative costs.

Paper Stocks

papef stocks have alternated

between

talk

all

Fergenson before the
Association of Customers' Brokers, New
York City, Nov. 22,
1960.

Wm. A. Fuller Adds

some

mation

for

quality

field

Federa¬

•

(Special to The

savings

popularity and unpopu¬
larity and at present are well be¬
low their recent highs. Statistical
analysis suggests that the industry
has shown a growth trend both in
dollars and tonnage but that earn-

projecting

area.

territory diversifi¬
cation, they can spread larger
loans among their units and can

The

Stock

"growth"

Western

provide

Copies of the Offering Circular may be obtained in any state only from such dealers, including
the undersigned, as may legally offer these Securities under the securities laws
of such state.

Members

tion, First Charter Financial and

Price $3.00 per share

Pacific Coast

such

Great

JNVESTORS

expand

prefer the larger holding com¬
panies
operating only in Cali¬

COMMON STOCK

ALIFDRNIA

EPPS INDUSTRIES, INC.
.

mentioned,

observa7

that

tion

and Westchester. Firstamerica op¬

($1 Par Value)

not

machine tools and railroad equipment. Earlier j; made the

the benefits of recent
mergers. Additional attraction for

This

have

•

utility stock, that is, having
defensive-type properties. It sur¬
prised me, as it might surprise
you,
toMearn from our analyst
a

that

any of. the heavy-goods industry
—steels, metals, autos, machinery,

cy-

tory and yet it sells at a lower ings °f member banks (1947-1949
multiple of earnings. I do,
of equals 100) was greater than that
course,
recognize that so-called of electric utilities although more
growth" utilities have advanced cyclical. Consequently, our ten¬
relative to the market,
dency is to favor bank stocks for

Aviation

contractor

B 70 program and

industry

example for this ob¬
is
Southern
California

Electric

far

Hercules Powder can be held for
the long term or bought at opportune prices for cyclical im-

higher per-share'

other

those growing prolikely to receive infunding. In the industry

-»

the

the
paper
cyclical
as

Paper and Kimberly-Clark
strong consumer acceptance
of their products have not shown
the cyclical characteristics of the
industry-.*: /•; r,4 rv+ \

per-

with

for

lina

help

companies

favor North American

"growth"

into

itself

earnings. Qne need only to review •
the recent action of Americah looked, probably because it is
Tel & Tel and Long island Light- regarded as "staid and perhaps
ing t0 realize the effect a respite because its stocks are unlisted is

most

creased

increase

to \ resolve

seems

increase in gross without

reflected

need

some

others

companies

cerned

blend

than

shown

moderate we can ex- provementthe growth in revenues to

pect

technological progress and it falls
neatly fn c 0ntra-cyclical measures

have

comes more

high

we'need"

much

'■

Scott

Steel

First, petrochemicals have been
competitive since 1923. Secondly,

investment

two factors,

sell

capacity and the competition from
oil companies in petrochemicals,

can

of: the

been held

Once the common stock reaches
an acceptable ratio of the capitalizatjon ancj financing^tops or be-

the industry on an overa11, basis'

campaign

to
is

sales

* ^ °f coramon price of the common hanking. stock somewhat akin to
A portfolio analyst views
bank
have
the stock financir* can

spending

they tend to favor

issues that could affect industries
in which

group have

clical aspects. My feeling is that
earnings, owing to a large leading chemicals such as Allied
extent to common stock financing. Chemical,
Union
Carbide
and

companies.

cZgia plci^

growth in the public sector

the economy. Fina

assume

which

commensurate

^ivhich

those

Sqciety"

income

J..

utilities

good

as a

moneSrrnnhcv
?°''< reprf.Ration »n. «U8 ;inwi Sh?n dustry, which is a prime target
finan
to^,the
se}ect Johns-MJlnlone
' 7^ ,°
Gypsum and a

described in Prof. Galbraith's "Affluent

find

°f a11 J-yPes sjnSle
units, apartments and slum-clearprojeeits. The building of
?fh?ols a?d their furnishing and
}uelu e,q,ulpping.shou'd also help
the building
equipment

consider

stocks

account

•

assumptions: we shall assume that
the new Administration will be
fairs than

might

Electric

need

v
.

group

°? television in which Dr. Saul- their stock dividends; those who operations, at about 70% in plannier
nier and
Galbraith agreed wish growth may retain the stock ning new plants with the result
malcp several
I-°\
make several on which they did agree) P+£n+ with some tax advantage. For 'ap- that profits should be satisfactory
that preciation
possibilities We W to if '^les continue to grow. All this

arise.;

will

nonderables

that

supplemental stock dividends
helpful
to
many
portfolios,

Those

oil

substantially from their
Company reports indicate

highs.

its policy of a stable cash dividend

debate

I'M

Gas

•

Equities;

the

declined

Northwest but otherwise
taking a constructive view

Rochester

•

discuss

commissions but profit margins have been af-

toward the electric utilities.-

the

had

never

are

of which escapes

done.

and; Chemical

shall

Chemical stocks

utility too close to TV A or in the

read

ago

utility

and

sumers

Favorable

years

name

I do not view

recognize - the
tremendous ;*job
modify
which the privately owned, utili-

that sought to prove that

me.

United

thing

one

Some
'

cannot

analyst

portfolio

the

considers

Who

successor.

abuses

Pacific

Fergenson

factors

these

yet

M. C.

•

about the plans

wonder

Kennedy,
a

President
utilities,

late

attacks

Oil

of unsettled political conditions in

companies and the financial
are things of the past; com-

ing

groundwork

portfolio.

Deemed

Issues

evaluate

the

construct

diversified

our

laid

now

which

to be invented
to

have

computer
type yet

log
of

or ana¬

tending

with

Asia and Africa we prefer
Asia and Africa we prefer the
domestic integrated oil companies.
Competition-is becoming keener
and marketing is gaining in importance 'over production.
Our
preferences are Continental Oil,
Phillips Petroleum and Shell Oil.

the situation with alarm. The hold-

upturn in capital
if not already in
evidence, will be anticipated. We
course

Truly,
would

digital

and

its

run

himself

expenditures,

have

will

the

Remembering

contracyclicai

*—offont

and

ments

briefly by saying that

stock as a bond
bond
a balanced portfar he has been right.

f0R0 an(j

presumably

•

utility
with growth in

upturn in business m
the second half of 1961.
By that

world,
appoint-

■

,
-

Stocks,^.

for

pay
a ; premium
degree of safety. 1 ]

;

•

for .Utility

portfolio analyst can overlook utilities. The average investor

Generally, economists

dieting

inter-

willing] to
some

treats

panies.

po¬

condi¬

Case

plat-

Kennedy's

Mr.

speculative appeal for the

sched-

project is

uled to take 30 years

con-

into

The

should keep in mind

whole

this

ing 1961 include gold flow, Fed¬
eral
Reserve
policy,
foreign
competition,

...,

„

: —

economic

policy,

that monetary

imponderables

.....

One issue in this field has sofrie

the

Some

of the large California mediate term. Last year Aldens "growth" stocks. In the industry
we
would
expect International
issue for water facilities initiated a revolving predit plan
Zellerbach
and
naturally dr^ws attention to the that should raise, earnings to a, Paper)r.. £rown
Mead Corporation to participate
cement companies nvith facilities higher plateau. Here, too, ..there
in a cyclical business recovery.;
in that State -—Permanente and are convertible bonds for those
bond

Mr. Fergenson names
the industries and representative issues which he believes will fare
well, and the reasons therefor, and indicates the relative proportions
: "
of each type in his suggested portfolio.1

■

choice.

first

our

approval

orthodoxy than indicated during the campaign.

and Associated Dry Goods with a that capacity is ample and that
nice record is not unreasonably price competition may be a prob¬
lem at times. We are, therefore-,
priced. .
-_i

For

Rothschild & Co.,
City, Members New York Stock Exchange

By M. C. Fergenson,* Security Analyst, L. F.

may

micro-

area

components.

wave

Thursday, December 1, 1960

ings have described more'* of a
cyclical pattern. I suspect that
increase costs, it will also paper will continue to experience
increase purchasing power. Gim- a good rate of growth in tonnage
hels, we think, sells at a reason- and that per-capita consumption
able price in relation to earnings will continue to rise but also think

its

navigation and its capa-

...

While Mr. Kennedy's proposal to
raise the minimum wage to $1.25

for

position in inertial guidance

Current Prospects

glamorous

favor

terns for

Based

»•)

The Commercial and Financial Chronicle

(2182)

-(Special

to The Financial Chronicle)

CHICAGO,. 111.—Daniel

kaus

the

South

the

has

been

William
La

Fuller

Trinstaff

Co., 209
St., members of
Stock Echange.

Salle

Midwest

With

added

Goldman, Sachs

(Special to The Financial Chronicle)

CHICAGO, 111. — James C. Baird
III has become connected with
Goldman, Sachs & Co., 135 South
La Salle St.
—

Volume 192

Number 6008

The Commercial and Financial Chronicle

'(2183)

the intermediate

Future of Municipal Debt

cycles and long-

accordingly,

These

cycles have lasted from

By Arthur Levitt,* Comptroller, State of New York
'

r
,

•'

•

amounts of

enormous

State

and

ming

from
it

Favors

other

Maintains a growing proportion of 7

increases,

urbanization,

and

rising demand far better State and local services.
tains

approval

impossible to

educational facilities.

higher

;

discuss state and

that

accepted

im-

capital

many

government financing and provements are so costly that only
the implication of that financing through long-term borrowing can
to all short and long term bor- their
construction be achieved
local

rowers.

and

current

future

Policy

"Pay-As-You-Go"

ImprovementsWhile

will, in the

ahead,

there

agreement

im-

ditures

Gov¬

that operating

expen-

should be financed out of

agreement

there is

in the

such

of the fi-

case

ernment

nancing of capital improvements,
Theoretical
arguments for total
Hon. Arthur Levitt
voters of the
pay-as-you-go
financing have a
United
States
superficial appeal, but in looking
recently not only had to choose a at all levels of government, it is
President, Congress and various quickly apparent that it is imposstate officials, they also had to sible
to
maintain total., pay-asThe

this field.

over

$3.6

municipal bonds issues

billion

disapprove

approve

amount ever put be-

—the largest

fore the electorate.

financing without curtail-

you-go

the
construction of vitally
needed facilities. This is particu-

jng

Philip

Hunter

government money

require¬

cause

sonal

Trust

increase in supply

absolutely

borrower.

Mr.

Because of the sales to individuals, dealers are often confronted with sizable inventories
of municipals. A knowledge of.
the size of these inventories is
also important in guaging the
market.
question

future

retiring

Brown

general partner but will

limited partner.

He continues

director of the bank's overseas affil¬

iates, Chemical International Finance, Ltd., and Chemical
seas Finance
Corporation.
Mr. Brown was formerly a general partner of J. H.
ney & Co.

Invaluable to a potential municipal

The

Charles

Foy

Foy retired recently from the Chemical Bank New York
Company after 32 years in charge of its Latin American

business.

Again, within lim¬
knowledge of these sea¬

'patterns

Marscon, Jr., is

Amos

Mr.

securities.,J
a

S. Nelson

continue

the Fed-

itations,

unanimous
^ «i unnn v ^ ^

current revenues,

pact of the
Federal

eral

facilities.

and

the

large

and

In the month of September, bond

yields and prices fall
ments

money

rival

regular

are

enough to warrant special consideration. Thus, during the month
of February . when. Retirement

over

cost

the

years

which

the

increasingly
the

to the short cycle,
recognize the existence of
pattern in bond yields

demand side of market increases,
prices go up, and bond yields fall,

burden

generations who will be enjoying

market

addition

also

funds seek to buy securities, the

undue

have become

important

seasonal

that it is

issues

bond

there

because

the

taxpayers.

state and local

same

Another, of course, is
more equitable to spread

without

because

♦. we

}

would like to

the

but

well,

governments and corporates.

Forgan

special factors which operate
in the case of municipals which
do not operate in the case of othfer

policy.

railroad commuter problem, and building

been

This

Glore,

are

expanded program of bond financing for highway construe-

tion, meeting the

as a general and limited partner
Co., 45 Wall Street, New York City, and
Charles E. Brown and Philip S. Nelson have been admitted as
general partners of the investment banking firm, it is announced.

Col. Levitt main-

"pay-as-you-go"

inflexible

Amos B. Foy has been admitted

fwww.ssv*'

markets

not

duration.

public's

the

bond

they have

local, to Federal debt, will be further accelerated, stem-^
population

peak
trough of about 20 basis points.'
The short cycles for municipals
have
had
their
counterpart
in

municipal bond issue proposals highlights

rising trend of such borrowing.

New York State's chief fiscal officer declares voters' recent

short

weeks with fluctuations from

Glore, Forgan Admits Partners

trends and must always be

range

viewed

Over¬

Whit¬

Nelson, who has been sales manager of Glore, Forgan &
1957, was previously associated with Lehman Brothers

Co. since
three

for

Mr.

years.

Marston, who has been

become President of

general partner since 1953, will

Eurofund, Inc.

bor-

rowings by the State of New York

J. H. Latham Forms Co.

has not been settled. The concept
NEW IBERIA, La.—John H. La¬
of total pay-as-you-go is the antham is
conducting a securities
nounced
public
policy
of
this

MacTavish to Act
As Consultant

business from offices at 701 Prioux

this ruling is
Street
under
the firm
name
of Henry J. MacTavish, Vice-Presi¬
The approval of most of these New York State.
wrong.
We cannot provide the
John H. Latham Investment Co.
dent
of
the
Chase
Manhattan
issues coupled with events of the
Actually no general rule about»facilities so desperately needed if
Bank, will avail himself of the
past few years makes it unmis- borrowing can cover every situa- we, are to jiye within this fiscal
takably clear that state and local tion. The decision must be^made strait jacket.;.'
Metropolitan Brokers Open option tb retire under the bank's
.
early retirement plan on Dec. 31,
governments will make increasing on the merits of each individual
Thm
overwhelming acceptance WASHINGTON, D. C.—Metropol¬
1960, and will establish his own
use
of long-term borrowings to case>
jt is just as foolish to pay by the electorate of Proposition itan
Brokers, Inc. are engaging in business as a consultant in cor¬
finance public construction.
for all capital expenditures from No. I which was a bond issue to a securities business from offices
porate financing and reorganiza¬
T oral
versus Federal
borrowed funds as it is to pay finance the purchase of recrea- at 919 Eighteenth Street, N. W. tions. Mr. MacTavish has been
Local Versus Federal Debt
for gU capital improvements out tional lands shows that the public Officers are
Philip Lustine, Presi¬
Perhaps the growth in state and 0f current revenues.
At times it will SUpp0rt borrowings where the
dent; David E. Snyder, Treasurer; in charge of corporate reorganiza¬
local debt may best be appi eciated wpj in facf
desirable to finance
public interest is clearly demon- Philip Rosenfeld, Vice-President; tion work during the past few
by comparing it with the Federal capital programs out of a com- strated.
I
view
this
departure and J. Gerald Lustine, Secretary.
years
as
loan review officer of
debt.
In
1946
outstanding debt bination of current revenues and from current policy of pay-asof
stste
cind
local governrnent borrowings, as indeed wg did you-go as an acceptance of the Form Mutual Funds Sales the bank. From 1947 until 1956
larly

under conditions here in

state.

value

believe

one-twentieth of the Federal

was

debt.

On June 30,

slightly

over

indicate
levels

1970

The

debt

may

debt.

rise

rapid

for funds

demand

the

the part of state

from 1954-1958—when 50%

capital

and

were

programs

Estimates from current
of current by bo„ds.

which time
be equal to

the Federal

half

one-fifth.

doubling

municipal

1959 it rose to

and

revenues

our

50%

chief fiscal
officer, I am responsible for borrowings by the state. In fulfilling
this
responsibility,
I
naturally
As

you

seek

know

borrow

costs

when

bond

financed beginning

are

eram

financing

building

higher

POMPANO BEACH,

fa-

Vice

Nov'517pfa1|othropies' New

other

seekers of long-term

1952

than

less

the
in

Since I have taken

office

have

This is under

occasions

four

public borrowers declined to accept bids on a sale
at least 100 per week. 0f Tnruway bonds and re-offered

reasons

are

sure

0f state issues.

6,000

per year, or

funds.

has never been

there

all

aware

this rapid growth

for

long-term municipal borrowing,

bonds

those

instances

achieve

later

have

time.

been

and better state

demand for more

and local services.

The

principal
funds

which

purposes

are

borrowed

state institutions.

One

has

are

The projections

by my staff indicate a reduction in the relative share of
made

borrowing for
elementary
and
secondary school purposes in the
years to come with an increase
in
borrowing for water, sewage

and higher education,
may also be a further inin the use of revenue bonds

years.

anticipate

more,

rather than

less, borrowing in the future on
the
part of municipalities.
The
reasons are easy to discern. First,
there
are
the
traditional, legal
and economic limitations on the
local tax base,

tax
rise

tures.

buy,

come

the

reasons

about is

our

why

Marilyn

Mr.

MacTavish

went

J. Peat,

Marwick,

Mitchell

public accountants.

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

or as

(125,000 Shares)

market. We
recognize the existence of various
types of movements in the money
market.
First, the existence of a
long-term upward trend in interest rates—a situation over which
we

have

money

control.

145,000 Shares
.('■

,!-)

so
as

especially the propthat revenues will

rapidly as expendiit
is
generally

Second,

•

mi_'i

Process

:'-;u

.>'<•

Lithographers, Inc.
Common Stock
($.10 Par Value)

Second, the

shift in interest rates in shorter
periods
of time
which reflect
business cycles and economic conditions. These shifts are difficult
,

Price

per

to adjust to.

Third, the
existence of two
short-term movements in the municipal bond market. These are
the short cycles and seasonal patterns. We watch these movements
even
are

in
not

periods when we
actively in the market

that when

a more

Copies of the Prospectus may be obtained from only such of the
undersigned as may legally offer these securities in this State.

UNDERWRITERS

First Broad Street Corp.

Russell & Saxe, Inc.

those

we are we may

•

Street & Company, Inc.
*

V. S. Wickett & Company, Inc.

efficient job of borrowing,

The short cycles take place
within the broader framework of

November 30, I960

the

Chase National Bank in 1928 from

or as a

this

continuous

lending

bank's nation-wide

Secondary Offering (20,000 Shares)

However, if we are
There
sure that a tight money cycle is
crease
coming to an end, then we postrather
than
general obligations, pone long-term borrowing or bora
phenomenon which has been r0w short-term until the actual
characteristic of the past seven to shift occurs.
treatment,

not

officer in the

circumstances to be construed
to

experience

securities district organization.

Patrick Gi-

Mary Giasullo,

and

earlier

able to

better price for a total

for study of the

education, highways, housing and
water
and sewer
facilities, and

erty

President,

population in- savings of over $27 million in in¬
urbanization, and public terest charges,

creases,

President;

are

Buchanan, Secretary-Treasurer.

The

New Issue

His

included many years as a

include

These

eight

offer

Officers

asullo,

the

talk by Col. Levitt before

business.

governments has also re- at a minimum and when funds Factors and Finance Division of the Feda strong competition for
are in greater supply.
I have been Voracity
funds not only between municipal Very
fortunate in
guaging the
'
borrowers - themselves
but with market and in timing of the sale
Since

conduct

Highway

pities
*From

North Federal

with offices at 621

and

problem,
education

Fla.—Mutual
Sales, Inc., has been formed

Funds

the

local

sulted in

Vice-President and Comp¬

troller.

bond financing for high-

commuter

was

(Special to The Financial Chronicle)

pro-

constructC mfeting

railroad

the

and

expanded

I'.!*-

Flomenhaft, Seidler & Co., Inc.

Co.,

The Commercial and Financial Chronicle

(2184)

, s

United

Some Thoughts on

Public
Policy and Dollar Problem
Professor
of Economics, Harvard University, Cambridge, Mass.

By Dr. John Kenneth Galbraith*, Paul M. Warburg

States

partially offset
claims
on
other

are

long-term

countries.

And

this

year

our

been rather

talled $1.5

last year

than

better

—in recent months

they have to¬

to $1.7 billion

pared with

billion

years. But the deficit
international accounts will

nationally
known for writing best-sellers, strongly disclaims press reports of
being an adviser to President-elect Kennedy. Here he addresses him¬
self to such solutions of our dollar

problem as:

control

and

responsibility

(1) creating over-

opposes

monetary

policy;

months,

For

able

our

both

for¬

our

and

from

stems

economic

and

its

some

and

more
John K. Galbraith
'

than

sive
have

Surely

consequences.

is unnecessary for me to
I

imagined. I bwould like
explore these consequences or
yet

possible
this

fellow

academician.

months I have
to

individual

that

say

and

recent

myself referred

seen

adviser to im¬
has been
my vanity.
Perhaps the only thing that has
impaired my feeling of pride has
been the knowledge that my posi¬
quite often

as an

portant people.
This
endlessly nourishing to

tion

has

been

pointment
that

state

the

will

one

largely

badly

I speak

only

end

the

1952

foreign
the

gold

lar

come

can

less

totalled

gold stock less the liquid dol¬
holdings of foreigners was
$3.3 billions.
This was a

net

deterioration

and
one

stock,

holdings,

dollar

two

the

over

half years of

The

seven

$14.87 billions.1

these

respects

modern

the

history

dollar

unites

what

considered

di¬

differing

substantially
on

our

ef¬

dollar outlays abroad.

policy on military aid.
policy on economic
assistance; and our ability to ne¬
gotiate access to overseas mar¬
kets.
But this is not a problem
that begins or ends at the water's
edge. No line divides foreign and
our

So also is

our

figures

our

American individuals and firms in

has

involved.

measure

lems

prob¬
encounter in looking to¬

solution.

ward

Our habit in these

matters, aca¬

demic

as
well as political, is to
departmentalize things. Our mili¬
tary stance is a military matter

the

for

military

civilian

specialist.

intervenes

with

The
well-

developed

sense of his own peril
knowledge that he may

the

well be

accused, in his ignorance,
jeopardizing national security.

Domestic

derived from

foreign

of rare strength

currency

This

countries.

claims

that the short-term

often uncomfort¬

means
on

the

these

of
the

debentures

and

the

undersigned, under terms
advertisement

This

common

appears

stock

have

agreement
a

matter

the parties.

between
of

purchased

been

only.

record

economic

something

ens

the

December

ISSUE

cies to insure

1960

between

suffering

purchase
needs

of
for

additional
further

certain

funds

conditions

has

convertible

develop
by

committed

and

Rawco

$300,000.00

who
to

debentures
upon

those

and

its

understand

This

York.

that, although McKinley
ters difficulties at the

Federal

Licensee

727

South

Under

the

Small Business

Central Expressway,

Investment

Act

Richardson, Texas

of 1958

encoun¬

ballot box

rela¬

pare

military planning has

the unions.

Those

that

cannot

have,

told

foreign
cases,
not

many

afford

have

afford

much

any¬

Many have long been at¬

by the idea of using for¬

eign policy
in

who

needed

change—or

of smuggling

as a way

desired

reaction.

;

domestic

What

can¬

culation

Yale

indebted
to

for

Professor

University.

the

specific

Robert

cal¬

Triffin

so for much of the indus¬
plant of western Europe is

and

modern.

that

Russia.

may

add, is

the

balance

And so,

one

Here

Japan.
of

payments problem leads on to
encouragement to plant moderni¬
zation and technological advance
and to tax policy.
I would hope,
incidentally, that it might be pos¬

sible

have

such

serious discussion

without

encouragement

raft

stimulating

imaginative

suggestions

and

new

for

tax avoidance.

pure

■

;

dollar

Our

position extends to
policy for, while some
industry is running into

farm

our

competitive difficulty in foreign
markets, our leadership in agri¬
cultural efficiency is still unchal¬
lenged.
We ought
this
advantage
by

sacrifice

not

system

price supports that prices us out
of

There

markets.

overseas

are

of supporting

farm income
example the techniques em¬

ways

—for

for sugar and wool—

ployed

now

which

longer

not

matter.

choice

The

so.

purely

domestic

V';' M'-'.

dollar

suitable rate of growth—the bal¬
of

ance

payments will automati¬
care of itself. Economic

cally take
health

home

health

economic

means

abroad.

Unfortunately

countries,
enjoying
employment, can have bal¬
of payments problems. And

Finally,

need

one

problem.

hardly
As

say.

consid¬

erable holder of what amounts to
demand

deposits, we must behave
designed to inspire
of depositors. This
does not mean, as I imagine some
may have hoped, that our interest
rates must always be higher than
those
of
any
other country.
It
in

manner

the confidence

does

require

interest

that
in

rates

cert with

our

move

reasonable

others, and

con¬

a measure

prosperous

common

full

policy must now be a prime goal
of the major
industrial powers.

ance

they

must meet, as must we,
heavy burden of military obli¬

gations

abroad, it is likely that
they will. We are faced not with
a problem in attitude but in arith¬
metic. It is not one that is changed
by a change in Administration. I
remember on the evening of the
attack

cation

William

have

will

there

Solution

suggested

require

that

solution

unification of

expand

that
in

our

strategy that

our

exports and to

our

products

are

markets.

own

and must look to

the

see

competitive
We

our

cannot

costs.

competitive ability of
company

things,

low-cost

supply

in¬

depends, among

efficient and

and steel products,
losing out in third
markets, and even here at home.
And high steel prices have weak¬
ened our position on other prod¬

sult,

steel

have been

ucts—as

studies

recent

Economic

Joint

shown.

the

Committee

dollar

the
have

problem

closely involved with price and
wage making in the steel indus¬
try.
I would hope, incidentally,
that this might be a consideration
in
any
steel price change that
might now be in the making.
And

are
we

surely few matters on
more
to gain by
co-operation.
Need¬

have

intelligent
less

talk

about

we must exclude all
devaluation.
It is not.

say,

survives

fact, a remedy that
serious thought.

any

Limit

Would

Outlays to

Balance

Of Payments Consideration

Next, we cannot escape
the
problem presented by our large
overseas outlays.
Were it not for
these our position would be very
strong. Our deployment of mili¬
tary force has long been subject
to
the budget—to
what we are
prepared to spend for national se¬
curity. In the future it cannot be

entirely independent of balanceof
payment
considerations.
I
should like to be clear about this;
I am not urging withdrawal from
Europe or Korea. But I am say¬
ing that where once we sought
the
best
deployment
for
the

generally the con¬
stant upward thrust of our indus¬
more

prices is

longer a purely
domestic issue.
The country that
leads the inflation parade, as we
no

money,

seek

in the future we will have
the best deployment for

the dollars.

Thus

steel. In re¬
cent years our steel prices have
become uncompetitive.
As a re¬

There

It is central to
we

eco¬

diplomatic and military
Let me suggest, partly by
of example, what will be re¬

management in monetary

which

dedi¬

Knudsen

shortage of copper."

Suggests
I

national

"Tomorrow

amidst

Harbor

hearing

observe:
still

Pearl

reference

much

trial
1 I

trial

the

But, though I count myself a
liberal, fairness requires me to
guess that some will also hold that
if the domestic economy is suit¬
ably flourishing—if we have high
and improving employment and a

ing imports; that will only bring
retaliatory action against the ex¬
ports we must have. But we can

Ito

espe¬

monetary policy is related to

The

design

our

not.

first

in¬

our

sity.

who

position.

might still be smuggled in un¬
der the guise of financial neces¬

accomplish the latter by restrict¬

tracted

feel

factor

now

new

other

thing.

Electro-Science Investors, Inc.

who

those

will not

program

unattractive

foreign policy

secret

wanted

Inc.

the unions do¬

-wages

dustrial

aid

fulfillment

Instruments,

well.

low and prices com¬
petitive— and high
returns
to
capital will cause holders of liq¬
uid assets everywhere to have the
warmest possible thoughts of New
cile,

Indeed, not only is it our habit
compartmentalize such debate
but it is badly poisoned by the
suspicion, or the fact, or ulterior
motive.
Some past civilian inter¬

when

will

all

semi-depression here

modern

for

and

quired.

policy and the nature of
price-making.
In re¬
cent times foreign aid has devel¬
oped its own mystique; there are

ting outlays, and, hopefully, taxes.
The threat of foreign competition
is the oldest device for flogging
Inc.,

unions

at home will keep

and

been for the plain purpose of cut¬

Investors,

labor

Then

bone.

way

vention

Electro-Science

poorer

buyer's market to business and
us
pare our economic aid tc

down?

and Common Stock

the

ment
a

nomic,
policy.

some

5% Convertible Debentures

their

citizens
So let us raise interest rates, cut
back needed public spending, ap¬
ply the pressures of unemploy¬

is in the professional prov¬
ince of the specialist on domestic

automatically to its defense;
suggestions from others are auto¬
matically suspect. Is there not

RAWCO INSTRUMENTS, INC.

balance.

return to

those who inflict the maximum of

policy is
the
unions,

rise

$139,000.00

Some

Providence, it will be held, awards
its prizes in economic affairs to

Or it

those

ahead.

months

cially
interesting
motive in

some

industrial

ternational

will say that we need only adopt
the most conservative of all poli¬

will

tions
NEW

Conservative

of ulterior
proposals to deal with the dollar
problem as the discussion sharp¬

the corporations and the Congress.

wage
All

unlearned.

not

are

Ultra

We shall have

fiscal

suffi¬

number of important
prices
in
these
last
years, keeps itself at a
constant
competitive
disadvantage.
For
the future, we must make sure
that we lag not lead. Again, our
past competitive position has de¬
pended on a high rate of techno¬
logical innovation and. advance.
in

have

This

economic issues—on monetary and

been

prob¬

our

otherwise

Solution

This raises the first of the

most

that

one

separate aspects of our
policy. Military strategy
is obviously involved, for differ¬
ent deployments of our forces will

balance, as noted, are long-term
capital exports — investments by

For

national

terms

dollar.

Chides

The state of

and

verse

fects

though

not

the

let

degree

hitherto

have

and

the

money.

solution

remarkable

exaggerate the problem.
Among
the items contributing to the im¬

ability to back it,

our

Our Failure to See the Whole

changed
Perhaps

relation to the world.
the most familiar is in
of the strength or scarcity

which

the

At the

minus

points at which
grips with our

are many

needed, with

$11.5 billions; by June of this year

ap¬

fessor.
There

cumu¬

lative result is formidable.

pro¬

The

series of such deficits.

I trust
when I

press.

feel

best

were

purchase of foreign
products was rising moderately.
Our payments for foreign serv¬
ices, which include those to our
armed forces abroad, have been domestic policy.
Our ability to
very high and rising.
Last year sell abroad, or to meet foreigft
nothing was left over to cover competition hereioat; home, .'. de¬
government grants for military pends on our ability tolfcorftrol
and economic
aid of some $2.5 inflation; and on the stability in
billions
or
private
and
public underlying wages and prices, and
capital exports of $2.8 billions. on our rate of technological ad¬
After
subtracting
some
other vance, and even on the nature of
items accruing in our favor, we our farm policy.
Indeed, there is
had a net deficit of $3.8 billions. scarcely
an
aspect of our eco¬
This was the most recent in a long nomic policy which is not in some

these

comprehen¬

than

have

Our

constant.

deeper

are

services

and

ucts

implications; I
believe

indebtedness

States.

things have
changed dramatically. Until the
end of last year our sales of prod¬

with

deal

United

In the last 10 years

would

the

the need to

find them to service

rest

world.

the

accentuated

been

otherwise,
the

war—in find¬
them to sell.
Since World
I the shortage of dollars has

War

relations,

with

has

the interruptions of

ing

withdrawn

policy depend. Our for¬
eign policy has always depended
less on the skill of our diplomats

recurrent difficulty in sell¬

they

were

tion and

persistently

partly withdrawn could cause se¬
complications here at home
and gravely undermine our abil¬
ity 1 to
sustain
our
payments
abroad.
On our ability to make
such payments our foreign posi¬

ing foreign goods here, or—given

and do¬
mestic policy.
eign

our

continue.

cannot

rious

high demand for American goods
and
services
in other countries

penetrating effect on

will have

result

the

they

which,

scarcity

This

scarcity.

been

has been in the making
economic situation which

change
in

now,

So,

were

merits be¬

ciently complex, we must addi¬
tionally apply a saliya test for
self-interest.
Fortunately,
as
a
nation,
this is an
exercise
in

again

do so they would
top-heavy volume of
claims against our economy—one

devaluation;

years

even

deficits

establish

chides

own

because

examples

These

Were

payment

its

necessary

Russians.
lem

our

ed in.

favors common management in
ultra-conservatives and liberals who,
though they favor opposite policies, believe their proposals would
automatically take care of the payments-balance problem. He ob¬
serves
no simple
and direct correlation between foreign aid and
economic progress, and hopes American manufacturers located in
Western Europe will find ECM trade protection unattractively small.
Galbraith

comes

especially when in¬
capital exports are count¬

creased

over

balance

outlays

overseas

not be sold

be very large,

foreign outlays; (2) tying
and not to budgetary
considerations; and (3) improving our cost structure with particular
reference to price of and wage making in the steel industry.
Dr.
all

com¬

monthly average of
in each of the last

two

Economist, who before the recent political campaign was

ex¬

goods and services have

ports of

$1.36

r„.

•

.Thursday, December 1, 1960

would

imagine also that we
give ever closer attention to
security we buy with the

must
the

dollars.

scarce

large

and

better

been

that

date

not

were

ful
to

scarce

when

and
make

nomic

ican

but all too
it

cities
dollars

when

was

plenti¬

good

sense

them

calculation

also

diplomacy.

unavoidable.

Since the

trading

Common

lar,

has

our

Amer¬

Europe has
sympathy on
of larger
and

much

development

The

war

toward

with

stronger

unavoidable

policy

looked
the

Is it pos¬

these

widely available?
again the intrusion of eco¬

Once

time

than

situation

some

the

and

commissaries

servant

Scarsdale, New York.

sible

countries

world,
suburban
reproduced in
agreeable cities with

has

well-stocked
far

the

around

America

been

communities.

Market, in particu¬
almost

much

Volume 192

goal

Number 6008

of our policy as
Germany.- I, for

and

think

that

France

would

one,

should

remain.

But

The Commercial and Financial Chronicle

Israel
• are

develops because its people
widely
literate
and

much better educated than others

surely we are right in hoping
that this and the Free Trade Area

society exists for

will

regards

their contribution.

trade

ease

without
for

between members

making it

unification

with

difficult

non-members.

low

have

can

tariffs

and

have unification with high
the first is now not

we. can

tariffs

and

only important but imperative for
will

us.

for

mark

success

diplomacy if American
manufacturers, who have set up
shop in the Common Market, find
their
ultim ate ' tariff*
advantage
unattractively small.
our

not

making a complete
policies which bear
upon the dollar
problem.
I am
seeking to show how pervasive,
am

list

the

months

influence.

ahead, will be its

And

to smaller details.

affect

could

one

toward

visas

for foreigners for increased

ist

spending here is

offset

for

ist outlays
affected
the

abroad.

Soviets.

which
such

once

possible

one

trade

Exports

with

Russia,

examined

were

meticulous

tour¬

with

lest

care

some

damaging gadget might end

Bolshevist

critic

of the

some

government be led to

softness
on
$22.4 millions

pect
were

eight
is

hands

months

sus¬

communism,
in

this

the

first

That

year.

lions in all of 1959.

Aid

Sacrosanct

One

item

our

balance of payments which is cer¬
tain to come in for special scru¬

tiny
is

foreign

not

great

with

aggregates

aid.

the

among

which

dealing, it is rather small. But,

are

there

economic

item;

large

sl\

old

view

that

the

budget of the United States
ernment

saving

gov¬
best be balanced by

can

money

the

Bureau

Labor

Statistics, so economic aid
always present itself to some

will

the

outstanding candidate for
in
overseas
expendi¬

economy

tures.

might

hope that this tendency
be resisted.
This aid re¬

mains

our

post-war

maybe

initiative
policy.
It

greatest

foreign

fundamental for

also

esteem,

our

for

has

nothing
world

could

our

It
But

the

policy

sustain

be.

damage

shared

will

and
so

around

sought

that

military

at the expense of efforts to

power

aid

been

in
and

self-esteem.

unquestionably should
it

people

poor

the

poor

lands.
Yet

would

hope that liberals,
including liberal educators, would
consider

economic

aid

present form to be wholly

its

sacro¬

sanct.
For, as with troop deploy¬
ment, the techniques of farm price
support or our policy on tourists'

visas, we cannot be sorry for any¬
thing that requires us to take a
look.

second

have

been

ourselves

too

there

fact

derly

lead

or¬

social

develop¬

ment.

who

fruits—it

would

tune.

need

misfor¬

ture, in light of the whole process

Governments raise the necessary D. marks by
long-term loans to be issued in Western Germany.

LONDON, England
of

the

attempt

The failure

—

Mr.

Anderson

and Mr. Dillon to persuade Dr.
economic and social change—
Adenauer
to
contribute towards
process, incidentally, which will
the costs of the U. S. Army in
not be quite the same in
any two |
West Germany did not come as a
countries. There is a good chance
a

last years—and

I dc

not confine myself by these words
to the Republican years—we have

been buying the
difficult thought.

right

avoid

surprise in London.

cial circles have
is

Finally,
if

solution
and

is tempted to

one

the

dollar

won¬

effective

and

problem—

settle for

can

nothing less
—won't require some new public
arrangements. At the present time
a
great many different agencies
of government are spending dol¬
lars

abroad.

effect

Even

those

have

These

earn.

the

induce
to

pay

upkeep

without
would

which
be

British

the

German

fair share
Allied Forces

Germany

Cuba; things
improved
there by more economic aid. They
would
have
been
helped by a
strong and unqualified stand in
support of representative govern¬
ment, individual liberty, and eco¬
nomic and social justice. Israel is
economically one of the most pro¬
gressive countries in the world,
but not because of its great capi¬
tal resources.
Favored though it

the

sterling

relief

was

not

have

been

its

supporters

and friends,

its situation is far less good
that

Mr.

obtained

difficulty

from

Bonn

was

ungenerous, and now that it
the dollar that needs strength¬

ening the response of Bonn
to be equally tight-fisted.

seems

Of course lip-service is being
paid in Bonn to the need for the

free world

expenditures

and

receipts, now
outlays and
magnitudes we must

are

Until 30 years ago

sponsibility for Federal
diffused

was

executive

the

re¬

expendi¬
the

among

agencies.

Each

dealt

the
U.

the

comes

ing authority
tures

day

must

and

effect.

have

tative

not

think^if
must

too,

used

with

must,

single

view

cer¬

authori¬

our
prospective
outlays—one that

minimum

the

course

prudence and caution.

toward correction have been slow,
I do not wish to minimize the im¬

portance of those
or

are

that have been

under way. But cer¬

large task remains.

think

not

task

action

their

I do

that

ef¬

dollar

free

world

But

when

to that end—that

taxpayer's

Governments
D.

necessary

long-term

West

loans

who

the

with

deal

problem

how

retrospectively

as possible,
that, not only
would the flow of gold from New

There
West

are

three ways

in which
effectively

Germany could
in deflecting the drain of
is responsible for the

assist

without

gold from New York

imports
a

and

adverse

in¬

thereby

trade

Nor

the

German

the

;.is

Germany

the

gold

European

prepared

to
produce

influx to

full natural effect

the price

Vlevel,

even though it would solve
problem by reducing or elimi¬
nating the embarrassing export
surplus. Fear of inflation is pre¬
e

sented

the

explanation of this

unwillingness to play the
the Bretton

game of

Woods

gold
rules

of the

variety of the
according to the

standard

Remembering

game.

Germany's experience in advanced
inflation

that

explanation sounds

price level.

ground that it would
taxation.
of

sence

Allied

American

Forces

Germany
the

mean higher
then, if in the ab¬

But

were

and

other

German

faced

soil,
with

urgent necessity to strengthen
national
defenses, the costs

involved
sitate

would

inevitably

neces¬

higher taxation.

The

arguments for

could

definitely,

and

against

continued

there

and

can

in¬

doubt that Mr. Khrushchev would

sharp

enjoy
the
disagreement

Western

him

gold

Allies.

that

together

substantial proportion of the bur¬

spectacle

satisfaction,
should

between

Instead

the

imports

The German Government could

have

valid

formula.
issued
ment

objection

The

loans

Germany.

troops
not

prepared to take action in either
direction.

The

the

address

Dr. Galbraith before
meeting of the American As¬

annual
cf

versities,

Land-Grant

Washington,

and

State

C.,

Uni¬

Nov.

16,

would

without

having to contribute to¬
upkeep.
All
that
Germany would lose would be the

wards

their

benefit

the

represented

invisible

by the

the

German

testations
in

the

its

effort

dollar

are

valid

desire

Union

Dillon,

—

Admittedly,

its

hands

Philadelphia

National

Building,

announced

Stanton

ciated

has

respect of imports

free.

West

are no

effort

Bonn,

could

them

its

oil-rich

than

neighbors.

the

part
of the Common Market, and its
external tariff is determined by
now

the

would
On

taxpayer.

service

the

additional

other

these

NEW

securities.

in Philadelphia.

burden.

major

relief

the U. S. balance of payments. Its
effect would enable the Adminis¬

need for defending the dollar with

hard

money

sulting

measures.

business

The re¬
would

revival

than

compensate the U. S.
taxpayer for the additional mod¬
more

erate burden.

And the restoration

harmonious

Allied

West

would

relations

please everybody

the
on

this side of the Iron Curtain.

find

formula I

recommend

Washington,

London

and

R. W. Lord With

Harris, Upham

From

now

the

the costs of Allied

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

The

ISSUE

$1,500,000

STORES

DAVEGA

CORPORATION

6V2% Convertible Subordinated Debentures
Due

securities

August 1, 1975

offer will

expire

subscribed

not

subject

Company

are

stockholders of the
on

will

preemptive rights of existing
purchase such securities; such

December 14, 1960.
then

offered

Such of these shares
the

public

large.

Subscription Price $100
Copies of the Prospectus

may be obtained from the Undersigned in
Undersigned may legally offer these shares
compliance with the securities laws of such State.

any

Amos Treat & Co., Inc.

Wm. Stix Wasserman & Co., Inc.
'

Corporate Department of their

quarters

the

loans

hand, there would

immediate

Indeed

proposed

This announcement is neither

Pennsylvania Division; with head¬

afford

continue indefinitely.
It is true, the application of my
formula would bring no relief to

asso¬

Manager

affairs,

ill

the other Allied capitals for care¬
consideration:

longer

Germany is

Bank

Moyer has become

with

the
raise

objection to bringing to

the

Co.

that

assist

CHICAGO, 111.—Richard W. Lord
financing of has become associated with Har¬
troops in Ger¬ ris, Upham & Co., 135 South La
many must be arranged in such Salle St.
He was formerly Chi¬
a
way as to prevent it from pro¬ cago manager for J. R. Williston
the joint policy of the Six. More¬ ducing invisible exports for the & Beane, and prior thereto was
over, the increase of trade within benefit of Germany and producing with Bache & Co.

Eastman

Securities

could

end the present state of

which

pro¬

strengthen

sincere

State in which the

Pa.

ex¬

Government's

ful

Heads Phila. Dept.
PHILADELPHIA,

exports

mark

penditure of the U. S. Forces.

1960.

Of Eastman Dillon

German

this

not cost anything to
taxpayer who would
continue to enjoy the benefit of
being protected by U. S. Forces

the

giving

put their heads

following

should

The Federal Government is

These
♦An

would

terms acceptable to the
investor.
The
arrange¬

solution.

early disaster. Perhaps we can
only out of a sense of despair.
may hope that this is not the
'

recent

return to the U. S.

tration to adopt a softer monetary
policy, since there would be less

Khrushchev Would Gain

statesmen

(3) By relieving the U. S. of

excess

years would

The unwillingness to contribute
towards the upkeep of the Ameri¬
can
Forces is
explained on the

greatly

balance.

(2) By allowing the influx of
gold to produce its natural effect
on

upsetting

support

By deliberate action to

create

German

Row

Frankfort.

(1)

rate,

any

Common Market.

funds'that
flow

detrimental,

run

means

exports
to Germany.
could be done about it

Nothing

lunar

case.

far

space

mean

probes or the recovery of
vehicles find in their dif¬
ficult path
a
certain challenge
So it might be here. Perhaps we
will get no action until we have
an
adequately dramatic portrayal

Germany.

yond

Perhaps we might do better than
that.
I would gather that those

marks

be¬

doing. And it would be a
sign of maturity were we to ap¬
proach it with a certain calm

expense,
would be

solution

Allied

the

not

costs

This principle should be
applied

American

its

den of the cost of American

The problem I have been dis¬
cussing is an important one.
It
has provoked a good deal of dis¬
cussion
among
able economists
and
responsible
public
leaders.
And while I frankly think steps

taken

the

admitted.

crease

it is

and

the

another story.

maxi¬

weigh priorities
among the latter. This would seem
cause

and

revenues

the

at least in anal¬
about our foreign

These,

husbanded

tain,

the

terms

resources.

con¬

similar,

ogous

mum

Director

Perhaps
when

over-all

these expendi¬

over

the

Budget.
distant
not

and

only by concentrat¬

together, and
assisting the

strengthen

interest

Responsibility
won

stand

Administration

fort

readily

was

importance

independently with the Congress.
trol

the

issued

our

genuine enough.

not less than domestic

mercy

the * short

a\ its

Khrushchev's motorized divisions.
When

offi¬

West

the Six is bound to be

long realized that

get blood out of

than to

Government

determined

easier

stone
of

der

German

the alternative

those

York to Frankfort be checked
but,
as
a
result of the issue of U. S.
loans in Germany, some of the

that in these

knows

Germany

cover

that the Allied

'its

act, in the fu¬

which would

rea¬

the

problem arising from German invisible exports created
by the cost of troops stationed there can be solved. He suggests

advance

have

The British columnist believes

Since

prepared

means

the nub of the

of eco¬
the hope¬

product of many ingre¬
Money was not the miss¬

ingredient

would

economic

expect

gold drain problem.

edu¬

mainspring
or

Allies.

raise

Dr. Einzig is not too
surprised at Western Germany's reply
Treasury Secretary Anderson's proposal for alleviating part of

of
of

dollars—of

our

people

son

think
course

the

invisible imports to the detriment
of the
United States and other

for

By Paul Einzig

dients.

ing

lessness

development

sociation

ment

nomic

there

develop¬

and

That confi¬

progressive

Economic

the
that

relation

some

forced

cation

act

that economic aid,

ample, will

and

problems

husbanding

certainly

And

assurance

however

and

relationship.
no

years

between
pecuniary
economic prog¬

expenditure
ress.

recent

ready to persuade
simple and direct

relationship

Were

these

tainly

the

not

the

will

I would

tures

conclude with two final

that
and

unfortunately rather rare
underdeveloped world.

watch.

Does Not Consider Foreign

Let

them

know
them

taxes,

compared with $7.4 mil¬

observations.

they

Ending Impasse With Bonn
On Paying U. S. Army Costs

dence is

It has already

view

our

tour¬

considerable

our

Perhaps it will

attitudes

our

because

and

(2185)

November 28,

1960

A. D. Gilhart &

Bruno-Lenchner, Inc..

•

Co., Inc..

«vrwsw

»wr^w^ysje^wr^ '-i

WW W ^.f^i.1.

wr4WP>r

.'ilf'.Hi VA!di» * ¥ tfyyt?0'-1tWNriVf^q^^u^'WfcMw^itofcnt^^^iw^ftyiyTWWtf^

The Commercial and Financial Chronicle

(21C6)

Government

-pv

•

■

i -

•

welfare

of the consumers,

Role m bolvmg

Our Economic Problems

University

economic

growth

which

pace

how

duction

of "easy
money" for ignoring the damaging effects of persistent inflation on
the efficiency of management, labor and investment spending.
He
provides data showing that the present administration's spending in
the public service sector equals that of Truman's last year of office,
and questions the need for raising expenditures and taxes.
Dr.
Jacoby would tike to see structural reforms in our taxes and larger
Federal spending in basic research and education. As for the first
problem, tie proposes that the President-elect hold a conference on
unemployment as soon as he takes office.

wish

government in the Sixties, we must first
of all identifv the economic goals

and

the

Congress, to bring about a better
co-ordination of existing powers,
But' the

free

people

can

postwar

which it is the

been

has

era

recessions.

serious

been marked

waste

of billions

nance

the production

entry

and

labpr

municipalities upon
jobs1 and upon the

into

people; (This is part
problem of monopoly pow¬

of the

er.)

Another

search to

pro¬

tion

the Soviet Union does,

restrictions

movement of

to increase

approaches to this
is to re¬

One approach

undue

unions

requirement

re¬

develop better informa¬

about

demands

various

skills

and

supplies

local

labor

farm

of unneeded

products,, and to increase the

productivity of many people, now
in agriculture; As the Committee
Economic

for

other

Development

analysts

objective

and

now

agree,
a
rational farm program
requires the scheduled removal
over a period of several years of
all price supports, all acreage al¬
lotments, and all marketing con¬

trols.
tion

should

reloca¬

embrace

and

retraining grants to assist submarginal farmers to enter

•

youths', and markets,- and wide dissemination more
promising
industries.
It:.
older people work, or by working:;
of this knowledge to guide people' should assure all farmers a mini-''
longer hours. Real economic prog-* in:
retraining and relocation. -(For mum income under adverse eco- J
ress
occurs * when -' output', rises example, idle auto workers in De¬ nomic circumstances. Jt must also
without additional work. In short,
troit should learn promptly of the embrace programs to dispose of
efficiency is the heart of economic>
strong demand for auto mechanics existing surpluses, but without the ;
progress. Gains in efficiency have
in, Los
Angeles.)
Still
another "dumping" that has. strained ,U. S.
been about two and one-half times
need is loans or grants to finance relations with other countries that
as
important as increases in the the
retraining of displaced work¬ depend on farm exports for'their ?
number of-man-hours worked in
A programmed return to
ers,
or; their movement to new living.
raising American production in areas where
job opportunities ex¬ free-market pricing over a period',
the past. It follows that increasof four or five. years would re¬
ist.
Pension
and
benefit plans
ingly efficient use of all our work; should, be revised to eliminate move a source of friction in our:
force is the key to rapid progress penalties on employees who move international relations. - It would
in the future. Increasing efficien- to new jobs. A vast increase must' produce a more productive use ofr
cy should be the central theme of occur ;, in
vocational
education. manpowerj stimulate growth, and
a Federal strategy for rapid ecoArea development programs play diminish inflationary pressure.
nomic progress in the 1960s.
' apart/ By all these- and other
Fourth, Monetary and Fiscal
v
;
V
H <*•; '':;means,, we, can banish
the fear
women,

Committee

Economic

the Ameri¬

President

Joint

Federal

the

visers

the

understand

role

proper

easy

making

much

It is

input.

governmental

specific

require

truer

progress

output is
produced for each hour of labor

Dr. Jacoby accuses the advocates

of action.

economic

productiv¬
ity, in output-per-man-hour. This

government spending, is but one of six major problems affecting

programs

civilization.
of

measure

Coping w:th structural unemployment, not solvable by easy money
our

great boons of an ad-" duce

of dollars to fi¬

govern¬

means

problem?

the rate of increase in

shows

the

vancing

Calif.,

Angeles,

Los

California,

Member of the Council of Economic Advisers

and Former

new

Thursday, December 1; 1960

...

ignores most improvements ' economy to adjust to change.
the duality of living, and all
What are the

one

Admin stration,

ing

"t"^KftaKy,"l**

leadership in design¬
of enabling our

ment to take

increases in leisure time, which is

Graduate School of Business

Dr. Neil H. Jacoby*, Dean,

is the role of the Federal

which

ismss^.

GNP

•TVWT,,*,jM^yv<ruw^*i»--r^

has

by large defense ex-

penditures and by sporadic infla-

purpose

tions rather

government to

help

of demand.

attain.

The

the United

this discussion
it

has

that

about

the

Neil

Dr.

economic poli¬
cies
and
actions

Federal

our

■

attain

five

namelvna
e y.

to
w

freedom;

This

different

equality

level

while

maintaining a high
employment; to stabilize

has

come

have

levels

six

S. economy

front

a primary
-h

cumjjeLiiiuii

Fast

the "cold war"

and

West

Rpoentlv

Detw_ee.n *^st ana west. Recently,

our

:tn

Federal government has acted

a.iffment

the

J? augment

First,

speed

at the present

first

changes

prnwfh

the

the growth of the

u- s- economy. It established the

reduction

the

adjustments.

acts

the

One of the
President

rising * the

labor,, government

universities

develop

and

solu¬

levels

and

foster

recognition.

What lessons

eco-'

The preamble to the

can

be learn from

this brief review? Clearly, it revCals how our dominant economic

order

secure,

other

among

things, "the blessings of liberty."
The economic goal of equalizing
opportunity and reducing inequality was the next to emerge. The

dramatic

ated

extremes

sonal incomes and wealth.

desire to reduce

panding

per-

Public

inequality by

personal

ex-

opportunities

man-

power more

our

eitendtog-w&DetWin-lbV

Third

■^

imra, extending cqmpetitionpy

laws,

and

health

factory

regulations.

safety

applying

eluding

progressive

and

Another

tax in

personal

income

1913, and progressive death

taX6S-

The goal of

moderating business

employment
disaster

emerged
the

of the 1930s

Great

with

the

Depression

It dominated Ameri-

can

economic

the

passage

policy right up to
of the Employment

Act of 1946.
The nation achieved
full emplovment with the
coming

ing

fear

ployment

chronic

mass

continued

unem-

dominate

t^e thinking of Americans. It led
Congress to enact the Employment
Act

labor

u n 1 o n s.

and

Second, Monopoly Power

1946,

government to

which
use

committed

all of its pow-

htehateverieSofremuiovmenntta;'thS
level of employment.
The
liigh

in-

CO-

intervene

the Council

the

economy.

lpac'lineryi "oof Economic Ad-

These

are

called
the
"easy^
and '"big
government"

power—in business

operatives as well as businesses.

monopoly

in labor

elsewhere, They have led to crip¬

a.T1^vels'.

the

extension

competition are
making the
efficient.

■~et us examine these problems - important means of
I1? t.urn' V
".■
T 1'
;
f U. S. economy more
.

...

The

organizations

group1 to set
in

countries

the

has

narrow

other

S. 'and

been

conducted

context

growing

faster

than

comparing

into

annual rates cf increase in GNP.
Mr. Khrushchev -of the Soviet
Union asserts that Soviet GNP is

unions and co-op-

communism over capitalism. So
far, our best reply has. been that

o/p^oducteonTnd S«, Hhhbnn^
automated
ment

making

rules and keeping the

the

score!

of GNP

progress.

GNP

which

oft

re-

an
economic

includes

invest-

goods and military outlavp
do

not

add

eovl

barriers to* entry
occupations, or

gram
our

"ervices
£odTce

lo.e

these

Why should

the

mod?

unemoloved

and

couM

t^ev
urooilv
and relocated in the
tZ
f

stoppages-in key industries.

(A) Continuous "Easy Money.";
theory is advanced that the]
"tight money" policies, occasion¬
ally imposed by the Federal Re¬
serve
authorities, have "slowed the
growth"
of
our
economy.
Some theorists say that the pres-]
Administration

ent

has

bought

price level at the cost of ;
unemployment. Theyv call for a
monetary policy of more or less;
continuous • ease,
instead of the flexible policy that has been pur- •
stable

sued.; They, allege
that "tight'■
money" '1 policies have produced;
the rising interest rates of recent v
..

which they say are doing

years,
much

contentions.
the

in 'these

find, merit

fail "to

American1

to ; the

damage

people.

amount

In
of

free

economy,;

aggregate demand;

is the ^product of millions of in¬
dependent decisions of households,businesses
and
governments.

decisions

These

this

For

by.

attitudes,

through time.;

and fall

the Federal Re-,

reason,

restrain

must

serve

affected

are

psychological

people's

which rise

aggregate.

were

■:

■'

are;

How

this

■

•

*.'•

•

the

current

vihd

become

nrohlem

imDO?tent 1*

automation spreads. It will
be
solved

policies

spending,
argued.

that

neve;

suoer-easv-monev

massive

as some

government

Democrats have

Nor will it "go away," as

some, Republicans hope.
interstate measures are

Because

needed; it

demand when it flags.

policy

monetary

over-;

-encourage,

A flexible

balance wheel.. Under

necessary}
policy of.

continuous monetary ease;" excessive demand and inflation would
inevitable.

be
-;j

Some

■

advocates

continuous

run

bring about

long-

balance, between demand arvd

supplv

would produce

agricultural

products?

into

becomes

must

•

$J the^u" S^mnom
is

and

"easy

How to move several million rela¬

Fere

when

exuberant,

conclusion

new

creates"

demand

money" ' concedes that; it
inflation; but they,
argue
that the economy -would:
Public discussion of farm poli-;
benefit nevertheless by fuller em¬
cies unfortunately has come to be.
ployment and more rapid growth.,
narrowly focused on the disposal of
output. • I believe that their
of surpluses. The more b~sic issues
'

Third, Farm Policy

overcome it

Lcictv

in predatory acts, or to
or to endan¬
ger the national security by work
restrict. production,

...

will

/If semantic ,U' S' let
broke out
this time ^ trao.

criterion

up'

trades

au.omat on itselt creates? By this

R^tewhich

both

are

unemDlov

wiiriricrefse-untess

auf0mat^on itself

wittingly, we f— ^
drawn into a
opponents

structural

Sj 'JS

Soviet GNP will not grow as fast.
in the future as it has in the past, trained
anyw-v. the amount of our.
GNP is still much greater.
TTn-

with the U; S. S.

new

to' engage

GNP

and this proves the suoeriority of

adequate

questions.

E,T °yrnt Act dld, n0t °f itsel! ject the increas.e
add to the powers of government
fill"
tably

economic

not

money"

"rJ

through good times and bad. .For eratives from most of its antiDominant Economic Goal
pas* three years the unenti^ monopoly laws? Clearly, the gov¬
For the Sixties
" "
^
X,e ,^)rn}e^ between 5% ernment of a progressive economy
is
regrettable
that
recent'3J* °r the labor.; force too.; cannot afford to allow anyprivate.

progress

the

fluctuations and maintaining high

requires an enlargement
Federal expenditures relative

undue concentrations of

anti-monopoly ?laws

our

°it
organizations
p,^aie organizations,

unemployed, or under-employed,

;

significant action to reduce inequaleral

precisely

monetary policy or by a policy, of
continuous* monetary - ease;
and

second critical economic prob¬
lem of our age is how to deal with
.,

One desirable mqasure is to ex¬
structural Unemploymenttend our #nti-monopoly laws to
that the American people
^ , . c^ura.. 'Unemployment - is cover all private economic organi¬
pursue a plurality of goals, rather
a. ^md
involuntary idleness zations, including labor unions and
than - a single goal. Finally, this which, results from basic shif ts in co-operatives as well as business
review leads us to inquire what,
or -1? technology,v. and firms. The'-principle of a
truly
kinds of new Federal policies and. which cannot be cured simply by general
anti-monopoly
law.
is
actions are needed in order to expanding a.g g r e gat e demand surely sound." Is it not
paradoxi¬
produce rapid economic progress through monetary arid fiscal meas- cal that the United
States, which
—the goal that will probably dom.y idle. coa] miners in relies primarily upon competition
inate
American
economic
aims west Virginia, railroad workers in.
in -open markets for the proper
during the 1960s.
Pennsylvania, and farm workers allocation of -resources, exempts
First, let us define this goal a
such important private economic
more

; are:

commonly

efficientlv

veals

little

to the national income.

seC0nd, utilizing

found expression m the free publie school system, in child labor

They

nological Progress.

farm

automation.

great expansion of our nation, especially after the Civil War, ere-

whether

Constitution asserts that the Fed- ! goals have changed with national"
First>
eral government was established circumstances and needs.
It re-,',a„.
in

Presidential;

economic progress
stimulated by a flexible

Whether
will

the

campaign;

progress

suggest

the

was

election

it be called the Con-r
ference on Adjustments to Tech¬

and

freedom

debated

were

progress

individual

tions to structural unemployment

technological

eco-

nomic goal first to receive formal 4.

Policies

National
Aviation
and
Space ■* Fourth, making fiscal and mone-' pling work stoppages such as the
nomic growth.
Agency; it passed the National tary policies more effective.
disastrous steel strike
of
1959.
Each of these goals emerged to Defense Education Act; it greatly
Fifth revising Federal taxes to They cause undue restrictions up¬
a
position of prominence in our expanded its support of basic re- strengthen
incentives, and to aug- on the entry of workers into trade.
national consciousness at a differ- search through the National Sci- ;ment
savings and risk-taking in-: They produce "featherbed" work
ent era of our history.
Each led-ence Foundation
These, are. de-,vestmentr ■
,
5-v v-. rules, - raise prices, restrict pro¬
to its own distinctive
type of eco- suable kinds- of Federal action to
.
• ,s ;■/. ...
;
V*
? ; duction arid hinder the mobility of
nomic policy.
*
' r " ' 'foster progress, but much more issixth, promoting basic research capital and labor. Clearly, the re¬
Historically, the maintenance of needed.
r 1
and^education in all fields arid at duction of monopoly power; and
price

■

which

"structural" unemployment caused

technological

nicuiiunm.

with the Soviet Onion has become

ends,

individual
lnaividuai

promote

price

mainly

government

exoand
expand

change

remained fairly stable. There has
been growing unemployment, ow-

Jacoby

ODnortunitv to moderate business

cycles

by the Federal
I suggest, that there
major problem areas-,in;:

government?
the U.

-.r;

techno¬

The monetary and fiscal policies *;
threaten;
their dobs.
A fast-paced techno-; that will help.move our economy'
toward its objectives need to bef
logical* society cannot afford to
Two
leave, labor supply-demand rela¬ clarified; and strengthened.
tions-to; chance; it must act to large issues have emerged, whichf

logical

can

programs of action

are

about

■'

;

•

because

cxidngc.

other

and in

feel

be translate this genstrategy into more specific

eral

workers

business,

growth."

become

clear

States

' How

that

,'w .time which require study and ac- should be- to convene a
working
,'
Most recently, the sootlight has tion by the Congress and the,Fed- *:
conference of the best minds i.n
shifted to the goal of "economic eral executive," They ^ are :.\v ^ * -

result of

during the 1950s, both

the United

countries.

discussed.

Hence, the fear of mass

"to the fore

be¬

are

ing extensive¬

Strategy for Rapid Economic;'''
Progress in the Sixties *

by a deficiency

unemployment
receded
in
the
public mind, and the economic
goal of a stable price level came

eco¬

nomic goals of
States

than

tively unproductive farm workers
more rewarding occupaHons?
Further annual tinkering with the
level of price supports or new re¬
finements in production controls
will
avail little,
and
will only
compound our difficulties in the

because
effeetj

error,

mainly

they: ignore the damagingof

pressure

persistent

inflationary

efficiency

which,

have

tant

tion.

seen;, is the most impor¬
factor in increasing produc¬
If

boom

allowed

unchecked

long enough, it leads
to lessened efficiency in manage¬
ment
(nearly
every
business

„

makes

profit), lower productiv¬

The

plain fact is that a strong
po'ley for agriculture has be¬
come
essential, both to stop the

new

ity

can

end.

hold

workers

sional

fe..

anyone

job), and misdirection
(nearly all invest¬
to pav off).
Occa¬
checks to the growth of

investment

ments

(nearly

seem

ff-'V

Volume 192

thus

demand

Number 6008

workers,

The Commercial and Financial Chronicle

ample, the coverage, duration and
of unemployment insurance
benefits should be enlarged/ And
Congress should give the Execu¬
tive power to adjust income tax

expansion after years of business

rates within prescribed limits. But

spur

man¬

and investors to greater ef¬
ficiency in order to maintain their
earnings
under
less
favorable
conditions. In the initial years

output

recession,

pause

the

per

prospect

that

the

man-hour has spurted sharply up¬

balance

1955). When a boom
grown old, the rise in pro¬
ductivity has fallen sharply (i.e.
1957). The evidence — admittedly
incomplete — strongly
suggests
that
a
flexible monetary policy
fosters the long-term progress of
has

free

reasons—including

will

changed

Federal

feasible

The

taxes.

in the Sixties.

and

bring about more rapid economic

academic

Some

personal income

"private opulence and public
squalor."
They accuse the pres¬
Administration

that

people set

40%

ducing

all

and comprehensive

the

Federal

scope

activity), he finds that it was 23%
in the fiscal year 1952, the last
complete year of Democratic rule,
and again 23% in the most recent
fiscal year 1960! Federal expendi¬
tures
bear the same relation to
income

national
bore

eight

ago.

the

"starved"

has

Eisenhower

that they
If, indeed,

today

years

public services, we must conclude
al¬

had

malnutrition

their

that

ready begun under Truman!

productive

tion

family trusts,

The

point, however,

important

is that the advocates of "big gov¬

demon¬

the

for

need

the

strate

relative

failed

have

ernment"

Federal Govern¬
ment at the expense of the private
sector.
Have they considered the
enlargement

business

will

rates

make

should re¬
income tax

put

Mr.

people

elec¬

that the U.

15%

foreign

Speculation is rife

aid.

There

Passman of Louisiana, is
leader of it.
Certainly

ring

down

will

aid

have

drain

the

to be cut
gold is to

be halted.

domestic

spending,

Mr.

Kennedy will run into trouble on
his

new

point

frontiers

His

campaign.

that his
will not cost

campaign

the

medical aid program

Research

Committee

Rules

•

mittee

members

sort of

check

These 437 members
bills

1800

sion.

of human

ses¬

the whole

They range over

scale

grievances, hopes

Several years ago

there

was an

uprising against the stranglehold
the

committee

adopted

rule

Chairman
call

the

and

House

which

could

committee

the

bill
after
30
days,
thereby bypassing the Rules Com¬
up

didn't" work

mittee.

returned

who

the

Rules

the

procedure.

liberals

and

the

want

the

committee's powers

curtailed now.
seriously that the House

doubt

its

any

Education

new

money

those

is deceptive.

sober

Ex¬
'

DIEGO, Calif.—Real Estate
Distributors, Inc., is en¬

SAN

Mutual

gaging

business

securities

from offices in the Bank of Amer¬

Officers are Byron
President;
Paul
A.
Vice
President,
and
Charles W. Froehlich, Secretary-

ica

Building.

White,

Peterson,

Treasurer.

Seymour Co/Formed

PERTH

N. J.—Nathan
Inc., has been

AMBOY,

Seymour

Co.,

formed with offices at 58 Madison
Ave.

engage

Officers

business.

securities

Seymour

are

Buchsbaum, President and Treas¬
urer;

Paul

Dr.

Zito, Vice Presi¬

dent, and Rosalie Zito, Secretary.
Mr.
Buchsbaum
has been con¬
nected with B. N. Rubin & Co.

judgment will make

R. E. Williams

Opens

introduce bills
solely for publicity purposes in
the knowledge that if they get by

HO-HO-KUS, N. J.—Roy E. Wilr
liams is conducting
a
securities
business from offices at 50 Frank¬

the committee the Rules Commit¬

lin

members

Many

tee will hold
The

♦

them

so-called,

liberals,

Turnpike.

up.

are

Now With Paine,

making all sorts of threats.

(Special to The Financial

They are going to punish Harry
Byrd of Virginia, Colmer, Whitten

Mississippi, for not giving their

support to the ticket.

Harry

All

social security will have

American

change.

any

one of the most
in the Senate, is
government
can their
keeping his silence and going his
taxes
increased.
A
man
.large amount of wasteful current
augment
progress , by
making making $4,600 a year is now taxed serene way. He would never tell
.Federal expenditures which should
larger investments in. basic re¬ $140 for social security and can't who he supported in Virginia.
,be directed into productive, search »and education. One of theAfter all, he didn't bolt the ticket.
get any of it back until he is 72
growth-promoting channels? Have
striking findings of recent eco¬
old,
providing he earns No one knows how he voted. They
they taken into account the huge nomic research is that the in¬ years
And

floor

ambitions.

and

that

change.

Com¬

and

House

about

the

Real Estate Mutual

some

necessary.

introduce

will

bottled

Rules

the

part¬

Stock

Erdman

£.

Vv i..iam

and

for, to weed out good
legislation. There are 437

realized that

the

and bad

■

tie

years,

been

the

Byrd,

respected

Webber

Chronicle)

Calif.—Robert J.
affiliated with
Paine, Webber, Jackson & Curtis,
626 South Spring St. He was for¬
merly with Dean Witter & Co.

LOS ANGELES,

Zolg

has

become

men

Federal

The

capacity

wfcat

That

legislation is

radical

so-called

our

movement to cut it down. Con¬

foreign

tion.

Basic

E.
an

and

ner

spending on
With these two
legislation the

part.

sitting

men

Latin

drain

the

years

the

devoting to capital forma¬

Promoting

will

office
and

gressman

Kennedy's

represent

wild

any

Committee

been

sys¬

off

when

headache

buil'ding'ti.p'in Congress for

This will

head

House

Kennedy's

has

investment every year,

mere

whether he won't cut down

between
the 25% of its national product
that the Soviet Union is plowing
the

recount

than two-thirds

gold reserves.

to narrow the gap

into

can't

you

enters

strong

and simpler

all,

America

theft'they 'must support

broader-based

Sixth,

hundred

several

indict

has

firm

is
are

the state.

candidates

If the

tem of income taxation.

now

government.

in/Washington

machines in

per¬
realistic

American

economy,

and

the

revolu¬

tion officials and there it will end.

really
emphasis
upon economic policies that will
accelerate
the
progress
of" bur

against

little

by only some 9,000 votes, will be
that State's Attorney Adamowski

corporate

assets.

the

help

But

conducting

betting that the only result of the
Republicans' demand for a recount
in
Illinois
where
Kennedy won

adequate
allowances for the depreciation of

action.

than

voting machine, it is pointed out,
and the state of Illinois has voting

and

intend

apparently, in the world,

Rules

restoring the old Southern Con¬
servative-Republican coalition to

up.

After

tax

levels,

and

that

company

elected

for

and. Congressman
Colmer of Mississippi, a member
of the Committee, with a view to

any

indulged

House

the

Committee,

transgres¬

minimum,

the

sonal

such

of the U, S. economy/

At the
duce

how

Wiseacres

dimin¬

effort,

when

individuals of fine social
backgrounds.
No

their

for

To escape these

terrible

are

even

are

excuse,

Heavy taxation of per¬

progress

back

revolu¬

are

economic

and

ishing savings and distorting in¬
vestment. Thus, it is impeding the

percentage

accurate

relate

sions-

;eral cash payments (which is the rate, bring down progressive
measure

while

they

kids

our

lines

of the na¬
tional income formed by all Fedmost

they steal automobiles and engage
in hold-ups. Quite often the head¬

into the oil and gas

business.

hower administration. If one com¬

the

think

sonal and corporate incomes is re¬

have been "starved" by the Eisen¬

putes

Chairman

Repre¬

Virginia,

Howard

delinquents

countries

with

conference

been

America,, is that
this country are

Latin

juvenile

avoid¬

and

than

income

gains, and

services

Federal

the

tax

intricacy

buy tax-exempt securities, trans¬
form ordinary income into capital

tional power" by a

sertion

less

that

far

rates

public services. They propose
to restore our alleged "loss of na¬

Erdman,

sentatives

countries,

the youngsters in

better

the

great increase
in the proportion of national in¬
come spent by government.
.'y *
The facts flatly refute the as¬

ticularly

young

"starving"

evasion

Notes

par¬

other

and

the Federal level.

American economy as one of

ent

States

actually sub¬
jected to
tax.
Yet progressive
rates have been pushed to the al¬
most confiscatory level of 92%, at

characterized the contempo¬

rary

Stock

York

Exchange,

associate
The difference between the United

other

personal

figures

have

New

ance, and tax morale seems to be
slipping.
Exclusions, deductions
and exemptions have been carried

higher taxes are necessary to

progress.

the

nounced

encourages

(B) "Big Government." A sec¬
ond major issue is whether large
Increases in Federal expenditures

have

point where it is having seri¬
ously adverse effects upon incen¬ tionists. Venezuela is today going
tives, savings and investment,. The through a revolution staged by
university students.
We
tax is incredibly complicated.
It young

the

for

the

Taxes

policy of continuous mone¬
tary ease is not only undesirable
not

bers

A
truly critical matter is re¬
vision of the structure of Federal

will

T T

William

but

•

H^ris, Upham New company,
& York, mem120 Broadway,

BARGE RON

BY CARLISLE

•

Ot Harris, Upham

the News

Random

has grown in weight and

United States

econ¬

not

during

ternational balance of payments—

why

and

Fifth, Structural Reform, of

in¬

our

private

and

•Ahead

„

i960's.

tard it. There are, of course, many

other

not

materially

and does not re¬

economy

need

omy

the

between

present

public sectors of the U.

(i.e.

ward,

FROM WASHINGTON

scaie

agers

(2187)

Joins

Reynolds Staff

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—James
has joined the staff

Graziani

annual increments of revenue

the

will

produce in

growing econ¬

omy?

that

Granted
benefit

lays

from

nation would

the

Federal out¬

larger

and

education,

defense,

that

system

tax

Federal

present

research, it would also profit from
reductions of other kinds of ex¬

penditures which are not giving
our society full value
per dollar.
Two billion or more are annually
wasted

subsidies.

farm

spent

are

sums
*

related to
tain

their

and

veterans

families

service.

war

cost

great

Great

benefits

to
not

We main¬

excess

naval

air bases which have become

and

technologically

obsolete,

because

Congressmen insist on them. How
greatv

thrust

economic

could give to
by redirecting

progress

into basic research and

the

billion

$4.5

the

present

growth under a stable
Over

Federal
annual

can

revenues

I chaUenge

protagonists of

Federal

ger

Government to

big¬
de¬

Federal neace-

scribe worthwhile
time

price level.

period Federal
rise nearly < 50%.

10-year

projects that will require all
huge increase in revenue,
less
a
further increase
in

this

far

taxes!

Charles

Halleck

chinery and equipment per work¬
er.
Investments in the knowledge

Some

new

fiscal

policies will,

enhance the growth

stability of our economy.

House
already

have

hard

time

removing

him from his Chairmanship of
Senate

Finance

richly

the

Reynolds & Co., 425 Montgom¬

ery

St.

Walston

Committee.

and

or a

The offering is

securities.

investments in ma¬
buildings.
Because

than

chines

offer to sell

This announcement is not an

their

duce
span

returns

over

solicitation of

offer to buy any of these

November 29, 1960

long

of time, and their values are
diffused throughout soci¬

$1,500,000

widely
ety,

it is wise for government to

spend liberally for these purposes.

TKNAX. INC.

be consid¬
Federally sponsored re¬

Among measures to
ered

are

institutes and

search
tension
and

He was formerly
Co., Inc.

made only by the Prospectus.

basic research and education pro¬

great ex¬

Scholarships

Federal

5%% Convertible Subordinated

Fellowships.

Due October

Conclusion

•

Debentures

1, 1970

If the American people demand

Federal

their

that

government

pursue

ciency

Price 100%

policies to raise the effi¬
the

"across the

mark

the

U. S.

boards," the 1960s

can

Copies of the Prospectus may be

greatest decade of eco¬

nomic progress in our

and

For ex¬

plus Accrued Interest

economy

history.

such

other

dealers

may

obtained from the undersigned and

lawfully

from

offer these securities in this state.

revising rather than by enlarging
its role in the U. S. economy, gov¬
ernment

can

continue its

dustrial

enable

our

leadership^of the world.
by Dr. Jacoby

*An

American

hi.,

Nov.

Petroleum

Myron

country to

Lomasney

Co.

technological and in¬

67
.

of course,

has

skills of people pay off more

of the

than the increase of ma¬

progress

and

will

$1,200 a year.
j Minority
Leader

ex¬

normaleconomic

result

agation among people is a much
more
weighty cause of economic

produces an
increment of about $3.5 billion, as
svstem

tax

education,

penditures now wasted each year.
Moreover,

of knowledge and its prop¬

crease

1960.

before the
Institute, Chicago,
y•
,
;

New York 4, N. Y.

Broad Street
»

•

BOwling Green 9-8120

with

tiwt'i'w/"? '>•&.y^T"#' >

<lYWmwWVttW

(2188)

The Commercial and Financial Chronicle

BANK AND INSURANCE

J. W. Davis Joins

Thursday, December 1, 1960

...

SECURITY SALESMAN'S

Parker, Ford Co.

STOCKS

LEO I.

BURR1NGTON

CORNER

DALLAS, Texas.—Parker, Ford &
Co., Inc., Vaughn Building, has
acquired the outstanding stock of

BY JOHN

BUTTON

the Davis Securities Co. of Dallas.

This Week

Theannounce¬

Bank Stocks

—

ment

FOURTH FEDERAL RESERVE DISTRICT BANK

Fourth

The

Federal

Reserve

made

STOCKS

District,

which includes western
Virginia and Kentucky,
bank headquarters in Cleveland and branches in Cincinnati
Pittsburgh.
Twelve of the nation's leading member banks
based in the area.
While population growth during the past

Pennsylvania,
has
and
are

decade

has

while

been

West

above

Ohio

and

parts

Pennsylvania

stagnant

West

Kentucky

and

Virginia actually has lost population,

and

has had

Ohio

population growth, up 22.1% since 1950. The
has been fostered by the amiable folks who moved
out of rural West Virginia.

average

rise probably

lie

Customer's Friendship and

an Alert,
Cooperative Staff Creates Business

was

by Les¬

Lagoni,
Parker, »Ford

This

Chair¬

Board

Mr.
said

ness

former
dent

The heart of

the greatest industrial complex

of the nation is
The region

has

diversified

into

chemicals,

plastics,

glass, and non-ferrous metals in
the

goods, paints,
Historically

rubber

recent

years.

has been built around the steel and automotive industries.

area

Proximity to

materials of steel making—coke, iron ore, and
are
available to industrial plants.
The re¬
gaining of some of the area's formerly strong position in auto¬
motive production has taken place.
Over a dozen leading steel
companies, five rubber goods firms, four oil concerns and four
raw

limestone—readily

glass producers are among the nation's
companies headquartered in the District.

of the St. Lawrence Seaway is providing an
route to markets and is supplementing the
transportation network.
Greater Cleveland's

emergence

present

key

rail
in

the

nation"

industrial

theme

certainly

should

find strong support

from people who show a preference for living
Educational facilities are excellent,
productivity rates are high, and per capita income rates are
notably lofty.
Leisure time hours, for those individuals with
to work

excess
or

working to live.

over

after

energy

day's work,

"sit-down" sports as

to be the

be utilized for such spectator

can

seem

area.

region
do not stand out significantly in growth of assets, deposits, or
loans, the capital funds to deposits positions are strong in several
instances.
Since limited branch banking is allowed, the banks
mainly combine wholesale and retail banking services. Cleveland
Trust has 70 branch offices, Mellon National and Pittsburgh Na¬
tional have over 60 and 50 branches respectively, while Central
National

has

covered
and

over

branches

operation,

Two banks not
Corp. of Columbus

the

tables presented, BancOhio
National Bank of Cleveland, also rank among the
leading banks.
Recent small acquisition steps include

Society

nation's
First

National

cinnati

Bank,

Elmwood Place, by

First National

First National Bank, New Kensington,

and

of Cin¬

by Pittsburgh

National Bank.

Parker,

planned

moves

Butler, Herrick Branches
Butler, Herrick & Marshall,
York

Stock

bers

New

have

opened two

new

branch offices at 25

;

mem¬

Exchange,

Long Island

West Merrick

Heights. These

bring

eight the
Long Island
offices
managed by the firm.
Robert W. Terry will manage
the

Corning

John C. Cronin
co-manage
the Jackson

will

and

Mr. Terry,
the

Total

♦Deposits
9/30/60

Total

Deposits

Total

Assets

Book

Oper.

Loans

Earns.

than

with more
years' experience in the

securities

Weigand

will

have

as¬

Edgar

him

with

sociated

area,

business

registered representa¬

9.5%

National

City

Central

$1,319

2.2%

5.0%

1.8

701

Bank

3.3%
3.4

8.7

29.3%

National

535

3.2

4.0

5.5

18.8

251

11.2

6.1

1.6

29.9

3.2

3.6

—3.1

10.5

4.3

-1.1

8.4

19.5

4.3

Mellon

National

Pittsburgh

1,832
848

National

•

CINCINNATI—

Fifth Third
Central

407

2.4

2.8

316

3.6

272

Union__

Trust

Toledo Trust

2.5

312

*Millions of dollars.

Nine
were

months

11.6

n.a.

for

Associated with tbem

8.5

n.a.

5.4

3.0

—2.3

n.a.

6.4

2.1

3.6

...

over

6.4

Sept. 30, 1959.

n.a. Not

Ont.,

the

$3.51

and

for

earnings

National

for

267

banks

City, Central National,

respectively. For Mellon National per share
period were $7.16, and for Pittsburgh
For the first half of 1960, earnings for Cleveland
same

Central

Trust

Company

$15.88

were

$3.60.

The

other banks have not reported interim 1960
earnings.
Per

Range

Effective

Dec.

1960-1959

National
Central

Trust

1959

Price Divid.

City

370-293

♦Book

361

$6.00

2.40

50-

2.00

4.2

56-

2.20

3.9

172-127

141

4.00

2.8

Union Commerce

Value

National

Pittsburgh

Natl

1.7%

$26.96

$278.73

the

53.36

3.76

41.51

St.,

firm

43.21

730

8.76

114.58

2,610
3,026

1.52

4.2

2.68

30.24

59-

2.40

4.3

4.02

42.07

changed

Zimmermann

Miller, New¬
& Co., Inc.

O.
and

Zimmerman,

and

Vice-

Treasurer.

Fifth

Third

2.50

3.6

5.55

65.88

3.00

3.8

6.88

70.32

370

11.16

107.46

200

♦Book

Value

dividend

Central
and

and

declares
Fifth

Trust

National

1959

November,

Sept.

145

30,

1960,

July,

Co.

last

Trust

10%

stock

1959

Co.

stock

were

respectively.

paid

11.1%

dividend

dividends

City Bank of Cleveland

December,

2.1

by Cleveland
declared

Mellon

National

covered

have

yet

achieve

Board

New

who

given

this

made

referral

orders

has

the
Never has he doubted that
rhany

years.

over

these orders would be executed at
the best

possible price and at the

standard rate of commission.

Also,

although

there

some

and

have

been

profitable,

that

his

has

interest

was

placed first when suggeslpions for
purchase or sale were submitted.
There

have

right

—

have

that

the

way

and he has been

wonderful

not

he knows

them

called

did

wrong

when

times

been

suggested

client

and

good

New

York

American

Stock

Exchange

Stock

Telephone: BArclay
Bell

are

7-3500

Teletype NY 1-1248-49

Specialists in Bank Stocks

Home

When

his

Office

friend

was

immediately

the

ance

the

has

by all member or¬
doing business with

coverage

public, Keith Funston, Presi¬
of
the Exchange,
has an¬

dent

nounced.

'/.""'X'

The plan

firms

requires those member

and

corporations

protection

against

due to fraud

carry

-possible

dishonest

loss

acts

the part of their personnel.
The
574

as it affects the
organizations doing

program,

member

business with the

public, will:

Require fidelity insurance cover¬
age, for the first time, on gen¬
eral

partners of member firms.

Revise minimums for the fidelity
coverage

ployees
tions

required for em¬
member organiza¬

now

officers

and

member

corporations.
Mr. Funston said that minimum

required

will

coverage

each

New

and

York

contact

Mr.

that

market

me.

long

over

Job

heard

thought

telephone
in

man

the

customer

He
dis¬

told

State

firm's

capital

based

require¬

the

that

them

the

Nov/

here's

keep

Board's

town.

important rule
your

—

home

cooperative operator

run

story

had the

client.

Although

man

telephone.
the

five

minutes

in New York

alertness

and he

his

bit weak, he gave me

and

was

the

impressed by
organization,

obviously liked the recom¬

mendation my

he
of

bond'

partnership

type of fidelity insurance has not
been

generally available.

The
are

new

insurance requirements
a revision of Rule

contained in
of

the

Exchange's

General

Rules. This is to take effect within

approximately six to eight weeks,
depending
with

the

the time it takes for
to
comply

companies

filing

the

various

ber

firms

requirements
and

states

for

II
H

mem¬

the

switchboard right into the of¬

the

make

ance

insurance

the

"stockbroker

319

was

ruling feasible,
standard
form

new

explained,

trips or out in the
field. It so happens that my firm
has an office in the city I was
v'siting and when I got in touch

study.

the

that

result

industry working with rep¬
resentatives of the Exchange. This

out

was

exhaustive

declared

the

has been developed by the insur¬

touch; with

when

base

information, but

that

Funston

plan

new

immediately.

him

client had given to

him, and it turned out that I had

Exchange

ments.

Exchange

BROADWAY, NEW YORK 5, N. Y

re¬

a plan calling
for ex¬
panded mandatory fidelity insur¬

friend.

voice

Laird, Bissell S Meeds
Members

that

Governors

Stock

recommendations

not

were

confidence

fice

Request

York

the

Of course, you must do a good job
for people and work for them, and
their interests, at all times.
The

the

national

marketability for their shares, thus investment opportunities
limited mainly to the Cleveland and
Pittsburgh banks.

and

N.Y.S.E. Approves
Insurance Plan

our

Comparison

Members

dividend.

banks

Quarter Earnings
Bulletin

120

the

to be

necessary

long distance call I made through
3rd

business

say so in person when I
turn." And this I have done!

the

immediately called my sec¬
retary and she arranged to have

usually

proposed increasing shares

this

ganizations

our

Trust

2% stock dividend during the first quarter of the
year.
Third Union Trust recently has

Several

one

wizard, and be right
time, in order to keep such
business
relationship
healthy.

BANK STOCKS

January,

to 600,C00 for a stock

financial

UN. Y. CITY

stock

paid

was

ing
will

every

me.

1960.

Toledo

1960,

The

3.00

his

Dutton appreciates it.

tracing and who will handle this
order, and I said, "Tell our cus¬
tomer how grateful I am for send¬

with them they had a message for

agement of Ralph E. Thomas and

500

80-

man¬

TOLEDO—
143-

learned

1,000

68-

then

approved

would

HOUSTON, Texas — Walston &
Co., Inc. has opened a branch of¬

first,

was

two

friendships de¬

always

tance

organization,

new

friend
Who

immediately I wired another
helpful associate in
office who is in charge of

career.

recommended

the

when

office?

cooperative,

The

Exchange,

John A. Thackston.

Trust-

the

his

me.

And

satisfying things that can
happen to a man in his business

Inc., 45 Wall
City, members

fice at 808 Travis under the

39-

Toledo

these

naturally

they looked to

name

New Walston Branch

1,085

4.23

National
Un.__

When

velop

un¬

about ,my

also people who

Then he called my office and gave

1,331

First

Trust

between

are

Co.,

will

450

5.91

2.9

CINCINNATI—

Central

(000)

PITTSBURGH—
Mellon

Newman

Preident

Outstg.

Earn.

Yield

80-

Bank

National-

opened

Dundas

of the New York Stock

George

Mean

You

most

Irwin Miller will become President

CT EVELAND—

Cleveland

There

Share Statistics

Approx. Bid Recent
Price

James

Miller, Newman

man

and

who

friends.

available.

Cleveland

Street, New York

and

client,

see you do more business
succeed, because they like to
help others, and they also like

that

and Union Commerce,

National, $2.33.

mind?

customers

some

into'close

with

some

telephone

from

called

it
thoughtful of
this business for,

the

away

over

and

buy

earnings

the

—

Griffith.

for

has

management

To Be
share

per

Canada

Sons

office

branch
under

8.0

n.a.

are

line

over

cooperation

you.

still

was

Wasn't

you

business.. How

client?
him

age

when

You, Mr. Client

there

spoke

mistakes

'-.'I'

Richardson

5.6

3.9

♦♦Sept. 30, 1960

1960

$5.30, $3.03

Trust

Heights

James Richardson Branch

TOLEDO—

Jackson

registered representa¬

LONDON,

National

But

finished

the

living
,

may be temperamentally\akin to
them and you may create a spirit

that

PITTSBURGH—

First

6.3

—2.5

Cronin

tives.

4.5

Commerce

Union

Mr.

active in the securities

been

Weigand

11.1

and

Louis Brocoli and Mrs. Lillian

are

Trust

There

man

Corning

many years.

Value

n.a.

CLEVELAND—

Cleveland

It is not

long time resident

Freeport

business

apart,

is- quite

are

Thank

was

sides

think about it.

was

wit.i t.ie potential order,

develop

operations.

Heights
of

Freeport office while George

minutes.

and

busy

Here

the

miles

man

of you.

offices

together on his limit as to
price and went to work. This was

and

want to

Mr.

Percentage Change—

valued

market

get

order.

with

already been opened.

We got

man

and myself.

Road in Freeport and 76-11A 37th

have
—**

Why the Referral

tive.

—

the

pro¬

this

and

accomplished in less than fifteen

The client
home office that

in the

the

thousand

number

account had

with

ago

which

also

was

wanted

triangle

another

was

Ford expansion

gram.

Major Banks in the Fourth Federal Reserve District
r

the absorption

Securities

series

the

new

the banks representative of the

group

his friend

Avenue in Jackson

baseball, football, and hockey which

dominating interests of the

Although

telephoned to

months

While there

business, I obtained an
a large block of an Over-

his friends who

transaction

several

hurried

client in my home city.

firm,

Lagoni said

Davis

when

operating.

are

State, who was referred
office at home by one of

obtain

all-water

location

other

held

accounts

Securities

Mr.

busi¬

small

one
man

New York

James Walker Davis

by the
with the
added advantage to the clients of
Parker, Ford's extensive invest¬
ment banking facilities.

The

economical

"best

manufacturing

leading

was

the-Counter stock from

office.

all

profitable

developed

home base.

order for

Mr. Davis will

Davis

interesting

trip
city which is about 1200 miles

joined the
Parker,
Ford

service

substan¬

procedures

from my

Securities, has

continue

Last week I

Davis

Dallas

of how

can

sound

Presi¬

proviaes

Walker Davis,

the able description given to this Fourth District area.

order

example

Lagoni

history

case

tial
man.

coverage

brokers.
will

arrange

for the

new

through their insurance
Member

organizations

be advised in advance of the

effective date of the

new

require¬

ments.
Mr.
are

Funston

also

added that studies

under way

to determine

what additional steps may
dicated to further

be in¬

implement this

insurance program.

-ft
$ If

(

i'l *
i

■'

j?'.

Volume 192

Number 6008

THE MARKET

The Commercial and Financial Chronicle

.v.

market

AND YOU

Others

STREETE

BY WALLACE

students

avoid

(2189)

are

determined

stocks

steel

completely.

welcome

declines

Stone & Webster Names 3 V;-Ps.

the

Stone

prices of the shares

as bargains,
industry that has had
its bad time so early in the re¬

since

Trading
week
out

picked

tempo

its

this

the

considerably to indicate mostly

that

cross-currents

year-end cleaning

have

been

report its 1960
its fiscal year

since

indicated

Estimates

earn¬
con¬

increased

profit which could help the stock
along. It currently offers a yield

schools

some

one

that figured that the well in the 4% bracket.
downturns, of, j September ,V Also ,expected to make a good
October, plus the uncertain¬ showing with its foreign markets'

thought

sharp
and
ties

had

Presidential

election,

prompted much of the usual

Pneumatic
is one of the

The company

Tool.

year-end. cleaning
up
and
tax
selling
prematurely
this
year.

Chicago

expansion

since

neglected

its

range

this year has

been less than eight
They concluded that consequently points, despite the fact that its
there would be little more to be dividend was
recently increased
absorbed
between > Thanksgiving and estimates are for
higher sales
and Christmas. Such notions now and
earnings this year. Its yield is
seem inaccurate.
'
well into the 5% bracket, and the
Where the pre-election markets
price has been around 10 points
had seen a shade under 1200 is¬ under last
year's high even though
sues appear on the tape, the ses¬
machine tool issues were far from
sion
this
week
embraced ( well being
market
bellwethers
last
above 1200 issues per session, one
year.
Y1'. vYY Y YYYY'
producing
1266" which
is
only
,

three

the

under

broadest

Newly-Traded Food Issue

market

of the year, that of Jan. 6.

Turnover,
to

which
of

norm

had

below

dropped

the

three

million

mark early in November,
running between 3% and four

was

million

shares.

Easiness

few

persisted

industrial

the

Losses

average.

blue

the
were

distinctly

minor so the average
that had ranged from 685 to 566
through 1960 was still, until this
week,

able

hold

post-election

had

kets, including that in Tokyo and,
more
particularly,
in
London,
prices

robust

handful

were

market

year.

chain

operating
in
the
metropolitan area
with

the somewhat

misleading

"Food Fair." It has

of the stock

moves

less

line

There

market

with

ex¬

Y J Y':' ;Y,Y.

pectations.',;'.'
little

was

the

horizon

decisive

with

Food

other
in

Fair

sections

has

name

Stores, or
using the

companies

other

Borman

the

increased

name

country.
its

divi¬

half of the year, the company has
been able to predict a sales in¬

larded by a 3% stock payment in
the 1960 period, shows room for
further

likely
extra

-improvement,
that
the
stock

will

this

Yet

of
h

with

prompt

action.
,

drab

Business

and

continued

news

market

analysts

were

was

various

still

good demand for

publishing company
McGraw-Hill Publishing

talking of the doldrums continu¬
stocks,
ing until the normal spring pick¬
standing out prominently on the
up. There was little on the eco¬ list
of
new
highs, showing fat
nomic
scene
to
spur
anything, gains during sessions when de¬
particularly since it will be two mand centered on it.
Earnings of
months before the aims and plans
McGraw-Hill are
the

expected to

Administration

new

unfolded

are

fully.

Dividend

new

additional

pretty much

lows pointed

some

this

record

the

for

year,

set

its

already has
by
a
year-end
below-average yield¬
ing item since its recent strength.
But
with
earnings expected to
been

such

Steel,

York

has

list

turn in

business

shown

lows.

new

profit

even

conditions

oddly with

ability to
during poor

that

contrast

of the high esti¬
of break-even points made

mates

some

during the hectic post-War II
pansion.

Some

the

ex¬

companies

reported profits even when oper¬
ating at less than half of capacity.
So

the premier boom-bust indus¬
try of the past has made some
changes.,.;'
Y. v

Stuart

firm

The

followers

the

Defensive

and foods

issues

were

manager of the

steels

Edward W. Holland

New

York

office

C. F. Bookwalter

Mr.

Wyeth will

continue

the Stone & Webster organization in

continued with it until 1959
except for war years when
with the U. S.
Army. He joined Stone & Webster
Securities Corporation in 1959 in the New
Business Dept. He was
recently elected President of Broadstone Realty
he

was

overseas

Corporation,

these

predictions certainly will have to
be the right one. Steel use as¬
suredly is running ahead of steel

been with the corporation since
1944, begin¬
ning in the institutional sales department and later
serving as
Assistant Vice-President in
charge of the New York sales organ¬

sooner

later

shipments, and it is
that

this

nitely.

cannot

prices,

turns

better

Mr. Holland has

ization. He will continue
the New York office.

simple law

continue

Meanwhile

pressed

one

indefi¬

manager of the Sales Department in

well-de-

issues
as
Republic and Youngstown Sheet
among the giants are offering re¬
of

such

Deposit Ins.
Corp. Proposed

[The views expressed in this article
do

not

cide

necessarily at any time coin¬
those of the "Chronicle."

with

They

presented

are

author

those

The

of the

Pistell, Crow
C.

Pistell

Dharamsey
Pistell,

and

have

Hoosain

been

elected

Vice-Presidents

Crow

Mr.

York

Gerard L. Regard was elected

Lamula's

tinued

propose

Vice-President of the firm.
•

Dealers
'•

•••

meeting, Nov. 29, by former As¬
semblyman John Lamula, Presi¬
dent of John Lamula
Investors,
Inc., members of the association.

Inc., 50 Broadway,
City, members of the
American Stock Exchange.
New

the

■

con¬

part: "As members

to the New York Security
Association

assessment,

statement

based

system

volume

upon

industry

voluntarily.

we face justified
government
crackdown. The challenge is clear,
and men of good will must accept

the

responsibility that
enjoy.

"The

New

initial

York

guarantee
the

Boston
time

same

member

clearly
tion

step taken by the
Exchange to

Stock

the

firms

lately,

ciation

and

later

faring

group

was

bit better than it has

volume is

tive

consumer

products.

and

Meiklejohn of American Machine

suring bank deposits, which estab¬

lishes

the

se¬

blyman, is

the

luncheon

Cleveland

meeting

Society

after

fund

the

Federal

guarantee

proposal of

our

perhaps
a

"The first consideration for

Analysts to be held Dec. 7 at the

curity dealers in this

Mid Day Club.

truly merit the responsibility, lies

era,

deposit system

alternate proposal

group bond to effect the same

Mr.

public against losses.

the

Security

This is neither

offer

The

Lamula,

New

now

York

and Assistant

former Assem¬

Deputy Clerk of
State

the

buy

nor a

solicitation of

offer

sell

any

of these securities.

November 29, 1960

Y; .*

•.;

•

Y '

•

.«

•

" Y

•'

Robosonics, Inc.
COMMON STOCK
v,

(Par Value $.25

per

Share)

OFFERING PRICE: $5.00 PER SHARE

other

electronics, Motorola doesn't loom

long time, both on reports that
foreign sales of machinery are
doing well, and on expectations
that a spring pickup in domestic

may

as may

be obtained from the undersigned and
lawfully offer these securities in this State.

importantly on any lists of high
yields. It is an issue, however,
where the floating supply of the

business

Copies of the Prospectus

from such other dealers

some

will

find

popularity

them

after

shares is reduced

by the fact that
of its capital¬
long ization is tightly held.

back

than

tylC.

third

hiatus.

Steels Evoke, Interest
j
neglected Y
member in this group, holding all
Steel shares, and the steel in¬
year in
a
range of less
than a dustry and its problems, all have
dozen points and lately well above made up a major enigma. Some

Time & Life

Building, Rockefeller Center

Ex—Cell—O has been

■

;

PLaza 7-2030

New York 20, N. Y.

Assembly

Speaker.

offering is made solely by the Prospectus.

NEW ISSUE

such

the

objectives."

Foundry will be guest speaker

patterned

180,000 Shares

automo¬

the

date,

NASD, should seriously consider

present

/ v

tool

The

New York Security Dealers Asso¬

and

prominent at new volatile items as Texas Instru¬
highs, the selected favorites in ments
running into urgent profitcategory including Coca Cola,
taking on any show of strength.
Campbell Soup, Pillsbury, Her- Motorola is still
favorably re¬
shey Chocolate, Gerber Products, garded in some
quarters because
Borden,
Chock
Full
O'Nu.ts, it is among the giants in the
newly-listed Borman Foods, Cali¬ consumer
market, with the sales
fornia Packing, Hunt Foods, Con¬
growth from its increasing par¬
solidated Foods, Wrigley, National
ticipation in the prime electronic
Biscuit, Minute Maid and H. J. fields
only
starting
to
show.
Heinz—a rather long and compre¬
Nearly three-fifths of its
machine

the prob¬

intervention.

government

this

The

simultaneously forestalls

Deposit Insurance Corporation in¬

the

even

and

their

bonded

which copes with

lem and

David

—

were

hensive list.

losses

require

step in the right direc¬

CLEVELAND, Ohio

bumpy

with

goes

the trust they

Cleveland Analysts to Hear

going

Other¬

wise

the recent Boston
catastrophe was
proposed to the New York Secu¬
rity
Dealers .Association
at
a

Names Officers
Executive

establishment

of the

public. Wall Street must recognize
the
great opportunity to police

Security
Deposit Insurance Corporation to
guarantee the public against any
losses resulting from failure of a
security firm along the lines of

only A

John

foremost in the protection

Sec.

than 5%%.

Bumped
found

wholly-owned subsidiary of the Securities
Corporation, which is
engaged in lease financing.

that

year

have

Philadelphia office.

iooOMr'JB00k^alter
1928 and

several times have been
caught
by premature predictions that the
end of inventory liquidation
by
steel users and hence an improve¬
ment in the steel operating
rates,
was at hand. But the
thinking is

and

popularity.

Electronics

favored

Wyeth

its

Electronics

Defensive Issues Liked

& Nashville.

associated with the

keep
appearing

from

year-end

Central and Louisville

Vice-Presidents of

are

bolstered

extra. It is

cleaning up, come to almost double its dividend
in
well-depressed
issues, commitment, there obviously are
as
Chrysler,
Bethlehem hopes of more liberality in the
to
Standard
Oil of
Jersey, future
justify
its
market

even

New

new

payout

news was

discounted in advance, even where
the action was unfavorable.
The
lists of

Wyeth

Messrs Bookwalter and Holland

prospects

be retained.

Through the desultory markets
there

the firm.

Bethlehem, like most of the

others,

it Y

payment

ward W. Holland and Stuart Mac R.

didn't

Steel

week's

•

business

yield

Bethlehem

with

dend twice since it has been pub¬
licly held and has shown an up¬
trend
in its
profit for the last
four
years.
It operates with a
fiscal year ending June 30; and
based on the experience of nearly

market

upturn

& Webster Securities
Corporation, 90 Broad Street, New
City, announced the election of Charles F. Bookwalter, Ed¬

improve.

connection

looking for any crease of around
25% for the cur¬
rally, yet, the rent fiscal
year. Its well-covered
preaching caution dividend
payment,
which
was

put the general

averages

;

consists

last

were

narrow

effect

early

year-end

majority
the

little

market sentiment locally.

Y Only
a
spectators

have

offering

Detroit

im¬

the

rally

carried it. Breaks in foreign mar¬

seemed

only added to listed trading

was

supermarkets

stubbornly

above the 600 line where
mediate

Borman

hobble

defensive foods, Borman

in mid-year and only had its first

public

Market Holds

chips

the

hasn't had much time to build up
a
wide investment interest since

York

the

cession could be the first to show

cluded with the end of November.

indicated

for the stock market for awhile.

There

first

ings

much

and

up are

the markets broadened

and

low. Ex-Cell-O

1960

The Commercial and Financial Chronicle

(2190)

FTVI

X JLlv/

•

Worn
t w v/i lvA

J. i U/U.V

it will "dump" surplus
drive
down
world

that

fears

stocks

By A. L. Gitlow, Professor of

prices.

Economics, New York University

and

national

international economic developments
bearing on our balance of payment problem. Stressed is the impor*
tance of trade to us and to our allies, and the mounting matter of
easing the drain of U. S. dollars and gold. Professor Gitlow says
the cause of the latter "may not be placed primarily at the doorstep
of competition from foreign-produced goods and services." He notes
steps taken to mitigate the causes of our world payments problem,
4 # 4

4nnronnc

view,, these persons

their

point out that
American

Failure

planet

the

It
that

un¬

$23.2 billion
or
5.3% of a

Abraham L. Gitlow

excluding military
amounted to $17.4
billion or 3.9% of GNP.
Such an
argument is fallacious. In a sense,
it is like arguing that the heart's
importance to the body is small
because the organ's poundage is
little relative to total body weight.
The
significance Ipf "-foreign
trade to the American" economy is
better seen when we note that in
the late 1960's some 4.5
million
workers were employed in such
activities.
While 1958 exports of
goods and
services represented
only 5.3% of GNP, it was of much
greater
relative
impotrance m
several
specific
industries.
In
1956,
between 25 and 40%
of
America's cotton, wheat, rice, fats,
and oils, and tobacco output was
sold abroad.1
26% of its output
of construtcion and mining equipment went to foreign lands, as did
11% of U. S. machine tools.
Of
probably greater importance, foreign
trade
brings the
United
services,

expenditures,

totalitarian
totalitarian

potentially
potentially
for all

inhabitants.

additionally,
United States is an im-

the

would

items

either

available in suf-

totally lacking or
amounts.

point

The

ficient

beyond the average
accustomed cup of

far

goes

Amen-

can's

It is more basic
than bone china. Towards the end
of World
War II, for the first
time in its history, the U. S. A.
tea,

cocoa.

became

which

actions

takes

restrict their ability to sell it
goods
and services. Colombia,
Mexico, and Cuba shif) over twothirds of their total exports to the
u. S. A. Canada sends some 60%
0f her exports. Brazil and the
Philippines send better than 50%
of theirs. In particular goods, many
other nations sell heavily in the
American market. It takes twothirds of Chile's copper, onefourth of Indonesia's rubber, onethird of Bolivia's tin, over one-half
of Brazil's coffee, and about 40%
of Portugal's cork output. Over
one-third of Switzerland's produc-

tion of watches and watch movements is exported to the U. S.3
The U. S. is necessary to these
countries. And they are necessary
to it.
Pftiirv

11nHtkA

unitea »taies roncy issues
These observations highlight the
importance of those American
national
policies
which
affect

cording

international

tionist groups.
Tjle

Agricultural Price-Support
-y.

progrramSt
regj.

prjce

farm

supPorts

programs
as

their

major feature. However, there is
an
essentiai conflict between the
of

idea
and

price

domestic

supports

freer fiow 0f foreign trade.

rpj^ confijct may

be simply stated,
include some

raw

The supported crops

to remain so

Ac-

which the United States normally

importer

net

materials.

the

Presi- imports, as well as those which it
for- doeg not jmport jn any significant
quantities of amounts. In both instances, effee-

Office

dent, the U. S. obtains from
eign

large

sources

balance

payments

nations, and has contributed the worthy:

s'^ity ofVe

free

worl^T^

for

1959

particularly note-

are
-

<J) the level; of international

isssxrs srsvFKrs.!!? v,,fc«r«
ST-SnSK
ordinary economic growth in the

® S» fiitSrtiMSSKK

other

^tions

balance of trade and balance of

rose

payments particular importance. ™ st£ n from an anSua° averale
So much so that the U. S. dollar
$1g'billion in 1946-49 to In
has become an international cur- °
j ave
" o£ $19 7 billion in
T->_.
4-U„
rpnrv
tn
thn
nnint
cnmhtimnc anUUdl. dVClctge UX *PA «=*. « U1XUOI1 111
By the >nTTnrnVln/ln..,lv.rt point sometimes
rency, to the 4U„4.
+U
J

devastated areas;

war

and (2) ajd aimed at encouraging
and enabling economic growth in
.*

UIKjerdeveloped
-

■

i.4

nations.

«ii:

. .

£e pvershadowtag
Inncf-cfandincf
,,

that

„

infovnotinnoi

r»nv_

!?y partiCular, c°nscien«ous Euro- year
hal2 a,nd the western >abor' important

pean nati0nS economic resurgence
and JaPa" enjoyed
enormous

outfloW of gold and dolwith the amount

1 ®46-195v3 revealsa

(3) the
shift which occurred an iars continued
in

I950;,Tbus' II immediate char- of the outflow rising almost
post
from
War the
were
nf

World

of
of
this resurgence was their enlarged
ability to ship their products to
the American market, where they
often competed with the output of

acterized by a "dollar deficit" in
foreign nations. This deficit, aggregating some $7.1 billion for the
four years 1946-1949, reflected a

pr0Sperity and high levels
production. One consequence
to

some

of them

years

average

annual

rate

an
<K9

billion in 1950-53 to $5 2 billion in
1959

The outflow of gold and dollars
from the U. S. may not be placed

fantastically "favorable" U. S. primarily at the doorstep of cornbalance of trade. America pur- petition from foreign produced
stimulated chased relatively few goods and goods and services 5 America's

them if U. S. producers and

ized economies. It hurts

trade. Especially
significant are: (1) U. S. agricultural price support programs; (2)
States a wide range of raw mate- U. S. foreign aid programs, both
rials and produced goods vital to military and economic; and
(3)
its industrial economy and con- America's reciprocal trade agreesumer satisfaction.
In the absence ments program, which is under
of trade with other nations, many continuous pressure from protecthese

and

has

Europe,

the ashes 0f war Taking American
A look at the U. S. balance of merchandise imnorts and services
the un- assistance, they helped themselves payments situation in the eight- 0f $195 billion* however

is worth noting,

America

$441.7 billion GNP. In a similar
vein, total 1958 imports of goods

western

reasonreason

portant market to both underdeveloped and to other industrial-

grants,

amounted

arhieve
achieve

tn
to

consequences

dangerous

military
transfers

(1) aid'aimed 'at the
reconstructionof western Europe

Latin-

Africa.

w Hh
witn

gOTermnents
governments,

and

goods

and

TToiinrP

exports

services, ex¬
cluding
only

der

brtaffV exfreme andS
bring
extreme
and

example,

total

them.

Manv

Qfiri

able economic progress in

1958,

uct.

farm and factory, has helped to picture
rebuild

sharpen and update the
by looking at the U. S

raw

gross

prod¬

for

n Ct'

rioic
rials.

ex-

national

of stable

Let

=
'1
o. uaiance or tr<
■America1 ahnT,XsUAlrea'vital'"to fi^t of these two broad objectives long-standing international curfavorabl^.with merAmerica'as sources'of
mate- ^ ^/^"hefped roseT/om sterifn^ the .En«llsh
pound totalling $20.1 billion as services
chandise exports and against
nations we neipea ™se ifom
&
'

4-rx

propor¬

tion

f„HA

and friendly nations
abroad The underdeve oped naIienollv
tinnc flf tVlf» WOrld 3TG lmDOltant
usually tions of the world are important
<C
catptv
ioU.S; XITCll 1 -hoi
well-being, and 'safety.

ports area
small

Set-

.« to

Level

actual, worked to develop underdeveloped These points

aid,

military

aside

Large Scale Rise in Payments

Since World Wat* II, this

production collossus, with its vast
resources and enormous output

srsrssrasRSfst

t.'

peaceful,

importance of foreign trade
U. S. well-being. In support of

the

well

categories:
•

„

minimized and continued existence

Some Americans have

The Foreign Aid Programs.

ting

of the free world.
....

encouraged

not

tivities—potential

unity and integration

will act to encourage the

and hopes everyone

to a dollar deficit.

services, as it is a tremendous
supplier of goods and services to

inter- them.

flow

freer

trade

thereby, for other nations look to
measures
capable
of protecting
themselves from "dumping" ac-

professor reviews

Economics

Thursday, December 1, 1960

unsettle them. Every U. S. action world's free nations. America is period 1950-53, the so-called dollar
*n attempting disposal stimulates a great market for their goods and surplus would have been changed

J
'
00

fTl

TTT

£IYlfl

Ctilvl

KJ*

...

to demand

proec-

services

other

from

nations

balance

of trade

far less "favor-

tionist actions by the U. S. Gov- compared with its exports of goods able" than under the unusual and
ernment. Important national policy and services, a situation explained unhappy conditions of the inl¬
issues are involved, e.g.: (1) shall largely by the war's devastation mediate postwar period was still
America increase the protection which limited output in many favorable but warranted- serious
afforded U. S. producers against other countries. Even its substan- scrutiny. Thus the foreign buildup
their resurgent competitors " in tial outward movement of private 0f goid and dollars in 1958 rested
other industrialized nations?; and capital and remittances plus its essentially on U S defense (mili(2) shall it seek greater contribu- massive, grant and aid programs tary)-expenditures for troops and
tions by its now healthy friends in failed to provide other nations bases in foreign'areas and governsuch areas as aid to ,under- with sufficient dollars and gold to ment aid and grants (non-milideveloped nations an^.o^utu^al-rppydt. Consequently, other nations tary). With these points we see
military security measles?
ij/^^.^rew, down their previously accu-^W'ghlighted the defense and for--:
The Reciprocal Trade Agree- mulcted dollar and gold holdings. ejgn aid issues which stirred great
ments Program'.^fhe first question^ This. a'ffected" * foreign exchange 'national discussion and Congresposed brings un a fundamental rates, compelling governments si0nal controversy in 1959 and
jj s policy: the reciprocal trade with various controls over such jggQ.
we also see why some
agreements program which was rates to adjust their controlled Americans were anxious for their
first enacted by the Congress in rates until they came into line western European partners to: (1)
1934> and which has been re- with the underlying foreign ex- share more in the burden of
enacted subsequently every time change demand supply realities, mutual defense and security; (2)
it has expired and come up for which in turn, reflected the bal- share more in developmental and
renewal. Briefly, the Reciprocal ance of payments picture pre- aid programs in underdeveloped
Trade Agreements Act Gf 1934 sented here. Thus, late in 1949, areaS; (3) ease their trade barriers
represented a major shift in U. S. England devalued the £ relative against American imports; and (4)
tariff policy from the generally to the U. S. $, making their offi- ease their controls on convertiincreasing tariffs which had cial rate £l-$2.80.
bility of their own currencies into
marked America's prior protec-^
In the four years 1950-1953, the dollars, which might then be used
tionist patern. Indeed, U. S. tariff u. S. balance of trade, while still for purchases of goods and servrates had reached a peak in the "favorable," was much less so than ices from the United States.
1930 Smoot-Hawley law. In 1934, during the prior four year period.
While other Americans argued
the U. S. turned toward a freer War devasted economies had been as to the relative roles of the U S '
trade policy. Under the Reciprocal reconstructed and restored to pro- and the western European nations
Trade Agreements program, the duction. More and more they had jn connection with points 1 and 2
Congress granted the President goods and services to sell. Ameri- aim0st all applauded the ideas in
the power to reduce U. S. tariffs cans had both the wish and the points 3 and 4. Interestingly and
?n imPor^ed goods in exchange means to buy. While U. S. Gov- significantly, the western Euro£or reciprocal concessions granted ernment grants and aid were re- pean nations appreciated the
^ ? eAr
American ex-r duced in scale, from $23.4 billion importance of reducing their
f01^' As 11
J.
qA 1 n^n9^o6"\u49 to $1?-2 .billion irJ restrictions on' dollars and gold"
jffs of about 80% between 1934,1950-53, the nations imports of when their holdings of both had
and 1960.
:
,a"d. ser™*s Jumped by increased enormously. To refuse ~
Note the passing observation $24.1
billion. This contributed exchange convertibility and to'
above that the history of Amer- greatly to the rebuilding of for- continue other international trade
ica's foreign trade policy ia marked eign gold and dollar holdings, restrictions without any relaxation
bv a strong protectionist tendency, which increased by $7.8 billion in in the face of these developments
While this tendency was substan- the four years.
would have eventually invited
tially reversed in 1934, protecOther nations were buying their U. S. actions designed to restrict
tionist influences continued to imports from the U. S. by provid- international , trade and the Vut- •
command considerable support in ing America with goods and serv- flow of gold and dollars. Thus, at

petroleum, iron ore, copper, ^ve domestic price supports at
rubber, raw wool, tin nickel, and levejs above those in the world the sentiments of the American ices wanted by it. This was gen- year end 1958, England and other'
newsprint. "Most of our supplies markets stimulate the importation people — and for their elected erally
accepted as a healthy economically- advanced western
of various ferroalloying areas and 0f foreign produced supplies.
If representatives. Given this back- development, being much sounder European countries
made their
metals come from abroad as do unchecked, America accumulates ground, it should surprise no one than an international situation in currencies convertible into dollars,
industrial diamonds, mica, and as- surpluses from the entire world, that the economic resurgence of which one nation acts as a per- Simultaneously, restrictions on the

crude

bestos."2

problems,

serious

Having

the western European nations and petual provider of various forms amount of foreign exchange (most

notably dollars) they permitted
their citizens to obtain for foreign
travel and purchases were greatly
eased,

clear the U. S. will not permit this Japan during the 1950's, in addito occur. In short, it must insulate tlon
enlarging their effectiveits price-supported domestic mar- ness
as competitive producers,

of charity to others. However, it
should be emphasized that the
U. S. balance of trade shift was
sever, its trade relationships with ket for agricultural commodities served to stimulate protectionist not from "favorable" to "unfavorthe rest of the world.
from the world market. That is, pleas by some Ameriean producers, able," but from grossly "favorable"
it practices protectionism in these The
political pressures thereby to moderately "favorable." If the
Clearly, it would be economically suicidal for the U. S. to
seriously
impair,
let
alone
to

Trade

Security

National

and

loosed upon U. S. legislators have U.

areas.

an
eleConsider agricultural crops several times caused considerable
military which are normally exported Bv concern over whether or not the
prowess. In a tense world, Amer- creating
and
maintaining
high C 0 n g r e s * would continue the
ica's
defensive
posture
and
above
national security require: (1) con- world market levels the U S cuts "r
»
emasculate it to meantinued availability of raw mate- off foreign sales of its outnut and ^essness. ,The issue is vital to
rials necessary to, its productive increases its domestic stocks.
As the U. S. and the entire free world.
organization; and (2) the creation the nation accumulates substantial
The U. S. Balance of Payments

Economic

mental

strength

underpinning

is
of

domestfe price suppinf

1 Subcommitee

icf,

Foreign

House of Representatives, Foreign
Policy, U. S. Government Printing

Trade

—

Office,
2

surpluses, .the world
Trade Pol- LUT*'""

Washington,

markets

Government

had

Easing of Foreign Exchange
Control

These actions encourage an increase in U. S. merchandise and

grant and aid programs in the

4 By international currency is meant a service exports. Foreigners who
"..?SUTS'°7
had holdings of foreign currency,
tional payments, without insistence on say English pound sterling pregold as the balancing medium. Of course viously not convertible into U. S.
^tonifsid,e^,c^ tte Curerrency. 'LTh^TfL dollars, curbed their buying from
dence

open,

the freedom

not always based on
which the currency can

but

with

^ This

general

observation, made

in the light of the overall figures. It is
tremble at the huge Supplies which
While international trade is im- purpose of settling international pay- true that the economically advanced
it holds and which Overhang and portant to the United States, it is ments balances. Easy convertibility into countries of western Europe did offer
un_-i

pmiallv

D. C., 1958, p. 6.

Foreign Trade Policy, op. cit., p. 6.

„

Foreign Trade Policy,

op.

ctt.,

12.

•

trnp
i

important

that
,,

the

converted into gold at least for the

tbip' TT"
,

trade

ic
other currencies and or gold is here pre'v sented as a central characteristic of a
the really effective international currency.

<2*

„

increasing competition for U. S. produced

goods and services. The same point ap-

plies to Japan.

<■

Volume 192

Number 6008

the U. S. Indeed, this was

basic

jtimUi-of »V&Ph^Av<!rtfbSll^^:Nawi
they can obtain dollars and in¬
crease-their
U. S.

purchases

from

the

Similarly, foreign tourism in

guished

dollars

permitted

the

service

War he

World

mander

was

the

(2191)

-Second

made

Order

the

of'

Empire, and was twice
awarded the Distinguished Serv¬

Order; he was made an Officer
Legion of Honour and was

tors

of the

awarded the Croix de Guerre and

By Roger W. Babson

purposes. This restriction is also
eased. The consequences are ex¬

the Legion of Merit of the United
States.

Despite what Castro has done to date and his official statements

reduction of the outflow of dollars
and

gold from the U. S.
reduction

Some

the

relative

role of the U. S. in mutual defense

world

and

policies

by
other
economically
advanced nations,
will ease the

drain of U. S. dollars and gold.
However, the longer range prob¬
lem of the size and expansion of
foreign gold and dollar holdings
remains. In the entire period 1950-

world

free

holdings

gold

and

dollar

from $18.7 billion to

rose

$36.9 billion. The $18.2 billion in¬
crease come from:
(1) $4.7 billion
of new gold production and gold
sales by Soviet bloc countries; and

of $13.5 billion in
U. S. payments over its receipts,
of which $4 billion were in gold
and $9.5 billion in cash dollars or
(2)

excess

Government securities.

Ex¬

cluding foreign

gold holdings, at
the end of 1958, other nations held
$17.6 billion of liquid dollar assets

(cash

government securities,
private securities).

and

but excluding
the

time

same

the

monetary

gold stock of the U. S. amounted
to about $20.6 billion. It is reason¬
ably clear that
sistant

loss

general and

confidence

world

two

the

would

collapse its monetary gold
stock and cause a catastrophe in

international trade.
To note the

possibility is not to
expect its actual occurrence. The
dangers being reasonably clear,
the steps
noted were taken to
mitigate them. Beyond that, con¬
fidence

pends

the

States

than

balance

national
relates

United

the

payments.

the image of

de¬

inter¬
It

the U. S.

world

undertook

the Federal Govern¬

missions for

which

ment

him

brought

with

feel

gold stock is unlikely despite the
flurry in the London gold market
when the price of gold rose above
$40. The best hope for all is that

will act to encourage the
unity and integration of the free
everyone

ing the period of the tour he acted
the

Canadian

Queen's

Secre-

assuming

Upon

ing the practice of law to enter
upon a career of public service.
will have under his direction

the

intricate

Canada's

aspects

in all its
major stock

operation

exchange.

marketing

since

the

out

come

been

has

This

reached
cer-

feel

has

its

brutal

been

church, due
of

due

trolled

ITHACA, N. Y.—Harold L. Bache,
managing partner of Bache &

in Cuba

New York, has
presented
Cornell University with a gift Of

Russia

and

orthodox

another

investors

the

ditorium in

possible

make

will

grant

200-seat

au¬

building for

new

School

Business

Administration which

plans to erect dur¬
two years.
The
unit
will
include

the University

ing

the

auditorium
seminar

conference

and

rooms

adjacent to the hall, and the unit
will be one of the finest of its
kind in the

•>

Importance

the

is entirely dif-

the

con-

situation

its satellites.

and

former

through

The

therefore

'from

ferent

*„.«*»»

why 1
have the

reason

should

Lenffth of the Cast™ Re*ime
conquered Batista and his gang,
f thought he was a wonderful
fellow. As long as he stuck to
military warfare, he fared well;
But s*nce be has tackled economic
problems, he is ruining the
country. How long he can hold

thinks

Castro

tive
her

CHICAGO, 111.—Gordon L. Teach,
Vice-President of A. C. Allyn and

necessary

conditions

are

use

products cannot be marketed.

Cuba's

natural
States

market

(which

the

Castro

his best to
trading principle is true for the countries of
Central America, and even South
America; they have the land but
lack the marketing facilities for
their
fruits,
coffee,
and
even
minerals, including oil.
abusing

At A. C. Allyn

doing

and

same

let

leveling trend has
for
centuries.
still hopeful as to
on

keep

ACQUirGSMSXtillCO.
ELKHART,
Ind. — Cruttenden,
Podesta & Co. has acquired the
securities business of the Elkhart,
Ind., investment firm of W. F.
Martin, Inc., Robert A. Podesta,

.managing partner, has announced.
William F. Martin has been ap-

pointed resident manager of Crut-

19th

nationwide.

Graham

Howard D.

the

the Presi¬

Toronto

Stock

Exchange has been announced by
the

Board

the

office

incumbent

second

the

Governors.

chosen from

full

time

occupy

President

outside the member¬

ship; the former President, Arthur
J. Trebilcock, Q.C. retired in 1958.
his

predecessor, General
Graham is a lawyer and Queen's

Casey,

Douglas

Sanford

nounced.

Vice-President,

responsibilities
and

tional

with

Toronto
&

legal
McCarthy.

the

firm

well

known

McCarthy

Government
the

position' and

The

known

is
,

man

have

support.

President is well

new

securities business, founded
his own firm in 1950 and has been
its President and Treasurer since
that time.
Mr.

Podesta

stressed

and

recognized as

since

both

Martin and

Mr.

"The plus factor

accrues
to both principals," he
said, "in that Mr, Martin's local

facilities are now augmented by
our network of coast-to-coast investment services, and we have
added a strong new member to
our growing list of offices in the
Podesta

wherein those who Wayne and Gary,
not are gradually taking
awa^ from those who have.
In
flninehaiim Director
Russia and her satellite countries> this has Been done By ruth- Kurt H. Grunebaum, President
1 e s s stealing of property. In and a director of New York Hangoodwill is

China,

expropriated, seatic

But Mao has sometimes made pay- elected

Corporation,
a

man
Corporation, it was
anproperty taken. Great Britain has nounced by Robert A. Futterman,
experimented with nationaliza- President.
t10n> and payment has been made
jy[r Grunebaum is also Presif°r the c°al mines, steel com- dent 0f Nyhaco Credit CorporaPaiJ?5.s> railroads, and public tion, Ltd. as well as a director of
utilities that were taken over.
the Vanderbilt Tire & Rubber
.

In
these
United
States, the Corporation, Canal - Randolph
labor leaders have the same goals, Corporation,
United
Stockyards
but they work through strikes Corporation and other companies.

began

private

soldier

Lieutenant-General
the

1958.

Canadian
In

and

General

recognition

Chief of
Staff in

distin¬

nor a

solicitation to buy

any

of these securities.

offering is to be made only by the Prospectus.
•'

NEW ISSUE

130,500 Shares

Alarm Device

Manufacturing Co. Inc.

Common Stock
i

Neuhaus

(par value lOtf

per

share)

Co., Incorporated, 724 Travis St.,
of the New York Stock

Offering Price: $4.00 Per Share

Texas' oldest invest¬
banking firm, has recently

Exchange,
ment
been

Mr.

announced.
Darden has been associated

Canada, both in the investment and securities
civil circles and field for the last ten years.
an able and ex—

serving in France during the First
World
War
and
culminatedi, as

sell

HOUSTON, Tex. —The appoint¬
ment of Addison H. Darden to the

Underwood,

Michael

Kletz,

President

investment

been

elected

rectors

Arco

the

bankers,
board

Bruno^Lenchner, Inc.

Michael G. Kletz & Co., Inc., New
York

Copies of the Prospectus may be obtained from the Undersigned in any State in which the
Undersigned may legally offer these shares in compliance with the securities laws of such State.

Golkin, Bomback & Co.

Named Director

Edwards &

has

of di¬

Electronics, Inc.

been

ment, on his own terms, for actual

Appoints to Staff

has

director of The Futter-

members

November 29,1960

Co.,

process

Vice-

have

Business Depart¬
Snyder,

his

staff will continue in their pres-

with Russia's blessing, Midwest."
knows. It seems he is desCruttenden,

This announcement is neither an offer to

The

the

assassinated by some- vvith head offices in Chicago, is
family he has ruined, q member of the New York Stock
other hand, investors Exchange and other principal exshould realize that the whole changes. Its other three Indiana
world is passing through a level- offices are Indianapolis, Fort

Underwood, Neuhaus Co.

perienced organizer, administrator
and executive. His military serv¬
ice

New

that

acquisition involves no loss of
local identity for the Elkhart firm,

throughout

military

the

whole-hearted

received
*

Ontario and both

Miller,

President,
has
been
named in
charge of the Syndicate and Re¬
search Departments.

staff

appointment of an outside
president has been discussed with
The

has been given
for the Institu¬

James E.

ments.

Counsel and is now one of counsel

associated

Sales Manager,
President,
an¬

General

pointed

the

Company, Incorporated, 121 South
Salle
Street, has been ap¬

ap¬

of Lieutenant-General

pointment
dency

The

—

Martin,

Mr.

veteran of more than 10 years in

TORONTO, Canada

mind

even

no one

nationalize
the farms,
businesses, banks, and the few
manufacturing establishments; he
seems to give no thought to marketing. Cuba's wonderful produconly

The

When Castro, at 32 years of age, ent capacities.

out,

Marketability

Americas; but it has been cursed
by wretched and unjust government.

United

country.

people of this world,

Cruttenden Firm

announced by
Cuba is rich in soil, rainfall, Hned t° Be
Deane
W.
Malott, President of
the University.
Mr. Bache is an sunshine, and warm temperatures. one whose
0n the
alumnus of Cornell, class of 1916. It could be the gardenspot of the
The

es¬

tenden, Podesta's newly acquired
in the marketing of these office, at 214 South Main St., its
products. This applies to the big fourth branch in Indiana, and its

the

which

worked

Church.

was

the construction

gaged

largely to

the

domination

Bache Gift

should

larger portion

they,

Cuban situation

satisfactorily

inheritance

Czarist

$100,000

this world trend.

throughout the

Communist Government in

Christian

Co.,

the watch. With only

going

Though I
Cuba, yet

concerns such as Sears Roebuck,
Montgomery Ward, etc. but especially
to
the
large
variety
chains, with their stores in all
fights. They, however, are deeply 50 states of the Union. Even in
Roman Catholic in faith. Hence, case
of World
War III, these
there is a church safeguard which great
marketing organizations
does
not exist in Russia
or
in might come through the best of
many
of her satellites.
all concerned.

The

Cornell Receives

the

continue?

satisfactory

according
Babson, offer the better survival prospects.
concerns

Therefore,
readers are due

feel that

will

Russia

Official Changes

Stock Exchange

and to, therefore, place

ways

investments.

that

alienate). This

Heads Toronto

to the influence of the Catholic
<
'■
his new ap¬ Church. The Cuban people, with
pointment early in 1961 General their Spanish blood, are emotional
Graham will once again be leav¬ and enjoy political and physical

tary.'

world.

Lt.-Gen. Graham

augurs

bullet

larger proportion of their common
stocks in marketing—rather than
the country. The first was a study impartial summary of the situa- in farming, mining, or manufacof civil defense organizations in tion. I have always watched Cuba turing — propositions. Whatever
all the provinces, and the second critically as
it is so close to the future may bring as to the
was the task
of planning, organ¬ Florida, where I have spent over ownership of land or the producizing and conducting the tour of 30 winters.
tion of crops or the extraction of
Canada
of
the
Queen and the
*
n
e
*u
«
,t
,i
nv.
u
minerals and oil> there should alDuke of Edinburgh in 1959. Dur¬ Influence of the Catholic Church ways be a field for companies en-

Public

assassin's

growing leveling process going

different
stocks

situation

Cuban

tain

and

the

their

point where it is affecting

and

provincial

peoples. That image still seems
strong in its essential parts, so
run

muncipal officials in all parts of

contact

of the

aware

Mr.

The

that

will, he says, bring
change in the island's direction. The lesson for investors is

the new President
two
important com¬

Graduate

massive

Either

in 1958

army

the

to be

retirement from the

Following

held by its own citizens and other

that

outcome.

ters.

have nearly half of the world's
wealth. Can this condition always

capitals of Red China and Russia, Mr. Babson believes that

deeply-rooted Cuban Roman Catholicism

about

United States could create calls for
dollar conversion into gold which

the

his

per¬

the

wars

practiced

profession of law, was active in
municipal affairs and maintained
a
keen interest in military mat¬

development, coupled

with freer international payments

the

Graham

General

the

...

Between

pecially

citizens of foreign nations for such

pected to be further enlargement
of
international
trade,
with
a

and unfair^ demands. In all. coun-,
tries, investors- are being attacked
either ; by rheavy taxation or by
guerrilla warfare such as.is taking
place in Africa. Hence, we inves¬

Com¬

British

the U. S. was limited by the small- ice

number

The Commercial and Financial Chronicle

Hanly

E. W. Stewart & Co.,

Inc.

'(2192)

The Covfometcial and Financial Chronicle...

Casey Elected Director

JLVA

Nathan'

JLi

RICH

BY ROBERT E.
A

Mr.Casey
•

Growing and Healthy
■

' '

often

lose

sight of

the

fact that

was

Director

minded of this

recently when

Morse

Co.j

Can

Harrison

Lau
Co.;

Williams

National

Corp.;
Blower

Florida

Co.;

Transcontinental

Capital

Corp.;

Bus

System;
Charles Vantress. Farm, Inc., and
the Southern Maryland Agricul¬
tural Association of Prince George
County.

Senator

New Jersey
addressed the

J. Douglas Casey

Prod¬

e c o

ucts

annual
i

meet-

the

National

As¬

sociation

(Speciai

Jerseyan

O'Donnell

Oregon — Louis W.
now
with May &

Co., Inc., 618 Southwest Yamhili
Street, members of the Pacific
Coast Stock Exchange.

to
H. A.

the

to1 be

much

literature

leaf

New

Keith

Investment Company

prior to the

from

York

the

closed-end

The

Incorporated
Investors

EST. 1925

A mutual fund iilvesting
list of securities

selected for

possible long-term growth of
Vapitai and income.

Incorporated
Income Fund
A mutual fund

investing in

list of securities selected for

from your

available

■

business from 1940 has

fundmen, Senator Williams
just one of 100 Senators.
He happens to be chairman of the
not

Subcommittee

Senate

And

ties.

last

_bills that
the
One of

of Congress.

these

was

amended

S.3772,

Company Act.
by

and Exchange
However, it did no
major

sections

interest

recommended

Li"'*

were

additional
ments

the

describes THE

•

COMMON STOCK

•

jjj

!!ZZ

jjj

FUND of

SECURITIES, IRC. W

A mutual fund

——

investing "for in¬
and pos¬

were

amendments to
Investment
Company
Act
adopted during the recent
no

coroner.
__

•

^
1

v -i

However,

Senator

noted, two other

areas

Williams

of interest

in 1961 for discussion, if not legislative action. One
area he spelled out this way:. "Investment
companies
certainly
have done all they can to bring
the small investors into the capital
market.
But have they brought
may come up

mon

ment

Hartmann

New

include

Ameri-

_,.

Dynamics,

Middle

Utilities, South^ Carolina

Electric & Gas and Southern Corn5an^* ^ eliminated shares of Fiberboard Paper Products, General

Motors and Rayonier.
Boston Fund reports

that during

asset value
$16.67.

rose

*
*... *
4
Total net assets of Investors
Stock Fund, Inc., mutual fund affiliate of Investors
Diversified
Services, Inc., rose to a new fiscal
year-end high of $638,187,751 on
Oct. 31, compared with $559,538,-

Cohu

-♦

Braun

Halli-

and

period holdings

same

Hazeltine,

Speer

Carbon

incorporated in Michigan.
This is the fifth private invest¬
ment
company
to exchange its
shares of Broad

for

assets

Street

Investing this year.
*

Bullock Fund, Ltd. in the

ter

ended

that

Oct.

quar¬
increased

holdings of Anaconda, Babcock &
Wilcox, Brock way Glass, Carna¬
tion

Co., Cerro de Pasco, Fire¬
stone, Food Machinery & Chemi¬
cal, Hudson's Bay Oil & Gas, Hunt
Food & Industries, Mack Trucks,
Missouri
Portland
Cement, Na¬
tional, Steel, Penn-Dixie Cement,
Rayonier, Republic Natural Gas,
Sherritt Gordon Mines, St. Joseph
Lead

and

United

Carbon.

New

purchases include Armco Steel,
M i s s is s i p p i Valley Gas and

Square D.
reduced

-Bullock
Abbott

holdings

Consolida¬
General Dy¬

Laboratories,

Coal,
and

Deere,

National

Campbell

Gypsum.

Soup,

Cleveland

upon

request

share asset value

Equity

ington

Fund

of Well¬

advanced

Lord, Abbett & Co.
New

York

—

Atlanta

Chicago

i d e n

Los Angeles

Sail

Francisco

and

Inc.,

ma¬

Haloid

Transitron).

$12.03 on Nov. 1, 1959, to
on Oct. 31, 1960, an increase
3.9% for the year, after ad¬

quarter figures of EuroInc. show that net assets

fund,

$25,127,304, equivalent to
common
share out¬
standing, as of Sept. 30. The in¬
vestment
company,
which
has
$23.93

per

its

86%

has

appreciated

for the 33 cents per
year-end capital gain dis¬
tribution,
Walter
L.
Morgan,
President, stated in the annual

justment

report.

net

20.6%

the

over

1959.

Sept.

30,
of

out

values

total

Eurofund's

port¬

folio had

appreciated 25% or more
over acquisition costs. Twenty-six
companies showed gains in excess
of 50%, and six had rises in value
ranging between 102% and 203%.
Durign the first nine months of
1960

Eurofund's

net

realized

amounted

and

income

net

short-term

$239,847,

gains

and

pro¬

ceeds from, the company's sales

securities
amounted
$4,071,000 showing net gains
foreign

of
to
of

$901,000.
*

•

Nation-Wide Securities Co., Inc.,
the

balanced

BulloCk

fund

the

Calvin

has declared a
quarterly dividend of 16 cents per
group,

share from net investment income,

payable, Dec. 21, to shareholders
of record Dec. 5. Thel dividend,
which is the fund's 113th consecu¬
tive

quarterly

same

amount

dividend, is the
in the previous

quarter.
*

Net earnings for
for

the

first

nine

Channing Corp.
months

this

$1,112,253, compared
$1,159,782 for the same period
in 1959. The 1960 figure, based on
unaudited figures, included Channing's equity of $294,609 in second
and third quarter earnings of the
year

were

Federal

31,

$20,844,742 reported at the end of

Companies,

Oct.

invested

assets

European securities, gained 3.6%
over
the $24,257,189
($23.10 per
share) reported on June 30, and

.On

:!:

Third

$12.17

DISTRIBUTORS GROUP, INC.
Street, N.w York 5, N. Y.

from

objectives of this Fund
possible long-term
capital and
income growth for its
shareholders.

spend¬

forms

business

chines

Bycyrus-

Cement.
*

Investment

Prospectus

Electric Illuminating and General

are

City

tries, Emerson Electric Manufac¬

Erie

A Common Stock Investment Fund

re¬

from

and develop¬
ment." Mr. Morgan added, "They

include

reduced,
in
Borg-Warner,
Electronics, Eastern Indus¬

were

Per

research

for

Un¬

pany

additi0ns

are

totaled

Fund
[»

Western

and

acquisitions

;

Over the

Portland

■

Corp.

that

support
business

and

Government

ing

represented

Affiliated

Addr«»_

increased

include:

cr afters.

namics

OFC

Investment

fields

technical

ceiving

companies

Mail this

Associates

30 tota|ed
$31,535,076 and net asset value per
share was $10.77. This compares
with $32,527,296 and $12.30 a year
earlier. Major investment changes
during the quarter ended Sept. 30

advertisement.

80 Pine

rian

eliminated

Nam»_

Raytheon, Siemens & Halske, Va-

ports net assets at Sept

com¬

quality.

Gas

Line); and insurance (Gov¬
ernment Employees Life).

Xerox, International Business Ma¬
chines
and
Olivetti
&
Co.);
chemicals (American Potash, and
Hagan); specialty metals
(Har¬
ier. From July 31 to Oct. 31 the
fund /increased holdings of Aero¬ vey Aluminum) and electronics,
communication,
instrumentation
jet General, Ampex, Elliott Auto¬
mation
Ltd.,
General
Electric, and controls (Collins Radio,
//Litton Industries, Microwave As¬ Loral Electronics, Sanders Asso¬
Instruments
and
sociates, Packard-Bell Electronics, ciates, • Texas

ion.

stocks

their invest¬

Alberta

Mexico,

New

Trunk

puts, nfet assets at Oct. 31 at $32,377,675' and $7.26 a share, against
$29,416,986 and $7.31 a year earl¬

tion

selected for

business

Electronics

Blue Ridge Mutual Fund, Inc. re-

sible growth

through

•

larger industry invest¬

were

,1-'"
;

'Php TriinnQ T?0"nrrH~
^
H ^
b

the nine months ended Oct. 31 net

session.

equipment,
chemicals, drugs, electrical equip¬
ment and, electronics, insurance,
oil arid gas, and public utilities.

reminders;

his week: Better the carping of
the-critics than the inquest of the

e™.

event,

investments

and

state-

Stock

Investors

year,

held

tries. The

these

I^dge reduced, holdings in
£nc ^ Hocking Glass, Deere &

policy and
appointment of di-

In any

BOOKLET-PROSPECTUS

fiscal

by the Commission.
provisions imposing
over

At the

notes.

and Sheraton);
(H. W. Lay
and
United
Biscuit); household
products
(Westminster
Paper);
specialty drugs (Norwich Pharmacal); educational and recrea¬
tional
activities
(Allied
Radio,
Chicago
Musical; Instrument,
Polaroid, and American Broad¬
casting - Paramount); market re¬
search
(A. C. Nielsen); special
merchandising
techniques
and
consumer
products (Avon Prod¬
ucts, L'Aiglon Apparel, Hudson
Vitamin, Papercraft and Scott &
Fetzer); growth utilities (Arkan¬
sas- Louisiana Gas, Public Service
foods

ments

the NAIC,

investment

restrictions

in¬

principal increases

"The fund also increased its in¬

can
Motors, Chance Vought AirCraft, Garrett Corp. and Motorola,
'

controversial
to

controls

rectors.

serv¬

stock

vestment in the expanding science

New

Securities
two

These

new

(American News

convenience

Brake

It contained most

Comimssion.

the

Fund's

Your

Chemical, Kendall, H. I. Street Group, has acquired the
Thompson
Fiber
Glass,- United assets of Hall Investment Co., a
Aircraft
and
Westinghouse Air $1,000,000 private investment com¬

Investment

include

THE PARKER CORPORATION

200 Berkeley Street, Boston, Mass.

shaw

which would

the

common

dustries,: Allied Paper, American and Sp.erry Rand.
*
*
*
Export Lines,
American
Water
Works, Consolidated Electronics i
Broad
Street Investing
Corp.,
Industries, Continental Can, Har- the diversified fund in the Broad

before his group during

session

Oct. 31 had 96.58%

preferred

short term

inciuded the addition of ACF In-- turing,

Secun-

this occasion he was

reporting briefly about
came

ices.

167

critical attention.
v
As one fund manager remarked

of 20 years ago.

conveniences, and

companies representing 25. indus¬

of the amendments recommended

investment dealer.

.59%

rban^ affab-t

investment

the

com¬

stocks,
stocks, and
convertible bonds and

1.06%

important questions for the

Some

been, as Senator Williams readily
admits,
"a
healthy growth,
a.
growth which has been attuned to
the
expansion of our economy,
and a growth which has been dii-ectly related to the climate of
our times." He gives much of the
credit for the new day m this fteld
•to the Investment Company Act

have

current income.

A prospectus on each fund is

course

Company

leisure

time and the desire of our people

or cnange anairs

companies — pyrathree years from

mere

which We know today."
'

personal

^ufn^the S to conTrol

firms-large-

assets of investment

of its securities in

"That whether they come, from the Big
growth was
fantastic and un- Store or Capitol Hill, can be irkhealthy and—as subsequent events some of fund leaders.
But they
indicated—unreal. Many of these may as well face the fact theirs is
pre-1929
investment
companies a $17.5 billion industry with riearwere not, of course, the managely 5 million shareholder accounts
ment - type investment company arid as such, is bound to attract

^ INFORMATION

The fund

book

share. This

per

with 37 cents paid during
the preceding year. Dollar amount
paid out totaled $15,825,904, com¬
pared with $11,023,119 in 1959.

pares

Fund

$700 million to $7 billion.
As
the
Senator
said:

MUTUAL FUND

charge.

increase

vestments and

its

the

tional shares without sales

Exchange's

Stock

Funston.

The

companies had a

investment

Act

come

take

the

Williams, Jr.

that

mided in

CROUP

and re¬
porting into question as he was
alluding to the dealer- salesman
field. The Senator then proceeded

not

seemed

PORTLAND,

distribution

income,

months include consumer services

bringing

re¬

called

to The Financial Chronicle)

broader

made in these areas in the last 12

New

The

the past fis¬
stated: "The
expanding consumer market has
been stimulated by the rise and

Share value at the close of the

Invest ment

Companies..

With May & Co.

are

ment program during
cal year, Mr. Morgan

year was $15,32 exclusive of the
question whether
year-end distribution of capital
fundmen. should
be
concerned
gains which amounted to 20 cents
about this problem to a greater
per share. Including this distribu¬
extent than they now .are.
/'V/y\-;:
tion, ythe value of the, shares at
The second area of discussion
-thd year end was equivalent to
he raised is so-calied "shareholder
$15.52, compared with $16.53 on
education."
The
Senator
won¬
Oct. 31, 1959.
dered whether shareholders un¬
Dividends paid during the year
derstand
the
partnership
they from net investment income to¬
enter or the risks they take. Here
taled 41 cents

re¬

Fairbanks

trade

serves,

92%

He raised the

health.. The

195,518 from

high of

$40,542,059 oil Oct. 31, 1959.
Discussing the fund's invest¬

for

^rpwth does not always translate directly?"

reinvesting their divi¬
dends and capital gains in addi¬

firm.

a new

regularly

capital into small business; have
they made new equity financing
possible, either. directly or irt-

has

Chicago in¬

He also

outstanding

a year ago. More than
the
Fund's
shareholders

'•!;

The postwar growth of the funds
been so phenomenal that we

A. C. Allyn &
&
Co.,
Inc.,
m e n

160,380

is President of

vest

rose

$43,763,674, compared to net assets

end. Number of shareholders also

Chah>

banking

report

431

man.

the preceding

annual

climbed to 41,654,796 from 33,851,at the
previous fiscal year

•

announcement by

the

year,,

stated.

Cum-

mipgs,

at the close of

fiscal

I**/ -LN xJ

Number

tors of Consolidated Foods Corp.,

according to

jLJL

851

TPTT\TD^

MTTTTT A T

Douelas Casey has been elected
J. Douglas Casev has been elected
a member of the Board of Direc¬

Thursday^ December 1,1960

assets

totaledi

Wolverine
a

Insurance

majority-controlled

interest.

Channing's earnings for the 1960
period were equal to 95 cents per
share (including 25 Cents per
from the insurance

companies) on^

Volume 192

Number 6008

1,168,246 common shares outstand¬
ing, as against $1.04 per share on

1,113,496

outstanding

The Commercial and Financial Chronicle

all

electronic
stocks,
American
Telephone & Telegraph.

Channing is an operating and
holding company, with financial,

ampenfabrieken,

Channing and its financial
sion

subsidiaries

sale

and

investment

mutual

United

whole¬

sponsor,

serve

advisors
the

States

divi¬

funds

and

Canada.

Aggregate
net
assets
of
these
funds at Oct. 31, were
$280,636,100.
Another subsidiary, King Merritt
&

Co.,

Inc., retails
through an

sales force

dustrial
the

division

Nice

fund
international

Ball

The

men.

in¬

comprised

Bearing

Co.

Philadelphia.

bigness is

million

and

BY JOHN

Energy Fund puts that stock
in the category of generating ap¬
paratus. Interestingly enough, the

recently

sold

and

off

3,000

tion

that Midwest manufacturing com¬

retaining 6,000.

pany,

Energy Fund also recently elim¬
from its portfolio Cutler-

seem

Hammer, Itek Corp. and Peoples

far

The

mere

superior

investment

big place where
good little fellow can, and often
does, beat a good big one. This
one

All

suffer interim

old cliche is

evoked

reading
of the fifth annual
report of the
relatively small Energy Fund, Inc.,
which

first

offered

its

the public in October of 1955.

Distribution ! of

without

sales

commissionor

Energy Fund
New York

made

organization, sales
loading
charge.

is managed

the

Stock

Exchange house
Ralph. E. Samuel & Co., which

receives
1 %

quarterly fee of

of the average net asset value
fund.
The
house retains

the

"Ob¬

pays

the

thereafter

and

the

1958,

1959

and

30,

From

...

less

the

than

Sept.

latest

million

the

nest

in
egg

has grown to $12,225,000 and the
original 70 shareholders have been
replaced by
6,650
shareholders.

Dividends

from

vestment
each

income

from

year

cents and

from

ranged
cents to 24

holdings

cents

1959..

have

1958

have
to

-v
Well, what has the imagina-"
tively named Energy Fund looked

for to make the shareholder's stake

grow? Basically, it has sought out
the energy industries—the familiar

electric, oil/natural gas and hydro
The newer sources, such

power.

nuclear

for

good

there

energy,

come

deal of attention and
study of the pos¬

much

sibilities

the

solar

and

hydro¬

$12,225,000 of assets

were

rate

report.

bonds

latest

those liens

were

corpo¬

And

convertible

to stock.

The

biggest stake of all, toting
nearly 36% of the whole,

the

$4,330,496 worth of equi¬
ties* in the fields of control, trans¬

was

mission

and

PHILADELPHIA, Pal

A. Bruce

—

Brower has been appointed Exec¬
utive Vice-President of Welling¬
ton

Company
charge of national
b

will

and

measurement

Welch,

Farrington, AmLitton and Texas Instruments.

The second largest category em¬

smacks

energv,

too, although it

of value than vogue.

Lighting & Power,
Philadelphia Electric, Florida
Power & Light and that daddy of
Houston

also

out-of-town

been

the

for

some

Bought

Bruce

included

Brower

Into

was

charge

others

who

but

there

also

obligations

;

will

The indications

only

looking for but

the

' In

wise

income

maturity

added

tant

terri¬

live

now

cate that

that

are

est

those

stock

common

that

well

would

likely to get

they
longthat will

(issues)

with

ists

the

passage

maturities
with

will
ease

•''

.•

addition, it appears
opinion is growing

would

though
that dis¬

1630

not

too

improve
the

this

cases

ernment
the

and

only

distant, futrn^

the fact that these bonds

that

discount,

capital

the

Also,

are

which

appreciation

lowered after the turn of the New
Year.

Inv. Diversified

Names Bradford
MINNEAPOLIS, Minn.
K.

Bradford

which

This
association

tive

ness

sell¬

means
can

announcement

the

nual

the

young

ac-i

men

municipal bond busi¬
held its third an-,

meeting

Oct.

University Club,
The
following : officers

there

short-term

are

Gov¬

are

reinvested

being sold

common

not

stocks

Treasury

long-term

filiated

elected

for

seems,

however,
into

Investors
Divers if i ed

corpor a

Michigan Corp.

common

Investors

Building.
They are In¬
vestors

Investors
lective
Harold

Bradford

xnvestors Var¬

Group Canadian Fund.

Chicago Analysts to Hear
CHICAGO,

111.

—

ters, Inc. will be guest speaker at
luncheon meeting of the In¬

the

vestment Analysts Society of
cago

held

Dec.

than

these

is still

Braun,

The

club

its

issues

the

into

Walston

with J.

stocks.

Wisconsin

Co.,

Ave.

Inc.,

P. Lewis &

was

Co.

offer to sell

nor a

solicitation of

offer to buy

any

of these

made only by the Offering Circular.

100,000 Shares

Sulray Inc.
(A New York corporation)

Seeber

COMMON STOCK

17,

and

their

will

annual

wives

are

held

(Par Value $.10 per Share)

Co,--

OFFERING PRICE: $3.00 PER

it will

the

The

home

Martin

Copies of the Offering Circular
other

engaging in

J. A. Winston & Co.,

securities business from offices at
West

City.

dealers

may

be obtained from the

undersigned and from such
this State.

lawfully offer these securities in

Lagunoff Opens

Marvin Lagunoff is
425

Christmas

invited.

of J. Thomas Martin,
Co., Bloomfield Hills.

announced

57th

Street, New York,
■

•

r .■

■

Chi¬
the

(Special to The Financial Chronicle)

party,
Friday evening,
at 7 o'clock.
Members

Dec.

party

Bosworth

has

fourth

Inc.

MILWAUKEE,
Wis. — Samuel
Ostach
has
joined the staff of

Kelly, Kenower, MacArthur & Co
Publicity Chairman—Terry N.

hold

With Walston & Co.

and

Hicks,

Director—Jerome

Leonard

Goldenson, President of American
Broadcasting - Paramount
Thea¬

November 28, 1960

Director—Robert

Se¬

Fund,

iable Payment Fund and Investors

NEW ISSUE

Manley, Bennett 8c Co.
Social

Mu¬

tual, Investors
Fund,

Stock

the

term

Governments

from

The offering is

Treasurer—H. Montgomery Sny¬

der, John Nuveen & Co.
Secretary-—Donald
G.
Blyth & Co., Inc.

Int ed,

data

though

as
near

substantial

movement

1961:

af¬

with

Midland Hotel.

available

the

From

were

mu¬

tual funds

the

five

another

bonds.

is neither

securities.

in Detroit,

and

director

the

offer when

proceeds

Harold
elected

President

among

securities

also

been

has

■

DETROIT, Mich.—The Basis Club
an

sur¬

market special¬
prime bank rate were

Basis Club Names

New Officers

not

some money

buy¬

trend,

selected

but

price-

long-term

Locust Street.

ing

future
tone

Government

the

Services,

•

contrast

middle-term

na¬

city,

prise

Advices indi¬

Treasury undertakes

interest rate which is expected in

that

economy,

and

increase

the

Treasury issues

which

also

discount

defensive

are still being
equities into the short¬

the

exchanges

quarters

offices

the

increase

Government

concerned.

Philadelphia and make his head¬
Wellington

becausfe

short-term

term

movement

the

likely

"forward refunding" operation. In

the

tory.
Brower

higher

fu¬
con¬

With the demand for credit not

■

Going

Treasuries

certain

making their

are

rate.

swaps

the

time.

dis¬

midwest

foreseeable

appear to

Money

interest in

securities

bonds,

obligations

tional

the

either

Stock

made from

term

placed in
charge of Wellington's Pittsburgh
office, and in 1957 was named
the

the

with

"major"
"minor" forward refunding.
'■*

are

Vice-President

sistent

being
made
largely in obligations which could

are

for

ture, would not

being made by the
banks have resulted in

ers

not

tion

reinvestments

The

The easy

policy which is in opera¬
now, and is quite likely to

money

are

Strength

these bonds give some institutions

1951

gations.'

since

Mr.

that

are

ones

have

initial commitments in these obli¬

ac-

for

minute

will

evident

far

are

Wellington

tribution

last

and

intermediate

mentioned

the

few

are

ing to their positions in the afore¬

distribution of

Fund

but, nonetheless, there

is reported that cer¬
tain institutions are not only add¬

Brower

quite
which

amounts.

an¬

been

market

help the international

banks

process

switches

these

of 1990 and the 3V2s of 1998, ac¬
cording to ladyices, are being ac¬
quired by institutions in modest

o n

Presi¬

Mr.

tiv

Accounting for nearly 29% of the
portfolio, it contains such standbys
as
Cleveland Electric Illuminat¬
ing,

smaller

refunding" bonds,
namely, the 3V2s of 1980, the 3y2s

dent.

has

the

The "advance

Fund,

was

cocktail

are

Collins Radio,

phasizes

The

have

Of Expected Lower Rates

„

and

Equity

Bonds

Long

lingt

such non-income producing issues

pex,

advices,
had
these
exchanges
completed some time ago.

Central

increased

about

Common

in
\

into

come

in order to

the
be

position of the dollar.

hind these commitments.

distri-

tio

Nulf,

large

such names as
AMP,
Varian and Loral Elec¬
tronics (all newly acquired) and
Here

energy.

the

center banks, according to

will

here

President—John R. Taylor, First

Only-.$40,500 of Energy Fund's

even

the last

case

prices. An expected change in
monetary policy is evidently be¬

';V".

fields.

gen

have

Most

years.

the

Brower Exec. V.-P.

general

the
."

$1.03 in

few

money

making

There

run

this

was

the

in¬

payouts from net profits

sales

investment

volume than

being termed as fairly sizable
commitments at satisfactory

1935.

■

incepticn,

end

the

V--;-.

$is.76

$19.65

closeout
(

year

Government

attributed

opinion.

considerably smaller

are

year,

climbed

$18.51

year.

fiscal

the

reached

1960,

assets

1956

distant
be

can

same

interest

now

country

$14.10

most

bonds

declines.

antici¬

evidence to
the effect that these portfolio ex¬
changes which are being made

which

nounced

the

and have been able to make what

Joseph

under

there

they have

slipped

obligations

institutions,

Wellington Names

the

these

that

still

completed before the end of 1960.

at the outset amounted to $950,000
and the value of each of the
79,200

outstanding (adjusted for
a 10-for-l split last
year) was $12.
Value per share rose to $14.33 by

district

better institutional

Well i ngt o n

Total net assets of Energy Fund

financial

pated monetary policies. In addi¬
tion, it seems as though the slight¬

dedicated—is to

are

substantially
market's showing.

Fund

and

purchase of Government bonds
because,.,with price - weakness,

better

administrative

chores

appears

though tax switches are
being worked out by some

that

rumors

rate

continue

Changes Minor

Even

other

interme¬

securities

the

Portfolio

it has been

On the

purchase

time, does not detract
from the appeal which the "for¬
ward
refunding" 3V2s have for
specific buyers of these securities.

appeals to be more than
passing fancy in the course which
some buyers have adopted in the

objective

Wei

advertising and promotion.

be¬

obtained in

months

advisers, handles managerial and
for

market

still

are

year.

quotations
of
will
improve

hope for—and to this

can

the

ters

stock market
down, our per share value
declines; we cannot be 'in' stocks
when they go up, and 'out' of them
when the

sec¬

have picked up a bit,
largely re¬
flecting the belief in some quar¬

concerned."

adds:

funds

large

this

diate-term

Samuel, President of
Energy Fund,
admits: that the
company's new fiscal year started
was

Government

that

to be

times

hand,

Donald C.

discouraging note

the

Bank

the short-term

ing put to work in these obliga¬
tions, but the demand does not

inated

the

indicates

Gas Light & Coke.

higher Bank rate to defend the

pound Sterling when it was on
the defensive is the prime reason
for

The action of

Energy Fund

viously, when the

buff knows,

CHIPPENDALE, JR:

only other issue in that group is
Allis-Chalmers

Cut Probable

about

that the fact that the British used
a

talk

an
upward re¬
vision in the discount rate appears
to be only just that. It is believed

GOVERNMENTS

year.

Humanly enough, he

no assurance of

community is

had

goes

fund

every

performance.

the stock market

Big Brains
As

which

quarter at the end of the fiscal

"on

Small Fund With

worth

market
a

mutual

2,500

Prime Rate

The

Europe's N. V. Philips' Gloeil-

Higher Discount Rate Unlikely;

Our Reporter on

Biggest single investment of all

1959.

insurance and industrial divisions.

(2193)

Netherlands Securities Company, Inc.

210 East
formerly

(2194)

The Commercial and Financial Chronicle

The First National Bank of Pleas

NEWS ABOUT

a-sHS Economic Outlook Implies
Higher Interest Rate Trend

anton, Kan., with

$50,000 has converted

bank under the title of

BANKS AND BANKERS

State

Bank

Branches

New

•

New

•

Offices, etc.

anton, Kan., effective

Revised Capitalizations

•

The First

Pleasanton,

jfc

Consolidations

tjc

Pleas-

of Nov. 14.

Presidents,

New York, N. Y. has

Brook National Bank, New

head

the

been named

trusts

promoted

Vice-President

the

Meadow

York.

Mr.

and

On Nov.
11, the merger of the
Lincoln Bank and Trust Company,

Continued from

The

settlement,

stock

Ky.,

with

common

steel

careful

$2,000,000 into The First analysis, seemed less dangerous
National
Bank
of
Louisville, to stability than was first thought.
Louisville,
Ky., with common Hope for self-discipline and some
stock
of
$5,000,000, took effect, economic statesmanship
on
the
They merged under the title of part of labor leaders seemed to
the First National Lincoln Bank of swell,
whether justified or not.

And particularly, encouragement
regarding the outlook for the value
of the dollar was taken from President Eisenhower's Budget Message,
in
January
1960,
showed the fruits of his

which

strong
stand for fiscal sanity in the 1959

session of Congress. In that Message the President estimated - a
effective
Nov.
small budget surplus for the fiscal
President in 1958.
He has been den
City, N. Y., according to an
shares outstanding—35,000
associated with the trust depart¬
shares, year ending in mid-1960 and proannouncement by Frederick Hainpar value $10).
jected a surplus of about $4 billion
ment throughout his banking ca¬
Vice-President

1953.

named

was

Vice-

feld, Jr., President.

reer.

be located at

with

bankers will be the
of

the bank's main of¬

Brokers

responsibility

administration.

Division, it has been an¬
George G. Dean, Vice-President
by
John
J.
McCloy, has been
transferred to the bank's

nounced

Chairman
rectors

in Garden City for a period
time, following which he will
be assigned to a post in branch

investment

Investment Bankers and

new

the

The

Board

Chase

Bank, New York.

Di¬

division,

Main

Manhattan

reporting

new

John -B.

'
*

the

nounced.

Business

New

Y.,

York

vise

Cisler

Inter¬

New

stock

dividend

1961

the

000,000.

number

authorize

amendment

the

will

Division, headed
Secretary Kenneth

Needham

Farm-

Manager of

and

bank,

service

Nov. 27.

on
*

Investment

the

Howgate

Cashier

Na¬

recently by Albert C.
Simmonds, Jr., Chairman.
Mr.

the

Woolley will have full responsi¬
bility for the over-all supervision
the

Investment

Counsel

New

Kingston,

Huguenot

York

New

National

York,

National

and

Bank

New Paltz, New
Paltz, New York
will consolidate under the title of

an¬

nounced

State

Bank,

Bank

of New York, New York, was

State

New

Bank.. The

York

effective

pected to be Dec. 31.

De¬

National

date

ex¬

Department

W h i t b

named

Director

for

beck
the

will

Volkert

and

the

Vice-President,

Economic Re¬

bank;

head

Investment

Mr.

new

Whit-

section

Division

will devote its entire time to

nomic research.

which
eco¬

♦

■

Charles

Sherwood
Munson, Jr.,
has been elected a Director of the
Grace

National

Bank

New

A clrarter has

National

to the

Marshall

completed 25
pf this bank.

Y.,

Traverse

City, Mich.

Its

years

has

just

Trustee

Weed, President, has
and

Trustees

Garvin
the

capital.

It is

Traverse

conversion

First-Peoples
erse

State

City, Mich.,

Bank,

and

the

Trav¬

effective

of Nov. 14.

The

East

an¬

American

National

Bank

Bank, Arlington, Iowa,

effective Nov. 8,
*

stock

chants

Topeka,

Kan.,
capital

Brooklyn

Norman B. Tengstrom and Roy W.

000,000
Nov. 16.

to.

Bank

has

the

Mer¬

Topeka,
increased its

stock

$2,250,000,.

from

$2,-

effective

(Number of shares out¬

standing—90,000 shares,

Kessler, formerly -Assistant, Vice-, $25)._

National

Cupertino,.

Cupertino,

its title to the
National Bank, Cupertino, effective Nov. 15.

the

16.

in .business,

the

year.

interest

rates

VV UUU"lVlUbdJ.L/
n

caPital

and

not

our

par

value

1959
foreigners, including
foreign central banks, were

most

generally

attempt

Nov.

were

them

the

proceeds from the sale will be ad^
to the corporation's principal subsidiary, Wood-Mosaic Invanced

dustries, Inc., for use as working
capital to finance sales to its for-

because for

number

one

after

holding

vestment

levels

at peak
there

have

mained relatively high.
our

re¬

Thus in¬

market

money

has. become progressively less at¬
a substantial amount

tractive and

of funds has moved to credit

abroad. Some

which

received

mar¬

central

banks,
as
such

dollars,

shifted, have elected
keep them largely invested in

our

were

market.

Others, how-,
long-standing
policy or for other reasons, have
chosen to take gold in full or in
part.
Since mid-year our gold
money

because

ever,

has

'of

declined

dollars,

;

1*4

over

v ^

Cautious Credit Ease

gold outflow has retarded

credit

this

ease

Recently it

the

Federal

trying

terest

cash

produce

has

easy

been

money

short-term

in¬

example,

the

For

Reserve

and

almost

Reserve

rates.

and

summer

seems

affecting

Federal

has

vault

used

reductions

member

bank reserve requirements as a
major supplement to open market
operations to supply reserve funds

of reasons,

nation

markets. But in 1960
market rates have de¬
Activity abroad, however,

without

differing some of them over the
years, we have not had an
operating international money and
capital market. Since the last war,

however,

return

money

clined.

satisfactory

our

to give

other money
our

$500,000

such

compared with that obtainable in

fall.

credit

80,000 ed without much, if any, reference
shares of Wood-Mosaic Corp. class to the effects of that
policy on
A common stock, $1 par
value, at our
international
position.
We
a price
of $10 per share.
; have
been fully free to do this

Approximately

their

the Federal Reserve in its pursuit

must

leave

country because

explore
lay down

before

content

funds in this

This

Podesta & Co. and over the months ahead. For about
Moore &
Co., Inc. the last 30 years monetary policy
underwriting
group. in this country has been conduct-

offered

increased.

year.

velopment that

than offset it. For¬

eign dollar holdings have steadily

billion

major de-

guide-lines for money and

that

aid have

credit

this

markets

There has been another

common &01CI

military purposes and for foreign

stock

the

imports,
large outlays abroad for

our

funds

only unusual'feature in

Cruttenden,
Berwyn T.

but

kets

and

surplus

merchandise exports over

By that time well over half of the
drop that we have had so far in

ment

had

have

interest rates

yields had already ocA charter has been received by curred.
Those who waited for
the
Tri-Cities
National
Bank, such time-tested signals to buy
Pasco, Pasco, Wash. Its President bonds missed a good part of the
.

world

of the

1960 has been no excep¬

been

payments

past decade

and

second, quarter

new

position.

supply dollar

rest

the

market

First

Valley

banks.

the

This
for

need

chases

has

down

cut

open-market

pur¬

Treasury securities, al¬

though

huge Reserve Bank pur¬
chases have nonetheless been re¬

an-

eign subsidiaries. The balance will

other in the free world has, so to
working capi- speak, pulled up its socks and
tal of the corporation and may be
put its economy and financial afused to temporarily reduce short- fairs in some kind of order. These

quired to offset other factors af¬

be used to increase

term bank loans.

specialize

New

.1-

corporation,

founded

which

York

the

was

1883

manufacture

Its.;principal

expanded
elude

offices

and

: over

the

years

in*

broad range of hardwood

products,

including

manufacture

hardwood

nations

have

realigned

the

fecting

franc,

therefore,

other

quantities

both

domestic

and

plywood,

veneers

and

veneer

will

pany

have also inadvertently
relative positions of

the

currencies by some ill-addevelopments in our econ-

We have, for

omy.

ceded

excessive

debt;
debt; 8,893 shares 4% cumulative preferred stock, $100 par
value; 111,611 shares class A comstock, $1

par

496 shares class B

value; and 284,common

stock,

value.

demands

ac-

economically absurd support
program
for agricultural prices,
an

weakening our competitive position in world markets in
a
number of our key export inthereby

dustries and commodities.
whatever
able

XSpeciaJ to The Financial Chronicle)

most profitable

CRUZ, Calif.—Walter G.

credit

flow

Merrill is engaging in a securities
business from offices at 1008 Pa¬

cific Avenue..

Federal

funds are now
seek their
employment in the

freely to

markets

tions

But for

reason,

W. G. Merrill Opens
SANTA

example,

$1,001,417 of long organized
labor
for
wage
in$1,076,178
of
short creases and we have continued

term

par

other

Unfortu-

be:

term

nately,
heiped
vised

Giving effect to the current offering, capitalization of the com-

result
have

this

ap¬

among

readily

widely
of

banks and

moved

been'

thousands

smaller

market.

they have not
into the
money

Although

the

Federal

Reserve has maintained

picture
*

statistical

substantial

reserve

ease, Federal funds have gener¬
ally been trading at or near the

discount

rate.

The/;average

bank -has'/hot

city

been flushJ. ..(with' 1
currencies have become prized in ;
money for many days at a time,;
the world. To a considerable ex-,
Bank / /lending-, . and
investing,

tary and economic aid.

imported hardwood logs, lumber,

reserves.

reserves

scattered

competitive ; in
world
markets,
built up their currency reserves,
and relaxed gradually their for-

Swiss

proach to supplying reserves, ex¬
cess

change values of their currencies,
put their budgets in shape, gotten
costs1 of
production -and
prices

the

bank

Partly

ex--

lumber,veneers, tent, of course, * this has
been
veneer faces and laminated
block,; achieved with massive help from
strip and parquetry flooring, as our
expenditures abroad for millWlell as purchase aind sale of large

mon

dividend,

common

Drew

and

Sara-

*aces-

state bank under the title
Arling¬
ton State

Savings Bank/ New York.
*

Com¬

W. Reed Chapin and the
Cashier,
David B. Pearce, and will have a
total of $696,428.50 in
surplus and

nounced the election of Leland D.

Trantum

City,

the

Trust

President will

Louis E.

-V

Arlington, Iowa, with capital stock
Bank, of
$25,000, was converted into a
announces
that

Covert

First National Bank of

toga

tion.

the

most

the year

has

about-face
in
Federal
Reserve
policy. These changes did not dervelop to amount to anything until

;

The

balances
for

our

balance

in 1957, because of

slackening

they

did

manufacturing facilities arel now mer controls over the flow of
located at Louisville, < Ky.-Oper-v funds to and from other nations.
t ations of the company have been
In addition to
the dollar and

Savings
H.

about,

basic

Our

for

financial

not

willing to lend.

Director¬

been issued

Young, President of

Flatbush

Brooklyn,
Mr.

pany

Bank 'and

the

election

■

York.

Mr. Crawford

1922.

the

e c

has -announced

Raymond W.

parquetry hardwood flooring, was
reincorporated
in
Kentucky in

Hammell, : Vice-President, was Robert O. Driver
named head of the Security Re¬
ate of the bank.

come

Banking Company, Newark, N. J.,

ment.

time

outstanding —1,146,600
shares, par value $5).
%
r
!

The

Essex

same

and in the amount of funds
were

partment, Security Research De¬ Mr. Robert G.
Cowan, President
partment, and Trading Depart¬ of the National Newark. &
At the

(Number

headed

of John

•

The

14.

implications

has been such

dividend,

stock

Nov.

offices,

years

Assistant

Larch-

Mamaroneck

The election

appointment of Samuel H.
Woolley, Vice-President, as Chief
of

effective

WTr\r\rI

Company's

The

Officer

$5,733,000,

Department.

Trust

with the

charter

has

Nov.

tional

Calif.,

credit markets

early this year, then, came about
largely as a result of a shift in the
attitudes
of
nonbank
investors

Seaberg, and the Cashier market swing this year,
G. Allen, the bank has
a
total of $350,000 in surplus afuLv" International Credit Market :
capital.
The date of-effect was;-,. But the advance-guard move-

annual

Hills,

Beverly

The turn in the

Beverly

Robert

compelted

necessary

bank's

D. P.

Bank of Westchester, White
meeting Jan. 18.
N. Y., is announced by
The dividend also is subject to ap¬ Plains,
proval of the State Superintendent Ralph T. Tyner, Jr., Chairman,
and Harold J.
of Banks.
Marshall, President.
the

Bank

increased from $3,822,000 to

mont

$45,000,000 to $50,-

Stockholders

been

County

5,000,000 and the capital of

the bank from

asked

and. the

Carl C. Miller, regional VicePresident
in
charge
of
The

of shares outstanding from 4,500,000 to

Instal¬

Finance

the Instalment Loan

for

of record

increase

will

National

Hills,

their

interest rates

present fiscal year.

our

replaces Mr. Dean

the close of business Jan. 31, 1961.

This

super¬

the

held, payable Feb. 28,

stockholders

capital stock of the

common

City

for

ingdale, Assistant Vice-President,

Bank,

one

Calif, has changed

respon¬

will

Department

nine

The

Kolator at the South Freeport Of¬

York, N. Y. have declared

each

new

Dean

Assistant

Edmund

Hanover

an¬

stock dividend,
16.
(Number of

last

international

fice.

Nov.

The

his

activities

Loan

Marine

Chemical

by Chairman Harold H. Helm.
Trustees

take

will

Mr.

the

ment

Trust Company,

announced

was

sibilities,

In addition

Walker L.

Advisory Board

national
Bank
N.

election

The

where

Hainfeld, Jr./ Presiden t,

Bridgwood, Executive Vice-Presi¬
dent.

Office

charge of the bank's new business
development > program, Frederick

John E. Beebe,

Vice-President, will head the

$350,000, by

Saf will

Mr.

fice

Relationships

Long Island Trust Company, Gar¬

since

strike

Tengstrom, who joined the
estates, estate planning and tax bank in 1955, will be in charge of
divisions of the trust department. the new Queens division of the
He succeeds Ernest R. Keiter, who bank's branch administration de¬ Louisville, with capital stock of
divided
into
will retire from the bank at the partment.
70,000
Mr.
Kessler,
who $7,000,000,
end of February.
joined the bank in 1947, will re¬ shares of common stock of the par
value of $100 each.
Mr.
Norton,
who joined the main in the Cashier's department
*
*
*
Chase National Bank in 1928, was in the West Hempstead office.
The First National Bank in Love*
*
*
appointed an Assistant Personal
land, Colo, has increased its comTrust Officer in 1944 and was pro¬ Harold L. Saf of
Wantagh has
mon
capital stock from $250,000
moted to Assistant Vice-President been elected a
personal

threat.

in
business
activity
spring have had to be
taken with an increasing eye to
slackening

page 1

present

Louisville,
Donald C. Norton, Vice-President
of The
Chase
Manhattan Bank,

were

Thursday, December 1, 1960

...

the

free

Credit-easing

the

major

therefore, has not had the forceddraft treatment that it

was

given

in, say, 1958. This is reflected/in
the behavior of the money supply,
which has been about maintained
at

the

level

contraction
ter

has

been

last

spring.

fall

and

other periods of credit

has

been

The
win¬

arrested, but unlike

little

there

ease

monetary

expan¬

sion.

A Cautious Approach in Bank
Investments

Bank
been

investing

different

activities

too, as
periods

compared
of

credit

periods

the

been

aggressive

ernment

to-ten-year

sumably

have

another

with
ease.

way

previous
such

banks have
buyers of Gov¬

past,

securities

the

three-

maturity range, pre¬
a
defensive move to

the

maintain income

to* combat

the

easy money

measures

Reserve

na¬

world.

was

over a

time when

expected to

pre-

Volume 192

vail.

Number 6008

The Commercial and Financial Chronicle

....

This

was true in 1954, for be
justified in pressing further for
and again in 1958, In credit ease and some monetary
those periods of economic slack
expansion. Events abroad, howshort-term yields quickly became
ever, may greatly limit the extern
unattractive
and
by
extending to which such a program can be
maturities a few years, the inpushed. Recent reductions in cen-

could obtain

vestor

substantial

bank

tral

in France,

rates

pick-up in yield. In 1954, for ex- land, and West
ample, the yield spread was about make it feasible
1%% from

eight

year out to

one

years.

seven

further

ease

to
our

it tempting to sell such issues ahd
invest their money in the shortterm

about

tainly

may

be disposed

of only at very substantial losses,
It was
painfully discovered by

many

banks

our

of 1%% for

not

that

year

pickwas

adequate compensation for
the loss of eight or ten points on
a

later sale.
In

1960

cide

creased

all

their

not

■

Treasury
have

securities

three

over

years.

themselves

set

maturing in policy stance. The Federal ReThey rather-serve will certainly not lightly
to the task risk taking any action that might

they have been only
successful, even so.
market, bank inter-

est in intermediate-term Treasury
securities : is.
negligible. *•. What

:U:

Reserve

policy

■"

„

r-:>

-■**''

vjj

■'* '■

record pace.

the conviction that

thinking
about
\:rr?

about

credit

are

when

ease.;

used
we

.talk

Intermediate-

term Treasury yields

of 3%

•

yestors

h'U.;<iP

;

long-term

corporate

and

municipal bonds are exeep*
tionally. attractive by comparison
with those prevailing in* earlier
periodsof:, softening business activity vand monetary ...and .credit

f
t

they
the

either

will be

the
a

what.
On

the
be

because

ahead

there

demand for credit that

'
"
'
Hazards in Fed's Purchases
;

Of Long Maturities

It is true that the Federal Re-

should it choose to do So,
could add significantly to the demand for longer-term issues by
serve,

,'i

saw

2
■

/'.

•

I960.
Amos Treat & Co., Inc. is man¬

ager

a group

that is underwrit¬

ing the offering.
Net proceeds from the financing

Will initially be added to the gen¬
eral Corporate funds of the com¬
pany and subsequently applied to
furnishing two new retail dis¬
count centers, one in Brooklyn,

Y., the other in New Bruns¬
wick, N. J. The balance of the
proceeds will be used for general
corporate purposes.
The debentures will be convert¬
ible

slackening in the
loans by busU
nesses
will operate modestly in
that, direction, but the extent of
any decline in short-term yields
must necessarily be tempered by
demand

for

any

shortage of in¬

Mortgage bor¬
home buyers, to be
to be slackening some¬

other

common

principal
stock

slide off somewhat further. They
also

for

the

Federal

Reserve

Davega

ninety days after the effec¬
tive date of the offering at an ini¬
tial conversion price; of $8 per
share. The debentures will also be

from

reactions

and

redeemable

re¬

year.

If business activity does

tion

1960

retail sales' of the

serious,
stagnation.

prolonged period of
The beginnings of a
recovery are typically seen sometime in 1961. It is certainly possible to argue for a less happy
economic prognosis than this but,
considering the extent of the rolling readjustment already made,
this popular view seems a reason-

S PG
SPG—Symbol of Suburban Propane Gas Corporation Common Stjock-r-made its appearance on

pioneer in the LP-Gas
largest independent distributor .of propane -. * ■. manufactures and sells gas appliances and LPrGas equipment
; has paid 59, consecutive quarterly dh^dends 'dating back to«
first year of corporate existence.
- ,
r \ :!'^!'7! r
/

;*tbe New York Stock* Exchange November 28. - Suburban Propane is a

industry

Nine Months Earnings

able

starting

p o

int

for

purposes.

Fed

1960

Net Income

1959

Sept. 30

$1,676,439

$1,305,560

Common*—

$1.11

.b5

TWELVE MOS. ENDED Sept. 30

$2,499,471

$2,075,110

$1168

1.38

NINE MONTHS ENDED

Earnings

buy

Will Exercise

Under such

Caution

business assump-

tion, the Federal Reserve would

of the Treasury to
put such securities in the hands of
the public.
More important, however, would
be the effect of such a program
on the functioning of our capital
markets. If the Federal Reserve
were to drive intermediate- and
long-term yields lower by buying
vious

per

efforts

Earnings
♦After
average

credit

hold,

to buy more, intermediate

Share Common*-of

dividends

on,

number of common shares

WHppany, If. J.'
(The

pipeline

wheels"

preferred

shares and bdsed on

outstanding.

GAS CORPORATION

York Office

General Offices

generally, many investors
now be in doubt as to

may

whether they should continue to

per

deduction

SUBURBAN PROPANE

such securities and not by easing
who

-I,,

company

mid- increased to $6,779,118, compared
a few months ago.
It is doubtful
1961, as it is supposed to accord¬ to $5,322,922 for the like period
that there will be any cash sur¬
ing to most economic seers, in¬ ending June 30, 1959.
plus for the current! fiscal year terest
Upon completion of the current
rates
will
probably be
and there could be a deficit. The
higher a year from now than they financing, outstanding capitaliza¬
next fiscal year will in all proba¬
are today.
;
7
' tion of the company will consist of
bility show a deficit. The bigger
$1,-637,351 of long-term debt; 369,the new spending programs, of
An address by Mr. Youngdahl before
600 shares of common stock; 47,course, the more the deficit—but the First National Bank of Chicago Con¬ 800 shares of 5% preferred stock,
ference
of
Bank
Correspondents, Chi¬
a $5
billion deficit seems almost
and 12,500 common stock purchase
cago, 111., Nov. 28, 1960.
inevitable with no new spending
warrants.
schemes,
unless taxes are in¬
;E. E. Stevens Opens
creased.
The
prospect
of
this
7
R. M. Gharlson Opens
.(Special to The Financial Chronicle) ;
/
budget change,, as it permeates .our
financial, markets, will certainly FORT MYERS, Fla. — Ernest E. AURORA, Colo.—Robert M.Charlbe something of a brake on future Stevens is engaging in a securities son is engaging in, a securities
from V Offices
from. offices
at
1260
at; 1601 business
improvement in our capital mar¬ business
..';!"'..
kets.
'!
' -v|;! !. '7 Llewellyn Drive.
:
;
I Havana Street.

indeed begin to improve by

think, however, that back these or comparable securithe decline will not develop into ties, thereby undoing all the preseem

■

amounts

at optional redemp¬
prices ranging from 105% to
101 %, plus accrued interest.
Davega
presently operates
a
chain of twenty ^six stores in the
Metropolitan New York area, for
the retail sale of radios, phono¬
graphs, television sets, accessories,
ness regarding the bond market. refrigerators
and "washers, ana
Interest rates, to be
sure, may various other electric appliances,};
work somewhat lower. But pros¬ sporting
goods, sports
apparel,
pects for Treasury deficit financ¬ cameras, photographic equipment
ing on a large scale by mid-1961 and supplies, and other similar
loom sufficiently large to offset items., Operations of the company
most, if not all, of the effects on and its predecessors date back
interest rates of any likely cur¬ more than 75 years. For the four
tailment
of
private borrowing months period ended June 30,

hand, however,
position will not
next
favorable as was believed

the

Treasury's

their

into

bank

!!!!

com¬
as

Probably, for these .reasons: there
,

large

!|t-!!:;•!!!;;!"' ;l!

»••'

record

buying directly in those maturity
sectors. Such action has* Of course,

facets I to be considered before
seems?' tb- be a rather widespread plunging into Such a programexpectation*! that interest rates First, the Treasury has long layyill declinev significantly .duping bored to 5e.ll to the public securithe next -half-year or SOi-Is:, this ties *of intermediate- and longexpectation; 1 i k e ty ^ to, prove term- maturity. Progress has been
•'
correct?.ill'-- painfully slow. As recently as: last
7 To begin-an- evaluation of tjie month'an offering of six years in
interest^rate^dutiddkroqui^fi^ maturity received only a $1 bila point of view nbout the business
lion acceptance. ; In September a
outlook. I suppose most, students huge effort was made to refund
pf the, business situationr--business in advance about $3 l/z billion of
men
and economists alike—now bonds into the truly long-term
feel that economic activity will sector. It would be all to easy
;; *

they wish to be prepared to meet,
;

remain

outlets.

sure, seems

because they expect

period

preclude

rowing

feel as fully committed in
longer-term market as they
or

possible that

been proposed from several quareaser'--;'/ ./7-rs"-ters-'There are,'however, several'

•

ill

securities

term

destined

vestment

short-term rather than in longer-

and

3%-.% likewise vseem: high* and the
yields presently available to in-

much reduced. Bankers, and
other investors prefer at present
to keep these marginal funds in

that

discount rate of 3%

what

enough for several months ahead

very

to 3% and.
not

seem

period of prolonged busislump in which the demand
all kinds of credit will be

for

lated

headed

we are

rates.

considerations.
! v
><
|
months* it would not seem logical
to anticipate a further dramatic
Higher Interest Rates in Prospect
drop in yields, assuming we are
not headed for a business collapse, ; •; On balance, therefore* if we ac¬
In
the
market ' for
long-term cept the typical, reasonably hope¬
ful business prognosis, I can find
credit,
demands
by
businesses
and by states and municipalities little basis for unqualified bullish¬

wish to be

are

Interest Rate Prospects

investors do not come to

fairly high levels, despite the
sharp decline from the peak rates
prevailing
early
in
the
year,
Short-term yields of around 2Va

*!!!•!!

By the standards of the past 30
years, interest rates' still remain

ness

been at

into

market, however, corporate borrowing has been very large and
municipal and state borrowing has

r777|;

long

held

The offering also
in the market last year what an carries an additional subscription
inflationary psychology can do to privilege in the event all of the
long-term yields, and early this rights are not exercised. Rights to
year we also saw what call hap¬ subscribe will expire at 3:30 P. M^
New York City time, on Dec. 14,
pen when that inflationary out¬
interest

Looking ahead for the next few international

insistent. In the long-term capital

i:7;; -ll

munici¬

mortgage

tual repayment of old loans. Demand for mortgage credit is less

-!:!!

the

the intermediate- or
long-term sectors of the credit
market;
;.■!!! !!-r! -v.,
■*
directly

„

■"-j,

markets

availability of funds at

favorable

they wished them to go.

the Federal Reserve to intervene

that

interest, on the basis ' of
$100 principal amount of deben¬

parik money there is for this ma- agency is not prepared to allow
turity area, seems to be directed short-term interest rates to deto the tax-exempt market, |7
dine. Long-term and intermediL'
•
•
;
'V ate-term rates are where they
Current Credit Market Situation
are> and not lower, in large measAnd Background ?
ure because many investors, espe7 At present, the money and capi- cially bankers, who have flexital markets stand about as follows: bility. between
short-term and
There has been some let-up jri the longer-term securities have deheavy demand for bank loans of cided that under present and proearly in the year due largely to spectiye conditions it is preferable
an
easing in business loans for to stay in the short-term market,
carrying inventory. Treasury bor- There is little that can be done
rowing needs are much ; lower by the monetary authorities to;
than last year. Consumer credit change this point of view as long
is increasing less rapidly than it as short-term interest rates are
was, reflecting a heavy contrac- satisfactorily
attractive and as

;r
■v.;!'

Federal

deben¬

crued

is
a
question. If
selling long-term Treas¬
look diminishes and recedes.
ury issues were to buy corporate
and other bonds or mortgages, the
Dramatic shifts in the supply
supply of funds going into those of long-term funds from the usual
areas
would, of course, be en¬ sources of such money do not
larged for the time. But at some seem likely in the near term, as¬
point investors generally would suming nothing happens to shake
distrust the entire long-term cred¬ the confidence of such investors.
it market—a situation that could On the other
hand, unless some¬
put
that
market through the thing happens that creates an im¬
wringer or put the Federal Re¬ portant downward pressure von
serve on pegs again. The reactions
short-term yields, it is not realis¬
to such a development, both here tic to expect much
enlargement in
and abroad, can readily be imag¬ the modest
flow of commercial
ined. I do not, therefore, expect bank
funds
into
intermediatethat there will be an attempt by and
long-term securities.
It is

in-

In the present

subordinated

23, 1960.

circumstances

international
confidence in our financial position. It
would be reasonable! to expect

tures, due Aug. 1, 1975 at a sub¬
scription price of 100%, plus ac¬

management pro¬
gram or a sizable budget deficit
will not strengthen confidence in

Nov.

about

investors

Now on one point I am firmly
convinced — further ease in the
intermediate- and long-term credit markets cannot be created by

which

convertible

debt

stock

yields

concluded

market would perform under such

offered

tures for each. 25 shares of

driven

had

How the corporate and

accelerate the already large outflow of short-term capital,

moderately

Corp.

mon

they

had

pal

strengthen

of rebuilding their portfolios of
short-term Treasury issues, a job

unsound

Stores

holders of its common stock rights
to subscribe for $1,500,000 of 6 Mi %

long-term market, that will help
to lower yields in those areas, at
least for the short run. But an

sustained

soon

low

to buy just

Treasury officials show an intent
to starve the intermediate- and Davega

that the Federal Reserve authori¬

Administration is at

to pursue

sell and not

Davega Stores
Rights Offer

ties

partly committed to some
actions
that
would
hardly

Federal Reserve

the

Treasury debt management, of
must be listed as an un¬
known quantity
in the capital
market outlook. Should the new
course,

the future of the dollar, and such
confidence
is
a
prerequisite to

cautious program, probably holdholdings of ing closely to about its present

have

sector

many investors. This would make
it easier for such investors to de¬

least

the
banks

new

that

make

short-term

Government is now in transition,
and the

longer-

market vulnerable in the minds of

spread is about % %.

could

that

fact

some

allow

In 1958 the spread
1% %. Today the

term securities

yields had been reduced by

The

official buying and not by private
investment decisions would cer¬

markets, particularly early next
year when seasonal forces usually operate in that direction.
Banks later regretted these ma- Unless business
activity drops off
turity extensions, of course. They sharply abroad, however, there
were greatly pressed for funds in
may not be room for a material
the following periods of business further
easing in our money marexpansion
when
intermediate- ket in the next few monthsj Our
also

was

,v\i? ;

area.

term

Eng-

Germany

long-term securities would find

example,

(2195)

20 Exchange Place

i»f i:

£4

The Commercial and Financial Chronicle

(21C6)

will' be

issuer

When the Securities Laws

responsible

held

when it sells its stock to a person

intends

who

does make

and

tain

information

specified

including

ments,
which

must

to each

securities.

of the

purchaser

prospectus

furnished

and

other docu¬

and

exhibits

various

securities may be

basis

fee

Continued from page 3

The

offered after the

sale and leaseback

basis, and our accounting require¬
ments differ somewhat according¬

the

Since

ly.

syndicates

most invariably new
which

with

al¬

are

organizations

taking over properties
substantial
operating his¬
are

Another

popular misconception
mere
passage of time
after receipt of securities estab¬
lishes
a
presumption of invest¬
-

the

that

intent.

ment
of

Thus, the expiration

after purchase has been
upon
as
compelling evi¬

year

relied

dence that the

sales

but

may

tories,

ments of past

Registration Necessary for Real
Estate

Our

note, however, that this does not

Partnerships

records

show

graphically

the increased interest in issues of
this

nature.

the

seven

years

from

1952 to and including 1958,
registration statements cover¬

ing

estate

real

tions

filed,

were

syndicate opera¬
aggregating $83

million. In

1959,19 such statements
filed, aggregating $32 mil¬

were

lion, and in 1960 to Sept. 30, we
had 22 such filings totaling $38
million.
in

have

Some

active

been

these issues and to them much

of
what
I
am
saying will, no
coubt, be quite old hat. Unfor¬
tunately, this familiarity appar¬

ently does not pervade the entire
Professor Berger

bar.

research

some

pointed
Yale

out

of Yale did

the

article

and

matter

the

Journal last

Law

April that
the New York County Clerk's of¬
had

fice

records

substantial

number of real estate partnerships
which were not registered with

though

us,

they obviously should

have been.
Commission

The
scribed
real

has

not

special form for

pre¬

use

estate syndicates in registra¬

tion,

and

Professor

has

Berger

suggested that this omission is not
only

slight

but

imposes

the syndicators
undue
burden

the syndicate promoters and

upon

their attorneys. The form present¬

ly used is

Form S-l which is

our

for

prescribed

commercial

most

industrial
offerings, and I
readily admit that its various in¬
and

structions

at times seem ir¬

may

relevant and mysterious when the

registrant is not engaged in
facturing
to

or own

own

office

less,

selling, but

and manage a hotel

building.

adaptation

manu¬

proposes

Neverthe¬

Form

S-I

has been developed which we be¬

lieve

comports with

the realities

represent
view

change in the dim
notoriously take of esti¬
future earnings. For in¬
a

holding

for six
period of
course, the

any

whatsoever.

time

of time elapsing between
acquisition and resale is one of
the evidentiary facts to be con¬
length

become

familiar to everyone in the indus¬

try

its

and

available
have

possible
into

details

the

doubt

readily

are

uninitiated.

that

translate

would

the

format

useful pur¬
perhaps, to give a

given

such

factors

the

measure

satisfaction

who believe that the

quires

those

industry

re¬

now

have

some

tion about the issuer.
determination

some

stance

course,

issuer the choice of
or
making
its own
voluntary
disclosure
free
from
Commission scrutiny.

and

portfolio of specu¬
subject to the
vagaries thereof.

part of

avoid

encumbering the books with

and

intricate instructions.

other

series

reasons

which

elaborate

Among

impel

this conclusion is the fact that the

syndicate agreements
to fit

are

tailored

individual Situations with

noteworthy

ingenuity which is
difficult
adequately to describe
within the limits of a rigorous
form.
There are further compli¬
cations of unknown

extent relat¬

ing to the real estate trusts, which
will

deal

with

later

this

discussion.

Form S-l involves the prepara¬
tion of certain financial statements

which, in a real estate syndicate
deal, presents some very substan¬
tial problems.
Generally speak¬
ing, these deals are on either a

set

and

mission

held

exemption
took the

was

the

lo¬

the

3(a) (11)
not available. We

view in 1957 in the

entire

issue

confined

single

state in which
offerees and the

expected to con¬
evasions of
statute and may be expected

the

issuer,
the
purchasers
are resident.
Since the exemption
is designed to cover only securi¬

countenance

tinue

the

Moreover, the Commis¬

cannot

as¬

York, the Com¬

that

was

same

principal

of income

source

cated outside New

eventually

syndicate

the

deal

great

pay

attention

promoter who e^ges across the
margin of Section 3(a) (11).
I have assumed in this presen¬

narrow

involved

amount

the

that

tation
in the

syndicate operations is very
substantial, as most of them are.
If

than

exemptions author¬

Section*/3.(b)' of the

under

ized

less

involves

matter

the

$300,000, the
1933 Act are

available, and filings

be made under Regulation^.

may

ties distributions which

non-resident investors.
The

tion

which

trusts

vestment

have

re¬

fragility

ist

is made

small

and
knowledgeable
the exemption will not ex¬

group,

the

initial

ment but

are

purchasers have

operating

conduits

statutory underwriters and

any

distribution by them is subject to
the registration requirements. Well
of this problem, attorneys
developed the practice of
obtaining written representations

aware

have

that purchasers have acquired se¬
curities solely for investment and
not

with

view

resale.

How¬

neither the Commission

ever,

the

courts

have

been

nor

impressed

by the so-called investment letter,
and
fect

ritualistic recital to this ef¬

not

conclusive

particularly persuasive

nor

even

exemption often used
by syndicators is the so-called in¬
trastate
exemption provided by
Section 3(a) (11) of the Act. This
section

ments

exempts from the regis¬
and
prospectus require¬
"any security which is a
persons

single state

resident within

territory where the

or,

corporation,

incorpo¬

doing business with¬
in, such state or territory." At the

principal place of business is the
situs of the real property which
it manages.
We recently had a
case

where

had

been

limited

organized

partnership
under

New

issuer

law
in

but

had

Arizona.

its

principal

proposed

distributes securities "at its
peril."

dents without benefit of registra¬
tion.- In defense of its reliance on

Whatever may

Section

be the excuse,

3 (a)

(11),

the

syndicate

their

taxation

before

shareholders

Since

not provide all the
a part¬

may

company

taxes.

investment

advantages of taxation as

nership, the degree to which the
exemption are particularly Im¬
amendment will affect the present
portant since the great bulk of
pattern
of syndication, v remains
unregistered real estate syndica¬
somewhat doubtful. Some of these
tions
have
purported
to
rely
tax problems were, discussed in an
thereon.
We have reason to be¬

lieve, as Professor Berger pointed
out, that in some cases, at least,
this reliance has been hopelessly

that the

and

misplaced

distribu¬

date

We have not to
to deploy our

inclined

been

themselves
investor.
of

than

the

average

In fact, this very

these

themselves

purchasers

ability
protect

co^ld conceivably re¬
appalling loss to an in¬
cautious promoter.
I suggest, for
example, that the issuer pause and
reflect upon the civil liabilities to
which the syndicate managers ex¬
pose themselves in dealing with
substantial and sophisticated in¬
vestors on the basis of anything
sult in

article in the Commercial and Fi¬
nancial Chronicle for Oct. 6,

and I
bar

1960,

that the real estate

sure

generally will give them close

study.i- The only point I want to
make is that the amendment doss
affect

not

laws.

enforcement

limited

offer limited partnership interests
in New York to New York resi¬

repeatedly warned that

great care.

manpower
against the real estate syndicates,
outset, you should be warned that thinking it more fruitful to center
the Commission takes the position upon the boilerrooms and other
that the exemption requires that dispensers of fraudulent securities.
the
issuer conduct its principal
In this connection, it is relevant
business within the state of issue. to note that most syndicates re¬
It has been urged that the location quire
a
fairly heavy minimum
of
the
syndicate's home office, participation and appeal to a fair¬
where financial and business rec¬ ly tax conscious, fairly high tax
ords
are
maintained, meets the bracket and fairly sophisticated
"doing business" test, regardless group. I do not mean to suggest
of the location of the real estate. that these people are not entitled
This is not the Commission's point to the protection of the securities
of view. In the case of real estate laws, but I do suggest that they
syndicates, we believe that the are better able to take care of
rated by and

courts

have

with

Section 3(a) (11).

in,

asset

Commission

be handled

The limitations of the intrastate

resident and doing business with¬

York

the

ex¬

tions have not been exempt under

the

and

exemption

issuer of such security is a person

availability of the exemption. The

must

Exemption
Another

tration

3(a) (11)

tremely restricted in its scope and

Intra-State

Constitutes

What

only to

Underwriters
Even where the offering

1933,

another

since the syndicate's

securities

lative

part of an issue offered and sold

Warns Purchasers Who Are

for a distribution to the general
and unless public. Initial purchasers who thus
especially cogent circum¬ acquire securities with a view to
is asserted, I would like to
their resale fall into the category

Act

yet

A contrary

would,

give each
registering

17 forms prescribed under the Se¬

curities

sion

which had been leased
long-term basis.
However,

the
ex¬

formal benediction of its not taken the securities for invest¬

idiosyncrasies. We

emption.

intrastate

of the intrastate cently been the subject of an
exemption are -particularly un¬ amendment to the Internal Rev¬
fering, the character of the secu¬ normal
Code.
In
substance,
this
sized. We may suppose that it was enue
There
has
been' some
effort
rity concerned and especially the
amendment
provides much
the
relationship between the offerees made to insure compliance under predicated on the image of a local
same
tax treatment for qualified
and the issuer. In the case of SEC Section 4(1)
by restricting trans¬ enterprise selling to local people
which
are
substantially
v.
Ralston Purina
because
of
geopraphical trusts,
Co., the Su¬ ferability for a period of time. who,
proximity, would be in a position limited to investments in real es¬
preme Court restricted the Section This really does not meet the is¬
tate and real estate mortgages, ;as
4(1)
exemption to an
offering sue. The test of the section is the to understand and obtain knowl¬
is provided for "regulated invest¬
made only to those people who intent of the
purchaser who can edge about the business. I am not
ment companies." Thus, such real
have ready access to the type of intend
to
sell
his
participation going to discuss whether or not
estate investment trusts may un¬
information
which
they
might now or at the expiration of a year this image is, now, or ever has
otherwise gather from a registra¬ from now, but in either case has been entirely realistic.
What is der certain circumstances be al¬
tion statement.- It must also be taken with an intent to sell.
important to know is that the Sec¬ lowed to distribute earnings to
size, type and manner of the of¬

any very

except,

pose

real estate,

the

•

form, and we are, in fact,
giving this some thought. I am
personally unable to see how this
serve

limitations

particu¬

observance

would

strict

syndication, provides full dis¬ remembered that the exemption
to the public and offers does not
come into existence sim¬
really serious problem to the
ply because the offerees are in
syndicate's lawyers. This special¬ fact furnished adequate informa¬
now

lar

sidered, and the longer the period
of retention the more cogent the

has

strict compliance with

the securities laws and in

■

closure

format

York, including receipt of

less than

are essen¬
This technique has been employed
tially local in nature, the phrase in some cases, but I do not believe
"sold
only to persons resident" they are very common.
cannot be interpreted as limited
Under all of these
exemptive
argument that the resale is not at
based
on
operating
economies
to the initial sales by the issuer provisions, serious problems
variance with the original com¬
ari^e
which the property managers ex¬
if
any
purchasers fall into the when the transaction is being fi¬
mitment.
'Vv
pect to introduce.
Nor has our
nanced only in part by the syndi¬
category of statutory underwriters.
The parties also frequently point
position weakened with regard to
It was very early held that the cate operation.
These integration
the use of appraisals in balance to a subsequent change of circum¬
securities must be found only in questions
take
all
conceivable
stance which is alleged to make
sheets or text either, for that mat¬
the hands of residents who have forms, and I do not have time to
ter.
We
have
found
occasions a present intent to sell consistent
purchased for investment and not do more than mention them. If
where the
use
of figures
other with a prior intent to buy for with a view to resale to non-resi¬
they are present, they must be
than cost has been justified, but investment. Whether a particular
dents. I may say that we consider given
very
serious attention, in
change in circumstance was not
they have been very rare, indeed.
"residence" as being equivalent to order to make sure that they do
really within the contemplation of
"domicile," and that we do not not vitiate the protection other¬
What Is Exempt From
the purchaser must, of course, be
condone
sales
to
transients
or
wise afforded to the issuer uncfer
Registration
determined in the light of all the
other persons domiciled elsewhere. the law. - •
Generally speak¬
The Securities Act exempts from available facts.
Any resales to • non-residents,
Finally, I think I should remind
registration certain securities and ing, the Commission has tried to
however few, render the exemp¬ promoters that none ofthe ex¬
certain transactions in securities. administer the securities laws with
tion of Section 3(a) (11) unavail¬ emptive provisions
of the.«1933
One relevant statutory exemption understanding
and
to
keep
in
able for the entire offering.
The Act protect the issuer, or the syn¬
that few men receive the
encompasses transactions not in¬ mind
fact that representations of resi¬ dicate managers from the liabili¬
volving any public offering—the gift of prophecy and that an in¬
dence and agreements not to. sell ties
inherent
in
the
anti-fraud
so-called private offering exemp¬ vestment intent does not infer an
to hold
forever.
On the to non-residents have been care¬ provisions of Sections <12 arid 17
tion provided by the second clause intent
fully gatr.ered should not be relied of the Act. The sale by fraudulent
of Section 4(1) of the Act.
The other hand, it would be unrealistic
not to
determination of what constitutes for us
recognize that a upon as establishing the - avail¬ devices, if interstate communica¬
ability of the exemption.
Once tion facilities are involved, of any
a public
offering is a question of colorable change of circumstance
anyone
is unlawful,
fact and necessitates a considera¬ may readily be adduced in almost more, the issuer distributes securi¬ security to
ties at his own peril, and he may and
subjects the seller ;to both
tion
of a
multitude of circum¬ every instance.
Accordingly, the
well find that a devious-minded civil and criminal liability.
>
stances. While a limitation on the Commission scrutinizes the con¬
number of offerees may be help¬ text in which securities were is¬ purchaser has destroyed, the., is¬ Ad
The New Tax Treatment
suer's
exemption and subjected
ful, it will not suffice to insure sued and asks for some objective
him to a heavy liability by quick¬
I think that, as a final topic, I
that a public offering is not in¬ evidence that they were not ac¬
should discuss the real estate in¬
volved.
Consideration must also quired simply as a "good deal" ly disposing of the securities to

mates of

stance, we do not generally permit
a modification of historical results

ized

in New

conducted

were

original investment
case
of a California corporation
representation has been satisfied.
which
was
to
buy a hotel in
However, there is no statutory
basis for concluding that a pur¬ Nevada, and were upheld in court.
Section 3(a) (11)
requires that
chaser may shed his status as an

require income state¬
operations, together
not be consummated until it has
with projections which will show
become effective.
underwriter by
how the syndicate operation will
months, a year,
affect
such
earnings. You will
filed

statement

pointed out that all busi¬

transactions

ness

Thursday, December 1, I960

rental payments from the Arizona

public distribution thereof.

Apply to Realty Syndicates

manager

...

the

securities

Federal

In the first

place, depending

the actual or proposed nature
portfolio and the nature of
the securities it issues, a real es¬
tate-investment trust may dcome

upon

of its

within the definition of
ment company as

tion

invest¬

set forth in Sec¬

3(a) of the Investment Com¬

Act of 1940.
However, an
exception from the requirements
pany

1940 Act is available under

of the

Section

3(c)(6)
business

whose

for
is

"purchasing

quiring mortgages
on

company

primarily that
otherwise ac¬
or

other

liens

and interests in real estate"

long as it is not "engaged in the
business

issuing

face-amount

certificates of the instalment type

periodic payment plan certifi¬

cates."

is
as

will admit
rather

true

the

1 cf.

that

obscure

many

Investment
Mr.

John

"Realty
Investment
Launching."

this provision

analysis,
provisions

upon

Company

Williamson's

Trusts

Act.

article,

Poised

for

Number 6008

Volume 192

However,

assets would be

determining

that

crucial factor in

the

trust

invested

has

leases

come

estate.

which invests in the securities is¬
sued by

another trust (as is per¬
by the amendment) or in

mitted

securities of

any

company

en¬

other

securities might

ceivably not
exception.

qualify

the

",'*v

•

Among other things, the amend¬
ment
to
the
Internal
Revenue
Code

the trust's securities must be bene¬

tained in the Securities Act would
be available would depend on the
and

case.

However, it should be noted

circumstances

each

that the intrastate

exemption pro¬
vided by Section 3(a) (11) is not
available

investment

com¬

registered or required to be
registered under the Investment

pany

Company
sion

Act,

will

not

be troubled

the problems

cases

Commis¬

the

and

such

presented

intrastate
offerings..' Where,
however, the trust is designed so
as not to require registration un¬
,

der

the

intrastate

1940

Act, the problem of
exemption will be
the same problem which confronts
the ordinary real estate syndicate.
In

also

Common Sold
P.

Brooks

Co.

plications. Fumaric acid is

Common Sold

or¬

ganic acid used in making certain
polyester resins, polyurethane

Inc. and Lee

Higginson Corp. jointly managed
an underwriting group
which of¬
fered on Nov. 29 450,000 shares of

Golkin, Bomback & Co. and asso¬
ciates

resins, fumarated rosins, fumarate
oleo

and

esters

concluding this discussion, I

One

■

primarily engaged

it? capac¬
ity for the production of fumaric

acid; to complete construction of
citric

new

cover

acid

start-up

and

plant

and

for

Act

company

business of "purchasing

the

otherwise

pre-operating

certain

other

^exception
contained
in
Section
3(c)(6)(C), the character of the trust's
assets must be considered.
In this respect,

the

raised where a real
exclusively
interests in real estate or mortgages
or
liens secured by real estate.
A trust,
however, which also invested to a substan¬
tial extent in other real estate investment
trusts (as is permitted by the amendment)
or in companies engaged in
the real estate'
business or in other securities
might not
be

trust invested

investment

estate

would

question

fee

turing Co. Inc.

Form Equity

acid

chemicals
field

and

Citric acid is the most

stock at

selling

stockholders.

sells burglar and fire alarm

fire alarm bells for industrial use,

fices

Schimmel

119

other components utilized

certain

alarm

fire

complete
home

Plan¬

Street

fire

and two
systems for

systems

alarm

use.

the

For

ning Co. has been formed with of¬

months

seven

ended

July 31, 1960, net sales were $656,666 and net income $129,965. As of

in a securities business.
Philip Melnick is a principal.
engage

15, 1960, outstanding

Oct.

capital¬

451,000 shares
stock and a mortgage

ization consisted of
of common

Mayo & Co. Formed
PHILADELPHIA, Pa.

payable in the amount of $56,085.

&
Co. Incorporated has been formed

organic

research

fermentation

common

The company manufactures

Planning

J.—Equity

PARAMUS,

new

manufacture of citric acid and fu¬

acid

130,500

being sold for the accounts of

are

certain

and for

maric

price of $4 per share. The shares
issued and
outstanding and

2,967,000 shares of common stock.

to expand the company's
research and pilot plant facilities
to
enable pilot-plant and semiand

Nov.

are

expenses;

plant production of itaconic

offered

shares of Alarm Device Manufac¬

resinous

and
equip¬
ment.
The company makes local
burglar - alarm systems and the
major components utilized in sub¬
stantially all types of such alarm
Upon completion of the current
and
security systems. The com¬
financing, outstanding capitaliza¬
pany's'plant in Brooklyn, N. Y.
tion of the company will consist
also manufactures a full line of
of $2,870,000 of sundry debt and

the company to expand

Alarm Device

ceuticals and has mahy other ap¬

products,
working capital for inven¬
acquiring mortgages and
other liens on
tory and receivables related to op¬
and interests in real estate" and not "en¬
gaged
in
the business
of issuing face-- eration of the citric acid plant and
amount certificates of the installment type
the new fumaric acid facility.
or
periodic payment plan certificates."
The company is engaged in the
Thus, in
determining the applicability
1940

owned

by 100 Or ,more
persons.
In view of this provi¬
sion, it appears unlikely that the
scope
of the offering could be
limited in such a way as to make
available the so-called private of¬
fering exemption which I have
mentioned.
Whether
previously
any of the other exemptions con¬

may

exception from the require¬
ments of the Act which may be applicable
to a real estate investment trust is that
contained
in
Section
3(c)(6)(C) of
the

that, in order to
qualify for special tax treatment,

facts

and

issues,

required.

requires

ficially

the

upon

portfolio

con¬

under

may

nature of
its investment
the nature of the securities
come within the
definition
of an investment company as contained in
Section 3(a)
of the Investment Company
Act
of
1940,
in
which event, absent an
available exemption or exception, registra¬
tion of the trust under that Act would be
ing

gaged in the real estate business
or

before
any
sales
such jurisdictional means.

and soft drinks; and it is
extensively used in pharma¬

foods

Bzura Chemical

paints.
The company has been engaged in
any
Bzura Chemical Co. Inc. common the manufacture of fumaric acid,
tained in Sections 3 and 4 would be avail¬
able would depend on the facts
and cir¬ stock at a
price of $10.50 per share. through its wholly-owned subsid¬
cumstances of each case.
In this regard it
Of the 450,000 shares offered, iary, Bzura, Inc., at a plant in
should be noted that the exemption from
the
registration of securities under
the 350,000 shares are being sold for Keyport, N. J. A second plant for
Securities Act of 1933 provided by Section
the company and 100,000 shares making
fumaric acid has been
3(a) (11) of that Act for certain intrastate
for the accounts of certain selling built at Fieldsboro, N. J., adjacent
offerings is not available to an investment
stockholders.
to the citric acid plant, and start¬
company registered or required to be regis¬
tered under the Investment Company Act
Net proceeds from the sale of up operations and test runs are
of 1940.
its 350,000 shares will be used by now in progress.
A real estate investment trust,
depend¬

liens

effective

be¬

Whether
of the exemptions from Section 5 con¬

secured by real
On the other hand, a trust

gages

must

statement

such

that

and

made by

in mort¬

mails

exclusively in

in real estate

given to Section 5
requires that, unless

means

real estate investment

which

securities may be made by any
transportation or communication
interstate commerce or by use of the

ing

exception.

ute where

consid¬
of

Thus,

offering.

public

should

Act

exemption is available, a registration state¬
ment must be filed before a public offer¬

applicability of
Thus, in the ab¬
sence
of the issue of the special
types of securities referred to in
the statute, the Commission would
raise no question under this stat¬
the

(2197)

The Commercial and Financial Chronicle

eration

trust's

the

involving

clear

reasonably

character

the

that

the

—

Mayo

Du Kane Securities

with offices at 1411 Walnut Street

chemistry.

engage

Louis

widely used

Mayo

a securities business.
Jr. is a principal of

the firm.

organic acid in the manufacture of

Opens

111.—Du Kane becurities, Inc., 63 South La Salle St.,
is engaging in a securities busi¬
AURORA,

ness.

qualify for this exception.
Questions in
this respect can be determined only on the
basis of a consideration of the
facts and
in each case.

circumstances

other

The

considered

question

the availability of the Section
3(c)(6)(C) exemption is the nature of the
securities
issued
by
the trust.
A faceamount certificate of the installment type
determining

defined

1940

security which repre¬
obligation on the part of its issuer

pay

HOW TO SELL SECURITIES

investment

certificate*

"any

contract,'or
sents

Investment Company Act

the

in
as

Why You Need-

other

stated sum or sums at a fixed or
date
or
dates
more
than

By JOHN DUTTON

determinable

twenty-four months after the date of issu¬
ance,
in consideration of the payment of
periodic installments of
amount

minable

stated or deter¬

periodic

pay¬

just issued., [See full text below—
Ed.] However, if the advantages

certificate is defined as "(A)
any
certificate,
investment contract,
or
other
security providing
for a series of
periodic payments by the holder, and rep¬
resenting an undivided interest in certain
specified securities or in a unit or fund of
securities purchased wholly or partly with
the proceeds
of such payments, and (B)
any
security the issuer of which is also
issuing securities of the character described
in Clause (A) and the holder of which has
substantially the same rights and privileges
as
those which the holder of securities of
the character described in Clause (A) have

(In Your Business)

upon

might mention that
ceived

number

have

re¬

inquiries as
to the applicability of the securi¬
a

ties laws to real estate investment
trusts.1
will

I hope that these inquiries

answered

by this discus¬

sion and by a release on the sub¬

ject

which

this

such
I

the

form

Commission

organization

are

to encourage its wide use,
sure that there will be novel

problems which
to

has

the 1933 Act

will be called

principally

answer,

under

sult

Our

always stands ready to

staff

the 1940 Act.

con¬

these

lems.

Given

between

the

Commission

cooperation

industry
which

and

the

have

en¬

sure

completing the periodic payments for
such securities provide."
should
also be
given to
whether the broker-dealer registration and

will

you

increase

—

available exclusively from

and

Exchange Act of 1934

the

real estate investment

Copies of the amendment to the
Code
may
be
obtained

You'll

learn about

ments,

Obtaining

The initial sales

The final sale

The various

client list

Printing Office,

Government

Internal

for ten
of Docu¬

Superintendent

the

from

cents

Washington 25, D. C.

approach

By the Commission,

1960.

18,

ORVAL L.

DUBOIS,

Secretary.

Co.,

categories of investors

These

defined

are

—

and

and their

you're

told

by Mr. Gadsby before the

York City, Nov.
.

selling

trust and those

Revenue

Negbaur

COMMISSION

investment

proven

securities.

sell its

who

♦An address

Washington 25, D. C.

full of practical and

weekly columns in The Commercial and Financial Chronicle.

how to

by H. K.
firm, New

Columbia University Club given

EXCHANGE

are

is designed to

—

proven

promotional ideas. John Dutton drew it from the best of his popular

accounts.

business through modern,

your

selling techniques. Its 25 chapters

are applicable to

ties

become unduly vexatious.
AND

60-page booklet

help

the Securi¬

provisions

regulatory

other

not

SECURITIES

This

Consideration

that

difficulties

estate

plan

which

Nov.

joyed in the past, I
real

other prob¬

any

ment

real estate

develop each of them to their maximum

potential

18, 1960.

Securities Act of 1933

To Be Krieger

Release No. 4298

Partner

Techniques

Investment-Company Act of 1940
Release No. 3140

securities" Exchange
Release No, 6419
Estate

Real

received

the

applicability

laws

real

defined

•

become

amendment

the

This amendment pro¬
same tax treatment

investments

estate

this

investment

real

investment

does not amend
istered

mortgages

"regulated

substantially

are

and

provided

companies,"

for

but

of the statutes admin¬

any

Commission.

trust

estate

may

real

subject

estate

the

of the Federal securities laws,
depending upon the circumstances involved
in
offering
its
securities
for
sale,
the
nature of such securities, and the character

provisions

the

investments.

trust's

The

amendment,

other

among

100

could
the

owners

scope
as

of Section

1933

for

provided
4(1)

owned

of the

num¬

required, it appears

the

exemption

clause

In view

limited

that
so

beneficially

persons.

ber of beneficial

unlikely

must

the

make

the

fices

offering
available

second

are

WASHINGTON, D.

has

an-issuer not

can

vital

help

receipt of

your

you

Your

balance

your

various

sheet items

better salesman and run a

own copy

will be rushed to you

order.

from

of¬

Michigan
Street.
Harold V. Huleguard,

Now Brager and

Company

C.—The firm

of Harry E. Brager & Asso¬

1218

been

of the Securities Act

transactions

this booklet

COMMERCIAL &

Company.

16th

changed

W„

Brager

and

Street,
to

PARK

FINANCIAL CHRONICLE

PLACE, NEW YORK 7, N. Y.

Gentlemen:

ORDER YOUR

Chairman.

ciates,

their

—

attractiveness

—
Mer¬
engaging in

business

President; Walter G. Clinchy,
Vice-President; Thomas F. Butler,
Secretary
and
Treasurer;
and
Frederick
W.
Hornbruch,
Jr.,

name

and

to analyze

use

2330

Officers

can

profitable selling operation.

immediately

things,

requires that, in order to qualify for the
special tax treatment provided, the trust's
securities

securities

you

relative

the

MONICA, Calif.

SANTA

tronics Corporation is
in

In 1001 ways
more

(Special to The Financial Chronicle)

(Public Law 86-779,

substantially the

limited

Mertronics Corp.

—

securities

Henry

Co., 25 Broad Street,
York City, effective Dec. 1.

New

own

Krieger

trusts

investment

recent

partner

inquiries as to
Federal securities

qualified trusts which

real

member of the
Exchange, will

the

September 14, 1960).
for

Trust

Exchange Commission

number

Stock

American
>

Internal Revenue Code

vides

1934

Investment

estate

Act

The Securities and

has

Gerald M. Golkin,

-r....in¬

•

COPY TODAY
PRICES ON

QUANTITY ORDERS

ON REQUEST

enclose $2.

Securities'*

Kindly rnsh

copy

of "How To Sell

I
I

Name...

I
I

Address

I
City.

Zone

State

niSK^rHfiw,.

wh«L>v

/''.

>1 m' tS-'Of

^hi

"'w

,r.'

>1^ .. fw y, f,r yt"Tl®?.?W 1 'TS> W***^„t'"'f^ & ?l t
f
*i',t
i
-i J
<>•
»
<*
t..

■

tiia '*

■

'iL'.Vti

•'• s'i<itil.l<*M iv^t-l'ii

«1

,„....

.' UXi"A .jkji'iiBi'lJ liiW rVW'tfAsM' It' itlWl'SSTlA.r'fY •*•'*'

i.h.4.

W «.'"W'V'w

ttr

-i'-H#.-"

26 *

(2198)

The Commercial and Financial Chronicle.. \

citizen in a free economy who
hopes that it is going to stay that
way, I would like to at least sug¬
gest some criteria, for testing sug¬
gestions which either I, or anyone

else,
Continued from page 5

ciation or actual liberty of con¬
tract, and employers who are or¬

ganized in the corporate
forms

is not

ownership association
substantially burdens and affects
the flow
to

and tends

commerce,

aggravate

recurrent

business

nition

the

unleashed

forces

by the

law

of 25 years ago seem to have made
it constantly harder to find the

by depressing wage framework for developing any
real appreciation of the degree of
purchasing power of
wage earners in industry and by mutuality of interest of all of the
preventing
the
stabilization
of groups which make up a particu¬
competitive wage rates and work¬ lar enterprise. The massive union
ing conditions within and between movements which have emerged
simply do not seem to be compat¬
industries."

competitive wage
which the policy

things
mentioned, would be a
power massive enough to do many
other things as well.
rates,

Sees

Gain

Peaceful

Bargaining

statement

And
wide

has

been,

nation¬

unions emerged and pushed

toward

higher level
of
wages
and benefits and an
ever-widening ambit of bargain¬
ing, and the unrelenting tide of
inflationary pressure has rolled
on

ever

on.

Although 25 years have gone by

the

faith.

good

area

ing

for

legal

ability to find peaceful solu¬
tions to bargaining problems than
we

beginning of the
The major consequence is
problems have become

period.
that

the

were

the

bigger

the power centers which

treat with them have
now

after

stance

enlarged,

faced

are

instance

with

in¬

which

employee and best interests
the employees and em¬
ployer who are joined together as
a competitive unit of
enterprise.
both

earlier observed, the law

apparently set out to change what
its

such

labor's
with

re¬

eventual
the

area

en¬

anti-trust

laws, which it surely does not
want, is just as surely accelerated.
Drawing Up

Balance Sheet

draw

now

kind

of provisional balance sheet
to see what has been accomplished
labor

management

period

area

which

the

law has been in effect?
would

certainly not want to
be heard to say that all develop¬
which

growth

the last

been bad.

have

been

the

out-

collective bargaining
quarter-century have

Unions have stimulated

into paths of more
treatment of the in¬

management
constructive

terests of its employees. And even
where plants or industries are not

organized, the ever-present threat
of organization has served to keep
managements alert to the neces¬

sity of dealing fairly and honestly
with their employees.
But the basic problems which
were

at hand when

period

still

are

began the

with

and,

anything, their peaceful
has

been

made

solution

difficult

time has gone by.

Nearly 60
tice

years

Oliver

ago,

Wendell

Chief Jus¬

Holmes

ob¬

framers

considered

out

of which

between

the

get

his

the

eternal

effort

every

that

and

that

disguised under the
1

conflicts

life is made

the most

services

that
man

can

for

society,

name

italism, to get his services

one

of capfor the

may

made about the last

tury

tered

the

quarter-cen-whereas unions en¬

that

the

period

the

role

mistreated

role of

ing

underdog, in the
the White Knight in Shin¬

Armor

who

could

wrong, they have emerged as tre¬
mendous, established aggregates
of power,

abusing,
power.

power

recognized
well

capable of

great as to stand as a continuing
threat to the economy of the na¬
tion, and political power, great

enough to

held

continu¬

ing threat over the heads of both
parties—which has created a new
image of unions today and which
causes

grave

concern

future of collective

over

the

bargaining.

Certainly, in assisting and toler¬
ating the formation of unions
which

operate

nation-wide

basis,

crossing and disregarding
oompetitjiive lines, the law has

done

little to diminish the causes
of labor disputes. One has the un¬
easy feeling that the concept of
unionism which it has
encouraged
actively depends for its status
upon

the

ultimate

identity
employer and
particular enter¬

employees of a
prise. One has the feeling that the

has
encouraged a kind of
unionism which is more
concerned
with the
progress
of

unions as
such, than with the real progress
of employees as a
part of the com¬
petitive production unit of the

enterprise system with which they
themselves.

have associated

that

this

meanwhile the institution
collective bargaining is

being

of course that

bargaining

employees natural¬
ly aspire to improve their wages
and the security of their
position,
that

tive
in

employers

constantly

fulfillment
the

economy.

naturally

more effec¬

their

competitive

function

enterprise

But it is also true that

neither side

produced—by government de¬

termination

it should

and when
to

how

meet

predetermined growth rate?

can

succeed for

long

we've

like
to

had

we've

some

means

and

strikes

means

had—then
other

"other way?"

inflation

there's

way.

are

fullest

the

sense

productive
world has

I know this—that

going

are

unions

and

that

the

involve

our

departure

from

past

union

wage

and

benefit policies; rather
they
suggest that the problem is mainly
one of
attitudes which might be

unit.

cept

and

compete by
type of planned
economy with which we are com¬
peting—then the effort will not be
resort to the

worth

the

I'm

same

candle—at least

concerned.

far

union

Americans
ested

are

—

American

vitally inter¬

the

survival

ideals

our

freedom—re¬

ligious freedom, economic free¬
dom, political freedom—than I am
in

arguing

over

which nation

policies

got

But what

Recently the podiums of the
country have been flooded with
people who want to make a con¬
structive suggestion.
As a
free

and

solutions

regarding
future collective bargaining prob¬
lems?

It seems to involve the concept
a
union must stay at arm's

length from the employer and, in
fact, cultivate the image that the
employer is the natural enemy of
the

employees

beaten
It

down
to

seems

who

from

going
to try to keep a free
society—
we'd better start trying to solve
our
problems
by
trying
ap¬
proaches

which

the

concept

total

rather

tend

bolster

freedom

—

than

edging closer and
planned economy and
controlled society. Yet the prob¬

closer
a

are

lems which plague the
country as
a
result of major labor disputes
loom

large in
people that

many

the

minds

they

seem

understand

better, and in the

each

other

of their

course

discussions work out

guide¬

some

rather

many

people

there

are

other

some

government-

motivated device designed to sup¬
ply the "answer" for a particular

bargaining dispute.
don't

know

takers
them

such

find

Maybe

Even if

people, the poll

them—and

frightening

these

people

them,

other
and

the

posure

than

they find
numbers.

really think

such suggestions would

them

some

not affect

removing
economy from ex-:

hardships of crip¬

pling strikes.
But

they would be wrong.

For

economy can remain half con¬
trolled and half free for
long. If

wages and

working conditions are
to-be determined by
politicians, in

some

will

bargaining

soon

disputes;

determined

they
in

all

bargaining disputes. If wages and
working
conditions
are
to
be

and

wage

benefit

im¬

of those

excess

any calculation of
productivity, presum¬

improving
to

ments, for

are

peace—firmly on the side
desiring the best of all possible

Union

leaders

have

been

pains to contend that such pro¬
posals involve nothing compulsory,
but
simply the development of
voluntary recommendations — de¬
signed to preserve the best of the
free enterprise system.
One

cannot

but

wonder,

how¬

ever, whether any area of agree¬
ments at summit level could assist
in resolving the problems of

particular

bargaining dispute.
develop a recom¬

there

Could

national

there

without

wage

such

recommended

policy?
thing

national

price policy? Is there implicit
these- suggestions
some

tives,

group
some

the

idea

top- level

that

execu¬

their

infinite

ward

with

wisdom,

come

plans
grams which would tell
some

for¬

and

pro¬

all how

growth of the country should

drawn,
would

then
all

level conferences

are as

then

luxury which I

nation

cannot

afford,

Obviously, this is not what has
to

be—and

both

union

and

man¬

agement leaders know it. There is
much

community

interest

between employers and employees
and their representatives that we

simply cannot let our free society
founder
over
our
inability
to
resolve

move

zeal to find solutions

our

should

differences.

our

But in

not,

the

problems

our

ever

them

carry

judgment,
of making
larger, and try
my

direction

remote

from

ployer

higher

ever

levels, levels which

are

ever

the

respective em¬
employee
relationships

trying to improve.
small group of union
speak for all employee
groups—and surely no small group

Surely

are

can

of industrial

executives, no matter
constituted, could speak for

how

management.

fairly

believe that
that these

agree

the

com¬

and

movement,

going to become
believe this

all
are

inflation

union

secure

leaders

implications

the

union security as thus described is

tributed, and how the impact of
change which inevitably accom¬
panies growth should be administered, here, there, and every¬
these

enterprise to meet the new chal¬
lenges of a competitive world are
the prices which must be
paid for

which

operation

continued

be fostered and planned, how the
of growth should be dis¬

where?

which

deteriorating ability of American

top level
union officers, and perhaps some
group of respected government or
public representatives would, in
group

security

petitive enterprise system.

any

mended

union

completely at odds with

successful

worlds for everyone.

day lies in compulsory arbitration
or

sity to engage in constant enforce¬

ably

fruits

suggest that the answer to
the king-size labor disputes of our

of mutual interests.
It
has seemed to involve union neces¬

dustrial

peace.

who

time.

suggestions for summit
support the illusion that
unions have
meetings,
Presidential
brought about the
advisory
boards, Tripartite councils and the rising standards of living which
like, all sound very statesman¬ are really made possible by im¬
like. They appear to place unions proved productivity. In short, it
firmly on the side of desiring in¬ has seemed to postulate require¬

the

Compulsory Arbitration

the

concept
bargaining settlement must
"victory" for the union,
than an acceptable accom¬

a
a

justifiable
Fallacy of Top Level Conferences

the verge of being
willing to cast
freedom to the wind in return for

How

must

time

involve

modation

Would

Just this: That if

that

get

can

the best economy.
What has all of this to do with

con¬

insecure

long as there are any groups of
employees
anywhere who
may

that

vastly

interested—and believe most

to involve the

seems

that

fixed if only the right kind of
top
level people from both
manage¬
ment and labor could get
together,

These

course

much

compulsory membership for
all employees within a bargaining

growing

competitive pressures on Amer¬
ican business make unavoidable a

constructive,
the

intervention—

government

word

of economy
known?

type
ever

is going to be to turn to

disestablish¬

ment of the last shred of
of interest between

severely criticized. People every¬
where are saying that if
collective

aspire to

gov¬

what should

over

their

It is this power—economic
over
vital
industry — so

somewhat exaggerated state¬
ment in many respects.
It is true

relations—by

produced

manifestation

run

using,

And

argue

and

labor

new

much

are
busy trying to find ways to:
have chosen not to rely upon the
destroy them. Unfortunately, they
services of a union.
are
disinclined to recognize the bargaining

interven¬

this, it
truly succeeded, for certainly the
over
riding observation to be

least possible return."

Now,

ernment control

imbalance of power then running
in favor of employers.
In

law

served that:

"One

tion

government

attitude

seems

provements far in

discretion,

over

hardened

conspiring to present

relations.

tanglement

gospel

are

involve

being accepted as the
bargaining agent of the employees;

and is still the most

maining in management's

ments

and

than

seems

Are

con¬

than

problem for what it is; namely,

going to meet this
competitive
challenge?
going to meet it by more

are

that managements across the land

of the bitterest pitched battle.

the

virtually
which it now

concept

does.

ment

limits,

the

as this is, we are also
being challenged by a totally un¬
friendly nation, whose declared
purpose is to destroy our way of
life—not necessarily by warfare
in the old sense, but by economic

How

limitless

could

this issue if

represent

of
the
problem
falls
on
their
shoulders. So they have been
quite
busy with a counter attack. They
have spread everywhere the

As serious

themselves,

over

Finally,
they know that the primary onus

rently able to do here in America.

kind

atmosphere

which currently prevails.

cur¬

Certainly, the "balance of pow¬
er" concept implicit in the Federal
Law has brought us no closer to

the

tinues

lines for just and harmonious labor

at least some of the areas still

during

are

change

founder

to the satisfaction of human needs

too far toward codetermination of

the

collective

still the most constructive solution

they
are, may lie mainly in law other
than labor law.
If labor pushes

that

areas

unless something is

course

conferences, at any
bargaining

new

even

of the

compulsory bargain¬

can

done

with

hourly
labor costs to challenge the best
many

conferences

the

most businesses.

How

They know also that an aroused
public opinion could turn to this

modern methods and lesser

•

Any
level,

unwise

entire nation all at once, with al¬
most total disregard for the wishes

though of infinitely greater prac¬
tical importance from the stand¬
point of profitable operations of
The

therefore,

able,

are

free

security.

Union Goal Would Kill Enterprise

going to meet it by
showing that a free economy in

to be about as definable
limits of outer space, al¬

the

They know full well that

union

is.

management

society is a necessary prerequisite
for the existence of unions.

developed and brought into
production in modern times and

who

the

and

single labor leader can virtually
interrupt the commerce of the

seem

settlements

foundered

one

the issue of union recognition,
the-second on the issue of

duty to bargain in
The outer limits of

legal

the

commented

the full reach

don't yet know

article'

effeet that the first

Labor unions are as
shy of com¬
pulsory arbitration and other ap¬
proaches
to
controlled
dispute

economy

today

warfare, waged with the intensity

that

since the Wagner Act became law,

our

hews

been

ible with the solution of labor dis¬

stabilization

contracts. The corporate state will
have arrived in short order.;

number of friendly nations, most
of whose plants and facilities have

depressions,

surely,
a
bargaining
putes in terms of the problems of
power great enough to avoid the
the
separate
competitive
units
alleged tendency of employers to
which are the heart of our free
depress wages — a bargaining
enterprise system.
power great enough to accomplish

to* labor contracts peaipe and progress."'Both of these
are removed, then so will be free¬
postwar high-level conference at-;
doms
in respect
to commercial tempts were failures.r A ^recent

is being
entirely
new sense, and that this is a prin¬
cipal fact which is going to color
our industrial relations picture in
the next quarter-century.
Our
economy is being challenged by a

rates and the

Now,

that

challenged

regard for the in¬

proper

terests of the other; but unfortu¬
nately, and here is the real rub,

other

doms in respect

make.

may

dictated/ then prices and,- hence, to establish? "a!,.< broad and
per-/;
profits must be dictated. If freer- manent 'foundation for'-industrial

;

Let's start with the frank recog¬

in the accomplishment of the in¬
terests which motivate it if there

Thursday/December i; i960

top
potentially

Would

Restore Competitive Units

Surely what
is

need to be

trying to find the

means

doing

to place

efforts
dangerous to the maintenance of
to
improve
under¬
a competitive free market society
standing and our efforts at im¬
compulsory arbitration."
proved communication back into
Suggestions
of
this
sort
for the
framework
of
competitive
finding a better way have been units which are the foundation of
our

appearing from time to time over
long span of years. After World

our

War I, a National Industrial Con¬
ference was called by President

face

Wilson to treat with postwar labor
strife. It was requested by him to

certainly not the

formulate principles for

"genuine

enterprise system.

Make
bitter

mistake about

the

potential

years

it—we

some

very

ahead, although it is
desire

man¬

agement that they be that wav. A
great momentum has been, built up

and

lasting cooperation between
capital and labor." And
again,

over the past 25
years; the level of
settlements have been higher than

after

World War II, a Labors-In¬
dustry Conference was called by

can

President Truman. In light of the
threat of post-war industrial tur¬

tion

moil,

built

wanted

this

conference

possibly be accommodated1 in

the future

the pace of competi¬
Restrictions
on

accelerates.

pffiment,

into

operations
our

labor

have
'

been

agreements

Volume 192

Number 6008

Financial Chronicle

The Commercial and

(2199)

during periods when the tolerance

understand that collective bargain-

central issues for future

ing is not like

if unions elect to make them

at whose end

can

the.economy

for such restricgreater than is it now.

tions were
What

in the

hope of
both the
management and employee probcan

peacefully

adjusting to

inherent

lems

this

new

eco-

beautiful rainbow
be found

pot

portant

tionary wage increases

problems—and

fall

out

bound

are

increased

prices;

they are coming to see first hand
the product of foreign labor on our
work
with
union shores. After all, several decades
representatives in any forum that of painful experience can scarcely
lends any hope of producing the be
ignored,
and" thinking
emopportunity for better understand- ployees are coming to question a
ing. It is not an answer to assume lot of things they had taken as
that economic force is the only gospel from their union
leaders
way — and for unions and com- for
a
long time. .Thinking empanies to spend their time between ployees deserve the facts; " they
bargaining sessions working up deserve the opportunity to know
the blasts which they will level of the company's problems, and
at each other as soon as they are how it is trying to meet
them,
next scheduled for a bout in the They deserve the opportunity to
collective bargaining arena., We exercise their identity with their
must hope that something can be company's future in a knowledgeWell,
of
continually

course,

must

gained in the way of understanding—in the way of understanding

able

the ultimate

Not An Anti-Union Act to Give

representatives

Increasing knowledge — widei
understanding of facts — throughout history has tended to reduce

necessity of common
goals as between the parties—from
a
continuing exposure of proper
of the

bargaining
parties to the needs and viewpoints of the other side. We have
tried this kind
of thing in the
steel industry before—and without
.

much

success

again
Some

are

trying

are

little

accomplished.
*'

».■*

'v*'

■

What

■'

•

•P.

•

to be sub-

reason

force.

management

direction

to
to

seem

move

this

strife.

incite

see the extent
which unions will go in trying

discouraging to

the

business

which

anti-union is

are

surely

concession that unionism must be

with^ppngtitytion?].

they have associated them-

deal

tion

of these

and

used

analysis whether
problems
sensibly and with
minimum
strife
is
going to be
determined
by whether
unions
will be willing—or able—to try to
not any

of these

one

be resolved

can

resolution

seek

consistent

manner

interests

them

with

socially

the

best

tempered

free competitive enterprise system.
The Real Task That Lies Ahead

Many

the

are

protestations

union leaders in which they avow

support of

our

system of free

com¬

petitive enterprise.^ Yet for years
they have pursued a course wholly
with

odds

it.

They have built
organizations which enable them
control

labor

tries—and

entire

indus¬

even

competing in¬
dustries. With their industry-wide
organizations, they have advocated
and enforced bargaining programs
which deny the identification of
employees'
interests
with
the
progress
of the enterprise with
which

the

employees

are

current
for

accounts

profit

the

capital in
connection with the proposed ex¬
pansion of operations.
The

located

company,

Varick

200

St., New York, is engaged
offset lithography,

*For the six months ended June

30, 1960, the cobapany had sales of

$1,198,159 and net income of $76,739. Upon completion of the cur¬
rent

financing, outstanding capi¬
will consist of
$243,287
sundry debt, 300,500 shares of

talization
of

stock

common

and

30,000

re¬

stricted stock options.

in commercial
method

printing by
is

color

Borneman

of impressions

from

such

Named

Schroder Rockefeller

lithograph plate and

distinct

methods

commercial

means

offset from

other
printing The appointment of H. F. Borne¬
letterpress and man to the position of Assistant

rotogravure.

The .company is Treasurer of
Schroder, Rockefeller
equipped to handle and perform and Company,
Incorporated, 61
all phases of offset
lithography, Broadway, New York City, was
from
the
photocomposing
and announced by Avery Rockefeller,
preparation of the plates to the President of the
company.
delivery of the printed product.
Mr. Borneman joined the staff
Advertising brochures, pamphlets,
of this investment
banking firm
bills, cards, packaging material
.

and

posters

the

account

company's

for

most

production,

though it has handled
other

al¬

Dec. 1, 1959.

associated

with

was

the

formerly

Treasurer's

variety of Department of the Socony Mobil

types of offset printing.

Oil

Company.

Security Traders Association

asso¬

motivator

payable,

working

ciated. They have denied the role
of

printing

Of Chicago, Inc.

the discipline of profit.

;

organization

sition of companies in the

field. The balance of the proceeds
will be applied toward the reduc¬

—but in the final

of employees as unionbusting. The contention that such
standing

that needs to

the expertise re¬
both sides will increase

growth

every

anti-company. The time is long
since past for unions to be taking
be done. After all, the employees;
refuge behind the hysterical claim
themselves, are, or, ought to be, that
employers
are
trying
to
the heart of any labor organizadestroy the union movement just
tion—just as they are the heart of because they mav indulge in the
But there is

how

any one

effort by
management to improve the under-

characterize

actions

Must

Remember

Management

for

quired

Unfortunately,
however, in this field mere efforts

can

know

intelligently with

strife—to enable

something

stituted

Committee

efforts.; We must live in hope that
little

Facts

forum for these

if that is their desire,

way,
'

our

Research

provides

;

Human

aware

Relations
which

but

—

and we must try again,

—

so..

s, I don't deny that it will be im¬

of gold for the asking; they are
coming to understand that infla-

climate?

nomic

bargaining

privilege

free

speech in trying to have employees

and

denied

the

They

progress.

role

the

have

market

They have been able to
their

pursue
thus far without kill¬

course

ing off all chance for growth in
productivity because in past years,
the

American

had

its

consequences

market

place

has

inflation

tolerance for

and

which

longer there. And unions
faced

with making

ment

in their programs

cies to accord with

now

real adjust¬

is
are

and poli¬
Can

new era.

selves; For too long, managements understand the economic facts of
acted as if they: thought that; a; life from
their standpoint: If unions

they—or will they—make it?

union-represented employee was
just that, with almost all the emphasis on ''union represented" and
very little on the fact that he was

tical in union eyes—and if union

still

really interested in industrial

are

and

peace

this

progress,

attitude

constructive

change

one

actions

the

most

they

could

take.

appeared when

without union objection,
however, American business management
must • proceed
to
redevelop its communications with
its employees.

elected

union

representation, and therefore
real

efforts

meaningful

munication : with
came

any

com-

employees

be-

neglected.

will

admit

that

much

has

appeared to justify such an attitude in the past. It gives management

no comfort to see employees
blindly hit the bricks in support of
demands
which
they
may
not

understand
about.

and

gives

comfort to

not
care
management no
may

hear from

union

some

month to

union leader to

Management Must Proceed
With

employees do not understand
economic
facts
surrounding
the company in which they work;
if they do not have enough knowledge to assist them in judging between fact and fiction; if they have
no
sound basis
for appreciating
the

how

their

interests

tied

are

complain

smothering the opportunity of free
enterprise for growth and greater
fulfillment of the needs
of our

livelihood

oryanTZations

unalterably

inter-

twined with the progress and livelihood of the enterprise with which
each is associated?

•

"Communications"
overworked

may

it is certainly an underworked art, from
the management standpoint. In the
word,

but

-bronthgwnhd the'puM?cld
the

po-

change in the pattern
inflationary
and
restrictive
a

settlements of the
fore for

past—and there-

improvement in

agement's

ability

competitive
facing.
„

wUh

employees—lies the real

tential for

meet

challenges

it is

man-

the
now

_...■■■•

Rank and File Are Beginning
To Learn

A poor response to

communica-

tions efforts in the past can be no
excuse

for

after<: all

failure to keep

free

trying;

political

the

sense

alternative course,
that of pushing on toward com¬
plete dominance of our political
economy to the point where eco¬
an

life

nomic

could

run

tempo¬

rarily with almost exclusive regard
for what are thought to be union

George F. Hummel

Theodore E. Wouk

GlenJ.Thoma

If this were to happen,
enterprise would be gone, and
unions might have won a further
interests.

President:

Charles G.

Scheuer, Wm. H. Tegtmeyer & Co.

Vice-President: George F. Hummel, Reynolds & Co.

Secretary: Theodore E. Wouk, The First National Bank of Chicago.
Treasurer:
Directors:

Glen J.

Thoma, Harris, Upham & Co.

Leonard

Friedman, Boettcher and Company; Adolph
Shearscm, Hammill & Co.; John P. O'Rourke, Jr.,
J. P. O'Rourke & Co.; Morey D. Sachnoff, Cook Investment Co.;
James H. Scott, Blyth & Co., Inc.
C.

Egner,

free

battle, but the working

men

Whether

it works

this

way

prise

efficiently operating enter¬
system — may depend in

substantial

measure on

the climate

you

attend their

January 30th party at the Ambassador Hotel.
The CHRONICLE will

oriented to the requirements

Officers invite

Chicago, Inc.)

whether bargaining will be¬

—or

out

These distinguished (Security Traders Association

of the

country might also discover that
they would have lost the war.

this

cover

important meet¬

ing of the Chicago Traders with candid photographs
and

news

briefs

which
employers
throughout the country can help to
develop
among
their employees
and the surrounding public. This
is the real task and challenge for

pages.

industrial relations of the future.

8-page special section.

Traders issue.

opinion

address

by Mr.

We invite you to

Our rates

and return

now

place

are

your

these

you

low. Please check size

wish

for preferred positions in the Chicago

/^Tfcrin

Larry before the

trial

Relations

:.'

Conference, Dallas, Texas.

that

5n J
management to help to

WILLIAM B. DANA CO.

Process Litho

•

are " Port. Only in this

wS!

wVcan

'^aking^sMeXI MlSem^
nL
security of hs people

First

NANCIAL

Now, at about this point, you
may be saying to yourself that the
assigned title for these remarks

"industrial relations for the
Future," and you haven't heard
any mention of many of the specific items which you
feel are
going to be troublesome issues in
the years ahead. And of course it's
true that I haven't said a thing
about
automation,
the
shorter

was

Street

our

•

25 PARK PLACE, NEW YORK 7, N.

account
Net

inches

2 columns

□

314 inches

□

4% inches

agree

2 columns

□

21/2 inches

3 columns

offered,

□

4% inches

3 columns

being sold for the
and 20,000 shares for the

□

Quarter Page

□

Half Page
Full Page

145,000

are

selling

proceeds from

2 columns

stockholder.

the sale of

—

used

by the company for

FIRM

3 columns)

5 columns)

STREET

color press; a new automatic step-

CITY

photo-composing ma^
chine;
installation of
the new
equipment; modernization of the
company's floor space in New
York City, and the possible acqui¬

—

STATE

and-repeat

120.75

—

253.00
462.00

809.00

5 columns)

NAME.

expansion and improvement pur¬
poses, including the purchase of a
new
large 4-color and large 2-

$ 80.50

230.00

(5^4 inches

—

DATE.

FI¬

to pay

152.95
—

(6-7/16 inches

(13 inches

—

Traders

112.70

its 125,000 shares of common stock
will

Security

Picture issue of THE COMMERCIAL &

□

the

company

the

the rate indicated. '.

share.

above

CHRONICLE in space checked below.

□

per

managed

Investing

Corp. offered on Nov. 30, 145,000
shares of Process Lithographers,
Inc. common stock at a price of $5

125,000°

securlty 0± lts people.

Broad

insert

Please

Association of Chicago

employees are a lot
smarter than they used to be—and
so,- hopefully, is the management.' work week, contracting out, mediThere are- encouraging signs that cal care, or any one of a host of
employees are gradually coming to specific issues which may become
i

unions

some

^mate.m wlhich rt-caij Common Sold
;/.£ f
rather
fha^harm th«T interests of the An underwriting group
i_

Charles G. Scheuer

Nineteenth North Texas Personnel Indus¬

^
^

then,

—

♦An

society?
.

in having failed to
try in every way it knows how to
treat
the employees still as
its
employees — whose progress and

management

is not controlled—either by
public opinion, or by force
the
voice
of
the
employees

they

prac¬

come

the part of

adjustment is not

power

law

their

employees
blindly
his thinking for him.
follow union leadership which, for
But where this kind of condition its
own
political purposes, may
exists, does it not simply confirm follow
a
course
of
constantly
the terrible default

this

may

company's financial health;
do not understand somein thinking or talking about some
thing about the competitive marissue because he's paying X dollars ket
system—how can a company
employee that he's not interested

themselves

employee. They acted as
though an employee's
sense
of
identity with his company disan

The Commercial andFinancial Chronicle ,;.

(2200)

AS WE SEE IT

Lomasney Sells
Tenax Debens.
Nov. 29
5%%
convertible
subordinated
debentures, due Oct. 1, 1960, bear¬
ing interest from Nov. 1, I960,
through Myron A. Lomasney &
Tenax,

BY OWEN ELY

National Fuel Gas Company
National Fuel Gas is an old line utility company

(nearly 58 years

old) with a conservative capital set-up, about 45% debt and 55%
common stock equity.
Dividends have been paid each year since
1903, about two-thirds of earnings having been

paid out in recent
its gas sales,

years.
While the company produces a small part of
it is basically a distributor of gas. Last year gas was

purchased at
mcf and, along with the small amount produced,

42c per

sold at

was

an average

of about 78c

National Fuel Gas is

mcf.

per

;

holding company, its subsidiaries in¬

cluding the Buffalo group—Iroquois Gas and Penn-York Natural
Gas; the Oil City group—United Natural Gas, Sylvattia Corp*,
and Mars Company; and the Warren group—Pennsylvania Gas
and its subsidiary, Pennslyvania Oil and Jefferson County Gas.
All subsidiaries are fully controlled with the exception of Penn¬

sylvania Gas in which there is

small minority interest.

about
2
small
section of eastern Ohio; Buffalo, Niagara Falls and Jamestown,
N. Y., and Erie and Sharon, Pa., are the largest population centers.
The system supplies gas to areas with a population of
million in western Pennsylvania and New York plus a

Residential sales provide about

in sales and should eventually reach a considerably

higher satura¬
80%.
In Buffalo, downtown hotels
and office buildings also continue to convert to gas heat.
tion figure than the present

The

system maintains some 30 strategically located under¬
ground storage areas and hence does not have to sell gas at cheap
"interruptible" rates during the summer. All sales for industrial
use are at regular tariff
rates, and area industries historically
have used gas only for higher grade purposes.
Rapid rises in the
cost of competing fuels, and higher labor costs have, in recent

multiplied the opportunities to sell industrial gas.

Each

industrial customers are attached to the System, and
existing customers convert additional processes to gas.
new

company's principal industrial customers

are

in the steel

and steel consuming areas, but the chemical industry is now also

In addition there

becoming important.

are

hundreds of smaller

who find the fuel ideal in such varied

businesses

food

preserving, malting, paving materials, dairy products, bakeries,,
electronics parts manufacturing, optical products, cereal process¬
ing, non-ferorus metal processing, silk processing, and other diver¬
sified lines.
The company has shown excellent growth, operating revenues
having more than doubled in six years—from $50 million in 1953;
to. $105 million in 1959.
As shown in the accompanying table
share earnings (while irregular due to weather and other factors)
have doubled during, the 12-year period, from 88c in 1949 to an
estimated $1.75 this year. Dividends, increasing from 60c to $1.20,
have also doubled; and the price of the common stock has. done
a little better, having nearly tripled from the 1949 low to the 1960
high.
Last year's outstanding earnings of $1.91 resulted largely

from favorable weather conditions

gether with

new

during the heating

Like other gas

distributors National Fuel Gas has had to

be cancelled and refunds

Gas

some

Gas, Texas Eastern,

of these

obtained, they will be passed along.to
requested

The subsidiary

increase

rate

about

Service Commission.
a

The amount would be equivalent to about

share if obtained.

years.

the recent price around 23 on the New York Stock

Exchange, with

indicated dividend rate of $1.20, the stock
yields about 5%%.

It is

general

sales

contracts

discounted with financial institu¬

tions.

owned

Corp.

subsidiary, Tenax Discount
of which $250,000 will be
to the repayment of a

devoted

short-term

bank obligation. The
company's management believes
that, based upon normal banking
practice, the receipt of this $1,000,000 will enable Tenax Dis¬
to

count

raise

additional

amount of money, thereby render¬

ing it able to discount a portion
of the several sales corporations
installment
sales contracts, and
resulting in substantial savings in
the over-all operation of the com¬
pany and its subsidiaries.
From a single operation concen¬
trated primarily in the New York
City area, the company has grown
without the acquisition of other
concerns
to a multiple operation
that services certain metropolitan
in the

areas

states of

selling at only about 13.2 times the estimated earnings of $1.75

Pennsylvania,

sey,

Delaware,

Maryland, District of Columbia,
Virginia, Massachusetts, Rhode Is¬
land and New Hampshire.

Co.,

Inc.

has

been

formed with: offices at 61 Broad¬

New' York City, to engage in;

way,
a

securities business; Louis E. La-

fleur is

15.1.

principal of the firm.

Corp.

LOS

ANGELES, Calif.—First Cit¬
izens Corporation is engaging in a

Revenues

-Common

(Mill.)

1960-

210 West Seventh Street.

Lewis is

All through World War II and ever since we have been
playing Santa Claus on a scale that even we can not in¬
definitely continue; can not indeed continue much longer
unless we are willing—which apparently we are not-—to
revamp our national policies at home. Billions upon bil¬
lions of dollars have gone abroad in "unilateral transfers"
and in the payment of military expenses. The
process has
been on such a scale and so prolonged that,
along with
other factors which really should not have been
permitted
to rise, questions have arisen about the
stability of the
dollar, and have obliged the Federal Government to take
steps.
\
■ y. •
■
It is probable that that
unwillingness of other coun¬
tries now grown economically vigorous to step in to
relieve

Mocrey is engaging in

under the firm name
Mocrey Associates.

ference to the

Forms Shulman Co.

name

from

1570

under

the

firm

of Shulman Company.

Form Smith Management
BROOKLYN, N. Y.—Smith Man¬
agement & Brokerage Corp. has
to

engage

strain, which is becom¬

this country, is not altogether indif¬

common

welfare of the western world. It

is clear that there is

really doubt in many minds abroad
about the wisdom of the policies that we have been pur¬
suing. This unwillingness to share the financial burden
goes deep, and may well be difficult to eradicate—as are
other differences among us.

Communists Divided, Too
Now at the

same

time that these differences

are

saries, too,

having their differences which may very
headlines, these dif¬
to do with the relative advantages of ' 'peace¬

are

well limit their effectiveness. In the

ful coexistence" with the non-communist world and the

Leninist doctrine of the

"inevitability" of armed conflict
"imperialists"—the communist term for all who
do not follow them: But a good deal more than an ideologi¬
cal or purely theoretical viewpoint is involved. So far do
the differences go that they could conceivably alienate
Russia and Red China, the two most powerful and most

with the

dreaded nations of the communist world.
But

must not

permit ourselves to misunderstand

probable im¬

be comical to hear the communist
others

leaders

*$1.75

$1.20

Marx and Lenin—all to be ruled from

munists, and it would be much

central place,
it. The truth is

some

are

the

1.15

into the mouths of the western leaders than in those of

the communist
either have

bosses—although,

may

heaven forbid, that

good ground for proclaiming

such doctrine.

any

1.47

1.10

Let No One Misunderstand

With Hill, Darlington
SEATTLE, Wash.

—

William F.

But

Peiping

let
are

quite clear1 that

what

Moscow

1.39

1.10

Martin is

1.64

1.03

1955

firm of

1.57

should rest from the work of world conquest, but

ljQO

1954—

64..

118

.1.40

1.00

whether

executive.

1953.

1.11

.95

1.38

.80

1951-

.80

1950

,65

.60

—

1949——_ ;

♦Estimated.

associated with the

.—

1952

now

Hill, Darlington & Grimm,
Fourth Avenue, as an account

36
30*

1.19
1.23
....

With Livingston, Williams

by subversion and intrigue. It is well enough for Mr.

Khrushchev to talk about the relative merits of the two

CLEVELAND, Ohio.—'William E.

social

merits. It

intends to

permit nature to take its

with Living¬

ston, Williams & Co., Inc., Hanna
Building. *
;
*

merely

they should go about it with rockets and artillery

Bodenhamer is

now

and

arguing about is not whether communists

com¬

appropriate for the
non-communist world to be preaching the doctrine of
Lenin to the effect that the imperialists will never
permit
peace to reign in the world until they have the peoples
of the globe in the palm of their hand. The "inevitability"
of war as thus expounded—would fit much more neatly

1.91

...

all

condemn

"imperialists," and at the same timq plan the
conquest of the remainder of the world in the names of
as

1956—.——

mak¬

ing the headlines, and at a time when the communist world
is boasting about the "monolithic" structure of commu¬
nism, it has for some time been apparent that our adver¬

globe

offices

Avenue

of this financial

even

the Kremlin, if the Russians can arrange
that the only imperialists left on the

BALDWIN, N. Y.—Arthur Shul¬
man
is
conducting a- securities
Avenue

some

mediate effect upon the imperialism of the communist na¬
tions. Of course, were the situation not so serious it would

Robert

Grand

the basic nature of this difference and its

securities business from offices at
19 West 44th Street, New York

City,

ing too much for

Howard

principal of the firm.

Robert Mocrey Opens
Robert

securities business.

1957

Costs of Defense

Approx. Price Range

105

1958—

Stock Record

(Dividends

*$110

1959-.—

Earnings

Representatives of this government have of late been
trying to make a beginning at least in persuading certain
of our present allies to assume more of what we
regard as
the burdens of preparedness to defend the free world from
Communist infiltration and subversion. Current reports
suggest that the task has been! quite fruitless. In the case
of Germany, as well as some of the other nations, we
poured out vast sums to get economies back on their feet,
and the results have been
astounding. Now that many if
not most of these countries, are quite able to
put a finan¬
cial shoulder to the wheel, it is evident that
they are re¬
luctant to do any such thing.

securities business from offices at

Mermaid

Tears

■

ferences have

Lafleur Co. Opens
Lafleur

been formed with offices at 2114
around

page

question the Kremlin will be quick to grasp and exploit
come in respect of the costs
of. maintaining our
armed forces in the various countries and of contributing
to the relief and development of so-called backward
countries.
'
(/
•; rV ; "r,' v" 1 ■'','

New York

(including Connecticut), New Jer¬

business

The company has paid dividends each year since
1903, about
two-thirds of earnings having been paid out in recent

its

installment

million and hearings are being held before the New York Public

10c

and be
wprking
capital to improve the ratio of
available capital to the amount of

Columbia

increased costs should

customers, it is understood.

Corp. has

indebtedness,

added

pay

involved in proceedings before the Federal Power

However, if

the company's own

Iroquois

discharge d total of $120,000 in

short-term

First Citizens

Gas and Consolidated Natural Gas—rate increases from time
are

purchaser of the freezer.
An aggregate of $380,000 of the
,net proceeds (after deduction for
certain expenses) will be retained

business and adjustments in rates.

its pipeline suppliers—Tennessee

time which

for freezer-owner to be
supplied, at his request, with foods
by independent contractors and
finances time payments by the

to¬

season,

For .the. 12. months ended; Sept. 30, earnings were $1,79 com¬
pared with $1.91 in the previous 12 months. Revenues increased
nearly $7 million but the cost of purchased gas increased over $6
million and some other expenses gained (with a partial offset in
income tax savings).
«

Commission.

sells freezers to the consumer, ar¬
ranges

In addition, approximately $1,-

sales last year. Gas
predominate, and gas clothes dryers
are becoming common in customer households.
Gas incinerators
and gas refrigerators are being used in increasing numbers, and
there is now an appreciable amount of gas air-conditioning equip¬
ment connected to the system.
Conversion of gas for space heat¬
ing in older homes accounts for a sizable portion of the increase

users

Co., New York City.
The company
and its twelve
wholly-owned subsidiaries oper¬
ate an integrated business that

000,000 will be made available by
the parent company to its wholly-

water heaters and gas ranges

The

Space heating sales

accounted for 57% of total unit volume of gas

years,

offered

Inc.

of revenues, industrial

71%

16%, commercial 12%, and wholesale 1%.

year

Continued from

—has

SECURITIES

about

Thursday, Decerriber l, 1960

systems and to predict that his will win

plain enough that he,

no. more

course;

its

than Mao,

.'/

;

Volume 192

Number 6008

The Commercial and Financial Chronicle

from

from
Continued from page 7

1,478,000 tons. A
at

2,650,000

tons,

the

ago

year

tual weekly production

ac¬

placed
*165.0%.

was

production is based on
weekly production for 1947-49.

age

aver¬

There

Class I

were

rail¬

systems originating this type

traffic

Best November Output in History

the

with

pared

Auto Industry Finished Its Second

week

current

one

com¬

and

ago

year

1958.

The

auto

wrapped
vember
as

virtually

second-best

No¬

its

called

Thanksgiving

Ward's

Automotive

timated

116,016
completions this
comedown

es¬

passenger

week,
149,753

from

week.

Reports

car

22.5%
for last

vember

service

volume

said

No¬

crowd 590,completions,., a
November total exceeded only by
the peak for the month of 749,061
set in 1955.
V'
to

000

may

600,000

The record in prospect comes in
face of a mixed production

the

trend which finds five auto plants
closed all of this week and eight
others

working only three days to
adjust d e a 1 e r inventories with

sales,'

Truck

Tonnage

2.2%

Below That of 1959 Week

both

week

truck

ended

below

tonnage

Nov.

that
of

19,

the

1959,

the

2.2%

was

corresponding

the

American

Trucking

Associations,

nounced.

Truck

the

Inc.,
tonnage was

an¬
an

4% ahead of the volume for

even

observance

week

increase

and Election
the

the

this

year.

results

from

Veteran's

Day

Day holidays during

preceding

week.

Nov.

6-12,

1960.

than

400

truck

terminals

carriers

mon

South

and
13

from

showed

for

terminals

three

overall

tic toll
the

was

American Motors and StudebakerPackard

tively.

consin

and

Indiana.

Wis¬

last

—showed

85,000

truck

the

and

re¬

completions :in

29,000

and

4,500,

spectively, in Canada.
Ward's

said

the

North

Ameri¬

can-type cars are receiving
public sendoff in Canada.
dian

brisk

gions.
1959

The

South

Thirty

Nov.

1-10,

rate

for

that

units
daily

942-unit

2.7%

was

above

917

daily in entire October when 23,900

sold.

were

troductory

October,

month,

than

the

netted

in¬

16,900

sales.

however,

cars,

taking

are

28% of the total Canadian market.
Ward's

said U. S. plants built
6,000,000th car since Jan. 1
this week, widening their margin
over
comparable
1959 to
more
than 1,000,000 units.
their

Electric

Output
1959

The

amount

2.5%

Trade
low

2.7%

Nov.

shipments of 462

Barometer

were

mills

2.7%

be¬

during the week
ended Nov. 19, 1960.
In the same
week, new orders of these mills
8.0% below production.

filled

orders

amounted

Un¬

reporting

23%

Wholesale

energy

by the electric light
industry for the week
ended Saturday, Nov. 26 was es¬
power

stocks.

gross

reporting softwood mills, un¬
orders were equivalent to
13 days' production at the current

rate, and gross stocks were equiv¬
alent to 53 days' production.

year-to-date, shipments
reporting identical mills were

ders

were

production;

new

or¬

below production.

5.6%

Compared

with

the

but

showed

kwh;

14,042,000,000 kwh.
;gain of 327,000,000

2.5%

above

that

comparable 1959 week.

the

corresponding week in 1959, pro¬
duction
of
reporting mills was
19.2%
below;
shipments were
10.8% below and

orders

were

Business

Failures

Down

the

revenue freight) for
ended rNov.
19, • 1960,

week

totaled

tion

567,299

American

nounced.

62,596

This

cars

decrease
below

the

was-a

week

1958.

Railroads

52,455

an¬

decrease

9.9% below the

responding

the Associa¬

cars,

1959

cars

;

cor¬

and

8.5%

corresponding week in
7
7, :i
...

Loadings in
19, were 2,709

the

week

Nov.

cars or five-tenths
of 1% above the preceding week.

There

were

loaded with

highway
the

10,794

one

trailers

week

ended

cars
more

reported
revenue

(piggyback)

Nov.

12, 1980
(which were included in that
week's over-all total).
This was
an

increase of 2,510 cars or 30.3%

above

the

corresponding week of

1959 and 4,285 cars or

the

1858

Cumulative
for

the

piggyback loadings

first

cars

fell

weeks

1960

for an increase of
34.2% above the

shortened
from

276

329

the

reported

Dun

Despite

this

casualties
ago

when

ceeded

holidayNov.

preceding

week,

Bradstreet, Inc.
dedline,
however,
higher than a year

ran

2G8

10%

cumbed
of

occurred

and

ex¬

than

prewar

businesses
the

suc¬

comparable

1939 when there

252.

were

$5,000

involved in 251 of the week's

casualties

against 296 in the
previous week and 236 last year.
as

Small

failures

$5,000

dipped

week

with

losses .under

from

earlier.

Thirty-six of the
failing concerns had liabilities in
of

$100,000, falling from a
high of 51 in the preceding week.
All

industry

except
tolls.

and

trade

groups

manufacturing had lower
Retailing casualties decliried

There

was

high

$6.12

set

7 7
Moving higher in wholesale cost

year ago.

this week

flour, wheat, corn,
hams,
bellies,
lard,
coffee and steers. Lower in price
were
butter, sugar, cocoa, hogs
oats,

were

beef,

rise

supplies.

The

picked

Price

of 31

Inc.

the

food¬

raw

meats

general use.
cost-of-living index.

function

show

general trend of food
the wholesale level.

the

prices

Up Fractionally

From

Association

moderate

Mr.

would succeed

some

mar¬

higher prices on some
butter, steers, and
lambs offsetting declines in flour,

the

New

York

Cotton

Retail

Trade

Warm

The

ended

this

over-all
low

the

.Wednesday
holding
trade slightly be¬
ago. The greatest de¬

year

from

last

occurred in

year

men's
and
women's
outerwear,
major appliances, and floor cover¬
ings
offsetting
gains
in
new
passenger

The
tail

total

trade

dollar

volume

the week

Wednesday

re¬

ended

this

from

un¬

ranged

changed to 4% below

according

year

ago,

spot estimates col¬
by Dun & Bradstreet, Inc.
Regional estimates varied from
lected

the comparable 1959 levels by the

following percentages: East North
Central, South Atlantic, and West
South

Herbert S.

Central —1

—5; Middle

Atlantic, West North Central, and
Pacific Coast 0 to —4; New Eng¬
land
and
Mountain
+1 to —3;
East South Central +2 to —2.
Sales Down 7%

Department

Other

country-wide basis

sales

taken from

the Federal Reserve Board's index
for the week

show
like

ended Nov. 19,

decrease

period last

ceding

John J.

decline
1

reported.

ended

the

For

Nov.

reported.

was

Nov.

over

In the pre¬
Nov. 12 a de¬

was

weeks

The

showed

period

increase.

According to the Federal Re¬
System
department
store

serve

sales

York

New

for

City

the

(1930-32

from

ended

week

from Jan.

the

com¬

corre¬

week
were

earlier;
light.
In

rye

Higher trading in
oil helped
soybean prices rise appreciably;
export purchases were good and
receipts were light.
soybean

purchases

lagged

and

from

prices

fell

flour

week

the 1959
to Nov.

somewhat

earlier; export buy¬
steady.
There was
a

period

decrease

last

was

re¬

period, and

above

there

the

was

level

Townsend, Crouter
Bodine, Treasurer.

The

following

for

the

were

nominated

Executive Board:
Cameron

Thomas

Hopper, Soliday & Co.; H. Gates Lloyd III, and
Joseph L, Pyle, Jr., of Kidder,
Peabody & Co., Mr. Bengtson and
Sherrerd.

Mr.

-The
the

nominating

committee

for

jcurrent election consisted of:

William

Brown

Bache

Co.; Arthur Judson II of C. C.
Collings & Co., Inc.; H. Gates
Lloyd III; Samuel R. Roberts of
Schmidt, Roberts & Parke and
Robert
G.
Rowe, Jr., of Paine,
Webber, Jackson & Curtis.

Sulray Common
Stock Marketed
Sulray,

Inc. offered on Dec. 1,
100,000 shares of common stock at
$3 per share through J. A. Wins¬
ton & Co., Inc. and Netherlands
Securities

earlier.

Robosonics

The net proceeds, after deduct¬
ing expenses, will be approxi¬
mately $235,000
which
will be
added

occurred

prices during the week as
expanded
somewhat.

the

cash

funds

the

to be available for gen¬
eral corporate purposes, including
company

working capital.
now known, the use
proceeds, in priority
of application, will be as follows:
of

such

net

For additional advertising, pro¬
and
distribution
of
the

motion

company's present products, $100,000; for new product develop¬
(particularly "Dermagene")

ment

The
under

Common Sold

company

laws

the

New York

was

incorporated
the

State

Seft. 1, 1944

Na¬

tional
Healthaids,
Inc.,
which
Kahn, Inc. offered on changed its name to Sulray, Inc.
29, 180,000 shares of the on Jan. 22, 1960. The company's
common stock of Robosonics, Inc*
offices are located at 273 Colum¬
at a price of $5 per share.
bus Ave., Tuckahoe, N. Y. Sulray,

Mandell

Nov.

Proceeds from the issue will be

the

company

for

the

quantity production
of the Robosonic Secretary; for a
public

relations,

sales

and

mer¬

chandising program; for enlarging
research

and

development facili¬

ties; and for patent and patent
applications on a world basis.
The company is engaged in the
business of developing, manufac¬

principally engaged in the busi¬
of marketing a line of pro¬

ness

medicated skin condi¬
proprietary drug
specialties under its own brand

prietary

tioners and other

names

manufactured

specifications
by others.

for

and

own

its

formulas

Three With Thomas Jay
(Special to The Financial Chronicle)

turing and distributing electronic
equipment. As the successor to

BEVERLY

Robo-Sonics

the

increase

Co., Inc., both of New

York.

$75,000; and the balance for addi¬
to working
capital for in¬
ventory.

period.

Industries, Inc., it has
marked rise in export buying of acquired all of the latter's right,
rice, with sizable quantities sold title and interest to the complete
to India,-Indonesia, Pakistan, and working models, and other proper¬
Israel.
Domestic
buying of rice ties affecting the use of an auto¬
was sustained at a high level and
matic
telephone
answering
in¬
prices matched those of a week strument to be marketed under

purchases

tion

initiation

light offerings.

the preceding
12, sales were

same

used

Following the rise
in
corn,
oats prices
moved up
somewhat with good volume and
and

Nov,

over

gain

prior

period.

showed

achieved in the 1959

year ago.

ported
a

the

above

Strengthened by increased buy¬
ing
and
smaller
receipts,
corn
prices advanced slightly from the

sugar

Drexel

To the extent

Nov.

year.

earlier.

offerings

slight

are:

needed additional

last

frac¬
low of

prices dipped notice¬
higher receipts and
sluggish flour business.

year

of DeHaven &

riod

7 Both domestic and export pur¬
chases of wheat moved up during
the week helping prices rise mod¬

was

Sherrerd

decrease of 6% over the same pe¬

100),
1960

276.77
a

week

Nov.

the

week

with

sponding date

ing

nominated

ensuing

Co.,
Vice - President;
Harry
J.
Kirby, Jr., of Blyth & Co., Inc.,
Secretary, and Henry E; Crouter

For the four weeks ending
19

the

1960,

year.

for

week
of

four

year.

soybeans

officers

for

serve

at the Mask &

Bengtson

From 1959 Week
store

due

held

Wig Club, 310
Quince St., Philadelphia.

South

and food products.

cars

Thursday
Dec.
8,
1960,

week

retail

i ation

s s o c

areas

and

election of the
will

again dis¬
early Christmas shop¬
general consumer buy¬

most

annual

meeting

Slips Below

temperatures

ping and
ing

term

expires.

Ex¬

Year Ago

couraged

Co.,

whose

change showed little change from
the
preceding week and prices
were
steady.

hogs, and
rubber,
the
general
commodity price level edged up
fractionally in the latest week.
On Nov. 28 the Daily Wholesale
Commodity Price Index, compiled
by Dun & Bradstreet, Inc., stood

Gates
&

sugar,

tionally

Bengtson

III,

With

262.50 of

Philadelphia.

Although there was some doubt
that the crop would equal the gov¬
ernment's Nov. 1 forecast, trading

Jan.

Prior

Week

pared

for

Investment

Lloyd

crease

Wholesale Commodity Price Index

262.74

nominated

the

Drexel

the

grains,

been
of

prices

lamb

has

President

kets.

Index

total

sum

pound

not

chief

Its

the

and

Bradstreet,

Food

per

stuffs
It

PHILADELPHIA, Pa.—Herbert S.
of Schmidt, Roberts &

Bengtson

Parke,

Nationwide Department Store

Dun

represents
price

occurred

volume

lambs.

and

fractional increase

prices on steers and buying
equalled that of the prior period.
Hog prices moved slightly lower,
despite
active
trade
and
little

new

level
was
up
3.9%
$5.92 of the similar date

Domestic

Liabilities
were

ended

noticeably the 244 in 1958.

Almost

week

the

week

hit

current

ably

Commercial and industrial fail¬
ures

excess

totaled 484,686

123,509

65.8% above

week.

The

and

earlier, and was the highest
the $6.15 of April 29, 1959.

contrast,

Holiday Week

'ing of

In¬

On Nov. 22 the

year.

1960

wheat

Loa

Price

close to the pre¬

was

clines

ago.

year

0.5% to $6.15 from the

rose

erately

below.

13.5%

Car Loadings Show 9.9% Decrease
From 1959 Week
;7;

new

with

mills

(holiday) week ended Nov. 12,
1960, production of reporting mills
timated
at
13,500,000,000
kwh.,
was 0.8%
above; shipments were
according to the Edison Electric
below;
new
orders
were
Institute. Output- was 458,000,000 0.4%
4.1% above.
Compared with the
kwh..below that of the previous
week's total of

index

For

below

Food

this week

row

filled

failures

compared

preceding week and 44

Wholesale

production

distributed

and

Were

reporting to the National Lumber

2.8%

electric

all

For the

Above

Week
of

from

10%.

Ended

Lumber

the

dex, compiled by Dun & Bradstreet, Inc., rose for the fifth time
in

Below Production During Week

were

Import

five

decreases

Shipments

and

Canadian

in the similar week

from the

volume

ceding week.

ex¬

Central.

six

in the

States

reported

were

terminals

corresponding 1959 week,

Lumber

one

only
declines
from
in the Middle and

Atlantic

since

sizable

equalled

appeared

South

week

the

and

ceeded last year's level in six re¬

land, Cincinnati and Birmingham

Cana¬

dealers sold 8,500 such

Detroit

cities—Buffalo, Milwaukee, Cleve¬

;

Ward's said November prospects
are
for nearly
600,000 car and

down

was

Casualties

largest

Truck

week's

to 90 whereas

one

Pacific Toil

64.

year-to-year
and 9.6%, respec¬

the

little

was

To Another New High for the Year

tonnage

and

reported

gains
basis—up 10.3

regions

change
other areas; the Middle Atlan¬

prior

7 Two M e r q u r y and. four
Chrysler Corp. plants also worked

three

most

63, in
41,

from

Central to

Wholesale Food Price Index Rises

for

increased

Jacksonville

from

to 20

These

25.

high for the

Corp.' factories

con¬

com¬

level.

South

downturn. There

The

survey

West

said.

did

and

freight

general

terminal

Atlantic

in the

accounted

throughout the country.
The

trade

fell

plant at Wayne, Mich., the Dodge
year ago in 10 localities.
plant in Hamtramck,7Mich., and Twenty-four points reflected de¬
Plymouth in St. Louis, Mo., Ward's creased tonnage from the
1^59

week <7

Receives Slate

from

change in

States

East

findings are based on the
weekly survey of 34 metropolitan
areas conducted by the ATA Re¬
search
Department.
The report
reflects tonnage handled at more

over

this

Phila. Inv. Assn.

remained unchanged from a week
earlier. Cocoa prices were steady

Failures in the East North Cen¬

These

1 '•
'
this week is the Mercury week

days '

Despite slow roaster demand and
plentiful supplies, coffee prices

service to

wholesale

tral

wholesaling to
construction to 51

and

considerably above its 1959 level.
While retailing and service casu¬
alties edged slightly above a year
ago, dips from 1959 prevailed in

the

Intercity

; 7 ,7,'7''

Idled

corresponding week of

Part of this

.<V''-.".V; 7
statistical

The

64,

struction.

week

losses.

Day

the

Intercity

nearly one-half

assembly plants back to
work Friday and Saturday to re¬
coup

output in history this

car

week

industry
its

152,

32,

corresponding period of 1959, and 30. In
contrast, the toll among
246,462 cars or 103.5% above the manufacturers mounted to 60 from
corresponding period in 1958.
51, lifting this group's mortality
road

♦Index

from

120

(2201)

name

"The

Robosonic

Secre¬

tary,"
including
issued
patents
and patent applications which are
presently filed in 15 countries.

HILLS, Calif.

—

Mark

Cote, Willard H. Lee and Leo
R. Simon have become associated
with Thomas Jay,

Inc.,

9235

bers

Winston & Co.,
Blvd., mem¬

Wilshire

the

Pacific

Coast

Stock

formerly
with
Binder &
Co. and Lester,
Ryons & Co. Mr. Lee was with
Hayden, Stone & Co. and prior
thereto was Beverly Hills manaExchange.

Mr. Cote

was

(2202)

The Commercial and Financial Chronicle

Indications of Current

latest week

Business

Activity

I
>!

The following statistical tabulations

week
Latest

AMERICAN

IRON

Week

INSTITUTE:

STEEL

AND

month ended
Month

Week

Indicated

Steel

Equivalent

Steel

Crude
42

each)
to

runs

Gasoline

Finished and

(bbls.)

average

§49.3

*49.0

BANK

(bbls.)—

output

fuel

gasoline

(bbls.)

(bbls.) at__

Distillate

oil

2.650.00C

1,478,000

*1,367,000

(bbls.)

6,968,160

6,934,575

6,771,010

6,955,310

7,717,000

7,947,000

October ,(000's

28,301,000

28,816,000

6,038,000

183,062,000

187,002,000

36,833,000

36,229,000

36,807,000

175,327,000

179,154,000

177,632,000

47,963,000

48,724,000

50,929,000

564,590

637,311

warehouse

Based

Revenue

freight received from connections (no. of cars)—Nov. 19

494,099

*496,651

527,670

542,673

ENGINEERING

$405,132,000
632,958,000

_—

______

credits

25,023,000

205,000

649,000-:

55,748,000

138,760,000

122 810,000

35,750,000

419,386,000

stored

and

shipped

3 97,789,00 0

2 33,932,000

$1,753,235,000$1,668,363,000

$945,072,000

between *

countries

Total

__W—

CASH DIVIDENDS—PUBLICLY REPORTED BY

S. CORPORATIONS—U. S. DEPT. OF
COMMERCE—Month of October:
--

wU.

CONSTRUCTION—ENGINEERING

632 ,059,000

142,599,000

•

$304,460,000
2:0,153,000

$408 851,000

14,400,000

goods

foreign

629,890

—

exchange

56,292,000

567,299

cars)

Ago

$230,245,000'

$233,110,000 *$241,799,000

—

Domestic

31,970,000

Nov. 19

BANK

31:

RAILROADS:

(number

Year
-

OUT¬

RESERVE

Oct'.

shipments

174,571,000

—Nov. 18

FEDERAL

—

YORK—As

Domestic

177,260,000

184,671,000

freight loaded

CIVIL

NEW

Dollar

Nov. 18

at.

AMERICAN

Month

—-

ACCEPTANCES "

Exports

6,735,000

5,408,000

5,393,000

12,561,000

12,728,000

12,718,000

13,138,000

Revenue

ASSOCIATION

GOVERNORS

Imports

2,213,000

2,919,000

2,836,000

3,269.000

Nov. 18

——

omitted)———

DOLLAR

STANDING

8,017,000

27,051,000

Nov. 18

at—

of that date :

Month'.,.'-

•

DEBITS—BOARD

pipe lines—

(bbls.)

Residual fuel oil

§1,404,000

117,987,000

Nov. 18

are as

THE FEDERAL RESERVE SYSTEM—Month

28,205,000

Nov. 18

•

93..'

Nov. 18

(bbls.)

of quotations,

cases

either for the

are

Latest

BANKERS'

Nov. 18

or,

Ago

51.9

Nov. 18

—

unfinished

Kerosene

.Nov. 18

—

(bbls.)

oil

Dec.

■

Stocks at refineries, bulk terminals, in transit, in
,

(bbls. of

output—daily average

stills—daily

output

fuel

tons)

(net

Kerosene output (bbls.)
Distillate fuel oil output

Residual

Dec.

—

INSTITUTE:

condensate

and

gallons

Crude

castings

and

PETROLEUM

oil

cent capacity).

(per

production and other figures for the

cover

to—

ingots

AMERICAN

operations

Thursday, December 1, 19C0

Dates shown in first column

that date,

Year

Ago

■

month available.

...

NEWS-RECORD:

Total

Private

-Nov. 24

$613,400,000

$473,600,000

365,300,000

219,300,000

182,600,000

—

construction

State

COAL

Nov. 24

(U. S.

coal

DEPARTMENT

BUREAU OF

and

lignite

STORE

254,300.000

165,500,000

203,500,000

143,900,000

160,800,000

94,900,000

50,800,000

21,600,000

ERAL

202,000,000

153.200.000

.Nov. 19

7,980.000

*7,320,000

8,535,000

;

377,000

383,000

362,000

409,000

100

—

—Nov. 19

FAILURES

(COMMERCIAL

BRADSTREET,

Nov. 26

AND

INDUSTRIAL)

—

;•■!'

169

Crop

•

157

163

182

13,500,000

14,042,000

13,173,00!

13,883,000

steel

329

331

263

Pig iron (per gross ton)
steel

Scrap

(per

METAL PRICES

(E.

6.196C

6.196c

$66.32

$66.41

.Nov. 22

$28.33

$29.50

Barley

$44.17

Rye

Export

refinery

Lead

(St. Louis)

tZinc

(East St.

Aluminum

Straits

at—

(New

29.600c

Nov. 23

27.900c

27.625c

26.875c

31.575c

12.000c

12.000C

13.000c

11.800c

12.800c

—Nov. 23

York)

13.500c

"13.500c

13.000c

26.000c

102.750c

102.625c

103.250c

Bonds

—Nov. 29

86.11

86.54

88.04

86.78

91.34

91.62

88.13

—Nov. 29

88.95

89.23

DAILY

81.05

81.29

80.81

84.17

83.79

87.99

87.99
88.81

3.99

3.93

3.76

—Nov. 29

4.65

spring

Early

Tobacco

4.84

Sugarcane

4.32

4.30

4.55

Sugar

4.47

4.68

Broomcorn

.Nov. 29

4.69

4.70

4.69

4.86

5.10

5.08

5.12

5.25

Group

Orders

PAPERBOARD

received

OIL,

4.82

Pears

4.50

4.68

Grapes

355.8

355.0

355.5

378/,

.Nov. 19
.Nov. 19

283,461

end

DRUG

REPORTER

PRICE

325,226

-Nov. 19

of period.

272,216-

309,245

.Nov. 19

(tons)

PAINT AND

5.00

4.56

4.53

393,601

320,748
327,941

435,919

AVERAGE

ROUND-LOT

100

___.

TRANSACTIONS

FOR

ACCOUNT

.Nov. 25
OF

MEM-

108.60

/ 108.57

109.99

111.6

Total

Nov.

Total

Other

1,846,760

2,129,65(

397,490

353,910

the

1,614,830

1,768,11-

2,050,810

2,321,130

1,968,740

2,144,82!

Total

Other

Sales

322,370

275,590

36,600

33,300

initiated

the

241,740

267,300

273,740

303,900

floor-

282,200
*

429,44

-Nov.

606,580

138,960

111,720

519,497

563,266

475,371

.Nov.

sales

805,753

139,410

.Nov.

——

688,970

.Nov.

Sales

sales

•j 659,58-;

658,907

702,226

587,091

756,86",

Total round-lot transactions for Account of members—
Total
purchases—.

Nov.

2,956,480

3,459,183

97.28C

Nov.

597,550

sales

573,050

Nov.

498,930

564,590

2,385,907

2,754,206

2,372,441

seed

sales

Nov.

—

2,983,457

3,327,256

2,871,371

Odd-lot

sales

Number
Dollar
Odd-lot

—SECURITIES

EXCHANGE

dealers (customers'

COMMISSION

Customers'

short
other

sales

Round-lot sales
Number

Short

SELECTED

Round-lot

FOR

Total

Short

SALES

ROUND-LOT

ON THE

STOCK

MEMBERS

LABOR

1,581,506

Net

All

1,125,784

—

$52,048,948

$66,807,859

Meats

All

DEPT

575,950

(in

long
in

~3I_
2

than

690,350

676,940
13,717,460

Total

12,147,820

14,394,400

farm

and

foods

ofaofnR?eL265i'00i°o<;bQalrelf of,

inwSfwfn
cent

t^pouiul

Nov

119.f

90.4

89.7

87.8

108.9

109.0

108.0

105.T

96.4

96.2

94.3

89/

127.9

*128.0

127.6

I_Nov.

for

from

fixed

tPHm.

f9A9

fPnme Western

23,984,149

25,478,865

income_____i:

,charges__

25,055,789
49,039,938

-iJ.

charges..—/-/../

60,799,036

31,372,559
13,627,027

31,351,648
29,447,388

4,188,217

fixed
OF

4,282,461

9,582,903

25,164,927

52,534,278

51,231,540

16,632,199

7,539,276

10,424,591

18,446,301

27,314,746

28,136,873

303,006

3,257,959

2.09

____

1.43

1.91

30,245

31,105

33.370

4,044,124

52,563,334

x.____"

charges__________

PRIMARY AND SEC¬

THE

UNITED

•

STATES
of

Sept/

A__'_

period

7,890

•

(000's

7,205

4,975

210

6,995

4.825

3,760

4,635

2.150

2,360

2,675

$25,546,300

GUARANTEED

A.—Month

$3,432,300

$41,081,000

$1,610,100

$1,612,700

$1,479,100

1,160,300

1,228,100

1,392,100

150-

DI¬

SECURITIES

October:
:

STATES

BUREAU

Exports

6,140

2,270

purchases

Imports

36,125

___/__

Net

41,100

30,245

6,030

MARKET TRANSACTIONS
S.

7,730

37.450

31,995

6,345

38,135

transactions

.____

29,934,569

manufacturing

AND

4,438,272

44,999,586/

34,122,786
*

equipment)

MINES)—Month

25,410,631
65,237,308

4,040,352

65,462,571

;

„;*•

i._^

end

•

2,547,586

/__

sales

4,403,096

39,826,677
'•

31,339,785'

structure

Net

128.'

crude runs- §Based on new annual capacity of 148,570,970 tons
^f,ls of 147,633,670 tons.. tNumber of orders not reported since introduction of
Zinc sold on delivered basis at centers where freight from. East St. Louis exceeds

102
105

;

processed

RECT

85.1

"noy!

107

108

Commission)—•
■

Intercompany scrap

TREASURY
119.0

107

44,386,802

CLASS

taxes

tons):

Consumed

UNITED

NTonthlv

Oct.:

stock

Primary

7,029,000

—___

income___„___

:__

12,838,170

119.6

16,197,000
9,168,000

___

Stocks

Nov. 22

one-half

beginning of period__l________/__

15,521,940
16,449,780

119.7

*9,396,000

♦7,095,000

69,865,667

Commerce

stock-

TIN

(BUREAU

561,280

*16,491,000

...

RESERVE

^Secondary

other

FEDERAL

ITEMS

TIN—CONSUMPTION

357,300
*

100):

—^

foods

o'AlT?

16,330,000
9,345,000

;

income

927,840

13,134,680

165.9

6,985,000

appropriations;/

ONDARY

286~150

—

commodities

Dividend

853,050

13,987,730

98.3

*172.0

manufac¬

.____>

fixed

preferred

286,150

*98.5

171.2

income

459,720

Nov

products

Federal

1,338,194

Inov!

5,415,000

$70,913,234

Nov!
SERIES

6,786,000

*5,448,000-

97.7

;

deductions

Receipts

;

PRICES, NEW

12,206,000

*6,947,000

100)—.

Supply
4

*12,395,000

5,345,000

Avg/=100)—

Average

income

Stocks

Nov.

150,062

6,909,000
.

__W__2_1_

common

587,010

195
9)9

143,500

12,254,000

__:

charged-

459/720

______:

after

11,573

222

DEPT.

__u_

(1947-49

deductidns

1,326,621

357,300

2,886

215

230

/ '

(1947-49

available

20,955

(SHARES):

commodities

Processed

income

1,104,829

526,670

1,237

179,200

(production workers)
:
J.__

operating

36,900

Commodity Group—
Farm

SERIES—Month

August:

fixed

Other

$81,961,393

sales—

(1947-49

1,471,966

3~8T220

•

110

381,220

Nov.

sales

—

adjusted

Total income

1,432,489

TRANSACTIONS

sales

WHOLESALE

Total

STOCK

Sales

Other
Total

STOCK

AND

ACCOUNT

•.

goods

$57,868,032

._Inov!

purchases by dealers—Number of shares

round-lot

PAYROLLS—U.

•

OF^THE

railway

$66,212,925

Nov.

ROUND-LOT

EXCHANGE

___:

of employees in
industries—
-

25,638

Nov.

sales

TOTAL

/ 237
1,344

_____J

INCOME

Month
Net

Ratio

sales

Sales

Other

-.196

indexes

1,257,688

by dealers—

shares—Total

29,9ol

3,139

Unadjusted

1.640.865

1.508.866

62,528

30,191

.»

SYSTEM—1947-49 ==100—Month

$77,819,481

1,283,326

Nov.

Nov!
Nov!

value

74,339

3,020

Depreciation (way &

Nov.

sales

Customers'
Dollar

1,432,734
$64,438,473

53,600
1)2.456

.___

number

Seasonally

Total

Nov.

46,347
121,787

74,723

Nov!

dealers (customers' sales)—
Number of orders—Customers' total sales

46,347
107,370

(bushels)

crop

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

Income

17,015

26,408

indexes

Income

7,318

16,727

;

REVISED

Miscellaneous

purchases)—t

value

purchases

18,703

1,797,087

8,173

______

'•

Nondurable

3,331,127

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK

EXCHANGE

15,161

1,934,766

7,887
16,576

(tons)

manufacturing
Durable goods

2,766,53".

and

manufacturing

turing

3,333,930

Sales

Other
Total

15,519

RYS. (Interstate

2,728,930

Short

164,778
243,281

1,951,582

goods

Estimated

752,220
1

33,519

170,918
253,203 '

253,784

AND

■..•

ERNORS

purchases.

14,277

32,581

•171,499
'

3,144
23,558

15,091

32,581

4,005

.'3,287
28,212

338,84

315,540

3,114
-

15,091

manufacturing

All

9O.60C

Nov.

—

Other

___

■

manufacturing

Payroll

452,06'

32,000

-Nov.

sales

Total

257,340

.Nov.

Short

3,114

3,287
28,212

All

-Nov.

transactions

Total

floor-

Other sales

'*U

(cwt.)

' Nondurable goods

376,71-

1,923,640

Nov.
off

purchases

Short

2,331,060

426,140

1,624,670

sales

transactions initiated

Total

2,010,170

Nov.

537.895

1,592,295

—

(pounds)

Employment

Other sales

4,375

561,932

_j:_

LABOR

All

18,212

Durable

-.Nov.

Sales

All

„

purchases-.

Short

4,377

;

"(barrels)

'October:

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

(tons)

4,113
2,732

1,732,125

__—_

(tons)

EMPLOYMENT

22.128

560,039

(bushels)

Pecans

■

64,739

17,857

2,732

(tons)

469,64

INDEX—

4,113

—

(cwt.)

(tons)

8,911

68,311

'-22,869-

17,881

(bushels)

323,3C

415,674 '

68,311
22,869

1,766,075

sugar

Cherries

296,03

112,764

10,564

(tons)

Cranberries

1949

Peaches

14,558

118,749

.10,564

•

(cwt.)

Apricpts

activity

orders

4.88

4.56

4.54

.Nov. 29

(tons).

Percentage

4.85

4.57

ASSOCIATION:

(tons)—,

Production

4.86

.Nov. 29

22,709

14,553

/L—-

(bushels)

(pounds)
Apples, commercial

-Nov. 29

Group.

Group

COMMODITY INDEX

Unfilled

beets

.Nov. 29

Utilities

NATIONAL

L_,

(tons)/*

Hops

.Nov. 29

MOODY'S

**:

21,495

118,749
5

___

for

4.49

Public

14,298

(pounds)

4.32

Industrials

579,178

(cwt.)

4.49

602,542

—_.

summer

—Nov. 29

Railroad

53,122

617,515

(Swt.)

:wt.)
(cwt.)

Total

—Nov. 29

Baa

53,363

—

T(cwt.)

Fall"

30,588

—_____—

timothy

summer

Aaa

and

Late

420,191

31,084

30,588
54,218

(pounds)

4.30
i

414,922

...

31,084

86.38

—Nov. 29

414,922
_

(cwt.)

84.55

88.40

184,020
1,073,982

wild

spring

20,682

215,468

1,178,085

(bales)

Late

36,155

___

grain

Early

87.86

215,468

bags)
(bushels)

Sweetpotatoes

Bonds

•4.361,170

1,178,085

_J___

pound

Winter

82.27

88.27

a—

Potatoes:

79.25

84.04

__:

(bushels).

Peanuts

AVERAGES:

corporate-

923,449
204,702

•->

36,155

______

clover

84.04

—Nov. 29

YIELD

Government

Average

86.24

—Nov. 29

Group

BOND

86.11

—Nov. 29

Public Utilities Group.

Industrials

MOODY'S

82.24

—Nov. 29

Group

•1,128,151

251,623

.___-

all, (tons) ______'
(ton's)._!___
alfalfa
(tons)

86.38

—Nov. 29
Railroad

1,368,233

1,116,610

—

(bushels)

Soybeans for beans

84.30

—Nov. 29

Baa

4,258,511

1,116,610

lespedeza (tons)
___•
Beans, dry edible (cleaned)
(100 lb. bags)
Peas, dry field (cleaned) (100 lb. bags)

82.44

-Nov. 29

Aaa

4,378,724
1,368,233
'

_.___

Hay,

101.3753

corporate

9,713,919

—

Hay,

PRICES DAILY AVERAGES:

Government

Average

thousands):

Hay,

24.700c

Nov. 23

—

(in

(bushels)

spring

(100

Hay,
Hay,

12.500c

—Nov. 23

at_

8,423,736
REPORTING

(bushels)

Cotton

13.OO0c

—Nov. 23

$755,000

_^_

(bushels)

Sorghum

34.675c

—Nov. 23

Louis)

BOND

29.600c

-Nov. 23

(primary pig, 99.5% ) at.

tin

MOODY'S

29.600c

—

(delivered)

Zinc

-Nov. 23

at—

(New York)

Lead

$1,263,000

OF AGRICULTURE—

(bushels)

Flaxseed
Rice

refinery

(bushels)'

$66.41
,

Electrolytic copper—
Domestic

$1,365,000

—

Nov.

spring

Oats

M. J. QUOTATIONS):

$378,500

COMMERCE):

CROP

—

DEPT.

(bushels)

Other

6.196c

.Nov. 22

ton)

gross

__—_:

(bushels)

Durum
.

.Nov. 22

lb.)

(per

$1,965,500

276

AGE COMPOSITE PRICES:

Finished

$921,500

YORK—

NEW

all

Winter
All

Nov. 24

INC..

omitted)

(DEPT.

all

Wheat,

DUN

BANK

PRODUCTION

Corn,

(in 000 kwh.)

output

GINNING

BOARD

ELECTRIC INSTITUTE:

Electric

L'Ju.

OUTSTANDING—FED¬

(000's

November

CROP

INDEX—FEDERAL RESERVE

AVERAGE

PAPER

RESERVE

Oct.

9,602,000

Nov. 19

;

___;

41,200,000

MINES):

(tons)

SALES

SYSTEM—1947-49

IRON

248,100,000

COTTON

OUTPUT

Bituminous

COMMERCIAL

187,800,000

Nov. 24

municipal

Pennsylvania anthracite (tons)

EDISON

Nov. 24

and

Federal

omitted)

$389,800,000

$348,100,000

——Nov. 24

construction-.

construction—.

Public

(000's

EXPORTS

CENSUS

—

AND

IMPORTS

Month

Sept.

omitted):
:

Volume 192

Number 6008 /,. The Commercial and Financial Chronicle

Eurofund Inc., Elects New

(2203)

NASD Districts

President

Nominating Group

Nominating committees have been
selected in each of the 13 districts
of the National Association
of Se¬

curities
.for

Dealers

submit

members to the

new

slates

associa¬

tion's

board of governors and to
the district committees.
Following
the committees

are

ter, Hunter, Prugh, Ball & David¬
son, Inc., Dayton; John S. Watter-:
son, Jr., Paine, Webber, Jackson
& Curtis,
Cleveland; and Jack R.
Staples, Fulton, Reid & Co., Inc.,
Cleveland.
District

#10

appointed for

(The

District

Columbia, Maryland, North Caro¬
and
Virginia)
Chairman:
District #1
(Alaska, Idaho, Harvey B. Gram, Jr.,
Johnston,
Montana, North Dakota, Oregon, Lemon &
Co., Washington. Mem¬
South Dakota
and
Washington), bers: Edward J. Armstrong, Steini
Chairman: William J.
Collins, Col¬ Bros. & Boyce, Baltimore; Joseph'
lins &
Co., Portland. Members: ,J. Muldowney, Scott &
Stringfel->
Richard H. Martin, Pacific North¬
low, Richmond; W. Olin Nisbet,;
west
Co., Portland;
George R. Jr., Interstate Securities
Corpora-;
Yancey, Murphey Favre, Inc., Spo¬ tion,
Charlotte; and Millard F,;
kane; Hugh R. Schlicting, Wm. P. West,
Jr., Auchincloss, 'Parker &,
Harper & Son & Company, Seat¬
Redpath, Washington.
;
/'
.
tle; and Jack E. Jones, Blanchett,
District #11 (Delaware, Penn-A
Hinton & Jones, Inc., Seattle.
sylvania, West Virginia and part'
District #2 (California, Nevada of New
Jersey) Chairman: Fred¬
and Hawaii) Chairman: Mark C.
eric P. Mullins, A. E. Masten &
El worthy,
Elworthy & Co., San Company, Pittsburgh. Members:'L.
each of the districts:

lina

Francisco.

Co-Chairman:

Jo'

French, Blyth & Co., Inc., Los An¬
geles. Members: Richard Lawson,

Lawson, Levy, Williams & Stern,
San
Francisco; Robert F. Mulvany, Irving Lundborg & Co., San
Francisco; and Ralph E. 'Phillips,
tJr., Dean Witter & Co., Los An¬
geles.
District #3

(Arizona, Colorado,
Mexico, Utah and Wyoming)

New

Chairman:

Bernard

Kennedy,

Bosworth, Sullivan & Co., Denver;
Members: Robert L. Mitton, Rob¬
ert L. Mitton

Investments, Denver;
Edward Hanifen, Hanifen, Imhoff
& Sanford, Inc., Denver; Orville
Neely, Merrill Lynch, Pierce, Fen&

ner

Eurofund

S. Sloan Colt, left, Chairman of the Board of
Eurofund,, Inc., has announced the election of
Hunter S. Marston, Jr., right to the office of

Director

President

seeks

the

investment

company,

capital appreciation through

company's
the

wr.icn

portfolio of European securities.
Russell Forgan,

are

map

and

diversified

He succeeds J.

terstate

the

General Partner

position he has held since
Director of Servel, Inc. and In¬

Glore, Forgan,

1953.

center, Senior Partner of Glore,

Committee.
Flagged- on
the locations of 88 companies in

Executive

Mr. Marston has retired
of

member

Which Eurofund has invested.

Hosts, .Inc.

Mr.

Marston

resides

Greenwich, Conn.

Forgan & Co., who will continue to serve as a

Smith Inc., Denver;
and
Haggerty, Lowell-Murphy &

John

Co., Denver.
District

Nebraska

(Kansas,

Oklahoma) Chair¬
Seltsam, Seltsam,
Hanni & Co., Inc., Topeka. Mem¬
bers: Hayward H. Hunter, George
Donald A.

man:

Baum
&
Company, Kansas
City; Mel M. Taylor, Semple, Ja¬
cobs1 & Co., Inc., St. Louis; Wil¬
liam B. Cochran, Milburn, Coch¬
ran & Company, Oklahoma
City;
and James H.

Private Money for

Public Enterprise

Missouri,

and

Ellis, Ellis, Holyoke

Co., Lincoln.

Paul

Close, Rambo, Close & KernIncorporated,
Philadelphia;Arthur F. Humphrey, Jr., Hulme,
Applegate & Humphrey, Inc.
er,

Pittsburgh;

H.
Sheldon Parker,
Kay Richards & Co., Pittsburgh;
and

William H.

W. Clark &

District
York

#12

and

part

Chairman:
Co.

Tennessee)

Chairman:

Ogden

Shropshire, Shropshire, F r a z e r
and Co., Mobile. Members: Joseph
P. Minetree, Steiner, Rouse and
Co.,
New
Orleans;
Edward
S.
Lewis, III, Lewis and Co., Jackson;
George H. Nusloch, Nusloch,' Baudean and Smith, New Orleans; and
Harold
B, Mayes, Hendrix and

Allen

Pierce

(Texas) Members:
Pierce, -Rauis c h e r,

Co., Inc./Dallas; Robert

M.' Ay res,

Corp.; (all of New York City.)
District #13 (Maine, Massachu¬
setts, New Hampshire, Rhode Is¬
land
and
Vermont)
Chairman:
•James H. Goddard, J. H.

Co., Inc. Members: Gilbert M.
Mears, G. H. Walker & Co.; Fred¬
erick H.
Foster, Lee Higginson
Corp.; Albert W. Tweedy, H. C.
Wainwright & Co.; and Irving E.
Gunn, Townsend, Dabney & Ty¬
son;
(all of Boston.)
•
.

Electro-Science

Acquires Interest y
Electro

today

(Dec.

Jr.-, Russ & Company,

Science

purchase
vertible
stock

Ward

Beebe,

of $139,000

Rawco

Pierce,

Houston; and
Grubbs, Merrill Lynch,
Fenner
&
Smith
Inc.,

.Houston.
District

(Florida,

Georgia,

Carolina

South

and part of Ten¬
Chairman: Alexander

Yearley

IV,

Humphrey

ESI
of

The

Co.,

Robinson-

Inc.,

Atlanta.

nation's

Bradford

and

District

Company,

Edward

Nash¬

(Illinois,

Indiana,

Michigan, Minnesota
Wisconsin)
Chairman:
L.
Iowa,

and

Ray¬

mond

Billett, McCormick & Co.,
Chicago. Members: Robert H. O'-

cated

South

727

Vice-President

The

ase

Manhattan

Clarke, partner of Lehman Brothers, financial
advisors to TVA, and G. O. Wessenauer, TVA

Bank

is shown making payment at offices of Bankers
Trust

Company, Trustee of the Authority. Look¬
ing on (left to right) are Brian P. Leeb, Senior

;

Epps Industries
Stock Marketed
California Investors, Xos Angeles,

publicly

Calif.,

Inc.

The
at

Nov.;

company

2332

stock

common

par

share.
38

which is located
Los Angeles,

St.,

Calif., is engaged in distributing
processing strip steel, pickling
and treating steel, and manufac¬

and

and square electric

turing round
welded

steel tubing.

proceeds, outstanding;
bank loans and notes will be reOf the net

payed,

and

balance

the

working

for

used

will be
and

capital

Charles

Parcells,
Jr.,
Detroit;
and
Charles
R.
Perrigo, Hornblower & Weeks, Chicago.
District #9 (States ^f Kentucky
and Ohio) Members: E. W. Battin,

general corporate purposes,
including the installation- of an

& Co., Inc.,

The

Ohio

mill.

Charles A. Parcells & Co.,

and The Northern Trust Company.

Power.

offered

30, 100,000 shares of Epps Indus¬

additional tube

olis;

'Dale F. Linch, Berwyn

Ex¬

Texas.

other

The
bonds were
sold
publicly by a nationwide group of banks jointly
managed by The Chase Manhattan Bank, Morgan
Guaranty Trust Co. of New York, Chemical
Bank New York Trust Co., C. J. Devine & Co.
Manager

Central

Richardson,

Woodard-Elwood & Co., Minneap¬

Valley Authority Series A power bonds took
place when investment representatives handed
check to Aubrey J. Wagner, (seated left) Gen¬
eral Manager of TVA.
John J. Ward, Assistant

one.'

Federally;

assets in excess'
Its offices are lo¬

$14,000,000.

Keef, The Marshall Company, Mil¬
waukee; Lawrence B. Woodard,
Paul

largest

with

companies,

at $3 per

Wulbern,
The
Pierce,
Carrison, Wulbern
Corp., Jacksonville.

Trust -Company,

Raw-

licensed small business investment-

tries,

Hugh D. Carter, Jr.,
Co., Atlanta; Malcolm M.
Manning, V. M. Manning & Co.,
Inc., Greenville; Einer Nielsen, J.

for

development'.}

registered

recently

the

Courts &

ville;

$300,000 for
additional 5%'

in its future

use

con¬

common

was

debentures

convertible

the

of 5%
and

Instruments Inc.;

of-

purchase

Members:

Also committed

the

Inc.

& LaValle,

Bryan

nessee)

Investors,
announced

debentures

pressway,

Bankers

Go^dard

Guthrie

Vice-President,

Bryce,
Ernest W.

Co.; and Orland K. Zeug-.
Stone & Webster4.'Securities

ner,

tonio;

Tennessee

Jerrold

ston &

Inc., San Antonio; W. Lewis Hsrt,
Funk, Hobbs & Hart, Inc., San An¬

$50,000,000

J. Nix, Riter

Clark, Dodge & Co.;
Borkland, Jr., Tucker, Anthony &
R. L. Day; Albert C. Purkiss, Wal-.

District >#6
Charles

for

(Connecticut, New
of New Jersey)

Members:

co's

Mayes Inc., Birmingham.

ceremony

Townsend, E.

District #5

(Alabama, Arkansas,
Louisiana, Mississippi and part of

Closing

Co., Philadelphia.

Company,

Columbus;
T. Moore

Louisville; W. R. Hun¬

Draper, Sears Branch
HYANNIS,
& Co. has
at

under
"D

•?

Mass.—Draper,
opened

North
the

Sears.

branch office

Street

Extension

management of Harold

(22C4)

The Commercial and Financial Chronicle

Securities

Now
ders.

the

large number of issues

Registration

Proceeds—About $1,300,000 for expansion of pro¬
facilities including the purchase of equipment,

with

awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
the

index

and

the

balance

for

capital. Office — New
Underwriter—Courts &

working

Savannah

Road, Augusta, Ga.
Co., Atlanta, Ga. (managing).

Dec.

on
the
basis of one new share for each eight
shares held with rights to expire on Dec. 14 at 3:30 p.m.
(EST). Price — To be supplied by amendment.
Busi¬
ness — The
company writes ordinary

offering dates.

life,

stock,
warrants, and
75,000 series II common stock purchase warrants, to be
offered in units, each unit to consist of two common
shares, one series I 5-year purchase warrant, and one
5-year series II warrant. Warrants are exercisable ini¬
tially at $2
ment.

common

share. Price—To be supplied by amend¬

per

Proceeds

For salaries

—

additional

personnel,

group life,
and group accident and health insurance in 13 states and
the District of Columbia. Proceeds—To be used to
repay
$1,481,006 of short-term indebtedness incurred in acquir¬

ing stock of Acme United Life Insurance Co., a new
subsidiary of the issuer, with the remainder for general
corporate purposes. Office—218 West Adams St., Jack¬
sonville, Fla. Underwriters—Merrill Lynch, Pierce, Fen-

Inc., New York City, and Pierce, Carrison,
Wulbern, Inc., Jacksonville, Fla. (managing).

Aug.

Underwriter—To be supplied by amendment.

be offered to

Built

American

the

26,

Income

1960

basis

filed

Life

NEW ISSUE CALENDAR

90,174 shares of
share

new

outstanding

^Admiral Benbow Inn, Inc.
21, 1960 (letter of notification)

Nov.

44,440 shares of

$300,000

common

stock

five shares held.
of

$6.25

Office

Underwriter

for
basis

(no par) not to exceed
subscription by holders of
of

one

new

for

each

Price—At-the-market, and

share.

per

—

the

stock

common

offered

maximum

Proceeds

Bellevue

James

—

Boulevard,

a minimum
working capital.

For

—

Reddoch

Memphis, Tenn.
&
Co., Memphis,

Tenn.
•

Certificates, each representing $900 of bonds
Price—$1,800 per unit. Proceeds
principally to originate mortgage loans and

snd 783 shares of stock.

them

carry

until

market

disposition. Office

Aircraft

210

Sept. 26, 1960 filed 265,500 shares of common stock, to
be offered by United Industrial Corp. to holders of UIC

Center St., Little Rock,

(H.

(Paine,

General

common on the basis of one Aircraft share for each 8
UIC Shares held. Price—To be supplied
by amendment.

issuer, wholly owned by UIC, is engaged

•

Ark.

land

and recreation park

amusement

196 acres of
Liberty, N. Y. Proceeds—For development of

near

the land. Office—55 South Main

Office—Cockeysville, Md. Underwriter—Eastman Dillon,

ing—Imminent.

Union

Securities

Co., New York
Offering—Indefinitely postponed.
•

All

American

common

of record Nov. 22

each

four

(managing).

held

class
common

the

the basis of

stock

(par
outstanding

one

new

with

rights to expire on
Dec. 7.
Price
To be supplied by amendment.
Busi¬
ness—The firm is engaged
primarily, under governmentsponsored contracts, in research, development, and man¬
ufacturing activities related to the aircraft, satellite, and
—

missile
poses.

fields.

Proceeds —For

general

corporate

pur¬

Office—Du Pont Airport, Wilmington, Del.

derwriter—Drexel &

—To

maintain

markets

working capital.

Office

in
—

selected

securities

for

and

1120 Connecticut Ave., N.

Washington, D. C. Underwriter—Allen, McFarland

W.,

& Co.

Offering—Expected in early January.
Allied

Bowling Centers, Inc.
Dec. 29 filed $750,000 of
sinking fund debentures and
800,000 shares of capital stock, to be offered in units of
;

$75

principal amount of debentures and 30 shares of
•tock. Price—$108 per unit.
Proceeds—For general cor¬
porate purposes.

Office—Arlington, Texas. Underwriter

—Rauscher, Pierce

Co.,

Inc.,

Dallas.

Note

—

This

offering has been postponed
•

Alloys Unlimited, Inc.

(12/15)
Oct. 14, 1960 filed
135,000 shares of common stock (par
10£), of which 75,000 shares are to be offered for the
r

of the
company and 60,000
count of the present holders
thereof.
account

plied by amendment.

for

the

ac¬

Price—To be sup¬

Business—The company manufac¬
tures certain components for such
semiconductor devices
as silicon and germanium
transistors, diodes and recti¬
fiers. Proceeds—For general
corporate purposes includ-

J?.g debt reduction. Office—21-01 43rd Ave., Long

Island

City, N. Y. Underwriters—Newburger, Loeb & Co. and
C. E. Unterberg, Towbin
Co., New York, N. Y.
American Consolidated
Mfg. Co., Inc.

Sept.

27,

common

1960
stock

Proceeds

For

(letter

(par 33V3

notification)
cents).

Price

•

—

advertising and promotion

receivable. Office—835 N. 19th
St.,
derwriter

Pa.

39,500

shares
per

share.

and accounts

Philadelphia, Pa. Un¬
Martin, Monaghan & Mulhern, Inc., Ardmore,
I

American

Cryogenics, Inc. (12/15)
Oct. 27, 1960 filed 150,000 shares of common
50 cents).
ness—The

stock (par
Price—To be supplied by
amendment. Busi¬
company and its subsidiaries make and sell

liquid and gaseous nitrogen and
oxygen, dental and
medical equipment, and various other
gases and cylin¬

$3 per

350,000 shares

to be publicly offered. Price—$3 per
ihare. Proceeds—To pay off
mortgages develop and im¬
prove

are

properties,

and

acquire

additional

real

estate.

42nd St., New York City. Underwriter—
Co., Inc., New York City.

Americana

Paddington

stores and a bowling
facility. Office — 855 Montauk
Highway, Oakdale, L. I., N. Y. Underwriter—Plymouth
Securities Corp., New York City.

Ampal-American Israel Corp.
Oct. 25, 1960 filed $5,000,000 of
7-year series 16% sink¬
ing fund debentures. Price—At par. Proceeds—For vari¬
ous business
enterprises in Israel. Office—17 East 71st

Street, New York City. Underwriter—None.

Higginson

Southern

25,

1960

ercise

'of warrants at from $16 to
$17.50 a share. The
10,000 shares are owned by Anderson-Nichols & Co., and
are subject to
purchase under options by three individ¬
uals at $7.50 a share. Business—1The
design, develop¬
and

manufacture of high speed printers and
high
paper tape readers for use with computers and
electronic data processing systems. Proceeds—To work¬
ing capital. Office — 150 Causeway St., Boston, Mass.

speed

Underwriter—None.

Standard

and

Co.

Corp.—

Securities

—

Putnam

Office

Hartford,
Co., Hartford, Conn,
—

(managing).
Apache Corp. (12/15)
*
~
Oct. 26, 1960 filed $4,000,000 of 6% convertible subor¬
dinated debentures, due Dec.
,1, 1975. Price
At par.
Business—Management of long-term risk capital invest.

Dillon,

Coffee

page

$252,000

Common
$300,000

Inc.---—

Co.)

150,000

Co.__

Union

-Common

________—Debentures

Securities-&

Co.)

Co
Sachs

Co.)

Security Systems, Inc
(Drexel

Co.)

———Common

100,000 shares

2:30

CST)

p.m.

(Bids

Kass;

Co.

10:00

(Minn.;

Bonds

CST)

a.m.

Common

—-

Simmons

Rubin

December 7

Atlanta Gas

.Common

100,000

Associates, Inc
B.

—

Northern States Power

Vacudyne

Common

100,000

Iowa Power & Light Co
(Bids

$50,000,000

—

(Goldman,

Globe

Inc.

Co.,

and

$200,000

Co.)

(Wednesday)

Light Co._

(Bids

11:00

EST)

a.m.

Bonds

$9 000,000

Chicago, Rock Island & Pacific RR.
Equip. Trust Ctfs.
Loral

1:00

Electronics
(Kidder,

Debentures

&
Co.;
Lehman
Brothers
Roland & Stone) $5,000,000

Electric

Potomac

$3,450,000

EST)

p.m.

Corp

Peabody

Model,

(Bids

Power
to

(Kidder,

Victor

Paint

Bonds

received)

Peabody

$40,000,000

&;Co.)

December
Brooks

...Common

112,760 shares

Co
&

Co.)

Common

...

Plohn

and

Standard Pressed Steel Co.——

130,000

(Thursday)

(James)

Co. Inc

(Lloyd

Haas

Units

Co.)

$450,000)

Industrial Hose & Rubber Co., Inc.(Schrijver

Koeller Air

Co.)

Common

$500,000

Products, Inc
(Lloyd

Units

Securities)

$200,000

Living Aluminum, Inc.—
(Arnold Malkan & Co.,

Inc.

Common

and

Sulco

Securities,

Inc.)

Long Island Plastics Corp
(The

December

James

$300,000

Common
$300,000

Co.)

(Monday)

Chemical

Chemtronic

Co
&

Common

Company,

Inc.)

$300,000

Corp.

Common

(Jay W. Kaufman & Co.) $400,000

Consumers

Power
(Bids,

11:30 "a.m.

EST)

Corp.

$35,000,000

Restaurants, Inc."

Garsite

(Westheimer

Bonds

Frisch's

180,000

Co.)

Common
Common

(Theodore

Arrin

Inc.)

Co.,

$300,000

Madigan Electronic Corp

Common

(McLaughlin, Kaufman & Co.) $467,500

New

Canaan

.Units

(Gidden,

Pall

Morris

Co.,

Inc.)

$202,000

Corp.

Class

(L.

Rothschild

Paper Co.,

(Hill,

Penobscot

(Coffin

(Amos

Russ

Co.)

Units
Grimm)

Fibre

Inc.)

Burr,

100,000

Debentures
$3,250,000

Common
&

Co.,

Inc.)

$500,000

Togs, Inc

—Class
Hammill

& Shell Homes

Securities

units

Inc

Treat

(Shearson,

Corp.;

80,000

Inc

Darlington

Chemical

Resisto Chemical,

Co.)

Gleich

150,000

Stock

Corp

Units

Co.

and

Roman

Johnson)

35,000 units

Tele-Tronics

Co.

Common

Moyer,

Fricke

French,

Inc.)

Telephone & Electronics Corp;—
(Equity

Securities

Ca.K

$300,000

-.Common

$264,900

•

'
_

United

International
(Kidder,

States

Fund

Peabodv

Francis

United

Continued

Co.)

(Tuesday)

Beneficial Finance

(Woodcock,

•

Common

Johnson

Laboratories,
(Putnam

(Aetna

working capital.

Class A Stock
250,000 shares

Dewey,

Common

50,000 shares

Corp.)
-.

and

December 6

(Eastman

EST)

a.m.

(Plymouth Securities Corp.)

Andersen

Inc.)

Co.,

36,498

Hentz & Co.)

11:30

Webber, Jackson & Curtis)

(Carroll

tools,

Lee

Vector Industries, Inc._

Standard

add

Common
L.

Telephone & "Telegraph Co.__Debs.

Instrument

(Paine,

—

Underwriter

$300,000

and

Laboratories, Inc

the present holders thereof. Price
To be supplied by
amendment. Proceeds—To reduce indebtedness, buy new

and

Inc.

Swingline, Inc.—_

•

Conn.

Inc.)

Co.,

Corp.

Bell

Patrician

Andersen Laboratories, Inc. (12/6)
Sept. 28, 1960 filed 150,000 shares of common stock, of
which 40,000 shares are to be offered for the account
of the issuing company and
110,000 shares, representing
outstanding stock, are to be offered for the account of

50,000

——Common

(Sandkuhl

filed

65,000 shares of common stock, of
which 55,000 are subject to
purchase on exercise of
warrants and 10,000 were issued to Putnam &
Co., Hart¬
ford, Conn. Price—The 55,000 shares are issuable on ex¬

ment

(Bids

Brothers

if Anelex Corp.
Nov.

Properties, Inc.

Proceeds—For debt reduction and construction of

„_____Common

Co.)

Corp.

(Charles

(12/28)
Oct. 27, 1960 filed
100,000 shares of common stock.
Price—$6 per share. Business—The operation of shop¬
ping areas and bowling establishments in Long Island,
N. Y.

Towbin

100,000

Tech

Common

120,000 shares

Inc.)

——Common

Blauner

(Bids

Lawrence Seaway Land Co.
!
Jan. 27 filed 538,000 shares of common
stock, of which

•

120,000 shares of
(par 10 cents) and 30,000 shares of common
stock (par 10 cents). Price—Of
120,000 shares, $2
per share; of 30,000 shares, 75 cents per share. Proceeds

—

American & St.

Office—60 E.

stock

(par 10 cents). Price

Co.,

Manufacturing Co., Inc

Maryland, Baltimore, Md.

A. J. Gabriel

Allen, McFarland & Co.
Sept. 8, 1960 (letter of notification)

stock

Unterberg,

211,000

——

Corp

(Kenneth

Development Corp.
(letter of notification) 100,000 shares of

$300,000

Curtis)

Corp.,

(Martinelli

common

Un¬

St., Liberty, N.,Y Un¬
Inc., New York City. Offer¬

share. Proceeds—For expenses in
constructing and oper¬
ating recreation centers. Office — 210 E. Lexington St.,
Baltimore 2, Md. Underwriter—Investment Securities Co.
of

Foam

Recreational

7, 1960
A

Co., Philadelphia, Pa. (managing).

Offering—Expected in January.

common

American

Sept.

Engineering Co.

Sept. 27, 1960 filed 85,918 shares of
10 cents), to be offered to holders
for

City

derwriter—M. W. Janis Co.,

——i—Common
Inc.)

Co.,

Jackson

Gabriel

for

Corp.
Aug. 22, 1960 filed 300,000 shares of common stock. Price
—$4 per share. Business—The company intends to oper¬
an

Wright &

Geophysics Corp. of America

(Lee

Common

$250,000

Co.

Common

Sales

American Playlands

ate

Webber,

(A.

Cook

in applied research and development in various technical
fields and works largely for the Department of Defense.

favorable

are

Underwriter—Amico, Inc.

Armaments, Inc.

Business—The

—

conditions

Securities

Co.

Foxboro

(Havener

—To be used

$200,000

Co.)

*———

(General

(Milton

American Mortgage Investment Corp.
April 29 filed $l,8OO,0UO of 4% 20-year collateral trust
and 1,566,000 shares of class A non-voting com¬
mon stock.
It is proposed that these securities will be
offered for public sale in units
(2,000) known as In¬

1....—Common
&

Baruch

Inc.

Does-More Products Corp.

Gremar

bonds

vestment

(Monday)

(R.

Cyclomatics

Debentures

—

$2,750,000

Co.)

(R.) & Co.—

New York. Statement effective Nov. 9.

—

Corp.__

December 5

Baruch

Units
160,000

Brothers)

Witter

(Dean

common on

each

*•)

Utilities

•

—

(Lehman

Western

5% shares held.
amendment. Proceeds—For

for

Washington, D. C.

Common
$300,000

Inc.)

Co.,

(Del E.) Corp

stock, to

common

supplied by
general corporate purposes. Office—5th and Franklin,
Waco, Texas.
Underwriters—Ladenburg, Thalmann &
Co. and Lee Higginson Corp., both of New York
City
(managing). Note—This stock is not qualified for sale in

—

Webb

Glas

Industries, Inc.
Aug. 29, 1960 (letter of notification) 150,000 shares of
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds
For acquisition and development of land and
operating capital. Office—1201 W. 66th St., Hialeah, Fla.
Underwriter
American Diversified Securities, Inc.,

Price—To

(Friday)

(McClane

(C.

Insurance Co.

the holders of the
one

ISSUE

REVISED

December 2

Smith

ner

liquidation of debt, research, and the balance for work¬
ing capital. Office—551 W. 22nd Street, New York City.
Adler

ITEMS

•

Dial-A-Disk, Inc

American Heritage Life Insurance Co.
Oct. 24, 1960 filed 354,157 shares of common
stock, being
offered to holders of the
outstanding common of record

detailed
items reflect the expectations of the underwriter
but are not, in general, to be considered as firm

• ACR Electronics
Corp.
Sept. 28, 1960 filed 150,000 shares of
75,000 series I common stock purchase

SINCE

•

accompanying

ADDITIONS

if INDICATES

duction
NOTE—Because

Thursday, December 1, 1960

...

Shell

(Hayden,

Pont

Ltd.!

Co.;
&

Co.)

Co.

and

$12,500,000

Homes, Inc.——

Stone

Co.)

25,000

units

„

Common

,i_

Bache

—Units
.

Volume 192

Number 6008

r.r

llrH

(Equity Securities Co.)

Winn-Dixie

Commercial and Financial Chronicle

Pierce,

•,

December

(Tuesday)

(Bids

if,,'

received)

(Merrill

Lynch,

Still-Man

Pierce,

duPont

December

(Cortland

(111

(Hill,
(Lehman

Ritter

December

(Newburger,

Co.

and

|i ■:'•.«

Apache Corp.

r'.-ff

(Paine.

Co.)

Unterberg,

and

Piper,

(Arnold,

Wllkens

Co.

Inc.)

Lynch,

Pierce,

Co., Inc.)

Dowd

December

$400,000

Smith,

Inc.)

Co.,

Co.)

Inc.)

155,000

Valdale
N.

(B.

Westminster

and

Co.)

(Kidder,

Peabody

Co.)

Fuller

Co.)

Common

Harris

Barnes

Co.)

57,986

shares)

Capital

4,000,000

Goldman

—Capital

$299,600

(Bids

Co.

600,000

-Bonds
CST)

a.m.

$10,000,000

11:00

—Bonds
EST)

a.m.

$7,000,000

Common

received)

$11,500,000

(Monday)

General Bowling Corp.—

$279,999

Inc.)

(H.

Inc.)

Simmons

Co.,

Common

Inc.

Co.)

and

McMahon,

Lichtenfeld

$1,000,000

January 24 (Tuesday)
Otter Tail Power

$300,000

March 15

Inc.—

Common

Corp.)

Rochester

$600,000

(Friday)

June 13

Co.)

L. C. Wegard &

r, ■

Bonds

received)

$6,000,000

$8,000,000

(Wednesday)

Gas

Electric

Corp

received)

Bonds

$15,000,000

(Tuesday)

Common

—

Walker & Co.;

Sherman

Gulf States Utilities Co.

Common

Co.,

Corp

(Rodetsky, Kleinzahler,
and

Sachs

(Tuesday)

(Bids

January 23

Securities

Controls

136,000

Kansas Gas & Electric Co

(Wednesday)

Properties,

December

Circle

Co.)

(Tuesday)

(Plymouth

$300,000

Common

and

(Bids

Co.)

$299,950

Common

10:00

January 17

Limited

December 28
Americana

Common

Inc.)

Light Co

(Bids

Common

Co.,

(Wednesday)

Iowa Power &

(Friday)

150,000

(Tuesday)

January 11

Common
&

.Co.)

Corp

Weld & Co.

$300,000

____

60,000

Securities

Books, Inc.

(Bids

Common

Simmons

Fund, Inc

(David

Capital

$2,000,000

Resources, Inc.__;

Developers

Common

Co.

(White,

$750,000

Co., Inc
Rubin

Union

December 27

Palm

Stancil-Hoffman Corp
Securities

Co.)

Common

Securities

| (Preferred Investments, Inc.) $1,500,000
Coast

and

Co.

—Debentures

(Wednesday)

(B.

$900,000

Preferred Risk Life Assurance Co

(Pacific

Co.)

(Monday)

January 10
Pocket

Common

International Mosaic Corp

Common

Biddle

60,000
;

(Schwabacher

$564,900

Inc.)

Co.,

Inc.)

(Thursday)

$2,000,000

Mortgage Guaranty Insurance Corp
(Bache

(S.

Debentures

Fuller

Dillon,

Common

Mohawk Insurance Co
(R.

(Eastman

$240,000

Common

Fenner

Common

Yarnall,

Co.,

Union

Bell Electronic

300,000

Co.)

Measurements Corp

$500,000

Co.)

Marsh Supermarkets, Inc.-(Merrill

Investors

Burnside

Geotechnics &

Robinson

and

Inc.)

Co.;

(Blaha

Common

December

Radar

Common

California-Pacific Utilities Co.

--Common

Coral Aggregates Corp
(Peter Morgan &

(S.

Jaffray

Carolina Metal Products Corp

January 5

January 9

Corp

Co.,

Dillon,

130,000 shares

Speedry Chemical Products, Inc.—

$4,000,000

Co.,

Coast

(Willis

Common

Curtis,

Hopwood)

Zeiff

(Stern,

Schramm

•

(Eastman

(Tuesday)

Speedry Chemical Products, Inc

150,000

Inc.)

Gas Corp

$4,500,000

Brothers)

International

Debentures

Jackson
&

Co.)

Towbin

___

Webber,

Units

South Central Natural Gas Corp

Arway Manufacturing Corp

Reynolds & Co.,

100,000

units

Debentures

(East

Cryogenics, Inc.__„
(Courts

Inc
54,000

Chematomics, Inc.

and

Peabody & Co.)

Weld

Southwest

Inc.)

..Common

(Wednesday)

Stroud

Common

Brothers

(S.

Common

135,000

American

Co.,

Aeronautical Corp

(White,

Co., Inc

Canaveral

(Thursday)

Loeb

National

by Paine, Webber,
Marache & Co.)

Granbery,

& Pharmaceutical

Thompson

December 20

l_-Common

Investing Corp.; Rothenberg, Heller & Co. and
Joseph Nadler & Co., Inc.) $225,000

Alloys Unlimited, Inc

llii
■E^

--Common
and

(Wednesday)

tec
|€

January 4

;

Revlon, Inc.

Designatronics, Inc.

Cove Vitamin

$25,000,000

Class A

150,000

Co.)

$2,000,000

Co.)

78,955

Inc.)

(Kidder,

■.*,'<•

Granbery,

Preferred

Smith,

and

Inc

Curtis

(Lehman

i\?2

Curtis

stockholders—Underwritten

Jackson

$7,755,000

Manufacturing Corp.-.

(Francis
y'.o:<!
fe.-t

Fenner

Midland-Guardian

X> i

•*»

»•

;

„

Debentures

Jackson

Marache &

Co.,

'•

•

„

(Monday)

Webber,

(Offering

-Equip. Trust Ctfs.

Public Service Electric & Gas Co

fif

,,|h

Co., Inc.--

(Paine,

Bowll-Mor

Louisville & Nashville RR

"'Ji

B,owl-Mor

Common
406,000

December

Common

Inc.)

(2205)
4

$242,670

Smith,

Fenner &

•••*!

■'

Stores, Inc

(Merrill Lynch,

■

the

•

Wilier Color Television System, Inc

is V

■i

/ " \ "

Virginia Electric & Power Co

Co.

(Bids

$285,000

received)

Bonds

$30,000,000

$35,000,000

Continued from page 32

tawc''".

Bal-Tex Oil

?wo!

Co., Inc. :
17, 1960 (letter of notification) 300,000 shares of
class A common stock. Price—At par ($1 per share).
Proceeds—For expenses for development of oil proper¬
ties. Office—Suite 1150, First National Bank Bldg., Den¬

June

ments

oil, and real estate ventures, and also in
Proceeds—For debt reduction, working
capital, and to buy a small oil producing company.
Office—523 Marquette Ave., Minneapolis, Minn. Under¬
writers—Paine, Webber, Jackson & Curtis, New York
City and Piper, Jaffray & Hopwood, Minneapolis, Minn.
gas,
funds.

mutual

•

Arway Manufacturing Corp. (12/15)
15, 1960 (letter of notification) 120,000 shares of

Nov.

stock

common

Business
and

trays.

Office

i.l

—

(par

cents).

Price

—

Manufacturers of plastic table

Proceeds—For

1041

general

per

share.

cloths, mats,

corporate

purposes.

Utica

Avenue, Brooklyn, N. Y. Under¬
writer—Stern, Zeiff & Co., Inc., New York, N. Y.
•

—

Associated Oil & Gas Co.

exploration and production of oil and gas. Proceeds—To
selling stockholders. Office—1410 Bank of the Southwest

Bldg., Houston, Texas. Underwriter—None.
(12/71

Nov. 1, 1960 filed $9,000,000 of first mortgage bonds, due
1985. Price—To be supplied by amendment. Proceeds—
To

reduce

bank

loans

•

Colo. Underwriter—L. A. Huey & Co., Denver, Colo.

Baruch

incurred for

construction, which
are expected to aggregate
$10,200,000 at the time of the
offering. Office—Atlanta, Ga. Underwriter—To be de¬
termined by
competitive bidding.
Probable bidders:

White, Weld & Co. and Kidder, Peabody & Co. (jointly),
Shields & Co.; Equitable Securities Corp. and Eastman

100,000 shares of
$2 per share.
the SEC,
and a member of the NASD. Proceeds—To take positions
and maintain markets in securities, participate in underwritings, and the balance for working capital. Office—
1518 K St., N. W., Washington, D. C. Underwriter—Same.

11:00

a.m.

for working

capital. Office—2450 Huntington Drive, San
Marino, Calif. Underwriters—Kidder, Peabody & Co.,
New York City, and Wagenseller & Durst, Inc., Los An¬
geles, Calif. Offering—Expected in early January.
^ Avery Oil Co.
Nov. 21, 1960
(letter

•

of notification)

50,000 shares

stock (par 10

Monroeville, Pa.
•

Avionics

Underwriter—None.

Investing Corp.

July 12, 1960 filed 250,000 shares of capital stock (par
$1). Price — $10 per share. Business — The issuer is
a closed
end non - diversified management investment
-

Proceeds—For investments in small business
fields, with a proposed
in any one such enter¬
prise.
Office — 1000 - 16th Street, N. W., Washington,
D. C.
Underwriter—S. D. Fuller & Co., New York City.
Offering—Temporarily postponed.

company.
concerns

in avionics and related

limit of $800,000 to be invested
*•

Finance Co.

Beneficial

Nov.

ing company with subsidiaries engaged primarily in the
loan

added

and

sales finance

business. Proceeds—To

the general funds for

the reduction of short-

term bank loans. Office—50 Church

St., New York City.
Dillon, Union Securities & Co.,
(managing).

Underwriter—Eastman
York

City

Manufacturing Co.
(letter of notification) 32,000 shares of com¬
mon stock (par 50 cents).
Price—$5 per share. Proceeds
—For lease of a building and operating capital.
Office
—10915 N. Burgard, Portland, Ore.
Underwriter—Auld
Oct. 24, 1960

—

aging).
Bradford

Oct.

Pools, Inc.
filed 160,000

1960

shares of class A common
stock, with stock purchase warrants attached, to be of¬
consisting of five shares of stock and one
warrant. Price—$10 per unit. Business—The construction,
sale, and installation of pools in New Jersey and neigh¬
boring states. Proceeds—For general corporate purposes,
including working capital.
Office — 245 Nassau St.,
Princeton, N. J. Underwriter—R. A. Holman & Co., Inc.,
New York City. Offering—Expected in late December.
24,

fered in units

(James)

& Co., Inc. (12/8)
$400,000 of 12% subordinated de¬
bentures, due 1980, 50,000 shares of common stock, and
warrants for the purchase of 50,000 common shares, to
be offered in units consisting of $400 of debentures, 50
common shares, and warrants for the cash purchase of 50
shares. Price—$450 per unit. Business—The retail sale
in two Bronx, N. Y., stores of furniture, appliances,
cameras, photo supplies, and related items.
Proceeds—
Oct.

24,

1960

filed

To reduce accounts

for

payable to factors, with the balance
working capital. Office—542 E. 138th Street, New

York

City.

Underwriter—Lloyd Haas & Co., New York

City.

(12/6)

filed $50,000,000 of 20-year debentures.
supplied by amendment. Business—A hold¬

1960

Price—To be

Newton Road, Littleton, Mass.
Under¬
Paine, Webber, Jackson & Curtis, and Gran¬
bery, Marache & Co., both of New York City (man¬
—

Brooks

shares of common stock, of
86,000 shares are to be offered for the account
of the issuing company and 50,000 shares, representing
outstanding stock, are to be offered for the account
of the present holder thereof. Price—To be supplied by
amendment. Business—The company, which was organ¬
ized in May 1959, is a distributor of electronic parts and
equipment manufactured by others. Proceeds—For in¬
ventory and to carry accounts receivable. Office—306 E.
Alondra Blvd., Gardena, Calif. Underwriter — Schwa¬
bacher & Co., San Francisco, Calif.

Co., Portland, Oreg.

•

Brothers

Chemical

Co.

(12/12)

of notification) 100,000 shares of
(par 10 cents).
Price — $3 per
share.
Business—Manufacturing chemicals. Proceeds—
For
general corporate purposes.
Office — 575 Forest
Aug.

class

(letter

1960

common

stock

Street, Orange, N. J.
Underwriter—Sandkuhl & Com¬
Inc., Newark, N. J. and New York City.

pany,

Finance Corp.

(letter of notification) 195,000 shares of
(par 20 cents). Price — $1.50 per share.
Proceeds—For business expansion. Office—1800 E. 26th
St., Little Rock, Ark. Underwriter—Cohn Co., Inc., 309
N. Ridge Road, Little Rock, Ark.
Ajig.

1960

lommon

•

^Bowling & Construction Corp.

stock

California-Pacific

Utilities

Nov.

Nov. 21, 1960 filed 57,986 shares
stock. Price—To be supplied by

stock.

28, 1960 filed 120,000 shares of class A common
Price—$5 per share. Business—The building, leas¬
ing and operation of bowling centers. Proceeds — For
working capital. Office—26 Broadway, New1 York, N. Y.
Underwriter
Arnold Malkan & Co., Inc., New York
City (managing).

Co.

(12/21)

of outstanding common

amendment. Proceeds—

selilng stockholders. Office—550 California St., San

Francisco,
Securities

Calif. Underwriter — Eastman Dillon, Union
& Co., New York, N. Y.

—

•

cents). Price—$1 per share. Pro¬
ceeds—For working capital. Office—409 Colonial Drive,
common

(1/9)

Office

writers

Business

Corp.

—

broker-dealer with

Bonneville

Avery Adhesive Products, Inc.
Nov. 18, 1960 filed 250,000 shares of common stock (par
$1), of which 100,000 shares are to be offered for the
account of the company, and 150,000 outstanding shares
are to be offered for the account of selling stockholders.
Price—To be supplied by amendment.
Business—The
manufacture of pressure-sensitive labels.
Proceeds —
Approximately $1,080,000 will be used to redeem the
outstanding 5% preferred stock, and the balance will be

/•J

which

(EST) 19th floor, 90 Broad St., New York City.

12, 1960 filed 136,000

New

Electronic

Bell

mation

Scheduled for Dec.

(12/5-9)

Co.

issuer

Business—The

small

—

(letter of notification)
(par 75 cents). Price

stock

common

Dillon, Union Securities & Co. (jointly); Halsey, Stuart
& Co. Inc.; Stone & Webster Securities Corp.; First Bos¬
ton Corp. Bids—Expected to be received on Dec. 7 up to
11:00 a.m. (EST) at 90 Broad St., New York City. Infor¬
Meeting

(R.)

20, 1960

Sept.

Oct.

Nov. 23, 1960 filed 107,317 shares of outstanding capital
stock. Price—At the market. Business—The acquisition,

Atlanta Gas Light Co.

ver,

field.

Bowl-Mor

Co., Inc. (12/19)
Oct. 28, 1960 filed $2,000,000 of 6% convertible subordin¬
ated

debentures,

amendment.
Newtown

due

Proceeds

Road,

1975.
—

Price—To

supplied

For working capital.

Littleton,

Mass.

Office

by
—

Bowl-Mor

Co.,

Inc.

(12/19)

1960 filed 78,955 shares of common stock, to be
holders of the outstanding common on the
basis of one new share for each 10 shares held. Price—
Oct. 25,
offered

To be

supplied by amendment. Business—The company
pin-sitting machines for various types
of bowling games. Proceeds—For working capital and for
costs of the company's entry into the "tenpin" bowling

manufactures

Chibougamau

Mines, Ltd.

—The

company

owns

and

works

mining

properties.

general funds of the company. Office—
St.. Toronto. Canada. Underwriter—None.

Proceeds—For
55 Yonge

Underwriters—Paine,

Webber, Jackson & Curtis and Granbery, Marache & Co.,
both of New York City (managing).
•

Campbell

Oct. 14, 1960 filed 305,392 shares of common stock to be
offered to warrant holders. Price—$4 per share. Business

•

Canaveral

International

Corp.

(12/20-30)

Aug. 12, 1960 filed 300,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—•
Land sales and development. Proceeds—$150,000 for ac¬
counts payable, $335,000 for mortgage and interest pay¬
ments, $250,000 for advertising, $250,000 for development
costs and $290,000 for general working capital. Office—*
1766 Bay Road, Miami Beach, Fla.
Underwriter — S.
Schramm & Co., Inc., New York City.
Continued

page

•4

The Commercial and Financial Chronicle

(2206)

Continued from page

Commerce Oil

Refining Corp.
16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 ana 3,000,000 shares of common stock to be

warrant. Price—To be supplied by amendment. Business

Dec.

•

Caribbean

American

Corp.

Sept. 14, 1960 filed 459,500 shares of capital stock. Price
—$2 per share. Business—Caribbean real estate. Pro¬
ceeds— For general corporate purposes.
Office — 615

Bldg., 15th & Chestnut Sts., Philadelphia, Pa.
& R. A. Miller & Co., Inc., Phila¬

Robinson

Underwriter—R. P.

delphia, Pa. Note—This statement was effective Nov. 16.
Sept. 28, 1960 filed 140,600 shares of common stock.
Price—$5.25 per share/Proceeds—For investment in land

development of a site in Atlanta,

general corporate purposes.

for

balance

the

and

Ga.,

Office—4358 Northside Drive, N. W., Atlanta, Ga.
derwriter—To be supplied by
•

(12/15)

Products Corp.

Metal

Carolina

Un¬

amendment.

Sept. 28, 1960 filed 100,000 shares of common stock (par
$1). Price—$5 per share. Proceeds — Repayment of in¬
debtedness, machinery and equipment, and the balance
for working capital. Office — 2222 S. Blvd., Charlotte,
N. C. Underwriter—Arnold, Wilkens & Co., New York
City.
•

■

—

Century Acceptance Corp.

purchase of 80,000 shares of regular common shares.
The debentures are to be offered at par, and in units of
$500 debenture with warrants for 40 shares. Proceeds
—For working capital and general corporate purposes.
Office—1334 Oak Street, Kansas City, Mo. Underwriter
—A. G. Edwards & Sons, St. Louis, Mo. (managing). Of¬
one

fering—Expected in December.
Nov.

which

filed

1960

188,300

175,000 shares

(12/20)

are

of common stock, of
to be offered for public sale,
shares

and the

be supplied by

•

Consolidated Realty Investment Corp.

April 27 filed 2,000,000 shares of common stock. Price—
Proceeds—To establish a $250,000 revolving
fund for initial and intermediate financing of the con¬
struction of custom or pre-fabricated type residential ox
commercial buildings and facilities upon properties to
be acquired for sub-division and shopping center devel¬

$1 per share.

Underwriter—The

Ark.

common

Oct.

Underwriters—Lehman

Brothers, New York City, and
Jaffray & Hopwood, Minneapolis, Minn, (man¬
aging. Offering—Indefinitely postponed.

Piper,

5%%

Dalto

March

Cooperative Association
of 5W>%, 25-year subor¬
indebtedness, 320,000 shares of

certificates

preferred stock, 40,000 shares of 4%

each

second pre¬

local

for

farmers'

cooperative

associations

mid-Western

East

42nd

Street,

New York

City, Underwriter—
East Coast Investors Co., New York City.
Chemonics Corp.
Oct. 17, 1960 (letter of

notification), 100,000 shares of

common
stock (par one cent).
Price — $3 per share.
Proceeds—For general funds and working capital. Office
—1827 N. E. 144th St., North Miami, Fla.
Underwriter—

To be

supplied by amendment.

• Chemtronic
Corp. (12/12)
Sept. 2, 1960 filed 200,000 shares of common stock (par
10 cents). Price—$2 per share. Business—The company

makes

and

sells

miniature

electrolytic capacitors. Pro¬

ceeds—For general corporate
purposes,

including the re¬
payment of bank loans and the addition of technical per¬
Office—309

sonnel.

11th

Ave., South, Nashville, Tenn.

Underwriter—Jay W. Kaufmann & Co., New York City.
•

Circle Controls Corp.

Oct.

28,

(12/30)
(letter of notification) 95,000 shares of
stock
(par 10 cents).
Price — $3 per share.
Manufacture
and
rebuilding of electronic,

1960

common

Business

—

electro-mechanical and mechanical controls.

Proceeds—

For general corporate purposes and
fice—204 S. W.

Boulevard,
—Rodetsky, Kleinzahler,
N. J.; L. C. Wegard & Co.,
man & Co., New York, N.

working capital. Of¬
Vineland, N. J. Underwriters
Walker & Co., Jersey City,

Trenton, N. J. and L. D. Sher¬
Y.

Circle-The-Sights,

Inc.
shares of common stock and $330,000 of debentures (10-year 8% redeemable). Price—For
stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
March 30 filed 165,000

service.
Click

Nov.

common

Office—Washington, D. C.

Underwriter—None.

Grace

1960

(letter of

notification)

100,000 shares of
stock (par 10 cents). Price—$3 per share. Busi¬

ness—Manufacturers of household chemicals. Proceeds—
To go to a

selling stockholder. Office—601 S. Columbus
Ave., Mt. Vernon, N. Y. Underwriter—John R. Boland &
Co., Inc., New York, N. Y.
Coastal

Acceptance Corp.
3, 1960 (letter of notification) $100,000 of 10-year
registered series notes, to be offered in denomina¬
tions of $100 to $1,000 each. Price—At face value. Pro¬
Oct.

chester,

Underwriter

—

Shontell

St., Man¬
Varick,

•

Coburn
value

Credit Co., Inc.
18, 1960 filed 50,000 shares of common stock (par
$1).
Price—$4 per share.
Business—Consumer

sales finance business.
purposes.

N. Y.

Proceeds—For general corporate
Office—53 N. Park Avenue, Rockville Centre,

Underwriters—Brand, Grumet & Seigel, Inc. and

Kesselman & Co., Inc., New

York, N. Y.

Offering—Ex¬

pected in early January.

New York

•

are

to be offered for

selling stockholders. Price—To be sup¬
plied by amendment. Business—Originating and servic¬
ing loans secured by mortgages on real property. Pro¬
Los

Angeles,

Calif.

Office—5856 Wilshire Bou-

Underwriter — Mitchum,
Templeton, Los Angeles, Calif, and J. A. Hogle
& Co., Salt Lake City, Utah.

Jones &

electronic

equipment.

For

purposes.

payable, and for general corporate pur¬
Office—1221 E. Keating Avenue, Muskegon, Mich.

Dial-A-Disk,

share.

Proceeds—For

the

26 Broadway. New York

sale

—

Inc. (12/2)
-i
(letter of notification in Atlanta, Ga. SEC office)
150,000 shares of 50 par common stock. Price — $2 per

and

—

—North

rock.

Miami, Fla.

merchandising

a new

and

electronic device.

sale

Office

Underwriter—McClane & Co., Inc.,
City.

Proceeds—For

equipment, working capital, and the re¬
tirement of indebtedness, with the balance for general
corporate purposes. Office—7200 Coral Way, Miami, Fla.
Underwriters—Peter Morgan & Co., New York City, and
Robinson & Co.. Inc.. Philadelphia, Pa.,
Cove Vitamin & Pharmaceutical

Inc.

(12/19-23)

Sept. 30, 1960 filed 108,000 shares of common stock (par
50 cents), and five-year warrants for the purchase of
an additional 54,000 shares of common
stock to be of¬

Diketan

Laboratories, Inc.
Sept. 30, 1960 (letter of notification)
common

stock

To increase

(par $1). Price—$2

inventory,, purchase

search and

new

ital.

—

Underwriter
<

equipment, for

re¬

development and working capWilshire Blvd., Beverly Hills, Calif.

9201

—

new

150,000 shares of
share. Proceeds—

oroduct

Office

per

Holton, Henderson & Co., Los Angeles,

Calif.
•

Does-More

purchase of one share. Price
To be
supplied by amendment. Business—Mail order marketing
of vitamins through department stores. Proceeds — To
implement the company's merchandising plan and for
working capital. Office—26 The Place, Glen Cove, L. I.,

Products Corp.
(12/5)
(letter of notification) 75,000 shares of
common stock
(par 10 cents). Price—$4 per share/Pro¬
ceeds
To pay notes payable, purchase inventory, for
purchase of die and equipment and additional working
capital. Office—201 W. Semmes St., Osceola, Ark. Un¬

derwriter

fered in

units, each unit to consist of two shares and
for the

Y. Underwriter

^ Cowles

Oct.

—

Chemical

•

Co.

Business—The

production
of high purity chemicals for industrial

and

distribution

use, primarily by
expansion and construction.

12,

1960

—

Hill, Thompson & Co., Inc., New

—

York, N. Y.

laundries.

stock, of which 50,000 shares

corporate

intends

have

} levard,

(12/15)

extraction

phonograph records with

amendment.

attached warrant for the purchase of 50 shares
of common stock. Also filed were
60,000 shares of com¬

Business

Aug. 25, 1960 filed 100,000 shares of common stock (par
10 cents). Price—$4 per share. Business—The
compapy

in the

.*•>

Nov. 2

29, 1960 filed $2,500,000 of convertible subordinated
debentures, due Dec. 31, 1980. Price—To be supplied by

Underwriter—To be supplied by amendment.

engage

area

sporting

accounts

poses.

Road, Maple Heights, Cleveland 37, Ohio. Unde"
writer—Goldman, Sachs & Co., New York City (mana;

York

Detroit Tractor, Ltd,
May 26 filed 1,375,000 shares of class A stock. Of this
stock, 1,125,000 shares are to be offered for the com¬
pany's account and the remaining 250,000 shares are to
be offered for sale by the holders thereof. Price—Not to
exceed $3 per share.
Proceeds—To be applied.to the
purchase of machine tools, payment of $95,000 of notes
and

side

$1,000,000 of 6%% subordinated sink¬
ing fund debentures, due 1976, each $1,000 debenture to

ceeds—For working capital.

•

Nov.

Colwell Co.

the account

—

Corp.

New

appliances,

•
Desigrcatrcnics, Inc. (12/14)
Sept. 28, 1960 (letter of notification) 100,000 shares of
common stock
(par 10 cents). Price — $2.25 per share.

com¬

(12/6-7)

Coral Aggregates

electrical

Office — 199 Sackett St.,
Brooklyn, N. Y.
Underwriters — Cortlandt Investing
Corp.; Rothenberg, Heller & Co., Inc. and Joseph Nadler
& Co., Inc., New York, N. Y.

Wholesale and retail grocery business. Pro¬
ceeds—To three selling stockholders. Office—16501 Rock-

ing).

metropolitan

Business—Manufacturers

Oct. 19, 1960 filed 100,000 shares of outstanding common
stock (par $1). Price — To be supplied by amendment.
Business

Development of vacuum
For acquisition of land
factory; purchase of new machinery
and tooling; inventory and working capital. Office—3163
Adams Ave., San Diego, Calif. Underwriter—None.
-

■

Cook Coffee Co.

Nov,

Inc.

and construction of

Third
&

Design,

—$4.50 per share.

go to selling stockholders.
Office —120 S.
St., Memphis, Tenn. Underwriter—J. C. Bradford
Co., Nashville, Tenn. (managing).
—

the

various

system components. Proceeds

■

—

ceeds

record

and

Delta

Busi¬

Purchasing retail instalment sales contracts and
making direct loans secured by personal property. Pro¬
ness

sells

general

Corp.
100,000 shares of outstanding

Sept. 28, i960 filed 100,000 shares of capital stock. Price

Investment

10, 1960 filed

convertible sub¬

being

1975,

apparel.
Proceeds — For general corporate
including fixtures and inventory for two new
Office—215 Fourth Avenue, New
York City.
Underwriter—Amos Treat & Co., Inc., New
York City (managing).
"

Bankers Trust Co., 16 Wall St..

stock. Price—To be supplied by amendment.

mon

due

retail discount centers.

City, 12th floor.

Continental
Nov.

purposes,

12 up

a.m.,

working

Business—The company operates a chain of 29

stores

goods

(12/12)

(jointly); Morgan Stanley & Co.; The First Boston
Corp., and Harriman Ripley & Co., Inc. Bids—Expected

Nov. 18, 1960 filed

mon

retail

& Co.

for Dec. 9 at 11:00

debentures,

stockholders

interest.
which

outside of Greater Detroit.
Office—212 West Michigan
Ave., Jackson, Mich. Underwriter — To be determined
by competitive bidding. Probable bidders: For bonds—
Halsey, Stuart & Co. Inc.; White, Weld & Co., and Shields

Ave., New York City.

additional

offered to its
pursuant to
preemptive rights, with rights to expire on Dec. 14 at
3:30 p.m. (EST). Price—$100 per debenture plus accrued

Underwriter—None.

to 11:30 a.m., at 300 Park
Information Meeting—Scheduled

and

Davega Stores Corp./
<
1960, filed $1,500,000 of 6Vz%

common

facility expansion

continuing expansion and improvement of the company's
electric and gas service facilities in a 65-county area

Dec.

notes

shares for

Office—Norwood, N. J. Underwriter—Sterling,
& Co., 50 Broad St., New York City. Offering—

ordinated

of $35,000,000, maturing in 1990 to be sold for the best
price obtainable but not less favorable to the company
than a 5%% basis. Proceeds—To be used to finance the

new

share. Proceeds

per

21, 1960 filed first mortgage bonds in the amount

to be received

retirement

Price—$1.25

Sept. 7,

several

warrant

Manchester, N. H.
Nov.

Kansas City, Mo.

Consumers Power Co.
Oct.

ceeds—For working capital. Office—36 Lowell

For

held.*

Indefinitely postponed.

improvement, with $1,739,600 to be used for the
of maturing certificates of indebtedness and
redemption prior to maturity of such certificates and
the 5V2% preferred stock. Office—3315 N. Oak Traffic-

•

Chemical Corp.

—

then

the

capital.

and

working capital and research and development. Office—
122

Proceeds

States.

431,217 shares of common stock to be
subscription by holders of such stock of

for

—For

stock, and 1,000 shares of common stock. Prices—
certificates of indebtedness, 100% of principal
amount, and for the common stock and both classes of
the preferred stock, $25 per share. Business—The asso¬
ciation is a cooperative wholesale purchasing and manu¬
facturing association and functions as a supply source
the

...

filed

record Oct. 7 at the rate of one-and-a-half

ferred
For

Corp.

offered

$8,000,000

1960 filed

25,

grinding and mixing equipment for the livestock indus¬
try, and conveying and seed cleaning equipment. Pro¬
ceeds—To selling stockholders.
Office—Hopkins, Minn.

Inc.

656, 800 Peachtree St., N. E., Atlanta, Ga. Underwriter—
Atlanta Shares, Inc., same address as the company.

dinated

Corp.

Aug. 22, 1860, filed 150,000 shares of common stock (no
par). Price—To be supplied by amendment. Business—
The
company
makes
agricultural
implements,
feed

1960 (letter of notification) 150,000 shares of
stock (par $1). Price—$2 per share. Proceeds—
closing payment on a building, repayment of an

Consumers

(12/5-9)

working capital. Office—Astoria, L. I., N. Y. Under¬

Baffin

30,

Sept.

Inc.

writer—General Securities Co., 101 W. 57th St.. N. Y. 19,
N. Y.
" "
.1

Huntley Corp., Little Rock. Ark.

Consolidated Southern Companies,

way,

equipment, promotion, inventory,

2915

—

Ave.,. Tampa, Fla. Underwriter —•
Co., Atlanta, Ga. and New York City. Offering

CycSematies,

and

opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,

Proceeds

new

Office

purposes.

Hillsborough

Aug, 31, 1960 filed 250,000 shares of common stock (par
10 cents). Price—$1 per share. Business—Motorized and
automatic health equipment. Proceeds — For inventory

retirement

For

general corporate

Courts &

remaining 13,300 shares, being outstanding are
to be offered for the account of selling stockholders,
subsequent to the sale of the new shares. Price—$3 per
share. Business—The company which was organized in
February 1960, is engaged in the development, produc¬
tion and distribution of heat-resistant synthetic resins.
—

for

—Sometime in January.

debentures and nine shares of stock.
amendment.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
YorK. Offering—Indefinite.

the

Chematomics, Inc.

West

outstanding loan and for working capital. Office—Suite

Sept. 29, 1960 filed $1,000,000 of 6%% junior subordin¬
ated debentures, due 1975, with five-year warrants for

•

balance

follows: $1,000 of bonds and 48 shares

completed ("shell") homes.
and the

owner

Proceeds—To increase mortgage notes receivable

Price—To

For the

units

—The construction of

of stock and $100 of

Development Corp.

Caribbean & Southeastern

in the Caribbean area,

offered

Thursday, December 1, 1960

...

—

Wright & Co., Inc., New York, N. Y.

Drexel

Equity Fund, Inc.
Oct. 25, 1960 filed 500,000 shares of common stock (par
10 cents).
Price—$10.20 per share. Business—This is a
new mutual fund, organized as a closed-end fund on Oct.
19, which will become open-end pursuant to the public
sale of these shares.

Proceeds—For portfolio investment.

Office—Cleveland, Ohio. Underwriters—Shearson, Ham-

Office—-1500 Walnut Street, Philadelphia,
tor and Investment Adviser—Drexel &

mill &

Pa.

Proceeds

—

For

Co., New York City and Gunn, Carey & Roulston,
Inc., Cleveland, Ohio (managing). Offering—Expected in
mid-January.
•

Crumpton Builders, Inc.
17, 1960 filed 750,000 shares of
.

Nov.

common

stock, $1,~

500,000 of 9% convertible debentures due Jan. 10, 1981,
and warrants, to be offered in units, each unit to consist
of five shares of

common

stock, one debenture and one

Pa. Distribu¬
Co., Philadelphia,

Offering—Expected in January.

•

Durlan, Inc.
Oct. 24, 1960 (letter of notification)
100,000 shares of
common stock
(par 10 cents). Price—$3 per share. Pro¬
ceeds—For promotion, advertising, purchase of equip¬
ment and working capital. Address—Blooming
Glen, Pa.

Underwriter—Hess, Grant & Remington, Inc., Philadel¬
phia, Pa. Offering—Imminent.
,

Number 6008

Volume 192

The Commercial and Financial Chronicle

(2207)

35
y>

Manufacturing Co.

± Echlin

Nov.

(letter of notification) an undetermined
stock (par $1). Price—To

1960

21,

number of shares of common

supplied by amendment.- Proceed.—To selling stock¬
Address—Branford, Conn. .Underwriter—Blair

holders.
&
•

Industries, Inc.

Edwards

Co., Inc., New York City (managing). Offering—Expect¬
ed in late December or early January.

Industries,

Electro

other

(letter

1960-

19,

Electro-Mechanics

Co.

4 'I960' (letter of notification)
100,000 shares of
stock (par 10 cents). Price—$3 per share. Pro¬

Oct.

common

capital. "Address—Westlake Hills,
Tex. Underwriter—James C. Tucker & Co., Inc., Austin,
Tex.
..\
V„

ceeds—For

working

(letter of notification) 250,000 shares of
.common stock. Price—^At par ($1 per share). Proceeds—
To purchase new equipment, rental and for administra¬
tive costs. Office—115 Washington Blvd., Roseville, Calif.
Underwriter—A. J. Taranto & Co., Carmichael, Calif.
Aug. 31,

1960

Electronic

Specialty Co.

of common stpck

(par 50
Proceeds
general funds in anticipation oi
capital requirements, possibly to include acquisitions

June

filed

150,000

Price—To be supplied by amendment.

cents).
~To

added

Fernando

San

Office—5121

the

Underwriter— Bateman,

Foremost

Road,

Angeles,

Los

Calif

Eichler & Co. of Los Angeles,
postponed.

Calif. Offering—Indefinitely

if Electronic Tube Corp.
Nov. 28, 1960 filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business—The manu¬
facture and sale of cathode ray tubes and associated

Proceeds—The acquisition of equip¬
ment; initiation of production: repayment of existing
indebtedness and for working capital. Office—1200 E.
Philadelphia, Pa. Underwriter—Harrison

Co., Philadelphia, Pa. (managing).

,•

Elion

Instruments,

Inc.

28, 1960 filed 60,000 outstanding shares of capital
stock (par 50 cents), together with five-year warrants
for the purchase of 6,000 new capital shares, to be of¬
fered for sale in units of one share of stock and onetenth of a warrant. No sale will be made of less than
10 such units. Price—To be related to the price of the
Oct.

company's stock in the over-the-counter market imme¬
diately prior to the offering. Business—The firm makes
.and sells instruments and equipment for scientific and
industrial measurement and analyses. Proceeds—To sell¬
ing stockholders, who are two company officers who will
proceeds to the company. Office—430 Buck¬

lend the net

ley

St., Bristol, Pa. Underwriter — Warner, Jennings,
& Longstreth, Philadelphia, Pa. Offering—Ex¬

Mandel

pected in late January-to-early February.
•

Epps Industries, Inc.

,Nov. 2, 1960.

share. Business—Epps is engaged in dis¬
tributing and processing sheet and strip steel,. picking
and treating steel, and manufacturing round and square
electric welded steel tubing. Proceeds—To repay out¬

Price—$3

standing

per

bank

loans

and

notes,

with

the

balance for

working capital and general corporate purposes, includ¬

ing the installation of an additional tube mill. Office—
2332 E. 38th St., Los Angeles 58, Calif. UnderwriterCalifornia Investors, 3932 Wilshire Blvd., Los Angeles 5,
Calif. Offering—Imminent.
Street

;

(12/2)
Sept. 26, 1960 filed a minimum of $20,000,000 market
value of shares of its $1 par common stock. Price—To be
supplied by amendment. Business— The company is a
newly organized open-end mutual fund. Proceeds—For
investment. Office—140 Federal St., Boston, Mass. Deal¬
er-Manager — Goldman, Sachs & Co., New York City
(managing). *
.(
% '
.
•
•
'/
i

Federal

First

Fund,

Inc.

Investment

American

Corp.

14, 1960 filed 2,500,000 shares of common stock.
Price—$2 per share. Business—Insurance. Proceeds—To

acquire control of Western Heritage Life Insurance Co.
to organize subsidiaries. Office—2222 N
,16th St., Phoenix, Ariz. Underwriter—None.
-of Phoenix, and

Inc., New York, N. Y.
Foxboro Co.

Oct.
of

Business Investment Co.

Aug. 12, 1960 filed 225,000 shares of common stock (par
$1). Price—$10 per share. Proceeds—To retire $150,000
of debentures, and for capital for loans for small busi¬
nesses. Office—95*
Main St., Bridgeport, Conn. Under¬
Hill, Darlington & Grimm, of New York City.
Offering—Expected in January.

writer

—

First

Small

of Tampa,

Business

Investment

Company

Inc.

Oct. 6, 1960

filed 500,000 shares of common stock. Price
—$12.50 per share.- Proceeds — To provide investment
capital. Office—Tampa, Fla. Underwriter—None.
Florida Suncoast Land &

Mining Co.

lands

and

assets,

and the

balance

Sept. 28,

1960 filed

50,000

will .be for

efforts"

basis.

(12/5-9)
of

stock

common

which

18,750 shares are to be offered for the account of
issuing company and the remaining 31,250 for the

the

account of the present holders thereof. Price—To be
sup¬
plied by amendment. Proceeds — For working capital.
Office—New Bedford, Mass. Underwriter—C. E. Unterberg, Towbin Co., New York City (managing).

(12/5-9)

the

amendment.

Proceeds—For

general corporate purposes,
plant facilities.
Office—3b

including warehouse and
Neponset Ave., Foxboro, Mass. Underwriter
Paine,
Webber, Jackson & Curtis, New York City (managing).
Franklin

Discount

Co.

Aug. 23, 1960, filed $300,000 of 8% subordinated convert¬
ible debentures, due serially
1966-1968, and $300,000 of
8%

capital notes due eight years, eight
eight days after date of issue. Prices—At
Business—The company is engaged in the consumer

par.

finance
the

Glas

ceeds

small

loan

purchasing of

business, and, to

car,

sales contracts from dealers.

porate purposes.
Ga.

lesser extent,

boat, and appliance installment
Proceeds—For general cor¬

Office—105 North Sage Street, Toccoa,

Underwriter—None.

Foam

Corp. (12/5-9)
"
■
'
1960 (letter of notification) 100,000 shares of
stock (par 10 cents). Price—$3 per share. Pro¬

•

—

Globe Security Systems, Inc.

(12/6)
1960 filed 100,000 shares of common stock (no
par). Price—To be supplied by amendment. Business—
Supplying plant security and uniformed guard and in¬
vestigatory services to industrial and commercial cus¬
Oct. 13,

tomers. Proceeds—For debt reduction,
working capital,
expansion, and possibly acquisitions. Office—2011 Wal¬
nut St., Philadelphia, Pa. Underwriter—Drexel &
Co.,
Philadelphia, Pa. (managing).

Gold

Medal

Packing Corp.

June 17, 1960, filed 100,000 shares of 25c convertible
pre¬
ferred stock (par $4).
Price—At par. Proceeds—Ap¬

proximately
portion

$150,000

will be used to discharge that
obligation to Jones & Co. pursuant to

its

which certain inventories

are

indebtedness

Co.

Jones

Frisch's Restaurants, Inc. (12/12)
Oct. 18, 1960 filed 180,000 shares of outstanding common
stock. Price—To be supplied by amendment. Proceeds—

pany's obligations to

purposes.

selling stockholders. Office—Cincinnati, O.
Under¬
writer—Westheimer & Co., Cincinnati, O. (managing).
Gala

Industries, Inc. <
25, 1960 (letter of notification)

Oct.

stock

.common

ceeds

16,000

(par 25 cents). Price—$5

per

shares of
share. Pro¬

For equipment, advertising and sales, working
capital, research and development. Address — Clifton
Forge, Va. Underwriter—Storer Ware & Co., Roanoke,
—

pledged

collateral.

The

initially incurred on
15, 1960 in connection with refinancing the com¬

June

•

Proceeds—

For boat molds, to pay off a
mortgage and for
working capital. Address—Hialeah, Fla. Underwriter—
Martinelli & Co., Inc., New York, N. Y.

subordinated
and

development.

Whitman,
York, N. Y.
Co., New York, N. Y.

Underwriter—S. D. Fuller &

common

1960 filed 211,000 shares of common stock, of
125,000 shares are to be offered for the account

and

general corporate purposes. Office—c/o
Ransom & Coulson, Esqs., 40 Wall
St., New

Sept. 28,

18,

research

For

used

for

the

was

bank.

In addition, $15,000

construction

additional

will

smoke¬

house, and the balance will be

used for general corporate
Office—614 Broad Street, Utica, N. Y. Busi¬

ness—The

company is engaged in the processing,,,pack¬
ing and distribution of meats and meat products, prin¬

cipally sausage products, smoked meats, bacon, and meat
specialties. It also sells certain dairy products. Under¬
writer—Ernst Wells, Inc., 15 William Street, New York
City.
Golden

Crest Records, Inc.
25, 1960 filed 85,000 shares of 10c par class A com¬
stock.
Price—$3 per share.
Proceeds—The firm
will use the proceeds of its first public
offering for
working capital and general corporate purposes. Office
—Huntington, L. I., N. Y. Underwriter—Dean Samitas
& Co., Inc., 11 Broadway, New York
City. Offering—
Expected in January.

Va.

Oct.

•

mon

Garsite

Corp.

(12/12-17)

Oct. 12, 1960 filed 100,000 shares of common stock. Price

—$3

share. Business—A hydrant jet fueling com¬
Proceeds—Expansion. Office—Seaford, L. I., N. Y.

per

pany.

Underwriter—Theodore Arrin & Co., Inc., 82 Beaver St.,
New York
•

City.

Great American

(Connie

B.) Gay Broadcasting Corp.
Sept. 9, 1960 filed 130,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
The company and its subsidiaries own and
operate radio

Industries, Inc.

Nov. 10, 1960 filed 500,000 shares of outstanding common
stock (par 10 cents). Price—$3 per share. Proceeds—To

and television'stations. Proceeds—For the acquisition of
a television
station and two radio stations in Missouri.

go to selling stockholders. Office—485 Fifth Ave., New
York, N. Y. Underwriter—J. G. White & Co., Inc., New
York, N. Y.

Office

•

—

4000 Albemarle St., N. W.,

Washington, D. C.

Note—This

statement

was

withdrawn

Nov. 17.

Manufactures

General

Bowling Corp. (1/23-27)
Nov. 17, 1960 filed 250,000 shares of common stock (par
100). Price—$4 per share. Business—The issuer owns
two bowling establishments, and a tract of land in In¬
diana County, Pa., on which it hopes to build a third.
Proceeds—To equip the prospective establishment ($150,000), to repay a bank loan ($50,000), to add eight lanes
to a bowling facility ($50,000), and the balance will be
used for working capital. Office—2 Park Avenue, Man-

hasset, L. I,, N. Y. Underwriters—H. S. Simmons & Co.,
Inc., and McMahon, Lichtenfeld & Co., both of New York

City.

Gremar Manufacturing Co., Inc. (12/5)
Sept. 20, 1960 filed 100,000 shares of common stock (no
par). Price—To be supplied by amendment. Business—
cable

coaxial

connectors

and

associated

fittings for the electronic and electrical industries. Pro¬
ceeds — For general corporate purposes, including debt
reduction, inventory and construction. Office—7 North
Ave., Wakefield Mass. Underwriters—Milton D. Blauner
& Co., Inc. and M. L. Lee Co., Inc., New
York, N. Y
Gro-Rite Shoe
Oct.

12,

1960

Co., Inc.

(letter of notification)

undetermined

number of shares of common stock

(par $1). Price—The
offering will not exceed $300,000. Proceeds—For work¬
ing capital. Address—Route 2, Box 129, Mount Gilead,

Underwriter—American Securities "Co.. Charlotte,

N. C.

General

Development Investment Plans, Inc.
6, 1960 filed 1,285 of Investment Plans. Price—To
public sale with sales commissions rang¬
ing from 8% to 10%, depending upon the type of mort¬
gage financing involved.
Proceeds—For investment in
Port St. Lucie Country Club homes, on the east coast of
Oct.

be offered for

Business—The company

wholly-owned sub¬

•

Guild Musical Instrument

Corp.

Oct. 25, 1960 filed 110,000 shares of common stock. Price

—$3

per

share. Proceeds

—

For general corporate pur¬

including debt reduction, machinery and equip¬
ment, inventory, and working capital. Office—Hoboken,
N. J. Underwriter—Michael G. Kletz &
Co., Inc., New
poses,

York

City.

sidiary of General Development Corp., whose principal
business is the development of large tracts of land into

if Gulf Guaranty Land & Title Co.

planned communities. Office—2828
Miami, Fla. Underwriter—None.

ated

General Sales Corp.

S. W.

22nd Street.

ind

(12/5)

of debentures and 250 shares of

facilities for the Portland Discount Center;

$75,000
in the Salem Center; and $50,000
to provide working capital for General Sales Acceptance
-Corp. for credit sales to member customers.
The balsame

purposes

of the proceeds

will be used to open two new stores
In Oregon and Idaho. Office — 1105 N. E. Broadway,
Portland, Ore. Underwriter—A. J. Gabriel & Co., Inc.,
tnce

New

York

Genie

City.

Petroleum,

convertible subordin¬

debentures, due 1968 and 150,000 shares of common
stock to be offered in
units, each unit to consist of $100

April 28 filed 120,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
for the

Nov. 29, 1960 filed $750,000 of 7%

$200

common

stock. Price—

unit. Proceeds—To reduce indebtedness, repay
mortgage, construction, and general corporate purposes.
Office—Miami, Fla. Underwriter — Street & Co., New
per

York

City.

Gulf
Nov.

States

29,

1960

Utilities

filed

Co.

350,000

(1/17)

of common stock.
notes, for construction,
Office—Beaumont, Tex.
determined by competitive bidding.

Proceeds—To repay short-term
and general corporate purposes.
Underwriter—To be
Probable

bidders:

Stone

Webster

Securities

Corp.;

Lehman Brothers; Glore, Forgan & Co.; Lee Higginson

Inc.

—'

Corp. Bids—Expected Jan. 17, 1961.

Nov. 10, 1960

Sept. 30, 1960 filed 1,050,000 shares of common stock, of
which 330,000 shares are to be offered in exchange for
certain

..V

issuing company and 86,000 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price—To be
supplied by

•

First Connecticut Small

"best

ness—Scientific

by department, drug and variety chain stores,
Proceeds—-For expansion; to repay a
loan; advertising, sales and promotion; for working cap¬
ital and general corporate purposes. Office—250 W. 57th
St., New York, N. Y. Underwriter—Richard Bruce & Co.,
institutions.

Florida.

Oct.

ness—Manufacturers of stainless steel food service equip¬
and

(managing).

filed 100,000 shares of $1 par common stock.

licensed broker-dealers

ment used

Underwriter—Hill, Darlington & Grimm, New York City

offering is to be made, and to offer
338,718 of the shares through its officers and employees.
The remaining 500,000 shares will be offered
through

• Geotechnics & Resources, Inc. (12/21-25)
Nov. 25, 1960 (letter of
notification) 149,800 shares of
capital stock (par 25 cents). Price—$2 per share. Busi¬

common

electronic products.

Mermaid Lane,

Industries, Inc.
of notification) 100,000 shares of
stock (par 50 cents). Price—$3 per share. Busi¬

14,'I960 .(letter

months

licensed broker-dealer in the

Geophysics Corp. of America

—

Electro-Nuclear Metals, Inc.

intends to become

states in which this

Corp.

notification) 150,000 shares of com¬
Price—-$2 per share. Proceeds—To
pay a loan, pay a balance under creditors agreement
and for working capital. Office—11747 Vose St., North
Hollywood, Calif. Underwriter—Thomas Jay, Winston &
Co., Inc., Beverly Hills, Calif.

which

Electronics

Oct. 4, 1960 (letter of
mon stock
(no par).

Oct.

Inc.

of notification) 75,000 shares of
class A common stock (no par) and 20,000 shares of addi¬
tional class A common stock to be offered to the under¬
writers. Prices—Of class A common, $2 per share; of
additional class A common, 2Y2 cents per share. Proceeds
'—To expand the company's inventory to go into the
.packaging and export of electrical equipment, and for
working capital. Office—1346 Connecticut Ave., N. W.,
Washington, D. C. Underwriter — Carleton Securities
.Corp., Washington, D. C.
' v •
July

'...

writer—None.
Ford

homes, and working capital relating to such activities.
Office—Portland, Oreg. Underwriter—Joseph Nadler &

suer

Co., Inc., Chicago, 111.

Sept. 27, 1960 filed 100,UuO shares of common stock. Price
—$4.50 per share. Proceeds — For land, financing ol

*•

public sale. Price—To be supplied by amendment. Pro¬
ceeds —J- For the acquisition and development of land,
mining operations and equipment, and the balance for
working capital.
Office—Tarpon Springs, Fla.
Under¬

ing—Scheduled for Jan. 12 at 11:00

—$1

Information Meet¬

Bank, New York City.

filed 838,718 shares of common stock. Price
share. Business—Development of oil properties.
Proceeds—For general corporate purposes. Office—5245
W. Irving Park Road, Chicago, 111. Underwriter—The isper

a.m.

at the Hanover

Continued

page

*r1

The Commercial and Financial Chronicle

(2208)

Colo.

Instruments Co.

Heinicke

Illinois

stock. Price
amendment. Business—The company,
together with its subsidiaries, makes stainless steel
pumps for its own use and sale to others, and designs

Nov. 10, 1960 filed
To be supplied by

manufactures

and

67,000 shares of common

high

frequency

cleaning -equipment

cleaning and sterilization of glassware.
Proceeds—To reduce by $300,000 the issuer's note in the
amount of $470,000

payable to its president, Dr. Kurt

Heinicke, with the balance for plant and equipment and
other general corporate purposes. Office—2035 Harding
St., Hollywood, Fla. Underwriter — Pierce, Carrison,
Wulbern, Inc., Jacksonville, Fla. (managing).
Heldor Electronics Manufacturing Corp.
June

(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬

1960

29,

stock

common

purposes.
Office — 238
Underwriter—S. Schramm
Co., Inc., New York, N. Y. Offering—Imminent.

ceeds— For,

general

corporate

Lewis Street, Paterson, N. J.
&

Heller, (Walter E.) & Co.
Oct. 24, 1960 filed 100,000 shares of common stock (par
$1). Price—To be supplied by amendment. Proceeds—
About $1,000,000 to purchase preferred stock of Nation¬
wide Investment Co., about $1,000,000 to purchase secu¬
rities of an as yet unorganized firm tentatively named
"Credit Acceptance Co.," and the remainder for general
corporate purposes. Office—105 West Adams St., Chi¬
cago, 111. Underwriters — F. Eberstadt & Co. and Dean
Witter & Co., both of New York City (managing). Offer¬
ing—Expected in late December to early January.
High Point Ski Ways, Inc.
17, 1960 (letter of notification) 150,000 shares of
stock (par 10 cents). Price—$2 per share. Busi¬
ness—Operation of a ski area, ice-skating rink, open air
Oct.

common

theatre, skeet and other shooting ranges. Proceeds—Foi
general corporate purposes. Address—Port Jervis, N. Y.
Underwriter—Osborne, Clark & Van Buren, Inc., New
York, N. Y. Offering—Imminent.

tures, due 1980, and 1,650 shares of class A common stock,
to be offered in units of one $1,000 debenture and one
class A share. Price — To be supplied by amendment.

the company, which
was organized under Kansas law in June, 1959, will be
the owning, acquiring, improving, developing, selling,
and leasing of improved and unimproved real property.
Proceeds—To reduce funded debt.
Office—401 Colum¬
Business—The principal business of

Pa.

Office—200 South Craig Street, Pittsburgh,
Underwriters—Amos Treat & Co., Inc., New York,

and

Bruno

share.

Lenchner,

Pittsburgh,

Inc.,

Control

Industrial

Products,

Pa.

Inc.

Nov. 1, 1960 filed 125,000 shares of 100 par class A stock.
Price—$4 per share. Business—The design and manu¬
facture of control systems and subcontracted precision

recently

has

firm

The

machining.

begun

make

double-diffused, broad base silicon diodes, but is not vet

production of these items.

in commercial

Proceeds—For

of semi-conductor production, research and
development, advertising and selling, inventory, and gen¬
eral funds.
Office—78 Clinton Road, Caldwell Town¬
expenses

ship,

Underwriter—Edward Hindley

Co., 99

New York 5, N. Y. (managing). Offering—
Expected in mid-January.
Wall Street,

Industrial Hose & Rubber Co.,

•

stock. Price
—$4 per share. Proceeds — Toward the repayment of
notes, new machinery, additional inventory, and the bal¬
Aug. 31, 1960 filed 125,000 shares of common

Office — Miami, Fla. Under¬
writer—Schrijver & Co., New York City (managing).
for working capital.

ance

Diode Corp.

International

July 29, 1960 filed 42,000 shares of 6% non-cumulative
convertible preferred stock (par $8). Price — $8 per
share. Business—Makes and sells diodes. Proceeds—To
establish

staff of

production and sales engineers, fi¬

development, buy equipment, and
Office—90 Forrest St., Jersey
City, N. J. Underwriter—Ernst Wells, Inc., New York
add

product

new

nance

working capital.

City.
Corp.

Mosaic

International

•

(12/23)

1960

30,

For general corporate purposes.
Office—45 East 20th St., New York 3, N. Y. Underwriter
—B. G. Harris & Co., Inc., New York, N. Y.
Proceeds

processes.

—

Insurance Co.

Life

Preferred

Investors

stock

Little

Rock, Ark. Underwriter — Life
P. O. Box 3662, Little Rock, Ark.
Iowa

Power

16,

stock

Securities, Inc.,

Light Co.
(12/6)
shares of common stock. Price
—To be supplied by amendment.
Proceeds—To reduce

past and future bank loans incurred for construction, the
aggregate cost of which is estimated at $20,500,000 for
1960-1961.
Office
823 Walnut
Street, Des Moines,
—

operate

through

162 inns throughout the country. The issuer,
subsidiary, gains additional revenue from sell¬

supplies and equipment to motels, prin¬
cipally its licensees. Proceeds—To selling stockholders.
Office—3736 Lamar Ave., Memphis, Tenn. Underwriter
—Equitable Securities Corp., Nashville, Tenn. Offering
—Expected in mid-December.
ing

various

Home

July 15, 1960 filed 1,000,000 shares of common stock (par
50c). Price—$1 per share. Business—The company is
engaged in real estate financing and lending. Proceeds
—For
general
corporate purposes.
Office — 409 N.
•

Underwriter—None.

Howell Instruments Inc.

Oct. 4, 1960 filed 140,000 shares of outstanding common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders.
Address — Fort Worth, Texas.
Underwriters—G. H. Walker & Co., New York, N. Y. and

Dewar, Robertson & Pancoast, San Antonio, Tex. Offer¬
ing—Indefinitely postponed.
it Hydro-Electronics Corp.
Nov.

21,

1960

(letter of notification)

150,000 shares of
common stock (par one cent). Price—$2 per share. Busi¬
ness—The design and manufacture of precision measur¬
ing equipment, automation equipment and general pre¬
cision fluid controls. Proceeds
For general corporate
purposes.
Office—691 Merrick Road, Lynbrook, L. I.,
N. Y. Underwriter—Lloyd Securities, New York, N. Y,
—

ir Hydromatics, Inc.
Nov. 25, 1960 filed $1,000,000 of debentures, due Jan. 1,
1971 with warrants for the purchase of common stock
to

offered

debenture and

units, each unit to consist of a $1,000
warrant; and'20,000 outstanding com¬

determined

Stone & Webster Securities Corp. and
Bids—To be received on Dec. 6 up to

Co.;

Barney &

(CST), Assembly Room, 8th floor, Harris Bank

Bldg., Ill W. Monroe St., Chicago, 111.
Power

ceeds—To
for

reduce

past and future bank loans incurred

construction, the aggregate cost of which is estimated

$20,500,000 for 1960-1961. Office—823 Walnut Street,
Moines, Iowa. Underwriter—To be determined by
competitive bidding.
Probable bidders: First Boston
at

Des

Corp.; Equitable Securities Corp.; White, Weld & Co.;
Halsey, Stuart & Co. Inc., Lehman Brothers; Eastman
Dillon, Union Securities & Co.; Blyth & Co. and Kidder,
Peabody & Co. Bids—Expected to be received on Jan. 11
up to 10:00 a.m. (CST) at the Assembly Room, 8th floor,
Harris Bank Bldg., Ill W. Monroe St., Chicago, 111.

Irving Fund for Investment in U. S. Government
Securities, Inc.
July 22, 1960, filed 400,000 shares of common stock.
Price
$25 per share. Business — A diversified invest¬
ment company, which will become an open-end company
with redeemable shares upon the sale and issuance of
—

the

Proceeds—For investment

being registered.

Office—50 Broad Street,

in U. S. Government securities.
New York
ment.

City. Underwriter—To be supplied by amend¬
— Brlnsmade
& Shafrann, 20 Pine

Attorneys

Street, New York 5, N. Y.
Israel

Development Corp.

Nov. 21, 1960 filed $3,000,000 of
fund debentures, series A, due

valves. Proceeds—To retire

common

offered

designing, manufacturing and selling of ball
bank loans, purchase addi¬
tional equipment and for working capital.
Office — 5
Lawrence St., Bloomfield, N. J.
Underwriters — Paine,
Webber, Jackson & Curtis and Tucker, Anthony & R. L.
Day, both of New York (managing).

Hydroswift Corp.
Oct. 20, 1960 filed 70,000 shares of
—$5
and

common

stock.

Price

share.

services for

the fiberglass

industry, including

par¬

Proceeds—To

Israeli

businesses.

invest

development of
establishing or existing
East 71st St., New York

Office—17

City. Underwriter—None.
Jonker Business Machines, Inc.
Sept. 30, 1960 filed 50,000 common stock units, each unit
to

consist of

class

pansion.

holders of its

one

share of class A

common

Price—To

1991.

due

1750

South

8th

St., Salt Lake City,
Utah. Underwriter—Whitney & Co., Salt Lake Citv-Utah.
—

Inc.

June 29 filed 600,000 shares of
per

share.

stock

(par $1/
Proceeds—To further the corpo¬
common

Jan. 17 at

and 3 shares

Oct.

107,755 shares of common

1960 filed

28,

stock, of

which

32,755 shares are to be offered for the account of
the issuing company
and 75,000 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price — To be supplied by
amendment.
Business—The company makes aluminum
siding and accessories, coated materials, aluminum rail¬
ing and columns for interior and exterior use, and a
variety of aluminum combination storm-screen sash and
doors
used

and

finance

products.-Proceeds—$150,000 will be
construction

the

and

installation

additional paint line, with the balance for working capi¬
tal. Office—511 Mellon Bank Bldg., Latrobe, Pa. Under¬

Singer,
(managing).

•

Deane

—

Koeller Air

Scribner,

Pittsburgh,

Pa.

Products, Inc.

(12/8)
of common stock
(par 5 cents) and 50,000 warrants to be offered in units,

Aug.

31,

1960

each unit

filed

100,000

to consist of 2

common

stock

warrant. Each full warrant is convertible into
common

one

and

within

a year from
the date of offering at
Price—$4 per unit. Business—The firm
hydrogen, nitrogen, oxygen, and welding

share.

per

distributes

equipment. Proceeds

—

For general corporate

purposes.

Office—596 Lexington

Ave., Clifton, N. J. Underwriter—
Lloyd Securities, 150 Broadway, New York City.
LP Gas

Savings Stamp Co., Inc.
(letter of notification) 30,000 shares of
common stock Price—At par
($10 per share). Proceeds
—For purchase of creative design and printing of cata¬
logs, stamp booklets, advertising and for working cap¬
ital. Office—300 W. 61st St., Shreveport, La. Underwriter
—International Sales & Investment, Inc., 4501
North
Blvd., Baton Rouge, La.

27,

Sept.

Lake
Nov.

1960

Central

Airlines,

filed

1960

stock. Price—To be

the

bank

loan,

planes

and

the

Inc.

;

130,000 shares of $20 par preferred
supplied by amendment. Business—

local service airline operating primarily '

midwest.

Proceeds—Together with a $3,000,000
be used to acquire more

proceeds will

other

for

purposes

germane

expansion.

Office—Indianapolis, Ind. Underwriter—William Blair &

Co., Chicago, 111. (managing).

;

"Lapidoth" Israel Oil Prospectors Corp. Ltd. f
27, 1960 filed 1,500,000 ordinary shares. Price—To
supplied by amendment, and to be payable either
totally or partially in Israel bonds. Business—The com¬
pany was organized in October 1959 as a consolidation
of individual and corporate licensees who had been oper¬
ating in the oil business as a joint venture. Proceeds—
For exploration and development of oil lands.
Office—
Oct.

Rothschild

Blvd.,

Tel-Aviv,

Israel.

Underwriter—

None.
Leadville Water Co.
June 28,

1960 (letter of notification) $220,000 of 20-year
series A first mortgage coupon bonds to be offered
of $1,000. Price—At par. Proceeds—

6%
in

denominations

For
of

mortgage payment, outstanding notes, construction
water supply and general
corporate purposes.

new

Office—719 Harrison

Ave., Leadville, Colo. Underwriter

—H. M. Payson & Co., Portland, Me.

it Leasing Credit Corp. /
«
Nov. 29, 1960 filed 200,000 shares of class A stock and
200,000 warrants to be offered in units of one share and
one warrant. Price—$4 per unit. Proceeds—For
working
capital. Office—New York City. Underwriter—Edward
Lewis &

Co., Inc., New York (managing).

Liberian

May

Iron

Ore

Ltd.

joined with The Liberian American-Swedish
Minerals Co., Monrovia, Liberia, in the filing of
$15,000,000 of 6V4% first lien collateral trust bonds, series A,
due 1980, of Lio, $15,000,000 of 6V\% subordinated de¬
bentures due 1985 of Lio, an unspecified number of
shares of Lio capital stock, to be offered in units.
The
19

units will consist

of $500

of debentures and

of collateral trust

bonds, $500

15 shares of capital stock. Price—For

units, to be supplied by amendment, and not to be in
of par. Proceeds—To make loans to Lamco. Office
—97 Queen St., Charlottetown, Prince Edward
Island,
Canada, N. S
Underwriter—White, Weld & Co., Inc.,

be offered for subscription by
Price—The price and the
basis of the rights
offering will be supplied by amend¬

excess

New York. Note

common,

common

stock.

cen¬

ters, establish distributorships, expansion, and the bal¬
ance for working
capital. Office—404 No. Frederick Ave.,

Oct.

Office

Parker &

Hodgdon & Co., Inc.,

Jungle Juice Corp.
28, 1960 (letter of notification) 120,000 shares of
stock ,(par 25 cents). Price—$2.50 per share.

This

offering has temporarily been

ir Life Assurance Co. of Pennsylvania
Nov. 29, 1960 filed 60,000 shares of capital stock. Price—
To be supplied by amendment. Proceeds—For invest¬

common

—

postponed.,

necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriter*— Pur

(EST).

a.m.

Keystone Alloys Co.

Gaithersburg, Md. Underwriter
Washington, D. C.
/:«■.

concentrate

enfranchising of bottlers, the local and national pro
motion and advertising
of its beverages, and where

bonds,

competitive bid¬

Union Securities & Co. and Stone & Webster Securities

and

rate purposes and In the preparation of the

determined at

ding. Proceeds—To retire bank loans and for company's
construction program. Office — 201 North Market St/,
Wichita, Kansas. Underwriter — To be determined by
competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Smith and Kidder, Peabody & Co.
(jointly); Halsey, Stuart & Co. Inc.; Eastman Dillon,

ment. Proceeds—To establish sales and information

Office

Price—$2.50

such debentures. Price—To
$1,000 and $5,000,

denominations of $500,

makes funds available for the economic

ticularly fiberglass boats known as "HydroSwift" and
"Skyliner." Proceeds—For general funds, including ex¬

I C

5%% convertible sinking
1975, and 100,000 shares

payable in cash or State of Israel bonds. Business—The
company
is a closed-end investment company which
Israel.

Business—The firm, which was organ¬
ized in February, 1957, makes and wholesales products
per

stock underlying

The issuer is

& Light

Co. (1/11)
Nov. 7, 1960 filed $10,000,000 of first mortgage bonds,
due 1991.
Price—To be supplied by amendment.
Pro¬

one

shares. Price—To be supplied by amendment. Busi¬

competitive

First Boston Corp.
2:30 p.m.

ness—The

mon

bidding. Probable bidders: A. C. Allyn & Co., Inc.; Smith,

Iowa

Builders Acceptance Corp.

Nevada, Colorado Springs, Colo.

Underwrtter—To

Iowa.

Corp.

it Kansas Gas & Electric Co. (1/17)
Nov. 29, 1960 filed $7,000,000 of first mortgage

(letter of notification) 150,000 shares of
(no par). Price—$2 per share. Proceeds
—For capital and surplus accounts. Office—522 Cross St.,
Sept. 26, 1960

common

Kanavau

Sept. 30, 1960 filed 250,000 shares of common stock (par
$1). Price—$10 per share. Business—A real estate invest¬
ment company. Proceeds—For acquisition of properties,
working capital and general corporate purposes. Office—
415 Lexington Ave., New York, N. Y. Underwriter—Ira
Investors Corp., New York, N. Y.

writer

(letter of notification) 93,333 shares of
common stock (par 10 cents). Price—$3 per share. Busi¬
ness
Manufacture of glass mosaics by machines and
Sept.

working capital and expansion. Address

Proceeds-^For

—Seattle, Wash. Underwriters—Planned Investing Corp.,
New York, N. Y. and Fidelity Investors Service, East
Meadow, N. Y. Offering—Expected sometime in Janaury.

Corp. (jointly); Glore, Forgan & Co. Bids—Scheduled for

(12/8)

Inc.

Nov. 7, 19G0 filed 100,000

1960 filed 127,845 shares of outstanding com¬
(par $1.50). Price—To be supplied by amend¬
ment. Business — The firm and its licensees own and
Nov.

stock.
per

•

Bldg., Topeka, Kan. Underwriter—None.

Holiday Inns of America, Inc.
mon

filed

—

Hilltop, Inc.
I
Aug. 17, 1960 filed $1,650,000 of 6% subordinated deben¬

bian

Beef, L. & W. S., Inc.
200,OuO shares of outstanding common
Proceeds—To
selling stockholders.
Price—$10

April

the

used

Sudler & Co., both of Denver,

vis & Co. and Amos C.

Continued from page 35

Thursday, December 1, 1960

...

ment

in
—

income

producing

securities

and

mortgages.

Philadelphia, Pa. Underwriter
Auchincloss/
Redpath, Washington, D. C. (managing).
—

Volume 192

Number 6008

The Commercial and Financial Chronicle

(2209)

•

Lifetime Pools
Equipment Corp.
July 1, 1960, filed 100,000 shares of common stock. Price
—To be supplied by amendment.
Business—Engaged in

Plainview, N. Y.
and

the

Co.,

Inc., both

New

York

1960

11,

1960

(12/8)

Sept. 21,

Northwest 13th St., Oklahoma City, Okla. Underwriter—
F. R. Burns & Co., Oklahoma
City, Okla.

basis of $100 of debentures for each 18 common share®
held. Price—To be supplied by amendment. Business—

•

Domestic and international transport of persons, prop¬
erty, and mail. Proceeds—To make payments on plane®

Midland-Guardian

Co.
(12/30)
27, 1960 filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business
The firm
—

discounts retail instalment sales notes for dealers in shell

homes, mobile

homes, and cars; finances at wholesale
inventories of dealers in mobile homes and
cars; makes
loans directly to borrowers; and operates various

Manufacturers of aluminum furniture and other house¬
hold products. Proceeds—For
additional

small

chase of

insurance

equipment; pur¬
building; plant expansion and working capital.

Office—40 Gazza Blvd.,
—Arnold Malkan &

•

Cincinnati, O. Underwriter—Kid¬
der, Peabody & Co., New York City (managing).

Long

Island Plastics Corp. (12/8)
(letter of notification) 300,000 shares of common
(10c par). Price—$1 per share. Business—Conver¬

and

other

nylon

Midwestern Acceptance

and

;

the

treatment

reclaimed

permit its mixture and blending with
plastics. Proceeds
For additional
equipment,
inventory, and working capital.. Office
Farmingdale,
L. I., N. Y. Underwriter—The
James Co., 369 Lexington
Ave., New York City.
Loral

Electronics Corp.

manufacture

primarily in

and

sale

ceeds—Reduction

electronic

equipment

for

use

indebtedness

and

working capital.
Office—200 Stonehinge
Lane, Carle Place, N. Y. Under¬
writer—McLaughlin, Kaufman & Co., New York City
Marine

Sept. 22,

Electronics

Manufacturing Inc.

1960

(letter of notification) 100,000 shares of
stock class A
(par 10 cents). Price—$3 per

common

share.

Proceeds—-For expenses in the fabrication of sheet
metal parts for missiles,
rockets, radar and marine items.

Address—Hagerstown, Md.
Washington, D. C.
•

Marine

Oct.

28,

View

Electronics, Inc.
(letter of notification)

1960
stock

common

Underwriter—Batten & Co.,

100,000

(par

10 cents).
Price — $3 per share.
Business—Manufacturers of electronic equipment. Pro¬
ceeds—For
general corporate purposes.
Office—88-06,
Van Wyck

Expressway, Jamaica 18, N. Y. Underwriter
—Fund Planning, Inc., New
Offering—In¬
York, N. Y.
definite.

process; and
Bank Bldg.,

Supermarkets, Inc.

(12/15)

Nov. 4,

1960 filed $2,000,000 of convertible subordinated
debentures, due Dec. 15, 1980. Price—To be'supplied by
amendment.

Business

The
corporation, directly and
through two subsidiaries, operates a chain of 67 super¬
markets, a bakery and ice cream plant, and processes
and packages delicatessen items. Proceeds—For
general
—

The

—

debentures.

will do

company

Pro¬
P. O

21,

working capital. Office—1430 First National
Denver, Colo. Underwriter—None.

stock

supplied by

ment

bank

amendment.
Proceeds — For repay¬
loans and for additions to the property.

Office—739 Marquette Ave.,
Minneapolis 2,
derwriter—Kalman & Co., Inc., St.

Minn.
Paul, Minn.

by
of

The stock will be

shareholders
new

common

offered

for

subscription

for

held, the record date in

each

38.81

common

being Sept.

case

1960.

property so sold, such as mobile
and motorcycles. Proceeds—For

Fenner & Smith Inc., New York

Mensh

Investment

Lawnservice Corp.
(letter of notification) 100,000 shares of com¬
mon
stock (par one cent).
Price—$3 per share. Proceeds
For general corporate purposes.
Office — 41#
Livingston Avenue, North Babylon, N. Y. Underwrite!
—Fund Planning Inc., New
York, N. Y. Offering—In¬

Model

May

Finance Service,

filed

100.000

ferred stock—65c convertible
of 6^>%

Inc.
second

cumulative

pre¬

series, $5 par—and $1,000,-

junior subordinated debentures, due 1975

Price—To be supplied by amendment.
added to the company's general

Proceeds—To be

working funds. Office—
202 Dwight Building,
Jackson, Mich. Underwriter—Paul
C. Kimball & Co.,
Chicago, 111. Offering—Imminent.
•

Mohawk

Insurance

Co.

(12/15)

Aug. 8, 1960, filed 75,000 shares of class A

Price—$12

per

s*ock

common

share.

Monarch
Oct.

Broadway, New York 6, N. Y.

Electronics

International,

31, 1960 filed 200,000 shares of
be

definite.
National

supplied

Business—The

by amendment.

Price
com¬

convertible

debentures, due Sept. 1, 1970, and 36,675
shares of capital stock/(par $1) to be offered in units of

retire bank loans and for working capital. Office—7035
Laurel Canyon Boulevard, North Hollywood, Calif.
Un¬

$750 of debentures and 25 shares of stock; (2)
$969,000
of debentures and 32,300 shares of stock to be
offered
for subscription by stockholders and
(3) approximately
$142,860 of debentures and not to exceed 5,000 shares of

with
as

stock

filed

Associates,

offered

(1)

$1,100,250

ins exchange for the 6%

debentures,
March, 1961, of its subsidiary, Mentos Investments,
Inc. Price—(1) $1,100 per
unit; (2) 100% per debenture
due

and

$10

assets

per

of stock.

of the company

are

Business

office

The principal
building at 1910 K
—

St., N.W., Washington, D. C. Proceeds—To retire cer¬
obligations; make improvements on property; retire

tain

debentures due 1961, and to construct or
acquire income
producing properties. Office—1625 Eye St.,
Washington,
D. C. Underwriter—None.

• Metropolitan Securities, Inc.
Nov. 17, 1960 (letter of
notification) 100,000 shares of
class A common stock
(par $1). Price—$3 per share.
Proceeds
For working capital.
Office
919-18th St.,
N. W., Washington, D. C.
Underwriter
Metropolitan
Brokers, Inc., Washington, D. C.
—

—

•

Metropolitan Telecommunications Corp.
Sept. 27, 1960 filed $600,000 of convertible subordinated
debentures, to be offered for the account of the issuing
company,
and
25,000 shares of outstanding common
stock, to be offered for the account of four company
officers, the selling stockholders. Prices—For the
bentures, at par; for the common, to be supplied
amendment.

electronic

Business—The

and

company

communications

makes

equipment.

For general corporate purposes

and

de¬

sells

Proceeds—

including debt reduction,
working capital, and expansion. Office
Ames Court,

—

Life

Insurance Co.

the proceeds
result of

from the sale

stock. Price
Proceeds—Together

common

of shares to be

issued

options, in the amount of $1,106,407.50 for

discharge of indebtedness and general corporate pur¬
Office—Denver, Colo. Underwriter—Peters, Writer
Christensen Inc.,
Denver, Colo. Offering — Expected

poses.

sometime in December.

Navajo Freight Lines, Inc.
May 9, 1960, filed (with the ICC) 250,000 shares of com¬
mon
stock] of which 189,000 shares, being outstanding
stock, will be offered for the account of the present

thereof, and 61,000 shares will be offered for
account of the issuing company. Price—To be sup¬
plied by amendment. Office—1205 So. Plate River Driven

Denver

23, Colo. Underwriters—Hayden. Stone & Co.
Lowell, Murphy & Co. (jointly). Offering—Indefin¬

and

itely postponed.
New Canaan Co.

(12/12)

7, 1960 (letter of notification) 8,000 shares of class
capital stock (no par) and 2,000 shares of class B
capital stock (no par) to be offered in units of 4 shares

class

holders

and

class

for

subscription

and class B stock. Rights expire on
18, 1960. Price—$101 per-unit. Proceeds—To repay

Nov.

bank

loan, loans to subsidaries and for working cap¬
South Ave., New Canaan, Conn. Under¬
writer
Glidden, Morris & Co., 165 Broadway, New
York, N. Y.
a

ital.

Office—39

New

Moon

Nov. 28,

Homes, Inc.
1960 filed 131,600 shares of

stock

(par
by the
company, and 64,932 shares for the account of selling
stockholders. Price—$9 per share. Business—The manu¬

Street, San Francisco, Calif.
time in January.
•

Offering—Expected

some¬

Mortgage Guaranty

Insurance Corp. (12/15)
17, 1960 filed 155,000 shares of common stock (pa/
Price—To be supplied by amendment. Business—
Insuring lenders against loss on residential first mort¬
Oct.

$1).

loans,

principally
on
single
family
non-farm
capital and surplus. Office—-606
West Wisconsin Avenue, Milwaukee, Wis.
Underwriter
—Bache & Co., New York City (managing). Note—This
stock is not qualified for sale in New York State.
gage

homes.

States

Telephone & Telegraph

Co.
being

Oct. 28, 1960 filed 6,729,142 shares of capital stock
offered to stockholders of record Nov. 28 on the
of

one

expire
repay

new

Dec. 20. Price—$12.50
short-term loans made

Office—931
•

NAC

Sept.

share for each five shares

basis

then held.

per

share.

Rights
Proceeds—To

finance

construction.

St., Denver, Colo. Underwriter—None.

Charge Plan

21,

common

14th

1960 .(letter

Northern Acceptance Corp.

notification) 60,000
cents).Price—$5

stock class A (par 60

Proceeds—For -company

share.
E. Centre

per

expansion. Office—5
Underwriters—Sade & Co.,

St., Baltimore, Md. t
Bellamah, Neuhauser.„& Barrett, Washington, D. C., McCarley
&

Co., Asheville, N. C. and Murphy & (Co.. Denver. Cola.
Offering—Imminent.
National

Aeronautical Corp.

(1/4)

Nov. 8, 1960 filed 60,000 shares of $1
Price —To be supplied by

which

par common

amendment. Proceeds

are

common

offered

New Western

Underwriting Corp.
25, 1960 filed $2,000,000 of 15-year 6% subordinated
convertible debentures. Business
The company which
was
organized in August, 1959, is developing, through
subsidiaries, a dealer-recourse finance business and^ a
—

life

insurance business.

Proceeds—For expansion. Price
Office—Helena, Mont. Underwriter—Wilson,
Ehli, Demos, Bailey & Co., Kook Bldg., 3203 3rd Ave.,
North Billings, Mont.

—At

par.

Shopping Center, Inc.

Oct. 21, 1960 (letter of notification) $300,000 of 6%

sink¬
ing fund debentures to be offered in denominations of
$1,000 each. Price—At face value. Proceeds—For work¬
ing capital and construction of a shopping center. Office
—200

Hillcrest

Ralston, Neb. Underwriter—The
Lincoln, Neb.

Bldg.,

First Trust Co. of Lincoln,

Normandy Oil & Gas, Inc.
Aug. 31, 1960 filed 750,000 shares of common stock. Price
—$1 per share. Business—Oil and gas exploration and
production. Proceeds — For general corporate purposes.
Office—620 Oil & Gas Bldg., Wichita Falls, Texas. Un¬
derwriter—None, but 102,500 of the shares are reserved
for commissions to selling brokers at the rate of 15 share®
for each 100 shares sold.

Northern

States

Power

Co.

(Minn.)

(12/6)

Oct.

27, 1960 filed $35,000,000 of 30-year first mortgage
bonds. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc., Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
First Boston Corp. and Blyth & Co., Inc. (jointly); Leh¬
man Brothers and Riter & Co.
(jointly); Equitable Se¬
curities Corp. and Eastman Dillon, Union Securities &
Co. (jointly). Bids — Expected to be received Dec. 6
up to 10:00 a.m. (CST) at Room 1100, 231 So. La Salle
St., Chicago 4, 111.
•

Nu-Line

Sept. 28,

Industries,

Inc.

1960 filed 200,000 shares of common stock, of

which

175,000 shares are to be offered for the account
issuing company and 25,000 shares, representing
outstanding stock, are to be offered for the account of
of

the

the issuer's president.

Price—$5.25 per share.

Proceeds

—For
and

stock.
For

66,668

Oct.

Proceeds—For

Mountain

ing capital and new product development. Office—7808
Carpenter Freeway, Dallas, Texas. Underwriter—Baker,
Simonds & Co., Detroit, Mich, (managing).

derwriter—Pacific Coast Securities Co., 240 Montgomery

1960,

Western

Sept. 13, 1960 filed 225,000 shares of
—To be supplied by amendment.

Newton

stock.

subordinated

Development

-••••■

17,

—

Inc.

common

pany, organized in 1958 under the name Arrow Elec¬
tronics International, Inc., imports and sells electronic
and high fidelity parts and equipment.
Proceeds—To

Inc.

Nov.

facture and sale of mobile homes. Proceeds—For work¬

Mich. Underwriter—None.

—To

National

Jan.

•

Dowd & Co. Inc., 39

City (managing).

pected in late December.

$1),

ferred

Merrill Lynch, Pierce,

Office

homes, trailers, boats,
working capital. Office—100 E. Michigan Ave., Jackson,

corporate
new

indebtedness,

corporate purposes.

—

each

Prices—For common, $10 per
share; for preferred, $100
per share. Business—The purchase of conditional sales
contracts from dealers in

Proceeds—For general funds. Of¬
fice—198 Broadway, New York
City. Underwriter—R. F.

purposes, including the
redemption of pre¬
stock and expenses incidental to the
opening of
outlets. Address—Yorktown,
Ind.
Underwriter—

short-term

general

Nov.

of record on the basis of two shares
for each three such shares held and one

preferred

new

reduce

with the balance
—
Miami Inter¬
national Airport, Miami, Fla. Underwriter — Lehman
Brothers, New York City (managing). Offering—Ex¬

Un¬

Mobile Credit Corp.
Sept. 14, 1960 filed 25,874 shares of common stock and
1,000 shares of $100 par 6% cumulative convertible pre¬
ferred stock.

and

for

the
common

offered for subscription by common stockholders on
one share for each
eight shares held. Pricebe

tion

holders

1960, filed 228,346 shares of

the basis of
To

1960 filed

nated

the

Minneapolis Gas Co.
Nov.

000

Marsh

850

—$5 per share. Business—Production of beryllium oxide.
Proceeds
To pay two corporate
notes; plant improve¬
ments; research and experimentation with flotation

and data processing systems. Pro¬

weapons

Business

and

—

(12/12-16)
110,000 shares of common stock (par '
Price—$4.25 per share. Business—The design

cents).

stock

Mineral Concentrates & Chemical
Co., Inc.
Nov. 10, 1960 filed
75,000 shares of common stock. Price

unit.

—

plant additions, acquisitions,'
and working capital. Office—825
Bronx River
Ave., New '
York City,
Underwriters—Kidder, Peabody & Co., Leh¬
man
Brothers, and Model, Roland & Stone, all of New
York City
(managing). *
*v'

1960 filed

per

—

(12/7)

Madigan Electronic Corp.

—

one

financing in the home building industry.
ceeds
To start its lending activities. Address
Box 886, Rapid
City, S. D. Underwriter—None.

Oct. 27, 1960 filed
$5,000,000 of convertible subordinated
debentures, due Dec. .1, 1980. Price—To be supplied
by
amendment. Proceeds—For

Oct. 5,

interim

—

•

units

Price

various

Corp.

Sept. 8, 1960, filed 1,169,470 shares of common stock and
$994,050 of 6% debentures, to be offered for public sale

scrap nylon into pellets for use in gears

products,

com¬

Proceeds—To repay short-term bank
loans, which
Sept. 30 amounted to $31,529,000. Office—1100 First
National Bank Bldg.

Oct. 26

sion of waste

life insurance

York, N. Y.

stock

subsidiaries, including

pany.

Farmingdale, N. Y. Underwriters

Co., Inc. and Sulco Securities, Inc.,

New

Airlines, Inc.
$10,288,000 of convertible subordi¬
debentures, due 1975, to be offered for subscrip¬
by holders of the outstanding common stock on the

of notification) 100,000 shares of
(par 25 cents). Price — $2.75 per share.
Proceeds—For capital and surplus accounts. Office—318

National

(letter

stock

common

notification) 100,000 shares of
(par $1). Price—$3 per share. Business—

stock

common

Inc.

(letter

Underwriters—White, Weld & Co., New York City, Yarnail, Biddle & Co. and Stroud & Co., Inc., both of Phila¬
delphia (jointly).

Oct.

Living Aluminum,
3,

Mid-America Life Insurance Co.
Oct.

Nov. 23.
•

Underwriters—M. L. Lee & Co., Inc

Blauner

City (managing). Offering—Indefinite.

manufacture and selling of fiber
glass swimming
pools. Proceeds—$125,000 will be used to purchase ma¬
chinery
and
equipment; $200,000 to purchase raw
materials, parts and components; $40,000 for sales and
advertising promotion; $30,000 for engineering and de¬
velopment; and the balance will be added to working
capital. Office—Renovo, Pa.
Underwriter—Grant, Fon¬
taine & Co.
Oakland, Calif. Note—Statement effective

Oct.

Milton

capital equipment, research, sales development,
working capital. Office—Minneapolis, Minn. Under¬

writer—Kalman &

Co., Inc., St. Paul, Minn, (managing).

—

general corporate purposes. Office—Ft. Washington, Pa.

Continued

page

£3

The Commercial and Financial Chronicle

(£210)

Continued from page 37

Photogrammetry, Inc.
10, 1960 (letter of notification)

Aug.

it Nuclear Engineering Co., Inc.
Nov. 17, 1960 (letter of notification) 30,000 shares of
common
stock (par 33% cents).
Price—$10 per share.
Proceeds—To repay a bank loan, account payable and
for working capital. Office—65 Ray Street, Pleasanton,
Calif.
Underwriter — Walter C. Gorey Co., San Fran¬
cisco, Calif.
it Ostheimer & Co., Inc.
Nov. 22, 1960 (letter of notification) 480 shares of com¬
mon stock (par five cents).
Price—$20 per share. Pro¬
ceeds—To go to a selling stockholder.
Office—1510
Chestnut Street,
•

Philadelphia, Pa. Underwriter—None.

(12/5)

Faddington Corp.

Sept. 28, 1960 filed 36,498 shares of outstanding common
6tock. Price—To be related to the price of the stock on
the American Stock Exchange at

the time of the public

offering. Proceeds—To selling stockholders. Office—630

Ave., New York City. Underwriters—Lee Higginson Corp. and H. Hentz & Co., both of New York City
(managing).
•

Pall

Corp.

(12/12)

27, 1960 filed 80,000 shares of class A stock (par $1),
of which 30,000 shares are to be offered for the account
of

the

issuing

company

and 50,000 shares, representing

account of

outstanding stock, are to be offered for the

thereof. Price—To be supplied by
amendment. Business — The firm produces metal and
plastic filters for defense and consumer industries. Pro¬
the

holders

present

ceeds—For

to finance

expansion, working caiptal, and

the company's entry into fibre glass manufacture. Office
•—30 Sea Cliff Ave., Glen Cove, L. I., N. Y. Underwriter
•—L.

Rothschild

Palm

Co., New York City

Developers Limited

(managing).

ital.

Terrace, Centreville, Nassau, Bahamas. Under¬
& Co., Inc., New York City.

writer—David Barnes

Co., Inc.

cents), of which 42,500 shares

are to be offered for the
of the company and 72,500 shares, representing

outstanding stock,

are

to be offered for tne account of

the present holders thereof. The remaining 10,000 shares
have been acquired by the underwriter and Hampstead

Investing Corp., as a finder's fee. Price—$5 per share.
Business—Developing and producing automatic multiple
needle and specialized sewing equipment. Proceeds—For
general corporate purposes. Office — 16 Leliart's Land.
East Paterson, N. J. Underwriters — Amos Treat & Co.,
Inc. and William Stix Wasserman &

Co., Inc., New York,
Offering—Expected in early December.

N. Y.

922

of
share. Pioceeds

short term note and working cap¬

Burlington Ave., Sliver

Spring, Md.
Planning Co., Washing¬

Investment

ton, D. C.
•

Hk-Quik, Inc.

Thum."

Paper Co., Inc. (12/12-16)
Oct. 14, 1960 filed $750,000 of 7% unsecured subordinated
notes due 1964 and

offered

100,000 shares of

ness—The

stock to be

common

in units of $7.50 of notes and

one

share of

Price—To be supplied by amendment.

stock.

mon

manufactures facial and

company

com¬

Busi¬

toilet

There

are

such

now

markets.

Proceeds-

Together with other funds, the proceeds will be used
to purchase substantially all of the assets of Plymouth
Rock Provision Co., Inc. Office—Baker Bldg., Minneap¬
olis, Minn. Underwriter—A. C. Allyn St Co.. Inc.,' New
York City have withdrawn as underwriters. Note—This

loans.

Office

Underwriter

—

485

Lexington Ave., New York, N. Y.
Hill, Darlington St, Grimm, New York,

N. Y.

was

Oct.

26,

Nov.

withdrawn

Electronics

Pioneer

17,

Corp.

Proceeds—For

general corporate

purposes.

Ursula Street, P. O. Box 187,

■—Copley &
•

Peerless

Co.,

Aurora, Colo.
Colorado Springs, Colo.

Tube

Co.

Office—403
Underwriter

1960 filed 217,902

shares of common stock, to
outstanding common on the
basis of one new share for each share held. Price—$1
per share. Proceeds — To retire current liabilities, for
capital expenditures, and for working capital* Office—
2235 S. Carmelina Ave., Los Angeles, Calif. Underwriter
—None.

Plastics & Fibers, Inc.
June 14 (letter of notification)

150,000 shares of

common

stock (par 20 cents). Price—$2 per

share. Proceeds—For
Office—Whitehead Avenue,

general corporate purposes.
South

River, N. J. Underwriter—Pearson, Murphy &
Co,, Inc., New York, N. Y. Note—The underwriter states
that this offering will be delayed.

Nov.

16,

1960

(letter

Inc.
notification) 75,000
cents).
Price — $4

Ansonia, Conn. Underwriter—J.
New York, .N Y.

tion and sale of collapsible metal tubes and aerosol con¬
tainers. Proceeds—To increase automation of production

lines, for research and development, and the balance
for working capital.
Office—Bloomfield, N. J.
Under¬
writer—Winslow, Cohu & Stetson, Inc., New York City.
Penobscot Chemical Fibre Co.

(12/12-16)

Oct. 24, 1960 filed $3,250,000 of convertible subordinated
debentures, due 1980. Price—To be supplied by amend¬
ment. Business—Makes wood
to
.

the

,ers.

users,

pulp, which it sells directly
nearly all of whom are paper manufactur-

Proceeds—For

construction, and for the reduction

of indebtedness incurred, for construction.
Office—211
Congress St., Boston, Mass. Underwriter—Coffin & Burr,
Inc., Boston, Mass. (managing).
•

Philadelphia Aquarium, Inc.
Oct. 14, 1960 filed $1,700,000 of 6% debentures due 1975
and

Coburn

Associates,

170,000 shares of capital stock (par 50 cents) to be
in units, each consisting of one
$100 debenture
shares of stock. Price—$150 per unit. Business—
Operation of an aquarium in or about Philadelphia.

Proceeds—To acquire ground and to construct

aquari¬
building or buildings. Office—2635 Fidelity-Philadel¬
phia Trust Building. Philadelphia, Pa.
Underwriter—
an

Stroud & Co.,

Inc., Philadelphia, Pa. Offering—Expected

in January.

Philippine Oil Development Co., Inc.
30 filed 103,452,615 shares of
capital stock being
offered for subscription by stockholders of record
Aug.
25, at the rate of one new share for each 5% shares held
with rights to expire at 3:30 p.m. on Dec. 14. Price—U. S.
price is 1.3 cents per share; Philippine price is 3 centavos
March

per share. Proceeds — To be added to the company's
working capital. Office—Soriano Bldg., Manila, Philip¬
pines. Underwriter—None. Note—The subscription offer

has been extended.

construction.,. .Office

Proceeds —For

—

Park

Underwriter — Merrill Lynqh,
Pierce, Fenner & Smith Inc., New York City (manag¬
ing). Information Meeting — Scheduled for Dec. 8 ;at
Place,

11:00

Newark,

a.m.

it Fuget Sound Development Co.r Inc.
Nov. 18, 1960 (letter of notification) 2,000,000 shares/of
stock (no par). Price—10 cents per share. Pro¬
ceeds—For expenses in exploring for oil and natural gas.
Office—SeaVue Theatre Building, Box 463, Blaine, Wash.

Underwriter—None.

Corp.
Aug. 3, 1960 filed 250,000 shares of common; stock, of
which 200,000 shares are to be offered for the account
of the issuing company and 50,000 shares, representing
outstanding stock, are to be offered for the account of
Joseph Stein, President, the present holder thereof.
Price—To be supplied by amendment. Business—Makes
and sells electronic, air purifiers and range hoods. Pro¬
ceeds
To retire indebtedness, with the balance for
—

1960 filed 175,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
company is primarily a government defense con¬

tractor,

supplying products

and

technology. Proceeds

—

services
To repay

requiring ad¬
indebtedness

and.jth^jDalanq^ for, working capital. Office—3781 E. 77th
St.,

Cleveland, Ohio. Underwriters—Hemphill,

Co. and Estabrook & Co.

Noyes &
Offering—Expected in January.

derwriter

—

Bache

Office—New Haven,
Co., New York City
..

....

•

Conn. Un¬
(managing).
•

Corp.

Sept. 27, I860 filed 100,000 shares of common stock. Price
per share. Proceeds—For working capitalv($217,-

$3.50

250) and production machinery and equipment
Office—Little Falls, N. J. Underwriter—Robert
&

($50,000).

Edelstein

Co.; Inc., New York City. Offering—Expected some¬
■:

Sept.

28,

1960

(letter

.•

■

(1/5)

Corp.

85,700 shares of

of notification)

common stock (par $1). Price—$3.50 per share. Business
—Manufacturers of electronic equipment. Proceeds—For

general

corporate

Office

purposes.

190

—

Duffy Ave.,

Hicksville, N. Y. Underwriter—Blaha & Co., Inc., 29-28
41st Avenue, Long Island City 1, N. Y.
■
..\v'
•

Rajac Self-Service, Inc.
15, 1960 filed 154,375 shares of common stock (10c
par). Price—$3 per share. Proceeds—$30,000 will be used
to pay an outstanding note; $87,500 will be used for the
acquisition, constructing, and equipping of an additional
Nov.

•^

Pocket Books, Inc. (1/10)
Nov. 17, 1960 filed 600,000 outstanding shares of common
stock (par 50 cents). Price—To be supplied by amend¬
ment.

Business
The issuer publishes and distributes
paperback books, distributes publications of other pub¬
lishers, and sells phonograph records. Proceeds—To sell¬
ing stockholders. Office—630 Fifth Ave., New York City.
—

Underwriters—White, Weld & Co. and Goldman, Sachs
& Co., both of New York (managing).
Polysonics, Inc.
18, 1960 (letter

cent

par

—The

common

$22,500 will be used to cover the expenses of
offering the stock/ and the balance will be used to reduce
purchase equipment. Office—Mt. Ver¬
non, N. Y. Underwriter—The James Co., 369 Lexington
plant,

indebtedness and

Avenue, New York 17, N. Y. Offering—Expected some¬
time in January.
" V
:
/
Real

Nov.
1

expenditures.

capital

Radar Measurements

The

vanced

Puritron

time in January,*

Nov. 22,

notification)

70,000

stock. Price—$3 per share. Business

company, formed last

July, will act as theatrical
producers and will produce jazz festivals; concerts/ rec¬
The firm also plans to enter

the

development and merchandising of new commercial
color sound process for industrial and commercial ad¬
vertising. Proceeds—For working capital, Office—480
Lexington Avenue, New York City. Underwriters—M. H.
Meyerson & Co., Ltd., 15 William Street, New York City
Karen Securities Corp., New York City,
Investors, Brooklyn, New York. Offering—

Oct.

Estate

Mutual

Fund

1960 filed 200,000 shares of beneficial

14,

Price—$5

per

investment

interest.
share. Business—An open-end real estate

trust

Office —606

specializing in

Bank

Distributor—Real

Diego,'Calif.

-•

America

Estate

Mutual

San
i

• Reeves Soundcraft Corp.
;
Nov. 23, 1960 filed 150,000 shares of outstanding com¬
mon stock,
Price—To be supplied by amendment. Busi¬
ness— The
manufacture and distribution of magnetic
tape, film and recording discs. Proceeds — To the Pru¬
.

dential

Popell

(L. F.) Co.
Nov. 18, 1960 filed 99,996 shares of

common stock to be
for subscription by common stockholders at the
rate of one share for each three shares of common stock

offered

held.

Price—To be supplied by amendment/ Business—

Distribution, sale and

installation of building, insulat¬
ing and acoustical products. Proceeds—For plant con-,
struction; expansion of its distribuiton of Perma-Glaze
and

working capital. Office—2501 Northwest 75th Street,
Miami, Fla. Underwriter—To be supplied by amend¬
ment.

•

■

Porce-Cote

Research

Development Corp.
Nov. 18, 1960
(letter of notification) 50,000 shares of
class A stock (par 10 cents). Price—$5 per share. Busi¬
ness—Research
Proceeds—For

and

development
corporate

general

of chemical products.
purposes.

Office—336

Uniondale Ave., Uniondale, N. Y.
Underwriter—Subur¬
ban Investors Corp., Uniondale, N. Y.
Potomac

Electric

Power Co.

(12/7)

Nov. 10, 1960 filed $40,000,000 of 35-year first mortgage
bonds. Price—To be supplied by amendment. Proceeds—

Diego/ Calif.

Distributors, Inc., San

.T-"

investment real estate.
Bldg..

Insurance

holder.

Expected in mid-December.

offered
and 10

ment.

Pneumodynamics Corp.

(managing);

Nov. 22, 1960 filed 150,000 shares of capital stock. Price
—To be supplied by amendment. Business—The produc¬

it FubSic Service Electric & Gas Co. (12/13)
j
Nov. 23, I960 filed 250,000 shares of $100 par cumula¬
tive preferred stock.
Price—To be supplied by amend¬

Offering—Postponed.

shares of
common
stock
(par 10
per share.
Business—Manufacturers
of assorted
wires, including
special wires for high temperature controls.; Proceeds—
For general corporate purposes. Office—63 Main Street,

and Selected

(1/11)

20 East Mountain St., Fayetteville, Ark.
Investments, Inc., a subsidiary

—

•common

be offered to holders of the

ords and commercial films.

it Peerless Mortgage Co.
Nov. 16, 1960 (letter of notification) 430,000 shares of
common stock (par 20 cents).
Price—60 cents per share.

Office

poses.

statement

tis¬

sues. Proceeds—For acquisition of
property, to acquire
machinery and equipment, and for repayment of certain

(12/15)

Risk Life Assurance Co.

Preferred

Aug. 18, 1960 filed 300,000 shares of common stock. Price
—$5 per share. Proceeds — For general corporate pur¬

of the issuer.

Patrician

St., Los Angeles, Calif. Underwriter—Garat & Polonitza,
Inc., Los Angeles, Calif.

Underwriter—Preferred

July 27, 1960 filed 550,000 shares of common stock (pai
$1). Price—To be supplied by amendment. Business—
The organization and operation of self-service markets
in Florida under the names of "Pik-Quik" and "Tom

Oct. 17, 1960 filed 125,000 shares of class A stock (par 75
account

—

Underwriter—First

(12/27-30)

ceeds—To buy land, and for related corporate purposes.

Pathe Equipment

Office

Plated Wires & Electronics,

Sept. 8, 1960, filed 100,000 shares of common stock
(par 1 shilling). Price — $3 per share. Business — The
company intends to deal in land in the Bahamas.
Pro¬
Office—6

(par $1). Price—$3.50 per

—For retirement of

Fifth

Oct.

stock

common

13,000

Thursday, December 1, 1960

Office—15 Great Pasture Road,

Co.

selling stock¬
Danbury, Cohn.
Underwriter—Emanuel, Deetjen & Co., New York City
(managing). Offering—Expected some time in January.
•

Rescsto

Chemical,

America,

the

(12/12-16)

Inc.

Aug. 29, 1960 filed 200,000 shares of common stock (par
10 cents).
Price—$2.50 per share. Business—The firm
makes and sells protective coatings for packaging and

fabrics, and products used in insulation/ Proceeds—For
working.capital ($235,358), with the balance for ma¬
chinery, equipment, and general corporate purposes.
Office ,— New. .Castle County Air, Base, .New Castle
County, Del. Underwriter—Amos Treat & Co., Inc., New
York City.
/ ■' v\
/"A ■;
;
■

Restaurant
Nov.

Associates, Inc.

245,000 shares of $1 par common
195,000 shares will be offered for the
issuing company and 50,000 shares,
representing outstanding stock, are to be offered for the
account of selling stockholders. Price—To be supplied by
amendment. Business
The
issuer operates a wide
stock,

1960 filed

16,

of which

account

the

—

To retire $9,725,000 of bank loans and for construction.

variety of restaurants, coffee shops, and cafeterias, most¬
ly in New York City, including The Four- Seasons and

Office—929

The Forum of the Twelve Caesars. Proceeds—For work¬

"E"

St.,

N. W.,

Washington, D. C. Under¬

writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.

Inc.; First Boston
Corp.; Dillon Read & Co. and Johnston, Lemon & Co.
(jointly); Kidder, Peabody & Co., Merrill Lynch, Pierce,
Fenner &

Smith, White, Weld & Co. and Salomon Bros.

Hutzler
(jointly); Lehman Brothers and Eastman
Dillon, Union Securities Corp. (jointly). Bids—Tenta¬
tively expected on Dec. 7.
•

Precisioncraft

Electronics, Inc.
Nov. 14, 1960 (letter of notification) 150,000 shares of
capital stock (no par). Price—$1 per share. Proceeds—
To retire

tories

and

bank
for

loan

and

purchase building inven¬

working capital.

Office—5335 W.

102nd

ing capital and expansion. Office—515 W. 57th St., New
City. Underwriter—Shearson, Kammill & Co., New
York City (managing). Offering — Expected in early

York

January.
•

Revlon,

Inc.

(12/19) :

Oct. 28, 1960 filed 130,000 shares of outstanding common
stock

(par $1). Frice—To be related to the price of the

firm's shares on the New York Stock Exchange. Proceeds
To two company
officers, the selling stockholders. Office
—666 Fifth Ave., New York
City. Underwriters—Lehman
Brothers and Reynolds & Co.

Inc., both

City

(managing).

Nov. 18.

Note—This
«

statement
.

of New York
was
effective
.

Volume 192

Number 6008

The Commercial and Financial Chronicle

Riddle Airlines, Inc.
Aug. 19, 1960 filed $2,250,000 of 6%' subordinated con¬
vertible debentures. Price-^At 100% of principal amount.
Proceeds— To be used as operating capital to fulfill
M. A. T. S. contract, and to acquire aircraft. Office—In¬
ternational. Airport, Miami; Fla.' Underwriter—James H.
Price & Co., Coral Gables, Fla., and New York Citv.
•

Dowell, Chicago, 111. (managing). Offering—Expected in

Co., Inc. (12/19)
17, 1960 filed $4,500,000 of convertible subordinated
debentures, due 1980. Price—To be supplied by amend¬
.

The firm manufactures medical and

—

Proceeds — To retire $3,350,000 of
with the balance for general cor¬
porate purposes. Office—Ritter Park, Rochester, N. Y.
Underwriter—Lehman Brothers, New York City (man¬
_

;,.i

Nov.

stock

(par $20),

Prices—To be supplied by amendment
selling stockholders, the executors of the

estate of Otto Haas, former Board Chairman'and Presi¬
dent. Office—222 West Washington Square, Philadelphia,:

Underwriters—Drexel & Co., Philadelphia, Pa., arid
Kidder, Peabody & Co., New York City (managing). Offering—Expected in early January.
Pa.

Broadway, New York 21, N. Y.

Havener Securities
•

definite.

representing outstanding stock, are to be offered for the
account of the present holders thereof. Price—To be
supplied by amendment. Business—The firm produces a
diversified line of popular priced sports wear. Proceeds
—For machinery and equipment, leasehold improve¬
ments, to finahce additional accounts receivable and in¬
ventories, and for working capital. Office—1372 Broad¬
way, New York City. Underwriter—Shearson, Hammill
& Co., New York City (managing).

Service

'•

■

time in December.
•

research,

Telephone & Telegraph Co. (12/5)
10, 1960 filed $75,000,000 of debentures due 1997.
Proceeds—For construction. Office—Atlanta, Ga. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders; Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co., both of New York City. Bids—Expected on Dec.

development and production of

11:30
•

room

a.m.

2315, 195 Broadway, New York City

(EST).

Soutnwest Gas

Corp. (1/4)
7, 1960 filed 150,000 shares of common stock. Price
—To be supplied by amendment. Business—The sale and
distribution' of natural gas for domestic, commercial,
agricultural; and industrial uses in parts of California,
Nevada, and Arizona^ Proceeds—To reduce indebtedness,
with the balance for working capital. Office—2011 Las
Vegas Blvd. South, Las Vegas, Nev. Underwriter—East¬
man
Dillon, Union Securities & Co., New York City
(managing).
\
Nov.

plastics

electronic instrumentation systems. Proceeds—For
working -capital, the acquisition arid development of
Plymouth Industrial Products, Inc., Sheboygan, Wis., and
for expansion. Office—Nprthfield, Minn. Underwriter—
and

Craig-Hallum, Inc., Minneapolis, Minn, (managing).
• School
Pictures, Inc.
;
Sept. 28, I960 filed 100,000 outstanding shares of Common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders. Office — 1610 North Mill St.,
Jackson, Miss. Underwriters—Equitable Securities Corp.
of New York l City, and Kroeze, McLarty & Co.,* of
Jackson, Miss. Offering—Indefinite.
r/ '
;
•

Southern Bell

Nov.

*. (G. T.) Schjeldahl Co.
;//•/
*'••
Nov. 28, 1960 filed 9,000 outstanding shares of common
stock and $765,000 of convertible subordinated deben¬
tures, due 1971. The debentures Will be offered to holders
of the outstanding common stock on basis of $100 prin¬
cipal amount of debentures for each 100 common shares
held. Price—To, be supplied by amendment. Business—
The

South Central Natural Gas

Corp. (12/20)
Oct. 13, 1960 filed 250,000 shares of common stock (par
10 cents). Price—$3 per "share. Business—The company,
which was organized in June 1960, is in the business of
producing natural gas and oil. Proceeds ^ For working
capital, with the balance for rental payments, loan re¬
payments, drilling, and related expenditures. Office—
1300 Oil & Gas Bldg., New Orleans, La. UnderwriterWillis E. Burnside & Co., Inc., New York City.
:

V-Seaboard Homes, Inc.
^
,
'
Nov. 7, 1960 (letter of notification) 100,000 shares of
common stock (par 10 cents) . Price-i=-$3 per share. Busi¬
ness

—

Manufacture, assembly and sale of homes and

home sectional components. Proceeds—For

general

cor¬

porate purposes. Office—200 Saw Mill River Rd., Haw¬
thorne; N. Y; Underwriters—Richard Bruce & Co., Inc.
and Fox &

Walters, Inc., New York, N. Y.
; :
Self Service Drag Corp.
Sept. 26, 1960 (letter of notification) $150,000 of 10-year
6% convertible debentures and 75,000 shares of common
stock (no par) to be offered in units Of $100 of deben¬
tures and 50 shares of common stock. Price
$200 per
unit. Proceeds
To move and equip a new warehouse;
pay off certain bank indebtedness and for new lines.
Office—2826 Mt. Carmel Ave., N. Hills, Glenside, Pa.
Underwriter—Woodcock, Moyer; Fricke & French, Inc.,
Philadelphia, Pa. Offering—Expected in early January.
.

—

'Shatterproof Glass Corp.
Oct. 12, 1960 filed 100,000 shares of common stock (par
$1), of which 50,000 shares are to be offered for the
account of the issuing company and 50,000 shares, repre¬

senting outstanding stock, are to be. offered for the ac¬
count of the present holders thereof. Price—To be sup¬
plied by amendment. Business—The company makes and
sells laminated safety plate and sheet glass, primarily
to the automotive replacement market, and sells its prod¬
ucts for use as original equipment to bus, truck, tele¬
vision, and farm and road equipment manufacturers.
Proceeds—To repay current short-term bank loans in¬
curred to supplement working capital. Office — 4815

fc-V

Southwestern

Capital Corp.

Sept. 30, 1960 filed 1,000,000 shares of common stock.
Price—$3 per share. Business—A closed-end investment
company. Proceeds—For investment purposes. Office—
1326 Garnet Ave., San Diego, Calif. Underwriter—None.
Southwestern Oil Producers,

Inc.
shares of common stock. Price—
$2 per share*. Proceeds^-For the drilling of three wells''
and the balance for working capital. Office—2720 West
Mockingbird Lane, Dallas. Underwriter — Elmer K."
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.

March 23. filed 700,000

Speedee Mart, Inc.
Nov. 21, I960 filed 90,000 shares of common stock. Price
—To be supplied by amendment. Business—Enfranchis¬
ing others to manage and operate retail food stores under
the name of "Speedee Mart." Proceeds—For acquisitions,
equipment and store inventories. Office — 7988 Normal
Ave., La Mesa, Calif. Underwriter—J. A. Hogle & Co.,
Salt Lake City, Utah.
Speedry Chemical Products Inc. (12/20)
Sept. 28, 1960 filed $2,000,000 of convertible subordinated
debentures, due Dec. 1, 1975, and 60,000 shares of class
A common stock (50c par). Prices—To be supplied by
amendment. Business—The company makes special pur¬
pose inks and devices used in their application. Proceeds
—For expansion, acquisitions,
and the retirement of

bank

loans.

Office

91-31

121st

St., Richmond Hill,
Queens, L. I., N. Y. Underwriter — S. D. Fuller & Co.,
New York City (managing),
StanciI-Hoffman

—

Corp.

(12/15)

Sept. 30, 1960 filed 150,000 shares of capital stock. Price
—$2 per share. Business — The research, development,
manufacture, and sale of magnetic recording equipment.
Office — 921 North Highland Ave., Hollywood, Calif.
Underwriter—Pacific Coast Securities Co., San Francisco,
Calif.

City, and Roman & Johnson, of Ft. Lauderdale, Fla.

(letter of nt^ification) 70,000 shares of
(par 10 cents). Price—$4.25 per share.
capital.
Office—809 Kennedy
Bldg., Tulsa, Okla. Underwriters—Batten & Co., Wash¬
ington, D. C. and F. R. Burns & Co., Oklahoma City,
Sept.

1960

stock

common

Proceeds—For working

Okla,

Solitron Devices, Inc.
Sept, 9, 1960 filed $400,000 of 6% subordinated convert¬
Price—At par. Business—The
company makes and sells solid state devices, Proceeds—
For general corporate purposes, Office—67 South Lex¬
ington Ave., White Plains, N. Y. Underwriter—Casper
Rogers & Co., New York City. Offering—Expected some¬

& Department
Stores, Inc.
Sept. 26, 1960 filed 163,636 shares of common stock, of
which 127,273 shares are to be offered for the account
of the issuing company and 36,363 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price — To be supplied by
amendment. Business — The company operates a depart¬
ment store and gasoline service station the use of which
is restricted primarily to' veterans, military personnel,
employees of non-profit organizations, and employees of
firms doing government contract work. Proceeds—For
general corporate purposes, including debt reduction and
working capital. Office—3176 Frontier St., Sari Piego,
Calif. Underwriter — Dempsey-Tegeler & Co., St. Louis,
Mo. (managing). Offering — Expected in mid-to-late
"•

ible debentures, due 1967.

December.

•

1960 filed 600,000 shares of common stock (no
par). Price—To. be Supplied by amendment. Business—
The company was engaged exclusively as a contract and
charter carrier until July 1, I960, when it diversified by
acquiring Illinois Shade Cloth Corp. Proceeds—For gen¬
eral corporate purposes. Office—3000 No. Clybourn Ave.,
Burbank, Calif. Underwriters — Auchincloss, Parker &
Redpath and Allen & Co., both of New York City (man¬
aging). Offering;—Indefinitely postponed.

Underwriter—None.

(12/12)
common stock

and
$350,000 of 9% subordinated sinking fund debentures,
due Nov. 1, 1985, with warrants, to be offered in units
consisting of six common shares, a $10 debenture, and
two warrants.
Price—To be supplied by amendment.
Proceeds—For construction, mortgage funds, and work¬
ing capital. Office—Miami Beach, Fla. Underwriter?—
Aetna Securities Corp. and D.- Gleich Co., both of New

Oct. 27,

stock.

Save-Co Veterans &

•

Standard & Shell Homes Corp.

Starfire Boat Corp.

Slick Airways, Inc.

'
notification) 1,745 shares of
Price—At par ($100 per share). Proceeds
—To purchase land, equipment, supplies and for working
capital. -- Office —430 W. 40th Street, San Bernardino,
Calif.

(12/7)

York

•

Simplex Wire & Cable Co.

Sept. 28, I960 filed .118,000 shares of outstanding capital
stock., Price—1To be supplied by amendment. Office—
Cambridge, Mass. Underwriter—Paine, Webber, Jackson
& Curtis, New York City
(managing). Offering—In¬

':••• -*•

Russ Togs, Inc.
(12/12-16)
\ '
Oct. 27, 1960 filed 150,000 shares of $1 par class A stock
of ; which
100,000 - 'shares • are to * be* o f f e r e d for
the account of the issuing company and 50,000 shares,

common

Standard Pressed Steel Co.

—

Sept. 27,1960 filed 112,760 shares of outstanding common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders. Office—Jenkintown, Pa. Under¬
writer—Kidder, Peabody & Co., New York City (man¬
aging).

^ Sanberec, Inc.
NOV. 17, 1960
(letter

Underwriter
Corp., New York, N. Y.

Nov. 1, 1960 filed 210,000 shares of

•

de¬

Proceeds—For general corporate purposes. Office

—657

Business—Designs and produces automobile hub caps,
washroom dispensers and other janitorial supplies. Pro¬
ceeds—To repay outstanding bank loans and to increase
inventories.
Office —7701
East
Compton Boulevard,
Paramount, Calif.
Underwriter — H. Hentz & Co. and
Federman, Stonehill & Co., both of New York City
(managing).
Offering — Expected in late December to
early January.

■

17^ I960 filed 9,000 shares of outstanding common'

Proceeds—To

Business—Manufacturers of electrical

vices.

of which
shares will be offered for public sale by the
company and 100,000, being outstanding shares, by pres¬
ent stockholders. Price^To be supplied by amendment.
100,000

Rohm & Haas Co.
Nov.

(12/5)
(letter of notification) 50,000 shares of
stock (par 20 cents). Price—To be supplied by
1960

amendment.

it Shore-Caliievar, Inc.
25, 1960 filfcd 200,000 common shares,

dental equipment.

short term bank loans,

aging).

common

itShinn Industries Inc.
Nov. 29, 1960 filed 150,000 shares of common stock, Price
—$6 per share. Proceeds—To repay a bank loan, for ex¬
pansion and inventory, and for working capital. Office
—Wilmington, Del, Underwriter—Myron A. Lomasney &
Co., New York City.

Ritter

Business

Aug. 26,

mid-to-late December.

Standard Instrument Corp.

•

Cabot St., Detroit, Mich. Underwriters—Dempsey-Tege¬
ler & Co., St. Louis, Mo., and Straus, Blosser & Mc¬

Nov.

ment.

(2211)

Crest Homes,

Steel

Inc.

22, 1960 filed 180,000 shares of common stock;
$45,000 of 8% subordinated sinking fund debentures ($10
face amount), due Sept. 1, 1981; and 45,000 warrants
exercisable at $15 for the purchase of two shares and
one debenture
(for which 90,000 underlying common
shares and 45,000 underlying 8% debentures were also
filed). The securities will be offered in units, each unit
to consist of four shares of stock, one $10 face amount
debenture and one warrant. Price—$18 per unit. Pro¬
ceeds—For the financing of homes sold by the company
and its subsidiary, and for working capital. Office—
Center Square, Pa. Underwriters—Marron, Sloss & Co.,
Inc., New York City and Harrison & Co., Philadelphia,

Nov,

Pa.
•

Still-man Manufacturing Corp.

(12/13)

Aug. 22, i960 filed 150,000 outstanding shares of class A
stock (par 75 cents). Price—To be supplied by amend¬
ment. Business—The company makes heating elements
for small appliances and components for major appli¬
ances,

and related items. Proceeds—To selling stockhold¬

Office—429-33 East 164 St., New York City, Under¬
writer—Francis I. duPont & Co., New York City.

ers.

Straus-Duparquet Inc.
Sept. 28,1960 filed $1,000,000 of 7% convertible subordi¬
nated debentures, due 1975. Price—At par. Office—New
York City. Underwriter—None; the offering will be made
through officials and employees of the company,
Summers Gyroscope Co.
Aug. 29, 1960 filed 6,403,213 shares of common stock, of
which 5,702,877 shares are being offered by Atlas Corp.
to the holders of its outstanding common of record Nov.
9 on the basis of one Summers share for each two Atlas
shares held, and 700,336 shares being offered by Mertronics Corp. to stockholders of record Nov. 9 on a sharefor-share basis with rights for both offerings to
on

expire

Dec. 5. Price—75 cents per share. Purpose—The pur¬

pose

of the offering is to effect a divestiture by Atlas and
interest in Summers (in order

Mertronics of their 71,1%
to

dispose of matters pending before the CAB. Office—
Broadway Ave., Santa Monica, Calif. Underwriter

2500

—None. Note—All Summers* stock not subscribed for by

Atlas holders on Dec, 19 will be purchased at'the sub¬
scription price by Floyd B, Odium, former president of
Atlas,
•

(12/5)
250,000 shares of class A stock (par
$1), of which 50,000 shares will be offered for the ac¬
count of the issuing company and 200,000 shares, repre¬
senting outstanding stock, to be offered for the account
of the company president and his wife, the selling stock¬
holders. Price—To be supplied by amendment. Business
—The company makes and sells stapling machines and
various other office supplies, and has a stock interest in
Swingline, Inc.

Oct. 25, 1960 filed

Wilson

sells

Jones

Co.? of Massachusetts, which makes and

and other commercial stationery
supplies. Proceeds—For new plant and general corporate
purposes of a subsidiary, Ace Fastener Corp., of Illinois.
Office—32-00 Skillman Avenue, Long Island City, L. I.,
N. Y. Underwriter
Paine, Webber, Jackson & Curtis,
New York City (managing).

record-keeping

—

+ "Taro-Vit"

Chemical

Industries

Ltd*

Nov.

25, 1960 filed 2,500,000 ordinary shares. Price—
$0.60 a share payable in cash or State of Israel Bonds.
Business
The company produces, in Israel, a poultry
food supplement, and pharmaceutical and chemical prod¬
ucts. Proceeds
$750,000 for expansion; $170,000 for
equipment and working capital; and $130,000 for repay¬
ment of a loan. Office — P. O. Box 4859, Haifa, Israel.
—

—

Underwriter—None.
Tech

Laboratories, Inc. (12/5-9)
1960 (letter of notification) 84,000 shares of
stock (par 10 cents). Price—$3 per share. Busi¬
ness—Manufacturers of precision instruments. Proceeds
——For general corporate purposes. Office—Bergen & ^
E. Edsall Blvds., Palisades Park, N. J, Underwriters—,
Carroll Co., and Fialkov & Co., Inc., both of New York
Sept. 28,

common

City.
Continued

page

(2212)

The Commercial and Financial Chronicle

Continued from page 39
Tech-Ohm Electronics, Inc.
June 29, 1960, (letter of notification)

issuer's major activity is the warehousing of grain under
contract to the U. S. Commodity Credit Corp. Proceeds
—For

100,000 shares of

stock (par 10 cents). Price—$3 per share. Pro¬
ceeds—For general corporate purposes.
Office—36-11
common

33rd

Long Island City, N. Y.
Underwriter —
Edward Lewis Co., Inc., New York, N. Y. Note—This
issue was refiled on Sept. 6.

•I

Street,

expansion, working capital, and loans to subsid¬
Office—1235 Shadowdale, Houston, Texas.
Un¬
Dempsey-Tegeler & Co., St. Louis, Mo.
Offering—Expected in mid-December.

iaries.'

derwriter

•

United

Oct.

—This is

Nov.

18, 1960 filed an unspecified number of shares of
common stock (par value $1), to be offered to common
stockholders for subscription. Price—To be supplied by
amendment.
Proceeds—For initial production expenses
of a Telescriber compatible with an A. T. & T. analog

&
!»V

subset; for initial production expenses of facsimile equip¬
ment to be made by its subsidiary Hogan Faximile Corp.,
and the balance of the reduction of indebtedness.

■f

•—8700 Bellanca

ers—Baird

Avenue, Los Angeles, Calif.

& Co. and Richard J.

Buck & Co., both of

Chace, Whiteside & Winslow, Inc.,

New York City, and

;V'

Office

Underwrit¬

Boston, Mass. Offering—Expected some time in January.

July 25, 1960 (letter of notification) 150,000 shares of
common capital stock (par 25 cents)
of which 100,000
shares are to be offered by officers. Price—$2 per share.
Proceeds—To lease equipment and for working capital.
Office
7922 Melrose Ave., Hollywood, Calif. Under¬
writer—Raymond Moore & Co.. Los Angeles, Calif.

Fund

Ltd.

(12/12)

per

share.

(par
Business

Proceeds—For

investment.

Office—Bank of Bermuda Bldg., Hamilton,
Underwriters—Kidder, Peabody & Co., Bache

Bermuda.

du Pont & Co., all of New York

City (managing).

Pacific Aluminum

United

Corp.

Aug, 24, 1960 filed $7,750,000 of convertible subordinated
debentures, due 1975. Price—To be supplied by amend¬
ment. Proceeds—Together with other funds, the proceeds
will be used to pay for the erection of a primary alu¬
minum reduction facility. Office — Los Angeles, Calif.
Underwriter—Straus, Blosser & McDowell, Chicago, 111.
(managing).
United States Shell

Homes, Inc. (12/12-16)
28, 1960 filed $2,500,000 of 8% capital debentures,

Oct.

due Dec.

chase

15, 1975, with warrants attached for the pur¬
50,000 shares of common stock, and 100,000

shares of such stock.

These securities

are

to be offered

—

•
Telephone & Electronics Corp. (12/12-16)
Aug. 18, 1960 (letter of notification) 52,980 shares of
common stock (par 25 cents). Price—$5 per share. Pro¬
ceeds—For general corporate purposes. Business—Elec¬
tronic communications equipment and automatic, loudf-r

speaking telephone. Office—7 East 42nd St., New York
17, N. Y. Underwriter—Equity Securities Co., New York,
N. Y.

(12/12-16)

Tele-Tronics Co.

Aug. 10, 1960 (letter of notification) 100,000 shares of
common stock (par 40 cents). Price—$3 per share. Pro¬
ceeds—For plant expansion, additional machinery, ac¬
quisition of new facilities and working capital. Office—
180 S. Main St., Ambler, Pa. Underwriter—Woodcock,
Moyer, Fricke & French. Inc., Philadelphia, Pa.
t.

Telex, Inc.
Sept. 27, 1960 filed 196,000 shares of common stock, oi
which 125,000 shares are to be offered to holders of the
outstanding common on the basis of one new share for
each five shares held. Price—To be supplied by amend¬

includ¬
ing the retirement of $1,100,000 in outstanding notes. Of¬
fice—Minneapolis, Minn. Underwriter — Lee Higginson
Corp., New York City (managing). Offering—Imminent.
ment. Proceeds—For general corporate purposes,

•

j,
<

Chemical Corp.

Texas Butadiene &

Oct.

6, 1960 filed 635,800 shares of common stock, of
which 296,000 will be offered publicly, 125,467 shares
wilPbe offered for the account of selling stockholders,
and the balance will be issued in exchange for the is¬

Price—To be supplied
by amendment. Proceeds—For working capital and gen¬
eral corporate purposes. Office-—529 Fifth Avenue, New
York City. Underwriters—Blyth & Co., Inc. and Lehman
Brothers. Offering—Postponed.
suer's outstanding preferred stock.

in units consisting of $100 of debentures with attached
warrants for the purchase of two common shares, and
four such shares.

Corp.
shares of common stock. Price
share. Business—Engaged in various phases

—$1.15 per

Proceeds—For acquisition of small busi¬
Office—Meadows Bldg., Dallas, Tex. Underwriter

of electronics.
nesses.

—Naftalin &

Co., Inc., Minneapolis, Minn.

wholly-owned subsidiary of the issuer, who proposes to
outstanding indebtedness, purchase secured in¬
stalment obligations/ purchase 20,000 outstanding shares
of its stock, and add to working capital. Office — 4415
Beach Boulevard, Jacksonville, Fla. Underwriter—Hayden, Stone & Co., New York City (managing).
retire

Therm-Air

Mfg.

Co.,

Oct.

28, 1960 (letter of notification) 75,000 shares of com¬
stock (par 10 cents).
Price — $4 per share. Busi¬
manufacture, sale and installation of equip¬
ment used by schools and colleges in the instruction of
modern foreign languages (language laboratories). Pro¬
ceeds
For general corporate purposes. Address — 510
Hudson St., Hacskensack, N. J. Underwriter—Underhill
Securities Corp., 19 Rector Street, New York, N. Y.
mon

ness—The

military and commercial use. Proceeds—To pay
loans, for research and development, and for working
capital. Office—1000 North Division St., Peekskill, N. Y.
Underwriter—G. Everett Parks & Co.. Inc., New York
City. Offering—Expected in mid-December.
■

•

Urban

■

4, 1960 filed 60,000 shares of class A common stock

price—To be supplied by amendment. Address—Omaha,
Neb. Underwriters—J. Cliff Rahel & Co., Omaha, Neb.
and First Trust Co. of

Lincoln, Lincoln, Neb. Offering—
Expected in December.
Underwater

Storage,

Development Corp.

Aug. 30, 1960 filed 300,000 shares of common stock (no
par). Price—$10 per share. Proceeds—For general cor¬
porate purposes, including debt reduction. Office—Mem¬
phis, Tenn. Underwriter—Union Securities Investment
Co., Memphis, Tenn.
•

Vacudyne Associates,

Sept. 30,
common

Inc.

Nov.

8, 1960 (letter of notification) 100,000 shares of
stock (par $1). Price—$3 per share. Proceeds—
working capital.
Office—1028 Connecticut Ave.,
N. W., Washington, D. C. Underwriter—Searight, Ahalt
For

O'Connor, Inc., New York, N. Y. Offering—Expected
early January.
Unifloat

Oct.

Marine

Structures

Corp.

17, 1960

(letter of notification) 100,000 shares of
common stock (par one cent). Price—$3 per share. Pro¬
ceeds—To purchase raw materials, maintenance of in¬
ventory, machinery and equipment, and for working
capital. Office—204 E. Washington St., Petaluma, Calif.
Underwriter—To be supplied by amendment.

—Kenneth Kass; H. S.
Rubin & Co., Inc., New
Valdale

common

ceeds

stock

—

• United Gas Corp.

Nov. 29,
par

1960 filed

v-None.

;v-.

maximum of 161,573 shares of $10
Price—To be supplied by amend¬

stock.
Proceeds — To

common

ment.

Bond & Share

i»

United

Co.

the

selling stockholder, Electric
Office—Shreveport, La. Underwriter
i

Industries Co.,

Inc.

and community development, and' manufac¬

property

turing. Proceeds—For property -: improvements. Office—
South 23rd Ave., Phoenix, Ariz. Underwriter—Leh¬
man Brothers,
New York City (managing)
Western Factors*

Inc.

29, 1960, filed 700,000 shares of common stock. Price
—$1,50. per share. Proceeds—To be used principally for
the purchase of additional accounts receivable and also
may be used to liquidate current and long-term liabil¬
ities.
Office —1201 Continental Bank Bldg., Salt Lake
June

City, Utah.
Business—Factoring. Underwriter—Elmer
K. Aagaard, Newhouse Bldg., Salt Lake City, Utah. •

(12/2)

Western Utilities Corp.

27, 1960 filed $2,750,000 of 5Y4% convertible deben¬
tures, due Oct. 1, 1975. Price—To be supplied by amend¬
Oct.

substantial amounts
public utilities. Pro¬
ceeds—To reduce indebtedness, for working capital, and
for the purchase of additional securities in operating
utilities. Office
300 Montgomery St., San Francisco,
Calif. Underwriter—Dean Witter & Co., San Francisco,
Calif, (managing).
ment. Business—The company owns

common

stock in three operating

—

•

Westminster

(12/15)

Fund, Inc.

Oct.

14, 1960 filed 4,000,000 shares of capital stock. Busi¬
ness—This is a new mutual fund, and its intention is to
offer holders of at least $25,000 worth of acceptable
securities the opportunity of exchanging each $12.50
worth of such securities for one share in the Fund, which
will receive a maximum commission of 4%. OfficeWestminster at Parker, Elizabeth, N. J. Investment Ad¬
visor—Investors Management Co. Dealer - Manager—
Kidder, Peabody & Co., New York City.
•

Wilier Color Television

(12/12-16)

System, Inc.

(letter of notification) 80,890 shares of common
stock
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y. Underwriter—Equity Securities Co., 39
Broadway, New York City.
Williamsburg Greetings Corp.

26, 1960 filed 180,000 shares of common stock
(par 25 cents).
Price — $6 per share.
Business—The
and its subsidiaries are engaged chiefly in the
design, production, and sale of greeting cards. Proceeds
—About $400,000 will be applied to the reduction oi
factoring advances, with the balance to be added to
working capital. Office—3280 Broadway, New York City.
Underwriters
Standard Securities Corp., New York
City, and Bruno-Lenchner, Inc., Pittsburgh, Pa., and
Amos Treat & Co., Inc., New York City. Offering—De¬
layed.

Aug.

(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬

To pay accounts payable, reduce a bank loan,

—

Winn-Dixie

Pa.

Underwriters—B.

Rubin

Co. I and H.

Sim¬

& Co. both of New York City.

(letter of notification)

150,000 shares of
common stock (par 10 cents). Price—$2 per share. Busi¬
ness—Manufacturers of components, subassemblies, as¬
semblies and special devices in the missile and com¬
puter fields. Proceeds—For general corporate purposes.
Address—High Falls, N. Y. Underwriter—Droulia & Co.,
14, 1960

New York, N. Y.

Vector Industries,

Aug. 29,

Inc.

(12/5-9)

1960

(letter of notification) 150,000 shares of
common stock (par 10 cents). Price—$2 per share. Pro¬
ceeds—To pay in full the remainder of such subscription
to capital stock of International Data Systems, Inc. and
to retire outstanding notes. Office—2321 Forest Lane,
Garland, Tex. Underwriter—Plymouth Securities Corp.,
New York City.
•

Victor

Paint Co.

company

18, 1960 filed 130,000 shares of common stock of
which 95,000 shares are to be offered for the account ot
the issuing company and 35,000 shares, representing out¬
standing stock, for the account of the present holders
thereof. Price—To be supplied by amendment. Proceeds
—For general corporate purposes, including the opening
of additional stores in the metropolitan Detroit area
Office
Detroit, Mich. Underwriter — Charles Plohn &
Co., New York City (managing).
t
—

Laboratories, Co., Inc.

of notification) 90,000 shares of
(par $1). Price—$2.75 per share.
Proceeds—To provide funds for further expansion of the
company's operations. Office—5455 Randolph Rd., Rockville, Md. Underwriter—First Investment Planning Co.,
Washington, D. C.
Oct.

•

1960

26,

(letter

common

Webb

stock

(Del E.)

Corp.

operates

510 retail food

Diversified Locations, Inc., the
—5050 Edgewood Court,

—Merrill

(12/2-8).

$8,000,000 of convertible subordi¬
nated debentures, due October 1975, 640,000 shares of
common stock, and warrants for the purchase of'320,000
1960 filed

shares of such stock. These securities will be offered in

stores.

Proceeds—To

selling stockholder. Office

Jacksonville, Fla. Underwriter
Lynch, Pierce, Fenner & Smith Inc. (manag¬

ing).

.
^

•

Wisconsin Southern Gas

Co., Inc.

Oct. 26, 1960 filed 27,996 shares of
one

new

common

outstanding

stock, to be
the

common on

share for each five shares held. Price

—To be supplied by amendment. Proceeds'
bank indebtedness. Office—-Lake

—

To reduce

Geneva, Wis. Under¬
Wis., and Har-

writers—The Milwaukee Co., Milwaukee,

ley, Haydon & Co., Inc., and Bell & Farrell, Inc., both
of Madison, Wis.
Offering—Expected in December.

WonderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain
property, for constructing a motel on said property and
various leasehold
—7805

Sunset

improvements on the property. Office
Boulevard, Los Angeles, Calif. Under¬
Securities Corp., same address.

writer—Standard
Yuscaran

Mining Co.

May 6 filed 1,000,000 shares of common stock. Price— $1
per share. Proceeds—It is expected that some $100,000
will be used to purchase and install

(12/7-8)

Oct.

Vim

(12/12)

22, 1960 filed 406,000 shares of outstanding com¬
mon stock, of which 350,000 shares are for public offer¬
ing, and 56,000 shares are to be offered to key employees.
Price—To be supplied by amendment. Busines:—The

offered to the holders of the

Varifab, Inc.
Nov.

Stores, Inc.

Nov.

advertising and for working capital. Office—Red Lion,

Sept. 21,

Sept. 27, 1960 filed $500,000 of 6% convertible serial
subordinated debentures. Price—At
par. Business—The

Simmons & Co., Inc. and B. N.
York, N. Y.

(12/15)

Co., Inc.

July 27, 1960

class A

»■

(12/6)

tronic tubes. Proceeds—For general corporate purposes.
Office—397 Seventh Ave., Brooklyn, N. Y. Underwriters

common

Inc.

(letter of notification) 200,000 shares of
stock (par 10 cents). Price—$1 per share. Busi¬
1960

ness—Distributors of radio and TV receiving tubes and
owner of Transletesonic Inc. which manufactures elec¬

•

Tip Top Products Co.

Oct,

shares; Price—To be supplied
— Real
estate/construction,

basis of

ment for

t '

purchase of two common
by amendment., Business

company

Inc.

Sept. 13,11960 filed 125,000 shares of common stock (par
10 cents). Price—$4 per share. Business—The company
makes and sells temperature and humidity control equip¬

of. $50 principal amount of

Shares,; and warrants for the

—

units, each unit to consist
debentures, four common

Jan. 29

Universal Electronics Laboratories Corp.

mons

•

Price—To be supplied by amendment.

Business—The sale, construction, and financing of "shell"
homes. Proceeds—For use by Dixie Acceptance Corp., a

Texas Research & Electronic

Oct. 3, 1960 filed 600,000

Thursday, \Dgcemberl, 1960

302

common stock

open-end mutual fund.

new

& Co., and Francis I.

Telecolor

International

20, 1960 filed 1,000,000 shares of
Bermuda pound). Price—$12.50

one

TelAutograph Corp.

—

...

essing of

mill for the proc¬

$60,000 for rails, ties, rail cars and related
equipment; $10,000 for rebuilding roads; $30,000 for
transportation equipment; and $655,000 for working cap¬
ital. Office—6815 Tordera St., Coral
Gables, Fla. Under¬
writer—-None. Note—The SEC has
challenged the accuore;

a„de<luacy of this statement. A hearing was
for Aug. 29 at the
request of the company
counsel and the results have not as
yet been announced.
scheduled

•

Zurn

Industries, Inc.

Sept. 26, 1960 filed 200,000 shares of common stock ($1
par), of which 100,000 shares are to be offered for the
account of the issuing
company and
100,000 shares,
representing outstanding stock/ are .to-be offered for the;
-

account of the present holders thereof.
Price—To be sup¬

plied by amendment. Business
mechanical power transmission

—

The

manufacture

equipment, fluid control,
devices, building plumbingJ drainage products and researcp and development of a. synchro-rgear assembly for
atomic submarines.
Proceeds—-For new equipment, the
repayment

of-loans, and working capital. Office—-Erie,
Underwriter—Lee Higginson
Corp/ New York City
(managing). Offering—Postponed.

Pa.

Volume 192

Number 6008

The Commercial and Financial Chronicle

(2213)

firm is

ATTENTION

UNDERWRITERS!

Do you have an issue

Our

that

can

prepare an

write

telephone

you

REctor

Trunk

Line

Co., Ltd.

1, 1960 A. G. Bailey, President, announced that
financing of approximately $65,000,000 mostly in the

bonds, is expected early in 1961.
Office—502-2nd St., S. W., Calgary, Alberta, Canada.

Nov. 3, 1960, Donald L. Barnes,

Jr., executive vice-presi¬
dent, announced that debt financing is expected in early
1961 in the form of about $6,000,000 of capital notes and
$4,000,000 to $6,000,000 of _lVjordinated notes. Office—
St. Louis, Mo.
Finance

Inc.

O. Sebastian, Vice-

President-Treasurer, that the company is considering a
rights offering to stockholders of additional common
stock via a Regulation "A" filing, possibly to occur in
mid-1961.
Office—39 E. Chestnut St., Columbus, Ohio
Underwriter—Vercoe & Co., Columbus, Ohio.
Arkansas Power & Light Co.
Sept. 20, 1960 it was announced that this subsidiary of
Middle South Utilities, Inc. might issue $15,000,000 of
first mortgage bonds sometime in the first quarter of
Underwriter

bidding.

—

determined

by competitive

bidders: Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co. and Equitable
(jointly); Blyth & Co. and Dean Witter
& Co. (jointly); Lehman Brothers, Stone & Webster Se¬
curities Corp. and White, Weld & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Smith Inc.
Probable

Eastman

Securities Corp.

Atlantic Transistor

Corp.
Sept. 12, 1960 the company reported that it is contem¬
plating filing its first public offering, consisting of a
letter of notification covering an undetermined number
of shares of its $1 par common stock.
Business — The
company
makes
and
sells
a
"water - tight,
un¬
breakable" marine radio known

band.

Office—63-65

the "Marlin 200." Pro¬

Mt.

Pleasant

Ave., Newark,
N. J. Underwriter—Mr. Roth, Comptroller, states that he
is actively seeking an underwriter to handle the offer¬
ing. Note—The issuing company is a wholly-owned sub¬
sidiary of Auto-Temp Inc.
Automation

Inc.

derwriter—Ross, Riemer, Collins & Co., Inc., 44 Beaver
St., New York City.
Labs

Inc.

Sept. 14, 1960 it was reported that a "Reg A" filing is
expected. Business — Electronics.
Office — Westbury,
L. I., N. Y. Underwriter — Sandkuhl and Company,

Newark, N. J., and New York City.
Baltimore Gas & Electric Co.
Oct. 3, 1960 it was reported that the utility expects to sell
about $20,000,000 of additional securities, possibly bonds

preferred

stock, sometime during the first half of
1961. Office—Lexington Building, Baltimore, Md.
Un¬
derwriter
To be determined by competitive bidding.
or

—

Probable bidders:

Halsey, Stuart & Co. Inc.; White, Weld
& Co. and First Boston Corp. (jointly); Harriman Rip¬
ley & Co., Inc. and Alex. Brown & Sons (jointly).
•

Bo-Craft

Enterprises Inc.
18, 1960 it was reported that a letter of notifica¬
consisting of 100,000 shares of 10 cent par common
stock will be filed for this company. Price—$3 per share.
Business—The company is engaged in the manufacture
of parts for zippers. Proceeds—For expansion and gen¬
eral corporate purposes. Office—11-54 44th Drive, Long
Island City, N. Y. Underwriter—Harwyn Securities, 1457
Broadway, New York City.

Beverly Hills,

Oct.
to

Oregon Power Co.

18, 1960 it

come

the

$12,000,000

approximately $7,000,000 of bonds and
$5,000,000 common stock. Proceeds—For the repayment
of bank loans.
•

Office—216 W. Main

St., Medford, Oreg.

Carbonic

Equipment Corp.
5, 1960 it was reported that a full filing of about
$300,000 of units, consisting of common stock, bonds and
Oct.

Office—97-02 Jamaica Ave.,
Woodhaven, N. Y. Underwriter—R. F. Dowd & Co., Inc.
•

Casavan

Industries

Sept. 21, 1960 it was reported by Mr. Casavena, Presi¬
dent, that registration is expected of approximately
$11,750,000 of common stock and $10,000,000 of deben¬
tures. Business
The company makes polystyrene and
polyurethane for insulation and processes marble for
construction. Proceeds—For expansion to meet $10,000,000 backlog. Office—250 Vreeland Ave., Paterson, N. J,
—

Underwriter—To be named.

Chicago, Rock Island & Pacific RR. (12/7)
1, 1960 it was reported that bids will be accepted
in New York City on Dec. 7 up to 1:00 p.m. (EST) ,for
$3,450,000 of equipment trust certificates. Underwriter—
To be determined by competitive bidding. Probable bid¬

Nov.

ders:

Halsey, Stuart & Co. Inc., and Salomon Bros. &

Hutzler.
•

Citizens

Southern

Small

Business

Investment

Co.

Oct. 24,
to file
zens

reported that the company expects
of its common stock. Office—c/o Citi¬
Southern National Bank, Marietta at Broad,

1960 it
$3,000,000

22,

the

vertible subordinated debentures to be offered for sub¬

scription by stockholders of record
Proceeds
623
man

—

about Jan.

To reduce short-term borrowings.

Wabash

Brothers

Ave., Chicago, 111.
and

11.

Office—

Underwriters—Leh¬

Goldman, Sachs & Co.

(for unsub¬

scribed for shares).

Business Capital

Corp.

Nov. 18, 1960 George H.
Dovenmuehle, Board Chairman
of Dovenmuehle Inc., Chicago, 111./*' reported that this

new

product.

Office—Westbury, L. I. Underwriter—

Exploit Films Inc.
Oct. 28, 1960 it was reported that the
company will file
letter of notification consisting of
150,000 shares of

common

duction
of

stock
of

and

per

share. Proceeds—For the pro¬

motion

picture films, the reduction
indebtedness, and for working capital. Office—619 W.

54th

St., New York City. Underwriter—McClane & Co.,
26 Broadway, New York City. Registration—Ex¬
pected in December.
Inc.,

First

Real

Estate

Investment

Fund

Nov.

early-to-mid-December, and

January,

1961

filing

will be made with the SEC which will
permit inter-state

offering. Business—This is
will

become

open-end

Stock,

and

will

estate

and

mutual

subsequent

short-term

invest

fund

new

sale

the

which

this

primarily

in commercial real
government bills. Office—7 E.

42nd

St., New York City. Sponsor
Corp., New York City.

—

Fass Management

Florida Power & Light Co.
Oct.

24,

1960

reported

was

that

undetermined

amount of bonds may be offered in the
Office—25 S. E. 2nd

Spring of 1961.
Ave., Miami, Fla. Underwriter—

To be determined by competitive
ders:
Merrill Lynch,

bidding. Probable bid¬

Pierce, Fenner & Smith Inc. and
Kidder, Peabody & Co. (jointly); Halsey, Stuart & Co.
Inc.; White, Weld & Co.; First Boston Corp.; Blyth &
Co., Inc.
Ford Motor Credit Co.
Oct.

17, 1960 it was repqrted that this company is devel¬
oping plans for borrowing operations, which may in¬
clude
the
issuance of debt, securities,
and possibly
occur

Coca-Cola Co.

in the first quarter of 1961.

General

stock, each share of which will be exchanged for 2.2
Office—Atlanta, Ga. Note—Minute

Office—Detroit, Mich.

Southern Blvd., Bronx, N. Y.

Minute Maid shares.

21.

Colorado

Interstate Gas Co.

Oct.

17, 1960 it was reported by Mr. A. N. Porter of the
company's treasury department that the company is
awaiting a hearing before the full FPC with reference
to approval of its application for expansion of its sys¬
tem, which will require about $70,000,000 of debt fi¬
nancing. Such approval is expected in December of this
year, and the public financing is expected in the latter
part of 1961. Proceeds—For expansion. Office—P. O, Box
1087, Colorado Springs, Colo.
Columbus & Southern Ohio Electric Co.

Sept. 22, 1960 it was reported the company will sell about
$10,000,000 additional common stock sometime in 1961.
Proceeds—For expansion purposes. Office—215 N. Front

St., Columbus 15, Ohio. Underwriter—Dillon, Read & Co

^ Dakota Reinsurance Corp.
Nov. 28, 1960 it was reported by Walter H. Johnson,
President, that the company plans its first public offer¬
ing of an as yet undetermined amount of its $1 par
common
stock.
Business—The company will enter the
field of reinsurance on a multiple line basis.
Office —
P.

Box

669, Yankton

South Dakota. Underwriteris actively seeking

underwriter.
Dallas

Power &

Light Co.

Sept. 14, 1960 it was stated by the company's president
that there may possibly be some new financing during

1961, with no indication as to type and amount. Office—
1506 Commerce Street, Dallas, Texas. Underwriter—To
by competitive bidding. Probable bidders:

Resistance, Inc.

Sept. 19, 1960 it

was reported that the company will file
letter of notification, comprising its first
public offer¬
ing, in late December or early January. Office — 430

•
Georgia Bonded Fibers, Inc.
Sept. 14, 1960 it was reported that registratien of 150,000
shares of common stock is expected. Offices—Newark,
N. J., and Buena Vista, Va. Underwriter—Sandkuhl and

Company, Newark, N. J., and New York City.
Goshen Farms Inc.
Oct.

5, 1960 it was reported that 100,000 shares of the
company's common stock will be filed. Proceeds—For
breeding trotting horses. Office—Goshen, N. Y. Under¬
writer—R. F. Dowd & Co. Inc.
•
Hemingway Brothers Interstate Trucking Co.
Sept. 16, 1960 the ICC granted the firm permission to
issue $1,000,000 of 10-year registered 6% subordinated

debentures. Business—The firm is

a common carrier by
operating in nine Eastern states. Proceeds
equipment. Office—
New Bedford, Mass. Underwriter—None. Offering—Ex¬
pected in early December.

motor vehicle

—For debt reduction and additional

Houston Lighting & Power Co.
Oct. 17, 1960 Mr. T. H. Wharton, President, stated that
between $25-$35 million dollars is expected to be raised

publicly sometime in 1961, probably in the form of pre¬
and debt securities, with the precise timing de¬
pending on market conditions. Proceeds—For construc¬
tion and repayment of bank loans. Office — Electric
Building, Houston, Texas. Underwriter — Previous fi¬
nancing was headed by Lehman Brothers, Eastman Dil¬
lon, Union Securities & Co. and Salomon Bros. &
ferred

Hutzler.

Indianapolis Power & Light Co.
According to a prospectus filed with the SEC on Aug.
25, the company plans the sale of about $14,000,000 of
additional

securities

1963.

Office

—

Monument

Circle, Indianapolis, Ind.
Diversified Automated

Sales Corp.

16, 1960 it was reported by Frazier N. James,
President, that a "substantial" issue of common stock,
constituting the firm's first public offering, is under
discussion. Business — The company makes a film and
Nov.

machine called DASCO, which will
sell as many as 18 products of various sizes and prices,
and will also accept exposed film for processing. Office
—223 8th Ave., South, Nashville, Tenn. UnderwriterNegotiations are in progress with several major under¬
flashbulb

was reported that stockholders have
issuance of $25,000,000 of 20-year con¬

—

a full filing of approxi¬
mately $300,000 of bonds, common stock and warrants is
expected. Proceeds—For expansion and the manufacture

Sept. 22, 1960 it was announced that under the terms of
the proposed
acquisition of Minute Maid Corp. this
company would issue about 906,400 shares of its common

To be named.

1960 it

authorized

working capital. Office

Dynamic Instrument Corp.
Oct. 5, 1960 it was reported that

was

Atlanta, Ga.

be determined

Nov.

products, purchase new equipment,
Norcross, Ga. Under¬

and for

writer—To be named.

10, 1960 it was reported that a stock offering of
$10,000,000 will be made to New York State residents in

Corp.

Inc.

expansion of the business.

Mr. Johnson states that the company

Brunswick

Dynamic Center Engineering Co.,

Oct. 3, 1960 it was reported that the
company plans a
full filing of its $1 par common stock. Proceeds—To
pro¬
mote the sale of new

R. F. Dowd & Co. Inc.

to market in late 1961 to raise about

form

tion

Brooklyn Union Gas Co.

•

reported that the company expects

was

Nov.

Sept. 21, 1960 G. C. Griswold, Vice-President and Treas¬
urer, announced that there will be no further financing
in 1960 but that $25,000,000 to $30,000,000 of mortgage
bonds or preferred stock are expected in late 1961 or
early 1962. Office—176 Remsen St., Brooklyn 1, N. Y.

ester, N. Y. Underwriter—The company's initial financ¬
ing was handled by Lee Higginson Corp., New York City.

Dec.

—

Dynacolor Corp.
Aug. 22, 1960 it was reported that new financing will
take place but there is no indication as
yet as to type,
timing and amount. Office—1999 Mt. Read Blvd., Roch¬

Maid shareholders will vote on the proposed merger on

Development,

Sept. 20, 1960 it was reported that a "Reg. A" filing,
comprising this firm's first public offering is expected.
Note
This firm v/as formerly
carried in this col¬
umn
under
the
heading "Automation for Industry
Inc." Proceeds—For further development of the "Skyjector." Office—342 Madison Ave., New York City. Un¬

Automation

not

California

ceeds—For the development of the "Marlin 300," which
is to be a similarly constructed radio with a ship-to-

shore

warrants will be made in late December. Proceeds—For

Nov. 11, 1960 it was reported by Paul

1961.

Office—Chicago, 111.

Calif. Underwriter—R. E. Bernhard & Co.,
Calif.

Investment Co.

Approved

Co.; Chicagp Title & Trust Co.; Con¬
(Chicago); Booz Allen & Hamilton

yet in operation but which has pilot
plants, will mine and mill asbestos. Proceeds—To set up
actual operations. Address—The company is near
Fresno,

form of first mortgage

American

formed

Sept. 28, 1960 it was reported that discussion is under
way concerning an offering of about $300,000 of common
stock. It has not yet been determined whether this will
be a full filing or a "Reg. A." Business—The
company,

Sept.
new

Business

company

California Asbestos Corp.

Prospective Offerings
Gas

Assurance

Armour Research Institute.

which

Alberta

investment

In addition
Dovenmuehle, directors will be drawn from Com¬

tinental
and

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

business

1960, and it plans to develop real estate.

to Mr.

item

2-9570

small

monwealth Edison

similar to those you'll find hereunder.
Would

you're planning to register?

Corporation News Department would

to know about it

contemplating "a large public offering."

—This

vending

Industrial

writer—R. F. Dowd & Co. Inc.

International

Safflower

Sept. 12, 1960 it was reported that registration is
expected of $600,000 of common stock. /Proceeds — For

Office — Covington, Ga.
Underwriter—Plymouth Securities Corp., 92 Liberty St.,
New York 6, N. Y.
general corporate

purposes.

Corp.

Oct.

28, 1960 it was reported that the company plans to
file a letter of notification consisting of 60,000 shares of
common

(par $2). Price — $5 per share.
outstanding loans, purchase of plant-,

stock

Proceeds—To retire

Dodge Wire Manufacturing Corp.

Instrument Co.

business, and for the manufacture of a new product by a
subsidiary. Office—1947 Broadway, Bronx, N. Y. Under¬

class A

writers.

Gauge &

Oct. 5, 1960 it was reported that 100,000 shares of com¬
mon stock will be filed. Proceeds — Expansion of the

ing seed, lease or purchase land, building and machinery
and for working capital. Office — 350 Equitable Bldg.,

Denver, Colo. Underwriter
Springs Colo.

—

Copley & Co., Colorado

Continued

page

The Commercial and Financial Chroniclev..

(2214)

For

Iowa-Illinois Gas & Electric Co.
Oct. 24, 1960 it was reported by the company treasurer,
Mr. Donald Shaw that the utility expects to come to

market, perhaps in mid-1961, to sell long-term securities
in the form of bonds and possibly preferred stock, with
the amount and timing to depend on market conditions.
The 1961 construction program is estimated at $17 mil¬
lion of which $10-$11 million will

have to be raised ex¬
Office—206 E. 2nd St., Davenport, Iowa.

ternally.

Japan Telephone & Telegraph Corp.
Oct. 27, 1960 it was announced that this governmentowned business plans a $20,000,000 bond issue in the
United States. Proceeds—For expansion. Underwriters
—Dillon, Head & Co., First Boston Corp., and Kidder,

Peabody & Co. Offering—Expected in the Spring of 1961.
Steel

Kawasaki

Co., Ltd.

Oct. 17, 1960 it was reported that the
is considering a $4,000,000 bond issue
Underwriter—First Boston

Japanese company
for U. S. offering.
Corp., New York City.

Laclede Gas Co.

but the current feel¬
ing is that it will not be necessary to turn to long-term
securities until May 1962. Office — 1017 Olive St., St.
Louis, Mo.
■ y-'V
'
\
' ■
construction

1961-65

program,

Lone Star Gas Co.

Aug. 3, 1960, it was reported that about $37,000,000 will
be raised to cover capital requirements over the next

Office—301 So. Harwood Street, Dallas 1, Texas.

year.

Long Island Lighting Co.
reported by Fred C. Eggerstedt, Jr.,
Vice-President, that the utility contemplates
the issuance of $25,000,000 to $30,000,000 of first mort¬
gage bonds in the second or third quarter of 1961. Office
—250 Old Country Road, Mineola, N. Y.

Nov. 11, 1960 it was
Assistant

•

Louisville & Nashville R.R.

bidders: Halsey,
Inc. and Salomon Bros. & Hutzler*
Macrose

Nov.

Probable

Lumber & Trim Co.,

Stuart

Co.

2060 Jericho

reported that the sale of the $10 mil¬
bonds is tentatively ex¬
pected in April, 1961. Office — 10 North Broadway,
Nyack, N. Y. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: First Boston Corp.;,
Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;
W. C. Langley & Co. and Glore, Forgan & Co. (jointly).

Turnpike, New Hyde Park, L. I., N. Y.

was

(1/24)

Otter Tail Power Co.

1960, Albert V. Hartl, executive Vice-President
of this utility told this newspaper that an issue of be¬
tween $6,000,000 to $8,000,000 of 30-year first mortgage y
bonds is expected. Office—Fergus Falls, Minn. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.;'
Glore, Forgan & Co.; White, Weld & Co.
Gas Transmission

Pacific

Co.

1960 it was reported by Mr. K. C.. Cristensen,
company Vice-President and Treasurer, that this subsid¬
iary of Pacific Gas & Electric Co. plans a rights offering'
to stockholders later this year of $13,300,000 of convert¬
ible debentures and also plans the sale of $90,000,000 of
first mortgage bonds, the timing of which is as yet un- *
decided. Office—245 Market Street, San Francisco, Calif..
Underwriter—Blyth & Co., Inc., New York City (man- :
2,

aginS)-

■

Corp.
Nov. 10, 1960 it was reported by Robert W. Miller, chair- ~
man, that the company will probably go to the market
for $30,000,000 to $50,000,000 of new financing in 1961,
but that if equity financing is used the amounts won't
be high enough to dilute earnings of the common to
below the $3.20 per share level. Office—600 California
St., San Francisco 8, Calif.

18, 1960 it* was reported that the company plans a

"Reg. A" filing of 75,000 shares of common stock, con¬

its first

public

offering. Business—The com¬

is in the process of organizing and will manufac¬
Proceeds—For expansion and

pany

announced that registration is ex¬

(man¬

Industries

Power Chem
Oct.

ture additives for fuel oils.

pected of the company's first public offering, which is
expected to consist of about $650,000 of convertible de¬

general corporate purposes. Office

bentures and about $100,000 of common stock. Proceeds
—For expansion, including a new warehouse and addi¬

Inc., 645 Forrest Ave., Staten Island, N. Y. Registration
—Expected in January.

tional stores. Office—153-22 Jamaica Ave., Jamaica, L. I.,
N. Y. Underwriter — Hill, Thompson & Co., Inc., New
York Citv

N. Y.

Staten

Southern

Island, N. Y. Underwriter

645 Forrest Ave.,

—

Ronwin Securities

—

Nov.

21,

Proceeds

April 8 it

also

Enterprises

Inc.

the company's annual report
contemplates the issuance on or before March 31,
a bond issue in an aggregate amount not to exceed
$4,000,000. Proceeds — To finance river transportation
equipment presently on order and expected to be
ordered. Office—Cincinnati, Ohio.
stated in

was

1961 of

^ Mississippi

Business &

Industrial

Development

Corp.
Nov. 28, 1960 it was reported that the company will issue
$1,000,000 of $10 par common stock, of which $500,000
will be subscribed for by utility companies
will be sold to business and industry and

public.
other

sion

and $500,000

(12/13)

filed 250,000 shares of cumulative preferred
Jersey Public Utility Commission.
shortly. Price—To be supplied by
amendment. Proceeds—For construction. Office—New¬

stockholders approved the
bonds. The issuance of

new

approved. Proceeds

Business—To assist via loans, investments, and

business

transactions, in the location and expan¬
in Mississippi.

of businesses

Nedick's Stores, Inc.
Nov.

15,

1960

reported

was

that

filing

Public

Nov. 10, 1960 it was reported that the number of author¬
ized common shares had been increased from 3,266,819
to

5,000,000, and that some of the added shares might be
issued in 1961. Office—860 Stuart Bldg., Seattle 1, Wash.
Underwriter
Previous financing has been handled by
Blyth & Co.
—

Ram
Nov.

Service, Inc.

expected

Richards Aircraft

Supply Co., Inc.

Oct. 10,

1960 it was reported that a "Reg. A" filing of
the company's common stock is expected. Proceeds—For
expansion and working capital. Office—Ft. Lauderdale,
Fla.

Underwriter—Blaha & Co., Inc., Long

Island City,

N. Y.

Baronne

St., New Orleans, La. Underwriter—To
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lee Higginson Corp., Equi¬
table Securities Corp. and Eastman Dillon, Union Securi¬
ties & Co. (jointly); Kidder, Peabody & Co. and Stone
& Webster Securities Corp. (jointly); White, Weld & Co.;
be determined by

Salomon Brothers & Hutzler.
Northern Fibre Glass Co.

Rochester Gas & Electric Corp.

bid

the bonds.

derwriter—Irving J. Rice & Co., St. Paul, Minn.

be made. Underwriters

(Jos.)

Schlitz & Co.
was

reported that
—

Nov.

9, 1960 C. J. Gauthier, Vice-President-finance re¬
ported that of the $95,000,000 in outside financing that
will be required in the next four years to complete a
$200,000,000 construction program, an unspecified
amount might be raised through a common stock issue

Smith Inc. and Harriman Ripley
New York City.

Texas.

Underwriter—Dillon, Read & Co., Inc.

Storer

Broadcasting Co.

Pierce, Fenne*r
& Co. Inc., both of

Carolina

Electric

Gas

Martin

Associates,

•

Trans World

Oct. 10,

series of preferred stock in March 1961.
Underwriter—To be determined by competitive bidding.

pany

stock.

sale of

new

mutual fund.

Proceeds—

680

Fifth

Avenue,

•<

Airlines, Inc.

1960 it was announced that financing needs have
to $318,000,000 from the original fig¬

been scaled down

$340,000,000 with $168,000,000 to be loaned to
TWA by banks, insurance companies and other lenders,
$50,000,000 to be drawn from internal sources, and $100,000,000 from the proposed sale of subordinated income
debentures with stock purchase warrants to TWA stock¬
holders. Proceeds—To give TWA direct ownership of a
ures

jet transport fleet. Office—10 Richards Road, Kansas City
5,

Mo.

Underwriters — Lazard Freres & Co., Lehman
Dillon, Read & Co., Inc. (managing). Note
23 it was reported that Howard Hughes, who now
controlling interest in the company, has not been

Brothers and
—Nov.
owns

able to raise the funds for TWA purchase of the

planes

terms that would leave him in control of the airline.
was

reported that negotiations

to arrange interim
Trunkline

are

in progress

credit.
Co.

Gas

Sept. 28, 1960 it was reported that approximately $15,000,000 of bonds and $5,000,000 of preferred stock are
expected to be offered in the second quarter of 1961.
Office—120

Broadway, New York City. Underwriters-rLynch, Pierce, Fenner & Smith Inc., and Kid¬
der, Peabody & Co., both of New York City (managing).
•

Van

Dusen

Aircraft

Supplies,

Inc.

Nov. 1, 1960 it was reported that registration is expected
in

early December of a letter of notification covering
100,000 shares of this firm's $1 par common stock. Pro¬
For expansion.
Office — Minneapolis, Minn.
Underwriter—Stroud & Co., Philadelphia, Pa.

ceeds

—

Virginia Electric & Power Co.
Sept. 8, 1960 it

was

(6/13)

reported that the

company

will need

$30,000,000 to $35,000,000 from outside sources in 1961.
The financing will probably take the form of bonds and
timing will repend upon market conditions. Office—
Richmond 9, Va. Underwriter—To be determined
by
competitive

bidding. Probable bidders: Halsey, Stuart
Co., Inc.; Stone & Webster Securities Corp.; Eastman
Dillon, Union Securities 8c Co.; Salomon Bros. & Hutzler;
Goldman, Sachs & Co. Bids — Expected on or about
&

,/•

;

Waldorf Auto

Leasing Inc.

Nov.

23, 1960 Mr. Tortorella, company secretary stated
"Reg A" filing is expected. Office—2015 Coney
Island Avenue, Brooklyn, N. Y. Underwriter — To be

that

named.
•

Whippany Paper Board Co.

July 19, 1960, it was reported that this New Jersey com¬
pany plans to register an issue of common stock. Under¬
writer—Van Alstyne, Noel & Co., New York City. Regis¬
tration—Expected in December.
Winona

Wood

Aug. 24, 1960, it
A

Products

Co.

reported that a full filing of class
stock is contemplated. Business—The com¬

common

was

makes wood cabinets for household and industrial

Office—Winona, N. J.

a new

Winter

Underwriter—Metropolitan
Inc., Philadelphia, Pa.
Park Telephone

Oct. 28, 1960 it was reported by Mr. Loren

and may

Fitch,

com¬

comptroller, that the utility is contemplating the
$35,000,000 of 20-year first mortgage bonds some¬

Co.

announced that this company, during the
first quarter of 1961, will issue and sell approximately
30,000 additional shares of its common stock. This stock
was

will be offered

Inc.,

New York City. >

use.

Co.

Nov. 14,

it was reported that registration Is ex¬
pected sometime in December of 300,000 shares of com.

Business—This is

pany

South

Southern Natural Gas Co.

1960

a letter of notifica¬
tion, representing this firm's first public offering, will
be filed shortly covering 60,000 shares of common stock.
Business—The firm, makes a prompting machine for tele¬
vision and an electronic tape editor. Proceeds—To ex¬
pand plant and sales force, enter closed circuit television,
repay a $20,000 loan, and for working capital. Office—
155 West 72nd Street, New York City.
Underwriter—

Address—-P. O. Box 390, Columbia, S. C.

Aug. 29,

1960 it was reported that

14,

York, N. Y. (managing).
Inc.

*..

was

Teiescript C.S.P., Inc./
Nov.

May 10 it

Fund,

reported that a secondary offering
is being planned. Office—Miami Beach, Fla. Underwriter
—Reynolds & Co., New York City.
v iVt'Vv, ^ '
:
Sept. 28, 1960 it

amount of

Lane

offering is planned, with the new shares priced about
6V2% below the then existing market price of the com¬
mon.
Office—720 Mercantile Dallas Building, Dallas 1,

in 1961. Office—50 Fox St., Aurora, 111. Underwriters—
The First Boston Corp. and
Glore, Forgan & Co., New

Maiden

expects to offer about $15,000,000 in bonds and
preferred stock, and that about one
year thereafter & one-for-twenty common stock rights

Securities

One

about $3,000,000 in

1960 C. M. Over, Treasurer, reported that this
utility is tentatively planning to issue $8,000,000 of first
and refunding mortgage bonds and $5,000,000 principal

•

pur¬

company

secondary offering might

Merrill Lynch,

For general corporate

—

Aug. 9, 1960, it was reported that in February, 1961, the

June 13.

March 15.

March 11 it

issuance of
unspeci¬

Public Service Co.

Southwestern

(3/15)

Aug. 1, 1960 it was reported that $15,000,000 of debt
financing is expected. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co., White, Weld & Co.
and Shields & Co. (jointly); Kuhn, Loeb & Co.; Salomon
Bros. & Hutzler, Eastman Dillon, Union Securities & Co.,
and Equitable Securities Corp. (jointly); Blyth & Co.,
Inc.; The First Boston Corp. Bids—Tentatively expected

Sept. 28, 1960 it was reported that this company is plan¬
ning to issue 100,000 shares of $1 par common stock un¬
der a letter of notification. Office—St. Paul, Minn. Un¬

Northern Illinois Gas Co.

December letter of
this firm's first

comprising

offering. Office—Paramus, N. J. Underwriter—
Plymouth Securities Corp., New York City.
public

Nov. 10, 1960 it was reported that an issue of $15,000,000
of first mortgage bonds is expected in May, 1961. Office
—317

notification

loans.

Merrill

Puget Sound Power & Light Co.

ap¬

17,000 shares of common stock is under
discussion, but registration is not imminent. Office—513
W. 166th Street, New York City. Underwriter—Van Alstyne, Noel & Co., New York City.

proximately

New Orleans

ark, N. J. Underwriter—Merrill Lynch, Pierce, Fenner &
Smith Inc., New York City (managing).
Information
Meeting—Scheduled for Dec. 8 at 11:00 a.m.

Electronics, Inc.
4, 1960 it was reported that

bank

including the possible acquisition of Central of
Georgia Ry. Office—Washington, D. C. Underwriter—
Halsey, Stuart & Co. Inc., will head a group that will

Nov. 28 it

Oct. 24, 1960

the general

depending

retire

poses,

SEC filing is expected

that it

timing
To

Railway Co.

1960

stock with the New

Midland

—

fied amount of additional bonds for other purchases was

Public Service Electric & Gas Co.

precise

the

with

$33,000,000 of

Robert

Sept. 28, 1960 it was reported that $65,000,000 of deben-.
tures are expected to be offered in the second quarter
of 1961. Office—120 Broadway, New York City. Under¬
writers—Merrill Lynch, Pierce, Fenner & Smith Inc., and
Kidder, Peabody & Co., both of New York City
aging )

1961,

conditions.

Blyth & Co. and Kidder, Peabody & Co. (jointly).

Pacific Lighting

stituting
Martin Paints & Wallpapers

Aug. 29, 1960 it

was

30-year first mortgage

Oct. 21,

Inc.

7, 1960, it was reported that a substantial common
offering is contemplated in early 1961. Office—

stock

Panhandle Eastern Pipe Line Co.

that bids will be accepted
by the road on Dec. 13, for $7,755,000 of equipment trust
certificates. Underwriter—To be determined by competi¬
bidding.

18, 1960 it

lion

Office—Watts Building, Birmingham, Ala. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co/ Inc.; First Boston Corp.;

Orange & Rockland Utilities, Inc.
Oct.

(12/13)

Nov. 30, 1960 it was reported

tive

market

investment, mainly in listed convertible debentures
Treasury Bonds. Office—1 Maiden Lane, New
York 38,
N. Y.
Underwriter—G. F. Nicholis Inc., 1
Maiden Lane, New York 38, N. Y.
•

Nov.

Nov. 15, 1960 Mr. L. A. Horton, Treasurer, reported that
the utility will need to raise $33,000,000 externally for

its

time

and U. S.

Continued from page 41

Thursday, December 1, 1960

securities
of

may

a rights basis to existing stockholders
not be underwritten by one or more

brokers. Future plans also include the sale
$2,000,000 of bonds in the second quarter of 1901.
East New England Ave., Winter Park, Fla.

Office—132

Number 6008

Volume 192

The Commercial and Financial Chronicle

(2215)

irh

Form Atlanta Shares

With Shearson, Hammill

ATLANTA,

(Special to The Financial Chronicle)

Middleton has joined the staff

Monica Blvd.

Santa

NSTA

Hammill & Co., 9608

of Shearson,

Curtis.-'

Now

twin

STOCKTON, Calif.—Otto E. Sand¬
is continuing the investment

Bank

Holmes

city

security traders

America

On Oct.

Building,

Branch

liams Co.,

uhder the direction of Maurice A.

Dain &

Security

City

Traders

Allison-Wil¬

Sorum,

Nicolas

Schaps,

fices at 215 West 90th

City,

of¬

from

Kermit b. Sorum

Street, New

(Special to The Financial Chronicle)

LOS

ANGELES,

and

Calif. —Bob L.

Walter E.

Robert

Davidson,

Morefield

DENVER, Colo.—Miller, Smith &
Co., Inc., has been formed with
offices

have

business..

& Co.

Mr. Davidson

William T. Price, American

Na-

gan

Cadi-

DIVIDEND

St.

FRANCISCO,

ELECTRIC

T. Lindner has become

with

Henry F.
St.,

California

ST. LOUIS,

Mo.—Robert W. Tiernan
has joined the staff of Stix
& Co., 509 Olive St., members of

associated

Swift & Co.,
members of

490
the

the Midwest Stock

Pacific Coast Stock Exchange. He

Merrill

Lynch Banch

was

Inc.'

Pierce, Fenner & Smith
Incorporate^ has opened a branch
Lynch,
office

445

Sutter Street

Tiernan

Cruttenden,

was

Exchange.

Mr.

formerly with Yates,

1960 has been declared

quarterly

business

E. JEANNERET,
Secretary and Treasurer

BANK NOTE

South

Salle

St.

208

Co.,

&
>"•

2,1961 to holders of record December 5,1960. The

Now With Westheimer

Jan.

its

Nov, 22,1960
Elmer F. Franz
Vice President

($1.00)

per
and Treasurer

capital stock of

value of $50

per

share,

payable

December

28,

1960,

stockholders

the

9,1960

Declared:

COMPANY

the par

3,1961

Record date:

record

YALE & TOWNE mfg. co.

the

Lock and Hardware

Cash dividends

business

Products since 1868

Materials Handling Equipment since 1875

paid every year since 1899

December 5, 1960.
R. E. SCHNEIDER

stock

Secretary and Treasurer
25

Broadway, New York 4, n. y.

Louis T. Hindenlang

Secretary and Treasurer

November 23, 1960

111.—Erwin B. Arvey

CHICAGO,

Dollar

One

transfer books will remain open.

Chronicle)

-(Special to The Financial

ANACONDA

Payable:

has today declared a dividend
of

affiliated with

Hammill

371/2<?

The Board of Directors of
THE

quarterly dividend of 75£ per share (\lA%) on the
Preferred Stock for the quarter ending December 31,1960
and a dividend of 30^ per share on the Common Stock
have been declared. Both dividends are payable January

the Board.

Quarterly Dividend

November 23, 1960

date.

SPRAGUE,

YALE &, TOWNE

Dec.

In
the

South Bend, Indiana.

.dividend no. 210

Common Dividend No. 209

30,

connection

not carry

Chairman of

mous r^4 pat.om

COMPANY

ROBERT

1960

paid

declared this

dividend

291st

(Special to The Financial.Chronicle)

Shearson,

will

November 25, 1960.

AMERICAN

With Shearson, Hammill

Walker has become

dividend

AnacondA

was

Malcolm

cash

Issued

14,

November

will

common

Drewrys Limited U. s. A. Inc.
T.

Preferred Dividend No. 219

—

common

stock

stockholders of record at the close of

topher & Co.

formerly with Reynolds & Co.

111.

the

this

newly

stock, payable December 12, 1960 to

CHICAGO, 111.—Patrick J. Cava-

<•

plus

December

record

naugh
is
now
connected with
Cruttenden, Podesta & Co., 209
South La Salle St., members of
the New York and Midwest Stock

CHICAGO,

cash.

announced

company's

payable

stockholders

MASS.

has

the

Fractional

with

Chronicle)

Cavanaugh

Both, are

the

ADAMS,

cents

stock.
to

COMPANY

Directors

dividend

quarterly dividend of forty (40)'
cents per share for the fourth quarter of

Heitner & Woods and B. C. Chris¬

Co.,

With Cruttenden, Podesta

Exchanges., Mr.

stock

Wiley.

(Special to The Financial

dividend

DIVIDEND NOTICES

under

Robert

management

the

with

Podesta & Co. and Walston &

Calif.—Merrill

SAN FRANCISCO,

formerly

Board

1960.

Calif.—Edgar

NOTICES

DREWRYS

Joins Stix Staff
(Special to The Financial Chronicle)

SAN

Union

Donald

are

SPRAGUE

(Special to The Financial Chronicle)

has been added to the staff
Kidder, Peabody; & Co., 75

Federal

Officers

NORTH

Farmers

DIVIDEND

tional Bank, St. Paul, Minn.

Henry Swift Adds
*

the

engage in a securities

with H.

was

Co.

The

Kidder, Peabody Adds
(Special to The Financial Chronicle)

Jr.,. Building to

Smith, President; Joseph W. Hicks
and Harold M. Miller, Vice Presi¬
Stone & Co., 5657 Wilshire Blvd.
dents, and Gordon A. Jemm, Sec¬
Mr.
Arnett
and
Mr.
Morefield
retary.
George K. Neujahr has
were formerly with Dean Witter
joined the firm's sales staff. *
Hentz

Mass.—John W.

111th

securities

Officers are
Benjamin
Ogurek, President; Robert C. McFadden, Vice-President; andMinnette Ogurek, Secretary-Treasurer.

Howard D. Clipper &

BOSTON,

business.

the name, of
Co. .>
>

under

Northeast

1140
engage

„

Co., Minneapolis, Minn.

Treasurer:

Clipper is continuing

been added to the staff of Hayden,,

Inc., Minneapolis, Minn.

Clipper & Co.

investment business

Secretary-

Street

Hayden, Stone Adds

Arnett,

Secretary: George N. Meeks, Craig-Hallum,

Howard

Assistant

offices

Miller, Smith & Co. Opens

Minneapolis, Minn.

Vice-President:

Young.

York

Twin

Kermit

President:

MOINES, Iowa—State Bond
& Mortgage Company has opened
a
branch
office
at
3100
Sixth

his

the

DES

Now

business.

association

Association for the ensuing year:

State Bond & Mtg.

securities

Britt,

27, 1960, the following were elected as

officers

proprietorship.

sole

Street, N. E., to

Sandman,

Peachtree

Treasurer.

Proprietorship

man

business

rities Corp. has been formed with

800

Officers are William Hicks, Presi¬
dent; William F. Andrews, Jr.,
Secretary - Treasurer; and Frank

merly with Paine, Webber, Jack¬
son

MIAMI, Fla.—First Miami Secu¬

engage

for¬

was

First Miami Securities

Shares,

has been formed with offices

Inc.

Calif.—Cecil

HILLS,

BEVERLY

Ga.—Atlanta

Co...

now'With Westheimer &
134 South La Salle St.
He

was

formerly with H. Hentz & Co.

Joins Chace,

IfAMPHENbr

Whiteside

(Special to The Financial Chronicle)

•

—

B0RG*

was

A quarterly
cents

Dividend Notice

members of the New York
Boston Stock Exchanges. He
formerly with Keller & Co.

St.,

Broadview
Illinois—At

(Special to The Financial Chronicle)

Calif.—,

FRANCISCO,

Shattuck Jr/ is now
with
White, Weld
&'

Charles
affiliated

Co., 1 Bush St., He was
with Mitchum, Jones &
ton.

paid

dividend of fifty
per share will
December

14,

1960, to stockholders of

(Chicago suburb),
a meeting of the

record. November 30, I960:
CHAMP CARRY

phenol-Borg Electronics Cor¬
poration held today a quar¬
terly, dividend of thirty-five
cents (35^) per share was de¬
clared payable December 30,

With White, Weld

$AN

(50£)

of Am-

President

Board
••

—

Quarterly Cash Dividends

Mass. — Richard
N.
Clark is now with Chace, White¬
side & Winslow, Inc., 24. Federal

BOSTON,

and

398th Dividend

94th Consecutive Year of

1960,

formerly

Directors

Division and Subsidiaries:
Pullman-Standard division

the stockholders of

The M. W.

record at the close of business

Temple-

December 16, 1960.

FRED G. PACE,

Trailmobile Finance

Company

Swindell-Dressier Corporation

November 22, 1960.

With Walston Co.

Kellogg Company

Trailmobile Inc.
-

Transport Leasing Company

(Special to The Financial Chronicle)

DENVER,

Colo.

—

ver

S. National

mmmmmmmwm

225th PREFERRED DIVIDEND

Clarence

Simpson has been added to the
staff of Walston & Co., Inc., Den¬

quarterly dividend of V/z%

share)

Center.

has been declared

upon

($1.50

the Pre¬

ferred Stock of The American Tobacco

Joins Edw. D. Jones

Company, payable in cash

of business December

PUEBLO, Colo.—John A. Larkin,

joined the staff of Edward
Jones
&
Co.,
Bon4 Durant

at the close

Harry L. Hilyard

Alfred Slater

Opens

4435
a

421/2<

Subsidiaries:

per

Monongahela Power Co.

Vice President and Treasurer

November 29, I960

WASHINGTON, D.
C. — Alfred
A. Slater has
opened offices at

Principal

COMMON STOCK

Building.
I

QUARTERLY DIVIDEND on the

9, 1960. Checks will

be mailed.

Jr. has

formerly The West Perm Electric Company

January 3,

1961, to stockholders of record

(Special to The Financial Chronicle)

Allegheny Power System, Inc.

Payable December 29, 1960

The Potomac Edison Co.

Record December 9, 1960

West Penn Power Co.

Declared November 30,1960

Wisconsin Avq^ to engage in

securities,

business.'"

YV V'

•

Financial

The Commercial and

(2216)

Chronicle

" * V

•

►JH*''

i •*

.Thursday, December ly 1960
"

WASHINGTON AND YOU

' *

■-

v «

•

Businessman's

BEHIND-THE-SCENES INTERPRETA TIONS
FROM THE NATION'S CAPITAL

WASHINGTON, D. C. — The
nation's great highway building
program is facing a rough road
ahead. Probably one of the big¬
gest legislative fights of its life
is shaping up.

experts for specialized

secure

situations; brings outside think¬

American

ing into solving problems;

tion

cre¬

Catalogue of publications

tion of the states' forces by pro¬

lications

viding

yardstick

accom¬

the program.

Apparently a big scrap
is
shaping up in the next Con¬
gress. The law-makers in Janu¬
ary
are
going to get the all
important lengthy study of the
cost estimate of completing the

have

remainder

ered in 1961.

However, not all is black for

The storm clouds
gathering
for
a
couple of years. They • began
getting thicker as a result of a
few disclosures of irregularities
and general bungling along the
been

motorists

very

with

41,000

miles

tem

the

same

to grind are confident the

good far outweighs the bad.

Incidentally,

there

are

now

about

10,000 miles of these di*
multi-laned, stop - light ;
expressways open to traf¬

The

fast.

good time on them, i,
they may be entered

make

because

only by access roads, and they
safer because of the neutral

ularly

that separates traffic
going in opposite directions.

and

thousands
who

have

scheduled,

oil

lodging places
great highways. ! ■ * :

industry

pected

expire.

the,

paying 90% of the cost of these
highways, and the various states
the remaining 10%. But one of
the big—and it is huge—obsta¬
cles
is the cost of maintaing
these roads. The states are going
to have to maintain

them, and it

cost about $10,000 a

is going to

to maintain them.

mile

out of the fact that,

instances,

many

every

state, highway departments are

having to pay excessive costs to
obtain
rights-of-way.
Land

prices are expensive and prices
are
increasing. Furthermore, it
nothing

but

right

fair

that

and equitable prices be paid for

rights-of-ways

broad

through

farms and cities and towns.

Literally

families

have

already been uprooted by {this
road
building
program.

ever-increasing

who

smaller

want

The 11 cents

car.

gasoline tax is
and

car

the

other

there

are

gasoline

sured

highways

Roads

families for generations because

agency

and

six-laned

ex¬

plus additional
rights-of-ways on either side,
are destroying their homes and

pressways,

the

over

tive

Bureau

the

highway

evaluation

the

going to make rela¬

the

benefits

the

over

users

evidence before the end of 1961.

There

consulting engineers have made
financial killings in consultant
fees in some states. However,
the

United

States

Bureau

Public Roads insists that this is
not true.
some

Sure there have been

isolated

cases

of excessive

fees, but the picture is not gen¬
erally true.
The

Bureau

defends
neers

use

of Roads

stoutly

of consulting engi¬

the various states

the ground that it—among other
things—"enables them (states)

executive

Association,
Louis

burden,

benefits

run

sub¬

dinner

the

Wal¬

1960

SAN

permit

seek

big
a

City Security Traders As¬

Co.,

Corporation
Financial Chronicle)

MARINO, Calif.—Blalack &

dinner at

continue

the

investment

of Blalack &

ness

Phillips Hotel."
8,

1960

ington Drive.
corporation

(Philadelphia, Pa.)

Association

Phila¬

busi¬

Co., 2477 Hunt¬

Officers of the
Charles

are

new

Bla¬

lack, President; William F. Staun¬
ton

III, Vice-President; Joseph G.

tion at Mask & Wig Club.

from not only to build them but

April

12-13-14,

Tex.)

Texas

H/irsch, Treasurer.

they have

1961

Group

(Houston,

Investment

Internat'l Equities Formed

column

intended

ing at the Shamrock Hilton Hotel.

re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's"

ties Co. is engaging in

June 22-25, 1961

Canada annual meeting at Jasper

Forms Columbine Sales

Park

Colo.

—

engaging in

Lester

securities

business from offices at 3186 West
Grand

under

the

firm

name

16-20, 1961 (Palm Springs,

Calif.)

National

North
are

Security Traders

ciation Annual Convention

Asso¬
at

from

securities

offices,

Bayshore

Robert V.

and

Lodge.

Oct.

Jones

business

(Canada)

Investment Dealers Association of

views.]

own

MIAMI, Fla.—International Equi¬
at

Drive.

1451

Officers

Milberg,. President

Treasurer;

Glorida

berg,

Vice-President

tary.

Mr.

Milberg

and

was

Mil¬

Secre¬

formerly

with Bache & Co.

th<>

Attention Brokers and Dealers:

Palm Springs Riviera Hotel.

TRADING MARKETS
American Cement

Botany Industries
W. L.rMaxson

the

of beneficiaries.

question
whether

Congress
not

Official Films
Waste King

Carl Marks
foreign

securities

20 BROAD STREET

TEL: HANOVER 2-0050

•

Our New

& Co. Inc.

Federal

gasoline

gal¬

tax

telephone number is

6-3840

specialists

NEW YORK 5, N. Y.

LERNER S CO.

TELETYPE NY 1-971

stretchout of the Inter¬

Next July 1 the 4 cents

York

CAnal

Investment

state system or increase taxes.

lon

Hammond

Co., Incorporated, has been formed
to

General

beneficiaries

other classes

face

of cities

interest to

Hattersley, Secretary; and Thom¬

Prentiss

will

The

(Special to The

that

get favored
tax treatment at the expense of

will

sights

group

historic

delphia annual meeting and elec¬

(retired),1
looking ahead to submission of
the report to Congress, recently
predicted that every organized
roads

Travelog—I llustrated

tourists—C.

vice-president

Major

—

Maplewood, N. J., $7.50.

of the American Road Builders'

reports that many

are

the

and

their way.

come

may

The
Fee Abuses Denied

World

Now

(Kansas City, Mo.)

the

Columbine Sales Co.

port

regardless

7023
Super¬
Documents, U. S.
Government
Printing Office,
Washington 25, D. C. (paper), 15??.

The question
is: Where is the money coming

made to increase the tax

No.

stantially higher.

sachusetts,

other states. There will be

ministration—Department of State
Publication

New

Hotel.

Investment

crookedness in

Oklahoma, Mas¬
Florida and some

annual

Dec.

LITTLETON,

There is already testimony of

Association yof

sociation annual winter

41,000 miles of highways
going to cost more than $41

will evoke a controversy.
Certainly every organized group
of taxpayers in the country will
oppose any efforts that will be

farms.

Dec.

both

and non-highway
It is certain that the re¬

users.

request).

(photographs and maps)

dorf-Astoria

Interstate

■

[This
in

Association

Technical Cooperation in Industry
<—International
Cooperation Ad¬

Bankers Association annual meet¬

interest

the

Public

Dec.-6, 1960 (New York City)

been built?

marked

study

(Hollywood

Convention at Hollywood

Investment

Kansas

to keep them up after
the Program

There

1960

Hotel.

York

billion. Some estimates

as¬

Stretchout

Beach

these

schedule.

Higher Taxes

Annual
-

There is every indication that

completion of the

system

begin to draw
from the excise

are

tax

could

they

the

Interstate

gallon

Capital

analysis
Policy Implications—

passenger

roads.

people who do not

cents

revenues

paying the tax at all. They
would be willing to pay more
11

revenues

highways have priority

mind

than

will

highway pro¬
gram is in good shape." Under
the law the vast system of pri¬
mary and secondary and urban

high tax,

hand

Fund

Bankers

Investment

July 1 the Highway

27-Dec.

Beach, Fla.)

The Federal-aid

automobile and truck.
On

INVESTMENT FIELD

Nov.

automobiles
and automotive parts and accessories.
C; ■ V..V,

gal¬

hidden taxes

many, many

gasoline tax.

Business

Economic

George Terborgh—Machinery and
Products
Institute,
1200
Eighteenth Street, N. W., Wash¬
ington 6, D.
C.
(paper)., $1.50

intendent

likely to apply to the 4

upon

particularly in view of the other

heavy

EVENTS

levy the impost.

law to

taxes

removed than it is to

Trust

cheaper,"

that

—

(quantity prices

best

Also

support of this contention is the

owners,

the

cents

this

taxes.

COMING1

ex¬

law

pass

high-:

growing number of compact

Many people are having to leave
homes that have been in their
four

motorists

This

Federal

involving

Years

Allied

room

country have finally rebelled at

vast

these

the

Street, New York 16,
(cloth), $4.50.

N. Y.

lot harder to get a tax

thousands and tens

thousands

The

ways.

laws

revenue

lon

Damage to the Interstate Sys¬
tem grows

equality

the

49 East 33rd

Congress will extend the 4 cents
It is

for improvement in the field of
tax

let

Washington

tax.

along the

Unquestionably there is

Government

now

law,

the

course

Nevertheless,

reduced

Federal

fight

guess

motel;

present

under

to drop to 3 cents a gallon. The

tax

constructed

these

High Land Costs

-it's

and

highway

industry

owners

The

over-

loss."

total

Sixty

to be of marked interest partic¬
tens

X, Y & Z is finally

;

Formation

This report is expected

equity.

are

ground

re¬

subject

Products—

Self-Developing America—Harold
Ruttenberg — Harper & Bros.,

the Bureau of Public Roads
the

New

itself.

interest

marked

Booz, Allen & Hamilton, 135 So.
La. Salle
Street, Chicago 3, 111.
(paper).
YY:
' v'yY

"The slump in your

port of the four-year study by

They are truly great ribbons of
concrete and asphalt. Motorists
can

Newsletter—Em¬

■

Management

com¬

Americans will be the

many

and

cost

the motor vehicle

beautiful

are

the

gasoline, oil, tires and the tax
on

Also

10,000 miles of completed

roads

that

also that
Congress levied higher taxes on

fic, and another 5,000 miles are
under construction.

Economic

bassy of India, 2107 Massachusetts
Avenue, N,'« W., Washington 8,

tem. That was the year

vided,
free

India

pleting the system is going to be
a great deal more than the ori- }
ginal estimates when Congress
passed the 1956 Highway Act
setting up the Interstate sys¬

time qualified observers with no
axes

League
Cambridge Uni¬

—

versity Press, 32 East 57th Street,
Y. (paper), 750.

d.c.
show

Sys¬

highways. At the

stop light.

Guide

New York 22, N.

drive

Obviously, the report is going

proposed

Interstate

Readers

San (Francisco

Inc.,

Economics: National Book

Economic Facets

toad things that have occurred in
connection

on Foreign Rela¬
58 East 68th Street,
New York 21, N. Y., $6.95.

tions,

Incidental¬

will be able to

New York

without
some

Zinner—Council

miles

30,000

roads.

Pub¬

Documents on American Foreign
Relations, 1959—Edited by Paul E.

ly, when these roads jare built, ;
to

way.

been

the

Interstate

—

Department,
American
Management
Association,
1515
Broadway, New York 36, N. Y.
(paper)..

plishment."

already been
struck a damaging blow in a
few sections of the country, and
others apparently will be deliv¬

have

Associa¬

Bookshelf—

ates incentive for better produc¬

The program has

There

Management

10 Post Office
.

Telephone

HUbbard

Securities

Square, Boston 9, Mass.
*

J8-1990

.}■

Teletype

■

BS 69

Full text of Commercial and Financial Chronicle : December 1, 1960, Vol. 192, No. 6008

FRASER