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Uh.
INVESTMENT BANKERS ASSOCIATION CONVENTION
ctions
Volume
188
Number 5804
EDITORIAL
New York 7, N.
:
Y., Thursday, December 18, 1958
Section T
—
Price 50 Cents
We Must Preseive the
Copy
a
The Investment Bankers
As We
See It
Some
weeks
must
elapse? before the
public
By WILLIAM McC. MARTIN, JR.*
learns from the annual messages of the President
what the program of the Administration, and
Chairman, Board of Governors, Federal Reserve System
Federal
presumably of the Republican party, is to be for
next year.
The timing of these messages is, of
course, fixed by law. The Democratic
party,
destined to be in full control of Congress, may
announce its plans at
any time. Its leaders, or
most
of them, have taken advantage of this
opportunity, and issued their "State of the Union
message" in the form of a policy statement. Of
bourse,
no
document
of this sort is
or
in
head
we
During the past year,
the
Federal
of the
explain
to
its
public, questions
to
basic
the
are
the
new
Whipple & Co., Chicago,
(Decker) Jackson, Jr., President,
First Southwest Co;, Dallas. As¬
serve
the
sociation also elected five Vice-
as
the answers have been
repeatedly. The Federal Re¬
System is designed to regulate
supply
of
in
money
order
Presidents: William M. Adams,
Braun, Bosworth & Co., Detroit
I
(2nd term); Warren H. Crowell,
Crowell, Weedon & Co., Los
Angeles; Edward Glassmeyer,
Blyth & Co., Inc., New York; W.
to '*
foster high levels of employment and
stable prices. Stability is not an end
Carroll
in itself but a means by which this
higher standard of living can be at¬
tained
without
and
which
a
From
McC. Martin, Jr.
made
seeking
a
ployment.
time
that
lower
Arthur
cago,
Federal
Continued
on page
address
by Mr. Martin before the Executives'
Chicago, 111., Dec. 12, 1958.
Club of
Investment
Bankers
Fla.,
Association
appear
of
America
D.
Kerr
L. Wadsworth, Dillon,
Read & Co.,
THE
Mr. Kerr is
100
a
NEW
Inc., New York.
PRESIDENT
native of
Chicago (born July 27,
1904) and the second member of his firm to
*'
Chi¬
*
Annual Convention
Bal Harbour,
Hotel,
Americana
at
William
is
Reserve
recession and would like to see a little unem¬
Certainly nothing could be further from the
,
90
inevitable. |
to time the charge iS~**
the
Mead, Mead, Miller &
Co., Baltimore (3rd term); and
standard of living becomes
W.
Continued
serve
76
page
aid
l). S. Government,
Municipal
STATE
AND
Securities
MUNICIPAL
Lester, Ryons & Co.
623
Public
Bonds and Notes
California
v,%
Members New York Stock Exchange
BONDS
HAnover 2-3700
Housing Agency
So. Hope Street, Los Angeles 17,
•
telephone:
on
State, Municipal
in Section Two of TODAY'S ISSUE.
in
State and
was
He succeeds William C.
President.
purposes
imate, but
given
•An
of
elected
Re¬
IBA CONVENTION PICTURES—Candid photos taken during the 47th
DEALERS
bour, Fla., from Nov. 38-Dec. 5u William D. Kerr,
Partner, Bacon,
of monetary
These queries are legit¬
.authorities.
Hon.-
Gavin;
The Investment Bankers Association of Amer¬
objec¬
again arising
M.
Gadsby; J. Erik Jonsson; Committee Re¬
tives and point of view to the general
bitterly fought by southern
page
efforts
System
J
James
ica held its 47th Annual Convention at Bal Har¬
~
best
Addresses by retiring and
war.
Gen.
ports, and other Convention developments given herein.-
have had both recession and
again, fear of inflation. Despite
serve
1
;f
Presidents;
Edward N.
we
recovery and now, once
on gov-
financing; bnsiness outlook; and
vulnerability in cold
incoming
*
In
on
our
exemplified in the American
dollar, Mr. Martin warns "the battle aganist inflation is
at a crucial point," we can afford to
pay what we spend,
and we must realistically produce more tax revenue or
reduce priorities of certain expenditures.
point of fact this body includes the titular
of the Democratic Party, Mr. Stevenson;
the National Chairman; ex-President Truman,
and many state
governors and party chairmen.
What these men say may not bind the
party; in
fact, it does not. Their pronouncement does, how¬
ever, quite clearly indicate the nature and the
scope of the problems which the conservative
elements in the party and the Administration
will have to face during the
year ahead.
Mr.
Truman has since the pronouncement taken oc¬
casion to give full and hearty endorsement to
the entire program thus set forth. Mr. Stevenson,
one-time self proclaimed apostle of moderation,
must be presumed to be in full
sympathy with it.
Parts of the "platform," if that it may be termed,
President* and \
new
as
impact of inflation trends
as
and private
eminent
assist the
head
Continued
ponder problems
cal and monetary integrity
quite the sense that the President's
messages at the beginning of the year are, but a
glance at the membership of the "Advisory Coun¬
cil" responsible for this
outgiving is enough to
convince the skeptical that what it says can not
be lightly brushed aside.
will without doubt be
Bankers elect William D. Kerr
paper
unemployed by flooding the
country with a stream of easy money or by artificially
preventing rising interest rates during recovery. Speak¬
ing with an added perspective gained from a recent trip
abroad, and reiterating important questioning of our fis¬
"official" in
i
printing
the belief that
be
can
Reserve
astringently declares we must
dollars, issuing I.O.U.'s, engaging
non-recessionary deficit financing, and succumbing to
cease
<i
%
•
.
.
Associate Member American Stock Exchange
Members Pacific Coast Exchange
UNDERWRITERS
CHEMICAL
CORN EXCHANGE
DEALERS
BROKERS
BANK
BOND
DEPARTMENT
30 BROAD
ST.,N.Y.
•
Burnham
and
MEMBERS NEW VORK AND
15 BROAD
STREET, NEW YORK 5, N.Y.
•
Dl 4-1400
Inquiries Incited
Bond Dept.
To
Teletype: NY 1-708
Markets
Active
Dealers,
Banks
Maintained
and
Brokers
T. L.Watson & Co.
ESTABLISHED
1832
b. c. telephone co.
Members
Block
Inquiries
Stock
^
Chase Manhattan
BANK
Correspondent—Pershing A Co.
Exchange
STREET
NEW YORK 4,
N. Y.
•
PERTH AMBOY
(Rights Expiring March 17, 1959)
We
offer to buy these rights at
current
Teletype NY 1-2270
DIRECT
pi RES TO MONTREAL AND
NEW YORK
Toronto, Montreal,
.
TORONTO
1 NORTH LA SALLE ST.
'
For
"
f>
California
■
''
...
*
*
•/ T
*
Halifax
Municipals
,
Goodbody & Co.
115 BROADWAY
the
market.
DEPARTMENT
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
The Canadian Bank of Commerce
Victoria and
CANADIAN
goutfuoedt company
Southern
Ottawa, Winnipeg, Calgary, Vancouver,
*
25 BROAD
DALLAS
New York
Direct private wires to
Invited
New York Stock Exchange
first
on
California Securities
Net
IS#!*5"
Ana, Santa Monica
TELETYPE NY f*OM3
COBURNHAM
American
San Diego, Santa
OF NEW YORK
Company
THE
Pasadena, Pomona, Redlands, Riverside,
AMERICAN STOCK EXCHANGES
Distributor
Dealer
Encino, Glendale, Hollywood, Long Beach,
THE FIRST NATIONAL CITY RANK
CABLE:
Underwriter
BOND DEPARTMENT
Offices in Claremont, Corona del Mar,
CHICAGO
Domeooti Securities
CORPORATION
Associate Member at American Stock Exclk.
48
Exchange Place, Mew York 5, N. T.
TaL WHitakaU 4-A1A1
Taie.NY 1-702-3
MUNICIPAL BOND
r-
^
k
department ::'i rr:•
Bank of America
NATIONAL
JIySiVc? ASSOCIATION
300 Montgemery St.,
*
|
San FrancfsttL CeBfc
\
■-
—
-
J
,
">V-'
•
kmdm
The Commercial and Financial Chronicle
2
...
(2518)
Thursday. December 18,1958
XXi
The
Dealers only
For Banks. Brokers,
Security I Like Best
Vj
Year-End Tax-Switch
A contianom forum in which, each week, a different group of experts
b the inYestment and advisory
Problems?
the country, ca^t
over
help solve your problems
Take advantage today
for
our
Members
service
lem.
Primary
issues
400
on
The Hertz
OTC prob¬
markets in over
available to
are
Just call "Hunseatic."
Exchange
New York City
v
any
It
you.
York Stock Exchange
New
;'v'/*1 '
f
Corporation
difficult
still
is
is
Best" j*?*'
for,
Like
I
Security
"The
...
>
stated
as
e
soundly
ago,
year
efficiently managed
and
financed
New Yorit Hanseatic
a
choose
to
abound
'
S
h
c
u
'
large ' and small businesses are
finding it much more economical
the
for
of
use
corporation business.
mate
19 fleeter St., Hew Yerfc ly fLT. ;
;
thisr, year,; approximately
f,
in
A more re-
tenwrMlit
a
Associate
120 Broadway, New
BOSTON
PHILADELPHIA
one
of
vate
Principal Cities
more
or
fields
SAN FRANCISCO
•
to
Wires
of
UR-SELF business, it was easier!
as. a Profit-making vehicle
for
the
Corporation to expand
^,e investor—k • P^ys a good
through the establishment of li-;;
°* ^ash and stock dividends—
censees.
Franchises were offered 'ls.-soundiy financed. -Members of
pri-jupon
—
to
revolut¬
one
IA
RIGHTS
choose
premises,
or
The
Hertz
I
today
Corporation.
America's pre-eminence today in
the world of business and finance
SCRIP
&
this
premise,
Specialists in
is
based primarily
.
the pio
upon
the years, established
selves as leaders.
who
conceived the idea of
ing,
for
New York Stock
Exchange
Stock
Exchange
Plan.
American
BROADWAY, NEW YORK B
120
rental,
mobiles
TEL.
REctor
business
idea!"
broached,
that!
is
I1
that
was
J'What kind of a
p
the pvnpripnfp
experience
Had I, had
then
offer-
passenger autoDRIV-UR-SELF
When first it
exclaimed;
I
2-781S
the
on
accumulated
have
since, and had fallen for Hertz's
idea, I would now be a million¬
aire—to
the
use
word
loosely—
and, of course, "before taxes."
It
it
Talk to Talcott.
whose
tomers
are
their
good
with
faced
■
will
and
the
loyalty. If you're
of limiting
decision
wish to participate. Re¬
if you, as a banker, feel that
are
second
a
trate
big way by the acquisition of
vehicle and operating assets
0f one
of
the oldest and best
offering
business, and
FACTORING
of
source
to
it
vehicular
was
NEW YORK
DETROIT
area,
Investors Diversified Services
on
the
Investors Syndicate of Canada
one
>M. H. BISHOP A CO.,
1990 Nsrtfewestsrn Bank
one
-
)
JP126
\ Members Gregory & Sons Wire System
or
longer
V
°
advantage
j
xhe
reads
of
t
leading
the
attrLt^'e
was
follows*. As low as $-79
as
We
Provide
.
;
development
that has fired the popular imagination is the announced association
with the American Express Comand
pany
convenience
recent
facilities.
has made
a
Q
..
lVOodward
■'■yvX'""
'
Branch 'Office
—
Bay City, Mich.
—
i,
v
.
t
municipal playgrounds and patios
of homes all , overt the cbuntry.
swimming pool equipment, plus
local installation-labor, together
with supplies for operating existing pools, this industry has grown
from $50 to $600 million in total
annual sales in the past decade,
This
com-
The company
—
National Pool
publicly
Equipment Co., the only
substantial capi- owned and widely held company,
with in this industry. National Pool's
tal investment in Hertz stock
options to buy more at prices annual sales have climbed steadranging up to 60%.
*
ily from $453,000 to the current
I think I have given enough of lleyel of $3,000,000 in the past four
"Ev-
years
Building
DETROIT 26, MICH.
ana attractive basis. .
Tlie industry — the residential
and ' commercial1 swimming pool
equipment industry, whose growth,
Is attested by new; and glamorous
sparkling azure blue pools being
installed in motels, hotels,- clubs,
leader in world-wide travel
credit
bask
;
Complefe "Ccfiinting the .sales price of all
& oil.
Another
-.v-f.t'
1"
Exchange
Exchange
1051 Penobscot
.
,
,u
Stock
Stock
,•
.5.
that
tho
shares of
its
industry, tnax tne snares 01 11s
company are v presently
Hertz
nn^n entrrelv realisticT
.
/
Insurance; You Pay for only Gas
pany,
Members
Midwest
Detroit
inereiore reaiiy excit
discover," in a new growth
r
-.
'$SAVVt$>
do not intend to bore you with a
year. The stock, currently selling
lot of statistics; but the manage--at under $4, appears in"my opinment is confident that the annual jon to afford an attractive growth
volume of business of the Cor- specuiation.
>.
w
poration, estimated at apprbxiPrinr tn WnrlH War ll
a swimmately $90,000,000 this year, will
n0
nool Wa<? an exnen'sive luxexpand to $200,^000,000 during
with HoUynext five years.
; '
,wood stars' estates or with the
„
s
the.^^^aaMfislated
During the past decade, the tmost exclusive hotels and clubs,
apt to imagine, 50rati0 of revenues
of net after Radicany new construction techcars tm the country s
; taxes has been between 17 and piques and a broadening market
will be rented by the 18 to 1; and during the past thfee
have slashed swimming pool cost-s
01 mon
'or °n
g
15 t0 h During these most recent; to such an extent that a complete
:
brings
development in
MINNEAPOLIS
TE 9-2205
vear
mu
service
business,
fewer
SOLD
,
N. Q. B.
mmtmm
HmmffUL ST9CK M9EX
iS
,ttL. f
Building
.
)
in
—
MOREUM S GO.
.
in fleets of five or
of all motoi
highways
)
rar-?
P^ssengei cars in neeis oi live for
o
more
umts under
contracts,
the
prospect,
BOUGHT
panjes jn the full range of growth
,
as
thr
.
"COMPANY!;
•
1° i! mSvSrfdevelopments for some years to'
K.
therefore reallv excit-
1CG rfn
highways today
(including trucks)
represent
DRIV-UR-SELF passenger automobiles and leased trucks, where-
Control Data
'
National Pool Equipment Co.
.
including the everelectronics and drug
mf ii?p° ^ fields, arer selling at prices which
thus rounding out the serv- ajready fUny discount favorable
r»a«;senf?er
as a much sought-after convenience, and highly profitable,
the present management has estimated that only 2% of all auto-
)
v
country which have been leasing
dependable
objected that
DARLING
Atlanta, Ga.
New-
in
into
go
"
•
companies
leasing
LA;
J. H. Hilsman & Co., Inc.,
these
mobiles
;;
long-term contract to a ■ number^^ industries,
of outstanding commercial firms
p 0 p u j a r
itself
Primary Markets
-
>
V'U-"
days owns a car the high lights to acquaint eveii ^eafs,- and its earning power is
himself; so who's left to rent the most; casual reader of this - now becoming apparent, with 59
one?"
Although the DRIV-UR- .article with the outstanding pio- ^cents net profit per. share being
SELF car service has established
neering achievement of Hertz. T reported for the first half of this
erybody
write
YmuricM
;
STEWART
W.
.
some
it.
But
or
Securities Comp any
anannualjjln today's; investment market;
volume of $1 k million. .Theunder; the shares of most leading comfleet
mcludes
600 trucks
private individuals when they
want
James Talcott, Inc.
always
an
Call
in New York: City! with
step
the passenger car rental
FINANCING AND
l
truck
known
became
that
on
For current information
(
.
the
,
COMMERCIAL
'
broker.;
or
THOMAS
a
was taken.
ubiquitous.
Taxis here, Taxis there (except
when you, yourself, wanted one
in an emergency
or
in stormy
weather), so let others concen-
to you.
CHICAGO
hnsi
busi-
Corporation a year ago
trucking business m'fl
the
ficatioris;
Then
■
.
b
leasing*, banker
return to long-term
the
Taxicabs
acceptable
again
To
•
client requires special financing
beyond the services of a bank, Talcott
can supply this additional working cap¬
ital until such time as the needs of
V
;
v-
thev- well-known
statistical';
services;-ask the advice of your.;
X:\
entered
ness.
your
customer
use
Let somebody else per month* Full Maintenance; No
responsibility of man- Capital Investment* Tax Advan-'
ufacturing them, and concentrate tages* No Unforeseen Expenses;
upon offering taxicabs for-hire?-simplifies * You r - Accounting;
Could be, and, as it turned out,
Drive New Car Model of Your
become a highly profitable -busichoice' Equipped to'Your Speci-
which you may
your
to
Nation.
Pomtorn-
Motors
Motors
its Yellow Cab raanufactur-
assume
loans, Talcott will cooperate with you
In working out a financing program in
member:
entitled
ural first step.
porarily beyond your loaning policy,
James Talcott, Inc. can help you keep
.Vv
•
fleets of taxicabs yourself—a nat-
tem¬
.
iian<n- Committee include
the"Hertz- reallyYop flight investment bank-
succinctly expressed
ing business. From manufacturing Jn an out-of-town newspaper that
them for others, why not operate"
happened to fall into my hands.
have loan cus¬
requirements
hrnkorapo
brokerage
General
uenerai
the
tnei
pany
FINANCING?
If you
stork
siock
thn
tne
own
my
that John D. Hertz acquired
from
xrom
ACCOUNTS REQUIRING
SPECIAL
in
in
ness,
HAVE
YOU
30 vears aeo about
da years ago, about
established
I
time
firm
iirm
DO
some
was
the
highly profitable..
,/•*, -"V-
A- final word: the record
1
responsible local operators who
The Hertz
-
Among these is John D. Hertz,
Members
X":t
of New York, Inc.
Whenever these 'liCehsees:-;®^®^^' ^r#ears,V* ^
become firmly established in an Jh
;; Aftitiatt of.,
X
admiration and
5pn" ;
Yamaidii SeesrHies Co., Ltd.
:
area, an offer is made to absorb
fidence of th0 investing public. ^
them directly into the parent en- j.
My advice to all those who like
Tokyo, Japaa > -■x. X.;;,
Brokers & Investment Bankers /
terprise, and Within the past few current income on a potentially
months, two or three licensees rising scale, as well as long-term
111 Broadway,N.Y. 6 COrtlandt 1-58M
down Florida
way
and another capital appreciation, is; Look upgroup
up
Minnesota way have the statistics as reliably compiled ;
them-
over
McDONNELL&0a
prove
V "V'
been taken into the parent organ-tby
.
spirit of those who have,
neering
Since 1917
lease.
Ahe
Stanley Heller
1
Upon
long-term
or
V''
beginning of the DRIV- X
name.
dis¬
or
covery."
1
■
were
ionary invent
tion
branch offices.
-
enter¬
prise
rental,
the
At
leadership in
CHICAGO
•
f
Private
York 5
Teletype NY 1-40
WOrth 4-2300
rary
1)9 sis*
outstanding
Exchange
our
1963—$5.50 to $6.50., M u 11 i p i y
be based upon
Member
American Stock
wires to
$4.30; in 1962 $5 to $5.75; and in
.
•'
MV1-1957
Mobile, Ala.
Direct
private plane area, ami these estimates by 10, 12 or 15 '
the
Hertz
management is how, and you will'readily see that thp
embarking upon the business of: American .Express options runoffering aeroplanes on a tempo-; nfng up to 60% are likely to
choice," I then
stated, "should
Established 1920
f.;!, -
.
New Orleans, La.- Birmingham, Ala
$2.90 will be set aside for net iricome; next year $3.50 to $3.70; in
i960—$3.60 to$4.: in 1961—$4 to;,
ears
engaged
Members New York Stock
Members American. Stock Exchange
shares, totalling 2,133,791, I esth-
executives
their
while
saiesraen
and
of passenger
fleets
lease
to
Steiner,Rouse&Co.
"
i
js jnto the
America
'
"■
Co.—
of
Stewart,
*
cent extension of this general idea
6 rpJls.es
in
u
W.
J. H.
Hilsman Be Co., Inc.,* Augusta,
Ga. (Page 2)
\;
y
,
wide variety of heavy ma-
a
Equipment
Pool
Thomas
chinery, and in the trucking field.
Sales and other representatives of
iVy;r /V:-;
..
and
Partner, Stanley Heller &
Co., New York City. (Page 2)
National
i
and American Stock
:
facilities
assistance and reli¬
get prompt
able
v
xt
Louisiana Securities
Corporation—Stanley Hell¬
er, V
V
offer to sell the securities discussed.)
as an
"accepted practice" in mqpy fields
1'if-,
of endeavorr-Real Estate, HouseCo,* New York City
Appliances, Machine. Tools
^
o
Stanley Hmer
you.
of
„
«*
,
0
long experience and full
to
they to be regarded,
STANLEY HELLER
reaching banks, brokers and
dealers all
Hertz
private wire sys¬
Our nationwide
tem,
Their Selections
(The articles contained in this forum are not intended to be, nor
are
Alabama &
Participants and
field from all sections of the country
participate and give their reasons for favoring a particular security-
Try "HANSEATIC"
^
This Week's
Forum
'
i'X'T
■■
Which
us
this
to
'
a
-
-
-further
rapidly
ex-
panding Hertz idea—offering both
passenger cars an^ *^11^ -rm
term leases.
So attractive has this
leasing idea become that it is
rKHV
fraction over seven cents
patio residential pool installation
now compares favorably with the
has been *aved f°r the s+ockhold- prjce cf a new Buick, Oldsmobile
ers as divisible profit. How much ;or Cadillac
In 'fact a swimming
years a
out
of
every
is Hertz
dollar
common
of
the
of
35 industrial Stocks
FOLDER ON
REQUEST
,
revenue
stock worth
pooi
can
this prospect?
For
19-Year Performance
•'*- '
outstanding common
r<
^
-
^
.
toe
financed over a far
+•
j
'11*
071 page^11 o
NstMal flwtatiM Buccal
Itfveat Sheet
NewYerfidwILV.
(2519) \ 3
Number 5804
^Volume 188
The Commercial and, Financial
. .
.
By GORDON W. McKINLE Y*
'■iv
l.v
Director of Economic and Investment Research a
f
Prudential Insurance Company of Ameri£a',Newark, N.
i
IN D E X
1959
The Business Outlook lor
h
Chronicle
■j >■
,
*.
i
Vi
,
—Alexander Wilson
;I
want
4 paper to - a ?: discussion' of . the
( business, price, and money market
for the
think it will
:J outlook
"
help
make
er
year
Recession and Recovery
I
ahead.
to j
us
>
( of 1959 busiI ness prospects,
however, if we
first
--
devote
a
period to
review of
brief
•
:;
'
The Economic
>
I
,,
,
.
.
,
„
"Gun-Jumping
*
ASSOCIATES
•;(>
COMPANY"
*'
""Prospectus
Space Strategy and
—
Gavin._ 24
♦An
address ,by
12th
the
Annual
Correeprnrdents
of
Bank
tional
Dec.
2,
Members Salt Lake City
—COMMITTEE REPORTS
1
Industrial Securities Committee________
______
Public Utilities Committee_______
Committee!
Telbtype:
27
_
28
Committee
___^_
Salt
Committee_L;__jL_z__L____
Committee.
Governmental Securities Committee
Railroad Securities Committee.
L
Oil and Natural Gas Securities Committee
Canadian Committee
32
Nuclear Energy
33
Alsco
34
35
_______
36
r
Winners of Golf
Robert O. Shepard
.(
Mr. McKinley
(xovel'nofsMTBA'Tj_r2 -Chairman for
New
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f
.
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v
•
, -
'
►
.4
;
-
.
.
.
! *'
*■
77
77
78
79
79
Convention appear in
Singer, Bean
&MACKIE.inc.
-
Teletype NY 1-1825 &
the course of the
today's 24-page
Conference
of
Sponsored . by. First Na¬
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"'J " -
*
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As We 5ee
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Pictorial Section.
^__
Reporter
Commonwealth Oil
Securities
Securities Now in Registration
Railroad
!
!
Prospective Security Offerings
—
Securities Salesman's Corner__
u.
The Market
.
and You—By Wallace Streete
The Security J Like Best
!
1
-i
The State of Trade and Industry
Washington and You
•—;
;
82..
1958.
Refining
10
12
110
111
16
—
5
92
-118
91
*
112
1
on
.
Common
Commonwealth Oil
Refining
F. L. Jacobs
—118
—
.
——
—
•
89
16
2
4
Syntex Corp.
120
i
Uranium, Inc.
Copyright 1958 by
'
*
Published
The
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specialized in
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Twice
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i
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.
Chicago
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Governments
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Stocks
Indications of Current Business Activity
Mutual
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News About Banks and Bankers
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PICTURES taken during
CANDID
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Automation Instrument
(
Candid Pictures Taken at
.
Jerrold Electronics
1958-1959r___JniC'Ztr'^'19*
National Committee
production and sales
between
before
of Bank
>
Reports on Activities of IBA
Education Committee
Foreign Investment Committee, Headed by Joseph T.
Johnson, Urges More Private Investment Abroad
"The Richest Man in Babylon" (Story on new IBA film)__
JBAEssay.Contest Winners
manufac- tjqn; the last line shows consumpindustries, and tj
h t ^ sometimes caUed
•,
Basic Atomics
Pacific Uranium
-Cover
i___119
37
76
Convention
Tournaments.
In Attendance at the Convention
President'-Elect William D. Kerr's Address
IBA Holds 47th Annual
—12°
8
8
'
City
30
Aviation Securities
housing expenditures,,,
end-product sales.
Lake
31
^
number of
JCY 1160
Direct wires to Denver St
29
Committee.L_J__1_
Investment Companies
DIgby 4-4970
26
...
Stock Exch.
Exchange PI., Jersey City
25
Municipal SecuritiesCommittee___,______
our
taring and mining
also data showing the
J.F.Reilly&Co.,Inc.
22
1--^-l_i_!____.
Economic Growth—James M.
Federal Taxation
request
Technical Business
a
State Legislation
on
18
20
L—iJl:
in
r—^T." E. Jbnsson._L__.____*
i.
serve
•
'I 'i
•„ -
• <■
ACOUSTICA :
•
Sustained
—Edward N. Gadsby.
V^rt which the inventory adjustgross
J"nent played in the recession as
have included the Federal Re- shown clearly if we compare the
Board index of industrial las^
table with the first
production which measures the line. The first line shows produc-
physical output of
f
:r
WESTWATER CCWRP.
45
Jr.J_._l__:
Problems UMer Section 5"—
.Fi'jOblem£ of Management
make up the
national product. Below that
■
...
—William C. Jackson,
segments which go to
1
PERMACHEM CORP.
,
Editorial Coverage of IBA Convention
Economic Recovery Will Be
While business spending was ,
dropping sharply, otner-. types Of :
spending showed only a , very
small decline. Federal Governmerit purchases remained stable, *
state and local government spendr°se,
,
17
,
mg
~
14
....
NEW YORK
WALL STREET,
_l_i__15
of Bright Future ,
<
ADDRESSES
.
;
Obsolete Securities Dept.
THE UPJOHN
.V
quarter
,
99
Telephone: WHitehal! 4-6551
Outlook—Harry A. Bullis__.:__l___:_
>•
'
9
showed little change, and conyear. The next seven lines—from sumer spending fell by less than
; Dealer-Broker inB«oksheif^___ Field c
_______—
-__r
nnt—hnlf nf 1 <>L
*
• " * ' ' >':■ r - - -- BusinessEventsInvestment Recommendations _j. L_
Coming: Man's the Investment
inventories
down through con- one-nait 01 1/o.
#
Emzig: "Does the U. S. A. Gold-Outflow Strengthen the Free Countries?"
sumer spending—show the major
From Washington Ahead of the News—Carlisle Bargeron
:
The tremendously important
.
,
P. Schmidt—
Market and American Business
. „
.
'isCy
in 1958
Ntmjtodney Spendlmr
De«Uned
;
7
_'l: 12
13
j __ i. i ^ -
^
cash at
i 11
*
i__
Small Business Act ;
1
i.
1
'
__
Automation and Life Insurance Assured
r—Roger W. Babson....
"((.v.~' '
* * ' *
•*; . - *
Wholesome Food for Thought (Boxed)._
.
just a word about
at the left of the
table below. The first item—gross
national product—is the best overall. measure available to us of total
economic activity in the United
States.
As you know, the gross
national product is the total value
of all the goods and services produced in the United States in a
i
;.
decline of
say
6
__-
.(-(—Arnold R.. Beardsley
.
the line headings
•
Woodward...
Prosperity Not Guaranteed—Emerson
'
,Let me
_
The European Common
4.5%.(Referring to
4*a
the individual segments which go
( the recession
to
make up the gross -national r
; of early .1958
product, you will see right away ;
and the recovthat practically all of the decline
i ery in the last
in national, output was caused by J
:halfof the
a
fall in : the first two* segments, | year. This will
Jordan W. licKlmUy
i.e., in business inventory pur¬
( enable us to
chases .and; in
business capital
f get clearly in
r
v
goods purchases.
r
."■( •*
f mind where we stand today, beIn
the third, quarter of 1957,
| fore turning our , attention to
businessmen had been accumulat¬
4 probable happenings in 1959. T
1
In the table below I have en~ ing inventories at a $2.2 billion"
i
tered
the
principal economic annual rate; by the first quarter
:
measures
for each quarter from of 1958, they were liquidating iri* the beginning of 1957 through the
ventories at the unprecedented .
third quarter of 1958. I have also rate of $9.5 billion. The turn(i included my forecast for the cur- around in inventory policy alone,
t rent fourth quarter,'along with an
thus accounted for $12 billion of estimate, in the last column of the the total $20 billion decline in
4 table, of the probable full year output. At the same time; business
4 1958 figures. The first official fig- expenditures on plant and equipi ures for the year 1958 will not be ment fell by almost $6 billion. The
available until the end of January, decline in these two types of;busi-, ,
"frxtHMifetnk-4he.estimates, io-.this.jiess spending thus accounted for
: table
will turn out to be quite $13 billthn 6f "the"total decline„ of^
( close to the official data when it $20 billion in national output.
is released
■ r- , •* *■
.
Bi.' Barnes
-—Wendell
national product at an an¬
$445 billion. This
was the peak rate just before the
recession began in late 1957. From "
the third quarter of 1957 to the
first quarter of 1958,
gross na-- tional product fell by $20 billion •'
—a
.:_•
How thO SBA Will Administer the
nual rate of over
evaluation
Wilbur D. Mills__i__
plenty of time
99 Wall!
Z-l—-___iJ__
Bright Business Outlook—Donald B.
gross
sound-
a
the third
Investment Opportunities?
Equities—Ira U.Cobleigh^_
Factors in Economic Growth
Fiscal and Monetary Policy as
that's
to shop for.
v
Ailments and Altitudes of Airline
reached a peak
of 1957-with
Business activity
in
But
:
(;.—Maiirice H. Stans___L__ -
—Hon:
TILL GHRISTMAS
'
.■
DAYS
SHOPPING
4
______
^(—Philip Cortney ;Li______i
This Growing Economy and the Federal Budget
private, housing units started;
will explain the last, line shortly.
devote (most; of . the
to
/
__.
Are Our Greatest Foreign
Where
ONLY 5
]tacKinley____*__.ii
Douglas_L_-_i__;
Visionary Santa Claus and God's Children
A
currenti recession-recovery
reviewing
Cover
3
;
p
___
W.
—Lewis
and in comparing
prospects for major segments of the economy in 1959 with
performance in. 1958, the Economist observes: (1) surprising
decline in Federal spending during the recession's low; L(2)
unique counter-cyclical, housing industry's behavior—due to
fixed FHA-VA interest rates; and (3) factors bounds to inhibit
upward pressure on prices for first half of 1959. Also antici¬
pates 1,150,690 private and 50,000 publicly fmanced housing
•starts in 1959—close to recent high levels—or a total (of
more
than $1 billion over the 1958 figure;, and growing
stringency in the money and capital markets. ;;v- S
In
.?
.
.
Jr._
1959—Gordon W.
Martin,
Repeat the Mistake of the 1920s"?
•"Shall We
prosperous
a
McC.
"--—William
The Business Outlook for
1959 with the
danger of inflation reappearing only at tfoe end of the year.
Dr. McKinley's forecast of more than $455 for this quarter is a
hit more bullish than unofficial governmental economists7
estimate and his projection for 1959's GNP is >$470 billion.
Prudential economist foresees
Dollar's Integrity
We Must Preserve the
"
J. > •
?
Page
«'
Articles and News
;
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4041
Teletype NY 1-4040 ft
•
Direct
Wire
to
PHILADELPHIA
"•
I
j
1
v
4
The Commercial and Financial Chronicle
(2520)
choice, of owning property,
preserving the rights of minori¬
ties, indeed of all the basic con¬
cepts that are embedded in our
Thursday, December 18, 1958
.
..
own
of
"ShallWe Repeat IheKS
Mistake of the 1920s?"
An example of the sort of prob¬
to
which
the conservative
lem
should
Chairman, Mutual of New York
Former U. S. Budget
v
'
is
Food Price Index
function of
the
intervene
in
affairs
-
est, of these changes that I should
history over the last half like to discuss in this paper,
century, I think we must conclude
1 I am confident that what I disIf
review
we
objectively
the
of
that the
period is
revolutionary
in, modern
times.
one
of the most
in
in
state,
we
iden¬
can
tify
without
exaggeration
being fan¬
as
tastic
of
relatively conservative-minded
-men. and women—indeed, of all
people—is to accomodate their in¬
:
magnitude
and character.
Within
Lewis
the
W. Douglas
tellectual
orbit of international
has
has
in
such
this,the most revolutionary period
of history since the disintegration
order
completely
so
Never
of
snan
up-
,
migration
+i.iir^+
sharp
—f
the
to
East
tv.
and
'
tween two such
of
based,
chasm
Fmniro
time,
between-the
if
indeed
there
in such
a
all.
And
any
'
such
of
trade
in
m
iect, on
Pointing to these developments to support its prediction of
continuing betterment of the steel market, "The Iron Age" on
Wednesday of this week stated that steel users are rebuilding
inventories and this buildup is now barely
underway, adding
.
that it will develop a full bead of steam in the first and second
quarters' of 1959. -"Y./' ■ (.'•/
are
operating, try
to
direct
violent
pressures
revolution
be
could
last
that
50
activity
which
into
fundamental
American
principles upon
society - rests,
^eh, for .example,
the Individual-. to
as
the right of
and - to
expend, to invest, to make a profit
or
sustain a loss, to
enjoy the
SaVQ
^nan privileges of speak-
address by Mr.
Douglas before
The Life Managers'Association of
Greater
-
with
the
inS One S mind, Of seeking redreSS,
Of Worshiping the God Of one's
1958.
advent
of
crisis, which should
that
have
in
occurred
as
a
the
sur¬
com¬
mercial
relationship of our own
country with the rest of the world
the
consequent
extremely
fragile stability of the interna¬
tional
financial
system that on
and
balance it would
interesting and
seem
more
to
of
me more
a
novelty
•/
the financial district of New York
OPPORTUNITIES
you
can't read Japanese,
a great many
That's where
we
the general economy of
panies, information
in. We
come
on
can
scene
and
or
want
information.
help with information
Japan, information
securities,
people can't; and
on
particular
profoundly
Feel free
as
to
ask, there's
telephone,
no
or
charge
or
obligation, and
Co., Ltd.
Broadway, New York 6, N. Y.
Telephone:
BOwling Green
are
welfare
and
country
influenced
by
9-0186
This
orders.
they
I
,
;;
,
still many users who
are
more
'
are ordering 30 to €0
looking 90 days ahead, continued
are
J
•
,
.
.
'
'
.
that
means
will
users
have
going to rebuild inventories.
are
\
,
;
■
to
order
steel
more
if
/
.
'■
Plates and structurals
now,
bars.
-
mand
are showing signs of a
pickup. Up to
the market strength has been based largely on sheets and
In the Midwest, notably Chicago, plate and structural de¬
has been improving. This trend will spread to other areas.
The
metalwoiking weekly further commented that last week
this
and
week
conviction
that
the
flow
this
of
will
from
orders
be
good
large carmaker has started to lay in
orderly shipments from here on out.
This
market
a
automakers
model
stock
now
suggests
At
year.
least
a
one
is planning
and
/;
-- /
trade
authority pointed out that the improved steel
be obscured at the start of 1959 due to the official
may
increase
in steelmaking capacity.
New capacity as of Jan. 1 is
expected to be about 146,000,000 ingot tons compared with the
current 141,000,000 tons.
The
-metalwoiking weekly cautioned that on this basis the
turning out as many tons or more on Jan. 1 than
they were on Dec. 31, but the steel ingot rate might drop due to
i he increase in capacity. \
'
'
mills could be
Automotive production last week declined below that of the
prior week
as a result of labor strikes at Chrysler Corp,., which,
prevented the industry from achieving a 1958 production high.Oi) tbe other hand such ^ car- manufacturers as General Motors,
Ford, American Motors and Studebaker-Packard stepped-up their
assembly, output.
■
"
V i
.
•
"
In
the
electric
industry, kilowatt production again set an
all-time high level exceeding the previous high record of the
week before.
■
Trade volume
in the
•
-
•
latest week
also showed
improvement,
spurred by cold weather and sales promotions, by exceeding the
level of the like period, a year ago. Christmas shopping is now
at its height and merchants look for a record volume of sales for
the
season.
;
,
The
that
new
employment situation in the week ended
Dec.
6
shows
claims for unemployment
compensation increased 88,400
from the preceding holiday week to a total of
390,900, the United
States Department of Labor reported.
'
The
rise, attributed largely to layoffs in outdoor work affected
by the weather, was nevertheless considerably larger than the
67,600 increase in the like week a year ago. At that time, new
claims totaled 396,100.
Idle workers drawing unemployment compensation also in¬
in the week ended Nov. 29, the latest for which reports
were available.
The 116,900 rise to a total of 1,873,700 also was
largely seasonal, according to the department.
The increase
,
,
creased
the
up
currencies against the dollar.
\
4.1%.
was
rate
insured
of
unemployment
from 4.2% the week before.
*
'
'
"
*
"'
~
to
4.5%
of
those
A year earlier, the rate
\
■
should, at this point, draw the
between
a
hard
cur¬
world currency. The
Canadian dollar,
perhaps one or two other
rency and a
Swiss franc, the
can
well be labeled
as
hard currencies, but the volume of
world #rade
Brokers, Dealers and Investment Bankers
61
we
write:
improving and
Industry is chewing up more steel due to better manufacturers'
eligible,
currencies
Nomura Securities
,
'*
brought
and
your
is
to order farther ahead and build up their inventories.
there
particularly of world
distinction
needs.
economic
currencies,
I
to
users
variations in the value of foreign
on
com-
special studies tailored
their
the internal health of our
are
if you can, you're
away from the
also
,
speak about.
that
INVESTMENT
forgers
.
obvious to the
person in Keokuk, Iowa, in Elgin,
Arizona or Memphis, Tennessee,
or even to many in the heart of
JAPAN
close
steel
days ahead, more and
this trade weekly.
,
questions of./
affairs, " especially
apparent
another Berlin
and
Consistently optimistic forecasts that 1959 will be a better
year economically than 1958 have prompted both big and small
While
the
many
stampers
in the first half of 1959, it added.
^
4U*e
from
appliance makers are taking in more steel. Demand for linepipe
and oil country casing and tubing could catch fire at
any time
••
government
It is perhaps not
as
...
Singles Out International Finance
to
your
improving. Some auto firms already have made plans to step
their supplies over the next three months and have passed, the
along to the mills.
•'H/;
V-r;,'"'-''-.
Demand
problem of inflation and the high¬
ly contradictory series of publicpolicies which necessarily limit *
the power of the Federal Reserve
System; to control it. V
;
Tlxero-
industry is good
word
authority. There is the long-term
international
auto
and
up
the weight of the former
upon the individual and the coun¬
try's institutions; -and the vast
enlargement of the area of eco¬
has insinuated
'(•
i
i
,
ture;
latter
■
order
It further noted that demand from the
is, for
example, the question of taxation
and the volume of public expendi¬
nomic
-
backlogs, it noted, are mounting and shipments
also are increasing, but incoming orders are such that .most mills
will enter the New Year with healthy order books.
One mill
reports its backlogs are up 23% over a month ago.: *
'
f
There
prise. But it is of the international
monetary system, the wide changes
the
~
even
Steel
of change' and
many
matters
discussed.
J-
-
"
by
years
not have come upon us
the best and, indeed,
preserve
which
undergone
York, New York City, Dec. 8,
identify these noval forces
the
over
to
vital national inter-
Perhaps
'
v/--. K:U
them and to control them in order
nnnnnntinr,
connection with the of
ef-
our
to
ficd
_
The-problcra'hf'tKe'eonsci-vative"
that
revolutionary modifications,
1R
is
^
is
and
so
d not exist at, all.
~
financial system and the international movement of commerce in
channels
a|
Rhlensrfted and aggrayatedhy two
jat wars and their aftermath
..
never
monetary
acl
have been creatcd^dui--
,
short span of time have
international
act
Vf. Revolutionary period
FJ?
two;
.are
fax
? ow+n con^Pt^,n l)J.
Vfre a ^rue Reflection of
a
,asf
be-
short
a
F,1V
iffii
.
large segments of
Never in such
amenities left at
New
Romnn
a,,u
have the .amenities of diplomatic
conduct been so profoundly deT
Tt
It
,
tonne yative bent
continues to
think, and
to
..*■
philosophical
the world.
span
the
„
nle ^oiy Koman ^mPnc.
short
a
the West of the centers of power.
Never in such a short span of
time has there developed such a
the
tl
of time has there been sueh
span:
a
strikingly
short
a
their
and
processes
iudgments of policies and measurcs' both Private and Public, to
the changes that have occurred in
environment
less
international
the
things been
rooted.
the
no
such
in
Uoe
time
of
"affairs
changed
Never
/M;//■:"
of
big
-
a
■
both
in
one
•
J
upturn in steel demand is gaining speed and the
push will really take hold after the turn of the year. ; : *.
"
each
nation
equally
am
D^^rtjrur;VBurns has spoken
countrymen—whether. he be pointedly and wisely about this
.' butcher, ' baker * or
candlestick question.
-rY,
/•maker;, he be engaged in the
There are many other examples
business of insurance, the manu¬
about
which
the
conservative
facture of automobiles, of mining
should
.adjust * his- intellectual
non-ferrous metals, of extending
processes which could be cited if
credit, of healing the infirmities
he is to preserve some measure of
of the ill, or indeed of any others
influence in .the development of
useful occupation.
'
public policies. It is" within the
One of the greatest difficulties context of
a
society much modi-
fron¬
of
but I
'
The
our
with¬
the
tiers
matter;
oversimplification
iouches the' lives of each
*
$
structure of
society,
the
of
an
Industry
,
.
not, therefore, how to avoid doing
what people expect governments
to do, but rather by the enactment
of what measures and the employmerit of what devices governments
will attempt to reach the objee-
?•jedniideht that it. is/a subject which
The
changes in the
will be
cuss
Auto Production
Business Failures^-
•
government to
economic
,
course
-
■
and
that the problem of preserv¬
order
to
attempt to
arrest
or
ing the fragile stability of exchange rates requires maintenance
modify
the exaggerated move¬
ments
of;
the
business
of foreign aid to protect our economy against the recurrence
cycle.
Whether over long periods of time
convulsions caused by exchange rate crisis as during die ;
governments "successfully
can
1930s. Terming this a cost of protectionism, whicb would be
achieve
this
objective
without
with us even in the absence-of military threat from abroad,
creating problems far greater than
the ones governments undertake
the insurance head pleads that the otherwise commendable
to solve is a; matter which only
efforts to cut Federal spending not affect our export dollars.
L
the years and experience will ade¬
He observer: (1) our surplus trade account is probably the
quately test. But any government
largest of any country which our modest reduction of trade - - whichasserts that it is not a
public responsibility to try to pre¬
impediments has not lessened; (2) conservatives must face
sent the appearance of wide-scale
today's realities in order to influence government economic *■■■', «
unemployment will shortly lose
intervention; and (3) that despite claims of loss of friend-the enthusiasm and the confidence
of its supporters. The problem is
ship, this policy strengthens the economies of NATO countries, r
.
Commodity Price Index
attempt to adjust his mind
its', image in the general
view held by many people that it
Mr. Douglas forthrightly asserts
.
Carloadings
Retail Trade
State of Trade
-
finds
Director and Ambassador to
Great Britain
^
!. Electric Output.
'
By LEWIS W. DOUGLAS*
;
Steel Production
/^YY-;Y/ The
Constitution. YV-
will not be sub¬
stantially
influenced
and
his¬
torically has not been much af¬
fected
by a fluctuation in the
value of these currencies against
our own dollar, despite the large
trading account we enjoy with
Canada. Sterling, on
the other
hand, which enjoys at the moment
a tenuous strength, and in which
more
than 50% of the total inter-
Continued
on
page
101
In the automotive
troubles
industry the past week, Chrysler Corp. labor
stopped the
industry from reaching
high, "Ward's Automotive Reports" noted
on
a
1958
production
Friday last.
The statistical publication estimated the past week's
put at 142,609 units.
car
out¬
Normal Chrysler operations would liave sent
the total past 150,000, "Ward's"
indicated, which would "better the
present 1958 high of 147,361 set two weeks ago.
According to the agency, 36,200 United States and Canadian
employees of Chrysler
halts
are
idle because of strikes and production
stemming from strikes.
Only corporation assembly plants
working five days the past week were Imperial and Dodge Truck
in Detroit.
In
contrast
„
to
;
activity, General Motors,
Chrysler's subdued
.
Continued
on page
97
Volume
Number 5804
188
.
,
Chronicle
The Commercial and Financial
.
A.T. & T. Announces
3-for-1 Stock
t
]
Split
The board of directors of Amer¬
ican
Telephone and Telegraph Co.
By A. WILFRED MAY
initiated action Dec. 17 to split the;
stock of the company on a
three-,
for-one basis.. The proposed,stock;
split will be submitted to the
share
for vote
owners
at the
;
an-1
nual
meeting to be held on April;
1959. It is expected that the
15,
additional
shares
resulting
SILVER LINING
,
.
York newspapers' i strike
troubles entail at least one consolation. The general obliteration
of their publication/of daily- stock market quotations Jhas been
serving to further the indoctrination of the investing community
in true investment attitude.
*
^
^
r
Surely avid eying > of'.; the stock
table,
this
To
from
the split will be distributed about:
current New
the
column,
•
June
1, 1959, and that the first,
quarterly . dividend payment. on
the split shares will be made in
July 1959 at the annual rate of
$3.30 per share.^ v;
;
;
J ci
r The board believes that the pro-;
f
ESBfif
.
.
14
,
.
g
Itartonatp &anta Clau* ant
for, the
It will
large
imagination, Santa Claus
and not
the
be only a
may
flesh-and-blood personage.
a
with much
have never been blessed
who
people
some
commercialized myth
But who will deny that
jolly old gentleman is one of the most
delightful personalities
conceived in the minds and hearts of
children, little and big!
ever
is
is
that
there
witness to
not
that Santa's
the fact
mystical presence and kindly actions have never
seared the soul
•
bestowed his jollity and good-
single child and that Santa has
a
in the breast of every Mother,
ness
Father and Child who would
1
5Vi-V;'N'"-
;
mysteries
imagination to penetrate the
It takes
oi * nature, the
earth.
and the innermost secrets of the
skies, the constellations
which has built empires and nations,
£<■ and implanted the spirit of freedom in our own
States of America.
'
to the devine
spirit of
is
it
And
created the great
It is imagination which has
been
imagination
through
that
man
has
continue.
explored the
secrets which have made
Imagination
possible the wonders of modern mechanical progress.
in great part for man's
V most notable achievements in all departments of life.
For without
imagination—fairy tales, dreams, romance, love,
instincts—this old drab and prosaic world
wedded bliss and poetic
had,
of fairy tales, make
love
.
imagination is
is
there
then
children
to
Santas
nothing
these
believe and Christmas sentimentalities.
of
positive force and inspiration in our lives,
more
real and vital in the lives of little
Fathers and Mothers who
loving
their beloved
all
ones
year
effect
Of
are
veritable
Blyth & Co.
now
charge of sales in the
Blyth & Co., Inc., it
by the investment
headquarters in the Chicago of¬
fice, 135 South La Salle Street. '
Mr. Mather started with Blyth
in 1937 and remained with the
firm until 1940.
He returned to
-
in 1953 and was named
Sales Manager in Chicago in Jan¬
Blyth
1955.
York.
U.
the
1947-53
Mr.
counselors,
investment
New
in
partner
securities
a
with Carl D. Pettit &
Co.,
He
S.
in
two years
during World
training in accountancy,
■
.
.
'
^
Formerly
in
recent
a
years
journalist and economist for
a
British banks, and
and top-level management
in a fortunate position to survey the
business economist
consultant, Peter Drucker is
II.
War
briefing available in a new volume, A Primer
Non-Statisticians, by Abraham N. Frantzblau;
professor and attended Pace Institute
and who helped his fellow medical
students over their difficulties with statistics while he was acquir¬
ing his M. D., Dr. Frantzblau is an ideal individual to write such
a statistics primer.
"
r '
jv:
v
In any event, the
end product embodied in this volume
constitutes a most valuable filling of the bill for which it is
intended. The uninitiated will get to understand what a formula
produces, rather than how to use a formula to make it produce.
Each formula used is clearly and carefully analyzed; and it is
explained why a particular one is used. A separate section of
"Questions and Answers" at the close of each chapter is helpful
in permitting the reader to try, his pwn hand at the material.
And there is a very healthy chapter embodying "suggestions for
further reading" in mathematics and statistics.
:
Fortunate is it that this void has been met by one of Dr.
Frantzblau's versatile background and capacity for clarification.
/
y. ' /'•
''' ''
BULL ON OUR CIVILIZATION
spent
Navy
for
.
He will make his
from
the expert
filled by the
Statistics
for
announced
and
and act on the reports of
aspired to be a mathematics
Midwest for
was
sta^ij^^ijidstfare.': written;for the
those who makCthe studies, sur¬
Harcourt, Brace, New York;
CHICAGO, 111.—Morris Mather,
Jr. has been elected Vice-Presi¬
dealers,
on
150 pp., $3.50. A psychiatrist, he is
presently Dean of the School of Education, Hebrew Union CollegeJewish Institute of Religion in New York City. As one who once
Morris Mather Jr.
1940-47 he was
books'
many
statisticians, who require a grasp of its fundamentals, including
terminology, and the ability to appraise the experts' findings.
,
This void in the statistical-consumer's "primary" education
of
in Morris Mather & Co.,
the
producers of statistics; that is,
is
From
stock market community of
industry, with its advertising associates
Hooper ratings. ,for so..jp&py majqr decisions
statistics, those who must read
essential.
banking firm.
17th
and experiments—for the technically-equipped professionals.
But there is a real dearth of literature suited ltd*:the consumers of
programs,
in
: V;///
veys,
and
large
;
statistics has come since its
to the television
dependent on
on
important cona
broader
market for the company's stock is
destroy our children's
Claus, and there is nothing more real than
Santa
than
millions
the
a
course,
'business f:: conditions
throughout
'the country. '; ■ /".'^
If the company is to continue
Mather
If
•
beneficial
a
long way the use of
sundry, now ranging from the
and
corpora¬
■
uary
would be commonplace indeed. So let us not
*'
owned
a
Century beginning in its modern form! With its start ascribed to
the importuning of Galileo by Italian gamblers to study the proba¬
bilities in throwing dice, their use is constantly fanning out to all
thousands of people and
many
has
is
truthfully be said to be responsible
What
are
privately
.
FEET-WETTING IN STATISTICS
through the
It has furnished employment
tion.
the numerous speculative
,y,
'
than has been spent by any
other
May
.
,
.
Expenditures of
expected to
This : is
considerably
magnitude
dent
can
raised
along with
ment
attributes in the current bull market, is indicated by the eight-point net rise of the Dow
Jones Average midst the ten-day absence of most newspaper
market quotations here.
vy
-7,' /
7y
Wiitred
a.
sale of securities.
V.-P. of
poesy.
and wrested from nature the
unknown
|PS||PPPPP|P^P
telephone service in our ex¬
panding economy.
For the past
three years the
Bell System has spent $2,000,000,000 or more per year for new
construction.
The maior part of
given voice
written the great' plays and operas, and
paintings,
.
beloved United
in competing for the
of equity capital
for
"struction
Yes, it is man's imagination
bought it: surely, that severe mental anguish
from watching an issue rise after" you have
sold
to be avoided.
V
Incidentally, the presence of some invest-
ito meet the nation's requirements
to
just make believe?
company's stock.;
amounts
more
*. of
of the intriguing stock table to a once-a-week
maximum. In any event, there is no reason
to follow
an
issue's price .after you have
more
that will be heeded in the future
this
•
com¬
strengthen the position of
this has
Who
;
.
investors and therefore widen the
the company
To
.
posed action will make the
pany's shares attractive to
market
#ob's Cfnlbren
.
other than for the purpose of forming a buying
or selling decision concerning an individual
issue, is wholly inconsistent with, constructive
"long-/term value-seeking investment policy,
Thus, in advising on how to read' the financial
news, we have suggested confining the reading
Continued
on page
Lattrell Maclin To Be
round.
Paine Webber Partner
Anyone, who makes
smile,
■i
a
kiss,
a caress
kindness with
fact
as
well
as
a
one
of love,
of God's children happier with a
or
who shares friendship and human
distressed and deserving stranger, is a Santa in
in fancy.
...
On
be
Jan.
Luttrell Maclin will
1
partnership
to
admitted
in
Paine, Webber, Jackson & Curtis,
25 Broad Street, New York City,
members of the New York Stock
Exchange
other leading ex¬
and
changes.
To
rich and
real,
true and
memorable
forbid
poor,
young
and old, who
are
imbued with the
Spirit, the visionary Santa Claus of our dreams is as
Christmas
personal
words:
them
as
was
"Suffer little
Jesus,
when He
children to
come
uttered these
unto me;
and
not, for of such is the Kingdom of Heaven."
A. T. Matthews With
Laidlaw in Montreal
MONTREAL, Canada—Allan T.
Matthews has been appointed As¬
sistant
Manager
of
office
May each of
us,
at this Christmastide be a
distraught, needy
or
neglected soul of
befriending
one
our
Santa Claus to
some
acquaintance and by
Mr.
Matthews was for
with The Bank of Nova Scotia
"
1
"
.
•
* Member of The "Chronicle's" Editorial Department.
BOSTON,
has
Graham
&
Street.
•
Marketing Department
Merrill
Chronicle)
Mass.—Joseph
C.
joined the staff of
King, Inc., 16 Court
Kiernan
•
in
;Joins Graham & King
(Special to The Financial
„
Ci&H
12 years
Canada and New York.
of God's little children!
ALEXANDER WILSON*
of the Montreal
& Co., Royal
Laidlaw
Bank Building.
Lynch, Pierce, Fenner & Smith!
NEW YORK 5, N. Y.
70 PINE STREET
Offices in 112 Cities 4
8
6
(2522)
The Commercial and Financial Chronicle
time
Where Are Our Greatest Foreign
Investment Opportunities?
favorable for domestic investment, it will
Concludes "it will require
...
over¬
is
of
amount
of all the
I
more
reflected
that
question
a
on
my
which
a
com¬
us
Investment
where
go
the
to be found.
field
who
My first in¬
tion,
ing
reac-
amount of
data
have
only
As
you
have
r
official
recommends
guide
been
!v
elo-
•
.
three
our
broad; objectives that should
national policies.
" -""J
.
v
...........
,
well as I, that it is capable of great
diversification^ expansion, and
productivity,1-and that it
vide: the
jobs for
population.
can
pro-f
increasing
an
know
You
that
it
is
progressive in its technology, andrich in its ingenuity; These facul-;
ties spell
storehouses1of untapped7its stability .
of which no inventory- while expand- 7*.
has
as
yet been takem ^Even -ing to produce *:
rudimentary knowledge about? thesufficient r e- -
they
are
of growth. 7* .7
assurance
resources
mineral
and
ments
ulation, avvast
develop|
affecting investment in
raw
work
United
States
proposed
.•■".'O
cient goal for the times in which
-•
It must
live.
be equated
into
values,' if
;it is really to constitute achieve¬
ment.
We must, first of all, re¬
we
n.fitiorial -det^nse' co
material production which will bd
worth
watching.
Last :
stantial expansion of the
?
.->.'^7,/
But it: isn't enough that we en¬
shrine economic growth as an end
in itself.
Alone, it is not a suffi¬
.
at least two
are
Economic ' V-'
on
■7.';,.,"j; Growth
other
,
There
No Monopoly
„•
resources^ of vtsources for themany
under-developed : countries < n *ee d's" t> f7 a
is lacking.
'
7' growing pop-
in¬
it.
about
the
- -
Europe
while
hand
one
a
rn-
year^the -P^xy capktal.' *
a
subf f i n v est m e n't 7 .
~
broader
structure
member that
technical i.and- plartt-ek-,
H.
Stans
we
of
have
no
monop¬
of the main activities to be underf
ban ization,
oly on economic growth, and that
there are those who see in the
taken
before the results
is
the added demands created by
the needs of the free world com-
Soviet economy, strong evidence
that; in relative terms its rate; of
.niunity. For,these qi;e the. critical
tasks we have set ourselves to per-
growth exceeds our own. And so
we are warned, quite properly, of
the dangers of * the, Russian ecb-
resulting
Then, a few days ago I
the newspapers that sev¬
speakers at the recent Na¬
tional Foreign Trade Convention
had stated that the great new field
for expansion of U. S. business
abroad lies in setting up produc¬
tion facilities in foreign nations,
particularly in the under-devel¬
years."
eral
oped countries.
what is
"under-developed"
the
context
of
United
itself
States
is
of data will take
a
available.
are
last
eight years, Ameri¬
investing abroad
at an increasingly rapid pace. In
1957
they made foreign invest¬
ment abroad resulting in a net
outflow of dollars amounting do
nearly $4.0 billion, a figure sub¬
stantially greater than the nonmilitary part of the U. S, Foreign
are
have
U.
now
U.
investments
overseas
*
.
private
investors
have
number of distinct
a
pref¬
in recent years. Since the
of the World War II Ameri¬
erences
end
of the United
ural
of surveys
of
resources
veloped
of the hat-
the
countries
to
world,
takc^im, largely through gbvbrnmen-
course
but they.- could; tal action scaled , to preserve the. nomic offensive^..
,
great deal of' valuable -incentives for a vigorous free en- ^
Here we seei on: display the l\ya
prepare,
develop
basic
under-de-
of -the
These surveys will of
time
Maurice
expanded program vand
by this
series
a
ion,%ury
Nations.^One
a
,
information
maining untapped
about -the ^re-
world.
U.
r or
freedom
of
choice
.
i
tt,
Luroiies Future
contrasting..'economic-;., systems*!01
for those in the 20th Century. Bach.has sprung
^■::;7.,; ^other;vlands.^_7,;- 77V''7 ' :,77;
'£'[■;*. ffOm a v social premise-which,;is
;
,
'tbi'prise system at home and equal
of, the
resources
Opportunities
h.. Manufacturers
man,
century ago, Cardinal Newin his essays on "The Idea of
repugnant to , the other.- Each
identifies itself with dramatically
v^ayUniversity,", wrote of-,, the -kind /opposed; ^/theories
approaching $40 billion
S.
shown
been
S.
in value.
my
subject-question, because oppor¬
tunity implies assumedly a chance
to make profits.
It may well be
picture. Analyzing the
mass
In the
cans
Aid.
I also began to wonder
the
as¬
in
with
full year so that it will be in 1960
Philip Cortney
read in
that
still
we
.
-
investments in order to present a
15
in
direct
our
,
under
make it—in
can
1960; foresees sharp
year
quently decrying it with the other. Warning that the world
is watching how we, in our economy, deal with our problems,
yv
recently:
developed • countries ^how, ourf eco-;
are
still the great storehouses of 7 ndmic system 7
untapped resources. In many cases ;; pan maintain <■,
The
the President
foster inflation
In the setting of the School of
Commerce, Accounts, and Finance,
it is especially appropriate that we
consider; the urgent questions of
on
companies
oil
as
some it will be too tight and to
tight enough; and asks why do politicians, business
and labor leaders
7
;
budget
a
existing laws—for fiscal
•;/ :7.:. v/v
not going
Europe
even though
time
world-wide
least for the
countries
that
are;,. ::
know, the Commerce Depart¬
ment is now collecting data from
every American firm with foreign
op¬
by
II
may
portunities are
in Europe, at
meant
War
complete
the
to
World
After
burst of invest¬
foreign* securities which
to grief.
It was only after
that
new
was'to
y:
"O £
10
abroad
very substantial proportions.
Large scale foreign investing is so
had,
next
brief look at
sume
cumulat^d
knowledge of
the subject I
greatest
I.
....
probably
speaking
oil
finding
investments abroad began to
ac-
course
War
was a
to;
tight
as
others not
inrthis" 7■
coinparing Western 7 r
is
spend
some
in
World
whatever,
a
has
Budget
criticism about it because to
>
Europe with the under-developed
Since
investments
sort
materials,
of. the
budget director pleads for sanity in government finances
essential way of guarding our economy.
Mr. Stans
the face of
The investor
is
World
came
to
due
this
raw
much
first have
War I there
stinctive
of
Budget
STANS*
one
promises
.
.
into this country is the output of>> :. •
branches or subs id ia-' *
ries.
1
.."V.
■
,
countries
the American
the
materials imported,
raw
to
Investing
as
Approximately half
intelligence than
Foreign
Let
since
swer.
a
S.
,,
substantialfor
H.
Director of the Bureau
U. S.
American
World War I
sounded
simple may well require
plicated an¬
s
U.
I realized
more
investment
a
MAURICE
By
^
:
materials
raw
barbarians."
more
in
utiU-\
'
overseas
U. S. market.
also attract foreign
to stave off the flux of the
is
to
or
ores.
already producing
relatively
The
subject matter the
materials
raw
American
i
political and economic
-This
needs.
ize lower grade
investment in under-developed countries.
advisability of exploiting the world's remaining un¬
tapped resources. Mr. Cortney points out impediments to pri¬
vate saving and investment in under-developed nations, in¬
cluding imperfect maintenance of law and order, political
instability, unsettled monetary conditions, extended family
technique, and systems of land tenure. Maintains when the
political, economic and social environment of a country is
dollars
for
This Growing Economy
And the Federal
the
material
raw
a
Thursday, December 18, 1958'
.
be-,
are
1900
this country is a net
about 10% of our
material
conserve
motivating
capital.
now
raw
In
was
importer
Stresses
.
resources
spite of the rapid growth of vari¬
ous
synthetics
and
efforts
to
President, Coty, Inc.
Economist-industrialist cites both
tones
States
exporter,
Chairman, U. S. Council of International Chamber of Commerce;
<
own
depleted.
United
By PHILIP CORTNEY*
"
our
coming
..
of ,economics.
y^rs iof ' institution^we' see rfiere today; OneVis b^
philosophy,
Europe may well offer exceptional lHe said: "Anfassembiage of, learn- and -blasters 4hat jt will bury the
investment o p p o 1* t u n i t i e s to 'bd men, zealous for their : own other.UBut,at^, differentas the
In
the
next
American
little
10
to
-.
lS
.
manufacturers.
than
more
.Within
sciences, .and rivals of each other,
.bropght, ; by : familiar inter-
decade the Eu- *are
a
Economic Community will7course
Six indus- Actual
Soviet and the free-enterprise
systems are, they have one thing
and for the .sake,-of intel- in common: growth.
,
peace, to- adjust together
In the /.Soviet state,
'"I
the imcomthe claims and relations of their mediate source of strength is rethey held controlling interest; that
potentiality for further economic
bined
population equal to^ouiis ^cspective^vSubjects ; .of investiga- pressive , control, ; This
is to say direct investment rather
control
growth and profitable investment.
and
a
combined
than
gross /national^.tipn. Thby learn to respect, to conproduces a unification of three
the
portfolio
investment
Moreover, daily events do not
product about one-third of .our 'fsiilt, to aid each other. Thus is strategies,, the: political, the ideowhich was popular in the 1920s.
allow us to forget that investment
Direct investment in branches and own are grouping into a common created a • pure and~ clear atmos- logical, and the economic. All are
in under-developed countries has
subsidiaries last year was three- market. They have a skilled and phere of thought, which the stu- manipulated to cause and mainpolitical overtones. Some people,
labor force and re- dent also breathes. ... He profits tain instability in the world outquarters of our total private in¬ disciplined
especially those * connected with
search capacity in some
vestment.
respeets.v by an intellectual tradition. . . . side of the Soviet bloc. The poof the most
one
have
cans
"under-developed"
countries in the world in terms of
speak about invest¬
under-developed countries
patriotism in the cold
been
primarily
in
investing
affiliates
abroad
which
in
in terms of
against communism.
war
Yet
others, for instance Nehru
himself, contend that more impor¬
tant than the division of the world
into
communist
and
non-com¬
munist countries is the distinction
between developed and under-de¬
veloped countries. We
the
for
clamor
of
are
told that
rising expectation
greater share of the world's
a
goods by the awakened
Asia and Africa is
most of the
tries
do
so
masses
under-developed
not want
of
pressing that
to
go
coun¬
through
the
same gradual process of eco¬
nomic growth as did Great Britain
and
the
United
States
and
other
countries.
They wish to obtain, by
economic planning and authori¬
tarian methods, if necessary, as
quickly
of
as
possible
a
wide
To add to
being
told
China
is
our
communistic methods and that
best
chance
to
that
industrialized by
prove
to
the
our
yet
attractive
most
cans
♦An address by Mr.
.
nomic
almost
half
for
of
Ameri¬
have
We
our
foreign
investments in this line of activity.
The next two
judged
by
vestment
areas
size
of
in
importance
in¬
manufacturing,
are
American
ac¬
counting for about one-third, and
public
utilities
with
about
one-
tenth.
On the basis of these facts
conclusions
Americans
have
some
follow.
So
preferred to
invest closer to home rather than
farther away.
This is
perfectly
natural.
One of the main
cally
for
abroad
is
reasons
Americans
histori¬
to
invest
to
develop natural
particularly mineral
and
most
re¬
ing
particularly oil.
raw
materials
are
grow¬
population expands
living standards rise. At the
as
.superior to
There
for
in
invest
and
same
1:- He apprehends the great outlines
knowledge, the ^ principles on
the which it ' rests, the scale of its
"
in
to
:
trade, in
without
tariffs
;
incentive
Community parts,
take advantage ^Teat
to
freedom
market
from
to
or
*
,
.
'
litical strategy is to perpetuate
the war of nerves, and to neutralize throughL fear the great
its lights and its'Shades, its, population masses of Asia, Africa,
P°ir»ts and its little, as he and the East: The ideological
strategy is to - offer hope to the
underprivileged — the
familiaf
re-
"
otherwise cannot apprehend them,
•
•
A habit of mind is formed
which lasts through life, of Which
promise of pie in the sky.
the attributes
this
hindrance
quantitative
strictions. -'
,
a
V
real
a
Economic
order
the
big
with
own.
be
Americans
European
of
our
will
the
-
are
freedom, equi-
economic
is
strategy
And
ulti4
productive
that the EEC will bring a greater and wisdom."
^ ; - "
machine which, free from profit^
degree of free competitive enterTild Wea of a university has not making and risk-taking features;
prise to Western Europe than it changed, but the society that the can undersell the high-cost indushas ever known. On the one
hand, university serves is changing. We tries of the West and capture the
the Treaty
of Rome establishes are caught up. in a turbulence that markets of the world, thus setting
an
antitrust
system
in
Europe has few parallels in our short his- the stage for decline and disinwhich will break down the
stifling toi'y as a nation.; We cannot deal tegration of the Western economy
cartel mentality which has
pre- with it, nor. even survive it, if we
as we know it.
~.;V
I think that it is almost certain ,;
vailed
the
there.
drag
should
On
of
also
the
crumble.
prise given
other hand
government
controls
Free
enter-
continent in which
a
operate will prove to
dynamic /and productive
kept in check.
' *
be
tableness,
calmness;* moderation, mately
do n°t first try to understand it
—with "equitableness, calmness,
moderation, and wisdom." ^
I
have
chosen to
discuss
"This
Growing
Economy," but I will
to
be take that subject more as a point
:
of departure than as a theme.
I
There are some grave uncer- am deliberately
going rfo turn it
tainties, of course. The present into a plea for-sanity: in governstalemate in the negotiations to ment finances, on the ground that
create a free trade area could lead a
contrary course will destroy the
to the most serious
problems for promises of our economy.
Americans and Europeans alike.
There is no need to reassure you
The
prospect
re¬
is perfectly obvious that the
incentive for this type of
foreign
investment can only increase. Our
needs for
countries
to
It
en¬
Cortney before the
Club, Detroit, Mich.,
field
investing abroad.
made
sources
*Vtr"f
of the world.
Hemisphere. Western
Europe is the next most popular
place to invest with approximately
15% going there. Mineral extrac¬
tion, particularly oil, has been the
ority of. freedom is to make India
terprise system.
unified economy.
a
area
areas
Western
sources,
Ok. I, 1958,
preferred
Over two-thirds of all private for¬
eign investment has gone into the
uncommitted countries the superi¬
the show-window of the free
have
Hemisphere, whether
ica, to all other
important
we are
insistence
investors
Canada or the relatively less de¬
veloped countries of Latin Amer¬
far
perplexity,
with
being
Our
the Western
basis
heavy industry.
be
trialized
government,
ment in
ropean
cleavage
of
a
Europe
in
that I think a
way
to
surmount
CUltieS.
a
„
i.
-
Another
leal
the
•
is
too
economic
so
grave
must be found
present
diffi-.
,
•
pioblem. is the failure
Continued
on
page
92;
resources
enterprise'system.'
of
our
free
You know, as
Director, of
a
central contest of our century. We
dare not become
ourselves
the
that
so
absorbed with
we
magnitude
fail
of
the
to
that is openly being hurled
us*~
realize
challenge
against
/
\
Still, while we must respect the
growth of the Soviet economy, we
should also be objective ..about lb
Soviet giowth is IesjS
ra^e
imposing whan we remember that
a
long-term rate.
It in-
eludes,the recovery trom a low,
the Bureau
of
the
Budget, at the 8th Annual Dean's Homecoining Day -at New'York University's
**£ n1.CyS^,
employ
This is what we have to deal
with. It won't do to become so
preoccupied with internal issues
and problems that we forget the
it is not
—
,iv7Aerf7ne<i^ abby.^7
Assistant
.
,
^.jle ^asjc
to
devastated
Soviet
wartime
Union
started
Continued
basis.
at
on
a
The
lower
page
95
Volume 188
Number 5864
.
.
The Commercial and. Financial Chronicle
.
2'92i?-?T
thq N.,
•
y
on
.
Of Airline Equities
•>
By DR. IRA U. COBLEIGH
"J; '.V
"*
- -
sh5res'
now
Y-S. E., and
years. A powerful elemeat
growth^ exists in the air trans-*
a? iwajor newrouteaand. has dis- port industry. All th^t is required
played a 20 year Apw margin of is: to start translating that grdWfb
recently /been assigned, important
-en joyed
6,6%.
^management, and was .on
the way, to an improved 1958 till
hit by a strike now in its fourth
.week—andJust at a time of year
; when the'winter Florida business
■ begins to roar. In the 20 years ended
scums
^
,
A
ground observer's view of air transport tines in general and
position>o£ certain
,
.
stocks
common
m
pnrticntor^
a* book value of
C» ^1, 1957, Eastern, averaged ahd paid
r „
jri^sharema^^
;
V--^ J■heip,jof; e^rsb.^
.withihe^Dow-
0^ha^a^an
more
9.5»;
^qxy£&i^brie?
there's ^a/^vasi'-.;
•"
''"hoW^er^ ^a^ —fahcy
■
prfemium;f6r
cOrhbmg^bVer"^
Jho Jist^byv *
brokefs,' f-wwadN
showed
n
Lines
and
invited
.airline
join
to
••
n ei-,—
a
III
AI dlwlle
year.
above
four
are
«
•■
fi0M$I0f
fh#v
;
For
those
of
roeimiatinn
the
generally
equities ii,
resignation
Crawford
L
l
J
nf
of
William
T
William
chairman
as
T.
the
of
board was accepted effective! Jan.
a
1969. ; He will continue as a
j• J" J.*-;:v '
J,
speculative turn of mirid a
study of highly leveraged Capital
Airlines at 18% and Continental
more
and
t.
director.
the
.
Whitney Stone, formerly presi¬
dent, was elected chairman of the
^imitte^; diswrttipuatme:
Air L,vnes snawea ine< Airlines at 6% might be worth board and chief. executive, officer,
found drip ^discburit." But; this ini:
improvement. in^ earnings while. Both of these "have inters and Richard N. Benjamin was
convertible
crease ^as
(and is)- wbefdlly in-" during the»first half oi ,1958, in- e s tin g convertible debentures elected
president and a
available
>dequatfi,"" Neajy: all th^share net from ;88
1937 to
for
$1.16
applied' for substantial fur- 111 }
ther- -increases' which": should., be spondmg
have
v'isbrs>"';; to: '
1 ect ^wbrth'y-^
^pelculatiyefe
N^icies
it p-^t'b?
Air
earnings
.
'] iy$ts land^ac^f
"•
Oiiitea
thw'v
of
i:
nower
earnini?
net"
-
1955> high oi
today's market.
manage-
superior
:t>rMr*n
^
,
$30a share
over
30c dividend this
,
The
gJthe
hitlin
a
lm
^reases-In^Febniary.>fh^
i
mi.
four years Chas been between 27
;^nbrtnrif
••-■-*■•
'*
a.into
WeiC Considerably less exciting.,
,
J^mg^^trend jn
been mentioned
,
enjoyed
fa*
ranee
American Motors and Lorillard, to
pnacciisitpined and ^rarefied alti- has
line
stantially higher this year. Delta
cbmmon sells at around 22, has
,
the current
The
of
rapid expansion in gross revenues, equities
may be
Delta total revenues in 1957 were, the bull market
$79 million. They should be sub-
•••*.
Enterprise Economist"
Jj ^-:"1'
7;
*s De^«- J-t is well managed, has three
sell-
mguat
J*e d.lvyeSd Is $1Km
cash and 2 % inu
stocky Eastern has
an
efficient cost con-
;;
-:
(2523)
six
months
the
corre-
this
at
substantial
discount
prices.
year.
Airline
.
not
the
director,
effective January 1,1959. Mr.
Benjamin had been president-of
Stone & Webster Service Corpor¬
ation.
' '"
' !f; '
• ' _//
both
.
At
ana
owf$\
vance:s; mot prt^^^
meeting of the board of di-
attraction" for speculators
°ver ..the. hurdle of however, • since they have (with
new planes, it ^jopld the exception of Pan- American>
command something not glared in the forward motion
o.llce 1 ^
ogn ftion of rising operatingicdSts>
haveriot i got- >
a
^^ncmg its
!^c ^
^
)
v
a
; but to provide a abetter4 Comings
ru
board of, the' Service Corporation,
ing pad. Among these more' sod- base, for the finahemgrpf the^Pew 'Wter_( than, ^ae. current snare of the market in recent months, and Peter J.JRempe, who had^been
den securities in today's
^market" armadabfjets.' e ^
Vv:f 4Qi?,e °
'
e
and possess many underlyir# fac- senior vice president, was elected
fen very far
offthe laurich-
are
Ira
j
U.
Cotlleigh
•
the; air transport shared.
Just whv
;.
i
this pmimQhA.iWho™
tterformed^so D(Sdv^n^he
Tr
months has been the subject of
>i
humerous analytical studies, with
a
_
Your - correspondent^ roder into
New York today on a Long Island
^ J, ^
; . forc?
an
imnortant rise
v Among
tne most promising tors .suggesting an .important rise
r-r- coach that was,' at the very lines, in a long range conjecture, in earning power within the next
run
revealing ihe following drawbacks1 of the industry:
<1) Laminated • competition
on
major routes,'abetted by overlap-1
vintage items like that. There
Interest
nr.
^ ^ DC J vthen DC .6 s, and
Si ^ Constellations,nturbo^props
J"d ™blg
costs
$5, million. It 3 ,a marvellous ear-,
5,iel; 'n speed—2 .2 hours New
York ?? Houston—and in passeh-
Decemt&r 17,1958
$8,755,000
...
Town of
new and
.
'
'
prospect.-Not only
Legal Investment for S&vtngr Banks and Trust Funds tit New
and for Savings Banks in Massachusetts
;
one
of the most serious has been the
due to
route
allocations made- to
'
age sets
;
: :
miiiion
their
passengers
importance
a
year 4-
in "our
.
ta^ntat
realized
a,
old
m
quite
•
°? 5?0<^
equipment.
(Omfhis Ipomt the Report
mended
government
^
recom-
Joans
$120,000
1975
3.30
115,000
1976
@100
3.55%
2.50
155,000
1969
3.35
100,000
1977
3.55
2.70
150*000
1970
3.40
55,000
1978-79
3:60
2.85
145,000- -1971
3.45
55,000
1980
3.65
1964
3.00
140,000
1972. 3.45
50,000
1981
3.65
1965
3.10
135,000
1973 @100
50,000
1982-83
3.70
1966
3.15
125,000 <
1974 @100
50,000
1984-88
3.75
770,000
1961
1962
760,000
1963
805,000
815,000
810,000'
:
'
%
;
f
:
1
:
'
■
'
T.80%
(Accrued interest to be added)
;
*
<
The above Bonds
are
'
■
offered when, as arnf if issued and received by us and subject to prior sale
by Messrs. Hawkins, Delafield & Wood, Attorneys, New York, IV.Y*
and approval of legality
Amenctin ^Airlines,'has" a;num^
ber of elemerits^f current attrac:
It "'is'", the '^jargeist 'Cdoin^tic"'
/ J11?/" airline, and the. first brie t» operate
coimnonly
prior, years, on the sale
gmns,
a?
mp, nl !"
3.25%
780,000
,
espe*
planes restricted the
1967
1968
2.10
♦
which^did little to generate
22??
ket for
PRICES
155,000
1960
overall '
subsidies, and possibly govern- rather to touch upon three br four' ; ;
ment financing might be necescompahi^f where, y^rhai?sA: share
sary to complete the payments on price recoveries appear more imv*:
$2.8 billion in new equipment medialcly^in1-prospect.
/V.
••• ''■*• ^;
shares,
-
$685,000
1959
715,000
.
air
.
rate or amount.
$710,000
public. It;was not a bullish docu- some reference to particular comment. It implied that, in a numpanies sgems now iri order. There
ber of respects, the. airline indus- are 12' domestic trunk lines to '
fey was on an unsound basis, and choose- fromA^We;.wpnt .pretend
it mentioned that a resumption to
cover
tfteni all, preferring
toxtou$iasm_ for
municipal
■
,
ordered.
as to
AMOUNT DUE EAGir YEAR AND YIELDS! OR
and,
Them in September, the report transportation picture.
•
Special * After1;- the ? foregoing swift apAssistant fen* Aviation was made praisal of the' airline industry,
AH of
be issued for Public Parking, Water District, Park and other
<
of President Eisenhower's
1
York State
in.
with mairiy railways curtailing or
abandoning passenger service,'the
airlines 'and each day increasing
hfeve
.
long range jetjransports. It has
the;" §tfbngest <.of;' airline
balance sheets'.^ It "earned ' $1.31
per share on its•common, last year
(including 23c"'1 .in^hon-recurrihg
one
Bankers Trust Company
The Chase Manhattan Bank
C. J. Devine & Co.
0f
r
Confronted by such an arsenal dend. American Airline common
of arguments as to why air shares" sells arouri<i^24v to -yield /4.16%.
are now depressed, it would seem
1955-58 price*range was '-between
Salomon Bros. & Hutzler
Harris Trust and Savings
Francis L duPoni & Co.'
to brofit);'/aridrsiipuid- '^hqW^around
feiendly nations so that they could
^1^0 for '1956;This; is adequate f
buy our used transport planes.) coverage for tie present '$1 divi-
Bank
Roosevelt & Cross
Ladenburg; Thalmann & Co.
W. E. Hutton & Co.
Incorporated
Schoellkopf, Hutton & Pomeroy, Inc.
Coffin & Burr
Bacon, Stevenson & Co.
Incorporated
^
to require either; ignorance or 14 and 29.
7.' J '
J
audacity to come out in favor of ; Eastern Air Lines has had the
airline equities at'this juncture, finest,record of sustained
earnings
•Yet^that is-twhat
<*V in.
a
we
propose
qualified sort
of
to
of any domesticlineand
it'has
consistently 'maintainedv a strong
don't feel the fore- balance sheet ^position.5. It earned
going .negative'factors will pre- $3.21 per share in 1957 on its
because
we
_
way,
.
1
limitation
;
a«f J
should
^back' above., 65%, a quite
dramatic increase m the net profits of airlines would ensue.
SvmaVu UP
incl.
improvements^ in the opinion of Counsel will constitute valid and legally binding general oblik':; gations of the Town of Hempstead, N, Y., payable as to both principal diid: interest from ad
valorem taxes which may be levied on all* of the taxable real property-..therein,* without
'
f Taking a broader viewpoint, a
robustvair: transport:industry is a .'
national necessity: It transports 40
^
'
til! the rocket
These Bonds, to
/
snallerJln^^in^cdmpetRtori-twRih:
tfe>profitableiniy:of ribide^andV
larger lines.
By cJuly. 1958, however, the joad factor curve started
,
»
ment
Due March 1, 1959-88,
Principal and interest (March 1,1959 and semi-annually thereafter on September 1 and March 1)
payable in New York City at the Rankers Trust Company. Coupon bonds in denomination •
of $1,000 (except two bonds for $500 each), convertible into fully registered bonds.
*,
Among the foregoing items,
that, but j ets should prove to be
the most permanent
of all the
passenger load factor which has postwar transport models introdteelined from about 69.6% in 1951 duced. 1 Evenr supersbriic planeo
to probably around 58 % this year, would Offer but -relatively slight
Part of this was due to the reces- a d v a n t a g e s ovef p^esent jet
sion, part to delivery of larger speed#.' Sb the jets may well prove
planes (with more seats) arid part to be standard' -operating equip-
Purpose ®onds
Dated December 1,1958
higher plateau of earn-
ing power is in
*.
Hempstead, New York
3 ¥2% Various
J!e?, of Jets operates at substanftictors; (7).; costly strikes-isp^- H®11^ low^. pasts; than piston
dlally this year; (8) airport air- PUwes. and jets are expected te 1
lane congestion, and some highly
considerably longer. So once
publicized air disasters;^^ and^ (9) ' the problem of paying for all Uns
aggregate profits that this year new e("i'P"}e"t
•?een solved, a
;
Exempt from present Federal and
.
productivity; (6) declining load,
may be lower than in 1949.
also effective January 1
New York State Income Taxes
ping awards by the C. A. B.; (2)
Steadily rising costs of fuel, labor,
With but meager rate increases to ger_mile capacity. Because of Its
offset them;
(3)
necessity
0f ?P?ef ~ 9 hours New York-to
"keeping up with the Jonesra" in Lond°n-a single jet can inake-sd
the .acquisition of latest type of many .1?ns^}a,,?!jc rPu^ trips in
equipment; (4) problem of financ-' a year that it will actually convey.
ing all this* latest fashionable
—11 ■
Hying finery; (5) declining rate
?e A^6'1
^lereoyor, a
Of
nresident
,presiaent, aiso enecuve January i,
1959.
years old. Air lines can t
least»
consensus
,
J.HWilliston&Beane
Stern, Lauer & Co. *
John Small & Co., Inc.
.
Granbery, Marache & Co.
M. B. Yick &
Company
Courts & Co.
Tikiey & Company
Herbert J. Sims & Co., Inc.
Talmage & Co.
The Commercial and Financial Chronicle
(2524)
Federal National Mortgage
Childs &
G.
Dealer-Broker Investment
M.
—
—
C. F.
Samuel &
Co.,
Memorandum
Inc.—Memorandum—John
E.
Thursday, December 18,1958
.
.
Co., 1 Wall Street, New York 5, N. Y.
Giannini,
149
Association
.
COMING
EVENTS
Broadway, New York 6, N. Y.
Glidden Co.—Brief
analysis—du Pont, Homsey & Company, 31
9, Mass. Also in the same circular are
of Sparton Corporation, Central Vermont Public
Field
Investment
In
Milk Street, Boston
Recommendations & Literature
analyses
Service and Granite City
A. P. Green Fire Brick
It is understood that the firms mentioned will be pleased
to send interested
parties the following literatures
Steel.
Company
Jan. 16, 1959
—
Halliburton Oil Well Cementing Co.
Ellis &
L.
Discussing current expenditures on
Baird Atomic Inc., Tracerlab
and Pronto Uranium Mines Ltd.—Atomic Development Secu¬
Houston
rities
Howe
Atomic Letter No.
43
—
Inc.,
Thirtieth
1033
-
N.
Street,
W.,
View ^ Monthly investment letter — Burnham and
Company, 15 Broad Street. New York 5, N. Y. Also avail¬
able is current Foreign Letter.,
Federal and State Stock Original Issue and
Use
Options—Descriptive booklet—Filer, Schmidt &
Co., 120 Broadway* New York 5, N. Y.
Japanese Market—Review of current situation—Nomura Secu¬
Co., Ltd., 61 Broadway, New York 6, N. Y. Also in the
review are brief analyses of Asahi Breweries, Nippon
same
Memorandum
—
—
sociation 24th annual dinner at
the Southern Hotel.
Green,
—
April 1-3,1959 (San Antonio,Tex.)
Moreland, Brandenberger,
Texas
the Southwest Building, Houston
Hodo, Nikkatsu, and of the Japanese Nonferrous Metal In¬
dustry.
Yamaichi Securities
—
Company of New York, Inc., Ill Broadway, New York 7,
the Boca Raton Club.
—
York
Stores—Analysis—Reynolds & Co., 120 Broadway, New
5, N. Y. Also available is a memorandum on South
M. Roberts Named
Jersey Gas.
McLouth
Gov. of
Steel
17 Wall
Corp.—Memorandum—Kidder, Peabody & Co.,
Street, New York 5, N. Y.
Corp.—Analysis—Blair & Co., Incor¬
porated, 20 Broad Street, New York 5, N. Y. Also available
is an analysis of Standard Accident Insurance Company.
Office
Square, Boston 9, Mass.
Bache
Unilever N. V.—Card memorandum—New York Hanseatic Cor¬
yield and market performance over
National Quotation
4, N
/ "
Y.
a 19-year period —
Bureau, Inc., 46 Front Street, New York
f '
'
Chain Store Convertible
United Western Minerals Co.—Memorandum—James P.
Speer
Co., 2826 Central Avenue, Southeast, Albuquerque, N. Mex.
6%Debentures
Continued
from
I Public
5
page
non,
•'
.
Benefit
From
Consumer
Spending
—-Bulletin
on
Bigelow-Sanford Carpet, Roxbury Carpet and Hammond
Organ.—Bache & Co., 36 Wall Street, New York 5, N. Y.
Treasure Chest in the Growing West—Booklet describing in¬
dustrial opportunities of " the area served—Utah Power &
Light Co.,. Dept. K., Box 899, Salt Lake City 10, Utah.
*:'
»
■
'■<
«
*
American Can
Co.—Memorandum—Woodcock, Hess, Moyer &
Co., 123 South Broad Street, Philadelphia 9, Pa.
Co.—Memorandum—Hardy & Co., 30 Broad
Street, New York 4, N. Y. *
Atlantic Refining Company—Analysis—Schweickart &
Co., 29
Broadway, New York 6, N. Y,
Automatic
Canteen' Company of
America—Analysis—Glore,
Forgan & Co., 40 Wall Street, New York 5, N. Y.
Bulletin—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
,
—
.
Beech Nut Life Savers, Inc.—Memorandum—W.
CO., 14 Wall Street, New York 5, N. Y.
memorandum
Bird
&
Son
on
E.
Hutton &
Also available is
a
U. S. Lines Co.
New York 5, N. Y.
Broadway-Hale Stores, Inc. —'Report
Wall Street, New York
5, N. Y.
—
Blyth & Co., Inc., 14
Carpenter- Steel -Company
— Analysis —
Shearson, Hammill &
Co., 14 Wall Street,-New York 5, N. Y. Also available is a
report on General Bronze Corporation. -
Ceco Steel Co.
—
Memorandum
North St. Marys
—
yesterday (Dec. 17) by an under¬
writing group managed by Bache
American politico-economic scene.
This he has been doing pro¬
vocatively and stimulatingly in a series of past volumes, including
his quite epochal "End of Economic Man" back in 1939 and
"America's Next Twenty Years," first published in 1955. The latter
tome's optimistic view of things to come in America's next 20
years, Mr. Drucker now expands and accentuates in a new book,"
"Landmarks of Tomorrow"
(By Peter F. Drucker, Harper &
Brothers, New York; 270 pp., $4.50).
In this latest work he sketches
a
road
map
Muir Investment Corp., 101
Street, San Antonio 5, Texas.
Chemical
Com Exchange Bank—Memorandum—R. W. Pressprich & Co., 48 Wall Street, New York 5, N. Y. Also avail¬
are memoranda on Ruberoid Co.
and Sterling Drug Co.
Citizens Utilities
Company—Analysis—Walston & Co., Inc., 74
Wall Street, New Yok
5, N. Y;
able
Dana Corp.—Discussion in current issue of "Current
Comments
for Investors"—Francis I. du Pont &
Co., 1 Wall Street, New
5, N. Y. In the same issue is a brief analysis of Ferro
Corp. and a list of candidates for stock dividends or stock
splits.
Also available is the current issue of
"Market
York
V
'V
& Co.
•
The debentures are convertible
at
their
principal
into
amount
Class A common stock of the com¬
pany
unless
at anytime until maturity,
previously redeemed, at
prices of $11.50 per
of Class A stock prior to
conversion
share
to our succeeding
1964, $13.50 per share if
prior to Jan. 1, 1969,
thereafter, subject to
adjustment. /The debentures are
entitled to an annual sinking fund,
Jan.
in
1,
history, following on our post-eighteenth century "modern
age." In this optimistic preview, in a range even wider than
previously, he forecasts the adoption of a whole new approach to
living, which will result in replacing what he calls a haphazard
and chaotic past with efficient organization and control of our
converted
technical inventions.
retire
Maintaining that
which
modern
we
old view (of 20 years ago) of the world
"modern," no longer makes sense, Mr.
world," of whose new reality we still do not have any
;
;
'
,
.
?
these
areas
contains
discussion
a
of
the
new
to
effort through
Salomon
capacity
for
The
absolute
destruction,
for
his
introduction
expresses
the
first
time
in
$4,920,000 of New York,
& St. Louis RR 41/s.%
equipment trust certificates, (noncallable), maturing semi-annually
July 15, 1959 to Jan. 15, 1974, in¬
Chicago
our
clusive.
certificates
The
author
in
the hope
that his
the aim of conveying to the reader the shock
recognition of how obvious the recently unfamiliar new already
is, and how irrelevant "the familiar modern of yesterday" has
already become.
In this overall objective he succeeds — and
most stimulatingly!
of
Pointers" with "Tax Tips" and switch
suggestions, and brief
discussions of Textiles and H. L. Green Co.
•
and
Hutzler
&
Bros.
offered
•
book accomplishes
Equipment
associates yesterday (Dec. 17)
dependence on Western formulations. The third part is concerned
with the fact that both knowledge and power have gained the
civilization.
to
issue'
of the
Trust Ctfs. Offered
organize men of knowledge and high skill for joint
responsible judgment. The second part deals with
the coming of Educated Society, the emergence of Economic
Development; the decline in the government's and nation-state's
ability to govern; and the alleged collapse of the ^"East," that is, of
-non-Western
culture and civilization,
and society's increased
power
45%
Nickel Plate
.
of
sufficient
1965,
least
crued interest.
emphasizes the present, the author
covers three big areas, namely the new view of the world with
its new concepts; the new frontiers with its new tasks and oppor¬
tunities; and the human situation, r :
:
'
-.
The first
at
prior to maturity, at a redemption
price of par, plus accrued interest.They will also be redeemable at
optional redemption prices rang¬
ing from 106% to par, plus ac¬
have imperceptibly moved into the "post¬
actual knowledge.
in
beginning
our
called
then
we
Drucker states that
and at $16.50
In this volume which also
Inc.—Analysis—H. Hentz & Co., 72 Wall Street,
accrued
and
eras
American Molasses
Bank of New York
due Jan. 1, 1974, at 100%
interest, was made,
tures,
Laggards—Report—Thomson & McKin11 Wall Street, New York 5, N. Y.,
;,V"
to
;
$2,500,000;'
of
offering
-
Two Guys From Harrison, Inc. 6%
convertible subordinated deben¬
Ten Sound Low Priced
Three
Group Offers K
poration, 120 Broadway, New York 5, N. Y.
&
.
.
Botany Mills—Report—Lerner & Co.,
vs.
Association
representing
the Rocky Mountain Group of the
I.B.A.
'
r!/
Co., 131 West Washington Avenue, South Bend, Ind.
Post
F.
Investment"
the
of
Governors
Bankers
Peerless Insurance Co.—Memorandum—Albert McGann Securi¬
ties
Colo. —Malcolm
Roberts, Garrett-Bromfield & Co.,
has been elected to the Board of
Olin Mathieson Chemical
Studebaker-Packard
Rocky Ml. IBA
DENVER,.
Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau; Averages* both as to
*
Candee & Co., 44 Wall Street, New York 5, N ,Y.
Lerner
New York.
Over-the-counter Index—Folder showing an up-to-date com¬
parison between Hie listed industrial stocks used in the Dow-
Memorandum
Amer-:
meeting at the Hilton
National Security Traders Auo-:
ciation Annual Convention
at >
-
—
of
Not. 2-5, 1959 (Boca Raton, Fix.)
Corporation, National Telefilm Associates, Inc. and Grayson-;
10
Japanese Stocks— Current information
Association
Hotel.
Sound—Analysis—Herzfeld & Stern, 30 Broad Street,
4, N. Y. Also available is a circular on Glen Alden
Co.
.
of Investment'
Group
Bankers
ica annual
Robinson Stores, Inc.
•
Transfer Tax Rates
—Booklet—Registrar and Transfer Company, 50 Church St.,
New York 7, N. Y.
rities
Corp.
Lawyers Mortgage & Title Insurance
Copper—Report—Draper Dobie and Company Ltd., 25 Adelaide
Street, West, Toronto, Ont., Canada. Also available is a com¬
parison ofCanadian vs. U. S. Oils.
to
Memorandum
—
(Baltimore, Md.)
As¬
Baltimore Security ^Traders
;
;
New York
Bmnbam
How
The Milwaukee
2, Texas.
,
Washington
V-:-''
•
—
Anderson, 61 Broadway, New York 6, N. Y.
Johnson & Currie, Bank of
atomic energy and comments on
Co.,
7, D. C.
Analysis
Company, 207 East Michigan Street, Milwaukee 2,'Wis.
-
scaled
are
to
yield from 3.35% to 4.125%, ac¬
cording to maturity. Issuance and
sale of the certificates are subject
to
authorization
of the Interstate
Commerce Commission.
The issue is to be secured by 35
road-switching
electric
Diesel
locomotives estimated to cost
$6,168,815.
-
"FOR SALE"
Associates
Drexel
Union
in
the
offering
are:
Eastman Dillon,
Securities
&
Co.;
and
&
Co.;
Stroud & Co., Inc.
^rason'a dmtinQs
Bound Volumes of the
Keller Brothers Adds
and
COMMERCIAL
&
FINANCIAL
CHRONICLE
BOSTON,
From 1928-1942
r
Available
Lemack
'
immediately in N. Y. C.
to All
Write
TROSTER, SINGER & CO.
Edwin L.
or
/Special to The Financial Chkonicle)
Phone —REctor 2-9570
Beck, c/o Chronicle, 25 Park PL, N. Y. 7
with
has
Keller
Mass.
—
P.
Edward
become
associated
Brothers
Securities
Co., Inc., Zero Court Street.
With Goldman,
Sachs
(Special to The Financial Chronicle)
CLEVELAND, Ohio — John D.
is
now
with Goldman,
Gilliam
Sachs & Co. He was formerly
Fulton, Reid & Co..
.
1
^
with
1
Number 5804
188
Volume
Wtf^l
The Commercial and Financial Chronicle
.
^ M
MHfUI
J.WfeV {
I
mumwmm
r.
/'•
•
j
t
*
i-
■■■.
I
■
i.'V
.
:V
»-fSfiliiiU 1; W,*V¥ *'%'■
**•
;
,
-A
rm*.
Oor; probtenrbis^:;rather the
development
of- -thorough-^relation betweeirthetwo
evaluating expenditure/programs.) going performance budgets.Since
Tt wouid b^*arf»i4 ^teik
fc.-'TT-*
.<*
?mP1hemst^se^a^yegra^there; tli< jfitot i Hdev^r^ Cohmiissien
p\
/
■:
By HON. WILBUR D. MILLS*
V
.
has
w^1B5Kl3sC®^^pi^senjiitives-(D<Ark.), XT/ S. Congress
Well-known tot Authority in Congress
how
to
-as
J
determine
we - can
deals witk the question
whether • of
bOeii
;
too
.
mfcch ■; talk
about
•
balanced^ budgets;
^ther than
deplores economic decisions based on tax
v^r>'v>;'•*V'Tax target
out
'
ri^the :neivk^dio^l ;;
;
barfs^wMchWe^lxj^^
accomplishing these specific 6bjectives. Full, utilizationof-.this
procedure, unlike the budgets that pfece^nls
we have, would permit the evalu- show some'reductions in
expenffiation' of various accomplishments tures bv Dredictirt<? a ron<?idpr»blv
in terms of cost and Could lead to
i^ 6^^
JwSoSd
.
the: abandonment ;- of
parts ,ot. had
this
.^
which produce benefits
that were too small to be justified:
in view of their costs. We have
still a long way to go in developing good performance budgets,
however, -i-rt >
programs
^randtherelS showing
in«t*
howeverthfrtiti*
S
payments
toe
and
b& larger
would
»
3
= ""■"■U
penditure will have to be covered
^en apart from whether or not
T
nVionnm "♦Vinf
t
existing programs wiU involve a
later by a deficiency appropriation
Imight observe .that I believe anmpwhat larcpr ovnnn^ilnhn 1n
+w
somewhat larger expenditure In
bill. A budget is the composite •that: norfnvmnnno KnHrrofo
performance,budgets have a the fiscal vear 1660 it in nrpHiftrii
judgment of what it will cost in a great deal to do with the well- H».™e"-ye«,l«^.Wdg msdie^
that the new Congress will be
fiscal year to pay for services that known
Parkinson's. .Law 1 about
concerned with some new pro¬
are authorized and which at some increasing bureaucracy. I believe
grams and a few of these might
. pointwere demanded by the pub, Parkinson's Law operates, that is, S be
a
,
future
by; the government agency, in
the Only result is that
most cases,
V
.
market considerations; and alerts mutual sav¬
on
ings banks and other tax-favored activities they are a
:rry-
be
profrain
r
.
executiyejagen-If^^e tjia^;^^^S^ S?^f
informed that the
cies have been^tremptr»gWptit
their budgeting procedures on a tares wiii
performance basis, namely, en a
Government
not
is wanted; proposes that the budget Appro¬
: penditure or a service deemed:to.
priation* and fuactioiisbe properly evaluated; and favors s
be desirable, within an overall,
increasing, tax revenues instead of deficits, and ?; would first
: Budget of $20,; $30, :or $4Q billion
seek ways to do Co without a general rate increase. Rep. Mills •
;r,: continues as a desirable, justified
expenditure as a part of an $80
suggests broadening the tax base, removing special deduc¬
r.; ^billion, budget For it must be
tions-and preferences,, and increasing urates .on some specially
,t( :y understood that ;when , Congress
favOfed income as the first way to raise tax income, fle warns
: :
cuts -an i appropriation -without
of the dire inflationary consequences of not facing up to un¬
; *
cutting the function to be carried
speodiaf
"
^
r^jommendations,- we have teen
merely cutting expenditures with-,
out -obtaining .results :and
not
fceatfy enougfi talk on the subject
;not,s*e sshouM
<■ the-sr specific;
;A-
^
iftans
Chairman. Committee oil Ways a^)
•
#;
^such.
~JBF '
i
.'f
W
r
■
(2525)
11
:would n6t say tet our broblem^ is the possibility, of improved penditure policy does not give
yMliilr ' ag ^
blindly cutting: expenditures as biKlgetary:proeedures, speci£ieally, adequate 2reoognition to the inter-*
t WI
mm;,,
mmmm
'
*'
..
:V-
-
considerable amount of.its
ex-,
v
?,
^
o
observation Von the to obtain more liquidity. It is a
economic growth is generally accepted principle today
that a flexible monetary and fiscal that government, specifically the
policy designed to produce stabil- Treasury, must act in the same
way in times of a general reces
ity in output
sion. If in this situation tax rev ^i
inakesamajorMy- first
problem of
_
trib
c o n
economicJ
to
ha
been
tested
the
in
there
and
and
are
bright
dark
results.
first
as¬
the
to
pects
In the
Hon. Wilbur D. Mills
it
place,
V
be
shou1d
winter
of
1958, the economy
exposed to
was
able shock.
consider¬
very
a
have
far
so
recession
noted that in the fall of 1957 and
the
automatically.; goh.ri.pni)p
down, I believe there will be great ,
*'
told
by many Wh°
pressures to carry out the TreasWe are
election results
ury function through undertaking interpret recCnt
a
great variety of new expendi- that ^the-^incoming Congress
iuro nrncfroinrts vir taYVP/iiipfinn nt*
be at'-'lCast - as ■ sympathetically
ture programs or tax reduction or
concerned with the current exboth, as a means of achieving
periditure programs as have been
economic stability.
'
recent ; Congresses. They tell us
On the less bright side of our
that
we
can
not
realistically
recent experience is fhe questton,
expect any substantial reduction
could we have done better?
We
m
gov«nment expenditure prospend a good deal of time thdse
grams. At the same time we must
days congratulating ourselves on realize that a
proposed budget
the very impressive way that we
which does not candidly and ac¬
Gross private invest¬
outlays declined by about
billion in annual rates in a
ment
toward full
from
recovered
have
and
the
proportions and duration.
On Nov.
employment.
1957, I called attention to the
that
unemployment would
March, 1958,
unless the force of monetary pol¬
5,
reach five million by
hastened
These
j..
Thus,
.
,
we
did
not
,
..
_
have
serious
a
.,im.
—
-
a
__
—
I
in
declining
income
consumer
This automatic decline in government tax
revenues
meant that at a time
when individuals were getting less
income in the market place, the
and
business
government
their
income
income.
was
in
less
taking
taxes
and
j
.■
.
think
a
promising
expenditure area
the
Growth
contribution to economic growth.
Our national economic accounting
SyStems do not attach
New York,
the
taxation.
plants,
assets
of
and
ment
occasionally
included
are
national
ever,
that
asset
this
time
tn
$7a
hi 11
ihn1
system must have a bank of last
lesort.
This is a bank which in
the fire
financial
panic
is
in
a
position to expand its loans when
other bankers are faced with the
necessity of reducing
their loans
The
could
we
would
be
have
a
To he dated January
govern¬
acquire
City, Dec; 2,
Banks, New York
achieve
..
Taxes
The
1958.
mention
omy
early date.
.
Economic
and
of
I
Growth
taxes
■
note
that
some
forecasters
have
predicted that the rate of
recovery might be a bit slower
brings
AHH
W*-« w
,
3
we now have, and our econ¬
must reach those levels at an
than
omy
the
next
12
months
than it
has been
over
the last 6.
If such
over
is
the
the level of revenue
for fiscaj year i960 WOuld remain
case,
appreciably below maximum posslbiutles. For example, for each
$1 billion jncrease in total personaj
inc0me, Federal revenue
1
perience of recent years indicates
that our institutional structure for
determining both tax and ex-
/
,
Chicago and St. Louis Railroad
To mature $164,000 each January
July 15, 1959 to January 15, 1974.,
siders
ment.
sort
protection
We
of
at
MATURITIES AND YIELDS
3.25%
namely
fense
On
same
4.00
3.70
Jan.
15 & July 15, 1963
4.05
15, 1961
3.80
Jan.
15, 1964-JuIy 15, 1967
4.10
July 15, 1961
3.90
Jan. 15, 1968-Jan. 15,
These Certificates
received by us,
are
we
Salomon Bros. & Hutzler
Drexel & Co.
Eastman Dillon, Union Securities & Co.
national
Stroud & Company
It is not ob¬
Incorporated
get
more
real
down on de¬
is required.*
that
expenditure
side,
I
4.125
issued and
Commerce Commission.
need?
we
1974
offered subject to prior sale, when, as and if
subject to approval of the Interstate
policy,
defense in¬
insurance
Ihe
better invest¬
3.95%
July 15, 1962
much
how
do
that
a
Jan. 15, 1962
3.50
July 15, 1960
to
money
faced with the
choice in
surance
vious
are
Philadelphia Plan with
international
his
used
15 and July 15
20% cash equity
Jan.
December 17,1958.
ino
Continued on puge lUo
15, 1959.
15, 1960
or
flntiroximatAlv «in billion
approximately $10 billion greater
governmental econ¬
without sacrificing valuable
programs.,
•
.". '.
can
Issued under the
Jan.
1959
in terms of the final job that the than is "estimated for fiscal year
agency has to do. By continuihg 1959. It will be necessary to have
our efforts to relate good Per- a ^ch higher level of *'economic
formanee ; measurements to otff actJvity
through
the
next
18
budgetary decisions, I believe we months to artlieve this objective
front
bigger factory. He con¬
the smaller factory with
growth by cutting
by Rep. Mills before the
of Mutual Savings
Association
performance
vear
Vs%Equipment Trust Certificates
July 15, 1959
build
even
measure
yield
that the President originally pre-
these
estimates
in
wealth.
tion.~
could
address
$75
approximately. 5% abovd
Non-callable
although less obvious, value. Cer¬
in a recession.
♦An
We need to
4
acquires other assets, how¬
which may be of far greater,
banking community is famil¬
iar with the notion that a banking
The
National
of
Equipment Trust of 1959
judgment that tax reduction
To
illustrate this
point, conwas not necessary to bring about
sicJei. that t0 the extent tbat we
this stability and an upturn has
provide for adequate defense, we
thus been vindicated.
protect our economy from the
In this regard it gives me some devastation of war, and thus in¬
crease its real value.
Any factory
concern to hear many individuals
has a good deal of fire protection
now
speaking about the desir¬
ability of adopting different taxes provided in its design and this
fire protection costs money. With¬
that would provide a more stable
out the fire protection the owner
source of revenue to the Federal
-
emnlov
the full employment revenue
$4,920,000
value to
a
Our
of
whether each
busy .writing inter-office memos, (jilted for the-fiscal
v:;:;-.;:.;. ^
was
reduction in the rates of
time
fulf
;.',V
relativel y peace. No such asset could be
speaking, stabilized and without subjected to a financial evalua-
Government
h«od
is
of tainly, for example, the greatest
availability of dollars for private
expenditure
bureaucrats
NEW ISSUE
depression must go to the auto¬ the assets that the government
matic
flexibility that has been acquires in the same way that it
built into our fiscal system. The attaches a value to private invest¬
$12 billion deficit that has been ment assets. There are, of course,
predicted for the fiscal year 1959 some government assets that are
was due in the major part to the
useful in the same way as priautomatic decline of tax receipts vate assets, such as dams or power
with
the
taxwielrt at
a
siae.a xax yield, at tun.employ-
Contribute to Economic
view, to one_of^the
Considerable credit for the fact
1.
jii f* t*.
feature
impact on the economy. Not
I
think
it is not sufficiently
enough consideration was given appreciated that well-chosen and
by this point of
worthwhile government expendibuilt-in factors of our fiscal sys0
1
ture programs can make a major
that
side
Expenditure Programs Can
to
•
■
programs.
its
tem'
;when
objective of reduced government immedately to the fore the prob¬
spending. Despite current predic¬ lem of inflation with which the
is partions, however, I am a sufficient savings bank industry
optimist to believe that am in¬ ticularly concerned. Of course, a
crease
in knowledge migni ieaa prime element in inflation is the
Knowieage might lead
element,n
wiaI
#vt!.
to different specific recommenda- relationship. of
oui expenditure
tions
and
a
cutback
of
some policy to our tax policy. The ex-
fact
advise
immediate tax reduction to soften
others
what
with the question of
curately reflect the actual costs of
government does no real service
in the direction of achieving the
far moved
so
$20
icy was utilized in supplementaperiod of six months. On the basis tion with fiscal policy in an efof previous experience this would fective
manner
to
create mores
have been enough to touch off a flexibility. It was not until much
later that the full force of mone¬
very long depression and many
were
caused to predict not only tary policy came into play.
a
down-turn but one of sizable
and
measuring
r;
past 12 months
both
proliferates,
^
io
„ot sufficient effort is devoted to
exex-
will, office is busy. An office can be
regard
,
s
fiscal
fiscal
.
policies in
this
time-aeainiin'our
time again.in our
.
growth.; The
flexibility
of
our
-and
and
not
do
eniies
t ion V
u
a^t^V^
1,c- This has been borne.out time bureaucracy
.
The Commercial and Financial Chronicle
Strengthen the Free Countries?
jl'J/;,
FALL«nzig
asks those who favor various egalitarian schemes to
redistribute our gold, and who favorably view the recent sub¬
stantial gold out-flow, whether it would be such a good thing.
He explains why depletion of our gold stock may not necessarily strengthen all free countries in the same proportion and,
should it continue to a danger point, why it might well be dis¬
astrous for the free world. Adds the reminder that we should
not fritter away financial resources to enable well-meaning,
'
'
LONDON, Eng.
Most econ¬
—
and even many
'th
t the d e-
a
1 i
.
American gold
by;
reserve
well
$2,000 million
during 1958 is
a
f
matter
it makes
cause
for
o r
be¬
rejoicing,
less
a
un¬
usual distribu¬
tion
So
of gold.
m u c
h has
been said and
written during
last
the
years
Paul
Dr.
about
,,
the evil effects of the
/
,
maldistribu¬
tries
of view of resist¬
if
fact
the
that
a
redis¬
would not neces¬
strengthen ail free coun¬
in the same proportion. There
would
it
tribution 'to
be
assistance
render effective
to
instance,
export
drive
a
in
,
redistribution would be
Britain
assist
to
without
unduly
In view
of
an
the recent outflow of
to help
gold resulting largely from
tries,
change in the American bal¬
ance
of payments, this argument
30
a
no
often
longer likely to carry con¬
viction.
argued
States were
that
the
selves
"'
re-
companies! to
the American gold reserves
scale
the
of
Should
vecent
outflow
the
*
>/
would
gold losses.
continue too
We
firms
have
in
stencil
metal
a
the
stock
and
for
bond
investment
every
business,
one
all
dealers
Canada.
of
these
arranged
alphabetically and geographically by States and Cities.
list is revised continuously and offers you the
up-to-the-minute service available.
This
most
Addressing charge for the entire United States or
Canada
$7.00
per
thousand.
N. A. S. D. list (Main offices only), also
geographically and alphabetically, approxi¬
mately 3,900 names. Cost for addressing U. A. S. D.
list $8.00 per thousand.
«
Special
arranged
We
a
can
also
supply lists
small additional charge.
on
gummed roll labels at
/
tiort be given to such factors as
allocation of premium / writings,
principal geographical distribution of writaffiliate or subsidiary in the op- ings, etc
posite end of the business (casu¬
Ratio of Loss Reserves to
alty affiliates of fire parents; fire
.
data
»•
would
It
.
with financial assistance
kind.
The
American financial strength is one
chief
the
of
v
assets
?
25 Park Place
—
REctor 2-9570
—
New York 7, N. Y.
December 31, 1957.
the ratio to increase. For
world and it should be husbanded
multiple casualty
America^ ins"—
they could
Apart
they
should
their
on
of
Street,
47
Fidelity Phenix.
53
25
85
Fireman's Fund.
54
52
54
s?
Greenal
American
44
30
73
Hanover ——1
33
58
Hartford
39
Nat. union__i-_
New
21
58
32
28
16
33
33
41
61
11
59
51
37
80
65
90
,
,
73
J
31
Hampshire
21
Northern Ins.—
North River'—
35
19
£acific-
33
propwash.-IZ
39
Reliance ——i—
44
ferity1""-1 ~
38
47
34
Other factors contributed to the
Aetna casualty-
for
greater
reserves.
«
*
1
66
96
The ' Atnei. ourety
^mer- J® Jfnvs'"
58
would
not
be
other
in
stand
to
mitted
the
on
workmen
injured
of
part
injured in motor
accidents. All of this spells greater
for the carrier.
..
.The table will show the
to which some
Careful
ance
.
extent
units over-reserve.
management in an insur¬
tends
company
to
over-re-
Insurance
a
Co;
of
reserve
will
The firm
Blanks
North
ratio
of
either
indicate
of
absence
an
only"
fmportuncer cn amliate of
^
Laurence M. Marks
To Admit E. E. Barrett
M.
Laurence
Marks
Co., 48
&
Wall Street, New York City, mem-
bers of "the New York
Stock Ex^
Jan.; 1 . will admit
America, Edmund E. Barrett, Jr. to partner-
As an. example, Indemnity
.serve.
49
65
u. s. Fid. & oty.
compensation
(under
cases) or persons
42
80
per.
days.
Also, there is much more malingering
47
are
that
verdicts
wit h
36
WcasSy•
faced with many continental cas.
outrageous* jury
verdicts, Fidelity & Dep.-
more
New York City, members
Stock Exchange
:
29
21
;
98
29
——
ir^co"^^!-
19
.
30
companies
of the New York
;
;■
85 53
5edeSi-!!i-?J
Springfield—III
.
Lynch,
*3l "k' *
25
48
u, s. Fire—-i—
need
American aid.
47
34
34
hazards. And
v
only rely on
Merrill
18.
greater risks it was logical
that reserves should increase.
lines carried greater
from such instances
learn to work out
Jan. .12
#
with
salvation, instead of re¬
own
lying
*
28
47
*
40%
28
47
lines are more - Bankers
ship,,
Boston ins./——;
great care. It should not be
frittered away in a well-meaning multiple fire lines. The fire business
ran
along on a fairly even
effort to help
friendly govern¬
keel for many; decades, and-they
ments by enabling them to post¬
were
disturbed ;,only by the suepone the evil day on which they
cession of hurricanes which started
have to face the realities of their
with one in 1938 and ran in an
economic situation.
It is largely
because these governments have irregular pattern into the 1950's.
We. have had; none that visited
felt
that
they
can
depend
on
inland areas for several years.
American aid that they have failed
But when
the fire companies
to tackle their inflationary situa¬
tions with
the
required degree crossed over into the casualty field
of vigour and determination. But in their efforts to develop greater
for the availability of American diversification of business, losses
aid in situations which these gov¬ tended to increase as the casualty
that
40'/r
Aetna insurance^, 28
4icf
example,
4
Parent
dated
hazardous for the carrier than are
with
Major
Affiliate
Consoli¬
companies branch¬
ened by many
ing out of their old set lines into
newer
ones
the tendency is for
the- free
of
Earned Premiums
parents).
writings is broad¬
As the base of
not to be over-
indiscriminate
an
affiliates of casualty
be wise for
therefore
the United States
to the
it relates
as
98%,
or
change,1 on
ship.
,
•'
,
,
.
-
.
and other leading Exchanges,
become
is
a
now a
corporation.
partnership. New officers
and
be
of
directors
will
The
named
move
is
the
corporation
shortly.
being
made,
ac¬
cording to Winthrop H. Smith,
directing partner, to insure per-;
manency
of capital rather than
depending on the individual part-,
ners for the supply of. capital. '
A
Top-Grade
Conservative Investment
THE BANK OF
NEW YORK
Bulletin
Available
on
Kessler Opens
Laird, Bissell & Meads
20
ties business,
-
Almalfiamatirtg National Bank aj India
and Grindlays Bank Lid.
Telephone: BArclay 7-3600
BeV
'L.
A.
Teletype—NY
1-1248-49
Gibbs, Manager Trading Dept •
Smn* 'wfc.
tnerialistx fn
Ltd.
Head Office:
26 BISHOPSGATE,
'
'.
LONDON. K.CJ
London Branches;
S.W.1
54 PARLIAMENT STREET. S.W.1
Bankers
to
*'
the Government in: aden. nmri,
uganda. zanzibar a somal1land
Branches in:
BROADWAY, NEW YORK S, N. Y
Richard Kessler has opened of¬
fices at 20 East 35th Street, New
York City, to engage in a securi¬
Stock Exchange
AND
BANK LIMITED
13 ST. JAMES'S SQUARE,
Members American
Office
OVERSEAS
NATIONAL
GRINDLAYS
Request
Members New York Stock Exchenff*
Herbert D. Seibert A Co., lee.
V,j
.
ther there is next shown the same
Lynch Will
Become a Corporation
and 900 in
bees.i**; ot cross-
alone,, Carrying it fur-
company
Pierce, Fenner & Smith, .70 Pine
approximately 9,000
are
casua.i';y
,
x
on
basis, the ratio of loss reserves to
Adds Advice
As
There
casualt?
a
have first given, on a
.
and brokers in the United States,
uipare a
with
In- the
-(
of
Merrill
Addressing Service
32vf%
%re
consolidated basis.,.At the 1957
exposure
Dealer-Broker
about
a
accompanying table we up. proportionately -heavier : reconsolidated serves, related to earned premiums than does;;: another, the
not be therefore a matter for re-- earned
piemiums. Then the like chances are good that the first
joicing. The United States could* data for the parent, company has mentioned is over-reserving.; Bjf
of course, well afford to continue
been segregated to show the result saying that, care should be taken
losing gold for some time on the in .this connection of. the parent in comparing in that close attenweakening
considerable
A
cies.
United
holding the gold
-
compIre
But there are a number of reaindeed even to help them-;; yearly date) the comparable fig- sonably. comparable cases,': and
in face of a major Com¬ ure
was about 37%.
" >
when one of these companies sets
American aid in major emergen¬
During the 'twenties Americans
schedule
pany to company in a
or
munist economic offensive.
ize
Trusteeship Argument
verse
is
effectively.
ad¬
an
J^in^from, pom-
premiums back around the 1946-50
period averaged out among over
it difficult
depleting their own reserves. But
economic case for should the
large part of the Amer¬
ernments could and should have
redistribution. Until recently the
ican gold stock be redistributed
handled effectively without such
agitation for * redistribution was
among a number of countries the
aid,
inflation
would
not have
met by the argument that, since
United States might no longer be
been allowed to proceed so far as
the balance of payments of the
strong enough financially to assist
to
necessitate
drastic
disinfla¬
United States was strongly favor¬
Britain effectively without risking
tionary measures.
able, the gold given away or lent an undue depletion of their own
It
would
be
infinitely better
to other countries would soon find gold reserve.
Nor would any of
from the point of view of the free
its way back again to Fort Knox. the recipients of the redistributed world if the governments of free
American gold be strong enough
countries were to be made to real¬
Nor is
unanswerable.
to make out
premium
unearned
-
recipients of American gold > be year*end r(not all ,companies restrong enough to help other coun-r.< port at the quarter or even half-
of
For
to
that care must be exercised in
,
Nor would; the
occasions.
major
con-
a
as
This reserve of losses to earned
oil
■
'
reserve
By frittering away their
gold reserves, the United States
would no longer be in a position
generous
concerted Soviet
Britain's export
some such redistribution.
market is liable to deplete the
Beyond doubt the United States British gold reserve in a relatively
has more gold than it needs at
short time.
Under existing con¬
present, while most other coun¬ ditions the United States would
tries have considerably less gold
be able to come to the rescue, as
than they need. On the basis of
they did on a number of occasions
the equalitarian principle which
in the past. Thanks to their large
fcas become the modern fetish, the gold reserves, they would be able
a
benefit
whose
for
sarily
in for criticism from time to time
for
out
iVrenuircd
whafpvpr
countries
applied.
tribution of gold
gold, and the United States came offensive toward such weak links.
case
would really help those
they
plans were put forward by ex¬ would remain weak links in the
perts and pseudo-experts, aiming chain, and the Communists would
at the redistribution of America's be able to direct their economic
to 'agree
may
cation of the egalitarian principle
Communist economic of¬
overlooks
Again and again ingenious tries
being' unwilling
it
the
by
ance
•
circumstances,
<
regarded axiomatic that any
outflow of gold from the United
States must necessarily be a good
.
American
strong.
so
such
allocated
reserves
well be asked whether the appli¬
strengthened their
gold reserves at the expense of
the United States. This argument
to be
for
are.1 serves for insurance companies is
insur- some measure of tax saving. This
company to ..claims that will is>in
addition ^ to ^salting awayt
be resolved
into losses.
Earned equity that does not .appear! in
premium volume is what is left of liquidating value. ;
net premium. volume in a given
■_
.,
.
.
,
*
.
-v
period
after
the
deduction
of ...
ut it is importa t to point
Definitionwise,; loss, reserves
precisely*
gold re¬
arguable long, however, or should it assume
the financially weaker coun¬ larger proportions, it might well
could increase their resist¬ be disastrous for the free world.
ance
since the
it has come
First World War, that
to
that
been going on ever
thing.
In
Good Thing?
'thaf"lias -been af- * Hartford with 90%, would hardly
iected
fensive. Indeed it is even
.
tion of gold, through the increase
in the American gold reserve that
has
the point
ance
Einzig
the
of
some
world
free
the
was
serve
power
from
30
the
to
because
of the United
States is of paramount importance.
During the coming years the
cold war will assume largely the
form of economic offensives which
the Western countries have to re¬
sist in order to survive. In theory
it may appear that, so long as the
gold lost by the United States is
gained by other free countries, the
redistribution makes no difference
financial
over
time
to
able to render immense serv¬
ices
gold by the United States is a
good thing. It is that from the
point of view of the free world
the maintenance of the supreme
.
in the
n e
a
time
-This Week—Jnsurance. Stocks
One" sta^t'i'stic
ond World War the United States
There is, however, a much more
convincing argument against the
view that
a
substantial loss of
United States
economists within
the United States take the view
the
outside
omists
Gold Loss
Is
=
by - the**wide " development7-find it reasonable to "stay in "busiaccumulated goltf is released in, of
multiple-linev Writings by the mess if, year-in and year-out, they
the form of dollar aid to countries fire and
casualty insurance com- were perforce obliged to set up
that need it.
Oh more than one
panies has been the ratio of loss reserves of such nature; A beneoccasion since the end of the Sec¬ reserves 'to earned
premiums, fit arising from high rates of re-
was
of their economic situ¬
aid should be only for major emergencies.
'
By ARTHUR B. WALLACE
that the United
playing, in .possession
of a much larger gold reserve than
they possessed in the 'twenties**
that role
cisely
From
friendly countries to avoid the realities
ation, and that our
Bank and Insurance Stocks
States .are
Dr. Einzig
;
Since then the influx of
European gold to the United States;
continued with few interruptions,*
but the trusteeship argument has
faded into oblivion. 'Yet it Is pre-^
Europe.
Gold-Outflow
Does the U.S.A.
for
in. trust
Europe
from
ceived
c
Thursday, December 18,1958
....
(2526)
16
WOIICIOMM
e
WDIA. PAKISTAN, CEYLON, BURMA, KBNYA,
Tanganyika, Zanzibar, uoanda.
aden. somauland protbctorat^
Bob
1 iiiii 11
amp buhiiirh Rnm—i
Volume
188
Number 5804
.
The Commercial and Financial Chronicle
.-.
(2527)
00°
people
more
States than there
about
:
if,
different
four
stand¬
points. One-is the current situat io n riii the.£;jy;
:l
•
of
per
tinued
be
United States
rise
It
,
annual
rise
hour
man
and
in
an
States.., Expansion, abroad
of* about
-i
-mnn
t?
From
+
--a
*
i
nhvJcn?
Pends
i
j
1909 to date the standard
^
^
in
t h
iefm
which is
A
third is where
"
which
c
1
o s
we
can be
0 9X
discovery
slower process.
?
which
rise
Can .we expectosuch growth to
continue?-!, have ' already indi-
be
and
more
"
u
"
ceutical business be expected to
continue.
As I see it, the likeli-
f.ood 1S distinctly m the affirma'There are a number of reasons
that seem to me to point to this
s
the fact that it continued through
*Jasrec®ssion
a.nd wdl achieve ayear—wan
new high
in
total volume
this
<
in my opinion
receives full
achievement few
industries have
made.-AV ,;
Total
population
nV%MA
r-u
growth
;;
for
^
.
LeAfd Af!?
JJjJ? *f
expansionary trends
the Papulation constituent of this
growth is likely to continue.
services rose.v
have; been
happier
conclusion,
measure of aid in return,
The prospect for continuation of
pur-V?«jted -the evidence to suggest that long-term
goods and
increases
better,
^•I^enf^9s.e"t and continuing
or•of the industry is attested by
Fur-
thermore, within the free world,
the. Mutual Aid Program, helps
w
a
Can the growth of the
pharma-
^
an
+w!AILSfl
Alri tiAf A +vA
™a:
tu
in the
are
we
for,
productive life.
here and abroad is in my opinion
quite-;
the most important single fact for
general throughout the economy. '} - Going beyond-population, we business institutions of all kinds
The stock market has a vision • live in a country and a world seek- to consider. A focus on the essencunaiucx.
x\ iuuus uii
mt:
The
'
\sub j ect
a
iterms has- but let me add that
;got8"fhm.. - - . r -* j- the United States
explained by- the statement that tolal
chases of
econom¬
trend.
ic
simple
long-
e
business
can
9* dlness ^rom many others makes
more
knnwlorteo
now
shortening-of the period
a??11
at"whote-^AfeA^^other • countries in learning and
Ss^^M?? EKill*w adapting methods known here—
*
summer
are
more1 Upon the
and utilization of
underway in the late spring- and. •♦
| where we
a
per
impact of many diseases,
.
con-
istihg knowledge to a rhueh greater.
provided a steadily
degree than can be done in the
rising standard of living, and has
United States:
we
are
utilizing
;
made possible a large rise in dismore
fully the stock of present
posable income, which is the in'■
knowledge, and our progress de^ come; left after taxes, 1 ^
"
outlays of state and localgovern-1^
ments rose steadily.. Farmers, had
vpt
in
Wmf
a very good year. The cost of liv-/Au
ing,. commodity prices
sale,: and
wage-rates didvxiiDt;:
The
^
-
population
■«:
w°rker has grown. The great dim-
rapid rate than that* of the United
av-
production
worked
world—will
tinue for years to come at
long period
a
communist
in
!
has improved and productivity
abroad.
likely that the expansioq abroad—both free world
But, of
the population has much
than that. For
and
most
seems
2 % .- This has
decline.
is
my conclusion.
The
likely prospect is for conlong-term growth in the
most
factors
;!
And it is in no small part thai&s
to the better care and medication
of people that working efficiency
now
c
present ibusiness cycle.
.
would
this population
decades, there has been
erage
Ano ther
•
Cin-
of
barest ' subsistence*
/- more
rapid; rate than in
the United States, and numerous factors are detailed regarding
the continuing vigor of the pharmaceutical industry, including
the fact that it has been little affected by the recent recession.
The author pointedly warns against five' risks l which could
;;.prevent the predicted future from materializing.. •
v
current situation and out¬
size
expansion
with
L course,
will continue for years to come at a more
from
the
I said, each person had only
as
the
;
specialist opines 1959 will be the most prosperous year yet,
and communist world expansion most likely
of the
cities
important
growth.
,
And
•;
marked
the free world
look
100
Economic
^
appraisal - of the current •? business cycle,
long-range economic trend and, in .particular, the pharma¬
ceutical industry's outlook, is an encouraging one." The finance
I want to try to give the views
of increase is probably still larger
here.
f,:
"
Woodward's
Mr.
United
cinnati.
•
Chairman, Finance Committee, Vick Chemical Co., N. Y. City
the
today. This
the equivalent of adding
would be
*•By DONALD,B. WOODWARD*
in
are
JI
*
„
age groups max aye
,
of these lone ranee* trends,
ing cultural and economic progress tials oi xnese long range* trends ! r^e Hsers °*- medical care inciu^*
mg
pharmaceuticals have; been
and more wonderful glory to come, with * more
determination
than and plans based upon taking ad¬
expanding as a proportion of. the
in the future.
/ -.fever
before in'history. /In this vantage of them, is the soundest
of great present glory and greater
to
live
est. The
.
But it should
fourth view is
.
be noted
country
that the
the Employment Act
of
and most
secure
basis for business
in emloyment has been slow
I Ulo
in terms U1 .XUC rise III, production^;
of the 1 lov in piUllUt^IUllj
rise
1946 bespeaks national policy on management.
Short range eco-; vn i ^
Which J-MVOt mqjor groups agree., IIUIJUL UULlUdUv/Ilo are f insecure^ U/j/in iy»n*»nocjlrt nnhci/1 AitnKlvr
most
nomic fluctuations die iilovtU1 L;[
regarding
and this has very important
po-There are comparable-,acts /and. and inadequate bases for plans vaniVllv thSA
J+nAf
risks — theru
Donald B. Woodwari
litical and policy implications, policies in every, country in the and procedures which affect the
^B. a^A9 A>t^J
;
are.
always
Those businesses and b „ 11 at inn nfth i«{rp^
risks and it is wise to look at Also the lack of decline in impor- world. This country and the rest long run.
"
r,A AA-viu
ic
JAf
\ them. On each of the four views tant cost and price indexes, and of the wqrld are devoting unprece-., those concerns which can take adthe Government's financial-prbb- Sclented amounts of resources, to vantage of the great^^ underlying^
only
1 shall state what seems to me the
most likely course of events.-1 Jems .have increased fears of fur-: scientific: research.
This pushes, trends in the economy of the world tha't
shouid ronSSSS
shall end up with certain specific ther , erosion, in the value of the. back . the .frontiers of knowledge will prove most enduring and most t
expand anl? to do so more ranconclusions
dollar.
.
and results- n a won.lcrful and. profitable.
wlv E thftntM it^
idly than the total U. S. econorriy.
I v V
:
The present situation thus con-. stimulating flow of new products
Continued .increase in per capita
III
tains some contradictions and un- and services as well as better ways
income makes it
where
we
are
«
...
•
•
Where We
■
V
Are
—
Business
•
The
Current
Cycle,..
Currently business activity as
toy the usual indexes is
tains
solved problems.
But let
me
to make
•
race
to
on
are
Pharmaceutical
The
jces. Many scientists believe that;
con.-
my
TW most iikciv
(■lii.ton
goods and perform serv-
Business
people to give
In the environment of 'economic
probably merely approach-
<? measured
somewhat above
:
possible for more
attention to
more
their health and to pay for it, And
the large and growing,'research
a
spring; when
about three quarters
a ,.ycai
ended. That decline was the third
last
t
"
recession in business in the United
States Since World War H
and all
,
mu
„
,
..
.»
-
.
,
J,
T^e Recline in business orous
^5 ? expenditure
.to have.i...... r;
Af^
A ,irl?reas^
Faster
-
growth in the
,
been
^
at
rate
a
past
has
20 years
about
that
double
|
of the GNP.
Growth Rate Abroad
industry and the foundations, for
example — suggest a continuing
and
perhaps increasingly large
.
1
,
1
sight. The liquidation of.:I
ii.
v.flow of new and-improved prod^The^^ve?v^frem^thTrecei#d£ inv&ntoHes is ending and some 'J;';But'W^ should not—and we do But while this industry has ben- ucts which will make for vigor in
-cl^elfnow a^it haSfo Uri accumulation irt> i nven t pr teVis':
our attention solely to efited by the general economic the industry> and contribute to the
likely- Next year'should' be a bet-* the United States, Actually, dur- growth I've stressed, the pharrna-; expansion of the economy in gen***
:year^ tlmir thi^' ^g recep^ years, the rate of busi- ceutical business has been an im-. eraL ?
® ;
normne^—Dersonal ineome-^-sub- Government expenditure will be?
^P^sion i ,n to to e /United portant contributor to the general ; And finally, this industry operrf^ie kS^Tof the maintained and probably rise: And; States, striking as it has been, has., economic expansion. For, it is ates abroadf and wiu contribute to
decline have been obliterated and the important consumer continues "t^n .pne^of the slowest of any touks m no
small part to the and participate in the more rapid
^the^ totalc^ose xo a new in thethe rest of the.greet advance in the medical care economic expansion there than is
the total is-,now close to^new
offered to-hiih and-.to buy it.
worid—aud -this means both the of people, to which this industry mely in the Unlted states. ■ I ;
In summary/T believe thato 1959
,
the communist' contributes so much, that populaConsequently, it seems to me
Simply stated, the business dewill be the, most prosperous year* ^
d—have been expanding at a- tion has grown as much as.it has. that the future is promising, that
^ha-t the future is nromisine. that
cline from the late summer of 1957
the American*economv has ever greater rote than is the- United; The.decline in the death rate and
Continued on page 104
to "the late spring of 1958 occurred
-ihree have nroved brief and
mild^^ seems in
A
.
u.,
,
,
,
i
^
.
-
in
because
-
-
total
the
of
amount
goods purchased declined. That is
what accounts for all business declirtes.
;
In
reduction
decline the chief
occurred in purchases
this
seen,
as
measured by GNP,
per-' States,.though the actual amount the increase in lite expectancy are
sonalincome,industrialproduC--!t"
tion
and
other, customarily
used
;;
,
„.
mdexes
December
NEW ISSUE
17, 1958
pf automobiles, houses and house-,
hold equipment by consumers; in
purchases of capital
equipment- and inventories; and
in
purchases
of United States,
goods by "foreigners. Factors contributing to these declines in purchasing were automobile models
that did not have as much attraction as in previous years, heavy
burden of instalment payments,
Where We Are
-
v
*
<
:
.
.
..
lessened
?—
The Long-Term
Trend
business
Let
me now
perspective.
take
i.,
,
are
a
look in longer.'
...
~
r:.
with a
remarkably persistent growth record.
While
an
this
economy
is
B
•
well-known
it seems to me that inadequate attention sometimes is given
fact^
to
the
$2,500,000
C
•
Two
Guys From Harrison, Inc.
6% Convertible Subordinated Debentures
Due
January 1, 1974-';
persistency and magnitude
"availability^ and higher 0f the growth,
or
its underlying
cost, of anoney for financing of constituents. I would like to stress
both consumers and business, and the persistency and magnitude and
yhigh prices and -belief- that prices underlying constituents and then
might decline in a number of note some implications.
lines, and a concomitant sharp
There are now 18 times as many
fall in corporate earnings. In all
people in the United States as in
this, there was some decline in 1820; there are now considerably
*, the confident expectations of con- more than twice as
,
/
.
Price 100%
plus accrued
interest from December 23, 1958
*
tteuing prosperity that had existed
earlier.
4But during this decline in total
purchases, it was notable that total
personal income declined scarcely
at all, and the same was true of
total
personal - consumption ex-
many as
when
centlirZ beg^n.
With such a
large increase in numbers, the eco-
nomic
system
would
have
Copies of the Prospectus may be
as
niay
obtained from such of the undersigned
lawfully offer these securities in this state.
been
enormously expanded even if peopie Jiad only the barest subsistence of food, clothing and shelter,
The next decade, when the enor-
penditures. While government in- mous number of war babies will
come declined there was no
re- be marrying and forming families,
duction in Federal Government may well be referred to as the
despite much talk, sexy sixties. If the experience of
actually an increase, and the the past half a century is continued, the highest projection will be
Bache & Co.
A. C. Allyn and
Incorporated
Company
,
Bear, Stearns & Co.
,
«
Blair & Co.
Incorporated
expenditures
but
■
•
„
Digitized^iatSSTNew York City, Dec.
for FRASER
,
renseivaUve.
io, loss.
And looking omdo
1980, there may well be 100,000,-
Francis I. duPont & Co., - Shearson, Ilamniill &
Co.
.
12
The Commercial and Financial Chronicle
(2528)
1
.
'r
I
;. lative
.
recommendations
f
thy Wctioh with:the Act.
The revised
*
in
con-
a
b
n u m
e r
con¬
on
substantial
f
o
.
^ t ' J- '*-*:■
regulations do
tain
'changes; from; the proposed regu\ lations that were; first issued on
/
r
•
BARNES * /' r.
By WENDELL B.
V ::
''V
'
Washington, D. C.
~
there
was
which
.
,
instances,
and,
in
concern
others
over
that
.
sig-
.
the
statutes and
to
my. certain
the
regulations,
knowledge some
worked
until
the
the morning
8:30—and
our
until
as
last week until
Thanksgiving
of
late
nesota,
make
country.--
pro-
>
it.
of
He
on
.
tol
.
a
duction
Some of
Thanksgiving
large part of our staff
item
talked
The
* :
Humphrey,
by
amounts.
By
■
.
in
company:
Small
the
Ad¬
Business
to be
lion are clear.
ful
as
to
persons
possible
planning to
organize com¬
panies
under
the Act, to
and
Say
had
capital
a company
m,
Wendell B. Barnes
sistg'rit
\
with good
I want to express my
tion
which all of
administration, and to
process
applications for 'they'll- will not find receptive and enthucensing of investment companies siastic investors. They must also
with the greatest possible dispatch, maintain or have access to. reV;
V
•
i
Ingredients of Success
•
We
serves, as
tutions.
-
Essential
do
the
all parts of the country.
dividends and investment companies must earn a profit or they:
a
m u
mini
c oh
of
appreciaenthusiasm,"
sincerity and interest they have
ries, rent, travel and taxes. This taken in their jobs and in the
would not include any
possible prompt development of a program
paper
to
offices
field
intend
make
to
certain
Access
that the companies which are or-
enable
a
do other financial insti-
to
to
will
funds
additional
to provide ad-
believe will bene-
us
Vestment companies"and" toa
ial-ger
degree
bosses/
many
small
''
—Tn
.
-
ibihw rnbrh«ri<:
r
menlion
'
xar
busi-:
recent
a
1
newsV"
/<■:'-.}•
-
.
him
want
it. out.
is
slipped out, the correspondent is removed. Most of the
one
time the fellows read the Russian
rewrite their contents.
United Nations
other
a
forum, yet
its friends as
ment
for peace
serves
it
a;
an¬
as
is described
great instru¬
and humanity.
•
Carlisle Bargeron
I At present there is an organized
for Eiscnhow">••:
! agitation on to set
up the same
er. Humphrey says he won't make sort of an
arrangement with Chi¬
it public and the President hasn't na. It isn't
enough that we be
done so, either because he con¬
propagandized to death by Russia.
skiers it unimportant, or because We should
give China a whack
he doesn't want to be a party to at
it, too.
some Humphrey propaganda.
secret message
.
Anyway, the statement that he
had a message and had talked
with the Russian boss for eg
hours was enough to keep Humphrey on the front pages foi- sevAll political Washipg-
er^ days.
GraHendm, Podesta
To Absorb McAndrew
SAN
FRANCISCO,
Calif.—
k^Mf^S^staS^
,
^
-
c
.
..
J--—
..
Eisenhower and were disappointed when it was not made
Public. ; >
vr;
'The pe.fo.'mancewascnouKl.
ing
firm
with
headquarters
in
.
])0rt concerning the formation of however, for Mrs* Roosevelt
a trade association of small busia Presidential boom off in
to set
favor
of the. Minriesbtan. ;She. said he
the best possible ditional capital or credit to a com- :ness investment companies whichtalents that are pany which it has sponsored, and ba<? been scheduled in New York hud the
The successful which enjoys the growth expected
city. I must confess that when r which
operation of an investment com- when the financing was first pro- first heard about this proposed as-'- should
pany,
havp fniinrf frnm niiv \AAnA TPVtie nnin + caavi-i c cn nKxrirkin/
J-.'. ■.
eiii. ii.ii- _U
u
i.^-
ganized
_
that; country
Russians
the
papers and
ntnumber « small business
should
company
them for the
If
chev for eight
hours and hit
the headlines.
sitiia-: Small Business Administration in- gave
the
of
the
in
The company would have $30,000 a year with which to pay sala¬
dures
work
* able
-
Access to Additional Funds
hold necessary
p r oc e
• ? ;
Khrush'
,
,
I assure a half-million
dollars ot
you that you are fortunate to have
and
surplus, earned 0%
on
it these particular staff members tell
without any losses, and made no you about their phases of activity
provisions for maintaining a re- under the program, since many of
serve
of any kind from its own you who plan to organize investment companies will subsequently
assets.
deal directly with these men.
'
help¬
as
•
mathematics
'The
ministration
-> •
with
of
out
comes
unless
Khrushchev,
uautucvj
according
to
large
about: the
enthusiastic
am
"•
/
.
We, in fact,, maintain about 25
newspapermen in Moscow for the
sole purpose of spreading Khrush¬
chev's propaganda. Not one single
I mean Day, and a
opportunities for smalt business in amounts exceeding" those men- worked on Saturday and over the;
financing that are offered-by the tioned in the Small Business In- vveekend in order to complete and
Small Business Investment Act of vestment Act as a minimum re- print
the regulations and have
tfuiicmcui
1958. And it is
' '
!
quirement for the. establishment them llcie- al this JllccUilg. AI1U
And
?
:
UlcIIl here at 1111b. meeting.
and organization of an investment
our
intention
aiS0) 0f course, to have them avail1
that
him/ It.was shown throughout the
u m-
phrey of Min-
on
morning.
worked
them
expense
televised conference with
a
,
as
1:30
H
bert
agency .went to the great
back home. But it to get
Hu-.
Senator
men
early hours
Most of their visits
summer/
are unheard of
remained
for
several occasions
on
morning
—one
savings and loan association*, brokerage and investment firms,
to be affiliated with small business investment companies.
of
time
the
-
,
preparing
Every Senator, it seems, at one is given prominence in the papers
or another gets to Russia in
of this country. One broadcasting
.
first
.
In
By CARLISLE BARGERON
matters
deemed
not
4
nificant when preparing the
draft. :
•
:
successful and some of the requirements it has to
meet, in view of the new small business financing opportunities
opened up by the Small Business Investment Act of 1958, are
discussed by Mr. Barnes. The SBA head stresses, also,, the
need for investment company to have access to reserves assets
of other financial institutions, and the advantage of banks,
company
of the -News
our
had
we
Ahead
we
had not made
some
we
intent- clear
;
to what might make an investment
as
that
found
•
Essential ingredients
In
29.
Oct.
T'.y
.
Administrator of the Small Business Administration
Thursday, Deeember 18,1958
...
have
management
spark
available to them.
Presidential candidates
uiade. .She made known
ot
greatness,
ot
studies
oTtodf from"private
ernmental
sources
or
from
or
"g^ ' to/; /re'/ttwr.reouiroracnls
both.
0f
course
for operating
knowtedee8of*1finance
iness
&busine^
management
rnanagenmnt
with all of its ramifications.
successful
.The
investment
an
Dn
dP
J jnvesFment" Company, "either
ment Act or
least
management of
also deto
a
dealing with
there
t0
e
pres.
u-
1,1
hls plans and' lf they
i
j
-n
are
running pell rtiell for the Presihasn.t ann0Unced it
since. dency t He
Robert
A.
Podesta
T
of small business investment com doesri t have the Rockefeller bilPanies, whenever organized, will lions but is a freer spender with
to
S.
David
'SSstVi/my
tho
»e pies
•
*
lTjlwml ent
associations,
^The a^BiSSeS®^1- '-3Ut ^ '"tete^
Sd'" ■CWcaW will take
to work »
^ ^ ^ Co., Incorporated,
asswiations rSrraenting aH
h^t fh^nemocretic
principles I have named,
ron-
all
in.ar^nvcust^ed jo.
otherwise, should at with
consideration
company
arfpssiniiuv
i
give
"h,.'>'hr«' win
built
/SvSmmW?hv ttw: Massachusetts senator who
suecGss-1'/
W tt'teew'We:
management of financial institu-
ST
a
Tucker
over thebusi-
&
San Francisco,
anoint announcement made
Robert
Pflrtnor
A
Podesta
frXSn
nf
l^Ianaging
Podesta
M
On Jan.
nancing through the equity capital
tional funds in the form of credit
capital, unless other draschanges are made, sometimes
in management itself." ~
new
tic
re
■
.
.
.
*/inTfSi
only
to
access
opportunities, it
a
j•
a
is
.
.
financing
likely to have
distorted view of what is worthconse-
quences through poor investments.
I know of one successful
company
has
carefully
examined
than 2,700 applications sub-
more
mitted to it and has selected less
than 50 in which to invest its
funds
that
I
this
do
not
ratio
is
,
mpanfj{a
to
irrvniv
be
expected
of all companies, since other companies may have other policies.
A
^
.
,
l ]0^.0S c^ reSulations with special?.ln,a oomber of fields, I have
general agreement, for a
v^rie^y
reasons, that it is to the
advantage of banks savings and
loaJ1. companies, and brokerage
and investment firms to be affili-
FC°m?-any ^aS ated^vith the
few
while and may suffer the
which
.
discussing the Act and our
route.
Frequently, a business
which is losing money will not
benefit from the injection of addior
T
investment
new
Small Business
Companies,
.
The °"1y disagreement
?ccV.r
seems
to
whe^ th^ specialists begin
discuss the advantages that ac-
prlv/te individuals in the
f01^10" °f » PomPany. I for one
^Mipve ^
definite ad¬
?rue
vantages to individual investors,
but here 'I Pr0,bably neither the
numbers within
a
few months.
Russian leader is that he held the
There is
John J. Bergen on
Pearl Harbor in "Navy"
r
Rear
head
J.
Admiral
of
John
J.
«
Bergen,
John
no
talkers
facile
gather
in
Senate.
the
He
town
on
up
to
lengthy
the Senate floor, then
his papers and head up
address
some
He
group.
President of
usually has something to say, too.
the
He is very
is
When he
the
States,
writing in
the
...
was
elected
Mayor of
Minneapolis in his early '30s, he
of
txmG nor th© plac© to discuss Mi, "Navy,"
seldom dull.
boastfully told his wife to watch
his smoke. He was going places,
December
issue
he said.
term
advantages that league soffiaccrue to deferent groups, cial publica-
de-taulthe type®
as
branch opera¬
a
Tucker.
speech
Navy
continued
the Senate floor, without repeating himself. He is one of most
on
&
United
be
tion of
has been known to make a
League of the
1, 1959, the San Fran¬
now
being con¬
by McAndrew & Co. will
business
ducted
phrey being able to talk that long.
He has frequently orated that long
Co., Ltd., New
York City, and
Bergen
hours.
question about Hum¬
attention for eight
latter's
cisco
in
tionably
He is serving his second
the
has
Senate
and
them
eating
Cruttenden, Podesta under
management
of
David
S.
the
Both men emphasized that sub¬
stantially all of the present staff
of
McAndrew
Co.
&
Cruttenden, Podesta
members
of the New
of
be
re¬
& Co. are
York Stock
Exchange and other principal ex¬
changes. The firm maintains of¬
fices
in
cities
13
in
49
commu¬
nities principally in the Midwest.
Head
office
of
the
firm is
in
Chicago
with
York.
branch in
New
:
:
a
.
.
.
.
unques¬
out
will
tained.
Robert, A.
Partner
Podesta,
•
;
Managing
of
Cruttenden, Podesta,
his hands back in Minnesota.
,mg
who is in San Francisco conclud¬
*n. Preparing regulations inter- Lesson An®
_on' on
He is tied in with oi'gamzed
John J. Bergen
of
ing negotiations, said, "The exten¬
It does, however, point up the fact preting the Act, we have sought
labor and the more radical farm
Pearl
Harbor"
and
the
sion of our firm's activities to the
future.
that investment companies must to develop policies which will perelements. He says that he talked
fast
growing and vital Pacific
select their investment opportu- raft the formation of companies
as.much as the Russian leader did
Two With Hill Richards J
nities with care, and what may
a good chance of operating
breader^etail" distributing faci™
appear to be a good investment, successfully. We do not have un(Special to The Financial Chronicle)
thing to me is that Khrushchev ities and fast coast-to-coast wire
in a person's original
judgment limited authority under the Act
LOS ANGELES, Calif.—Ray W. got in a word.
service.
may or may not prove to be one in .dm preparation of these reguStrangely
enough,
Humphrey
and
Robert
F.
Keitel
in the light of subsequent events, lations but must, of course, follow Caldwell
"Through a new, direct Chi¬
was
cautious
in
putting
out
It seems to me that another
cago-Hew York -San Francisco
have become affiliated with HiU K^usheheXpropag^da
-
-
sential. ingredient of
an
invest-
SetLC°av?flabilitvbof ^unrU^n
___
"~r-
•Fr«m a talk by Mr. Barnes
the American Management
before
Briefing-Session, New York City, Dec. 2,
1950.
cefved
on
the^^nlpH ^cr,nL+Jnl
objected to the statutory provisions
themselves
rather
than
to
.
Richards & Co-» 621 South Spring this country. " That is
~
more
than
wire,
which
also
extends
to
all
Street,^members of the Pacific can be said of four publishers and
our branch offices, we can effect
Coast Stock Exchange. Mr. Cald-
rapid service
correspondents. Periodically they
on
for
quotations of and
r,;gula"onf Tbe^ counts well was formerly with Marache, f^hVhev wWchi^Sdereda executions foand
our
customers
on
t
W1" ^ subJec|to further
Dofflemyre & Co.
nation
with Wilson, Johnson & Higgins.
as we
examiprepare future legis-
Mr. Keitel wafc journalistic triumph.
What they bofb listed
write about what Khiiishchev said rities."
unlisted
secu-
Volume
188
Number 5804
.
The Commercial and Financial Chronicle
,
2529)
starts, heavily conditioned by
be
un-
about
up
15%
from
the
no marked improvement
foreign tra<}e in the months
There is increasing evfc
dence that more of our products
suggest
certain political factors (EHA, VA,: depressed levels of 1958: All these
By DR. EMERSON P. SCHMIDT*
rate
.
$479 to $480 billion in 1959 and $500 billion in 1960; and
J- (3) revival in capital goods and auto industry would give
added strength to recovery, which give the expansion factors
Unlike
the
an overwhelming margin.
"prosperity has to be earned."
stronger
forces.
and
than
the
factors
Production,
1958.J
there
several
what
reduced
in^^
Product, the/
overall
Dr.
Schmidt
E.
tories to
of
activity,
This is $4
which
in
contributed
ancf'
in
started
quarter rate of 1957 ($446
billion) before the recession took
hold.
This
represents a dollar
improvement of nearly $25 billion
year
in
ago.
part
to
Unthe
growth in the labor force, was
still 1.3 million higher in October
of
this
and
than
year
earlier,
year
a
rise seasonally this winter
remain higher
may
in
to
..
costs and
Most
of
the
unemployment
is
concentrated in the manufacturing
Wmi
tv»
nnflv*
d
1
<■
/>
w
^
.1
upon
1956, jiist when the ne w? minimum
were
into:
into .,
wace/l" went.
wage.; went
effect.': Even :
effect.*; Even :
..though an increase affects du-ectly
only a small number of cases, it
of
the
a
c?
> /
«
>
known. Yet, it is difficult to attain than in 1958, they will continue
strong capital goods booih. Thi& Is, the 33%*
uncertainty
Manufacturers'
ceived
au^uuc
have
$26
prospects
appear
The F. W. Dodge Corporaexpects total construction
4/%
O Cr!
outlays to rise about 3% next year,
some.
tion
-hiiia
*
"I
il.
sector, primarily in durable goods
industries. Employment in manu¬
1
1.
.
.
*
_
billion
The
re-
upward
investment
•••..i
wage
and
fringe
in
Farm marketings and net income have risen substantially in
1958, running counter to the economy as a whole. While gross farm
income in 1959, may be close to
the 1958 levels, net income is
likely to be down somewhat, due
to increasing operating costs and
some declines in prices, particularly, hogs and, possibly, cattle in
the last half of the year.
re-
unabated. As redevelopment
move
forward, they lead to saleable
products.
Then
new
capacity,
equipment and, particularly,
modernization are needed. This is
bound to pay off in terms of new
products,
new
processes
which
generally require at least new
relatively
search
and
for
machine
government
fisCai 1959)
or
tools,
supply and stimulate; up-
money
W
.
"ents.
•
iP
...
_
Money and Credit
':
dividends, farm, business and
fessional
income, interest
ments
and, wage
rates,
rise of transfer payments
Exports from the United States
have declined considerably more
new
slightly abovothe recession low.
debt is ptting un-
likely to result ip
improvement
in, durable goods sales, including
automobiles. New auto sales should
reach
level
a
in 1959, as
million
4.3
close to 5.5 million
against
constitute
in
figure of about
would
a
19581 this
than; 25%
more
•!
.
:ntPr(u,t
rates "reaching
^
.
'
,'
,,
speed ot me recovery ana
discount
and
rates
rLiseTho £
stock
_
*
ployment
compensation,
OASI,
veterans payments, etc.) helped to
maintain total spending in the re¬
cession in spite of a drop of about
$9 billion in "labor income.""■
*
Personal Consumption *
Personal
consumption expendi¬
dropped less than 1% from
the prior peak to the trough of
tures
the recession and
billion
dollars
cession
peak.
now
above
are
the
several
pre-re-
Expenditures
largest
drop,
annual
declining
rate of
nine
over
from
an
$40 billion in the first
months
of
1957,
to
a
$1 of expenditures
for durable goods,
however, consumers normally spend
about $6
en nondurable
goods and services,
Expenditures
for
services- inevery
-
creased in every quarter throughout the recession. -Expenditures
for nondurable goods by the sec¬
ond quarter of this year, exceeded
therpre-recession
*An
address
Business
by
Outlook
Dr.
peak,
Schmidt"
Conference
d.
9, J958.
-
1957
even
the
.for 1 the
against
as
volume
to
1959
of
1958, for
billion in
will
1959.
an
increase
only
a
1%
offer to sell
nor a
solicitation of an offer to buy any of these securities.
made only by the Prospectus.
total of $52.3
But the gains for
be rather
Industrial
construction
in
All
major public
are
categories
expected to
12%;
sewer
of
is
share)
Price $6.50 per
share
\
.
be obtained from such of the undersigned
legally offer these securities in this State.
Copies of the Prospectus
as
may
may
Michael G. Kletz & Co., Inc.
Milton D. Blauner & Co.
Incorporated
of the
worth
them
per
go
projections for the private sector
by categories or types of constructioil
Common Stock
(Par Value $.10
and water, 9%.
The extreme unevenness
Corporation
of
up; in the case of public housing.
36%; military facilities, 16%; highways,
The Narda Ultrasonics
the
private sector may drop as much
as 15%; office and warehouse, 4%;
public utilities, 3%. construction
60,000 Shares
in
from
uneven, with
nearly 80% of them in two sectors
—housing and highways. Private
construction is expected to rise
about 4%, and public, about 14%.
The projections of the Architec¬
tural Forum prepared last August
by Miles Colean do not differ
much from these figures.
$35.6
billion rate in the second quarter
of this year or by nearly 12%.'
For
1958,
for
durable goods showed the
an
The offering is
construction outlays for 1959 over
dollar
noting; " about half
facing decline in 1959.
Hallowell, Sulzberger, Jenks, Kirkland
Aetna Securities
& Co.
Herzig, Farber & McKenna
Corporation
This unevenness suggests varying
degrees of unused capacity and
demand, and less than early full
recovery.^.
Since
expenditures
on
housing
represent nearly 40% of total construction, the rate of
new
housing
buying
...
_
NEW ISSUE
in
bot-
1115av..
■
.
possibility
increase
a
'
spring and early sum¬
mer
of 1958, has been reversed,
The demand for savings funds has
been heavy. The IU1F1UV^U atull
improved availakiiity 0f mortgage :money in¬
crease(j housing starts in the last
torn in late
n
^
pro¬
7%
im¬
provement.
The large and precipitous drop
than our imports. Imports have
requirements. If wage deremained relatively stable. Most man(js continue to exceed normal
of the major foreign economies productivity
improvements
the
have stopped expanding, and some
.
.-■■■
'
/wmaaIo/I
4^
oLaitt
c»HrrKf rlonlinn
vTViia utaiilrl
C-OtltWlllCCt 011 p(LCJ6 J, (J (
(a good barometer) is expected to show a slight decline. This would
pay¬
a
^
the' outstanding balance now only
physical volume and new
housing starts remaining about
same.
(Estimated housing
of
,
balance in recent months, leaving
machinery, ball bearings for producers
durables, and
the like,
have shown only moderate improvement. Tool and die volume
This announcement is neither
and the
(unem¬
_
Instalment debt repayments and
extensions have been Toughly in
,
starts—1,160,000.)
The Departments of Commerce
and Labor see (Nov. 17, 1958) the
increase of
(offl-
deficit
be financed In
may
to pre-recession inS consumer
■■
Other Factors
search and development has gone
on
The
cially estimated at $12 billion for*
slow down re-em- Wlth disposable income rising, a
Unemployment is not ; Pew period of growth ™ outstand-
ployment.
per
1957 levels. Unfilled orders are $8
However,
November elections
the
at pressure will
running
$27
in
the
The maintenance
in
approved,
mw«
with
facturing (October 15.4 million)
is nearly two million below 1953.
•
been
to
orders
new
e™ent' " "0t "CW
at least not trouble-
or
1959.
to $9 billion below a year ago, the
decline being found almost entireThe key economic indicators of
ly in durable goods. Manufac- the National Bureau of Economic
turers' sales in October were still Research point upward, but do
2%
under
the same
month in not suggest an early resurgence
1957,
of boom conditions.
/
Orders
Construction
for
liquidation month, about $3 billion above the likely to drop
recession lows, but still below levels in 1959.
over,
more
is'^hot^^hfle h^prbfUs ^*ilLbe_higher :;This would tend, to increase the
/195". Thfli
some
for
increase
WagC ^ part, commercialto banks,
than up
W
through the
fi^^sioir decline will be
195?" Perhaps, the "greatest ' element i of/ hsed1 by labor leaders- to wrest
Construction
u
favorable,
sector of the economy; and in that
.
the
political uncertainties.
1959
force.
.
hv
cnntUin
rebuilding of
inventories in 1959, thereby encouraging some re-employment.
The major doubts for 1959 run
in terms of expenditures for new
plant and equipment, the automobile industry, the rise in labor
cent of the labor
as a per
*,
„
economic about
j
incomes,
October
than in 1955-57 both in the aggre¬
gate and
Index, it started to rise in March,
and
concen-
near-term 1 expenditures
ventory liquidation is about
a
Delaware
in-
There will be
due
the
the
Total employment exceeded 65.3
million m October, about 750,000
October
in
Greatest Uncertainty
low.
It will
11%
«ow much idle capacity we now
have or .what, it may mean for
liquidation reached ari annua! rate
of over $8 billion in the first half
of 1958, accounting for much of
since the first quarter of 1958.
the unemployment and decline in
Personal income, which declined labor and other income. Its influonly from $351.8 billion to $347.3 once spread from manufacturing
billion (annual rates), or 1.3%, is through transportation and much
running $12 to $14 billion higher of the remainder of the economy.
now than it was in the
recession
By now, it appears that the in-
below
and
mpv
is
will
the year ahead.
in
„
inventories
protection
the world
evidence
Lehigh'. Valleys--#-heavy
peak of $91.3 billion in
and September of 1957,
activity
billion above the
peak
employment,
increasing
.v
some-
of
end
tariff
The Federal Reserve
raising the legal minimum creased by $3.8 billion, rising to
Philadelphia projects 14% wage from $1 to $1.25 or $1.50. a $49 billion rate in the third
manufacturing invest- After
three to four years of quarter of 1958. About 75% of the
ment in metropolitan Philadelphia stability in the Consumers Price dollar volume of bond issues voted
decline
a
August
is
currently
$450 billion annual
a
the
are t>e*hg priced out of
markets.
The demand
Bank of
inventories b^gin-
close
'«&*■
A modest Jarger .concessions, although
most
volatile
comnonent
of
or.?'but steady rise in manufacturers' everyone knows that wages and
our
p
orders and sales in the months?wage increases,:are paid out of
economy;
it goes from plus to
ahead would dissipate this cloud, sales and not out of profits.
minus. After a build-up of inven¬
National
running at
anu
is
of
exnlained
■*
Labor and Wages
The possibility of a steel strike
next July will induce considerable
first
an
much
i*?'months^ aVn ^iiA
Investment
Gross.
rate.
miia
thin
severe
be
the
investment.
the
thomrh it
recession,
can
in
oirecovTvy ^ Iralion o£ divcrsifted activity.
even
liquidation of
hiri*
economic
more
decline
.
a some- /
measure
was
'Thereto
ventory
is
continuing,
best
recession
thine-
.
but at
rate.
in
of
Whi" havJbe™t
started >:
-
quarter
month
n™
The
Apri,l
trough
been vigorous
re.cove r y
last
second
the
recession.
short:
are
tive factors to
which
the
eluded
The
^nega¬
be noted.
though
Concludes
Currently, total conemployment sumer expenditures are running
about $5 billion above the pre¬
vious prosperity peak.
should rise 5 %j
But
are
contractionist
incomes
abpve
this time,
year ago at
a
expansionist
construction
,
our
steel inventory building, particuTotal government (national,
that
the
decline
in
plant
and larly 1.n the second quarter. This state and local) purchases of goods
equipment
expenditures
(from may Sive a false sense of boom.
and services have increased from
$37.7 billion rate in the third
Strikes and labor turbulence are a $87 billion annual rate in the
quarter of 1957 to $30.3 billion likely to increase in 1959, par- third quarter of 1957 to a $93.3
rate in mid-1958) is tapering off ticularly, if recovery seems firm. rate in the third
quarter of 1958,
and, possibly, bottoming. It is not Wage and fringe settlements are and will continue to increase at
clear that any strong expansion hkely
to
exceed
productivity about this rate—$6 to $7 billion
will be experienced in this sector improvements by a wider margin
1959—a good share of which
in
1959.
McGraw-Hill's
survey "than in 1958, thus giving another wiu t,e spent on
construction—
projects a 1% rise for 1959, but a thrust to cost-push wage inflation., already mentioned.
In the past
decline of 3% in manufacturing There is. considerable political talk year, state and local purchases in-
(1) expansion will continue in the period ahead;
(2) GNP should rise by $25 billion to reach a new high of
bat not by
of
There
assumes:
edge
:
tend td move with great volatility
and will be watched closely.
/
half of 1959.
Businessmen's economist realistically weighs and assesses the
expansionist and contractionist forces in the economy and
an
ahead.
A fair guess is 1.15 to 1.2 million
starts for 1959. But the high starts
rate after mid-1958, assure a high
.
Director of Economic Research,
Chamber of Commerce of the United States,
Washington, D. C.
ih
FNMA, etc.), is of key importance,
r.
13
Maltz, Greenwald & Co.
Stanley Heller & Co., JRoman & Johnson
December 17, 1958
.
.
.
,
•
..
.
,
14
wThe Commercial and Financial Chronicle
(2530)
before, they fear one anothei;
ever
The
single customer for agriworld." \
largest
less, and are more tolerant.of for- cultural products in the
eign ways. And no one can tell / ! Tne
estimates
Enropean Common Maiket
Thursday, December 18, 1958
....
the Common Market
the Free
.or,
Trade Area. Greater self-reliance
in Europe will reduce Europe's
that the
what far-reaching : influ-, agricultux al imports of the six ^dependence on the U. S i A. and
radio, television, and even countries in
1956 amounted to'vscrve
as
a
stronger
bulwark
visiting soccer and hockey teams $9,20u,000,000, or more than one- against Russian encroachments,
'have had on national mores and. quarter of the total world figure.
Increasing the political and ecotoday
And American Business
ences
By ARNOLD R. BEARDSLEY
.
'
..
attitudes.
Manager, European Operations
Ebasco Services Inc., New York
'
on
Western Europe : outlines the huge potential
opportunities for American industry and commerce rapidly
evolving in new economic group movements abroad and urges
Consultant
-
'
American business to appraise
kind of economic competition.
.
the .street has
selling
world
Atlantic '• Tr
./V
■}
atomic
.
Common Market
officially desigEuropean
Economic
Community is a postwar developnow
as
or,
meht
"'T'/v
energy.
gium, the Netherlands, and Luxembourg. These three countries,
.
^
;
.
._
•
to
-
trade
and
in-
commerce
in
national
boundaries,
tariffs, and other factors limiting
herent
assistance
ices.
They proposed to integrate
their
national
let
of
goods and
economies
serv-
to
and
integration
with other European countries belonging to the Organization of
European Economic Cooperation
Economic^
(O.E E C.). Then
one
after another Germany, Italy, and France
adopted these trade liberalizing
rnnppnk
Ttnnlipit
in
nil
concepts.
Implicit in all thpir
their
thinking to pool efforts, talents,
the
promote
idea
financial
and
of
assistance
the
was
determination to cooperate in the
fullest sense in the development
of atomic energy
dustrial purposes.
pooled
for peaceful inThis organized
is referred to as
effort
Euratom.
fully
now
cognizant that self-help
its most, imperative need,
World
events
The
are
is
(3)
for
pnum-
cally
rent
backward
"
in
the
Near
—
Economic
pean
fUn
"Cnrnnhnn
the
A fniviio
European
Community
being.
the Euro-
Community
Atomic
officially
and
Energy
into
came
Businessmen
indus¬
and
trialists in West Germany, France,
1 i1
J 1
Italy
and
were
i^
»
the
Benelux
'
countries
mentally well prepared for
this
official
countries,
II, had
gcther
step.
The
following
fact
in
as
an
already
economic
War
to-
come
unit.
owing this, in 1951, the six
Folcoun¬
tries, with
a
consumers,
had put ipto effect a
Contrary
to
been
162,000,000
widespread
misgivings,
taken
benefit
of
market for coal and steel,
common
and
total
of
these
doubts
steps
successfully
all
six
a
had
the
to
countries
i
xi.
(6)
integration
has
taken
standards of living and wages.
A
rough idea of this is given by
comparison
of
the
tapita share of the
annual
gross
p,
per
from
ug
m
$450 in Italy, to $1,200
Luxembourg,
•
rnn
sz,50U
the
in
The
speed
U.
of
peans,
and
losses
S.
than
•
program
even
certainly
observers.
by
less
of
this
is
not
Euro¬
so
by
in
underdeveloped
S.
A.
There
is
longer
an
/
Belgium
will
be
overseas
no
and
under
'
a
effect
A
market.
European
lected
productivity
many
teams
thousands of
and
Other Nations
and
by
ignored
be
»
,,
kind
this
of
cannot
;
•
neighboring
countries or by the
large. How will it affect
world at
se-
mi/4
industrialists
oil
movement
magnitude
144-4-1«
labor
a
4-—4
-
or
Switzerland,
or
i«?tratinn
istration, have r!ti J?1*
returned from the
oth^r EVroPJ/an countries not inc^udedits weight? Will Germany
m
.eufix\,r.?1a^ Fr&nce
carry
U.
dominate
f
S. A. to their
own
countries
'"3• that
nnrifv
How
Market?
will
Can Europeans really forget their
rivalries and animosities.
°ductivity de- old
and
market.
They
And what does the U. S. A. think
about
it?
These,
and
similar
a
recognize
'enn„nnt^v?ff ?^*maSf ^10~
f0?\.^be mos^ Par^' Pfr.7
without mass mit no definitive answers. But it
ave
contributed
d
market*
and
contributed
Europe's
knowledge
greatly
to
and appreciation of what make
living standards in the U. S. A. the
highest in the world.
Another factor is
is
the
^ afJect the United Kingdom?
ic
mandPd
mass
a
no
longer
To be sure,
a
"tourism."
privilege
or
a
It
cus-
.
appears certain
that the principal
countries concerned
to
.
are
.
.
Food
,
and^ the solution of prob-
lems with the passage
A
prepared
trusting to positive
ahead,
go
results
recent
and
in
un-
it
meeting
a
October
ol
that
appears
oofAnnAnn
,
growing demand
a
£rhnowv and methods
'uSA; Similarly,,in. this
from *
con-
P"".-
study
of time.
made
by
'"president 'of^'the
dS "
Board
of
and
Trade
®
a
member 0f the British Cabinet, on
showing an accelerating rate
are
o <
T_
recognize not only the advantage
of being able to export -from Europe to world markets at prices
morev favorable
eventually
also
but
U.S.A.
the
from
deriving from
advantage
than
clear
a
an
ex¬
.
1Q-ft
Franni«rn
-
tross-pollination of ideas between
and
Tn
llr,+ovr,QT.t<a
European
thic
American
their
rvmnontinn
tnTte thT
to note that,
d maY be interesting
SesS nrcw^ing^^an&om
of the USA
meraei.
the
S S—//n !
British
Commonwealth
of rNa
tions, and all of Western Europe.
the
Whatever
he
be,
motivation
ethnical
etnmcat
new
new
may
economic
economic
and
and
groupings are the order of the
day. In rapid succession, we have
heard
South
panjze
lines
of
movement
a
American
a
Common
simiiar
model;" next
among
countries
Market
or-
along
the
Eurooean
h
little
countries
to
the
to
and isiands Gf the Caribbean are
federating to form
a
vpHpratioiv
finallv
Cairo
it j
and
'reported
West Indies
from
that African-
1947 to January 1958 in the
Netherlands alone, a total of 106
American companies have erected
plants,
owned
them
of
70
as
and 36
subsidiaries
wholly
in
co-
(»vucu wu»iuidu» mm ^ iii w
operation or partnership with domegUc Netherland
Another
and
compdnies.
development of recent
is
importance
growing
the
financing of research work in Eu-
instead of bringing European
scientists and technicians to the
rope
yt
r<
a
U.S.A.
A
widely
read
magazine reminds
pmat
fn
chanee«?
world
international
that two
us
taken
havp
in
trade
nlace
^ars
recent
Asian COUntries are promulgating
The first, Russia
common market to offset what
they consider to be an economic
quantity during the 20's and early
30's—is now emerging dramatic-
a
thrpat
from
the
Furonean
organ-
nllv
a<?
a
maior
—
an
unknown
nroducer
threap from the European organ alolyea^ a Thi Se^nd
These
world-wide
movements
f0ward new economic amalgamations clearly call for constant appraisal by American business interests.
They may well become
battlegrounds for
fierce
new
a
kind
of
economic
S.
A.
and
and
warfare,
the
Agricultural Organiza-
American investments/in "Europe
change of technical values and a
/->««
„
little Austria,
^
Thus,
year.
BrUish
of this movement,
Revolution.
Effect
nations
17
A."ids
revolutionary, and
Spaak of
Spaak of
that the historica
creative citizens.
trade
the
this
Minister
NUnister
v
common
to ;the
not
was
consumers.
fortunately, minimizes the fear of
international
It
-
pected to follow from
I
that of the
Thus, in effeet, the six countries will become
a supra-national entity with 162,000,000 intelligent, discriminating
pressing need to take up
unemployment slack. This fact,
intensified
orv
the
form
unacceptable
°lU SlgniS may P
greater than
French
a
competition
b
....
for specialized industriaL^-machih-
til July 25 that the deadlock was of growth.
Leading American
broken, and full agreement is ex- companies with plants in Europe
resoufebshf
tv.*;
says
economic
virtually
full employment and therefore
fnr
cou^tries^H1®'; cpmmonmarket of 285,000,000
member
far-reaching
far-reaching
standard 0f the average
family is higher than ever before
and rising at a faster rate than in
U.
nower
fundament'al,,
living
the
to
£?roun
of
oih
before, and the
ever
>
A.
aP
European countries today are betoff
nations
;
Pree Trade
new
vest
Also, it should be observed that
ter
large, :<faSt-growing^market f will
need to be fed by a greatlY increased domestic production sup-
x
nmorom
provisions
areas.
and
/t
..
.
•
to ameliorate unusual hardr
and atomic
outweigh temporary
displacements.
*
and
®
^
19al,
tk/
•
European/econ-
°*
a
over-a11 ^eneral welfare will far
a
evolution
understood
American
compared with
o
market
common
well
as
tt
y?
.
all
Create
rope,
ac¬
gross national manded and made possible by
products of these countries, rang-
.
complish this, convinced that the
a
national
U
P°o1 to deve}?P industries in Eu-
.
a
place
with couniries ot auite dissimilar
countries of quite dissimilar
-
(8) Last but not least; to inte¬
grate and develop the electrical
lpntorl
this
Make
(7)
.;
their
personal and national loss to
comprising
It should be borne in mind that
.
mblds
convertible..
And apparently they are prepared
to pay the price if necessary in
con-
rerned.
i
i
that
lher<r seems to De no?aouDt,m
tbe
anotherf^f Community (E.G,.S,E.) in
needed.
will
of
part
1948
Euro-
P U)
Coal
European
^-JL': 1? ?,
^conomto ?11,lps suffered ^ companiesunder
..c n m c
the
conditions, and to in-
ofams
in
'the
ti
td
Union >(E
Europe
of
become
mavket
•
East
10 European countries xnai tnen
Benelux
World
that
led
markets
best
do
Economic ,Co-
.
.
like to enjoy the huge and
growing
the Organiza-
harmonize r..; The
prospective program for
Equalize
wages, fringe benefits and social the , integration; ■ of
the above
all demonstrate
countries
EuroDean
would
omists and industrialists that this
move
luu
,
that American business which
ous
led
which
1947
(O. E. E. C.)
tarn
in
Payments
will find
going rougher in other partsof the world.
It is quite obvi¬
the
the
(5)
affecting the flow/ of fuel to Europe; the disappointments of the
United Nations
uiic
where
•
This year, on Jan. 1,
which
bteah
'benefits ih the member-countries.; groupsof
recur-
countries,
difficulties in
of
European
operation
government
where needed.
economi-
"
Plan
for
tion
do£bie/p*i*irtg^
tfidfe;5*: Cusfo^
to
freely
1948 ?nd the
Permit labor
\ '
XIUJII
in
Common Market closed to its
npan
this
supports and
export.
(4)
the risnationalism
and
started
to the formation of
>.;/
all
,
berations of the cold war;
Marshall
to
with
contribution
development
import
into the
coming
lviarKet.
Market.
domestic and
double advantage
a
ma^TuTed goodrarid
Eire, Iceland. Portugal, Greece,
Turkey and, perhaps/Finland.
uniform
Remove
prJce;
aggressive
spirit
of
independence
Market—and those less intimately
American
goods
on
that there; is
related geographically, namely,
of the plan
puropses
Establish
far//enough;/ For
go
a>
Similarly
Remove
Common
;ommon
major
ing
may
follows:
as
duties
political,
producer, and a
^11
exporter"; all the reveran
as
main
(2)
,
rapidly
changing pattern of international
politics such as the emergence of
force, a
rtrrmiinn
growing
Market
the
all tariff- barriers
between the six countries.
.
Russia
*
-
/
(1)
the
and
within
,
Free
Trade
Area Europe: -one, the -benefits - of/ a
comprising a total of 17 countries large fast-growing market of 162
and 285,000,000 consumers.
The fcto 185 million consumers, and two,
other countries, additional to the ' the
advantage
of exporting to
six/comprising the
European world
markets
from
European
Common! Market, would be the plants. As expressed by an execuUnited Kingdom, Denmark, Swit- live of the Ford Motor Company
zerland, - Austria,
Norway
and before a Senate House Ways and
Sweden—constituting those coun- Me^ns Subcommittee on Foreign
tries geographically or economi- Trade and Policy:
v:,/
cally contiguous to the Common
»pjlLe U.S.A. may find the Euro-
they are comthat, by 1970,
of any kind manu-
hindrance- and
or
not
proposes
so
with labor.
timely and generous help, and is
flow
it does
national boundaries without
cross
_
to the Common Marketbut dhinks'^/ Some companies now recognize
to reduce tariffs pro-
merchandise
Marshall Plan, it is certain that
the war?s aftermath would have
been as devastating as the war
itself. Europe is grateful for this
the free
nlnrinsf thp nrnfit nof.pnti'alitip* tvf
effort/mustjtfi is/reason,theUnited Kingdom accruing to'them by producing
Common Market
factured
the
under
daii-
,t»-» •«i-»«-
M
The plan proposes, over the next
12-15 years,
II left Europe
economic
....
appreciates-that
aim and
gressively until
pletely removed
'
Twelve years ago, World War
— victor
and vantoms
Union, sought to abolish quished.a 1 ik e —decimated and
among
themselves the barriers bled white. But for speedy U. S.
the Benelux Cus-
happily termed
common
;
-Contributing Factors
-
t
The Master Plan for the European
Today this
_
.,
nomic strength of this important
A
ai
extend into the economic" and politieal fields.
concept is unfolding with surprising rapidity, and businessmen, not
politicians are leading the parade,
'
in
He
■
the pattern to follow.
originally initiated by Bel-
r\f'ririhi4of ww ^Vi-i
t y-
forces, is only one'part; bf
solution.
the
modern mass producundertakes pooled
to
™
'Agreements, ltQ/r dnter.T; 3htd/-#ie>hew;. plants or venlarged exisving
MatketiAs^ c^^tuted^plafnts-. in "Europe/ OtJKers are ex- 'I
even
that
seen
e a
effort
defense
armed
the
free competitive system and
;;
The European
it is
nated, the
shifts
as; Europe
on
*
„
(NATO), organized
;
favorable than from the U. S. A., Mr/.!
Beardsley depicts need for large amounts of capital and other
tion based
condemnatibn^oi-if.
^Logically/too,
markets at prices more
-requirements
:
■
,
'
f
*
European Free Trade Area
She found itdifficult, IpP'account :.y--Many leading American- com/
-Of
her; -Commonwealth ;/tr a,d e panics, since the war, have erected
well
communist*ais
European
by Soviet
by
as
constantly this new and fierce
Besides indicating the advan-;
tageous position of American plants located abroad in
within this fast-growing market and in exporting to
the
.
'
r
■'/-.■>'/;/•/%-% "'L.'
rapid devel- * ./he
rarca 0f the free world will reduce
the financial burden* now cairied
Eu/^-by the. U. S. A. afid also afford
fear of Russia and by RuS&amrferppeanCom%)n;^arket^||id//tt^mew! opportunities rif ar .foreign
sistance to the plan, as evidenced i^e same time, an ecbnbr^ic'threats trade. / '
Undoubtedly,
opment of the European- C<j^bh'-/!/'?The'^Jnlted- JKihgdemMarket
has been
motivated• /by-,'djgnized/grea'^prd«»'ise-ltt--itte
The
U.
the
prostrate
a
and
ago—is
decade
ex-
Europe-ex-
panding its economy rapidly and,
collectively, taking decisive steps
to safeguard its progress. The nations of Europe are prepared to
take real risks to restore the ideal
of free enterprise, sound money,
and the profit motive.
Common
Market
ttpm of only the gentry and The tionTfThe United'Nations' mayTe
Population and Trade Statistics
it
was
a
dream visualized
The typical American reaction
long rich to travel abroad. Today in suggestive of an awakening apThe Organization of European
ago by Victor Hugo and later
by
it: is also tbe student, the preciation of this new market and to the Common Market program Economic Cooperation forecast^in
many
forward-thinking Euro- but,
f> ,the baker> and junior-its potentialities. The F.A.O. says is' one of general approval re- 1955 that Europe's Gross National
peans and Americans who
S
0 arJercros?ing national that, contrary to widespread fears fleeting a positive answer to the Products will rise 80% by 1975.
advo- boundaries and learning to appre- .in countries outside the Common common — if superficial — ques- From 1951 to 1955 it had already
^
k
.
,
cated
to
.
.
such
union
as
the answer
Europe's age-old quarrels
.bloodshed.
•
.
a
And,
naturally
and
the
ciate
the
good, though
different,
They
(3uanties of the foreigner.
have
a
this
development
beneficial
an?ag°nistic in spite of porting countries;
ILS
A
iJtunrr Jm-L .! &eir blstorlc rivalries and wars.
y
P as
Knowing one another better than
was
Market,
"The
creation
effect
for
will
ex-
tion: "Why don't you folks get together instead of cutting one an-
and continues— other's throats every few years?'*
of
the
Common
Market has brought into being the
And, officially, the U. S. is
pathetic
to
the
sym-
development
of
increased 27%.
T.
.
TT
Q
npnartmpnt
/ODUiation
of
nf
the
glves tbe P°Pulati°n of tbe
Continued
on page
six
108
Volume
188
-'Number 5804
.
.
The Commercial and Financial Chronicle
.
tivity and enlarged tax revenues
can work to reduce the deficit.
In addition, the
monetary authori3? -ties are alert to the need for antiinflationary
measures.
Furtherr
J. P.
;
By HARRY A. BULLIS >/.
K./.V
;
Chairman of the Board, General Mills, Inc., Minneapolis, Minn.1
A food
industry leader envisions
banner
a
>
for overall J
year
economic
activity and for the food industry'in 1959., The ;
recovery pace, according to Mr. Bullis, will depend upon pub- j
lie's acceptance of new autos, new houses and "availability of ^
•
the
>
and
action
v
have greater popular support
and increased plant-equipment expenditures.)
vP'*.P.:
Doubts causal factors behind price rises in 1956, 1957 and The
mortgage
,
money,
:
1958 will be present in
1959 and 1960, and notes better under?
•.
.
months
has
ment
will
>
carry
indications
outlook for-the food indus-t
tional nrodUc-
tion:'' of-';: eoods
-
the
1958 Twill
the
good augury/for ;195£P->P/P op<mr
mark reached
largely
'
the
vthe public
upon
of the-new
ance
s
acce^-1^prpve
automobiles, the,
money,
optimis¬
tic enough
believe
to
plant
that
this
improve-
ment
in
output
will continue
first half of
entire year
ner
together^with. increa^d> an(i
™nd
Jpmem
eq
vqu.p.i.cu..
Harry A. BullU
;-
—
S m
ice"
r
demand
time saving, that
in/prepared
which require
"
Inflation
T
the nutritional quality of
^ the
for
diversification in the diet, and an
of the; convenience
houses
new
third
quarter of '57/-"
am
.dynamic economy which
tteW mtmihs''ill"dewind: W* desire 0f thelivi,,S- Third
he
standard of
months
ahead
will
depend is.
the
housewife to
pre-•
-
1
ot£rntJ%T
innew?? plant
off
sur¬
yious high
in
H
fourth /
quarter
pass
oV.
and equipment -is highly imporProspe nty in the food busitant to . economic progress.•' The ness- . First
is the growth m
fact that?;, ?" a -/turning point , was * PORRktwn—more mouths to feed
reachedvbefore the end; of 1958 is >e.J?ry ^e^r' Second is the growth'
and;^rvi^ea
in
•
was no
thf vtor
^
that'eross na-'4'ffifMMHBBBHBI :
'•
I '■//
The rate of
the
v:
are
-
'
•
equipment***business. In .
second4total
I5;!* of: the,
1958; andthe
i? 8^
?n dol-,
an<* third quarter of
improve-i the fourth quarter.
into111959. The capital investment
and
will
Food- Industry
brightened perceptibly in the past outlook is for, a small increase
three
that
new plant'and
appeared to stabilize in the
outiook
economic
well,
p T cllue and as a result there
w.
tures for
"Greater Minneapolis"
/The
/./
so
inflation
as
control
tlhped; td spend liberally for food
during /the recent economic de-
;/*
'Cyp/p December -Issue of f
public
.to
of New
try /is excellent. I Consumers con-r""
standing and opposition to price inflation ,by >both the. authoritics "and -the public.
V'T-::P \,i..
;
i
Cleveland, Chairman of the Board of Guaranty
York, and Henry C._ Alexander, Chairman of
J. P. Morgan & Co. Incorporated, announced that at meetings
Dec. 17 the boards of directors of their respective banks had
Trust Co.
} understood by both the authorities
I
Morgan Go.and Guaranty Trast
Luther
J.
the dangers of inflation and
damage it can do are better
more
the
a
comes
nuxes
and foods,"
minimum of
aration in the kitchen.
:
from
prep-*
-
-
.
unanimously approved plans for the merger,,of the businesses of
the two banks under the name Morgan Guaranty Trust Co. of New
.
reduced.
one.
The recession of 1957-58 was
the shortest and the most severe
If
Took
;we
the
over
vesting in better facilities to give
record of price movements during
the past decade,
more
J. Luther Cleveland
C. Alexander
Henry
While/the forces of inflation
The food industry is intensifynext year and that the are
a
threat, the prospects for ing its research to develop new
ahead may be a ban- rapid price rises
appear to
be and improved products. It is in¬
through at least the
m.
Hfolders of Morgan stock will receive -4%- shares of stock
institution for each share now held and holders of
Guaranty stock will receive one share for each share now held.
York.
efficient service to the coh-
of the merged
find that the. Suming public and preparing for
of the three postwar recessions.-high prices of/1948 were caused the
huge potential growth in the
Its duration from the high to the by the war,- that the consumer years ahead.
•
•
low was only about six months, price index actually dropped 4%*
,
v
V
: •
,
and the decline in total output of between 1948 and early 1950, that
• >
Conclusion-.
goods and services was 41/2% and the impact of the Korean conflict
3 We are making progress in ecoamounted to 20 billion dollars.
>
caused prices to increase 14% by. nomic understanding and the outwe
.
Henry C. Alexander will be Chairman of the Board of Direc¬
and chief executive offices of the merged bank.
J. Luther
Cleveland will be Chairman of the Executive Committee. Messrs.
-
tors
H.
Davison
P.
Vice-Chairmen of the
President.
>
S. Lamont will be
and T.
,
'
tftr
Personal Income and Expenditures
The
,
income
maintenance
of
personal
at
portant
a high level was
stabilizing factor
.
an
lm-
which
helped to limit the recent decline
«ind
were
speed recovery.
Wage rates
kept
high,
even
though
business profits declined. By July
of this year wage increases, inin
pay
for 'government
the rise in farm income, combined with the increase
in
unemployment
compensation
creases
employees,
payments, had sent total personal
early
that
1952,
juice
index
the
stable
was
Board of Directors.
It
consumer-look ahead for business is good.
for four
V
Elbert A. La Hue Opens
sTnce^e
r>ATTT
i\/ri
P1.
ST. PAUL, Minn.
-
i.
•_
A
The
Elbert A.
T
-
.
tremendously high demand by rjties business. Elbert A. La Hue,
business for new plant facilities., proprietor of the new' firm/ has
This placed enlarged incomes in-been a partner in Smith, La Huethe hands of construction workers-^TV?.J ' ;
; ' ) *
with a consequent increase in the
r - p
Ll'f 'D • J D
' i
demand for: consumer goods. At- . IvODert Daird Drancn
the same time it stimulated a ypry, ^5 MARINETTE, Wis.—Robert W."
subject
will
institution
merged
in the U. S. A.
•:
result
a
consumers
continued
to spend for the goods and
productivity
and
the,
CHICAGO,; 111.
John K. Baronett is engaging in a securities
resuh was higher prices.
Thus it appears that the
—
expan- business frpm offices at 176 West
ices they wanted, and total com, sion of credit and income caused Adams
Street, .under the firm
sumer
expenditures fell by only the price rise of 1956 and 1957. name of The Mid America Secu2 billion dollars during
the re- It is the price we paid for a rities Company,
cession as compared with the 20 period of sustained plant expan-;.. ,
.
>
.
billion dollars
serv-
>,
sion. The more modest price rise=
in the first half of 1958 was caused
largely by the adverse weather
level and beginning to expand in which sent prices of fresh fruits
the second quarter of 1958, it was and vegetables skyward, and the
necessary for business to expand high prices for pork and beef bedecline
approvals of the
have
capital
funds of
over
■■
Fahnesfock To Admit
Bligh and Wilson
-
Newhard, Cook Admit;
Three New Partners
Broadway,
Fahnestock & Co., 65
#
in
creases
requisite
.
well
above
the
record high demand for money, including Baird - &
Co
Incorporated
has
New York City, members of the
high reached in August 1957.By enlarged ibank Tcredit.; vWith the, npened a'branch office at 1800
September 1958, total personal in- new plants'and equipment not yet Hall Avenue under the direction New York Stock Exchange, on
come was 5.4 billion dollars above
in the producing stage,1 the ecoh-„ of Edward A. Kuich, Jr. - - •- r Jan. 1 will admit Robert A. Bligh
the high mark ;of a year earlier omy was strained,
increases in . . .
■
,
.
and 11 billion dollars above the wage rates: exceeded general inand Clifton W. Wilson to partner¬
Mid America Securities
February 1958 low.
to
$500,000,000 and total resources of approximately $4,000,000,00Q,
making it the third largest bank in New York City and the fourth
Associates. is being
The cause of the 1956-57 price formed with offices in the Pioincreases is found largely in the^^ n.®?r Bundmg to engage in a secu-T
creased **%.
that,
planned
Superintendent of Banks of the State of New York and the Fed¬
eral Reserve Board, the merger will be submitted promptly to
the stockholders of each bank for their approval.
<
-
.
Prices tell //0, and tnat since,l9ot>
the C01?s"]3ier P^ce, index has in-
is
Dale E. Sharp will be
income
As
45
^2531)
ship/Mr. Bligh is resident man¬
the
Torrington,
firm's
ager
of
Conn,
office, 127 Main Street.. Mr.;
Wilson is manager of the
Hartford
office, 75 Pearl Street.
.
-
ST.
LOUIS, Mo.
—
;
On Jan. 1
Newhard, Cook & Co., Fourty &
Streets,: members
of the
Olive
.
Midwest Stock Ex¬
changes, will admit Edward Senturia, Joseph L. McDonough and
New York and
Edwin Levis Jr. to
partnership. ,*
Harris, Upham Adds '1
(Special to The Financial
Chronicle)
BOSTON, Mass.—Allan F. Bruen
is with Harris, Upham & Co., 136
Federal Street, =■' V
-
in
producand services. With
consumption maintained at a high
tion of goods
production.
The reduction in in-
ventories called for
The
index
of
tion
shows
an
month
during
through
cline
of short pig
and the
crops
increase
the
inventories
_
in
every
period
and
the
appears
to
Filtrol
Rise Resistance
The causes of the price rises in
de¬
1956,
1957
and
1958
not
ex¬
1959
and
are
pected to continue
Federal Expenditures and
Capital Investment
we
is
effects
forward, the econand more feeling the
move
more
of
the
30,100 Shares
:
.
Price
May
Federal
Govern-
into
1960.
As
.
All of
need for rebuilding herds of beef
produc- cattle.
,..
have stopped.
omy
secondary distribution of the securities listed belozvJias been completed by the undersigned.
these shares having been sold, this advertisement appears only as a matter of record.
replenishment,
industrial
September
in
cause
A
resistance
pears
Rather
to
have
there will be
of
goods
creased
ing
the
some
Common Stock
ap¬
($1 par value)
A?
The
flowing
adds
T
a
Furthermore,- business expendi-
large
,
-
increased supply
from
the
in-
two
Price $43V8 per
coupled
ment's program. This includes as- with
enlarged productivity * per
sistance to housing and highways, worker.
Second, the experience
a small
cut in excise taxes and of the past two years has demonenlarged- defense spending.
All strated that there is a limit to the
told the program adds up to over point at which prices can be in6 billion dollars, of which only a creased to compensate wage insmall portion has as yet gone into creases in excess of productivity
actual production. The effect will increases.'
of 1958 and the fust half of 1959.
/
developed/* First,
an
plant facilities built durpast
Corporation
share
years,
government
Cruttenden, Podesta & Co.
209 South La Salle Street,
NEW YORK
to the fear of inflation, but
decided upturn in business ac-
DENVER
GRAND RAPIDS
deficit
LINCOLN
MADISON
ST. LOUIS
r
Chicago 4
INDIANAPOLIS
CEDAR RAPIDS
ST. PAUL
OMAHA
MILWAUKEE
FORT WAYNE
.
mmk
The Commercial and Financial Chronicle
..
.
(2532)
16
a
Thursday, December 18,1958
decade ago. There are some
indications that the shoe busi¬
By WALLACE
Stocks hovered within easy
reach of their record
high for
this week, hunting
spark to help indus¬
the most
for
a new
made
trials
surpass
bid
second
a
to
the old peak. .>
has
ness
THE MARKET... AND YOU
also made its
News About Banks
turn
good improvement could
ahead. Price markups have
and
be
STBEETE
CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS. ETC.
higher costs and while
total output is expected to be
section that someday
could a shade under, last ;year's
record peak, next year's out¬
profit handsomely is Timken
Roller Bearing which is in the put is expected to be back at
forefront of the suppliers if a; new peak. International is
rails ever are forced into full- close to its low; for the last
scale modernization of their decade and some 30% under
offset
REVISED
CAPITALIZATIONS
I
-
*
*
•
.
freight
Office Banking Department,
appointed
>
f':rC*Cv- >
the
Bank
•
South
the
announces
election
of
as
its
operating
economies
where.
status.
have
Armour's
already shown
•
items
as
S!«
issue
an
Western with oils and
for the roads a bit
even
that
more
felt
have
the
of
$
*»
ficer
The Union of South Africa has
J.
period of dynamic,
economic growth which will pro-,
vide expanded foreign trade and
investment >, opportunities' for
American businessmen during the
years ahead, according to Richard
S. Perkins, Vice-Chairman of the
undergone
a
First National
Board of The
Mr.
Perkins
burg Dec.
The
First
Africa)
(South
Ltd.,
year
and
the
year
finally.
❖
*
*
With rails
before
more
again
yields
investor attention. And
the
as
a
generally seen as
more
than
having made a turn for the
tional Shoe
better, there has been much
pattern
of
high lar
result running to
York
5
%
in
Interna¬
though the
attention, given to the railroad $1,80 current rate has been
equipment shares. One in this trimmed back from $3 paid
article
views
17
Dec.
on
time
coincide
as
those
com¬
from
this
The
was
branch
Point
increases Chemical's offices to 94
in Greater New York.
'
—#•. :>
1*
o
■
-
electronics.
western
to
the Mid¬
Bank in
will
and
states
will
Poduska
Mr.
continue
Bank's finance
company business. Located at the
Bank's Fifth Avenue Office, Mr.
Porter is engaged in eommercial
banking activities.
supervise
Promoted
Assistant
the
in
Presidents
sion
the
to
Vice-
Banking Divi¬
Walston
C.
Gallie,
W. J. Leete, and Henry M. White,
Jr. Mr. Gallie is a representative
in
were,
the
White
West
in
Coast
the
of
The
devote
his
time
to
3%
County
;
*
Company,
Trust
Promoted from Assistant Treas¬
were
Irving G. Harring, Jr.,
is
charge of the Croton-
in
on-Hudson office; George Marron,
head of the Yonkers office; and
T.
Gerard
who
Mjeehan,
is
as¬
signed to the Pleasantville office.
Irving G. Harring, Jr., has been
with The County Trust Company
since
1946, and
Bank
since
George
an
officer of the
1955.
Marron has
been with
The County Trust Company since
1927 and
was
named
an
officer in
June, 1957.
Gerard
T.
has
Meehan
been
with The County Trust Company
since
1950
officer in
and
was
named
an
1957.
e
»
-
Stockholders
*
of both
the Black
River National Bank of Lowville,
N. Y„ and the Watertown
National
Bank of Watertown, N. Y., will be
asked
to
merger
approve
on
Jan.
?
plans
for
a
13.
«
The Board of Trustees regret to
Mr.
announce
W. Barker,
loan
*
Plains,
and
term
the
Long
a
New York* to the
rank of Assistant Vice-President.
White
and
Southeast. Mr. Leete will continue
to
of
payable to share¬
$
South
area
Middle
of
Bank
The promotion of three officers
.
I who
July, 1958, is a specialist in avia¬
tion, transportation, leasing and
represent the
National
New York declared
proval by shareholders and the
Comptroller of Currency in Wash¬
ington, D. C. Shareholders will
vote
on
the proposition
at the
Bank's annual meeting to be held
January 20.
urer
•
*■
Directors
of
holders of record January 20,1959.
The dividend is subject to ap¬
fast
Hunts
Of
Board
dividend
stock
opened an
banking
office
new
Helm.
Ad-
the passing of
Frederick
President of Syracuse
Savings Bank, Syracuse, N. Y. Mr.
Barker died Dec.
10th at the
age
of 69.
.
expressed
in
with
They
those
are
of
financing.
Mr.
Eldon H. Read,
in
automation
the
presented
of the author only.]
.
thi$.
do not necessarily at any
"Chronicle "
•
.
(Number of shares out¬
5
Island,
designed to
growing and
highly industrialized section with
the most complete and most effi¬
cient
banking
service
possible,
according to Chairman Harold H.
The
IBM and less
dressograph.
[The
even
stock
tfi
office to
serve
the important Hunts Point
area.
The new quarters are cen¬
trally located at Randall Avenue
and Faile Street, Bronx.
dead provide
and
$
office.
overseas
Chemical Corn Exchange Bank,
New
ultra-modern
2% in the recently popu¬
Bowes
capital
Security
oddly with half of
Pitney
a,
The
And Smith-Corona
on
-""v*"
standing—14,000 shares, par value
$25).
the Bank's 74th
yield approaching 5%
1% return
than
and
'
D$c.
subsidiary of an Ameri¬
bank to open its doors in the
Union of South Africa. This marks
price/earnings ratios in its
Early this year when the
for this year. Royal McBee is
group, some 13-times-earnhit, Norfolk's net
ings.
virtually assured of turning
income dropped a third. But
in a far better picture than its
Shoe Issues Neglected
by the Fall and while gross
three-cent profit of the last
income was still off a bit
contrasts
Peterson,- formerlyVice-President
Comptroller to Comptroller.
can
downturn
a
W.
the first
full economies of this switch where Penn Dixie offers a re¬ that it sells at some 60-times
turn of above 4%. This issue
are still in the future.
last year's earnings and 45
also sells at one of the lower
*
*
times the results anticipated
with
Frederick
Assistant
$200,000
$300,000 by a stock dividend
and from $300,000 to $350,000 by
the sale of new stock, effective
cyclical
*
*
$
The promotions of eight men at
6% yield class at present
swings. The road was also a
The Bank of New York were an¬
Not
so
easily explained, prices.
holdout against dieselization
nounced by Albert C. Simmonds,
until recently when the econ¬ despite the acknowledged fact
Jr., Chairman of the Board, on
that construction has been one
The big discrepancy is in Dec. 9.
omies of this form of motive
of the
Gordon D. Brown, Howard J.
bright segments of the the office machine makers
power made
it get in the
where the only demand seems Poduska and J. Lenox Porter, all
parade. There is, however, economy even through the
of
the
Banking Division, were
much work to be done to con¬ recession is the neglect cen¬ to be for International Busi¬ named
Vice-Presidents.
Mr.
tering on the cement shares ness Machines despite the fact Brown, who joined the Bank in
vert the line to diesels so the
sharply, its profits were able
ignored rather roundly, a de¬
to show a 6% improvement.
clining earnings trend in re¬
For the full year the
figure is
expected to be close to last cent years no help to inspire
sistant Treasurer to Treasurer and
to
goes
fiscal year.
formerly
Assistant Vice-President and As¬
mon
Johannes¬
National
York
New
officer;
loan
Strifert,
The First National Bank of East
for the opening of
City Bank of
15
mortgage
Islip, New York increased its
in
was
to
Kenneth
City
Bank of New York.
recession
Shoe issues have also been
Deane, with the Bank
formerly Vice-Presi¬
Other
elections
were:
Philip
Coombe, formerly Assistant VicePresident and mortgage loan of¬
Vice-President
as
v0
lately have been than alive," its book value
prominent on selling. As more than double the recent
a
result, however, returns market
price. It is on a divi¬
more. Norfolk stands out in
running to around 4V£% have dend basis
although the pay¬
its ability
to control costs been available in such as
ment had to be trimmed a bit.:
quickly when the demand for Atlantic Refining and Stand¬
A return to the $2 old rate,
coal that looms so large in its ard Oil of Ohio.
however, would boost it to the
business >
into
and
Mr.
41 years, was
Schwer
good
"more
worth
the
announced
dent and Treasurer.-
Chase Manhattan Bank, New York.
tfi
Norfolk &
dent.
the election of
was
Bank,
Savings
Y.,
office of Senior Vive-Presi¬
new
" -n
it
;
,
Announced
pickup and projections are for
Attractive Rail Issues
a continuation. It is currently
Like the rails, the oils have
dividend-less. Cudahy is an
The long neglect of the rails had
few
champions
lately identical
story of good earn¬
continues to make them the both because of
industry
above-average yielding sec¬ problems and the fact that in¬ ings gain and the possibility
of resumed payments. Swift,
tion, the returns running to stitutional investors for so
the giant of them, is a case of
around 4 V2 % in such quality
long have been well loaded
*
•..
Loomis, President of
N.
Paul A. McManus and Clinton W.
earnings
a
Savings
of New York
election of Lewis G. Deane to the
of Trustees of the Bank.
.
take hold.
City
Brooklyn
Brooklyn,
Donald S. Macdonald to the Board
v
anything else¬
The
Richard B.
MacDonald
S.
D.
York
-
didn't stir up
'•
'■
Dollar
•
^
.
of
-
-
•
of
**/"•"'.
Catharine, Chairman
Board
Y announced the elections of James
F.
Loughren : and
Edmund
T.
Wolf, Jr. as Assistant Vice-Presir dents, both of whom were formerly Assistant Treasurers.
^
-
.
_
of
'Robert M.
■
of
•
%,
^
*
•
Upjohn was elected
Empire City Savings
Bank, New York.
•
>
T.
trustee
a
*
r
cars.
«-
.
Charles
was
Assistant Treasurer.
an
; -
its 1955 peak which has gone
While passenger
a long way to reflect the re¬
cars
are
virtually all rollerThe first attempt to plow
cent troubles.
%
:
bearing equipped, some esti¬
through the resistance around mates are that no more than
> #
*
;
* ;.vvv
*.. "
the Nov. 17 all-time high was
26,000 out of some 1,700,000
Textiles have also been far
foiled by the slim margin of
0.17 of a point, and early this freight cars are so equipped from the spotlight for a rather
and Van
week the average was again although it is a well-known protracted period
fact that there
are
sizable Raalte in this
group, while at
within about a point of the
economies in such equipment. a new
high since 1956, is still
top, but even a few wide run¬
*
❖
❖
on a 6% yield on the present
ups by selected issues failed
Earnings for this
The practice of interchang¬ dividend.
to inspire any all-out assault.
ing freight cars has found; year, despite a strong finish
Technicians Undisturbed
in the final quarter, are not
many of the roads loathe to
^ "
There wasn't much in the spend the money on moderni¬ expected to come within half
a dollar of the $3.26 of last
way of chagrin selling when zation^ for the benefit of the
these approaches to the old other j carriers
year but; would
cover the
using them.
peak fizzled out. Nor, for that And with income pinched in dividend; But the stock seems
matter, were the technicians a recession there was little to be starting to discount the
unduly disturbed since the likelihood of any mass move possibility that the company
time is fast approaching when in that direction. But Timken will have a sharp earnings re¬
the year-end cleaning-up will is hopeful that with better covery next year.
be finished and the traditional times the trend might take
Possibilities in Meat Packers
hold.
end-of-year spurt set in.
Meat
;
*
❖
*
packers have had
jfc
^
lately but
Great Northern Railway is their champions
The rail average had settled
without excessive price ac¬
another high-yield
item,
for a prosaic existence, pre¬
available at a 6% yield re¬ tion, mostly because some of
sumably waiting on the senior
them
are
dividend-less, al¬
section for the next signal. cently. Lagging demand for
iron ore has kept its traffic though prospects are that the
Utilities, however, had been
20% gains in hog slaughter¬
able to nudge to a high-water restricted but its income for
mark for 28 years although it the year is expected to be off ing forecast for next year will
restore them to the paying
slightly from last year
was a casual achievement and only
#
George O. Nodyne, President of
the East River Savings Bank, New
named Assistant
who specializes
in
banking,
was
Comptroller and
Everett Estes of the Fifth Avenue
Trust
Barker
&
joined
Deposit
the
First
Co. of Syracuse
elected President
in 1925. He
was
of Syracuse
Savings Bank in 1945,
Continued
on
page
105
Number 5804
Volume 188
.
.
The Commercial and Financial Chronicle
.
(2533)
STANY GLEE CLUB
Automation and Life Insurance
By ROGER W. BABSON
IT
n ::
Spectacular gains, after 1965, for life insurance industry and
for -makers ofautomated equipment are predicted by Mr.
$abson on the basis, respectively, of anticipated gains in life
; f :
:
expectance and increase in birth rate.:
.
Dr. Robert H. Wilkins of Boston,
President of the American Heart
A sizable portion will be due to
the need for more facilities- and
Association* predicts that ?iri/ ten
services for the
years
so", the life
or
♦
of
-
will
be
years;,
.
If
.
Viri
1
Wil-'
his
cast,. by.; .1068
"20
about
lif e
y.
augur
a
h
e
ex pec
ness
:
Roger W.
Babson
b
'
,
V v,
'
u
t
Labor
w
There
make
pay,
of
the
that
tion.
method
one
by
counteract the
can
of
It
manpower.
must
effective
more
The
Otherwise, there will not be
of earnings to
capital for expan¬
sion and for replacement of out¬
moded plant and equipment. Per¬
haps the biggest single problem
facing management over the next
people in public and pri¬
of all types
$80,000,000,000. Invest¬
ments
in
private pension plans
alone amount to more than $35,000,000,000 and represent 18% of
our entire savings.
I forecast that
our
amounts to
assurance
20 years is manpower and the cost
of that manpower. Automation is
the only answer I can see.
dict
investments in all types
that
chines
or
public
and
private
ma¬
Tape
The firm of Filer, Schmidt &
Co., 120 Broadway, New York City,
companies has had
tape
have enjoyed continuous improve¬
recordings
ment in mortality rates for many
made of a lec¬
years now, owing largely to ad¬
ture
on
Puts
[
Effect
The
lifer
on
successful
Club
year
at
its
final
STANY's
for
—
(Photograph by David Mitchell, Hill, Thompson & Co., Inc.)
I pre¬
companies making
other
equipment
Puts and Calls
most
,
de¬
pension
plans will have jumped to $165;-* signed to cut labor costs will have
an unusually bright future.
00(),000,00R by 1978, thus assuring
steady purchasing power for the
pensioners and the disabled.
on
of
STANY's Glee
session of the year at Oscar's Restaurant, wound
up
most
popular singing group.
Salvatore Rappa, -F. S.
Moseley & Co., has ably guided the group through five years of weekly rehearsals assisted
by
pianist, Henry Gersten, Oscar Gruss & Son and composer Seymour Blauner, Phoenix Securities
Corp., and Harry Zeeman, Carl Marks & Co., Inc. Director
Rappa praised the members for their
faithful attendance record and introduced STANY's retiring pfesident, John McLaughlin* McLaugh¬
lin, Kaufman & Co., and National Committeeman 41
Tisch, Fitzgerald & Company, and announced
that the Glee Club would present several new
niupber* at Hie annual STANY Waldorf Dinner in
the Spring of 1959.
a
attract needed
stake
vate pension systems
the total
only
spe¬
heavy demand.
greater and
a
sufficient
total
at
of the techniques of automa¬
use
government programs.
told
than
disastrous impact of this expected
railroad retirement
pensions, Federal, state, and local
civil-service pensions, and other
am
-
high, Wide, and
Chemists, physicists,
is
pensation, veterans' pensions and scarcity
I
Labor
i p a t e;; another
riding
which business
.
-
for
history.
again be in the
cialists will be in
people
are collecting nearly $20,000,000,000 annually in old-age insurance
payments, unemployment com¬
disability
c
engineers, and other skilled
head¬
mean
t i
once
handsome.
i 11
At present our
aches too.
age
„'T
will have fewer workers
will
saddle,
term,
-
i t
a n
'
.A
r
to;support more people
any
other time in our
the
over
longer
*
Boost
I
means we
well for busi¬
■
'J-
aged - 65 or over and
75,000,000 under 18.' That
about
tThat
should
.
New
Since
-
25,000,000
to
years
-
increase, in births in this
country, beginning probably about
1965 and continuing for several
years, by 1978 we could well have,
jn
a
population Of 225,000,000,
Ave" shall have
1
7
marked
fore¬
added
*
z"
•'
:
Dr.
;v
^w.,
''
nirity
kins is correct
.
above. ,the
Americans.: Of
.
*'
.
growing sector of
population
our
expectancy.
Form Planned In v. Co.
W. H. Webber
INDIANAPOLIS, Ind. —George
B. Steel, Jr. is engaging in a se¬
curities
5600
business
East
from
Fall
offices
Creek
Parkway
North Drive under the firm
of Planned Investment
at
name
Webber is conducting a securities
offices at 85 Law¬
business from
rence
Avenue.
with
NCE
and
Company.
Form Wohl-Kessler
Opens
TUCKAHOE, N. Y.—William H.
Insurance
He
was
Shares
LONG
ISLAND
formerly to engage in
Distributors
Winslow, Cohu & Stetson.
CITY, N. Y.—
Wohl-Kessler Co. has been formed
with offices at 31-53 Steinway St.,
Partners
ney
are
a
securities business.
Alfred Wohl and Sid¬
Kessler.
insurance
,v
in medicine
vances
well
...
and
nutrition
as:
Two.
i
I
life
believe
insurance
com¬
panies stand to make further
tacular
gains
is bettered.
companies
premium costs
are
life
as
spec¬
expectancy
Those insured by mu¬
tual
dends
and
should
see
decline
as
boosted.
Calls
given
to
shortening of the
work week. Most companies have
found their actual mortality ex¬
perience more favorable than that
anticipated in
the
calculations
upon which their premiums were
based.
Also- the life companies
have had the- advantage of vastly
increased investment earnings be¬
cause of large gains in premium
income and the sharp upturn in
general business since World War
as
by
Herbert
recently.
ANNUAL REVIEW & OUTLOOK
ex-
plains the his¬
r.
the
sell¬
TOE CHRONICLE
ing of options.
of the
tape recording
may be had
A copy
for
Herbert Filer
Will be Published
temporary use
change houses
or
by Stock Ex¬
educational in¬
in
creases
coverage
increase
Longer
from
life
at
little or
rates.
present
expectancy
cannot
help but enhance the fortunes of
the
stock
companies, of which
Aetna
Travelers
and
the
are
largest.
★ The
F. A.
Francis
Callery Opens
A.
riod
longevity increases, the
between
retirement
death will widen.
additional
ment
and
creases
age
This will
problems
business.
for
at
1
Francis
Partners
are
Charles
Callery
A.
Callery,
Grant
E.
and
Judge.
Form Chatham Associates
Associates
with
offices
has
at
been
305
West
End Avenue and 60 East 42nd
pe¬
and
mean
govern¬
Sharp
offices
Street, New York City,
to engage in a securities business.
formed
Plans and Taxes
with
New
York
securities
City,
to
business.
engage
Partners
St.,
in a
are
Walter
Guzzo.
J.
Schneider
and
Charles
con¬
Forms Zindler Co.
tributions of management and em¬
ployees
In
to priyate pension plans
equally stiff.
addition, I predict that Fed¬
eral, state, and local taxes
erally will move to new
levels.
be
due
gen¬
high
Some of this increase will
to-
higher operating costs.
trial and financial leaders
fields.
★ Get
your
on
the outlook for business in their
respective
/
perspective
leaders who manage
next year's business possibilities from the
on
the country's industries.
★ Do not miss the opportunity to advertise your Firm,
Bank
in
this
important issue constituting
America's most competent
outlook for the year
a
composite
business and financial opinion
ahead. Please
reserve your space
Corporation
cross
on
or
section of
the economic
requirements before
closing date of January 10th.
Regular advertising rates will prevail
for space
ployers and employees for social
will be
ANNUAL REVIEW & OUTLOOK ISSUE will
Adler, Samuel Sockol, Mar¬
Greenspan, Peter I. Feinberg,
vin
in¬
Boosts in
our
Louis
in taxes levied upon em¬
security lie ahead.
1959 issue of
present the official opinions and forecasts of the nation's banking, indus¬
Agent, has
Callery,
formed
Chatham
Pension
As
January 15, 1959
stitutions.
William
no
OF
ious uses, and
also
from lower
in¬
'
.
been
or
-
ISSUE
and their var¬
by stock companies should benefit
premium rates
-
tory of options
total
divi¬
Those insured
The
lecture
:
THE 1959
Mr.
Filer
Irving £indler is engaging jn
a
securities business from offices at
55
Broadway, New York City, un¬
der
the
Company.
firm
Mr.
name
of
Zindler
Zindler
was
in this important issue.
.
THE COMMERCIAL & FINANCIAL CHRONICLE
25 PARK
PLACE, NEW YORK 7, N. Y.
for¬
merly a partner in Zindler & Co.
-
'
*
The Commercial and Financial
(2534)
^18
this
^
Thursday, December 18, 1958
.
the
proper
While there is
Retiring President, Investment Bankers Association of America
to handle a
way
recession is to let it
President, First Southwest Company, Dallas, Texas
the past year
D. C., is not
..
that
By WILLIAM C. JACKSON, JR.*
during
is that Washington,
like other cities in
country. When things start
thing I discovered
One
Chronicle
its
run
course.
merit to this
some
position, it suffers from one vital
weakness V
;
it is completely
unrealistic politically
.and it
.
Outgoing IBA President pin points the reasons
thinkers' fears about future
the
tion and comments
C. Jackson, Jr.
have been a
before on consideration of
their merits
on
to pass the Con¬
had failed
alone,
an
were
reintro¬
anti-recessibn tag
There is
them.
a
ideal
As
are
legislative mills were full of pub¬
lic works bills. We opposed many
of these bills, both on their lack
of
intrinsic merit, and on the
ground that they were
suited as anti-recession
The
mere
an
that
program
not
spending
automatically make it
appropriate anti-recession in¬
Of equal importance is
strument.
the
It
timing
is
♦Remarks
Annual
Bankers
of
the
secret
no
of
Mr.
expenditures.
that
it
takes
at
dam
or
ahead
new
fire station
school
and
or
building,
finish
it,
even
a
;;
What We
Can Do to
of
relief
tax
rather
the
no
you
go
though
justify the undertaking
longer exist.
think subsequent events have
I
strenuous opposition
to these public works bills.
The
Federal Government budget defi¬
justified
nitude
our
of
potential
stemming from the Federal budget
deficit during this recovery period,
of the Investment
Association
pf
America,
Bal
Harbour, Fla., Dec. 1, 1958.
we
argued
ment action
the
that, if Govern¬
were
needed to fight
recession, it should take the
dollar
—
Quite apart from the
amounts
would
cut
The
it
Justified
Taxes
on
brevity
was
the.shortest
;
tern
of the recessionwe've had
one
since
before
dered
"the* ^ontrovers'v"
the
<
War
World
have
the
advocates^ tax^eduction
and
ttfis^eason S h
to
to
full
a
cut
SfLutS
o£
.
_
*
.
Federal
nroduce
revfaster
a
^ Federal^xit
here
even
Penditures. It is unfortunate, but
reveals that Federal Government expenditures tend to rise
to absorb any increase in tax rev-
produced by a rising na-
tional income.
many
grounds,
only three;
1
There
are
who
1
■
V;":
fa
Bonds
•
in
i
located in
the
Another
effort to
serve
;
Detroit
Pasadena
•
San Francisco
Philadelphia
•
Minneapolis
•
•
1 '
San Diego
•
Chicago
•
Pittsburgh
•
Spqkane
•
•
San
Jose
,
Oakland
•
•
Fresno
thing
defend
it
•
•
•
Eureka
•
•
Palo Alto
:
Indianapolis
Sa«ramento
•
•
for
,
^
]
do to help
every
the Federal Re¬
the
certain
barrage of
to
receive
Congress. We should
can
to assist in edu¬
and the necessity for
Continued
Portland
•
•
to
re¬
cating the public toward a better
understanding of the value of
monetary controls to the average
;
Seattle
Louisville
we can
from
is
we
what
Banks and Insurance
Los Angeles
and ..not
..
new
Complete Trading Facilities
Cleveland
•
,
endeavor
will be used to
1
Board
attacks
-V
'
"
centers.
Boston
'
fiscal
rising level of Fed¬
from the
Municipals
t
1
common
combat inflation is. to bend
Stocks
Industrials
v
principal
financial and business
New York
-
contribution
Federal
join other associa*
deficit
penditures.
Public Utilities
JrV
recover-
further expansion of Federal ex¬
i:
through 24 offices
a
we
revenues
duce
real
a
that the
see
eral
&
distributing facilities
In the coming
economy
sounder
a
position if
believe
Primary Markets
'
toward
v.
Distribution
Coast to coast retail
make
can
person,
'
some
have
we
employment
steadily, and with a huga
Federal deficit, we cannot hope
for
a
general reduction in the
level of taxation, and we should
oppose any irresponsible proposals
of this kind. We should, however,
work
actively for
tax
reform
measures
which will provide
greater incentives to produce. We
do
enues
name
ol
growth
.
ing
tions
sel£- helP to Umit the subsequent
growth of Federal expenditures
is
but I will
sys-.
important—
in tax rates would, in it-
tion,' as opposed to public works,
on
our
with the
year,
very
mav
mention
defensible
on
of incentives.
the advocates oi
public works programs as stimulants to the econcmy rather academic, but it is an
involved, the tax
a
desirable and
impact
Third—And
I
between
'
~
Second
much-needed
Policy
place
sion
.
of time.
inflation
the
cit, which appears to be the prime
inflationary threat for 1959, would
have been even larger than it's - is now behind us. The stand which
going to be. Early in the reces¬ we took.on the side of tax reduc-
Jackson at the 47th
.
an
immediate impact op
private consumption and iiivestment expenditures . . . whereas
the impact of a public works program would be felt only after the
passage, of a considerable period
.
■
t;
months ahead when
returned
tax reduction has
a
Combat
The time to fight inflation is not
during a recession period.
The
time to fight inflation is now, dur¬
ing the recovery period, and in
combat infla¬
vantage that
as
7
First—There is the crucial ad-
than
long
Inflation '
•
of the Association in the past decade.v
progress
form
new
to
were
Convention
destabilizing rather than
the economic circumstances which
measures.
a
a
build a
not well
Government
involves
does
fact
year,
stabilizing devices; rather than
being bures for the recession, they
would- have been generators of
inflation, for once you start to
be¬
consequence,
a
and often longer, to
public works program going.
a
out to be
curing a
the
for
measures
recession.
the
public works projects., As things
If bills like the Community Facili¬ turned out, the economy had sufties Bill had passed, they would ficient resiliency to pull out of
have had their first real impact the recession; withoutany new
on the economy in the spring
of > large scale Federal public works
1959, exactly when they will not programs or large scale tax rebe
needed.
If
these
bills had ductions. This, of course, is all to
passed, they would have turned the good, since it reduces the mag-
marked tend¬
among Congressmen to
lieve that their pet projects
ency
the
least
get
as
duced with
on
.
they fear inflation;
level of operations.
w.
the recession pro¬
duced a very active
legislative
session. All of the spending bills
that
Federal
on
.
as
great mass, of people in this
country fear. recession more thaii
recovery
produce. The Dallas investment banker submits proposals to
to
the year
passed would
gress
capacity; defends the IBA stand
excess
so
the
general tax reduction but not tax reform that will provide greater incentives
gress,
one,
will continue to be
bills and tax reduction in place of public spending during
recession; and advises the time to fight inflation is now which precludes
spending
session of Con-
just
busy
.
recovery
will be sustained; rebuts the revived "mature economy'*
is well founded and
^lowing ^dOTvn
why he belieyes the
Oxnard
on
page
ex-
46
1
Volume
188
Number
5804
.
.
The Commercial and Financial Chronicle
,
(2535)
•*•««<.
Li>
'M
i.^4
^vl
^
_ *
1- ^vl V
**
.
*
*"
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.
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—
iff
—
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^
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f*>3
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»• . ■>"<*, »\K V>_1 _'
* .\.S» ^
'"<-14 /
„
'
<y'c
v-
JO V" <
ip^
A
!?w
FACTS ON MACKINAC
^P;
;<
1. This Bridge, which was wmmmw
f Vv,/\ i .WinFenry SerVioe, stretches 8,0tf fputms
flplig
,
.
"
v
v'l/
w
IT"
Straits of Mackinac* in
^?
~~
„„„
-
,,,»1#Sr
X
^ i
^
'•;
<"
'*
■■
from anchorage to
-
Norlh<iW^ift.
....
_.
ane^gajjE& the longest H )S1
(**h U;§: suspension bridge in the wowdl^y
....
,
—
■'
2. Crossing now takes 10 minutes, coili-
-~~^pa^4Ho'at }ea^ o^ehour \la' t«e former1 /
\
*
BaJftheB^O^^^ws.pmhewr, where the
l?eii^8?capa<ityvMfas:al)<nO 400 cars': ' — •
■1;: Feity!
•
--
Tfit> Bridge, financed*thr'ptrgh f|\;' \"v
$99,800,(MM1) Itevenne Ijond issue, was eomploted within the estimated cost and
,
T
3.
1
-
*
^
|&J|
-
opened
'
:
>v-:,,.v....,.-....,•...
-'
on
*
-
schedxie■
v.
...•
,:.s
■■;.■>
4. In its first year
of operat ion, just '/•><•
completed'on November 3,1958, 1,400,000
-it'/*
vehicles have passed over the bridge, paying
,* | |f«M
$5,200,000 in tolls,, topping the Ferry by
;
.<* >| %/M.
515,000 vehicles and.$1,050,000 in revenues;
;
J;
„
Revenues have been more
5.
cieut ty
-
*
>«',
take
care of
than suffi-
interest payments.
-
<
}
j
<,«. <'"S,
!
Bridge Design and Supervision of Construction: D. B.
Well-conceived,
essential bridge, projects which
structed to replace
In many cases,
cent
into
were
were
con¬
ferry facilities, have had remarkable success.
traffic increases
effected within
a
as
high
as
several hundred per¬
few years after the bridge went
operation. Facilities of this nature, based on the known
earning
power
of the ferries replaced, have achieved a well-
earned
reputation
safety,
as
well
as
among
tax-exemption.
Allen & Company
experienced investors for yield and
has long been active in all phases of reve¬
nue-financed projects,
acting
as
Steinman, Engineers
advisors to public bodies, as
originators bringing creative "know-how" to
lems, and
as
A recent
example of
our
Mackinac Bridge-which
successful operation.
We
were
financing prob¬
major underwriters and distributors.
•
activities in such financing is the
has just completed its first year of
.
\
privileged to develop the financing plans for the
Mackinac Bridge
Authority and to act as co-managers in the
underwriting.
qAllen
&
Company
Established 1922
New York 4, New
York
STATE, MUNICIPAL AND .REVENUE BONDS
The Commercial and Financial Chronicle
(2536)
20
Thursday, December 18, 1958
...
"Gun-Jumping Problems Under Section 5"
IB A
the
ing,"
By EDWARD N. GADSBY*
pleasure of addressing
briefly just a year ago
I had the
vestment
problems relating to the
and
The
nesses,
Securities and
then
was
be
proscribes
felt
or
an
es¬
seek¬
ing financing
persons
a n
an
or
freedom of the
press.
financing, and comments
one
in
Cleveland.
I
your
auspices
the
during
it considered
a
reasonable demand
year
will
the
be
a
substantial
demand for
increase
in
capital, and
in
particular for equity capital
evolved in this connection went during the winter ahead of us.
even further and was even more
During the third quarter of 1958,
helpful, I think, than we origi- registration statements filed with
nally conceived.
Our audiences the SEC became effective coverthought both meetings were very
successful.
The
pattern
which
Annual
ment
Bal
by Mr. Gadsby before the
Convention
Bankers
of
Association
the
of
invest-
new
schools of thought,
en¬
many years.
one
of which
ties
involving
This
participant in the financing pat-
with similar figures for
tern estabished by this legislation.
'
$4.2
billion.
There
~~~
of
Securities
Ex¬
and
The problem has
nu¬
has
been
increasing
an
the
over
communication,
tendency
a
fi-
many.
It is contemplated that the small nancial institutions, particularly
business investment companies the New York Stock Exchange,
formed under the Act will be This practice* reflects a commendfinanced initially by private eapi-r able and growing recognition oft
tal, which will be matched within the part of industry and the incertain limits by •>Federal funds ^vestment community of fbe imfurnished by the Small Business portance of * informing security
Administrating•-The Act;; also holders and the public generally
contemplates that the investment of important business and irhan-i
of this pool of Capital in any small ciaV developments. The SEC embusiness may eventually be liqui- phatically does not wish to dis¬
dated bv the issue and sale by the courage this trend. At the same
investment company to the public time, it is essential that corporate
of the securities sold to it by the management, underwriters, dealsmall business. As you may ap- ers, lawyers and public relations
predate, the SEC is interested in firms recognize that the Securities
this process from several points Act of 1933 imposes certain reof view, and is working closely sponsibilities and limitations upon
with the Small Business Adminis- persons engaged in the ; sale of
tration in order to establish feasi- securities and that publicity and
ble techniques under which these public relations activities under
activities may operate. Pro- certain circumstances may involve
posed rules In this connection violations of this law. The inevihave been distributed for com- table result of failures to consider
to
ment and are now being consid- these matters is *"* cause serious
44
—
^rod by the Commission for adop- inconvenience to issuers and un¬
derwriters in connection with the
tion.
new
,
At
clear
seems
to
me
that
the
mechanics of financing under the
Small say, this Investment Act.
Business legislation was
I
As
It is quite frank¬
experiment. If it does not
work, if it does not operate to
an
facilitate
ket, I
ther
by the entrepre¬
private capital mar¬
perfectly sure that fur¬
will be enacted
am
legislation
which will bypass private capital
and
completely
delegate
this
financing to government agencies.
This I do not want to see, nor do
I think you do, since it will un-
questionably
to
tend
Federal Government
leave
in
a
established
the
perma-
nessesqa'phenomenolT which
once
leads naturally to in-
volving government
in the own-
whfrK13^bavpmeniv^r inhepn
ffimJfftV
fields fo
proper
public control.
...
is
It
its
timing and marketing of securi¬
ties
issues.
Securities Act of
The
cornerstone
of
the
1933, the
entire
struc¬
of Federal) securities legisla-
ture
tion, ^as as G1?e.of }^s primary
the elimination of a sitby the Congress to
PurP°se?
uation
be
found
threat to investors and detri¬
a
mental to the
contemporary
ments
with
public interest. The
legislative
docu¬
express
the
then
de<?p
a
concern
existing
distribu¬
tion
practices as the result of
which
investors,
brokers
and
dealers were compelled to make
commitments
blind
without
ade¬
access
the
to
neur
anr/
can
posi¬
which has been encouraged by the
ly
m
I
years to give
to corporate actiyities
affairs through many media
and
nomic structure.
V/)ea/e#&
as
the
publicity
drafted to preserve the functions
of private capital within our eco¬
.
is
nor
facets and its resolution is
tendency
inS 275 issues of corporate securi- tal market becomes a statutory sue it in order to publicize the
compares
a
by no means easy, even under the
simplest set of facts.
would have handed this entire SEC and the investment bankers
task to a capital fund established have an obvious duty in this sitout of Federal money and the uation, not only to continue the
other of which would have left excellent program so auspiciously
the entire job to private capital, begun during the past year but
As things stand, the private capi- aiso f0 expand and actively'pur-
America,
Harbour, Fla., Dec. 3, 1958.
the
of
So far
furthermore,
enlightened attitude of
were
just past can be continued for the establishment of machinand expanded in the year to come, ery which would facilitate the fimittee on Small Business, we par- All the statistics with which I nancing of small business.
The
ticipated in two of these gather- have been furnished in the past legislation finally adopted repreings during last spring, one in few months indicate that there sents a compromise between two
happy to report that under
the sponsorship of the IBA ComI am
*An address
out,
:
tion
Business Investment Act
under
writers.
problem,
new
a
is
to you.
change Commission on the sub¬
ject has remained unchanged for
the recently Small
on.
business
time in the past.
Turning to other matters,
made up, as far hs we were the third quarter of 1957 of 254
businessmen and attorneys were able to analyze their composition, issues involving $3.3 billion. It is
inclined to place on the SEC part .in about equal parts of lawyers, expected that corporate securities
of the blame for the alleged dif- underwriters
and businessmen, reaching rthe public market rin
ficulties
experienced
by
small with a sprinkling of accountants. 1959 will continue at the record
business
in
procuring adequate The-sessions were in two parts: levels of 1958. While the segregafinancing on
the : ground
that the morning session which was tion of these figures as between
procedure i under
Regulation A devoted to an explanation of the what might be termed smaU busi- ;
was unduly
complex. Hence,iT it filings under Regulation A by ex- ness and large enterprises ;is not:
was sold, such persons and their
perts from , the SEC staff; and a available, it is reasonable to conpossible underwriters were dis- luncheon session at which rep- elude that the same relative accouraged from making public se- resentatives of the underwriters, tivity in financing small business
curity offers.
I then suggested the bankers, the Small Business may be expected as is the case for
that your body cooperate with us Administration,
the accountants business in general.
in
organizing
throughout
the and our own organization gave
We ought also to consider the
country a series of gatherings short talks, each clarifying in effect upon this program of the
which would be designed to dispel broad outlines the function of his passage
by Congress of Public
this
misconception
and explain own activity in the field of the Bill 699, commonly referred to as
the
techniques) of Tiling under financing of small businesses,
the Small Business Investment
Regulation A in lay terms to the
It is our sincere hope that this Act of 1958. Congress was faced
lawyers, accountants and under- program so successfully launched during the last session with what
and
the firm is not
as
with
which has not been pretty
one
find
underwriter's dissemination of normal information
on
lation A in small business
Edward N. Gadikjr
d
might be
eligible to file with the SEC
under Regulation A. We had been
given to understand that some
47th
"offer
an
praises IBA's cooperation and initiative in explaining Regu¬
who
Denver
involved in
"pre-offering publicity"
outstanding security issue—so long
infringement
the Commissioner
modest
amounts
distributor's
evaluation of
there is any
and
it
a
from
thoroughly discussed from time to
gaged at the time in the sale of the unregistered security. [He also denies
liaison be¬
in
on
it
merous
sential lack of
tween
Commissioner Gadsby denies restrictions
sell."
banking
This is not
con-
it
what
to
to
with
cerned
case,
enforcement, of the prohibition against "gun jumping"
Exchange
Commission
understand
conversations
matter of serious concern
and another "large
newsworthy issue" in 1954, in summarizing his agency's view, and
specifically refers to the current Arvida
SEC head
financing of
small busi¬
I
members of the securities and in¬
today, at which time I described
certain
which
numerous
Chairman, Securities and Exchange Commission
in
of
view
history
this
situation,
implications
its
and
information under which
they agreed to purchase securities
in which public interest had been
stimulated by prior publicity is¬
sued
by promoters and under¬
writers.
As expressed
in House
quate
Report No. 85, 73rd Congress, 1st
Session, (1933) p. 3:
«De
'itve th4 &ct
that
business
d
sponsibilities of
a
character fully
ec*uivalent to those of trusteeship,
^"nofonly"^
™cunty
but
toe
of
ehara^efoi
the
ehfrges
made in connection with its distribution, J the literature on the
of
fa^h
which.; the
public
was
urged to invest its savings was too
often deliberately misleading and
illusive. Even dealers through the
that I again Suggest that renewed
exertion
efforts be made to discuss in every
by
the problems which
small business has in its financ¬
take allotments of securities of
ing and the sources available to it
without
for
their nature.
possible
area
capital funds.
-•<
Section 5 of 1933 Act
To turn to another and entirely
different
LEHMAN
BROTHERS
tion
5
1933;
One William
Street, New York 4, N.Y.
*
-
4
,
4
fc.v* * '•
* ' *
»
.
■
4 *
* "
of
our
mutual
in¬
I
of
the
Securities
Act
of
publication1 of informa-
tion concerning
affairs
'»■ i
field
would like to discuss
with you for a few minutes the
impact of the registration and
prospectus requirements of Secterests,
an
issuer and its
by the issuer, its manage-
of
high-pressure tactics
underwriters
were
forced
to
an
essentially unsound character and
opportunity to scrutinize
They then would be
worked off upon the unsuspecting
public."
The Congress determined in
adopting the 1933 Act that these
abuses had contributed to unsound
securities markets, artificially in¬
flated
values
hysteria and
tors
and
speculative
were among
the fac¬
responsible for heavy losses
suffered
by
security
owners.
It
the clear purpose of Congress
in this legislation to slow down
was
ment, underwriters and dealers. I the distributive process in order
have in mind particular refer- to prevent brokers and dealers
ence to the problem of "gun jumpfrom making blind commitments
Volume 188
Number 5804
.
.
The Commercial and Financial Chronicle
.
(2537)
21
for securities which
they must, of in fact use the bulletins as selling conclusively establish that the spectus meeting the requirements dealers to make, or solicit offers
promptly sell to their cus- literature^ Whether/ or not a sub- bulletin was being used in an at- of Section 10 of fhe Act is avail- to buy, however tentative such
tomers if they "are to stay in busi- scrlber is using a bulletin as sell- tempt to: dispose of or solicit an able for distribution to dealers, offers may be.'' Furthermore, for
ness.
It was the stated purpose of ing
the purpose of construing the Seliterature is, of course; a order for the purchase of the se¬ brokers and investors.
this law to make certain that the question of fact in each case as curity.
In determining what constitutes curities Act, the communication
information required in order to to which no generalization can be
such an attempt, it is important must be viewed in the light of the
permit an informed and unhurried made. The intent with which the
to
keep in mind the warning procedures employed by the 86-'
In summary, let me reeraphasize which Judge Burns gave in 1934, curities industry and the effect
appraisal of the security offered bulletins are used, as determined
all
be made a matter of public record from
surrounding
circum- that the purpose; Of the. Act, as and to remember that the ques- which the communication is likely
by the issuer and underwriter stances, tvould control the legality plainly disclosed by its provisions tion of whether a communication to have upon the securities disprior to any solicitation by a of circulation thereof by under- and as it has uniformly been in- is, an offer within the meaning of tribution process.
'
seller of dealers or the investing writers or dealers.
1
terpreted by the. Commission is to the Act, must be answered in the
It is perfectly clear, when any
'If an underwriter were to sUp- prevent "every attempt" by is- light of all the circumstances sur- intelligent attention- is given to
public. In furtherance of these
statutory purposes, Section 5, the plement a bulletin with selling suers, underwriters and dealers rounding its publication, includ- this problem, that an. issuer o* an
very heart of the 1933 Act, flatly literature or with a recommenda- by any means whatever to dispose ing among other things, the con- underwriter is not privileged to *
prohibits any activity designed to tion to the recipient as to the de- of or to solicit offers to buy secu- tent of the communication, its
en^a^e *h a publicity campaign
course,
.
or were to rities as to which registration is timing, to whom it was addressed. P?*or to the filing of a registra-;
attempt to obtain from the*recip- required,; prior .to the time when or communicated, by whom it was tion statement in connection with
ient some indication of interest the information specified in the published, the manner of /its pub- a public offering .of-a non-exempt
however tentative in purchasing .Act has been, made public in a lication, and whether its over-all securHyV- This does not mean that
the described security, such ac- registration statement filed with effect may or actually was to a corporation which is planning to
sirability of purchase,
pvpmnfto
offers
to
:buy
front
brok
e r s,
dealers and other investors, prior
of
registration statement
a
con¬
taining the information specified
in the Act.
•
-
...
_
tion, in
;
,
my
opinion, would almost the- Commission and when a pro- cause
the public
or
brokers or
;
Continued on
page
Specifically, among other things,
makes it unlawful- to sell
rity
unless
a
secu¬
registration state¬
ment with, respect to such security
has
a
become effective.
S
ti
ec
on
5(b) makes it unlawful to send
by means of facilities of interstate
commerce
the
or
mails
for
pur¬
of sale of any security un¬
purchaser has received a
prospectus
with
respect
to
it
which meets the requirements of
poses
less the
10 of the Act
Section
or
send
to
out any prospectus which does not
conform to Section 10.
so
Section
5(c) of the Securities Act of 1933
makes it unlawful, with certain
exceptions, for any person directly
or indirectly to offer to sell a se¬
curity unless a registration state¬
has
ment
been
Commission.
;
filed' "with
*
the
'
.
-
To
recapitulate 'what I have
said, it is illegal in any way to
offer a security prior to the filing
of a registration statement. A se¬
curity may be offered for sale
after filing and before the effec¬
tive date of a registration state¬
ment, provided that any prospec¬
tus
employed for 'this purpose
meets the standards of Section 10
of the Act. As
during
a result, in general
period, no written
this
communication offering a security
transmitted through the
be
may
mails
interstate
in
or
other than
a
permitted
or
relevant
commerce
prospectus authorized
by
rules
the
statute
thereunder.
or
After
the effective date, sales literature
in addition to the prospectus may
be
employed legally, provided the
10
(a) prospectus pre¬
cedes or accompanies the supple¬
Section
mental
literature.
"Offer to Sell"
broad
The
sweep of the basic
prohibition contained in Section
5(c) is made clear by reference
to the definition of the key term
used. The prohibition is against
"offer to sell" which is defined
an
in Section 2(3) of the Act to in¬
clude every attempt or offer to
dispose of,
or
solicitation of
an
offer to buy, a security or interest
in a security for value.
These
carefully
^chosen words reflect the
(pongressional mandate that the
.
;
term; -as so defined,-shall not, be:
construed to apply narrowly ' to
communications - which T include
express* words* of "offer"** in the*;
sense
mon
«
irv which it is used in
parlance;
com-
~"
;
j Oirthe other hand, it has never*
lpSenf considered by anyone,"let';
alonethe
SEC, that it is ^unlawful
normal •<* corporate
information to the' public" if such
information is not a part - of-an
Offer to sell, a solicitation of an
offer to buy, or a part of a selling
to
*
disseminate
"effort."This
.
fundamental
truism
announced at vap^e^rlwd9?t€P in^ *
Commission Releases MoS." '^Q.C
was
A
Hit
[933), 464, (1935)v and 802 (1936) "
Release 464, the late Judge
irns*then"-counsel to theA^bm*-;
il
^'n^iSin^j.atatedr, *.*\v-:'; *
«
FIHST
.
*•.
*
;"v"
."•TA'-":
eyen/teough* your "sub- " v;: "
^transmit' their bUlletinsAo
V>
^
the Act if the subscriber does not
-
-
*
\ATIOXAL
CITY
of A no )<>rk
BAXK
%--•
39
22
Problems of Management
Before
pointing up some of the
future problems of technical busi¬
ness management, I should like to
talk a little about today's problems
also
and
Chairman of the
Mr. Jonsson sheds
see
how
the
briefly to
provide—such
Motors
used
to
"W
m
o o
time
Specially trained
required for their
professionals in
many
fields r— professionals
in <"■
management, that is. To the pres- i ;
sures
of bigness—those of labor, *C
government, taxes,, competition :
say:
the technical
tions
looking
backward to
where
manager
h.
u c
were
handling,
of technical business in meet¬
He reviews the assist automation
can
%
the computer—and foresees need for investment bankers
as
develop technical people of their
to
spend
e
managers
importance.
real
for trade, competition for capital,etc.—was added
Boss Ket¬
tering of Gen¬
t
depth and breadth of professional
ing today's and tomorrow's problems.
Thursday, December 18, 1958
.
experts
the considerably changed and increased scope in
on
.
and
Board, Texas Instruments Incorporated
we
got where we
eral
light
.
in a Technical Business
By J. E. JONSSON*
to
look
are.
Chronicle
The Commercial and Financial
(2538)
have been and
not enough in
seems
who
are
it will be the ultimate
Observes that; decentralization of medium and
answer
new
of tre- 1
one
This
was
-
-
•
for the complexities of coordination.
technological eonteht .and remain '
comparatively simple in this re- ' '
spect. However, many do have it
and
in most lines it increases
most
-
---
-
-
ward to where
to
;:
Jonsson
..
-
-
.
agers
have
„
man-
of technical businesses must '
-
-•
--
,
Erik
J.
al- >
4
daily.-
Thus, today's professional
looking for¬
the
by growing tech- I'
nological content in business. True, : '
.'some endeavors still have little 1
be working well for most companies but wonders whether
to
a
import.
pressure created
competent enough to meet
of the businesses they help finance in working out solu- J
appropriate for both.
large firms
we
own
mendous
a good job of it, too. Because
solid
understanding
and
his problems were small, his in- oriortHfiftn
dicHnliWi
trend in sight.
frequent mistakes usually were ot orientation in fields and disciplines:
'
the same order, and seldom seri- lar afield as well as in:the usual
Professional Manager
ous
principles, procedures, and pracin such, an atmosphere of comment, per se, came of age would are in a cold war different from
In
the
30s,
things
changed, ticcs of business life. What the
help us understand why we do anything previously experienced, plexity and change, the profes- Greater pressures developed, witn ;0u( rGOUjrGS io nn+
much
a
Since the early days of World sional manager has been forced to more serious impact and implicasome of the things that now are
-n
!
War II, we have seen the real becommon practice.
accept additional responsibilities, tions of danger.
To meet them, specialist i l one oi moie neias as
ginnings of big-time research, and solve a maze of new and puzzling the individual entrepreneur either a generalist in all.
Past Fifty Years
the development of nuclear energy
problems, develop fresh and often had to equip himself with knowlThat is what many of our most
pus through media such as radio,
'.;! TV, cables, and the like.
In the last 50 years we have
be." This is true, and yet I think
survived two wars and a so-called
a review of the background of the
first 50 years in which manage¬ police action in Korea; now v/e
want
we
4
■
world
a
of
change, did
accelerating
and there is no diminution of this
-
-
.
>
-
.
.
let's think a bit about
happenings in- the past 50 years
that have changed the way we
view things compared to the way
First,
fathers
our
saw
them.
First, there's transportation. In
the early years of the century,
most inland transportation was by
railroad, horse and buggy, and a
few primitive cars and trucks. The
airplane was new and intriguing,
but not, at the ^time, important.
Today it is different. The jet age
is upon us, and, in essence, pas¬
senger transportation via the rail¬
road is obsolete. Today's highways
and skyways make it possible to
transport people or materials al¬
not only
novel
but
seek help from those who
possessed such knowledge.
This ]S what they must become to an ;
era marked the. real beginnings even greater extent in the future,
readily to change, to find prompt, of the professional manager, a Our manager can surround himadequate solutions for his prob- man who got his-job because, he seif wjth the required specialists :
]erris, to make decisions on which had
specialized knowledge -and .
..
<.nGf.;fif>
;n which hi<?
the welfare and indeed the fate of abilities the business required, and 1,1 ine spec
for destructive purposes,
peaceful uses.
Some of
our
technology, indeed, has outgrown our ability to develop apfor
propriate social patterns.
We have lived in a highly cyclic
economy,
complete with several
wonderful booms and at least two
or
three
first-class
_i.?"|
.
_
recession
Of
lr|steacimention
speak
inflation and
in
the
subdued
tones
usually reserved for the dear departed.
We have
techniques of management.
Alhe has been driven by the
necessity to adapt quickly ana
seen
government grow
edge in
new
different fields
and
e,lf.f.G<Sefi1i
successful
mana^v?
managers
m-c
are
today; it
;
or
wayS
.
.
.
many
"P*? T lhos,e
"°?',\
fSS^ ZC
politely of
busts.
and
concepts
unique
or
~
not
others might depend.
Now, problems-business prob— created
the need for the
jems
1Tinrintfrtl.
™
in
owned
a
in
stake
Tn
the
is,in vol ved, but he, him-f
.
40s
and
'
m?PrnrUM Lrl and Pl"oblem
company
self, must possess sufficient knowl-
the company.
r>a«n<r
fivof
t'feth?r*f
because he
50s
-
Dressures
piessuies
.
e('Sc in these fields to guide and
®
.
.
.
steadily mul- direct
iUTas
their activities, establish :
^ss^na? '^
them.
That
the day of the only in number, but in complexity work
with that of others,
«
•
/
was
'
—r
-
.
n
.
i.
i
f
family enterprise or the 'individfrom modest proportions to mas- uai
entrepreneur who owned the.
sive size, with almost terrifying
business and fan it, too. Operat-L
most
everywhere safely and built-in expenditures for multi- ing a business was a comparatively :
famous programs, many of doubtquickly by car or plane, 4
simple matter then, and one man
In earlier days most communi¬ i.ul value. We have lived through could pretty well keep his finger
cation was by newspaper and by an era of uncertain political cli- on an phases of it. He didn't have
mate 111 which we have veered
t0 contend with the pressures of
mail, and a lot of that was quite
from isolationism to international
slow
of
necessity.
Today
our
^ig government, big competition,
knowledge of events in all parts -ism, but with increased budgets jjjg taxes, big labor and the mahy
of the world is almost instantane- regardless. Through all this, taxes other
bignesses today. He ran the
.
-
have mounted steadily
*An
47th
ment
Bal
address
Annual
by
Mr.
Jonsson
Convention
Bankers
of
Association
Harbour, Fla., Dec. 1,
the
of
at
the
minor
Invest¬
with
only
relief.
America,
abundantly clear that
1958.
we
live
BEAR, Stearns
"
'
1
I
wh0le -show,
knew most or all of
employees
personally,4: and
steered the business course pretty
much by "feel."
Customarily, he
lais
These and other events make it
•
in
&
x
7
Members New York Stock Exchange
INDUSTRIAL,
MUNICIPAL
unlisted
NEW YORK
FOREIGN
AND
UTILITY,
PUBLIC
RAILROAD,
SECURITIES
trading department
Wertheim & Co.
CHICAGO
MEMBERS
New
American
Stock
Commodity
New
Teletype: NY 1-483
York Stock Exchange
Exchange
York
Coffee
120
York Cotton Exchange
New
Exchange,: Inc.
&
York Produce Exchange
New
Sugar
Exchange,
Inc.
Broadway
1-484
.
..
v
1-485
New York
5
Telephone: REctor 2-2300
cables: Wertma New York,
,
V-
.'
*■'''■■
41
Volume
188
Number
channel
the
total
5804
effort
...
The Commercial and Financial Chronicle
Now, with
use
indulgence, I'd
your
parts
some
•Instruments
last
v
Case History
A
to
23
toward
achieving the company's goals,
like
(2539)
of Texas
history over the
to illustrate the di¬
case
12 years
versity and complexity of the kind
/of problems referred to.
I use
:
events
•Saw it
and
of this - history because I
happen and took part in it,
therefore know at first hand
"Of; the
v
bruising
impact
.on
our
managers of the many difficult
decisions which had to be made.
We
were
~
faced with wide economic
swings,; rapid growth, wide geographic dispersal, international
taxes, exchange and transfer prob;lems, excess profits taxes, dealing 1
"With government agencies, rede-
*
"
termination
'
tion, and
These all
*
a
of profits, renegotiahost of other problems.
,
illustrative of rapid
are
change, the need for management
flexibility and adaptability, the
'requirement
for wide ranges of
ability, the remorseless challenge
imposed on management people
to
grow
with
the
job
or
be
run
"OVer.
from
began in 1930 as Geo¬
physical Service Inc., or as it is
more
generally known in the oil
business, GSI. It pioneered the use
Of the reflection seismograph to
explore for sub-surface structures
likely to contain oil or gas depos¬
its. This remains today as an im¬
portant activity of our company—
our
clients being the major and
large independent oil operators.
Near the end of the
GSI
was
group,
sold to
thus
year
1941,
small employee
a
marking
the
begin¬
was
acquired.
end of the
However,
war
the-
by
Not
only
were
activities
rather
company man¬
structure
tary equipment was engineered,
and
built, including submarinehunting devices, and in the proc-'
ess
considerable
fields
closely
know-how*"tn
allied
to
our
was
t
Organized"
server
In Figure 1 we can see that the
own: 4£46
organization
was very
simple.
with
here, indeed,
a
growth
the
laid
on
was
be¬
coming functional. Observe that
$5,790,000 and income of
$262,970 in 1949 were slightly more
sales of
number
of
creased about 60%
In
Figure 3 we
of
that four
the
of
1946, while
employees in¬
had
tion efforts had been consolidated
in
wholly-owned subsidiary com¬
panies of Texas Instruments, the
parent. The geophysical compa¬
nies
were much more functionally
organized and had made distinct
progress in developing their own
marketing unit. The parent com¬
pany
had now developed cleat
lines of control and good proce¬
dures.
By late 1953 it had acquired
subsidiary, Engineering
Supply Co. This was, and is, a
small supply company serving our
a
new
own
business
and
exploration and
companies in the
that
of
other
manufacturing
Southwest.
It
the prog¬
served the purpose of protecting
supply lines and amplifying them,
as well as presenting an
opportu¬
in the next
nity to grow with the growth of
to 792.
can see
company
years.
business
You will note
company.
in¬
manufacturing activities;'
organization for the work
the
the nucleus of
was
net
company
ress
possibility
our
stage
development.
Now
the organization has been broken
into two separateand distinct
units—one for exploration and one
for engineering and manufactur¬
ing. Increased stress began to be
enough to impress the casual ob¬
Loosely
that
$123,295, and that com¬
employees numbered 554..
In Figure 2 we see the next
of
time.
"Activities
chart
than double those
amorphous,' of dollars. In 1946 they totaled
agement control.
Buring World but functioned satisfactorily for $2,283,000—not a very impressive
War H a nominal amount of mili-. the tasks undertaken up to that* sum and
certainly not substantial
ning of the present
was
pany
in late 1945, mili--
loosely organized, but, in addition,
tary contracts were essentially selling activity lay in the hands
complete; and little or no engi¬ of a few top men, each of whom.
neering or manufacturing re-i wore several hats. This arrange¬
mained except that required to ment was wholly inadequate for
carry out the company's geophysi¬ what was to come. It is not im-.
cal exploration activities. Shortly portant for our purposes here that
thereafterj the company again en¬ you try to follow the changes in
tered the manufacturing field, be¬ this organization, but please no¬
ginning with military work as be¬ tice at the bottom of the chart the
fore.
As is frequently the case small shaded area which repre-.
with a company of our then size sents, not the company's handsome
and background, the organiza¬
profits, but its sales in millions
tional
the
come
Our company, or rather its pred¬
ecessor,
The
manufacturing.
now
become
domi¬
the
area.'
Its
sales
in
Continued
nant, and the geophysical explora¬
1953
on
were
page
84
A
•
/ \\
/
The Diversified
.'
■
-
■
•/r''»
•
Working Force
Municipal Obligations
"... L
In
California, the key to
economic " |
our
stability is diversified human endeavor....
We
are
not
industry,
dependent
crop or
dominant j
.
.
.
i
Wherever j
on one
product.
'
r
X
you
turn—to industry, to agriculture, or i
•
-
"V
.
to
our
natural
resources
opportunity for the
use
'
MUNICIPAL
BOND
DEPARTMENT
.
there is unlimited
of
our
fast growing
working force.... Behind California Mu-
USattk of America
NATIONAL
'
nicipal obligations is the strength of this
saving'S
ASSOCIATION
$
unusual diversification.
300
MONTGOMERY
650
SOUTH
STREET,
SPRING
SAN
STREET,
FRANCISCO
LOS
ANGELES
20,
CALIFORNIA
14,
CALIFORNIA
-4
24
The Commercial and Financial Chronicle
<2540)
..
Thursday, December 18,1958
.
Space Strategy and Economic Growth
By JAMES M.
A
prominent American indus¬
trialist recently made this inter¬
esting statement: "The two men
I
would most like
Lieutenant-General
Vice-President and Director, Arthur D. Little & Co., Inc.,
recruit for
to
C ardin
a
Investment bankers
1
SpeUman and
danger
Anastas 1. Miko y a
n.Th~e
Cardinal, if he
as
whether
sions is
the United
States.
were
our
Although
with USSR is
as
is
fraught with
of
much their responsibility to accelerate
it is to hasten
our
In pointing this <mt,
if
investment
ence
and
capable. From his desk in
the Kremlin, he is surveying the
education;
and
more
Gen. Gavin asfcs that wedetermine
deci¬
ices
as
a
vast economic battle¬
ground, rich with promise. And
he is looking at us with the cold
eyes of a shrewd warrior. One
advantage he may be counting on
is that we do not seem to be fully
that
aware
at
we are
economic
abilities.
But first I should like to ask why
we do not take more
seriously the
economic
war.
War in the Marketplace
The Russians
intend
to
are
serious.
increase their
They
produc¬
tion
war.
80% by 1965. Last summer
the Russians threatened our world
A Two-Theater War
One theater of this cold
our
aluminum
war
is
The other theater is the international marketplace. The
space.
markets by undercut¬
ting the world prices two cents
a
pound. Last summer, too, the
Soviets stepped into South Amer¬
to offer Argentina $100 mil¬
strategy
ica
and
lion for oil development in a bar¬
ter
arrangement.
In
the first
quarter of 1958 the Sino-Soviet
of the one is military
technical; of the other, eco¬
Sputnik" I alerted us to
nomic.
the fact that
the
not leading
we were
technical
race
in
age. Now Khrushchev has
declared economic war on
has
his
announced
seven-year
plan.
the
produced
openly
and
nomic offensive of the communist
space
us
ambitious
world is
.
Our survival depends upon suc¬
cess
in
conquering space and
ability to compete in
equally vital economic war.
upon
bloc
steel than
did the United States.
The eco¬
the
our
is
more
gathering steam.
Political and economic warfare
their primary weapon.
They
hold
use
fire-power in reserve and
the threat of nuclear combat
as
blackmail.
said
Thomas
last
Coulter
February: "Soviet bloc
want to talk about the space war tradesmen are everywhere these
hnd indicate why our technical days. One by one they are attack¬
advances in missile development ing the key areas.
They have
many trading advantages.
They
*An address "by General Gavin at the
have no hesitancy, for example, to
47th Annual Convention of the Invest¬
sell below cost.... They are will¬
ment
Bankers Association
of
America,
Bal Harbour, Fla., Dec. 2, 1958.
ing to extend long-term credits at
These
are
related.
Later
on
I
,
.
.
interest rates
as
low
as
2%.
machinery which they offer lack
Since their aim is economic dis¬
standard of liv¬
other cardinal ele¬
many
total strength in the
our
<
this, we must set
higher goals for our econ¬
We are growing at little
even
omy.
better than 2 %.
does not keep us awake at night.
We have the highest standard of
chrome but are rugged and sim¬ living in the world. One publicple to operate and are often bet¬ figure has expressed our national
ter suited to conditions in primi¬
sense
of
satisfaction
"We told
tive areas than ours. When it them it would be good, but we
combs to recruiting trained en¬ didn't know how good it would
Our gross national product
gineers and technicians who will be!"
take up residence in the far-off is $440 billion this year.
The
places of the world to train the Russian gross national product is
local workmen, the Soviets have only $80 billion. Ours is five and
no
problem.
Ivan goes where a half times larger. With such a
Ivan is sent. And, when he goes prosperous
economy
and great
he speaks the language."
technical progress, why should we
In their strategy, the Russians feel alarmed at the blustering of
khow how to use art, religion, all Khrushchev or the strategies of
the symbols which are powerful Mikoyan?
"
••
V
in a war of persuasion.
Together
I think it is probably our high
with military threats, propaganda,
GNP and our sense of well being
and diplomatic moves, their eco¬ that
prevents
us
from
taking
nomic
strategy can provide a Mikoyan's tactics more seriously.
critical difference.
our
so
may
In order to do
uses.
The
that of
long pull.
so
world
or
for
enhance
we
Since
ments of
same
technology into civilian
times
great proportion
produce are luxury
a
is the price of our
be pricing our¬
selves right out of the
world
markets.
At the same time,, we
are not spending
enough on na¬
tional defense, we have hot sig¬
nificantly intensified Our efforts
in science, education, health-serv¬
focus; more spent on defense, sci¬
effective translation of defense-developed
daily decisions to lead to the
wants
Lt. Gen. J. M. uav.n
an
what
half
a
Russians,
items.
total productivity
our
and
ing is high,
goods. We
advance in the realm of
lack of total integration and the freedom to make our own
five
the
superior to the Russians' method, and suggests we cease making day-
banker, would probably ofm it."
Mikoyan is one of your most
dangerous opponents because he
is
economy as
as
war
to-day decisions and leaving the long-run outcome to others. TTie General
And
R$ikoyan,
he
and that it is
war
battle of the decade/'
president of
the
biggest
company
in
told the economic
missiles, rocketry and technology—-in fighting "the great strategic
space,
the c4dt4i,
would
be
the cold
are
slowly growing
too
our
chosen
hadn't
ficient for the economic battle. V
Cambridge, Mass.
dustry are
It is not
sign of military strength, and
indeed, it may not even be suf¬
a
in-
American
insurance of survival.
no
GAVIN*
tl, S. A, (Retired)
our
This is too slow
good.
own
Rocke¬
The
feller Report suggests that a 5%
rate of growth would add greatly
to
national
our
that
resource
could
we
finance
base,
vast
so
ex¬
pansion of outlays for national
security, international economic
cooperation, and services such as
education.
Leon H.
Keyserling
wrote recently that we must plan,
for a $600 billion economy in five
years. A high GNP is not the an¬
swer—it is the rate of growth we
need.
The
economic
investment,.banHfrs'
war
war.
is
the
You are
Mikoyan's opponents in his tac¬
tics for economic dominance:
command
the
capital.
You
You
are
battle of the
in the
commanders
marketplace.
The
Because
Race for
you
Waldemar
Space
command capital,
important role in
Nielson, in "Harper's you have an
Magazine," gives this complacency the other theatre. In the realm
a name: "abracadabra syndrome," Of space, in missiles and rocketry,
ruption, their economic moves are
easy. They are not trying to put which takes the form of juggling and in the economic and techno¬
shaky countries on a stable and statistics about GNP's and Ph.D's logical realm of the problems of
viable basis—but where $5 mil¬ until
a
figure results, proving all these together will be fought
lion at the right moment, may, that the Soviet economy is on the the
great strategic battle of the
in the long run, only wreck a
verge of collapse, that our meth¬ decade. We need to invest more
country, the Russians will supply ods, education, technical achieve¬ heavily in these, for it is clear
it and take propaganda advan¬ ments are the best of all, and that from missiles and satellites
tage.
will come the weapons and de¬
therefore everyone can relax.
The GNP Delusion
But the
war
in the marketplace
This
syndrome
is
familiar
in
history. Carthage suffered from it.
Carthage enjoyed enormous pros¬
fenses of any
the future.
military combat in
This is
clear that
so
I will not belabor the point.
Our
investment
in space pro¬
perity and was flourishing when
ihe. was destroyed by her Roman grams designates onlyr a small
percentage for hardware.
The
competitor.
real investment is in research.
Much later, Rome had a Gross
Conquering, space is a. research
National Product without prece¬
problem, of enormous breadth.
dence. Her wealth and splendor
We
must
develop metals, like
were unsurpassed when the Van¬
beryllium, .that can take, high heat
dals and Visigoths began their
and friction. We need fuels, arid
onslaughts. Neither Rome's great
accurate, very tiny mechaniibal
engineering - skills, its architec¬
devices, electronic devices. And
tural grandeur, its great laws, nor,
aside from the engineering prob¬
in last analysis, its Gross National
lems of no mean proportions, we
Product,
could
prevail
against have
serious medical and psycho¬
the barbarians.
Their GNP was
logical problems to solve before
negligible. Nevertheless they ran¬ man can
go into space. Yoy have
sacked the mighty Roman Empire.,
Continued on page 47
The Gross National Product is
Underwriters and Distributors of
Industrial, Public Utility
and Railroad Securities
State, Municipal and Public Authority Bonds
F. S. Smithers & Go.
ESTABLISHED
Members
New York Stock
5
Exchange
American Stock Exchange
Pacific Coast Stock Exchange
-j
1
WALL
fS57
STREET
.......
,
„
^
RUSSspLMNG
gan prancisco 4, Calif.
New York 5, N. Y.
„„„„
Teletype: NY1-1671
1857—107 Year*—1958
j
Telephone:
GArfield
1-2851
Teletype: SF 613
I
!
Volume
Number 5804
188
.
.
The Commercial and Financial Chronicle
.
25
(2541)
Report of
thorough, but concise, report
A
Sales of
by the Municipal Securities Com¬
significant activities
and developments in the munici¬
pal securities industry is presented
by ' John
M. Maxwell, of- the
Northern Trust Company, Chicago,"
headed
industrial
'
r-
in
market
bonds and (2),
the
h
s
a
v
"
*
market
the
Bonds
summer.
duringrthe
terii
e a
eh
e
d
Ml-time"
of.
an
sales of about
Maxwell
at
20 bond aver-
yield basis
a
and
Jan, 2 of
continued
on
the market
satisfactory level through the
months with the average
at 2.92%
on
July 2, the higher money rates
supply of bonds during
the. summer caused a sharp drop
and large
the
in
the
which .took
market
3.59% on Sept. 4. The
market
has
subsequently 1 eased
somewhat with
the
average
at
3.31% on NoVs, 21.
v/
average to
..
Summarized-below
the
principal
are some
of
activities
Committee during
of
the
the year:
:
Procedures
work
The
mittees
of
several
during- the
subcom-
has been
year
have
jplify
recommendations to
facilitate
and
,
willv be
cussed
during
Forum
in
"Syndicate
ment
a
sim-
marketing
pnd operating procedures.
objectives
are
been
an-
:*/rurtis>irvoi
tra
Municipal
IBA
dis-
should be legibly printed
on
panel discussion on
^
the
by an
or
Copies - of the Report of the
avail-
fWnmittPP
A
r'ne
Trust Company of Western
N
York
scor)e
executed
^ cnhspnnpn^+Jfnc1
and in subsequent trans-
opinion,
Gf
Npiv York Citv^
tbe
work
of
thi*
in<jicated
by
its
name,
is
;
Tho
«PnGrai
tirohlpm
more
than
five
the
fore
House
This
Aug. 1 voted 187 to 173
on
not to consider the tdk
Subsequent developments have
confirmed the validity of the evi->
submitted
dence
Congressional
change
is
effective
;v'.v
with
is
there
no
by
i
.
n
the
IBA
committees
need1 for
JfspejJ ^° bonds« acquired v
after public facility loan
31, 1957.
hroad-
on
This bill was defeated when the
years
;
Committee
Banking and Currency.
tion.
because
of
opposing the bill at hearings be¬
from the date of acquisi-
Com¬
the Committee is considering the
ent;rp
Banking and Currency and
submitted an extensive statement
House
after acquisition,
or ;
- vy(ii) bonds on which the ma¬
turity or earliest call date
is actually broader than is
manually
a
.
ized Federal loans, to municipalities for the construction of public
facilities at an uucxcm laic deiatuiuca at
interest rate UC"
(i) bonds disposed of within
AHvpr-
nn
V:i
except
(c) Advertising Subcommittee
purchasef ?at the
onH
/•
i
on
(a) to amortize premium on all
tax-exempt bonds sold at a loss;
(b) to amortize premium oh
tax-exempt bonds sold at a gain,
specified bond attorney.
a
Bonds was apby the paying tising Municipal under the Chatrpointed »hls year
official of the manship of Fred Stone (The Ma-
there should continue to be delivered to the initial
ye^
;
30 days
to^er, but body
the issuing
d
...
Qualified approving legal opinion tax-exempt bonds:,
back of municipal bonds and the
anAp^reet' copy
and correct
Adopted
S. 3497,. which would have pro¬
vided- the Community Facilities
Act of 1958, would have author-'1
:
.
.
.
to
that
Federal
a
program,
,
*
'
Where amortization is required, cay demonstrated by the facts
bonds
recoenizine that advertis- the effect is to reduce the "cost" that (1) the high volume of mube furnished to- any purchaser -n
js'one aSpect of this problem. of the bond for tax purposes by nicipal financing in 1957 and early
who specifically requests such a
— —— jr-——• the amoun|; 0f premium attribu- 1958 had led to record
nf
copy. The full text of the resolu- (d) Operating Procedures
table to the period which the
K1.
tion approved by the Municipal
The Municipal Securities Com- bond was held by the dealer. The
<?TSecurities ^ Committee,- together mittees of the Central States Group amortized premium
on
tax-ex- awards- for public construction
with the Report of the Subcomand the New York Group have empt bonds is not deductible.
r during recent months and (2) the
"
actions a certified or photo-offset
copy of the legal opinion should
enjn2
market
municipal
for
,
tviiTT/iA
io
nnntomn/1
in
AnnonHiv
A
"]'tt';e.1f conta'nedAppendix A.
(b) Liaison Subcommittee
.
been
worki
on
.
..
*'
■
•
.
."
A copy of the text of Section volume
recommenda-
procedure in
Subcommittee, un- £
*
."
der the Chairmanship of Walter bond deliveries. Further considW; Craigie (F. W. Craigie & Co., eration will be given to these recRichmond), has held three joint
meetings' during the year with
representatives of the Municipal
75 of th^
of municipal financing
Revenue Code during 1958 has reached a record
hi_h
wiah
members in the United blgh tQ ^fure a
leveL ^
as amended by
this law was sent
to all IBA
States on Aug. 21.
,
.naanrf>
~ -
.
„
Continued OKI
page
49
baw Section of the American Bar
a^d
the
Municipal Forum of New York,
The principal topic of discussion
litigation
certificates.
The
Underwriters and Dealers
IBA
Municipal and the Municipal Forum of New
Procedures
of Bonds."
>
195T-
o£ *^11I,"*er?®11
testified against this bill at hearfue Codeto require dealers in ing before the Senate Committee
addition to delivery of an tinaualified approving legal opinion
These at these meetings has been no-
further
the
-
(b) Community Facilities Aet Not
ommendations and it is expected
that there will be BUUScqucUl aduidi UiCXC Will IMS subsequent aU-
°f A no-htigation' certificate, in
by
Committee.
directed with; considerable success
toward
in
(!) legislation be adopted in the ditional recommendations dealing termined under a formula in the
states f° provide for a final judi- with other phases of "operating bill if the financing was not otherwise available on equally favor¬
cial determination of the validity procedures.
able terms and conditions. After
o£ municipal bonds and that.(2)
^
passing the Senate, this bill was
hie contract of sale between the
®
'-EyY
reported - in
the
House ; with
issuer and the underwriter should
/ Federal Legislation
amendments ito authorize $2,000,provide (through a provision An
Amortization of Premium on
000,000 of Federal loans at an in¬
jbe
bf sale or m the bid .
Tax-Exempt Bonds
>
1
!
terest rate which in May would
form) that the obligation of the ■ ■ ^ToiWn&ni uT ""v.""'" 'iS:77*r
ond^writer to take delivery of .SectionJ of the Tecbnica have been 2%%. -5 ;> - rvj
the iJOMds/TS .Subject to^delivery.
Act <^1958 amends . Representatives of the .IBA
The Liaison
Marketing and Operating
the
that
originally
as
the length of time the bonds were
held.
:'. yJ,•?"•.
:l.,
possible and practical, a copy liaison Subcommittee are
of the complete final legal opinion able. (See Appendix D.)
agent
deplores
appendices of the Committee's report
ever
June 5 and at 3.05%
on
Bill
empt bonds, regardless of whether ;
they were sold.at a loss or a gain
and.regardless of.the.maturity or
to
concern
report ed in greater detail for the benefit of
they will be obligated to take delivery of only .uicxi n.cMuic bonds,
ut
uiuy.. marketable
wuus,
It is recommended that, when-
-
Bond Buyer s
a
the
by
Securities
relatively happy circumstances with
al
fhn?
proved
>
I
Af+°f +hGir ^7,000,000^000.
2.97%
which
of
now
Kv
nrntin^-
After the year opened in
age
and
tembet
1958 will reach an all-time
the
.
available, were submitted in Sep-
i
$5,600,000,000 during the corresponding period in 1957). Thus,
it is certain that sales for the full
-
•;
-
committee,/copies
508,000,000 :inu
over .6,110 issues
(compared with
l
Spring Meeting
and recommendations of that sub-:
high £
o v.e
year
IBA
on
subcommittee was
appointed under * the ChairmanShip of Francis R. Schanck, Jr.,(Bacon, Whipple & Co., Chicago),
to consider a proposal to print on
each municipal bond a copy of
the complete legal opinion cover-.
ing the entire issue. The Teport
months of 1958
i*
.
.
the
this 'year,: a
lis
nieifialbortdsr
v
Opinions
Legal
-uvuuB
After
Sales bf mu-v l
are
y\-~
(a) Printing
during
first
accomplishments
£ interested bankers in the
(
rp
of Federal financial bills of
success
;
.
brehk-iAthe"
'4iS>
recalled
have- required dealers to
amortize premium on all tax-ex¬
problems. The principal Federal and court decisions, legislative activities,
out¬
of
■
be
Tax
reported, in- the. House
bonds, and praises highly attempts to solve metropolitan
revenue
and other
municipal
(1) the record
municipal
sales
of
'i
.
reveals two
1958
standing features:
volume
.
of the
review
A
area
of Report, including Ap¬
.
In its annual .report, the Committee,
the industry, calls attention to availability of model revenue bond law,
Investment Bankers Associa¬
Text
-
will
It
.
Technical
by John M. Maxwell, explains the accomplishments of its several sub¬
committees, notes defeat and
tion of America.
pendices, follows:
$7 billion record high for 1958
a
would
convention of
to the 1958 annual
expected to reach
are
by Municipal Securities Committee.
mittee of the
the
municipals
—
.
Allot-
York have recommended that, to
obtain the best bids
bonds
by
assuring
on
municipal
bidders
Corporate bonds
that
i;
common and preferred stocks
state, municipal and new housing authority bonds
toll road and other revenue bonds
Clark, Dodge & Co,
ESTABLISHED
1845
Members New York Stock Exchange
Eastman Dillon, Union Securities & Co.
61 WALL STREET, NEW YORK
NEWARK
MEMBERS NEW YORK STOCK EXCHANGE
LONDON
STREET, NEW YORK 5, N. Y.
15 BROAD
PHILADELPHIA
CLEVELAND
PATERSON
•
CHICAGO
•
CARLISLE
•
READING
•
EASTON
•
•
'
LOS ANGELES
•
ESCONDIDO
•
SAN DIEGO
•
BOSTON
Correspondents in
ST. LOUIS
KANSAS CITY
•
HOUSTON
DALLAS
PITTSBURGH
•
TORONTO
•
•
•
•
LAS VEGAS
'"Sj
RICHMOND
ITHACA
*
SHAMOKIN
HARTFORD
•
NEW HAVEN
•
SOUTHERN PINES
.
..
.
BALTIMORE
•
LA JOLLA
•
SAN MARINO
.
•
.? VENTURA
..vt,
.
NORFOLK
;
GREENVILLE
-yn
-I
The Commercial and Financial Chronicle
26
.....
(2542)
Committee
Report of IBA Industrial Securities
'
Noting
the
special
financing-plight facing medium-sized companies in future
efforts re-,
cently made to help small
business;
toric ability of
of medium-sized
banker; What investment
companies being;
bankers
ditional centers of finance, is
neglected, particularly because of;
the growing concentration of in-;
stitutionalized
equity
financing'
of
can
;
(2) Investment Companies—In¬
headed by > Los Angeles
leaders, is stressed by IBA Committee
funds, the Industrial Secu-;
rities Committee raises the spectre,,
tain
above the $60 bil¬
lion total at the end of 1949.
fiduciary and institutionalized holdings in investment
concentrated growth of
financing needs and his-;
large firms to ob-"
meet its
be about 80%
because of
years,
Thursday, December 18,195a
do, particularly; those outside
outlined with stress placed
vestment fraternity) i&r& medium p
continuous sense;
upon
responsibility for enterprises and securities
taking: place,William ,SV
1 /
ency of some to become Public
Hughes, of Wagenseller & Durst,
Inc.,: Los Angeles, Calif., is the
Chairman of the Committee that funcjs—and secure additional fi- erally appreciated, the
made this study which was given nancing in that manner. However, so-called small business
to the Investment Bankers Asso-; ^his source^ of funds is limited ceiving serious and effec
Anti-Trust sideration; such as is demonstrated : * £ This/ concentration r^of; private assets# of members r o f #i e Katr^nai
ciation at their 1958 convention,^1 eventually^byj -the
a-*-"1™'-* ci^wotinn *hv.k- oc »c riom,
Laws. How; then,
will the me- by the Small Business Investment ' savings is Targeiy the' r^sulf ;0f'AssociatiebV(^^I^
Text of the Report follows:
dium-sized
industrial
company Act of 1958. The future problem the broad redistribution of wealth |panies rose ; f^m^ $2,8^ billion to
now
f
'
_
fare in its search for
The Medium-Size Industrial Com-
Significance
•
j
panies—Their
r
Their Plight
In
Economy
•
•
'
-
,
an
•
and
i
Already visible on the horizon
and
becoming more evident each
year
or
;
1970?
equity capital
;
.
is a corporate fiscal difficulty
facing a large sector "of ouf na-
—
fact
decade-
decade
t.
from
it
cannot
annotbemeasured
omy.
sector is of
fions'of government, in interest
euch
and
responsi-:
bility to
name a
our
discusion
h(>nal buying power.
access
^
i.
That is, it to S14 billion at the end^ot 1857hi
Stte
at
baizes the amount .
their attempts
to
the
If
William S. Hughes
ade-
secure
quate financing in future
years.
medium-sized com-'
valid need for equity
can almost always ob-
Cor today the
with
financing
pany
a
more
financing from one or
investment bankers, who in
turn
can
tain
sucn
obtain
or the imbalances between
supply of and demand for in-
vestment funds of various
in
concerns
the
funds
froni
ent
we
are
types.,
to maintain our pres-
standard
of
living,
to
say
nothing of improving it; there
be a great and sustained gain in
productivity; to accomplish this
there must be a corresponding in-
creasemin
the
capital
investment?
/If
necessarv
success
with which
our
capital funds
historically
have
year
among the more pro¬
nounced examples of institutional
growth. As a result,>our, capital
markets have become increasingly
dependent upon institutional iiW
vestors for the supply of funds to
meet the demands of business and
meet the demands of business and
affectoj'
nrofession
point to be amplified later. Sec-;
©ndly, as of now, these companies
©an merge with larger corporawhich
are
are
and homes. Toclay financial insti-
bonds outstanding. In the case of
'
capital
performs its function as a bridge
less difficulty^in securing adequate
of being created. : These
companies which have growth
.•
~
.Ua
opportunities
and
will : require- insurance x^to vthe^control o^ the
Fa^tate companies, savings and
substantial new capital,^ particu- loan
associations, mutual savings
larly of an equity capital nature,
banks, and investment companies,
Our particular concern here; is among others. For example, over
with one general development in among otners; J?or example,^over
recent ^cades^hich tox
our
ability to meet the equity;
keen a striking increase in
capital needs of this crucial seg-!
j households in this country which
capable
These
ment ii
private investors.
This form of
financing is facing difficulties in
the years ahead-the important
tions
'OY
nancial institutions, > have caused:
the great bulk of .new funds to.
_
ness,
: proportom
s?Y*d.aS?°.rfinS billion at year end; 1957), is-m
the inclination.of the individual, ..trusteed^form. At the end of 1957; '
^ck; of .investment experience- the ^o» value, of ttiese. trusteed : ,
-
nitely
facing
medium-sized
industrial
•
Pii
ZuS
the
plight defi¬
j
v
*
by the middle lncurae individual, pension funds was about four and
9*
imumc income xnaivtauai,
iunas
aooui n
wlnnmpnts. such
Reference is
™™
to public securi(ies markets lor its common stock,';>
reasonable
roughly equivalent to eligibility
velopments, such as inadequately
as inadeouatelv-- for listihrr ntx cnmp of the national
met capital requirements bf any
y.
major segment of American busi¬ stook marketability •, existing ■
is in order.
made to
.
of
important for us to be aware of
any
weaknesses in the capital
market that result from these de-
profession that
this
ent industries. HowevCT. the type
invest-' of company considered - here 'is■
individuals, to' large enough in its business and
few factors. It is especially financial measurements to justify
habits
^
htrnds ot life insurance companfe*
rates, U the savings and
ment
-
<tl
This
concern
of mutual funds, as opposed to;
proportionately. Also-, the real in-; corporatepensionplans. ManyOf
corporate oension plans. Many
these
funds are ? placed; in ;;th©
a
econ¬
r
$13.3 billion. Over half of this increase was due to capital increases
SSS the.eyceedingly rapid growth
by ^
*
tional
,
business world,
economy—is the subject - of this population crossed the economic market price appreciation of portevery
clear-thinking investment
report. ■ V;-, V: a:
,i."y.>a'j.-y[w*.- line from a subsistence income to folio securities.2
banker r is aware of the* rapid
hp PVflpf-rtpfinitinn nf n "trip"uuu1c
""-uiuu uium,
va; vwijwiaw: i cusrou r uuaaThe exact definition of a "me- 'ulc
the "middle income class," the ' (3) Corporate Pension Funds—
changes occurring in the structure
r>
difficult
Percentage of our population able Paralleling these recent trends is i
of our capital markets.
From dium Rtyprf" 'mitiDflnv
In our modern
Expanding
-
in 1965
financing of me-: that- is one of the outstanding dedium-sized industrial corporations velopments of otir generation. As
the backbone of our future an; increasing percentage oL the
the: equity
of
between
capital
industrial
sources
arid
the
.
Trend-Toward'Concentration
Investments in Financial
Institutions
corporations- seeking
,
of insurance and pension reserves,
■
* personal trust funds, and invests
ment company shares.' -This pro
,
,
In recent decades, we have been
; Spedal developments of. the witnessing a. significant evolution
great€St import favor , the largest in the nature of corporate ownerT
corporations in this respect and, ship and control, one which is al¬
to a greater extent than is gen- ready far advanced. It is the conj
,
portion
to
from 10.9% in 1900
rose
17.9%- in .1929
1949.1
* /
;
-
27.1%
in
*
k
.
These; figures
the sharp
and
clearly
indicate
rising importance of in-
and 1952.3
The New York Stock Exchange
has-estimated that"Institutions
this
case
^iq
insurance companies, in¬
vestment
colleges,
other non-profit
non-insured
cor-
companies,
and
foundations
organizations,
Porate pension funds; and mutual
kitut^s as^utjeu for the funds ^ Exchange ill the end
vSue^of at s^ts
Although
data
of .individuals.?
no
there
is
every
to believe
reason
that this proportion has continued
underwriters and
of 1949,
and that this proportion grew to
the
available for years after 1949,
are
15.7% ($30.3 billion) by the end
It
.
to
increase
ample:
-
<
since
then.
For
ex¬
add
should
that if
noted
be
bank-administered
the
we
pert
sonal trust fund
.
(1) Life Insurance Companies—
At the end of 1958, the total assets
of life insurance companies will
distributors
1957.
of
listed
mated
holdings of NYSE
a
roughly esti¬
$30 billion, total fiduciary
of
stocks
Continued
I Raymond Goldsmith, Financial Inter¬
mediaries■ in the American Economy' since
on
page
57
'
4900,
investment securities
page
Princeton
279.
University
'
Press,
1958,
2 National
of
Association
Investment
Companies.'
3
-
*
Goldsmith,
cit.,
op.
page
1
225."
UNDERWRITERS—DISTRIBUTORS—DEALERS
research and
Industrial, Public Utility
'
Railroad and
service
SHEARSON, HAMMILL & CO.
Municipal
.
.
SECURITIES
Hemphill, Noyes CB, Co.
■
■
'
-
Members Principal Securities
Exchanges
Founded in 190'J
Members New York Stock Exchange
and other
Leading Stock and Commodity Exchanges
,
Albany
'
.
Allentown
Harrisburg
Chicago
Lowell
15 BROAD STREET, NEW YORK 5, N. Y.
•
Syracuse
Newark '*
Taunton
Beverly Hills
Altoona
Indianapolis
Philadelphia
Trenton
j-
Ithaca
Pittsburgh
Tucson
Boston
.
Lancaster
Providence
Brockton
.
Los Angeles
Heading
Washington.Worcester
York
*:
r*-'
•
v,ji
—•
Volume 188
Number 5804
.
.
.
The Commercial and Financial Chronicle
-The challenge of the three segt ments comprising the utility in- ;
The Public Utilitie* Committee fight against the inroad* of Statism and the
.
i'
of The Johnson,
Lane,-
are
recapitulated by Committee Chairman Thomas M.
Johnson in his report to the lBA.
Sjpace Cprj^ratioh, Savannah, Ga.,
•J.- Jinr "piesenting,. as .Chairman, the
L'xfepbUc ..Utilities Securities Comf
Data
ih
.'.:r
ersattheirannuar convention. In
capacity
on
31,
Aug".
reported at 136,192^000
an
increase of &3%
a year
ago, although output
the: latest 12 ^months gainted
only 1.4% over the; previous simi¬
lar period. \ New money raised in
presented indicating how great die
i s idfittee report to investment bank:}
was
27
over
are
growth hasbeen irtthis industryand bow largeisthe persistent need for capital.
•
■
,
kilowatts,
1658
Wastry is depicted by Thomas M.
Johnson,
:
r:
generating
problems still at band
;
;
(2543)
)
the first nine months of 1958
was
icY power or
deterred the real ^confidence from these" results that Despite^ the fact "that no action reported at.$1,898' million,: <mly
Ieyiewihg the :successes and prob- offensive. '-C.*y-Yv v'"-:Y.the pubMo Was^becoming more was taken in Congress, the In¬ slightly below. the peak figures
:k; Jems hf ;theUtility4nc[ustryv-Mr: y
So at theYtime of the May. meet-; sophisticated and less vulnerable; ternal Revenue
Service did rule for the first three quarters of 1957
t'\-P i^-^^n^n jcails attei^ioh to Internal j ing of this Association, your Com-; to the nostrums offered by the under Section 1.162rl5 (c) of the of $1,986 million.
:
.
mittee
realized ; thatY no longer - welfare * state. -41
i
* Code that the
'"^t^^^enue*s" ^decision Y*not to, allow
advertising prograiri' h The Gas Industry added ^ another
f "ebsts pl teilihg the private indus- •
begun by .52 independent electric 891,000 cu s tome r s in the year
"stbryvto the public despite the .utilities fought- _alone. : Our Made: ljy -Senator Capeh&rt an<J light and power companies aS far bringing - the present total 'to
Y
; taken, on
Spnng.repurt,-- therefore, .wassagainst Federal
give-a-Wav back as 1941. Was completely non* around 31 million. Construction
.vYv
|he:hiatter.^{0'"**..
Ilfet #the" deductable as a business expense expenditures for distribution and
,;
•
r
.
.
-
are
for, the "year 1956. Censure by fiat transmission
estimated
at
was resdrted to in the absence of ; $1,868 million for the5 year, the
Shis ^ year.; having " served, bur largest ^yer-combine, the Gov-* ot. agenby' must equal the cost of legislation.:
C■ •*; ;;Y; second highest period-on record
V •- 4: time on the barricades, our. repdrt ; ernments*.Tennessee-Valley Aur-funds"
to'the-Treasury plus' an" 'r We; can, however; • record real and close to the peak rate -of
is |of the battlef It is no new thority, .completely -autonomous -amonntJaaeq^ te c6Ver admln-l progress in another direction^ this $1,932 million for the 12" monttis
enemy^ that assails us,; but in the I by providing this ageftcy* witn the istrative" expenses-and risk. These is in* the development of a more ; ended ' June 30, 1957;-1 Revenues
v
modern >gm^
•neanspf, financing its own expan;, bills would have' efectively pro- satisfaptory regulatory climate in for the 12 months ended Jiino 8(H
v
v./ of ^ >Socialismv
sten^ through issues of revenue videa minimum interest rates lor a ;number of the states: We wel¬ 1958 were $6,859 'million rUOeCtbonds.
At the t^e; of writing, all Federal loan
come the decisions in,
Yi •Wis^stUl^e-,
Maryland, ing an increase of 12.6%. ovOr the
programs and
the Senate had approved and the
ancient tyrwouW. have eliminated the sub- Iowa, Florida and' California and preceding similar period; and fiHouse- was considering, in Comr
.• -,v\;.
ahftyuof At tie
sidy given local electric coopera, in the District of Columbia where nancip^. for the- calendar yiat
;. Stat e:;.The
a more
enlightened attitude:" was 1957 amounted to $2,421 tniiiiOn
S"t,tS2othewmTtS,0f.Khe„fCe7 JS'Y tives i" the 2% loans granted by shown toward
We took-.the-stand- that the Rural
Electric Administration',
granting rate in¬ as compared with $£,584" in the
barbarians
the bill offered complete emancl-Great bas been the clamor ot the creases that permitted a fair re¬ year 1956 and $1,413 in 1955. 1
making up its
^
pation and unrestricted license fOfr Natjohal'Rural Electric
turn on a rate base above original
vangpard are
Similarly, the Telephone Indus¬
Cooperatbe proponents of public power tive
f irm ly .ehr
Association
that the '"pro- cost and more in line with today's try revealed further growth. Tele-r
and that at all cost, it must not
t r. e n c h e; d
of
reproduction; phones in service at the end of
pogajg Would force higher power inflated" cost
become law.. The Board of Gov-- bills
Within.^ our
oh-farmers and,drive many There seems to be developing at 1957 were 54,241,000 for the BC11
ernors
of
the Association sup.-; rural
gates;- and
electric systems into the long last a realization that if the System and 9,617,000 for Inde¬
ported our position and passed a hands of private
utilities are to support the growth pendent companies Showing' an
these must
power comparesolutioh against the, legislation. nies.
of - their communities; annual increase of 5.6%. During
first be routed
No longer is it their demands
i
w
Copies .of our. report were Widely g„al amerely to provide electrifi-. they rn.ust .be ip a position to com¬ the last yeai*, new increases made
if we are to
Thomas M. Johnson
circulated both to our
win in the
member-, catibn for marginal farm custom^ pete favorably for the investor's -in telephone 'plant amounted 'to
shm and by courtesy <rf the Edison CrS but to compete with:
World - wide
private capital.-againstf all the alternates $2,572 million and at Dee. 31,1957
war
for the souls of men.
Al¬ Electric Institute and the National utilities" for commercial. and in- open to him in the npn-regulated stood at $22,l42Ymilliori. 1 ,i
;
Association of Electric Companies dustrial.loads.
*
: :
though for the moment the lines
We can only regret areas, of the economy. 1 ;
During the year; the cost of
to most '"embers of the Utility
have held, yet. we hear in the rollthis reform movement made such
The skeletal tables we have in-" money to utility companies varied
tall of Nov. 4, fresh re-forcements Industry. Members of Congress in little headway in the Congress,
eluded in this report indicate how widely in accordance with the al¬
turn
were
reached by these
on. another front.a different great the growth has
advancing and know the battle is
been, in this ternating ease and; restraint ap¬
agents, and requests; , for : extra ube- of attack, was launched to
Scarcely Joined.
;
industry and how large" its per a plied to the money market. Our
In- the established pattern pur* copies were recewed-iir
sisteht need "for capital. Any re¬ tables show that preference for
u^races;prohibit the utihty industryIfronS
Shed" by •: mddernautocrats,; the dented number. The bill died m telling its story to. the public. cession that- general business may funded debt prevailed and equity
first target is control of the elec¬ Committee when thevSSth session Sehator Lahger in attempting to have" -experienced this year cer¬ financing provided only 21.3% of
tric power industry. Recall the Of Congress adjourned, but we can amend the Internal Revenue Code, tainly has little: slowed the pace; the total. It should be realized,
Words of Lenin "Communism is expect to be faced with simihar fead into the record two resold of the three segments- of the Util^ however, .'that; in spite of" this,
pposais im the 86th.
-■
the Soviet power plus the elec¬ proposals in. tne ootn..
tions directing that the Bureau of ity Industry. Plant Investment for
there has been little
The electric
The
last
deterioration
trification of the whole country,"
last, month did internal: Revenue disallow for in* the latest annual period is up in
in debt-equity ratios;
fOvidft
us
With
one : VictoTv
of
andi remember
because; of
the strategy - of provide us with one Victoi-y of conie tax deduction and the Fed- the neighborhood' of-$7 billion and
the size of the retained earnings
In eraj Power Commission for
Hitler and Mussolini in seizing the more than passing interest.
fig- the amount of money raised in
^
- •
°
electric power complex in order Oregon, the home state of two
the market surpassed all previous and funds resulting from acceler¬
any
to control the economy of their zealous supporters of public ...expenses,
ated depreciation. For compara¬
the part of the periods—all this on top of nearly
nations. Eveii observe how every power, Senators Morse and| Neur
tive purposes we show relative
little putsch in the smaller places berger, a statewide : referendurp utilities • "propagandising- against $50 billion of new investment in
of the world proclaims its revolu¬ submitted by the legislature pror Federal
yields on different types of public
electric
power
policies the preceding decade.
»»
tion by a bomb in the power posing amendment of a 1932 conContinued on page 38
For
electric
power,
installed
stitutional
provision authorizing
^
Electric Cooperatives..
plant. Though differing in the
method of accomplishment, the the state to engage in powor de¬
aims of the Statists within our velopment and sale was. defeated
I
midst are to gain the same control. by a four to three margin.; Also
;'
'
'
!p !S. jl® It ^
have- rtade the
,?
Text OftheReport.jallows:
3 :
would
^
iInterest rate on any loan made By
nation's; the
Treasury to any. department'■
-
>
•
.
.
;
„
_
.
,
.
•
.
.
.
-
•
;
.
.
-n_ j
.
.
••
x.
Nor
theirsuccesses
have
inconsiderable
when
been
realize
we
turned down
I
by nearly tv^o to one
proposed $5 million hyidror
was a
that in just two decades the per¬
centage. of investor owned electric
bond
electric
issue
to
I
I
I
install
power
Capacity has been whittled down
from
in
90%
1937
to
75.5%
in
1957. When we count up
the many
insidious inroads against free en¬
terprise,
we
sions that
have
a
snould have
no
illu¬
few recent victories
reversed
the
trend
toward
generators at the Bull Ruii
Water -Supply .source of the City
of Portland, and' in Springfield a
$3.5 million bond issue to finance
the
proposed acquisition of' Paci¬
fic
Power
and
Light
Company's
distribution properties was
down.
We
wish
we
j voted
take
could
S
t
I
1
H
I
.
{
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UNDERWRITERS
DEALERS
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BROKERS
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UNDERWRITERS
—
BROKERS
~
DEALERS
j
=
CORPORATE, MUNICIPAL & CANADIAN SECURITIES
I
I
I
Founded 1879
I
I
\
1
I
t
I
Spencer Trask & Co
I
I
New York
3G Wall St.,
T«I«
JDfifcr 4-3600
25 BEOAD
S
Teletypei NY 1-1828
STREET, NEW YORK 4, N. Y.
Members
f
New York Stock Exchange
s
=
MCMBfRJI NEW YORK. AMf RfCAN
A TORONTO STOCK EXCHANGES.
ALBANY
OTHER LEADING STOCK AND COMMODITY EXCHANGES
NASHVILLE
Offices throughout the
•
-■
_
;
.
SCHENECTADY
I
fj
,
American Stock Exchange
CHICAGO
I
-
GLENS FALLS
WORCESTER
1
Y/l
rl
t
I'.'i
United States and' Abroad
awiiiiiiiiiimimiHiiiiiiiiiiimiiniiiiiiiiiiwiiiiiiiiiiiiiiiiiiiiiiiHinimuiiiiiiE
BOSTON
-
;
"I
I
«
umm mm mm wmm
?
*<*?
.
|The Commercial and Financial Chronicle
28
Thursday, December 18, 1958
...
(2544)
Report of IBA
his
In
'■
'■'*
■
regulation
f
i
follows:
;
0
and
uniform act for simplification of fiduciary
transfers, and also depicts states with model and uniform laws
legal investment laws; presents
security
-s
governing gifts to minors.;
7"'7:
the
•/
■:;;
7 • '•
rv ■*:
-"Variable- Annuities"
,v
77"
'' Nevada
^
New
?
/
:
The Supreme Court of"the U. S.
Organization and Op¬
the. various state securities com¬ on Oct.
13, 1958 agreed to review
eration of Group Legislation Com-.
missioners and their national or¬ the case brought by the SEC (in '*■'7 \'
7
mittees, which
ganization, The North; American which the NASD intervened as a
is attached as
-
"
year
possible with the securities com¬
missioners in their states.
tion
com-
general
of
the
summarized
We
;
1
interest
Committee
V
below.
are
'
Harry Beecroft
'
-
;
concerning the regu¬
lation of the sale of securities a
lative work
basis
and
objective
this
Amendments
legis¬
comment that: "In all state
to the
Connecticut,
Acts
Mississippi
York
are
of
and
in
summarized
New
Appen¬
dix B.
dot
";
•
"variable
sale
annuity" contracts
such
7.
:
•
; '
77:7;'
under the Securities Act of
The Model Act for. Gilts to Mi¬
1933 and unless the company was
which was used prior -to
approval of the Uniform Act, has
been adopted (with some modifi¬
cation in
certain states)
in the
following 10 states and the Dis¬
under
registered
Company
were
nors,
Investment
the
Act of 1940. The Federal
Court
District of
the
for
3, 1957 dis¬
the U. S. Court
of Appeals for the District of Co¬
lumbia on May 22, 1958 affirmed
the
and
on
the
Sept.
trict
case;
of Columbia:
•
judgment of the District Court;
the U. S. Supreme Court has
Colorado
be
to support or
to
such
person.
person
maintain
is
7-.
'•
..
the
to
_7,.;;^-77 77>
.
.
obligated to
the donee,
taxable
;:(c) The Internal Revbhue Serv¬
has ruled that the value ; of
ice
I property
transferred., by
donor
a
to himself as custodian for a minor
donee, pursuant to the provisions
of the Model
Act,; is includable1 in
the donor's gross estate for
fed¬
estate tax purposes in the
eral
.
while acting as
the donee
event of his death
before
attains the age of 21 years.
It ap¬
that the estate tax conse¬
quences might be avoided by ap¬
pointing as custodian some person
;
pears
District of Columbia
Georgia
.
now: agreed to review the oase.
recognition of invest¬
;
Michigan
In
Virginia, Senate Bill 148,
Bills were introduced again this
New Jersey.
banking as a profession in
which would have given the state
which only responsible and honest
New York
year in the New Jersey Legisla¬
Corporation Commission bread ad¬ ture to authorize insurance com¬
persons should engage. Thus, state
North Carolina
ditional authority to deny or re¬
Ohio
legislation regulating the sale of
panies to sell "variable annuity"
securities is at its best when it voke registration of securities, was contracts in that state. At hear¬
■\;;7'
Rhode Island
defeated.
The Virginia members
South Carolina
protects the investing public from
ings on these bills on May 2 before
of the IBA strongly opposed adop¬
the Committee on Business Affairs
irresponsible persons whose judg¬
Since there have been numerous
ment is tempered by greed, but tion of this bill because they be¬ of the General Assembly of New
lieved that the Virginia Securities
permits the orderly conduct of the
Jersey, a representative of the IBA questions about tax considerations
securities business by responsible Act already provides adequate au¬ urged that such legislation not be in connection with gifts to minors,
we again summarize three of the
and honest persons with a mini¬
thority for the Commission to deny adopted until "variable annuities"
mum of regulation."
principal tax considerations in¬
are subjected to the same regula¬
or revoke the registration of se¬
tion as other securities. The bills volved:
The statement also emphasizes
curities.
We commend the Vir¬
that honest and intelligent admin¬
subsequently passed the Assembly
(a) The Internal Revenue Serv¬
istration of the law is equally im¬ ginia members for their successful and, at the time that this report
ice has ruled that a gift under the
was prepared, were pending before
portant with sound legislation. opposition to this bill.
a
Committee of the New Jersey Model Act was a completed gift
Senate.
.7 -,,
should
.
the
or
income
custodian :and
California
r
of
•
donee.
regis¬
the; contracts
taxable
the property in question is
includable in the gross In¬
support
Vermont
;7",.'C Wyoming77777^J. *27.
unless
person
minor is, to the extent
a
so
come
777; 'Utah ,7:7777.. 77
Virginia ' ;
/
.7 West Virginia
pany from selling or offering for ■7V
77,'*■ Wisconsin
/
missed
year
Securities
Louisiana,
;
V /"-\>7 "
any
used,
from
"7
Tennessee
Texas
or
of
or
To the extent that income derived
'
Columbia
Securities Acts'
State
the
so
Dakota
restraining V.A.L.I.C. and the Eq¬ 7'
uity Annuity Life Insurance Com¬
tered
in
tion
<
satisfaction, in
jn part, of a legal obli^a- •
maintain
■■
South
discharge
.
whole
•
■.Oklahoma ;;7 V; /;■
V
:
Pennsylvania 7
7;-
America (V.A.L.I.C.)> In this case
the SEC asked for an injunction
District
atten¬
fundamental
of
the. work
leg- *
to
;Matters
;;
particularly
direct
the
tive states cooperate in every way
ganization and
operation of
mittees.
attended
IBA
Meeting of the N.A.S.A. We urge
that all members in their respec¬
years
the or¬
islation
Counsel of
Annual
the Assistant General
the
sequent
effective
this Committee and
of
Chairman
guide in sub¬
for
This
plaintiff) against the Variable An¬
the President of the IBA, the nuity Life Insurance Company of
the
Hampshire
North Dakota
Securities. Administrators.
■
from; property transferred
the Act which is used .'in
under
X-YfV: 77
New Mexico
*
7
held; that, regardless of the
relationship of the donor or of the
custodian to-the donee, income de¬
v
;/
";
f;(b) The Internal Revenue Serv¬
ice has
rived
IBA
The Committee has prepared ahas through the yeare maintained
statement of Recommended, Pfor '
a close working relationship with
cedure for
that this state¬
7
■■
Recognizing "that, fact,
ment will pro¬
vide a simple
the time of the transfer and
qualified for the annual gift tax
exclusion of $3,000 ($6,000 for a
carried
couple) 7 and it appears
"that the same ruling would apply
under the Uniform Act.
;.7
Appendix A.
It
is
hoped
-
lists and summarizes amendments to states' "blue-sky"
of" securities':sales;
Topeka, Kan.,:Stresses the. close;
working relationship established
with state security, commissioners
and their national:: organization,
and close attention paid to: vari¬
able annuities events. * *;\77
•;
*■'-
at
organizing
.
Beecroft, of Beecroft, Cole & Co.,
Text of the Report
on
operating state legislative committees concerned with better
and
Harry
Committee,
Legislative
recommended checklist
State
the
of
Chairman Beecroft's report presents a
the
reviewing
report
activities
various
ment
,
other
the
than
someone
donor, preferably
who is under
no
duty to
support the donee.
'
/
V
J
IV
Legal Investment Laws
Amendments this year to
the
Legal Investment Laws of Con¬
necticut, New York and Rhode
Island
are
summarized in Appen-
dtxC.
■
.
.
•
Security Transfers by Fiduciaries
7 There is
available
now
a
Continued
on
page
-
Applications by "variable an¬
nuity" companies for authorization
to sell their contracts in Virginia
were
originally scheduled for a
hearing before the Virginia Cor¬
porate Commission on April 22,
but those hearings were postponed
indefinitely and it is our under¬
standing that the applications were
subsequently withdrawn.
f
White, Weld & Co.
In West
on
20 BROAD STREET
NEW YORK
Virginia
a
Com¬
"variable
V.A.L.I.C.
thorized
annuity" contracts
(which has been
by the
Insurance
by
au¬
Com¬
until
the
contracts
registered
are
CHICAGO
and
as
PHILADELPHIA
Exchange
ginia Securities Act and until the
securities under the West Vir¬
Company is registered
LOS ANGELES
under
Stock
that
Act.
as a
This
'
■'**
was
*
re-
;
pending at the time that this
port
'
MINNEAPOLIS
was
Investment Securities
i
dealer
case
SAN FRANCISCO
NEW HAVEN
Commodity Exchanges
,
missioner of West Virginia to sell
its contracts in
West
Virginia)
BOSTON
and other principal
Established 1850
missioner of West Virginia in the
Circuit Court of Kanawha County
seeks
to
enjoin the sale of
5, N. Y.
Members New York Stock
Hallgarten & Co.
petition filed V
behalf of the Securities
prepared.
V
in
IIAGERSTOWN
Gifts to Minors
The
WINCHESTER
Uniform Gifts to Minors Act
been adopted (with some
in
the following 33 states:
has
now
modification in certain states)
New York
Alabama
Arizona
44 Wall Street
Arkansas
Connecticut
5
«
Florida
?
l
■
Indiana
:
Delaware
LONDON
•
ZURICH
•
CARACAS
'
'
*
'
!
•;
Idaho
FOREIGN OFFICES
"
Kansas
■
■
Chicago
Scranton
231 S. La Salle Street
First National Bank Building
.
.
..
.
|
.
Geneva
Brussels
Kentucky
Louisiana
'
■+
.
f
'
66 Boulevard de
I'lraperatrice
Maryland
Massachusetts
Minnesota
Mississippi
Missouri
Montana
Nebraska
Uni¬
form Act for simplification of fi-
London
Austin Frinrs. £. C. 2
8
rue
Petitot
W
Volume. 188.
Number 5804
..
.
The Commercial and Financial Chronicle
;; :N umerous. examples, some funny
and. others not humorous at all,
are
contained in
paramount
legislation
group
Voicing hope that there will be bipartisan agreement
Congress meets in January, IBA Committee of
the
need for tax reform
turned over to IBA
whole
as.a
Chairman
report
a
on
reduce the
to
by Committee
;
Walter
Maynard, of
Shearson, Hammill & Co., New
York
k
City.
City
m
-
capital gains levy; tax
compensate for infla¬
:
- ^ ■h-';y''Z:Ys.YS.,
However, real texes on illusory {
gains are only a minor part of the :
capital gains tax problm. The real:
harm, in the capital
gains taxtion. ;•
crucial need
dividends; personal income
on
and to permit averaging of incomes
,*
upward to
reform when'
on some tax
tax experts stress
•
,
tax rates;
"reasonable"period.
over a
arises
from the fact that it is in
reality
In
submitting four
tax relief proposals, the Commit-
to
give an attentive ear to real- capital gains tax treatment on
istic proposals
for tax reform.-sales of livestock used for breedtee observes that this action should' Hearings on some aspects of tax
ing purposes. Other animal breedresult in greatly increased revreform, and oil the related sub- ers have now been successful in
permit averaging of incomes over
a
reasonable period — say five
a
.transfer
tax
the taxpayer need only
pay when he voluntarily chooses
to
years.
merely
which
make
sale
a
which he has
of
property. in
gain. Because of
jects of "loophole closing". and obtaining the same treatment, and ful start was made in reducing the the high, rate and self-assessment
kets.
•
relief from, hardships, will begin at the last session of
Congress impact
0f
double taxation
on
feature of the capital gains tax, it
Text the Revort
of
?
,hcihw,yrauneven mink breeders obtained this stockholders through the inaugu- seems logicaV^to believ* that the
since thecapi- aJ
m
i exu or me tiepon johqws. ■swollof
tal gams tax is on the agenda^ tax shelter
it was, however, ration of the 4% tax credit oil existence of the tax has been an
A year ago at this time a reces- will
give us a renewed opportu- denied to breeders of mice! Simi- dividends Further nroeress should important contributor in creating
sion in our economy was clearly nity to present our views. Look-: larly, -owners of wood lots and
fcetnade along these lines to 20%
the conditions which have led to
present; and many observers of ing further ahead, it seems pos- r forests now enjoy v capital gains
which
is
the
rate
of
dividend recent volatile security markets,
Double Taxation* In 1954
stabilized security mar-
enues and
use-
a
a
•
,
—
the tax
scene
were
hopeful that
sible
:
tration^Sjreae-^j
♦v*/■*:.
ti ojnvto
;
that
e c
^thls-;:
o' n'ot m i c
h all
en
>
g e
:
of the
new
•,
1 tax reform—tax relief and
a
..
mini-
■
inflationary pressures
only be hoped for if there
-^-can
groups.
As,
Practical etiects ot present tax
-
bfelv e nt J
tlvi ^h^e d out,4":
C o n;g:r e's s
'j£
ado]>ted fhe^>
p o
-■*
I lticiah's '
method
-
Walter
of
Maynard
•The
General Considerations
-
_
of 50%.
securities, industry has al-
the
the problem,
tures
recognize that this tax is, in effect,,
effect,
a
variable rate transfer tax on
tax
all
iand raised expend!-
substantially while leaving
unchanged. The result
of this action, combined with the
declining productivity of our progressive tax system resulted in a
rates
FheS present
The
fiscal
elections
have
f
However,
J,.:f
basic
a
m gree° of^^ef^from
yeai'.
we
forms of property.
This is
especially true in an inflationary
economy.
; substantial
increase in
strength of the E)emocratic
to
man
vof
Means
220
have
members
been
the
Committee
Representative
Arkansas, who
in
the
field
within the
limits
of what
can
tax
to
devote
avoidance
Gains Tax: The forego-'
we
are
believe that the maximum effec«ve
rate^of the capital gairur tax
Should: be • reduced
to
12
The events through a decrease in the inclu-
the capita! gains tax.
0f the past
than
year
the
ever
in
this
BU1CS
sures
?
area.
have
lutve
dV
areaTn
emphasize
more
of reform
urgency
Inflationary
intensified
mtcIlsuieu
/
J u,
«
su
so
preslIiai
that
a
1
nas
reduction
-in '•the
personal
WOuld
cost
or
mavimnm
income
tax
rat^
to
50%
only- $700 million
approximately
fiftieth of the amount
now
per
one-
being
t!
uu
aS^
it (a) Eowct EffecUve Kates^We
interested—-
most
-
0f
Proposals for Relict
/
the
tn
p»™w addifinnni
t'0~emning 'JdStional* inmmA a Infnc^vUhahnHv^fn
hKome".'*"A gains tax liability has accrued in
income in
a
period
than
even
of
years
another
game
total
amounts
installments
man
income
over
the
less
pays
who
in
over
sion from 50% to 25%. This would
have the effect of spreading the
benefits of the lower rate to taxPayers
-
j
in all brackets.
(b) Loss Provisions law allows
Should Be
Liberalized;
Present
wbich have had an illusory
-
-------
—
tax
same
Continued
CaP"al aSSetS Sh°Uld be ad^Sted
on
page
iff:
Jif
fH
Brokers in
the
period.
fool rather complacent about the
present situation and therefore to
Stocks and Bonds
§||
The events of the past two years
be
again
po-
be expected
that
ers
a
number of
given
were
years ago
the
farm-
privilege
of
emphasize the importance |t|
averaging
in
our
industry, j|J
which has been subject to such' w;
tremendous swings in its profit- K
ability. We should urge strongly, M
that the income tax laws should Hi
of
Underwriters and Distributors
of
Corporate and Municipal
Securities
If'
1
j
It-
.t:
['
't\
Members New York Stock Exchange
7S
9^3/~/s, JfC 3/.
Telephone WHitehall 3-7600
..
t
Corporate Teletype; NY 1-865 • Municipal Teletype: NY 1-1691
■
i
We have direct wires to the
Albany
•
HOUSING AUTHORITY
STATE
•
•
MUNICIPAL
PUBLIC REVENUE BONDS
RAILROAD, PUBLIC UTILITY &
EQUIPMENT TRUST CERTIFICATES
INDUSTRIAL BONDS
INVESTMENT STOCKS
•
Detroit
Greenwood
Grand Rapids
Indianapolis
Laurel
Kansas City
Minneapolis
Members Neiv York Stock
1 *
Pressprich & Co.
48 Wall
Albany
Boston
Exchange
Street, New York 5, N. Y.
Philadelphia
San Francisco
Denver
Farmington, N. M.
Portland, Ore.
St. Louis
Philadelphia
Spartanburg
Victoria, Tex.
Houston
Jackson
Muskogee
Phoenix
Joplin
Malone
Nashville
Pittsburgh
Potsdam Rock Island Rome,N.Y.
St. Paul
San Francisco
Harrisburo
Los Angeles
Montgomery
New Orleans
R. W.
Durham
Fayetteville, Are. Fayettevdlle, N. C. Fullerton
Huntington
Knowledge, Experience, Facilities for Investors
Chicago
Dallas
Cleveland
Des Moines
Baltimore *
Burlington
Boston
Cincinnati
following cities:
Ashevillb
Albuquerque
Beverly Hills
GOVERNMENT
-
onjy $i}000 per year of capital
Pr*ce boost through the workings losses to be deducted from ordiof inflation. At the-very least it nary income. (We believe that ;the
would seem that the cost basis of fact that many more taxpayers
M
irregular ml
earns
and;
is
which
than
that averaging of incomes should
be permitted.
Arithmetically, a
man
earning a given amount of
Wilbur'Mills of resist change.
is a true scholar
To give an idea of the pressures
of
taxation, and,-, that exist, it may be remembered
litically nobble,
taxpayer
a
to
ordinary income tax, which exerts
with
aeain
in
We should also continue to urge
the
of
Ways
will
for
effort
gains tax is the punitive rate of
con-
elected
House
his
in
capital gams income. In fact, certain influential groups have alAFL-CIO endorsement.
Senator ready succeeded in making this
Byrd still heads the Senate Fi- conversion on a large scale, ana
nance Committee and the Chair--it
is natural for. these groups to
and
while
taxation
-
fhe ct^ PerS°"al inC°m6
tremendous pressure on taxpayers
tingent in Congress, and 54 Sen£i- to convert ordinary income into
tors
u
the
resulted
a
House
when rates- exceed
is
i*
year
obstacle
It
50% that it becomes niore worth-
in
dealing with
capital gains tax because
the maximum rate
:
£
elim-
of
^dbcUonthetax
punitive rates ofmeome tax.
The lo.gicai objective .would be a '
_
been primarily interested
ways
for
press
ln
:
/
Some
cul®;ma.r.y4'
which:
and
effect
reforms would permit rational
continue-to
^nrrmarize, our ^lews m the toi
C
.
factg in
t-h
,
.
double
em?C?I-t Capital
,Tf*es: .
these s
mind, we should therefore W
■■
the
Here are our proposals for relowest
personal
income
tax lief, which, incidentally, we be—
bracket.
Incidentally
even
the Iteve would have the effect of
nrcscnt
present small m^asnw nf relief: greatly increasing revenues from
small measure of rpiipf greatly increasing revenues from
is apt to come under heavy fire' the tax, while at the same time
fr0m left-wing groups in the new tending to stabilize security marCongress.
'
kets:: .': * ^
*
-
.
Canada
have
mating
entirely different from the problemS of these already tax-sheltered
I mization of
reducing pu- Z)
nitiye'rates of lit
taxation.
would
.
would be the U
lpgieal one of
in
credit
; a
c
ft*'
in
the second session tax treatment, and beneficiaries of
Congress there may be corporate
pension funds
under
degree of bi-partisan agreement some circumstances also are faOn
certain: aspecis:\ of tax relief
yored. Xherefore, one of our. tasks
with an eye on the I960 elections.: is to make it clear that the probSince the logical objectives of > lems of owners of
property are
the .AdminisAdminis
Salt Lake City
Santa Ana
Syracuse
Toronto
Washington
San Antonio
Santa Fb
Tulsa
Whtttier
Seattle
Utica
Wichita
70
The Commercial and Financial Chronicle
(am 1
fit
...
Thursday, December 18,1958
Report of IBA InvestmentCompanies Committee
•
Chairman
The
the
of
IBA
In-'
Investment bankers
Committee,Charles F. Eaton, Jr., of Eaton &
Howard, Inc., Boston, informs his
banking colleagues of the princi-!
and other
finds
pal trends in the investment com¬
pany
field duringV1958, a year
which experienced a slightly in-:
of
rate
creased
shares
pany
brought
are
up
investment
purchased
'
vestors. "•
unjustified Illinois restrictions on interlocking directories with respect to
A (1 )?The Fulbright Bill (S>1168);*, ?
Tti-vi d .Krll ■ V*Vicv« il *I I* A* fiht1
'» a
,
j
variable annuities, and describes
on
'-not..'enacted.
supplements IBA State Legislative
.
comments
s
Your committee has closely fol¬
lowed other bills which pended ;
before the 85th Congress but were
developments affecting investment companies. The IBA Committee
investment fund management,
tee
Other Federal Legislation
Federal and state,
to date on significant
Companies
vestment
increasing
public mforma
*•
.
com¬
tion and
in¬
by
education activities
..
:
Text of the Report follows:
:
The
open-end investment
in
j]; I
force
that the
and
shares held
company
com¬
A - brtef x.^ One of the Subchapter M amepd-;; shareholders and the^SE^i Jayestdevelqpmdhtsv Ihehtais
companies; :alread^furn^ b;
investment-state and federal levels.
under these
summary
of
those
?
suchinformation.: and tttret hill
industry will have estimated' plans have a value in excess of'which a**" ^
: follows
assets of $13.0 billion by the end" $1.3 billion.
Growth is evident in another
-Rule
of this year;
This figure repreDuring the year, some 18 published « *,xVJt,™x
^
v
'■'sents holdings' way.
new funds were founded.
(N-22D-1) be adopted under;Sec---- shares- -immediately; 'before tt\ie.cBusMegr:Fee»
12S20W-TMB.t
of only 3.5%:
During 1958 additions :to. arid tion 22(d) of the Investment Com-; declaration of a capital gain divi- ;bill would have required brokerof
the avail¬
able supply of adjustments in investment com-. pany Act. Section 22(d) requires > dend and the sale of the shares - dealers to pay a registration feebecause of the that open-end: investment > com- immediately afterward. This neat to the SEC - for the privilege, of
listed securi¬ pany portfolios,
sale of new shares and changing pany shares be sold, at a public little'device made it possible for = doing business, measured by.: the/
ties.
The
in-.'
investment
conditions, were ef- offering price 'described in the a person to change ordinary in-; aggregate dollar amount of secuvestment'
fected by portfolio purchases of: prospectus. .The proposed'rule come into long-term capital gain.vrities sold. It was passed by thev
company inin-The third amendment is intended Senate without hearing in 1957^
d u st r y has $2.7 billion and sales from port.-'would codify administrative
folios of $1,8 billion. The bulk of terpretations of and exemptions! tp restore a provision, previously but no action was taken on it
grown
im-v
these transactions took place on: from Section 22(d).:
.^; in/the law but inadvertently or on an identical Bill (HR 7778).V
p re s si vely
the organized security exchanges
, Among
other things, the .rule omitted in the 1954 revision of the by the House before Congress ad-;
over
the past
or in over-the-counter markets/
would prevent various people; Internal Revenue Code which pro- journed.
:.
*
:•'> f
j'
decade, and itThese-notations on the trends from
combining purchases of, hibits regulated investment comt (3) (S 1602). This bill would'
continues to
in the investment company field; shares in order to obtain quantity - panies
from." offsetting realized have amended the Securities Ex-?'
"
attract the in¬
are, I know, important to you. As discounts.
.
^ i
: capital losses against ordinary inchange Act of 1934 to require
terest of indi¬
I have pointed out in the past;
The SEC held hearings on the j come
in .. order tov make nop- v the disclosure of the /beneficial 17 :
viduals and
most
IBA members-have
more
proposed rule in July, and its! taxable-distributions to their - owner" of proxies given or exerChas. F. Eaton, Jr.
institutions' in
than passing interest in invest-: adoption is expected shortly, v
shareholders. This restores to the cised in contested elections with Jk
equity investment as part of their ment companies and the services
Rule N-10F-3' On July 15, 1958 Federalilnternal Revenue Code a respect to securities listed on 'a
financial plans. This growth has,
they provide Many members en- the SEC proposed a new rule un- provision . previously, in -the .-law; nationalexcharig^V
■ *>*<?>
however, been in some measure gage in the retail distribution of
der Section 10(f) of the Invest- Jut-.unintentionally omitted from
,(4) Pre-Merger Bills (S 198, S i '
geared to the growth of our na¬ shares of investment companies to ment
Company Act.
This .rule the 1954 Code..,-^
: \
722, HR 7698)..These.bills would./ ::
tional economy. Certaihly invest¬ the
public. Other IBA members (N-10F-3) would establish defi- j cTransfer *; and Issue
Tax: An require corporations'to give prior
ment
companies hold in ; their
portfolios, even today, only a rela¬
tively small share of the invest¬
acquisition
ment
securities
issued
by
our
supervision
01
investment
com- vestment companies from purchaser changes the basis for computing assets of other corporations. Thev /
rtation's industries.
pany portfolios.
.x._
^
. _x.
• ,x*.^x
*...
x
x_._.
.
.
. .
.
.
. xiv
pany
r(
.
.
.
.
t.
.
.
,
,
--x-,.
A
ber
recent estimate
of
investors
of the
in
num¬
The
United
the
1.7 million, is
a
„—ti
—
—-
Investment
year,
has, during
continued to maintain
uliJlllv/a
a
close
holder of
the shares of mutual funds.
x—
Committee
States indicates that one investor
in six,
v-,
Dur¬
ing 1958 investors purchased in¬
vestment
issii-
participate in the underwrite; able in connection with the
ing. presently all exemptions from £
' '
Section 10(f) must be obtained by, c
! exemptive order.
;;
Comments which were submit-/1
pany
722)
lf)% ; (S
v
w
'
^
^
^
198h; of
(S
^
'
15%
or
r
-
.
company
shares at a
slightly above that of 1957:
; ted by members of the investment;
At hearings on this bill held by;
The - Investment:;Gompany''Act 0;
An estimated $1.5 billion of hew
Association of Securities. Dealers,
company industry are b<ang :stud- ^;tlm>Senate Finance;[Cqmmittee in; authorizes the> SEC ^ttovcmtductia p
fund shares will have been pur¬
The following summary sketches ied
by the SEC.
'v/vc
Jtily^'ain industry representative study of the; size o£ investment:
chased this year.
There will be the
developments in the investan
increase of 500,000 accounts
during the year. A particularly
important part of this figure is the
rate
...
number of
new
accumulation
moderate amounts of money on
or
quarterly basis.
estimated that there
of
are
in
s
.
_
plans
In 1958
a
It is
ui«c
iictvc
uccxi
iixcjiij-
reguiatea
investment
California
companies
significant regulatory and legisla-; with substantially all of their astive
excess
860,000 accumulation plans
in
convention
annual
Federal
opened, 230,000, for investment of
monthly
.
developments in the securi-
ties tax and related fields on hnth
ties, tax ana related fields on both
now
forts will be made in 1959 to have
se^s invested in state and local
g°verilnient obligations would be
permitted
to
:
"pass
on
these
bonds
in
its
Arthur
Levitt,
of the State of New
UNDERWRITERS, BROKERS
and DEALERS
as
tional
of
York, Wesley
spokesman
Association
Companies, and S.
on a
Corporate and municipal securities
1886
Capital Issues
for
of
the
and Dealers in the Securities of
Na¬
Investment
L.
INDUSTRIAL CORPORATIONS
.
.
•
Keystone. Hearings
since
Underwriters and Distributors
Comptroller
Majority Leader of ; the
Jersey Senate, Edward B.
Burr,
distributing
page
re¬
Lance,
New
on
ex¬
empt status. Amongst those testi¬
fying in support of these bills
were
Continued
through"-to
their shareholders the interest
ceived
has gotten underway in earnest,
jaw changed.
Sholley of-
were
PUBLIC UTILITIES
also held
RAILROADS
•
BANKS
.
broader bill
(HR 8702) which
would extend the conduit princi¬
pal to other investing companies,
including personal holding com¬
panies.
The Ways and Means
INSURANCE COMPANIES
STATES
the
text
of
MUNICIPALITIES
AUTHORITIES
•
"
THE CANADIAN GOVERNMENT
Commit¬
PROVINCES
tee did not act upon the bills, but
the Senate Finance Committee at¬
tached
•
MUTUAL FUNDS
•
MUNICIPALITIES
•
FOREIGN GOVERNMENTS
the municipal
bond fund legislation to HR 8381,
an
W. E. HUTTON & CO.
important tax bill which had
been passed by the House. HR 8381
as
amended was passed by the
Our Facilities
,
INSTITUTIONS
Senate, but in the conference be¬
Members New York Stock
and other
tween the House and Senate rep¬
resentatives the municipal/bond
Exchange
leading exchanges
PENSION FUNDS
are
Available
BANKS
•
•
to
CORPORATIONS
INDIVIDUALS
•
fund legislation was deleted from
the bill before its enactment.
NEW YORK
Boston
Dayton, O.
•
•
CINCINNATI
Philadelphia
Columbus, O.
Hartford, Conn.
•
•
Baltimore
Lexington, Ky.
Portland, Me.
Biddeford, Me.
•
•
•
•
East on, Pa.
Lewiston,Me.
Burlington, Vt.
Unintended Benefits and Hard¬
ships Bill: In September the Pres-*
ident Signed HR 8381, the "Tech-!
nical Changes Act of 1958." This
measure, frequently referred to as
Harriman
Internal
Revenue
Code,
63 Wall
regulated
investment
BOSTON
•
CLEVELAND
Street, New York 5, N. Y.
PHILADELPHIA
-
'
DETROIT
•
•
CHICAGO
READING
which
contains the provisions applicable
to
Ripley & Co.
Incorporated
the "unintended benefits and hard¬
ships" bill, contains three amend- *
ments of Subchapter M
of the
compa¬
nies and their shareholders.
London
.
DEALERS !
Correspondent: PHILIP HILL, HIGGINSON * CO., LIMITED
64
Volume 188
Number 5804
.
.
.
The Commercial and Financial Chronicle
Report of IBA Aviation Securities Committee
r
Experts in aviation financing
ernment
in certain
aviation
industry.
FOREWORD*
recommends
*■"
Virtually every member
of the Investment Bankers
Association has either
'
un¬
and
-
or
has clients who
are
resources
:
;
*
•
"
stockholders
in' the
Aviation?/ Securities
mittee
has
the
as..
The
measure
and
tion
the
Crucial
;
,
.
.
a
unique^
^
,
;
,
avia¬
.
>
MMMMg
industry.
Because
system
*.•
*
'
•
y-
<
'
.
'
T '
'
t h is
the internal
industry.
to
capital,
we
-..v
i"
-
^ T
markets
what
total
to
win
mobilization
of
,
The promotion of adequate, eco¬
nomical, and efficient service
I
supe-
v
f-
-
'*
\
,
i
,
'
r-
;
commensurate
n
the
industry partner—to compete
companies in a freeand
.
i,-_i
_
with
The
its
all
of
against the
the; entire
;
■
Transport
;
•>
Industry
its
.
The
Development Theory of
Regulation i
The
Civil
Aeronautics
Act,
air-transportation
;;.
:
manner as
development
are
'
,
-
commerce
to best
"
z
promote
'
:
y
,
*
The
°£
develop-
mental emphasis of the
*
and
1938 Act
and
constructive
of
its
stricted
and
Congressional, authors
the
airlines fn the pa
ieoDardize their growth
now
f?>utme
y
^
'
.
■',)j
...
™ view of this continued dte-
ndat on
°
as
^
a
«fa^S.FeC#
of
matter
°
greatest
^
urgency:. Namely,
that
the President of the United States
appoint
at
individual
once
tA
to
outstanding
an
walr_
make
0
complete
a
"S.''!
warning signs lowable;. passenger
fares
and,
that
the
necessary
relationship hence, earnings.
Granted these
has not been achieved. Recurrent. powers, the CAB has been in a
Soviet aviation firsts
in earth position from the beginning to
—
-
(Emphasis added.)
;
devel¬
an
The regulation of air
And the CAB
./}
extent nec¬
/
.
.
.
com¬
\\
Competition to the
opment
dustry success is a -partnership; nomm development oi-me nanusstatus whereby government regu- try.; The semi-independept fivelation allows the industry the man regulatory Civil Aeronautics
earning power, stability, growth Board was granted broad. legislapotential, and incentives to attract tive> executive, and judicial
the necessary capital,
management, Powers to achieve the intent of
and resources in our highly com- the Act, The CAB alone could
petitive free economy. Successive grant entry into the industry,
earnings declines in both segments' could certify routes, allow merof the industry, chronic overreg- gers, regulate subsidy and. mail
ulation,
mounting .and
capital- rates and determine maximum al-
shortages
V
in such
Air
destructive
essary to assure the sound
nation,
our
or
petitive practices U.. ■'
system
private
as
;
strategic priority to
But it is im-I
remember
.f
'
,
-
\
.
,
econom-
government is asking of its avia¬
economy
v
•
v'V.
.
foster sound economic conditions
in such transportation
y
management,
lose aviation
commerce
.
The regulation of air
transpor¬
tation in such a manner as to
V.
without unfair
■
„
foreign and domestic
of the United States
stability,
power,
properly adapted to the
and future needs of the
present
complete
.
^
,
p
artnership'
appears
SSJ.
—
u n-
satellites/ in
intermediate range, determine the economic fate of
rocketry, to production of com-, the air transport industry.
v,
mercial jet and prop jet transports,.
The constructive intent of Conin inauguration
of international gress in thus empowering the CAB
equal, with
Timitetions ?s
,
g o vernment
u
p
nwittingly
e n a 1 i z ing
rather
■ IZTZy
that
are
than
we
t
imulating
rt h e industry,
s
'there is
a
It
real
that
system
scales
of
Donald N. McDonnell
»
history
and
found
few private aircraft
maintain
the-
Free
World's
strategic air and rocket
superiority over the combined re¬
COMMITTEE
of
sources
Communist
'
the
most
aggressor
a
problem
is. beyond dispute. One of the
original
Congressional
defined
as
-
^sponsors
the
beelnntair
a
dipection
review
he
?he
weieht
n0"nffress
?iven
urrf
We
iindert»ken
tatent
f>ana\
the purpose of the 1938
the
governments
proper
relationship
to
tn
and
thp
executive
wig
viewn
airencies.
pub^?
indS
...
insure
in part an investment bank1
problem.
relies problem
manu¬
this
to
losing
i
;
thi„
.
.
.
^
it is
ing
Our Defense Department
AVIATION SECURITIES
of
in
steD
Act: "To give assurance of seengeneral
the
rity of route
to protect against and financial leaders
concerned,
cutthroat competition
to give with the a|m of
presenting to the
survival — that our Report is ad4 financial stability to
these com- president and to Congress at an
dressed.
In humility we believe panies .so they can finance their
earlv date a concrete program for
industry
wanting.
to
is
problem of
m
a
y
-b e
weighed in
the
danger
in
the larger competition.,
danger
nor
;
upon
Government
upon a
'>
-
security and. well-being of
facturers
'
A
'
J
partnership between the American
nancial support.
Of
c
nation continues to depend in;
large1"
this vital industry to falter
for want of intelligent fi¬
.
:
And Industry ;
.
.
allow
we
\
:
'
Partnership of Government
Re¬
citizens
can
of;
ii-
over
ics of the
su¬
achieve
;1 ^Aviation:
American
our
bankers
air
series
a
to
t
-
*
Neither
priority
...
port to distribute copies to
as
our
outlines
>-v-
Washington. We
Association members
petition
their Representatives in
Congress.
r
jeopardizes
recommendations
known in
their clients and to
*"•
.
tion
CAB,
Committee
of the in¬
dustry's financial problems
are the result
of relations
with our Government, we
urge the financial dnd in¬
vestment
community at
large to make their views
our
►*,
-•
porta nt
our
with
*
-
_
National security and public welfare huist'of ^necessity receive
.
concur
fj
periority, the "Aviation Securities i
'Because many
urge
who
,*•
"
'
out
7-
by
in¬
dustry - is responsible for,
engineering a revolution irt
Afrt e rica n >. transportation
and for insuring the stra¬
tegic security of America.
Its financial strength is a
vital concern to every citi¬
zen of our nation. :
/
^
.
,
'
aviation
"
'
*
•
highly competitive economy—lest
riority to the Communist Bloc.
the
splendid 1938 Civil Aero-,
riautics Act and its administration
Com¬
V
'
>
to attract the necessary
earning declines
in aircraft
manufacturing and airline operation, capital shortages
and continued disparity between,
participated iri
''"..V
'
V
'■ /'
a
m
>
''1 *
Pointing
financing of the industry
and is qualified to speak
from professional ; experi¬
ence:^':.
v:
».
V
indus¬
Every member of the
try.
said to allow the industry the earning
program
growth potential, and incentives
derwritten aviation securi¬
ties
a
fellow investment bankers that the Gov¬
warn
is
unwittingly penalizing rather than stimulating the
The nine-man Committee of financial executives
earnestly
areas
•VsVf:
noirtic
of
Primarily,
recreating
soundness
#
•
of
a
it
is
the
eco-i
crucial
priority
in-i
)
■
dustry In order to reestablish
financial
a
in
our
its
capital
operations
finance_ ,them to
remedial action.
,
■1
■
\
advantage. ' The initial declaration of policy of the Act express- B. The Overrestrictive Practice
lv orders the CAB, among other
of Regulation
•:
i
Summarized below are but 'a
things, to consider the following:
"The encouragement and devel-
opment
of
an
few
areas
where CAB
Continued
air-transportation
regulatory
on
page
65
powerful
in history.
Our Civil Aeronautics Board reg¬
our
airlines as the major
'
ulates
INVESTMENT BANKERS
ASSOCIATION
OF
commercial
tercity
AMERICA
the
supplier of U. S. in¬
transportation,
principal source of our mili-»
transport fleet, and the
i
passenger
tary jet
sole
*Figures
in
this
Report
are
from
) published sources believed reliable and
representative of American
enterprise abroad in competition
'
ehecked
i
>
by
independent
not
guaranteed
Committee.
by
authority
the
IBA
or
but
OUR EIGHTIETH YEAR
with Soviet Aeroflot.
this
Rightly,
the
government
senior in this crucial
is
Servicing
partnership,
u
Brokers and Dealers
Since 1878
Underwriters and Distributors
Corporate
and
•"
Municipal Securities
♦
"
Specialists in
I.',.'.■
Rights and "When Issued'' Securities
ASIEL & CO.
Members New York Stock Exchange
ppNNELL &
Members
American
Stock
Exchange
Established 1905
20 BROAD STREET
Members
New York Stock
120
Broadway, New York 5, N. Y.
New York
—
NEW YORK 5, N. Y.
Exchange—American Stock Exchange
Detroit — Chicago
—
San Francisco
Telephone HAnover 2-5000
Teletype NY 1-1110 & NY 1-1111
i
32
The Commercial and Financial Chronicle
(2548)
..
Thursday, December 18,1958
.
Report of IBA Nuclear Industry Committee
showing detailed familiarity with nucleonic
operate at high load factors. Even
when atomic energy will become
developments, doufits fusion will be feasible for the next generation; refers
competitive, it will only be so at
high load factors in the early
years.
A number of years more
must
pass
before reactors can
compete with conventional pow^r
at low load factors or to. carry
Investment bankers committee,
Genachte, of Chase Man¬
New York City, as
Chairman of the Nuclear Industry
Paul F.
hattan Bank,
Committee, presents to- his bank¬
ing colleagues at their annual con¬
vention his Committee's expert
atomic
analysis of the atomic "energy de¬
velopments here and abroad. The
Chase Manhattan "banker's broad
and fine strokes of the present
per
energy
is still not
kilowatt still is twice coal and oil—though these will faU in the next decade,
"
vs.
was
world
nuclear
Fission
the
first half
the
or
fusion devices.
It may be said that, as a result of
this Conference, research in con¬
thermonuclear
trolled
or
fusion
September of 1958. Over 6,000 power will from now on be com¬
delegates and observers from 69 pletely devoid of secrecy. This in
itself is a remarkable achieve¬
countries - re¬
1955 Geneva
meetings are to be credited with
the large amount of declassifica¬
ment,
the
present uses
of nuclear
ergy
en¬
tion
and con¬
just
which
the
as
has
nuclear
of
occurred in
fission.
It
the
sidered how it
field
might be used
constantly
emphasized
at
this
year's Conference that a very long
road lies ahead to the accomplish¬
ment of a self-sustaining reaction
that is a net power producer, i.e.,
a
reaction that gives off more
power than is needed by the con¬
fruit¬
most
in
fully
future.
the
Scien¬
tific and com¬
mercial ex¬
hibits
were
featured
the
same
The
At
Geneva
is
br. Paul F. Genachta
likely to have
a profound effect
at
the
previous 1955 Confer¬
ence, Dr. Bhabha of India had
predicted that a method would be
found
on
liberate
to
the develop¬ energy
in
a
nuclear
controlled
fusion
fashion
within the next two decades.
ment of atomic energy.
The
was
tainment device.
at
time.
Conference
disenchantment
which
truly phenomenal feature though the
the scientific exhibit
the
was
year
papers
Al¬
that remarkable progress has been
made in this field on a very broad
front, it may take under the most
conservative estimates, at least 10
years
to reach the break-even
point in experimental devices and
it may take a period at least as
long to develop industrial scale
machinery. The time scale given
by others goes as high as 50 years.
Although temperatures of several
million degrees have been reached
in deuterium gas, the problem is
to reach temperatures of at least
100
million
degrees-centigrade.
The problem is also to hold these
high temperatures for a suffi¬
ciently long time for an appreci¬
able proportion of the deuterium
to be burned.
Thus, for a long
time to come, we are going to put
large amounts of energy into
these experiments without getting
any out.
It is perhaps also well
are
to
indicate that fusion
when harnessed
economic
only
plants which
presented this million
—
if and
to be
appears
—
in
large
very
exceed half
may
kilowatts.
Fusion
a
will
fusion research showed complement fission and will not
on
out
of
than
more
fission
business,
atomic
will
coal,
natural gas obsolete.
hope that atomic
not
energy
render
any
from
oil or
Let
us only
in the
sufficiently
time oil and
energy
form of fission will be
INDUSTRIAL, PUBLIC UTILITY;
r
RAILROAD
AND
MUNICIPAL
SECURITIES
developed by the
natural gas become scarce.
We can thus dismiss fusion for
the next
generation at least and
the practical attitude today is to
look at the problems of atomic
energy as
released in fission.
n
Atomic Energy—A New Source
Of
Energy
In
Laurence M. Marks & Co.
AMERICAN STOCK EXCHANGE
(ASSOCIATE)
STREET, NEW YORK 5, N. Y.
even
more
quite the
Geneva
same
at
as
the
between the un¬
derdeveloped
nations
and
the
technically advanced or in¬
dustrially
sophisticated" nations
,
difficult.
continue
will
Furthermore, insofar as the cost
are concerned, the energy
to
widen
produced in small atomic plants
would hardly be cheaper than the
most
expensive electric energy
produced by conventional means,
such as diesel
plants.
Next, a
rough rule of thumb indicates that;
the investment in industrial plants
to utilize the power produced in
TELETYPE N. Y. I-344
If, in relative terms, some na¬
tions
thus appear -to have lost
further ground in their efforts to-
wards- industrialization,
,
per
was
ton; yet, no such experience
reported at Geneva, although
now
we
have 17 reactor-years of
"
Continued
would in most instances not
on
page 68
of
The situation may best
by saying that the
honeymoon period of atomic en¬
ergy is over; the glamour is gone.
However, a much more whole¬
some
and interesting life is to
follow and what will be built now
will endure.
No Panacea for Economic Ills
Underwriters
—
Distributors
Dealers
PUBLIC UTILITY, RAILROAD
INDUSTRIAL and MUNICIPAL
SECURITIES
The
excitement
of
1955
was
brought about mainly by the un¬
derdeveloped nations of the world
in
anticipating that impending
atomic energy developments would
soon close the gap between their
standard of living and ours and
would provide a short-cut to in¬
dustrialization.
They regarded
atomic energy as a panacea that
would remedy all economic ills;
These nations today realize atomic
power will not perform miracles
and
that
even
to
build
reactors
of limited
W. C.
Langley & Co.
Members New York Stock
115
Broadway
Tel.
Boston
Exchange
New York 6, N. Y.
BArclay 7-8800
Syracuse
capacity, say up to 20,000 kilowatts, would in itself solve
nothing.
First of all, reactors being more
complicated machines than con¬
ventional power plants, the in¬
vestment per kilowat is consid- *
erably higher in nuclear plants
than in conventional plants. This
C. J. DEVINE ft CO.
48 W«N SfrMt, New Ytrfc 5
CMeojo
•
more
acute
in the
case
of small
„
Boston
QmM
investment problem becomes even
nuclear power stations. Thus, the
never¬
theless, the; atomic energy field,
a
conventional or nuclear power in absolute terms, has made re¬
station is 10 to 20 times that in markable progress in the world
generating equipment. It is there¬ since 1955 and particularly in this
since
1954
when
the
fore not sufficient to build a nu¬ country
clear power station without at the Atomic Energy Act was passed,
same time building up industries permitting
private industry to
that can utilize the power.
And enter this new field.
The United States, Soviet Rus¬
finally—last but not least—there is
the consideration of the load fac¬ sia, the United Kingdom, Canada,
tor.
Let us explain. The cost of France, Germany and a few oilier
have made
enormous
the electric kilowatthour is made nations,
strides, with our country still
up of two parts:
/
t
'
holding the lead with: the most
(1) The fixed charges on the
diversified program/The truly big
investment per kilowatt of power.
disappointment of the Confer¬
Since there are 8,760 hours in a
ence, however, was that although
year, 1 kilowatt of power at 100%
much more experience has been
load factor will deliver 8,760 kilogained in reactor technology since
watthours of energy. At 50% load
Geneva 1955, nuclear power eco¬
factor, the kilowatt will only de¬
nomics are still such that nuclear
liver 4,380 kilowatthours.
It is
power plant costs are hardly more
evident that the load should be
reliable and predictable than in
such as to obtain a load factor as
1955.
The United Kingdom has
close as possible to 100% so as
been using metallic fuel expected
to avoid the burden of the con¬
to achieve a burn-up pi; at least
stant, never-ceasing costs of in¬
3,000 megawatt-days per ton, so
terest and depreciation on an un¬
that one ton of uranium will do
used plant; or, in more technical
the work of 10,000 tons of coal
terms, so as not to incur unduly
before
reprocessing is
needed.
high fixed charges for interest
Yet, the maximum achieved has
and
depreciation per kilowatt- been
only about 1,300 megawatthour produced.
days per ton of uranium. Reactors
(2) The second element of cost using uranium oxide fuel Such as
is the nuclear fuel per kilowattproduced in this country, expect
hour, just as there is a fuel charge burn-ups of 10,000 megawatt-days
1955, although the attendance was
greater and more papers were
delivered.
a
Remarkable Progress Nevertheless
be summarized
TELEPHONE HANOVER 2-9500
for
couple of decades before it begins
to get narrower.
\
'
factors
enthusiasm in power
Conference
en¬
V not
more
reviewing the progress made
for coal, oil or natural gas.
to date, our best guide is to ana¬
In some of the underdeveloped
lyze the results as they came out
of the 1958 Geneva Conference.
nations, reactors installed in re¬
mote areas as the only, source of
It would appear that there was
not
MEMBERS NEW YORK STOCK EXCHANGE
made
nations
of•: some
realize that atomic
be the ready or
cure-all for their lack
of industrial development. Rather,
it is likely that in spite of atomic
ergy will
the quick
financing problems of these na¬
tions for nuclear power projects
put it
48 WALL
now
energy, the gap
controlled
of
viewed
reserves
erf power.
source
the center of
for
and predicts world
follows:
thermonuclear
Fusion
us;
'
;
United States display of
Geneva
the peak load inutility systems, i
These are the reasons for the
of high,
grade ore will be about 10 million tons of uranium. Doubts coa^oil or natural
gas will become obsolete and discusses other developing aspects of this new
perienced, successes obtained, and
reasonable, reassuring prospects
Text of the Report
for their economic ilU| notes capital cost"
a panacea
particularly for England compared to
and
future picture of nuclear energy
deals with the disenchantment ex¬
for tomorrow.
disillusioning awakening of underdeveloped countries to the fact that
to
"'"tan*
•
•
PModolpMo
Cincinnati
*
HAnovor 2-2727
•
WasMngMo
St. Louis
•
•
PMsborfli
Sao Francisco
Volume
188
Number 5804
.
The Commercial and Financial Chronicle
..
(2549)
In a report submitted to the
Investment Bankers Association's
-
A group
convention
annual
the flight into
Federal debt structure and budg¬
etary situation are singled out.
study notes that the cost of
carrying the public debt was rela¬
tively less today than it was in
1951 as a per cent of the budget
Nineteen
~
•
fifty-eight marks the
since we returned to
markets.
active
These
have
the
rent
year
no
ex-
cur¬
ception.
-year
A
Treasury's problem in financing and lengthening the struc¬
The report delivered to investment bankers
by
7 7
•
,
..
one-year
market
•
-up
strongly
starting
_
and
the mid-
•near
a
the
Any material improvement in the
structure of the debt probably re¬
quires a fundamental reappraisal
of
the importance y of a sound
Federal debt structure in relation
to
long-run. monetary policy ob¬
jectives.
*
.
.
,
.
'Monetary Objective
■
.
improved
business
sentiment
which
developed shortly after this
financing. As the tide turned, the
aging the short-term debt and not There
for
can
be
no
challenge
to
these objectives, but' the precise
crease in the size of the shorttechniques of fiscal and monetary
market for Government securities
term debt. Hopefully an increase policy are certainly a proper subable
debt
due
after
10
years2 declined abruptly. ;
in the amount of Treasury bills ject for review. Recent newspaper
amounted to $53.2 billion.
This
The Treasury has been criti- outstanding
handled at regular stories state that Congress again
amount declined to $43.7 billion
cized for
undertaking this financ- weekly auctions will enable the plans to investigate U. S. moneat the end of 1953; and in
moving
.was
stock and short issues, because of the fear of
inflation,
prevent the
debt from moving into
new high ground.
At the end of 1951, the market¬
the
ago
bond
real purpose on the part
Treasury to improve its
handling of the debt; but impor¬
tant though they are, they can be
helpful only in a technical sensed
of
.
has
been
strate
warning to the Treasury
longer-term fixed-income issues and
a
7.V'; 7. •
vv'% 7
p".
>7*77;77V■ 7 7 ■ The broad objectives of our naWlttl a marity beyond 2/&% issue and in other parts of an additional sum of money tion's monetary policy are to eni
the one-year debt is to be the bond market was larger than through weekly offerings of six- courage the sound long-term
?ei. .?n. check. In addition, any anyone had believed possible.
month Treasury bills in addition growth of our economy while at
deficit m the period would also
As
a
consequence, the
bond to the regular weekly cycled 91- the
same
time protecting the
have to be financed with matun- market was
exceedingly vulner- day bills. We regard this as an value of our dollar and the value
ties outside the
very short-term able to the change in Federal Reeffort on the part of the Treasury °* the savings of our people to
_requ\r?t_a ?erve credit policy and to the to improve its technique in man- the ^maximum extent possible!
well-planned effort to
,
been
in the bond market
years
and
to
on
Committee Chairman Robert B. Blyth calls for a
study of speculation in the
bond market and repurchase agreements and
points out budgetary cost of in¬
creased rates is nominal compared to toll of
inflation induced by easy money.
seventh year
free
common
to hold
of the Federal debt.
ture
{
Text of the Report follows:
y
hesitancy
which adds to the
The
and' GNP.
of ^Government f inance specialists sound
about the public's
by Robert B.
Blyth, of the National City Bank
of Cleveland, such problems as
83
as
a
means
facilitating
in-
an
-
dle
this
of
spite of
the efforts of the Treasury to sell
longer term issues, the ten-yearand-over debt will aggregate little
more than $40 billion at the end
have
experienced a
year, we
-
-sharp decline.
The freeing
of
the
bond
market
was
of
Robert B. Blyth
a
1958.
Furthermore, in the pe¬
since
1951, the volume of
riod
necessary step
the fight to protect the value
of the dollar. Furthermore, in the
tt
.
c
in
a'
i
r*
s?.vlI*fs.
ing,
and the
have
been
speculators
criticized
in
for
turn
their
activities in the market. In retrospect, it is clear that there was
not enough data available as to
the
size
ii°n
in
of
the
the
speculative
market.
posiHowever,
tary and fiscal policies. One point
other refunding operations which of issue is expected to be the cost
have presented the bond market °£ servicing the Federal debt,
with a series of recurring crises
Since 1951, the cost of servicin periods of credit restraint.
mg the debt has increased 32%
Treasury to reduce the size of its
,
In addition to announcing the whereas budgeted expenditures in
longer bill cycle, the Treasury this fiscal year are up 75%. The
also introduced another innova- cost of servicing our Federal debt
tion in the refunding just com- currently is about 9.6% of the
opinion of most thoughtful peopnuon.
. ,
time clearly lies at the door of pleted by offering securities at a budget'and 1.6% of Gross Naple, the actions of our monetary
The piling up of short-term a
wdl-advertised
recession-in- discount. This technique permits tional Product.;1 In 1951, the cost
authorities since that time have Treasury debt, and the loss of po- spired credit
policy that helped greater flexibility in pricing new of servicing the* debt was 13% of
exerted a wholesome impact on sition in the long-term bond mar- drive rates on
short-term Govern- issues and should prove useful in the budget and 1.7 % of Gross Naour
economy.
Nevertheless, the ket have serious implications in ment securities down to extremely future financing operations. Still tional Product It is clear that
freeing of the bond market has the fight to protect the value of i0w levels. This in effect en- another new financing technique the cost of servicing our debt has
created enormous problems for the our dollars. So, too, does the loss
couraged the use of bank credit was
used in October when
a
n°t increased as much as other
U. S. Treasury in its management of position with private investors, ^ to
purchase long-term securities. Treasury bill was offered at a parts of the budget and that the
of our Federal debt. Partly as a which is suggested by the decline it
encouraged short-term inves- fixed price basis.
burden on a relative basis has
consequence, and in spite of a real in savings bonds outstanding.
tors to invest in longer maturities
Regardless of the particular been declining both in relation to
effort on the part of this AdminAgainst this background the than they were prepared to hold merits of any of these actions,
+h
f t , P#>rfprnl
hll/Wf
f_
istration to improve the structure Governmental Securities Commit- and
encouraged the extended use we believe that the Treasury is
® a
of the debt and extend its matur- tee of the Investment Bankers AsGf repurchase agreements which wise
to explore every possible the Gross National Product.
,
lrom ?57.9 to about
some responsibility for the condition of
bond market at that
little progress has been; sociation has consistently urged
In some important respects the Treasury to issue longer teftn
had the effect of supplying additional speculative credit
to the
.
ity,
very
made.
Jl
A.
_
V V
■
.
#
_
_
■'
•
V
_
'
J..
ground actually has been lost.
4-
/\/«
securities at
'
i
every
+/\vtAimaI%1
*-v
/\v-»
favorable
op¬
portunity.
7
data
Recent
able debt due within
$55.7
was
Such
dropped
issue
back to $60.6
the end of 1955.
It
billion
now
at
stands in
$75 billion.
May 15, 1961 and other investors
took $1.2 billion of this issue. This
has prevented the one-year debt
moving into
the
tax
savings
—
availability of
are
matters that
need careful study.
notes
1935.
This
control
avenue for improvement in the
handling of the short-term debt.
A
,
_
•
1
^
More
•
11_
^
^.1 •
,
Furthermore, the increased cost
0f servicing the debt in
®
J.
_
^ improvement in the climate
op-
some
real
measure l3 ^ result of the fau_
,
,
,
..
erations even in the short-term ure of Congress to balance the
"area is necessary if We afe goiilg' budget in the intervening period
to
have
a
background against with a resulting increase in the
which other steps
recently the Treasury has
t°
announced that it intends to raise
•
surrounding debt management
Longer Bill Cycle
:
•
improve
These
the
various
public debt of nearly $20 billion
dollars. Many debt management
be taken
may
debt
structure,
measures
Continued
demon-
on
page
71
substantial
speculative
interest in the market, unable to
a
acquire the 3 *,4% bonds, turned
their
attention
operation
to
which
mated at about the
the
refunding
was
consum¬
same
time.
In
this operation investors and spec-
SPEED - DEPENDABILITY-NATION WIDE COVERAGE
The amount of speculation in this
1
a
in
approximately
high ground
$27.5 billion Of securities Will have
within
due
well placed by a careful
of subscriptions.
Appar¬
future, but in
immediate
due
.
The
ulators voluntarily took $7.4 bilH°n °f 2%% bonds due in 1965.
new
the next two years
IDebt
bonds
was
ently
In the refunding operation just
completed the Federal Reserve
System took $2.8 billion 3%% due
in
—.
as
Treasury sold for cash $1.1 billion
one-year
31.4%
from
-
chase agreements
appeared
year-end peak of $79.2
a
of
opportunity
i
to exist in June, 1958, when the
The
billion at the end of 1953 and then
excess
an
Speculation
debt
billion.
reached
year*
a
-m
to speculation in the bond
market and the subject of repur-
Short-Term Debt's Size
At the end of 1951 the market¬
-«
bond market.
year
including all
outstanding.
2Debt due after 10 years including the
nonmarketable
investment
series
"B"
bonds which are convertible into market¬
able
Private Wire# to:
Charlottesville
We Make Markets
Chicago
securities.
—Wyllie A Thornhill
Wm. H. Tegtmeyer A Co.
Cleveland_
Dallas_
in
J. N. Russell A Co., Inc.
Dallas Union Securities Company
Detroit
Grand
Over the Counter
Shelby Cullom Davis
Co.
&
Exchange
King and Company
Coburn A Middlebrook, Inc.
Houston--Underwood, Neuhaus A Co., Inc.
Los Angeles
Woolrych, Currier A Carisen
Securities
Louisville
Members New York Stock
Baker, Simonds A Co.
Rapids
Hartford
Berwyn T. Moore A Co., Inc.
Lynchburg
to
Mason A Lee, Inc.
Martinsville
-John W. Yeaman
Philadelphia
Banks, Brokers & Dealers
Underwriters and Dealers in
Pittsburgh
Portland (Ore.)
H. A. Riecke A Co., Inc.
Arthurs, Lestrange A Co.
Zilka, Smither A Co., Inc.
St. Louis
Inquiries Invited
INSURANCE STOCKS
Fusx-Schmelxle A Co.
San Francisco
Spartanburg
Walter C.
Gorey Co.
A. M. Law A Company, Inc.
CORPORATE & MUNICIPAL BONDS
Oldest
Stocks.
Specialists (with Predecessor Firm) in Insurance
Serving Dealers and Institutions
since
1927.
Troster, Singer & Co.
Members: New York
116 JOHN
STREET, NEW YORK 38, N. Y.
Telephone BEekman 3-0626
"IJV THE HEART OF
I
•
,
Teletype NY 1-384
THE INSURANCE DISTRICT"
74 TRINITY PLACE
Telephone HAnover 2-2400
Security Dealers Association
NEW YORK 6, N. Y.
Teletype NY 1-376; 377; 378
'
-
>■
.'--v
"1-rr*
—
34
The Commercial and Financial Chronicle
(2510)
..
Thursday, December 18,1958
.
Report of IB A Railroad Securities Committee
Included among the reasons
for
for, rails,
Chairman Alfred J. Ross, of Dick
& Merle-Smith, New York City^
.
the
reveals "There is much
transpired this
points out in the Railroad Securi-ties Committee report the considr
erable improvement in the laws
regulating the industry and the
additional requests that will be
made when Congress meets again
In
January.
Text of
'
;
report: (1)
time
in
Committee
a
ago
year
reporting
what has already
on
outlook both near-term and long-term."
looks forward to freedom of raik to make competitive,
In
this
Com
i t.t e
m
few
was
such
funds
to
for modernization
unable
level that most
even
stockholders
,on
railroad
plant and
equipment. V
'
' '**•,% v \
Exemption; from regulation of nu; merous
agricultural - com modi*
ties, including many, processed
poses
passenger
traffic.
;
or
.
manufactured, commodities in
various stages of transportation
far beyond the initial movement
;
from farm to
to
amount
sell
of
primary market of
obtain
im¬
and
Since most roads are
provements.
low
a
\
ciation allowances for tax'
pur¬
unavailable), is compelled to
penalize
tions, railroad
credit is at
may
passenger fares of railroads
"These ominous statistics call
to borrow needed funds on reafor attention. It is clear that -a'-, sonable. terms.H
(and in study must be quickly under- More effective authority for the
this money taken, and solutions proposed to ; -Interstate Commerce^GommiST
Management, having limited
access
to capital markets
no
certain instances
excep¬
Amongst these
following:
the
.
or
e
cited
other for-hire carriers only.V
Inadequate and unrealistic depre¬
car-
other than for equipment
"With
stated:
be
The Federal excise tax of 10%
and coordination;
Congress in January; and (4) recommends subsidization of
tion.
the
accommodate the mapy items that
not taken care of by the 1958
legislation.
(3) praises recent legislative gains and hsts further changes to be asked of
you
con¬
*
transportation and the
legislative 1 action
to
were
compensa¬
(2) discusses.the improving earning and
on mergers
of
necessary
The Committee
emphasized the deplorable credit
position of the railroad industry.
nection
modes
what is in the offing, wholly apart from the
as
loadings, economies, and study strides taken
your
to
well
he optimistic based
to
reason
tory, non-discriminatory rates;
-
<
year, as
excellent traffic
the Report follows:
this
At
j.
_
equality of treatment with other
Expert appraisal of the railroad industry, under the guidance of Alfred J. Ross,
future
brighter
appreciable
any
bonds, the
outstanding mortgage bonds are ership."
; ;
;
J's ' yy
' passengef^traftr service-opera
ence
or
inadequacy of .user
constantly being strengthened by * At the conclusion of ,'tfre/hear-' r) tiohS.^T;.
i ll iS; A; charges on railroad competitors
tVio nrirJitinnnl r\i.nnoi.tv itivoetmonf
ivirfn
A nril"
'i
10^P
SonofAt*
'n
Ju't
'
"v.
the additional property investment mgs
on
and better¬
1958, Senator Restriction on furtnen expansidp if to compensate Toi- their use of
placedxbehind them and paid for Smathers made certain pertinent... of'
ments to road¬
the; listco»mmpdipes ex^ '
publicly provided facilities.*W
out of.retained earnings.
observations, including; ;
empt from regulation and resto-" Denial to railroads of equal opway and struc¬
Rapidly declining railroad
"It seems apparent that; all ,-is
tures.
ration.'of,,some commoditiesXto;/ pprtunity to provide service by
Alfred J, Ross
traffic in the latter part of last
/ Generally
not well with the railroads.
Bui j
^riegula^n^^^
; other modes of transportation
year, followed by a contraction in
to restore health to the, railroads New rule of
speaking, w e
rate-making stating,
While < requiring them to pay
believed those charged with the earnings and weakened treasury will require more than .outside :/In
effect, that no.form.of trans- * : heavily.in taxes toward the supresponsibility, of safeguarding and position-caused such grave, fears ministrations or legislative actidri..
portation shalFibe requiredVto '
port of publicly provided faciliroads
cannot
mortgage
,
finance neces¬
sary additions
.
'
nn
.
•
-
'
r
'
..
.
'
.
.
•
prudently investing the vast sums
that are channeled each year into
in Congress of
an
imminent fi-
nancial. collapse in
the railroad
The
a
patient must also demonstrate
will to health and an
maintain rates higher than nec-
strong
:; essary
in
order: to rprotect
tr
rties required by other modes.
the :*..v The
extremely
the
important
v.
fea-
Transportation Act of
relating to rates would seeni
'special comment.
of course,
exceptions to the gen- Commerce Committee, that hearunfortunately, their ings would begin on Jan. 13, 1953
particularly the before a Sub-Committee, Senator
.
.
,
empt, made subject to ' regula-> der the
,
,
Uni-
1958 Act, it is provided
As might be exction •' >;• <
• V
^ ;■
*
; that "rate«; of a carrier chall nntsituation with so many»/^
;
r
'
*
.
T.
,'
carrier shall not
compFex' factors, there is a wide' Redefinition of contract carriage be held up to a particular level
and removal of certain competi¬
funds
at their command
are
to protect the traffic of any other
George a. Smathers, Chairman, divergence of opinion regarding
and removal of certain comnetitive handicaps on common car¬
grossly inadequate to supply t 6 to
mode of transportation, giving due
study the deteriorating railroad a solution,
riers.
in
eral rule -but,
range
in
pected in
scope.
a
^
_
,
.......
.
.,
.
number and more
-
r
a
-
>
J
Paradoxical Situation
:
•}
-t
,
."4
•
1
In his remarks opening
the hearings or Jan
13
1958
'
,
,
Sen-
.'
,>
"However, one thing is certain.
-^e solu^10P 1S neither simple nor
It will
easy.
The industry's continuing need ator Smathers citing certain sta- single
for
capital funds, each year
new
created' a. paradoxical situar
has
v,
■j»
situation.
• ,«
■)
«
«
•
»
*1
• \V
j
«-
* I \
J
tistics, commented, in part,
as
fol-
consideration to the objectives of
January
be found in a
not in a single ap-
not
program,
When
January,
proach."
Improved Results
4
•
•
•
In
{he opinion of
your
United States
under
which
operate.
Government
and
Government Agency
Securities
is
it
compelled
i
■
on
rail
national
icy."
It
is
transportation
presumed,
of
;
S
Continued
>
'i
pol¬
course,
that the rates the railroads
t'-i
^
might
on page
72
''y'yfy/j
MyiMWi
v,-
D
I
C
S
O
U
-
N
T
to
.
CORPORATION
Legislatively speaking, the
Transportation Act of 1958 is the
outgrowth of the hearings, also
the repeal of the 3% tax on forhire transportation of freight. In
addition, the hearings are respon¬
sible for Senate Resolution 308,
which, authorized
the
Senate
Committee
you can rest assured
Commit-
p
tee, thesp hearings and investiga
these bearings and mvestieation, as well as the public rela¬
tions work so ably done by rail
•management, have been of inesti¬
mable.value, in getting the public
generally
to
better understand
the predicament of the railroad
indistry and the severe handicaps
.i
the
Congress meets again in
managements will prosecute vig¬
orously their . efforts to secure
lows:
/
Congress
OF
.
Interstate and For¬
;:GV
NEW
-
-
;'"
YORK
eign Commerce to study and re¬
°n
important problems of
transportation policy not yet re¬
solved, with recommendations for
port
future action.
Although
STATE, MUNICIPAL, HOUSING AUTHORITY,
REVENUE, RAILROAD, INDUSTRIAL,
BONDS
.
*
*
.
by any
means
a
for the railroad ills, it is
Committee that
the 85th Congress has dotienhore
to
correct
inequities hampering
panacea
Dealers
railroads
than
any
*
Congress
United States Government Securities
since the passage of the Transpor¬
tation Act back in 1920.
In this
connection Senator Smathers and
EQUIPMENT TRUST CERTIFICATES
a
number of his colleagues cannot
receive too much praise for their
Bankers Acceptances
splendid cooperation and sense of
fair
play.
There still reniains,
however, much more to be accom¬
Wm. E. Pollock & Co., inc.
20 PINE STREET, NEW YORK 5,
HAnover
2-824^
plished both
ternally.
1-2846
Listed
-1958
road
9643
santa
monica
blvd.. beverly
hills.
internally
and
ex¬
•
Lists Accomplishments
N. Y.
Teletype: N.Y.
cai_.
below
are
some
of
the.
accomplishments of the rail-,
industry in the field of reg-_
ulationr
*
Removal of the Federal excise tax
of 3%
on
freight charges.
Establishment
of
:
of
government-guaranteed loans to
«
*
•
».
.
•
•
In
the belief of your
the
PUBLIC UTILITY
-
not
aid
a
program
railroads otherwise
unable
Fifty-Eight Pine Street
New YORK 5, N. Y.
Volume
188
Number 5804
.
.
The Commercial and Financial Chronicle
.
(2551)
35
Report of 1BA Oil andNatural GasSecurities Committee
,
.
Some
- of
the
broad
of the full report of the Oil
scope
and
measure
Natural Gas
Securities
The Committee, chairmanned
by Edmond N. Morse, of Smith, Barney &
Co., New York City, included in its report to this year's
Convention, for
updating purposes, various topics discussed by its predecessors, and
explored
several new areas pertaining to the
industry with a view toward perhaps
Com¬
mittee is evident in the
following
recital of the topics discussed: '
.
"The
Refinery Situation; Outlook
Drilling Activity; Outlook for
the Offshore Area; The import
Situation; Natural Gas Situation;
Is Integration
Desirable?; Grow¬
for
ing International Character of the
Domestic Oil Industry; and lastly,
Canadian
Oil
of
some
matter
Developments."
these
In
j.
j
.,,
,
,.
,
demand
in
1957.
~
;
for ; crude
oil
abroad
ing
of the
Domestic
in
[oil] consumption in
probably show only a
will
modest
1%
increase
million barrels
over
the
8.8
daily consumed in
amount
give
of
an
,
during
mo-
We
firm in
opinion
stability
to
the
our
a
refinery capacity of some realization factor per barrel
of
9,570,000 barrels. ;
.ci/wj+yv-t; crude oil — which is directly reWe believe even a small gain in fleeted in the
gross profit margins,
domestic petroleum consumption
The changes that have occurred
this year is an admirable showing
demand and supply situa^ view of the m&ny 9dvciS6
tion
Qinpp
nrp
toKniofo/ir
iluences
affecting :the
business
are
in
picture. ' The increase elsewhere the following table. (Figures are
tirill Itly rf-vl
nArv/1
A; tvt411 £ Am
will likely exceed £$ (TtfhU
6%. The growth ih millions rv-C Unvivt/\1M per Jnrr \
of barrels
,
tr
that
.
/\xr
r\
tabulated
ft
V^n-M
day.)
:
•
demand situa-'
tion
is
of
1935
be-
and
within
tively
.
Other Western
that
a
Refinery Capacity
• N,
United States
na¬
ture,
eve
,1', \
a
temporary
li
1
.
adverse
•
Western
rela¬
~~mnm
Europe
-
X
short,
2.7
a
3.4
0.1
f:;
forced to seek to
2.2
j
'
2.9
:
0.3
2.4
•
•;"
;
>
3.2
0.2
>0.1
!
2.1
;
under
"
inaustr^ compliance,
since
.
*
.
averaging 1 2
were
barrels
riailv
.Since
that
fey /September: 1958, " the, level; of
imported"crude oil; Md- declined
j
■
-
his
outside of
areas,
oils,; which
allocation
time, the program
effectively
reduced imports to the extent that
greater extent
a
markets .in
to 98^°°° b/d;
-
! reduction
a
of air
. ,
^ : most vi9%.^ Over- thfe same-: tijhe
Considering the large number of
period, • crude oil. imports into
companies involved* and the
dif-vateas^asP^&elifoeky^Mountain^
fi'cult economic conditions underv
were down 11%' Wnd on the West
which the import control
program
h&s operated during the
c^oast had declined
the
year,
first" nine
:
record of the oil industry-for 1958
with respect to compliance -has
been excellent. The
industry's fear
vtAnm/l'/viXM..
of
mandatory controls ", together
..^1
have
3.8 :
unfinished
United States
million
entrants have been
i.
_
contributed to the
the^ea?
^
port
controls
in
July
imports
U. S."crude oil
crude
whfe^S
'
*
__
The
imports
crude
•
above
oil
:
had
;
j
figures
are
;
.
fallen
~
t
•
•.
regarding
sharply in: contrast
**9*}*d
im-
1957, total.
were
ihe
For
the ~Rockv
level
ago
abouf 32%.
ment of this record.
of
38%."
of" 1958;
of
esst
Coasjfc crude
achieve¬
Following the initiation
months
oil14 inxoorts
producing industry
,1957
?r
?
'
'
1985
9.6
>0.8
*
—mm
As
with the interest of most
importers
in the domestic
Daily Demand
1957
-
3.8
,
Hemisphere!;mnm'tirn
Asia, Africa, etc.-____
merous recent
as
rapidly-as
•!??
/
abroad, the nature of domestic demand
permits; a
much
higher Industry Comuliance
"free world," as contrasted
of
been
In addition, at the start of the
crude oil import control program,
crude
oil imports for the
total
...
crude oil import restrictions.
new
,
July 1958, were below their quota
until. September.
i
expected to increase
J;0" Is "ce.19^
are
ports
have
.
consequence, both the long standthe^ ing foreign producer and the nu-
•
1957.
accounted for by the
imports of two inde¬
pendent refining companies.
Im¬
excessive
increas-
.
the United
States
expected to gather
is
Rocky Mountains
be
can
.
.
,
.
with
1958
,
whole netrolemn inHoctrv
whole petroleum industry.;While the growth of consumption in the United States is not.
,
approximately 53.9% of the total
Excerps from the Report follow:
.
.
mentum and will
the United States averaged 8,764,000 barrels per day during 1957;
*
.
ni
j
over* 14
million barrels, which would show
than a 60% increase over
The
recharted in order to
update facts and conclusions dis¬
years.
'■l
and
attitude toward the oil industry."
a new
more
was
cussed in previous
tt
the United States will be
the amount tlsed
the subject
areas,
"creating
east of the
area
i J
1
below
the .national, allocation for
secutive months through
nnn
10;cbn- W
July l958.
;
Free World
the rate of
5.3 :x\ i!l8.3 /
: 3.1
16.3
Beginning in August 1958, crude
growth
in
oil imports rose to
977,000 barrels
Edmond N. Mors*
Any acceleration in the rate of ;
The Import Situation
consumption
ago peiiod
'
daily, .or about -5% above the
r :
increase in consumer demand for
will average
Nineteen hundred fifty-eight has quota,, and in September of this
import Program Revisions •
3-4% as compared with a 5-6%
oil
products should restore the marked the first full year of op- year, the latest figure'
available, • In a
business as complex and
annual rate of increase during thd' balance between
supply and de-Veratioh of the Voluntary .Petrol- crude imports exceeded the quota
dynamic as the oil industry, it'* is
eum
Import Control Plan insti- 1—
10 years ending with 1956.
It is mand and reduce the pressure on
by approximately 6%. AIL of the clear that any ^
import control pfotuted by the oil industry and the
estimated that within
15
years prices and excessive inventories,
" -* Continued on
government in July 1957. The im¬ surplus imports - occurred in the
page 41
daily consumption of crude oil in especially gasoline.
* *'
portance of the
period of time
'■-.T ■'
Parable^af
.
.
-
»
^
year
vestment
view
is,
from the in¬
community's
point of
believe, summarized
we
follows:
as
"
*
"
Carl M.
.
(1)
The investment implications
of any petroleum import control
Primary Markets
program, or conversely the lack of
such a .plan, have been brought
Institutional Securities
to
assessed
/
v
<,
U.S. Governments5
<
.
.
.
i
...
date
Municipals
,
,
,
Loeb, Rhoades & Co.
"
1
and
,
t*'-
principal Commodity Exchanges
„
NEW YORK
5, N. X,
'
.........
.
...
.
-
.
t
-
..
Underwriters and Distributors
,
of
^Corporate and Municipal Securities
(3)
The
for
need
constant
re7
■
view arid
the probability of
con-j
revision of any import
in the light of changing
conditions in the dynamic oil inr
dustry, has beOn made clear.
j
LONDON, ENGLAND
program,
•
j
A
*
,
St.
New
York
Ithaca
^
State:
Middle-town
•
j
implications from an in¬
vestment point of view of the Vol¬
untary Petroleum Import Control
Ehnira
* » 5.
Syracuse
•
;
Geneva
•
Utica
•
StroudsbiirgJ-, Pa.
*
,
f
■
IV
t
,
Regis Hotel, New York City
Auburn
Investment Implications
;
.
k
■
42 WALL STREET
probably be
having been very good,
as
.;
'
*1
..
Public Utilities
J
-\.
can
siderable
V
*
■■
Members New Yor\ Stocl{ Exchange, American Stoc\
Exchange
sharply.into fociis during the year.
(2) The oil industry has had ap
opportunity to test for a full year
its ability to comply with a
flexif
ble voluntary program, and the
results
^
,
Hohiell
•
Watertown
•
t
'> 'C*•
The
Industrials
Railroads
*
Plan during 1958 have been con-?
siderablfe. Fundamentally, the con¬
;■
CORRESPONDENTS
Anderson
8C Strudwick
Betts, Borland
Boetteher
&
Richmond*
.
Co
8C
(jharlottesville, VtU
i.
Chicago, III,
..Denver, Colorado Springs, Grand Junction,
*
Pueblo, Colo., Chicago, IlL
Nashville, Knoxvitlet Jackson, Memphis,
Clarksrille, Tcnti., Atlanta, Ga,
.
Company..
,
trol
of crude
with
Ecpiipment Trusts
oil
imports together;
prorationing have
domestic
helped
provide
relative
stability
for the price of domestic crude oil
Preferred Stocks
during
tic
Bank
period of adverse domes-!
world-wide
over-supply.
producing crude
States, this prog^am has undeniably helped main¬
tain the. value of'reserves and, in
Chaplin & Company
E.
W.
,
r.
Paper
f
,
addition, has assisted ,in the main¬
flow, levels.
tenance of. cash
Dittmar
A.
G.
8C
..
is
buyer of crude, oil
a
...
8C
Co,, Inc..
t
W.
Hutzler
Exchange
'
San Francisco
Dallas
,
Cleveland
*
*
..
.
L.
Lyons
expensive foreign chude has
the import
con-;
;
.
•
.
„•
„
depress
product
prices,
,
<
*
Chicago
West Palm Beach
themselves,
particularly^ in seaboard
areas.
Hence, for the domestic refiper onrbalance, the import con¬
trol program can be
been one factbr
said to
Sutro
&
year.
,
.
Co
,
San Francisco, Los
Julio C.
.,
Angeles, Beverly Hills, San Jose, Calif,
CORRESPONDENTS
Co
^...Montreal, Canada
...
&
Co
.
.*.
Toronto, Canada
Bromberg
&
Mercantil
Yamaichi
Ian Potter
to
8C
Richardson
Paulo A.
Diego
De
Roldos.
Inversiones, $• A. ris
Securities Co.,
Sao Pauloj Brazil
Montevideo, Uruguay
......
.
.r.. f.C7...
Ltd,.
8C Co
V...
.Caracas,
:
Venezuela
Tokyo, Japan
.Melbourne, Australia
PRIVATE WIRE SY'STEM
reduced margins experienced dur¬
ing the
A.
-
...
.......
FOREIGN
have|
contributing
.
..
Hopwood.
.
Greenshields
to
Co.,
..........
.Baltimore, Md,
Minneapolis,- St. Paul, Rochester, Minn., '
- '
Billings, Great Falls, Mont,
Co..
.Cleveland, Shaker Square, Canton, Columbus, Toledo, Ohio
Company
Dallas, Texas
„
Prescott 8C
Sanders &
addition, prod¬
products
tehded
&
;
.Chicago, IH,
.Charleston, Parkersburg, W, Va,
Washington, D. C., Alexandria, Va,
Mifwaukee, Applcton, Beaver Dam, Chippewa Falls,
Grecti Bay, Janesville, Madison,
Racine, Waukeshap
Wausau, Wisconsin Rapids, Wise,
Louisvillei Danville', Lexington, Bowling Green, Ky,
Mead, MLiiier 8C Co..
Piper, Jaflray &
T.
have
NEW YORK 5, N. Y.
Philadelphia
.,
t
imported crude oil, Together with
Boston
Chattanooga, Tenn,
8C Co
Hardy & Co
Johnston, Lemon 8C Co.
imported
•
;
Waller C.
ucts manufactured from less
costly
SIXTY WALL STREET
St.
,
Co....
Farwell, Chapman
on-balance, its ability to purchases
been impaired by
trol' program.
In
Members New York Stock
Son9
&
Pittsburgh, Pa,
Germantown, York, Pa,
...Hartford, Conn,
San Antonio, Dallas, Texas
Louis, Clayton, Mo., Springfield, Belleville,
Jacksonville, III., Houston, Texas, Little Rock, Ark,
« '
* Keokuk, Iowa, Shrcveport, Lake Charles,'La,
Company, Inc
-
less
&
Co......... Philadelphia, Lancaster,
in-;
tegrated. company, on the other
hand, to the extent that such si
company
Salomon Bros.
8C
Company
Edwards
Elder 8C
Loewi
With respect to the domestic
Canadian Issues
Clark
Cooley &
For the company
oil in the United
Acceptances
Finance
......
a
and
J. C. Bradford & Co.'
Providing immediate
.
Turning. to
..
the
companies, the U.
.
international
S. market for
.
access to Primary Markets through Branch
Offices, Correspondents and their connections in over 100 Cities
throughout the United States and Canada
foreign crude has been curtailed
as
a
result
of
the
imposition of
W////////////////////////////////////////////////////////////////////////////////////////////////////////V//////
The Commercial and Financial Chronicle
(2552)
36
..
Thursday, December 18,1958
.
Report of IBA Canadian Committee
Chair¬
Committee's
Canadian
Canadian banker,
Arnold B. Massey of Mills,
Spence & Co. Ltd., Toronto, Canada, delivers an interpretative in¬
sight into economic events in Can¬
ada and an assessment of Canada's
man,
-
•
presents from a
recent
heading
committee of American and Canadian bankers,
a
Canadian point of view an interpretation of his country's
performance, Government and Central Bank action, and major
economic
.
for small homes.
problems underlying nation's domestic and foreign policy.
particular problems to create a
better understanding of her do-
or
ference
aspects
of the Canadian economy: a sum¬
was
-somewhat
Automatic Stabilizer
income
and
action
discretionary
mortgage
so
more
,
smaller, areas of the economy and they the cash deficit for the 1956-1957
but still significant. However, the constitute a large portion of the fiscal year. In passing, the United
Text of the Report, including
dip in Canada's economy was of total spending. In addition, other States deficit to be of comparable
statistical indices, follows:
longer duration than that experi- automatic stabilizers such as un- size In relation to Gross National
enced in the United States.
employment insurance, come into Product would be over $21 billion,
This report
by the Canadian
play with variations in national
Broactiv sneaking the recession
Committee describes three
mestic and foreign policy.
-
of far-reaching importance, both
economically and financially. In
September 1957, the Central Mort¬
gage & Housing Corporation was
authorized to make direct loans
Within
loan
a
month
approvals
than doubled and then
re¬
ceded to a plateau still much
higher than would have been the
case had the. new program not
been inaugurated. Allowing for
seasonal adjustment, total housing
to be reducing our Government receipts by about $300
million in the current fiscal year.
appears
contract awards doubled between
September 1957 and March 1958.
Government
directed towards stabilizing the
Pem??dVf?r".conventional loans
level of economic activity has now
{?ay,.e
™ ^xpandm the last
matic stabilizer in her Interna- come to be expected from Federal On the expenditure side it is vir^ hall of 1958, which suggests that
tional Payments. When we have Governments,
especially in the tually impossible to calculate the•^,ireft
loans through the
prosperous times we are heavier event of an economic recession.;
ultimate effect of the recession * Central Mortgage & Housing Corimporters than during a recession
jn Canada there is much more' since Governments today exercise P°^.HOn ^will mow be a smaller
and capital flows into our country discretion allowable in the classi- vast discretionary spending power ?
3on °.
total funds required
in larger amounts.
During a re- fication of Government receipts when an economic recession oc- ,r*°T'mousing.
'
"
;
and Central
cession the reverse is true.
of the performance of the
mary
Canadian
-
;
\
in
economy
'
economic
the
'
1957-58;
cf
recession
:
some
highlights of
:
1
'
and
: are
indi-
an
a
of
few
major
the
of
problems
-.
our
the
Canadian
Arnold
of
Report of
the
the purpose
B.
Massey
outstanding
.
,
characteristics
and
tal in Ottawa.
.
•The recession of
dicated
curs.
with
Canadian
by
business.
as
The stabilizing effect
mnct
about
reflects
This
housing
the
units started in Canada in 1958.
Thisprevious record of 1955 by al¬
is a new record, surpassing
the
Public and Private Investment
most
million
$700
Mortgage
expendi-
. The
small home loan program
is filling the housing needs of
families with limited assets, but
quite adequate income to service
the debt. There is still a great
deal of sound potential housing
demand in this limited asset market. It now appears that there
have been at least 153,000 housing
decline in capital expenditures in
otiier sectors.
it i«
merit budget picture, public and in 1958 has been building almost
private investment in Canada, 40% more housing units than the
amounts to about 26% of Gross United States.
In this field,
n^ht Ri»fiindinr
•
expenditure fpr^hpusing, schools,.*;- .
highways, hospitals and other \r Another important stepNational Product.
almost
public works
Housing
&
completely
zianiina
<i,o
.!■
«oni+ni
r...
the
Government took was the debt retundinff oneratmri which was in-
adjusted
was much
less severe in
Canada than in the United States.
data,
Using
percentage
Gross
I
National
measure,
change in the
Product
the decline
one-third
about
was
as
the
Canada
in
as
large
as
can
substantially and directly af-
feet the cash position
ernment.
a
Through
of the Gov-
therefore, amounts to
•
that in the United States. In terms
of
some
other measures,
the dif-
aver
the Bank of Canada have in the
$1,500
the course of
tend
stable
than
to
expeditures
be
in
Continued
M
m
MAR
APR
1957
293
287
284
291
1958
227
234
231
221
INDICATORS
,
on
Mil
243
m
m
SSI
«2J
m
293
258
247
233
234
229
246
300
232
m,
JEN
301
247
259
276(e)
103.3
109.9
160.1
152.3
39.7
39.9
more
other
Industrial Common
1.
Sricas
Stock
'■
74
page
indicators
srasobaiu adjusted bosotss cycus
business cycle, our Government
expenditures
*n y°ur c°untry and ours have
million which is about nine times past year made several decisions
IJiADING
:
11% and 1957 by over 25%.
relation to population, Canada
Turning away from the Govern-
mainly, increased
made * directly by
loans
Central
novt
Tr.is
measure.
ture offsets to a large extent the
non-budgetary items will involve
a further net drain-on financial
resources' of over .$800 million.
.
exact
for all expendi-
In the current year,, howit is possible lor us to consider much of the direct housing
loan expenditures as an anti-re-
.-cession
-
the
accuracy,
or causes
ture.
compared with a deficit last year
a#
nnhr
c?qq nun nnn
0f only $38,000,000. In addition
com-
]>ared with just over 17%. in the
United States. Further non-budg-
to
much
ever,
,
por ^jle CUrrent fiscal year
amount
It is also impossible to assess
motives
anticipated that Canada's Federal
Government
budget deficit" will
of the ex-
the Gross National Product,
..;
•
Budget Deficit
penditure program of the Federal
HmmrnmAnf ic irr.nnrt^nf in
Government is important in Canada, as it is in the United States,
Specifically, Canada's Federal
Budget amounts to. about 16% of
1957-58, as in¬
seasonally
expenditures
This
decades, has the effect of cushion-
not
Committee is
problems of our economy and to
explain some of the actions of the
new political regime at our capi-
'
and
have
ing recessions.
primarily to record recent events,
but to interpret
from the Ca¬
nadian viewpoint,
some of the
..
great auto-
phenomenon, evident in many of
Canada's business cycles of recent
be
that
assured
■•r
a
between
we
internal
nation.
Please
differences
the
has
prosperity, Can- budgetary and capital account than
ada leans
heavily on purchases js the case in the United States,
from
other countries, but when
p0r instance, the old-age security
times are poor she depends more fund,
though
substantially
aeon local production for her needs,
pendent upon direct taxation, is
This has a stabilizing effect on not classed as a budgetary item,
cation of what
»
for
reason
that Canada
When
action,
Bank
One
is
•
(1935-39 100)
f'
Housing Contracts
1957
44.6
56.4
48.4
77.6
64.3
63.8
67.6
74.3
65.3
94.2
('000,ooo-l)
2.
1958
101.3
122.2
134.5
126.1
118.7
100.1
110.7
121.6
146.2
118.1
Industrial
1957
159.9
223.2
197.2
182.5
166.6
160.2
144.9
163.1
158.1
Baginsariiig Con¬
1958
241.5
140.2
175.1
223.2
162.2
154.2
162.9
146.0
193.8
40.8
40.7
40.8
40.5
40.6
40.6
40.8
39.8
39.8
40.0
40.3
40.8
40.4
40.6
3. Business,
and
tracts
250.1
(*000,000-1)
f
'
40.8
Average Weekly Hrs.
1957
Manufacturing
1958
5.
Corporate Profits
1957
(•000,000-1)
1958
6.
Itiolesale
1957
250
1958
230
4.
156.9
'
,
39.3
.
40.2
40.5
"
40.5
:
(
Underwriters and
Prices
Industrial Materials
!
408(e)
383
: 358
; 247
246
245
243
231
230
226
227
228
123
123
124
.
...
231
229
.
♦
•
236
.
233
229
238
242
2a
■
403
414
446
443
231
230
231
»
<
•
(1935-39 100)
CODJCIDBIT
distributors of
7.
'
3
INDICATORS
Industrial
123
1957
r
•
1958
flq>lcyeent Index
118
209
215
216
356
361
403
287
289
288
274
280
281
124
119
•^118
108
-
123
123
.
120
121
118
123
124"
■s-
119
118
116
119
"
124
j
•
(1949 100)
Corporate and
'*-8,
199
1957
340
; 339
1957
291
i
; i 293
1958
('000)
199
1958
Persons Without
Joba
;
276
280
!
Municipal Securities
9.
Industrial
Production Index
'
<
242
>
J—
266
480
.471
..
...
..
285
317
347
463
-
442
282
278
285
280
284
279
284
'i
(1935-39 100)
279
'
1957
Product-Ex Fan
272
276
j
280(e)
T
'
,
7552
7574
7595
7709
7666
7698
1958
10. Groaa National
377
378
526
•'
7760(e)
(•000,000-#)
6384
6402
6644
443
446
442
386
ay
a3
271
265
258
234
235
234
233
233
1957
6540
6489
6510
6490
65U
6464
6369
6394
6474
1958
6462
6602
6441
6385
6629
6857
6563
6942
7251
Iaports of Goods
1957
490
,500
502
483
476
471
467
473
464
(•000,000-#)
1958
428
423
453
401
435
445
422
466
418
13. Exports of Goods
1957
410
406
403
392
402
398
403
412
406
(•000,000-#)
1958
395
384
411
398
459
a3
380
ao
368
293
289
289
283
274
280
273
270
253
253
254
259
259
253
242
267
237
236
233
232
11.
Cheques Cashed In
Clearing Centres
Dominick
&
Dominick
'
(a)
(<000,000-#)
12.
Members New York, American &
Carloadings
Toronto Stock Exchanges
(•000 care)
(b)
14 WALL STREET
273
1958
-
.
-
.
_
•
•
1957
(1935-39 100)
237
236
236
236
236
237
1958
15. Wholesale Price
Index
273
1957
14. Freight
;
'
234
,234
233
231
231
231
-
i
NEW YORK 5
1.57
1.58
1.58
1.58
1.59
1.59
1958
1.65
1.65
1.65
1.65
1.65
1.66
1.65
1.66
1957
1207
1010
1232
1193
1181
1173
1158
1171
('000,000-#)
1958
1309
1287
1258
1235
1256
1204
1232
1228
4177
4225
4239
4300
4332
4345
4199
4211
4148
ao9
4086
4068
1220
4427
4389
4257
4272
4186
4292
1958
1250
4370
4310
1189
1957
1.64
1206
1176
1.64
1.66
17. Retail Trade
...
1957
1.60
;
1.62
1.61
16. Average Hourly
Earnings Mfg. (#)
Canadian affiliate
235
!
4145
18. Manufacturer's
Inventories
1.61
1
(*000,000-#)
Dominick Corporation
19.
1957
Par Cent
3.00
3.55
3.70
3.71
3.53
3.83
3.75
3.55
2.45
2.60
1958
Day to De7 Loan
Rate
3.10
3.05
2.45
1.03
1.43
1.65
0.65
0.63
0.40
:
2.50
3.53
S
Consrasr Installment
of Canada, Montreal
rimhm
1957
1555
Credit
20.
1958
1661
NOTES:
Sources
Bank of Canada,
are
as
ore,
1601
1615
1606
1618
1624
1615
1685
1677
1678
1665
1625
1652
'
1665(e)
1628
1621
1626
i64o
t
(•000,000-#)
iron
1579
3.25
#14;
of
original
data—Dominion
#19, 20; McLean Building Guide,
Bureau of Statistics, #1, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18;
#2, 3;
(a)
excluding Toronto and Montreal,
#11;
(b) excluding grain and
Seasonal Adjustment by General Research Associates; Most recent month (e), GRA estimate; Data shown here
the latest revised
Uieyoocu^.i * "/<
~
seasonally adjusted figures; Revisions, due to changes in basic data an:I seasonal factors, are
*■«
7-ZC
,~
."I
-v
•
•
•
-
~~
~
"
-•
corpora tod
'
—
-f
Volume
188
Number 5804
,
.
The Commercial and Financial Chronicle
.
s-:/
•
In Attendance at
ABRAMS, JAMES S.* "
Allen A Co.,
Sterne,
BARNETT, Jr.,
M.*
Braun, Bosworth
agee, rucker*
AHBE,
-
New York
ADAMS,, WILLIAM
&
Co.; Detroit
BASS,
Inc., New York
Jack
James
The
Richardson & Sons, Winnipeg
.
.
.
•'
New York
V
-
Lehman
BELL,
f-:
,
A. C. Allyn & Co.,
Chicago
ALMON, TAYLOR B.
ALBERT
j
BRECKENRIDGE, HUNTER*
McCourtney-Breckenridge &
V
ANDERSON, GLENN E.
Raleigh
Pittsburgh
Lazard Freres &
BLACKFORD,
|
Corporation,
A.
M.
Law
HENRY
I'./'
EUGENE
-
BLEIBERG,
Harriman Ripley & Co., Philadelphia
ARNOLD, BL WILSON*
Boston-'-'-
Arnold A Crane, New
>
E.
Pollock
ASHPLANT,
F.
B.
A
- v
New
York
"
FREDERICK B.
S.
Jr.,
BOEIiMLER,
Charlotte
A
A.
G.
Becker
•
Co.,
BAKER, PHILIP D.
Los Angeles
BOGERx,
New
Chicago
BAKER, RALPH D.
R.
Sons, Winnipeg
LAWRENCE*
*
M.
JOHN F.
National
t
,
Morgan Stanley <fc Co., New York
Securities
Corporation,
BORKLAND,
A
Research
Bear, Stearns & Co.,
New York
BOWEN,
Mr. and
Mrs.
FRANCIS*
Puerto Rico,
&
:
COUIG,
.,
COYLE,
'
JOHN
II.
i ■:
■
'
;
(V.'hv
,
.
'
Dattels & Co..
~
•
:
•
»
•
Kitchener
DAVANT, JAMES
W.
'•
'
"Paine, Webber, Jackson & Curtis,
■
''' V
;
;
:
'
-
.
DAVIS,
V
POWELL
G.
Investment
DAVIS,
Is';- V
v;i'
; ;
•
•
•
I '> i
•
.t';.','
Budock, Ltd., New York
.Calvin
;
..
Corporation, Norfolk
GEORGE
,
W *
Davis^ Skaggs A Co., San Francisco
;
/
-
DA VIS,. SCOTT*
'
*
,
Ralph W. Davis A Co., Chicago
II.*
V
1'
(
.
SHELBY CULLOM
Shelby Cullom Davis & Co., New York
DAVIS,
;
:
Smith, Moore & Co., St. Louis
V
Co., Chicago
DARBY, EDWIN W.
>„
Chicago Sun-Times, Chicago
:
DARMSTATTER, E. WILLIAM
.
Stifel, Nicolaus A Co., St. Louis
DATTELS, DAVID R.*
(JACK)
ALFREDJ.
ROBERT
.
;
Co., New York
.
DALENZ, ' JOHN:: McG.
The Chase Manhattan Bank, New York
F.
Blyth & Co., New York
BUSH, ROLLIN C.
/
Continued
on
page
,
48
.
The First National City Bank/New York
BUTLER,. JOHN G.* •
••
Prescott, Shepard & Co., Cleveland
EDMUND
'
,
J.
(Hqyden„ Stone A Co., New York
CRAFT,
CRAGO,
JAMES
DALTON
•
"
8.*
Minneapolis
'
BURKIIOLDER, II. FRANK
"
Equitable Securities Corporation,
III,
J.
Hirsch A
Harris Trust & Savings Bank, Chicago
BURNS,
WALTER
<
Co., Minneapolis
CUTLER,; PA^FE WM.
Chapman & Qutler, Chicago
St. Louis
Coughlln & Co., Denver
,
Weeks, Chicago
!★
★
★
*
*
C.*
Phelps, Fenn & Co., New York
Phelps, Fenn & Co., New York
CAFONE, THOMAS C.
Hutton
E.
CAIIN, Jr.,
&
San Juan
CALDWELL,
The
ALL MARKETS ON ONE CALL
Co., New York
WILLIAM
M.
Henry Herrman & Co.,
Government Development Bank for
*Denotes
HOWARD E.
Hornblower
W.
Ernest W.
Tucker, Anthony & R. L. Day, New York
FRANCIS
COUGHMN,
-
BYRNE, WILLIAM D.*
Minneapolis
Jr.,
Edward D. Jones A Co.,
F. Hutton & Co., New York
BYRNE,
Shillinglaw, Bolger & Co., Chicago
Rowles, Winston A Co., Houston
F.
Nashville
j BORIN, LEIGIITON II.*
IL*
BALDWIN, ROBERT II. B.
BARKER,
!
Sliillinglaw, Bolger & Co., Chicago
BOLGER,
James Richardson A
•"
- -r
Dillon, Union Securities A Co.,
DAVH)
Dealer, Cleveland
BUNN, JOHN W. f
Stifel, Nicolaus & Co., St. Louis
BURGERT, WOODWARD*
Association,
,
JOHN
BUHSE,
■
.
York
BOLGER,
1
H.
Jr.,
Eastman
White, Weld A Co., New York
BAKER,
E.
/
Plain
&
•A. G. Becker A
Collins & Company, Chicago
.Wrn. J. Mericka A Co., Cleveland
COOPER, WALTER W.
;
F. S. Smtthers A Co., New York
COSTIGAN, EDWARD J.
1
Reynolds <te Co., New York
Boenning A Co., Philadelphia
M.
&
Bankers
BOENNING, HENRY D.
BABICH, LEO B.*
;
.
-Kalman
Spencer Trask A Co., New York
COOK, R. JACK*
BUECHLER, RICHARD K.
■
Co., San Antonio
Hill Richards A Co.,
;V ;-r.
:
W.
ERWIN
BOENNING, II. DICKSON S.
Eoenning A Co., Philadelphia
-
Miami Beach
BAIK1), ANDREW
BRYAN,
.
'
Washington
W ILLIAM
San Francisco
<
CURTIS,. ARTHUR W.
■
-Hugh W. Long & Co., Elizabeth
COOK, A. HAL8EY ' : i
r" ■■ ■<
•
The First National City Bank, New York
COOK, HAROLD H.
Brush, Slocuinb & Co., San Francisco
Cleveland
.
DeHaven A Townsend, Crouter & Bodine,
Philadelphia
: v
■'
AYRES, Jr., ROBERT M.
Russ
;
WARREN IL
Investment
Dickson & Co.,
Atwill & Co.,
F.
The National City Bank, Cleveland
ATKINS, J. MURREY*
R.
v-
Blewer, Glyftn <fe Co., St. Louis
BODMAN,
Julien
E.
CURTIN, JOHN
C.
C.
COLTRIN, FREDERIC C.
/
BRUSH, GERALD F.*
;
; BLYTII, ROBERT B.*
Ashplant A Co., New York
AT WILL,
:
'
BRYAN, JOHN E.
ULEWER, CLARENCE
Orleans
Co.,
M.*
Barron's, New York
ARTHURS, ADDISON W.*
Arthurs, Lestrange A Co., Pittsburgh
ASCHER, II. ALBERT
Win.
ROBERT
•
New York
CLIFFORD
Co., New York
LYNN*
CUNNINGHAM, BERNARD J.*
.Blunt Ellis A Simmons, Chicago
CUNNINGHAM, FRANCIS J.
Kidder, Peabody~<& Co., New York
CUNNINGHAM, KIRK WOOD B.*
Cunningham, Schmertz & Co., Pittsburgh
...
Buffalo
IIARRY
of America,
Jr.,
G.»
&
Harriman Ripley & Co., New York
Collings A Co., Philadelphia
COLLINS, JULIEN H.
.
New. York
Marine Trust Company,
Bank
•
ARNOI.D,
C.
Salomon Bros. & Hutzler, Chicago
BROWNE, ALAN K.*
r.Z&'T
'
.
,
A Howard,
•
BOWN,
J.
Co* Spartanburg
BLAKE, JOHN L.
Eaton
Co., New York
Jr.,
A
E. F. Hutton A Co.,
—
New York
Co.,
JOSEPn
Crowell, Weedon« & Co.r Los Angeles
CULLEN, DANIEL J.*
Walstbn A Co:, San Francisco
:
CULMAN, JOHN K.
;
■'
.
COLLINGS,
,
BROWN, EDWARD L.*
V
'
'* "
Dean Witter & Co.,
>
Bingham, Walter A Hurry, Los Angeles
Jr., EUGENE R.* "
\
York
Hanscatic
Exchange, Boston
WILLIAM IL*
BLACK,
-
<
,
Hartford
BROPI1Y, FRANK J.
R. S. Dickson &
Co., New York
BROWN, AUSTIN* '
\ BINGHAM, CURTIS II *
r?
^VX
II.*
A
Jr.,
Luce, Thompson & Crowe, Kansas City
CROWELL, WARREN IL*
COLEMAN,. FRANK' X.
Gregory & Sons, New York
COLEMAN, SYLVAN C.
Philadelphia
JOHN
York
•
*
Dallas
COGGESHALL, GEORGE K.
Schoellkopf, Hutton' A Pomeroy,
New
York
CROWE, JOSEPH M.»
Philadelphia
Putnam & Co.,
Fort Lauderdale News, Fort Lauderdale
.
Mackall & Coe, Washington
APPLEGATE, A. LOWRIE
</• i >
Hulme, Applegate A Humphrey,
ARMSTRONG, GEORGE H.
Stock
Boston
BIEN,
V.
,:y;
Brooke & Co.,
■
.
Fidelity-Philadelphia Trust Company,
Shearson, Hammill & Co., New York
BROOKE, Jr., FRANCIS M.
" > -
Municipal Finance Officers Association,
,
Harriman Ripley A Co., New York
COCULO, T. ANTHONY
Co.,
Louis
BROOKS,
PAUL*
I;
•
D.
New
Dcvino
CROSSLEY,
Rambo, Close A Kerner, Phalidelphia
CLUETT, W. SCOTT
BRITTAIN, MILTON C.
Bank, Chicago
L.
J.
C.
Morgan A Co., New York
CLOSE,
BREWER, ORLANDO S.*
;
Hallgarten
CROSS,
Chicago
ABRAM*
CLAYTON, CALVIN W.*
G
Clayton Securities Corporation, Boston
Phelps, Fenn & Co., New York
The First National
Inc., New York
L.*
r.
GORDON
BESSE, HARRY W.*
\
Carolina Securities Corporation,
ANDERSON, HERBERT R.
-Distributors Group,
St.
R. W. Pressprich A Co., New York
BERGQUIST, P. ALDEN*
;
A.
:
&
Co., New York
BRAYSIIAW, DONALD B.
Lord, Abbctt A Co., Atlanta
' !
'
•
Bacon, Whipple A Co., Chicago
CHARLES L.
Dow Jones A Co., New York
York
McDonnell
,
BERGMANN,
Rauscher, Pierce & Co., Dallas
New
Moseley & Co., New York
BRAUNS, ROBERT A. W.
;
deB.
Philadelphia
J. P.
Jr.,
-
CROSBY, PAUL H.*
Bell, Gouinlock A Co., New York
CROSS, CALVIN M.*
>
W. Clarke <fe Co.,
CLAUDE,
JOSEPH
Asiel- A Co.,
American National Bank, Chicago
John
'
Bank,
Goldman, Sachs A Co., St. Louis
CROLL,
CLARKE, JOHN W.*
J.*
F. S.
Cutter, Bennett & Co., New York
BENT,
P.
-
CREELY, WALTER J.*
;
Johnson, Lane, Space A Co., Atlanta
CLARKE, JAMES II.
Howard, Boston
EUGENE
Bareus, Kindred & Co., Chicago
BRAUN, Jr., FREDERICK C.
BENNETT, FRANK S.
A. C. Allyn A
Co., Chicago
ALLYN, JOHN W.
&
BRASHLER, RICHARD
Chicago
San Antonio
GEORGE
The Atlantic National
Chicago Tribune, Chicago
CLARKE, HARRISON*
Thomson & McKinnon, Miami
■■"■•V; •'■
•
Bros., New York
WILLIAM A.
Drexel A Co.,
"
-
ARTHUR C.
/New
Eaton
.
HARRY*
Russ & Co.,
'
WILLIAM J.
.v...
Allison-Williams Company, Minneapolis
ANGLIN, THOMAS
.
W.*
Jacksonville
Blunt Ellis A Simmons, Chicago
CLARK, WILLIAM N.
"
:
Childs & Co., New York •:
BRADLEY, S. WHITNEY
BRADY,
;
/
D.*
WALTER
F. W. Craigie & Co., Richmond
CRANFORD, JAMES A.* V
Calvin Bullock, Ltd., New York
CLARK, ROBERT M.*
1
C. F.
>
-
BEIMIORX, Jr.,
ALLISON,
-
Milwaukee
Beecroft, Cole & Co., Topeka
BEHRENS, BERTRAMS
'
,
\
New York
BOFNTON, ELWOOD
.
F.*
ALAN II.'
BEECROFT,
ALLEN, HERBERT
•"
■
Milwaukee Company,
DANA
'
Auchincloss, Parker & Redpath,
Nashville
Co.,
Julien Collins A Company,
-
ALLEMAN, F. MONROE
Leedy, Wheeler & Alletnan, Orlando
ALLEN, ALONZO C.
Blyth <te Co., Detroit
^ 1 v
*
AX ASTASIA,
M.
A
Hayden, Miller & Co., Cleveland
BEDE,
>
'
Bass
BAXTER,
Texas Bank & Trust Co., Dallas
ALLYN,
M.
*
BOYCE, J. RAYMOND
CRAIGIE,
Municipal Finance Officers Association,
Chicago
; ■
CLARK, ROBERT E.*
Mercantile-Safe Deposit & Trust Co.,
Baltimore
BAXTER, Jr., CHARLES M.
Eaxter A Co., New York
■
R.
ALEXLSSON, GUSTAVE A.*
Granbery, Marache A Co., New York
Allen A Co.,
JACK
Jr.,
CLARK, JOSEPH F.
Bank, New York
.
BAUMANN, JOHN F.*
Rockland-Atlas National Bank, Boston
ALEXANDER, NORMAN J.
ALEXANDER, TED
:
.
B.
The Chase Manhattan
BOYCE, C. MEREDITH*
Barrow, Leary & Co.4 Shreveport
L.
Distributors Group,
AHEARN, JOHN W.
BOWMAN, FRANCIS
Harry Downs & Co.,,New York
BARROW, WILLIAM R.*
Agee & Leach, Birmingham
JOHN
GEORGE E.
The First National City Bank, New York
HARRINGTON, CHARLES S.
y,
New
York
WILLIAM R.
First Boston
Corporation, New
JOHN W.
Goldman, Sachs & Co., New York
CALLAHAN, PAUL A.
York
CALLAGIIAN,
Halle a Stieglitz, New York
CALLAWAY, DAVID II.*
Complete Brokerage Service
\
for
First of Michigan Corporation, New York
CALVERT,
GORDON
L.
Investment Bankers
Investment Bonds and Stocks
Association,
Dealers, Brokers and Dealer Banks
Washington
CANNON, FRANCIS A.*
The
First Boston
CANVIN,
Corporation,
II.*
JACK
First California Company,
CAPEK,
CHARLES
New York
San Francisco
A.
Lee
Higginson Corporation, Chicago
CARBERRY, PATRICK
Railroad, Public Utility, Industrial,
Wall Street Journal, New York
CARPENTER, EDWARD E.*
McDougal & Condon, Chicago'
John
Nuveen & Co., Chicago
CARRISON,
'»
GEORGE*
H.
Pierce, Carrison, Wulbern, Inc.,
Jacksonville
.
•' ;
,
*
CARROLL, LAWRENCE B.
Burke <fc MacDonald, Kansas City
CARROLL, LEE
Federal Funds
W.*
Lee W. Carroll & Co., Newark v * ''
CARTER, Jr., Frank E.
.
\
and its
Agencies
V.
State, Municipal, Revenue and Housing Securities
*
.
DOUGLAS*
A. C. Allyn & Co., Chicago
CASEY, Jr., JAMES ».
A. C. Allyn & Co., New York
CATE, HENRY*
The Keystone Company, Boston
CIIAMBKRLAIN, MELVILLE P.*
Chemical Corn Exchange Bank,
Municipal, State and Revenue Bonds*
New York
Bonds, Preferred and Common Stocks of Industrial,
Public Utility and Railroad Corporations
Fulton
Reid
New
1
MICHAEL
of Stock
*
Preferred and Common Stocks
Exchange Firms,
*
A.
Chisholm
Varnedoe.
CHRISTIE,
HI,
&
*
Co., Savannah
ROBERT
E.*
Dillon, Read & Co., New York
Bankers' Acceptances
CHRISTOPHEL,
Securities of the International Bank for
CHRYSLER, K.
ARTHUR
A.
i
Reinholdt A Gardner, St. Louis
Canadian Bonds
•
CLAFLIN, HI, WILLIAM IL*
Tucker, Anthony A R. L. Day, Boston
Foreign Dollar Bonds
CLAPP, Jr.,
R.
W.
CLARK,
Underwriter
Distributor
•
Philadelphia
Bostox
Pittsburgh
♦
Dealer
Sax Francisco
"
"
MEMBERS
Pressprich A Co., New York
Jr.,
NEW
DICK
C.
Wainwright A Co., Boston
,
YORK
115 Broadway,
STOCK
STOCK
AMERICAN
Securities Company, Dallas
CLARK, FORRESTER A.
Chicago
Cleveland
Established 1892
JOHN J.*
Dallas Union
H.
New York
MABON & CO.
MACK
U. S. News A World Report, Washington
Reconstruction and Development
New York 6
*
EXCHANGE
'
EXCHANGE
•
Telephone REctor 2-282#
CLARK,HAROLD W.
"*
*
*
*
York
CHISUOLM, FRANK
Casualty, Fire and Life Insurance Company Stocks
-
Cleveland
Co.,
&
CHARTERS, R.
*
Listed and Unlisted
CHAPMAN, R. C.
Association
Bank Stocks
*
*
York
CASEY,
Securities of the United States Government
*
-
Equitable Securities Corporation,
New
*!
Convertible and Foreign Bonds
.
CARR, FRANK C.*
Clark, Landstreet A Kirkpatrick,
Bell
Nashville
System Teletype NY 1-2152
CLARK, JOHN C.
Wachovia Bank & Trust Co.,
Winston-Salem
'*
★
★
★
★
«8
The Commercial and Financial
(2554)
Continued,
and
from page 27
expectatiQns for 20
the
future.
forecast
he
reach
predicted
about
dollars
Product
about
or
2%
America
five times what it
tion in world
the
that
capacity of 665 million kw. nearly
his
for
of last year.
would
trillion
$1
into
years
basis
a
National
Gross
Report oi IBA Public
Se entities Committee
As
in
times
amount invested
last
Preferred Stocks-Yields
Group I- 4.73%
Group II
4.81 7
4.97%
5.04
5.29
4.69
_
trial kilowatt hour sales
Common Stocks-Yields
5.41%
5.45
5.72
Group 1- 4.37%
Group 11- 4.43
Group III 4.60
in the
6.1%
4.86%
4.93
business
5.22
revenue
Electric Utility commons
close to 4x/2%
and in both
period, the de¬
as great as for
general.
Industrial
declined only 2.0% how¬
industrial
The
users.
industry
/
has
effec¬
tively controlled costs, the two
of
those
largest items being labor and fuel.
investor interest, have
increased
Again, the industry is unusual in
their dividends. This again proves
that the labor factor represents
1957 and 1958
approximately 15%
having any significant
the ability of this group ndt only
to maintain but. to
increase its
ing
as
much
as
;
less
than
20%
of
very
total
sales
increased
enues
vir¬
;
gross rev¬
4.0%
the
over
the
of
Edison
period of 1957 and net in¬
marized
increased about 7.5%.
This
the electric power
that
past
the
Ended
part
due
to
the
fact
>
Dec.
31,
31,
31,
31,
Dec.
Dec.
Dec.
Installed Generating
Capacity at Period End
136,192,000
125,753,959
118,010,526
;
.
589,452,837 *
518,363,951 '
471,686.354
291,099,543
164,787,878 "7
*
1949.
1941_
1929.
110,029,299
102,592,410
63,100,334
42,405,436
29,839,459
*
92,180,273
Laurence M. Marks & Co.,
Edward J. Costigan, Jr.
Edward D. Jones & Co.,
St. Louis
;
Carl II. Doerge
Wm. J. Mercika & Co., Inc.,
Cleveland
Thomas B. Gannett
Hornblower & Weeks, Boston
Ronald Gill
W.
G. H. Walker &
Albert
H.
Co., Providence
Gordon
Kidder, Peabody & Co.,
Electric
Power
Statistics, Federal Power Commission.
New York
Telephone Industry/
Telephones Installed
Year End
1957
:
thousands)
-
___
1954
1.946__
;
Dallas
Union
Co.,
Securities
-
James M. Howe
45,044
34,776
26,900
7
6,086
4,825
____
&
B. Franklin Houston
54,241
51,344
48,029
7,996
~
1949—
>
du Pont
Lynchburg
.Bell System
9,617
9,112
8,461
-
1956_
1955__—
<
(in
Francis I.
Independents
Hudson B. Lemkau
Company, Dallas
Farwell, Chapman & Co.,
Chicago
Morgan Stanley & Co.,
Operating Revenues
(in
thousands
of
Independents
sum¬
\
_
1955_
the demands
1949
.
" 286,572
Plant
Investment
(in 'thousand#
•
of
Bell
$2,760,215
2,323,052
2,042,322
1,795,029
V961,199/
655,878
1956
—_
1954__l:__
1949—
:___
1946
SOURCE:
Statistics
dustry—United
the
of
E.
Loftus
Hutton
M.
&
Co.,
«.
,.7
.
,
McCUrdy
Thayer, Baker & Co.,
•<
Philadelphia
System
George L. Nye
Smith, Barney & Co., New York
Robert
The
,
.
II.
O'Keef
Marshall
Company,
Milwaukee
,,
John W. Pancoast
•'
Dewar,
Robertson
San Antonio ;
Telephone
Telephone
Incorporated,
.
Philadelphia
Wallace
17,556,590
.15,799,247
14,567,746
9,726,535
6,440,847
Independent
States 'Independent
W.
$19,681,340
:
1955
Edgar J.
dollars)
Independents
1957.
STATE, GENERAL MARKET AND PUBLIC REVENUE
New York
5,425,442
4,907,481
'2,970,690
2,157,917
'201,170
-Year End
Distributors
;
.
A. G. Becker & Co.
5,966,190
526,109
•
New York
Milton F. Lewis
$6,467,583
596,030
:
_
1954
dollars)
•*," Bell System A
1957
$722,873
1956-—648,222
of
1946—
•
:
C. Brown
Edwin B. Horner
,
Underwriters
Inc.,
New York
Carl
(kwh)
V
624,302,252
1954.
SOURCE:
industry in the'
and projected
%
Elwood D. Boynton
C. F. Childs and
Company,
been
approach, and which, in
has/ brought leadership to
632,825,000
Aug. 31, 1955.
-
in
has
system
:
Corporation, New York
to
(Thous. kwh)
.
Year End
accomplishments
Corporation, Savannah
1
Institute
McAfee, retiring President,
same
is
other
no
COMMITTEE
William N. Bannard, 3rd
American Securities
prise system, the kind of achieve¬
ment
UTILITY SECURITIES
Thomas M. Johnson, Chairman
:
The Johnson, Lane, Space
glory of the American free enter¬
Electric Production
Aug. 31, 1958.
Aug. 31, 1957.
Aug. 31, 1956.
revenues.
Electric
the
':
This is
big job that is the
a
Utility Industry
n Months
held last June in Boston, Mr. J. W.
come
-
of
na¬
New York
Electric
Increases
in
wages
amounting to an average of about
5% are equivalent to only about
5%-7% dur¬
remained
the flesh-and-
any
.'V
.
.
add
Respectfully submitted,
These forecasts present
kind
of three trillion kwh. in able
This will require generating 'fact,
.
hour
the
doubling of sales every nine
and will reach an annual
1979.
are
to
the
PUBLIC
exhilerating prospect.
an
output
recession period.
This is an outstanding perform¬
1% of annual revenues. Continued
ance when compared with sharp
.installation of larger, more ef-.
declines experienced by many in¬
ficient generating units has aided
dustries.
While
total
industrial
in fuel costs; also, coal prices havej
production averaged 10.5% lower tended to stabilize
and, of late,
during the first half of 1958 vs. even weaken somewhat.
the same period a year ago, kilo¬
At the 26th annual convention
watt
presented
come.
history
needless
challenge is no less ours in
investment banking business!
com¬
Yearly
a
tually unchanged. Yet,
ures
to
beyond that of
that
blood of exciting accomplishments
years,
same
in
due to the cushion provided
by minimum monthly charges to
on
earnings
a
in electric
plant will then have reached
figure of $221 billion or nearly
six
times the $38 V2
billion in¬
vested at the end of last year. He
pointed out that.. ."In the dry fig¬
is
a
declined
ever,
It will be noted that the average
was
to
cline has not been
Prepared by Irving Trust Co.
yield
continued
increase; for the 12 months ended
June, there were 3,290 kwh. vs.
3,063 a year earlier. While indus¬
4.42%
4.46
Group III 4.97
customer
It
pany
residential and commercial rev¬
will total more than
enue segments have continued to households
each of the last three years.
1958
grow at almost the historical rate. 82 million,
1957
1 956
an
increase of twoIn the first six months, residential thirds
during the two decades. In
Bonds-Yields to Maturity
,sales increased 9.3% and commer¬ order to keep pace, the industry
Triple A_ 4.17% ' 4.30%
3.66%
cial
sales
5.4%.
Also, average will need an annual increase in
Double A 4.27
4.40
3.76
annual
kilowatt hour sales per its rate of growth of some 8%. or
A
4.45
4.63
4.06
residential
at the end
was
After taking inflation
account, he believes that the
into
1957
year's total.
Population
is ex7
'pected to be in the neighborhood
of $250 million in this country or
nearly 50% above the present and
utilities securities as of Oct. 31 in
Chronicle..... Thursday, December 18, 1958
In¬
&
Pancoast,
;
James M. Powell
Association.
Boettcher and Company, Denver
Electric
DIRECT WIRE TO
CHICAGO, MIAMI, BOSTON, SEATTLE
Securities
Utility Industry
Sold
Albert E. Schwabacher, Jr.
./
Schwabacher & Co.,
San Francisco" ;
(thousands of dollars)
Long-term Debt
'
.
t
7
"
9 Mos. to
*
9/39/C8
Publicly
Subscription
Privately
9 Mos. to
:■ ">
$1,463,000
19,700
1".
—_
.90,393
Affiliated
•
Telephone: HAnover 2-9353
with:( H,LL' ^Arlington & do.
(. Members N. Y. Stock
CHICAGO
MIAMI
Exchange
BOSTON
$661,500
59,779
27,500
$592,500
,"150,950
'
$1,535,502
$1,573,093
STREET, NEW YORK 5, N, Y.
$748,779
/i
$192,500
27,283
12,100
SEATTLE
7
$134,265 4
•'
32,836 •'
10,600
j 1,639
$60,696
$177,701
$156,418
$120,856
291,524
Eastman
$63,362
$90,660
140,440
—
141,254
[ ,i
,
j
-
Co., Inc., New York
Dillion, Union
.
Co., New York
\;
j
I
Long Inv. Branch
MANHATTAN, Kans. — Long
Investment Company has opened
branch
a
$61,125
133,886
^
G. A. Saxton & Co., Inc.,
New York
/
Harold H. Young
$112,425
23,243
20,750
Common Stock
Publicly
Subscription
&
.
Stolle*
Securities &
'
;
Carle
■
$59,057
/
$231,883
37,737,
67,150
t
Smith
Raymond
Weeden
$697,387
•' r
Preferred Stock
Publicly
Subscription
Privately
J.
9/30/55
■161,052
.
-•
WALL
9/30/56
$1,283,500
"
______
40
9 Mos. to
9/SO/57
'
9 Mos. to
■
-
office
at
110
South
Fourth Street under the direction
of
Harry J. McLaughlin.
"
For Banks9 Brokers and Dealers
Total Financing
Total
FOREIGN
New
$195,011
$1,999,987
$1,898,087
—
Money
Ebasco
SOURCE:
Services,
\
New York Stock
120
American Stock Exchange
Broadway^
WOrth 4-5300
Teletype NY 1-2525
New York 5, N. Y.
Total
Period
Revenues
>
-
.
.
.
Construction
;
.
1958
of
(Thousands)
$1,868 (est.)
1,932
v
2
Jr.
1,462
24,953
Associates,
Building.
22,267
"
1956
Private
Teletype
to
London, England
Joins
1955
'
1954
$1,142,624
$946,557
$1,861,595
162,189
258,930
192,043
182,151
274,153
$2,420,826
$1,583,705
$1,412,753
"Gas
Facts"
and
Quarterly
Report
American
Gas
$2,431,262
Association.
Camp & Co.
Neault
is
now
—
Lawrence
with Camp &
With E. F. Hinckle Co.
(Special to The Financial Chronicl?)
PORTLAND, Oreg.—Vernon E.
Paulsen is now affiliated with E.
F.
SOURCE:
Johnston
Co., U. S! National Bank Bldg.
242,082
.
Inc.,
PORTLAND, Oreg.
M.
327,585
293,798
Total
now
(Special to The Financial Chronicle)
$1,736 million
$1,964,839
Paris; 370 Rue St. Honore
are
ling
Expenditures
Preferred Stocks—
-
connected with Ster¬
27.954
27,528
1959
1957
.
Insur-'
(Special to The Financial Chronicle)
799
}
.
&
CHARLOTTE, N. C.—Theron T.
Kinzie and Joseph B.
Simpson,
1,055
1,345
■
Loan
Building, under the
Two With Sterling Assoc. 1
Operating and Holding Companies Securities Sold (in thousands of dollars)
•
Elkin
39,879
29,988
29,190
1,628
Construction
$1,868 million
the
Service
management of Jack Underdown.'
Customers
Common Stocks—
Mooregate, London, E. C.
in
,
Expenditures
(Millions)
$6,859
6,115
5,750
4,901
3,052
2,228 '
1,565
Forecast
Gas
.
"-.
(Millions)
"
30, 1958
June 30, 1957——
June 30> 1956
June 30,. 1955
Dec. 31, 1954
'
Dec. 31, 1951___— j
Debt Issues
London: Nortligale
House,
20-24
Morrison Co. Office
ELKIN, N. C. — Morrison &
Company has opened a branch of¬
fice
Utility and Pipeline Industry
1940-46 average
Members
Exchange
$231,100
$1,084,905
$952,407
$1,127,000
Incorporated.
'
.
12 Months
June
MODEL, ROLAND & STONE
$204,616
$1,131,096
ance
Gas
SECURITIES
$412,380
^2,0Q8,578
$1,985,768
Hinkle
Building.
&
Co., Inc., Equitable
Volume 188
Number 5804
.
.
i
The Commercial and Financial Chronicle
.
'
■'•"•ifi-v- '
*
(2555)" 39
Continued
jrom
in
21
page
the
of
records
the Commission.
attention
'not' to
"Gno-Jnmpiag Problems
Court
the
It deserves
a
do.
Under Section 5"
Mr.
case
Arthur
Vining
Davis,
the
of
SEC
some
to
administer
ers
in securities as to Whldi a
constitute registration statement
had been
the freedom* filed for one
year after? ttie^ ef¬
is an idibfic fective date
of the registration
way
on
pressThis
which would
conceived
a
substance and very
some
the
infringement
an
remark
of
man
of
this statute in
study in what
Essentially, it is as
as
follows:
'.
efforts
and
some
by
the plain words of the
be
never
who
one
had
read
law, or
was
.widely
and
favorably
known, familiar with the express intent
formed a corporation last summer of Congress in enacting it or with
galled Arvida Corporation to the history which lies behind it.
close its advertising department, dfunregisteredsecurities.ri again
'which he transferred some large What the press may choose to
dismiss its public relations people refer
you
to the statement of fracts
of
Florida
real
estate publish with reference to finan¬
and" gag
its officials and
emJudge Burns in Release No. 464, .which he had
accumulated
This cial affairs, whether, fact or fancy
ployees. Certainly, an issuer may although this release as well as action was described in a
press fiction, is none of our business.
continue the normal conduct of ;, the others to which. I referred
release published in some Florida Most financial and other corpo¬
its business and it may continue must be read in the context unpapers
on
July 8, 1958
which rate information, at least that
its normal publications prior to
der which they were issued, The
simply announced the formation concerning most established en¬
the filing of a registration state- problem has never been answered
an(j purpose of the Corporation, terprises, can be gathered from
ment
and
even
during the so- .more logically.
- 9 c
Thereafter, negotiations with vari- open and public sources. More¬
called
."waiting
or- cooling
off The question of when such an ous financial concerns
culminated over, it is no matter of concern
period."
Thus, it may continue organization
becomes > involved fn an
understanding arrived at on to us if the financial press chooses
to publish advertisements of its :in the sale of a ; new issue and
Sept. 18 of this year whereunder to • publish^ any of the rumors
products and services without in- should therefore stop and analyze certain
outstanding Wall Street which, some true, some false, are
terruption. It may send out its its program of financial analysis house agreed to underwrite
as
a
indigenous to and prevasive
annual and other periodic reports
for the time being does not seem public offering of Arvida common in Wall Street as is the odor
of
to its security holders.
It may to us to be particularly baffling stock.
Thereupon, another press roasting coffee. All that the law
publish its proxy statements, send ; or complex. We think that, or- release was
given out and a press says is that no issuer, or under¬
out its dividend notices, and make
dinarily, a dealer is' not required conference
held, as the result of writer may be a party to any
routine, announcements
for
the
to pay much attention to the fiwhich wide publicity was given
publicity campaign in connection
public press, i:. The f SEC' does -hot a nancing plans; of.* an" issuer- until pot only to the
plans and proi- .with a forthcoming, but unreg¬
normally. regard these; activities, he offers to or is invited ; to be- fects of the
Corporation but to the istered, issue of securities. That
ai any of its business. But when,* come a * member • of • the
selling gontemplated
public sale of the Jaw we intend to enforce.
on the other hand, public, state- .-group.
Neither -ho webelieve it issue
by the "underwriters pursue
The SEC has for some time been
ments of various sorts begin to ido be necessary for an investment
ant to their "agreement.
This re¬ aware of the
pressure which has
appear shortly before the filing of - banker to withdraw-his existing )ease reads
precisely like a letter been brought to bear on issuers
a !*• registration- statement
which analyses or '.refrain'from
/.
bring
,
_
to ..market
issue
an
,
,
,,
.
..
gaged at the
must
time
same
xi-
i
the sale
in
,
'
.
tissuing
discuss such aspects of,
a
its
dactive
fashion
issue of securities of a'given
favbrable* pany. "
the
which
^ prospective purchaser in
The ; syndicate" managers
fort
the reader to send in his order,
must, we^ think, .be a little more
careful, since they may be involved in the selling effort as
be confused by such an approach
to this question, or why the in-
and
in
are
violation
soon
Le
see
the
of
law.
thp
the
that, in spite of pur. repeated efforts to clarify our understanding
of the effect which the
of
Section
5
doubts
as
have upon
to whether
such
Arvida
matter
questions in
as
raised
never
this regard,
so
any
such
reports
is
not
The
case.
r oh a s
in^^fnd
peared,
in
so
far
as
the
release
broker-dealers
such
All
rigidity of the limi¬
pre-effective offers,
sent
"exures-
we
felt that the trade should
than
the
of
prospectus had
a
given to the pur¬
Among other things, this
amendment, to which the Com¬
or
chaser.
mission
agreed, made it possible
for dealers to send out their
literature
concerning
awn
registered
securities to their customers upon
the
expiration of 40 days after
the effective date without
worrying about the delivery of a statu¬
tory? prospectus, - provided.1 the
dealer
not
was
disposing of
or was
In
{;
then
an
engaged" in
unsold
not otherwise
allotment
participating
incompleted distribution,
an
The
Commission
continues
changes
to
believed
believe
that
r
and
these
in
the law to legalize
sales activities immediately after
the
filing of
registration state¬
a
ment and to permit a greater free¬
dom with respect to sales litera¬
ture
after
distribution
a
has
in
fact been completed or lias pre¬
sumed to* be completed were a
realistic and sensible recognition
of the need for
compatible
facts
of
were
not
statutory changes
with
life,
-
the
The
economic
amendments
intended to and
do not
in fact change the fundamental
principle of the law that sales
efforts
must
not
be
started
be¬
fore
filing of the required facta.
Nor
did
the
amendments
change
the fundamental principle of the
law
that
an
have
Eta
other
underwriters.
dealer
or
issuer,
may.
underwriter
not do indirectly
relatively little trouble com¬
plying with the amended Act. It
what he is prohibited from doing
also
directly.
was
amended
to
relieve the
industry of the limitations of Sec¬
tion .4(1)
which had the effect of
the
We do not believe that
ability of
secure
or
a
seller to seek out
publicity free of charge
Continued
transactions by deal¬
on
page
40
the
indicia
of the
beginning of a distribution
by security houses country-wide
were
present
which' ' normally
follow the filing of a registration
statement.
The important point is
that
registration statement had
no
been
filedj an„ ihat the SEC had
been
that
almost
certain details.
whole story, however,
en-
and
the
upon
s ^0 n so ^ interest" totalling over prohibiting
$50°>000 had been received by
Case
facts
familiar to
are
of you in
long
the organization which is pub¬
lishing
f t h e°irm
after
the clearest example
of an attempt by an issuer and its
underwriters to make an offer in
contravention
of
the
statute is
the
recent
and well publicized
that
have
en
Refers to Arvida
ing the customary analyses of out¬
standing security issues. We have
said before, and I repeat here
we
"expressions
to
S
investigation rer
that, in two business days
-veaiC(}
Perhaps
underwriter is safe in publish-
artj|L
this
,
to relax
tations
anvone
research
ac¬
distributor
a
leason
provisions
tivities, there still remain serious
or
^
nf
departments of an
an
underwriter should not avoid the
slightest problem.
us
tiY*««
TAibvUomi,r
as^commem^to megoor two o^ wWch were? re":
relsmi whv anyone should -vealingly enouSh. entered on buy
wny
sy°ulf* or(ger forrns. Our
no
t loi^bfdwe
Analyses of Security Issues
It has also been indicated to
ef-
an
fort to persuade him to invest
the enterprise. The only
coin-
the unfavorable,•• I think it
logical "to conclude that there
is an attempt to condition the
marwet
market f„r the fortheomine sale
for the forthcoming sale
of the issue, and that such state¬
ments are a part of the selling ef¬
over
Is
distributor would send to
a
and
underwriters
to
publicize
coming issues. For many years,
in
however, the bankers manfully
thing it resisted this pressure.
The law
;does licit' do is specifically to ask
was
materially amended in 1954
business ^new-ones until he has received
1 indication that he is going to participate as an underwriter in an
finances, its earnings or its
growth prospects in glowing and
optimistic terms,, stressing 'in seas
statement unless
been
which
all
given
the
must
lished facts
The
the opportunity
plainly states it
law
have
to ..review
*
1
;
•:
:.
'
•',
r
.
i
the
pub¬
the strengtn of
upon
which this public interest had
has not ap-
been
i know, except
the
aroused.
I
might
add
that
information contained in this
release and the whole tone there¬
of do not jibe in many respects
with the content of the registra¬
NATIONAL
tion
statement
which
filed
DISTRIBUTION
and
prospectus
subsequently
been
have
with
and
us
which
rently under study.
of
.
Judging the activities and
munications
the
Corporate and Municipal Bonds
I
cur¬
have
com¬
described
in
light of all the circumstances
surrounding
out
Preferred and Common Shares
are
•;
the publicity given
the issuer and its under¬
by
writers
in light of the pro¬
employed by the secu¬
industry
in
distributing
and
cedures
rities
securities
and
industry in
distribution,
the
effect
of
in
their function
it
*tN$URANCi
the
the
is the
jconsidered opinion of the Com¬
mission that an offer of a security
or a solicitation of an offer to
buy
within the meaning of the statute
had been made. Certainly, in any
view, the activities involved here
related
directly to a desire to
promote an awakening and de¬
veloping of a buying interest on
the. part of the public in a secu¬
•
and
was,
the
Arvida
case
permitted,' it would be
issuers
Brokers
*
Underwriters
Distributors
'
'
Dealers
case
and
to
to
be
proper
underwriters
?.'?}
• BANK
•RAILROAD
'/
■
I- 'h
■■■*
•
15,000 Miles Exclusive Private Wires
E.
F.
•
Important Centers
54 Years of Investment Experience
HUTTON
Members New York Stock
61
34 Offices In
create
a
demand
&
COMPANY
Exchange & All Principal Stock & Commodity Exchanges
revealed
proper form to the
public.
This result would obvi¬
ously be contrary to and defeat
one
and
Broadway, New York 6, New York
of the fundamental
objectives
of
the
principles
Securities
Act.
LOS ANGELES
•
SAN
DALLAS
FRANCISCO
•
NEW
•
CHICAGO
ORLEANS
•
•
KANSAS
.
'
.
'
of Wall Street's major trading firms
a
our
us
UO
will
your traf
yuui
tl
best
to meet
them.
Stalker, Manager, Dealer
Rel|iii|ns ^
Wm
MM
22 offices coast to
ifciWm
I
MM
H!
Kidder, Peabwy & Co.
FOUNDED
II
JMembers Tiew York and cAmerhrm Stock
WMM
JMembers "Boston and JMidwe#
CITY
No
ATLANTA
I
have
Press
seen
ments from
we
n*advJill
botid^f:fi
Tell
do
were
in
one
and
WMM
any
for a
its sale before the true facts
As
"
in
security and in effect accomplish
400 Active Account Executives
'■-mm
•NATURAL G*$ TRANSMISSION
for
were
"NDUSTR,A%'
stocks
paivwiva
rity. We believe that this was the
•beginning of a sales effort. If, in
fact, activity such as was involved,
in
public!
Exchanges
Spick Exchanges
Censorship
and
heard
state¬
time to time that the
17 Wall Street
mmi
mm
New York 5,
N. Y.
t
1
40
(2556)
The Commercial and Financial Chronicle
Conformed
from
page
business.
39
more
"Gun-Jumping Problems
whether
before/or after the fil¬ provisions of Section 5, the Com¬
ing date which if paid for would mission determined to, and did
clearly violate the law, changes issue its Release 3844 in October
the character or effect of his ac¬ of last year, in which we at¬
tion in terms of the provisions of tempted to remind the trade of
the Securities Act.
the serious nature of this problem.
We have since seized every oppor¬
Cites Large Issue of 1954
tunity which has presented itself
Shortly after the adoption of the
amendments, however, a very
large and newsworthy issue was
do
placed
less.
to reiterate this
warning. We can
nothing more, as I see it, nor
most certainly can we do anything
1954
the
on
series of
serious
issue
to
was
interest
a
publicity releases which
gave us very
result
marketv after
to
was
whip up public
point where the
the
to all
intents and pur¬
poses
completely
filed.
There
sold and, in
fact, greatly oversold long before
any
registration statement was
is
indication
every
that the negotiations with respect
to the contemplated issue
price
were
materially affected by the
indicated
demand
which
had
to
enough
a
little
thought
avoid such
more
at
:
function
of
the
extent
to
which
corporate financial and related in¬
in part been stimulated
observer,
to
a troubling resemblance
the classic pattern of
security
distributions
the
late
they developed in
1920s.
In
questioning
as
tion
of
by
the
new
prospectus had been the first step
to
now
reason
any
complain of
whether the stock could have been
sold at the offering price if the
in
had
never
to
the
a
seriously
lack of coopera¬
respectable
element
selling campaign, I may
point out that the market for the
stock
industry. I ask
for the industry to take a
and dispassionate approach
this
enough to do to protect the inves¬
dications
dustry
that
was
nonchalant
situation, and
the
securities
slipping into
attitude
a
in¬
minute which
rather
spend
we
are
Admit R. L.
Kaehler, center, San Francisco, President of the
Division, Pacific Coast Stock Exchange; Ernest
Hart, left, San Jose, President, Food Machinery and Chemical
Corporation, and Jesse Tapp, right, Los Angeles, Chairman of the
Board, Bank of America, shown with the Award for Industrial
Partnership in Modern Agriculture presented to the Pacific Coast
Stock Exchange by the Central Valley Empire Association at the
National Salute to Agribusiness in Fresno, Dec. 3. Mr. Tapp was the
principal speaker at the dinner. The purpose of the Salute was to
call attention to the fact that modern mechanized and chemical-
mill
L. Speight will be¬
partner in Shearson, Ham-
&
Co., 14 Wall Street, New
York
City, members of the New
York Stock Exchange, on Jan. 1.
Asiei &
required to
in
Asiel
New
&
Associates.
merly with Ira Haupt & Co.
in
Exchange, on
Jacoby,
Dec. 31 will admit D. Paul
Richard L. MayeY and William H.
House to partnership. -
Halle
5 2
&
Corporate and Mumcipal Securities
Stieglitz
WALL
William Blair & Co.
STREET
To Admit Bruce Thorne
NEW YORK 5, N. Y.
CHICAGO, 111.
—
.
i
:
Member» New
MEMBERS
TELEPHONE
YORK
AMERICAN
EXCHANGE
HANOVER 2-9050
YORK
CHICAGO
COTTON
BOARD
EXCHANGE
ADDRESS
"PEACEABLE, N, Y."
OF TRADE
BRANCH OFFICE
COMMODITY
of
Stock
the
EXCHANGE,
INC.
Thorne
the
has
York
and
Exchanges.
York Stock Exchange and Other Exchangee
25 BROAD
STREET, NEW YORK 4, N. Y.
Teletype: N.Y. 1*210
Telephone: HAnover 2-0600
Mr.
with
in
firm
New
been associated
EXCHANGE
CABLE
NEW
members
Midwest
STOCK
STOCK
partnership in William Blair &
Company, 135 South La Salle St.,
CO,
&
HIRSCH
On Jan. 1
Bruce Thorne will be admitted to
NEW
;
Underwriters, Distributors and Dealers
Co., 20 Broad Street,
City, members of the
Stock
the
WASHINGTON
Buying Depart¬
ment.
FORT PIERCE
MIAMI BEACH
BALTIMORE
PALM BEACH
GENEVA
LONDON
LAKE WORTH
NEWARK, N. J.
AMSTERDAM
Correepondente: HAVANA, CUBA
Clark, Dodge & Co.
Direct Wire Service:
New York
To Admit Partner
Washington
Miami Beach
Baltimore
Palm Beach
Lake Worth
Fort Pierce
Clark, Dodge & Co., 61 Wall St.,
City, members of the
York
Stock Exchange, on
New York
New
Jan.
will
1
Combe of
Established 1850
The New York Stock
MIAMI BEACH
PARIS, f RANCE
SAO
CORAL GABLES
ODESSA, TEXAS
GENEVA, SWITZERLAND
Railroad
Securities, Municipal Bonds
Maurice J. Cohn will retire from
partnership in Andrews, Posner &
Rothschild Dec. 31.
Sherry Motherland Hotel (PL 1-2220) fc 1430
Broadway (PE 6-5T75)
PITTSBURGH
Industrial, Public Utility and
Exchange,
following firm
changes:
New York City Branches
BEVERLY HILLS, CAL.
UNDERWRITERS and DISTRIBUTORS
has announced the
commodity exchangee
72 WALL ST., N. Y.
C.f BO 9-8420
DETROIT
P.
partnership
Exchange
Weekly Firm Changes
Main Office
CHICAGO
Edmund
New York Stock
Membere New York Stock
Exchange and other
and
to
in the firm.
h.hentz & co.
leading stock
admit
London
HOLLYWOOD, FLA.
MIDLAND, TEXAS
AMSTERDAM, HOLLAND
BUENOS AIRES, ARGENTINA
PAULO, BRAZIL
*
Laurence S. Johnson will with¬
draw
bach,
Bank and Insurance Stocks
Unlisted Securities
from
partnership in AuerPoilak & Richardson, De¬
cember 31.
Lester Santly
will retire from
partnership in Felder &
.Co., Dec. 23.
limited
Peter
F.
D.
Elser
will
Ljurd, Bissell & Meeds
retire
Members New York and
American Stock Exchanges
from partnership in G. C. Haas &
120
Co., Dec. 31.
Underwriters and Distributors
of
Corporate Securities
Clinton G. Hough will withdraw
Shaskan Bros, will be dissolved
Dec. 31.
Zock, Shields & Co. will be dis¬
solved Dec. 3R
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
from
partnership in Long &
Meaney, Dec. 31.
■
1
,
Patrick Clements Opens
Company To
York
;
HOLLYWOOD, Calif. — Patrick
PASSAIC, N. J.—Thaddeus A.
Barszcz is engaging in a securities H. Clements is engaging in a secu¬
rities business from offices at 6715
business from offices at 663 Main
Avenue under the firm name of Hollywood Boulevard under, the
Barsh & Co. Mr. Barszcz was for¬ firm name of Patrick Clements &
Admit New Partners
New York
*
,
of industry's biggest customers.
"Forms Barsh Co.
Speight
Randolph
come a
guarding them against
the "gun-jumping" by legitimate
toward
E.
Francisco
Shearson, Hammill Go.
tors in America against chicanery
and fraud, and we begrudge every
a
recent in¬
more
national economy.
our
Ronald
San
ized agriculture is one
serious
shortly after free trading self within the limits established
dropped below the by law to the
public issue and
offering price and, as I remember sale of securities. The SEC has
it, has never been uo there since.
In view of this
strength of
securities
commenced
number of other
to this end, we will have made a
notable contribution to the lasting
problem, to con¬
sider the duties imposed on us by
the Congress and to restrain it¬
the
Partnership in Modern Agriculture
.
the flow
of
the purposes of the law and to dite
capital from
by make sure that such publicity does American investors to American
this publicity. In short, the situ¬
not become mixed up with a secu¬ industry. If the SEC and the in¬
ation generally bore, to a detached
rities sales campaign. The SEC has vestment bankers can cooperate
least
Industrial
problems.
In closing, permit me to express
appreciation for the oppor¬
tunity to discuss with you some
of our problems.
Many factors
contribute to making our system
of
free
enterprise work.
The
ability of industry to grow and
prosper depends upon its ability
of obtain capital. Access to capi¬
tal, in turn, is dependent to a
large extent upon the confidence
which the investing public has in
securities as a safe and profitable
place to invest its savings. This
confidence is in large measure a
From the very nature of the formation is disclosed to investors.
statute,
which
attributes
very Our job ris to extend and pre¬
great importance to the subjective serve this confidence,
and our
intent of the parties, it is com¬ only reservation is due
to the
limited prohibitions of a carefully
pletely impossible to lay down
hard and fast rules for general drawn and purposeful statute de¬
application to this question.
I signed to see that the information
would like to say again that there so disclosed is actually fair, accu¬
is ample room for legitimate cor¬ rate and complete.
We believe
porate publicity under the law, our interests and yours are iden¬
but that it is the duty of the bank¬ tical, and that one of our primary
ers
and issuers to keep in mind purposes is to help you to expe¬
The
concern.
be
little
a
Thursday, December 18,1958
my
Under Section 5"
,
We believe that
care,
would
...
DuPont
44
Bldg., Wilmington, Del.
/
.
Bell Teletype NY 1-1248-49
Phila. Nat'l Bank Bidg., Philadelphia, Pa.
Whitney Ave., New Haven, Genu.
II Waldmannstrasse, Zurich, Switzerland
160 W. Broadway, Sale*, N. J.
22S S. State St., Dever, Del.
Volume
Number 5804
188
Continued
from
.
.
.
The Commercial and Financial Chronicle
Voluntary Imports Plan by Oct.
35
About
13.
page
since
$
gram, of necessity, must be flex¬
ible. A review of the original pro¬
gram established in July 1957, the
changes effected in 1958, and those
;
refinery capacity will be granted
allocations equal to 6% of such
are
Those whose allocations
greater than 37^ % of reported
now under consideration indicate
refining capacity will be reduced
a degree of flexibility.
;
•
:
From an to that level;
point
of
view,
these
revisions in the program must be
-followed carefully since each car¬
ries certain implications for par¬
ticular companies.
(
capacity.
with the
to
9%.
-
.
highest percentage allo¬
progressively re¬
to
in
response
suggestions
to
from
members of the petroleum indus¬
try that allocations of imports be
related
to
9%.
/'.v
Jan.
1,
1
1960
months thereafter
tions
of
all
'
each
six
and
The
—
;
alloca¬
sued
bears
to
pipelines
capacity, the total of industry refinery runs for
Voluntary the year ending
three months
Import
Program,
Captain prior to the effective date of the
Matthew V. Carson, Jr., advanced allocation.
For example, if the
a new program for import control
allowable level of total imports
on Sept. 10, 1958.
This suggested equalled 11.4% of
industry re-program
has
been
thoroughly
finepr runs, each refiner could
studied by the industry* and com¬ receive
11.4% of its refinery runs
pany
comments have been for- in an oil import allocation.
1 warded to the Administrator as
«
*
*
of
inet Committee.
The
to
newly proposed plan tends
turn
based
on
away
from
allocations
historical rates of crude
oil
imports and, instead, fixes al¬
locations in relationship to refin¬
ery capacity and runs. Under the
new tentative
plan, total crude im¬
ports are limited to 751,300 b/d,
which is 12% of domestic produc¬
tion. To this is added 75,000 b/d
the
Under
proposed
new
while
that
have
ity, would benefit.
companies
be
tentative plan
Pure,
be
'
under
which
the
MEMBERS: New York Stock Exchange
Chicago Board of Trade
•
•
New York Cotton Exchange .American Stock Exchange
.
„
and other principal Stock and Commodity Exchanges
•
COMMODITY BROKERS
UNLISTED TRADING DEPARTMENT
Industrial, Railroad, Public Utility Securities, Bank and
Insurance Stocks
CORPORATE BOND DEPARTMENT
Jamestown, N.Y.
Jersey City, N .J.
Louisville, Ky.
MUNICIPAL BOND DEPARTMENT
Miami, Fla.
State and
Niagara Falls, N.Y.1 '
Orlando, Fla.
Passaic, fU,
Paterson, N.J.
' •>
Pittsfield, Mass.
Rochester, N.Y.
T
Royal Oak, Mich.
St. Petersburg, Fla.
industry
and
Commission
front
in
the
Federal
presented
petitioning
a
the
Barly in Januray the Su¬
Court agreed to review the
court
decision
but
the petitions to hear the
the
preme
summer
denied
'
;
Flint. Mich.
!
t
Fort Lauderdale, Fla.
Worth, Texas
Houston, Texas
The
Su¬
on
Municipal Bonds
CANADIAN SECURITIES DEPARTMENT
Direct Wire to Montreal and Toronto
115
?
Broadway, New Ytrk 6 BArclay 7-0100 Bell Tele.: NY 1-671-672
Sarasota, Fla.
60 East 42mI Street, New Yerk 17 Murray Hill 2-6350:
Tampa, Fla.
Winter Park, Fla.
Wilkes-Barre, Pa.
In the
meantime, the Memphis
a serious impact
on
the natural gas transmission
industry, although some compa¬
Decision has had
Phillips,
nies
Shell, Standard (Indiana),
(New Jersey) Standard
have been much
more
seri¬
ously
some
cases
UNDERWRITERS AND DISTRIBUTORS
„
,
CORPORATE FINANCING
•
MUNICIPAL AND CORPORATE
SECURITIES
regulatory
allocations
are
less than 6% of individual
reported
quested
that
comments
be
sub¬
mitted to the Administrator of the
situation
with
respect
to
inde¬
•
pendent producers of natural gas.
PRIVATE PLACEMENTS
Van Alstyne, Noel&€o.
Members:
New York Stock
S
ervice
b asic analysis
M arket facilities
American Stock Exchange
Exchange
52 WALL STREET
373 SEVENTH AVENUE
NEW YORK 5, N. Y.
NEW YORK X, N. Y.
Philadelphia Office
Room 831, "Western
Singer, Bean & Mackie,
Saving Fund Building, Broad & Chestnut Streets
inc.
Established 1928
40
EXCHANGE PLACE
•
NEW YORK 5, N. Y.
We Offer a
COMPREHENSIVE INVESTMENT
HAnover 2-9000
NY 1-1825 & 1-4844
AND
DEALER SERVICE
in
FIRM TRADING MARKETS
ALL CLASSES
OF BONDS AND STOCKS
including
IN OVER 400 STOCKS
PUBLIC UTILITY—RAILROAD—INDUSTRIAL
FOREIGN ISSUES
We
are
Particularly Adapted to Service Firms
With Retail Distribution
Direct Wires
Evans MacCormack & Co., Los Angeles
Reynolds & Co., Philadelphia
Saunders, Stiver & Co., Cleveland
to
Your
Inquiries Solicited
Burton J. Vincent & Co., Chicago
Dallas Rupe & Son, Inc., Dallas
P. F.
FOX
Stone & Youngberg, San Francisco
120
,
New London, Conn.
Cable Address: Accurate
the end of the year.
Standard
,
Memphis, Tenn.
prior
case
recess.
Court heard argument
the appeal on Oct. 20 and 21 and
a decision, is now
expected before
this
i
Fort
affected than others.
In
financing plans (and
of other unfinished
ojls. Total per¬ (Ohio), Sunray Mid-Continent,
hence expansion programs) have,
missible
imports
aire therefore and Texas. The
import positions of necesity, been delayed. In other
fixed
at
826,300 b/d, which is
of Cities Service, Sinclair and So- cases
financing programs have
10.1%
of annual total
demand.
gone forward although the uncer¬
Present import allocations will re¬ cony
would not be materially
tainties arising from the decision
main in effect until Jan.
1, 1959. changed.
have acted as a hinderance to
Following that date, allocations
This plan was made available to market conditions.
under the proposed plan will be
all interested parties in the middle
The last year has brought forth
as follows:
September, and it was re¬ no clarification of the
Jan. 1, 1959 to June 30, 1959— of
Importers, whose
;
•.
Anderson, S. C.
Athens, Ga.
Atlanta, Ga.
Boston, Mass.
Bradenton, Fla,
Bradford, Pa.
Buffalo, N. Y.
Charlotte, N. C.
Chicago, 1(1.
Clearwater, Fla.
Cleveland, Ohio
Cocoa, Fla.
Coral Gables, Fla.
Dallas, Texas
Detroit, Mich.
STOCK, BOND and
the
applied
<
Branches in
'
Goodbody & Co.
gas
to
Commission
have
\
has witnessed
Continued on page 42
year
Direct Private Wires to Principal Cities
to
con¬
are
Continental,
last
is¬
lower
Atlantic, East¬
ern States,
Gulf, Standard of Cali¬
fornia, Sun and Tidewater. On the
other hand, the chief beneficiaries
would
Circuit
preme
plan,
allocations
under
The
■■■■■■■■■■■■■■■■■■a■■■■■■■■■■■*■■■■■■■■■■■■•■■»■■■■»■•■■■■■■«
"Memphis
upsetting the accepted
united
The principal
whose
reduced
ficult to find!
ESTABLISHED 1891
U. S. Supreme Court for immedi¬
ate review prior to its summer
siderable domestic refining capac¬
would
producer of nat¬
a
now-famous
Power
quotas of historical
would suffer most,
companies
a
line
import
importers
mission finds to be "fair." To
regulate natural gas producers on
a utility Tate base method la not
only unfeasible from- an adminis¬
Power
agreements with their customer
distribution companies. The pipe¬
recess.
the
Federal
Power
for
increased rates under their service
.
prior to the acceptance of a new
program by the President's Cab¬
as
"rate base" for
of
1957 the United
Appeals for the
of
Federal
the
Oil
requested.
Possible revisions of
the plan are now being studied
the
procedure
refinery
Administrator
of
the
ural gas or establishes an area for
a rate of return which the Com¬
industry.
Columbia
of
Decision"
the
21,
Court
District
importers will equal
allocations
Nov.
States
the percentage that the total of all
import
the various segments
On
;
result of many requests for
-additional import allocations and
deem it of in¬
the natural gas
duced in order to raise the others
The "Carson Plan"
a
we
accompanying views on the
impact of that "Decision"
on
cations will be
As
have elapsed
Detroit case
years
City
which
Commission is required to use a
so-called
rate base method
(at
Subse¬ least
terest, and for the record,
to
carry the Committee's
*
Those
three
the
under
NOTE:
However,
July 1, 1959 to Dec. 31, 1959—
Refiners with import quotas of
less than 9% of refinery runs for
the year ending March 31, 1958
will be increased
*
trative standpoint but contract to
"point of departure") the principles of free competitive
quent to the presentation of in determining the reasonableness enterprise. Amendatory legisla¬
of producers' rates which are sub¬ tion to -alleviate
the Committee's
this situation
report to
the Convention, the United ject to its jurisdiction. Despite made no progress in Congress this
last year. It is hoped that a bill
lengthy proceedings and the tak¬
States Supreme Court re¬
ing of much evidence, the FPC will be passed in the coming ses¬
versed the lower court's so- has yet to issue a decision which sion
although positive ' signs of
called "Memphis Decision " adopts a basis for determining a unified industry support are dif¬
EDITOR'S
Gas Securities Committee
investment
a
The Natural Gas Situation
Report oi IBA Oil andNatuial
41
£2557)
&
CO., INC.
BROADWAY, NEW YORK 5, N. Y.
Telephone
Teletypes
REctor 2-7760
NY 1-944 & NY 1-945
^
The Commercial and Financial Chronicle
Thursday, December 18,1958
...
(2558)
42
industry's reg¬
toward solving the
Continued jrom page
41
Reput «< iba 03 and Natural
Gas Securities Committee
some
violent swings in the money-
'.and most * of' these
requirements
At
witness
In
new
expenditures
time, demand for
United States
in the
faster
to, grow
petroleum., reaching levels of
than
within ten
17.2 trillion cubic feet
' on
This will represent about
of all energy-consumed in
facilities in 1958 will set
gas
same
gas
continue
are
that
estimates
the
years.
all-time record of $1.9 billion. ■25%
the U. S.
more would have been ac¬
an
barrels -per
day in 1967, up
a day
from about 7 million barrels
should
its growth trends.
the latest AGA
ously slowing
lion
day.
a
natural
date
will dustry will supply about 9% mil¬
and
-
level of 14.4 million bar¬
a
rels
has however been ineffectual
in halting or even ;serir
are,
to
requirements
energy
reach
ulatory and legal problems, * as
frustrating and inhibitive as they
In
addition, there will be
1,300,000 barrels daily of natural
liquids. At that time, the
United States, will probably be
producing near capacity.
It is
likely that exploration and drilling
.activity will have reached its peak
now.
gas
before this time.
That
In order to satis¬
matter mildly. may be offset or canceled out complished if the Memphis Case
the
anticipated
demand 4#
Oil demand in free foreign areas fy
against net property additions,
The bond market is, of course, of
had not caused cutbacks or can¬ is in an earlier stage of develop¬ 14,400,000 barrels a day a decade
with the result that actual re¬
from now, net imports, will have
primary concern to natural gas
cellation (i. e. the Beatrice project ment and seems likely to continue
tirement of the electric industry s
transmission companies. All types
of planned
construction) seems to expand more rapidly than in to approximately triple to about
of borrowers are concerned with previously-issued bonds are a rare less
['"
important than the demon¬ the United States. Supporting this 3,600,000 barrels per day.
occurrence. The pipeline industry,
the level of the
bond market;
strated vigor of the industry de¬ outlook is the unavailability of
on the other hand, does not gen¬
-•'/ Canada, Venezuela and the Mid¬
however, there are aspects in the
spite adversity. Natural gas re¬ natural gas in many foreign re¬ dle East are
likely to more than
erally have a provision permitting
pattern of pipeline financing
a
competitive edge
over gions and the difficulty of expand¬
a
credit for property additions tains
double their production during the
which make this industry espe¬
heating oil for the house heating ing coal' supplies.
For the next next ten years.This is because
against sinking fund retirements.
cially sensitive to the effect/Of
market
and
continues to
make -decade demand abroad will grow
The
rapidly increasing cost of
reserves are large relative to pro-these higher interest costs. One of
share of this about 7.7% p£r annum and will
senior capital experienced by all inroads into oil's
duction, and output is capable 6f
these factors is the higher pro¬
market, to put the
■
,
portion of debt employed by nat¬
pipelines in financing
their expansion programs and the
other is the rapid rate of amorti¬
zation applicable to pipeline in¬
debtedness. The operation of sink¬
ural' gas
serious
pipeline
result in a
including the
borrowers
industry obviously can
squeeze
on
the common
stock
equity component of the
capitalization unless the Federal
Power Commission allows a com¬
As
business.
saturation
62%
to
heating
result,
a
and,
when
all
of
85%
gas
and
power
lower
electric light
but
industry carry much pending.
sinking fund requirements
such
most
remaining 5%, and net income 17.5%.
/
/
of
lack
The
cases
visible
progress
6.2%
Supply:
/
for
developing
W. H. Morton & Co.
the
INCORPORATED
sumption.
Exchange Place, New York 5, N. Y.
cation of the
area
Underwriters
—
next
STATE AND MUNICIPAL BONDS
more,
forth
to¬
bring
will
year
considerably
to in-
•
;
FOR
BONDS
the
BANKS
.
remain
can
will -the
Or
pressure
-
*
;
v
estimates
Distributors
•
Dealers
answer
EH 4-6600
PL 1-1900
*Open Thursdays until 9 PM
Principal Stock and Commodity Exchanges
Members
BOSTON
NIW
PHILADELPHIA
-
CHICAGO
YORK
-FROVIDEMC*
ROCKFORD
DETROIT
PORTLAND
-CHARLOTTE
CLEVELAND
BANGOR
WORCESTER
PEORIA*
MEMPHIS
EST. 188 8
mmmmmmmm
of its
"Future
Over
a
Half Century of Efficient and
ply for the free world -during the
yearn
1958-67.
Capital expendi¬
tures
necessary
to finance the
Economical Service
AS TRANSFER AGENT
growth visualized are also esti¬
mated.-By utilizing this interest--
in
long range study, together
with other material, certain guid¬
ing
ing • principles can be established
which are, we believe, useful in
arriving at
tion of
an answer
to the ques-
'
integration.
New York, N. Y.
■
•
We
Outlook
for
the
Petroleum
The
long
range
the
annum
.
stockholders.
out¬
industry,
according to the Petroleum De¬
partment of the Chase Manhattan
Bank, is for a demand growth in.
the United States of nearly 5%
for
and other advantages to
distributors, corporations
and their
Industry
Demand:
and Jersey City, N. J.
afford economies
underwriters,
per
*
-4,
;
47th St. (17)
are
the
look
Brokers
Weeks
*
the long range fore¬
Department
Chase Manhattan Bank.
dustry
of
•
York 5, N. Y.
•Midtown: 400 Madison Ave., at
periodic bulletins, en¬
Growth and Fi¬
nancial Requirements of the World
Petroleum - Industry,"
has
just
been released.
This paper fore¬
casts demand and sources of sup¬
*
Commodities — Mutual Funds
40 Wall Street, New
question, it seems wise to
ahead for several years, de¬
titled
AX-EXEMPT BONDS
petroleum during the next -ten
will reach the staggering
total of $140 billion. This is nearly
twice the expenditures of the pagt
casts of the Petroleum
One
Tripp & co., inc
j
years
producing "ii1-
to this
NY 1-3082
^
far
the
Hornbloweh
independent,
to integrate-
spite the uncertainties that always
attend such projections. Of great
usefulness in the petroleum in¬
DIGBY 4-9440
daily rate.
Expenditures: Capital
outlays necessary to supply .the
world with the estimated demand
Capital
„
In order to attempt an
KENNY CO.
present .4 million
Corporate and Tax-Exempt Securities
several years
questions con¬
cerning the changing patterns of,"
the free world petroleum indus-;
look
J. J.
ap¬
capacity production. This
result
in
production rates
will
pastern
States
Bank
Underwriters
become irresistible?
EXCLUSIVELY
United
world
other areas
most
approaching 9 million barrels per
day in 1967, more than double the
great that all of
for petroleum
so
as
proach
needs
the' domestic
raised many
have
refiner
DEALERS AND DEALER
demand
balance
to
utilized
be
to
supplied by this prolific
try. One of the recurring queries
is, whether the small producer and
-
Eastern
world
its
daily.
barrels
Integration Desirable? '
Is
Events of the past
MUNICIPAL
of
present
Middle
production will continue
million
2.6
twice
nearly
hence,
un¬
•
ward eonstructiye solutions
der review.
IN
years.
are
SINCE 1888...
progress
dustry problems than the one un-
BROKERS
56%
for
Manhattan
Chase
that
plant by 1970 to accom¬
modate a doubling of volume sales
and a 45% increase in customers
served; It is therefore hoped that
the
therefore, be able to produce five
million' barrels per day ten years
if political stability and ade¬
Within
company
Dealers
ten
next
should,
Venezuela
Maracaibo.
de¬
quate facilities were provided.
perplexing problems
currently facing it. AGA forecasts
the need for $36 billion of new gas
HAnover 2-5620
world's
could be
to
private capital markets by clarifi¬
Suite 3811, 20
more
in
In fact, Middle
are
reserves
the
preserving
of
urgency
serves
demand, but has only 13% of re¬
serves.
In sharp contrast is the
Middle East with 72% of the re¬
serves and
less than 1 % of con¬
of the gas
investor confidence and access
the
accounts
now
industry's growth over the coming
decade or more clearly empha¬
sizes
1,300,000 barrels per day.
Venezuela, substantial new re¬
and *; productive' capacity
have
been
developed
in Lake
In
supply production
growth
than 2%
up more
go
times to
evenly distributed relative to the
consuming area. The United States
counter-seasonal market.
A recent AGA survey
29.5
doubt
are
these reserves
However,
important
an
over
little
is
reserves
estimated
the
mand
Also
revitalized with renewed promise
of
oil
than ample, to
noticeably
been
There
crude
that
this period gas-fueled air
conditioning equipment and sales
have
total
1967.
will
and
year
a
million barrels daily in
produe-,
Canada's
States.
United
tion should
^
during
promotion
and
Thus, totaT demand for the free
will exhibit a growth of
expected to have heat¬
tomers are
pensatory increase in
expansion at a rate much faster
at lower costs than in the
f-
*
world
cus¬
'./v/ s
the over-all ing service.
ing funds results in the rapid
The
effect of these trends
is
rate of return; Reflecting these
retirement of the earlier low-cost
circumstances, a number of pipe¬ apparent in the industry's oper¬
issues and replacement with the
ating results for the 12 months
line companies have applied for
ended June 30, 1958.
higher-cost issues of more recent
Operating
rates of return of 6^% and more
revenues were up 12.6%, Mcf sales
years.
By contrast, other public
utilities such as the
in 1967.-S
-
AGA, will continue advancing to
1970
15.1 million barrels a day
average
by the end of 1957
according to the
rose
petroleum
for the next decade.
on an expansion in
Write for our
and
State
free booklet setting forth the Current
Stock
Registrar and Transfer Company
This is based
population "to 200 million people
by 1967.
A rising standard of
living points to overall energy
.requirements 50% greater.' than
present rates.
Petroleum
will
supply almost one-half of the total
Federal
Original Issue and Transfer Tax Rates.
50 CHURCH
15 EXCHANGE PLACE
STREET
Established
New York 7,
N.Y.
BEekman 3-2170
1899
Jersey City 2, N. J.
HEnderson 4-8525
-
Volume
Number 5804
188
,
.
The Commercial and Financial Chronicle
.
(2359) :43
ten_ years. In the United - States,
expenditures will climb from a
little
over
Long Term Implications
Crude
Prices:
Oil
It "appears
Since
the
that
becoming more and
sup-J
$6 billion to $9.3 hillion
producer
is
During recent years the United
industry has found an aver¬
age of 20 trillion cubic feet an¬
nually, which is at least twice cur-
plies of crude oil are abundant ent on the refiner to take his
in; 196Tand total about $77-;billion, throughout tlie world, and shut-in .crude;.and, indeed, he must eventhe decade. Outside of the
productive capacity is at least 4usually think in terms-of providing
tor
United- States
expenditures
will* million
barrels "per
£*re than double front $4 bilhon proximately 25%.
to $8.5, bimon, and
to^al outlays ducing rates, it
3^" jeac™
day,
,
his own market
/V This-is particularly
ap-1
or^
of present
pro-
rent'
period.; Expenditures in.,19.b7 in
the tree world by the entire pe-
.
©f crude in the foreseeable future,
^
rate
of $17.5 billion, of which 60%
wiH .be for production facilities,
-Due to the relatively high cost
fact,
the
tendency
is
-
are
selling prices
ated
cilities-outside the United States',
toward- Since voluntary import quotas are
price erosion by discounts or iso- likely to be with us for some time,
lated ~r e duc ti o n s for specific tthe new producer of
foreign crude
crudes.
This - is. particularly true must sell most of his
oil at a dis^in
terms.
X
/,
Foreign Crude Production—Im¬
ports of "crude" into the" United
.
have
been
at
a
States will increase
tremendous pace.
reserves
to mestic operators with new foreign
-visualize, an- increase in the price ^production and no marketing fa-
hhhph during^the
discoveries
favorable
production rates, and in Can¬
ada
true of do-
difficult
is
a cpmpany to have' a
good; credit
standing' to' obtaiii these funds on
States
depend-
more
under
tracts.
costs
Costs of finding
only a fraction of
being negoti¬
long" term cdn-
fold
nominal.
-•
^
>
to
duction in amounts
Consequently, many companies
are turning to exploration; for nar
heavy crudes yielding a large count in world markets to comtural gas within Canada and the
off inding
and^ developing produc- percentage of. fuel oil. Because panies with established refining United
tion in the United States in recent
States, while at the same'
fuel oil has vigorous competition and
marketing outlets. In other time
confining much of their ex¬
years, as well as the rapid expan- from natural
gas within the Unted;! words, the refiner and marketer
ploration for crude oil to areas
sion of the search,
the industry states, the wellhead price of low,
throughout the free world, includ- outside the
has been unable to. provide all ofUnited States. Export
gravity crudes has suffered, and ing the United States, is in a
po-' of gas from Canada to the
its capital needs.
north-*
Over the last gravity price differentials have sition to obtain
ample supplies of erri tier of, states is almost a' cer'five years, funds required by the been increased.
^
^
" crude
from
many
alternative tainty under the
pressure of more
Unit^ States, petroleum ^industry
Since the United States product/sources at a price level that allows than ample supplies now available
ing industry is relatively high cost him.to maximize his refining and irt: Canada for its domestic mar-*
and debt, Totaled $4.5 billion. This
compared: w i t Iv o t h e r major marketing profits. /
;
.
ket. ,;V.\V..fJ:
Was .equal to 15% of all expendi—
y.f";:
sources of crude: in-the""world
it/
1
•*-, *
>'
tures.- It is probable that over $6
Financial Ability—The domestic
wag net essary to impose
voluntary
Cost of Expanding Production—
billion-Was^.raised, througheither import quotas to limit th.e; sUp61y^ Exploration for oil in the United industry is faced with the pros¬
equity or debt financing, by; the
]ow-cost foreign crude entering States during the past seven or pect of large and rising capital
.worldwide1 industry ..during the> |jie United States. This
even
was done
overlooking
e]gbt years has become difficult expenditures,
past; tiyeyears..
/-i-V*^ in order to maintain a
influences
which
healthy and expensive. The capital cost of inflationary
/- This v dependenceon
outside domestic industry for national de- expanding domestic production has might prevail. Added to this is the
funds is likely to continue for the fense
fact that internal cash generation
purposes
in the event ;* of increased from 80c per barrel > in
-
•
/
-
find
capital markets
made
will
to
recourse
have
to
ortliodox warfare. The Texas Rail-.1 tbe
cult, with the passage of time.""
:'»•
road
be
Commission
also
.$1.50
applied
4-
Mr.'
x
i
i
Capital.contributions
-
v»c,a
«
production had not turned to foreign areas.;
the other
Moreover, considering
have
has
sure
been on
the
to .raise; its
industry
in
money
not
which;
necessary
.
Within
or
debt.
the
United
States
the
small
independent producer miist
attempt to replace reserves \ at
,
.
competitive costs.
And it may,be
necessary to supply a market for
his crude.
The independent re¬
finer, on the other hand, has found
it
imperative to overcome; the
to go to the money mar¬
time to time for equity
It will be important for
relatively "tight" capital markets,
the refiner.
;
This
must
the Middle East, five times
Continued
„
on
44
page
Tzzzzzzzzszzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzmzzzzzzzzznzzzszzznzzzzzzzzzzzt
tion costs and the net-back value, north.
of
the
products after processing.
.
m
were
twicethai; for^ur
account gathering and transporta-
ea/eM
that
Venezuela and,,if Canada
take into
neighbor
b^the
:
and
V Because
of the
high cost of do¬
mestic production, the rate of re¬
turn for solely, producing
ccmpa-
'
hies in the United States has been
declining
during
the
post-war
particularly since 1952. This
years,
has
process
-to
FIRST OFMichicav CORPORATION
>
it
difficult
enough funds inter¬
nally to replace reserves now being- produced which had been
found
Underwriters and Distributors
rendered
generate
>
-
previously at
Consequently,
producing companies in the
United
States, both small
and
large, are in a semi-liquidating
"
much
many years
lower costs.
I
most
STATE,: MUNICIPAL
;
y
•
and
:
J
CORPORATE
Members
Detroit
and
'
;
position. And this no doubt ex¬
plains the recent upsurge in ex-1
' y '
proration
■;
;
SECURITIES
Midwest
Stock
activity
many
companies
Excfiajiges
DETROIT
the
who previously
.
." !
the
running out of oil.
However* it is apparent that
CHICAGO
Phelps, Fenn & Co.
by
years
-operated only domestically.
This is not to imply that
United States is
NEW YORK
outside
United States in recent
our:
domestic producing industry must
Columbus—Battle Creekr—Flint—Grand Rapids
Lansing—Saginaw—Bay City
become
more
cheaper
.
.
drilling,
efficient
air and gas drilling, etc.
most companies
-
through
wider
spacing,
Although
will expand their
GRANBERY, MARACHE & CO.
"
foreign activities in order to try
to find
cheaper reserves, domestic
operations will continue to receive
Members New York Stock
the majority; of their capital funds.
,
..
This is because the United States
Underwriters, Brokers and Dealers
and Other
Exchange
Exchanges
-
is not only the largest consuming
center in
the
world, but also, its
in
political stability justifies this at¬
titude.
t
INDUSTRIAL, RAILROAD
Natural Gas Demand
PUBLIC
UTILITY
•
'
Demand
•
i
.
tinues
.
AND
FOREIGN SECURITIES
for
natural
unabated
in
gas
^
and
during
has
been' essentially
average
such
the
Burnham and Company
YORK
CABLE:
COBUSNHAM
ANO AMOHCAH STOCK CXCHANOES
NEW YORK S, N. Y.
Corporate and
C
States
pression-proof.
MCMBCRS NCW
con-.
United
the
period
15 BROAD STREET,
Underwriters and Distributors of
t
as
Midwest.
Further
may
been
,
be expected in
the West Coast and
In
addition
to
the
.rising .steadily
in
spite
of
;
regulation by the Federal Power*
~
.
.
Municipal Securities
abcive-5
.strong growth factor, prices have
Dl 4-1400
TELETYPE NT MM!
gains
areas
.
the-post-war
de-?
Commission.
wellhead
.'per
M<£~
By 1967 the average
price should reach 15c
as
contrasted
current level of 11.3c.
with
the
NEW YORK
•••
try during thip foreseeable future,
it appears that integration will
;be
desirable, if not necessary, to com¬
pete effectively.
-
completely these
expenditures. :■ Consequently, all
units of the industry will find it
ket from
•
jn ; mind the patterns
should./ become rapparent
within the world petroleum, indus¬
cover
pres- lively high cost. In fact, our cap.
producerito1^! cost is about 10 times that of
large demands for funds justify the value of his crude to
it is probable that the oil
will
/.Conclusion
•'
t^Wsslon in demand*the
,
anticipated throughout the world,
will
areas,
ary 1957. However, as a result ofploratioh -and producing segment
the surplus-producing capacity and ol our industry is becoming rela-
if the emphasis on exploration and
nmrinMW
free foreign
c°st.> have been held fairly eonstant at about 60-70c per barrel
during the entire postwar period,
Consequently, the domestic ex-
year, and these two supply-liminay, |^|ng actions succeeded in main-:
exceed $15 billion during the next
taining most of the increase in the
decade and would be much higher price of crude instituted in Jnnu-
,.j
per barrel currently. How-
heavy proration .during the past -everyin,the
by all segments of the in-
to about
years
/.
Having
'
early postwar
\yill
ability to compete; w^th
its
those companies who do liave ac¬
cess to foreign crude .more diffi¬
;
foreseeable future and
in¬
dividual company is
highly desir¬
able. Otherwise, - a company'
.
-
approximately
equal to these" ratios for each
'
<
barrels
the" present 12% ' to
nearly
25% over the same period. Access
low-cost foreign /crude pro¬
V
0f
-
nearly three¬
million
from
,
Furthermore, -• operating
afe
about'3.6
daily within 10 years. ; The ratio
of imports to demand will double
now
new
to
,
PHILADELPHIA
44
The Commercial and Financial Chronicle
(2560)
Continued jrom page
Comparison of Crude Oil Reserves Owned by United States
43
Billion
tendency for the price of his raw
remain
rather
constant
while
product
prices fluctuate often widely. This
process erodes profits in reces¬
sions and impairs the credit stand¬
ing
of
the
company
possibly
enough to prohibit the raising of
capital on sufficiently reasonable
terms to finance expansion and
crude
oil,
to
modernization.
It therefore appears
vital for
a
company to be fully integrated in
its domestic operations, with gross
crude
and
production, refinery run$
marketing outlets
controlled
35.0
Total Free Worlds
Leonard
SOURCE:
were
concentrated
in
the,
firms—such
M.
-
Oil,
,
.
Journal;
1954);
World
States possessed 59%
world's known oil
Foreign
American
Oil and the Free World/(New York:
Petroleum Institute; The Oil and Gas
Oil.
of the free
while
reserves
the
of
also
but
countries,
producing
the likelihood of increased
on
■
been estimated by the Chase Man¬
ernment oil company concluded a
principal
factor
contract with the Italian Govern¬
causing American oil companies
ment
oil
company
(commonly
to go abroad relates to the higher,
referred to as ENI) and the Saudi
rate of growth of petroleum de¬
Arabs entered into a contract with
mand in the foreign free world.
a Japanese private company cov¬
During the postwar period domes-,
second
The
tic oil dejnand has increased about
whereas the rate of
growth in the foreign free world
has averaged about 11% per year.
ering
new
a
Saudi
Arabian
per year
concession
the
iu
Kuwait offshore
-
Although
areas.
price
wars
in
the industry.
The Growing International
Char¬
acter of the Domestic Oil In¬
the
for
34.8%.
Reflecting the intensified search
oil in foreign areas over the
for
United
States
these
two
con¬
of at least
3% per year over the next decade
or
so,
free
with
world
that in
expected
forcigji
the
to
continue
past two decades, at tremendous
averaging about twice the domes¬
One
of
the
most
significant increase in foreign crude oil re¬ tic rate.
serves has occurred, as shown by
changes which has taken place
Another lure for domestic oil
within the oil industry
in the the following table:
companies to "go international" is
It
is interesting to note that
postwar
period
has
been
the
the freedom to exploit a foreign
large-scale expansion of domes¬ within the past 20 years there has discovery. In the United States,
tic
oil
companies into foreign been a significant shift of the states having conservation laws
areas.
Prior to World War II world's petroleum supply from the
frequently find it necessary to
there were relatively few United United States to the Middle East.
place sharp restrictions on crude
States
oil
companies
operating At the end of 1938, the United oil output which results in a
stretchout of the payout period
on
domestic properties.
For ex¬
ample, during the recent period
of over-supply in the oil industry
UNDERWRITERS, DEALERS and DISTRIBUTORS
Texas permitted only eight days
of
production in each of the
Public Utility, Railroad
months of March through June,
dustry
and
Industrial Stocks and Bonds
Bank and Insurance Stocks
Central National
on
West's
oil
'
reserves.'
;
:•-*
Corporation
Member National Association of Securities Dealers, Inc.
100 Park Avenue, New York 17, N. Y.
Telephone: LExington 2-7300
a
75-25 basis in favor of
the
producing country although
government for the first time
required to provide a share of
divisions
of
Developments
the
Canadian
Petro¬
leum Industry, with the exception
of natural gas, have been passing
difficult period. Pro¬
consumption for the
first time in many years has de¬
clined moderately, both on a per
capita and total volume basis,
reflecting a lower rate of busi¬
ness
generally and an exception¬
ally mild winter in nearly all
parts of Canada. The overall de¬
crease, however, has been mod¬
erate—being about 4% in the first
six months of 1958 compared with
through
a
duction
and
the
corresponding period of 1957.
are not yet avail¬
able, preliminary figures for more
While full data
months
recent
that
indicate
signs that
are
degree of
some
.
well
be
part
of Canada's whole
regarded
as
integral
an
economy
and fluctuations in these activities
reflect
the
business
prevailing
the other
state
of the weather.
and
hand, because of Canada
is
sensitive
the vicissitudes
to
of
the international crude market.
The Canadian petroleum indus¬
try's major difficulty is finding a
market for its crude oil, especially
in the export market.
is
first
the
capital for development work.
These
agreements
new
have
caused considerable
to the
as
speculation as
possible effect on the older
well
future
as
However,
agreements.
concession
the
Saudi
Arab
government has stated that
no revision in the 50-50 split in¬
cluded in the Aramco concession
is envisioned.
sions
of
Nevertheless, revi¬
older
the
concession
in
the future to provide for at least
some change in the 50-50 pattern
and extension of the governments'
agreements
may
be witnessed
During the
consumption of
half of 1958
produced
domestically
million
63.4
down
consumed
barrels
crude at
only
barrels
was
from the 64.9 million
2.2%
the
in
sponding period of 1957.
corre¬
By com¬
parison Western Canadian exports
of crude in the same period of
of
1958
million
17.1
about
down
barrels
from
barrels
first
months of 1957.
six
the
suffered
were
the 30.4
exported in the
44%
million
greatest
Alberta
in
decline
exports from 23.8 million barrels
in the first half of 1957 to 8.3
million barrels in the first half of
this
industry's startling postwar
growth pattern. While the 10%
decline in production does not in
itself appear to serious, the de¬
-
.
the
Despite
mand
Japanese Securities
of
YAMAICHI SECURITIES COMPANY
of NEW YORK, INC.
/
Brokers and Investment Bankers
for
oil
liberalization of the petroleum to
profit-sharing ratio in favor and Uruguay.
gradual
50-50
PRIVATE
Saskatchewan, on the
year.
hand, actually increased its
exports
by 2.2 million barrels
other
Argentina, Brazil
Although the pos¬
remained
Manitoba
while
almost
unchanged. The sharp decline in
exports, almost all of which are
made to the United States, is the
result of the complicated after¬
math of the Suez Canal crisis.
It
that
in
now
Canadian
1958
will bq down
first
in
This
1957.
year
that
failed to increase
the
moderately
182 million barrels pro¬
from the
duced
Glore,
will
be
production
materially since
Leduc field in
1947; the develop¬
ment which initiated the Canadian
crease
contains
much
greater
as appraised against
the fact that 1957 production was
significance
equivalent
to
only
50%
G.A.Saxton&Co., Inc
Teletype NY 1 -1605-1606-1607
Hendricks & Eastwood,
Philadelphia
YAMAICHI SECURITIES CO., LTD.
Inc.
Reinholdt & Gardner
JAPAN
of
Forgan & Co.
Dallas
St.
-
Louis
the
has
discovery of the now-famous
Chicago
Schneider, Bernet
& Hickman, Inc.
"
almost certain
crude production
appears
WIRES TO
Affiliate of
52 Wall St., New York 5, N. Y.
WHitehall 4-4970
McAndrew & Co., Inc.
San Francisco
of
On
exports crude oil to the United
States, the Canadian oil industry
the
/
BROADWAY, NEW YORK 6
re¬
covery has started.
A
%
■
The refining and finished prod¬
ucts
marketing operations may
•"
111
the
downward trend has halted. There
participation
in
earnings
from
solely production today to include
1958.
As a result, producing oil
refining and marketing as well.
wells in the United States in re¬
Another
aspect of foreign oil
cent years have averaged only 12
is concerned with Soviet Russia's
to 13 barrels per day. In striking
possible invasion of the world
contrast, a good well in Venezuela petroleum market by using its ex¬
can
produce 2,000 barrels of oil
portable surplus of oil as an eco¬
daily, and in the lush fields of the nomic
weapon.
The Soviet Union
Middle
East yields soar to
an has
in
its
confines the
largest
amazing 6,000 barrels daily. Also, area!
petroliferous potentiality
oil wells in many foreign areas
in the world. If Russia's standard
are shallower and hence cheaper
of living and per capita consump¬
to drill. It is not surprising, there¬
tion of petroleum are ever raised
fore, that return on invested cap¬ to a level comparable with the
ital in foreign areas may be con¬
United States and Canada, the So¬
siderably
higher
than
in
the viet's
petroleum
consumption
United States.
would experience
a
tremendous
'•
$
$
$
Y
increase.
Crude production rose
.
TOKYO,
A
;
fast-growing de¬ from 200 million barrels in 1948
abroad, foreign oil to 700 million barrels in 1957,
operations may not be as profit¬ when surplus of oil available for
able in the future as they have export
amounted to 50 million
been in the past. This possibility barrels. Recently the Soviet Union
is based not only on the likelihood has made barter deals to supply
-/•';
.
split
the
During the past 12 months all
time should
hattan Bank. Based on gross in¬
tracts differ from each other, both
occur less
frequently.
Refining
vestment in fixed assets at the
provide for an increased govern¬
and marketing profits should be
Although these rates of growth
end of 1955, of the $22.9 billion
ment share in profits.
More re¬
stabilized so that an adequate re¬
representing the
entire foreign may diminish somewhat in the cently Standard
Oil
(Indiana)
turn can be realized on invest¬
future, reasonable long term pro¬
free world, United States oil com¬
worked
out
an
agreement with
ments made in these segments of
jections indicate a rate of growth'
panies contributed $8.0 billion, or
Iran whereby future profits are
tive
undermine
62.6%
235.6
Socony Mobil Oil,
the Middle East's share was only competition for markets and con¬
Standard Oil of California, Stand¬
price - cutting
resulting
17%. By the end of 1957, how¬ sequent
ard Oil (New Jersey) and Texas
ever,
United States oil reserves from development of substantial
Company.
These companies ex¬
represented only 13% of the free crude reserves and production in
tended their operations into for¬
world's total and the Middle East foreign areas and the necessity of
eign areas with the support and
position had climbed to 72% of the the companies, particularly the
even encouragement of the United
total. As a result of large expen¬ smaller operators, to recoup their
States State Department.
At the
ditures by the American oil com- investment as rapidly as possible
end of the World War II only 13
for oil
exploration in and to meet; concession obliga¬
American oil companies were ac¬ papnies
;
foreign areas, United States inter¬ tions.
tive abroad.
The expansion into
ests have increased their owner¬
Most concession agreements in
foreign areas of operation has
ship in foreign oil reserves from the principal producing coun¬
proceeded at an accelerated pace
35% at the end of 1938 to 58% at tries
provide for a 50-50 split of
in
recent years with the result
the end of 1957.
the profits from oil production. In
that today there are no less than
recent months the Iranian Gov¬
200 American oil
companies, or
Gulf
as
to
moves
accessability to Middle East .crude
;
57.6
205.3
*
70.4%
29.7
Fanning,
McGraw-Hill,
production such activ¬
hands of the larger oil
96.0%
Canadian Oil
approximately equal. The level of
operations should exceed 30,000
barrels per day to achieve efficient
refining and marketing activities.
Furthermore,
these
economic
forces
will
undoubtedly
bring
actively engaged in
about merger and sale of many individuals,
smaller
producing and refining exploration and/or production in
companies into larger, more effi¬ some 74 foreign countries.
tf
tf
#
cient units. Aggressive, intelligent
competition between these larger
The extent of investment par¬
integrated
companies, many of
ticipation by American oil com¬
which will be world-wide in scope,
panies in foreign operations has
will be commonplace, but destruc¬
12.4
Owned by
U. S. Cos.
30.3
96.0%
Foreign Free World
abroad, and because of the sub¬
requirements nec¬
essary to carry on foreign explo¬
ities
17.3
trade offensive in oil
a
recognized, the real dan¬
ger still appears to lie in Commu¬
nist ijrifiltration and other, political
—13/31/57-
,
Billion
Barrels
U. S. Cos.
United States
stantial capital
ration and
*
c/c Owned by
Barrels
Area
Gas Securities Committee
material,
sibility of
As of December 31 —1338 vs. J957
-12/31/38
Report of IBA Oil and Natural
Thursday, December 18,"1958
must be
Companies
,
...
COrtlandt 7-5680
Trading Markets in Public Utility^ Natural Gas and Industrial Securities
the
Volume
188
Number 5804
.
..
The Commercial and Financial Chronicle
.potential output under strict con¬ reserves has been almost, inci¬
servation practices. Furthermore; dental to and a by-product of the
during the 12 months ended June search for oil. There are few who
30, 1958 there was a 10% increase will deny that a great deal more
in the number of producing oil natural gas will be discovered and
.wells.
*
■_:* undoubtedly there .will; be ample
j
.The present;: situation iri; the reserves for export .to the United
Canadian petroleum Industry as States.' Evenrthe very conservative
.pictured above is, to say the least, Albert Oil & Gas Conservation
^disappointing. The c ond it ion, Board suggested in a* report issued
however; is regarded as tempo¬ in September that during the next
,
rary and
.
the more immediate and
outlook is V by no
means' gloomy.
Predictions have
: ben madebymajor oil companies
thatther''ground lost of this year
Will • be " more than recovered in
*
.
J1959. At the
same time it was not
anticipated that j the very rapid
irate of growth in exploration and
«production during the past years
■
,
-attractive target markets are lo¬
cated in areas tributary, to. Pacific
and Atlantic ports which can be
served by Canadian crude
only via
could be maintained.
It has been
British
pany
American Oil
Com¬
gested
Limited: estimated ultimate
reserves
in western"
coverable
Canada
production
a
level
pf
intensity of the Soviet
will decline in time, I see little hope for early
change. Oh the v other, hand,^ there is the constant
danger that we ^will fall asleep again.
_
by primary methods at proven oil
-
-"If
b
:
If '.
reserves are to be ade- ;
quate
the support production at
rates, the. crude discovery
situation
in
port of the Canadian Government.
It has beeh indicated that this in¬
Joseph P. Downer
Wertheim & Co.,
terim report and its recommenda¬
^
;
presents d'sharp contrast end
the oil picture. The Westcoast
Transmission
line
was
of
The
completed
*
&
*
New Orleans
'outlook
1959-60
the
for
Canadian petroleum industry is a
in 1957 and is now delivering gas
to British Co 1 umbia and the
resumption
United States Pacific Northwest—
that has characterized the past 11
growth
trend
William
large
G.
and
"I have
.
pipeline southwest out of Alberta
to supply additional gas to Cali¬
in
Allen J. Nix
Another appli¬
cation
is
United
pending
States
and
before
Canadian
the
au¬
thorities to export gas south out of
Manitoba to supply the north cen¬
tral states.
Proven recoverable natural gas
reserves
in Western Canada are
now
cubic
in
the
feet.
order
It
of, 39
should
trillion
be
noted,
however, that until relatively re¬
cently the build-up in natural gas
and
Underwood, Neuhaus & Co., Inc.
North America fades into
history,
resumption of normal increase
in demand for petroleum is to be
expected.
One factor which may tend to
retard Canadian production ex¬
pansion is the continuing overtanker
ocean
Riter
&
an
apartment. Even Mr. Khrushchev wants to
attain the American standard of
have
the supreme
•—
"Times."
Adlai E. Stevenson, inethe New York
"y'.
y.y*
vV-.'
Just what Mr. Stevenson would have
w©
are
us
do "with
certain, but there is much
not
wholesome food for thought in
what he
says
here.
DICK & MERLE-SMITH
►
(Special to The financial Chronicle)
&
Municipal Bonds
Corporate Bonds & Stocks
RENO, Nev.~—Leland G. Smith
.is.
now
with First California
Co.
Inc., 224. West First Street. Mr.
Smith was formerly with Harris,
Upham & Co. and Hooker & Fay
Canadian crude is growing stead¬
ily, the fact remains that the most
Continuing the security business
of
Roosevelt & Son founded 7797
in San Francisco.
48 Wail
agency
still
system, most people want if they can get it and
State
rates. While inland demand for
Every
we
Co., Inc., Chicago
With First California
capacity
close-ups and
living! And
advantage of living under the
Underwriters & Distributors
Co., New York
The Illinois
accompanied by competitive tank¬
er
also
Paul A. Sellers
a
supply of
are
human. Their hopes and desires are for peace
very
Joseph R, Neuhaus
1957-58
consumers.
They are
up.
Kidder, Peabody & Co.,
New York
fornia
close
New York
already been reduced to more
manageable proportions.
As the
recession
the Russians
seen
tough, fearful and going places. But they
Frederick L. Moore
the United States and Canada have
business
*
*
McKnight, Jr.
Applica¬
Montreal.
economic
common
Dillon, Union Securities & Co., New York
tions have been made to govern¬
ment authorities to construct
a
and
in
Eastman
market.
Toronto
areas
*
:
ourselves"
White, Weld & Co., New York
rapidly expanding years. It is hot anticipated that
Trans-Canada Pipe the gradient of the growth curve
Line will be completed late in the will continue as steep as the in¬
present, year to transport natural dustry grows in size. The exces¬
gas from Alberta as far east as1 sive petroleum inventories in both
a
gas
i
the
of
.
,
im¬
enterprises.
afford, it"
L. Emery Katzenbach, 2nd
Soviet
vanced and retarded
.
y
(while
Adlat Stevenson;
"
Friedrichs & Company
1958.
with
perialism becomes more obvi¬
ous), and above all the free
world making a concerted effort to unite the ad¬
New York
Howard, Weil, Labousisse
presented before the
seriously if the Western'al¬
is vital and viable, the
residual colonial problems being
dealt
G. Shelby Friedrichs
tions will be
Canada
to
r::
keep it in ;; ■
liance
in
.
#
/) r: Vy 3
y >;■
talk
these
and, therefore, making estimated to be 247 trillion cubic 10 years of 400 million barrels
the industry increasingly depend¬ feet.
annually to roughly one billion
Late in 1957 the Canadian Gov¬
ent upon the export market.
barrels a year.
1 In many respects the western ernment named a Royal Commis¬
Respectfully submitted,
xCanadian petroleum industry sion on Energy known as the
grew up "the hard way."
The Borden Commission to undertake
OIL AND NATURAL GAS
geographic isolation of the pro¬ a complete study of the entire
SECURITIES COMMITTEE
ducing areas from the major in¬ Canadian energy field, the objec¬
dustrial markets of Ontario and tive being a more thorough un¬ Edmond N. Morse,
Chairman
Quebec is a handicap. Even serv¬ der standing of Canadian energy
Smith, Barney & Co., New York
icing the West Coast market ne¬ resources and their appropriate
cessitates traversing the very diffi¬ use. While the Commission's task Ralph D. Baker
James Richardson & Sons
cult terrain of the Rocky Moun¬ will take some years to complete,
New York
tains. From the first, the problem the urgency of the situation in the
of marketing Western Canadian oil and gas industries dictated a
Bayard Dominick
crude other than on the Prairies policy of initial concentration of
Dominick & Dominick
has involved the logistics of long the enquiry into these fields and
New York
distance
land
transportation in the preparation of an interim re¬
sjs
•
order; arid not jUst sitaroiind, A
>!• Of:
bickering/ postponing and: waiting for total peace to break out.
Moscow will be more likely to:
missions "by major oil companies
markets
natural; (gjas
•
housein order and
reasonably close harmony
•apparent for several years that
.rate will have to be increased
"the growth in producing capacity with this estimate: By contrast,
U. S. gas reserves are currently from an average during the past
was saturating available domestic
The
-;y
.
"The free world must set its
-
^
:
do a*lot yrith
we,can
ourselves.
:
308 trillion cubic feet. Other-sub¬
are
direct competition with oil from
foreign sources.
can't do much with
we
Moscow,
r
million barrels daily by-1980
re¬
3
Thoigkf
"While I think the
ocean
tankers carrying Eastern
.Hemisphere crude oil.
;
For the longer term, projections
by major oil companies indicate -a*minimum; production rate, for :
30 years reserves of well over 5:1
-Western,;Canada of/ l^ million o
trillion cubic feet will be discov¬ ^barrels
daiiy before the end of
ered in that Province; In" a sub¬
1965., The Gordon Royal Com- c.
mission to the Royal Coinmissioh mission
on
Canada's
Economic,
on Energy
(Borden; Commissioif) Prospects a few years ago sug- -
The
Wholesome Food in
'
long, pipelines, a more expensive
method of transportation than by
.
.longer; -term
;
(2561) ■'
Street, New York 5, N. Y.
panoramas—
must have
business-—that's routine,
a
close-up of each client's
A broad view of business in
general is essential, too.
AF-GL
serve
offers
both
accounts
in
more
unique
varied*
advertisers longer than
Clients tell
business
of their
areas
We
us
for
own
that
so
our
our
long
would
problems*
welcome
or
80 plus
exposure
helps give
an
been
serving
on
you
efforts
to
so
us
many
a
opportunity
your
44 WALL
STREET, NEW YORK 5
kinds of
present
GOVERNMENT
better picture
before.
achieve them.
appraise
Briggs, Schaedle & Co., Inc.
years.
SECURITIES
TELEPHONE:
BOwling Green 9-5600
to
discuss
your
public relations goals
and help
to
Few agencies
has
And often produces results in
they hadn't focused
advertising
degree:
None
TELETYPE:
.
1
m
1
N. Y. 1-2056
AF-GL
PHILADELPHIA
United States Government Securities
BOSTON
ALBERT FRANK-GUENTHER LAW,
Advertising
•
Public Relations
•
INC.
131 Cedar Street, New York 6, N. Y.
CHICAGO
'
SAN FRANCISCO
LOS ANGELES
Bankers
Acceptances
■
..iV','
Chronicle
The Commercial and Financial
46
...
(2562)
18
'It
level.
ent
Continued from page
American firms to scrap or mod-
likely, how-
seems
Thursday, December 18,1958
story of thrift and financial sue-
a
that the new Congress will ernize much of their existing plant cess from which all can learn and
to forestall any slack- and equipment;
;
/
benefit and which is true today
ening from the present pace of
; The third reason is our rabidly
as it was in ancient times.; .We are
housing construction. In any event growing population.
Ten years greatly indebted to; Robert O,
the construction industry will be^fronx-now. we will have 15% more Shepard, Chairman of our Educawell supported by the great -uppeople than we have now. Eigh- / tion ■ Committee, members of his
surge in prospect for nori-resi-<; teen years from now, in 1976, wb roramittee,
and = to Erwin W.
dential
construction,
of, ■ which will have almost 30% more peo- Boehmler, our Educational Direchighway
construction
will
be ,pie .<and these people will have tor, for their vision and efforts
prominent. Contract awards for substantiallv more
purchasing which have made this fine picture
ever,
take steps
Economic Recovery
Will Be SoiUmed
ereising control over the money
supply. Despite the mysteries of
the central banking mechanism,
this educational problem- should
not be insurmountable.
understand the
growth of
the money supply, arid everybody
should be able to understand that
when the money supply is kept
within appropriate bounds, two
things will happen: First—some
people are not going to be able
to get all of the credit which they
think they deserve; and secondEveryone
can
need for controlling the
Strikes
tained.
and
stop¬
work
held i October automobile
production to less than half of the
yolume of October 1957, seasonal
factors considered.
This was the
pages
principal reason for the declines
in employment and personal in¬
come
in
October, • which i have
caused much concern. With auto¬
the demand for. credit exceeds
met, and those who feel aggrieved
at having to pay a higher rate of
than
interest
look at the various sectors
we
of the economy,
I think I carl show
be
educated
have to pay,
straints
to
these
accept
as necessary
why
you
economy are
most
$1 billion lower than
last December.
they produced
think
they
t
should
ideally
can
re¬
if the greater
evil of inflation is to be avoided.
a
it was
These factors have
rising trend in retail
trend which should con¬
tinue at an accelerated pace in the
months ahead. We still don't know
what the demand for automobiles
sales,
a
a
better
omy
promote
of these
wo
are
plishments, but here let me repeat
something I heard not long ago.
alrftost 50%
eroine to have
.
an<* resting died., /We haije
the decline in the Gross National /quence
rest
Product! during the recession, has
come a long way, but there is stiu
slowing down,
been
and
we
can
of this sharp increase in
the early married age group, we
/will have a market for consumer
much to be done.
j
I am indeed most grateful and
appreciative of the splendid wofk
of ?ur Board of Governors, our
inventory/durable goods s and-? many other
accumulation
in
the
coming' things much larger than anything
months. The shift in the inventory
we have imagined heretofore.
picture has been and will con- ; Someone ;once/defined an optinue to be one of the most im-/timist as one-who says his glass
poitant stimulants to the economy. J is still half 'full, .while the pesexpect
shift
a
to
net
,
The
was made £imist is saying his glass is already
announced half empty.
I rafe not worried
that plant and equipment expenabout the glass'/running dry.
I
ditures could be expected to rise ...think our future opportunities will
in
slightly
wS?
.
picture
recovery
complete when it
en^irJtaff^Wash-
:
,
was
;
the -fourth
quarter,
fill
Evidence indicates that we are not
as
the
we
.5
about as-fast'
drink it. Being human,
made during the past year. It
™°J £^*e?glng
yea* to me.
:
and
glass: just
can
r
going to have another major cap- we are likely.to have periods of
goods boom during^ the nextmild indigestion rand we.may suf-
'
|inlilir M limnil Can
If
D'>
II0IID5 named rllla Wa't
year or so,
money,
bound to have
a
much better
but at least the capital fer from growing pains, but we
goods sector is not going to con- are not going to. suffer from stagtinue to: be a net drag
on the /'nation."
• .f>f,
than last year.
Residential construction has al¬
Although some figures show a ready had a vigorous revival, with
sluggish performance for October housing starts at the high¬
the economy in October,
I be¬ est rate in more than three years.
lieve this is a temporary phe¬ With tighter mortgage money in
nomenon
that the recovery prospect, residential housing may
is well founded and will be sus¬ not substantially exceed its pres¬
rather
'■
economy.
year
.
JWe, as an Association, may justifiably* be proud of our accom-
q
ital
Economic Outlook
.
wl PogMe.
Liquidation Halted
Inventory
more
are
and the nation.
than
construction have been *d0. We are going to be a younger
running at record levels in recent - country/too.
For example,- inmonths.
v",
" / credible as it may seem, in jM-1
'
1976
neering
is going to be,
but consumers have
less debt, and a
understanding
brighter outlook than a year ago
simple monetary facts of life, we
at this time, so I think automobiles
can do a real service for the econ¬
To the extent that we can
Zir^ommand
en^r
temporary
the prospects for the
good. Looking at the
the supply, the price of credit in consumer sector, we find that con¬
a free
market, the interest rate, sumer incomes are at an all-time
Further¬
must necessarily rise/ Even those high level, and rising.
who are frustrated by failing to more, the total of consumer in¬
stallment credit outstanding is al¬
have all of their credit demands
as
heavy
be reversed.
soon
If
and
production on the rise,
declines should
mobile
these
.
non-residential
On
of all
top
revival
in
the
this evidence of
private economy,
The
election
Hobbs
of
as
The
:
M.
A.
Hanna
has
Ohio
It is most encouraging When one
reviews the progress of our Association over the past decade. We
'
'
to be no
ing
a
relapse.
Company,
been
an¬
by
J o-s e p h. H..
Thompson,
President d£
have come a long way and havegrown
considerably in stature,
-which is due to the vision and
for expect- able leadership of my predeces- .
'* :
sors, to the time and effort of the
good reasons
A.
nounced
the
be solidly based, and there appear
.
William
of
Financial VicerPresident
The Progress of Our Association
-
Government expenditures are ex-
pected to rise substantially during
the coming year. So all told, the
recovery in our economy looks to
Ndlllld GO
company.
Mr. Hobbs will
his
ass u m e,
position
new
/ various
committees of the Asso-.
February,
1959.
ciation, and the work of the-very
Since Janu¬
capable .and efficient Staff .in,
ary,
1951, hie
probably be a good many months Washington. ... Evidence of this-has been a
before we again find ourselves,/
m stature is -the increasing;
partner in
pressing against capacity. We are tendency on the part of various
charge of se¬
likely to see a period of relative ; departments of the Government
curities
re¬
price stability during the months ?nc* Congress to seek assistance.
search for
William A. Hobbs
immediately ahead, but this should'
0U1, Association, in matters
not lull us into forgetting that inClark,
Dodge
which n°t only affect us, but afflation is likely to be our chronic
j. ,ou.r economy and general & Co., New York investment firm.
problem in the future, at least well-being. Further, I think it is He was with the National City
Even
though I think
ing to enjoy
a
we are go-
sustained rise in the
activity,.it will
in
;
level of economic
ORIGINATORS
—
UNDERWRITERS
—
DISTRIBUTORS
OF
-
NEW JERSEY MUNICIPAL
AND
until
AUTHORITY REVENUE DBUfiATIONS
time
hsuDv
i
time
such
have
I
ever
into
run
war
significant that, other associations
Bank
end, if such
depend upon us for information
later
the
as
be declared at
can
an
cold
come*?
a
sssist&ricc
"
grekt
many
who have beei indulging
pessimistic thoughts as to the
people
in
of
future
our
economy
.
.
.
thoughts that are somewhat reminiscent of the "mature economy"
thinking of the 1930's. These
Boland, Saffin & Co.
.
Established
pie
excess
1920
in
35
Wall
st.
peo-
capacity in
As most
on
of you
know, we-will
For, except in a
short run sense,
the exception of a hand full of
industries, we have no real probvery
Bell
System Teletype—NY
J-S35
lem
j
we
of
DEALERS
that ■ it-delivers a powerful and
timely message in a simple and
capacity.
Though
periods of turbulence *
fluctuations in produc¬
excess
wide
tion, profits, commodities, stocks
sand
—
DISTRIBUTORS
j
•
f
""/•'
sharply upward."
Reasons
for
which
INCORPORATED
are
certain
unprecedented
search
Company
-
expenditures
to
flow
level
.
New York 5, N. Y.
Teletype NY 1-199
Telephone HAnover 2-4474
Allan
pany
of N. Y. The firm also mainoi7j.
tarns an office at 2174 Clarendon
^
Established 1920
■
Dealers
Distributors
Underwriters
from
of
re¬
going, to,
require capital investmentJ on a
very large scale.
are
120 BROADWAY
•
NEW YORK 5, N. Y.
Teletype: N V 1-40-1-2
Telephone : WOrlh 4-2300
BOSTON
•
CHICAGO
•
PHILADELPHIA
•
SAN FRANCISCO
Second—It seems foolish to me
capacity when so
productive
capacity reflects an obsolete tech¬
nology/ The pressure of competi¬
tion and the pressure of rising
labor costs is going to force -roost;
much ot our present
i.
now
Associate Member American Stock Exchange
•
Direct Private Wires to:
to talk of excess
20 Pine Street
of
we
spending close to $10 .billion
per year in research and develop¬
ment, which, in my opinion, will
provide a base for the most stim¬
ulating
revolution
in
business
technology in all history/The new
products ^nd the new techniques
this
Geo. B. Gibbons &
business
Wynne, 66 Court Street, is
Corporation
a
First—There is the fact that
:
1934
New York Hanseatic
Continued Growth
are
i
Established 1914
From
;*
'
great period of growth
lies ahead of us:
ing that
Municipal Bonds
department.
It tells Road.
understandable manner.
I have three reasons for believ¬
State and General Market
and
1941
-
bonds, the slope of our eco¬
growth is certain to be/
nomic
—
in
Vice-President in
may see
and
UNDERWRITERS
trust
a
vjew the Association's new motion being conducted* under the firm
Picture,
The Richest Man in name of Provident Investors Com-
period of expansion that
lies ahead of lis.
whitehall 3-3414
the
^vestment
Shilto.
our economy are
danger of missing the boat
IiscbI 3.ncJ iponG"
Cleveland
tary problems. During the past to 1941 he was associated with the
'^,ear' the. various ^committees of Bankers Trust Company of New
"^hc Association have worked dili- York,
gently and effectively. The reP°rts which you will hear from
Now Provident Investors
the,Chairmen of the various committees ;over the next four days
BROOKLYN, N. Y>— The -in-
arc.su concerned about
the great
telephone
new york 5, n. y.
who
on
of
became
Boston-
*
Chicago;
Philadelphia
•
.
Cleveland
Pittsburgh
San Antonio
,
Houston
Portland, Me.
St. Louis
Los Angeles
,
Providence •*
San Francisco '
Volume 188
Number 5804
The Commercial and Financial Chronicle
...
Continued from
page 24
>•
tions
-
before
the
vibrations
reach
destructive proportions. Although
destined for this particular use;
^
tions/ "
t
Infra-red has
;
into its
come
/
own
through missile electronics. -Infrared,
heard about all of
these, for there
Isift a; week in which
our news¬
papers and magazines do not men¬
tion.
new'
information
about
the
the human
.
being.
solenoid valve, which seats
softly enough - to eliminate
vibration, Jias. been applied very
:
satisfactorily, to home-heating
The
delay in
sabi range, have helped build the
St.
Lawrence
Seaway, and are
w o
send
a
man
in
up
intend
and
bringing down costs in quarrying,
their next
one.
Taconite's Important Role
i\t]
.
It is estimated that taconite will
Strategy of Technological
Integration
I
%
be
processes
of
chemical
petroleum refining and distilling,
Infra-red "cameras are used iri
analyzing metallurgical material
processing operations—to aid in
accuracy and
another,^ and worthy of significantly- assisted in its growth
up. another satellite means
the Russians have the re¬
entry problem licked
to
sys-r
supplying about
third
a
°f_bur
ar\d application, through
sile-space programs,
opr
mis-
computer converter that can
quickly transform analogue siga
such
—
as
pressure measure¬
ments—into digital form.
In the near future—when guid-
devices- permit soft landing,
; ores in less, than 20 years. Until
vrockcf
c a riQ
and
nasseneer
This - means' that time is short. -1947 -we were unable to mine this
transport : will become feasible,
However,. the best strategy is not veiy hard rock, and then suitable
Mail may become almost as swift
a move-for-move
competition. It rotary and churn drills were pro- as
ance
^
is not
by concentrating all our ef¬
forts on putting a man into
space
that
will
we
win
the
long
Jet drilling, now available,
cracks and crumbles stone layers
by
run
I honestly believe that
space war.
will enter space more rapidly
as^our
whole economy benefits
from
in/
the
our
technological
space
beginning,
utilize
benefits
civilian
We
programs.
just
•
advances
commerce.
developing
industry
we
have
a
to
missiles
the
new
technology.
industry,
new
civilian
these developments can contribute
.to the
rapid growth of
more
economy of which T have
expansion
between three
Jet
-
piereing
take.
can
far
us
deeper
into the earth than we
have been able to go so far, to new
of ore and hydrocarbons,
According to this month's "Sci-
sources
and
niques.
lore.
are
proven
tech-
Stone quarrying has been
expensive
our
already
channeling
and
wasteful
hereto-
Rocket flame equipment al-
The New York "Tithes?' lows cutting along the natural
issue of Nov. 26 told about a good ; cleavage planes, or crystal bouncuts
stone
thin
example of this sort of thing: a daries—hence
without danger of cracking
plasma arc torch
spoken.
Linde
developed by
for fabricating
Company
ultra-hard materials and
by
coatings
production methods.
mass
The
and,
in
addition, produces
a
fine fin-
isn that cannot be obtained when
cutting by steel
or
abrasive tools,
060s degrees and can work within
Scientific
literature
is beginning to contain speculations oh
using the principle of the missile
tolerances
engine
torch,
an
outgrowth of plasma
technology, develops heats to 30,-
an
of
two-thousandths
of
inch.. Another application from
the missile
field, which shows real
possibilities
meter
that
bearings,
is
reliable
a
has
This
flow
packings
no
was
first
or
devel¬
oped for measuring liquefied gases
should have a very, wide in¬
and
dustrial
lead
usefulness.
It
may
even
to
improvements in marine
devices
for
measuring distance
and velocity.
>
mediate
plastics
are
evolving from
me
list
a
few:
of
The
inter-
chemical,
high
heats
perhaps,
be utilized to produce
desired products that would be
lost
by slow cooling.
But the
high rate of cooling accomplished
by expanding gases through the
engine nozzle, it is thought, would
save
these unstable compounds.
;
Exploration in this direction is
worth
pursuing.r/•
• :
Products of Missiles Program :
more
of these
contributions from missiles to in¬
dustry.
products
processes.
missile research.
Let
unstable
save
achieved ih the rocket engine can,
„
New
to
..
...
Ground-to-air missiles that ride
In the course of
a
testing missiles,
"rough combustion cut-off de-
vice"
created.
was
It
measures
vibrations, and cuts.of£ the
opera-
'
progress
economics of space travel:
pay load
about
f0r
costs for Vanguard were
billion dollars
one
the
future
near
a
pound;
launchings,
pay
expect commercial space
may
its objective.
_•
_,;r
:
.
'•
■
that
ment
bankers
there
are
in
nation
The
ditions.
We
-
our
'
..
.
-
our
lack of
total
integration, in the freedom
to make their own
decisions.
How do we 'compete
in this theater, then?
'
^
of many men
-
Conditions
are
differr
too
not
ent in the race for space,
lites
the
usefulness
have
we
heard
They will play
of
satel-
much
will
take
creative
talents
to
The Long View
•
longer be satisfied
day-to-day decisions
no
-can
and. leaving the long-run outconte
to others. We must take time to
lift
our
from the papers oA
and look ahead to seo
eyes
desks
our
where
we are going and how we
going to get there.
We faefe
opponent in two theaters of
are
an
He
war.
focus his
can
most
move
We must each of
us
seems
to
that
me
we
can
in
both.
that our
see
daily decisions lead to thfc same
It is possible to dO
because, as I have tried
indicate,
they
are
interrelate
campaigns. We will not succeed
if we- MNhv the* same, old/ tradi¬
tional lines of thought.
We can
kind of focus.
this
£
win if
know what
we
—that
is
world
believe
we
we
are
to
what
say,
•
of
kind
want to preserve, what
the basic values that must be
fought for—and work creatively,
determinedly to keep them.
x
Considering the need for inte¬
grated action in both these thea¬
ters, I can do no better than to
remind you of the remark attrib¬
assuredly
It
efforts to
effectively
uted to Ben Franklin:
talk,
v
:
.
totalitarian organization.
.
' Usefulness of Satellites
About
survive
through a united effort
than the' 13 separate states could
r
your
that
very
.
that they could
better
We
competi¬
believe
years ago,
founded because men
with; making
tion is not easy under these con¬
strength lies in
direction,
170
do alone.
And how many men
the use of that
country's- capital?
this
was
realized
•
direct
Russia
in
The
matter,
I- suggest-that
integration is d
key to our competition for space;
It has relevance, too, in the strugT
gle for the international market¬
place.
Your opponent - in
the
Kremlin/ Deputy- Premier Mikoyan, works with an integrated
economy,
however haltingly* it
may operate;
How many invest¬
in
in
opmdnt
Integrated. Economic Strategy
:•
in
was a move
that succeeded
Common Eu¬
ropean Market is another devd*
tive
action.
We must, for ex¬
ample,- work out means to trans-*
late defense-developed technol¬
ogy more effectively into civilian
uses.
direction
keep our freedom of action—for
none of us wants to submit to a
flight,
American," the Soviets are
developing jet blast equipment
extensively for drilling.
In stone quarrying jet
spalling
this
It
the
through 1 cooperation.
to,mind.
Several examples come
we
we
in
•.
making rapid
dJce
successful economic-
a
tegratfon
high.
face
is
to
achieve these results by coopera¬
challenge
ioa(j cost should be about one
thousand per pound.
When payload costs are about $100 a pound
\yc
entific
missile
created
induced
somewhere
is
and five times faster than rotanes.
in
'
.i* «*.••.<, *
:l While
materials, and
Transferred to
are
beginning,
from
thermally
and
achieve
to
and we
are solving some of
these prob¬
lems.
Hard thinking,
imagina¬
tion, and determination can bring
victory in the marketplace. This
is yout theater and your war. As¬
sistant Secretary Douglas Dillon
is waging this war with all his
strength, but he cannot do it alone.
telephone.
duced.
we
the
over
available
to such mobilization from on
Association?
. Another
very promising outcome from missile development is
nals
it
make
The Marshall Plan
meas-
quality control. The
of the jet-drilling fof ^entire /mfra-red field should be
use,
minmg is
putting
that
>
and
Infra-red is
complex
amplification. Missiles are.already
rkin g the ,economically-unmineable, taconite ore of - the MeT
nik^ Possibly,the long
be
urethe compositions of fluids in
;
terns, r*
are
.lagging behind, but we probably thave .less, time than we care
to. admit. There has been a long
period of; quiet since the last sput¬
connaisSance vehicles.
being used industrially to
The
itself
is
not.only expensive in capital. It
is time consuming. We no
longer
kid ourselves that ; the Russians
;
cannot
:
This princi-^
pie, now, being applied tov surveying techniques, has :revolur
tionized the-surveying industry, k*
v /
sive.;, Technical • development
-
Teet in several miles.
This - war pf research is:
expen¬
u.
to/. their /targets
it
must jammed—appears to be challenge
measure the distance to the target
ing radar for use in guidance de¬
plane with an accuracy of a few vices, tracking systems, and rea
effects, of weightlessness, or accel¬
eration. or of stimulus ..deprivation
on
beamr
which—-since
tific information from all
world
their people. But few of us in the
free world would care to submit
The
ctftri cut-off device could be modlfied for many industrial app!ica-»
•
m
(2568)
indeed all hang
"We
together,
must
most
or
shall all hang sep¬
we
arately."
i
;> ■
crucial part in
a
meteorological studies, in reconnaissance, and probably in cornmunications.
satellite
less
A
TV
to
I
networks.
length
about
space -programs
provide
present
on at
our
could
&* Co.
Blair
reliably and
more
expensively than
best
on
communications
promises
worldwide
INC
ORPORATEO
go
the
benefits
our
will bring to life
earth.
,
•
Business continuous since 1890
v.
Underwriters and Distributors of
,
Already the contributions have
and Railroad Securities
been felt in unforeseen areas—you
may have
read^ that an extract
from rocket fuel was developed as
a
/
.
Municipal, Utility, Industrial
Equipment Trust Certificates
•
Banks and Insurance Stocks
medicine for mentally depressed
patients.
This
is
a
significant
thing about scientific research and
technology. Looking back at the
history of defense developments,
we
the
that
see
in
20 Broad
giant
technological
impetus
given the
aircraft
industry in
World War I and the development
strides.
Witness
the
we
?ur
sPace
from
Albany
Atlanta
New Haven
Scranton
the
Flint
Eau Claire
Detroit
Pittsburgh
Philadelphia
Chicago
Grand Rapids
Columbus
Manchester
Rochester
St. Louis
:
Springfield Tulsa Washington Williamsport Wilmington
§ive our defense —
program —- will come
of
Teletype NY 1-1109
Buffalo
Boston
Aurora
can
awareness
Street, New York 5, N. Y.
Telephone DIgby 4-4000
of atomic energy in the Second
War. Progress in the military field
is closely related to progress in
the civilian. The greatest incen-
tive
Exchange
Principal Security Exchanges
concentration of
and funds solves prob-
manpower
lems
Members New York Stock
and Other
=
■
'grisl
'
■
manifold
peacetime
applications of missile
technology. These in
stimulate
growth in
other technologies.
and
space
turn
will
Our
UNDERWRITERS
in
DISTRIBUTORS
Corporate and
Municipal Securities
and DEALERS
our
strategy requires
research
ciently.
tance that
tific
tend
Unlisted Trading Department...
Dealers
through
our:
Syndicate Department...
can
with
<
NEW YORK
BOSTON
'
CORPORATION
MEMBERS
inratnwnt tsnfcfnf Service Since t!4i
America* Stock
New
CHICAGO
York, So*too end Midwost Stock Exchongot
Exchange (Attocicfe)
Securities and Investments
our
work.
wasteful dupli¬
security
dissemination
information.
HIGG1NS0N
a
some¬
security, we
compartment
mean
and
understandable
scientific and engineer¬
ing
effort.
One facet of this
problem is the great need for
more adequate communication ih
the
scientifc
community, -less
rapid
LEE
an
charac¬
reasons
economy
AMERICAN
i LATIN
cation of
concern
i
effi¬
utmost
for national
to
This
of
i
utilizing
more
impor¬
integrate our scien¬
of
For
our
out
concern
Service to
we
effort.
teristic of
times
resources
is
It
i
Frederic H. Hatch & Co.. Inc.
and more
of
Established 1888
current
*
-
Russian Integration
72/WALL
Telephone:
NEW
STREET
YORK
Teletype:
WHitehall 4-2400
5, N. Y.
NY 1-897
jj
li
The ^Russians have integrated
their scientific endeavors, begin¬
ning with their children's educa¬
tion.
total
Central
direction
of
PANAMA CITY
*
CARACAS
•
RIO DE
their
technological work toward
centrally determined goals has its
advantages. They collect scien-
SAO PAULO
•
BUENOS AIRES
JANEIRO
M
48
The Commercial and Financial Chronicle
(2564)
FAIKCHII.I),
Continued
from page 37
FALSEY,
Chas.
h Attendance at Convention
DAWSON,
DORBRITZ,
E.
Midwest Stock
Exchange, Chicago
DeBOLT, RICHARD IL
Indianapolis Bond Ac .Share Corporation,
Indianapolis
de BAGANCA, JOHN
Winslow, Colux & Stetson, New York
Robert Garrett
Bate man,
i
;
.
•
.
JOHN
-
Spencer Trask Ac Co.,* New York'
EUGENE L,
EBERSTADT,
F.
DEWITZ, HERBERT*. ,
J. A. Hogle Ac Co:, Salt Lake City
DIECKMAN, ELMER F.
V
Glore, Forgan Ac Co.,
DIEHL,
ROBERT
American Trust Company,
Washington
DIXON, JOSEPH W.
American Securities Corporation,
New
York
DOERGE,
O.*
JACK
Saunders, Stiver Ac Co., Cleveland
DOMINICK,
BAYARD*
Dominick Ac Dominick, New York
Baxter
Ac
First
Dallas
FRENZEL, HERMAN E.
Bankers
Trust
Company,
New York
Fahey,, Clark Ac Co.,
Cleveland
HAYES, PHILIP
Wall Street
Folger, Nolan, Fleming-W. B. Hibbs Ac
Co., Washington
JOHN E.*
Dean
D.*
STEPHEN
-7
New York
Bacon, Stevenson &. Co,
Members New York Stock
Members American Stock
FUNSTON,
Exchange
Exchange
Alester
G.
L.
F.
ROBERT
GARDINER,
Francis
M.*
HEWITT,
Reynolds Ac Co., New York
Telephone DIgby 4-4100
Ac
Gardner,
St.
Geo.
IIIG'KEY,
J.
The
100
BROADWAY, NEW YORK 5, N. Y.
CHARLES
Creston
|
W.
nOLMES,
•
■
The First National Bank, Forth Worth
Jr., HARVEY B.*
Johnston, Lemon Ac Co., Washington
GRANT, Jr., HUNTER B.
Winslow, Cohu Ac Stetson, New York
GREGORY, Jr.,
.
WILLIAM H.
Gregory Ac Sons, New York
-
•
'
—4
The
DISTRIBUTORS
'
DEALERS
J.
GRIBBEL, 2nd, JOHN
Elkins, Morris, Stokes & Co.,
GRUNEBAUM,
New
New
John
R. S. Dickson &. Company
INCORPORATED
J.
KURT
GEORGE
Nuveen
GUERNSEY,
B.
Member Midwet
%
Atlanta
Columbia
Direct
Stock
Exchange
NEW YORK
Greenville
Wire to All
CHICAGO
Raleifh
Richmond
Van Ingen Ac
.-nftMiftg*
- ex*
*
t
•
-
•
/
'j
HOPKINS, W. CABELL
' „•>
i
First Southeastern Corporation,
:
W.
E.
McDonald Ac
j
•
•
•
.
•
Co.,
New York
Mason-Hagan, Inc., Richmond
HAIGHT, Jr., C. M.
Tripp Ac Co., New York
HAIRE, JOHN R.*
New York Stock
Exchange, New York
Harkness Ac Hill,, Boston
on page
.
MUNICIPAL BONDS
SKCMUZMC M m UTS
LEBEINTHALfe CO.
osawMi^inniiMKeiNx
•
REdorMOT
XOUtdHmmhAmmkm
|OW) LOT MUNlCmULBCWDSJ
Bell
- -
Cleveland
Continued
Columbus, Ga.
-
ERNEST E.
Hutton Ac Co.,
'»
KILROY, CHARLES J.
New York
HALEY, DAVID A.
-
,
"
.
T.*
Co., New York
GUNN, EDWARD H.*
,
Washington
J.*
Ac Co.,
DAVID
Midland Securities Corp., Toronto
HABAS, EUGENE J.
Hugh W. Long Ac Co., Elizabeth
HAGAN, Jr., JOHN C.*
Offices
KEUSCU,
.
H.*
.
CHARLOTTE
Bacon,
.
Investment Bankers Association,
'
-
WILLIAM ».*
Whipple Ac Co., -Chicago
KERR,
Corporation,
,
JAMES F.*
Baker, Weeks Ac Co., New York
KERR. KENNETH
E. F. Hutton Ac Co.. New York
York Hauseatic Corporation,
York
GRUNER,
1919
KERESEY,
}
*
|
KELLEY, ROBERT I.
Harriman Ripley Ac Co., Chicago
KEMP, Jr., GEORGE S. (STEVE)*
Abbott, Proctor Ac Paine, Richmond
Bank, New York
Philadelphia
EstebHshed
.
S.
Washington
HOLMES, MRS. JENTRY S.
••
Angeles
•
.
The Chase Manhattan
Securities
Funk, Hobbs Ac Co.,
JENTRY
C.*
Co., Los
BRADLEY*
GREEN, SHELDON R.*
-
A. C. Karr Ac
KEENE, FRANK E.»
Stranalian, Harris Ac Co,, Toledo
Chicago
Hoban,
ARTHUR
KARR,
Liberty National Bank,
Oklahoma City
GREEN,
Guaranty Trust Company, New York
Corporate and Municipal
H.
Cleveland
Elizabeth
Hugh W. Long Ac Co.,
JOSEPH
I
i
GREGORY, III, WILLIAM IL
Gregory Ac Sons, New York
GREEN, GEORGE H. C.*
UNDERWRITERS
,
GRAM,
-
Joseph. Mellen Ac Miller,
KALBAC1I, C. ELLWOOD
International Finance
GRAHAM, T. E.*
COrtlandt 7-6800—» Bell System
Teletype NY 1-1459
Ac
Templeton,
ERIK
Instruments, Inc., Dallas
Texas
E.*
Jr.,
Jones Ac
Angeles
JOSEPH, HERMAN B.
Co., New York
HODGE, GERALD T.
Glore, Forgan Ac Co., New York
1IOLLAN, JOHN V.
Barr Brothers Ac Co., New York
Work
Robinson-Huinphrey Company,
Atlanta
Los
San Antonio
j
G.
Becker Ac Co., New
HENRY
Mitchum,
JONSSON, J.
IIOBBS, Jr., WILLIAM G.
Bank, Los Angeles
R. ELLIS*
Clement A. Evans Ac Co., Atlanta
GRADY,
TOM
McMahon
California
G.
HARRY H.*
MacArthur Ac Co., Detroit
JONES, RICHARD W.
Hilliard Ac Son, Louisville
Ac
Co., St. Louis
Jones Ac
D.
II,
Kenower,
Watling, Lerchen Ac Co., New York
EDWARD F.
GODSHALL,
A.
Edward
JONES,
S.*
IIOBAN,
WAYNE*
GOLDSMITH,
J.
MATTHEW
Ac
Currie, Houston
JONES, EDWARD D.
HENNING*
IIINSHAW,
Blyth Ac Co., New York
Members American Stock Exchange
Moreland,
Hollywood Sun-Tattler, Hollywood
GLASSMEYER, EDWARD
W.
B.
HINDS,
GERARD
Rene T. LeClerc, Inc., Montreal
GLOVER,
J.
York
Savannah
DOUGLAS E.*
Brandenberger, Johnston
JOHNSTON,
WILLIAM
Wertheim
GINGRAS,
Members New York Stock Exchange
New York
IIILSON, JOHN S.*
York
ROBERT C.*
Peabody Ac Co., New
THOMAS M.*
Johnson, Lane, Space Ac Co.,
Kidder,
JOHNSON,
Peoples National Bank, Charlottesville
MALVERN
Malvern Hill Ac Co., New York
D.
Lehman Brothers, New York
Ingalls & Snyder
•
•
HILL,
RICHARD
Milwaukee
JOHNSON,
Philadelphia
Hickey Ac Co., Chicago
1IILLIARD,
Milwaukee Company,
MARSHALL H.*
McDaniel Lewis Ac Co., Greensboro
WILLIAM W.
III,
York
Co., Savannah
JOHNSON,
L.
duPont Ac Co.,
HILDRETII,
Angeles
JOSEPH T.*
JOHNSON,
Company of Georgia, New York
Trust
GEORGE B.
Gibbons Ac Co,, New
B.
GIBSON,
Johnson, Lane, Space Ac
MAX A.
UIBBERD,
Louis
GATCHELL, EARLE
Hayden, Stone Ac Co., New York
GAVIN, GENERAL JAMES M.*
Arthur D. Little, Inc., Cambridge
GEDDES, EUGENE M.
Clark, Dodge Ac Co., New York
GENACHTE, PAUL F.*
The Chase Manhattan Bank, New York
GIBBONS, Jr.,
I.
EARLE*
JESUP, NELSON R.
Clark. Dodge Ac Co., New
JOHNSON, DAVID T.*
New York
The
CHARLES
Ac Co., Chicago
J.
Jr.,
EDWARD J.
The First National Bank, Chicago
Johnston, Lemon Ac Co., Washington
GARDNER, JOHN R.
Reinholdt
F.
Forgan
William R. Staats Ac Co., Los
(TOM)*
Rothschild Ac Co., New York
HEWITT,
Hornblov.er Ac
Broadway, New York G, N. Y.
Ac Co.,
-
Dallas
JAMES P.
JENNETT,
1IEWARD, JAMES W.*
Butcher Ac Sherrerd,
Greenville
Furman,
Glore,
JARDINE,
Philadelphia
TIIOMAS B.
Weeks, Boston
GONNETT,
39
JAMES
Birmingham
HESS, Jr., WALTER W.
Vance, Sanders Ac Co., New York
JAMES F.*
Southwest Company,
First
JAMIESON,
Woodcock, Hess, Moyer Ac Co.,
GALLAGHER,
GALLIVAN,
/
HESS, ARLEIGH P.*
P.
Kidder, Peabody Ac Co., New York
WILLIAM G.
BONDS
Freres
Lazard
National Bank,
Francisco
JACQUES,
Co., Des Moines
IIKRZOG,
Washington
MUNICIPAL
C.*
Hugh W. Long Ac Co., Elizabeth
EDWIN II.*
HON. EDWARD N.*
and Exchange Commission,
Securities
GALLAGHER, FRANCIS
Crocker-Anglo
San
JACOBY, Jr., LEWIS P.*
Thayer, Baker Ac Co., Philadelphia
Indianapolis
HERBERT, THOMAS J.
Washington
GADSBY,
JACOBS, ALGER J..*
..
Indianapolis Bond Ac Share Corporation,
Department of the Treasury,
-
T.
MAITLAND
JACKSON, Jr., WILLIAM C. (DECKER)
First Southwest Company, Dallas
LOUIS S.
IIENSLEY, Jr.,
New York
CHARLES J.*
GABLE,
•
JAMES R.*
Hendrix Ac Mayes,
KEITH*
G.
TED
Philadelphia
Co.,
Ac Co., New York
ILLOWAY, LAWRENCE B.
Penington, Colket Ac Co., Philadelphia
JACKSON, Jr., JAMES*
White, Weld Ac Co., Boston
Banking Ac Trust Co.,
C. Henderson Ac
T.
IIF.NDRIX,
Ac
JAMES M.
Ac Co.. Cincinnati
Hutton
W. C. Langley
Philadelphia
HENDERSON,
<
York Stock Exchange,
New
Chicago
Corporation, New York
First Pennsylvania
Washington
FUNK, CRESTON H.
Creston H. Funk, Hobbs Ac Co.,
E.
I JAMS,
Ac Co.,
.
WALLACE II.
National Association Securities Dealers,
Antonio
W.
HEMPHILL, GEORGE W.
FULTON,
San
Witter
Ristine
P.
HUTTON, Jr.,
Dempsey-Tegeler Ac Co., Los Angeles
IIKFFERNAN, PAUL
New York Times, New York
1IEGAMASTER, Jr., DONALD Z.
Anderson Ac Strudwick, Richmond
Denton, New York
Fuller Ac Co.,
E.
HECHT, JOHN C.
FUGLESTAD, ARNE*
D.
F.
Journal, New York
Adamex Securities
Cincinnati
S.
Francisco
San
Bank, Chicago
11EALY, GEORGE P.*
Walter, Woody Ac Heimerdinger,
FULLER,
,
Mitchuin, Jones Ac Templeton,
HAYS, EDDE K.
FROST, HARRISON C.*
Ac
v
.
"
I ROEIILICII,
Burns Bros.
•;
.
nUTTLINGER, KURT J.
National
American
.
Hayden, Miller Ac Co., Cleveland
J,
-
•
Ac Co., Pittsburgh
FRANK H.
Baker, Simonds Ac Co., Detroit
HUTCHINSON, Jr., WILLIAM N. L.
HAYES, MILTON J.
FRIDLEY, EARL G.*
Fridley Ac Frederking, Houston
FRIEND, ARTHUR S.*
;
■
McKelvy Ac Co., Pittsburgh
HURLEY, WILLIAM L.
GILBERT
Jr.,
•
;;
:
.
W.
DAVID
McKelvy
HUNTER,
Bank, Dallas
National
JANSEN
E.
HUNTER,
B.*
White, Hattier Ac Sanford, New Orleans
1IAWES, HARDIN H.
*
Harris Trust Ac Savings Bank, Chicago
Salomon Bros. Ac Hutzler, New York
-
'7
White, Weld Ac Co., New York
MAURICE*
IIATTIER,
D.*
MERRILL
FREEMAN,
LLOYD
HATCHER,
Corporation,
HUNT,
Weld Ac Co., New York
White,
New York
San Francisco
Co.,
Chicago
FAI1EY, LESLIE
HATCHER,
New
-
;
Pittsburgh
Glover A: MacGregor,
.
Greenville
Alester G. Furman Co.,
PAUL O.*
Co.,
HULME,
;
CLIFF C.
IH,
>
:
.
Huguenin Ac Boothman, Dallas
MILTON G.*
7
Dumas,
G.
G,
Becker A: Co., Chicago
HATCHER,
Dallas
Co.,
American Securities
M.*
Phalidelphia
ERTINGER, WOLFRAM L.
Laird, Bissell Ac Meeds, New York
EVANS, CARNOT W.*
Clark, Dodge Ac Co., New York
EVANS, CLEMENT A.
Clement A. Evans Ac Co., Atlanta
EVANS, THOMAS W.«
Continental Illinois National Bank,
Stroud
Ac
A. G.
W.*
F.,
Ac
ELMER
IIASKMAN,
New York
Co.,
Sons, Baltimore
CHARLES
-7
■
v
HUGHES,
World-Telegram Ac Sun, New York
York
FREELAND, II. THEODORE*
ERGOOD, Jr., RUSSELL
Mr. and Mrs.
♦Denotes
Dittmar
WILLIAM B.
Eppler, Guerin Ac Turner,
New York
STANLEY
Bankers Association,
Investment
FRANKLIN,
Ac
Alex. Brown
Ac
FREDERICK,
York
JOHN B.
EPPLER,
Bankers Trust Company,
MRS.
San Francisco
Fox
Partners. Toronto
HASKELL,
■■ ■
• >
Indianapolis
"
.
.. ..
WILLIAM R.
Wagenseller Ac Durst, Los Angeles
HUGUENIN, A. BRYCE*
„'
'
v
SHANNON
W.
Raffensperger, Hughes Ac Co.,
IIARVEY, Jr., F. BARTON*
Meyer Ac Fox, Los Angeles
" "
C.
;
Lord, Abbett Ac Co., Los -Angeles ''
HUGHES,
WILLIAM
Ac
.
R.
ALBERT
HUGHES, Jr..
HENRY*
HARRIS,
J
;>.
Lord, Abbett Ac Co., New York
Goldman, Sachs Ac Co., New York
Harris
FRED*
F.
P.
Atlanta
EMPEY, LESTER II.*
D;
<
O.*
Marshall, Seattle
Frank,
FOX, P.
Courts Ac Co.,
New York
Jr., EDWIN J.
DIKEMAN,
Fort Worth
D.
Estabrook Ac Co., New
ELLIS,
Paine, Webber-, Jackson Ac Curtis,
Los Angeles
DIMAS8IS,
RICHARD
EGBERT,
A;
Stern,
F.
California Company,
First
York
ALBERT
FOX, ABE B.*
York
WILLIAM N.»
JOHN
KGAN,
New
Co.,
7
.
-J
'
HUGHES,
HARRIS, DAVID J. (JACK)
Bache Ac Co., Chicago
HARRIS,
W. -
Bah, Burge & Kraus, -Cleveland
Jr., ALBERT R. (BCD)
k
-
'
Harrington Ac Co., Jackson
GEORGE T.
Weeks, New York
Foster
.
(GUS)*
FRED
.
^
-...
Chicago
Farwell, Chapman Ac Co.,
HUDSON,
,
Minneapolis
GEORGE *L ' f-. *,"
Jr.,
i
'7
\
■
-
Harris, Upham Ac Co., -Chicago * U
HOWE, JAMES M.
7 v.
-77- ■'
Ac
CV
*
Piper, Jaffray Ac Hopwood,
"
*
Dooly Ac Co., Miami
4
'
-j
EDWARD*
C.
HOW ABD,
HARRINGTON, FULLER A.
Fordon, Aldinger Ac Co., Detroit
York
HOW ARD.
Harper Ac Son, Seattle
Wm. p.
Hlbbs Ac
'"777
Hornblower Ac
FOSTER,
ANDREW*
Eberstadt Ac Co., New
7
.
FORDON, RALPH />-.
William N. Edwards Ac Co.,
Winslow, Cohu. Ac Stetson, New York
Ac
FLYNN,
Corporation, Detroit
KENNETH C.
Shelby Cullom Davis Ac Co., New
EDWARDS,
WILLIAM A.
•
V
EMERY
Oscar E.
EBBITT,
-
DeSTAEBLER,
Harkness
Dallai
-
„
B.
HARPER, DICKINSON
'1
j
,
HOUSTON, JOSEPH C.
Calvin Bullock, Ltd., Chicago
ROBERT B. Hill, Boston
HARKNESS,
;
Union Securities Company,
Dallas
-
Blyth Ac Co., San Francisco
Long Island City
W.
ROBERT
Co., Washington
HOUSTON, B. F.
•
Boston
CHARLES
HARKINS,
Folger, Nolan, Fleming-W. B.
FI.1NN,
EATON, Jr., CHARLES F.
Eaton Ac Howard, Boston
-
Reynolds
HENRY
York
CHARLES J.*
Worcester
FLEMING,
Milwaukee
C.
First of Michigan
As Co., New
Burr,
Ac
•
G.*
EDWARD K.
The Illinois Company, Chicago,
GENE
FLEMING,
WILLIAM
HARDY, Jr.,
C.
JOHN
Hanraban Ac Co.,
York
piiarr*
Rotan, Mosle Ac Co., Houston
-
Coffin
Pittsburgh
•
A.*
Co., New
Baird Ac Co.,
W.
Investment Bankers Association,
Washington
7
'
.
HARDING,
Sunshine Biscuits, Inc.,
,
NEWMAN L.*
Robert
DUSON,
'
-
The Chase Manhattan Bank, New York
DEMPSEY, L. WALTER*
B. J. Van Ingen Ac Co., New York
De SELDING, EDWARD B.
DEVLIN,
Devine Ac
EARLE,
W.
,r
'
JOSEPH "T.
H. Hentz Ac Co.. New York
Wertheim
FLACK,
WILLIAM J.
Trust Ac Savings Bank, New York
DUNNE,
Eichler ■& jCo., £jqs Angeles
de MILHAU,
J.
Jr.,
.
WILLIAM R.*
St. Petersburg
Beil & Hough.
HOUSMAN, RUSSELL J.*
New York Herald Tribune, New York
MURRAY
HANSON,
7
1
N.*
Deane As Scribner,
FITTERER,
York
Blyth Ac Co., New
Harris
CHARLES
Singer,
DUMPER,
C.
FISUER.
HOUGH,
Shields Ac Co.,
New York
Co.,
H.
ARTHUR
Penington, Colket Ac Co., Philadelphia
H.*
DOUGLAS R.*
New York
HANSEL,
Co., New York
BRADSHAW*
At
W.
HORTON,
Braun, Bosworth Ac Co., Chicago
nOWARD
Greenshields
SYDNEY
DUFFY,
Jr.,
Bear, Steams
FIRSTBROOK,
Co., New York
Ac
DUNN, STEWART
de HAVEN, WALTER Tj*
DeHaven Ac Townsend; Grouter Ac Bodine,
New York
DELiTNO,
Wertheim
\*
Gi*
FINNEY,
O.
c.
allen
Dubois,
-
Ac 8ons, Baltimore
WILLARD
ERNEST
Leonard Ac Lynch, Pittsburgh
DROBNTS, GEORGE J.
30 W. Washington St., Chicago
HOWARD B
Harris, Upham Ac- Co., New York
DeGBOFF, -RALPH L.-*
Buffalo
Co.,
Moore,
*
DEAN,
DeGROOT,
Ac
Doolittle
Dawson, Hannuford Ltd,, Montreal
DAY, JAMES
ROY W.*
DOOLITTLE,
DUDLEY*
HAMMOND,
BERT
.
t
Lynchburg
Dempsey-Tegeler Ac Co., St. Louis
Co., Philadelphia
GEORGE
Jr.,
B.*
duPont & Co.,
HORNING,
R.*
Sulzberger, Jenks, Kirkland Ac
Hallowell,
New Haven
Scranton Ac Co.,
M.
Ferris Ac Co., Washington
FERRIS,
HENRY
HALLO WELL,
J.*
WILLIAM
W.
Francis L
York
Spencer Trask Ac Co., New
FARRELL, F. D.
City National Bank. Kansas City
EDWIN
HORNER,
HALL, DENTON D.
W.*
Corporation, Chicago
PAUL
The First Boston
Thursday, December 18,1958
...
System Teletype NT 1-2272
:
73
Volume
188
Number 5804
Continued
from
page
.
.
.
The Commercial and Financial Chronicle
the Senate and was reported fa¬
vorably by the House Committee
25
on
Banking; but it did not
the
Report of IBA Municipal
House.
vn
pass
Attached
*
(g) Bank Underwriting of Reve¬
Bonds
nue
Securities Committee
No action
taken
was
the bills
on
construction
during
com¬
ing months.
'(c) Federal Aid for School Con¬
struction; Defeated
Bills
proposing Federal finan¬
cial assistance in the construction
of public
elementary and second¬
schools, through Federal loans,
ary
grants and guaranty of bonds, did
not pass.
i
•
submitted
were
by
bonds.
foreign languages; (3)
education fel¬
lowships; (4) $88,000,000 for estab¬
lishment of programs for guid¬
ance, counselling, and identifying
able students; and
(5) $18,000,000 (for grants or contracts) for
research and experimentation in
the
to
public
ele¬
mentary and secondary schools
hearings were held by the
when
Subcommittee
tion
of
Education and
Subcommittee
Committee
Labor
on
and
on
by the
Education of the
Senate
Committee
Public
Welfare.
IBA
Labor
and
general,
pointed out that:
the
(i) The
number
classrooms
mentary
on
In
needed
and'
of
additional
in
public ele¬
secondary
schools
has been decreasing steadily dur¬
ing the past five
From
years.
an
estimated 312,000 additional class¬
rooms
needed in 1952, the need
decreased to
additional
an
estimated 140,400
classrooms
in
needed
1957
(63,000 to accommodate ex¬
cess enrollment and 77,200 to re¬
place unsatisfactory facilities).
(ii) The rate of growth in pub¬
lic
school enrollments is decreas¬
ing because the school
lation
will
not
age
popu¬
be
increasing as
'rapidly as it has been in recent
years.
The rate of growth in en¬
rollment in elementary and sec¬
ondary schools combined in the
1958-1964 period is estimated to
,be
15.7%
less than during * the
,1952-1958 period.
(iii) Record classroom con¬
struction programs are continuing,
with sales of school bonds by state
local educational agencies to
finance
public
elementary and
and
schools aggregating
$2,360,690,000 in 2,898 issues
secondary
over
in
1957
and
sales
of
such
bonds
during the first 10 months of 1958
aggregating over $1,968,338,000 in
over 2,443 issues.
The National Defense Education
Act
1958
of
provides other types
education, prin¬
(1) $295,000,000 over the
designate
"industrial
areas"
ment
It would
redevelop¬
"rural
and
redevel¬
ties for industrial
among
provided
usage
conditions
other
that
65%
of the aggregate cost of the
applicant, (c) $75,000,000 of Fed¬
eral grants to states, political sub¬
divisions, or public organizations
or
associations, representing any
redevelopment areas for the con¬
struction or improvement of pub¬
lic facilities within a redevelop¬
ment
area.
a
full-time teacher in
a
public
school
elementary or secondary
(10% of the loan for each com¬
plete academic year of service);
Investment
Com¬
panies
tions
is
taken
of
V
Area
the
Problems
in the growing
metropolitan
area
of
have
been
during recent
studies
under¬
Many
years.
initially include
metropolitan area prob¬
but other studies are di¬
rected to
a specific function such
transportation, water supply
and pollution, or sewage disposal.
as
The report of the Subcommittee
Metropolitan
defeated.
was
state
would
sales
have
this
of
tax
Subcommittee
principal
Co., Denver
Carlton. R. Cronirv
Allison--Williams Company,
by one-third
and
would have increased state
income tax rates in certain brack¬
ets. The net effect of the
Propo¬
Minneapolis
Milton S. Emrieh
sition would have been to
impair
Julien. Collins
seriously
Chicago
the
California
credit.
state's
Group
The
of
the IBA at
its Annual Convention this
year
adopted a statement strongly op¬
posing Proposition 17.
commends
California
of the State of California.
Incorporated, Philadelphia
steps had been
provide an area-wide
*
Folger, Nolan, Fleming-W. B.
Banker^ Trust Company,
•
-
,
Francis P. Gallagher
,
Kidder, Peabody & Co.,
New York
Maxwell, Chairman
Company,
William G. Harding
Coffin & Burr
Chicago
Incorporated,
William M. Adams
Boston
Braun, Bosworth & Co., '
Incorporated, Detroit
Lloyd B. Hatcher
White, Weld & Co., New York
Alonzo C. Allen
Oscar W, Hirschfeld
Blyth & Cm„ Inc., Detroit
Stranafcan, Harris & Company,
Eugene Arnold
Cincinnati
George E". Lestrange
Arthurs, Lestrange & Co.,
Pittsburgh
Continued
re¬
on
page
areas
taken
to
approach
one or more
metropolitan area
problems. The report of this Sub¬
proposal, to
permit regu¬
lated investment companies which
hold
the
bulk
their
of
assets
in
tax-exempt
bonds to pass taxexempt interest through to their
shareholders
in "exempt interest
dividends," passed the Senate as
an
amendment
was
to
the
this
developments
those
areas
and also
was
not adopted.
would
authorized
have
committee
the
recently
"National
Metropolitan
funds
for
Federal
t
ized
a
new
program
of
Federal
$250,000,000.
This
bill
passed
•
UNDERWRITERS
DEALERS
•
develop¬
participated
Conference
Growth"
of
Wash¬
in
Serving the Expanding West
ington, Nov. 24-25, sponsored by
the Chamber of Commerce of the
United
States.
J. A. HOGLE & CO.
Liaison With American Bridge,
Tunnel and Turnpike
ESTABLISHED
Association
A
increased
college housing loans by $400,000,000 (from $925,000,000 to $1,325,000,000) and would have author¬
BROKERS
of
other metropolitan
some
(f) Federal College Housing Loans
the
re¬
Technical
eliminated in conference
4035
some
The Chairman of the Sub¬
areas.
in
reviews
in
new
Act; but the provi¬
committee and it
S.
year
cent
Subcommittee
1915
Members of New York Stock Exchange
for
Liaison
and Other
with the American
Bridge, Tunnel
Turnpike Association, under
the Chairmanship of Walter Steel
(Drexel & Co., New York), has
Principal Exchanges
and
continued
to
Association
ning
part
cooperate with that
and
of
assisted
the
last Convention.
in
plan¬
its
NEW YORK
•
DENVER •
SALT LAKE CITY
•
SPOKANE
•
LOS ANGELES
.
RENO
BOULDER
SAN DIEGO
IDAHO FALLS
BEVERLY HILLS
P0CATELL0
RIVERSIDE
0GDEN
LONG BEACH
PR0V0
MISSOULA
\
BUTTE
?
A member of the
Subcommittee participated
in a
panel discussion of various prob¬
lems in connection with toll fa¬
cilities and also arranged for the
appearance on the
Specialists in
resentative
of
institutional
panel of
one
of
holders
a rep¬
the
of
major
revenue
bonds.
Emanuel, Deetjen & Co.
VI
ESTABLISHED
1929
Industrial Revenue Bonds
Foreign Investments
Although the Committee has re¬
peatedly directed attention to reso¬
lutions adopted by the IBA, the
Municipal Finance Officers Asso¬
ciation
and
the
Municipal
MEMBERS
New York Stock Exchanob
American Stock Exchanob
Midwest Stock Exchange
Commodity Exchange, Inc.
Law
UNDERWRITERS - BROKERS - DEALERS
Section of the American Bar As¬
sociation, all of which direct at¬
tention
to the dangers in using
public credit to finance the con¬
tsdbnAoldand&P.
dttc.
INVESTMENT
Associate
Members
struction
Telephone
WHitehall 3-9200
for
Stock
again to direct
attention
resolutions.
to
those
There has been
Teletype
NY 1-515
120
Broadway
Teletype: NY 1-1973
New York 5, N. Y.
7
Exchange
Street, New York 4, N. Y.
CORPORATE, MUNICIPAL & FOREIGN SECURITIES
use
has been requested
'
industrial
30 Broad
facilites
by
private companies, the Committee
SECURITIES,
American
of
ing,
such
to
relatively little
revenue
bond
financ¬
K
JjJ( oj
Cable Address:
EMANSTOCK
but occasional proposals for
financing make it desirable
emphasize repeatedly the dan¬
gers
Telephone DIgby 9-0777
in such financing.
IS Avenue de la Gere, Lausanne, Switzerland
i
TUCSON
at
program
;
W. Neal Fulkerson, Jr.
New York
SECURITIES
The Northern Trust
:
Hibbs & Co;, Inc., Washington
COMMITTEE
John M.
-
Arthur S. Friend
Respectfully submitted,
MUNICIPAL
Company,
Russell M. Ergood, Jr. /
Stroud & Company,
The Com¬
the
&
few of
a
metropolitan
where
/
Lester H. Empey
American Trust Company,
San Francisco-
Area
viewed developments in
the
Company, Winston-Salem
Byrd P. Crist
This
reduced
Harriman Ripley & Co.
Problems,
under the Chairmanship of John
Incorporated, Philadelphia
S. Linen (The Chase Manhattan
James T. Beeson
Bank, New York) is available as
Clement A. Evans &
Company,
a
separate report. Last year, the
Inc., Augusta
report
Wachovia Bank and Trust
The J. K. Mullen Investment
Group for its strong stand in op¬
position to the proposal which
would have impaired the credit
-
numerous
on
California
reflected
which
these
lems,
municipal fi¬
.
John C. Clark
■
,
The Committee would
particu¬
larly note that Proposition 17 on
the
November, 1958, ballot in
mittee
Recognition of the vital impor¬
tance of metropolitan area
plan¬
ning
and
organization for the
performance of area-wide func¬
ments in
The
of
acquisi¬
attorneys.
IV
committee
(e) Municipal
Sept. 6.
tional
the
bond
in
in
a
to
on
loans for college classroom facili¬
ties with an initial authorization
for
comment
Metropolitan
President Eisenhower
(2) $300,000,000 over the next four
years for grants to state educa¬
agencies
to
'
This bill passed the Senate and
the
House
but
was
vetoed
by
with
as
by
other
•
^
no
such assistance should not exceed
ment of funds at colleges for low
a
and
ers
number
unemployment,
(b) $100,000,000 of Federal loans
in industrial redevelopment areas
and $100,000,000 of Federal loans
in rural redevelopment areas to
aid in financing any project for
the development of lands or facili¬
This model
by mu¬
nicipal officials, investment bank¬
studies
persistent
sion
provision that up to 50% of
loan may be canceled for service
drafts
nary
been
cipally:
interest loans to college students,
drafted
opment areas" in which there has
Amendments
for the establish¬
economi¬
authorize (a) the Commissioner to
of Federal aid to
next four years
Act
S. 3683 proposed the "Area Re¬
development Act" to "alleviate
employment in certain
cally depressed areas."
law.
a
prepared under the spon¬
was
attached
interest
desiring Proposition
Frank Curley
(Hawkins, Delafield & Wood, New
York) after subjecting prelimi¬
pur¬
conditions of substantial and per¬
sistent unemployment and under¬
states
sorship of the National Municipal
League and copies are available
from the League. The model law
Vetoed
General Educa¬
on
House
the
adopt such
was
Redevelopment
(d) Area
available for
law
poses.
of
Law
A Model Revenue Bond Law is
now
effective utilization of tele¬
education
Bond
and
Clark, Landstreet & Kirkpatrick,
Inc., Nashville
summary of
1958 of par¬
nancing.
r
Model Revenue
vision, radio, motion pictures and
media for
revenue
m
funds for graduate
related
construction
underwrite
and modern
more
Statements
ticular
to
financing,
Louisville
Harold W. Clark
mu¬
decisions
court
banks
tion of equipment to provide ed¬
ucation
in science, mathematics
the IBA opposing Federal aid for
of
Appendix C is
as
pending in Congress to authorize
•public
Appendix B is a
state legislation in
as
1958 of particular interest in
nicipal
,i
.
James W. Chandler
W. L. Lyons & Co.,
Legislation and Court Decisions
summary
>
40
(2565)
j
50
50
The Commercial and Financial Chronicle
(2566)
Continued from page
dealers.
bond
49
■ ■
..
minimized
has
T h i
a
s /
procedure
V great
a
Eastman
copies 1 of
The
*
"
Committee
^
Harold M. Martin
Paul
V
;
.
.
,
r
The Pacific National Bank
.
;
of
York
New
on
The
years
Jr.tv:';-.-
tails
-
han¬
bonds
dealers
;
and
investors.
Under present
business
^
San Antonio
practice a le¬
gal opinion of
c ompetent.
.
Donald C. Patterson
Chemical Corn Exchange Bank,
bond
counsel
.
First National
ions
City Bank of
f
Estabrook & Co., Boston
>;
Richard N. Rand
Francis R. Schanck, Jr
as
in
prepared
nection with the
con¬
issuance of
mu¬
nicipal bonds, to confirm the le¬
gality of the bonds and their en¬
forceability by purchasers, and a
Sons, Baltimore
Francis R. Schanck, Jr.
Bacon, Whipple & Co., Chicago
Walter H. Steel
particular
across
the
of the original opinion. .
that in the in¬
copy
essen¬
desirable that the
tial and
_
of
/
holder's
Security-First National Bank,
Los Angeles
Stone, Jr.'
Trust
Company of
Western New York, New York
Thomas B. Summers
the
issuer.
bonds
Customary, until recent
been
to
deliver a certified
copy
of the
legal opinion with subsequent de¬
liveries of the bonds to purchas¬
ers; but
Bankers
in .1954
years,
the Investhient
Association
o£
America
and the Municipal Forum of New
Fahey, Clark & Co., Cleveland
Eugene D. Vinyard
Company of
Texas, Dallas
York
recommended
offset
that
photooriginal legal
copies of an
opinion be accepted
and
photo-
of
two
or
the
cover
more
bond
issue,
same
entation
-
attorneys
port.
the pres¬
opinion on
a
of
only
one
which had been raised from time
Francis R. Schanck, Jr.,
concerning the printing of
to time
& Trust
copies have been accepted,
in lieu of certified
investors
and,
we
copies, by most
believe, by all
Bankers
practice of printing copies of
legal opinions on some bond is¬
sues
would not adversely affect
they
were
Company,
Trust
New York
.
^
Pressprich & Co.,
Cushman McGee
R. W.
New
-
York
n
//-/'/vYx ;v x
.
Richard Morey
A. G. Edwards & Sons,
i
delivered by the issuer
initial purchaser; and
the
to
Chairman
W. Neal Fulkerson
the
Marsom B/
St. Louis
Pratt
Estabrook & Co.,
Boston
•
Franklin- Stockbridae
Security-First National Bank of
Angeles
..V
;'
.
offset
William J. Wallace
' '
Co.,/Chicago
Bacon, Whipple &
copies of legal opinion on bonds,
the Subcommittee concluded that
We recommend that, whenever
possible and practical, a copy of the marketability of bonds which
do
not
have
legal
opinions
the complete final legal opinion,
printed upon them, because bonds
with the name of the attorney,
should be printed
in a legible which did not have copies of legal
printed
upon
them
manner on the back of municipal "opinions
would be delivered to subsequent
bonds and the copy should be cer¬
purchasers
with a certified or
tified, -including a statement to
the effect that the legal opinion
photo-offset copy as is present
was
dated as of. the date of de¬ practice; that there is no question
livery and payment of the bonds, of mutilation, inasmuch as the
by including with the copy of the copy of the opinion would appear
on
the back of the bonds when
■■
SUBCOMMITTEE ON PRINTING
LEGAL OPINIONS ON BONDS
desirable.
considering various questions
In
■
Respectfully submitted,
the bond may not be
copy of the
bonds, would
further facilitate the handling of
municipal
bonds
by materially
reducing the work and expense of
obtaining and storing copies of
legal opinions.
direct
It has also
country,
and
has
unanimously the conclu¬
stated in this report.
The
proposal, to print
legal
opinion on
livery of the bonds to initial pur¬
buying
the
sions
deliver
a manually executed
copy of the
legal opinion with the original de¬
from the
.
reached
It is customary to
bonds.
chasers
Drexel & Co., New York
Franklin Stockjbridge
Company, Pittsburgh
ion, or a statement that a legal
opinion is orr file in an indicated
depository, would not be accept¬
able to a large section of the in¬
by the paying agent or an official
of the issuer to the effect that; dustry.^-;
We emphasize that it4 is
the copy is a true and correct
We recommend
institutional investors and dealers
of the legal' opinion is de¬
livered to each purchaser of the
J. Creighton Riepe
Mellon National Bank
manual signature)
< *
copy
Rand'& Co., New York
Central Investment
and'
investors
marketable), is
t
Paine, Webber, Jackson &
Curtis, Detroit
Marine
recog¬
by both
dealers
:/-/
Milo O. Osborn
Alex. Brown &
are
nized
York, New York
Marson B. Pratt:.'..
opin¬
(whose
'
Del mont K. Pfeffer
or
,
munici¬
by
pal
Austin, Hart & Parvin,
The
of
dling
»
William F. Parvin
I
me-
chanical de¬
The Ohio Company, Columbus
Fred D.
the
tate
Sons, St. Louis
Dennis E. Murphy
follows:
large volume of state and
municipal financing during recent
has prompted a review of
various steps which would facili¬
-
Harris Trust and Savings Bank,
Chicago
A
Printing Legal Opinions on
Bonds
.
S. Morrison,
the back of the
(with
on
certification signed
a
facsimile
...
Report of the Subcommittee
A. G. Edwards &
f
*
City
APPENDIX
(
Richard Morey
New
Company,
■
Thornton, Mohr & Farish,
Montgomery,
bond
Thursday, December 18, 1958
.
•
Kansas
Sidney J. Mohr, Jr.
York
'
' Inc., DenVer
Zahner and
Newhard, Cook & Co;, St. Louis
William
.
Victor H. Zahner
-
S. Mills
Andrew
New
E. Youmans
Pressprich & Co.,
R. W.
;
Bosworthj Sullivan & Company,
Seattle, Seattle
Cushinan McGee
of
National Bank
storing
opinion for
legal opinion
a
.
copied
legal
opinions' printed
oil
difficulties; arise
only copy of itial sale of municipal bonds by bonds should be complete copies^
the
the legal opinion is lost or is de¬
issuing r body there should and that abbreviations or' dele¬
continue to be delivered to initial tions of material therefrom would
livered to a purchaser upon the
sale of a part of a block of bonds
purchasers, at the time of initial not conform to desirable practice.
We
also
emphasize that the
leaving the holder without copies delivery,
a
manually executed
for delivery with the balance of .copy or copies of a final unquali- adoption of the practice of print¬
the bonds' held. :'V*-: v, *;, / "X i
ing a copy of legal" opinions on
Jie<Flegat:opi^
We also recommend that in sub¬ bonds
should not - preclude any
In 1957 it was proposed that
the legal opinion be printed on
sequent
transactions
in
such dealers or investors from request¬
the municipal bond to which it
bonds good delivery may be made ing, as a matter of right when
pertained. This proposal was dis¬ with either (a) a copy of the com-^ municipal bonds are delivered to
cussed at the I.B.A. convention in plete final legal opinion printed them, that the bonds be accom*1957 but no action was taken at legibly on the back of the bonds, panied by a certified copy or a
that time, largely because several
unless
the
purchaser
of
such photo-offset of the original legal
bond attorneys expressed concern
bonds specifically - requests a "cer¬ opinion, if the purchaser prefers
about certain aspects of the pro¬ tified or photo-offset copy of the such a separate copy.
cedure. At the Spring Meeting of legal opinion, or (b) a certified or
During the development of this
the I.B.A. in 1958 there was fur¬
photo-offset'.. copy
of M the : legal report considerable interest in ite
ther discussion of the proposal; -opinion,
progress has been Expressed by
and it appeared that most of the
The printing of such copies of several organizations and associa¬
concern
previously
expressed, •legal opinions upon* the reverse tions in closely allied fieldsv The
with respect to printing the legal
side of the bonds, with the name tenor of these inquiries indicates
opinion on a bond with a manual of the attorney, should be in type general support of the conclusions
or facsimile signature of the bond
of sufficient size to be legible.
of the Subcommittee:
While recommending that the
The
Subcommittee wishes / to
'attorney (so that the legal opin¬
ion would, in effect, be an orig¬ practice of printing legal- opin¬ acknowledge-the substantial", and
inal opinion on each bond), was
ions
in
this manner should be in some instances vital, contribu¬
not
applicable with respect to adopted as widely as possible and tion made to its work by several
printing on each bond a copy of practical, we recognize that in bond attorneys, as well as repre¬
the legal opinion (including the some cases the length of the legal sentatives of printing firms and
name of the bond attorney)vcov¬
investors.
Much
opinion (such as those concerning institutional
and/or credit also is due to Mr. Gordon
ering the entire issue. A Subcom¬ certain revenue bonds)
mittee v consisting
of the under¬ the need to use blank spaces on L.
Calvert,
Municipal Director
signed was appointed to consider the bonds for registration or other and Assistant General Counsel of
this proposal and make appropri¬ legal requirements might make it the
I.B.A.,
whose constant;, co¬
ate recommendations to the Mu¬
impossible
to
print in
legible ordination and active participa¬
nicipal Securities Committee.
type a complete copy of the legal te^ made the final results posThis
Subcommittee has
care¬
opinion on bonds.
- -'
;.\x
sible.
.' V
fully considered the new proposal,
Also, in some cases where there
A
proposed resolution in ac¬
has discussed it with a represen¬
is more than one legal opinion for
cordance with the foregoing con¬
tative
group
of bond attorneys, a single issue, that is the opinions clusions is attached to this re¬
and
Chicago, Chicago
Murphey Favre, Inc., Spokane
Willard Maxwell'
First
the . legal
in
each issue of bonds held by them,
George B. Wendt .-t:
Dillon, Union ' "
Securities & Co., New York
problem
general
when
Donald S. MacFadden
of
Dealers and investors still have
Report of IB A Municipal
®
deal
V\
clerical work.
.
Los
-
resolution
of
Text
regarding
printing copies of Legal Opin¬
ions
on
state
and municipal
Bonds as adopted by the Mu¬
■
'
that
nicipal Securities Committee of
forgery or other fraudulent prac¬ /the Investment Bankers Association of America, November,
tice
in
the
issuance
of
bonds
1958. /v:-.'
v" •« " ;.v->
where copies of opinions appear
there
is
more
no
possibility- of
,
on
tains.
We
back
than
:•
the
/•;'
feel
.that
presently
ob¬
WHEREAS, . it is
commonly
accepted
•
•/"/,/
the
to
suggestions
proper
practice
DISTRIBUTORS
Municipal Bonds
For More
Than Fifty
BROKERS
Years
Effective Distribution in the
Third Largest
•
Nation's
Trading Area
&
THE PHILADELPHIA NATIONAL BANK
Company
Members:
New York Stock Exchange
American Stock Exchange
•
Philadelphia-Baltimore Stock Exchange
1401 Walnut Street,-
New York City
Philadelphia 2, Pa.
Lebanon
-
<
•
-
LOcust 8-1500
Atlantic City
and
in
of state and mu¬
in
UNDERWRITERS
sale
nicipal. bonds by the issuing
print excerpts of the legal opin¬
Dealers
initial
Vineland
body
Volume
>!
188
Number 5804
-ato-deliver to the
-
initial
f- ers, at the time of
-»payment for such
;
The Commercial and Financial Chronicle
.
bonds,
*
,
>
bonds;
/-./
-
,//;:/
WHEREAS, in subsequent transactions in such bonds it is desira
-
of
first*- the
:Vr/>,;fih
/ building
or
of
State
election
set aside for
or
-assure
Construction
Of
Program
Bond
separate document
as a
certified
"a,
c-opy
■
or;
photo-offset
Act
of ^the / legal opinion invelvet considerable work, expense
and. inconvenience
in
obtaining
;and storing suGh copies; ./
:,
*; copy
*
-
•
WHEREAS^ the printing, of p
: final/legal
opinion, with the name of the at!
torney, on the back of a state or
Vf
/copy/of the complete
'
-
icipal- bond wotild diselose to
f purchasers of such bonds all inmun
in
formation
.
would
and
the
legal opinion
materially reduce the
approved at the election-
/:5 ;
on
limits
the
bonds
thereof,
any
said
under
of
of
to
the
pay
due
/
be of interest to
persons
engaging in the municipal
securities business, .;, i f
"/
Si
available
face
any
thereon.
All
COURT >
authority of^the State of Michigan
property- and real
property owned by the Federal
to. tax personal,
to the holder of
or
Government
of
such purchases-and payments are
to continue for so long a& the dis¬
SUPREME
• In March, the Supreme Court
of the United States sustained the
,
amount
such bond the interest due
become
to
,
or
at
to
notice
therefrom to purchase
come/
such
or
act shall be
first instance to
Division
or aipon
moneys,, use said fund and the in¬
;
received
the
51
but
used
corporations in the
by, private
of their
course
'
business.
;
"/
In City of Detroit v. The Mur¬
municipality is unable to
payments, but no such ray Corporation, the Coui*6 sus¬
purposes,
the
then to capital outlay for school ^purchase or payment of interest is tained
levy of a personal
tax
by
Detroit
and
purposes and finally to the capi¬ to bp made unless the sums avail¬ property
able to the district as State build¬ Wayne County on all the parte,
tal/reserve fund of the school dising aid shall be insufficient for materials, and: work in process
trict created under said act.,
V
such
'
delivering
v
/"
municipality
building aid
board
of
education
nicipality y for,
-1958)//and* this1 authorisation
was
within
board of education
a
-
.
WHEREAS, the present: prac¬
tice in subsequent transactions of
J
sums
applied in the
debt; service on bonds issued by
such
c
a
school
Nov. 4.
on
municipality.
of
Government,
and verification off such inability,
the Trustees? of- said fund shall,
the
.
(2)' That all
Aid Bond Law of 1958), and this
authorization was approved at the
the
and'' then
aid allowance then or
thereafter available to the district
legal opinion to
that
the
information
in
Assembly Bill 93 authorized, the
opinion is disclosed to each sale of $200,000,000 of bonds for
-purchaser; /// ■-;///; /////:/:/*;• the State Building Program (State
copy
interest
Director
Local
principal up to the amount of thfe
$220,000,000 of bo'ndk for
School'-Building Aid
Program (State School Building
.
the
bonds, paying rat¬
ably tb the holders of : such bonds
Assembly Bill- 59 authorized the
sale
the
;able to deliver to each purchaser
,
terest-oh such
interest to
CALIFORNIA
r; i
recognized? bond attorney whose
//opinions- are widely arid "generally
L accepted by ." purchasers of such
>
be* of
persons engaged in*. ihfr niunicipal securities btmnesst
[
a manu-
a
=•:
believed; to
*
-
ally executed copy or copies of a
-final, unqualified legal.opinion of
t
tioh adopted in 1958 which is
purchas-
delivery of and
(2567)
or
.
trict
mu¬
or
T
-
make such
school
the. purpose. ; The fund will: initially consist of about $16,000,Assembly Bill 104 authorized Laws of 1958 of New Jersey, was
r--':
the financing of hospitals under adopted 'contingent, upon the ap¬ 000./ / - /
NEW YORK
the
Hospital
District
Act,! by proval. of a' /proposed constiturA proposed State constitutional
lease-purchase methods, funds for tiorial amendment. The propose^
the lease payment to be outside of
/constitutional .amendment was ap- .amendment,: which passed the
/the' taxlirnh/
proved' at the election oh Nov. 4 'New York Senate and Assembly
in the Bill" appear to restrict the "and
provides that the bonds of :in 1958 and must be referred to*
applicability of the Act to certain any school district of .the Stafe of the first regular legislative* session
New Jersey, issued according. to
/hospital districts.
convening in 1959 for approval,
Assembly Bill 116 authorized law, shall be proper and secure would provide for State guaranty
investments
for
the
Constitu¬ .of the-payment of principal and
the
sale
of $50,000,000
of San
'
Nov. 4.
.
■
;;/*/"
-•
''
....
■'' /.'
»
/' /:
Chapter 126/ of the Pamphlet
acquired
ration
.
•
.
Francisco
Harbor
obliga¬
Bonds,
tional fund, for thd support of free .interest
on
bonds
and
other
obli¬
in
ment
.
''
by
the Murray Corpo¬
performing a / govern¬
for
airplane
parts.
Under the contract, title
to the items acquired
by Murray
in performance of the sub-contract
,
'
.
sub-contract
'
passed:
the
to*
ment,
Federal
Govern^
though
Murray retained
The Supreme Court
; possession;.
concluded that the tax
was a "levy
private party possessing gov¬
ernment property which it ■ was
using or processing in the course
on a
of its own business.''
/
•;-/>
California, "public schools and the fund and gations issued by schopl districts
J/;. In 17. S. and Borg-Warner Cor¬
obtaining and storing addi- and also authorized the sale of the / income thereftom Or other after the effective date. The pro¬
poration v. City of Detroit, the
$10,000,000 of bonds of the State moneys appropriated" in support posal would provide for recovery
/ / -tional. copies of legal opinions; ?
Court sustained a real
property
for
development of local small of- free public schools may be. used .of any payment of ^such principal
^
N OW,
THEREFORE, BE IT boat harbors (Harbor Develop¬ in such mariner as the Legislature /or interest by the State from the tax on property owned by the
RESOLVED:
.school district primarily liable on Federal Government but leased to
ment Bond Law of 1958), and ,this may
provide by ' law to secure
a corporation for its own
Use; and
//;-/ (1) That, whenever possible and .authorization was approved at the payment of principal and'interest dhe bonds or other obligations,
concluded that the tax Was one
oil/ bonds "or
notes
issued
for
election on Nov.: 4.
The * New</ !
York >• Legislature
'/,
://
practical,, a copy of the complete
imposed "on a party using taxfinal legal opinion, with the name
Senate Bill 7 authorized the sale school'purposes by counties, mtir ^adopted a bill to create a New
exempt property for its own bene¬
of the attorney, should be legibly
of/riot to exceed $300,000,000 of nicipalities or school districts, or .York-New Jersey Transit District
ficial personal use and advantage."
printed on the back of municipal bonds for the Veterans' Farm and for. payment or purchase of' such .with power to build and operate
/'work,
t
of
expense and inconvenience tions
of
State
the
,
.
,
•
v
"
Home
bonds- and the copy
tified;
dated
was
,
should be cer¬
statement to
that the legal opinion
including
effect
the
as
of
sation
a
the
date
of
tion
Program, and this authori¬
was approved at the elec¬
Nov. 4..
! "/■ .,
- ;
17'
ballot,
proposed
sales tax
rates
in
a
the
reduce
to
by one-third,, and
the
income
state
brackets.
certain
California
statement
November
1953
the
on
increase
to
tax
The
adopted
Group
opposing Proposition
seriously im¬
17 because it would
of the original opinion.
pair the State's credit in the bond
market.
This proposal was de¬
That in the initial sale of
state and municipal bonds by the
issuing body there should con¬
(2)
feated
vide:
certification to the
Treasurer
by
the
State
(1) That
State
on
Commissioner
Director
the
the
V;//•//.
■
Education
of
of
*
,
pay¬
county super¬
intendents of schools and payment
of accrued iriterest on bonds pur¬
chased by the
fund, shall be used
for the payment of interest on and
the purchase of bonds issued; lo¬
cally for school purposes.
The
legislation also provides that in
event that
a
school district
or mu¬
for
bonds
issued
of
after
the
.
of
made
Connecticut
in
1946
(KRS
103.200103.280) authorizes the issuance of
bonds
by
cities
for
industrial
New York
join. Under the bill
and New Jersey would
appropriate
$150,000
each
an¬
nually for the first five years to
cover
operating expenses.
The
proposed rail loop estimated to
cost about $500,000,000 would link
New Jersey
commuter railroads
with Manhattan through new tun¬
at' 50th
nels
tery.
,
Street and the
APPENDIX
Bat¬
/■ /
■//■/,/:/■'.';; :/
;
This
maries
C
are
Another
law
adopted
(KRS Ch. 58) is a com¬
prehensive statute authorizing (as
stated in the title) "the acquisi¬
tion,
construction,
extension
public
or
(
and
maintenance,
improvement
leasing
thereof*, by
govern¬
units, agencies and instru¬
project
by
any-
on
page 52
of
or
municipality antici¬
that it will be unable to
the principal or interest of
bonds hereafter issued for
purposes,
or
on
proper
and verification / of
such
inability, the State Treasurer; shall
This appendix contains sum-
■;,i,maries of some State legisla-
from
thereafter
.available
aid
such
under
cient to pay the
then
sums
~
or
building
as.
a sum suffi¬
principal and in¬
act,
Underwriters,
Drexel
Distributors,
i
'
I!
Established 1838
t
Dealers in
Underwriters and Distributors
CORPORATE AND MUNICIPAL SECURITIES
of
Public
Utility, Industrial and Railroad Securities
*
State, Municipal and Revenue
1
Obligations /
Established J 910,
1
Members
New York Stock
American Stock
Exchange
.
.
Exchange (Assoc,);'
Philadelphia-Baltimore Stock Exchange
Philadelphia h
1500 Walnut St.
-
-
.
B utcher
.
r
&
Sherrerd
IIIUIPH.
1500
WALNUT ST., PHILADELPHIA 2, PA.
New York 5
PEnnypacker 5-2700
30 Wall Street
Members
New York Stock Exchange
•
•
•
•
Phita.-BalKu Stock Exchange' • '•
Teletype.- PH-4
^
•
New York BArclay 7-4641
Anerican S'ock f*cJrong«-(Assoc.)
•
•
•
ac¬
public
condemnation^, and
Continued
believed
a
district
school
of
projects, and the renting
pates
pay
un¬
kindred
1946
quisition of property for
appendix contains sum¬
of some recent court
which
in
certain
mentalities; providing for the
Court Decisions
decisions
and
conditions.
mental
effective
Education
tucky
employment and
legislation and upon
certification of such inability to
the Trustees of said fund by the
of
inclusion
of
Transit
was
building in order to relieve
the
Commissioner
Rapid
Provision
if it wishes to
nicipality anticipates that it will
payment of
principal or interest on any of its
date
the
recommendations
KENTUCKY
Henderson, Kentucky v. Robert
E. Todd. An act adopted in Ken¬
Local Government that any school
withhold
,
support of such schools,
ment of salaries of
car¬
and
Division
the
the
for
use
be unable to meet the
Pamphlet
Laws of 1958 of New Jersey, ef¬
fective July 17,,1958, amended the
School Building Aid Act to proof
127
schools, in addition to its
the
The bill
.
State Legislation
,
4.
NEW JERSEY
Chapter
notice
;
Nov.
on
'
tions in such bonds good
APPENDIX B
the election
at
tinue to be delivered to the initial
'
legislature.
Commission.
that; the copy is a true and correct
of the legal opinion.
Jersey
out
I.B.A.
copy
a bi-state transit loop, but it also
/requires- the approval of the New
Metropolitan
"
/
in¬
for
;/:.
the
official of the issuer to the effect
purchaser of such, bonds specifi¬
cally requests a certified or photooffset copy of such legal opinion
or (b)
a certified or photo-offset
claims
or
ries
State
,
(3) That'in subsequent transac¬
delivery
may be made with either (a)
a
copy of the complete final legal
opinion, with the name of the at¬
torney,
printed legibly on the
back
of the bonds,
unless the
notes
sition
de¬
purchasers^ at the time of initial
delivery
a
manually
executed
copy or copies of a final unqualified-legal opinion.
or
thereon.://'v/'
Chapter 126, effective Dec. 4,
A proposed amendment to the J 958
provides-that the income of
Constitution of California, Propo¬ rthe fund for the
support of public
livery and payment of the bonds,
'by including with the copy of
the legal opinion on the back of
the
bond a certification
signed
(with, a facsimile or manual sig¬
nature) by the paying agent, or an
copy
bonds
terest
on
Boitoo.Svxk Exchange (Assoc.)
Chronicle
The Commercial and Financial
Thursday, December 18,1958
.
tain from an industry as its sub¬
specified
Report oMU Municipal
free
revenue
projects, and the use of tax rev¬
enues
and other funds for such
ture
statute
City's gas distributing plant to
the payment of the bonds if it
should be needed. A suit f ilgd by
simply "that the proposed venture
is not authorized by the statute
under which it was being under¬
adopted in Minnesota, ih
1955 ana 1957 appropriated money
Acts
the bonds.
a
The Trial Court con¬
conditions
contemplated transactions
cluded that the factual
and the
indefinite and economi¬
so
were
cally unsound that the Court was
not
authorized to approve the
venture as
being for a public
pointed out that the
specifically
alone to industrial buildings
not authorize the use of tax
for the
funds
other
and interest of the bonds.
liquidation of the bonds to be
issued," and that the second stat¬
ute authorizing the use of funds
or
revenues
City
to
a
lic
project," it cannot be regarded
as
such when it comes to financ¬
as
by
ized
payable only from
such taxes, except that payment
of interest may be made from the
general revenue fund subject to
reimbursement from the proceeds
'V;k-.".-
Court
The
of
Appeals
of Ken¬
of
tucky on July 11, 1958, noted that
it
not
did
that
appear
was
case
upon
Trial
actual
shall levy
ficient
The
decision
may
pointed
revenues,
the
proposed to be exe¬
that
out
the City of
the
use
to
pay
Industrials
for
City from its electorate sys¬
state
is in order"
financing
sums
as
and
commented that the spbcial-fund
financing
of
type
abused that it
evading the
subterfuge for
of constitutional
pose
limitations
that
and
provision
so
pur¬
state
debt
constitu¬
a
which
has
that
outmoded
so
be
may
becomes merely a
be¬
only
an
ever-increasing application of le¬
gal ingenuity makes it workable
of
meeting the modern needs
in
state finance should be amended.
contract
is
there
nothing
constitution which
state
in
pro¬
irre¬
legislature from
the
or
state's power
the
away
taxation,
hibits
suspend,
surrender,
not
legislature
the
(2) Although
may
power
provide the funds necessary to
to
obli¬
fulfill the state's contractual
gations to pay money.
year,
of such tax levy ing
sufficiently
amounts
in
shall
additional
improvements," works which
are
succeeding
to
years
debts for works of "inter¬
any
nal
auditor
the
essential
reasonably
of
performance
the
to
the
state's gov¬
an
Minnesota
seems
posed
into
a
us
of
a
tion
municipality to
contract with
corporation for the joint
sought
Auditor
pri¬
a
Stafford King, State
Commissioner of Administra**
the
beyond
be
v.
Auditor of the State of Minnesota,
this pro¬
that
would
scheme
powers
enter
to
to
certificates
ac¬
to
tary undertaking for
as
a
State
true
sell
the
pose
indebtedness
au¬
is
compel the
and
issue
of
possibly be operated as a proprie¬
profit, such
parking lot, and this holds
long
as
not
as
the primary pur¬
incidental activity
such
of
to ^obtain
revenue
but to
Utilities
Distributors, Dealers, Underwriters
i Corporate & Municipal Issues -
•;
-1-.
-
M. Kidder & Co., New York
Members New York Stock Exchange
Philadelphia-Baltimore Stock
DeHaven A TOWWWI. Crouter & Bodhk
Exchange
■
•
•
■»
-
ESTABLISHED
1874
~
"V-'--'.-
•
MEMBERS
NEW YORK STOCK
EXCHANGE
1
AMERICAN STOCK EXCHANGE 7
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
Sunbury
Johnstown
Bethlehem
:"'V :: *
-
Lancaster
Easton
Pittsburgh
'*
■ ■
>
PHILADELPHIA
PH 80
8-3400
for
(3) While the state constitution
any
levy
is authorized
JANNEY, DULLES & BATTLES, INC.
Teletype System
LOcust
authorized
tax
Pennsylvania Tax Free
s
f
Philadelphia Telephone
a
that
the
year
Direct Trading Wire to A.
Bell
of
lection
prohibits the state from contract¬
in the proceeds
such as pledged by
tem and other funds,
DULLES & BATTLES
.ulill'j,
Telephone
fund, the proceeds of which are
derived from the levy and col¬
certificates of indebt¬
City-County-State-Authority Issues
York
legisla¬
a
and, in case of a deficiency
edness
vate
WOrth 6-5646-7
pursuant to
acf which makes them ex¬
clusively payable from a special
of
be necessary to pay the in¬
terest upon
Court
Common and Preferred Shares
New
issued
and
auditor vocably binding its taxing
state
the
produce such
The
of
r
inarkrt
of
authorized
are
tive
the
additional amounts suf¬
to
that
the
I !
that
holding
the
Court
Bank and Insurance Stocks
I I \
meaning
indebtedness
the
for
fixed amount, the Acts
a
provide
the scheme would be illegal.
of
providing
levies in
of facts.
affirmed the
then
Court
"It
; U
the
of
tax
under
levied
taxes
After
indefinite and
an
hypothetical state
It was
an
the
Acts.
and that the
controversy existed
interest
and
of the City and not
contract or by law
-
Fund.
The
a charge and
lien upon the tax levy author¬
in each Act, with principal
a
cluded:
Call JANNEY,
within
constitution when certificates
ernmental functions do not lose
annual rental by Chapter 58 (referred to above compensate therefor until the full
in the Henderson case) where a amount authorized has been raised. their governmental status or char¬
option may from year to
In
Naftalin, Commissioner of acter because they incidentally
be automatically renewed "public project" is financed under
of the State of embrace some activity which may
that statute, and the Court con¬ Administration
Corbin
broad sense, a "pub¬
Building
certificates are to be
State
the
not
be devoted to some other pur¬
pose."
it
cuted would obligate
relief of conditions of unemploy¬
is, in
use
instruments
quire industrial pronerty for the
ment
and
(1) A state indebtedness is not
the
tax levies are to be
the
tax revenues available for gen¬
required
hoped that some industry would
sub-lease the property from the
available for gen¬
system
eral purposes
during the 20eral purposes deals with "public year life of the bonds and thereby
projects." The Court stated that, reduce unemployment in the City.
The plan set up in the several
while acquiring or aiding to ac¬
tax
or
,
created
Proceeds of tional
paid into come
thorized by the Act.
or would ob¬
municipally owned
its
already re¬
quired by contract or by law to
be used, and also to apply to the
same
purposes
"all other funds
the prop¬
erty and use the proceeds for the
acquisition, remodeling and im¬
provement of the property. The
Corporation would lease the prop¬
erty to the City for the period, of
one year with an option to renew
from year to year for a period of
years at such rentals as would be
sufficient to retire the principal
statute "relating
or
public
of
variety
a
buildings and provided that cer¬
tificates of indebtedness may be
it may have
from
electric
cured by a mortgage on
Court
revenues
of
decision
granted
that ""a word of caution as to future
tain
and
the
Corporation
would issue $75,000 of bonds se¬
its gas distributing plant
payment of such bonds. The
City appealed.
\
■/.kv
The Court of Appeals of Ken¬
tucky on July 11, 1958 affirmed
the decision of the lower Court.
does
repair
inits
sota
1958
particular purpose. In con¬
nection
with ; this
holding, the
State Supreme
Court suggested
enues
by the Corbin
poration
from
and
construction, remodeling and
the
_
the
Industrial
Building Corporation would be
legal and valid. Under the plan
the City would deed certain prop¬
erty which it owned to the Cor¬
be issued
to the
The
Building Fund for
from the State
the certificates.
The Supreme Court of Minne¬
bonds;
to
that bonds proposed
and
pose
that the proposed plan
was not a "public project" within
the purview of Chapter 58 under
which the procedure was taken,
and that the City had ho power
to
pledge the
surplus revenue
purpose,
first
the
(5) to take good care of issued as funds are needed, sub¬
property and in the event of ject to the limitation that the cer¬
its
destruction, to continue its tificate cannot exceed the au¬
taken."
obligations of paying the annual thorized aggregate appropriation.
The Acts provided a detailed plan
City of Corbin v. J. D. Johnson. rentals; and (6) in event of de¬
replenishing
the
building
The City of Corbin brought an struction to reconstruct the build¬ for
action
Moreover, the City would fund by imposing a tax levy over
against a representative ing.
a period of 20 years in an amount
taxpayer for a declaratory judg¬ enter into a pledge that to fulfill
ment
that a proposed plan for all its obligations under the lease sufficient to equal the amount of
relieving unemployment in the contract it would use, to the ex¬ expenditures plus interest on the
City would be for a public pur¬ tent necessary, all surplus rev¬ certificates of indebtedness au¬
declaratory
judgment to validate the plan and
sought
City
the
without
available
be
would
the two Acts.
The
challenged the consti¬
on
May 9,
judgment on the
for it is not pleadings for the Commissioner of
y
pledged will Administration, holding:
revenues
even
plunging the city into a maelstrom
:;
) >
y
to pay all taxes assessed against of illegal debt."
the property; (2) to pay all in¬
MINNESOTA y;;yyy
come and ad valorem taxes which
quisition of an existing industrial
plant and the issuance of bonds
to
finance
the
purchase.
The
ordinance provided for the pledge
of the surplus revenue from the
an
or
shown that the sums
Corporation would refund to
the bondholders; (3) to pay pre¬
tration of government agencies miums upon fire and windstorm
and
which is within their re¬ insurance; (4) to furnish $6,000
spective
governmental or pro¬ in cash prior to or at the time
prietary sphere of action," and the bond proceeds might be re¬
that
it
was
sufficient to hold ceived from the purchaser of the
Henderson adopted
ordinance authorizing the ac¬
The City of
a
revenues,
for the current year,
or
to sell
:
City would obligate itself (1)
the
con¬
(Chapter 58) in the term "public
project" comprehends "property
which is or may be owned by
and connected with the adminis¬
supplied)
(emphasis
projects."
Court
second
the
that
cluded
The
bonds.
mitments by
obligations the City
be assuming. In addition,
would
the issuance of
by
of same
ing
and com¬
municipality of fu¬
lating to the obligations
tas
other
the
the issuance of tax
revenue
bonds for: public
construed
binding the City for the annual
rentals beyond the current year,
there is no such limitation upon
Securities Committee
authorizing
be
shall
therein
constitution
the
nothing
that
by
defendant
tutionality of the Acts and refused
particulars violate
and statutes re¬
also "in many
contemplated
the
While
lessee.
lease
thorized
quisition and operation of a pub¬
lic enterprise" and that it would
might ob¬
out of the revenues it
Continued from page 51
i
..
(2568)
52
\
..
7
'
V,
>
_
PHILADELPHIA 10
LAND TITLE BUILDING
Camden, New Jersey
WILKES-BARRE, PA.
NEW YORK
Since 1890—Underwriters,
.
.
.
STAMFORD, CONN.
Distributors, Dealers, Brokers
UNDERWRITERS AND DISTRIBUTORS OF CORPORATE AND
MUNICIPAL SECURITIES
EST. 1914
Boenning
&
Co.
Members
M
;
.
Philadelphia-Baltimore Stock Exchange
1529 WALNUT STREET
American
PHILADELPHIA 2, PA.
Bell
System
Teletype
■
'
PH- 30
'
Telephone -LOcust
'
'
8-0900
Stack
Exchange
,
115 BROADWAY
NEW YORK CITY 6,
Private New Yorh
11
f
N. Y.
Telepheae COrtIand»7-l 20Q
•
^
i
"*
•
'
i
Volume
188
Number 5804
.
.
.
(2509)
The Commercial and Financial Chronicle
»'
•
further
the
ernmental
discharge
of
function.
furnished to
be
gov¬
a
T
not
APPENDIX I
purchaser of
the
We appreciate the co¬
the bonds.
^
Statement by Walter WV
operation of the municipal officers
Craigie, Chairman, Liaison
The Report of Liaison Sub- i
and bond attorneys in this de¬
Committee, Municipal Securi¬
committee follows:
sirable practice.
L v;
7ties Committee, Investment v
On Aug. 24-26 at the Annual 7, Bankers Association of Amer;
The general purpose of this
Subcommittee is to work with Meeting of the Municipal Law
tea, at the 52nd Annual Con¬
other organizations on problems Section of the ABA in Los An¬
ference of the Municipal Fi¬
of mutual interest in
nance
geles,
the
Chairman
and
two
municipal
Officers Association,
members
of
the
Subcommittee
financing,
Milwaukee, Wisconsin, June 9,
attended another joint meeting of
principally
,1958.
the Municipal
the liaison committees. There was 7? A
No-Litigation Certificates'; ]J;Ci
Finance Offi¬
brief discussion- of no-litigation
The Municipal Finance Officers
cers Associa¬
certificates at the general meeting
Association,, the. Municipal /Law
of
the
Municipal Law Section,1
tion, the Mu„
.
be obligated to take
delivery
litigation
at the time of delivery affecting
the validity of the bonds.
There
-
..
vide
1
ligation
concluded to make
hieipa 1 Law
i
but it was
Section of the
change in the resolution adopted
on that subject by the Municipal
Law Section in New York in 1957.
American Bar
Association,
and the Mu-;
f
recommended
Section
the
Committee
Liaison
IBA
The
hicipal Forum
no.
of
some
'
of New
On
minor
York:;
12
Feb;
judicial determination of the Va¬
lidity of municipal bonds and (b jf
the model form of bill authoriz¬
joint- meet¬
ing of the liai¬
a
commit¬
son
tees
in
Walter W. Craigie
ing the use of facsimile signatures
and
seals
in
the1 execution
of
held
was
New
York
City attended by five representa¬
public
tives
securities.
mended
of
IBA
the
Liaison
Sub¬
committee, five representatives of
the
M.F.O.A., eight representa¬
tives of the Municipal Law Sec¬
-
tion of the American Bar Associ-
tion, four
Municipal
representatives of the
Forum of New York,
and five other guests. The princi¬
pal topic of discussion at this
meeting was no-litigation certifi¬
cates
regarding municipal bonds.
On
•
June
9
the Annual Con¬
at
ference
of
waukee
there
M.F.O.A.
the
in
Mil¬
another
joint
meeting of the liaison committees
was
and-^a panel discussion of
"nolitigation certificates." The panel
members included the. Chairman
and
four
members
this
of
Sub¬
committee
(Messrs. Browne, Cal¬
vert, Ergood and Linen).
The
statement presented at the panel
by the Chairman of this Subcom¬
mittee
Appendix I)
recommended
(in» accord
with
recommendations of the Municipal
Securities Committee of the IBA)
that, to obtain the best bids on
municipal bonds by assuring bid¬
ders
to
(attached
able
tween
bers of the staff and
liaison
ABA, and the Municipal Forum of
New
We believe that
York.
tinued
cooperation
con¬
between
the
liaison committees of these organ¬
izations
do much to facilitate
can
successful
municipal
:
W.
the
issuer and
provide
in
notice
the
(by
of
the
a
sale
under¬
or
in
that the obligation of
the underwriter to take delivery
of the bonds is subject to delivery
form)
no-litigation certificate, in
addition to delivery of an un¬
directs
,
attention
large
a
to
the
percentage
include
a
Any challenge of the
valid
Association
a
few
model form
a
establishes
bond
a
(in.
which
.
,
Ergood, Jr.
a
lated
lenging fhe validity; of the bonds
and in these cases the underwriter
relieved of his pbli^
take deliveryr of ;'tlie
bonds because the contract With
gation to
Bank,
desirable
be
may
to
omit
better
A few such situations in recent
without impairing the effectivencss of the general procedure
or
scious
have made underwriters
of bidding (or acutely con¬
of the extra risk in bid¬
ding)
on
the achievement of the desired re¬
tablished
sections of the bill in
those
but
sult.
For
changes
some
example,
a
states,
years
made
wary
be
can
simplified
version of the model form of bill
Virginia
in
was
adopted
copy
is attached
Where
and
tain
of
a
the
which
final conclusive validation
bonds
will
prior
issuance
to
underwriters
assure
and investors that they
are
The
will
issuer
receive
New
buy¬
clear
that
the
underwriter
to
obligation of the
take delivery of
the bonds is conditioned upon de¬
livery at the time of closing of
both
(a) an unqualified approv¬
ing legal opinion by a
Continued
ing valid obligations of the issuer.
on
Co.,
York
The Northern Trust
Company
the Dow-Jones
Bosworth, Sullivan & Company,
Inc., .Denver
When Stroud &
Company was founded in
Industrial
well above the 500
In the 38 years
*
War and wide
but
average was
Philadelphia in May, 1920,
around 90. Recently, it has been
level.
since our founding, we have
witnessed another World
security markets,
fluctuations in the economy and the
through it all we have grown and
prospered.
.
^
of experience and depth, we are ready ;
investment capacity.
Today, with an organization
to assist you
UNDERWRITERS AND DEALERS
in any
*
Industrial, Public Utility, Railroad and Real Estate Securities
Underwriters and Distributors
UNLISTED TRADING DEPARTMENT
of Securities in Ail Markets
State, Municipal and Revenue
Bonds
Equipment Trust Certificates
Public
Established
Bioren
1865
6-
Utility, Railroad, and Industrial Securities
Co
U D
ST R O
MEMBERS
stock Exchange
Stock Exchange
Philadelphia-Baltimore Stock Exchange
&
1424 Walnut
Street
120Broadway
Philadelphia 2, Pa.
New York 5, N. Y.
PEnnypacker 5-9400
BArclay 7-9300
page
:
Paul E. Youmans
specific statement
American
specified
Pat G. Morris
of
York
more
bids and better bids if it is made
is
legislation
such
issues where it is not es¬
that their obligation is
contingent upon delivery of a nolitigation certificate in addition to
an unqualified legal opinion.
a
Appendix 2,
as
im¬
adopted it will be possible to ob¬
ruin the marketability of
Therefore, the under¬
;
pending.
some
>
R. W. Pressprich &
■1 M
5 r
r -•
•
is ordinarily
matters) ,1 which
circumstances in each state and it
possibility that the bonds
price if, and in some cases an un¬
derwriter will not bid unless, the
contract with the issuer makes it
clear that the underwriter will
Company,
Cushman McGee
no-litigation certificate will
New
municipal
the validity of the bonds and re¬
be invalidated and may
the bonds.
The Chase Manhattan
which
the
will uqtissuehis r
unqualified approving legal qpih^ f
ion when there is litigation $pal- i ;
New York
notices of sale for municipal bonds
a
issuer.
writer will obviously bid a
John S. Linen
qualified approving legal opinion
by a specified bond attorney.
In this connection, the Subcom¬
that
wants
assurance
buying bonds which
binding obligations of
pair or
Company,
Incorporated, Philadelphia
a
mittee
is
he
validity of the bonds, even though
it
be
without
apparent merit,
may
San Francisco
the
addition to consideration of many
raises
Lester Empey
Stroud &
prepared
bill
cases
attorney
...
the
Bank of America, N. T. & S. A.,
Russell M.
Bar
years ago
most
bond
the
issuer specifically prttvidfes l v:
provides that the ' purchase is conthigeiit
that the final decree of the. court upon delivery of an unqualified -.
constitutes a permanent injunc¬ approving legal opinion by tfie :I
tion against the institution' by any indicated
bond attorney.: "Many
attorneys
recognize ihat
person of any action or proceed¬ bond
problems of mutual interest.
ing contesting the validity of the they have an obligation to the
Since one of the primary prob¬
bonds or the validity of the taxes, purchasers Of the bonds and state
lems of municipal finance officers
assessments, tolls, rates or other that when there is litigation at
is to obtain the lowest possible
levies authorized to be made for the date of. delivery, even though
net interest cost in the sale of the
payment thereof or the interest they believe that the litigation is
bonds of their municipalities, they
thereon or the validity
of any without merit, they will not issue
have always been receptive to
pledge of revenue or property to an unqualified approving legal
suggestions from investment secure such
payment.
This pro¬ opinion if the underwriter be¬
bankers for practices and proce¬
cedure would permit any person lieves that the litigation impairs
dures which would be helpful in
to raise any question 4 regarding the marketability of the bond.
providing lower net interest costs the validity of the bonds and re¬
However, in a few situations
to issuers and better protection
lated matters; but the final de¬ where there was pending litiga¬
for purchasers of municipal bonds.
cree
of the court would be con¬ tion challenging the validity of
This
discussion of no-litigatioh
clusive and would constitute
a
the bonds, which the borid at¬
certificates
is
directed
toward
permanent injunction against fur¬ torney believed to be without
that objective.
ther
litigation - (including "nui¬ merit at the time of delivery, the
A municipal bond underwriter sance
suits") attacking the valid¬ bond attorney proposed to deliver
buys municipal bonds to resell ity ol: the bonds and related mat¬ his unqualified approving legal
them to customers, just as any ters. A copy of- this model form
opinion; and in these cases a
merchant .buys
and
sells his of bill is attached as Appendix 'L serious problem has been raised
stoclc-inrtrade. A municipal bond
as to the obligation of the under¬
recommend adoption ofHhii
underwriter preparing to bid on
writer' 1 to take delivery 'of the
type of legislation.
The model
an
issue of municipal bonds (in
While the! litigation was
form of bill must be adapted to bonds
are
San Francisco
provision
procedures in municipal fir
nancing.. Even more effective co¬
operation should result from joint
meetings of the liaison committees
of the thfee orgamzations which
were
initiated in 1957 to discuss
that
Lynchburg, Va.
Trust
American
of
In
Municipal Law Section of the
Ctt-'
tificate
;V
..
Liaison Committee of
and
underwriter)
Co.,
Alan K. Browne
American
the
IBA
there may be consolidated all ac¬
tions
or
proceedings contesting
for; many years cooperated
in efforts to;adopt sound practices
particular bond,
the market for such bonds at the
time and the current money rate,
all of which affect the bid of the
Craigie, Chairman
F. W. Craigie &
The
bond Attorney .and, (b)
livery of a No-Litigation
•
have
the nature of the
SUBCOMMITTEE
LIAISON
nicipal Bonds
j
-
<
4 "v
Validation;; procedure
factors in the credit of the issuer,
financing.
Respectfully submitted,
Walter
Bankers
d
the ■■ Investment
Association1 of America
a n
Legislation : Providing
Final Judicial Determi¬
Ddiw., w«
Appiwfili:
a speeifM
.
com¬
mittees, as well as the general
membership, of the M.F.O.A., the
Municipal Law Section of the
as
(1)
legislation be
the states to provide
writer
that
ap¬
and
IBA
.
judicial determination
of the validity of municipal bonds
and (2) the contract of sale be¬
now
the
of
Appendix II of Appendix A and as
Appendix III.
In conclusion, this Subcommit¬
tee expresses its sincere apprecia¬
tion for the friendly and close
cooperation it has received
throughout the year from mem¬
final
a
fact
Committee
copies of the two model forms of
bill as changed are attached as
they will be obligated
delivery of only market¬
adopted in
of
been
have
changes
recom¬
proved by the Municipal Securi¬
ties
bonds:
bid
The
that
take
for
(a) the model
providing for a final
changes in
form of bill
Section of the American Bar As-?
sociation
Legal Opinion by
nation of the Validity of Mu-
*
'■
)
the
of
to Take Delivery of the!
.
they will be obligated to take de¬
livery of only marketable bonds;
a
the
7 j is Subject to: (a)
&
an
Unqu alified
t
for
Contra#!;*!''" •
the
in
! the Underwriter
•
two methods to pro¬
bidders assurances that
(1) Adopt
■:
Sale Between
are
to
><-.
r,
(2) Provide
of the bonds if there is
!
COMPANY,
123 South Broad St.,
N EW
r~-r:"'
YO R K
•
PITTSBU RGH
INCORPORATED
Phila. 9
•
PEnnypacker 5-7330
ALLENTOWN
'
*
LANCASTER
.'-'.A;
54
The Commercial and Financial Chronicle
(2670)
64
Continued from page 53
including
bonds,
in the
a-mo-litigation
"
certificate;
in
,
,
—-
which
Court in the county
.
such Issuer may
..
Thursday, December 18, 1958
.
vSECTION
3. The judge of the
Court wherein the peti¬
„
be lo¬
November,' 1956, the Munici¬ cated or have its principal place
Committee of the pf business, against the State ..of
Investment bankers
and the taxpayers, prop¬
Association;
recommended that the obligation erty owners and citizens of such
of " the ; issuer to debver to pur¬
Issuer,
including
nonresidents
chasers a no-litigation certificate owning property or subject to tax¬
be established by a provision in
ation tnerein, and all other per¬
tion
is filed,
ing
,
the
others
in
pal
bond
attorney
(b)
and
a
the
of
in
the
case
public sale can be achieved
a
(1) including a provi¬
to that effect in the notice of
by either
sion
sale with
provision that the terms'
of the notice of sale shall be part
including
(2)
contract or
the
of
a provision on the bid form!
Appendix 3 contains : suggested
appropriate provisions for inclu?
such
sion in the notice of
sale and the
bid form to establish such a con¬
the.
tractual agreement. In
case
of
private sale the contract of pur¬
chase may cover these conditions.
a
To avoid the
raising of any imag¬
inary "ghosts," to the effect that
inclusion in the notice of sale of a
requirement for delivery of a nolitigation certificate would pro¬
voke the filing of "nuisance suits,"
it might be pointed out that in
"The Daily Bond Buyer" of May
13, 1958 (selected simply because
it included an article regarding
this forum
no-litigation certif¬
on
than 12 of the no¬
specifically provided
that
a
no-litigation
certificate
would be provided to the pur¬
chaser of the bonds. Appendix 4
contains excerpts from those no?
icates)
more
tices of sale
ticcs
of
with
sale
furnishing
tificates.
respect to
no-litigation
of
the
If
issuer
the
cer?
for
some
prefers not to include such
provision in the notice of sale,
reason
a
the
contractual
desired
ment
ing
achieved
be
can
appropriate
an
arrange¬
by includ¬
provision
in
procedures
are
the bid form.
•
These suggested
already
common
importance
certificate
been
of
to
practice and the
the no-litigation
bidders
recognized.
entitled
bulletin
the
"Maiv
keting
requirement lor the unqualified
approving legal opinion and the
no-litigation certificate
In
no-
on
JitigucKm certificate.
Contractual agreement
has
*
long
" /
>
Municipal Bonds"
pub¬
by the Municipal Finance
Officers Association in 1946, the
section on "Advertising and the
Prospectus" includes in the list of
elusion
the
in
following:
"20.
A
;
statement
-
of
sale
July,
in
or
'•
-
-
interested
sons
the
issuance
in
or
the
of
the "Securities
Municipal
the
1957,
bid
the
•-
are
affected
Securities.
and
.
and
make
shall, upon the fil- ;
presentation ; Thereof,
issue ah order in gen¬
eral terms in the form of
directed
~
against/ the.
notice ]
a
State
of
/
and
against "all property
taxpayers, citizens: and
owners,
by
li¬
/having
right, title
to be Issued by
erty
or
claiming
or
interest in
any
,
any prop¬
funds to be affected by the
issuance of the Securities or «£?
or
of the State agencies, author¬
ities, commissions or departments, fected in any way. thereby," /re?
quiring,- in
may be filed in the
general
terms
and
Court of the county in without naming /them, all such4
to practices and definitions stated
which the proceeds of such Se¬ persons and the State of
therein, including a recommenda¬
1^/
tion that the bond attorney at the curities are to be expended or in
through its _i_—attorney <or
Court of the county attorneys of the circuit (or
time
of
delivery " of the bonds the
dis7;
should obtain from the issuer and
iq wnieii the seat of State govern¬ ttrict) wherein the Jssuer has 4t$
make available to the purchaser ment is situated, and such petition principal
place oL business, £0
a no-litigation certificate/.
: shall be brought against the State appear at a time and place within
Law Section of the American Bar
any
Association
adopted a resolution
urging bond attorneys to conform
the
:
,
that
In
for in?
advertisement
notice
form.'
lished
information recommended
Securities
there is
such petition
_________
litigation, pending or threat¬
ened, which concerns the validity
of
these
bonds,, the
corporate
boundaries or taxing powers of the
- and
the taxpayers,/
The advantages of the suggested of
issuer, or the Tight of the present
owners
and
citizens
procedure can best be focused in property
officials to hold their respective
including
nonresidents
realistic
perspective by a few thereof,
offices."
-..•••
;
<
owning .property or subject to tax¬
simple facts.
In
1957 sales 'Of
In 1950 the Municipal Securities
ation therein, and any other per¬
municipal bonds in over -6,864
Committee
of
the
Investment
sons affected
by or interested in
issues aggregated over $6,824^000,7
Bankers
Association
recom¬
the issuance of the Securities.
000.
In the first four months of
mended that municipal bond at¬
SECTION 2; The petition for
1958 sales of municipal bonds in
torneys and municipal finance of¬
validation shall briefly set out, by
over 2,291 issues aggregated over
ficers include in notices of sale
$2,960,000,000. In this great vol¬ proper allegations, references or
language providing that the se¬
ume of municipal financing there
exhibits, the petitioner's authority
curities are offered for sale sub¬
were
issuing the Securities, the
only a few situations in for
ject to the unqualified approving
which a controversy arose as to holding of an election and the re¬
legal opinion of a specified at¬
whether the underwriter was dblU sults thereof where an election
torney (ttfe cost of which will be
gated to take delivery of bonds is" required, the ordinance, reso¬
paid by the issuer, or by the suc¬
when the bond attorney was pre¬ lution or other act or proceeding
cessful bidder if that be the in¬
pared to deliver an unqualified authorizing the issuance of such
tended requirement) and that the
Securities and the adoption there¬
successful
bidder
will
be
fur¬ legal opinion although there was
of, all other essential proceedings
nished with said opinion and the pending litigation.
had-or taken and/or proposed to
In view or Che foregoing facts
usual closing proofs, which will
be taken in connection therewith,
include a no-litigation certificate. and statistics, it is sound business
the amount of the Securities tq. be
In
May, 1956, the Board ' of for issuers to obtain the advantage
issued, the rate of interest' or
Governors
of
the
Municipal of better bids in thousands of is¬
maximum rate of interest they are
Forum of New York adopted a sues by protecting dealers against
lo bear, .and, in case of a district
resolution recommending that, in a potential liability of being re¬
established for the purpose of con¬
order to establish the right of a quired to take delivery of unmar¬
structing or acquiring a public
purchaser to receipt of a no-liti? ketable bonds in one or two issues
improvement for which the Se¬
gation certificate, each notice of where there is litigation but the
curities
are
to
be
issued,
the
sale or purchase contract with the attorney proposes
to deliver an
authority for the creation of such
issuer
include
a
provision that unqualified opinion.
district, the ' consideration to be
there will be furnished without
Consequently, we hope that the
received by the Issuer for the Se¬
cost to the purchaser the approv¬ Municipal Finance Officers Asso¬
ciation will give positive support curities, the county or counties in
ing opinion of a specified bond
Which the proceeds of the Securi¬
ho
.
The
_
mated
-•
the
to
attorney
and
the
certificates, dated
as
usual
closing
Municipal Forum
of
New
ties,
York, the Municipal Law Section
of the date of
the
of
and
delivery <of and payment for the
American Bar
the
Committee
Bankers
Association
Municipal
thereof,
are
to be
in
their
(or/district)
order,/and show
why the prayers of the t per
tition
the
wherein
filed, to be desigr
such
should
be
not
granted and
proceedings and the-Securities
validated and confirmed
as there?
A copy of the above?
in prayed.
mentioned petition and order shall
be served upon the
attorney of the circuit (or district)
in
which
such
proceedings are
pending, and in cases where the
lies
Issuer
than
functions
or
in more
circuit (or district), upon
one
each _—attorney of each
of such circuits
(or districts) .at
least twenty (20) days before thq
time fixed in said order for hear-'
ing
as
aforesaid.
Said attorney
attorneys shall carefully ex?
amine the petition and if it ap¬
or
there is
pears, or
that
to believe,
reason
the
petition is defective, in¬
sufficient or untrue, or if in'.the
opinion of said attorney or at¬
torneys, the issuance of the Se¬
curities has not been duly author-?
ized, defense shall be made there¬
to
as
ney or
for
seem
may
attorney
the
or
attorneys shall have access,
purposes aforesaid, to all
records
Issuer
by said
Said attor¬
proper
attorneys.
and
and
proceedings
officer,
any
employee
matters.
sion, custody
Investment
Association
cause
in
expended, and all other pertinent
Securities
the
of
or any part
circuit
The petition is
having
charge,
or
posses¬
control of
or
the
of
agent
of
any
ef¬
forts
II a mb o, Close
to
facilitate
municipal fi¬
nancing by supporting (1) the
adoption of legislation providing
for a final judicial determination
of the validity of municipal bond?
and (2) the practice of
providing
Kern er
Incorporated
:
-»
'
in.the
'1
•
contract
the. "issuer
Corporate Bonds and Stocks
Authority Bonds
St., Philadelphia 2, Pa.
underwrite^
•
f
Determina-
DEALER SANDUNDERWI
or
1. .Any
county,
may
bonds,
hereafter
notes
or
of indebtedness
authorized
be
other
'
"* '
...rlril.l.liTtSl' 'Pf',
J'
'£■
J
may
file
a
petition for
validation for the purpose of ob¬
taining an adjudication as to its
authority to issue the Securities
and the legality of all proceedings taken^and/or proposed to be
taken in connection therewith; iiafcluding, in proper cases,_ any as¬
''4&.
Packard Bidg.r Ph,<arieiphiu 2
LOcust 7-$646
trom
NEW
sessments
*
TrteWpr PH 864
YORK—phone Enterprise d289
PTTSBUR^H—phone Zemtr
South Broad Street,
,
02?'
of
taxes
levied
or
to
levied, and the lien of subh
taxes, the levy of rates, charges,
or
tolls, and of proceedings/or
other
.
.
l
•
J
«
t
»
l
I
PARKE
I
i
Stock Exchange
*Philadeiphia
I
i
(9), Pa.
i
s
N.
Y.
Phones
REctor
•HAnover
Phila. Phone
Teletype
2-1695
PH
538
KIngsley 5-0650
2-4586
.?
^
V.5
SUPLEE, YEATMAN, MOSLEY
INCORPORATED
/
Underwriters
;
.
and /Distributors
of
■i
Investment Securities
"
Complete Trading Department
,
Bank Stocks and Delaware
.
•
■
.';'
Securities
c}
i'71
Specializing in
"
v
,
galley
w?
5
'•
!'
I
Dealers and Underwriters
Municipal
—
•
Public Revenue Bonds
be
-■
trorr
Members "Philadelphia-Baltimore
-
S3.
£
S CflftNDT, HUB EATS 8
indebtedness which it proposes to
issue (hereinafter called "the Se-.
curities"),
SCHAFFER, NICKER
High Grade Corporate Bonds and Stocks
(hereinafter called
ance
'■'<
I
I
>
«
'
evidences
the "Issuer"), prior to the issu¬
of any.' particular issue of
bonds, note^ or other evidences !of
.
*
mu¬
by law to borrow money and issue
m
I
Municipal Bonds,
pal Bonds and Related Matters
nicipality, taxing district or other
political district -or - subdivision
commission,-authorjty, department
or. other
public agepcy of this !
State, or of "this State and one br
more
other States, which is now
.
I
*
»
.
tioH-of theValidity of Munici-
.SECTION
ssisififiiiir
apd'General^
«
;
123
OF BILL
Provide for Final
•
VV
-
APPENDIX I
MODEL FORM
To
Pennsylvania
betweeij;
Markets
the
..
1518 Locust
the
and
Underwriters
T r ad ing
obligation ot the under-'/
writer -to 'take -delivery ef -bonds
is subject to delivery at the tilde
of closing of an unqualified legal
opinion by; a specified bond at¬
torney and delivery of a mo-liti¬
gation certificate.
that
Municipal Bonds
sale,
of
Retail Distributors
remedies for
of
taxes, rates,; charges, or
Such petition may be filed
such
tolls.
the
.1500TVALN.UT STREET, PHILADELPHIA 2, FA.
TELEPHONE:
KINGSLEY 5-1343
collection
"New York
-
/TELETYPE: PH-242
Telephone: CAnal ©-73S07
Volume
188
Number 5804
,
.
The Commercial and Financial Chronicle
.
the books, papers or records of
the Issuer shall, on demand of said
:
copy of said order to be hear and determine all questions
published in the county:-wherein of law and fact in said proceedattorney or attorneys, exhibit for; the petition is filed, or, if the pe- ings and
may make such orders
examination -such, books,
titioner lies or functions in more as do the
papers
proceedings and: such
or records and
shall, without cost, •than one county, then in each of adjournments as will enable him
furnish duly authenticated copies, such counties in each of any three
properly to dry and determine the
thereof, which pertain, to the pro¬ consecutive calendar-weeks, in *a same and do render a final decree
ceedings Tor -the issuance of 4the newspaper of general circulation, therein .with the least possible de-
Securities
or
which may affect the
legality cof the
same
demanded of him.
,
cause
as
;
-
each
instance
upon
assessments, tolls,
rates or other
levies authorized to be made for
the payment thereof or the interest thereon
cypTTnivr
,
q
rf^°
ing
any right, title or qays after the
.entry of such deagainst the petition-;cree. Such appeal may be effected
property subject to taxation by the filing and
recording,' in
? ln
as\other decrees or judgments in^
eacn county in which notice of the
Securities,
er
are
thereby
.or any portion thereof,
to be expended in any county
other than the county in which
or
interested
or
the proceedings are pending, upon
the
attorney of each
otherwise affected by the book wherein
or
in
Securities
tne
the
issuance
described
of
in
recorded,
said
notice
a
.
the
date
for
set
hearing
as
pro¬
vided in-Section 3, the judge may
enjoin the commencement by any
person of any other action or. pro¬
tition
the
,
as
or
In
the
of
case
validate
the
proceedings
Securities
of
to
a
any
taken
therein
de-
Upon
application
ceeding contesting the validity of
State
the
before
partment, the order shall be pub-
Securities
petitiqn,
described
in
the
lished in the
the validity of the
assessment, tolls, rates or
taxes,
or
other levies authorized to
be im¬
vided
in
said
circulation in each of the counties
cree
thereon,
pledge of
to-be
validity
of
property to
revenues, or
payment, and may
order a joint proceeding in any
cptftt in the State, and may order
such
actions
consolidated
or
with
validation
petition pending before him, and
may make such orders as may be
necessary or proper to effect such
consolidation and as may tend do
avoid
lays
costs
unnecessary
de¬
or
multiplicity of suits. Such
or
orders shall not be' appealable.
SECTION
5.
Prior
to
thereof
part
and
of
seat
or
in
a
are
news-
State
government
is
.
SECTION
6.
;
Any
property
taxpayer, citizen .or person
affected by or interested in the
wherein said petition is
filed, shall
agai
under
net
this
therein; the court
or'any part
h
/^
t
leave
of
At
the
time
tion
3, the judge shall proceed to
'
be
.con¬
brought within
twenty-one days next after the
final passage of the resolution or
publication
of
governing
bond
the
ordinance
body
issue
and
of
authorizing
fixing the
motion
such
tax
cost
„
The
J
b
the
validity
be
for
such
of
bonds
brought by filing a
judgment ; describing
and the proceedings
valid and legal obligations of
are
the
issuing political subdivision.
for judgment the
property owners and
citizens of the
issuing political
subdivision, including non-resi¬
In such motion
taxpayers,
dents owning property or subject
to taxation therein, and any other
persons
affected by
in
-
*
governing
had relative to the issuance there¬
of and alleging that such rbonds
th|
h
4.
issuance
the
or
of
interested
such
bonds,
shall be made parties defendant.
,
Article 11, Title 15, Code of
.
-
,
"y°|.b?1?(i 1SSU£S of
.
SECTION
5.
All
such
v
parties
shall be served by publishing such
motion for judgment once a week
for
two
some
consecutive
•
weeks
In
published in or
having general circulation in such
newspaper
.
may
city
county,
or
town.
Upon
tbe
v
record and
briefs; provided, how¬
that if either party shall file!
request in writing for oral argu¬
ment by the return day of sucli
appeal,' the- court'may enter air
order setting down said cause for
-
.
same
any political filing of any such motion for
sub-division, whether the bonds
judgment the court shall enter an
^fter
tim
f0r filing'briefs as are
be issued following an elec- order
requiring the publication
aforesaid, has Spited, the Su-! *ion 011 th^ question
of their thereof and at the same time shall
preme Court shall proceed to con- issuance or without necessity Of
Continued on page 56
sideratioh of said cause upon the such election. They shall super-
and
provided for in Sec-
as
proceeding be brought to
division is located. Such proceed¬
may
of
APPENDIX II
...
bv intervention upon
oy intervention upon
court.
,
test the validity of any such bonds
unless the
ing shall
shall
equitable and iust
";
his attorney of record, who
j
>
'
county
city having general jurisdiction
and in which such political sub¬
A th petitioner Cxceot
/AZ °LreXnZ S
£ X^na mafannea and
contest ^ pr0ceedfng or inter.
the whoie
nor
establish
id
vene
-
or
nll
.
.
,
or inereaner
thereafter
court
Th_
Virginia, Determining Valid¬
and shall deliver a copy
ity of Bonds (adopted 1954).
thereof to the appellee or his
SECTION 1. The provisions of
attorney
of record,
who
shall
ceedings bv pleading to the peti- within ten (10) days thereafter
^ act s^all apply to all suits,
tion on or before the time set for file his
brief, and shall deliver a actl0ns and proceedings of whathearing as provided in Section 3, copy thereof to the appellant or ®ver nature involving the valid-
tbje date
the
-,,
Court
place designated in the order for
of
•
issuance of the Securities may become a named
party to said pro-
hearing,
clerk
Dr0Ceedin«
£
de-:
from.
SFrTInN
day of such appeal the appellant
shall file his brief in the Supreme
owner,
tion
the
heard
the
*
Within ten days after the return
-
set for hearing as provided in Sec¬
3,
appealed
who
rendered
lo-~ Supreme Court.
cated.
proceedings
the
any
expended
and
court,
A .certified copy of all of said
proceedings
as
aforesaid
duly
filed in the Supreme Court, shall
constitute
he record upon which
said appeal shall be heard m the
of general circulation published in the country in which the
such
secure
all
curities,
any
proceeds of the Se-
cause
the
-
bonds in any court of the
shall be original evidence of such
decree in any court of the State
any
party/
be duly cer-
•
SECTION 3. No action shall lie
body of any political subdivision
proposing
to issue
bonds
may
bring at any time a proceeding to
of such decree, certified
the Clerk of the
Court
in
which the decree was rendered
of
such evidence shall
herein pro- .tilled/ by the judge
manner
newspaper
wherein the
the
or
of general
a
posed or made for the payment of
such Securities
or
the
interest
or
commission
agency,
issued
SECTION
A copy
transcription of air the evidence
bonds, interim certifi¬
obligations issued
by any political
other
or
to' be
subdivision.
was
by
.
other law
any
form and details thereof.
such
payment of the principal and inthe* terest thereof."
and
process
"when
of
such
before the
defendants
.
date
mean
cates
the
a
Court
the
cases,
rendered, and the court
was
in which it
appeal,
in said pe- appellant
shall file in the S.upersonally served with' preme Court a certified copy of
in the cause.
all the said proceedings, including
named
after-
4
;
the
rendered) which
turnable in
perpetually'enjoins the institution
not
less
than, fifteen
(15), nor of any suit, action or proceeding
more than twenty
(20) days after involving the validity of this bond
the filing and recording of such or
the
provision made for the
.
or
of
(specifying
is* decree
appeal rethe .Supreme Court
•
petitioner, whether before
decree
of
shall be .considered..ascounty in which it,is proposed to md are made parties defendant to
expend such proceeds or any part said proceedings, and the court
thereof.
shall have jurisdiction of them to notice of
appeal. On
SECTION 4. Upon motion of the the same extent as if individually return- day. of -said
petition,
_—
decree
-
"Validated and confirmed bv
or
on
SECTION 2. The term "bonds"
(20)1 the following statement:
twenty
claiming
or
\
.
charter to the contrary.
shall
shall
same manner
ree
!
interest iiv
provisions of
or
a
A
•
®
such
the
property to
such payment,
secure
any
or
1'
controlling in
notwithstanding
all
the validity of any
or
pledge of revenue
■
sede all other acts and statutes
the subject and be
In gase the Securities are to be Hon in the first calendar week 4n of law therein.
•.
V ,
hearing is required to be pubissued by any State
agency, au¬ each county do he not less than;: f ACTION 7.
Any party to the
'
y • ctlon
<R.v
thority,-commission or department, twenty (20) nor more; than thirty,
cause, whether petitioner, defend- /; f SECTION 10. Bonds, notes or
a
copy
of the above-mentioned
(30) days prior to the date set for ant or intervenor or
otherwise, certificates of indebtedness vali-I
petition and order shall be served hearing.
By the publication of dissatisfied with the final decree dated as herein
provided shall
upon the
attorney of said order; all property owners, may appeal therefrom to the Su-* have stamped or written thereon
the rcircuit (or district) in which
taxpayers,; citizens or -others hav- preme 'Court, within
such proceedings are pending
and,
if the proceeds of the sale of the
-f$
;
a
busi- lay. Such final decree shall find
ness day of the week and in any
the facts specially and shall state^such newspaper, but the publica- separately the judge's conclusions
be
may
"
in
4
ever,
a
Established 1896
(I'MI WOX. COLKGT & CO.
•
oral
Members
New
York
Stock
Exchange
American Stock %Exchange
Philadelphia-Baltimore Stock Exchange
"•*
Midwest Stock Exchange
'
MUNICIPAL
123
AND
mediate
;
Philadelphia £, Pa.
.
•
New York
Manhasset
Altoona
consideration to said
been filed.
Reading
Williamsport
-
'
"Pikesville
.MEMBERS
V
STOCK
STOCK
':
EXCHANGE
.
(ASSOC.)
',
.
LOCUST AT
•
EXCHANGE
EXCHANGE
16th
STREET
PHILADELPHIA
2
vs
.
•'.
Telephones:
*
Philadelphia
therein pending,
cases
YORK
NEW
AMERICAN
Such appeal shall take priority;
in the Supreme Court over all the J
other civil
DIRECT TELEPHONE CONNECTION TO
..
1837
PHILADELPHIA-BALTIMORE STOC.K
ap-|
^ion-shall be final aftei; ten days';
and mandate shall issue forthwith,
if: no petition: for rehearing has;
Teletype" PH 180 ?'•
♦
ESTABLISHED
peal and render its d e c i s i o ni
thereon in due-course. Such deei-i
OF
CORPORATE BONDS
South Broad Street,
'PEnnypacker 5-7700
E. W. CLARK & CO.
earliest
practicable date.
Thereafter the
•Supreme Court shall give im-4
'
-
UNDERWRITERS AND DISTRIBUTORS
the
at
argument
New
York
•
KIngsley
5-4000
WHitehall
3-4000
except habeas corpus.
BAUMGARTNER, DOWNING & jCO., BALTIMORE, MD.
.
:
SECTION 8.
of the
In rthe
event
that, the
determines
authority
for the
Lancaster
York
Court
decree
*
the;
Germantown
IssuerVhas
EST. 1916
to issue
the Securities
consideration and upon the
terms set forth in the petition for
f
4
b,,--
-A--*'*-"<■
validation
is*
'
m: W. SPARKS 8c CO.
,
;
,
h/.
^
•;? NEW. YORK STOCK
MEMBERS
V
*-
.
\'i
^
A
•
EXCHANGE' ' PHlLA.-BALTIMORE STOCK EXCHANGE
'
AMERICAN
STOCK
EXCHANGE
the
adjudicates
and/or- proposed
to
be
taken
in
MARKETS
,
taken
is
within
the .time
Dealers in over-the-counter securities
above prescribed, or if taken and
the decree of the
Court
is
affirmed, such decree shall be
We
•
are
forever binding and conclusive, as
■to all matters
''
'
"
adjudicated, against
the petitioner and .all other parties
to the cause, whether mentioned
Brokers in
LISTED and UNUSTED SECURITIES
in and served with
the
Dealers in
proceedings,
•ers,
STATE, MUNICIPAL and REVENUE BONDS
TO
NEW
taxpayers, citizens and others
YORK
ance
A.
120
broadway
New
York
worth
5,
n.
T.
&
T.
TELETYPE—PH
*
y.
4-0220
2 to
Western
Broad
&
KIngsley
622
7,
6-4O40
Fund
Sts.
Pa.
for
retail.
.
11ECKER & CO.
Bldg.
to
be
affected by the
of the Securities
or
issu¬
affected
Members
■
-
Neto York Stock
Exchange
American Stock Exchange (Associate)
shall
r
•
constitute a permanent injunction
Philadelphia-Baltimore Stock Exchange
against the institution by any per¬
son
of any action or proceeding
Liberty Trust Bldg., Broad and Arch Sts., Philadelphia I^Ra
contesting the validity
of
tlie*
Phila. 'Plume LOcust4-3500 Teletype PH 767 N.Y.TtioneDigby 4-6792
bonds, notes or certificates'of in¬
debtedness described in the peti-^hmjtm ,thewaHdrty of the taxes,
in
Savings
Chestnut
Philadelphia
'
included "in
or claiming any vtight, title
interest in any properties or
funds
WIRE
situations
having
or
DIRECT
special
especially interested in
said notice of
or
the description "all property Own,
MAINTAINED
connection therewith, and no ap¬
peal
ESTABLISHED 1900
■
'
and
legality of all proceedings taken
any
.way
thereby,"
and
56
The-C&tnmercial and, Financial Chronicle
(2572)
Continued jrorn page
allowed
be
unless
the
petition
thirty
days next after the date on which
the judgment of the court is en¬
tered and only then if the party
taking the appeal has the record
certified to the Supreme Court of
55
therefor
Report of IBA Municipal
Securities Committee
time
a
jurisdiction as provided in Section
4.
Upon <the filing of any such
motion for judgment
the court
shall fix a time and place for
hearing the proceeding and shall
forthwith enter an order requir¬
ing the publication of the motion
for judgment, together with- the
time and placer of such hearing,
once
a
week for two consecutive
and to render
same
a
final decree
least
the
with
therein
is
of the court.
decree
SECTION 8. Upon motion of the
sive
in
some
be
shall
forever
constitute
sons
vested
be
officer
the
or
sustain
bonds
the
instituted
was
officers,
or the department, board,
body,
council,
commission,
au¬
thority or other agency of a unit
which is authorized by law to
the
proceedings which are
quired to authorize
take
More than 520
tions
of
unit
a
for
the
-
valorem,
other
SECTION 11. No court in which
taxes,
or
of
Astoria
were
in
the
on
10,
Dec.
on
1958.
attendance,
increase of 25% over last year.
was
payment
revenues
Association
The guest of honor and speaker
Admiral Charles R. Brown,
USN Commander in Chief Allied
Forces Southern Europe. Admiral
"Cat" Brown graduated from the
Naval Academy in 1921 and has
since served a distinguished Naval
career afloat and ashore. During
World War II he commanded the
mean
public securities of all kinds and
shall include bonds, notes, certificates
and
other similar obliga-
per¬
Waldorf
Starlight Roof
an
(c) the word "bonds" shall
the
at
re-
to provide
or
Investment
The
New York held its annual dinner
lor the issuance of bonds.
the validity of the bonds.,
newspaper
such
been
of
the
or
have
not
may
may
NY Investment Assn.
shall
conclu¬
a
or
issuing political manent injunction against the in¬ of money at a future date,
subdivision the court in which the stitution by any person of any whether
payable in whole or in
first proceeding to invalidate or action
or
proceeding contesting part from the proceeds of ad
plaintiff
pub¬ may enjoin the commencement by
lished in or having general cir¬ any person, corporation or asso¬
or
culation in such county,, city or ciation of any other action
weeks
shall
and
other
hereafter be au- officers,
law to issue bonds.
•
Section 3. When Act Effective—
(b) The term "governing body"
shall mean the board or body in
which the general legislative oradministrative powers of* a unit
appeal
no
officers to sign such bond although
of this state and
states, which
or
more
now
within the time above
delay. The proceedings shall take
precedence over all other busi¬
ness
and
state,
or
actual time of the execution
of such bond shall be the proper
thorized by
is taken
prescribed,
or if appeal is taken and the de¬
cree of the court is affirmed, such
bonds
possible
at the date of such bond such per-
one
the time and place
and
the
of this
Appeals and his brief filed there¬
in within sixty days next after
designated in the date on which the judgment
place for hearing
the proceeding, which time and the order for hearing as provided of the court is entered. If the ap¬
place shall toe published with the for in Section 5, the judge shall peal be timely and otherwise in
motion for jfUdgmerit.
proceed to hear and determine all conformity herewith and if the
SECTION -6. Any person, cor¬ questions of law and fact in said Supreme Court of Appeals allows
the
cause and may make such orders
appeal
the same shall be
poration, or association desiring
as
to the proceedings and such placed on the privileged docket
to contest any such 'bond issue
SECTION 10. In the event the
shall proceed by >motion for judg¬ adjournments as will enable him
ment brought in the court having properly to try and determine the decree of the court validates the
fix
Thursday, December 18,1958
ated or established, or any board,
commission,
authority
or
other
public agency or instrumentality
within
filed
be
...
any
carrier
source.
Hornet.
Admiral
Brown
"facsimile" shall has been in command of America's
mean the reproduction,
either in
support forces in the
town. In addition to such publica¬ proceeding involving the validity
validate the bonds unless it finds the same or a different size, by
ko.^'el Middle East area since
tion, the plaintiff must secure of the bonds, and may order a substantial
defects, material er¬ engraving, imprinting, stamping 1956.
His
?aYy responsibilities
personal service on at least one joint hearing before it of all such rors and omissions in the inci¬ or
otherwise of the signature of Jave included the direction of our
member of the governing body of issues then pending in any fac¬
dents of such bond issue. Matters an officer of any unit or govern-- forces from the time of the lin¬
tions or proceedings in any court
the issuing-political subdivision.
of form shall be disregarded.
ing body or of the seal of any certainties of 'the -Suez situation
in the State, and may order all
SECTION 7. Any party defend¬
SECTION 12. Whenever bonds unit or governing body or any to the recent U. S. operations in
such actions or proceedings con¬
ant may reply to such motion for
offiror ihor^nf
Lebanon.
Fleet Admiral Halsey
solidated with the validation pro¬ issued or to be issued by any
judgment within ten days after
ilo
-also attended the dinner with
political subdivision have
been
the second publication thereof as ceeding pending before it, and
Anv
i D
fi J
Rear Admiral John J. Bergen and
may make such orders as may be finally validated by decree'of a
required-by Section 5 but not
court of competent jurisdiction, or
authorized to be
thereafter. "Any property owner, necessary or proper to effect con¬
where no proceeding to contest
solidation
and as may tend to
taxpayer, citizen or other person
the validity of such bonds has
proceeding to invalidate or sus¬
tain bonds is brought shall in¬
a
(d)
the word
,
i £
X
in
interest
to
said
to
the
become
may
party
a
avoid unnecessary cost or delays.
Such orders shall not be
proceedings by pleading able.
motion
on
by Section 5;
before
or
time set for hearing
the ;
provided
as
thereafter by in¬
or
tervention upon leave of court. At
v
tV
SECTION
9.
From
shall
of
lie
the
to
Appeals.
an
appeal
Supreme
thereto may, if
validity of the taxes, assessments,
final
the
judgment of the court
lim¬
ited by law, no action shall there¬
after be brought to contest the
•
.
general,*'special Por YocaTlaw
any
been brought within the time
appeal¬
issuidby
the
tolls, rates
Court
ized
No such appeal shall
the
by
nance
other levies author¬
resolution or ordi¬
or
be
or
such bonds
tails
however,
to
be
executed
with
used for the
or
each
such
—
EIGHTY-ONE YEARS OF LEADERSHIP
—
1958
<
one
property to
or
secure
■/;
...
v -
Provision to be Inserted in Notice
Corporate and Municipal
'These securities
American
will also be furnished to the
suc¬
certificate."
Provision
to
;V..;
be
the
of
sealing
such
body
or
of
or
unit
C
seal
^regoiyT,1 ff, f
R*
its
upon
ture
or
facsimile
a
shall
R
or
coupons
£
Bid
v.
such
r
-
m
facsimile
"This
shall
Lewis,
t
.
^yar^
Sachs & Co.; William F. Shelley,
VaiTcej Sanders &^ompal%r
"
jSfa^
^Ye^l^Jphnson & Woop,
Chairman of. the Board of GoV-
such
New York
the
of
Stock
g0Frank A' WiUard> Rey"
signa-
on
J.
New York Group oL the
Investment Bankers Association,
whose
of
appear
-^£hoivi
? Pilfr?P
,
^ Pressprich & -Co., Chairman
enters
bonds
in
.
such
of
w
Hawes, Blyth
de
p
Corporation, Robert
Ss^rr£?
-°V
officer
bear a
any
physically
signature
Form.
Teletype PG 397
$ £ '
Struthers & Co., Geo:
corpo-
or
In case any officer whose
.:
Inserted
S
at~
bonds
bidder the usual closing
dated as of the date of
delivery of and payment for the
bonds, including a no-litigation
Telephone ATlantic 1>0358
.
anyy
''.1^.V.-'
Equitable
cease...ta~~S— Form
•
lnv.
i i
:: BALTIMORE, Md. - Equitable
ll 11
,
Investment.: Co. -has been formed
shall nevertheless
1ftnn TCrvrth rhnriPc
proposal is conditioned be valid and sufficient for
upon the (issuer)
furnishing to
the undersigned, upon the deliv¬
business.
are Charles ;H.
ery of the bonds, a certificate cer¬
and any bond
tifying that there is no litigation the facsimile signature of, or may urer» and
CT Murphy, Vicepending or, to the knowledge of be signed by, such persons as at President and Secretary.
the
signers
thereof, threatened
affecting directly dFJhairectly the,
validity of the bonds -or, the levyf
and collection of taxes to pay the
interest and principal thereof or;
Underwriters; Brokers and Distributors
in any manner- questioning the.
•;
proceedings and authority for the
Jamison Bid*.
City, New York
Telephone Dipby 9-3650
such
papers
PITTSBURGH 19, PA.
V
for
with the official
seal
governing
cessful
Exchange
■
UNION TRUST BUILDING
New York
offered for
requirement). There
Stock
'Pittsburgh Stock Exchange
14-Wall -Street
are
by
officer of such unit but
proving legal opinion of (name of thereof, such bonds may
facsimile of such seal if so auapproving attorney), the cost of
thorized by the governing body
which will be paid by (the issuer,
of such unit, and it shall not be
or the successful bidder if that be
necessary in .such, case to impress
the intended
Members:
1
bonds
rate
sale subject to the unqualified ap¬
&
•New York Stock Exchange
provide
of Sale.
Securities
signed
manually
which may be issued at any one
time. In case any such law shall
APPENDIX III
in
.*
it shall not be necessary that the
same
officer sign all the bonds
revenue
such payment.
Underwriters, Distributors, Dealers
■
least
of
1877
be
Jerrold
yecchl> Smith, Barney & C
bond
shall
J*
•
provided,
coupons;
that
payment of such bonds or the in¬
terest thereon or of any pledge
? Lic^Cated^T
S^
«Tvfet1' S rvi
9*
fa
Juq
9
qYa tIwvHttVihm-t rL
S
clfl Rnlw ? Cr.
the
-
facsimile signature of any officer
authorized to sign or to execute
issue and fixes the form and de¬
same
? ^
authorized by'
governing body of such
bear
which authorizes such bond
of
so
^ ^Bergma^ RJ. Press
Greensburf, Pa.
Telephone 3311 or 3312
Offllrs
SSinCnffl^e„ntilU^h d?1
lfvery?
ma^bear
Direct Private Wire to New York and
Greensburf Offices
.
.
1
.
and
T^eas"
1
UNDERWRITERS
DISTRIBUTORS
■
-
DEALERS
issuance of said bonds
,
r
Cirporate and Municipal Securities
provisions made
Bank Stocks
Pennsylvania
-
Ohio
-
,
West Virginia ?
or
'
of any
their
:
or
payment or the corporate'
existence, boundaries or taxing
powers of the (issuer) or the title
of the present officers or any of
them to their respective offices."
-
./
\
■*
*;
;•
&
v..-
MODEL FORM OF BILL
Company
New
American
Stock
Stock
Exchange
Execution of Public Securities.
Exchange
Section
Pittsburgh Stock Exchange
(Associate)
in
Wheeling Stock Exchange
Private Wire
to
the following words
following
WILLIAM M. McKELVY
(a) The word "unit" shall meanthe
state,
or
any
department,,
board, commission or other'
agency of the state, or any county,
city, town, village, district or any
other
political subdivision of the
state heretofore
or
hereafter
cre-
WILSON A. SCOTT
FRANK H. HUNTER
G. PEARSON
DAVID W. HUNTER
RHODES, JR.
REGINALD R. CHURCH
GELSTON B. MORRIS, JR.
WILLIAM S. McKELVY
NEW
YORK
STOCK
EXCHANGE
AMERICAN
Clark, Dodge & Co., New York City
Wheeling, W. Va.; Butler, Pa.; Johnstown, Pa.
this Act,
meanings:
,
Branches:
1. Definitions—As used
and term shall have the
FIRST NATIONAL BANK
BUILDING, PITTSBURGH 22, PA.
Telephone COurt 1-7300
Teletypes PG 560 (Corporate); PG 570 (Municipal)
•
&
.
MEMBERS
_
York
.
Authorizing the Use of Facsimiles
of Signatures and Seals in the
Established 1891
v
Corporate and Municipal Securities
APPENDIX B
A. E. Masten
of
authorized for,
STOCK
E. PAUL TUNNELL
PITTSBURGH
•
EXCHANGE
UNION TRUST BUILDING
•
(LIMITED)
STOCK
EXCHANGE
(ASSOCIATE)
PITTSBURGH 19, PA.
r
Telephone—GRant 1-8700
Bell Teletype PG 587
Pershing & Co. ff ire System
Volume
188
Number 5804
.
The Commercial and Financial Chronicle
.
Continued,- from page 26 i
>
-
"
selective : than "the !■ invest-
-
companies.;
I"Y
,
.
trusteed
L
m
Pfl
Sept,
30,
Vr
\
New York State banks
V- represented i 00% of the marekt
value oi their total common stock
*..
•
.
more
.ment
;.
v.>,'
57
V;
v•....
holdings wpuld
iv--*
„
,v
-•
..
-
Even though the variable
■■
s
nuity to
extent
some
may
chases of cbrbibon ^nd
stocks for corporate
an-
grow
pension
iy uuic umi mc-muiuw
saved will be invested in equities
uurer msiiiuaons TOTaieaj&z.i
Whilfe? some
chases by institutions
of
lion.
alternative
these
dii-
Since 1957. the rate of pur-
particularly
forms; of
Saving; have relatively pension! f u n d s and investment
low proportions in stocks (except companies, has been stepped up
;This luniformity of policy and-foir mutual fUnds V Therefore, for '
sharply, ft seems Reasonable ^
-holdings.*
t
:
11
; i
,
today; amount to .there is the comforting assurance, •
total,
m
the; event that a selection (preference :among institutional in- this reason alone, the tendenee ^assume that
purchases by;* these
In recent years, the importance proves unfortunate, that all the yestors. is, of course,; to be ex- will be for institutional fundsj as five
classes of institutions maV
jk*2
mTIAr
Tlifill^l JITV
WffVfe
nnninrl
Af
Avilw
'4rJi
*>1^
*
,
about one-third of the
,
'
S -2'*-:
.
,
v»
'«m!U'
J* ***>.'£ A3
\
"j
"1U :
rv
"''Of *«^3 "0" "ftO*
annually..
-:
:
;
reported in the statement
^
vestment •
v
companies,
-
Insurance
.
of these institutions share similar
able annuities may exert a domi-
of
th^Prud^nt^^n^urarii^^om^
.Jersey.
^pany issues) of $11.5 .billion.
a*
v-i
-
-
Thus,-
7
.
two-thirds
lPttralir
•V.
•
a
T-
r~
vvavvu
%
.
gv/ycwicau
tu. cutci (jWv
Furthermore, since the ; variable annuity business. It Is
investment of these funds in equi- bur
assumption, for the purposes
—will be administered almost
these' ? institutions
counted -for, over
"kt*^
^.this're^thhtr'ttie
It-f/*
tv^rtti-HAiV^rv ''-i.fi A
AiJ-_
V,..r
-
J
■.
■
desire on
1-^'
■
•
*•
*-fr
m
...
V
'1. * •' .*'■
existing issuesrin secondary
,:
rkets.
te
,
For that reason, these figdo suggest that there
.
'Acting for pension fund* endowshowed that ; total .ments, investment: trusts and coramounted to $188 Iporate trustees, the managements
milHcm iri the period and that this of these tostitutions have in their
consider^le difficUlty someday
It
portfolios.
migltyU
ures
purchases
1? ^r ability- to provide-adequate sum was ahnost, wholly ^invested Control aboutFone-third of,', total
funds
formany
tof^; these new fin aVrelativeiy.small number of outstanding common stock shares
.
.
equity issues in wtaoh institutions
V'K:.
,
iSrSu«®%m^ 'ThlfVa wfthm^v
^fUa,mon^h«
rnnnrmimrli
.without any direct effect upon the
;STd3B» of the* of suitable stocks.
an ,ad<ntWnal
dWt
natural
!,ISSU?
'Xe
.
listed or investment-type ovef- ithat afo -listed.. Tt is patent that '"
oveR- that are -listeri„ It is,oatant.. that |n
-interest.the-eounter issues; Not more than the effective control of the major A
listed
or•
investment-tvDe
.
have
no
current
$12 million, represented, segment of American business has
'caoital. and 90% of this passed into fiduciary hands.v
or
^ .?"^tlces
°f Fmancial
Inslitut,#ns
-new
'
■
;.
..r
tho
o...f
-
funds have essentiallv the
of foe
same
.'v.. sar?.
the
general
DroWems
same
'
When we consider that
the greater-part of
equity
and
by institutions is limited to A list
obiectives
of
seqerat jne same.QDjecpves.„
A
by far
buying
less
the
comparative statis-
will illustrafo the imtmet of
than 100
New- York
we
are
at
stocks listed On
Stock1 Exchange,
-
loss to estimate.what
a
:-V.. > the purchasing pttwer of the vanmay be the eventufal" etfect of an
subscription rights. - '
Importance of Institutions in the able annuity reserves when superContinued on page 58
j
The published portfolios oTinT.: Future
ihnpob^d, td- a large extent, upon r,
.nurtured in the tradition of ttus^" ;vestment>
companies /reveal. the *- The future gives, every appear- ,9^from institutional,
n Remarks of Carrol III. Shanks, Presi¬
teeship. First and foremost, they same story. Except for specialized ance of being more of the same, sources.
dent, Prudential Insurance Company, beare concerned with the preserva1funds which, in keeping with their As-changes occur in the structure
A report recently received indifore' Business Affairs Committee.'New
stated objectives do buy modest offour; economy, along the same
that during 1957 net pur- jSHZ
.to their charge.
Higher rates of amounts of secondary or unproved 4>aths as in recent
derades, there 1 *
-■*
1
v
<
income return, both present:; and
issues, the more than $13 billion is every likelihood -that the role
potential, and increase of market of assets held by the industry is of and the reliance.on institutions
value are, of course, the motiva*- almost
DIRECT PRIVATE WHtE
wholly .; invested in the in our caiptal markets will con¬
ation for accepting the risks inher* -best known
companies. In/fact, tinue to grow in importance. The
;
-
:f;amountwasaccouiitedforby.pur-
;
The men who manage these in;stitutional funds are trained and
phases
on
■
t
-
*""»* *""*-• ">-*
.
ent
in
-ment,
all
but
common
stock
invest" :at the end of
the fundamental
hazard has been accepted an im-portant criterion of selection is the
once
June, 1958, the-"fifty
favorites" of the investment
rise of institutions
considerable
com-
has
taken
on
.degree to which it is minimized; '
Mm
today, a
pany industry—the fifty common factor
which by itself suggests
stocks which show
the highest the continuation of their growth
aggregate market values 'in* in- in the next 10 or 25 years. It will
H. Therefore j
"
NEW YORK CITY
momentum
vestment company portfolios
"
the fiduciary invesgenerally- look to the
— take a major upheaval to upset
represented about one-fourth of this trends-such as a destructive
^financially Strong, solidly estab^total assets of all investment war or possibly a major depres"lished
companies
with, proved companies.
: ;
:
si°n.
^
•management and an assured com: Although very few pension
For example, as far back as we
^tor
will
i
position in ; the favored funds publicize their holdings, it have data, life insurance comHerein, surely; risks is hardly a secret that they follow panies as a whole have tended
minimized
and,
moreover, a policy which, if anything,; is yto* double their assets regularly
:
/every 10
years. This suggests that
'petitive
*
^
industries-.*'
are"
y
....
'
will
amount to
billion, $7 billion
more
funds
-
,-V; ■-.<
PITTSBURGH
119,
in stocks.
continues, ; the total; assets
of this group will increase from
what was $19 billion at the end of
1957 to over $50 billion at the end
IPO Rf E ft 1 B U I LD I N G
PA.,
of
.
1965.6
If 30%
f
i
-
v
M
t
t
Exchange (Assoc.)
'V,V'
or
Also, if the rate of growth -of
corporate non - insured pension
thomas 4 company
'T
of which may be
+
-V
Pittsburgh Stobfe Exchange
about $200
$8 billion
or
Members.
American Stock
-fI^^^^^^^===^===!!=s====«^r by. ; 1967 T the whole ; industry's
assets
,
New York Stock Exchange
'
'
•
y
reed, lear & co.
.
Branches
new york, n. y.
butler. pa.
corry'pa.
johnstown, pa.
meadville, pa.?
warren, pa. r
•
PITTSBURGH
(AT.1-Mtt)
B^Il
Teletypes
of this amount
•
■
New York City: NY 1-1420 —Pittsburgh: pg
Reynolds & Co. Private Wire System
—
49$
f
;
v,
;
;f
is! then in stocks, these
institutions
will hold approximately $15 bil¬
lion worth of equity securities.
Municipal and Corporate
Variable Annuities
Securities
One of the
tions
-;}-'
i
at
big unknown
this
time
is
the
ques¬
future
prospects for the development of
-the variable annuity.
Important
interests
in the
life insurance in-
*
dustry are currently putting up a
"strong fight to surmount certain
legislative and judicial obstacles
: to their full-scale
program.
In
p-inuyltlflnlO
nuity
"rSSm^S£m^>\
any
"
,
-
...
.
„
..
TeUtjrp*
—
PG 400
;
">
t.
Pittsburgh Stock Exchange
the
have
variable
several
an¬
advan¬
(1)
The
already
large
sales
Investment Securitiest
try, numbering over 200,000 peo¬
ple.
(2) A highly developed public
fear of inflation.
4 Computed, fro*
Pension and .Other
Employee Welfare Plans■ New Y^rk State
Bank'ng .Department, 1955.
■*"
.5 PetetDruckor,
Am etl e cts Next
Twenty Years, The New Tycoonss
6 Vito
Natrella of the Secur'ties and
°ut'^_
PITTSBTJRaH 19, PA.
Telephone
^
...
Philadelphia.'!?altimore Stock Exchange (Assoc.)
force of the life insurance indus¬
U1t^~^ewsec
PLAZA BUILDINGr
■>
tages favoring rapid growth:
IL.Pittttmn*
Tradin«M»rk*"
-
Members
'
,44 R.ta-1
..
'
case,
will
operatiori of the
Steele, Haines &
—
GRsmi 1-1875
1
-
Exchange Commission has projected this
group's total assets to $52 billion by the
end of 1965, as described in a paper dettvered trefrrre tftie American Statistical
Association, Sept. IS, 1WT;
1812 First National Bank
Pittsburgh 22, Pa.
GRant
1-3883
Bldg.
-
,
—
Teletype PG 381
f
4%.
58
The Commercial and Financial Chronicle
(2574)
Continued
90% of net purchases by institu¬
only 10% by individuals.
from page 57
tions and
of risk capital that will waive the
protection of earnings and assets
return
in
:
Report: of 1BA Industrial
m
:
'■
.
'
■
What of the Medium Sized
*>
....
.
Company?
*
'
.
rV
With the practices and policies
pursued today by this huge seg¬
-
ment
the
of
investment
market,
where then is the small and
me¬
for
Thursday, December 18,1958
...
The
Role
of
the
Investment
'Banker
the
opportunity of
exceptional profits.- But, at least,
this problem is widely recognized
The
-
typical medium sized
poration does have
cor¬
to the
access
equity capital market but to enter
it successfully it must
compete
agencies, although with the
companies in its indus¬
almost completely ignored by the
try which have an established in¬
investment banking fraternity.
vestment standing.
One of the
and its solution is the active con¬
cern
of
some
$50.0 billion of this total would dium sized business to look for
The medium sized business is at most effective means of
compet¬
be in trust fund assets,
equity capital that it needs to no
particular disadvantage when ing is to offer a higher dividend
fulfill its opportunities in an ex¬
over the next few years.
The table below shows the net
it seeks senior capital. Life insur¬ return. The dilemma is obvious:
A further indication of the mag- purchases
of
corporate
stocks, panding economy? ;
ance
companies, commercial to make its stock attractive to
nitude of the potential demands preferred and common, by type
The plight of very small busi¬
banks, and pension funds are not the investor, it must pay out a
for stocks is found in the state- of purchaser during the 1950-57 ness has received and continues to
only receptive, but will compete reasonably
high
proportion
of
"ment of Mr. Shanks before the period. With the exception of 1956, receive the solicitous attention of for the business when the
supply earnings;
but' the J larger
the
Business Affairs Committee of the the trend toward the institutional- government and commereia 1 of and
demand
for
investment amount of
earnings it must dis¬
New Jersey Assembly to the ef- ization of equity
investment is banks. The traditional sources of capital is in reasonable balance. burse, the
greater the amount of
feet that at the end of 20 years clearly evident. During the 1950- small business
capital, its own¬ The problem of equity capital, new capital it must raise. If the
aggregate capital requirements 52 period, individuals accounted ers and individual friends and re¬ however, is an entirely different medium
sized business is to find
arising from variable annuities for 58% of net stock purchases; lations,
suppliers,
commercial matter. We have considered the a path through this
quandary, it
will amount to $53.0 billion.
during the 1953-57 period, indi- banks and factors, have been aug¬ tendency of institutionalinvestors will need the faithful services of
An indication of the potential viduals accounted for only 49% mented to a
significant extent by to confine their common stock an interested and
competent guide
growth in demand for equities is of net stock purchases; and if 1956 new agencies and new methods. portfolios to investment leaders.
—one who understands the finan¬
the estimate of Betram M. Betsch, were excluded, the latter percent- The Small Business Administra¬
Of course, most industrial en¬ cial necessities of industry and the
President of the American Society age would be only 41%.
tion of the Federal Government,
terprises, large and small alike, requirements and limitations of
of Corporate Secretaries, as reI am sure that the trend would directly and in association with
have placed their main reliance that segment of the equity capital
ported by the Los Angeles stand out even more clearly if local bdnks, has established a very
for equity capital on the reinvest¬ market that is still available to
"Times," that by the end of 1965 data for a longer span of years creditable record in providing ment of a substantial
percentage him. Such guidance will be found
neontn
were
available.
Unfortunately, capital for small business expan¬
of current earnings.
pension fund assets and insured
Indeed, in in the investment banking fra¬
comparabie data for years prior sion and not infrequently has par¬
the
postwar
reserves would reach the astoundperiod,
reinvested ternity and in particular among
to 1950 are not available at the
ticipated
in
original financing.
earnings
have
provided
about those whose time and abilities are
ing total of $90.0 billion, and that present time.
Under the Small Business Invest¬
three times as much equity capital not pre-empted by the demands
ment Act of 1958, means are being
as has been
raised by public of¬ of large industry.
^
\
Net Purchases of Corporate Stocks 1950-57* :
established for setting up invest¬
The investment banker who has
V
ferings.
However, business as a
($ billions)
,
60 &
of purchasing power
concentrated on the same stocks
added
^
y
,
.
Type of Purchaser
1350
Individuals
.9
-
Pension funds and insur.
cos.
.7-
1951
1.7
.5
Savings institutions
t
f
f
.2
Nonprofit organizations——
Foreign holders
f
.1
Invest, cos. & other finan. inst.
——
1053
1.7
.8
.1
.4
1953
1954
1.0
.8
1.1
.8
1955
1.3
.9
.1.1
.5
.5
.1
.3
1956
ment
1957
companies
whose
special
1.8
function
1.0
1.1
t
,1
financing. Also, commercial banks
through the medium of the term
.3
.9
loan have extended
2.8
would be small business
materially the
whole does not
self
financing in an expanding
economy and even its partial suc¬
cess
in
decade
doing
was
•!
♦!
.1
.3
so
over
the
exceptional. To
past
a very
volume of their capital considerable extent it
was
made
commitments.
The
development possible
by
the
flush
earning
that is perhaps of most importance'
power generated by the insistent
—
•!
enough to be
-
range and
f
earn
to small business, although it is
postwar and Korean demand and
widely utilized by business of all the-'inflation, that
accompanied it.
sizes, is the sale and lease-back;
65
55
43
31
43
74
45
Small business in one respect
arrangement. A very substantial
is favorably situated to finance
''Details may not necessarily' add to totals, due to rounding.
fLess than %% million. amount?4>£ financing has been ef¬
SOl'KCt: federal Keserve Board.
fected through this device and a through retained earnings because
its stock ordinarily is held by the
If we would add to the above the normal growth cdrve of the portion of it has been of an equity
management who cannot benefit
data the impact of the equity pur¬ trusteed corporat pension funds type in character if not in name. from
dividends
because
of
the
No one would deny the vital
chases
by life insurance com¬ were applied, plus the expected
confiscatory higher bracket per¬
necessity
of
opening
up
new
panies by their entrance into the
sonal income tax rates. As public
portfolio changes yet to be made sources of investment capital to
variable; annuity field, we would
common stock financing is seldom
In fact, it is not
find that the table would be ad¬ by governmental, state and local small business.
possible, anyway, the only inter¬
improbable that the preservation
justed to read 70% of net pur¬ pension funds from bond and
ests that must be considered are
of those two priceless assets of our
chases per annum through institu¬ mortgage: purchasing
to
some
those of the controlling stockhold¬
industrial system—invention and
tions and only 30% by individuals. per cent of equity purchases, that
innovation—is directly dependent ers. Therefore,-the total earnings
It is conceivable that by 1965 if the figure will then have reached
upon the continuing availability can be reinvested.
Total
—
—
1.7
2.6
2.3
3.1
2.6
3.0
3.8
4.0
% of total acquired by indi¬
viduals
53
-
-
established
from
the
his
business
traditional
apart
centers
of
finance is
exceptionally qualified
to join hands with medium sized
business and advance its welfare
to mutual advantage.
The
;
harmony of Interests is
pecially
to
apparent
the
es¬
invest¬
ment
the
the
banker who has pondered
implications to his business of
institutionalization of savings
the
and
concentration
He has
ments;
of
become
invest¬
of
aware
important dilemma facing the
banking business.
First, those individuals who con¬
an
investment
stitute the most important part of
the
banker's
clientele
directly
control an ever decreasing pro¬
portion of investable capital. How¬
ever, at the same time there is a
smaller and
restricted sup¬
more
ply of top grade investment par¬
ticipation available to the banker
to offer
in
to his
clientele.
He can,
degree, offset this restric¬
tion of his business by the active
merchandising of investment com¬
pany
shares, but to the very
some
extent
that
quishes
he
some
does
he
so
relin¬
portion of his
pro¬
fessional role of investment bank¬
'•
er.
The
s,
-i
investment
^ ]
banker
can
bring a veritable wealth of ex¬
perience, skill and knowledge to
counsel medium sized business on
its
immediate
capital
problems
and its long range financial goals.
His professional abilities and his
creative
imagination
have
been
nurtured and disciplined by close
association with many types of
business
ment.
-m«
JjJLtL t
NATIONAL (BANK ; AND ^TRUST
COMPANY
OF
being
CHICAGO
and
The
business
necessity
manage¬
of, always
acutely, conscious of cur¬
potential economic and
developments
on
the
and
rent
financial
LA
broadest
SALLE, JACKSON, CLARK AND QUINCY STREETS
possible
national
international scale
affords
perspective that is
■*.*;
■j
■
'
l*.•'
operation.
».
U. S.
»- r
»
t
■
What Should the Investment
Banker Do About the Problem?
Government, State and
Implicit in the investment
banker's relationship with his cor¬
porate
clients
is
a
continuous
Securities
of
sense
responsibility for the
terprises
and
sponsors,
favor of
unless
known
Continental
perts.
Illinois
and
National Bank
or
^ ' ""
'
2-9000
Chicago
ir*
CG 1431
.
■
v'
j>'.
'
U
*■*. ;"r
* * v
\ -rC
'l.'ILI. ■ll.JjiM.J-.
.
'1
Relations
Although there
varied
he
in
growing profession
Public
as
en¬
that
abdicates
services
placed
to
are
that
Ex¬
many
he
is
render,
his
cli¬
%i
iV
creating a distinct corporate
personality and investment char¬
acter which, by
earning the con¬
fidence
will
,
he
ent in
' '■
*'
securities
primary contribution is this:
(1) To participate with his
Trust Company
STATE
the
uniquely
AND
rJ:
a
to
management preoccupied with the
immediate demands of profitable
1
t
and
him
invaluable
be
of
supports "
(2)
the
entitled
To
investing public,
to its continuing
"
return
to
the
kind
of
sponsorship that includes directorsrhipg and representative:: di-
(
Number 5804
188
Volume
.
.
The Commercial and Financial Chronicle
.
Frank B. Reid
rectorships on the part of invest¬
ment bankers.7:
his
(3) To encourage
spondent firrris who
finance
ment
the
educate
to
Republic of Panama Bond Offering formally
•
.
Julian A. Space r
"
•
..
The Johnson, Lane, Space Cor-
manage¬
poration, Savannah
v
the ways and means of
on
Co., Inc.,
Cleveland
corre¬
are
away
centers of
traditional
the
from
+
Fulton Reid &
-
John W.'
preparing itself for a public issue
v :
I
/.x
.
^ '
-
>
Security for the bonds has an
interesting historical background
I since it is based on: the Treaty
of 1903; as amended, between the
United States of America and the
; Republic of; Panama under which
•
*
■>
Coast Exchange Member
r
(5) To educate the managers of
institutionalized funds to broaden
their
corporations — especially those
corporations with sufficient capi¬
talization-to prevent any impair¬
ment of floating supply or mar¬
ketability that might" result from
large institutional holdings.
Lastly,
(6)
it
and
understand
1
evaluate
these
to ' attempt : to
"forces at play"
securities
own
business
eight
or
seven
the
over
nia is
Panaipa in perpetuity for the
and occupancy of the Canal
Zone.
The; $1,000,000 payments
are being assigned, until all bonds
are retired, to The First National
City Bank of Ne\y York,, as
agent for the' loan. ;;:
•
'
use
secured
bonds
due
1993
took
place recently in New York
City, when Fernando Eleta A.,
Corp.
(Special to The Financial Chronicle)
Minister of Finance and Treasury
check for the net proceeds of
the sale o£ the bonds from Philip
Isles (seated, center), partner of
a
Lehman Brothers, manager of the
World Bank. The bonds
were pur¬
chased from the Republic by the
underwriters at
and
reoffered
a
price of 100.17%
to
in the closing cer-
4.73% to maturity.
securities: United States,
Government
HIP Investors Formed
PEEKSKILL, N. Y.
Wagenseller & Durst, Inc.,
Angeles
,V
Los
Frederick
F. S.
Mark
*
C.
Street
-
:
Lester, Ryons & Co.,
Angeles
P.
•-
;;
Moseley & Co., New York
Sanders &
:
7
'
1
,
; ;
Francis I. duPont &
Joseph
Cleveland
;
'
.
i
>
-
J T f\ :
Kuhn, Loeb & Co., New York ; ;
.
;
"•'
:
previously
was
>
•
is
Mr.
> with
X
Jones Opens
>
Calif.,— H/
engaging in a secu¬
business
from
offices
at
,
-:
„
,
v
Hallowell, Sulzberger, Jenks,
Co.; Philadelphia
J. J.
,
.
Blancke Noyes
Hemphill, Noyes & Co.,
of Joe
Wade Jr.
& Co.* He
formerly..with" Waddell
Reed, Inc.
* v h
•'
u :
was,
T
v
-
;
"
P. J. Maestas Opens
(Special to Tns Financial Chronicle)
.;
Goodbody & Co., New York
-J
MEMPHIS, Tenn.—Jqhn Joseph
Wade, Jr.. is engaging in a securi- .ties business' from .offices; at 3387 /
Poplar Avenue under the firm
Kirkland &
Thomas A. Larkin.
•
(Special to The Financial Chronicle)
name
.
Samuel N. Kirkland
'
■■
/
-
'
-v'
issues/State and Municipal Bonds
securities
Poritzky
9015 Wilshire Boulevard.
;;
Joseph, Mellen & Miller, Inc.;
Gilbert W. Kahn
I.
Treasurer.
and
H. C.
; •'
rities
Co.,
- • ': V
r'*"!:* /> ':
New York
Herman B.
i&J!
t
Cabot Jones is
.
Blyth & Co., Inc., New York
Charles L. Hewitt
.
BEVERLY HILLS,
Company, Dallas
Edward Glassmeyer
engage* in .a
Herman
President
Co., Inc., New York
Robert R. Gilbert, Jr.
/
.
HIP In¬
Cooper-Hartert Company.
,
A;'-
Fred Fox
P. F. Fox &
to
business.
Poritzky
'
"
V Los
.
vestors, Inc. has been formed with
offices
at
111
North
Division
Braun, Jr.
Davids -1
—
public
v'V'-.
FT.
ORD, Calif .—Phil J. Maestas
is engaging in a securities busi- ~
ness
from offices at 101 Fourth *
Div. Avenue.
New York V.
U.S. GOVERNMENT
1!
STATE and
MUNICIPAL
BONDS
THE
NORTHER
t
b-<
r.
-t
•',; i
-
Financial 6-5500
«
h4SJ|i
II ST
.BANK
BEU SYSTEM TELETYPE Cfi 36* CHICU0
NEW rO«K»Em$£NTATrVMS
NATIONAL
FIRST
i
/
-
i
Sn>MlT.Wn. Nri4J3
»
*
I
1
Building with Chicago Since 1863
-Ii
at
price consti¬
approximately
scription.
Ore. —The First of Panama (seated left), received
Participating
Pacific
Investment
Corporation
fects.
However, the
individual
has been formed with offices in
can change his own policies with
the American Bank Building to
respect to the conduct of his busi¬
engage in a securities business. ^/'1
ness, as some have already done.
Ronald A. Roeske is President of A ';
Investment
the firm.,'
/V
«•.
Respectfully submitted,INDUSTRIAL SECURITIES
the
investment banking group which 101.17%, the latter
offered the issue for public sub- tuting a
yield of
PORTLAND,
William S. Hughes, Chairman
;":
proceeds from
ing indebtedness of the Republic,
including all indebtedness to the
graduate of Culver Mili¬
ternal
COMMITTEE
fiscal
the financing to redeem outstand¬
that
tionalization and its attendant ef¬
America owes, under, the Treaty,
Panama will
First Pacific Inv.
by
to be derived from
to
Formal completion of the public
in Pittsburgh prior to moving to offering on Nov. 20 of $16,800,000
Republic of Panama 4.80% exLos Angeles in 1945.
individually or collec¬
tively the investment fraternity
may
not impeed or materially
change the trends toward institu¬
are-
use
tary Academy and The University
of Pittsburgh and was in business
cies in the securities business. We
feel
a
sinking fund instal¬
$1,000,000 of the $i,93O;O00 annual
payment which the Upited. States
Leff, formerly active in the
oil business in Southern Califor¬
years.
maturity
of,
Mr.
We
hope that the study presented
here may serve as a helpful back¬
ground for anyone making poli¬
next
First
curities business.
effect on his
with respect to their
Interest and
ments to retire the entire issue
poration was organized by / Mr.
Leff, 'President, on May 2, 1958,
is headquartered at Beverly Hills;
and is engaged in the general se¬
important to
is
the Panama Canal was constructed.
^
Angeles Corporation to
membership in Pacific Coast Stock
Exchange through the purchase of
a membership in the Los Angeles,
Division has been announced by
Frank E. Naley, Board Chairman./
The firm of First Angeles Cor¬
clude the shares of medium sized
,
*
-
of investment to in¬
scope
'
/; The election of Mark D.'/Leff
of
to the
.
.
-
were:;
First National City Bank of New
York; Panama's Fiscal Agent- for:
the loan, and Marcel A^Palmaro,
partner of Lehman Brothers.
a
v
New York
•/
V-ia-r
(4) To undertake public financ¬
Jerome F. Tegeler
j
on a
regional/basis where
v ;
Denfpsey-Tegeler & Co.,
suitable 1 since the regional dealer
St. Louis
f
can very often win the confidence
> •'
of both the management and the LeRoy A.' Wilbur
nearby investing public more ably v Stein Bros. & Boyce, Baltimore
than the larger firms in the major
ing
financial communities.
seated, .right, RiE., Panama's Ambas¬
United States, and,
| standing,left to right, Sanford L.
^
Smith, 1 Vice-President - of The
sador
Dominick & Dominick, v
r:
of stock;
^
Spurdlev-Vi
emonies
cardo Arias
BANK
OF
CHICAG6
1
60
(2576)
The Commercial and Financial Chronicle
Continued from page 28
,
VI
,
John F.
■
•
*..
Thursday, Deeember 18,1958
Curley
APPENDIX A
_
,
y.
Uniform
Coihmercial
The Uniform
Report of DA State
was
Paine, Webber^ Jackson &
Code
adopted in Kentucky; to be-
.^dP?5!?-
effective
>■'
;
1
„
;
Recommended Procedure
for Organization and Opera-,
tion -of Group Ldgistation
'New;York
Commercial.Code
■
July l,1960. The".; Paeifi^c^oi^west Company, ^ .-.
com77iittees. ) i
C
previously urged that in,
,^.Qa
;}'
Wy;71
(1) Organization of Committee: &>
any state where the Uniform۩m- ^StanleyR. Dickover -v.
; 4 .o.
-(a) AppointChaiFmanandmemmercial Code is considered therev 2 Elworthy A;
Co., San Francisco
bers for 'following year
priori io
should be included an amendment
come
-
IBA has
■
Ralph G. Elam !
"
protected in transferring secu¬
Annual Convention:
:i - >':'iv\',
which
declares
that
investment .v,.
rities registered in the name of a
Sweney Cartwright & Co.,,
V ;
(b) Include, at least one represecurities subject to Article 8 iof
of Commissioners on Uniform trustee, if they make sure that the
Columbus \:Z .?■>;
V*
sentative from each state in IBA
the Code (which include municiState Laws A copy of this Uni¬ trustee's signature is genuine, that
John „ Em
' -V •r. Group.
zy'riA
form Act, with the official com¬ they have received no written no¬ pal bonds) are negotoble instru-..
Courts & Co- Atlanta
( c) Include some men .who have
ments and which provide
pertain.
■*'
~
r ;
ments on sections of the Act,; is tice that the trustee has eeased to
served on Committee
during eur' Ejwworth ^
attached as Appendix D.;The Key act as such and no notification of presumptions with respect
;d' ._
•J rent year ; arid- are familiar with
signatures and defenses on such;^n- &
provisions of this Act provide that: a claim of beneficial interest ad¬
background of m att e i*s ■ before
Seattle-v. v. securities.
The 1957 official ediverse to the transfer, and that the
(a) A corporation or transfer
Committee, so. as to-provide corition of the Uniform
Commercial:...Geo«rH,>C, Green i
\
tax laws have been complied with.
tmuitv and fvvn#>runw»A
'i
agent registering a security in the
Code includes the recommended ;. The Liberty. National Bank and
Where the assignment is made by
^^ rdi
name of a person who is a fidu¬
lnclude some eanable and
amendment, and the recommended: 4:-Trust Company, GWahbma
a fiduciary who is not the
regis¬
ciary or who is described as a
amendment was included in the Charles E. Haleomb > i
tered owner, the corporation and
v - '
duciary security transfers, pre¬
pared by the National Conference
are
•
,
•*
.
'
•
pH''
*
•
'
r
,
—
fiduciary is not bound to inquire
transfer
rect
obtain
existence, extent, or cor¬
description of the fiduciary
t relationship, * and thereafter the
'.corporation and its transfer agent
may assume without inquiry that
•
j the newly registered
tinues
;
to
be
owner con¬
until
transfer agent
the
fiduciary
the corporation or
receives written notice
that
the
-
fiduciary is
longer
acting as
such with respect to the particular
security.
1
; '
;
•
'
no
.
,
agent, must in addition
specified evidence of ap¬
pointment
Uniform Commercial Code adoptedThe
in
Kentucky,
incumbency.
(c) No person (including
transfer of
security by or to
fiduciary including a person who
a
'
First
Boston
Corporation,;.;wittls
Pittsburgh A'
i
'
*
Alex;-Brown
Preparation f«r 1959
a
guarantees the signature of the fi¬
...
Arthur
complete
new
securities
[or
acts
,"
amendments to the present act in
1959.
We urge that, in any
duciary is liable for participation
in any breach of fiduciary duty where
there is any
by reason of failure to inquire adopting a complete
:.
••
thought
1
;,H"
:."eJtin^11^
J*
-i?
of
securi-
Y
^
r
.
Hies
-r
are
'-'-I-
..
a
...
cooperative
;Vj
early in
related
business.
;
,.t
.
work-"
Meet
to^ securities
at
least
each;year
eme^
with:the
securities: commissioner
e
-
-
of
each state in the Group to:: i ;
/
r
Son,
.
v
govern-
active in-
ing relationship with state offieials whose duties and aetiv-
^ f
r
familikr
arp
an
.
(2> Establish
-.
state'&^mpany,.,Houston
new
i
,
already •
Vance, Sanders & Company,
adoption of >'; Boston"
■ r.v-.
;
*
toward
way
whn
operation ^ state
terest^init.
Sons, Baltimore
II. Haussermanu
In several states work is
under
&
mpn
ment and who take
„
F,Barton'(Harvey;Jr.^
or
or
i
:
.
or
a bank
dealer) who participates in the
acquisition, disposition, assignment
,
,
Yey Select
c
.
into the
•
(a) Inform him of identity of
or. amending: the
present *
Louisville
/::
members of Committee' in his
1959, work be. commenced William L. Hurley
-.state.
v.'?:.
:
that a transfer is within the au- that he acted with actual knowl¬ immediately so that the amend- ; • Baker j Simonds & Co., Detroit
merits can be carefully prepared
(b) Discuss any administrative
Marshall H: Johnson
V
; thority of the fiduciary and is not
edge that the proceeds of the' and Well considered in advance of
or
legislative problems of com¬
McDaniel Lewis & Co.,
in breach of fiduciary duty," even
transaction were being or were the legisljative
missioner or industry.
>:i* "*
sessipii.; We. urge
-Greensboro ••
^
though the transfer is to the fidu¬
that all such work be undertaken
(c) Generally, establish an atciary himself or to his 'nominee. to be used wrongfully for the in¬
Quitman R. Le,,yard
titure pf mutual cooperation and
in
close .cooperation
with IBA EqUjtablc Securities
They may assume that the fiduci-' dividual benefit of the fiduciary
confidence;
;
: r
Counsel, and that preliminary.
/
:
;
nary has complied with any con¬ or that the transaction was other¬
..Corporation, Nashville; • -j;
drafts of any such
proposals be
:; (3) Undertake amendment of state
^
^
"
•_
trolling instrument and with the wise in
ff ■:*
breach of duty. '
suuimueu 10 IBA uounsei for
submitted to ida Counsel iur com-.;securities law, or adoption of
com-, >>>L®rttCe -rilZZ-jL- d
MeConnel^Ir:
law, including janfTaw requiring
a new state securities law of
We recommend consideration of ment prior to submission to;the';to; the
:
court approval, and they are not
i
: y
legislature. IBA (Counselron re-'
legislature.. ,IBA-Counsel on re-;
'
a
model -type, or changes ^n
charged with notice of court rec¬ adoption of this Act with a view
quest will draft desired amend- Joseph4X*Muldowhey
•.
<
administrative rulings relatords or Q&hre.r documents even to
minimizing, the problems in¬ ments and
participate in any con- ,»
ing thereto, yvhere such action
Scott & Stringfellovv, Richmond
though in their possession. Thus volved in the transfer of securities ferencos
.is needed to:;-—-;,regarding the proposals.- Paul L, MuHaney-. -T
! -"f.
:*j 7,: "£
the corporation and transfer agent from or
to fiduciaries.
MuUancy, Wells «& Company, •
Respectfully submitted,
(a) Provide more effective pro¬
"
(b) The corporation and transfer
'
agent may
assume
without inquiry
whether the transaction
involves,
ties
act
,
such
brieach unless
a
it is
shown
act
•
in
.
«
•
-
_
-
...
•
.
„
'
-
..
'•
"
■
Chicago;
STATE LEGISLATION
Harry
SIXTY-EIGHT YEARS
Beecroft, Chairman
.
J.
Alexisaen..'.,-^—-^..')
INVESTMENT
A. M. Law &
f-/
j
^;
Stifel, Nicolaus &. Company
IN C OR PORAT5P
San Francisco
....
W. W. Keen Bnteher
Butcher
j
.
Iy,];
&
Sherrerd,
Philadelphia
-j
AMERICAN STOCK EXCHANGE
(Assoc.)
'
Lyman W. Cole
LOUIS, MISSOURI
Kalman &
Company, Inc.,
Minneapolis
CHICAGO, ILLINOIS
Moline, Illinois
Private
Between St. Lauis and
Chicago Offices
Hayden, Stone & Co., New York City
4
•
"*.
"
Denver
-
-
■.
It
Co., Int.,
be
in
that; such
*
undertaken,- where
close
cooperation
T."
\,
Listed & Unlisted Securities
-
drafting the amendments and par¬
ticipating in conferences, and his
assistance should
coordinate
local
be requested to
legislation with
general recommendations of the
Association and to obtain the bene¬
fit of his experience in this field.
'
•
:
Check proposed legislation af¬
fecting the securities business
:
and
to
take
appropriate
encourage
the
Straus, Blosser
MEMBERS NEW YORK STOCK
EXCHANGE
DETROIT STOCK EXCHANGE
•
&
•
McDowell
:
<
°
Municipal Bonds
r ~-1
i
i
MIDWEST STOCK EXCHANGE
Investment Division
AMERICAN STOCK EXCHANGE
(ASSOC.)
',
39 SOUTH LA SALLE STREET
v"
^
*
'
•
-
<
.
CHICAGO 3, ILLINOIS
■3
1
NEW YORK
DETROIT
TELEPHONE
:
KANSAS CITY
ANdover 8-5700
TELETYPE
AmeriCttii National Bank
MILWAUKEE
fl-
'V
.
,
•*
/
any
CG 650
Retail
LA SALLE
T rading
r?
i-
^
»
GRAND RAPIDS
MT. CLEMENS
J
I
MEMBER
'I
i
t
ii
AT
'
WASHINGTON
J
....
.
- -
•
of Chicago
FRANKLIN .2-9200
...
FEDERAL DEPOSIT INSURANCE
action
adoption of
•
State and
pos¬
with
the state securities commissioner.
The Assistant General -Counsel of
U. S. Government
U nderwriters—Brokers
or
orderly conduct;'Of
is; recommended
sible,
Albert Theis & Sons, Inc.
St. Louis
' -"
'' "
Cleveland
the
.
Harry Theis
(
on.
the IBA will give any desired as¬
sistance in- this -work, including
-
'
'
;
Garrett-Bromfield & Co.,
-
'' (
.
state and.federal
,<d). Eliminate unnecessaiy bur-
(4)
Richard J. Cook
Wra. J. MerickR &
Wire
and to
*"
■
:
Malcolm F.- Roberts
.
MIDWEST STOCK EXCHANGE
r
.:
work
~
-Paine, Webber, Jackson &
Curtis, Boston C;
*/.
;v
-
.
Pierce
Cruttenden, Podesta & Co.,
Chicago ■•"'/; v
'
: '
-h
;..
(c)'Coordinate
;
fair and honest securities business.
-
,
.
Blunt EUis & Simmons, Chicago
Albert Pratt
-
NEW YORK STOCK EXCHANGE
t
ST.
.
with
dends
Robert A. Podesta
Brush, Slocumb & Co., Inc.,
v
»
.>
Rauseher, Pierce & Co., Inc.,
Y:^
greater .uniformity
the laws artd procedures, in
requirements rand procedures;
Barret; Fitch, North & Co.,
Incorporated;-Kansas City
6.
Obtain
other states.
Dallas
Gerald F. Brush
..
-
C.-Bradford & Co., Nashville
Charles
Company,-Inc.,
Spartanburg
Co., St. Louis
Gilbert II. Osgood
„
Co., Detroit
Henry J. Blackford, Jr. ^
BANKING
;,
(b)
-
;
Frank W. North
Granbery, Marache & Co.;
' / " V v
New York
Walter A. Bayer
F. J. Winckler
"
1
Einer Nielsen
;,
of
•
:
.
' ~~
G. H. Walker &
Beecroft, Cole & Co., Topeka
Gustave A.
tection for investors.
■
•
George "A. Newton
J
COMMITTEE
.
*
CORPORATION
-Velume
188
Number 5804
The Commercial and Financial Chronicle
: : \
61
desirable
■'*■■■■
legislation
and
to sirable
to
obtain
satisfactory brokers, dealers and salesmen the
oppose the adoption of unde-'. compensation for state officials to, date of each
entry.
sirahle legislation..
attract competent persons to the
^
fraud
a
purchasers
on
of the net
thereof."
earnings of iVh&h in¬
profits
ures to the benefit of anx
ing stockholder
,(3) Section 707
i (i)-Se^k,( encourage and support
(registration by
;; j
/
to keep in 'regular contact
LOUISIANA
;
,_X notification) was amended to
<5> Section 719
aiHikkded to
with^state ' officials so that they
eliminate a requirement that each
provide that applicants for regis¬
ab^^ intelligence
v^bm to contact ;a^ Sepre- y The- following amendments to
.the Louisiana Securities Act
were* dealef must file a notice with the tration. of securities must
rity as state dfficiais, partieu-. sfentatfyRs of;^he securities indu#pay ail
the appointment of. persons, of
-
ovi.
work
7r
^
,
adopted effective July 30} 1958:*
y Commissioner before selling se¬ examination fee of $25 in addition
■£. vr. iarly-as securities Commisdiscuss administrative ; or 1
(1> Subsection 11 was added to curities. which have been regis¬ to the fee for registration, of se¬
..''-y.VVsioners. - 5-'• v1
">"* legislative problems} and to protered by notification.
curities.
l X
X y
'.X XX
vide cooperation and support„to Section 51:704 (exempt securities)
;
_
-
-
X;'XX:::X Comments
administrative officials when they to exempt any security not having
a
fixed return, which has been
;f ' The state legislation committee Xre confronted with problems. /
f
IB A Group
provides.; valuy ^
of state Tegis- outstanding in the hands of the
4 ^Ie! opportunities f dry a member, Jatfgjn affecting the securities busi- public for a period of not less than
three years,. the "issuer of which
increase his knowledge pf state
:^'s% there; is available model leghas had a net income after taxes
government-and its functions and^^isJjatidn.
tbefrefore, it is: always
y administration, and at' the; safne desirable to communicate with for a continuous immediately pre¬
time" to
perform
art-important IB A Counsel regarding "proposed ceding period of not less than
y
,
*
service
for
the
investment
ing profession. The f
'.checklist
>,
*
*
or recommended
available
pro-
and
to
coordinate
(2)
legislation, makes: for
ernment
Subsection II
theretofore sold and distributed to
the public, provided that:
"(a) Such securities are sold at
designed .in*
separate parts embodying prices reasonably related to the
good gov-' three separate types of regulation, current market price thereof at
good three
intensive
.
the commission collected
by such
registered dealer on account of
the Sale thereof is not in excess of
selling of 'ideas fraudulent and certain prohibited
r
\L \ practices. Part 2 covers the regis-
in the form of laws.
.
.
"
legislative "work conX
cerning the regulation of the sale
of securities a fundamental basis
Nation of broker-dealers, agents
an(f investment, advisors, Ipart 3
^overs' the/registrationc/of .securiand objective should be
recoghi- ties.' Part 4 includes general pre¬
dion of investment banking as a visions covering definitions,
.profession in which only respon- exemptions,
administration, ensible and honest persons should forcement cnmina1 penalties and
t engage.: ;Thus, estate^ legislation
liabilities. I" v accord with
In all state
'
usual and
customary commissions
collected with respect to securities
and transactions
having compa¬
'
rable
<■
X regulating the sale
best, when - it protects
investing public", from-irresponsiwhose
persons
by
judgment-is
greed: ibut. permits
>
.
of
rpanlatinn
'
•
"
■.
.
or
.
.
...
.
/function of legislation committees
-
oi&ls
are
>.
;
i
was
issuer
an
A
re¬
Law
selling
J '
new-
Mississippi Blue Shy
adopted effective hChpB,
was
register as a 1956, This law embodies baakaBy
corporation organized, the provision of die previews wt
securities must
dealer,
any
with
exclusively for religious, educa¬
the
foilow-iitg prhhrtpal
tional, benevolent, fraternal, char¬ changes:
r/'V
itable or refunding purposes and
(l> ft provides for
..X
regfcttttifn
.
not for
:
i
pecuniary profit, no part
Continued
<m
t
DISTRIBUTION in the heart of
With 121
registered
whose
related to
, s
wi%^tate> <?Mih&
and; activities
duties
the
securities busi-
nessP This
;
Summary of Amendments to
Sky Laws
state
18
as
a
offer
for
widespread sound
months
such
year
CONNECTICUT
»
exceptional
or
a
Ckl!
of
PODEsTA
n ENDEN,
&
O
i
by
and
or
0l«
'' I '
-■'
securities
<
i
'' s
\'
! i
' K
t
OLurbon, 2-0J0O
/i
/,
.i»k
r
A«.JK fit
r ►
j
,
tt>
i kj '
Cv.V' A
r
; >■.;
.aan[)
,
I
!
! <!'
'
•
TpI<
.
\ :
'
1' !
i
1 \:'
)'
;
v
CG'<C.
•
PAf';i
■"
;
balance sheet of the
of a date not
sale,
'statement
>
activity includes ob- ^ Section 5982 of the Connecticut
taining the appointment of Securities Act was amended effeccompetent officials,
as
well
as tive April 25, 1958 to eliminate a
establishing a cooperative rela- requirement that the Bank Comtionship with official. It is do- missioner enter on the register of
we
of the issuer's officers and
directors,
issuer
APPENDIX B
wdrk~v
from Denver to New
Standard
Fitch's
or
representatives in 49
con¬
to
underwriter;
Either Moody's,
'
tp .establish a
coop^atiye
ing relationship
an
Poor's
names
for
Equally
-
salesmen)
quirement" that
its
proved m disapproved the Urn- manuals, or, any other recognized
2-; adPPt1Qn, but the .securities manuals approved by
a modified}draft the
commissioner, eontains
the
ommends
.
"(c)
.
of the Uniform Act which it..rec-
,
■
through
and
adoption in those
y
.;
important with . sound -stateg where' adoption of the UniJegislafion is honest, and intellif0rm Act, or parts thereof, is conSvP ' administration ol the law templated.
,
-Therefore, it is also an important
v
;
„
do not
unsold allotment
an
such securities by the issuer
Qf rthe typer of state regulation
: most ^appropriate, for-that: state,
Association has neifoer._ap-
;the orderly conduct'of the securities business by Responsible and i
honest persons; with a mihimum
/
and
placement of securities.
subscription by such dealer as
participant in the distribution
J®A policy of leaving to the memthe ,^r?u
®ach .state determination
at : its
tempered
stitute
of securities is
r
characteristics; and
"(b) Such securities
'
^'bie^
dealers
amended to exclude frOm the
X MISSISSIPPI
and
'good : citizenship.ipl^s a fourth part containing gen- the time of sale, and if such reg¬
-Legislative work is, in one sense, .eral 'provisions.
Part 1 covers istered dealer is acting as
simply
■
•
agent,
*
^
t
added to
was
Section 51:705
(exempt transac¬
tions) ta exempt: "The sale by a
registered dealer, acting either as
principal or agent, of securities
the
•''•>£.j /.State Securities Act
work for
'
*
-
simply a guide for the^ proposed legislation with
generaal
mechanics of organizing and oper- recommendations of
the Associaating the Committee. These vom-etior*."
Witl^., particular / regard to
ments are intended to
supply : a state securities laws, it should be
little of : the
philosophy of the noted that there: is a Uniform
'XXGood legislative
"
bank- legislation to obtain the benefit of
regoing any^model legisiation that may be
cedures is
**
:
o
three years.
(4) Section 710 (registration of
prior to
and
a
for
either
preceding
than
more
the
date
profit and
the
that, date
of
loss
fiscal
or
the
most recent year of operations.
'i/ypte o UC.
"The commissioner may revoke
the
exemption afforded by this
^subsection with respect to any se¬
curities by issuing an order to
that
effect
if
he
finds
that
*%tVGSfmGnie<f?ecunYi'es
MEMBERS
the
further sale of such securities; in
this State would work ox- tend to
NEW
YOKK
MIDWEST
STOCK
STOCK
AMERICAN
EXCHANGE
EXCHANGE
STOCK
EXCHANGE
ASSOCIATE )
UNDERWRITERS AND DISTRIBUTORS
PRIVATE FINANCING
'»
135
SOUTH
LASALLE
CHICAGO
TELEPHONE
STREET
I
3
STATE
WALL STREET
NEW
2-310O
YORK
TELEPHONE
CITY
DlGBY
5
4-5656
A. G. Becker & Co.
incorporated
Established 1893
Stocks
Corporate and Municipal Bonds
a
Commercial Paper
Unlisted
*
Trading Department
Members
New
York
Stock Exchange
Exchange
Midwest Stock
^
:
,
t
American Stpck Excbang*
Pacific Coast stock Rxchanft
120 So. LaSalle St.
Chicago 3
Telspheas:
i
Fltaakiin 3-6100
Teletype: CG I ODD
Sea FVaaeieco and
60
Broadway
Bcw York 4
*
62
•The Commercial and Financial
(2578)
Continued
Chronicle
(d) ."Fiduciary" means an exec-;
subject to the - utor, administrator, trustee," guar¬
requirement and who fails to file dian, committee, conservator,
the required Certificate shall be¬ curator, tutor/ custodian" or
come void as of May 31,1959.
*
:
; nominee.
(e) "Person" includes an indi¬
•; V appendix c
'
: ,v/; vidual, a corporation, government
Summary of Amendments to
' or governmental subdivision or
State Legal Investment Laws
agency,
business
trust,
estate,
in \ Adopted in 1958.
trust, partnership or association,
ijiation, the dealer's statement of.
from page 61
each dealer who is
r
Report oi lBA State
)
..
(6) A new provision was added
that, after a registered dealer has
"dealer" who is authorized to en¬ registered an issue of securities,
gage in a genera 1 securities any registered dealer may there¬
after sell such securities.,
business).
V
curities specified by the Secretary
of State (as distinguished from a
(2) Provision is.made for hear¬
by the Secretary of State
whenever he has issued an order
■%■:! Z
ings
' NEW
YORK''Z ■. ^
two
CONNECTICUT
Section 5815 of the Connecticut
Legal Investment Law for Sav¬
ings Banks was amended effective
April 25, 1958 by adding a new
ment
assets
of
and of the
of savings banks
savings departments of
banks and trust companies
(in addition to other investments
state
Several amendments to the New authorized
by law) in the obliga¬
forbidding the sale of any securi¬ York Blue Sky Law were adopted, tions of regional school districts in
ties or refusing or suspending or the principal of which were the the state, provided that not more
* .,v ■% A than 6% of such assets are so in¬
revoking the registration of any following:
person as an investment company,
(1) The authority of the Attor¬ vested and riot more than 1% of
dealer, limited dealer or agent.
ney General to
investigate was such assets may be invested in the
(3) Some of the exemption pro¬ extended to include investigation obligations of any one such're¬
,
visions
are
classes
new
modified and several of fraudulent practices in the pur¬
i
/
I
of exempt transac¬ chase of securities.
.
gional school district.
•
are added.
(2) The lee for filing each deal¬
(4) The filing fee for securities er's statement was increased from
(which is based on the amount of $5 to $10. The fee for filing each
securities), was increased so that supplemental dealer's statement
the minimum fee for securities was increased from $2.50 to $5.
was
raised from $25 to $50 and The fee for filing each sworn
the maximum fee for securities statement was increased from $2
to $4.
was raised from $250 to $500. The
fee for dealer registration was in¬
(3)
A new section (Section
creased from $25 to $50 and the 359-ee) was added requiring every
fee for registration of agents was
person who filed a dealer's state¬
Increased from $5 to $10.
ment on or before June 30, 1953
NEW YORK
tions
(5) A new section was added to file in the Department of Law
restricting the qualification of se¬ on or before Feb. 1, 1959 a signed
vestment of
of
York
amended
not exceed 2%
the admitted assets of the in¬
and provided that this subsection
shall not be deemed to alter any
limitation
or
more
persons
having
ing
as
such with respect to the
particular security.
provided in any other
'
Comment: This section
'
assumes
ofx section on- tho- atr effective assignment
by or on
amount which may be invested in behalf of the old
registered owner,
any of the, authorized types of in¬ and negates any duty to inquire
vestments, except that a limitation into the fiduciary status of the
of one-half of 1% of assets on in¬
newly registered owner. In the
vestment in corporate obligations
not otherwise qualifying shall not
Section
.
'
/
19-9-29
of
the
of
his
decedent
name of
the
ex¬
such, .Section 4 r isv alsp
as
•applicable^;,
the registered owner shall obtain
the following evidence of appoint¬
ment
or
incumbency:
(a) In the
appointed
a
of a fiduciary
case
qualified by a court,
by or under
direction or supervision of
or
certificate issued
the
that
court
or
an
officer
and dated within 60
the
transfer;
or
behalf of
tion 3 deals with any later trans¬
fer out of the trust. If an assign¬
thereof
days before
■
believed
ment is made
RHODE ISLAND
•
securities
registered in the:
(b.) In any other case, a copy of
ordinary case of an inter vivos
trust, this section deals with the a document showing the appoint¬
transfer to the trustee, and Sec¬ ment of a certificate issued by pr
extent of an addi¬
% of assets.
have
ecutor :
^5.-;
subdivisibii
apply to the
.
a
fer agent receives written notice
that the fiduciary is no longer act¬
of the preceding Dec. 31;
surer as
•
Associate Members American Stock Exchange
reserves was
investments shall
tional 1
1
New
1958 by adding
(15) to authorize in¬
vestments which do not qualify
under any of the specified classes
of authorized
investments; pro¬
vided the aggregate cost of such
Members New York Stock Exchange
v;
the
subdivision
Robert W. Baird & Co.
Members M'dwest Stock Exchange
of
effective April 9,
port of Existence." After the At¬
ized the issuaqge, and
or has
torney General gives notice to
negotiated or contracted for the each dealer to whom this require¬
issuance of, optional, pre-organi- ment applies and issues a procla-
'l'"i
81
Legal Investment Law for Insur¬
ance
Companies, applying to in¬
"Certificate of Re¬
certified
and
curities if the issuer has author¬
Section
tion 3 apply. If the assignment is
made by a fiduciary who is not
the registered owner, as in the
case where an ^executor, seeks to
.
subsection 15 to authorize invest¬
,
Thursday, December 18,1958
SECTION 3. [Assignment by a
Fiduciary.] -Except as otherwise
provided in this act,, a corporation
joint or common interest, or any or transfer agent; making a trans¬
other legal or commercial entity. fer of a security/pursuant to an
; •: '
(f)
"Security"
includes
any assignment by a fiducimY.;
(a) May'assume without inquiry
share of stock, bond, debenture,
that the assignment, even though
note or other security issued by a
to the fiduciary himself or to his
corporation which is registered as
to ownership on the books of the nominee, is within his authority
and capacity and is not in breach
corporation.
; ■
V'[
;
of his fiduciary duties;
(g) "Transfer" means a change
(b) May assume without inquiry
on the books of a corporation in
that the fiduciary has complied
the
registered ownership of a
with any controlling instrument
security. ;
and with the law of the jurisdic¬
?
(h) "Transfer agent" mekns a tion
governing the fiduciary rela¬
person employed or authorized by
tionship, - including any law re¬
a corporation to transfer securities
quiring the fiduciary to obtain
issued by the corporation.
court approval of the transfer; and
SECTION 2. [Registration in the
(c) Is not charged with notice
Name of a Fiduciary.] A corpora¬
of and is not bound to obtain or
tion or transfer agent registering
examine any court record or any
a security in the name of a person
recorded or unrecorded document
who is a fiduciary or who is de¬
relating to the fiduciary relation¬
scribed as a fiduciary is not bound
ship or the assignment', even
to inquire into the existence, ex¬
though the record or document, is
tent, or correct description of the in its
possession.
fiduciary relationship, and there¬
SECTION 4. [Evidence of Ap¬
after the corporation and its trans¬
fer agent may assume without in¬ pointment of Incumbency.] A cor¬
poration or transfer agent making
quiry that the newly registered a
transfer pursuant to an assign¬
owner continues to be the fiduci¬
ment by a fiduciary who is not
ary until the corporation or trans¬
,
dealers" who are de¬ zational, or incentive shares
excess
of a specified percentage
fined as dealers authorized only
to sell or offer for sale a certain of the authorized capital of the
Issue of, or a certain class of, se¬ company, v:• Vof "limited
...
transfer
by one fiduciary to
another, both this section and Sec¬
Rhode
on
a
reasonably
person
by the corporation or
agent to be responsible
or, in the absence of such a docu-
Island Legal Investment Law for
MILWAUKEE
....
Green Bay
•
Oshkosh
♦
Madison
Marinette
•
in Savings Banks was
amended effective May 10, 1958 to
raise from 2% to 5% of deposits,
Deposits
•
Sheboygan
•
Wausau
the
SPECIALISTS IN WISCONSIN SECURITIES
NEW YORK CORRESPONDENT
/' CLARK,
DODGE & CO.
;
ROBERT W. BAIRD & CO.
INCORPORATED
mEPHONE
■
UNDERWRITERS OF SECURITIES
WHOLESALE DISTRIBUTORS
'
''
'v'.'
•
;
*
;
]■
:u;vv| i
BELL TELETYPE: Ml 291
may
be
in¬
McDougal and Condon
Rhode Island Fraternal Benefit
Societies were authorized, effec¬
tive April 25, 1958, to invest funds
only in such securities as are au-,
thorized by Rhode Island Law for
the investment of assets of life
insurance companies. Such socie¬
.
BRoadway 6-0525
which
specified requirements.
,
i
...
amount
vested subject to the prudent man
rule in corporate stock nieeting
Incorporated
Municipal Bonds
ties Were previously permitted to
invest only in securities author¬
.!
investment of assets
ized for
of
208 S. La Salle St..
Rhode island savings banks.
Chicago 4, 111.
tf
'■■■.
Teletype CG 276
■
APPENDIX P 'Jr \ ^
Uniform Act for Simpiifiof Fiduciary Security
Transfers.
v
;r7
-
cation
[Be it enacted.
;
.
.
^
*
.]
.
UNDERWRITERS
SECTION 1. [Definitions.]
In
this act, unless the ^context other¬
wise requires;'
/ : \ ^. ;
trust
or
other
Instrument
•>
■
;""' **•
/
■}
MUmfegt
'
Mtock*
(a) ^'Assignment", includes, any
Written stock power, bond power,
bill of sale,- deed,: declaration of
transfer.
A
MEMBERS
■,
DISTRIBUTORS
1?
Exchmngm
j
\
of
r
;
;
(b) "Claim of beneficial, inter¬
est"; includes a claim of any/in¬
terest by a. decedent's legatee/distributee,. heir, or creditor, a bene¬
ficiary under a trust,' a ward, a
beneficial owner of a security
registered in the name of a nomi¬
nee, or a minor owner of a secu¬
rity registered in the name of a
custodian, or a claim of any simi¬
lar Interest, whether the claim is
asserted by-the claimant or by a
CORPORATE ANP MUNICIPAL BONDS
~
INVESTMENT STOCKS
.
-
MELLAlVEYvWELLSA COMPANY
,
by any other author-'
feed persononhis behalf, and in-pludes a, claim r that the .transfer;
Would be in breach of'fiduciary-
fiduciary
duties.
or
•*5 V:
■''' -W: *
(c) ^'Corporation" means a Pfi-;
vate or public corporation, asso¬
ciation" or trust issuing a security;
13S S. LA SALLE ST.
.
■
•
_".
FMLM-
■
CoilCACO
'.->V 'iT-
•
:
v •'
twx-*a
i
im
* '
»
it
••:•
.
■%
Volume 188
Number 5804
.
.
The Commercial and Financial Chronicle
.
(2579)
ment
or
certificate, other evidence
treasonably deemed by the corpo¬
ration or transfer agent to be ap¬
transfer
pursuant, to
ment by a
assign¬
an
or that the transaction
was other¬
wise in breach of duty.
fiduciary,
a corporation
which has re¬
propriate. C o r p o r a t ions and ceived notice of a claim of bene¬
transfer agents may adopt stand¬ ficial interest adverse to the trans¬
ards with respect to evidence of fer
may send notiee of the pre¬
appointment or incumbency under sentation by registered or certi-
'
'this
subsection
standards
reasonable.
tion
provided
not
are
manifestly
Neither the
nor transfer
such
un¬
corpora¬
agent is charged
or
transfer
agent
given by him.
relate
appointment
or
'
Comment: As noted above in
the Comment to Section 2 one of
\
\ the instances of the
application of
this section arises when an execu¬
nature of the
If the corporation
less
restrained
by
incurs
un¬
■
•
v,
-
tor seeks to have securities of his
Comment: Unlike Section 3 of
decedent registered in his name the
Uniform Fiduciaries Act, this
as executor.
section contains no
;
SECTION 5.
(a) A
of
[Adverse Claims.]
asserting
person
beneficial
interest
the transfer of
a
claim
adverse
to
security pursuant
to an assignment by a fiduciary
may give the corporation or trans¬
fer agent written notice of the
a
claim. The corporation or transfer
agent is not put on-notice unless
the written notice identifies the
"
-"claimant,
the
registered
and the issue of
owner
which the
secu¬
rity is
for
a part, provides an address
communications directed to
the
;
claimant and is received be¬
fore the transfer.
relieves
act
Nothing in this
the
corporation
or
'transfer agent of any liability for
making or refusing to make the
transfer after it is
of
tion
(b)."<
(b) As
,w
the presentation of a security for
knowledge"
of
Elects New Officers
.
PHILADELPHIA, Pa. —Robert
the
was
knowledge
by
the
actual
that
the
were
proceeds
the
Dec. 18.
Forum will be held at
3 p.m. in the Adams Room of the
annual
election of the
■
held Thursday
the
evening at the
Mask
Club.
&
'
;
being or were
dividual
benefit
of
Co., wiU
discuss the stock market.
tion and
The
l
answer
entire
A ques¬
period will follow.
is free
program
elected at
Robert
T.
Arnold
nr-AOTT
i
i-
t
With A. E. Aub & Co.
(Special to The financial Chroniclb)
CINCINNATI, Ohio—Howard E.
Phillips is joining the staff of A.
E. Aub & Co., Fifth-Third Bank
Building. He was formerly with
Bache & Co. and in the past waa
an
officer
of
Smart,
Clowes; 8s
Phillips, Inc.
-
,
Beauchamp, West
to Admit
Beauchamp, West & Stava, 115
Broadway, New York City,
mem-
kers of the New York Stock Ex_i,oritto
1Q.,trSl,
__
.
ited partnership.
'
"■
rt"r*t"
corporation and its transfer
agents with regard to acts and
omissions in this state in connec¬
tion with the
acquisition, disposi¬
tion, assignment or transfer of a
security by.
to
or
Brokers and Dealers
fiduciary and
a
of a person who guarantees in this
state the signature of a
fiduciary
in connection with such
NOMGARD, SHOWERS & MURRAY
action.
INCORPORATED
105 W. Adams
'
a
trans¬
f
:
SECTION 9. [Taa; Obligations.]
This act does not affect
any obli¬
;
aam a. jruner
gation of
St., Chicago 3, Illinois
agent
a corporation or transfer
with respect to estate, in¬
heritance,
taxes
succession
Members Midwest Stock
other
or
imposed by the laws of this
state.
209 S. LA SALLE ST.
Exchange
CHICAGO
•
Tel. DEarborn 2-5600
4, ILL.
Teletype CG 146-147
SECTION 10.
[Uniformity of In¬
terpretation.] This act shall be so
Underwriters and Dealers
construed as to effectuate its gen¬
eral purpose to make unifrom the
law of those states which enact it.
MUNICIPAL and PUBLIC REVENUE BONDS
SECTION 11. [Short Title.] This
;
.
act may be
Act
cited
as
the Uniform
for
Simplification of Fiduci¬
Security Transfers.
ary
Rodman
&
Renshaw
SECTION 12.
[Repeal.] The fol¬
or parts of acts are
repealed: [Section 3 of the Uni¬
form Fiduciaries Act
.]
Telephone
>
Teletype
DEarborn 2-6363
;■
Members:
lowing acts
K
CG 385
.
i
.
New York Stock
Exchange, American Stock Exchange (Assoc.)
Midwest Stock Exchange, Chicago Board of Trade
'
>
SECTION
Effect.]
effect
13.
This
*
[Time of Taking
act' shall take
■
Chicago Mercantile Exchange
■
....
209 SO. LA SALLE ST.
CHICAGO 4
Twin City Women Hear
MINNEAPOLIS, Minn.—Munic¬
Trends during the past 15
years was the subject of Stanley
R. Manske, First National Bank
Telephone DEarborn 2-0560
ipal
LINK, GORMAN, PECK 4 CO.
Teletype CG 2296
of St.
cent
Established 1931
Paul, who addressed a re¬
meeting of the Twin City In¬
vestment
Women's
Club.
With Price, McNeal
UNDERWRITERS and DISTRIBUTORS
Vail
MUNICIPAL BONDS
W.
Cummings has become
Price, McNeal &
Co., 165 Broadway, N. Y. C.
affiliated
Complete Trading Facilities
Industrials
Railroads
«
A ;
208 SOUTH
Bell Teletype
to
CKldAGO
115
'
4
Wisconsin
Wisconsin
'; t
•
Milwaukee
WTisconsin
of
in
Illinois
of
Goodbody & Co.,
Broadway, New York City,
Exchange,
as
a
registered
years,
the
underwriting
municipal
bonds
and
for
77
and offer you experienced, prompt service.
repre¬
.
H. C.
"
With Lakewood Sees.
La Salle
Illinois
specialized
t
"r2- i
sentative.
CG.12A? AjTelephone STate 2-7844
GreehiSay
staff
have
distribution
members of the New York Stock
"
Appleton
the
Since 1885
We
Jay E. Haynes has been added
Municipals
JLA^SALttE STREET>
with
Goodbody Co. Adds
Public Utilities
(Special to The Financial Chronicle)
-
LAKEWOOD, Ohio —Henry S.
Hershey is with Lakewood Se¬
curities
Corporation,
troit Avenue.
14714
Speer & Sons Company
ESTABLISHED 188S
«
De¬
Field Building
.
j
135
'
,
So. La Salle St.
CHICAGO 3
Telephone
—
...
g ' on •Dec* 18 w ^ admit
Thomas T. Beauchamp, Jr. to lim-
the
the fiduciary
to
members; tariff for guests $2.50.;
Other of fir J
cers
Gamble
&
&
Co., will cover the money
market;
and
Walter
Maynard,
Shearson, Hammill & Co., will
term
expired.
Procter
speak on the business outlook.
Robert Van Cleave, C. F. Childs
Wig
Mr. Ar¬
whose
Midland Hotel, with the reception
University Room.
Wilson Wright, economist for
at 5 p.m. in the
Association
corporation is organized.
(b) This act applies to the rights
hnd duties'6f a person other than
of
s.
elected President of hold their
annual forecast pro¬
Association of gram and Christmas
reception on
meeting and
T
i
Investment
Philadelphia
at
V.
CHICAGO, 111.—The investment
Analysts Society of Chicago will
T. Arnold of The First Boston Cor¬
poration
knowledge of the organiza¬
the meeting
tion, but liability is not to be im¬
were H. Gates
Lloyd, III, of Drexel
posed "merely because it appears
and abets a fraudulent conspiracy,
& Co., Vice-President; Herbert S.
that at some stage
by piecing to¬
there is of course no intention to
gether all the facts known to dif¬ Bengtson of Schmidt, Roberts &
impair the responsibility imposed
ferent employees a breach of trust Parke, Secretary; and Frank J.
by the general law of torts.
Murray of Bache & Co., Treasurer.
would become more or less
ap¬
SECTION 7. [Non-Liability of
The following were elected to
parent." See Scott, Participation
Third Persons.]—
the Executive Board of the Asso¬
in a Breach of
Trust, 34 Harv. L.
ciation: Marshall Schmidt of Horn(a) No person who participates Bev. 454, 481 (1921).
blower & Weeks; Edgar Scott, Jr.,
in the acquisition, disposition, as¬
SECTION 8. [Territorial
Appli¬ of Montgomery, Scott & Co. and
signment or transfer of a security
cation.]—
Mr. Hiestand.
by or to a fiduciary including a
(a) The rights and duties of a
person who guarantees "the signa¬
corporation and its transfer agents
ture of the fiduciary is liable for
Joins J. A. Hogle Staff
in registering a
security in the
participation in any breach of fi¬
name of a
(Special to The Financial chronicle)
fiduciary or in making
duciary duty by reason of failure a transfer of a
security pursuant
LONG BEACH, Calif. — Leonto inquire whether the transaction to an assignment
by a fiduciary hardt K. Anderson has joined the
are governed
involves sueJi
by the law of the staff of J. A. Hogle &
upless it
Co., 147
is shown that he qcted with actual jurisdiction under whose laws the East First Street.
the transaction
,
for
individual acting for the
organiza¬
tion in the transaction is of course
practicable after to be used wrongfully for the in¬
soon as
exception
an
"actual
put on no¬
tice, unless it proceeds in the
;
manner
authorized ■" in ^ subsec¬ knowledge
so
"actual
organization,
exception for
knowledge" or
"bad faith." But if a corporation
or transfer agent
consciously aids
cases
an
Philadelphia Inv. Assn.
wrongdoing. In the case of an
nold succeeds
individual, conscious knowledge
Harry K. Hieof the fiduciary's
wrongdoing is stand of
Reynrequired to bring the exception
olds & Co.,
into operation. In the case of
-
:•
makes
of
cases
no liability to
any person
by making a transfer or otherwise
acting in a manner authorized by
'•
liability.
no
section
incurs
•
fiduciary is not lia¬
Comment: Subsection (a) of this!
SECTION 6., [Non-Liability of
Corporation and Transfer Agent.]
A corporation or transfer agent
this act.
sig¬
its transfer agent.
or
court order.
a
fiduciary,
a
(c) This section does not impose
any liability upon the
corporation
mailing and
shall then make the transfer
assignment by
on the guarantee to
any person
to whom the
corporation or trans¬
fer agent
by reason of this act
transfer agent so mails such a
notice it shall withhold the "trans¬
document obtained pursuant to
this paragraph '(b) except to the
an
person who guaranteed the
ble
or
fer for 30 days after
directly to the
incumbency.
to
a
mail to the claimant at the address
with notice of the contents of
any
-^extent that the contents
(b) If a corporation or transfer
agent makes a transfer pursuant
ea
RAndolph 6-0820
"
—
4
%
—-rrr*'
-
"
64
The Commercial and Financial Chronicle
(2560)
th^ir: shareholdersTthe;
Report of IBA Investment
Companies Committee
The Securities
Research Unit 'of
Taxation by States and Terri¬
tory* of Capital Gain Distribu¬
tions
Investment
Legislation was
Regulated
of
Companies
—
enacted this year in Georgia which
provided for the taxation of capi¬
tal gain distributions of regulated
investment companies at capital
N.A.LCr^carrWs
granted the petitions for certiorari *frig public,
'-;:fy
which had been filed by the SEC
Publications and Booklets: The
and the NASD.
The NASD had National Association of Invest-
on
^several
con-
tinuihg projects. r.These include
the.annual' presentation of a Sta- *.»
intervened in the action as party ment
Companies has added to its tistiCal Summary on "the industry
plaintiff. Argument will take place impressive list of available publi- from 1940 to date; collection,- comof securities to "minors have been early next year.
; cations and booklets.. These in- epilation land/distribution: of r key *
Your committee is awaiting the elude
simplified.
r
"Planning Your FutureWith < statistic^ seizes;; analysis Of closedPosition of Illinois Securities Supreme Court decision and urges Mutual Funds" ; (the third of. a: end.in vestment "company securfall members of the IBA to be alert seriCs of
booklets producedin ct>-. tiesquarteriyf and analysis of re¬
Administrator with Respect to Di¬
to the threat to both the industr
rectors and Officers of Investment
operation with a commercial or- .gipnal sales ox^mtrtual. f und sharejs
and the public pOsed by the sa
ganitation) ; "Investment Company; on a semi-annual basis to suppleCompanies Who Hold Similar Po¬
!J.
of equity securities without the Shares—An Aid to Bankers and * ment the aiintial collections th^t
sitions in Portfolio Companies—
to. which investment Trust" Officers"; -"Seven Reasons have been' made since 1954. r:. 1 r
A general letter has been received regulation
from the Secretary-of State.of Il¬ companies and the securities they for Investing in: Mutual
The year 1958 £aw the comple'
"The Story of. Investment. Funds ftion of a maj or Association
linois by those investment compa¬ issue are subject;
project,
and You" and "Investing Made "The Mutual
nies whose registrations have been
Fund Shareholder
nn
A
—
"
Jk
•
.1
A
T»
_
—:
J
w
Public Information and Education
in that State.
the letter states
that although renewals will be
granted to companies which have
interlocking directorates with re¬
spect to investment fund manage¬
ment, investment advisory man¬
agement on the the one hand and
companies represented in the in¬
vestment companies' portfolios on
the other, future renewals may be
up for renewal
In summary,
State Matters
Thursday, December 18,1958
on
the power to regulate "variable sions
investment companies.
Research? in Support of Public
annuities" companies nor the se¬ These presentations were part of Information Activities: To provide
a
series explaining the over-all more data about investment comcurities which they issue.
In October tlte Supreme Court investment business
to; the/invest- panies and
Continued from page 30
the Wharton School has Seen as¬
signed by the SEC to conduct the
fact-finding phase of the study.
WO understand that the SEC is
just about to circulate an exten¬
sive questionnaire, prepared by
the Wharton School, to all invest¬
ment companies. (By the time of
the convention, this may already
have been circulated).
...
Seminar
Easy." All bf these educational Survey—A Comprehensive Study*'
of Investment Banking: type booklets may be obtained which presents some 4,300 Statisti~
from the N.A.I.C. To: date' severalcal-items
in,23 oat^orie^ conceriihuridred /thousand : copies have frig the /financial'position of ttfe
Indicative of the growth in inter¬
est in investment companies is the
increasing, number of educational been made
subject' by in¬
Other Information-vestment
company officials. , In
1958, for the first time, the Chair¬
^
...
.....
discussions of the
man
of this Committee and other
sessions with all
,
V
\
Tbe_ acceptance of
the ifivest-
To assist: m .presertfcrtiori /of/the^eutVcdmlxapy4ndh§tfy bohlibue^:
investment
company /story, Vthri;
issymptomatic of. the gfrowihg
three-year classes N.AXC. has
been active M
nun£ :;ihteres£pn:lbe part of individuals
and institutions in equity 'investtorates continue to exist*
Newly Wharton School in Philadelphia. responsive to inquiries frbrh %tu-; ineriti/ as/part of their ovCrrall
"The Investment Company — Its dents, press and
publte. -'lt ' cpm
organized funds seeking registra¬
Role in the Securities Business"
in 1957, effective for taxable years tion must submit a commitment
was
presented to the first-year
beginning on or after Jan. I, 1958. or resolution that such interlock¬
class;
"Institutional
Investment
panids - do" use them:
In New York,
a
bill which ing directorates will not exist
Practices
the Investment Com¬ and other elements:. ■
would have provided for the taxa¬ within the company.
Your committee is of the opin¬ pany as an Investor", wast pre-' ties industry ;in/the Joint Cphlmi^ ^alsb rihcli^e ?the ritttpe^aht/heces1- ^
tion of capital gain distributions
sented to the second-year class; Jtee on Education in tlte^SecuritieS
^ary/fadtb^^txf ^avihgs aCcbuhts, :
at capital gain rates passed the ion that this letter of the Secre¬
gain rates. This law conforms the
taxation Of capital gain distribu¬
tions in Georgia to Federal law. A
similar law was enacted in Hawaii
at the annual IBA Semiriar at the
denied if such interlocking direc¬
a
U Xs constantly
ber of other areas.
-
^
.
.
—
Legislature, but was vetoed by
the Governor.
and
tary of State places unjustified
operating restrictions on regulated
investment companies, which, in
many cases, will be detrimental
to the shareholders of investment
companies which sell securities in
Illinois. It is urged by your com¬
mittee that every effort be made
Gifts of Securities to Minors—
During the past year "gifts to
minors* legislation has been
adopted in Alabama, Kentucky,
Louisiana, M assachuaetteand Mis¬
sissippi This brings, to 46 the
to remove this unwarranted
number of jurisdictions in which
hibition.
the procedures for making gifts
&>nntfa
cfl
GROUP SECURITIES, INC
Incorporated 1933
The
IBA
educational aids
ties^
Companies
assist major/newspapers /to; educate the /American:
public
magazines to telLtheih read- : bohcerriin| lirv:estmeht hi::g^
ers
about inyestme^'Veilv as ^ investiheht
Cqmpahy
A major education effort in; this • shares, A;proper presehtati6n is,
and
since its release to
lion
over 2Vz mil¬
people in movie theaters
the country. The film is
across
available
to
or
IBA
members
rental basis.
•
indus¬
basis.
securities
,
We would note that several
can
ma-
about investment companies—this
group
includes
the
New
York
"Herald Tribune," the New York
"World-Telegram rind fSuri/'/fhe
"Mirror-News," and
recently,
the
New
York
and
on
without
the
Federal
a
Los Angeles
.
most
Did It Ourselves" continues to be
and popular.
the
A Diversified Investment
public investing in equity
se¬
curities.
in Listed Companies
Your
committee
has
of
To date
a
total audience
25 million has
television and in
seen
it
on
church, fraternal,
adult education and other groups.
It is available to IBA members at
followed cost.
Publications: The Na-
Association
of
Securities
like
to bring to your
Galled "What You Must
together
brings
in
GROWTH FUND
~
There is also
a
film strip called
'%/
INVESTMENT COMPANIES
COMMITTEE
attention.
aboiit standards for prepar¬
data
-•
.
.
THE FULLY
submitted,
^
-
Know;..;" Charles F. Eaton, Jr., Chairman
Eaten & Howard, Incorporated,
one
place
opments in various jurisdictions,
particularly Alabama, Massachu¬
setts, New Jersey, Virginia, West
Virginia and the District of Colum¬
bia.
Of particular interest have
been» recent developments in the
THE CAPITAL
busiiiie^s
mu^t be a byword for us all: ,•:,
.
Dealers has recently published an
educational booklet that I would
it
The IBA has been n
integrity of the securities
N.A.S.D.
tional
industry by. the. Amen-..
public.
most important institution in the
past and will contiriue to be of
great importance in the future,
We look forward with mutual con?fidence to continuing education
"and enlightenment of; those who
become owners of Ariierican in«dustry. Public confidence in thp
BristonV"», -i''c'•
"Investing With A" Purpose,'? nar¬ ing investment company sales lit¬ Edward S. Amazeen /
rated by John Cameron Swayze, erature, including the text of the
Coffin & Burr/incorporated,
which explains - investment com¬ Securities and Exchange Commis¬
Boston
panies by means of a narration in sion's Statement of Policy,: perti¬
conjunction with 48 original color nent extracts from the NASD Herbert R. Anderson
Distributors Group
Manual, texts of various SEC Rules
cartoons.
; r
District of Columbia.
and interpretations, statistical exincorporated, New York
* Television and Radio: The PubIn May, the Court of Appeals lie Information Committee of the :
i^f ^ those familiar or unfamiliar Ourtls H. Bingham
a
^ J
for the District of Columbia af¬ National
Association
of
Invest- For
Binghanv Walter & Hurry, Inci,
firmed the decision of the District ment:
Los Angeles
Companies, in cooperation with the investment company bus!
t
Court in SEC vs. VAL1C, which with several IBA
regional groups infess, this booklet can be most
Robert E. Clark
held that the SEC did not have presented several panel discusCalvin Bullock, Ltd., New York
helpful.
closely "variable annuities" devel¬
★
over
-
area is the ahriual /'FressvJCit oii:*as/ blif ex^eriende has:
taught uS, /
Investment Companies*! as well as the most; effe:ctive
way to secure
factual news releases oil a regular " arid maintain
acceptance of the
story of investment companies in jor newspapers now have regular
financial planning, has been shown weekly columns devoted to news
State securities regulations which
have proved essential to protect
STOCK FUND
"
Investment
of
individ^
vided to
•
An
earlier 16mm black
try, has continually opposed the white sound motion picture, "We "Times."
THE COMMON
■
.
Visual Aids: The National Asso¬
ciation
Si Savings Bonds .and
Newspapers: Stories "have been ual securities held direbtly. * ~
written and research:material pro- J 1 m^
i^importanCthk£"A^
available
has produced two films that have
received wide acceptance.
"The
along with all other purchase
elements of the securities
\^ v /
are now
to IBA members.
sale of so-called "variable annui¬
-
;
Hope That Jack Built," a 16mm
sound color cartoon telling the
report on "variable annuities"
developments Will no doubt be
presented by the IBA State Legis¬
lation Committee. I would like,
however, to take this opportunity
briefly to supplement that report.
Business.
forum on investment
held for all three
was
Educational Aids: A. number of
pro¬
A
a
open
classes.
"Variable Annuities"
£TAe
an
companies
.
.
.
.
...
*es
ADMINISTERED FUND
A Balanced Fund
★
THE INSTITUTIONAL
M
BOND FUND
A
High-Grade Bond Fund
Fundamental Investors, Inc.
DEi
THE GENERAL
BOND FUND
Diversified Investment Fund, bit
A Good-Grade
Diversified Bond Fund
i investing in diversified
securities selected
tor
and
Diversified Growth Stock Fund, Inc.
v
-
their
as
high
WftftENT INCOME
INCOME
ras
APPRECIATION
involved.:
DbMMois Graf, Imported
61 WALL STREET, NEW YORK 5,
N. Y.
Prospectuses
available
these mutual funds
local investment
on
through
firms*
or:
HUGH W. LONG AND COMPANY
INCORPORATED
ElizabOtffl
3*
NOW
Jersey
Request
on
Request
Nationally rfj&frib«te<l throygh investtrient rieolers by
Delaware
3 PENN CENTER PLAZA
m
E
i§''
Prospecto*
these and
16 Industry Classes write to
1
possib'e. commensurate I
with the risk
possibilities.
procpodus o"
For Prospectus on
f°r
Distrib
•
PHILADELPHIA 2, PA.
Volume
188
Number 5804
.
.
.
The Commercial and Financial Chronicle
(2581)
Howard B. Dean
Continued
from
Harris, Upham & Co., New York
page
31
competition determines actual, new economics of
the jet age, fan
rather than theoretically allow¬
order to prevent a return to
the.
able,
earnings,
schedules,
re- excess service and
Henry Earle
First of
Michigan Corporation,
Detroit
'
~
Report of IB A Aviation
r
equipment, and promotional out¬ petition
lays.
While the Civil Aeronautics
Act sought to alleviate cutthroat
Paul A. Just
Television Shares Management
competition
Corporation, Chicago
,
Distributors, Inc., Boston
recent
grudging
.
..
,
need,
the utilized
to
by
giving
the
nautics Act sought to halt/ ; :
;
,
(3)
CAB
this power in recent
years
intensify competition
lines
maximum
often at
policy
freedom
recognition
.
fur a
i^rmanent 15% rate increase,
governmental management
war years the Board has granted
non-scheduled operators entry to
the profitable
upon the management of,the air
increases,
has m^CAB still delays its decision,
carriers."
Yet
it has been the
adequate Furthermore the Board m 1957
high-density routes CAB's
practice to encroach upon
airline earning power or invest- flatly rejected the airlmespetbwithout
the
countervailing re- and
ultimately to dominate airline
ment status. The CAB historically t*Gn *Gr an e™er£Gncy 6% fare
quirement imposed on scheduled
temporary
V
failed
Philadelphia
Robert L. Osgood
.
of financial
the
subject to the public welfare. A*
oral .Passenger Fare investigation
behest of the carriers, to the
the CAB itself acknowledged in.
until May 1950. After 31 months point that airline earnings are
of testimony, m which the airlines jeopardized on even the most fa- 1939: "There is no intent ex¬
pressed in the Act . y to supeipof have presented the strongest case vored
high-density routes. In postimpose
economic need in the form of two
Company,
.«
CAB did not initiate its first Gen-
(l) Rates: The' GAB'S narrow
utility rate philosophy, prolonged
delays in rate awards, and only
Massachusetts Life Fund
Walter L. Morgan
The Wellington
..
the; original dications
developmental intent of the Act.
Philip F. McLellan
•
,
practice has nullified
cutthroat com¬
Civil Aero¬
which
Management Freedom and
CAB Policy: It was the clear in¬
exclusive power over
entry and tent of
Congress in the Civil
route certification, the Board has
Aeronautics Act to grant the air¬
-
Hugh W. Long
Hugh W. Long and Company,
Incorporated, Elizabeth
85
-
Vance, Sanders & Company,
rate
•
to ' re-establish
.
_
managerial
practices, inhibiting
development and threatening
to substitute
political decree, for
The curThe Parker Corporation, Boston
economic freedom.
rent general fare level will: pro-, Board has sought to equalize
opHarry L Prankard, 2nd
Early in its history the CAB
costs which the Board chose to Y1Ge sufficient revenue not only
portunity for the weaker trunkt
began to disallow after the fact
Lord, Abbett & Co., New York
recognize. ; This utility analogy is *or operating expenses but also iines
through a series of over- an
Albert C. Purklss
ever-brcadening list of actual
completely inapplicable in view fGr the capital costs of the car/
dapping certifications on the more
Boston
; ■
•'
■
.
has
a
William A. Parker
based its
fixed
rate
maximum
decisions upon
allowable re-
increase.
_
concurred,
It. thereby iimplicitly
witn the CAB
^Staffs
airlines
of
minimum
service
and
their
acceptance of nonprofitable lowdensity routes.
Since 1955 the
turn based upon those portions
Of
original, straight-line, depreciated
amazing statement that:
of the intense
expenditures and cash invest¬
riers.
'
profitable routes,
ments undertaken
by the airlines
The CAB only grudgingly aban- Competition
in the 50 heaviest in
good faith. Initially disallow¬
doped this untenable position by traveled domestic markets, as a
ance was
applied to airmail and
granting two temporary fare in- result, has increased 50% since
subsidy' cases and then extended
creases in 1958, pending decision
1955, with the average number of to
passenger fare investigations.
on
General Passenger Fare competing carriers per market Typical
disallowance of expendi¬
pase- The average 6.6% increase raised from 2.0 to 3.0. Now 12 of
tures, each made with sound busi¬
in fares granted in February and the most lucrative markets have ness intent, occurred in such
broad
average 3% increase in October five or more competitive services, and diverse
categories as- main¬
resulting from a change in dis- while only one had comparable tenance
costs,
flying, expense
90111}!?!, rePrGsent a piecemeal competition before 1955.
■
;
ground
and. administrative
ex¬
too-hUle-and-too-late approach.
The
individual
airline, faced pense, sales
expense',- legal -fees,
Thus, despite a 2% increase in with CAB-decreed ever-expand- officer's
salaries, and accelerated
revenue passenger miles flown ing competition, has been forced depreciation on
aircraft. .V;
/
during first nine months 1958, to a series of uneconomic policies
We urge the CAB to limit
ifetrunkline earnings declined from —overexpansion of scheduling,
allowance of
legitimately-incuvred
$34.8 to $29.3 million, with three capacity, advertising—just to hold airline
.
*
Walston & Co., Inc., New York
Herman J.
McDonald & Company,
-
competition, volatile
earnings, .high capital turnover,
rising reproduction costs, and high
Y'-
Sheedy
'
•
obsolescence factor within the in-
Cleveland;
dustry.
Henry J. Simonson, Jr.
'.
Corporation, New York
Distributors, Inc
at close to 1938 levels for 20 years,
Boston
During this
Carlton P. Wilson
prices
,
Robert W. Baird
& Co.,,
.
The airlines'
'
I
meet
^
Dempsey-Tegeler
with
Smith has become connected with
Dempsey-Tegeler & Co., 210 West
-
Street.
He
was
previ¬
ously with J. Logan & Co.
eariv
.
leaders
1954 of
as
nancial
"
figures
Opens Inv. Office
warning
Subsequent
hornp
out
to
1957
to
151419
from
million
declined 50%
to $27
million'
their
oner-
$768
net
in-
from $54 milDuHng these
SSiSS
?eton
from
investment
on
14
5%
to
securities business from offices at
1812 Hammond-Street.
.
JJ*
deficits, its share of
™a\or®
declined
their
profit
£om7% t^2%.wfth
increasingly-frac-,
an
expenses to those
tional instances where
excep¬
fraud, fla¬
recom- tionalized market.
The
results
grant waste or
extravagance,. *r
mended tli&t almbst two-thirds of have shown up, both in the indusmismanagement are clearly dem¬
The
increases +be try's earnings decline mentioned
over the above, and in declining domestic
eKm+inated m tw0 sta^es
^areadfust- next
While consolidated
1Q52
come
LOS ANGELES, Calif. — Bar¬
G. Reel is engagingT in a
as
Sl™ TSS
^Xost doubled to the
lten
bara
warned
impending tl-
made
hivp
opHoH
(Special to The Financial Chronicle)
an
crisis linless
million
,
and
costs
delavs
CAB
were
ANGELES, Calif. —B. B.
Seventh
bits fares 37%.
cost, just since
The
airlines,
mounting
Industry
(Special to The Financial Chronicle)
LOS
own
45%.
driven ^bv
— r'-«
With
46%,
rose
competition
pressing
against
a
rigid rate ceiling, have repeatedly
petitioned for rate relief, only to
Henry J. Zilka
Zilka, Smither & Co. Inc.,
,'U
fares
1947
Minneapolis
Portland
98%,
road
Harold H. Wylie
J. M. Dain &
Company, Inc.,
period consumer
first-class rail-
same
rose
-re¬
incorporated, Milwaukee
-
protests, the CAB placed a ceiling
upon general air passenger fares
Charles M. Werly
Putnam Fund
....
Based upon this narrow concept
and
despite recurrent industry
National Securities & Research
cost
•
yearS*
•
load factors from 64d% in 1956
* the area of rate determina- to 61 5% in 1957 to 58.3% in first
tion»
.
we
ur^e
that
the
CAB
hal£ 1958*
abandon narrow and inapplicable
The airline industry has atutility' Concepts which can not tempted in part to mitigate the
M™ the development intent of above problems and to utilize
the Act. These should bereplaced
an investment market, cost of
capital approach, encompassing
adequate return for the risks
a*d development needs of the
industry and an operating ratio
sufficiently conservative to acan
marginsfell
^
no
adjustment in outmoded rate over and volatile nature.
schedules, the
trunklines
esti(2)
Competition: The fallacy
New Schweickart Branch
mated they; would suffer an ag- of applying narrow utility con1 BROOKLYN, N. Y.—Schweick¬ gregate $8 million net loss in 1958 cepts to the airlines is nowhere
art & Co. has opened a branch and certain carriers would go into more clearly demonstrated than
default
on
financial in the area of airline competition,
office at 512 Eighty-sixth Street technical
! The
most
intense
intercarrier
under the management of Adolph obligations.
L. Bennett, Jr.
Despite these overwhelming inr
onstrated.
In
brief, intervention
by
the CAB in this area should
be restricted to the prevention
off
clear abuses to the public.
Both
the
Supreme
Court
apd
the Circuit Court of
Appeals have
decided
against
the
CAB
in
its
equipment more economically
most recent attempt to encroach
through mergers and exchange Of
stock and equipment. The CAB upon management freedom. The
has acted favorably on the most courts rightly refused to allow the
recent exchange proposal but does Board to extend unauthorized con¬
not appear to have defined any trol over
piston aircraft deprecialong-term merger policy to guide
Continued on page 66
^recommend
We
that the Presi-
dential appointee analyze,
as
one
porti0n of bis overall review, the
b,
f comnetition—including
Probtem ot competition
certification,
including
entry, route
structure, and merger—in light of the
J
Massachusetts Investors
Growth Stock Fund
Incorporated Investors
v
ESTABLISHED 1929
\
■
Massachnsetts I n vestors Trust
res
ury
1 rust
I >.
A mutual fund investing in a list of securities selected
for
FUND
possible long-term growth of capital and income.
Incorporated Income Fund
A mutual fund investing
in
a
list of securities
for current income.
Canada General Fund
Prospectus
LIMITED
A prospectus on
each fund is available
from
your
or
from investment dealers
A prospectus
relating to the shares of any of these separate
be obtained from authorized dealers or
investment funds may
VANCE, SANDERS & COMPANY
111
YORK
Broadway
PARKER CORPORATION
NEW YORK
SAN FRANCISCO
16 Vista Ave.
1105 Russ Bldg.
CHICAGO
LOS ANGELES
453 S. Spring St.
i
FUND RESEARCH AND
120 S. La Salle St.
STREET
BOSTON
CHICAGO
lio
from:
-
Berkeley St., Boston, Massachusetts
LYNCHBURG, VA.
.
6i
200
61 Broadway
DEVONSHIRE
'
NEW
THE
or
upon request
investment denier
South LaSalle Street
LOS
zio
ANGELES
West Seventh Street
HUNTINGTON WOODS, MICH.
26058 Wyoming
Road
DALLAS
MANAGEMENT, INC.
Mercantile Securities Bldg.
ROCKY RIVER, OHIO
67
WALL STREET
54 Oak Road
NEW YORK 5, N. Y.
{
.
The Commercial and Financial Chronicle
(2582)
66
A.
Continued jrom page 65
Jet
Re-Equipment Financing
B.
The
Used Piston Aircraft Market
The
intensity of industry com¬
petition has forced
each major
carrier to finance
Report of IBA Aviation
next
in the form
purposes.
The airlines fought and won
of their entire
tive in
the
President
Eisenhower
signified
international
and
500-600
of
magnitude, the $2.6
billion outlay is more than three
ment
bejused in,competition Jong before
the
,
,
Problems
Financial
will
freedom and
flexibility within the framework
of the (Civil Aeronautics Act.
The
management
financial
airlines
are
the
of
of
problems
in part the result
unfavorable
regulation
by
Report
"20%
the
of
carriers
Industry
Transport
Air
reorient its policies to allow maxi¬
mum
ington
in
w
now
will
aircraft
flatly
states
domestic
cannot
that
trunkline
finance,
now
to
the extent that their current pro¬
the
grams
of
credit
the
require,
normal
under
financial standards" and
or
that another 8%
of
domestic
the
the
aircraft
extent that
can
serve
nomic purpose
mend
that
United
States
agencies
,
of 4he Relationship -•/' :
manufacturing industryi and , our, government,
facilities
through the Defense Department,
are interdependent partners in the
crucial struggle this nation
has
ever faced—the
struggle fpr
physical survival against history's
most powerful military aggressor.
With over 85% .'of.jsales directed
and
Issue
This policy, has forced one
Certain
rapid changes in basic prbdr
uct mix and production techniques
in industry history.
A brief ac¬
Age
to
analysis.
Most
jets will result
Some airlines
industry overcapacity. They
point out that the likely elimina¬
but a small percent of,
present piston capacity on major
competitive routes plus the dra¬
matic time, convenience, and lux¬
ury benefits of jet travel, should
tion of all
technical default
rowings.
present
on
in
many
of
instances
imum
profitable
tential
large
BULLOCK FUND
prevent
borrowing in the ab¬
of additional equity invest¬
sence
CANADIAN FUND
new
Clearly
the
solvency
of Amer¬
NATION-WIDE SECURITIES
public's
benefits
of
receipt
jet
grant
of
the
aviation,
many
of
to
jet
travel,
can
desired
in
the
proportion of
profitable fixed-price /con¬
tracts.
In contrast, military mis¬
sile procurement and development
expenditures have risen steadily,
from $1.1 billion in fiscal 1954 to
more
adequate
return
Missile
climb,.
the
rates
the
cost of
capital
necessary
for
The
the
air
flying
transport Industry <and
public both stand to
greatly from the Federal
Aviation Act of 1958.
Bullock
Investment
Ltd.
Possibilities in
Established 1894
ELECTRONICS
Boston
Los Angeles
Chicago
Philadelphia
Denver
Interest Yen?
WHY NOT
St. Louis
New York
INVESTIGATE
San Francisco
London
—
The Act at
dustry for research and develop¬
are mounting steadily, from
simplifies government super¬
vision of the airline industry and
consolidates in a single agency re¬
sponsibility for civil-military co¬
operation in allocation of air space
and air
TELEVISION-
ELECTRONICS
A Mutual
Invest¬
Fund
safety. Both Congress and
subordinate
from the-B-58
rible
and
needless
area.
team.
of
life
involved in two mid-air collisions
uncoordinated
a pro¬
1959.
The
itself
fo
a
systems
Most late
military aircraft,
the Dyna^Soar,
and virtually all military rocket
programs, are on a systems team
basis. The position of "the exclu¬
The ter¬
waste
in
complexity and altered nature of
the new weapons systems has re¬
quired -therindividual company to
military
to
and civilian aircraft in 1958 must
sive airframe manufacturer with¬
be
in the team has declined as control
brought .to
will
be
a
halt. Such dangers
compounded
in
the
mew
mechanisms, propellants, and elec¬
tronics
absorb increasing propor¬
tions of missile expenditures. The
aircraft manufacturers have been
confident the FAA and
Congress will expedite the estab¬ required to make large additional
are
whose
primarily
v.l"
invested for possi¬
*,
:
,
-J
Mutual Investment Funds
ble Jo tjg-term
AMERICAN: SHAKES
billion
$2.4
denced in this vital
We
ment
jected
jet: age by speed, number oi air¬
craft, and tightness of scheduling.
FUND, INC.
assets are
ment
$1.5 billion in fiscal 1955-to
the Administration deserve praise
for the leadership recently evi¬
between
Montreal
'
:
profitable
incentive-price
prime production contracts has
declined, to be replaced by less
profitable fixed-fee research and
development contracts. And-gov¬
ernment expenditures m the In¬
once
Calvin
7
more
Aviation Act
benefit
re-equipment.
*r
-
The impact on the industry has
been
great.
The
proportion
of
Airlines and the Federal
cover
both normal operating profits and
from
.in 1960.
depend
to
estimated
$3.4 billion in 1959.
outlays will continue to
29%. of
military
aviation expenditures now to 50%
an
a
the CAB allowing the indus¬
an
of military aircraft pro¬
have resulted in consider¬
hardships as well as a
able
of traffic growth.
The
try
military
reduction
IV
upon
decline in
grams
benefits
believe
we
achieve
a
lations
travel.
passenger
in
projected $7.0 billion in 1959. The
resulting stretchouts and cancel¬
regulatory climate, and
dramatic
jrowth-of capi¬
j
tal and income in
INC.
•
companies actively
engaged in the Elec¬
#
tronics field.
Bond Series
Balanced Series
1
j
i
j
•i
Get the
a
mutual investment
com-
Prospectus
,
pany
which supervises
sified
portfolio
of
a
on
request
wow
American
of
Jong term,GROWTH
capital and
current
INCOME.
135 South Ra Salle Street
Income Series
:
j
"I
Stock Series
1
\
Television Shares
i
Management Corp.
135 S. LaSalle
*
•
•
SELECTED
Investments Company
Preferred Slock Series j
%om your invest¬
ment dealer or
diver¬
securities .selected {for »tbe
pos¬
sibility
•
Booklet-Prospectus of this
Mutual Fund
...
115
St, Chicago 3, IB.
Dividend Series
• Growth
Stocks Series
,
j
Broadway, New York 6, N.Y.
Chicago 3, HI.
Information Folder and
Addrem.
CBy-State.
an
a peak
billion in fiscal 1954 tola
of $8.3
a
air
:,
been
aircraft procurement, from
popu¬
freedom,
our
7
plane wings, from 137 to
by the end of fiscal 1959.
105
po¬
with
adult
management
airlines
The
to
7
fundamental has
reflected
airline
there,
the
unexposed
Given
the
traffic.
certainly
percent
lation
from
ica's air transportation system and
the
is
favorable
ment.
DIVIDEND SHARES
to
.
Force
now
the high levels
And
debt
CAB
the
impact
The programmed reduction in Air
in management maximum
policy
present bor¬ flexibility in generating the max¬
are
and
accelerating shift from the indus¬
try's former product, aircraft, to
a basically new product, missiles.
in
urge
dustry.
nature
this change is essential
of
(4) The fOherington'Report: A CAB, and in part the inherent industry is in a "tenuous" position
to obtain additional financing.
result in substantial improvement
challenging analysis of the air
consequence of a highly competi¬
Most airlines will find both cost in load factors
by 1962.
transport industry was completed
this past iluneiby Dr. Paul Chering- tive industry engaged in massive and dilution from equity financing
Without prejudging the varying
ton, m Professor of Business Ad¬ reinvestment during a lull in the very high until earnings reverse assumptions relating to passenger
their downward trend and reattain
ministration at Harvard Univer¬ growth cycle.
promotion and jet capacity, we
levels justifying risks of the in¬
1
the
of
count
industry officials dis¬
agree completely with the conclu¬
sion of the Cherington Report that
,
conversion
of- the
most
of Industry Capacity -in
the Jet
government, 'the,aircraft
is necessarily dependent
Defense Department policy.
upon
credits for the acquisition
of these aircraft.
C.
the
to
com¬
under-* industry
in
developed countries by arranging
proper
aircraft
most
lending
transportation and
munication
*
Nature
The
improve¬
the
-
-
eco¬
Bank
reserved
Industry and the Defense
Department
-
.
A.
we recom¬
foreign
^
promote
of
useful
a
World
of
The Aircraft Manufacturing
used piston
abroad,
the
V
-
be
uled
operators, smaller foreign
airlines, and corporate users.
Y
To
' non-emer¬
air space for commercial jets.
supply will great¬
ly exceed the foreseeable demand,
derived mainly from non-sched¬
agement control over depreciation
.airlines' problem by forwarding times the book
was .a wital business function, ^de¬
equity, two times
termining rates of obsolescence, it to Congress and the CAB for the total capitalization,.. and 57
rates of re-equipment, levels of "such action as they may deem times the net income of the car¬
cash flow, and over-all business appropriate within the framework riers for 1957.
of existing authority."
CAB rate and depreciation pol¬
strategy. Besides, Congress had
While we may not agree with
icies place in jeopardy the $1.2
expressly -authorized one regula¬
all aspects
of his analysis, Dr. billion which the airlines
tory agency after another to con¬
project
trol depreciation practices but had Cherington did deal in some detail they might reasonably raise from
with many of the issues we have
internal sources. Of the $1.4 bil¬
specifically deleted this authority
in the Civil Aeronautics Act. The presented in our own Reports. He lion external capital
requirements,
airlines laced some
reasonfor.this deletion was spelled warned that the
$510 million remained uh->
out by one-of fhe Senators in dis- losses, violation of liquidity pro¬ financed as of early November.
visions in loan agreements, and
c.ussiomof the-originalbill: ''While
The unfavorable regulatory cliit is ^possible do forecast the rate inability to finance re-equipment mate of the CAB as well as the
programs,
and argued that the unfavorable financial returns of
at which a railroad car will de¬
carriers "must return, if possible,
the carriers have combined to re¬
preciate, it is ^utterly impossible
to do.soin the-case of aircraft, for to a satisfactory level of earnings," duce
most
airlines'
investment
which now depends directly upon
aircraft. are developing .so rapidly
status at their moment of greatest
CAB policy.
that tthey ,are obsolete and cannot
investment need. Thus the Cher¬
Welhapedhtittihe CAB
piston
and
allocation
separate
a
'
military a':rcraft, including
-
trunk
indication
commercial
■
gency
Assistant for carriers between now and 1962 for placed on the domestic market in
Quesada showed initia¬ jet and
propjet equipment and the next five years. Most authori¬
requesting the Report and facilities is
$2.6 billion.
As an. ties believe this
Administration recognition of the
they, are *vorn*out."&
all
obsolescence
mass
of equipment for complete
ground and instrument control Qf
major problem
a
of
lishment of procedures and acqui¬
Aviation
in vthe knowledge that man¬
case
years
Thursday, December 18, <1958
.
the. sition
within
face
piston fleet and the
danger of a used airplane market
petitive oblivion. The direct capi¬ glut and resulting depressed resale
tal expenditure required of the prices. It has been estimated that
domestic
'<
few
Presidential
rate-making sity.
policy for non
jet re-equip¬
program, regardless of its
internal economics, or face com¬
Securities Committee
tion
a
ment
airlines
..
Prospectus
on
Request
NATIONAL SECURITIES & RESEARCH CORPORATION
Established 1930
;
120
Broadway, New York 5, N. Y.
j
Volume
Number 5804
188
* The Commercial and Financial Chronicle
.
.
(2583)
investments in
missile,elec-
new
testing
and
tromes,
facilities
at
mass
obsolescence of their
high.bay airframe facilities...,
from the government-industry re-
ohl
B-
Consequences of the .v.
Relationship
^
The
..
financial
-
::
/■'/: c
;
-
_
consequences
this
major alteration in trie face
transition -to
aircraft
rommercial
production,
impact
of the
Relation*hin
Kelationstiip
<1)
Advantages of IncentiveType Contracts: Due to expanded
research
of
the
^
•
confiscation fappears even
less justifiable in view of the ma-
jor investigation of aircraft* indusdifficulty of determin- try earnings
by the Hebert Con-
ing Costs of
areas.
sword
^n^ development pro-
grams and
certain
projects
jet May thttLlt' necessary to
plus-fixed-tec contracts
not be
favorable in The lrmneniate future,
may
per com-
in the period 19511854, with the industry,as a whole
penalized over $181 million. dur¬
ing these four years. This broad¬
papy per year
F:«««ei«l
wiin
has .averaged $5 million
~
lationship.
Under this
cost-
use
in
in. gressional Committee in 1956 and
many
type of contract-
rte^rusiSnr'^ehas'b™
showing
that,
the average, the
on
profits allowed were .excessive."
Faced with this constant threat of
It is likely that total aifcraft in- irigr the aircraft manufacturer is
retroactive loss ?of earnings, the
fllustry mmi-gins, will decline- in normatiy reimbursed for a portion aircraft
industry is understand19o8 and will mot fully recover In of costs incurred, plus a fee fixed
obly
"
V',
:
Tlie
,.,
,
V;
.
accelerating
^am^:wi|V.pot
future;
the
absorb
volume in
-
S1
missile
loss
.
.
pro-
of
sales
military aircraft.
hesitant
to
invest-
expand
•" a<H ™ce irrespective of subse- ment in military
quent
performance.
Thus
cost-
research and faeilities, when this is essential for
^^^dvan- ike
tage ofteliminating the traditional
cost
reduction for
b-i
leuucnuii tui
VnK'i/iVi
Prcrfit -•muVimivd+inn
most rapid weapons develop-
ment.
Con- incentive r of
for this
volatile type of contracting business. The danger of over-
capitalization in absence of
pehsating
com-
earnings stability
is public interest.
■
i
•
•
,
.
11 nc\n
fn^z^ion
gotiation.
Thus -despite
Thus, despite
40%
a
granted-to the
increase in aggregate annual-sales
aggregate annual *sales
*
for
the
four years
12 major airframe
lll<XIUL
rtllAJLtuirc
manufacturers
suffered
9% idecUne in annual
a
net income
age
^r
18%
decline in
aarntags!
share
decline in average
per
aver-
and
4%
ally Slated to decline $400 million
fiscal
1959.
Expenditures
cTcJft
estimated
in
$11.2
a
tiated
missile-air-
ect
the
from
soon as
price
coL
with
rea-
(»%Tsarfngs
I
™n^th
tor
nego-
of the wo\-
be determined
can
is
an
in fiscal
1959: The
billion
to $10:5 billion in
as
target
process.
/®\
-
u
*/;(3).
*
pay««ents: Pro-
r
all incentive contracts
tract
or
any coninto iafter formal
entered
advertising
or
tiation. '
competitive nego¬
-4
■
;•
Without presuming to pass Judg¬
The 38%
payout of ment as to
specific wording, me
earnings for dividends during the
pcvetthelees wholeheartedly
period was well beneath the na- narf a.® nrin«mj«c a#
dividends.
of
r>
V
H*) ^Exempt from renegotiation
share cash
,
^^ve^ype.eontracts. Undergone
'method
government
will decline
areas
il958
Total
systems manager
and 'the contractors.
1954-1957, the
—
in
of Inroad func-
through bankruptcy or reorgani- tional performance unless another
zation
following World War 1. type is proven more efficient;
Favorable equity
financing is
(3) Provide statutory .support
whiclimit
,
J
^ >
,
(2) Require specifications to be
industry went written in terms
We therefore urge that Congress
fn' nnnnlop
-iinnroceirMi ' oU
trary To" popular impression, ;alrenegptiatiw to :those iso- tional manufacturing .average,
most 7l% of the projected increase bur
•enterprise system upon
is based.
,
lated .noncompetitive
instances
-—
.in "the <1959 budget stems from
Jtn the area of progress payArmed
Services: Procurement where it is
impossible to establish ments, we urge that the'Defense
non-defense .spending.. Procure- Regulations also
provide Vfor )in- Costs and prices through the
regu- Department s
as an integral portion
i.
(1) Require the use of ineentive-type contracts unless another
type is specifically proven indhe
demonstrated by the fact that all
17 companies in the
67
contract'-price
allow
the
_
Weurgeihe
stall Bili, We urge ihi
f|
.
f
. .
^ ia*iwyu>le conunlii jlloii'.oi
this
legislation
determination, essential
aircraft
manufacturers
auow ime aircran a,
gressive reduction by the govern- adequate earaiings to
cover
most caref.i.,n.itf i—r
»—
by
both
security
and
Congress
to
the
the
to
the-in-
as
national
Economic
s^ren^k of the aircraft liMflmlT'j.
prG7r
*» "force a :re- required to j«n»nce government r> ' Hesoectftdto Mihmlfted.
Respectfully wibmittcd,
caP,tallzatl0n o£ period of declin- contracting. The aearnings allowed
the aircraft in- must include
AVIATION
dustry during a
ment
of payment
on
contracts in
creased cost of permanent capital
targeted rosts nip to
stability
and
.industry's annual aftertax return predetermined limit and
100% of
COMMTPTEB
ing earnings and revenues. Prior growth factor sufficient toprovide
sales, wbich has fallen steadr any further cost reductions.
In
u..uuress
uavmerirS
1954, progress payments OI1 an „„
on
operating ratio and .rate -of Donald N. McDonnell, Chairman
fly from 3*9% in 19o5 to 2.6% in xjvent of a cost overrun tHe con- to
9
^
j
'r i ret mi irtpr^ i QKft
m-iv - eh rink
m
overrun, tne cun Work completed were generally at return over fluctuating conditions
first- quarter
iya»,
may. snnntc,-tractor
-Blyth & Co., inc., New Ypfrk
normally shares in added
of
rot,te
inrurrpH
TTndpr adeauj
1
'pupn"further. Lower revenues will
■even further. Lowpr revenues
ifarp
^tace
mmmtino
fixed
er.sts
inmounting
nxea
costs,
in
creased
depreciation from
new
If ^o^rof^s
jets, and
increased
proportion
an
Of
rcost-plus-fixed-fee
Deliveries
contracts.
and
backlog of com¬
aircraft
are
in
u;iii
L oimnci
will be almost
negligible in 1959. As previously
indicated, the airlines may prove
mercial
.
piston
iVn un/
steep .decline and
j
**"
01
j
n
vOSiS
incurred,
costs^W-loaTlmit and""oavs'106% f ? - ?l coslsJ
iu
!
budgetary and
Qf further costs.
This
noeto
,
i:™ii
r
innnr
m
motivates
management to
save on
thP
,„rPo
"&u.fsl
the largest
The
allows profits commensurate with
initiative and performance.
Defense
pres-
Denartment
was
forced
in-
to
its
financing of government
contracting without expressreeog-
lift view of the clear
advantage
nition in the contract
price for the
interest cost of financing.
The government was *in
"
..
c
amend
y' we urge tnat conV)ei>s amena
the Armed
aaequ<
adequate to attract long-term investment funds.
^
ueiensJ ^eparimeni D
„
industry
crease
kot/i to government and to mdust
debt-limit
-
.
under
,
^
Sylvan XI. Coleman
E. F. Hutton &
Company,
,
New York
Desirability of the Saltonstall
Richard W. Courts
—
Senate Bill *4294, sponsored by
Courts & Co., Atlanta
J
.
Senator Saltonstall, Ranking Mi- Walter M. Giblin
- <
"ont.y Member of the Armed
Hornblower & Weeks,
New York
Services Committee, represents a
sound and carefully-reasoned at- William Barclay Harding
tempt^to solve many of^the probSmith, Barney & Co., New
lems listed above. The Bill is based Herman H. Kahn
_
effect
York
forcing the industry to obtain adAct to require the use
of incen- ditional permanent capitalization uPon over *> months of preparaLehman Brothers New York
FhilHon^for'new'SeauinmenT iive~tyPe contracts except in those on the one hand, while limiting tion and reflects our own warn- Richard W. Millar
On a cash ba«is
the aircraft in 1:,instances where the public inter- industry earnings growth and sta- ings
and those of many, many
William R. Staats &
Co.,
has not 'yet recouped its "
project bility to finance the capitalization others as to the inadequacies 0f
Los Angeles
commercial jet ;and propjet ae-j
e 0 erwise.
1954-1957 the
Defetise Department procurement James P. Mitchell
;volopment oullays:. At worst if - <2)
Renegotiation: Under the "*4-1857, .the 13
,.^or wrtomae
K
.
The Chase Manhattan
Bank,
may face an unreimbursed investRenegotiation Act, earnings de- raanu^ac'urers increased long- P
•
New York
ment in this program of over $1 rived from government
contracting term debt $119 million only to be
In bnet, the Saltonstall Bill
John Raiss
billion, almost equivalent to the have been subject to retroactive faced at the end of the period with would amend the Armed Services
Burnham and Company,
total 1957 capitalization of the :12 review and downward
adjustment a decline of
$62 million in cash Procurement Act of 1947 to:
New York
major airframe manufacturers.
by the Renegotiation Board ever
liquidity. As a result of additional
An
view -of the -.magnitude
of since 1941 •. The original intent of
changes involved, we again urge Congress, -in -which we heartily borrowing in 1958, industry funded
Secretary ?of Defense McElroy and concur, was to encourage effi- debt has increased to a high level
a j permanent
industry committee .^iGncy^-and
eliminate
excessive
UNDERWRITERS
„,
—
c
_
...
a.
Services
dust?y
Procurement
^
,
^ejmt'cre of the
if malor-airframe
CLAYTON
to
negotiate
acceptable
tation
sary^
y
to
to
-
financial
to
series of
a
proposals,
.Gongress
allow
and
,
the
mutually profits.
for -presen-
where
industry, the
managerial
adjust to this
neces-
major
leeway
transition
period.
-
arbitrarily administered ' by
the Board, the renegotiation process
has
not \ filled / ; this V.
Rather it has served to penalize
"
McElroy.
We do hope such meetings will be on a sustained basis
efficiency and reduce jthe incensave tax dollars.
.Industry
and
will result in concrete action
rather than
this
end,
mere
we
staff studies.
present
'financial viewpoint
of 'the
many
on
below
but
a
To
our
few
problems stemming
Board
MEMBERS
-PRIMARY'TRADING
MIDWEST STOCK EXCHANGE
duced
been
as
re-
well.
used,
stances, but
reduce
A BALANCED
FUND
MARKETS
79
with
and, in several cases, basic
contracted earnings have been
Renegotiation has
not in isolated
in¬
as
a
broadsword
to
the earnings of all com¬
panies in the industry as a whole.
The reduction in pre-tax income
DEALERS
CORPORATION
v
tive to
initial
sound
DISTRIBUTORS
•
irtten^:^
step in this di-" incentive earnings resulting from
section
was
taken
last January cost reduction and management
with .a. meeting of; the industry efficiency have in many cases been
J-jCommittee of 12" with Secretary retroactively eliminated *by the
A
SECURITIES
> ^ As
diversified
holdings of bonds,
ferred and
selected
common
for
pre¬
stocks
income
and
MILK
STREET,
BOSTON
9,
HUbbard
Direct
Telephone
to
New
2-6065
•and to
Teletype BS-30
Grace
Canadian Securities Inc.,
Portland
New York
growth possibilities.
The
Qeorge
PUTNAM FUND
fund
.
;
of "Boston
investing
marily in
common
pri¬
"A BALANCED FUND'
stocks
seeking possible longterm
growth
of
.
WfE
capital
PUTNAM GROWTH
and income.
W:
FUND
Write your investment dealer
or
Philadelphia S, Pa. for the
prospectus of
your
The Wellington
Emphasizing possible long-teim Capital Growth
choice.
Company
Philadelphia 3, Pa.
York
HAnover 2-7538
MASS.
Prospectuses onTLequest
Putnam Pond
^Distributors, Inc.
60 CONGRE5S -5TRSET,
New York
Tliinian
TJU51DR
08
The Commercial and Financial Chronicle
(2584)
Continued
gained
from page 32
experience in the
at after many bids had been re¬
ceived from many companies in
manu¬
facture of fuel elements. The last
cost factor, r however,
which is
Fortunately,
operation
A
continuing ..large
have to
be devoted
the
will
many
problems of the! fuel
V.'.".-
technical
cycle.
effort
to
,!'
;
still
Fuel COst
When
we
.
Factors! ?
elements
{
;,
reactor
talk about atomic fuel
cost, we mean many things which
add up to the actual cost of nu-?
clear fuel per
kilowatthour of
which make up
in
ores
which
the
;
fuel
known
cost
today.
Much
milling industries.
terial
oxides
either
sion
plants have
case of ura¬
tion
for
transformed
nium, into
the
plants
experience
The feed
and
many
companies
compound of
a gaseous
nu¬
well
has been gained in the mining and
■
(3) The "feed material" plants
are
of
rather
are
in which the uranium and thorium
into metal or, in
radioactive
which, ; the
The first four elements
clear
ura¬
iV-* '
;
, J
the
products released in fission have
to be disposed of or put in usable
form,.■.
>y '
h' >'
nium and thorium oxides are ex¬
tracted;
in
and
(2) The milling of uranium and
thorium
inserted
produced in the fuel elements
to be separated for re-use
or
(1) There is the mining of ura¬
.
in
;N'
have
<■
nium and thorium ores;
be
the
en¬
the fuel cost:
to
core,
(5) The chemical reprocessing
spent nuclear fuels in which
fissionable materials present
of
ergy released.
We can do no
better than mention these factors
:
(4) The manufacture of the fuel
;
.
gaseous
ma¬
diffu¬
been in opera¬
years
and
many
engaged and have
are
S. D. LUNT & CO.
Members N.
Y. Stock Exch.
Associate Member* American
•
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Vr
■
IN
•
^
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'
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SECURITIES
Complete Trading Facilities
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2 WALL
Rochester, N, Y.
wire
to
Pershing &
Co., New
Norwich, N. Y.
•
York
SPECIALISTS
in New
Jersey
state
ti'1
county
municipal bonds
The
-
a
NATIONAL STATE BANK
OF
NEWARK *
ESTABLISHED 1012
8X0 Broad St., Newark 1, N. J.
Member Federal Deposit Insurance
Corporation
We invite you to use
our
reached,
an
increasingly
large
percentage
of
yearly
additions
will
be nuclear
years
kets—and also
security'
level
in
year.
Italy
in
20
to
25
tions to the installed
Tremendous emphasis in Gene¬
va
significant that the Italian
Company, "SENN," (Societa Elettronucleare
Nazionale)
decided
during the last few days of Sep¬
tember to order a large nuclear
power
station of
an
installed
.capacity of around 150,000 kilo¬
watts. This plant will be built by
was
with
which
is
gas
and
Americans
the
on
fissionable substance
more
produced
than
is
consumed.
The true future of atomic energy
lies
in
this
direction.
Without
oil
coal
and
next
-
Other Aspects
of heat
as a source
means
nuclear
propulsion
of
financed by the World Bank and
SENN's decision was only arrived
will lead to
in
coal
and
for the world
at
of
as
plutonium
a
this
is
true
large. The use
a reactor
fuel
much better utili¬
zation of world uranium supplies.
sians
expect
to build
actor for
the meantime,
STOCK FUND
EATON
Members New York Stock Exchange
CHURCH
~ NEW HAVEN 7, CONN.
STREET
Branch
-
Offices in
„
■
24 Federal Street
Bridgeport
•
Danbury
•
New.York Phone: REctor
New London
2-937?^
•
HOWARD
.
.
BOSTON
BOSTON
ESTABLISHED
■
r
&
INCORPORATED
i
.
Russ
Building
SAN FRANCISCO
TS24
fc
Waterbury
Teletypes NH 194
Prospectuses from
your
Investment Dealer
or
nuclear
re^
details were given
Managed by
209
has
propulsion by 1962. In
EATON & HOWARD
FUND
a
tanker using a boiling water
mar¬
Chas, W. Scranton & Co.
ships
been abundantly; proven by the
historic voyages of the "Nautilus,;'
the "Skate," and quite recently
,
exist
BALANCED
if
or as
of
propulsion either for
ships or aircraft, let us just say
that the technical feasibility erf
a
breeding, atomic energy at best
would be comparable to oil, not the "Sea Wolf." The United States
even to coal.
As you know, our "Savannah" will come into com¬
mission in 1960 as a combined
energy reserves in oil are only a
Ebasco few percent of those known to passenger-cargo ship.
The Rus¬
EATON & HOWARD
,
•
Regarding the other important
aspects of atomic energy where
statistical information.
our
natural
become
scarce.
placed by the British, the it is used
and
when
over
first
capacity will
probably be nuclear.
the fast breeder reactor concept in
It is
Electric
and
take
from now, all future addi¬
acting as architect - en¬
gineer and constructor. It is the
first nuclear power station to be
for both listed and unlisted
production of
,
capacity,
Probably in five to
eight years, nuclear power fcosts
in Britain will begin to fall below
conventional costs; whereas we
will only have achieved parity by
then. This lag in the time scale is
entirely due to the lower cost of
fossil fuels in our country.
Services
complete facilities
Free World
uranium oxide will soon be at a
,,
General
If it's Connecticut
Uranium Ore Reserves
The
excess of 40,000 tons a
The ore! reserves in" South
Africa, Canada, the United; States
"and France, contain at least two
Reactor Cost Experience
made by SENN are particularly million tons of uranium and ^ ah
important in that they show that, additional two million tons is
V" In the three years since- the
with assumed 14% capital charges likely to be available. These fore¬
previous Conference, the world's
and some Other assumptions re¬ casts are higher than those made
first large-scale
nuclear power
garding
fuel burn-up,
nuclear in 1955. If we add thereto the re-,
stations came into operation at
serves in Russia, China, and other
Calder Hall in England, at Ship- power in Italy will be only about
10% more costly than power from countries, world reserves of high^
pingport in the United States, and
oil. These studies also show that grade ore are likely to be of the
recently in Siberia.
The expe¬
there is really very little eco^- order of 10 million tons of
ura^
rience gained by the operation of
nomic difference between the Va¬ niumi, T These
reserves
cover y d
the
large
English and largest
rious types of reactors developed long time at' our, present* rate of
American reactor is invaluable in
in this country and in the United production which is yery much
preparing the way for the next
Kingdom. It is really a "neck to in excess of our present needs for
generation of reactors. The infor¬
neck" race.
the peacetime uses of the atom.
mation
thus
gathered
comple¬
We will likely have; developed
ments that obtained from earlier
Euratom Nations
fusion power long before we run
small-scale experiments. Yet, in
out of uranium.
The
six
Euratom
nationsspite of this experience, capital
Let us not give the impression
costs per kilowatt still appear to France, West Germany, Italy, and
that coal, oil or natural gas will
be about twice those of coal or oil the three Benelux nations—-Bel¬
become obsolete and that their
fired stations, although these costs gium, Holland and Luxembourg—
use will decrease.
Coal, oil and
will continue to fall appreciably announced last year a very am¬
natural
gas*
as uranium,
mean
during the next decade, As far bitious goal of 15 million kilo¬
energy. If we use 100 as an index
as
capital investment is con¬ watts capacity by 1967. It is now
Of our present energy input from
cerned, it is unlikely that reactors apparent that although this goal
will ever be as cheap as conven¬ will not be reached, the Euratom coal, oil and natural gas, only 15
tional power plants, because re¬ nations together with the other of that total energy input is used
to make electricity which, as you
actor plants will always be more nations of Western Europe will
complicated and also require a probably have 10 million kilo¬ know, is not a source of energy
much more exacting technology. watts by 1965. Our own program per se, but a convenient way to
extract the energy contained in
The optimism and confidence that in the United States calls for 1.3
the fossil fuels. That figure 15 is
competitive power is only a few million kilowatts by 1963 and let
short
years
away
is based on us emphasize here that we are not represented by the 600 billion
kilowatthours we produce in this
whatever limited experience
is ip a kilowatt race. With less kilo¬
available today regarding the fuel watts installed today or in the nation yearly in conventional
an installed
cost which shows that nuclear fuel next ten years, our country should plants which have
costs are already lower than con¬ retain its lead because of its di¬ capacity in excess of 130 million
kilowatts.
As you can see, could
ventional fuel costs. The break¬ versified program which lays a
even point will be reached, as far
better foundation for the future we, by a stroke of magic, convert
as the overall economics are con¬
than the atomic program of any overnight that huge amount of
cerned, when the saving in nu¬ other nation. Soviet Russia ex¬ power into nuclear power, we still
clear fuel costs versus conven¬ pects to have two million kilo¬ would have taken care of only
of our energy needs.
We
tional fuel costs will more than watts in the early 1960's and the 15%
offset the excess fixed charges of United Kingdom hopes to com¬ would still need oil iand natural
the plant.
plete 5 to 6 million kilowatts by gas where they are used directly
without going through, the me¬
Let us again stress that high 1965. India predicts 500,000 kilo¬
dium of electricity. In the years
load factors are essential to coun¬ watts and Japan 750,000 kilowatts
to come, in spite of atomic energy,
teract
the present high capital by 1965. All this adds up to about
coal, oil and natural gas will be¬
costs. In this country as in Engr 20 million kilowatts of nuclear
come more important, so. too: will
land or elsewhere, reactors are capacity in ten years out of a
the Middle East which contains the
integrated in existing networks total installed capacity which will
largest known oil reserves. Should
and are thus expected to carry then amount to around 500 mil¬
we fear anything, it is that atomic
the load with the consequent high lion kilowatts in the entire world.
the
break-even
point is energy may not yet be ready to
utilization of the installed nuclear Once
Russians
[u
for the
The; plant' will next decade shows that we have
boiling water reactor. The time to master the fast breeder
boiling
water
reactor
concept, reactor concept and the plutonium
Further¬ judging from the Geneva Confer¬ cycle.
be
largely unknown,
it depends largely on the ence, is growing in favor as a re¬
frequency of reprocessing which sult of the good performance of
in turn depends on the lifetime reactor experiments.
Because of
uranium — uranium hexafluoride of the fuel elements.
This is-a their
comparative
simplicity—
—with subsequent separation of it difficult
metallurgical
problem they have no heat exchanger—
into the two basic isotopes of Which is far from solved and will
they may achieve lower capital
natural uranium, 'i.e., urahium-235 require much more research.
costs sooner than some other con¬
and uranium-238.
;
cepts. Nevertheless,' the studies
against 7 at the time
as
of
abundance
the
uranium which is forecast
more,
of the Geneva Conference in 1955,
18,1958
several countries.
that of chemical reprocessing and
waste disposal per kilowatthour is
Report of IBA Nuclear
Thursday, December
...
the above•
Volume
at
Number 5804
188
Geneva
of
the
ice
breaker
"Lenin," which is due to be
missioned in '59.
—-
ship
It will be
here
Jhore
electrical field
years
tThe Commercial and Financial Chronicle
*
com¬
few
a
than in the
before nuclear
—
propulsion
is
competitive
with conventional ship propulsion-
plants. Here again, let us put the
emphasis on the load factor and
thus
underline the
fact
that
atomic
propulsion will first be
competitive at high load factors of
ficial
of
rate
million.
$250
How
can
that
.
contrast
with
commercial nuclear
aircraft pro¬
pulsion appeared at Geneva to be
much, much further away.
Atomic energy seems to hold a
.
bright future in
cations
of
such
some
other appli¬
demineralization
as
sea
water, whereby the world
some day
may be able to produce
unlimited
quantities
of
clear
potable
while
same
would
we
time
ocean's
from
water
as
the
oceans
obtain
vital
the
at
byproducts, the
inexhaustible mineral
and
sources
the
re¬
heavy
water
future fuel
which will give us our
in fusion reactors. An
abundant
water supply will in time become
as
vitally important
dant energy supply.
as
an
abun¬
ergy.
:;y
.
*
Radioisotopes
come
volved
in
Willard
Libby,
of
of
our
AEC
is
tion
a
tive
which
return
on
already is giving us a 7%
from a national standpoint
the
$7 billion of tax¬
payers' money invested in nuclear
some
installations and equipment. The
Russians also indicated that the
present annual savings to Soviet
industry by their use exceed one
billion
rubles
which, at the
of¬
on
informa¬
material
involved.
of
based
counter
try and agriculture brought about
by their use each year. The in¬
dustrial savings are now at a level
of $500 million per year
material
furnishes
in
cate
future
aircraft
the
both
earth
nuclear
within
propelled
and
L A. E. A.
>
These
*-4
of
which
the
use,
the applica¬
on
measuring the
penetrates or is
which
from
the
material.
The
cal
or
a
photographic emul¬
This mode is used in medi¬
radiography when
a
radioac¬
replaces
X-ray
equipment.
In industry, similar
applications include measuring
the
source
thickness
of
be
may
able
bonds
and
to
an¬
>
break
form
where
bonds
similar
vulcanization
in
new
materials
results
of
would
rubber
be
without
sulfur and heat.- The petroleum
industry is outstanding in its sup¬
port of radiation research. Radia¬
tion
preservation
reached
States
a
point
where
of
in
the
U.
a
foods
has
the
United
S.
as well as
disposal
with
waste
International
metal
radiographing
follow
the
atoms
in
Established
complicated
physical
path
transfer
even
to
the third-party liability prob¬
in
the
international
field
seems to lie in the setting
up of
lem
-
ers
and operators for each atomic
reactor
States.
is
over
project
in
the
United
This $500 million coverage
and above the amount of
third-party
deemed
and
liability
reasonable
available
by
for
insurance
the AEC
each
project
from the private insurance com¬
panies.
•
like
the
World
embodiment
ples
of
Program
of
,
Bank.
the
It
high
the
"Atoms-for-Peace"
outlined by President
Eisenhower
speech in
in his most
December
field, how¬ on the attitude of the communist
the problem is enormously member nations which have been
more complicated.
A study under using the Agency as a political
the auspices of the Harvard Law -platform;
thus
obstructing
the
School, released in May of this Agency's real tasks. However, in¬
year,
points to the complexity ternational
cooperation
in
this
which
arises
existence
of
not
only
separate
atomic installation located in
one
country, having been designed or
equipped by a supplier in another
country,
sons
or
could contaminate per¬
property in yet a third
country.
In
of
case
nuclear power
less would
accidents
involving
ships, there doubt¬
arise additional
com¬
plications in the already complex
problems of territorial waters and,
of
course, special law will find
still different problems to adjudi¬
field
in
will
time
probably
as
impose itself
implications o"f
the
atomic
energy are such that the
communists themselves will real¬
that they need to cooperate
with the rest of the world.
ize
An Agreement for Cooperation
in ^ the
civilian
uses
of
the
and
six
European
nations
Atomic
forming the
Energy
munity—EURATOM—was
on
Nov.
jective
the
as
its major ob¬
construction
Continued
on
Founded 1898
Railroad and Public Utility
Securities
Street, Boston 5, Mass.
HARTFORD
HARRISBURG
BINGHAMTON
ALBANY
National Distributor
NEW YORK STOCK EXCHANGE
BOSTON STOCK EXCHANGE
NEW ENGLAND FUND
,
MIDWEST STOCK EXCHANGE
Organized 1931
t
AMERICAN STOCK EXCHANGE (ASSOCIATE)
BANGOR, ME.
LEWISTON, ME.
.
GREENFIELD, MASS.
PORTLAND, ME.
FITCHBURG, MASS.
LAWRENCE, MASS.
KEENE, N. H.
.
it
UNDERWRITERS and
DISTRIBUTORS of
GENERAL MARKET
in NEW ENGLAND
MUNICIPAL BONDS
for
more
than 100 YEARS
Specialists in Bonds of Municipalities
«
r
.
.
'
4
within Massachusetts
Estabrook & Co.
15 STATE
Boston
Boston
New York
...
•
Hartford
STREET, BOSTON
Telephone LAfayette 3-2400
'
NATIONAL BANK
Teletype BS-288
Ponghkeepsie
Providence
Springfield
Members New York atuLBoston Stock Exchanges
■
Main Office; 30
-
•
'MEMBER
of BOSTON
Congress Street, Boston 6, Masg.
FEDERAL DEPOSIT INSURANCE CORPORATION
_
Com¬
signed
8, 1958 in Brussels. Thd
Agreement has
Purchasing and Distributing
PORTLAND
atomic
energy between the United Stated
State, Municipal, Corporation,
BANGOR
before
Agency's future success, however,
depends to a considerable extent
or
YORK
inspiring
1953
the United Nations Assembly. The
of
NEW
the
In the international
18S7
Boston Stock Exchanges
is
princi¬
ever,
BOSTON
AUGUSTA, ME.
Atomic
Energy Agency in Vienna, Austria, will have to deal. The answer
multilateral agreements, i
>
catastrophic proportions is in¬
Apart from this insurance prob¬
deed infinitely small yet it is not
lem, we have bilateral agreements
nil.
This is why the Anderson- with
many nations to fosler their
Price Bill had to be enacted by research
and power reactor pro¬
our Congress to solve the thirdgrams.
The I.A.E.A. should be¬
party liability ■ problem in the come the ultimate
depository of
United States. This Bill provides such
bilaterals. f
'
for $500 million of government
The Agency is a specialized or¬
indemnification to reactor build-,
ganization of the United Nations,
Atomic
moving sheet
Energy Commission is cooperating
the in¬ in
establishing the U. S. Army
ternal
structure
of
a
piece of
Ionizing Radiation Center to be
equipment, measuring the liquid located near
Stockton, California.
level in a closed container, etc.
The Army Quartermaster Corps
In the third mode of
use, the has
undertaken, in conjunction
radioisotope serves as a tracer to
of
indeed
are
from the
legal sys¬
impossible by chemical or physical tems, but also from the possibility
methods. In the rubber industry, of complex circumstances. To use
radiation has already led to the a relatively simple example, an
molecular
Townsend, Dabney &. Tyson
30 State
'■f
problems
are
those
INCORPORATED
York and
■if "•
?
COFFIN & BURR
Members Nero
beyond
atmosphere.:
of
Unborn Uses
diation
reactors
to
operate than had been
believed. The risk of an accident
running through a
being utilized in a human
being, or an atom transferring
chemical
that
safer
be
pipeline,
sugar
radioactive
radiation-detection device may be
sion.
excess
of
target
about the
Commissioners emphasized
the tremendous savings in indus¬
in
the
this mode
In
nations.
one
use
radiation
reflected
brilliantly
the
is
ma¬
isotopes can readily be reduced to
There are many unborn uses of
three major types of use.
radioisotopes in the fields of medi¬
In the first mode of use, the
cine, agriculture
and
industry.
radiation acts on materials. Radio¬
Isotopes may also contribute to
isotopes are used simply as a our
knowledge of such matters
source
of radiation much as ra¬
as
the
atmospheric
circulation
dium
and X-ray machines
are
problem. We may thus learn to
used. A target material is affected
predict weather more accurately.
in some manner by the radiation.
With the continued growth of
This
target
may
be
a
cancer
the nuclear power
industry, hun¬
patient receiving radiation ther¬
dreds of thousands of kilowatts
apy, or a plastic being irradiated
of radiation unavoidably will be
to change its properties, or a bag
produced. This gamma radiation
of
potatoes being irradiated to
is enormous in comparison with
prevent decay.
the energy available from ordin¬
In the second mode of use, the
ary chemical reactions. This ra¬
radiation
Dr.
The
traced may
many countries that it is just- from one kind of molecule to
impossible to review them here. other in a chemical reaction.
The
fundamental
principles in¬
tion
outlined
biochemical reaction.
so
radiation
put were
by
several
or
oil
of radioisotopes have be¬
so diversified and extend to
Uses
At Geneva, the many industrial
uses
to which radioisotopes and
are
.
terial labeled and
the
Radioactive Isotopes and
Radiation
a program
will solve many of the
basic problems that may lead to
the sterilization or pasteurization
69
.
effect
IH
'
industry,
which
..
;'.
marine
outlook, for
with the food
reactions.
of
; use
t
the
hopeful
applications,
portant
radioisotopes.
atpmic energy holds for us when * Radioisotopesare
incorporated
the radioactive isotopes alone, too' into-materials of interest, and the of foodstuffs by irradiation tech¬
often improperly called the radioisotope - used
as - a
tracer niques.
"waste," will make the entire serves as a tag or a label which
TV ' /
•
atomic energy program of this; na¬ reveals the presence and identity
International Developments
tion pay its way, quite independ¬ of the material, whether it is in¬
A very comforting conclusion
ently of the more vital aspects of volved ,in a physical or a me¬
atomic energy as a source of en-; chanical transfer, or in a chemical of the reactor experience so far
-
In
biological
or
This to date is still the most im¬
anyone
future
which the oil tanker is the ideal
example.
chemical
exchange, is about
-
brilliant
the
doubt
(2585)
.
of
page
one
70
>
70
The Commercial and Financial Chronicle
(2586)
Continued jrom page
frightful
69
glamorous.
nor
The
NUCLEAR
INDUSTRY
"
.
.
.
Thursday, December 18,1958
sentatives
will maintain and improve*
COMMITTEE
:
high standard of living, en¬ Paul F. Genaehte, Chairman
q. /
joyed by the technically advanced
The Chase Manhattan Bank,
atom
tive
„
a
forcible and effee-
in as
way as
possible.
'
'
.
the
Report of IBA Nuclear
Indnstiy Committee
millioa kilowatts
of
nuclear
those
ca¬
the next: five to
using reactor types
developed in the United States.
The- Agreement is expected to
years,
into
come
convenes
force
after
Congress
It calls
United
contribute
:
#
the
and
in January 1959.
lor:
Financial Guarantee
.
equivalent
domestic
guarantees
those
to
U.
S.
market
a
to
to
cover
ments
will
arrangements
look
a
to
up
come
A
tinuation of our efforts
United
that
by
chemical
tary
the
re¬
does
it
atom
able
ceived
terms
comparable
to
the
Continued
from
Smith, Barney & Co., New York
Washington
W. S. Hildreth
in
v
this
does
many
facets
bomb,
dreamers
The
own
stock
capital
atom
of
(c)
recent
to
"Full
Reinvestment
Under
owners
con¬
neither
years,
outstanding dividend and earnings growth
recorded by
many Canadian securities has
can
Treat¬
home
present law
their
sell
and
homes
capital, let us say
it, he might well not be
from makingj the/sale,
and the Treasury would
behefit
correspondingly. We should urge
that
capital
gains tax
liability
buy another'or equal or greater
within a year without in¬
curring capital gains tax liability.
We
feel
that the
same
to
in
heme
96%
recognition
of
infla¬
and the illusory
of gains
resulting from
The logic behind this pro¬
pressures
compelling, and' we feel
should be promptly enacted.
(d)
Capital
Limitation:
Levy
reach
should be limited to
an
issuers, dealers, and others
this,
growing
an
asset
originally received at no cost re¬
quires a taxpayer to pay a tax
equal to 25 % of the present value
of his-- capital. Itr is obvious that
very few sales are made under
investment
following specialized
Edward
of
Standard
Oil
of
New
Jersey
F; Pl-eseott
Prescott, Shepard & Co., Inc.,
Cleveland
Ralph W.
Simonds
Baker; Simonds & Co.. Detroit i.
—of
the
value
of. the
25%
lower.
sold,
whicnever
limitation
a
for
amounts
assets,
gain,
Such
release
of
or
Jack
is .Richard J. Stern
would
Stern. Brothers &
of
sale
T, Stephens
Stephens, Tnc., Little Rock
;
tremendous
property now effec¬
tively immobilized. It would make
Kansas
of
our economy a great
venturesome equity capi¬
tal, and: it would greatly increase
the Treasury's revenue from the
tax.
We
believe
that
this
is
We
this
Views
on
the
known to his
will
make
Washington
Trubee, Jr.
Trubee, Collins. & Co.. Buffalo '•
Respectfully,submitted,
a
our
subject of- taxation
Congressional
repre¬
stocks
now
connected with Chanrter
Securities
Co.,' 39 South La Sallfe
Street;
and' bonds.
TRADING
DEALERS
department fully staffed with
personnel
to
provide
execution
of
orders
and
prompt
in
Canadian
seasoned
our
MUNICIPAL
AND
SECURITIES
accurate
securities.
276 St. James Street West
King Street West
Toronto, Canada
prompt attention
Montreal, Canada
Telephone: EMpire 44161
inquiry is invited
and will receive
GOVERNMENT,
CORPORATION
50
Your
Hi
Telephone: Victor 5-4261
Ottawa
Winnipeg
London
Vancouver
Hamilton
Calgary
Kitchener
Gairdner 8
Quebec
Sherbrooke
Windsor
Edmonton
New York
Gompanij Inc.
Street, New York 5, N.Y.
McLeod,Young,Weir & Ratcliffe
WHitehall 4-7380
MEMSESS 00 THE TORONTO STOCK EXCHANGE
CANADIAN STOCK
MONTREAL STOCK EXCHANGE
EXCHANGE
Affiliate:
i
Gairdner &
STOCK
Company Limited
Members of Leading Canadian Stock
Exchanges
50
Business Established. 1921
Montreal
Kingston
Hamilton
Quebec
Kitchener
London
Private wire system
Calgary
Edmonton
Winn i err
New
Yorf
ORDERS
EXECUTED OW
ALL
'
CHICAGO, 111.—Edward F. Dee,
Jr. is
LIMITED
reach current markets in
or
•
With Channer Sees.
(Special to Ti/f Financial chronicle}
foreign corporations.
high grade Canadian
;
1
-
Frank €.
hope that each member of
Association
;
Auchirtcloss, Parker & Redpath,
.♦
available to
deal
Co.,
City W:"--
Mark Sullivan, Jr.
disposal.
the "loeking-up"
effect* of the capital gains tax is
tremendous when potential capital
gains tax liability is high. A buyer
*
'
;
"
percentage — say 4%, which is
equal to roughly a year's income
these circumstances, and that the
collected is negligible.
j
George1 A. Newton
G. H. Walker & Co., St. Louis
logical proposal which we should
urge with all of the means at our
revenue
Orleans
»„«Rid general brokerage which enables
to. maintain,
Vancouver
"
;
Labouisse
help finance the expansion of Ca¬
companies and" the establishment of,
branch plants for
Toronto
^
*
Put another way,
maintain the
60 Wall
v
Cincinnati
Schoellkopf, Hutton &
Pomeroy,' Inc., New Yerk
reasonable
a
tax
of
■
-
:
James K. Miller
of
was
P.
to
.
" *
Howard, Weil, Labouisse,
Friedrichs 8& Company,
.V"'
New
inhibited
treatment
owners
-
DISTRIBUTING
.
V
..
UNDERWRITING
.
;
v
>*'.,'1:
Charlottesville
John
of his
amount
value
financial services:
all
"
Kirkpatrick
"
:
^
Kirkpatrick-Pettis Co., Omaha
a
only 80% of his capital left
to reinvest following a sale. If the
Treasury were to be less greedy
and permit him to retain a larger
$5,000.,
ment":
nor
of the
had
is
The
To assist:
corporate
$10
have
now
Under present law sale of
understandably attracted the interest
increasing number of investors.
at
make it
desirable that the loss limitation
tions
the mili¬
the glamour
some
it.
in
the
of
lie in
as
lie
not
before
ever
assets, plus the inflationary condi¬
great
...
•
.
The -Peoples National Bank,
share, the going
price in 1946, who now,. 12 years
later, wished
to sell it
at the
present price of about 60, would
it
•
& Co.,
Stewart R.
than
all
confidence
of
its
can
posal is
us
V
-
Morgan Stanley
New York
/
T. Ijams
y..;
W. C. Langley & Co., New
York,
them.
new
^ -
^
Sons, Baltimore
"
James M; Button, Jr.W. E. Huttoir & Co.*.
tionary
...
♦
Co., Inc.,
Ben jamin H. Griswold, HI
Alex; Brown &
Mark Sullivan, Jr.
\
nature
nadian
'i
-
;
Louisville
;
granted
to
I
na¬
should be accorded to all property
The preference now ac¬
we
t.
-
.
Marshall, Seattle
The Bankers Bond
29
page
Co., Nashville
Thomas Graham
*
Edmond N. Morse
owners.
seeking
Foster &
Johnson, Lane, Space
Auchincloss, Parker & Redpath, Herbert S. Hall
corded
market,
J. C. Bradford &
Albert O. Foster
"Corporation, Savannah
>;
con¬
a
'
be raised
future
aspects
processing services will be avail¬
under
The
Respectfully submitted,.
closing, the future of atomic
energy
assurance
States
on
'•
I
■
^
J. C. Bradford
Thomas M. Johnson
tional and international scale.
ramifications.
In
plants; and
long-term
Wagenseller & Durst, Inc.
Los Angeles
~
life, will be¬
only through the
ours
New York
William S. Hughes
became
: v
f
Shearson, Hammill & Co.,
Corporation, New York
nations*
that
~
COMMITTEE:
•
Walter Maynard* Chairman
Research
and
States
We
increased
with
industry
new
and
portion
World.
Free
towards
United
the
in
the
in
of the capital costs of the nuclear
power
National Securities &
;
Ma it land
Export-Import Bank of
million
Robert Colton
A firm foundation has been laid
Long-term line of credits from
$135
underdeveloped
federaltaxAtion
/ "
•
for sound atomic energy develop¬
the
recovered from the power reactors
in the program;
the
great" promises
;
:
Conclusion
10-year period
plutonium
a
for
the
all the good things of
to
'
basic
These
industry;
Guarantee for
of
"New York
and
enormous:
the
by
offered
energy is
for
the be of mutual benefit. The prelim¬
United States of up to $90 million inary
International
Agreement
for a
10-year operating period and the legislative basis for ini¬
with:, respect to the cost and in¬ tial U. S. participation in the joint
tegrity of the fuel elements re¬ program as contained in the Euratom
Cooperation Act of 1958
quired: in the reactors;
Long-term assurance of an ade¬ were approved by Congress in
quate nuclear fuel supply at prices August, 1958.
Financial-
for
still growing. The atom also holds:
each
million
$50
to
up
will
States
this program.,
.
tite
dustry.
evident at Geneva in 1955,. al¬
An integral part of the program
though on a different time scale
is a joint 10-year research and
than had been envisioned at that
development project. During the
first five years the Community Conference.
Atomic energy, like
within
pacity
seven,
nations of the world,! whose appe¬
available to U. S. in¬
then
Respectfully submitted, v J,
,
EXCHANGES
King Street West, Toronto, Canada—EMpire 4-0161
w
Volume
Number 5804
188
The Commercial and Financial Chronicle
...
(29W)
s.
Continued
from
H. Lyman Greer
33
page
The
Fifth
V
«
Third
Union
m
Chemical Corn Exchange
Bank,
H. Hawes
origin in the unbalanced budget.
Budget Cost Versus
.
/.
Inflation Toll
..
i""
•
much
'
,
than
forest cost involved in striving for
debt structure is nominal
compared, with the possible infla¬
tionary consequences of artificially created easy money; There
.
is-
real
a
the
danger that
attempt to limit
we
icing
We
;
that
ar-
he:
serv¬
but
some
is-
there
no.
in
free
our
is
Philadelphia
in
deserves
monetary
The
indicated
denying
an
the
of
awareness
Robert
C.
strated
cials
and in the entire world
ations.
ing to
fight
see
are
how resolutely
with
trol.
im¬
Emil J.
PALM
Company,
securities
if
we
Question
People
we
deal
Yet
people today
more
measure
ment
a
including
into
other
stocks'4 Fur¬
thermore, the preference of'inves¬
tors for shorter term Government
securities
in
against longer issues
as
recent
markets
the difficulties the
in
has
enhanced
C. F. Childs and
of fiscal and'
delve into
lems
that
any investigation
monetary policy will
some
we
of the basic prob¬
face such as the
Federal debt structure and unbal¬
City Bank of
Carr is
now
Co., 235 South Fifth Street* men*,
bers of the New York Stock Ex¬
change.
A. E. Ames & Co.
of
UNDERWRITERS AND DISTRIBVTOBS
..
A. E. Ames & Co.
■
Members Toronto and Montreal Stock
Shelton
^
wnn*
Exchanges
OFFICES IN 14 CITIES IN CANADA AND ENGLAND
Dallas, Dallas
Rudolf Smutny
R. W.
Pressprich & Co.,
A. E. Ames & Co.
New York
Girard L.
Company,
Salomon
Bros.
Incorporated
;
Spencer
&
Hutzler, \
New York
New York
James A. Cranford
The Atlantic National Bank of
Joins
Jacksonville, Jacksonville
C. J. Devine &
California
budgets and not place their
emphasis on artificial means of
R.
Bank, Los Angeles
Guenther
Green
The Chase Manhattan Bank,
New York
anced
BUSINESS ESTABLISHED 1889
ALTON, 111.—E. M. Guenther has
joined the staff of Municipal Bond
Corp., 205 West Third Street. Mr.
Co., New York
W. Wayne Glover
Sheldon
Municipal Bond Corp.
(Special to The Financial Chronicle)^
Stewart A. Dunn
cer
was
previously
of the First National
an
offi¬
Bank
CANADA...
&
Trust Co. of Alton.
How
our
past experience can be
your guide to
'/£.
M
Our
its future
long and specialized experience imtbe
underwriting and" distribution of Canadian
securities, combined with
BONDS
our
private wire
system,, coast-to-coast network of offices;, and
STOCKS
memberships in all Canadian stock
changes,
can
ex¬
put you in immediate touch
with the Canadian markets
you
need.
-
We
provide prompt, accurate service to
American banks, dealers, and institutions
Markets
maintained in all classes of Canadian external
Slock orders executed
Exchanges,
DIRECT
or
net New York markets quoted
PRIVATE
WINNIPEG,
maintain active markets
WIRES
CALGARY,
BELL
TO
TORONTO,
VANCOUVER,
SYSTEM
MONTREAL,
VICTORIA
TELETYPE
NY
AND
on
on a
request.
W. C. Pitfield & Co., Inc.
OTTAWA,
30 Broad
HALIFAX
Street, New York
1-702-3
HAnover 2-9250
Canadian Affiliate—
Dominion Securities ©rporatione
Associate
Member
American
Boston
Philadelphia
40
EXCHANGE PLACE,
Calgarv
Exchange
NEW YORK 5
Telephone WHitehall 4-8161
London. Eng.
Ottawa
Stock
Canadian
Affiliate
and
—
Canadian
Member
Stock
Toronto, Montreal
Exchanges
Net U.S.
basis where desired.
the Montreal and Toronto Stock
on
interested in Canadian Government,
Municipal and Corporate securities, and
and internal bond issues.
Toronto
W. C. Pitfield & Co., Ltd.
Members of the
Investment Dealers Association of Canada
Montreal
Associates—
Winnipeg
Vancouver
Halifax
Hugh Mackay & Company
Member
;
Harry M.
Lyons, Mt
with W.
Limited
National Bank
16
^
FlNANClALCftlRONICtE)
LOUISVILLE;. Ky
Investment Securities
-Republic National Bank of
'
Chicago
-
Treasury faces
that
(Special to TSE
Sutro
branch
Canadian
Discount Corporation of
New York, New York
<
Lockett
F. Newell Childs
lengthening the debt.
We hope
*
Burns
American Trust Company,
San Francisco
common
National
First
^
WittfW.L.LyonsCb.
Corporation,
Boston, Boston
Dwight W. Chapman
securities
:
Herbert N. Repp
Detroit,
Minneapolis, Minneapolis
history. As a con¬
have seen in some
flight from Govern¬
issues
The
Northwestern National Bank of
we
—
L. Sumner Pruyne
Detroit
cent economic
officer,
Pattberg, Jr.
New York, New York
Milton S. Bosley
fixed income securities than
any time in this country's re¬
sequence,
First
City Bank of
Cleveland, Cleveland
Wendell T.
headquaftmsrifttlte
Wilkes-Barre-
Delmont K. Pfeffer
The National
are ques¬
ptfsttX** in
Jan*. lu Ma
Chicago, Chicago
Robert B. Blyth, Chairman
National Bank of
oft
South Franklin street.
&r Co. has opened a
office at 44 Cocoanut Row under I
the management of Andrew T.
Balconis.
Continental Illinois National
Bank and Trust Company of
are
any
BEACH, Fla.
John H. Perkins
mone¬
COMMITTEE
tioning the advisability of owning
at
difficult fiscal and
our
GOVERNMENTAL SECURITIES
Long Terms
will make1 his
Profit firm's
the
Achttk
to
Harris wHlt become ai
the
;
wilkes-barre, psfrhtennhft
New York
Respectfully submitted,
going to be able to prevent this
from happening.
of
manager
Bros.
Company,
The First Boston
watch¬
tary problems.
Government
•
to
its debt management oper¬
Investors in this country
inflation: suggests to. many
people that inflation is out of con¬
Certainly it is not the pur¬
pose of monetary policy to force
the Treasury debt into a shorter
position and certainly we need
willing, investors in longer term
was
Sullivan in
Mr.
New York
determination
a
prove
indicating, their intention to
associated- with
.
Sutro Bros. Branch
Morris
Bankers Trust
tary policies have an effect that
is not intended just as the too fre¬
quent public utterances of ■offi¬
-
<-
Allyn and Co., Inc, 30 Fed¬ Jv Hi* Breaks & Cot
Street.
past
Chicago
problem and has recently demon¬
our mone¬
f
Sharing and Pension' Plan Depart¬
'
instances
become
has
■
ment for Keller# Co.
The Northern Trust
Treasury by its actions has
afffHbted
previously wit!* t M gfcnrt!
& CO.
Pat G. Morris
i
become*
X H. Brooke
BOSTON, Mass.—Eugene Sulli¬
van
Guaranty Trust Company of
New York, New York
policy
-
Eugene Sullivan With
A. C. Allyif & Co.
A. C.
Security-First National Bank,
Los Angeles
'•
has?
bers of die New York and Midwest
Stock Exchanges.
Mr. Hawkins
Exchanges.
eral
Ralph F. Leach
his cooperation. Per¬
secures
.
Frederick G. Larkin, Jr.
economy
decision.
national debt.
...
•
need a- flexible monetary
policy
investor
west Stock
(Special to The Financial Chronicle)
The Philadelphia National Bank,
haps at times the investor has not
been given all the consideration
our
that in
The
Hawkins*
affiliated with First California Co.
George B^ Kneass
.
;
will do
bifrarily the interest cost of
.
borrowers.
ducements
of sound money' ser ious
cause
damage if
f
we
many more in¬
in this : country
are
savers
America, N.T. & S.A.,
San Francisco
necessary to the continued growth
of our country and thei interest
rate- is one of the important in¬
;„a sound
.
there
as
dividual
In any event, the increased i»-
Bank of
i
louts; Mfci— wmm fi.
with Fusz-Schmelzle &
Co., Inc.,
Inc., 300 Montgomery" Street, mem-' Boatmen's
Bank Building, members of the Pacific Coast and Mid¬
was
Russell A; Kent
* interest
''
st:
Chicago
limiting interest cost. Attacks on
rates have always been
politically popular and yet one
wonders why this should be inas¬
problems of the period have their
'
V
Harris Trust and Savings Bank,
(Special tathe Financial
FRANCISCO,, Calif.—Le-
E. Killebrew Jr. has become
roy
New York
,
(Special to The Financial Chronicle)
SAN
Alfred H. Hauser
.Hardin
With First California
Trust
Co., Cincinnati
IX
.V
of all Canadian Stock Exchanges
V-
<
*(T'
72
The Commercial and Financial Chronicle
(2588)
Continued from page
Superficially, the fixed charge flated costs of doing business.
data seems satisfactory, Some idea of management's prob¬
careful; examination of lem may be gleaned from the fact
available statistics reveals that the that based on 1947-1949 as being
34
coverage
whereas
Report of IB A Railroad
good showing is more reflective
of an extremely modest debt. Fur¬
thermore, it should be remem¬
Securities Committee
that
bered
the
major railroads
place will
taking
now
.request
recovery
and
continue well into 1959.
would be compensatory
nondiscriminatory.
7 /
results
of
many
well below
were
the average.
Commission
misinterpret
Congress. It is too
nearly to say whether these fears
are well founded, but it is hoped
merce
the
the
intent
of
Commission
will
be
realistic
in considering requests for com¬
petitive rate adjustments. In the
opinion
of your
Committee, a
regulatory policy for transporta¬
tion rates, which gives the car¬
riers freedom to make competitive
but compensatory rates, would be
a most effective
step toward im¬
proving the credit base of the in¬
dustry.
The
of
trend
declining
traffic
of
decrease
a
nine
Based
results
on
for
the
12
months
million,
$908
or
Net
railway
Class
the
for
I
of
months
nine
operating
than
less
income
roads in the first
the
current year
$212 mil¬
totaled $438 million, or
lion
the
million
$700
earned, in the same period
of 1957.
The relationship between earn¬
ings and fixed charges showed the
charges for the first nine months
to be earned three times, figured
before the deduction of Federal
income
against four
times in the corresponding period
of
taxes,
towards
4.93
of
April, 1958.
back to the
Although not quite
1957 level, carloadings
have, for
last several months, shown a
tendency to improve and there is
every indication that the business
the
month
of
of the Interstate Commerce Com¬
mission
service, are still being conducted
at a substantial loss. For the year
1957, revenues from this
aggregated $1,238,000,000
was
insufficient
$723 million to
Recommends
in 1958
and
4.30 times
in
September, 1957. Further im¬
provement in earnings protection
for fixed charges may be antici¬
as
the traffic picture
con¬
tinues to improve.
INCORPORATED
64 Wall Street
NEW YORK
CANADIAN INVESTMENT
SECURITIES
AFFILIATES
LEGGAT,
LIMITED
Established 1920
Passenger
Traffic
If
the
public
interest
requires
service
and
committee be¬
then the traveling
public using this mode of trans¬
portation must be subsidized. It
is beyond the scope of this report
to suggest the form and extent of
such a subsidy.
your
it does,
lieves
is
noteworthy that the New
Railroad
last
summer
into
BELL,
GOUINLOCK
LIMITED
Members Montreal Stock Exchange
Montreal
en¬
of
management's desire
greatly strengthen the position
the
industry
current
series
is
of
found
studies
in the
being
made of possible mergers and co¬
ordination of facilities.
Mergers
1958.
The
a
Virginian & Southwestern,
lessor line of the Southern Rail¬
Company,
way
bonds in March.
ried
and
a
sold
the interest cost to
pany
issue
was
were
4.33%.
iin
the
can
industrial
Investors in
development of Canada and of benefit
used to retire
-
a
low ebb.
These
Marketwise,
the last year,
railroad security prices, in gen¬
eral, followed the pattern of the
earnings trend. The prices for the
bonds of the better credits, such
as
Union Pacific, Santa Fe, Nor¬
folk & Western, etc., were deter¬
mined by money market condi¬
tions.
7
over
ried
a
bonds, due ih 30 years, car¬
41/2% interest rate and were
extremely popular with investors.
The interest cost to the company
4.57% and the return to the
was
investor
was
4.50%.
to
Company
Greenshields & Co
(n.y.)
Idlc
Limited
Members of
The
Head Office:
Specializing in Canadian Government
Investment Dealers' Association of
Canada
355 St. James Street
W., Montreal
Provincial, Municipal and Corporate Securities
Branches in the principal Cities of Canada
64 Wall
Nesbitt, Thomson
Members
Montreal
Stock Exchange
Canadian
Stock
Nesbitt, Thomson
25 Broad
140 Federal
Direct
New
—
Toronto Stock
Exchange
Canadian Affiliate
,
Greenshields & Co Inc
Company, Inc.
Street, New York 4, N. Y.
Business established 1910
Street, Boston, Massachusetts
wire- connections
between
York, Montreal, Toronto, Ottawa,
Hamilton, Kitchener,
London (Ont.), Winnipeg,
Calgary and Vancouver
Street. New York
& Co.
Exchange
and
maturing
debt.
participate in Canada's assured growth.
and
com¬
produce, in the opinion of
Also, in March, the Rock Island
your committee, expense savings
sold $16,000,000 first mortgage 25that would make the present ag¬
year 5V2% bonds at an interest
gregate earnings of the railroads cost of 5.64%. These bonds were
look small by comparison; coordi¬
sold to obtain additional working
nation also promises the oppor¬
capital.
tunity of important savings. If the
In
May, 1958, the Virginian
industry is to prosper as a part Railway sold
$12,000,000, 25-year
of our free enterprise system, such
first lien & refunding 4% bonds
savings as may be realized from at an interest cost of 4.05%. Pro¬
mergers and coordination of rail ceeds
were
used
to retire
$4,facilities must not be dissipated
500,000 short-term loans and the
in payments to labor or reductions
balance added to working funds.
in service charges, while the rate
Last July the Southern Railway
of return on the investment in rail
placed a $22,000,000 first collateral
transportation facilities is at such trust bond issue on the market.
to
Nesbitt, Thomson
the
would
be of valuable assistance to tbose interested
selecting suitable investments through which
car¬
Proceeds of the
OPPORTUNITIES IN CANADA
Our facilities
$5,000,000
These bonds
maturity date of 25 years
an
arrangement with
In addition to the above secu¬
municipalities in its serv¬
rity offerings there were several
ice area in the vicinity of Boston
security exchanges proposed by
whereby it will receive over a
certain railroads to modify their
period of % year from the mu¬
capital
structure.
All
of
these
Stock Price Recovery
nicipalities a sum of $900,000 for
propositions had as an objective
the purpose of maintaining serv¬
Railroad stock prices have vig¬ tax savings
through the substitu¬
ice.
Similarly, the Pennsylvania orously recovered from their lows tion of bonds for stock. The roads
and Reading Railroads more re¬ reached
last
January- and
the involved are the Monon which
cently agreed \with the City of averages are now up more than offered the holders of its Class
Philadelphia to provide certain 50%'.
Many
railroad
common "A" common, par $25, income 6%
passenger train service under con¬ stocks are close to or recently sur¬ bonds par-for-par plus % share of
ditions that involved the city pay¬ passed the highest prices at which Class "B" common.
ing to these companies, over a they sold in the 1956-1957 period.
The "Katy" is currently offer¬
period of a year, sums totaling Does
this
enthusiasm
for
rail ing its holders of preferred stock
$165,000.
equities portend a new horizon for a new $100, 5%% income deben¬
The
railroads
are
constantly the rail industry? There is much ture, $100 certificate to be liqui¬
striving to improve their earnings reason to be optimistic, based on dated out of income^ and one share
position and eliminate economic what has already transpired this of common stock for each share
waste. The work of management year, as well as what is in the of preferred stock.
in this respect represents a hercu¬ offing, wholly apart from the ex¬
Earlier this month,
the Vir¬
lean effort in the face of political cellent traffic outlook both near- ginian Railway offered the hold¬
ers
of its non-callable preferred
factors, labor demands and the in¬ term and long-term.
various
BELL, GOUINLOCK & COMPANY
25 King Street, Wes1
Toronto
cover
the railroads to provide passenger
Haven
CO.
service
which
amount of
the allocated
an
Subsidization
tered
GOUINLOCK &
by
costs of the service.
It
BELL,
accounting rules govern¬
ing separation of costs by class of
of
times
pated
evidence
train service opera¬
tions of the railroads, on the basis
Passenger
that
railroads
petitive bidding. In January, the
Chicago, Burlington & Quincy re¬
approxi¬ ceived a bid of 99.299, an interest
mately 100%, material and supply cost of 4.43% for $24,500,000 first
prices are up about 40%, while & refunding mortgage 4% % bonds,
the
average
charge for freight due Feb. 1, 1978. Proceeds of the
transportation, the backbone of issue were applied towards the
the railroad industry, is not over retirement of
general
mortgage
20% higher.
4% bonds that matured March 1.
to
the
preceding year. For the
September,, the corre¬
sponding figure of coverage was
end
the last ten years never ex¬
as
for the railroads, that began in the
latter part of 1957, was arrested
the
over
five
were
labor cost has increased
ceeded 4.31%.
11.5%.
There
raised funds this year through the
sale of mortgage bonds at com¬
equal to 100, the average hourly
of months ended Sept. 30, 1958, the
Prospects for Rates and Earnings
1958. Class I Railway operating earnings of the railroad industry
in relation to property investment Merger and Coordination Studies
This
section of the 1958 Act revenues aggregated
$7,012 bil¬
showed a rate of return of only
Rail management can be relied
lias
caused
concern
in
certain lion,
as
contrasted with $7,920
-quarters lest the Interstate Com¬ billion in the like period of 1957, 2.58%. The annual rate of return on to continue its great work, and
first
the
For
Thursday, December 18,1958
...
Montreal
Toronto
Sherbrooke
Quebec
Ottawa
London, Ontario
Winnipeg
m
Volume
188
Number 5804
.
.
.
This
debentures.
exchange
further increase earnings.
should
stock the opportunity to exchange
such stock for 50-year, 6% income
Then
we
and coordination of
offer
Continued
will
the basis of $11.50 par value
bonds for each share of pre¬
on
offerings.
facilities that
level of recent years.
approximately $150 million since
the year. f
^
■
•;* ;
:
COMMITTEE
.
R.
Looking
ahead, the future
I
'J:*;
the immediate future.; Operating
economies from the adoption of
F.
5 '
J
Goldman, Sachs & Co.,
Co., New York
Dick & Merle-Smith,
New York
V
New York
Eugene Treuhold
L. F. Rothschild &
Co.,
/
'
:
ROBERT
:
.
:
B.
y y
LOOMIS,
.v+
KRUG. THOMAS B.»
Bioren &
W.
Co.,
JOHN
Philadelphia
A.
-.
Prescott, Shepard & Co., Cleveland
KRUSEN, II. STANLEY
Shearson, Hammill fc Co., New York
!
'
•
LYNE, LEWIS F.*
Mercantile National
Bank, New York
New York
...
-
V
,
Hornblower &
.
Guaranty Trust Company, New York
Q. R.
: r
1--^
TORONTO
.*
Equitable Securities Corporation,
*£& u>nbon, Bng-
W.
'
JAMES
E.
LEES, Jr.,
& Co.,
New York
York
^
JULIAN A.
- £•:
Exchange
HUDSON B.
MARLIN, W.
Bache & Co., New York
A. G, Becker & Co., New York
LEWIS, ROBERT J.
MARRYOTT,
Stranahan,
Estabrook & Co., New York
LIEBMAN, WILLIAM L.
Loewi <fc Co., Milwaukee
LINCOLN, MARY
Investment Bankers Association,
Washington
MARSHALL, Jr., W.
&
'Denotes
fields are
available to institutions and dealers at our
Chicago offices which have
private wire connections to offices
in fifteen principal Canadian cities and
London, England.
direct
These facilities enable
on
us
to execute orders
all Stock Exchanges in
net
Canada
or
at
prices in United States funds if desired.
f*nad y
& Co., Inc.
;
!V>w York
.
Chleag*
affiliated with
'
;
1
Wood, Gundy & Company
*
V
.
Members of
The Toronto Stock Exchange Montreal Stock
Canadian Stock Exchange
Exchange
and
Wood, Gundy & Company
:
1
;
;
Limited
Head Office—36
Toronto
King St. West
1, Canada
Branches in the principal cities of
and in London,
England
Canada
,
Jacquelin, New York
Mr. and Mrs.
Columbus
Bankers
...
LAWRENCE
Trust Company,
New York
MARTIN, GEORGE L.®
international Bank, New York
MASSEY, ARNOLD
Mills, Spence & Co.,
Caldwell, Marshall,
New York
Atlanta
'l
■
Memphis
MITCHELL, JOHN N.®
v
-
t
^
:
Trimble & Mitchell,,
;
i
MITCHELL, ROBIE L.®
Pershing, Shetterly &
Mitchell,
.
MitcheU.
New York
SIDNEY J.®
Farish, Montgomery
Thornton, Mohr &
MOLANDER,
WINSTON
Northwestern National
L.
Bank, Minneapolis
MOLLARD, LOUIS A.
Hirsch & Co., New
York
BROOKS
Francis I. DuPont &
Toronto
MATHEWS, Jr., ROBERT C.
Trust Company of Georgia,
f,
New York
MITCHELL, EARLY F.
First National Bank,
MONROE,
B.®
Co.* Chicago
MIRALIA, DAVID T.®
MOIIR, Jr.,
LEONARD I.®
Harris & Co., Toledo
.
MILLER, Jr., L. GORDON
J. C. Wheat & Co., Richmond
Kuhn, Loeb & Co.,
Digest, New York
£
Chicago
EDWARD W.
Ohio Company,
■
Magnus
Corporation,
LEWIS, MILTON F.
New York and
.£■/ "
S.
MARCUS8EN, P. A.
Investment Dealers'
Carlisle
Our investment services in all
York
Cincinnati
Johnston, Lemon <fc Co., Washington
LEVERING, WALTER B.
LKMKAU,
T^oNTO
The
:
York
MILLER, GLENN R.®
Cruttenden, Podesta &
NORMAN L.
;
-■
MICHELS, IIARRY A.
MILLER,
First Boston Corporation, New
:
MAURICE
New York
Allen & Co., New
Morgan Stanley <& Co., New York
LEMON, JAMES H.*
Cleveland
III,
Hirsch & Co.,
MILLER, CHARLES M.
Mullaney, Wells & Co.,
& Co., Cincinnati
<
>
MANLEY, MILTON A.*
Manley, Bennett & Co., Detroit
MARCKWALD, ANDREW K.*
Discount Corporation, New York
First
Bank, Cleveland
Jr., MAURICE
Hirsch & Co., New York
> '
MAGNUS, WILLIAM
;
Cleveland
>IHnorStock
Central National
Co., Philadelphia
Magnus & Co.,
<
RUSSELL H.
METZNER,
York
MAGNUS,
LEON*
Haupt & Co., New York
LEGROS, EMILE A.*
The
Members
"
:
MACLIN, LUTTRELL
Paine, Webber, Jackson & Curtis,
The
Ira
MONTREAL
New
MACY,
J.
Hutton
New Tor*
Higginson Corporation, New York »
MERRILL, BEARDSLEE B.®
|
Richards, Merrill & Peterson, Spokan# ;;
MERRITT, WILBUR M.
J;
The First Boston Corporation, New Yotk
Lee
MEYER,
New
>
;
1
Corporation, Amm*
Manufacturers Trust Company,
MACKLIN, Jr., GORDON S.
McDonald & Co., Cleveland
LEDYARD,
;
Baltimore
MEKRELL, ROLAND*
.C.,-,,'f' '
MACHOLD, WILLIAM F.
i
Nashville
First
J. W.
Southeastern
MEYER,
Drexel &
LEACH, RALPH F.
5
t
MENDEL, LEO
Equitable Securities Corporation.
)■'
Atlanta
'
Distributor^
CARROLL*
Mead, Miller & Co.,
MEANS,
Young, Weir, Inc., New York
MacFADDEN, DONALD S.
Eastman Dillon, Union Securities & Co.,
York
Securities A OB.,,
■£ '■
.
W.
MEAD,
y
-
McLeod,
E.
York
Boston
MacDONALD, GEORGE C.*
Robinson-Humphrey Company,
Dillon, Union
York
Massachusetts Life Fund
Chicago
New York
,
'ivj:
COLEMAN B.
City Bank. New Vflrt.
?
Chas. W. Scranton & Co., New HavMI
I
MoKIE, STANLEY
The Weil, Roth & Irving Co., ClmilwW
Mcknight, Jr., william g.
■
.
Magazine,
V
-
"
Dallas
MacCULLEY, IRA B.
j
'
P. Morgan & Co., New
"
.
r
McMAHON, EUGENE G.®
J. Bartli & Co., New York
LYONS, Jr., W. L.*
W. L. Lyons & Co., Louisville
Weeks, Chicago
LAWSON, JOHN S.
SAM B.*
Finance
:
/ y
.
E. F. Hutton & Co., Kansas City
LAUN, HAROLD G.®
F. S. Moseley & Co., Chicago
LAWLOR, Jr., WILLIAM J.
JOSEPH
LYONS,
"
*
LATSIIAW, JOHN
■
.
The First National
New
LYNN, EUGENE
• ;
Wertheim & Co., New York
-
cushman®
Pressprich & Co., New
W.
Eastman
51
Bank,
J
McLELLAN, PHILIP F.®
LYNCH, IH, THOMAS
Moore, Leonard & Lynch, Pittsburgh
LATOUR, WALLACE C.®
Mei-rill* Lynch, pierce, Fenner & Smith,
LEE,
J'.-"!1,"'
'./■> •'
Blair & Co., New York
-."i-.
.
New York
McKEON, STEPHEN G.
LYNCH, FRANK
f
„
..
EDWARD T.
Exchange,
McGOVERN, Jr.,
Company, Kansas City
"
■■
■
c
Pittsburg* v,"
Mcelroy,
R.
' .i
*,
Blyth & Co., New York ,v
david b.®
::
J. P. Morgan & Co., New York
,
^
A. C. Allyn & Co., Chicago
VvLYNCH, Jr., CHARLES McK.* v
!
:
Moore, Leonard & Lynch, Pittsburgh
Goodbody & Co., New York
The
>
.
..
Mcgee,
WALTER C.
"I
" "
MCDONNELL, DONALD N.
..i
Lucas, Eisen & Waeckerle, Kansas City
York
vt
t
Stock
American
LUND, ANTHON H.
Amott, Baker & Co., New York
LUNDFELT, CHARLES E.
McCormick & Co., Chica-go
WALLACE
,T
York
McCORMACK, FRANK J.
H. Hentz & Co., New York
'
?
LYKLEMA,
3
Greenville
Co.,
Furman
G.
McCORMICK,
Boston
•!.
Federal Reserve
LAY,
,
LUCAS, Jr., MARK A.*
LARKIN, THOMAS A.*
J.
w
■
.
'
'
•
Singer, Deane & Scribner,
•
.
Commerce Trust
,
Weeks, New York
W.
5
Lubetkin, Regan & Kennedy, New York
.
&
York
:
; ^
•
Sanders & Co., Boston
McCARLEY, J. NATHAN®
•• McCarley & Co., Asheville
McCONNEL, Jr., w. BRUCE®
.
' '■
Chicago
LUBY, JOSEPH M.
Co., New Orleans
LaCROIX, ROGER C.
Paine, Webber, Jackson & Curtis,
Chicago
:
■
LAFFAN, EDWARD
Hornblower
New
Hammill & Co., New Tone
Vance,
:
LABOUISSE, JOHN P.*
Howard, Weil, Labouisse, Friedrlchs &
LARKIN, JOHN J.
Mills, Spe?®*
lim"
Alester
■
>
- •
LUBETKIN, LLOYD E.
.
WALTER®
MARTIN
Hemphill, Noyes & Co., New
LOWELL, Jr., JAMES RUSSELL
?
Paine, Webber, Jackson & Curtis,
r
.
Howard,
y-'-i'C,
McANDREWS,
./'r-
:
LOW, THEODORE V.*
Bear, Stearns & Co., New York
y
;
H. Morton & Co., New York
KRUSE,
•
-
Jr., JOHN S.
&
Oi^-
.
Chicago :
v. McCALL, 'ARTHUR C.
City National Bank, Chicago
Nashville
Co.
;
*v
LORD, Jr., ANDREW J.
Eaton
York:-.-
U
McCANDLESS, JOHN A.*
Milwaukee
Looms, JOHN s.
The Illinois Company,
V. -I
.
.
Co.,
.•
V**
MoALPIN, UI, BENJAMIN B.
Bache & Co., New York
Shearson, Hammill & Co., New York
;
Stein Bros. & Boyce, Baltimore
LANDSTREET, III, BEVERLY W.
Clark, Landstreet & Kirkpatrick,
l»c*
,
•'
..
Corporation, Boston .'
Parker
Shearson,
VICTOR
&
LOKAY, JOHN M.
Kroeze, McLarty & Co., Jackson
LANAHAN, Jr.,
&ince
J.
Loewi
'
Bacon, Whipple & Co., Chicago
JOHN O.*
'
LAID LAW, ROBERT*
Laidlaw & Co., New
t
y
JOSEPH F.»- • '
^ 1
Townseud, Dabeny & Tyson, Boston
%
.•
'-L '-.S-iii "■ >'
Alstyne, Noel & Co., NejKr
MAYNARD,
;
.
LOCKETT,
LOEWI,
<"
-
5
.New York
/.,■)
-
y
Hollywood
v,.,
KRUMM, ROBERT B.®
.
James L. Sheehan
technological advancements
..
'
Childs & Co., Chicago
Allen & Co.,
•
\"
W. E. Hutton &
:
LITTLE, ALDEN H.»
. Investment. Bankers Association,
;
..
The Federal Land Bank, New York
KOENIG, PHILIP F. ;<£
KKELL,
W. Wendell Reuss
will
'
_
\
v->
The
<
: ;;V
The Chase Manhattan Bank, New York '<
v/V/V
;;
:
■.\'i? '..jv"
John s.
linen,
KOERNER, IRVING '
New. York
get materially better before many
months have gone by.
Increased
traffic should increase earnings in
»
■
KROEZE,
Gustave L. Levy
of
GEORGE ;B.®
,
C.
v :•
"
Philadelphia National Bank,
Philadelphia:
:
•
:
•;
.£ !
*
;■ •''New- York
:
York
New
-
Pressprich & Co.,
V:
MAY, J.- DENNY®
~
Salomon Bros. & Hutzler,
Business
isrecovering and probably
Wertheim & Co.*
\'
LINDMAN, RAY H.* : 1: t.;
' .'jO'Melv.euy & Meyers, Los Angeles
A.
:
York
i- ii;
MAXWELL, JOHN M-*
.
The Northern Trust Company,
Lehman Brothers, Chicago
KNAPP, ALFRED S.
.
' "
: ' 1'.
Janney, Dulles & Battles, Philadelphia
■
perennial problem stands a bet¬
ter chance today of being will¬
ingly solved than at: any time in
FREDERICK
Halle & Stieglitz, New York
KNOX, JOHN T.
James H. Carson
a
the rails looks brighter:
W.
New York:
a great deal of progress and
understanding of what has been
!
KLINGENSTEIN,
Charles L. Bergmann
feels
;
Van
ROBERT
First Securities Corporation, Durham
The
•
s
dustry, it nevertheless has also
been rewarding. Your Committee
>. Wachovia Bank & Trust Co.,
LINDBURG, ARTHUR R.
Jr.,
KNOTUE, STANNARD B.
past year has been an £ exceed¬
Alfred J. Ross, Chairman
ingly difficult one; for all those
Dick & Merle-Smith, New
identified with' the railroad in¬
v'
"
San Antonio
MAWDSLEY, LORRIN C.
KING,
:
RAILROAD SECURITIES
wishes, to, say that although : this
& Co.,
Winston-Salem
KNEASS,
Respectfully submitted,
■'I-Summarizing, your Committee
;
Dittmar
MATTON, CHARLES F.®
ultimately
"die beginning of ,
'
WALTER N.
MATHIS,
48
page
crease
These aggregated
the last several decades.
from
still have consolidations
substantially in¬
of
earnings, if the savings
therefrom are permitted to be re¬
ferred stock, par $10.
tained. Obviously the chances of
1 Additional Tail financing
in
retention are excellent, so long
public markets was represented
as the rate of return on property
Philadelphia Plan equipment
investment remains at the low
trust^
is
1%*
(2589)
The Commercial and Financial Chronicle
Co., Lynchburg
Continued
on page
80
The Commercial and Financial Chronicle
74
Continued from page
countries
and, of the organ¬
of the invest¬
ment dealers and banks. I would
fered to holders
36
consideration,
and
to.
was
is
it
where
industry
assist
-
18,1950
Thursday, December
...
(2590)
needed, to bolster farm prices, and
lishing a new Commonwealth Fi- to equalize transportation costs,
nancial
Institution.
It. ,.wae i an- Subsidies,-.as we all- know, carry
like to add here that the dealers
and banks received a commission bounced that existing Trade with -them certain disadvantages:
agreements between several
of However, with the difference in
on their sales and were also re¬
economic prospects;
warded for special services. Al¬ hte Commonwealth c ourctrf e s Provincial
though some dislocation of our would be reviewed. The ( greair Canadians now realize that meashigh-grade bond market resulted value of the system.; of prefereff- ures to help equalize opportunity
tial
tariffs from
the -Common- will be part oL Canada's internal
as an aftermath, the operation can
be classed as most successful.
: ^ wealth viewpoint was re-affirmed, way of living far into the futures
ized
given to the possibility of estab-
efforts
sales
geqerally been net buyers of by the Government for conver¬
sion, these Victory Loan issues
own Government long-term
bonds since shortly after the Sec¬ advanced in price from 2Vz to
points overnight.
Not only
ond World War. This has been a 5 Vz
source
of increasing concern to was there a cash bonus incentive
1 Beeause:of climatic conditions;
both Governments. Reflecting this to convert bonds, but investors
Farttciitor rroMem/s^
Commonwealth Conference
*
h'er: large ' construction
industry, 1"
concern, the Bank of Canada last could increase the interest return
Recognition of someofCanada'sand "because Canada -is. amajor
Another
important- Canadian;
July held a conference of dealers on their investments from 3 to as
particular problems will create a* agricultural country^ seasonal var*
> ^* ••'vV:;t • event this year was the two-week
and bankers of Ottawa and an¬ high as 4%%.
better understanding of- Caqatda's* iations in employment are bound
nounced a plan to increase the
90.4% of the Victory Bonds Commonwealth Economic & Trade
domestic and
not
their
•
•
term of our
Conference held in Montreal. The
issues were offered to
conference
outstanding debt. New available for conversion were con¬
provide for verted. The average term of the
the conversion of approximately bonds
converted
was
extended
'
the Second
World War were free either to
convert their bonds, sell them in
the
issued during
open-market,
or
retain them.
offered attractive terms which
Because of cash bonuses
foreign policy.*? As to be-greater than in maiiy other
said, Canada is a,- countries. ^Special^governmental
were
of-
obstacles in the way of the export
of manufactured goods
countries
developed
country,
tional
rec¬
It
thef 1 o
t i n g: supply
This
country.
a
our
winter season.- A^rmktiA*
;
seasonal Federal
J
grants-in-aid
.
program
ilMUJ
TROIS-RIVIERES
SOREL
—
_
Canada
plan,
to
immigrants of the right
a limit to^he
use more
PAJMPITS
'
-
-
■
"
CAPITAL
account
JUL
Vi5I
CHICOUTIMI
DRUMMONDVILLE
—
be
season*
of iabor demand is one fae-
'
•'
—
fuami
Official
All Countrt.ee
—
holdings
Port-
Interest
—
will
tor that makes it necessary for.
in-
may
All Countries
QUEBEC
.,
of Canada
Montreal
—
program
available this winter; • The
subsidies in various forms ^sort,rbut there is
volve
THE CANADIAN BA1ANCS OF INTERNATIONAL
SHEJRBROOKE
c
^Vorks and, /for ^municipalities,, a
Members: The Investment Dealers*
Association
of t labor
through
carefully, her.
parts of the immigration policy. We still can
in the less prosperous
agreed to continue studies
of ways and means to mobilize the
resources
of the Commonwealth
Hart inc.
a
Savard
was
are
policy,, would like to imthe lot of those who dwell
prove
ognized.
to carry.
necessary
measures
Gove^V^part^f^ ^ aiur
of under¬
was
t
often
her 10; Provinces
extending over about -3;500; mites
vast
from around four years to
All holders of the Victory Loan
Bonds
has been
re-affirmed the com-*
mon objective of freer trade and
All
agreed
to re¬ from the Atlantic
nearly payments.
to^the-^Pacific,
14^2 years. This had the effect of examine anti-dumping legislation
Over the course .of -the ras^ ecrwextending the average term of where it was charged that dumped
tury, economic developij^Ht.hcrpss
or subsidized goods were damag¬
Canada's total national debt from
the country has been by mo. means
about 5 Vz years to about 10 years. ing the economy of other Com¬
uniform.; Some large areas of our
The outstanding success of the monwealth' countries. The impor-v
vast country enjoy a higher;
operation is a reflection of the tance of the need not to place
40% of
$6.4 billion, or more than
Canada's national debt..
t
TORONTO
and
Export.
Adjusted
U)
Dividend
la ports
Adjusted
Trad,
.
U.S.
Capital
and
Current
invest-
sacuri-
aove-
dollars
nent
ties
sent.
at
(3)
N.O.P.
period
Account
Account
Balance
Account
w
Be lanes
(aet)
gold
folio
Travel
Account
balance
(1)
of
Jirect
Current
in
end of
Millions
0.
of
V-fL
Millions of dollars
Savard a Hart
Exchange
LV57
1st
1957
Canadian Stock Exchange
Toronto Stock
2nd
3rd
Exchange
4th
1st
1958
HEAD OFFICE: 230 Notre Dame Street
New York:
2nd
West, Montreal
DRUMMONDVILLE
—,
♦727
♦
♦520
♦766
•114
♦
24
♦
91
♦240
♦
♦
163
-
-303
-105
-
42
-110
♦
-1,292
-
a
-125
-
-1,153
-
66
-1,356
-
69
t>6
29
♦
53
♦
36
♦
129
325
>
12
♦
395
-
-
»
35
♦
♦334
♦137
306
550
-
195
-
♦
212
528
250
-
19
483
-
427
-
♦
5o
1,936.2
1,828.3
1,923.6
1,941.8
96
31
77
1,889.9
57
♦
6a
1,828.3*
85
♦154
♦
50
90
♦263
-42
1,867.7
1,921.4
♦135
-
*
-
-
-
79
97
96
-
46
-
69
69
!
289
-
311
-
■
r
♦
The trade figures have bean adjusted to confona to balanca of payments definitions of the international exchange of commodities.
~
Balance also reflsote all other current transactions.
13)
170 Bay Street
Met Sales (♦) or purchases
purees:
—
.583
♦142
-104
(1)
(2)
6962 Collins Avenue
Toronto:
SHERBROOKE
♦252
-1,551
-444
-226
—
QUEBEC
THETFORD MINES
—
—
(-) by Canadians of Canadian and foreipi securities (trading,
issues and retirements.)
ST. JOHN'S, P. Q.
Canadian Balance
TROIS-RIVIERES
-
Indebtedness
of International
.
* /
'
1945
,
1251
1950
..
1956
1957
...
SAVARD & HART LTD.
v"f
.•
Geneva, Switzerland
V'
and blocked currencies.)
terra commercial indebtedness
1222
SAVARD & HART S. A.
new
Ouarterly Estimates of the Canadian Balsncp of International fhyaents, D.B.S. end Statistical Summary of Bank of Canada.
(exclusive of short
London, England
...
'
■
•
(Foreign Capital invested in Canada)
Canadian Liabilities
A. 5
Canadian Assets
•
United Kingdom
(jflWCGMet
The Borden Commis¬
Report" has
upset the prices of pipe-
;
line
company
Some
,
which
of
have
forth
in
a
been
fetter
to
17.0
18.5
1.9
1.9
1.8
1-9
1.7,
.u
I. F. C., and I. M. F.
13.8
'
3.1
2.3
2.9'
1^
1*6
.5
-
1.4
1.4
-
f
-
1.5
5.9
6.9
7JL
'tf
1
y
>iU»0
7.9
9.6
i
1.3;
13
•
•
5.5
Elmbttitta
2.2
1.6
1 fa?.-tin-
1.9
/
7.6-
•'
11. o-1
»
.
^
i
International Finance Corporation and International tonetsry Fund.
f
Source
t
i
i
3
Dominion Bureau of Statistics.
:
points
have disturbed
vestors
1.7
9.9
.5
(2)
I. B. R. D.,
(2) International Bank for Reconstruction and Developeent,
shores.
the
1.5
(1) Preliminary.
sion's *Trrst
.
2.6
1.2
>?.r.
.11.' J
Assets
Gross
12.6
2.5
0.8
holdings of gold and foreign exchange
United States
Countries,
11.1
2.0
(Canadian Capital invested abroad)
Goverment of Canada
Other
7.1
0.4
7.6
Other
'
1.8
0.3
■/',
Countries,. I, B. R. D. and I. M.'F,
United Kingdom
5.A
2.6
::
United State®
*
•
65 West 44th Street
Miami Beach:
CHICOUTIMI
-1,639
-1,400
-381
-579
-1,328
-1,518
-1,350
-a.
dollars
r>
-1,366
-728
-5,488
1,087
1,277
•'
j"-.
,
-162
-5,565
-
•V' A
,
-161
4,637
4,909
1,102
1,215
1,308
1,284
L956
Members: Montreal Stock
-
| :
in¬
.
'
NATIONAL ACCOUNTS
Quarterly Estimates 1 Seasonally adjusted at
set
^
Annual Bates.
1957
1956
our
II
in
1958
in
11
iv
IV
II
clients,
—
millions of dollars
We wilt be pleased to
forward
a
copy to you.
NATIONAL INCOME AW) GROSS
Wages, salaries
wisener
and
company
f ■
. r
..
Corporate profits before taxes
Lees
LIMITED
Dividends paid to
1
Net income at non-fare
King St. West
I,
G.
N.
1,944
1,972
1,988
1,460
1,432
2,292
24,484
1,564
1,908
1,996
1,940
-256
-344
-172
22,220
22,752
23,428
23,816
23,696
23,806
3,480
3,604
3,376
3,692
3,664
3,868
3,660
3,780
3,356
3,628
3,464
3,720
-112
-36
36
160
28
4
28,952
29,808
30,644
31,324
31,252
31,312
27,536
28,348
29,216
29,756
30,220
INCOME AT FACTOR CUT.
etc....
less accruad net
•
,
Dominion Bureau of
-
•
-268
Statistics.
24,064
23,768
23,912
3,800
3,760
3,856
3,tU
^3,720
3,788
3,740
3,7«F
160
148
172
22»
31,748
31^60
31,684
32,248
30,276 " 30,816
30,588
30,636
31.C8&
,
,
g
income of farm operators.
^
i
2,240
1,416
►
P.
Affiliate: MACKELLAR, WISBvlER LIMITED
Members: The Toronto Stock Exchange.
1,952
16,212
496
2,856
V 448,.
.1,904
<j. H. p. IT nm*F PRICES
*
15,932
15,284
452
2,748
V...
......
Capital consumption allowances,
.
..
15,004
424
2,824
unincorporated business..*.
Residual error of estimate
•
TBJ=X> 02-2461
14,536
372
2,780
.
income
Indirect taxes less subsidies
CANADA
v
14,052
3
NET NATIONAL
>
non-residents
Inventory valuation adjustment
Association of Canada
TORONTO
;
and dividends......
Rent, interest and miscellaneous investment
Accrued net income of fare operators.
Members of the investment Dealers'
73
NATIONAL PRODUCT
end supplementary labour income...
Military pay and allowance*
.
Volume
Number 5804
188
rate at which
absorb
we can
4/.; .•/...*•,•/
comers.
.
.
The Commercial and Financial Chronicle
.
for
new-
yp>
■
why
Need Oil and Gas Markets
we
Another
When metal prices and demand * which is
high, times are' of course good
the mining regions and the re¬
are
'
;
and
have anti-dumping legislation.
impact of u.
-
industries
our
Canadians derive many advan¬
tages/ from \living
side-by-Side
with, a very prosperous neighbor,
but
industries
our
under ~
are
irt
is
verse
when
true
that of
-
the
size
of
that
of
United States in terms of G
Most
-
changes
is
of you know
about
that
policy
vitally
can
in
your
influence
much
ticular
:
found.
be
:
/'
V
States
.
-
as
markets.
/A':
Greenshields & Co Inc
,
products
country
your
Dominion Securities
Corporation,
Toronto
New York.
•.
but
:•
Vice-chairman
F. B.
v
>
:
v
Ashplant & Co., New York
Eric S. Morse, Vice-Chairman
W. C. Pitfield &
Company,
Limited, Montreal
BOSTO N, Mass.—Dixon
of Hornblower & W
*
White
aver¬
,
elected President of the Bos¬
ton Investment Club at the ahniiil
waS
meeting
r
combined amount
4y
^w-ck: jIP* (Mill\9v*
/••/."•Ay- /• ■;/.:
;/yv
■/•'
-
-
*
/V\-//,•;.y■;
'
Converted"/
Victory Loan Bonds
y' *
the
;
*
Outstanding
■•■•■■••'..
/
JalT U/58.
L.
(1959)
y .yhv. L.:
I V
: ™ L-.
of
some
Product.
the
Converted
-,'v
Outstanding
1A/58.
-
,
.
••' 932
947 )
.
15
;
Average
(i96o)yiyi,iy|i^e 1,1181 £
Tern
1.25A
8th v.
L.
k
■>'
*
D. K. Baldwin
Nesbitt, Thomson and Company,
Limited, Montreal
Ca¬
con¬
will be
,
Winnipeg
Andrew S. Beaubien
solved.
L.
closing I would like to make
two comments.
1957-58
now
First,
to
seem
we
recession
be
hope that
which
coming
I
Pxdvate
L.y (1963) .;
9th V.
)
U1
</.
we are
of them
Sons,
Harvard Club.
Joseph
M.
Hurley, Jr., of
Harris,^Upham
216
and Public
Beaubien & Co. Limited,
(1966)
T.
Chairman
the
Montreal
in Canada
Investment
Dixon
Sector
;
1958
t
Conversion Loan Bonds Issued
y%
t.
1957 to
Original Revised
1958
Estimate Estimate Revised
y(2)
-
11.
;
1958
Original
to 1958
Revised
$ mill.
y
1961
.:;"«( 18.UJ6
'y
1,053
Business
per
cent change
Capital*(excluding Housing):
1965
21.8156
1972
i
Average(
Term
( 24.38$
14.A - •(
1,415
( 35.67$
2,070
y\
'
i
Forest and mineral
1,265
.
1983
...
•:
.
-:k
(1)
years.
♦*''
a
■
Preliminary recorded figures,
services
624
1,535
1,480
695
-
3.3
+1.0
on
1,020
•t
2.8
-to.3
1,114
9.9
-1.1
To Admit Partner
5,022
4,933
-12.8
-1.8
-42.1
-4.9
9.4
-3.6
-
Transportation, storage and
communication.
5,803
992
Sub-total
-
Reed, Lear & Co., members of
the
New
will
admit Arthur W.
Jr.,
subject to minor revisions.
Housing
issues based
1,635
1,768
*24.9
+8.1
Calculations of average term and
Spence & Co. Limited.
t
Stock
Exchange,
Sesselberg,
New York
Stock
444
527
504
+13.5
-4.4
Jan. 1.
1,204
1,337
1,320
+
9.6
-1.3
3,063
3,498
3,592
+17.3
+2.7
8,721
8,521
8,525
-
Government
reports from authorized agents during the campaign.
on completion of final accounting
services
departments and
waterworks
Subject to revision
by issuing agents.
York
member of the
Exchange, to partnership ok
Mr. Sesselberg will make
headquarters at the firm's
1,415
Sub-total...
new
year on
Reed, Lear ft Go.
1,017
1,126
719
Other
Allocation of the total among the four
a
the Executive Committee.
656
TOTAL CAPITAL EXPENDITURES...
(2)
i
Anthony
& R. L. Day, Publicity Chairman.
Lowell Warren and Neil S. At¬
Trade, finance and commercial
V ■*
100.00%
the
ensuing year were Richard E.
Murray of May & Gannon, Treas¬
urer; George L. Johnston, Gold¬
man, Sachs, Secretary ; and Richard
5,658
Fuel and power
Institutional
'
-i
for
elected
1,077
Housing and Social Capital:
:
officers
1,236
......
"
TOTAL
Note
security affairs.
1,63^
products
r
aH
assistr
Eisenhower for
kinson will continue for
.
3i%
special
H. Hutchinson of Tucker
'
of
Col¬
Old
ony Trust Co.
and former
White
President
Other
1958
9.6%
to
national
'
1957
•y A
B.
«.
Capital Expenditures
'
Cutlet,
Limited-
613
% of Total
Rob¬
was
ert
Collier, Norris & Quinlan
1957 and Estimates for 1958
273
TOTAL
-
at the meet¬
ing
ant
•
the
c e-
Guest speak¬
er
Wm. T. K. Collier
of
is
Vi
President.
Montreal
we
out
G.
Co.
&
iiew
.
^
the
,
These
problems
nadians live with but
In
5th V.
National
fident that most
'
James Richardson &
22% of the value of the Canadian
: y y- /■ J.
Gross
1.
equal to about
was
on
Dec. 9 at the
Ralph D. Baker
trade
:
•
Irving H. Campbell
*
Secretary-Treasurer
aged almost one and a half times
Bell, Gouinlock & Company,
our exports to the
United States
Limited, Toronto
market and the
this
v
George P. Rutherford
Mills, Spence & Co. Limited,
would like to see the trade gap
close to mote reasonable propor¬
tions. In 1956 and 1957 Canadian
of
*
Montreal
McLeod, Young, Weir
Incorporated, New York
Arnold B. Massey, Chairman
we
,
Peter Kilburn
Frederick B. Ash plant,
manufactured
\
'P.
Wood, Gundy & Co., Inc.,
New York
/-/
y:y y-, y).-y;'
•
We depend on the United States
our best market for both
raw
and
GAI1ADA COWERS- v A ; y
.
Respectfully submitted,
relief
could find its way to United
imports from
■
Some
Incorporated,
New York y
Edward S. Johnston
George C. MacDonald
CANADIAN COMMITTEE
be expected within the next
our oil and
gas
Canadian
-
can
Andrew G: Curry
A. E. Ames & Co.
•,
yet to be done before
may
country
'
areas.
good for Canada is good for the
-United States.
l'ew years if more of
the impact is concentrated in par¬
protection
some
country, but
our
ucts
haps of even greater importance,
.'necessary to have
has
We
of
be
prosperity. It looks that way at the
present time. Second, with mu¬
tual respect, and in more ways
than is generally realized, what is
natural
have both oil
lines
across
the
will
countries to go on to greater
our
adequate outlets for these prod¬
with
readily understand why/ it; is
•; can
oil and
bur
greater part
which
you
for
in ; this field.
and
gas
pile
jncome from her mines, and per¬
'f<3f.,tbe
We trust tliaf
m etals
respect to
its population
One-tenth
'United States.
price
in
-the
N. P.
.
in
Changes
ensue.
tcenth
good deal of
time is
a
present
falteringly,
looked back upon as nothing more
than a breather, that enabled both
Great strides have been made
gas.
.
tion that Canada's economy over-. of ;.the
all
is
approximately, i pnerfour—
the
at
somewhat
difficulty
finding reliable and larger
substantial" markets
price recessions occur, as has hap¬
pened in the last two years. The
purchase of stock-piling by your
a
Canadian
.
receiving
attention
competitive disadvantage lii many
instances owing to the larger marGovernment and the realese from
kets enjoyed by their American,
stock-piling can materially affect
counterparts. To put this problem
.in -some perspective, I will men¬ the. profits of our mines because
;
75
percentage distribution by Mills,
^
Source
-
Department of Trade and Commerce, Ottawa.
2.2
his
New York
office, 141 Broadway^
L. F. Rothschild ft Go. |
To Admit Two to Firm
L.
F.
Rothschild & Co., J20
Broadway, New York City, mem¬
bers
of the New York Stock Ex¬
change,
Viale
L. G.
»*
-
..
y
m
BEAU BRAN
;
/
,
Exchange and Canadian Stock Exchange
Telephone: Victor 2-2171
221 Notre Dame Street West,
maiiddam
A-jj
<
.
-
BRUSSELS
■
x
^
Ottawa
•
Trois-Rivieres
•
St.
Hyacinthe
•
Shawinigan
•
Sherbrooke
i *
!
.
*
admit
Chester W.
s
partnership.
To Be Formed in N. Y.
Koerner,/ Gordon
&
Company,
members of the New York Stock
Exchange, will be formed
of
as
way,
New
York
City.
Partners
will be Emanuel Koerner, Barott
J. Gordon, members of the Ex*
change, John R. Atwell, and Pey¬
ton Kulman.
Mr. Koerner is a
partner in Koerner & Co. which
? I
v
to
will
1
Baer and
Jan. 1 with offices at 120 Broad¬
MONTREAL I
r
PARIS
.
-
Quebec
H.
Koerner, Gordon & Co.
-
Members Montreal Stock
Cable Address:
BEAUBIEN CO.
"*'
Jan.
on
Richard
■
f ?
BEAUBIEN S CO. LIMITED
L G
BANQUE L. G, BEAUBIEN
will be dissolved Dec. 31.
;
York Securities Formed
Members
Inyestriient Dealers' Association
f '
-
.
I :
I,
rue
($«) FRANCE
221 Notre Dame Street West,
MONTREAL
Branch at St Pierre
TeTephone i yfetor 2-2171
t;
j
offices
at 80
Wall
Street, New York City to engage
in a securities business. Charles
principal of the
firm.
Jesup & Lament Partners !
Jeeup & Lament, 26 Broadway,
(Territory of the islands of St. Pierre and Miquelon)
New York City, members of Use
New York Stock Exchange,^ e*
Jan.
•
|
Securities, Inc. has been
F, Herbertz is a
Cable Address: BEAUBANK
Cable Address; BIENCHAUD
? 1.
York
formed with
of Canada
PARIS,
f:
Richepance
1
wiR admit Laurence
and Alexander
Johnson
Laughlin to partnership.
3,;
tC
76
The Commercial and Financial Chronicle
(2592)
This is the
Continued from first page
spot where the in¬
coming President has his captive
audience at a decided disadvantage
for the first—maybe the only time.
The Investment Bankers
I
Association of America Holds
novel
47th Annual Convention
In
to
President
1BA
as
—
his
Executive
Partner,
*
1943.
.•
He
Upon receiving his BA
degree
University of Chicago
in 1925, Mr. Kerr entered the se¬
curities business with Kissell, Kinnicutt Co., and has been in invest¬
ment banking ever since. In 1927
he joined his present firm and
The
from
became
Partner
a
three
years
later.
sion
has
Kerr
IB A
affairs
and
the
at
been
both
national
Chairman
of
active
level.
the
in
the regional
He
Central
was
is
I
tory
are
Member of
Stock
Exchange,
American
the
York, and was President of
the Bond Club of Chicago in 1956.
Mr.
is
Kerr
Weco
Director
a
and
Co.,
a
Trustee of
Washington and Jane Smith Home.
include:
The At¬
Beverly
Country
Memberships
Club
and
Club, both of Chicago; the Bond
Club of
ers'
Chicago, the Bond Trad¬
of
Club
and
Chicago
the
States
Municipal Bond Club of Chicago;
Group of the IBA, 1953-1954, and
Augusta National Golf Club; the
a
Vice-President of
the
Associa¬
(Committees
on
which he served the national
or¬
tion,
1957-1958.
ganization include:
Convention
Golf
Club, New York; and Al¬
pha Delta Phi.
Golf
has
—he
Committee,
primary
interest
only athletic
been
low
a
handicap
player for many years.
Stock Exchange Relations
Committee,
Mr.
1950-1953.
is
Kerr
the
classmate,
versity
Uni¬
a
former
1
Group Chairmen's Committee,
1953-1954;
Laura
Chairman,
and four
Savings Bonds Committee,
Kerrs
reside
children
grandchildren.
The
.V ■':
prise industrial management.
creative forces
New
oiir
i
r
All it takes is the doing; First,>we
must
victim
are
and
in
hard
work
at
I
aspire to clear the atmosphere a
What I am about to say is
bit.
others
some
—
irritating
largely
concern
belief that prob¬
are
basic,
on my
differ
lems
entire
our
some
—
citizenry,
others
only individual groups—
difficult, others only
appear so. Those I am to mention
are
in my judgment —*• basic,
significant to all, and soluble.
In keeping with what I know
to be your hopes, I shall strive
for simplicity and brevity.
You
may conclude I have failed."
are
—
we
1
domestic
Three
out.
First,
all
that
and
problems stand
predominant
so
tasks
other
loan
the
most
literal
is
It
into
fade
—this
as
leaves
the
openly
over
of
the
in the
economic
States
peaceful
on
production.
are
in
no
secret
they
—
that
we
per
cannot
sume
for if
the
we
meet.
We
Russians
did and
cannot
were
rates
I
can
terest of every
of what
were
it would
reduced
by
be if
the
levels
Federal
our
tion Committee.
Taxa¬
to
Even if there
the
reach
.
family in the land
tax has proved to be
a mighty
expensive luxury for other classes
of taxpayers. Capital must not be
put in
deep freeze—it must be
a
enabled to flow from
one
medium
relative
insignificance, is the pre¬
vention of a shooting war. With¬
out
peace
we
have
nothing.
Modern destructive devices—their
intensifying
ferocity
DAWSON, HANNAFORD LIMITED
each
the alternative
make
too
day—
hideous
Collier Norris
to look upon.
Secondly, our economic develop¬
ment—our ability to produce new
things—old things—in larger and
Underwriters and Distributors
of Canadian Securities
lenged
manner
Montreal
Toronto
Russia
Montreal, Toronto and Canadian
MONTREAL
CANADIAN
STOCK
EXCHANGE
EXCHANGE
STOCK
her
and
newly found scientific know-how
to annihilate
us
in world markets.
Thirdly, our own population is
growing dramatically. The charts
point
in
only
one
direction.
Shortly, 200,000,000 persons will
be scrambling the ladder of am¬
bition
to
a
higher and higher
standard of living.
Stock Exchanges
DAWSON, HANNAFORD
Quintan
—
materials
of
resources
DAWSON HANNAFORD & CO. LTD,
Members
(i
MEMBERS
is being chal¬
in
a
cold,
calculated
by a zealous Soviet Union.
is marshalling
her vast
volume
larger
INC.
The
37 Wall Street
denominators
common
these
#
Quinlan
Limited
MEMBERS
Investment
Dealers'
Association
of Canada
,
..
in
are
people and
People working with and
for money.
Money working for
people.
The cost of peace in terms of
man-hours and money is almost
NEW YORK 5, N. Y.
Collier Norris
The
Toronto
Montreal
problems
money.
320 Bay
507 Place d'Armes
Victor 5-2201
Street
EMpire 8-2984
-
incalculable.
To
the
and
match
cold
Russia
beat
in
war—industry must ex¬
pand and improve at rates here¬
tofore unwitnessed. The long-term
growth rate of 3% won't do it—
must 'think of 5% minimum.
Harris & Partners Limited
we
ROYAL
SECURITIES
CORPORATION
Limited
To achieve this will take
bination
Business Established
creative
1903
the
of
com¬
men
of
cooperating
intellectual level
55
507 Place d'Armes
Yon&e Street
TORONTO
MONTREAL
at
of
of
dollars
highest
and
billions
tens
women—and
Underwriters and Distributors
Canadian
of millions
a
human direction.
The
Government, Municipal
the
Public Utility and Industrial Issues
of
money to furnish
provide the homes
employment opportunities
need
means
—the
to
Investment Securities
—the rewards for endeavor—to ha
sought
by young adults in the
immediately ahead, could
overwhelming.
The
people are and will be
available, but where
does
the
money come from? Certainly not
from
the
government,
for the
years
ROYAL
SECURITIES
Members:
Montreal Stock Exchange — Canadian Stock
Exchange
The Toronto Stock
Exchange
government has no money except
that provided to it by the people.
>
244 St. James Street
Toronto
4Calgary
Halifax
Edmonton
Saint John
Vancouver
West, Montreal 1, Canada
<
The money comes from the people
who
have- earned
it
and
paid
taxes
Quebec
Victoria
Ottawa
Hamilton
Charlottetown
¥
be
COMPANY
Winniuee
St. John's, Nfld.
—
who
have
saved
it
to get more money
ings
to
work
to
Affiliate
Harris & Partners Inc.
15 BROAD STREET,
NEW YORK
and
invested. The only way for people
is to put sav¬
beget money.
was
justification to punish the success
of venture capital, this particular
consequences would be calamitous.
is that it is absolutely imperative
in the national interest—in the in¬
amount
suggested
as¬
wrong,
I carry the conviction
the
fraction
a
incapable
are
saving.
of money col¬
lected under present rates is only
surpassing
by
us
de¬
posed by the punitive and imprac¬
tical
provisions of the capital
gains tax.
—
ruin
to
disillusionment
This
Second, we must release equity
capital from its sterile refuge im¬
capita production—by
flooding markets, perhaps even
our own, with their goods at prices
us
that maturing United
Savings Bonds will buy
the virtues of
the field
lastingly."
There it is
have
stroys the faith of the worker in
relentless in this objective—ever¬
intend
neces¬
we
substantially less in goods than
had planned when we bought
them.
front
We
yet—but
we
battleground. Russia has
declared — "We will win
the United States
road
reached the dismal experience of
finding
race
keep the dream
I hope we are not that far
down the
v
probable the
to
larger doses.become
sary.
the
of
sense
V
■
and
alive
fighting for survival
are
The only conclusion
Problems
Domestic
-save
is£a\waitingdisf
Inflation
tablished
objectives.
We
all in this maelstrom together
he was sufficiently even that neither side
I am the will dare tee off against the other
much information."
of too
to
tracks.
asked how
when
.people
t^
it'-feihf
dustry—by halting infltatjen in^its
nice art of destruction will remain
—
encourage
money—in turn
common
Sputnik went aloft.
Three
Address follows:
toward
Perhaps, however, some of us
resemble that famous horse-player
who
is dl&ar and concise. V.
The
word.
doing—replied, "rotten.
answer
farmers—labor
are
investors—all
and
William D. Kerr
President's
The text of. Mr. Kerr's inaugural
Committee, 1954-1957.
The
ease—just like dope; 'Early. Jrijections produce rosy X illusions
|'of
—management—research—science prosperity—soon the habit ^ es¬
Probably the
only happen¬
ing of recent years for which \tfe
were totally unprepared was when
Inaugural Address
Governor, 1954-1957.
Finance
The
in Chicago and have four
1.954-1957.
1953-1954.
Nowak.
,
the
even
front—be
war
on
government—printed money, that
is—and that wouldn't last long
enough to get the job done.
: ;
}
point that
the
to
ability, to provide
literally
escapes
be
free enterprise terms.
The alternative is money from the
our econ¬
nothing
some
married to
available
statistics —:
and
predicated
Kerr's
Mr.
is
hobby and
1946-1950.
r
Lunch
offense on the cold
ously threatened.
/ When I say creative forces I am
not referring to the few who com¬
theories
so
our
productive capacity—
employment capabilities—our
our
find ourselves far
we
measures
our
attention.
Products
Plate"
"Home
From
minimum capital requirements of
these formidable problems is seri¬
roughly
financial affairs
our
pand
Far
being frustrated by unen¬
lightened legislative and regula¬
choked with
Associate
an
rearranged that the money to ex¬
omy are
you.
we
tho
'
•
New
tic
Mr.
:..
Committee,
1957-1958.
—that
,
from home plate.
The creative forces of
students—
Jay N. Whipple, held the office in
Money must be allowed to work
And here
profes¬
our
Thursday, December 18, 1958
for the people.
despair of
being able to
present
any¬
thing new or
...
Tel. Wllitehall 4-0731
-
'"W
.1
•-
<<
'
i
«
..iv
Volume
188
another
to
Number 5804
required
as
—
minimum of interference.
who
:
.
.
The Commercial and financial Chronicle
.
This question of organization Is
intriguing. I visited our Washing¬
with a
ton
looks, perceives that the abil-
ity/of • all governments—national
local—to
and
;
t
»
obtain
reasonable
rates for their borrowings is seriously hampered by the circumstances that funds frozen in high
priced stocks are able to transfer
into bonds only at unacceptable
penalties. This is a tragedy for all
Thirdly, we must modernize the
depreciation deduction schedules
for industry to enable it to meet
••
the accelerated obsolescence which
built
case—here
the
.
;•
5
interests
of
individual
prepared
was
hood
in
to
which
we
live there
are
doctors, 1 a w y e r s, storekeepers,
teachers, small businessmen of all
we
The
recent
elections
proved
conclusively that highly organized
contrast.
report of the Educational
Committee this year will take the
form
Bulletin.
IBA Educa-
The
Bulletin-4e
long for reading here/
confine my remarks
too
I
and
the- printed
of
tional
much
will
to a brief mention of several'Oflt
the many activities, with the hope
you
the entire Bulletin.
The
Announces Now IBA
Educational
.
this
Film'
by
well
called
known
be
may
educational
committee
groups
interviewed
were
exposed
to
the
of
j
the
fulfills
...
to
thousand
some
Commit¬
tee's opinion,
nent issues,
A booklet was prepared for
party
workers in which the answers
;
Richest
Man in Baby¬
lon" which, in
all perti¬
on
film
new
"The
and
persuasion
fundamental logic
the
to
availability of
a
its
primary func¬
tion creating a
desire on the
frequently
part
and
of
tions:.''
i
.
O.
curities.
rewards
in¬
these
-
ot
activities
be
to
appear
.
.;
..
The
.•.■/.,/
education
of
our
members, and
own
Second:
The
education
the
of
general public.
important activity of the
general classification is the
of Investment Banking
One
/
first
Institute
sponsored by IBA in cooperation
the Wharton School of the
with
their
ized and ineffective.
Annual
Session of this Executive
Development Program were again
capacity-plus, with 264 regis¬
at
in attendance.
trants
An innovation announced at the
was
of
submission
a
an
request for the
on some"*
essay
to
purchase
funds
vestments.
in
productive in¬
The report also urged
science
subject
classes
produced and are available at the
Registration
tions
were
Desk. These selec¬
easy—far from it.
top
not
Wharton School selected eight
a
well
reply
to
known
the
in¬
We—individual
investment
bankers—must suit-up
Midland Securities
members:
©
for a sec¬
profession. We must become
expert,- dynamic political factors
corpn. limited
in
our own
see
to
it
tomers, '
join us./
Municipal
We
ball
Corporation Securities
home towns.
We must
Burns Bros.
start the
toward
biggest
creative
snow¬
I know
very
The Midland Company
economic
quite
Toronto Stock Exchange
iood
Investment Securities
a
Congressmen!
Canadian and Domestic
Investment Abroad
The
IBA Foreign
Investment
Committee, headed by Joseph T.
Johnson, The Milwaukee Com¬
all Exchanges
on
pany, Milwaukee, presented the
following resolution and it was
adopted by the Board of Gov¬
Toronto, Ontario: 50 King Street West
London, Ontario: Huron & Erie Building
Sanlt Ste. Marie, Ontario: 116 March Street
Montreal, Que.: 215 St. James Street West
St Thomas, Ontario: 354 Talbot Street
to
Affiliated with:
Burns Bros. &
Denton, Ltd.
The
has
interest
MacDougall & MacDougall, Montreal
Distributors
Dealers
ington
Investment
noted
recent
with
efforts
directed
in
toward
velopment of
a
practical
program
for
encouraging
Members: The Toronto Stock
Treasury Bills
.
Provincial and Municipal Debentures
Com¬
Exchange
Exchange
Wash¬
the
•
Montreal
•
Ottawa
•
Winnipeg
•
*4'
de¬
7
lax and
of
Walwyn, Stodgell & Co.
other
more
Limited
favor¬
....
for investment
of private cap¬
ital
in
coun¬
Joseph
T.
Head Office
;
MONTREAL
•
WINDSOR
ST. CATHARINES
•
efforts.
66 Yonge Street Toronto, Canada
•
•
;
HALIFAX
speakers at the convention,
newly elected President
William D. Kerr, were retiring
President William C. Jackson, Jr.,
of the First Southwest Company,
The
Co., Ltd., London, Eng.
Direct private wire with Goldman, Sache A Co., New York
STOCK
ORDERS EXECUTED
44 KING STREET WEST,
besides
-
Dallas,
Texas;
Hon.
Edward M.
Gadsby, Chjpirmari, SecurPtes and
Exchange
Stock Exchange
The Investment Dealers' Association
Speakers at the Convention
HAMILTON
U.S. Subsidiary: Eqtusee Canada Inc.
Associated Company: Kleinwort, Sons A
The Winnipeg
Johnson
of the
free world. The IBA looks with
favor upon these activities and is
ready to assist the departments
and
agencies or the legislative
branch of the
Federal Govern¬
ment involved in furthering these
of The Toronto Stock Exchange
Members:
Toronto Stock
tries
Member
k•
-
able condition
EQUITABLE BROKERS LIMITED
s
Hamilton
include
discussion
a
Member of The Investment Dealers* Association of Canada
.r
-
Toronto
for
bringing about
EQUITABLE SECURITIES CANADA LIMITED
&
much
incentives
Corporate Bonds and Shares
•
of private
funds abroad.
These
Government of Canada Bonds
h/
Toronto, Canada
the investment
Underwriters
>i:|
-
Canadian Stock
Foreign
mittee
Postman Dillon, Union Securities & Co., New York and
;
Burns Bros. & Company, Ltd.
Toronto, Canada
ernors:
Kitchener, Ontario: 2 Queen Street North
Private wires
I
seen.
few men in this
who
would
make
room
damned
ever
LIMITED
Montreal Stock Exchange
Canadian Stock Exchange
Stock orders executed
1
Underwriters—Distributors—Dealers
Urge More Private
9:
Denton, Inc.
■
practices the world has
members:
&
37 W.ll Street, New York 5. N. Y.
directly that our cus¬
friends,
and
neighbors
can
!1
!
ond
The Investment Dealers* Association of Canada
Canadian Government,
and
>
University of Pennsylvania. Reg¬
istrations last Spring at the Eighth
covered in one of the
during the week. These
investment se¬ essays were read by arrangement
with the Wharton faculty.
The movie stresses the
The winning papers for each ot
inherent in saving part
the three classes have been re¬
Shepard
of one's earnings and the placing
of
First:
1958 Session
more
more
dividuals
Robert
I
encouraged to
divided into two broad classifica¬
atten¬
tion
•
i
to fuse them into a pul¬ that all of the various segments
papers from each class and sub¬
sating force to lead free peoples of the investment industry join mitted these to Erwin
Boehmler*
sistent letter of a businessman— to the highest levels of self ex¬
in a general coordinated nation¬ our Educational Director, and to
He
says,
"What sense does it pression ever attained.
Continued on page 78
wide educational program.
make for those who want a prac¬
We simply must not let
this
tical program of tax reform to do
destiny be washed down the drain
into a barren social welfare statei
readily cause
bidding
when the opposition is unorgan¬
do
is
Here
Congressman's
pressure groups can
to
^
The
Education Committee
this
voters
report, Chairman Shepard
as follows:
that
be found above.]
-and accomplished writers—then
distributed
to
the
public
•
the
address
In the
remarked
read
which may
groups,
asked questions were given.
suspect are un¬ types — plus many of the labor
fight for survival force—who are intelligent, patri¬ All effort was aimed at gaining;
and the means to win it. Ameri¬ otic, energetic — keenly eager to
the public eye and then engag¬
cans are industrious and thoughtmake America strong and capable
ing the public mind continu¬
ful.
There is no conclusive evi- of maintaining her independence.
ously. In this — the selection
of
dence, however, that they perceive All they need is comprehension
personable, articulate and
to even a small degree that two of the problem—then leadership
upstanding candidates was par¬
amount.
powerful ideologies are engaged to achieve organization.
in mortal combat and that they,
v
What will counter organization
Well—that's it. Here in America
the people, are in it to the finish do as
against our present state? —rich beyond description in man¬
whether they like it or not.
Well—let me give you a bit of power — raw materials — and the
of
Kerr's
to
reason
aware
.
suc¬
counter organiza¬
tions we should be heartily en¬
couraged, for the ingredients are
right at hand. In every neighbor¬
By people, I mean members of
own
communities, including,
have
the
Looking
our
particularly, those whom
President
or¬
byganization. Senator Goldwater
every means possible.
proved this in Arizona last month. The research staffs of opposition
muster.
most
and
government in Washington.
Organization is combatted
cessfully only with ^ounter
is
our challenge.
We must go to the
people and make them understand
these problems.
By we, I mean you and I right
here in this room, together with
every associate and friend we can
j-
between themselves
ters
Must Educate People
have
success
in
some
—
In reporting on behalf of the
reviewed
estimates
of
public
Education Committee, Chairman
sighted in leaving no chance that
opinion as revealed by trained
distance could jeopardize positive
Robert O. Shepard, of Prescott,
researchers,
understanding on legislative mat¬ Appealing literature, keyed to the
Shepard & Co., Inc., Cleveland,
elaboration.
I
housed
—
'."V '•'
:
men
our
union labor leaders have been far
research has. brought to physical
plant and equipment. This need
is too well recognized to call for
:
recently and from
Macmillan's
taxpayers.
M
office
palatial story in recent England. His stal¬
buildings of their own — within warts, faced with seemingly over¬
easy walking distance of the Tri¬ whelming odds, took positive ac¬
angle. As there is little organized tion as follows:
labor force in
Washington you Weekend
conferences
of
local
come
to the realization
that
leaders debated party issues and
are
'
;
nothing to elect sound Congress¬ Exchange
and then spend millions try¬ James M.
Commission;
General
Gavin, Vice-President,
ing to sell that tax program to a Arthur D. Little, Inc.; and J. Erik
windows we look down Pennsyl¬ Congress
already committed to Jonsson, Chairman of the Board,
vania Avenue toward the White the contrary?
The horse has al¬ Texas Instruments, Inc.
House, the Treasury, the Com¬ ready been stolen—the barn, too!"
[These addresses in full text
merce
Building.
As I learned
and
Committee Reports are
-England's Example
more
of the composition of the
given in this issue starting on
area I was
Now look at a page from Prime
deeply impressed by
page
18
with exception of
the fact that some 54 labor unions Minister
Anyone
77
)
of Canada
ON ALL EXCHANGES
TORONTO, ONTARIO
EMptre 1-1131
CANADA BUILDING,
238 PORTAGE AVENUE,
WINDSOR, ONTARIO
WINNIPEG, MANITOBA
Stl
The Commercial and Financial Chronicle
(2594)
,78
Continued from page
was proposed with an
entirely different conception.
Babylon"]
77
The Investment Bankers
"The Richest Man in
educational
Our
job with thev
public, in my opinion, should be
pointed to the eventual desire to
purchase investment securities by
more and more citizens.
Basically
Association of America Holds
47th Annual Convention
then,
there is
real need for a
In the past,
a
film to create desire.
much stress has been laid
how
on
recommendations. movie and then at its conclusion we operate, the functions of in¬
make
another
recommendation. vestment banking and how .the
These 24 papers were all good and
exchanges work.
This' is
I predict that many of the men First, let me say that a movie is stock
There important, but it does not neces¬
who submitted these papers will certainly not a new idea.
have been some very good ones sarily create the desire to pur¬
be taking top positions in other
'
produced by various associations chase securities.
IBA activities in the near future.
in the business and by many indi¬
Our great merchandising cor¬
We are fortunate in having the
vidual
firms.
The IBA movie, porations have learned this truth
three winners here at the Con¬
their
with
vention this morning.
And now we come
while Joe Johnson was Chairman
to the filial
part of my assignment/ This con¬
cerns the education of the general
to
give some
real thought
explaining how sound waves
approach the television set, are
tee
routed
Education Commit¬
and made available to mem¬
bers while he was President
have
these
of
been viewed
by
a
might improve our wide audience and have undoubt¬
for the education of the edly created business and, through
clarification, better public rela¬
genera! public. As the result of
tions for our industry.
I have
this brainstorming, we now have
how
to
we
program
a
%
new
movie and
a
I
praise
but
recommenda¬ nothing
for
these
movies.
tion.
would like
in
of the Public
about
six years ago, is still going strong
public.
and is doing an effective job. All
Your Education Committee has
tried
,
produced and, for example, spend little time
U.S.A.",
[Ed. Note: "Opportunity
item on this page.]
See
Babylon"
Desire
Job—Create
Our
me
Thursday, December 18,1958
...
The film
to show you this
["The Richest Man in
through the condenser
up
and all the other technical gadgets
that
create
the
they
have
done
pictures.: ! .What
is create desire
:
stressing tonal qualities
reception rather than
how the set operates.
; ;
Obviously, there must be an ac¬
through
and
better
.
.
cumulation
of
funds
before
one
if money is not
inherited
the
only way in this
world to get it is to save it.
The
task of saving part of one's earn¬
ings appears to be a dull thing—
full of painful self-sacrifice; But
invest,
can
and
it need not
be
so
if properly ap¬
proached and glamorized by em¬
SERVICE TO
TWENTY-SIX
YEARS OF
phasizing the end-result.
* *
This was true—way back in the
18th century when the wise old
MICHIGAN INVESTORS
German
McDONALD-MOORE & CO.
Municipal and Corporate Securities
philosopher, Goethe, said:
"Riches
of
Most"
DETROIT
WOodward 3-9565
EXCHANGE
DETROIT STOCK
MEMBERS
MIDWEST STOCK EXCHANGE
GRAND
FLINT
E.
in
'
the
Man
finest job of creating a desire to
save that could possibly be imag¬
ined.
The
booklet, first published
ago, has sold about
three and one-half million copies.
It has been a personal favorite of
over
Campbell, McCarty & Co.
31
years
mine for at least 15 years.
The first
INCORPORATED
objective
to sell
President, Decker Jackson. He
careful consideration to the
project and followed this with
enthusiastic support.
Then fol¬
gave
DETROIT
lowed talks with members of
<$>
our
Executive
Bought
—
Sold
—
pro¬
permitted
naming these men, as their con¬
tributions were most helpful. With
their combined enthusiasm, wise
counsel and sound suggestions, we
were encouraged to undertake the
production of this movie.' >
Quoted
wish
become the richest man in ancient Babylon, after the King
It is
self.
this
be?
type
A
movie
costumed
Baker, Simonds & Co., Inc.
Established 1920
regular, Hollywoodwith bewigged and
actors?
maybe;
and again, maybe not. The period
of this story is ancient Babylon;
that is part of its charm, and part
the
of
reason
Well,
for
its
"eternal"
to
him¬
project of the Education Committee of which Robert
a
Shepard, Prescott, Shepard & Co., Inc.,
Cleveland, is Chairman.
Against the rich background of beautiful Babylon are revealed
wealth. Scenes include the City Wall and
the laws of acquiring
Ishtar
Gate,
Hanging Gardens,
the
the Tower of Babel,
street,
marine, banquet-and other interior views, all in high eolor,'de¬
picting the riches and grandeur of the ancient city and the opu¬
lence of its citizens.
motion picture is designed
Completely non-commercial, this
solely to tell
mote
story of financial success from which all can learp
No effort is made to sell any specific service or pro¬
a
The film is appropriate for all audiences,
institution.
any
teen-agers or adults.
Commenting
:
the
on
.
.
film, William C. Jackson, Jr., Presi¬
new
dent, First Southwest Company, Dallas, and President of the Asso¬
ciation, said:
"
-
'The Richest Man in
"I
in
a
it
was
are
his Education
public
as a
whole.
indebted to Robert O. Shepard and the members of
Committee, and to Erwin W. Boehmler, our Educa¬
fine motion picture
and efforts which have made this
possible."
Basis for the script of
a
powerful and timely
enthusiastically received by
Association and by the
our
tional Director, for their vision
of
a
in ancient times.
confident this film will be
am
"We
Babylon' delivers
simple and understandable*manner/ A message that
the members of
film should
a
minute, 16mm limited
picture in full color that tells the secret
Algamish—a secret that enabled Arkad
learned from
Arkad
time
Now, what sort of
saw--Hie premier screening of the
"The Richest Man in Babylon" is a 17
animation sound motion
is true today as
educational
the
I
Assopiatiqn.^of - Atnerica>-/:r
Members of the Association
picture at the opening session of their recent Annual Convention
at the Americana Hotel, Bal Harbour, Fla. ■
;
interest
in
dramatically portrayed in a
Richest Man in Babylon," sponsored by
motion picture "The
message
grams.
is
y
The secret of achieving wealth is
Committee,
various
Governors and many others who
had had previous experience and
McLOUTH STEEL CORP.
Committee of the IBA
organizations.
■
: x. r: v
the Education
project of
a
and benefit.
was
our
BUHL BUILDING
film,
new
O.
story entitled "The Richest
in Babylon" would do the
from "The Richest Man in Babylon" showing
scene
the Investment Bankers
With al] these things in mind,
we decided that a movie based on
RAPIDS
a
available for showing by member
securities
the
are,
every-day effort.
our
MUSKEGON
LANSING
us
by necessity, prim--.,
arily concerned with day-to-day
operations.
But the long-range
Program is important, too, and
should be carried on as a part of
PENOBSCOT BUILDING
MEMBERS
those
but
The
haste.will
collected by
little and little will multiply."
business
1566
in
amassed
diminish,
Above is
Arkad, the hero of the motion picture, entertaining at a banquet.
series of anecdotes in
the late George S. Clason,
"The Richest Man in Babylon" is one
a
book under the
same
title, written by
and published by Hawthorn Books, Inc.
Pamphlet reprints of this narrative have been available for more
than 30 years, and
still enjoy
a
wide sale—evidencing the timeless
character of this still timely message.
A special IBA edition of the
ADMISSION
OF
AS A
pamphlet, illustrated, in color, with scenes from the motion pic¬
would not interfere with the
ANNOUNCES
To produce a "live" pic¬
ture with competent actors—cos¬
tumes—scenery—would take the
purse of a DeMille.
No—to portray Babylon in all
its glory and in a maner which
animation technique called "Pancam," typical of many of the most
quality.
MEMBER
THE
mes¬
to be taught, we decided to
adopt a fairly-new technique of
limited
animation so ably em¬
ployed by Stephen Bosustow in
sage
NEW YORK STOCK EXCHANGE
his
Academy Award winning
How
can
this
movie
Buhl
Building
effectively by us?
some
chases
Detroit
be
used
suggestions:
(1) Each
Established 1870
In
,
......
making the motion picture adaptation of the story, the
Wilding Pictures Productions, Inc., utilized the
ducers,
entertaining present day TV commercials.
The
same
;
pro¬
limited
technique has
also been employed
effectively by Stephen Bosutow in
his Academy Award
winning cartoons.
many
of
Through members of the Association, "The Richest Man in
Babylon" will be shown to audiences throughout the United States,
most
Dominick & Dominick
distributed at the Convention...
car¬
toons.
Correspondent
ture, has been published by Prentice-Hall, Inc., and copies were
a
member
Here are
who
should
on
page
en-;
By action of the Board of Governors, sale
prints will be restricted to IBA member organizations for at
least
immediately to show it to his
tire organization.
Continued
of
one
pur¬
film print should proceed
(2) Representatives
Puerto Rico and Canada.
year.
Subsequently, in the discretion of the Board, the
film may be given wider
distribution.
Further information about the proj ect may be. obtained from:
Erwin
W.
Educational Director, Investment
Boehmler,
be
Association- of America, 425
79
4, D„ C.
.
.
...
Bankers
Thirteenth Street^ N. W.r Washington
Number 5804
188
Volume
Continued from page
.
.
.
(sassy n
The Commercial and Financial Chronicle
78
financial
'
1
great
editors
and
The Investment Bankers
of
of
some
Pacific
our
metropolitan
who have
newspapers
wealth of knowledge
a
experience
municate
on
with
how to
Merrill,
Arrangements: Curtis H. Bing¬
ham, Bingham, Walter & Hurry,
Inc., Los Angeles*
<
Richards,
Merrill & Peterson, Inc., Spokane,
com¬
.
Aviation
the
public.
In proposing a meeting early
next year, I am appealing to the
Keith Funstons, the *Ted McCor-
Association oi America Holds
Northwest Group
Beardslee B.
Rocky Mountain Group
Malcolm
F.
Roberts,
the Jim Days, etc., etc.,
and, .of course, to the head of our
organization.
Canadian; Eric St Marae^ E C.
Pitfield & Co, Ltd., Montreal H
Conference:
Southern Group
John P.
own
~
i
-
.
•
Respectfully submitted,
—
so
it would be a
(3") :Each shdwing should be fol¬
lowed by a talk by
the i'epfesehtr
appropriate for the audir
addressed., * . •
educational
these
making them more effective, ef¬
be ^fol¬ ficient and productive. We are all
working'* toward the same goal,
should
distribution ..pf' thb
■but-each is running in
special IB A edition of the booklet
Each; talk
{A)
lowed
by
a
imprinted
and
firm's
the
with
;'.V^ 1
If such a program is carried on
by IBA firms across the land, our
too
country
produce
may
^direction.
name
address.-
each
;
I
many
film. In
a
you
tion
an
wide
IBA edi¬
of the booklet and an
prints
available
for
order
idea
A
Recommendation
My final comment to you is a
proach it in this fashions v.; '*.vr
I
mentioned
have been
a
industry.
carrying
before,
there
number of films pro¬
various segments' of our
duced by
These
on
their
segments
own
number
of good
;
A
feature
winners
are
from others
in
these
As
an
than
Fulton Reid &
Convention
the selection of the
was
three
competition oonducted by the Institute of
class in which he
was
JVilliam C. Jackson, Jr., President, First Southwest Company,
Association, who
personally donated the cash prize, presented the $500 award to
Mr. Canvin, who was also the recipient of a round trip to Bal
Harbour and a day at the Convention, all expenses paid. Mr. Can¬
vin was accompanied to the Convention by Mrs. Canvin.
Francis
Monroe,
I.
duPont
&
Co.,
Lynchburg, Va., his paper "Selection Techniques—Sales Personnel"
being adjudged the best essay submitted by members of the second
year class in which he was enrolled.
^
John B. Riehter, Butcher &-Sherrerd, Philadelphia, whose
manuscript "Mandatory Sealed Public Bidding" was adjudged the
best essay submitted by members of the third year class in which
he
was
enrolled.
1919
in
Corporate and Municipal Securities
.
Members
Mead, Miller & Co., Baltimore
DETROIT
STOCK
EXCHANGE
'
Robert A. Powers
MIDWEST
STOCK
EXCHANGE
.
\
Smith, Barney & Co., New York
Walter A.
Schmidt
639 Penobscot Building
.
DETROIT 26
Schmidt, Roberts & Parke,
Philadelphia
Bell System Teletype DC 206
Telephone WOodward 2-5625
,;
NEW GOVERNORS
The
incoming Governors elected
their respective Groups and
by
took office at the
1958 Con¬
are:
Mark
Davids, Lester, Ryons
Co., Los Angeles.
&
Canadian Group
Corporate Bonds and Stocks
Arnold B. Massey, Mills, Spence
& Co.
Limited, Toronto.
Central States Group
W. Fairchild, The First
Corporation, Chicago; and
John M. Maxwell, The Northern
Trust Company,
Chicago.
Raffensperger, Hughes m Co.
INCORPO RATE D
Mississippi Valley Group
John H. Crago,
Co.,
St.
Jones &
Louis;
Smith, Moore &
and
Edward
20 North Meridian Street
Co,, St. Louis.
Thomas B.
&
Indianapolis 4, Indiana
D.
MEMBER
New England Group
Weeks,
Valentine,
MIDWEST
STOCK
EXCHANGE
Gannett, Hornblower
John W.
Boston;
and
White,
Weld
&
Co.,
Boston.
New York Group
Francis
Boston
and
A.
Cannon,
Corporation,
Robert
The
New
C. .Johnson,
First
York;
Kidder,
Peabody & Co., New York.
—
Municipal Bonds
California Group
j
Indianapolis Bond & Share
CORPORATION
INDIANA
BUILDING
•
«•
E. MARKET ST.
INDIANAPOLIS 4, INDIANA
ME Ires*
*-4321
WATLING, LERCHEN &
Investment Service
Corporate and Municipal Securities
UNDERWRITERS
•
DEALERS
Municipal Bonds
Member: New York Stock
American Stock
Exchange, Detroit Stock Exchange>
Exchange (Associate), Midwest Stock Exchange.
Arbor
Jackson
-
•
Pontine
•
Kalamazoo
•
Birmingham
•
BROKERS
Corporate Bonds
Over-Counter Stocks
Listed Stocks
Mutual Funds
Member Midwest Stock
DETROIT 26, MICHIGAN
Ann
page
Underwriters, Distributors and Dealers
W. Carroll Mead
enrolled, and was also
Dallas and President of the Investment Bankers
Brooks
on
,
Paine, Webber, Jackson &
Curtis, New York f
.
Paul
adjudged the best paper submitted by any registrant at the Insti¬
tute this year, whether in the first, second or third year class.
winners:
Established
Mason-Hagan, Inc., Richmond
Boston
"Why the Economy Will Turn Up: The Recession — Whither?
Wither" being adjudged the best paper submitted by any member
Other
Continued
Luttrell Maclin
H.
first year
Chairmen
CHARLES A. PARCELLS & CO.
Co., Inc.,
John C. Hagan, 3rd
vention
Canvin, First California Qompany, San Francisco,
named the principal winner of the coftipetition, his manuscript
the
respective
Cleveland
ourselves,
example, I would invite the
Winners and Their Themes
of
Foreign Investment: Joseph T.
Johnson, The Milwaukee Com¬
x ;
/
J
for pany, Milwaukee
v
Committees and
San Francisco
perhaps better versed
matters
University of Pennsylvania. Registrants attend the Institute on the
University Campus for a week each spring for three years and
upon completion receive a Certificate of Merit.
Copies of the
winning essays were distributed at the Convention.
was
v
Lee
Higginson Corporation, Chieago. <
'
•
Banking, the executive development program sponsored by the
IBA Education Committee in cooperation with the Wharton School,
John
:
Finance: Charles A. Capek,
1958-59 are:
;
W. Yost Fulton
attempts in
in¬
Essay Contest Winners
essay
New York.
Davis, Skaggs & Co.,
cluding the current training course Alfred J. Stalker
being offered by the Central States
Kidder, Peabody & Co.,
Group of IBA with NYSE and
Los Angeles
Northwestern University.
Edward Starr, IH
More should and could be done
Drexel & Co., Philadelphia
in that direction by securing help
educational
of the
of the
their
Capek
:
George W. Davis
who
IBA
A.
Higginson Corporation, *
Chicago
.
Lynch, Jr., Moore, nard, Shearson, Hamraill & Co.,
The National
Lee
this direction have been made,
recommendation and-I would ap¬
As
Sherrerd,
Philadelphia
-
r-
Federal Taxation: Walter May-
Lynch, Pittsburgh.
Chairmen for 1988-59
Butcher &
too would be wise to take advan¬
they will be
York.
IBA National Committee
W. W. Keen Butcher
judgment, we
delivered tage of a program that would give
us better control by sharing ideas.
from Chicago promptly as long as
this supply lasts. Additional-prints -I do not propose any pooling of
will be made and shipped as or¬ funds—each group must control its
own expenditures.
dered.
•
and
time
Leonard &
;•'
Federal Securities Acts: Paul A#
Coniey, Biyth & Co., Inc.* New
New York
has been
effectively in other in¬
dustries and in my
this
at
This
effort.
Charles McK.
C. F. Childs and Company, Inc.,
presently
used most
order
A limited number of
•blank.
are
embarked on
educational programs to establish
a
general coordinated nation¬
industry
you
descriptive folder,
group
Pierce, Rauscher,
Western Pennsylvania Group
Elwood D. Boynton
of
X I sdo. propose d meeting of rep¬
resentatives of all branches of our
enjoyed our
chair, you have found
that
value
focusing attention on
thet particular segment of busi¬
ness being covered.
Prints Available
hope
the
discount
C.
Pierce & Co., Inc., Dallas.
Cleveland
Charles
•
•
Charles
Prescott, Shepard & Co., Inc.,
different
I do not mean that each
I
do
nor
Cleveland.
Texas Group
Robert O. Shepard, Chairman
is not effective in its own way,
rone
counterparts of "The Richest Man
in Baby ton.'-.. V- XV
ft'**.? K#'|: Vi'{
*
a
Education: Robert O. Shepard,
Prescott, Shepard & Co.* Ine-
1
Planning Committee for Institute
of Investment Banking
efforts toward the sole purpose of
to be
ence
it seems to me that
logical move to try
coordinate
to
ative—a talk built in sueh maimer
as
gqal;
same
EDUCATIONAL COMMITTEE
Craft,
Bank, New
York.
New Orleans.
'
H.
Bobert
The Chase Manhattan
Labouisse, Howard,
Weil, Labouisse, Friedrichs & Co.,
The .New York and
scheduleJ many ■programs.
group showings: Service" groups-X American Exchanges are doing a
PTA's
Colleges — Lodges W splendid job—so, too, the Midwest
Churches-Credit Unions^—Labor and Pacific Coast Exchanges, and
Unions—Organizations of profes- I am sure there are many others.
We are all working toward the
sional men, etc.
encouraged
,
1V
(to be an¬
nounced)
Garrett-
Bromfield & Co., Denver.
micks,
Securities:
Exchange
80
(2596)
40
Continued jrom page
Southeastern
79
the Investment Bankers
Southwestern
ert
Alger J. Jacobs, Crocker-Anglo
National Bank, San Francisco.
Blyth, The National City
B.
Bank.. Cleveland.
Group
Securities:
Industrial
Pescatello,
Co.
Companies:
Calvin
Clark,
MOONEY,
Yeat-
Incorporated,
Co.,
rill
Manhattan
Mer¬
Fenner
Pierce,
Lynch,
&
MORGAN,
Jr., Woodard-
Minneapolis.
J.
Jr.,
F.
McGee, R. W. Press-
Jack R. Staples,
George A.
Fulton Reicl &
Barney
Valley
ards &
M. Gedfles, Clark, Dodge &
*
Co., Cincinnati.
Pacific Northwest
Syndicate: H. Lawrence Bogert,
Charles W. Easter, Blyth & Co.,
Jr., Eastman Dillon, Union Secu¬
rities & Co., New York.
Inc., Seattle.
W ALTER
George S. Writer, Peters, Writer
The Group Chairmen for 19581959 are as follows:
&
New
Co.,
Christensen, Inc., Denver.
New
York
Montreal
New
York
D.*
Muir Investment Corp., San Antonio
Stringfellow,
&
MULLANEY,
PAUL
Richmond
•
A.
III, BEVERLEY B.
MUNFORD,
Richmond
Davenport & Co.,
MURPHY, H. E.
The Commercial and Financial Chronicle,
York
JOSEPH D.
MURPHY,
....
A.*
LEONARD
Piper, Jaffray & Hopwood, Saint Paul
NABERS, DRAYTON
The First National
Distributors, Inc., Philadelphia
KESTER, WALTER C.
M. A. Schapiro & Co., Inc., New York
NEUHAUS, JOSEPH R.*
Underwood. Neuhaus & Co.,
LEONARD
Houston
Newburger & Co., Philadelphia
NEWMAN,
Jr.,
Est.
1938
Bank
Building
Co.,
Bradford
Chicago
SAINT PAUL 1, MINNESOTA
&•
Trust
Company, New York
McKinnon, New York
Company,
EDGAR
Dominick & Dominick,
OSTRANDER.
Milwaukee
LEE
Blair &•
&
CO.,
Co., St. Louis
M.*
Warren W. York & Co., Allentown
'I
)
,
PORTER,
FELIX N.*
The First National Bank, Oklahoma City
H.
New York
.
PORTER, YVILLIAM C.
Dittinar & Co.. San Antonio
RODDY,
JAMES
The
ORA
New
C.
•
...
DONALD
I.«York Herald Tribune, New York
Jr.,
SAMPSON
POWELSON,. RALPH J.
Leedy, Wheeler & Alleman, Orlando
ROGERS,
PRATT, ALBERT*
Paine, Webber, Jackson & Curtis, Boston
ROGERS,
PRATT, MARSOM B.
Estabrook & Co., Boston
ROOSEVELT,
PRATT, Jr., TRUXTON B.
ROSE, MIDDLETON
Laird, Bissell & Meeds, New York
McMaster
Hutchinson & Co.,
Chicagc
TOWNSEND*
Trubee, Collins & Co., Buffalo
JULIAN
Dick & Merle-Smith,
Bankers Trust Company, New York
K.*
New York
ROSENBERG, SAMUEL H.
PURKISS. ALBERT C.*
Asiel &
Co.,
New York
SMITH, POLIAN & COMPANY
Midwest
Slock Exchange
Underwriters and Distributors
We have
an
active retail interest in:
SOUTHERN CALIFORNIA WATER COMPANY Common
New York
424
&
Telephone—JAckson 5065
Francisco
Jr.,
2, NEBRASKA
Hutzler, New York
Irving Lundborg & Co.,
Charles A.
Omaha National Bank Building
OMAHA
GEORGE J.*
♦Denotes
COMPANY Common
Buyer, New York
Salomon Bros.
FARCELLS,
SAULT ELECTRIC
WASHINGTON NATURAL GAS CO. Common
H.
BARRON*
The Bond
EDISON
CHARLES A.*
Parcells & Co., Detroit
Mr. and
Mrs.
_
E.
Keystone Company, Boston
ROGERS,
Co., Denver
.(
;
Scharff & Jones, New Orleans
ROEHL,
POWELL, JAMES M.
Denver
ROCKEFELLER, Jr., AVERY
- \
Dominick & Dominick, New York
Co., Chicago
OTTENS, JUSTIN T.*
San
EDWARD
Schwabacher
R.*
Oppenheim & Co., Oklahoma City
OSBORN, II, JAMES E.
OTTO,
ROBINSON,
ROBERT H.*
Leo
C.
Co.,. Denver
New York
Marshall
OPPENHEIM,
OTIS,
&
WALTER T.
William
FIRST NATIONAL BANK BUILDING
;
J.
DANIEL*
Northern
Thomson
Investment Securities
Garrett-Bromfield
ROBINSON, RAYMOND L.*
Garrett-Bromfield & Co.,
Members
HOMER
Blair <fc Co.,
O'HAR.A,
Harold E. Wood & Company
York
U
ROBERTS, WILLIAM J.
Glore, Forgan & Co., Chicago
ROBINSON, ARTHUR R.
Industrial National Bank, Providence
Co., New York
Hemphill, Noyes & Co., New York
O'CONNELL,
The
New
ROBERTS, MALCOLM F.
Philadelphia
BLANCKE*
O'KEEF,
Co.,
Schapiro & Co., New York
ROBERTS, HARRY A.
Anderson & Strudwick, Richmond
K.
Hemphill, Noyes & Co., New York
NOYES, Jr., JANSEN*
The
&
CHANLDER
Co., Nashville
*
Continental Illinois National Bank,
O'DAY,
Washington
BREWSTER*
Fuller
D.
Co., St. Louis
&
Co., New York
NOONAN, Jr., WILLIAM A.
*
S.
ROBBINS,
St. Louis
Riter &
NOYES,
RIGHTER.
Philadelphia '
NIX, ALLEN J.
1, MINNESOTA
*
EINER
NIELSEN,
C.
;
GEORGE A.
G. H. Walker &
J.
National
Philadelphia
Association,
M. A.
Gibbons &
Boettcher &
Bankers
Washington
U.
JOHN
B.
Sherrerd,
Investment
POLLOCK, WILLIAM E.*
Wm. E. Pollock & Co., Beverly Hills
PORKORNT,
Co., Los Angeles
&
JOHN
&
RIEGER, MARGARET C.
C.
Inquirer,
&
Moulton
H.
Butcher
STEPHEN R.
ELVIN
Co., San Diego
JOSEPH
A.
The Bulletin.
NEWTON,
SHAUGHNESSY & COMPANY, INC.
R.
.
PODESTA, ROBERT A.*
Cruttenden, Podesta & Co., Chicago
Simon
M.*
Dodge & Co., New York
IRVINE W.
RICHTER,
4
Walston & Co., New York
HARRY W.
&
WILLIAM
RICHARDS, CLAUDE C.*
City Bank, New York
RICHARD*
B.
■
W.*
RICHARDS, CHARLES A.
Field, Richards & Co., Cincinnati
Vance, Sanders & Co., St. Louis
M.
York
New
Union-Tribune Publishing
•
New York
Company,
ROYAL
Co.,
JOHN
Loeb, Rhoades & Co., New York
REYNOLDS,
CHARLES
Philadelphia
CHARLES W.
D.
Hallgarten & Co., New York
NEWBUGER, Jr., FRANK L.
Cook
REX,
Clark,
National
&
Carl M.
Bank, Birmingham
Delaware
Newhard,
Bache
RENNAU,
Corporation, * "<
M.
U. S. News & World Report,
L
York
New
NORMAN
E.
PIETROWICZ,
Geo.
:
,
.
CHARLES
POPPER,
York
RENDIGS, Jr.,
York
POOLE, MONROE V.*
Stifel, Nicolaus & Co., Chicago
MURPHY, LESTER V.
Barr Brothers & Co., New York
MURPHY, Jr., PETER J.
Stone & Webster Securities Corporation,
NEW HARD,
H.
WILLIAM W.*
PLENTY,
MURPHY, DENNIS E.*
The Ohio Company, Columbus
Chronicle.
Financial
Indianapolis Bond & Share Corporation,
Indianapolis
RENCIIARD, WILLIAM S.*
Chemical Corn Exchange Bank,
,
rniLLIPS, Jr., BLAIR A.
Shearson, Hammill & Co., Chicago
PLATT,
Masten
E.
&
REISSNER, FRANK L.
PFEFFER, DELMONT K.*
FREDERIC P.*
& Co., Pittsburgh
MULLINS,
Chicago
.
,
VINCENT
F.
Commercial
New
York
PLATT,
NEWBORG,
Mutual Funds Shares
Refsnes, Ely, Beck & Co., Phoenix
REILLY,
The
Equitable Securities
Chicago
u
o
Edwards & Sons, St. Louis
G.
Newhard, Cook & Co., St. Louis
REFSNES, JOSEPH E.
Chicago Tribune, Chicago
L,
Mullaney, Wells & Co.,
NELSON, W7. LINTON*
ST. PAUL
Commission,
&r Exchange
PETERS, GERALD*
Peters, Writer & Christensen, Denver
PIERCE,
Company, St. Louis
Guy*
Jr., JOHN*
-Baker, Watts & Co., Baltimore
Rauscher, Pierce & Co., Dallas
MI LDOWNEY, JOSEPH J.
L.
Trust
W.
REESE, EUGENE M.
Chicago
The First
B.
Minneapolis
REDWOOD,
C.*
Newburger, Loeb & Co., New York
Co., New York
EDW ARD
MUIR, EDW ARD
MURRAY,
First
A.
PEYSER, BENJAMIN F.
C. I.*
Nesbitt, Thomson & Co., New York
Corporate and Municipal Securities
Mercantile
Washington
PEVEAR,
^
& Co.,
New York
THOMAS
REDMAN,
Irving Trust
E.*
MORTON, ROALD A.*
Blue List Publishing
Jr.,
York
MURRAY,
of
'
Jr., JOHN H.
Pierce & Co., Dallas
Rauscher,
RAY,
PAYNE, CARR
Cumberland Securities Corporation,
Nashville
New
New York
Underwriters and Distributors
RAUSCHER.
Exchange Bank,
Corn
PETERSON
Co.,
Brothers,
Lehman
New
Rocky Mountain
GROUP CHAIRMEN
York
N.
&
ERIC S.*
Pitfield &
C.
MORSE,
Newton, G. H. Walker & Co., St.
Charles A. Richards, Field, Rich¬
'f
.
PESCATELLO, MICHAEL
The First National City Bank, New
8.*
New
EDMOND
Smith,
Scott
Relations: Eu¬
Co.,
&
Chicago
Newliard, Cook & Co., St. Louis
Co., Inc., Cleveland.
Ohio
'
«
.
RANKIN, HARLEY L.»
Continental Illinois National Bank,
G.*
WILLIAM
MOWER,
Northern Ohio
3LiOuis.
.
Chemical
PERKLNS, JOHN
PAT
Northern Trust Company,
MORSE, EDWARD*
The Associated Press,
W.
prich & Co., New York.
"Fulton Reid & Co., Inc., Cleveland.
Co., New Y'ork.
Philadelphia
Washington
MORRIS,
MORSE,
Small Business: W. Yost Fulton,
Co., Omaha
New York
Goldman, Sachs & Co., Philadelphia
RANNEY, BRUCE B.*
Ball, Burge & Kraus, Cleveland
"
'
RAUC'H, ALFRED*
vU U
:
Kidder, Peabody & Co., Philadelphia
PENDERGAST, THOMAS J.
Courts & Co., Atlanta
S.
Moseley & Co., Boston.
-
New-York
Securities
Bankers Association,
Investment
MORSE,
Weeks,
New
Cushman
&
Co.,
&
Rand & Co.,
Pittsburgh
& Co.,
PATTERSON, HAROLD
WALTER L.«
Talmage
New England
anty Trust Company, New York.
gene
Richards
PELIKAN, MILES*
John Nuveen & Co.,
The
S.
Rahel
Woodard-Elwood
PATTERSON, EDWARD
Allen & Co., New York
Los Angeles
Co.,
EVANS
The Wellington Company,
Breckenridge, McCourt-
Robert
Cliff
RAND, Jr., ARTHUR II.*
PATTERSON, DONALD C.*
MORGAN, WILLIAM F.
Blyth & Co., New York
New York
Stock Exchange
St. Louis
Sons,
EMERSON B.
&
MORRIS,
Leach, Guar¬
Legislation:
Hooker & Fay, San Francisco
PARKER, NATHAN K.*
MORGAN. LAURENCE W.*
The Parker Corporation, Chicago
Louis.
York.
State
& Co., St. Paul
THAYER
RAND, RICHARD X.*
Waeekerle, Kansas City
PARKER, JOHN G.
Lord, Abbett & Co., Chicago
MORRIS, FRANK E.*
Hunter
Lane,
Alfred
L.
Wood
BAGGIO, J.
Philadelphia
AMORY*
Parker Corporation, Boston
PARKER, H. LAWRENCE
Morgan Stanley & Co., New York
FARKER, JOHN F.
Kay,
&
G.*
The Hanover Bank, New York
ney-Breckenridge & Company, St.
Merle-Smith,
15-Dec.
Lucas, Eisen &
MORGAN, CHARLES F.
Morgan Stanley & Co., New York
MORGAN,
Mississippi Valley
• *
Research: Ralph F.
York
New
RICHARD
Edwards
G.
Morgan
:
Elwood & Company,
Smith, Barney
Securities:
& Co.,
Cabell & Co., Richmond
Branch,
MORGAN,
Space Corporation, Savannah.
&
Rico,
URBAN ».*
MOORE, RODERICK D.*
A.
Arthur H. Rand,
Ge-
Public Utility Securities: Thomas
Dick
Jr.,
Fahnestock
MOREY,
Smith, Detroit.
Oil and Natural Gas Securities:
Railroad
Harold E.
Burnham
2YIORAN, JOHN F.*
New York.
Ross,
Nov.
tween
York
QUI8T, LEO
PARKER,
Govt. Development Bank for Puerto
Juan
Pennsylvania
Thomas F. Willmore, Jr.,
Company,
Johnson, The Johnson,
New
time,
be¬
10, 1959.
sometime
be
73
page
MONTALVO, ROBERTO*
;
Minnesota
Co., New York.
jrom
Colley & Co., Hartford
Nominating: William C. Jackson,
Bdmond N. Morse,
will
they
Kidder,
Michigan
Municipal Securities: Walter H.
Bank.
& Co., Albuquerque
QUINN, JOSEPH C*
Merrill Lynch, Pierce, Fenner & Smith,
The exact dates had
h Attendance at Convention
Stuebner,
Mosley
Philadelphia.
Steel, Drexel & Co., New York.
M.
A.
man,
poration, Indianapolis.
Paul F.
Quinn
RAISS, JOHN
San
Eastern
Indianapolis Bond and Share Cor¬
machte, The Chase
& Company, Inc., San Antonio.
but
York
QUINN, ARTHUR P.*
Fidelity-Philadelphia Trust Company,
William Z. Suplee, Suplee,
Industry:
New
Harbour, Florida, has been selected
as the site for the holding of the
RALPH, THOMAS L.
Robert
Membership: Frank L. Reissner,
Nuclear
,
QUIGG, JAMES F.
Paine, Webber, Jackson & Curtis,
Bal
in
not been determined at press
John P. Henderson, M. E. Alli¬
son
Hotel
Americana
tion in 1959.
Pitfield &
Peabody & Co., .Chicago.
Bullock,* Ltd.,
Southwest
Year's Convention
Association's 48th Annual Conven¬
Trust Company, Kansas City.
States*
Erwin
Hew York.
Jr., First
.Pallas
Next
of
Dates
-
Fund
Distributors, Boston
PUTNAM, HENRY W.*
*
DeCoppet & Doremus, New York
QUAIL. JOHN J.
Quail & Co., Davenport
-
Ltd., Montreal.
Central
Shelby
Davis, & Co., New York.
Investment
33.
Commerce
Luby,
M.
Continued
Eric S. Morse, W. C.
City
First National
Putnam
J.
Canadian
;
Michael
Bank, New York./
Insurance Securities:
Cullom
■
and
Co., Hartford
PUTNAM, Jr., GEORGE*
RAUEL, CLIFF R.*
Chairmen's: David J.
Harris, Bache & Co., Chicago.
Joseph
Texas
California
Rob¬
&
The
47th Annual Convention
Securities:
Agee
Putnam &
Arthurs,
Arthurs,
Lestrange & Co., Pittsburgh.
Sites
Stern
Agee,
W.
Leach, Birmingham.
Association of America Holds
Governmental
Addison
Southern
Rucker
PUTNAM, ALBERT D.
Western Pennsylvania
Harvey B. Gram, Jr., Johnston,
Lemon & Co., Washington.
Teletype—OM 180—181
r
Volume 188
Number 5804
The Commercial and Financial Chronicle
...
ROSENTHAL, WARNER A.
Federal Reserve Bank, New York
ROVENSKY, WILLIAM R.
Hornblower & Weeks, New York
ROWE, ROBERT G.*
Stroud & Co., Philadelphia
SHREVE, WICKLEIFFE
Hayden, Stone As Co., New York
SHROPSHIRE, OGDEN*
Shropshire, Frazer As Co., Mobile
SIEFERT, RUSSELL E.*
Stern Brothers As Co., Kansas City
SIMON, JAY
City National Bank, Chicago
SIMONDS, CLARKE
G. H. Walker As Co., Providence 7
RUHL, JOHN H.
SIMONDS,
Quail & Co., Davenport
RUSSELL, JAMES A.
...
Van, Alstyne, Noel & Co., New York
RUSSELL, P. SCOTT
Baker, Simonds As Co., Detroit
SIMONSOxN, Jr., HENRY J.«
Straus, Blosser & McDowell, Chicago
ROSSANT, M. J.
Business Week, New York
ROUSE. ROBERT G.
■
National
*
RYONS, JOSEPH L.*
.
■
.
.
Lehman Brothers, New York
1
:
'
SANDERS, FLOYD W.
t White,.'Weld & Co.,
Chicago
SANDERS, JESSE A.*
,
.
.
<
Banco Credito
y
'.San"Juan
Ahorro Ponceno,
-
'
SAVARD, J. ERNEST*
-Savard Ac Bart, Montreal •/
SCHANCK, Jr., FRANCIS R.
Bacon, Whipple As Co., Chicago
SCHAPIRO, MORRIS A.
M. A. Schapiro As Co., New York
SCHELKE, WESLEY G.
Seattle-First National Bank,
SCHERCK, GORDON*
Scherck, Richter Co;, St.
SCHLUTER, HAROLD J.
,
J'
"
Co., San Francisco
SCOTT, BUFORD
Scott As
Company^
Chicago
SEEBECK, ROBERT F.
Smith, Barney As Co., New York
SELLEW, WILLIAM W.*
~:\-A
G. H. Walker As
■
Co., New York
,
'
York
:
w.
'
.
Co., Baltimore
J.*
,
A.
*
•WALSH.
STRAUS, FREDERICK W.*
SHELTON, LOCKETT*
Kidder, Peabody As Co., Chicago
SULLIVAN, LEONARD R>
Republic National Bank, Dallas
Prescott, Shepard As Co., Cleveland
SHERBURNE, H. H.
Bacon,-Whipple As Co., New York
Shields
H.
New
York
Shields As Co., New York
SHOLLEY, S. L.*
The
Keystone Company,
JOSEPH
Auchincloss, Parker As Redpath,
Washington
THOMAS B.
P.*
Arthurs, Lestrange As Co., Pittsburgh
Dean
Witter As
The
Co., New York
SWORD, WILLIAM 'H.¬
Morgan Stanley As Co., New York
ROBERT
'
;■
.
G.
York
KELTON
Louis
WHITESIDE, THOMAS
Chace,. Whiteside As Winslow, Boston
WHITLOCK, DANIEL P.*
Ladenburg, Thalmann As Co., New York
WHITNEY, Jr., WHEELOCK
*
A !
and U. S. Government bonds
;
i.
1
TELETYPE
—
178
MP
MINNESOTA
i
!
i .<"** i
^
NORTH DAKOTA
MONTANA
SOUTH DAKOTA
A.
Boyce, Baltimore
Gairdner As Co., New
York
WILLARD,
GALE
Brown Brothers Harriman As Co.,
New
Exchange
MUNICIPAL AND STATE BONDS
TWIN CITY STOCKS
1
1
a
3
ALLISON-WILLIAMS COMPANY
MINNEAPOLIS, MINNESOTA
Teletype: MP 163
Phone: FEderal 3-3475
gf0ffaf?g(faiigffgfniirgfigifai^fp[rainingnaiiaiF3iignafig(fgriatfg(i»*nuiiangjgigigigigigigigigigigiBlaigfgiBlSiciiedte;
Piper, Jaffray & Hopwood
ESTABLISHED 1895
'
-
Minneapolis
Janney, Dulles As Battles, Philadelphia
WILEY, JOHN E.*
•
f
-A
UNDERWRITERS & DISTRIBUTORS
CORPORATE & MUNICIPAL
SECURITIES
V v-!?.
WILDE, BERTRAM M.®
*
Casper
LeROY
Stein Bros. As
Co., Inc.
York
MEMBERS
NEW YORK STOCK
EXCHANGE
AMERICAN STOCK EXCHANGE
MIDWEST STOCK
(ASSOCIATE)
EXCHANGE
WILLIAMS, Jr., C. T.
C.
MP-561
4-
Minnesota, North Dakota and South Dakotav
E.
With Kelton E. White, St.
Minneapolis, Minnesota
Teletype: MP-73
Specialists In state and municipal bonds off
H. Walker As Co., St. Louis
WHITE, MRS.
WILBUR,
Sioux Falls
MINNESOTA
Bank, Chicago
WIDENMANN, HANS A.*
Carl M. Loeb, Rhoades & Co., New York
Telephone, FEderal 3-8141
a
}
WHITE, HARRY II.
Mississippi
Member New York Stock
J.
Lawson^ Levy, Williams 8c Stenv
Financial Center Building; "!*
R.
MINNEAPOLIS 2,
Philadelphia National Bank,
J. M. Dian As Co.,
t
John
White, Hattier As Sanford, New Orleans
WHITE, KELTON E.
to the Rockies.
Great Falls
—
connected with
BANK
MILES
R. D. White As Co., New
with
primary markets;.
Billings
Calif.
now
-
Goldman, Sachs As Co., New York
WHIPPLE, JAY N.»
Bacon, Whipple As Co., Chicago
retail distribution and
Established 1929
is
Jr.
a
WHITE, GILBERT*
Duluth
OAKLAND,
Roth
City
INVESTMENT DEPARTMENT
WESTON, LEWIS
Your gateway to
J. M. Dain &
Jan. 1.
Lawson, Levy Adds
Third National Bank, Nashville
Co., New Orleans
For 30 Years...
St. Paul
on
L.
The First National
from the
Exchange,
(Special to The Financial Chronicle)
ZAHNER, VICTOR H.
WERLY, CHARLES M.*
Putnam Fund Distributors, Boston
WESTERVELT, PAUL T.*
Howard, Weil, Labouisse, Friedrlchs As
the northwest.
York Stock
YUNKEB, ROSWELL J.
A. M. Kidder As Co.; New York
Philadelphia
WEICKER, Jr., THEODORE
E. F. Hutton As Co., New York
WEINTRAUB, ALLAN
Bear, Stearns As Co., New York
WENDT, GEORGE B.®
SYKES, MACRAE
Shields As Co., New York
*Denotes Mr. and Mrs.
partner in Kamen
Company, 25 Broad Street, New
York City, members of the New
WEHRHEIM, ROBERT V,*
SWINARTON, ROBERT W.
Boston
Robinson-Humphrey Company,
Atlanta
ZEITLER, JOHN
William Bjork will become
limited
a.
Stubbs, Watkins As Lombardo,
Birmingham
SULLIVAN, Jr., MARK
SUMMERS,
The
WATLING, PALMER
Watling, Lerchen As Co., Detroit
WATTERSON, WILLIAM H.
Fahey, Clark Ac Co., Cleveland
WATTS, Jr., SEWELL 8.*
Baker, Watts As Co., Baltimore
WEEKS, Jr., ROBERT S.
F. S. Moseley As Co., Boston
WEnMANN, GILBERT H.
White, Weld As Co,, New York
SUPLEE, WILLIAM Z.
Suplee, Yeatman, Mosley Co.,
Philadelphia
SHIELDS, CORNELIUS*
SHORT,
Corporation, New York
STUEBNER, EE.WIN A.
Fahey, Clark As Co., Cleveland
VIRGIL*
As Co.,
McDowell, Chicago
HENRY*
Fitzpa trick, Sullivan As Co., New York
SBEPARD, ROBERT O.*
SHERRILL,
Blosser As
-
YOUMANS, PAUL E.
Bosworth, Sullivan As Co., Denver
Blyth As Co., New York
WANDERS, GEORGE*
The Bond Buyer, New York
WARDEN, FRANK R.*
Central National Bank, Des Moines
WASSERMAN, JOHN
Asiel As Co., New York
WATKINS, MILES A.*
STRADER, LUDWELL A.
Strader As Co., Lynchburg
Swiss American
To Be Kamen Partner
R.
Denver
YEARLEY, IV, ALEXANDER
Leedy, Wheeler As Alleman, Orlando
WALBERT, RICHARD B.
Blyth As Co., Chicago
WALKER, GRAHAM
Gregory As Sons, New York
Trust Company, Newark
Saxton As Co., New York
Straus,
WOODARD, RONALD B.
Raffensperger, Hughes At Co.,
Indianapolis
Zahner As Co., Kansas
opened
ai branch office at 521 Fifth Ave*
New York City, under the man¬
agement of Robert F. Sully.
-
Jacksonville
York-
WAGNER,
STONE, Jr., FRED D.*
Marine Trust Company, New York
STRAVITZ,
York
ROBERT C."
'
Hammiil As Co., New York
SAM L.
Varnedoe, Chisholm As Co., Savannah
VEAZIE, WILDES W.
Mabon As Co., New York
VIALE, CHESTER W.*
L. F. Rothschild As Co., New York
ITCK, MAURICE B.®
M. B. Vick As Co., Chicago
VOSTAL, JOSEPH
Kidder, Peabody As Co., New York
WADS WORTH, ARTHUR L.*
Dillon, Read As Co., New York
Paso
Mercantile Trust Company, St. Louis
SHAW, LEO G.
Ladenburg, Thalmann As Co., New York
SHEAFFER, THEODORE C.*
Janney, Dulles As Battles, Philadelphia
-
Dean Witter & Co. has
.
Shearson,
STEVENSON, 3rd, ROBERT
Investment Bankers Association,
G.
New Witter Branch
,
VARNEDOE,
STOLLE, CARL
•
Corporation,
Ex¬
VAN TUYL,
Louis
STODDARD, DONALD A.*
.Guaranty Trust Company, New York
STOHL, WALTER H.
Butcher As Sherrerd,
Philadelphia
SEWARD, C. CARROLL
Yarnall, Biddle As Co., Philadelphia
SHANKS, WILLIAM S.
The Bond Buyer, New York
SHARP, WILLIAM P.
E.
Wood & Co., St. Paul
WRITER, GEORGE 8.*
Peters, Writer As Christensen,
Eppler, Guerin As Turner, Dallas
EDWARD A.
R. S. Dickson As Co., New York
UNDERBILL, ARTHUR J. C.
Arthur Wiesenberger As Co., New York
URELL, WILLIAM H.*
F. S. Smithers As Co., New York
VALENTINE, HENRY L.
Davenport As Co., Richmond
VANEK, WILLIAM S.
Manufacturers Trust Company,
New
J. C. Wheat As Co., Richmond
STEVENSON, G. C.*
Bacon, Stevenson As Co., New York
Fidelity Union
:
"
York
El
Philadelphia
UHLER,
STEIN, ELLIOT H.*
Scherck, Richter Company, St.
STEIWER, FREDERICK II.
Goodbody As Co., New York
WOOD, Jr., GEORGE M.
George ;M« Wood As Co., Montgomery
Harold E.
New
(Special to Thb- financial Chroniclb)
WOOD, HAROLD
TURNER, JOHN W.
New York
Co.,
■.
McDowell, 39 South La
CHICAGO, 111.—Milton-VS. Altbach has joined the staff of M. B.
Vick & Co., 120 South La ^SaUe Si
1VULBERN, EDWARD B.«
^
Pierce, Carrison, Wulbern, Inc.,
Cleveland
As
'
Howard F.
Joins M. B. Vick. Staff
WOOD, FRANK A.*
Co., Pittsburgh
New York Hanseatic
Steele, Haines As Co., Pittsburgh
Stewart
...
—
changes.
Co., Chicago
TURNER, ARTHUR C.*
..
Dooly As Co., Miami
S.
•
111.
affiliated with Strau^
Salle Street, members of the
York
and
Midwest
Stock
WOOLOMES, J. PAUL*
Wulff, Hansen As Co., San Francisco
STEARNS, PHILIP M.*
Harold
SENER, Jr., JOSEPH W.
John C. Legg As Co., Baltimore
SEVERANCE, CRAIG*
F. Eberstadt As Co., New York
SEVING, FREDERICK T.*
New. York
New
Brown As Sons, New
'
"
now
Blosser &
Francisco
TSOLAINOS, K. P.*
Baker, Weeks & Co., New York
TURBEN, CLAUDE P.*
Merrill, Turben As Co., Cleveland
STEEL, WALTER H.*
HARRY
>
Chicago
E. W. Clarke As Co.,
ARTHUR
FREDERICK
Drexel As Co.,
■
-
Unterberg, Towbin Co., New York
A. E. Masten As
Allyn As Co., New York
STEARNS, GEORGE R.*
The Economist, Chicago
STEARNS, JAMES P<
Ball, Burge As Kraus, Cleveland
STEELE,
E.
r" TRESCH,
'
C.
Oscar E.
,
San
CHICAGO,
Jaffe is
WOLL, ALBERT J. T. '
Halden, Stone As Co., Boston
WONHAM, FREDERICK S.
G. H. Walker As Co., New York
'"
WOOD, DAVID M.* 7
•
Wood, King As Dawson, New York
TOWNSEND, WM. H. P.*
*
STARRING, Jr., MASON B.
A.
'
Straus, Blosser Adds
(Special t6THB plnanciaii CHHONIOUt)
WOLF, PAUL W.
i
Harris Trust As Savings Bank, New York
>
WOLFF, JAMES W.
*
Zuckerman, Smith As Co., New York
-
TOWNE, Jr., JOHN D.*
;
Govt. Development Bank for Puerto Rico,
Washington
STEWART, HAROLD S.*
SENER, JOSEPH W.
John C. Legg &
New.
C.
STETSON, Jr., EUGENE W.
Winslow, Cohu As Stetson, New York
STEVENS, WILLIAM A.
Columbus
SEBEL, HARRY L.*
Selected Investments
Co.,
Dean Witter As
TOWBIN, BELMONT*
SMITH, MARK A.
.
•
.
F. W. Cralgie As Co., Richmond
;
SMUTNY, RUDOLF*
R. W. Pressprich As Co., New York
SOLTIS," PAUL E.' ■■
'
Thomas As Co., Pittsburgh
Alex.
Stringfellow, Richmond
GEORGE G.
The Ohio Company,
McCormick As Co.,
Inc.,' Dallas
STAPLES, JACK R.
Fulton Reid As Co.,
Chicago,
SCHMELZLE, ALBERT M.«
Fusz-Schmelzle As Co., St. Louis
SCHMIDT, WALTER A.
Schmidt, Roberts & Parke, Philadelphia
SCHOENBERGER, CHARLES A.
National Boulevard Bank, Chicago
SCHREDER, HAROLD X*
Distributors Group, Inc., New York
SCHROEDER, FRANKLIN L.
Braun, Bosworth As Co., Toledo
SCHUTZ, JOHN C.
Chiles Schutz Co., Omaha
SCHWABACHER, Jr., ALBERT E.
SCULLY,
As
■■
Seattle
WITTER, WILLIAM M.
'
W.'C. Pitfield As Co., New York
TORREY, GEORGE R.
Townsend, Dabney As Tyson, Boston
STAFFORD, Jr., JOHN H.*
Lee Higginson Corporation, New York
-
Atlanta
RAYMOND
J.
Dean Witter As Co.,
Robinson-Humphrey Company,
TORREY, DAVID L.*
SORENSEN, WALTER M.
Rotan, Mosle As Co., Houston
.
The First National Bank of
New York'
New York
Instruments,
SPENCE,
Seattle
Louis
>
The
'.
SMEAL, FRANK P. Guaranty Trust Company, New York
SMITH, BRYAN F.
,
Texas
.
'
-
-
CHICAGO, III.—Ernest V. An-*
derson, Jr. has been added to the
staff of Paine, Webber, Jackson &
Curtis, 209 South La Salle Street.
Weeden As Co., San Francisco
TOMASIC, ANTHONY E.«
Thomas As Co., Pittsburgh
TOMPKINS, HENRY ft"-
"tribune, Washington
John SmalL As Co.,
Weeden
Moore, Leonard & Lynch, Pittsburgh
Schwabacher As
York Herald
Kuhn, Loeb As Co., New York
-
WINSLOW, SAMUEL R.«
Winslow, Cohu As Stetson," New York
WINSOR* HI. JAMES D.®.
Yarnall, Biddle As Co., Philadelphia
WISE, JOSEUH B.
J. A. Hogle As Co.,. New York
WITTER, WENDELL W.
.
Simpson, Emery As Co., Pittsburgh
SIPP, Jr., PAUL L.*
Stern, Lauer As C07 NfcW-York
SLEVIN, JOSEPH R.«
.
SMITH,
SATLER, FRANK L.*
*
With Harry Theis, St. Louis
N
THIERIOT, CHARLES II.
Carlisle As Jacquelin, New York
TODD, WILLIAM H.* *'
'
'
•-
Wdhfcer
WING, IVAN W.*
:
THAYER, ROBERT L.
Lehman Brothers, New York
Albert Theis As Sons, St. Louis
THEIS, MRS. HARRY
*
Paeific Northwest Company,
Philadelphia
THACKARA, CHARLES V.
Shearson, Hammiil & Co., New York
.SMALL, JOHN*
Dallas
'• ••:
SANFORD, Jr., J. B.
-White, Ha'ttier & San ford, New Orleans
SANZ, A. ENRIQUE*
•
Barron's Weekly, New York
WILSON, HARVEY WRIGHT
Model, Roland As Stone, New York
WILSON, LYLE F.»
THEIS. HARRY*
New
.
.Sanders As Co.,
WILSON, FRANK
Girard Trust Com Exchange Rank,
Research
With Paine,
(Special to The Financial Chrojuci*)
Robert W. Baird As Co., Milwaukee
Dempsey-Tegeler As Co., St. Louis
TERRELL, ALLEN M.
Simpson, william g.*
■
G.
Newburger, Loeb As Co., New York
WILSON, CARLTON P.*
Hallgarten As Co., New York
SEKPSON, H. L. '
Underwood, Neuhaus Ai Co., Houston
Corporation,
Hew York
Lester, Ryons & Co.,-Los Angeles
SAGE, II, ANDREW G. C.
WILSON, ALFRED
i
Bankers Trust Company, New York
SIMPSON, Jr., F. BRADFORD
'
S.
The Dominion Securities
E.*
New York
SIMPSON, CRAIG, deV."
Moseley & Co., Boston
RUTHERFORD, GEORGE P.*
1
&
FRANK
Harris As Partners, Toronto
TEGELER, JEROME F.
W.*
Securities
Jr.,
TAYLOR, J. BLYTH
Corporation,
RUSSELL. RENOUF
F:
TAYLOR,
Fulton National Bank, Atlanta,
TAYLOR, GARRETT H.«
Wood, Gundy As Co., New York
.
-Glore, Forgan Be Co., New York
■
RALPH
ei
(259*7)
T. Williams
As Co.,
Baltimore
WILLIS, ARTHUR H.
Discount Corporation, New York
WILLMORE, Jr., THOMAS F. .
Merrill Lynch, Pierce, Fcnner As Smith,
Detroit
ST; PAUL
MINNEAPOLIS
ROCHESTER
GREAT FALLS
-
>
BILLINGS
'
-Ah
82
The Commercial and Financial Chronicle
(2598)
Continued
jrom
page
Thursday, December 18, 1958
...
Offers Higher Fourth
3
Quarter Projection
IBA
Newspaper accounts at present
are
reporting
that
government
The Business Outlook lor 1959
PAST PRESIDENTS
economists
V
the
is
1955-56
1956-57
1957 -58
happening to inventories. I have
already pointed out that produc¬
tion fell by $20 billion from the
lion
the
in
third
Government
quarter.
purchases
State
third
in each successive quarter.
quarter of 1957 to the first
of 1958; the last line of
table shows that during the
the
period sales fell by only $8
billion.
In fact, if you compare
the figures for the first quarter of
1958 with the first quarter of 1957,
you will see that total sales at the
bottom of the recession were just
as high
as they had been in the
comparable quarter of the previ7
ous
year.
This shows you how
well most of the economy held up
same
Paradoxical
:
7
:
t
in the face of
a really drastic in¬
ventory adjustment.
W. C. Jackson,
Robert H. Craft
Jr.
George W. Davis
*
It
can
-
55
1952-53
54
it
is
is
1954
-
a
that businessmen
me
important lesson from
figures. The lesson is that
these
1953
to
seems
learn
an
business
policy itself which
of the periodic
recessions which we have experi¬
prime
in
enced
cause
the
businessmen
postwar period.
will
be
a
little
If
less
exuberant
during booms in build¬
ing up inventories and expanding
plant, and if they will resist the
emotional cutbacks to which they
seem
prone
as
soon
as
a
minor
business
adjustment appears, we
likely to have an increasingly
stable, and profitable, economy in
are
the future.
Now
let's
period.
turn
to the recovery
The bottom of the
sion was reached in
WtfteriL Schmidt
T. Jerroid
Ewing T. Boles
Bryce
reces¬
Gross
small
and
jumped upward a large amount in
the third quarter. National output
national
product
April.
rose
a
Federal
Federal
in
Decline
industry hurt national outr
put in October and early Novem¬
ber, but I believe this quarter will
nevertheless exceed $455 billion
purchases
If my
also
helped, but here I think the
fighres will surprise you. If you
will
look at
will end this year at,
Toiitput $18 bilL
lion ahead of the fourth quarter
cf 1957, and $12 billion ahead ol
that this type of
the
of
re¬
was
year
below the
It is
still
comparable quarter of 1957.
unfortunate that, during a period
when we had idle plant and idle
labor,
did not make greater
opportunity to secure
badly needed defense goods at
virtually no real cost to the econ¬
omy.
I do not know the reason
we
of
use
the
1957
very poor
the
cession, and in the third quarter
of:this
peak
quarter.
Because
performance in
opening months of the year,
national output for the full year
1958 will barely equal 1957.
Re¬
ferring to the last line of the
table, however, you will notice/
that total sales in 1958 will top the
1957 figure by about $5 billion.
Federal expenditure was actually
declining at the bottom of the
we
rate of national
a
defense spending (shown in brack¬
see
estimate turns Out to be,
accurate,
Federal Government
ets) you will
preliminary
mobile
•
SpendUjg
Government
estimates
these
will prove too low. The succession
of strikes and delays in the autot-
V ;
•
I believe
that
steadily
-
estimate
national
quarter gross
product at $450 billion.
continued
upward all through the
recession, reaching a new record
quarter
unofficially
fourth
the
The
1958
recession
will therefore
down in the history books as
go
the
sharpest, but by all odds the
shortest,-' of. the - three postwar
in defense output, but business adjustments.
~
r
•'**
the figures suggest a very poor yv>*r-'Ui P.'7'.*- *
The Business Outlook for 1959'
state of ' military forward plan¬
ning.
'
V
"»Now, the turning to: the ' year
for the lag
..
ahead; let's analyze each of the
quarter of this year major segments of the economy,
larger increase comparing what is likely to hapr
than in the third quarter. All seg¬ ,pen -in 195& with performance in
ments of the gross national prod¬
1958, and thus come up with an
uct are'now rising. In some areas, estimate of the probable increase
such as business capital spending or decrease in total national out¬
and foreign trade, the increase- is put during the coming year.
j
very small.
But in others, parBusiness Capital Expenditures.
My estimate of 'national output
in the fourth
shows
even
an
amount in the second quarter
chases are moving ahead strongly. Business
spending on plant and
Housing is booming at the highest equipment will rise in 1959, but
level since the year 1955.
State the 'increase will be a modest one.
in the thifd quarter—at a $439 bil¬ Government expenditures are con¬
The low point in business capital
lion rate—approximately equalled tinuing their inexorable upward
expenditures was reached in the
the average rate of output during march.
Consumer purchases are
third quarter of 1958.
The cur¬
the full year 1957. Looking with¬ likely to spurt ahead a full $7 bil¬
rent fourth quarter will probably
in the total at the individual seg¬ lion,
and there is a noticeable show a fractional increase because
ments, you will see that it was not trend back to durable goods. Fed¬ of the
beginning of a pickup in
an
increase in business spending eral Government spending is just
purchases of durable equipment.
which first brought about the up¬ beginning to boom in earnest. It There is as
yet no sign of a rise
turn.
Inventory liquidation did is an unhappy commentary on the
in business construction spending,
slow down somewhat, but capital slowness with which government
and many industries are still oper¬
spending continued to decline. It machinery
gets
underway that
was
government
spending
and Federal Government purchases ating far below capacity. Because
particularly consumer spending will probably rise by a larger of the continued existence of some
which brought us out of the re¬ amount in the fourth quarter of
excess capacity
in the first half
cession. Consumer purchases rose this year than they did in the
of 1959, there is unlikely to be
by over $5 billion, to reach an three quarters from October, 1957
all-time record rate of $291.5 bil¬ through June, 1958.
any increase in business construo
Underwriters, Distributors and Dealers in
Corporate9 Municipal and
Unlisted Securities
J. Barth & Co.
ESTABLISHED 18S3
MEMBERS:
NEW
YORK STOCK EXCHANGE
AMERICAN STOCK EXCHANGE (Associate)
PACIFIC COAST STOCK EXCHANGE
SAN FRANCISCO
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since 1887
Private Wire Connections between all Offices
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to our
New York and St. Louis
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Correspondents
contributing to
PROGRESS
WESTERN
Since
early days—when William R. Stoats & Co. financea such
our
enterprises
as
California—to
Fluor
Southern California 'tdison and Union Oil Company of
some
of
our
recent
underwritings: Northrop Aircraft,
Corporation, The Siegler Corporation, Norris-Thermador, The Stuart
Company, California Interstate Telephone, Solar Aircraft, Brunswig Drug,
The
Valley National Bank of Phoenix, Southern Nevada Power Co.,
Hoffman Electronics, etc., etc. —is a span
We're proud of the West's
Underwriters and Distributors...
growth
We're proud, too (and we think
In the West's greatest
market
Rrst California Company
Western progress...
over
of well
these
justly so) of
our
half
over
seven
a
century.
decades.
contribution to
through public offerings and private placements
of securities. Our experience can be
helpful to
you.-
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INCORPORATED
MEMBERS!
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STOCK
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EXCHANGE
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STOCK
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William R. Staats
EXCHANGE
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(ASSOCIATE)
established 1887
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,
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Volume
188
5804
Number
.
.
.
The Commercial and Financial Chronicle
83
tion
of
spending
until
the
last
housing starts began to pick up
rapidly and they have risen in
every single month since March.
They are now running at an an¬
half
next year.
Business
spending on durable
equipment, however, is likely to
move ahead steadily from now on.
i
There
is
of
course
connection between
a
nual
the
necessary
business
In
expenditures and busi¬
ness
expenditures on machinery
and other durable equipment. But
the emphasis in the coming year
be
more
for
level
of
-1957-
1,200,000—
home
thinking
Gross. Natioinal
the
in
1958,
it
has
and
4
bo •"
Federal
developed into that
441.2
445.6
438.9
425.8
2.9
2.2
—2.3
—9i5
41.0
Government
of the
Purchases.
of
course
tories.
a
As sales grow, there is
need for larger inven-
The
need
at
is
present
principally at the retail level. The
ratio
,
between
retail
419.2
2.0
5.4
41.0
0.5
0.5
4390
-—5.1
45.1
47.4
41.5
1.4
3.5
50.5
50.9
51.9
54.5
53.4
(46.0)
(45.6)
(46.0>
(46.6)
36.1
37.8
38.6
39.1
17.2
16.5
16.9
17.6
17.1
16.2
47.1
50.8
52.8
33.1
36.1
39.7
17.9
279.8
.
41.5
19.5
17.7
17.0
17.8
298.0
269.4
264.4
291S
142
143
143
.
288.3
287.2
286.2
288.3
291.5
144
145
139
130
128
136
1,028
1,010
950
1,040
1,185
Consumption of all goods and services
1,210
1,094
993
435.2
438.3
443.4
441.2
435.3
437.0
444.0
455.5
41S.8
439,3
-
0.7,.
("47.4)
•
39.9
984
housing starts
■
'
0.5
50.9
1958(e)
1.0
1.0
v
1.9
1957
440.3
.«
.
134
rr-1,095
.
-
444.1
1
and
The
rise
during
mildness
of
Estimated.
,e
a
postwar recessions has been.
and sales is today lower than a.t~ of the
backlog of unfulfilled de¬
ahy time in the past eight years. mand built
up in the long period
Although it is of course desirable 1830-45. In the two more receht
i
.
"tEl,.-. >ff
each
good performance of this industry
was due
primarily to the intensity
inventories
457.5
(46.9)
counts
were
removed,
last
housing
starts bounded
,
-
439.0
—5.0
36.0
upward. They are
partly attributable to the excelstill soaring, but the tightening in
lent showing of residential
con-;
the
capital
market
in
recent
sti uction in the face of
otherwise.
months
once
again
raises
the.
depressed business conditions.
question whether mortgage funds
In
the recession of
1949, the will continue to be available for
The increase in business spending
on inventories is also likely to be
429.0
—8.0
282.5
business boom
recession.
1956
51.5
.
are
likely to exceed the
figure by about $2 billion.
Q(e)
146
in
moderate.
3.6
42.1
Q
943
ter-cyclical
industry."
That
is,
housing tends to decline during a
Inventory
4.2
46.3
Q
(thousands)—
Private
Busness
47.7
Q
(47.4)
Index
1959
Q
35.9
50.5
(45.8)
>
Consumer spending
of industrial production
nomic species known as a "coun¬
1958
47.7
4.2
purchases-
purchases
expenditures
Fourth
40.7
47.6
Government
Housing
eco- ;;
rare
-FullYcar-
Third
1.1
—
Defense
State
replacement of equipment and
on expansion of
plant. Total
plant and equipment expenditures
less
Second
Q
Business capital expenditures——!
Export gap
outlook
must
First
Q
.
housing
Fourth
436.3
!!..
(billions)
annual rates)
-1953-
Third
Second
Q
con¬
Product
Inventories——
about
1956-58
All, except index of industrial production, at
First
remembered that residential con¬
struction in the postwar
period
modernization
on
highest
of
excess
struction since 1955.
con¬
struction.
will
rate in
MAJOR ECONOMIC MEASURES:
(All seasonally adjusted.
FHA and VA loans.
already
secured
commitments
to
Builders have
mortgage
loan
them at
carry
half
1958
will
continue.
sufficient
to absorb the expected
growth of the labor force and to
reduce
unemployment to a normal
level by the second half of the
year. Wage rates will continue to
rise, although there is hope that
increases
a
of
resort to credit buying, consumer
Employment: will
increase
by 1 pin-chases will probably rise by
about
1,600,000, which will' be $16 billion, and the trend toward
will
be
related
more
qurable goods which began in the
last halt of 1958 will "be continued
next year.
Summary
I
have
now
discussed
all
the
major segments which, go to make
up national output. My estimates
high volume over the next few closely to improving productivity
have been that: business capital
months, but money is becoming than in many of the postwar years.
expenditures will rise by $2 bil¬
lies increasingly1 difficult to get for The, average. work week
will
tory at as low a level as possible,
lion; the reversal in * inventory
strange the financing of older homes and lengthen slightly.
Higher social
retailers are beginning to realize;!
^workings of government imposed there is bound to be a further security and private pension bene¬ policy will have an upward effect
that profits can be hurt just as
on
interest rate maximums on mort¬
production of--$7.5 trillion;
tightening in the capital market fits will boost the income of the
badly through lost sales as through gage loans. You are as
housing expenditures will exceed
familiar next year.
retired.
Corporate profits ..will
lost sales as through high costs.
the 1958 figure by more.than $1
with the effect of these maximums
This tightening in the supply of improve markedly from the low
At the manufacturing
billion; total government—Tedlevel, stocks as I am. Because yields on FHAmortgage funds next year will 1958 levels, although dividends,
of
eral, state and local—purchases
yaw material are likely to rise, VA mortgages are not free to rise
which Jiave been well maintained
unquestionably
exercise
a
re¬
bui inventories of finished prod¬
will jump $7.5 billion; and jwm.except through the medium of
during the business adjustment,
straining influence on residential
ucts are adequate in most lines
so
discounts, these mortgages become construction. But the election re¬ will not rise proportionately.
sumer purchases will be up by $16
that Jotal manufacturing inven¬
unattractive to lenders when the
sults last month are also a factor
tories will show only a small in¬
Summing up these
The net result of all these fac¬ billion.
yield on other securities moves to be taken into
consideration. It
crease.
Principally because of re¬ above the maximum mortgage
tors is that total personal income ponents, national output is-lil
seems to me a safe bet that Contail
stock-building, total business yield.: The result is that
housing gress will push through a new in 1959 is likely to be up by about to rise by $34 billion above the
inventories will probably rise in tends
to J decline
when
capital housing bill early in the next ses¬ $20 billion. Even without
Continued on page 84
1959 by about $2.5 billion.
heavy
*markets tighten
during a business sion. There is hope that the arti¬
to.reduce costs by holding inven¬
business dips, the explanation
almost
entirely in the
•
"
>
Although this increase in inven¬
tories is quite
small, the effect on
production compared to
situation will be large.
the
'
The
opposite
1958,
situation
occurs
when the general business
1958
In
boom.
ficial and uneconomic controls on
FHA-VA interest rates will
be
picture
lifted; there is a greater probabil¬
ity that more government funds
investments decline
abundant will be pumped into the mortgage
low sales in
mortgage funds become available market through Fanny Mae..
inventories; in 1959, production and
buyers are encouraged to pur¬ Whatever the device chosen, there
will exceed sales
by $2.5 billion chase homes.
The net effect
of will be action to prevent a marked
in order to build
inventories. It js
in
FHA-VA
residential construc¬
interest maximums
is decline
production
weakens and yields on alternative
held $5 billion be¬
order to liquidate
was
—
therefore clear that the
inventory
turnaround
alone
will
not to
that
mean
for
production in 1959 will exceed the
1958 level by $7.5 billion.
Housing Expenditures.
segment
of
A
is
third
total demand
period of years
fact, total housing demand
probably reduced. But some
demand
economy
which
moderate increase in
Housing started the
the
perous
is
transferrd
from
pros¬
years, when it would
mally come into
construction! recession years.
year 1958 at
very low level partly because of
the recession and
the
partly
an
market,
to
y-
•
After
the
gency
Housing Act
in
the
winter.
passage; of
capital
Further Capital Market
because
severe
unusually
the
followed
easing
remain
close
to
recent
the
full
year,
high
there
will be about
1,150,000 private
starts, with at least 50,000 pub¬
licly financed starts. Total expen¬
For
on
new
residential
year
ket
the
pattern I have just
Once the capital mar¬
eased" andh controls
on'dis-
will
Goverment
-
id
the
the
exceed
Spending.
government
AND ITS INSTRUMENTALITIES
1958
Moving
sector
UNITED STATES GOVERNMENT
con¬
during
described.
market,. however,
to
levels.
struction
past
OBLIGATIONS OF THE
ing forces which I have discussed,
housing starts in 1959 are likely
figure by more than $1 billion.
the
IN
.
.
Stringency
Housing
Emer-
and the
\
Because of the various conflict¬
ditures
nor¬
a
ox
tion.
over a
—In
the
will show a
1959
is
residential
increase
housing
DEALERS
BANK, UTILITY AND INDUSTRIAL
the
of
COMMON STOCKS
economy, it is an unfortunate fact
that
Federal
Government
pur¬
chases of goods and
show
services will
larger increase next
a
year
than
they did this year. I have
already referred to the ponderous
in Western Securities
fashion
which
government
small
in
The
moves.
increase
in
government spending earlier this
UNDERWRITERS AND DISTRIBUTORS
provided little assistance to
the private economy in weather¬
ing the recession. Now that busi¬
ness
is
moving
ahead rapidly,
year
Underwriting and
corporate
financing
government
are
Private placements
..
.
just
getting
Whereas
and reorganizations
mergers
purchases
Municipal underwriting
.
.
.
Advisory service
to
municipalities
spending
into
Federal
in
1958
OF
programs
full
swing.
Government
increased
by
1957, the in¬
in 1959 will be about $3.5
MUNICIPAL, UTILITY AND INDUSTRIAL
about $2 billion over
crease
BONDS
V *" V
1
-
•
k
■
i
_
'
billion.
State
and
local
government'
spending in 1959 is likely to rise
more rapidly than Federal
Government
spending.
Outlays
under the Federal-State highway
toy
even
will
programs
tially,
Sch wabacher & Co.
Members: New York Stock Exchange
American Stock Exchange (Associate)
New York Produce Exchange
-
-
-
Pacific Coast Stock Exchange
Chicago Board of Trade
Commodity Exchange, Inc.
-
New York Cotton
Exchange
Fresno Cotton Exchange (Associate)
-
Salt Lake Stock Exchange
SAN
at Sutter
Bell
Telephone
FRANCISCO 4
System Teletype SF 349
-
SUtter 1-5600
Private wires to principal offices
voters have recently
tremendous volume of
and
amount
Montgomery St
a
STOCKS
substan¬
municipal bond issues
to
finance new schools, water¬
works, and public buildings. The
rise in state and local government
purchases in 1959 is likely to
mean
100
and
approved
state
increase
BANK, UTILITY AND INDUSTRIAL
to
$4
that
spending
billion.
total
—
This
will
government
Federal,
state,
and
J, S, Strauss & Co.
155 MONTGOMERY ST.
local—in 1959 will amount to the
staggering
sum
Consumer
SAN FRANCISCO 4
of $100 billion.
Buying.
The
final
piece in the 1959 business outlook
NEW YORK
TRESN0
MONTEREY
SAN JOSE
OAKLAND
SANTA BARBARA
SACRAMENTO
'
SANTA ROSA
SALT LAKE CITY
will be supplied by the consumer.
I
believe the rise in consumer
spending during the coming year
will be large. The trend toward
durable goods which began in the
Telephone — EXbrook 2-8515
Bell
Teletypes —SF 61, SF62, SF 621
The Commercial and Financial Chronicle
34
..
.
Thursday, December
18,1958
(2600)
Continued
The
from page S3
is there¬
for 1959
outlook
for
fore
prosperous year,
a
Continued from page
The Business Outlook
will
ployment
and industry will
more efficient utiliza¬
duced to normal
1958
the
reaching a total for
full year 1959 of over $470
level,
to
move
a
capacity. Toward
the slack in only $767,717 and since it was ac¬
is taken up, we are quired late® in the year, its acqui¬
tion of existing
the end of the year, as
billion.
the
economy
the first half of
probably remain quite likely to be reminded once again
that with all the progress we are
stable. There will still be a good
deal of excess plant capacity, and making in business techniques and
economic understanding we still
unemployment will not be reduced
to normal before mid-year.
The have not come up with a workable
solution for one of our most se¬
effect of this excess plant and
labor capacity, plus a small de¬ rious problems—the chronic ero¬
cline in food prices, will be to sion in the purchasing power of
Prices
1959
curb
during
will
the strong forces
threat
of
Joins Shaw,
Hooker
(Special to The financial Chronicle)
Calif.
SAN FRANCISCO,
Do¬
staff
—
lores S. Price has joined the
will
inflation
renewed
dollar.
the
which are
always exerting an upward pres¬
sure
on prices.
But as the year
1959 draws to a close, the economy
will near capacity operation and
it will be at this point that the
of
Shaw, Hooker & Co., 1 Mont¬
gomery Street,
members of the
Pacific Coast Stock Exchange.
become acute.
capital markets
unlikely to tighten appreci¬
ably for the next few months, but
thereafter 1 expect a steady tight¬
ening with a slow upward move¬
The money and
are
ment
in- interest
already
which
factors
I
rates.
the
in that year.
Important
have
with William R. Staats &
Co., Ill
Bateman Eichler
t
Co
Investment Securities
'
■
some
the
of
high¬
lights:
Engineering de¬
partment as a base, and the Ex¬
ploration division represented by
decision
to
engage
in manufacturing; a true
diversi¬
1946:
The
fication.
1947-49:
GSI.
company's activities brought
to date are shown on Figure 5.
Sales for 1958 now are estimated
Developments
were
The
increase
in func-
tionalization; a beginning of much
improved management and con¬
the
$90 million, the
number of employees has grown
at
slightly
over
In the fall of 1949 the com¬
trols.
pany
indicated by the
secured
business and
license to
a
to say later.
the
had
company
balance
improved
much
been
its
capital structure better
balanced by means of a long-term
loan from the Equitable Life As¬
surance Society.
Fourth, through a merger with
,
(i
These
The
.
enjoys today.
tern the company
good acquisition.
was a
sheet
'
our
achieving the kind of growth pat¬
The second
and
-
in
that
operate under patents of Western
Electric Co. This was a major de¬
cision about which we shall have
Sutter Street.
it'
group
management
were
basic
in
some
employed its first full-time
salesman, who was later to de¬
company are not shown on Figure
3 because their effect on company to approximately 7,000, and profits velop its Marketing Division. It is
earnings was not major in the are estimated at $5,210,000 (or ap¬ worthy of note that until this time
all company sales were made by
period under consideration.
proximately $1.60 per share) in¬
management people who normally
One of these was acquisition of stead of the $4,722,633 indicated
filled other posts.
Houston Technical Laboratories in on these charts prepared earlier
1950-53: Increased emphasis on
December, 1953.
This company in the year. It can be seen that
was an
instrument maker whose the sales of 1957 more than dou¬ manufacturing and
engineering;
efforts were devoted largely to bled those of 1955, and the sales 1950 first real
planning mecha¬
of 1958 will nearly double those
making gravity meters for oil ex¬
nism
put in operation;
growth
ploration.
Its product was top of 1956.
TI becomes
Let me review some of the sig¬ during Korean War.
calibre, and time has shown that
Third,
\
on
parent
the
Several things important to
more
A-
of
a
and
important point not
chart was that in
1952 the management had decided
/ SAN FRANCISCO, Calif.—Wil¬
liam B. Hale has become affiliated to engage in the semiconductor
(Special to The financial Chronicle)
mortgage market.
-r
effect
material
no
performance
company
this
on
may
had
sition
With William R. Staats
special
affect
the
commented
1-5
decisions
Problems oi Management
In a Technical Business
months. Unem¬
gradually be re¬
ing the first six
For 1959: McKinley
Fig¬
17-year record portrayed on
ures
output /increasing
substantially
and prices relatively stable dur¬
in the
critical times
and
nificant
23
with
Intercontinental
' '■
and
Co.
Rubber
listing on the New York Stock
Exchange, access to public financ¬
a
,
453 SOUTH
SPRING STREET, LOS ANGELES
13
obtained.
TI's research effort had
been consolidated into
a
central group and its contribu¬
tions
were
beginning to make
themselves felt as a very real plus
in the picture.
ing
28
NORTH
GARFIELD
AVENUE,
PASADENA
for
209
AVENIDA
DEL
PACIFIC
MEMBER
REDONDO
NORTE,
STOCK'
COAST
was
Fifth,
1
BEACH
EXCHANGE
year
a
Overall this chart demonstrates
that business
was
good and show¬
ing steady and impressive devel¬
opment. Further, our management
team had developed some real and
Crowell, Weedon & Co.
Members Pacific Coast
Stock Exchange
DISTRIBUTORS
UNDERWRITERS
DIRECT PLACEMENTS
650 S. SPRING ST.
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-
r
justified self-confidence. They
worked hard, they worked well
together, and they were good.
This chart, however, begins to
indicate what the potential ol'
Texas Instruments might be. With
the advent of Korea, the manufac¬
turing business grew very rapidly,
as
can
be noted from the sharp
upward sales curve depicted. Sales
and income were almost quintu¬
pled over 1949—reaching $27,000,000 for the former and $1,270,125
for the latter. Employee numbers
had increased to 2,227, something
less than treble the level of 1949.
Figure 4 shows only one addi¬
tional
with
of
year
company
decline
a
of
sales
company
about
and
history,
10%
little
a
*
in
'
•
,
'
Dean Witter
less
&
than that in net income. Employee
Lester, Ryons & Co.
MEMBERS NEW
American Stock
YORK
Exchange (Assoc.)
level, however, was almost con¬
stant.
The drop in sales volume
was accounted for by cessation of
the Korean fighting and our fail¬
ure adequately to
anticipate the
sharpness and severity of cut¬
backs
and
cancellations
v
•
UNDERWRITERS AND DISTRIBUTORS OF
INVESTMENT SECURITIES
-
829 So. Hope Street, Los Angelee 17, California
CXAHEMONT
CORONA DEL MAR
LONG BEACH
was
something else in
picture, too. It was decided
our
organization
through creation of product and
central staff divisions, one of the
agement
RIVERSIDE-
..
SAN DIEGO ""
ENCINO
SANTA ANA
SAN
FRANCISCO
•
IOS ANGELES
•
NEW YORK
•
CHICAGO
39 Offices Serving Investors
to
Dealers in Industrial & Public Utility
Stocks & Bonds
our company man¬
made.
Though
it
fortitude to divert the
reinforce
the
the
foundation
Active Retail Outlets
be¬
structure
for the strenuous days of expan¬
management
Denault
Co.
sion ahead.
—
GLENDALE
POMONA
has
some
neath
Telephone MA 5-7111
PASADENA
circuit to Honolulu
decentralize
organization by a major change of
this kind, with a resultant de¬
crease in sales and profit, it was
worthwhile, for it was necessary
•
OFFICES
Private leased radiotelegraph
'
the
to
took
INQUIRES INVITED
—BRANCH
Honolulu Stock Exchange • Chicago Board of Trada
and other leading commodity exchanges
There
better decisions
COMPLETE TRADING DEPARTMENT
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Exchange
Midwest Stock Exchange • American Stock
Decentralization
Pacific Coast Stock Exchange
Hope
mili¬
Members
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tary work which quickly followed.
STOCK EXCHANGE
Comer Wilshire and
in
HOLLYWOOD
REDLANDS
SANTA MONICA
The
three
company are
major units of the
clearly shown here:
ESTABLISHED
Russ
1931
Building, San Francisco 4
The Apparatus division manufac¬
turing all
our
military equipment,
the Semiconductor Products divi¬
sion utilizing
what^ was formerly
*
Co.
Telephone EXbrook 2-7484
Bell System Teletype SF 272
Volume 188
The Commercial and Financial Chronicle
Number 5804
the parent company; we decide to
become a "good, big company."
r
1952; Decision
semiconductors.
to
(2601)
gineering beginning to show in a
major way.
A new $5,000,000
manufacture lonS needed. Introduction of sili- plant in 1958 based on a 1955 decon transistor and low-priced ger- cision.
Our first international
of
real boom — now the company
could afford staff assistance it had
transistor.
Central
1955-56; Consolidation of
Research division. Purchase of the
manufacturing operation,
posi- ^
plant
at36"
T
a
orq
p1J1of^bl?
Acquisition of Engineer- tion of each division; staffs, built
fag Supply Company. Interconti- to include men of top
nental Rubber Company merger. each key post. A leal lesson was
Acquisition of Worden gravity learned here: now we know that
"Sonic."
^.ty^fa
1959 construction.
search
plant
New Dallas
construction
PAST PRESIDENTS
1951
-
1949
52
-
1940
50
-
49
re¬
($2%
Plans
million) begun, fall, 1958.
each new division must be as comin process to build a twin to the
through fletelyjmd eapably sfaffed y the $5 million semiconductor plant.
divisionalization by product — a Parent from which it desce ded.
1956: Addition of Mann Optical,
most important basic step to make
4ua Annoimfnc
the mechanization and automation
future rapid growth possible. This n.ow a Pai*l of the Apparatus divi- in 1958.
was the year when the sales desion.
Need for Major Decisions
partment became a Marketing De1957-58: Great broadening of
partment. Growth had brought a product lines.
I think the foregoing has shown
Research & Enthat a diversified, growing tech¬
nical business, such as is illus¬
trated m Fig;
6, requires that
many i major decisions be made,
meter, business
1954:
IBA
.
.
1953; Establishment
89
Becenti-alization
'
^
series
a
rapid succession.
incorrect
are
or
:
of
If
them
Armitage
HalH.Dowar
in
S
or more
one
Albert 1*.
Joseph T. Johnson
.•
sometimes
inadequate, the
company's growth pattern
be
may
permanently
inhibited, or the
actually may shrink in
company
UNDERWRITERS
size
or, go
broke. In measuring
difficulty of such decisionmaking, the need to garner ample
AND
DEALERS
IN
the
facts
to
be
orderly
presented
form,
it
Because
in
becomes
may
not
clear that the manager
,
idly
simple,
obvious.
equally
of a rap¬
be
Specializing in General Obligations of the
growing,
complex technical
business is faced each year with
a multiplication of difficulties in
this
of California and
its
political subdivisions
connection, I should like to
review
a
the
of
State
little
later
decisions to
one
or
which I
two
SAN FRANCISCO 20
pre¬
viously referred and demonstrate
Telephone: DOuglas 2-7411
how tenuous the line of reasoning
was which led to ultimate deci¬
sions.
Teletype: SF 282
I should like to
emphasize^
too, the sketchy nature of the facts
then available which formed part
of the basis for those
decisions.
I change the subject,
somewhat abruptly, I admit, and
talk for a little while about plan¬
ning. In due course, I shall at¬
tempt to relate this to what has
proceeded.
Now,
Figure 5.
The
may
planning
process
of Texas
Instruments is viewed not only as
a
device for making an orderly
pattern for future progress, but as
management training tool of the
highest order.
Each year final
top-level planning is the serious
a
of the 25 or 30 managers
the destinies of the
concern
who
control
corporation within the policy lim¬
its set by the Board. At a con¬
venient time between early Sep¬
tember
and
mid-November,
Ifices for
an
overall plan for the ensuing
years
Their
week
five,
is put together by these men.!
joint sessions cover about a.'!
of intensive effort.
Then,
MPLETE
in late November or early Decem¬
ber, a detailed one-year plan is \
constructed
to
fit
within
the
ORNIA
broad, general scope of the longerrange plan. Laid out as a monthby-month itemization of things to
be accomplished by all company
divisions, it is kept up-to-date by
quarterly revisions and extended
for
an
each
additional three months
'
f
SAN FRANCI
fit
review
date.
These plans
strategy and tactics
by which we hope to gain the ob¬
jectives we seek. Only grudgingly
Is any ground relinquished on any
include
the
of them.
I have observed that many ana¬
lysts, in referring to the planning
process, consider it to be largely
a matter of budget.
In our com¬
pany at least, this is not so.
Itis true that we plan both capital
and operating budgets in great
detail for the forthcoming periods;
but our studies encompass a great
INVESTMENT DEALERS AND BROKERS
*]
►
UNDERWRITERS
INDUSTRIAL BROKERS deal more than these.
MEMBERS
New York Stock
]
Exchange
•
"
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American Stock Exchange (Associate)
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CALIFORNIA
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exrbook
9.0900
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OTHER OFFICES
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Angeles 14
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Hayword, Col.
New York 5
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275 N. Canon Dr.
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CORRESPONDENT OFFICES: HONOLULU, T.H., MANILA, P.!.
DIRECT PRIVATE WIRES TO ALL PRINCIPAL MARKETS
150 New Employees
Monthly
Personnel requirements, for ex-
ample,
not only
are
month-by-month, but are com¬
piled in very minute detail and
give a precise desired schedule
for the quantities, qualities, and
capabilities of people to be hired
week-by-week for specific jobs
envisioned during the 12-month
period. Since this is done by each
division, it is possible to take any
one group
(such as Central Re-
Continued
IA
spelled out
on
page
SAN DIEGC
HILL.
RICHARDS & CO.
Members: Pacific Coast Stock Exchange, Midwest Stock Exchange*
,
PRIVATE WIRE'TO ASIEL &
.
CO* NEW YORK • WIRES TOALL OUR 0FFlCS9 h
86
The Commercial and Financial Chronicle
(2602)
Continued
worked backwards from
nel
Problems of
In
Management
Technical Business
a
prediction
necessary as to whether the
projects could be brought to frui¬
tion through the medium of phys¬
ics, chemistry, mathematics, or
evolve.
search) and determine how many
scientists,
technicians, and the
like, of what grade or kind, are
to be hired, at what times during
least,
month, of
each
vided
not
hiring
for
and
kind
the methods of attack.
of the decision to
Back
these
;:
engage
.
than
;
break-even
small-loss
or
to
any
on
heretofore possible except
laboratory basis.
small scale
a
*
If the engineering and research
problems inherent in developing
the
processes
could be solved
for
manufacture
satisfactorily; and
if, indeed, we were right in our
estimates of the potential market
for
such
a
receiver:
if
and
we
could capture a fair share of this
amount
this
and that( market, then it might be possible
designed »to to bcgiii mass production of trans¬
In addition,; it. istors. a year or two earlier than
rapidly growl¬ accomplish this.
ing division and through them .was necessary to postulate that otherwise would be required for
natural, evolution
make the point that the 1954 inf a quality could
of ;these
be achieved iii the
traduction-of these two products certain of the items .thus to be markets.
'
7v7.
I
With this kind of background
was
essential to the subsequent provided which would be superior
in
basis
to pick
devices
.
for
processes
pro¬
could
be
most
our
.
•
.
vided
and
Products
Semiconductor
duced
success
planners
difficulty of the problem
probable potential success of
to
as
Plans pro¬
1958.
only
The
or
Vital
doing this I intend
two
the best estimates of the
what the capital
requirements will be. An average
of 150 new employees were added
at
sciences.
these
of
In
a
requirement
Two
strength of personnel hired nat¬
urally would be determined by
of
part
combination
other
great deal to do with the
operating budgets con¬
structed and will determine, in
budget
of
sort
some
a
land
Some
was
the year, and at what approxi¬
mate rates. This information will
have
was
person¬
thought
that
a
portable
would
have
a
through transistor radio
the reasons for establishing that limited market as a novelty, and
budget in a typical division such therefore carry a premium price
as
Central Research, let us now that would make it possible to sell
turn to one of the bits of factual
transistors on the manufacturing
level for about $2.50 each. It was
information available to a plan¬
necessary
to assume
that they
ning group.
could be produced on a no worse
jrom page 85
Thursday, December 18, 1958
.
in
of the division.-
the
the
They pro¬
with a lead
company
since.
You will
t,
.
semiconductor, field
has been retained
from
see
<*11V
titA
*
'i
-
-2'11. rl; "fj"
•'
"f*
K
fV
if
that
widened
or
ever
the
na¬
ture of the problems which beset
people, but'for provision of the in given projects lies the basic tis as managers that the decisions
space and tools for their work, concept leading into the projected by which leadership was attained
and for training in their respec¬ research,
the one which deter¬ were not to be lightly taken.
tive eqdeavors;,
mines
tV.
boundaries
the
within
A
typical
price
decline
curve
the
additional step, which work is to be done. For for
germanium
transistor
the fields of research activity, for instance, the title of our Semi¬ products
of the Semiconductorexample, must be determined in conductor - Components division Components division is shown in
advance of any of the foregoing clearly indicates that it desires to Figure
7. .» This
curve
encom¬
requirements^, Potential projects be a supplier to other manufac¬ passes only those products used
the
obviously must have been ^elected turers rather than one selling con¬ in
entertainment
industry,
sumer goods to the public.
on which thfe planning groups had
that is, radio and television, but
:
based their hopes that new prod¬
Having taken a sketchy look at it represents an average of all the
ucts or services ultimately might out planning process and having products supplied to that industry.
Going back
one
'
'
is presented
It
how
the
here
maturity
show you
to
of
-
product
a
line affects its price and, through
the flattening of the curve, per¬
I
Wholesale and Retail Distributor
-I
J
mits
of
price level of a
line of merchandise. In 1954, when
we
first
supplied the low-cost
transistors
which
*
I
4
WEST COAST SECURITIES
H
I
I
WALTER C. GOREY CO.
>:x
x*:
%
Wirt System
•—
i
Teletype SF 1011 & 1012
John C. Legg A Company, Baltimore A N. Y. C.
Troster, Singer A Co., N.
drawn
was
was
based
-
•i
Y. C.
M
radio
industry
production of
mass
radios
possible, such a
by our planners.
their
on
best
esti¬
mates ©f its ultimate stabilization
level
when
tained.
businesses
The
mates
markets^bf this
mass
similar
and
original
at¬
were
price
esti¬
made
by our marketing
people, I might add,k would not
depart too far from those shown
here
today. Probably this curve
projected for several years ahead
would show
Rust Building, San Francisco 4
YlJkon 6-2332
It
the
to
made
curve
INSURANCE STOCKS
prediction
ultimate
It
f portable
LIFE, FIRE AND CASUALTY
reasonable
some
the
a
flattening
or
if
State and
Municipal Bonds
stabili¬
zation somewhere around the level
of 50 cents per unit.
Remember
-V
U. S. Government Bonds
will,
that our first transistor produc¬
tion of any size or importance
came in late 1954.
Up to the time
of the low-priced entertainment
now,
you
transistor, 4he bearing aid indus¬
try was the most prolific source
of
orders.
Many of
sold
were
to
that
at
Ford applied to
automobile. You may
SECURITIES
member
costs
of
ated
apparent cost.
He
level
a
market
sioned
TELETYPE LA 224
Pasadena: 70 S. Euclid Ave.—SYcamore 3-4196
before.
for
Serving Southern California since 1927
.$■
curve
Wagenseller€ Durst, Inc.
Investment Securities
626 S. SPRING
ST., LOS ANGELES 14
teletype: la 66—la 35
MEMBERS:
PACIFIC
COAST
AMERICAN STOCK
PASADENA
REDLANDS
STOCK
-
have
to
(ASSOCIATE)
SANTA MONICA
were
a
go
no
at this
product. .Portable trans¬
istor radios had not yet been de¬
signed
except
basis in
a
was
processes
for
breadboard
few laboratories. Since
no
for
on
a
mass
market, the
making transistors
these markets
did
not
exist.
Therefore, neither costs nor prof¬
its could be precisely calculated
for a given level of production.
Germanium ; and
its
properties
were not thoroughly
understood,
and though we have come a long
today.
-
-
SAN DIEGO
Let's go over, now,-Some of the
which
were
known
and,
facts
more
particularly,
things which
some
were not
f
v
UNDERWRITERS
markets
the
way, knowledge of this material
and ways to handle it in produc¬
tion is
still far from complete
!
EXCHANGE
EXCHANGE
CLAREMONT
•
;
i
we are talk¬
that represents
prod¬
spring of .1954 when
In the
decided
there
-
•
example
a
problem, there
'
Teletype SE 489
Deposit Insurance Corporation
than
ing about
we
maaisob 7-5761
Member Federal
In
transistor
EMpire 4-5795
ucts.
'
Washington
Telephone MAin 2-3131
through pricing
lower
the average of a number of
"
BOND DEPARTMENT
Seattle 24,
any envi¬
retrospect this
situation may not have seemed
very complex or difficult.
How¬
ever, let me point out that in our
ANGELES—MAdison 7-1041
—
the
at
Exchange
Panorama City: 14530 Roscoe Blvd.
production and then
at
car
made his profits by
achieving re¬
duction of costs after he had cre¬
Bingham .Walter s Hurry, Inc.
Stock
his
re¬
that Mr. Ford calculated
sold his
Coast
»
-
per
Henry
early
his
Pacific
rf
thinking
of
Member
x
.
•'xr
!
unit.
To visualize transistors to
be sold to manufacturers at $2:50
each took the kind of
DISTRIBUTORS
621 S. SPRING—LOS
industry
high as $16
as
:
RST
products
that
prices running
INVESTMENT
our
of those
known.
It
BROKERS
DISTRIBUTORS
Corporate and Municipal Securities
Foster & Marshall
it
S<>'• u
Volume
188
Number 5804
.
.
The Commercial and Financial Chronicle
.
(2603T
(and
few
have
we
the
of
would
presented
only
hazards),
many
The price decline curve for sili¬
transistors
is
presented in
a
how
con
.
like to make the de^
cision to build a new plant to
house, equipment
not
yet
de¬
Figure 8. To' make it meaning¬
ful, this is expressed in percent¬
ages of the 1954 unit price rather
signed, to be operated by people
hot, yet liired or .trained, for pro¬
duction of; items for new custom¬
than
ers
you
not.
range,
was
company
the kind of decision that
jnanagers faced,
!
of
about $14. AU of these figures are
in terms of the current 1958 levels.
Limited
,
-production
transistors
The
v
;
Silicon
Story
1954.
Leaving
germanium
products
a
moment, let's talk about
It
of the
Silicon in almost incred¬
of
silicon
May,
that the
been
over
and;
many
•transistor
the
may
is essentially
nature as that of ger¬
same
curve
added in
a
steady stream to
small
original group offered
This, too, has contributed
in 1954.
tq, the somewhat slower decline of
prices, since the* new products,
,
hientv conditions; ^
Foip^thiS-and' tremely difficult, to produce....; for. a moment, let us place
reasons, ^silicon ; products
canc<)mrnand ;r 'higher ,;- market
ourselves in the position of the
prices—a life >saver:;because, the p l a n n i n g and decision-making
material- is one of the; most diffi¬ groups... in
early and; mid-1954,
cult of all to -;fabri&f£;v
when they could see the" probabil•
embark
on
.
.
-
about to
were
which would
a course
the
marketing of
mass
products at prices which it
believed would, make their
was
sales
possible,
although
costs
be precisely estimated
because, manufacturing processes
had-not yet been designed. It was
wtmmrn
could not
known
not
whether
those
that the effort could be ltiade to
become a major manufactures in
art, achieved in a very
period of time,, hut, they
Were
not enough to guarantee
that the market captured early
could
be developed
and main¬
tained, nor did they 0m any real
indication
that
expansions
of
markets and invasions) ofL other
portions of it, such a» were- to. be
developed later,, could? be at¬
tained. Yet, in 1955, it wast neces¬
sary to make one more funda¬
mental decision—to proceed with
additional plants equipment and
working, capital arrangements so
Charting the Unknown
.
Remember, they
.
major advances in the semi¬
conductor
lay ahead for these products, if
they could be made and brought
to market promptly.
new
seen
•without losing; its yalUableft.rmis-fv often for special purposes; carried
istdr characteristics as doCsr ger- very
high prices .because. they
•man.kirn imdei; quite conimoh amJ pp s s e-s s e d characteristics ex¬
other
were
short
optimistically the possibilities that
result in
manium
germanium for
f industrial;
application. ; The-prirw
teipal? .of ' these. is tlie i alulHy vtd-witlistand ' h ig-lr- -teiyqkjratines '
military
success
transistors whose price curves we
have just examined. They viewed
announced in
although the slope has
ibly pur.e form (only a few, parts been more gentle as might be ex¬
per°ihi]lion o£ itnpuiitiea cab he^ pected for a product- more diffi-1
tolerated inj translator: niahufac^ cult to manufacture. Likewise; a
tuiref 'has'.many advantages fin I great many new products have
'performance
possibilities for
germanium transistors and silicon
be
was
price decline
.
for
silicon.
Roughly, the
prices encom¬
product
.
and
marketing these entertainment
silicon transistor price is
average
our
'•■•■ ^ V..-
dollars.
passed
on
this
curve
us
from
about $3.50 to $90.
The current
books who
would. sell their products iu mar¬
kets, not yet in existence?
That
on
in
ities
in
,?pp,,T
8*
the* field.
What;
'/
...
we
see
■
:•
j•
■' /:=.;;
happening to the
company's position in the trans-istor market hi 1958 and what
will happen, in 1959 are based
entirely on the decisions madein
1952, 1*954, andi 1955.- Thiaiaeet
to say that there were not* Mai
them, but those11 have dwelled: mk
were
the* three* high paints upon
which the present
position* oft tie
Continued m,page
8Q
r, v. - T,p,pj;r~ 1
-
proc¬
would give a
esses
high-percent¬
age yield of satisfactory products
at the end of assembly lines, or
whether the percentage of usable
products would be low.
It was
not known what
market could
deed,
be
percentage of the
captured, if, in¬
major market
potential
a
existed.
;
It
reasonable, however,
those scrambling for
seems
that
among
markets
the 'manufacturer
who
"got there fustest with the mostest" would be in the best position.
It could not be foretold how
the
market;
would
developed
were
long
if
endure
over
it
short in¬
a
itial period. How well would the
public like the product
How
much of a premium would it pay
for
portability and novelty? How
Well
would
the
manufacturers
who supplied the consumer items
like
to
them?
with
work
they make enough
Could
to en¬
tice them to continue beyond the
novelty stage?
How fast would
money
among
manufactur¬
arise, and how muqh of the
competition
ers
ultimate
few
could
market
of
our
com¬
These were only
retain?
pany
a
the
problems that faced
the group whose ultimate decision
was to go ahead and "devil take
the
the hindmost."
To
sum
the top
now,
up
agement decided to enter an un¬
known market with products not
fully understood either in their
manufacture
undertook
known
to
their
in
or
these
sell
for
customers
the ultimate
dream of, nor did
manufacturer then
use.
to
of
un¬
that
uses
the equipment
have
For Prime Distributions
It,,
did not yet
consumer
All
Rocky Mountain Securities
much
a
clearer
concept. It took the risk
pricing that product, estimating
profit, making a substantial
outlay of capital, and, indeed,
Both
of
its
staked its entire future
on
best advice
man¬
the
Municipal and Corporate
Call, Wire
or
Write
re¬
sults.
the
If
effort
how¬
succeeded,
to be gained
capture of a single market
for
a
few
new
products.
The
know-how gained in mass pro¬
ever,
there
was more
than
QUINN & CO.
duction of hundreds of thousands
Members
of units could be carried over into
New
American
York Stock
Exchange
Stock Exchange
other
(Associate)
products of similar nature,
Albuquerque, N. Mex.
•
'
l
-
1
♦
Farmington, N. Mexico
Santa Fe, N. Mexico
Gregory & Sons Private Wire System
overhead
could
be
staffs
being
Coughun
SECURITY
BUILDING
Telephone:
AMherst
reduced, and
be ready
to handle still larger orders
if
they could be secured. Competi¬
tors would have to develop com¬
parable know-how and facilities
out of capital; TI might be able to
do it out of profits.
the
future,
agement
transistor
MUNICIPAL
BROKERS
AND
STOCKS
-
DEALERS
were
BONDS
they
had
the
fee Co
MEMBERS
.
MIDWEST STOCK EXCHANGE
DENVER
•
'
Underwriters & Distributors
of
the Giants"
decided
field.
large
in
in
1952,
INVESTMENTS
man¬
to
enter
the
Already
there
companies
this
industry,
es¬
and
Local
facilities, and
manpower already in being to at¬
tack problems as they arose. For
many
GarrelMlronMd
Back
many
tablished
CORPORATE
DN 296
would
in
"Battle With
INVESTMENT BANKERS
Teletype:
6-1981
Members Midwest Stock Exchange
Now, let's look once more at
the past before trying to peer into
UNDERWRITERS
Company
&
DENVER 2* COLORADO
•
of
Securities
a
Specialty
them, the adventure in
transistor
tively
Municipal & Corporation
money,
small
field
one
was
and
a
rela¬
would
not
Phone MA 3-6281
have implications of major import
whether it
was a complete failure or an out¬
standing success.
In the battle
with giants,
all the odds were
against the newcomers.
Then, in 1954, entry into the
mass market was made by induc¬
ing a radio manufacturer to go
ahead with TI's products.
A sec¬
ond step ahead was the introduc¬
one
tion
way
of
or
another
silicon
transistors.
These
Peters, Writer
&
Christensen, Inc.
INVESTMENT SECURITIES
THE PETERS, WRITER A
^
f
CHRISTENSEN CORPORATION
LOVELAND,
mewbtft
COLORADO
MIW YORK ST68K EXCHANGE
.
AMERICAN $TQCK EXCHANGE (Associate)
724 seventeenth street
nnnt,:
colorado
springs
Financial Chronicle
The Commercial and
...
Thursday, December 18,1958
(2604)
88
for their own
they may compare the
performance of these divisions
against
standards
and against
competition. We have seen how
great the effect of only a few
been vested; and so,
87
Continued jrom page
purposes,
Problems oi Management ,
In a Technical Business
company
let
well may rest in this
me
speculate
analogous
on
problems of the managers
field.
morrow
of to¬
based on what we
have
has
variables
been
on
our
own
I
have told
operation up to now.
If
these are multiplied many-fold, as
research,
they would be in a company of
large size, then, it can be under¬
stood how difficult the work of
the central corps is. Add further
means
modest
time it sefms
well for most
McFAUL
&
INVESTMENT SECURITIES
that top
Because of our very
Portland 5, Oregon
American Bank Bldg.
to be working very
companies. It does
management
staffs to an increasing extent in
technical companies will be com¬
posed of extremely high level peo¬
ple if the companies are to suc¬
ceed. This is particularly true if
such management is to be able to
envision
technological opportu¬
nities ahead of competition.
clear
seem
rapid tech¬
nological progress, we are prob¬
ably
scheduled
to be snowed
products and
There
tremendous backlog of re¬
under
with
new
mathematical
so
himself knows them.
of the
Aid
Pacific Northtvest
DISTRIBUTORS
V*
CJ V"/U\| £J £/
CORPORATE STOCKS & BONDS
•
MUNICIPAL BONDS
SINCE
-
U.
S.
BANK
BUILDING
,
we
hope we may be able to
in¬
many items to handle, deci¬
sions to increase or decrease
quantities have in the past been
rule
a
on
That's
With
placing
other
routine
this
functions
ment
etc.
cycle,
that
if
In
were
event,
any
be
could
inventories
item-by-item basis instead
achieved—to
on
long procure¬
control
of
ideal
a
—
desirable.
found
the
against
up
an
in the
mass.
for
Better
manage
How long we've
that!
advanced
through
planning
proper
proper
programming
such information fed
under each set of
with
and
in, the com¬
results
V
conditions.
or
unlisted,
Direct wire to 46 Correspondents.
Zilka, Smither &_ Co., Inc.
INVESTMENT SECURITIES
machines
of
for the
accounting,
simpler machines.
TELETYPE
813 8. W. ALDER
PD
tion
than
will
it
No longer
such a
previously.
be
necessary
for
to go to his investment
banker, or an insurance company,
for long-term financing without
first having
acquired a precise
knowledge of what he will want
and need.
I can't help thinking
manager
he
that
will
also
idea
of
have
a
what
pretty good
form
that
He won't
of
be thinking in terms
balance
a
sheet and operating
statement" that
are
a
month
potential
155
•
1929
PORTLAND 4, OREGON
It takes a
Teletype PD 280
capabilities
rlK91
NATIONAL BANK
OF
OREGON
COOS BAY
or
old, but rather of one that
was cast yesterday and of one for
tomorrow, He may ask for financ-
more
operation of a modern com¬
its
fi¬
should take, and what
price he can afford to pay for it.
nancing
EQUITABLE BUILDING
PORTLAND
MEDFORD
for example,
problems,
a
INCORPORATED
Bell System
these
good deal more sophistica¬
with
ESTABLISHED
of time to understand
more
will view their fi¬
BLANKENSHIP, GOULD & BLAKELY
PORTLAND 5, OREGON
•
managers
nancing
that
assumed
Pacific Northwest Securities
Member Pacific Coast Stock Exchange
EUGENE
be
also
can
we
complete service in trading, information and
•
much
business
their
erate
expertly than at present, then it
productive
up operations, but do not
anything fundamentally very
earlier
puter,
SALEM
as
^
to en¬
these,
which should enable them to op¬
same
supply,
practices such
in
gage
statements, as de¬
sired, of conditions.
Prmt-outs
could be had only when
items
were in trouble—in short or long
monthly
payrolls,
sorting and
classifying, and other chores in
which they may reduce errors and
the
6-6421
If business managers are
great number of items can easily
be controlled with daily, weekly,
or
figures.
Financing Problems
handling
great deal
CApitoi
sult of analysis of these
money.
or
however,
computer,
a
and what actions to take as a re¬
general¬
could
or
all that
time
in
afforded
be
thumb
of
basis.
ized
in their respective
fields. A very high percentage of
those now in use are merely re¬
and
TELEPH0NE
nearly so formidable. It "will,
however, require a good deal of
intelligent sorting of the facts and
figures, and decisions on which
are meaningful and which are not,
so
different from the work of
executions.
culean, but tomorrow it will not
be
ventory items in our own Engi¬
neering Slippy Company.
With
make progress
do
a
example, using the best judgment
at hand, make an estimate of whateach major competitor in a given
field might intend: doing in the
coming 5 years, and survey-the
inter-action of such performance
on one's own business? In the past
such a task would have been Her¬
by
able technical
man and
his staff there will be
electronic data processing systems
which may be applied to business
problems—automation in business
PORTLAND 4, OREGON
deal in Western securities, listed
one's
moment
a
one's
business, then also it could
approximated for the case of
competitor. Why not,~; for
be
with control of the 30,000
do
speed
maintain
for
examine
Let's
what
puter would give tentative
of Automation
1927
CApitoi 8-1318
If you
handling
data
anticipates most
7,'
could be done for
If this
own
application of statistical analysis
to great masses of data. Problems
such as inventory control, for "ex¬
ample, can be greatly simplified
by this means.
processes. Computers as we know
them today are only beginning to
INVESTMENT SECURITIES
INVESTMENT TRUSTS
in
is
research
re¬
foreseeable hazards.
operations
of
phase
which
course
a
programming, a form of
operations research, provides the
means
for finding the optimum
solution to many business prob¬
lems from mathematical models.
Linear
Another
the
reviewing
sults of these alternatives to plot
time
the
of
because
management
economically
consumed.
could not be solved
To aid this very
procedures as well as
13
representing the most optimistic,
the most pessimistic, and the most
probable occurrences in the busi¬
ness for the period ahead, it then
should be much simpler for-a
a
of
complex problems that previously
waited
consumer
DEALERS
to
capable
model
fed into the machine information
business
a
detail
;
Because the computer
swiftly, one can tackle
analysis.
works
its
all
in
programming of
an adequate computer is possible,
The new manager must be the too. By this I mean that we can
one
to foresee the opportunities
except
to run through such a
for creating markets through the machine a series of sets of infor¬
application
of
these advanced mation representing hypothetical,
technologies.
Indeed, he should expected business conditions over
be able to visualize a consumer's a
period of several years.
With
needs and desires long before the
Teletype—PD 254
UNDERWRITERS
reducing
of
of
search,
development and engi¬
neering which has not yet been
translated into finished products.
Specialists in Securities
.
the
which,
in simplified
considered to be a
problem
is
Bell
of
terms, may be
services in the near future.
a
few
a
which tomorrow's man¬
agers may simplify their lives by
use of these machines. First, there
is the rnuch-talked-of operations
know why I
HESS
examine
in
ways
.
at
^
,.
Let's
For example, we could look at
hypothetical
monthly operating
statements over a period of years,
based on assumptions of capture
of various percentages of market^
of desired percentages of profit,
of estimated projected cost re¬
duction, on the use of money at
predetermined rates, etc. Having
in which it should
areas
used.
be
my story well
learned here.
^ y- V, V ;
this point you will
growth to the present size of large
wanted to tell it. The
Problems of Tomorrow
corporations and you have an al¬
technical difficulties; the com¬
most frightening picture of the
Decentralization of medium and
plexities; the terrifically heavy
overwhelming
masses
of
data
overloads, both mental and phys¬ large-size companies has been a which must be gathered, assimi¬
ical,
imposed
on
management great help to management in the lated, simplified and reduced to
people; the agonizing burden of past because it puts decision¬ their lowest
common
denomi¬
endless important daily decisions; making responsibility as close to
nators. These then must be pro¬
the delicate questions of all-im¬ the job as possible—right on the
jected into the future as tentative
portant timing, seldom clearly de¬ man who has to carry out the de¬ marketing concepts and tentative
But in a company with
fined in black or white; the need cisions.
plans for submission ! to ■ execu¬
to hire and train increasing num¬ many divisions, the business of
tives
to
decide whether, these
bers of new people; to review pulling all the operations together
plans contemplate reasonable risks
into one coordinated whole is dif¬
procedures; to find new markets;
and satisfactory reward possibil¬
Where technologies
are
establish
new
divisions;
meet ficult.
ities. Will there be other means
competition; find
money
for advanced and complex, the people to cope with such problems? If
working capital, to grow, grow, at the top must have a good grasp
so, what will they be and what
grow—these and a hundred more of each branch of these technol¬ tools can be found to assist in the
were
the
hurdles to be
sur¬ ogies so they may make intelli¬
handling of them?
mounted. No one is prouder than gent decisions as to the lines of
Up to now management always
to
be
continued, ex¬
I that our youngsters could do it. business
has been able to analyze its sit¬
If it
were
not competitively panded or dropped; so, with in¬
uation and find a method of cop¬
telligence, they may measure the
dangerous, I should like to tell
ing with it. In a changing world,
performance of the division man¬
you in detail about our plans for
decentralization may not be the
the next five years. Failing this, agers in whom responsibility has ultimate answer, although at this
If
enough,
the
and
'
Volume 188
Number 5804
.
.
The Commercial and Financial Chronicle
.
(2605)
ing to handle products difficult to cation, most of it for young people This is most easily achieved when
to come, ill the schools and coj- understanding exists on both sides,
at the time, and the invest- leges of the future.
1
To get it I fear even those of us
ment banker will have to give him
When manager and banker en- who are oldsters must pursue our
an answer based on his own thorgage in a transaction, mutuality education for all our remaining
ough understanding of how such of interests brings the best results, time.
financing will work.
Thus, it
T'-' V ;
"
understand for. markets honexist-
-
X:" 'a-
ent
.
:
.
->
;
;
seems
IBA
1947
-
PAST PRESIDENTS
1946-47
48
1945
-
46
'5 'I '
«*•".
that I have stirred up
me
jtny,
own particular, little
nest today, and instead of
hornet's:
present-;
Ing to you a' neat; bunch of prob- r
lems all neatly died! together and;
solved, I leave you with one.
*.
:
-
to
V'V'Kv
■
.
SeciiMlfesSafesmai^s Corner
By JOBN VD1TON
I believe the investment. bank—:
ihg profession and financial peo¬
ple will have their, . own; rapid
.
"r
AJth°"^ this week's theme will should be (expected? Will bonds
.
needed.
However, I likewise
will need to forge
strong links to the businesses they
finance, and that these links should
are
thlnk that they
Ka: terfiniral
a^
Who
comnedent
technical
Ground*
to
manaeer
own
the
meet
his
on
own
discuss his nrohlems with
there
hiirt
of thpir
bonnie
-
him
educate
the
to
orfmiems of the investment banker
S S
Be
salesmanship. Here goes then:
?
the
They plan their
You don't find the
top
in this business
men
at
waiting
be
much better done if bankers had
until the morning of a bond sale
before they sit down at their
already been simulating the
erations
of
their
own
of
the
their
with
'■i
all
this would
clients'
own
staffs.
op-
*han 50,000 to 100,000; does this
^ issuf Vqualify on this or any
of tke0
re?ulFe~
ments. '.Why offer bonds to m1fchAt^ ?hem? It wfllUonlv
computers
and to
emphasize, however, that renting
a computer and hiring or training
programmers and operators is not
enough to get the job done, Some
of the investment bankers
puters in the ways in which they
can
realize their true potential,
such effort would be fruitless,
:mi
.M o,«...
w
the first few: customers that
mind. They prepare their
come to
work ahead of them.
Ahead
them- :
selves must be technically trained
and understand how to use com-
or
^ ^^ncfficmnt bond
cnftnmPr'«
^actp
First
a
study
undertaken
of
what
elie.^?nd P-Pec«t have
aond
a
secured
general
by
hiivpr<f
Several days before the offer--,
many bond men make a list
the new issue. They send prelimthe bond is inary circulars* sometimes with a
determine
to
rieht
p,rospfCu71buyers whom they
thmk might have an interest m
*
^ssue-
nfW
^on^Snd^n
th® wronS bonds to light buyers,
.
PwAnarotinn
in
Vnnr
^J
business perfunctory calls on the telephone
I should like to
E.
revenues'or
obligation?
Will
is it
it
iva.vK
be
Charles S. Garland
Hopkinson, Jr.
i
panies that will only buydn large
n° IP tem,
desks and proceed to make some
believe
Julien H. Collins
made some men stand out as top- for revenue bonds and others who
flight bond salesmen will work if will only consider general obliapplied to any phase of security gations. There are insurancWcom-
work.
.
Technically Trained
I
tail of all classes of securities. The will not buy unrated bonds; others
underlying principles that have that will do so. There are buyers
they work at it.
'
Investment Bankers Must
!js
w
suggestions^ presented can apply hanks might be interested, . What
M0**16 distribution atje- institutions? There arepeoplewho
The reason some men sell more
bonds than others is first of all
ate fw both.
;;
be devoted-to the sale ol tax ex- be available m maturities attracand corporate bonds, the tive to cei^m acrounts? What
P^nal iT®,8!™ pointing
& the
of^the
that they will telephone the offer-
stands today at 225% of pros in this business sell. They
maximum debt service, including marshal!
their
facts, ; they; sell
the new issue. In addition, he has themselves first, and then they
compared the offering scale with makl their offering* in an organ¬
similar
bonds
available: in
ized manner to a selected group ot
position prospects whom they believe may
to back up his offering with price be interested in their particular
facts that convince the buyer that security.
: ■? "?,.■• ^ j- '■? -v •;.r
'
The more you know—the better
the bonds are priced right,,
•
P
you will sell.
•1;:!■
Way Pros Do it
now
the market and he is in
a
■
Each bond has a personality of
its own. Every bond has certain
features
that
makes
E7H.SUm&CatbA«hyfc
On
different
it
from every other bond. Find the
best points and build your offer¬
Robert
23
Dec.
L.
Oscher
will acquire a membership in
New
the
Exchange; and
Stock
York
presentation around
them.! will be admitted to partnership*
Stress the most appealing feature;
in E. H. Stern & Co., 20 Bro^d
first and bolster it 'with other
ing
Street, New York City, members
salient points that make the bond
attractive.
That is the way the
of the New York Stock
Exchange.
mg prices and the scale as soon as
jssa^«san-s8.
public.
have
If the issue is likely ; to
strong appeal for certain
a
buyers, they will even telephone
several
Dealers
Underwriters
Distributors
Municipal and Corporation Securities
days in advance of the
offering, mention they are send¬
ing a preliminary circular, and
suggest that the prospective buy¬
er might give it special study* and
set forth a few highlights which
they consider particularly strong.
Then, when the offering comes to
market, they have their list in
front of them, telephone numbers
and addresses ready to go, and
they have a better chance of sell¬
ing more bonds for a very simple
reason—they are offering them to
the - people who most likely will
want to
The First Cleveland^
Corporation
Member Midwest Stock Exchange
■
back to the same few old stand-
bys who once in a while are in
National City E. 6th Building
Underwriters and Distributors
Of
Municipal & Corporate
Securities
1556 Union Commerce
HOT Union Central Bldg.
Bldg.
-
CV 444
Telephone PRospect 1-2770
Telephone Main 1-3776
ing them going for many years in
a piece-meal sort of way.
Teletype; CV 443
j
CINCINNATI 2, OHIO
CLEVELAND 14, OHIO
the market and have been keep¬
CLEVELAND 14, OHIO
Telephone; PRospect 1-1571
ESTABLISHED 1908
buy them.
They are not trying to catch a
fleeting order from a haphazard¬
ly Selected list of prospective
buyers, nor are they always going
o.
lenaras
ie
Teletype—CV 174
Teletype—CI 197 & CI ISO
j
'
J
\:
know their bonds, and
they sell
better, because they
know how to show their customers
They
why they should buy now.
bond
The
bonds has
some
DEALERS AND UNDERWRITERS
a bit of art if you
You won't find that he will
.
CORPORATE AND MUNICIPAL BONDS,
dunk
PREFERRED
STOCKS
Water
Revenue
3^s
SPECIALIZED—PROMPT
CLEARINGS
this
morning, they are mighty good
bonds, priced right from a 2.80
out to
We
a
think
Established 1914
New" York Stock
Exchange, Midwest Stock Exchange
American Stock Exchange
(Associate)
Union Commerce Bldg.
Cleveland 14, Ohio
they are very attrac¬
-
ligation of a superbly managed
water system in a very stable and
growing community. Its general
obligation debt represents one of
the
lowest
ratios
to
assessed
of property:
its size and
MAin 1-7071
Correspondent: Clark, Dodge & Co.
the state.
of any city of
"*
i
Pittsburgh
-
'
Chicago
.•
-
\)
-
Clevdaidf
|:
Address Loans and Securities De¬
partment
us
itLPAf on
Teletype: CV 240.-
Bank Wire: NCLV.
OHIO'S LARGEST BANK
The net water revenues
for
despite the
.attendant, expansion of the syssteady
■
comparable growth in
securing the bonds have shown a
New York
'
his
preoffering study
has
shown
him
that
Podunk
Water Revenues represent an ob¬
value
.
We clear for dealers in New York
-Toledo.
Instead
CURTISS, HOUSE & CO,
'
;
3.70 in the last maturities.
tive.
Members:
DEALERS
SECURITY
again and again like
this, "Good morning Mr. Thomp¬
son, this is McKinnon of First Se¬
curities, we are offering some Potelephone
IN
AND
who knows his
presentation,
will.
COMMON
man
story to tell. He puts
imagination into his sales
a
increase
in
coverage
the past 10 years and
Assets Over One Billion Dollars
j
'V:
'"/
i
.
90
The Commercial and Financial Chronicle
(2606)
does
it
than
Continued, from first page
be thankful for the
of
family
a
three."
\
We See
It
members, but there is no par¬
ticular reason to expect
the larger part of the program
thus suggested to be anathema
ers
doc¬
are
"mature
ers
the
ardently preached
trine that
paragraphs make it
enough that these lead¬
clear
ours was a
Byrds in
With
Montgomery, Scott
the Senate, and for such
in<p; PHILADELPHIA, Pa.-Montof influence as
Rayburn in the gomery, Scott & Co., 123 South
Later
As
Thursday, December 18,1958
...
House
and
Democratic party Senate.
And tnere
in truth the type of spend¬
Ana thrrr
Johnson
the Board
in
about which the President whatever
can
can
Street,
members
of
the
New York Stock Exchange and
-other fading exchanges, announce
of the
hp n° HnuKt
oe nn
Michael A. cnuse has become
many, -many associated with their Philadelphia
the D^6oraftit";'dffic^ as a" registered ~ representa-
that
,
economy" in which no further has recently warned the coun¬ members of
Take these sentences: party are itching
J
growth of consequence was to try.
to southern tnembers in gen¬ be expected, is now much "T h e Administration's a t- the Federal
concerned with what it is able tempts to stop the Federal and to end forever the really the securities markets : and has
eral. ;
; '
from
assisting quite moderate restrictive in-r conducted classes in variousparts
to convince itself is an almost Government
The Democratic Program
catastrophic slow-down in the states by vocational education fluence it has been exerting; bf thfeeity and subnrb?:on invesjtThe electorate would do rate of growth of the economy programs should be opposed. in behalf of financial^
|
well to give very careful study under the Eisenhower Ad¬ These programs are particu¬
f^'^}j sa™e>
Course®.F. Lafferty Admits : 5
to this document with a view ministration. Of course, there larly important in the rural said of : any part;.that .,tjie
„WaIWs. j. Gardnef, Jr.on Ddc.
to determining
in advance is not much support for any areas in which there are dra¬
what the Democratic majori¬ such notion—certainly no evi¬ matic changes in emphasis
ty it so enthusiastically voted dence of it in the figures cited and ways of life, and where; easy conditions in the, m^oriey ^orf £jt^: '-2,em'3ers
the New
into office this year reallyhas to prove it—but real or imagi¬ as a consequence the young market and investment'inar-^
F
^ Exchange.
■
-in mind for the coming Con¬
ket of the country. tei4t>emnary it constitutes a basis for people must be provided with'
Openslnvestment Office
gressional session. To say that a far reaching program to help and training to meet the ocratic Advisory
Council:^ .miami; Fla—Ruth M: Cologne
it rings with Hew Deal ideol¬
speed up expansion in the challenge of these transitions SO in sp.many WOrdSj aim itIs^is jengagjijg in a securities busings
in our rural economy.
common
ogy and New Deal proposals years to come. "Government
knowledge tnat ^ ;iram;~_Qffices..at. 227 :-Northwetet
"A Federal scholarship pro¬ numoer nf -members nf hAtif Eighteenth Avenue. Jtfiss Cologne
is to put it mildly. The often expenditures," they tell us,
ritim'her oi mrmhrrc ...pi.
potii, wa? formerly witll FjsnK L. Edenrather demagogic excoriation
"keyed to our vital needs and gram to meet the truly great houses of Congress have Jdrtg field & Ccr. and Francis ii, du Pont
of die Administration ahd Re¬ resource
capabilities, are in challenge facing "the United Wished to have a lick at the ^
v;v
publicans in general is, per¬ themselves a key factor in States during the next ten
Reserve authorities and any
Donahue & White Opens
haps, to he expected upon maximum economic growth." years, as the number of stu¬
such an occasion—as is also A moment later it adds that dents eligible for colleges and sort of restrictive action
any^4 Donahue & White, has been
the highly dubious employ¬ "the amount and purposes of universities more than dou¬
where, any time. Th£ dauger. i&rmed; with offices in the Grand
.v
J
Central Terminal Building, New
ment of statistical techniques.
government spending must be bles, should be promptly es¬ of inflation is dismissed, with York City, to engage in a securiPut what does this highly in¬ determined by wisely balanc¬ tablished.
a foolish Statement to ihe ef- ties business: Partners are Joseph
"We favor a program of
:±:- G.
Donahue and Dougald
C.
fluential group of party lead* ing needs and capability. It is
believe that their party
Federal assistance to the states iect .thatthe main >'key *to^ White. Mr. Donahue was formerly
elementary that a growing
effective inflation; cohfrbl:
for school construction."
with Bache & .Co. and King Mershould douto save the countjy nation needs
larger public as
.i?
^
ritt &rCo.; Mr. White was With
from the acts of an adminis¬
sustained ful 1 employrnen.t Granbery, Marache & Co., Fiisst
Again:
well as larger private expen¬
tration which it so vehement¬
"The need is urgent for an and full production, combined Investors. Corp., and, Fond Reditures, just as it costs more
\
search & Management,.Inc.
ly denounces?
enlarged program of hospital with truly competitive pric-.
v
^
)
Well, the party which once to support a family of five
construction, and for loansto
ing."
Stern & Kennedy Partnei*
local
comprehensive health
The President and all modOn Jan. 1 Stanley J. Rodi will
insurance cooperatives. ...
prater m
tn what- ac(luire a membership in the New
erates in
congress to wnax- yprk stock Exchange and will be
There must be steady effort
to increase the funds and re¬ ever party they may belong admitted to partnership in stern
sources available for a broad havp fVipir wnrk rut nut fnr & Kennedy, 25 Broad Street, New
nave tneir worx cut out tor
Rese^ ;^1
7
,
-
-
,.
,
,
....
.
_
.
•
-
,
ii
,
i
-
iL
#
-
York
program of medical
and rehabilitation."
Mcdonald & company
research
In the realm of social
them this Winter.
city) members of the New
Exchange,
;
York Stock
,
secu¬
rity (in behalf of which the
Government has
Federal
UNDERWRITERS AND DEALERS IN
al¬
ready commitments which
CORPORATION AND MUNICIPAL SECURITIES
into the hundreds of bil¬
run
Joseph;Mellen
lions) these increased benefits
must,
vided:
MEMBERS
New York Stock
so we are
told, be
pro¬
Ameflean Stock Exchange
■.
UNION COMMERCE BUILDING
CLEVELAND 14, OHIO
And
more
of the
same
"New
credit
sources
Co., Inc.
STOCK
Aid Investment & Discount
EXCHANGE
electric
Jack &
Brtuclpt Beryllium Company
Cantrpl National Bank of Cleveland
Heintz Inc.
National^City Bank of Cleveland
National Screw A
Manufacturing Co.
CJ»«wl»n4 Builders Supply
North American Coal
Diamond Portland Cement Co.
Northern Ohio Telephone
Ohio Leather Co.
Cleveland Trust Company
Cook Coffee Company
*
'
Union Bank of Commerce
M. A. Hmum Company'
Manna Mininf Company
2
DC
• FULTON REID&
U. & Truck Lines, Inc.
Statistical Information Available-Upon Request
i.4. f
t
«
T
of
5
increased
and
atomic
z
>
resource
</>
development, rural electrifi¬
cation, area; development,
housing, and airport develop¬
ment, are other4 fields which
are listed as needing generous
attention
from
.
c
z
p
V
X
Fulton Reid
the. national
government.
And,. for our
part, we are confident that
when
men
of this mind
&
Co.,
Inc.
tn
to
get to
1612 Union Commerce Bid?., Cleveland
14, Ohio
Trading
MA 1-6800
Dept. CV 67
Municipal Dept. CV 865
BRANCH OFFICES:
Canton
•
Dayton
•
Columbus
Washington next year
other outlets for public funds
will be thought up. This
group,
<
this influential
group
in the Democratic
•
Youngstown
party, are
"spenders" incurable. We may
well have additional
reason
to
to
•£■
y>
•
work in
Telephone
0
CO.,INC. - INVESTMENT SECURITIES • FULTON REID & CO.,INC.
vo
O
point unduly? Many more
EXCHANGE
<
Higbee Company
Inland Homos Corp.
American-Saint Gobain
American Vitrified Products
-Mansfield. Ohio
St.y Vermilion, Ohio
and
areas
MEMBERS
YORK STOCK
West Liberty
spending
are
listed and urged.
Agri¬
culture, conservation, hydro¬
(Established 1924)
NEW
the
301
>
equity c a pit a 1
opened up for small
business," too. But why labor
&
25 Broad St„ New York, N. Y.
427 Glessner Ave.,
of long-term
should be
Merrill, Turben
Building
Cleveland, Ohio
sort.
And Small Business, Too
MH>WEST
1170 Union Commerce
"Hospital care for 50 to 60
days per year.
A limited
amount
of nursing service.
Increased monthly social se¬
curity benefits — 10% as a
next step and another 10% in
the next three or four years."
(Associate)
Miller, Inc.
INVESTMENT SECURITIES
Exchange
Midwest Stock Exchange
&
•
O
O
H-
<
z
o
1186 UNION COMMERCE BLDG.
TELETYPES
CLEVELAND 14, OHIO
Corporate Dept. CVS 3
Telephone: CHerry 1-1920
Municipal Dept. CV613
PAINESVILLS, OHIO
FORT WAYNE,
INDIANA
v*
to
09
c
O
ac
'to
o
FULTON REID * CO.,INC. * INVESTMENT SECUtfTIES • FULTON REID & CO.,INC.
(A
Volume
Number 5804
188
The Commercial and Financial Chronicle
(2607)
91
vV''
.<■
1960.
Utility Securities
..
...
15%
the
of
be
output.
IBA
pressurized
a
the power from
which
relatively expen¬
sive. The company is also a mem¬
ber of a
group which is doing
reactor,
may be
1943
-
44
-
PAST
45
PRESIDENTS
1942
-
43
1939
-
40
-
41
'
.
C onnf cticu^^'Iii^T
-
to
will
and
Unfortunately, this is
By OWEN ELY
—i
Yankee
water
Connecticut Light & Power Co.
k':
in
entitled
Public
■
CL&P is the second ^largest
investor
-i-'i
——
•
"
-
"
re
r*
.
ta
kktr.4
" "
,*■?«»?* wwv-.il-.'*"
.
««
vna-n. *•».
':<■«*«-***
1
.»\v"a
• •<:
•
irr
•'■aKs
»
%
-
.
pro-
1-60
Some
year
about $42
is
the
1957,
million
common
basis at
sub-
a
In Janu-
!%% bonds
bank
„
.......
,
<r.^,
t
,
%
other
utilities).
completed
,
mle (
a
:kwunitafitsi Devon steam,
;...
,
plant
in
September this year.
.
loans
Substantial
r.
part of capital expenditures.
vTh
company>s earnings record
has been
John Clifford
Folger
Emmett F.
JayN. Whipple
Connoiy
sta£ility
b
and
Connecticut- is: known as-a "ma- ;?«*■ The company, had already
be-Modest' growth. Share earnings
chinery" State along with copper gun construction on a 150,000 kw
increased from 86p in 1948 (adand brass products, transportation unit
atanew power plant at Nor-,
justed for a 4-for-l split in 1950)
equipment, rubber products; etc;: walk Harbor—it will be the largest i to
$1.36 on average shares in the
While there* was some moderate steapi unit, in New England when 12! months ended
Sept. 30, 1958.
setback in industrial:activity as : it
goes-into operation in 1960. The
However, current earnings probthe result of the recerit
recession, Norwalk Harbor plant will be lo- ably include about
150 for tax
a
number of nationally
known, cated on Manresa Island, and use
savings resulting from accelerated
corporations have been building, of this site for a plant has been/
depreciation,
sizable new plants in the service in litigation since 1952 with the; ;, «
„•
.
^ f vp_r_ bav_
CUy °f
,.
.
„
Nm'WalkH ^owevpr, the
'
aTd eorp-Knox Glass and United
Aircraft's
Hamilton
Standard
^Vi?l0rk
The,
,
from
cision
f6nS ^
i
company.,is.; ateo jpi fcxeeL..vtP condemn
lent condition to benefit from the tional use.
,
the
Court early this
State
year.
Various
Supreme
Also, cit-
,naH
growing at
^"each
> P^'Posal
the ^island, for reciea
which
•
arpa
verv
&
Sage & Co. to Admits
Co., 25 Broad
Sage &
Cp.; l,W$dl Street, New
Street, New York City, members York City, members of the. New
of the New York Stock
on
Dec.
23
will
Bland to limited
York Stock
Chester
Exchange,
will
Exchange,
admit
Sally Larsh
Dec. 29
on
Wreszin
limited partnership,
to
partnership.
admit
™ 1952-™
of thefouis
1957 there
reduced
MUNICIPAL BONDS
drought
output to
was
a
hydro
63% rof normal and cost the
com-
CINCINNATI BANK STOCKS
$555,000 for additional
pany some
coal
V»W»fWWS/»WMSWss/sss//s/s/sssssssssssssss/ssfsssssss//,ssssssfsss,ss,/ssssfff/ssfffs/,/f/sssssss/. \
wprp
to
generate steam power,
Despite recession effects on indus-
population is•; erating plant in which left-over
rate well above.the'heat from production of electric
•;
.
t
*
J'-.-
*
■
,
#
■;,"J
■.
■'
■
•
■
■£■
^
'
**:■- /,. '»*
*
average.
the Stater
^veralJndustriaf^uB-.
iWui&ShS®'"
1957, which should provide,® sub•
Pizzini
storms
severe
trial operations, 1958 is showing
The new Con-. power would be employed to con- a
good comeback (after & dip in
necticut
Turnpike, opened
last vert salt water to fresh water, 1957
due in part to the large stock
January* is expected /to baye im-t basqd on a process developed by t
issue) : with earnings of $1.36 for
portant accelerating affect - oi\ d e- Maxim. Silencer Company, t$ub-the 12 months ended. Sept. 30 vs.
Velopment of the eastern part of sidiary of Emhart.
.•
$1.22 in the previous period, both
national
-i.
fh
bv
Also in
State's
a
of
h„ffeted
-The company tfs- making a joint
vjnove/ is'-likely to be-hioreino-.: study.', with Em hart
Manufacturing
nounced
in
Connecticut
in
the, of a design for-a new steam genThe
W.
doubtless been retarded by the ef-
trend from city, to suburbs,.which
future.
B. W. Pizzini to Admit
B.
Connecticut 111 & P. is also
figures being
as-
sociated with other New England
utilities
in
P^^lha^^sejn gas busm^s^y. ^Yankee
;
the; construction
on average
POHL & CO., INC.
shares.
414 Dixie Terminal Bldg.
a The stock has been quoted recently over-counter around 231/>,
of
Atomic Electric's 134,0(X)
and based
The company at the end of 1957' kw Nuclear Power
plant in Rowe,
'On
the current dividend
CINCINNATI
Phone—MAin
(2), OHIO
1-6515
Teletype CI 381
rate of $1.10 (recently raised from
The price-
■
■■
v;
v
earnings ratio works out at about
17.'
.
Copley Adds
to Staff
(Special to The Financial Chronicle)
COLORADO
Seasongood <S* Mayer
OF
dependence Building.
INVESTMENT SECURITIES
With Columbine Securities
.tfa-'A'.■:.--io.-.v-*
f/
DEALERS and DISTRIBUTORS
SPRINGS, Colo.—
William N. Sharp has been added
to the staff of
Copley & Co., In¬
i..,v ■,v.'A-"1-.
MUNICIPAL BONDS
(Special to The Financial Chronicle)
OUR 71st ANNIVERSARY
DENVER, Colo.—Carl F. Dixon
is
Established 1887
with
Columbine
Securities
Corp., 621 Seventeenth Street.
BOND
DEPARTMENT
ul
...
204
'
.
Ingalls Bldg.
*
With H. Eatherton Assoc.
(8pecial to The Financial Chronicle)
CINCINNATI 2, OHIO
DENVER, Colo.—Harold L. Sihas
monson
been
added
to
the
Provident Savings Bank & Trust Company
CINCINNATI
PHONE CHERRY 1-6111
2, OHIO
staff of
Hersch, Eatherton & Asso¬
ciates, C. A. Johnson Building.
Two With Ideal Sees.
(Special to The financial Chronicle)
DENVER,
Jones
are
and
—
Specialists in
William
J.
affiliated with Ideal Se¬
now
curities
Colo.
Salvatore J. Lombardi
OHIO, KENTUCKY aai WEST VIR0INU
Co., 2185 Broadway.
Listed and Unlisted Stocks and Bonds
Municipal Bonds of all Types
Two With Everette Ballard
(Special to The Financial Chronicle)
Walter, Woody & Heimerdinger
,
;
PARK
Smith
are
MUNICIPAL BONDS
403
RIDGE, 111.
Charles
and
—
F.
Underwriter*
-—
Distributors
L.
Members New York Stock
Southward
with Everette E.
now
Erna
Exchange
Stock ,Exeh. (Assoc.)
Commodity Exchange, Inc.
CincinnaU Stock Exchange
Chicago Board of Trade
Chicago Mercantile Exchange
America#
Ballard,
505 Park Place.
DIXIE .TERMINAL
Ingalls & Snyder Partner
CINCINNATI 2
.
■t
--
Midwest Stock
Ingalls & Snyder, 100 Broad¬
way, New York City, members of
Exchange
.
the
on
New
Jan.
York
1
will
Rossbach to
Stock
admit
322-326
Exchange,
CINCINNATI
Richard M.
partnership.
Phone—MAin
Batchker, Eaton Partner
Cincinnati
On Jan. 2 Frank Rubinstein will
Dayton
become
a
partner
in
Batchker,
1-0560
Hamilton
Marie n
STREET
OHIO
Athens
Charleston, W, Vs.
Hillshoro
Wheeling, W. Va.
Direct Private Wire ta
v..
2.
Teletype—CI 58S, CI 232
Greensburg, Ind.
Eaton & Co., 120 Broadway, New
York City, members of the New
York Stock Exchange.
WALNUT
Chicago, HI.
Hoyden, Stone oft Co.
The Commercial and Financial Chronicle
92
..
Thursday, December 18, 1958
.
(2608)
Nonetheless,
strong.
iii the
back
Our
Reporter
Governments
on
of the
sharp set
Continued
none
for
forecasts. looks
a
in
economy
it
By JOHN T. CHIPPENDALE, JR.
evident
is
page
6
Where Are Our
j Tighter Money Market Seen
Since
from
1959.
the
that
economy will continue to improve,
the opinions of most financial
in
The
sector
short-term
Government
of
Good Business Prospects for
the
market continues to
The
look
into the coming
1959 specialists in the coming
year
spot-light, since the de¬ by economists and financial spe¬
mand for the most liquid Treas¬ cialists appears to indicate a fair
hold
the
demand
likely to
quite
of
cies.
somewhat
of
liquid obligation. *
The
in
the
much
have
been,
same
Some
the
as
purposes
switches
are
for
being
as
year-end
made,
but
again these swops are not too sig¬
nificant from the standpoint of
size.
psychology,
in many quarters
tow, and not add any more than is
necessary to the money supply, so
as
not to build up the inflation
wherein
particular plant is to
will require and
that the free re¬ deserve the most careful seutinizBased
on
these forecasts,
it serve position of the deposit banks ing. Many considerations may could be
seems
as though
an orderly up¬
eliminated, with bor¬ have to be given their proper
trend
im the
business
pattern rowings
or < negative
reserves weight in such a decision.
would not. be out of order in the again
coming
back
into
the
•The European Common Market
new year.
As against these pre¬ picture.,"v\,
J may well offer an excellent op¬
dictions, are the forecasts of those
With a modest tightening in the portunity for the sale of Ameri¬
who hold the view that the re¬
capital equipment and for
money market, a distinct possibil¬ can
covery will tend to slow down in ity because of the improving busi¬ : licensing
agreements.
I n d e e d,
1959, and this will take some of ness picture, it would be unex¬ producers bf each of the six counthe froth off the inflation bias
pected to see the discount rate tries will have to face competition
which has been and still is very move
up,, as well, as the prime in their domestic markets from
these issues continues to be limit¬
ed.
and credit pretty much in
economy.
are
they
demand for
area
money
improvement in the auto¬
mobile industry, as well as the re¬
building of inventories, is expect¬
ed to give a modest fillup to the
The
.
longer-term securities
in recent months.
been witnessed
State pension funds,
accord¬
ing to advices, have been making
selected
purchases of the most
.
,
it
being assumed
is
be
a
established
,
distant issues. "
-
bank rate.
v-
manufacturers
.
tected
position of
the Federal
Treasury will also be a very im¬
portant force in the money mar¬
ket in 1959, since there will be a
deficit to finance, which means
Specializing Exclusively in
STATE^f
;
the
that
and
will
Government
market
the
in
be
get needed funds.
to
The operations of
the Treasury of
In
sector
term
and, as long as this kind
borrowing goes on, the short-
Braun, Bosworth & Co.
Incorporated.
Municipal Bonds
New York
-
Detroit
-
Cleveland
Chicago
is
rate
term
expected to show
a
rising trend. How long the Treas¬
ury can stay in this sector of the
money
market
for
its
deficit
financing is a matter on some con¬
since
jecture,
corporations
the
been
have
supplying these
funds to Government will have
use of this credit themselves with
that
expanding economy.
an
The
Rise
ket—will
CARTW RIGHT
INVESTMENT
&
CO
sues
with
rate
and
will
Huntington Bank Building
have
the
its
capital
mar¬
dictated
trend
principally by the
amount of
money which the Treasury will
raise through the flotation of is¬
maturity.
SECURITIES
is
the
of
sector
more
than
the
of
population
i
?
fer
from
each
other
in
institu¬
of
and some
parts of Africa have no
difficulty in attracting large-scale
investments
capital equipment,
sales
very
seem
promising.
United
States
,
Opportunities
in
Let
us
tunities
the
discuss
now
oppor¬
U. S. private invest¬
under-developed coun¬
in
tries.
.;
The
of political and institutional bar¬
riers.
Yet other regions, for in-;
stance
term
"under
-
developed
usually refers to coun¬
tries backward in technique and
levels
capital
and
East
might
prove
ment
if
fected
certain
in
tenure
Central
Africa,
suitable for develop¬
the
and
changes
method
certain
in
official
,
policies, and also perhaps if cer¬
are provided by
government.
-w
tain basic services
Restrictions
people
or
on
the movement of
the acquisition and
on
exericse of skills
prevent the best
of available human resources.
of
Governments
under-developed
often
countries
support
restric-
by the encouragement of
unions, or the introduction
minimum
wage
regulations.
trade
of
The
effects
development of
on the entry or
activities of foreigners are likely
on
of
real
and
income
be
particularly serious in the
poorer
countries.
The
low
level
of
population
by the standards
head
per
to
of
capital
are
(with
low
covers
the
the
whole
exception
Africa, Latin America
of
Asia
of
Japan),
of
and
parts
wealthier countries. Differences in
the relative prices at which
tal and labor
ence
Eastern
Defined
in
developed
and
this
Southern
Europe.
the under¬
way,
contain
areas
about
at
the behavior of all who aim
economy
sources.
nomic
It
in the
use
follows that
efficiency
of
the
To be sure, the corpo¬
exempt bonds that
be
coming into the picture
the interest rate pattern
capital market pretty much
the firm side, with some finan¬
cial
that
be
ingly, under such conditions, the
demand for money and credit is
likely to show
not
Lee Bottome Fisher
will
become
on
NEW YORK
CLEVELAND
Chicago
a
v
Hartford
Detroit
January
partner
in
Steckler & Moore, 120 Broadway,
New York City, members of the
New York Stock Exchange.
1st
in Ohio, it's The Ohio
Des Moines
r,
New Walston Branch
Company for underwriting,
MIAMI
&
distribution... for
Company
much of
very
Steckler & Moore Partner
...
&
let-up in 1959.
a
Something to remember..
Baxter
BEACH,
Fla.—Walston
Co., Inc. has opened
office
1100
at
Kane
a
branch
Concourse,
DISTRIBUTORS
IN
OHIO
NORTHERN
Harbor Islands, under the
mangement of Raymond F. Barron.
Bay
sound investment service
To Be Picoli, Caulfield Co.
The firm
name
of F. H. Douglas
SAUNDERS, STIVER & CO.
&
...
in the heart of Ohio,
serving all of Ohio
Co., 20 Broad Street, New York
City, members of the New York
Stock Exchange, on Dec. 13 was
changed to Picoli, Caulfield & Co.
Investment Securities
•
One Terminal Tower
To Be
51 N.MGMST.
THE
OHIO
COMPANY
Mimiir et tht mUwn SHtk
tudwuy
investments,
COUJMMJS 15, OHIO
■,a:.'..v.
Weingarten Partner
Weingarten
&
Co.,
551
•
Cleveland 13; Ohio
V,
'
*».
*
PRospect 1-4500
Fifth
Avenue, New York City, members
of the New York Stock
on
Jan.
1
will
Exchange,
admit
Miller to partnership in
Lewis
H.
the firm.
MEMBERS
MIDWEST
STOCK
re¬
eco¬
(not to
tax
experts being of the opinion
a modest uptrend would not
'a complete surprise.
Accord¬
capi¬
available influ¬
are
in the
on
in
under-developed countries implies
that capital is relatively expensive
of North America
and
Western
and unskilled labor cheap com¬
Europe.
As generally used, the
pared with the relationship in
which
will keep
Columbus, Ohio
ef¬
are
of " land
official restriction
countries"
with
gov¬
coun¬
tionism
for
ment
direct
tries, for instance Indonesia, Ma¬
laya and Burma, sufficient
productive resources may be
available to attract external capi¬
tal profitably but for the presence
use
Under-Developed Countries
without
ernment assistance. In other
short-term
a
; :
Under-developed countries dif¬
as
and
agreements
Rates
Interest
long-term
market—that
SWENEY
in
the prospects for
the
summary,
term
Possible
unpro¬
import quotas.
license
Government
market
of
,
the
of
states,
or
U. S. investment in Europe in
next 10 or 15 years, as well
late have been mainly in the near-
municipal bonds
by-tariffs
other
in
located
' market
common
Borrow Steadily
Treasury to
The
Since 1923
Toledo
forward with
come
three-quarters
of the world.
some
these
bills, since there are reports to the
changing over
in
many
cases
from the three
months
issue
into
the longest
sys¬
a
practical and hard-headed tional arrangements or in natural
proposals to prevent inflation in resources, or in the attitudes and
Europe and bring the monetary skills of the population.
These
policies of the six countries into differences may in 11 uence Die
line. In its recent study on inter¬
suitability of a particular country
national
liquidity
the Interna¬ for economic development or the
tional Monetary Fund cites this
promise of profitable returns to
set of proposals with approval.
capital investment. As Prof. Peter
The choice of the country Bauer remarks, : South
America
in face of
effect that they are
for
monetary poli¬
Here the International
Chamber has
obligations is still sizable even degree of agreement as to how
the larger offerings of the economy is supposed to be¬ higher costs for borrowings, un¬
securities by the Govern¬ have. It is evident from the pre¬ less the monetary authorities are
ment in order to raise new money dictions
which are being made inclined to supply more funds to
to finance part of the deficit. Cor¬ that it is believed the recovery the money market.
porations are taking advantage of will continue at a good pace,, one
Since the prevailing policy of
the offering of 182-day Treasury not dissimilar to that which has the powers that be, is to keep
ury
the EEC to provide
tem to coordinate
This
will be
pressure
direction
the
in
the
credit is
also.
grow
the
that
means
year,
and
for money
EXCHANGE
be
Volume
Number 5804
188
.
.
The Commercial and Financial Chronicle
,
ef¬ informed that the young man who
was sullying his hands, in order to
inunder-developed' cOVntr i e $ demonstrate its performance was
cannot
be
"What I
judged simply by a university graduate.
comparing them with those famil¬ need as an exhibit here," said the
iar in North America or Western Emperor, "is not that tractor, but
Europe. In under-developed coun¬ that young man."
It is often said that capital for¬
tries many economic activities are
performed with little or. no capi-i mation in pnder-deyeloped coun¬
tal.: ; It is interesting to note that tries is practically impossible 'beih spite of the; rapid economic cause ;of a low national income^
growth of the last 80 years, mechr which means a negligible rate of
anization has been slow in Japart, saving.1
Yet
all
the:" countries
•except in a few; manufacturing Which today are economically and
technically advanced : began
industries.
~
as
j
with^ the
confused
_
technical
ficiency) ; of methods
such forms as
precious stones,
metals, coins or textiles. Suchobjects of wealth are more readily
production
buildings
nomic
also
i
and
to
19*. M
As
liquid.; r y
that
the
when
economic rand social
of
■;
-,
general proposition it
a
said
Because capital per head is high
in economically advanced > coun¬
II
-
\
can
political,
environment
country is favorable for do-:
a
mestic investment it will also at-
i
poor - as
: tract foreign capital.
;
r.
under-developed
When the wealthy people of an
countries are today:' Capital" ac- under*;-"
developed
country' are
tries, it is usual to deduce that the
cumulation took place as part of
*•
prompted, because -of domestic
key to the problem of the devel¬ aprocess
of - economic develop^
conditions; to export their capital
opment of backward economies is
the provision of capital on a large ment, however low - the income or their: Savings, it is usually a
may have been at one time* be-^
Very reliable signal that the situa¬
scale.
More
recent
events
and
cause the
general conditions and tion is not favorable for
foreign
developments have made it clear
opportunities were favorable for investment.
; •
that merely to supply a backward
economic growth.
In these cir¬
country with capital funds or with
How Good the United States
cumstances
foreign
capital has
the most modern equipment will
also often been available.
Prospects?
not ensure economic development
There are numerous impedi¬
How good are the prospects for
even if the capital is given away.
ments to private saving and in- U. S.
private investment in under-"
; It is often nearer the truth to say :
vestment in many under-devel¬
-developed countries?
'*
:
- that capital is created in the proc¬
oped countries. These include the ;
Narrow nationalism is rampant
ess of economic
growth.:^
imperfect
maintenance
ofV law in all these countries. Are there
; -'Many,
under - developed eoun- and order, political
instability, ways of limiting its damages and
tri es ; cannot
use': capital, : even unsettled
monetary conditions, the canalize
whatever
constructive
when avail a b 1 e on reasonable
extended family system with its forces there are
inherent in the
terms, because of lack of entre- drain on resources and its
stifling nationalistic sentiment toward in¬
preneurship, or the lack of per¬ of
personal initiative and certain ternational cooperation and
peace?
sonnel with the required experi¬
systems of land tenure which in¬ A patriot understands and ad¬
ence and skill.
These factors do
hibit saving and investment. - All mires
another
patriot, while a
often curb the economic develop¬
these impair the ability and will¬ rabid * nationalist
detests
every¬
ment
of
under-developed coun¬ ingness of people to take a long
thing foreign.•
::
1
tries
more
effectively than the view, to save and to invest. Prof.
In most of the countries which
lack
of
physical capital assets. Lock wood makes the following
obtained in recent years political
As Professor Kuznets has put it:
reinaik 'fcbnberiiing the economic
freedom, the anti-western feel¬
"The major capital stock of an development of Japan: "The de¬
ing is strong, because it has its
industrially advanced country .is cisive difference between Japan roots in the prejudices aroused
by
not its physical equipment; it is and most of her Asiatic neighbors the
colonial period. Some Asians
the body of knowledge amassed, was not so much a greater dispo¬ even condemn the
acceptance of
and the capacity and training of sition to save on the part of the
foreign capital as a sign of colo¬
the population to use this knowl¬ Japanese as it was the more ef¬ nial
status.
fective inducement to a high rate
edge effectively."
Are these new countries ripe
A report of the United Nations of investment in productive enter¬
and ready to adopt political insti¬
illustrates this point by the fol¬ prise. Everywhere the process of tutions
and
universal
suffrage
lowing incident: In Ethiopia, as in capital formation has in some de¬ prevalent in the western world? I
many parts of the under-devel¬ gree this boot-strap character."
wonder.
Democracy presupposes
oped
world,
the
educated
are
Where, in under - developed ability to choose, which implies
often unwilling to learn jobs that countries,
the general environ¬ education. It is hard to get proper
entail "putting on overalls." Once ment is not favorable to produc¬
political education even in coun¬
during a display of some agricul¬ tive investment, it is likely that tries
without
illiterate
people.
tural machinery the Emperor was a large part of savings is kept in What
chances are there for such
-
19*-17
invest¬
encourage
trading rather than in
manufacturing^: becatiSe the assets
be
■
as
equipment.
Eco¬
political uncertainty
in
aro more
.
were
WkmmPAST PRESIDENTS^311®
and
tends
ment
.
which
V,
concealed in times of trouble than
.
countries
:
_
the
of
some
•
■
.
Edward B. Hall
OrriK G. Wotd
-
1931-32
1930
-
31
--
G. W. Bovenizer
Allan M. Pope
Henry T. Ferriss
*
.
'
education
there
ST.
Our
MARKETS
LOUIS
lack
We
SO
is
a
Market
we
can
you
pin point distribution in this
area
1871
MEMBERS
New
York
Stock
American Stock
Exchange
Stock
Midwest
Exchange
.
1-7600
Direct Private
Josephthal &
Co., New
Francis
Board
(Associate)
of Trade
Saint Louis 2, Mo.
Bell Teletype SL 593
8410 North 4th St.
CEntral
Exchange
Chicago
Wire Connections
With
New York Hanseatia Corp.
du Pont & Co., Chicago
York
I.
i
of the
decidedly
want
propriate
j!
?
rising
a
expec¬
countries
there
anti-capitalist
is
and
SAINT LOUIS 1» MI0BOUBI
Correspondent 14 Wall Street
-:Cktssgo Tdsphoss to Bead Dfortma* IHsl HI Jtsfssrf EsOtrprlm M7I
r:
RESOURCES
OVER ♦BOO
MILLION
•
v
>
Jefferson City, Missouri
Private
Wire to
Clark, Dodge &. Co., New York
.
countries
loans, or
countries
wish private
selves
a
very
simple question:
"Why does a private individual,
living in the capitalist countries,
reputedly greedy according to so¬
or
da, not take advantage of interest
as high as 10 or 12%, or
15%, by investing in under¬
developed countries?" Should they
answer
this
question
candidly
they would know what has to be
the
are
will
foreign private in¬
not
be
large-scale
risk, if private foreign rights
violated, if there is fear of
of enterprises, if
nationalization
socialism prevails and is encour¬
aged, and if demagogic labor laws
and wages are enacted.
Besides
of
direct
open violations
private foreign rights and in-
,r^
We Specialize
communistic propagan¬
private investment in the under¬
developed nations, if there is no
compensation^ commensurate with
New York
Clayton, Missouri
attract such
government
these
There
;
•
encourage
vestment.
I
Branch Offices
Alton, Illinois
aid.
done to attract
.
Telephone CEntral 1-5585
-
atti¬
even
MUNICIPAL BONDS
OLIVE
SAINT LOUIS
welfare state.
rates,
STATE AND
FOURTH AND
investment they should ask them¬
cialistic
U.S. GOVERNMENT,
Exchange
that
the under-developed
If
f
individuals
of
dem¬
result
the
are
-
their
Nowadays, when they
speak of foreign investments most
or
to
(Associate)
Midwest Stock
growth.
of
institutions and
'
Municipal Bonds
climate to
investments
grants
important services to
Exchange
^
private foreign investment.
think
our most
Listed and
Unlisted Securities
The question arises because most
of them are not creating the ap¬
of
of
Exchange
American Stock
it is
One really wonders at times
whether many of these countries
k
One
:v;
tude.
k
-
as
Co.
New York Stock
responsibility,
case?
istic schemes and
a
JONES & CO.
ESTABLISHED
Distributors
tations" is channelled into social¬
In most
EDWARD D.
leaders
not corrupt,
are
agogues,
with
"the revolution
find it"
Specialize in Orders For Banks and Dealers
registered representatives give
the
the
Many of these leaders
And Invites Your Inquiries
"If there
of
sense
they
often
Local Listed And Unlisted Securities
-
the
when
Trading Department Is Active In All
where
and
&
Members
Underwriters and
where
large numbers of illit¬
are
erates,
countries
in
Newhard, Cook
Continued
on pane
94;
in
making close and sizeable position
markets in
issues
and
a
wide variety
are
of unlisted
always interested in
purchasing blocks for
our own
retail
,
distribution.
scherck9 richter company
MEMBER MIDWEST STOCK EXCHANGE
320 N. FOURTH ST.
ST. LOUIS 2, MO.
:
94
The Commevtial and Financial Chronicle
(2610)
mentioned
Continued from page 93
the
by
Investment
mann Abs that it is high time to
terests, the under-developed coun¬
tries frequently make things diffi¬ arrive at an effective system of
cult
tor
foreign
enterprises. international protection of foreign
Among them I would list: the rights. We must restore the saner
withholding Of essential raw ma¬ tity of private property and pri¬
vate contracts.
The capital-ex-
excessive
censes,
taxation,
-
porting countries together must
take joint action to defend our
rightfully acquired interests
abroad.
State-guarantees against
ex¬
As a dis¬
banker,- Mr.
Hermann Abs,
put it recently:
"Exchange - regulations ? are
the political risks abroad do not serve
high-school of expropriation." ♦ - the purpose.
Mr. Abs proposes an interna¬
Any under-developed country
that Wants to do something about tional convention by which all
the dangers which impair the in¬ contracting parties, both capitalcrease of Capital exports to eco¬ export and capital-import coun¬
nomically less developed coun¬ tries, undertake to treat foreign
tries, dangers deriving from the capital and other foreign interests
change regulations, etc.
German
tinguished
-
mentioned tendencies to fairly and without discrimination
disregard recognized rules of in¬ and to abstain from direct or in¬
above
-
find all the direct illegal interferences with
information on how to proceed in such investment. Such a conven¬
should
provide
a
special
the "Code of Fair Treatment of tion
ternational law, can
Foreign
court of arbitration
which would
by the
have
of
determining
investments" published
International Chamber of
whether
Commerce.
I
heartily agree with Mr. Her¬
task
the
involve
cases
before
brought
of
violations
the
it
above
tMimiiHiHiiNiiHmnininmun
BROKERS
the treaty
countries
from
the
to
those
started.
to recommend pol-
of
small
Thursday, December 18, 1958
.
different
Most other
countries,
methods" to
large markets, like India, the government should
pioneer a few
defaulting
raw
material
prices have also fluctuated widely.
The ..governments
are ' seeking
They think that irt countries with
member
credits
at
these
projects for basic i industries, like steel, for instance,
within a specified period of time, which may later be. turned over
An international effort should to private ownership, as was the
also be made to discourage Un- case in Japan and in tiib 'f'hily)-.
profitable lending to finance ex-- pines. Smaller countries/ however,
ports.
Mr. Hermann Abs pro-. 'should not depart from the poi|cy;
poses that we draw up some basic: of leaving it to private enterprise
principles to be applied to gov- to establish and operate industrial
ernment
assistance
granted i for plants and commercial organiclong-term export credits. •-"V; lions.*-v
■*
reduce' the
price
.extent * of
fluctuations
without-
the
same, time creating worse
economic • problems. Our govern¬
industrial
ment
rightfully opposes interna¬
commodity agreements for:
the support;.of raw. commodities.
However, I share the .view' that
webcam and should prevent ab¬
tional
normal
or
exaggerated; swings; of
the
1
.which
cycle
fluctuations
.
of~
raw
are
commodities- (
entirely'agreeWifh the Chair-
mah of the Federal Reserve Board,
realize, the question .of ;
Bill- Martin, th^t the^ best way To
.?
'
Show to ^make- tfieVifreer world!,
Many of the under-developed, united in a/concerted-effort,, to; prpVonb a slump is te '-avoid a
countries are seeking to achieve, in, bring together the advanced ancU boom artificially over-Stimulated.
a generation, an
economic growth .retarded , areas -in commbm eeo^- FoF instance, > it>;is ' inexcusable
that took a century and more in.nomic 'enterprises is a very diffb-" that we. should have superimposed
credit inflation right on the hefels
the now industrialized states. Eco-, cuit and complex one. it will
nomic
growth necessitates both: quire a great dekt: of, realistic of a money, inflation due to the
domestic savings and foreign in: thinking on the part of our most monetizing of debt to finance the
As you
The Attempt at Acceleration.
.
.
vestment.
experienced
men,
„..,I->-•; T;
war,:,"
;artd, as'imp.or-
-*'
;
■
•
Businessmen ' ^themselves v can
»rp<
lantly, the close ; cooperation ■ of
ihake a valuable contribution 'to ;
concerted effort to unite the ad- all*capital-exporting,
the operation of a steady *econvanced and retarded areas in com- i The potential oppbffubities for..;
vFoF, iristance,Tfor one can
mon economic enterprises?
^ ^ o r private investment in . the uh:?er'.:
find no. -good excuse for. a polity
To this effect/government aid -developed countries are undouljlWhich makes it necessary to pro¬
may well be necessary.; If sound edly .very great.
Thbir profitable ' duce
7&: Million automobiles one
principles
are
followed in the realization
will
be
hampered/,
granting of such aid, it can lend'-however, as long as the govern- year and four-million; the next
real support to private capital- ex^mehts
ofthe- capital-exporting year. Neither is it wise to over- ;
stimulate.the appetite of the con¬
ports. But excessive reliance upon and capital-seeking nations will,
sumer by low down payments and
government aid will discourage not have taken measures able to
too easy credit terms in properous
private investors in both the capi- ^eradicate the obstacles to private
-times.
Efforts" for increasing in¬
tal-exporting and capital-import-' investment:-1
'
r''"
How
L
the free world make a *
can
..
.
-
>
stalment
should
sales
be made in
will also enA substantial share of the retimes of recession and not in times $
capital-seeking sponsibility for creating the cli'
1 %
•
'
countries the hope ^ of receiving mate and conditions favorable to of boom. .V
There is no doubt that too large
foreign government funds, instead private investment falls on the
of providing the right climate for leaders
in the under-developed swings of the American business
foreign private investment. Yet countries. The most important one cycle are also dangerous for the
with which we trade,
the capital needs of the under- is to adopt monetary 'and fiscal countries
and particularly for the countries
developed countries are so large, policies which will give the counproducing raw commodities; The
that
substantial
and
relatively try a sound currency, freely inters
recent
American
recession
has
rapid economic growth cdn be exchangeable into those of other
achieved only if government aid countries.
In this respect I wish strongly affected those countries.
prob¬
is supplemented by a great inflow to stress our own duty and re- It has created unsolvable
of private foreign investment.
sponsibility. It seems evident ; to lems and, as always", demands for
One
of
the
greatest dangers me that monetary order in the aid from America", leaving aside
which hangs over any program ol" free world can be restored only- the ill-will toward our country.
government to government aid is if the United States takes the! It is to the interest of our own
that big plans will be drawn up proper initiative and assumes J-he country and that of our interna¬
which have little worth even from leadership which belongs to it be- tional ' relations that we manage
a political point of view.
There is cause of the colossal economic our economic and monetary af¬
a constant threat that
government power it wields in the world. Tne fairs with restraint and wisdom.
aid will cause resources, whether issue of sound currencies is not It can be done, but only with good
and
not
with the
foreign or domestic to be mis- only a practical one but also one government
directed into uneconomic projects, of morality.
There was a time powerful monopolistic labor
It may be desirable also in the when the big countries of. the unions we. have at present in our
field of government aid for the western
world were giving the country. / ""
There is still another thing we
capital-exporting countries to co- small, countries an example of
Basinets
m
ing
Established
and
of
seem
icies for large countries
country unless it was prepared to
restore
the
infringed
interests
Opportunities?
terials, the refusal of import li¬
new
and
Others
entitled
be
to
to
private or public loans
the
refuse
Where Are Our Greatest Foreign
would
terms
oblige
court
The
principles.
arbitration
of
..
I
courage
countries.
in
It
the
.
-
1874
D E A L E R S
I. M. Simon & Co.
MEMBERS
New
York
Exchange
Stock
Midwest Stock Exchange
American Stock
Exchange (Assoc.)
SL 288
ST. LOUIS 2, MO.
CEntral 1-3350
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House
MUNICIPAL and CORPORATION
.
SECURITIES
ordinate
in
policies
giving
to
financial
be
aid
followed
to
other
good behavior. Unfortunately we
can't say as mueh for the policies
can
^
do to relieve the international
economic
tensions
and
pressures.
nationalism
and
the
of our governments nowadays. We Economic
have foregone discipline in mone- often unjustfied efforts made
national
self-sufficiency
countries to encourage socialism
tary matters, just as we have be- toward
or
a
narrow
policy of national come accustomed to the use of would not obtain the support^ of
self-sufficiency.
expediency in tackling most of so many nations if our interna¬
tional -trade'• policy
Most
of
the
were
more
under-developed our problems.
:
nations anxious to obtain a rapid
One of the bitterest complaints liberal, and if we would prevent
economic growth are faced with of the under-developed countries abnormal swings in our business
two important decisions: (1) is the violent price changes of raw cycles.
Our recent enactment;of
Whether they should follow a pol- commodities.
For a number of quotas on imports of lead and
icy
in
which
the
government economic reasons prices for many zinc are a good example of our
establishes
and
mbst
operates indus*- raw materials are much more un- inconsistent^ actions. J The
tries, and (2) whether the gov- stable than the prices of manu- sound and most effective way-of
nations. For example, public funds
should not be invested in foreign
Beecroft, Cole & Company
TOPEKA, KANSAS
Member Midwest Stock Exchange
lit West 6th Street
Coluntbia
821
Bank Building
KANSAS CITY, MISSOURI
TOPEKA, KANSAS
CEntral 4-5673
Victor 2-6288
Teletype—TK 8696
Teletype—KC 81
Private
Wire
Offices
Between
factured goods. As a matter ■ of obtaining well-being in the world
fact, it is because of these wide and the benefits of technological
fluctuations
that
many
of the progress occurring in the indus¬
under-developed nations advocate tmder-developed • countries wish trialized countries is freedom of
ernment should encourage
investment.
Some
of the wisest
foreign
men
in the
that government should undertake
only projects of the "social
THE
40
OVER
WRITERS
OF
HIGH
AND
MIDWEST
YEARS
AND
AS
to industrialize and diversify the
international
trade.
products made domestically. Rubhead" type (like roads, harbors, ber, for example, just in the past Doubts About Prevalent Concepts
At the beginning Of my speech
irrigation, etc.) while industrial four years, has doubled in price
plants should be established and once, and then fallen back to I referred to the opinion that our
best chance to. prove to the yet
operated as private enterprise.
roughly the level from which it
FOR
UNDER¬
over-
DISTRIBUTORS
GRADE
CORPORATE
MUNICIPAL
SECURITIES.
Municipal and Corporate Bonds and Stocks
Trading Markets in Local Securities
*
i
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INVESTMENT
c-
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°'-1 TiVnF'
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OMAHA
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STREET
.
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f
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188
.
.
.
The Commercial and Financial Chronicle
(2611)
uncommitted countries the superi-
When
ority of freedom
abroad
the
we
show
is to make India
window of free enter-
Americans
we
we
must
look
alone
keep in mind that
would
be
enough to
cause
are
iba
a non-communistic
economyftne?a^wakeningofgreatmasses of
produce. ; It is maintained that [people^ to c a! ;desirefor a better
riess and unselfishness
nation^, ahd
a
great
It®
PRESIDENTS
1129-31
1921-27
frowbridgt Callaway
whaf
can
=E5££S»
serious disturbances in the world,
living in the most revolu- Coming together as they do
they
prise.-It is being contended thh^ tionary period of human history, create a highly explosive mixture,
we have scattered our aid over too
There
are„ a
half-dozen forces The destiny of the free world wili
many countries, with the result loose in the world today, anyone depend on the manner in
which
that the effect was slight in each of which might tear apart the we meet
this awesome challenge
$5
Pliny Jewell
1928
-
26
1915-1T
of the free
of re-
sense
leaders, if wd
flux
le
us
pbundant ; resources available to
under -developed countries a r e
.human
resources.
countries
like
In
thd
Cay Morris
Lewis B. Franklin
-
communist
-T-...
arid
China
level
resources, are
inten-
States,
Russia
of
God.
of
.
output
-r
,
than the
United
by totalitarian
methods.
This policy
does not
seem
possible in a country like
Jndiivwhicfv enjoys- alf the tech-
distinguished: from the percentage
gains, are much greater in the
compared with $440 billion in
1957. This is not a prophecy, but
an
arithmetic Which takes into
account the human and material
United States.
resources
pical
value of
the
human
sively
exploited
trappil^
and which still has
social institu-
has
too,
human
of
terms, the total
S. S. R. production ■';;
U.
been
estimated
the
to
the
one-third
stances^^5>rtot>?■
exploitation
as
gains,
of
absolute
tions like the caste. These circum-
ficient
that the absolute
so
level
U.
S.
Soviets*/ have
to apply advanced
be
Then,
been
,
able
are
three
broad
tNCOltPOftATED
objec¬
tives, as I see it, which should
guide/national policies in the com-
ing.
technology and
C. T. Williams & Co.
_■.
The Job Ahead iT,~
AThere
about
Nation.
our
,
decades, if
years and
we
INVESTMENT BANKERS
are
United States Government and
th<* optimum utilization of human
mechanization, they will find that
capabilities; < Besides, there* are/-they will be less able to benefit
religious tabpos* in Jndia^wlnch ^om
existing available methods,
make a great part of the
cattle^al1
R°r the long run, our own execonomic liability instead of an
jactations for continued growth;
^
asset.
yT^:Sffy
,
"rest
on
the
fact
that
the
or
[necessary that the rate of capi-
healthier lives.
tali development be as rapid in ajl
of these countries (in south and
Our
built-in
strength
of
economy, and award of the stabil-
Federal
intervention, at
the first signs of downturn. And
it is just as important to exercise
judgment and discrimination
when
do decide
we
hope
I
lessons in
productivity is still climb-
we
have
■
State
should
have
these
that if
we
which have
1975
common
BALTIMORE t, MD.
Telephone: Plata 2-2484
Private
Telephones
to
—
Bali Ttiatypat BA 409
"
*"*
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Branch Office
Bell
— Gryaraa
Bid*., Eaaton, Md.
Teletype — ESTN MD 204
some
10nn
do the recession any good, for the
since 1900, reason that public works are slow
Product by in getting under way. Instead of
rtwvlI,xU
Gross
°ur
measure.
i
the
annual rate 0± growth
no
FIDELITY BUILDING
National
would
exceed
$700
INSURANCE STOCKS
f
Government-Municipal-Gorporate
Securities
Dealers
—
Underwriters
—
Brokers
John C. Legg & Company
Established
1899
Members
New York Stock
Exchange
American Stock Exchange (Assoc.)
Philadelphia-Baltimore Stock Exchange
authorizations in time to
continue at the average
things because otherwise in a few
we may draw wrong conelusions by comparing situations
years
Issues
From 1947 to 1956, the
•
said
and
recovery,
learned
past year, as to
aver- when government action is effecsoUtheasbAsia) as it is in the case^ age annual increase in output per tive—and when it is not—in dealof the communist countries which
man-hour was between 3 and 4%, ing with unemployment and
a
use slave labor on a massive scale,
compared to the long-run 2%. slowdown in the economy.
You
Obviously you can do something Although the increase did slow may remember —
certainly I remOre,. rapidly if you turn, every-, during the past
.couple of years, member! — the loud chorus of
body into slaves, if you disregard if seems to be about to make up demands for all kinds of new
family feelings, family relation- the loss.
WPA-type programs and spending
ship, separate the menvand the
Our technological process shows panaceas. Public works were the
women,
separate
the
children, no sign of slackening. Research favorite solutions advanced, and
make all work
just like pack*- on both the private and public some of them were enacted into
horses. I don't think that you can levels continues its
amazing out- law despite the administration's
match the rate of progress that put of new inventions
and new contrary advice.
For its part, the
is tnade by that sacrifice of human
ways of doing things'.
(administration put forward a
value. It is not necessary to have
The skill of our labor force and sound plan for extending unemthat rate of progress. It is neces- of our
managerial staff improves, ployment insurance benefits, and
sary to have enough progress so. both from experience and as a this also was enacted. The added
that there is a feeling - of dy- result of our broadening educa- unemployment payments were
namism, and that the people are tional base.
immediately put to work in the
getting out of what I refer to
These and other factors combine economy, and they did exactly
as
a
permanent stagnant condi- to make us confident. The Com- what they were supposed to do,
tion."
1
mittee for Economic Development, and in time.
By contrast, very
ft is good that the Secretary of in a recent report, has estimated little resulted from the public
ing.
Utility
on government.
actions to accelerate
:
Industrial
Public
our
izing ; factors now existing ...in.,
government programs, so that we
do
not panic
into
demanding
massive
forces
Secretary vDulles
in his"press vvhich have generated our past
conference of Nov. 27, probably
growth are still very vital and
having in: mind the" same issue, very strong.
*
made the following remarks: "I
Our population is still growing
(don't anticipate that it is practical "and we are
living longer and
.)
the
of
Municipal Bonds
Railroad,
BALTIMORE
NEW YORK
meeting the needs of the recession, the added public works pro¬
billion,
are only now beginning to
hold, after the fact, and at a
when, by all standards, we
ought to be spending less, not
W////////////////////////A
grams
take
time
Firm Marvels In
more.
We have had
?',-vaV
-
WASHINGTON
Direct
SECURITIES
Private
Wire
to
-
Carl M. Loeb, Rhoades & Co.,
1,r-'
.
V.r
our
New York
'
-r
Correspondent
i
1920
Johnston, Lemon & Co.
MEMBER
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
BOSTON
STOCK
UNDERWRITERS
-
EXCHANGE
(Associate)
DISTRIBUTORS
-
in
an
economics
expensive lesas
well
as
in
national
psychology.
If we re¬
member it, and profit from it, we
may have acquired a little more
perspective
and
maturity with
which to approach the future.
i Second, we must advance with¬
in out inflation, or our growth will
be seriously undermined. A grow¬
ling economy is only in part a
; matter of restless technology, high
l employment, good wages, and ex¬
panding markets. It is just as
f dependent on a sound foundation
of relatively stable costs, wages,
rprices, purchasing power, and
public budgets. I think it is fair
DEALERS
Building, Washington 5, D. C.
Telephone: STerMnf 3-3130
Bel! Teletype: WA 28, WA 95 A WA 509
Office:
Alexandria, Va.
American Stock
Exchange
Exchange (Associate)
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Charles and
.
are
now
by the
to a
unex¬
Chase Sts.
BALTIMORE 1, MD.
the center of public at¬
tention have been triggered
considerable extent
Branch
—Members—
New York Stock
•
to say that the inflation fears that
Southern
Mead, Miller & Co.
:
.
ESTABLISHED
son
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pected magnitude of the Federal
Continued
on
page
96
■/////,"///////////////////;/■
■
*
The Commercial and Financial Chronicle
56
Thursday, December 18,1958
...
(2612)
positions of influence and power everything will turn out all right
be most eloquent in describing m the last chapter.
That might
our
country's fabulous economic have been good enough 50 years
world, and our needs for domestic growth, without realizing at all ago, if then, but we live today in
public services, all without im¬ the necessity for dealing responsi¬ an entirely different world, and
pairing necessary private invest¬ bly with the new conditions which horse-and-buggy thinking will not
ment or family consumption, and have been created by that very pull us through the strains and
crises which lie across our path
without raiding the tax base re¬ growth.
that
means
Continued from page
95
budget
deficit of more than $12
billion in this fiscal year.
special
group
ment shouldn't
quired
the govern¬
asks,
a
way
defense needs, our
can
Why
essential- functioning
for
This sounds
like
rector's dream of the impractica- government to cut expenses, and
of our citizens has
able, if not the impossible. Never¬ yet support industry groups seek¬
should
be
concerned
grown accustomed to subsidies or
threat of inflation as
a
conse¬ benefits which are out of all pro¬ theless, it is precisely what lies at ing more government subsidies?
the heart of fiscal policy planning
Why is it that some labor lead¬
quence of deficit financing during portion to reality, the government
ers press hard for wage increases
at the Federal level.
a
period of vigorous economic should scale those benefits and
to keep up with the cost of living,
recovery. This is the whole point subsidies down to what we can
Submits Startling Figures
and then urge a massive program
in what the President is trying to afford.
Some of the figures are star¬ of legislative action which, if
If
we
cannot
carry
out the
accomplish in containing expendi¬
adopted, would lead to more defi¬
tures in the forthcoming Federal wishes of the majority with the tling.. Today, the combined gov¬
ernmental tax take in this coun¬ cit spending, higher taxes, and
budget. We just cannot satisfy all present tax structure, the govern¬
inflation—all of which could only
the demands for government ment should spell out what new try — Federal state and local —
already amounts to over 26% t of demoralize the value > of wages
spending, and still balance the taxes must be raised.
•national income. The cash expen¬ earned?
;
/.
If/the people want protection
budget within foreseeable rev¬
ditures of the Federal Govern¬
Why is it that some farmers at
in a world of tension and danger,
enues.
-'h*
/ .'A
ment alone constitute about $95 once embrace the new farm tech¬
Third, in any budget — yours, without more taxes, the govern¬
billion in a total Gross National nology which multiplies crop pro¬
ment should remind them of the
mine, or the government's—first
Product of roughly $450 billion. duction, and demand a structure
sacrifices they will have to accept.
things must come first. After the
In constant dollars the Gross Na¬ of government price supports and
It is time for realism in govern¬
hare necessities are provided for,
other benefits and services which,
I
think
people
about the
American
the
If one group
The Test We Face
the point which t
beginning, my plea
for sanity in government finances
as one essential way of guarding
our economy.
V
* -rv!
In a very few weeks the Presi¬
dent will submit a new budget to
-
other programs can be considered
out of what income remains, if
ment
finances
—
the Federal
in
has
Product
tional
doubled
Budget.
1929
than
.more
to
1957, but
expenditures have
from
'
to survival and achievement.
join taxpayers organiza¬
to bring pressure on the
tions
Budget Di¬
a
business
is it that some
leaders
of state and local governments.
spend it.
.
security of the free
needs for the
This Growing Economy
And the Federal Budget
find
must
we
to finance our
at
an
I
to
return
made
the
at
the Congress, for
It will be
facts of
be
as
our
tight
fiscal
year
1960.
budget tailored to the
economic life. It will
a
budget
a
the Presi¬
as
can. make it, in the fact of
existing laws.
- ■';
y
-;*•*? \.
The new budget will run into
dent
criticism because of the
fact that it will be tight.v It
will likewise be met by criticism
on the part of those who think it
should be even tighter. i
annual cost to the American
sharp
very
*
We can't have it both ways.;
If
between $7 and $8 the thinking people of this coun¬
any. We need the kind of budget
increased 12 times!
billion, is exceeded only by de¬ try, including the economists who
for the next several years which reduce the risks of inflation and
But these trends will not easily fense expenditures and debt serv-* know the difference between a
to help our economy to "grow"
puts some definite choices up to
■■
.i'i
''■/
' Strong economy and an inflation¬
be reversed. Foremost, I think we ice.? •
in the right sense of the term.
the American people.
must : accept
the
prospect , that
Why is it that many politicians, ary economy, will unite to hold
This is not an easy course. It
If we can't afford what some
responsibilities, too expenditures from exceeding the
military
costs will continue to sensible of
absorb
about
50%
of the total often choose to play the dema¬ budgeted levels, we will have a
Federal budget for years to come, gogue in an age when the people good chance to stabilize our af¬
unless some secure resolution of are waiting to be offered not cake fairs and consolidate our financial
world tensions is achieved. De¬ and circuses,
but evidence that position. We must do these things,
fense comes high, in this age of their future—and their children's and accept some sacrifices, for to¬
is the first concern of morrow's sake as well as for to¬
technological advance.
We can future
is
This
y
one
practical
way
to
Federal
total
taxpayers of
'
—
dollars
defense
stretched through careful manage¬
representative government?
We cannot safely run this coun¬
ment and strict standards of econ¬
try
that
insist
SOUTHEASTERN
be
but this will produce little
relief, in the dimensions we are
dealing with.
When you add to
direct
defense
expenditures the
omy,
AND
GENERAL
MARKET
bills
other
must
we
MUNICIPAL
tional
BONDS
We
on a mixture of selfishness,
unite
provincialism, voting blocs, sec^
tional or economic antagonisms or
coalitions, nor a simple faith
matter
—no
for the
pay
costs of past wars and
day's.
what
that
test.
a
We can
escape
not escape
it—but we will
it for long, and it will
be that much harder to deal
happen
for interna¬
;
.
meet it, or we can di¬
and
and
vide
.
.
facing
are
with
►ESTABLISHED 1990 —
security for the free world,
the total
to 77%
comes
ing budget.
Meanwhile,
our
society
is
not
Other imperatives
for
consideration.
is with us, and to
standing still.
pressing
are
The space
of the go¬
.
age
BAKER, WATTS & CO.
meet its challenge will be expen¬
Stubk, Watkins & Lombardo. Inc
BIRMINGHAM 3, ALABAMA
Teletype: BH 287
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Education, health research,
rebuilding of our cities, the
irrigation of our lands, the devel¬
opment of practical new forms of
energy, the building of highways
and airways to handle tomorrow's
traffic, the need for recreation
facilities,
the - demands of our
the
aging population for new services
—all these and other responsibili¬
ties
Established 1917
being
are
ernment
at
Dealers
Distributors
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CORPORATE
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new
its present
responsibilities.
resources
—
and financial.
—a—
for
resources
that
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Between
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York
to one
human, material,,
We cannot take our
granted,
without
or
priorities. Paramount in preserv¬
ing our values is the belief in fi¬
nancial stability as an essential
of
a
social
system
built upon
order.
Without
that
stability,
there can be no solid growth, no
can
(Botute,
Without
achievement.
be
in our purposes, there
no balance, no equity, no
Government
the
cancer
fashioned
back
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and
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»»
1
.•; /
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piece
are
as
limits
government
a
on
BALTIMORE
SECufe^p
to me,
a
striking paradox, at least
that
Stein Bros.&Boyce
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since 1853
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every
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It is
MRYLAND
to
descrip¬
tion, without veering dangerously
close to pulling the rug from un¬
der the society we prize so highly.
;
» X -•
1Joiir 3n^uiriei
put
TELETYPE SH 494
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Government
\ State, County and Municipal Bonds
Public Authority and Revenue Bonds
so
ability-to-pay
dusted
render services of
BIRMINGHAM 3, ALABAMA
TELEPHONE fABTAS 2-4658
to
of inflation.
test
reminder that there
the
FIRST
do
can
much, and there is a responsibility
on
every citizen and every pres¬
sure group to think well on their
stake in a sound economy, free of
needs
foipoiate. SbcWuMjll
--
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adherence to realities.
State-,County- &
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assume
priorities
INCORPORATED
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they are
limits, or
expend them
thoughtlessly. ' In
every ordered society, there is a
sense
of values, a recognition of
secure
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without
The problem comes down
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MEMBERS OF NEW YORK STOCK EXCHANGE
and other leading exchanges
.
Volume
Number 5804
188
when it returns.
That
we
.
.
The Commercial and Financial Chronicle
.
can
sacrifice.
be
'C'-C'
'sure of.-
but
to
The Image of America Abroad
a
i
be
and
face
up
are
guided
by
men
we
is sliding downhill.
hard
.very
thing
atmosphere of thought,"
here.
As thinking
and women
alumni,
treasured
—
teachers, and students—you have
In your university, where per¬ both the opportunity and the re¬
spective
flourishes and
is re¬ sponsibility to come to grips with
spected, these problems can per¬ the issues of our times, and, in the
haps
be
most
wisely
thought process, to preserve, to illuminate,
through. The great ideas which
and to enrich this great, growing
inspired men
have bred from
and widely-shared American
intellect and vision, and in what
But it is
persuade Cardinal Newman called "a pure
people to become concerned when
their economy is showing boom
Continued from page 4
signs, [when wages are going up,
when money -=-x both private and
omy
:
facts
the
and clear
easily,
come
if
come
them.
We have always risen to tests
confronting us as a nation. Now,
it is easy-to recognize the signs of
danger-where aggression or open
war is involved.
We can equally
recognize danger when our econ¬
,
It will not
will
it
to
'
!
economy.
do
seeks .it: I How
The
dramatize
we
Ford Motor
Co., American Motors
and
Studebaker
Packard plants
our dollar?
'."v
fattened their assembly programs
.1 • Let me tell you that throughout
a
week
ago
with six-day and
the world; at this moment, our
overtime efforts.
i economic way of life is beginning
General Motors car production
to be doubted., In Europe and in
was prepared to reach its highest
; the East, the nations which have
level since December 3 to 8, 1956;
been victimized and demoralized
Ford
Motor
Co.'s
goal was its
I- by inflation are watching to see
greatest since
November.
1957;
whether the people of the greatest
American Motors was shooting for
free enterprise nation on earth
an
all-time
company
peak and
y will
face the present emergency
Studebaker-Packard programmed
I and deal with it effectively. We
its heaviest volume in three years.
% are being tested, and much hangs
The present assembly rates in¬
in the balance for our hopes of
dicate the four millionth car of
; persuading ; the
remaining outcalendar
1958
will
be: built
posts of the free world that our
Wednesday, December 17 declared
system can endure.
"Ward's." Through the past week
> V A year and
a half ago, in a
the total stood at 3,940,044. A fig¬
memorable
speech
in
Chicago,
ure approximately 4,250,000 units
v August
Heckscher of the Twen¬
for entire 1958 appears likely at
tieth Century Fund carried this
this time.
thought further, although in a
land its corrosion of the
value of
Steel
~
Output Expected to Increase
This
-
:
Down 50 cents, it
Week
.
to
75.4% of Ingot
were
at
operations
last
highest point
50%
of
months
Iron
and
I
1
:v••'•>? I
I
Steel
Institute announced that the oper¬
that
in
the
1958,
as
period in 1957
same
is off 39%
and; consumption
American
The
■
ating rate of steel companies will
average
for
the
*126.7% of steel capacity
beginning Dec. 15,
week
1958, equivalent to 2,036,000
Continued
for
on
tons
page
98
the
of the year
and the current week
about equal, "Steel"
magazine stated on Monday last.
Mills operated at 75.5% of ca¬
pacity, up one point from the pre¬
should
•
vious week. Production
2,038,000
out
0
be
of
was
private wire.
about
net tons of steel. Ten
12
steelmaking districts
reported
higher
rates
or
operas
tions at the same level as follows:
Detroit at 97%
of capacity, down
3
points; St. Louis at 94, up 6
points; Cincinnati at 86, up 4.5
points; Chicago at 85.5, up 0.5
point; Wheeling at 83.5, up 0.5
point; Western district at 79, down
1 point; Cleveland at 73.5, up 3.5
points; Pittsburgh at 72, up 5
"Ward's"
estimate
for
trucks
points; (Eastern district at 71, no
different context.
After specu¬
last week was 22,592 units com¬
change; Buffalo at 68.5, up 2.5
lating on the coming changes in
pared to a similar 22,596 count points; Birmingham at 65, up 2.5
American life, he said:
the week before. A strike-caused
points; and Youngstown at 60,
"In such a world, we shall never closedown of International Har¬
without change. '
„
y be able to escape the realization
vester
plants ^ entered its fifth
The
United
States
Supreme
that we are being watched and week the
past Thursday.
Court
gave
steelmakers a big
f judged. The underdeveloped coun¬
Through this week, 1958 truck Christmas
present
and assured
tries look to the United States
output stood at 820,456 units. The them a happier New York the
8 with eager but critical eyes.
We 12-month total will neighbor 875,past week in reversing the Mem¬
'jf export a revolution. Let us not 000 units, "Ward's" indicated.
phis decision.
? r
delude ourselves into supposing
The metalworking weekly ob¬
that we shall be able to escape
The dollar value of new con¬ served that a
resurgence of line
j spelling out at home the full con- struction Dut in nlace HooUned pipe demand in 1959- can be
; sequences of that revolution.
We less than seasonally to $4,400,000,- counted on as natural
gas com¬
cannot pause, even if we would. 000 in November from the
prior panies resume expansion programs
We dare not hold back.
Men's month's
$4,700,000,000,
but
ex¬
?
eight
against the
Capacity
Steelmaking
week
first
reported
off
are
ton.
gross
a
magazine
sales
scrap
the danger of threatened inflation
*
approaching 1959 with cautious added. Advancing technology has
optimism, the magazine reported. caught up with scrap and steel¬
Industry leaders anticipate a 5 to makers are using less of the ma¬
10% increase over 1958 sales, but terial.
Steel operations went up
price cutting on the retail level 59 % from October 1957 to April
and low profit margins are worry¬ 1958, while scrap usage increased
ing appliance executives.
only about 35%. Many big auto¬
"Steel's" composite on the prime makers and other large scrap gen¬
grade of s t e e 1 m a k i n g scrap erators are selling directly to steel
dropped again for the fourth con¬ mills, "Steel" magazine concluded.
stands at $39.17
| credit is available to anyone Who >
working management has taken a the first nine months. Inventories
at long range prospects and are up 25% above year ago levels
the future appears to be "so good as of Oct. 31."
Two
main
they want to get ready.
problems confront
The major appliance industry is the industry, this
trade weekly
look
secutive week.
publics-is flowing plentifully, and
.
W
(2813)
.
r
*
ROCTOR
j^BBOTT,
^
AINE
&
Members, New York Stock Exchange and Other Leading Exchanges
Investment Securities •
Municipal Bonds
•
Mutual Funds
•
Commodities
•
Underwriters
*
'
that
■i
hopes wait
upon us;
men's enmity ceeded
the
$4,200,000,000 of No¬
wait also, to see whether vember 1957, the United States
we shall fall short of the promises
Departments
of Commerce and
we have made.
Either industrial¬ Labor report.
At $45,000,000,000
ism shall prove in us to be capable the total for the first 11 months of
of achieving
leisure and abun¬ this year was nearly 2% higher
dance and dignity for man, or else than
the
$44,300,000,000 of the
stnd envy
*
r
.
shelved
were
lower court decision of November
1957
that
companies
could
raise rates without customer
Members
not
con¬
sent.
Previously,
six
months'
together with the freedom we comparable 1957 period. ;
notice was required and increases
upheld, shall do down in
were
subject to review by the
'•! history as a tragic failure.
With
Although the number of new Federal Power Commission.
that alternative before us; is there business incorporations fell notice¬
Pipeline. people lost much of
i
any choice but to summon all the
ably in November from the prior their zest for expansion. The com¬
:
wisdom, all the humanity we are
bined forces of law and recession
month,
the
level was
sharplycapable of, and to bring these
pulled line pipe shipments down
f fierce energies and this feverish above a year ago and the highest from 1957's record
high of 4,200,f. plenty into the full light of the for any November on record. The 000 tons to this year's estimated
i Service of man?"
: v
number of new charters issued in
;
Established May 20, 1893
13 months ago.
Shipments of line pipe may jump
30%, it declared.
The Supreme Court reversed a
New York Stock Exchange
.
American Stock
we,
Exchange (Associate)
Richmond Stock Exchange
have
.
.
.
Buford
R.
James
Walter S. Robertson
Scott
Marion N. Fitzgerald
Thomas
D.
Neal
"
H.
Scott
L. Thornton Fleming
Joseph J. Muldowney
Eldridge Longest
.
,
.
j
-
Conclusion
.
I
2,600.000
November
have
in
faith
our
power
to
If
growing economy.
there is a danger, it is one of our
own
making. We can become so
sustain
a
absorbed
by
his strategy is a triple-threat of¬
fensive.
We must match realism
realism.
12,090,
There
victory without
some
can
be
no
cost, some
or
October's
from
down
all-time
record of 14,951, but exceeded the
115 Mutual
tons.
ing and casing hope the revival of
pipeline programs will
Richmond, Virginia
Building
Telephones Milton 3-1811 and L.D. 3
Teletype RII 190
Manufacturers of drill pipe, tub¬
Mail: P.O. Box 1575, Richmond 13,
Virginia
interest in
also
mean
better
business
for
\
Private iFire to Clark, Dodge & Company, New
York City
9,270 of November 1957 by 30.4%, them.
For
the first
11
the illusions of
growth that we may lose sight of
the realities. Our opponent across
the Iron Curtain,is a realist, and
with
19.1%
was
year,
came
6.1%
new
to
company
133,822,
over
months
or an
of
this
formations
increase of
the 12o,122 of the sim¬
ilar 1957 period. The current level
is the
on
highest 11 month aggregate
record.
About
one-third
of
United
States
metalworking plants will
expand in 1959, a "Steel" survey
shows.
Of those, 10% will build
new plants; 35% will make addi¬
tions
and
70% will buy equip¬
ment.
In all, plant operation ca¬
pacity will be hiked 2,6%. Metal¬
'
4
VIRGINIA—WEST VIRGINIA
NORTH and SOUTH CAROLINA
",:V
Municipal Bonds and Corporate
;
Securities
..Local Industrial &
Utility Stocks
q
•
MUNICIPAL BONDS
Trading Markets
F. W.
t|
Retail Distribution
/I
-f
[
'
I
CRAIGIE & CO.
DEALERS
STATE and MUNICIPAL BONDS
■
V-
*5l'f\
515 EA5T MAIN STREET
i&x?Milton
3*2861
-
i
IN
RICHMOND 15, VIRGINIA
Teletype RH 83 A 84
STRADER and COMPANY, MC
LYNCHBURG, VIRGINIA
:
LD 39
—
Victor 6-1333
-
TWX IV 77
M
M
The Commercial and Financial Chronicle
(211
Continued
jrom
in
IBA GROUP
CHAIRMEN
NORTHWEST
ROCKY MOUNTAIN
CALIFORNIA
of ingot and
on
compared
as
actual rate of
with
week
Output for the week
15,
75.4%
Jan.
1958
of
1,
is
the
1958
equal
annual
production
week
before,
rate
i
like week
For the
the
tons
a
*124.5%
was
duction 2,000,000 tons.
ol
compared
of
73.5%
and
pro¬
A year ago
Crocker-Anglo
National
San
placed at 1,742,000 tons
George S. Writer
Peters,
Bank,
Writer
or
108.4%.
Charles W. Easter
with
and
&
Blyth
&
Inc.,
Co.,
*Index
of
production is based
weekly production for
Seattle
on
Denver
average
1947-1949.
INQUIRIES
The
by
electric
electric
the
J
estimated
Above
to
13,450,000,000 kwh.,
the Edison Electric
Institute.
Output last week re¬
corded a new all-time high record.
The previous all-time high was
reported in the week ended Dec.
6, 1958 at 13,017,000,000 kwh.
For the week ended Dec.
13,
1958 output increased by.433,000,-
^wyyyyj&y^yyy^.yy.vyj.v.^vy,,,..A'ZZ'S.'V
wmmr
.
SteinBros.&Boyce
Established
000
1853
kwh.
vious
above
week
that
and
by
of
the
pre¬
880,000,000
'
Starks
kwh. above that of the comparable
1957 week
and by
1,230,000,000
Building, Louisville 2, Ky.
Telephone JUniper 5-5331
Teletype:
LS 281
kwh.
above
ended Dec.
that
of
the
week
15, 1956.
Car Loadings Rose by 10.3% in
Post-Holiday Week Ended Dec. 6
Member
1st
Midwest Stock
Exchange
Floor, Kentucky Home Life Bids.
LOUISVILLE 2, KENTUCKY
Bell
Teletype LS 186
JUniper 4-0226
t
■
...
_
Kentucky Municipal Bonds
Local Securities
INVESTMENT
THOMAS
DEPARTMENT
GRAHAM
POWHATAN JL CONWAY
CHARLES
HECTOR W. BOHNERT
JAMES M. FETTER
WILLARD P.
Mrs. E.
Mrs.
C.
McNAIR
OSCAR
LEWIS
feLINORE
C.
C.
CLARENCE
SEDLEY
KING
WRIGHT
EUGENE L.
G.
TAYLOR
COLCORD, Jr.
Shipments Rose 1.9%
in the Holiday
"Ward's."
Last week's
Output
DISTRIBUTORS
DEALERS
AND
six
of
nine
the
less
of
failing
were
off
thah
numerous
last
year.' Con¬
at
annual
an
10,000 listed enter¬
fractionally : from
1957.
-
the
t:
-Despite the downturn
in
num¬
ber of
■
bilities
6,
1958
were
1.9%
above"
group was also responsible for the
production, according to the "Na-- 7%T increase in liabilities from
Dec.
tional Lumber Trade Barometer."
November
In
Bradstreet, Inc., reports.
the
period
same
3.1%
new
orders amounted
filled
Production
stocks.
orders
orders
previous
to 33%
was
of
14.8%
Wholesale
dined
13.2%
and
1957.
in
declined to 267
the
week,
than
&
Dun
occurred,
above
with
were
last
but
off
Index
Last
De^
Year
.
Straight
&
price
for
Week
r
slipped
week,
below
and
1.1%
0.2%
from
below
last year's
the
$6.45
$6.38 of the
;
wholesale
in
cost the past week were
oats, bat**
Bradstreet,
slightly ley, hams, butter, sugar, milk,
cottonseed oil and hogs. Lower in
when 269
price were flour, wheat, rye, bel-,
continued
year
Compared lies, lard, coffee, cocoa, eggs, po¬
tatoes and steers.
level;"failures
The index represents, the sum
1% from the total of 27(X
1956.
prewar
Liabilities
of
$5,000
total
31
or
of
raw
the
price
pdr
pound
<?f
foodstuffs
and
meats
in
more
involved in 229 of the week's,
general
is
to
use
show
and its chief function
the
general
trend
of
casualties, falling from
254
in
food prices at the wholesale levOl.
the previous week and 235 a year
ago.
On the other hand, small Wholesale Commodity Price Index
failures under4 $5,000 dipped to 38
Recorded Further Losses in
K .y
from 40 last week, but exceeded
Latest Week
^
.
the
34
this
of
Twenty-three
size
in
cerns
had
of the failing
1957.
liabilities
in
con¬
excess
of
The
The most noticeable decline from
last
by 4,752 units, while truck output
declined by 4 vehicles during the
In the corresponding week
South Atlantic States reported the
car
year
sharpest
from 1957.
failures, running
rise
Business
con¬
level
general
bean
fell
trading.
After several weeks of
sluggish
activity, flour Trading picked up
noticeably during the week. There
was
a
slight rise in export sales
to Venezuela.
Flour prices rose
MUNICIPAL
SECURITIES
INVESTMENT
BANKERS
1929
FOR
1959
Trcp A -DO
Clement A. Evans 6c Company
incorporated
mas°n-Hagan
ESTABLISHED 1932
Members Midwest Stock
Exchange
INVESTMENTS
ATLANTA
Murray 8-5185
augusta
UNDERWRITERS
Teletypes:
macon
savannah
.
r
wholesale
Bradstreet
index
week, preceding week.
Moving upward
in the similar week of 1939.
were
Price
were
they
the 249 in
the
Dun
down
ended Dec. 11 from 294 in the pre-,
Inc. noted. Casualties
Food
Below
that of the similar date a year ago.
On Dec. 9 the index stood at $6.38,
Commercial and industrial fail¬
ceding
&
Dun
ago,
For the second consecutive
the
food
Turned
Failures
Business
above
Downward the Past Week
lower
year
Second
11.5% above the
were
week
the like week in
ures
a
above production. Un¬
occurred in the East
North Central States, whereas the
week.
CORPORATE
year.
;
output dropped
under that of the previous week
UNDERWRITERS
this
commodity price
moderately again the
the week ended Dec. 6, 1958 were $100,000 as against 28 in the pwi- past week, for the third consecu^'
tive weekly decline. The decrease
55,285 cars or 10.3% above the ceding week.
»
was attributed to lower prices of
Retail failures dropped to 122
preceding holiday week.
lard, hides, cotton, rubber : and
from 155 a week earlier, construc¬
Loadings for the week ended
steel scrap.
On Dec. 8, the daily
Dec. 6, 1958 totaled 594,476 cars, tion to 40 from 48 and commercial
wholesale commodity price indejc,
service to 19 from 23. In contrast,
a decrease of 23,360
cars, or 3.8%'
compiled by Dun & Bradstreet,,
toll
under
the
among
manufacturers
corresponding
1957 the
Inc., stood at 275.41, compared
week, and a decrease of 143,775 climbed to 54 from 40 and among with 275.64 a week earlier and
wholesalers to 32 from 28. More
cars, or 19.5% below the corre¬
278.46 on the corresponding date
businesses failed than a year ago
sponding week in 1956.
last year.
in manufacturing and trade lines.
Mixed trends prevailed in grain
Car Output Curtailed the Past
Only
construction
and
service
Week by Labor Trouble at
mortality
dipped below 1957 prices during the week. Although
trading
was
unchanged,
corn
levels.
Chrysler Plants
prices closed slightly higher than
Geographically, all of the weekin the prior week. Improved mill'
Passenger car production for the
to-week
decrease
was
concen¬
week ended Dec. 12, 1958, accord¬
trated in four regions. East North demand, increased flour bookings"
and better export trade resulted
ing to "Ward's Automotive Re¬ Central casualties fell to
30 from
in a fractional rise in wheat prices.
ports," was cut by strikes and
47, West South Central to 13 from
production halts stemming from
Supplies of oats wer*1 Uebt and'
20, Pacific to 68 from 74 and New
strikes at Chrysler plants.
prices edged upward. The call for'
England to 8 from 14. Increases,
oats was close to that of a week
Last weeks' car output totaled on the other
hand, prevailed in
142,609 units and compared with five regions, inducting the Middle earlier.
147,361 (revised) in the previous Atlantic States where the total
Reflecting the strength in., the
week. The past week's production
edged up to 97 from 95. Trends meal market, soybean prices
total of cars and trucks amounted front a
matched those of the preceding
year ago were mixed with
week.
Wholesalers in most mar¬
to 165,201 units, or a decrease of three
regions
suffering heavier
4,756 units below that of the pre-- casualties, five had lower failures, kets and especially Minneapolis,
vious
week's
output, states while one area reported no change. reported a marked decline in soy¬
Loadings of revenue freight in
THE
cerns
This compared
Week Ended Dec. 6, 1958
:
light
at
according
KENTUCKY
AND
4%
were
November
rate of 56 per
Lumber
energy
and power industry for the week
ended Saturday, Dec. 13, 1958 was
/SECURITIES/
X/
of
amount
distributed
LOUISVIUE
ties
in
rate, in
new
Time High Record in the
Past Week
YOUR
in
and
-
22,592 trucks made in.
above; shipments 1.5% above and
Electric Output Set a New All-
WE INVITE
reported
toll
types of business except ^con-
22,596 in the previous week
prises,
22,691 a year ago. - 1
r 'V''.
were
Christensen, inc.,
Francisco
the agency
week
were
lowest
1,121,
to
major geographic regions. Casual¬
assembled.
were
Last
there
•11
struction
the
the actual weekly production was
Alger J. Jacobs
trucks
second
rise
seasonal
12%
The decline occurred amopg con¬
cerns of small and medium
size, in
and 22,691
cars
usual
casualties, their dollar lia-*
climbed 20%' to $56,700,000 in
November, boosted by a.'
v
*
Lumber shipments
of 464 re-1 rise in failures involving liabil- i
month ago
porting mills in the week ended- ities above $100,000. This size
net
the
of
capacity
140,742,570
with
actual
about
to
145,503
year
the United States.
ago.
beginning
utilization
last
an
*123.6% of capacity,
and 1,985,000 tons a
Dec.
(based
weekly production for
average
1947-49)
steel castings
the
to
November, fell
the
The State of Trade and industry
PACIFIC
Thursday, December 18, 1958
trary
97
page
...
348-349
1110 EAST MAIN
DEALERS
STREET
RICHMOND, VIRGINIA
orlando
T.I«pHon* Ml 0-2841
DISTRIBUTORS
MEMBER:
Richmond
Stock
TLW
RH-AOO
Exchange, Philadelphia-Baltimore' Stock Exchange
Number 5804
188
Volume
.
.
.
The Commercial and, Financial Chronicle
South
Central
(2615)
and week. Volume was equal to that
0%. ofjast year. Interest in floor cov¬
Shoppers stepped up their buy-: erings, furniture, linens and most
operated.' at 92.5%
of capacity
compared with 93.3% in the prior ing of women's sportswear, housewares were sustained at the
month and 88.7% in October 1957. dresses, lingerie and fashion ac¬ preceding week's level. Although
There was a marked rise in rice cessories. The volume appreciably interest in lamps and lighting fix¬
exports
during
the week,
but exceeded that of last year. In¬ tures moved up appreciably, the
prices we r q, 4jnchanged. Although creased purchases of men's fur¬ buying of refrigerators, laundry
purchases of cocoa were steady, nishings and topcoats during the equipment and television sets held
fractionally
stocks
as
mills
Flour
duced.
were
in
re¬
October
prices declined somewhat.. A mod¬
erate expansion in sugar trading
occurred and snot prices moved
up into higher ground.. Following
a.
din
•moderate
in
sales
the
at
New
England
—1
to
43;
over-all
week
boosted
clothing
sales
moderately'
unchanged
up
from
There
of
over
a
was
GROUP
CHAIRMEN
NORTHERN OHIO
PENNSYLVANIA
OHIO VALLEY
earlier.
week
a
minute
last
IBA
WESTERN
in
rush
re-orders for toys and volume was
that of the similar 1957 week. The
call,, for
r4
States s—4- to
men's
was
99 |
moderately
children's merchandise
somewhat with the most
higher
in
than
the
similar 1957 week,
Food buyers stepped
up their
level, coffee prices -noticeable gains in boys' -slacks
and
sweaters
and
girls' dresses orders for canned goods, frozenslipped da-ring ttie week.
*
foods and fresh proouce the past
ard skirts.. ,4 ; •The Jsalable, supply of hogs in
4 V'-h '4; 4"
phicago rose' noticeably from the > Furniture stores reported mod¬ ,week. Interest in dairy products,
w
wholesale
.
•
prior week and prices,
as
con- erate
a
year-to-year
gains
l'resh
in-sales
moderately. of occasional' tables and chairs,
Cattle receipts-were off a trifle, but interest in upholstered chairs
but prices remained close to the tand bedding was down somewhat.
in
television
preceding week. 'Lamb
trading 'Although - volume
was sluggish and prices registered
sets, lamps and lighting fixtures
moderate losses.
'
climbed over last year, the call
Cotton prices on the New York for most other major appliances
Cotton Exchange fell during week was down somewhat. Slight yearto the
lowest levels since early to-year declines occurred in floor
•
Influenced by
spective sharp rise in
August.
duction
and
market,
the
pro¬
crop
pro¬
gish
buying
2,
amounted to about 56,000 bales
compared with 87,000 bales in the
prior week and 80,000 in the sim¬
ilar
activity,
export
appreciably.
Exports
of
during the week ended Dec.
of
an
toys
a
year
Total
ago.
ex¬
and
s-cocoa
coffee
held
poultry
call for
floury"
slipped slightly.
'
Department stores sales on a
Country-wide basis as taken from
the
Federal
dex
1958
Reserve
the
for
week
advanced 7%
Dec.
6,
By Cold Weather and Sales
the
above
from
level
of
a
year ago.
moved
sales
Food
up
week earlier.
a
from that of the 1957
slightly
Housewives
were
reported
a
According
store
The
men's
and
most
gains
the
the Federal Re¬
index, department
New York City for
ended Dec. 6, 1958 in¬
to
week
rise
creased
by 9%
from
like period last year.
ceding
week,
increase
of
Nov.
1%
that
(revised)
marked
of
women's
apparel,
tra¬
and
coats
suits
gain
wholesale.
Winter
resulted
in
in
at
The call for children's
clothing
climbed
J.
an
re-orders
some¬
■
J.
was
away
Augustus Barnard
following
what with principal gains in girls'
nard:
sweaters and skirts.
again
.
a
Total
trade
year
in
a
the
from
ended
on
spot
Dun
&
Bradstreet,
Regional
the
estimates
estimates
comparable
1957
sales
45;
East
Pacific
North
Coast
Central
-fl
and
West North Central 0 to 44; West
trading slack¬
but
remained
of carpet wool
There
was
a
were
industrial
fabrics
:
reported
were
man-made
dyers
that
sustained
was
ner
in
and
incoming
at a high
level.
Member New York and Midwest Stock
Exchanges
Associate Member American Stock Exchange
Tax-Exempt Bonds—Investment Grade Common Stocks
419 W. JEFFERSON ST.,
Masonic Building1,
LOUISVILLE 2, KY.
Owensboro, Ky.
lift
limited
a
&
partner
in
UNDERWRITERS
DISTRIBUTORS
First Southeastern
W. Pierce, limited part¬
Tucker, Anthony & R. L.
Day, passed
away
Dec.
1.
SPECIALIZING
C.
will acquire
Laubc
Company
MUNICIPAL AND CORPORATE SECURITIES
Walters, Peck & Co. Partner
Bradford
DEALERS
Dominick.
on
Dec.
IN
SOUTHERN MUNICIPAL BONDS
24
membership in the
New York Stock Exchange and
will become a partner in Walters,
a
GEORGIA
FLORIDA
ALABAMA
NORTH AND SOUTH CAROLINA
Peck &
Attracted
openings in New
York City, buyers stepped up their
orders
for
draperies
the
past
by
York
York
Co., 11 Wall Street, New
City, members of the New
and
Midwest
changes.
Stock
Ex¬
First Southeastern
MEMBERS
Trust Company
TELETYPE
JAckson
DIRECT
.
.
.
NEW
YORK
EXCHANGE
National Bank
Fourth
Building
Georgia
Columbus, Georgia
AT
TELETYPE
1196
FAirfax
4-7991
PRIVATE
GEORGIA,
Corporation
STOCK
of Georgia Building
Atlanta 3,
Specialising in
1672
Barnard
Harold W. Pierce
Harold
HILLIARD& SON
ESTABLISHED
in
goods, wide
and
Mid-Atlantic
finishers
steady.
decline
moderate
orders for cotton gray
orders
and
week,
steds slipped during the week, but
v-f-6%; East South Central -f-3
-j-7; South Atlantic +2 to 46;
Mountain
textile
somewhat higher than a year ago.
Transactions in woolens and wor¬
fibers.
ages:
to
retail
by the following percent¬
Middle Atlantic States +4
levels
to
by
of
to 4 Over-all
ened
last
1% to 5% higher
ago,
reveal.
varied
to
period
up
close
,
volume
was
year
collected
Inc.,
volume
ago.
dollar
.Wednesday
than
the
with
that of
moved
-
passed
at the age of 87
long illness. Mr, Bar*
a
Dominick
cars
Cincinnati
J. J. B.
re¬
■
•
Augustus
Dec. 3rd
o'f
passenger
Field, Richards & 'Co.,
;
Investment Service
*
cording to scattered reports, sales
new
Charles A, Richards
•
& Co.,
Cleveland
the
In the pre¬
29, 1958, an
in
in .appreciable
ditional gifts, toys and lamps. Ac¬
Reid
Inc.,
Eighty-Six Years of
suits
noticeable
occurred
Jack R. Staples
Fulton
In Louisville Since 1872
sales in
•
ago.
^
period.
Board's
serve
■
year
&
A
.
year-to-year
Lestrange
Co., Pittsburgh
above the like
ported. For the four weeks ended
orders for men's Spring
Dec. 6,
1958 a gain of 2% was
during the week and volume noted. For the
period Jan. 1, 1958
Promotions
-moderately exceeded that of a to Dec.
6, 1958 an increase of 2%
Cold weather. and sales promo¬ year ago. Re-orders for men's fur¬ was
registered above that of the
tions'spurred Christmas shopping nishings matched those of the corresponding
period in 1957.
"
"
last week and total retail trade prior week.
V
The recent upsurge
in the buying of women's Winter
rpoderatelv exceeded that of a
.
Arthurs,
in the a gain of 3% was .registered. For
traditional the period Jan. 1, 1958 to Dec. 6,
no
the week, 1958
change
was
recorded
gifts occuired during
expanding sales substantially
Wholesalers
Trade Volume Aided in Past Week
Addison W. Arthurs
Board's in¬
ended
upsurge
and
primarily
interested
in
ports for the current season to canned fish, vegetables, baked
date came to about 1,055,000 bales goods and some dairy products.
as compared with
1,743,000 in the Volume in frozen foods, fresh meat
and poultry remained unchanged.
comparable year ago period."
week
and
the
period last year. In the preced¬
ing week, Nov. 29, 1958 an in¬
coverings, linens and draperies. crease of 1% was reported. For
Following several weeks of slug¬ fhe four weeks ended Dec. 6, 1958
dipped
cotton
sluggish
trading
a
cotton
meat
;
steady,- but
sequencer declined
WIRE
FRANCIS
TO
I.
NEW
DU
YORK
PONT
CM
6094
7-3626
CORRESPONDENT
&
CO.
Alabama, Florida, North Carolina,
South Carolina, and General Market
MUNICIPALS
Distributors And Underwriters
Trust Company
Investment Securities Since
of
New York
Telephone: HAnover 2-1561
JAckson 2-6000 and L. D. 521
Bell Teletype
AT-283
The Robinson
-
-
Humphrey Company, Inc.
The Bank Wire
Teletype: NY 1-2712
Private icire Atlanta
Georgia
Telephones:
Representatives
15 Broad Street
Bell
1894
RHODES-HAVEKTY BUILDING
New York
ATLANTA
JACKSON
2,
GEORGIA
LONG
1-0316
Bell
Teletype AT 268
DISTANCE 421
100
Continued from
first
our
We Mast Preserve
Reserve's
Federal
The
ute, so far as it can, to sustained
economic
the
waste
without
progress
painful setbacks that mean
of human and material resources.
Integrity
seeds of inflation
were
the
are
can public demands as well. Certainly I do not question it myself,
operate.
Rising interest
rates, when they reflect a response
to
artificial
When
Price
Stable
Level Is
.
v
-
Printing Paper Money
complicate
If
our
progress.
to
continue
conditions
in taxes or reduce other proinstead of giving I.O.U.'s
or
simply printing more paper
probably stay about where they dollars? That also is something to
are, and if business begins to de- think about.
cline interest rates will decline.
Now let's discuss this matter of
But let us not be carried away the budget.
No reasonable man
into thinking that interest rates believes that budgets can always
are such a dominant force in the
be balanced. Likewise, no sensiimprove it is normal to expect in-
pay
terest
grams
rates
to
rise; if business
stays where it is interest rates will
get people to work and give leaned against the wind whenever
them jobs
which will be per¬ it has been clear which way the
was
blowing.
In 1957-58,
manent and profitable. How easy wind
this would be if we could only when a decline was under way,
achieve it by just spending more we pursued an easy money policy,
in order to give whatever assist¬
money. Unfortunately experience
has demonstrated
you
cannot ance an enlarged availability of
upend yourself rich. Lasting pros¬
perity
only
comes
from
hard
work, producing goods and serv¬
ices which people need and want
give to alleviating
laying the ground¬
work for recovery. This was large¬
tional
Product
goods
and
produced for the
*
"V"
vff.vlv/. v.*«v.
""
without
addi¬
distress
services
being
The
consumer.
us
Let
lief
would like it to be.
us
that
not succumb
these
to the be¬
unemployed
peo-
*vAwa<v.-.v.v.v.v.v.<;v.v.v.v.*;v.v,v.v>/.v;*:*:#.v:;v;^;v;v;;^
some
possess
employment,
and
unemployment,
pacity—at high
of
use
ca-
or low levels. To
it is vital that we understand
me
this crucial
point.
Notes Foreign Distrust
A
and
ly achieved
of
that .they
that they alone can de-
so
termine the level of
could
money
by the end of April
at prices they are willing and able of this year. Accordingly, Federal
Reserve policy was modified, as it
io pay.
At the moment we have
unused capacities in industry and always should be, in adaptation to
larger
levels
of
unemployment the change in economic condi¬
At the present time, with
than we would like to have. Why tions.
has this come about? Because of increased demands for funds, with
productivity, we are
light money? Not a bit. It has improved
a
strong
economic
come about because
inflation got witnessing
comeback and we are now begin¬
ahead of us as evidenced by the
fact that at one time in 1957 we ning to see a gratifying decline' in
unemployment figures, although
were losing more than $1 ■ billion
a
month in prices in our Gross the total is still, higher than any.
National
economy
magic
recent
tries of
trip to several coun-
the
welcomed
Far East
me
gave
BIDS AND
OFFERINGS
a
and certainly I
think it is not—it is important to
recognize that this feeling exists,
way
others
as
see
see our-
we can
One dis-
us.
is
tressing experience was to find
intelligent and perceptive
men in those countries a growing
among
distrust
over
the
it
is
justified
the
of
future
Whether
American dollar.
not
or
—
policy for
A decline in the value of the dol-
have
can
^
tt
•+
United
suggest to him
a
deqline
+1 an4 cr.e- J °
signaling m
cn
.
I
which
have
we
ditioned
American goods
that restriction,
Securities
You
Department
for
ain
British
Union Planters National Bank
Memphis 1, Tennessee
DISTANCE
218
&
502
BELL
sion
about
that
this
directed at
a
year
be
con-
—
_
justifications
for
and
at
a
best
I
sometimes
good bit of wish-
involved-there
can
no
deficit
of
0f
becomes
inflation.
decision
this
Once
fIjnPtinn
wbeei
ac
of
began to
pr0Cess
the flv-
Governor on
a
the
and
economy
our
taken,
was
crecjit mechanism
^he
almost
became
of stabilization became a
fuel
on
the
Pf,mnelled
arp
we
vmf
alter
can
^and
the^
reooenize
to
it
like
whether
or
that
not
nature
of
de-
change the composition
and
of ~nDniv but vou can no more ic-
„orSpX
mnnd
™a™
law
than
can
Tnd
de-
ignore the law
•
you can lg"°ie We ,a1*-
8
fire
sudpW
of
vou
:
'
'
< ;
.
"That's Different"
In
effect, it pumps
air into the business structure as
if it were a balloon and eventual-
Sometime ago a top
who
industrialist
bitterly
complained
had
about rising interest rates told
same
when
the
balloon
pops
than me he now recognized that some
Brit- would have occurred if it had not adjustments were probably desirly leads to more serious recession
the been indulged in.
before
thi
Again let
t Dleasant
.
me
but with
able> but he said'
ab°ve_ 3%-
f®4 rates
Althoy£b
^ not pleasant, out witn there are technical differences bedue respect to these people who tween the commodity he is manutalk about modern times and out- facturing and this man-made demoded classical theories what I vicc of
A
h'm how
®ay'
But it is something for us to
concerned about.
nm
am
saying
is
is
base(1
cased.
on
on
time hon.
time non
he would down it if the Governlike a decree that the
menf jai(j
ored and time-tested principles product he was manufacturing, retbat are as valid and inescapable gardless of cost and price factors,
Fear Deficit
a
,
question that when business
is improving and moving actively
toward
higher levels, a budget
be
got into trouble and had
the pound sterling. I
WIRE SYSTEM— THE BANK WIRE
the
thinking
lul
don't think it is going to happen
here. I wouldn't talk about it if I
99
lsnt true.
gradually
supply
hesitation in stating
face up to the reality
think there is
devalue
to
did.
TELETYPE—ME
was
we
Wp
would, except for
recall
will
sort of talk
too,
deficit financing in time of reces-
already be turning elsewhere for their purchases,
Bond
LONG
loans
purchase
eat it
tax structure to produce more
Whatever
countries to
made
the
upon
no
and
a
ing which regulation of the money
revenue or reducing the priorities useful part Qf the adjustments
of somf things Programs until we necessary in a healthy economy,
°ther in better balance.
can
get
.
Two matters
some
have
our
uppermost.
told that
was
cake
of either raising taxes or revising
S, '
t
our
Hx7y' must
We
his
mind a decline not only in American economic strength but also in
States,
One was a
necessarily at
the moment but in a fairly short
time and more markedly in the
extending future, American goods
are
going
to
find
themselves
priced out of the market. Indeed,
United States Government
it by Government
period of years dur-
ineffective.
lar would
conviction that, not
Municipals
denied
been
foreigner, much more gardless of what facile justificaAmericans, the dollar is a tion or technical obscurantism is
symbol of this country's strength, used to persuade us that we can
appeared
and Arkansas
than by printing money. Re-
the
To
than to
the basis of distrust.
Mississippi—Tennessee
possible to ignore completely
the workings of the market place,
Interest
rates
are
the prices
charged for credit.
They are a
wage to the saver as well as a cost
were
afford to expand whatever economy.
required for national defense
The most striking illustration of
and foreign aid.
Naturally we their usefulness and effectiveness
don't want waste in these proj- in recent years occurred nearly
ects. Whatever is required we can eight years ago when the decision
afford to spend, but we cannot af- was made to unpeg our Govern-r
ford to spend it if we are unable ment securities market. This reto find the means of paying for stored to that important market
these expenditures in any other some of the influence which had
selves
opportunity to
j
FIRM
j
to the borrower.
In a private
enterprise economy they are established by the interplay of market forces. They perform the imble person believes that an unbal- portant function ;of influencing
anced budget is a desirable way the volume of credit that flows
of life. This, of course, has moral into specific channels of enterconnotations as well as economic, prise. They are essential to pric-^
We are a rich country. There is ing the assets v on which holders
no reason to be ashamed of it and expect to receive income over a
we do not need to apologize about succession of years. It is through
it.
We must recognize that some flexible rate movements that the
people in our society are not as incentives and disincentives are
rich or well off as we would like provided for balancing out supthem to be. As a nation, however, ply and demand factors in our
,
io
:•
shilly-shallying around about this
matter of interest rates and faced
up to realities. We have had far
too much talk about so-called
"tight" money and "soft" money
without adequate understanding
of the role of interest rates in our
economy.
We already have too
many preferential interest rates
The question that I ran into
was something else: since Americans clearly can afford these expenditures, why don't they pay for
them?
That is, why don't they established by statute as though it
pre-
well lead to
would
which
Misleading business
many
forces
vent their rise it may
rather than assist
Let us not be misled by com¬
types of unem¬
ments to the effect that the con¬
ployment and many causes of un¬
sumer price level
is now stable.
employment. All of the factors
The process of inflation in this
that go into unemployment must
country started over 10 years ago
be carefully considered and sym¬
during our war-time period and
pathetically studied. For residual
with
minor
interruptions- from
unemployment, or temporary un¬
time to time has persisted ever
employment, we have unemploy¬
since.... •
,:
. r
ment compensation benefits^ The
The
Federal
Reserve
System
major problem, however, is how
There
and for social benefits the Ameri-
to
knots
inevitable.
was
on
_
ket
ness.
Thursday, December 18, 1958
.
.
improving business conditions,
sprouting have never been a sign of weak-
temporary over-capacity
which we now have and a decline
into
money.
that permit the forces of the mar-
The Dollar's
paramount purpose is to contrib¬
be
economy
concentrate
to
...
abroad or at home questions the today as they have been down
ability of the richest country in through the ages.
,
the world to "afford" whatever
.
amounts are needed for the naRealism Toward Interest Kates
fundamentals tional defense of the United States
Likewise, it is time we stopped
assisted by flooding
with a stream of
The better way to
get these people back to work is
will
pie
page
easy
truth.
Chronicle
The Commercial and Financial
(2616)
The other thing cited to me as
reason
for foreign distrust of
America's
ability or will to pre¬
buying power of; the"
the $12 billioa deficit
that: has developed in*' the United
serve :
the
ir was
h
/.'•
Underwriters
|
Distributers
V
T.
TENN-
Firm Wds-
,
ark.
'"rHmm
feKdMiss, mMm
I
.
-
Dealers*^
that further
4
It j was amazing to me how
closely our budgetary develop¬
ments were being followed in. such
remote
areas
as
Thailand and
i;
Firm
Offerings.
Quetatiens
General Market Municipals
i^
'-t
fat:
vfer'*-
Hong Kong, and how many peo¬
ple there knew our precise budget
figures better than most Ameri¬
cans.
United States Government Securities
Pi1".*v
budget, plus possibilities
deficits may follow.
.States
\
,v
;
a simple fact of hunature has added intensity to y
Of course
man
.
their
interest.
They
all
iM':\
.«-«
.;
know,
through personal experieiieej of the stern lectures Ameriba
has- giyeh: foreign; countries
jabout ; their need * to .have -the
many
THE
•
.
4-
moral fiber, to put.
First National Bank
OF
MEMPHIS
natural
t
I TELETYPES,1^283
their finances
And, as a widely trav¬
eled! American businessman: rebehtiy suggested to me, ,it: is only
-
%
ME.284
TELEPHONE JAckssn 5-8S21
that
foreign
countries
Should be Wondering if we have
the bapaeity^ to take the medicine
we have so freely prescribed for
others."
Now
<■
I
don't
think
.
•.<•-
anyone
i
,
/
i
cc>
-
-
*n-
<
(t
in order:
Kirkpatrick,
Ufe & Casualty
TELETYPE NV m
Tower
~k
'★
<■
;H' I
;
^ ^
ILfhN MJ11 aMI MtH (TraMf Btpt.)
i
Number 5804
188
Volume
.
.
The Commercial and Financial Chronicle
.
(2617)
the -public road to improving this situation. before that the eyes of the world
The only, an¬ However, the progress we have are on us. Responsible officials in
already made gives rib ground for many countries are/ watching us
swer I received to this suggestion
was "That's different."
' J: complacency.
Improvements
in closely to see whether we intend
Now I want to go one step fur¬ business efficiency effcted during to practice what for many years
the sharp but short recession are we have
preached to them.
The
ther and talk about the most diffi¬
cult aspect of all of our problems. helping in the current recovery future is not entirely within our
could
a
sold
be
not
above,
to
fixed price.
movement that is
This is the subject of confidence.
It
All of
responsible
hysterical
and
indi¬
down
We
confidence..
more
are
likely ot reeognize them than we
the equally
are
irresponsible indi¬
us,
Our
success,
'
..
The
no
.
one
doubt
can
7' .'777 7
..
recent
at¬
quarter.
on
these
one
forward
press
sound lines and
viduals who contribute to tearing
Federal
determined
tention in more than
Let
on a
And it is not
that "the
any
budget is getting
know of cases of ir¬
us
to
news
because
upsetting confidence by discussing
it.
continuing
rather broad hasis.
.subject we frequently
we/are .afraid of
is, the
avoid
101
trip
to: which
referred impressed on me
I
as never
control but
do have
we
IBA
GROUP;CHAIRMEN
CENTRAL STATES
MICHIGAN
MINNESOTA
it within
our power to maintain the in
teg-;
rity of the American dollar if we
have
the
unless
will
to
do
it.
Until
or
the
people, through the
Congress, change the Federal Reserve Act
I can pledge to all of
,
that the Federal Reserve Systern will do everything in its powyou
to
er
safeguard
our
currency.
viduals who over-paint, over-sell,
over-emphasize the optimistic side
of things in the name of inspiring
confidence. In any event, confi¬
dence is perhaps the fundamental
factor in money and
currency.
Those of us who are charged With
Continued
jrom page
Erwin A. Stuebntr
responsibility for our monetary
recognize
this
clearly.
Money must not only be a me¬
affairs
dium of exchange and a standard
of
value^ but - it must be some¬
.■,;
are
confidence.
77777'T
:
transactions
conducted, cannot be identi¬
should there be
;
as
hard
a
terms
a
Yet
deterioration in
currency.
sterling expressed, in
of
dollars, the volume of
Because
of
the
interrelation¬ world trade would shrink, prices
ships of interest rates and' budgets .would he adversely affected, pur
and the ^present t position of the internal structure of values would
.
United:
:
States
trade, it is
in.
.
international
be
serious matter when
an
important segment of world
opinion has begun to question the
fiscal and monetary
undermined; and the vitality
of
on
a
integrity
ex¬
emplified by bur American dollar.
It is not something we can lightly
in hope it will go away.
The battle against inflation is at
a crucial point,; and a setback in
pass over
the United States would be
setback
ous
here
will be
so.
seri¬
free
I would like to be able to
world.
state
a
entire
the
for
and
say flatly, "There
inflation.", I cannot do
no
For any one man, that would
only be idle talk.
is
now
talk
not
What
need
we
debate
long
nor
lengthy analysis, but resolute
actions — continuing over time—
nor
which will demonstrate
ers
the
good
of the American
A
and
sense
to doubt¬
character
people.
approach 1959.
The fear of inflation is earnest,
and it is having a damaging im¬
pact already.
Today, when the
level of savings in our country
has been steadily rising, we could,
in my opinion, be selling longus
as
we
term Government bonds
est rates
current
at inter¬
substantially lower than
levels
if
the
holders
of
these savings were convinced that
there will be no inflation—con¬
vinced
that
affairs
on
inflation
I
of
not
so
our
remarks
be
They
may
pessimistically.
a
good
this
particular
impeachable.
We have al¬
start
on
the
affairs
point
is
un¬
.
as
the stability and orderliness of
sterling in relation to the dollar
are preserved for undermined. It
is perhaps well to be reminded of
the experience which commenced
in
1929,
the
and
threat
alarming
hI
which
of
Woodard^Elwood
Co.,
vitality
were
war
1929
lasted
and
until
with
the
stock
collapse, intense though it
manageable
until
in
of 1931, the British
was
forced to abandon gold pay¬
ments, and
against
the
be
sterling
dollar.
depreciated
Within
six
discovered
and finance
commerce
of
World
xWar
been
human
life
century
of
of the
brief
two
adopting
tionist policy.
sterling
and
banking
crisis
for
credit
and
question
which
we
ex¬
how
trade.
industries
our
permit
to
dollars
equity
could
'•
■*K
■
x
,
'
■
'.;/;77/.;
Irving Fine Opens
FOREST
Fine
is
engaging in
business
from
offices
a
securities
at
$/)£'' :'T
5
AND
MARKETS,,
Vv"
we
•i
debts
JBr——T^REENSBORO
;i
■
to
7
MEMPHIS^"T"
jf
Y
y\
J
jf
^NASHVIUE / ./"/"•
I
investments
abroad, but
rather
how
to
obtain
foreign
currencies in order that we might
discharge our debts to others and
that others might earn a return on
their
investment
equity
country.
We,
sterling
and
1933 when
need
the
for
in
our
example,
francs.
and
French
The
did
not
dollars.
When Our Postion Changed
But'. World
War
I
completely
reversed the position. We emerged
from this first great world conflict
since
the
Napoleonic
creditor nation.
great
our
wars
as
Moreover,
weight and strength and
which
a
vitality
BROADER MARKETS.
to make it one of the
were
most impressive economic systems
in
'
a
industrial system had gathered
modern
history. Accordingly,
developed,
throughout
the
period of the twenties, a surplus
of the trade account which, com¬
BETTER EXECUTIONS
we
bined with
our
position
great
creditor, made it imperative that
we
allow others to
order to
as a
dollars in
earn
service their debts to
us
and. to redress their adverse bal¬
of
ance
Established 1925
trade
stability
INVESTMENT
Members New York Stock
BANKERS
Exchange and Other National Exchanges
Underwriters and Distributors of Investment Securities
.
^
;
Jackson 1-0238
Wire
..
777..,*
Home Office: ATLANTA
preserve
private
markets/
wire
system
up-to-the-minute
quotes, and faster execution of orders.
Equitable
office
will put
you
in
Any
immediate
touch with the entire network.
markets.
At the very
own
time when, in our
interest, this became impera¬
AT 188 (Municipals)
lower tariffs established under the
,
extensive
broader
exchange
Teletypes AT 187 (Trading)
System Extends to New York and Principal Southern Cities
thus
foreign
tive for us to do, we followed
precisely the opposite course. We
reversed
the
tendency
toward
7 BROKERS OF BONDS, STOCKS, COMMODITIES
and LD 159
and
in
Equitable's
makes for
provisions
of
the
Underwood
Tariff Act. We enacted the
gency
tariff
legislation
Continued
cn
emer¬
of
ra"e
1921,
102
Securities Corporation
DALLAS
ATLANTA
•
•
HOUSTON
HARTFORD
•
•
322 Uni«n S+reet
oSiV.
iiic-
3,
TotUic-i^CO
BIRMINGHAM
•
GREENSBORO
•
NEW ORLEANS
PHILADELPHIA
•
•
MEMPHIS
JACKSON
Two W.->!f Sf-cot
New
*
HILLS, N. Y.—Irving
7
f*
SOUTHERN
EASTERN
problem was not
others to earn
their
*
.
a
Lexington Avenue, New York
many
indeed
as
—
'It;
WIRE SYSTEM
PRIVATE
-
Opens j
conducting
EQUITABLES
exclude
protect
service
British
to
is
180th Street.
LINKING
York
securities business from offices: at
to produce a return on our
or
us
We
could
We
to
Black
Black
with but
countries, the
stability
of
inter¬
of
needed
rose
William
securi¬
a
Service.
the
critical,
so
long
as
the
great
creditor, Britain, pursued a policy
our
New
Vr'Tfv'r
City.7
of Investor's Programming
Provided we owed
French
francs
to
perienced in the early months of
unemployment
name
I
own
demoralization
a
national exchange rates was never
free
Street,
Samuel
Abraham is conducting
and other European
did—because
the
BROOKLYN, N. Y.
investors from Britain and France
of
Broad
7 William
425
had
we
Since
Civil War,
doubled—the
shrunk;
nation.
25
intervals, we had been
a progressively protec¬
almost
laid
Broadway, New York City.
Forms Inv. Programming
this
almost
experience,
debtor
a
of
was
at 673
result
a
at
securities business from offices
far-
Before
throughout
rose
foundation
I.
as
:
disturbance, in what had ties business from offices at 189
the general tranquillity of
Montague Street under the firm
unemployment
the
the
a
violent
imports.
The volume of world trade
in
Harry Weinstein Opens
Harry Weinstein is engaging in
a
vis-a-vis the rest of the world in
milestone,
by over five
price of commodities went tum¬
bling
down,
the stock
market
plummeted downwardly a greater
percentage than had been its fall
during the entire preceding two
years. All values began to wither.
"
reaching changes that occurred in
the position of the United States
months of this historic
millions—it
Allard Co. in New York
AHard 3c Co., Inc. is engaging in
securities business from offices
City. ~
Why, you may well ask, did this
catastrophic financial debacle
occur? The answer to this question
to
•
ex¬
sound world currency.
a
Minneapolis
/
..
and
tenance of
close
was,
.
historical
the strength of our
industrial activity and the main¬
activities reduced to a manageable
figure the permanent and massive
body of our unemployed that was
one
of the unique phenomena of
the thirties. The depression which
September
..
this
to
.J
Detroit
<
«fc
14
-over
perience to punctuate the fre¬
v • Charles Vesce
Opens
quently demonstrated -— but un-.
happily- not widely understood y. Charles Vesce is conducting a
securities business from offices at
—relationship between our ■> own
46 Watts Street, New York City.
internal : economic
welfare, the
been
in
of
7
refer
wartime
started
figure
million.
is
The strength and vigor of our
internal economic system are af¬
fected favorably or unfavorably
and
of the fact that
intended.
made
ready
will conduct
aware
these
interpreted
are
we
basis which will make
improbable,
well
am
some
a
economic
would be subjected to enervating
influences. The historical evidence
market
pressing need for such action
confronts
internal
our
the
.
the value of
;
Arthur H. Rand, Jr.
Lynch,' Pierce,
,;*rr Tenner & Smith,
7
commercial
fied
Mils! Stop Inflation
Willnrare, Jr.
Merrill
'
national
thing in which people have basic
77-7
T. F.
7
Kidder, Peabody &
Co., Chicago j
fori:
^
69-10—
The Commercial and Financial Chronicle
102
if
and
Continued jrom page
101
avoid the
to
are
con¬
others to earn the dollars neces<>ary to™ thdrde bts^to m*.
™ migriat in
S
.
history
'fundamental
weakness in
the exchange position, which was
caused by the policies we pursued
and by the inflexibilities that had
continued at an accelerated
the
will
public pol¬
icy prevents others from earning
the dollars that, in our interest, it
is so essential that they earn. * v
It
would,
I
suggest,
create
internal difficulties, of great in¬
perhaps
ments to imports, our
supplemented it with the to become sharply silhouetted. But
Fordney-McComber
Tariff
Act ^e stubbornly clung to the same
which provided for the highest, policy.
The Smoot-Hawley Act
protective barricade American in- further
restricted imports and
dustry had ever had before in our further restricted the ability of
,
terminationoftheloansthat
,
are
go
prindpally in
Drivate account
Amerira^nd CeS'^mfr?n^thrmi/houfc the decade of the
large
The Bank of England The gold
reserve
of the sterling area
evaporated, and by September,
1931, Britain had no option butto
of capital by private inveatora in foreign countries, gold
flowed
almost
continuously
^continue chnrnlv Tffainst
throughout the 10-year period in
westerly direction to the United
The international m o n c t a r y
machinery lay in ruins, international trade withered and
shrunk as it had not shrunk since
export
It
only'through this
was
gold that
westward movement of
the
imbalance
could
accounts
was
this
international
in
account, after all the substractions
1929, the exportation of dollars
private account as well
public account came to an abiupt
'
.
fundamental
ma(je
are
account
on
of
foreign
probably the largest of any
country jn modern history. Others
|s
must, therefore, earn more
>
dollars
than
.
Our Stubborn Position
The
our
in
was
ever
necessary
the
twenties if orderliness in the exchange markets is to be preserved,
weakness. in
because
position then began
we
public account, export the dollars
that we will not allow others to
of calling the pro¬
gram which, heretofore, since the
close of the war has been called
called
be
to
Device
a
in
should,
it
Aid,
Foreign
receive
should
fact,
Preserve
International
in
Ex¬
There
there
were
amity.
is
riot
and
these
touch
international threat whatsoever
our
United
for
the
Kingdom.
It is in some
too,
the
product
of
normal, natural, tem¬
deviations from the long-
American
than
the,volumc
exports has fallen
the
has
volume
of
Member Federal Deposit Insurance
large
very
a
ominous
and
If this deficit continues and is not
either by an improbably
large and permanent volume of
imports, or by a corresponding
export of dollars, we can expect
a period of exchange disequilib¬
Corporation
rium and
confusion at some time
in the future. This deterioration of
currencies, and particularly
of sterling against the dollar, is
apt to produce here at home a
serious economic convulsion not
unlike the one that was produced
in the
early thirties when the
other
OUR
DISTRIBUTORS
—
DEALERS
TWENTY-EIGHTH YEAR
Within
dominion.
their
On
delib¬
I have
But
weight of
economic
the
situations
economic
vitally
internal
our
welfare.
"L
I
have
the
divided
so
Participating in the offering are:
Salomon Bros. & Hutzler; Harris
Trust and Savings Bank; Ladenburg, Thalmanri & Co.; Francis I.
duPont & Co.; Roosevelt & Cross
Incorporated; W. E. Hutton & Co.;
Schoellkopf, Hutton & Pomeroy,
Inc.; Coffin & Burr Incorporated;
Bacon, Stevenson & Co.; J. R.
Williston
dealt
have
whole,s
adequately
so
with other aspects of the problem.
I
have done
so,
William F. CBryon
able
efforts
strike at one of the very items
the
might, in a
environment,
which
budget
certain
ner
economic
same
of
sort
deterioration
Francis
O'Bryon, part¬
in Wm. C. Roney & Co., passed
away
also, because ad¬
and
legis¬
their highly commend¬
to save dollars, may
in
lators, in
William
officers
ministrative
Beane.
Stern, Lauer & Co.; John Small
& Co., Inc.; Granbery, Marache &
Co.; Courts & Co.; Herbert J.
Sims & Co., Inc.; M. B. Vick &
Co.; Tilney & Co.; Talmage & Co.
problem and have dealt with the
economic considerations, because
others
&
-
Dec. 5.
Randall M. Keator, Sr.
Randall
M.
Keator, Sr., pro¬
prietor of Randall M. Keator; &
Company, Rumson, N. J., passed
away Dec. 5th at the age of 70.
this
country the greatest
pain and suffering, and which
might upset our position in the
world, diminish our prestige, and
cause
even
cause
ing of
our
lamentable weaken¬
a
North Atlantic Treaty
Philip Platzer Opens
JAMAICA,
zer
if
it
indeed
might
not
is
N.
Y.—Philip
engaging
business
frightful
made up,,
The Bank Wire
—
national
•
Alliance,
deficit in the balance of payments.
Bell Teletype JK 182
to
world
of the
major
the
brute fact still remains that there
Organized 190 3
UNDERWRITERS
the
imports. But even after
making, all the adjustments, the
foreign
is:
—
established
I recognize also that
JACKSONVILLE, FLORIDA
System
the
which
price of basic raw
term trend.
JACKSONVILLE
Wire
in¬
favor-
perfectly
more
Telephone ELgin 6-5611
in
more
trade
of
has
the
measure,
porary
OF
and
terms
materials
difference
the
rates
decline in the
NATIONAL BANK
com¬
the American dollars
scores
necessary.
that
of
the
primitive and
them
communist
there
were
from
in
Plat¬
securities
a
offices
92-03
at
173rd Street.
•:
shatter it to bits. This would be a
catastrophe,
for
the
North Atlantic Treaty Alliance is
the heart, the bone and the sinew
of our national security and the
policy
foreign
of
of
most
our
are
a
number
such, for example,
factors
of
the progress
of
others
toward
making their
currencies convertible, the extent
to
which
we,
as
and the effectiveness of measures
here
restrain
elsewhere
and
and
Co. has opened a
branch office
ing
under
management
the
check
the
to
powerful
inflationary forces that have been
Prize Investors
■Hi)
BROOKLYN,
vestors
N. Y.—Prize In¬
Corporation
has
been
formed with offices at 2026 Ocean
Avenue
to
engage
in
a
securities
business.
oc¬
Foreign Aid Criticism
&
Distributors
Underwriters
Dealers
Notwithstanding.
It would; be
there
that
Corporate Securities
firmities
the
deceptive to deny
have
been
some
in¬
CORPORATE ARC MUNICIPAL
in the administration of
Foreign Aid Program,
or
to
SECURITIES
deny that frequently it has; failed
Offices
to. make
Barneft National Bank
617 Madison Street
Building
Telephones: ELgin 3-8621 t L. D. 47
Telephone: 2-4628
Teletypes JK 181
But;
even
the
validity of these criticisms — if
they are valid—of foreign aid does
not destroy the case, or. lessen
the need for the exportation of
dollars" necessary to preserve a
TAMPA
JACKSONVILLE
friends.
Teletype: TP 8040
stability of exchange rates. Our
national interests require it.
Southern Textile Securities
andr Properties
Established J892
A. M. LAW &
Member
Private Wire
Botwoen Offices
I'll
It i
I
.
I
An
\ It It I S II \
alternative solution
to
the
problem would be to- become free
trade and to eliminate foreign aid;
U
M
It (If \
:
This* course is philosophically
logical, and it is logically philos¬
COMPANY, INC.
Midioelst
own
Stock Exchange
t
SPARTANBURG, S. C.
Telephone 3-8446"
Direct Wires to New
Hayden, Stone & Co.
of
Irving B. Harris.
in fact, reduce our
impediment to the flow of inter¬
national
trade
and
investment,
taken
CHICAGO, 111.—Robert J. Levy
&
in the First National Bank Build¬
Western Allies.
There
Robert J. Levy Branch
curred for much the same reasons.
Southern Municipal
an
stead,
N.
Y., Various Purpose
Bonds, due March 1, 1959 to 1988,
incl. The group bid 100.257999
^or
It
attempting
parts
imbed
to
own
are
is
more
undeveloped
to
us
v.
,
case
still be with
of those times,
one
issue of $8,755,000 Town of Hemp¬
other
might.
military
debatable that
confine
terest
ATLANTIC
'
.
course,
some
problem of exchange stability
product of
Department
This is
the bonds as 3^s, for a net inter¬
portation of dollars.' We do live est cost of
3.46% to the. Town of
in a perilous world. We are under
Hempstead.
\
>;
the potential threat of external'
Public reoffering of the bonds
attack
with
the
most
frightful
lethal weapon. We do, therefore, is being made at prices to yield
from 1.80% to 3.75%, according, to
need Allies that are strong in an
.
,
.
r
economic
sense
and
that
can maturity.
divided the world into two parts.
.able
Bond
contemporary systems of thought."
erately divided the problem up
that: into segments and have tried to
chasms
no
meet the future with
*
problem would still be with
if
us
the
the
ourselves
complete
in
living
were
if
us
and
and
world
communist
This
with
be
_of the environment in- which
sufficient elasticity of mind, espe¬
cially if we are locked in the
aspects of the problem of the ex¬
the
security.
recognize that there has been
an
(Outflow
of gold during the
course of the last 12 months, but
this has been in large measure a
of Federal Agencies
of
are,
capture
and ^ourselves
and
we can never
Need Strong Allies
Also, We
world
Soviet'
plead
of
munist
problem
markets would
than to
more
he lives. For, as a great'historian
has put it, "There are times when
subsidy
_
of
preserving
stability in the foreign exchange
This
no
creditor;
a
contemplate.
of dollars.
.
do
re-examination by everyone
his own conception of reality
is ."the cost. of protec¬
tionism. The alternative—a shake* 7"
muster
I
Bonds
double
a
can
a
nation,
change Rates—for this is now the
basic purpose of the exportation
to
Municipal Bonds
and
other restrictions on imports, they
in
confidence
for
make. Instead
no
U. S. Government Securities
of
sub-,
sidized through tariff quotas
exchange rates, then we must, on
would
State and
It
ecdnomy are;' being
private
This
the exchange
home.
at
out
in
exchange
rates
which
The
Chase
Manhattan
Bank,
Ttttridf ~dnriag_a ^period of defla¬ Bankers Trust
Company and C. J.
tion, rock us on~otir economic-^Devirre~&M2e5are-joint, managers
to foundation—is a far more alarms
of
an
underwriting
syndicate"
to ing and distressing picture to which won award
Dec. 16
won't permit' Others
services for us, and
import enough to collect dollars
from us and thereby to lay a solid
\ If
perform
century, Stability
position — not necessarjjy for today but for long-term
_ig eyen graver than it was in the
twenties, and our surplus on trade
Now
on
"
was
unexperienced
the course of more than a
i
1
Depression
with an intensity heretothroughout
Up0n us
fore
gold which was to make sterling
so. vulnerable when at last the iilusion of the 1920vanished and
the stark naked fragility of the
situation became apparent. When
t5e,S^ckJTiarket
of
The
Why We Must Export Dollars!
foundation
-
.
Waterloo.
It
of
redressed.
westward
current
be
aga n
dollar.
a
States.
shaiply
±el1
linS
the
I
for
here
the.; earning. But this; for
be achieved
kets, can there
orderliness and
from •
draw its short-term balances
is
cynical to argue that,
large segments of our
dislocations
tensity were1 we to reduce too by insinuating dollars on public
suddenly our protectionist policy." account, and therefore from, the
How then, if we will not; in the taxpayers, into^the channels "'of
immediate future, allow others to foreign trade which the* tariff and
earn dollars in order to maintain
other restrictions on imports and
orderliness in the exchange mar¬ services
prevent
others
from
stability which
^^^te-^int^Lecon- h^teen made to Ce^alEurope
important to the lives* of
m^v^sconcTaled bTthe^ar^e CredirAnStatt-fiUddenlXJtO, wilb", countrymen*'v".our
SffStaveffbTus
1058
ophical. But to expect that this pressing prices upward. All these
happen #ithin any reasonably and several others might form a
limited period of time is, to quote realistic basis for determining the
Adam Smith,
to expect Utopia; amount of dollars that the Con¬
Moreover, if it were done too gress should authorize to achieve
suddenly it would cause serious exchange equilibrium.
of a deterioration in the
value of sterling against the dol¬
lar. And yet the paradox of the
situation
is
that, despite what
moderate downward adjustments
have been made in our impedi¬
and
The
we
sequences
"Shall We Repeal the
Mistake of the 1920s?"
on
A Thursday, December 18,
.
(2618)
Bell Teletype ZP 67
York-City-
Troster, Singer & Co.
J
I
188
Volume
Number 5804
.
.
The Commercial and Financial Chronicle
.
(26X9)
deterring effect upon savings of
constantly rising levels of tax
Continued from page 9
rates based
to
meet
on
the
As
approxi¬
rises
market considerations and not on
;
the basis of tax considerations. To
mately $150 million.
*
the
v
•
More Revenue Without General ■
Rate Increase
*
r
extent
should
We have. here; the elements of
our problem ^prospective govern¬
vidual
ment
expenditures conservatively
estimated^ at $80 billiohjand: pro¬
spective government revenues most
time of full employ¬
a
it
VALLEY
to
do
certain
a
thing that
would riot do in the. absence of
considerations.
This
would
aimed at
measures
tax
ment, Itis. not unlikely that
the
"expenditure decisions will be io->
,fluenced
groups
that
are
by
course,
tax
upon
and
ability to keep
our
reasonable
some
balance
expenditure
base
broadening the policy
-rather
than
as
in
the
situation.,
crutch for inadequate
a
.through
fiscal
policy.
general rate increases. I seriously
question the advisability of in¬
sition
that
The
of
sort
oppo¬
developed, to- higlu
and^redit restraints in
interest
,
doubt from our
•
tax decisions that would be made
this
situation
would
growth.
cent
in¬
be
TEXAS
clearly to the
interest of the savings bank com¬
munity that credit should be as
Hunter
.greatly interested in tho benefits creasing present rates of taxation the last few years could result
of
particular^ programs and a¥6 ; on the present tax base because in a general public unwillingness
hot
primarily
concerned
with of the concern which I have for to use credit policy at times when
effect
of
such
action
their
tax
on
consequences.
On the the
it may really be necessary.
other hand, .it is likely that any opportunities for future economic
There is no
in
SOUTHWESTERN
is
Suggest that the" first line for One lesson of the past few
years
raising increased revenue, if that has certainly been that there are
is necessary, should be. through
great, drawbacks to using credit
^liberally estimated at $78 billion,
"and this in
policy,
possible, I think we free as possible. The extent to
trying to make it which we can avoid particular
taxwise for an indir credit restraints depends, of
tax
hie
MISSISSIPPI
mone¬
avoid
preferable
.
;;
IBA GROUP CHAIRMEN
expenditures.
think in terms of
we
tary
source
tax base
narrow
Monetary Policy
Factois in Economic Growth
this
a
levels of over-rising
government
from
m
experience
terest
that
Breckenrfefee
Joseph M. Luby
McCourtneyBreckenrldge & Co.,
St.
Commerce
Kansas
Trust
John P, Henderson
Co.
City, Mo
M.
,
Louis
B. Allison * Co.,
Inc., San Antonio
re¬
high in¬
a
rate
policy
bites
much inflationary if we will not make
Banks
Form L and L Plan :
harder at particular parts of the
consistent
tax
decisions.
The
savings, banks
economy than it does at others.
JAMAICA, N, Y.^Tfce I. and I.
problem of getting consistency re¬
klong with other types of activi¬ It is small businesses with
inade¬
quires sincere efforts on both the Plan, Inc. has been formed with
ties which enjoy some degree of
quate credit lines that are first tax and
offices at 89-30: 161st Street to
expenditure side.
preference under existing tax law
to
lose
their ability to borrow
On the expenditure side, con¬ engage in a securities business.
programs
that
they
did
not must awaken to the possibilities,
necessary working
capital.
The
so
long as these high spending
approve.
sistency requires that government
prospect of using high interest
As I see the problem, it is this, programs
Inter-County Planning
continue,* ofj the - tax rates over a
programs -be evaluated in terms
period of several
base being broadened in such a
of what must be given up by the
flow can we get the Congress and
VALLEY STREAM, N. Y.r^In,
years to make up for large con¬
the public to make the decision as way as to alter their present tax
increased taxes necessary to pay
ter-County* Planning Corp. has
sistent deficits is to tne an ap¬
"to whether or not they want, an status. I do not desire to alarm you,
for them.
The
increased taxes been formed with offices at 448
palling one.
This
places even
will obviously cut down private West Sunrise
bxpenditure program adding up to into believing there is presently more
Highway to engage
emphasis on the importance
say
$83 billion in the the light being considered for the agenda of of the
expenditure and thus cut down in a securities business.
problem of obtaining con¬
of
the tax program
that those the Ways and Means Committee sistent
growth in the private part of the
expenditure and tax deci¬
expenditures
would
involve
in for the 1st Session of the new
economy.
Government programs
M. & J. Kaplan
sions, on the basis of the'lowest
order to obtain a balance in fiscal Congress any program
should only be adopted if we can
affecting
possible expenditure and the fair¬
Murray S. Kaplqn and Jerome
the
taxation
of
mutual
affairs? T v
"'.'■■V.'.
assure
ourselves that they will
C:'
savings
est, most equitable, and most neu¬
LKaplan are engaging in a securi¬
banks.
make a sufficient contribution to
It is not clear that
fluenced
by
that
groups
Taxing
Mutual
Thus
dis¬
mutual
of the expenditure
programs in; the first place and
would therefore violently resist a
dollar tax increase to pay for the
approved
many
Savings
.
,
,
Open
such
«
program
'volve
a
„
tax
a
tral tax system.
I
'would necessarily ingeneral rate increase. A
would
however,
the
greqt deal of ^revenue could be
provided by a broadening of the
tax
base,
a
removal
of
some
to
special deductions and preferences,
that
and
an
increase in rates
on
some
less
be
than
honest,
If, however, we leave
groups
of taxpayers
money after taxes to
particular
with
more
acquire particular resources, and,
at the same time, spend borrowed
'government
these
resources
acquire
to
money
for
particular
'•
present levels of spending
by the government be maintained
in
future
some
sideration, may
session
con¬
be
given to the
taxation of mutual savings banks.
If I may advise you, and I shall
not charge for the advice, I would
suggest
that
your
organization
begin to think of. some possible
approach a future Congress might
service
great
in
future
years
in
1
'*
;
,1"i
In
should
specially favored income.
Even
here, however, carrying out such
a
prospective expenditure pro¬
gram without inflation would re¬
quire a
mobilization of public
opinion to carry through on a tax
program, of broadening the base. take, if the facts should require
It is easy to concede that there a broadening of the tax base so
are considerable social benefits in as to affect your industry, with¬
encouraging this or that particular out impairing the ability of your
industry
by some
present
tax organization to continue to render
favoritism.
4
if I did not alert you
possibilities
that
exist
the
face
do
;
i
••
the
it
see
sistent
next
as
tax
cisions.
We
several
loss of
1
conclusion, I would
over
I
the national welfare to
'
Conclusion
On the tax
say
years
that
we
problem of inflation.
problem of incon¬
a
and
are
expenditure
de¬
told by economists
that this country has the resources
to
increase
ment
these
considerably govern¬
expenditures and taxes if
are
should be
minds
far
was
deemed necessary. There
doubt in any of our
we
could maintain a
that
side, consistency
once
made in the
larger defense program if this
required by the international
Any of these expendi¬
ture programs,
these
re¬
decisions
ties business from offices at 1740
Broadway, New York City, under
the firm name of M. & J, Kaplan
Company.
light of their tax
Kenneth Kass Opens
consequences, public opinion must
support
the
enactment
of
tax
a
that will permit these
expenditures to be made without
program
inflation. To pay for growing ex¬
penditure programs by continued
deficits
mine
and
bility,
save,
as
or
more
growth
an
in
to
impede
real
eco¬
terms
increase in tax rates.
as
a
lemon Street.
*
Now First Pacific
for sta¬
of people
and such action will do
much
however, would be would
bulwark
Kenneth
securities
.*-*
business from offices at 139 Jora»
PORTLAND, Ore.
name
—
of First Pacific Investment
in
any
Congress would
great consideration on
suggestions which come from the
industry itself should it feel com¬
with
government programs, the result
will be inflation. /
pelled to make changes in the tax
;
Let us strive for economy in laws as. they affect you.
government expenditures, but let
It is unnecessary for me to con¬
;Us; not assume that an economy clude my remarks on Taxes and
wave such as existed in early 1957 Economic
Growth by a lengthy
"is ndw as evident. Such expendi¬
expression of reasons why you
'
ture
programs ; as
finally should be
are
adopted could lead to further in¬
flation
if
we
are
unwilling to
face
the
tax
consequences
re¬
quired for a balanced budget.
Another observation
on
situation i^ to repeat the principle
that I have mentioned frequently
before,
should
that
be
economic
made
on
the
decisions
basis
Sanders
of
be
so
Distributor
con¬
as
to
bring a greater
degree of balance to Federal fis¬
policy, for
than
tive
others
force
you
perhaps
realize
exerted
the
upon
Dealer
more
destruc¬
savings
through imbalance in government
fiscal
&
policy.
NATIONAL
You also realize the
Company
Members Aew York Stock
REPUBLIC
policy
structed
cal
the tax
Underwriter
concerned that tax and
expenditure
FIRST
Exchange
BANK
<S&UthU>€4t COMPANY
MERCANTILE BANK BUILDING
BLDO.
Dallas
DALLAS
Abilene
Houston
Lubbock
Plain view
i
Corporation, American Bank
Building, has been changed to
First Pacific Equities Corporation,
development of orderly sav¬
ings and thrift.
I feel certain
that the Ways and Means Com¬
mittee
v;
The firm
the
look
'
Equities
(Special to The Financial Chronicle)
the willingness
to
nomic
BROOKLYN, N. Y.
Kass is engaging in
inflation will under¬
main
our
no
that
situation.
quires
are
justify this
private growth.
San Antonio
Tyler
104
The Commercial and Financial Chronicle
(2620)
that call for and impose measures capacities and potentials as have
make people work less ef-; earlier generations who put us
Continued from page 11
that
accomplishment
more
or
in the
past
*
•
■*
■
■'
i
-
f
-
IV
.i
Where We Are
—
Risks;
it
pleasant to ignore:
risks.-"'
\ V
! £Vv'I have given what seems to me
the most likely course of events
And now let's consider what
would be more
the
in
•
all
of
three
the subjects
dis¬
cussed: The current business cycle,
economic trends, and,
pharmaceutical business. In
long-range
the
the
are
as
;
the
stated,
The most major and
significant risks seem to me to be
five in number, and while all are
serious, the fifth which I shall cialization or the division of labor. greater than all the above added
discuss is much the most serious
(3) The third risk is political together, exists because of a non¬
of all.
*.:
^
- strangulation of economic institu¬ existent Individual. That is the
named
George.
His
(J) The first is the interna¬ tions and it exists both here and individual
,
Under the most plausible
persuasive guises of need or
a
most
vigorous and powerful justice or defense, a whole host
groups demand re¬
group devoted with great deter¬ of pressure
mination to overwhelming, us.
I strictions upon the endeavors of
other groups to become more ef¬
mean of course the Communist in
both Russia and China. There are ficient, to grow, to provide more
some I know who feel that this
employment. These are the forces
risk is far away and usually exag¬ that would limit world trade and
gerated. My view is exactly the thus impoverish some countries
The United States abroad.
and
and the free world are faced with
This risk
opposite.
be exaggerated.
can
and
scarcely
drive
them
Communism.
If the free world
to
These
anarchy and
are
the forces
first
:
Let, and his last
Nearly all of us
come,to rely inordinately on
George when it comes to the
major problems of our country
and the world. Another way of
saying all this is that this society
has become unduly apathetic in
is
not
Underwriters, Distributors and Dealers In
Municipal and Corporate Securities
Experience in the Texas Market
was
through letting George do it
that
the
this
citizens
from
States
into
of
earliest
the
the
United
times
made
most
productive
country with the highest standard
of living and the greatest amount
of
Dittmar & Company, inc.
It
freedom
in
achieved
ever
the
world
in
all
any¬
time.
men
This
future
and
is
cattle
myth of George and the
growing assumption that this non¬
existent fellow George will take
care of the problems presented by
Communism, by inflation, by po¬
litical strangulation, and by specu¬
lation
is
the
greatest
danger
among us, is the greatest disease
With which we or any other so¬
ciety has been afflicted. This is
deadly dangerous.
If it persists
and spreads then all of the prom¬
can
and
Marys St.
for
industry, for our country, and
for the Free World: they should
our
be
is
V
GREAT
The future to
I stand on the
can
&
Baron, Black,
Lawrence, Incorporated,
253 North Canon Drive.
side of the
Toboco Adds to Staff
£
(Special to The financial Chronicle)
opportunities
tin
Save^oftOpens
GREAT NECK, N. Y.—Abraham
Savedoff is engaging in a securi¬
business
from
offices
Hickory Drive.
at
£ ^
Dallas Federal Savings Bldg.
M. Cohen has been added to
the., staff
of Toboco
Direct Wire to Carl M. Loeb, Rhoades &
Co,, New York
Co., Incv
(Special to The Financial Chronicle)
ATLANTA,
Summit Securities,
Cole
is
now
Ga.
—
with
E.
Dargatt
Clement: A.
Evans &
Company, Inc., 11 Pryor
Street, S. W.
Joins Selected Investments.
Utility Inv.
(Special to The Financial Chronicle)
Spino is engaging in a
securities business from offices at
WILMINGTON, N.
C—Marcus
L. Goldstein has become affiliated'
ance
Investments, Insur¬
Bldg.
With First Southern Corp.
Form Investors Discount
(Special to The Financial Chronicle)
cit¬
Investors Discount Corporation
ATLANTA, Ga. — Wayne W4
izens, going to become more dili¬ has been formed with offices at Thompson has joined the staff o£i
gent and resolute in doing some¬ 1752 Park
The
First
Southern
Corp., 6521
Ave., New York City,
thing ourselves about the prob¬ to
\
engage in a securities business. Peachtree Street, N. E.
are
we, everyone
lems that threaten
our
of
&
9235 Wilshire Blvd.
with Selected
Or
us
continued
progress?
We have
CIESTON H. FUNK, HOBBS & CO.
Trading Markets in:
ARKANSAS-LOUISIANA GAS
MEMBERS MIDWEST STOCK EXCHANGE
CENTRAL POWER & LIGHT
4%
Preferred
HOUSTON NATURAL GAS
Csrnmon
UNDERWRITERS
t
Preferred*
DEALERS
DISTRIBUTORS
We
have
We
our
have
and other Southwestern
AND
SAN ANTONIO
an
a
Mercantile Man
PM
about
unprecedented
supply of natural
have
a
equipment
great
and
We have
TEXAS
ca¬
people
a
sup¬
ply of knowledge which, however
imperfect, is greater than ever
possessed before in history. We
Municipal Bonds
Creston N.Funk.Hobbs & Co.
Investment
Securities.
Members Midwest Stock
frest Bank Bldg.
TWXSA-11
Exchange
Son Antonio; Tex.
CA 7-6215
We have in short
greater than ever
possessed before.
Have
we
gence and
tinue
to
a
....
the resolution to
take
advantage
of
con¬
our
.
-
■
cornucopia
people
any
the wit and the dili¬
:
k
from external physical threats for
at least a considerable period.
MUNICIPAL
RANK STOCKS
of
See
re¬
have remarkable power, sufficient
to protect us in
all probability
CORPORATE
ii
We
resources.
have
remarkable prog¬
and laboratories.
Securities
SECURITIES
which
conditions
sulted with
pacity
THE FRITO CO.
achievement
markable array of
and unequalled
LONE STAR BREWING CO.
remarkable
most
in all
the most re¬
skills that any
people has ever possessed.
We
have a highly developed set of in¬
stitutions which have proved their
serviceability and compatibility
history.
ress.
PEARL BREWING CO.
the
economic
made by any country
with
L0NGH0RN PORTLAND CEMENT
of
record
ever
INVESTMENT SECURITIES
,
HILLS, Calif—Mar* ,
With Clement Evans Co.
Summit Sees, in NYC
Albert
lean?
?
11
v
are we going?
1619 Broadway, New York City,
going to try to lean on under the firm name of Utility
George and since he isn't there Investments.
fall on our faces when we try to
DALLAS, TEXAS
^
Rubi^
BEVERLY HILLS, Calif—Rich¬
Kolb
BEVERLY
ties
—
ard K. Allen is with
be realized.
A.
Opens
NECK, N. Y.
.
(Special to The Financial Chronicle)
angel: I believe the challenges can
be met and that the
l
Joins Baron, Black
exciting
faith.
39
: :
Wooleys Lane.
me
and challenging and
has unlimited potentialities and
promises; its opportunities for ac¬
complishment are enormous—far
beyond the vision of those of little
Co.,
:
Garfinkel- is conducting a securi*
ties business from offices at £8;->
regions without walls—that is
without limits.
&
Rubin Garfinkel
the
hold
Rogers
Are we
s
201 N. St.
should
Kane,
South La Salle-Street.
Where then
Exchange (Assoc.)
ANTONIO, TEXAS
Aim,
postulated will be lost.
Conclusions*
Midwest Stock Exchange
SAN
what
of
.£;
i
CHICAGO, 111.—Ralph J. Wood,
Jr. has; been added to the staff of ;
Inc. is now
conducting its securities business
from offices at 130 William Street,
New York City.
ise for the future which I have
-
American Stock
run,
The
Member*:
Exchange
(Special to The Financial Chronicle);.
therein
view
my
Forms
hfew York Stock
him,
;
Aim, Kane, Rogers AddslJ
speak to this young man, say¬
ing, Jerusalem shall be inhabited
as
towns
without
walls for the multitudes of
Doit.
the face of serious risks.
unto
'tgv
I
engage in a. securities business,.^
£v£v
■
said
"And
is
name
name
thereof,
and what is the length thereof.
"And behold, the angel that
talked with me went forth,
and another angel went out to
meet him.
•
have
where
Over 30 Years
-
office at 113. Schoolhouse Lane
ywhat is the breadth
-
tional struggle.
Gerstley,TreasHrer of
Phila.-Balt. Exchange
.
from
past, and limitations
vestment, and it
impairs : and upon over-extension and over¬
finally wrecks monetary systems commitment, current psychology
which are the instruments through seems to me to provide the basis
which
this
society utilizes the for apprehension.
beneficent operation called spe¬
;■
(5) But the greatest of all risks,
risks that these will not
materialize.
they could,
they could
,
And while I judge providing the wherewithal for in¬
probabilities to be
there
than
<
said that the
most likely prospect seems to me
for further improvement.
i i '
But as is ahvays itritely said,
few facts about the future on this
earth are certain. There are only
all three cases I have
probabilities.
less
work
Bright Business Outlook
the hope is justified that the next
decades can be marked with" as
as
Thursday, December 18,1958
>
and where we are today? Have we
the diligence and resolution that
and
would. These are the forces that they had?.
'
PHILADELPHIA, ^a;~WiUiam
I think we have—-but I am sure
encourage economic effort to be
Gerstley II, Senior Partner £ of
is to continue to exist and to ex¬ made to produce goods either not this dreadful fellow George does
Gerstley Sunstein & Co., members
pand, I believe that it must put wanted, by the market place or at not. I look forward to the future of thePhiladelphia— Baltimore,
with confidence-—and that confi¬
forth even greater and more skillr costs that limit their use.
New York and American Stock
ful efforts than it has done over
(4) The fourth risk is the de¬ dence would .be greater if I -saw
Exchanges;: was rappointed jTreas* "
the last dozen years.
velopment of a huge and ruinous all of us relying less on George. urer.
of> the. Philadelphia-Baltic
I believe we have an even greater
(2) The second risk is rising speculative spree. It has become
more Stock Exchange at
a recent;
future than the great past
we
costs and inflation. In an increas¬ a significant risk particularly in
meeting. ' of: the ' jpoar^of : Gov*v
have had-r-if we don't let Georges
ing number of lines of business the United States. The progress
ernors; He fills thewaicsmcKcreated •
the United States is pricing itself made in curtailing—I do not say take that future away from us.
by: the death of: -&JL K;rFfefflips,;
I do not want to be misunder¬
out of world markets. Also in eliminating—the extent of busi¬
who served ?. as ^Treasufer: since ;
much of the free world including ness fluctuation is engendering a stood. I Wish to bring a vision of 1951. ^.
:
the United States, the economy is confidence that, as it is said: "The great things that ought to come;
:
Mr. Gerstley has been ^member
I do not 'wish. to appear as the
making an effort to invest more business cycle has been mastered.*
of: the Board bt Governors
since
than we are willing to save, and When this is coupled with the de¬ young man of limited concept re¬
1954. He is a member Of
the:Bond,
to spend more than we are willing featist view: that inflation is in¬ counted in the Book Of Zachariah: Club
of Philadelphia and adirec-? £
"1 lifted up mine eyes again,
to produce. This has set upon us evitable and continuing, we have
tor of : the Blue Ridge Mutual
Fundi
and
the dreadful enemy of inflation. the makings
looked, and behold, a
of another of the
of New York;
:
man with a measuring line in .]
Inflation can destroy us—make no great speculative sprees that near-,
mistake about it. Inflation divides
his hand,
::
Irving Wharton Opens 'v
us into competing power gropps,
J
((Then said 1, whither goestROSLYN HEIGHTS, N. £Y;i ^
it discourages saving which is the are defenses against such a spree
thou? And he said unto me,
Irving. Wharton hag opened £an
essential for economic progress by in the form of greater knowledge
to measure Jerusalem, to see
than
ficiently
much
...
...
BANK
§mi9
J m
Volume 188
Number 5804
.
.
.
The Commercial and Financial Chronicle
(2621)
Continued from page 16
in proportion to their respective
holdings of common stock of the
bank, which would be one new
News Abont Banks and Baiikers
and
his
until
death," served
on
countless committees and devoted
:
In
time
campaigns.
in
much
,
directing
'
.
addition,
the
bank plans to
offer 80,000 additional shares, par
value $12.50, for subscription by
various
:
;
,
the shareholders at
the
basis
of
$50
share
per
for
each
six
According to an announcement
by. Ralph T.. Tyner, Jr., 3 Board
i
on
Chairman and Harold J. Marshall,
;
share for each
giving effect to the stock dividend.
President, National Bank of WestChester, White Plains, N, Y. John
J.; Stout, recently-appointed Man-
Warrants
for
such
subscription
rights would be issued.
The latest stock dividend and
one
shares of capital stock held, after
*
t
.
.
-
ager
Office,
additional
the
Bank's
Peekskill
promoted from Assist¬
of
t
i
ant Vice-President to Vice-Presi.
•
-
New
Rochelle
in National Bank of Westchester.
Edward H.
■
Townsend, Methods
Supervisor in the Bank's Operations Department, located in the
Main office in White Plains, was
promoted from Assistant Cashier
to
Vice-President.
Assistant
veteran
banker
of
more
A
than
30
years
experience,
career
at Chase National Bank of
he
his
began
New York in 1927. Mr. Townsend
;
v'.Cri.'
..
MEW YORK
>
;,C"
■>-.
NEW ENGLAND
cauabiah
New Jersey announced
the election of C. Malcolm Davis
a
Senior
Vice-President
and
the appointment effective Dec. 31
of John S.
the shareholders will be asked to
dent in
1955.
Cushmait McGee
W.
R.
Pressprich
Robert S« Weeks,
.
F.
<fe
S.
Moseley
Co., New York
and
York.
permitting Officer
the declaration and payment of a
stock dividend as of Jan. 30 of
with
was
in
has
been
Fidelity
named
an
1937.
asso¬
since
1928
Assistant Ti*ust
Elected
a
Trust
Officer in 1948, he was also named
a Vice-President in 1953.
Pitfield
'
&
Montreal
vestment
Officer; J. Richard Boy-
Mr.
Weatherby, in charge of in¬ Ian, to Trust Officer; Frederic E.
programming
in
the Mygatt, III, to Real Estate Officer;
Trust Department, has been with
Harry Werner and the appoint¬
The common capital
stock of
simultaneously 1952 to 1957 headed the American
The Warren National Bank, War¬
$300,000 from undi¬ Office.
vided profits to capital account
ren, Pa., was increased from $1,Mr.
Cartmell,
a
commercial
and
$150,000
from .undividend loaning officer and in charge of 250,000 to $1,500,000 by a stock
profits account to surplus account, the Credit Department, joined the dividend, effective Dec. 1. (Num¬
increasing
the
surplus
account Bank in 1946 and was elected an ber of shares outstanding—60,000
from $2,250,000 to $2,400,000.
Assistant Treasurer in 1951 and a shares, par value $25.)
tion for the purpose of
and
c,
Ltd.,
vestment
dation
ciated
Co.,
Vice-President ill Burleigh,
Charles W. Habgood„
previously been with Roger S. Hillas, W. Patton Kinsey;
Bankers Trust Company of New Charles R.
Polk, Jr., to Trust In-,
year, and to pass upon resolutions
to amend the Articles of Associa¬
W.
He had
elect 22 directors for the ensuing
Bacheller
Eric S, Morse
Jr.
Co.,
Second
a
1957.
Company from 1931 to 1951, which
later merged with National Bank
of Westchester. Appointed Administrative Assistant at NBW in 1954,
he was named
to
his
present
assignment two years later and
was subsequently elected Assist¬
Mr.
&
Boston
with the New Rochelle Trust
was
i
'-'v.-
^
.
Trust
Company,
New York before its consolidation
*
-
•
-
>•-»*r *
Bacheller, a Vice-Presi¬
increase from $15,000,000 to $18,- dent and Trust Officer, to head
the Bank's Trust Department, and
000,000.
\
Both the stock dividend and the of George Zabriskie, Jr., now a
new
stock subscription are sub¬ Vice-President, to head the Comp¬
v
ject to approval of the Comp¬ troller's Department.
Also announced by Mr. Duke
troller of the Currency and the
bank's shareholders, who will vote was the election of Clement Camat the annual meeting on Jan. 13. bon, Jr., Peter Cartmell, William
F. Greenley, Jr., and Raymond B.
«
tfi
:H
Weatherby
as
Vice-Presidents.
The
annual
meeting
of
the
Mr. Davis, in charge of Fidelity's
shareholders of The First National
commercial
loans, was a ViceBank of Toms River, N. J., will be
President at the First National
held at the banking house of the
City Bank of New York before
corporation Jan. 13, at which time
joining Fidelity as a Vice-Presi¬
Office,-Mr. Stout ;was
manager .of. NBW's. Eastchester
branch and was formerly With the
BAGROUP CHAIRMENf
on
;
as
shares from 456,000 and
stock from $5,700,000 to
$7,000,000. Surplus account would
Peekskill
held
subscription would in¬ Newark,
560,000
capital
dent. Prior to taking charge of the
shares
Roy F. Duke, President of the.
: Fidelity
Union Trust Company of
..
the bank's capitalization to
crease
was
34
July 15, 1959. The sale of the
6,000 shares at $30 a share, $30,000 would be applied to the capi¬
tal account and $150,000 would be
applied to the surplus account,
further increasing the capital ac¬
count from $1,020,000 to $1,050,000
and the surplus account from
$2,400,000 to $2,550,000.
share for each 19 held.
new
105
the Bank since
1942
and became
Assistant Trust Officer in 1948
and a Second Vice-President in
an
1951.
ment
Frederick
of
as
o
s
$
j
*
*
DeHaven
As the
Butler
Y.
Assistant Treasurer.
new
head of the Bank's
Trust
The
Develin, President of
Bryn Mawr Trust Company,
Department, Mr. Bacheller Bryn Mawr, Pa., announced that
Leslie
G.
McDouall, Robert J.
Farr, Comptroller, was
A&istaht Comptroller of the Bank Senior
ant Cashier.
Vice-President, who, after elected Vice-President and Comp¬
outstanding, and to authorize an£
£
<5:
iii 1942, a Second Vice-President nearly 50 years of service, will
increase in the capital stock bytroller and
James H., Halward,
He
will
The
First
continue
National
Bank
as
a
of the sale of additional shares to in 1950 and has been a Vice-Pres¬ retire.
formerly Assistant Trust Officer
Director and Trust Consultant. Mi*.
Easton, North Easton, Mass., with Shareholders of record July 15, ident since 1955.
was promoted to Trust Investment
common
stock
of
Mr. Cambon, head of Fidelity's Zabriskie, in his new responsi¬
$150,000; and 1959.
Officer.
The Machinists National Bank of
With the approval of the share¬ Personnel Department since 1957, bility, succeeds LeRoy F. Murphy,
Mr. Halward has been associated
Taunton,
Taunton,
Mass.,
with holders, it is planned to increase has been with the Bank since Vice-President and Comptroller,
with The Bryn Mawr Trust Com¬
common
stock
of $200,000
He
became
an
Assistant who is also retiring after over
have the common capital stock of the 1922.
pany since October, 1955.
Prior
merged, effective as of the close bank outstanding from $990,000 Treasurer in 1931 and a Second 40 years of service.
to joining The Bryn Mawr Trust,
®
0
of business Nov. 28. The consoli¬ to
$1,020,000 by payment of a Vice-President in 1943, and from
effected
was
charter
The
of
under
First
l/>33rd
share
the
transfer
Bank of Taunton.
:2s
#
&
of
the
Trust
N.
J.,
was
Lawrence
Carey.
He will succeed
Charles E. Clifton.
if
The
tf
National
asked
B.
authorize
to
Newark, New Jersey, announced
that it will pay a stock dividend
Of 24,000 shares at the rate of
the
to
also being
further in¬
a
capital
stock
&
per
Zabriskie
was
elected
an
succeeds
Second
f
Vice-President
in
«
1955.
Provident Tradesmens Bank and
special research and planning in
the Banking Department, joined
Fidelity in 1955 and was elected
Trust Company, Philadelphia, Pa.,
an
Assistant
Treasurer
that year
announces
the
following
promo¬
tions: To Assistant
Albert
J.
associated
was
the
with
in¬
vestment department of the First
Pennsylvania
Banking
Trust
&
Co.
ft
si«
'!»
The First National Bank in East
Chicago, East Chicago, Ind., with
stock
common
$
Mr. Greenley, who is engaged in
The
Union
diana
Harbor
Ind., with
000 have
Vice-President,
Bauhaus, William C.
of
$200,000;
National
at
common
Bank
East
and
of In¬
Chicago,
stock of $200,-
consolidated, effective
Continued
on
page
as
106
share
fi-
Exchange (Associate)
A GROWTH STORY
Diversified
square
Municipal Bonds
Bank and Insurance
$
has
Midwest Stock Exchange
, ,
American Stock
Mr.
Co., Inc.
Member
Exchange
from
$1,050,000,
-
New York Stock
each
stock,
are
6,000 new shares at $30
one
Rauscher, Pierce
J
for
capital
which
amount will be divided into 210,000 shares of the par value of $5
each, and the shareholders of rec¬
ord as of July 15, 1959 would be
accorded
the right to purchase
of
Bank
in
crease
late
$
State
share
of
$1,020,000
the
a
The shareholders
Company of New Jersey, Jersey
City,.
of
common
stock dividend and
National
Bank of Easton and under the title
The
First-Machinists
National
Elected President
part
of
Company Stocks
miles
—
we
that's the word that best describes the 45,000
serve
electrically.
With one-sixth of the nation's irrigated farmland,
one-eighth
Mutual Investment Funds
of the known oil reserves,
Public
Utility, Railroad and Industrial
95% of the nation's potash production,
—
Preferred Stocks
Underwriters
Brokers
•
—
•
Common Stocks
Dealers
50% of the carbon black output, there's
that
Bonds
and
keeps growth going
—
an
economic balance
up.
Distributors
:■
'
Mercantile Dallas
Building
SOUTHWESTERN
Dallas 1, Texas
Austin
•
Fort Worth
•
Harlingen
•
Houston
•
Lubbock
*
Midland
o
Odessa
•
San
Antonio
•
Tyler
•
Fayetteville, Arkansas
PUBLIC SERVICE
COMPANY
i
306
The Commercial and Financial Chronicle
(2622)
...
Thursday, December 18,1958
from
page
McAvoy and Thomas D, Nichols
elected Vice-Presidents of
105
advanced to Assistant Cashier and
The
ratio
J.
five
shares
the bank.
Confirmed
Comptroller.
were
News About Banks and Bankers
was
effected visions of the banking depart¬
All three were formerly
charter of The First ment.
Bank of East Chicago Assistant Vice-Presidents.
National
«
*
increased its common capital stock
from
$1,000,000 to $1,300,000, ef¬
fective Dec. 2f (Number of shares
outstanding — 65,000 shares, par
value $20.)
<-
-■•>-/•.
#
&
«y.
&
•
The Board of Directors of Harris
•
'
v
.
to
$20,000,000 and the declaration officer of the
a
dividend,
Zwiener, President,
y
If this recommendation is
proved* by
ap¬
the stockholders
at
their annual meeting to be held
on Jan,
14, the capital increase
29.
Dec.
will
be
company
The
held.
The issue will
increase
L.
y
King,
Bank;
President 7 of a for each five shares held,
.
Los
•
issued 'to Shareholders at $38 a
share" -in1 the ratio oof 6he ' share
Since
that time the bank's assets have
Angeles,
Calif., has announced the election increased from $1,244,000^)00 -to
H. T. Lundahl/ Leighton tBCi $l;7Q4,f)00,000.
Subscription *; war¬
Tuck, andTonyL. ^Westra..-tp rants for the new shares will be
positions as Vice-Presidents pf the issued ^on Dec. 17 and the right 'to
bank.
'■ •.
" ,y:7 .* / / yiy./^• subscribe may be exercised iip^ to
Vice-President Lundahl Joined- March 13, 1950, when1 the, offer
California Bank in 1957 arid was: expires/ The -warrants may also
assigned to the staff of the bank's be sold' at - any time between /the
public relations section, City. Bi- , issue and the expiry? dates. WarW
Of
.
'
/•.'■V/-yy.
;
Vice-President
.
'
.
, rants will not be issued
^
for fracr
Tuck
-
effective
of Chairman
Mr, Good¬
rich will continue as President
and Chief Executive Officer. Mr.
Pettibone will remain a member
it was announced by Kenneth V.
is one share: for. evory
has been tions of shares as this is not per¬
Merger certificate was issued; ap¬
with the bank in the real estate-, mitted under the Bank Act; /proving and making effective, as
of the close of business Nov. 28/ loan department since 19427/He;, /The/ new shares- niay. be' paid
the merger of The Union National was named Assistant Secretary iof " for in 40-equal: monthly instal¬
the department in: 1953:^a«d rAs¬ ments i bf: $4: per; share/ commenc¬
Bank
of Lenoir, Lenoir,: N.
C.,
with cbmmon stock of $150,000; " sistant Vice-President»in 4055;7; 7 ing" March 13, or may be pur¬
Vice-President Westra began his chased outright after Dec. 3i. ' /
and Bank-of Lenoir, Lenoir, Ni C.,
with common stock of ; $200,000; ; career in banking/with theNorth/ Dividends .{.will /be .payable
on
west ^Security.: National. Bank,/ the new shares in /proportion /to
into First Union National Bank of
North Carolina, Charlotte, vN..-C„ Sioux Falls, S. D. Mri/Westra l>e-t the; paid-up amount of the pur¬
with "common stock of $2,165,000. came; • associated withy California ? chase price,
/
: //
HI., took action at its meeting on
Dec.
10 to recommend to the of Chicago Title and Trust Com¬
bank's stockholders an increase in pany, Chicago, 111., announce the
the bank's capital from $15,000,000 retirement of Mr. Pettibone as an
of
Frank
*• vision.
V.
if
Chairman,
and Paul W. Goodrich, President
Holman D. Pettibone,
Assistant
^
ant Cashiers.
/. • California
'
:
Trust and Savings Bank, Chicago,
one-for-three stock
.•
in 1947 and.Assist¬
Arthur F. Boettcher, Vice-Presi?
ant Vice-President in 1953.
Mr.
dent and Director has been elected,
Duncan joined the Harris in 1936V
He became an Assistant Cashier in Senior Vice-President, i-ond' David
H.
Morey,
VicerPre^ident; and
1947 and Assistant Vice-President
in 1949.
Mr. Stanley joined the Trust Officer, was' elected Senior
Vice-President and; a Director of
bank in 1940, was made an As¬
National ; Bank, •" 'St...
sistant Cashier in 1949 ,and Assist¬ Boatmen's
Louis, Mo. Appointed Vice-Presi¬
ant Vice-President in 1952,
dent was Ethan A. H, Shepley, Jr4
tf
if
tf
ant Secretary
*
By a stock dividend, The First
National Bank of Springfield, III.,
•
increased
was
2,000 shares, par value
,
y7
standing
$100.)
Mr/Corwine joined Harris Bank
in 1929. He was appointed Assist^
Bank of East Chicago, Ind.
Iowa,
to
..
from $100,000 to $200,000, effective
Dec. 2.
(Number of shares out¬
the
and under the title First National
City,
ster
consolidation
under
#
#
.
By a stock dividend the common
capital stock of The Farmers Na¬
tional Bank of Webster City, Web¬
Stanley, both serving in loan di¬
of the close of business Nov. 28.
The
e
■
.
Jackson
paid up capital from
The offical staff f of /the neW7 $18*000,000 to $21,600,000 and the
Sacramento
office,
which' will1 reserve account will be increased
open for business about Jan. 5, from $54,000,000 to $64,000,000. ;
will be John E. Miller, Manager,:
The 'last. issue
of the bank's
with Benjamin F. Greenough and
stock, hie pointed out* was in May,
Melvin H, Gott serving as Assist¬
1956,. when 300,000 shares/ were
'
■.
Rowell
post
discontinued.
of the Board of Directors.
The merger whs effected -unden the Bank in 1955 and was elected;*an \ /Shareholders domiciled- in ; the
Mr. Pettibone entered the em¬
charter and title of First Union Assistant Vice-President^jnyl956* - United States will receive / Sub¬
ploy of Chicago Title and Trust
National Bank pf North Carolina: He ; is, assigned ? to ,4he ^bank's;, scription ~ warrants
which r they
Company on July 5, 1911, became
Bellflower Office. "
:
'/A'
u may sell; but since .the new issue
&
%
#
'* ' yt;'s
profits to.the capital account on President on July y8, 1931 and
*
*
*
y.-'}, .•yy: is not registered under the U. ;S.
Jan. 19.
C. E. Thwaite, Jr., President
Tpis will bring the bank's Chairman on Dec. 1, 1953.
Directors
of Pacific
National Securities Act, the shares them¬
e
#
«
of Trust Company, Atlanta, Ga.,
combine^ capital and surplus ac¬
Bank
of
San Francisco, ^ Calif.> selves are not being offered - in
counts1^ $40,000,000.
Directors of Manufacturers Na¬ has announced that the Board of
<
have, approved ah increase in the the United States.
Stock certificates representing tional Bank of Detroit, Mich., Dec. Directors at its meeting on Dec. 9
bank's capitalization through, the
the capital increase would be is¬ 15
authorized
an
increase
in
the
approved the transfer of $5,issuance of 74,511 shades:-of new
bank's surplus account tc$ll,000,sued on Feb. 2 covering one addi¬
New Walston Branch in Fla.
000,000 from undivided profits to
capital stock. Subscription rights
tional share for each three shares the bank's surplus account, it was 000 by the transfer of $4,690,000
will be issued to present - stocks
CORAL GABLES, Fla. —Wal¬
from the undivided profits. This
held by stockholders of record announced
by William A. Mayholders on the basis of one.new ston & Co.,-Inc. has opened; a
raises the combined capital and
Jan. 19. Upon completion of this
berry, President.
branch office at 216 Andalusia
share for each three shares now
accounts to $15,090,000.
action, the bank will have one
As a result of this transfer, the surplus
Avenue
under the management
owned.
y
million shares of $20 par value new loan limit for a
The Hast published statement of
single bor¬
The proposed financing will..be of George U. Robson. Mr. Robson,
stock outstanding,
the bank on
Sept. 24/ showed
rower—10% of capital and surplus
submitted to the bank's stock¬ who has been in the investment
(in¬ holders at>
j
Mr. Zwiener also announced —is raised to $4 million. This is combined capital accounts
in
Florida/for
many
the annual meeting.on; business
cluding reserves for contingen¬
promotions at the Harris Trust and an increase of $500,000 from the
was
formerly a resident
Jan. 13.
If it is approved, rights" yearsj
former limit. Capital funds of the cies) of $19,731,538.
Savings Bank. Heading the list
will be mailed immediately thereL manager for Francis I. du Pont
*
"\ ff
if
,/•.., y y
wefe three new Vice-Presidents: bank now exceed $52,000,000.
Co. in Miami.
.7
after to stockholders,
y :'
J. Brooks Cor wine, in charge of
David J. Barry, Harold S. DeT|ie common capital stock of
®
*if
if
*
J
' 7
.! . ' ;
..
7 - J \
the trust new business division; Orlow,
Anthony L. DeTemple, Thty Barnett National Bank of
•Three hundred and sixty thou¬
Kent W. Duncan, and Carl S. Vernon C. Johnson, William B. Cocoa, Fla., was increased from
Form National Shares
;
sand shares of capital stock
of
I
$300,000 to $400,000 by a stock
National Shares Corporation. is
The Bank of Nova Scotia, Toronto,
dividend/ effective Dec. 4. (Num¬
Canada, were offered to share¬ engaging in a securities business
ber of shares outstanding—16,000
from offices at 14 Wall Street^,
holders on Dec. 12.
shares, par value $25.)
s f
F. William Nicks, President of New York City.
if
%
if
■.
11
the Bank of Nova Scotia, which ■'
Wiley R. Reynolds, Jr., Presi¬ ended its fiscal
year Oct. 31, 1958
D. Dean McCormick
dent and Chairman of the Board with a
26% increase in total assets,
of
the
First National Bank
in said that
CORPORATE
AND
MUNICIPAL
SECURITIES
the bank shares are
D. Dean McCormick, head of
Palm Beach, Fla., called a staff
being offered at $40 a share to McCormick & Co., Chicago, passed
meeting on Dec. 11 and announced shareholders of record Dec. 12.
away Dec. 4.
{
that at the regular monthly meet¬
ing of the Board of Directors two
employees were elected Assistant
UNDERWRITERS
•
DISTRIBUTORS
•
DEALERS
'
Cashiers: Mary Barrett, who has
will be brought about by transfer
of
$5,000,000 from undivided
■
.
■
.
M
:
v
.
.
>
.
.
_
.
.
...
..
'
,
.
,
"
-
'
i
'
.
JWriMey 4c
been with the bank
now
BANKERS
INVESTMENT
in the
over
six years;
Auditing Department,
and William Howell of the Com¬
mercial
Loan
Department, who
joined the staff in 1953.
«
Mofftberp Midwest Stock Exchange
•
NATIONAL
HOUSTON
2,
Telephone CApitol 6-8221
BANK
BLDG.
TEXAS
Teletype HO 42
Municipal Bonds
•
Corporate Securities
The Brooks Field National Bank
of San Antonio, San Antonio, Tex.,
TEXAS
TEXAS
$
$
received permission from the Of¬
fice
of the Comptroller of
the
Currency to
S.
F.
open
is
Ramsey
TELEPHONE
Members Midwest Stock Exchange
CApitol 2-9944
a new bank.
President and
TELETYPE
HO 395
Robert N. Oman is Cashier. The
bank has a capital of $200,000 and
a
surplus of $300,000.
sjs
-
1330 BANK
Algur H. Meadows
a
was
elected
OF THE SOUTHWEST SLOG.
HOUSTON 2, TEXAS
director of the Republic National
Bank of Dallas, Texas, it was an¬
nounced
by
Karl
Hoblitzelle,
Chairman of the Board.
®
EX AS
ley
MUNICIPALS
if
•?
By the sale of new stock, the
common capital stock of The Val¬
National
Ariz.,
was
Bank
increased from $7,645,-
CORPORATES
000 to $8,154,665, effective Dec. 3.
BANK & INSURANCE STOCKS
(Number of shares outstanding —
I,630,933 shares, par value $5.)
—
$
Elliott
the
Uddleman-Joli Co.
ddleman-JLollok
*
MUNICIPAL SECURITIES
*
McAllister, Chairman of
Board
of
The
Bank
Cali¬
of
fornia, N. A., San Francisco, Calif.*
announced
the following changes
in the offical staff.
/
711 HOUSTON STREET
NATIONAL BANK
,
Bonk of Ike Soatkwest BiUlif
At the San Francisco Head Of¬
HOUSTON 2, TEXAS
TabtnM HO
Dealers In
Phoenix,
of
fice, Robert L. Cox was appointed
Assistant Vice-President, Assistant
261
CApitol M427
Trust
and
Officers
William
Trust
E.
Fred, D.
Whisten
Bennett
became
Officers, Thomas B. Shaw
FORT WORTH, TEXAS
FORT
WORTH,
*■
•
.
TEXAS
r
|!
Volume
The Commercial and
Number 5804
188
Continued
from
page
•i
Financial Chronicle
has
13
exceeded production
have
:
'
Federal Reserve,
responsibility
to
*
to
come
and
in-
appears
liquidation
ventory
.J*
we were
early
the; control of the Federal Reserve. .forces.X However
Reserve
though
they
a
of
policies,
affect directly
;
part
our
financial
feeble
,
the
bility throughout 1959.
asung
°* f°recasting may be, the busi
may ire, uie uusi-
only
and
uessman
even
shown
,
decisions
system,
nevertheless, must make
based
his best judg-
on
inent of events to come.
been
fairly effective in re¬
straining the boom, cushioning the
recession and paving the way for
?
Since, at the close of 1958, the
recovery
which
began last April
Unlike the previous se¬
rious recessions, commercial bank
investments
have
not
been
al¬
continues, and there are no obviously massive hurdles in the way,
lowed
to
it
off; indeed, their
lqans and investments have in¬
creased steadily, and now stand
nearly $12 billion higher than a
year ago.
For this reason, cufrericy and total deposits have risen
and
stand
run
than
more
'
,
a
riod
j
year ago.
''j This policy of maintaining li¬
quidity (since the currency and
deposits are all owned by in¬
safe
to
assume
that
ahead, but, possibly at
v
C'RflA
V-t»l 1
i
r»v»
ivk n
*»lr
r\
4-
atr'fi
/*Ar»
$500 billion mark at today's prices.
The recovery has been substan¬
tial,
pre¬
vented financial strains and credit
combined effect of these two large
stringencies
the economy
business)
—
has
thereby
keeping, sectors is likely to be on the plus
effectively lubricated. - side,
"
'Although; the FED has many
its
performance during
critic's,
boom
from
recession
this jWill give added strength
to/recovery;, forces.
.
V. The.- construction industry is
SOUTHEASTERN
J
*
Wholesale
commodity prices have
serious
inflationary
no
William Z.
Harvey B. Gram, Jr.
Suplee
Johnston,
Suplee,
Yeatman,
Mosley Co., Inc.,
expanding factors have the
edge, but not by an overwhelming
margin.
Prosperity has to be
earned,
Edward J. Phillips
TwoWith
Philadelphia-Baltimore
Exchange Member
Ponitz and Charles Villa have be-
Philadelphia-Baltimore Stock Exchange announced that Edward
Phillips,
a
general
Dempsey-Tegeler
partner
ment
ties
LOS
ANGELES, Calif.—Milton
associated with DempseyTegeler & Co., 210 West Seventh
Street.
Villa
Mr.
was
formerly
LOS ANGELES, Calif.—Walter
joined the staff of
Fairman & Co., 210 West Seventh
Street, members of the Pacific
Coast Stock Exchange. He was
with Marache, Dofflemyre & Co. formerly with Bennett-Manning
and
J. Logan & Co.
in
Company.
of
Eastman Dillon Adds
Lester, Ryons Adds
i3pecial to The Financial Chronicle)
(Special to The Financial Chronicle)
LOS
ANGELES, Calif.—Robert
Cosgrove has been added to the
staff
of
Eastman
Dillon, Union
.
chestnut
T.
Street, .has
been elected
Securities
likely to. contribute, but only to,; membermoderately, to expansion above ship on the
1658 levels. The demand for loan Exchange.
iri the absence of this
carefully funds
(including heavy U,. S.
Mr. Phillips
tfiought-out policy-making, would Treasury deficit financing) will has been assohave been inevitable.: It is only tend to keep interest rates firm c | a t e d with
necessary
to
remind
ourselves .or/possibly rising a bit.,
the ' f i r m,
that a year ago a growing numSince the consumption of goods which1 was
and recovery has
Boulevard.
greatly helped
to avoid untold
potential human suffering, which
founded
&
3115 Wilshire
previously
Co.,
He
was
with Morgan & Co.
Edward
J.
Phillips
1, 1939.
in
Street, members of
Stock Exchanges.
TEXAS MUNICIPAL BONDS
During World
leave of absence
was on
serve
Army,
Hope
firm bids and offerings
1904, since 1927, and has been
general partner in the firm
War II he
South
the New York and Pacific Coast
'
by,
since Jan.
LON ANGELES, Calif.—Steven
W. Miller has been added to the
staff of Lester, Ryons & Co., 623
^
his late father
to
the
returning
United
to
the
States
firm
underwriters
in
•
distributors
dealers
•
1945.
Two With Schwabacher
(Special to The Financial Chronicle)
SAN
have
.
-HP'
FRANCISCO, Cal.—James
C.Riewerts and
Q)joMO4 /
become
&
Street,
gomery
Roger E. Towne
affiliated
Schwabacher
Co.,
100
members
with
MUNICIPAL i
COMPANY
Mont¬
of
investment bankers
the
New York and Pacific Coast Stock
Exchanges.
600
With
FIRST NATIONAL BANK BUILDING
Wilson, Johnson Co.
DALLAS 2, TEXAS
(Special to The Financial Chronicle)
SAN FRANCISCO, Calif .—Don¬
ald C. Poussette has become as¬
sociated
with
Wilson, Johnson &
300 Montgomery Street,
Higgins,
members
Stock
who
the
of
Exchange.
has
been
in
Pacific
Mr.
the
Coast
Poussette,
TRADING
investment
business for many years, was for¬
RETAIL
merly with Merrill Lynch, Pierce,
Fenner
&
Beane.
Blalack Adds
urherifc.
PRIVATE PLACEMENTS
to
Staff
SPECIAL SITUATIONS
(Special to The Financial Chronicle)
SAN
MARINO, Calif.—Thomas
Hirsch has* been added to the staff
of Blalack &
Co., 2486 Huntington
Private
Drive.
Wire to Strauss, Blosser &
McDowell, New York City
With Baikie & Alcantara
auge
;
W. Fisk has
K.
pjSllii^'& cS^
late
Birmingham
(Special to The Financial Chronicle)
come
securi¬
i
firm
Samue 1
a
Sterne, Agee & Leach,
invest¬
the
in
&
Joins Fairman Staff
(Special to The Financial Chronicle)
PHILADELPHIA, Pa. —The
J.
Lemon
Co., Washington, D. V.
Philadelphia
re-
a
but without much benefit
capital goods revival or the
automobile
industry.
Since the
dividuals and
recov-
The
ex¬
duced Tate. GNP should rise by
$25 billion from the current level
and reach* a new high of $470 to
$480 billion next year; and in 1960
we should, with ease, cross the
$12 billion
1_
above
seems
i.
EASTERN
PENNSYLVANIA
trend.
pansion will continue in the pe¬
recovery.
spot
CHAIRMEN
improv-,,,
re? than last year
have
IBA GROUP
probable; production will
•;been
federal
=
further stimulated.
be
107
to
end, production
now will haVe to be
stepped up,
eveh'if there is no rise in demand.
as seems
1
an
If incomes rise and demand
grows,
ber of economists concluded that
headed for a serious old-
assuming some
help
preserve
£ ■. ,•
(2623)
(Special to The Financial Chronicle)
SANTA
CRUZ, Calif.—James C.
Teletypes DL 558 (Municipal), DL 998 (Corporate)
Elgin has become affiliated with
Baikie
&
Telephone Riverside 8-5081
Alcantara, 1517 Pacific
Avenue.
Enterprise Telephone Numbers
With First California
New York
(Enterprise 6434)
Chicago (Enterprise 6234)
(Special to The Financial Chronicle)
OAKLAND, Calif.—Matthew F.
Jr. has become affiliated
with
First
California
Company
Incorporated, 436 Fourteenth St.
Kelly
Branch Offices:
Long View
Lubbock
San Antonio
The Commercial and Financial Chronicle
108
Thursday, December 18,1958
...
(2624)
14
like
leading Italian manufac¬
of tires, electric cables, and
a
turer
plastic products,
needs
several
other rubber and
Market
companies
outstanding
few
A
Continued from page
these
visualized
and
men
sales
rapidly
tune
It
as
in
executives.
Many
their English as
possible in order to
American experience.
brushing
are
on
up
apparent that design¬
stylists will have a much
seems
years ago
And American
Common Market countries as
162,-
And, in spite
than in this country.
of its political and financial diffi¬
French
production
is
$126,- culties,
000,000,000—or roughly one-third booming. Austria, the last Euro¬
pean country to be liberated, is
that of the U.S.
thriving and advancing its pro¬
In the same year, 1955, the com¬
duction at the rate of 6% a year.
bined population of the 17 coun¬
But Europe is fast approaching
tries
comprising
the
proposed
the limits of its employable citi¬
Free Trade Area was 285,000,000
with a gross product of approxi¬ zens, and its present plant and
machine capacity.
If the market
mately $350 billion, or about the
is going to expand at its present
:ame as that of the U.S.A.
In
1955
the
U.S.A.
exported rate, it can do so only by increas¬
goods and services, world-wide, to ing exports and by giving workers
the value of $15 billion, of which more leisure to consume the prod¬
000,000
Gross Na¬
in 1955, with
Products
tional
to
equal
ucts
they
produce
spending money in
i}4.5 billion, or 30%, went to the
Trade Area countries.
In
Free
$19.5
to
grown
billion,
*he; entire U.S. automobile indus¬
'
Obviously,
countries
tential
"
either
represents
market
for
a
group
huge
American
'
be
can
only by increased pro¬
ductivity through greater worker
greater than the domestic sales of
try."
ends
achieved
sum
a
These
checks.
this gross export figure had
?957
and more
their * pay¬
'
of
po¬
in¬
dustry and commerce.
How the Common Market Will
Affect Europe
Apart from some chronic unem¬
ployment in Southern Italy, which
is now being remedied,
Europe
efficiency, increased mechaniza¬
tion, and plant modernization.
European
industrialists appreci¬
ate that increased production and
efficiency can come only by in¬
creasing the efficiency of individ¬
ual workers by on-the-job train¬
ing', better work incentives, better
supervision, and more enlightened
management.
Also, ' they ' are
for modern machinery,
increased mechanization, automa¬
looking
lias full employment. Germany is
tion, and modern methods of han¬
over-employed and workers there
ore now agitating for a reduction
dling paper work and cutting
through traditional and bureau¬
cratic methods.
They are real¬
of
their
average
workweek of
45-54 hours. Forty per cent of the
population in Great Britain is re¬
ported to be gainfully employed—
a notably higher percentage even
izing that they can increase their
total of productive workers only
eliminating or reducing
productive or indirect work.
by
un¬
and, with the assistance
consultants, took en¬
ergetic steps in preparation for
this new competitive situation in
Europe which they considered to
be inevitable. This company, like
most European industries, recog¬
nizes
that mass production can
come only through mass distribu¬
tion based on a free competitive
ers
of American
larger
system.
we know it in
has never
been
widely practiced in Europe. It is
likely that with a mass market,
greater distances to be shipped,
and larger quantities to be han¬
dled, a wholesaling distribution
function, as we know it, will be
developed. It is noteworthy that
devices
restrictive
considered to be on
and
Cartels
are
similar
out although they may
their way
expire slowly.
Need
The
for Capital
European industry
to the needs of a large and grow¬
Converting
and
and
market
will
salaries
their
talents,
their
for
conse¬
show, considerable
quently
mentation.
is safe
It
aug¬
to suppose,
also, that as time goes on Euro¬
stylists and designers will
a
greater influence on the
U. S. A. and world markets than
pean
have
ever
before.
Wholesaling,
U. S. A.,
as
the
mass
amounts of
of
care
transpor¬
increased road
tation, is now building extensive
national toll roads at a huge cost
financed
by the leading indus¬
tries.
Austria, with the assistance
of American specialists, is examn.
ining its woolen and cotton in¬
dustry from the viewpoint of pro¬
ducing and marketing; under the
Trade
Free
new
tions which
market
condi¬
they foresee.
ods
these
The general manager of
the largest bank in Austria esti¬
mates
that
$800,000,000 will be
000,000.
which have
It
taken
a
genera¬
develop in the U.S. A.
tion to
is
obvious to
now
industrialists
European
distribution
systems developed in the fiercer
competitive climate of the U. S. A.
are often readily adaptable to the
European scene. And this will be
increasingly true as time goes on
ops
the
and
Specializing in Louisiana
:
packaging is so backward that the
sale of consumer goods is being
Mississippi
comparable
a
amount
mainder
Free
and
were
of
needed
the
Trade
per
countries
Area,
capita
for the
with
in
re¬
the
285,000,-
000
population, or the European
Market, with a popula¬
total of be¬
tween $18 and $32 billion would
be required.
Rough as this esti¬
mate may be it helps visualize the
magnitude of the problem and the
modern industrial potentials lying
in this heretofore fragmented con¬
seriously impeded. For some years
pulp and paper products will find
an
increasing market in Europe,
and it should be noted that U.S.A.
exports
of
WHITE, NATTIER A SANF0RD
Western
tinental
I
}
JAMES E. RODDY
JOHN J.
ZOLLINGER, JR.
r>
Active
Trading Markets
in
LOUISIANA AND MISSISSIPPI
BANK STOCKS AND
=
LOCAL CORPORATE ISSUES
a
The
in
Europe
til
IN CORPORATE D
;
'$>
c
219 CARONDELET ST.
180 & 181
(Ground Floor)
KKW ORLEANS
pTtEVEPORT, LA.
.[Ik'
BATON ROUGE, LA.
<l. d. 235
Tulane
0161
12, LA,:. ::.
JACRSON, MISS..
LAFAYETTE, LA. -J"
only regional or national in scope,
will,
amalgamation,
by
become
reporting
European.
Statistical
will take
additional value, and
machines, in this4
others, will
office
modern
instance
as
become
activity
on
imperative need. This:
an
—
in many
methods and new:
new
machinery for new work—will set
a
standard for large industries,
municipalities, and local- govern¬
ments in the handling of Statis¬
this is the subject
that dominates
their thoughts and meetings.
An Austrian Government official
"We have had
Swiss experts and
said to the writer,
German
and
consultants in our industries,
our
ists
but
the Common Market,
special¬
consultants on the man¬
with
now,
need is for American
and
agement level."
Atomic Energy
Probably the most potent factor
in
the
development of the Euro¬
Community, as it
is the creation of
Atomic Energy
Community.
Thus,
while
the
Common
Market program must
rationalize a huge complex of
trading practices and regulations,
developed over centuries of com¬
petitive and nationalistic contest,
the present stage of nuclear en¬
ergy development permits, in fact
compels, an immediate and total
pean Economic
is now termed,
the
European
approach to this* one important
aspect of international policy by
all western Europe.
Thus, in a
.'j
have been confident of
maintaining their trade position
under existing competitive forces
are
asking themselves how well
prepared they are to survive or
prosper
under the
newer
and
wider competitive situation now
being created.
Many recognize
that they must soon "decide, for
example, whether they are going
to
simplify
their
merchandise
lines
and
specialize
on
fewer
items
at
lower unit
prices or
specialize on quality short riyas
at high prices.
Many are aware
that their present sales organiza¬
We
Specialize in
LOUISIANA
now,
tions
are
inadequate for the
Municipal Bonds
%
1%,^ M
M
*
JF
Barrow, Leary
& Co.
Investment-Securities Since 1934
M||||pf|g^
Phone 3-2573
.
515 Market
Street
LOUISIANA
SHREVEPORT,
new
selling task ahead of them. Sales¬
men
must now be equipped to
travel
and
sell
internationally.
must know at least one
foreign language and, in
most cases, be university or col¬
UNDERWRITERS—DISTRIBUTORS—DEALERS
They
lege
xTeletype
to
were
preservation, canning, and
Mass Market
other
t
:
now
area.
Selling in
IKE D. SCHARFF
1956
$100,000,000.
European businessmen who, un¬
New Orleans
products
paper
Common
tion of 162,000,000, a
Municipal Bonds
until
associations,
Community
plastics, and other forms.
Paper
consumption
is
approximately
one-third that of the U. S. A. and
and facilities to enable
Austria to take her place in the
If
;
and frozen varieties.
canned
The European
Packaging in Europe, both for
transportation and for merchan¬
dising, is far behind the U. S. A.
This applies to all kinds of pack¬
aging:
paper - based
materials,
Free Trade Area.
DEALERS
foods,
devel¬
Market
Common
competitively.
dustry
needed to modernize Austrian in¬
•
will exist for
patricularly
market
growing
American
all
merchants that
and
merchandising
and
magnitude
capital requirements is
supplied
by
the
example
of
Austria with a population of 7,-
DISTRIBUTORS
Quality is not uniform and prices
high as compared with Amer¬
imports. For some years a
are
ican
tics and paper work: A new mar¬
facilities, modernized trans-1 grocery field. Its methods were ket and new pace will be set in
portation services, and the trans¬ adopted completely from a lead¬ the sale and installation of mod¬
formation
of
;;
existing factories. ing voluntary grocery chain store ern office machinery. *
These
factories
will * need
im- organization in this country. This:
The Common Market is now the
proved
plant layout and new chain is growing rapidly in Hol¬ livest topic of conversation among
England,
West economists, bankers,, and busi¬
equipment including more auto¬ land, " Belgium,
matic
and
high-speed
devices. Germany and Austria. Thus this nessmen in Europe," and will Con¬
founds itself able
to tinue to be so. One Italian busi¬
Many new factories and much company
new
equipment are already on adopt, almost overnight, Ameri¬ nessman connected with an inter¬
order. Italy, for example, to take can
wholesaling-retailing meth¬ national multiplant company says
of
•
ning, packaging, pricing, and sales
promotion, leaves a large margin
for future development in Europe.
power
An indication of the
UNDERWRITERS
growing and harvesting of vege¬
tables or fruits for freezing, can¬
Trade
market will require large at least one European wholesalercapital for the devel¬ oriented voluntary chain store or¬
opment of nuclear energy, exten¬ ganization has been developed and
sion
of present
conventional is operating successfully in the
ing
packaging of foods is under-de¬
veloped by U.. Sl standards. The
contracting
of
crops,
scientific
Today
European
salesmen are too frequently rou¬
tine
order-takers, provincial
in
outlook, with the limitations that
these qualifications imply.
Better selection and training of
salesmen is already being under¬
taken. Here, too, European busi¬
nessmen are looking to the U.S.A.
for
guidance, and European
Municipal and
trained.
Corporate Securities
Arnold
NATIONAL
&
Crane
BANK OF COMMERCE
BLDG.
NEW ORLEANS 12, LA.
branches of National Sales Execu¬
tives
Inc. in Italy, Germany, and
Austria
enthusiastically sup¬
ported and: attended by business¬
are
JAckson 5-0711 A LD 419
Bell
Teletype—NO 175
^^gSBSBBSSg
Volume 188.
Number 5804
will
real- .sense vEurgtom
...
The Commercial and Financial Chronicle
be the. J^und^VEuratom/'
European unification.
•
} Th(? "preambl^ to -the' treaty^bf
Jan.
19^ ambnkv'tii^ sbC na^
tions states tbat ihe piartrcipatihg
Governments
'
are:
;
.
;
States
"The: United
1
dated Febiu-i
.
.V"1^
•key- and:aMior^to^:the: iorces^of, ary,1958:
109
(2825)
,
bas
the
;.t^bnology,^.skill,, .andicapital: .to £"•
^velop;: ^clear
but_^no; ;,
^hoed.fprat, ;W^|ern.Eu- |
rope
•
have puclear energy
must
create the 'condi^ td:.groVt and_ prosper,.; but :stiH
•ST?k2^JSSI:' -Jacks-the means to produce it on
I
r^uuie<i:
develop- an adequate scale.::By an imaginSrSrv wbiHiVertv i ir-5 nrnvi^ ativepolicyof; cooperation; with
which
w lIk
provide
Resolved
to
.
Euratom
and,
processes
uting
addition, have
c?n|f^~
the tvell-bemg of their
to
'
(
'v
.
activities
-
Euratom
of
are
to be deyoted to the peaceful uses
of atomic energy.
Since nuclear.
combine
Eu-
^ capability
and, jthereby, achieve, the prompt
and effective mobilization of an
important resource of .the. West
to
,
peoples.
.The
in
can
we
the mutual
o^
advantage
both
Europe and America."
it is too early to predict, with
any certainty, the practical course
will
Euratom
research requires significant hum-
-
follow" from
con-
However, a
highly qualified people, clearer picture will emerge as the
and: very
expensive equipment Euratom organization begins to
and
raw
materials, ; Europeans implement -the- various internarecognize that only by coordina- tional agreements which are: the
tion and consolidation of. all their foundation of Euratom itself. Varbers
realization.
to
cept
of
.
ff
t
they
accomplish ious aspects of this program will
undoubtedly be commented on at
oghize that their efforts must be the" Geneva Conference;: and the
all .coordinated to minimize du- action of our own Congress will
plication and wasteful effort; Two certaifi^k^e a ^gfeitoht bearbasic approaches i will: be: (a) a ing upon the immediate program
common program for training and Euratom will undertake,
research and, (b) a program to
One positive indication Of the
e
o r
can
s
Worthwhile objectives.: They rec-
.
stimulate and coordinate the ef-
dynamic character of this movement was illustrated by a press
noteworthy, too, that in association release from Washing*
order to; promote technological ton, dated Aug. 29, 1958 stating
advances, patent laws, as they ap- that President Eisenhower had
ply : to nuclear technology, will be signed legislation that day providamended.
;
ing U. S. help to West Europe in
forts of the six member countries.
is
It
The
of Euragoal, over the next
10 years, of 15 million kilowatts
of electrical energy from nuclear
trical
sources.
Depending ohthe.char*
acter
of
a
the
program
.
cost
cost
It
'energy
energy
Of
ot
would
sources
^s
.
felt
that
from
nuclear
-trom
nuclear
be
comparable
more,
conventional
sources.
.
.
While
the
United
program
to erect
materials handling and
training
tronic
States
ac-
search
self will
raise, making
a
.
follow
-
• -
..
in
nuclear technology
industrial
As
stated
and
by
related to
commercial
the
20th
mate.
uses.
Century
-
total exr
-
...
The
same
States
companies
now
:
Anaghosti
Underwriters
—
may
be said of
their manufacturing and
Italy and of other European couii-
mg
tries.
may
Vincent B. D'Antoni
Louisiana and
Municipals
—
We
George J. Bourgr
Dealers
especially invite
your
inquiries in:
Canal Bank Ofl Trust
:
Mississippi Skipping Co.
(Preferred and Common)
South Shore Oil
Southdown Sugars, Inc.
Standard Fruit A Steamship Co.
(Preferred and Common)
Sterling Sugars
MIDWEST STOCK EXCHANGE
Brown
John E. Kerrigan
Investment Bankers
321 Hibernia Bank
Building
NEW ORLEANS 12, LA.
market-
will
in
be
an
accelerated
licensing agreements
and sale of
FIRM
products and processes by Amer¬
ican to European companies and
by European to American com¬
panies. In this context there will
be an increasing use of agree¬
ments for exchange of, technical
nel.
ORLEANS12, LA.
Tulane 6461 it Tulaae MI2
Teletypes NO 189 & NO 190
Loug Distance 345 & 389
UNDERWRITERS
LMNSUUU
;
*
products
ttow exported
from the: United
States, to Europe will find the
Common Market import tariffs
too steep to climb.
Other over¬
seas markets will prove more dif¬
.
^
*
"
MUNIOIPALS
NEW ORLEANS BANK STOCKS
PRIVATE WIRE SYSTEMS
PERSHING & CO.
GREGORY & SONS
GL0RE, F0RGAN & CO.
On the other hand,
Europe will become a larger im¬
porter of raw materials, agricul¬
.
products, and special ma¬
chinery including machine tools.
In the wake of these major con¬
siderations it will be found, as is
now in evidence, that there will
be an increasing need fori
*
_
.
" '
MEMBERS
Midwest Stock Exchange
New Orleans Stock Exchange
TEUPH0NI
(k> Industrial s p e c i a 1 i s t s—
TO mi
engineers, technicians aiid de¬
signers in such fields as process
TELETYPES
and industrial engineering, plant
ROMKfiNpaffM
engineering,* ~ production ~ incen¬ f0JB/dr»feHpl)
tives, plant layout, transportation
AMIMMf
-Mi mmm
232 CARONDELCT ST.
NSW ORLEANS
MARKETS
Brewster Bartle
DEALERS
CORPORATE SEOWmES
,
manufactured
ficult to hold.
—
DISTRIBUTORS
•
B«ll Teletype NO 344.
Wm. Perry
INC.
sun
809 HIBEHNIA BUILDING
NEW
this
NEWMAN, BROWN & CO.
tural
NEW ORLEANS STOCK EXCHANGE
.
manufacture
the
Some
New Orleans Public Service Co.
Stocks
with
TENNESSEE, SOUTH CAROLINA, NORTH
information and technical person¬
•
Belle lsle Corp.
(Assets)
New Orleans Bank
unique economic revolution.
LQUtSNUM, MISSISSIPPI, ALABAMA,
needs.
The obvious choice
not necessarily be the best.
There
Distributors
of Euratom.
associated
^
for
E. N.
progress
Morris W. Newman
operating in Europe will review
all their existing facilities, loca¬
tions, operating and sales; meth¬
ods; and personnel to determine
changes will need to be
made to meet the expanding mar-
increase
Erwin R. Schweickhardt
all -those
$100,060,000
a
.
Europeans, and
specialists to
.
-
.
the
and the .benefit of
energy
$90,000,000
--
United
This will be in addition to $215,-
000,000 which Western Europe it-
these fields.
in
(c) Atomic
:
unreservedly
the penditure of $543,000,000.
•
•*" •'/.-/
rhpeari scientists ho the develop*
—
~
Looking Ahead f ; ' A:
ment of atomiC energy, it was the
: The United States will continue
exigency -of'World War II that to encourage- European • economic keteoiiditions both for sales inside
pushed this country to the fore- integration and the Commori Mar- Europe as well as for export sales.
front in the development of the ket as an
important element of
United States companies now
bomb * and later to the peaceful its
foreign policy.
exporting to Europe and Other
uses of nuclear energy—explora¬
European countries will con¬ parts of the world should lose no
tion for uranium ores, building
tinue to encourage American in¬ time examining the advantages
atomic piles, the design and con¬
vestment in their countries.
As of starting European operations
struction of reactors, the uses of
freely stated by the Netherlands to serve their European and other
isotopes, and the application of
Government, the quickest way of overseas Markets, for example as
nuclear energy to electrical
_and acquiring American experience, a wholly owned American cornother power developments.
It is and
technology is by enticing pany in Europe, or in partnership
for this reason that it may be exAmerican plants to Holland by with a European company, or by
pected that Euratom will benefit
preferential treatment in regard licensing the manufacture and
from American technological
to local and national tax remis- sale of their product line to one
progress in the nuclear field and, sjon
liberal treatment regarding or more European manufacturers.
as time goes on, the United
States,
•
„
Each of these companies Will need
in turn, should be the recipient exP°rt of Proflts and, generally,
to decide which of the many Eu¬
of practical and: tested advances creating a friendly working cliropean countries is best suited for
basic research OOntf ibution hi^Eu-.
-
Similarly in other fields of scientific research and development,
It is too early to pinpoint and
specify what changes and advantages are going to be found in
nro„
standards....
knowledges
.
packaging;
industry, elecprocessing, and the
within
data
.
U. S. performance
*
■
-
..
.
An advance for Uranium fuels...
fuel
..;
.
joint
An export-Import Bank loan of_-_---_--.-_--.-~- $135,000,000
'A:grant for research development.,
$3,000,000
Guarantee that atomic fuel elements will meet
the
with the cost of electrical energy
from.
a
in Europe six nuclear power re¬
actors- with a total capacity of
•
In^xpendUure^n^l^^der of^0MWO OOO
further
building a million kilowatts of 1,000,000 kilowatts of electricity Bke.
. .
.
.
atomic power capacity.
v,-,
and^to. improve power reactor
(b) Professional consultants in
(tJo finS /011 makes availabie technology through a broad scope the broad field of marketing: ad- specific- industries,, functions, or
$328,000,000 of assistance to Eura>
vertising, sales promotion, sales companies. There is every reason
torn- Its declared purpose is to research program, training, merchandising, and re- to believe, however; that the tide
finally further European unity, and to
This aid mclhdes:
1
"
L
is flowing for the good of Europe,
stated objectives
torn call for
Peter Cross, Vice-President, Van Strum & Towne (Canada) Ltd.; Dr; Harry L. Franklin,Ikihg
& Company, Inc., Representative, Frankfurt, Germany; Emile G.
Speeger, European Re¬
gional Manager, Munich, Germany; Dale Weaver, Regional
Manager, Seoul, Korea; Thomas Suzuki,
Divisional Manager* Honolulu, Hawaii; R. A. Goudey, St. John's, Newfoundland;
King Merritt,
President, King Merritt & Company, Inci
Merritt
-
Drilling
Canal Assets, Inc.
Canal Trust
Central Louisiana Electric
Fifteen Oil Company
Hibernia Nat'l Bank
Jefferson Lake Petro Chemical
Marine Drilling :
Mississippi Shipping 0b.
Nat'l Bank of Commerce
Southdown Sugars, Inc.
Soathshore Oil and:
Development
Times-Picayune Pub. Co.
Whitney National Bank
i
The Commercial and Financial Chronicle
(2626)
110
The following statistical tabulations cover
Indications of Current
latest week
week
Business Activity
Latest
Week
Ago
75.1
"
1,742,000
New
Stocks at refineries, bulk terminate, in transit, in pipe
Finished and unfinished gasoline (bbls.) at-,....
—'Jte———
6,849,710
7,807,000
28,141,000
2,221,000
12,620,000
6,712,000
2,234,000
13,291,000
6,536,000
2,286,000
12,352,000
6,849,000
7,592,000
173,600,000
31,009,000
31,932,000
169,210,000
32,369,000
188,087,000
31,283,000
163,145,000
58,839,000
161,439,000
66,199,000
155,826,000
65,137,000
.Dec.
at
7,003,385
7,686,000
27,654,000
68,095,000
Revenue
cars)—Dec.
freight received from connections (no. of
<;*
528,911
571,850
$353,298,000
170,871,000
182,427.000
139,233,000
.Dec. 11
43,194,000
,
Federal.,,,—^———————
$399,132,000
160,005,000
239,127,000
208,675,000
30,452,000
$374,316,000
123,630,000
250,686,000
197,415,000
112,140,000
105,251,000
53,271,000-
6,889,000
4
Residential
•;
-Dec.
8,625,000
Pennsylvania anthracite (tons)—-
460,000
8,600,000
419,000
*7,565,000
-Dec.
371,000
RESERVE
DEPARTMENT STORE SALES INDEX—FEDERAL
SYSTEM—IM?-49 -RVERAGE =a 100
6
245
171
148
Dec. 13
DUN A
13,450.000
13,017,000
12,378,000
12,570,000
..
Sewer and
INDUSTRIAL)
—
„
267
269
274
294
n
-Dec.
9
6.196c
6.196c
6.196c
Dec.
Dec.
ton)
•
/
9
9
$66.41
$66.41
$66.41
$66.42
$39.83
$40.17
$42.33
$32.00
5.967c
at—
—Dec.
Dec.
Dec.
——Dec.
—.
—
—
,
'
MOODY'S BOND PRICES DAILY AVERAGES!
u. S. Government Bonds—
—
31.250c
Construction
Commercial
26.525C
27.100c
13.000c
13.000c
Aaa
12.800c
12.800c
12.800c
.'
:j
service
-r^-—
'
'•
41 '
.*
21'4
'■?.
t
09 Z.
96
506
176
:
.
•'
187
124
J
——_
number—-
215
657
.i—
—;
—
•
8
•
.
—
—
1
31
86
'
'■
number
-
163
•544"
■
176
12.000c
12.000c
11.687c
Total
number
89'
99
87
1,271
1,039
,1,122
$12,141,000
6,947,000
$18,167,000
5,937,000
14,172,000
7,841,000
2,046,000
$11,601,000
——;
10.500c
^Manufacturers'
11.500c
11.500c
11.187c;
10.000c
•Wholesale
24.700c
24.700c
24.700c
26.000c
Retail
99.125c
99.000c
99.875c
92.625p
Construction
87.00
78.94
88.48
.
..
—__;
——
92.88
*
liabilities
90.48
90.06
Dec. 16
95.16
95.16
94.71
99.20
93.52
93.08
92.93
94.86
90.63
91.62
—-
—
^
liabilities—
liabilities
16,103,000
6,771,000
—
liabilities
Commercial service
Total
--4—
liabilities —
liabilities.
-
.
7,994.000
3,195,000
.
$47,268,000
l
—
5,306,000
i
—
7,691,000
16,947.000
$48,163,000 ' $47,428,000
"
...,
—
,,
89.92
90.06
89.64
EMPLOYMENT AND PAYROLLS—U.
OF
91.48
84.30
84.30
83.79
82.03
Dec. 16
88.67
88.40
87.72
88.54
.Dec. 16
90.48
90.48
Dec. 16
92.64
92.64
-Dec. 16
3.71
3.61
3.57
.Dec. 16
4.37
.4.38
4.41
4.30
.Dec. 16
4.06
4.06
4.09
3.80
.Dec. 16
4.17
4.20
4.21
4.08
—AmiJDec. 16
4.42
4.41
4.44
Dec. 16
A
4.84
4.84
4.88
JDec. 16
4-51
4.53
4.56
JDec. 16
—
JDec. 16
...
Railroad Group
Public Utilities Group—,—
Industrials Group.
'■:.
1
DEPT.
S.
LABOR—REVISED SERIES—-Month of
"
'92.50
v
»
r
—
.
A*
•—
■
A
94.56
•/
• ■ z
Railroad Group
Public
——
Group.
Industrials Group,—,
.
-
—
4-31
5.02
4.52
4.38
4.38
4.40 '
4.23
4.24
390,6
391.3
398.0
392.2
Production
All
JDec.
259,412
345.836-
277,282
286,263
311,196
.Dec.
84
88
93
.Dec.
Percentage of activity.
Unfilled orders (tons) at end of perlod.
344,015
.Dec;
(tons)
438,091
369,636
460,078
110.61
110.54
109.48
0tL,
PAINT AND DRUG REPORTER PRICE INDEX—
1949 AVERAGE = 100.
.'
..i.-.n
m,
582.460
616,710
2,248,140
2,340,070
2,830,600
2,956,780
561,150
2,194,000
2,755,150
Nov. 22
Nov. 22
612,100
53,700
740,440
35,200
770,620
104,700
Other transactions Initiated on the floorTotal purchases—^—,—
Short sales
Other sales
Total
■■■...
■
sftlea
,
,
621,810
•
Nov. 22
■■
METAL PRICES
626,820
675,510
662,020
487,380
Lead—
■
Other transactions initiated off the floor-
Total purchases
<
Short sales
Other sales
Total
J——
—
—
1,060,270
987,739
761,850
149,100
218,860
149,450
1,061,428
1,280,288
181.680
869,100
1,050,780
4,797,210
4,442,869
3,080,460
870,770
4,028,318
847,530
657,150
3,819,420
4,899,088
4,666,950
1,016,092
—Nov. 22
Nov. 22
1,165,192
Total round-lot transactions for aecount of membersTotal purchases
—
;
Nov. 22
Sbort sales
—
—Nov. 22
4,372,705
785,26ft
-Nov.22
.—Nov. 22
3,886,042
4,671,302
sales
—
*
—
—
—
.Other sales—
Total sales «J.
—
—
(E.
& M. J. QUOTATIONS)—
'•
r
•
-
537,606
(per
2,186,086
•
!
Odd-lot sates by dealers (customers' purchases)—t '
Number at shares
.
28.665c
Dollar value
.....;
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales—
Customers' short sales
—;
1,884,230
1,553,096
1,305,322
$53,691,351
Nov. 22
$38,492,604
$89,140,083
$70,838,537
-Nov. 22
1,892,415
1/884,693
-Nov. 22
9,669
10,092
-Nov. 22
1,882,746
1,674,601
1,672,709
10,122
1,662,587
.—Nov. 22
$89,780,578
$90,715,850
598,270
603,110
567.270
284,930
-NOV. 22
598Z270
603jT6
567,270
284^930
-Nov. 22
582,920
609,380
455,820
569,110
—
—
Customers' other sales,
„..
Dollar value——.
Round-lot sales by dealersNumber of shares—Total sales.
Bbort sales
-Nov. 22
-Nov. 22
—
Other sales,
Round-lot purchases by dealers—
Number
1,900,583
of shares
tv
.
1,070,306
25,031
1,045,275
$43,988,883
$76,078,809 "
-
'
,
•
•
£229,772
£191,887
•.
£236,588
c=
947,950
XT~" 22
20,989,220
21,937,170
1,006,060
.
1,102,400
20,820,850
21,055.820
1,054,470
19,953,420
21.826,910
<
.
13,189,350
14,243,820
13.000c
12.642c
12.800a
12.442C
£74.049
£83.167
£75.838
£74.576
£83.327
11.367c-.
11.867c
£70.467
£72.803
commodities
i
,..10.8380
li.338c
£75.275
13.500c
£69.492
4
(per pound)
Member
100):
31
firms
—
EXCHANGE:
—
T7089d
10.000c
10.500C *
£67.527
-
"
£67.063
.
(GOO's omitted):
$2.80261
89.359c
$35,000
$35,000
Z$232.769
$226,957
36.590c
32.590c
-
29.000c
33.000C
29.500c
$57,000
33.500C
$84,000
-
$1.45000
-
-$1.70000
$1.45000
$1.70000,
$1.45000
$1.70000
"
4
$2.00000
$2.00000*
carrying
on
$26,800
$24,700
.
119.0
—Dec.
9
-Dec.
9
90.2
•91.1
92.2
91.8
.Dec.
9
108.8
*108.5
109.7
107."
Meets
.Dec.
9
102.3
101.7
104.8
9
127.0
*127.0
126.8
125.8
35^50c
$28,100
626.000
35.250c
*
f
74.000c
$2 Yo
$2.25
$8,607,562
39,354
*
margin accounts—
balancesZ-
$3,311,000'
*$3,231,000
1
123.000
hand and in banks in U. S.
346,000
122,000
345,000
—
Market value of listed bonds
.
1,140,000
255,116,605
108,044,677
*1,719,000
248,388,149
-
353,958
878,913
,285,000
254,000
196,674,919
99,014,578
V
104,908
1,933,000
1,972,000
1.847,500
94.1
.Dec.
•*-
74.000c
$2.25
Total of customers' free credit balances—
Market value of listed shares-
Farm products.
Processed foods.
-
i
Total customers' net debit
Credit extended to customers—:
AD commodities other
.
than farm and foods.
119.0
.
119.2
118.1
•Revised figure. ,8 includes 867,000 barrels of foreign crude runs.
§ Based on new annual capacity of 140,742,570 tonr
as e< dan. 1, 1958, as against Jan. 1, 1957 baeis of 133,459150 tons.
tNumber of orders not reported since introduction- of
Monthly Investment Plan. (Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
•
Member borrowings on U. S.Govt. issues—,
Member
•Revised
borrowings
on
other collateral—:
-
90.368c-
'78.173d 1
-
96.558c
—
4—
.
,
"
—
Bismuth
-
13.300c
£75.584
-
$2.80328
Cash
Commodity Group—
AB
•
■.
—
As of Oct.
WHOLESALE PRICES. NEW 8ERIES —U. S. DEPT. OP
LABOR—(1947-49
23.109c
£187.929
—,
NEW YORK STOCK
_Nov. 22
26.339,c
-
28.573c
Exchange (check)$2.80553
York Straits—
'; '99.022c
Gold .(per ounce, U. S. price,
• - $35.000
Quicksilver (per flask of 76 pounds)
$227,045
(Antimony, New York, boxed
32.590c
Antimony (per. pound), bulk.Laredo—29.000c
(Antimony (per pound), boxed Laredo^
:
29.500c
:Platinuin, refined (per.Nunce)i
$55,864.
tCadmium,.4 refined . (per.ijoimd)——4ii$1.4500ft
(Cadmium (per pound),.
I
;
$1.45000
{Cadmium (per pound
4
/_•'
$1,45000
i Cobalt, QT/c
grade (per pound—ounce: ton )jz.
$2.00000
Aluminum, 99^ grade ingot weighted Average
*
i
(per pound) ———:
—i-——
$26,800
f
Aluminum, 99 To grade primary pig—4.
$24,700
.Magnesium ingot (per pound)—
■__
»
35J250c<
•♦Nicker*
_•
I
^
74.000c
1
Nov. 22
.
_
190
..-:89.066C
—
■
2.23
4.95
£236.268
——
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
PGR ACCOUNT OF MEMBERS (SHARES):
Total round-lot sales—
Bbart sates
:
4
.
TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
Other salesTetol
$2.09
:
2 "^0
27.310c
-
-
Nov. 22
———
—
-
Silver, New York, (per .ounce)—Z-.,;,——
90.125O-"
Silver, London (per ounce)^.li————-• Z 77."419d
New
,39,8
39.0
-29.476c
-
Tin,
.
'
£242.975
,
pound)—ZZ-Zu_Z
Common, East St. Louis (per pound),—'—
ttLondon; prompt (per long ton).::
Sterling
EXCHANGE COMMISSION:
Z
;
-aZ$2.14,-
,
EXCHANGE —SECURITIES
39.5
.
*38.4'
,
:$2i3
'
New York
' *39.9
f> ?"^-Z*i40.2:
f ■f*trj
'J
ttZinc, London, prompt (per long tqn)—-ttZinc, London, three months (per long ton)
Silver and Sterling Exchange—
'
2,843,236
■
74-Td..
-
'
ttThree months, London (per long ton)2__,_
Zinc (per pound)—East St. LonisZ
§§Zinc, prime Western, delivered (per pound)Z
687,056
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
;
.
—
■
'i
";iX;
39.6
1.95
.
Common,
958,335
—Nov. 22
Nov. 22
—
*76.83
,
39.4
—^
—
'•
V
Domestic refinery (per pound)——
Export refinery (per pound„
ttLondon, prompt (per long tori)————
ffThree months, London (per long ton)-',
417.280
861,020
,
^39.71
———'—!
Copper—
70,100
756,320
•88.75
•92.46
76.83
:2J29
November:
:
431,530
'
■$82.56
'$85.39
90.91
AU manufacturing ——j-l.Z—Z- '"N" ¥
—•—'%%*%*■■■
Nondurable^goods——Zi-_-^—Z--Z ,i r 4*4'
Hourly earnings—./- •
5'MSt
; All
manufacturing,
■&#£■.
-
—Nov. 22
ni.,-„-rT„-,„r,r
437,600
1,668,800
.x;";'"
$84215.
Durable goods
Nondurable goods
:
"
.
.-
•
1,231,200
Nov. 22
-
n
i
'k
1,887,080
—Nov. 22
,■»n
———
,
'107.81
2,684,510.
——
m
409,957
V
>
'
16,783,000
9,718,000
7,065,000
•
Hours—
.
——
-
• 84
f
———.—Nov. 22
—
--1„
■
15,744,000
8,808,000
6,936,000
162 .(5
/
Durable goods —"
Nondurable goods —r——ZZ^Z-JZZ
t
258,322
/
:
•
Z
■'Z.tZ'' -Z-'Z* r.Z' -v:L
'. '
■
'
*•155.7
6,875,000
manufacturing
Durable goods
2,996,500
2,802,270
—
Short sales
316,667
'■
.
.Dec. 12
ROUND-LOT TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions Of 'Specialists in stocks in which registeredTotal purchases
;.
———Nov-. 22
Other sales
lOtal sales
LABORr—Month of October:.-,^
.,
Weekly earnings—
•
NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons).
5,483,000
v*Z:^*96.6
15.553,000
8,678,000
.
—
FAGTORY EARNINGS AND MOUBS^WEEKLY
AVERAGE ESTIMATE — U.
DEPT. .OF.
4.10
7,413,000
5,359,000
'
12,896.000
6,564,000
151,7
.
-
4.28
4.23
.Dec. 16
—
MOODY'S COMMODITY INDEX—
*
11,943,0.00
v.
.
..
-•
Dec. 16
—Dec. 16.
Utilities
Payroll
Indexes
(1947-49
Ay^aLge==).00)—
All manufacturing
Estimated number of employees in inanufacturlng industries—
^
All manufacturing
-_;i—
Durable goods
Ji——
Nondurable goods
_--ZjZZcr----r—-
3.11
v
Baa
October:
manufacturing (production workers).
11,778,000
Durable goods
;
zzl6,480,000
Nondurable goods:
Js-j&a
:
5,298,000
Employment indexes (1947-49 Avge?s=100)—'i \
Alt "mariufacturing'
All
,
91.91
90.20
•
v
MOODY'S BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds
Average corporate
.
i
—
.
—Dec. 16
—
1:
-
40
—.
Baa
-
17-
t
67
:
•
13.000c
12.800C
Dec. 16
——
26.375C
.
Dec. 16
Average corporate
Aa
95
■
.
'
Manufacturing number
23.150c
28.675c
13.000c
10
10
10
10
—Dec. 10
Dec. 10
Dec. 10
Zinc (East jSt. Louis) at——
AJdminum (primary pig. 99% ) at
Straits tin (New York) at-
t
—
Retail number
28.575c
28.550c
——Dec. 10
:
x-^lZine (delivered) at_
45
88
16
Publie service enterprises——
Conservation and development-—^other public—.
Wholesale number
Electrolytic copper-
-
36
-
107
76
48
v
405
124
45
;
108
r
630.
BUSINESS FAILURES—DUN & BRADSTREET,
INC.—Month of October:
::/■
Z METAL PRICES (E. & M. J. QUOTATIONS):
Export refinery at
37
\
,
117
w-—
>
34
41.•
(,40
485
—I———-Z-ZI
Water
All
Pig iron (per gross ton)
Lead (New York) at
Lead (St. Louis) at—
water systems—i
; ...'
r
•
U v 72
.
Dec. 11
—
IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)
refinery
i
———
26
55
./
,
,.125
——
235
>
40
.
; •:
T
36.,
Z
.
'
.
FAILURES (COMMERCIAL AND
BRADSTREET, INC. —
—.
Domestic
——-
56
.
-259
•
47
36
;
368
31
36
Other nonresidential buildings—--—-.
1,169
;
426
^
:
is;,
.^6
.
230
,Military'.facilities' —J
1.
.Highways,
230
-Dec.
EDISON ELECTRIC INSTITUTE:
Electric output (in 000-kwh.)
Scrap steel (per gross
.'
390
1,553:
30
'
r 84
r
,17:
379
,'Administrative and service—
453,000
'
r
1
'
T
.36 ^
•
^3
—
—,
-
114
■
510
79
1,329
t
23
18
,
"r.
-
.
416
>■
'17
—
—
•
r
47 4:
52
.
27"'
22
.
71
395
Hospital and institutional^—
>
j
'
-
*
•
■:
44
519
21
.
Educational
:
;
223
;
-
'
*51
134
487
—
buildings
Industrial
.9,230,000
.
Z
——
—
,
r--
ViXxii'4-
,Nonresidential buildings
i
OP MINES):
Bituminous coal and lignite (tons)
construction
Public
114,409,000
.
COAL OUTPUT (U, S. BUREAU
r
——
-
50
30
.
—.
All other private——
v'V-
$226,549,000
t
S3*
42
.
Telephone and telegraph————Other public utilities—
l
,
»*
81
<•
I
i
•
,
183
\ 149
154'-
Z-'-v:. 52
1-
recreational-^-
and
Miscellaneous Z—__
'
332
:
-
256
81
—i---—
Railroad
t
Z'
—
—Dec. 11
Private construction——————•—■
—Dec. 11
Public construction—
——————Dec. ll
Dec. 11
State and municipal—
—
—
842
287
:
^
'
Farm construction;
Public utilities
v
51
-
165
255
Z—-irZ-T
Hospital and .institutional----—ir-.
-
"
175
319
''-.160
buildings^——„Z'
^
•
750
4
;
333
54
178
;
1
1,140
364
"760
'.
.
'
i,524 /"
"
327
167
Social
'617,836
658,086
337
57
:——-—_Z———1 ^
-ReligiousEducat.ional
v
ENGINEERING
CIVIL' ENGINEERING CONSTRUCTION —
NEWS-RECORD:
Tbtal U. S. construction.
—
.
539,191
530,163
594,476
514,560
JDec.
*
Z
.
Stores, restaurants, and .-garages——
4:
•
—
3,173
i
.
$4,174
3,005.
1,753.:
1,335 ?
Office buildings and warehouses-^.—
-
84,726
1,709
Commercial
.
ASSOCIATION OK AMERICAN RAILROADS:
JCVVV vUttV
*"■ " '■mm^
——
'
Revenue freight loaded (number of cars).
Ago
$4,416
3,087
and, alterations--———l.-'-'
Industrial
•
12,896,000
165,354,000
Month
,
Nonhousekeeping
'
Nonresidential buildings —-iV-—j:
.
27,670,000
2,447,000
Year
"Month
(nbnfarm)——1—
Other nonresidential
lines—
- .Pec.
————Dec.
.Dec.
Distijbte fuel oil (bbls.) at——
6,983,385
7,785,000
7,067,285
57,666,000
28,146,000
174,305,000
5
5
5
5
of that date*
are as
dweihng*
Additions
gaUons eachl^__„Dec.
Crude runs to stills—daily average (bblsw)^..»>,
- —Dec.
Gasoline output (bbls..—...,-.Dec.
Kerosene output (bbls.)
—
Dec.
.Dec.
Distillate fuel oil output (bbls.)
-Dec.
Residual fuel oil output (bbls.)—.
either for tin
are
Previous
-v—-r-—
Residential buildings
42
Residual {pel oil (bbls.)
construction
Private
AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—dally average (Bbls. of
Heroine (bbls.) at——,
in cases of quotations,
or,
BUILDING CONSTRUCTION—U. jS. DEPT. OF
LABOR—Month of November s(in.millions):
Total new construction—
'-J~-
,
68.1
2,000,000
*1,985,000
§2,036,000
production and other figures for tk
Latest
<
-Dec. 21
that date,
on
Thursday, December 18,1958
.
Dates shown in first column
Year
Ago
•73.5
§75.4
.Dec. 21
Equivalent to—
Steel ingots and castings (net tons)
month ended
Month
Previous
Week
AMERICAN IRON AND STEEL INSTITUTE:
Indicated Steel operations (per cent capacity).
or
month available.
or
,.
107,710,859
.
-
figure.
tBased on the producer^ quotation. (Based on the average of the
producers' and platers'. quotations. {Average of quotation on'special shares to plater.
"•Domestic five tons or m^re but less than carload lot boxed.
S {Delivered where freight
from East St. Louis exceeds 0.5c. **F,o.b. Fort Colburne U. 3.
duty included, $ (Average
of daily mean e*»<* »4d and ask quotation at
morning session of London Metal exchange.
((Increase all stocks.
- •
^
,
'
."
Number 5804
188
Volume
■*
.
.
..The Commercial and Financial Chronicle
*.
V-
'•
(2627)
v'\
•cMr. W.
November
total
,
\
net * assets
in-the.?.
Texas
of
-
$36,267,4$6//: In
aMockFui.<l Sales
^Rf^jnSti'elOntpiil Oiiuli Sharply
share Increased^fropi.
a gain of 26.9%; a'd-
per
^
the;;. l^mopths
*.i9i*ib-^
Value
: O An/
r
.. ^,*.
,
.
•
_
"
.
Power
:
Company,
Deere. &
Cou
McLouth Ste«l, Norfolk & We«t»
ern, Reliance saectrlo and Bngh
Investors
neering, Schering, Standard Reg¬
Oil, Ltd., Industrial Accept¬ ister, and Thatcher Glass.
ance
Corp., Ltd., and .Canadian
Tire Corp;, Ltd." <
during the quarter included Ad-
dressograph-Multigraph$ CattiN,
Centr^^gQMthweiirCoirillliiilll^
Insurance, Resrn^ds Metals, Se¬
attle
First National Bank, Arid
Supreme Court's
Gas Decision Spurs
of 1958 were 48% " greater than
Record High Sales
for the calendar year 1957, it
-'
•; >
- H
;
JT .v
year 5 .Sales of; new shares of Bullock
more Fund, Ltd. for die first 10 months
,f- -
steel* industry next
;
$7>48 to $9.29,
in
/.' i
portfolio during *he quarter in¬
cluded
American arid Foreign
Star
$
Fund 1? '
fiaUiiu «ri nil timg hlgh of
nave
V',.
\
Syndicate of Canada, Ltd., North
By ROBERT R. RICH
report,that^'w ^
v,
quarterly
commitments
new/
T/CaHer, III, President.
of Texas Fund. Inc.. states
,■
which the fund's shares are
qualified for sale.
Investment portfolio changes
during the six months 'Include
in
Texas Fund Assets
111
^<
-•
United Fruit
:
:
/
wlU produce almost 30%
|teel than m 1958, predicts The
Mr
Carter further remiuked'Milwaukee Company, m its Dewas
IDS November
that a shareholder who had pur- cember. report toinvestors re- announced by Hugh Bullock,
On Monday, Dec. 8, Gas Indus¬
chased $100of ^Tex^Fund%orii^®«f^^; , ' President, in the letter accom- tries Fund of Boston,' a mutual Sales Reach
Record
Sept. 1,. 1949,oyhen the Fund
€mt|iutin; 1959 should amount panymg the year-end (Nov. 28) fund with investments principally
started, and who had left ; his to ^10 milli°n tons, the report dividends of seven cents per share in.natural
In honor of Joseph M. Fitggas arid oil, scored the*
dividends: and capital gains dis- ,5?^8' P°ITl?are4 with only 85 mil- from net income: and a distribubiggest sales day in its nine-year simmons, President of Investor^
tributions-to-be reinvested, couldv.
't°npt c*Pected this year.
:
tion of 60. cents per share from history when investors purchased Diversified Services,^. Inc., the
have liquidated his shares:;for/.a^'.-^S^ffiftoproyed inventory bal- capital gains,
over 100,000 shares of the Fund, company's nation-wide sales force
little over $400 inin futomobile deTotal assets with investments at for a gross volume of more than topped all of their previous pro¬
Major portfolio changes-include
spelling of new construe- market quotations .were $44,039,duction records during their an¬
$1,700,000.
the addition of: Jefferson Lake- tlojH Vblui^eand many new cost 829 on Oct. 31, 1958, compared
Gas
Industries Fund officials nual November sales campaign,
Sulphur and^Ihiion-Oil feGas, Wu^te4^°^^s'^favor anim- with $31,0?9,986^h; Opt. ;31, 1957. attributed the record sales
day to called "President's Month." No¬
Corporation bf Louisiana; increase
pujiook for the steel proBullock ,:F u rid; • v Ltd. is the the fact that investment dealers vember safes of mutual ' fund
iri; common Stock holdings were .ducers -iii.the. years ahead, the "growth>fvuid inibe Calvin Bui- across the
country quickly recog¬ shares arid face-amount invest*
made in' Arizona Public Service;
firm believes.
lock group; with [ major emphasis nized the substantial benefits ac¬ ment certificates issued by Inves¬
C o m irt u n i t y, Public
Service;
of steel is now . placed on .securities o f f e r i n g cruing to the natural gas compa¬ tors Group* companies sponsored
justed
ttie
for
20
cents
capital
gains, distribution of Aug. 31*1958.
;
.
-
.
,
;
.
;
nies
as
a
result of Monday's Su¬
preme Court
Transcontinental Gak Hpe^Line^^
Eliminations in common stock
reversal of the lower
court in the
"Memphis Case."
Court ruled that G r a d y C1 a r k^ Vice-Presideritgas
companies may put higher Sales, announced.
Gross
dollar volume
in cash
charges for gas into effect while
the Federal Power Commission sales of the five^ affiliated mutual
funds for which IDS Is notional
investigates the increase. The ulti¬
t^t ^dpplies, the report, called
The Supreme
>r;^e Griffin Speaks, says.
.
HP
' -1
.
holdings were made in Fort Worth,
Ihe steel industry felt the re- Axe-1 empletOll
National Bank; Columbian Carbon> cession primarily because of weak
-f/ ,)•. _
and River Brand Rice Mills. De- JjgnancJ fpr*;automobiles, it says.
(jfOWtfl FlHirl
Creases were made in Gulf States
better auto sales seehi V
"
i
"V"
mate
beneficiaries
will
be
the
Utilities; Oklahoma Gas 8c, Elec- *<>- ^nvfbe offing. Many confj
9^0/
consumers of gas since the indus¬
trie; Anderson, Clayton & Co.; ^h?fKSr;who bought their cars on
lll8C»
/0
try is once again in a position to
(the automobil£M(ip.Gulf Oil; and Texas Utilities.
Net asset value of the shares of attract the
vast sums of capital
d.ustJ'y k biggest year) have _comAxe-Templeton Growth Fund of
necessary to expand service to
Jheir^ payments new auto
..and are,;Canada s rose more than 24%— fill the presently unsatisfied con¬
E. D. Manacher Opens
assume
from $21.27 to $26.49 in American
sumer demand.
WHEATRIDGE, Colo.
.
_
+.
£°mts ouUhat dollars—during the first half of
D. Manacher is conducting a seeu- .17#% pf ,1957 steel shipments (14.2 the 1958-59 fiscal year according
rities
business from officesat.r'miluon f;tons) went to the auto to the
fund's semi-annual report
6901 West ~32nd Avenue.
manufacturers..
~
Stated in Canadian
u
American Mutual's
"
:i.
.1
■,■-
Form Mutual Fund-Inv.
■
LOSvALffllTOS,
dollars
Probably the most assuring
..ife??S-t®WJVoivthJfactorfavoring
Calif-Mutual
afte5r ®0U11«ie|cil
iSS-«t^.Wl»a volume in 1959, 5%
.
a
principal" of the firm.
r.
Steel makers have reduced their
break-even
cutting
point by new costtechniques in connection
v^ith,i automation and quality cohThese together with new
steelmaking methods such as ditrol.
THE
LA/AKP i?TT^h Xnc.
i" r, A „n Jr.. I A LP, t
'
godds are permitting major pro?duehrs
to - make
"comfortable
{' 44 WallSt.i New York 5, N. Y.
r
Initial Dividend
declared
a
share
dividend of 12 cents
on
of the Fund
The
the Capital Stock
23, 1958.
Thie
?
divi¬
^
dend is
payable from net invest¬
ment income.
- -
•
-
since
earnings
share
per
1947, which is "equal to
.better; than
chemical,
t-
Treasurer
'
industry has almost
the
record
of
electronics,, drug
or
the
arid
-
R.S.Troubh
v; ;
steel
doubled" its
payable January 15,
1959, to stockholders of record
December
profits"* operating at only 50% of
capacity. (The report points out
that the industry, should produce
at 75% of capacity in 1959.)
The Board-of Directors, today-
per
a
.
Assets
distributor
and
ager amounted
investment man¬
to $41,634,145 for
the
month, an increase of $16,855,over
the comparable figure
last year, and a record high. These
funds are; Investors. Mutual, Inc.,
564
investors Stock Fund, Inc.,' Inves¬
tors Selective Fund, Inc., Investors
Group
Canadian Fund Ltd. and
Payment Fimd,
.
Investors Variable
Inc.
Jump 48%
Total
maturity value
Of face-
amount installment certificates
Total assets of American Mutual
purchased by individual investor!
during November was $63,336,634.
These certificates* were issued by i
ported *°r
fiscal
which ended on Oct. 31. This was rising from $63,768,099 at the be¬ Investors Syndicate of America,
ginning of the year to a record Inc. and Investor!
from $2,928,841 to $3,517,871 in
Syndicate Title
Canadian dollars (in which the high of $94,920,871 at the close, it 8c Guaranty
Company, New York,
was stated by President Jonathan
fund's records are kept),
both IDS subsidiaries.
In their letter to shareholders, B. Lovelace in his annual report
Emerson W. Axe, Chairman, and to the shareholders. Total net as¬
Hail Joins Weeden Staff
John M. Templeton, President, sets at the year-end were more
(Special to The Financial Chronicle)
'
call attention to the continuing than ten times the $9.1 million
held by the Fund when it com¬
LOS ANGELES, £alif<--Geral<!
E. Hall has rejoined Weeden * &
economy. "All phases of the con- menced operations in 1950,
During the year net assets per Co., 510 South. Spring Street. Mr.
struction industry have shown
substantial gains in the last six share rose from $7.15 for each of Hall was recently in the munici¬
months," they report. "Depart- the 8,921,330 shares outstanding pal bond department, of J. Barth
at the beginning of the period to & Co/ Prior thereto he was in
ment store sales in September
were 7% higher than a year ago. $8.47 for each of the 11,211,130 the municipal department of
shares outstanding at the end. Af¬ Weeden & Co.
"The
newsprint industry has
ter adjusting for the capital gains
been showing signs of strengthendistribution of 42 cents paid dur¬
Form First Securities
ing in recent months. The rise in ing the year, this represented an
BOSTON, Masa^—First Securi¬
in net asset
the prices of copper, lead and increase of 24.4%
ties Co. is being formed with
value per share.
zind have brightened the outlook
Net investment income, exclud-. offices at I State Street to engage
for the Canadian mining industry."
in a securities business. Partners
ing realized gains on sales of se¬
They also report a continued curities, for the. fiscal year just are Frank L. Wasserman and Al¬
Datz, both formerly with
increase in the number of states ended was $2,394,264, equivalent bert
Brothers Securities Co.,
to approximately 24.2 cents per Keller
^half-year
^
Fund increased
over
48%
during
the fiscal year ended Oct. 31,1958,
Teet deduction of raw materials improvement of the Canadian
intd* semi-finished,
and finished
'
'
the
rise was from $20.62 to $25.66
share.
^e
A^ CoscafeUf^g.h'ShMnthan in 1957.
toess9
business
and managed by Investors"Diversified Services, Inc. rose to an
all-time
record v of ; $104,970,779,
others growth
industries," accord-
ing tovtrie report.
December 17, 1958.
share
on
the
9,881,573
average
Inc.
*
number of shares outstanding dur¬
Get the facts
on
ing the period. This compares with
net income of $2,044,948 or 25.6
cents
Massachusetts
FRANKLIN
Life Fund
CUSTODIAN
DIVIDEND
/'
'Massachusetts Life Fund is
paying
,
a.
per -share
-
r
jncohie" for the quarter
December 31, 1958.
/>
per
tal
i
*'
'
,
ending
Find
distribution of 27 cents
A
>
FUNDS
dividend, pf 25 cents
from net investmen t
share from, realized capi¬
gains.is also being made
out
now
\
i
about this series of Mutual Funds
industry.
seeking
and the
capital gains distribuboth payable Decem¬
tion
are
ber
15, 1958 to holders of
certificates- of record at
trust
the close of business
-12,1958.
.
.
December
.
Jfri&ftMtnce
Business Shares
FRANKLIN CUSTODIAN
64 Wall Street, New York 5,
FUNDS, INC.
The
Please send me, without obligation, the Prospectus and other information concerning the Franklin Custodian Funds.
Trustee
'
HAMS
AM>usa_
;
'
[
30 State Street,
Boston
A Balanced Investment
N.Y.
.
.
yCcA/ufalSCife
;
American
'■
by the Fund.
The: dividend-from income
3
engaging in
CITY.
_ZONX
STATE.
-
'
a
share on the 7,997,900 securities business from office at
number of shares out¬
305 Broadway, New York City.
standing in the fiscal year ending
Oct. 31,1957.
Shearson, Hammill Office
American
Mutual Fund held
PALM
SPRINGS,
Calif. —
79.5% of its assets in common
& Co. has
stocks on Oct. 31, 1958, as com¬ Shearson, Hammill
pared to 90.6% at the same date opened a branch office at 1108
North Palm Canyon Drive under
a year ago.
New commitments in the Fund's the direction of H. Daniel Wells.
per
average
possible growth and income through investment in Amer¬
ican
Milton Miller Opens
Milton Miller is
Company
invests
in
n
fund
portfolio > bal¬
bonds and preferred! stocks
selected for stability, and common stocks
selected for growth possibilities. anced
between
Prospectus Upon request
Lokd, Akbktt & Go.
—
-
.
'Loo
The Commercial and Financial Chronicle....
112
Thursday, December 18,1958
(2628)
-•*
i
★
-
.
'•
INDICATEGADDITiONf
—1130 U. S. Route
22, Mountainside, N. J, Underwriter
y
yV
sJ
Z-i'Z- April. 14 filed 8^34 ahares of awamomstoek. Price—At
ppr, (Smtp—v ghnT?).^Fgageadg , Fbp grin i«i.mipumtl r
cents). JPric«^$6 per -share. Proceedsb-For research, and
ABgcafei BsViiing C*nUie,
^evexdplftfentpr6gi^_^^<l^r"equipffient~ finw-woiking" Nov. 24 filed 300^)00 shares of 20^-cent cumulative cOn-f. purposes. Underwriter — Bankers Bond Co., LeBlA-'
.2>//■i'yy}./y:y
;y-y<y':;
capital. Office ---*4130 Howard Ave.^ Kensington, Md.
vertible preferred stock (par one cent) and 50,000" out- Underwriters r~ Wesley Ylaugg & Co., Kensington, -Md^
standing shares of common stock (pat: one cent);: The;;
*K-r
r/ f./.V-i/-. end Williams, Widmayer.Inc., Washington, D. C. Offerpreferred'shares are to be offered for public sale: for the:; Nov. 20 (letter: of notification) $300,06^ of 16% "sub-.;
-Expected in January.
' Tv .y ■ «-r;v <' account 'of the company and the- common: shares, will ; Ordinated convertible debentureedueJan. -1* 1969 and; "■
beoffered for the; account of a selling: stockholder.1 Price:,: 30^)00- Shares- of common- stock / (par
cents)" to 'feeit Aerosol Corp; of the South
—To be supplied by amendment;5 Preeeeds^-To .acquire3
offered in. unite ofi$100- of debentures and 10 shares of
pec. 3 (letter of notification) 1,500 shares of 6% cumu¬
stock.
new bowling centers arid increase: working capital ; (part
PriceM-$l00 "per- unit/ Proceeds—For equipping
lative convertible preferred stock.
Price—-At par ($100
to be trsed in defraying cost of acquisition; of; stock -jot ' and decorating arnew store and. acquisition/of real estate;
per share). Proceeds—For working capital and inven¬
owner of a Brooklyn (N. Y.) bowling center. .Office--;
for a new: warehouse and - workingvcapital.. Office—
tories. - Office—12121 -.Highway 70, Arlington, Term.
135 Front St., N. Y. .'Underwriter — To be named by r c/oEdward H. AltschulL President,: H^T-'Jefferson CiT-'
Underwriter—None.
■/;/ :.
■
V'
"•
amendment,.'
-i.y:>y-ry /,;' y
; cie, Martinsville, W. Va, Underw*"!fereTSeeurities. Trad-;
ft AI-DpnAimisement Co., West Point, Gay* yy,*;::;'
zing Corp., Jersey;Cityr N. J. -. v;;•• ■
• Autosurance Co. of America
Dec. 8 (letter of notification) 250 shares of class A pre¬
Oct. 16 filed 250,000 shares of common stock (par $2.50). /
Bellach—se Mining Cerpr Ltd.
ferred stock. Price—At par ($100 per share). Proceeds;
;
£;/
—For working capital. Underwriter—None.
Price—$5'per.share.. Proceeds—To. increase capital and .* Oct;. 29 filed 800,000: shares of commbiv stock. - ft-ice^--.
surplus.' Office—Atlanta, Ga. Underwriter—None. State- ; Related to the market price, on the Canadian. Stock Ex- - Allied Publishers; Inc., Portland, Ore.
t Advanced
Research Associates, Inc.
Dec. 1 filed 400jfi0G shares of common
stock (par five
—None,
■
-
~
„
.
.
,
.
•
.
.
■
Nov. 28 (letter of notification) 22,000 shares of common
stbek (par $1). Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment
Corp., Portland, Ore.
/
*
.
*
;
American Asiatic Oil Corp.
Nov. 24 filed 100,000,000 shares of capital stock. Price—Two cents per share. Proceeds—To selling stockholders.
Office—Magsays&y Building) San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Hagedorn, Inc., Manila, Republic of Philippines.
•'
American Bowling Equipment Corp.
(12/22)
Nov. 10 (letter of notification) 50,000 shares of noncumulative convertible preferred stock (par $3) and
6,000 shares of common stock (par one cent) to be
offered in units of 10 shares of
preferred stock and one
share of common stock. Price—$31 per unit. Proceeds
—For purchase of bowling equipment and working cap¬
ital. Office—135 Front St., New York, N. Y. Under¬
writer
York Securities, Inc., 80 Wall St., New York,
:-
ment effective Dec.. 3.
BankersFidelity Ufo Insurance-Co..-;
Feb. 28 filed 258,740 shares; of common stock (par $1),
of which 125,008 shares, are to be offered publicly, and
133,740 shares to employees pursuant to stock purchase *
options. Price—To public, $6 per share. Proceeds—For
expansion; and other corporate purposes. Office—At^ '
Underwriter—None.
lanta, Ga
Bankers Management Corp.
Feb, 10 filed 400,000 shares of common stock (par 25
cental Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital., Office—
change, at die time the offering is made^ Proceeds—To;
be applied over the balance of/1958 and..the ,next .three r
years as follows: for annual assessment Work on the com- pany's properties (other, than; mining claims in the Ml/
Wright area in Quebec); for: generai;prospecting: costsjf:
.and fot general administration;expenses. Office—Mcmt5-* rreal, Canada. Underwriters—Nicholas Modinos .&
:
(Washington, D. C.) in* the United States and by Forget ■'
ik Forget in Canada.
\
r •"""
•
;
1404 Main St., Houston,
Texas. Underwriter—McDonald,
Kaiser & Co., Inc. (formerly McDonald, Holman & Co.,
Inc.), New York.
•
•.
;
/
Biddeford & Saco Water Co.
Nov. 10 (letter of notification)-1,000 shares of common
stock being offered for subscription by stockholders- of
record Nov. 26 on the basis of one new share for- eacR
10 shares
par
held; rights to expire on Dec. 15. Price-r-At
($100 per share). Proceeds—For improvements and
NEW ISSUE CALENDAR
—
N. Y.
December 12
American Buyers Credit Co.
Nov. 13 filed 5,000,000
shares of common stock, of which
4,545,455 shares of this stock are to be offered for public
sale at $1.75 per share. [Shares have been issued or are
Issuable under agreements with various policy holders
In American Buyers Life Insurance Go. and American
Life Assurance Co. (both of Phoenix) permitting them
to purchase stock at $1.25 per share. Sales personnel
have been given the right to purchase stock at $1.25 *
per share up to the amount of commission they receive
on stock sales made by them.]
Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
states. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬
derwriter—None.
(Friday)
American Bowling Equipment
(York Securities, Inc.)
(N. Y.)
(Thursday)
American Enterprise Fund,
—
Gulf States Utilities Co.—
l^Equip. Trust Ctfs.
Norfolk & Western Ry
(Bids to be invited) $5,850,000
December 19
(Mallory
H,
Rhoades
Fenner
&
&
to
stockholders—underwritten
and
Common
Inc.)
Common
Co. and Merrill Lynch,
Smith) 800,000 shares
Realty & Theatre Ventures, Inc
Gulf States Utilities
December 22
(Monday)
Bonds
(Allen & Co, and W; C. Pitfield & Co., Ltd.)
ward A. Yiner& Co.,
Filmways, Inc.
$5,000,000
Colonial Sand & Stone Co., Inc.—
Inc., New York.
Denver, Colo.
capital stock (par one
cent).
Price—At market.
Proceeds—For investment.
Office—800 Security Building, Denyer, Colo.
Under¬
writer—American Growth Fund Sponsors, Inc., 800 Se¬
curity Bldg., Denver 2, Colo.
___Common
Debens. & Pfd.
23
are
January 22
(Offering
$500,000
(Kidder, Peabody & Co.) $7,051,675
to
Common
(Offering to stockholders—underwritten by The First1 Boston
January 5
shares
Pennsylvania Power & Light Co
issuable to key employees of subsidiaries en¬
dent.
American Telentail Service, Inc.
•Feb 17 filed 375,000 shares of common stock (par $1;
Price
$1 per share. Proceeds—To purchase equipment
•tnd supplies and for working capital and other corporal#
purposes
Office—Salt Lake City Utah Underwrite#1
'Amos Treat & Co., Inc., of New York. Change in Name
—Formerly United States Telemail Service, Inc.
Architects Display Buildings, Inc.
Dec. 9 (letter of notification) $225,000 of 6% 10-year
convertible subordinated debentures due Dec. 31, 1968.
JMce—At par until Dec. 31, 1958, and thereafter
plus
accrued interest (in denominations of $100, $500 and
$1,000 each). Proceeds—To pay in full mortgage judg¬
ment arid 25% settlement with the-company's creditors;
fear working
for FRASER capital and other corporate purposes.? Office
Digitized
to
be
invited)
Alabama Power
$7,000,000
Co
.....
to be invited)
May 28
■
•
^
(Thursday)
.Bonds y
^:
$20,000,000-
1
(Thursday)
Southern Electric Generating
Co!.—
Bonds
(Bids to be Invited) $25,000,000
January 7
American Mutual Investment Co., Inc.
Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first
trust notes, second trust notes and construction loans.
Company .may develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,
Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬
(Thursday)
.Bonds
(Bids
Common
v
(Wednesday)
Co
(Bids
(Offering to stockholders—to be underwritten by -The First
Boston Corp. and Drexel & Co.) 295,841 shares
titled to purchase shares issuable pursuant to option war¬
First Boston
33,000 aha res
EST) between $40,000,000 and $45,000,000
April 2
Gulf Power
(Berry & Co.) $300,000
rants issued in 1957.
The
Common /
a.m.
April 30
Common
by
Co.
145,200 shares
Carraco Oil ,Co.
....^......Common '
Humphrey & Co.)
February 4
Southern
(Monday)
aries of the company entitled to purchase shares pur¬
suant to option warrants issued in 1956; and the 23,710
are
Robinson,
(Wednesday)
Northern Insurance Co. of New York—
(Thursday);
stockholders—underwriten
and
(Bids 11
commencing Jan. 3, 1960. The
issuable to key employees of subsidi¬
..Bonds
Mobile Gas Service Corp...
(Tuesday)
Struthers & Co.)
(Tuesday )
Southern Natural Gas Co
stock options exercisable
13,880 shares
....Bonds
(Bids to be invited) $35,000,000-
Burlington Industries, Inc.———-Debentures
Corp. and Wood,
(Monday)
(Offering to stockholders—underwritten by Johnston, Lemon &
Co.; Eastman Dillon, Union Securities & Co. and
Abacus Fund) $7,500,000.
Corp.
December 31
$900,000"-
Co....
January 29
154,000 shares
(Sire Plan Portfolios, Inc.)
it American Investment Co. of Illinois
Dec. 10 filed 13,880 shares of common stock issuable
%mder stock options exercisable commencing Jan. 2,1959,
and an additional 23,710 common shares issuable under
Common
———
(S. D. Fuller & Co.)
Sire Plan of Elmsford, Inc.
December
...Common',,.
....^
& Co.)
Government Employees Variable Annuity
Life Insurance Co.....
Common
'(Glore, Forgan & Co.) 63,467 shares
American Growth Fund, Inc.,
'
Inc.
Co.,
...
Campbell Chibougamau Mines, Ltd
Oct. 36 filed 487,897 shares of common stock. Price—At
market.
Proceeds—For investment,
Distributor—Ed¬
Nov. 17 filed 1,000,000 shares of
Blyth- &
shares
(Bids to be invited) $10,000,000
„•
Common
(Offering to stockholders—to be underwritten by Merrill
Lynch, Pierce, Fenner & Smith) 203,897 shares
Inc., New York
" J
(Thursday)
January 19
$300,000
by
74,511
Co.)
(Peter Morgan
United States Freight Co.
Un¬
&
Surrey Oil & Gas Corp...
Pierce,
Common
—
Inc.)
Elworthy
January 15
$259,869
Columbia Gas System, Inc—
(Carl
(Bids to be received) $10,000,000
(Offering
(Friday)
Securities,
.
...Preferred
Pacific National Bank of San Francisco..Common,,
Colonial Aircraft Corp...
Feb. 28 filed 506,906 shares of common stock (par 200).
Price—To be supplied by amendment. Proceeds — To
discharge current liabilities and to drill ten wells.
derwriters—To be named by amendment.
$155,000
First National Bank & Trust Co., Tulsa,
Okla. v——
.^.—.Common /
(Offering to stockholders—underwritten by ■ Merrill Lynch,
!
Pierce, Fenner & Smith) $2,700,000
»!.
December 18
(Willis E. Burnside & Co.,
American-Caribbean Oil Co.
•
Corp.-_Com. & Pfd.
(Wednesday)
Natural Gas Service Co.(Kidder,
Debentures & Com.
Peabody &
and
June 25
Co., Inc.) $200,000 of
40,000 common shares
debentures
Washington Water Power Co
(Bids
Bonds:;.
be invited)
to
September 10
Bonds
(Kidder, Peabody & Co.; Blyth & Co., Inc.; White, Weld & Co.
and Laurence M. Marks & Co.) $15,000,000
(Thursday)
Mississippi Power Co
$5,000,000.
(Thursday)
-
Georgia Power Co..
(Bids
;
to be invited)
Bonds
$18,000,000
4
January 8 (Thursday)
'
C. I. T. Financial Corp
Debentures
(Dillon, Read & Co., Inc.;
Kuhn, Loeb
&
Co.
and
■
Lehman
San
Brothers)
Diego Gas & Electric Co
Debentures
Common
.(Alex. Brown & Sons) 50,000 shares
January 9
Consumers Power Co..,———
Michigan
Bell
(Monday)
Common
(Charles Plohn & Co.) $247,500
January 13 (Tuesday)
-
^
-
(Bids to
be
invited)
j
.
Co...
..Debentures
;
^.Debentues
$40,000,000
^Bends
(Bids to be Invited) $20,000,000
Moore-McCormack Lines, Inc.—^
CKuhn. Loeb & Co
and Lehman
Brothers) $24,000,000
Pennsylvania Power Co.
(Bids
$20,000,000
Preferred
Montana Power Co....
r
Mechmetal-Tronics Inc.
Telephone
(Bids to be invited)
Common
(Albion Securities Co.) $144,000
Commonwealth Edison Co.-
.
(Morgan Stanley & Co.) $15,000,000
(Friday)
Heliogen Products, Inc.
January 12
;.
■
Postponed Financing
(Bids 11:30 a.m. EST) $15,000,000
'
■.
$75,000,000
Woodward & Lothrop Inc
.
~
to be invited)- 08,000^000
Southwestern Bell Telephone Co,_._._ Jfebeaturss
(Bids to be invited) 0110^000,000
Volume
188
additions
Number 5804
.
.
The Commercial and Financial Chronicle
.
to
ford, Me.
property. Office—181
Underwriter—None.
Elm
Street, Bidde-
Big Bromley, Inc., Manchester, Vt.
filed 6,000 shares of common stock, $300,000 of
debentures due April 1, 1979, and $100,000 of 6%
notes due April 1, 1980, the common stock and deben¬
5%
be offered
in units of $250 of debentures
five common shares.
Price—Of
subsidiaries, to be used in the ordinary course of
reduce short-term borrowings incurred for
purchasing receivable and for other cor¬
business to
Dec. 9
tures to
and its
the purpose of
porate purposes.
Kuhn, Loeb &
notes, at par. Proceeds—For general corporate purposes.
Business—A ski lift and school. Underwriter—None.
Boston Gardon-Arena Corp.
Cinemark
(letter of notification) 2,150 shares of common
(par $1). Price—At-the-market (estimated at $23
per share).
Proceeds — To go to selling stockholders.
Office—North Station, Boston 14, Mass. Underwriter—
Weston W. Adams & Co., Boston, Mass.
and
Lehman
/
teridgehampton Road Races Corp.
Oct. 23 (letterrof notification) 15,000 shares of common
stock (par $1) to be offered for subscription by stock¬
,
holders of record Nov. 1, 1958 on the basis of
share
Will
or
for
be
each
four
offered to
shares
one
For
current. creditors
in payment of all
part of claims, at the rate of
one share for each $4
discharged; rights to expire about two weeks
after mailing of offer.: Price—$4 per share. Proceeds—
pay
current
creditors.
Address
—
P.
O.
Box-506,
Bridgehampton, L. I., N. Y. Underwriter—None.
^Brooks & Perkins, Inc., Detroit, Mich.
Burlington Industries. Inc. (12/23)
Dec. 2 filed $7,051,675 of outstanding 5.4% subordinated
debentures due 1974} Price—To be supplied
by amend¬
ment.
Proceeds —To selling debentureholders.
Under¬
writer—Kidder, Peabody & Co., New York. «
:
.»■
.
Campbell Chibougamau Mines, Ltd. <12/22-26)
Nov. 12 filed $5,000,000 of 6% first mortgage convertible
sinking fund bonds due 1968. Price—To be supplied by
amendment.
Proceeds—To repay bank
loans,, and the
remainder will be used for corporate
purposes, including
commencement of development of Henderson ore
body.
Office—55 Yonge St., Toronto, Ontario, Canada. Under¬
writers—Allen & Co., New York, and W. C. Pitfield &
Co., Ltd., Montreal, Quebec, Canada.
(1/5)
Nov. 10 (letter of notification) 200,000 shares of common
stock. Price—$1.50 per share. Proceeds — For
general
corporate purposes.
York.
Cardinal
Underwriter
Instrumentation
—
Corp.
Berry & Co., New
Productions, Inc.
notification) 300,000 shares of common
(par 10 cents). Price—$1 per share.- Proceeds—
working capitaL Office — 937 Acequia Madre Rd.,
Fe, N. M.
Underwriter—Watson & Co., Santia Fe. :
,
Clute
■
/,,; , V--: w
,
A'. >
/
Corp.
Aug. 21 (letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—To
pay additional costs of construction; and for retirement
of obligations and working capitaL Office — c/o John
Harlan Lowell, 2200 Kenton,
Aurora, Colo. Underwriter
—Lowell. Murphy & Co., Inc., Denver, Colo.
stock (par one cent).
Colonial Aircraft
Oct.
★ Eldon Miller, inc., Iowa City, Iowa
8 (letter of notification) 30,000 shares of commpd •
(par $1). Price —$6 per share. Proceeds—Foir,
working capital and operating equipment, Underwriterr
Dec.
—None.
'•*
V'. 7
Corp., Sanford, Me.
(12/19)
346,492 shares of common stock (par 10
Price—75 cents per share. Proceeds—To reduce
loans, make certain capital improvements and for work-'
irig capitaL
York..
'
Underwriter—Mallory Securities, Inc., New
•
•
■
; " •
.
•
•
.
Epsco, Inc.
Nov. 5 (letter of notification) 2,200 shares of common
stock (no par).
Price—At the market. Proceeds—To a,
selling stockholder.
Office —588 Commonwealth Ave., *
Boston, Mass. Underwriter—Hayden, Stone & Co., Bos- f
ton, Mass. No public offer planned.
,
exercise of warrants at an adjusted price of $6,912
per share. Price—To public, to be supplied by amend¬
ment.
Proceeds—From warrants, to be added to the
general funds of the company.
Underwriter — Glore,
Forgan & Co., New York.
/
„
,
Columbia Gas
Ethodont
Feb.
Laboratories, Berkeley, Calif.
20 filed 300,000
At par
expense
tion.
upon
•
Epsco, Inc.
•••'
'•
Nov. 5 (letter of notification) 7,500 shares of common •
stock (no par). Price—$24 per share. Proceeds—To sell* *
ing stockholders. Office—588 Commonwealth Ave., Boa*!
ton, Mass. Underwriter—W. C. Langley & Co., Boston^'
Mass. No public offer planned.
! , : •
/ / /'C
filed
8
cents).
shares of common stock. Price—^ /
($5 per share). Proceeds—To cover operating
during the development period of the corpora-*'
Underwriter—None.
Federated
Nov.
17
Finance
•-?
'"//•
Co.
senior subordinated debentures.
Price—At par (in de¬
each). Proceeds — For working"
capital, to make loans, etc. Office—2104 "O" St., Lin-'
coin, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha, Neb.
Nov. 21 filed 800,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds
$10).
—
To
selling
stockholders.
Underwriters — Carl M. Loeb,
Rhoades & Co., Merrill Lynch, Pierce, Fenner & Smith
and 6even other firms, all of New York. - C
I
* Comfort-Craft, Inc.
(letter of notification) $44,700 of 8% debentures
20, 1975, to be sold in units. Price—$100 per
_
(letter of notification) $300,000 of 10-year 6%
nominations of $1,000
System, Inc. (12/19)
-
^
;
/
Filmways, Inc. (12/22-26)
Nov.
28
filed
154,000
shares of
■
common
stock
(par 25
cents), of which 14,000 shares will be sold for the ac-,
a selling stockholder.
Price—To be supplied by
Proceeds—For expansion program. Officer
—18 East 50th Street, New York, N. Y. Underwriter—S.
D. Fuller & Co., New York.
count of
amendment.
Dec. 17
due Dec,
unit.
Proceeds—To be used for
new
equipment and for
working capitaL Office—3801 N. W. 53rd St., Hialeah,
Fla. Underwriter—None.
.£ ,t
■.
.
CommerceOil Refining Corp.
•
Dec. 16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares <"<f common stock to be
offered in units as follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures M**d nine shares of stock
Price—To be supplied by amendment. Proceeds — To
construct refinery. Underwriter—Lehman
York. Offering—Indefinite.
Brothers, New
stock.
mon
Nov. 4 letter of notification) 240,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For
pay¬
ceeds—For
ment of
Lake
4201 Redwood
Price—At
•
First Lumber
Corp.
".i_
(letter of notification) 50,000 shares of class A,
stock (par $2). Price—$6 per share. Proceeds-r-.
To capitalize
several wholly-owned subsidiaries and;
for general working capitaL Office—.1510 Jericho Turn¬
pike, New Hyde Park, N. Y. Underwriter—Singer, Bean
& Mackie, Inc., New York, N. Y. Offering — Not expect¬
Dec.
3
common
ed until after the first of
*
January.
Florida
Builders, Inc.
Dec. 1 filed $4,000,000 of 6% 15-year sinking fund sub-*,
ordinated debentures and 40,000 shares of common stocky
to be offered in units of $100 principal amount of deben¬
one share of common stock.
Price — $110 per
Proceeds—For purchase and development of sub¬
division land, including shopping site; for new 'equip¬
tures and
unit.
Commercial Investors Corp.
Nov. 28 (letter of notification) 900,000
(12/15)
off current notes payable to bank and to in¬
working capitaL Office — 950 Bridgeport Ave.,
Milford, Conn. Underwriter—None;
pay
crease
stock
,
Colonial Sand & Stone Co., Inc. (12/22)
Nov. 26 filed 63,467 shares of common stock to be issued
Nov, 26 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
complete the company's commitment to purchase at par
5,000 shares of the $100 par common stock of Alabama
Metallurgical Corp.; and the balance for general cor¬
porate purposes. Business—Rolling and fabrication of
magnesium and magnesium alloys, etc. Underwriter—
Watting, Lerchen & Co., Detroit, Mich. Offering—Ex¬
pected this week. * ",
-
^ Carraco Oil Co., Ada, Okla.
New
.
.
new
shares
of claims
To
;
II
N.M.
•
held; unsubscribed
of
all
/
—To
stock
stock
,
Brothers,
-
June 30 (letter of
Santa
Nov. 24
Underwriter—Dillon, Read & Co. Inc.,
Co.
"
York.
and
units, $500 each, and of
liS*
(2629)
shares of
(10 cents per share).
com¬
ment
and
project site' facilities; for financing ex-:
pansion program; and for liquidation of bank loans and
other corporate purposes.
Office—700 43rd St., South,
St. Petersburg, Fla. Underwriter—None.
Salt Lake
notes, capital additions and inventory. Office—
Ave., Los Angeles 6B, Calif. Underwriter
—Myron A. Lomasney & Co., New York.
Carolina Telephone & Telegraph Co.
Nov. 17 filed 58,773 shares of common capital stock
(par
$100) being offered for subscription to stockholders of
record Dec. 4, 1958, in the ratio of one new share for
investment.
par
Office—450
Pro¬
Main
St., Salt
City, Utah. Underwriter—Earl J. Knudson & Co.,
City, Utah.
Consumers Cooperative
Kansas City, Mo.
,•
So.
Association,
,
Oct.
29
filed
$6,000,000 of 5V2% 25-year subordinated
certificates of indebtedness, and 60,000 shares o£ 5 V2%
on
preferred stock (cumulative to extent earned before
patronage refunds). Price—For certificates at $100 per
unit; and the preferred stock at $25 per share. Proceeds
Nov. 17 (letter of notification) 300,000 shares of
of maturing certificates of indebted¬
redemptions on request of certificates of indebted¬
ness prior to maturity and of 5^2% preferred
stock; the
possible improvement and expansion of present facili¬
ties; and the acquisition of manufacturing plants and
crude oil properties if favorable opportunities therefore
each five shares then
held; rights to expire
Dec. 29.
Price—$125 per share. Proceeds—To reduce short-term
bank loans. Underwriter—None.
-
stock
Price—$1
(par 25 cents).
per
share.
common
Proceeds—
For working capital.
Address—P. O. Box 1849, 3720 E.
32nd Street, Yuma, Ariz. Underwriter—L. A. Huey
Co.,
Denver, Colo.
'
*:
Charles Town Racing
cents per share.
Proceeds — For construction of racing
plant and acquisition of equipment. Office—Charlestown, W. Va. Underwriter—None. Statement effective
Checker Motors Corp., Kalamazoo, Mich.
Nov. 7 filed 133,112 shares of common stock (par
$1.25)
being offered for subscription by holders of outstanding
common stock of record Dec.
4, 1958 at the rate of one
for
each
seven
shares
then
held
(with
an
oversubscription privilege); rights to expire on Dec. 23.
Price—$16 per share. Proceeds—For exercise by com¬
pany of its option to purchase 19 presses and accessories
leased
ital.
Underwriter—None.
from Checker Taxi Co. Inc. and for working
cap¬
Business—Manufactures and sells Checker taxicabs.
Underwriter—None.
Chamical Fire A Casualty Insurance Co.
Nov. 24 filed 210,000 shares of class "A" voting common
stock and 210,000 warrants to subscribe to a like number
of shares of class "B" non-voting common stock. Pur¬
chasers of the class "A"
shares will receive with each
share purchased a warrant granting the right to purchase
for $10 per share one shares of class "B" stock for a
(1/8)
:
;
Nov. 25 filed 2,138,500
shares of common stock (par $1K
share. Proceeds—To pay short-term,
loans and for completing company's Port Development.
Plan and rest added to general funds.
Office — Fort
Price—$1.25
per
Pierce, Fla. Underwriter—Frank B. Bateman, Ltd., Palm
Beach, Fla.
General
Aero &
Electronics Corp.
Electronics Corp., additional working capital
Co.
Underwriter — Morgan
Offering—Postponed indef¬
5
Research Fund, Inc., St. Louis, Mo.
100,000 shares of capital stock, (par one
Price—At market.
Proceeds—For investment.
filed
Underwriter
Louis.
—
Counselors
Research
Sales
Corp.,
St
Robert H. Green is President.
★ Crown Central Petroleum Corp.
Nov. 26 (letter of notification) an undetermined num¬
ber of shares of common stock (par $5) to be offered
to employees under Employees Savings Plan, through
payroll deductions.
purchase stock
Price
—
At the market.
Proceeds
—
To
for employees.
Office — American
Building, Baltimore, Md. Underwriter—None.
•
-
Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds — For repayment of loan; purchase of plant and
office equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
1740 Broadway, Denver, Colo. Underwriter—L. A.
Huey,
Denver, Colo.
Person Mines Ltd.
Price—$1
share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.
Dec. 16 filed $75,000,000 of debentures due Jan. 1, 1979.
be supplied by amendment.
Proceeds—To
Dec.
provide additional, working funds for. the corporation
common
Edgcomb Steel of New England, Inc.
5 (letter of notification) 30,000 shares of class A
stock (par $5). Price—$10 per share. Proceeds
and other
purposes. Underwriter—Willis E. Burnside A
,Inc\, New York. Statement withdrawn a week ago.
corporate
Counselors
Feb.
Price—To
\
fort Pierce Port & Terminal Co.
provement of service facilities.
per
Underwriter—None.
—
Stanley & Co., New York.
initely.
June 5 filed 350,000 shares of common stock.
★ C. I. T. Financial Corp.
Underwriter
Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay short-term bank loans and for expansion and im¬
sion to write insurance.
phis, Tenn.
6, Ore.
York, N. Y.
e
Power Co.
period of 18 months after the
company receives permis¬
Price—$10 per share. Proceeds
—For working capital. Office—2807 Sterick
Bldg., Mem¬
land
of common
Proceeds—
Ave., Port¬
Ross Securities Inc., New
Sept. 29 filed 500,000 shares of common stock (par 19
cents), of which 100,000 shares are to be sold for the
account of selling stockholders. Price—$2.25 per share.
Proceeds—For acquisition of stock of National Missile A
cent).
Oct. 23.
share
arise.
Consumers
Association, Inc.
Sept 9 filed 4,000,000 shares of common stock (par 10
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the
remaining 470,000 shares have been issued to nine per¬
sons, who may sell such shares at the market. Price—60
new
—For retirement
ness,
Camex of Arizona, Inc.
Fluorspar Corp. of America
Oct. 14 (letter of notification) 133,333 shares
stock (par 25 cents). Price—$2.25 per share.
For mining expenses. Office—4334 S. E. 74th
General Alloys Co.
Nov. 17 (letter of
stock (par $1) of
notification) 45,250 shares of common
which 16,900 shares are to be offered
employees and the remainder to the public.
PriceTo employees, $1.1805 per share.
Proceeds—To purchase
and install machinery and equipment.
Office—367-405'
to
West First
Prescott &
St., Boston, Mass.
Co., Boston, Mass.
Underwriter—William S.
*
General Aniline A Film Corp., New York
Jan. 14,1957 filed 426,988 shares of common A
stock (no
par) and 1,537,500 shares of common B stock (par $1>
Proceeds—To the Attorney General of the United States*
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Boo;
ton
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman*
Brothers, and Glore, Forgan A Co. (jointly). Bids—Ho6
been scheduled to be received up to 3:45 pjn. (EDT) set.
May 13 at Boom 654, 101 Indiana Ave., N. W., Washing¬
ton 25. D. C.. but bidding has been
postponed.
^ General Telephone Co. of California
Dec. 16 filed 500,000 shares of 5% cumulative preferred
stock (par $20). Price—To be supplied by amendment.
Proceeds—To be used for property additions and intr
provements and to discharge in part short-term bank
loans. Underwriters—Paine, Webber, Jackson & Curtis,
of New York and Boston, Mass., and Mitchum, Jones &
Templeton, Los Angeles, Calif, (not under a firm comr
mitment basis).
.
'
:
-
Continued
on
page
;
>
lit
114
The Commercial and Financial Chronicle
(2630)
Continued from page
■
f
"
'
Insurance
,
writer—None.
'
Variable Annuity Life
Heliogen Products, Inc. (1/9)
(letter of notification) 28,800 shares of qpmmon
(par $1).
Price—$5 per share.
Proceeds—For ;
(1/20)
Co.
penditures
Oct. 22
shares of commcal stock (par $1)
be offered by company on or about Jan. 20, 1959 viz:
Nov. 13 filed 2,500,000
payment of past due accounts and loans and general:
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11 Broadway, New York 4, N. Y. %
•'/
(1) to holders of common stock (par $4) of Government
Employees Insurance Co., on the basis of one warrant per
share of stock held on Jan. 6, 1959 (1,334,570 shares are
now outstanding); (2) to holders of common stock (par
6, 1959 (216,429 shares are now outstanding); and (3) to
holders of common stock (par $5) of Government Em¬
ployees Corp., on the basis of Vz warrant per share of
stock held on Jan. 6,1959 (as of Sept. 30, 1958 there were
143,127 shares of stock outstanding and $614,360 of 5%
convertible capital debentures due 1967, convertible into
shares of common at $28.0374 per share.
If all these
debentures were converted into common stock prior to
the record date, a total of 164,724 common shares would
be outstanding. Warrants will expire on Feb. 10, 1959.
Price—$3 per share. Proceeds—For capital and surplus.
Office — Government
Employees Insurance Building,
Washington, D. C. Underwriters — Johnston, Lemon &
Co., Washington, D. C.; Eastman Dillon, Union Securities
& Co., New York; and Abacus Fund, Boston, Mass.
(
held
on
Office
927
—
expire Dec. 3L
Proceeds—To selling stockholder.
Street, Wilmington, Del. Under-
•
standing 5%. convertibie; subordinated income notes due*
1967 of the Calidyne- Con ine., a subsidiary. -The corn^ ?
notes from
shares of common stock (par $5)
80% of the outstanding Sunrise shares by Dec. 31. State¬
ment became effective Dec. 10.
&
Co., Decatur, Ill.j Fusz-Schmelzle
&
>.
;
.
Michigan Electric Co.w;.
Sept. 26 filed $20,000,000 of first mortgage; bonds due
Nov. 1, 1988. Proceeds—To retire bank loans used for
construction program. Underwriter—To-be determined
by competitive bidding. Probable bidders: Halsey, Stuart 1
& Co. Inc.; Eastman Dillon, Union Securities & Co.;* The
First Boston Corp.; Harriman Ripley &Co. Inc. Offer¬
ing—Date indefinite.
both of Washington,
per
;
-
,
,
>
^
ment effective Nov. 18.
purposes.
Underwriter—None.
corporate
filed
(by amendment) an additional 5,000,000
shares of capital stock (par one cent). Price—At marKet.
investment.
'
r
.
•
Guaranty Life Insurance Co. of America
14 filed 88,740 shares of class A common capital
Nov.
stock (par $1.80). Price—$5.35 per share. Proceeds—To
increase capital and surplus.
Office—815 15th Street,
N.
W., Washington. D. C.
Underwriter—None.
★ Gulf States Utilities Co.
(1/19)
$10,000,000 of first mortgage bonds due
1989. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner & Smith and White Weld & Co. (jointly); Stone &
Dec.
11
filed
"JVebster Securities Corp.; and Salomon Bros. & Hutzler
and
Eastman
Dillon, Union Securities & Co.
Bids—Expected to be received on Jan. 19.
(jointly).
•
filed
28
"
Hamilton Oil A Gas Corp.
Co.,
(N. Y.)
(par 25
cents). Price—$2 per share. Proceeds—To acquire funds
to test drill, explore, and develop oil and gas properties.
Underwriter—None.
(The registration includes an ad¬
ditional 568,000 common shares
issuable upon exercise
1,176,000 options rights previously offered (Oct. 19,
1957), which rights entitle the original purchaser
thereof to purchase one-half share of stock at 50 cents
per share at the expiration of 13 months after com¬
of
offering.]
Maverhttt Gas Co* Haverhill, Mass.
Nov. 12 (letter of notification) 12,285 shares of
capital
stock (par $10) being offered for subscription
by stock¬
holders of record
on Dec. 3, 1958 on the basis of one new
share for each 10 shares held (with an
oversubscription
privilege); rights to expire on Dec. 22. Price—$20 per
share.
Proceeds—To repay bank loans. Underwriter—
None.
City Life Co., Hartford, Conn.
(letter of notification) 15,750 shares of capital
stock (par $10) being offered for subscription by stock¬
holders of record Nov. 28, 1958, on a one-for-two basis;
rights to expire on Dec. 26. Price—$17.50 per share. Pro-*
ceeds
To increase capital and surplus. Underwriters—
Putnam & Co. and E. T. Andrews & Co., both of Hart¬
—
>
HoartSand Development
Corp.
shares of non¬
voting convertible preference stock (par $12) to be
offered for subscription by stockholders on the basis
of one share of convertible
?!L
1®W»
on
or
about Nov. 1,
Stockholders will have 45 days in winch to exer¬
Price —At par. Proceeds—To repay
acquisition of investments, and for general pur¬
cise the righto.
pebts,
preference stock for each
common^ stock held
stodt. Price—$1
share. Proceeds —• For:the acquisition of properties'
under option and for various geological expenses, test'
drilling, purchase -of equipment, and other similar pur- f
poses.
Offices—Wilmington, Del., and Emporium, Pa.f
M. C. A. Credit Co., Inc.,
Oct. 6 filed rlOO,000
it Mammoth Mountain Inn Corp.
(letter::of notification).70,000 shares of common!
Dec, 10
stock (par
$5).
Price—$5.50
used to build arid, operate
—Suite
204,
per
share. Proceeds—To be
and all-year resort hotel. Office
8907 Wilshire Blvd., Beverly Hills,
Underwriter—None,
i
^
_
Calif.4
*
4
^
(leltter"Of/Notification) 5,454 shares of common'
Mankato Citizens Telephone Co.
Nov.
19
(no par) to be offered for subscription by stock-"
on the basis of one new share for each seven,
stock
holders
shares
Price—'
held; unsubscribed shares to employees.
share.-"Prdc^ds^-To complete dial -conversion1
prograrii;
Office^-315 South Second St., Mankato, Minn.$55 per
^ */*.-
Milwaukee, Wisi;/':":
10 filed 501,500 spares of common stock (par $10);
offered in exchange ior rill the issued and outstand^.
Marine Cdrp*
shares of common
stock
(par two cents). Price—$4.50 per share. Proceeds
capital account and paid-in surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise Boulevard, Ft.
Nov.
to be
—For
Israel
Underwriter—None.
Investors Corp.
^
shares of common stock. Price—$100
per share. Proceeds—For investment. Office—19 Rector
Street, New York, N. Y. Underwriter-^None.
:
: "
Itemco
220,000 outomndirig'shares of Marine National Ex¬
change Bdrite Of Milwaukee,; $20 par;'(2) 22 shares for;
each of the 1,000 outstanding shares of Cudahy Statethe
'
Dec. 1 filed 46,260
'.w 7
Inc.
Nov. 28
(letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To
acquire machinery and equipment and additional space
for test laboratories; and for working capital. Office—
4 Manhasset Ave., Port Washington, L. I., N. Y. Under¬
writer
B. Fennekohl & Co., 205 East 85th St., New
York, N. Y.
" •"
" ;
'
'
Bank, Cudrihy; Wis?/^l0O--par; (3> three Glares for each
of the 7,500 tjUtStendin g' shares of Holton State Bank^
Milwaukee, ^O/^ar; rind (4) 17 shares for each of the,
1,000 outstanding shares of "South Milwaukee Bank,;
South MilwritikCey $100 par.1 Each of the exchange pro-;
;ccmditiorifed :"(among other things) upon ex-i
changeri:;-lieldgin(toae;WiMi' 'the holders of not less than?
80% of the rtock of the bank with respect to which the;
proposal-is made; 'Tbe offen will terminate on. Dec.. 31,;
1958.
Statenteht efffeetive-Decv.8..
V'
'A
posals is
..
.
,
it Jewel Tea Company
'-1;.. r
Dec. 10 (letter of notification), 3,333 /shares of common
stock (par $1) to be sold to ^employees of the company
and its subsidiaries under the terms; of a stock purchase
plan. Price—At an estimated price of $88 per share on
the basis of price on New York Stock Exchange on Nov.
28, 1958.
Proceeds
—
Underwriter—None,.
To be added to working capital;,
/;V -„'!/? 'V:-/
it Maryland Life lnsPrance Co. of Baltimore
Nov.
stock
(letter of notification) 10,000/shares of class A
common
stock (par $1.50). Price—$10 per share. Pro¬
ceeds—For purchase of modern automatic filling equip¬
Dec.
share
Underwriter—None.
'
V
Kennesaw Life & Accident Insurance Co.
(letter of notification) 59,393. shares of common
(par $1) to be offered to stockholders of record.
Nov. 17, 1958, on a one-for-four basis? Price — $2.25 per
share. Proceeds—To increase capital and surplus. Office
St., Marietta, Ga. Underwriter—RobinsonHumphrey Co., Atlanta, Ga.
Laugtilin Alloy Steel Co* Inc.
Aug. 28 filed $500,000 of 6% subordinated callable de¬
bentures due June 30,1968, and 150,000 shares of common
stock (par 10 cents) to be offered in units of $100 of
—317 Atlanta
fer
in the .ratio of onei
Rights expire on Dec>
«ac¥' 10 "Shares Neld?
the public. Price—$40.
Proceeds — For capital and surplus of thei
^Office-^10 South -Street, Baltimore, Md. Un-;
29, 1958;; Unsubscribed' shares to
per
share;*-
company.
derwriter—None;"
Mechmetal-Tronics
5
ment, and for working capital in-order to pay accounts
payable. Office — 85 Eighteenth Ave.; Paterson, N. J.
■'
;
26-(tett^^eLf-riOtification) 46:,954 shares of capital
( parv$2)"-to1te offered for. Subscribers by stock-"
holderk *bfdreebr&!;on 'Dec.' 8,- 1958
★ Jet-Aer Corp.
stock
Qtf; 23 (latter of notification)" 22,820
-1
■„
per
Underwritdi^None/•
v
Nov. 26
t
Sept. 29 filed? 360;000 shares of common
Insurance
Nov. 26
Investment Corp. of Florida ;
Oct. 9 (letter of notification) 55,555
r
' •'r
y
Miami, Fla.
shares of common stock. Price—$5
per share. Proceeds—To reduce current indebtedness to'
Walter E. Heller & Co.
Underwriter—Plymouth Bond*
& Share Corp., Miami, Fla.
\
*
"
Un-
150,000 shares of common stock
*,/.
^
Underwriter—None.
D. C., on a best efforts basis. State¬
ford, Conn.
New York, N. Y. Underwriter—None.
LuHoc;Mining Corp.
one
—
Oct 22 filed 1,000,000 shares of common stock
way,
7
and
(par 10,
;ents). Price—To be related to the market price. Pro¬
ceeds—For working capital and to enlarge research and'
development department. Underwriter — S. D. Fuller A
Co., New York. Offering—Being held in abeyance.
Teb.
Lauderdale, Fla.
★ Gulf States Utilities Co. (1/13)
Dec. 11 filed 100,000 shares of cumulative preferred
stock (par $100).
Proceeds—To repay bank loans and
for construction program.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Lee
Higginson Corp; Stone & Webster Securities Corp.;
Kuhn, Loeb & Co. and Salomon Bros. & Hutzler (joint¬
ly); Lehman Brothers and Equitable Securities Corp.
(jointly); Glore, Forgan & Co. and W. C. Langley & Co.
(jointly). Bids—Expected to be received on Jan. 13.
mencement of such
July 24 filed 600,000 shares of common stock (par
cent). Price—$1 per share. Proceeds—To develop
operate graphite and mica properties in Alabama.
lerwriters—Dearborn & Co. and Carr-Rigdom &
Industro Transistor Corp.
it Group Securities, Inc., Jersey City, N. J.
Proceeds—For
Lowenstein
stock (par
Price—$8
10
'■>'')»■'*Tt
v
(M.) & Sons, Inc. '
■' 4'r- r
"(letter of notification) 3,225 shares of common !
$1); being offered on a basis of 1% shares in
exchange for-one .share of capital stock uf Wamsutta I
Mills. The offer expires on Dec. 19. Office—1430 Broad-'*
"
Nov.
Gray Manufacturing Co., Hartford, Conn.
Oct. 28 filed 90,218 shares of capital stock (par $5) be¬
ing offered for subscription by common stockholders of
record Nov. 25, 1958 at the rate of one new share for
each four shares held (rights to expire on Dec.; 22).
general
'*priCe equal to 100% of their prin- V
Los
Co., Inc., St. Louis, Mo., and Ellis, Holyoke & Co., Lin¬
v
Proceeds—For
ai/ a
cipal am6iint!cStatemdrit'*effective Dec; 5.
Underwriter—None.
Industrial Minerals Corp., Washington, D. C.
share.
face value; Calidyim/
purdhase at
to
those stockholders \vho desire to sell their*
notes for va^t,
Indiana &
being offered in exchange for outstanding common stock
of Sunrise Supermarkets Corp. at the rate of one share
of Grand Union stock for each 2.409 shares of Sunrise
stock. The offer is subject to acceptance by at least
Dec.
will offer
pany
coln, Neb.
Grand Union Co.
Oct. 29 filed 187,534
v
Ling Electronics, Inc.vzyCtfKY'Y-K-iCt,Oct. 28 £iledn$922*500
subordinated convertible
debentures diie ;Dec.~ -1, 19*^), • to • be • offered^ in exchanged
on
the basis oT equMc prmcipal araaunts for ' thd out- ;
Home-Stake Production Co., Tulsa, Okla.
writers—Tabor
'
writer—None.
t
first Maine
#
'
Nov. 17, 1958; rights to
Market
.
shares qf capital stock (par $1)
Proceeds—To acquire stock control d •youi^ "aggn^vle: arid expanding life and other in- :
mrance companies and related companies and then to ;
iperate suth; companies Wshbsidiaries:" Underwriter— r
r
of common stock
Grain Elevator stock for each share of National Alfalfa
Price—$2 per share.
Socui
Angeles Drug Co.
Oct. 3 filed 50;000. shares :of ^capital «tock, to be offered1
Honeggers' A Co., Inc., Fairbury,<lll.
;v
ior subscription shy^jteDlders of .outstanding atock, on a "
Nov. 7 filed 19,000 shares of common stoekc(no par); of.;,
which 18,000 shares will be sold for.;comparlyandl,000
pro rata bastoi -iAny shares not So sold Will vbe offered on v
an exchangOd3asis« to hold^s of outstanding.15% sinking;
shares for a selling stockholder." Price—^$30.50 per share. >
Business—Manufactures and sells formula feeds for live- J fund debentures. Pr|CfHr$ao;50 per share to' stockholders; >
$11.50 to*pid)licf; Proceeds—$328,300 to redeem outstandstock, animal and poultry, farm animal shelters and re¬
lated equipment and supplies^ Proceeds — For; working ; ing 5% sinking :fund.debentures and $1^^200 to reduce I
short term ;bank'4oans.:<Office—Los Angeles^ Calif. Un-1
capital and general corporate purposes, including the fi¬
derwritcr—Quhtcy. Cass -Associaites, Lt>s Angeles, Calif, r
nancing of increased inventory and receivables." Under¬
(par 10 cents). National Alfalfa Dehydrating & Milling
Co* holder of the 100,000 common shares, proposes to
offer to its stockholders preferential warrants to sub¬
scribe to 98,750 shares of Grain Elevator stock on the
basis of one warrant to purchase one-eighth share of
common
InsunmCe
frice—$5 perT$h^ire.
116,667 shares of common stock (par $5).
Price—$6 per share. Proceeds—For working capital and
general corporate purposes.
Office2202 Philtower
Grain Elevator Warehouse Co.
Nov. 3 filed 100,000 outstanding shares
Life
Nov. 5 filed
Bldg., Tulsa, Okla.
company's South San*
Offices—Las •
latter
Earch 2$.
Hoagland A Dodge Drilling Co., Inc. ,
/une 12 filed 27,000 shares of capital stock. Price—$16
per share.
Proceeds—To be used jh part for the exploration of mines and development and operation of
aiines and in payment of indebtedness. Office—Tucson,
Ariz. Underwriter—None.
.-V.
■
acquiring
in
Vegas, Nev.; and- SOuth*San Francisco; Calif. Underwriter >.
—Sam WatsoretC©** Inc., Trittte> Rock,Ark., on a best ;
efforts basis;*c*iv. ^• ' * *
Highway Trailer Industries, Inc.;: \ V" " ■
■»'
Nov. 24 filed 473,000 outstanding/shares > of;common :
stock (par 25 cents). Price—At prices generally prevail¬
ing on the American Stock Exchange.>' Proceeds — To
selling stockholders. Office—-250 Park Ayeitue,: N. Y;
Underwriter—None.
/■'
$1J>0) of Government Employees Life Insurance Co., on
the basis of 1 Vz warrants per share of stock held on Jan.
*
Francisco foundry and Jor working capital.
stock
to
Price—$100 per unit.
Proceeds—Together with a $175,000 mortgage loan from :
the American Brake Shoe Co., will be used to meet ex¬
\'
>•
Thursday, December 18, 1958
.
debentures and 30 common shares.
Address—P. O. Box-348, Albany, N. Y. Under¬
poses.
113
,
Government Employees
•
.
"
4
..
r
-
-
lnt.
(1/12)
-
~
r
/ /
.
(lfetter Of notification) 90,000 shares of common!
cents)? Price—$2.75i)er share. ProceedsTor payment'on contract to purchase invention; research;
and development expenses; qfTd working capital. Office;
—c/o Virgil *F.-Every, 20 Efexington Avenue, Rochelte
Park, N.-J.^ Underwriter — Charles Plohn & Co., New
Nov. 24
stock (par.20
York, N. Y.
it Mercantile Acdoptaaice Corp. of California • ' * 'i
11 (tetter of notification) 965 shares of 5% first
Dec.
.
preferred stock.* Price—At par $20 (per share). Proceed*
—For ^vprkirig capital. Gffice—333 Montgomery St., San
Franicsco, Calif.
Underwriter
Corp., San Francisco,'Calif;;-
Guardian Securities
—
/
.
;
-
.
.
Merchants Petroleum
Oct, 8
stock
Co.
.
(tetter of notification) .159,395 shares of common
being offered for subscription by
(par 25'cents)
Volume
188
Number 5804
stockholders of record Nov.
share
new
for
each
five
.
.
The Commercial and Financial Chronicle
.
24, 1958
the basis of
on
one
new
turboprop and turbojet aircraft and 'related spare
parts; equipment and ground facilities, and for other
corporate purposes.
Underwriter — The First Boston
shares
held; rights to expire
oversubscription privilege); Price
Jan.
15, 1959 (with an
—$1.40 per share. Proceeds
(2004p lis
To reduce
bank loan;
working capital and for general corporate
Office—017 W. 7th Street, Los Angeles, Calif
Corp., New York.
-—
Underwriter—None.
.
..
•
Northwest Gas & Oil Exploration Co.
Aug.; 22 (letter of notification) 300,000 shares of common
stock (par 10 cents/
Price—$1 per share. Proceeds—
For acquisition of additional gas and oil interests and
/.// '///•/
•.
Mid-Atlantic Marina, Inc., Baltimore, Md.
Oct. 28 (letter of notification) 60,000 shares of 7% pre¬
«
ferred stock
(par $3.50). Price-—$5
For construction of
marina.
corporate
share. Proceeds—
per
Office
administrative
expenses.
Office—150
Broad¬
New York 38, N. Y. Underwriter — Greenfield &
Co., Inc., New York 5, N. Y. Statement effective Dec. 15.
way,
Room 104, Old
Town Bank BIdg., Baltimore 2, Md. Underwriter—Mary¬
/' Nylonet Corp. -'/
land Securities Co.. Baltimore, Md/'/
/.X Nov. 24 (letter of
notification) 600,000 shares of common
'^.Miles- Laboratories, Inc.
stock (par 10 cents). Price—50 cents
;
44J/
per share. Proceeds
Nov. 14 filed $6,035,400 of convertible - subordinated de¬
—For working capital. Office—20th
Avo.,N. W. 75th St.,
bentures due 1978, being offered for subscription by com¬
Miami, Fla.* Underwriter—Cosby & Co., Clearwater, Fla.
mon stockholders of record Dec.
4, 1958 in the ratio of - •;/• Oak
Ridge, Inc.
V
■
/ ^
$100 of debentures for each. 20 commop shares held;
Sept. 4 (letter of notification) 100,000 shares of common
rights wilLexpire on Dec. 19, 1958. Price—100% of prin¬
stock (par $1). Price — $3 per share. Proceeds — For
cipal amount. ; Proceeds—For. expansion program and
working capital.
Office—11 Flamingo Plaza, Hialeah,
general corporate purposes. Underwriter —/The First
Fla.
Underwriter —Henry &
Associates, Inc., 11 Fla¬
Boston Corp., New York.;.
///. '/^ r//:/ -///* mingo Plaza, Hialeah, Fla.
a
—
★ Military Publishing Institute, Inci
(letter of notification) 125,000 shares of
Dec. 9
Odlin
common
Nov.
12
Industries, Inc.
filed
$250,000 of 5Vz% convertible debentures^
250,000 shares of common stock (par 10 cents). Price
general corporate: purposes, and working; capital.
—Debentures at 100% and stock at $3 per share. Pro¬
Office—55 West 42nd Street/ New Yrirk 36, N. Y. Under-) '
ceeds—To purchase a textile mill,
machinery, equipment
writer—C. H; Abraham & Go.; Inc.) 565 Fifth Ave., New
and raw/materials, and to
provide working capitaL Office
York 17, n.
—375 Park
stock
For
(par
5
cents).
Price—$2
share.
per
Proceeds—
'//
;
Montana Power Co.
'
July 1 filed $20,060,000 of first mortgage bonds due 1988
Proceeds
Together with; other funds, to be used to
,r
Ave., New York, N. Y. Underwriter—Harris
Securities Corp., New York, N. Y., on a best efforts basis.
;
Oil,Gas & Minerals, Inc.
—
Nov. 16 (letterXof notification) 116,000 shares of common
stock (par 35 cents)/ Price—$1
$15,500,000 in bank loans arid to carry on the
per share.
Proceeds—
company's; construction program through 1959. Under- i.' For
development of oil and gas properties.
Office—513
writer—To be determined by competitive bidding. Prob¬
International Trade Mart, New Orleans 12, La.
Under¬
able bidders :(HaIsey, Stuart & Co. Inc.; Lehriian Bros.)
writer—Assets Investment Co.,
Inc., New Orleans, La.
Merrill Lynch, Pierce, Fenner & Smith, and Stone &
Oppenheimer Fund, Inc.
Webster Securities. Corp. (jointly); White, Weld & Co.;
Dec. 5 filed 100,000 shares of
capital stock. Price—At
Eastman
DillQn.y Union Securities & Co.; Kidder Peamarket/ (about $10 per share).
Proceeds—For invest¬
body & Co.,. Smith,; Barney & Co. and Biyth j& Co., Incv
ment; Office—25 Broad
St., New York. Underwriter—
(jointly). Bids—Had been expected/ to be*. received up
Oppenheimer & Co./ New York.
Offering — Expected
to noon (EDT) on Aug. 26 at Room 2033, Two-Rector St.,;,
sometime ;in;--February.
New York, N. Y., but company on Aug. 22 again decided
/ Pacific Telephone & Telegraph Co.*
to defer sale pending improvement in market conditions.
Oct. 24 filed 1,594,604 shares of common stock
being
X Montana Power Co.
offered for subscription by holders of
outstanding com¬
July -1 rued 100,000 Shares ^of common - stock (np par)
mon and preferred stock of record Nov.
26, 1958 on the
The stock will be offered
basis of one new share for each
"only to bona fide residents
eight pommon or pre¬
of Montana. Price—To be related to; the current market.; ferred shares
held;/rights will expire on Dec. 30, 1958.
price on the New York Stock Exchange/ Proceeds—To¬
Price—At par ($100 per share). Proceeds—To
repay ad¬
gether with other funds, to carry on the company's con¬
vances from American Telephone &
Telegraph Co. Un¬
struction program through
1959.
Manager-Dealers —
derwriter—None.
Control—Of the 832,000 shares of
Smith, Barney. & Co., Kidder, Peabody & Co. and Blyth
6% preferred stock (par $100) and 11,936,835 shares of
;8i Co.,Ine.
^
/• •• :"i , > ,4
common stock (par
...
v,
$100) outstanding as of Oct. 24, 1958,
.^^Nattirai-Oa»'S«^ce-:Cd.K;;'('lVT)
X'.--' •/•••' /■- there were owned by the Ameri^n Telephone & Tele¬
Dec. 4 filed $200,000 of 6% subordinated incoirie' deben¬
graph Co. 640,957. preferred shares and 10,790,943 com¬
tures due Jan. 15, 1984, and 40,000 shares of common
mon shares.
stock tpvbef offered,;in units pf $20 of^debentures and
Packman Plan Fund, Inc., Pasadena, Calif.
fbur shares of common stock. Price?—To be/supplied by,
May 19 filed 20,000 shares of common stock (par $1).
amendment. Proceeds—For capital expenditures. Office •
Priccr—At market./ Proceeds—For investment. Under¬
403 XWilliam. St., Fredericksburgj V^ ^Underwriter—
writer—-Investors Investments Corp., Pasadena, Calif.
Kidder, Peabody & Co., Inc., New York;;, />> >>// .,>/1
• Penn-Daw Limited Partnership
Neylor Engineering & Research ,Corp/*v//-T»^
Dec. 11 filed along With Penn-Daw Real Estate Invest¬
Sept. 29 (letter of notification) 300,000 shares- of cumu¬
ment Trust $300,050 of Limited Partnership Interests in
lative voting and non-assessable common srtockv Price—
42 J/2 % of the partnership (to be offered for public sale
At par ($1 per share). Proceeds—For organizational exat $3,530 per'42 % interest); and $337,025 of Beneficial
penses and first three months' operational expenses. Of¬
Trust' Certificates in the Investment Trust (85 certifi¬
fice—1250 Wilshire Blvd.,' Los Angeles ?
cates to'be Offered at $3,965 per certificate).
17/ Calif 1 Under¬
Proceeds
—For acquisition of property and for working capital.
writer—Waldron & Co.) San Franciseb-4, CaliL A
; ."
/• Nedow Oil Tool Co.
Office—Seven Corners Shopping Center, Fairfax County,
-V*V
Va.
Underwriter—None.
May- 5 (letter of notification f 150,000 shares of common
repay
.
i
.
•
stock (par one cent).„ Price—$2 per share. Proceeds—To
pay loan;, to acquire fishing tools for leasing; and for
working capitaL Office—.931 San Jacinto Bldg.y Houston,
Tex.
Pennsylvania Power Co.
,
Underwriter—T. J. Campbell investment :Co., Inc.
Houston, Tex.
//*• / '/'//;-
// .../'/"v 'X
^Networks Electronic Corp.
> .:
Dec. 8 (letter of notification) 150,000 shares of common
stock, (par 50 cents).
Price—$2 per share. Proceeds—
To be used for dev.elopmerit of new engineering proj¬
ects; purchase of 10 acres of land, and the; balance will
;
be; used for working capital, Office—.14806* Oxnard St.,
Underwriters—Holton, Hull &, Co., Los
Angeles, Calif, and Pacific Coast Securities Co., San
'Francisco, Calif.'
.Van Nuys,Calif.
New
Jersey Investing Fund, Inc., New York
.Dec. 9 filed 200,000 shares of capital stock/Price—At
market.
and
Proceeds-—For investment: Investment Adviser
Distributor—Spear, Leeds & Kellogg, New York.
|
Northern Insurance Co.- of New York 412/31)
,
of record Dec. 23, 1958, atthe rate of one
for each two shares then
issuable to stockholders
held
as
a
new
share
(exclusive of any shares
result
of
a
distribution
of
.one new share for each old share held of record Dec.
23/
.1958 which will be made concurrently with the issuance
;of the warrants)rights to expire on Jan.., 19. Price—
To be supplied by amendment. Proceeds—-Txl increase
.capital and surplus/ Underwriters—The- First Boston
Corp. arid Wood, Struthers &.Co/ both of New York.
.
Northwest Airlines, Inc.
Nov.
13
filed
457,873 shares, of cumulative preferred
stock, convertible series (par $25) being offered for sub¬
scription by common stockholders on the basis of one
preferred share for each three common shares held on
Dec. 8; rights to expire on Dec. 22. Price—At
par. Pro¬
ceeds—Together with other funds, (to liquidate the bor¬
rowing under the present-credit agreement with banks
now
amounting to $34,000,00.0, and the balance,, together
with* cash generated from
depreciation and retained
earnings will be applied toward the acquisition of the
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988
Proceeds—To redeem
a
like amount of
5%
first mort¬
bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; White Weld & Co.;
Equitable Securities Corp., and Shields & Co. (jointly);
gage
Lehman
Brothers, Eastman Dillon, Union Securities &
Co^ Salomon Bros. & Hutzler and Ladenburg, Thalmann
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
and Dean Witter & Co. (jointly). Bids — Tentatively
had been expected to be received up to 11
on
Aug. 27 but company
sale
on
a.m.
(EDT)
Aug. 22 decided to defer
pending improvement in market conditions.
Pennsylvania Power & Light Co. (1/6)
Dec. 17 filed 295,851 shares of common stock (no par) to
be offered by the company for subscription by its com¬
stockholders of record Jan. 6, 1959, at the rate of
share for each 20 shares then held. Employees
mon
one, new
«Dep. 5 filed n 145,200 additional shares of capital rstock
(par $12.50) to be offered for subscription by stockhold¬
ers
stock.
Office—821 Gravier St., New
Orleans 12,
-
Underwriter—None.
^ Pi neb rook Showtent, Inc.
(letter of notification) 150 shares of class A com¬
stock (no par) and $120,000 5% promissory notes.Price—$1,000 per unit (including one share of class A
stock and promissory note for $800). Proceeds—To es¬
tablish a musical tent theatre and for working capital.
Office—c/o Squadron ALTER, 32 E. 57th St., New York,
mon
N. Y.
will be given a contingent subscription privilege. Price
—To be supplied by amendment. Proceeds—To be added
to the general funds of the company and used for gen¬
eral
corporate purposes. Underwriters—The First BdsCorp., New York, and Drexel & Co., Philadelphia,
ton
/
preferred
stock, series A (par $100) and $1,000,000 of 8% subordinw ;
ated debentures, series A, due Dec. 1/1968 to be offered
Performer Boat
Corp%
Nov: 26
(letter of notification) 300,000 shares of common
(par 25 cents). Price—$1 per share. Proceeds—
For working capital.
Office —14720 Lakewood Blvd.,
Paramount, Calif.
Underwriter—R. A. Holman & Co.,
stock
New
York, N. Y. Statement is understood to be effective.
4k Petroleum Chemicals, Inc.
Dec. 5 (letter of notification) not to exceed $300,000 of
a thrift plan to be offered to eligible employees of the
company and participating affiliated corporations. Price
—At market on the New York Stock Exchange (the
average cost of all shares during each accounting period
under the plan.) Proceeds—The plan provides that funds
in the accounts of participants may be invested in U. S.
Government bonds or notes, in shares of Cities Service
Co.
units
in
ferred
of
a
stock.
$500 debenture and five shares of pre¬
Price—$1,000 per unit. Proceeds — For
Underwriter—None.
general corporate purposes.
de Leon
Ponce
Trotting Association, Inc.
(par one
cent). Price—$1.50 per share. Proceeds—To pay current
liabilities, for new construction and working capitaL
Office—Bayard, Fla. Underwriter—Robert L. Ferman
Co., Inc., Miami, Fla.
Aug. 7 filed 400,000 shares of common stock
common
stock and in shares of Continental Oil Cor
>
Prairie Fibreboard Ltd.
Aug. 18 filed 209,993 shares of common stock (par $1.50)
to be offered for sale to residents of Canada in the Prov¬
inces
of
Manitoba,
Saskatchewan and Alberta and to
residents of the United States "only ih the State of North
Dakota."
Price — $3 per share.
Proceeds—For con¬
struction
purpose.
Office —Saskatoon,
Saskatchewan,
Underwriter—Allied Securities Ltd., and United
Canada.
Securities, Ltd., both of Saskatoon, Canada;
;
/.°/*//■
Preston Moss
Dec.
12
Fund, Inc.
'
20,000 shares of capital stock.
filed
market.
Proceeds—For investment.
Price—At
.
Office—24 Federal
Street, Boston, Mass.
Rassco Financial Corp.
series A sinking
June 26 filed $1,000,000 of 15-year 6%
fund debentures due 1973, to be offered
in denominations
of $500 and
$1,000. Price—At par. Proceeds—For working capital and general corporate purposes. Underwrites
—Rassco Israel Corp., New York, on a "best effort^/
basis..
•
Realty & Theatre Ventures, Inc. (12/19)
18 (letter of notification) 200,000 shares of. class
A stock; (par one cent).
Price—$1.50 per share. Pro¬
ceeds—For general working capital.
Office—59 Broad
Nov.
St., New York, N. Y. Underwriter—Willis E. Burnside
Co., Inc., New York.
&
Remo Corp., Orlando, Fla.
*
Sept. 22 filed 100,000 shares of class A common stock.
Price—To be supplied by amendment.
Proceeds—For
working capital.
Orlando, Fla.
Underwriter
—
Citrus Securities Co;,
Ltd., Alberta, Canada
/
shares of common stock (par $1).
shares are to be sold on behalf of
the company and 824,000 shares for the account of cer¬
tain selling stockholders.- The company proposes to offer
the 1,174,716 shares for subscription by its .shareholder!
at the rate of one new share for each three shares held
Richwell
Petroleum
June 26 filed 1,998,716
Of this stock, 1,174,716
(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment.
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added" to working
capital. Underwrite* — Pacific Securities Ltd., Van¬
couver, Canada.
;
Rochester Razor, Inc.
Dec. 3
*
.
*
(letter of notification) 400 shares of capital stock
(no par). Price—$125 per share. Proceedsr—For general
corporate purpose. Office—21 Rutter St., Rochester, N» Y.
Underwriter — Frederick A. Merlau, Rochester, N„ Y/
associated with Grimm & Co., as agent for the corpora¬
tion.
Routh
Robbins Investment Corp.
Sept. 22 filed $1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of common stock.
Priee—Of
debentures, at par
(in units of $100 each);
$1 per share.; Proceeds—For investment!
working capitaL Office—Alexandria, Va. Under¬
and of stock,
and
writer—None.
'
★ St. Regis Paper Co.
of common stock, to be of¬
outstanding shares of capital stock
J. Kress Box Co. on the basis of
shares* of St.
11 filed 288,450 shares
Dee.
fered in exchange for
of F.
Regis common for each share of capitaL stock oof Kress.
St. Regis will declare the exchange offer effective if
95% of the outstanding shares of Kress stock are de¬
posited in exchange and may elect to do so if a lesser
per cent, but not less than 80%, of Kress shares, are so
deposited.
r
Pa.
•
Underwriter—None.
Pioneer Trading Corp., Bayonne, N. J.
Nov/10 filed 10,000 shares of $8 cumulative
and
.
y.'-x;/V/''/f :. //;"/
La.
Dec. 9
to: increase
purposes.
common
Diago Gas & Electric Co. (1/S)
Dec. 8 filed $15,000,000 of sinking fund debenture^ due
Jan. 15, 1984.
Proceeds—Toward the cost of additions
to utility property. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co. and Shields & Cov (joint¬
ly); Salomon Bros. & Hutzler, Kuhn, Loeb & Co.^and
American Securities Corp. (jointly)^ Eastman DiLion,
Union Securities & Co. and Merrill Lynch, Pierce, Fen¬
San
ner
& Smith
(jointly); Lehman Brothers; Blyth LU.,
Inc.; The First Boston Corp.
to 11:30 a.m. (EST) on Jan. 8.
Bids—:To be received up
-
San Diego Imperial* Corp., Sao Diego, CaliL
Dec. 9 filed 845,000 shares of common;steckvtnbe
fered in exchange
»*•
_
of¬
for all of the 45,000 outstanding shares
'
nn
TMfltf
TTfl
ttf
The Commercial and Financial Chronicle
(26321
Continued
jrom
page
■:
'
'
—
-
1
Agency, Inc., both of Denver, Colo.
surance
it Security Title & Guaranty Co.
Dec. 5 (letter of notification) 45,407 ^ shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For
general corporate
New
York, N. Y.
Underwriter—None./
Life
Service
Insurance Co.
Sept. 26 (letter of notification) 3,567 shares of common
6tock (par $1). Price—$18.75 per share.
Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,
Fort
•:
..
12 filed
50,000 shares of
Proceeds
market.
For
—
stock.
common
investment.
visor—Investment Fund Management
Ad¬
Corp.
^Sheraton Corp. of America
000.000 of the debentures in exchange for outstanding
common shares and an additional
$4,000,000 in exchange
for outstanding 4%% convertible debentures due March
1, 1967, and 5% debentures due March 1, 1967 (the
of
the
bentures
to
are
be
offered
to
sold by
company
capital.
poses, including the financing of the cost of any acquisitions and new construction. Underwriter—Sheraton Se¬
a
best efforts basis.
Sheridan-Belmont Hotel Co.
Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for
subscrip¬
tion by common stockholders on a
pro rata basis. Price—
At par. Proceeds—For
working capital. Office — 3172
North Sheridan Rd.,
Chicago 14, 111. Underwriter—None
Silicon Transistor
Corp.
Dec. 4 filed 200,000 shares of
.
Price—$3
common
.stock (par 20 cents).
stock (par
For working capital.
—
N. Y.
Office—111 E. Mali
Mart, Inc., Boulder, Colo.
stock (par $5).
Price—$10 per share. Proceeds—For working capital and
<: construction
program.
Underwriter—Allen Investment
10 filed 500,000 shares of common
writer—None.
Washington Water Power Co. (1/7)
$15,000,000 of first mortgage bonds due 1989,
supplied by amendment. Proceeds—To re¬
bank loans and for new construction. Underwriters
—Kidder, Peabody & Co., Blyth & Co., Inc., White, Weld
& Co. and Laurence M. Marks & Co., all of New York.
pay
holders
Place, N. Y. Under¬
Arnold Malkan, President, located at 565
Avenue, New York 17, N. Y., will subscribe for
100,000 shares if other 100,000 shares are sold publicly.
.
Elmsford, Inc., New York (12/22)
$250,000 of 6% 10-year debentures and 5,-
000 shares of 6%
participating preferred stock (par $50)
to be offered in units of a
$50 debenture and one share
of preferred stock.
Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan
-
Portfolios,
Inc., New York.
•
Slick Oil
Dec.
Corp., Houston, Texas
filed $1,500,000 of
participating interests in the
8
corporation's
joint
venture
'
minimum
the
amounts
of
program,
assemble
nental
upon demand during
and acquire interests in
United
to
be
$15,000, payable 20%
balance
in
offered
down
and
.
1959.
Proceeds—To
Canada and Conti¬
Dec.
8
Engineering, Inc.
(letter of notification) 25,000 shares of class A
stock (par $1.25).
Price—$12 per share. Pro¬
cies, and
to pay the necessary expenses
ceeds—For purchase
Edmond M.
of new tools and
working capital.
Office—7725 New Haven Avenue, Melbourne, Fla. Ui\derwriters—R. S. Dickson & Co.,
Charlotte, N. C.; Atwill
& Co., Inc., Miami
Beach, Fla.; Johnson, Lane, Space
Corp., Savannah, Ga.; and Security Associates,
Inc.,
Winter Park, Fla.
,
•
be
28
shares
*
(letter
of
notification)
of
an
common
stock (par $2.50) to be
offered to
employees of company and its subsidiaries
through Em¬
ployees Stock Purchase Plan. Price—95% of
market
of book
value, whichever is higher at date of sale. Pro¬
working capital. Office—205 E. 10th
Street,
Amarillo, Texas. Underwriter—None.
Sports
Nov.
18
bentures
-
.
,
de-
"
poses.
—33 Great Neck Rd.; Great
Neck, N. Y,
.
.
900,500 shares of com¬
stoellf Price—At par (10 cents per share). Proceeds
.
-
.
■
.
yy y
y
New York 6,
debenture. Proceeds — To develop property
certain facilities. Underwriter—None.
per
^y
•
•
iand
build
•
Woodward & Lothrop Inc.
Dec.
(1/8)
50,000 shares of common stock (par $10).
be supplied by amendment.
Proceeds—for
9 filed
Price—To
other
Underwriter—Alex Brown & Sons,
inventories, accounts receivable, and
merchandise
corporate purposes.
Baltimore, Md.
Wyoming Corp. y
1^449,307 shares of common stock. Of these
shares 1,199,307 are subject to partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new
share for each 2.33 shares held on that date. Price—$4
Nov. 17 filed
Proceeds—$300,000 will be used for payments
of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co.
Office—319 E. "A" St., Casper, Wyo. Under¬
writer—None.
r':
<
per
on
share.
contract to purchase shares
Prospective Offerings
<
*
(letter of notification)
City, Utah.
Inc.
$3 each. Proceeds—For general corporate pur¬
Office—151 Adell Avenue, Yonkers. N. Y. Un¬
Acme
—For mining expenses. Office—305 Main St., Park City
Utah. Underwriter—Walter Sondrup & Co., Salt Lake
.
Underwriter—
System,
Wilmington Country Club, Wilmington, Del.
27 filed $500,000 of debentures due 1991 (non in¬
bearing) and 800 shares of common stock (par
$25) to be offered to members of this club and of
Concord Ltd. Price—$375 per common share and $1,000
pected to be $1 per share). Proceeds—For exploration
Underwriter—To be named by amendment.
Graham Albert Griswold of Portland, Ore., is Pres¬
mon
Color Television
terest
purposes.
April 11
Underwriter—
Statement effective Nov. 18.
N. Y.
Underwriter—None.
.
O.
derwriter—Edwin Jefferson, 39 Broadway,
Chemical Corp.
Utah Minerals Co.
construction program.
fered at
ident
Sports Arenas (Delaware) Inc.
Nov. 13 filed 461,950 shares of common
stock (par one
cent). Price—At the market (but in no event less
than
$6 per share). Proceeds—-To selling
stockholders.^Office
; None, '
&
For
St., Lima,
April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are being offered to stock¬
holders at $2 per share (rights to expire on Jan. 17),
and the remaining 62,035 shares are being publicly of¬
Uranium Corp. of America, Portland, Oro.
April 30,1957 filed 1,250,000 shares of common stock (par
16 cents). Price—To be suoDlied by amendment (ex¬
None.
;
Glass
—
for each
Price—
None.
★ U. S. Stock Transfer Corp.
Dec. 8 (letter of notification) 50,000 shares of common
stock.
Price—At par ($1 per share). Proceeds—To be
used for acquisition of one or more agencies and for
record conversion, and for working capital. Office—814
Boston Bldg., Denver, Colo. Underwriter—None.
(subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment.
Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds;
$350,000 to pay
for other installations, fixtures and
equipment; $85,000
to expand
two present establishments
by increasing
the number of alley beds
by eight at Yorktown Heights
and by six at Wilton Manor
Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds,
telephones and util¬
ities; and $395,000 for working capital. Underwriter—
*
States
Office—Tiffin, Ohio.
Arenas
(Delaware)
Inc.
filed $2,000,000 of 6%
10-year convertible
18,
United
per share.
Proceeds
Office—3L9 West Market
$15
Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds — To selling stockholders.
or
ceeds—For
r
13 filed 203,897 shares of capital stock (no par) to
for subscription by stockholders of record
will be used to prepay conditional sales contracts for
trailers, tractors and miscellaneous equipment previously
acquired by the company for use in "piggyback" opera¬
tions, and approximately $1,750,000 will be applied to
additional "piggyback" equipment, the balance will be
used for general corporate purposes, primarily as addi¬
tional working capital to finance expanded "piggyback"
operations. Underwriter—Merrill Lynch, Pierce, Fenner
& Smith, New York.
;
"»'•
'
.•
estimated1'10,000
10 shares
to
of
Oct.
(12/19)
1958, at the rate of one new share for each
held, rights to expire on Jan. 6. Price—To
be supplied by amendment. Proceeds — Some $750,000
^ Southwestern Investment Co.
-
in producing
offered
Dec.
year.
..-Nov.
Freight Co.
6, 1958, at the rate of one new share
then held; rights to expire on Jan. 9.
record Dec.
Wilier
Underwriter—None
Office—Louisville, Ky.
Smith, is President.
States
'
West Ohio Gas Co.
Nov. 17 filed 37,615 shares of common stock (par $5)
be offered for subscription by common stockholders
it Western International Life Co.
Nov. 28 (letter of notification) 300,000 shares of com- mon stock
(35 cents).
Price—$1 per share. Proceeds—
For working capital.
Office—314 First National Bank
Building, Colorado Springs, Colo. Underwriter—None.
four shares
Office—Knoxville, Tenn.
Underwriters—Stein Bros. & Boyce and John C.
Legg &
Co., both of Baltimore, Md. Offering —
Expected this
.
United
Nov.
Southern Fire &
Casualty Co.
Nov. 26 filed 12,000 shares of
$1.50 convertible preferred
stock. Price —At par
($25 per share). Proceeds — For
general corporate purposes.
.,
stock, of which
United Security Life & Accident Insurance Co.
Aug. 22 filed 120,000 shares of class A common stock
Price—$3 per share. Proceeds—To provide the reserves
required to be held in life and accident insurance poli¬
insurance.
,
common
President.
common
r
shares of
United Employees Insurance Co.
.April 16 filed 2,000,000 shares of common stock (par $5,
Price — $10 per share. Proceeds — For acquisition o*
operating properties, real and/or personal, includinf
office furniture, fixtures, equipment and office space, b?
lease or purchase. Office — Wilmington, Del.
Under
writer—None.
Myrl L. McKee of Portland, Ore., t»
States.
Underwriters—Rowles, Winston
Co., Houston, Tex., and Dewar, Robertson & Pancoast, San Antonio, Tex. Offering — Expected
early in
January.
&
Soroban
281,596
shares are to be offered for subscription by
of company's common stock of record Dec. 31,
1958, on the basis of three new shares for each share to
be held following a distribution to stockholders of rec¬
ord Dec. 5, 1958 of American Machine & Metals, Inc.
There will be an oversubscription privilege. The re¬
maining 3,220 shares are to be offered to certain em¬
ployees. Price — $1 per share. Proceeds — For working
capital. Underwriter—None
Sire Plan of
Nov. 10 filed
Mining Co.
filed
2
•• •;
Price—To be
278,376
Fifth
Trout
'
•
Dec. 9 filed
Co., Boulder, Colo.
Dec.
y
.
it Wall Street Planning Corp., Boston, Mass.
Dec. 10 filed (by amendment) an additional $6,000,000
of Systematic Investment Programs and Systematic In¬
vestor Programs with Group Creditor Life Insurance
Protection and $1,000,000 of Single Payment Investment
Programs.
Proceeds—For investment. <
*
-
Tower Merchandise
Nov.
present inventories, and for working capital.
fice—150 Glen Cove Road Carle
crease
•
America, Inc.
shares of common
$1.50). Price—To be supplied by amendment
(approximately $2.25 per share). Proceeds — To repay
short term bank loan; reduce accounts payable; acquire
inventory and the balance for working capital. Under¬
writer—Paine, Webber, Jackson & Curtis, New York,
Nov. 10 (letter of notification) 21,500
Underwriter—Peter Morgan & Co., New York.
Proceeds
Co., Inc., Davenport, Iowa.
Vocaline Co. of
St., Morristown, Tenn. Underwriter—Valley Securitiei
Corp., Morristown, Tenn.
share. Proceeds—To purchase equipment, in¬
Of¬
per
and Quail &
Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-cem
cumulative preferred stock (par $5) and 27,272 sharei
of common stock (par 10 cents) to be offered in uniti
of one share to each class of stock. Price—$11 per unit
—
curities Corp., Boston, Mass, on
the trustees.
Surrey Oil & Gas Corp., Dallas, Tex. (1/15)
Nov. 12 filed 300,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—To retire current liabil¬
ities and for drilling and exploration costs and working
employees at
an
offering price equal to 95% of principal amount.
The remaining $13,500,000 of
debentures, plus any part
of the $12,000,000 not taken pursuant to the
exchange
offers will be offered for public sale at 100% of
prin¬
cipal amount. Proceeds
For general corporate pur¬
'
(letter of notification)
'
exchange offers are to be supplied by
An additional $1,000,000 of the new de¬
amendment).
>
bonds, 5J/i% series due 1987, to repay $4,000,000 of
balance together with further
borrowings under a bank agreement and cash, generated
In the business will be used to carry forward the con-;
struction program of the company and its subsidiaries
amounting to approximately $43,000,000 for the period.
1958-1960. Underwriter—To be determined by competi-;
bank borrowings, and the
15,700 shares of common
tive bidding.
Probable bidders: Halsey, Stuart & Co.
subscription by stockholders of
Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
record Nov. 17, at the rate of one share for each two
White, Weld & Co. and Stone & Webster Securities Corp.
shares held (with an oversubscription privilege); rights
(jointly); Salomon Brothers & Hutzler ; Kidder, Peabody
to expire on Dec. 15. Price — At par ($10 per share).
Co.; Eastman Dillon, Union Securities & Co., and'
Proceeds—To retire outstanding debts and for working
Smith, Barney & Co. (jointly); Bids—Were to have beencapital. Office—Fifth Ave., Chardon, Ohio. Underwriter
received in Room 2033, 2 Rector Street, New York,1
—None.
'
/
7' N. Y., up to noon (EDT) oh Sept. 9, but were postponed
it Sun Valley Life Insurance Co.
J
on Sept. 3. Statement has been withdrawn.;
.
> _••/ fc Dec.
5
(letter of notification)
$299,916.25 principal
Vernon Co., Newton, Iowa
amount of units of trust fund certificates. Price—$2 per
Nov. 25 filed 50,000 shares of common stock.
Price—•
unit.
Proceeds—For working capital.
Office—2019 E.
$9.25 per share. Proceeds—For working capital. Under¬
Broadway, Phoenix, Ariz. Underwriter—None. To be
writers—T. C. Henderson & Co., Inc., Des Moines, Iowa,
Oct. 24 filed $26,500,000 of 7%% capital income sinking
fund debentures.
The company proposes to offer $8,--
terms
first mortgage bonds due
$15,000,000 of first mort-
stock being offered for
Price—At
Investment
Hunt
gage
Structural Fibers, Inc.
Nov. 4
^ Shares in America, Inc., Washington, D. C.
Dec.
,
.
Light Co.
filed $20,000,000 of
Proceeds—To redeem
26
1988.
Southwest Shares, Inc., Austin, Texas.
■
.
Utah Power &
o
june
Underwriter-
to beneficiate manganese ores.
Process
Worth, Tex. Underwriter—Kay & Co., Inc., Hous¬
TeX.
ton,
Ave., Rochester 11, N. Y. Underwriter—Frank P.
& Co., Inc., Rochester, N. Y.
Strategic Minerals Corp. of America, Dallas, Tex
$2,000,000 of first lien mortgage 6% bond*
and 975,000 shares of common stock (par 10 cents). Priet
—For bonds, 95% of principal amount; and for stock $;
per share. Proceeds—To erect and operate one or mor«
chemical processing plants using the Bruce - Williamj
; i
.
Inc. y y
(letter of notification) 300,000 shares of capital
stock. Price — At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
March 31 filed
Office—342 Madison Ave.,
purposes.
18,1958
May 6
July 9 (letter of notification) 50,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To be
invested in stocks and bonds and to acquire other life
insurance companies. Address—P. O. Box 678, Gulf port,
Miss. Underwriter—Gates, Carter & Co., Gulfport, Miss
of capital stock of Silver State Savings & Loan Associa¬
tion and 3,000 shares of capital stock of Silver State In¬
Thursday, December
..
Utah Oil Co. of Now York,
Life, Health A Accident Insurance Co.
State
.
115
.
.
Steel
March 21 it
was
Co.
announced that the company plans
tional financing this year, in
addi¬
the form of common stock,
preferred stock, or a combination of the two, including
bank loans. Proceeds—For expansion program, work¬
ing capital and inventories. Underwriters—Blyth & Co,
Inc. and Merrill Lynch, Pierce, Fenner & Smith,,yt
188
Volume
Number 5804
.
.
The Commercial and Financial Chronicle
.
ic Alabama Power• Co.- (4/30)
'Dec.
10 it
(2033)
White, Weld-& Co. (jointly); Blyth & Co., Inc; Registra¬
tion—Planned for March 6. Bids^—Expected to be re¬
announced'.that-the company plans/the
issue-and sale of $20,000,000 of 30-year first mortgage
bonds, a Proceeds -— For construction program. Under¬
writer—To be determined by. competitive bidding.. Prob¬
was
ceived
April 2.
on
Heublein, Inc.
;
;
'
•
-
',:•?? ?""*'• •???.••
?•?■>'
Now York Atato Electric and Gas Co. :
?
)
was announced that
approximately $7,500,000
additional financing will be required for construc: Hon expenditures for the balance of this
year. The man;:
agement intends to negotiate a new line of credit with m
March 7 it
from
.
Aug. 25 it was reported that the company plans early;
Halsey, Stuart & Co. Inc.; Lehman Broth¬
registration of 400,000 shares of common stock; of which
ers; Eastman Dillon, Union Securities & Co.; Equitable
100,000 shares are to be sold for the account of selling
Securities Corp, and Drexel & Co. (jointly); Harriman
-? stockholders. Proceedsr—For expansion. Underwriter—
Ripley & Co., Inc. and Goldman, Sachs & Co. (jointly);
Glore, Forgan & Co., New York. Offering—Not expected
Morgan .Stanley & Co.; Blyth & Co., Inc. and Kidder,
this year.
••
"
•
Pea body & Co. (jointly); The First Boston Corp. Regis¬
tration—Planned for April 3, Bids—Expected to be re¬ c# Interstate Motor Freight System, Inc. (Mich.)/
_
able bidders:
ceived
on
April 30.
:
;
;
_
Dec. 1
fr
Columbia Gas System,
Inc.
reported that the company may issue and
sell additional common stock in the first half of 1959.
''Proceeds—To repay outstanding bank loans. Underwriter
—To be determined by competitive bidding. ; Probable
bidders: Xiehman Brothers and Eastman Dillon, Union
Securities & Co. (jointly); Merrill Lynch, Pierce, Fen¬
Dec. 1 it
^Commonwealth Edison Co.(1/13)"? v??V
12 it was announced that company will issue and
$20,000,000 of 50-year sinking fund debentures due
2009. Proceeds—For construction program. Underwriter
-To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.;
The First Boston Corp. Bids—Expected to be received
on Jan. 13.
Registration—Planned for today (Dec. 18).
the
company
Stone & Webster Securities
plans to
gan
r
-,
.
company
expects later
in the year to issue and sell additional securities, prob¬
ably preferred* stock, to secure approximately $5,0OO,0OC
of additional funds. Proceeds—Together with $7,000,000
from private sale of 4(6% bonds, to repay short-term,
bank loans and for construction program. Underwriter#
i—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White
Weld & Co,, all of New York.
??.?"■
1- V:
First
Northern
construction program.
Underwriter—To
$15,000,000 preferred
satisfactory market. Proceeds—
bank loans and for construction program. Un¬
To be determined by competitive bidding.
Probable bidders (1) For preferred stock: Blyth &
Co.,
Infc. and The First Boston Corp. (jointly); Lehman Broth¬
stock issue if there is
To repay
derwriter
Fenner &
ic Pacific National Bank of San Francisco
Bank in
.
J
additional shares of
subscribe
on
or
before
Dec.
17
To
increase
for
Underwriter
322,388
—
the
San
bidders:
Co.
..
Co., Tulsa, Ok la.
it Georgia Power Co.
Pec. 10 it
and sell
share.
Proceeds—To increase
was
(9/10).
announced that the company plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For
construction
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Peabody & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Go. Inc.
; Registration—Planned
for Aug. 14. Bids—Expected to
/be received on Sept. 10.
./•
program.
Giant Food Stores, inc.
1
-Nov. *84t
t
was reported that the company plans an offer¬
ing of common stock to holders of Giant Food Prop¬
erties, Inc. Underwriters—May be Kidder, Peabody &
Co., New York, and Auchincloss, Parker & Redpath,
Washington, D. C.
^
Groat Atlantic & Pacific Tea
Co., Inc.
secondary offering of common
voting stock is expected this year. Underwriters — May
include: Blyth & Co., Inc.; Lehman Brothers and Smith,
Bamegr & Co.
PeB. 19 ft
Underwrite!
by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &
was
reported
it Gulf Power Co.
a
(4/2)
?
May be placed privately. Proceeds
bank loans and for working capital.
—
of
bonds, unsecured notes and
Proceeds—For
common
New
stock.
announced
(6/25)
that
construction
by
tration—Planned for
Dec.
12
it
was
announced
that
the
company
plans to
(par $5)
each 10 shares held
First
on
the basis of
on or
one
about Jan. 22.
new
share for
Underwriters—
Corp., New York; and RobinsonHumphrey & Co., Atlanta, Ga. Registration—Expected
Dec. 10 it
Mooro-McCorviiack Linos, Inc.
was announced company plans to issue and
sell $24,000,000 of government insured bonds secured by
« first preferred ship mortgage on the liners S. S. Brasil
107
Auburn
Ave., N* E., Atlanta, (5a.
(2/4)
Argentina.
Underwrite!*—Kuhn, Loeb & Co.
Offrrlnr
Postponed because of uncertain rrarlmf c^nrTifin«c
York, N. Y.
Registration—Planned for Jan. 9.
♦
(1/20)
was
Bell Telephone Co.
announced Missouri Public Service Com¬
$110,000,000 of
35-year debentures. Proceeds — To refund outstanding
$100,000,000 4%% debentures. Underwriter—To be determined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Offering—Has been postponed. Bids had been expected
about Sept. 30. 1958.
: ;
•
vVr v
July 10 It
March 24 it
and T^bman Brothers, both of New Yaork.
Dillon, Union Securities & Co. and Equitable
(jointly); Lehman Brothers. Bids—Ex¬
to 11 a.m. (EST) on Feb* 4 at 250 Park Ave.,
up
was
mission authorized the company to issue
about Dec. 30.
and S. S.
".?.:
Southwestern
Boston
and sell
was announced that the company plans to issue
$7,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith, Salomon Bros. & Hutzler and Drexel & Co.
(jointly); Eastman Dillon, Union. Securities- & Co.;
Equitable Securities Corp.; Kidder, Peabody & Co. and
?/
reported that this company plans sale of
about $35,000,000 of first mortgage bonds. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.,
and Kidder, Peabody & Co. (jointly); The First Boston
Corp. Bids—Expected to be received on or about Jan.
20, 1959.
offer to its stockholders 33,000 additional shares of com¬
The
—
Southern Natural Gas Co.
June 25.
stock
Office
Nov. 24 it
May 29. Bids—Expected to be re¬
it Mobile Gas Service Corp. (1/22)
mon
Weeks, New York. •'?'•'
(5/2S)
Dec. 10 it was announced that the company plans to issue
and sell $25,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Merrill Lynch, Pierce, Fenner & Smith; Kidder, Peabody
& Co. and White, Weld & Co. (jointly). Registration—
Planned for May 1. Bids—Expected to be received on
May 28.
program.
Underwriter—To
competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
determined
on
Corp. ?'•/.
reported that the company is planning
it Southern Elactric Generating Co.
ders:
ceived
Under¬
Securities Corp.
this company plans to
$5,000,000 of 30-year first mortgage bonds.
was
issue and sell
be
was
Southern Co.
pected
Corp. and White Weld & Co., both of New York.
* Mississippi Power Co.
it
shares held.
Jan. 13.
_
Eastman
Proceeds—To build pipe line system to cost about $111,000,000.
Underwriters — Stone & Webster Securities
10
three
on
was announced that the company plans to raise
early in 1959 between $40,000,000 and $45,000,000 through
the public sale of common stock. Proceeds — For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: The First Boston
Corp.; Morgan Stanley & Co., Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Smith (jointly);
To
subsidiary
Midwestern Gas Transmission Ce.
24 it was announced that this
March
Dec.
each
financing
SouDioaatorn Fidelity Firo Inauranca C>.
Aug. 26 it was announced that the company in all prob¬
ability will offer additional common stock to its share¬
holders in the near future. Proceeds—To expand opera¬
.
•
Tennessee Gas Transmission Co. has applied to the Fed¬
eral Power Commission for permission to issue first
mortgage
on
Dec. 10 it
gage bonds.
repay
share for
some^ long-term, financing. Proceeds — To replace an
interim loan obtained in connection with the purcloase
of properties from Gulf States Land & Industries, and
4(4% "bonds due I960. Underwriter — May be Horn-
tions.
Midland Enterprises, Inc.
March 28, company announced it plans to issue on oi
before Dec. 31, 1958 $3,200,000 of first preferred mort¬
.
new
one
"Underwriter—None.
on
conditions.
per
it
blower &
,
been tentatively -scheduled to be re¬
Sept. 16, but on Aug. 26 it was voted to post¬
pone this refunding program because of present market
reported that the stockholders of the
Bank will vote on Jan. 13 to approve a plan to offer100,000 shares of additional capital stock (par $10) on
about a one-for-six basis to stockholders of record Jan.
of
Francisco, Calif.
Oct. 27
Bids—Had
ceived
rate
South Doast
debentures due November,' 1992.
determined
be
directors
writers—Blyth & Co., ;Inc. and Elworthy & Co., both of
The
Michigan Ball Tefaphoita Co.
Aug. 12 directors approved plans to sell $40J)00,000 ol
'34-year debentures. Proceeds—To redeem a like amount
if 4%%
12
Stockholders will vote
-
—To
was
Price—$27
(1/13)
approved proposed offering of 74,511
new capital stock to stockholders at
Dec.
to
shares of capital stock (par $5) at rate of one new share
for each six shares held. Price—$24
per share. Proceeds
;/ ; <i/i3)
13, 1959.
Riter
& Co.
(jointly); Merrill Lynch, Pierce,
Smith; Harriman Ripley & Co., Inc. and East¬
man
Dillon, Union Securities & Co* (jointly); Kuhn,
Loeb & Co. (2) For common stock: Lehman Brothers
and Riter & Co. (jointly); The First Boston
Corp., Blyth
& Co., Inc. and Kuhn, Loeb & Co.
(jointly); White, Weld
& Co. and Glore, Forgan & Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Smith.
ers
Manufacturers A Traders Trust Co.
capital and surplus.
First Boston Corp., New York
capital and surplus. Underwriter—Merrill Lynch, Pierce,
Fenner •& Smith, Oklahoma City, Okla.
and
a
—
rights
Dallas, Texas
Dec. 3 bank offered -290,000 shares of additional common stock
(par $10) to stockholders of record. Dec. 2,
1958 on a one-for-eight basis; rights to expire on Dec.
18. Price—$27 per share.: Proceeds—To increase capi¬
tal and surplus. Underwriters -4- Merrill Lynch, Pierce,
; Fenner
& Smith, ■ Fort Worth, Texas and, Equitable
Securities Corp., Dallas, Texas. :
■
Nov. 25 it
stock issue and possibly a
common
be
Dec. 3 bank offered to its stocldholders of record Dec. 2
—
First National. Bank-A Trust
Statos Power Co. (Minn.)
3, Allen S. King, President, announced that: tho
company plans about the middle of 1959 to put out -a
Dec.
•
„
First Jiattonal
Corp.; Glore, Forgan & Co.; Blyth & Co., Inc.
.
V
Sept. 19 it was announced Bank plans to offer to its
stockholders of record Oct. 2, 1958 the right to subscribe
r
Master Fund, Inc., Fairfield, Calif.
for 125,000 additional shares of capital stock (par $20)
•Jan. 27 it was announced this newly organized investon the basis of one new share for each 10 shares
held; ? ment cofnpany nlans to offer to bona fide residents of
rights to expire on Jan. 10, 1959.Price—$40 per share.
California 10,shares of capital stock (par $1). Mas
Proceeds—To increase capital and surplus. Office—931
—$10 per shar .-, less an underwriting discount of 8(6%
Main Street; Houston 1, Texas. 1
_;,,, ?,
rv
•Proceeds—For investment.
V
1.'1
.
..
.
will sell late this
Underwriter—To be determined by competitive bidding.
Laboratory for Electronics? IWb.>'*•"*
~'
July 3, Henry W. Harding, President, announced thai
the directors are currently'considering
refinancing $790,000 of outstanding botes ($658,750 held by a principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬
ton, Mass.:
;
City National Bank
•
company
Probable bidders: Halsey, Stuart & Co. Inc.; First Boston
by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.;-The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co.. Inc.; Equitable Securities
Corp
Underwriter—Kuhn, Loeb & Co..:
r'???•■/C?'V-• '•?.'"V-??.. v•?*"'??">-
announced
was
$10,000,000 mortgage, bonds but on Sept. .12 it waa
stated that immediate financing will not be necessary.
.determined
market this year.
stock, and has applied to the Interstate Commerce Com¬
mission for'authority to do so^/:?./.
; year
Power A Light Co.
ceeds—For
(Kingdom of)
Sept. 2 it was reported that an issue of between $20,000000 to $30,000,000 may possibly be placed on the Ameri¬
Equitable Gas Co.
July 18 it was announced that the
■;
.•
V North American Van Lines, Inc.
:
Nov. 20, James D. Edgett, President? announced company plans early in 1959 to make a public offering of; its
Northern Illinois Gas.Co.
Feb? 14 it was announced company plans to issue and
Mell $10,000,000 of first mortgage bonds due 1988. Pro¬
Under¬
.
:
derwriter—John M. Tait & Associates,
.Cincinnati, Ohio,
June 10 it
Corp. (jointly); Glore, For-
& Co., and Goldman Sachs & Co. (jointly)..
Kansas
Denmark
New York.
•
program.Utiderwriter—To be determined
oy
competitive1 bidding.Probable bidders: Halsey,
Stuart & Co. Inc.:/Kidder,
Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
writers—May be Morgan Stanley & Co. and The First
Boston Corp., both of New York.. Registration — Ex¬
pected on Dec. 23.
'V;"" '
~
can
,
com-'
for construction
common
To-be determined just prior to the offering date.
fering of 950,000 shares of capital stock.- Price —; $10 per
share.1 Proceeds—To increase capital and surplus. Un,J
plans to sell some bonds originally scheduled for
mid-year. The proposed sale was subsequently; deferred
until late 1958 or early 1959. Prseeeds-^-Ahout
$8,000,000
•
r
company on Dec.
$5,850,000 equipment trust
Halsey, Stuart & Co*. Inc.;
J *\ • • ?
/ - * v
North American Equitable Life Assurance Co?
Dec. 1 it was announced that the
company plans an of¬
;
announced that
Probable bidders:
Salomon Bros. & Hutzler.
pany
stockholders $59,778,600 of converti¬
ble debentures in the latter part of January on the basis
of $100 of debentures for each 25 shares owned. Price—
,
certificates.
-•
Consolidated Edison Co. of New York, Inc.
announced lhat
-18 for the- purchase from it of
reported that the company plans to issue
125,000 shares of common stock. Underwriters—
,
Dec.
25 it'.was
.
was
•?Kansas Gas :* Electric Co.
March 31, G. W. Evans, Chairman,
group of banks and expects to sell equity securities later
Ihis year or in early^1959,. depending upon
prevailing
market conditions. Underwriter—For any common stock!
The First Boston Corp., New York.
Norfolk A Western lty. ( 12/16)
Bids are expected to be received by the
Japan(Empir*a«) T.yi
Aug. 20 it was stated that an issue of between $25,000,000
and $30,000,000 of bonds may soon he
publicly offered
on .the American market;' Proceeds—For
public works
projects, etc. Financial Adviser—The First Boston Corp.,"
New York.
;>"• / J •- */■ 7.? .' .
•' V/?
,~
'-
sell
Nov.
t
Allyn & Co., Inc. and Walston & Co., Inc. Offer¬
ing—Expected any day.
:
-
&.Smith, White, Weld & Co., Shields & Co. and R.
W. Pressprich & Co. (jointly); Morgan Stanley & C6.
offer to its
;
A. C.
was
der
i
it
and sell
117
•
-
—
cn
Tarr
-f ift
The Commercial and Financial Chronicle
Continued jrom page
of
117
Nov.
24 it was
planning the
Un¬
derwriter—White, Weld & Co. and Stone & Webster Se¬
York.
Louis, Mo.
announced company plans to market
part of
financ¬
ing may be put off until June, 1959. Proceeds—For con¬
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: White, Weld &
Co. and Shields & Co. (jointly); Lehman Bros.; Merrill
Lynch, Pierce, Fenner & Smith.
ojbout $30,000,000 of common stock in the latter
this year or in the first quarter of 1959, but this
short term obligations previously
Aug. 13 it was reported that an issue of common stock
will soon be offered to the public, the proceeds of which
Approval
between $50,000,000 and $60,000,000.
run
$1,000 bond. Four other bids were
all for 4%% bonds.
received
far
potential
as
business is
new
concerned. Next week is liberally
a
"washout"
consequence
any
The corporate new issue market
is
down to the close
year with its
house
coming
another
of
in
/
that score.
on
is only one debt issue
There
tap,
on
of
that
being Burlington Industries Inc.'s
$7,051,625
which
of
debentures
new
slated for public offer¬
are
judging by ing on Tuesday.
comment of those in a position to
The
only other
see the picture pretty-clearly.
good
pretty
order,
real prospect
shape of 145,200 shares
takes the
The only element
a
of
really lacking
bit more stability on the part
the Treasury
market where a
amount
certain
of
nervousness
of
of the Northern
which
calendar
for public
capital stock
Insurance Co. of New -York,
is
the
on
offering
dealers are
satisfied to stand by for a spell
and seek what the Government
persists.
-
Wednesday.
on
(
>
Presumably
have
may
agency
tap
on
for
January.
At this time,* the Treasury is
expected to be in the market for
some'more new money and there
is
a
growing disposition in the
market place to anticipate some¬
thing ,iri* the way of attempt at a
long-term offering.
Meantime; the primary market
for
Hibernation
Into
have
firms
Several
intentions
disclosed
seeking addi¬
tional capital through the medium
of marketing of new securities.
Among the largest of recent fil¬
ings with the Securities and Ex¬
change
Commission
is
C.I.T.
Financial Corp.'s $75 million of
their
of
20-year debentures.
will
Proceeds
company
somewhat improved recep¬
Public
will
be
.
Continued fwm page
issue
approximately. 15,000- shares of common stock. Proceeds
—To acquire -Mother's Food Products/Inc. Underwriter
—Granbery, Marache & Co.,. New York. RegistrationExpected in near future..
:
Wisconsin
Power
*
Light Co.
-
»
March 17 it was -announced that company' plans to issue
and sell
$1$,000,000 of first mortgage bonds. Proceeds—
To retire bank loans and for construction program. Un¬
derwriter^— To. be determined by competitive -bidding.
bidders: iHalsey, Stuart & Co. Inc.; Smith,
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and: JBastman Dillon, Union
Securities &*Co. (jointly); White, Weld & Co., -Kidder,.
Probable
Peabddy&Cd.and'*Safcmbh;Bro&JM Hutzler (joint»>;
First 'Boston
The
late in 1998
or
Corp.Offering—Not expected
early in i®59.'
V "
until
■•/'
,
Aug. 18 it Was reported that the company plans the sal#
of $5,000,000 first mortgage bands. Proceeds—For con¬
struction program. Underwriter—To be determined: by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;" Estabrook & Co.. and* Coffin
& Burr, Inc.
(jointly);.Kidder/rPearbody & Go. and White, Weld &
Co.
v*-.-, •
(jointly)./
Robert L. Smith
2
ST.
The Security I Like Best
Opens
PAUL, Minn. — Robert L.
is engaging in a securities
business
from
neer
of
offices in the Pio¬
Building
name
Robert
under; the
firm
L. Smith & "Co.
period of years than*; a the President, Ezra L, Culver, Mr. Smith has been a partner in
having been engaged in this*field Smith, La Hue & Co.
car, and accordingly, is availahle
to the mass market at a monthly for over 30 years.
Some 50*% of
the outstanding shares are owned
cost of under $50. As a result, in
New Fairman Branch
the past five years the number
by the management, which ac¬
of residential swimming pool in¬
cordingly has a major stake in -BURBANK, Calif.—Fairman &
Co. has opened a branch office at
stallations
in
our
country - has and incentive for the .company's
126 East Olive Avenue under the
jumped from 15,000 to over 120,- success. National Pool is the only
direction of Lewis Akmakjiam
000. The aggregate installed value widely publicly held/company in
of * motel,
hotel,
country
club, its industry, and offers in my
beach club, municipal and other opinion an attractive speculative
RudolphArkinOpens
larger pools has climbed to an investment opportunity to partici¬
WASHINGTON, D. C—Rudolph
pate in this exciting growth ineven greater rate.
Arkin is conducting a securities
Ten years ago, the second car »'dustry.
/.v..
business
from
offices
at
777
was the "status symbol'! evidenc¬
National Pool's shares were first Fourteenth
Street, N. W.
ing Qne's affluence to one's neigh¬ offered in 1956 at $3. The man¬
bors.
Today, with most families agement's total absorption" with
With Geo. V. Yates
owning a second car, the swim¬ operating responsibilities resulted
(Special to The Financru Chronicle)
ming pool has become a new hall¬ .in its then budgeting peither
mark of personal success. In addi¬
time,
attention
nor
money
to
CARMEL,
Calif. —Allman J.
joined the
staff o
tion, the residential pool has be¬ broadening its corporate image Cook "has
come the center for the new mode
in the financial community, with George V. Yates & Co., Jorgenson
of
indoor-outdoor
living.
It is the result that the stock until re- Building. *
'
*
;
used for swimming; it even more
cently was most inactive and sold
frequently* serves -as a -photogenic for a time somewhat below its of¬
Sam Garfinkel Opens
backdrop
for
family entertain¬ fering price.~~Nowy-hewever,.mm^
KEWGAKDENS, N. Yr— 1
ment, for cook-outs and-cocktail agement is actively and construcGarfinkel is engaging in a securi
parties, as well as for quiet family tively* engaged in broadening the
of
the
group relaxation.
company's ties business from offices at 110-4
; *•'.: distribution
Queens Blvd.
*
*
Compelling
basic
economic shares and reasonably enhancing
the
company's
sponsorship
factors
underlie
the
growth of
financial
com¬
this industry, — factors which throughout r the
Opens New York Office
The shares are being
should in coming years exert an munity.
Prime Investors Programs, Inc
more
ever more
actively traded, and at: a has
powerful, stimulating
opened an office at. 505 Fift
effect.
Leisure time is steadily closer spread, are being quoted in
additional newspapers, and will Avenue, New York City. '
increasing, with the average work
longer
-
.
..
.
.
,
J
"
-
,
make
available
additional working capital for the
corporate offerings has been
doing quite well for itself and
recent new issues have been get¬
-
Vita Food Products, lnc.i
*
3 v.it was ^reported that the company plans to
Dec.
Smith
the prospective
calendar makes it plain that the
underwriting fraternity could take
the
balance
of the year off so
at
glance
incurred.
Ripley & Co. Inc.,
New York, v
Business
of
Out
A
v
Virginian Ry.
Aug. zo the directors approved a proposal to exchange
2,795,500 shares of 6% cumulative preferred stock (par
$10) for $32,148,250 new 6% subordinated income sink¬
ing fund debentures to mature Aug/1, 2008 on the basi»
Universal Oil Products Co.
may
-
v
for the country. As a first step in the pro¬
gram a short-term credit is being negotiated between the
government in cooperation with the two investment
banking firms and a syndicate of commercial banks in
the United States, Canada and/the United- Kihgdom
The three institutions which are to head this syndicate;
are The Chase Manhattan Bank, The First National City
Bank of New York, and Bank of America National Trust
& Savings Association. The Chase Manhattan Bank will
be the fiscal agent for the credit. The amount of the
new financing involved is in the neighborhood of $2$0,000,000. The purpose is to restore government balance!
which have been reduced by the repayment of excessive
Proceeds—For construction program.
Union Electric Co., St.
■;
'
program
$30,000,000 to $35,000,000 of first
mortgage pipeline .bonds. Additional financing expected
March 28 it was
(Government of)
Venezuela
sale early in January of
curities Corp., both of New
Jan. 16.. Dealer-Manager—Harriman
July 1 the Government announced that Kuhn, Loeb A.
Co. and Kidder, Peabody & Co., both of New York,.have ,
been selected as financial advisors to develop a financial*
Transcontinental Gas Pipe Line Corp.
later in 1959.
>Yy..
Expected in November.
January.
reported that the company is
two months). Proceeds—
Fund -of the American
Underwriters—Expected to be Leh-.
man Brothers, Smith, Barney & Co; and Merrill Lynch,.
Pierce, Fenner & Smith, all of New York. . Offering—.
plans early
reported that the company
Thursday, December 18, 1958
of $11.50 principal amount of debentures for each pre¬
ferred share. Offer began on Nov. 17 and will expire en
with the New York State Su¬
Chemical Society;
registration of about 250,000 to 300,000 shares of common
stock. Price—To be supplied by amendment. Proceeds
—To selling stockholders. Underwriter—Smith, Barney
& Co., New York.
Offering—Planned for some time in
Dec. 8 it was
transaction rests
the
preme Court (expected within
To the
Petroleum Research
Thomas A Betts Co.
is
...
(2634)
118
and its subsidiaries and
to. cut short-term
used
.
borrowings.
,
.
.
.
.
ting
a
tion. In fact the last week or
Service
Co.
of
Indiana
10
Inc., has set in motion plans to
days has witnessed a broad clear¬ raise
$25
million •' of
capital
ing away of portions of recent through sale of mortgage bonds at
issues which had remained unsold.
competitive
bidding.
This
was
Philadelphia Electric' Co.'s re¬ disclosed in a petition filed with
cent offering, evidently set up to the state agency. Proceeds will
suit
the
taste
of
institutional repay
bank loans
and finance
buyers, gave the market a muchneeded
coupon
4%%
rate and. priced at 109, it
fillip.
Carrying
attracted brisk demand.
More
than
that
the
construction.
a
American
disclosed
shares
response
of
Natural
it
will
Gas
offer
common
on
Co.
has
486,325
"rights"
early next year to finance expan¬
„
week
low
dropping steadily
40
income
levels
hours.
has
As
even
total
climbed
to
soon, I believe, more fully reflect
the strong growth factors under¬
lying the business.
"•
'
be¬
personal
record
of
the
climbed to
record
levels;
At
Swan-Rowley
Investing Corporation
Looking ahead, National Pool, u
JAMESTOWN, TL Y. — Swan
materially expand its sales
Rowley Investing Corporation !ha
with no further' increase/.in its
been formed with offlCes in *th
production facilities.
Sales " ex-*
Bank of Jamestown Building t
pansion should stem directly from' continue the investment busines
its ambitious and aggressive 195§
of Swan-Rowley Co., Inc.
marketing plans. National Pool's
over
$300 billion this
American public finds
an
ever
greater expendible bal¬
ance
after mandatory payments
for
food, shelter and clothing.
This has meant that savings have
year,
Now
_
can
..
the
...
,
.
7
* ;
...
.
fi
same
time, "luxury" * purchases, current backlog is reported to be
subsidiaries, and will seek
With Lawson, Levy
over v $500,000
as
against.• under
up
latent
interest
in
several standby underwriting by competi¬ spending for travel, yachts, out¬
board engines, cameras, hi-fi and $100,000 a year ago. The business
( Special to The Financial Ghr'onicle)^
others, well-rated * £nd Offering tive bidding.
sports equipment — all these ex¬ is definitely seasonal,' with the
SAN
FRANCISCO,; Calif.
approximately similar'yields with
penses
have climbed to record first half recording the bulk of\ Charles O. Doud is now connecte
the Tesult that by the turn of the
With R. B. Sideckas
levels, and now exceed in the ag¬ sales and: earnings. The company with Lawson, Levy, William?
week little or nothing in: the way
(Special to The Financial Chronicle^
gregate our national spending for now has more business under ne¬
of remants remained over from
Stern, 1 Montgomery street, mem
These
SHREWSBURY, Mass.—Hormi- defense!
strong trends gotiation than at any time before- bers of the New York and Pacifi
these undertakings.
das A. Bousquet has become asso¬ augur well for the swimming pool in its
history, and believes this, Coast Stock Exchanges.
ciated with R. B. Sideckas & Co., industry.
People comprising its
Out-The-Window
augurs
well for sharp
further
47 North Quinsigamond Avenue. markets are learning to enjoy a
Testifying further to the im¬
♦
He was formerly with Federated modern new way of life and are sales growth in 1959^
proved' temper of -the Jnew issue
I like National Poor for-its po¬
steadily becoming more1 able to
Investors, Inc.
*
market was the
accorded this issue served to stir
sion of
*
'
'
...
,
speed with which
Texas Power & /Light Co.'s
offering moved out to investors.
The
successful
group - took
the
the
bonds down
a
on a
bid of 100.32 for
\Vz% interest rate.
afford that life!
Prescott Adds to Staff
(Special to The Financial Chronicle!)
CLEVELAND, Ohio —James G.
Parker has been added to the staff
Turning
this
now
company
tential future growth.
to National Pool,
is ~ in many ways
industry compris¬
set at
indicated
was
Digitized for
a
I expect its
rate of growth will preclude any
measurable payment of cash divi¬
unique. In an
dends for some years; manage¬
ing a great many small, strictly
regional, privately h e 1 d ■. com-» ment has; expressed lapproval. of
panies, National is H the largest stock dividends. In fact, I believe
company. It advertises and mar¬
price of of Prescott & Co., National City
Bank Building, members of the
191
for an
yield of
4.44%} to the buyer. Preliminary New York and Midwest Stock
kets its commercial and residen¬
inquiry indicated that the bonds Exchanges.
tial swimming -pools over a large
would' "he taken up quickly and
portion of the country. It is in a
Joins W. E. Button
most advantageous
|hp bppks closed.
position
to
COLUMBUS, Ohio —- Keith F. capitalize
on
the increase
in
Runner up bid 100.089 for the
Knight has joined the staff of swhnming pool popularity.
Its
same coupon rate provided a dif¬
W. E. Hutton & Co., 50 East Broad officers are
widely exoerienced in
FRASER of only about $2.30 per Street.
ferential
every phase erf the pool business,
Reoffering
,
,
the
company,
years
apply
pre-tax
more
a
should
for
some
major fraction of its
earnings
hack
into
the
aggressive,* expeditious de¬
velopment of the
bqsiiiess, mak¬
ing this for me a most attractive
long-term "special situation."
Volume
Number 5804
188
The Commercial and Financial Chronicle
,m
.
(2835)
RESULTS Of GUf TQUMUMmS
lift
Two With Frank Knowlton
(Special to The Financial Chronicle)
AT THE HU iGMVENTtOII
1958 Convention— Bal Harbour, Florida
;:
:
'V.
1st—Russell M.
-
*
2nd—Edmund £i
*
*
I. B.
A.
November 30-Dec. 5
Mem
of Christians and Jews for "dis*-
"
Ist^-James Ei Osborn; Hy DominickDominick; New" York
_
2nd—Thomas
j, Pendergrasty;Cdui^"^ Co;, Atlanta
*V,:'.
Senior Gblf Trophy—Men: :
.
•
.
*-
' 1st—Walter A. Schmidt, Schmidt, Roberts & Parke, Phila*\fs
' y" delphia. !
^
; y- 2nd—E3yin. K.- jPopper^LjM^^iW
St. Louis y > y
y;-
; Robert E. Christie, Jr. Memorial Trophy—Men;
«
.
('• ?
•"
•
.:;:5y
■
'
-
'
-
A
'
.k
Dean, Senior Partner. Sullivan &
Cromwell,
U,
n
Kick^s—18- Hoie^Men:
:.'!'.r:.;y-
*
No
■-
\
one
y'
y
y
v
*-■
.
''1
vi
.*
'•>
-
emtered the
'*
$
*■
' ;
.
'•
York"
",*-*■
*r\ *
H
"Vj*
•*.
,
.y
-
.;
•
..y
k-. •
,
<. i.
.
.jV.
-
1
t
■>
,
-
v,-,
»>y —' ^ry.:
Holes—Low Gross:
'
jKeresey, Baker, Weeks
1st—Mr. & Mrs. James F.
Mixed Foursomes—18 Holes—Low Net:
^
1
rlst—Mrs
& Co., N. Y.
>
r ' :
^
"
-
i";
.
the
feature
celebrations
James P. Baxter
3rd, President of
Williams College.
is
Kickers—18 Hole—^Women:
„
;
v:. t
v
,
iMINEOLA,
N. Y.
—
Variable
Planning Corporation is engaging
in
securities business from of¬
a
18 Hole
_/•
-Ruth Klein is conducting a se¬
TOurnament^Fiwt D
curities business from offices
East
86th
Street,
18 Hole Tournament—Second Hay—Women:
1st—Low
Groiss:
y1
1st—Low Net:
f;
'
r
.,
Detroit
y
.
'.V,
v
,.v .•
•/
y
•
;
Mixed
-
•
Dpubles:-
.
;
^
-\...y
y.^,
a
meeting of the Board of Directors* of
Limited, held this day, a quarterly
of
Seventeen
and
One-Half
Cents
(
17}'2c) per share (in Canadian Funds) was
declared payable on January 30, 1939, to share¬
holders of record at
December 30, 1958.
the
close
President
At
a
meeting of the Board of Direc¬
held this day, a quarterly divi¬
dend of 25^ per share was declared
on the common stock of the Com¬
pany, payable December 26, 1958,
td stockholders of record at the close
of business December 17, 1958.
Secretary
WAGNER BAKING
CORPORATION
The Beard ef Mreetort has declared
; a
CABLE
ROME
A
R
O
P
COR
T
i
O
dividend
the
N
January
,
Common Stock Offered
Milton
D.
Blauner
&
using
per
Stock of
Co.
of
business
share on the Common.
the Corporation, payable
Gerard A. Weiss,
Rome, N. V.,
CORPORATION
Secretary
A diversified closed-end
December 10,1958
Investment Company
Dividends Number 137 A138
and
Treasurer.
NORFOLK SOUTHERN
QUARTERLY DIVIDEND
12^
:
'
COMBUSTION
1959 to stockholders of record
24,1958. Stockholders may elect to receive
a
on
of business
contingent
A Quarterly, Dividend of Twen¬
ty-Eight,Cents (28^) per share
on all the outstanding stock-of
Combustion Engineering, Inc.
has
been
declared, payable
January 23, 1959, to stockhold¬
ers
Railway Company
2J/2% Stock Dividend,
December 31, 1958, to
on
the
on
of
approval of the In¬
no par
Joseph s.
Commission for
low
cost
ultrasonic
President
aaaaaaaaaa.
'9.
9
.
Joins Blyth Staff
P
IIVIREND NOTICE
CANADIAN PACIFIC
RAILWAY COMPANY
Dividend Notice
is
an
£
meeting of the Board of
of
on
seventyrfive /cent? per
the Ordinary Capital
shareholders of record at 3.30 p.m.
on
;
(speeija .to j^e financial chronicle)
♦
January 5, 1959.
By order of the Board.
\
-
.
>
The
v
have
Trustees
declared
mare
on
die
4
declared
puartprly dividends pn Pre.
ferred
tion,
Stock
payable tp stockholders
of record
a
January'lLB, 1950,
T
follows:
Roto
t
j
%
i
t
^Preferred Stock,
$2Spsrsslua *
4%%Sfekinf
fusdSfrls#
t
2#**
VP.
close of business Decern-
of
9
;
$U5
Preferred StocK
-
and one-half j-ents
<27 Hd) per share ,pn fhf coyuou
jpA|t|s at the Association payable
January ft, J959- $0th divi4cn^
e in «hacehol4efauf/en¬
Johnson, Trtssvrp
DmhrU'W
as
1
Rsts
far-
$100 par value'
5% Series
S-2-59
Ot
of jtwency-sevcq
ber 24,19».
i." A
'
Nv-
fhc Association payahle Jpnuary
4, 1959. and $ quarterly dividend
♦
this jwcrpora-
amojUATrvji
CONV£RHRLi pKfrmUtD SHARHS
;
Sd Directors
quarterly dividend of $1.12*4 per
ordata
T.F,Turner,
r
COLUMBUS, Ohio—Richard E;
Secretary.
Chalmers
now affiliated with
Montreal, December 8, }95$.
Commonwealth Securities Corpo
-
OnDecemb«:10,1958, the Board
CDMMDM MV.pCNAft DP*. 4?
share
"
England Has
Electric Association
nUKRRU AMD
dend
With Commonwealth Sees,
New
ami
Directors held today a final divi¬
(Spo^ 4»TJBirii^ciAl.C8*ONKax)
•
FINANCE CPrPP8ATION
At
ultrasonic,: system designed
.expressly, for; high speed, /quality. ration, 30 £a<^ Town Street.
,
f
■
-
cleaners.-. At
blaster". The Narda **SonWaster"
Secretary
•v
yalue Common
Henry Oetjen,
Corrigan is
present the company manufactures
a line of generators and comple¬
menting
transducerized
tanks,
under
the
trade name
"Son-
Stout
Vice President and
Stock for that purpose.
The;. Narda"
pany."
on
in cash. No Iractipfi&l
Norfolk Southern Railway
Company's
MINNEAPOLIS, Minn.—Patrick
Stock was declared in respect of
now affiliated with
The Narda. Ultrasonics Corp., is
Blyth & Co., Inc., Northwestern the year 1958, payable in Canadian
funds m February 27, 1659, to
engaged in* the mass production of Bank Building.
'
or
shares will be issued.
the issuance of additional shares
.business December 26, 1958
Otto W.Strauss
Vice-President and Transitu-'
the
-
taken at average market price
January 5, 1959,
ffAClflC
(Special to The Financial Cmomciz)
-selling
stockholder, will apply $145,202 of
the.net propeeds. of the offering
to-satisfy a note held by the comCorp.,
Special Capita) Gain Dividend either
in stock,
December 19, 1958,
terstate Commerce
of record at the close of.
price of: $6^0 per share. - *.
: TheJ company
will receive no tjic New York and Midwest Stock
Exchanges. He was formerly with
part of the proceeds from the sale the Illinois
Company.
Microwave
December
folk Southern
Dividend No. 221
sol¬
solutions
1
payable January 15,
are
declared
payable
,
>
share
'"J
Both dividends
stockholders of record at the close
joint managers; of an tmder-r
CHICAGO, Jll. — Leonard V.
writing groups yesterday (Dec. 17) : Lockhart
has become connected
offered 60,0^diares of The Narda'
with Lamson Bros. & Co., 141 West
Ultrasoniesr Corp., -eommon ,vstock
Jacksott' Boulevard, members of
of the stocks However,
!
share
pejr
'
The Board of Directors of Nor¬
rat a
•
per
70.36^
as
:
>
NATIONAL SHARES
on
tNBWEEINNG
With Lamson Bros.
^and MichaelyG. Rletz & Co., Inc.,
attkhelders
December 19, 1953.
J. V. snWSNS, Secretory.
Stock Dividend
of detergents, alkalines or acids.
Inc.;'
;
an
payahle
of Rome
January 3, 1959, to holders of rec¬
ord at the close of business on
December 22, 1958.
&
emulsions,
or aqueous
te
IPSft,
share
per
Stoeh
SPECIAL CAPITAL RAIN DIVIDEND
''.-y.
2nd—Mrs. Joseph R. Neuhaus—Henry L. Valentine
(Mrs. Neuhaus—Underwood, Neuhaus & Co., Houston)
(Mrs. Valentine—Davenport-& Co., Richmond)
vents, water
2,
Dividend
Board of Directors
$1.75
of
preferred
7%
RAILWAY COMPANY
'
■'
Jr.," Alex. Brown & Sons,
cleaning,
t
,
COMMON DIVIDEND No. 330
has declared con¬
secutive Dividend No. 79 for 25
NOTICES
; Baltimore
Narda Ultrasonics
January 2,
•
,
Treasurer
Vcf record
V'-r' y DIVIDEND NO. 165
..
dividend
MATCHES
1st—Mr: & Mrs. F. Barton Harvey,
payable
to stock¬
December 10, 1958
December 10, 1958
C_f; Courts MemoriaWMen's Doubles:
1st—F. Barton Harvey, Jr.,Alex.v Brown jk Sons, Baltimore
*'
Joseph P. Short,! Arthurs, Lestrange & Co., Pittsburgh
,2nd—Wallace C. Latour, Merrill Lynch, Pierce, Fenner
Smith, New York y '
.
•
Henry L. Valentine, Davenport & Co., Richmond
both
Arthur W. Moffatt
4The Oarlock
Malon
^
;
,
the Com¬
on
February 2, 1959
clifford w. michel,
TENNIS..
stock,
mon
Packing Company
Dome Mines
.
share
Cable Corporation
At
'
cents per
1959.
79th Consecutive
DIVIDEND
A. Parcells & Co.,
■•2nd—Low-Netf-—y-:.t?•.i;-• ;W'.y\ ; - •
W..Linton Nelson, pglgwarg; Distributors, Inc:, Phila¬
delphia
■
-•
r
■if-
at
December 8, 1068.
'
Boqrcl of Directors
has
declared 3 dividend of
37}^ cents per shfgc^oh the
Preferred stock and 62Yz
holders of record
The
■_
.
Quarterly Dividend
The
for¬
York
DOME MINES LIMITED
Mrs: Charles A. Par cells ;jyyCharles
.
,
1
•
was
DIVIDEND NOTICES
cents
2nd—Low Gross:
.
New
City.'":"
!t. y"'"y! -..y.'"
-
Mrs^ Sewell S. Watts, Jr., Baker, Watts & Co., Baltimore
Mrs/Edwin H. Herzog, Lazard; Freres & Co., New York
v.
I
r-
■
He
Opens Office in New York
64
•i
CORPORATION
214th ConMcvtiv*
i-
■
'*'y.+
UNITED SHOE MACHINERY
D.
Merrill
Fenner & Smith,
H. B. Pierce,
•
*
with
616 Madison Avenue.
:
fices at 180 Second Street.
.Winner-yMrs: Stewart Ail)unn, C. J. Deyine & Co., N. Y,
•
JiOUSOn
Robert
—
now
Lynch, Pierce,
tors,
.
,
Ohio
TOLEDO,
Johnson
:•
.
Co., Chicago, 111. This ifar¬
marking the 30th Anniversary of
the Conference which Was organ¬ merly with Goldman, Sachs & Co.,
ized in 1928 to promote good will and Hayden, Miller & Co., "of
and understanding among Protes¬
Cleveland.
tants, Catholics arid Jews. Dinner
proceeds obtained from the. sale of
yForm; Variable Planning
Henry Cate—Renouf Russell
(Mrs. Gate, The Keystone Company, Boston)
y
(Mr.; Russell, FySv>Moseley & Co.-, Boston>
.
.
2nd—Mr. & Mrs. ^orge • S. Kemp; Jr.7, Abbott, Proctor &
Paine, -Richmond
'
' <•'
'■ r'\
y;'.
;
'y
i
^
2nd-rtMr.: & .Mrs. William G. Harding, Coffin & Burr Inc., Boston
^
.
organization in; expanding its pro¬
gram. y
y "
' • y.
Presentation of the awards were
made by Maurice Newton, Hallgarten & Co.; Mr. Dean; arid
!
Foursomes—18
re¬
maDo
was
(Special to The Financial Chronicle)
tickets among members of the fi¬
nancial community will aid the
2nd—Only the above four played in this tournament
Mixed
of
one
;'y T-?-- '-&/:•
;
.
Conference,
Attended^ by 800, the event was
^
•
;
ta &
With Merrill Lynch
toastmaster.
dent of the" National
the gudst speaker.
.
"4.5f"-
the
was
Lewis, Webster Jones, Presi¬
was
y'V. ■ -yy:■"
'.M/t-. •
1st—WalterB. Levering, Carlisle & Jacquelin, New York
•
Albert Ry HughesyLord, Abbett & Co., New York
• :
T. Cv Henderson,: Tv C. Hendei*son 8c Co., Des Moines
*/.
Mason B; Starring, Jr., A. C. Allyn & Co., New York
?■
-
■
y
y.y
-y
tOurriameriiy
FourBallFoursome—-Men:
1
r.-f- «•
y
2nd-—Henrj^ Strayitzy Swiss American
r
i[
£*
;
New York
HaridJrap—Secori^D^
.«
y
k «
1 st^ThOmkk Lynch; HI,; Mootre; jLeonard & Lynch, Pittsburgh
-y, :
.
1
■
,
K.'Popper, I. M.vSimon^& Co., St. Louis y V
y'
,
*
.
(par $1)
cently through Cruttendeh, Podes-
(Special to The Financial Chronicle)
ing was completed, all of said
tinguished service in the field of
hprnanvrelations- v at a dinner in
PASADENA, Calif.—Russell G, shares having been sold at $4342%
their honor sponsored by ihe ori- O'Connor has
joined the staff of per share, it was announced oa
ganizatioh 'last Monday, Dec. 15, Oscar G. Werner &
Co., 3870 East Dec. 16.
«*
at the Waldorf-Astoria in New
Colorado Street.
Mr, O'Connor
York City.
^ i;
vEugeney S. Hooper, President, was formerly with Shearson, HamDIVIDEND NOTICES
Manufacturers Trust Co:, served as mill &Co.
v
Dr.
;:2r^WiidrisVeartev Mal^^
-18 Hole
:
r :
• '
1st—Elvin
;
„•
stock
mon
„
; 18 Hole Handicap—
,
distributicmol!
Chairman of the event. Arthur H.
1; y. 1st—Ernest Ch Dorbrits, Moore,
Leonard & Lynch* Pittsburgh
=J> * 2nd-^-Robert G. Rowe, Stroud' &
Cov,. Philadelphia
#
secondary
,
•
*
Joins Oscar G. Werner
A
30,100 shares of Ftttrol Co^. 0Qk&w
.
y
--
Donald E.
—
JHoppe and Joseph F. McCullough
Budinger, Vice-Presi¬ are now with Frank Knowlton
&
dent,- Bankers Trust Co.; James
Co., Bank of America Building,
Coggeshell, Jr.^ President, First Both Were
formerly with National
Bpston Corp.; and Jacob C. Stone, Investment
Corp.
Sernor Partner, Asiel & Co,, were
cited by the National
Conferen^b
John M,
Ergobd, Jr;, Strbud'^fe Co., Inc.; Philadelphia B>rne;-Fhelps^F^n!% & Co. j New York' •> ^: t
Canada trophy-
of
—
OAKLAND Calif.
s. c.
0
9 9999
SSVNOfM,
i
The Commercial and Financial Chronicle
J26
the fifth best sales year
However,
automobiles.
be
IUhind-the-Scent Interpretation*
•
•
•
with
year
and
a
Product,
for new
it will
X. f/ft'
Furthermore,
Washington, d. c.—Near¬
liorizon
points to
there
as
both
; lion
next
picture
is
1958.
the
but
summer,
;
'
much
of
Chamber
the
deficit
Commerce
press,
generally.
1959
them, there is a
growth ahead. It
right now, because
tomer" is going to
!
ing for
chants
income
at
is
personal
peak:
savings higher than
the
current
selling
holiday
and
In
the
there
will
be
fruits
more
as
of
Association
There
been
has
in;, total
Food
retail food store
currently run¬
the same period a
year ago.. Another increase ap¬
pears ahead for 1959. Meantime,
the paramount problem facing
over
the food chains is the need for
"increase
in
productivity"
be¬
cause
about half of the cost of
food
chain
organization
to
cant
to
a
do
advance
There
is
in
the
was
expected
an
billion, reflecting the decline in
new projects getting under way
A
15%
local
increase
in
' Chances
tion:
creases
in schools and
sewer
and
facilities.
The
stepped
highway construction may
reach $6.2 billion next year, the
greatest in history, and increase
up
observa¬
good that
are
works
water
this
made
public
highway
state and
projects.
There will also be moderate in¬
of a steel strike at
Commenting on this,
Story
45 cents.
thereafter
this
(potential strike) will start
playing a role in steel buying
quite early in the year, but its
major impact will probably not
Business
for
three
four
or
•
military
New
conducted
Report
Starch & Staff
construction
line, it
seems
largest in peacetime history,
Overall, the year ahead should
be a favorable one for growth.
reason¬
able to expect that there will be
fireworks in June."
that with
production and employment ex¬
pected to be appreciably higher
In 1959 than in 1958, greater
credit demands appear ahead.
steel
cession, although over the hill,
is likely : to be a bit irregular.
Nevertheless, increased demands
duced
The
economists
dence
—
that
the
for credit from all types
rowers are ahead.
As
bond
ord
treme optimists
of bor¬
high
in
houses and bankers
volume
pear
of
bonds
the
Digitized for
as
.
even
.
history.
000,000 tons
it
It
to
is
hard
115,000,000
Printers'
Books, 210 Gar¬
Avenue,
New
London,
«
Contemporary
Curtain
Wall;
Its
Fabrication and Erec¬
Hunt, Jr.
—F. W. Dodge Corporation, 119
West 40th Street, New York 18,
N. Y., $12.75.-
Suppose
tion—William Dudley
Economic Comment, No¬
articles
with
1958
vember
"Some Reflections
oil
a
Trip to
the Soviet Union," "The
Cyclical
on
of Investment
Nature
in Retail
for the
Automobile
Industry,"...,
Facts About Jhe Ca^Sdian Ex¬
change Rate," "Pricing Behav¬
ior: Economic Theory and Busi¬
ness Practice,"
etc.—College of
Inventories,"
"Outlook
istration, University of Illinois,
Box 658, Station
curity
has
him
of
a
a
man
month
a
bought
had
ago
se¬
a
which he
on
now
sizeable profit. Conditions make
rather uncertain
the
stock.
equivalent
to
For
a
to the
as
future
premium
a
small
cost
his
of
part
profit, he might buy a Put contract
for
thirty,
months.
days
sixty, ninety
Through the
jjjj
or
terras t>T
this
«m«ratt"lirV5ulFinsure ~his profit
for
the
duration
and at the
same
advantage
of
the
a
of
the
Put
Optioo
time be able to take
further
in
advance
stock.
confi¬
Gross National
express
A, Champaign,
Ask
Booklet
for
Use
How
on
to
Options
111.—paper,
Economic
News
in
English — $3 per
year — Economic News Service,
Ul. 28 rijna No. 13, Prague 1,
—
Rler, Schmidt* Co.
M*M»SRS »UT & CALL BROKERS &
'20 Broadway,
ASSN. IMC
DEALERS
BA 7-filOI
N. Y. 5
Czechoslovakia.
Do's
and
Don'ts
and
keepers
American
for
Bank
Proof
Bankers
Book¬
Clerks
—
Association,
TRADING MARKETS
;
•
Heywood-Wakefield
Indian Head Mills
!
W. L. Maxson
j
Morgan Engineering
National Co.
Carl Marks
&
Ho. Inc.
Southeastern Pub. Serv.
United States-Envelope
FOREIGN SECURITIES SPECIALISTS
it
and
If the present forecasts are
approximately
accurate,
1959
would not be the best, or even
PROTECT PROFITS
Design,
,G*
100,-
-
PUTS TO
Conn., $4.95.
year;
tons
Limited, 1853 Ham
Street, Regina, Sask., Can¬
ada—paper—on request.
ilton
Botany Mills
see
see
Leader-Post
Ink
the:
20 BROAD STREET
moreJ'
Good Auto Outlook "
.
to
easy
perhaps somewhat
i;
to
C.
Sales Essentials—
Lists of
Check
it going as
falling below
as it did this
is. relatively
rising
past
see
Spells Ruination—A se¬
reprinted from the
"Regina Leader-Post" and the
ries of articles
Street, New York 17, N. Y.
(paper).
120,000,000 tons, highest
production
These public bodies ap¬
likely to borrow even more
heavily next year. The United
States Treasury will toe going
to the moneys market quite Often
FRASER
throughout 1959.
year
Inflation
Daniel;
by
terms of tonnage pro¬
next
Practice, 210
Avenue, New London,
Conn., $12.50.
American Cement
pessimists PuCit At 196^0,000
tons minimum, while the ex¬
already know, the states and
municipalities, counties and districts,, have been issuing a rec¬
.year.
in
Bureau of Business
Outdoor Ad¬
Continuing, he said: "But ig¬
noring the effect of a steel strike
and summing up the outlook for
The recovery from the 1958 re¬
as
it has been stated here before.
to
Communicate Policy and
Procedure—Joseph D. Cooper-
42nd
Service
management
How to
vertising Incorporated, 60 East
partment of Defense will be the
of
S.
Remembering Outdoor Posters—
the United Steel Workers,
the
expected heavy demands
from them in June, and the de¬
termination
U.
—
$7.50.
Czechoslovak
hold the
Columbia
Characteristics of Urban Children
by more than 20% to $1.5 bil¬
lion.
Expenditures by the De¬
Sherman Adams, Deputy
Manager of the American Bank¬
Elmer
Inc., 330 West 42nd Street,
York 36, N. Y.
(cloth),
pany,
:
be seen until the second quarter.
In the face of current posturing
;• E.
of
-
The missile base program may
increase
by
—
Commerce and Business Admin¬
years.
trict
Department of Labor, 341 Ninth
Avenue, New York 1, N. Y. (on
request).
"Saskatoon Star Phoenix"—The
Forecasting
Bratt—McGraw-Hill Book Com¬
Current
in 1958.
Perhaps the biggest
threat
hanging over the industry is the
Mr.
de¬
Services,
Plaza, New York
20, N. Y. (annual subscription),
field
1958, but the drop has been con¬
siderably greater than was fore¬
cast. An additional 10% drop is
expected next year to about $2.2
January.
mid-year.
expanded
cline in business construction in
a
than existed at the end of
possibility
The
highway program.
Possible Steel Strike
/
Association, said
-
building.
religious
construction will pace
increase in Credit Demand
ers
car
expected
1958.
til
business is payroll,
.
Railroad
also
capacity has been added
past year, but the new fig¬
ures will 00t be announced un¬
sales with sales
ning 6%
steel.
are
and
the
longtime
a
culverts
rods,
residential
in
rises
next year's in¬
in .public con¬
struction, jumping some 16% to
$17.4 billion, paced by a signifi¬
tons
Chains.
rise
be
World War II. Another 5,000,000
.
with
of
will
more
1958, in the opinion of Wallace
N. Flint, Vice-President of the
National
part
capacity now to
produce about 141,000,000 tons
annually. This is 45,000,000 tons
packaging.
However, the
price of the raw products will
billion,
$35
crease
There
and
tliejams
under
moderate
jump from the low level orders
vegetables. There might be a
slight increase in some items
due to higher distribution costs
in¬
by 3% to 4%, for a total
major
of
and
construc¬
is expected to
1959
in
crease
big orders for wire mesh,
orders
is
price. There will be larger meat
supplies and, unless there is re¬
curring freezes in the Far South,
there
tion
industrial
and
Private
and
structural
stores across
good news.
The outlook is for a stable food
grocery
land
expectations is the
reinforcing
pared with 22 in 1957.
the
construction.
A fac¬
just
many
com¬
as
residential
to
6% in¬
a
Information
45 Rockefeller
This is particularly true relative
ularly for substantial growth in
highway
construction
with
Thanks¬
between
Christmas
days
giving
improving
The makers of laun¬
been
.v
Publications
Government
—British
;! cast during the next year. The
; steel industry is looking partic¬
23
season
dollar
five-
a
including New York,
Jersey, Pennsylvania, Debaware, Maryland and the Dis¬
area
Garfield
of construc¬
era
new
25c.
British
predicted that the 1959
volume of construction
is
It
in housing starts fore-
increase
advertising
are
a
York 1, N. Y.—
the
However, much of the new con¬
struction will hinge on credit.
in these
tor
a year ago;
heavily
and offering excellent values; a
favorable calendar break gives
stores
start of
signalize
should
year
Statistics, U. S.
Department of Labor, 341 Ninth
tion growth.
which
as
in 1959 over 1958.
crease
portunities for Officeworkers—
Bureau of Labor
available for
data
Corpo¬
Dodge
Automation and Employment Op¬
Avenue, New
ing
state
West 40th Street,
York 18, N. Y., $8.95.
New
6%
ex¬
dry equipment expect
reasons:
a
the
Employment and
New
119
ration,
will amount to about $52 billion.
have
since July.
said there
Personal
Association,
series of
are a
amples,
pas¬
W.
Record"—F.
activ¬
construction
State
to
"Architectural
of
Editors
the
Dormitories—by
and
Apartments
ity in 1959, the biggest jump in
Furthermore, if past
patterns and long-range fore¬
casts by economists hold true,
Sales of
freezers,
laundry equipment,
and
kfns, Executive Vice - President
of
the
National
Retail
Mer¬
a
ranges,
refrigerators,
J. Gordon Da-
sales?
improving rapidly.
is
the
for
responsible
is
in
Farmer; etc. — Foundation for
Economic Education, Inc., Irvington-on-Hudson, N. Y.—50c.
Earnings Statistics—Report list¬
four years.
outset,
felt the recession at the
of last year.
What
increase
there will be
are
;
Clock; Liberal or Conservative;
Prophet, de Tocqueville*
Educational Trends; The Rebel
Guide
of
dications
in 1959, but is hop¬
even better year.
The appliance industry,
Yuletide sales at least 3% ahead
increased
an
million
5.5
of
stabil¬
America, through
Manager William G. Dooly, after
a survey of contractors in every
section of every state, says in¬
Steel, is expecting the
automobile industry to produce
forecast
:
With three-
up.
(paper).
The
continue
labor peace and
tractors
Story of the Institute of Scrap
its
N. Y.
Freeman, December 1958, contain¬
ing articles on Turning Back the
Associated General Con¬
The
&
Iron and
senger cars
,
of
one
ity apparently lies ahead.
S.
William
said
.Steelmakers,
of
era
new
is underway
"Queen Cus¬
make Christ¬
mas
this year the biggest on
record for the nation's' depart¬
ment and specialty stores with
,
Bright Construction Forecast
Iron
tenth, edition —Tax
Foundation,
Incorporated,
30
Plaza, New York 20,
N. Y. (paper), $3.50.;
*
:
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital Foreign Bondholders' Protective
Council, Inc. — Report,
and may or may not coincide with
1955
the "Chronicle's" own views.]
through 1957 — Foreign Bond¬
holders' Protective Council, Inc.,
90 Broad Street, New York 4,
,
1958, but it does not expect
to
be
spectacular.
The
over
forecasts, and
to challenge
reason
no
Scrap
not
does
and
up
relative
would increase.
of
Finance,
union contracts negotiated,
year
Steel is convinced the economy
their
in
going
means
of Govern¬
of 1959 will show improvement
reasonably
If the experts are
there is
automobile
What is the outlook for steel?
Institute
Facts and Figures on Government
■
viding the cost of operating an
A
The
Institute,
457
Nassau
Street,
Princeton, N. J.—paper—$4.
in the future, pro¬
tial markets
Prospects for Heavy Industry
the conference.
correct
which
year,
holdings
ment securities
number of
economists and experts in their
respective fields participated in
lic
next
bank
that
brought
out
some
meaty facts for the na¬
tion's businessmen;and the pub¬
for
on
ing system will be called upon
to finance part of the Treasury
?business conference out¬
look, conducted by the United
probably will be heading
close to the $500 billion mark,
assuming of course there are no
major wars;" nor catastrophies.
growth,
and
the
industry
is
looking forward to rich poten¬
its hands. Chances are the bank¬
A
States
problems
big
mighty
some
than
brighter
; .4
and Worker Compensation—Tax
from now, it means
and services by
year
Rockefeller
automotive
been
has
a
1960
trucks
1,107,176
The history of the
industry
taken place since
World War IL The Treasury has
overall
and
cars
.
Effect of Tax Policy on Executive
that total goods
and buses.
This will be the first
dar year.
time this has
disturbances
labor
116,948 cars and 1,206,266 trucks
buses, and 1957, with 6,113,-
344
12 East 36th Street, New York
16, N. Y. (paper),. $1.
the
If GNP reaches $475 bil-
lion.
dealers
and
first half of the calen¬
ing the
negative signs,
potential steel strike
a
other
and
Sure
1959.
some
are
such
decided up¬
a
business in
in
turn
Adams
Mr.
as
pointed out to the business con¬
ference, Treasury expenditures
will exceed revenues even dur¬
at
$450 billion, should
swell to $470 billion to $480 bil¬
249,090 trucks and buses; 1950,
with 6,665,863 cars and 1,337,193
trucks and buses; 1953, with 6,ly everything on the economic
running
now
rate of about
operating profitably.. It would
compare
with such years as
1951, 1954 and 1956. The indus¬
try's four biggest years were:
1955 with 7,920,186 cars and 1,-
/f
frtai tin Nation's Capital
healthy
manufacturers
on
«
Thursday, December 18,1958
...
(2636)
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