Full text of Commercial and Financial Chronicle : December 25, 1958, Vol. 188, No. 5806

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ESTABLISHED IS39

Reg. U. S. Pat. Office

Volume 188

Number 5806

New York

-7, N. Y., Thursday, December 25, 1958

Price 50 Cents

Copyj

EDITORIAL

It
T

Representative Wright Patman, an inveterate
enemy of sound money, is assuring the country
that he will have

make

for

the

Federal

By SUMNER H. SLICHTER*
Lamont

Unless action is
promptly taken, Senator Byrd predicts
$300 billion Federal debt is in the offing and there will
be a $400 billion Federal
outlay in next five years—at
the present rate. The Senator confesses he still cannot
understand the President's $8 billion

Reserve

else who has had

anyone

The Threshold of 1959 i

(D. Va.)*

Senator, United States Congress

opportunity this winter to

life; miserable

authorities, and

By HON. HARRY F. BYRD

any¬

thing to do with higher interest rates. He has
long wished for such an opportunity, and he may

extreme monetary

and organized labor reform

get it this time. Virtually all influential members
of his, the
majority party, have paid their re¬
spects to all and sundry who put an end to the

difficult

policies introduced by the New
by the Fair Deal. It is often
know just how much of what ex-

draws the conclusion that the
better business outlook may induce a modest business
investment increase in 1959 and €HP will he about

state

right-to-work laws and efforts

favoring doing
something about it now that his party is in con¬
trol of Congress
again and making ready for the
1960 elections.-

;

{ ~

tributed to

These

which
5

are

is the

of the dollar is

see

•",';/

Continued

such

those

dustries

new

income

era.

all-time, highs.

While

than

But there is

address

Sen.

Chicago,

controlling requirement,
The system is based

one

Continued

111.,

Byrd
Dec.

before
11,

the

Illinois

page

Manufacturers'

1958.

made

sales

new

Slichter

that
a

year

amount.

reduction

has

been

going

inven¬

fori

to be coming to

seems

halt, though in /October there

still
of
Sumner H.

small

trade

tories.

was

drop in the book value
manufacturing inven¬
ratio of manufacturing

and

The

inventories to

new

orders is exceed¬

ingly low. Business is still in a cautious mood, and even
expectations of substantially higher sales in 1959 had
-

be over-looked.
<

Association,

enterprise democracy is
greatest system the world has

the

evolved.

over

Our free

and it must never

drastic

tories

which free

retail

the seasonal

The

enterprise democracy should thrive,
and proceed soundly and construc¬
tively for the good of all mankind.

Hairy F. Byrd

ever

elements

and

Employment in No¬
vember dropped by moderately less-

have unduly exploited our
resources, they are still tremendous.
Our productive know-how and ca¬
pacity are yet unsurpassed.
are

October,

of
industrial
production was the
largest in four months and personal

may

These

in September and

good progress in November
and December. The rise in the index

atomic

great increase in population.
we

«.

seriously
industry

made

doubt that devel¬

Summary

and by strikes in that and other in¬

addition, this country is experiencing

♦An

on page

The expansion of the
economy, which was
retarded by model changes in the automobile

country's great-

the threshold of

upon

taken pains to expose some of the fallacies often

indulged in by the easy money cranks in both
parties, and warned of the consequences of poli¬
cies which are about the
equivalent of printing
greenbacks. His is a tale of real meaning, and the
words are strong. We have felt it our
privilege as

productivity. Disbelieves our prices will rise
rapidly than those abroad.

he has

and

the

of this

■1

*This

-j
article

economic

Continued

conditions

the

United

page
States

was

prepared for publication in Japanese to the Nikon Keizai Shim bun of
Tokyo and made available to the Chronicle by Dr. Slichter.

SECURITIES NOW IN REGISTRATION
Underwriters, dealers and investors in corpo¬
securities are afforded a complete picture of issues now
registered with the SEC and
potential undertakings in our "Securities in Registration"
Section, starting on page 30.
—

DEALERS

rate

U. S.

State, Municipal
and

Government,

State and

Municipal

UNDERWRITERS
and

Securities

STATE

and

623 So. Hope Street, Los Angeles 17,

DISTRIBUTORS
-

telephone:

HAnover 2-3700
.

'0'

: -

;-.i

SECURITIES

•.

"...

■

Bonds and Notes

Members Pacific Coast Exchange ' v;..
BOND DEPARTMENT

Offices in Claremont, Corona del Mar,

Encino, Glendale, Hollywood, Long Beack,

bank
BOND

Associate Member American Stock Exchange

CORN EXCHANGE

ST.,N.Y.

Burnham and Company
CABLE.

•

CM 4-1400

TELETYPE NY I-22M

COBORNMRM

San Diego, Santa Ana, Santa Monica

OF NEW YORK

Inquiries Invited

STOCK EXCHANOES

MEMBERS NEW YORK AND AMERICAN

15SROAD STREET, NEW YORK 5, N. Y.

/ '

BomI Dept.

THE

Pasadena, Pomona, Redlands, Riverside,

THE FIRST NATIONAL CITY BANK

DEPARTMENT

30 BROAD

California

Housing Agency

;

Members New York Stock Exchange

BONDS

INVESTME NT

chemical

Public

Lester, Ryons & Co.

MUNICIPAL

Teletype: NY 1-708

Southern

Chase Manhattan
BANK

■ California Securities

New Tork

Correspondent—Pershing A Co.
>'

Undervfriter^

•

Dealer

Net

Distributor
Vv* '

{•'

T.L.WATSON &CO.
;

ESTABLISHED

Active

Markets

Dealers,

Banks

Brokers
t

westc0ast

1832

;•

(Rights Expiring March 17, 1959)

.'We offer to buy these rights
current

transmission co.

Members
New York Stock

-American Stock

Block

Exchange
Exchange*,

;

25 BROAD

FIRST

goitfhwett COMPANY

Inquiries

CANADIAN
,

Invited

PALLAS

•"

STREET

PERTH

AMBOY

the

tnarket.

for California's
-

Direct private wires to Toronto,
r

Montreal,

Expanding

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria and Halifax

Economy

| MUNICIPAL BOND

DIRECT VIRES TO MONTREAL AND TORONTO

.NEW YORK 4, N. Y.

BRIDGEPORT

DEPARTMENT

Teletype NY. 1-2270

Goodbooy

Co.

MEMBERS NEW YORK STOCK EXCHANGE
r

-"'"/if

Maintained

and

115 BROADWAY /
NEW YORK

1 NORTH LA SALLE ST.
CHICAGO

associate

should capital

unem¬

rocketry, etc., have placed

energy,

to it that the integrity

fully protected. In doing

There

opments

It is to the eternal credit of the Chairman of the
Board of Governors that he has called in clarion

public to

against

source

ness.

read the

1958

analyze the
indisputable
fact that free enterprise democracy
occurring

The outlook has probably not con¬
their ease of mind, and
naturally so.

tones to the

federalize

above

Russia's economic projections and suggests three
ways "i
to step-up our
slowing rate of increase in production

With regard to the

spending remain un¬
changed from 1958. Urges non-complacency towards

time when prudent men should

are

changes

Evidently, Federal Reserve authorities

newspapers,

well

ployment insurance.

$468

billion—with end of the year annual rate at about $580
billion—in 1958 prices. Adds GNP in 1959 still will be

.former, he specifically calls for revaluation of military
spending, sharp cuts in foreign aid and domestic-civilian
expenditures, and, as for the latter, opposes ruling out

President Truman has to
say is to be regarded as
politics and nothing else and how much is to be
taken as his real views and intentions. But he on
than one-occasion has had a
good deal of
criticism to offer of those who
caused interest
rates to rise and is on record as

measures.

leading American economist's analysis of the impor- ]

tant economic indicators

budgetary hike in
January, 1957, following the two years when the budget
was
balanced, and warns of the dire consequences of
deficit financing. He proposes a two-fold
program for
the coming new Congress
consisting of budget balancing

Deal and perpetuated

University Professor, Harvard University

Member at

Exchange Plact, New Tork 5, N. T«

fal. WHitehall 4-3161

DEPARTMENT

Itmk of America

American Stock Boh.

NATIONAL 'savings

ASSOCIATION

Tele. NY 1-702-3
.

300 Montgomery St. Sen Francisco. Calif.

The Commercial and

Financial Chronicle

Thursday, December 25,1959

...

(2698)

For Banks.

Brokers. Dealers

"HANSEATIC"

nationwide private wire sys¬
tem, reaching banks, brokers and
dealers all over the country, can

Vice-President, Research,

for you.

Argus Corporation Ltd.

are

then

and

"Hanseatic."

120 Broadway,

1920

New York 5

sits

•

SAN FRANCISCO

"THE MOST."

There

RIGHTS

Members

York Stock Exchange

American

Stock

Exchange

REctor

2-781S

Trading Interest In

American Furniture
Bassett Furniture

Industries

Life Insurance Co. of

Va.

Commonwealth Natural Gas

STRADER and COMPANY, Inc.
—5-2527-—-

LD 39
Private

Wire to New

York City

ket

value is

food

Forgan

Co.," of New

&
a

"detailed ac¬

largest com¬

chain

Dominion Stores,
sweeping Canada.

Hub

the

estimates shown here.

;r:r

4^,

cake, two
noted. .- of
the first is the fact that,
many investment compa¬

trimming to the
should be

which

unlike

nies, Argus operates at low

JAPAN feS€

STOCKS
For

u-t.

current

Call

covered

present

and then

the

value

bottom

levels

Center.

Toronto

incidentally,

(Canadian
dollars).
Net
asset reputed to be growing at a fasten
value, however, is the "batting rate than any city in either the
44
average" that most fund salesmen United States or Canada.
like to

's-saving*

has

use.

had

value

asset

In this respect, Argus

impressive rise. Net
was
$10.04 in 1948,

and is noted at

$52.07 in the latest

Report
Supplement of last November—a
handsome 500%
gain.
Not only
that, but the stock is selling at
Wiesenberger

MUNICIPAL BONDS

discount of about 46%.

the

l*f

ment

VIRGINIA

study-shows a cost
figure for 1957 of only 0.24% of
average net asset value and 4.75%
of total income.
Comparisons are!
said to be odious and so I shall
generalize by saying that these
costs are
startingly lower than
costs
of
representative
mutual
funds or Qlosed-end trusts."A sec¬
ond and significant point is that
Argus is highly leveraged. Capi¬

CAROLIN

&co

RICHMOND, VIRGINIA

LAWRENCE

discount that

"Investment

lives

buys

Inc.

Affiliate of

;

111

Investment Bankers

Burns Bros. & Denton
INC.
37 Wall

Street, New York 5, N. Y.'
,.

...

«•'

;

Underwriters—Distributor* -

V/Dealers "
:

W*';

Investment Securities

Canadian and Domestic

Opportunities Unlimited
Write

Association of

-(J

Broadway,N.Y. 6COrtlandt 7-5689

IN JAPAN

'New Orleans, La.

Member:- National

Tokyo, Japan

Investment-Securities,'
.

Yamaichi Securities Co., Ltd.

Brokers

for

our

Monthly Stock ^

-Digest, and our other reports.*
that give you a pretty clear
^

picture of the Japanese
economy as a

whole.

Nomura Securities Co., Ltd.
61 Broadway, New

York 6, N. X.

Telephone: BOwling Green
This

is not

orders for

9-0187

;

offer or solicitation for

any

particular securities .1
.

•

'■

]

magazine1
among

the 76

Americans

having
amassed

wealth

$ 7 5,6 0 0,000
and up,' found
more

oil

any'man

the

write

of New York,

SMART

than

that

Company,"
sufficiently large In a ten-year record, Argus has men.
block in a company to exercise raised its equity-investment earn¬
Hiawatha's net 1957 production
some
influence on management, ings from about $2.8 million in amounted to 605,221 barrels of oil
but
usually
lacks
control and 1948 to $5.9 million in 1957. This
in nine States
and 2,441,867,000
rarely interferes with management year, the figure will be about
matters. A close touch ana guid¬ $6.5 million, close to the 1956 high. cubic feet of gas in three States
ing hand is maintained, however, After provision for preferred div¬ with an additioinal 43,591 barrels
by the presence of an ""Argus idends, "E-E," or equity earnings, of distillate. In the main producMan" on the board of each com¬ will come to approximately $3.80
Continued on page 29
pany in which an interest is held. per Argus common share.
Argus

CAROLIN

This is

have
among the funds or invest¬
companies.

largest

seen

WEST VIRGINIA

Investment

Argus

information

Securities Company

cost.

dividends
ever ,1 i v ed.
paid it by its investments, < but;
(quoting the
grows through its equity in the
"Oil Daily" of
Lawrence F. Smart
earnings of these holdings! "From
Sept. 1, 1953).
dividends, Argus will receive ap¬
The alertness of the Hiawatha
proximately $1.40 per share this
management is shown by held in¬
year; and, on the basis of this, has
raised its 20-cent quarterly divi¬ terests in 849,289 non-producing
dend to 25 cents within the last acres in 12 States, a great part
in the
Rocky Mountain
quarter. To a "growth" investor, being
Utah,
Montana, Colorado
these figures are without signifi¬ area,
and Wyoming, which spread was
cance since equity in investment
holdings is the controlling factor. laboriously obtained by astute oil
I

Yamaichi

Glore, Forgan's

year.

is, obviously, far above that
figure. This holding is Canadian
dropped out, about a year ago, Equity & Development Company,
and down it went to a low of which,
in turn, owns the Don
with a Toronto Shopping
12 Vz from which price it has re¬ Mills
until

dead

offices

branch

$10

shortly after than

our

incidentals

Universe"—Boston,

Finally, Argus
owns
1,500,000 shares of Massey-.
Ferguson Limited, which is not
only the largest farm machinery
company in Canada but vies with
International Harvester for lead¬
Mass.—last

Since Argus holds 1,500,-

000

Mobile, Ala.

Direct wires

Securities Dealers
which will answer
the most searching inquiry. WieHiawatha Oil and Gas Company •
senberger; Capital Gain Research
Hiawatha Oil; and Gas Company
Bureau,
and Fortune Magazine ership in world markets.
Shares of the above are quoted of Pittsburgh is run by the Benehave also given recent notices to
dums of Plymouth Oil who earved
on
the Toronto or Montreal Ex¬
the stock. My selection is almost
out quite a reputation for themlike stealing another fellow's girl changes. Argus, also, holds a mi¬
1
selves- in the
—except for the fact that "I saw nority interest in a very promis¬
1
'
oil industry.
her first." A customer called my ing situation, which is not quoted
Mike
Beneattention to the stock four years on any exchange and which, con¬
dum, listed by;.
ago and
bought shares at 17%. sequently, is shown only at book
"Fortun e"
The stock rose into the low twen¬ of $1.8 million, although the real,

count of Argus,

went

estimated :1958; profit

million.

mitment, amounting to some 28
million Canadian dollars in mar¬

individual, Argus
have outstanding appeal.

Glore,

ties

SOUTH

loss

1957

NY 1-1557

HAnover 2-0700

New Orleans, La. - Birmingham, Ala

ahead.

sharply

turned

19 Rector St., New York 6, N. Y«

group,

GROWTH crop. The

or an

York, has written

TWX LY 77

WOfy

NORTH

latter

The

institution

LYNCHBURG, VA.

major
util¬

moved

Ferguson

Members New Y&rTc Stock Exchange~ '
Members American Stock Exchange v

BROADWAY, NEW YORK 6
TEL.

Cariadian stocks. They Argus holds 385,000 shares of this
the great growth to stock or 24% of the outstanding
the north.
Canada is the largest common: D. S. sales have risen
country in size excluding the "Iron from $34 milion in 1945 to $311
Curtain" and has the highest birth¬ million in 1957. Forestry, pulp
rate of any industrial country in and paper holdings include shares
the world. In Argus an investor in St. Lawrence Corp., widely held
can
not only "buy Canada" but also by Mutual Funds specializing
he can buy it through top man¬ in Canadian investment, and
talization
includes
$15 ^million,
agement and he can buy. at a 46% British Columbia Forest Products.
3M>% notes and a total of $15 mil¬
discount. In the deal he gets di¬ Further paper interest is also held
lion in two preferred issues* of
versification, a large measure of through ownership of stock in
which
half,, the " Series ;C,"A," * is,
inflation protection and he gets Dominion Tar & Chemical which
convertible into common.
There
one
of the lowest cost manage¬ not only is a major building ma¬
are 1,370,272 shares of the latter,
ment charges on the books. Argus terial company, chemical and de¬
which, on conversion, couid bump
is listed on the Toronto Stock Ex¬ tergent manufacturer but which
to 1,703,605 shares.-% The capitali¬
change and is also traded in the owns a majority interest in the
zation is not conservative; but, for
States, "over - the - counter." The large Howard Smith Paper Mills,
those who like the Argus manage¬
stock is suitable for any account Ltd. Canadian Breweries, the
ment, the discount—the stature of
capable of buying into .Canadian largest brewery concern in the
the holdings—and the future of
situations and able to operate in world is another interesting hold¬
moderately
limited
markets. ing with important U. S. subsidi¬ Canada, leverage is a free ride on
cloud nine to the Northern Lights.
Wherever growth is the invest¬ aries, one of which—Carting Ale
ment objective, whether for an —brought
its bottling to "The
want "in"

ftfcpONNEII&fb.
New

100

stocks, St. Lawrence
dropped off
temporary cyclical decline;

but Dominion Stores and Massey-

after good

Since 1917

120

are

reasons

and

SCRIP

H. Bradford

good ones. One of them is
Canada itself. For years America*?
investors
have been scrambling

Specialists in

gle, Argus "has got it up front."
Among the Argus holdings are
the
cream
of the Canadian

Argus for this

other

Steiner, Rouse & Co

The paper

of the Argus group

board

New Orleans,

Smart,

(Page 2) "

shares, the 90-cents per share
Through
the investment com¬ Massey profit spelt, a positive of
$1,350,000 for the investment com¬
pany has access to a flow of com¬
"kitty"
this year. The
prehensive information on invest¬ pany's
ment
opportunities
across
the Argus Report for the fiscal year
ended Nov. 30 will. be releasee
width and breadth of Canada. The
between the time of this writing
"Front Office" is all important in
and
publication.
It should be
an enterprise such as this; and, in
consulted for verification of the
the words of the commercial jin¬
this

mpany

column

the

Bought—Sold—Quoted

•

Law¬

—

and British Columbia,

ity or. industrial concerns.

that I selected

Cities

(Page 2)

Gas Co.

Canadian banking, insurance,

for that reason

CHICAGO

PHILADELPHIA

to Principal

least one man

located in To¬

Teletype NY 1 -40

in Canadian indus¬

names

try and finance. Their influence
is evidenced by the fact that at

ronto, Canada.
It is basically

•

Wires

known

estment

n v

BOSTON

Privute

said E.

Corpo¬
Ltd., an

ration

Stock Exchange

WOrth 4-2300

grow

Taylor,

Argus

Associate Member
American

President of

Corporation
Established

money

Edward)

(for
P.

New York Hanseatic

the

rence

La.

situations gald; and others on the Argus
have growth, Team, they are among the best

to it that the com¬

see

has

pany

Inc., Boston, Mass.
Hiawatha Oil &

into

believe

discussed.)

not be fa¬
miliar with such names as W. Eric
Phillips; E. P. Taylor; N, Wallace
McCutcheon; John Angus McDou-

—

only

buy

which

markets in over
available to you.

Primary

Just call

"We

V H. Bradford, Vice - PresidentResearch, F. W. Putnam & Co.,

American reader will

Boston, Mass.

of our

Louisiana Securities

Ltd.—Edward

Corporation

Argrus

Argus itself has four key officers
and
14 directors.
Although the

iF. W. Putnam & Co., Inc.,

and full facilities
to get prompt assistance and reli¬
able service on any OTC prob¬
issues

offer to sell the securities

BRADFORD

EDWARD H.

long experience

lem.

they to be regarded, as an

Alabama &

Participants and

Their Selections

intended to be, nor

(The articles contained in this forum are not
are

Our

400

each week, a different group

A continuous forum in which,

Problems?

help solve your problems
Take advantage today

This Week's

Forum

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

Year-End Tax-Switch

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I Like Best

The Security

only

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Quotation Sendees]
for 45 Years

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New Yert 4, N.Y.
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^Volume

188

Number 5806

The Commercial and Financial Chronicle

IN d E X
By C. RICHARD YOUNGDAHL*

Articles and News

Vice-President, Aubrey G. Lanston & Co., Inc., N...Y. City
'

Specialist in Federal securities analyzes present interest

American Economy

rate

—Sumner H. Slichter__

situation and its future outlook in his appraisal of
past, present
and future bond prices. In so doing, Mr.

Last

collapse of bond
prices and a * drastic realignment
-

summer

interest

students

tal

rates

the

caused

capi-

markets'*'■&

*to
had

—Sen. Harry F. Byrd__.

Split Personality of the Bull Market—Ira U.
Cobleigh

thrown ; "
k.; C

o o

er-

The Market Outlook—August Huber___

the old
norms,
or

accepted

Bituminous Coal in
1959—George A. Lamb__

the

-"•*

—Hon. Luis Munoz Marin____v_-—

Investing of Pension Funds in

\!—-Parul

L. Ho well

•_•_

' Our
Attitude Toward

capital

corporate

issues

over

in¬

Inflation—JBernard M. Baruch_______x— 15

badly

twisted, if not
C. Kicnard Youngdahl

altog ether

but

even

structure
to what
i

have worked

pattern
interest rate

today the
not

regard

the

would

are

developments?

hold;,;

not

Yet

more.

that

the

Federal

these

Upswing's Pace

found it

•

overextend

maturities

and

even

Teletype: JCY
Wanted: Good Businessman!

got where we are now, partly to
help us understand where we are

terest rates still lower and

and

...

Salt

Tapp, Warns

tools

help

for

Financing

• < .

■

• , Y

■

Regular Features
As We

;

Bank

de-y •'

See It

and

(Editorial)

Insurance

Cover

Stocks

judging

what

The

lies

stitute

ahead in credit markets.
!
f

the

•

Lender Attitudes Last Spring

Coming Events in the

and-:,-.

showed

Einzig:

oneA ye?r»

further
would

and
be

the

over

would

that

deteriorate
there

best

leveling-off

summer

and

investment

Z-

Field

i— 40
8

The

market

money
to

moves

had

the

Federal

Mutual

Our

™Specific^

May
:

Report

Now

;

and

You—By Wallace Streete___

Security I Like Best

The State of Trade and

ami

Industry

#ai>PP

4
40

^elo Jear

often asked rhe-

the

page

^Column not available

Washington and You_

Continued

Los

Cleveland

Offerings

time money in the intermediate,
was

Philadelphia

Corner

gector Qf th0 Governmerlt market, '

Last spring it

Dallas

Registration

Security

Teletype NY 1-1825 & 14844

Salesman's

The Market

inc.

40 Exchange Place, N. Y.

Direct Wires

Securities

Prospective
Securities

Mackie,

HA 2-9000

Securities

The

Bankers

Governments

vested what was admittedly "hot"

res^ereouirements

*An address by Mr.
Youngdahl before
Michigan Bankers Association Study
Conference, Ann Arbor, Mich.

Utility

Railroad

and

Wilfred

Reporter's

Public

Singer, Bean

San Francisco

Reporter

Our
/

secu'rities^Moreover^th^feverTta-

reouction in reserve
reductionin
requirements

Activity

°f which $3.5 billion

easing

S& ^oSet6^
mVth/tf

Funds

Observations—A.

fea,c£

been

Offing__

News About Banks

J f or cash o
g, leaving until
Reservi later the accumulation of an ade-

succession

the

wide¬

that peak of loan demand. Yet in.
the first half of 1958,' they went

•

this

Indications of Current Business

vowed never again to be
caught in the illiquid position inwhich they found themselves at

average economic savant put any
upturn a convenient six months
Or so in the future

treated

with

of.

J^etu ^ear

"Changes in Dollar-Sterling-Franc

From Washington Ahead of the News—Carlisle
Bargeron____, 16

hac*

period

fall.

structure

in over 16 years.
Commercial
banks lengthened
drastically the maturity of their
government portfolios during this
period. In 1957, bank after bank

declining level of economic ac¬
tivity.
It was widely predicted
that .business

debt meshed

less

recon¬

matured

rapily

maturity

point-of-view. From No¬
vember, 1957, through June, 1958,
the Treasury issued over $26 bil¬
lion of securities
maturing in over

that time the latest available busi-

indicators

the

need

ima.

Dealer-Broker Investment Recommendations

Ratios

spread

Let us begin with the situation
in the money and capital markets
as it was last
April and May. At
ness

Treasury's

Cfjrtsitma*

Business Man's Bookshelf.

intermediate and longer-term -in-

refurbish

Lake City

Deficit

attractive.

partly

the

1160

Direct wires to Denver

rebuild-',

plentiful

!___

(Bbxed)

ABA Group, Headed by Jesse W.

ing their liquidity positions untiR
later, when money was expected.-

DIgby 4-4970

___!!!_

there

investment

defer

Exchange PI., Jersey City

Aid to Anti-Inflation PoIicy__

Members Salt Lake City Stock Exch.

Marcus Naclier Views Decline in
Government Bonds

Reserve

easy

_____

circumstances, lenders

group

J.F.Reil)y&Co.,Inc.

•Federal Reserve Bank of New York Measures
Economic

cide

that,

We need to consider first how

new!,

pace

ease.

some
guideposts for
appraising
the
future
of
bond
prices, or at least as to how they
might move under
certain
as¬
sumptions
about
business
and

credit

issues

as new

and the aggressive policy of credit

policy.

What

___

would supply commercial banks
with the reserves to take care of
the Treasury's needs, in view of
the serious decline in business

normal, considering the prevailing
level of economic activity and the
current posture
of Federal Reserve

_______ ______

Students—Roger W. Babson

summer.

billion

sumed

fully conform

used

Story.™

seemed ,to be little concern about
its impact on the money and
capi¬
tal markets.
It was generally as-

usual

does

back

the

ami

Steel Production Outlook—William S.

Everybodyknew there would be a
big Fed-'
eral deficit to
finance, although;
few expected it would be as
big,

rates

bit toward

;

level

policy and the

broken.

market

that

recently

_r_

Investors

seemed

Inflationary Lcortomy

continued..,
remarkably high level. But!-' Economists Participating in Conference Board Forum Agree
'there
also- was
concern
on Long Run But Not Short
Ruii Pro9j*ects for Inflatiom___ 12
eamongy
at

;

relationships,^*

terest

What Puerto Rico Is Doing to Improve Industrial
Climate

about further declines.; To:
this reflected some find¬

ing of business loans

- ;

between credit
of

_____L - 6

be sure,

tainly most of '

____

Stock Market in the Coming Yea*—Walter
Maynard

happily anticipated, perhaps":

worry

CHRISTMAS

away the rule "

Cover

Outlook for the Bond Market—C. Richard
Youngdahl

Treasury financing needs of early ! ■
Brightenihg the Automobile'Outlook
July. Loan demand was weak at< \ »•—-Harry A. Williams
y commercial banks, particularly in ,!■ >
The Case'AgaihSt Federal Loans to
the moneys centers, and there was!:

MERRY

___Cover

Factors

wonder

Whether

■.

over the Memorial
Day holiday
and if not at that time, then' tomeet
the
currency
drain
and

many

and

money

was

National Interest Must Precede Private Gain

Youngdahl disagrees
that the Fed should support and switch to
long-terms, termed
"flexible guidance" by its advocates, when prices
fall, and
points out that such "flexible pegging" could have undone
maturity—lengthening achieved in first half of 1958 and have
countered Fed's anti-inflationary efforts. In the absence of
easier money and a business
decline, the Banker predicts:(1) continuing money market pressure due to the unsatisfac¬
tory budget situation; (2) no significant long-term interest
rate decline due to
Treasury's financing needs; and (3) pro¬
tection against long-run
depreciation of the dollar and bondprice fluctuation may cause Treasury to raise longer term rates
^higher than a casual view might suggest.

Page

the Threshold of 1959

this week.

to au
Published

For many years we

have specialized in

PREFERRED STOCKS

Spencer Trask &. Co.
New

York

Stock

r
0

Nashville

Exchange

Boston

TELETYPE NY 1-5
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Schenectady

Glens Falls
Worcester

Park

DANA

Reentered

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President

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Thursday, December 25,

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Offices:

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1958

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Every Thursday "(general news and ad¬
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plete statistical issue — market quotation

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matter Febru¬

v.u«s

25, 1942, at the post olnce at New
York, H. Y., under the Act of March 8,1879.

COMPANY, Publishers

Place, New York 7,

DANA

B. Dana

ary

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WILLIAM

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Company

CHRONICLE

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Members

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York funds.

Direct

PHILADELPHIA

The Commercial and Financial Chronicle
4

Thursday, December 25, 1958

(2700)
Telephone

Why

Split
Of the Bull
By DR. IRA

Market

has, in-

1958 stock market

The

been a remarkable pheWhile, at the start oi

deed,

nomenon.

the year, many

statistical savants
saw

but

little

corporate

plodding

the offing, the

result

actual
was

rcsur-

the New York Stock Exchange,

splitting their stocks 2-for-l,
moie so.

vast reservoir

1959.

Certain features of stock- extras

total

end of

by the

topical observations on recent stock splits;
list of possible candidates for similar financial
fission in

attractive

stockholder

Containing some
a

...

past

accompanied by a reduction in par
v

Auto Production

and

1960, and provide
of capital for the

security offerings.

Commodity Price Index
Food Price Index

Industry

Business Failures

huge financing program of this,
you'll pardon the expression, "bell¬
wether" utility. Since the end of
World War II, A. T. & T. has raised
over $12.5 billion in new capital for
plant expansion; and it will surely
need that much again in the next
decade. The recent action of the

to future

Retail Trade

State of Trade

million

Electric Output

*/'; Carloadinxs

inves¬

Steel Production

The

J
With

the

volume

peak period of Christmas shopping at hand, sales
week for the most part displayed noticeable

past

improvement over the week before and slightly exceeded last
year's level, notwithstanding inclement weather in many parts
of the country and the newspaper strike in New York City.
On the industrial front last week automotive production was

should be made clear,
(l) In true stock dividends, a directors (and the stock) and the
slice of surplus is transferred to 10% rise in dividend, is calculated
to make old and new shareholders
capital stock account.
(2) Split-ups. were
originally, very happy; and eager subscribers

from value.

frrr-

tors, thus broadening the market
for its stock. It should boost the

U. COBLEIGH

Enterprise Economist

together with

Split

logic prevailed,
however, and the A. T. & T. direc ¬
tors decided to split the stock for
the standard reasons—to make its

-'/Fashion.-^and

by strikes and labor problems which affected assemblies

retarded

truck

output at Ford and International Harvester plants.
The result was a decline of 5% in output for the week.

Elec¬

Chrysler

American Motors Corp.,

Corp. and

well

tric

output, however, in the. latest week set a new allhigh record for the industry at 13,534,000,000 kwh. Lumber

energy

time

;

production was up by 4.4% but car loadings eased by 0.9% below
the preceding week.,. Scheduled steel output for the week begin¬
ning Dec. 22, which includes Christmas Day is set at 68.2% of
no technical difference between a
ingot capacity compared with actual production of 74.5% a week
shareholders will get the idea that/
the Dow-Jones stock dividend and a split-up.
ago.v
/
-* '
// /
their dividends, as '-w&tl as their,
Industrial
/
Layoffs in the construction industry and other outdoor activ¬
certificates, are to be trebled; and
Averages to
A Bullish Phenomenon.
^ v
ities caused by the onset of cold weather have been substantially
some will be a little baffled when
new
highs,
v In any event stock extras are a
less this month than a year ago, the United States Department of
they see their stock grading at 75
and attracting bullish phenomenon. They flourLabor reported.
;
* "
: V
'''*
instead of 225. And think what a
to the equity jsh
"/
The number of workers drawing unemployment insurance in
only-, in rising markets, and mountain of
paper Work is in¬
Ira U. Cobleigh
market tens of usually occur in highly prosperous
the week ending Dee. 6, hit 1,944,100, an increase of 70,300, com-:
volved in printing, registering and
thousands of companies. While actually a stock
pared with a rise of 154,900 to a level of 1,876,900 during the
mailing out two additional shares
new
corresponding week in 1957.
participants. Not only has split-up
gives the stockholder for each share now owned. After
The
the market kept itself busy set- nothing he does not already pos¬
department noted that initial claims, reflecting new
it's all over, A. T. & T. will rank
layoffs, increased by 6,200 during the week ended Dec. 13 to
ting new altitude records, but it sess (except a larger number of third in respect to shares out¬
has been
reach 397,100. New claims a year ago increased by 17,000 to reach
equally diligent in try- shares), ft does convey to him:
standing with 211,000,000. (First
ing to disprove a time honored
413,000, indicating the early effects of the economic recession.
■
(A\ Evidence of corporate pros- in General Motors with 282,000,000
Insured unemployment in the week ending Dec. 6 was 4.7%
axiom, namely, that the whole is pCrity.
and second Standard of New Jer¬
of the labor force compared with a rate of 4.5% during both the
equal to the sum of its parts. For,
gajance sheet recognition sey with 214,300,000.) And, finally,
in truth, when a number of comprevious week and the corresponding week a year • ago. this
f
increase in corporate earn- there is a considerable feeling that
agency concluded.
•
v*
x.
panies
decided to divide their
"
.
.
S3.30 a share is not the sort of
shares 2 lor 1, 3 for 1, or even 10
net
dividend rate to string along with
for 1, tlie market proceeded forth:In the "steel industry American steel/mills are up against
(C) Usually a considei«ble le- for the next 36 years. $3.50 would
with to scrap the axiom, and to tention of net earnings and rein"
stiffer competition in the world market. They are not even safe-•
look better, and bring the stock
in their own backyard, "The Iron Age," national metalworking^
prove, rhbrketwise, that the whole vestment of same in the company,
nearer to a 5% yield.
is less than the sum of its parts;
(D) Managerial optimism that
weekly reports.
Two new shares miraculously be- dividends can be sustained on a
It is not only Russia that has United States mills worried. The
1959 Split Candidates
came
worth more than one old larger number of shares,
Reds have not given them much competition as yet, but Europe
With all this topical discussion
and Japan are the more aggressive arid the more immediate
one; and investors began to con(E) The announcement or im- on the subject of splits, it would
threat.
The metalworking magazine noted that more steel men
clude, almost automatically, that plication of a forthcoming increase seem
incomplete if we didn't say
a stock about to split was a stock
are
jn total amount of cash dividends,
being forced to think in terms of a global market.
something about stocks likely to
about to rise.
\
They see their domestic wire market undermined by Euro¬
Thus it is that we find stock
split in 1959. /If the prospects of
pean mills which easily undersell them here at home and watch
dividends and splits being molted a
split can so pleasingly activate
How It All started
uneasily as Japan underbids them on a plate order from the
hy quit^ profitable and growing and animate share prices, what
gence

recession

epic proportions, carrying

(3). Nowadays,.

value

7 "

with

par

virtually

there's

common,

A split of such magnitude does
present some practical problems.
Thousands of less knowledgeable

Well, how did we ever arrive
a cockeyed mathematical
concept? Who decided that stock
splits were a good thing in the
first place?
To answer that you
have to back track in history 276
years. In 1682 in Merrie England,
the East India Company had had
a
prosperous year, and the management decided
to declare
a
109% stock dividend, undoubtedly
the first on record!
A couple of
centuries
went
by before stock
dividends or splits became fashionable, however; and a milestone
at such

in the life
was

companies in the up-phases of
business cycles; and we usually
observe strong market action in
company shares both before and
after a split. This is due in part
to the generally bullish market
climate—the old stock might have

of this financial mink

Supreme Court decision in

This year

will

down in his-

1922

tory as a famous one for financial
fission.
Food
Machinery
and

non-taxable.

chemical

declaring
stock
dividends
Following that,stock
dividends
became
important in
financial policies of many corpo- ^
rations. From 1923 to 1933, North
American
Company paid 21/2%
quarterly in stock; Cities Service
Co. paid 6
cash from

stock and 6% in

/j- in
1925

Here's:

today's market?

Busi¬
and

Rohm

and

Machines

ness

Then, in alphabetical order,

Ilass.

Lead;

National

Mining;

1926

Texas

"The

twice

issues

selling at fairly high prices

(mostly *100

STATE AND MUNICIPAL BONDS

wider

LOCAL STOCKS

Robinson-Humphrey Company,Inc.

would

usefiil

The

guess

seem

and

prestige.

corporate

WALNUT 0316

ATLANTA

1, GEORGIA

LONG DISTANCE 421

but

which

leave

serve

redound
My

to.

random

would be that certainly ten

of the above will

RHODES-HAVERTY BLDG.

where

and

outstanding

purpose

;

tend to become

thinner,

and

multiplication

where

better)

markets

trading

CORPORATE BONDS

those

ones

your

split next year,
they

will

conjecture and to

the dicisions of the

various board*:

That

'
~
.».»
Z
i - ".V/ / Z
Meanwhile,' the American steel market is winding up the year,
note of strength. There are signs that a big stretch-out in
order bookings will hit after the turn of the year.
/. ; .
,
/
" This trade
weekly declared that more steel users are.making
estimates now of their steel needs over the next nine months.,
The reason for this is the uncertainty over the outcome of, negotia¬
tions for a new steel labor contract. The current three^year con¬
tract is scheduled to expire on July 1.
" •
I ' "*. 2 .*
One steel executive is predicting that steel operations will

workers.

average

merely culled from

Age"

China.

produced in 1957.
Much of this was achieved in "backyard"
pygmy-size furnaces involving the labors of millions of Chinese

list as

stated, was the operations bootstraps of Com¬
country, it is reported, hoped to turn out
much steel this year as the approximate 5,000,000 tons

Iron

munist

Corp.,

Tfggfc

stated.

over

80% of capacity in the first

He feels also that at some time

during the second quarter, the
steel they can

make.

;

directors.

half, "The Iron Age"

during the year, probably

mills will be turning out all the.
- -"'.■/
•
"

Department of Commerce figures
National Product in the current
quarter hit a record of about $453,000,000,000, a gain of some $14.000,000,000 over the rate for the third quarter.
ip;
r
?
This annual rate of national product—the value of all goods
and services—tops the pre-recession high of nearly $446,000,000,000.
Preliminary United States

indicate the annual rate of Gross

in the third quarter

of 1957.

However, the department for the first time presented an addi¬
tional measure of national product which cuts the current period's

substantially below the $453,000,000,000 figure. This method;
as a major new economic indicator by the agency, adjusts
the rate of national product to take out the effect of price increases,

rate

hailed

quarterly rates both in 1957 and 1958. It expresses the rate in
Department calls "real" terms, that is, adjust¬

what the Commerce
ed for

price change/with 1957 as the base year.

Despite the indicated fourth quarter
$453,000,000,000,

however,

"current dollar" rate of

the: estimated total national product;
z
Continued on vaoe 28
.

„

production compared to 50% in 1957 and about 43% in 1955.
One of the most interesting developments during the year,

Owens-

American

ESTABLISHED

297,000,000

Land

June

compared with 35% last year and nearly 40% during the record
year of 1955.
"
* Z
Russian output this year represented 70% of United States

Telephone and Tele- Zenith Radio.
Omitted was the
j-raph. /'They said it couldn't be
highest priced listed stock, Su¬
Trust shares were split 100 for 1.
rione!" For 37 years that $9 diviperior Oil of California, which
The next volume period of stock dend had been a fixture.
Even
dividends or split-ups was in the though "T" had been a high priced some day will be, no doubt, split
1936-38 era when the practice at- stock, it seemed to belie the ara la Upjohn, but probably not in
tained vogue as a means of avoid- gument that shares should sell in
1959'
"•
* :>
ing the bite of the undistributed a lower trading range to attract
Now, no prophecy, warranty or
profits tax. And in the mid-fifties, stockholders since, at 200, "T"
1956 tp be specific, the prolifera- had more stockholders (1,626.000 assurance whatever is here of¬
tion of. shares became high, finan- total) than any other corporation fered that any of the above stockscial fashion, with 56 issues, listed in the world.
will actually split in 1959.
The
and

Russia to become more com-

tons, compared with 321,000,000 tons last year.:
United States production this year was less than 30% of the total
at

Minnesota

Honeywell;

neapolis

home expect

petitive in the world steel market.
At the outset, this competi-:
tion will be largely in the heavier steel products, such as plate
and structural, but not in sheet and strip products.
v
>
Despite the recession, United States mills again produced'
more steel than any other country this year.
Estimated output of
domestic mills at 85,000,000 ingot tons was 15,000,000 tons greater
than Russia's production.
,;
yr* * .
■
•«
;! / /
Estimated world steel output by "The Iron Age" during 1958

partial shopping list: First the

$500 beauties, International

Navy.

Steel mills here at

Illinois Glass; Pacific Tel. & Tel.;
split
2-for-l;
Parke-Davis, Kroger Co. and Ad-- Pittsburgh Plate Glass; Polaroid;
dressograph-Multigraph 1 all* split Richfield Oil; Smith, Kline and
M-for-1; Atlantic and Pacific, 10French; Thiokol; Union Carbide;
for-1; and Upjohn, 25-for-l. And,
U.
S.;Gypsum; Vick Chemical;
Gf course, the daddy of them all
Youngstown;
and
was the gigantic 3-for-l split in Worthington;

1932;

Pacific

from
a

candidates to choose

the likely

anyway—and partly because the new shares wind up in American Home Products; Ameri¬
a lower and more popular price
can
Tobacco;
Colgate-Palmolive
range attracting thousands of new
Peel;
Corning
Glass;
duPont;
investors whose buying propels
Eastman Kodak;Freeport Sulphur;
the shares further upward,
Gulf Oil; Hercules Powder; In¬
V ;
Year of Financial Fission
land Steel; Lily Tulip Cup; Min¬

gone up

States

United
are

(vi'

Volume

188

Number 5806

The Commercial and Financial
Chronicle

■f 7

(2701) ; 5
t

;/ \:?The: Higher/
J

/Abovetu. ate

Cheaper" // /

ally j^rhaps, in" unfor-/

results

excess

the

if^^sp^ulative:;

imparted to the stbek

mar-

....

split-propelled

By A. WILFRED MAY

results.

generous

SPLITOMANIA REKINDLED
Counteracting

structive

Telephone's
Street's

this

over

Along
his

the

••

with

chronic

re-slicing

the

- -

share-

prompting

Wilfred

May

leading

management's apparent following
- -

•

Electric

shareholder

family.

President Kappel,
in his ' re¬
marks from the floor of the meet¬

'■* ing in
denying the stimulus to:
the investment- ownership
from] splitting
("the

Characteristic of

have the* other most widely owned

splitting operation.

corporations.

effect

the

stock's

its

the

split

market

including V

this writer (in

Studies of the

fallowing

trend

count

stock,

taking

into

series of articles

while

ac-*

analysis

dollars

price

the

Thus/

the

million

per

market' value

have 138, share owners,
average
for the five

most

widely owned

nies is 54 share

published in the "Chronicle" Jan.
17 to Feb. 7, 1957), reveal that in
the absence of

owners

compa¬

per

substantial divi-r

issue's "fading" down to or below
its relative pre-split market
posi¬
Such

fading,

results

has

with

uncom--

been

also

the

investor/

occurring recently
un-split former
"split candidates" where the earn¬
ings have been sticky; such as

in the

case

of still

Amerada 147 high in 1957, now 98
(in the face of the general mar¬
ket's

big rise); Kennecott 147 in
1956, now 96; diiPont 249 in 1955,
how' 201;
Chrysler 101 in 1955,
how 50; Allied Chemical
129" :irf
1956, now 92..
V
i

* *

■

Justifying the favorable market
performance

market

since

earnings.
1955

has

attained

$13.53.

Net

season¬

solidified

12-

31,

high of
constructively

new

the/dividend rise

favorable market response is
increase in the surplus per
share from $19.99 in 1955

common

approximately $27

now.

//■

Ownership Broadening
Not Controlling

The crucial benefit to the stock¬
from financial factors as

holders

earnings-and-dividends
from

price-earnings

the

IBM's

Mining's

may

ratios

and:

rise.

mere

this

Stock

make

creases

Exchange,

rather

split,

rate and

penter,

Jiy. to

partnership.

the

firm's

various

main

attribute, has
skeptically by this

the

Notice

An¬

nual

Meeting of Stockholders in

1957

posal

stockholder's

ground

split

that

the

formal

stock

would

pro¬

"result

C., Lenz,

Charles

My on Dec. 23 an rssw rf 154,flOO
shares of 25 c^its far value comInc" at 3
$4.75* pci share.

Franpis-'

Rdward
K. V

Marsi'Q^^;^f^,a^
*%]/ contracts with adverHsm^.;

(member of the New York Stock

Exchange),: Gillette : K., Martin; ;a|gencies; industrial and^d^ument^
John H. Miller, Robert
O'Connell/
Joseph C. Quinn, Bernard B. Ramshares being offered,
" Donald ; T. Regan,
Dwight 000 represent new
Robinson, Milija Rubezanin^. Nor-shares
man ;P.
Smith, Wilbur Fv Smith

fiMneing.^e^
arejfitog

(member of the New York Stock

Exchange),
John
F.
Sullivan,
Robert N. Suydam, Byron G. Web-

•

29% of

common

stock

Lowell

Sether with $250,000 recently bor-

Fihdlay,

rett,"Samuel I. Grodin,

(^::Used for.; additional.stddio
fa^s' yjdeo. tape/eq^pment

John X

Chval

Russell

Clark

Mr.
E.

Fenner,
Samuet'L.

Douglas

Fullei? George

A,Gar-

office, 39 South La Salle Street.

EdMrn,w5Tann

the

New

1526

office,-

phestnut. Street,4/ * /

Now With

•.

Berwyn Moore-

become

Marion E. Taylor

Exchange), Ar-

Ledbetter, Edmund C. Lynch,
Lyman R. McFie, Milbank
McFie, Herbert H. Melcher, James
Jr.,

F
E. r Merrill
Merrill

associated

with Berwyn T. Moore &

toe

Stock

thur S. Laundon (member of the
New York Stock Exchange), Gus

LOUISVILLE, Ky. —Marvin H.
has

York

Co., Inc.,

Building.

Stock

fmember
(member

of
oi

the
the

New
New

f"?
mu

™

1954

flscaf^f Kifmwiys
ended Aue 3f l950

fril5?

^ fi^al
rn these

year

neriods

^me

Lc* f®

net income

t!!

FS&jf1V^^ 7
figure IS- equal to 50 cents
ghare

fering.

THE 1959

ANNUAL REVIEW & OUTLOOK
ISSUE

dividend

in¬

OF/VVVP'. ^

THE; CHRONICLE

its

Will be Published

corporate

for

managements,

★ The 1959 issue of our: ANNUAL REVIEW & OUTLOOK ISSUE:

with

investing community . for its
misunderstanding and speculative
ings,

Such

ranging

the'implied

basic mathematical myth

market

scarcity

thinness,

currently

are

fields.

stock

★ Get your

and

revealed

published -commentary

Telephone, split.The
record for the past two
years
shows that Telephone in
1956 ranged between a low of 165
and a high of 187 on a volume of
3,371,000 shares, and in 1957 be¬

perspective

leaders' who manage
★ Do not miss the
Bank in

this

the

low'of 160 and

lows

of but

12%%

the
in

Actually,1

last

dividend

action

market

for

Week's
first

this stock

and volatile."

America's most

-•

the

•'
.

•

•/r

,■

your

for space

cross

section ypC
^^

t -.-r

•. ■

will-prevail^^'i^f^i-^\£

*4%

•

THE COMMERCIAL & FINANCIAL CHRONICLE
'

in it his important issue.
»jr

25 BARK PLACE, NEW YORK 7, N. Y.....
RECTOR

2-9570

•

Firm, Corporation or14

Regular advertising rates

really thin

Actually
splitting
costs
the
holder
something in raising his equivalent bro¬
kerage commission expenses.

opportunity to advertise

' ■?

closing date of January 10th
■

against a

made

next year's business possibilities from the.

competent u"-"'——1

split-and-

the country's industries,-

outlook for the year ahead

.
v

important issue constituting.composite

high of
trading of 1,938,000 shares,
two-year average range above

the

/v-

*v?

that in¬

creasing the number of its slices
raises the size of the pie* to con¬
clusions that a split overcomes a
supposed

will/:.

present the official opinions and forecasts of the nation's banking, indus^
trial and financial leaders on the outlook for business in their
respective

misunderstand¬

from

the

reactions.

January 15, 1959

stock-split

much with

m 447,986 shares which
outstanding after this of-

Exchange), Allen A.

Pierce (member of the New York

fiellpf

^ invested iathe

thur L. Kerrigan (member of tho
New York Stock Exchange), Ar/

.(Special to The Financial Chronicle)

Carlisle

outstanding

Chicago

Philadelphia

^ ^

company s founders, who will conj"0 own
?' i
5
after completion of the offering. ;
Proceeds to the company, ; to-

Mr. Fahrig is General Manager of

firm's

(

'.Iseman^^^ ^

McMillan,

course,

over,
a
permanent
increase
in
range of 18%% concurrently reg¬
shareowners from splitting, rep re- • istered
by the Dow-Jones Average.

company.

•

abuses lies not

its

Har&ravp

Hunter/ Finle

Winthrop

Cunningham will make his head¬
quarters

bodies, it

palatable

Responsibility

phone's

current and past statements. More¬

Fahrig,"Jr., James W.

179 in

been regarded

Darwin

{Wester, Ji>
Fowler, Austin A. Gra-.

ham -Horner P

Investment Community

share-splitting,
in

'Engel, Jr.,

Fenner, William A;

Cunningham, and Ralph E. Car¬

Unsound Reactions of the

has been fully endirsed by Tele¬

management,

Jan. 8 will admit John H.
Kirvin,

Henry

Treasurer* '

Slock Offered

Tifus W.

City, members of the

York

/corporation

English will be Viceand
Secretary; James.
e. Thomson, Vice-President and
Treasurer; and Kenneth W. Martin, Vice-President and Assistant

sey,

Reynolds & Co., 120 Broadway,
New

new

While

tween

sented

the.

possibly

Reynolds & Co. To

New York

City.

maintained through-

Earle

President

Filmways Common

Louis

Admit New Partners

market

Aim

than

40-1

split-supporting factor
Telephone might be
the "public relations" problem in¬
volved in a utility whose stock
sells in the $200-range, particu¬
larly in the context of a dividend

The

Winthrop H. Smith, Chair¬
man
of the Board; Michael W.
McCarthy/ President;' George "J.
Leness, Chairman of the Executive •
Committee;. Harry B. Anderson,
La Rue F. Applegate, Ned B. Ball,
Ode
V.
Cecil, Vicior B... Cook,
James
D.
Corbett,
WilliamH;^ Tv^Wii'
Culbertson, William H. Dunkak/ lf
JP*

Another

per

become

Likewise

substantiating

;

York

constant

peculiar

of its higher

in the $13 range, and for the
month
period ending Aug.

1958,

higher they sell,
attractive they look—an
investment absurdity! V
f ; '/
more

attached

New

Weisbuch,

Manuel

D. Willis and Richard A.

stock

ing of its comparatively recently
raised

company's
quite
expansion with
enormous capital needs, whose fi¬
nancing through existing share¬
holders
via.1 rights
offerings is
thought to be stimulated by a
split.
•

level, is the 10% dividend

rise in the context of the

the

cision

unique

at split-time and also possible

now

specific factor in support of

consumers.

Telephone

permanent retention

and

Telephone management's split de¬

may

Eliminated

•

does not fool regulatory

ATTs Favorable Value

recur-

Thus, it is evident that broad¬

ening the stock-ownership -base
increase, a split, either ac¬ cannot be deemed the
controlling
tual or only
rumored, causes a motivation for the split.
speculative flurry followed by the

tion.

the advisers'

are

Weiden,

Woods (member of the New York
stock Exchange), Vice-Presidents.

will be

supposedly, the

the

million

dollars of market value." /

dend

fortable

the

i ;

parative weight in evaluating the

course

all

community's proclivity to over¬ experience of other companies in-'
look the truly crucial nature of aicates a
split might cause a tem¬
earnings and dividends during pe¬ porary increase/ but
that - this
riods of split
would
soon
mania, Telephone's
drop off")/ further;
indicated increase in the dividend points out
that, despite the com¬
rate and its support
by a raised pany's high price dollar-wise, "we
plateau of earnings-per-share are also have many more share own¬
not being given sufficient corm- ers in
proportion to our size than

actual

per

now

Street,

Officers of the

concept

ring rash of "split-candidate" lists.;
The higher they
sell, the more
split-able they become. That is,

Minnesota

eral

Value Factors Beclouded

are

the

1,620,-- tificate multiplication via prosti-"
OpO holders—two and one-third tution of the multiplication table.;
times that of split General
Motors,
well over triple Standard Oil of
New Jersey, and quadruple Gen¬

circumstances

;

they

additional

through

main: office

out the United States.

further broadened to about

Standing the

of the crowd.

that

boost

very

There¬

justified; but if so, on a basis of
ownership base has since, in the value elements/ real or
imagined,,
intervening year-and-a-half, been which cannot include share
.cer¬

holder^ pie,
the investor is" '
iti is u nder-1

this

they get

price

rations combined. The stockholder

nificance of
of

"strong and consistent

after

that, stemming from sound finan¬
cial policies, their
company,; al¬
though still "un-split," had 1,500,000
stockholders, or about 100,000
more than
any other three corpo¬

misinterpreta-/

such

split-able,

that

lower

"hriah

Lynch/Franciss

Exchange, will be formed.

firm's

Branches

growth in the number of stock¬
holders does not depend on stocksplits." They went on to observe

sig-

The

high price-earnings ratios.

reason

o n.

tion of the

Stock

Pine

broadening the base

phen

■,

Blue Chips have in
many instances
boosted to prices

because

bull >

market
n o

split
given

fillip
.

pyramiding
toward
of growth,

tendency

ownership
price
levels,
which is desirable," was
vigor¬
ously opposed by the directors

con¬

American

Pierce, Fenner & Smith, Incorporated, members of the New York

with inclusion of their first-stated

stock

craze

the

discounting

reflecting

possibly

any

features -of

dramatic

price

Effective Jan. 12 Merrill

ket by split excitement. A kind of

hang e), Edward A.
Pierce, E. Howard H. Roth, Caryl
IL; Sayre, Russell T. Stern, Nor-/
x c

T-'V *

;

j; /

The Commercial and Financial Chronicle

1958

Thursday, December 25,

(2702)
"

At the high

prices on the aver¬
age for the five years—1953-57,
the figure was 13.7 times. For the
ten
years,
1948-1957, the figure

The Market Outlook
AUGUST HUBER

Members

Partner

mitments at

ages"

Mr. Huber comments on such things
level and enthusiasm which may have

the market's high

temporarily over-discounted the near future
such factors as (1) price inflation's extent;

thus creating an interim
vulnerability to a sizable market

vance,

our

plant capacity is
It is difficult to
attain full-blown prosperity without a strong capital goods boom.
*
(5) Total construction—government forecasts of $52 billion for

Dow

A1-'

"-1-1

■"

—

e/>/

wind removed from

the sails.

the

eventuality,

cn) TL

will bave

present

cate caution

approach

and

new

I fcontinue

look

for

find:

porate

eral Reserve Board Index

100)

declined

from

1947-49

from

a
peak of
April.
Production has recovered steadily to

145

126 in

141

rent
an

1957

debt

net
the

and

most

for 1958, equal to the $21.8 billion
of 1957, and under the $23.1 bil-

clined

from

i-'ii*

i>AAn

$440

billion

Product

ail-time
•

inrn

It is not

be-'

1
be*0*

mated

muph

oDtimishc
optimistic

esti-

their

$436

dividends

1958, and for the final

quarter of this

year

nnP<.tinn

or
or

even

•

♦

World

chrmiH

•

Trade

important aspect
is

trade

world

that

expanding

rapidly, that the standard of living r
of
underdeveloped areas of ther
world is rising, and the needs oft
these
underdeveloped
areas
in:'
terms

the

ties
areas

This

productive capabili-i*
developed

are, 7
means

effect,

industrial-

insatiable.r

that companies

whicty.

operate effectively in;
world markets probably enjoy, a;\
distinct long-run advantage over;
able to

are

those that are confined to the,
domestic market. The ,; growing;
importance of world trade must
be rated, for the purposes of our
. analysis today, , as carrying substantially greater weight than the unfavorable aspects of our international position.
Pr„hlpme

Fatare Comi^rtive Problems

.
We . probably shouldn t discuss .
the matter of the international po- .
-sition of the dollar on a note of
must accept the
fact that in the matter of our
future ability to compete m world
•

we. are

faced with grav^

^odd Pobut-S- wilii we have ^ace Problems: rising — if the recent.
Dolihcs- wfll'weTave'neac-e j . h and Our labor costs are
w0lld
3^.^^
elation means^nything it is thai^
^ 11.; !«n tL labor leadership will exploit its,
earnings ratios. A year_ ago>Ohe apparent\. increase in political.
Russians had lust launched th^ur ftrength to seek to accelerate the'.
.

i0okine

over

recent

the

vears

"inflation"

find that

relation

It should not be
forgotten> however, that our abil*

uuu

come necessary.

earning

rvi!]g, any

International Position of the

of capital and technological know*
how, and the provision of banking
10 million automobiles instead of
The
that we facilitieS) can be greatly increased,
5 miIRpn or so now being pio-, should ask ourselves concerns the and recent Congressional hearings;
.

Dollar
next question

auiomopne lnausiiy can piuuucu
—

anri

valuable services

such as the export

ity

a! -v

perform

in world trade,

can

;

?i? T?0P1"10n

2* P^duce considerably more than time be the world s trouble spots
in successfully? localized.
pessimistic
be consumed, inflation as such will

should be at

The steei mdustry can fundamental integrity of the dol-

duc?d-

tax

concessions

for American

required for sustenance excess capacity in aluminum. Sur- nificance of the rather substantial ing our position in world trade.
gr°ws taller, larger, or plus farm products which repre- gold loss which we have suffered. .
Domestic Political Risks
broader If adequate nourishment sent an annual problem of dis- A SOUnd dollar vis-a-vis gold in

J11C,1L ^

>iigh.
CD

Increased

cnendine

mental
trend

Outlook for Continued Peace

adjusted

seasonally

billion

, v

Qf these factors

To begin with we should ask

f outlook for business for will not be effective by itself in
oi
raising prices. For example, the
^ icfllistlc about stock prices and aiifniTiohilc industrv can nroduce

high

1957

was

lion registered in 1956

cur-

projections for 1959 look for
of about 144.
Gross National

Yet deficit

rose

T-n

November

+V,^nwhii^ obliged to reach abroad for part]
of our requirements for such com-,
avera 1
co5porate ^^its 4o^
modities as iron ore, copper and,
hlflaLed
difficulties wherever they can to some extent, oil. It would seem
f
they will not piovoke us to the ^at major efforts to improve our.,
First there is the excess plant point of war, and that the dis- reja^ve position may in time be-,
It should not be
capacity. So long as industry can orders that break out from time to

earnings around $21This would be up
$17.5 billion estimated

average

(2)

spending

some

l°°?,at some °' mesC

d
f ig
deficit
large. The PUbUc
$20 billion in that period>
During that time the cost
of iiving <113.5 to 114.7) and the

efhc,ency

billion.

$22

(1) Industrial production (Fed—

be a better business year than wholesale price index (111.2'"'to
economip gains oi organized labors
1958 but is likely to fall short of 11L3) showed small changes. Cor- war.v Today it appeals that the at;lhe expense of 7the rest .of-, the /
so-called boom" proportions.
' porate profits before taxes were"a^nrance"' population.* Moreover our raw'
(9) From present indications we $41.2 billion in
1951 and $42.5 w-orld' whlc^h 1S ^
material resources are visiblywould
estimate
total
1959
corbillion in 1955.
°1+ Pe£*cf'
not bfen
dwindling, and already we are

In attempting to reconcile the present
all-time high level of stock prices
with economic factors currently
prevailing or anticipated for next
we

.iook at

For example, from the middle

(8) In general, the evidence
supports the view that 1959 should

further

d e f i c i t ; probably
inflation foafstniore

spending in itself does not automean inflati0n.
*-

to absorb costs.

Qconomic recovery in 1959.

year,

aHvprticino

on^^^ncreaTed
on mcreasect

depend

F1011ls w11^ depend

common

stock commitments at this time.
,

background'hard than anything else.

its

„nf3

fUmg. and h^h-cost advei ismg

basis, we advoprudence in the

toward

budget

' eral

b;usiness p ctuie as en-

downside correction.

investment

hnnidnrp

level of stock prices would be vulnerable to

of the world economic situation

„

such

Rising

Wrfner

the present
period of over-enthusiasm could have some of the

••

competitive problems increasing.
_
In 1956 dividends on the Dow
The fact that the stock market erence Jor convenient-sized autoJones Industrial Averages (ineluding stock dividends) hit an is now at peak levels, and that mobiles. The readily controllable
all-time peak of $22.99 per share, stock prices are not low by most nature of these factors suggests
The 1957 figure was $21.61 and past standards, makes the formu- that the fundamental position of
1958 should be about $20.00. At lation of a
the dollar need not at present be
unconsidered to be grave.
565 the yield currently is 3.5%.
forecast for

political bent will change so as to make

With 1598 earnings of about the, coming
Jones Indus¬
$27.50, the $20.00 dividend "pay- year a chalout" is 72%. The average "pay- lenging astrial
Aver¬
1959,V up 7%~from 1958 may be a out" over the past ten years was „ signment.
ages, the rise
bit optimistic,
but this industry 59%*
" ■
- At a ti
this
year
should afford favorable support to
It may bo noted that (a) >the su ch as the
from 436 to a
the economy.
3.5% yield is historically low;*(b) . present it is •
new
all-time
'K'f|
(6) Automobiles exert an im- yields of over 4% are available on especially im-.;
peak of 567,
Tl'n portant influence
on
the total good-grade bonds; and (c) the,lportant that «
has been mo¬
August Huber
scene
of economic activity. The relatively high 72% pay-outin
we make sure
tivated
by:
prospective level pf consumer in- 1958 mitigates sharp 1959 divir:-.;that the basic: ■
(a) present business recovery; (b) COme and a better debt position, dend increases despite the pros- underpinnings .;
anticipation of earnings improve- suggest
an
encouraging
back- Pect of improved earnings.
of our eco- :ment; (c) persistent buying on.ground for new car sales next
Maynard
%
nomicv struc-*
a
long-term "growth" basis for year. It is still early to make defit u r e are
caprtal appreciation, and (d) so- nite forecasts as to the whims and.
As a market factor, inflation
sound, and
called hedging in common stocks
inclinations of automobile buyers would appear to be over-empha- will remain so, because the stock
against inflation.
relative to new models The real sized during
this phase of the market reflects a great deal more
With the market as measured
test
in consumer acceptance
of market. A large Federal budget. than investment. arithmetic
it
by most recognized averages hav- new models will come early next deficit, and a resultant increased reflects the hopes and fears of the
ing recently reached the highest year
present estimates for 1959 money supply is not to be mini- world's property owners, and at
level in
history, it is apparent are around 5 5 million ears
up
mized, and the longer-term pros- the present time, unlike a year
that a virtual boom in business
from a dismal 1958 sales level of ' Pects suggest that a secular trend agG . hopes are clearly in the asand corporate earnings is being
,
t 4.4 million cars (370,000 are:
"in/la-',-cendant.so-called creepingforecast,
toward
Therefore any
envisioned.
Should
the
present
imported foreign cars)..This
sprobable of con- to be successful, must begin with
hlBhly ,no.u
«onomic recovery, however con^ com£are wfth 61 ;million.
naecnaua number ;of
examination of nit
tinue along lines more moderate
,
1957 and 7 9 miIlion in the
The wide publicity given earlier., the basic factors on whIch these
than
that generally anticipated,
19,-5
• to a prospective $12 billion Fed7 a hopes* must rest.
Let us briefly
the

Dividends

factor.

prime

banker and analyst
cash or
bond holdings preferable to stocks. Forecasts: rising corporate
earning power for the next several years; increasing inflationprompted demand for equities; and relatively low supply of
stocks with improving earning power and quality. Mr. Maynard
finds present foreign developments favorable to stock market,
but anticipates companies doing business abroad will find their
doubts

correction,

excess

higher in 1959, the well known investment

h
:

the

good investment value. Summarizing the ."inexorable-forces ;
in the economy" that v. ill propel investment grade securities

the potentialities of the future are; 7
often discounted too far in ad'*

improve to about $33 billion,
$4
billion under 1957.

may

of;

anticipation and

atively high ratios to nearer-term
In the process, however,

reaction of fairly sub- - Over-all capital spending lor new
in November,. plant and equipment fell from $37
underlying market sentiment re- billion in 1957 to $30.5 billion this
mained bullish. The reaction was year and a similar rate is indicated for the first quarter of 1959.
followed by a
For all of next year the figure
rapid recov¬

! or still
1 Existing

earnings.

to approximately the
pjevious peak
price. As
measured
by

are
strong in the market ;
place, stock prices will sell at rel-

stantial proportions

ery

Maynard reviews the basic and mere immediate position
stock market, concludes' it is. not unfavorable,, and
indicates a few of the areas which he believes seem to offer
Mr.

hope

increase of
the - "averalready selling
periods

*■

during

-Obviously,

with regard to

„

are

WALTER MAYNARD*

year,

the influences of

"boom" proportions.
Despite

565

J '

Senior Partner, Shear.on,

.enthusiasm and exuberance, when

(2) strength of
corporate earnings, and extent of business improvement in
1959. While next year's economic activity will better that of
1958, it is likely, in Mr. Huber's view, to fall short of so-called
.

this

at 15.6 times such

sionary forces are strong,
as

share,

$36.08 per
-30% over

•'

•

Hammill & Co., New York City
Governor, New York Stock Exchange
Chairman of IBA Federal Taxation Committee

restora-

peak 1957 earnings of

By
;

will allow the

Stock Market in the Coming Year

grant that 1959 economic

of the

tion

prudence in undertaking new common stock com¬
this time. While not doubting the long-term expan¬

caution and

conditions

banking house suggests

Street investment

Wall

City

times.

11.5

was

Trask & Co., New York
New York Stock Exchange

Partner, Spencer

stmnalv

was

reversing
the

nvemm

thl

economy

P11t

it!

downward

this

year.

produce at induStl'y is only 12 the international
budget,
normLiyfots0™!"8' deterioratiol> p0Sa1' The °U the rate of all°WCd result of balancedmarkets is rea- fLt'th^t'fheSofkfifafkft ta the
the torget xnai me siock marxei 111
IOrgei inai
SIOCK mdiKeim
—"r---to

dnv«
rinvc.

a
n

month
mnntVi

and
onH

mnnvts
imnnrtc

arp
aw

vpm

ui„

rv,^r>_

sssiutsss wMSund stoSseuasTsy;
sntrstf is ISM
k s^.,srfthfS2vsp zsssssastsx. es swcjtfwi sfcsl
budeetLv deficft fn
ques?,on Is lar8ely one of whether per, lead, building materials, tor- exports this year have resulted
gxtoaoraiiwrilv low^'pricesstsresBwwK* WS- 5"
vear

The

t"s""

the

should^be redUed fa'llln(g? ""P1'?™1116"1 w'11 be su£" est products, cement, etc.
from a combination of factors, of
(higher
tax
collections
and/
|lcient to sustain this high price The Federal Reserve Board which the most important may be
^mailer increase in budect snend
4U13 age to raise 11 more recently prepared an index our militarv aid programs (includforeign aidT exnorts of caoibudget spend- appreciably 5further.
(1947-49 —1001
measurine
the inP
ing) unless war crises develop.
u®*'
—-iuu> measuring tn
ing military aid), exports oi capi
Currently, the Dow Jones In- country's capacity to produce tal by industry, our national taste
hiiilat*
nS ?
economic austnal Averages, simply to use basic materials—metals, textiles, for travel, our enthusiasm for
ni private industry does one tool of 1958
r-^ ♦d-equipment
measurement, is around paper, petroleum products, ce- scotch whisky and a growing prefspending by
565, with

ratios
The aspects of
DOlitical action that can
P harmtul to tne slock maritej
be harmful to the stock market
jie fn tax Dolicy, labor policy, and
reguiation" including anti-trust
aad these seem WOrth
Gxaminin^ briefly

*a talk by Mr Maynard before the

In the realm of tax policy, Mr.
Continued on page IS

next'ftoal

vear

smaller

increase

ti10

•

not

promise

stimulant

to
b

provide
o o m

strong

conditions,

$27.50

per

earnings.

earnings of about ment. Whereas productive capac
share. This is 20 5 times Ry and actual output were closely

Continued

on page

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The Commercial and Financial Chronicle

Thursday, December 25,

1958

(2704)

Corporation—Review—Loewi & Co., Incorporated,
Street, Milwaukee 2, Wis.

A. O. Smith

Dealer-Broker Investment
send interested parties

Street, N. W., Washington 7, D. C.
and Associated Industries—Review—Purcell

Auto

1'
Burnham and

Broadway, New York 4, N. Y.
Burnham View

Monthly Investment letter

—

Company,

Homsey

Pont,

By GEORGE A.

than

Pittsburgh, Pa.

Bacon,
Whipple & Co., 135 South La Salle Street, Chicago 3, 111.

and the 35 over-the-counter industrial stocks
Quotation Bureau Averages, both as to
yield and market performance over a 19-year period —
National Quotation Bureau, Inc.. 46 Front Street, New York
4

Treasure Chest

in the Growing West—Booklet describing in¬
opportunities of the area served—Utah Power &
Light Co., Dept. K., Box 899, Salt Lake City 10, Utah.
;
Victims of Tax Selling — List of 45 selected common stocks
which appear to fit this category—Francis I. du Pont & Co.,
1 Wall Street, New York 5, N. Y.
...

dustrial

World Trade and U. S. Gold Reserves

Hanseatic

—

Discussion1—New York

Corporation, 120 Broadway, New York 5, N. Y.
^

tons

against
Eighty-

1958.

of the overseas ship¬
activity

Europe.

Western

[

million tons in

1957, had

The drop

has been in abundant supply and
American exports to

rope

in steel and exports.

diminished.

for imports

the need

Western Eu-,

continued

1958

high

they have because of long-term

previously made,

commitments

industrial activ¬ together with the threat to fuel and their volume: has helped swell
oil
supply caused by the Suez coal stockpiles that already w6re
already has returned
of record proportions at the start
to near-full recovery and likely crisis.
of 1958. Until these stockpiles are
will advance to a new peak in
Blames Steel Decline
lowered
u
'
considerably,
Western
1959, the bi¬
The drop in the U. S. consump¬
tuminous coal
Europe will want to limit imports
tion of metallurgical coal accounts to special grades of coal.
consumption?
export total for the largest tonnage loss in
Late in the summer, embargoes
will climb 1958, and its magnitude was un¬ were
placed in certain countries
next year
to foreseen. A year' ago it was esti¬ of Western Europe on coal imports
get back only mated that steel output in 1958 to be bought in the future. They
half of the would be down but only to the do not apply on shipments already
tohnage it lost extent of decreasing the use of under contract which include the
metallurgical coal by four million. bulk of the
in 1958.
:
shipments to Europe.
ILis esti¬ It now looks like steel activity This
action
was
followed
two
mated that will fall 25% and the consumption
weeks back by an announcement
consumption Of metallurgical coal will drop 31 that the
European Coal and Steel
plus exports million tons. In turn, higher steel Community wanted to have its
in 1959 will activity will account for a sub¬
existing American coal contracts
total 450 mil¬ stantial part of the increased coal
modified so as to reduce tonnage
lion tons, 8%
consumption in 1959. Steel pres¬ volume.
George A. Lamb
The six nations of the
under 1957 ently is back to its 1957 rate and
Community buy over 80% of the
but
7%
above 1958.
The con¬ probably will approximate that American coal exports moved to
sumption-export
level
was
490 pace next year, which will push
Europe and, if efforts are success¬
million
tons
in
1957, and will metallurgical coal consumption to ful in cutting imports, the Ameri¬
Unlike general

which

ity,

*•

tons

boomed between
a slow up in
in fuel needs re¬
sulting from the industrial dip
was accentuated by a mild winter
and a drop in the tonnage of coal
used for heating. With the Euro¬
pean mining rate maintained, coal

market for United States bitu¬

1958 decline to decreased activity

utes

which

and

1954

parison between the listed industrial stocks used in the Dowused in the National

million

Europe,

but that
than the
expected in the nation. Mr. Lamb attrib¬

general improvement

Over-the-Counter Index—Folder showing an up-to-date com¬

tons,

three

Industrial

1959, compared to about 421 million tons in 1958,
the economic uptrend in the industry would be less

—

Jones Averages

million

million tons but
points will want no more

1958.

probably would increase to 450

minous coal

New York.

Circular

take

overseas

Surveys

Manager of Business

—

gain

of a slow
Next year, Can¬

because

market.

will

ada

LAMB*

Consolidation Coal Company,

Yamaichi Securities
Broadway. New York 7,

Oil Stocks for Long Term Appreciation

exports

overseas

Coal economist believes the

Company of New York, Inc., Ill

coal
.

Bituminous Coal in 1959

dustry.

Current information

consumption is to increase, a fur¬
ther slide in tonnage is due for

is a

ments move to Western

Co., 120 Broadway, New York 5, N. Y.
Japanese Market—Review of current situation—Nomura Secu¬
rities Co., Ltd., 61 Broadway, New York 6, N. Y. Also in the
same review are brief analyses of Asahi Breweries, Nippon
Hodo, Nikkatsu, and of the Japanese Nonferrous Metal In¬

Decreased Exports

Notes

five percent

N. Y.
to Use Options—Descriptive booklet—Filer, Schmidt &

—

reflecting additional
competition.

Although U. S. bituminous coal

Philco.

New York 5,

Japanese Stocks

3%,

Company—Report—Shearson, Hammill & Co., 14 Wall Street, New York 5, N. Y.
White Motors—Data—Herbert E. Stern & Co., 52 Wall Street,
New York 5, N. Y. Also in the same bulletin are data on

oil and gas

Universal Consolidated Oil

Street, Boston 9, Mass. Also in the same circular are
data on Carborundum and New York Air Brake.
Electronics at Home — Domestic uses of electronic items—
National Securities & Research Corporation, 120 Broadway,

change in 1958. Next year,

they will total 32 million tons, a
fall

Inc.

Wall Street, New York 5, N. Y. Also available
on Robertshaw Fulton Controls Company.

non, 11
•r bulletin

Milk

How

little

Corporation—Report—Thomson & McKm-

United States Steel
•

Company, 15 Broad Street, New York 5, N. Y. Also avail¬
able is current Foreign Letter.
Canadian Business Trends—Review—Bank
of Nova Scotia,
Toronto, Ont., Canada.
Drug Stocks—Analysis—du

Shipments to retailers have had.

Street, New York 5, N. Y.

Crown Cork & Seal Company,

million

four million
It is expected

to be 103 million tons in 1959.

& Co., 44

Mills—Report—Lerner & Co.,
10 Post Office Square, Boston 9, Mass.
Sundstrand Machine Tool Co. — Memorandum—The Illinois
Company, 231 South La Salle Street, Chicago 4, 111.
Union Carbide Corporation—Analysis—Harris, Upham & Co.,
120 Broadway, New York 5, N. Y. Also available is a report

& Co., 50

the other

101

down

1958,

tons from last year.

Studebaker-Packard vs. Botany

pulsion of rockets and earth satellites with particular com¬
ments on Tracerlab, Inc. and Combustion EngineeringAtomic Development Securities
Co., Inc., 1033 Thirtieth

tons

Co.—Memorandum-—Shumate & Co.,

Building, Dallas 2, Tex.
Strategic Materials Corporation — Study — Candee

of projects for nuclear pro¬

will

industrials

First National Bank

Wall

Atomic tetter No. 44—Discussion

Coal consumption by

Gas

Southwest Gas Producing

mentioned will be pleased
the following literature:

It ii understood that the firms

the

use,

Co.—Memorandum—A. C. Allyn & -Co.,
122 South La Salle Street, Chicago 3, 111.
Also available is
a memorandum on U. S. Life Insurance Co.

Recommendations & Literature
to

volume of which
will change little next year.
iy
tion

Company—Bulletin—Schweickart & Co.,

Broadway, New York 6, N. Y.

Southern Union

and sta¬

tonnage for powerhouse

225 East Mason

Southern Natural Gas

steam locomotive

The

extinct and what is left
of the railroad business is largely
is nearly

New York 5, N. Y.

Wall Street,

1953.

and

Corp.—Memorandum—Walston & Co., Inc., 74

Aircraft

Rohr

Alaska Airlines—Bulletin—-De Witt Conklin

Organization, 120

Broadway, New York 5, N. Y.
Marietta Company—-Report—Milwaukee
207 East Michigan
^Street, Milwaukee 2, Wis.

American

Company,

Arizona Public

Service—Analysis—Reynolds & Co., 120 Broad¬
New York 5, N. Y. Also available are reports on Celotex
Corporation, Continental Can Company, Inc., and Gulf Oil

way,

Corporation.

Bank

New

York

—

Bulletin

—

Laird, Bissell & Meeds,

120

Broadway, New York 5, N. Y.
Central

Louisiana

Electric—Memorandum—Robert

Baird

Co., Inc., 110 East Wisconsin Avenue, Milwaukee 1, Wis.
Co., 45 Mont¬
gomery Street, San Francisco 6, Calif.

General Precision

Equipment—Review—Ira Haupt & Co.,

ures.

Ill

North

St.

Memorandum

—

Muir Investment

Ontario

Portland

Co.

Oil

Gas

Corp.

years

Co., 36 Wall Street, New York 5,

falls

supply,

years

future

the

shipments.

Even

10%

advance

re¬

163 million tons of bitu¬
minous, 10 million tons more
than in 1958 but only six million
tons above 1957. This is estimated
the premise that there will
be advances in thermal efficiency
upon

Atomic

will

half

aside from premium

1959

metallurgical
cumstances
overseas

the

cir~

estimated

that

coals.
is

coal shipments next year

will total 25 million tons, of

which,

20 million tons will go

latter

The

only

to Europe.
40% of the

million

over

oil

while

gains

Rodman & Renshaw

address

pects at
Pa.
r

University

Business

Pros¬

Pittsburgh,

Coal burned by the

and retailers.

by Mr. Lamb before the

Conference

the

railroads
four

will

million

eight

from

between

tons

Bituminous Coal Consumption and Exports
r
; ■ (millionrtons)
..

(brrrtinps

Utttt

•

Electric utilities
Coke

1957

—.

plants

UJtshrs

153

108
8

Railroads

1959

]95S

157

163
-

107

105

101

103

378

335

377

414

370

Other industrial

i \

Total industrial
Retail

deliveries

Total industrial and retail

Exports to Canada.

Exports
Grand

total

409
16

Overseas—

1957

To Admit Two Partners
CHICAGO,

III.

—

Rodman

Renshaw, 209
South . La
Salle
Street, members of the New York
and Midwest Stock Exchanges, on
Jan. 8 will admit Paul L. Hackbert
.

coal

overseas

Fifth Pitt

TROSTER, SINGER & CO.

characteristic

add

been

offered

quire

caused

consumption

*An

view

speculation that has

the

excess

gas

eration

1955 to
But the
1955-57 had unusual occur¬
because; the

and

natural

tons; and (B) the sudden increase

Co.—Memorandum—Goodbody & Co.,
Broadway, New York 6, N. Y.

in All

uncertainties

The
to

and gas make further
fuel supplies for power shipments made to Europe in 1957.
in overseas exports to record vol¬ generation. - :
Left among the consumer groups
umes due to European fuel needs
are the railroads, other industrials

Company—Analysis Kid¬
der, Peabody & Co., 17 Wall Street, New York 5, N. Y.

Reason's

estimate

Energy Program that raised coal

Rockwell Manufacturing
115

1959

cilities connected with

Insurance

decrease, however, as hydro
with an abundant water

favored

mainly by (A) rapid
completion of electric power fa¬

rences

N. Y.

Washington

will

1957 had larger tonnages.

Analysis—Carothers & Company,
Inc., Mercantile Bank Building, Dallas 1, Tex.

Providence

con¬

trend line that shows

itself

—

Ohio Oil—Bulletin—Bache &

to be

Cement

Co.—Circular—Price, McNeal
Co., 165 Broadway, New York 6, N. Y.

Nortex

the

behind

gradual
growth for bituminous coal use.
The figure of 450 million appears

Marys, San Antonio 5, Tex.
Also available are
on
Marquardt Aircraft Co., Nationwide Corp.,

and Piedmont Natural Gas

tons

substantial shrinkage in 1959.

largest

with
improved ' business
condi
fuel oil and
at
dump tions, which are likely, and per¬
haps a more normal heating load
prices, capture larger shares of
the power generation. In 1959, it during the coming winter, West¬
ern
Europe will have an abun¬
is figured that utility steam gen¬
comparatively low taken by
dance of tonnage during the first

This

Corp., 101

memoranda

Lake

million

customer, will in¬
crease
its power output by 2%
in recession 1958. Its use of coal

movement will have

overseas

can

industry,

utility

electric

The

coal's

sumption-export total in 1958, re¬
sulting in a shrinkage in stock¬
piles and coal in transit.

Broadway, New York 6, N. Y.
•
— Memorandum—Metropolitan
Dallas Corp.,
Vaughn Building, Dallas 1, Tex.
—

421

1958 based upon year to date

Georesearch, Inc.

Jantzen, Inc.

107 million tons.

million tons in
fig¬
Mine production has lagged

approximate

Foremost Dairies, Inc.—Report—Dean Witter &

490

421

450

Ira

and

Kaufman

partner¬

Mr. Hackbert is Manager of
the Municipal
Department; Mr.
Kaufman is Manager of the In¬
ship.

vestment

Department.

F. I. du Pont Adds
("Special to The Financial

Chronicle)

CHICAGO, 111.—Robert V. Bal¬
lard has been added to the staff
of Francis I. du P~nt & Co., 208
South La Salle Street.

the Aguadilla

around

What Puerto Rico Is Doing

guez

areas/;"" /"

lars

contemplated /.improve¬

ments that will make

real

the

small

turbulent

portion

owe

may

he in relation to the peaceful
pat¬
terns of the whole.
This, as we

This adds up to 60 million dol¬

Improve Industrial
\

and Maya-

dif- ;

Governor of Puerto Rico

themselves; and that both

know, happens all Oyer the world.
I believe in free negotiation be-:
Cupey.J Alto

ference in the quality of the local ; tween
management and labor. I
telephone system.: In addition, the have said before and I say now
that
the
laying of a submarine cable be¬
racketeering type of
tween here and Florida, on which labor union is-a crime

By HON. LUIS MUNOZ MARIN*

to the -people: of Puerto Rico.
No matter whether you were 1
born
in
Cleveland: t Heightsor
owe

Ricans
and

now.

your

are

against the- efforts J of

Puerto Rico's Governor

specifies current steps his government
is taking to further private industrial growth, and offers
assurance
of free labor-management negotiations with full

'
■

The
of Federal Wage Review

protection, for the rights and interests of all concerned.
.

Governor is proud of the securancfc

•

bi-annual

basis;

■.'

stepped

and: aspirations^ of all workers, of all

begun,

improvements,;

•;

our

people;

there

much yet to be done for the good
of all. Let us strive to do it with :

managers, of every decent citizen.

will give us many more channels : Legitimate movements or
organi¬
of dependable clear
communica-; zations cannot be judged by their
tion with the States. The Govern¬ rascals

boldness,
withinitiative, -and
working together with the " serene

alone, but rather by how conviction that

A little

cata-' they deal with the rascals in their
^
midst. This government will help

best toward

doing,

we are

fine

our

common end.

them

wholeheartedly in their de¬
year ago the Water;
Authority- made a sig¬ clared ihtentidn to eradicate the
they appear/.!

over a

Resources

nificant decision to double electric! racketeers—should
power

Development Bank activity to further induce industries; and promises prompt cooperation should labor gang■'*; t :->• >6/
I? / * sterism ever appear. .-/?;'y;-:y.■ >• ;•••,(*'!•>.
-

already

mechanical

played an important
lytic role in that/too.

containership services by trailer ships and promises all out
effort to obtain lower conference shipping rates; reports
on
increased communications, and power investments and

[

other

ment

technological breakthrough in

sees

work: has

tyou- are afl Puerto ?
rYou have done
much/

beholdeir to you for
splended contribution; to the

generating capacity within'

four

years.

ment

of many millions

Any

such

canr be

thankful

Dempsey-Tegeler

that

that corrupt kind of unionism has
not befouled our workers and our

commit¬

of dollars

'/ Graham: W. Walker

calls for careful deliberation, and community, and we shall certainly! will become
businessmen; will -appreciate the: cooperate Ayith industry and with,
study and consideration, that pre-; the workers to ' prevent thieves
ceded this decision,; Yet we must, and gangsters/from taking over

Jan.

partnerin Dempsey-

has never* industry, too, feels that the end is
smooth and well worth serving,
keep abreast of industry's demand the labor* movement in, Puerto
easy
achievement. Rapid social* " One of tlie most irritating prob- not only for quantity of power Rico. ;
-;:/■: / •-••;/.
/- • • v;;changes are often marked by con- lems of industry in Puerto Rico but for improved service, and I
), As I told
a labor convention in
was the. too
frequent reviews of think the new program now as¬
flict, and al¬
Santurce a year ago, in the same
minimum
wages, v;. This
govern- sures that we will. • /a
ways
call for:
way; that
the
Government- of
•'
ment worked long and hard to
a great degree
Activity of the Government De¬ Puerto Rico had to create new
correct that condition.
When it
of understand¬
velopment Bank has been stepped political concepts and new admin¬
appeared" that • the improvement
ing and;con¬
istrative instruments to
Economic

•-

been,'

'progress

any where,

a ;

ciliation by all

worked for

had

to be delayed

was

segments

this

arduously
by the

year

"• as

further/ inducement

industries

both

from

the

better

en¬

able it to carry out economic and

States

and Puerto

Rico,- Morq than one- democratic /policies,
the: labor
adjournment of Congress, I went fifth of its
total loans have been movement must face up to its re¬
to Washington myself to work for
made in the last two years/Those sponsibilities to develop new creait.
As you know, we were suc¬
in Puerto Rico
who are originally from Puerto tive methods of negotiation which
cessful
in
the areas of
getting the Federal Rico will be interested to know will not slow down
through un¬
conflict have
Wage Reviews put on a bi-annual that four and a half times as
many necessary stoppages of production
basis, a measure that benefits not Government Bank and
beeq small in
PRIDCO the process of bringing economic
only management but wage earn¬ loans
comparison to
'
/ and
investments are V in abundance for all.
;
ers
and the economy of Puerto
the rapid rate
Puerto Rico-owned firms as there
In my last message to the legis¬
Rico as a whole.
ofourecoare
in
continental-owned
com¬
lature I commented that it seenu#
nomic expan¬
Luis Munoz Marin
Another of
your
problems is panies.
to me that the constructive devel¬
sion. Certain¬
shipping, and shipping costs. The
opment of labor-management re¬
ly ..they have
government has prosecuted vigor- Promises Free Labor-Management lations which
promise full protec¬
been, and are, far less than in the Cusly the case against the 28.8% ;
/
.
Negotiations
tion for the rights and interests

society.

-;•

Fortunately,

Tegeler & Co. of St; Louis, mem¬
bers of the New York Stock Ex¬

change. Mr. Walker is
in Gregory & Sons.
/

increase of the Atlantic and Gulf-

Puerto Rico

not

advancing

Accelerated

■///:v

pace.

would

such

this

take

V. /

Morgan Davis to Admit

prove the industrial climate that
is so important.to growth. No one

place since the present
administration
first took office
realizing

how

areas

and

progress,

an^ffer

of containership service, the so-

that progress is directly traceable called trailer ships,
I don't have
to the efforts of government it/to tell you what a complex prob-

self

promote

encourage,

support private industry.
_.

,But l

long

.-I

ean never

;
•

■

dwell forever}

without recalling the

httle

,22

Rican

containerships

boy whose parents showeied
him with gifts at Christmas time.
appy as

with

his

ou^

"Why

So let

now

for itself

allow the past

and

consider

greater

■

...*:

will

they

owe

this heavy traffic run.

another

problem »of /yours
can

personally

and

-Telephone Company..The Economic Development ;Admxmstra-

-jective.. The ultimate objective is
today, as it was in the beginning,
the eradication of ipoverty m
■Puerto Rico and the achievement
:cf a decent standard of living for

^he Government Bank,
which have been working for im-

But we believe in
intelligent managein private investment

needs of the industrialization progrf™;

merit.

with

think you
that

•ail the

should

people.in

industry,
ment

and

service, are working with
the Commission in an advisory
capacity on the communication

I have no

*An

address

•

The contemplated program is
designed to double approximately
doubt that our • telephone
network
within
five years.

i»y Governor Luis Munoz

hag

San- Juan,

Dec. 7, 1958.

Already, the

completed

dollar
Convention,

'•

;;

December 19, 1958

;

"/:."/:

:;/•'

■

Freight Company
.'./:/.'

3:30

•;

■

P.M., Eastern Standard Time,

January 6, 1959.

share for each
will expire at
' /
.

The several Underwriters have agreed, subject to certain conditions, to purchase any
unsubscribed shares and, both during and following the subscription period, may.' V
offer Capital Stock as set forth in the Prospectus.
,

The Prospectus

.
_

ment

be obtained in any State in which this announce' /"- ,*' "•
from only such of the undersigned or other dealers. . -

may

is circulated

brokers

lawfully\offer

may,

these

securities

such Stat*.

•//'"'

;

}

Merrill

Lynch, Pierce, Fcnncr & Smith

'The First Boston

Corporation

Eastman

Goldman, Sachs 8C Co.

Blyth & Co., Inc.

Dillon, Union Securities 8i Co.

Harriman Ripley & Co.
...

....

Forgan & Co.

Smith, Barney & Co.

Corporation

/
|!

Kidder, Peabody & Co. /

Incorporated

Lehman Brothers
Stone & Webster Securities

•' Glore,

cleared

company

eight

improvement
SeriOUS

million

that

has

bottlenecks

Hemphill, Noyes & Co.

•

Baker, Weeks & Co.

■.

Putnam & Co.

J. Barth&Co.

Newburger & Company

)
'■<

''". White, Weld & Co.

Paine, Webber, Jackson & Curtis /

)

essential and honorable means

to that end.

Company's outstanding Capital Stock are being offered the right to

assure

of mine. Last week a public
hearing was held before the Pub-

not con-sti lute, the sole and ultimate ob-

govern-

the

/ /'"

you,

will all agree

attitude, of-this

member,of the Ex¬

Service Commission of Puerto
^ on a proposed.; 52 inilllon
dollar expansion program of the

that this

change.

subscribe at $35 per share for the above shares at the rate of 1 new
"A shares held of record December 18, .1958. Subscription Warrants

continue

certainly,; I

-Never have any doubts

will become

/Telephone service has been

Explains Policies Aiding Private
Industry

Seth

Thayer to partnership; Mr* Thayer

.;•/

203,897 Shares

Holders of the

to bring every
to bear on the air lines
to give Puerto Rico the fast service

industrialization.„^•

:•

No Par Value

pressure

operations, insure a fair return on
your investments, and epcour&ge
still

transportation but bring a real
0f stability to shipping

time time to facilitate private

Exchange;

admit

port facilities to insure ample accommodations for the new jets, and

government is making at the present

will

Capital Stock

of the efforts that this

some

purposes

measure

speak

today give
technological break-

•,

■'*

United States

there

reaction.

pioneering

management and labor

through that will not only speed

;

the

of the New York Stock
on' Dec.

buy-any of these securities, The offering is made only by the Prospectus.

■standing

that both

effective

industrialization

for

and

somber, pensive mood,
*
you look so unhappy
*
'.
among
all your ^ Likewise we have^succeeded m
hew-gifts," he asked. "The gifts
a third airline-into the
are
nice/all right," said the ^.S.-Puerto Rico service with
youngster, "but now I'm worrying drastically lowered rates, and we
about whether a'll get anything are currently urging an early start
"
of re«ular 3et service. We have
for Three Kings Day. "
inree Kimrs Dav
begun a four and a half million
Well, it's a perfectly human dollar improvement in our airin

one

how

and

Rico

Puerto

promjse 0f

?2Ulrv>

.toys until Three Kings
Day when his older brother found
him

,0f

operating

/■"

the firm stand this administration
^00jc jn order to get trailership
servjce successfully started.
The

•

accomplishments

past

lem in labor maladjustment this
presented. And you all know of

and

:
n

stimulus

greater at¬
of harmony

matter

concerned

/: This announcement is tinder no circumstances to be construed as an offer to sell or as a solicitation

positive role in the establishment

much

command

tention than the

.'
*
■
V
/But-we have gone beyond such
defensive action alone to take a

have taken

Without

invariably

all

States;

contemplate the changes that

can.

The trouble spots in our society

Morgan Davis St Go., 63 Wall
Street, New York City, members

?ral Maritime Board, we will carry
case, if necessary, to the
Supreme Court of the United

im-

doing to

government is

re-

ceive satisfaction from the Fed-

op-

portunity to review briefly what
the

Shipping Conference.

If the Commonwealth does not

;

United States where the economy

partner

xv~

\4tw/'

Greater

Investing of Pension Funds

Attainable

Are

earnings above the mediocrity of bility and adherence to high fithe averages.
d u c i a r y obligations since the

systematic

It is submitted that a

of periodic purchases of
diversified, professionally select-

program

It seems not unreasonable that
managed funds
should earn from 10 to 20% more
the greatest retirement benefits.
than the average results of an
A 100% investment in common unmanaged fund. It is concluded
stock is quite contrary to "ortho-)' that a well-managed pension fund
ed

By PAUL L. HOWELL*

Century Fund Pension Investment Study

Only through the most productive investing of pension funds
the ravages of inflation be offset asserts financial consult¬
ant Howell Charging some labor union and company ultraconservative funds with committing an economic crime against

Let

aged members, Prof. Howell cites superior performance
fixed income securities. Favoring

professionally selected stocks, the author
concludes: (1) pension funds are uniquely suited to a dollar
averaged common stock portfolio; (2) many pension funds
have been wastefully and ineffectively managed; and (3) that
in the long run, pension funds will be no sounder than the in¬
dustrial economy to which they are tied.

imperative

which

tirement reserves

being

dynamic in-

mulated.
61

above, it is submitted
that the following criteria should

ckholders

execution:

and employees

alike

the

inef¬

ury

utili¬
of

zation

important
earning asset
like

■flftfirin

nfentpolicy

fre¬

Howell

Paul

yields and rising prices that pen-

the

sion, funds,
should

Pen¬

horse.

the

before

cart

This is putting

stocks.

common

Investment manage-

be made

' companies

to earn as

intiation,

be permitted

whicn.

There

(3)

look

°f
economic

GS6 gl0wmg

Densio^funds' °
pension funds.

(1) A qualified pension fund is
completely exempt from income
and capital gains taxation.
'
(2)

There is

period

extremelv lone

accumulation

tribution

and

funds.

fact,

though

emnloveec;

there is

TSetthat

vestment

"dollar

yov

•

rru

•

tionto

Tchfevine

the hbiecUw oi

Whither

this

This

averag-

formula

poorly

Con-

regarded

solidated Edison whose stock

was

available in 1949 at an average
price of $25.00 to yield approximately 6.4%, on its then $1.60
dividend.
At the 1958 dividend

rate of $2.80 we now get a return

of full

Because

investment,
growth, absence of catastrophic
hazards, an4 dollar averaging (in-

programming)

of 11.4%

case of

illustrated

well

rti4"e™

insurance

ijfe

dividend

the

factor

CTable II

Below

imDact

Thf>

cost of 10 years

our

growth

dl fnThe
tt

take a

ago.

fensive position with the resultant
lowering of overall portfolio yield.

comnanies
forth

set

are

exDectatfon

f 5%

Kn Z
An

incrence

3 0%

ever T

That" these resal!s

Pronoanuced-

tl0ns-

*anA

9^ ^O of 1955 the

a sum

through

periodic
contributions
for
earnings period of 40 years is

follows:

not

Earnings

payouts can be
years in advance.

Employers'

Rate

Contribution

2.50%

Insurance

(6) In-flow of funds (contribu¬
and earnings)
will exceed
a substantial margin for

tions

Sustained

is expected for the next generation.
funds

objectives

consideration

usually
the

fol-

(^Tcerta^nty^of Yeturn- Ys')1 Ade^'
quacy

of return: (4) Tax aspects;

(5) Marketability; (6) Liquidity:
(7) Capital appreciation: (8) Collateral value: (9) Freedom from
care:

and, (10) Maturity. The at-

tainment of

some

of these objec-"
j

fives necessarily conflicts or limits the
achievement
of
other

objectives.

3.00

fare Plans, Trustees

New

York

Health

and

Wal-

Administrators.

City.

„nnmvs

which earned approxi-

mately 3.06% in 1957, were elinn-

?.s

hmita ion that they are eompensated
by trading commissions and

statistics also show for

SEC

interested in the more common

are usually

funds

trusteed

corporate

stocks -have

that

in-

now

spectacular short swings of the On market value basis common
creased to 25% of the book value.
market.
a

sometimes

stocks

Costly

Portfolio

"Balanced"

urged

that

33%.

exceed

now

portfolios,

many

For

where the

even

stock component is' rela-

common

portfolio should contain a "proper tively small, the market apprebalance." This is of utmost im- ciation has been sufficient to more
portance in certain types of port- than offset the decline in bond
R>lios> but here we arc talking prices. In other words, common

dollar than bones. been' more defensive
ftockshave
-

diversified

ab™4 large

evera^ec1' ful1^
invested, long
term, growing funds with no need

As-of 1951 U. S. Government

5.00

33
26

Fixed dollar obligations, since the postwar period, yields for ATT

Life

During.-

Type

should

amortized cost.

1929 and
Actually much of the stock
market
fall
from ,1929
to
1932

correct yield resulting frcm dividends alone on pension contribu-

merely offset the previous unwarranted rise. A person who was in

10.5%.

1948

lion

4.47

6.22

2.94

4.50

8.63

1952

3.05

4.41

7.65

equities

1953

3.11

4.36

7.38

found

1954_

3.35

5.06

8.32

soon

1955

3.29

4.94

Average

3.05

4.56

^^f^ch^ing^o^f'T k
Q

srenot far abore bare sub5i!denee leval £or most workers-

;

10.02

...

fIons so that the pension benefits plus factor.
can be nearly doubled.
'
investment
re-

.so difiicult or revolutionary?

1S1 R reasonably attainable in

below

its

1932.A

before

his

book

converted

1928 would
losses
back

have

1932-33

into profits,

who

Persons

which

practiced
dollar
through systematic
stock purchases month by month
throughout this period came out
much
better
than
persons
v/ho

technical

training,
i

•

is
be

invested

tions
For

to be

remembered

4.33%

the

that

1946

now

*
contributions

January

invested

there
would be capital appreciation of
approximately $125 or 145%? by
the end of 1957;! This appreciation
together with the $45.49 of dividends

1946

stock

received

cumulation

prices

results in

ac-

kept their funds in fixed income

$170, or a cornpound annual rate of growth of
io.8%0.
This rate
of growth is

obligations

understated

since

is made for the

Improved Institutional

fect

adjustment

compounding ef¬

of reinvested

dividends.

Environment for Common

requires
^i,:i:4-.

shown

prices,
should

averaging
6.88

Because of the time period over
Benefits of Independent
^"hich compound interest has an Professional Investment
Counsel
opportunity to work its miracle in
In addition to achieving
merely
Retirement Plans, an increase in
effective return from 2.5% to the mediocre results ef t^e averfr.0% will increase the accumula- ages there should be an important

nr-

than

The public remembers

3.07

practice"

5.17%.

price

4.82

1951

conservative

market

Although the yield in 1957, at 1957

5.17

1950

actual

turn

4.46

increase of

Moody's composite of 200 cornstocks show an average re¬

mon

4.71

benefits to retired workers is of
no small significance, whether we

Tele-

phone pension funds of $2.7 bil-

5.28

Hiffir-nlt

Bell

the

2.78

5.35

the

3.09

4.16

,vpll

125%? more than earned
ATT pension fund.
:

4.57

net yield would exceed 6.50%

and

2.96

say,

Bonds

roses.

value

2.84

not

At the
present time the market value of
most bond portfolios is. below its
acquisition cost. For example, the
market

Common

bed

bonds

mortgages can default too.

1949

Needless

is made

w iha value of the ATT rights
att
for the
of
received during this period the

—i
remembered

investment

1947

6.00

^rnings easily .obtainable during

Carning P°Wer'

1946

Is the achievement of
Conference

the SEC started.-to accumulate
figures. If the $2.6 billion ultraconservative bond fund of the Bell

Year

Nationai

(Release No.

nated it would be found tnat the
average earnings of the remaining
$l7 bilHo" <rf trust funds would
exceed 4%. It is interesting to
note that the Telephone company
has initiated a policy of putting
0% o te gmt pension fund
.advlsolf,,hava the 4radltlonal m inted common stocks

all

Preferred

Bonds

40%

out-go by

Investment

reports

1508) the overall earnings rate for
corporate trusteed pension funds,
aggregating nearly $20 billion, was
3.84% for 1957—the highest since

mental attitude. They have
been conditioned to "play it safe."
D011'4 4ake a chance. Don't do
any4hing ' for which ,he bank
miSh4 later be criticized. Further-,
<"ore, « is doubtful if banks pay
enough to attract a"d keep good
common stek men Stwkbroto
P™per

that

Security

Accumulation

4.00

include

SEC

1 .ll,
,
,
,,
mainderman, may not have the System

way.

Companies
Decade

;

Obtained

Yields

Representative

Earnings

60%

hazards.

and

pension

Experience
The

common stock hold- common stocks, but in a different in Table II. If adjustment

TABLE I
Investment

Postwar

Some Pension Fund Operating

often

they are no protection against in- common, Moody's AA bonds and
shown b^ the fact that at the end flation, may be as speculative as 200 common stock are set forth

The importance of yield in

the accumulation of

growth

panies.

25%.

remainderman.

(4) There is a complete absence
of legislative investment, restnc-

the foreseeable future.

the

are llot based on a sma11

of <• nnncinn

rafe

tenant

forecast many

New

York trustees and insurance com-:

-if1®1?, 01.} /c.
Irom 2.5% to ings exceeded $700 million.
3.5%) will increase benefits over

Retirement

in this medium by

of funds

ana

the investment

dlst.in-

are

the

dis? facto^
p~n !?56,and 1?57 ^ been^cluded market swings, and ultimately re- fact that total holdings have not
al- S to YmDlov?F^ben4fit? to the d"P?rlt? betwean 4he com" ?elve
compensation in the varied much
.
C0J.ls j° empioj ei or oenents to mon stock yields and other secu- form of a substantial increase in
As an indication of pension

(5) Retirement plans
subject to catastrophic

comparative th nostwar decade for liquidity. The need for a bond investments. Because 32% the total
overa11 returns on defense is virtually nil in such a securities-congituted of of trerine
Investment Return
These
figures
include
realized fund'•
'
mendous growth of pension funds
Because of the long period of gajns an^ losses but do not reflect
A true long-term holder of eq- since 1951 the percentage imporacramulation and subsequent dis- very substantial unrealized mar- uities can ride out the storms and tance of government obligations
Iribution . the rate of return on ket appreciation. If figures for stresses, disregard intermediate has decreased to 12% despite the
Paramount Importance of Overall
Pai amount importance ot Overall

cost

somewhat

guish between capital appreciation
and income for protection of life.
or

either

aDDrecia^

eaDttal

Ic- S arT^w MS rities would hav^ tbe?"

^ere 1S no.+nte

time.

the

all
to

amounts

m
funds
will

cumulating
pension
ever be liquidated.

«,

anri

come

complete

4bere is little need
.

the

stead

"YeYSn-um5
T

wU1

absence of any need for liquidity.
'
(4)
Pension funds should be
Invested as received, i.e., full in-

to warp

v,,lrit.0

which

advice

acceptance

indicated

stocks

the restrictions

propriate
staff.
Trust
officers,
through long adherence to fidu¬
ciary principles of protecting the
dollar value of the principal of
the estate through bond investhient for the benefit of the re-

outstanding example of this is the

financial judgment.

Let

consider

cost

return

retirementdate

eet

roffD,.,i0„inS"

nolirv

penalizedattention.

they do not have the right kind
of training, nor the time or ap¬

ing price levels.

possible consistent with the
safety requirements. Efficient use
of an important business asset Is
a
basic principle to be followed
not

Iftoree

ment

broadening

recent legislative liberalization of

ants are asked to actvise wnen

dividend

immaterial. In both cases you get
a
compounded growth rate.
An

like any other asset,

regardless

invest-

'-'"V,

CnrnriPtPnrP

Too

benefUed (or impeded) by chang-

should

years,

feasdde regardless ol staWe or

and

funds should invest heavily

?'on

nart

fund

The

common

terest.

bond

nlav

not

Dension

provide a much firmer foundation
for common stock purchases.!

(4) Absence of conflicts of in-

mar-

risinf mil The on?v situation ?rmmnfkhed hv lnw vieMinv low
Irfwhich inflation becomes fac- nawiut Irowth stock!nr htoh
torYs'in the selection of industries

quently urged
because

with,
yield approaching 6%.
50

should

increased

lawyers or accountyea? durTng^he an^are^"'to \dvi^ when

retui rt

fund.

ehnnlrl

rletermining

pension

has

averaee

past

the Dow Jones Indus—

Similarlv
trial

earning prospects.
' - < ->
(3) Administrative controls of «
common stock trading by the Exchanges and the SEC likewise!

investment adviser

^ Continuity
seJ.rjCe'

(dividends and appreciawould exceed 7.5%.

Importance of Capital
productivity (i.e.
Appreciation and Growth
v
dividend yield and capital appre¬
Although
it
is customary to
ciation) should be the primary
objective, completely overshad¬ think of yields in terms of con¬
current prices, it is most impor-r
owing all others.
(2) As a corollary of this, in- tant, in long term pension invest-

lux¬

fective

tion)

be
an

(2)

(1) In the management of pen¬

wasteful

sionthereoL have made company
reports a sturdy foundation upon
which to analyze common stock

-t(4) In addition, current controls
by the Federal Reserve Board on
margins, credit and interest rates!
considered in the are far more effective.
" ? ; /

n )

sion funds, their

afford

include the following:

that the average

be found

selection of

ill

can

Criteria

return

govern the formulation of pension
fund
investment policy and
its

accu¬

over

earn,

framework

the

agement is

(dividends and
appreciation) of 6.8% during the
period Of 1870 to 1938.
If this
study were extended to date it
net

aged

outlined

now

are

light

the

policy foi the huge le-

vestment

with great care.

investigation of the

stocks produced an aver-

common

Investment Criteria

make

able

Investment manfulltime, professional
performance of common stocks by job, requiring the highest degree
the Cowles
Commission shows of technical competence and adthat a
broad list of diversified herence
to
fiduciary ^standards.

would

costs

the record. The

us examine

monumental

diversified list of

living

should

"past with respect to investing of

of other funds not limited to

Increasing

investment

institutional

Armstong investigation of 1906.
~ (2): Improved ; accounting
and
auditing standards, together with
full disclosure and SEC supervi-

thinking. This strait jacket of the, extended period, a net:return in
excess of 8%.
*
"
"pension funds is most inappropri- V*\ytThese "professional, investment
ate and extremely costly.
"r advisers however, must be chosen

can

their

professionally

to achieve the lowest cost or

dox"

;

stocks is the soundest

common

way

Associates, Financial Consultants

Partner, Paul Howell
The Twentieth

its
(1) We have come a long way
in in developing financial resporisi-

Returns skill, if it is to live up to
r.V, 'claims, should show results

Investment

Net

Stock Investment

job

experi-

Let

look at

some

of the insti-

Union Administered Pension
Funds—A
Let

Lost

Opportunity

us now look at the manageability and judgment sup-' tutional economic changes which
ported by extensive and constant-' make common stock investment ment of some union funds which
staff research.
Such managerial increasingly more appropriate.
should be administered to r the

ence,

volume

100

ivunioer

£>ouo

xrtts

uwinmemui

u«u

r wttt«aui

wnwwtie

{mm)

;

Yields<%.

YieM %

„

4.85

1947-——

i948:_:_—

2.70

5.91

: 1949—

$2.02

46.46

2.33

5.78

2.75 i

$51.34

5.13

47.46

6.63

■

5.91

2.69

5.77

2.91;

;i952—

5.81

3.04

•

;i953—_—

5.77

3.211

1954:—:-—

5.35

3.06

1955-

4.98

3.16

1956

5.05

3.45

5.19

4.03;

1957

-2.74

46.68

4.78

: 1951—

Dividends

Priee"

3.97
,,

2.90

622

1950———

Yi«M%

•

2.62,

528

;i946_——

with

provision

3.09

6.27

56.23

3.53

had

66.98

4.09

obtain

71.73

^3.94

5.50

5.49

sometimes

2l£ %

been

difficult

4.23

117.36

4.75

be sacrificed in order to

4.07

130.55

5.31

423

125.46

higher yield, there would be few
if any capital gains to offset the

5.43

NOTE:

5.53

5.17

3.04;

No allowance is made for the value-of

$45.49

ATT Rights.

benefit of their members

as much
changes taking place, management
i hi e. TheAmalgamated remained flexible, and further
Clothing Workers have a sizeable shifted its position. In 1950 anretirement fund - invested as fol- other major revision of investlows (end of 1957):
ment poiicy was made. A decision

p o s s

r'a.i,

^'sen'nnn
dOOlfiOO

Other

"assetiiril

j cuted according to
-

worked out

Total

•

In 1957

225%.
The

§53,300,000 100.0 ™Uc
niits

------

this fund earned about

There is

invested

stocks

assets

consist

advance. .This:

purchase

on a

complete absence of any in¬
management. There is
no attempt to get better yields.
Little analysis is required to pur¬
chase government bonds'
in fact,
a

the

1957, the market
value of the portfolio was $1.8
million
less
than
its
purchase
price. This fund also shows lack
of alert management in that 16%
of the fund is in idle cash.

Ladies
and

Garment

the

Workers

Union

United Mine Workers of

America.

In the

the funds
tne tunas

art*
are

of the ¥MW,

case

invested
m\ ested, "a«s-fniinwe
as tollows

(as of 6/30/58):

Amount

Cash

(checking) §63,700,000
Time deposits
11,000,000
U. S. Govt. Bds—
35,600,000
Common stocks3,900,000
Hospital notes—
30,600,000

44.4

7.5

—

Tntn1
Total
T

«•■

«nnnnn

24.4

2.7

210
mnn

——$145,800,000 100.0

•

iCIlntas illustrated by the
us?„of-an. 1i"?ort?Kt
such

asset,
above

portfolio,

economic

constitutes

crime

the member-

Pension Fund Portfolio

•Stocks %

Mhicel. %

;

the diverse! organiza- and TIAA are contrasted in Table
tions following a somewhat simi- IV.
lar pattern with respect to ownerAlthough five years is too short
Among

is that of a pe^od to make sweeping, long-

the United
^Nations Permanent run i^e^^^ne^ation^
Secretariat, the_^Episcopal Church, the
^ ^
Amalgamated Lithographers, the any fr^ed Jncome fui d is d s^^
Fede™} Reserve Board, as well as certmgly ^great It should be emmany industrials.
*
nbasized that this
an nctual and
J
not

-Hie

Colle^R^ire^ its start in
CREF funds, from

1952,
have been invested in a diversi-

theoretical

stocks.

common

teacher

Whatever

the

university

performance.

Hnmin,n)

blue

^ is remembered that the average

yearsnow

aggregates

over

$2.7

billion

which has been invested entirely
in
bonds, primarily corporates.
record

the

AT&T

is,

fol¬

lows:

%
1946..

2.51

1947—

—

2.53

1948—..
1949

2.70

1951

—

3.02

1956-

3.14

1957

appropriate now to ex- C61umbia Gas System.
amine the actual performance of
this aggressive effort to improve

3.28

into the fund buy "accumulation
units," much as periodic purchases
might buy; shares in an open-end
fund. Dividends received on the

2.85

was

•.

approa ch

nar

invest¬
firms

still

being

Directors
(to serve for three
years) :-f-five to be elected—^Ardin
P.- Buell, Robert L. David, William

wmPJem

ganaged from
Boston.
Mr.

ley,
of

grandson
the

firm's

founder,
vard

Nominating Committee:-To. serve
for three years: Thomas E. Hosty*
and Clarence M. Galvin; to serve

at¬

Har¬

Fritz, Ben Raskin, Carson H.

Varner, James J. Coughlhi, Rob¬
ert
L.
Martin, and Michael J.
Reddy.

Mose-

tended

Moseley,

Univer-

for

of Boston,, .thenicipal Bond Club of Boston and
the Municipal Securities Commit¬

tee of the Investment Bankers As¬

sociation (New England Group)

Samuel Abrahams Admits
William M. Wolff

Dec. 16 be-

York City,.members of the American

Stock Exchange.

was

adopted for these funds which had

Jgthw.^^.'Rot,"rt
Ge^d

wiko™,

stock.

£With further postwar economic

Sp^cht

The

undersigned acted
to

chased

with

Trust Agreements/dated Dec, 31,

the stockholders of

acquired by

Vulcan Materials Company

dividends,

accumulation unit purearly in 1953 has more
than doubled five years later. The
an

chased

cash dividend, rate has fluctuated

ork

F. Eberstadt

,n(-0

hook cost. As of Sept 30, 1958
the value of the accumulation unit
had increased to $21.76..

The investment results of CREF

partners in Gartman^ Rose & Co.,
1 Wall Street, New York City,

increase of

On a com-

cash

*/r-

Gartman9 Rose Changes.

been pur-

the

(to

^rii

Charles Rose and Dorothy Gartman on Dec. 31 will become limited

negotiators and financial advisors

all of the stock of which has been

pound interest basis, this growth
exceeds 13% annually. Additional

Thus,

Arbitration

and Richard W. Rose,

Gary Slag Corporation

com¬

also have

xrr^n^

March 31 of this year

units would

serve

Ge^a^

L. Martin',
and Edward C

pure

directly com¬

worth $18.45, an

(to

Committee

price changes in the

84.5% in five years.

common

William R. O'Connell.

$150,000,000. from 4.43% to 2.84% on market
Policy was altered to permit in- value. This yield, of course, is
vestments in legals for New York
substantially higher when related
Life Insurance compames which
1
at that time included corporate
bonds, mortgages, preferred stock

year:

f0^^wo

then accumulated to

but not

one

Committee of Appeals
vears)-John L

1958.

the accumulation unit was
$10 at the end of March

low,

At the beginning of the postwar

flexible

(

Bankers hams & Co., 25 Broad Street, New Exchange, as trustees under two

worth

period the General Electric pension assets were invested entirely
in government bonds. In 1947, in
response o to
changing times, a
more

few

ment

Rowland, Jr.; .Viee-Chairmaii of
the Board: Lee H. Wagner; Second*
Vice Chairman of ,the Board:,
BeAard P. Carey.
: ; :

p a per

house,. Moseley is .one of
tional

19:

Chairman of the Board: Clarence

stock averages like the DowJones. As shown in the table be¬

GE—A Dynamic Investment Fund
.

Jan.

■'t

commer-

.following slate^to bn voted- upon
at the Annual Election*to be held

mon

1953 and

Average

the°lofof^°achere.'premiumTpaid

parable/for example, with

2.98

1955

Co.,

New York, and

fund's stocks and is

2.97

1954

measure

2.91

1953

•

CI"CAG9l I1L

Lighting Company, came a partner in Samuel Abra- members of the New York-Stock

Airplane

Trust Company of

the value of each unit is

2.79

;

Island

holdings are credited to
participants in the form of addi¬
tional accumulation units.
Thus,

2.70

1950

Estab¬

in. 1879

fund's

2.66

1952——.

Long

age of the fund is less than three Boeing

....

competitive advantage of common Bond Club

VP1.«^

ntI

may well be a dynamic in-

...

future may bring

chip
^ trend towa ds a do
a '
These joint portion of the retirement fund
contributions assets being invested in common

primarily

effori to-accumulate

to jvhich they vestment policy;which wiH lie
/Everybody concerned— somewhere between the ultra-

aged members.

AT&T—A_Conservative

cooperative

pension funds old age savings reserves. The* end

sity, class of 1951. After duty in
-CREF
there has already been created a Korea, he was separated fronv the
The opposite end of the invest- substantial amount of capital ap- V S. Army Artillery as a.Fust
ment spectrum is that of pension preciaUon to cushion any future Lieutenant in January, 1955 and
funds aggressively invested almost market declines, and stiU main- became associated wittF. s.
tain a substantial earnings differ- Moseley &;Co.m April, 1955.
iu common stocks.
iji'hp niitutandTn** pvnmnip ie thp ential over bond fund performHe is a director of the Boys'
rollpffp Retirement Eauihes Fund
ance* The investment lesson of the Club of Boston; a member of the
Aggressive Investment Policy

as of March 31, 1958, stocks is illustrated by such di? subsistence pensions $47 miHion, with a market value
«rnuns
the American Air$55 million. This appreciation verse groups as the American A11of some 17% is substantial when Rnes Retirement Fund for Pilots,

„

the
,

fPr^b^ bai^^ubsi^n^p n>n<Inns aggregate,

J wS
for the

Co.

lished

3.80

■

economy

3.40

list

2.74

fjetj

3.70

unit

.••••.•

8.15

■

•

3.36

ZruTes^entiluv'a Sd workm^red^ c^s t0

2.70

recognize that it is essentially a retired workers or reduce costs.

2.20

1954——.

■

8 28

3.23

sbuoto than the: in- result

tied.

ar.e

of-return %

common stock

2.84

21.76

the long run,

-'durtriai

Going rate

8.51

3.34
;

Common

—.

2133
2.48

at t-end

BOSTON, Mass. — Frederick S.
MOseley, III, will be admitted, on
Jan.. 1 as a general par|uer„'in:
investment firm of F. S. Moseley^^

1957-

v,t*

values ajc statcd at markct price.
fYield on
of period., tfidds are computed on -the usual
'life-insurance formula^ and are for calendar 'years, I.e., shoulcl'beset
back three months,
value

Conclusion

''"v'*'■'

32.4

;

0.4

;

Income %

similar^ultr^conse^ativp°^v^stment

;

iua:

lack.

1952——.

1950—

end

—.

'-■-A

-* -1-.^. T

'J'

Other fhEed

Govts. %

Year-End

1947

—*

'•4$ "i; -

4.04

14.0

15.17

"Accumulation

feature and a^cash flow-

back which preferred .stocks

Structure and Earnings of
U.S.

•'" A

•Bate .%.t

4-45

11.46

118.45

market

.^!', -General/Electric. Company ':A%" .' A-A-a,

vestment

TABLE1 III'

en¬

_•

CBEFDividend

$10.00

.—„

1958-Sept. 30

was

Prematurity

common

•;

Percent"

Appreciation

*iu£TO BeCOme PaWlief in
me purcnase. .oonasaiso nave me

mWiwinn

-7.4

^0",ZTst^ks Su^ «

dollar averaging basis; (Table III.)
...

tirely of government bonds. There
is

.mu.

n.i,otioeA

the

diversification.

detailed

**•

*1958———

felt that the yield on orecareful consideration and is exe- ferred was not sufficiently above
,

partial solution to the

ammmt
of
set employers, empioyees and the fi- conservatism of, many trustees
,L.Jlr cmrittes in the nnrtfolin nancial institutions -^should get and insurance companies and the
p,if™red
have Sv left a»ay from the concept that a pen- policiesof^^somemvestoenttrusts.
™,t of the ord^am
howler
in ston
Plan <®n ; Provide -..ironclad -Such a .pokey wouldrgreatly en-

to go into equities was made after

ian

18.34

w«U

sequently,

A 1

"30.8

Isriow^r

1957„:---:

Averages—

a«l

19.84

vestment

secure

MM MA

1956——i.

requirements.
The in¬
managers of the fund
felt that if bond quality were to

89.04

•

1954——

actuarial

4.00

Aecumula tin n

1053.C——

72.81-

Fiscal ,Yei#r

•1955..

the

4.06

VAMM

JniiMar.31UjiiiValae* .'

•

secure a

rate to meet

Wi* ioAItl

higher yield and
as
a
hedge
against inflation, A higher yield,
of course, reduces the funding cost
of the plan. Prior to this time it

6.12

namely, to

program are,

■■

•

;>
:>
TABLE IV
Anaiysis of Larniiifis and Capital Gains of Grcf and Tlaa

accelerated

for

^ice 'Rec«^ V° • ptirchases on marketldeclines.
-J
v■;i^asons: stated:fbrc:the Jde-vi
:> r'4 A> —v■;;;/.; SS^ivWenrff^^AA'-',BS»hi1 U .if.* M»ody'S I^ Commp^ Stock Avcragesr
ClSrOn tO- folloW a Stbek -PUrchase/

.-■.-Year.■; -

TABLE H

Postwar.Yields and

December 22,1958

Co.

T. ELLIS:

IRA

Fifteen Economists

Agree on Long Run
But Not Short Rnn Prospects for Inflation

push

agree

temporarily cheeked the basic

and that the recession

nomics

remains

rious concern

George

prospects

run

ican

economy,

National In¬

tion, Harvard University.

School

the

-cess

■<'*

Director of Eco-

Expected to

Wage-Cost Push

Return

"Our main trouble

considerations, however,

from cost

Wilson

not contribute as strongly in
future as they have in the

pasl.
Continuing international uncer-

teinties,

the

adequate

ments in the

the

following

fear

are

ing, the panel sees the need for
renewed and more critical efforts

public

19591

inflation

greater reliance in the future
upon tax restraints than upon .the *
instruments
of
credit
control •

penditures
m

various

services.
The real

p'rob-

lem

fiscal

straint upon

lesistahce

act

excessive wage

individuals

inflation
Julea Backman

not

but whether

de-

deficit,

lncrease

'•

•

The

forum,

released

under

whose
the

views

are

title, "Unem-

Wages, and Inflation,"

ployment,

No. 62 of The Conference Board's

Studies
was

under

Murray
Board

the

Economics,

Chairmanship

Shields,

and

Shields

Business

trustee

the

partner in MacKay-

Associates,

the deficit will be $18

"It is argued that we might get
terrific slide toward debt fi¬

nancing
firms

and

the part of investing
toward

$20

part

the

will

continue,

budget

deficit

nomics,

School
and

Commerce,

Finance,

New

believe

that

will

■

mium

been

'in

•

inciease

we've

these

got

revival
bank

finane-

feed
are

Twenties

that

benefits

if individual investors shift

vi/si

non-

somewhat
i

fears

ramnant

today.

pa t

of
_

inflation
ilulouvll

™»,

many

stocks

against

are

inflation.

"If

more
.

It
we

have

inflationary

saving and investment
apparatus cannot supply enough
.'funds to finance both inflation
growth, which one

'give?'; If we look at
postwar period as a whole

the
.

our

economic

and

has

everybody

...

has been try¬

ing to get more growth out of the
country than we could afford in
terms of savings, v
The problem
of an excessive demand for capi?
.

tal relative tp. savings has

consistently.;.

It's

good

plagued

One

way

another, we have, increased :the
money supply to fill the gap!. . "
There

Riduu-d Allen Lester

are

"indications of

we.

:.>"
.

We do not have to infer

r»4

some-

■

.However, the life insurance
selling more group

•

companies are
■.

profits

pated

are

inflation

recovery

we're

one—than
...

insurance companies

cost

effect

has

upon

amount

if
of

begin-

types of

™

[the,rise

•
phenomenon, be- ALEXANDER SACHS:

getting

improve-

broadly

unreadjusted

cost

as we come illflation ls ~mPOunded by fiscal

well be that we do. have

fairly -compounded

good situation in the stock mar-

dollar

bullish

flight of the
securities

The

Our economy, even

internal basis,

....

been

operating

stocks than they would .framework of

otherwise be.'

fixed

lot of pe0Ple are more.has
on

taken

from

■*

...

very, much

the

are

just;11*11?

out of a recession- rt may very inHation. That pair, in turn, is

whether

and

insurance,:

in equity prices] might very well

"When all is said and done,
everybody is very doubtful S10n- a
any

term

insurance,

We do not really have this other types not involving a savfProfit] squeeze. There are a ings element. . . , Also, many life

were

quarters

J. O'Leary

discussion.

our

whether

nems*<nisusince n reces-.when
ket. Furthermore, bto dividends equities
kept
during-.the

that

James

point

cause

growth of inflation psychology

p^ducti^should
the

in-

whether in recent months

boatashave

inflation. and modA
wages

deveioped

how-in pretty much the same kind of

^1t£)~-traight:
Prof. A. G. Hart

diminished

pre¬

view

not

terest4 rates.5

ise
veconomyH that-

portant- thing

p r

inflation

savers.

psy-

inflation

from the

kind

e,nter

prospect

This is the im- -t

the

that

the

infla¬

aiv

ten

is n^ded. This;

been

With labor costs rising lessr

g"*„

Gainsbrugh, Chief Econ-

indicate

psychology.

ictontica/wLe totla^or'Afnod1' n"ar''the^rllative "cLro^the mCnt f" pi'0duCtivity
Prat e

Company.

Board.

has

that the increase in

experience

present tirtie do

For*examples
there has got-

is liehind

that

little develop-

re-

output per man-hour increas-'

ference

[it]

centives

rvl IT-

National * "
omist, National Industrial Con' * " ~

cboi0gy

about

worry

apparently*
prodigious in- great', many other factors—antici-

wage

Martin R.

than the 6% or 7% of the past few»

the

account

long-term

that

.v.

labor costs next year will be less

years.

large extent

WhaLh^fs Pretty ^uch worldwide.Other fiigh t from c contractual savings,
impressed me countries since the war have been anc* 1 do not expect tp see ene.

<*uced. ..."
"I

inS

ment there has

University.

du Pont de Nemours &

narf

vidual

represents the built-in stabilizers

3^^ become significantly

tionary

long-

impression

The

that,

longer have

the

insisting upon
equity pur^

the

ing more, it is probable that

Jules Backman, Professor of Eco¬

York

judgment

into

problem

the

being

with

with,

strengthening

at the

profits are be¬
ing squeezed

ALBERT G. HART:

Participants

were:

Accounts

have a

notion

deal

instances the

) seems to me -t
settlements, ; that they also .f

jibe

panic."*

some

growth. But it

inconsistent with the becost-puaii

much faster ;are

prices and costs that the following
year

lie fear

deficit of that size

gives rise to such

rising

not

$12 bil¬

lion

business

and

fkan output and most of the ad- ~s -q M,.g e z e d,-1;
vance will be in real terms. ' This .;T he fli g h tseems likely at" least, unless we «into equities
>run
something close to pub- doesn't quite

mands, and reexamination of the billion.' With the recovery which
quality of credit extended both is now taking place and
hich -n
firms.

•*.,
"Somewhat

"The idea that equities provide

encounter

good deal of the purchases

stocks

„

protection from inflation may be

have

exists

However,

not

may

how

agree
a

take

Hitchings

Geo.' P.

productivity catching up some lost situation in. ~
ground, total monetary demand ^ which: rprofits.;

re¬

domestic price rises,

inflation. .:7 V No firm evi¬

wage

'"With a persisting lag of pro- >
duction behind potentials and with .J1?*

social

principally relied

would

ave

Edwin B. George

ex-

in recent periods of infla¬
tionary stress.
"
Other proposals by some panel
participants include an increase
in
investment
and
production
abroad, greater exposure of American business to import competi-

costs.

that

)might have been created

next'

Surplus and retire the inflationary
^
Treasury with

and'

increased

upon.

which

the

P°sed to cut

tax

revenues

learn

perhaps in

hedge

far

which the nation

re-

biSlt-

credit

tain

runstandpoint.

boom it is sup-i-

reduced

require

may;

JAMES J. O'LEARY:

'has not been solved frbm

deficit?.

tatoctormof

likelihood

continuing

suit in

re-

process.of learning will entail cer¬

ex¬

It also, suggests tha,t
of a steady and

penditures.

and

modest ? wage

moment.

or.

that would

budget;

namely,

debt

increasingly
being held in stronger and more
knowledgeable hands.
Some
of the hewer extensions of, con¬

for

*nJ collect higher'revenues, even levy "us."
an expenditures tax if necessary f the :~any way to develop a workable 'RICHARD A. LESTER:

stahilitv

"Consumer

sumer

have eased wage pressures

them

arvimnlica

tions

considerable

beeil

dence

Needed

restrain unnecessary

has

have

arising from deficit spend¬

sures

not

I
oon^nmp?

conSumDtion

^dit

particularly in the aiito industry,

something else

been tremendously over-exagger-

ated.'

)3e

have

reduced

more ;

the

ahead

50% to

| problems that management will

profit margins.

cut

increase

highlights

l.ab.hties -had

ir ements

something

least

inflation

immediately

period

$315

forced by the
precession and

re¬

but

taxes,

"The

spending,

inflationary pres- j\

the

The
Company.

The

Greater Restraint
meet

r"'

government
trends,

inflationary

panelists believe.

had

Economist,

problems and costs of remarks by participants:
defense and anna-. \
.<
missile-age, and the JULES BACKMAN:

prospect of sustained
deficits, all can add
future

cess

reduc-

have

an ex¬

earlier

vears

billion,

against

Prof. M. P. McNair

bjllion 10

inge

man-hour
q u

—accelerate

Gamble

$475

tions in unit

fi-

assets

exceeded their

whole

some

u is

course

nancial

^liabilities

economy

is. not

now

government did. but

g o vernment

i-y

Wright,

Procter &

the

not going to do later,
sharp and threatening re¬
cession, the

ProfessorScience, McGili
of Economics
Political

University.

prices emanating

The pressures on

the

In this

McCord Wright, William

Dow
and

what

higher wage costs.

contribute

Uon

push but fw>mi-and -i r

Their

aggregate

the

t'nermore,

Chemical Company.

most David

annual increases,

automatic

r'To

times

bilities.

Thf>.initial risp>

EDWIN B. GEORGE:

panel expects the

participants hold, will continue

the

a wage

four

-in

flourishes.
cost-of-living escalation and

Both

7.5% !

were

their total lia-

excessive printing of paper moiieyi^ewfiftts wi|l
by the government.
; 3
~

nomics, Yale University.

;

—to return as recovery

end

something like
*

...

from

come

wage-cost Donald B. Woodward, Chairman
push—moderated for the presept - of the Finance Committee, Vick
The

and

the

1957

* ETCHINGS:

o+irtn l

O. Glenn Saxon, Professor of Eco-

the

capacity

consumers

differ-<inflationary situation unless

assets

means

cannot lengthen the debt in

of price

are

■■

Board reports.

ence

may

nancial

[gan0ping inflation ] fro(m the sit- ) The initial rise
we are jn now. ^ does not
in wage rates

further inflation,

for

a c

have

topics nave
Fi¬

uation

Association of America.

there

policy, it

most

other

tonics

been.

or', other

extent; that the 11958
unemployment "if-iwe- have , a aPto contract sets a pattern - for
situation of labor surplus and. at > tbe next -. three years, there is a
ihe same time we push up em-;reaI prospect that the wage-price
ployment costs, and therefore r spiral will be
prices."
But :"we don't get
stowed 'do Wn. i

Research, Life. Insurance

nomic

building

differed considershort-run prospects Alexander Sachs, Economic Adthe Confervjsor and industrial Consultant,

forum members

ably

•.

......

can

with

of Business Administra*

James J. O Leai y.

Shields

Murray

the

However,

:tpaheousIy

causes

Con¬

dustrial

with

ger-

the

particularly, that it must pinch
the durables sector of the econ-/
different omy through long-term rates. We

"The

that

T. Ellis

means

Retailing, Graduate

Professor of

demand-

have

Malcolm P. McNair, Lincoln Filene

ference Board.

petition

Professor

cently con¬
ducted by the

nearly

emment is going to do anything

Ira

increases

Princeton University.

Section,

agreed

forum re¬

Lector,

uses

pull inflation."; about monetary

Economics; Industrial Relations

guished econ¬
in

Graduate

Department,

•-

ment- bond issues could tap these

had

Eco¬

Richard

fifteen distin¬

omists

Chairman,

of long-term funds, then we
have our hands tied and naturally
cannot do anything. If the gov-

surplus
of liquid assets

.Ford Motor Company.

for the Amer¬

ob-'

vious

Hitchings,, Manager,
Economic Analysis Department,

the long-

had

School of Business,- Columbia /■
University. •r;t '' '

problem of sein

Hart,

credit]

to'ttie' discissions as;

mane

and, therefore,
G.

sumer

nomics, Dun & Brad,street, Inc.
Albert

"I cannot convince myself that
[the volume andquality of con¬

savings effectively, but to do so
wage-push in- / h would be necessary to exert
flation,..
At feal
pressure
at the long-term
other times,! ^f'd °f the interest rate scale. ! . .
especially in;H we-have a taboo on anything
1946
to
1957, that will put the Treasury in comacterize

Edwin B. George, Director of Eco¬

only temporarily the fundamental
forces behind inflationary trends,
and inflation
"

char-•

would

pro¬

unemployment and inflation < under the
chairmanship of< Mr. Shields of McKay-Shields Associates.
restrained

MALCOLM P. McNAIR:

wages,

The 1957-58 recession

One is what

....

pellents behind inflation, but disagree on short run prospects
for resumption of inflation. The forum explored the interrela¬
tionship of

demanded.

annual flow of savings, the greater
in, say, the last five, Part ef which goes, into creditoryears, which I; ship. Properly designed -govern-

prices.

have had

run

credit

should distinguish
'But long-term rates do affect de¬
two kinds of causes thatr^and
There is a substantial

bet ween

Conference Board round table
inflation does constitute a serious problem for the long

Top economists gathered at

short-term

'
.

three .types

within a.

triple inflation.
function

•

Volume

188

Number 5806

The Commercial and Financial Chronicle

(..r.

(2709)
interacting set of coordinates with
mutual reinforcement: the
greater

that's just
if

the cosh-push inflation, the greater
'the vulnerability jot the budget to

„

market

able

spending

keeps

vestment

plans

government securities.
The
constrictive import of this triadic

consumer

through."

and

the

derivatively,

investor

recoil
.

the

inflation needs to be qualified
by
the prospect that the course of

itself

Recovery

should

produce

elements of amelioration...

real

may

in¬

get

efficiency,

competition

ture

recovery1

l under

proceeding

inflation strains

carry-over

toes.

The most socially accept¬

able

and

newly injected inflationary
stresses.
The
carry-over
strains

revolve

economy

economic

and

financial

read-

amount

inventories

excess

improved efficiency in
management, the im¬

some

labor

and

inadequacies

Apart from

of deflation
■

the

around

justment.

and

portant sectors of economic

sectors

the

cover

unit

the

GL^NN

costs

SAXON:

fast get.

[Increased U. S. investment
abroad] has
been.gre a t i

1 by the/steady

7-abd^gerter-

iXV since
-

1948

1 United

WILSON
"We

still

are

oversaving
investment.

-vyearbeena
Or. O. Glenn Stxn

j: ;^.|mporfs^that ^
are
cbmpeuuye
of

^|sc therefdre, essential that

deficit

'in-/

p9ngfes^
^pm employment

pattern

discussing
au¬

than

that maxiis only one fac-

sharp during the
change-over period in September, and labor disputes pre-

improvement mainly

vented

housing and other
But

the

article

con-

noted

have

sound

Wilson Wright

bridge to the golden 196Q's
this- particular recovery?
Or

circumstances1 it

the

Federal

Gov-'

continue to be large. The demand
credit by tpoliticab authorities

building

are we

period?

that

Until

type of recQvery

the

gain

1927-1929

victo¬

some

the inflation front, we may
find that there is no firm founda¬

ries

tion

to-our

Our war
against inflation still remains to

be won."

Ail

indications

economy,

„

iMmromKor

look

•

for

marked

substantial

upturn

one tactor that may i)n—.

to increase thei*

consumers

rnnntha

purchases of major durables.

Th.mo.,

Total personal income rose steadthe Reserve Bank

was

ily during February

- September
year'and the slight decline 1h

the elindna,

SSS2SS
lion, or

some

tne

roadulocKs

October-mainly reflected reduced

which had held back recovery in
the durable goods sector. The total
output of hard goods did not ex-

owing to work stoppages in
automobile, fabricated metals,

ma-

But

aril

chinerv

class industries

in November

Zn itv
tion roughly

automobile

doubled on
ally adjusted basis,
y

the

chasing

power was

less marked in

the third ^uarter 111311 earlier this
year* Partly as a result' real dis^
p^abie
the largest

produc-

a season

three years.

increase in over

The recent strikes have also ob¬

trends, the ar¬
rising for
five successive months, non-farm
Correction
employment declined slightly in
the Financial Chronicle of seasonally adjusted terms in Octo¬
11th
it was reported that ber. While - the decline was
ac¬

vfSSEL
comes are

nne-iiKi,,

The

the most important test of the out-

...

scured employment

t tor ifv te stability of the nations

October.

that indus-,
trial production continued to
-irannck

are

ticle continued.

will continue to be large and the
debt incurred for
.

in evidence."

•

for

production of the 1959

mass

The Reserve Bank considers tho
reception of the new model card

token

apolitical pur¬
poses will/be monetized.
The
;In
problem isr:. V. how- to obtain and,
Dec.
f
ecoridiny: ,/It is i essential- that the protect income and capital.: Why William H. Hendrickson had
should not a person or firm avoid
/;<^ enibl6yh^nt act ;'be amended • to
opened offices in Hie Bank of the
include in its formula the rela- having/capital :taken away; or deSouthwest Building, Houston, to
^vry/tiyet"stability of;:consumer and preciated? »> .;. -Furthermore, if it engage in a securities business^
ii "Xprices,'If a choice must becomes clearly, apparent that our Mr. Hendrickson informs us that
X'J% be made between constantly ris- government* must be operated at a this is in error. He has become
deficit Indefinitely; the/advantages
X- ingand constantly declining
prices,'
associated with Bradco Oil & Gas
yongfess;-.should' declare for de- of moving capital out of the coun- Co.* and Bradco Associates as
-

struction.

of inflation and the

any to raise in this connection f>r,
is this: are\we really building a

these

victory,
largely recession induced."
-/ "Perhaps as sobering a note as

ernment -may be reduced but will

with the products
industries. ..."

our

the

concern

extended

bad.

is -to/:be*expected that

probably

rise

"Under

was

dorse the conclusion that

con-:'1'-'

The cut in auto output

unusually

model

propelling the recovery since its
beginning — the declining rate of
as
liquidation, increased
to inventory
government spending, and the ad-

diences for more than h decade. I
don't believe as yet we would en¬

expenditure, probably will
require debt monetization in order
to provide liquidity.
-.XX'.;.-

.'f&a$/year bjX

was

step-up in production in November, when approximately 515,000
cars were turned
out, suggests that
the industry is planning to mak®
up most of its lost production by
the end of the year.
'
"
"
'
'
-

growing

discussion

factors behind it with Forum

litical

'•

tant lines.

Short term,
the

have. been

'appears

way

condition that also
and employment
among suppliers in many impora

retarded output

models

the

be ^sur-

industry,

factors that have been

same

Bank
attributed
slowing of recovery

September and October to the
low level of activity in the auto

that, outside of the housing secthe reebyery since April. We have
tor, "an upsurge of private spendwon the battle against recession.
ing that would lead to a quick
•..''V .'But we've got a big war ahead
return to full
prosperity is not yet
of us.
We

t,
really should *

to the

vance

not

Gainsbrugh

signs pointing

it is gratifying to be able
to look back and see the extent of

quate It p*f fi¬
invest-*
e

M. R.

tne business

Reserve
of the

levels

prosperity

to acceleration of inflation in the

nance
m

the

Review of the Federal Reserve Bank of New York,
'The., Reserve
Bank
attributed

embrace the longer run

aborted by po- v,-

higher costs

sharp

owned

funds, there¬
to re, -have
been
inade¬

which the .re¬

States,/: there,

ber Monthly

relatively few

use

excess

privately

ap¬

those
n

The
much

characteristic of past
prosperity
periods," Recording to the Decern-

parent, -eve if
who'f0u

reduced

to full

n°t yet In evidence."

revival of business activity
November, but "the

"upsurge in private

quick return

unemploy-

and

was

to- -a

recovery still has a considerable
distance to go before
ment

again

there

attempting to

The

from

time

'-'"/"y

saving in

cession-; was

in the United
;■

system designed to prevent

'the

WRIGHT

sequence

;

j|' consequence

tax

States^

i//, tariffs.,.
'r"

Notes that

continued in

long term.

But

among

which
<

—reduction

tariffs

our

foreign .trade."

ally unilateral

.y..

costs and compete would

reduce

guished
the

prised:^.Q(,ur>
presentt yp &X
oi recovery, X

accentuated^ f.
"

try

economy
countries.

other

making

£9-^Wiv|Th^United Spates is
|mgH(bj;haye a high-cost
-relative

our

get

and

shorty

perhaps,'

run;,

is still considerable.

spending that would- lead

as1 \di stin--

screws

excess

production, costs of living, excess
capacity, and excess commitments
by government :
and by the
consuming public."
.

some

the pressure groups within the

lower

have remained uncorrected. These

of. putting

way -

degree
impact

and its
on

recovery than in preceding two
months* New York* Federal Reserve Bank finds recovery
gap

on-its-

probable fu¬

our

Despite faster November

have rfif-

fered

get

Economic Upswing's Pace

group, to a man concerned
about the problem of inflation. We

construc¬

tive kind that will keep us on

and

should

."Let qo one mistake the general
tone of our discussion; We are
all,

costs

'Federal Reserve Bank of New York Measures

(In Summary):

may

lower

MARTIN R. GAINSBRUGH
-

carried
.

the

up,

favor¬

are

and'

industry

from

imbalance,
greater

„

bubble' and,

cost-price relations

A. G. Edwards & Sons

After

To Admit Partners
ST.

LOUIS,

Mo. —A.

Ed¬

•

v
-S f

■

clinmg prices:
*
'

^ "

•»

•

•'y

...

try willVappCar to be 'larger."

y '
*

'; *;,Tbe Fed£raIGoveimment should

;/>2% l?udgeis"^ and
f.

offer : iong - term
bonds *u.paya ble in gold; currency

on,mi&t^jrit^'-which would enable
yy* ii^andahgd^he entire Federal debt
'./-i* * ^hpuld; if. be. desirable to do
yX at 'reasonable ; interest rates.

B. WOODWARD:
•7"\'SZ.& - '
•"?**".-•

Congress eould

"The most
the

stdck C

- -

>?.;

'
.

DAVID

WRIGHT

all

suaded

that
mar¬

"The Federal Reserve Board has

lost

cause

with

the

ket

control

the

situation

economy

liquidity.

be¬

ment

increased

director of the firm.

interests in its*
Exploration.Pro-;
*'•*-:

r ■

This

announcement

sell

Mr.

Ullman

executive-

is under

circumstances to be construed

offer

solicitation of an offer to buy any of these securities.

The offering is

•

made only by the Prospectus.

December 24,1953

154,000 Shares

Filmways, Inc.

The New York Stock Exchange

firm

Stanley A. Aldrich re¬
partnership in Adams

Common Stock

from

Peck

December

31.

Walter

opti-i Fitzgerald, Jr.
will withdraw
too great.'' This flight from the
Donald B. Woodward
mistic and a from partnership in. Blunt, Ellis &
dollar would not be too bad a
sounder basis Simmons, Dec. 31. Thomas A. Mc¬
thing if it would result in cutting for strength.- *
"Pressures for Kay retires from partnership to
down
the
amount
of
expenditures to
replace Orvis Brothers & Co. Dec. 31. Jack
surplus higher
A. Ziebarth, member of the New
liquidity, reduce bank reserves, and improve arms are likely to
York Stock Exchange, will with¬
^nd squeeze, the supersaturated mount in the next few years. But
draw from partnership in Reed,
economy.-.
."
arms can at best only hold space
Lear & Co., Dec. 31.
Baron J.
; "It .is quite possible that we and win time for the free world Gordon, member of the New York
Stock Exchange, resigned as Vicecould
have
a
collapse
of
the to make economic and cultural
President and Secretary of Propp
§tock or the bond market and gams.
The realization of such & Co., Inc., Dec. 23.
not have a depression.
Em¬ gains—in large scale—is the only

25<* Far Value

•

Price $4,75 Per Share

ployment .is
trial

set

investment

and

purchases.

sumer

lapse

will
a

shake

:that

people

con¬

general

market col¬

confidence

way

the

the free world

aggressive

strength
achieve

can

and

win

over

growing

of the Communists.
these

gains should

mean

and

large and rising expenditures by

real

all the free nations, including the

can

hap¬

will" say,

'oh,

discontinuance

investment plans.
pen

But it

states

miry

be obtained from the undersigned only

which, the undersigned may lawfully offer the securities.

indus¬

real

The

assumption is that

force

real

Copies of the prospectus

United

States,

provement."

for

mutual

im¬

With Goodbody

& Co.

Jay E. Haynes has joined Good-

S. D. Fuller & Co.

body & Co., 115 Broadway, New
York

City, members of the New

York

Stock

Exchange and other

leading exchanges,

as a

registered

representative and member of the
investment sales department.

26
WUUehall 3-0066

and Paul Ullman, Jr. to partner-?

as a
Associates to

has announced the following

changes:

sea-

fected by work stoppages.

Weekly Firm Changes

tires

inflation.

about

Exchanges,

New York Stock Exchange

There

only

ship.

;
■

that employ-

appears

sonally in the industries not af-

Mr. Hendrickson,

considerations

old-fashioned
money

2338

Jan. 1 will admit James F.; Ford-

in addition to
of Underwood,'

prima¬

rily moved by

saturated

terms, 'the quantity of

participating

industries, it

organized

was

Bradco

1959 Oil and Gas

Board.

Street, members of the New York'

not

per¬

the stock

•

♦.

for

time;

...

vehicle

the

Sons, 409 North Eighth

and Midwest Stock

g row t

gold standard. ..."
i.

Sales,. Inc.,:
sell

an 'gram.-•

over

goods, mainly in the strike-affected

being an officer
This
Neuhaus & Co., was formerly for
K is 15
years with Texas Gulf Produc¬
:7ikrelyvto be'
ing Company as Financial Vicesupplemented President and Director. •
by inflation.
6f

full-fledged

Chairman

long period

then take the final-

step and return to

exptrfence

important-ecorioniic^growth
;

*•"

market^/'. f^-is%iat the

is going to

economy

•

important strength of

so—
.

DONAipD

;;i.o^r^te4:iqih''./^geherally; balanced
.

wards

counted tor entirely by job losses
in factories turning out durable

Broadway, Neiv York 4, N. Y.
'

TWX NY 1-4777

Financial Chronicle

The Commercial and

Thursday, December 25, 1958

(2710)

and the New

pany

profits

Rochelle Trust

•

Bankers

and

ETC.
REVISED' ■■y1S
CAPITALIZATIONS r
NEW OFFICERS,

now
part of NBW. In his new
Department's: Personal post, at the bank's main hanking
Bank, of
Brooklyn,Brooklyn, Services Group.- »>
- ->/voffice, Mr. Bisset will be assisted
N. Y., announced that two officers
Mr. Moore also made known by Frank Burke, Assistant - Vicer
*•;. : it
>
7 /■'*■ •1
have been promoted' to
higher the appointment of Robert J. Per- President.
■

other

em¬

ployees

have

made

been

"">>>

officers.

"Karl

Dime staff in,

Vice

Karl

Stad

Anzalone

Trust

following

1945

Schneck

The Dime
Chief Appraiser
at

and

since

Mills, President
Bank for Savings in the

The

New

states

keeper in 1927, Mr. Marchant ad¬
vanced to Assistant Treasurer in
1931 and Treasurer in 1945.
He
1952.

Treasurer in

Corcoran,

and

Vice-President

named

wus

Adolph J. Langmack, Assistant
Secretary of North Side Savings
Bank, New York, died Dec. 15.
He

.ft

sjs

bank

the

for

appointment as Assistant to the
Secretary of the Treasury. He has

Dec. 23,

County

been with the bank since 1934.

Worcester, Mass.,
it was announced

Trust Company,

Robert D.

tjt

announced plans to open
branches in the next

I.,;

burn.

Mr. Brace

bank's

joined the Worcester
Company in 1954

three

January

in 1955 and has been in the
Proof, Check Master and Machine
Records Departments and is now
a Methods Analyst and Supervisor
of the Machine Records Depart¬

<"■

...

: \

will retire
Chairman of the

National

Illinois

Kansas

at the
to in¬
capital from the present
$5,000,000 to $10,000,000 in order
to provide for a 100% stock divi¬
dend.

National

City

has

now

out¬

standing 200,000 shares of $25 par

after the 100% divi¬
dend, there'will be outstanding
400,000 shares.
R. Crosby Kemper,
Chairman
and President, said the same divi¬
dend
rate
will
prevail on the
additionally
issued
stock.
The;
bank pays 80 cents a year, or a;
total of $160,000.
The dividend
requirement on the new capital
will be $320,000 a year/ :
value stock;

•

•:

••

- ft •'

National BaiiiTUnd
Company of Louisville, Ky„

Liberty
Trust

its

increased

capital

common

stock from $3,500,000 to

$3,750,000
by the sale of new stock, effective
Dec. 5.
(Number of shares out¬
standing — 150,000 shares, par
value $25.)
ft

■

* .'■

Fla.,

The

Directors

holders
in the

Bank

National

the

bank

increase

capital stock of the bank of

$1,750,000
declaration

ments, presently in Methods.

par

20%

followed

sales

the

10,000 additional shares of stock,
tive

■

Washburn

new

$25 at $35 per share, effec¬
on appropriate action by the

shareholders

and

granted permission by*
of the Comptroller of

bank.
is President and T. V.
is Cashier.
The bank

the Currency to open a new
J. D. Camp

Varnedoe
has

certificate

issued by the ^Comp¬
troller of the Currency.
approval

of $500,000

capital

and a

surplus of $250,000.
ft

•;

Organization of a new national

divi¬

stock

was

$1,250,000

from

Worcester: County
Trust Company in 1926 and has
served
in many of its depart¬

dend

Ridge

office

the

Chi¬
111., has proposed to share¬

cago,

the

years.

Board

Uptown

Mr. Gabrielson entered the em¬

National Bank of
Lauderdale, Fort Lauderdale,

Coral
Fort

......

Mr*

Company,

crease

President.

the staff of
Trust Com¬

after

pany

of the
England

National

City

Trust

Mo., will be asked
annual
meeting Jan. 13

will be
succeeded by David M. Kennedy,
111.,

the Worcester County

ment.

Bank;

Bank & Trust Company, Chicago,

joined ' the
Worcester
County Trust Co, -in
year.
Meadow Brook now has 31
1955 and has been a teller, in the
Harry P. Barrand, Jr.,/Craig S. offices.
Proof and Bookkeeping Depart-,
Bartlett and John B. Henneman
ft
«
*
to
Senior
Vice-President.'
All
ments, and is presently a credit
RalphT. Tyner, Jr.,
Board
were formerly Vice-Presidents.
analyst;.: Previous to entering the
.-Chairman and Harold J. Marshall, Worcester County Trust Company
i Mr. Barrand is in charge of The
p r e s i den t, National Bank of;
Mr. Washburn had: been associ¬
Hanover a foreign : division.
Mr. Westchester, White Plains, N. Y.,
ated with, the National. Shawmut
Bartlett heads the bank s? invest- have announced
temporary' reBank of Boston and the Windsor
ment department.. Mr, Henneman
assignments ifor four officers of
County National Bank," Windsor,
is in charge of the personnel de- the
bank, effective Dec. 22. - The Hanover.»Bank, New York,
announced the; p r o motion of

;

Continental

departments of the bank,
most recently as a credit analyst.

joined

head

New

and

Walter J. Cummings

cial

Corey

regional

group.

and has been in various commer¬

Mr.

New. York

and

division

out-of-town

serves

Brace,

Richard

;

City,

1954, as an Assistant VicePresident, is associated with the

Trust

County

ploy

r!t

•.

were

M.-' Corey,-

Roger

Terhune, who joined PNB

Mr.

Bank

by President Edward L. Clifford.
Promoted to the rank of Assistant

.Meadow Brook National Bank
of
Nassau
County,
Hempstead,

Texas.
,

with

and

had been

57 years old and

years.

Arkansas,

Oklahoma

Mexico,

was

associated

District

Worcester

the

pointed Robert F. Marchant, Exe¬
cutive Vice-President.
Mr. Marchant is Treasurer of the bank
and will retain that title.

official assistant.,

the

Gabrielson and Stewart P. Wash-

Southwestern

he was elected a
Vice-President, resigned his post
for one year in 1956 to accept an

meeting of the Board of Di¬

rectors

Division

Investment

PNB's

since 1942, when

officers were elected

Treasurer

Daniel
Haskins, from official assistant to
assistant: cashier; R. O. Watson to
The

who has been head

Mr. Kneass,

Philadelphia National Bank,
Pa. The elections

Maiden,

Company,

new

B. Terhune has
Vice-President of

bank's board of directors.

Mass.

Five

been

Jan. 1, were announced
by Frederic A. Potts, President,
following the last meeting of the

Director of

•

National
ft

Stockholders

has

effective

the election

City of New York, announced that
the Board
of Trustees > has ap¬

from assistant cashier to Assistant

covers

was

Dennis
Trust

Maiden

held

Alfred

Mr.

Coming to the bank as a book¬

Vic e-P resident;

Announced

Colin H.

Duluth, Minn.

Vice-President

Senior

elected

been
The

s:>

ft.

American

First

$10 Philadelphia,

-'ft

G.
Barnum,
Jr.,. has
been elected Vice-President of the

Kneass

Stephen

and

112,500

value

par

value.

large

involve

will

duties

Peter

are

Vice-President.

since

the

...

part all the aspects of the Trust
Company's corporate relation¬
ships.

elected

from

stock

consisting

$1,125,000
shares

capital

the

increase

of senior management

member

promoted three
officers who are serving in the
Southwestern District.
>•- ;
j

They

:Js

Executive

his

has

York

Buf¬

Bank,

each, to $1,406,250 consisting of
140,625 shares of the same par

The First National City Bank of
New

falo, N. Y., received approval

J. Sinclair Arm¬
strong
will join United
States
Trust Company of New York, as

1952.

Industrial

Buffalo

•

George

shares, par value $25.)
George

On Jan. 2, Mr.

1954; Robert C. Frese an em¬
ployee of the bank since 1940
and Supervisor of the Mortgage
Application Department since
1951; George W. Schieck in the
Mortgage. Servicing ' Department
since 1942 and Supervisor of that
department since

promoted

were

joined Bankers
Company in
1953.
Alter

to the rank of Assistant Mortgage

William

outstanding—25,000

of shares

ber

opment of branch office business
in January, 1958. He was named
officer of the bank in 1956.

of The Dime since 1921
Assistant Secretary since
1949, was promoted to Assistant
Vice-President. He will continue
in charge of the Mortgage Serv¬
icing Department.
/
Frank D. Miller employed in
1936 and Chief Supervisor in the
Tabulating
Department . since
1956, has been made an Assistant
Comptroller.

Appraiser

■

shares, par value $20.)

serving for several years in the
company's Metropolitan Banking
Division as an account officer, Mr.
Person was assigned to the devel¬

Officer:

v-'-

Person

Mr.

em¬

Assistant

1951.

Vice-President

been

has

1957,

August,

ployee

The

named

and

1947

promoted to Vice-President. Mr.
Stad has charge of the
bank's
methods, systems and procedures.

and

;'..v>rv

v.y-

and

Carmine

bilities.

Department; Walter F. Taubc,.
years of service on Dec. 19.
He foi-merly Assistant Cashier,.; to ) Winona National and; Savings
Bank, Winona, Minn., increased
was
associate#;/with the I>obl»s Assistant Vice-President, continu¬
its- common
capital stock from
Ferry V Bank * before
its; merger ing in charge of ; the Roxbury
$200,000 to $400,000 by - a stock
with
County Trust three years Office.
"K
d i v i d e ll d,
effective Dec. >12.;
J if Cs'"' ' 1
ago.; •
; ■ •
'
*•".
r *f
,'l V
(Number of shares outstanding —
,* •/
-^
/ ;•
*'
'J_r / The common capital stock of
4,000 shares, par value $100.) / >
ncl

Presi-vv-

Vice-President, Person-,

Assistant

Assistant-

dent

He will combine
his; duties as editor along .with
his new public.relations responSi-?

Comp¬
in

1954,

Ferry office of; County Tfqst Co.,
White Plains, N. Y.i completed 25

1949,
Deputy
Comptroller
an

which made its debut in Novem-*

ber of this year.

Northup,*
Cashier, - to /

yisioiV; ;Robert
H.
foi'inerly '•-Assistant-

He recently was appointed edi|qr of /The Michigan Bank Ne^vs'J

troller

Treasurer

Haug,' A s si s tan t
in charge of the Dobbs
J.

1929,
becom¬
ing an Assist-:
ant

President^ Commercial Loan Di~;
Richard

has

Man¬

Administration;"
Assistant Treas¬
urer, International Banking De¬
partment; Joseph E. Martin, As-'
sistantTreasurer,
Accounts
Receivable and Peter H. Rothen-'
First
National
Bank
of
.J ByVthe sale of new stock, the The
berger,. Assistant Treasurer, .'In¬ common
capital .stock
of
the Somerset County, Bound Brook,
stallment Loan.
: 4 > - v v
Scarsdale N a t i o n a 1 Bank and N. J„ was increased from $762,500
/1 Mi\ Byam joined Bankers Trust Trust Company, Scarsdale, • N. Y.,
to $1,000,000 by the sale of new
Company in 1933. ', He- was ap¬ was increased from $400,000 to
stock, effective Dec. 10. (Number
pointed an officer of the bank in $500,000, effective Dec. 8. (Num¬ of shares outstanding — 40,000
c e

D.": Jay,

Robert

■>

The

joined

Of f-i

Branch

who

Stad

the, Branch \ Office Deyelopmei 11
Department and named Hugh F.
Coyle,> Assistant Trust , Officer,
Personal, Trust Division; Richard
H., Deatiy,: Assistant, Treasurer,

b sid

time

Branch

Manager and
;
:

ager, Collection
other capacities.

to; Vicc-

X; \Bond l>epartm ent;
Francis 3; Haydpck,-. formerly As-,
sistant
Vice-President, to ViceP

Vice-President in

Assistant

son as

Vice-President,

sistant

that

Assistant

John W. Ahearn, formerly As¬

during

and

years

been

;

Bank for the past five

Michigan

Dec. 17 were the

with The

Mr; Juliano has been

, ■

following promotions:

Trust

rank and four

Announced

;

keep paee with the rapidly
expanding growth of the bank,
Mr. Hay said.
-

Lawrence

Peirson, Jr., as a director,

of The Dime Savings

Trustees

election of A.

the

was

in the
created

was

the meeting

Also announced at

';;

;
one

new

bank's structure and

000,000.

Assistant Vice-President.
He was formerly manager of the
bank's office at 542 Main Street
in
New
Rochelle.
Mr.
Bisset
started his career with the former
New
Rochelle
Trust -Company,
Bisset,

•

—

$7,600,000 to $10,-

increased from

White

CONSOLIDATIONS
NEW BRANCHES

of NBW's Peoples Office in
Plains will be David S.

ager

Mich., it is announced by John C.

further

plus to $7,000,000., As a result,
capital
and
surplus would be

Succeeding Mr. Holmes as man¬

News About Banks

surplus

amount sufficient to increase sur-... Hay, President.
The post is a

Company for over 30 years.

Bank, to serve Northwest Dallas
and the surrounding area, was an¬

Holt*'
of the pro¬

by F. M.

Monday

nounced

founder and President

posed institution, r
': : I
\ ;;
"The Bank, to be chartered as
the Northwest National Bauk of

„

partmentr*:

Advanced from Assistant VicePresWeirt.

|> yt.

Vice-Presidents Edwin S. Linps
and. Ralph

both

Holmes,

to-Vice-President were vrhite Plains, " will assist; Martin

Franki /W.

Kaestner^.. corporate

trust;' Herman S.- Streller, operationg^ aniLcFred ^ G. O^ Weynet,
personal trust.v"•/■ n
^ <
.

Ryan,

i>;

Senior

and;. chief
t>ank."

Vice-President

Loan

Officer of ..the
will also; con-

Mr., Lines

tinue his

present duties as White

/Appointed Assistant Vice-Presi- Plains Regional Loan Officer;*; | i
wqre -Tliomas. F.
Culten,
With the bank since July, 1952,
John E. Hardy, and Wesley Sim¬ Mr.
Lines Awas
formerly: Vicemons, personal trust;; William xF. President in Charge of/the Instal?
pralte„42nd StreetofficC ;,-Edvvard ment Loan V Department of h the
A. Murphy;.1 41st 1 Street * office; Peoples National Bank and Trust
Daniel B. Phelan, foreign divi¬ Company prior to its consolidasion; L. Abbett Post, Jr., city di- tion into NBW, as it is now con....
viBion; and Eldon.R. Wallingford, stituted. x In 1955 .'he transferred

dents

out-of-town division.
*

William- H.

-«

Moore, Chairman of

the Board of Bankers Trust Chin-

York,, announced on
Dee. 19 the election of Guy R.
Byam as ..Vice-President in the
iwey^.

New

the

and

Commercial Loan

was

Regional

subsequently

Loan

Section

appointed

Officer

for

the

White Plains area,

Bank

and

•

and

■

Gardner, Assistant

Savings Bank,

Chicago, 111.,'

will retire at the end of the year;

Trust

Com-

/will

Texas,

Dallas,

serve

the;

of the city."
Plans are to open the hew Bank
Secretary, and Milne C. Storms,'
for business early - in March of
Assistant Cashier of Harris Trust
L.

northwestern section
:

1959*
,

-•

The

:;:

Bank

•

:/• •/:r;

will

~::: y

:■

have

common,

under the provisions of the bank's? capital stock of. $200,000, surplus,
of $200,000;
.;
'
\
pension plan.
'
f Vice-President and Cashier will
Mr.; Gardner, Twho
has been
be ;Tonv. J;.. Hardin, formerly an.
with the bank for almost 32 years,
Assistant Vice-President of Ilill-;
retires as offiCei' in charge of the:
•drest 'State Bahk._»',
" >...>•
trust and, real estate division. He
i The directors *; to -serve. with
was elected Pro. Secretary in 1944,"
F. M. Holt, President, are H. Leslie
and Assistant Secretary in 1951.'
Hill, Wright Titus; Allen Clarkp
Mr. Storms has been with the
James L. Huffines, Jack Lively,)
Harris Bank for almost 38 years.:
and Dr. Frank J. Altick.
.

;

regular meeting held Dec./

the Board of Directors • of the:

ftockland-Atlas. National Bank of

Boston^' Mass.,
mend

the

voted ; to : recom¬

bank's

•

shareholders:

at the annuaL

meeting on: Jan. 20,
an increase in capital through the:
sale of 40,000 additional shares
He
of capital stock.^
:
:
'

If approved, by the

shareholders;
and the Comptroller of the Cur¬
rency, the: increase o£ capital will
result in a total capitalization of

■

was

elected Assistant Cashier

1944.

•;'

V■

•

'ft

♦

> Preliminary; approval

Bank's charter was issued by

the
the*

Comptroller
of " the > Currency;
.stock dividend, the com¬
Washington, D. C., on^ Dec. "9.; : : :
mon:
capital stock of The First
An
organizational -meeting of
National Bank; of Iron Mountain,
*

.By

300,000 shares of stock of $10 par
valUe.-

Currently,

the

bank

has

Mich., was increased from $100,000 to $200,000,. effective Dec. 11.
.

capital of $2,600,000 and surplus
of $5,000,000.
From the proceeds (Number of shares outstanding ■—
of the sale of additional shares, 10,000 shares, par value $20.)
*
s
ft
"
;
$400,000 would be added to capi¬
tal and the remainder to surplus..
J. Gregory Juliano has been
Simultaneously,
the
Board
in¬ named public relations director of
The
tends to transfer from undivided
Michigan ~ Bank,*
Detroit,
.

Ralph G. Holmes has been connected with NBW, also Peoples
National

•

;

Clare

•

„

■

„

shareholders was held on

Monday,^
meet-;

immediately followed by a

ing of Directors.

Mr. Holt,

President of the pro¬

for three and
President/of the

posed Bank, served
a

half

years as

First National Bank of

Arlington;

However, earlier this year,

he dis-

Volume

188

Number 5806

The Commercial and Financial Chronicle

(2711)

posed of his stock in tha t Bank to

for the founding of
Northwest National B a n k.
prepare

He'

Arlington - fro m * the ^
Citizens Bank, Batesville,v Ark*/
Which he organized ,4n 1953. - His ;
first banking connection was witlr
came

the f y

By BERNARD M. BARUCH*
V

the

Merchants

and*

Planters Bank, Warren:, Ark.

Mr.

■*

Hardin, who will

indifference,,
Barncli, oh the occa¬
^receiving; the B'nai B'rith President's Medal, declares
"deep down in our hearts we know how to cope with infTation":

;'>'*

the

proposed Bank rds Vice-President
and

and achieve

an adequate national defense.
Mr." Baruch ex
impatience with the "nothing can be done philosophy"
and calls for self-discipline, and, universal sacrifice to end the:
cancer
eating away our economic and financial health, and "

presses

>r«

Cashier, joined - the staff of
,

the Hillcrest. State Batik in -1947;—*
was
elected an A s s i s tan t * ;

Cashier:

;

■

' *

It seems to me that we Ameri-

•

»-.r,v4

Indifference Is-No Defense

have grown-indifferent .'tp

v ;>;>

*"'x"""J;

security and spiritnal strength.
\
v
y ¥ •

our

Assistant

•"

•

1956,
and
Vice-rPresident in: 1958;
.

statesman

sion of

;

serve

fervent anti-inflation appeal to cast "aside

apathyandselfishness," elder

the Clark Comity Bank of Gurdoih.
Arkr He-also served:
six year? as^ j t
President

Malms "Christmas Slop"

-t

V.-.

The

^The common capital stock* pfr

psychologists

might

-sug-

-thjatthe;public attitude of

erly

Dec.

8. ■)

standing

so fnany
peo¬
ple Who have

i'ohi-

(Number 'Of-

^;«156 fOOO shares^
^l^OO:

)>ar
>

•

The Board of Directors Of Bail it

tion.

%■

to Vice-Presidents..

•

Peterson,

announcing th

;ti

ei ns

are

Perhaps it is because

himself

concern

to overcome the major challenges

in trates a, point.;;
appointments /Inflation is a !;

with

the

confronting

VIsland

benlard

primarily 'cancer which v'
the superb i s
eat i n g :

Hawaii

have

one that even our young
people
believe that nothing can1 be done

infla-

said that Mr. Evans will

visionof '

seeking the "
rather than the right

easy answer

President,

e s e

per¬

grown accustomed to

n^ illus-1;'

gratifjHng-

wants.^The~5[ii6dBut to what
they escaping?>
call it escapism.

'■

Evans, Jr.* and. Robert T., Sasaki-' "^toward

oneself to

sonal needs add

The public's
t tit p d e

easy,- in the face of such formidable tasks, to play the ostrich and

/devote

if ;

^0r: ind i g n

Hawaii,'Honolulu; Hawaii; aiw

nounced rat theii\; meeting ori Dec.
19 ■ the
promotion:1 of James-

:®V.G.r> ^bad ; It, .
v;the capacify j;)

■.<

Barucb

us.

;

•

I grow

impatient with this "no¬
thing can. be", done philosophy."
Back in/the days of the War In¬

economic and financial health; It is undermining our dustries Board of World ; War I,
security and our spiritual strength vve had a sign in our office which
as well. It is responsible for much
read: "They say it can't be
DUNELLEN, N. J.—The "Wall - As Mr. Steven sou turned to wave
of the burden of taxation we bear; done, but here it is." I have al- street .Express" of'the Reading a final
farewell, the five men unof the swollen prices we pay; of ways believed that what human ^aiiroad r^e an unscheduled furled
» greeting of their own to
the debt with which our govern- ?lolly commits, human ingenuity ,stop near jjere Dec.
M, «o that the pas«ftBm»rs.-It.was a four-foot
mei}t is saddled; of the devalued can overcome.
commuting Wall Street business- O^ng^MpidVeacking, "Merry Christaway at our

Branches. ; Mr.
Evans came to
Bank of Hawaii in 1947. He joined
the staff of American Trust Com-

in
San
Francisco,
Calif.,
working in the Real Estate Loan
Department.

pany

Mr.

Evans

appointed

was

As-

sistant Cashier of Bank of Hawaii
in

February

named

1953,

was
Vice-President

Assistant

Br^ch^

of Hawaii Island
tember of

suffers3mos^fraomTtSarfdeca0n lias"?

and

afford

it.

Allow

this

malady

run unchecked and it will impov-

to Sep-

ensh

1956.

people and destroy

na-

like sin, inflation is
denounced regularly.
But unfor¬
tunately, like sin, it is tolerated,
encouraged and indeed enjoyed
by many.

the

supervision

the

bank's

Oahu Branches. Mr. Sasaki
Bank of Hawaii in 1948

Accountant.

ager
and

was

Market

remained

came

Cost

named Man¬

Branch

there until

1952

There

August

course,

inflation

of 1954, when he was named Act¬

they
they

In May, 1957 he was named
Assistant Vice-President in

Roth

Branch

February

1955.

Charge of Oahu Branches.

have
can

not

Points

that
really very bad
live with it, and
who

say

think

that

that beset

National

Or take another

attorney who helped develop
which are now a

programs

Defense

example.

The

rifice.

Have

manent part

new

grown

not

apathetic that

ourselves

rouse

terrible

tragedy

very

are

a power-

dedicated

opponent'.

Yet

the American public seems almost

torpid in its concern for our security. The quarrels .within the
government over questions of deBut

to be

nowhere does there

seem

determination to place nasecurity over the demands
of special interest groups.
There
are
too
many
special
interest
groups in America today and not
enough
groups ' interested
in
a

tional

associated

.the New York law firm of

Brady,

Caffrey

been announced.

'. During

&
-

tions have died

;

the early

days of the
Exchange Com¬
mission, Mr. MacDuffie was SEC's
Securities

and

chief

eral

when he was with the fed¬
Sank of New York

Reserve

handling guaranteed loans to de¬
fense

contractors.

recently

Mr. MacDuffie aided in the estab¬

lishment of the nation-wide

untary

Vol¬

end

must

world

tensions.

But

must

reduce

fective

and

our

strength.- Any

enter

must

ef¬

enforceable.

Perhaps
the present meetings at Geneva
will provide a first step forward—
but only a first step.

years

pri¬
be necessary.
every turn

as may

agreement

interpretative attorney in
Wall Street, resigning to practice
law privately. He again returned
to public service during the war
:

regards

atomic

and

the

•

control

hydrogen bombs, the

from

swarmed

but

be-

^naf.°rians come to the
elusion about us.

same con-

America cannot claim perfection. But this country, often hated
abroad and too frequently derided at home, offers the best systern of government ever devised

by the minds and hands of men. I,
who am moving into four score
ten appeal to my fellow
countrymen to remember that despite all the challenges she faces,
years and

beloved

our

.•

America

will

over-

them.

stepped

Jersey Central

address

B'rith

meeting,

Mr. Baruch
of

five overall-clad

were
,

Mr.

Stevenson

New

York

City.

briskly

—

and

wished

all

—

five

very Merry Christmas from
the passengers of the Wall Street.

men a

Then, he slipped
denominations
hand

turned

tbe train

into

Strachan,

Stewart

Duncan and James Ackerman, all

of Princeton.

Mr.' Bryant's

and dashed back to

and. Donald

sack which

brim-full of bills of various

was

Morgan, of Wyncote,
Pa., was "Chairman" of .the event,
assisted by Mr. Stevenson;Richard
Y. Fuller, Yardley, Pa.; Walter
Bartlett, Morrisville, Pa.; Joseph
—
Hibbard and Allen Horton, Philadelphia; Robert Moore, Wyncote,
Pa.; Newbold Smith, Haverford,
pa.; R. c. Rudisill, Glenside, Pa.

to their foreman, James Bryant,
of Plainfield, N. J., shook his hand

James

men.

walked

suit, "What a happy feeling
gives us all. It helps make
Christmas complete."
: j

are

Many of the riders

Wall Street bankers, brokers

and investment counselors,

'J'
This

announcement is
to

NEW

buy

any

neither

offer to sell nor a solicitation of

of these securities. The offering is made
Offering Circular.

December 22,

ISSUE

Offer

the

only by

: ■ >

1958

300,000 Shares

PERFORMER BOAT CORPORATION
Common Stock

members

the

New

York

and

Marion

Winsor Mirick to

limited

partnership.
On Dec.

31, Herbert V. B. Galla-

become

limited

will

withdraw

from

partner.

Winsor,
limited

Governors'

our

road, on which the Reading oper¬
into New York.
Waiting on
the other side of the right-of-way

(Par Value 25^

Philadelphia-Baltimore Stock Ex¬
changes, on Jan. 1 will admit
Joseph M. Chudomelka and Sam¬
uel M. Kennedy to general part¬
nership, and Curtin Winsor and

Jr.
by

Board

over

Rail¬

per

share)

" '

PHILADELPHIA, Pa.—Yarnall,
Biddle & Co., 1528 Walnut Street,

The Estate of James D.

annual

the

115th

To Admit Partners

partner in the firm,

Back on the train everybody was
happy. Said Mr. Stevenson as fel¬
low passengers helped him out of

peered out

Yarnall, Biddle & Co.

will

B'nai

Stevenson

everything if. each of us
aside indifference, apathy

every nation is forbidden to have

*From

Mr.

grew soft and their capacity for
self-discipline waned. Will future vigorously,

ger, a general

the

eyes

ates

external

world will never be free of the
threat of nuclear destruction until

Home

Mortgage
Credit
Program sponsored by the private
mortgage lending institutions.
- -

much from in¬

the character of her citizens

not, in our anxiety for
peace, be lured into a meaningless
agreement which would require

it has

give-first priority

long

300

and selfishness.

must

course

seek

Gordon,

Keller,
^

with

It all took less than two minutes.

More than

this

defense and maintain that

ority
become

us?

his

casts

our

MacDuffie

whiskers.

some

them

since

line

come

aflnv

Sacel956 w^e^

from every window of the train

special in the history of civilization.

t0 the g^p of worker3 who have

the southbound tracks of the main

America which is something very

»r

The third annual Christmas trib¬
ute of the Wall Street passengers

Jn time of peril, apathy is the unforgiveable sin, the irredeemable
x

cause

us.

has

before

overwhelms

car

invegmeto

will

dining

& Co.,
in bright red
complete with

New York, clad
Santa Claus suit,

decay

and

New York.

the

inm ot Hemphill, Noyes

strength
Have

Rome fell not because the

our

fense have done much to confuse

ing,

self-sac-

ternal

ful

of finance and bank-

Allen

lost the

of character to do this?

barbarians

^ p^holo^

•I-,

We know

universal

means

blows.

threatens

engaged in a great struggle—political, military, economic

per¬

manu-

g press manu

hopped Walker Stevenson, Jr., of
Princeton N J of the

that it

MacDuffie, Wall Street

fXXX

nress

to the national interest.

survival in the age of the missile.

E. Allen

m.intine

IdCUirers>'
Down from

the world and

Gordon, Brady, Caffrey

it requires self-discipline and the
subordination of personal interest

dark shadow of the atom shrouds

E.A.«laelhiffieWith

With
that,
Conductor
Andy
Maag, of: (106 S; 7th St) North
Wales, Pa., gave-his engineer the
high sign. And, after a toot of the
whistle, the train was away to

York

History and tradition tell us
that great nations and civiliza¬

by which
its consequences.

wrong.
Out

New

melUng furnace of RJ Hoe

'wosit^a

metal

We know that

us.

Philadelphia

error.

gimmick

escape

are

who

some

and that you can
there are others

ing Manager of Kaimuki Branch.
He
was
appointed Manager of
Kaimuki

are

The

all the other dilem-

overcome

mas

primarily will be concerned with

kn^to assurecope ^^ttorh
how hereto our security how
to

tion.
Mr. Peterson said the Mr. Sasaki

factory workers.

hearts

our

mas.TTattStreeter!"

mento five «ive a Christmas prescould
ent

"Down DeeP" We Know
Down deep in

partnership in the firm the
date.

Price $1 per share
A

copy of the Offering Circular may be obtained from the under¬
signed only in states in which'the undersigned is qualified «s a
dealer in securities and in which the Offering Circular may be
legally distributed.

R. A. HOLM AN & CO.
1

HAnover
same

T: R

New York 5,

54 Wall Street

2-4890

N. Y.

The Commercial and Financial Chronicle

Thursday, December 25, 1956

(2712)

Navy's swing

the

type of motivation.

THE MARKET... AND YOU

f.-

By WALLACE STREETE

old

the

,/
.-"v

■

days

■

By CARLISLE BARGE RON

shipbuilding, the industry /to¬

reactionary near-craze for electronic isday faces a period of stability
week but with volume sues despite its rather solid that' some sources estimate

this

contracting after the indus- position in the field. Nor did
trial average had forged to it benefit too much from other
within touching distance of fads for automation shares, or
the 580 level where resistance its participation in sub-assem-

will

for at least

run

And. it should, but

decade.

hasn't, add

much to4he investment status

stories

that the

now

tention.

industrials have broken

again

through

Daystrom, which is probterritory ably best known publicly as a

Corp. is another case

seen

American Telephone had over, the company has been out the first quarter of its
quieted down rather abruptly active in one still-secret pro- fiscal year and is understood
after it had single-handedly ject which has entailed a mil- to have turned in a profit well
Carried the average through lion-dollar expenditure for above what it was a year ago.
the November peak that was what is believed to be a„kQm- I,ts $3
payment on the shares
the last hurdle surmounted: pletely .automated -chemical offers a
generous yield above
,

surprise announcement process. Its'earnings picture 5% and is expected to be well
that it had, at last, abandoned for the current fiscal year is covered
by earnings. The
thr classic $9 dividend main- expected to be hampered by
company's present rate has
tained for more than a third write-offs of obsolete inven- been maintained since 1950

The

a
century
jolted Wall tory which would pave
Street mostly because it came way for a good earnings
at a time when no attention bound in the future. /

being paid to the company's meetings sfnee the
was

the

mark.

J ,
next dividend session nor°utlook for Stee s
tnally would be in April. The
Steels have been relatively
company chose ;*o split the stable, except for a few of the
Stock and up the'payment by specialty companies such as
10% with a $3.30 basis for Carpenter which had occa.

after

quarter

century
\

...

„

new

the

ward

Satisfactory

dividend

unbroken

its

and

re- record overall is heading to¬

A Selective Attraction

Robertshaw-Fulton Control,
with

yield of more than
also a better-thanaverage return for a company
3-for-l sional but mild trouble. But that is making good progress

412 %,

split—equal to $9.90 on the the outlook for Carpenter is in automatic controls. It is
present shares. Hailing this far from bleak and with its second rotily to - Minneapolisconcession
to
the
changed recently doubled mgot capac- Honeywell in the control
value of the dollar these days ity there are some estimates field. Minneapolis, however,
in 1922, around of earnings soaring to
policy was from $8 to $13, depending on
adopted, carried the average how good a year the .steel
some 10 points above the old business generally will have
high 'before the new resist- next year. This makes its $2
ance developed.
i - current dividend look small.
/
'
*
*
'
Like the o t h e r.s, Carpenter
New Cloud Over Oils
had a sharp decline in earm
Oils were about as laggard ings for. the last fiscal year,
as any other group what with reporting wa
Moss -nf $2.62
new
threats
coming froni agaipst earnings of $8 ' the
Venezuela where determined previous year. The company's
efforts to cut into the profits 'Control of costs was reflected
by the administration threw in black ink operations in the
a
new
cloud over their al- September quarter when-conready hazy fortunes. There solidated operations were at
what

over

When

was

the

;

also

was

irregularity in the
where

aircrafts

contract

switchmg

prompted

some

rapid layoffs, notably in the
of

Case

Chance

Vought, and

in the rails which

are

Uertain to show poor

jor

earnings

the full year despite the

recent

tiess.

pickup in their/~busi-

Strength
definitely

profound. Newport News

-Shipbuilding,

continued; to

selective,

are

second

many issues
.

little popularity in the recent chant

marine

work

and

t he

Carlisle

head lines.

being

Uarreron

being

haunting the Capital
day. The newly afrived
rookie .Congressman
can
call a
press conference and sound off on

ever

every

from

now

largely made himself

the

that

"liberal"
their

And

bent

along

they

influence

caucus

rules/

the Congress hears

conven¬

ing there is even doubt that Rule
22, the filibuster rule, will be ma^
terially changed. Support is with¬
drawing -from sources that the
"liberals" least suspected.
The prospects are at this time

•/
tre¬

they intend to
Senator is bound by

decision.-

figure in

hear stories of

now we

just
were.

but

go,

international affairs

by that device.
So

that

elected

decide which way

be a past master in the art of
holding ,press conferences when
nobody
else
was
in
town.
He

and

They meet and discuss issues and;

The late Senator Borah used to

national

Senators

continue

be:' Senate does not have

won't

roll call.

means

wilt

they had gotten positions of lead¬
ership.
Unlike
the * House, the

able to get his name in the papers

except on

Which

will be just about what it was

the whole scale of human affairs.
month

the

not

may

corre¬

spondents

now.

Dirksen

highly individualistic body

—that

hundred

it is

of the Policy Committee.
/
- i
This does not mean—the Senate

items

are

minority leaderand Senator Styles
Bridges will remain as' Chairman

liberals,

There

Senate Re¬

the

mendous

fight . developing in the
Republican party as the "liberal"

that what will be done is that the
rule will be changed only to pro¬
vide that a filibuster can be ended

"Eisenhower

threaten

supporters"
challenge/ the
old

leadership. Senator Dirksen, we are told, will- be opposed
for the post of minority leader.;.
The "liberal" insurgents will de¬
mand more important committee
assignments. We are told that this
is .necessary
if the. Republicans
fo

are

their

present

party

elections have

that
as

the

true

present

fooling

weaken it

with the rule several
In their efforts to
they tightened it up

instead. The

be to

country.. Past
proved, so it is said,

Republicans cannot .win

move

this time would

untighten it.

ttodbody fi Co. Will f

They*

party.

ago.

years

the

conservative

picture

vote' of two-thirds of those?
instead of two-thirds of
the membership. This is the way V
it used to be before reformers got
by

guard

present a
more
"liberal".
front Jn; keeping
with modern

must

Admit Two Partners

times.

their

offer

pet -in

recent
yield is well
2% at recent prices to

intention

.overthrow Ihe body to partnership, and on'Dec.

stark contrast. Ttobert- present leadership

shaw also had

bers from

dip in busi¬
Recession along
a

their:

seat mem-; 31 Joseph Hartzmark. Mr. GoodSen¬ body will acquire a membership

ana

own

group.

Case of Nr J. is active in
jn the New York Stock Exchange.
movement, ; as * is
Senator Mr. Hartzmark will continue 4p
with the bulk of American in¬ George D. Aiken of Vermont, and make his
headquarters in
the
Senator Cooper
oL Kentucky. firm's Cleveland office, National
dustry, but during 'this year
They claim, all "told, to have *17 City. East^ixth Building, pf which
brought out more newvor im1 votes which is- half of what the

the

ness

ator

the

he is manager.

Republicans in the Senate will be.
•Thus, on the basis of their claims,
they : have only to pick up. one
seat

and

party

jority

they have

ma¬

the
^"liberals,!' the-ADA and otheu*
leftists are rooting for them.
They claim that they :ar£ the
caucus....

-article
-time

views

All

not

coincide

"Chronicle:'
as

necessarily
with

They

those .of
are

this
any

-presented

With Bateman, Eichler
(Special to The Financial Chronicle)

Kidder, Peabody &X:o./17 Wall,

sup¬

are
not in the * leadership;
they-never got to see him. ^As'-a

result

of: Eisenhower's

exposure

•to. lean

continued

the conservatives; it
Eisenhower is coming

is claimed,

•.

strange

have

the

doesn!t

anything

has

.which

and
.

Mr.

Eisen¬

want

with

thht

issue

'»•"

Mabon &;Co. to
Admit New Partner

Mabon

Co., 115 Broadway,
New York City, members of "the
New
York
Stock
Exchange, on
Jan.

more"

ner

2
to

will

admit John

Gess-

partnership. Mr. Gessner is

Manager

of the

utility bond de¬

partment.

them.
would

off the Senate fight,

is .very

his -part.

talk

seem

indicated

keep hands

thing is the

"liberals"

hower

partnership.

and more their way,

The
these

He
-

Will Admit Jos. Vostal
••

they

who.continuously

ones

the -statements

those of the author only.]

Kidder, PeabodyA Co.

port Elsenhower but inasmuch as

tive.

expressed

" • -

Street, -New York City, members %
of the New York Stock-Exchange/:,
on Jan. 1-will admit Joseph Vostal k

only

unanimously..
[The

•

notion that the entire market with the prospects that unless ^the
situation is changed, Eisenhower's
has
raced
to
high ground -last two
years will be conserva¬

good

Senator

insurgents

make

and

over

Small

they will be politely

over

publican leadership will go right /

Congress,

that

under

largest

neglected despite regarded as; a., prime shipoutlooks.-Day- building favorite) is in the
fetrom,-Tor instance, showed forefront -of both the merHhedr

the

been

has

be in the field (after Bethlehem

leaving Steel which is not commonly

tion

bowled

leadership

and

even make a
fight. And, even T
they elect to fight/ the expecta¬

•markets and its

"only sporadic at best,
was
a ^ow Ievel lately even
though the implications of the
switch to atomic propulsion

turn

Goodbody & Co.j'115 Broadway,
/ About 10 Republicans have been; New York->City, members of the
meeting and getting alii sorts of New York Stock Exchange vn
publicity in,these dull /days .about Dec. 30 will admit James B. Good*

proved products than it had in
half a dozen previous years
and the result was a sharp in¬
crease in earnings in the Sep¬
tember quarter with a-better
earnings trend continuing into
the
new
year.
Despite the
only a third of capacity and company's progress the stock
Pave fhe way for a sharP rer has done virtually nothing in
bound as the recovery >con- the last iive years, neither ap¬
|jnues '
•' • •
j
proaching the 1954 flow of >18
'
*
*
nor last year's high of $36i If
The interest in shipbuilding is a distinct refutation of any

mostly issues,

"lib-"

not

efforts

the

Dana

in history, furniture maker, has exof a firm where the name
probable earn- panded its electronic activities
scarcely indicates its nature
ings, multipled by the higher to where a third of its sales is which is original equipment
price-times-earnings ratios fr0m industrial instruments for passenger cars and trucks
seen in earlier periods of mar- and
nearly as much from de- and which, despite the poor
ket confidence, are the most fense work, leaving only 34*/
record- of the auto industry
accepted method currently for from consumer goods and this last year, was able to uphold
determining goals.
well larded with hi-fi and its profits impressively. The
*
*
*
electronic equipment. Morecompany
has only rounded
before

never

Estimates

fights,
to

advertised

political observers in Washington
expect the movement to amount
.to a thing. Their movement maj)
peter out even before the session
opens, in which event they will

from

exact science

^widely

Congress arriving next month but erals" which they; thiilk is abso- *
with little news in the meantime, lutely necessary to .success in their
you can hear some of the darndest particular states. But none of the

Washington.

of the

been

Amidst the holiday season,* with

shipbuilding companies.'
Little, things.^
was rather generally ex- blies
for business machines, Newport's yield, running well -become
mag-.;
pected.
••
i : *
In part this might be credited past 4%,.: is thoroughly re¬ •nified out of
*
*
*
to a name
that gives little
all propor¬
spectable against the dwin¬
tions. There-;
-The business
of selecting surface indication of its acdling return on the issues that are stories of,"
target areas is far from being tivities. /-v:///v;//V ; ::
have had more investor 2 at- political party
an

•.

Washington
Aheadofthe

when

foreign competition virtually

turned

~(:ri ■■

From

ended all interest in American
Stocks

*'■

newer

%
1-

From

good judgment on

With MacLaughlin Sees.
(Special to Thz Financial Chronicle)

PASADENA,

,Calif.—Joseph'J.

Kudzia has become affiliated with

■

Leo G. MacLauglin

Securities.CQh
these-"liberal" Republi¬
presumably served. ..a 65 .South Euclid Avenue. He was
Bateman, Eichler & Co., 453 South purpose .in that they have got formerly
with Dempsey-Tegeler
their
names
in
the - papers
the •Spring -Street. T'
and & Co.
LOS.'ANGELES, Calif.

Cochrane

now

—

affiliated

Acton
with

Well,

cans

have

"■

(2713)

'W?
much of-the international balances

•

—»i

hitherto held in the IJnited States;
their way to London,

or-to-

;

By PAUL EINZIG

considering the probability of sterling convertibility and
possibility of French franc's undervaluation, in 1959, Dr.
Einag hypothesizes their impact upon the American dollar.

mentator

opines the changed

considerable

the

reserve,

ratios if they

currency

have
'

com¬

the

ing the repeated and emphatic of¬

As is well

that
■i

effect

^continue

~p:e r s i s t
i iV
".London
and
oh continental

IjyfhVo ign
change
ketsi

ex¬

m a r-

The dis-

appearance

t h

\rr

preminm

repatriation though some holders
would, if they could, switch into
gold. Should, however, the franc

preciable

and

itself.

repeat

will

be;

remembered that in 1928 the Gov-"
of

ernment

Poincare

stabilize the franc

decided

at such

plans
if

ready
it

should

dividend

meet

stock

arise.

were

domestic

low

forward

dollars for the

listed

Affect Free World's

Strength

ord

such

■

speaks

for

itself

New

about

York,- weak trend of sterling

not called for

the domestic economic situa¬
tion. This would ho a matter for
regret, because itwould hamper

market

sentiments. The continued outflow
of gold from the United States
and
the

tion

anticipation of renewed infla¬
during 1959, are mainly re¬

sponsible for this pessimism Con¬
sidering the large size of the
American gold reserve it is of
ridiculous

course

conceivable
which

imagine

any

circumstances

the

United

Stales

could

find itself forced to devalue. After

all,
to

even

if all foreign funds

withdrawn

the

form

£old there would be still
considerable

were

very

left.

reserve

probable that the Brit¬
ish Government will make use of
the

prevailing sentiments in the
foreign exchange markets some

able to avoid

de
a

Gaulle

will

sible

the

suspension

of; the

and
French
As

Repetition

1928,

achieved

once

of 1928?

France

stability.
accompanied by

has

now

domestic

litical

Should

po¬

this

under-valua-

whole free

world

Bank

de¬

United

would

States.

The

persistent

-result

ord

adverse

the dollar and

pressure on

that

longer

the

Government

considers

await

jjo

necessary

considerable

strengthen¬
ing of sterling before embarking
on:
convertibility.' •
•<;u•
;

; :

- •

•.

•

;

•

Until recently

garded

in order

sterling

weak

was

currency,

to be .able

vertibility

would

risk

re¬

and
con¬

becii

have

necessary
to double
and
more
than double the present, British

gold

reserve.

During
the last
however, confi¬
dence in sterling increased con¬
siderably—not because of any in¬
month

two,

herent improvement in the British

but largely because of
development of a minor wave

economy
the
of

distrust

the

dollar.

months ago the immediate
of restoring the

few

effect

convertibility of

sterling

would

have

been

the

large-scale transfer of funds from
London to

New York

by holders
of sterling anxious to acquire dol¬
lars while the going was good.
Today such transfers would be
ftegligible. For this reason con¬

vertibility will not entail at the
fnoment

any

mediate risk.

will be devalued

unduly

grave

im¬

The game can

now

be played from strength, not from
weakness.
Indeed, it even seems

though not

scale

would affect the dollar to

worthy extent.
;

•

may

conceivably

through

any

look

equal

francs. In

way

ly
amount
change.

the

dollar

develop,

moves

not

British

monetary; policy to u t
through
monetary developments in France.

old

mere¬

that

this

inconceivable,
operation

would be combined with some de¬

gree

degree
franc

with

price

levels

funds from the United States. The
outflow
come

gold

would

thus

be¬

further accentuated.

the

conditions;

United

Not

Force

brated its centennial in 1953; and
its
dividend continuity
showing

reason

cient
States

dimensions
to

devalue

assume

the

come

the

dollar" in

order to arrest the trend.

other

suffi¬

force

year

later.

have

Bjmk

York

five

the

City banks with

(or longer) records,
proportion in the banks of

city.

can use

The

cen¬

high
large

Boston has 4;

back to 1848, although Man¬

Philadelphia 4.

have

banks

nothing to be
concerning their
longevity record of dividends.

ashamed' about

War/days; ;tho bank having
for

of Lincoln's

one

FIG Banks Place Bete.

.Indeed,

this

The Federal Intermediate-Credit

Banks

Dec.

offer

18,

a- new

of issue of
approximately $137,000,the business was carried /on for
000 of 3.45% 9-month- debentures
some
dime before -the
banking
maturing Oct: 1, 1959? Priced at
part of the ^eplure was ascendant,
par, the debentures were- offered
Chemical's reeord, unbroken, dates
through John T. Knox* fiscal agent
from Io27f-Us;iricorporation from
for the Banks, and a nationwide
1323,; Corh' Exchange Barik had
selling group of securities dealers.pai(T/.wi'th'qut; a/ break since 1853;
Proceeds from the financing will
it:wa§^#g^4:Svi:th^..Ghemical sev¬ be used to refund $138,000,000 of
eral years ago.
2% debentures maturing Jan. 5,
Empire Trust is one of New 1959.
York's "younger" banks. Organ¬
'

Davis

announced

by Earl T. Parrish,
Maxwell, Chairman of
Nominating Committee. The

part

the

Annual
Jan.

Election

will

be held

ized

Nominations

were

Chairman

George

follows:

Board:

Davis, Davis,

1902, it has

ord

the

payments

Skaggs

& Co..

1864

from

Calvin E. Duncan &

until

was

unbroken Alpin & Davis.

merged

City Bank

few

with
years

NATIONAL

OVERSEAS
BANK

AND

LIMITED

Almalgamating National Bank of India Ltd,
and Grindlays Bank Ltd,

„■

RICHMOND
ert S; Burns is

HILL, N. Y.—Rob¬
engaging in a se-

business

87-60 113th Street.

from

office

Oh the formerly with A. M. Kidder & Co.,
hand, the dollar would be¬ Sutro Bros, & Co. and Blyth &
a much softer currency and
Co., Inc.

the

same

part¬

Top-Grade

Conservative Investment

THE BANK OF
NEW YORK-

BISHOPSGATE, LONDON, E.CJ
:

Bulletin

13 ST. JAMES'S SQUARE, S.W.1
54 PARLIAMENT STREET, S.W.1

Bankers

the Government In

ADEN, tOMALFLAND PROTBCTORATB,
NORTHERN AND KWTHOM UODMUL

Request

'
\/

Exehncs

Members American Stock BxehMfS
129 BROADWAY. NEW

Branches (n:

Members New York Stock

ADEN, KENTA,

*K>1A, PAKISTAN, CEYLON, BURMA, KKNYA,
TANGANYIKA. ZANZIBAR, UGANDA,

Available

Laird, Bisseli & Meads

UGANDA, ZANZIBAR A SQM AL1LAND. PROTBCTOKAJB

Mr; Burns Was

Cullen

Head Office:
26

R, S. Burns .Opens

curities"

Freston

date will retire from limited

nership in the firm.

1955.

ago,

Berl, Sutro & Co.; George J. Otto,
Irving Lundborg & Co.; Scott U.
Stewart, Jr., Shuman, Agnew &
Co.;
and • Ronald
E.
Kaehler,
*

unbroken
record of payments from 1905.
Talcott, McAlpin &
First National City Bank was
Davis New Firm Name
organized in 1812, during the war
The firm name of Talcott, Potter
with
Great Britain, and it has
paid dividends since a year after¬ & Co., 41 East 42nd Street, New
ward. A component, the old First York City, members of the New
National
Bank
dates
from
the York Stock Exchange, on Jan. 2nd
Civil War days, 1863, and its rec¬ will be changed to Talcott, Mc¬

21, 1959.

For

Parrish &

London Branches

slight¬
for expecting that any

thus

but

named

Devaluation
Even so, there is not the

cele¬

Co.

Trust

States

George

President.

Dollar

uninterrupted divi¬
1894, giving

its

dates from

Would

different

tury

GRINDLAYS

their

incorpo¬

was

under

65-year span.

the record kept

holders

withdraw

Trust

1889

dend record started in

made up a year

National

York

title, and

and

Co.; Harry F.
France and abroad, wholesale re¬
Flachs, Lawson, Levy, Williams &
patriation of French funds would
Stern; Merl McHenry, J. Barth &
follow. The resulting weak trend
Co.
in the dollar and large-scale losses
The
following are carry-over
of gold might induce other foreign
members of the Board: Warren II.
too

ical's origin as a.manufacturer of

devaluation. Should the
For Members of the Board of
of devaluation leave the Governors: Ernest E.
Blum, Brush,
in comparison
Slocumb & Co.; Calvin E. Duncan,
relative

the two institutions.

rated

two later

ehemicals/

undervalued
the

New

We are: all familiar, with Chem¬

It is by no means

however,

York

because

economic

cabinet members. "

dollar

arithmetical

its

ordered

was

New

would

hundred

that would

such outflow would
on

the

of
dividend

been

the

franc

est
•

major attack
*

that
note¬

could

tween

year.

Civil

means

pound in the face. Pos¬
sibly this end would be achieved
through simply making one new

Guaranty's as a result' of the
recently announced merger be¬

1830's

goes

were

-parities of the franc m or¬
eiijfftmate two notights/
French, people have grown thor¬
oughly tired having; to reckon in
big figures and there is a strong
demand for the adoption of the
that

York

the

connection. Of coiuse, from

hattan had been organized in 1799.
Chase dates its existence from the

Exchange

1941.

this time out its record will really

Bank of Manhattan's record which

der-to

and

same

this

New

Chairman

highly damaging to General de
Gaulle's
prestige, and it would
weaken his popularity. What will
probably happen will be.a change

franc

p^diUhmtennibtedlysince

rec¬

cific

Stock

was

possible that a return to converti¬
bility would attract funds to Lon¬

don,

New

Chase Manhattan

the /franc

To do

■

for 174
that First Na¬

State

intact.

in the

*•';

;

Why Sterling Can Be Freed ./

•

the

centuation of the outflow of gold/no

organized
a break

San Francisco Division of the Pa¬

Coast

continuous record from 1999."
P.;l\i(bvga.n;&; Cp.7 lnc. has

the omission

of the Board of Governors of the

ac¬

Fortunately, it is by
certain, - however, that

York,

the

Bank

Receives Nominations
the

New

dating from the
depression of

Coast Exch. Division
Nominations for

Central Trust's

National, dates from 1851.

early

capital
repatriated mainly from

would be

the

and

under

tional Bank of Boston has

serious

time

stood

It happens

years.

omit

twenties

1873

charter, giving a
record of about 88 years. A; longer
span could be argued, as Hanover

time: to

in 1784, has paid without
in its record since 1785,

pending
on
American
financial
strenght and on the expansion of
American production for its sur¬
vival against Communist economic
aggression.

This time French

since

New York State

carried

are

devaluation, there would be once
more repatriations of French
capi¬
tal on an infinitely larger scale
than the late

Hanover
Bank's
starting date
depends on which of three com¬
ponents (omitting smaller: mer¬
gers) went into the consolidation,
Central Trust Co., Union- Trust
Co., and Hanover National Bank.
Operations have been conducted

its

statistics

would find that, dividend

tion of the franc through another

ling

during 1959 for making ster¬
fully convertible for non¬
residents:
It is definitely under¬

whose

Starting with Bankers Trust, we
find that it
has
paid uninter¬
ruptedly since the year of its or¬
ganization, in 1903.

It would be to his interests

of the

two

merged in the late 1920's.

Howeydr, prior to; that date the
organization bad been a partner-^
for corporations: of any sort;-this ship,' as/a private, bank, and there
is ho public record of its affairs
is ap outstanding record,
;• /; s *0

the interests of the. United States

gold standard in 1931.

Some

were

These

of 'the group /would
average out at. over 75 years; and

to avoid it but it would also be to

for

envied.

origin.

continuity

devaluation of the

franc.

this department from

time

cline of the Bank of England gold
reserve.
This was largely respon¬

'thirties.

<:.< It seems

General

that

the

those

and a de¬

as;

or;'55£!$p://'/'
V.^Krti^cfdrefs!

when

•

used

/report' to dis¬

measures were

that

But

;

it might Conceivably
even

National Bank of Commerce

V- Irving Tirusl? was; organized in
top prize must neces-r 1851; but its unbroken record of
sarily go to the banks (all traded
payments//goes-back only to 1907,
in the Over-the-Counter Market);
and
particularly,/ those .in New
Trust Co..dates
York ; City. i If we? were
"/to./list

ities/of the United States to think
in terms of resisting the outflow.

measures

the

companies have done
unusually*well in this respect, too,
for example a number of insur¬
ance organizations.
•
•''

however, for the monetary author¬

inflationary

industrial

the safety margin of the gold re¬
would make it necessary,

become necessary to

issue

maintain uninterrupted dividend
payments for anything like a cen¬
tury has certainly hung up, a rec¬

serve

To that end

records

the

neighborhood
is held by the
Pennsylvania Railroad. Now, any
company that has been able to

Dr. Paul Einris

;

Organized in 1864, the record of
Guaranty Trust on dividends goes
back only to 1892, unbroken.
It
could go further back if the; older

of about 110
years,

eco¬

level that it became grossly un¬
dervalued.
This, together ' with
>._f i r s t t i m e the confidence inspired by:; the business expansion at a time wheri
-"since the War;' achievement of political stability, such .expansion would be justified
on
the ground ? of the /domestic
id spite of the induced a great
many Frenchmen
/ lower interest
to repatriate their funds/, maihlv economic, situation? / ■
/ • ' "
:
For this reason it is to be hoped
'
rates prevail - from London. The result was a'
on

Week—Bank Stocks

exchange or
in/ the Ovei -the-Counter
Market. As the writer recalls, the
longest unbroken
record
of
a

position of allow¬

the

continuity

listed

traded

A further substantial decline in

ap¬

extent,; the experience
subsequent, years

of '1928

might

This

almost unlimited amounts of gold,"

of dollars and dollar securities are

once

By ARTHUR B. WALLACE

the

nomic situation. They could safely
disregard the international factor
because they could afford to lose

known, French holdings

be devalued

that

assume

ing their monetary policy to be
guided almost entirely by con¬

possibility of very substantial. At the moment
devaluation, rumors to there is no indication of any large

dollar

their

situation

siderations

ficial denials of the
a

in the enviable

inlationary measures when our economy should expand would
jeopardize Free World's cold war strength.
LONDON, Eng.—Notwithstand-

devaluation,

Hitherto, the United States

occur,

fostering

franc

Bank arid Insurance Stocks

banking

pursuit of dis-

our

/ ;

monetary authorities of Washing-,
Periodically,
the
"Chronicle
ton are fully aware of the
possi¬ the NYSE and the American Stock
bility of such developments and Exchange issue data giving the

would soften and place the dollar on the defensive, and
compel
the U. S. A. to consider the international scene in

monetary policies. Fears, for example, that

Assuming

reasonable
■

depletion of all foreign funds from U. S. A. in form

of gold still would leave

//*'

;

•

;

the dollar would be decidedly on
the defensive in 1959.
It seems

After

Aware that

continental

come

center.

"* *-

...'

might find

.i-+

■

YORK ft, N. Y.

Telephone: BArelaj 7-SM9
fieZi Teletype—NY

X-1R4S-4#

(L. A. Oibbs. Manager ^ Trading DepL!

Spaeimliata in Bank Simeka

...

Steel/Production Outlook

other consumers.
-

Relations, Institute of Scrap Iron & Steel,
Washington, D. C.

Continued

oils

because

Mills; the erudite Chairman of the
House Ways & Means^ Committee,

1959 than in

1958.

below

which

and

Production in the year

mirkfng113^1"

ing

even

try is encouraged by the fact that
automobile firms have come into

1949.

clos¬

now

the market in the

startling when
1949 when we take

compared to

into account the fact that the steel-

past two weeks
demand for

for

Demand

tons

the excise

: >

re w Ln i
,rorsen*

The

for

reason

the

fnr nm/innto

nntnmMkintf

ltem^ used in automating,

also

nas

;inrn

other'

improved

increased.

OieeimaKerS

Two

questions

big

;:'reformf

t.ered

nf owl1

.Vf

remain for r;

capacity

try, plus the first sales figures on
the

1959

models, mean

the

that

million

tons

fourth quarter have been the best

close.

But there are
number of factors which could
a

are

®/SSJia
Sf ? falser deficit by the United

sharp upturn in consumer spendHnumimv
rAvnnoet
ing. However, this forecast is not
incs

True?

on
un

The

down

v» r\r

these idciors.
mese factors

1957-58

are

Shipments from
fur in the

ranges of some types, and laundry

1959,

been

improving since July.
keeping with this, the level
«

tn
j

these

ronsum-

consum

1S higher and has been an important leader in the over-all rise

When

II.

new

and

equipment. One factor, in. the
thinking, however, is the attitude
of labor. It's entirely possible in

bringing The makers of laundry equipment,
for example, expect a 6% rise in
Inventory liquidation came to an 1959 over 1958, making next year
*■—
u
0
y
qnd in the current quarter, and it the third best sales year in the
is expected that a gradual process,
history of their industry. A factor
of inventory building will begin in these
expectations, of course, is
in the early part of next yeas, the
increase in housing* starts
Actually, some has already started, forecast for 1959, as well as 1mDuring periods el business expan- proved consumer income.
slon such as forecast for 1959, stqel ' We
expect general construction
,

^ers stocks. Tf move fflllnw thp*r to be better in 1959, bringing with
fhPir stnpkR
'
flieir generally thpv to build up
If
,x

_•

it improved demand for steel from

are

We don't expect railroads

to be-

♦An

address

Press,
Conmer

ington,

by Mr. Story before the

Outlook

categories

By the process of cheapening
Under this practice, combined
and centralizing power with our wealth and natural re-

Federal

comparable

nations have stooped to it.

ever

edge.

Free

Enterprise

deficit

June, we
moved from estimates of virtually

Herein

lies

indicated before.

billion

concern,

Our free enter¬

basis

the

1939

dropped

value

Stockpile
Atomic

is in im¬ We must start Federal fiscal rewould be covery immediately. Such recovthe highest national debt in the ery must start with balancing the
budget, reducing the debt, and
history of the world.
During the past session of Con- stopping inflation.
gress we were forced to raise the
This must be our goal. Responstatutory limit on the national sibility
for
achieving
it
lies
debt twice within seven months, equally upon the President, the
than $300 billion
mediate prospect This
more

Economic

was

unprecedented. But we Congress and the people of the
Some people are United States — individually and

contending the recent elec-

now

tion

mandate for

was a

even

more'

dangerous Federal spending activ¬
ity:
U
more
programs
for
non¬
essential

spending should be
adopted by the new Congress to
be convened next month, our fis¬
cal

situation

fasfer next

will deteriorate

are

enacted

term
year

they

will

long-

nature with huge multi-

commitments for the future,

programs

The President originates budget

billion, from S19.1 billion to '
$33.4 billion. <
;<
;

reason

Total,

White

discussed

now.

the

President

House

situation

Labor

Understand

1958

and

foreign

for

aid..

programs.
I
Since 1954 expenditures outside
of defense* atomic energy and for¬

$19:1 billion
This

billion.

a year
an

to $33.4

increase

develop, or the
we might expect

quences

continue
The

present course.
position alone is

our

Federal

e?5lllgh: J311*
^

have

conse-

?nust' keep
.....

the whole picture in view.

where

for

reasons

shocked,

There

which

tion

never

anything

the

2.6

38.3

38.0

40.9

41.9

43.8

2.3

2.6

2.0

1.6

all

background keep these facts

sources.

——■

——

1.9

2,2
1.9

■■
—__

4.2

4.0

0.2

0.3

4.1

0-2

0.2

'■

2.2

1.7

4.3

5.1

——-

—

2.4

0.3

•

0.3

benefits—.—

and

48.3

42.8

—

42.5

45.2

46.3

'4.5

4.8

5.0

5.2

2.6

4.3

2.8

3.0

3.4

4.3

2.5

agricultural

6.4

government
1_—

4.4

4.9

4.6

4.5

1.3

—

housing*——-——

and

1.2

1.1

1.3

1.5

1.7

1.4

2.1

3.4

3.8

6.4

1.6

1.8

1.4

6.8

7.3

7.7

0.8

1.2

t ■;

1.7

—

——

6.5

6.4

7.6
'

Allowance

for

contingencies—I—,

—

0.2

21.7

24.2

26.1

27.3

33.4

67.8 :

Total*

Grand

■

19.1

domestic-civilian*—~

Total,

64.5

66.7

71.4

73.6

81.7

rounded-and may not add to totals.
'•'For comparison,
includes trust fund expenditures of Federal National Mortgage Association begin¬
ning fiscal year 1955, and highways beginning fiscal year 1957.
Figures

NOTE:

are

Federal credit programs for housing, Veterans, agriculture, com-

Renewal

Criticizes Urban

Program

ffi&rSSd

suggest the new proposal to
ihe urban renewal pro-

J}*®1?®®?' etc. rnis hat-increased,
of domestic- $12 billion in the last three years,

gram

civilian

example
which are bot-

programs

Federal expend!-

tomless pits for
tures 1

••

In the first

should

erty.
the

opposition

keep

place, I think people

their own prop-

loss

absorb two-thirds, of the

huge
subdivisions to be used for private
tailed

cleaning

Federal funds already available "
for

this

program

for loans and $1.2

grants.

total :$1 billion
billion for cash

tremendous

These

*.Grants
ernments now total S49 billion,
There are now 62 programs for
state and local subsidy.

veI^s

aao

thl^wa^ onlv

one

slate

years ago, tneie was oni\ one stale
aib program of any consequence,
enThat was the highway program
city which was costing $250 million

know of no reason why
Federal Government, should
I

1 mention these categories of

Federal

expenditures

simply

illustrate the areas where there
maY be subsidies
meet the
eye.

For

sums

which do not
are others.

There

instance, who is subsidized by

This

brought

the

condi-

tions of the past fiscal year which
ended June 30 and the present fiscal

year

Original

which started July 1.
estimates for these two

years showed a combined surplus^23 billion By the 2atest fig¬
this

has

bined deficit

changed to

com-

of $15 billion.

many

of this nature.

2.3

and

Interest

been

never

may

were

0.6

2.0

1.5 V

...

expand

shall

has

aid

resources

General

emphasize these figures to tell
Federal programs in mind:
the story of record breaking de¬
be popular, or even
Total public expenditures in this terioration in the Federal fiscal
desirable,, but nonessential.
country—federal, state and local— situation.
Much of the domestic-civilian this year will be
approximately
Seizing upon sputnik and reces¬
spending is for subsidies.
And $145 billion
sion as justification, Congress in
many of these subsidy programs
Federal, State and local gov- the past session insisted upon enare
bottomless pits for Federal ernments this year will take ap- actment of
legislation which could
spending and contribute to sky- proximately $130 billion out of require Federal expenditures at
high inflation. Most of the pro¬ the- pockets of American tax--an annual rate of $80 billion for'
posals following the recent elec¬ payers in revenue Receipts from years to come.
find

0.5

1.7

3.6

aid—

welfare

and

Commerce

Fiscal

understand, the President in Jan¬

ures

Background Facts

$14.3 billion, or 75%.
It is in, this category

allowed to

eign aid categories have increased
from

0.6

1.9

the postal deficit?
believe But in the complexities of big will not be a
drop in the bucket
It may be contended that the
government, with tremendous
if we are to undertake these projbalances remaining in prior ap—
foreign agricultural trade develpropriations,
expenditures rose ects in cities and towns from one °Pment programs are another subnotwithstanding. They were ris- end of this country to the other,
Federal subsidies generally conAmerican agriculture. Are the beneficiaries of governing before sputnik and recession stitute
a
vast field of domesticment contracts with industry and
appeared on the scene.

and

They exaggerate the conditions

domestic-civilian

0.4

1959

2.6

he will recommend a balanced
budget for next year.
is uporr us.
I wish to emphasize the serious';
Contrary to general understand- ness of the problems confronting
ing, recent great increases in Fed- us. I believe by your own examieral spending have not been for nation you would find I do not
been

$40.8

than domestic-

services

Natural

hope

Reversal

aff&irs

Agriculture

back on an even peacetime keel.
Can't

foreign

other

Veterans

noted his actions since that time,
Congress responded, and reespecially his orders of the last duced appropriations by billions.

budget so difficult to reduce when the necesity

have

$39.0

Domestic-civilian:

August which
developed
spontaneously
when Congress adjourned. I have from the grass roots of this nation.

makes the Federal

defense

195»

$38.4

0.9

last

weeks. I hope

1956

$35.8

with

1955

$35.5

48.6

1954-1959

•

dollar

recommendations, and the Con¬ uary 1957, brought in his budget
gress
enacts the
authority for for fiscal year 1958 proposing an
Federal spending.
Both respond $8 billion increase in expendi¬
It was the biggest peace¬
to the expressed will of the peo¬ tures.
time spending budget to that date.
ple.
You remember that budget two
The budget for the new fiscal
ago.
The
country
was
year, beginning July 1, is being years

kind that few

this

INcreased

$14.3

43.3

security—

other

and

International

we were

But

collectively.

formulated

year.

From experience it is to be ex¬
pected that, if such new programs

gave

been

have

1.9

national

Subtotal,

After a quarter-century of deficit financing, rising debt and spi-*
rating
inflation these balanced
budgets

in the same period'
domestic-civilian ex

But
1954,

penditures

1.0

production

assistance-

Military

stop.

forewarned.

are

(2)

since

defense

and

energy

Subtotal,
Foreign aid:

prise democracy is being under¬ than 3 cents a year.
mined.
In
our
Finally, in two consecutive fispresent position
deficits totaling $15 billion.
there
is no assurance of fiscal cal
years,
1956
and
1957,
we
Sees $300 Billion Federal Debt
soundness for the future. In these brought the Federal budget backs,
At
the present rate,
Federal circumstances, how can we hope into real balance. At the same
agencies would spend more than fully to develop the great poten- time we financed substahtial tax
reduction, reduced the debt and
$400 billion in five years. This tialities which lie ahead?
I think the Situation is urgent, slowed inflation down to a virtual
would mean a Federal debt of

This

$40.3 .r

———

from

1954

security:
Military functions

without

the

average

expenditures in
than domestic$48.6 bil-

^Expenditures—Fiscal Years

National

In that period the
from about $16

billion, and

other

(in billions)

rose

$274

can

lion to $48.3 billion.)

debt

Federal

Democracy

Between January and

balanced budgets in the past and
and current years
to combined

were

real exception.

Undermines

c^Y\Van since been DEcreased $300
bave
million
1954. from

ex-"

straight-from "the

—

that Federal

seen

domestic-civilian

;

(From these figures,

through

our money

peace-time period to my knowl¬

assi$tancehave beerf DEcreased '

billibnV \ ^

history we met our

spending, unchecked national in the Federal Government, we sources, this nation grew great in
debt, and spiraling inflation. This have descended to a level of state the short span of a century and
situation jeopardizes our system socialism which is obvious, if not a half. But in our time we have
of government and our future.
admitted.
not only continued exploitation of
With only two bonafide excepSocial democracy is a subter- our resources, we have abandoned
tions, we have been on a deficit fugs for, spuiid government and our traditional policy of fiscal
financing basis for 29 years. The constructive enterprise. Its evils soundness,
For 25 years, through 1955, we
fiscal situation deteriorated faster are historically documented whernrr this year than in any

$1 A" billion from $3.6 billion to

tures have now been increased to\

solvency and integrity of the dolthrough
continuous
deficit

$700 mil-billion do $2.61

billion,

emergencies budget documents, ; here is the
subsidizing business, industry, when they arose, but when they Federal spending record for the
ness.
Assurance of fiscal soundness in private finance, agriculture, trans- were over we promptly restored period from fiscal year 1954 to
date:
the future does not now exist, portation, power, health, educa- sound financing, characterized by
(1) In categories other than do¬
This is my concern.
tion, States, localities, individuals, balanced budgets, and began paymestic-civilian:
We can not perpetuate national etcetera.
ing off the debt,

lar

$1.9

expenditures intwoconsecuthr#T^$2.2 "billion/
"'r.j."
fiscal years—1954 and 1955.;
Expenditures fbr fofeign ec<momi^
* But from a low point of $64.5
aid have been INcreased $40$
billion in that period, expendi- 't:- million from $1.5 billion ..to $1.9,*

are

The Federal Government is now

with military prepared¬

energy'

atomic

INcreased

sound
crease
in
money there will be neither solid date have led to continual de- al emergencies,
penditures
economic
progress
nor
national mands for increased subsidization.
For the first 150 years of our
security

been

■' '
.
j
the present administra- 'Expenditures for foreign military

year.

are figures y
When
comprehension, tron came into office it established ; individuals
become in- a commendable record. It reduced—

When

million.

$400

lion,- from

ordinary

prudent business, sound financing, rnent is changed. Democratic govMore

and

solvency

have

came

These

trillion dollars.

beyond

Expenditures'for

fixed

destroys

government.
Without

billion

Federal

But

years.

in that costly campaign
close to the level of

budgets
never

a revolution wringer.
The nature this year's estimate of $81-7 f>il- "Exbenditiirps for intemntmnni. afin- and the process may vary.
But lion.
For accurate comparison
fairs have been INcreased $100 *
this figure includes 'expendituresprovident investment, invariably the form of governmillion, from "$200 million to!

Inflation

tive

War has been over

The Korean

by the 1939 index.

cents

Requires Sound Basis

Defense

debt

Private

All

the

New Deal"recovery

civilian

The

expenditures.

Joint

Committee.on Reduction of Non¬

essential

Federal

contemplating

Expenditures is

study of the sub¬

At the outset

Federal
we

are

Aid

the

de¬

Federal expenditures?

Reaction to
a

would

confronted

with two questions: What is a

subsidized

that they think they have a
vested
interest
in the
lev>el
of
gree

justifiable

ject.
Extent

institutions

sub¬

reductions

indicate

year

ago

affirmative

answer."
J

been built
payments,
you call them subsidies
Nearly 40 million people will
receive direct payments from the or choose to avoid the ugly word.
Federal Treasury this year.
This People have gotten the idea that
includes
nearly 200,000 Federal they-are getting something for
employees working overseas. Gen- nothing.
sidy?

Who is subsidized?

great fallacy has
around
Federal

whether

erally speaking, these 40 millionThere is no. greater mistake,
people with their families could American
taxpayers
sooner
or
reach a number equivalent to half later pay every dime of the exof the population of the United penditures
through
these
pro-

States.

•

Nearly $80 billion is outstanding
at this moment under so-called

grams, and more,
When we are on a sound basis
we

pay

these costs directly from

taxes.

we are

deficit basis

charge them into the. debt,

interest

the loan -until

reduce

expenditures when unex¬ want then; free enterprise
system
balances in prior appro-: to survive, in order that we
may
priations approach or exceed the pursue this nation's great mission
pended

pay*

pay)

Qff the, obligation, and stimulate newrequests to which
annual
inflated prices in the process. ■; , t
Congressional action ordinarily is
In either event, about 15%.
goes limited. '
;••%
into overhead for Federal admin-,
In
the current year approxi¬
istration.
Since I have been in
mately $147 billion will be avail¬
the Senate, interest on the Federal
able to Federal
spending agencies
debt has cost the taxpayers of
$75
billion
or
more
in
—

new

this

country

than

lion.e
Until

tures

$100

Federal

get

expendi¬
the budget,

down, balance
stop inflation, there

and

bil-~ spending
this year,
■

reduce

taxes

deficit

basis

when 'we

simply

are

charges

carried

hope for sound tax reduction.

billion

The

authorizations

from

President

prior
has

years.
re¬

sponsibility, first to originate the
budget with requests for the new
year,
and second to administer

the

tax cut into the Federal debt. This,

the

expenditures

aggravates the whole deficit-debt— and

inflation cycle.

new

from

both

I hope

money.

take the lead

old

will

not

only in balanc¬
ing the Federal expenditure bud¬
*v
'
get for the coming year, but in the
../Others may have their own pro-, full recovery of our fiscal sta¬
grams for the coming new Con¬
bility." '
' •
gress.
Minewould
have
two*
On my own experience I. submit,
objectives. The first would be to that expenditure reductions of the
Suggests Fiscal & Labor Reform.
•

•

balance the* Federal budget.
second- would

The

legislation

necessary magnitude,
if applied
with
care
and
wisdom, would

abuses

correct

practiced by un¬ strengthen
scrupulous' labor leaders primarily, en
our :
a

g a

but

also;

against management and the pub-

lie.*. •.•-/.,••;
r
Practices;j revealed by the Mc-

want,

we
must have-a national crusade from
the grass roots to save our
repre¬

sentative
founded

which
is
the free enterprise

our

certain

that

Such

crusade must be

and led

inspired

by the President.

tant of

all, it must be fired by the

people

themselves.

From

long

say the voice of the people

the

great

reduc¬

Con g r ess- to

management and the general pub¬
v-.

all

the

virtue

whole

military program

and

other citizen.
Our people must remember that

...

purpose

govern¬

ment to support the

support the best interests of the:
the

not

man;

•!

powerful-

yield to

national

one

defense

•

armed

the

Congress convenes, great

new

efforts

will

legislation to

made

right-

ments for
in the

to-work laws invalid.'
;

This would

tion

passed
Act.

scalesand

Such

and

certain,

too,

that

these

labor leaders will

same

attempt to
unemployment insur¬

federalize
ance

administered

now

states.
A

strong effort to this end

made

the

last

year.

Senate Finance

The

ance

was

de¬

purpose

the

move

unemployment

not

only

to*

insur¬

standardize

states, but also the

payments' for all ousiness and in¬

dustry.
To federalize

powerful
Congress

applying
for

that

mean

Labor Lobby

eonstantly
and

unemployment

would

surance

would

pressure

increased

in-:

the

off

and
efficiency for
defense at less money.
Th<*- waste in foreign aid,
espe¬
economy

the

Marshall

four

aid

expenditures

benefits'

aid

1948

foreign

now

for

expenditures
have
more,than $#0 billion.

our

foreign
totaled

Expenditures for economic aid
should, be. sharply curtailed. Our
best

interests*

and

preserving/, the,
American

those

our

ternational

our

integrity

dollar

of the
stimulate in¬

trade.

legislation will be

required for substantial reduction
in domestic-civilian expenditures.

Callg for Presidential Action

tives—correcting abuses by labor
But I urge the President in his
balancing the Federal, January Budget Message to sub¬
budget—will be extremely diffi¬ mit a
hlueprint for. substantial

leaders and

cult.

the only man

remain¬

expenditure reductions in all cat¬
ing
in
the Senate
who
voted egories" and
to
follow
through
against the Wagner Act. And for with specific legislative recom¬
25 years I have analyzed the bud¬
mendations where they are nec¬
gets submitted
by three Presi¬ essary. I pledge him my
support
dents.
■
and
I
hope this objective will
Year after year,
I have gone have yours.
over
every expenditure and ap-.
I am aware of the
cynical con¬
propriation item—and these num¬ tention that what
this
country
ber some 1,100.
wants is continuing inflation and
I know the problems involved a "fast buck"
economy, with no
.

our

outmoded

procedures.

appropriation

know

the

devices

regard

for

the

certain

conse¬

and the next generation.
But I feel certain that the
great

quences

which have been developed to by¬

appropriation

control, such majority of the people of this na¬
as
authority to spend • directly., tion: want; the integrity of our
from the publicdebt ,r. ;
•money* protected, want their form
pass

(,I

know

how

difficult

government

the

auto sales

mil¬
.

the

Harry A. Williams

1959

sales

about

same

900,000,

about

this year.

-HTU-1

While

there

Chicago Association of Stock Ex¬
change Firms,

has

„,i

„i

marked

been

these

preserved,

and

estimates

once

order

been

the market

may

has

adequately tested.

Guenther M.-

It is, however, still too early for
such a
reappraisal.
Because of

P hi 1 i p p

strikes

,,•••

•.

••••>••,

•

Paine,

Web¬
ber, .Jackson
•Mr.

not

been
-of

the

is
Gordon

Bent

cannot be

new

the

cars

transit

500,000 nationally, which
a
normal working
This level may not be

n^ur

Relations

until

late

January

01*

Arthur

Grossman

Best

would

the fifth best

the

not

would

repiresent

ket

which

Burnham & Co. to

healthy

rather

and

Street,

members

Exchange,

relative

Company,
15
York City,

Jan.

York

will

Stock

admit

Mark Sandler and John E, Meyer
to partnership.

Witi?
116 948

and

buses,
and

cars

and

cars

Chapman Co.

To Admit to Firm
CHICAGO, 111.
Gardner
to

—

tho

Jan. 1 will be admitted

lav?

rank,
cars

partnership in Farwell, Chap¬
& Co., 208 South La Salle

Street, members of the New York
and Midwest Stock

Exchanges.

With Shearson, Hammiil

Wells has become associated with

Shearson,
South

Hammiil

Grand

Avenue.

Co.
He

520
was

formerly with Francis I. duPont
& Co. and prior thereto was an of¬

1 337 193
wh

B113 344

trucks

general

ficer of Professional Service Plan.

and

demand

Williams

Conference

before
for

the

was

etc.—was

for

built

better

1958

and

times

Labor Peace

Contract

Thus, the automotive industry is

lookin£ forward to a,future rich
in nnarket potentialities* Furthermore' with three*-year union contracts negotiated and signed,, it
plan Qn relative labor
stability ahead.

can

and

But,

aside

nomic

from

all

peace

the

eco-

fact0rs

brightening
the
outlook, is the inipressive line-up of new car aiid
aut0motive

truck models for 1959.
vorabie

dealer

and

Highly fa-

customer

rf-

actjons

to these new- products
given manufacturers their

substantial

reasons

all

optimistic.

to
7

Two With Fairman
(Special to The Financial Chronicle)

LOS ANGELES, Calif/-—-Joseph
Ehring and Edwil> D^; Waio-

wrjght

have

joined the staff of
uo., 210 West Seventh
Street, .members Of the- Pacific
Coast Stock Exchange./ Both W6Te
Fairman &

uJuS'sSST'Wart-' ^merly with Bennett - Manniag
Dec. 9, 1958.
Company.

Commei

ce°of°the

ington,

C.,

Mr.

1950^s.

mjjrkyt

saved tor oetter times.

up-

through 1959, materially affecting

Outlook

fhfilvr,nT ^

occurring in
the past few
months is expected to continue

Business

rJ?

t itho

most

business

turn

the

expansiton ,of to.

1,-

Upward Factors

address

nl ^infr?nc Trv
nine millions in?,

♦An

;

estimating the 1959 increase,
specifically, industry economists
cite the following as major points
in their reasoning:
The

fUr^u ^

l^f ihi

were:

and

lea^ing on into the

ANGELES, Cal.—H. Daniel

number

en^e hjsto y of the U.. S. Butem°tlye industry lias, been one of

(1)

(Special to The Financial Chronicle)

LOS

total

have
Five

man

growth' increasing family income,

qv?
I
1 206 266^ trucks
duh
with
13344
1

19o7,
1,107,176

a„

de-

Compared with these totals, the
expectations for 1959 a^e modest.
But the industry has good reaso
for believing the
predicted upswmg will be only the beginni g
1960's.

estimated

buses.

Andrew J.

the trade-

Finally> the fact that total
1958 cfar sales m the domeshc

±un

Farwell

advantage

ore-

biggest

four

car? n?d

5 v!10pC

wiro

aye

saved

industry's

in order of
1955, with 7,920,186

New

of the New

inventories

car

fulfill^
^ f demand resuJtin^ro^
eJ°Jnf^ 2 nnni^if«An
m the economy —ie- population

reiatlve 10 me pre

years,

Burnham

when this

relatively low and prices are up.
gjves the new car buyer a

and

than

relative to the

credit

new

pasi

Used

mm-

manufacturers

rising

The

Admit Two Partners
Broad-

(4)

But it

book

Straus, Blosser & McDowell;
profitably. It would compare
Matthew J. Hickey, III of Hickey with such years as 1951, 1954 and
& Co., Inc., and George R. Torrey 1956.
But, unlike them, it would

ii 5 .iJl
ceding year.

potential

situation developed, an expansion
of demand for credit' goods has

dealers could operate comfortably

cUnine trend

exceeded

followed.

year

and

of McCormick & Co.

buying;Mh the'

;

building T

hold,

best

sales

industrv's rocord
,

Year

forecasts

present

1959

M. Witter

of Dean Witter & Co., Treasurer.
New
members
elected
to the

the

even

Farwell,

elected Vice-

was

and William

were

backlog

;

Fifth

Below

have

extensions,

continued growth and expansion.
glance at annual motor vehicle
sales figures through
the years

F^rMarv

Committee

Exchange.

Farwell

Chapman & Co.

repayments

credit

considered

reached

auto credit outstanding has steadily declined> During this period,
joan

rise

States Group of the early February.
presently a member of

Public

Board

market

en-

business.

® in c J the end of 1957 and
throughout the 1958, /Tecessww,

inventory.

of the Midwest Stock

Chairman

car

hands and

to about

Central

Francis

made until stocks of

t he.

IB A and is

the

slow

was

result, dealers are
adequately stocked for

yet

dealers'

Executive
Committee

passenger

the

mcrn-

Pr°duction

models

1959

the
the

generally fluctijwidely than the curve

often-cited, factor
is the automotive credit situation.

industry,

Thus, while early signs are
couraging, a reliable test of

sociation

the

curve

all

re¬

rela¬

(3): Another

full sales effectiveness.

the

during
former

the

starting.

Bent

has

throughout

xu11

& Curtis.

ates
for

business

industry,,; since

automotive

lion estimated

general

should result in,
greater
upswing

tively

units

4.3

The

covery

—25% above

revision

This .wilLrequire

(2)

5.5

the exercise of
present condition, I think the Gov-: statesmanlike
-leadership by the
eminent of the United States is President: and
the
unwavering
dangerously vulnerable to the. in-, support of Congress and the
pub¬
fluence of ruthless labor dictators. lic. *
*
:
I
am
fully
aware
that
the
achievement of both of my objec-:

million

con¬
government

generally.

sumers

reach approx¬

imately

residential

increased

spending, and a more confident
attitude toward the future by con¬

should

year

increased

struction,

calendar

has been elected Chairman of the

succeeding

off of plant and equipment spend¬
ing following a rather severe de¬

cline,

passenger cars

the

spending, the halting of in¬
liquidation, the leveling

sumer

ventory
:

CHICAGO, 111. — Gordon Bent, unanimity among the forecasters,
partner of Bacon, Whipple & Co., gome have indicated that upward

run

To date

I know basic

Early introduction of both these
proposals is certain, and the need
•

have

than a decade.
gross
authorizations

*'•

resist them is obvious.

Plan

Postwar

years.

be- allies,- would be better served
oil,

extension of the payment pe¬

riod.

Reor¬

acted

and

average

Eleet Officers

past year, is

for

the law for all

Bill.

Military

It is time these actions paid

was

federalize

survivors

Chairman of cially "economic aid, has been ob¬
Committee, I vious, from its inception. We en¬

fought the proposal and it
feated.

ganization

the

of economists

consensus

by U. S. pro¬
ducers during

truck

Chicago Exch. Firms

man

the: in
-

increased

enacted

casts

V ice-Chair¬

Jhe

both

tor 1958. Fore¬

to compete for capable personnel.
In the past session of Congress

resisted to the utmost.

down

benefits to allow the armed forces

effort should

operations

military establishment. Wc
the Military Procurement
We
revised
military pay

authority

still
further concentration of power at

Washington.

businesslike

be another usurpa¬

state

services.

We adopted the Eberstadt amend¬

enact

states'

make

sales, but not a
is expected in 1959. It

advocacy
but, as the
labor czar. v
President has-said, there is* waste
I favor the right to work. But. and
duplication in the military
statements by certain labor
departments.
leaders make it definite that when
We unified the

laboring

the line.

re¬

frequently accused of be¬
ing against labor. This is because' methods of warfare.
I

evaluate; the/ objectives ; of our
spending,,, in review
of
changing

...

the automotive market.
Several
of the well-known/factors behind
this upturn are: increases in con-

and

record year

every

With* respect to defense expen¬
ditures, we should, rechart the
•

A decided upturn in automobile

production

democracy as out of the in¬
contrasted with dictatorship.
; ,i
dustry, that
/So. the job is up to you and
sales of
new

all

Would Revamp Military Spending

■;

made

these:-

correct

abuses.', T* shall* vote for it again
this year. It should have the
sujp-:
port of the rank .and file of labor,
lic.

can

,w.

in this

people.
The national interest must come
Clellan Labor- Rackets Committee
Federal spending categories—mil-;
ahead of private gain.
are. ai national
fcdisgrace.% I voted itar-yp-foreign aid, and domesticSo,- to achieve our objectives,
for legislation nf; the past session
civilian.'";'-'
there must be sacrifice
tions

would constitute

constitutional

our

;

production and, if confirmed,
healthy market for manufacturers and
dealers. States the
industry has good reason for believing
this is the beginning of an upswing trend
leading into 1960's.

the
can

country, if it is loud enough, will
overcome
selfish and highly or¬
ganized minorities and will pre¬
vail—that

experience

Senate of the United States I

production of 5.5 million

vehicles next year,, which
may be subject to upward revision
soon.
Mr.-Williams indicates the present figure would rank
below the fifth best year in auto

It must

;

supported by the CongressHouse and Senate.
Most impor¬
-

Automobile spokesman foresees

strengthen

such

New York City

Job is Up to Us All

Managing Director, Automobile Manufacturers Association

system.

the very foundation of our democ¬
racy rests upon the fact that peo¬
strength¬ ple must support the
government.
international position. ' :
It is not the
,

By HARRY A. WILLIAMS*

democracy
upon

national defense and

our

Brightening the

strength¬

our economy,

government,

t,; labor; itself,

world. -' /•••;;
this is what

dual

Factors

the
If

enacted

and approximately $72
unexpended balances

over

/Is
well
to

Jf'e S<?e /I

as our

in our issue of Dec.
We urge our readers to give

18
it

prayerful attention—before the time comes when we shall
all have good cause to regret not insisting that time serv¬
ing politicians and monetary cranks leave our monetary
and credit system in a sound condition.
We call particular attention to such plain commonsense as this from the lips of Mr. Martin:
major problem

"The

work and give

...

deficit becomes fuel on the fire of inflation. In effect, it
pumps air into the business structure as if it were a balloon
and eventually leads to more serious recession when the

duty to give prominence

what he had to say.

is how to get people to

them jobs that will be

mix.

balloon pops

omy

based

inescapable today

Continued

from first

•

Chairman has

further

some

which all would do well to heed at this

words of wisdom

time—and to im¬

press upon the minds of legislators and
officials alike. Take this pungent passage:
"Let

adminstrative
•.

not succumb to the belief that these unem¬

ployed people will be assisted by flooding our economy
with a stream of easy money. The better way to get these

that interest rates

are

such

dominant force in the econ¬

magic so that they alone can
determine the level of employment, unemployment, and
the use of capacity—at high or low levels."
Of course, the Federal Reserve authorities know well
enough that they are not the only factor in this business
of preventing or controlling inflation. They would not be
worthy of their high office or fitted for their great
responsibilities if they did not fully realize that a balanced
budget—yes and a budget that permitted net debt retirement—is as essential as wise Federal Reserve policy. Of
course, budgetary matters are affected with politics, and
a more timorous man than Mr. Martin
might well decline
to have anything of consequence to say on the subject,
especially in the political situation that now exists in this
country. But again our hat is off to the Chairman when he
tells the country in straight flung words and few that we
—rich as we are—cannot afford the
luxury of huge deficits
as a
regular way of life.
y
j
These words of his should be dinned into the ears of
omy

that they

possess some

Ok Ihe Threshold of 1959
plans of business in the October
survey to be raised above the lev¬
els of 1958.
But an upward ad¬

imeaning

longer

over

escapes even

again until.their vital
the thoughtless:

still

are

short

sup¬

ply.
DOT :

:.v

Personal Income

Personal

;/;*-

income ;in /November >

tons was

business
national

well

the

investment
1958.

increase

gross

there

•

1959 will be

product in

above

modest

business

in¬

vestment: in

1959,: the gross na¬
tional product in terms of present
prices will be about $468 billion.
The economy that will develop
with recovery
will be - one in
which consumption expenditures
will be considerably more impor¬
tant and investment expenditures
considerably less important than
in the boom economy of 1956,
The substantial economic prog¬
ress

of Russia and the drop in

rate

increase

the

production in
in the last

the American economy

five

indicate the need for
stocktaking to ascertain

years

careful
how

the

rate

American

increase

the

might

economy

largest > Wage and salary disbursements /
11% in Novemberk were 1.5% r above
below November, 1957. A combi¬ November, T957; inu spite of the
nation of change-over and strikes fact that wage and rsalary employ-,
reduced automobile production ment
was
about
one ^ hundred ; ■
drastically iii the three months of thousand less than in November;
7v;• ■;
August, September, and October. 1957. '.;; • 7c.:< >*'
The total output was 573,961 pas¬ v
v::::-;.iv
l: y?
senger cars, or slightly less than
Retail Sales and Consumer Credit
half the output of 1,170,137 cars in
Retail sales in November in¬
the corresponding period of 1957.
A high rate of automobile output creased, after adjustment for sea¬
by 1.4% to $17.2
is to be expected until at least the sonal factors,
end
of
the year and probably billion, the highest figure on rec¬
ord—$46 million above the previ¬
longer.
...
ous
all-time high of July, 1957.
Housing starts in November were
The sales of durable goods, how¬
at the annual rate of 1,330,000, the
ever, which were responsible for
highest since August, 1955. Not
most of the increase between Oc¬
mately

the

513,000 oars,

since December, 1957, though

•

much further rise

in the rate

housing starts is in prospect.
Construction, which set

all-

tober

and

November,

were

still

0.5% below November, 1957. Sales
of non-durables were 5.9% above

time high in October, set another

raised.

Employment

and

The outlook i£ for

November, 1957. Sales of durables
high in November.
It are still, low relative to personal
was
6% above November, 1957. incomes.
,
*
More than
three-fourths of the
Consumer credit outstanding in;
all-time

Production

gain

good rise in

production in the fourth quarter

that output was
greatly hampered in durable goods
manufacturing in October by
strikes.

Industry, after living off
of inventories steadily for over a
year, is at last producing at about
the same rate that it is selling..' In
dollar terms gross national output
in the fourth quarter will un¬
doubtedly exceed the previous all-,
time high in the third quarter of
1957* but in real terms output will
fall short of the peak in the third

residential

15%. There

increased

which
a

attributable to the rise
construction,

was

new

large drop of 38%

industrial

year

and

small drop

was

in the last

construction,

of 2%

com¬

mercial construction.

increased

October

second

—the

by $20 million
increase in

smallest

The
credit
outstanding is only $2 mil¬

October in the last 10 years.

volume

total
now

lion

consumer

than it

There has been a

year ago.:

was a

noteworthy drop

•

outstanding automobile loans
is usual in pe¬
is responding which are now about $1.3 billion
less than a year ago. In. April out¬
only slowly to the rise of produc¬
tion. There was a drop in employ¬ standing automobile loans were-

Employment,

riods

ment

between

recovery,

October

and

No¬

vember,
but the decrease was
moderately less than seasonal. The
number of wage and salary work¬
on

ers
c u

was

the

u ra

payrolls of non-agriestablishments, which

reduced by strikes in October,

recovered

to. almost the

Septem¬
employment,

about the same as a year ago.

Contract Awards,} rand Inventories
:
;

New Orders,

Construction contract awards
October

were

26.6% above Octo¬

1957. The year-to-year gain
particularly large in the case
of public works,
where awards
were up 62.7%, and in residential'
building, where awards were up
ment rate of 5.9% is the lowest
36.9%. In the four months ending
since January.
with
October, construction con¬
Part of the explanation of the
tract awards have averaged about
slow response of employment to
12.5% above the preceding four
level.

ber

Factory

adjusted for seasonal, reached the
highest level since February, and
the seasonally adjusted unemploy¬

the

ber,

was

is a much-needed
months, indicating a rise in the
efficiency. Although the
near-term outlook for construc¬
rable goods manufactures at 152 index of factory output in No¬
tion.
is well below the peak of
1958, was
1.4%
above
167 vember,
Heavy
construction
contract
reached in December, 1956.
November, 1957, the hours worked
awards, which ran well above last
Steel
production has scarcely in manufacturing were 3.9% less
year in every month from May to
changed since the week beginning than in November, 1957, indicatSeptember inclusive, were 17.7%below last year in October; but in
TABLE I
the six weeks ending Dec. 8 they
Oct.
Oct.
Mar.
Dec.
Aug.
Sept.
well

still

reached

the

below

peak of 147
1956. Du¬

in December,

recovery

gain

18.3% above the correspond¬

19£H>

All manufacturing and
All

manufacturing

Durable

All

1958

were

1.55

1.52

ing period of last year.

1.90

1.93

2.09

1.84

1.81

2.29

2.56

2.20

2.15

October, after correction for sea-^

1.58

1.66

1.50

1.49

sonal

trade

1.10

1.12

1.16

1.20

1.06

1.05

billion,

1.78

1.51

1.50

0.87

0.88

0.81

0.80

1.43

1.45

1.50

1.43

1.38

1.84

1.93

1.95

2.20

2.06

1.91

1.25

goods

1.60
0.85

1.47

tember, the highest figure since
May, 1957.
In spite of the large increase

1.17

1.20

1.18

1.15

1.14

Auf.

Oct.

Feb.

Mar/

Sept.

Oct.

1957

1957.

1958

1.99

2.06

2.18

2.10

1.83

1.77

2.40

2.61

2.86

2.60

2.19

1.49

1.58

1.66

1.49

goods 1.49 *

seasonal

influences,

slightly. At the end of
October they were $45.9 billion in
comparison with $53.2 billion a

2.07

2,12

for

dropped

1956

All manufacturings 1.80

goods

new orders,
unfilled orders of
manufacturers,' which
are
not

corrected

Dec.

Nondurable

influences,
reached $27.8
or about 3% above Sep¬

1.72

0.86.

goods

; Durable

in.

1.57

TABLE II

;;

New orders of manufacturers

2.22

goods

Nondurable

1958

1.72

1.51

All retail trade
Durable

1958

1.64

2.12

goods

Nondurable

1957

1.60

goods

wholesale

Durable
•

1957

1.56
1.82

trade

goods

Nondurable

....

and

Many kinds of

October, 1958.

expected. No gain in steel made ah ali-time high, recovering
justment in investment plans is output is expected until after the from the small I dip in October f
to
be
expected.
The
recovery first of the year.
caused by, .change - overs in the
seems
to be well* grounded, and
Automobile i passenger car pro¬ automobile industry, and. strikes in ^
even
without: an
expansion in duction in November was approxi¬ that and other industries.-

over

6,911,000.
Unfortu-'
small drop in
foremen

was a

8,745,October, 1957, to 8,539,000

craftsmen

spending October 13, when it reached 2,003,000 tons.
In the week beginning
Dec. 8, steel output of 2,015,000

the 1959 capital

not led

file

right through the reces6,625,000 in October,

from

1957, to 7,230,000 in October, 1958,
and that the number of managers,'
officials, and non-farm proprietors
increased in the same period from

000

».

and

professional and
employed in¬

and kindred workers from

'the rank

sion

workers

6,505,000
to
nately, there

people back to work: is to concentrate on fundamentals
that permit the. forces of the market to operate. Rising •
quarter of 1957.'
^r\ - I
'
Industrial production in Novem¬
interest rates, when they reflect response to improving
ber rose/ after seasonal adjust¬
business conditions, have never been a sign of weakness..
ment, from 138 (1947-49 = 100) to
When artificial forces prevent their rise it may well lead,
141, due largely to the big jump
to knots which would complicate rather than assist our
in the output of durable goods
manufactures made
possible by
progress. If business conditions continue to improve, it is
the settlement of many strikes in
normal to expect interest rate to rise; if business stays
the automobile industry. The in¬
where it is, interest rates will probably stay about where
crease in the index of nondurable
they are, and if business begins to decline, interest rates
manufactures was only from 134
to 135.
The index as a whole is
will decline. But let us not be carried away into thinking

;

number

technical
creased

page

in spite of the fact

Further Words of Wisdom

steadily grow¬

the number of craftsmen,

ducing goods and

the

permanent and

services which people need and want
at prices they are willing and able to pay. At the moment
we have unused capacities in industry and larger levels of
unemployment than we would like to have. Why has this
come about? Because of tight money? Not a bit. It has .
•corrie about because inflation got ahead of us. The seeds
of inflation were sprouting into the temporary overcapacity which we now have and a decline was inevitable." *
;
There are many explanations for each recession, and •:
there is rarely anything in the nature of complete agree¬
ment about them. There are those who doubtless would •
have a somewhat different account of the 1957 downturn, *
but we may rest assured that no one whose views are
worthy of confidence would hold for a minute that tight
imohey was The real culprit. Restrictive credit policies
coukC of course, bring an unhealthy and unwholesome
boom to an earlier end than otherwise would be the case
or limit its magnitude. That would be a perfectly normal
course of events and one which we may all be grateful
fori Applied in time it might even prevent the develop- .
ment of such an unfortunate situation. That, too, would
be all to the good. But to point to any policy or program
of the Federal Reserve in recent years as the real cause of
any recession in healthy, legitimate business would be
simply not in accord with the facts. All that the Board
did was to decline to go further in replacing savings with
arbitrarily created funds—the modern equivalent of print¬
ing greenbacks. A case could be made for the contention
that the severity of any halt caused by this policy was in
reality to be charged against lateness in inaugurating it.

workers

It is encouraging to note that

through the ages."

ing.

principles that are
they have been down

for professional workers and

skilled

time-honored and time-tested

valid and

*:V£ i- ••r:

/.•<

The need of the American econ¬

than would have occurred if it had not been
indulged in. Again let me say, this is not pleasant, but
with due respect to these people who talk about modern
times and outmoded classical theories what I am saying is

profitable. How easy this would be if we could only
achieve it by just spending more money. Unfortunately
experience has demonstrated you can not spend yourseli
rich, Lasting prosperity only comes from hard work, pro¬

The

ing roughly a rise of -more than'
9 % : in outputc per. mahhouiv Of-;
course, part of this change mayreflect a change in the product
'•

:
"There can be no question that when businesses im¬
proving and moving actively toward higher levels, a budget

•

Continued from first page

•

rnc'ix WF"«"«"a*Tr

x. rf cv"W#rt

(2720)

year

ago.

Manufacturers
or

did

not

increase inventories in

reduce

October,

Volume

188

Number 5806

The Commercial and Financial Chronicle

(2721)

yentories, however,/ continued to
drop, with the result that the book
value

in the

prices

recession

recovery from the
1954.
At that time,

take extra

care

to get settlements

proved durable consumer
goods
will have
diminished the rate of
personal saving.
One may question
whether the

that the-members find satisfacpronounced drop in the prices tory.
Leaders are influenced by

of total

manufacturing and /a
trade
inventories, after adjust- of farm products offset a small the fact that in
many unions there
menti for
.seasonal
influences, risejirithe prices of non-farm Is
increasing competition for ofdropped $200 million in the month products, with the result that the
fice, especially at the local level,
.

October.

ciation

The

National' Asso*

index

all wholesale prices re-

The

Purchasing Agents re- mained*; virtu ally unchanged
ports in November a drop in the throughout all ;of 1954 and the
firms decreasing inventoriesiand first half of 1955. The
present out*
a large rise
in the firms increase- look is for,a fairly sizable drop in
ing inventories—though the for- prices; of most farm products durmer slightly outnumber the latteiv ing the next 12
months. Prices of
,
The
ratio
of^ inventories j to farm products, continuing to remonthly - deliveries continued£tq fleet ^supply

relations

negotiations this year
have been the most difficult that

he has had

m over 15
years. The
McClellan Committee has been of

arousing

de-

consumption expenditures should
about 966 billion less
($46

~ta^abS^and

purchasing power of $20 billion personal
savintrVor
the dollar. With
long-term interest obout $303
billion. *On these* as-i
rates failing to reflect
economic
sumptions the Gross National
realities, the bond market (except Product
for the <vear =1959 in terms
for tax
exempts) is pretty much -of present
prices will be about
confined
to
investors, such as $466 billion
pension funds and insurance com- The crucial Question is "What
parries, who buy against fixed will
the prospect of an

that

use

no increase in
housing
the closing months of 1958
personal income %v 1959 should
be about $369
billion* oersonal

the-possibility of long-run deprebillionpersonal
ciation in the

a large chain
store, who has
negotiated 21 contracts in 1958,

immense

if there is

over

yield of Aaa bonds, which is now
about 4.1%,
adequately discounts

director

said

industrial

conditions^ of 1last ™and that there bepreformsin the

output of

-•

The

■

continued rise in
manufaef; But the crops of 1958, which will bers,;the
turing sales has reduced the ration mainly be marketed in 1959, are unions ;; a
of manufacturing
inventories to'10% larger than last year's crops threat.
monthly new orders to
_an ex- (though acreage Planted^ was the ; Wage

...

> '

The book

value

inventories

cits

8.9%

below

of manufacture

October

was

^odiate increase

October, 1957.

production

Barrmg
prices

are

most

farm

likely

weather,

products

ifSS than they

SLi9??:

trends,, shows

that at

globus
business 'cXern?

planning to.spoud, about the

same

concerns

The

last

prSes

^•wva?

.spending
*oomn

same

in1960

pnolo

scale

try. from

-In

about

^1 QRQ

1959.. As

the recession

the

vb/»Atr

recov-

proceeds,

few

weeks

jtal spending plans for 1959.
tor

reasons

this

The

conclusion

given in Section X.

are

.survey are

confirmed

by the fall

of the Securities and Exchange Commission and the Department
of
Commerce
which
show that spending on
plant and
survey

"equipment is.expected to increase
by the first quarter of 1959 by
about 3% above the low point in
the third qharter of 1958. The expected rate in the first quarter of
-1959^ would be equal to the aver-

age rate

1958.

trend

United

up-

persistent

imports.

over

November, 87.0

86.2

Dec.

'The -index

continues

wholesale

virtually

prices

-unchanged,

with .the

fairly .rapid drop in the
prices of farm products offsetting
Jhe slowrfse in the prices of commodities other than farm products,
(Table III) >.
...

-p

-For
the

the

second,

consumer

fxc

otner

•

are

the

increases

hour,
three

air

about

Oct

cha;1«e„A,drop

components offset riscs
The

con-,

^In^e,'^ toe'k^'to
these
two components

prices)

was

the

offset

the-rise in the other categories. The consumer price index
as
a
whole in October was
2.1%
higher than in October, 1957.

unions will drive

1938

All

commodities

other

1938

119.0 -118.0
90.2

Processed foods
'Commodities

Ending

Dec. 1

91.1

108.8; 108.5

Nov. 11

Oct.

127.0, 127.0

Oct.

1938

1958

1968

1957

119.2

119.0

119.7

117.8

92.2

92.1

92.3

100.5

91.5

109.7 ..109.5

110.0

110.7

105.5

than

farm products & foods

Mar.

126.8 -126.8

126.4

125.7

125.8

showed

for

1959

Hence,

inveSnt pStns
ofthe":Swi-

that

non-agricultural

concerns were planning
to spend 827.1 billion On
Dlant and

toS^he & g^bmton^n^ta

may

by -inducing

Bonds

States

77.1%

80.4

35.0

65.0

Netherlands

86.5

Sweden

33.4

An upward
vestment

22.9%

19.6

wage

United

Early

12.6

Canada

Kingdom-

that

The
billion

discourage

„

suhrlividpri
subdivided

as
as

Net

gion.

jkniu»

billion,

will

.upward

generate

personal

consumption expenditures

the year at present
prices should be about $468 -bil-

approximately $353.5 billion.

Government purchases of goods
and services

are

lion,

slowly increasing,
be about. $97.0

By the endof 1959^ the annual
rate of output will be around fMO

vQO

nroxronfori

survey

°fvan increase in the
.

season is now

$60.0

billion.

There

1959,

hut

let

these

m??!"

thin

greater than

i^ft1 Some
InmP

nf
of

thiJ
this

apnira+p5^
montks and the demand nf the generate
of

mnr^MPr^nil tnmmp
personal
more

because it will be produced with-out a
rise
in employment, but

judging by the 1954-55 experience,

jump in the demand of

an increase in production of about
capital markets. $11.9 billion will generate about
for the capital $8 billion of personal income. In
market will be temporary. After
addition, increases in hourly earnthe middle of the year the Federal
ings may be expected to raise the

.respite

the

Government will again be a substantial borrower and by that time

wage

,and

salary

component

personal income by about 3%, or

closes,

brought

The

Changing

Structure
Production

economy that will

with the

develop

recoveiy will poraessa

less than it was in
1656, but-total
consumption expenditures will be

goods

about
1958.

year

The

will

services, gross private invest-

appr^ch^

rate will
down to about 4%.

some accumulation of

the

pipyment

on-housing

assumptions the sum
of government purchases of goods

money sup" and
.

biUion .and,

U°v^uMeste^^"suggests) and if ex

about

than ;$32

are at the
closing months
of
1958 •< but no higher),
gross
private investment
in housing,
plant, and equipment, will be

purchase of plant and
equipment. The principal excep-

.slightly

billion above 1958.

same rate as in the

th|

—1

The

Personal income in 1^8 will Product for
be

seeking in the main to fund shortterm 0biigations/rather
than to

the

mi._

likely.

and raise
personaltconeump*
tion expenditures
by $3 billion or

JS:«

investment

dei"an(J? ?f huaness have been penditures

But

probably about $3

come

rather limited.-Business has been

business

reces-

modest accumulation
attumuianun
«1W,™

m'—1—

were

still very

inventories

$92.1

Hm
Hill

mediate'

was

revision of investment
plans and
the accumulation of

in boas

J"torce^But''the
large. But the

P y*'

investment-plans

Some

0,mi.-

purchases of goods and

in¬

above 1658 is
in spite of the fact

0f inventories

Billion

foreign

Personal
Personal

follnws*
follows:

<?h„nVt'nventorgT!!!

postpone-

plans '»of

much under the spell of the

approximately $435.8

g»ate

Capital Markets

in,,Minrc

—

made while business

Gross National Product

—

1953 will be

adjustment

investment

announced

even

spending will
probably meet unsympathetic
monetary policies. After all, -the

46.2
34.2

How Much Output iii 1959?
^

It
be

billion

reasonable

government
hjUion. If equipment.spendingvirbusiness shows on
plant andI

t.Qr,.

13.5

66.6

65.8

out

spending

around

87.4

.53.8

;

turned

larger—$28.7 billion.

Germany
Italy

on the capital mar.

finance

LSL

Wi.*;
outlays
Country

government on the capital market
will be much diminished. At the
same
time there will be no im-

-Month ofNov.

decisions

sales expand,

Exchange CommSn

to any of toe

...

proportion

France

consequences

S y,^7nTc^%

now

ment

capi^a^s®Jie? ^

inflationary

pelled -to pass on ,at least part of when the Federal budget will be
the increase in costs.
;

Week

Earm products

always

rather than

^et have been unusually heavy

October, 1956.
running ^iwut

TABLE III
Dec. 9

The last six months have been

From

managements were probably still much under the influence of the recession
when they
made
their
preliminary invest-

terprises had raised their planned
manned

eht^dna^%
b'ti"n

1958.

Most

stocks, and it 1955" the YointsarVey
by the com- rities and

United'ftat^than

%.2

betow

rather than

J 5-

not been altered

'nouj
coal miners have just negotiated tion to this.statement is the elec- probably be
trjc iight andpower.industry. The inventories

meeting;: increasing competition
from oil and -gas; but coal operators will find themselves com-

(especially

sufficient

111

than in

aperiod when thedemandsof the /and in 1859 will

over

1Q?7-

in^the.an-

'..to

food

won

cents

oC-

busiriess

1 y
of
ee and Company
Oc-; have won ^increase

components.:

16%, spread

from

vears

index except food and
reading and have received since
recreation were
higher-in Octo-" Coal produdion is

increases

The

have

larger

lines

about

XUl

?aUonal Settlements show bond
issues iwere
a

ments Of investment plans.

heginning to drive

market

Strongly to bonds

cycle, howeyer,-when many per- Government
sons aye beginning to wonder how
services
long the expansion will continue, o™»

In-

mo^tf^whkh tofunteS
i^chioiste

UCUldllU

ttat
mat

induce much
postponement
of
commitments. Late in a business

ex-

tough bargains, and as a result
therehasbeen a large eruption of
strikes,
have won. 'Xhe
on several. of

producing at the rate of about

and the Department of
Commerce

nvtiAvtn

stronger

economic

wage

Inflation

was

of creeping inflation. Figures
c0]iected by the Bank for Int'er-

revival wage increases are
likely to- stimulate business by
raising the total volume of spending since at this state .of the busiT*e?s cycle wage increases do not

exports/

stra^ht motoh
index

price
"°

in in

11.
of

ai*c«

Wages,. Union Reform, and
Unions

raise-thesp nlans?"

investment

1958,

from the consequences of
increases late in a boom.

via

Dec. 4, and

contracts

puuill

capital

United

business

American

Prices

the

plans reported in the McGraw-Hill survev
were
being made
the economy

ing

wa&e. increases early in revival
llkely to be quite different

been substantially less than in
any
country of Western Europe except Belgium, West Germany, and
Switzerland.
The United States
of exports

When

offerings of equiPublic issues in the Ameri-

ties.
,can

are

continues to have

* the

reduce

ness

of bonds to the

nas

CoiZittee haTbeen

The

ing the last 10 years the rise of
prices in the United States has

The index of sensitive prices has
changed little during the last
month. It was 87.0.
(1947-49=100)

wage

threat-

the

slowly

™ions

the

rapidly than prices
other countries. In
fact, dur-

cess

ill

union movement, but by
4-Vi
lno/1
rv-P
leaders of unions on
the defensive before their memrf

prices

will

though

—

pruvt raws jss«——™—* suMsaa&s
the trade
Pitting the

ward,' but there is no reason to
expect prices in the United States

ative to its

the

McCtellan

romnetitive

Undoubtedly,

States

rise

effect

"hfmost°cH{ficult
aimcult

deed, the United States needs to
increase its imports of
goods rel-

1
4

trade

irouoie

continue

The recent rise in the
demand for equities has not been
met by a shift from the
offerings

bonds

ne^otiated

totakeac-

fi,ronff

iong-run

the

have been ine most
nave Deen

United

The results of the McGraw-Hill

.•

stated and™thev~fail

world

to be

tor 01 a large cnain ,store, wno

seen

taXuntted
xw&gjns at
tionary influences
in

nas

CUrities.

m non-t„iceS.has

have

acurious eruption 0£ fears abroad

„oul;i

Unfortunately,

A/iiaiigco

were ginning to wonder how. long the

spent m

e^ecpn^eCs^ll|9Uo.be

increases late in the business
cyelo when many people are be-

iTl«59a0s'\hPersne™tinT9?8mAt dollar. These fears haveot been
tney
the
isoH.. At ^°;'ccrni'^g the stability

in .t»o»

-•

fairly large rise plans.

ireasury

private corporations
borrow at long-term.

run

ficient to offset

were

ness

selling long-term issues

expanding,

-unfavorable

Planned Capital Expenditures

economic

made

^induce much postponemen of
commitments.
Quite: different

and

raising

1
iyo8)

max.

has

inflationary

in the supply

of beef, but poultry
egg

stronger

^increases ^early lm revival

„

Committee

and

seqwices

will^jL

$15

billion -»larger
The
structure of production in the
economy of .1956 and "the
expected structure in the recovery
economy of 1959 are as follows:
"
J
tqsq

(billions)
Gross national product $419.2
Government purchases
_

<rf goods and eendces

80.3

(biufcwis)
$468.5
97.0

^^tPand ne"Vfor/
eign investment

Personal^^consumption
expen

—7

69.6

65.5

269.4

306.0

Continued

page

The Commercial and Financial Chronicle

(2722)

Continued from page
/

v •»

'l'.

■

But

The American

Recovery?

Sound Is the

How

;v .xill

Demand Coming

Challenge

Russian

•

■

V: /

modest results can be expected.
production in September and
:: Russia has announced plans to But imitation of the most
progres¬
October, the drop in personal in¬
raise real wages about, 40% in sive firms and the
come
in October, the failure of
pressure
of
business to plan an increase in the next seven years, to increase competition from the most pro¬
the output, of electric power, crude
capital expenditures in 1959 over
gressive firms is constantly
oil
and
cement:, by: more
than
spreading the best practices. The
1958, the uncertainties of mone¬
100%, : to double : the output of three most
promising ways of
tary
policy, and doubts about
meat, milk, and. dairy foods, and stepping up the rate of increase
automobile, sales
in
1959 have
to increase the output of steel by
in
caused
,

people to ask
is sound and
can*be expected to continue with¬

productivity are:

many

whether the recovery

One

may

Russians

the

interruption.

...

and October

the jgrnall 'd-ivop in

than
the
United States has been doing in
recent years. For example, in the
seven years 1950 to 1957, average
hourly compensation in non-agrithey

personal income in October. All
these results were mainly the

©f

automobile,

strikes in the
automotive parts,

agricultural

better

may

much

that

lieve

exposed

criticism

advance

Managements are not
to stocktaking and

possible.

further

would

desirable.

implement,

consequences

line

industries, and

Too many boards of directors are
merely yes men rather than in¬
and air cultural industry in the United
few others. States in real terms increased by dependent advisers of manage¬

Strikes have only temporary eco¬
nomic
effects.
Some
of
these

fall
far short of their fantastic goal of

strikes tend to stimulate recovery

raising real

inflationary

producing

increases.
in

ness

plans in response to increases in
orders is not abnorma 1—

new

there

was

similar

slowness

Of the several

pecting

ex¬

uninterrupted con¬
recovery,
five are

tinuation

for

reasons

low

States did

and

Further¬

1957.

items the increase
production
between
and 1957 compares favorably

more, on many

Russian

1950

son

record

the

States,

the

United

the following compari¬

of increases shows:
U.S.S.R.

U.S.

relative

278

—40

119

Millions of metric tons.Electric

Power—

Billions of kilowatt hours

Cements—

(3) Personal incomes, and hence

consumption expendi¬
tures, are being raised .by the
steady stream of wage increases
which will grow as the recovery
develops.
personal

Millions of metric tons—
Millions

meters

Woolen

Millions

—432

Fabrics—

meters

*113

—*84

Shoes—
of

Thousands

pairs

*'88,000 *65,847

Butter—

Thousands of metric

*219

tons

*10

*244

*196

Thousands of metric

tons

*1950

economy

helping to stimulate
by increasing the

size of the budget deficit.

trend

has

been

the

rise. ' In

for production to

five

1947

years

1952,. the total real product of the

The outlook is for a good
year—not as good as
1960 will be, but definitely better
than 1958. Sales in 1958 were held

economy increased 25:2%; in the
five years, 1952-1957, it increased

'(5)

automobile

down by a combination of circum¬
fact

(1) the recession; (2) the

that

the

taste

consumers

is shifting toward smaller, more
economical, and more comfortable
ears; and (3) the fact that most
of the industry was out of touch
with

give
In

the

market

consumers

1959

the

and

unable

what they wanted.

industry

whole

will still not be able to meet the

changing taste of

consumers

until

late in the year, but even in the

early months of
of small

cars

1959

the output

will be substantially

greater than it

matter

greater muscular exertion, but of
(a) the reduction of feather bed¬
ding, and (b) the development of
broader participation of workers
in

determining
technological
processes.
Experience shows that
workers

when

centive

have

strong in¬

contribute

better

technology, their contributions are
important, but only a small frac¬
tion of managements have made
real

effort

enlist

hearted

the

participation

whole-

em¬

been

made,

how

the

focus

rise

attention

productivity in
economy might be
thorough, non-polit¬
ical survey is needed of condi¬
tions affecting the productivity in
American industry. The most ap¬
the

American
a

propriate body to undertake this
important task is the well known
for

Devel¬

Economic

this

sales and purr
and it is the start
Also, as in the

tax

.have

past ' many, investors

ings

they

which

accounts

have

to disturb because

been reluctant

loss

actheir -sav-

interest

cumulated

income

with^

such

drawals may have entailed; These

was

in 1958.-

15.1%.

product

per

outside

the

first

period

real

manhour in industry
agriculture

increased

17.5%; in the second period. 1952
increased only 9.4%. Clearly the United States needs

to 1957, it

take stock of what

holding
back the increase in productivity
in the economy and to take
steps
to

accelerate

the

rise

produc¬

In the American economy,
of the output is pri¬
vately produced, the rate of in¬
crease in production depends
(1)

tivity.

where

;

(Special to The Financial Chronicle")

LOS

ANGELES, Cal.—Kenneth
has joined the
staff of Eastman Dillon, Union Se¬
curities
&
Co.,
3115
Wilshire
B.

McCubbins

Boulevard.:;

•

some

the

larger ones) do not
the successful results

achieve
from

their; newspaper, radio and
mail, is not only the ineffcctiveness
of
their Copy and
direct

their

appeals, but also because
a complete lack of planand
coordination between

there is

ning
their

advertising,
their
buying
departments, and their sales organization. Only too often somedreams up an

one

moment

idea at the last

and, two days before an

ad is to be run, copy
been

has
is

is hurriedly
circulars have not

togther,

put

prepared, and the sales force
The result

alerted.

been

not

wasted

effort and

time,

expense.
In smaller firms

be delegated

someone

should

to prepare advertis-

The sales organization securities .business.
Plan you?
encouraged to suggest
an<J
promotional
material ar°und these two ideas, plus the
and advertising. They should be willingness to give personal servalerted as to the plan of campaign lce to your clients no matter how
copy.
should be

the

for

they can feel a part of it. If
advertising produces requests

for

analyses
01*
reports,
they
be
prepared in advance

ready

salesmen

form
be

and,

letter

necessary,

for follow-up

should

supplied to them.

90%

the extent to which produc¬
capacity is utilized, and (2)
the efficiency of private industry.

upon

tive

During most of 1957 private
capacity was fairly well utilized,
though greater pressure from de¬

with Atlas

Securities, Inc.

preparation of goods ads, reading proof, and getting set to follow leads by mail, telephone and
personal
interview.
The
same
procedure should be followed in
of direct mail.

use

certainly

ber, Jackson & Curtis, 626 South
Spring Street.

there

are

many

counsel

is; almost '

has

been

added

:criminal

advertise

the

waste

only

Jay

your

and that you sell stocks and

bonds.

You

really,

sell

every-

stocks

-besides

and

bonds—you sell
Income; protection of capital against inflationary

the

purchasing

■

counsel);

valuable

income;

information;

tax

Dec,- 31; Lee F; a

Goldwater

limited partner in

L. J. Goldwater & Co.,; 25 Broadstreet, New York City, members
New York Stock Exchange,
the

same

date

Alexander ~L.

Berliner will retire from partner-

sjjip in the firm,

unawares

hazardous

such

many more

can

There

your

door

(Special to The Financial

LOS ANGELES,

Chronicle)

Calif.—Barbara

J. Benesch and Richard E.
have

become

Hefner

affiliated with Hill

Richards & Co., 621 South

Spring

of the Pacific
today Coast Stock Exchange.
Miss

advertise that will

people to

...

Two With Hill Richards

free

appreciation;

capital

activities.

bring

On.

will become

of mind and

peace

guidance for those who would be
caught

L. J. Goldwater to Admit
•

of the dollar; tax help (but

besides your name and that
Roberts & Co.,
Third National Bank Building.
' handle securities.
of

; /

....

Bache & Co.'s. Philadelphia office is located, at „ 15.10., Chestnut
Street. Associate Manager is Harry
Gerken and Assistant Manageiy;
.

individual in¬
good
today that it

much you

SPRINGFIELD, Mass.—Peter A.
Christie
staff

that want and need

beneficial

(Special to The Financial Chronicle)

run

of advertising is at best only a Joseph Fassler., The main office
of the firm is at 36 Wall Street,
negative : approach
to
business.
"
'• :•
The field of service is so broad, New York;

speculations and

.With Jay C. Roberts

Other appointments made at this
time are: Clayton Stout, who -will
be Assistant to the Resident Partner;
John Groves, Back Office
Manager and William Brown,
Cashier.

better to

signature ad that keeps your firm
name in front of your public than
it is not to advertise. But this type

not

LOS ANGELES, Calif. —Frank
W. Biggs is now with Paine, Web¬

pointment of Steven C. Kraus as
Manager of the Philadelphia
branch office of Bache & 'Co.,

Throughout the year advertising members of the New York Stock
be planned at least three Exchange is announced by. John
weeks ahead, thus giving time for E. Fricke, Resident Partner,

power

(Special to The Financial Chronicle)

PHILADELPHIA, Pa.—The ap-

should

depreciation

With Paine, Webber

Pkila

ArEr»rki«t«

Cache Appoints in riMcU

all

thing; else

Seventh Street.

Ra/.L~

go.
Prospect
cards
set for distribution

should

Franklin

215 West
He was formerly

s^r?a}1 or k°w large and I doirt
think you will regret it.

should

name

Company,

isGrotuifr,.The capital gains tax
(another political monstrosity) is
freezing the supply ' of many
stocks and the demand is increasing'. It is not a healthy situation
but-next year should bring more
and more new issues of common
stocks that may tend to ease "this
tight supply-demand situation in
common stocks.
Meanwhile, the
public reads every day of the
dangers of inflation,. and more
people are learning that a shrinking dollar is no longer a academic
subject. It is stark reality and
they want ■ to at least protect
themselves if they can. They will
talk to yoiu about good growth
stocks and they will buy. 1959
should be one of the best years
we
sJen, ye* inTJ; e retai1

ing

ideas

LOS ANGELES, Calif .—Bernard
J. Funk is now with Samuel B.
&

money

(Special to The Financial Chronicle)

a-salesman, customer's

New

investment
.

not you are

representative,*, or a partner in a
ffjrm . with large-and important
clients, there is one thing that is :
in your favor now.- People are
willingvahdl able, to buy securities*
interest rates on savings accounts
are aimost:-hoi worth; the bother

start, is the reason why so many
individuals are more receptive to

vestors

Joins Samuel B. Franklin

the/ psychological to ariy/investor with a gross tax-^.'
Year and a new able iricome/ of'-'$10,000 and up- ;
wards.; TaxXoxempt bonds paying 5
3-%%^-ieave - a full 31/2 % in the :
investment suggestions and plan- hands of the investor and the tax
ning. Hence, a sensible approach collector* gets none of it.i People
by investment salesmen
meets are beginning -to find' this out. The
with more favor,
:
•
sales of* tax exempts to individual
investors is growing rapidly. More
i
Plan Your Advertising
and more people, will come to you
if you teli them this story.
so
The
reason
many
.
]
why
7 The other side of the sales story
firms: (and
smaller
investment
effect of

Joins Eastman Dillon

an' aggressive sales campaign
coming^ yeari. ^Whether, your ;
firm is large or small, whether or

plus

factors,

the

opment.

for;

Year.

New

order

stances:

Year-end

chases effected,
of

compared to 195G.

s(4) The government is com¬
Of considerable importance is
pelled by law to buy increasing
quantities of farm products, the fact that the rate of increase
thereby
increasing
the
budget in production and productivity in
deficit.
In
the
long-run,
the the United States in the last few
agricultural p rice support pro- years has been slowing up—in
-;gram is wasteful, but in 1958 the spite of the fact that the long-run
the

it.

/program was

not

Committee

Margarine—
;

This

accelerated,

Woven Cotton Fabrics—

Woven

labor.

Millions of metric tons-

The purchase of goods by
local, state, and national governpients is steadily increasing.

(3) Increasing the efficiency of

ployees.

Steel-

(2)

ment.

327

Crude Oil—

orders.

new

1950

still do

and

years

Millions ol metric tons.—

(1) The economy at the end of
November was barely producing
es much as it was consuming and
were

capita income by

Coal—

particularly important;

inventories

seven

between

with

in 1954.

response

40%

per

better than the United

investment

its

raising

wage

of busi¬

slowness

The

might

Russians

The

22.8%.

lack

inventories have

their investment progress or

'V (l) The further development of of/.the

doubt the ability of
technological research. Specialized
to carry out this
technological research has been
ambitious
plan.
The
indicated
The achievement of the best
booming, especially in the last 15
possible recovery requires well gains in production are far greater years.
But
even
today,
it
is
than
countries with larger re¬
designed and administered eco¬
largely concentrated in a limited
nomic policies. The recovery will sources have been able to achieve. number of industries. In view of
States the
be mildly impeded by the fact Nevertheless,: the. United
strong demand for consumer
that the Administration attaches would be unwise to view the Rus¬
goods, the American economy is
too much importance to the sta¬ sian plans with complacency. Rus¬
particularly in need of inventions
sia is obviously stepping up her
bility of prices and too little to
that raise
output per manhour
efforts,
and
the irethe encouragement of production, economic
while increasing by only a small
sources that she has available to
Nevertheless, the forces of expan¬
extent the capital needs of the
sion are so powerful that the re¬ increase her productive capacity
economy.
are
greater than ever.
Further¬
covery will proceed in the face
(2) Improvements in the art of
more,
her political capacity to
of obstacles.
management. The quality of man¬
Little additional
stimulus can divert resources into capital for¬
agement is important because it
be expected from housing con¬ mation far exceed the capacity of
affects
the
quality of decisions
struction, which has already democratic countries. No capital¬
and the efficiency of all of the
reached an extraordinarily high ist country has ever exploited its
factors of production.
Important
rate.
There is, however, no rea¬ people on the scale that the Rus¬
advances in the art of management
son to be disturbed by
the drop sians are doing.
have been made in the last 50
Even if the Russians fall far
in the rate of increase in indus¬
trial
production in
September short of achieving their goals, years, but there is reason to be¬
out

Meet the

rise in industrial 'f'.
fr:";v':' Production?

The very slow

- -

Can the United States

•; .7

v;;.

5 '>*>

By JOHN DUTTDtf :
increasing the efficiency of pri¬
vate industry in an economy with
millions of independent decision i l l
January Investment
Up :
r
centers, such as the economy of
the United States, is a matter of
January traditionally is a good Go for "Growth*! and <Tax Free"
influence and education.
Hence, time for the investment business. Income in 1959... 7.1: ;V%," >
for a limited time at least, only
People have been taking stock of r The situation-is made to- order

of 1959

Securities SalesmmtfsGorner

.,:.

Fyciy*-;, •',*

American economy is to increase
the efficiency of private industry,

On the

Thursday, December 25,1958

re¬

more output — as well
slightly faster rise in prices.
the
main
problem in the

sulted in

•

undoubtedly

mand would have
,

...

you

Street,

members

Benesch was previously with
Paine, Webber, Jackson &

Curtis.

.Volume 188

Number 5806

The Commercial and Financial Chronicle

(2723)
and Casimir A.

Wanted: Good Business Men!
"While

some

sia's apparent
been beating

ruble

war.

ager

"The Russians have been
going into underde; ;vf- * *:
veloped countries and have been

countries we're

^ abput> do

need

not

LOS

party

talking

crness as well as

■Si. :SMyler£

accepted. P think

Henry Ford, II

77'

will be

so we

Mr. Ford has

for

The Economic

balance

our

/»

also

and

the

tional

Mark

Deficit Financing

vr.

fiscal

t?.r°1Ug?
to

importance to all Americans.
"Unless prospective expenditures

stren gthen
confidence
at

home
abroad

future
of

the

ceipts under current tax rates will

value

produce

dollar,

cal

Bankers Assoi

t i

o n

solution

easy

be-;

lieves.

Co.

has

been

formed
to

engage in a securities business,
Marie N. DiGiacomo and James

budget problem. The tax burden
is
already. heavy, and we
know from past experience how
hard it is to curb governmental
expenditures.

American
c

O. Vance
-

are

partners,

Strand Inv. Co. Formed
_

the

area's

manufacturing,"

„

^Trr.„

are

Chemicals are
fastest growing

one

in¬
dustries—a dozen major and
many
smaller plants
representing a halfbillion

dollar

stand where

investment,

now

only two plants

in operation in 1945.

were

Steel capac¬

ity has been increasing at a much
faster pace than for the U.
S., and
the

area

also

Population

ROCK, N. J.—Prevision

Investment

our

the..

second

becoming

the

production

automotive parts and accessories.

with offices at 116 Rock Road

"There

icy Commis¬

GLEN

balanced budget in fis-

1960.

manufactured.

prominent

Form Prevision Inv.

the

Economic Pol-:
sion

1959,

and

Director.

liece«- lem
*be ffderal budget is there- activities with emphasis on obincrease(i taxes, is fore a matter ot immediate and taining outstanding speakers in
vital

essential

ranks

There is no
heavy concentration
Millar, of in any single
industry—over 2,000
Co., was products of various kinds

bers and pi.omiSed a continuation,
Gf +be Bond Club's hieh level of

^fd.ifXpeilditlireS bui
*

Davids

Outgoing President, Warren H.
Crowell, of Crowell, Weedon &
Co., reviewed the past year's ac¬
tivities, after which Presidcntelect Davids addressed the mem-

to keep our national
finances under control. The prob-

1960, preferably through,re-

Staats

400 laboratories.

over

now

en¬

elected

federal budget, in termination

Richard
R.

Ohio;

illuminating

compared with fourth position 10
years ago, and the state uses more
electric
power
than any other.

Bank,

William

and for

"value added
by

elected

was

The region-is

research center for the air¬

gineers, with
;

Secu¬

rity-First Na¬

dustries

Stockbridge,
of

section

craft, chemical and petroleum in¬

Franklin

This

fied establishments,

Di-

Secretary;

Policy Commission of ABA demands prompt,
spending reduction or increased taxes—
budget during good level of economic activity.

,1,700 J square
Ohio, extend¬
along the south

years

construction

1959-63,

which will

about
generated

internally., Financing is likely, to
be only
debt, in view of the high
equity ratio, f" ] '^ J.
^
;
Vice-President F, Warren Brooks
in

parts, machinery,

was
a

realistic action—via
to

and

itr fioftheast

60%

five

chemicals, paints; petroleum re¬ pompany.'s conservative financial
fining and various other diversi¬ policies are reflected in a depre¬

Hill

Co.,

elected

area covers

the

Richards
&

and-near

$200 million

over

popula¬ in

in.

service

counties
.

Illuminating Company

recent- addressv' before
the
highly industrialized; Activities
including iron and: steel, trucks, New York Society -of- Security
Analysts r pointed: qut: that the
a u t o m o bile

Leo Ba-

Director;

1,878,000

Treasurer and

Bankers' Group Warns

four

coming

rector

businessman's

good businessmen as much as (often much
than) capital. He is right, ..1i'"':'77"7::

electricity. to

of '

Cleveland; the

Co.,

By OWEN ELY

Illuminating

ing 100 lhiles
shore of Lake Erie.

bich,

that many of these
V

of The

year.

•

practical ideas, and is convinced
"undeveloped" countries need

and
Christmas
Bond Club of Los

elected

'■the

we are

meeting

President

making
great progress."—Henry Ford II.

;

tion

the

miles

was

auspices—busigovernment). We 7.
learn ; to work V

around the: world

supplies

ANGELES, Calif.—At

Ryons-&

chemical company, for
example,
a/; might be tried as a pilot project
(under American

Cleveland Electric

Angeles, Mark Davids, of-Lester;

autos.

Utility Securities

Cleveland Electric

Elects Officers

;

annual

Public

Los Angeles Bond Club

into them.

way

in charge.

buying their

Sienkiewicz, Pres¬

ident, Central-Penn National Bank
Philadelphia; and E. Sherman
Adams, American Bankers Asso¬
ciation, New York, Deputy Man¬
of

people Have been bemused by Rus¬
change o£ heart, the Russians have
this ncmmtry in what I call the

growth

area

for the

country as a whole.
Future opening of the St. Law¬
rence Seaway next
year is another
plus factor; this will give Cleve¬
land

access to iron ore in Labra¬
dor and
overseas, and will cheapen

reserve

electric

27%

low

utilities;

50%, and

plant,

debt ratio be+
dividend payout

ratio of about 60%.

expected

ditionally

The company
its tra¬

continue

conservative

dividend

policy.
The company's record of share
earnings showed some irregularity
and not much net
gain in the pe¬

riod

1946-52, but since the latter
earnings have increased from
$1.73 to $2.64 in 1957. While the
year

company lost some ground in the
first three quarters of
1958, due
to

its

large proportion of indus¬

trial business and the

sharp

pro¬

duction dip in the Cleveland
area*
nevertheless earnings for the cal¬
endar

year

expected

are

fairly close to last year's.
The outlook for next
year
is
enhanced by the rate increase re¬

cently
vide

the

is also outstripping the U. S.—
northeast Ohio is expected to
gain
30% in the decade 1950-1960 vs.

18%

ciation

compared with 19% for nearly all

received

which

will

pro¬

$2.5 million additional
(about 18 cents
and about $3 million

some

revenue next year
a

share)
in

1960.

return

been

about

The

average rate
past decade has
6%% and the new

the

rate increases are expected to re¬
store the return to this level. No
further
rate
increases
will
bo
sought until 1961 or later (the

SALT LAKE CITY, Utah — exports due to lower transporta¬ new rate ordnance expires Sept.
21, 1960).
>
Strand Investment Co. has been tion costs.
;
"ominous pos¬
or
Cleveland Electric
unwilling to hold expenditures formed withr Offices at 16 ExThe
Illuminating
company's
revenues
Jesse W." Tapp
are
sibility" that
down to the level of realistically change Place to engage in a secusells on the New York Stock Ex¬
about 97% electric and 3%
the governsteam;
estimated revenues for fiscal 1960, cities business. Officers are Elmer
change around 51 and pays $1.60.
of the electric revenues
33% are
ment may continue to operate in
then revenues should be increased E. Strand, President;
Max P.
residential, 45% are large com¬
the red during fiscal 1960 even if to cover
expenditures
in other Erickson,
Penn. Estate Planning
Vice-President; and mercial and
industrial, 13% small
production and employment reach words,
taxes should be raised. Kenneth A. Ohlson, Secretary and commercial and
"If,

Citing the

however,

Administra-

the

tion and the Congress are unable

•

—

high

levels,

clared

sensible

the

commission

statement,

decisions

are

de-

arrived

out of control."
Assumine
Assuming
nomic

a
a

level
level

of
or

be
oe

excuse for
xor

ning to continue deficit
the eommission said

substantial-budgetaiy

sur-

plus and reduction of the public
debt "it
do

said; l\TheJeast

to attain

must

decide

not be

where

easy

for

taxes

Not

Fetish

■*

lYht'do

general,

not

; •

Test

reveal

nation

are

capable of performing the arduous
task of

putting

r«

idential
vnvr

C. — VIM,

incorporated has been formed with

* in ihfx pornoflini RniMW
?,Jlce& 111 Hie PeiPetuai .Building
engage in a securities business,
nffieers

are

T ennard

Vni?ei

The

and

outlook

development of

business

seems

res¬

excellent.

PHILADELPHIA, Pa. — Penn¬
sylvania Estate Planning Corp. is
engaging in a securities business

from

offices

food

freezers

Pros-

and

fourth

David

dryers
and
12%
for
heaters.
Nearly three-quarters of the

model

•

Hirshon, Roth Admits
Hirshon, Roth and Co., 30 Broad
Street, New York City, members
of'the New York Stock Exchange,
Gn

f'This is not just another budgr in order. This will be an exactetary crisis, dXoti is dt.m^matier of: ing test for American democracy."
making a fetish of a balanced
Jesse W. Tapp, chairman of the
budget; Ourrfiscal situation' has board of the " Bank of America

1528

Walnut

Sillia, Executive Vice*

™

Jan. 1 will admit Etta Roth to

limited partnership. On the same
Eva
B.
Ungerleider and

financial house date

our

Despite competition from gas, the Street.
Officers
are
Aaron
S.
area ranked first
recently in the
Frank, President; George H. Revsales of ranges and dryers
(per
1,000 electric customers),
third ness, Secretary - Treasurer; and

j.denH and Edmund H. Feldman,
Secretary-Treasurer,

Onens

nffi

■

months ahead will
or

miscellaneous.

increases in
water
^ei® aiJ?
heaters.
' £?es
Present
satura¬ President.
leveis, mcieases 111 K]ent; Dr. F. M. °™a a
Henry, Vice-Pres- tion is 29% for
ranges, 21% for

H
seems plain that
any tax increase
today should be broadly based.

"The

Inc

WASHINGTON, D.

levels

unmntfurfive^nd
than go^

whether

With

hish

Sl],,h

we^shoqld; -budget.,
An Exacting
be a Slgn"

VIM

re-

?f taxes must be r

balanced

irresponsiDuity.

5?
ueciae wnere wgu iur
additional revenues.

•

ot tiscai

deficit

waowtmAvw*
fixes

to, it will

matter

•

"At such a time,, indeed, sound
fiscal policy would call for achieving

hieher

SOrted

Tsluri- '
pran

spending,

«Tf

ecoeco

activity during that period,

there woia
inere wold

continued

for continued

spending.

eood
gooa

sequences

the bubget threatens to get

soon,

industrial,

Treasurer,

This, of course, would be painful,
but far less painful than the con-

"Unless

homes

new

LOS ANGELES, Calif.—Harold
1,5Q0 T. Andersen has been added to the

ments feature electric kitchen and

laundry
homes
over

ago.

appliances.

are now

twice
•

;

heated

many as

The company
in

Over

has

electrically,
three

•'

•

years
:

a good record

developing operating efficien¬

Ungerleider, limited part- cies. It now serves 37% more cus¬
will withdraw from the firm, tomers than 10 years ago. with
18% fewer, employees. The con¬
W
tinuing addition of new generat¬
y
«
.
v f
.f
now become a,serious
inflationary n.T. & S.A., Lbs Angeles, is chairJohn Kaplan to Admit ing equipment has reduced the
threat to our economy.
Prompt man of-the Economic Policy ComOn Jan. 1 Barry S, Cohen will system heat rate to about 10,700
action is needed to strengthen con- mission.
Its other members are: become a
limited partner in John BTU, nearly 30% below the figure
120 Broadway, 10 years ago.
Further economies
members of the are promised when the new 250,000
kwl unit goes • into* service
Exchange.
spending by the United States^ man President, Merchants National
/
soon, and the "supercritical" unit
would set a poor example, indeed Bank of
Boston; Sidney B. Congof similar size at Avon scheduled
p tf
for other nations wiiose economic
r-don, Chairman of board, National
"• * rorZneimer ranner, for completion in 1959.
stability is of important eonceni-City Bank of Cleveland; William
J. William : Small wood, Jr. on
A decade ago some two-thirds
to. us.
It would, militate, against A.
Lyon, President, Dry Doek Sav- Jan. 1 will become a partner in of the coal for fuel came, from
our afforts
to-promote-the eco- ings Bank, New York; Adrian M. Carl II. Pforzheimer &
West Virginia, t>ut. now over 80%
Co., 25
nomic strength of the Free World. Massie, Chairman of
board; New Broad Street, New York City, is from Ohio mines, and increas¬
) "For. these reasons,. we cannot York Trust Company; William A. members of the New York Stock
ing use of nearby coal will con¬
afford simply to drift along hoping
McDonnell, Chairman, First Na- Exchange.
tinue. This trend has helped offset
that some day, perhaps in 1961 or tioilal Bank in St.
Louis; Frederic
"
V" ' 'r *
''
'
*
higher rail freight costs and the
1962, federal revenues will catch A. Potts, President, Philadelphia
company is now receiving about
Two With Copley Co.
up with
expenditures.
No
one" National
Bank; Herbert V. Prochone-quarter of its coal by truck
thing would do more toward pre- now, Vice-President,
("Special to Tire Financial Chronicle)
First Naat substantial savings over cur¬
venting inflation, restoring con- tional Bank of Chicago; David
COLORADO SPRINGS, Colo.rent rail rates. Production cost per
fidence in the dollar, and setting a
Rockefeller, Vice - Chairman, The $ Louis A. Barella and Leslie A. kwh is about 16% lower than a
good example, for other nations, Chase
Manhattan
B a n k,- New Brand have joined the staff of decade- ago. Most rate schedules
than for
the- United
States-to York; John A. Sibley, Chairman
Copley & Company, Independence have fuel adjustment clauses. - • r
demonstrate right now its firm de- of
board, Trust Company; Atlanta; Building.
The company expects to spend
selma

Glore, Evans Adds
(Special to The Financial Chronicle)

develop¬

staff of

Glore, Evans & Co., L168

Santa Monica Boulevard. Mr. And¬
ersen was

previously with H. Cai>

roll & Co. and Sterling Securities

Co.

•

•" ' :

ners,

AREA RESOURCES BOOK

#,J

New book

explains why
the

area we

serve

offers

much

•

opportunity
to

industry.

Write for F«F COPY

UTAH

POWER

Box 899, D«pt. K

Salt lake

Cify 10, Utah

Sorviog in
•

UtaMdoho

Colorado-Wyoming
i

The Commercial and Financial

Chronicle

...

Thursday, December 25, 1958

(2724)

Continued

from

Gregory & Sons Will
Gregory & Sons, 72

Exchange,

Stock

York

New

Wall Street,
of the

City, members

James C. Sheils

Jan. 1 will admit

partnership.

Ira Haupt

& Co. to
as

Partner

Haupt & Co., Ill Broadway,

members of the

York City,

New

Exchange,

Stock

York

New

Jan. 1 will admit

Samuel Fink to

partnership. Mr. Fink is Manager
of

34-month

was

Industry

$437,000,000,000, against
of the effect of the recession

about

only

production

ment.

Dec.

20, ,1958

output

increased

1,307,000,000 kwh. above that of the Week ended Dec. 22,
Car

by
-

1956.

Loadings Declined <K9% Below Preceding Week

'Loadings of revenue'freight in the week ended Dec. 13, 1958

5,629 cars or 0.9% below the preceding week.
the week ended Dec. 13, 1958 totaled 588,347

were

Studebaker-Packard Corp. work this Friday by Gen¬
eral Motors and Ford following the Christmas holiday, with most j
plants also working Saturday, that is the auto industry's bright
"wrap-up" of its 1958 operations, "Ward's Automotive Reports"
stated on Friday last.
high for

Loadings for

of .14,293 cars,\or 2.4% .under the corresponding
a decrease oft 127,805 cars, or 17.8% below the
corresponding week in 1956. 4
'•>, '

cars, a decrease
1957 week, and

44 r*;
Output Slipped 5% Last Week Jby Strikes

>.<"sV'Y.(l

Car and Truck

Marring the picture are strikes and labor problems which
affecting assembly of Chrysler Corp. and American Motors
Corp. passenger cars plus Ford and International Harvester

At Several Plants

are

.Passenger car production for the week

industry production

production standstill last week by labor
nationwide Chrysler Corp. car assembly, with
Motors Corp. seriously pinched by the Pittsburgh Plate

Glass strike which started

Oct. 6.

Elsewhere, "Ward's" added, "contract problems" idled International Harvester truck building for the fifth straight week, a
10,000 production units, and Ford truck output early the
past week began to show effects of the Gemmer steering gear

loss of

with

Last week's

baker-Packard

December
34-month

Christmas Holiday Week Set at
68.2% of Ingot Capacity

buyers

week and

can

that

spring and

Extras

face

„

were

13.8%

critical labor negotiations

■

Production was 4.4% above; shipments 0.7% below and
were 16.3% above the previous week and 26.0% above

orders

new

the like week in 1957.

Unfilled orders amounted to 34%

above production.

they

some

4
•

be reasonably sure of firm prices for the vx f of stocks.

steelmakers

the Week

; /Dec. 13, 3958 were 3.3% below p'rodiiction, according to the "Na¬
tional Lumber Trade Barometer." In the same period new orders

: ^

Failures'Recorded Moderate Declines in

Business

Latest Week

products may be revised before July, since

be out of line, but sweeping adjustments of the kind
made early in 1957 are not likely.
Extras are charges made, in
addition to base prices, for such things as qualities, sizes and
quantities.
they

Lumber Shipments Fell 3.3% Bel^w Output in
Ended Dec: 13, 1958

are well aware that raising prices would
undermine their efforts to reach a non-inflationary settlement.-

the

22,624 a year ago."^

.Lumber shipments of 466 reporting,mills in the week ended

months, "Steel" magazine reported on Monday last,

notes

Studehigh of

Steel Output in

next six

output dropped under that of the previous
,

nearly 14,000 cars.

Steel

car

week
by 5,978 units, while truck output declined by 2,097
vehicles during the \veek.j4lri' the/corresponding* week last year
340,447 cars and 22,624; trucks weretassembled;
' ■ v
i Last week the agency reported there were 20,745 trucks made
in the United States. This compared with 22,842 in the previous

2,000-unit output decline.

reporting service estimated entire
Corp. output will soar to a

The

The past week's

states "Ward's."

running its Dec. 1 to 20 losses to 35,000 cars.

strike

in the previous week.

(revised)

337,882

production total of cars and trucks amounted to 152,649 units, or a
decrease of 8,075 units below that of the previous week's output,

said Chrysler's labor unrest has held
of industry car output in December thus far,

mere

with

statistical agency

The

production halts at Chrysler Corp. and American Motors Corp;
plants, in addition to Ford* and International Harvester trucks,
resulting in a production slip of 5% the past week.
Last week's car output totaled 131,904 units and compared

were

American

to slip 5%

virtual

Forced

problems

ended Dec. 19, 1958,

according to "Ward's Automotive Reports," was cut by strikes and

the past week.
"Ward's" counted 152,649 car and truck completions for last
week compared with 160,724 the week before. The same week in
1957, marked by complete labor peace, netted 163,071 vehicles.

trucks, causing

statistical depart¬

firm's

the

1958

year

$440,000,000,000 for 1957, because
during the first half of 1958.

ended

week

the

'84,000,000 kwh. above that «f the previous week by 1,122,000,000
kwh. above that of the comparable 1957 week and by

in December and widespread return to

Admit Fink
Ira

full

the

in the *

week enaed Dec.

The State oi Trade and
for

The previous all-time high was reported
13, 1958 at 13,450,000,000 kwh.

record.

high

For

Admit Sheils to Firm
New York

page

may

Commercial and industrial failures dipped to 2.51 in the week
f ended Dec. 18 from 267 in the. prior week, Dun & Bradstreet, Inc.,
A

Mills, it continued, are not likely to raise extras because
they are in reasonably good balance. Further, market conditions \
are
not favorable and more business would be lost to foreign

7 reports. The level was down moderately from the. 276 of the
comparable period a year ago, but a noticeable increase prevailed
over the 214 of 1956. Casualties were fractionally higher than the
249 of prewar 1939.
*
■"
V,
Liabilities of $5,000 or^moreiwere involved in. 231 of the
'

competitors.
Costs are not rising as fast as they were and profits
are improving.
Finally, aluminum producers, strongly competitive
with steel in some markets, have assured their customers of firm

prices until July.

" ";

.* week's casualties, compared
•

declined to 20 in the latest .week-, from

"•* ;•■'*./

with 229rtin the preceding week and

in the similar i 1957, period.Small

242

^failures, under $5,000,

3# a;week earlier and were

"t below the 34 of a ^ear fagb?^
failing concerns •
basic steel producers allays fears of a
: had liabilities in excess of $10p,0p0/as iagaihst 23 in the prior week.
boost in extras expressed last fall by structural fabricators-and
Retail failuresIdroppedfto 1113irom'U22 in the prior week,
purchasing agents.
manufacturing to 47.from-54 and wholesaling to 30 from 32, while
Steelmaking operations last week jumped another half point "
/ the toll in commercial* service rose to 22 from 19 and in construcr
to 76% of capacity, the highest mark of the year. Production was'./
tion to 41 from 40. Oiijy 'ah;':|wh$esaling jiyere. 'there more failures
about 2,057,000 net tons of steel. Chicago district mills operated
•'
than a year ago." /The /most 'noticeable^decline from last year
their furnaces at' 87% of capacity, the highest rate in 18 months. >:
occurred among retailerS 'and;.! casualties' amorig manufacturers
Other districts follow:
were unchanged frcm a year ago.;:* y ^
; "*/'/- - '
4!
St. Louis at 94% of capacity, up 10.5 points; Detroit at 91.5,, .
This "Steel" survey of

•

Geographically,failure 'declines fromtpe prior week occurred
Middle /Atlantic casualties fell to 89'
4
from 97, South Atlantic/to ;23 from Cdpy Pacific to 60 from 68,.
points; Pittsburgh at 72.5, up 0.5 point; Eastern district at 72; up As?
West North Central ;to>2 frbm^7,VEast South Central to 6; from: 7,*
point; Birmingham at 67, up 2 points; Buffalo at 66, down 2.5
and Mountain StatesV- to ? l'lfrbm. 2. >;Increases prevailed in the.
points and Youngstown at 62, up 2 points.
/•"
other three regions,^includihg |the .VWest 2 South Central States
Steelmen are viewing 1959 output with greater, optimism.
'
where the total rose' to" 22-:from^3:"-iTrehds/i'rom a year ago were
Avery C. Adams, Chairman and President of Jones & Laughlin
-mixed; casualties were heavier/in four 'regions, while the other
Steel Corp., Pittsburgh, sees industry operations in 1959 for the
: five reported declines. The most noticeable year-to-year decrease*
first quarter at 80% of capacity; the second, 91; third, 68 and.occurred in the Pacific / States/* wlnle - the West South Central
fourth, 78%. Production will average 79% of capacity over the V
;States reported the shafpest4fisef:fr6nicl957.;; C
.*.
year and output will be 115,000,000 ingot tons, he believes.
Respondents of a "Steel" survey sent to 7,500 plant managers
Wholesale Food Price Index Edged Lower for Third Week
indicate that 46% of metalworking plants produce for export. Top
In a Row
export items include: industrial, electrical, construction and min¬
The wholesale food price index, compiled by Dun & Brading machinery; iron and steel products and autos.
Nonferrous metal sales which fizzled out in the early part of
street, Inc. dipped last week, for the third consecutive week-toweek decline, but it fractionally exceeded the level of a year ago.
1958 will close out the year with a bang. Reports indicate Decem¬
The index decreased 0.3% on Dec-. 16 to $6.36 from $6.38 a week
ber shipments will approach the October and November levels,
earlier. It exceeded the $6.33 of the comparable date last year
even allowing for the holiday slowdown.
"Steel's" price composite on the prime grade of steelmaking
by 0.5%.
'
Commodities quoted higher in wholesale cost the past week
scrap held last week at $39.17 a gross ton and some observers are
of the opinion that the slump has hit bottom.
were wheat, rye, barley, butter, eggs and hogs..
Lower in price
•'
..
were
flour, corn, oats, beef, hams, bellies, lard, cottonseed oil,
The American Iron and Steel Institute announced that the
points; Wheeling at 84, up 0.5 point; Cincinnati at 84, up %
points; Western district at 79, no change; Cleveland at 75, up 6 ~v

down 8

•

six of the nine regions.

Are you
have
a

really too busy to

health checkup once

year? Or do you put it off

because
doctor

you're afraid your

might find some¬

thing wrong?

•

If if s cancer

you're worried

•

about, remember that doc¬
tors are
cancers

curing many more
than they could ten

years ago.
cans are

800,000 Ameri¬

alive today, cured

of cancer. ..many of them

000 tons

duction

annual

cocoa

of steel companies will average

of capacity, and

2,011,000 tons

week ago.

rate

was

*123.8% and

Wholesale

felt

them because

. . .

all of

Make annual checkups

habit...for life!

A
ye

AMERICAN CANCER SOCIETY

Electric Output Registered a New
Last Week

All-time High Record

The amount of electric energy distributed by the electric light
and power industry for the week ended Saturday, Dec. 20, 1958
was
estimated at 13,534,000,000 kwh., according to the Edison

Electric Institute.

Output the past week recorded a new all-time

grains, livestock, flour, lard, cotton and rubber. The index on,

the
-

time!

price level fell for the fourth consecu¬

in the latest period, hitting a new low for 1958. The Dun
daily wholesale commodity price index fell to 274.70
Dec. 15 from 275.41 a week earlier, reflecting price decreases-

•

...

they went

to their doctors In

& Bradstreet

production is based on average weekly production

for 1947-1949.

tive .week

checkups no matter how
well they

total of the price per pound

of food prices at the wholesale

Commodity Price Index Touched New

The general commodity

pro¬

A year ago the actual weekly production
placed at 1,366,000 tons or 85.0%.

*Index of

sum.

1958 Low Mark Last Week

duction 1,988,000 tons.
was

represents the

foodstuffs and meats in general use and its chief func¬

level.

before.

For the like week a month ago the

index

raw

tion is to show the general trend

1958 is equal to about
68.2% of the utilization of the Jan. 1, 1958 annual capacity; of '
140,742,570 net tons compared with actual production of 74.5% the
week

and steers.

The

of 31

Output for the week beginning Dec. 22,

because they had made a
habit of having

*114.5% of steel
equivalent to 1,840,of ingot and steel castings (based on average weekly pro¬
for 1947-49) as compared with an actual rate of *125.2%

operating rate

capacity for the week beginning Dec. 22, 1958,

comparable date

occurred

There

a year ago was

was

moderate dip

and both domestic and export

ketings,

trading.

277.85. The previous 1958 low

Oct. 28, when the index stood at

corn

275.01.

in wheat prices during the week

bussing lagged. Reflecting light mar¬

prices remained close ta the prior week, in moderate

Prices on rye and oats dipped somewhat as

slackened.

Contrary to'the trend on other

purchases

grains/soybean prices

moved

slightly,

market.;

bolstered

further

strength

the

meal

The Case

An increase in flour
supplies prompted a moderate decline
in prices the past week and
trading held close to that of the prior

week.;Cocoa buying slackened

•

at the end of the
period., Prices,
somewhat below the level of a
week earlier.
Although
coffee transactions
picked up at the end of the

tinued to decline and

ended the week

The buying of sugar at
the week and
prices moved
ciable

con¬

expanded during
There was an appre¬

slightly higher.

those
"

Cattle receipts at
Chicago moved up noticeably from the prior
and fractionally exceeded
those of a .year ago.

steers

Trading in

was-steady; but prices declined
moderately, transactions lagged

eased

bit.

Although hog receipts

lard

fell

moderately during the week.
v.
Lagging exports and tbe expectation of increased
surplus
plies resulted in a moderate decline in cotton
trading a week

■Prices

were

-York

down fractionally from

Cotton

Exchange.

week

earlier

the

wonde?

realize

sup¬

new

ago.

are

New

how

have

with

New York

sets,

reports

from

the prior

indicate

that

the

week

sales

matched

Year Ago

country

those

passenger

the

cars

While volume in hi-fi

phonographs, television

sets

was up

appreciably from a year ago, interest
major appliances declined somewhat. Total furni¬

were

up slightly over the similar week a
year ago, but
below the expectations of most
retailers.
The usual seasonal rise in
food buying occurred
during the
week and sales were
slightly higher than a year ago. Best-sellers
were
canned goods, candy,
nuts, frozen ..foods and some
were

dairy

products.
A

last-minute rush in re-orders for women's
handbags, gloves
and jewelry occurred the
past week as retailers sought to
replenish
depleted stocks.
Bookings in women's* Spring suits, coats and
dresses were sustained at the levels of the
prior week and volume
matched that of a year ago.
Further increases occurred -in the
buying of men's Spring suits and sportswear.
Slight year-to-year
gains were reported. Interest in children's
merchandise at whole¬
sale was unchanged from a week
earlier.
The

recent

upsurge

retail

sales

resulted

noticeable

rise in

orders for most
housewares, gifts, and toys, and volume
moderately from last year.
~
Despite some scattered orders for print cloths and
sheetings,
over-all trading in cotton'
gray goods slipped during
the^week,
while volume in wide-industrial
fabrics was steady and stocks
were limited.
Transactions in4 woolens and worsteds were
down
slightly, but sales of carpet wool were unchanged.
Incoming
orders-at dyeing and finishing
plants in New England

prior week.
noticeable rise in

y A

matched

of the

appreciably

reduced

4„

the

buying

wholesale

•,1-i

of- frozen

stocks.

The

foods

usual

last

week

seasonal

in¬

occurred in

creases

purchases of canned goods, fresh meat,
poul¬
dairy products ^and fresh produce. Volume in
candy and
holiday food specialties moved up substantially.

try,

that

dad,
Roger W.

annual

level of personal
rate

income in November

$360,000,000,000,

and

$10,000,000,000 higher than

ing

the

for 1958

United

as a

States

rose

$2,500,000,000 from

that

whole is expected to be

October

November, 1957,

Department, of

Commerce.

$353,000,000,000,

record

accord¬

The
a

level

new

high.

22
hiQ

^s!

Yet,

the

their

wives

lessons

stated that living
*

prospect

tion

learned

the

col-

colleges

will

and

run

bills;

-----

and

housing
family.

Getting Too
there

areas

state-sponsored

few months

eral

residents

Government

tional

are

college-loan

for

Just

of
ago

the

with

Soft

the

now

three fiscal years.

aVoung

for

liis ne'-k?

burdens
onto

enced

millstone

country-wide

basis

taken

from the Federal Reserve
Board's index for the week
ended Dec.
13, 1958 advanced 3% above the like period last
year. In the pre¬
ceding week, Dec. 6, 1958 an increase of 6%

(revised)

ported.

For

registered.

was

change
'

was

four

weeks

For the

Dec.

period Jan.

recorded from

13,

1958

1, 1958 to Dec.

that of the

was

gain
13,

1958

re¬

3%
no

1957 period.

sales in New York

showed

the

City for the week ended Dec.
13, 1958
increase of 5%. from that of the like
period last year.
preceding week, Dec. .6, 1958 an increase of 9%
was re¬
an

ported. .For the four weeks
4%

ended

According to the Federal Reserve Board's
index, department

store

the

was

increase

noted.

For the

was

ended

period

registered

period in 1957.

Dec,--13, 1958

Janr 1,1958 to
above

that

Dec.

the

increase

13, 1958

of
an

corresponding

remains

acres

due

other

be written

off

apre-

covering

Melben.

suited from 1955

ab-

drilling

re-

4,320
and

off Galveston, Texas,
the lease is still good.

acres

However,

loaned

money

Melben

the

that has to be paid out. It is water
under the bridge.
Hiawatha's management lost on

their

joint operations
companies in which

year

out

acreage

not

small

this

and three

Texas,

were

the

same

Gulf

time that

taking place the company
completing a 500,000 acre

tain

they

areas.

obtain

the

area

159 different areas in

four States for drilling, farmouts
or further
geological investigation.

pa-

wells

in other

where

was

ordi-

com

drilled, 34
were
producers and eight were
dry holes.
Kentucky accounting
for 20 wells,
Wyoming 11 wells

this

play

interested, is land purchase in the Rocky Moun-

are

big

Mexico but at the

Income
close

this
year
is
running
last year's results which

recommendation

poor

current

considering

earnings

all

oil

companies,
As

for

reserves,
informed
sources place a value of
$12 per
share in oil reserves alone with-

out taking into consideration their
100 billion or more cubic
feet of
gas.

biggest production, due to shrinkIn Hiawatha you are
buying exin£ allowables this year and last, cellent management who use juunwittingly load- Zas ?assed °vir jn
,fav01: o£ dkl°"? exploration and develop-

person

are

our

to hang around

financial

youth9

New

inexneri-

England

Wyoming

lhere is

and

Kentucky

n° proration.

where
.

damage they

children

parents

easy

What kind of financial

parents all too soft-hearted to

competitive

loans Hiawatha made

fully

college graduate, ten
Today's market price, hovering
years
out of school, is making between 5 to 6 for the 1,000,000
about $7,500 per year.
Take out shares outstanding, indicates that
of this the charges for all of life's this company is being overlooked
necessities, for babies, cars, a new by investors as in each of the last
home, insurance, and the rest, add J®** yaars the stock has sold above
the repayment of a $5,000 loan for
As °f Dec. 31> *957, capitalieducation, and what do you have zatl0n consisted of 1,000,000 shares
left? Is this a good way for
young common, 319,2/8 shares 5% conmarried couples to start life?
vertible preferred and $520,338 of
I certainly favor
helping the
The low market price can be
student who is really financially
needy and who has some brains accounted for by the following
and ambition.
happening:
But there are al¬
In 1947, Melben Oil
together too many young people
Company,
25% owned by Hiawatha, acquired
who are being sucked into
the
submerged land off the Texas
economic
booby traps of easy coast in
partnership with the
loans and easy marriages by easy
major oil companies. As shown in

many

mains

"the

For the first nine months of this

new

the average

the

and

$491,088 for 1956. However,
proximately $850,000 more

thou-

many

yet to be

obtain

iranmh

sales

stated

1957 drilling was
stepped up
Kentucky, 35 shallow wells
being completed in Muhlenberg
County.

following

Under this

store

free

Act, a student may bor¬
row up to
$5,000 and have 11 years
to repay the loan at 3% interest!
of

•

Act,

Education

What kind

narily available

setting up $47,500,000 for the year
1959; $75,000,000 for 1960; $82,500,000 for 1961; and $90,000,000 for
1962 and for each of the

for

economy

nies.

the Fed¬

Education

*958,

Benedums

able

pro¬

state.

passed the Na¬

Defense

gle

The company got into the
Rocky
Mountain area in 1957 as Hia-

watha,
some

explored."

Considering the nation's present
prosperity, this seems all wrong
a
country boy like me.

trying

Security I Like Best

there

sands of

Parents Are

grald to

are

young men and women
for survival in tomorrow's
strug¬

mdlcaLon that the surface has tune of $850,000 still remains to
hardly been more than scratched, be written off, probably this year,
There are many wells yet to be This is merely a bookkeeping
drilled on acreage already proven item. It does-mot represent cash

lot of money
On top of
this father often has to foot the
costs for a
wedding, medical

and

train

Wyoming property still has a long,
lonS W£W to go. Our acreage there
!s very large, and there is every

grandchildren,

schools

some

$2,000 multiplied by four
is $8,000. $8,000 multiplied
by three children is $24,000
and

his

that

say

dueers now shut in due to
In th0e p,r®/idel)ts leAer', dated sence of marketing facilities,

$2,600.

and food for the additional

nrmr
now hpt»Aniinc# intrnltraH

be doing real harm.

from

was

June

years

tiiat is

nyo.
are

development.

some

high

,i.?Vc'

T„

™

and

even
the
banks,
becoming involved
Federal loans to
students, may

which

during made by Melben in 1947 in the
1957.
Production Gull of Mexico off the coast of
amounts to *>200 barrels a day Texas had their primary terms
and there is room for additional expire in 1957. Three
gas pro-

financial
in

student

per

Par.ents>

WT?
was

The California Company

lege will cost dad about $2,000 per
year

September,

endowed

average? privately

effective,

Savings on income tax should cut
Wyoming's Dead Horse Creek this loss somewhat.
Field, Hiawatha holds a 20% inThis reverse was mentioned in
terest in 16 producers, the first the 1957 annual
statement, and it
well °* which was brought in by came about because various leases

one's uninsured house burn down

become a real
catastroohe
Education

bef

children

can

and
anci

"¥ 7°

Wyoming, 20,735.

today has been likened to having
It

This cheapens the whole
as hurts the man.

Education,

re-

States:

sup¬

educating

graduate

a°~job.~" He'is

the
following
Texas, 268,729; Kentucky,
156,209; Arkansas, 70,110, Louisiana, 48,796; Illinois, 39,367;

same

brother.

process, as well

expenses for his

The

col¬

chilren.

~two or"threc

society,

struggle, self-help, and de¬
important features
college education.

family

them!

nial should be

The

earnings
bless

Continued from page 2

from

year—God

are

and

living well

They are the ones who really de¬
serve help. Education
is not some¬
thing to be handed out on a silver
platter
to
everybody
and
bis

work for less than $6>500!

either

some

time, to pay for the complete

Department

now

seemed

encour¬

them, and also, at the

port

■

$4,000

Students

Service,

Jell

cases, too, where young
married couples with children
are

had just completed

mil_tc*ry

I know

bright enough;
but stated that he could not
go to

is
obli¬
gated to edu¬
cate

years old,
mibt-rv

car

bare

one.

looking for his first civilian job
0ut of college. He had a wife and
two children, and was
deeply in

lege

intr

The

Babson

other

In College?

debt.

mar-

Marry

Av typical young
cently applied' for

age to believe

being

grams

Was up

those

the

people

similar period

noticeably stepped up their buying of
glassware,
china and traditional gifts last week.
Considerable gains over last

other

**'■ v;~"

■

most

These young

rose

Shoppers

young

whole

lighting fixtures

ever-mcreas-

and

new

7"''

ture sales

re-

Girls

The total dollar volume of retail
trade in the period ended on
Wednesday of last week was unchanged to 4% higher than a
year
ago, spot estimates collected
by Dun & Bradstreet, Inc. show.
Regional estimates varied from the
comparable 1957 levels by the
following percentages: Middle Atlantic and East South
Central
States H-2 to ~f-6%; Mountain -j-1 to
4-5; East North Central, West
North Central and West South
Central 0 to -f-4; South Atlantic
and Pacific Coast —1 to
+3; and New England States —4 to 0%.
i
Although apparel stores reported moderate
year-to-year gains
in sales of women's
coats, suits and furs, volume in dresses and
fashion accessories remained close to
that of a year ago. Increased
buying of men's furnishings and sweaters offset
declines in top¬
coats and suits.. Over-all
purchases matched those of the similar
1957 period. There were
appreciable gains over last year in the
call, for boys' slacks and
sports jackets- and girls' sweaters and
skirts.

and

slightly exceeded
Best-sellers were traditional
giftSj toys, hi-fi
women's apparel and
holiday food specialties.

again: during the week and
a year ago.
*

year occurred.

of to-

■

the newspaper strike

many areas and

City, total retail trade

lines of

some

Scattered

leaders

the

morrow.

Slightly Above Like Period

Despite bad weather in
in

ing number of

Trade Volume Rose

moved up noticeably
that of a year
ago.

a, vast

will

ginned for the season
through
Nov. 30 amounted to
10,200,000 bales compared with
8,000,000 in
the similar period a
year ago and 12,400,000 two
years ago.: The
supply of upland cotton to Nov. 30 this season totaled
about 18,800,000 bales against
19,200,000 a year earlier.
/
:
t
7;
.

Should

group of intelligentsia—who
college students of today and

Cotton

readers

many

•

prospective employer
responsible for his wife and
children.
Without
experience, he
just was not worth $6,500 to
any-

and prices were down some¬
Purchases of lambs fell and
prices -dipped, despite a'reduc¬
tion in the salable
supply. Following the trend in hog
prices; prices

what.

minimum.

debt for his

$6,500
simply had

•

Criticizing banks, colleges, parents and tbe Federal Education
Act lor setting up loans to college
students, Mr. Babson avers
education should not be handed out on a silver
platter to everybody and bis brother. He deplores hanging easy credit mill¬
stones, on financially inexperienced and
unsuspecting young
persons and advocates, instead, helping only the
really finan45rj.-r-racially needy possessing brains and ambition.
'

-week

made

him that

■

of'

payments

repayment

education,

By ROGER W. BABSON

wholesale markets

slackening in rice turnover, but prices matched

•the prior week.

and

Federal Loans to Students

finished

week, prices
moderately lower.

family, plus

Against

are

who

for themu

are

doing.

see

Too

being spoiled

make

life

too

4U/\

Hiawatha's
caused

1957

write-off

to Hiawatha

was

ftnld

statement
loss

n kvatta

this

$129,768

the Melben stock,

but nevertheless,
1957

kni-t

net income for

ment

tactics, and

oil and

gas

you are

getting

bargain, plus

tremendous land spread. At this
low-price there
js.little^gamble
attached in buying into,this company, on the other hand, there is
a possibility,of .rich
rewards.

Sutro Adds

Staff

(Special to The Financial. Chronicle)

LOS

ANGELES, Calif.—Ronald

Zane
f
„

.5^

has

been

olltm

Building. He

was

added

Co
*

Van

the

Nuvs

formerly with

J. B. Hanauer & Co.

Two With Bond & Share
(Special to The Financial Chronicle)

ALTADENA, Calif .^Gordon
Hanson and John H, Tristram
now

are

with Bond_& Sb&re Cq., 3479

Canon Boulevard; Mr. Hanson waf

$819,708 against net of formerly with J. Logan & Cq.

(2726)

ADDITION*

* INDICATES

•jjr A. C. I. Films, Inc.
(letter of notification) 1,000 shares of preferred
stock (par $100).
Price—At par. Proceeds—For pro¬
duction and sale of a science-fiction motion picture.
Office—56 W. 45th St., New York 46, N. Y.
Under¬
Dec. 18

writer—None.

Advanced Research Associates,

Inc.

stock (par five
Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
©nd Williams, Widmayer Inc., Washington, D, C. Offer¬
ing—Expected in January.
Dec.

filed

400,000 shares of common

cents).

Allied Publishers,

133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—Foi
expansion and other corporate purposes. Office — At¬
lanta, Ga.
Underwriter—None.

stock

if Champion Paper & Fibre Co^ (1/15)
19 filed $20,036,400 of convertible subordinate de¬
bentures due Jan. 15, 1984, to be offered for subscription

by common stockholders of record Jan. 14, 1959 at the
rate of $100 of debentures for each 22 shares then held;

Price—At
corporate
Bankers Bond Co., Louis¬

Nov.

Underwriter—First Pacific Investment
Corp., Portland, Ore.

1969 and

; American Asiatic Oil Corp.
Nov. 24 filed 100,000,000 shares of capital stock.

rights to expire on or about Jan. 29, 1959. Price—To be
supplied by amendment. Proceeds—To repay outstand¬
ing bank loans and for general corporate purposes, ineluding additional working capital and. future capital
expenditures. Underwriter—Goldman, Sachs & Co., New

6% sub¬

ordinated

and 10 shares of
stock.
Price—$100 per unit. Proceeds—For equipping
and decorating a new store and acquisition of real estate
for a new warehouse and working capital.
Office—
c/o Edward H. Altschull, President, 1027 Jefferson Cir¬
cle, Martinsville, W. Va. Underwriter—Securities Trad¬
ing Corp., Jersey City, N. J.

Price—
Two cents per share. Proceeds—To selling stockholders.
Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Hagedorn, Inc., Manila, Republic of Philippines.
American Buyers

Nov. 13 filed 5,000,000

Credit Co.
shares of common stock, of which

4,545,455 shares of this stock are to be offered for public
©ale at $1.75 per share. [Shares have been issued or are
issuable under agreements with various policy holders
in American Buyers Life Insurance Co. and American
liifc 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
©n stock sales made by them.]
Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
©tales. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬

Bargain Centers, Inc.
20
(letter of notification) $300,000 of
convertible debentures due Jan. 1,

shares of common stock (par
offered in units of $100 of debentures

30,000

Bellechasse Mining Corp.

York.

10 cents); to be

Nov. 24 filed 210,000
of shares

(N. Y.)

stock (par 200).
Proceeds — To

Feb. 28 filed 500,000 shares of common
Frice—To be supplied by amendment.

Rischarge current liabilities and to drill ten wells.
derwriters—To be named by amendment.
American

Enterprise Fund,

right to purchase
"B'* stock for a
period of 18 months after the company receives permis¬
sion to write insurance.
Price—$10 per share.; Proceeds
—For working capital.

follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
Wright area in Quebec); for general prospecting costs;
and for general administration expenses. Office—Mont¬
real, Canada.
Underwriters—Nicholas Modinos & Co.
(Washington, D. C.) in the United States and by Forget
ik. Forget in Canada.

American

Growth

stock. Price—At
Distributor—Ed¬

Inc., New York.
Fund, Inc., Denver, Colo.

1,000,000 shares of capital stock (par one
cent).
Price—At market.
Proceeds—For investment.
Office—800 Security Building, Denver, Colo.
Under¬
writer—American Growth Fund Sponsors, Inc., 800 Se¬
17 filed

Nov.

due

certain

dent.

American Telemail Service,
Feb.

Inc.

17 filed 375,000 shares of common stock

(par $1,

Rrice—$4 per share. Proceeds—To purchase equipmen*
©nd supplies and for working capital and other corporat*
purposes. Office—Salt Lake City, Utah
Underwriter
Amos Treat & Co., Inc., of New York. Change in Name
—Formerly United States Telemail Service, Inc.
♦

Associated Bowling Centers, Inc.

Nov. 24 filed 300,000 shares of 20-cent
vertible preferred stock (par one cent)

preferred shares
account

the

cumulative

con¬

and 50,000 out-

stock (par one cent). The
to be offered for public sale for the
company and the common shares will
common

are

be offered for the account of

selling stockholder. Price
supplied by amendment. Proceeds—To acquire
flew bowling centers and increase working capital (part
to be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment. Offering—Expected in a week or two.
a

★ Astrodyne, Inc., McGregor, Texas
Savings

Plan to be offered to eligible employees of
Astrodyne, Inc., and its subsidiaries, together with 385,€27 shares of Phillips Petroleum common stock which
may be purchased pursuant to the plan.

A* Auto Loan Co.
Dec.

(letter of notification) $250,000 cumulative de¬
Price—$100 per unit and multiples
thereof. Proceeds—For redemption of outstanding pre¬
ferred stock and working capital. Office—786 Broad St.,
Newark 2, N. J. Underwriter—None.
ferred

debentures.

each, and of

Proceeds—For general corporate pur¬
Underwriter—Shields & Co., New York.
Garden-Arena Corp.

Bankers Fidelity Life Insurance Co.

©£

Which 125,000 shares

are

stock

(par $1),
to be offered publicly and
common

purchasing receivable and for other cor¬

Underwriter—Dillon, Read & Co. Inc.,
and Lehman Brothers, all of New

porate purposes.

Kuhn, Loeb & Co.

■<

Clute Corp.

Aug. 21 (letter of

notification) 300,000 shares of common

cent). 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, Golo. Underwriter
—Lowell. Murphy & Co., Inc., Denver, Colo.

stock (par one

Columbia Gas System, Inc.

Bridgehampton Road Races Corp.
Oct. 23 (letter of notification) 15,000 shares of common

pected

stocjc (par $1) to be offered for subscription-by stock¬
holders of record Nov. 1, 1958 on the basis of one new
share for each four shares held; unsubscribed shares
will be offered to current creditors in payment of all

Dec. 19 filed

each $4
rights to expire about two weeks
after mailing of offer. Price—$4 per share. Proceeds—
To pay current creditors.
Address — P. O. Box-506,
Bridgehampton, L. I., N. Y. Underwriter—None.
or

part of claims, at the rate of one share for

of claims discharged;

if Brookridge Development Corp.
Dec. 19 (letter of notification) $200,000 of 6% 15-year
convertible debentures. Price—At par ($500 per unit).
Proceeds—For expansion and working capital. Office—
901 Seneca Ave., Brooklyn 27, N. Y.
Underwriter —
Sano & Co., 15 William St., New York, N. Y.
Brooks

& Perkins,

Inc., Detroit, Mich.

100,000 shares of common stock (par $1).
be supplied by amendment.
Proceeds—To

Nov. 26 filed
Price—To

of common stock (par

$10).

amendment. Proceeds — To
selling stockholders.
Underwriters — Carl M. Loeb,
Rhoades & Co., Merrill Lynch, Pierce, Fenner & Smith
Price—To

and

other firms all of New York.

seven

supplied

day.

any

Offering—Ex¬

;

if Combustion Engineering, Inc.
64,011 shares of capital stock to be offered
in exchange for 81,002 shares of the outstanding common
stock and for 2,131 shares of the outstanding $100 par
preferred stock of

General Nuclear Engineering Corp.,
3.4302 shares of Combus¬

at the rate of seven shares and
tion

Engineering stock for each

10 shares of common

preferred stock, respectively,
Nuclear Engineering (of Dunedin, Fla.).

stock and each share of

General

Commerce Oil
Dec.

Refining Corp.;

16,1957 filed $25,000,000 of

first mortgage bonds due

Sept. 1, 1968, $20,000,00 of subordinated debentures duo
Oct. 1, 1968 and 3,000,000 shares ctf common stoejk to bo
offered in units as follows: $1,000 of bonds and 48 shares
of stock and

$100 of debentures ^d nine shares of stock.
supplied by amendment. Proceeds — To

Price—To be

construct refinery. Underwriter—Lehman
York. Offering—Indefinite.

Brothers, New

Commercial Investors Corp.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Pro¬
investment. Office—450 So. Main St., Salt

purchase at par

Nov.

5,000 shares of the $100 par common stock of Alabama
Metallurgical Corp.; and the balance for general cor¬

mon

stock.

complete the company's commitment to

porate purposes. Business—Rolling and
magnesium and magnesium alloys, etc.

fabrication of

Underwriter—
Lerchen & Co., Detroit, Mich. Offering—Ex¬

Watling,
pected this week.
•

Cardinal

Instrumentation Corp.

(12/30)

notification) 240,000 shares of common
Proceeds—For pay¬
ment of notes, capital additions and inventory. Office—
4201 Redwood Ave., Los Angeles 66, Calif. Underwriter
—Myron A. Lomasney & Co., New York.

Nov. 4 letter of

Price—At par ($1 per share).

Carolina Telephone

•

Underwriter—None.

Carraco Oil Co.,

ceeds—For
Lake

City, Utah. Underwriter—Earl J.
City, Utah.

Knudson & Co.,

Salt Lake

^-Commonwealth Edison Co. (1/13)
$20,000,000 of sinking fund debentures,

Dec. 18 filed

bank loans.

Feb. 28 filed 258,740 shares of

the purpose of

•

ment effective Dec. 3.
_

supplied

Nov. 21 filed 800,000 shares

surplus. Office—Atlanta, Ga. Underwriter—None. State¬

Autosurance Co. of America

(letter of notification) 2,150 shares of common
stock (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.

& 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
eaclj five shares then held; rights to expire on Dec. 29.
Price—$125 per share. Proceeds—To reduce short-term

Oct. 16 filed 250,000 shares of common stock
(par $2.50).
Price
$5 per share. Proceeds—To increase capital and
'

Nov. 24

stock.

(1/8)

due Jan. 1, 1979.
amendment. Proceeds—-To
provide additional working funds for the corporation •
and its subsidiaries, to be used in the ordinary course of
business to reduce short-term borrowings incurred for

Price—To

by amendment.
poses.

—To be

Dec. 19 filed $1,800,000 of Participations in the Employee

I. T. Financial Corp.

Dec. 16 filed $75,000,000 of debentures

^ Borman Food Stores, Inc., Detroit, Mich. (1/20)
Dec. 24 filed 404,900 shares of common stock, of which
304,900 shares would be sold by stockholders of the
company and 100,000 shares would be issued and sold
for the account of the company.
Price—To be supplied

Boston

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©ine, 1201 Highland Drive, Silver Spring, Md., is Presi¬

Price—Of units, $500

aggregate of $300,000). Proceeds—To buy
Office—6 E. 44th St., New York 17,

stock.

Underwriter—None.

N. Y.

York.

American Mutual Investment Co., Inc.

Dec. 17, 1957,

shares.

company's

common

employees through payroll deductions. Price—
on the New York Stock Exchange
(not

the market

to exceed

notes, at par. Proceeds—For general corporate purposes.
Business—A ski lift and school. Underwriter—None.

curity Bldg., Denver 2, Colo.
^

April 1, 1980, the common stock and debenoffered in units of $250 of debentures and

if Chicago Pneumatic Tool Co. Dec. 18 (letter of notification) an undetermined number of shares of common stock (par $8) to
offered to
At

Big Bromley, Inc., Manchester, Vt.
Dec. 9 filed 6,000 shares of common stock, $300,000 of
5% debentures due April 1, 1979, and $100,000 of 6%
tures

Office—2807 Sterick Bldg., Mem¬

Underwriter—None.

phis, Tenn.

years as

notes

"A" shares will receive with each

share purchased a warrant granting the
for $10 per share one shares of class

Ltd.

change, at the time the offering is made. Proceeds—To
be applied over the balance of 1958 and the next three

five

Inc., New York

Oct. 30 filed 487,897 shares of common
market.
Proceeds—For investment.
ward A. Viner & Co.,

Un¬

the class

chasers of

derwriter—None.

American-Caribbean Oil Co.

shares of class "A"voting common

warrants to subscribe to a like number
of class "B" non-voting common stock. Pur¬

stock and 210,000

filed

Chemical Fire & Casualty Insurance Co.

;

800,000 shares of common stock. Price—
Related to the market price on the Canadian Stock Ex¬
Oct.

(par 25 cents).

Dec.

ville, Ky.

Portland 14, Ore.

& Co., New

Berry

notification) 300,000 shares of common
Priee—$1 per share. Proceeds—
Address—P. O. Box 1849, 3720 E.
32nd Street, Yuma, Ariz. Underwriter—L. A. Huey Co.,
Denver, Colo.
■ : >/' *"•/•
■ ;'W

McDonald, Holman & Co.,

(letter of notification) 22,000 shares of common
(par $1). Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Nov. 28

©tock

For working capital.

Bankers Southern, Inc.

—

Cemex of Arizona, Inc.

Vi/

Underwriter

ISSUE

Nov. 17 (letter of

April 14 filed 8,934 shares of common stock.
par ($100 per share).
Proceeds—For general
purposes.

Inc., Portland, Ore.

Inc. (formerly

Inc.), New York.

REVISED

York.

Bankers Management

Kaiser & Co.,

ITEMS

Underwriter

corporate purposes.

Corp.
Feb. 10 filed 400,000 shares of common stock (par 25
cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. Office—
1404 Main St., Houston, Texas. Underwriter—McDonald,

SINCE PREVIOUS

•

Ada, Okla. (1/15)
200,000 shares of common
Proceeds — For general

Nov. 10 (letter of notification)
stock. Price—$1.50 per share.

Jan.
for

ultimate

additions and improvements.
mined by

due

Proceeds—To be added to working capital
application toward the cost of property

1, 2009.

Underwriter-—To be deter¬

competitive bidding. Probable bidders: Halsey,
Forgan & Co.; The First Bos¬

Stuart & Co. Inc.; Glore,

Corp. Bids—Expected to be received up to 10:30
(CST) on Jan. 13 at Room 1820, 72 West Adams

ton

a.m.

St.,

Chicago 90, 111.

if Consolidated

Edison Co. of New York, Inc.

d/27)
Dec.

filed

debentures

due

maximum of $59,778,600

Aug.

15,

of convertible

1973, to be offered for

sub¬

stockholders at the rate of $100
principal amount of debentures for each 25 shares of
stock held of record on Jan. 26, 1959; rights to expire

scription

Feb.

13.

common

Price—100%

(flat).

Proceeds—To repay

\444t)

short-term bank notes, and for additions to
utility plant.
Underwriters,—Morgan Stanley & Ccrrand The First Bos- ;

'•

ton

Corp., both t)f New York.

•Consumers Cooperative

Kansas City,

■

Qct.

Association,

Mo.\

stock

(cumulative-to extent' earned before
patronage refunds). Price—For certificates at $100 per
unit; and the preferred stock at $25 per share. Proceeds
-f-For retirement of maturing certificates of indebted¬
ness, redemptions on request of certificates of indebted¬
ness prior to maturity and of .5
i&.% -preferred stock; the
possible improvement and expansion of present facili¬
ties; and the acquisition of-manufacturing plants and

f ' "V

Consumers Power Co.
.'ww.. v.Aug. 29 filed 150,000 shares of preferred stock, (no par)
Price—To be supplied by amendment. Proceeds—To re¬

Counselors Research Fund,
Inc.,
Feb. 5 filed 100,000 shares of
capital

•'

^ Drift Run Qas & Oil Syndicate
*
co-ownership interests of the working
of this
Syndicate.
Price—$645 per interest.
Proceeds—For drilling of wells/
Office—c/o Willard E.;
Ferrell, 1405 Locust St., Philadelphia, Pa. Underwriter
.

St. Louis, Mo.

stock,

(par

Dec. 22 filed 128

interest

one

cent).

Price—At market.
Proceeds—For investment.
Underwriter
Counselors Research Sales
Corp., St.
Louis.. Robert H. Green is President.

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10
cents). Price—$2 per share. Pro¬

—None.

...

ceeds

For repayment of
loan; purchase of plant and
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.
—

office

•

Person Mines Ltd.
June 5 filed 350,000 shares of
per

share.

Proceeds—For

stock.

common

new

Price—$1

equipment, repayment of

December

(Hoi ton,

Hull &

and

Co.

f(Monday ) 'r

Paoific

Coast

December 30

;

Cardinal

'S;

Co.)

January

crease

working capital.

(Offering

Ethodont

Laboratories, Berkeley, Calif.

Feb. 20 filed 300,000 shares of common
stock.
At par ($5 per share). Proceeds—To cover

during the development period of the

expense

tion.

January
Transistor

Silie®n

(Monday)

underwriter)

(No

(Allen

$600,000

& Co.;

1,000.000

Chicago & North Western Ry._
(Bids

CST)

noon

January 20

Equip. Trust Ctfs.

Nothwest Gas & Oil Exploration Co.___Li_Common
•.(Greenfield'.'& Co., Inc.) $300,000

(Wednesday),

General Telephone Co. of California

(Lee

Co.)

(Paine,

Natural

Pc-abody

and

Curtis)- $1,250,000

Co./Inc.)

40,000

$200,000

Eastman

Dillon,

Corp.)

(Bids

(Dillon,

Read

(Offering
Corp.

San

Lehman

Co.,

Brothers)

and

Co.

Robinson,

Woodward &

The

Co..)

First

33,000

Boston

(Friday)
Common

January 27
to

stockholders—to

Stanley & Co.

Southern

shopping site; for new equip¬
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.
ment

The First

ana

underwritten

Boston

by Morgan
$59,778,000

Corp.)

notification) 133,333 shares

common

stock

(par 25 cents). Price—$2.25 per share. Proceeds—
For mining expenses. Office—4334 S. E. 74th

Ave., Port¬

land

6, Ore.
York, N. Y.

Underwriter

Rostf" Securities Inc., New
'
-

—

Fort Pierce Port & Terminal
Co.
Nov. 25 filed 2,138,500 shares of common stock
(par

$1).
Price—$1.25 per share.
Proceeds—To pay short-term
loab® and for completing company's Port Development
Plan

(Tuesday)

—Common

(Wednesday)

and

rest

added

funds.

general

Pierce, Fla. Underwriter—Frank
Beach, Fla.

Office

—

Fort

Bateman, Ltd., Palm

General Alloys Co.

;
(letter of notification) 45,250 shares of common
(par $1) of which 16,900 shares are to be offered
to employees and the remainder to the
public.
Prioe—
stock

(Bids 11

Common
EST) between $40,000,000 and $45,000,000

a.m.

-Common

Lothrop Inc

—

Nov. 17

February 17
Public Service Co. of
(Bids

r,(Alex. Brown & Sons) 50,000 shares

$4,000,000

(Dcmpsey-Tegeler & Co. / 480,000 shares

Common

Humphrey &

February 4
;

Oct. 14 (letter of

and

(Bids 8:30 a.m. PST) $15,000,000

$35,000,000

(Thursday)

January 23

1' -f

$75,000,000

Tractor Supply Co.__—

)

National State Bank

(Offering

Loeb

Diego Gas & Electric Co.____- Debentures

T.,V

Bonds

EST

a.m.

Consolidated Edison Co, of New
York, Inc.___Debs.

Debentures
Kuhn,

and

(Offering to stockholders—underwritten by Clark, Dodge & Co.)

(Thursday)

Inc.;

Co.

stockholders—underwriten

Common

Corp._

ordinated debentures and 40,000 shares of
common stock,
to be offered in units of $100
principal amount of deben¬
tures and one share of common stock. Price
$110 per
unit. Proceeds—For purchase and
development of sub¬
division land, including

Fluorspar Corp. of America

(Kidder, Peabody & Co.; Blyth & Cor, Inc.; White, Weld & Co.
and Laurence M. Marks & Co.) $15,000,000

Johnston, Lemon &

Mobile Gas Service Corp

C. I. T. Financial

40,000

January 22

Portfolios, Inc.) $500,000"'1

January 8

Securities

$7,500,000

Builders, Inc.
$4,000,000 of 6% 15-year sinking fund sub¬

Dec. 1 filed

sh<*

(Offering to stockholders—underwritten by The First Boston

Washington Water Power Co.__i:i____L_-__Bonds

Union

Fund)

Com.

Sire Plan of Elmsford, Inc.__'—l_;__Debens, & Pfd.

■i_

Florida
Common

404.900

Rockland-Atlas National Bank of Boston__Common

(Offering to stockholders—to be underwritten by The First
Boston Corp. and Drexel & Co.) 295,841 shares

Plan

Co.)

Abacus

debentures

Pennsylvania Power & Light Co._—_

(Sire

500,000 shares

Blair

common

Co.?

Debentures

Jackson

Common

Southern Natural Gas Co

Service Co.——-Debentures &

Gas

(Kidder,
,

Webber,

and William

$30,000,000

Kaman Aircraft Corp...—

(letter of notification) 50,000 shares of class A
stock (par $2).
Price—$6 per share. Proceeds—

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¬
ed until after the first of
January.

by Eastman
shares

106,841

(Tuesday)

(Offering to stockholders—underwritten

Corp,_________-l"l__Debenture$

Higginson Corp.; White, Weld & Co.;

Co.)

Corp.

common

Government Employees Variable
Annuity
Life Insurance Co
Common

—Preferred

(Paine, Webber, Jackson & Curtis and Mitchum, Jones &
Templeton) $10,000,000

Household Finance

underwritten

Borman Food Stores, Inc
(Shields

January

Dec.
Common

Securities

Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot
Bldg., Detroit,
.

$10,000,000

'•>

—

First Lumber

-Bonds

(The First Boston Corp. and Dean Witter &
Cc.)

$3,300,000

Finance Co.

(letter of notification)

capital.
writer

Southern California Edison Co

(Tuesday)

16 filed 200,000 shares of class A common
stock.
Price—At par ($1.50 per share).
Proceeds—For working

(Monday)

EST)

noon

Union

corpora¬

Underwriter—None.

Mich.

(Offering, to stockholders—to
Dillon,

Price—

operating

Dec.

$900,000

Seiberling Rubber Co._

Utilities

Co.)

Ltd;Li;iii_—_itC£Common

January

States

(Bids

Corp.___________i.__*_£iCommon

.United Asbestos Corp.

Debentures

Common
&

January 19
Gulf

Indiana, Inc

invited)

employees, $1.1805 per share. Proceeds—To purchase
install machinery and equipment.
Office—367-405
West First St., Boston, Mass.
Underwriter—William S.
Prescott & Co., Boston, Mass.
and

(Tuesday)
Bonds

$25,000,000

General Aniline & Film

January 9

(Friday)

1—-Common

Heliogen Products/ Inc
(Albion Securities'Co. >

•

January 12

Kaiser Industries Cor p.
First

p/:

Boston

(Monday)

~'v7.\

•

Common

Rhoades

Loeb.

and Carl M
shares- J

500,000

Co.)

(Thursday)
Bonds

invited)

April 30
Alabama
•"

Power

...I!', "

$7,000,000

(Thursday)

(Bids

-Bonds
be

invited)

$20,000,000

Mechmetal-Tronics Inc.
f.

(• "

I——-Common

(Charles Plohn

Co.)

$247,500

May 28
Southern Electric

Rochester Telephone Corp.___—^—Common
(Offering to stockholders—underwritten by The First Boston

(Bids

(Thursday)

Generating Co
to

„___Bonds

invited) $25,000,000

•

Corp.)
"J>T

195,312

"Spur Oil Cc._

Securities

;,Cf

June 25

i___—_i_Common

—

(Equitable

"•

Corp.)

1J)00,000

Corp., New York '
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 Bos¬
ton
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan Sc Co. (jointly). Bids—Had
been scheduled to be received
up to 3:45 pjn. (EDT) ok
May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25. D. C., but bidding has been
postponed.
Jan.

Co
(Bids

Dean Witter & Co.;

Corp.;

Power

$144,000

(The

April 2

Gulf

(Thursday)

(Bids

___Bonds

invited;

General

Dec.

Mississippi. Power Co.__
$5,000,000

stock

Telephone Co. of California (1/7)
500,000 shares of 5% cumulative preferred
(par $20). Price—To be supplied by amendment.

16 filed

Proceeds—To

used

for

January 13:(Tuesday)
Commonwealth Edison
(Bids

10:30

a.m.

September 10

——Debentures

CST}* $20,000,000

Georgia Power Co.__

Gulf States Utilities
(Bios 11

(Offering

Elworthy

Co.)

by Blyth
7.4,511 shares

Smith-Corona Marcbant, Inc.—
(Offering

stockholders—underwritten

Co.,
v

;

January 14
'

Power & Light

(The

Boston

First

Miqktigan

(Wednesday
Co

(Harriman

Riplev

Co.,

Inc.

Telephone

Power
(Bias

Gundy

Debentures

$40,000,000

Co
to

(Kuhn, Loeb & Co

Bonds
be Invited)

$20,000,000

Co,

Inc.)

..Bonds
$24,000,000

bank

Pennsylvania Power Co
to be Invited)

Southwestern Bell

...

Bonds

$8,000,000

Telephone Co

(Bids to be Invited) $110,000,000

loans.

par

($25

per

share).

Proceeds

Underwriters—Paine, Webber,

Corp;,
Mitchum, Jones &
Templeton, Los Angeles, Calif. There is no firm commit¬
ment by the underwriters to acquire the stock.
Government Employees Variable
Insurance Co. (1/20)
Nov.

and Lehman Brothers)

repay

Jackson & Curtis and Stone & Webster Securities
both of New York and Boston; and

13 filed

to be offered

2,500,000 shares of
by company

Annuity Life

common stock

(par $1)

about Jan. 20, 1959 vi2:
(par $4) of Government
Employees Insurance Co., on the basis of one warrant
(1) to holders of

Debentures

and Wood,

$75,000,000

Preferred

Moore-McCormack Lines, Inc

of), Canada

stock, series B. Price—At
—To

$2,000,000

-i——Common

Corp.) "275,000

Bell

(Bids

Ontario (Province

(Bids to be Invited)

Montana

and Smith Polian & Co.)

Power

(Morgan Stanley & Co.) $15,000,000

Brothers.

Southern California Water Co.—__—-Debentures
Witter & Co.

Postponed Financing
Consumers

Inc

$7,450,000

(Dean

to-

Dec. 23 filed 480,000 shares of $1.30 cumulative
preferred

^-Debentures
Lehman

and

discharge in part short-term bank
loans. Underwriters—.Paine,
Webber, Jackson & Curtis,
of New York and
Boston, Mass., and Mitchum, Jones St
Templeton, Los Angeles, Calif, (not under a firm com¬
if General Telephone Co. of Florida

EijT i $10,000 ,000

stockholders—underwritten
and

property additions

mitment basis).

Lynch,

Cot_^_—I———^Preferred

a.m.

and

.Pacific National Bank of San Francisco__Common

$18,000,000

Common
stockholders—underwritten by Merrill
$2,700,000

Pierce, Fenner & Smith)

Kansas

Bonds

be invited)

Co., Tulsa,

Okla.
(Offering

1.,

provements

(Thursday)

(Bids

First National Bank & Trust

Bridgeport Ave.,'

Eugene C. Dinsmore, Omaha, Neb.
^Finance For Industry, Inc.

& Co.) $20,036,400

(Peter Morgan

to stockholders—underwritten by The First Boston
Wood, Struthers & Co.). 145,200 shares

950

—

Common

Surrey Oil & Gas Corp

(Wednesday)

Corp.; and

(Thursday)
:

I,.;

;;.._;.

Northern Insurance Cq. of New York_____Common
s-

(Offering to stockholders—underwritten by Goldman, Sachs
.; 9

Office

Milford, Conn. Underwriter—None.

$300,000 of 10-year 6%
debentures. Price—At par
(in de¬
nominations of $1,000 each). Proceeds — For
working
capital, to make loans, etc. Office—2104 "O"
St., Lin¬
coln, Neb. Underwriters
J. Cliff Rahel & Co. and

(Berry & Co.) $300,000

;.c"

; ^

senior subordinated

Champion Paper & Fibre Co.—£
Common

■

common stock (par
$5). Price -$10 per share. Proceeds
—To pay off current notes
payable to bank and to in-

Nov.

Carraco Oil Co

$300,000

(Tuesday)

Instrumentation Corp.__—
(Myron A. Lomasney & Co,),. $240,000

December 31

Common

Securities

Edgcomb Steel of New England, Inc.
Dec. 5 (letter of
notification) 30,000 shares of class A

Federated

NEW ISSUE CALENDAR
Networks Electronic Corp._'_—_____

•

properties if favorable opportunities therefore
Underwriter—None. /*,'

loan, acquisition of properties under
option, ami other
corporate purposes.
Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.

Morgan
Offering—Postponed indef¬
—

—

crude oil

arise.

Underwriter

■

$6,000,000 of 5Vz% 25-year" subordinated
certificates of indebtedness,. and 60,000 shares of 5 Vz %
J

v,,.

provement of service facilities.

Stanley & Co., New York.
initely.
' ;/

filed

preferred

short-term bank loans and for expansion and im¬

pay

common

share of stock held

on or

stock

Jan. 6,

1959 (1,334.570 shares

Debentures

Continued

page

Financial Chronicle

The Commercial and

for subscription by common

to be offered

Continued from page
now

outstanding); (2) to holders

of common stock (par

Insurance Co., on
held on Jan.
6 1959 (216.429 shares are now outstanding); and (J) to
holders of common stock (par $5) of Government Emnloyees Corp., on the basis of V2 warrant per share of
etock held on Jan. 6,1959 (as of Sept. 30, 1958 there were
143,127 shares of stock outstanding and $614,360 of 0% >.■
convertible capital debentures due 1967, convertible into
chares 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—S3 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
& Cc., New York: and Abacus Fund, Boston, Mass.
Warehouse Co.

Grain Elevator
3 filed

100,000

outstanding shares of common

(par 10 cents). National Alfalfa
Co : holder of the 100.000 common

writer—None...

:;/ / ■'/ ■;

-,7

-'•••• v'-\ •, *
Oct. 29 filed 187,534 shares of common stock (par $5)
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
80% of the outstanding Sunrise shares by Dec. 31. State¬
ment became effective Dec. 10.
Grand Union Co.

Guaranty Life Insurance Co. of
Nov. 14 filed 88,740 shares of class
-

America
A common capital

$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)
Dec. 11 filed $10,000,000 of first mortgage bonds due
-

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 &
Webster Securities Corp.: and Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co. (jointly).
Bids—Expected to be recei ved up to noon (EST) on Jan.
19 atTheHanover Bank, 70 Broadway,New York 15.N.Y.
Proceeds—To repay bank

(1/13)
Dec. 11 filed
of cumulative preferred
stock (par $100). Proceeds—To repay bank Joans and
for construction pxpgram.
Underwriter—To be deter¬
mined bv 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 up to 11 a.m.
(EST) on Jan. 13 at The Hanover Bank, 70 Broadway,
Gulf States

New York 15,

Utilities Co.
100.000 shares

Hamilton Oil & Gas Corp.
Oct. 22 filed 1,000,000 shares of common
,

stock (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 588,000 common shares issuable upon exercise
of 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¬
ic Harney Corp.
Dec. 12 (letter of notification) 750,000 shares
mon stock.
Price—At par (10 cents per share).

•—71

of com¬
Proceeds

acquire properties,

Southwest Third Ave.,

Ontario, Ore. Underwriter—

Heartland Development Corp. ;

notification) 22,820. shares of nonpreference stock (par $12) to be
offered for subscription by stockholders on the basis
cf one share of convertible preference stock for each
10 shares of common stock held on or about Nov. 1,
-1958. Stockholders will have 45 days in whieh to exer¬
cise the rights.
Price — At par. Proceeds — To repay
debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under¬
Oct.

supplied by amendment. Proceeds—For working
capital.
Office—Fort Lauderdale, Fla. Underwriter—
H. Hentz & Co., New York.
Offering—Expected late in January.
:
/■
be

Co., Tulsa, Okla.
Nov. 5 filed 116,667 shares of common stock (par $5).
Price—$6 per share. Proceeds—For working capital and
general corporate purposes. Office — 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None.
Home-Stake Production

-^Household Finance Corp., Chicago, Hi. (1/7-8)
19 filed $30,000,000 of sinking fund debentures due
1984. Price—To be supplied by amendment. Proceeds—
To reduce short-term bank loans which were incurred
under the company's established line of credit to pro¬
vide additional funds for lending to customers in the
usual course of business. Underwriters—Lee Higginson
Corp, and White. Weld & Co., both of New York, and
William Blair & Co., Chicago, 111.

Dec.

Thursday, December 25, 1958

-votihg

(letter

convertible

writer—None.

•'

Heliogen Products, Inc. (1/9)::
,©ct. 22 (letter of notification) 28,800 shares of common
stock
(par $1).
Price—$5 per share. / Proceeds—For
•payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. L C.
8, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11 Broadway, New York 4, N. Y.

Highway Trailer Industries, Inc.
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 Avenue, N. Y.
Underwriter—None.
Hilton Credit Oorp., Beverly Hills, Calif.
Dec. 18 filed

1,942,570 shares of common stock (par $1)

Underwriter—

capital.

working

Proceeds—For

ment.

Paine, Webber, Jacksoh:;& Curtis, Boston, Mass.

ic Kansas Power & Light Co. (1/14)
275,000 shares of common stock (par $8.75).
Price—To
be supplied Vby, "amendment. r Proceeds—To

Dec. 22 filed

$6,500,000 of bank borrowings and for construc¬

repay

Underwriter

tion program.

York.

New

The First Boston Corp., >

—

;

■

Insurance Co.

Kennesaw Life & Accident

•

(letter of notification) ,59,393 shares of common,
stock (par $1) being offered to stockholders of recordNov. 17, 1958, on a one-for-four basis; rights to expire ,
on Dec. 30. Price—$2.25 per share. Proceeds—To increase
Nov. 26

and surplus. Office—317 Atlanta St., Marietta, J
Underwriter—Robinson-Humphrey Co., Atlanta, Ga.

capital
Ga.

.
v.
: Ti;
additional 1,000,000
shares of Keystone Custodian/Fund Certificates of Par¬
ticipation Series S 3. Price—At market. Proceeds—For

Custodian Funds,:. Inc.

ic Keystone

Dec.

amendment)

(by

filed

Office—Boston, Mass.

investment.

Laughlin 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

(pal*

of $100 of

10 cents) to be offered in units

Price—$100 per unit.;
Proceeds—Together with a $175,000 mortgage loan from
the American Brake Shoe Co., will be used to meet ex¬

debentures and 30 common shares.

penditures

acquiring

South San

company's

latter

capital. Offices—Las

Francisco foundry and for working

Vegas, Nev., and South San Francisco, Calif. Underwriter
—Sam Watson Co., Inc., Little Rock. Ark., on a best
Statement withdrawn Oct. 29.

basis.

efforts

;» ;...

Exploration Co., Inc., Arnelt, Okla.
Dec. 23 filed 400,000 shares of common stock. Price—$2
per share. Proceeds—For machinery and equipment and
exploration purposes.; Underwriter—None.
ic Laure

Insurance

Life

Securities Corp.- *

darch 28 filed 1,000,000

shares of capital stock (par $1).

Price—$5 per share. Proceeds—To acquire stock control
f "young, aggressive and expanding life and other in•urance companies and related companies and then to
_

Indiana & Michigan

Electric Co.

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
& Co. Inc.; Eastman Dillon, Union Securities & Co.; The
First Boston Corp.; Harriman Ripley & Co. Inc. Offer¬
ing—Date indefinite.

Washington, D. C.

of common stock (par one
Proceeds—To develop and:
mica properties in Alabama. tJnfprwriters—Dearborn & Co. and Carr-Rigdom 8? Co
both of Washington, D. C., on a best efforts basis. State¬
/uly 24 filed 600,000 shares
lent). Price—$1 per share.

iperate graphite and

ment effective

filed

Angeles Drug Co.
of capital stock, to be offered
for subscription by holders of outstanding stock, on a
Los

Corp.

(N. Y.)

Price—$10.50 per share to stockholders;.

fund debentures.

$11.50 to public. Proceeds—$328,300 to redeem
ing 5% sinking fund debentures and $189,200
short term bank loans.

(M.)

(letter of notification)

stock

& Sons, Inc.

LuHoc

one

Mining Corp.

Sept. 29 filed 350,000 shares

Oct. 6 filed

Investment Corp. of

Florida

Underwriter—None.
ic Israel Citrus Plantations Ltd.

Lauderdale, Fla.
Dec. 23 filed

750,000 shares of common

Office—Tel Aviv, Israel.

stock. Price—$1

packing houses,
planting of new
Underwriters—None.

Investors Corp.

Israel

Dec. 1 filed 46,260

shares of common stock.

Price—$100

share. Proceeds—For investment. Office—19 Rector
Street, New York, N. Y. Underwriter—None. Offering—
Expected about middle of January.
per

of notification) 200,000 shares of common

(par 10 cents). Price—$1 per share. Proceeds—To
acquire machinery and equipment and additional space
for test laboratories; and for working capital. Office—
stock

4 Manhasset

writer

—

Ave., Port Washington, L. I., N. Y. Under¬
Fennekohl & Co.,. 205 East 85th St., New

York, N. Y.

★ Jackson's Minit Markets, Inc.
19 filed 250,000 shares of common stock.

Dec.

$3 per share.
Proceeds—For
construction of stores prior to

Price—

acquisition of land and

their sales to others and
their lease-back by the company; for the equipping and
stocking, of its stores, and for general operating pur¬
poses.
Office — 5113 Fairmont St., Jacksonville, Fla.
Underwriters—Pierce, Carrison, Wulbern, Inc., Jackson¬
ville, Fla.;, Courts & Co., Atlanta, Ga.; and The John¬
son, Lane Space Corp., Savannah, Ga.
Kaiser Industries Corp. (1/12)
Dec. 22 filed 500,000 shares of common stock (par $4).
Price—To
be supplied by amendment.
Proceeds—To
selling stockholders.
Underwriters—The First Boston
Corp.. Dean Witter & Co. and Carl M. Loeb, Rhoades &
Co., all of New York.
lAr Kaman Aircraft Corp., Bloomfield, Conn. (1/7)
15 filed $1,250,000 of 6% convertible subordinated
Price—To be supplied by amend¬

Dec.

debentures due 1974.

M. C. A. Credit

Del., and Emporium, Pa.

share.
E.

Walter

Price—$5

Proceeds—To reduce current indebtedness to
& Co.. Underwriter—Plymouth Bond

Heller

& Share Corp.,
•

Co., Inc., Miami, Fla.

100,000 shares of common stock.

Miami, Fla._

Mammoth Mountain Inn Corp.

of common
share. Proceeds—To be
used to build and operate and all-year resort hotel. Office
—Suite 204, 8907 Wilshire Blvd., Beverly Hills, Calif.
(letter of notification) 70,000 shares

Dec. 10

Price—$5.50

per

Underwriter—None. Letter to be amended." ■'
,

Mankato Citizens Telephone Co.

(letter of notification) 5,454 shares of common
stock (no par) to be offered for subscription by stock¬
holders on the basis of one new share for each seven

Nov. 19

shares held;

$55

per

unsubscribed shares to employees.

Price—

Proceeds—To complete dial conversion Office—315 South Second St., Mankato, Minn.

share.

program.

Underwriter—None.

Inc.

Nov. 28 (letter

Offices—Wilmington,

poses.

Underwriter—None.

stock (par $5).

share. Proceeds—To be used for new
purchase of citrus groves and for the

per

of common stock. 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¬
per

per

(letter of notification) 55,555 shares of common
6tock (par two cents). Price—$4.50 per share. Proceeds
—For capital account and paid-in surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise Boulevard, Ft.

Oct. 9

basis of IV4 shares in-

share of capital stock of Wamsutta*
Mills. The offer expires on Dec. 19. Office—1430 Broad¬
way, New York, N. Y. Underwriter—None.
./
exchange for

Offering—Being held in abeyance.

City Life Co.,

Calif.

•

3,225 shares of common

(par $1) being offered on a

Hartford, Conn.
Nov. 26 (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¬
insurance

outstand¬
to reduce

Office—Los Angeles, Calif. Un¬

derwriter—Quincy Cass Associates, Los Angeles,
Nov.

150,000 shares of common

Co., New York.

rata basis. Any shares not so sold will be offered on
exchange basis to holders of outstanding 5% sinking

Lowenstein

stock (par It
•ents). Price—To be related to the market price. Proweds—For working capital and to enlarge research and
levelopment department. Underwriter — S. D. Fuller A
28

companies as subsidiaries." UnderwriterPortland, Me.
* '• >

Oct. 3 filed 50,000 shares

Nov. 18.

Jndustro Transistor
feb.

jperate such

first Maine Corp.,

pro

Industrial Minerals Corp.,

Itemco

None.
•:

* Home Owners Life Insurance Co.
Dec. 19 filed 153,840 shares of common stock to be of¬
fered for subscription by stockholders on the basis of
one
additional share for each two shares held. Price—

groves.

exploring, providing access and
developing the properties and for working capital. Office
—To

per

for

mencement of such offering.]

ford, Conn.

N. Y.

Hoagland £ Dodge Drilling Co., Inc.
27,000 shares of capital stock. Price—$10
share. Proceeds—To be used fn part for the ex- '
ploration of mines and development and operation of '
mines and in payment of indebtedness/ Office—Tucson,
Ariz. Underwriter—None.
*
June 12 filed

Sept. 26 filed $20,000,000

stock (par

1989.

porate purposes and to finance the company's purchase
of charge accounts from Hilton Hotels and other estab¬
lishments who may agree to honor Carte Blanche cards.
Underwriter—Carl M. Loeb, Rhoades & Co., New York.

stock
Dehydrating & Milling
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
Grain Elevator stock for each share of National Alfalfa
common held on Nov. 17, 1958; rights to expire Dec. 31.
Price—S2 per share. Proceeds—To selling stockholder.
Office —927 Market Street, Wilmington, Del.
Under¬
Nov

stockholders of

rate of one share of Hilton
Credit stock for each two shares of Hilton Hotels stock.
Price—To be supplied by amendment.
Proceeds—To¬
gether with bank loans, will comprise the operating
funds of Hilton Credit and will be used for general cor¬
Hotels Corp. at the

Hilton

$1.50) of Government Employees Life
the basis of IVz warrants per share of stock

(2728)

...

«...

•

Milwaukee, Wis.Nov. 10 filed 501,500 shares of common stock (par $10)
being offered in exchange for all the issued ;and outstand¬
ing shares of capital stock; of the following banks at the
indicated ratios of exchange: (1) two shares for each of
the 220,000 outstanding shares of Marine National Ex-change Bank of Milwaukee, $20 par; (2) 22 shares for
each of the 1,000 outstanding shares of Cudahy; State
Bank, Cudahy, Wis., $100 par; (3) three shares for each
of the 7,500 outstanding shares of Holton State Bank,
Milwaukee, $20 par; and (4) 17 shares for each of the
1,000 outstanding shares of South Milwaukee Bank,
•

Marine Corp.,

South Milwaukee, $100,par.

Eacll of the exchange pro- -

posals is conditioned (among other things) upon ex¬
changes being made with the holders of not less than
80% of the stock of the bank with respect to

proposal is made.
1958.

which the
The offer will terminate on Dec. 31,

Statement effective Dec. 8.,

ic Marionflex Realty Co.
Dec.
stock

(letter

(no par).

construction

of notification)-900

shares of common

Price—$100 per share/ Proceeds—For
purposes. ; Office — 131 Highland Ave.,
(

Montclair, N. J. Underwriter—None. • Maryland Life Insurance Co. of Baltimore
Nov. 26 (letter of notification) 6,954 shares of capital
stock (par $2) to be offered for subscription by stock-

.Volume 188

Number 5806

The Commercial and Financial
Chronicle

(2729)
holders
share

for

record
each

Dec.

1958 in

the

ratio

one

(par $12.50) to be offered for subscription
by stockhold¬
of record Dec.
23, 1958, at the rate of one new share
two shares then held
(exclusive of any shares
issuable to stockholders as a result of a distribution
of

—

Charles Plohn

chase Plan of 1959; also 49,875 shares of common stock
to be offered pursuant to the
company's Restricted Stock

new

concurrently with the issuance
warrants); rights to expire on Jan. 19. Price—
supplied by amendment. Proceeds—To increase
capital and surplus.
Underwriters—The First Boston
Corp. and Wood, Struthers & Co., both of New York.
•

Northwest Gas & Oil Exploration Co.

Aug. 22 (letter of

one

Pioneer

ot common

Nov.

ated

Town Bank Bldg., Baltimore
2, Md.
land Securities Co..

15 filed 60,600 shares of common
stock, $43,333.33
3^4 % debentures maturing on or before
May 6, 1965,
$692,000 of 6% debentures maturing on or before Dec.

104, Old

Baltimore,., Md.

★ Midland Cooperatives^- Inc.
Dec. 15 (letter of
notification) $250,000 of 5% subordin¬
ated debenture notes, of which
$125,000 principal amount
will mature in seven years from date of
issuance; $50,000

and/or to

an|L$ft5,000

Northeast, Minneapolis

13t/^inn.

551

general

corporate

and

purposes

Odlin
Nov.
and

Price—To be related to the current market

Oppenheimer

price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program
through 1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and I|Jyth
& Co., Inc.
Natural

Gas

Service Co.

sometime

Pacific

offered

four shares of

amendment.

common

units

(1/7)

stock.

$20

debentures

ferred

penses

expenses.

ceeds

Offering

—

are

Roseland, N. J. \,

—

Petroleum

couver,

Canada.

market.

common

Proceeds—For

stock

investment.

1958.

Underwriter

■

.
.

—

Frederick

Co.,

Merlau, Rochester, N. Y.,
as agent for the corpora¬

^Rochester Telephone Corp. (1/12)
Dec. 18 filed 195,312 shares of common stock (par
$10)
to be offered for subscription by common stockholder*
of record Jan. 9, 1959 on the basis of one new share for
each six shares then held; rights to expire on Jan. 26.
Price—To
be supplied
by amendment.
Proceeds—-To
repay bank borrowings. Underwriter—The First Boston
Corp., New York.

(par $1).
Under¬

writer—Investors Investments Corp., Pasadena, Calif.

...

Razor, Inc.
(letter of notification) 400 shares of capital stock
(no par). Price—$125 per share. Proceeds—For general
corporate purpose. Office—21 Rutter St., Rochester, N. Y.

—

19 filed 20,000 shares of

Rochester

Dec. 3

shares.

May

Ltd., Alberta, Canada

Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to working
capital. Underwriter — Pacific Securities Ltd., Van¬

tion.

Price—At

account of the

(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment

Peckman Plan Fund, Inc., Pasadena, Calif.

Of¬

stock,' of ^vhich

The company proposes to offer
the 1,174,716 shares for subscription by jts shareholdera
one new share for each three shares held

common

Blvd., Los Angeles 17, Calif. Under¬
writer—Waldron & Co., San Francisco 4, Calif.

efforts*

at the rate of

fice—1250 Wilshire

"best

to be. offered for the

associated with Grimm &

mon

tain selling stockholders.

Expected

Dec. 30,

Corp., New York,

100,000 shares of common

Richwell

Telephone & Telegraph Co.

rights will expire

Corp.

June 26 filed 1,998,716 shares of common stock ,(par $1).
Of this stock, 1,174,716 shares are to be sold on behalf of
the company and 824,000 shares for the account of cer¬

February.

shares held;

United

To repay bank loans and for wbrking capital.
Underwriter—Bache & Co., New York.

York.

Proceeds —For con¬

and 50,000 shares for the account Of a selling
stockholder. Price—To be supplied by amendment. Pro¬

Control
Of the 832,000 shares of
preferred stock (par $100) and 11,936,P35 shares of
stock (par $100) outstanding as of Oct.
24, 1958,
there were owned by the American Telephone & Tele¬
graph Co. 640,957 preferred shares and 10,790,943 com¬

Proceeds—For capital expenditures.

William

and first three months' operational

New

Vonly in the State of North

share.

Office —Saskatoon, /Saskatchewan,

derwriter— None.

Price—To be supplied by

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex.

Co.,

per

Price—At par ($100 per share). Proceeds—To
repay ad¬
vances from American Telephone & Telegraph Co.
Un¬

and

Office
St., Fredericksburg, Va.
Underwriter—
Kidder, Peabody & Co., Inc., New York.

—403

stock (par $1.50)

company

Oct. 24 filed 1,594,604 shares of common stock
being
offered for subscription by holders of
outstanding com¬
mon and
preferred stock of record Nov. 26, 1958 on the
basis of one new share for each
eight common or pre¬

Dec. 4 filed $200,000 of 6% subordinated income deben¬
tures due Jan. 15, 1984, and
40,000 shares of common
stock

—$3

* Resistoflex Corp.,

50,000 Shares

Oppenheimer Fund, Inc.
Dec. 5 filed 100,000 shares of
capital stock. Price—At
market (about $10 per share).
Proceeds—For invest¬
ment. Office—25 Broad
St., New York. Underwriter—

common stock
(no par).
only to bona fide residents

Israel

Dec. 24 filed

Inc.,'; New Orleans, La.

common

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. Underwriter — Citrus Securities Co.,
Orlando, Fla. • ?■'1
''/Vy/'''-y? y y y / -1 .•

For capital expenditures. Underwriters —
Ripley & Co., Inc. and Wood, Gundy & Co.,

Inc., both of New York.

July 1 filed 100,000 shares of
of Montana.

?.Vy;n

convertible

—^

Harriman

For

Realty & Theatre Ventures, Inc.
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—50 Broad
St., New York, N. Y. Underwriter—Willis E. Burnside
V& Co., Inc.,aNew York.
V /
•
•
•••;?
: ?

(Province of), Canada/(1/14)
Dec. 22 filed $75,000,000 of 25 a
year debentures
due
Feb.. 1, 1984.
Price — To be supplied by amendment.
Proceeds

pre¬

—

Nov.

★ Ontario

Montana Power Co.
offered

Hialeah,
11 Fla¬

common

writer—Assets Investment Co.,

unit. Proceeds
Underwriter—None.
per

basis.

debentures
stock (par 10 cents); Price
and stock at $3 per share. Pro¬

250,000 shares of

Price

purpose.

—Rassco

Oil, Gas & Minerals, Inc. •
notification) 116,000 shares of common
(par 35 cents).
Price—$1 per share./ Proceeds—
For development of oil and
gas properties.: Office—ol3
International Trade Mart, New Orleans 12, La.
Under¬

body & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
tanoon (EDT) on -Aug. 26 at Room
2033, Two Rector St.,
New York, N. Y., but company on
Aug. 22 again decided
to defer sale pending improvement in market conditions.

$250,000 .of 51/2%

Inc.,

„

June 26 filed $1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denomination®
of $500 and $1,000. Price—At par. Proceeds—For work¬
ing capital and general corporate purposes/ Underwrite®

stock

'able bidders: Halsey, Stuart
gc Co. Inc.; Lehman Bros.;
Merrill Lynch, Pierce, Feriher & Smith, and Stone &
.Webster Securities Corp. (jointly);
White, Weld & Co.;
Eastman Dillon, Union Securities &
Co.; Kidder Pea-

$500 debenture and five shares

Price—$1,000

Rassco Financial

Office—

debt.

Securities, Ltd., both of Saskatoon, Canada.

Nov. 16 (letter, of

writer—To be determined bjt-Gompetitive
bidding. Prob-

Canada. Underwriter—Allied Securities Ltd., and

Underwriter—

& Associates,

Industries, Inc.
filed

stock.

struction

—375 Park Ave., New
York, N. Y. t Underwriter—Harris
Securities Corp., New York, N. Y., on a best efforts basis.

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds — Together with.plher funds, to be used to
repay $15,500,000 in;bank?loans and to/carry on..the
company's construction, program through 1959, Under¬

will

units

Dakota.'1

—Debentures at 100%
ceeds—To purchase a textile
mill, machinery, equipment
and raw materials, and to
provide working capital. Office

Price—$1

Proceeds — For" additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.

per share.

The stock

Colo.

;

debentures, series A, due Dec. 1, 1968 to be offered

residents of the United States

Oak Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of common
stock (par $1). Price —
$3 per share. Proceeds
For
working capital. Office—11 Flamingo Plaza,

Underwriter —Henry
mingo Plaza, Hialeah, Fla.

capital.
Street^-^ew York 36, N. Y. Under¬
writer—C. H.
Abraham.&_£^wnc., 565 Fifth Ave., New
York 17, N. Y.
'??****

Montana Power Co. ;

Littleton,

Fla.

working

common stock.

of the company's

Ave.,

to be offered for sale to residents of Canada in the Prov¬
inces of Manitoba, Saskatchewan and Alberta and to-

—

Office—55 West 42nd

-A- Millsap Oil & Gas Co.
Dec. 23 filed 602,786 shares~o£

service part

Grande

None.

Underwriter—None.

Military Publishing Institute, Inc.
Dec. 9 (letter of notification)
125,000 shares of common
stock (par 5 cents).
Price—$2 per share. Proceeds—
For

Rio

Prairie Fibreboard Ltd.

System, on an alternative basis. Proceeds—Of the
public
offering, will be used for additional working capital

thereof in eight years;
thereof in 10 years.
Price — At face amount" .(in denominations of
$100).
Proceeds—For working capita). Office—739 Johnson
St.,

Aug. 18 filed 209,993 shares of

31, 1974 and $123,000 of 7% debentures due on or before
May 6, 1965. The company proposes to make a
public
offering of 25,000 shares of common stock at
$10 per
share.
The remaining shares and the debentures are
subject to an exchange offer between this
corporation
O. K.
Rubber, Inc., and O. K. Ko-op Rubber Welding

Underwriter—Mary¬

Trading Corp., Bayonne, N. J.

Ponce de Leon Trotting Association, Inc. y
-i
Aug. 7 filed 650,000 shares of common stock (pa? on<e
cent). Price—$1.50 per. share. Proceeds—To pay ciarent
liabilities, for new construction and working capiiaL
Office—Bayard, Fla.
Underwriter—Robert L. Ferman
Co., Inc., Miami, Fla. Statement effective Dec. 17. y?

pre¬

\"w

•

Miami, Fla. Underwriter—Cosby & Co.,
Clearwater, Fla.
★ O. K. Rubber Welders, Inc.

ferred stock (par $3.50). Price—$5
per share. Proceeds—
For construction of a marina. Office — Room

filed

ferred

Dec.

Mid-Atlantic Marina, Inc., Baltimore, Md.
(letter of notification) 60,000 shares of 7%

Oct. 28

general corporate purposes.

Nov. 24 (letter of
notification) 600,000 shares of common
■stock (par 10 cents). Price—50
cents per share. Proceeds
—For working capital. Office—20th
Avo~ N. W. 75th St.,

Jan. 15, 1959 (with an
—$1.40 per share. Proceeds*/- To reduce bank
loan;
to increase working capital and for
general corporate
purposes. Office—617 W^h'Street, Los
Angeles, Calif.
Underwriter—None.
•* -

Corp., New York, and
;
•
;

10,000 shares of $8 cumulative preferred
stock, series A (par $100) and $1,000,000 of 8% subordin-

Nylonet Corp.

held; rights to expire
oversubscription privilege). Price

Boston

Option Plan for Key Employees. ;

(par 10 cents). Price—-$1 per share. Proceeds—
For acquisition of additional
gas and oil interests and
corporate administrative expenses.
Office—150 Broad¬
way, New York 38, N. Y. Underwriter — Greenfield &
Co., Inc., New York 5, N. Y. Statement effective Dec. 15.

(letter of notification) 159,395 shares of common
(par 25 cents) being offered for subscription by

First

★ Philips Petroleum Co.
See Astrodyne, Inc., above.

(1/6)

notification) 300,000 shares

stock

„

stock

the

one

Co., New

stockholders of record Nov.
24, 1958 on the basis of
new share for
each five shares

20,000 shares of common stock to be of¬
fered pursuant to the
company's Employees Stock Pur¬

The

—

Co., Philadelphia, Pa.
★ Perkin-Elmer Corp.

for each

Merchants Petroleum to.
Oct. 8

Dec. 18 filed

derwriters

ers

Mechmetal-Tronics Inc. (1/12)
Nov. 24 (letter of
notification) 90,000 shares of common
stock (par 20 cents).
Price—$2.75 per share. Proceeds—
For payment on contract to
purchase invention; research
and development
expenses; and working capital. Office
—c/o Virgil F. Every, 20 Lexington
Avenue, Rochelle

Park, N. J. Underwriter
York, N. Y.

Drexel &

share for each old share held of record Dec.
23,
1958 which will be made

shares held. Rights
expire on Dec.
Unsubscribed shares to the public.
Price—$40
per share.
Proceeds
For capital and surplus of the
company. Office—10 South
Street, Baltimore, Md. Un¬
derwriter—None.

29, 1958.

Routh

Robbins Investment Corp. y.

Nedow Oil Tool Co.

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988.
Proceeds—To redeem a like amount of 5% first mort¬
gage bonds due 1987.
Underwriter—To be determined,

May 5 (letter of notification) 150,000 shares of common
stock (par oiie cent). Price—$2
per share. Proceeds—To
pay loan; to, acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment
Co., Inc.,
Houston, Tex. *
*

•

Networks Electronic Corp. (12/29-30)
(letter of notification) 150,000 shares of common
stock (par 50 cents).. Price—$2 per share.
Proceeds—
To be used for development of new
Dec. 8

engineering proj¬
ects; purchase of 10 acres of land, and the balance will
be used for working capital. Office—14806 Oxnard
St.,
Van Nuys, Calif.
Underwriters—Holton, Hull & Co., Los
Angeles, Calif, and Pacific Coast Securities Co., San
Francisco, Calif.
'
New Jersey Investing Fund, Inc., New York
9 filed 200,000 shares of capital stock.
Price—At
market. Proceeds—For investment. Investment Adviser
'

Dec.

and

Distributor—Spear, Leeds & Kellogg, New York.

Northern Insurance Co. of New York (12/31)
Dec. 5 filed 145,200 additional shares of
capital stock

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; White Weld &
Co.;
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman

Sept. 22 filed $1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of comrhpn stock.
Price—Of

debentures, at par (in units of $100 each)i
stock, $1 per share, Proceeds — For investment#,
working capital. Office—Alexandria, Va./ Uhdej-s

and of
'

arid

writer—None.
_

St.

Regis Paper Co.

Brothers, Eastman Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmann
(jointly); Merrill Lynch, Pierce, Fenner & Smith

Dee.

and

Regis common for each share of capital stock of 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.
V

& Co.

Dean Witter

Co.

(jbintly). Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT)
on Aug.
27 but company on Aug. 22 decided to defer
sale pending improvement in market conditions.
•

Pennsylvania Power & Light Co.

(1/7)

Dec. it filed 295,841 shares .pf 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
one
new share for each 20 shares
then held; rights to
expire on Jan. 26. Employees will be given a contingent
mon

subscription privilege.
ment.

Price—To be supplied by amend¬

11 filed 288,450 shares of common stock, to be of-y

fered in

exchange for outstanding shares of capital stock/
on the basis of 2*4 shares of Sty

of F. J. Kress Box Co.

San

Diego Gas & Electric Co. (1/8)
4
$15,000,000 of sinking fund debentures duo-:
15, 1984. Proceeds—Toward the cost of additions?
to utility property. Underwriter—To be determined by?
competitive bidding. Probable bidders: Halsey, Stuart/
Dec. 8 filed

Jan.

Proceeds—To be added to the general funds of the

company

and

used

for general corporate purposes. Un¬

Continued

page

The Commercial and Financial Chronicle

(2730)

Continued

from

page

Fla.

& Co. Inc.; White, Weld & Co. and Shields & Co. (joint¬
ly); Salomon Bros. & Hutzler, Kuhn, Loeb & Co. and
American Securities Corp.
(jointly); Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fenner & Smith (jointly); Lehman Brothers; Blyth & Co.,
Inc.; The First Boston Corp. Bids—To be received up
to 8:30 a.m.; (PST) on Jan. 8 at room 1200, 111 Sutter

exchange for all of the
of Silver State
capital
Agency, Inc., both of

of capital stock

stock, to be of¬
45,000 outstanding shares
Savings & Loan Associa¬
stock of Silver State In¬
Denver, Colo.

surance

if Seiberiing Rubber Co. (1/19)
Dec. 23 filed
106,841 shares of common
offered to

common

each

for

stockholders

four

held

stock

Jan.

19,

1959; rights to expire on Feb. 4. Price—To be supplied
by amendment. Proceeds — Together with a proposed

$3,000,000 term loan, will be used for general corporate
including working capital. Underwriter—East¬
Dillon, Union Securities & Co., New York.

purposes
man

Service Life Insurance Co.

Sept. 26 (letter of notification) 3,567 shares of common
(par $1). Price—$18.75 per share. Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,
stock

Fort Worth, Tex.
ton, Tex.

Underwriter—Kay & Co., Inc., Hous¬

Office

Proceeds—For investment.

—

1033-30th

St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment Fund Management Corp.
•

Sheraton Corp. of America

Oct. 24 filed $26,500,000 of 7 V2 % capital income sinking
fund debentures (reduced to $25,000,000 by amendment
filed Dec.

17), $1,000,000 of the new debentures are to
to company employees at an offering price
equal to 98% of principal amount. The remaining $24,000,000 of debentures will be offered for public sale at
be

offered

100%

of principal amount.

Proceeds—For general cor¬

including the financing of the cost of
acquisitions and new construction. Underwriters—

porate purposes,
any

Paine, Webber, Jackson & Curtis, Boston, Mass. and S.
D. Lamb & Co., Buffalo, N. Y.
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. (1/5-9)
Dec. 4 filed 200,000 shares of common stock (par 20 cents).

Price—$3 per share. Proceeds—To purchase equipment, in¬
crease present inventories, and for
working capital. Of¬
fice—150 Glen Cove Road Carle Place, N. Y. Under¬
writer—None, Arnold Malkan, President, located at 565
Fifth Avenue, New York 17, N.
Y., will subscribe for
100,000 shares if other 100,000 shares are sold publicly.
•

Sire Plan of

Elmsford, Inc., New York (1/7)
Nov. 10 filed $250,000 of 6% 10-year debentures and
5,000 shares of 6% participating preferred stock
(par $50)
to be offered in units of
of preferred stock.

$50 debenture and one share
Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
Inc., New York.
Slick Oil

Dec.

filed

corporation's

Corp., Houston, Texas
$1,500,000 of participating interests in the
joint

venture

to be offered in
minimum amounts of
$15,000, payable 20% down and
the balance upon demand
during 1959. Proceeds—To
assemble and acquire interests in Canada
and Conti¬
nental

United

States.

program,

Underwriters—Rowles, Winston

Co., Houston, Tex., and Dewar, Robertson & Pancoast, San Antonio, Tex, Offering — Expected early in
January.
• Smith-Corona Marchant, Inc.
Dec. 24 filed $7,443,100 of convertible
subordinated
common

determined

Probable bidders:

—

de¬

1, 1979 to be offered for subscription
stockholders on the basis of $100
principal

Arenas

Sports

share).

per

Proceeds—To selling stockholders. Office
Neck, N. Y. Underwriter—

None.

^dpur Oil Co. (1/12-16)
Dec. 15 filed 1,000,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To¬
gether with $6,500,000 of borrowings, will be used for
the acquisition of Spur Distributing Co., Inc., and for
general corporate purposes. Office—Eighth Ave. South
and
Bradford Ave., Nashville, Tenn.
Underwriter —
Equitable Securities Corp., Nashville, Tenn.
Life, Health & Accident Insurance Co.
July 9 (letter of notification) 50,000 shares of commoD
stock (par $1).
Price—$5 per share. Proceeds—To be
invested in stocks and bonds and to acquire other life
insurance companies. Address—P. O. Box 678, Gulfport
Miss. Underwriter—Gates, Carter & Co., Gulfport, Miss

111

stock.

Underwriter—Allen

Investment

(1/8)

480,000 outstanding shares of class A

com¬

Price—To be supplied by amendment.

Pro¬

filed 280,763

stock, of which
subscription by
stock of record Dec. 31,

of common

There

amendment.

and the balance for construction
program.

? Co> Chicago, 111.,

Co., Omaha, Neb.

Price

—

shares of

Underwriters

and Smith, Polian &

^ Southern California Water Co.

2?«c* 22

de¬

Proceeds—To retire short-term bank loans

fitter

(1/13-15)

common

stock

(par $5).

To be supplied by amendment.
Proceeds

selling stockholders. Underwriters—Dean Witter &
Chicago,. 111., and Smith, Polian & Co.,
Omaha, Neb.

To
Co

if Southern Gulf Utilities, Inc.
Dec. 15 (letter of notification)
127,659 shares of common
stock (par five cents).
Price—$2.35 per share. Proceeds
—For payment of loan and
account

Working capital.

payable;

Office—6930 N. W. 27th
Ave.,

ord

are

offered

for

company's common
the basis of three new shares for each share to

Dec.

1958

a distribution to stockholders of rec¬
of American Machine & Metals, Inc.

will be
an
oversubscription privilege. Rights
expected to expire on Jan. 16. The remaining 2,720

shares
per

are

share.

and

for

Miami,

(

Nov. 10

America, Inc.

(letter of notification) 21,500 shares of common

(par $1.50). Price—To be supplied by amendment
(approximately $2.25 per share). Proceeds — To repay
bank loan; reduce accounts payable; acquire
inventory and the balance for working capital. Under¬
writer—Paine, Webber, Jackson & Curtis, New York,
stock

short term

Washington Water Power Co. (1/7)
!^*
$15,000,000 of first mortgage bonds due 1989."

Dec. 9 filed

Prite—To-be 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

+ Wen

Inc.

Wood Organizations,

(letter of notification) 100,000 shares of common
stock (oar 25 cents).
Price—S3 per share. Proceeds—
For land development and home construction in Florida;
Dec. 18

Proceeds—For working capital.

Price—$1
Underwriter

(1/5-9)
Dec. 12 filed 1,000,000 shares of capital stock, (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes. Office—132 St. James Street
West, Montreal, Quebec, Canada.
Underwriter—Allen
& Co., New York.

Employees

Insurance

operating properties, real and /or personal, includini
office furniture, fixtures, equipment and office space, b7
lease or purchase. Office — Wilmington. Del. Under
writer—None.
President.

Myrl

McKee

Portland,

★ United Pacific Aluminum Corp.
Dec. 18 filed 100,000 shares of common stock.

Ore.,

share. Proceeds
To purchase an additional cold
rolling mill and for general corporate purposes. Office
—5311 Avalon
Blvd., Los Angeles, Calif. Underwriters—
—

$20, $50, $60, $100 and $1,000 each. Price—At par. Pro¬
ceeds—To strengthen capital position. Office—1525 East
D
•

Underwriter—None.

St., Tacoma, Wash.
West Ohio Gas

Co.

37,615 shares of common stock (par $5) be--

ing offered for subscription by common

stockholders of

the rate of one new share for each
shares then held; rights to expire on Jan. 9. Price—

record Dec. 6, 1958, at
10

$15

share.

per

Office—3*9
None.

Proceeds

West

Market

—

For

St.,

construction

Lima,

program.
Underwriter—

Statement effective Dec. 15.

Inc.
'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¬
fered at $3 each.
Proceeds—For general corporate pur¬
poses.
Office—151 Adell Avenue, Yonkers. N. Y. Un¬
derwriter—Edwin Jefferson. 39 Broadway, New York 6,
N. Y.

Price—$8

Rockefeller Plaza, New York, N

ic West Coast Grocery Co.
Dec. 11
(letter of notification) $50,000 of 6% 10-year convertible debentures to be offered in denominations of

Wilier

Co.

April 16 filed 2,000,000 shares of common stock (par $5j
Price — $10 per share. Proceeds — For acquisition o'

per

Inc., 30

Nov. 17 filed

—None.

United

general corporate purposes.
Office—62 ThinL
L. I., N. Y. and 2259 Bee Ridge Road,;
Fla.
Underwriter—Michael G. Kletz & Co.,.

for

Sarasota,

to be offered to certain employees.

^ United Asbestos Corp. Ltd.

supplied

Ave., Mineola,

Mining Co.

^Southern California Edison Co. (1/19)
Dec. 24 filed 500,000 shares of
common stock (par
$25).
Price—To be supplied by amendment.
Proceeds
To re¬
pay bank loans and for construction
program.
Under-

-Ar Southern California Water Co. (1/13-15)
Dec. 22 filed $2,000,000 of
convertible subordinated
bentures, due Jan. 1, 1979. Price—To be

if Vita Food Products, Inc.
16 (letter of notification) 12,000 shares of common
stock (par 25 cents) to be offered as part of the con¬
sideration to be paid by the company for Mother's Food
Products, Inc. Proceeds—To Jesse C. and Bernard Good¬
win. Office—644 Greenwich St., New York, N. Y.
Un-~
derwriter—Granbery, Marache & Co., 67 Wall St., New
York, N.;Y.

and

following

New York; and Dean

Iowa

Dec.

Trout

Dec.

1958, on
be held

Co., San Francisco, Calif.

Co., Newton,

filed

To selling stockholders.
Office —■ 2700 North
St., Chicago, 111. Underwriter—Dempsey-Tegeler
Co., St. Louis, Mo.
—

^r8-rT£e fIrst Boston CorPWitter &

—

N. Y.

Halsted

•

50,000 shares of common stock. Price—
$9.25 per share. Proceeds—For working capital. Under¬
writers—T. C. Henderson & Co., Inc., Des Moines, Iowa,
and Quail & Co., Inc., Davenport, Iowa.
.

E. Main

Co., Boulder, Colo.

each 25

Vernon

Nov.

Mart, Inc., Boulder, Colo.
Nov. 10 filed 500,000 shares of common stock (par $5).
Price—$10 per share. Proceeds—For working capital and

ceeds

York, Inc.

(letter of notification) 300,000 shares of capital
At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
.& Co., Inc., Rochester, N. Y.
^
Price

stock

Tower Merchandise

mon

May 6

Corp., Morristown, Tenn.

18 filed

by amendment.
Ore., is Pres¬

;

Vocaline Co. of

—

stock(par
supplied by amendment .(ex=Proceeds—For exploration

share).

per

Utah Gil Co. of New

Underwriter—Valley Securitie»

if Tractor Supply Co.

Price—To be
be $1

.City, Utah.

(letter of notification) 27,272 shares of 70-cem

Dec.

(letter of notification) 900,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
: —For
mining expenses. Office—305 Main St., Park City,
-Utah.
Underwriter—Walter Sondrup & Co., Salt Lake

cumulative preferred stock (par $5) and 27.272 share*
of common stock (par 10 cents) to be offered in uniti
of one share to each class of stock. Price—$11 per unit

program.

Corp.

Corp. of America, Portland, Oro.

Utah Minerals Co.

Underwriter—Peter Morgan & Co., New York.

construction

cents).

pectea

Timeplan Finance Corp.

Office

Chemical

April 11

ities and for drilling and exploration costs and working

working capital

ident.

Surrey Oil & Gas Corp., Dallas, Tex. (1/15)
12 filed 300,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—To retire current liabil¬

For

Glass

purposes.
Underwriter—To be named
.Graham Albert Griswold of Portland,

Nov.

holders

for

Strategic Minerals Corp. of America, Dallas, Tex
$2,000,000 of first lien mortgage 6% bond;
975,000 shares of common stock (par 10 cents). Pric«
—For bonds, 95% of princmal amount; and for stock $5
per share. Proceeds—To erect and operate one or mor«
chemical processing plants using the Bruce - Williami
Process to beneficiate manganese ores.
UnderwriterSouthwest Shares, Inc.. Austin. Texas.

—

States

Uranium

March 31 filed

St., Morristown, Tenn.

for

April 30,1957 filed 1,250,000 shares of common
-16

and

Proceeds

contracts

Smith, New York.
United

State

March 25

sales

Office—Tiffin, Ohio. Underwriter—None.

Great Neck Rd., Great

capital.

conditional

prepay

Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds — To selling stockholders.

of common stock (par one
Price—At the market (but in no event less than

278,043

of debentures

Inc.

(Delaware)

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

18 filed 461,950 shares

—33

filed

used

None.

Nov.

United States

Freight Co.
203,897 shares of capital stock (no par)
being
offered
for
subscription
by
stockholders
of
record Dec.
18, 1958, at the rate of one new share
for each four shares held, rights to expire on Jan.
pj
Price
$35 per share. Proceeds — Some $750,000 will

Arenas
(Delaware)
Inc.
Nov. 18 filed $2,000,000 of 6% 10-year convertible de¬
bentures (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-

shares of stock held.
Price—To be supplied by amendment.
Proceeds—To re¬
duce bank loans and for
working capital. Underwriter
■—Lehman Brothers, New York.

amount

•

Nov.

Underwriter—None.

bentures due Jan.

Co.
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¬
cies, and to pay the necessary expenses in producing
insurance.
Office—Louisville, Ky. Underwriter—None.
Edmond M. Smith, is President.
-

if Spencer Laboratories, Inc.
Dec. 18 (letter of notification) 3,000 shares of class A
capital stock (no par). Price—$100 per share. Proceeds
—For corporate purposes.
Office — Morristown, N. J.

cent).

Shares in America, Inc., Washington, D. C.
Dec. 12 filed 50,000 shares of common stock. Price—At
market.

United Security Life & Accident Insurance

Sports

about

Los

Aug.'22 filed

the basis of one new

Underwriter—To

bidding.

Fox,

New York, and Stern, Frank, Meyer
Angeles, Calif. Offering—Expected about
the middle of January.
•

Co.

Halsey, Stuart
Inc.; Blyth & Co., Inc., and Kidder, Peabody &
Co. (jointly); The First Boston Corp. Bids—Expected to
be received up to 11 a.m. (EST) on Jap. 20 in Room 1130,
90 Broad St., New York, N. Y.
competitive

Imperial Corp., San Diego, Calif.

tion and 3,000 shares of

construction.

new

Thursday, December 25, 1958

Blair & Co.,

Inc., New York, N, Y.

time in January.

-A-Southern Natural Gas Co. (1/20)
$35,000,000 20-year first mortgage pipe line
bonds due 1979,, Proceeds—To repay bank loans and for

Dec. 9 filed 845,000 shares of common
fered in

some

Dec. 18 filed

St., San Francisco 4, Calif.
San Diego

Underwriter—Ross Securities,

Offering—Expected

Color Television

System,

Statement effective Nov. 18.

Wilmington Country Club, Wilmington, Del.
Oct.

terest

$25)

filed

$500,000 of debentures due 1991 (non in¬
and 800 shares of -common stock (par

bearing)
to

offered

members

this

club

and

Volume

188

Number

5806

The Commercial and Financial Chronicle

(2731)
Concord Ltd.

Price—$375 per

debenture.

per

build

certain

share and $1,000

common

Proceeds

To "develop property
Underwriter—None. 1 • ■

facilities.

and

★ Winter a-ark

v
esephone Co.
(letter of notification) 7,365 shares of common
stock (par $10) to be offered to directors
and employees
under Employees Deferred Profit
Sharing Plan, Trust.
Price—96% of market price. Proceeds-—For
extensions,
additions and improvements.
Office -^132 East New
England Ave., Winter Park, Fla. Und&rwriter-r-None.

Dec.

Woocviaiiui & Lotmop Inc.
9

(1/8)
:
50,000 shares of common stock (par $10)
be supplied
uy
amendment;
Proceeds—foi

filed

Priee^-To

cnandize

Unuerwriter—Alex

brown

Baliimoic, Md.
■,

■

17 filed

Wyoming Corp. '/•

Nov.

Of these

Nov.-1, 1958, in the ratio of

share for each 2.33 shares

held

that date.

one

Price—$4

share. Proceeds—$300,000 will be used for.
payments
contract to purchase shares of International
Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance
company; $500,000 for capitalization of a title insur¬
on

tion

capital contribu¬

Co.; and $300,000

additional capital contribution to Great Plains Mort¬
Co. Office—319 E. "A" St.,

gage

Casper, Wyo.

Under¬

writer—None.

ir Yellowstone National Life
Dec.

Insurance Co.

(letter of notification) 7,379 shares of class A
stock (par $10) and 7,511 shares of class B com¬
mon stock
(par $1) to be offered in units of nine shares
of class A stock and 10 shares of class B
stock. Price—
unit.

per

counts.

Proceeds—For

Address—P.

writer—None.

Box

surplus

and

capital

"' Acme

„

ac¬

Rexburg, Idaho. Under¬

will

about

and sale

bonds.

was

Lynch.

Pierce.

that

announced

Proceeds

Fenner

(4/30) -'7the

Smith

company

plans

the

$20,000,000 of 30-year first mortgage
—

For

construction

program. -Under¬

writer—To be determined by competitive
bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Lehman Broth¬

Eastman Dillon, Union

ers;

Securities & Co., Equitable

Securities Corp. and Drexel &

Co./(jointly);„Harriman

Ripley & Co., Inc. and Goldman, Sachs & Co: (jointly);
Morgan Stanley & Co.; Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); The First Boston Corp. Regis¬
tration—Planned for April 3.
ceived

★ American Natural
Dec.

Gas

Co.

announced

was

that

re¬

additional shares of

common

;

the

coAlpany has filed

for the

application with the SEC

Bids—Expected to be

April 30.

issuance of 486 325

stock

(par $25) in the early

months of 1959 to stockholders under
rignts on the basis
of one new share for each 10 shares held

(with

over¬

subscription-privilege). Price—To be determined just
prior to offering.. Proceeds—To be used as-the equity
base for the
of

system

financing of substantial

companies.

Co.

The

and

First

Drexel

Boston

expansion programs

Underwriter—To

by competitive bidding.
&

determined

Probable bidders: White, Weld

Co.

(jointly);

Blyth &

Co.,

tration

was

Corp.

reported

that the company plans regis¬
250,000 shares of common stock.

January of

Underwriter—

(pruttenden, Podesta & Co., Chicago, 111.
★ Avco Manufacturing Co.
Dec. 15 it was reported that the

The First Boston Corp.; Morgan Stanley
Equitable Securities Corp. and Eastman

company

—

it Chicago & North Western Ry.- (1/6)

Co. Inc.; Salomon Bros. & Hutzler.
Gas

System,

Inc.

was reported that the company may issue and

additional

common

stock

the

first

half

1959.

proceeds—To repay outstanding bank loans. Underwriter
•—To

bidders:

determined

by competitive bidding.

Probable

Lehman

Brothers and Eastman Dillon, Union
(jointly); Merrill Lynch, Pierce, Fen¬
& Smith, White, Weld & Co., Shields & Co. and R.
W. Pressprich &' Co. (jointly); Morgan
Stanley & Co,

Securities & Co.
ner

Pacific Tea

and sell

Denmark (Kingdom of)
Sept. 2 it was reported that an issue of between $20,000$30,000,000 may possibly be placed on the Ameri¬
_

market this year.

Underwriter—Kuhn, Loeb & Co.,

New York.

•

Equitable Gas Co.
July 18 it was announced that the

to be sold for the account of selling
expansion. Underwriter—

Proceeds—For

company

expects later

in the year to issue and sell additional securities, prob¬

ing—Expected

day.

any

mortgage

approximately $5,000,000
of additional funds. Proceeds—Together with
$7,000,000
from private sale of 4%%
bonds, to repay short-term

and

American

projects, etc.
New

Co., Inc. Offer¬

unsecured

notes

and

stock.

common

$111,»

000,000.
Underwriters — Stone & Webster Securities
Corp. and White Weld & Co., both of New York.
(6/25)

10 it was announced that this company plans to
issue and sell $5,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program. Underwriter—To
be
.

determined

by 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¬
tration—Planned for May 29. Bids—Expected to be re¬

ders:

ceived

June 25.

Mobile Gas Service Corp. (1/22)
* k
Dec. 12 it was announced that the company

plans

offer to its stockholders 33,000 additional shares of
stock

mon

(par $5)

each 10 shares held

The

First

the basis of

on
on

one

about Jan. 22:

new

com¬

share for

Underwriters—•

Boston

Corp., New York; and RobinsonHumphrey & Co., Atlanta, Ga. Registration—-Expected
about Dec. 30.

Proceeds—For

public works

Financial Adviser—The First Boston

Corp.,

York.

program. Underwriter—To be determined

Co.

bidding.

Probable

bidders:

Inc.; Kidder, Peabody & Co., and

Halsey
Merrill

Lynch, Pierce, Fenner & Smith
(jointly); LehmaD
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp.
(jointly); Glore, Forgan & Co., and Goldman Sachs & Co. (jointly).
Feb.

Power

was

plans to issue and
Pro¬

construction-program. Underwriter—To be
determined 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.; Eauitable Securities
Corp

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering refinancing
$790,000 of outstanding notes ($658,750 held by a principal
stockholder and $131,250
nent basis.
This may be

bank) on a more perma¬
done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬
ton, Mass.

Manufacturers & Traders Trust Co.

before

Dec.

for

322,388

shares of capital stock (par $5) at rate of one new share
for each six shares held. Price—$24 per ^ihare. Proceeds

increase

Boston

capital and surplus.

Underwriter

—

The

Corp., New York

Master Fund,
was

Inc., Fairfield, Calif.
this newly organize^

announced

it
on

shares
Jan.

six

announced

was

that

—

(1/23)

stockholders

will

vote

approving the proposed offering of about 80,of

common

23,

1958,

stock

stockholders

record

the basis of one new share for
held; rights to expire on Feb. 16.

then

Price—$50 per share. Proceeds—To increase capital and
surplus. Underwriter—Clark, Dodge & Co., New York.
New

York

March 7 it

State

Electric and

Gas

Co.

announced that

approximately $7,500,000
from additional financing will be required for construc¬
tion expenditures for the balance of this year. The man¬
agement intends to negotiate a new line of credit with a
group of banks and expects to sell equity securities later
this year or in early 1959, depending upon prevailing
was

market conditions. Underwriter—For any common stock:

The First Boston Corp., New York.

Dec. 1 it

was

announced that the company

plans

an of¬
$10 per
Proceeds—To increase capital and surplus. Un¬

fering of 950,000 shares of capital stock.
share.

Equitable Life Assurance Co.

derwriter—John M. Tait &

Price

—

Associates, Cincinnati, Ohio.

North American Van

Lines, Inc.
Nov. 20, James D. Edgett, President, announced com¬
pany plans early in 1959 to make a public offering of its
stock, and has applied to the Interstate Commerce Com¬
mission for authority to do so.
•

Northern

Dec.

Illinois

Gas

Co.

reported that the company will sell in
$35,000,000 of new securities, including some
first mortgage bonds, in addition, there is a possibility
of a preferred stock issue and raising of some funds
through common stock financing, "perhaps in the form
was

1959 about

Dec. 3 bank offered to its stockholders of record Dec.

First

North American

company

$10,000,000 of first mortgage bonds due 198S.

000

Light Co.

announced

ceeds—For

^ National State Bank, Newark, N. J.
Dec.

Jan. 13

each

Evans, Chairman, announced that com
pany plans to sell some bonds originally scheduled foi
mid-year. The proposed sale was subsequently deferred
until late 1958 or early 1959. Proceeds—About
$8,000,000
competitive

plans to issue and

Underwriters—Kuhn, Loeb & Co.

about

Kansas Gas & Electric Co.

for construction

announced company

Lehman Brothers, both of New York.
Offering
Postponed because of uncertain market conditions.

issue of between $25,000,000
may soon be publicly offered

market.

was

sell $24,000,000 of government insured bonds secured
by
i first preferred
ship mortgage on the liners S. S. Brasil
and S. S. Argentina.
and

$30,000,000 of bonds
the

Jan.

bonds,

Proceeds—To build pipe line system to cost about

March 24 it

Underwriters—

Japan (Empire of)
Aug. 20 it was stated that

secure

)

Moore-McCormack Lines, Inc.

(Mich.)

plans to issue

and sell 125,000 shares of common stock.
A. C. Allyn & Co.,, Inc. and Walston &

rights

—

year.

Interstate Motor Freight System, Inc.
Dec. 1 it was reported that the company

sell

mort¬

March 24 it was announced that this
subsidiary of
Tennessee Gas Transmission Co. has applied to the Fed¬
eral Power Commission for permission to issue first

Glore, Forgan & Co., New York. Offering—Not expected

—

ably preferred stock, to

Underwriter—To

program.

Heublein, Inc.

Midwestern Gas Transmission Co.

Mississippi Power Co.

Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which

this

Enterprises, Inc.

28, company announced it plans to issue
Dec. 31, 1958 $3,200,000 of first preferred

Dec.

April 2.

are

Halsey, Stuart & Co. Inc.; Morgan Stanley &

May be placed privately. Proceeds
repay bank loans and for working capital.
;

(4/2)

Equitable Securities Corp.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Blyth & Co., Inc. Registra¬
tion—Planned for March 6.
Bids—Expected to be re¬

100,000 shares

$1,000 debenture to carry a
buy 200 shares of common stock at $3 per

gage bonds.

Co., Inc.

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.;

stockholders.

reported that the company plans issuance
debentures due 1974 (with

warrants—each

Midland

$7,000,000 of 30-year first mortgage bonds. Pro¬

new

March

determined

ceived

one

Price—$26 per share.
surplus. Underwrit¬
Inc. and First Southwest

and

been tentatively scheduled to be re¬
Sept. 16, but on Aug. 26 it was voted to post¬
this refunding program because of present market

pone

construction

the basis of

held.

conditions.

announced that the company plans to issue

was

ceeds—For

000 to
can

Stores, Inc.

reported

Bids—Had

ceived

before

>Gulf Power Co.
Dec. 10 it

Kansas

Bids will be received by the company up to noon
(CST)
oh Jan. 6 for the purchase from it of $3,300,000
equip-,
merit trust certificates. Probable bidders: Halsey, Stuart

pec. 1 it

bidders:

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.

was

increase capital

share). Underwriters—Cruttenden, Podesta & Co., Chi¬
cago, 111., and Clayton Securities Corp., Boston, Mass.
Registration—Expected about mid-January.

Co.

Nov. 3 it

19 it

will

Michigan Bell Telephone Co.
Aug. 12 directors approved plans to sell $40,000,000 of
34-year debentures. Proceeds-^-To redeem a like amount
of 4%% debentures due November, 1992. Underwriter
—To be determined by competitive bidding.
Probable

Co.;
Dillon, Union
Securities & Co. (jointly); Harriman
Ripley & Co. Inc.
Registration—Planned for Aug. 14.
Bids—Expected to
be received on Sept. 10.
Giant Food

stockholders

$2,500,000 6V2%

warrant

(9/10)

ers;

attachable

announced that the company

was

stock

common

each

was

sale

and

plans to issue
and sell $18,000,000 of 30-year first
mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co. (jointly); Lehman Broth¬

Emanuel, Deetjen & Co., both of New York.

sell

approve

Smith, Oklahoma City, Okla.

Georgia Power Co.

Stuart &

is considering
the issuance' of about $15,000,000 of convertible deben¬
tures.
Underwriters
May be Lehman Brothers and

Columbia

the

March 31, G. W.

Proceeds—To go to selling stockholders.

stockholders

13, 1959. Price—$27 per share. Proceeds—To increase
capital and surplus. Underwriter—Merrill
Lynch, Pierce, *

Inc.;

^ Arnatd Altex Aluminum Co.
Lee.

the

authorizing the issuance of 12o,000 addi¬

^ Miami Window Corp.
Dec. 15 it

Jan.

that

one-for-six basis to stockholders of record Jan.

Dec. 10 it

for

that

announced

was

ers—Rauscher, Pierce & Co.,
Co., both of Dallas, Texas.

B^ank & Trust Co., Tulsa, Okla.

reported

was

vote

Fenner &

Proceeds—To

Alabama Power Co.

Dec.

10,

secondary offering of commor
voting stock is expected this year. Underwriters — May
include: Blyth & Co., Inc.; Lehman Brothers and
Smith,
Barney & Co.

Co.

Merrill

issue

Great Atlantic &

Steel

and

Jan.

March 21 it was announced that the
company plans aden v
tional financing this year, in the form of
common stock j
preferred stock, or a combination of the two,
including
bank loans.
Proceeds—For expansion
program, work
ing capital and inventories. Underwriters—Blyth & Co

Inc.

tional shares of

(1/13)
Nov.

Feb.

■

expire

First National

common

$300

★ Mercantile National Bank, Dallas, Texas.
Dec.

vote Jan. 20

held;
1959.Price—$40 per share.
Proceeds—To increase capital and
surplus. Office—931
Main Street, Houston 1, Texas.

new

per

company; $500,000 for additional
to Great Plains Development

less an underwriting discount of 8%%.
Proceeds—For investment.

Sept. 19 it was announced Bank plans to offer to its
stockholders of record Oct. 2, 1958 the
right to subscribe
for 125,000 additional shares of
capital stock (par $20)
on
the basis of one new share for each 10 shares
rights

avians Jo offer to bona fide residents of
10,09) shares of capital stock (par $1). Price

company

—$10 per shar

plan to offer
100,000 shares of additional capital stock (par $10) on

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

ment

California

City National Bank

Bank

;V.V:

stock.

common

Sons.

v".:v

7'"-

1,449,307 shares cf

ance

First

inventories, accounts receivable, and other

corporate purposes,

Underwriter*

Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White
Weld & Co., all of New York.

Dec.

met

bank loans and for construction
program.
—May be The First Boston Corp.;

convertible debentures."
Proceeds—For capital ex¬
penditures.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co.

Inc.; The First Boston Corp.; Glore, Forgan & Co.;
Blyth & Co., Inc.
•

Northern

Dec.

invest¬

States

Allen S.

Power Co.

King,

President,

(Minn.)

announced

Continued

that the
page

3ft

The Commercial and Financial Chronicle

Continued from page

to put out a
$15,000,000 preferred
satisfactory market. Proceeds—

stock issue if there is a

and for construction program. Un¬
competitive bidding.

To repay bank loans
derwriter

To be determined by

—

(1) For preferred stock: Blyth & Co.,
Inc. and The First Boston Corp. (jointly); Lehman Broth¬

Probable bidders

Fenner &

Co.

Bank of San Francisco

Pacific National

(1/13)

additional

of record Jan.

new

writers—Blyth &

that

announced

was

the

will issue

company

$25,000,000 of first mortgage bonds. Proceeds—To repay
bank loans incurred for construction program.
Under¬

about Sept. 30,

competitive / bidding,
Co. Inc.; Kuhn, Loeb
& Co.; The First Boston Corp.; Blyth & Co., Inc.; Glore,
Forgan & Co.; Harriman Ripley & Co., Inc. Bids—Ex¬
pected to be received on Feb. 17.
writer—To

determined

Mass.

Boston,

1959,

20,

York.

interim

4V4%

from Gulf States Land
1960. Underwriter

bonds

blower

due

Office

tions.

197

Auburn

Southern

Dec. 10 it

Co.

Pipe Line Corp.

that the company is planning

of $30,000,000 to $35,000,000 of

Proceeds—For construction program. Un¬

derwriter—White, Weld & Co. and Stone &
curities Corp., both of

Webster Se¬

financial

first step in the pro¬

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 Kingdom.'
The three institutions which are to head this syndicate ;
The Chase Manhattan Bank, The

First National City
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 $250,000,000. The purpose is to restore government balances
which have been reduced by the repayment of excessive1
short term obligations previously incurred.
1

Bank of New

Virginian Ry.
Aug. 26 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 4he basis
of $11.50 principal amount of debentures for each pre¬
ferred share. Offer began on Nov.-17 and will expire on
Jan. 16. Dealer-Manager—Harriman Ripley & Co. Inc.,
York.

Wisconsin Power
March 17 it

$30,000,000 of common stock in the latter part of
this year or in the first quarter of 1959, but this financ¬
ing may be put off until June, 1959. Proceeds—For con¬

(2/4)

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—May be determined by

competitive bidding. Probable bidders:

the Treasury may have in
for providing for its im¬

and

Electric debentures
issue for Washington

Co..!

mediate cash needs.

•

and sell

Light Co.

announced that company

plans to Issue
$18,000,000 of first mortgage bonds. Proceeds-—

was

Un¬
by competitive bidding.
Halsey,; Stuart & Co. Inc.; Smith,
Barney & Co. and Robert W. Baird & Co:, Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon; Union
Securities & Co. (jointly)1; White;,Weld & Co., Kidder,'
Peabody 8$ Co. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.
Offering—Not expected until
late

Aug. 18

Louis, Mo.

about

mind

1958

To be determined

early in

1959.

Worcester Gas

announced company plans to market

March 28 it was

plans

financial advisors to develop

gram a

New York.

Union Electric Co., St.

Ave., N. E., Atlanta, Ga.

announced that the company

was

for the country.

program

early

the
first
pipeline bonds. Additional financing expected

mortgage

Underwriter—None.

Kidder, Peabody & Co., both of New York, have

been selected

—

Proceeds—To expand opera¬

future.

near

Co. and

bidders:

later in 1959.

Fidelity Fire Insurance Co.
announced that the company in all prob¬

—

July 1 the Government announced that Kuhn, Loeb ft

Probable

sale early in January

ability will offer additional common stock to its share¬
holders in the

(Government off)

derwriter

Transcontinental Gas

Weeks, New York.
v/as

the / American

To retire bank loans and for construction program.

Dec. 8 it was reported

Southeastern

Aug. 26 it

Fund

Research

Underwriters—Expected to be Leh¬

Brothers, Smith, Barney & Co. and Merrill Lynch,

Venezuela

New

reported that the company plans

Society.

Proceeds—

January.

planning
—
To replace an
with the purchase
& Industries, and
—
May be Horn-

that the company is

long-term financing. Proceeds
loan obtained in connection

some

©f properties

was

Petroleum

State Su¬

York

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

Corp.
reported

was

Nov.

Underwriter—May be The First Boston Corp.,

South Coast

;

Thomas & Betts Co.

New York.

Oct.

Underwriter—Dillon, Read & Co. Inc., New

penditures.

additional 40,000 shares of

stock (par $10) on the basis of one new share
for each 6!a shares held. The offering period will last
for about two weeks. Proceeds—To increase capital and

surplus.

bank loans,

capital

New

Proceeds—To refund $30,000,000 of outstanding
and the balance will be used for capital ex-

stock).

it will offer its stockholders

announced

was

record Jan.

Bank of

dent, that the corporation plans to raise about $90,000,000 through the sale of new securities (tentative plans
call for the sale of bonds, debentures and preferred

(1/20)

Dec.

National

1958.

the

Pierce, Fenner & Smith, all of New York.

are

if Texas Eastern Transmission Corp.,
Dec. 11 it was announced by W. Hargrove, Vice-Presi¬

Probable bidders: Halsey Stuart &

★ Rockland-Atlas

Proceeds — To refund outstanding ;
$100,000,000 4%% debentures. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Of¬
fering—Has been postponed. Bids had been expected

(2/17)

Inc.

^ Public Service Co. of Indiana,

:/■ "/.V.;'

35-year debentures.

Francisco, Calif.

Dec.

•

July 10 it was announced Missouri Public Service Com¬
mission authorized the company to issue $110,000,000 oi

Under¬
Co., Inc. and Elworthy & Co., both of

three shares held; rights will expire on Feb. 3.
San

Bell Telephone Co.

Southwestern

share for each

13 at the rate of one new

Yv:

May 28.

man

with

rests

Court (expected within two months).

Chemical

issue

mortgage bonds.
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).- RegistrationPlanned for May 1. Bids—Expected to be received on

offering of 74,511
capital stock to stockholders

transaction

the

between $50,000,000 and $60,000,000. Appro-sal

run

the

preme

Proceeds—For

directors approved proposed

may

$25,000,000 of 30-year first
construction program.

sell

and

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.
Dec.

Universal Off Products'

Aug. 13 it was reported that an issue of common stock
will soon be offered to the public, the proceeds of which

(5/28)

announced that the company plans to

Dec. 10 it was

Dillon,

man

Generating; Co.

Southern Electric

(jointly); Merrill Lynch, Pierce,
Smith: Harriman Ripley & Co.. Inc. and East¬

Riter

and

ers

Lynch, Pierce, Fenner

competitive bidding.

stock issue and possibly a

common

program.

Lehman Bros.; Merrill
Smith..- ;V " •
J :'/v:
:

Shields & Co. <jointly)i

Co. and

Underwriter—To be determined by
Probable bidders: The First Boston
Corp.; Morgan Stanley & Co., Kidder, Peabody & Co
and Merrill Lynch, Pierce, Fenner & Smith (jointly),
Eastman Dillon, Union Securities & Co. and Equitable
Securities Corp. (jointly); Lehman Brothers. Bids—Ex¬
pected up to 11 a.m. (EST) on Feb. 4 at 250 Park Ave.,
New York, N. Y. Registration—Planned for Jan. 9.

struction

plans about the middle of 1959

company

•

."Thursday, December 25, 1958

(2732)

White, Weld &

•

:V,

->onds.

Proceeds—For

con¬

Underwriter—To be determined by
competitive blading. Probable bidders: Halsey, Stuart &
Co. Inc.; Estabrook
& Co. and Coffin & Burr, Inc.
(jointly); Kidder, Peabody & Co. and White, Weld &'
Co. (jointly).
struction program.

Performer Boat

Water Power
•

was

similar

Light Co.
reported that the company plans the sale

of stock outstanding after
giving effect to the current offer-,

Corp.

ing.

Common Stock Offered

Calendar Is Building

This

excludes 7,000 shares
for outstanding Em¬

.reserved

Stock 'Options.
R. A. Holman & Co., Inc., of
placed New York City, on Dec. 22 pub¬
TweWith Straus,Blosser >
currently more concerned with in registration in recent
days. licly offered 300,000 shares of
'(Special to The Financial Chronicle)
r,/.;,
rounding out their books for the Among these is a $75 million of¬ common stock (par 25 cents) of
CHICAGO,
111. — Donald
E.
year, rather than with picking up
fering projected by the Province Performer Boat Corp.. at $1 per
odds and ends of recent new issues, of Ontario, Canada, to be payable share on a best efforts basis.
M<oyeL Jr. and Nathan H. Rochwas evident from the behavior of
mes " are
now ' affiliated
with
principal and interest, in U. S.
Performer Boat Corp. was or¬
certain of such emissions.
Straus, Blosser & Co., 39 South
currency.
ganized on Oct. 24, 1958 in Dela¬
La Salle Street, members of the
Southern Natural Gas Co. has ware and is the owner of all of
Dealers
Tapering Off

institutional

That

ployee Restricted

Several rather substantial finan¬

buyers

are

cial undertakings have been

„

reported that both Phil¬
Corporate bonds, both new issue
seasoned
obligations,
are adelphia Electric and Pacific Tele¬
rounding out the year under a bit phone & Telegraph Co. recently
of pressure but with selling hardly brought to market settled down to

and

©f

ing,

nature to be

disturb¬

termed

They feel that the forthcoming

plans of the Treasury for raising
casting

new money are

ingly

lengthy

shadow

increas¬

over

the

And it is the hope in such

market.

that

quarters

new
a

market observers.

say

prospective

corpo¬

lows early this week.

burst of

delphia
gave

demand for tlic

Electric

was

Phila¬

offering

which

the general market

lift

week ago.

The

saving feature in the

cur¬

rent situation is the fact that

un¬

derwriters and dealers

un¬

not

are

reinvestment demand should take

©f.

borrowers

The
has

calendar

been

new

building

weeks but the consensus

that

prospects

weighed down by unsold
inventory. The customary January
good

borrowers,
January rush

tion.

addition, several firms have
registered for additional common
stock to be offered on "rights" to
shareholders.
Included
in that

part of such slack

category are Pennsylvania Power
&

Light Co., Rochester Telephone

Corp., and Seiberling Rubber Co.

outstanding

New York and Midwest Stock Ex¬

stock of U.. S.,
changes.
Inc., a cor¬

Fiber Glass Products,

;•

«'

organized in California
Hannaford & Talbot Adds
on Feb. 19, 1954.
Performer Boat
is presently a non-operating hold¬
'; (Special to The Financial Chronicle)
ing company with all operations
SAN FRANCISCO, Calif .—Ray¬
being carried on by its wholly- mond J. Tarbell has been added
owned
subsidiary, U.
S.
Fiber to the staff of Hannaford & Tal¬
Glass4 Products, Inc. The parent
bot, 519 California Street, mem¬
company intends to continue on as bers of the Pacific Coast Stock
a non-operating holding company
Exchange.
He was in the past
with all operations to be carried with Daniel D. Weston & Co.
on by the subsidiary.
At the pres¬
ent time seven basic models of
poration

fiberglass boats that generally can

With Anderson;

Randolph

With

•'

Looking Ahead

the

exists in the weeks ahead.

$35

put $20,036,400 of convertible sub¬
ordinate debentures into registra¬

recent

seems

corporate

duly

for

mortgage pipe

will keep a "foot
on
the brake" until the govern¬
ment's needs have been taken care
rate

million of 20-year
line bonds to
be sold at competitive bidding and
Champion Paper & Fibre Co. has
filed

first

The investment banking frater¬

;

typed as cruisers, runabouts
and ski boats, are being manufac¬
be

Gauss Now

tured

Wagenseller & Durst

and

sold.

The

company

engaged in the business of design¬
ing, manufacturing and selling an
extensive line of fiberglass boats

(Special to The Financial Chronicle)

(Special to The Financial

DENVER,

Chronicle)

Colo.—Arthur R.

Awenius and Earl L. Wild are now

associated

with

Anderson,

Ran¬

dolph & Co., Inc., C. A. Johnson
SAN DIEGO, Calif.—Theodore
nity, judging by the calendar of
Building. Mr. AweniuS was for¬
the money market in competition issues on tap, will have 'plenty of W. Gauss has become associated
under the trade name Performer. merly -with Garrett-Bromfield &
with the Treasury, will risk cut¬ time next week for taking care of with Wagenseller & Durst, Inc.,
Its executive offices, production Co. Mr. Wild was with Investment
the
season's
ting their own throats.
greetings.' Only a San Diego Trust & Savings Build¬
facilities and engineering depart¬ Sales, Inc. "
Y
;
-'•/
single operation of consequence, ing. Mr. Gauss, who has been in
Feeling now is that the Treasury
ment are located at 14720 Lakeand that a "rights" offering, is on the
investment business in San
has temporized with the situation
wood Blvd., Paramont, Calif.
Joins Hoffman-Walker
'
Diego for many years was for¬
long enough and that it should tap.
The net proceeds from the sale
(Special to The Financial Chronicle)
Northern Insurance Co. of New merly with Eastman Dillon, Union
proceed to bring out a long-term
of the stock are to be added to
Securities & Co., and prior thereto
COLUMBUS,
Ga. — Mark
F.
offering. There is nothing further York stockholders wTill be given
the
company's working
capital Rosenberg has become connected
to be gained, it is argued, by de¬ the opportunity to exercise their with Hope & Co.
and utilized for general corporate
with Toff man-Walker Co., Fourth
laying a basic test of the market. "rights" to take up 145,200 shares
purposes, including a building-up National Bank Building; vof
additional
stock
starting on
'With Boettcher & Co.
Corporate borrowers it is held,
of current inventories and an ex¬
they attempt

any

...

should, in the meantime tread
slowly in making new demands on
the market.
the

case

©vent,
«hance

until
to

This is expected to be

large manner, in any

the
look

markets
over

get a
whatever

Wednesday.

■

(Special to The Financial Chronicle)

The

•

•<:'

DENVER, Colo. — James R.
week, however,
looks a little better, what with $75 Harris has been added to the staff
million of C.I.T. Financial Corp. of
Boettcher
&
Company,
828
debentures due up on Jan. 8, along Seventeenth Street, members of
with $15 million San Diego Gas & the New York Stock Exchange.

following

and more dynamic

panded

sales

program.

present capitalization of the
company consists of 1,000,000
shares of common stock (par 25
The

cents)

authorized

and

With A. Wayne

Hough

(Special to The Financial Chronicle)

Calif. —Winthrop
with A. Wayne
370,000 Hough & Co., Security Building.
PASADENA,

O. Hearsey is now

Volume 188

Number 5806

The Commercial and Financial Chronicle

(2733)

The

following statistical tabulations

latest week
week
Latest

AMERICAN IRON AND
Indicated

STEEL INSTITUTE:

Steel

operations (per
Equivalent to—

Steel

ingots

and

castings

cent

capacity)

(net

tons)

runs

stills—daily

output (bbls.)_
output (bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)_.

;

fuel

Residual

oil

Revenue

CIVIL

6,967,885

6,884,460

7,755,000
28,095,000

7,774,000
27,336,000

28,240,000

28,146,000

2,698,000

2,221.000

13.651,000

12,620,000

7,011,000

6,712,000

2,393,000
12,798,000
6,744,000

174,305.000

169,309,000

29,647,000

West

29,904,000

Jec.

148,087,000

155,826,000

62,816,000

1.2

32,220,000
164,330,000

65,137,000

67,251,000

CONSTRUCTION

643,795

York

Outside
CIVIL

603.140

514,560

554,425

City

New

York

555,263

City

$291,813,000

$353,298,000

Jec. 18

$243,008,000

109,497,000

$265,614,000

•170,871,000

119,612,000

123,396,000
108,890,000
14,506,000

97,323,000
168,291,000

construction.

—

.»Public, construction
State and municipal—

t.»

.—Dec. 18

Jec. IS

COAL OUTPUT (U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons).

Pennsylvania anthracite (tons).:
DEPARTMENT

INSTITUTE:

Electric output (in

IRON

steel

Pig iron
•<

100

*8.765,000
460,000

405,000
157' ^

*244

Dec.20

:—

DUN

—

13,534,000

13,450,000

12,579,000

Jcc. 18

251

Dec. 16

267

260

6.196c

$66.41

$66.42

$39.83

$41.17

$32.00

COTTON
To

copper—

Domestic

Lead
tZlnc

(St. iouis)

(delivered)

;

>Zinc (East St. Louis) .at—
•-!

AMminum

Straits
'■Jl

York)

■

at—

13.000(5

13.000c

)ec, 17

12.800c

12.000c

28.775c

22.950c

12.000c

11.500c

24.700c

26.000c

99.125c

93.000c

98.875c

99.125c
r

corporate

Jec. 23

90.34

90.63

90.48

94.71

95.16

.94.86

93.38

93.52

93.08

.96.23

ec. 23

o9.78

89.92

90.20

84.04

84.30

84.17

88.67

Public

Utilities

87.99

Group
Group

Industrials

88.95

MOODY'S
r.i
a

Jec. 23

;

BOND YIELD DAILY

•>0.20

90.48

90.63

92.35

92.64

92.79

3.79

.Dec. 23

4.39

.Dec. 23

4.09

4.37

4.38

4.06

4.08

4.18

4.17

4.20
4.40

4.22

4.84

4.85

5.00

4.53

4.51

4.56

4.40

4.38

4.37

4.19

4.22

4.03

Dec. 23

MOODY'S COMMODITY INDEX-

4.25

Dec. 23

NATIONAL PAPERBOARD
ASSOCIATION:
.Orders received (tonp)«

.Dec. 13

4.23

392.2

390.6

395.9

344,015

LIFE

.Dec. 13

309,537

277,282

of activity^
Unfilled orders (tons) at end

.Qec/13

438,091

431,670

.Dec. 13 v

ROUND-LOT

TRANSACTIONS

FOR

ACCOUNT

—Dec. 19

606,520

40V. 29

2,248,140

2,625,010

2,830,600

2,346,070
2,952,590

—

"OV. 29

sales

the

53,700

121,900
725,710

675,510

847,610

958.335

134,410

149,100

154,700

Nov. 29

806,721

1,016,092

956,420

1,073,690

■'

,7"

Nov. 29

941,131

1,165,192

1,111,120

.Nov. 29

3,985.200

4,372,705

4,895,170

2,933,712

674.090

785.260

883,120

sales

„

100

Odd-lot

3.477,421

3,886,042

4,028,200

4.671,302

4.911.320

3.221,8(55

sales by dealers
of shares
value

Customers'

short

Customers'

Dollar

value

Short

Average

Net

562,320

•

508,010

598,270

-Nov. 29

-(04,340

582.920

532,170

Ratio of
S.

dept.

17.904.460

21.937,170

21,767,150

13,036,520
14.054,550

Farm

.Dec. 16

All commodities

11.9.1

119.0

119.1

-Dec., 16

♦■Revised figure.

farm

and

foods.

90.7

*90.1

108.8

*108.7

.Dec. 16

other than

102.0

*102.1

102.4

95.0

Dec. 16

127.1

127.0

126.8

125.6

(Includes 915,000 barrels of
foreign crude runs.

91.8

108.6"

92.8

10l3

§Based on new annual capacity of 140,742.570 tons
against Jan. l; 1957 basis of 133.459.150 tons." + Number of orders not
reported since introduction of
Monthly Investment Plan, iPrirne Western Zinc sold on delivered basis at centers where
freight from East St. Louis exceeds
of Jan.

one-half

cent

1958,
a

79,696,395
49,119,590

14,708,954

44,705,323

13,045,485

27,871,412

110.581,814
78,743,852

equipment)

face

"•■

4,652,167

2.11

3.71

$288,000,000

$275,000,000

283,059,927

280,211,456

274,746,843

107,105

111,943

103,584

$283,167,033

fixed

778,976

$288,000,000

$280,323,400

$274,850,434

425,588

426,090

439,211

$282,741,444

$279,897,309

$274,411,223

5,258,555

8,102,690

588,776

$283,167,033

$280,323,400

$274,850,434

6,524,998

4,534.264

4,864,855

$276,642,035

$275,789,136
2.647%

$269,985,579
2.893%

charges

LIMITATION

.<■

3.47.
>

(OOO'.s omitted):

amount

gross

4,560,549

32,167,728
4,514,676

—

stock

that

may

outstanding

public debt
obligations

not

owned

the

obligations

outstanding public debt obli
gutions not subject to debt limitation
total

outstanding
■
Balance face amount of
obligations, issuable
.under above authority
,_.

UNITED

STATES

GROSS

DEBT

DIRECT

AND

GUARANTEED—(000's omitted):
As

Nov.

General

pound.

50,295,896

26,750,792

chargescharges

stock

Nov.

Grand

118.2

.Dec. 16

foods

Meats

30,913,583

50,477,428

4,247,381

Deduct--other
.

products

Processed

83,871,484
4,175,089

5.04

3r56

Total gross public debt and
guaranteed

...

commodities.

114 844,053

35,056,184
4,142,596

lncome_Z

Commodity Group—
All

22,969,914
119,404.602

7.71

4.84
-

1,018.030

Nov. 29
—

100): r

1.150.030

20,617.120

$96,434,688

19,877,415
71,515,90$
4,848,346
66,667,562

4,242,434

from

Treasury
947,950

$51,638,493

23,030,237

114,829,195

STATUTORY DEBT

Guaranteed

20.989.220

4.58

taxes

income

Total

873,990

3.64

$91,798,953

at any time
Outstanding—

17.090.470

2.75

appropriations:

GOVT.

—As

Nov. 29

480,370
'

4.14

74,501,418

income

Dividend

Total
'

4.80
4.11

income

Federal

297",490

Nov. 29

prices, new series

Net

297,490

562,320

4.36

4.61

Depreciation (way & structure

40V.29

3.45

3.34

4.05

(24)

deductions

common

598,270

685

$4,689

555

fixed

preferred

—

(1947-49

Other

after

508,010

$3,009

$5,086

;

sales

—

YIELD

operating incomc____.___„

1,025,430

sales

labor

AVERAGE

income

$43,101,315

total round-lot stock sales on the n. y. stock
exchange and round-lot stock transactions
for account of members (shares):
Total round-lot sales—

wholesale

railway

1,707,819
$77,508,344

4ov. 29

3.54

20,05(5

548
889

(200)

Income

$3,669

666

INCOME ITEMS OF U. S. CLASS I
(Interstate Commerce
Commission)—
Month of August:
'

12,550

-Nov. 29

Round-lot purchases by dealers—
Number of shares

sales

RYS.

9,669

2.68

11,152

1.882.746

$496,900,000
'

4.09

1,045,486

Sept.

(10)

$52,552,708

$89,780,578

97,000,000

(15)

1,720,269

1,515,324

108,300,000

$537,000,000

$76,733,823

$71,988,519

53,000,000
9,100,000
42,600,000
92,500,000
97,300,000

48,500,000

STOCKS—Month of Nov.:

(25)

1,892.415

Other

$202,400,000

9,700,000

$577,800,000

(not incl. Amer. Tel. & Tel.)

$88,492,604

-Nov. 29

$222,600,000
50,900,000

57,400,000
10,400,000
47,600,000
119,000,000

(125)

1,526,476

Total

$233,100,000

PURCHASES —INSTITUTE

WEIGHTED

$72,439,196

sales

Short

September:

SELECTED

1,257,516

-Nov. 29

sales

Other

$5,056

-Nov. 29

Round-lot sales by dealers—
Number of shares—Total sales

557 '

Nov. 29

sales

38.8

omitted):

-Nov. 29

other sales
:

1.91

Income available for fixed

Odd-lot purchases
by dealers (customers' sales)—
Number of orders—Customers' total sales

2.24

1.95

(customers' purchases)—t

1,686,273

$2.11

2.29

39.7

"■

INSTITUTE OF LIFE

Miscellaneous deductions

1,900,583

*$2.14

2.33
1.96

—

*39.3

$2.17

*40.0

$3,833

Insurance

Total

1,517,823

39.3

40.4
39.3

INSURANCE—Month

Other income

Nov. 29

*39.7

110,300,000

COMMON

Banks

2,512.005

4.15X511

Number

Dollar

74.11

Utilities

iTOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD;
LOT DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
:

LIFE

Industrials

709,866

.Nov. 29

for account of members—

purchases—*.

Other sales
Total

88.93

*76.04

—

MOODY'S

615,952
160,510

575,605
736,115

sales

transactions

$82.92

*91.60

39.9

values

Railroads

785,110

-Nov. 29

ill—

round-lot

Total

*$84.96

94.13

Total

426,100
521,900

.Nov. 29

Total

10,1)63,680

Group

95,800

621.810

585,370

-Nov. 29

sales

Other sales

45,400

539,970

floor—

Total

11,764,000

Xi>.

Industrial

403,500

Jov. 29

;

Other transactions Initiated off
Total purchases

784,030

107,833

787,270

18,130,000

OF1

Dec.

Ordinary

1,510,300

Jov. 29

Short

612,100

88,004
677.695

77.03.

dividends

(000,000's

1,914.260

Nov. 29

sales

572,060

1,286,468

17,641,000

Total

1,963,850

Other sales
Total

Policy

453,550

2,130,730

-Nov. 29

the floor—

purchases

819,965

10,817,483

$86.58

DEPT.

INSURANCE—BENEFIT PAYMENTS

582,460

647.694

11,581,000

S.
,usf

__Z_

LIFE INSURANCE

3,037,450

8,031,951

1,415,025
7,284,540

manufacturing

Surrender

108.22

494,280

-Yov. 29

sales

Short

109.69

2,802,270

sales

Other transactions Initiated
Total

110.61

2,628,030

Other sales
lotal

110.73

*2,359

777,239
17,650,000

1_,

Disability payments
Annuity payments

288,876

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
-Nov. 29
Short

403,401

-*4,044

833,366

bales„__Z

gross

INSURANCE—Month

368,256

of period

QIL, PAINT AND DRUG REPORTER PRICE INDEX—
1919 AVERAGE = 100

1,343,141

Death
benefits
■Matured
endowments

Percentage

*2,537

10,269,041
104,211

October
Nov.

PRODUCTION —U,

POLICYHOLDERS

254,413

(tons)

Production

*9,678
*3,275
•

Durable goods
Nondurable goods

394.6

275,370

284,288
313,809

*2,078
*7,672

*3,495

*4,033

2,507

4.49

Dec. 23

3,414

Hourly earnings—
All
manufacturing

3.99

4.42

,*8,229

•.■...7

Nondurable goods

3.73

4.86

*8,328
*10,065

10,216,257

of
of

Durable goods

4.24

4.43

*2,107
1 ;

•

10,112

Hours—

•

Dec. 23

month

*33,484

*15,505
/

COMMERCE):

goods
Nondurable goods

3.13

Dec. 23

Public Utilities
Group
Industrials Group

3.57

Dec. 23

Railroad Group—

"T~

_Dec. 23

...

3.71

Durable

95.62

.Dec. 23

2,128

inaxiuitt^niring

All

Average corporate

Baa

AVERAGES:

U. S. Government Bonds—

Nov_. 1

500-lb.,

*8,312

Weekly earnings—

'. 93.23

Jec. 23

8,411
8,349

LABOR—Month of November:

82.27

88.40

ec.

16ans™^„__i

DEPARTMENT

—

\v-

*14,332

*$43,162

*33,079

14,164"

L1NTERS

*$43,144

33,052

FACTORY EARNINGS AND
HOURS—WEEKLY
AVERAGE ESTIMATE — U. S.
DEPT. OF

92.79

>ec. 23

Production

92.61

106,691

4,191

(DEPT.

spindles active

COTTON

100.3*.

Railroad Group

oStpeJis

92.50

Jcc. 23

"8*8.36

185,022

$43,164

Z_Z'

AGRICULTURE—jlMS,'Crop

87?00

Jcc. 23

Average

86,34

667,001
560,310

_Zz
____^_^_Z-^_^Z_i.Z__ZZ *
goods______-2_J_xZ_
Z

(running bales).

AND

Cotton

.Dec. 23

■

credit

Linters- Consumed

10.000c

24.700c>

823,177

term "credit

consuming establishment as of Nov. 1__
public storage as of Nov. 1

10.500c

11.500c

24.700C

AVERAGES:

U. S. Government Bonds
'

564,899

575,618

105,923

COMMERCE—RUNNING BALES:
Consumed month of October__^
*

26.450c

29.225c

Jec. 17

.Dec. 17

)lOQDrS BOND PRICES DAILY

13.000c

28.550c
26.525c

.Dec. 17.

primary pig; 99%) at-

tin (New

26.575c

Jcc; 17

28.600c

Jec. 17

)cc. 17
Jec. 17

—.

credit

GINNING

Nov.

COTTON

at—_——

refinery

Export refinery at_
Lead (New York) at.

613,073

1,008,199

681,541/

FEDERAL RE¬

and

Service

5.967c

inc. 16

$1,231,900

$1,111,808
430,267

Z";;.,"

Noninstalmcnt credit
Single payment loans
Charge accounts

276

Jec. 16

(per gross ton)

THE

modernization
Personal loans

12,412,000

PRICES:

(per lb.)

consumer

Repairs

$1,621,272

34,983,647

SYSTEM—REVISED SERIES—Esti-

Other

—

466,343,366

OUTSTANDING—BOARD

Automobile.

X 285

metal prices <e. a mi j.-quotations):

Electrolytic

CREDIT

Instalment
293

53,445,172
531,936,121

560,335,027

short and intermediate
in millions as of Oct. 31:
Z
Total consumer credit

481,000

96,376,945
$501,327,013

municipal

GOVERNORS

SERVE

9,171,000

117,683,636

$585,381,293

CONSUMER

145,675,000
22,616,000

8,510,000

118,745,155

Z_
/...

—:

I'ederal

INDUSTRIAL)

l-.y

—

-mated

8,960,000
507,000

Dec. 13.

———

;

and

(per gross ton)

Scrap steel

43,194,000

—Dec. 13

000 kwh.)_

COMPOSITE

AGE

Finished

(COMMERCIAL AND

BRADSTREETV INC.

139,233,000

56,557»000

construction

State

STORE SALES INDEX—FEDERAL RESERVE

ELECTRIC

FAILURES

182,427,000

125,759,000

—Dec. 13

SYSTEM—1947-49' AVERAGE
KDISON

182,316,000

Jec. 18

Dec. 18

i—___■

Federal

115.980,207
44,101,927
23,985,481

CONSTRUCTION — EN¬
NEWS-RECORD — Month of

November (000's omitted):
U. S. construction-—
Private construction

Public

—

87,060,337

ENGINEERING

Total

•-

construction.,

Private
.

...

109,686,291
86.297,437
41,128,655
16,351,496

$26,294,519

$632,860,417
72,525,390

__Z
~Z~Z

38,131,333

104,068,383

50,505,547
31,685,204

—

___

.NEWS-RECORD:
Total

---

Total United State*—

ENGINEERING

—

594,476

~~~~

ZZZZZZ*

________

42,192,498

131,819,353
91,348,363

™_ZZZ
,__Z_ZZ.

$27,526,300
109,842,861

67,296,018

GINEERING

588,847

$29,256,060

_______

;

Ago

112,204,717

■

___

;

___

Year

Month...

Central

New

159,275,000
59,034,000

532,274

„

—

;

Central

Pacific

CITIES—Month

Atlantic
Atlantic

Mountain

188,845,000

31,009.000

INC.—315

DUN

—

South " Central

7,761,000

174,706,000

Jec. 12

East

AMERICAN RAILROADS:

ENGINEERING

VALUATION

England

South

2,167,000

Jec. 12

at—

of that dateg

are as

Month

PERMIT

of October:

13,118,000

Jec. 12

—

freight loaded (number of cars).
.Dec. 13
freight received from connections (no. of cars)—-Doc. 13

Revenue

7,067,285

transit,, in pipe lines—

(bbls.) at
—

(bbls.)

1,366,000

Joe. 12

Distillate fuel oil (bbls.) at.

1,988,000

Middle

;ee.

Kerosene (bbls.) at

ASSOCIATION OF

BUILDING

BRADSTREET,

*2,011,000

lee. 12

and unfinished gasoline

53.4

7,096,654
'17,788,000

—„Jec. 12

Kerosene

Stocks at refineries, bulk terminals, in

73.7

7,666.000

either for thi)

are

Latest

of
Jec. 12

of quotations,

cases

Ago

New

(bbls.

average

(bbls.)

average

*74.5

or,

Ago

§1,840,000

Dec. 12

Gasoline

Finished

§68.2

—Dec. 28

gallons each)

Crude

Month

Week

that date,

production and other figures for tiki

Dates shown in first column

■

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily
42

Dec. 28

month ended

Week

month available.

cover

Net

funds

balance

debt

Computed

annual

rate!

;

2.679%

*38 :

The Commercial and Financial Chronicle

(2734)

Mutual Fund Assets Rise

Thursday, December 25,1958

$12.69 Billion

Industry

Assets of the 149 open-end member companies of the National

Association of Investment Companies were $12,699,630,000 on Nov.

Mutual Funds

On Oct. 31 they were $12,218,441,Nov. 30, 1957, they totaled $8,928,892,000.
Share purchases by investors during November came to $159,829,000, the announcement said. This compares with $170,563,000
for the previous month and $100,291,000 for November, 1957. Re¬
demptions of shares by investors for the month totaled $54,690,000

000 and

By ROBERT R. RICH
:

Strength of Retail
Trade Big Factor in
Curbing Recession
"Sustained
trade"

was

strength

retail

primary reason for

Atomic Fd. Assets
;

Reach New Peak
Atomic Fund President,

Dec.

assets

states the current issue of
Perspective." Other factors were
the decline of inventory liquida¬
tion and a rise in Government

all-time

The factors behind retail trade

strength included such elements
as a high level of disposable per¬
decline in sav¬

compared with $61,270,000 for October and $28,017,000 for Novem¬
ber a year ago.
^
The number of new accumulation plans opened in November
for the regular monthly or quarterly acquisition of mutual fund
shares totaled 23,215. In October 22,735 such plans were started and
in November, 1957, investors opened 17,663 accumulation plans.

Affiliated

high.

Atomic Fund

was

first publicly

offered

on Dec. 14, 1953 at a price
(adjusted for the 3-for-l split in
1957) of $3.60. Offering price on
Dec. 11, 1958 was $5.94. Capital
gains paid during 1955, 1956 and

Business

Broaden

Recovery

good chance that automobile
production will be high enough
during the winter and spring to
be an important factor in extend¬

ing the general business recovery
is foreseen by Emerson W. Axe,
of Axe-Houghton Fund

President

his annual letter
Fund's shareholders.

the

"Thus

totaled

expenditures.

Newton
that

ago, on

year

1958 Atomic Fund's net
$60,157,000, a new

11,

the briefness of the 1957-58 reces¬

sion,

Letter"

"Atomic

fund's

Steers, Jr. has disclosed in the

30, the Association announced.

Reports

$131 Million Assets
Gain in Fiscal Year

ural Gas Company; General Foods*

Gorporation;
International Shoe
Company; P. Lorillard Company;
Marathon Corporation; New Eng¬
land Electric System; New York
State Electric & Gas Corporation;
Northern Natural Gas Company;

ery

far," he says, "the recov¬
has proceeded with little help

from the automobile

industry. But
reported to be
low, strikes have delayed the pro¬
dealers' stocks

duction

national

new

models

income

high

new

are

has

record,

the

and

reached

according

Government estimates/*"

.! Affiliated
Fund, Inc.,
among Pfizer (Chas.)
Company; West- *
%-Mr. Axe looks for axecovery in
share. The the largest of all investment com¬ inghouse Electric Corporation.
the demand for automobiles and
management has recently panies, reports for its fiscal year
other consumers' ? durable
goods
ings and a flattening out in the indicated that an additional capital ended Oct. 31, 1958, net assets of
which will largely determine "how
long rise of the cost of services, gains distribution will be made in $477,785,334, equivalent to $6.94
mucn further the recovery is like¬
the publication adds.
the forepart of 1959.
per
share on 68,816,582 shares.
: ly to go." r"';
"However, a strong ease can be
represents an increase of Ami
The "Atomic Letter" also lists This
made for the thesis that the most
He reports that manufacturers'
the three current projects for nu¬ $131,337,988 in net assets, and 31%
important of all influences has clear propulsion of rockets and in value of its shares. '
inventories have been declining
been the behavior of King Con¬
Net income for the year was
and that in some industries "any
earth satelites and shows some of
Corporate dividends -and persumer
who maintained ; a
high the
interruption in the supply of raw
principal contractors engaged $14,865,357, or 23 cents a share. share
profits will break all exist¬ materials causes a rush to
level of retail purchases," "Per¬
Net
realized profits
from sales
thereon.
Also commented on in
buy and
of securities of $16,257,104 which ing records next year, according an advance in
spective" states.
the letter are Tracerlab, Inc. and
prices." v He finds
to a memorandum on, the stock
such a situation "has developed
"Perspective" is published by Combustion Engineering, among are included in the 31% increase
in value referred to above will be market outlook released to sales with
the Investment Management De¬ the fund's portfolio companies.
respect to copper" and alsodistributed in the form of a 24 representatives of Managed Funds,. witn less
partment of Calvin Bullock, Ltd,,
pronounced upturns in
Inc.
V- r~- demand—in some branches of the
cent capital gains distribution on
manager of mutual funds with as¬
Prepared by Slay ton Associates, textile
Dec. 17.
Number of shareholders
sets in excess of $500,000,000.

sonal income, some

1957

totaled

36c

„

per

funds'

New

High ill Profiti
Dividends

Forecast for 1959

The publication notes that, "the

latest figures

retail trade

are

encouraging" despite some nega¬
tive aspects in the prevailing pic¬
ture, particularly the fact that
durable

retail

lag.

sales

continue

Keystone Fund's
Year-End Paym'ts
Keystone
B-3

Fund

Priced
have

Priced

Bo^nd

Keystone

Lower-

Low
and

Common

declared

income

Fund

Stock

semi-annual

lar distributions from
ment

increased by

S-4

regu¬

net invest¬

cents

and

cents respectively.
tions

Both distribu¬
payable to shareholders

are

of record

Interested
In

ATOMIC

We will be

glad to send you a free
prospectus describing Atomic
Development Mutual Fund, Inc. This
fund has more than 75 holdings of

31,

common

1958,
stocks

87.65%

12.35%

a^ets

shows
and

cash, U. S. Treasury notes, corpo¬
rate short-term

notes

and

receiv¬

ables.

stocks

Common

each

the

represented

industries

following
5%

of total assets: bank¬

or more

6.98%;
chemical
and
drug
ing
8.43%,; container and packaging
5.78%; electric light and power

9.45%;
natural
gas
5.76%;
8.43%; store 6.07%; tobacco

oil

5.36%.
i.

In regard

to growth in size H.

I. Prankard 2nd, President, states:

"Many

benefits

have

our

shareholders

this

growth. f

accrued

result

FIC Contractual

important of
believe, has been
the ability of both the company
ahd otfr management organization

Plan Sales Set New

perienced

Record in Nov.

companies active in the atomic

attract

contacts

growth hi principal and income.

Development Securities Ce., the. Dept C

Business

written

Most

and hold

con-

access

fund shares totaled

abled

able and

ex¬

men and to widen our
and open new avenues

"Growth
FIC

tractural and single payment plans
for the accumulation of mutual

1033 THIRTIETH STREET, N. W.
WASHINGTON 7, D. C.

Total

Diversification
Oct.

these benefits, I

field with the objective of possible

Atonic

at the close of business
31.

15.

stocks selected from among those
of

Dec.

payments for
12 months in B-3 are 91 cents,
the largest since 1954 on an actual
basis and the largest in the fund's
history when adjusted for capital
gains distributions. For S-4, this
is the third semi-annual payment
of 8 cents.
Since Jan. 1, net as¬
set value per share of this growth
fund
has
increased
73%, from
$6.49 to $11.22 per share on Dec.
on

7,736 and the number
participants in the Periodic In¬
vestment Program by 4,640.

information.

size

make

also

has

substantial

en¬
re¬

ductions in the ratio of bur oper¬

ating

expenses

to net

assets.

$17,187,156 for the
year just ended, our operating
November, 1958, it was announced
expenses amounted to only fortyby Rowland A. Bobbins, Chairman
six one hundredth of one per cent
of the Board of First Investors
of our average net assets, or 46
Corporation. This represents a $1cents for each $100 of such assets.
miUion gain over October business
In 1938 the comparable figure was
of $16,179,978, and is an all-time
$2.00. At the current rate a share¬
high in FIC's 28 years in invest¬
holder with a $10,000 investment
ment

EITHER PROSPECTUS
FREE ON REQUEST

sales.

j Incorporated j
I

Investors

ESTABLISHED 1925

A mutual fund investing in

list of securities selected for

possible long-term growth of

capital and income.

J Incorporated j
I

Income Fund

'* A Mutual fund investing in

list

income.

of securities for current

j
I

J
I
I

I
I

A prospectus

on each
fund is available from
your

investment dealer,

I
i

The Parker Corporation
200 Berkeley Street

Boston, Mass.

•

I
—I

finds that his total expenses for
November, 1957, sales a year (fees for management, cus¬
amounted to $11,918,888.
todian, dividend disbursing agents,
First
Investors
now
has
20 transfer agents, etc.)
amount to
branch offices in the metropolitan only $46—less than many people
area and in
Washington, Boston, pay for their newspapers."
Buffalo and Syracuse, with dis¬
Issues added to or eliminated
tributors
located
in
other
key from the portfolio in the year
cities. More than 2,000 registered ended
Oct. 31, 1958, were:
representatives offer FIC's 10-year
Additions:
Alb'ed Chemical
plans for the accumulation of
Corporation; American Telephone
shares of Wellington Fund, Mutual
&
Telegraph Company; ChemeInvestment
Fund,
and
Funda¬
tron Corporation; Chrysler Corpo¬
mental Investors'
Fund, giving
ration; Fibreboard Paper, Prod¬
planholders a choice of a balanced
ucts
Corporation;
Ford
Motor
fund, a fully-managed fund, or a
Company;
General
America
common-stock fund. The plans can
Corporation; General Motors Cor¬
be purchased with optional reduc¬ poration;
Gulf Oil Corporation;
ing term group life insurance pro¬ Halliburton Oil Well Cementing
In

tection.

First Investors

Corpora¬

counselors

fund

mutual

the

memorandum listed several other
factors to support its contention
that

now

good

time

ac¬

cumulate long-term equity invest¬
ments.
T
...

industry.

869

group,

Although

the industrial aver¬
ages are at record highs, almost
90% of all securities listed on the

He fears recent advances in

in¬

terest rates may

discourage further
expansion in new construction,
though
'residential construction
has shown substantial recovery."
Axe's letter

is part of the
Axe-Houghton
Fund B, which shows total net
assets of $100,382,982 for the Fund
Mr.

annual

report

„

York Stock Exchange are at the end of the fiscal year on
selling below their historic peaks, Oct. 31. During the year, the net
asset value of the Fund's shares
many of good quality with "excel¬
lent long-term growth potential." rose from $6.72 to $7.87—agrbwth
Favorable
opportunities
still of 21.4%, including a distribution
exist to purchase shares in com¬ to shareholders of 29 cents a share
panies which are pacing the eco¬ from security profits. Income divi¬
cents
a
nomic recovery and will lead "the dends amounted to 27
share.
dynamic surge" ahead,
t
Earnings, after taxes, for many
stocks, at the end of the first
quarter of 1959, will be substan¬
New

Ebasco Assets,

tially highe^ than the first quarter
of

this year.

~*r"

Some corporate earnings should
be more than 100% higher.

Share Value at Pea
Asset

value

Electric

Bond

and

Company's common
/ Business
activity should con¬ stock at Sept. 30, 1958 was $177,tinue to rise at least into 1960.
478,0p0, or $3380 a share, the
"However, recovery in business highest at any reporting" date since
is not the only reason for project¬ comparable
figures have been
ing higher stock prices over the available, according to-the com¬
long term,"
Slayton Associates pany's third quarter report.

continued.
icance

"It

that

is of great

signif¬

the

past recession
actually was accompanied by fur¬
ther price inflation, and astute in¬
vestors have been buying common
stocks

hedge against it.

"Continuing

inflation

George
states that

G. Walker, President,
this is an increase of

$28,916,600,
value

over

1957.

the

or 19%,
over asse'
1957 year end, and

asset value at Sept. 30

The value of the company'

is,
and
will continue to be, a powerful
stimulus to common stock prices."

marketable securities acquire

The report also" cited as a favor¬
able market factor "the tremen-

.■

doifls

technological advances" and

billions of dollars spent by indus¬

try

on new and

efficient plant and

equipment.

since

1954, when the in
program began, ShoWe
appreciation at Sept. 30, 1958
of $9,412,300, an increase of 38%
over cost, the report shows. *
April,

vestment

Net income for the nine month

ended Sept. 30 was

$5,691,836, o

$1.08 a share, compared with $5,

"This hgs caused productivity to

increase rapidly

during a period
of
vigorous recovery,"
it said,
"and, therefore, corporate profits
will benefit substantially from a
combination of higher sales with
lower unit costs."

or $1.11 a share, for th
corresponding period of 1957.
quarterly cash dividend of 3
cents a share was paid on Sept. 2

808,059,

to holders of record

Sept. 8.

On Oct. 22 Bond and

Share sol

180,060 shares of American & For
According to Slayton Associates, eign Power Company Inc. com
the coming years will witness an mon stock for $17 a share, les.
acceleration in new products and expenses, the report states.
Th

major

improvements

in existing
7-year time lag from
initial research on a new product
until mass production is achieved,

company earlier this
chased 172,000 shares

Company; H. J. Heinz Co.; Inter¬

the full benefit of current record

in the fall of 1957.

national

research outlays will just begin to
be felt in the next few years and

Ebasco Services

Telephone & Telegraph
tion offers the investor, at all
Corporation; McGraw-Hill Pub¬
income levels, a means of long- lishing Co., Inc.; Monsanto Chemi¬
Outboard Marine
term investment according to his cal Company;
Corporation; Reliance Electric &
objectives, through monthly pay¬
Engineering Company; Remington
ments of fixed amount, ranging
Arms Company, Inc.
from $10 a month to more than
Eliminations:
"NTejtirfql

$1,000 a~month»

investment

million

Gas Company;

Consolidated Nat¬

ones.

With

translated

into

profits for

many

"We fully

higher sales and
corporations.

year

pur

at an aver
age price of $12.60 to restore it
position following a similar sal
In

its subsidiary
Incorporated, th
states that it is associ

reporting

company
ated with

International

Genera

expect, therefore, that Electric Company in a 150,000 k
development and introduction of nuclear power plant oroject
new products will be
a
growing Italy for Societa Elettronuclear
stimulus to eqi'itv
prices," the Nazionale (SENN). Ebasco is t
Slayton report stated.
supply IGE extensive technics

Volume

Number 5806

188

....

The Commercial and Financial Chronicle

mm
services

involved

design

construction of the project.:
.' The company reported
Chemical

expenditu
most

HIT

versification
the

according to

st^dy prer*
pared for release Dec. 15 by In¬
ane! hydrogen.
design- vest0rs
Planning Corp. of America,
rng and constructing three of the
Gompiled by i.
C. research
four ammoma plants being built.
dii.ectQr Walter Losk, the report
in the U.S. at this time. The first
a

commercial installatmn to

utilize

mutual

adjusted

anCGj

i^e0

raiC£ "ure? Process in the. wjth both
or! sJX?am. n] trials and
S^ber
tli^ 3Vlonsarito Chemical 500 stock

plants

urea

When

overseas.

ently

Nov:

plants presconstruction by or

under

urea

Nov>

are put
operation, the Chemico urea
process will account for a greater

into

percentage

the

production

urea

8%.

rose

the

disclosed

industry in the corresponding
riod

showed

over

increase

pe¬

0.4%

-in

September

sold

4.74%

operating
subsidiary of Foreign Power has
raised

equity

capital from

investors.

•£..

S.
v

-•

suffered

Dec.

From

av<pjge decline from_Nov. 17

through Dec. 1,
the income funds (invested mainfeetors of The Lehman Corporal ly in high-yield common stocks)
lion. The distribution will consist and the specialty funds (invested
of a capital gain dividend of $1.09 generally in common stocks of a
and an ordinary divi153,£ cents per share,
both
payable Jan., 28,
1959
to
•stockholders
of record
Dec;
29,
of

specific industry) actually produced rises in average net asset
value per share of .25% and .08%
respectively.
During the Nov.

1958T.

$19.04

17-Dec.

pe-

receiving the

dividend

either -in

additional stock, taken at its 'asset value on Jan. 6, 1959, or. in

the

Commenting on the study,
cash.;. This is the same manner in* I. P. C. President Walter Benedick
which the capital gain dividend stressed that its preparation was
was paid last year at this time and
not intended to reflect the superi-

gives stockholders the opportunity
reinvest such dividends

stock

asset

value.

the

in tne

corporation

The

ordinary
dend will be paid in cash.
^

divi-

one

another

general

over

board

vidual

of directors

pies Securities Corp.,

comparisons,"

and

This

payable Jan.

shareholders
1958

marks

record
the

equivalent

The

sharp

run-up in

action

lowed

ommending
and

June

of Dec.

compared

30,

January

$9 to $9.90

per

W° odall |

time

the

amount

any

the

25%

one

issuer.

Board

Directors of

The

total

Initially, management
5,000 shares, later

for

Fund's
were

total

assets

011

50^

share on Common Stock.
share on the 4.6%

per

28%*:

has

last fiscal year.

Eberstadl

the

has

Common

declared

payable

stockholders of

31, 1958.

Cumulative Preferred Stock.

payable

are

record

to stockholders of
the close of business Decem¬

Dividends

DIVIDEND

the 4.6%

Cumulative
DIVIDEND NO. 172

$25 par value Preferred Stock are pay¬
able March 15, 1959 to stockholders
of record

NOTICE

COMMON STOCK

The Boord of Directors

February 26, 1959-

December

Robert A. Wallace

17,. 1958,. de¬

clared

a cash dividend for
the fourth quarter-of the

year

«-Viee President and Secretary

upon
mon

of 65 cents per shore
the Company's cOm-<
capital stock. This

dividend will be paid by
check on January 15,1959,

OTIS

common

stockholders

of record ot the close of

ELEVATOR

business

K. C.

COMPANY

Dec. 26,1958.

CHRISTENSEN,

Vice President and Treasurer
San Francisco. Calif.

Common Dividend No. 209

quarterly dividend of $.60
share on the Common, Stock
has been declared, payable
January 23, 1959, to stockhold'

per

ers

record

Checks

the

January 2, 1959.

will

mailed.

H. R. Fardwell, Treasurer
New

York, December 17, 1958.

Outstanding shares
from

334,936

Advisors

stockholders of

been

the

been

tfcviwnp''-'A

per

Common Stock dividends

$6,676,618, compared

with $5,892,348 at the close of the

acquired

I Southern California
Edison

Gary Slag
of

which

Company

DIVIDEND NO. 184
COMMON

Vulcan

Materials Co., according to ah an¬
nouncement made

Dec. 22.

DIVIDENDS

STOCK

Directors

Power

Company

POWEE

"ng for capital gains distributions.

payment
cents per

the
outstanding
Stock, payable Feb¬

1959

of record

the
■

■

Quarterly dividends of $1.25
preferred stock, $1.13

per

share
share
share

preferred stock, $1.54 per
preferred stock, $1.41 per
preferred stock, and 40 cents

on
on
on

the 5%
the 4.52% serial
the 6.16% serial
the 5.64% serial

per

the

stock of Pacific Power &
Light Company
have been declared for
payment January 10, 1959, to
stockholders
of record
at
the
close
of business

December 31, 1958.
Portland, oregon
December 19,1958

„

^»

Secretary

dends:
COMMON STOCK
Dividend No. 196
65 cents per shore;

4.48% CONVERTiBLE SERIES
Dividend No. 47

authorized the payment

quarterly dividend
Preferred

Stock

owners

fol¬

28 cents per share;

PREFERENCE

Dividend No. 43
28 Va cents per stare.

record

The above dividends

able

CLASS

PER SHARE

$4.50

$1.12f/z

$4.52

$1.13

$4.16

$1.04

CONSUMERS POWER COMPANY
JACKSON, MICHIGAN

ScnviKf OuUtdU

STOCK,

4.56% CONVERTIBLE SERIES.

1, 1959

March 6, 1959.

common

following quarterly divi¬

PREFERENCE STOCK,

lows, payable April

Dividend Notice

authorized the payment
the

January 23,

PREFERRED STOCK

The Board of Directors has

20,

30% respectively after adjust-

ihe

dividend of 60

1959.

16,

eptr30, 1957, increases of 2iy2%

authorized

has

$12.20

Consumers

The Board of Directors also

was

$11.88

Board

The

& LIGHT COM PAN V

n i

tWfc£ki*4Mi Becfric

dividends:

business
net

Federal

Paper Board Company, Inc. has this
day, declared the following quarterly

first

adding another 500.

Dec. 19

Secretary

GRIFFIN,
Secretary-Treasurer

rec¬

assets invested in the securities of

committed

and.

December 16, 1958

right to have

KENNEDY,

Bogota, New Jersey

decided

M. E.

of the Fund

had

management

avail ""itself

the

Common & Preferred Dividends:
The

share.

for

that

since inception

1959,

the

1959.

NUt'strils

per

FEDERAL PAPER BOARD CO., inc.

November, stockholders

informed

were

13,

JOHN

record December

In the Fund's last annual report
in

record

Vice-President

dividend

the

24th

1958

with

1958; and

business

30$

value"

share on the out¬
Stock of the com¬

February

Stock

DIVIDEND ON

„

and

1959 to

fund's

per

Common

payable

pany,

stockholders

three-for-one split

distri¬

Dec. "

The regular quarterly dividend of

NOTICES

owners

announced that the net asset value

dend of 20 cents

standing

AT&T fol¬

directors

increase

rate of

;

PACIFIC

30, 1958 and $865,974 on
Sept. 30, 1957. Mr. Karasick also

DIVIDEND

ruary

June

on.

said,

Street, New York, N. Y.

The Board of Directors of this company
December 11, 1958, declared a divi¬

the firm.

1958 were $1,834,504,
compared with $1,133,119 on

14.62

25 Broad

change, on Jan. 2 will admit Jo¬
seph A. Beisler to partnership in

Common

of Dec. 1,

per

market

basis to 17.6% of total assets.

Peo*

Abraham S. Karasick, President,
has announced that total net assets

to partnership.

has

consecutive quarterly distribution.

CITY INVESTINGCOMPANY

ber 29, 1958.

DIVIDEND NOTICE

share from

per

securities profits.

bution

'stock- mutual

income and $.24 V2
net

value

diversified

Mutual
in

Corp., all of the stock

investor, his current finan-

fund, has
declared a quarterly distribution
of $.2712 per share, consisting of
$.04 per share from net investment
common

and

•

Corp. Assets Rise
The

investing

;

Jan.

Proctor

negotiators and financial advisors

direct

Com¬

DIVIDEND NOTICES

January 15, 1959,

of mutual funds in

Pitser &

type of mutual fund

securities.
"Such

•

F. Eberstadt & Co. has acted as

"only have validity when they
Securities 5, take into consideration each indi-

reopies
1

net

ority of
over

Eugene

rise is attributable to the advance

Dow J ones Industrials, with only
have
increased
f°ur falling further than the
350,602.
Standard & Poors Average,

ggin

that

York

Exchanges,

within the past few days of over
10% in the market price of Amer¬

offered the option of

Boston Stock
2 will admit

New

January 15, 1959

decline

great

the

•

nounced that stockholders will be

interested

current

riod, none of the common stock
funds represented in the com-ptl&tion sustained a percentage

capital

19,

Guardian
be

and
Monroe C. Gutman, chairman of
the * executive
committee, I an-

Robert Lehman, President,

of Dec.

would

issued

'- -From Nov. 17

with

York

Commenting on the relatively
sharp increase in value, Mr. Neu¬
berger said "a good part of this

totaling ! $12,358,000
y/£re declared by the board of di-

dend

Fund

funds and 7 Canadian funds

SeS&>£un- with a 2'28^

per

fund

New

City,
special letter to its share¬

stockholders

for its

comparisons,
JVI,r. Losk reported that, as expeeled, the per-share values of
the balanced funds (whose cornmop,stock position is usually less

with

bers of the New York Stock Ex¬

Tne i.
c. study used 63 com- ican Telephone &
Telegraph Com¬
monV stock -funds, 30 balanced pany stock, of which the Fund
funds, 29 specialty funds, 10 in- now holds 5,500 shares." This is
come

members

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

of
the
stoppage
of
deliveries in the New
York
area,"1 Roy R. Neuberger,
President, stated, "we felt that the

1,
the
declines
1.30% and 1.03%

is affiliated

BOSTON, Mass. —H. C. Wain¬ pany, 615 Hillsboro Street.
wright & Co., 60 State Street,

"Because

Poors

Nov.

(Special to The Financial Chronicle)

RALEIGH, N. C.—E. L. White

newspaper

declined

Year-End Dividend
Dividends;

increase of $1.45 since the end
the fiscal year on Oct. 31.

asset-value

through Nov. 25—2.02"%—followed

risen

nation's

averages

To Admit E. F. Proctor

holders advising them that the net
asset value of
their shares had

compilation

average

investment

mailed

most

are

Now With Pitser Co.

Wainwright Go.

New Partner for
Gyrus J. Lawrence Sons

Guardian Mutual Fund, Inc.,

headquarters in

its

than 75%) experienced the small-

Lehman Declares

accept¬

Paper Strike

mutual

peak;

respectively,

because i it
an

4.17%.

amounted

an
additional
53,000
shares-of this issue.: This is a si'g-

transaction

Dow-Jones

all-time

and the Standard &

through

purchased"
nificant

I.
an

Average

297,000

shares of common stock for $6,460,000, less expenses, to a limited
number of private investors in the
United
States.
Foreign
Power

marks the first time

three

139 mutual funds

the Dow-Jones

previous year.
Foreign Power's Cuban subsidi-

gry

widespread

.07% from Nov. 17 through Dec. I.1 knowing " the
From Nov. 17 through Nov. 25, their shares.

the

N. Y.

dr0p of only 2.84% from Nov, 17
through Nov. 25 and less than

S.,

sales of the electric utility

energy

the

press,

of American & Foreign
Company in the first half

1958

the

its

per-share values
regularly listed in the

sub-

sidiaries
Power

using

whose

process.

sales

energy

fund

Fund's Answer

when

—

Based

other

any

commercially available
Electric

total

world's

than

into

"News Letter" Is

sharpest one-day decline in three
years; and Dec i_when it closed
the
highest since* the > Nov. 25
drop-off

under contract to Chemico

pro¬

built

perform-

distributions,

Averages,

hit

full-time

di¬

H. C.

the Standard & Poors

i7_when

Average

in recent years."

ance

pivotal dates*

constructed

were

for

mutual

does

the Dow Jones Indus-

Company plant at El Dorado, Ark.
Previously, all Chemico-designed

fund

and

management

increasingly

compared

study

our

principle of in¬
vesting. And it does give a clue
to why funds have met with such

jess» than it did the common stock

production
HSJ®' ? is
.U1*c ?
Chemico

think

fessional

assef vaiues of mutual funds "far

1958, received ordersioi

suggest the characteristics

Last month's stock market dip
the
average
per-share

projects for the

goals.

"But

affected,
fnr

major

UutperiOrill Mkt.

throughout

circumstances and future fi¬

nancial

that
Corpora-

Construction

cial

and>l||:il*11€1l ri11irl Cllt,c
-A- Itllil OIIIa«

January

stockholders
uary

31,

are

pay¬

1959

record

Jan¬
5. Checks wili be mailed

from the Companys office in
Los Angeles, January 30.
p. C.

hale,

Treasurer

The Commercial and Financial Chronicle

Thursday, December 21

.,.

(2736>

BUSINESS BUZZ

Business
on

#„•

•

Man's
/f y* gl
jlJL I1/xM/

Behind-the-Scene Interpretation®
froca the Nation'®

Capital

*t'A 'ii•
'f

nuclear power
plant. They told the Commis¬
sion that they did not regard it
as feasible to build the type of
plant at this time.

WASHINGTON, D. C. — The
financial bomb shell that direc¬

Telephone
and Telegraph dropped with the
proposal
to split the utility
♦stock three-for-one, may have
been welcome news to nearly
all of the approximately 1,625,000 stockholders, but
it was
"bad news" for official Wash¬
tors of the American

proposal was as
snowstorm
by
winter
residents
in
Southern
.Florida. The Treasury is faced
.with a tremendous deficit, and
the task of raising colossal sums
of new money in the New Year.
welcome

proposal

The

directors, who are
look out for the welfare of the

get

greater

than

money

government

long -range

provide. Therefore,

liow

Government
K bonds,

experts

ment.

good economic year.

are

of news develop¬
Washington recently

economically.

the
situation over with Republican
leaders the other day, and told
them he did not see how the
budget recommendations could
be trimmed very much. It seems
Eisenhower

talked

unemployment compensation,
old age pensions and consumer

spending. When a man is out of
work, he does not spend for big
items, but for little items.
is

its

been

tion and the Pennsylvania Pow¬

and

that

Light

they

Co.

decided

announced
not

through with their plan to build

em¬

have

had*a

very

1 959.

though

COMING

OPTIONS

EVENTS

Jan.

Al¬
the

Investment

Field

MAKING A

Baltimore Security Traders

Directors

three

the Southern Hotel.

and

Hotel.

formed the members of the Board

(Philadelphia, Pa.)

Bullis

stated

Mr.

the

Bellevue-Stratford

Chairman

recently

without

was

Ask

the

Association

has
;

been

that

during; the

prices

MEMlERS

Not. 2-5, 1959
.

they

covery.

President

(Boca Raton, Fla

ciation

Annual

Convention

the Boca Raton Club

[This column is intended to re¬
flect the "behind the scene" inter
pretation from the nation's Capita
and may or may not coincide witl
the "Chronicle's" own vieios.]

How

PUT

CALL

MOKEPS * OEALEAS ASM*.

BA'

Brradway, N. Y. 5

TRADING MARKET

Botany Mills

Heywood-WakefietJ*
Indian Head

Millfe

W. L. Maxson

Morgan Engineerinj
National Co.

Carl Marks
;

Co. Inc.

Southeastern

Pub. Se

United States Envelo]

FOREIGN SECURITIES SPECIALISTS
20 BROAD

marked pace."

Options

American Cement

off since the re¬

Corporation profits have

shot up at a

Booklet

pWcf
days

National Security Traders As»t

oddities

recession, but

levelled

for

and ten

Hiltoi

Hotel.

increased

sell/-]
P

Amer

the uplift of

Department

months

Investment

ica annual meeting at the

appointed

Group

Bankers

Advisory

six

plant and equipment," said one
at

his

sell

only be dohe through the

Hotel.

recovery

stock

the profit is long

Use

Texas

time to the furtherance of the In¬

Board, of which he

the
may

capital gain. Such a transaction

April 1-3„1959 (San Antonio,Tex. ;

looking forward enthusiastically
to devoting a large part of his
ternational Development

a,-p.

ten'4;

another and

Philadelphia annual dinner at

member

that

term

buys

man

selling at 70 and'a

months

fifty,

of his intention to submit his res¬

Bullis will continue

short

of?

he in¬

ignation at the close of 1958.

length

profit

Investment Traders Association

date.
year ago

stock

six

Feb. 27, 1959

Harry A. Bullis

the

'-X

short

the

always

However,

years

the

short,
is

.*'•/- *•

Option for six months and

for

Plaze

sale

ciation 35th annual dinner at the

Approximately
.a

Mr.

trader

regardless

Boston Securities Traders Asso¬

normal retirement

''J.¬

•

;

(Boston, Mass.) V

Feb. 6, 1959

Sheraton

beyond

sociation 24th annual dinner at

Chairman

DECLINE

As¬
'

is 65, Mr. Bul¬
acceded

LON

PROFIT

TERM

(Baltimore, Md.)

Jan. 16, 1959

age in
the company

lis

A SERIE

ON THE USE *

General Mills,
effective

*6 IN

sharp

the

"We

have

Westinghouse Electric Corpora¬

temporary

Commerce. "One of the

got

22,

develop¬

giving these employees a chance
to earn overtime money. '
»

Commis¬

when

rather

Where production has
stepped up, employers are

official

activities,
day

bring

than

More Public Power?

other

give their
employees

ployees.

4 cents to 5 cents.

the

little trend by

good
established
overtime
opportunities

letters be increased from

expand

Dec.

Board

;

the battle is already

gle which we must not lose."

meeting of
Directors, Harry A.
Bullis submitted
his resignation
as
Chairman
of
the
Board
of
On

economic

and

Here

joined with the Soviets in a strug¬

of the Board and of the Executive

companies to

many

4H cents. Postmaster Gen¬
eral Arthur E. Summerfield is
recommending that the postage

sion, which is awfully anxious

There

unemployment, of

there has been a

Atomic Energy

Chairman.

which he is

Committee.

some

Some of the experts feel that

blow

still

course.

break, may have to put
more taxes. The new Secre¬

The

1958

for

income

dropped only 1*2%. There has
been
a
decline in production,
but this was offset primarily by

that the taxpayers
country, instead of get¬

ment.

Development Advisory Board, of '

continued

Personal

rate

sistance

thering objectives of International

Board

Commerce, Lewis L.
Strauss, is recommending that
the' Federal
gasoline tax be
-raised from 3 cents a gallon'to
4

Will devote bulk of time to fur¬

the

It appears

tary

request of

gets more funds.

the

Resigns

General Mills Chrm.

the

about every agency in
government feels that the
country will suffer a great deal
unless
the
particular agency-

out

M$£h. (cloth).

believe," he said, \VorTdfj)| telephones, 1958 Is
"there is nothing of more imme¬
Am$4can .Telephone
diate importance than the protec¬
graph Co., 195 Broadway
tion of our national security in
York 7, N. Y. (paper).
international trade, technical as¬
"I

Eisenhower.

the
Commodity Credit
Corporation has been spending
near record sums for the surplus
crops.

Administration,

Business

Boiler Room!"

normal retire-

land,

the

ting

He wants

suspicious of that Stock Broker.

ment

that just

quarter.

v|rsfty of Michigan, Ann %

spending is be¬
Because of the
great and bountiful crops that
have been harvested across the

lion.
Mr.

S426

was

year

Government

neighborhood of $79 bil¬

in the

S439 billion
The low-

was

ing stepped up.

thing

one

billion

quarter.

the

quarter

it appears that
President Eisenhower's budget
which he will send to Congress
in about three weeks will total
For

third

the

billion in the first

Of importance

are

rate.

series
in

annual

will be at

S453

equivalent

the

Product

National

Gross

The

More, Not Less Taxes
A

bit

to rent a

the

in the fourth quarter

ments

1957, which was a pretty

ter in

Government's
saying pri¬
vately that the AT&T proposal
was
not sound.
Unfortunately,
official Washington has a ten¬
dency of wanting everybody to
"hold
the line," but
the big,
ever-growing Federal Govern¬
the

Some

Liquidity—Impact

Monetary Accoi
Paton, Jr.—B
Business Research, Sch

"I'm

exceeded the peak of any quar¬

fiscal

Loiti& 1, 'Mo. (paper). *

WHJiabT A.

Bullis

published reports to the effect
that
the
recovery
has
been
slowed down.
That's not true,
according to some of the able
economists in the government.
The fourth quarter of 1958 has

Treasury bonds or

for

area

fla&on

speeches and

There have been

notes.

met

location O
plants and branch offices-)

itan

Study in

Congress are

Slowup

No Business

in fixed-interest
bonds, be th«v E

tory.

less interested

—

facilities in St. Louis

expected to be greater than
anytime in years, if not in his¬

puts the spotlight on
stocks in companies that have
a
cnance
for growth and in¬
creased dividends in the future.
As a result, a large segment of
the investment community are

i.j'

Great Place f
booklet dest

Natidhai Bank in St. Lo

vocates in the new

proposal

Louis:; A

Business

the

facilities continually in¬
creases.
It has risen from 1.5%
to more than 17% of the total
industry during the last two
decades. The public power ad¬

bonds
AT&T's

A
C

460 Park A'
22, N. Y. (p
li¬

power

return on their
(tlie more secure

York

st.

electric-

Federal ownership of

Because
many
people
with money to invest prefer to

Board,

New

Why?

Industrial

National

ence

$3.50.

control it.

owned
util ty, probably means that the
Treasury will have to pay frac¬
tionally higher interest rates in
January and early next year.

; ''vv.r;.44

$4.75.

—

;

world's largest privately

A
(

17,

Production Costs Here and

Government; to

States

United

Bon

Park

103

York

New
-:

a"d he wants

Dollar

New York 4, F

corporated,-

AT&T
obligated to

1957

be "staked
out as the private domain
of
industry."
Senator
Anderson
wants an expanded atomic en-

the

■ *

of the

Policy" Against Inflation —
Harrod—St. Martin's Pre

concepts

Sept.

Broad St.,

icy lie believes it unwise to al¬
low the field of advanced atomic
power

German

for

who advocate
government controls,
and more public power. Assert¬
ing that he was not surprised
by the announcement by Penn¬
sylvania andWestinghouse, Sen¬
ator Clinton P. Anderson of NewMexico said as a national pol¬

vidend increase

,r *

2,-1958—Validation ^

Sept.

stronger

At the Treasury Department
proposed stock split and di¬

dationBoard for German

Congressmen

the

Bonds

Deal

supplied new fuel for New

'Fifth Anirial Report

the companies

The decision of

ington.
'

$108-million

STREET

•

NEW YORK 5,

TEL: HANOVER 2-0050

H.JLJ

TELETYPE NY 1-971

LEANER I CO.
\

;

Investment Securities- H

It Psst Offics
mm.

Telephone

Sfssra, Bsstts
•" \i'\

iUbbard 2-1990

9,1
Te|

Full text of Commercial and Financial Chronicle : December 25, 1958, Vol. 188, No. 5806

FRASER