Full text of Commercial and Financial Chronicle : December 26, 1963 : Investment Bankers Association of America Convention, Vol. 198, No. 6328, Section 2

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The Commercial and Financial Chronicle

Convention Number




Troster,
74

Trinity Place, New York 6, N. Y.

Direct wires to

correspondents

An

Primary Markets

Over-The-Counter

across

the country

important

function of
business is

our

establishing

nationwide markets
in

For

new

issues

banks, brokers and financial institutions only

m
mm

I

Inquiries
the
-

ss

&,,.x

particularly
purchase

or

invited
sale

large blocks of stock

oj

on

...

.

.

.

Thursday, December 26, 1963

Volume

198

This

Number

6328

.

.

The Commercial and Financial Chronicle

.

just sold

man

a

mile of highway...

All

perfectly legal, of course—and a promising investment, too. The man is a sales
representative of Chase Manhattan's Municipal Bond Division. And he's just sold some
highway bonds to a large institutional investor.
Institutional investors listen closely when the man from Chase Manhattan comes to
call. In

a

competitive world where

no

portfolio

can

afford either lazy dollars

or

undue

risk, these investors appreciate the quality of informed market judgment characteristic
of

role

our

as

one

of the nation's

leading underwriters, distributors and dealers in :

STATE, COUNTY, MUNICIPAL

INTERNATIONAL BANK FOR

BONDS AND NOTES

RECONSTRUCTION AND
DEVELOPMENT (WORLD BANK)

PUBLIC HOUSING AGENCY
FEDERAL LAND BANKS

BONDS AND NOTES
FEDERAL NATIONAL

TENNESSEE VALLEY

MORTGAGE ASSOCIATION

AUTHORITY BONDS
FEDERAL INTERMEDIATE

CREDIT BANKS

U. S. GOVERNMENT INSURED

MERCHANT MARINE BONDS

FEDERAL HOME LOAN

INTER-AMERICAN DEVELOPMENT BANK

John C. Senholzi,
ident in charge

Sales,

directs the efforts of

Chase's bond

Call

Vice Pres-

of Municipal

him

at

representatives.
212-LL2-4145.




'

BANKS FOR COOPERATIVES

■

,

w^m

|

BANKS

["J £

t

j

-

A

H /VO t

MANHATTAN

BANK

s

MUNICIPAL

BOND

DIVISION

Head Office: 1

Chase Manhattan

Plaza, New York, N.Y., 10015

o

The Commercial and Financial Chronicle

Thursday, December 26, 1963

...

.•'vrs**-;*-

.

THE

BANKERS
/

OF

AMERICA

Officers

MARK

DAVID J. HARRIS
Bache & Co.,,

Chicago

Vice-President

Vice-President

President

LLOYD

DAVIDS

HATCHER

B.

White, Weld & Co.,

Lester, Ryons & Co.,
Los Angeles'

New

York

1963-1964




Vice-President

JOHN

Howard,
and

P.

LABOUISSE

Weil, Labouisse, Friedrichs

Company, New Orleans

>

Vice-President

CHARLES

C.

Vice-President

PIERCE

ALBERT

PRATT

Rauscher, Pierce & Co., Inc.

Paine, Webber, Jackson & Curtis,

Dallas

Boston

I

Volume

198

Number

6328

.

.

The Commercial

.

and Financial Chronicle

IBA

CONTENTS OF THIS ISSUE
Memorandum
Page No.

IBA Officers for 1963-1964

IBA Governors for

Committee—Ad Hoc

1963-1964

_6,

Regional Group Chairmen for 1963-1964_____..__i__________

8

Municipal Securities—George
IBA

Subcommittee

to

Marson B.
____

K.

Alan

N.

18

Lester, Ryons & Co., Los Angeles,

Chairman

Municipal

on

24

.__

Municipal Business Practices—

on

Weeden,

Subcommittee

25

Trading and

Cashiering

Procedures—Joseph Vostal, Chairman

Calif., and Guy R. Taylor, of Mercantile-Safe Deposit & Trust

Subcommittee

74

____________

t

Advance

Chairman

Pratt, Chairman

15

__,

Winners of IBA's 1963 All-Institute Essay Competition—

Co., Baltimore, Md

Municipal Bond

and

Browne,

Municipal Industrial Financing—

on

Special Committee

Bernadotte P. Lester, Jr., of

20

14

Subcommittee
List of Those in Attendance at the Convention.

of Amyas Ames;

B. Wendt, Chairman

study -State

Refunding—Alan

Bibliographies of New President and Vice-Presidents

Securities

American

of

Consisting

Municipal Securities Committee and Related Committees—

7

i

Practices

Committee

Francis Kernan; Albert Pratt; Donald Regan; Avery Rocke¬
feller, Jr. and William W. Foshay (Counsel)
—
16

4

____

REPORTS

COMMITTEE

Selling

on

30

Municipal Liasion and Bond Sale

on

Procedures—Walter

W.

Craigie, Chairman

33

___.

;

,

Municipal Conference Committee—
Roster

.

of

Advertisers.

121

_____

'

*

*

*

Russell M.

*

Fred D.

TEXTS

OF

THE

ADDRESSES MADE DURING

Primary Issues Pertaining to the Securities Industry—

Herbert

10

T

Special Study of Securities Markets—

William L. Cary

as

Borrower and Lender—George D. Woods

R.

Committee—

Investment

Benjamin




C.

Potential

of

an

Educated

Kenneth

_______

12

Education
—

Bonds

•

E.

Hill,

Chairman

Chairman

Preferred Stocks

Common Stocks

•

Primary Markets
Industrial and Public Utility Companies

distributing facilities

Banks and Insurance

through 29 offices
located in

Companies

States, Municipalities and Public Authorities
United States Government and

principal financial and business centers.
Coast to Coast

Agencies

Complete Trading Facilities

Blyth & Co., Inc.
New York

Louisville

Pasadena
Fresno

San Francisco
Philadelphia

Detroit

•

Spokane

San Jose

Chicago

•

•

Milwaukee
•

Palo Alto

Los Angeles

•

Pittsburgh
•

Minneapolis

Sacramento

Oxnard

Seattle

•

Cleveland

•

•

42

Committee—

Avery Rockefeller, Jr. and H. L. Parker, Co-Chairmen—

13

Distribution

Boston

32

38

'1'

Retail

.___

Committee—Shelby Cullom Davis, Chairman 34

Foreign Investment Committee—Andrew N. Overby, Chairman 41

Am erica-

Willis

28

\

Anderson, Chairman

Canadian Committee—J. Ian Crookston,
The

26

Oil and Natural Gas Securities Committee-

11

World Bank's Role

22

Utility Securities Committee—Milton F. Lewis, Chairman 31

Insurance Securities

After the

40

Haire, Chairman

Committee—Robert A. Podesta, Chairman

Investment Companies

Amy as Ames, Retiring President—_______

36

Municipal Securities—

Governmental Securities Committee—Robert B. Blyth

9

Public

SEC

on

Stone, Jr., Chairman—-

State Legislation

Incoming President's Inaugural Address—David J. Harris-1

The

Education

Federal Taxation Committee—John R.

CONVENTION

THE

Ergood, Jr., Chairman------

Committee for Public

•

Kansas City
Eureka

Tacoma

Portland
Indianapolis
Oakland
San Diego

Salem

Reno

49

The Commercial and Financial Chronicle

.

.

.

Thursday, December 26, 1963

THE

Amyas Ames
Kidder, Peabody &
Co., New York

•J*

Andrew S. Beaubien

H. L.

L. G. Beaubien & Co.

Ltd., Montreal

Bogert, Jr.

& Co., New

F. S.

Dean Witter & Co.

Union Securities

Hunter

F. C. Braun, Jr.

William B. Boone

Eastman Dillon,

Moseley & Co.
New York

Portland, Ore.

York

Breckenridge

McCourtney1

Breckenridge &
Company, St. Louis

1963-1964




Irving H. Campbell

J. Howard Carlson

William H.CIaflin, III

Harrison Clarke

Carl M. Loeb,
Rhoades & Co.

Tucker, Anthony &

N. T. & S. A.

Bell, Gouinlock &
Company Limited

Johnson, Lane, Space
and Co., Inc., Atlanta

San Francisco

Toronto

Alan K. Browne
Bank of

A.

America,

Halsey Cook

The First National

City Bank, New York

New York

R. L.

Day, Boston

City

Willard G. DeGroot

John W. deMilhau

Jack 0. Doerge

Bayard Dominick

Bateman, Eichler &

The Chase Manhattan

Co., Los Angeles

Saunders, Stiver &
Co., Cleveland

DominickA Dominick

Bank, New York

William G. Harding

Elmer G. Hassman

Coffin & Burr,

A. G. Becker & Co.

Boston

Incorporated,
Chicago

New

York

0

If

\!
Allen C. DuBois

Milton S. Emridi

Harvey B. Gram, Jr.

Wertheim & Co.

Julien Collins &

New York

Company, Chicago

Johnston, Lemon &
Co., Washington,
D. C.

.•>>

Volume

■

198

•-

■

Number 6328

.

.

.

7

fhe Commercial and Financial Chronicle

Toip G. Hilborne

Charles J. Hodge

Arthur Horton

B. Franklin Houston

Herbert D. Hunter

Liberty National

Glore,Forgan A Co.

Bank and Trust

New York

Craigmyle, Pinney,
Penington A Colket
Philadelphia

Dallas Union
Securities Co.flnc.

Watling, Lerchen A
Co., Detroit

Company, Oklahoma
City, Okla.

Newell S.

Knight

The First National

Bank, St. Louis

Francis S. McComb

J. J.

Wagenseller A Durst,
Inc., Los Angeles

Scott A
'

Muldowney
StringfelloW,

Richmond

Dallas

Robert A. Nathane

Frank R. Newton, Jr.

Merrill Lynch,

Lentz, Newton A
Co., San Antonio

Pierce, Tenner A
Smith Incorporated

Seattle

{

Governors
1963-1964

Edgar M. Norris

Robert A. Podesta

James M. Powell

J. B. Sanford, Jr.

F. R. Schanck, Jr.

Edgar M. Norris A
Co., Greenville, S. C.

Walston A Co., Inc.

Boettcher and
Company, Denver

Hattier A Sanford

Bacon, Whipple A
Co., Chicago

Frederick T. Seving
Butcher A Sherrerd

Philadelphia

Richard B. Walbert
Blyth A Co., Inc.
Chicago




Chicago

Herman J.

Sheedy

McDonald A Company
Cleveland

W. Whitney, Jr.
J. M. Dain A

Co., Inc.
Minneapolis

K. J.

Thompson

Luce, Thompson A
Co., Kansas City, Mo.

New Orleans

Anthony ErTomasic
Thomas A Company

Pittsburgh

Milton S. Trost
Stein Bros. A Boyce,

Inc., Louisville

Carlton P. Wilson

Wendell W. Witter

John D. Young

Robert W. Baird A

Dean Witter A Co.

Co., Incorporated

San Francisco

Lee Higginson
Corporation, Boston

Milwaukee

The Commercial and Financial Chronicle

...

Thursday, December 26, 1963

REGIONAL GROUP CHAIRMEN
EASTERN

CENTRAL STATES

PENNSYLVANIA

G. C. MacDonald

James E. Snyder

James D. Winsor, III

McLeod, Young, Weir
& Company Limited,

Francis I. duPont A

CALIFORNIA

Francis S. McComb
W agenseller &

Durst,
Inc., Los Angeles

MICHIGAN

Julius Pochelon

Co., Chicago

Yarnall, Riddle &
Co., Philadelphia

Kenower, MacArthur
& Co., Detroit

NEW ENGLAND

NEW YORK

NORTHERN OHIO

Montreal

MISSISSIPPI
VALLEY

MINNESOTA

Edward J. Costigan

David B. Stone

Robert H. B. Baldwin

Leslie B. Schwinn

Kalman & Company,

Edward D. Jones &

Co., St. Louis,

Morgan Stanley &
Co., New York

L. B. Schwinn <ft

Inc., St. Paul

Hayden, Stone & Co.
Incorporated,

SOUTHERN

B. M.

1963-1964




Storey, Jr.

r

Co., Cleveland

Boston'

PACIFIC

William 0. Alden, Jr.
Alden & Company,

Inc., Louisville

,

ROCKY

NORTHWEST

OHIO VALLEY

MOUNTAIN

SOUTHEASTERN

John A. Fagerstedt

George B. Fisher

George S. Kemp, Jr.

Gus G. Halliburton

Paine-Rice &

Bosworth, Sullivan &
Company, Inc.,

Abbott, Proctor &
Paine, Richmond

Equitable Securities
Corporation,'

Company, Spokane

Denver

WESTERN

SOUTHWESTERN

Felix N. Porter
First National Bank
& Trust
•

Company,
Oklahoma City

TEXAS

Tom

PENNSYLVANIA

Ball, Jr.

Frank H. Hunter

Bache & Co.,
Houston

McKelvy & Co.,
Pittsburgh

,

Nashville

Volume

198'

Number

6328

.

.

The Commercial and Financial Chronicle

.

will

The New President's

It

is

that

Inaugural Address
■

i

,

■V.V.

■■

.

.•.

New

IBA

cautions the

perfectionists who

and

posals.

practical results in seeking implementation of the

Mr. Harris is

who has always had
has found

pro¬

the

practical from the impractical

that

so

devote
to

himself to the twin tasks of

tives

so

The

honor

I

feel

as

work and advise with the SEC in

report

my

of the work of Amyas

admiration
Ames.

We

tions

indeed

our

had

recommenda¬

Congress.

Amyas

owes

fortunate to
have

to

its

in

industry

The

Ames

the

fective

as

President

and

played in

leading

man

30

of such

stature

behalf.

our

has

•

Years

in

the

have

I

been

securities

the

in

ing

our

this

Association in

some

coping with

its

the

to

severe

problems with
our

been

a

on

issues that

affect

to

as

large firm,

as

ate

in¬

our

exchanges.

industry Liaison Committee to

.

Durr

speak

securities, and

As you

serving

most

spend

to

me

first

their

of

now.

years

of the nation's
may

the

stressed

effectiveness

right

now

it may

know, I

Chairman

every

10 years we cre¬

fund and select personnel
65

the

taken from

more

or

of

department heads of our

and

year

a

from

Which would obviously give us a
look

the

ourselves

at

investors

out of the

vide far

we

to

take

it

serve,

political

and

now

made

by men who

selves have

no

are

political ambitions.

To summarize the present

well be too late.

study,

major recommendations called for
SEC
It

Study Group's Report

should

be

obvious that I

more
am

Special Study group of the SEC.
These

findings

are

tee
of

drawn

the

from various

industry

qualifications

into our

for

I

am

entry

business, basic capital

quirements and

a

re¬

general tighten¬
of

selling

I

that

convinced

am

sidered

commissioners

who

Underwriters and Distributors of

Since
scale

this

first

the

was

full-

top-tq-bottom survey of the

securities

member.

the Special Study

industry

30

than

more

implementation

on ouf

the

of

recommendations

is

to

Ideal "standards

great,

what

and

but

price

for them?

The

study
176

mended

rules

and

changes
or

regulations.

are

on

the vast

But,

although

this

may

curities business is

Buffalo

•

St. Louis

Cleveland
•

Athens

•

Detroit

•

London

•

Durham

Pittsburgh
•

Montreal

Miami

Allentown

inter-lock¬

so

affects

ever

This

is

or

another

absolutely

one

group

indirectly

Charlotte

reason

■

Rochester

essential that
ContinUed

on

EXCHANGE

BROADWAY, NEW YORK 5, N. Y.

•

•

•

San Francisco

South Miami

•

San Mateo

Stockton

Washington

•
•

*

Santa Cruz

Santa RoSa

•

Syracuse
•
Winston-Salem

Tallahassee
•

Winter Park

•

Sarasota

•

Tampa
•

•

•

Scranton

Vineland

York

siiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiig



all.

why it is
our

in¬

dustry associations work in con-

Fort Lauderdale

Oakland

will

affect

Arlington • Atlantic City • Berkeley • Boston • Bradenton
Chicago • Clearwater • Cocoa Beach • Deland • Detroit
•
Hollywood • Jacksonville •
Lakeland • Lancaster
Miami Beach
•
Milwaukee
•
Minneapolis
•
Morristown
•
Newark
Ocala
•
Philadelphia
•
Pompano Beach
•
Raleigh
•
Ridgewood
•
Sacramento
•
St. Petersburg
•
St. Petersburg Beach
•
Sanford
•

the

be

ing in its relationships that what¬

OFFICES IN:

Brooklyn

ma¬

intention, the fact is that the se¬

WOrth 4-6700

Alexandria

of these

jority of people in the industry.

Reyholcls k Co.
STOCK

The point

■

some

Mergers and Acquisitions

YORK

recom¬

in existing

designed to have lit¬

effect

no

has

changes

Brokers in Securities and Commodities

NEW

are
we,

;

group

has been made that

tle

will

ultimately the investors, have

to pay

Primary Markets in Many Unlisted Securities

MEMBERS

the im¬

practical.

Municipal and Revenue Bonds

OFFICE: 120

many

carefully

the practical from

screen

Corporate Securities

MAIN

an

hands.
Therefore, the task ahead in the

the study group found

years,

in

have

well

could

and

impossible situation

Underwriters and Distributors of State,

IN:

with
other SEC

represent

COAST-TO-COAST DISTRIBUTION

CORRESPONDENTS

this

resting

judgments

Chairman Cary and the

^iiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiuiiiiiii^

•

if

study had not been in the capable

directly

practices and procedures.

elements

which

of
a

full disclosure, broader and

higher

being ing and strengthening

now

evaluated by the Liaison Commit¬

As you know,

Private Placements

is

that

one

dollars to find something wrong.

and pro¬

arena

objectivity, since it

more

be

relation

in

knowledgeable and within them¬

being made

are

a

I propose this on its merits

study.

would

Decisions affect¬

delay.

indsutry

our

the Midwest Stock Exchange and

as

correct,

is

piece is here and

my

privileged to be

now

that

great universities to make such

assumption

of

am

our

culties

once

a

some

undeiv talking about the findings of the

active participant in the ad¬
one

fact

the

of

Government has

finance

so.

this

If

small firm

as an

vast

then

gained

broker and dealer in

a

ministration of

Certainly, Amyas, it was a master¬

a

standard

of

as¬

speak

then I believe the time for

experience in all phases of

very

as an

faced.

have

I

listed and unlisted
David J. Harris

stroke to initiate'the formation of
an

period,

operations; from

writer,

in-

t ry has

and

ing

and

ideal

improvements in

importance and

possible in light that

as

experience

L cannot

Business

business for nearly 30 years.

u s

me

listening much and saying little,

represent

d

chosen

making the

am

Congressmen who are supposed to

intelligence to

which

I

Unlike the freshmen Senators and

this past year
a

have

you

the ef¬
he

role

a

theoretical

a

hands of Milton Cohen with con¬

view

In

Federal

highest

honor and appreciation for

between

my

public.

the

to do

interpretation of the SEC staff
and

opinion, there is

my

difference

in

industry would lead

our

to continued

form of appease¬

my

out

its

are

the

representa¬

industry

some

objectively

of

entitled.

your

as

question

no

basic point.

a

self-regulation, should we not
probably the best talent we have
consider periodic studies of
had in those posts in history, we
sumption that you want and ex¬ Our
industry as a whole? Wouldn't would be
facing serious diffi¬
pect me to look at current events it make
good sense to propose

that the industry remains sufficiently

than

by

and

Was

President,

working closely with the SEC

newly elected President is more
matched

in

read

to

dustry when I think it is gainful
today

is

to

our
In

There

come

Theoretical and Practical

of

short while ago that joint capacity to protect and serve the

Since

He pledges to

profitable to be able to give investors the services to which they
are

all

ment.

improve services provided and to protect investors, and to prevent

impractical regimentation

with

we

Wide Difference Between

almost

aspect

life.

startling

sioners

system of providing

our

living

regulations

Now

ex¬

business.

discussions between SEC commis¬

What he is concerned with is the screening of

working capital for industry is not sharply impaired.

business

papers a

report and sincerely urges periodic assessments of the industry at

decade.

to

securities

quite

into

delved

and

conceivable

every

studies of

living with Federal securities regulations not to be oner¬

least every

haustive

that I have

so

accustomed

rather

pleasant relationships with SEC officials and

Moreover, he praises the value of the exhaustive 5,400 page

ous.

being,

survey was

I have never mind that the study not only has
in fact, merit but, in turn, has had a sal¬ practical. The former is much de¬
sired by individuals who tend to
my
personal relationships with utary effect on our whole busi¬
be perfectionists and particularly
SEC officials over the years have ness. It is my belief that
periodic
those who were given a million
been pleasant.
Therefore, it was

30-year veteran of the securities industry

a

into

came

retically could be raised.

5,400-page report—36 critical

a

where standards theo¬

many areas

findings

found this to be onerous;

take the SEC

may

to

their

reduced

and

in the securities pounds. The

career

extensive hear¬

conducted

group

business began just after the SEC

my

"Special Study" recommendations too literally not to ignore total
cost

hats

interesting coincidence

an

Federal

of America, and Partner, Bache & Co., Chicago, III.
head

two

wear

ings

my

been

By David J. Harris,* President-Elect, Investment Bankers Asso¬
ciation

to

endeavor

this year.

page

76

10

The Commercial and Financial Chronicle

session to

a

problems

Primary Issues Pertaining

arising

curities

sion

To the Securities

Industry

study of

and

of

this

Association

Partner, Kidder, Peabody

Company, New York City

ments

His

year of momentous importance to the IBA because

a

of the SEC's "Special Study" impact and because of various crucial
bills now pending in Congress. Mr. Ames

to work with
the

primary

of the

views

as

the IBA's most

the

Government, and criticizes the industry for not tapping
of its policy wisdom. He calls on the wise leaders

eventful

busy

a

year.

There

several

major

policy

volving

obligations

and

have

an

in¬

into

crises

in

Washing¬

devoted to the
as

Which

relates to the selling practices

made

to

set

out

of

en¬

We

for

the

work

we

do

raising

capital

myself in the

fpr

beginning. I

tivities generally—total financing

have made

of

14

cities,
this

states

kind

and public

will

$9,600,-

George

Wendt,

000,000

around

the able Chairman of

the

country,
was

but

ipal

unable to

cific

pleased

Amyas Ames

1963.

our

that

munic¬

Benjamin

C.

North¬

it

took

strong

from

me

I

can

assure

to

pressures

making

these

keep

visits

I was most anxious to make

I

you

as

them.

should

perhaps say. a word
about this Convention. In the
past,

tion, of the City of Chicago, has
this

that

this

major

Hollywood

the time for

convention,

Beach,

has

here
been

hearing reports. This

our

should

to

two

our

Will

be

grouped

the

to

However,
and
now

is

in the

say

in

session

to

apologize to

able

our

com¬

today.

wanted

I

As

you

know, Secretary Dillon

have

to

was

on

been

principal

our

Wednesday but he has
notified

that

us

out

of respect for our late

President,

he

to

has

all his
30

felt

obligated

cancel

speaking engagements for
I

days.

have

asked

Andrew

Overby, who is Chairman of

our

%

devote

the

com¬

later but I

you

Monday

to

Ways

and

emphasis

before

testified

we

add

the

an

sive record opposing this tax has

we

the records of that

About

prepared

drew

ten

days

ago

letter which An¬

a

Overby and I,

President

as

of the IBA, sent to every member
of
Congress, every member in

the

Senate

in

and

closed

the House

That

Representatives.

letter

brief circular Which you

a

will find

on

the desk in the lobby

stating why it is that

believe

we

formerly
the

a

the problems raised in in¬

on

Interest

I

also

am

Mr.

President

a

Equalization

pleased

Robert

of

pro¬

to

the

new

NASD will

say

word to us.

I believe

least

at
the

us

a

wonderful op¬

to meet him and

hear

preliminary

an

outline

plans

of

of

the

leadership
It

business

eigners of

our

from

S.

been

one

of

us

as

President of the First Boston Cor¬

U.

securities

by

that

trade

by

dollars

an

the

threat

but
of

an

not

obtained

important factor
jobs for Amer¬
the

of

enactment

United

merely

limitation

a

issue

is

tion by

the

carefully
It

is

studied

have

such

by

improper

were

plea

a

I

to

enter

'•

-

f

\

'

that

they

tion.

We

reconsider
have

gether for 30
should

we

line

set

asset

■•7

;'

Underwriting

One of the most

'

^

icy

matters

to

Investment

Bankers

in

Direct Wires to

a

1963

was

before

posi¬

well

to¬

and I believe

years

why

reasons

the

respect

dividing

by the Congress in

SEC

to

us

1933

work

so

j

Legislative Proposals

Another

portance
this

has

year

ment

matter

which

of

the

of

has

been

SEC

posals which

the

Association

prime

im¬

occupied
the

now

us

develop¬

legislative

are

House Committee

pro¬

before

the

Banking and

on

Currency, having been passed by
the
is

Senate

earlier

IBA

to

It

year.

by

the

The

standards

only

be

improving

to

of

an

the

quality
peo¬

The decision

proceed

at

once

implementing these leg¬
recommendations

certainly the correct
and

Study

in

effectively

performance of the

spring

view

passage

the form

in

before the House

now

can

the

urge

legislation

Committee.

and

this

important part of the policy

an

islative

important pol¬

come

to

business,

their

effectively together.

towards
Bond

to

who

them

worked

last

Revenue

like

banks

permitting

ple Who work in it.

j"'

between

the revenue bond

tures.
'

should

"would
the

creating and job creating expendi¬

1

banks.

we

responsible for this proposed

legislation

raised

since pri¬
are

the

that

organization.

our

Association,

ers

make

This

so

so

Before going out of office as
President of the Investment Bank¬

which it is

particularly

of

Board,

difference

a

members of

industry

is

Chairman

Reserve

unfortunate

We

foreign investments

busi¬

our

and I believe should be most

one

States capital market.
an

to

that the record built by the House
Committee is a most compelling

the

be

to

one

Martin,

Federal

the

securities

to

sent

others, including William

McChesney

procedure and wrong in principle.
vate

vital

a

of

this

and

ness.

of

believe

printed

lobby and I urge any of you who
have not read it to do so as the

the

foreign

in October. This testi¬

was

in

actual embargo on the sale

new

against this legis¬

all members. You will find copies
of the leaflet on the table in the

and

retroactive tax has in effect

imposed

testifed

we

fol¬

icans. The uncertainty engendered

a

Investment Bankers Associa-r

mony

for¬

export goods

the creating of

in

inter¬

of

purchases of foreign

are

the

which has allowed

Purchases

with

by

has

financial

the free world

credit.

bonds. Acting on the author¬
ity of the Board of Governors of
enue

represents there Are
compelling

of

fundamental

a

national

of

He

is

lows

NASD for the years ahead. I

day.

in

our

the United States.

you

hope
all will attend that session.

and

abdication

services

it is

to

interest

serious

tax.

announce

Haack, the

of
en¬

national

talk

in

impres¬

Foreign Securities Committee and
Assistant Secretary of
Treasury, to give us a short

to

House

Committee

Means

August and I believe

legislation

Fortunately, we have been
Andrew
strongly Supported in our posi¬

more

a

in¬

on

this legislation is contrary to

World Bank, will speak on Thurs¬

we

like

committee.

asking Mr. Cary to speak
to

tax

a

—

plete report for

been built in

time.

George Woods, President of the

I explained to him that

us

our

Interest

investing.

allotted

beginning

very

of

proposed

ternational

mittee chairmen for reducing their

speaker for

principal speaker

opening

the

of

the reports of Overby will have

convention

session.

sion will be

and

today.
days of

us

shortened.

portunity for

for

at

our

William Cary, Chairman of the
Securities and Exchange Commis¬

spring meetings at White Sul¬
phur have been working sessions
our

here to be

come

Chairman

Foreign Investment Committee, is

what he had to say. As you know,

be

posed

Dr.

ably handled by An¬

Averby,

must

Willis, General Superintendent of that
west, to the Rocky Mountain area, Schools, of the Board of Educa¬

and to Canada.

with

the

committee/ has developed a ternational
investing by the
interesting program. We are

most

get to the Pa¬

in

ac¬

exceed

regional visits

most

drew

would

it

tire session to municipal business.
have reason to be proud of

had

I

here
of

regretfully

the past. We will devote the

the schedule

been

Wednesday and Thursday and

industry. Tomorrow will also
speaker
be a departure from traditions of

keep to

which

also

committees

the

me

are

the full committee reports will be

ton

impossible for

his

result of

a

so

have

it

modify

the press, so my main point

work session

a

to

Way as

One issue whch has

year.

Equalization Tax

is

Because

available

Special Report of the SEC

ing the

of

Comptroller of the Currency, per¬
mitting banks to underwrite rev¬

briefly
primary issues Committee

the

of

some

introduction

sponsored by James J. Saxon, the

lation before the House of Repre¬
sentatives Banking and Currency

which have been dealt with dur¬

unreason¬

Glass-Steagall Act of 1933 by

tion

on

converting a part of
morning's (Dec. 2) session

this

pn

agree

morning's proceedings. We

our

industry's

year we are

been

Cary

any

working sessions,

until "real" consultation has been effectuated.

been

Mr.

urge

I would like to comment

hen

on

has

be most

I

Interest Equalization Tax

delighted that Commissioner Co¬

legislation, and he also calls upon the Government and nonGovernment regulators not to promulgate any rules or regulations

This

would

forward to

and

all with your wives to attend.

you

ob¬

an

will

can' look

sessions

may

proceedings.

you

hear him at this time.

we

rewarding

any com¬

solely that of
think

particularly appropri¬

we

think

I

of

one

now

that

-

source

voice the

is

I

expect

important task its ability

industry to deal with the Government and

role

It is

ate that

session,

which

these

in

speech in

sums up

Mr. Ames charts

we

ob¬

an

able and inappropriate for us to

the principal defect in the proposed inter¬
equalization tax bill in urging opposition to the passage of both

bills.

matters

up

that it

support to end any remaining abuses and undesirable practices by
improving quality and performance of the people working in it. He
deplores the internal dispute over the proposed revenue bond under¬
est

lems.

Se¬

did not want him to

on

server.

pledges to the SEC all-out

writing bill, and

the

;

come

This has been

the

as

feel obligated to make

&

the

working

but that

of America, and Senior

Thursday, December 26, 1963

that

Report;

By Amyas Ames,* Retiring President of the Investment Bankers

we

.

Commis¬

Exchange

Special

poration; And is

.

most qualified men in the country
to speak on world financial prob¬

the

of

wanted him to be here
server

of the

some

out

.

one.

was

Our

re¬

analysis of the Special

Report,

proposal to change

although

Continued

not

on

yet
75

page

Burton J. Vincent & Co.

Chicago

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Cleveland

(

gb

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A. G. Edwards & Sons
"

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Dallas

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Complete Money Service

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for Banks, Brokers and Dealers

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:

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Securities

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Financing

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MEMBERS NEW YORK AND AMERICAN STOCK
EXCHANGES

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Telephone 212 REctor 2-6900
Members New

:

Federal Funds

Teletype: Federal Funds 212 571-1100
Securities & Financing 212 571-1101

Security Dealers Association

550 SOUTH FLOWER
,

...

ST., LOS ANGELES 17, CALIFORNIA

J

Volume

198

Number 6328

.

.

The Commercial and Financial Chronicle

.

11

asks whether

The SEC After the

Special

the industry
inclined

have talked with

we

and is not favorably

toward

legislation when

do

I

not

this

accept

although at times there

analogy,
be

may

a

By

William

L.

Cary,*

Chairman,

Securities

and

fer with* some of my

kept in the dark.

heads who express annoyance and

cism

doubt that prompt action

175
'

recommendations

denies that
of the

cial

made

working with the industry has made the SEC

industry.

banks

ton.

Strong dissents

we

its

moving intoJmutual funds without the benefit of SEC

specific Wall Street

merger

is cited; "front end load"

to

disclosure.

Praise is

of financial

delighted

am

invited

be

to

a

sponsible

and

the

This

promise

Investment Bankers Association. I

fact,

the

third

time

might
at

to

I

say

before

speak

now

feel

mingling

in

h

s

as

mired

the

tions

can

outset

words

whom

past

to

I

been

most

a

dare

go

further in

no

superlatives lest he be tarred
businessman

who

as

turned

has

soft and thinks government is oc¬

casionally
assure

responsible.
he

you:

anything away!

has

promise

Let

consulted
of the

the

two

the

of

Securities

the

same

I do not have

same

month.

any

fear

serve

In sum,

as

appropriate stimuli.

shall

I do not

that

We have the

and

bodies

for

make

con¬

with

discussions

industry
and

working

oppose

the

self-regulatory

fair, reasonable,

responsible solutions. At the

same

time

we

do

not

have

the

illusion that every rule or decision

we

that

to take

up

supported by experience

consider

the program

objective is not to gauge the

emotional | level

industry

but

of the

to

worry,

captive.

a

My

and in my opinion the

can

be arrived at with

J.

Galbraith:

K.

people who
a

bodies,

and

matter

like

carefully

I

before

have

the

case

the in general
to

made

be

Study

Special

Markets

would

be

discharging them. Implementation

10

either

arm

are

an

15

years—they

some

with

exceptions,

or

of the

regulating

or

industry they

With

Since

I

recognize

representing

many

the

IBA

as

leaders of the

securities industry, I have become
accustomed

upon

time

major

our

I

broken

reason

realistic

Trust

be.

OF

NEW

than

to

report

annually

present thinking.

shall
areas

touch

on

the

This
three

of action in which

our

Congress

which

we

structive.
well

is

involved,

Company

YORK

a

dealers in

IN

Federal

X-

Agency Obligations

International Bank for Reconstruction
★

and

United States Government

Development Bonds

★

Tennessee

Securities

★

Valley Authority Bonds

State, Municipal, and Public Housing

★

Federal Agency Securities

★

Authority Bonds and Notes

★

Tax Exempt Securities

★

★

Certificates

of

Government Bond

Deposit

Department

★

Teletype 571-0200 (A.C. 212)
★

★★★★

★★★

Municipal Bond Department
Teletype 571-0205 (A.C. 212)

c. J.
48 Wall

St

Street, New York 5

HAnover 2-2727

-

Teletype 212-571-1118
Chicago

•

Boston

Cleveland

•

•

Philadelphia

Cincinnati




•

•

Washington

St. Louis

Direct Wires to all Offices

•

Pittsburgh

San Francisco

•

v

140

we

beginning.

both
The

regard

bill

Com¬

the
a

itself,

program
as
as

con¬
you

know, involves two primary

U. S. Government Securities
SPECIALISTS

Committee,

has submitted

mission

say

always

good

a

community thrpugh the Industry
Advisory

criticism.)

community

our

Working closely with the financial

for discussion with

one:

into

down

first,

respect to legislation,

support—

or

(I might

—

made

have

Commission is presently

.senile."

be

major areas

Study

II

they

intolerant. Later

may

find support likelv

vocal

financial

the

of
re-

we

less

One was that the Another

may

and the manner and

wise.

the

aggressive, evange¬

even

of

the

comprise them, have

vigorous,

listic,

of

a

Report..

marked life cycle. In youth

are

uhanimity.

Finally, I would emphasize that

implementation

Professor

securities

have

in

roles

spirit in which we may go about

are

logic. At this stage, of course,

to

rather

but

respective

our

well

as

the merits of specific

recommendations

and

they

im¬

or

"governmentaleze." I do not mean

not

practices

action,

that

discuss

plementation as it is described in

need to test them

insure

to

for action

program

a

action has indeed begun. I

—and

be

was

wealth of

it is not academic

recognize,

exercise but

These keep us alert

with industry.
viction

or even

we

industry

business

reactions

our

-

industry

promises.

Report

and
*

press.

roving

a

the recommendations

on

Study,

against

as

me

given

not

has

appearances

my

will

ask why

and

documented criticism

In

in

the

becoming

become,

that

was

by the

Justice,

government,

informally.

as

been

Some may

Since

able.

as

securities

in

they mellow, and in old age—after

well

as

too

fulfilled.

demonstrated wisdom and realism.

a

criticisms

a

all

of

center of the

regard it as necessary and desir¬

has

It

I

the other. I might

on

contains

information and analysis. As you

legislation and rule making—

This
William L. Cary

pleasant association. He has
Perhaps

second

formally

the

year.

heart. It

would consult with the indus¬

we

worked

during

take

may

one

become

The Study

try in advance both with respect

closely

so

investiga¬

of

by British Royal

happen here."

The

about

have

long ad¬

the

on

have

we

"Regulatory

have

private

scrutiny

Department

a

claim that
on

Program for Action

because

under

are

two
proposed
and
second,
the
worry that should haunt all gov¬ belief in fairness and discussion legislation,
ernment regulatory
agencies, is does not mean that we are going changes which you or the Com¬
mission may make without legis¬
over inertia—the loss of initiative.
to procrastinate in our program
lation by rule-making and other¬
This
concern
is
dramatized
by of

a

President,
with

the

Will Consult With Industry

retiring

your

made

I

few

a

In

dis¬

quality

At

should like to
say

the

conducted

Commissions

clothing.

kept.

Economist

Report

p's

e e

flamboyant.

been

"Americans who

bureaucrat

a

the

both

about

following statement:

home

among you

London

cussing

much

very

not

i

is

that the SEC has been subject

only

has

that

and

Frankly,

given for the prompt response and assumption

responsibility in the Ira Haupt matter, and for other

industry self-imposed, voluntary action taken.,
I

the

are

encroaching

newspaper

plan" sales of mutual funds; and the dissemination of full

This

Scylla and Charybdis of

captive

say

"con¬

or

are

hand

"

no

captives.

actions

by the Antitrust Division of the

might

we

enterprise too deeply

commer¬

regulation; growing concentration in the securities industry though
tractual

The

that

all face in Washing¬

we

the bureaucrat

He

captive

a

expressed regarding:

are

fear

your

problem

must be forthcoming in terms of the

by the SEC's special staff report.

the

or

become

SEC head makes quite clear, in his address covering a wide range
of subjects, what is expected of the securities industry and he leaves
no

their

fellow agency

indignation

occasionally

Agency discussions with the in¬
dustry always generate the criti¬

Exchange

Commission, Washington, D. C.

the Special Study.

need for revitalization. Still I dif¬

the responsible leaders have been

Study of Securities Markets

with emphasis upon the Report of

Broadway, New York 15; REctor 2-6400 (A.C. 212)

Coneinued

on

page

47

12

The Commercial and Financial Chronicle

World

World Bank's Role

as

of

Borrower and Lender
Board

v

■

.

,

the

at

eral

Canadian-

fronts.

to assist in the

come

velopment, to

Corporation believes the time has

advanced and

more

more done

see

I

appreciate

much

very

portunity

to

Investment

exceeds

ours as

this

op¬

before

appear

Bankers

I

here,

knew

I

I

want

as

to

accept,
simply be¬

to

talk

to

to

to

about

First,

about

you

sure

I

the

Bank—not only in its role

you

its role

are

as

a

am

familiar, but also in
lender

of

long-term

many

capital.

my

oldest

something

friends

would

going on, as I see it, in the less

of

be

present

and

not

about what

to

say

been

has

world,

that world of develop¬

ment

have

such

want

developed

soon

again

I

impact

would

I

Second,

on

assistance

and

about

from

the

the

Bank

good

a

and

from

national

aid

programs.

my

respects

to

all

in

my

of

happens

to

interesting
and

'

you

new

George D. Woods

capacity.
be
time

of

now

the

or

of

for
a

worse,

generation

we

in

also which the United States, already

This

the

in

members

are

exceptionally

an

development

which I

other

the

greatest producing and trad¬

growth ing nation, has become the great¬
Bank est international source of capital

represent, and whose

as

well.

In this

million to

$560

the- United

remainder

to

pur¬

world.

the

in

end of 1964.

is

used

development, the

basis

of

the
own

techinque

combine

program

is

the

in¬

joint fi¬

the Bank lending

—

while

term

the

development project

a

long

have

we

with

market in

nancing of

and

of their

markets

the

vestment

or

American

the

in

to

raised

shorter-

of

money

ment firms.
the

used

sell

to

million

we

have

the

joint

Altogether,
of

technique

market

the

worth

$340

some

original-issue

of

European, African and Asian pa¬
We have cooperated with 11

per.

borrowers in this way,

of

their first

them,

and for all

joint

opera¬

tion with the Bank enabled them

their

sell

to

United
ever,

can

disbursements
the

until

least

at

the

securities
for

States

the

in

first

the

time

underdeveloped countries.

billion

dollars

shipped in

Bank

be able

to

lender,

we

although by
in

the

Lender

as

borrows,

no

course,

lend; and

operate chiefly—
means

entirely—

Underdevel¬

economically

Asia,

oped

nations

Latin

America

rope.

The net flow of long-term
from

Africa,

of
and

all

Eu¬

southern

an

orderly

such

private, to these countries has
dec¬

a

ade, and last year, reached $9 bil¬
This

figure

kinds

governmental
the

even

of

form

items

investments

private
and

includes many

of

agricultural

grants,
the

in

cotton.

military aid—the
the cost of

purchase

half

public,
this

sources,

of

made

up

about

just

Government

amount.

including the Export-Im¬
States

national
for

Agency for Inter¬

Development,

cult

to

say

how much—was tied

chase

another to the

of American

companies.
I

And

Most

of

include financing designed to en¬
able the

recipient countries, with¬

undue

out

carry

economic

defense.

common'

therefore,

the

is

called

"foreign

fense

somewhat

aid

is

in fact

able to
for

or

establish

smaller than

deal

investment
When

and

credit

own

centers

Especially against the measure
the

of

Bank

our

in

Since

relatively

seem

the

operations in

beginning

the

Bank

its

sold

the

MUNICIPAL

market, had

formance

its

UNDERWRITING

and

lion's

the

share,

for

been

projects

outside

countries

America

and

Europe,

Our

Japan.

ing

countries

aloove

level
The

net

have gotten
million a

$500

portfolio.

Its chief asset

the uncalled portion of the
States

$3%

order

of

some

is

$2 Vi

billion,

PLACEMENTS

Against

this,

of

however,

part

was

of

this

amount,

The Bank has

never

Continued

devoted to purposes

taken it as
on

page

Hallgarten & Co.
Established 1850

was

United

it

its

has

and other assets of

48

bonds.

cash,

loans

$5V2 bil¬

over

lion. Moreover, to proect its bond¬

holders,

the

Bank

subscriptions
cluding
United

White, Weld 8c Co.
MEMBERS

NEW

YORK

STOCK

EXCHANGE

BROAD




STREET,

NEW YORK 6

uncalled

from

$6V2

over

central

the

bil¬
na¬

World

favorably known

are

circles
banks

We

reserves.

Europe.

are

everywhere,

hold

them

as

in fact, in

now,

the

CHICAGO

-

history, and this is

we

PHILADELPHIA
LOS

ANGELES

in

the

FRANCISCO
LONDON
ZURICH

one

in

offer

a

position

44 Wall Street

to keep.

mean

As most

of you will remember,

Bank's

American
SAN

New York

strongest financial position in

our

BOSTON

Investment Securities

in¬

billion,

Canada, Japan and

financial

and

and

Western

Bank bonds
in

20

of

has

$19

billion

$5.7
States

lion from

tions
•••

of

early

market

which

World

it

was

Bank

the

years

was

the

only

possible to

bonds.

Scranton

Chicago

205 Wyoming

231 S. LaSalle Street

Nowa¬

tors

outside

provide

and

in

larger

to

more

investors

look to inves¬

United

funds.

been- able

notes

the

the

borrowed

we

sell

States

part

than 40
outside

of

our

has

bonds

its

and

countries,

the

8

66 boulevard de l'lmperatrice

to

Bank

The

United

Avenue

Geneva

Brussels

days, however,

the

$300 million in the last

fiscal year.

large

in

representing

issues

separate

a

after taking ac¬

figure,

day the Bank's outstanding debt

PRIVATE

to

year.

of repayments, was on

subscription to capital. To¬

•

total

count

first

loan

one

in the
North

disbursements for these develop¬

the

record of per¬

no

only

of

1946, we have

world.

bonds in 1947, it was unknown to

World

underdevel¬

the

countries

modest.

the

figures,

gross

loans

now

in

the

of

the

figures suggest.

gross

has been to

concern

our

The

foreign aid

time to come, so that

foremost

our

CORPORATE

into the market

come
some

for¬

home.

at

a

de¬

and

of being

prospect

no

end,

bill for

for both

and

aid

and

good

a

to

inaccurately

aid"

bill for what is really
is

the

economic

both

support,

eign

In

American

what

for

strain,

of the burden of the

some

how¬

borrowers,

our

have

the

while

quoting do not in¬

am

postwar period.

ever,

so

helped finance exports by Amer¬

for the first time in the

or

pur¬

goods, and

accounted

billion.
A

and

Another large part—Fed¬

in one way or

have

capital, both private

port Bank of Washington and the
United

for

grains

or supplies, made commitments of $7% bil¬
maintaining troops lion, of which about $5 % billion
...

American
and

cereal

as

equipment

military
or

surplus

bookkeeping makes it diffi¬

commodi¬ oped

ties. But it does not include strict¬

ly

of

eral

loans,

and

of aid

flow

direct

—

and

loans

form

A

was

domestic market

items

public bill

sources,

nearly doubled in less than

different

the

it

clude direct military aid, they do

of

to

of

worth

commodities, and helped continue

ican

'

Role
The

16 occasions, helping

on

position

through offerings abroad.

placements by private invest¬

or

two

almost

cash

the

figures

and

the

is to

borrowers,

our

One

the

is such that we

States

United

capital

in

objective,

capital
on

credit.

to

chance to pay
better

Over

others in

ultimate

world

on

are

we

made

expected

order

issues

bond

without further borrowing in

help them to sell their own orig¬ lion.
inal

is

long holi¬

American
now,

and

the Bank

cover

a

all

take

to

the

was

ago,

years

in

elsewhere

of

coin

time the Bank

to

Right

this

of

holiday. Our last American

a

as

the

operation
For

market.

such

the

States,

borrower, with which I

a

was

operations.

chasers

case

you

subjects.

from

days

have sold $1.7 billion of

and

Our

time

which helped the American econ¬

omy as well as the economies of

side

American market.

Joint Financing Technique

speak

principal

World

was

going to have

cause so

want

from
being

commercial banks, insurance com¬

per cent of GNP.

two

our

Thursday, December 26, 1963

.

than one-half of

more

other

that from

States of

apart

paper,

panies

the marketing over the years.

Association.

United

to

loans—some

our

securities many of you have been

When Amyas Ames invited me to
be

a

The

important aspect of our

an

years, we

growth has been accomplished despite overwhelming odds posed by
burgeoning population growth and lower commodity export prices.
Noted, also, is the step-up in Western Europe's financing aid to where
now

from

securities,

financial

complicated stages of de¬

in the field of education, to lengthen

repayment period, and to finance pilot projects. Review of
Bank's performance finds some encouraging amount of real

it

'

.

funded debt.

These sales of loans have now be¬
come

now

the loan
the

States hold
our

selling offering

began

than 15 years ago,

the

in

placed

intent to undertake soft-loans. The former

no

Chairman of the First Boston

con¬

time when virtually no other

a

international

Mr. Woods adds that this will not lessen the Bank's

countries since there is

Bank

more

at

were

obligations

portfolio

being formulated to advance and broaden the scope of the widely
respected international economic capital financing agency into sev¬
new

the

of

fearful and reluctant.

was

investors

reputation for hard-headedness in successfully assisting developing

markets

securities

foreign

own

■

to

in busi¬

effectively shut down; has been able

were

borrowers'

■
/
?:
:
New World Bank head, successor to Eugene R. Black, explains
plans

part

a

and the American market, so far

We

of the First Boston Corp., New York City

■

■■■■

world

capital

cerned,

Development and Former Chairman of the

had

started

we

at the end of the war, most

the

as

By George D. Woods,* President of the International Bank for

has

When

ness

Reconstruction and

Bank

play.

.

London
Austin Friars, E.

C. 2

rue

Petitot

61

Volume

Number

198

6328

.

.

•

13

The Commercial and Financial Chronicle

.

\

i

their fields with rudimentary ox-

The Investment Potential

plows beside the jet run¬

drawn

It has been America's for¬

ways.

tunate

Of

Educated America

an

Benjamin

Willis,*

C.

Schools

of

Superintendent

General

Prominent educator

bluntly states

compositional level

to the suburbs

and the

of the nation's

one

move

but lower tax-base,

cation

of the largest investment potentials in

ment will not pay

the indigent, the
educational

the economy. This invest¬

face up to the fact that the migrant,

we

that obtained in our advantaged suburban

as

Mr. Willis

half-educated

and

warns we no more can

population

half-ignorant

permit

than

condition

a

could,

we

Lincoln's words, have a nation exist half-slave and half-free.
ment

and

made include

proposals

making teaching

as

in

cities

suffering from

Better¬

base to the level found in the

more

The mystery

in

a

of death, the horror

death, the wastefulness

dreadful assassination

and expand education, some

controversial

united in
and

all in

and

us

the

A

10

love
new

rible price

been

family

but

to

willful

President

had

education

as

bonds,

the

borrowing

of

cial

agencies,

and legislative,
cial

law enforcement,
executive, or judi¬

of

arms

government,

are

in the future on the
statements of industry and com¬

written years

Essen¬

ness

and

action.

and

action

education,

as

I

It
as

to

is

aware¬

they apply to

see

them,

and

may
or

be

some

pending
into

exceptions

some

this nancial investment in schools as
proof of your acceptance of these
taken realities, there is another evi¬

to

alteration in balance de¬
upon

account.

the

factors

However, as

a

gen¬

erality it is true that schools are
not only
In

the

big but biggest business.

last

accounted
in

few

years

they have

for the main

employed

increases

belief in the bene¬

dence of your

of

fits

education.

found in your

and

tives

in

the

to

the

variety of pro¬

continued

education

Continued

on

of

your

page

re¬

into

abun¬

keen

a

a

good

means

enjoyed

would be

his

inauguration,
task

a

of

of

and

sorrow

be

can

awareness

was

force

on

of his

members,

six

representative

ors,

well

as

own

education

of

privileged to be one

schools. He lent the full

his office

estab-r

he

as

of

public

weight of

the full force

interest to

endeav¬

our

he did again later with a

as

quickened and our actions sobered

larger group which he convened

and

to

enlightened.

If

for delivery in

prepared
last

testament,

a

as

least one pas¬

at

line to

all, in any relationship

us

endeavor:
".

and

.

time

for

needed.

"So

time

of

do.

com¬

nor

Neither

us

us

is

goals
and

the

fainthearted

the

not

not

be

petty

establishment of the Peace
as a

are

when

great.

of

evidence

through

was

a

further

conviction

his

knowledge

amongst

could

world

the

out

that,

the

and

ac¬

their

find

ways

destinies

in

to
the

startling world of today. Tens of

thousands,

quarrel

great teaching force in

countries

foreign

work

so

willing to

it.

pursue

Corps

twin

excellence in education
availability of that ex¬

as

the quisition of skills, the peoples of

...

let

education.

of his inaugu¬

tion in which he defined the

a

/

conformity

nor

cause

"Let

a

/<
will

placency
fanatics

and

courage

"Neither

month

special message on educa¬

gress a

The

is

this

For

stop.

cannot

challenge.

our

moving

it must not stop.

"It

a

cellence to all able and

This country is

.

study vocational
Within

Austin, ration, Mr. Kennedy sent to Con¬

in it could serve as a guide¬

sage

or

speech,

prepared

been

had

Texas,

President's

late

the

sons

ea/rj<4

even

around

millions of per¬
today till

the world

in

Securities of the United States

fjia/e

and

f$en<A
.yHun

Government and its

•

'

The

Agencies

FIRST BOSTON

Bonds, Preferred and Common Stocks
Vof

Industrial, Public Utility and

Railroad

-I-

CORPORATION

Corporations

Bank Stocks

venue .an

20 Exchange Pl.

Company Stocks

NEW YORK 5

-

•

.-

Deposit

New York
r

Reconstruction and

DIgby 4-1515

/;■"'/'

:./v'

v

dJnve&tment

Philadelphia

Cleveland

'

'

\

(Underwriter Q)(4lriiuior

Development

Canadian Securities
External Dollar Securities

San Francisco

Chicago

San Francisco

Securities of the International Bank for

Phelps, fenn & Co.

Pittsburgh

Boston

Acceptances

Certificates of




•

Casualty, Fire and Life Insurance

Bankers'

Cleveland

"

State, Municipal, Revenue and Housing
Securities

be

industry sponsors for

grams your

persons.

is

This

forums for execu¬

strong America in which the

the

as

expression
our

fu¬

mankind

all

lead

composed

derly government and in the na¬

sanity,/

of

balance

Our

declare.

sheets, like that of churches, so¬

future—

in

which I

Benjamin C. Willis

ordained continuation of or¬

tional

the

for

late

lished

immedi¬

e

ate,

a

fore

of
ex¬

tremes. But in
t h

that school boards turn for the

to

by the greatest number. Even be¬

insistent

passions

shall

greatest

for

country
the

hopes

interest

this

by

ers

to

dends

and profit. We
split, no divi¬

year

stock

cause—

our

frontiers of peace and

The

a man

and his

as

keen awareness of

no
no

the

in

on

dance."

has

paid not

only by

a

carried

which you hold paper

heritage of the past

our

our

have

have

on

determined that this land we

ter¬

last

days.

in

confidence

newed

mirror

a

to

up

Presi-

a

nature.

tially, however, he sought aware¬

with

stand together

extremist

problems and means to im¬

of

nation's

our

education,

or

prove

stake.

us

have

dent

held

of

when

at

"Let

man's death, and the

young

is

ture

caustic

to the

affluent sections of the country.

ourselves

bankers

investment

and

persons

and ample sale

of

needs

than

ness

of violent

greater. Edu¬

criticism of it. He sought solutions

declining per-family taxable

a

so¬

investment. The process

on

education

a

and

rather

increasingly honorable profession, and bringing about learning

situations

are

of high quality

lems,

in

attractive

more

a

own

of

shows

Awareness

Th§ investment banking indus¬

There try

life.

our

turn

businesses,

financial re¬

was seen by Mr. Ken¬ money as needed, and other fiscal
major remedy for the transactions. In every community merce, and in the intangible bene¬
present and a wedge for the fu¬ the educational institutions repre¬ fits of health, civic competence,
and the true happiness of our peo¬
ture. He was, of course, not alone sent the
largest single category
ple, as well as on the pages of
in this; he did not invent the idea; for
capital outlay, usually; the
national dignity and honor.
it did not die with him. He sought
largest single operating budget,
sober analysis of the status, prob¬ and the
Aside from your continued fi¬
largest employer. There

nedy

culturally deprived child must be afforded as good an

opportunity

school systems.
of

off unless

in

the schools show no

schools

opportunity

largest participants in the investment market,

employer of labor and purchaser of goods, but it also constitutes
one

sophisticated

elsewhere

lags

disad¬

Not only is educa¬

into the cities.

the

in

ciety of grievous seriousness and the investment potential of educa¬
of egregious consequence;
many tion. It is to the investment bank¬

the more affluent tax-base moves

numerous

more

vantaged school population
tion

as

to

cultural lags

remarks

spirit of his remarks I quoted be¬

other

most

Unlike

late
wish

I

technology; fore.

f

o

these

address

to

being catapulted from primi¬

are

fluent truths about educa¬

some

evolve with

to

most of the countries of the world

tive

Of the City of Chicago, Illinois.

tion— its

evolution

the

are

By

advantage

that

solutions

President's

the

to

reference

without

;

(dealer

SfecuritleA

71

The Commercial and Financial Chronicle

14

Backgrounds of the New

daughter and two

a

and the

sons

family lives in Highland Park, 111.

activities in

His

former Evelyn R. Carr. They have

organizations

MARK

Club

Bond

Education

Industrial

President-Elect
&

Harris,

Partner,

Co., Chicago, is the
of

dent

the

Association

new

Investment
of

Bache

Group

Presi¬

He

Ames,

Sen¬

a

At

ior Partner of

Kidder,
&

N,e

States

York.

w

Co.,

Following

o n

1935,

Sills,
&

its

the

on

held

positions

other

industry

Vice-Chairman,
National

No.

8,

Securities
of

Exchange,

of

Dis¬

1953-55;

Midwest

the

of
or¬

Association

Dealers,
the

1959-63;

Chairman

with

he

Stock

is

Midwest

now

Stock

David J. Harris

Exchange

President in 1944 and President in

with

also

Governor

Minton

He

served

years

in

of

Mr.

Co.; he became Executive Vice-

1945.

was

Central

IBA

trict

securities

business

he

ganizations:

of

Harris entered
the

the

leadership

continued

President

as

organizations,

successor

(term ending in 1965);

he has also been

Chicago
1956.

Board

Mr.

of

member of the

a

Trade

of
is

Harris

of Directors

the

on

the

since
Board

Liberty Loan

Sills, Fairman & Harris, Inc., and Corporation, Kaufman & Broad
Fairman, Harris & Co., until the Building Corporation, and Colo¬
latter
in

merged with Bache & Co.

nial

May, 1956. He then became Ad¬

ministrative

Resident

Partner

of

Bache & Co. in Chicago in charge
of the Middle West

Since

1959

he

Regional Area.

has

also

been

a

Acceptance Corporation.

His

activities

fairs

have

the

on

School

in

af¬

membership

of

the

Highland

Park

member of Bache & Co.'s Execu¬

Community Chest Drive in 1958.

tive Committee.

Since

Active

in

group

national

and

activities of the Association since

1948, Mr. Harris has been

a

Vice-

President for the past three years,

the

ships

and

Delta

A.

War,
he

turn

Kappa

are

Harris

Weld

MBA

be¬

Man¬

for The Reading Iron Com¬

pany

until 1925, when he entered
securities

business

as

sales

with Banks, Huntley &

Co., Los Angeles. In 1930 he went
Resident Partner of

Bi B. Robinson Co., a firm active

utility reorganizations and in¬
trust

vestment

wholesaling.

returned to Los

executive

become

Lester

Co.

Co.

&

Vice-President

When

Pacific

and

He

Angeles in 1939 to

Co.

Lester

1951, forming Lester, Ryons &

Co., he became
new

serving
as

IBA

in

as
a

a

activities,

Governor,

1958-61

golfing and

curling

Legislation

j

is. married

to

Industrial Securities Committee,

spent

re¬

was

of

the

Mr.

1936, he

tive

in

in

the

U. ;S.

the

war

aboard

Lloyd B. Hatcher

North

city, and New York. He

general

of

member

partner

firm's

the

Mr. Hatcher has

and

Executive

been active in

1940, serving

as

the U.

N i

m

Chief

of

the

leased

mittee, 1940-42

Nominating Committee, 1959-61

;

*

Curtis

tee, 1951-52; 1956-62

1961-62

Governmental

the

Com¬

mittee, 1952-53

Committee,

active

Fleet.

Re¬

in

duty

following

In

he

1950,

Partner

1945

as

year

became

specializing

-

a

in

responsible for all the

now

investment

tivities.

1954

appointed

was

Secretary

and

banking

ac¬

;

*

Mr. Pratt

on

Chairmen's

Group

is

firm's

sistant

Securities

in

Commander

Pacific

corporate underwriting activities;

Municipal Securities Commit¬

Committee,

the

joined Paine, Webber, Jackson &

he

Com¬

in

the staff of Ad¬

i t z,

from

General

Attendance

served

the rank of Commander, he

Counsel.

lowing national committees:

in

Navy

he

S. Texas

S.

on

miral

Chairman of the New York Group,

Convention

&

Atlantic, at the Naval War

College, and

with

IBA affairs since

-

Procter

Goodwin,

During

duty

1940.

or¬

a

Albert Pratt

prac¬

with

Hoar of Boston until called to ac¬

joined White, Weld & Co. in 1953
is

o n

Harvard

ticed

Atlanta,

and

a

Beta

Law School in

in

with

his native

earned

gradua ti

business,

both

Harvard

from

en¬

ganizations

from

Kappa Key.

holding posi¬
tions

Cum

Following

has

various

Magna

Laude in 1933

Phi

Mr.

his

was

graduated

he

degree

career

Bosto-

College where

the securities

1957-58

the

Vice-Presi¬

a

from

birth,

Committee, President 1962-63, and on the fol¬
v

Arrangements

,

Senior Partner of

elected

was

1960-61, Governor, 1961-62, Vice-

member of the following

1945-46

His

Albert Pratt, a

nian

Harvard

Hatcher

Davids has been

national

national committees:

(Chicago),

PRATT

Vice-President

Paine, Webber, Jackson & Curtis,

Committee.

Since 1945, Mr.

and

partner of the

a

firm.

active

a

his

1931.

two

their

and

ALBERT

HATCHER

Vice-President

&

consolidated

Country

Epsilon.

in

tire

of

B.

Co., New York,
a

received
Mark Davids

ager

in

is

Republic.

Institute, he

E

re¬

to Chicago as

they

and

Storage

and

Association. A graduate of the Vir¬

from

the

&

elected

Pacific Coast District

manager

former

the

to

children live in New York City.

a

ginia Military

his

Mass.,

Co.

Lloyd B. Hatcher, Partner, White,

a

during

World

married

Pratt

in

F.

France

came

Supply

Angeles,

Boys

He "is

Barbara Holdsworth of Brookline,

Club,

Cold

&

in

Club

Driving

Atlanta.

Vice-President

the

in

Upon

of

the

as

E.

Ice

Los

LLOYD

First Lieuten-

ant,

Federal

Club, all in New York, and
Piedmont

dent of the Association. A

Army,

member¬

Exmoor

during the winter.
Mr.

tees:

into

serving

Holmes

the

Uni¬

Bay

Country Club, and Lloyd Neck

Boston,

diately

S.

Club,

Bel-Air

mi¬

Park Hospital.

Club, University Club
hobbies

on

commit¬

trustee

a

fraternity

include:

and

national

been

e

affilia¬

in

and

State

Club

Governor of the Association

following

he has

the Highland

1956-59, and has served

was a

from

of

1958

ni

County District 107

Board, 1954-57, and chair¬

manship

Trustee

in

local civic

included

Lake

from Stanford

Presi¬

as

club

ton

Bath

an

Exchange Club. He is

of

of

served

California

and Stock
Director

Co.,

U.

in 1955-56 and for

Harris has

Chicago
in

of

Group

several

from the Uni-

versity

level

regional

Los

and

went

Group's Executive Committee. Mr.

his

gradua ti

the

Chairman

Pea-

body

Committee,

Committee and

Other

Club,

versity

he

1917

Membership Committee, 1956-57
Nominating Committee, 1958-59

A my as

ceeds

of

native

Commit-

Finance Committee, 1956-59

suc¬

A

of

and

1959.

are:

graduated
University

Chairmen's

Vice-President

a

Association.

Angeles,

1955-56; Chairman, 1957-59

Bankers

America.

elected

the

tee, 1952-55

..

J.

David

Securities

of tions

Lester, Ryons & Co., Los Angeles,
was

in

dent

Mark Davids, a Senior Partner

Committee, 1948-51

Committee,

active member of The Los Angeles

DAVIDS

Vice-President

The slate

HARRIS

on

Nominating Committee. He is

Principal IBA Officers

DAVID J.

Thursday, December 26, 1963

.

service

District

Business Conduct

of officers elected at the Convention on
Dec. 5 included a new President and five VicePresidents, one of the latter being named for a sec¬
ond consecutive term. The official biographies of
each of these officers follow:

.

other industry

include

NASD's

the

.

an

As¬

of the Navy

served

in

this

in

position

leave of absence from his firm

until

he

returned

to

in

Boston

1960-61
1957. For his services
He

also

is

active

in

other

in¬

Secretary,

he

as

Assistant

awarded

was

the

dustry organizations, being Presi¬
dent of the Municipal

OUR EIGHTY-FIFTH YEAR

Distinquished Civilian Service

Medal, the Navy's highest civilian

of

New

both

the

and the

SERVICING

York.

York

and

New

a

York

Bond Club
member

Bond

of

Municipal Forum in New

Club

memberships include:
/«

'

decoration.

Club

Active

1948,

'

Mr.

Chairman

„

,

in

IBA

activities

Pratt
of

has

the

New

Group,

1952-53,

as

Governor.

a

BROKERS AND DEALERS
SINCE 1878
A Wide

Range Of Investment Banking Services

Underwriters—Distributors—Dealers
Municipal and Corporate Bonds
Unlisted

and

Canadian

Securities
A.

Inquiries Invited

Members

New

York

American

Stock
Stock

BROAD

r1".
2

Exchange

STREET

5, N. Y.

Teletype 212-571-1280 and 1281
DIRECT WIRES TO

Elkins, Morris, Stokes St Co.

Burgess & Leith

Cruttenden &

Philadelphia

Boston

Los




Co., Inc.

Angeles

Bonds

ESTABLISHED 1891

'

BROADWAY, NEW YORK 4, WHitehall3-4141

-

60 EAST 42ND STREET, NEW YORK 17, MUrray Hill 2-6350

NEW YORK

Telephone HAnover 2-5000

or

Members New York Stock Exchange and other principal Stock and Commodity Exchanges

Exchange

N. Y. Cable Address: Accurate

20

Large Blocks of Stock

GOODBODY & CO.

ASIEL & CO.
Members

on

Stone

&

Youngberg

San Francisco

N. Y. TELETYPE: Wire Room 212 571-1212

Trading Dept. 212 571-1215

Branches in
Athens, Ga.
Atlanta, Ga.

Chicago, III. (2)
Clearwater, Fla.

Fort Lauderdale, Fla.(2)
Fort Worth, Texas

Birmingham, Mich.
Boston, Mass.
Bradenton, Fta.
Bradford, Pa.
Buffalo, N. Y.
Charlotte, N. C.

Cleveland, Ohio
Cocoa, Fla.
Coral Gables, Fla,
Dallas, Texas (2)
Detroit, Mich.
Flint, Mich.

Houston, Texas
Huntsville, Ala.
Jacksonville, Fla.

Jamestown, N. Y.
Jersey City, N.J.
Louisville, Ky.
Memphis, Tenn.

Miami, Fla.(Z)Milwaukee, Wis.
New London, Conn.
Niagara Falls, N. Y.
Orlando, Fla.
Palm Beach, Fla.
Passaic, N.J.
Paterson, N. J.
Pittsfield, Mass.

Pompano Beach, Fla.
Rochester, N. Y.
Royal Oak, Mich.
Petersburg, Fla. (2)
Sarasota, Fla.
Tampa, Fla.
Wilkes-Barre, Pa.
Winter Park, Fla.

St.

as

England

'

University, Wall Street, Hunting-

since

served

Volume

1958-60, and

Number

198

the following

on

6328

na¬

tional Committees:
State

Legislation

Committee,

Committee,

Taxation

1953-54

,

Committee,

.

Mr.

Com-

Acts

1958-63;

Chairman

1959-63

Orleans.

industry organizations

Association

Gov¬

a

—

of

Director

past

a

the

Greater Boston Chamber of Com¬

of the Bond

merce, and a member

Club of Boston. He is
the

Instrument

Corporation;

FMA, Inc.; Itek Corporation;

Laguna Niguel Corporation; Radi¬
ation

Research

Library
Presi¬

former

a

of

Greater New Orleans.
the Board of Directors

following

corporations:

Steamship Lines, Inc., Kal-

dratane

Gas

Blossman

Inc.,

&

P

Hy-

H

Tube

Corporation, Louisiana-Delta Off¬
shore

side

Corporation, and the Lake¬

Mr. Labouisse is married to the

daugther and two grand¬

children.

of

the

United

Fund

Greater

of

Boston;

past

rently

Director of the Associated

a

Harvard
Dexter

Hill

CHARLES

are

President

Clubs;

School

and

Trustee

and

School; and

a

cur¬

of

the

C.

Charles

C.

las,

elected

was

Vice-President

a

Association.

the

of

The

voted

his

BERRYMAN,

Hill

Street

Bank,

A. G. Becker & Co., Chicago
BAKER, PHILIP D.
White, Weld & Co., New York
BAKSTANSKY, PETER
The American Banker, New York
BALL, Jr., TOM
Bache & Co., Houston
BANNARD, WILLIAM N.*
American Securities Corporation,

Columbus

ALEXISSON, GUSTAVE A.
Walston & Co., New York
ALLAN, JOHN*
The

New

York

Times,

New

York

M.

Leedy, Wheeler & Alleman,

Orlando

New

ALLISON,
M. E.

MILTON E.*
Allison & Co., San Antonio

AMES,

Dow

AMYAS*

Jones

&

&

Co.,

New York

Strudwick,

S.

Bleichroeder,

Carl

career

business.

gradu¬

Upon

ating from the
University

Yacht Club and the Cruising Club

Missouri

Mr.

is

Pratt

married

to

the

have five children:

Mrs. Alice

the

Webb, Cornelia Sanford, Nina

Lee, Frederick Halfdan and Kate
Nickerson.

b

When he

Members New York Stock

Pierce

&

Co.

P. LABOUISSE

Labouisse,

Howard,

Weil,

in

1933,

he

elected

Partner,

Labouisse,

Friedof

gradu
from

a

State
many

ting

was

Mr.

he

of

the

&

John P. Labouisse

Co.,

then,

he

richs

has

the

until

been

a

partner

Chairman

Group,

Taxation

is

in

No.
of

NASD

former

a

Chair¬

a

11

Ithaca

Kingston

•

Latham

Stroudsburg, Pa.

Virginia Beach, Va.

Cincinnati, Ohio

Chicago, 111.

&'Company... .Denver, Boulder, Colorado Springs, Fort Collins, Grand Junction, Greeley,
Pittsburgh, Pa.

of

6

the

National

Dealers/

corporations:

,

Ty¬

a

is

a

s-Tarrant

member

of

Counties

Hanrahan 8c

Council,

a

of

as

well

Wayland




Worcester, Mass.

,

Cincinnati, Ohio

•

Janney, Battles 8c E. W. Clark, Inc...... Philadelphia, Germantown,Bethlehem, Easton, Johnstown,

Johnston, Lemon 8c Co..

as

a

Loewi 8c Co.,

former
He

College.

Camden,

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

Incorporated

Woodbury, N, J.; Dover, Dela.

Washington, D. C.; Alexandria, Va.

.Milwaukee, Appleton, Beaver Dam, Chippewa Falls, Green Bay,
Janesville, Kenosha, Madison, Monroe, New London, Racine,
Waukesha, Wausau, Wauwatosa, Wisconsin Rapids, Wise.

,

member of the Dallas Country

is

he

presently

Mead, Miller 8c Co.

.Baltimore, Md.

town

Committee

Piper, Jaffray 8c Hopwood

First Vice-Presi¬

Billings, Great Falls, Mont.; Fargo, No. Dakota; Rapid City, So. Dakota

Prescott 8c Co..... Cleveland, Shaker Square, Canton, Columbus, Sandusky, Youngstown, Toledo, Ohio

manship Club.
He

is

married

Sutro 8c Co..

to

.Minneapolis, St. Paul, Rochester, Minn.;

Down¬

Club, Dallas Club and Sales¬

...

San Francisco, Los Angeles, Berkeley, Beverly Hills, Fresno,

Hayward, San Jose, Calif.-

former

the

they reside

in Dallas.

Charles

FOREIGN
CORRESPONDENTS-

They have two children

son,

in Rauscher,, Pierce

affairs, serving a term as a
District

Chattanooga, Tenn.

Co., Inc

Hill 8c Co.

Park

—a

Com-

participated

,

the

C.

Pierce,

Jr.,

who is in the Sales Department of

also

San Antonio, Brownsville, Dallas, Houston, Tex.

Elder 8c Co..

Levine's Depart¬

Melverne Rawson, and

y /
Review

,0*

Club, Dallas Athletic Club (where

Committee,

I

Chicago, IlL

.Hartford, Conn.

A. G. Edwards 8c Spns
.St. Louis, Clayton, Crestwood, Mo.; Tuscaloosa, Ala.; Phoenix, Ariz.;
El Dorado, Jonesboro, Little Rock, Ark.; Lakeland, Naples, St. Petersburg, Fla.; Belleville,
Jacksonville, Springfield, III.; Hutchinson, Salina, Topeka, Wichita, Kans.; Lake Charles,
Shreveport, La.; Bartlesville, Oklahoma City, Tulsa, Okla.; Houston, Dallas, Amarillo, Denton,
El Paso, Exchange Park, Ft. Worth, Lubbock, Sherman, Wichita Falls, Tex.

Chairman

Commission, and the Dallas Citi¬
zens

Committee,

of

•

Watertown,

Lancaster, Norristown, Phoenixville, Pittsburgh, Sunbury, York. Pa.;

Pierce

the fol¬

mittee, 1960

member

•

■'

Mr.

is

Bond

Administrative

NASD

Hornell

Richmond, Charlottesville, Fredericksburg,

Dittmar 8c Company, Inc

affairs,

Securities

following

Trustee

Committee,
-AJ.•

has

•

Utica

•

Chapman, Howe 8c Co

the board of directors of

on

1953-54,

.>■/

1953-54

Geneva

Cooley 8c Company

dent), Petroleum Club,

Chairmen's

Savings

•

Syracuse

Pueblo, Colo.; Chicago, III.

of President).

1948-63

He

Boettcher

Committee,

Controls (of which he is also Vice-

D

Governor, 1959-61, and on

<

;

Betts, Borland 8c Co..

Corporation, and Universal

lowing national Committees:

1953-54

Elmira

•

Suffern

Benj. D. Bartlett 8c Co.

Stores, South Padre Invest¬

Company.

Federal

•

Anderson 8c Strudwick

following

ment

Southern

Group

Auburn

Oneonta

CORRESPONDENTS.

Governor,

ment

Active in IBA affairs since 1948,

the

as a

remain¬
1946. Since

Mr. Labouisse served as
of

•

for

served

Committee

active

District

the

Weil, Labouisse, Fried-

and

Middletown

AVENUE, NEW YORK CITY

>.

son's Foods, Inc.,

partner

Howard,

on

also

co-founded Lamar,

Kingston and Labouisse,
a

,

1960-61

Pierce

He is

and in 1934 he

ing

has

Legislation

Association

firm of Harris
Forbes

and

Long

York

New

NEW YORK STATE:

PARK

3

business. Tni1 1 y

Committee

He

Membership

securities

a

1963.

375

in

career

t i

LONDON

Presi¬

Chairman of the

as

nationally

man,

the

joined

Corporate and Municipal Securities

H.

Nominating Committee, 1960-61

en¬

tire

77

Underwriters and Distributors of

Chaplin, McGuiness 8c Co

has

his

page

1948-63

Mr. La¬

spent

years.

State

University in

1929,

on

STREET, NEW YORK 5, N. Y.

new

committees:

Tulane

bouisse

Continued

Group of IBA, where

Legislation

1959-61,

Since

tion.

in the Texas

be has served

the IBA

Associa-

the

Rico, New York

y

Mr. Pierce has been very active

Vice-President

a

elected

was

dent of the company in

richs and Company, New Orleans,
was

He

company.

Vice-President
P.

Puerto

Exchange\ American Stock Exchange and Principal Commodity Exchanges

42 WALL

of

John

and

named Vice-President of the

John

FRANCIS*
Development Bank for

Government

Rauscher, Sr. organized Rauscher,

<

JOHN

BO WEN,

GARL M. LOEB, RHOADES & GO.

National Bank

Dallas.

Co.

-\

the Mercantile

Charles C. Pierce

in

York

Securities

Division

M.

New

BORKLAND, Jr., ERNEST W.
Tucker, Anthony & R. L. Day, New York

GEORGE deB.
Drexel & Co., Philadelphia
BENNETT, FRANK S.
Cutter, Bennett & Co., New York
BENNETT. WILLIAM
International Bank, Washington

& Mrs.

Washington
BOESEL, RICHARD E.#
Hay den, Stone & Co., New York
BOGARDUS. ALLEN B.
Watling, Lerchen & Co., New York
BOGERT, Jr. H. Lawrence
Eastman Dillon, Union Securities &

was

employed

live in Chestnut Hill, Mass. They

L.

he

1927,

of America.

former Alice Mathea Lee and they

York

New

York

BLACK, Jr., EUGENE R.*
Lazard Freres & Co., New York
BLAKE. SIDNEY S.
Janney, Battles & E. W. Clark,
Philadelphia
BLEAKIE, JOHN M.
W. E. Hutton & Co., Boston
BLEWER, CLARENCE F.
Blewer, Glynn & Co., St. Louis
BLISS. ELLIOTT
Halle & Stieglitz, New York
BLUM, ANDREW M.
Gregory & Sons, New York
BLYTH, ROBERT B.*
National City Bank, Cleveland
BOCOCK, FREDERIC S.
Scott & Stringfellow, Richmond

E.

BELL,

S. DAVID*
Rowles, Winston & Co., Houston
ADDISON W.*
Arthurs, Lestrange & Co., Pittsburgh

ARTHURS.

in

Boston,

,

Co.,

Angeles

Company,

ERWIN W.
Investment Bankers Association,

The Chase Manhattan Bank, New York

of

of

H.

&

Los

Trust

securities

Duxbury

Club

vard

ALAN

Walston

BEEBE, JOHN

S.*
Hanover

BOEHMLER.

St. Louis

M.

Loeb, Rhoades & Co., New York
BEAUBIEN, ANDREW S.
L. G. Beaubien & Co., Montreal
BEAUMONT, ALLEN B.
William R. Staats & Co., San Francisco

York

ARNSPIGER,

Denotes Mr.

BARNARD, Jr., HAROLD D.
'
Dean Witter & Co., New York
BARNES, DONALD E.*
Childs Securities Corporation, New York
BARROW. W. RUSSELL*
Barrow, Leary & Co., Shreveport
BASS. HUGH
Metropolitan Dallas Corporation, Dallas

BEDE

New

ARNOLD, II. WILSON*
Arnold & Derbes, New Orleans

*

New

York

A. G. Edwards & Sons,
BEATY, RICHARD N.*

HENRY H.*
&

Manufacturers

BEATTY, FLOYD H.

J.

Buffalo

CHARLES

BISHOP.

BATTLES, WINTHROP H.
Janney, Battles & E. W. Clark,
Philadelphia

Richmond

ANDERSON, HERBERT R.
Distributors Group, Inc., New York

Arnhold

Philadelphia
CURTIS H.*
Walter & Hurry,

Bingham,

Irving Trust Company, New York

Harris Trust & Savings Bank, New York
AMAZEEN, EDWARD S.*
William Street Sales, Inc., New York

HOMER R.*
Trust Company,

Marine

BINGHAM,

BARKER, ROBERT W.

ALTGELT, E. J.*

Chicago

PETER
Co., New York

BIANCHETTI, ALFRED J.
J. A. Hogle & Co., New York
BIDDLE, PEYTON R.*
The Philadelphia National Bank,

BAIRD, ANDREW M.

Boston

ALBIN, JOHN S.
The Ohio Company,

ALLEMAN, Jr., FERG

The

Richards

& Co., Los Angeles
GILBERT
Hirsch & Co., New York

Department of the Treasury, Washington
AHEARN, JOHN XV.*

&

Bache

BACH,

Minneapolis

to

tire

Boston, City Club,

BERNARD,

Inc., New York

M.*

Company,

BERGQUIST. P. ALDEN*
The First National Bank,

Co., New York

AYRES, Jr., ROBERT M.
Russ & Co., San Antonio

Savannah

AHEARN, DANIEL S.

State

OSCAR

Allison-Williams

BERNDT. ALVIN H.
Lord, Abbett & Co., New York

en¬

the

j§t

Club,

Cpuntry Club, Metropolitan
(Washington, D. C.), Har¬

Club

M r.

Pierce has de¬

of Overseers of Harvard. Club af¬

Union Club of

native

A

Texan,

member of the

Somerset

AHBE, JOHN L.
Distributors Group,

ARNHOLD,

of

President

Rauscher, Pierce & Co., Inc., Dal¬

Visiting Committee of the Board
filiations include:

PIERCE

Pierce,

Chestnut

The

Co.,

&

Craig-Hallum, Kinnard, Inc., Minneapolis
ANDERSON, ROBERT, D.
Distributors Group* Inc., New York
ANGLIN, THOMAS L.*
Mackall & Coe, Washington

Vice-President

BERGMAN,

•

BABICH, LEO B.*

Chisholm

ANDERSON, MERRILL

and varied. He is President

many

Shields &

LEE

Varnedoe,

Anderson
one

j

LOUIS

AUER,

/

ANDERSON, GEORGE W.

have

His activities in civic affairs and

organizations

JAMES S.
Company, New York

they reside in New Orleans. They

Moore,

Simplex Wire & Cable Company.
educational

&

ANDERSON, DONALD L.*
Chiles & Co., Omaha

May

and

Corporation;

Allen

and

Olive

former

/^\

J_

Kidder, Peabody & Co., New York
ANASTASIA, ALBERT A.*

Shopping Center.

director of

a

following corporations: Bow-

mar

Trustee

a

Memorial

Corporation,

var

City of New

Visiting Nurses Asso¬

on

the

Delta

&

Sewerage

also

and

dent of the

He is

of the New York Stock Ex¬

is

Howard

of

change,

the

currently

1

j]} AtteiKianCe tit COnVOntlOIl
ADLER,

is

and

of

He

active

been

15

A

Y

ABRAMS,

has

affairs

member

a

Committee, 1960-61

He is also active in several other

ernor

Club, Boston Club and

ciation of

Research

Club

Country

Labouisse

civic

the

.

Securities

mittee,

memberships include

Metairie

Water Board for the

'

Federal

Club

9.

Louisiana

in

Bond

Federal

No.

Committee,

1952-53

1952-53

The Commercial and Financial Chronicle

.

Delta Kappa Epsilon.

Chairmen's

Savings

.

the

1948-52; 1957-58
Group

.

&

Co.,

daughter, Susan, who is
at

Hockaday School.

a

and

a

Ian Potter 8c Co.

Melbourne, Australia

Flood, Wittstock 8c Co.
Roldos S. A.

Toronto, Canada

Montevideo, Uruguay

r—•

Greenshields Ltd.
Yamaichi Securities Co.,

Mercantil De Inversiones S.A.

junior
Foreign Representative, Hong Kong

Montreal, Canada

Ltd.

Tokyo, Japan

Caracas, Venezuela

The Commercial and Financial Chronicle

16

the

IBA Memorandum

Selling

on

Special Study Report that deal

with

"selling

make

a

practices"

and

proposal of policy

to

to be

considered

by the industry.

This

committee

Practices of American

is

men

whose

firms

made

of

up

Document described as "A Proposal of

lated Recommendations
of

views

Hoc

Ad

an

in

the

SEC

Policy and

an

in

perience
need

ac¬

of

the

areas

markets,

'/

over-

funds.

They

"First, I would like to trace the

history of the idea that led to the

business

our

all

are

of wide

ex¬

and

so

introduction.

no

"Our

Ames

Amyas

mutual

and

announced at the convention that

President

of the

listed

—

known to you as men

many

selling practices recommendations made in the report submitted to
the Securities and Exchange Commission.
Retiring

most

in

business

all

are

the-counter markets, underwriting

Analysis of Re¬

Special Study" sets forth the

Committee, either pro or con, of the

tive

in

business

do

parts of the country, and

Securities Industry

Thursday, December 26, 1963

.

simple

was

a

the

Francis Kernan

Amyas Ames

in

procedure

Albert Pratt

committee

After isolating

specific

one.

the

recommendations in
Special
Report
that
con¬

each

member to arrive

with

counsel

2,000 copies of a 38-page memo¬ Memorandum on Selling Practices
cerned selling practices, we asked
randum setting forth the views of which each of you now has. The
art

with

Committee

Hoc

Ad

Liaison

re¬

spect to certain of the recommen¬
made

dations

to

mailed
for

office

the

of

members

main

every

consisted

Committee

of:

Amyas Ames (Kidder Peabody

&

Weld

(White,

Kernan

Francis

Pratt

Albert

Webber,

(Paine,

in-

the

Special

to

draw

up

proposal.
differences

of

com¬

a

there

Naturally

mon

,

opinion

and

We agreed with Commis¬
Cary that the most effective varying degrees of emphasis but
I - can report to you that there
procedure, in fact the only prac¬
,

tical procedure, was

sections—to

one

on

Practices

tance.

He

to take it in

put the spotlight of

after another.

ing

Co.).

an

sioner

reason

& Co.).

in

at

with the
discussed dependent solution. We then met

Report.

IBA,

and branch

throughout the country.

The

we

were

recommendations

Special Study Group were being
one

met

the problem of processing all the

by its

SEC

the

to

Committee

SEC in October and

of

area

He

problems

remarkable

was

mittee
"It

designated Sell¬

agreement

on

is

the

of

the members

tween

matters of major

not

function

the

be¬
com¬

committee

or

the

"It is hoped that this
dum will

(1)

memoran-

focus the attention

set

policy for the Investment of the industry on the problems
preliminary suggestions Bankers Association of America involved in future rules or guides
Donald Regan (Merrill Lynch, develop
"selling
to
be
practices"
as
to how they might be solved. or for the industry in general, but on
Pierce, Fenner & Smith Inc.).
devel- adopted by the SEC and the selfHe indicated that the SEC would wise policy can only be
Avery Rockefeller, Jr. (Dominafter
men
qualified
by regulatory agencies; (2) develop
at the same time be developing oped
ick &

Jackson &

study this

Curtis).

Dominick).

Foshay

W.

their

preliminary

bility
Presentation
Below

reproduce

we

the

the

Memorandum; text of his fore¬

dated Dec.

2, 1963; and the "Sum¬

are

traditions by going into a working
session
Beach

the

ent.

ters
,

here

at

Hollywood

our

Convention, with

press,

But

we are

we

this procedure

our

it

as

places

us

velopment
under

of

the

we

are

"Certain

of

the

problem

relate primarily to

do

to

areas

the stock ex¬

wives, changes, others to the NASD

dealing with mat¬

weighted

with

the

of all kinds

it is appro¬ try.
thinking in

or

So

we

are

of either business

too

government

or

rigid;

and

the

industry

dorse,

we

like

coun¬

small ad

study and to

mailing

two

an¬

thousand

copies

to

the members of the IBA, one tor

normal markets. The Special Report is crammed full of

criticism.

and

main

the

asking everyone

branch_ office

country. We are
to

nQw

will

we

industry

agrees

criticism beyopd that believed in

our

proposed for all the criticisms,

make

two

study it and differences

make critical comment where in-

dicated.

took

whether

a

the

disagrees

or

SEq

and

Stock

the

jn

that

position of

UNDERWRITERS

Exchanges,

and

every detailed criticism by compounding
new
rules.
Such
a

could hurt the economy,
it could reduce a vital industry
the that supplies capital and creates
on

course

i°ks for Americans—into

plodding, bureaucratic and
economic operation.
Y

be

"To return to my point of em-

phasis, this memorandum clearly

deeply worried

am

brought

being
the

cause

SEC

bodies

the

or

to

to

work

outlines
mit

BROKERS

will hurt

we

healthy and important industry
this

country

In
on

firms

by

short, I
the
in

unnecessary

hope

submitting
this

like

before

to

will

you

that

procedure
a

all

memo-

security

negotiations

estab-

lish

rigid positions and insist

this

procedure

,

"My

second

as

implement

dustry

with

1,

we

can

we

listed

realize the ob-

jechve of both government and

Spencer Trask &

Co.

STREET, NEW YORK 4, N. Y.

where

There

agreement

common

on

SCHENECTADY

WORCESTER

in-

course,

possible, for

to achieve

a

,

the

in-

common

industry.

Both

government

tailed

rules

guard

that

de-

regulations

can

false

the

industry

must
idea

and

solve human problems in this in-

dustry

or

other. The

any

course

we

do agree on is that much can

be

done

the

to

the

raise

people and

the

rules that

in this

the

make

are

management

of

in the

success

industry and that
will

quality

firms

detailed

stifling to good

so

unnecessary."

"FORWARD"

Report

the

of

Special

gtudy 0f Securities Markets of the

Securities

and

Exchange

Com_

mission raiSes important questions
concernjng5

among

practiCes"

of

dugtry, The

others, "selling

the

purpose

securities

in-

of the Special

g^udy Report has been described
as

where

areas

«The

an

attempt to raise the entire

securities

industry

to

the

best

tions in the
page

with the

GLENS FALLS

is

the

disapprove with recommenda- standards which the industry itSpecial Report, listed geR Proclaims. The Commission

lye

>

the

clear

a

good.

"Conversely,

American Stock Exchange

is

to work together,

us

Members




throughout

widely

dustry.

the

against

on

business^ to spread good standards
more

achieve

per-

and

change

for

agree,

government

good of higher standards through-

in; the Special Report

which

page

of

will

that

course

to

effort

proceed to

we

ideas

on

u

point

last

and

the

and reform

right.

a

emphasis is that if

1868

is

a

both

out

of

dull,
non-

This

a

and

a

a

can

will

randum

r

1 would

program.

pressures

involved

NEWARK

been

of both wisdom and

course

focus

NASHVILLE

time

same

in-

other

organizations

haste.

CHICAGO

not

in the public interest to react to

consultation and that

BOSTON

have

like to defend the length and the

too fast—to short cut this healthy

ALBANY

remedies

the

the

Qf

self-regulatory

Exchange

detailed
criticized

each point and a month iater any

bear

New York Stock

been

by the Commission itself and be-

A month from

^now

democracy. I

25 BROAD

has

cause

memorandum

that

Established

It

the

to

month to prepare>

is the

i

was

tragic mistake

"This

worked out into

•

period

extreme in nature, involving ab-

/'But at the

would

that

of

of

widely

industry.

dustry

DEALERS

Part

details

two-year

a

en-

high standards existing within
«j

period.

all

over

It

heartily

so

spreading

of

industry

Report.

able group

an

analyzing

men

the

by

up

help for being too long, for containing

(3)

to achieve that goal which

in

memorandum here today and are

every

a

from

of

Special

points of emphasis before asking detailed nature of the report as
policies and rules which are pat Rockefeller and Albee Pratt being necessary to the thorough
to govern its operations.
to give you a summary of our investigation that was
made, I be"So
we
are
considering this conclusions.
lieve it would be a

throughout

appointed

suggestions

drawn

was

real. Look at the

so

of the

nature

the

throughout the

alyze various recommendations in

public.

terest that the economic operating

of the securities firms

hoc committee to

and

this danger is

and pate in the advance planning for

policies

which

concern

so

on

the securia position to
work construc¬ unit of this business
actively particitively with government in the de¬ ties firm itself

the

our

focused

in

SEC, but Selling Practices

do

country have

criticisms

part securities firms—before the ideas

the

the

public interest and
priate that

in

melding of

a

all pres¬

and the SEC

heavily

the

each

become

be

with business.

breaking

really

in

us

rules

of Conclusions."

"We

experience

problems involved. The sebest curities industry performs a vital
function in this country and it is
re¬ judgment of business and govern¬
ment. We believe there is wisdom a matter of important public in-

word in the Memorandum which is

mary

that the final product of of

so

and

of the business and each

rules, regulations and procedures the

Ames in con¬
panel presentation of

marks made by Mr.
nection with

area

would

Panel

at

Ames

Mr.

or

He training

solutions.

urged each side to maintain flexi¬

(Sullivan & Cromwell).
By

of problems and to

\

William

Counsel:

area

Wm. Ward Foshay

Avery Rockefeller, Jr.

this

purpose of this
of first impor¬
the industry to memorandum to attempt to speak

as

asked

Donald Regan

policy.
of

2,

relate to interference

prerogatives of manage-

asked the

ment and again and again are un-

form

accomplishment

ruies

necessary
of

the

...

the

desired end
,

,.

patient

medicine
"Let

the

to

or

me

would kill

or
n

,

/

of too much
the wrong medicine,

by

industry to develop

preliminary suggestions
and
or

the

extent

why

I

think

a

new

guides which will achieve

...

,

,,

this end and thus

we

are

in

a

po-

^

use

explain

to the

as

of

sition to work constructively with
government

in

the

development

Volume

of

the

policies

which

we

Number 6328

198

rules

and

under

to do business.

are

appointed

to

study

.

The Commercial and Financial Chronicle

.

effectively
the

"A small ad hoc committee has
been

.

raised

improving

by

quality and the perf ormance of

the

enforcement

and

devices

which

novel, theoretical and foreign

are

to

in it.

pedple who work

17

system.

our

Recommendations such

as

these

to

(2) We agree that standards for

analyze various recommendations

entry and continuance in the bus¬

encroach

in the Special

iness should be developed and

rights of management and should

and

Study Report that

make

proposal

a

considered

be

This

committee
whose

men

all

firms

industry.

do

up

business

parts of the country, and are

active in most of the

business

listed

—

the-counter

of the

areas

markets,

markets,

"It

not

is

the

over-

of this

memorandum to attempt to

set

or

policy

Bankers

policy

after

men

and

only be developed

can

qualified

experience in each

business

and

country

have

training

by

each

of the

area

part

supervision of sales personnel

should

be

that the

emphasized

(4)

matter

of

vital

a

country

vised for certain selling

important

tisements

is

a

in¬

public

ties

firm

business—the

itself—actively partici¬

to

policies

its operations.

govern

will

attention

the

of

(i)

"mark-ups"

the

focus

industry

guides

the

on

be

"selling practices" to

on

and the

by the SEC

adopted

(ii)

self-regulatory agencies;

criticisms

velop
ideas

business

either

of

ernment

the

firms—before

securities

from

de¬

suggestions

and

too

become

or

gov¬

rigid;

and

(iii) r help us to achieve that goal
which

industry

the

in

we

that

more

in

of retail

Investment
America."

Bankers Association of

SUMMARY

CONCLUSIONS

OF

following is the text of the
the

in

tained
dum:

Conclusions"

of

"Summary

38-page

con¬
'

In this memorandum we

recommendations

those

Special

-

analyze

the

in

Report which

Study

understand

•

we

Commission

to

the

regard as of high priority in the
of selling

area

We have

practices.

subjects such

should

carried

be

these

as

out

The

tions

not

were

the

Although not within the im¬
area
of selling practices,

mediate

that proper

believe

we

of financial

standards

capacity and

respon¬

lation

regulation and self-regu¬

which

the

thereby
and

industry

with

their

before

consult

in

advance

rules

or

guidelines relating to practice or

of

conduct in the

NASD,

should
Fourth:

It

industry.

Participate

construc¬

admin¬ regulatory agencies. At all stages
effective industry standards.
of
the administrative

processes,

will

also

tion

about

the

enlarge

significantly

issuers

of

corporate

however

industry

representatives should offer their
practical

securities.

preliminary,

advice

and

assistance,

any

or

not

illustrate:

We

regulation

oppose

re¬

restrict
office managers' legitimate

branch

sales

activities,
how

and

dictate

or

"with

interfere

determine

management's right to
paid,

or
en¬

management,

sponsible

employees

data

are

processing

techniques.
(2) While we agree that securi¬
ties

should

salesmen

qualified

to

tion,

deny

we

should

be

be

highly

their func¬

perform

that they

responsible

are

or

the

for

"suitability" of the purchases their
customers make.

Adoption of

sential

spe¬

regulations

restrict the industry as to

performance

function

in

its

of

es¬

American

the

economy.

(3) We deny that abuses
eliminated

can

pyramiding

by

be

regu¬

lation and self-regulation, such as,

requirements

specifically,

for

adequate .marking all orders "solicited" or
supervision of competent person¬ "unsolicited," for having all cus¬
nel, will be by far the most effec¬
methods

tive

of

im¬

eliminating

selling activities.

proper

effort,

preliminary

to

propose

it

leads

which

by

means

us

our

industry can work with the reg¬
ulatory

self-regulatory

and

thorities

to

achieve

a

cards

for inserting market data

or

Also,

practices

by

detailed

upon

the

niques

such

ments,

names

The

Special

general

Study Report was

the result of

a

thorough study of

the

-

over

industry

a

appreciation

of

problems,

them.

tion

concur

should
as

an

regulatory
ards

.we

and

approve

of

an

that the individ¬

receive

more

appropriate
purposes.

industry




atten¬

unit

The
can

initials

docu¬

on

in files, long bibli¬

specific

rather

than

and

clauses,

tidy
filling of underlying information.

(4)

We

consider

artificial

unsound

issues,

"deflation" in the

for

and

duction

for

stand¬

only be

so-called
we oppose

of

procedures

For example:

(1) We
ual

business

our

and

as

hedge

tions evidence understanding and, markets

its

premised

any

two-year procedures designed to introduce

Many of its recommenda¬

period.

be eliminated

of mechanical tech¬

au¬

Support

can

regulations

use

ographies,
We

investment

do not believe that im¬

we

proper

common

good.
Recommendations

show

in over-the-counter confirmations.

While this memorandum is only
a

tomers'

goals,

untried,
designed

the

as

intro¬

to

revolu¬
mar¬

making "wholesalers"

into

"primary market makjers" for

the

retail

(5)

We

Public Revenue Authorities

first

theoretical

tionize the over-the-counter
kets such

after-

"hot"

Private and Interim

markets.

condemn

investigation

its

should

made
com¬

be

by

the stock

con¬

state

the

commissioners

especially

additional

if

SEC,

the

exchanges

there

is

and

essen¬

is to

regulation,

be
and

keynote.

suming and unreasonable.

given due weight in the formula¬

(1)

been

investigation is costly, time

tion of the solutions recommended.
To

duplication.

Multiplicity in administration

in¬

were

has

uniformity must be the

Disapprove

aspects

duplication

enabling
the
self. - regulatory tively with the SEC and the self- tial,

the volume of available informa¬

eliminate

which

other tinued and extended. Elimination

agencies to establish and
ister

and

start

membership generally investigations

adopting

with

together

sibility,

con¬

petence and of the work of special

and

an

understood

clearly

practical

so

try.

To this

in the unification of tests for

Special Study either the problems

preclude

qualifications to enter the indus¬

provide the basis for the ad¬

ditional

should

exchanges

The

analyzed, the clearer it

are

could

and

will

legislation

proposed

The

spon¬

also

stock

duce

becomes that in the course of the

the Special

requirements

SEC

before Con¬

the

and

The

recommenda¬

other

more

"suitability"

capital

the

NASD

agencies.

respect
can

on

Recommendations We

cific

mum

Support

sored legislation now

self-regulatory

dustry-wide basis.

also included recommendations of

Study regarding mini¬

Proposal for Industry Policy

gress.

Third: Urge similar precepts for
the

improved.

Recommendations with

memoran¬

.

re¬

thereto.

activities.

what
The

necessary.

end, individual firms should

steps to stamp out "boiler shop"

so

ing within our industry.—Amy as

Ames, President,

position where

quotations in

be

can

of

endorse,

prac¬

over-the-,

the

spreading self-regulation which would
widely the high standards exist¬ croach
upon prerogatives of

heartily

regard for

We support all appropriate

(5)

problems involved in future rules
or

and

markets, and that the dis¬

markets

those

to

"Therefore, it is hoped that this
memorandum

attention to

tical effects and consequences and

the NASD with respect

semination

rules which are

and

litera¬

sales

think

also

We

counter

securi¬

pate in the advance planning for
the

other

and

adver¬

specific standards should be con¬

terest that the economic operaing
unit of this

letters,

market

including

de¬

practices,

ture.

func¬

it

and

A

realized without

be best

ef¬ regulatory

more

fective self-regulation can be

to

performs

that

believe

We

industry

this

sort

endorse,

possible.

ever

sidered by

in

and

anew,

supervisory methods em¬

the

on

can

First:

(3) We also agree that training

problems involved. The securities
tion

responsibil¬

the

of

focused

as

ity of firms.

America

of

industry in general, but

wise

financial capacity and

well

as

speak ployed should be improved where-

for the Investment

Association

for the

or

this

of

purpose

and

through examinations

appropriate experience)

and

function

the

or

recommendations. The SEC should principles are sound, concessions
proceed without haste, with due where appropriate, and firm op¬

ministered by

underwrit¬

ing and mutual funds.

committee

constructive
com¬
in and provide
its ment and suggestions where the

tested

policy to

made

of

in

of

is

the

on

implementation

with readiness from the outset to tribute
the
time
of
their
best
the self-regulatory not be pursued. Their implemen¬
consult fully and freely with re¬ people.
authorities, and that they should tation can only result in more
Fifth: Encourage the SEC and
sponsible representatives of the
encompass
competence
of
per¬ harm than good. The objectives
the self-regulatory agencies to re¬
sonnel (in the sense of knowledge of both government and industry industry.

and

the

by

unnecessarily

Urge statesmanship

SEC's

of

deal with "selling practices"
to

ad¬

Second:
the

or

con¬

18

The Commercial and Financial Chronicle

cash

a

Report of Subcommittee

of

■

bank

the

To Study State and

Municipal

deposit,

deposit
who,

time certificate

a

be

turn,

in

may

Alan

K.

Refunding

The

the Bank of
America National Trust & Savings Association, San
Francisco, was Chairman of the Subcommittee to
Study State and Municipal Bond Advance Refund¬
ing. The Committee reported as follows:

currently
which

or

complished

dring the Central States meeting
of the

Investment Bankers

ciation

America

of

at

Asso¬

Chicago,

take
of

position

any

advance

and their

lished

Illinois,

this

time.

that

the

1963.

Chair¬

date

Municipal Se¬
curities

It

is

hoped, however,

guide to sound

a

vance

States

preliminary findings

subcommittee

the

the*

of

man

by

will

of

refunding technique:

prior

B.

Wendt,

appointment
the sub¬

of

a

ing of

informing the

prior

!

field

the

In

of

Municipal

Finance.

accepting membership

the

on

subcommittee, members expressed
themselves

being hopeful that

as

they could develop factual infor¬
mation
and

callable

prior to

customers,

would

recognized

was

on

be

the

at the

ardent sup¬

were

method
under

of

Municipal

is

for purposes of investment to

a

ciary, sufficient in amount to pay

charges)

interest when due and to

and

in

these

The

funds

invested

be

the

interest

in

redeem

refunded

deposited

Treasury
which is

on

interest

pay

ipal Division Council

or

the Board

of

the

being
on

the

or

sale,

the

bonds

then used to pay the principal
and

any

fiduciary
funds

call premium

may

said

on

step beyond

reduc¬

therefore

proper gov¬

authority.

This

seems

subjective question of

philosophy which we, in
discussions, have not attempt¬
to judge. Rather, we have been

discussing

the

matter

ments pro and

point

of

bonds,

investing the deposit
Also,

rather than

refunding,

"foot

in

the

from

the

and from

con

the

of

possible

legal

may

be

nicipal

ing which both issues

industrial

(b)

Guessing

financing.

aid

Mar¬

Future

on

one

bonds

not

are

to

made

maturity

the

bonds

redeemable

redeemable

at

about
refund

they

the
are

gambling

some

this it is

(a)

Tax exemption

there appears to be

—

While

doubt that

no

well

may

prediction
it

has

in

to be wrong (as

proves

cases), the public

some

will of

agency

than

it

higher

be

is needed. If the

higher

course pay a

would

have

of

paid if

years.

gal problem will also
in any case

originally
stance

entitled (no such in¬
yet been brought to

has

attention).

our

bonds

be necessary,

people to

many

general rule

a

as

future

a

market

that

say

public agency

a

should sell bonds when the money

is

needed

and

when

course,

not

ing is properly set
rate

bonds

deemable

against

a

tirhe

the

refund

mature,

or

sav¬

made

are

about

or

they

a

if the ad¬

and

refunding bonds

redeemable at
the

under fa¬

up

differentials,

ing is guaranteed
vance

Of

before.

advance refund¬

an

are

re¬

gambling

no

future market is present

a

from

in order to issue the

covenant against creation of

the

the

holders

material)

because

a

re¬

funded

and

still

be

accomplished at the time

original

refunding bonds
become

bonds

can

call¬

able, and such further savings
than

available

taken

as

advan¬

if

itself

—

widely
as

far

Advance

used,

may

future

as

To the extent

use

used,

tax-exempts

is doubled during the period both

original and refunding bond issues

outstanding

(which

call

original

of

the

is

until

bonds).

of advance

use

rates

up

making further ad¬

refunding,

or

normal

even

refunding, impractical.
(d)

Ad Infinitum

If advance

refunding becomes standard prac¬
tice the next
•,

step

refunding

vance

may

of

be the ad¬

advance

re¬

any
may

reputable bond at¬

no

torney would approve the advance

refunding
if this be

is

bonds.)

Nevertheless,

tried, the legal question

whether

not the fund

or

con¬

sisting of the proceeds of the
invested

securities

to call the original

to pay

as

in

S.

held

and

bonds,

re¬

U.

as

well

interest thereon in the

interim, is
for

sufficient substitute

a

the original rights

avoid any

and would

claim of impairment of

the contract rights attached to the

original bonds.

have

are

advised

the

that

courts

usually held that if the issu¬

ing agency holds in trust sufficient
to pay bonds at maturity

moneys

(or to redeem the

same

at

a

future

call

date), plus interest to matu¬

rity

or

to the call date, and such

moneys

irrevocably dedicated

are

to such purposes

then the taking

of original rights is not

away

impairment of contract.
tion

may

not

this

arise
rule

is

not

to

as

in

more

serious

could arise

terest

on

not

an

ques¬

whether

applies

held

A

where
cash

U. S. Government bonds.

ered,

funding bonds.

under

(In

be assumed

fund

—

on rev¬

instances-, however, it

of these

We

Market Dilution

original

original bond issue.

Government

not

the

of

it

away

other rights held

or

funding bonds

involved, which is

take

property, rights to

on

(except only to the extent of the
expense

to

assessments, liens

or

enues

In other cases,

necessary

bonds liens

taxes

original

bonds, it could

refunding bonds, to vio¬

be

may

the

If

revenue

are

led

Boston, Mass.

Francisco, Cal.

necessary

desired to take away from the

has

vance

Philadelphia, Pa.

be present

where it is

additional debt.

est

Angeles, Cal.

issues

period

a

(b) Bondholders' Rights—A le¬

late

on

refunding could itself drive inter¬

Chicago, III.

excep¬

both

outstanding for

gamble

is concerned.

OFFICES;

court

a

implied

where

case

a

some

such

not

Hence, widespread

CERTIFICATES OF DEPOSIT

to

tion

would be

where

cases

feeling that public agencies should

the

San

few

applied

limit.

to be rela¬

appear

advance

are

Los

tively

the

exceed

the sale had been made later. The

the market supply of

NEGOTIABLE

would

However, there

of the rights to which they were

refunding,

AND UNLISTED STOCKS AND BONDS

alone)

holders of the original bonds some

rates

defeat

HIGH GRADE CORPORATE LISTED

techni¬

are

terest

(c)

MUNICIPAL BONDS

there

presently "favorable" and that in¬

tage of.

UNITED STATES GOVERNMENT and AGENCY SECURITIES

though

even

brief period of time dur¬

a

or

are

A complete service for Banks and Institutional Investors

hold

courts

because it feels that the market is

the

To Advance Refunding

these

cally outstanding and the total of
the two (but not either one taken

as¬

the future

on

present. In

are

the

has

mature,

or

subsequent refunding of both

Arguments Offered in Opposition

ex¬

an

which has been made against mu¬

usually
II

-

courts have implied

percentage limitation is

general in¬

more

extra

view

problems.

:•

most

violated

vorable

our

ed

normal

of

case

not

po¬

litical

the

the deposit

Treasury

bonds.

a

a

it

cases

On occasion the

secure

with

rather than
in

to

be

interest

bonds); either point of view of objective argu¬

Treasury

redeemed bonds.

of

bonds,

(or the interest

of

may

used

the bonds

on

redemption

Fi¬

pal Securities Committee, Munic¬

gain

profit (rather than for the usual
future

are

appropriate for the Munici¬

money

of just effecting

re¬

The subcommittee does not believe

oftentimes

in

proceeds

conditions.

certain

it

tion

fidu¬

a

However,

a

turn

that

rate

purpose

deposited with

are

advance refunding

equally opposed to this

that

borrowing of

exception for

in

re¬

which

through

those who

as

advance

a

technique

well

of

ing bond issue, the proceeds from

porters of the advance refunding
as

a

lower in¬

a

legitimate public

a

feel

constitutes

to be

outset that there

it

refund¬

is

percentage debt limits do not

contain any express

situation.

which

when the money

critics

price.

reasonably well informed

nance

cost

Most

the refunding

problems, ly in advance of the time when it
plans to use the proceeds thereof

case

advance

in the

legal nature, in¬

(General Obliga¬

the

advance

to

refunding has been similar to the case where a public
agency sells its bonds substantial¬
are many

bonds than in the

plus

a

the

gument here is similar to the

time

refunding

issue

if

vasions of the exemption. The ar¬

in
re¬

original

agency,

arise

may

refunding bonds exceed the limit.

bonds. There

indebtedness to obtain
terest

ex¬

public

the

problem

legal

Thus,

leading to

prior

While refunding an outstanding

fundings

entails

or

is

bonds..

ernmental

subject. It

vised

tion)

optional
a

more,

or

maturity

tax secured

purpose,

This

the issuance and sale of

revenue

prior redemption date at their call

members, and in

years

the

of advance refunding so

their

were

of

an

to

plicable

ception.

in

years,

advance

in

may

the

5

a

to

prior

such

redemption.

the

in

or

another

be

use

conceivably

create

might

pects of

revenue

to

bonds

market

of

could

refunding
door"

existing

widespread

a

respect

with

demption date of the bonds being

the bonds at maturity or at their

exploring

that Association
turn

date, of

to

the

of

pros

while

cons

bonds

of

maturity,

growing phenomena in

a

maturity,

Alan K. Browne

Associa¬
on

its

redemption

device

ception

the

under

Congress

refunded.

pur¬

outstanding bond issue

an

to

case

membership of
tion

refunding, but for the

longer

lead

advance refunding

on

statutes,

this

of

Thursday, December 26, 1963

.

exempt from federal in¬

taxes

come

.

historically; instead kets—Where advance refunding

10

cases

advance

accomp¬

months.^ the oeriod

extended

some

ally considered to be the refund¬

step towards

the

being

of

of clarification it is gener¬

pose

committee was

case

few

a

bonds is

issues than has

volved

There is nothing new about ad¬
vance

the

particularly of

1

Definitions

stated that the

to

fewer and less complex

'

.

lower

much

a

of specified

Most advance

Com¬

mittee, George

of

for

as

serve

of the ad¬

use

current

point in particular is

today

period

political subdivisions at

March

13-14,

refunding

ac¬

saving

a

on

refunding is being

vance

the subject

on

con¬

been

the interest

federal

noteworthy and that is that ad¬

appointed of Governors of the Association to

was

have

due to

One

being

based

are

interest

of

been the
subcommittee

The

invest

preponderance of advance

refundings

rates.

Browne, Vice-President of

a

deposit in Treasury bonds.

sidered

Bond Advance

by

issued

may

.

or

the

but

An

in

even

question of this type

if

the

intervening in¬

the original issue is

by

assets

cov¬

presently

in

hand, but only by future interest
to be

FOREIGN SECURITIES

Potential Legal Problems

DIRECT WIRES

TO;
While

Atlanta

New Haven

Boston

HANSEATIC

Pittsburgh

Cleveland

YORK

Philadelphia

Chicago

NEW

Columbus

BROAD

STREET




•

1920

NEW YORK 4, N. Y.

Telephone:

363-2000

Teletype: 212-571

-

1234

San Antonio
San Francisco

Houston

Established
60

are

advance

refunding

in this day and age ap¬

Providence

Dallas

CORPORATION

bonds

all

Washington, D.C.

Los

Toronto, Canada

Angeles

proved
nized

as

to legality by

firm

of

thereby resolving
doubt

as

to their

bond

a

recog¬

attorneys,
reasonable

any

legality and

en¬

forceability, critics of the practice
are

concerned as to

cations that could
verse

legal compli¬

occur

circumstances,

under ad¬

particularly

with respect to tax bonds.

(a) Debt Limitations
is

a

—

earned

(Here again
—unless

percentage debt limitation

ap¬

find

complete

investments.
no

precedent

defeasance

of

the issuer's contract with the hold¬
ers

of the issuer's

original bonds

is obtained—by deposit in full of

principal, interest to call date
maturity,

plus

call

premium,

or

if

the pledge of security to

any

—

the

outstanding bonds cannot be

effected by the advance
and

the advance

must be secured

If there

the

on

we

Government
with

no

by the deposit of

Bonds

claim

refunding

refunding bonds

on

[or
such

C.D.'s]
security

Volume

until

Number 6328

198

outstanding

the

bonds

are

actually retired.)

.

.

original issue
enues

the

C';.;;/

Iv

Arguments for Advance Refunding

Interest Saving—The argu¬

(a)

ments pro
refunding
time

obvious. An advance

are

set

properly

when

at

up

differentials

rate

a

are

favorable will guarantee a saving
interest

of

cost

of

Revision

bonds
ence

contract

or

standing
by

account

of

the

issuer for

the

funding which may give the issuer
privilege of exercising the op¬
tional
privilege many years in

detailed.

referring

of the

refunding

to

the

Refer¬

the

legal
treat¬

original debt and the

bonds,

including

the

bonds

as

bonds.
a

compared with optional

Where

the

investor takes

on

Escrow

in

that

on

and after the

carefully explain that the
ment securities held in
as

sinking

fund

govern¬

proceeds of

a new

ADVANCE

New
Frank

C.

Chicago, 111.

keeping

Chicago, 111.
Jack C. Payne

REFUNDING

K. Browne,

Bank

of
&

under conditions of easier money

Trust

for

rates.

San

Chairman

America

Dallas, Texas

National

,

William J. Wallace

Savings Association

Mellon National Bank

Francisco, Calif.

Pittsburgh, Pa.

permit¬

with changing condi¬

tions.

Investment Banking

Problems

(a) Collateral Against Refunded
Bonds—Where the proceeds
advance

refunding

pledged to

bonds,

are

the outstanding

secure

fiduciary

proper

of the

bonds

arrange¬

ments must be made to insure that
all

interest payments and

princi¬

pal when due, including premium
if any, on

said refunded bonds are

promptly paid and that the cus¬
tody of funds, securities and C.D.'s

deposited with

are

institution

ing
all

bank¬

attorney's

to be most mindful of

appear

the

a proper

(bond

necessity for this).

(b) Market Dilution-—The legal

rights and status of the outstand¬
ing bonds should not be adversely
The addition of the

affected.
vance

ket

ad¬

refunding bonds in the mar¬

will not impair the

value of

the original bonds

held by inves¬
tors (no problem of this type has
occurred to date—the rating serv¬
ices have almost always

which

bonds

upgraded

advance

are

re¬

funded).

Underwriter

Secondary Market—Under¬

(c)

writers

of

a

d

refunding

v a n c e

ability,

markets

active

maintain

for bonds

Distributor

of their

bonds should to the best

Dealer

being refunded in order

Financial Advisor

market

to insure holders of a fair

Bonds offered iii the sec¬

value.

ondary market should be identi¬
fied as to their refunding status.

(d)
ity

as

Call Notices—Wide public¬
to bonds being advance re¬

■

State, Municipal, Revenue and Housing Authority Bonds

■

Industrial, Public Utility and Railroad Bonds

■

Preferred and Common Stocks

■

Bank Stocks

■

Investment

funded is desirable at the time of

refunding

the delivery of advance

bonds,

well

as

call notice at

the customary
the proper legal time
as

in advance of the actual redemp¬
tion

date,

so

that holders of the

refunded bonds

the refunding and take
of any

■

Mutual Funds

know about

may

advantage

Life Insurance Stocks

■

premium resulting from the

improvement in security and rat¬
ing of their bonds. If

a

negotiated

sale* of

advance

occurs,

the issuer should

the

refunding bonds

advise

International

■

original purchaser of the out¬

standing issue,
form

his

that he

so

clients

the

of

can

Department

in¬

changed

status of their bonds.

Circulars—Financial

(e)

state¬

ments should clearly indicate the

debt of

entire

an

obligor issuing

refunding bonds

advance

investors

are

aware

so

that

IVll-rm.rMjllj' Juli/mOVrjLr

of the double

*

<?f \iV#

FOUNDED 1865

debt, less funds and securities held
Members New

in trust to redeem the advance re¬

•

funded

bonds.

Debt

statements

should clearly indicate the bonds

being
of the

called, and the
redemption

call price,
and

particulars

(call date and

where being paid, etc.)

indicated serial maturities

the called issue being
to the date

of

retired prior

of redemption.




If the

NEW YORK

BOSTON

York, American, Boston, Philadelphia-Baltimore-Washington,
Midwest and

Pacific Coast Stock Exchanges

PHILADELPHIA

I

First Boston Corporation

STUDY

ting the obligor to streamline debt
in

V

Kirtley

obtained

be

can

refundings,

¬

Carr

John Nuveen & Co.

any

Arthur E.

TO

Corporation

York, N. Y.

Dallas Union Securities Co.
Alan

are

re¬

to

Callaway, Jr.

STATE AND MUNICIPAL

assets

practice of advance

investors

H.

First of Michigan

Respectfully submitted,

escrow

The

of

SUBCOMMITTEE

optional date

refunding issue

part

optional bonds.

advance of maturity, he is aware

the bonds may be refunded either
Agreement—should from surplus monies or from the

Re¬

the

long-term commitment in bonds

subject to optional retirement

David

the

rights of the out¬

bonds

advance,

be

should be made to any

opinions
ment

refund¬ held
ing where defeasance of the inden¬
ture

should

can

—

advance

by

the

payment of the refundable bonds.

(g) Customers—There is an un¬
substituted
security
(the
trust derstandable preference on the advance of the actual date, would
fund)
pledged to the refunded part of investors for noncallable very well cause a rigid resistance

never

were

tight indentures

obviated

be

being pledged to

advance refunding bonds,

(f)

strictions

secured by rev¬

was
are

19

treatment? of interest.

be the cost if the issue

Indenture

which

what would

over

refunded.

(b)

The Commercial and Financial Chronicle

.

CHICAGO

LOS

ANGELES

SAN

FRANCISCO

The Commercial and Financial Chronicle

20

likelihood

m

Report of IBA Municipal

Municipal

of

Securities Committee

November,

the

1951,

Board

resolution

recommending

George B. Wendt, Vice-President of the First Na-;
tional Bank of Chicago, as Chairman of the Munici¬

"(1)

-

of

volume

The

issues

new,

of

municipal bonds sold during the
first 11
months of 1963 aggre¬
gated

in

billion

$9.6

over

over

This

viously sold in
full year
indicating
full

the

will

public

year

to

te

George B. Wendt

high levels,

continued at relatively

Mu¬

In

out

Russell

issuers, with the Bond Buyer 20ranging from

3.01%

with prices at the latter

expect

Conference
thur

again

was

are

include

to

Subcommittee),

Kirtley

Ar¬

the

of

scope

resolu?

manufacturing,

Donald Patter¬

and

manufacturing,

incidental to

Special Committee

en¬

Business
An

IBA

on

Municipal

operation

Practices

to

open

In

Special Committee on

the

cluded

use

of

to,

this

has

many

did

not

for

case

Several large issues

firms.

not

the

sell

at

the

original

of¬

fering prices and the underwriters

syndicate operations.
will

be
'

considered
-N

mittee

at

*

its

f

.-/

Subdivisions.

Political

tion

meeting at the An¬

in

adopted

firmed

nual: Convention.

the

in, 1959)

language

ing

regarding

imply

nancing,
is poor

approval

concluding

and

policy to

This

Govern,

the

of

Board

best

would

State, Municipal and
-

;•

/••

"

/

ship of Marsom Pratt.

■■■rv ;

■

.

Tax

rental

for

the

payments

industrial

on,

in the House

duced
H.R.

6772, but

taken

and

this

IBA

in

Stone, Jr. However, we want

briefly to note and commend
of

the

outstanding

Committee
the

in

sales

the

some

of

work

promotional

booklet

"Why Professional People Invest
Municipal Bonds," the adver¬

tising

kit,

"Nothing

Ventured,

Nothing Gained" and the supple¬

kit,

"Ten

Sales¬

New

Act of men," the newspaper series on
which has municipal ?bonds entitled "Your

Committee, would

Senate Finance

ography
of
material regarding
present municipal bonds which will be
tax immunity of the interest on
announced
in the report of the
state and municipal bonds. How¬
Committee at the Convention.
make

ever,

the

in

change

no

during the current hearings

by the Senate Finance Committee
Senator

VI

has

(of Louisiana)

Long

Federal Legislation

line the method of
come

taxes

payer

to elect

whereby
other

exempt

interest

cluding

municipal

a

rate

$50,000.
a

to

and

his first

50%

(in¬

Federal

state

and

notice

waive; all
40% rate

would

and

pay

a

to

50%

rate

to

include

payable from

which

national

banks

a

"an

obligation

special fund when

the full faith and credit of a state

all

on

authorize

or

any

political subdivision thereof.

thousands

to

United

the

of,
fi¬

mtfl

intro¬
4

of

as

published
members

corporations

States

pamphlet

a

and Your

Com¬

Support Private Ownership

pany

Government

American
The

Ownership

Industrial

most

of

Our Facilities

Plants?"

are

Available to

comprehensive study

of

municipal industrial financing

to

date,

Bond

this

"Industrial Development

Financing,"
by

year

mission

Advisory Com¬

the

INSTITUTIONS

BANKS

•

•

CORPORATIONS

published

' was

PENSION FUNDS

•

INDIVIDUALS

•

DEALERS

Intergovernmental Re¬

on

lations. Of particular interest was
the basic conclusion of the report
as

BOND DEPARTMENT
20 Pine Street,

trial

New York 10015

GOVERNMENT BONDS

follows:
"We

conclude

impair

(212)770-2541

TWX: NY 212-571-1414

Tel: (212)770-2661

out of

indus¬

tends

to

competitive

relationships

ventional

Tel:

the

bond

equities,

tax

business

MUNICIPAL BONDS

that

development

financing

and

con¬

Harriman

institutions

proportion to its contribu¬

employment. It is therefore

>212-571-1415

which

vice

the

a

Commission

de¬

63 Wall
BOSTON

•




in the New York Area/

ever,
the
i

ture

the

or

V

PHILADELPHIA

•

SAN FRANCISCO

does
•

DETROIT

•

PITTSBURGH

•

READING

recommend. How¬

Commission

recognizes

widespread and growing
of this

Street, New York 5, N. Y.

CHICAGO

CLEVELAND

not endorse

117 Convenient Offices

Ripley & Co.

Incorporated

tion to economic development and

TWX: NY 212-571-1416

practice and the

naun¬

London

a

rule

proposed

obligations" which were de¬

fined

joint return would be entitled
the 40% rate on $100,000 of
the

a

the
21

,

underwrite and deal in certain

eral

all incomes above

A married couple filing

and

of

in

June

of

public securities, including "gen¬

$50,000 of income and
on

published

Register

Mu¬

Currency

the

of

Saxon

of

Bonds.

Revenue

Comptroller
James

income

from

bonds)

deductions

nicipal

taxes on

pay

Underwriting

Bank

tax¬

a

alternate system

an

he would

wise

(a)

computing in¬

by permitting

mort¬

June

its

the

preparation of

Rev¬

plants

year

a

separate report by its Chairman,

obligations.

on

to

entitled "Do You

COMPANY

Municipal

on

summarized

is.

action has been

no

distributed

and

CHEMICAL BANK NEW YORK TRUST

Education

the bill.

on

The

Chemical

Education

Revenue

8363),

R.

an

use

on

A bill for this purpose was

or

States

..

Immunity

proposed
(H.

income

of

Internal

nanced by tax-exempt

in

that

problem

adoption

payments

gages

Securities

the

to

the

to

interest

or

Public Housing

has

Governors*

the

Public

Securities

mentary
The

United

Code to deny deductions for

enue

/ / /'/'v.'/:'/:.

of

Public

in

/>

IV

on

facilities.

Committee

solution

be

amendment

>

it

recommended, with the approval
the

•/

that

public credit

use

this

year

fi¬

such

of

for private industrial

'

the

marketing such bonds does

or

not

as

observing

of caution in underwrit¬

exercise

Chairman¬

the

the

to

of Appeals.

The work of the Committee for

(as/reaf¬ proposed to simplify and stream¬

1951

clarified

and

sound in every respect,
that

U. S.

This

report again affirmed the resolu¬

by this Com-

Municipal Industrial

under

Tax

The decision is being

passed the House and is currently Community and You," new pro¬
the subject of; hearings
by the motional brochures and a bibli¬

public

May, 1961, the Board of Gov¬

and

This report

Court

Life

Income

1963

issues of

been

appealed

the

under

Company

policy¬

or

development

a

on

Financing

in¬

are

report of the Sub¬

the

required

the

or

year

a

new

company

by the pro-

(between

Act of 1959.

20

develop¬

and

un¬

of rec¬ Municipal Business Practices has ernors approved a report of a
mu¬
prepared an extensive report with Special Committee to Study In¬
nicipal bonds, but unfortunately many suggestions on municipal dustrial Aid Financing by States
profits during

in

committee

facility
by the public"" /

of,

received

interest

insurance

not in fact taxed

was

Fred

assem¬

appurtenance

an

life

state

about

problem

this

on

bling, fabricating or processing is
merely

the

share)

principal
from

details

^Further
ments

fab¬

assembling,

processing articles,

or

such

less

by

Insurance

cember.

tion the issuance of bonds by mu¬

ricating

tax-exempt

be

this

of

scheduled

a

due

the

an

committee is
in Washington in De¬

meeting

a

the

of

officers

to

intent

the

the

stating

resolution,

son.

level

high

a

is

on

Company Case held that

surance

to

mill

to' study this problem and

states

Chicago

II

firms

banking

Municipal
in

Ergood (Chairman of the

gaged in the municipal bond busi¬

ord volume

rolling

finance

clarified

and

reaffirmed

"It

that:

Conference

held

was

early in November.

Investment

of

and

committee

May, 1959, the Board of Gov¬

original

Northern District of Oklahoma

for

facilities

equipment
aluminum

state leg¬

acter."

legisla¬

the

for

holder's share and the company's

local

of

Court

rationing

islators, prospective issuing units leased by Harvey Aluminum Com¬

the

Conference

the

relatively

for

rates

should

for land

pay

United

the

year,

acquisition, construction of build¬

nicipalities to finance the con¬
great struction or
acquisition of land,
success, attended by over 385 reg¬
buildings, facilities, equipment, or
istrants. Special thanks for their
any
combination thereof, to be
work
in planning and carrying
leased
to
private
interests for

municipal

correspondingly

ness

IBA

and

IBA

Second

19-21 and

June

this

Index

the

practices, education and

Conference

have

Bond

to

used

were

this

District

ings and acquisition of machinery,

inform voters,

to

within

prices

to 3.31%

issue

marketing

Committee

Municipal

The

interest

un¬

cau¬

"(2) That each use his best ef¬

ernors

IBA

period

rate

for

information

$10

during

and

of

one

extreme

bonds; and

forts

I

Municipal

low

issues.

exercise

tion in underwriting or
such

tion.

billion.

bond

Ex¬

effective

an

new

Securities

probably

close

be

on

activity

business

for

aggrega

the

was

year

government, and other pany.
Finally, it is important to note
in interested parties of the past ex¬
many areas of importance which perience and inherent dangers of; that New York State Comptroller
are
financing
of this char¬ Arthur Levitt has organized a
summarized below, including public
usual

pre¬

sales

losses.

has been

year

nicipal

that

this

of

October

States

in, May 1, 1963, in the Atlas Life In¬

750),

largest municipal industrial bond
issue to
date.
Proceeds of this

whole develop¬

this

on

and

ment

unpleasant lesson in not bid¬

amount

any

should

ding too high

exceeding the

and

substantial

perience

issues,

5,990

informed

(population

Ky.

isport,

become

figure. No ac¬

by the Senate Finance Committee.
Earlier

.

suffered

but

to

absolutely

are

$50 million municipal indus¬
trial revenue bond issue by Lew-

take it upon
thoroughly

each

That

himself

pal Securities Committee, presented the following
Report to the Convention:
: \
>

safeguards

A

/

generally:

above that

income

we

essential."

to,

members of the IBA and to deal¬
ers

of

ber

Goverriprs of the IBA adopted

a

Thursday, December 26, 1963

cessation."

early

its

.

conclude that if tion has been taken on this pro¬
practice is to continue, a num¬ posal but it is under consideration

the

In

of

Therefore,

Financing

Industrial

.

.

Correspondent: PHILIP HILL, HIGGINSON, ERLANGERS

LIMITED

Volume

is

Number 6328

198

obligated for payments into the

fund

of

sufficient

quired

to

provide

with the

in

third

of

on

jecting

of

adoption

the

to

the

proposed rule and particularly to

definition

proposed

obligation"

"general

full

the

McChesney
of

man

Chair¬

Jr.,

Governors

of

Board

Federal

the

of

Mr. William

Martin,

the

by

credit and taxing

faith,

of the issuer.

power

revenue

secured

not

are

the

because

definition would include
which

the

of

Reserve

System

-

also wrote to Mr. Saxon express¬

tions.

objec¬

similar

substantially

ing

However,

Saxon

Mr.

Sept. 8.

Federal Register of

the

exceed

construction

for

years

nanced

President Kennedy recommend¬
ed

An aggregate of $145 mil¬

which

Act

development cost of

lion in grants over the next three

fiscal

Proposed Urban Mass Transit

(c)

one-

adoption of

ize

Federal

$500

a

requirement

grant

shall

the

of

the

that

Federal

development

of

cost

a

project.
(iii) An aggregate of $360 mil¬
lion

in

college

loans

for

construction

academic

facilities,

rently at 3%% if the funds
not

obtained

be

sources

at

that

can¬

other

from

-

rate,

with

of

cur¬

re¬

a

quirement that one-quarter of the
cost must

be obtained from non-

mass

urban

in

lease

or

agen¬

financing

for
or

facili¬

by

use,

otherwise,

transportation service in
in

and

areas

coordinating

with

Federal

such

service

other

such

a

shall

the

On

S.

April
6

an

which

aggregate

Federal

three

authorize

would

$375

of

grants

over

fiscal years

for

(a)

million
the
up

Committee

in

next

ilar

to

exemption

April

Administration.

vide

The

has

not

bill (H. R. 3881)

cleared

The

several bills relat-

on

ing to the lending power of banks,
including H. R. 5845 which would
authorize
banks
to
underwrite
deal

and

municipal

in

bonds which

revenue

eligible for bank

are

Committee

Currency

and

sim¬

to two- Rules Committee for consideration

reported
ducing
to

with

amendments

the authorized

$355 million.,

new

Oct.

7.

against the bill on

action has been taken

No

the bill by

on

In

past

Federal

thirds

sources.

of

the

net

project

cost

in

the

Continued

House.

on

Why has
B.J. VAN

.

INC.

for

program

proposed
particular type of

a

introduced

generally

aid

in

3000

S. 580

and

a

these

bills.

hearings

At

in

on

House

the

by

proposals

Committee

Education and La¬

on

than

of the proposals

summary

those

in

more

Appendix

the Senate. Attached as

A is

for

were

bill H. R.

single

a

House

the

of

types

education

to

into

lumped

separate bill;

a

various

for

programs
Federal

as

all of the President's

but this year

as

Education

Federal aid to education
was

been selected

each

years

in the past

The advent of the jet age

decade?

B. J. Van

with

IBA submitted

a

Ingen & Co. Inc. has been closely identified

great many airport projects, either as Financial

Consultant

or as a

major underwriter of revenue bonds.

the

Welfare

Public

and

has required modernization
throughout the nation.

and enlargement of airports

bor and the Senate Committee on

Labor

statement oppos¬

a

ing two parts of the proposed Act
which would authorize:

(i) $1.5 billion in Federal grants
four fiscal years for

over

salaries

of

50%

or

construction

teachers'
and

elementary

of

of

cost

the

secondary school facilities.

(ii)

billion

$1

in

interest

low

rate Federal loans over three fiscal

facilities for

academic

for

years

colleges and universities, requir¬
ing

that

the

of

of

construction

the

non-Federal

from

financed

be

one-quarter

least

at

cost

sources.

A

tee

of

summary

submitted

Education

on

attached

as

Commit¬
Labor

and

The

proposed
grants

and

billion

$1.5
for

aid

-The

of
ele¬

to

schools

secondary

has not been reported out
mittee in

is

Appendix B.

Federal

mentary

statement

the

the House

to

of

com¬

either House.

"Higher

proposed

Educa¬

tion Facilities Act of 1963"

(H. R.

6143) passed the House and Sen¬
ate

with different

the

Conference Report

Nov. 26 had been
but

House

not

provisions and
(which

•

on

adopted by the

by

the

Senate)

First, perhaps, is our intimate knowledge—gained through

more

,•

than 45 years of

As

7

would authorize:

one

(i)

An aggregate

of $690

fiscal

construction and

for

years

of

development

mil¬

next three

academic facilities

undergraduate

or

natural

the

or

physical

sci¬

foreign languages
engineering or for use as a

ences,

modern

library)

with

academic

technical

22%

allotted

facilities

community

contact with

bonds exclusively, we come into daily
type of bond buyer. .
from the large

•

every

requirements.

Active

bidding and daily management of accounts

colleges

for

public

and

public

institution^ With a




for

re¬

on

all

types of municipal and revenue bonds give us an up-to-theminute "feel of the market."

revenue

institution to the individual investor..
ment

.

•

Because of this

we are

familiar with the methods of set-up

.

.we

know their invest¬

which make

a

bond issue sound...

ipal issuer to sell its bonds

on. the

thereby enabling the munic¬
most favorable terms.

(structures de¬

signed for instruction or research
in

specialization/

of the leading investment banking firms dealing in

municipal and
lion in grants over the

re¬

funds

This bill has not

the Committee.

Federal Aid to

(b)

on

yet cleared the House Rules Corn-

investment. IBA President Amyas
Ames testified

sub¬

additional

of

House

,

ing and Currency began hearings

Sept. 23

loans

Senate

The House Committee on Bank¬

on

funds

July 31 ordered the bill favorably

House

the

the

and

Banking

reported

proposal recommend¬

yet

and

Redevelopment

million

$456

funds

Currency

by the President, but the bill

ed

a
a

sequently passed S. 1163 to pro¬

for

bonds.

9

grants

Area

the

(by

additional

provide

under

on
on

a

the

Federal

12

defeated

204)

waived

has

and

to

June

on

to

209

bill

its

on

House

of

for

a

for

revenue

any

such

on

Banking

passed favorably

Senate

the

4

and

eligible

issuer
tax

interest

House

with

bodies,
be

The
vote

states

by

expressly state
the

transportation in such areas.

highway

((issued

guarantee

that

Area

transit

to

Federal

the

aggre¬

of

public
that

bond
face

an

bonds

local

or

of

for

Funds

Redevelopment

(b)

million

$375

revenue

and

Additional

(d)

fi¬

reasonably

revenues

guarantee

of

gate

be

from

and proviso

states
and

equipment

operation
in

bodies

thereof
and

assist

to

public

cies

not exceed one-third ties

the next three

over

years

graduate academic facilities, with local

aggregating

grants

million

of fiscal

Act to author¬

an

cannot

an¬

adoption of the rule with
minor modifications in the

nounced
some

event

no

project.

(ii)
Ames

July 26 wrote to Mr. Saxon ob¬

bonds

a

obligation."

IB A President Amyas

the

quirement that the Federal grant
shall

connection

21

The Commercial and Financial Chronicle

.

re¬

all

for

in

payments

.

be

will

which

amounts

.

AN
ngen &co.inc.
MUNICIPAL BONO* EXCLUSIVELY SINCE 1*17

NEWYORK

•

MIAM

page

67

The Commercial and Financial Chronicle

Indeed,

Report of IBA Federal

under

stances,

: i

tax

it

John

Hugh W. Long & Co.,
Elizabeth, N. J., and Executive Vice-President and

'

the

be

landmark

a

ning of
nomic

it

as

begin¬

the

does,

in

Taxation,

history of Federal

marking,

year

people

is to effect substantial rate

year,

in

individuals

for

reduction

brackets

most

the

stimulate

likely directly

incentive,

initiative,

savings

dent's tax Message to

tinguished from the area of con¬

the

and

goals

"The

most

nation

our

end the
ment

step

the Congress

of his program:

urgent
home

at

unused

resources

to

—

increase

job and investment opportunities
—to

improve

our

and

thereby

to

nation's

productivity—
strengthen

is

equally important for both near-

our

ability to meet its world¬

and

term

economic

long-term

growth of the sort we most need.

to

the growth and vigor of

up

national economy—to

our

is

tragic waste oi unemploy¬

and

dis¬

as

sumption, Cqriiorate rate reduction

facing

task

today

investment,

and

With respect to

the specific rate

proposals made by the

reduction

repressive

presently

time,

wide commitments for the defense

in

ing daily as we do with investors

revision
tem

crucial
ored

to

make

John R. Haire

these

contribution

a

the

to

by

views

our

tax structure to

the

on

mission

to

major

in

Revenue Code to

rate

structural

Federal

mitted
and

a

the

and

re¬

proposals

analyzed

Committee

and

Committee
to

the

Committee

views

our

on

the

sub¬

to

House

the

of

numerous

In

our

statement

endorsed

Ways

we

the

advocated

of

formula which would

—

particularly in

larg¬
and

manpower

to

a

higher rate

growth

is

the

un-

realistically heavy drag of Federal
income

ing

taxes

private purchas¬

on

initiative,

power,

and incen¬

and

enthusi¬

the

bring

and

corporate

and

which

reduction

rate

a

over a

given

rates' below

need

war-born tax system

a

time when it is far
of the

spur

in

more

than the bit."

These statements and goals re¬
flect the substance

which

of the position

representatives

of '

many years.

that there
eral

We

now

recognition

are

our

to be

the

not

to

for

only to stimulate consumption

reward

person,

deal every day,

investment,

initiative, the creative

the risktaker and the doer.

realized

in¬

credit
tax

our

industry

our

law

has

to

these

proposals

and

tion

qualified to comment on their im¬

proposals

are

and

to

of

area

align

would

the

Presi¬

objective than the

overall

he

which

structure

rate

stimulated,

be

achieve

better

dent's
tax

directly

present tax

has

proposed. We have long felt, and

that

stated,

keep

income if we are

about

of his

50%

least

at

person

a

or

a

its

or

really concerned

equity, incentive, initiative,

savings

and

new

job

Message to

producing

and

static to

more
or

ease

The

*

find

eco¬

tax

.

tion

of

in

These

/While
the

commenting

mittee's

revision, your Com¬

statement

emphasis

change

to

of

many

recommendations

President's

for structural

on

those

which

gave

designed

attainment

,

proposals

directly

for

affected

the

substance

of

and

President,
with

specific
These

we

proposals

were

capital

on

amount

Underwriters, Distributors,

is

Dealers in

mit

of tax

long-term

taxpayers

period

to
•

an

permit

gains. We

are

PUBLIC REVENUE BONDS

that

of

both

most

original

your

Com¬

important role

an

proposal

gains

to

death

at

rejected.'

tax

,

unrealized

gift

or

also

was

"

,

_

Repeal of the Dividend Credit and
Exclusion

-

Committee

the

mendation
dividend
dend

strongly

President's

op¬

recom¬

to repeal both the

ahd

exclusion

4%

$50

divi¬

credit.

per¬

By

forward
indefinite

the

of

way

summary

we

took

position that—

offset

(1) We do have in this country

capital

double taxation of corporate divi¬

ultimate

gratified to report
these, proposals,
or

to

gratifying

persuading the Ways and Means

posed

gain which

realized

modified

have been approved

EQUIPMENT TRUST

was

Your

imposed

carry

for

future

HOUSING AUTHORITY

their

to

losses

against

request

the recommendations

taxed and the proposal to

capital

to
the

gains by lowering the

of

membership

Committee to reject this proposal.

recommended.

to reduce the rate

STATE, MUNICIPAL

in

objec¬

of

in

The

the

and, in the opinion of

able

two

were

their views

express

mittee, played

stated by

were

only

to

of

The

as

investors

longer one-year hold¬

a

posi¬
our

evaporate

while

Ways and Means Committee.

our

for many,

endorsing the

would

period

goals

the

of

of his program

agree

Many

opposition to this proposal to the

to

many years.

tives

would

gains.

Members and their clients

this

observations

Although

Revenue.

securities

reduced

response

Association have takeh

greatest

growing
/

Federal

of

sales

urged

in need

are

changes

which representatives of

tion

obtain

ing period.

the

of

Reform

reflect the

to

our

fewer realized

wait out

economic objectives."

Proposals for Tax Revision and

Reduced

be

or

obtaining

growth

capital gains
the

(3)

holding

The provisions for taxa¬

essential

of

difficult

more

mobility gains
which
could
have
been
capital from realized at the end of a six-month

dynamic situations,

for

'

mean

difficulty experienced

potential

economy.

it

Fewer

on

capital, and thereby the strength
and

and growing businesses would

new

the

ventures

new

facilitate

investment. V

*

risk

of

the

by

barrier to

a

decisions,

flow

by 17

shareholders.

of provide new jobs for
both population.

is

gains directly affects in¬

vestment

markets

poorer

treatment

losses

and

growth.*

capital

vol¬

transactions

capital with which to expand and

gains

nomic

in

postpone

reduced

(2) Less Venture Capital. Small,

the Congress:

inequitable and

most

would

The

securities

result

million

the

troductory paragraph to this part

"The

members

for the securities now held

following observations in the in¬
of the President's Tax

stocks.

would

gains

with

ourselves

initiative,

can

capital

IBA

longer holding period

a

of

ume

able to endorse

we were

all

investors

selling

Taxation

the tax brackets where

incentive, savings and investment

With

many

the

to

longer one-year holding

a

tal.

Revision of Capital Gains

In

be

holding

one-year

(1) Reduced Liquidity for Capi¬

addressed.

taxation,

estab¬

gain

it would result in—

generally and the goals to which
President's tax

a

to

capital

period should be rejected because

vestors, corporations, our economy
the

to

wrote

for

in¬

for

also

but

business

required

d

o

stating its view that the proposal

plications, not only for the securi¬
ties

that

hold¬

months

-

period. In May 1963 the Associa¬

industry is perhaps especially

our

six

long-term

a

extended

believe

we

i

per

lish

special concern about

a

gift,

by

or

recommendation

present

ing

minute of every day.. We

thus have

trans¬

assets

death

the

and»

caiptal

on

at

ferred

the

and indeed almost

thrust in

see

gen¬

need

which

tax
of

areas

greater

good

pleased to

seems

of

a

two

with

50%,

corporation must be permitted to

a

dividend

4%

capital

has

today by
at

and

volve

individual

top

so

but also to encourage

following

period

that

we

tive. Our economy is checkreined

thoroughgoing tax rate reduction,

Means Committee

astically

economic

management,

corporate

achievement

our

and

and

experience, work¬

our

is

Ways Association have taken for

proposals of the President.
Statement

of

the

by

House of Representatives express¬

ing

of

light of

basis

single barrier to full employ¬

ment

for

and

revision

statement

Means

for

provide both for

Taxation

March

in

sub¬

Internal

extensive

carefully

were

the

reduction

tax

These

form.

the

recommendations

changes

major

with

Congress of President

Kennedy's

est

sys¬

goals * * * it has become in¬

resources

began

year

tax

the last five years—that the

Congress and the

Administration.
The

equitable
the

to

/The

freedom.
Federal

our

an

creasingly clear

developing tax legislation

expressing

of

on

of

existing

structure would be better than no
reduction at all. At the same

Committee included the

your

proposal to repeal the proposal to impose a capital gains
tax on net gains accrued but un¬
$50 dividend exclusion

rate

tax

gains taxation which were opposed
by

tion and his

reduction in our

any

and

growth

Proposals for changes in capital

President, we expressed our view
that almost

Longer Holding Period

Opposed

dustry.

every

tax

opening statements in the Presi¬

effort to stimulate eco¬

an

growth

a

coming into the labor force every

to

will

resources,

young

in¬

securities

the

and

Thursday, December 26, 1963

.

The
President's
proposals for
of the revision of
capital gains taxa¬

growth which we

the

for

investors

.

to

desire, and to provide the jobs

necessary

Secretary of the Anchor Corp., holding company,,
was Chairman
of the Federal Taxation Committee.
Its Report read as shown herewith.
1963

likely

employment

and

manpower

the

that

view

most

full

rate of economic

all

H aire/Director,

R.

our

the

circum¬

current

our,

approach

achieve

Taxation Committee

is

.

in

form,

dends.

imposed
or

by the House

Such

treatment

on wages,

other forms

of

is

not

interest, rents,

income;

(2) The dividend exclusion and

of Representatives.

Continued

on

page

103

CERTIFICATES

PUBLIC UTILITY
INDUSTRIAL &

RAILROAD BONDS

PORATION
INVESTMENT STOCKS

MUNICIPAL

STATE,
'

and

CORPORATE

Knowledge, Experience, Facilities for Investors

R. W.
******




Members New
and other

Pressprich 8C Co.
York Stock

:/; y

-

Exchange

Npu)

Principal Exchanges

r

York Stock

;

- -- MEMBERS:

Exchange

Midwest Stock

SECURITIES

American Stock Exchange

Exchange

Detroit

Stock

(Associate)

Exchange

80 PINE STREET, NEW YORK.N.Y. 10005
BOSTON

•

CHICAGO

PHILADELPHIA
ALBANY

•

.

POUGHKEEPSIE

■

•

SAN

BUFFALO

•

HARTFORD
FRANCISCO

NEW

DETROIT

YORK

CHICAGO

ROCHESTER

POi.TlAND,
POI.TLAND,

ORE

Columbus

—

Grand

Birmingham

—

Rapids

—-

Bay City

Battle Creek

—

—

Grosse Pointe

Flint
—

—

Lansing

Muskegon

Volume

198

Number




6328

.

.

The Commercial and Financial Chronicle

*um
*

gfS&i
WW

^

<.<

i mmuitu

% oooaoaoooo

m

mmmi

SEE BOB HOPE AND THE CHRYSLER

THEATRE, NBC TV, FRIDAYS

Every part shown here
is protected by
the 1964 Chrysler Corporation

5-year

Every
this

new

50,000-mile warranty

or

1964 Chrysler Corporation

carries

car

warranty* that made automotive history. This

warranty

with

comes

1964

Plymouth,

transferred, adding extra value to

Valiant,

you

Dodge, Dart, Chrysler and the Imperial.
It protects you
from defects in

engine, transmission and other

for labor

as

well

as

All you

or

sell (as

some

'63

your car

owners are

V

'

have to do is have

your car

serviced

/

years or 50,000 miles, whichever comes first, against defects in materials and workmanship and
Chrysler Motors Corporation Authorized Dealer's place of business, the engine block, head and internal
parts, intake manifold, water pump, transmission case and internal parts (excluding manual clutch), torque converter, drive shaft,

universal

repair at

joints,

rear

a

axle and differential, and

rear

wheel bearings of its 1964 automobiles, provided the

owner has the engine oil
first, the oil filter replaced every second oil change and the carburetor air filter
months and replaced everf 2 years, and every 6 months furnishes to such a dealer evidence of performance of the
required service, and requests the dealer to certify (1) receipt of such evidence and (2) the car's then current mileage.

changed

every

3 months

or

4,000 miles, whichever

comes

cleaned every 6

■

V-..:

-

/

Plymouth

•

'

regu¬

anyway) to keep in effect the strongest protec¬

tion your car investment ever had.

*Chrysler Corporation warrants for 5
will replace or

when

already

larly (you'd probably follow the schedule shown

ex¬

here

parts.

trade

discovering).

against big repair bills resulting

pensive power-train components.
It pays

It lasts for 5 years or 50,000 miles. And it can be

,

y.' X

.

.

Chrysler

•

Imperial

•

Dodge

CHRYSLER
CORPORATION

"

The Commercial and Financial Chronicle

24

mended

Report of Subcommittee

amendment

an

Federal

solution

best

the

defensive

in

con¬

flict with basic principles of

their

problem.

to

Thursday, December 26, 1963

.

the

law

as

often

.

the

to

tax

income

.

measure

Therefore,

leaders.

legislative

it

cannot be assumed that legislators

On Municipal

IBA Sponsored Legislation

:

islation

Industrial Financing
ManagerMunicipal Department,
Estabrook & Co., Boston, as Chairman of the Sub¬
committee on Municipal Industrial Financing, pre¬
sented this Report to the Convention.
Subcommittee

the

Municipal bonds and

approved

Associa¬

experience and

Bankers

parties of the past

inherent

resolution

dangers

adopted

nicipal indus¬

in 1959 which clarified the type

mends that

covered by

In the
mittee

Association,

strengthen¬

opposition
municipal

in

Marsom B. Pratt

use

of,

use

adopted

a res¬

of

the

resolution

bonds

legislation

earlier

at

leveled

by

caution

in

marketing

or

un¬

in

ords

state

each

and

in

each

September,

or

does

through

Industrial

Municipal

not

credit

municipal

is¬

October,

ties constitutes

such tax-exempt

a

marketed.

was

indirectly by municipal industrial
largest issue
by excluding from the

The

prior

record

on

bonds and

largest

industrial

edent

issue

of

mu¬

bonds

to

date

for - comparable

this

issue

a

part of the

proper

On October 7,

1963, the City of

Lewisport, Kentucky
in

1960)

sold

(population

at competitive

$50,000,000 Industrial Build¬

received by the

dicate

which

million

$8

5%

The

term

bonds

purpose

a

was
syn¬

purchase

to

agreed

4%

turing 1967 to
000

City from

serial bonds
1972

and

bonds

in

due

issued

were

ma¬

$42,000,1988.

for

Continued

on

page

credit

and

2,000,000

19

9,300,000

Georgia

1

20

4,759,000

Kansas

2

1,625,000

Kentucky

56

91,457,000

Louisiana

18

12,655,000

1952
1953

1954
1955

32

11,790,000

1956

24

6,421,000

Industrial Bonds

1959

50

22,946,000

'

$

83,766.000

*r

7,612,000

8,500,000

Maryland

1

100,000

Missouri

,

1

425,000

274

88,917,500

Mississippi

1960

industrial bonds is

follows:

as

74 /

46,867,000

Nebraska

9

1961

46

71,771,000

New

2

5,380,000

1962

use

70

89,342,000

North

2

2,650,000

54

107,620,000

3

3,000,000
58,820,000

1963

finance

(9 mos.)

"Tax-exempt obligations, either

facili¬

general obligation or revenue or a

recom-

28,448,000

8,790.000

1

•

12,740,000

in¬

dangerous use of

35

2L

Delaware

6,920,500

47

combination

state

any

issued

thereof,

possession

or

by

by

thereof,

or

Tennessee
''

''

'

Dakota

Oklahoma

■-

•

Mexico

'

84
2

15,000.000

502

Puerto

-

502

9,750,000*

$412,593,500

Rico_

$412,593,500

the

of

political

*

issues

includes

identified by

not

IBA

records

any

instrumentality

public

agency

of any

of the foregoing including

or

nonprofit corporations, or by the
District of
of which

struct
in

Columbia, the proceeds
used to

are

'industrial
or

used for

con¬

whole

plant'

means

equipment

^

or

Pershing

The

industrial plant.

an

building

acquire,

(in

improve

or

part)

term

which

Go.

&

MEMBERS

any

is

NEW

manufacturing, assembl¬

STOCK

YORK

STOCK

AMERICAN

EXCHANGE
EXCHANGE

ing, fabricating or processing ar¬
ticles

commodities

or

building,

any

for

used

articles

manufacturing,

to the

eration

of,

to,

mere¬

WOrth 4-4300

or op¬

public facility

open

Private IFires

by the public."

use

Albany

The IBA Stand As

Rallying

a

Atlanta

Fayetteville, N. C.
Minneapolis

Point
;

BROADWAY, NEW YORK 5, N. Y.

Teletype 212 571-1313

inci¬

or

development

a

120

assembling,

processing is

or

appurtenance

an

dental

to

processing

or

manufacturing,

such

the

assem¬

commodities ( including

or

fabricating
ly

(including

equipment

or

fabricating

bling,

Hartford

Pittsburgh

South Bend

industrial
enced

Providence

Los Angeles

St. Louis

San Antonio
Youngstown

Wheeling

Washington

limit municipal

to

financing

other

Detroit

Dallas

Lima, O.

Ithaca

Houston

position the IBA has taken
efforts

Cleveland

Chicago

Buffalo

New Orleans

San Francisco

The

and its

have

responsible

influ¬

to

groups

take affirmative stands in opposi¬
tion to
The

municipal industrial bonds.

IBA

and is

service

for Banks, Brokers and Dealers

position is

looked

upon

Association's

positive

well known

as

stands

in

of the

one

important

more

the

field

Municipal

of

^

municipal finance.,
State

Vilas & Hickey

,

MEMBERS

Industrial
New

and

Financing Activity

Distributors

Legislation
of

Corporate

Securities

(on

state

a

suance

nance

to

Hardy
Members New York Stock

-

Members American Stock

Co.
Exchange

Telephone DIgby 4-7800

Main St. 8C

TWX:

212-571-0324

Meetinghouse Lane, Southampton, L. I., N. Y.

543 Madison

Avenue, New York 22, N. Y.

17 Clinton Avenue




South, Rochester, N. Y.

Stock

Midwest

Exchange

Exchange

authorizes

municipal bonds to fi¬

been

companies

issued

in

limited

in

Stock

local level) the is¬

has

Brokers in '

been

important to note thdt bonds have

sues)

American Stock

Exchange

industrial plants to be leased

legislation

new york 4

York

passed in 26 states. It is extremely
not

Exchange

of

which

or

private

and

25 broad street

80

Alabama

5,715,000

16
17

22

subdivision

Underwriters

the

of paying the costs of the

'Arkansas

$

1951

1957

The IBA definition of municipal

to

11

Uncertain

1950

United States, or by any

brokerage

in

short description of

a

is

as prec¬

issues

report of this subcommittee.

to

IBA Definition of Municipal

policy to

industrial

of

the

is

Y

Lewisport, Kentucky

the future,

sale

Bond

In

$57,620,000.

the

ing Revenue bonds. One bid

according to IBA records

volume

1963

~

construction

April of 1961.
Since

610

through the end of Septem¬

sues

applying to industrial plants fi¬
totalled
general obligation as

marketing public facility open to use by the
imply ap¬ public.

stated that the

report

in

1963

year

(plus the $50 million Lewisport,

ber 1963

affirmed definition of industrial plants, fa¬
respect. The re¬ cilities which are merely appur¬

Development Revenue Bonds sold

again

public credit for private

The
of

extreme

industrial

bonds sold according to IBA rec¬

The
criticism

overcomes

was

olution recommending that mem¬

municipal industrial financing,

municipal

bonds.

tax-exempt

ligation

legislation

dustrial facilities.

bers become thoroughly informed

of

volume

or

proval of such financing and fur¬

Stand

IBA

In 1951, the IBA

derwriting

for the

payments

1951

thermore that it is poor

exercise

rental

for

the

underwriting

such

industrial financing.

on

deductions

Revenue Code to deny

port pointed out that the language tenances to, or incidental to the
regarding the exercise of caution development or operation of, a

ciation's stand

The

of

Griffin,

(Ar¬

1960)

Company) 4% Industrial

&

and may be looked upon

The number of issues and dollar

the $50 million Lewisport, Ken¬
well as revenue bonds, by apply¬
1961 by ing to industrial plants financed tucky issue which nearly doubled

Governors

of

sound in every

as

to

Board

clarified

as

ing the Asso¬

P.

Volume of Financing

Alabama

in

1,349

million

$25

Cherokee,

(population

isue

report of the Poole Com¬

unless it be in

in

the 1951 resolu¬

approved in May

the

direction

introduced as

was

by Representative Rob¬

the

was

of

mour

that proposed

as

time

nicipal

nanced with

modification

of

of

olution.

no

given to

the

was

tion and reaffirmed the 1951 res¬

consideration
be

A

bond

bonds
recom¬

legislation such

Se¬ by the IBA.

Michigan on
June 4, 1963. The legislation if
passed would amend the Internal

acter.

trial

Governors,

ert

regarding mu¬

and

Municipal

the

as

against remedial

vote

will

interest payments on mort¬
Kentucky issue) is as follows:
gages
bn, industrial plants fi¬
public financing of this char¬
nanced by revenue or general ob¬
Financing in 1963

of

position

which,

1963

in

by

H.R. 6772

their efforts to in¬

use

form interested

Investment

tion

on

Financing has reviewed

Industrial

early

state with enabling legis¬

a

lation

curities Committee and the Board
of

Marsom B. Pratt,

The

from

This Subcommittee drafted leg¬

this
Town

so

under

of

11

(6

use

far

as

existing

these
or

we

RAILROAD

SECURITIES

states

fewer

are

INDUSTRIAL

PUBLIC UTILITY

is¬

able to

ascertain, has been made of such
legislation in 8 other states. Only
7

states

Kentucky,

(Alabama,
Louisiana,

Mississippi',

Nebraska and Tennessee)

are

ac¬

tively involved. Many states have
passed

enabling

26

BROADWAY, NEW YORK 4, N. Y.

Arkansas,

legislation

as

a

Telephone:

Teletype:

HAnover 2-7900

212 571-1530

Volume

Number

198

their

in

Summary of Report of

could call

Municipal Practices Group

members

as

intent to do

assignment made to the Com¬

mittee

its

and

With the

implementation is

apparent

foregoing

(5)

to

submitted

as

number

of

there

specific recommendations relating

functioning

of

syndicates

undivided accounts

as

issues sold by public bidding.

on

a

syndicate procedure. The more

to

important

Undivided

or

Ac¬

counts.

Consideration

f

o

lowing
eral

gen¬

ed

prin¬

(1)

Syndi¬

cates

not

are

fact

have

the

of

members'

ac¬

(2)

of

Alan N. Weeden

gives

practice

form

For

this

of,

the

and

the

to

1 (3)

means

to

in fact

of making

man¬

authority, and its pro¬
and

practices, responsive

procedures

and

of their

greater part

participate in the

count

termination

ticularly

and

by

cedures

in

an

as

he

on

completely

acting

proxy

as

all

originating

prior

by

such

at least 10

delivery

to

of

by

the

to

submit;

final

meeting

terms.

(9)

Federal Funds

Delivery

manager
as

*

Municipal Advisory Councils

£t

practicable
a

bonds

by

the

as soon

receipt

after

of

the issuer, preferably

single location; simultaneous

deliveries of
more

.

of

should take place

bonds from

Legal Opinion

the

preliminary

report; before the
set

to

limits;

cities

,

new

is

V

r

-

the number of out-of-town mem¬

bers

ticable because of greater cost and

Miscellaneous

a

member may proxy

order to reduce the

single

views

member's

(c) Out-of-town
should be

on

known

to

price

Francis I. duPont & Co.

syndicate

price restrictions,

whether

a

member

or

of members have the right

initiate

bonds

other

principal security markets in the United States and Canada

a

meeting
or

to

splitting

discuss
up

the

Dealers

Distributors

Underwriters

remaining. The committee

recommends that sale of all bonds

should automatically remove price

should

precisely

the

par¬

account automat¬

the

and

membership,

restrictions and
should
as

be

the

account

as

quickly

terminated

possible thereafter. It also

ommends

that

managers

Corporate and Municipal Securities

rec¬

provide

Robert Fulton Maine Company

MAIN OFFICE: ONE WALL STREET, NEW YORK 5, N.

TELEPHONE:

Private Placement

Y.

DIGBY 4-2000

Financing

OVER 100 OFFICES: Arizona, California, Colorado, Connecticut, Delaware, district

NEW YORK

PHILADELPHIA

CHICAGO
of

60 Broad Street
New York

4, N. Y.

Dlgby 4-5757




Phila. Nat'l Bank

Bldg.

columbia,

florida,

georgia,

hawaii,

illinois,

indiana,

iowa,

kansas,

louisiana,

208 S. LaSalle St.

Philadelphia 7, Pa.

Chicago 4, 111.

LOcust 4-1396

FRanklin 2-1689

maine,
york,

massachusetts,
ohio,

vermont,

oklahoma,

michigan,
oregon,

virginia; washington,

minnesota,

missouri,

pennsylvania,

wisconsin,

rhode

canada,

the

nebraska,
island,

england,

new

jersey,

tennessee,

germany,

members

participation through

Continued

Exchange and

any

on

ready to commit as to

final bid and

longer delay.

New York Stock

for, in

impact of

final bid.

issues in, two or

generally imprac¬

Printing & Postage

Members

and

(b) Managers might well limit

Redelivery

Shipping & Delivery

a

closely

or

for

phone

just before sale time to get final

issuer.

(where applicable):

after

meeting to get

recom¬

pro¬

procedures

and

made

days

letter

<

by

meeting if they have price ideas

furnished

is

same

notice

something like the following

Cost of

firms

them

calls; i.e., before the preliminary

share, provided

member to the manager

equity requires that expenses be

Printing of Bonds

those

their

equitable,

practices and

considers

also

price changes

then it follows logically that these

practices

syndi¬

should evidence consideration for

9f the account, par¬
to whether sale of all

from the

ac¬

member is based, in

a

pro

ratio that

the

and

(a) Out-of-town members

bonds

permitted to share

participation in

to

the

clear regarding

b^

group

to

participation

part at least,

be

should

ters

ac¬

count.

If

of

carry

Members

Proxy Arrangements
par¬

ing

Good business practice and

categories

where applicable.

carry

cate bears to that of others wish¬

pocket expenses.

settlement

the

desiring to

rata in the carry in the

of

language in syndicate let¬

removes

a

actual out

in

should be

charge and shoulcl be identi¬

show

total interest earned and total cost

(11) Out-of-Town

Carry Arrangements

their

state¬

-

ticipate

over¬

separate from

Duration of Account

and/or

to

or

fied

meeting terminates.

terminates

these

is

final

the

before

ically

practices

(4)

estimated

general desires of the ac¬

decision

ex¬

syn¬

should

participations

bonds

make

account

final

rendering

managers

before

within

established

be

membership is for members

the

nor

small

listing

Revised

should

(3)

cedures

count

(d)

ac¬

reasons,

The

agement

(8)

head

the

(b) In

of

account.

the

to

dicate.

mended.

;

J

practical

should be credited to the

money

the account's

on

accrue

pro¬

and should

industry

too

brackets

ticipation

The most effective and

continue.

to

number of

a

existing approach is

best for

manager

Those members

compiling

in

holds good faith

should

Where practical, the use of

(c)

cedures followed in their own

counts.

the

clearance, handling

itemized

profit

arrange¬ deposits for an appreciable period
desire. The after delivery, then interest on the ments,

so

Advertising

larger par¬

participations

become

alphabetical

management almost sole authority
the

a

manager

by 30 days after final

delivery, interest

other

they

management's
overhead
charges, if any, should be labeled

as

a

been settled

splitting the account.

operandi."

Present

over

to

own

manager's

"modus

If

be estimated. If accounts have not

Managers should not permit

(b)

ject to invita¬
ceptance

the

rendered could

bracket.

ticipation sub¬

the

far enough in ad¬

Telephone & Telegraph

taking

from

at

manager

meeting.

have not yet been

bills

which

for

costs

necessary,

ticipations than those of the major

ven¬

and

letter/

Managers should not be re¬

(a)

strained

ture with par¬

tion

their

in

Participations

(2)

aspects of

joint

a

"undivided"

or

main body of the

they

many

should print "di¬

and

syndicate letter separate from the

partnerships.
In

undivided at the time of its

or

vided"

•

account will be divid¬

an

formation,

ciples:

specify

should

Managers
whether

an¬

Good Faith

(7)

of their

penses,

into

competitive

syndicates leads initially to the fol¬

the

by

final price

Expenses

(b)

are:

ones

Divided

(1)

New Issue Syndicates

are

nounced

part of the syndicate agreement.

the

~

to

should be

bond

per

fol¬

lowing final delivery of bonds. If

Advertising plans and the cost

expects to charge should be made

reviewed. The report is limited to
consideration

advised

amount

maximum

preamble,

as

so

should

ments

application.

readily

are

make

to

vance

(a) In
be

their

right

the

settle accounts within 30 days

/

Advertising

thereof

Settlement of Accounts

(10)

(a) Managers should attempt to

agement fee they care to so long

Co.y New York City. In making available the
following summary of the Report, the Committee
urged that the COMPLETE document be read by
the membership of the Association.
and

Fees and Manage¬

charge any clearance fee or man¬

&

Introduction

(6)

ment Fees

have

Estimated

or

Day Loans

account.

Managers

Report of the Special Committee on Municipal
Practices, a comprehensive document gov¬
erning a number of recommendations relating to
specific operating procedures of the syndicate sys¬
tem, was presented to the Convention by Chairman
Alan N. Weeden, who is Vice-President of Weeden
Business

Fee

Overhead Charges

members

meeting to discuss the

a

of the

Clearance

(4)

The

The

which

Clearance

letters for

syndicate

under

means

future

'

25

The Commercial and Financial Chronicle

6328

new

texas,

switzerland.

page

45

The Commercial and Financial Chronicle

26

District

Report of IBA State

Columbia

of

but

1963,

This proposed

•

.

Thursday, December 26, 1963

.

policy would pose

further

on

action

had

some

obvious

the bill

no

been taken

2,

May

on

.

by Nov. 26.

nical

problems, but the Mid¬

practical and tech¬

western Securities Commissioners

Legislation Committee
Robert A.

&

to the Convention.

this

year

fact that

the

to

is

in

state

demonstrated in the

there

ment

In

securities

states.

Act

is

been

which

Nevada,
no

new

These

have

of

registration of securities.

had

in

twenty-six

/

licensing

advisers, and requirements

for the

state

acts

the

broker-dealers, agents and invest¬

amendments

were

for

state

previously

securities

in several of

accompanied

unlawful for

by many new

act

administrative

broker-dealer

in

the

to trans¬

state

as

that

provides

of

persons

does not

include, among others,

in

the securi¬

broker

the

the

term
a

dealer registered under

or

Of 1934; a person who is a member

examination

of

salesmen.

of

State

Securities

Complete

National

the

and

Nevada.

this
A

bill

Association

of

act

Columbia

the

a

specified

15

of

sell

bv

Appendix A.

Georgia;

summarized

Hawaii;

Florida;

Illinois;

Iowa;

Massachusetts; Minnesota; Mon¬

tana;

Nebraska;

Nevada;

New

Oklahoma;
Dakota;
West

Oregon;

Tennessee;

South

Texas;

Utah;

The

Utah

Act

May 14, 1963), based
form Act with

a

few

the Uni¬

modifications,

includes antifraud provisions,

re¬

filed

a

prescribed

the

Adminis¬

has

approved

is based

on

new

Columbia

Act

in

the

(H.R. 4200)

the Uniform Act with

several changes. It includes anti-

the

(effective

on

state

filing fee of $500 and

proposed
of

for
new

the

intrastate

has

he

fraud provisions and

Virginia; Wisconsin.

The

to offer

registration

requirements;

held
of

on

the

have

of

broker-

Hearings

were

shareholders
order

state

pleased

are

to

additional

several

amendments

a

antitrust

the

tax

court

be treated

report

that

states

as

by
year

return

a

bf capital rather than as a taxable
dividend and that only five states
now

stock

treat the distribution of GM
taxable

as

dividends to

Du

Pont shareholders.

with

states regarding the requirements

view

a

to

VI

'

I

the

of

submitting

Uniform Form For Consent to
Service of Process
The last Annual

Report of the

Committee reported the prepara¬
tion of
SEC Study of the

Securities

state

Markets

led

this

that

uniform application for

a

registration

U-l),

(Form

Committee

of the

many

self-regulatory

conclude

to

to

securities

of

be

used

sitate close

eral

which

by

Form.

neces¬

The

agencies

or

cooperation with state

achieve effective regulation with
minimum

restraint

of

the

on

SEC,

adopted
,,

Regulation
American

Bar

of

reputable dealers.

Form

of persons in

of

U-2)

to

U-2A)

and

Uniform Form

a

Resolution

be used

in

(Form

connection

with the uniform application to
7,
register securities. The Uniform
pointing out that the basic regula¬ Consent to Service of Process is

tory

in respect

control

to

com¬

petence is the examination, sug¬
that

maximum

achieve

to

Examiners

a

of

should

Securities

be

Board

established

Delivery of Offering Circular

also

intended

to

be

used

in

ap¬

plications for broker-dealer regis¬
with

trations

Both forms

the

were

various

states.

adopted and

proved in February,

ap¬

1963 by the

Midwest Securities Commissioners

by and for the various regulatory Association
and in November, 1963
and
self-regulatory agencies, to
by the North American Securities
/'' Confirmation ://.'// administer existing programs and
Administrators
(subject to any
The Midwestern Securities Com¬ foster improved programs.
Since local
requirements). Great credit
missioners Association as a meet¬ many states now require exam¬
for the work in the preparation of
ing on July 26, 1963 tentatively ination of salesmen as a condition these forms
due
Donald
L.
of registration, it will be essential
approved the following proposed
Calvin (Francis I. du Pont & Co.,
statement of policy for the pur¬ that some uniform or coordinated
Chicago), Chairman of the Sub¬
examination procedure be adopted.
pose of consideration and further
committee on Uniform Forms.
to Prospective Purchasers to

discussion:

Fortunately,

"No public sale, offer to sell or

solicitation
made

of

final

of

an

interest

shall

be

original issue of

se¬

unless

offering
to

a

circular

the
*

preliminary
has

prospective
i.

or

been
pur¬

being

done

much

is

already

cooperation

by

be¬

vn

tween state securities administra¬
tors

and

NASD,
the

stock

IBA.

It

procedure

whereby,

in

of

and

is hoped

be

those

that

a

developed

which

states

examination of securi¬

an

NASD

or

any

York

the

exchanges

can

salesmen,

Exchange

New

representatives

the

the

person

New

passing

York

Examination

Stock

will

be

Group Legislative

Activities
There

were

several

important

legislative developments this
in states in the New York

New

York

Securities

New York.

One of the amend-

ana

UNLISTED TRADING DEPARTMENT

7
Wertheim & Co.
York Stock Exchange
5

One William

Law

summarized in Appendix A.

MUNICIPAL AND FOREIGN SECURITIES

LEHMAN

year

Group,

in addition to the amendments to

the

INDUSTRIAL, RAILROAD, PUBLIC UTILITY




to

(designated

recommendation

ties

YORK

the
has

the securities

industry,

require

NEW

State

of

Consent

Process

Corporate

Uniform
on

Association

Uniform

a

tions

on

Securities

of

states

Uniform

.

Forms of the Committee

Service

example, in Chapter II of
the Study dealing with qualifica¬

38

the

Subcommittee

drafted

For

listed

and

had

conduct of legitimate business by

results with minimum burdens,

Proposed Policy Regarding

offering covered by the applica¬

recommenda¬

regulatory authorities in order to

National

chasers."

SKCembers Z\Cew

only

tion has been filed with/the Fed¬

regulation by

legislative amendments will

gests

IV

House

the

plus any sup¬

of the laws of that state.

Securities Commissioners,

ern

a

provided that such distribu¬
shall

State Examination,

recommendations to the Midwest¬

laws.

rulings this

or

other

Uniform

the

take

the SEC Special where a registration statement
Study of the Securities Markets covering the securities and the

pursuant to

under

will

persons

Those parts of

tribution of GM stock to DuPont

delivered

on

Convention

Annual

IBA

been

Appendix B of this Report sum¬

the bill by a subcommittee

Committee

the

which have been released thus far

present

require¬

satisfactorily and all

proposed policy at its meeting at

tions for additional

the

consider the

will

ment

examination which
proposed plementary
tentatively may be required in individual

further discussion.

This Committee

revised^

Stock to DuPont Shareholders

curities
dealers and agents.

approved

was

numerous

Distribution of GM

it

such statement.

District

'

in

public

with

a

makes

person

Administrator

the

the

the

which

on

the

in

institutions.

containing

information

Mexico; New York; North Dakota;
Ohio.

a

unless

statement

trator with

Kansas; Maryland.

of

broker-

Act

security

any

means

offering

!

;

California;

the

unlawful for any
or

Arkansas;

other

or

lowing 26 states
in

transactions,

dealers

se¬

effects

exclusively with is¬

Section

curities acts this year in the fol¬
are

he

of the securities involved in

suers

the

if

of

District

Amendments to

Congress.

transactions

acts

place of busi¬

state

the

is pending

(H.R. 4200)

in

trust company; or a

or

person who has no

Utah

proposing

securities

for

in

year

published

III

tion

in

A

and

State Tax

have

ness

securities

new

adopted

were

1957
reflects

amendments

institution

Acts

was

October,

Securities Dealers; a bank, savings
Amendments to

Digest

Digest

Exchange Act We

the Securities and

Robert A. Podesta

similar

buyers.

"broker- situation with respect to the dis¬

defining

5,

dealer,"

industry,

institutional

to

a

agent unless he

or

qualification

particularly

sales

state

(a)

securities and (b)

and municipal

registered under the Act; but marizes

is

ties

securities acts for

its basic

any person

business

Section

the

Digest of

a

the
adopted since that time.
(effective July 1, 1963)

unique

regarding

published and is

act,

requirements. Section 13 makes it

requirements

has

policy

that

for purposes of

Securities

exemptions from requirements of
state

quirements

IB A

The

Pertaining

Exemptions

of

mailing to members

_

legislation

emphasized

to Municipal

Co., Inc., Chicago, as Chairman of the State Legis¬
presented the following Report

activity

Digest

Podesta, Senior Vice-President, Walston

lation Committee,

The

II

have met the

deemed to

BROTHERS

Street, New York

N. Y.

I

Volume

Number 6328

198

ments to the New York Securities
this

Law

(summarized

year

Appendix A)

requires that

broker-dealer

required

in

every

to

be

registered in the State shall have

.

.

The Commercial and Financial Chronicle

.

holders'

meeting held within six

months after the default. This bill
was

opposed

Committee

the

by
of

the

Legislation
New

York

Group which pointed out, among

27

Secretary of the corporation to the

This

claim

verse

stockholder setting forth the
his

of

determination

information
and also

basis

that

such

required by law

was

making

any

information

had

amendment

been
was

received.

vigorously

ducting
age

or

transacting

opposed by the Legislation Com¬

reflect

mittee

of

This proposal was

but it

was

the

New

York

Group,

adopted.

broker¬

a

business, to keep records to
compliance with the Act.

opposed by the

Legislation Committee of the New

In Connecticut there was also York Group and was defeated.
other reasons, that it might be secured pursuant to the law avail¬
a net capital of not
$5,000. There is present¬ impossible in certain cases for able to all stockholders and not proposed a transfer tax on all
Important Amendments to
broker-xlealer
to
determine merely to management.
uncertainty regarding the a
sales, agreements to sell, memo¬

and maintain
less than

ly

some

treatment

of

securities

in

certain

types

of

computing net capi¬

whether
fact

the

held

beneficial

1%

or

In Connecticut Section

in

owner

of stock;

more

of the Uniform

8-313(3)

Commercial Code

tal, but it is expected that there

that if the law would only apply

(originally providing that notice

will be

a

to;6ases where the

of

tion

by

or

next

clarification by regula¬

amendment in the

an

session

the

of

York

New

Legislature.
The

New

Property

York

Law

Abandoned

amended

was

to

owner

held 1% or more of stock, the bill

street

names;

that

and

would

requires that

available

other

New

York

dealer,

or

broker

or

by

dealer

record

of

tomer,

where

thereon
and

broker

a

nominee

a

holder

as

security for

a

a

remained

tive

as

The
a

bill

series

to
was

not

be

stockholders.

amended to require

the

of notifications from

the
to

to the broker

or

in

such

delivery

an

as

as

on

at

a

each $100 of face

to the

tax

from

the

designated value,

It

was

indicated

was

notice

no

of

an

ad¬

that

the

also intended to apply to

New

in

Jersey.

New

unclaimed

visions

every person

and firm engaged in

receipt thereof, be turned
State

Comptroller

of

shares

or

or

certificates,

transfer
or

doned property." There

ception

where

dealer
the

the

written

has

an

evidence

entitled

person

is

ex¬
or

that

thereto

has

knowledge of such account within
the past five years.

Likewise,

security held by such
flected

recorded

or

any

persons, re¬

included in

or

Year after year

the budget of Puerto Rico furnishes evidence of the

Commonwealth's sound fiscal policies. For example, the budget
quirement

re¬

for this year's debt service—including both principal and

interest—is

less than 6%.

account with respect to which

an

successive!

five

for

statements

of

all

years

account

mailed to the customer at his last
address

known

turned

for

such

to

nominee

broker-dealer

locate

to

the

or

the
or

is

"abandoned

deemed

property"

to

be

must

and

to the State

amendment

dynamic

be

approximately 94% of all

program

geared to

economy.

penditures is allotted

to

meet

revenues can

be utilized

the needs of Puerto Rico's

Moreover, nearly half of each year's

ex¬

education, health and welfare.

The Commonwealth's small indebtedness is
soundness of its

nominee,

a

basic factor in the

general obligation bonds. Free from both Federal and

State income taxes,

they provide attractive

returns at current prices,

turned

Comptroller. This

as

do the

revenue

bonds of the various Puerto Rican Authorities.

by the

Opposed

was

a

that

rapidly growing

has

customer

by such broker-dealer

over

for

means

cus¬

communication

received from

been

re¬

with respect to which

and

written

no

been

by the postal authorities

inability

tomer

have

Th is

other

or

communications which have been

Legislation Committee of the New
York

Group, but it

An amendment

Government

adopted.

was

proposed to

was

mercial

in

Code

New

York

section

of

broker

1311

Ponce De Leon, Avenue, San Juan, Puerto Rico-

provides that notice

adverse

an

the

claim, received by
by the

or

purchaser

after the broker takes delivery as
a

holder for

as

value, is not effective

to the broker

chaser.

or

The proposed amendment

would allow the

situations

to

purchaser in such
demand

from the broker of

security"
of

to the pur¬

as

to

as

delivery

"equivalent

an

which

notice

no

adverse claim had been re¬

an

ceived.

This

dorsed

by

amendment

the

Institute

and

ference

of

Uniform

State

is

en¬

American

Law

National

Con¬

the

Commissioners

Laws,

it

but

on

was

vigorously opposed by the Legis¬
lation

Committee

York

the

of

Group, both

New

to principle

as

and because of its vagueness. Final

consideration

this

of

amendment

postponed until next

was

year.

Changes in Connecticut
Connecticut:
'

■

in

S

'

the

introduced
•',

have

holder

of

beneficial

a

bill

required

or

true

stock¬

any

who

record

7

"

Legislature

Connecticut

would

upon

A

V

is

owner

not

the

of stock,

inquiry by the Secretary of

corporation, to disclose in writ¬

ing the names and addresses of all
beneficial
of

the

stock

owners

issued

of any

1%

of

or

more

Wm

outstanding

and

particular class. The
that on de¬

bill further provided

m i

pill
'

fault of timely disclosure of such

information,

such

stock

would

not be entitled to vote at a stock¬




for the Commonwealth of Puerto Rico

re¬

lating to notice of adverse claims.
This

Development Bank for Puerto Rico

Fiscal Agent

section of the Uniform Com¬

the

\

the
a

bill

and

it

is

pro¬

be¬

substitute bill which

Continued

"aban¬

broker

were

adoption in New Jersey of legis-

con¬

to

over

as

several

that efforts will be made to obtain

customer for five years following

the

of

lieved that

the

by

introduced

industry objections to several

nominee

or

bill

proposed

Jersey Securities Act. There

1946

30,

A

important amendments to the New

thereto

June

Jersey

original issuance of securities. The avoids most of the objections will
bill
also
would
have
required be considered. It is also reported

"equivalent security" making sales, delivery

which

were

rate of 40 for each and every

share.

situations

without

issued

effec¬

amended to allow

was

purchaser

to

purchaser
delivery

for value, was not

broker of
as

the

by

or

demand

of 40

claim, received by value or, where the shares

broker takes

New Jersey Statute

other transfers

cus¬

by such broker-dealer
has

in¬

rate

a

or

certificates of stock at

or

paid

respect

after

the

of sales

of

amount

any

with

or

received

or

such

of

broker

formation wasonly available fof purchaser)
and

in

the

adverse

easily be circumvented by after the
placing stock in a number of a holder

management

securities held

an

could

include securities. The amendment
any

of record

randum of sales

45 Wall Street, New York 5, N. Y.

on

page

51

,

28

The Commercial and Financial Chronicle

the

in

Report of IBA Governmental

advance

September

re¬

The Treasury introduced a

(2)

Bills

by

supplemented

Reserve

funding.

market

open

.

.

Thursday, December 26, 1963

.

Federal
operation

pressure

In the

outside the short term area of the

the

Robert

B.

Blyth,

of The National City Bank of
Cleveland, who was Chairman of the Governmental
Securities
Committee, submitted the following
Report to the Convention:

quarterly series of $2 to $2^

billion

United

continued
1963

at

States

Treasury has

one

work

effectively in

It will

to

the

massive

job

of

keeping

public

debt

.

our

under

The

v

way

which

extended

be

in

average

the

months

Treasury
succeeded

and 2

monetary

on

Robert B. Blyth

balance of
upon

criteria
a

the

high

of

almost all

sound

debt

Treasury

team

score.

Debt Management

been financed

over

$4 billion has

entirely outside the

banking system. Indeed there has
a

The

able

material reduction in bank

from

market.

the

prices received were favor¬
but

the

auctions

adverse

certainly
as

because

success

The size of the debt due within

technical

market.

In

condition

in

issues

quarterly

financing

(3) The Treasury continued the
the

of

the

order,

correct

to

this

official

purchases

were

Treasury

the

of

made. Sub¬

placed

$1,250 billion of long bonds

Advance

and

prere¬

exchange offerings to

attract investor

We all

long

are

be associated with any program

We

1963

moved

have

largely

very

in

not

in

the

supply

it

order to stem the outflow of gold
in response to interest rate differ¬

abroad.

entials

plished
the

This

without

free

flow

was

accom¬

with

interfering

of

capital and the

orderly creation of credit in this
country.
The

tions

into

■■■--'

>

opera¬

the whole fitted smoothly

the

market.

As

a

matter

of

fact, the price fluctuations in in¬
and

long-term

materially less
for

many

bonds

than' it

years.

has

This

was

also true in spite of the strong

result

actions

These

taken.

free

the

discount

Q

banks

was

to

pay

up

to 4%

deposits of 90 days

permitted banks to be
petitive

in

made

to
to

additions
the

that

were

supply of Treasury

market

activities

Federal Reserve and the
have

negotiable

certainly had

perspective. It is

porations

for

short

as

a

substitute for other

term investment.

business

This

is

tremen¬

importance in the

money

The

certificates

are

the

currently

a

our
a

as

activities

opinion that

have

in

the

lished

ac¬

equation
the

that

has

times,

the

Federal

The

isfy

open

market objectives with

of these certificates

side

tend

to

produce

by banks will

further

the

other

upward

Members New York Stock

Treasury Bill area.

times,

the

Treasury

Exchange

Securities
American Stock
-

/

'

•.•

,

:

'

•'

-

'

'

-

.

Exchange (Associate)
:

.

...

*

•••

''

'

.

Members New York. Stock

Washington
Philadelphia
Bethlehem

PoffstowN

* Y




Baltimore

"

60 BROAD

;

*;

STREET, NEW YORK 4, NEW YORK

Exchange

Telephone

New York

New Canaan

*

>;

.•

Auchincloss, Parker & Redpath

HAnover 5-4200

Wilkes-Barre

Montclair

FaLls Church

Newark
Clifton

Reserve

less rate impact by purchases out¬

Corporate and Municipal

'

estab¬

continued increase in the issuance

INVESTMENT SECURITIES

i

in

presumably has been able to sat¬

FAULKNER, DAWKINS &. SULLIVAN

■

not

present level of rates.

EAST HAMPTON

.

official

whole

Teletype 212 571-0680

Underwriters and Distributors

the

market im-

Telephone REctor 24949

HARTFORD

of

Treasury

themselves been the major factor

$10 blilion

outstanding.

year

market

a

of

and

pact but they must be viewed in

time certificates of deposit to cor¬

are

on

atmosphere

Official Market Activities

Open

more com¬

offering

iri

savings of

ket.

This

or over.

and

resulted

without strain in the money mar¬

time

on

time

on

that

re¬

the higher

three years has been handled in a

to

3

evaluate

was

paid

non-inflationary

modified to permit

out

effect

rates

pe¬

low in¬

a

great credit expansion of the past

in the

from

rate

mu¬

the country so effectively that the

the

Treasury in tively traded in the market and it At

undesirable

to

the mobilization of the

3%% in July. In addition Regula¬
tion

market.

other rates has been attributed in

bias

rate

interest

banking system and the increase
in

marT

been

>

membering that it

econ¬

include

is estimated that about

part

the

of

reserves

lower

interesting

an

riod for economists with

risen

the

in

increasing short term rates with¬
any

market.

monetary actions that have been

dous

"Operation Twist"

a

assets

produce

obviously

together with the important savings deposits

omy

developing

maturity of tbe debt.

The success of the

as

strength

reduction in

■

Treasury financing

on

continued

to

have

that

terest

largely

very

the

in

longer term

into

tended

This will be

have

rates

market

yields in other markets. The

the other.

term

short term

has

kets

market purchases of longer

Short

the

most affected have been the

issues

on

has

nicipal market and the mortgage

term

objective

increasing short-term rates in

continued

increase

of

hand

one

deposit

only

period

or

open

of

the

year

be

the

contrast

This

12-31-60.
time

lectively

to

response

In

same.

the money has been channeled se¬

by appropriate monetary
and

time

Banks

direction of higher rates and since

natural forces—imple¬

to

all

altefed supply and demand forces

re¬

eral Reserve achieved its

and American Stock Exchange

NEW YORK 5, N. Y.

in

on

the

SECURITIES

large

whole interest rates

as a

the

ending

of

that when you look at the

agree

in

$31/£ billion in the 10

substantially

do

billion

Commercial

average annual increase was

maintaining interest rates at any

in

efforts of the Treasury to extend

Brokers and Dealers in

about

not

Treasury Bills

was

Members New York Stock Exchange

should

purchases

$15

in

and the increase this year may

market policy.

convinced, however#hat

bond

about

deposits

to proper Fed¬

as

open

deposits in the Com¬

Last year there was an, increase
of

have all shad¬

manipulation

policy by the Federal Reserve. It

BROADWAY

Reserve

decisions

participation.

true despite a tightened monetary

120

ings of opinion
eral

time

tremen¬

savings and

Impact of Enlarged Time Deposits

committee

essential cooperation of the Fed?

been

& RAILROAD

this matter, we

mented

was

INDUSTRIAL

on

sponse

the

termediate

Adams & Peck

'Securities

the

been

a con¬

of the thinking of the Gov¬

ernmental

has

important

mercial Banking System.

com¬

Operation Twist at ail-

on

given level.

operations.

un¬

of the

of

condition

long-term bonds

over

an

impact that they had on

sequently

held debt thus far in 1963.

short-term

Finally, the Treasury with .the

bonds were sold at very

spreads

ment

market

dous accumulation of
other

to

money

money

long term

influence

;

foolish

Certainly I cannot give you

varied

could not be described

the

of

regular

perhaps

am

funding techniques and effectively

held. A total of $550 million

qualified

The increase in marketable debt

outstanding of

the

made to improve debt man¬

long

close

payments. Based
management

of

I

year

(1) Two auctions of long bonds
were

the

with the

interference

some

pose

agement techniques.

adverse

than

times

more

quarterly auction did and it does

years

During the year further efforts
were

country by the

been

5

eight

mar¬

Oct. 31.

on

this

on

achieved

and

11

Techniques

ob¬

readily accepted but it does

will pricing
The

and

years

the

ket

use

with

accepted

4

12-31-62

months

New

disciplines

forced

of

moderately.

was

domestic

the

of

in

reconciling

jectives

maturity

average

marketable debt outstanding

noteworthy is
the

billion

reduction

offsetting

has

series

new

"Operation TWist."

ap¬

sensus

$3.2 billion in 1-5 year maturities,

control.

Particularly

increase about $1.7

an

The

auction.

well controlled. bring; the Treasury into the

year has been

with

had

times

at

peared to be an amount too large
to

been
The

which

term

far and away the most

of one year market and accelerated Treasury
bills. The monthly series of ap¬ Investment Fund purchases. These
proximately $1 billion displaces activities have been described as
monthly series

new

short

on

rates.

Teletype

212 571-1657

At

has

Number 6328

198

Volume

market

coming
the
of

turities

of

ketable

will

such

In

issued.

were

purchases

the

new

issues of

period.

have been
in the

made

Certainly these purchases

strong efforts of the Treasury to

which

issue longer term securities.

market is

offered many

exchange

options

In

1962

and

1963

$31 bil¬

over

lion of Bonds with maturities be¬

yond five
As

market.

improve

part of the effort to

In

original

ferent

Bills

securities

of

nar¬

government

similar

a

the

manner

repre¬

Treasury

of

issuance

of

Chemical

New

7 COMMITTEE

licly held
different

debt

options- to

turity

in

dates.

Holders of

or

about

accepted

The

before

standing

Federal

and

debt

of

than

investment

York

The Chase Manhattan Bank

New York, N. Y.

York, N. Y.
Arthur W.

The National

City Bank

>'

Cleveland, Ohio
,

•

,

Milton

•

.

/

_

1

New York, N. Y.

Chicago, 111.

Lockett Shelton

Ralph F. Leach

•

S. Bosley

Republic National Bank

Morgan Guaranty Trust Co.

National Bank of Detroit

New

Dallas, Texas

York, N. Y.

Detroit, Mich.
Pat G. Morris
F. Newell Childs

C. F.

Girard L. Spencer

-

Salomon Brothers & Hutzler

The Northern Trust Company

Childs and Company, Inc.

Chicago, 111.

New

'

Chicago, 111.
Continental

The First Boston
New

Corporation

York, N. Y.

Security First National Bank

Illinois National

Bank and Trust

Los Angeles, Calif.

Company

Chicago, 111.

James A. Cranford

York, N. Y.

Franklin Stockbridge

John H. Perkins

Carl F. Cooke

Schlichting

Bankers Trust Company

William J. Wallace

Mellon National Bank & Trust

William W. Pevear

Irving Trust Company

Company

New

Jacksonville, Fla.

Pittsburgh, Pa. >,

York, N. Y.

C. Richard Youngdahl

Delmont K. Pfeffer
The First National

New

New

York, N. Y.

Aubrey G. Lanston & Co., Inc.

City Bank

York, N. Y.

New York, N. Y.

,

ever

again diminishes the

and

dimension

large
r

Fi¬

market.

conduct

These

and

that

Account

de-

a

too dependent on

action"

"official

Treasury

have

can

bilitating effect on the market as
dealers become

out¬

Reserve

Investment

New

nally, official market activities of

of the entire pub¬

marketable

exclusive

'Treasury

is

figure

greater, lati¬

investor

role of the secondary

extension

an

billion

$43

held

Bills

due

Vz of the dollar amount

equal to 37%
licly

their

$14 billion

over

the
for

tude

ma¬

of

advance

involved
offer.

extend

Bank

Harris Trust and Savings Bank

,

York, N. Y.

Robert B. Rivel

C. J. Devine & Co.

37 ogives

offered

were

Discount Corp. of New York
New

Hardin H. Hawes

intervals

frequent

at

Boston, Mass.
Herbert N. Repp

Company

12 month

three, six and

maturities

biliion of pub¬

$43

over

Francisco, Calif.

Trust

Sumner Pruyne
The First National Bank

Alfred H. Hauser

Stewart A. Dunn

senting

L.

Wells Fargo Bank

San

commend

we

The Atlantic National Bank

the debt structure in 1963, 15 dif¬

issues

different

certainly

of the

role

the

of

segment

Indeed

security dealer in the secondary

have been sold.

years

large

a

the

rows

new

some

For example the way

problems.

long bond market than the

the

Furthermore

of

'■

Robert B. Blyth, Chairman

that

job

.

the

of

creation

the

for

less significant factor

a

cer¬

effort being
is itself partly responsible

magnitude

same

the

Lester H. Empey

way

Respectfully submitted,

results

of

done.

be

must

$6 billion in this

maturity range in the

same

nature

no

GOVERNMENTAL SECURITIES

to illustrate the con¬

serve

tinuing

in

improve the debt structure.

improve the

the

is

anything that has

receptiveness W. Wayne Glover
>
to new ideas and the strong pur¬
United California Bank
pose it has displayed in its efforts
Los Angeles, Calif.

Created

made to

structure

tainly

with

compared

being

debt

done.

them

of

the Treasury for its

to

operations.

fort

with

1968 amounted

billion

$1,088

in

been

29

on

criticism

a

Considering the very strong ef¬

mar¬

securities

of

maturities beyond
to

issued

been

New Problems

the first

eight months of 1963 official
ket

had

debt

comment

As recently as

only $1.3 billion of such se¬

curities

October,

1963, 33% of all outstanding mar¬

ma¬

years

five

over

the

noted that at the end of

with

securities

have been issued.
1957

in

$15 Billion of U. S.

over

Government

tool

important

In all

of interest rates.

what an

illustrate

To

advance re¬
funding technique is, it should be

be¬

determinant

major

a

course

1963,

themselves

from

The Commercial and Financial Chronicle

.

.

holdings.

prevented technical conditions in
the

.

the

in

of their daily

developing problems

are

careful

need

ordinary

business.

study

and our

more than

1,000,000

advertisements have been
II

prepared by
Albert Frank-Guenther Law, inc.
i

To

W

Coast-to-Coast
•

1;

Underwriters

Municipal

and

Stocks

of

and

in

Correspondent Network

Corporate Securities

Bonds

Revenue
Bonds

Markets

Comprehensive

•

in

Underwriters of State,

•

Complete

•

300

over

Brokerage

Research

Unlisted

ll
M

Service

Securities

Si-

Midwest

•,

Exchange

Telephone WHitehall 3-7600
'

'

'

Cable

•

Address:

Anaheim

Albuquerque

Municipal Teletype: 212 571-1741 /'

■

GREGSONS

Columbus

Cleveland

Grand Rapids

Angeles

New Orleans

Pikesville, Md.
Redlands, Cal.
San

Asheville

Antonio

,

Harrisburg

Houston

Pittsburgh
Reno

San Diego

Boston
Clearwater
'

I

Kansas City

7,

/• '7'

7

in finding the kind of oorporate

have in mind,

we

have reproduced

some

Corporate and Municipal Offerings,
many

.without obligation, simply write on

letterhead to Quentin Smith,

others. For

your

business

77" 777.

Albert Frank-Guenther Law, inc.
Advertising. Public Relations • 131 Cedar Street, New York6, N.Y.,COrtlandt 7-5060

Is

Phoenix

Joplin

Potsdam

Santa

/
7

Rapid City, S. Dak.
Salt Lake City

I

177

AF-GL

'

NEW YORK

,

BOSTON

I

St. Louis

Francisco

•/

Reports, Institutional Advertising and

I!

Nashville

Rome, N. Y.

.7 •'

ii

Philadelphia

Portland, Ore.

./•

Mid-Town Office: 44 East 53rd Street, New York 22, N. Y.

Fullerton

Mt. Clemens, Mich.
'

'77v

samples of frequently required financial and

Des Moines

Denver

Indianapolis

Oxnard

San

cities:

Fayetteville, Ark.

Minneapolis

Oklahoma City

following

Bismarck

Dallas

_

m

I

the

Cincinnati

/Chicago

Corpus Christi

Malone

in

Baltimore

Farmington, N.M".

El Paso

Detroit

/

Correspondents

to

Charlottesville

Burlington

Los

direct wires

money

'..

8

SiS
have

We

time and

Formation of New Firms,

your copy.,
i!

■40

Trading Teletype: 212 571-1740

;

general ads—Admission of Partners, Change of Firm Name,

American Stock Exchange

Stock

you

.-''v

advertisements you

Annual

Members

York Stock Exchange

..-'7 77-

and it includes
II

New

save

7

of these advertisements in this book. It is called "F.Y.I."...

Primary

•

77:t77

Ana

Santa

Fe

PHILADELPHIA

CHICAGO

-

SAN FRANCISCO
"

Scottsdale, Ariz

Seattle

Utica




Toronto

Traverse City,

Mich.

Tulsa

7

.

'

LOS ANGELES

30

The Commercial and Financial Chronicle

bonds

Report of Subcommittee
On Municipal Trading and

pleased

are

to

report

on

several subjects which have been

brought to

the

Subcommittee

attention
since

the

Spring

in

trading

Pursuant

1

bonds

Complete Description of Purpose
of Municipal Bonds

We recommend that all

to

as

of

cluded

the

the

pertinent

of

purpose

an

in¬

be

tion Bonds

Section

official

bonds

of

these

Government

the

Law

American

Bar

fully

coupon

the

or

which

local
Joseph Vostal

and

improvement"
are

being issued for
not

they

purposes

that

generally popular, such

marina, swimming pool
contrasted

golf

or

with

as

water,

fire protection or streets. The pur¬

issue

an

important

it is

groups

support

of the

is

at

times

consideration

pricing. Bond

in

certificates

an

the

should

state the purpose or purposes for

they

issued.

were

would

avoid

This

misunder¬

The

IBA sponsor

practice

registered

issuing

of

corporate

purchasers, unless

bonds

are

momentum.

indication

management
method

to

coupon

specifically requested,

gaining

further

fully

bonds

initial

is

this

for

Y,

of

is

that

There

on

bonds

however,

that

might

porations
make

no

in

the

charge

United
or

the

trar

might

not

advantages
the

to

accrue

borrowers to whom

cor¬

States

have waived

good delivery until appropriate¬

practical

be

to

were

the

use

cessibility

Inasmuch

charges

on

exchanging registered

efficiency

and

of

are

express

registration, this is

or

that

issue

New

totals

year,

be

cannot

$9

a

billion

This

opinions

this

under

should

47.6%

and number

$10 million and

of

this

5,375. Issues

The

128.,

of the

V
delivery

would

bond

buying of munic¬

ipal bonds today is by the large

presentation

institutional investors. It may not

the

any

in

should

such

a

be

way

will determine whether it wants

a

fully

a

registered

offering

or

agent

paying

stitution of
It

is

a

trustee.

or

the

that

coupon or a

is

only

recently

custom of the
was

of

combination of both.

that

with

mutilation,

of

broken by the issuance of the

judgment."

therefore,

that

$5,000 bond. Today, it is accepted

studied bv

a

of

question.

custom, there

addition

In

also

are

legal

to
re¬

members

Trading
out

bonds

problems

and

become

attendant

quired in

Subcommittee

and

the

in

list of standards,

at

that

not

to

be

Sub¬

to

the

New

and

There is

A

ards

for

uniformity of stand¬

no

condition

for

coupons

of

is

a

the requirements for
of

bonds

payment

for

of

bonds

acceptance

delivery. There

Revenue Bonds

y..—

Good Delivery of Mutilated Bonds

the
;

PRIVATE

as

and

good

variation

in

acceptability

redemption

funds

as

WIRES

or

paying

Savings Bank

;;v

..

.,

>'/.

New

New

York, N. Y.

Louis A. Hauptfleish

Goldman, Sachs & Co.
New

York

York, N. Y.

J. J.

.

Kenny Co., Inc.

New York, N. Y.
Arnold Kocurek, Sr.

Rauscher, Pierce & Co., Inc.
San

Antonio, Texas

William Noonan, Jr.
Continental Illinois National
Bank

& Trust

Co.

Chicago, 111.

V

Y

Lawrence H. Prager

study of

''YYV-v

;

John J. Kenny

America, N. T. & S. A.

Francisco, Calif.

Claude C. Richards
R. H. Moulton &
Los

question has been submitted

Company

Angeles, Calif.

Franklin R. Saul

regarding the pricing of the New

First National City Bank

Housing Authority Bonds

New York, N. Y.

in

secondary

the
a

selling

J. F. Vandernoot
R.

premium. The example: New

York

City P.H.A. 3%'s of 1-1-83,

callable,
The

market,

are

offered

approximate

this basis to

at

dollar

1-1-83

is

3.05%.

price

106.49.

at

The

W. Pressprich & Co.

New

York, N. Y;

Robert S. Weeks, Jr.
;

F. S. Moseley & Co.
Boston, Mass.

TO

J. H. Hilsman &

Co., Inc.

Atlanta

Taylor, Rogers & Tracy, Inc.
Chicago
Ball, Burge & Kraus
Cleveland

Bache &Co.
;

Founded 1879

,

Underwriters and Distributors
/

G. A.Saxton& Co., Inc.
Member. New York

Teletype 212 571-0232

Dallas

&

Company, Inc.

Denver

Underwood, Neuhaus & Co.
Houston

Members All Leading Stock and Commodity Exchanges

52 Wall St., New York 5, N. Y.

Crowell, Weedon & Co.
36 WALL STREET, NEW YORK 5, N. Y.
'

Tel:

(212) 797-3460

TWX: 212 571-1155
Offices throughout the United States, Canada and abroad.




Stock Exchange

Schneider, Bernet & Hickman, Inc.
Bosworth, Sullivan

Los

WHitehall 4-4970

Angeles

Hess, Grant &

Remington, Inc.
Philadelphia

Trading Markets in

Reinholdt & Gardner
St. Louis

Stewart, Eubanks, Meyerson & Co.
San

Francisco

Public

r

York, N. Y.

Public

at

•'

W. Neal Fulkerson

Price of Callable Bonds
in

'■

Equitable Securities Corp.

San

:

PROCEDURES

Frank E. Carter

IV

■

Trust

Bank of

Y'Y'Y

V

,

York, N. Y.

recently has initiated
mutilation.

Y

'

SUBCOMMITTEE ON

Clearing House Committee which

state this year.

Prin¬

of

York, N. Y.

New

standards

a

by the IBA

Recommenda¬

on

Computation

thereto).

Harris

necessarily be all in¬

with

accord

William J. Dumper

clusive. It may also be feasible t6

cooperate

in

and Interest effective 1-1-62

New

work

recognizing

would

California

passed

was

a

Subcommittee

is

Joseph Vostal, Chairman

Cashiering and

the possibility that the

result the necessary

as a

legislation

Municipal

for

^CASHIERING

matter

Liaison

re¬

Group of the IBA have been
work and

the

ac¬

nationally

states. The Liaison

many

of

V

-

conclusion

MUNICIPAL TRADING AND ^

committee composed

committee and the

quirements to be met before fully

a

some

Bankers Trust Company

subject

this

on

Respectfully submitted,

recommend,

We

agreement

basis by the buyer and the

IBA

degree

jrespect

delivery or payment, is

the

$1,000 denomination

the

(page 7—Callable Bonds and the
note

obligation.

new

evident

than

exercised, unless there

and the booklet

there

where

case

less

with recommendations

to

In
is a real
offered for sale question, the obligation should be
that the market presented for validation or sub¬
Perhaps the

way.

be

This

on

redemption

for

not

Kidder, Peabody & Co.

honored

be

call¬

on

that the purchaser

mutual

other

;-

factor in each
is whether the

significant

of

case

Much

much

too

without

pass

question.

number

over

is

the buyer
obligation which

is entitled to an

is

receive

is,

to whether an

as

buyer

manner

should

of the buyer. They feel

through

October. Issues of $10 million and
constitute

the

on

this

of

the

Subcommittee unanimous¬

a

when tions
members. cipal

ruling

bonds

that

yield indicated if the call feature

might make it so. Their consider¬
ation of mutilation leans in favor

regarded

volume

listed

so

seller. "

good delivery on

to

as

points better than

able bonds should be computed in
such

obligation might be considered a
good delivery or suggest
what

paramount importance to a quick

issue

This

requested, binding upon
On unlisted securities, they will

ac¬

cepted. Legislation would be

State

call

approxi¬

ly agrees that the yield

Stock Exchange

securities

Exchange.

as

as

rule

will
those

registrar, there might be delay in
conversion.

paying agent."

or

The New York

or

local' agent

by the trustee,

authenticated

registered

standings and facilitate identifica¬

is

protected.

would

states—

rule

basis

quality

maturity,

border

N.A.S.D.

15

or

equal

set of rules which would

a

registrar

small

large regis¬

a

economical. If the small borrower

the

punched,

without

Over 30 of the largest

10

mutilation

constitutes

"Mutilated securities shall not be

fine job for the

a

ly

this
with

favor and that it will continue to
grow.

such wide variations

are

The

would

tion,

It

looking

issuing

104

mately 2.74%. No mention is made

is

corporate

first

the

to

at

paying

always be that

legislation

106.49

1-1-68

in

assured

been

have

We

what

write

a

required, and that

purpose.

when

purpose"

are

as

legislation for those states

proper

There

in

(holes

registrars

continue to do

of

law

at

date

Department of the same in¬

major

by

large issuers. We seriously ques¬

lightly.

that

model

a

yield

Corporate

the

and

apply to all conditions.

volume

of

privi¬

registered.

Experienced

point

recommend

as

"various

fully

transfer

and

conversion

and

of them appear insurmount¬

none

preparation

"general

which

We

are

advertised

practice

Local

be

Liaison Subcommittee support the

in

of

submit

registered bonds instead of

sometimes

pose

sufficient.

We endorse the issuance of

transactions

course

not

II

when possible.

a

Pub¬

as

Fully Registered Bonds

all

Bonds

is

or

in all circulars

or

the

sale

in

A

Association.

by the issuer,
and

described.

so

Subcommittee

son

and

of

obligation

recommendations to the M.F.O.A.

,

of

statement

municipal

further recommend that the Liai¬

in

notice

all

description of such bonds

the

bonds

years

also strongly

general

should be

description
the

that

aid

Thursday, December 26, 1963

between the Clearance

as

stitution.

with

issues

issue. One large casualty company

foregoing

we

.

missing,
The acceptance of the registered signature missing, signature not
bond is gradual.
The advantages legible, number missing, scorching,
of
registered bonds are many. etc.) that it does not seem ad¬
There are also disadvantages, but visable at present to attempt to

lic Improvement General Obliga¬

municipal bonds

in

the

larger

able.

the

recommendation,
industrial

details

to

recommend

yyK,.

in

Trust

in the

field,

.

the offering that the yield to
agents
that call is less than the offering yield
leges, the number of bonds regis¬ mutilated coupons, when attached to maturity of 3.05%. Apparently,
tered at the time of initial delivery to the bond, are routinely vali¬ the question stems from the fact
that the 2.74% yield to 1-1-68 is
is
becoming greater with each dated by the paying agent.

can

following issuance.

of this

Meeting:

issue

tion

agents,

will buy only those issues which

Chairman

oj the Subcommittee on Municipal
Trading and Cashiering Procedures, Joseph Vostal,
Partner, Kidder, Pedbody & Co., New York City,
reported to the Convention as follows:
We

the

or

Department

municipal
the

of

registered

Cashiering Procedures

bonds

coupon

Y'<

the

In
case

As

for

reverse.

.

Utility, Natural Gas and Industrial Securities

Volume

Number

198

6328

.

.

The Commercial and Financial Chronicle

.

farmers

Report of Public Utility

to

31

make

This

Securities Committee

new

the

we

given

a saw

potato

for

year

electric utility industry.
tric

it

again proved

eventful

an

the

The elec¬

and

the

It

dis-

gas

:

per

that

It

re¬

interest

rate

as

Government has to pay

the

many
we

have

interest

e xon

pressed

over

rapid

of

made

1963

attacks

many

owned

has

industry.

has

munications

'

to

of the IBA.

the

One

Your

—

Or

There?"

Is

communication,

1963,

dated

the

requested

for Senate Bill

The

introduced
himself and

Mr.

Bennett.

for
is

'

',

;>

the

of

to

kilowatt
station

in Western

Colorado.

The
a

them

primary

electric operatives,

steam

cies

Hayden

near

'

'

of

purpose

,

such

large power plant, which would

to

Attack

activities.

is

tivity

a

not

this

Today

only

is'

District

rapidly

ac¬

Salt

to the

not

It

to

the

amend

REA

Act

of

1936, as amended, to make more

made

loans

on

as

months

ago

speech
only
in Los Angeles.

two

;

This

Bill

can

dollars in taxes.

save

Section

Completed
millions

of

It is time for

stantially finished.

5

co-op

eligible

an

parts

serves

and

procedures.

ernment

to

made

been

ances

and

15.6

built

electricity at
cluding

taxes,

our

of

cost—in¬

an average

Federal,

state

power

produce

can

and

local

taxes—in the range of six to seven

mills

have

per

than

and

half

power as

rep¬

tary

gov¬

owned

councils

modern

today

of

kilowatt
the

hour,

cost

of

or

less

Quoddy

projected by the,Secre¬

the

Interior.

utilities

If

Continued

to

investor

enjoyed

the

on

page

tax

84

the

"ALL MARKETS ON ONE CALL"

used

by

COMPLETE

of

the

BROKERAGE

Ute's

SERVICE

FOR

..

'

DEALERS,

BROKERS

AND

DEALER

BANKS

costs.

proposed

transmission
systems should have nation-wide
well

as

and

plant

as

area-wide implications.

appli¬ Because the Salt River District is

plumbing

city

of

REA

of

members are both adequate

Hayden

wiring,

finance

sources

Construction

the

of

from

large-size

plant

agen¬

We

levels

cost

average

an

a

of $36,872,-

Impact of Tax Avoidance
A

preference,

resentatives at all

kilowatt

to produce

cost
or

co¬

subsidies, Federal

obligation to inform

million

2.363

electricity annually at

mills per kilowatt hour.

us

electric

of

salable

develop¬

prosperous

available at reasonable

and

J*rl3ie IfcEA Act have

electrical

REA's job is sub¬

provisions

under

made

REA's Job Virtually

total

the

Quoddy

suburbs.

existing

Up to this time low-cost loans
Act.

of money,

fields

un¬

Although

the

under

the

regulative

well.

acceptance

modify the provisions of interest
rates

dustry

investor-owned

money

eco¬

between

and

the

at
of

reforms

Federal power

in

of
bil¬

which

taxpayers'

the

of

ment

intent

unfair

influence

the loan has been
It was gratifying granted by the REA, subsequent
specific the purpose for which to see the new President of the appraisal of Colorado-Ute's cost
loans may be made under Sec¬ American Gas Association dedi¬ analysis and other pertinent data
tions 2 and 4 of the Act, and to cate himself to this threat in his on the Hayden plant indicate that
bill

needed

correct

a

Salt River Power

growing

Phoenix

attacking the

industry but the gas in¬

electric

power

cost

District in Arizona,

Power

borrower.

cally called your attention to the
REA's

provide

700 miles away.

report, we specifi¬

1961

$120 million, would

and

utilities,

monstrosity

forecasts

000,

encourage

This is

a

hours

re¬

it is imperative for

pro¬

approval

output

Act.

differences

of

far

original

nomic

be

our

the

will

Association

cost around

In

the

from

We feel

must note the cur¬

the

President

to

evident, however, that REA is
ways

the In¬

Passama¬

Secretary Udall's report to the

remarkable

a

ex¬

totally unnecessary and
justified project.
on

co¬

electricity

which

River

was

done

bringing

Montrose,

Repre¬

or

write

Gas Industry Also Under

House

It

in

proposal of the Colorado-Ute

H.R.9861.

Oct.

Lausche

Mr.

by

and

now
,i-

Senate Bill S.1926 and House Bill

member¬

former

The

is

have
a
generating
They need your advice and eventually
support. Write to them to support capacity of 600,000 kilowats and

them to vote

S.1926

H.R.7861.

Senator

is

granted

win

lion-dollar

nearly every farm in the U. S. It

now.

ship to contact its Representatives
and Senators to urge

loan has been

of

devel¬

the American taxpayer;

would waste the

utilities have

and

the

at

President Kennedy.

intent

Together the rural electric

power

Department's

posal

is

program

the

REA's

quoddy Tidal Power Plant

facilities.

to

the

subsidized

terior

are

of the Act.

Alabama job

the

generating

please

—

completely foreign

autho¬

The year 1963 has seen

to tie in with

REA

Colorado, to build an unnecessary

f>

your

sentative

18, 1963, titled, "There's No Stop¬
EEA

to

note

reprint of

a

the Congressional Record of Feb.

of the

moved

150,000

REA

with

of

expansion
power

The Passamaquoddy Project

clear

operatives and the investor-owned

adjudication

Electric

have not already sent a

If you

membership

was

."

.

com¬

by

being expanded in

rent

receiving central station

not

This

use

and

we

are

we

government projects which

opments

transmis¬

power

re¬

Cooperative proposed

This year we

of furnishing electric en¬

service.

two

sent

are

as

Federal

4%

a

electrically-

of

courts.

except to sup¬

to persons in rural areas who

ergy

investor-

financed

lines

other

and

its

except

.

.

purpose

witnessed

the

on

utility

Committee

other

.

plants

power

con¬

It

case.

increasingly

with

with public

pense of

isolated

an

Cooperative being so located

attention

This

not

national

desires

Again

actually public

are

prefer¬

users.

becoming

that

Basin

by the state finance director, and

"No loan shall be
for the sole

ply electricity.

Milton F. Lewis

power.

year

ping

any use

Electric

is

replacement elec¬

as

Upper

power

This

is

is going

REA

report of 1962 we called

our

loan.

payable by the U. S. A.

for

ence

for

the

our

interest.

an

rities

tricity

gravel

a

resort customer at

your

have

Canyon

other

the

to

as

cerning those issues in which

proposed

from

Colorado

ern

washing operation.

purchase

Electric

stops the REA from loaning

money

de¬

velopment

public
The

to

our

concern

and

seed

ski slope.

a

In

by insert¬

its marketable securities."

It

the

for

S.

U.

equal to the average rate of

rate

hard-'

commercial

the operated snow-making equipment

pay

ing "and shall bear interest at a

years,

Bill

creational

/

For

9,

REA's

the

retail

and

Elizabeth, Illinois, which loaned

for

Glen

River

Hayden plant in northeast¬

power

REA

commercial

a

$30,000 borrowed at 2%, to

centum

per

the

housing devel¬

by the recent action, of the sion

Jo-Carroll
in

by

coopera¬

making 2% REA loans is typi¬

fied

amended

of 2

rate

makes

same

the

in

annum.'"

out¬

standing

"is

Act

The

at

est

again

sults.

the

up

striking out 'and shall bear inter¬

companies
shown

helping pile

Project's

legislatures to

Congress,

concerned

a

a

and

Colorado

sell

TVA,

How far afield the

stops the 2% interest rate for

REA's.

tributing
have

stop bleeding the taxpayer,

soaring national debt.

utility industry, the telephone

industry

to

—and to stop

Storage

the

state

have

Reclamation

River. The Bureau will then take

business

crushing
has

1963

year

be

to

from

power

intent that

of

Dam in northern Arizona to Salt

mill,

seed-cleaning

store,

so

it is planned to

electric

finance

ware

has

plant,

Bureau

REA loans being

rural

to

opment,

Lewis, Vice-President, A. G. Becker &

Co., Inc., New York City, presented the following
Report of the Public Utilities Securities Committee,
of which he was Chairman.
The

2%

see

now

criterion

original

tives to

F.

den

the

changed

Milton

electric

of

use

service.

located

and equipment to encourage

700

PUBLIC

UTILITY, INDUSTRIAL,

RAILROAD,

miles from the Hay¬
CONVERTIBLE AND

FOREIGN

BONDS

'

*

*
I

-

MUNICIPAL, STATE AND REVENUE BONDS

*

*

HAYDEN, STONE & CO.

☆

☆

☆

*

*

/V

INCORPORATED

I;

FEDERAL FUNDS

Established 1892

•

Members New York Stock Exchange

*

*

Underwriters and Distributors of

☆

*

i.

«',

•

rr. \

'

'.v..-.

••

>-

'■

' •

v;-

;

''

■'

-

Brokers and Dealers in Securities and

BOSTON

NEW YORK

CINCINNATI

CHICAGO

■

*
•

,

;

.

☆

☆

☆

*

*

'

Commodities

*

LOS ANGELES» JACKSONVILLE

*

MABON & CD
''

ESTABLISHED 1092

Domestic Offices

*

UNLISTED

*

State, Municipal and Special Revenue Bonds
...

/

COMMON STOCKS

PREFERRED AND

'•

.

☆

LISTED AND

Corporation Bonds and Stocks
>

☆

'

'

■

,

i
MEMBERS

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Chronicle

The Commercial and Financial

32

.

.

Thursday, December 26, 1963

.

securities are held rities business for all the reasons
this was brought about in 1933.

whose

demptions of mutual funds during

Report of IBA Investment

panies

periods of market uncertainty.

in the bank collective fund port¬

folio;
Securities Business?

Banks in the

Companies Committee

Thirty

conditions
to

R.

Herbert

Anderson,

President

of Distributors
Group, Incorporated, New York City, again was
Chairman of the Investment Companies Committee.
Its Report is given below in full text.

,

been

has

providing for the regulation of the

the past 18

there

been

an

better

a

understanding

investor"

has

mutual

of

been

York Stock

an

In

Exchange

fairly

both sides, he was a

prices

proportions; a

York

rather

7 months of 1962

rapid,

although quite

on

($3,182 billion of

versus

$2,860 billion of
Thereafter,
balance

has

August

business

so-called

the

of

and

securities

the

of

Wharton

Report.

high in market

new

net—in odd lots. "

This contrasts rather

the

interesting—but

are

them

interpretation of
because
with

some

is

an

vital—

dealing here

their results,

with

people, with

and with their reac¬

tion to these events in relation to
various

the

forms

of

investment

same

lower

14-month

sales

gross

period, despite
somewhat

and

of mutual funds through Sept.
of this year are

nual rate of

substantial

running at

30

an an¬

$2.4 billion—a rather

amount, but off about

1962 level.

$300 million from the

Redemptions look like they may be

about $370 million for the year*

estimated $1.5
billion—although, as a proportion
a new

high, at

an

assets, this is actually well with¬

in the range
because

of the past'10

assets

also

at

are

years
a

son

corporate financing by rea¬

of this dual

other

interest; and

as

further

was

to

New

problems arising from an ex¬

the

Lehman Brothers-One William

the Comptroller

the first time since 1933

purported

to allow banks to operate and

that

In plain terms,

accounts.

other

Two

aspects of this rela¬

and mutual fund sales and redemp¬
tions appear

relative

significant. The first,

investor

to

purchases

of

is that during this
a

quite

constant ratio to purchases of odd

lots,

a

increasing

actually

from

61.4%

slightly

figure of 59.3% in 1962 to
for

first

the

months

9

of

The other factor that stands

1963.

York, N. Y.

Hunter Breckenridge

enter

to be allowed to

McCourtney-Breckenridge

business, they should

and disclosure

St.

securities laws,

but

believes that

tee

Louis, Mo.

requirements of the
Henry F. Cate, Jr.

commit¬

your

this is

even

The Keystone Company

sec¬

Boston, Mass.

'

■

Robert E. Clark

necessity of the continued divorce¬

Calvin Bullock, Ltd.

ment of the banks from the secu-

New

York, N. Y.

the equivalent of a mu¬

means

tual fund that could be offered by

APPENDII

banks to virtually any type of in¬

Currently bills

vestment account.

Odd-Lot

(S-2223 and HR-8499) have been
introduced

into

Were this

not

legislation to

an

1962

opinion
would

of

would

be

bad

363,691
377,206
396,229
639,756

Mar.

Apr.

372,163
366,649
596,356

288,889
260,123

99,043

292,345

121,673

218,621
206,581
154,769
133,654
156,689

107,009
/ 73,524
78,529
82,686
91,717
89,225

June

503,127

452,539

July

■7336,069
287,008

282,167

securities

the

for

Aug.
Sept.

be in the' retail securities
same

294,299
271,425
314,338
352,391

286,660
298,796

Dec.

255.166

business,

standards

'

243,027

Oct.

generally.

under the

271,351

it

banks,

$ 99,960
83,418

$ 361,846

342,245

this

the

May-

Were banks to be authorized to

even

-

the

Nov.

the public

$ 447,700

In

laws.

for

bad

$ 515,993

committee,

your

be

Jan.

Feb.

exemption from the

securities

Redemptions

(000's]

banks

pass,

only would be free to return

federal

Sales#

Sales

(OQO's)

authorization.

would confirm this

Mutual Fund*

(N,Y?S.E.)

Purchases

which

Congress

91,274

162,879
191.302

$4,552,728

$4,436,212

$ 374,003
277,179
249,398
374,083
345,777

$ 407,225

$ 234,595

328,216
304,116
440,669
412,584
355,638
314,789
356,821

104,637
$1,122,695

$2,699,049

165,935
200,267

as

the

broker/dealer, they would en¬

joy

an

unfair and improper com¬ 1963

petitive

They

position.

unique

have

a

position to grant,

cus¬
They are

credit. Now looked to

withhold,

or

quite largely

unbiased adviser in personal

as an

Jan.
Feb.

-r

Mar.

knOjWledge of their

tomers' available assets.
in

a

out, relative to redemptions, is that

financial

the liquidation of odd lots during
this period

Apr.
May
June

302,600
306,921
323,526
396,773
$2,950,260

July

Aug.

jeopardize that position and there¬

$ 116,4U
114,905
'

203,451

116,646
133,364

193,628
194,366
218,926

132,250
115,433

192,973

123,496
141,667
$1,117,692

123,517

by the public confidence in banks

to

almost 4

ume

has

from, about 3

run

times the

of mutual fund

which

would

seem

dollar vol¬

redemptions,

to

be of

par¬

new

matters,

themselves.

At

ther steps are

minimum

would

they

Sept.

205.855

453,242

$3,373,300

$1,810,49

time when fur¬

a

being taken to raise

standards

of

training,

^Member companies of Investment Company Institute
#Amount received by member companies, ex any sales charge

experience and other qualifica¬

ticular interest realtive to the old

high of about $25 billion. Never¬
theless, net sales will probably be
off this year by

about $650 million

"bogey

man"

dangerous

of

the

tions of all persons engaged in the
potentially sale of securities—actually through

"snowballing"

of

re-

Ratio Mutual Fund Sales
to Purchases

of

Odd-Lots

amendments to the Securities Acts

jointly sponsored by the industry

1962

and the SEC—bank

I

1963 (9 mo.)

personnel who

59.3%
61.4*

would offer these securities would
be

subject to

ifications.

be

to

no

standards

qual¬

or

Ratio Mutual Fund

Thus, this would seem

abandoning

to Sale

the principles

established thirty years ago while

providing
in

banks

sL,

mm

an

the

'"open

season"

Redemptions

of Odd-Lots '

1962
1963 (9 mo.)

for

offering and sale of

25.3*

33.1*

their commingled funds.
Points

Salient

Other
"

Let

Underwriters, Brokers and Dealers in

two

clear.

other

points be

made

First, it should not be
that

sumed

INDUSTRIAL

the

as¬

offering of these

Emanuel, Deetjen & Co

securities would be limited to the

larger banks in metropolitan
ters.

PUBLIC UTILITY

in

banks

virtually

community could, and prob¬

every

ably

would,

"in the

be

act".

BANK

be

collective funds would

these

competitive only with

tional mutual funds.

INSURANCE

MEMBERS

AND FOREIGN SECURITIES

conven¬

Particularly

lieve

is

dividual

Burnham
'
/

'

•

-

MEMBERS

NEW

•

'

YORK

and
•

'

AND

;

,

Company

many

AMERICAN

STOCK

issues

vestors in these
A.,-

'

•

persons

who

through

10004

TELETYPE 212-571-0791

A
120 Broadway
New York 5,

/

N. Y.

\I

72.
l)

Telephone:

funds,
raised

operational level of such

questions

make

as

Branch Office:
93

Spring St.

Newton, N.J.

coJ

commingled funds.

*

could

surely

be

AREA CODE 212 LOCAL. 344-1400




/-i

CORPORATE, MUNICIPAL & FOREIGN SECURITIES

broker/

EXCHANGES

STREET, NEW YORK, N. Y.

CABLE: COBURNHAM

-■

UNDERWRITERS—BROKERS—DEALERS

dealers would instead become in¬

At the
60 BROAD

•

Commodity Exchange, Inc.

only reasonable to be¬

that

otherwise would be buyers of in¬

'

.

Midwest Stock Exchange

with their depositors—or borrow¬

'

•

American Stock Exchange

in view of the banks' relationship

ers—it

'

v

New York Stock Exchange

In

addition, it should not be assumed
that

ESTABLISHED 1929

cen¬

Through their correspondent

relationships,

RAILROAD

&

Company
subject to all of the regulatory

offer ondary to the more fundamental

acollective fund for so-called
agency

are

New

the

contro¬

a

regulation which for

new

Dept.

"

the securities
be

Currency issued

versial

Act

Company

banks

York, N. Y.

Edward S. Amazeen

pansion of bank underwriting ac¬

It would appear clear that if

Groups-

Incorporated

investment

business and it would be bad for

period they have held in

First, to state the figures, sales

Investment

Earlier this year

tionship between odd lot volume

mutual funds,

available to them.

investors

sharply this under

higher redemptions.

abstract mechanism. We

concerned

are

not

are

we

Distributors

to the securities business but to do

by investors of $1,045,303,000 for

Behind the Figures

of

1962

with net purchases of mutual funds

Figures

to

in

through September 1963. Thus, we
arrive at this

/

on

from

month

every
Herbert R. Anderson

liquidated

results

study

up

the New

"people"
the release by the SEC of averages with
having
of a comprehensive liquidated a total of $628,776,000—

ages;

the

aver-

on

he

in

stock

volume

sales—see Appendix).

elective,

in

through full
as

1940.

using

Stock Exchange in the first

purchases

recovery

highs

the

in

the New

net buyer of

$322 million of odd lots

near-panic

new

on

as our meas¬

heavy

in stock

resulting

Herbert R. Anderson, Chairman

risk of biased advice in connection
with

COMPANIES

COMMITTEE

the

to

as

concerned, the pro¬

are

of

of

of
ure.

s

doing

funds,

transactions in odd lots

abrupt decline
of

pro¬

of fortified
through the later passage

results, let's turn to what the

outside

un¬

—

For

"small

"testing

period"

tection
these

has

usual

Insofar

companies

Odd-Lot Transactions

months, and well

might

this

for

investors

of

disclosure.

the

and

loans;

commercial

ing

from

banks

business, while also,

markets

Respectfully submitted,
INVESTMENT

with which the bank has outstand¬

tivities.

mutual fund sales and redemptions
over

divorcing

securities

the figures relating to

interest in

would like

us

duplicated, Congress passed

see

the securities

of to $700 million from recent peaks.

deal

great

a

of

none

legislation

tection
There

in response to

years ago,

to the risk of inappropri¬
companies

as

ate fund investments in

to pressures on banks

inappropriate loans to

to

com¬

Cable

Emanuel,
Viale

Deetjen
Maino,

Milan,

Italy

S.A.
21

Teletype: 212 571-1667

DIgby 9-0777
Address:

EMANSTOCK

Emanuel, Deetjen S.A.
10 Avenue

Lausanne,

de la Gare

Switzerland

Emanuel,

Deetjen Ltd.

Marlborough Court Patio
.'

Nassau,

Bahamas

;

Volume

Number 6328

198

.

.

The Commercial and Financial Chronicle

.

33

Report of Subcommittee

Harris, Upham & Co.
New York,

Committee, would make

nance

Howard B. Dean

N. Y.

no

Respectfully submitted,

change in the present tax immun¬

ity

of the

interest

state

on

IBA

and

municipal bonds. However, during
Henry Earle

On Municipal Liaison

First of Michigan Corporation

and

Finance

(of

Bond Sale Procedures

Eaton &

Howard, Incorporated

boston, Mass.

Craigie, Partner oj F. W. Craigie & Co,,
Richmond, Va., was Chairman of the Subcommittee
on
Municipal Liaison and Bond Sale Procedures,
and presented this Report:

Lord, Abbett & Co.
New

York, N. Y.

Representatives

Supervised Investors Services,

of

this

Subcom¬

mittee met with

representatives of

Inc.

the

Finance

Chicago, 111.

Association, the Local Government

Municipal

Officers

Section

Law

Ernest E. Keusch

York, N. Y.

ciation

Philip F. McLellan

the

Massachusetts Life Fund

York

Annual

would

the adoption of

encourage

legislation for this
taken

action

no

but has

purpose

be¬

draft

the

on

it has not yet been

approved

i

and

H

Bank of
San

whereby he

(including

the
i

Detroit

Robert L. Osgood

Boston, Mass.

in

to

at

Annual

discussed

tional

Convention at

New

December.

York, N. Y.

appreciation
of these

Arthur Wiesenberger &

of

again

are

and

on

Investment Bankers Association

interest

Washington, D. C.
Russell

a

above

comes

couple filing
entitled

be

$100,000
on

50% rate

$50,000.
a

the

to

40%

rate

and

the

Lloyd1 B. Hatcher

White, Weld & Co.

on

50%

all income above that

New

fig¬

also

and

house

bank

proposal

immediately

with municipal

made,

was

notified

Delmont K. Pfeffer

other

The First National

New

finance, including Walter

M.F.O.A., the Council

on

State

Association,

Association

the

New

of

has been taken

is

under

consideration

York, N. Y.

The Northern Trust Company

No action

Chicago, 111.

this proposal but

on

H. Steel

Philip W. K. Sweet, Jr.

County Officials and the National
Conference of Mayors.

George B. Wendt

by the / The First National Bank

Senate Finance Committee.

Chicago, 111.

exam¬

securities

in that recommend¬

we concur

Part

II

the

of

report

recom¬

mended specifications for

I

munici¬

Registered Bonds

Lewis J. Whitney, Jr.
The

Demspey-Tegeler & Co., Inc.

IBA

Committee

Angeles, Calif.

pal bonds. We believe that those
Securities recommendations should be with¬
its meeting at the held for further consideration be¬

Municipal
at

Annual

1962

Convention

"that

mended

recom¬

of

issuers

cause

large

theLith6j^aphersi& Printers

National Association is making or¬

amounts of

municipal bonds make

them

attractive to investors terfeiting of lithographed securi¬
(where permissible, ties more difficult and the success

more

ganized efforts to make the

practical, and subject to appropri¬
ate

f

of these efforts might affect
bearer recommendations.
freely interchangeable,

safeguards), that

bonds

are

registered

nation
It

sary

of

legislation would be neces¬

municipal bonds in registered form
or

conversion

the

bonds

to

of

the

ing

municipal

principal topics of discus¬

to

coupon

form.

and

at

the

The

This

study

a

IBA

Chairman of the Liaison Commit¬

by

of the American

sociation has drafted
among

Ames, Kidder, Peabody & Co.,
York;
David
J.
Harris, '
Bache & Co., Chicago
,

ize

the

an

Bar

interchange

of

Association

is

under

.-"'"..V"/

U. S.

IV
Tax

The
1963

Immunity

proposed

Revenue

Government,

^

Act

of

(H.R. 8363), which has passed

the House and is

coupon

and offers in

of the

Municipal Securities Commit¬

As¬

act which,

with the best bids

liaison

subcommittee

tee.'

other things, would author¬

bonds and

Bar

subject

tee of the Local Government Law

Section

community

at the M.F.O.A. meet¬

meeting.

registered form and re¬

conversion

New

investment

Refunding

sion at the meeting of the

authorize the issuance of committees

to

supply the

any

recognized that in some

was

states

Advance

denomi¬
The subject of advance refund¬
desired by the owner".
ing of municipal bonds was one

cipal and interest in

strive to

our

HI

to both prin¬

as

consistently

coupon

at the expense of the issuer, with
bonds

We

coun¬

by providing

■f

currently the sub¬

municipal and

ject of hearings by the Senate Fi¬

registered bonds with¬

other types

of

institutional

Bear, Stearns & Co.
Members New York Stock

securities

Exchange

CHICAGO

NEW YORK
One Wall Street

■

SALOMON

135 So. La Salle St.

Telephone: STate 3-0933

Telephone: DIgby 4-8500




City Bank

York, N. Y.

Drexel & Co.

Defense, the American Municipal

it

v

Kenower, MacArthur & Co.

in¬

personnel

responsible for the

this

principal organizations concerned
the

York, N. Y.

T. Norris Hitchman

Detroit, Mich.

When
we

Company

Philadelphia, Pa.

A married

joint return would

of income

Ergood, Jr.

&

Incorporated

all in¬

on

M.

Stroud

his first $50,000 of

on

ation.

municipal financing.

Company

York, N. Y.

toward

ination and handling of

cooperation
problems

the

for

organizations

generally

investment

who

our

along educa¬

directed

and

Hollywood, Fla. in

We express

further

for

guides for detection and

lines

vestors

Chicago irr August and at the IBA

of

Part I of that report

recommended efforts
Walter W. Craigie

Sub¬

referred

was

Subcommittee

this

consideration.

Meeting of the

Corporation

Arthur J. C. Underhlil

Procedures

counterfeiting

on

municipal obligations

Association in

National Securities & Research

report of the Trading

Cashiering

committee

American Bar

Henry J. Simonson, Jr.

a

n

and

the

Vance, Sanders & Company, Inc.

Convention

1962 Annual

IBA,

Meet-

of

g

40% rate

America, N. T. & S. A.

Francisco, Calif.

Gordon L. Calvert

^tate and municipal bonds)

income and

Counterfeiting of Municipal Bonds

and
n

June

/

Alan K. Browne

ure.

the

at

M.F.O.A.

Philadelphia, Pa.

/

a

rate

of the

Wellington Company, Inc.

Amyas

system

Craigie, Chairman

Craigie & Co. Inc.

Richmond, Va.

the

taxpayer to elect

a

incorhe

empt

This Committee

coupons.

At the

Walter L. Morgan

V'

F. W.

computing income taxes

alternate

from

Forum of New

Boston, Mass.

1 is!

Walter W.

to

would pay taxes on otherwise ex¬

ABA.

Municipal

Distributors, Inc. '

Los

proposed

streamline

and

method of

an

by the Liaison Committee of the

Bar Asso¬

can

out

cause

of the Ameri¬

W. E. Hutton &/Co.

New

simplify

has

and waive all deductions and pay

Paul A. Johnston

New

BOND SALE PROCEDURES

Committee Senator Long

Louisiana)

by permitting

Walter W.

Albert R. Hughes

H
MEMBERS

-

,
.

•

Geneva, Switzerland

NEW

BROTHERS
HUTZLER
YORK

STOCK

EXCHANGE

SIXTY*WALL STREET, NEW YORK 5

FOREIGN REPRESENTATIVES:

Amsterdam, Holland

ON

LIAISON AND

the current hearings by the Senate

Detroit, Mich.
Charlefe F. Eaton, Jr.

SUBCOMMITTEE

MUNICIPAL

NEW YORK

CHICAGO

j

HAn,over 2-8700
BOSTON

PHILADELPHIA

SAN FRANCISCO

DALLAS

CLEVELAND
PALM BEACH

34

The Commercial and Financial Chronicle

ment

Report of IBA Insurance
Davis,

been

to average

and

been able to avoid the sizable

on

six

months.

tiple peril package policy has re¬
sulted in rate concessions

coverage business.

magnitude

which have achieved

substantially

margins beyond the limits of

better

market

ceptability. It has been stated that

Insurance and Reliance Insurance,

to

important contributing factor both

increasing

values

casualty stocks

of

fire

than

average

fires in the United States

to

record high of $875 mil¬

new

a

13%

rose

lion in the

first

seven

months of

1963, stocks of

representa¬

a

and

rose

basis

second

for

hope

It has

creased

fire

losses

for

dends to stockholders

companies has been making solid

current dividend rate$

prospects., Home

progress in recent years

be

ratios.

expense

in reduc¬

A representa¬

to

expenses

written)

of 38.6%

in

premiums
1962, down

of

41.0%

in

during

fire
peril
policies. The predomi¬

specializing

in

lines, including multiple

-

companies

casualty

were

generally able to produce some¬
what better underwriting results
than

the

overall

property
and

companies

casualty

principal explanations have
a

certain

on

lines and

ministration.

spite of their
The first

reason seems

panies evidently accept the
weather

freak

tions accounted

for

1963.

to be that

investors in stocks of these

that

com¬

propo¬

condi¬

major part

a

sharp rise in fire and other

in

effi¬

insur¬

mass

Continued

of ad¬

progress

preliminary returns

for August of some companies sug¬

writing

turnaround in under¬

a

performance

be

may

in

the making as the weather moder¬
ates.

In

turned

writing
in

1961

1960,

Hurricane

Donna

otherwise good under¬

an

year

into

Hurricane

Carla

gives

Insurance

Market

Stimulant

even

During

pur¬

events

chased the fire and casualty busi¬
the

past

Thi$

year.

provides a broader base for fu¬
though ture growth. Reliance recently ac¬

higher ranking in import

a

investment results of most fire and

casualty insurance companies.
Since these companies carry

investments

market

their

their books

on

quotations,

this year's

book values and

dating
1962

values

market

liqui¬

substantially.

The

drop caused surplus

of the fire and

to

estimated

casualty companies

decline by about 6%

from the

beginning to the end of the

year

(the depreciation at mid-year

was

1963

has

much

more

last year's decline.

than

offset

In addition to

higher book and liquidating val¬
the

ues,

investment

side

of

the

loss.

surance

Merger Trend
The

fourth

major

why

reason

casualty insurance company stocks
than

their

to

seem

of

underwriting

records

justify is that the
in

this

field

Aetna Insurance

Connecticut

merger

has

level

of

net

pro¬

Company by

General

Life

investment

Insur¬

Company early in 1962

income.

For~th& pafcL fivet years*' the. aver¬

spoiled

age annual gain in the net invest-

was

major step in the combination

and

ance

as

was

the recent join¬

&

United States Fidelity

Guaranty Insurance

has

Company

acquired Merchants Fire As¬

surance

Company' and

Northern

Insurance has gone with

Casualty.

Maryland

The most recent major

development has been the

merger

announced

plan

of

Continental

American

Casualty

Reading.

Each

Company
of these

one

binations results in

stronger

creasing

com¬

in¬

company,

competitive

pressures

The

continuing relatively high
ratios

expense

underwriting
smaller

aging

and

offing.

together

many

with

an

supply

talent

combinations

of

suggests
are

the
ac¬

To

and

in the

Marine

Company is

to impossible

extent, the

some

an

casualty

continued.

and

companies has

far,

major life

no

has organized

company

casualty

So

and the

fire and

a

policies by

favorable positions are Fire¬

more

proach

Phoenix

Insurance.

training

Fireman's

tio

commendably in recent

and

should

this

process

volume

the

able

be

acquisition

been

of

the

range betterment

a

through

reduction.

underwriting

operations

on

but

in the open market and by reduc¬

1962,
the

As

expenses.

Phoenix
open

had

market

of

is

Dec.

purchased

37,600

31,

and by

June

30, 1963, the

total number of its shares held in
the

by

the

more

news¬

magazine advertising,

solicitation of stockholders.

Mutual

Fund

Package

policies

written

by U. S. Companies

year

in

force

for

the

at

Some

year.

beginning of the

of

the

size

greater

concentration

is

package

on

policies embracing most types of
which

the

either will need

or

individual

can

of

holders

combined

investment

Imposing underwriting prob¬ ments;

in

lems continue to face the fire and

are

casualty insurance companies. Au¬

functions

liability lines generally

remain unprofitable

or

only

mar¬

equity

an

states

licensed

for

the

and

some cases

is made in

and

a

mutual

operated by the

In¬

yet been found.

With

respect to

lished.

This type

of approach,

take

a

the

to

the

in

profit.

merger move¬

premiums
of

UNDERWRITERS, DISTRIBUTORS & DEALERS

pay¬

Industrial, Public Utility■&,Railroad
Securities

stock¬

acquired company

and

casualty

insurance

State & Municipal Bonds

company

'

Better Performers

Members
New

York

Stock

and

Some

Principal Security Exchanges




of

the

best

market

per¬

formers among the fire and casu¬

New York, N. Y. 10005
Telephone WHitehall 3-3300
Teletype: 212 571-0443

RUSS
San

BUILDING

Francisco

4,

-

Calif.

Telephone: GArfield 1-2850
Teletype: 415^393-8457

alty
1963

insurance
have

nantly

stocks

been

casualty

such

units

to

date

in

predomi¬
as

Aetna

Casualty & Surety Company, Ohio
1857

—

106 Years

—

Estabrook

Co.

&

Founded 1851

45 WALL STREET
Exchange

other

1963

dual
secu¬

rity selling. The equity investment
in

to operate its

stocks.

Established 1857

pay¬

salesmen

insurance

of

com¬

insur¬

periodical

some

now

of life

with

with

ginally profitable. The key to the fund created

has stimulated the market for fire

F. S. Smithers & Co.

with1

use

monthly payments. A further de¬

ance

tomobile

al¬

most twice the size of the average

panies, is the sale

Industry's Problems

last

were

Company's treasury had been velopment, mainly by small

increased to 42,500 shares.

of

television,

of

use

1,000,000 issued shares of its capi¬ insurance
On

dissolutions

evidenced

Ordinary

in

the

of

many

educational plans. Vis¬

and

paper

its

has

strengthening its position by
program of purchasing its shares

ing its

sales

Insur¬

been
a

and

expense

Phoenix

laws,

aggressive

this
has

in

planning, taxes, in¬

ible indication of the pressure for

basis for long-

still is well in the red

ance

ment

American

also

ap¬

intensive

partnerships by death apd retire¬

from

early

American

establishing

ratio

obtained

Company

Great

year.

heritance

years

jcontinue

with the help of the

increase

Insurance

to

requires

salesmen

of

estate

areas:

Fund has reduced its expense ra¬

professional

a more

which

example

may

ment, with its promise of the

and

and

Company with the Home

type of action which

ment

fire

split its stock

fire

causalty companies,

of the solution of the besic difficulties in insurance company, and in others
casualty business"'of this area of the business has not in an outside fund
already estab¬

underwriting business at

State, Municipal and Public Authority Bonds

in

The

industry.

J The reinsurance
and

Springfield Fire

a

of

insufficient

managerial

fire

unprofitable

records

units,

and

more

next

Securities

on

man's Fund, Great American and

>.■>

ing other groupings.

place when management finds it

and Railroad

place

issues

of tal stock.

larger and

a

surviving

Insurance

Industrial, Public Utility

Chicago

within the industry and stimulat¬

of

of

other

an ex¬

change of its shares for those of

surance

Underwriters and Distributors

Three

Insur¬

Fireman's Fund of San

Francisco.

that

rising

insurance

casualty company. Further, the life
which, for one reason or
favprable view of fire and'
companies are striving for larger
another, appear to be moving into

a more

top

steadily

significant

year

taken

quisition of life companies by fire

two-for-one this year.

investors currently may be taking

responsible

a

Company of

favorable terms and

fire and casualty business has been

for

this

have

organization of life companies by

a

ing of forces of American

The factor which is mentioned

,

conducted at

movement

Bull

'

Life Insurance

future

average

and

a

and

a poor* one

companies

than

underwriting operations have been quired Central Standard Life In¬

next few years.

Improvement in much greater). However, the stock
underwriting results in June and market improvement to date in

gests that

cas¬

by the imposition fected companies. The acquisition

claims this year.

July and in

dividend rates

underwriting stock market rally has benefited Casualty Company to offer

poor

records for the first half of

better

quisition of fire and casualty com¬
panies by life companies, the ac¬

ance

at

stocks

other

of

:

II

within

along this line is looked for in the

casualty insurance

of the

Increases

of economies in many areas

stock

company

tion

'

tolerated.

rine

number of fire and

a

bonuses to the stockholders of af¬

favorable attitude toward fire and

sition

nearly

tance is the favorable trend of the

ingness of investors to maintain

in

losses

as

more

in third place but which may de¬

put forth to explain the will¬

be

time

the

enabled

sion rates

serve

Four

levels.

un¬

insurance

Investors' Philosophy

but

life

movement

generally unsatis¬

were

long,

will

of Springfield Fire and Ma¬

vided and may continue to provide

ance

achieve

relief

ness

increase

but

insurers

factory.

been

to

by simplification of organizational

underwriting margins for

fire

all

appear

fact, the

set-ups, by reductions in commis¬

Shelby Cullom Davis

nantly

This

ciency have been achieved in part

those

insurance

homeowner

1958.

brought down to

normal

particularly

before

cure.

growth of investment income has

efficiency is expected to lay the

are

were

companies

in

derwriting profit margins

months of this

for

In

ratio

a

groundwork for solid gains in

the first six

rate

V

ualty insurance companies to raise

period.

bad

covered.

their

(under¬

average expense ratio

Underwriting

year

casu¬

investment

well

be

only out of management teams and both have
income, and the been involved in recent acquisi¬
them

percentage points from

results

taken

underwrit¬

on

needed

the

on

not

The hope is that steps to

percentage pay-out rate has aver¬
aged about 50% or less, so that

2.4

the

would

the

ing performance is that a major¬
ity of fire and casualty insurance

writing

during

ance

10-15%

by investors despite the fact that

alty insurance companies reported

bal¬

on

order of

ac¬

with this

wrong

they have felt the impact of in¬

underwriting results.

profit

business that rate increases

and

an

casualty

companies

nothing

shrink

underwriting results for long been the practice of fire and ing results. Perhaps the fact that lag in obtaining such increases
x\ casualty companies to pay divi¬ both these
companies have strong threatens to be longer than should

tive list of 33 stock fire and

tive list of fire

there is

Home

are

of which have been favored

net

ing

per¬

to

as

in the face of

even

of such

other fire and casualty companies

eventual betterment of underwrit¬

Although dollar losses caused by

Two

ment income may be considered

a

lines, the widespread

the companies with large fire and

formance to date in 1963

most

fire

adoption of the homeowner mul¬

extended

the rate

the first

the

un¬

derwriting losses experienced by

expected

9%, based

Thursday, December 26, 1963

.

companies.

many

A

1962 is

over

of gain for

poor

Insurance Stocks

fire

.

The steady compounding of an 8 %
to 9% annual rise in net invest¬

oj Shelby
Cullom Davis & Co., New York
City, presented to
the Convention the Report of the Insurance Securi¬
ties Committee, of which he was Chairman. The
Report follows:
/*
^
the year's

stock

approximately 8%. For 1963

the increase

Senior Partner

Review of Fire and Casualty

of

casualty insurance companies has

Securities Committee
Shelby Cullom

income

.

Casualty,

Pacific

United States

Company;

Indemnity

and

Fidelity & Guaranty

These companies have

80 Pine Street

r

New York 5
Hartford

•

15 State Street

Boston 9

-

Philadelphia

Middletown

•

•

Poughkeepsie

Providence

•

•

New Britain

Springfield

Members New York, American and Boston Stock

Exchanges

so

Volume

n.w

far,

has

made

198

Number 6328

greater

The Commercial and Financial Chronicle

progress

U.S.

35

is still

having

In

addition,

many

most life

or

announced

'

&>

Life

1000
Ordinary

lower

rates

than

during the past
The

ever.

must

be

premium

Premiums

Income

V

Ratio

Rate

Net

of

Holder

Disposable

"Clothed in Mystery"

•

Policy

Earned

to

Interest

Life

on

Expenses
Total

insurance

clothed

in

companies

mystery.

Invested

to

Rates

Funds

Income

$ 2,800

$ 1,900

4.8%

7.1%

5.05%

16.5%

publicized widely and have been

1931

2,800

1,600

5.7

7.4

4.93

14.9

used

which

1932

2,600

1,200

7.2

7.4

4.65

14.4

estimated

1933

2,400

1934

2,400 -

1935

1936

records

ous

established

to

the

of

older,

well-

company.

Shelby Cullom Davis, Chairman

companies have been

causes

tables

new

COMMITTEE

The marvel¬

Death

Income

1930

a

INSURANCE SECURITIES

are

Personal

Per

of

Respectfully submitted,

of

Operating

Family

V

Per

the unpredictable de-

on

velopment

Family

principal

mortality

new

A-

less

leading to this reduction in price
are

/

year

life insurance costs

now

of

Personal

Insurance

•

and

Ratio

Disposable

-

t

and

new

words

Factors

Profit

Factors

Economic

per

companies

further

added.

annuity, which
battle.

a

few

a

INSURANCE COMPANIES

LIFE

than the variable

exploit

New

ap¬

7,2

7.6

4.25

13.4

petite

1,300

6.7

7.8

3.92

13.9

combination of

2,400

1,400

6.3

7.7

3.70

14.0

from

2,500

1,600

5.5

7.9

3.71

13.8

1937

2,600

1,700

5.3

7.7

3.69

14,2

1938

2,600

1,600

5.7

7.4

3,59

13.9

multiple

1939

1,600

5.4

7.4

3.54

14,0

ordinary policyholder death rate

2,600

times

1940

2,700

1,700

5.1

7.4

3.45

13.9

has become

1941

2,800

2,100

4.3

7.1

3.42

14,0

1942

2,800

2,600

3.5

6.7

3.44

1943

3,000

2,900

3.3

7.1

3.33

7,7

3.23

7.9

3.11

13.7

by capable and experienced man¬
agers

lower

less

reserves,

operating

through

v

the

equipment,
from

since

and

earnings
The

reserves.

practically stationary

1949. The rate averaged

during

the

7.5

1,200

.

*

'
^

„

1930's,

1944

3,100

3,200

3.3

6.1 in the 1950's,

1945

3,200

3.4

in the first three years of

1946

3,200
3,600

in th 1940's,

7.0

electronic

greater

on

thousand

per

of

use

interest

mainly

expenses

.

3.5

6.7

2.93

15.7

3.6

6.3

2.88

17.0

3,800

3.5

6.3

2.96

17.0

trend has been in the percentage

1949

4,300

3,800

3.6

6.1

3,06

17.0

3.13

16.8

3.18

16.5

3.28

16.7
17.0

3.5

6.1

6.1

3.5

6.3

insurance

in

companies.

stock

In

in

of

in the

United

figure

the;insurance

5,300

4,600

the

1953

5,800

4,700

6.2

3.36

1954

6,300

4,800

3.7

6.1

3.46

17.1

in

6.0

3.51

16.9

vast majority may

5.8

3.63

17.2

■

3.6

in force

6,900

5,000

3.7

1956

7,600

5,300

3.7

States, in 1950 the

1957

32.7%, in 1955 the fig¬

was

1958

36.8%, in 1960 the figure

was

38.6%

was

40.0%.

and in 1962 the figure

/

>

,

.

3.75

5,500

3.8

5,600

3.8

5,900

3.9

1960

10,200

6,200

"

1961

10,800

6,300

11,400

6,500

Favorable

The

United

of

companies

Factors

as

have

doubled

about

sults

assets

factors

have

in¬

not

of

average

The

years.

the

and

17.7

4.22

17.3

17.1

the presently

to

in that year was

1961,

175%

and

the

4.8%

147% of dispos¬

171% fin

The

1962.

in

family

per

second

the ratio of

pre¬

disposable income,

was

in the

in 1930, rose to 7.2%

depression, dropped to 3.3% after
the advent of social security,
in

it

1962

has

risen

to

and

ing factor to profits has been the
rates during the last 25 years.

affectihg

operating

come,

since

had

in

little

It

1960,

factor

1%,

being

dropped

Vz% in 1947 and this

There

well

as

From

1850,

opportunity.

an

as

man's

The popula¬

advent

Trends

population

the
the

earth

on

world had grown to one

is greater than in 1930.

population

to

the

of

in 1930,

to.

life

to the

as

the

of

course

business.

Competition, in breadth of cover¬
age

and in price will be intensified

especially in the "one stop'' and
monthly payment credit insurance
policies.
of

life,

The

umbrella

automobile

and

middle

interest

has

is

income

advantage which

group.

plus

Com¬

indus¬

will

pursue

they

an

four

are

Girard Trust Corn Exchange

dif¬

as

Bank

The

Philadelphia, Pa.

com¬

Sanders &

finance

be

must

product

are

William F. Gliss, Jr.
John C. Legg &

in this busi¬

company

selling

New

sold

Company

York, N. Y.

Walter

are so

C. Gorey

'

Walter C. Gorey Co.

great that earnings cannot be re¬

San

successful sell¬

even

Company

Dallas, Texas

early

the

<

Robert R. Gilbert, Jr.

fieldv against

the

amounts of capital

a

'

'

Francisco, Calif.

Graham Jones

ing efforts for several years. The

Cooley & Company

risk

Hartford, Conn.

lies

in

great

too

placing

a

billion
re¬

rr

"one of the leaders

correspondingly

a

;

The public's interest in life in¬
stocks

surance

importance

to

began

about

In the field

attain

dozen

a

years

of

envy.

'

Because

more

underwriting, that's

middle

fear

of

to

and

new

the

After

with

50's

late

///'-

'

,

heavy
bill

tax

and

often today,

more

1959

quirements of American industry

passed, the interest resumed.

was

■

the

income
of

reputation to

a

then flagged in the period of

the

the capital

re¬

to staggering

run

The result of this interest in stock

a

and

of

amounts, present a challenge in financing that few

the part of the pub¬

on

lic

firms

growing tendency of

can

meet.

of managements to inform the pub¬

possess

lic about their companies has re¬

rather than

sulted

the size of

horizontally; they

are

in

the stocks

Prices

demands

for

For

one

thing, it takes capital to meet this chal¬

consequent higher

lenge—

Investor's

per
oc¬

an

and

prices for them.

declining but there is

are

increased

many

millions of dollars.

policies held than it is

to seek new customers,.

curring

ber

of

Schapiro & Co., Inc.

York, N. Y.

F. W. Elliott Farr

the

but

find it

established compa¬

to

ported from

greater problem for the industry

companies

companies

trial)

New

to keep pace.

expected mainly from taxes.

(ordinary

1975

becoming

ago,
sev-

education,

ings,

coverage

accideht and health,

residence is

field,

and the expenses of

cruitment and training of salesmen

unit

\

/

of

for

1985, five billion. The

to

rose

declined

and

timates
and for

future

fairly

industry

M. A.

two bil¬

was

in the

insurance

espe¬

billion, in

general

some

are

Robert H. Chaut

lion and in 1960 three billion: Es¬

increase finding it is cheaper to increase

16.5%

was

17.1% in 1962.
The

policies

about

was

lem

the policies.

developing business vertically

to total in¬

dropped to 13.4% in 1933,
17.7%

A

profits, the ratio

expenses

shown

1930.

tion explosion is bringing a prob¬

bination

drop of 19% in policyholder death

of

interest earned

on

of

1930

the

3.8%,

slightly above 1961. A contribut¬

factor

size

Future

be¬

economic

income;

economic factor;

miums to

In 1930 the dif¬

to less than
year

saving due to the greater

expense

years.

allowed

and

favorable in

impressions among people

changed

relation

personal

required

Insurance

between

ferential

re¬

,

1930, life insurance

able

more

profit

factors, since the available figures
of

Life

of

Boston, Mass. /

cost

companies

automobile

new

enter

4.11

ness.

steadily

come

sales written

and

produced these

adverse.

With

the

eleven

every

economic

investment

on

factors which

come

insurance in force,

admitted

come,

a

to

4.34

industry is

an

income,

would

years

past several decades. For the the last few

premium

as

States

continuing to follow the climb, of
last fifty years,

Institute

Source*

H. C. Wainwright & Co.

re¬

compete with the giants

nies. Large

Economic

growth

ficult to

6.2

3.84

Chicago, 111.
Sterling G. Carrington

personnel operating

specialized

pany

6.0

3.82

1963

/

those

of

trained

a

William Blair & Company

17.6

'

.

true

6.1

3.79

-

with

17.8

6.0

•

cially

17.9

3.96

6.0

9,500

8,300
'

3.85

6.1

8,800

1959'
was

will be

This

4,400

1945,

had

companies

30.3%

the

succeed.

4,100

1955

life

will

4,600

4,900

1952

■

Bowen Blair

acquire

at reasonable

business

good

financial

ample

and the ability to

1950

the

in

Nashville, Tenn.

arguments

companies. A few of

with

sources

Anderson, Jr.

Equitable Securities Corporation

forty

even

life companies organized

new

force

force

companies compared to the

mutual

ure

new

1951

life

stock

to
the

life

3,500

3.4

ten

been

of

3,400

of

from

/

York, N. Y.

William J.

price-earnings

the

4,100

"■

the

13.6

3,900

further

in

have

The First Boston Corporation
New

annually and

13.9

1948

A

to 20%

increase

an

The

eternal growth

an

purchase of the securities

1947

1960's.

10%

newer

for the

significant

and 6.1

the

for

issues.

York, N. Y.

William W. Amos

13.6

require

the

public's

the

Shelby Cullom Davis & Co.

offsetting factor of the

the

For

further need is
the actual

Problem

investor the
a

For

important

of knowing

way

V

port
UNDERWRITERS

after

earnings

soned

charging

to

in

business.

new

large and experienced staff

personnel to

might

operating expense the in¬

vestment

a

operating results of the

companies. The life companies re¬
current

another, the underwriting firm has to main-

tain

Until

arise

cope

—

enough

sea¬

with any' problem that

in its Buying,/Syndicate,

Department operations.

Sales

or

-

the amount of this charge or the
earned

amount

DEALERS

BROKERS

on

renewed busi¬

For

known, meaningful

made

is

ness

of

Over

three-quarters of

a century

of experience in underwrit¬

ing corporate and municipal securities with

eral

distribution

our

gress

the

correspondents.

months

Members New York Stock Exchange

'

NEW YORK
Baltimore, Md.

Dayton, O.

Bangor, Me.

Biddeford, Me.

Easton, Pa.

Easton, Md.

Lexington, Ky.

7

Mansfield, O.
W. E.

.

HUTTON

and other leading Exchanges

V

CINCINNATI

3oston, Mass.

Burlington, Vt., Columbus, O.

Hackensack, N. J.
Hartford, Conn.
Lewiston, Me.
Portland, Me. Washington, D. C. Wayne, N. J.

Philadelphia, Pa.
HUTTON

London




•

INTERNATIONAL INC.
Rome

*

Monte

Carlo

V

distribution,

proper

both the

coverage

Exchange Com¬

bill which would subject

a

insurance

ties

E

&

business

to

These

disclo¬

a

proved ability to

geographic and numerical sales

called for

on any

given issue.

■

&

of the

some
years

we

of

industry

ance

show

reasons

have

why we're pleased
to be reckoned

come

yet

forth

changing

above.; In
may

the

'

'

"
.

•

\

■

'

'

rS

' "

r

.

/

.

'

°

/.

life insur¬

the

and

that

"one of the leaders".

as

Exchange Act of 1934.
growth

which

facts

just

requirements of the Securi¬

The

not

are

that over,the

,
sure

W.

ensure

J

the chairman of

ago

Securities

third, it demands unusually extensive facili-

for

mission caused to be filed in Con¬

through the extensive organization of our own numerous
offices and those of

companies is not possible. Sev¬

the

a

ties

comparison of thq relative values

the

figures

trends

have

been

are

set

order that these

not be construed as a

recommendation for the purchase
of life insurance stocks

generally,

H MERRILL LYNCH,

PIERCE, FEIMNER &

MEMBERS NEW YORK STOCK EXCHANGE AND

,SMITH

INC

OTHER PRINCIPAL STOCK AND COMMODITY EXCHANGES

10 PINE STREET, NEW YORK 5, NEW YORK

The Commercial and Financial Chronicle

36

The

Report of the Municipal

outstanding national

coverage

another

was

next year. At

press

Pebble

of the

one

.

.

Thursday, December 26, 1963

.

their fall meeting at

Oscar M. Bergman

Allison-Williams Company

Beach, Calif, they unani¬

highlights of the Conference. All
of the

Conference Committee

large New York and Chica¬

newspapers
well

as

proud

of

^

follows:

of.

commercial

something all
John

Mr.

resolution

a

assistance

.need

Minneapolis, Minn.

au¬

Andrew D. Buchan

Bacon, Whipple & Co.
Chicago, 111.

from

We invite sugges¬

you.

tions from all of you.

Gordon L.

We hope the

better than the

Washington, D. C.

this year.

one

Harold W. Clark

complimented for this fine work.

Respectfully submitted,
The

IBA

ference
June

Second

Municipal Con¬

held

was

19-21,

in

1963

Chicago

thought.
Financial

tendance

Vas

all

from

resentatives

First

groups

Municipal

You

will

Conference,

that

the Conference

which

was

finahcial

make

avail¬

to

more

Russell M. Ergood, Jr.

where
next

this

Conference

the

plateau

am

the

under¬

From all

certain that those in
the entire pro¬

attendance found
gram

on

of

standing and thinking.
reports I

a

nually

(25% more sur¬

for

two

unanimously

country.

In

"Should

days?"

a

an¬

it

affirmative.

was

It

—

this

were

the

alsor;

majority

vast

operate

moved annually to various geo¬
basis, graphical locations throughout the
accomplished. country. In' general, we can re¬

was

on our program many

the

comments

notables highly enthusiastic and
lowing samples

of finance from both

messages were

that

port

most fortunate in hav¬

the field

in

that

self-supporting

fully

a

"This

whose

is

the

fol¬

typical:

were

excellent

an

were

and

in

not

tached

attendance,
as

there

Appendix A,

an

is

at¬

outline

Conference program.

the

of

[Ed.

I

being

Full

text

of

the

in

the

of

program

quite educational and most in-

,

1

"I

Arthur

E.

be

and

handled

well

of distinct benefit to

Boston

"Less

value

and

members

speeches

questions

exposure

of

to

profes¬

our

and

Chicago, 111.

in

Program

Chemical Bank New York

Ball, Burge & Kraus
City, N. Y.

arranged

and

.///

Heu> Tork Cotton Exchange

Exchange

Chicago Hoard of Trade

Commodity Exchange, Inc.

Chicago, 111.

48 COMMERCE

WALL STREET

111

AVENUE

JOHNSON

Riverdale

/

and for the

Tel. No. 617-423-4680

SPRINGFIELD

the

helpful

most

in

Floyd H. Beatty

Julien Collins & Company

A. G. Edwards & Sons

Allen B. Beaumont

acting

in

Incorporated

San

Philadelphia, Pa.

Francisco, Calif.

Established l«5tt

H.HENTZ & CO.

They

will

the

FRANCE

for

joint

commodity

and

and other

exchanges

Office

Main

72 WALL ST., N. Y. C.,
New York
505 Park Ave. (PL 1-2220)

the

up

B0 9-8420

City Branches
& 1430 Broadway (PE 6-9600)

sev¬

vari¬

CHICAGO

BOSTON

•

MIAMI

BEACH,

PITTSBURGH

•

CORAL

GABLES,

ODESSA, MIDLAND, SAN ANTONIO, TEX.
GENEVEA

AMSTERDAM

•

DETROIT

•

FLA.

HOLLYWOOD,

LONDON

•

NEW

•

PARIS

•

AIRES

BUENOS

•

BEVERLY

•

/

BRUSSELS

•

HONG

•

HILLS

ORLEANS
KONG

year's

next

committees

and

dealers

local

a

and

various

from

of

sincere

every

in

Wendt,
of the

sec¬

in the IBA. We

each

and

They

are

to

them.

of

Appendix B. George B.

as

hard-hitting chairman

mittee,

can

for

untiring
support

,

we

be

completely remiss if

we

acknowledge
the

IBA

cooperation
in

cause.

Gordon

staff

and

every

for

full

excellent assist¬

this

Private Teletype to London

investment

Board

of

Governors

valuable

to

all

statistical

of

facets

the

Company field

its

standard

COMPANIES—the

reference work

on

"bible"

subject—and

companion volume CHARTS & STATISTICS

/These services could not have developed
your

annual

the

constant interest,

as

encouragement and

they have without
active

use

of

our

brokerage facilities.

ARTHUR WIESENBERGER & COMPANY
has

already authorized the holding of
another

relating

conference

could not be realized.
The

data

INVESTMENT
and

Calvert

their

detail, for without

support,

SERVICE—supplying

advisory

Investment

failed

their

more

services importantly geared to their needs:

DEALER

would

ance

More and

throughout the country find the following supplemen¬

this

of

Also,

and

BROKERS

too.

WIR—the WIESENBERGER INVESTMENT REPORT

efforts

to

Paris: 370 Rue St. Honor6

tary

thanked

be

never

his

energetic

worthwhile

Teletype 212 571-1161

firms

and

and

120 BROADWAY, NEW YORK, N. Y. 10005

BANKERS'
we're Brokers' Brokers,

...

Municipal Securities Com¬

enough

Exchanges

Corporate Securities

representing

deep appreciation

thanks

one

listed

MODEL, ROLAND & CO.

of

composed

were

group

vote

owe

SECURITIES

Distributors

representatives from large and

every

INTERNATIONAL

Underwriters and

pro¬

under

Arthur E. Kirt-

tions of the country,

DOMESTIC AND

on

arrangements,

capable leadership of Donald

small




York Stock Exchange

stock

Meeting in 1964

Patterson and

of

Moorgate, London, E. C. 2

leading

be

concerning their

host

ley, respectively,

20-24

Members New

with

already received

Another
The

C.

London: Northgate House,

;

questionnaire,

setting

groups

as

gram

.

Stroud & Company,

William R. Staats & Co.

for next year.

IBA

ous

762-2606

212 worth 4-5300

Chicago, 111.

Louis, Mo.

municipal conference.

AVE.

Members New York and American Stock

;

a row.

eral informal requests from

Maplewood, N. J.

PARIS,

I

Milwaukee, Wis.

Denver, Colo.

general arrangements

conference.

We have

STREET

/

Incorporated

Hogle & Co.

pre¬

submitted

suggestions

program

Boston

'

King abridge 9-3500
1808

DEVONSHIRE

Robert W. Baird & Co.

Fred F. Barker.

respect to subjects for the program

Mitchell 2-5690

HAnover 2-9050
3505

STREET

Newark 2

New York 5

Louis, Mo.

Newman L. Dunne

appreciates the

many answers to the

of
52

St.

Harris Trust and Savings Bank

committee

to

Committee

and
t.American Stock

Company,

Incorporated

staff."

The

/ '

Stifel, Nicolaus &

Meet

and

sented for second year

Exchange

E. W. Darmstatter

ments Committee:

MEMBERS

Hew York Stock

Cleveland, Ohio

Other members of the Arrange¬

advance

in

discussions.

Congratulations

•,/

Co., Inc.

York, N. Y.

R. J. Cook

Co.

New York

J. A.

J. Van Ingen &

New

'

different place each year."

a

"Beautifully

ESTABLISHED 1889

■

B.

Donald C. Patterson, Chairman,

Trust

/

Raymond V. Condon

panel

more

selected

stimulate

to

'

Company

Philadelphia, Pa.

Corp.

Russell M. Ergood

sional community."

"

Fidelity Philadelphia Trust

KIrtley, Chairman,

Arrangements
First

St.

fellows attending"

enjoyed it immensely for edu¬
o+her

Anthony Coculo

T.

Milton S. Emrich

it

cational

interesting and educational, May 2, 1963.]

HALLE & STIEGLITZ

Winston-Salem, N. C.

Philadelphia, Pa.

tere sting."

"Thought

program

"Chronicle"

entire

the

younger

appeared

attendance

first

my

found

should
Note:

//

Clark

C.

Wachovia Bank & Trust Co.

Ergood, Jr., Chairman

Stroud & Co., Inc.

well

be continued."

"This

John

E. J. Altgelt

organized conference and should

educational, stim¬

Second ulating, and informative. For the
resumed information of those .who were

Firstended,

higher

was

the

of

Municipal Conference be held

last), which,
is important since the

varied

many

industry,

bond

again

sections

reply to the question,

happy to learn

industry and government,

the

problems confronting the munici¬

Municipal

all

re¬

with replies received from

would like to have the conference

ing

to

discuss, study,

pal

be

success

course,

/ We

municipal

and, explore

also

and again

in

finance

17

tremendous

a

M.

com¬

appears

on

people

interested

the

of

IBA has authorized us to

time for

Nashville, Tenn.

COMMITTEE -////

Russell

requesting their

ments, received

/

all of those in

sent to

was

sponse,

in the United States.

questionnaire

of

umbrella

IBA

Cherokee Securities Co.

MUNICIPAL CONFERENCE

plus this year than

able under the

more

Endorsed

conference

attendance

4°0, with rep¬

over

IBA

the

Success

again the Conference at¬

Once

the purpose of

The
which

history.

Meeting

'

Another

Congress Hotel. It is now pleasant

Carrying out

Annual

With them much

home

took

food for

Pick-

the

at

on

and

Calvert

Investment Bankers Association

conference next year will be even

Washington staff, is to be

our

of

many

can

Nash,

M.

will

We

industry. Our

our

press room was

be

the

of

passed

represented Conference be held in 1964.

were

all

as

publications of

Report of the Municipal Conference Committee,
as submitted by Chairman Russell M. Ergood, Jr.,
Vice-President of Stroud & Co., Inc., Philadelphia,
as

thorizing that the Third Municipal

go

The

was

mously

Municipal Conference

Members: New York Stock

61

Exchange and American Stock Exchange

BROADWAY, NEW YORK 6, N. Y.

.

Volume

198

Number

6328

Arthur S. Friend

.

.

The Commercial and Financial

.

Other

Pratt

Marsom B.

Washington, D. C.

v

vV.

Boston, Mass.

St.

Refsnes, Ely, Beck & Co.

B. F. Houston

New

Co., Inc.

Dallas, Texas

New

P. Alden

Joseph H. Sullivan

Arnold J. Kocurek

Cunningham,

Rauscher, Pierce & Co., Inc.

&

Co.,

Inc.

San Antonio, Texas

St.

Pnrtic

The

York, N. Y.

Northern

Trust

San

Anthony E. Tomasic

Bank

National

R.

The

Los

Moulton &

Philadelphia National Bank

Angeles, Calif.

Chicago, 111.

Bank &

Illinois

Clark

«

St.

Ladenburg, Thalmann & Co.
New York,

Chicago, 111.
Donald C. Patterson

Jacksonville, Fla.

Baltimore, Md.
Victor

H.

Kidder, Peabody & Co.
New

E. F. Hutton &

Louis, Mo.

New

York, N. Y.

William J. Wallace
Mellon

Bank

National

Trust

Pittsburgh, Pa.
Alan N. Weeden

Weeden

Company, Inc.

New

York, N. Y.

Ray L. Robinson

&

Co.

York, N. Y.

George B. Wendt

Hornblower & Weeks

First National Bank,

Denver, Colo.

Co., Inc.

&

Co.

Chicago, 111.

^

S.

Haven

Floyd W. Sanders

Davis

Zebold

L.

-

'

&

Co.

White,Weld & Co.

Prescott

Chicago, 111.

Cleveland, Ohio

v

Piper, Jaffray & Hopwood

.

Donald L. Pettis

Vostal

Joseph
Securities

Cincinnati, Ohio

Savings Bank

Dallas, Texas

V

Bank

Angeles, Calif.

Robert G. Davis

Baker, Watts & Co.

Courts & Co.

Los

William J. Riley

Republic National Bank

y

G. Thomas Yeager, HI

Atlanta, Ga.

California

United

Field, Richards & Co.

Cox

John

;

Thomas J. Pendergrast

York

New

Richmond, Va.

Edward B. Wulbern

Company

York, N. Y.

Stone, Jr.

Paul E. Uhl

Bank

Charles A. Richards

F. W. Craigie &

Pierce, Wulbern, Murphey, Inc.

New

Calif.

Francisco,

D.

Buffalo, N. Y.

Nashville, Tenn.

Walter W. Craigie

N. Y.

Chemical, Bank New York Trust
^

Minneapolis, Minn.

Zahner

UNDERWRITERS and DISTRIBUTORS

John W. de Milhau

Kirkpatrick, Pettis Co.

Zahner and Company

Omaha, Neb.

Kansas

The Chase Manhattan Bank

City, Mo.

New

York, N. Y.

Industrial, Public Utility and

Sherman Ellsworth

Wm. P.

Harper & Son & Co.

Seattle, Wash.

Railroad Securities, Municipal Bonds

>

Russell M. Ergood, Jr.

Stroud & Company,

Bacon, Stevenson & Co.

Incorporated

Members

American

Stock

Unlisted Securities

Bank and Insurance Stocks

Philadelphia, Pa.

Members New York Stock Exchange
'

Charles N. Fisher

Exchange

Singer, Deano & Scribner
Pittsburgh, Pa.

Laird, Bis sell & Meeds

Harvey J. Franklin

municipal

bonds

Merrill
&

Smith

San

Pierce,

Lynch,

Fenner

Members New York and American Stock Exchanges

_

Incorporated

Francisco, Calif.

120

BROADWAY, NEW YORK 5,

N. Y.

Charles S. Garland, Jr.

25

Broad

Street,

Telephone DIgby 4-4100

Bell Teletype 212 571-1170

Telephone BArclay 7-3500

Alex. Brown & Sons

New York 4, N. Y.

Batlimore, Md.

NEW HAVEN,

PHILADELPHIA, PA.

WILMINGTON, DEL.

William H. Hammond

SALEM, N. J.

SALISBURY, MD.

Braun, Bosworth & Co.

CONN.

DOVER, DEL.

.

ZURICH, SWITZERLAND

DALLAS, TEX.

Incorporated

Chicago, 111.
William G. Harding

Coffin & Burr

Underwriters and Distributors

Boston, Mass.
Robert

B. Harkness

Harkness & Hill Incorporated

Corporate Securities

Underwriters, Distributors and Dealers

Boston, Mass.
Elmer

G.

in

Hassman

'

A. G. Becker & Co. Incorporated

Specialists in Rights and "When Issued" Securities

Chicago, 111.

Institutional Research for

Corporate and Municipal Securities

Louis A. Hauptfleisch

Goldman, Sachs & Co.
New

Banks and Institutional Investors

A

York, N.Y.

HIRSCH & CO.

Bank

Chicago, 111.

McDonnell & £o.
INCORPORATED

Established 1905

Members New York Stock

'

'

Exchange—Ameri-can Stock Exchange

T.

Members

Norris Hitchman

Kenower, MacArthur & Co.

Detroit, Mich.

Boston

Chicago

Uptown:

A
250 Park Avenue




VITAL
INVESTMENT
ANALYSIS

Denver

Detroit

New York 5

Newark

New

York

Stock

Exchange

and

Other Exchanges

BROAD STREET, NEW YORK 4, N. Y.

Teletype: 212 571-1763

Telephone: HAnover 2-0600

w

First

Southwest

Company

John J. Kenny

J. J. Kenny Co., Inc.
New

NEWARK

WASHINGTON
PARIS

BALTIMORE

Arthur E. Kirtley

First Boston Corporation

Chicago, 111.

MIAMI BEACH
LONDON

LAKE WORTH

FORT PIERCE

(HIRSCH

& CO. S.A.R.L.)

BUENOS AIRES (HIRSCH & CO. S.A.)

York, N. Y.

San FranCisco
Los Angeles

25

William C. Jackson, Jr.

Dallas. Texas

120 Broadway

■

Hardin H. Hawes

Harris Trust & Savings

,

-

Marine Trust Company of

Corporation

Denver, Colo.

>

Daniel P. Whitlock

National

-

<

Fargo Bank

Western

Cumberland

_

Harris Trust &

Co.

Trust

Fred

Carr Payne

V

C. Carr

Chicago, 111.

William A. Noonan, Jr.

Continental

San

York, N. Y.

Minneapolis, Minn.

Coughlin and Company, Inc.

First National Bank

Wells

Miralia

Nortjhwestern National

Walter J. Coughlin

George B. Wendt

Company

York, N. Y.

Andrew E. Steen

Winston L. Molander

John Nuveen & Co.

'l-Philadelphia, Pa.

Moulton

W.

H.

A.

Francisco, Calif.

Frank

Robert V. Wehrheim

Houston, Texas

New

Co., Inc.

Memphis, Tenn.

_

Washington, D. C.

Thomas W. Masterson

Incorporated

&

-

Pittsburgh, Pa.

Underwood, Neuhaus & Co.

Dickson

First National Bank

Investment Bankers Association

Thomas & Company

Dallas, Texas

;

Drexel & Co.

Early F. Mitchell

Gordon L. Calvert

Lewis F. Lyne

Donald

^

City, Mo.

Walter H. Steel

York, N. Y.
T.

New

Bank of America, N. T. & S.

Company

Chicago, 111.

,

David

Louis, Mo.

Alan K. Browne

Philip W. K. Sweet, Jr.

Paine, Webber, Jackson &

Kansas

>

City, Mo.

Kuhn, Loeb & Co.

Blewer, Glynn & Co.

Pittsburgh, Pal *

S.

New

Clarence F. Blewer

Joseph M. Luby

Mercantile

R.

Bergquist

Siefert

Stern Brothers & Co.

Henry Milner

Chicago, 111.

Schmertz

Philadelphia, Pa.
Russell E.

Commerce Trust Company
Kansas

First Natinal Bank of Chicago

Francisco, Calif.

New

York, N. Y.

Schmidt

Hornblower & Weeks

Jr.

Harry F. Mayfield

Detroit, Mich.

Inc.

Orleans, La.

W. Marshall

>

Leedy,

Orlando, Fla.

Watling, Lerchen & Co.'

Scharff & Jones,

Crocker-Citizens National Bank

C.

Leedy, Wheeler & Alleman, Inc.
'

Charles C. Bechtel

James E. Roddy

Alger J. Jacobs

San

New

York, N. Y.

First National Bank

Seattle, Wash.

Loomis

First National City Bank

Goodbody & Co.

'

Dallas Union Securities

Orleans, La.

Seattle

Phoenix, Ariz.
& Co.

Houston, Texas
George E. Barnett

James F. Reilly

Indianapolis, Ind.

New

Wesley G. Schelke

Arizona

Y.

Rowles, Winston

Phoenix, Ariz.

Corporation

Hattier & Sanford

Louis, Mo.

The Valley National Bank of

■

New York, N.

Joseph E. Refsnes

J. B. Sanford, Jr.

Knight

First National Bank

E. S. Lee

S. David Arnspiger

City, Okla.

Hensley, Jr.

Indianapolis Bond & Share

:

Trust. Co.
.

Louis, Mo.

York

S.

Newell

St.

Mercantile Trust Company

Company

S.

Program

The

Thomas L. Ray

Liberty National Bank & Trust
Oklahoma

of

members

37

,

v

Committee:

Chemical Bank New

Geo. H. C. Green

Louis

•

Leonard S. Allen

Estabrook & Co.

Folger, Nolan, Fleming & Co,

Chronicle

Direct
New

Miami

York,

Beach,

Wire

Washington,

Palm

Beach,

PALM BEACH
AMSTERDAM

GENEVA (HIRSCH & CO. S.A.)
SAO PAULO (HIRSCH & CO. S.A.)
Service:

Newark, Baltimore,
Fort

Pierce, Lake

Worth

38

The Commercial and Financial Chronicle

added

Report of IBA Oil, Natural
Gas Securities Committee
Kenneth E.

reserves

five years,

Hill, Partner in Eastman Dillon, Union
New York City, and Chairman oj

the

past

that

the

invested

group

important states have experienced
declines, and except in Louisiana,

States

there

represents $245

have

fields

-

been

during

/

With ra

major

no

discovered

period.

Securities & Co.,

during

mostly offshore. Other

-

oil

this

>

Thursday, December 26, 1963

.

of this

capital

of companies in the United
is

about

earnings.

billion and

$24.5

additional

every

of

return

million

1%

more

in

smaller number of

ex¬

from

ital expenditures have been run¬

about

billion,
tion
to

group

thus

ploratory wells turning up fewer ning between $3 and $3.3 billion ample
important discoveries, it is diffi¬ each year for the Chase Manhat¬ dends

mitted the

cult

Domestic Petroleum

Industry

Although overcapacity in produc¬
tion

and

refining continue

petroleum industry, revenues and
earnings
the

show

c

sig¬

versification into allied

1962.

ducing

a

expand at the rate

Kenneth

E.

Hill

with the

earnings of about $2,150 million,

mates

consumption

gas

at

grow

domestic

approximately

approximating

8%.
The

faced with

oil

in

necessary

to

marketed
creased

cubic

oil

b/d,

and

production

similarly

Output of natural gas

gained 6%

placed

to

on

it

caused

by

Warm

for

as

a

cloud has

domestic in¬

recurrence

excessive

to

-

products

However,

In

this

States

with

pared

should

lease

10%

level of 1956-57.

period,
States

net

income

be

plus
in

will

become

needs

and

the

approximates
day

as com¬

a

maintain

for

both

it

does

same

United

increased

not

for outside

expansion by the domestic oil in¬

dustry.

However, purchases

pro¬

emergencies.

If

However, recent

years

have

tic producing

capacity while

has

And with

increased

pro¬

gradually.

drilling steadily declin¬

allowables

in

i.

Production

Thousand

Barrels/Day

1958

9.650

6,710

ing, this trend should continue.
Table I shows the trend of

sev¬

.V//--'.

;

domestic

the

30.5

J V;;12.7

-

47, 758

49,496

7,054

72.7

31.7

12.4

9. 900

7,035

71.0

31.6

12.4

44,018

10,100

7, 183

71.0

31.8

12.2

43, 871,

'

10,150

7,332

72.3

31.4

11.8

43,779

1963 (Est.)

10,200

7,500

73.5:

31.3

11.4

42,500

1965 (Est.)

10,200

7,800

76.5

31.2

10.8

41,500

TABLE

United States

n

Supply and Demand

start¬

probable

expected

annual

Estimated

1962

of crude and products

the remainder.

outlook

in

prospects

for

7, 500

1,017

1,050

1, 150

8,349

8, 550

8,950

1, 126

1, 150

1,200

953

1, 000

,2,079

2,150

10,428

10,700

11,250

10,396

10,650

11,250

1.8

150

150

Total Production

7,800

pro¬

United

the

sanguine,

crude

a

7,332

Liquids

comprising

more

appears

Crude Oil
Natural Gas

imports

Although the

1965

1963

Thousands of Barrels / Day

incre¬

liquids production should account

crease

price

Crude Oil Imports
Refined Product

in¬

Total

Imports

Imports

1, 100

2, 300

-

remote.

lower

leads to

the

in¬

with

a

division

the

of

during this period

appear

Total

rough estimate of the prob¬

able situation in 1965.

reached

to' decline.

a

reserves

peak and started

Only

Refining

Noteworthy

is the fact that crude oil
have

industry

Louisiana

has

In

and

domestic

refining the indus¬

additional

capacity

in

recent

merely adding units to

automate.

up¬

likely

are

million

about

HAnover

Y.

2-6900

the

rienced

running

Underwriters

—

Distributors

of

viding

in

Including Exports-

record

capacity
from

up

of

80%

World

cold

expe¬

refineries

were

capacity, thus
further evidence of
for

10-15%

a

SPECIAL SITUATIONS

spell, most

at

necessity

8.6

1963,

during January 1963,

domestic

large

day

per

Western

a

about

average

million,

in 1958. And

Exchange Place, New York 5, N.

*

result, crude

a

85%

10.2

when

Teletype 212 571-0287

fo

barrels

around

or

As

to stills in the United States

runs

-INCORPORATED

Demand

try has refrained from providing

and

W. H. Morton & Co.

Supply

Marketing

grade products and to modernize

pro¬

the

cushion,

for seasonal and emergency needs.
-

CORPORATE BONDS

STATE, MUNICIPAL AND

Most

marginal

been

closed

refineries

down,

industry with

have

leaving

be

large,

highly

operated

by

half

the

Hettleman & Co.

the

effi¬

cient, automated units which

ONE WALL STREET

NEW YORK 5,

can

work

N. Y.

Telephone: WHitehall 3-5770

force of five years ago.

Marketing in the United States
will

continue

petitive

to

the

as

be

highly

larger

com¬

companies

push their marketing diversifica¬
tion

time,

being
age

the

across

same

closed

At the

country.

marginal
and

outlets

higher

are

gallon-

station and per employee

per

is being attained.

>

LEBEINTHAL& CO.,I INC.
ONE CHASE MANHATTAN PLAZA

•

NEW

YORK, N. Y. 10005

HA 5-6116

Ingalls

&

Snyder

r

Financial

f

Members New York Stock Exchange

Although

the

domestic

petro¬

Members

leum industry is characterized by

extremely
caused

competitive

principally by

American

Stock Exchange

conditions
overcapac¬

ity, various efficiencies introduced

^Specializing in Municipal Bonds
for the Individual Investor
The Oldest House in America for Odd Lot Municipal Bonds




Wells
Drilled

-9, 700

supply related

for about two-thirds with

portant

%
y

Billion Bbls

69.6

demand.

have

Life

Reserves

1965.

in

States

Years

Utilized

I960

Texas

after

duction

Producing Data

%-

Capacity

the

estimated production ment in domestic supply of nearly
300,000 barrels per day, domestic

witnessed little addition to domes¬

by

I

1962

of crude in 1963 of 7.5 million bar¬

rels.

necessity

any

financing for internal

seasonal

Table II illustrates the

Of

improve, there

appear

sur¬

10-15%

ing

to

overcapacity exists

continues

1961

to

Louisiana could occur,

trend

as

1959

that

and

is

capital expenditures.

from the

Producing

years.

remembered

cushion

than

divi¬

increased

excess

few

a

capacity of at least
a

for

five-year

more

industry and cash

United States Crude Oil

circumstances, it is

production and refining to

vide

same

to

TABLE

spare pro¬

the

providing

in

from

has

for

flow

During the

operations

operations

in the domestic

million for

expenditures

1962, down about

Year

within

necessary

years,

20

offshore

and

long

deple¬

applicable

significance,

capacity

onerous

eral pertinent factors of this im¬

inventories
This

than

2.5 million barrels per

of

to the immediate outlook

earnings.

producing
less

time,

which

time

weather.

United

capacity

desirable.

or

now

of

-

improving

larger surplus crude

a

producing

duction

wars

from

realization" for
doubt

the

the

price

plagued

1.1 million

;

with

product

in¬

trillion

14

to

Recently, however,
dustry

gain of
was

million

7.5

b/d this year.

been

a

production

gas

feet.

liquids

and

million

10.4

which represents

3%

up

with

Crude

the $450

exclude

above forecasts eventuate, slowly

petroleum industry is still

as

1963,

per

^

ing exports, will reach 10.7 mil¬
in

4%

Supply

lion

day

rate

of various esti¬

consensus

an

Consumption of petroleum, includ¬
per

should

somewhat faster

a

annum.

from $1,990 million in 1962,

1962,

capacity

apparent that the domestic

b/d through 1970, It
compound growth rate of 2.7%. is

Natural

report

2.9%.

gradually

we

As

in the United States if

about 1.5 million barrels
daily in
Texas and 750 thousand in Lou¬

of about 300,000

companies

compared1

the

consequence,

also

capacity

isiana.

mated that demand for petroleum

integrated oil

barrels

in

producing

Under these

A

of

a

Louisiana is there

In the United States it is esti¬

group of

increase

and

upon

will continue to

up

decline

com¬

Demand

representative

will

activities.

isfactory earnings levels.

omparison

with

slowly

acquisitions make most

in

year

decline

to

through operating econo¬ United States. As
better integration and di¬ oil reserves must

vement

this

tinue

situdes

fluctuating product prices for sat¬

nificant imp r o

to

panies much less dependent

expected

to

periodic marketing vicis¬

gas

business

are

endure

condition

velopment locations, and it seems
inevitable that -drilling will con¬

tan group

addition, earnings from foreign will certainly drop sometime be¬
production and domestic oil and fore 1970. Only in Texas and

of

sector

better

in

backlog of de¬

a

States

funds

In

of

this

is

States mies,

United

problem for the

a

to be

dustry

to maintain

Noncash

has increased at least

during

span,

50%.

depreciation,

amortization

United

25%

$1.35 billion to $2.10
about

for

and

the Oil and Natural Gas Securities

Committee, sub¬
following Report to the Convention:

or

charges

this

>

.

During the past five years cap¬

~

,

.

.

during

the

allowed

capital

to

1958

an

ly.

to

last

the

The

five

return

years
on

have

increase from

7.2%

estimated 9%

current¬

importance

demonstrated

when

it

of
is

,100 BROADWAY, NEW YORK 5, N. Y.

invested

this

in

is

realized

COrtlandt 7-6800

—

Bell

System Teletype 212 571-0892

Volume

integrated

companies

oil

crude

Number

198

of

producing

and chemical

6328

.

.

large

The Commercial and Financial Chronicle

.

by equity, oil

The

pay¬

petroleum

experienced

Europe

Industry

companies will have

to be financed

mand

International Petroleum

properties

has

Western

exceeded

this

even

in

the past few years,

over

which

industry is the

39

10%.

expansion

But

has

been

ments, and cash borrowings. Dur¬ largest industrial activity in the eclipsed within Japan where the
ing 1963 it is estimated that

ly

billion and

a

half dollars will

a

will be expended for

by

large

oil

represented

ings

frohi

in

the

from

capital

and

long term borrow¬

institutions.

Transac¬

almost

aspect.

any

Outside the United States it tends

dominate

economies

since

to

of

often

largest

employment and capi¬

investment.

vital

it

the

of

one

of

sources

tal

the

countries

many

of which one-fifth represents

equity

the remainder

world

acquisitions to

companies

United States,

near¬

It

its contribu¬

has

rate

18%

each

that

Japan

second

averaging

been

with

year

will

the

result

the

be

soon

largest petroleum consum¬

tanker

on

the

ease

an

independent producers

ipated,

Well

as

as

antic¬ future.

are

diversified companies.
in

46%

consumption

the

of

petroleum
the

World's

Free

in this country,
between supply and de¬ requirements

gap

accounts

and

for

energy

natural gas

a

further

agreements

countries

the

and

oil

industry.

asked

for

numerous

abroad and modest but

steady

ex¬

lower

1962

in the

World will in¬

Free

the remainder of this

over

shown in Table IV. The

as

prices.

the world

cluding

ships

of

weight
dead

end

than 2,000

totalled

trend

The

continues

70.3

World

should

the

Free

about

average

23

million barrels daily in 1963 and

retirement

War

II

been

T-2

of

older,

type

contractual

relation¬

ships which would lead to higher

in¬

income to the host countries

barrel, of

towards

does

as

ships. In fact, most of the World

in

have

the

the

petrbleum

present

They

adjustments

an

tion

of

in

prac¬

by the interna¬

engaged in

over

weight tons,

of 3.2 million tons

tankers

super

the

less

tons)

earlier.

year

At

tanker fleet

with

pricing

tional

rapid growth

table indicates that the consump¬

Today

Despite the slow rate of growth

existing

con¬

discontent

companies producing oil in their

of

decade

Demand

or

with

OPEC

their

(ex¬

result of this

a

crease

acquisition of

crude

voice

at

As

crease

the

deliver

will

to

United States.

million

for

is

tinue

of

tices

expected that demand for petro¬

outlook

tankers

of

(OPEC)

members

products to the consuming nation

leum

the

abundance

thus

Countries
The

supply pat¬

conducive to lower transport rates

Organization for

Petroleum Exporting

direct bearing

a

that

and

The

of movement and thus

Equally important is the fact

additional

and

vast

a

tern.

dead

properties by World

and

availability of

effects the world's oil

pansion in the United States, it is

of

The

tanker fleets has

tions of this nature will' probably tion to energy consumption and
continue to be substantial because capital
investment in the Free
sales

pipelines,

fleet.

ing nation in the world, after the

therefore,

is,

understand

growth

planning,

smaller

tankers

have

scrapped, retired or, at best,
seeing
very
limited
use.

time

oil

produced.

va^ioijs companies

per

this

At

meet¬

are

ing with individual country rep¬
resentatives to discuss

terations

of

possible al¬

contracts. It is

these

rumored that the

companies

may

be prepared to consider a change

16%, making a total of increase at a rate of about 4.5% are
in the
present method of con¬
that firmer 62% of all energy supplied by the each year to a range of 31 to 32 Tanker freight rates for general sidering royalty payments as an
Table III million barrels per day in 1970. purpose tankers were quoted in income tax item and accede to the
prices for crude oil and products oil and gas industry.
might be expected, and a major shows total energy consumption This is equivalent to an annual October of this year at the lowest demands of the host countries by

mand

is

within

expected to be reduced

few years so

a

expansion program in the domes-

in

tid

1963

industry

marketing.

industry

within, the

not

may

adequate

be

the

Free

As oil and gas

meet inroads

to

both the increased capital expen¬

source

ditures and

is

dend

a

higher level of divi¬
debt

But

payments.

-

to

-

equity ratios for most companies
will

remain

World

broken

term

debt

modest

that

so

financing

the

1962

and

between

long

into

great

will

bulk

likely

coal

as

have

49%

energy

that

of

and

the

gas,

furnish

Free

World's
is

energy

may

market

for

18%,

gas

so

between them,

two-thirds
energy

based

nomenal growth in

the

of

needs. This
the

on

daily

outside

and

the

Free

World

United

thousand

300

total of 1.2 million bar¬

making

a

rels

production

of

cilities

which

pansion.
2.7%

must

in

realistic

States

at

is less than half

Free

World,

and

the

annual

volume.

forecast for the rest

only

evident

Thousands of

Petroleum

23,200

Change

B/D

%

-

1962

for

% of Total

-

24,800

6. 4

46. 4

45,5

7, 800

7,400

+

5.4

15.6

15.5

15,400

15,300

+

0.7

30.8

31.9

3,600

Coal

3,400

+

5.9

7.2

7. 1

Hydroelectric
Total

50,000

47, 900

United States

23,400

Other Countries

'

100.0

100.0

22,650

3.3

46.8

47.3

26,600

25,250

5.3

53.2

52.7

50,000

Total

4.4

47, 900

4.4

100.0

100.0

+

+

produce
day

per

rates

of

that

this

it

would

discounted

oil

calculation of income taxes rather

produced

in

any

consuming

world.

limited

But

States.

crude

North

rels

duction

that

remembered

of

1965

Thousands of

1970

%/Year

United States

10,500

11,100

12,500

2.7

Free

12,600

14,400

19,000

,6.0

23,100

25,500

31,500

4.5

Total

,

is,

to

Rate

B/D

1963-1970

Foreign

It

Iraq or the

take

the

in

order

view

range

foreign

prolific

requires excess

page

&

Co.

Exchange

J
,

.

CORPORATE
Oldest

&

MUNICIPAL

BONDS

Specialists (with Predecessor Firm) in Insurance

Stocks.

Serving

Dealers

Institutions

and

since

1927.

the

in

116 JOHN
x

STREET, NEW YORK 38, N. Y.

Telephone BEekman 3-0626

"IN THE HEART OF

Teletype 212 571-1660

•

THE INSURANCE DISTRICT"

more

producing areas
producing capac¬

against political

hedge

a

un¬

certainties. Therefore, despite

present

excess

the

which

capacity

should be with us at least through

this decade,
a

BANK

STOCKS

long

its

standpoint for the

range

to

order

keep

in

steadily increasing con¬

sumption

of

hydrocarbons.

major additions of energy
discoveries

recent

Holland

in

comed

CHASE

a

as

political

1

in

natural gas

be/ wel¬

only

can

Such
as the

further hedge against

GOVERNMENT
SECURITIES

TELETYPE:

TELEPHONE:

BOwling Green 9-5600

W

212

571-0769

though it
displace fuel oil and

uncertainties,

will tend to
coal

of

pace

Western

United States Government Securities

Europe.

MANHATTAN PLAZA
Transportation

NEW

YORK 5, N.

Y.

From

Telephone:

Teletype:

HA 5-6600

212 571-0768




STREET, NEW YORK 5

active search for oil and gas

with the

CO., IINC.

44 WALL

industry to continue

reserves

M. A. SCHAPIRO &

BRIGGS, SCHAEDLE & CO., INC

it is necessary from

World

Free

vious

the

that

ample oil
rent

demand.

reserves

requires

to

ob¬

World

Free

reserves

Yet

has

it

Bankers Acceptances

to fulfill cur¬
to

move

consuming

large

Federal Agency Issues
is

foregoing
the

>

of

ity from many diversified sources
as

'

STOCKS

instability,

political

uncertainties

and

on

;

INSURANCE

consump¬

plies for the future although the
world
today
appears
surfeited.
Furthermore,

oil

de¬

producing capacity
provide ample sup¬

to

of

expected

Underwriters and Dealers in

Kingdom alone.

long

and

it is

quite necessary

therefore,

reserves

production

con¬

pipeline

day each year, which is

per

the

effective,

If

prices.

America

capacity and port facilities rather
capabilities of
the
knoWn' fields.
However, it
be

for

becomes

Members New York Stock

than the productive

should

tracts

posted

the

for

change in the

Shelby Cullom Davis

to

existing

by

fictitious
rumored

Continued

;

is

tion in the United

1963

the

of

this

realizations

of this

the equivalent of the present pro¬

Growth

cheaply

;

ing at the rate of 1.2 million bar¬

Free World Growth in Demand

prolific

area

mand in the Free World is grow¬

TABLE IV

in

abroad

bar¬

and

bring

to

outside

markets

more

and

present

United

ability

setting

prices

world

than

more

the

in

It has

the

million

five

production,

outside

hand

posted

re¬

amount about one-half is located

+

Natural Gas

producing capacity.

it

time

some

estimated

rels

the companies will have

freer

than

than ample

more

could
1963

this,

availability of tankers is such that

quantities and at low cost, should

World

the Free

been

1962

one-

fact,

continue to be delivered

serve

Estimated

1963

of

Supply

been

for

informed

well

will be increased

the

has

a

return

In

to

it is
significantly. In known that they are insistent on
appear
that the utilizing prices closer to actual

reason

6.0%

that there is

result.

to expect that tanker rates

of

United

the

petroleum de-

Energy Consumption

according

or

sources,

phe¬

in

would

major political upheaval

provided interruption in the Free World
pattern,
there
is little
ex¬ supply

be

the

third

stiffening of rates. Short of

some

rate

annum

per

some

annual

The

growth

and other fa¬

for the anticipated

year

Throughout
TABLE

rates
experienced
for
these considering them as an expense
States tankers in the last two years item instead. If this is true, a
split
of
around
58-42
domestically, though there has recently been profit

increment of 900 thousand barrels

it each

world,

1970 oil

and natural

oil

an

the

believed that by

of these forecast

funds.

continue to make

throughout

will

provide

for

down

that

At

generated

neces¬

in refining and petroleum, natural gas, coal and
time, cash hydroelectric power.

principally

sary,

become

may

scale

these

markets

logistical

Certificates of

Deposit

88

The Commercial and Financial Chronicle

40

ity

Report of Committee

strengthen

this field.
column

For Public Education

Municipal Securities
Stone, Jr., Vice-President of the Buffalo,

Western New
York, in his capacity as Chairman of the Committee
for Public Education on Municipal Securities, pre¬
sented this Report to the Convention.

Once

again, it is

our

Newspaper

privilege to

activities
Public

Committee

the

of

Municipal

on

'

Securities.

Though

has

year

been

a

busy

has

suing

over

North

Fred D. Stone,

understanding

Jr.

pand

to

to

The articles have

Carolina,

Carolina,

the

the

to

as

municipal

bond

New

York,

Virginia,

Con¬

newspapers,

assist

members

their municipal

to

bond
'

ness.

-

ex¬

busi¬

v

Texas

and

Tennessee

much

that

more

Y.

New York,

Bank

The First National Bank

Dallas, Texas

Chicago, 111.

The Northern Trust Company

Baker, Watts & Co.

Chicago, 111.

Baltimore, Md.

the

created by

business

panded

of advertising and the use
new
sales
promotion
tech¬

power
of

niques. We

particularly grati¬

are

by the quality and scope of

fied
the

advertising

devel¬

programs

oped during the year by some of
the

around

firms

smaller

the

country, as evidenced by the dis¬

This success

play in the arcade.
will lead to

greater demand for

a

effective

more

sophisticated

and

promotional materials in the fu¬
ture, and we shall try to produce
them.
Two

Available

Brochures

New

At This Convention

the

Following

success

of

our
In

first

advertising

kit,

"Nothing

Gained,"'

Nothing

Ventured,

fact, two

Municipal

Tax-Exempt
other,

aimed

which

is

sent

are

51%

rations,
Woman

About

bond

corpo¬

"What Every
Should

Investor

many

sus¬

to

develop

Incidentally,

area.

that

this

Bonds

brochure

the

Washington

We

Solicit Your Business

written in collaboration with

Committee

by

years

many

YORK OFFICE:

Municipal—Public Revenue

new

was

CO., LTD.

Stat

likely municipal

prospects, so we have a new

brochure

THE DAIWA SECURITIES

BROKERS

Know

female population-

our

us

Mr. &
Mrs. George B. Wendt, First
Elmer G. Hassman, A. G. Becker & Co.
Incorporated, Chicago
/

Hassman;

repre¬

Municipal Bonds." We

affords

G.

Elmer

National Bank, Chicago;

w

to

American

entitled,

that

pect

Mrs.

distaff

shareholders of

the

of

is

Bonds."

the

at

reported

publicly owned

JAPANESE SECURITIES

brochures

new

being introduced. One is entitled,

it "Why the Informed Investor Buys

decided that further flexibil-

was

Editor

staff

a

and

Because

your

who for

woman

the

was

We offer

Woman's

"Baltimore

the

of

•

>

:

-

-

Simultaneous

Sun,"

coverage

•

and

BEEKMAN

3-3622

a

is

who

with

BROADWAY, NEW YORK 6, N. Y.

TELEPHONE:

'e

G. Thomas Yeager, HI

Edward D. McGrew

Many of our IBA members are

side

149

N. Y.

George B. Wendt

r

just beginning to experience ex¬

The

NEW

Steel

Drexel & Co.

National

Mercantile

rL

done.

Co. Inc.

New York, N.

rea¬

York, N. Y.

Walter H.

Lewis F. Lyne

but recognizes
remains to be

progress

Bacon, Whipple & Co.

and undoubtedly else¬

where.

industry and to develop new ma¬
terials

placement

necticut, Maryland, Georgia, Mich¬

to

of

total

igan, Ohio, West Virginia, South

better

public

and

of these articles,

use

our

an

number of

a

Pennsylvania,

sey,

dili¬

function

co¬

news¬

furnished with

400 papers.

pur¬

designed

as

sonable

,

■

New

J. J. Kenny

persuaded that these

represent

was

appeared in California, New Jer¬

a course

create

making

are

continued

gently in

as

were

bringing

community

well

papers,

your

work

106

dailies,

Committee

to

and

excellent

report that

happy to

are

additional

individ-

uals,

sought

was

for

industry

as

You,"

We

and for all of
us

and

municipal

on

entitled, "Your Community

operation of the Group Chairmen.

very

one

the

series

newspaper

received through the

the

past

for

bonds

Education

the

Chicago, 111.

Harold H. Sherburne

John J. Kenny

in

accomplishments

of

Bacon, Whipple & Co.

York, N. Y.

Detroit, Mich.

promotion,

Municipal
Bonds," has experienced sales in
excess of 200,000 copies, with or¬
ders
being received daily. The
Committee is

Francis R. Schanck, Jr.

William L. Hurley

Professional

"Why

Invest

People

Coverage

distribution

Increased

report to our membership on the

New

Dominick

Baker, Simonds & Co., Inc.

of sales

area

booklet,

our

N. Y. office of the Marine Trust Co. of

',

We

&

York, N. Y.~

these

that

received good use.
the

Dominick
New

'.■■'"V.-

White, Weld & Co.

proved to be most acceptable and
In

Avery Rockefeller, Jr.

Lloyd B. Hatcher

and

members.

to

report

to

Thursday, December 26, 1963^

.

John Nuveen & Co.

Chicago, 111.

New

developed

free

happy

,

one-

"Ten

entitled,
was

furnished
are

Fred D.

ads

Salesmen,"

on

series of ten

The

in

efforts

our

.

E. H. Davis

to variety and size of ads

as

would

.

FUBILLS, N. Y.

In

it

these

to

two

to

business

municipal

the

is

compiled. ' The

being

pamphlet
be

should

of

prove

value

industry. Copies will

our

Competant execution of "Dollar Bond" orders.
Immediate "Dollar Bond" quotations.
Our

assurance

of courteous service.

DRAKE & COMPANY

bond

information available through this

to

•

,

bro¬

prepared by IBA member firms re¬

lating

>■'/:

teletype network.

•

the

bibliography of materials

a

our

Prompt response.

-

^

addition

chures,

in

believe

We

market.

will sell.

over

•

specializing

firm

tising

,,

Wide National coverage.

•

associated

public relations and adver-

woman's
CABLE ADDRESS:

currently

■

111

Broadway, New York 6, N. Y.

Telephone: WOrth 4-4545

Teletype: 212 571-1872

soon

distributed.

Many ideas and plans

are

being

reviewed to develop new ways to

More Than 60 Years

of Efficient and

expand and strengthen

your

mu¬

nicipal bond business in the

Economical Service

ing

,

'J ~'

You

year.

about

these,

hear

will
are

we

com¬
more

sure,

from

STATE, MUNICIPAL

Chairman and his Com¬

your new

mittee.
Last but not

New

York, !?,

and

JerJylCity,

by

N. J.

Exhibit in
you see

We afford economies

a|l: otl||j||ljvaril||es

to

underwriters, distributors,, corporations

for

our

and State Stock

in

lower

perform

and

Transfer Company

NEW YORK 7, N. Y.

Established

Exchange Place

JERSEY CITY 2, N. J.

1899
BEekman 3-2170




HEnderson 2-2211
WHitehall 4-3775

BONDS

vital

both

our

pays.

COMMITTEE

Fred D.

The

15

REVENUE

Respectfully submitted,

MUNICIPAL

50 Church Street

a

PUBLIC

profits—that public

FOR

EDUCATION

Registrar

AND

have all

lobby. Here

expanding

and

education

Original Issue and ^transfer Tax Rates.

the

promotion

service

free booklet setting fortf^^mdrrent Federal

you

proof that advertising and

business

and their stockholders,
Write

sales

least,

inspected the Advertising

now

Trust

Company of

Buffalo, New York
K.

Bank of

San

AX-iXEMPT BONDS

Stone, Jr., Chairman

Marine

CO., INC.

SECURITIES

Western New York

Alan

RIPP &

PUBLIC

ON

Browne

America, N. T. & S. A.

Francisco, Calif.

40 Wall Street
New

York, 10005 N. Y.

Tel: HAnover 2-5252

TWX: 212-571-1745

Volume

198

Number

6328

.

.

of

Report of IBA Foreign

capital.

1958

of

outflow

from

all

with

concerned

the

restrict

to

moves

traditional

freedom

of

us

to

the

in

our

world

today.

7:7Y/ '
Chairman

the

proposed

the

of

IBA

of the Foreign

In¬

"Interest

vestment

Committee

of the IBA,

with their associates,

appeared be¬

Act

of

in

to

1963."

July
i

special
sage

mittee

in

fiscal,
cies of
out

be

previous

years

solved

by

has

could

and

price,

wage,

and

to

other poli¬
of

measures

basic

freedom

strength/ of

in

affect

of

testimony

opposition

balance

of

run

a

and

our

with

the

economic

the

which

economy

United

the

the

to

significantly im¬

it in the short

Private foreign

Americans.

for

investment is

an

the international asset

po¬

United

and

of

the

States

benefits the balance of payments
in future years
of

interest

and

principal
:

So far
of

cans

rities
is

and

;

1962

for

securities

exempted

balance

can

secu¬

of

which

the

under

payments

of

could only be

Compliance

Alternative

that

the

the

through

stated

by

the

effective

of

improving

of

U.

nor

with

our

issues

of

the

appear

Interest creased
United

neither

desirable

international

proposed

for^^ihyestment
States, reducing

asset-creating expenditures abroad

means

Continued

balance

on

page

111

Canadian

of

Established 1928

securities—it

that the

proposed

payments

have

for

35

offered

years

a

special service

to

Retail

'

Organizations, Investment Trusts, and Institutions, furnishing
them with information

supplemented by pertinent analytical

a

our

deficit

We

reports

descriptive of—

by

reducing the accumulation of longterm assets.

•

Fundamental

Causes

Interesting growth securities

Ignored

Utility and Industrial securities

the

balance

of

•

Oil and Gas stocks

causes

payments

def¬

icit.

Government

tary

7 /

-

grants and capital

outflows in 1962 amounted to $4.3

billion;

moveover,

expenditures

United

the

of

Your inquiries in these divisions

mili¬

overseas

States" amounted to

State and General Market

in the

our non-

ex¬

slight temporary reduction in

return

DISTRIBUTORS

com¬

$56

tax would at best contribute to

of

—

is

present problem by im¬
our

•

DEALERS

outlook

and

petitive position, encouraging in¬

persons

was

S.

position

proving

portfolio

S.

the U.

(2) The proposed Act is not ad¬

—

us as

belief

its

proposed

an

detrimental to

strong. It would be better to deal

enumerated

restriction

investment

long-run

well.

Suggestions

IBA

the

Our long-term balance of pay¬

thereasons

above

friends

upon our

over

securities.

dressed to the fundamental

UNDERWRITERS

that

are

proposed exemption for new

balance

hardship

a

abroad

pro¬

arising from transactions

Considering
a

pose

ments

For

market, which

national asset to be fostered

a

rather than injured. It would im¬

and

burdensome.

prove

would

in the Ameri¬

outstanding foreign

ing

ternational capital

loans.

complex.

It

consequences.

injurious to the U. S. in¬

actually in

was

net surplus

a

bank

effects

concerned, if adjustment

are

be

purchases by Ameri¬

as

investment

foreign

Equalization Tax Act

outstanding foreign

made

through payments

dividends

More¬

payments benefits from
of

ex¬

tourism, is

enforcement procedures will

and

the years the U. S. bal¬

repayment

private
for

of foreign

proceeds

would

run.

asset-creating expenditure/ It im¬
proves

In

be most

abroad

istratively

Japan

States emptions under the Act—includ¬

payments in the long

and will not

prove

and

while

unaffected

probable

Any

beneficial

fall short of justifying the

would

adverse

special, tariff

a

enacted.

be

short-term

(7) The proposed tax is admin¬

coun¬

services.

interest.

The proposed tax will ad¬

(1)

versely

sition

interfere

would

the

in

ex¬

restrictive and negative character
which

of

ance

million

fundamental nature with¬

resorting

IBA

direct

expenditure

payments position and should

restriction

for

commercial

specifically used to buy

jobs

proposed tax is summarized in the

balance

our

problem

monetary
a

the

are

following points.

pressed its belief that
should

Act

The Com¬

payments.

payments

and

pur¬

the connection is di¬

cases,

over, over

to

the

of
Andrew N. Overby

the

of

balance

Tax

The substance of the

mes¬

on

Canada

as

goods

the

With

U. S.

securities,

posed Afct, there

18,
his

n

Equalization

through

Com-,

Aug. 21, 1963 to testify

on

terest

1963

of

Means

opposition to the proposed "In¬

Congress

the
on

tatives

rec¬

ommended

and

Ways

invest¬

credit.

their

and

issues

mittee of the House of Represen¬

President

Kennedy

the

fore

which

1963"

many

and

Equalization
Tax

foreign

U. S. goods and services and pro¬

:

Tax;

President

The

follows

our

vide

with

investment,

V

such

buy
rect

Proposed Interest Equalization

and most spe¬

the

to bring

position

income

dollars they obtain from

our

capital market

cifically

helped

leading

not

abroad, namely, private portfolio

of

■

of

of

one

nearly off¬

private

of

penditures

chases

dis¬

was

private

Trade

is

only

tax

selects

aspect

leaving

tries
have

It

investment

$15,419,000,000

by

proposed

criminatory.

new

for

$16,626,000,000

set

aggregate

The

(6)

from

years

the

outflow.

Overby, Vice-President oj First Boston
Corp., New York City, in his capacity as Chairman
of the Foreign Investment Committee, presented A
the following Report to the Convention.
;•
1*963, the Foreign Invest¬

1962

ment; in 1962 income exceeded the

Andrew N.

During

In the five

through

net

Investment Committee

ment Committee has been mainly

41

The Commercial and Financial Chronicle

.

Securities Business

are

of the Investment

respectfully solicited.

further $3.0

a

billion* There is little hope of cor¬

recting

balance of payments

our

deficit unless the balance of pay¬

Municipal Bonds

ments leakage that is involved in

p.

these Government expenditures is

120

reduced, and reduced substantial¬
ly.

We must also improve

position in

relation to

cost

our

fox

&

co „

REctor

INC.

BROADWAY, NEW YORK 5, N. Y.
Teletypes

Telephone

com¬

our

f.

212-571-1710

2-7760

petitors abroad, and enhance the
attractiveness

Established 1914

investment

of

in

the United States by reduction in

Geo. B. Gibbons & Company
A

INCORPORATED

personal

ures.

Chase

Manhattan

Plaza, New York 5, N.Y.

income

V

/

(3)
One

corporate

and

taxes and other appropriate meas¬

The

Y'Y.'Y

'

proposed tax

is

accurately described not

as

at all but rather

tive

tariff

to

as

a

limit

tax

protec¬

new

the

more
a

tion of

foreign securities. The

called

"tax"

barrier

to

of

treat from

ORIGINATORS

•

represents

the

movement

free

so-

new

a

a

re¬

UNDERWRITERS

(4)

The

market,

NEW JERSEY-MUNICIPAL

United

dependent upon it,
ously

damaged.

capital

States

foreign

and

PRODUCTS:

•

CAST IRON SOIL PIPE & FITTINGS

•

"CEFCO" BITUMINIZED FIBRE PIPE

•

"UNIVERSAL" CAST IRON PIPE AND FITTINGS

•

F & W

long-standing pol¬

icy of freedom for capital move¬
ments. ' i;\-/ ■: U/Y'Y
:"Yv-Y7Y7:

DISTRIBUTORS

PRINCIPAL

international

capital and is

our

THE CENTRAL FOUNDRY COMPANY

importa¬

economies
be seri¬

may

The

U.

has

S.

VENT, REVENT & DRAINAGE FITTINGS

been the only free capital market

ja

nSsjj?

in

'

- -

AUTHORITY REVENUE

which

securities

amount

the

be

and

its

limited only by

are

the

This

asset

can

is

a

which

national

of

fears

of

Part of ,the

the

Roland, SaCfin,
Gordon & Sautter

may

YORK 5, N. Y.

WHITEHALL 3-1570

Bell System Teletype—212 571-1055




-

f-'

common

paid consecutively for last six¬
Current dividend $1.00 per

—

share.

cre¬

restrictions.

"Our

Fifty-Second Year"

responsibility of being

to

keep

power
our

of the

currency

its

use.

We

must

not

impair

the value of the dollar as the

64 WALL STREET, NEW

years

THE CENTRAL FOUNDRY COMPANY

strong and free from restrictions
on

Established 1920

is

teen

interest.

further

leading financial

world

not

Dividends

convincing

(5) The proposed tax
ate

precious

should

dissipated without

reasons

terms

sell

issuer

market) place.
national

LIGATIONS

the

which

on

currency

of the world

nor

create-

fears that further restrictions may
be

imposed.

-

General Offices: 932 Broadway, NY 10, NY

key
Plant:

Holt, Alabama

42

The Commercial and Financial Chronicle

basis.

Report of the IBA

derway

concerning

Canadian Committee

of

Peace

Crookston,

President

Resident

Director

of

Vice-

and

the

develop¬
Hamilton

part

good

un¬

River, the

the

and
a

per¬

are

the

Columbia

with

the

of

developed and at least two

energy

Ian

discussions

River

Falls,

be

now

and

ment

J.

will

These

mitted,

these

projects

being

destined

for the U. S. market.

of Nesbitt, Thomson & Co. Ltd., Toronto.

the value of
This
of

report on economic develop¬

ments and financial conditions in

rables.

Canada

influencing

for

is

1963,

being

together
the

the

1962

years

submitted

and

to

you

with

additional

occasion

scene

the

dollar to

92 Vz

2, 1962.

tistical sup¬

of the Cana¬

cents

May

on

fected

af¬

immediately

measure

Canadian

relative

costs

to

dian
in

Cana¬

those

that

tinued

the

ad¬

to

the

from

vance

and

amount

could

recession

without
the

'61, although

uation upon

in

the

Wheat Sales to Russia

have

Thus

pause.

sonally adjusted index

production,
at

180.5,

August

but

months

rose

1963.

the

by

sea¬

of indus¬

which

ended

188.7

to

rose

in

the

five

ensuing

only

in

point.

one

By

In

to

the

May

been

natural
more
a

indications

resources

that

our

play

may

a

positive role. In agriculture,

number

been

of

increased require¬

junction with

index

what

ments. of

the past

of U. S. funds. This he

by

in

due

18% higher than the

was

tude

still only 195.4.
re¬

low, hence both in ampli¬

and

term,

the

the best in

as

723 million bushels will be com¬

(and to

part

of

ex¬

least.

In

pansion
based

is

on

opment.

that

it

natural

of

has

not

ondary

been

Rather it has arisen very

industry,

iron and steel

tation

sec¬

particularly

products, transpor¬

equipment,

textiles.

ex¬

devel¬

largely from the growth of

chemicals

and

Some of the basic factors

that have contributed to this have

also been influential in the econ¬
omy

the
the

of the United States, such

changing

age

population

composition
the

and

two

next

base

con¬

years

at

prices

metals,

of

lead and zinc have been creeping

this

resource

the

should

grain

as

demand has been out¬

developed,

ease

1950s

Gross

payments

The

in

I

Consumer

gas

continues

to

be

one

the

of

of

-Durable

Goods

making it

markets

to

minerals

of

which has surged ahead under the
stimulus of the National

a

to

to

at

more

of

having

the

coming to the fore again
Canadian

reversed

its

1962

III

IV

YEAR

12.3

12.8

12.7

I

II

1963

III

IV

YEAR

13.0

12.9

12.5

12.'9

Private

2.7

2.9

2.7

2.7

2.9

2.9

2.8

3.0

2.9

3.0

3.1

9.5

9.6

9.7

9.5

9.8

9.9

10.0

10.1

10.0

10.4

10.5

24.4

24.7

24.9

24.5

25.5

25.6

25.7

26.2

25.7

26.6

26.8

.

Investment

-Residential

Construction

1.4

1.4

1.5

1.5

2.6

2.6

2.7

2.8

-Machinery fit Equipment

2.5

2.4

2.5

2.5

Total

6.5

6.4

6.7

-.4

-.4

Chance

in

1.5

1.5

1.6

1.6

1.6

1.6

1.6

1.6

2.7

2.8

2.7

2.6

2.7

2.7

2.7

2.8

2.5

2.6

2.6

2.8

2.8

2.7

2.8

2.8

6.8

6.7

6.9

6.9

7.0

7.1

7.0

7.1

7.2

.8

0.3

0.2

0.3

.8

0.2

0.4

.1

-.1

-.5

-.4

.2

A

,_2

.3

.2

.3

-.1

.4

.4

1.0

.5

>

Inventories

-Business

0.4

-

-Farm

-.3

-.5

Total

-.3

-.1

2.9

2.9

3.0

3.1

3.0

3.0

3.2

3.0

2.9

4.2

4,2

4.3

4.3

4.2

4.4

4.7

4.9

4.9

7A

7.1

7.3

7.4

7.2

7.4

7.9

7.8

7.8

7.7

7.9

7.9

7.6

7.9

8.3

8.2

8.4

8.2

Government
on

Coods

-Provincial

A,

A

.5

.3

3.0

3.1

3.0

4.7

5.0

5.2

,8.1

8.2

8.5

8.9

dddb,

'i

Services

and

Munc.

^

Total

'

•:/y '•

(Goods and

Exports

%

Expenditure

and

-Federal

Services)

7.3

7.5

(Goods

Imports

and

Services)

-8.4

-8.2

-8.7

-8.9

-8.5

-9.0

-9.2

-9.1

-8.8

-9.0

-9.1

-9.3

-1.1

-0.7

-0.8

-1.0

-0.9

-1.1

-0.9

-0.9

-0.4

-0.8.

-0.6

-0.4

36.2

Exports

Gross

37.1

37.7

38.6

37.4

39.5

40.0

40.8

41.3

40.4

42.0

42.4

National

Expenditure

Gross

National

(Billions of Dollars.

in

Product,

by

W.V;

Quarters

Seasonally adjusted at Annual Rates)

y

foreign

easier for

imported

with

portance
then

domestic

compete

1961
I

Labour

structed

the

policy

tervene

in

exchange

rate,

of Finance

Income

II

18.6

Income

Central Bank to

in¬

Deduct:
Paid

in¬

Minister

Government

with

the

of

18.9

1962

III

.

IV

19.5

19.2

YEAR

19.1

I

n

19.9

1963
IV

YEAR

20.7

20.4

hi

20.3

20.5

I

21.3

the

Other

1.0

1.0

1.0

.9

1.0

1.4

1.4

1.5

1.3

1.4'

1.5

1.6

3.4

3.6

3.8

3.5

3.7

3.8

3.8

4.0

3.8

4.0

4.1

.

Dividends

.

Abroad

Income

'

r

:

•

:

'■

-0.7

-0.5

-0.5

-0.6

-0.6

-0.6

-0.5

-0.6

-0.6

-0.6

-0.5

5.3

5.2

5.5

5.5

5.3

5.7

5.5

5.4

5.8

5.6

5.6

5.7

27.2

*

-0.5

28.0

28.8

29.2

28.3

30.1

30.4

30.7

31.2

30.6

31.8

32.4

5.0

4.7

5.2

5.4

exchange market
Net

National

regard to exports on a long-term
Taxes

Income

less
/

4.6

4.7

4.6

4.5

4.5

4.6

4.6

36.2

37.1

37.7

38.6

/. "

Gross

CANADIAN SECURITIES

*

)-:• '

National

Incl.
Net

Product

5.2

37.4

5.3

5.3

5.6

5.4

4.7

4.7

4.8

4.9

4.8

4.8

4.9

39.5

40.0

"40.8

41.3

40.4

42.0

42.4

';..'•*. "•
4.5

' ;

-

-

'

.•

.

:

Military Pay and Allowances, Rent, Interest and Miscellaneous Investment
Income,
of Non-Farm
Unincorporated Business and Inventory Valuation Adjustment.
'

Income

complete facilities for Canadian
stock and bond trading
Midland Canadian Corporation
Dealers in

Canadian Securities
2 Wall

Street, New York 5
WOrth 4-5280




Investment Securities

N. Y.

DIgby 9-2850

Affiliated tvith

Canadian Affiliate

James Richarip)n& Sons

ii

21.5

3.0

.

Profits

Subsidies

Telephone

v

I

Corporate

the

13.2

23.9

Capital Consumption All.

New York 5,

11

13.2

2.6

-Non-Res,. Construction

"Ind,

14 Wall Street

'

I

difficult for

The

other major form of energy, hydro

with

and

Quarters

some¬

what slower rate after 1963.

power, is

by

9.4

Total

Farm

grow

II

12.3

Goods

premium

a

Canadian Dollar Devalued

Oil Pol¬

icy, will likely

1962,

devalued

was'

Seasonally adjusted at Annual Rates)

12.3

-Services

products.

production

2,

inward

an

compete

and

goods

oil,

Expenditure

12.0

capital, forcing the

dollar

exporters

strongest growth areas among the
but

dollar

capital

May

on

Expenditure

-Non-Durable

interest

significantly

encouraging

and

output

Natural

rising.

forced

Canada

strengthened slightly and
is

the

and

government

towards the end of

higher than in the United States,

Canadian

metal

National

(Billions of Dollars.

inflow

the

indebtedness.

and

movement

this

overnight,

correct

aggravated by mone¬

was

market, while aluminum has also
of

flight of

the

Net

thus

the

A

and

Deduct:

rates

of

it.

to

significantly the balance of

running supply in the free-world

as

rising

ex¬

the current account and weak¬

the

inability

ac¬

tary policy which was particular¬

among

Secondary Industry

An Unusual feature

to)

they

as

some

ly restrictive

Canadian

upward
Growth

1962

for

for

Canadian history.

com¬

pletely sold, and a strong demand
tinue

current

pansion must be rated

in

this

million in

of interest and dividend

ened

of the present position and

gers

the

in

the

peak

a

and

decade, financed

been

problem

cession

declined

$848

in August

This

with

theless, the consistent deficits of

on

discount

million in 1961. Never¬

international

was

1952

of capital from the United States,
Communist
taken in con¬ imposed a steadily rising burden

which,

his

use

billion. Since then

has

with

$982

tent

would

1961

pay¬

it is expected to amount to

have

he

of

with

signed

countries

have

agreements

and

erable talk of "Canada living be¬

yond its means," of the weakness
of the Canadian dollar, the dan¬

one

deficit

world, reaching

reached 195.7, but at latest report, the record wheat crop this year of

it

a

transactions

deficit

year

the

significant

a

of

consid¬

was

budget speech to

years

of

since

year

incurred

has

1959 of $1.5

the

balance

each

rest of the

pared

there

however,

recently,

might be called
had regular customers, indicates that

pattern has appeared in

same

More

j.ianCrooksW

clearly

discernible

The

deval¬

by

Canadian production.

the

current

in

took

During the general election

1962, however, there

Canadian economy

approximately $500 million

there

a

1961

reinforced

benefits conferred

half of the

trial

abroad

second

year
was

from

duty

paying

trough of '60-

Canadians

goods

back

its

1961

given rise to particular

namely,

import
Canada
in

only

in

through the winter of 1961-

62.

to bring the Canadian dol¬

power

consider¬

during the last two

reduction

the

of

bring

has

ments.

of

imposition

surcharges

con¬

the

of

concern

The

producers.

temporary

economy

1962

other

of

area

ably improved the outlook for

—

The

have

resources

was

and

of Finance

the

that

announce

down

beginning

Canadian dollar continued to

prospects in the

natural

aspect

-

This

plement.

These

of

complished

•

factor

Canadian

an

the devaluation

was

dian

sta¬

usual

But

Improved

successful

Minister

the

lar

Balance of Payments Outlook

of consumer du¬

rates

scrappage

the

at

1960, but the policy

terms

The

the'Canadian dollar.

occurred

partially

Thursday, December 26, 1963

...

Midland-O see r

Securities

Limited

Members

Established 1857

The Investment Dealers' Association

Serving Investors Across Canada

All Canadian Stock
London Toronto Montreal
Saskatoon

Vancouver

,Sault Ste. Marie

of Canada
Exchanges

Winnipeg Regina Calgary Edmonton
Victoria

St. Thomas

Hamilton
Sarnia

Kitchener

Brantford

"dr

Number 6328

Volume 198

Monthly

Selected

Economic

.

.

43

The Commercial and Financial Chronicle

.

Indicators

Monthly

Selected

(Seasonally Adjusted)

Economic

Continued

Indicators

Selected

Monthly Economic

Indicators

-

Continued

(Seasonally Adjusted)

of

Prices
-Industrial

Wholesale

Production

Employment

(1949=100)

Index

Labour

Unemployment

(Thousands)

(% of Labour Force)

income*

(Million Dollars?

Merchandise

Trade

Retail

Merchandise

Exports

(frllllon Dollars)

(Million Dollars)

Imports

(Index.

Prices

Price

Consumer

1935-39^100)

Common

(Index(1949=100)

Industrial
Stocks

f<

(Index 1956=100)

(Million Dollars)
1962

1962

1962

/

179.1

January

6.0

6,136

181.4
\

April

6,145

6.2

6,202

5.9

6,210

5.8

6,235

5.6
6.0

6,251

6.4

1,863

July

186.7

August

188.7

September

188.8

October

"

May

189.1

5.9
'

6,208

,

6,200

189.6

6,244

5.9

6,230

6.0

1.464

527

1,445

530

531

136.7

239.3

130.1

130.5

240.3

(30.5

115.4

241.3

131.0

113.8

505

October

1,474

1,496

543
525

August

242.6

September

241.9

October

241.7

November

December

131.4

120.7

131.0

117.6

131.5

113.8

242.2

131.9

121.2

242.2

•'131.9

124.0

'

499

1,518

A'"

July

524

544

December

1.730

130.3

June

528

1,466

;

November

1.729

189.7

138.6

237.4

527

553

137.0

129.7

May

567

531

September

1,723

December

561

1,439

August

1,713

November

1,454

July

1,709

5.7
5.8

6,264
-■

1,704

1,457

136.2

129.8

237.0

April

500

129.7

237.1

534

513

237.0

March

516

508

June

1,695

June

V

186.1

521

1.463

April

1,692

6,279

May

,

1,430

March

1,680

184.0

'

1,426

502

February

1,675

February

509

January

1(660

183.9

February
March

January

<1,650

486

'

1963

'7.

-

■

1963

'

/ y:...

...;

'r

V".

.;/■

1963

A/

7"7

■■<
'

189.4

6,226

5.8

191.1

6,254

5.6

6,265

5.7

1,778

April

194.3

6,299

5.4

^

1,769

194.0

/

<1,771

February
March

/January

r

May

195.7

195.9

6,293
6,351

July

193.1

6,400

August

195.4

6,404

October

6.0
,,

'

<*

242.9

132.0

February

242.7

132.1

March

576

503

March

242.4

132.1

545

April

242.8

132.3

533

May

244.4

1,795

6.0

April

1,495

May

1,511

607

June

1,525

July

1,508

542

August

1,530

/

575

557

1,800

5.6
■

.

'

J

■'

:

-

-

September

pegged at 92J/2

cents U. S. while first
made with the

were

an

since

time

>.;.

there

1957,

was

increase in the real volume of

York

make

to

available $650 million U. S. Other
were

measures

taken at the time

ever,

1957

133.9

130.7

245.2

133.4

136.0

however, the reserves came under

93 %

pressure, as

they did in the Spring
and early Summer of 1962 at the

level they

the total value in terms of
dollars was still only $8.1

The

in

1962

expected

to

time

product,

national

gross

which
is

Growth in GNP

Further

;;

being close to 4%. How¬

increase

133.5

disposal income.

equipment and housing, with the

New

132.8

246.2

capita and in relation to personal

capital expenditures on new plant,

of

•A 7,

245.8

244.7

June

137.4
•-.133.0

<

October

Bank of England and
Reserve

,

September

557
565

602

.

International Monetary Fund, the

the Federal

139.6

<

August

560

$■■■■■'

-

October

arrangements

129.0
._134.7

July

-

557

573

129.0

r

132.3

'

.

129.8

'

1,827

5.3

6,374
.

'

1

1,800

5.7

June

September

✓

January

539

534

1,504

February

1,790

'

520
500

1,510

<1.512

January

increased

devaluation, and

of

again in the Summer of 1963

did

8%, when the President of the United

by

rise by 5y2%-6%

interest

the

announced

States

which

at

end

have tended to stabi¬

lize.

they

as

month's

by

the

However,
not

nearly

1962,

fluctuation

in

interest

was

of

that

as

of

amplitude

the

and

crisis

1963

severe

as

rates

the
was

in 1963, with the increase in vol¬ equalization
tax,
the Bank of therefore very much narrower.
21.8% of
ume
terms being of the order of Canada
has
moved
quickly to This was particularly noticeable
the gross national product, com¬
in the short-end of the market.
41/2%. From what can be seen at tighten credit.
;
Beneficial Results
pared with $8.7 billion or 27.3%
this stage, there appears a good
Whereas
last
year
the average
These
From the start of 1963 until the
steps
were
successful, of gross national product in 1957.
The latest estimates of public possibility of further growth in end of July, the seasonally ad¬ yield on the three month Treas¬
but the experience had a two-fold
1964 of from 4%-4V2% in gross
month-end
effect on the thinking of Canadian and private investment /for 1963
justed money supply rose by 5.5% ury Bill tender at
national product.
to
reach $16.1
authorities.
The first was that published by the Department of
billion. By his¬ ranged from 3.07% to 5.45% be¬
tween April and June, and ended
our
torical standards in Canada this
vulnerability to a flight of Trade & Commerce projected an
Financial Conditions
the year at 3.91%, the range so
can
certainly be described
as
capital had to be reduced, which increase of 6.9% in terms of cur¬

equivalent

billion,

to stem the flow.

to

■

Financial

meant

strengthening

balance

our

rent

prices

of

payments by increasing exports

indications

or

reducing imports to the extent

of

where Canada would not need to

import

capital. We

any

com¬

are

ing close to this position. The sec¬
effect

ond

that officials were

was

pleasantly surprised at the stim¬
the
devalued
and
pegged
to Canadian second¬

gave

industry,

ary

and it is

second

a

the

the uptrend

is

tations
in

are

for

projection, but

further increase

a

tinued

quite moderate and

be

to

inventory sales ratio has re¬

mained

remarkably

steady

at

a

Government ex¬

penditures on goods and services,
going particularly at the Provincial and

from

further and from going Municipal levels, have been ris¬
up. This policy, and its implica¬ ing steadily apart from a decline
tions, have been made clearly ap¬ in Federal spending in the second

down any

the

by

parent
months

described

as

recent

in

events

the

under

half

of

last year.

penditures
companied

Spending Higher

With rising

domestic

automobiles,

plant
started

these

Indeed,

circum¬

capital spending on new

and
to

equipment
rise.

In

has

again

1962, for

may

have

Consumer

of payments.

called

being easy money, and it is there¬
no

bond

market

Do¬
throughout
for ' a
with

relatively

easy

policy, for

money

unemployment,

shown

as

in

the

high

fairly

at

between

5%

and

7 % of the labor force on a season¬

ally adjusted basis and there was

the

41/2%

ket,

Canadian industry.
there

sure

on

foreign

was

the

an

Hence

very

at

above

so

long

great pres¬

Canadian

exchange

Central Bank

supply

no

gold

reserves,

and

what

for

average

Canada
rate.

yardstick
long-end of the bond mar¬

was

When,

the

usual

approximately

from

rising

far

to

has

been

the

by

an

month

three

There

the

since

experienced
is

rate

average

three month

States,

some

for

cause

sumer

ing

as

appears

heavy

now

to

forwards

were

discount

under

occurrence.

4%%

spread

debt burden

a

counterpart in the United
as

measured

both

in

between

flects the

strengthened balance of

payments position and an under¬

89 %

in early September. In ISep-

taking by the Bank of Canada not

on

however,
The

change.

bond

July

there

17

was

a

1983

recovering

to

increase

the

again to

and

Continued

around

per

Canadian Securities
Underwriters and Dealers in Canadian

Corporate Issues

Inquiries invited from institutional
investors and dealers

Limited

UNDERWRITERS AND DISTRIBUTORS

Affiliated
sixteen cities in

Greenshields & Co Inc

and Montreal Stock Exchanges

64 Wall

offices in

Street, New York 5

Canada, England and France

Teletype: 212 571-1723

Telephone: WHitehall 3-9525

- -

Canadian

A. E. Ames & Co.

Business established 1910

Affiliate: Greenshields Incorporated

Incorporated
MONTREAL

Two Wall Street, New York 5, N. Y.

BUSINESS ESTABLISHED




1889

TORONTO

WINNIPEG

NEW YORK

VANCOUVER

LONDON

SIIERBROOKE

of

gold

foreign exchange unduly

his

A. E. Ames & Co.

reserves

market ; im¬

proved noticeably with the 41/2%

Government and

Members Toronto

in

to

93

from

con¬

A. E. Ames & Co.

interest rates

fell

of

Investment Securities

unusual

1983

of

Canadian

day

slight

Canada and the United States re¬

States,

debt

spot—an

90
a

This narrowing of the

carry¬
as

S.

quoted at

concern

be

Canada

bills in the

and U.

1955.

in the fact that the Canadian

the rate

on

United

in contin¬

.

of

bills-in

that

ex¬

expansion

from 3.19%

only ten basis points above

upwards.

The Government of Canada

1963

was

credit in July

rates

interest

in

3.71%. In November,

on

early in June.

The tightening of

the tember,

expanded the money

period
government of Canada
this

of

most

92% to 94j/2

good deal of excess capacity in forced

the

generally firm

was

1983,

for the

that

surprise

fore

remained

also

rise by 81/2%-9%

uation

at growth

textiles and
output is pressing

Under

capacity.
stances,

in¬

chemicals,

steel,

have

by developments

conditions

mestic

Canada

years

credit, which this year

consumer

strong

operating

higher ratios of capacity.
in

a

Canadian

been

has

dustry

exports and

market,

two

strong, although this has been ac¬

heading of financial markets.
Capital

conditions in

past

balance

our

as

be defended

both

in

a

fairly low level.

exchange rate must

the

accompanying table, has remained

1964.

Inventory accumulation has con¬
the

during

been determined
a

welcome contin¬

a

icy at the present time that the

prevented

fall

may

uation of that of 1962 and expec¬

cardinal feature of Canadian pol¬

and

value

actual

put in place

little short of this

ulus

dollar

work

There are

1962.

over

that

OTTAWA

QUEBEC

LONDON, ONT.

on

page

by
44

The Commercial and Financial Chronicle

44

15

•

Capital

Expenditures

(New Construction and

Money

Canada

tn

New Machinery

and

Supply and

Chartered

.

.

Thursday, December 26, 1963

.

Miscellaneous

Bank Statistics

Day-to-bay
Loan

Money Supply
1957

Primary Industries

1958

1,270

1959

997

1960

1,074

1961

1,134

1962

1,211

1,322

Average

Cash

Reserve

Current and Chart.Bank
Deposits (Av. of Wed.)

1963*

Ratio

Asset

(Percent)

General

Liquid

Average

Ratio

Loans

(Percent)

3.04

January

January

13,722

8.2

February

13,722

8.1

18.2

4,997

March

March

13,827

8.1

18.2

,5,038

April

5,106

Industry)

17.4

April

1,178

1,085

1,231

1,414

13,797

8.1

13,833

8.1

Utilities

2,313

Trade,
Heal

2,153

1,842

1,772

719

705

833

875

Services

1,698

1,633

17.7

''•

847

14,404
:

September

849

14,432

October

November

14,702

December

and

Commercial

Services)

'

.

Business

Capital

5,728

4,950

4,893

4,959

1,415

Institutions

1,782

443

1,752

514

1,456

536

573

617

8.2

18.8
19.0
18.7

8.1

February

14,907

March

15,062'

5.08

98.69

2.57

4.81

103.50

2

5/8

2.55

4.86

103.9

4.83

103.12
103.00

U

\

21

2.50

4.69

3

2.99

-*-7i

December

21

3.07

21

3.21

March

3

3.12

8.1

17.1

June

6,170

1,366

8.2

15,397

'./V,;;

15,076

15.5

8.1

:■:

Expenditures

8,721

8,364

8,417

8,262

8.1

15,128

8.2

15,286

8.1

18.3

15,481

8.2

18.1

November

8,172

.

14,968

October

8,738

9,341

..

December

16.1

6,688

4.95

1/8

:■<

4.61

31

105.00

109.00

5.33

'

,1963

107.81

5.38

■

5.35

107.72

-

107.66

,

~

4.90

3.71
3.91

107.56

4.78
'

107.69

y

4.88

107.72

January

31

February

31

March

31

April

3

'

'

■-k'

-

'

6,477

5/8

7/8
'

3.65
3.68

4.90

107.78

4.98

107.72

3.62

5.01

107.81

3.66

4.90

107.59

3.19

4.82

'

y'yk

1963

January

February

*Based

on
the mid-year review of investment intentions
published
by the Department of Trade and Comnerce.

March

8.1

.

15,692

May

17.8

June

15,9.73

8.1

July

16,123

8.1

17.9

16,055

8.1

17.0

September

A

16,086

8.1

6,633

17.2

;

18.5

be

Canadian Committee
Continued

from page

42

was

subsequently modified, being

attracting capital from the U. S.

reduced to 4% for the time

market.

and

-

-

gradually scaling

up

11%

to

Business
The

the

Minister

13

was

and

of

of

construction

down

Finance

rather

a

certainly

deal

Stimulated

brought

budget

June

on

confusing
rise to

gave

confusion.

A

dustries

granting of

good

writeoff

proposed

tax, to be paid by the

dor,

on

of large

was

equipment in

where

ven¬

blocks

on

a

the

25%

are

two

the

by

encouraged

a

after

20%
are

complete

year

broad class of assets

companies

concerned

Canadian owned. Where

108.28

4.90

107.78

1

by

Quebec

Hydro.

resulted

tirement

the

of lesser

of

2i

in

stock

common

'

3.56

This

net

a

nature

1964.

developments of

this year

lishment

a

31,

There

ing

of

last

Old

a

the

main

factor

the

,

out¬

first

chases

large part

a

financing

new

for in

market.

all

months

six

net

ranged

here

;

.

of the

re¬

significantly higher than

year,

million

Fund,

heavy

the

Trans-Canada

financing

by

the

ar¬

was

United

States

Indeed, net foreign pur¬
of

kinds

year

Canadian
in

the

of

securities

first

half

amounted to $541

Since

Pipe Lines. During

of

the

the

million.

announcement

df

the

Mu¬

by

of

Balance

Canadian

increase

an

Pension

Age

being

fiscal

the estab¬

were

$400

a

Loan

the

was

107.81

importance.

Other

in

Dec.

number of other resolutions

a

nicipal

activity.
on new

manufacturing and processing in¬

one,

a

30%

the sale

Spending

by

however,

5.12

withholding tax will be raised to standing. Corporate bond financ¬

being

in order to cushion the impact on

established,

cannot

'108.16

3.71

3.24

also

Quebec
action

control"

4.89

31

>

107.81

3.43

k

6,692
6,821
6,913
6,942

15%; where "a degree of Canadian
and

4.77

21

September,-

ownership

Report of the IBA

2

August

6,461

3

July

6,422

August

J

May
June

6,336

,

18.3
17.5

8.1

' V.

',

6,369

18.4

8.1

15,551

'

;•

18.2

8.1

15,513

April
.

8.1

15,422
15,470

..

*

108.19

5.41

'

4.16

31

December

105.00

4.83

"

'

4.99

4k

104.69
105.03

'

6,562
,

t

4.77

5.47

5

November

6,741

17.5

„

•,

1

104.34

4.67

5.45

41

September
October

6,692

September

41
5

August.

6,650

15.6

•'.•••■'

:•

""

July

6,013
,6,410

.'3 7

104.28

4.75

;

3.52

17.1

August

103

-V'k

'

3.07

21

16.1

July

•'

3

8.1

Total

4.82

:

April

8.2

1,310

4.88

v

1962

May

15,499

1,247

2.59
2.50

..'November

5,748

15,509

1,274

2.26

/

3/8

5,856

May

1,236

'

2

18.0

8.1

'

98.87

3.14

3/8

18.0

■

.

'

„

15,229

April

887

98.91

21

21

5,687

June

1,118

5.12

February
17.9

(Schools, Universities, Churches,

1,133

5.15

September

5,656

8.1

5.07

5,642

8.1

98.75

3.11

'

5,582

8.1

,

Hospitals, etc.)
Government Departments

Month)

99.03

3.28

.

-

1,643

808

for

5.17

,

October

5,539

14,973

5,445

1,587

1,467

of Month

2

August

5,564

15,035

January
Housing

Dollar in Can.c

(Spot Closing Race

July

1962

•'5,033

4,841

Exchange Rate

US

June-

5,452
:

18.8

"

•

'3.21

21

■,

January
Total

Wednesday

31

!

v

,,.May

5,341
: "y

18.9

8.i

rV<;. 14,488

Insurance
Other

Finance,

Estate

,;

jif''.1*

18.3

8.1

-y

'

21

February

5,195

18.3

8.1

14,104

August

847

8.1

13,938

July

1,819

A

5,001

17.3

May
June

Commercial

Canada

41% Sept.1,1972

(Closing Market Yield
Last

1961

1,363

(Agr. Fishing, Forestry, Mining

1,144

of

Covt.

on

91 Day Bills, last
Thursday of Month)

)

Wednesdays

Quarrying and Oil Wells,

1,095

(Av. Tender Rate

of Month

Wednesday

Construction

1,426

Treasury Bill Yield

Rate

(Closing Rate,last

(average of

1961

Manufacturing

Statistics

Financial

(Millions of Dollars)

Equipment)

International

Payments

Dollars)

(Millions of

$10

month to $75, and the announce¬

ment

of

Federal

a

"pay-as-you-

1963

1962

g0"kpension Plan and

Canada

a

1959

1960

1961

Half

1st

Half

2nd

Year

1st

Half

Development Corp. No legislation
has

yet

last

Current

two.

been

introduced

the

on

Account

Merchandise

Exports

Merchandise

Imports

5,150 5,392 5,889

3,015

3,349

6,364

3,241

3,067 ,|

3,142

6,209

3,106

207

155

135

-136

86

-50

-93

-561

-299

-271

-570

-434

-208

-175

-383

-193

-982

-695

-153

-848

-439

'

of

shares

to

non-resident

interests

controlling

or

controlled

a

where

firms

subsequently withdrawn after

strong objections had been voiced

stock

the

listed

was

by

the financial

community

sharp drop had occurred in the

a

stock

market.

sales

tax

A

building

on

of

25%

voting

shares

recognized

a

exchange and

the

owned,

owned

voting

shares,

were

Canadian
one

non¬

than

75%

no

more

with¬

the

10%

materials

from

the

previous

The effect of these

or

holding tax has been reduced to

11%

proposed

on

resident

and

is

company

level

of

the

.'

Canada
'

1

■'

(Incl.

-

A'".-,

;

/'

Of Which

the current fiscal year,

ate

increase

and foreign

be

Finance

Corpo¬

Corp.,

Co.

rate

New

in Foreign

pal

cial

etc.

Paper

Stocks

Issues

Currencies

7

249

40

14

8

139

-47

153

III

235

359

A

124

IV

639

187

118

48

1962—
I

II

•

,

37

145

14

—251

146

k

72

—

k 'Net

Payable

65

72

448

IV

164

510

5,540 5,716

-422

-148

173

-52

-207

-207

-160

-489

-480

-286

-408

■1,504'-1,243

Expenditures

Interest

gold

••.

an

deficit

of

■

-

$680

&

Div.

(net)

-i

-■

Other

':

Receipts/Payments (net)
Account

Capital

Account

Balance

overall leash deficit

These

compare

—83

45

683

respectively

—32

935

—15

y.

'-/'y

'

43

44

44

252

—62

225

36

99

327

—4

26

33

1,121

146

65

157

1963—

:

175

61

207

460

77

36
.

S.

U.

'

Net

k.

new

issues of

k/

46

25

1,881

be

1

about the

vincial

in
309

320

961

are

approximately

been

-280

'

600

435

-J130

295

425.

115

182

236

103

285

388

572

201

>

470

449

(net)

in

(net)

Outstanding

54

103

-57

5

-52

-47

172

-30

-

Securities

of

v

Cap.

/■

,

,

Movements

i

;

281

336

400

-448

620

33

32

37

10

112

-

-

Canada

'

Loans

expected to

$2.5

Private

billion,

Inter.

by Govt,
Fin.

of Canada

Assistance

(net)

/

■

707

y

-377

122

k

same

level

as

1961,

Pro¬

government financing has

sharply higher this

large

measure

year

39

-229

250

k-787

-537

-177

1,504 1,243

982

695

153

848

439

70

Change in Exch. Reserves, *
Net

Capital

Movement

due

to the acquisition

300

of

the

private electric utilities in

*Minus

sign

indicates

increase.

Canadian Securities

INCORPORATED

With

Trinity Place

or

Without American

Affidavit

NEW YORK

*

CANADIAN INVESTMENT

TWO

LIMITED

Established 1920

King Street, West
Toronto




AAAA/AAA AAAV.

Burns Bros, and Denton Limited
BELL,
,

Members

V

Affiliated with:

AFFILIATES

LEGGAT,

V

BROADWAY, NEW YORK 4, NEW YORK, DIgby 4-3870

SECURITIES

BELL, GOUINLOCK & CO.

Members: The Investment Dealers' Association

GOUINLOCK

LIMITED

Montreal

Stock

330

6

-

slightly higher than in 1962 and at

352

43
-

securities, in¬

Government

cluding

'

94

450

121

Investment

Security Issues

Trade

Interest

BELL, GOUINLOCK & COMPANY
74

Cdn.

Other

135

90

—101

of

Direct

fiscal

ending March 31, 1963.

year

securities, in 1963

13

I

the

Equalization Tax

V

85

II

for

Canadian

64

—25

302

44

-288
/

y

.

Current

44

32

—

of

reserves

with $709 million and $1,467 mil¬

—57

2

—

'

III

in

million.

Impact

,

Travel

exchange, is likely to

budgetary

a

million and

1961—
I

taking into

5,572

V; k

Balance

consideration the expected moder¬

lion

Munici-|

Provin¬

Bills)

Total

'r

—Bonds—

Treas.

II

Trade

i

Govt, of

'

on

government's finances during

of $1,115

'

measures

The Toronto Stock

Exchange

DIRECT

of Canada

Exchange

TELEPHONE

WIRE

TO

CANADA

Montreal
TORONTO
WINNIPEG

MONTREAL

OTTAWA

HAMILTON

CALGARY

VANCOUVER

NEW YORK

Volume

interest

Number

198

equalization

President

of

the

however,

recourse

tax

by

United

to

,

Net

the

issues

new

.

.

The Commercial and Financial Chronicle

.

New

sales

Summary of Report of

Municipal Practices Group

Ca¬

nadian securities in the second half
of the year have been almost en¬

tirely

absorbed

market,

with

in

the

almost

Continued

of

the

(d)

total being represented by Canada

Savings

the

from

Summer

the

kets
as

in

tax,

Canada

having

view

described

be

fairly

stable.

continued
balance

we

would expect inter¬

est rates to move

of payments

United

States

during coming months;

Respectfully submitted,

J.

Ian

New

&

McLeod, Young, Weir &

tions

New

viola¬

a

sales.
or

which

determine

dealer

concession

We

suggest
in

appearance

Managers

a

on

spe.-

to

dealer-banks

(ii)

defi¬

not the

or

extends

to

reve¬

in

violation

a

of

(iv)

members

(b)
the

A. E. Ames &

a

the

to

by
to

a

a

the

of

ex¬

bonds

syndicate

him. The term

period of 24 hours after

and

"initial
as

a mem¬

pal
this

Canada

W.

C.

Canada
&

sults

Montreal, Canada

-

New

vestor—the
non

Dominion

into

form

evolved.

proc¬

The

in

with

two

Securities

Corp.

York, N. Y.

(a)

In

manager

acts

as

bonds

agent

for

received

account,
on

page

Harris & Partners Inc.
"v

7v.

,

20

'.7

"

•'

'

1

•

•

'

•

7 is

.

Exchange Place, New York 5
Tel. WHitehall 4-0731

Affiliated with

Harris & Partners Limited

obliga¬

an

that

as

55 Yonge

equally fair

com¬

basic

dealer

large

in¬

and

the

bank

bank.

These

Montreal

2

London E. C. 3

•

the

toward

lead

52 Cornhill

1155 Dorchester Blvd. West

proce¬

for

all
To

securities

of

do other than to insure such fair¬
ness

to those involved is to invite

criticism

deserved

well

as

as

both

from

outside

our

in¬

dustry. Practices currently in use
such

permitting escalation

as

orders,

auctions

and

during

of

NESBITT, THOMSON AND COMPANY, LIMITED

order

the

Montreal

Head Office 355 St. James St. W.,

orders,

reclassification of

Members: The Investment Dealers' Association of Canada

period do not always do this.

needs

new

AND

the in¬

committee believes

procedures or

NESBITT, THOMSON & CO.

strengthening of old ones that are
consistent with the, above

general

sale

of

priority orders, pre-

are

orders, members'

recommended

mittee feels

are

that

the

.

Direct

Toronto Stock Exchange

Exchange
Hamilton,
and Victoria

private wire service to New York City, Toronto, Ottawa,
,

Branches

in

other

principal Cities of Canada

Affiliated with

with

NESBITT, THOMSON AND COMPANY, INC.

-

BROAD

60

(I)

Stock

Kitchener, London, Ont., Winnipeg, Calgary, Vancouver

com¬

in harmony

these criteria.

Exchange,

Canadian

principles. Under the four natural
divisions

Stock

Montreal

Members

STREET

Priority Orders

/

r

•

NEW

■

Teletype 212

YORK

CITY 4

571-0286

The committee recommends the

(a)

Continue

Dealers in

Canadian Government, Municipal, /

7/7

practice of
the allowing net buyers to designate
the

Street, Toronto 1

Tel. 362-5751

member—the
the

and

should

dures

7

following specific procedures:

allocating

the

Continued

would be confirmed

that maturity

of

members

all

maturity, all bonds in

of knowing

was

The manager should advise

(d)

orders; however, if a conflict ex¬
ists in any

business

account.

the

by

priority over designated

that these alloca¬

conflict

what group

would

of

orders and
direction which sales at down prices, certain pro¬
taking; it is cedures in the allocation process

allocation

believes

is

principles, namely:

'

no

orders

circum¬

results
are

large

dealer

-

tion procedures often produce re¬

Company,

George P. Rutherford
The

have

mittee

Pitfield

and

committee

the

over

our

esses

S. Morse

is

change

which

Mills, Spence & Co., Limited

the

over

concerned

Arnold B. Massey

Toronto,

occurred

distribution

the

industry.,/ The

uneasy

Greenshields Incorporated

Eric

have

allocation processes of the munici¬

York, N.' Y.'

Montreal,

in

postwar

the

investor

The

Allocation Procedures

changes

Many

Dudley Dawson

net

period; in this way mem¬

have the benefit

will

single priority cate¬

a

Group

the

and

classes of legitimate investors.

statement

public

under

possible

and

small

bona fide initial within

Syndicate

Co., Incorporated

have

Have

its allocation processes,
produce

as

dustry
Canada

(b)
gory.

to all concerned—the small mem¬

Limited

New

to-

much

ber knows his allotment.

Andrew G. Curry

of

bers, when putting in their orders,

the

on

treatment

similar

under

In

a

a

Bell, Gouinlock & Company

tainly simplify the allocation
process).

whole,

a

the account

industry is

tion

Bona Fide Offering

offering" might be interpreted

Irving H. Campbell

as

the

Public

Orders

executed

on

all

Utility & Industrial Issues

Canadian stock Exchanges

■

or

at net New York prices

INC

Canadian Bonds and Stocks
ROYAL SECURITIES INC.
Two Wall

Underwriters and

Street, New York 5

Canadian

Members New




Avenue, New York 10022

Buffalo, New York

Portland, Oregon

SERVING

INVESTORS

FOR

SIXTY

YEARS —19S3

ROYAL SECURITIES COMPANY
Principal Canadian Stock Exchanges

244 St. James Street

Seattle, Washington

Affiliates:

Underwriters and Distributors

Member:

STREET, NEW YORK 10005

320 Park

—

Dominick

York, American, Midwest and Toronto Stock Exchanges

14 WALL

Chicago, Illinois

&

WOrth 2-0805

ROYAL SECURITIES CORPORATION LIMITED
1903

Dominick

-

Distributors

of Investment Securities

ac¬

cepted during only the first half

stances.

syndi¬

member is

split order period in

the

between

insure, equal

availability

syndicate letters

a

priority orders will be

minimize

(i)

obligation

an

belongs to

erly

terms.

allotted

Toronto, Canada

Toronto,

which

cer¬

agent. These

as

the account

avoid

ber

syndicate account by

would

pertinent information which prop¬

The practice of going short

bought
Sons

choice

this

part of customers to the manager

bonds.

offering
&

of

terests of

pected to make

L. L. Bell

profit derived specifi¬

admitted

price.

(c) Adopt

and it is

permit them

manager's sales force and the in¬

to the effect that

Montreal, Canada

no

interest

dealer

a

should

granting of the dealer concession

their

Co., Limited

adopts

manager

designed to insure that

should

Managers should incorporate in

Beaubien

Richardson

to

who, in his

and therefore who may

receive

(13)

York, N. Y.

James

members

known

any

manager

criteria to

er-banks

Ashplant & Co.
S.

not

at the net

will perhaps pre¬

managers

that
might be
created
by the
discretion, may notify the account
manager in accepting and allocat¬
of the violation and the violator.
ing against priority orders, (hi)
(b) Managers s h o u 1 d set up insure release to the account of

considered

L. G. Beaubien &

,

the

viola¬

syndicate

members;

report

tions to

cate

Frederick B. Ashplant

the

should be

cally from his acts

pro¬

be

principals. In short the pro¬

cedures

member of that account should be

Toronto, Canada

Andrew

by

bonds

Limited

B.

account deserves

against

,

must

the best interests

subordinated to
of his

acts

he

interests

separate

own

respect

fiduciary and his

a

procedures

The

(a)

tection

(c)

Securities

as

conflicts

nue

Gunn, Sec.

somewhat

there is

Terms

Company, Limited
Montreal, Canada

F.

in

act

meeting.

nitely specify whether

York, N. Y.

Midland-Osier

to

a

Observance of Syndicate

(12)

directory.

Co., Inc.

George C. MacDonald, Vice Chmn.

Edward H.

but

appoint

discretion

cific list

Taylor, Vice Chmn.

Gundy

limit,

to

at the final

member

7

Toronto, Canada
Wood,

with

proxy

him

banks the account considers deal¬

Crookston, Chairman

Nesbitt, Thomson and Company,

Garrett H.

allow

his behalf

some

COMMITTEE

Limited

pre-meeting

a

should

broadly in line should

the

CANADIAN

filing

improve¬

position,

in

im¬

not

member the necessity of

In

the

those

should

=

mar¬

ment in

with

Managers

arising

financial

can

been

the

of

months

budget and the interest

equalization

25

page

pose on a

Bonds.

Apart from the brief crisis dur¬
ing

from

their proxies at the final meeting.

this

In

account.

Canadian

half

fer

out for the benefit of the account

priority orders (although

on

some

non¬

of

45

J

the

States,

York market has been almost
existent.

6328

IS

West, Montreal 1, Canada

offices serving investors

throughout Canada

as

46

46

The Commercial and Financial Chronicle

size of the order in each maturity,

Summary of Report of

:

;

the

provided

by

promptly
of

all

from page 45

possible,

as

priority

amounts

maturities

and

dealer

the

have the

purchases.

(i) Allow

(e)
dealer
sales
to

concession

as

ceive

designated

a

committee

(2)

Pre-sale

that,

on

a

priority basis and

themselves

the

In |as

re¬

designated

much

and

taken

has

disclosure

all

members

place at

a

that that

ority

tention of the institutional account

is to

period

even

mediate

purposes.

confirmation.

(i) In the event of conflict,

(g) Discontinue the practice of firm

orders

group

(h) If an account sells bonds at
should the member offer less than list price against a bid,

sell

or

to

the

customer

at

list

it

should

not

permit

a

member

who holds bonds of like

maturity

outside the

meeting,

price.

cally match the sales price

selling

to be

appears

that prevents

reason

from

there

no

We make the

the account

bonds

following specific

to recommendations:
(a) A manager

pre-sale

sale

at

down

a

sequent

sale

the

the

of

nature

He

must

on

obtain

his
the

initial

the

on

price

at

bonds.

own

automati¬

account's permission to do this.

at whatever

The committee recommends the

account to

or

Conclusion

sub¬

a

lower

a

price

obtain the

It

is

hoped that the foregoing
will be accepted by managers or
will stimulate them to devise other

allocation
with

procedures

their

consistent

obligation to account

members and the public investor.
It is also hoped that
managers

order—

account should authorize the man¬ will make these procedures avail¬
"going away" ager, in his discretion, to permit able to members in.written
form,
or whether they will be re-offered further
either in the syndicate letter or
sales inside this limit.
im¬ in the
street; whether the bonds
(b) The same sort of disclosure separately.
will be sold net or at a concession; mentioned above
under Pre-sale

con¬

rata to the

pro

meeting to discuss

whether bonds

are

though

the order is predicated upon

the bonds for investment

use

order

a

sales have taken place at a down

know

bonds before the end of the pri¬

in¬

the

call

sented by proxy at the final price

present

a

members

the future of the account.

should

implicit in the granting of

of

ager to

approval of a
priority status that the intention of reclassifying the size of his order following specific procedures:
majority participation in the ac¬
or making it all or none
o use
during
(a) A bona fide polled vote of count.
Obtaining this approval in
the bonds for investment purposes. the order period with the obvious members should be taken on con¬
a
large account can involve a
intent of insuring allocation of
firming pre-sale orders.
(f) Limit priority orders to bona
major effort, so when a limit is
his full' order. It is also recom¬
fide
institutional
accounts
and
(b) Members are entitled to established by the initial
sale, the
mended that managers not confirm

priority status

believe

we

number

should be able to petition a man¬

price below syndicate terms; (iii)

the institutional account is

make

pointed out before,
sufficient

price without disclosure that other

buyer from

a group

sale

a

of

to

relationship with his customer is

price it wishes.

(h) Prohibit

that

lack

manager

placed

all members of

as

are

whomever it wishes

any

occasional

the

Thursday, December 26, 1963

.

or repre¬

the account

exists.

(ii)

considers

syndicate should

right to place investment

the

Indications

the

at

however bank

Orders

sales credit, provided no conflict

credit, and perhaps limit it

something less than

The

orders

than the

no more

investment

concession;

members of the

their

of

for

orders

names

and

in

.

the jeopardy in which a member's

allowing banks to place priority

the

buyers

factors,

manager's judgment, don't weigh
against this method.

Municipal Practices Group
Continued

other

.

whether
dealer
closure

the

not

or

buyer

of

is

Respectfully submitted,

Orders, as to the nature of the
order, should be made to the

will

information

this

a

Dis¬

etc.

dealer-bank,

or

members.

SPECIAL

COMMITTEE ON

MUNICIPAL BUSINESS

permit members to base their de¬
cision

PRACTICES
(c) Members should be notified
practical questions of
all cut price sales to protect
Alan N. Weeden, Chairman
Is
them with' their own customers.

the

on

—does the order help the bid?

KIPPEN & COMPANY INC.
'

.

;

j

:■

-

.

/

■

Members

Montreal Stock Exchange

deal?

Canadian Stock Exchange

'

a

group

1155 Dorchester Boulevard West

(d) If

New York —Direct

private wires

—

Montreal 01-2440

Toronto

against

who want to

share

in

the

Members' Orders

should

(a)

KING

HAMILTON

rata

pro

TORONTO

cut

a

price,

given

F. W. Craigie

& Co.

Richmond, Va.

Donald C. Patterson

be

considered

accepted

other

a

account to be

(f) If

the

for

to

seems

participation

Chemical Bank New York Trust

Company

bonds

to be poor

appears

procedure for

ac¬

an

rejected be¬

or

outlets

by

buyer's bid to

New

Russell E. Siefert

shopped.

later

sales

at

the

same

.

Stern Brothers & Co:

a

against

York, N. Y.

an

Kansas

City, Mo.

Walter H. Steel

Drexel & Co.

to

this, the account

New

at

of

(iii)
of

all

an

or

Strip

who

num¬

orders

gets bonds
order

none

flicts with members'
be left to the

(ii)

preference, (iv)

no

question

order,

the greatest

move

bonds,

should receive

PORT HOPE

& Co.

Walter W. Craigie

ma¬

If the buyer doesn't want

The

CORNWALL

at

been

price.

where
WINNIPEG

has

signed to

of Canada

Telephone: 364-1131
WINDSOR

York, N. Y.

Managers usually should allocate
against orders in a manner de¬

Winnipeg Stock Exchange

STREET EAST,

The method that

rather than to size of

ber

7

(i)

flict,

Members:

New

the manager

bid is rejected by an ac¬
most correct is allocation maturity count, the
buyer should be allowed
by maturity and, in case of con¬ to leave it in to protect himself

Toronto Stock Exchange

The Investment Dealers' Association

bonds

tried; it

are

following specific procedures:

Limited

The

of

sale

count and

The committee recommends the

/

into

a

down.

(3)

Co.

comes

a

jority approval by the members,

fore

&

notification,

pre-sale confirmation of

a

is

others

take

Walwyn, Stodceu

Weeden & Co.

such

has no right to claim that his own
William G. Harding
take down by pro-rata share of the bonds be
Coffin & Burr
a
member or group of members
sold to him at this price (on the
Boston, Mass.
and not against a definite order,
theory that the syndicate agree¬
then any other member of the ac¬
ment stated that pricing of bonds Henry Milner
count should be permitted a share
would be done by the majority
R. S. Dickson & Co., Inc.
of the bonds in the ratio that his
interest of the account.)
New York, N. Y.
participation bears to that of the
.'(e) A bid for a block of bonds
bonds

Telex:

sale

order, with the right which

to designate ^credit if he chooses.

/

to

pre-sale order is placed to take down bonds at a
higher Frank C. Carr
by a group buyer who has re¬ price, he should be told of the
John Nuveen
quested that he be covered only cut price sale,
v
Chicago, 111.
by the manager, his name should
(d) A member who objects to
be disclosed and the order treated
as

Montreal 2

prior

a

a

The Investment Dealers' Association of Canada

Telephone: 866-5761

If

-

,

member

(c) If

Established 1922
,

confirmation of the bonds best for
the

con¬

orders must

manager—in general

do

owe

him

a

no

later date to accept another

(g)
a

force
count

It doesn't

same

price.

manager

on

any

to

bid

poll
the

deems unreasonable.

the non-qualified order should get

Franklin

right to
the

Stockbridge

Security-First National Bank

-

Los

reasonable

seem

member to have the
a

York, N. Y.

obligation if it chooses

buyer's bid at the

for

to

seems

Angeles, Calif.

Chester W. Viale

ac¬

L.

manager

However,

F. Rothschild

New

as

&

Co.

York, N. Y.

preference, however.
(b)

member

A

should

not

be

confirmed bonds before the end of

r

the order

period

order

predicated

is

though his

even

early

upon

confirmation'.

(c)

Societe de Placements Ltee

It

manager

is

only for take down;
all

certain

is material

Societe de Placements & Cie Ltee

nor are we

whether
so

long

Montreal

the

as

The

■'!

Dealers in Investment Securities
,

25 Broad Street, New York 4, N. Y.




HAnover

5-2020

an

extensive investment service in all

Canadian securities including latest
quotations

at

question

and

bona fide

a

prompt execution of orders in American

funds.

Sales at Down Prices
of

process

selling

Our Canadian affiliate maintains offices

wire service.

a

painful process for syndicates

and

never

free

from

who feel

paid

on

conflict
a

down

salesman

has

function

and

commission

unless
same

problems.

sales

those

should

those

Broad

HA 2-9250

because

TWX: 212-571-0540-1
An affiliate of

a

W. C. Pitfield & Company Limited

useful

a

who
not

-

Street, New York 4, New York
|

should be

performed

coast-to-coast

W C. PITFIELD & CO., INC.
30

(i) the

are:

between

commission

a

1

bonds

against bids at less than list prices
is

Among these problems

Placements, Inc.

We offer

or

in leading Canadian cities and

universal

International

order

an

offering is required.
(4)

•

Securities

the

v

275 St. James St. West

845-6162

for

member's

a

subscription is against

Montreal, Toronto, Quebec, Sherbrooke, Rimouski

-

feasible

determining whether

Members Investment Dealers Ass'n
of Canada

Members: Montreal Stock
Exchange
Canadian Stock Exchange

not

to have responsibility for

feel

be

all members enjoyed
right to solicit the bid;

a

paid
the

(ii)

T7 offices
wire

across

system

Canada and

covering

all

a

direct

Canadian

private

Markets

Volume

198

Number 6328

.

.

The Commercial and Financial Chronicle

,

the

The SEC After the

Special

public.

and

we

In

so

certain

Study of Securities Markets
Continued from

11

page

tomers, the

matter

minimum

of

closure to unlisted securities hav¬

capital requirements, and controls
over distributions. Turning to the

ing

exchanges

objectives: namely, to extend dis¬
broad

a

public

to strengthen

interest

and

qualification stand¬

order

have set

we

of

business

the first

as

the

questions

the securities business. We believe

involving floor traders, odd lots,
specialists and automation; and

that improvements in the securi¬

with respect to the NASD—quota¬

ties

tions,

ards

controls

and

markets

best

are

combination

the

those

over

in

insured

of

by

to

sons

information
sure

the

on

I

am

drawn from this effort. It is pos¬
sible

to

evolve

public

interest.

exchanges
listings

stature.

NASD

will

obtain

for

support the

you

these

alone,

reasons

but because it will raise standards
and

serve

the interests of the in¬

public.

vesting

To

that

end^ the

NASD, for example, has stated its
clear

willingness

to

the

assume

additional responsibilities and the
added

which

burdens

this

legis¬

priorities,

discussions

endeavored
for

dates

the

to

of

Study's

the

and

the

them

furnishes

thus

bill

constructive

a

has

best

and I

the

with

forward

involved

problems

changes which

in

and

we

without

make

The

dations.

mendations

gamut:

specific
this

in

fall

re¬

the

markets,

the

cover

industry,

Commission

v/;/

..

this

been
your

upon

pressed

our

have

so

far
ex¬

we

views regarding the

Study's recommendations in three
letters

to

the

dicated where

Congress.
we

and where

Study

believed

problem warranted further
ination.

Further,

certain

lished

in¬

We

agreed with the
we

we

a

exam¬

have estab¬

priorities

principles to be observed

certain

pitfalls

Some recent

to

avoid.

public statements by

industry leaders with

respect

to

which

I

con¬

carrying

idle.

number

upon a

of the Study

of

I shall

questions

not

unmindful

not

industry's

for all of its
and

change

possible ramifications

repercussions since the securi¬

ties

markets

are

delicate

a

and

to

the

with few exceptions,

responsible

a

them.

of

There

one.

is

contribution to the

your

legislation

but

willingness

your

review, to study, and to evalu¬

ate

the

have
to

recommendations.

allowed;

dominated

perhaps

be

emotional

thinking

your

what might

by

understandable

an

reaction

must The issue is
of

emphasis,

of

one

and

of

must

we

we

degree,
genuine

a

desire to effect changes which are
needed. The fact that a problem
is

intricate does not
be

can

criticism

to

changes in tradi¬

ignored. We must be

like

offer

to

departure
first

place,

the

Study

manding
Neither

the

has

exposed

serious

to

ule of priorities were

detract
the
to

from

the

idle for

action.
Congress
a

sched¬

intended to

pre¬

cliches.

If

.recommendation
strikes

you

afford

the

of

the

Study

impracticable

as

problem

to

particular

a

with

that

mean

which

or

it

tempts to deal should be left

We

by

by taking action, in a
to
support
the

of

were,

this

examined

and

prompt
to

response

particular

situation.

rules

to

prevent

it.

Fresh

less than perfect from

point

of either

broken
are

of

those

into

down

industry-wide

those

which

concern

and

which, while of importance

to all, relate to

regulatory

a

particular self-

agency.

In

the

category there is the vital

first

area

of

tions.

out

or

a

relationship between

broker-dealer

and

his

cus¬

through

views.
out

Study's recommenda¬

know,

discussion

selling practices which go to the
heart of the

I

as

a

Nevertheless,

are

the

of

gave

imaginative

tion which has

public. For example,
as

body

a

to the

not

devoted

be

general problem. We should

wait

for

crises;

but

if

to

accepted.

be

have

-

its

set

may

generally

listed

Toward

off

on

Let

v .;

of The Investment Dealers' Association of Canada

of approach and under¬

standing which

us.

The

Study found it necessary to

Equitable Brokers Limited

dis¬

concerns

ing

impact

the

securities

Member

at various points the emerg¬

of

automation
markets

of The Toronto Stock Exchange

upon

and

the

possible regulatory and other

uses

put. We observed in
ters

a

some

quar¬

misunderstanding of these

discussions. It

was

suggested that

how to

their

run

implying

market
a

Head Office

trying to tell business¬

were

men

Canadian Investment Securities

technology might be

that

60

businesses

the

skill

Yonge Street, Toronto, Canada

and

the

in

Montreal

Branches:

Hamilton

Kitchener

place could be replaced by

computer.

We

ideas and the

have

no

U. S.

such

Subsidiary: Equisec Canada Inc.

Study did not have

them either.

the

But

Commission

has

a

definite interest in automation in¬
sofar

as

it expands our

understand

discharge

the

our

capacity to

markets

to

and

regulatory respon¬

sibilities. There is every reason
that

the

to

capacity of such

reconstruct the market will be
invaluable

tool

for

an

surveillance

and for the collection of essential

information.,- The
this

equipment

availability

—

which

is

of

McLeod,You ng,We ir & Company
LIMITED

now

Members:

i

The Investment Dealers' Association

of Canada

Corporation Securities

im¬

are

Congratulates N. Y. S. E.

here before

Congress and

Government, Municipal and

by the Study.

Another
cident

of

entirely
recent

separate

days

in¬

illustrates

Underwriters and Distributors of
r

on

all

Exchanges

Head Office

50 KING STREET WEST, TORONTO

State, Municipal and Revenue Bonds
Montreal

Ottawa

Kitchener

Winnipeg

Quebec

London

Sherbrooke

Vancouver

Windsor

Hamilton / Calgary

Edmonton

New York

Canadian Stocks—Bonds
Affiliate:

CHARLES KING & CO.

McLeod,You ng,We i r

Members
American Stock Exchange

Telephone
WHitehall 4-8980




Exchange
61

page

Automation

give you an example of

me

the type

/>•,'•

.

.

,

1 CHASE MANHATTAN PLAZA

Telephone WHitehall 4-1770

Broadway

New York 6, N. Y.

,

INCORPORATED

Montreal Stock Exchange
TWX 212-571-1353

'i

TELEX 01-26123

•

ex¬

not allow non-

may

Continued

one

dealing
the

Equitable Securities Canada
Member

the

minimum

from

securities

change; and

Stock orders executed

Toronto Stock

on

exchange

an

members; it may prohibit its

.Limited
Attitude

ac¬

commission rates to be charged by

in

must

asso¬

immediate and

an

important economic impact

particular

and
a
challenge. It may well
of obviate certain problems presented

hammered

they must be. They

us—and before

which

self-regulatory

of serious

interchange

portant and they

how¬

you

process

and

This,

to

industry,

ciations, has taken collective

members

know, that being studied or installed at the
solutions for many of these prob¬ two large New York Exchanges
lems will have to be hammered —presents
both an opportunity

be

its

The

the view¬

of us—may

The

may'

through

a

thinking of the type given to the
case

Commission

a

solutions—perhaps

most of the

projects

and

was

decisive

recurrence

situation

there

not

oversight.

in

the

Study

the securities industry whether or

provide

need

of

many

Report would have to be met by

gratified

and

public

a

that

say

problems described in the

be

must

recently detailed to the Congress.

priority

course,

will,

you

prodding) of the Commission.

would

I

a response

equipment to collect data and to

place, it would

adoption of all

its

of

for the pub¬

is

(or if

un¬

Alternatives

or

the

to

concern

the suggestion

warrants

think that all

at¬

believe

to urge upon you

me

immediate

them

of

any

dramatic,

case,

to

cannot

we

in

of

recommendations

Study's

relegate

the

de¬

importance

shelf. In the second
be

the

a

demonstration

lic interest

rise

wide

a

and

letters

the establishment of

nor

of

In

problems

attention
the

points

future.

firmly believe that

we

of

few

a

for

impressive

proaches;
think

judgment of professionals

from there, I would

on

recommen¬

which

that is asked of you

the

sorry

or

Serious Problems Exist

mention. Some may

Stock Exchange

the

tional practices.

Carrying

action

to

strength and

aspect of im¬

plementation

for

need

gave

is another

mem¬

ever, should not divert attention
that it- from the need for the
adoption of

mean

There

of

dations. Last week the New York

pared to consider fresh,, clear ap¬

we

and to suggested

responsibility

position it had publicly stated.

to which this

not

be

You

financial

long-range

a

,3,

"Not Pure Private Enterprise"

for the

concern

specific

cuss

only

solution.

crucial part of our economy. With
this one cannot disagree in prin¬

itemize

reaction

that their

respect to these

here today but we are cer¬

tainly

III,

avoided the

proceed with caution

have

towards

move

to the

response

with

and to test every proposed

and

Study's recommendations in Chap¬
ter

should profit from it

we

occurs,

time

groups

bers

resolved.

al¬

publicly stated in

underlying

recent

the need to

groups

have

you

number

a

have

You

study

Within

implementation have pointed out

unwise, this does not

own

that it raised.

range

things. We have

area

done several

is

for

means

of recommendations

these

target

recommendations

ready taken action

recom¬

self-regulatory

the

and

of

staff

significantly,

and

at

effect.,

not

and,

category.

securities

the

agencies,

In

may

in

greatest number

These recommendations

itself.

you

legislation

175

Study's

the

those

to the Study's recommen¬

sponse

the

intricate,

more

suspect more controversial,

in¬

industry in the meantime

formed

to

foundation upon which we can go

the

intensive examination

into

The

been

the

have

action. At

or

our

an

not

joint approach to

arrive

time

same

Report has,

Our

and

we

with

responses

tinuing

The

Proposals

responding to the

dustry at several levels. We have

lation will entail for it.

Non-Legislative

NASD itself.

recommendations

establishing

members and increased

However,

not

bill

result of this legisla¬

the

new

the

Undoubtedly the
obtain some new

may

as a

and

some

which

program

both your interest and

serves

tion

a

the

In addition to

Study's
initiated

lesson which may be

a

responsible industry

I submit,

are,

proceed with care, but proceed

with this view.

you concur

There is

doing, there

structure

of

the need to face up to

problems.

ciple. It is obvious that

that

other.

them,

the

on

evaluate

and

use

markup

recognize

policies, and the organization and

hand and better qualified per¬

one

executions,

and

We

must deal with them.

in¬

better

formation about securities

retail

47

NEW YORK

Teletype 212-571-0295

48

The Commercial and Financial Chronicle

48

that

The SEC After the

Special

the

major

examined

and

points
be

can

being

are

readily

re-

well

as

mail

the

as

planned

firms

order

Study of Securities Markets
Continued

branch

from page 47

members to deal

on

the exchange.

offices,

particular

problem

a

difficulty

in

stretch-out-front-end

why

presently before

should

government

when

others

fijl the

induced

be

can

expand
to

Banks Going Into the Fund

rapidly

the benefits and necessity of

mercial banks of

characteristics

gesting that these

inevitably raise questions of pub¬
lic policy. We must all recognize
this is not pure private
but

has

ingredients

Commission

Commission here,

the
of

factors—the

these

of

of

costs

ance

the

as

industry

realigns

over-the-counter
securities, even if the SEC had no
jurisdiction,
there
is
another

With respect to

the part of

on

the

enactment

tions it

its

taken

on

the retail quota¬

publishes and has under¬
assessment of that

own

only

are

is

affecting

force

There

that

here

until 1961,

tion

of

problems.
the

of

From
Act

1940

there had been inspec¬

only 30 investment
a

larities and violations

which

precipitate

thinking.

into

Industry

been

have

larceny

or

found,

many

things,

community

not

the

There

are,

described
its

of

covers

must

Investment

courts— at

be

should

fund

thus far.

in

receive

is

the

one

of

to

us

of

Special

tions

the

delay

pending

opinions

registration

of

an

same

funds

protec-

whether

of

company,

"Front-End

the
an

broker,

a

or

Q

the securities
not

an
any

The

Plans

A

Turning

third subject of concern is
the contrac-

or

Although the

Special

•

+

+•

its

costs.

—

a

is

eo^fderXrslll'fbe^efto
future

(that

is,

abolition

contractual

Commission

has

of

cur*ties Act has been one of its

outstanding achievements,
statute itself has proved
generally adequate and workable,
Her® PerhaPs we have the least

mos^
anc*

problems

relatively.

—

issue"

cism,

were

—

the

and

being

an¬

Mergers

are

plans),

not, yet

the

arrived

in our opinion will meet
tunity to present evidence. "Yet
objectives. First of all, it will clearly the question is not limithelp educate or remind invest¬ ed to
that
group
alone, since
two

nounced and local firms are being

ment

absorbed

requirements of the Act. Secondly,

fund shares

it

contractual planjL The problem of

the

Upon

nationwide

by

basis

the

our

this trend

Study Report,

toward concentration

accompanied
problem

ex¬

own

the examples cited

perience and
in

of

v ones.

by

seems

to be

correlative

a

supervision

of

over

companies

represents

with
the

our

movement towards

roughly

philosophy that part of

one-sixth
are

is-

of

all

one

mutual

which the whole mutual fund
j,

We expect to enlist the aid of

certified

who

Conceivably

the

find

public

not

;

,

Commission

Possibilities in

tion through the

those

sec¬

tions of the Act which he is in

ELECTRONICS
Interest You?

an

inordinate

Commission's

the

WHY NOT

a

entry

banks

Of

position to check. This report will fund field
avoid

same

time

it

INVESTIGATE

increase

staff.

will

in
the

At

help to

protection.

items

Some

But many

have already been the subject of

subjected to criti-

proposals
One

now

in many cases

is for decision

and for action,

very

+bis

In

let

connection

me

Practical point has been brought mind you_if reminder of such
h°me to us: that disclosure is not
enough unless the facts

are

wide- intricacy

assure

may

nnrtirnlarlv

if

into

as

no-load basis.
-

of the problems

some

of able,

neoole who make

experienced

this industry

ud

People wno maKe up tnis inausxry.

expect In a word> yc>u have the capacity
ta ma^e headway with their co- to meet the challenge, and I am
operation.

port,

have

we

that

confident

:

Independently of the Study Rerecently

begun

a

Simplifi-

the

The
l

to

answers

these

pressing,

questions.

comm0n

cation in the established registra-

———

52nd Annual Convention of the Invest-

and yet it

Hd"wf°d,k^.,ADe?.iUi0i963. Americ*•

is

a

worthy goal.

'

We

.

,

,

address

-

lf

by

Mr.

Cary

This

THE COMMERCIAL AND FINANCIAL CHRONICLE (Reg. U. S. Patent Office)
William B. Dana Company, Publishers, 25 Park Place, New York 7, N. Y., REctor 2-9570.
d. Seibert, Publisher and President; William Dana Seibert, Treasurer; George

impact,

J. Morrissey, Editor. Published twice a week

tney

indi-

havP
nave

nu

competition

'

■

[every Thursday (general news and ad-

vertising issue) with a statistical issue on Monday]. Other offices: 135 S. La Salle
^reet, Chicago 3, Illinois (Telephone STate 2-0613); Copyright 1963 By William B.
Company. Second class

oana

postage paid at New York, N. Y. Subscription in

Canada, $83.00 per year. Other countries, $87.00 per year.

Dominion of

account of

On

NOTE:

the fluctuations

in the

rate

of exchange,

remittance for

ELECTRONICS

\

Ilj

ment

whose

jnveste(j for p0SSj.
ble

long-term

growth of capi¬
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IIAUIA DA

engaged in the ElecGet the

tronics field.

Booklet-Prospectus and

ord of this Mutual Fund

now

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primarily in common stocks for possible growth of

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A professionally managed mutual fund in¬
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Objectives: current income and possible future growth/Established in
1932. Write for free prospectus today.

Inc.

EATON & HOWARD; INCORPORATED
,24 Federal Street, Boston'10,

St., Chicago 3, III.
□

E&H

Stock Fund Prospectus

NAME.

Address.

STREET.

City-State.




CFC

j

CITY

□

a

pany

mutual investment

which supervises

sified

portfolio

securities

selected

of

a

com¬

American

for

Prospectus

on request

diver¬

the pos¬

SE LECTE D
Investments

Company

Mass.

Gentlemen: please send me your free

535 Fifth Avenue, New York 17, N, Y.

Name

.«

A
...

both
rec¬

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HUWAKU

companies actively
liiiiiiilil

ft

IH IX

A Mutual Investassets are primarily

Baianceo Fund Prospectus

United

States, U. S. Possessions and Members of Pan American Union, $80.00 per year; in

foreign subscriptions and advertisements ihust be made in New York funds.

TELEVISION-

111(1! If

the

,

an

thpv

,

kfi I

.

,

before

ciaU(je

,

EATON

and

industry

j0jn wjth the Commission to

can

review of our over-all program find
in the disclosure field.

sincere

with

effort

conscientious

mutual

cated, their offerings would be on
a

.

.

the

have

ac

particularly 11,

,

of

We have taken js the wealth

ly disseminated.

a

point is needed—that to offset the

operation of de¬

<

FUND, INC.

re-

ac-

veloping competitive forces.

with

investor

*An

may

Congressional

or

also

compliance

this program to raise the level of

tion process is not easy to achieve

J

without

only the financial statements but

Do the
Investment

not likely to be settled over-night,
a crucial element in

gut time is

,

this problem

resolution

some

ac¬

certify

would

often

and

many

are

They did not sprout up
over-night, and many of them are

"hot a great deal of study/, The need

the

Study's

distant tomor-

on some

in the immediately foreseeable future. I know that the
row

require further study.

being sold through

regulatory responsibility industry Should face squarely.

should be placed on the industry.

countant

l\

basic

about the

self-inspection which is consistent this initial sales cost is therefore

independent

I

a

nof. action

yet

new

over

over

explored.

being

are

And

be made.

can

controls

In

trend which
and

discussed today. By that I mean

re£lstration ... . and related problems
exerr|Ption provisions of the Se- complex.

.

automation

to

the Special Study's recom-

mendations and the other matters

to

now

sues—particularly

example,

industry

unrelated

Decls,on and Actlon Needed
In conclusion, not only the Corn-

upon

^

Status of "Hot Issues"

improvements

Load"

the front-end load

has abolition

but

complex.

Report,

ra

.

front-end

addition, we are in the last at any decision. Only the Assothis problem up with the principal
forces stages of developing a new coih- ciation
of
Mutual
Fund
Plan
^
moving towards concentration in prehensive
annual
report
form Sponsors has asked for an oppor- mvestment services, and
for

your

seems

which

Act

objectives

be

in

shall

and
we
soliciting

individual

of

future

of

with,

are

but

in,

views

to the desirability of ;

as

continuance

reanalysis. These

interested

recommenda-

Study

proxy

under-

which most of you

undoubtedly

implementation

because

or

Present

even

education, the under¬

meritorious

thorough

also

sympathy

of

us,

sponsored by a bank,

insurance

latter, tual plan.

to be

To

mutual

the

regardless

situations.

for

going

tion.

phase

Company Act.

least

investors

all

a

prob¬ standing

financial

the

fully

are

within

the

all

confronting

the

nuities, and have prevailed in the

violation of fiduciary
Except

are

only

1940 and the Securities Act. Con-

tiohs

few

rules

not

It would be unconscionable

Our

presently

approaches.

tinue, and hopefully with expedi-

subject to

com¬

and

number of areas, and by

a

areas

of the 1940

however, the basic problem

Although the Study considered

will

other

are

process

by

issuers,

series of releases der

a

are

new

responsibility uncovered in
in Securities

super-

established

of

con-

for

equity

ioad plans. To do otherwise would missi°n but the
times and the
moving £e bureaucracy at its worst.
needs of your industry and of the
mutual fund
investing public call for action

banks

expansion

broad

inspection program of investment

government structure Act
our

ac-

conventional

of

plans

for

signed to clarify Commission poli-

registration
sistently, we have applied the matters, the Report says:
The
understanding same rationale to variable an- Commission s
administration of

panies. We have activated

formal

lems

the

not

forces active outside the

The Merger Trend

Board

the companies
which
is
gradually investment
counsellor
judgment. showing important results. Irregu¬ other person.

Government

system,

of

years

filings

of

developing a
securi-

by

—

form

vision. We have taken the position

the

the Commission of

thinking. As you know, one

prominent newspaper has changed

Act

the Investment

and better

progress

underlying

well

25

ing

ties

definitive cies in

Congressional

front-end: load

shorter

the publishing

;

,

trying

are

plans

sow

Company Act, I can report steady

the

the masthead

traditional limits

of

affect

might

of

business and hence this
Investment Company

of

which

expansion

trust fund activities

common

beyond the

squarely

other arms

Similarly, in the field of retail

factor

their
far

managing agency

the

and

itself.

scrutiny was necessary.
quotations

accounts

business, the need for

a

government might believe

the

your

viewed

be

the competition—must be kept in bal¬

if

not here to focus

were

All

must

the antitrust laws.

eye to

enterprise
permitted
during
of private supervision, and the principle of Federal
Reserve

these questions, and even with

on,

business,
an

running

Certainly

government.

other
with

or

of
the

tion has been taken, our process-

Business

casting doubts

not here

am

load

may

//■;

Thursday, December 26, 1963

.

even

until

Meantime,

firms where growth
on expanding
The second matter with which
this outruns existing controls. Further¬ we have been dealing involves the
system or the traditional structure more, mergers and concentration proposed commingling by comof an excharlge. I am only sug¬ in the securities business, like any
I

seeds of. change.

vacuum.

Commission

of

us

.

entry

and

viewed by us. There is no reason

.

sibility

of

long

term

growth and income.

capital

135 South La Salle Street

Chicago 3, 111.

Volume

198

Number 6328

.

.

The Commercial and Financial Chronicle

.

prerequisite

as

Report of the

the

;

49

to

succeeding

enrollment

in

of the Insti¬

year

and

course

tute. Beginning with the entering

As

homework

class

Education Committee

comments

of

ment

Educational

speakers

the annual report of

as

Release also in

drawn from the

measure

some

Featured
President

Amy as Ames and SEC Chairman
Cary.

Program

IBA

supplements the report.

participants

following

Members

(53);

were

ment

Business

sources:

Govern¬

(23); and IBA Staff (3)..

Registrant
Institute

permitted to write

providing

..

program

procedures while at the

time

same

suggestions

for

possible improvement.
The

Institute

the

under

Lawrence
bers

of

Parker

and

with
Avery Rockefeller, Jr.

H. L. Parker

Dean

.

the

and members

at the Wharton School.

mittee

Parker

its

17

regional Group

operation

country have during the past

actively

year

tended

their

relations,
grams

for

continued

and

educational,

A

public

promotional

and

to the

ex¬

of

the

securities

the

the

the

co¬

of the 1963 Institute.

1963

printed

Institute

made

was

in

report

text

and

available

at

Spring Meeting of the Board

and

industry.

for

of all who contributed

success

pictures

both for the public and

—

members

gratitude

comprehensive

on

pro¬

Chairman

behalf of his Committee

on

expressed

the

the

of

of the faculty

The national IBA Education Com¬

and

mem¬

Committee

full .cooperation

Education Committees throughout

H.

of

the

Planning

distributed

offices.

/

all

to

member

The

Institute

Banking

is

the

In

individual

project of the Education Commit¬
tee.

It preempts

more

1964

held

the

and staff time and effort than any

The program

other single

will

activity..

1963

(March 10-15),

cessful operation

and

the

Study.

suc¬

briefing

program

Through expanded facilities and

will

already

as

a

legislation

there
the

substantial increase in

number

of

registrants

could be enrolled and
record

attendance

of

partners

an

and

officers,

perienced

personnel.

the

to

a

with

the

as

well

changes

in

IBA

closely

efforts

of the

industry responsive to the Study
will

participate

in

either

this year,

the

program

discussion leaders.

the attendance held

320

a

up

registrants.

made

r,

All-told, 98 speakers, panelists,
discussion leaders

ticipants provided

and
a

One

total of

other par¬

rich program

as

speakers,r panelists

the

Institute

Committee.

Heretofore

and

year

second

been required

contribution

to

industry.

Revision

be

poses

of

Professor

IBA

will

be

the

regis¬

as

For

pur¬

program,

Ketchum

structors

by

qualify

representatives.
this

and

his

affiliated

in¬

with

University of Wisconsin in

adjunct capacity. Thus, the
goes

on

before

as

change being this

or

is being

Planning
both

with
—

an

course

the

only

an

the

applications

courses

registrant

alone,

:

In

Correspondence? Course
the

1950

Committee

spondence

IBA

Education

announced
course

corre¬

a

Business,

the

The

cago.

after

and

the

course

vestment

patterned

was

for

course

banking
in

shortly

1946,

in¬

after

World War II.
Both of these

Upon registration each
will be

have

suc¬

organizations and members of the
both

as

integrated part of their

an

respective
gram.

indoctrination

pro¬

Approximately half of IBA

members have taken advantage of

home-study program for their

withdrew

from

the

home-study

field earlier this year upon recom¬
mendations

substantial

spondence
to the

its

of

portion

faculties,
the

of

courses was

a

corre¬

transferred

University of Wisconsin at

Madison.

The latter

prominently
USAFE

University is

identified

program

with

and

-

enjoys

candidate

for

the

These

and

background

sound

a

provide

courses

hensive

compre¬

information

basis for subsequent

advanced

study

matures

the

as

through

ex¬

two-course

concentrated

Continued

on

page

50

.

student

book rental forms; and a

registra¬

tion

card

bearing

the

name

and

address of the instructor.

is

It

recommended "that

student submit
an

one

lesson

a

A Name to Remember
When

the

Investing

week;

of about six hours is

average

30

to

prepare

each

of

the

lessons.

cessfully served employees of IBA
Association make repeated use of

adequately

syllabus;

required
courses

the

sent:

the

of

case

classroom program will be offered

course

in¬

trainees

augurated

of

University of Chi¬

classroom

a

School

the

course,

NASD qualifying examination.

University of Wisconsin

Madison 6, Wisconsin-

Banking offered in

the

Exchange's

432 North Lake Street

.

in Fundamentals

cooperation with the Home-Study
Department

The

both

perience.

University Extension Division

r.-

of

prepares

the

as

the

prepares

This
IBA

for

correspondence

registrant

registrant should

completion

The concentrated Fundamentals
course

be addressed

to:

Outline

Examination.

qualifying examination.

fee

per

indicated

Study

adequately

spective registrants.

$60

ending

offering treats
areas

Registration

all IBA member offices and pro¬

of

week

Exchange

more

January to

Upon satisfactory completion of
the

employees

program,

of

IBA

member organizations will receive
a

certificate from the Association

well

as

as

the certificate from the

University.
This

course

subject

treats all the major

included

areas

Outline

in

—

a

Balanced

Fund

seeking conservation of
capital, reasonable cur¬
rent income, and
profit
possibilities.

the

Qualification

for

Ask your investment dealer

Examination of the National Asso¬

ciation

of Securities Dealers, Inc.

for prospectus

or

write to

Coupled with member on-the-job
training the program should ade¬

quately

prepare

the registrant for

Wellington Company, Inc.

the NASD examination to qualify
as

a

an

registered

representative

NASD member

Philadelphia 3, Pa.

of

organization.

the
an

1963

enviable reputation in the home-

Summer

During

the

Training

past

Program

summer

the

study field for the quality and the

IBA Education Committee and the

extent of its offerings.

NYSE

The Education Committee of the
IBA

also

elected
of

Fundamentals

transfer

to

its
of

course

the

in

Investment

Department

Firm Liaison again

sponsoring
training

a

Member

concentrated

program

for trainees

of

cooperated in

of

two

summer

courses

entering the securities

Banking to the University of Wis¬

business. Fundamentals of Invest¬

consin.

ment Banking was offered during

made

Arrangements
to

have

have' Marshall

D.

been

Ket-

chum, PH.D., Professor of Finance,
University

School

of

of

Chicago,

Business,

the

four

August

weeks,

9,

Operations

July 14 through

and

Stock

was

covered

When you

invest-

wili you seek the

objectives of these
mutual funds?

Exchange
concur¬

continue

rently for three hours during each

responsible for the syllabus of the

of these four weeks and full-time

first

Fundamental

Investors, Inc.
A

registrants have

to submit

in

Satisfactory

require¬

fifth

subject

for

covered

to

>

two-course

their

change

to

The

all major

the regulatory

as

tered

the

the

of

the

for enrollment and the remittance

Graduate

important change

by

of

rep¬

A detailed announcement folder

administration

identified

production

will be mailed early in

a

Special

knowledgeable in

less favorable business climate

remarkably well with

real

a

the

ex¬

Despite

or

entire

regulations.

are

the

the literature of the

specialized fields of the securities

junior

other

resenting

business and who have been

who

all-time

343

and

ih

creditable manuscripts

many

Special

one

devoted

on

realized

leaders who

a

SEC

be

session

revised program format last year
was

the

example,

Study and its implications

registration.

aggregate

for all three classes

by

For

afternoon

from the stand¬

point of the caliber of the

be

March

industry growing out of

portended

again, in

highly

a

will

of

strongly reflect developments

The eleventh annual Institute of, in the
Investment Banking was

week

8-13, again at the Wharton School.

Committee

result

procedure

new

ex¬

When the University of Chicago

Institute

during the

this

is

with

during
Aug. 16.

their

through altering the subject

Study

Banking

Investment

major

that

It

trainees.

1964 Institute of Investment

of

pected

the

v

1963 Institute of Investment

Banking

topic

a

approval.

of Investment
conducted

was

supervision

his

and

will

on

choice, subject, however, to

review

reflect

approval of

authorities
ments

submit

the

to

responses

questionnaire

enthusiastic
and

and

of

years

Institute.

examination

Wharton

Faculty (19); Other Financial In¬

stitutions,

three

the

be

from the December, 1963 IB A

the Education Committee. The

at

matter

of his

serves

entire

enrollees.

Furthermore, each registrant will

covering all phases of the invest¬
included

his

attendance

in¬

correspond

syllabus is made

one essay

the

and grade the

papers,

and

the

during

This release presents excerpts
which

is

expected to submit only

of the Education Committee, Avery
Rockefeller, Jr., Partner, Dominick & Dominick,
New York City, presented the following
Report:

Bulletin

this requirement

1964

of

charge

being altered. A registrant will be

Chairman

banking business.

in

structors who read

diversified

mutual

fund

designed for investors seek¬

essay

ing growth of income and
possible growth of their

bullock fund

money/

Diversified
canadian

fund

Investment Fund
A

dividend

AFFILIATED

An investment compapy seeking
for its shareholders possibilities

Company invests in
balanced

a

reasonable

current

between

a

Fund

portfolio

bonds

and

A

preferred stocks selected for
stability, and common stocks
selected for growth possibilities.

long-term growth of capital

and

/

income.

Prospectuses

on

request

diversified

mutual

ing possible
growth of their

'

long-term
money.

Underwriter and National Distributor

CALVIN

BULLOCK,

ESTABLISHED

63 Wall Street, New York 5

LTD.

1894

hugh w.

long

and company
INCORPORATED

CHICAGO




LOS

ANGELES

SAN

FRANCISCO

fund

designed for investors seek¬

Lord, Abbett & Co.
ATLANTA

fund

Growth Stock

A Balanced Investment Fund

|

mutual

Diversified

BUSINESS SHARES nation-wide securities

A Common Stock Investment Fund

of

shares

AMERICAN

FUND

diversified

designed for investors pri¬
marily seeking current in¬
come and also
possible longterm growth of their
money.

ONE

WALL

STREET

WESTMINSTER

AT

ELIZABETH

3,

PARKER

N. J.

'

The Commercial and Financial Chronicle

50

.

.

Thursday, December 26, 1963

.

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tsectxffe????

«f

.->

<«S

-a

has

jufv.xa

rxrrkfe few
Bxxx

>x

i'<x??k?<..

;n?fej-

»sHj« t't'l XCO

;?•;«'fe-.fe.x

fernx
Kf,

•ferroo,

Mstr-cfe;

■;mrs<:

'S'ar-esrB its
Ao.i:s:->;
;

ftrr

krrfe

ft?:

Sfeftfeaa

;

•

act; stcxr

reiraarr

nterkrt"

ata seer-!" ;::.: rr

fe.v-::;-

>rs

atvt

Ikst-

?v:

>t.fe

t;;-r

Or

tx5ss

P'<

ysrsOrterrS

tB(.fe>?

ore

trr3e<i OTP:

Be!;<■;>'
era.

•xtstttp.-ixxira

m

fee

>?ts.

O PC

-a

Arris 0::rv>.
-t

<>r,

feo-fe t\
'••errre

• •

rrr '

at oa

Education Committee
Continued

from

again in the
five

weeks

October. This letter

49

page

public

relations,

of 1964 for

summer

beginning about mid-

to

present current information of

general interest to

securities business, in brief digest

July.

The

form.
IBA Educational Literature

Each

IBA

the

year

Washington

answers

report

in

office

thousands of

agement

York

in¬

in

Group).

ties

ceived

the

ment

generally.

IVA

revised

lications

Education

Depart¬

of its

several

and

During

prepared

pub¬

a

was

conjunction with
The

tion has been

business

(which

practices

vestment banking and the securi¬

1963

featured

issue

Survey of Sales Man¬

a

sponsored by the IBA New

course

and others for information

on

first

on a

conducted

requests from educators, students

by

publica¬

new

enthusiastically

members

Intermittent

re¬

others.

and

publication

the year is planned.

sponsoring

are

to

acquaint

in¬

of securi¬

number

A

continue to be

Groups

>a.> r a rr

to xrtttxUotx

to

:xa-rr
x;t a

f'BA

of

ett

.■■

IBA:

updated:

were

Nature, Purpose,

throughout

Organi¬

zation, and major activities.
Available IBA Tools—a
randum
services

memo¬

literature

on

and

available to IBA

members.

3eX:v;(a-a

Junior

They

assist

Achievement
formation

give

Two

new

reference

sources were

Bibliography

of

isrx

axtOrerr fa

x

on

nance

nature

tion

A
IBA

—

information

and

source

of

and
on

74

Fi¬

the
mo¬

pictures.

new

Scanner,

was

enterprises,

active in
in

sponsoring training pro¬

grams

a

at

•??

newsletter,

of

our

every

it

JA

on

a

small

company

free

a

natural

scale.

on

Since

sells shares to

program

-

tBtOf»»rixt-",t1y

t;>/vr xo S
;s

p

am

?t:.Oi...fe!.l fevrrtate wei?

ttvxiv-f XOf

si-

ttrto

vxicef ear ari.y
i? v;t-t ia>;l«3c
:ta

fee-

pvraBioie xttctxxofe-ti

:ai'i'?Xt?irai.itar: pirreeo oa t;;<r

ex iti v?;ac

tl?A pr;;xfercfe?p

•.,

a-t f... rr

;-.aa,<

tu;?>, or-.;.

>

at tctx f>o>vr.rtrrra.r:X fe Waai;
irrgt.oxt.

?-;>r<i-t;:.-

at

.v.

?>:

Ave: y

t-r.-rrtrrfciiVr,

"

or.

f.'OS.ir irrr;?- fl?facaf?aa CXaxotxrOoo

enced

public about invest¬

The

of

"Inves¬

sponsored over

was

commercial
an

series

1963

Forum"

channel in Chicago

audience of approximate¬

ly 300,000 persons
Over

the

New York

to

a

includes

past

per

few

program.

for 78 executives

its

fourteenth

series

ture

For

the

past

management

have

business.

week

management

been

developed

Management

with James

courses

in

O. Rice

on

se¬

from

annual

in

lec¬

"Investing for Se¬

curity and Profit" for 300

curities

the

for

sup¬

of

The Northern Ohio Group spon¬
sored

members

in

variety

parts of the country.

Group has concentrated

Several

wider

persons

in Cleveland in March and

the

years

all

a

managements.

Industry"

its educational efforts toward im¬

personnel. Plans have been

made

conduct

and other committee projects, the Scanner
particular interest to securities business

of

three

April.
IBA

Cleveland

the

years

area

actively promoted the local

one-

have

cooperation

Associates,

a

Course for the Securities Industry

local firm specializing in manage¬

in the

ment

spring of 1964.

.

The Central States Group was a

as

well

as

educational television

1963

training.
the

course

ment

In

Group

the

spring

offered

its

of

first

devoted to "Sales Manage¬

in

the

Investment

Banking

Pioneer Fund

Massachusetts

fund

I
•

mutual

ties

investment

selected

long-term

for

growth

•

and

•

in-

•

Prospectus

Fund

upon

22 E. 40th

50

LIFE FUND
State

Street

Boston

DISTRIBUTORS

Name

Address-

or

from

I

from

•

MANAGEMENT, INC. I

St., New York 16, N. Y.

Please send

City,

request

investment dealer,

FUND RESEARCH &

MASSACHUSETTS

*

possible

come.

Life

ji

offering a diversified, managed investment in securi-

A

enter¬

public to get its initial capital,

is

a;a\aa fe

-

f'BA

prise system by putting them in
business

fts

r:>aitas>Ni'a<-tB>

GrOXO axxi

too

,x>'tfefeao

As.rfitisxa -<f

with

for both new and experi¬

Junior

inaugurated in port from the securities industry.




p<-!->>

proving

other

and

enlighten high school students

the

Association

of Junior

outstanding

attributes

a.

frttekoc

-exit rftfe xttrirxir

your

the

,<

ac¬

The JA program is designed to

Investment

Investments

to

tr<t'Xitax,

i re to itrxt-e --'rtx-

x,-

Ire fefioc

Achievers.

year:

Banking & Related Subjects.
Films

these

scholarships

awards

published during the

are

companies, publicize

of

:r!?>r<?et

Catara iesrxo %$ SCAtifet:ft.

fro.;tray

programs.

organizers

ace!

thrir

gxv<>

inc.

country

Achievement

jtrrafeit.of;
>xr:r>y

itrttts

fsy BXxxfyafaats tote xfetrsBi-?' re;v;a;xr;stfesa,

a;r<otr?r?att

tively participating in their local

and

>;

the

:.xtv??r :r>:>:

(?«?<•? :er>.fe

yifet-

Many IBA Groups and members
Two booklets

ttafeorr

c<moittr.a

-cxii '>e

trerrrr

-

attuvtxfes, Xiir Px AAN'tttt

ifetxSfttea.

ttSTA

ton

?-si

r< r,<

fee ;.?<t?s trap;

iness.

California Group has been

active in

Brest otiSfet X,Xa

?«

tcaas xttxi

ercttxr

;|,.-

rar

tors'

of

major cities.

The

sweaty

fovaafsifefe

irryfe'-of I?A SCAfeBSei, ;> KC ariSextr?- riasfroati to.

ing and the operations of our bus¬

the Invest-in-America program

their

ISifJ

promotion

pioneer in the use of commercial

Junior Achievement Participation

>

ownership.

Aifefoaiicaxfey
sroalSet'

of ttiXoffertiatt ef
pa tor: aim- ttmctu

to inform the

Groups and in¬

and the advantages

ties

during

several

ones.

new

in the

persons

ess

Oy

vxaf »,iji ?Ov>af aft
ralvO rpphrantr to iaro

rt-U'tro xife year,

a noocd

os

information

dividuals with the investing proc¬

designed

was

courses

i;x.

>•,

<

srr::!)-•

year the Education Committee inaugurated a new news bulletin for members,
published inter¬
mittently throughout the year called IBA Scanner.
It is designed to present current information
general interest to the securities industry in brief digest form. In addition to items on training,

increasing number of popular

lecture

«s>o-

rOvariistfe,
tosferrafa

of

members

dividual
an

t,ifoopa

tor.no

.kr-yv at (>(v xotse ?a.?<!sp,-:-.>-.-\j

Significant Group Activities

Report of the

')!!-,

coi.tr-rc feirratran.

tar

t>>cr:

atkr-r>,:

aeeaftatt

r

first

xiit?

to

5te«try

>,v

'aiteLsaO?'?^

;<>;<!
'

arc

trace

a:>fe»rios.

a.

srissraifSeo
e

an-)

Arao

ifcspctiSCS

ft-

rofeaitRr^fferoxyir twaaty

:wrcoat

•a:m.,

or

a>i%<

to ml

This

Upper Left—Andrew J. Corcoran, Floor Specialist from Benton, Corcoran, Lieb & Co., New York,
addressing registrants in the Stock Exchange Operations Course. Upper Right—Edward R. Gilleran
of the NASD explains its rules and policies. Center—Graduates of the course on Fundamentals of
Investment Banking. Lower Left—George Hoffman, Training
Director for De Coppet & Dor emus,
New York, spoke on "Trading in Odd Lots." Lower Right—John F. Brady of the NASD also addresses
the registrants on NASD rules and policies.
x

IBA

,-r

ty atfe Bxfe? ftrfpyit?:<•
for

M

Tir/

of

at-o

caorxotfep: %mr

Cfeyiortaoai

Xife type of Boso

<;■«

e,.??-;

> a <v.>taatr> ai;<;

r.-artx?-

k-fakisar.

fo<

paocr

coU<<n

of

puBiiauo*

:oyrake

B-itr.«?rr 'frttiftfA? A r

B'a Siarr

teo-atra isatfer a*':

It .you vaxtiti

<

taxcrraf

tvwy

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:

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-

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cii'. Sceo irsto rtxfvi

fitlrra

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xcrx>«<: :f f«i;:sXi(rr>:

am;

fettrrsofe

than tioff of

^votfetttfe Ap»

«

.

or?

.

1/4

'OiS

a

tferraotx

OepctaXuu:.

«;-oi-ofe

ffekfec knovinrtgo of fBrrrro Bfe

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Regional

Pat

?xi?«?:>.f)>V'?.o.f ;scxtv;.i!(

crrrxcr

'•«

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rSfereBe'n.fe.r ifeecxofei?.?;.;.

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;

I
•

Volume

Junior

Number 6328

Achievement

through
vice

198

financial

and

.

The Commercial and Financial Chronicle

.

Lester T. Miller

program

assistance,

.

ad¬

James W. Riordan

Chairman.
H.

Dominick, New York,

Cincinnati,

Parker,. Partner,

Chairman,

Institute

Planning

Bache

Kay, Richards & Co.

Committee.

tion

members

Committee

of

are

the

as

Henry Perry

follows:

Merrill
&

New

New

Orleans. La.

First of Iowa
Des

Baker

Manley,

Continued from page 27

Incorporated

in

John W. Bunn

'

New York

tate

Stifel, Nicolaus & Company

regulating real

VIH

The

G. H. Walker &

Annual

Meeting of

North

Co.

City, Mo.

American

Securities

ministrators

met

Ferris & Company

Several

Washington, D. C.

provides

discussion

St. Paul, Minn.

the

of

problems

Respectfully submitted,

N. Y.

STATE

Graybard

LEGISLATION

Robert A.

New York, N. Y.
L.

Hewitt

Fahnestock
New

&

Co.

.i- Hulme,

Inc.

Bache & Co.

George S. Kemp, Jr.

E. F. Hutton &

Paine,

Company Inc.

San

Calif.

Francisco,

Webber,

Jackson

Curtis,
New

Robert Mason

.

Sihger, Deane & Scribner
Pittsburgh, Pa.

Johnson, Lane, Space Corp.

St.

Louis, Mo.

APPENDIX A

Francis I. du Pont & Co.

Summary of Amendments to
State Securities Acts in 1963
ARKANSAS

Liberty National Bank and
The

Oklahoma City. Okla.

1963,

J. J. B. Hilliard & Son

Walter I. Cole

Merrill, Turben & Co., Inc.

Beecroft, Cole & Company

Cleveland, Ohio

Arkansas

amended

was

Henning Hilliard

Atlanta, Ga.

Thomas A. Melody

Boston 9, Mass.

G. H. Walker & Co.

Trust Company

Harrison Clarke

The

,

The

Philadelphia, Pa.

York, N. Y.

W. Bruce McConnel, Jr.

10 Pott Office Square,

George H. Walker HI
'

as

Securities

effective

June

Act

14,

(1) Subdivisions (a), (b) and
(d) of Section 5 include mortgage

Louisville, Ky.

In

New Jersev

follows:

Topeka, Kan.

;

FUND

Tom G. Hilborne

Butcher & Sherrerd

Incorporated

PUTNAM

Denver, Colo.

York, N. Y.

and address to

DISTRIBUTORS, INC.

Richmond, Va.

Allen R. Hickerson, Jr.

W. W. Keen Butcher

Lynch, Pierce, Fenner

name

Houston, Texas

&

>•

.

check

this advertisement with your

Davenport & Co.

>

A. G. Edwards & Sons

John Brick

William D. Kilduff

New

Baltimore, Md.

Dealer

above and mall

Henry L. Valentine H

Wilbur E. Hess

Portland, Ore.

Richmond, Va.

name

Little Rock, Ark.

Alex. Brown & Sons

*

Prospectuses, or

Fund

Stephens, Inc.

Nashville, Tenn.

Dean Witter & Co.

Abbott, Proctor & Paine

& Smith

v

for

Jack T. Stephens

F. Barton Harvey, Jr.

William B. Boone

Ask your Investment

Chicago, 111.

Equitable Securities Corporation

Pittsburgh, Pa.

New York, N. Y.

FUND

Francis I. du Pont & Co.

Gus G. Halliburton

,

PUTNAM

INCOME

Columbus, Ohio

Richmond, Va.

Applegate & Humphrey,
'

THE
;

James E. Snyder

Mason-Hagan, Inc.

A. Lowrie Applegate

York) N. Y.

The Ohio Company

John C. Hagan IH

,

Chicago, 111.

Harry A. Jacobs, Jr.

Merrill

Co., Inc.

GROWTH FUND
-

Cleveland, Ohio

Kansas City, Mo.

Podesta, Chairman

Walston &

;

George G. Scully

Stern Brothers & Co.

COMMITTEE

PUTNAM

,

Saunders, Stiver & Co.

Julian L. Gumbiner

Smith, Barney & Co.
Charles

THE
>

Dallas, Texas

Reynolds & Co.

"A Balanced Fund"

Indianapolis, Ind.
Donald G. Rundle

Eppler, Guerin & Turner, Inc.

regulation of securities.

Glenn E. Givens

FUND

BOSTON

OF

Indianapolis Bond and Share

Dean P. Guerin

GEORGE

Corporation

Boston, Mass.

state

in

THE

PUTNAM

Frank L. Reissner

Kidder, Peabody & Co.

for

forum

-

Rauscher, Pierce & Co., Inc.
Dallas, Texas

Chicago, 111.

meeting, which

excellent

an

Louis, Mo.

Robert F. Goldhammer

the

of

Kirkpatrick-Pettis Company

Omaha, Neb.

William Blair & Company

4-7.

City, Mo.

Charles C. Pierce

Francis C. Farwell

acts)

Nov.

representatives

IBA attended

Field

Paine, Webber, Jackson & Curtis

St.

Ad¬

securities

Orleans

New

in

Francisco, Calif.

A. G. Edwards & Sons

the

(whose members ad¬

minister the state

George M. Ferris, Jr.

Mitchell

Kansas

Donald L. Pettis

,

-

San

-

Barret, Fitch, North & Co. Inc.

Benjamin F. Edwards III

N.A.S.A. Meeting

Paulen E. Burke

Nashville, Tenn.
Frank W. North

Company

Davis, Skaggs & Co.

Incorporated

J. C. Bradford & Co.

Richard M. Davis

''

&

Detroit, Mich.

"

Seattle, Wash.

es¬

McDonald

Einer Nielsen

V

Pacific Northwest

syndication offerings.

St. Louis, Mo.

J.

Robert E. Daniel

lation similar to present provisions

Portland, Oreg.

Bennett,

Co.

Legislation Committee

Merrill Lynch, Pierce, Fenner

^

York, N. Y.

Harry A. McDonald, Jr.

Report of IB A State

Frederick G. Bradshaw

New York,

page

L, Mansell

New

Houston, Texas '

D.

on

Corporation

Blyth & Co., Inc.

■

Specialists in

Elwood A. Crandall

Glenn R. Miller

Walston & Co., Inc.

J. A. Hogle & Co.

Chicago, 111.

Salt Lake City,

Tax

Utah

H

ESTABLISHED

Exempt

Bonds

1933

Mutual Investment Funds
The
•

•

Dividend Series

• Income
•
i

Aerospace-Science Fund

Stock Series

• Growth Stocks Series

/

The Common Stock Fund
The

Fully Administered Fund
A Balanced

Series

^NATIONAL

Fund

STATE BANK

Preferred Stock Series

NEWARK, N. J.

Balanced Series

ESTABLISHED

1812

Bond Series
'National

Information Folder and

Prospectus

on

i

120




■

Sponsor and Investment Advisor:

Request

Member Federal

NATIONAL SECURITIES & RESEARCH CORPORATION
Established 1930

Broadway, New York 5, N.Y.

I

/

/

to

order

Moine, Iowa

Frank

Rowles, Winston & Co.

Robert

desist

and

cease

a

summarily

Minneapolis, Minn.

Incorporated

Robert Henry

Kansas

issue

authorizes

20 now

Commissioner

y

York, N. Y.

& Smith

the

by rule prescribes.

Section

Roy W. Leriche

Lynch, Pierce, Fenner

Smith

(2)

Greensboro, N. C.

Friedrichs and Company

Angeles, Calif.

Walter Anderson

file

McDaniel Lewis & Co.

Denver, Colo.

Crowell, Weedon & Co.
Los

re¬

Marshall H. Johnson

Bosworth, Sullivan & Co., Inc.

Edmund M. Adams

to

and

Continued
V

Howard, Weil, Labouisse,

r

.

records

Smith, Barney & Co.

& Co.

Paul T. Westervelt

Educa¬

those

Kenneth C. Joas

Detroit, Mich.

Pittsburgh, Pa.
Other

and

missioner

Angeles, Calif.

Detroit, Mich.

Thomas H. Watson
R. Burton Parker

among

such financial reports as the Com¬

Watling, Lerchen & Co.

Chicago, 111.

Boston, Mass.

.

Morgan Stanley & Co., New York,

accounts

Herbert D. Hunter

Kidder, Peabody & Co.

Burgess & Leith

Lawrence

Los

Ohio

Frank E. Voysey

Albert W. Moore

.

York, N. Y.

Wagenseller & Durst, Inc.

W. E. Hutton & Co.

Philadelphia, Pa.

companies

quired to make and keep certain

William S. Hughes

Justin J. Stevenson, Jr.

Drexel & Co.

EDUCATION COMMITTEE

Avery Rockefeller, Jr., Partner,
Dominick &

New

f,

,.

loan

,

Hornblower & Weeks

St. Louis, Mo.

Cleveland, Ohio
Paul F. Miller, Jr.

Respectfully submitted,

Ralph Hornblower, Jr.

Reinholdt & Gardner

Joseph Mellen & Miller, Inc.

scholarships.

51

Distributors Group, Incorporated
80

Pine

Street

•

New York

5,

N. Y.

Insurance

Deposit

Corporation

52

52

Mr.

&

The Commercial and Financial Chronicle

Francis

Mrs.

Bank

ment

Bowen,

tor

Government

Puerto

Rico, New

Newly Elected Officers: Lloyd B. Hatcher, White, Weld & Co., New York; Albert Pratt,
Paine,
Webber, Jackson & Curtis, Boston; Mark Davids, Lester, Ryons & Co., Los Angeles; David Harris,
Bache & Co., Chicago; Charles J. Pierce, Rauscher, Pierce &
Co., Inc., Dallas; John J. Labouisse,
Howard, Weil, Labouisse, Friedrichs and Company, New Orleans
'

Develop¬

York

stock

Report of IBA State

splits and reclassification of

shares.

(1)

A

when

believes

he

that

a

person

order is

pending under either Act.

has engaged or is about to engage
in

izes

the

Commissioner

issuer, broker-dealer

to

obtain

from

initial sale of

any

fected

purchaser

require

ties

Law

agent

or

security ef¬

signed, by

that' he

had

a

the

received

of the prospectus prior to

copy

every

issuer

of

tered

under

the

consent

to

now

Act

service

regis¬

to

file

the

provision

viously

the

Act

such

in

requirement

"which

proposes

pre¬

issuer

an

to offer

a

acting

on

an

(1)

A

Section

new

25157

added to exempt the sale

by

issuer

the

writer

for

security

ties

by

or

the

outside

agency

common-law

per¬

California

principal business
located

are

a

that
be

with

outside

whose

to

trans¬

actions exempt under Subdivision

(12)

in

which
has

offers

preceding
ceeded

(2)
to

the

total

admitted

been

Arkansas

of

a

security for

Subdivision

Section

25100

(n)
to

and

or

no

the

person

exempt

certificate

primarily

has
or

both

business of

and

the
if

the

Federal
no

stop

refusal order is in effect

public proceeding




or

or

ex¬

gas

who is

transaction

filed
Act

or

a

lease

party to

been

such

engaged

substantially during

preceding

two

years

in

the

drilling for, producing

refining oil

or gas.

the

tered

his

state

(c)

or

the

any

the

officer
United

regis¬

person

adopt

part of

as

security which it issues

word

any

an

title of such company

or

name

which

words

or

the

Commissioner finds and by order
declares

be

to

to
the

deceptive

or

mis¬

amended

effec¬

tive July 10, 1963 to provide that

Subdivisions

in

to

mitted

the

to

was

requirement

Commission

amended

for

certain

notice

Section

(4)

revoke the

tively

that
are

particular

the

tions,
the

trans¬

listed

in

Subdivisions
relate

to

the

by

person

required notice.

(8),

various

actions with 25

any

or

(10)
types

and

(11)

of trans¬

fewer persons.

that

file

notice

registration of

a

amended

was

Section

(5)

to

was

amended

1963

to

517.19

of

Act,

impound

and

appoint

ness

of

tive

June

11,

1963

Commission to
and
are

the

The

June

turing

5,

in not

authorizes the
film

on

An

12,

was

rities

statement

shall

fective date

or

to

Sectian

Hawaii

Secu¬

Act, effective May 31, 1963,
written or oral examination

pass a

in

order

to

be

An

eligible for regis¬

examination

fee

199-12.5

requires

that

for

of three years full

period

a

complete

records

business and provides for

of

their

their in¬

spection by the Commissioner.
ILLINOIS

from its ef¬

prior

The

the expiration

following

Illinois

the
came

amendments

Securities

Act

effective this year:

tion

as

dealers,

salesmen

or

&C0.
MEMBERS

MUNICIPAL BONDS

New

York Stock

Exchange

Philadelphia-Baltimore-Washington Stock Exchange
American Stock Exchange

Underwriters and Dealers
in

Corporate and Municipal
Securities

i

PHILADELPHIA TRUST COMPANY

Land

Municipal Bond Division
Philadelphia 9, Pa.

7

'

Building

PHILADELPHIA
Branch Offices:

Telephone 985-8071

'

Title

Baltimore, Md.

to
be¬

(1) All applicants for registra¬

ELKINS, MORRIS, STOKES
Dealers in

of

registered dealers make and keep

registration's ef¬

upon

the

of

be

this provision shall expire one

such

maturing

requires all salesmen to take and

date, except that registra¬

from

(d)

Section

Section 3 to provide that each

year

12

than 12 months.

was

1963

added

tions which became effective
to

ma¬

than

$10 is required. An amendment to

April

year

previously

more

amendment

tration.

(1)'Subdivision (i)

one

5(g),

instruments

more

199-11

Georgia Securities Act

effective for

any

HAWAII

and busi¬

follows:

fective

register

amended to exempt

was

negotiable

upon

10 years old.

registration

not

not

in

months,

and

to

shall

receiver

a

reproduce

effective

unless

offering cir¬

prospectus, and the Com¬

Section

(3)

Act

GEORGIA

amended

sale

for
an

exempting commercial paper

destroy certain records which
over

by

circular is filed.

Section ,517.33 effec¬

new

provide

required to be

securities until such prospectus or

defendant.

a

or

missioner

application of the Commission, to
for the property, assets

offered

or

cular

to

dealer

court,

a

securities

no

sold

suspend

effective

authorize

Subdivision (a) was

authorize

to

also

is

also

renewal fee of $10.

a

new

accompanied
the

whichever
provision

new

registered under the Act shall be

of

so.

of

The

inserted in Section 3A to

secu¬

on

in fact exempt trans¬

transactions

or

after the effective date

provision,

(2) A

sell

or

must

a

do

517.16

Commission

this

tions with

such registrations.

(8),

actions. No sales shall be made in
such

to

<ft

provides for renewal of registra¬

salesman under certain condi¬

or.

prescribed forms to show affirma¬
actions

of

eliminate

authorizing "the ' Commission

Securities

Florida

written

to

Commission

in advance of sales in transactions

(10) and (11) there shall be sub¬

of 60 days

later.

registered

intention

their

(6) A

Act, exempting certain
was

be

Troster, Troster, Singer
New York

'•,

registered securities

rities

J.

Co.,

pursuant to the

amended

were

any

A;'/

transactions,

filed

Oliver

Mrs.
%

dealers who intend to offer

required to be registered

of any

or

by

&

'

requirements that registered

for

qualifications

of

or

for

under the Act to

not

change the exceptions from the

permit

of

States;

(b)

required

or

Thursday, December 26, 1963

requirement.

Act

as

involving

(3) Section 25500
to

any

participa¬
or

that

state

under the Apt to

have been approved

referred
oil

an

the

Securities Act of 1933
order

each

represent

the

States;

registered

been

Col.

recom¬

proved,by

be registered

Securities

added

was

sponsored,

by the United

the

(2) Section 517.06 of the Florida
V

title

if

or

notice

with

has

company

or

any person

that

ex¬

-

or

statement

under

or

mended,

imply

or

leading.

transaction

$40 million.

registration

a

Cali¬

of

assets at the end of its fiscal year

provides

now

respect

proper¬

domestic life insurance

certificate of interest

proof of exemption need not
filed

any

company

of

basis in

sense."

(5) Section 14(f)

of

a

tion in

the

under¬

an

by

was

offer

or

issuer,

issued

fornia, to

secu¬

rity in this state through any
son

Sept.

a

restricting

to

Securi¬

effective

process

eliminating

represent

to

company

of

to

21,1963:

whose

requires

securities

Corporate

became

organized

his purchase of the security.

(4) Section 26(g)

amendments

in

prospectus

a

statement

California

purchaser
a

by means of

written

a

the

the

to

an

following

author¬

now

to

sell¬

or

security within the state

any

guaranteed,
The

Section 24(g)

ing

issuing

.

(3) Four sections of the Florida

effective

makes it unlawful:

any person

security

CALIFORNIA

practices in violation of the Act.

(3)

an

1963

.

$25 filing fee must accompany

new

section

new

1,

(a) for
amination looking toward such

A

each
FLORIDA

Sept.
Continued from page 51

.

Bethlehem, Pa.

Huntingdon, Pa.

in-

Number

198

Volume

63^8

.

.

The Commercial and Financial Chronicle

.

Investment Companies Committee. Breakfast Meeting—Herbert R. Anderson, Distributors
New York, Chairman

must

advisers

vestment

take

within 60 days after issuance)

an

examination, either oral or writ¬

purchase

ten, for the purpose of determin¬

traded

ing

whether

sufficient
curities
as

business

laws to

and

adviser.

or

investment

an

examination fee of

$15

inate

act

a

(6)

from

30

riod

during

of

(7)

accept

may

offer

an

chase securities.

right

any

remedy

or

to

chase

time

to

which

offer

a

meets

quirements of the section.
(3)
ment

ing

in

ciaries of

a

re¬

invest¬

benefi¬

of its obligations if

for any

(4)
to

the
sued

by

or

502.3

the

same

class,

or

are

securities of

the subject of

(5)

Section

exempting

3(G),

and

(expiring

rights

inserted

was

to authorize the

to

provide for

an

examination of dealers and sales¬

which
or

the

written

be

may

or

both, to be taken by first-

applicants

who

apply

effective

is

and

offered

Securities
fective

the

of Section

(3)

include

to
a

"sale"

a

an;

security in
of

Act

train¬

April 11,

definitions

period

in
,

a

by

non-

or

or

for

other

whose behalf the offer¬
broker-dealer who is

or

offering

as

a

part

of

an

unsold

subscription taken by

participant in the distri¬

Kansas

to

ef¬

repeal

(3)

Section

26(b)(3)

Massachu¬

the

to

fee

Section

under

(9)

salesmen from $5 to
pose

of

a

a

transfer of
from the

man

broker

$10 and im¬

$10 fee for the recording

to

registered sales¬

a

employment of one

another

and

quire under Section 5

a

revised to

of

non-exempt

a

/■

incorporation

thereof

under

laws of the United States

territory

thereof,
ceived

if

no

or

or

amended

as

Securities

of

is

such

was

company" and "investment certif¬

tion for non-issuer transactions in

icate."

securities

(1)

amended to eliminate the exemp¬

80.05

registered

Subdivision
was

v

of Section

(6)

amended

(i) to exempt

Continued

on

a

to

the
any

re¬

sale

Underwriters,
Distributors,

Drexel & Co.

Dealers in
125 Yearn

v>

1838

—

.f;.y

CORPORATE

1963

AND

MUNICIPAL

SECURITIES

Underwriters and Distributors of
Public

Utility, Industrial and Railroad Securities

State, Municipal and Revenue Obligations

Members

-

Established 1910

£<

1mm-

mm

New York Stock

Exchange
American Stock Exchange
Philadelphia-Baltimore-Washington Stock Exchange

utcher
1SOO

WALNUT

PEnnypacker 5-2700
1500 Walnut Street

Philadelphia 1, Pa.




'

45 Wall Street

New York 5, N.Y.

•

ST., PHILADELPHIA

2,

PA.

Teletype 215-569-8800 • New York: BArclay 7-4641

Members: New York Stock Exchange
<

Sherrerd

&

•

Act

follows:

possession

commission

account

on

secu¬

MINNESOTA
Minnesota

secu¬

prior

corporation

a

re¬

rity.

exempt the

subscriptions for all

(b)

filing fee

$25 to accompany the notice of

intent to sell

Section

of

for

10

brokers from $50 to $100 and for

was

"investment

previously,

met.

1, 1964 (a) increase the registra¬
tion

The

24.

a

the

in

setts Securities Act effective Jan.

stop order is in effect under Sec¬
tion

through

MASSACHUSETTS

of
or

are

Amendments

bution, except during the time a
the

1963
of

any

ing is being made or by any un¬

allotment

amended

was

for

transaction

person on

KANSAS
of

only

registration

the account of the issuer

for

ditions

amended

was

or

broker-dealer

secondary market if specified con¬

agent shall

distributed

or

exempted

him

17-1252

broker-

during which the security is being

still

competency

partner,

a

of

to provide that every

derwriter

Section

director

security „by

a

registered

$2.

the

skill,

a

filing fee for

or

provides

now

Subdi¬

added to Section

was

26(b) to exempt any offer or sale
of

16

dealer registered as an
be

1,

(13)

v

was

state,

Section 5 of the Act.

warrants

Commissioner

Section

officer

July

vision

under

registration

existing

of

Subdivision

rities

securities,

the

502.5

is¬

organized

security.

market

if

in Section 502.11

men,

that

Act

follows:

(2) Section 23(f)

paragraph

eliminate

to

amended

definition

secondary

the

A

as

(1)

persons.

1963

V...

was

sale of

in

4,

charitable pur¬

Subdivision

related

prices

was

securities

for

poses. -•>.^

market

at

oil,

right

12 consecutive months to not more

of Section

corporations

for benevolent

(2)

(4)

amended

was

exemption

transactions by regis¬

dealers

1963

ing of such applicants.

Subdivision

(3)

Section 4(F) was amended

exempt

tered

%

July

the

registered by the

Act

follows:

502.4

Secretary of State.

an

effective

amended
as

Securities

Iowa

attempt to dispose of

ciation has been

in

„

unincorporated trust or asso¬

an

interests

other mineral lease,

royalties, by the issuer within

oral

application for registration as

an

or

undivided

or

effective

amended

was

registration in order to determine
The

personally li¬

be

gas

ex¬

Boston

the

sale of securities, other than frac¬

time

(1)

real estate investment
not

the

the

on

exempting

Securities

Maryland

the Act; but a new

under

MARYLAND

The

502.5

Corporation,

Committee, Breakfast Meeting—Andrew K. Marckwald, Discount
'•
New York, Chairman

subscribers

IOWA

'

by provid¬
or

to

and

Coast Stock

remove

Stock Exchange.

beneficial

of

estate

shareholders

shall

trust

real

a

is defined

trust

that

able

liability

The

interests

listed

has

repur¬

the

amended

was

the Pacific

on

under this

accept

or

of

paragraph is added

new

Section

du-; than 20

a

number

Golf

exceed 25.

(4) A
to

(5)

securities

emption for those

section if he fails within the pre¬

scribed

than

rather

Exchange and to

repur¬

No purchaser

for

description

by

Section 3

traded

purchaser

a

application

plicate application.

days the pe¬

15

which

re¬

amended to

was

single

a

exempt

do not

tional

qualification,

amended to reduce

days to

expiration

day

registration

(2) Section 13 of the Act (civil
was

60

Section 5

require

salesmen and investment advisers.

remedies)

the

the

and

stock

amended to elim¬

was

quirement.

fee

examination

the

for

se¬

$25 for the

examination of dealers and
of

exchanges,

salesman
There is

dealer,

registered

a

the

of

knowledge

and

national

certain

on

has

applicant

an

to

listed

securities

Convention

Group, Inc.,

American Stock Exchange

Philadelphia-Baltimore Stock Exchange

..

page

54

54

The Commercial and Financial Chronicle

Jack B. Mackey, Calvin Bullock, Ltd., Los Angeles;
Wilson A. Britten, Calvin Bullock, Ltd., New York

John

S.

Davis,

Republic

Mr.

&

National

Mrs.

C.

Bank, Dallas; T._ E.
Houser, American

Graham,,First National Bank,
National Bank, Austin, Texas

Willard

Commissioner

Report of IBA State

necessary

determine

may

appropriate

or

public interest

in

for the protec¬

or

tion of investors.

Legislation Committee
Continued from page 53
securities issued by

board

person

a

or¬

ganized for athletic, Chamber

Commerce, trade,
association
extend

from

six

(ii)

and

months

to

(2) Subdivision (14)
to

to

Section

80.06

issuance and

nine

the

of

rities of

to

permissible maturity for commer¬

ration

cial

substantially all

struments

negotiable

which

are

in¬

exempt.

any

issued

securities

exchange

such other
nection

Subdivision (12) was added to ex¬

empt

in

the

corporation,

with

assets
or

in

or

amended by adding

was

that
shall

at

by

subject

to

vision

as

any

common

regulation

(3)

carrier

Section 80.08

by adding
or

super¬

to the issuance of its

cations

own

for

cation

securities by a public commission,

was

Section 80.12

by inserting
all

times

registration by appli¬

shall

contain

such

infor¬

mation and representations as the

amended

was

provision that: "A

a

licensed dealer

stitution

in

ness

the

in

of

the

dealers

Section

unlawful

customers

and

segregated

by

members

American

rules

DISTRIBUTORS

•

For

.

over

.

.

BROKERS

•

the

of

New

their

York, tor with

Stock

Midwest

or

of

•

Ex¬

are governed

respective

'

the

Delaware

Newburger

&

Company

Philadelphia-Baltimore-Washington Stock Exchange

Pittsburgh

Lebanon

Act

LOcust 8-1500

shall

and

tion

Atlantic City

Vineland

ef¬

preferred shares
•

proceedings

are

registra¬

was

further

effective March 1,

1963 to change

previously

15,

a

requiring

issuer which

proposes to

security in the state,
service

has

post

amount

register

to

proposes

in

security

the

on

is

approved

statement

an

man's
four

statement

a

Section

was

(2)

To authorize the

General

under

Section

prohibited

June

a new

7,

Section
secu¬

(requiring dealers

surety

bond

by "the

in

an

Commis¬

$10,000

ing

to

information

investors

to

as

dividend

nor

Exchange

meets

the

re¬

quirements of this section if such

DEALERSAND

real

dividend

had

earned

and

been

received

actually

by

the

plicant through net profits.

Ardmore, Pa.

the

cate

and

In

Telephones Phila.t Klngsley 6-5000

had

no

new

Act

215-569-8887

which

Nevada,

Members New York Stock Exchange
Phila.-Balto. Stock Exchange

is

American

ments.

state

a

the

mayx

act,

(effective July 1,

1963)

unique in several basic require¬
Section

13

makes

it

any

person

from

years

thereof.

days'

the

notice

bond in the

be

cost

made

stances,

date

to
for

sum

of

in

of

$1,000 to

also
may

as

BONDS

AUTHORITIES

business in the state
dealer

or

as

a

CO.

Bldg., Philadelphia 2

LOcust 7-3646

•

from NEW YORK

Teletype 215-569-961 1
—

broker-

agent unless he is reg¬

PITTSBURGH

phone Enterprise 6289
—

phone Zenith 0821

a

cover

It

certain

such

NECKER &

Attorney

posting of

application

TURNPIKE, WATER AND SEWER ISSUES

Packard

entry

invesitgation.
no

New

of five
for 60

the

...

PHILADELPHIA

SCHAFFER,

in

of

the

PENNSYLVANIA

PENNSYLVANIA SCHOOL

an

is made

specified in¬

where

UND ER WRITER$

OF

of

restrain¬

business

Provision

General and

the

an
va¬

defendant from engaging in

securities

un¬

to transact

to

syn¬

to

York after the expiration

Specialist in

CITY OF

from

lawful for

to

dis¬

whereby

permanently

ap¬

the

estate

be made

'

previously

securities

of any

modify the terms

injunction

ing

method

a

application

NEVADA

New York: WAIker 5-0312

352-e

(3) By adding Section 359-g(4)

providing

and its Political Subdivisions

This

until

Attorney

furnished

sources

with

member of the New York

applicant

an

for

adopt rules and regulations relat¬

sense.

repealed.

sales¬

a

fees

years).

than

a

$5.00 to

dicate offerings after Jan. 1, 1961.

providing that the

fixed

(both

re¬

agency

state

notices.

and from

of¬

through

filing

$10.00 the fee for filing

the Nebraska

81-319 of

a

Exchange (Associate)

er's

provides that
Stock

for

Obligations of the

123 S. Broad St.,




intrastate

COMMONWEALTH

declaring

Midway 9-4900

fee

further state

NEBRASKA

Fidelity-Philadelphia Trust Building

Business Founded 1842

state

effective

authorized to issue securities from

BRANCH OFFICE: 105 Coulter Ave.

and

offer

and

state

acting

person

Section

Philadelphia, Pa. 19109

the

notices

that

so

now

basis in the common-law

Securities Act

WOODCOCK, MOYER, FRICKE & FRENCH, INC.

(1) By increasing from $2.00 to
$20,000

Mexico Securities Act

sioner of not less than
more

Law

tributions made by any issuer in

by (1) adding

48-18-35

to

Securities

issuer which

an

•

Stock

the

filing fee of $500 and

amended

1963

York

amended this year as follows:

was

consent to service of process by

quired only from
a

amended

New

connection

who is
Act

municipal bonds

CORPORATE FINANCING DEPT.

so

fective.

any

PENNSYLVANIA AND GENERAL

securities

suspended

until -the

and

the consent to

Ardmore:

Offer

$100,000) by adding a
filing with the SEC is ef¬ provision that A registered dealer

or

every

INDUSTRIAL AND UTILITY

said

to

such

pending

fer

market

it

to

by such statement.

Montana

amended

continue

long 'as

a

and

a

Administrator

The New

the

of
was

relative

SEC

Section

common

in

public

a

makes

Feb.

The
New York

Act

person

security

proceeding being instituted by the tion 48-18-20.3

*

/ involved

26, 1963 to provide rities act shall not apply to se¬
registration of securities curities presently or previously
shall automatically be suspended licensed
by the Superintendent of
upon a stop order or suspension Insurance and
(2) amending Sec¬

Members:

Street, Philadelphia 2, Pa.

is¬

that the

New York Stock Exchange • American Stock Exchange

1401 Walnut

11(3)

Securities

fective

Valley U. S. A.

NEW YORK
The

effects

with

ex¬

MONTANA

Section

60 Years Effective Distribution in

a

NEW MEXICO

'

'

'

.

the

any

of

means

was
•

>r

he

if

securities

for

any

changes."

f

or

funds; offering unless he' has filed a
however, this provision shall not statement
containing
prescribed
apply to dealers or brokers who information with the Administra¬

changes, and who

UNDERWRITERS

of sioner.

from his own securities and

are

least

a

place of busi¬

exclusively

of

15

sell

or

no

amount of

an

transactions, other broker- By increasing from $25.00 to $40.00
the fee for filing a broker-deal¬
or
specified institutions.

broker shall at

and

Act

member

a

company;

state

the

Exchange in

broker $100,000 and copies of the fidelity
under the bond are filed with the Commis¬

bank, savings in¬

a

trust

or

does not

Exchange

who has

person

securities

or

keep

funds of his csutomers in trust for
such

amended

NASD;

suers

or

provision that appli¬

a

the

the Com¬

''

carried

time

such

notify

a

of the

transactions

(5)

or

merger of such corporations.

desig¬

Fund

a

who is

person

a

term

registered

cancellation of the registration.

con¬

consolidation

a

the

of

Jackson W. Goss, Putnam
Distributors, Boston

Act; but Sec¬ member carries a fidelity bond
"broker-dealer," acceptable to the New York Stock

others,

and

missioner of that fact and request

se¬

of

sale

therein

units

of

provision

corpo¬

all

for

of

the

upon

registrant

the

corporation to the

one

1934;

nated,

added

any secu¬

curity holders of another

or

istration

Mrs.

the

that the

dealer

or

&

'

among

Securities

number

exempt

delivery of

months from date of issuance the

paper

(4) Section 80.10, providing for^

govern¬

was

include,

Thursday, December 26, 1963

.

Mr.

Worth;

defining

provides

.

.

under

5,

the termination of restricted reg¬

ment of the United States.

of

professional

or

purposes

officer

or

istered

the tion

Ft.

.

the

in-

t

Volume

Mr.

H.

Thomas

Mrs.

&

Number 6328

198

McGlade,

,

.

Shields

Company, New York

v.

junction

was

dent

a

to

granted

crime

applicant had
convicted

or

as

for

&

Mr.

been

crime

any

under

the

the

Mr.

Mrs.

Vanderbilt, Elair &
Burton Parker,

Amyas

Ames,

Securities

a

cash accounts within the

or

of section

is

partnership,

adding

felony or
Securities

York

(b)

of partners;

assets

which

cannot

adding Section 352-k.l

cash

secured

debtedness

board

(c)

fixed

deducting

the

Federal

assets
be

(less

and

readily
any

thereby)

in¬
in¬

(effective

Sept.

requir¬

broker-dealer required

governors

all

value

of

short

(except

the

e

of

William

securities,

market

long

exempted

and

securi¬

New York

in

capital,

the

or

dealer,
to

ordination

or

Mr.

Cary,

other accounts

after

Mr. & Mrs. Amyas Ames, Kidder, Peabody & Co.,

R.

&

Mrs. George M. Wilson, Equitable
Canada Ltd., Toronto

including
the

to

a

proprietary

of the broker

broker

securities
or

dealer

satisfactory

be

to

have

registeerd
and

of not less than

of

liabilities)
(a)

in

maintain

is deemed to
excess

1963)

1,

the
a

State

net

to

capital

$5,000. Net capital

mean

total

net worth (the

assets

over

adjusted by:

total

(or

losses)

in

unrealized

rent,

(1)

a

good will;

and

a

fixed
•

debt

•

securities

maturity
•

'

Continued

"

on

expenses;

organization expenses;

notes

ers' accounts,

and

MUNICIPAL

except in bona fide

DEALERS IN

BONDS

Primary Markets in
PENNA. UTILITY AND INDUSTRIAL SECURITIES
PENNA. BANK AND INSURANCE STOCKS

PENNA. MUNICIPAL AND REVENUES BONDS
AND

OTHER GENERAL MARKET SECURITIES

v

mMMMMWMWWmMMm

Janney, Battles
&

E. W. Clark; inc.

THE PHILADELPHIA

NATIONAL BANK
Organized 1803

Broad & Chestnut Streets

Philadelphia, Pa.
1401 Walnut Street,
/•

Philadelphia 2, Pa.

MEMBERS

Phila.-Balto.-Wash. Stock Exchange • American Stock Exchange (Assoc.)
Direct Trading Wires to: Carl M. Loeb, Rhaades & Co., New York • Burnham and Company, New York
Phones—Philadelphia, LOcust 8-3400
■' ,
New York, WOrth 6-5646-7
Bell Teletype 215-569-9839

New York

Stock Exchange

•




Representatives:
1 Chase Manhattan Plaza

New York City

and

a

which

date

all unsecured advances dnd loans;

unsecured

having

interest rate

fixed

partnership, in the

accounts; and deficits in custom¬

herein¬

as

in the case of non-convert¬
ible

sub¬

defined, and if such broker

partners,

prepaid

memberships;
insurance

customers'

7

adding unrealized profits

deducting

change

•' ""

defined:

agreement,' as herein¬

dealer is

of

accounts
after

estate; furniture and fixtures; ex¬

every

Securities

,

percentages pursuant
the

Mrs.

and

loaned

System;

th

below

of

ties)

&
v

cluding, among other things, real

ing

of

Reserve

deducting

specified

meaning

4(c) of regulation T of

Mr.
\

Kidder, Peabody & Co., New York; Mr. & Mrs.
Exchange Commission, Washington, D. C.

or

dealer

York;

Marache, Inc., New
& Co., Pittsburgh

broker

was

securities

Richards

broker

if

accounts

Granbery,

Kay,

the

and,
a

Co.,

such

of

accounts

dealer

converted into

By

&

the

Law.

(4)

Oliver

Mrs.

applicant equities (or deducting deficits) in

involving
New

inci¬

later

or

where the

had been convicted of

an

&

"

which

55

The Commercial and Financial Chronicle

.

Mrs. Fred W. Hudson, Ball, 'Surge & Kraus,
Cleveland ?

&

Mr.

.

•

"

page

--e

56

56

Mr.

&

The Commercial and Financial Chronicle

Mrs.

Curtis
&

H.

Bingham, Bingham,
Los Angeles
r

Hurry,

Federal Securities Acts

Walter

Report of IBA State

straddles in

or

commodity
offsetting

Legislation Committee
Continued from page
not

are

in

market
than

be

(3)

default,

value

5%

value,

55

is

below

the

5%

if

not

such

.

than

more

than

more

shall

face

value,

shall

be

a

percentage
face
ket

value

.

by

is

the

deduction

30

deduction

which
is

ment

of

30%

face

such
or

the

or

shall be

short

are

of

the

non

-

stock

of

case

security

such

which

ranking

preferred

prior

to

issuer, which is not in

arrears

as

to

is

in

90

all

other classes of stock of the
same

for

which

cumulative,

convertible

into

which

exchange¬
in

the

ac¬

broker

partner,

or

called

(2) in

the

and

money,

for which it is

dealer

30%;

con-

no

security is convertible,

counts

more

period of

a

securities

able,

value, such

or

se¬

other than the pay¬
of

other

mar¬

within

days, subject to

ditions

r

the

below

value; and if the

below

curities

equal to the

value

security

a

which is convertible into

the

percentage

(e)

(1)

has

a

been

redemption

redeemable

or

(2)

or

and

with¬

(d) deducting 30% of the market
value of all "long" and all "short"

than

20%;

those

in

the

contractual

spective

in

the

case

has

subparagraph

(c)

of

each

by

mitment

in

and

broker

in

accounts

inafter

of

contracts

representing

Humphrey, Inc.

that

the

to

if

such

partnership,
here¬

as

provided,

deduction

shall

be

ized

profit,

greater

reduced

in

than

by

SECURITIES

respect

the unreal¬

not

amount

percentage

de¬

provided for in subpara¬

'(c),(or

increased

the

by

event shall

no

profit

closed

on any

to

operate

increase

liabilities
which

dealer

or

of

the
sub¬

are

ordinated to the claims of general

Building

Pittsburgh

19, Pa.

Creditors

pursuant

to

subordination

tory

herein

(g)

deducting,
or

governmental,

state

year.

satisfac¬

a

agreement

in

which

out

the

of

dealer who is

prietor, the

of

case

not

are

the

(b) increased

Securi¬

Ohio

securi¬
payable
of

proceeds

in

dealers

the

from

(c)

which

and

directors,
issuer

the

as

of

and

months,

balance sheet of

a

a

statement

for

profit

and

either

year

preceding

most

recent

that

the

18

(d)

loss

er,

issuer

or

to

corporation, bank

or

sale to

to

issuer, to

institutional
al

met,

were

to
for

investor

any

a

dealer,

investor.

shares

$10

is

defined

pension

maximuin

the

registration

of

from

$10

in

certain

broker
not

or

used

business

of

course

dealer

as

to

increased
tion

trust

or

any

or

of which

a

trustee. V

any

\

of

profit-

(f)

cense

$50

holding

or

to

V1"

fee

to

men,

.

Fees under the Ohio Secu¬

expenses

the

annual

for

dealers

$75

for

from $75 to $125 for

salesmen,

$100

to

$150

from
and

the

a

DISTRIBUTORS

—

DEALERS

NORTH DAKOTA
The

Act

North

was

1, 1963
(1)

UPSON'

any

"corporation,

(Associate)

was

of

the

tion

of

Teletype

—

412 642-4116

u!




Telephone

PITTSBURGH
—

dealer,

association

19, PA.

Area Code 412-471-1875

or
a

Pennsylvania

—

to

or

consist

part
of

any

or

of

the

Section

New

cor¬

York

American

whose

FIRST

Stock
Stock

Exchange

Exchange

NATIONAL

buying

authorized

Pittsburgh

r

(Associate)

BANK

BUILDING.

Wheeling

Stock
Stock

PITTSBURGH.

Exchange

Exchange

PA.

15222

Telephone 412 261-7300

Private

prescrib¬

Wire

to

(Corporate);

412

Clark, Dodge & Co.,

642-3072

(Municipal)

New York

City

-

Branches:

im¬

prisonment for not less than three

;

MEMBERS

associa¬

ing penalties for willful violations,

previously

West Virginia

Established 1891

Teletypes 412 642-3071

10-04-18,

—

A. E. MASTEN & CO.

con¬

exempt sales to

dealers,

Ohio

any

prin¬

securities."

which

:

Stocks

to

buying of securities"

principal

a

(2)
•

sale

a

poration, organization

0ulleU

business

PLAZA BUILDING

or

amended

"registered

Corporate a

Bank

10-04-06(5), which

exempted

cipal part of whose business

&n's^SSn^^'ElCh-

UadelVhia~

Section

organization
sists

July

follows:

as

previously

EMERYJ C0MPH"

effective

Corporate and Municipal Securities

>

Securities

Dakota

amended

S

Wheeling,

W.

Va.;

Butler,

Pa.;

Jdhnstown,

Pa.

six

from

fee

a

UNDERWRITERS

em¬

five sales¬

employing

10

li¬

from

those

over

to

'

as

paid by

assets

(2)

over

and

qualifica¬

the

cover

ploying not

co¬

for

those
.

$25

to

examination.

increased

trust in respect

bank is trustee

amount to be

applicant

tion

pen¬

association
or

$10

qualification

by

mum

include

or

from

filing fee for registra¬

from $100 to $500 the maxi¬

insurance

fund

engaged in purchasing

business.

in the

se¬

trans¬

™

the

$20

to

S

in

se¬

description. Also

registration fee for

the

sale

or to an

employees'

.trust,

securities,

liabil-

(1)

$25

to

sole pro¬

a

of

excess

or

actions.

(e)

Institution¬

corporation, bank,

company,

sion

$300

curities

amended

was

exempt unconditionally a

to the

from

increased

deal¬

a

of

pro¬

only if prescribed con¬

company

ditions

an

increased

the

insurance

a

$50

to

recapitalization

curities by

1707.3, which previously exempt¬
ed

issuance

$75

of Section

(D)

$25

a

fee

the

or

from

the minimum fee and from

fiscal

date

limited

a

reorganization.

.

of operations).

year

Subdivision

(2)

within

date

a

$10

to

filing fee for the

posed

of the issuers' officers

names

to

during

recognized securities manual

a

(the

sold

increased
the

specified information is available
in

$5

number of persons.

secondary

about

a

-

the filing fee for notices for

effective

amended

of securities

market

(3)
the

statement

municipal

or

ties

securities
licensed

ities which have not been incurred

Established 1914

the

regarding

Sept. 24, 1963 to exempt sales by

defined; and

broker

Corporate Affiliate Glover & MacGregor, Inc.

of

was

sharing

capital;
excluding

effec¬

follows:

as

filing fee of $20 must

a new

an

in such commit¬

loss)

transactions

(f)

1707.03

Act

how¬

commitment

an

the

unrealized

an

with

individual

any

broker

Union Trust

the

that this deduction shall not

ever,

net

MUNICIPAL

of

and,
a

partners,

defined;

com¬

proprie¬

accounts

ment; and that in

AND

each

and

capital,

dealer is

or

unrealized

CORPORATE

the

contemplated

dealer

or

broker

the

other

one

increased

were

10, 1963

accompany

in the county

or

(1) Subdivision (M)(3) of Sec¬

re¬

mar¬

a

existing contractual

any

tary

is

long

net

than

more

ties

of

above

position

nor

tion

whenever

short

years

(a)

more

jail for not less than three months

a

value

graph

&

of

(which shall be the market

net

five

nor

year

& Co.

York

general tax.

value

ket)

than

one

Thors, Kuhn, Loeb

Act

Oct.

tive

OHIO

specified /in

there

than

less

not

Emerson

rities

im¬

prisonment in the penitentiary for

open

commitments, the

percentages

authorize

to

J.

New

than five years,

more

nor

amended

was

defined;

who

dealer

or

a

months

Mrs.

&

.

of

accounts

hereinafter

as

deducting,

duction

Hulme, Applegate

dealer

or

apply to exempted securities, and

days.

dividends, the future commodity contracts (other

deduction shall be

in

other

or

broker

the

partnership,
partners

broker

of

case

exchangeable for other

not

the

market value,
market

but

below

30%;

carried

proprietary

of

"spot"

any

and, if such broker or dealer is

deduction need not be made

market

5%

30%

be

accounts

same

contracts

positions)

capital,

in the

value; if the market value
is

shall

provided, however, that such

face

deduction

of

deduction

the

more

the

all other securities, the

on

the

hedging

or

commodity

the

those

/and

Thursday, December 26, 1963

.

Mr.

Committee, Breakfast Meeting—Albert Pratt, Paine, Webber, Jackson & Curtis,
Boston, Chairman

spreads

.

.

for

Volume

Mr.

&

Mrs.

198

Number

6328

James

F. Jacques,
First
Company, Dallas

.

Mr. & Mrs. Kurt H. Grunebaum, New

Southwest

Kocurek,

Frank

R. Newton, Jr., Lentz, Newton A Co., San
Antonio; Tom Ball, Jr., Bache A Co., Houston

those

employing

10

over

salesmen. The filing fee for

application to transfer

,,an

license

a

$10 to $20.
the

•

filing fee for

cation

to

appli¬

an

in

deal

out-of-

state real estate.

amendment

to

204(b)(6) of the Oklahoma Secu¬

18, 1963

Administrator

the

require the payment of

a

able

with

in

fee

written

connection
oral

or

to

$25

tion

of Section

gation of
bond

Oregon

(2)

59.310, voiding obli¬

dealer under

when

agents

the

surety

a

principal

his

or

employees have hon¬

and

suffered

damages
to

ed

apply

securities

Act

Subdivision

(5)
59.340

and

Section

to

exchanges,
called

for

on

well

as

2

of

secu¬

subscription

by

warrants

Subdivision

tion

so

listed

of

12(c)

exempting

59.120,

or

Sec¬

transac¬

tions by registered dealers in the

securities

in

market

secondary

about which specified information
is available
was

(3)

A

section

evidence

practices

repealed,
shall

to

was

which
that a

require
an

receiver

a

conservator

or

or

The
Act

amended effective

1963

AMERICAN

with

which

registra¬

application




by

direct
and

interest

an

obligation of

a

in

or

adding

a

is

STOCK EXCHANGE

STOCK EXCHANGE

STOCK EXCHANGE

(ASSOC.)

state bank

to provide that all fees

(2)

and charges collected by the Com¬
missioner
State

shall

be

paid

into the

UNION TRUST BUILDING,

Treasury and credited to the

State Bank Fund.

The
was

Tennessee

Teletypes 412-642-4120 & 412-642-4121

as

follows:

Subdivision

(1)

engage in

others
or

as

Act

amended effective March 21,

1963

defining

as

(c)

of Section

dealer,

was

exclude persons who

the business of advising
to the value of securities

to the

PITTSBURGH 19, PA.

Phone 471-4700 Area Code 412

Securities

advisability of invest¬

NEW YORK

YOUNGSTOWN

CLEVELAND

Stambaugh Building

Union Commerce Building

New York 5, N. Y.

Youngstown 3, Ohio

Cleveland 14, Ohio

Beaver Falls, Pa.

212-227-6836

216-747-6701

216-781-0308

412-843-3500

120

Broadway

unless

provision

PHILADELPHIA-BALTIMORE

a

be

Continued on page 59

(1) to exempt under Section

representing

irrevocable

the

•;

securities

July 1,

55.1903(3) securities issued by and

to

the Commissioner, was

NEW YORK STOCK EXCHANGE

Securities

Dakota

South

was

amended to

for

amended

$300 to $1,000 the maximum

PITTSBURGH

any action arising out of a violartion of the Oregon Securities Law

connection

to increase

registered

waived by

SOUTH DAKOTA

48-1602,

tion

and

registra¬

prospectus

defendant's assets.

the

consent that service of process in

in

tion of securities

the

printed

in connection with all sales

Members

added,

applicant for regis¬
file

with

a

used

examination fee of $25 ,of

connection

from

ing

that

are

the Fitch

59.210

Section

an

re¬

Commissioner

said

TENNESSEE

new

non-resident
tration

remove

in

to

provide

from

/

replacing
was

in specified manuals,

amended to

Manual.

quire

of Section

amended

was

Singer,Deane & Scribner

Section

to

dant

autho¬

as

approved.

(2)

which, in the opinion of the

Subdivision (b)

48-1608(3)

of securities.

be appointed for the defen¬

listing

for

notice of issuance

or

and all other informa¬

exempt

approved

(3)

added

require

notice of intent to sell in¬

clude any
tion

to

registration

Section 48-1608(5), requir¬

em¬

amended

was

whenever the

and

of

rized

rights

a

was

for

(4)

apparent course and

were

1963:

4

upon

rities

that

48-1608(1)

taking
place, he may petition for an in¬
to
junction against such practices

amended

was

Subdivision (g)

Section

fee

>

of

reason

may

59.110

to

of their authority."

fraudulent

Securities

by

agents

to

and scope or

that

amendments

Subdivision

of the issuer.

ployees "acting within the course

for

per person.

adopted effective May 6,
(1)

selling; determination of the qualifications

or

violation of the Act, was amend¬

scope

OREGON

the

a

purchasing

in,

ing

securities.

any

examination

following

Corpora¬

A provision in Subdivision

believes

The

the appli¬

on

the

on

George M. Kaufman, Kaufman Bros. Co., Norfolk,
Va.; R. Willis Leith, Jr., Burgess A Leith, Boston

Youngdahl, Aubrey G. Lanston A Co., New York; Mr. & Mrs. Alfred F. Tisch,
Fitzgerald A Company, New York

Commissioner.

(4)

reason¬

investment advisers, such fee not
to exceed

be made

may

by service

Mr. & Mrs. Clifford G. Remington, Hess, Grant A
Remington, Philadelphia

Mrs. Arnold J.

provisions of the Act and paid all

Section

rities Act effective June
authorizes

Mr. & Mrs. C. Richard

York Hanseatic Corporation, New York; Mr. &
Rauscher, Pierce A Co., Inc., San Antonio

estly and faithfully complied with Commissioner, is pertinent to the

OKLAHOMA
An

cant

7

>

increased from $25 to $150

(g)

made,

increased from

was

57

The Commercial and Financial Chronicle

.

.

BEAVER FALLS
Sahli

Building

The Commercial and Financial Chronicle

'

58

Theodore C. Henderson, T. C. Henderson <6 Co., Des Moines; Mr.
Mrs. Robert H. O'Keef, Marshall Company, Milwaukee

&

Mr. & Mrs. John F. Mcran, Cooley A Company, Hartford, Conn.;
Hans A. Widenmanri, Carl M. Loeb, Rhoades A Co., New York

H.

Robert G. Stenger,

The Milwaukee Company, Milwaukee; Joseph T. Johnson, The Milwaukee Company,
Milwaukee; Edde K. Hays, Dean Witter A Co., Chicago; Frank
L. Reissner,
Indianapolis Bond A Share Corporation, Indianapolis

Leonard

.

.

.

Thursday, December 26, 1963

Mr. & Mrs. Norman E. Heitner, Yates, Heitner A Woods, St. Louis;
Royden E. Jacobus, Vilas A Hickey, New York

Flynn, McDonald A Co., Cleveland; Jack 0. Doerge, Saunders, Stiver A Co.,'Cleveland;
Richard
B.
Walbert, Blyth A Co., Inc., Chicago;
Robert W. Haack,
Robert W. Baird <£ Co., Inc., Milwaukee
■

Ah

•®sf

William
Mrs.

^r'

R. Chouinard, National Bank of Commerce,
Seattle; Mr. &
Alger B. Chapman, Jr., New York Stock Exchange, New York

^

Bank,

St.

Louis;

John




C.

Ed

W.

Franklin,

i?atu/naL Bank, St. A Trust
Louis; Russell T. Williams,
Wachovia Bank

Clark,

Dittmar

A

Co., Dallas;

Goodwin, Johnston, Lemon

Co.,

First National

Winston-Salem,

N.

C.

Mr. & Mrs. Arthur
A Co., Washington, D. C.

E.

Mr. & Mrs. Edward M. Rowan, R. W. Pressprich A Co., New York;
Norman D. Erlanger, Asiel A Co., New York

Mr. & Mrs. B. P. Lester, Jr., Lester, Ryons A Co., Los Angeles;
Liberty

National

Bank

A

Trust

Co.,

Mr.

Oklahoma

&

City

Mrs.

Tom

G.

Hilborne,

Volume

198

Number 6328

.

.

.

59

The Commercial and Financial Chronicle

to provide

amended

Report of IBA State

that

such

no

action shall be brought under this
section

the

for

Legislation Committee ""fhaf ^

Continued from
that

for

cleared

sioner must
each

this

to

offer

required

precede

to

sell

to

or accompany

investment advisor.

an

(c)

48-1619

was

(H) exempting

isolated transactions by

amended to exempt Securities is¬

where

sued by

and representing an in¬

met;

terest in

or

specified

Federal

Subdivision/ (I)

direct obligation of

the sale of beneficial
an

Loan

and

amended

was

to

fixed

or

sold by

or

by

Insurance

of'

Association, any savings and loan

investment

conditions

^■

specified

Amendments
curities

the

to

Texas

Se¬

Aug.

23,

age

of 21

and

(except whom he

was

by

one

employed at the time

well registrations).

of making application. The fee for
for reg¬ dealer registration and renewal
istration of securities was elimi¬ was increased from $25 to $100;

The maximum fee of $300

where
the

denied

Commissioner

increased from $5 to $20 and

was

may

for renewal of
men

Section

authorizing

8,

registration of salesmen

the fee for

is

application

an

retain the fee.

(2)

included the following:

1963

shall

salesman

and renewal ties dealer other than the

securities

of

for oil and gas

that

effective

Act

a

the

$25 to $50 the mini¬ tion, be employed by any securi¬

fee for original

registration

as

reached

amended to in¬ shall not, at the time of examina¬

nated, and a provision was added

:

texas

\

exempt

to
if

banking under the insurance

are

interests by

club

Commissioner

and

laws of Tennessee.

from

was

Also, every applicant for

1,1963 registration
have

(1) Section 6
mum

requirement for issuance of a

a

Virginia Securities Act license.

follows:

crease

in¬

any

regulated

company

as

as

amended effective July

an¬

variable

nuity offered

issuer

an

conditions

Savings

a

exclude any

surance

(8) Section 48-1632 was amended
to add Subdivision

Section

any

$50 fee for registra¬

a

security,

ing

the

under

section.

(5)

provide

tion of

securities

any

registered

be

of $25,000.

excess

Section 45-1602(J), defin¬

(11)

require

not

(7) Section 48-1628was amended

Commis¬

by the

use

shall

he

but

net worth in

a

prospectus

the

of

copy

a

worth,

57

page

The West
was

every ap¬

written examination

to pass a

man

or

rnnrrapt
contract.

'

require

plicant for registration as a sales¬

securities.

west virginia

year

;

missioner may

requirements

and

for the registration of

the

of

recovery

ment, advisers,

the

registration of sales¬
$10.

from $5 to

(4) A new Section 28 was

added,

met; and Subdivi¬

are

Commissioner to limit the price at providing that any security which
providing for
incorporated under sion (J) to exempt the issuance
which registered securities may be has been previously but is not now
registration of dealers, agents and
laws of any state of such associa¬ and
delivery of securities of a
sold, was amended by adding a registered by qualification may, in
salesmen, was amended by in¬
tion is a member or stockholder
corporation to another corpora¬
provision that in no instance shall the discretion of the Commissioner,
serting a provision that the Com¬
of the Federal Savings and Loan tion
or
to the security holders
commissions be paid on the aggre¬ be offered and sold by registered
missioner
shall
require
as
a
Insurance
Corporation, and any thereof in connection with a con¬
dealers in over-the-counter trans¬
condition of registration for all gate subscription or sales price, ex¬
credit union approved and super¬ solidation or merger of the cor¬
actions.
The Commissioner shall
registrations granted after the cept to the extent of payments ac¬
vised by the Superintendent of
porations.
effective date of the provision that
regulate the offering and sale of all
Banks of Tennessee.
tually made thereon, provided,
(9) Section 48-1648, providing
the applicant (and, in the case of
such securities and shall register
(6) Section 48-1624 was amended penalties, was amended to reduce
however, that this provision shall
a
corporation or partnership, the
to require the registration of in¬
dealers to buy, sell, trade or other¬
the
minimum
fine
for
misde¬
not apply to any security registered
vestment
advisors;
to
require meanors from $500 to $50; to re¬ officers, directors or partners to
wise deal in such securities.
be licensed by the applicant) pass with the Securities and Exchange
dealers to post a surety bond of
the

duce

not

less

that

no

as

than

provided

$10,000,
by

a

whose net worth exceeds
and

sioner shall by rule or

require as
tion

that

advisor

a
a

have

or

fel¬

fine

felonies

for

from

$25,000;

duce

the

successfully

maximum

prisonment

of

term

im¬

in the state peniten¬

tiary from 10 years to 5 years.

regulation

investment
net

Section

(10)

voidable sales
in

contract for sale

or

violation

making

48-1645,

the

of

Act,

was

13,

written examination

a

applicant's qual¬

to determine the

ifications

$10,000 to $5,000; and to re¬

minimum

a

for

dealer

condition of registra¬
dealer

fine

$1,000 to $50; to reduce

maximum

the

provide that the Commis¬

to

minimum

onies from

such bond shall be filed

prerequisite

a

Section

(1)

association

and

in the business of dealing in

gage

securities

and selling

ices

as a

Company Act of 1940.
(3) Section 12

dealer or adding

a

was

Wisconsin

The
was

amended by

Securities

effective

amended

Continued

provision that the Com¬

Act

Aug.

on

15,

page

60

salesman, or rendering serv¬

a

as

competency to en¬

wisconsin

Commission under the Investment

as an

investment adviser. This

condition may be

waived as to any

applicant or class of applicants by
action
of
the
State
Securities
Board.

Section 7 was amended by

(2)

adding

new

a

Subsection D pro¬

viding that if the fiscal year of

than

90

terminates

issuer

more

Underwriters

—

Dealers

—

Distributors

statements

filed

certified by a

statements

as

PA.

not be

need

public accountant if

certified

they are accompanied by

Corporate and Municipal Securities

19,

PITTSBURGH

of the filing
required financial statements,

the

BUILDING

PORTER

days prior to the date
of

COMPANY

&

THOMAS

the

Municipal and Corporate

of the

end

the

of

Securities

preceding fiscal year of the issuer.

Subsection B of Section 9,

(3)

providing that the total expenses^
marketing securities shall not

for

any
UNION TRUST BUILDING

amended to omit
•v

NEW

YORK

'

.■■■■/■

MEMBERS

'

STOCK

STOCK

EXCHANGE

PHILADELPHIA-BALTIMORE STOCK EXCHANGE
BOSTON

STOCK

penses.

AMERICAN STOCK EXCHANGE

EXCHANGE

PITTSBURGH

of

organization ex¬

.

civil
revised.

(4) Section 33, prescribing

liabilities, was completely

(ASSOC.)

CHAPLIN, McGUINESS & CO.

Subsection G of Section 29,

(5)

(ASSOC.)

EXCHANGE

exceed 20%

aggregate

price at which the securities
sold
to
the
public,
was

are

PITTSBURGH

•

the

in
the

Members
New

prescribing fine or imprisonment
BELL TELETYPE 412 642-3080

TELEPHONE 412-471-8700

claring

Pershing & Co., N. Y. C.

a

cash dividend out of any
than actual earnings,

Section 5

(6)
tions)

was

(exempt transac¬

amended by revising

Subdivisions E (transactions by
with

suers

security

holders),

connection with
mergers, consolidations or
corporate assets), H (sales

certain
sale of

to institutional

tions

buyers) and O (sales

met).

are

New

limited number of persons).

to

Securities

a

A

new

Subdivision R

to exempt
any

was

MOORE, LEONARD & LYNCH
•

_

New

.

.

under
\

section

Section 6

Building, Pittsburgh 19, Pa.
Teletype

Direct Private Wire to New

New York Telephone
Dlgby 9-3650

York, Greensburg, New Kensington

and Washington, Pa.




dealer

(other than Sub¬

York

Correspondent

—

Offices

St. WHitehall 3-4000

Carl M. Loeb, Rhoades & Co.

UNDERWRITERS
DEALERS

KAY, RICHARDS & CO.
New

York

new

Utah

Pittsburgh Stock Exchange

IN

Philadelphia-Baltimore-Washington Stock Exchange (Assoc.)

CORPORATE

a

Stock

Boston

(Assoc.)

Exchange

.

AND
Correspondents

and

Wire

Private

Harris, Upham ,& Co., Gregory
E.

Ames

&

Systems:
& Sons,

Co., Limited

SECURITIES

Act

(effective

May 14, 1963), based on the Uni¬
form Act with

American Stock Exchange

Stock Exchange

A.

The

'•

'

MEMBERS

DISTRIBUTORS

MUNICIPAL

6-E).
utah

412 642-3083

281-0358

added

the sale by the issuer of

Pittsburgh Stock Exchange

Pittsburgh Telephone

New

Office—40 Wall

American Stock Exchange

York Stock Exchange

Union Trust

New York

securities Which would be ex-

empt if sold by a registered

'

CORPORATE AND MUNICIPAL SECURITIES

(ex¬

empting certain sales by an issuer

Corporate and Municipal

-

DEALERS

DISTRIBUTORS

UNDERWRITERS •

provisions

added in Subdivision I

were

.

Teletype 412 642-2161

>

outstand¬
ing securities if prescribed condi¬

in

MEMBERS:

BLDG., PITTSBURGH 22, PA.

Telephone 412 471-3900

by registered dealers of

Underwriters—Distributors—Dealers

1

is¬
G

Stock Exchange (Associate)

in

(transactions

1877-EIGHTY-SIX YEARS OF LEADERSHIP-1963

PEOPLES BANK

repealed.

was

Stock Exchange

Philadelphia-Baltimore-Washington

other

fund

Private Wire to

American

knowingly participating in de¬

for

Pittsburgh Stock Exchange

York Stock Exchange

Street

Floor,

Union Trust

Bldg.,

Pittsburgh

19, Pa.

Bell Teletype 412 642-3035

Telephone 281-3241,

few modifications,
BRANCHES

includes

antifraud

quirements

for

provisions,

the

licensing

re¬

of

broker-dealers, agents and invest¬

Butller,

Erie,

Meadville,

New

Castle,

Uniontown,

Warren, Washington, Pa., and Clarksburg, W. Va.

The Commercial and Financial Chronicle

60

.

.

Thursday, December 26, 1963

.

Report of IBA State
Legislation Committee
'—

"7
t

j

Continued from page 59

!

1963 to increase from

\

,

$25 to $50 the

filing fee for each application for
a

dealer's

investment adviser's

or

tive

(5)

mlm

in¬

on

(14 states):

Connecticut;
Florida;
Illinois;
securities;, Maine; Michigan; Nebraska; Ne¬
from $2.50 to $5 the fee for each vada; Ohio; Pennsylvania; Rhode
notice for the sale of securities by Island;
South Dakota; Texas;

\9b\

««*. Wf

licensed

for

A

fee

of

$5 is

Washington; and Wyoming.
(2)

agent's license.

an

dend

B

Regarding Tax
Distribution of General

Motors

the

Stock

Du

to

as

pursuant to

of

stock

of

another

orders

indivi¬

on

taxable divi¬

distribution

stockholders

Memorandum
on

State income tax

duals does not treat

APPENDIX

;

^oul'Z

dealer.

charged for each examination

now

jML*

(1) No state income tax
dividuals

tion for registration of

a

.

rulings.

filing fee for each applica¬

mum

UHW»5Trf

Igfr 40UISANA
of houma
Lb

re¬

be changed by adminis¬

may

from $160 to $200 the maxi¬

cense;

The conclusions

of the states in group

some

trative

license; from $5 to $10 the fee for
each application for an agent's li¬

rulings.

garding

to

company

enforcing the

antitrust laws (22 states):

Pont
Alabama: Return of capital, ad¬

Shareholders.

justing basis of Du Pont stock.

Pursuant to Court Order Cru¬
Arkansas: Return of

der the Antitrust Laws.
'■Z

'

Zr: '

mmJ

.

These issues
this

are

those underwritten

among

by accounts managed

year

or

I

Colorado: May elect to treat GM

Federal Income Tax

co-

Public

ZMSMMM:

managed by Nuveen.

Law

87-403,

Feb. 2, 1962 amended

Among

managers

heading accounts, Nuveen

tion

has, during the last six years, advanced from

1^4

WM

11th

to

3rd

in

place in terms of total

the

dollar

underwritten
managers

and

volume
from

of

5th

in the number of

4th

to

new

dollar

by

from 5th to

revenue

of
it

revenue

bond issues

managed

Because
many

or

outstanding

industry, the

so

firms

in

our

improvement

among

xv

Delaware: Return of

(or

received

de¬

Georgia: Return of capital, ad¬

treated

as

return of

a

Return

spect to which it is made.

(Under

prior federal tax law the fair
ket

value

the

of

Kentucky: Return of capital, ad¬

justing basis of Du Pont stock.

mar¬

distributed

Louisiana: May elect to treat GM

GM

stock
stock would have been taxed to the

income).

as

of the stock distributed

ceeds

ordinary

If the fair market value
(GM)

^

the basis

of the

ex¬

as

dividend

stock.

'

-

,

.

taxable

(Du Pont), the gain is recog¬
extent of the

is taxable.

ample

of

the

provision

was

excess

The following ex¬

application of

Committee,

MfM

allocate

must

owns

basis

a

to

GM

stock

Jersey;

New

taxable

Not

but

allocate

must

basis of Du Pont and GM stock

un¬

der formula.

North Dakota: Return of capital,

single

a

share of the stock of Du Pont which

has

and

adjusting basis of Du Pont stock.

individual

"An

Pont

Du

Hampshire;

New

using assumed values for Du Pont
and GM stock:

of

North Carolina:

this

given in the report

of the Senate Finance

W*,«*

but

under formula.

and

^■sr

■

issippi:

basis

nized to the

(ftGIN) SCHOOl

*

'

with

stock

made

961

return of

as

Maryland; Massachusetts; Miss¬

Not

5a£

or

capital, adjusting basis of Du Pont

respect to which the distribution is

"

capital, ad¬

re¬

Du Pont shareholders

400,000

of

re¬

justing basis of Du Pont stock.

C^0,.?>2X

12

capital, adjust¬

ing basis of Du Pont stock.

capital and

its full fair market value will

Nuveen's

3^N»Vi

capital, adjust¬

ing basis of Du Pont stock.

antitrust distribu¬

an

tion, the distribution will be

duce the basis of the stock with

position in its field is gratifying to all in this

of

capital, ad¬

justing basis of Du Pont stock.

Kansas:

v^S°;

the

organization.

return of

as

justing basis of Du Pont stock.

Iowa: Return of

V;«o0

expanding

of

Sec¬
gen¬

dividends

duction) in

among

X«^N>

keen

or

Idaho: Return of

co-managed.

competition is

dividend

shareholder not entitled to the

corporate

issues of all

purchased by accounts

new

a

individual shareholder

an

any

bonds

Nuveen has led all others in the number

as

capital, adjusting basis of Du Pont

eral, that where stock is received

types purchased. During each of the last five
years

^i$r

7th

volume of all bonds underwritten,

approved

provides, in

which

1111

stock

the Internal stock.

Revenue Code to add

off

capital, ad¬

justing basis of Du Pont stock.

him

of

$100.

In

Return

Oregon:

of capital,

ad¬

justing basis of Du Pont stock.

C0Uml,l'''U

a

South Carolina: Not taxable but

distribution pursuant to the terms

must allocate basis of Du Pont and

of

"S'^ IS,44

GM stock under formula.

-om*^00'00*

antitrust order he receives

an

from

that

of the

Amir v

cause

for

the

of the
tors

shares

Du

stock

Pont

($100)

shares of General Mo¬
received

stock

($60),

that

so

after the distribution his basis for
the

Pont

Du

stock

is

$40

($100

capital, adjusting basis

Return of

of Du Pont stock.

is

by the fair market value

1V3

Tennessee; Utah; Wisconsin:

Be¬

of the distribution his basis

reduced

-0-"

corporation 1%

General Motors stock.

(3) State income tax on individ¬
uals bases state tax

federal tax

on

determination

federal

or

of

ad¬

justed gross income under Internal
Code

Revenue

as

currently

amended, thereby adopting federal
tax

provisions summarized above

iiiShf

:;vl;5SSi™IS

minus

■

iillillli

(Incorporated)

1

liils

Thus,

no

income

or

NEW YORK

"

ilii!

5

gain is

recognized to this share¬

holder because of the distribution."

^^K)W Colvmbus Dallas

Detroit

Los Angeles

Sao Francisco

Omaha

Seattle

St. Paul
The

following

conclusions,

garding state income tax

it;
.
,

on

re¬

dis¬

tribution of GM stock to Du Pont

shareholders

pursuant

to a court

order under the antitrust

based

on

an

individual
in

a

laws, are

examination of state

income

few cases,

New

Vermont;

State Individual Income Tax

Philadelphia

St, Louis

Hawaii;

Alaska;

tax

laws

and,

specific administra¬

Minnesota;

IVIonatna; Indiana (new act July 1,
1963);

CHICAGO
n




(9 states):

# Villi
Wis.

|j|il;:-

$60).

Mexico;

and

New

York;

West Virginia.

(4) State income tax on individ¬
uals would
able

uted

probably treat

dividends
to

company

the

tax¬

distrib¬

of

another

shareholders

pursuant

as

stock

to

orders

forcing the antitrust laws

en¬

(5

states):

Arizona;

California;

Oklahoma; and Virginia.

Missouri;

'

'.'.

i

i

198

Volume

.

Continued from

12

page

ator.

We

being

have

loans to
would

much

are

in

ested

effective

an

one.

confined

projects that
the

inter¬

more

therefore

achieve

in

our

thought

we

constructive

a

of

economy

the

rowing country.

re¬

bor¬

insisted

has

staffed with

nical

Followed
We take great care

capacity

borrower to
to

of

resources

his debt.

repay

a

managerial and tech¬
charged not

and

of

with

but

supply,

power

the

planning of
to

program

in¬

an

cover

ex¬

pansion.

prospective

foreign

use

of

adequately

only with the day-to-day admin¬

These

in assessing

the

creation

entity,

personnel,

vestment

v

kind, the Bank

the

on

power

proper

not. In case

way or

of this

case

istration

V

Sound Lending Principles

and

as

paying its

was

after

also

the

61

body knew whether the business

.

first objective to be a big oper¬

sult

>

-

Borrower and Lender

i

We

•

The Commercial and Financial Chronicle

.

.

World Bank's Role

a

'

f

Number 6328

We look

institutions

other

and

which understand

how to

capital

are

vital

growth,

and

their

employ

economic

to

existence

can

broadly at the entire economy of

enable the Bank and other inves¬

the

tors

country concerned, since in¬
in

vestment

signed project
over-all

the

even

best

de¬

of

founders.

economy

America

To

weakness.

We

for

minute, the Bank

a

in that

counts

spot,

of

region 32 organizations created to

physical, financial and hu¬

provide electric power, to develop

complete study,

a

Washington
what

and

man

how

well

the

on

available

are

resources

they

being

are

and

used.

perform

economic

or

fiscal pol¬

entities,

28

brought

into

from the effectiveness with which

help

the

capital

they

that

following economic
icies

that

will

seriously

be

can

detract

employed, we do

of

loans in that

new

coun¬

try.
A second hallmark of our lend¬

ing is that it is used for activities
which will increase essential pro¬

of

to

borrower

We

repay.

that

have concentrated on projects
basic

are

power

and

railways
the

lead

to

expect
facilities

We

ports.

operation

growth,

development of
systems,
roads,

the

especially
electric

economic

to

these

of

production of

greater

$900

some

loans

our

lending

almost

—

Latin

in

America.

Equity Investment Encouraged

duction and increase the capacity
the

the

together,

and

Bank,

received

all

32
or

with

operation

Bank

million
of

these

Of

organized

were

have

half

not make

other particular

some

function.

country is

find

we

clients

operate ports or railways, or

and

to

its

among

a

When

to

up

Latin

to

both in

make

of

shore

to

back

go

in¬

strength

struggling

be lost if the

can

from

build

to

stead

We

especially interested in

are

creation

the

of

holder-owned
finance

The

has

and

this

field

its

to

New York and

in

lead

the

all tax ♦exempt

affiliate, the In¬

Finance

ternational

been

dozen years,

a

given

now

devel¬

has

Bank

working at this for

help

to

industrial

private

opment.

share¬

private,

companies

carries

Corporation,

useful

goods,

and

one

nds from any

Pi

and most diversified of secondary

of the

strengthening of the inter-, exploring all proposals for finan¬

a

national

a

position that ulti¬

trade

will

mately

growth of savings,

living

tor lift

help

standards in the borrowing coun¬

If export consultation or for¬

try.

eign staffing is required, we see
that the

prospective borrower ob¬

it

tains

and

pay

the

Bank

help

sometimes

we

loan is made,
only follows the

Once

for it.

not

a

the project during the
period,
but
also

progress of

which

cial

it

thereafter

posal

in

points

finance

of

14

of financial information

create

we

now

widen

the

profit

where

areas

ownership

private

flourish

can

motive

dor¬

awaken

can

the

and

Business

mant energies.'
The Bank not

r

but

enterprises,

good

the

to

promising countries as well.

more

Principles of John Nuveen & Co.
'

only likes to lend

The founder s
JN&Co.

five principals of doing business, followed.by his

recognizes the excellent record of payment of tax-exempt securities as

in them since

spread over more than 40 of the
less

they
cluster in

countries which have been show¬

ing the most satisfactory economic

planning bodies,

to 14

countries.

underdeveloped

the

nevertheless,

Latin

to

tend

America,

in
half

instance,

For

performance.

than

more

our^commitments have been made

Colombia, Mex¬

in four countries:

JN&Co.

Like

lend

bank,

any

to

prefer

we

to

and

enterprises,

good

good enterprises do not al¬

where

willing to
pitch in and help create them. In
exist,

ready

Latin

America,

often

have

electric

power

company

an

asked

loans

existed.

was run

activity

of

to

we

make

where

JN&Co. tries always

x

to

the issuer

on

to anticipate new developments in public finance so as to make funds available

reasonable terms for all sound

projects, and obtain for the investor the rewards of pioneer¬

ing without undue risk.
JN&Co. maintains contact with the issuers
ends

only

JN&Co.

upon

buys and

company

of all Public Bonds it handles, believing that its

final repayment of the issue.
owns

■

authority
not

or

uncom¬

out of city hall as

the

East,

an

difficulties

kinds,

area

of

would be willing to

own as

personal investments.

of

most

lous

countries:

India

let

municipality,

tional

organization

element

of

an

has

the

that

interna¬

been

an

in

its

operations. Unlike nationally-ad¬
ministered

aid

loans

Bank
cerned

with

programs,

have

not

political

short-term

receipts, and no¬

strength

great

or




is

that the Bank

tors,

went into gross

note

me

with

no

,

,

Finally,
fact

Pak¬

and

istan.

planning for future

was

has

lending

our

done in the two most popu¬

needs, revenue from sales simply

there

saturated with
different

many

been

World

been

commercial

with military
Continued

con¬

objectives,
fac¬

consideraon

page

63

■

,

responsibility
>

the Public Bonds it offers and handles only those which the executives of the

laysia), the Philippines and Thai¬
In South Asia and the Mid¬

no

In these cases,

business

power

monly

for example,

been

electricity

proper

the

are

we

class, and has specialized

buys and sells Public Bonds only after thorough investigation of relevant economic, legal and

financial facts about them.

land.
dle

Toward Latin America

Policy

a

nations,

developed

at

nomic and financial advisers

successors, are:

1898.

development ico, Peru and Venezuela. In the
expenditures and pulling together Far East, we have concentrated
the development effort.
For in¬ almost all of our lending on Ja¬
stance, we are now supplying eco¬ pan, Malaya (now a part of Ma¬
of

outstaw

companies,

these

budgeting

for

thousands of issues

re¬

or

economy—

public authorities or private com¬
panies. We have helped govern¬
ments to improve their machin¬
ery

on

they, in turn, are helping to

and

to

output

welcome to share these services.

and ad¬

vice have helped to

organize

market inventories.'

Department in the United States devoted exclusively to

ts extensive

compa¬

money

our

or

the

whether they be

far,

;earch

to

working

institutions

improve

So

nies.

assistance

create

to

occasion

the

key

A

try to make a loan pro¬

we

industrial

for

While the Bank's loans have been

whenever

and

Wherever
can,

that

see

operation.

in actual

tained

to

possible results are ob¬

best

the

responsibility

technical

or

these

construction
watches

the

has

Chicago offer close markets arid prompt quota*

section of the United States. The Company, tradi-.

NEW YORK

/

The Commercial and Financial Chronicle

Municipal Securities Committee, Breakfast Meeting—George B. Wendt, First National Bank of Chicago,

Mr.

&

Mrs.

Monroe

V.

Poole,

Geo.

B.

Zahner

A

Gibbons A
Company,

Paul E. Uhl, United California Bank, Los Angeles;
Allen B. Beaumont, William R. Stoats & Co.,
San Francisco

Joseph

F.

Vandernoot, R.
Pressprich

A

Co..

York; Mr.
City, Mo.

New

Kansas

Wilbur
*

&

Mrs.

Victor

H.

Zahner,

J

R.

W.

.

.

Thursday, December 26, 1963

Chairman

Mr. & Mrs. Edwin F. Kezer, B. J. Van Ingen A Co.,-Inc., New York; Walter H. Stohl, Fidelity Union
Trust Company, Newark, N. J.; Mr. & Mrs. William T. Burke, Bacon, Stevenson A Co., New York

H. Frederking, Fridley A Frederking, Houston; Lockett Shelton, Republic National
Dallas; William W. Pevear, Irving Trust Company, New York; F. Bradford Simpson, Jr.,
Hallgarten A Co., New York

W. Pressprich & Co., New York; Mr. & Mrs. Edward M. Rowan,
Co., New York; William A. Devlin, Reynolds A Co., New York




'

.

Bank,

Richard

A. Schmelzle, Fusz-Schmelzle A Co., St.
Louis; Wilbur E. Johnson; Johnson A Johnson,
Pittsburgh

Herbert D. Hunter, Watling, Lerchen A Co., Detroit; Mr. & Mrs. Robert D. Thorson, Paine, Webber,'
Jackson A Curtis, New York; Walter B. Levering, Carlisle A Jacquelin, New York

Volume

Number 6328

198

.

.

The Commercial and Financial Chronicle

.

the future,

World Bank's Role

let

Borrower and Lender
61

tions.

able

We

the shots

have
we

as

strictly

been

economic

call

to

them, from

saw

a

financial

and

point of view.

We have been con¬

cerned

with

solely

the

assuring

best economic performance by

the

developing countries.

we

have

objective

no

economic
been

be

to

adherence

teria, in

tent not open

that

such

in

economic

cri¬

and to

to

ex¬

an

to national aid pro¬

Our

grams.

have

we

hard-headed

manner

a

but

serve

development,

able

our

Because

to

record

specialty
I

five

months

lent

$479

since

good.

are

We

the

fact

the

burden

ward

we

I

of

have

active future

an

in

that

the

think

ourselves,

pointed

have

.sure,

then,
more.

million

prospects for

our

in

and

is

debt

to

be

doubtful

rising to¬

countries,

risks.

time being at

the

for

these

In

least, the Bank will be limited in
its abiltiy to operate. These clients
will

have

to

turn

increasingly to

offer

to

able

capital

on

lenient terms, including

the

sources
more

Bank's

own

tional

Development

affiliate, the Interna¬

which, financially

rate from the Bank

not

Association,

is

quite

sepa¬

and,therefore

part of my story here today.

But

tomers turn
rive.

of the Bank's

some

as

important

Among

New Zealand.
loan in

last

ar¬

new

Spain and

are

We made

first

our

Spain two months ago and
in

loan

first

our

cus¬

eleswhere, others ar¬

rivals, for instance,

month; and
active

quite

countries

these

for the next several years

Another

at least.

arrival, is Portugal,

new

recently lent money for

where

we

power

development.

In

do

to

to

be

more

the

will

we

busi¬

normal

our

and in some,

ness

ly

other places,

many

continue

normal.

proposal to finance the

a

of

development
electric
In

site

the

on

hydro¬

large

a

Niger River.

Venezuela, to cite another ex¬

ample,
million

for

for

and

highway development

hydro-electric

Guri

the

project; but our operations

power

in

have already lent $130

we

that

developing

country

beginning and, politics

just

become

should

mitting,

are

per¬

more

we

will

more

wjaich

developed countries
our

the

in

financing

as

a

private

with

of

have

loans

and

to

made $100 million
Norway,

and

expect this kind

activity to continue.

:

Broaden Scope

Would

While

of Bank's

of

—and

most of
—I

our

ahead

Bank's

and basic

business in the

doubtless
our

have

make

trary,
our

we

will

business

Executive

past

constitute

in the future

recommended

to

Directors




loans

On the

on

been

In

war.

will continue to relate

interest charges to the cost of

economic

of

the

"Flashy

of

span

these

increasing

in the

years,

there

impatience,

United States and in

It

has
both
some

are

is

perfectly

many

developed
•

money

to us—not

only to

assure

countries

of

Headlines"

Are

Misleading

Europe, with the re¬

'

true

that

there

things amiss in the less
world.

That

Continued

on

world

is

page

64

loans
and

activities

as

pro¬

credit

extend

well

field,,

and

have

we

concerned

more

of

financing

and

projects,

technical

helping,

assistance

as

finance, to develop indusr

as

tries of kinds

in the develop¬

new

In addition,

ing countries.

we

exploring the desirability of longterm

financing,

.

of

the

for

cases,

in

equipment,

of

foreign

to

has

abroad

and

with

which

equipment

from

prevented full use of

industrial

existing

pieces

shortage

the

exchange

such

buy

of

components

where

parts,

spare

appropriate

import

capacity.

It

makes little or no sense to finance

spectacular

capacity

new

facilities

production

when

in

already

place are only partially in opera¬
tion because of the lack of main¬
tenance

parts.

I have also recommended to the

Executive

Bank's

the

enter

we

that

Directors

of

field

education,

by lending for technical and vo¬
cational

education

training

and

projects and for general

second¬

school facilities.

ary

Favors Modification of Terms

We

also

are

considering

the

modification, in suitable cases, of
the terms of our lending.

ticular instances, it may

In par¬

be desir¬

able to lengthen the grace

the

allow

to

nanced

to

be

earning

power or

whose
take

Complete the picture with our facilities for Buying, Selling, Trad¬

build

ing, and Quoting Tax Exempt Bonds and United States Treasury

may

It

up.

and Agency

also sometimes be appropri¬
lend

to

I

longer

capacity

to

years

a

full

borrower

a

repayment

some

may

ate

to give

to

fi¬

into

brought

spell

breathing^

period,

being

project

than

somewhat

at

maximum,

our

to

up

have already said, and

repeat,

these

that

supplement,

would

lending

let

we serve

in

already

other

of
not

Let

add

me

Building with Chicago and the nation for 100 years

thing: in new fields, as

old

the

does.

ones,

the Bank

is not

going to try to supply all the cap¬
ital needed — that would be far

What

we

are

going to do,

in

the

that

have

done

stances,

is to

develop

of

organization

will

*

The First National Bank

encourage

as

other

we

in¬

techniques

vE^

that
follow

and finance
others

the way. We want

to

to finance pilot

No

"Soft Terms"

set

out

some

^

■

of

jJ
the

things which the Bank may do in

of Chicago
Chicago, Illinois 60690

projects, not to try to do it all.

Having

individuals, trust accounts, institutions, banks, corpora¬

tions, public officials and dealers.

me

kinds

new

Issues. By advising on new issues, underwriting and

distributing public bonds, assisting in the investment of funds;

longer

of 25 years.

already

*

public util¬
ity projects that have constituted
most

to

covers

all the years since the end of the

con¬

beyond our resources in any case.

intend to press

we

of

\

Assistance

with the big

intend

problems

with

development

do

we

beyond

such

becoming

the

Bank

Japan

would

I

not

ing

econom¬

ically unstable.

more

improvement

that

through

one

we

ex¬

sieves and

strengthening organi¬

and

industrial

world. In recent weeks, for exam¬

ple,

do

so-called soft terms.

borrowings
supplant, the kinds of lending the
markets of the

their

to

supplement

a

irrigation

the industrial

In

lending to some

need

the

of

be

feel it reasonable to

pect can ultimately be repaid. We

The Bank's experience in deal¬

are

politically and

sponges,

money

be

may

that

assistance

in mind

now,

time

we

country

are

drain, that the less de¬

now.

control to

term

that from

think

than

in

by the critics

programs

help agriculture, extend¬

zations

time to

I

any

money

the

than once,

technical help to the farmer.

important in years to come. More¬
over,

to

large-scale

grams

In

Nigeria, for instance, we are look¬

ing at

more

these

of de¬

programs

More

veloped countries
n

We will not

lend

aid.

been told

have

down

markets of the world.

been well studied and will be ef¬

ficiently carried out.

we

clients to the established that

our

money

velopment

development

proposed

agricultural

is like¬

pace

than

have

ultimate

transfer of the business of financ¬

think ing

priority,

strength/ but sults of bilateral
the

helping to finance comprehensive

expect to be

we

in

Zealand

New

to

flood

countries,

point where they will be¬

a

come

high

facilitate

to

complex sort than the

up

our

for

repeatedly to

some

it

begun,

enterprises of

have

more

last

ended

year

process

of

are

we

financial

own

advanced stages and

more

varied and

and

countries

in

follow

to

finance

to

*

million,

$449

into its

in

inex¬

are

development

well

been

advisable

in

projects

which

Even

the

where

help

administration

in

technology.
has

of

countries

perienced

to

they

kind, unless

our

also

tation projects that have been our

June 30, the Bank made loans to¬

taling

formulation

the

technical

more

assistance

and

those

ing

fiscal

the

ought to be prepared,

believe, to give

advice

few

a

large power plants and transpor¬

Current Lending Operations
In

I

other

on

pays

off in development results.
*

We

fronts.

efforts

our

proof

stands

hard-headedness

*

widen

we

mention

will not finance projects,

We

do.

of whatever

Continued from page

me

things the Bank certainly will not

as

(312) FRanklin 2-6800

Member Federal

Deposit Insurance

Corporation

Teletype; 312-222-9864

64

Mr.

&

Mrs.

The Commercial and Financial Chronicle

Hunter

B.

Grant,

Coffin

&

C. Williams, Merrill, Turben & Co., Cleveland; Mr. & Mrs. William S. Gray, Merrill,
& Co., Cleveland; J. R. Staples, Fulton, Reid & Co., Cleveland r

Lewis

Burr,

York

New

But

World Bank's Role

as

gest

in the

course

of

lution

and

is

a

definition

by

nor

easy.

dangerous

running

sometimes, impatience have hob¬

dramatic

In

economic

smooth

neither

process

countries,

many

political .currents

strong,

bled the pace of progress. At best,

revo¬

change

revolutionary

are

sometimes

with

disastrous economic consequences.

And,

even

here this not the

inexperience,

case,

incompetence

and,

is

ance

the

the

errors,

sug¬

irrita¬

tries

as

double

development

and

is

a

development

slow

assist¬

frustrating and irritat¬

a

are

only

and

that

part of the picture

one

is

it

peculiarly

employment
some

diplomacy

many

things

in

and,

life,

amount of luck.

our

Latin American

But let's go a

despite States.
over¬

10

of the

bit behind these participating

Or

Using the perspective of

the whole

with

but

19

countries

in the Alliance for

postwar period—a

pe¬

take

let's

look

a

Indian sub-continent

the

at

the other

on

significant and,

what

I

Within

mean.

the

from 1948 to 1961, the gross

America's

tional

average

41/£%.

sample of

than 60 de¬

more

veloping countries

a

trial production.
ade

the

t

than

industrialized

ing

the

despite

same

the

—which

achieved

that

countries

explosion

1948-58,

American
creased

7V2%

reflects

instance,

seriousness

all

20

Latin ,American republics
the 34 countries of Africa.

plus

The problems

istan

of India and Pak¬

often

are

shrugged

off

as

well nigh hopeless because of the

grinding poverty of their peoples,

Latin the

terrible

pressure

of

popula¬

industry
in¬ tion upon available resources, and
output by a striking the magnitude of the investment
year.
And programs required for even a modest ad¬
heavy

its

per

During the dec¬

for

exceedingly underway envisage continued

an

difficult problem, the

STATE AND MUNICIPAL SECURITIES

dur¬

Moreover,

years.

population

presents

by

an

almost

of

rate

na¬

at

rapid advance in indus¬

is

higher

gross

been

rate

high

70%. This over-all rate of growth

opportunity

in

has

annual

This

by about largely

rose

growth

product

tive

pansion at the

ex¬

In fact, we are much con¬

vance.

cerned

rapid rate.

same

>

that

economic

production

Per

capita rates of growth in in India, for the time being, is
Latin America, of course, have growing no faster than popula¬
aggerated—despite the population
been much lower than the over¬ tion, probably due in large part
explosion, the per capita growth all increase in GNP because of to unfavorable weather and a
of

U.S.GOVERNMENT SECURITIES

which

cannot

possibly be

ex¬

poor

FEDERAL AGENCY SECURITIES

in

the

rJ%e

to

UST

of

GNP

countries
was

NORTHER

1962, the growth in per capita

income in

see

domestic product of a representa¬

you

Picture

re¬

to

bankers,

as

velopment proceeding

show

serve

group

a

over-all
figures.
Let
me
take Progress exceeded the 2.5% goal
Latin America first, since the Al¬ set by the Alliance.
the picture whole and in perspec¬ liance for
Progress is so much in
India and Pakistan Making Peal
tive. So viewed, the record tells the news and is of such
particu¬
Economic Progress
'
a different story—a story of de¬ lar
importance to the
United

sponsibility,

years

to

A. McCandless, Vance, Sanders
Company, Inc., Boston

&

sure, riod
first
of
booming
export side of the world—an area com¬
in fact, his¬ prices for Latin America's prod-, prising two countries whose pop¬
ucts and then of
certain torically without parallel.
steadily deterio¬ ulation is considerably greater
One statistic alone will help to
rating terms of trade — Latin than the aggregate population of

as
a

John

Mrs.

in

The

that make the flashy headlines—

which requires the great obstacles, a story of
all advance, uneven, to be
of
great patience,

ing business,

We welcome the

&

Mr.

would nearly Brazil. But balanced against this
is the rather remarkable fact that,
single generation.

a

in

Turben

Thursday, December 26, 1963

.

tions and the setbacks—the things

Borrower and Lender
Continued from page 63

having said all that, I

that

.

.

the

developing the large expansion in population, harvest.
Yet 4he longer record
that
the 1948-61 period but the postwar average is still shows
despite
staggering

over

also encouraging; it amounted

somewhat

year.

more

than

On this basis, the

income

of

the

2%

per

developing

in the neighborhood of almost 2%
per

per

capita
coun¬

year.

At

the

moment,

gional figures show
record

of

economic

growth
crises

a

halt in this

because

in

re¬

of the

Argentina and

handicaps, India's
come

rose

between

1955

istani, after
most

of

per

capita

by some 1 % %
and

near

the

1962.

a

in¬

year

In Pak¬

stagnation during

1950s

due

largely to

BANK
50 S. LaSalle St.
New York

Representatives

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•

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aid /from

started

make

to

abroad,

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Pakistan's

Second

Plan is expected

5r%

a

the

Plan

rate

•

of

years

period, achieving

a

per

not

go

favorable

on

figures

for many

quoting sta¬

similar

more

or

available

are

nations in many parts of

pro¬

But the

year.

proclamation will only come true
bankers, the industrialists,

the

of

the

world,

universities

'

the

of

men

church

the

of

and

of

speaking,

generally

and,

moded

,

social

inadequate

despite

despite

structures,

growth,

population

unparalleled

savings

and

the

underdeveloped

end

whole

process

acquiring

and it will not

not

is

mo¬

tolerable by making it a by-prod¬

quickly or

come

an

of

uct

programs

created and im¬

convinced that plemented essentially with the
the prospects are good if we of view
of
furthering
the
diplo¬
the West stand firm in our re¬ matic, political or export objec¬
solve to gove effective financial tives of the industrialized coun¬
but I

easily,

and

am

help,

technical

means',

to

formance

economic

and

our

per¬

justify that help.

historian

Arnold

and

philosophical

the

from

Toynbee,

nacle provided by

pin¬

his studies and

the

had

thinking,

perspective to see-—and years ago

should
not

—

to

be
the

aid pro¬

the

other

I

political

our

therefore

in¬

substantially

greater—if the United States had
less

in

generous

extending

development assistance.

The

ministrator,

for

Agency

is

significantly

ance

promise to yield
mental
for

when

dollar

AID

has

I

come,

before

The

spent.

am

should

we

ever

convinced,

concentrate

on

be¬

are

which these

on

particularly
the

'

aid.

terms

be in the background of

ways

in

activities

any

well

try, should themselves

run

be

comparison

in

United

of

de¬

•

,

,

What

the

present

af¬

of

fairs

demands, it seems to me, is
that we devote our best efforts to

developing countries

helping the

increase the

to maintain and

that

mentum

has

achieved

fully

been

to

I do not mean

disparage the development ef¬
of

forts

nations.

these
and

aid

The

other

industrialized

other

the

nations

are

of

growing importance;

they

have

reached

now

of

programs

large

since

the

war.

belies

that the

the

United
/

think that it would be the part of

for

the

sistance

governments

the

to

underdeveloped

gains already made
lose

and

to build vigorously on the

world

those

gains

their efforts

or

—

by

.

This is surely an unreal

distinction.

It is in the nature of

bank that it should be inter¬

any

ested in promoting

the production

and trade of its clients. The World

has

unlimited

most

had this

always

of

in

I

'

rather than
slackening

yielding

deployed,

experience

nance,

make

can

tion

to

a

and

significant contribu¬

ing

in

underdeveloped

lation of the world.

ing

to

play

structive
is

It

this

our

role

role
firm
in

a

•

DEALERS

in

these

CORPORATE AND MUNICIPAL
Private Financing and

fidence and

231

SOUTH LA SALLE STREET

•

"Unreal

„

size

a

bearing

.

This is the

Distinction"

course

♦An address

that I intend

52nd
ment

we

shall follow in the Bank. Peo¬

Annual
Bankers

s

,

j|g§ | |

i

the

(Z^SSffSli
"MKmm

BROKERS

SECURITIES

CHICAGO 4

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members
new

york

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stock

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midwest

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bond people are always looking for new
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bond field.

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UNDERWRITERS AND

DISTRIBUTORS

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ILLINOIS

CONTINENTAL
135

South

LaSalle Street




Manhattan

Plaza

Chicago 3
Telephone STate

One Chase

2-31OO

New York

City 5

Telephone BO 9-2070

AND

TRUST

NATIONAL

BANK

COMPANY OF CHICAGO

231 South LaSalle

Street, Chicago 60690

Representative Office: 71 Broadway, New York 10006
Member Federal Deposit Insurance

Corporation

of

Association

the
of

Hollywood, Florida, Dec. 5, 1963.

§g 1

wMmMtmrnrnm
.

be only the

%%zvG&/r22Gtttr<f?GCur*i/i'Q&

to

play

that

will

by Mr. Woods before the
Convention

•

coun¬

jdacottTffftip/yte c?Go.

con¬

support.

Sales Negotiated

FINANCIAL 6-3400

and

countries.

intention
manner

BOSTON

•

its continu¬

active

an

CORRESPONDENT

UNDERWRITERS

countries

The future of

the Bank depends on

MIDWEST STOCK EXCHANGE

ESTABROOK & CO., NEW YORK,

fi¬

the continue to command your con¬

to

counsels of defeatism.

pleasant by-products.

•

of

influence

raising standards of liv¬

MEMBERS

EXCHANGE

Wisely

resources

our

Established 1933

NEW YORK STOCK

its

al¬

terms of geog¬

INCORPORATED

'

as

area,

operations.

its

The Illinois Company
'

and

indeed,

popular notion

States is

bank

a

I which contain most of the popu¬

'

which

as

development in¬

mo¬

pain¬

so

organizations concerned with as¬

U. S. aid program,

a

,

state

of

saying what I have about the

stitution.

raphy,

widom

In

Bank
as

there

running

States

ing made in aid programs instead

grousing at their inadequacies.

World

running it

if

as

between

primary objective in the

something to

which will al¬

The

Ger¬

the

talk

choice

a

Bank

leaves

with

that

France,

sometimes

still

sired,

ways

Britain,

assist¬

ple
were

other countries provide assistance

the

better develop¬

a

than

return

each

time

in

national

gross

although the terms

ad¬

Devel¬

its

development

excluding the cost of military aid,

new

International

of

United
smaller

a

and the Netherlands—again

many

Bell,

David

Mr.

en¬

front

in fact, the

to

than

ance

considerations

have mentioned,

grams.

philosopher,

objective

one—of

peripheral

Toynbee's Perspective
The

countries

central

the

assistance

Economic

tries.

Whose developing

nations

those

efforts

own

within

product

In

burden.

contributed

percentage

substan¬

approached as an cheering the gains which

assured

encouraging

an

be

objective. Economic aid is not

infirmity which we must learn
to live with and which we render

of development is

Success

mentum.

The solution of this prob¬
should

lem

forward and the

investment,

considera¬

given to other serious prob¬

lems.

world is moving

the

with

world

oped
tion

develop¬

the opment is improving its perform¬

preters, and treat the problem of
the economics of the less devel¬

als, despite inflation, despite out¬

of

be

today

politicians, couraging news on this
take
a
little that, under its energetic

the

from

advice

over

the

diplomats,

enough: despite political upheav¬

is

point

years,

has

over-all progress

been

assistance

States

security

passing

highly unfair share of the de¬

velopment
recent

program

being confirmed and reconfirmed
with 'every

Decade of

the

a

of
the

aid

S.

less—and

be

trained news observers and inter¬

The

world.

the

shortcomings

the important fact is that

U.

years,

tially

to

simple

the

the

the

velopment. Toynbee's judgment is

the

although

officially

been

Whatever

would

to that of India.

shall

the

Lauds AID's Accomplishments

ment

if

I

20th

years,

65

de¬

capita rate of growth comparable

tistics,

recent

In

have

1960s

claimed

to average about

the five

year over

economic problem of the

Century.

during

Development

predict—that assistance to de¬

the

has

significant prog¬

The

ress.

The Commercial and Financial Chronicle

.

veloping countries would become

tion took hold and, with extensive
financial

.

.

to

a

administra¬

rigorous

more

6328

incompetence,

governmental
new,

Number

198

Invest¬

America,

The Commercial and Financial Chronicle

66

Mr.

&

Mrs.

Company

Mr.

A.

&

Mrs.

Fred

of

D.

Stone,

Western

S.

Malcolm

New

Jr.,

Marine

York,

Trust

'

Mr. & Mrs. P. Fred Fox, P. F. Fox A Co.,

Buffalo

Prosser, Seattle-First National Bank, Seattle;
Foster A Marshall, Seattle

New

Mr.

&

&

Mrs.

John

A.

Mrs. Sidney J. Sanders,




Mrs.

Walter

E.

C.
'

M.

Fritz,

City

&

Mrs.

Van

Jack

J.

Alger

.

.

Thursday, December 26, 1963

Mr. & Mrs. Francis P. Magoun, National Shawmut

Brothers,

Bank, Boston

York

Company),

Mr.

Lehman

Morse,

Mrs. Elvin K. Popper, I. M. Simon A

Mr. &

K

,

Falvey, Investment Bankers Association, Washington, D. C.;
Corporation, Indianapolis; Mrs. Laura B. Crowley
(Investment Bankers Association), Washington, D. C.

Securities

&

New

Krohn, New York, (Guest); Laurence C. Keating, Goodbody A Co., New York; Michael J. Pizzuto,
Merrill Lynch, Pierce, Fenner A Smith Incorporated, New York;
Frank J. Lockwood,
A. G. Becker A Co., Incorporated, New York

Mr.

Mr.

York

.

Dallas;

Jacobs,

John

L.

Co., St. Louis;

Ahbe,

Crocker-Citizens

Mrs. James F. Jacques (First Southwest

Distributors

National

Bank,

Group,

San

Inc.,

New

York

Francisco; Lorrin C.
J. Gardiner, Jr.,

Mawdsley,

Alstyne, Noel A Co., New York; Mr. & Mrs. John
Irving Lundborg A Co., San Francisco

Runnion, Wachovia Bank A Trust Co., Winston-Salem, N. C.; John P. Krause, Reinholdt
Gardner, Sti• Louis; Robert C. Hawley, Harris Trust A Savings Bank, Chicago;
/

J.

B.

Shumate,

First

National Bank,

Miami

A

Volume

Number

198

6328

.

.

67

The Commercial and Financial Chronicle

.

•vv

Lee

Carroll, Lee W. Carroll & Co., Newark; Paul L. Sipp,
Stern, Lauer & Co., New York; William A. Devlin,
J Reynolds & Co., New York

John W. Lapsley, Morgan Guaranty Trust Company, New York;
Brownlee O. Currey, Jr., Equitable Securities Corporation, New York;
G. Bruce Leib, Baker, Weeks & Co., New York

Jr.,

W.

E. Graham, First National Bank, Ft. Worth; Hugh Bass,
Metropolitan Dallas Corporation, Dallas; Glenn B. Coats,
First National Bank, Ft. Worth

T.

.

hearings

Report of IBA Municipal

which

mittee
Act

mittee

consideration

for

page

21

.

again

in

other

of the Act was to

for

Act

,

Public Works Acceleration

communities to become

The Public
Act

to

President

celerate in
eral

to

be

allocated

initiate

eligible

and

by
ac¬

(a) Fed¬

areas

public works projects which

have
gress

ects

1962)
appropriation of

the

million

$900

Acceleration

September,

(approved

authorized

the

Works

been

and
of

authorized

by

and

local

ducive

unemployed

govern¬

ments for which Federal financial

industrial

to

and better places

for

arid

local

and

an

funds

mittee

under the

Act

projects of

governments

cost

the

of

cases up

50%

to

companied

project

(or

in

the

by

October

In

Committee

on

the

is

economy

against

pledge

a

ac¬

stimulate the

economy.

States

(ii)

financing
at

new

to 75% of the cost of construc¬

tion

of

mental

facilities

research

for

retardation

(ii)

$32.5

years

of

million
the

over

for

75%

to

up

construction

of

begin¬
ending

years

June

to two-thirds

30, 1965 for

up

of the cost of construction of pub¬

other non-profit facilities

and

for

fiscal

four

v

four fiscal years

over

the

Federal

in

next

other

and

ning with the fiscal

lic

grants

(iv)
lion

mentally retarded.
An aggregate of $150 mil¬
three

the

over

fiscal

cost

of the

Continued

university af¬

on

years

page

levels.

record

A. G. Becker & Co.

bil¬

provide

programs

cap¬

Federal

Incorporated

local

and

government

Established 1893

governments.

(iv) Funds under the Act have
non-essential

at the expense of the

poses

tax¬

No action has been taken by

Committee

Incorporated

the

Commercial

•

Municipals

Paper

the bills to author¬

on

additional

ize

Brokers

Distributors

Corporate Stocks and Bonds

payers.

McDougal and Condon

•

Underwriters

pur¬

for

used

been

Exclusive

the

under

funds

Distributor of Federal

National

(Fannie Mae)

Mortgage Association

Act.

Short-Term Discount Notes

(f) Health Professions Educational
Assistance 'Act

Municipal Bonds

This

Institutional Investments

three fiscal years an

(i)

cilities

Chicago 4, 111.

of

And Other

phy¬

of

Members

professional

and

San Francisco

New York

Chicago

teaching fa¬

training

nurses

Trading Department

aggregate of:

new

the

for

sicians,

Unlisted

period of

a

Million for grants for

$105

construction

208 S. La Salle St.

24,

Sept.

approved

Act,

authorizes over

1963,

and

York

New

Other

Cities
Stock

Exchange

Principal Stock Exchanges

public health personnel.
(ii)

for grants for

million

$35

construction

of

teaching fa¬

new

cilities for the training of

the
of

replacement
training

tists,

Ellis

&

Simmons

physicians,

of

struction

SECURITIES

of

for

or

exceed

not

may

except

that

project for

a

are

of

where

school

1963

DISTRIBUTORS

-

-

DEALERS

INDUSTRIAL, PUBLIC UTILITY, RAILROAD

particular

LISTED and UNLISTED BONDS & STOCKS

the

in

(1)

school

a new

facilities for

new

ing

—

MUNICIPAL TAX and REVENUE BONDS

of the necessary cost of con¬

case

MUNICIPAL

UNDERWRITERS

personnel.

Such* grants

AND

1890

den¬

professional public

nurses or

health

50%
UNDERWRITERS AND DISTRIBUTORS OF CORPORATE

Seventy-Three Years of Investment Banking

rehabilitation

or

existing teaching facilities for

the

Blunt

dentists.

$35 million for grants for

(iii)

an

exist¬

Stifel, Nicolaus & Company

facilities

such

importance

expansion

of

INCORPORATED

in

MEMBERS

Members

providing
training

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grant
American

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a

school

WEST MONROE STREET

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be




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with

project
of

may

for

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(g)
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and

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a

the Fed¬

of

of

LOUIS

Community

105 W. ADAMS

ST.

CHICAGO 60603

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Tel. STate 2-5770

8001

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MIDWEST STOCK

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STOCK

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314

(2)

The Act also

program

schools
or

and

EXCHANGE

AMERICAN

be for 75% of the

cost of construction.

loans

two-thirds

public health

authorizes

Telephone Financial 6-9000

for

construction

of

eral grant

111

NEW

capacity the Federal

may

the

Midwest Stock Exchange

major

a

and

to

Wire

the

(iii) An aggregate Of $67.5 mil¬
lion

on

related

and

expenditure programs of the

ital

for

grants

physicians

of

specialized personnel.

Existing Federal financial

(iii)

House lions of dollars to accelerate

Public Works held

training

for

for clinical

or

municipalities
public facili¬

and

are

some

next

the

over

for

years

facilities

retarded

v

to 75% of the cost of the assistance

project^.

fol¬

the

on

fiscal

four
up

million

$24

aspects of human development.

Federal spending to

are

of the

The IBA

authorization of

funds

(i)

The proposed tax reduction'

(i)

to, stimulate

31, 1963

aggregate of:

an

clinical

filiated

mentally

This Act approved Oct.
authorizes

appro¬

lowing grounds:

ties

limited

generally

for

statement to the Com¬

a

opposing

additional

the

the

million

1963

of

of $1.8 billion)

authorized

submitted

Act

Construction

Centers

Health

sev¬

amend

priation under the Act.

con¬

more

development

local public works

states

help

to

in which to live

Grants

work.

and

Con¬

(b) public works proj¬

state

the

work

useful

immediate

provide
(e)

The pri¬

provisions of law.

mary^ purpose

the House.

under

authorized

is

assistance

and

$900

by

aggregate

(to

from

would

increase

to

the

Continued

7351

H. R.

on

eral similar bills before the Com¬

Between St. Louis, Chicago, Louisville

and Moline Offices "

Hayden, Stone & Co. and Singer, Bean & Mackie, Inc., New York

City

68

68

Richard

The Commercial and Financial Chronicle

J.Cook, Ball, Burge
Kraus, Cleveland; Norman E. Budren,
Hayden, Miller & Co., Cleveland; H. Leonard Flynn,
McDonald

&

Co.,

Cleveland

Robert

M. Johnson, Dawson, Nagel, Sherman & Howard, Denver;*
Henry J. Crawford, Squire, Sanders & Dempsey, Cleveland; Charles
A. Richards, Field, Richards & Co., Cincinnati

r

Piper, Jaffray & Hopwood

The

Minneapolis, Minn.

Trust

The Chase Manhattan

Continued from page 67

beginning
ending

-

with

June

two-thirds

of

the

profit

community

up

of

cost

struction of public and

J. A.

year

for

1965

other

con¬

St.

lion

over

for

the

next

training of

three

San

Merrill

Co., Inc.

San

First National

Francisco, Calif.

J.

Van

Bankers

New York, N. Y.

New
E.

S. David Arnspiger

William

Darmstatter

Stifel, Nicolaus

&

New

Co.

York, N. Y.

Blyth & Co., Inc.
New

R. H. Moulton &
Los

Dallas, Texas

Rowles, Winston,& Co.

Incorporated

Alex. Brown & Sons

Houston, Texas

St. Louis,

Newell

Baltimore, Md.

Mo.

in

Louis

Louis, Mo.

;

V

\

Monroe V. Poole

New

Gibbons & Company,

York, N. Y.

Marsom

York, N. Y.

B.

Pratt

Estabrook & Co.

Boston,

S. Lee
The Valley National Bank

WESTERN POWER & GAS COMPANY

City Bank

Inc.

Incorporated

E.

Pfeffer

York, N. Y.

Geo. B.

Antonio, Texas

W. H. Morton & Co.,

New

Pendergrast

Atlanta, Ga.

New

Robert R. Krumm

WE GROW AGAIN!

York, N. Y.

The First National

Rauscher, Pierce & Co., Inc.

HERE

New

Delmont K.

Arnold J. Kocurek

San

C. Patterson

Courts & Co.

The First National Bank

St.

Donald

Thomas J.

S. Knight

St.

of

Mass.

Thomas L. Ray

Arizona

Mercantile Trust

Phoenix, Ariz.

St.

Company

Louis, Mo.

AND

TELEPHONE SUBSIDIARIES

COMPLETE

Consolidated;
Consolidated

earnings balance
Common shares
Fiscal year
ended Sept. 30

outstanding at
Sept. 30 (2)

for

common

shares

earnings
share

of Western Power
& Gas

Company

1945

1,403,443

$

1950

2,084,242

$1,944,344

381,200

INVESTMENT

per

C

(2)

(3)

FACILITIES -

28c

'

96c

1955

2,263,849

$2,583,301

2,575,141

$3,853,154

throughout

$1.15

1960

$1.51

1961

2,733,109

$4,021,450

$1.52

1962

2,783,817

$5,020,863

2,998,316

$5,486,126

Wisconsin!

$1.82

1963

$1.85

.

Teletype: 414-273-4333
(1)

Includes data of Southern Colorado Power Company for all periods prior to May, 1961,
date of merger into Company, -v

(2)

225

East

Mason

Street

Restated to reflect 6 for 5 stock split effective April, 1961.

(3)

On average-shares basis.




,

Company

Arthur E. Kirtley

Chicago, 111.

Company,

Company

Angeles, Calif.

Chemical Bank New York Trust

The First Boston Corporation

S. Garland, Jr.

York, N. Y.

Donald W. Moultoh

Detroit, Mich.

York, N. Y.

Charles

York, N. Y.

William F. Morgan

Dallas Union Securities Co., Inc.

Trust Company

/

Kuhn, Loeb & Co,

B. Franklin Houston

Washington, D. C.

Chicago, 111.

Sachs &

Company

City, Mo.

David T. Miralia

Kenower, MacArthur & Co.

W. Neal Fulkerson, Jr.

Ingen & Co., Inc.

Commerce Trust

T. Norris Hitchman

.

Incorporated

B.

Bank

New

Incorporated

Folger, Nolan, Fleming & Co.

Raymond V. Condon
George B. Wendt, Chairman

Houston, Texas
Harry F. May field

York, N. Y.

Goldman,

Co.

Incorporated

Co.

Louis A. Hauptfleisch

Columbus, Ohio

COMMITTEE

&

Lloyd B. Hatcher

New

Arthur S. Friend

Cady

Becker

Chicago, 111.

Lynch, Pierce, Fenner

Smith

&

Underwood, Neuhaus &

G. Hassman

G.

Boston, Mass.
Thomas W. Masterson

Kansas

Cady & Company, Inc.
MUNICIPAL SECURITIES

Townsend, Dabney & Tyson

Hill, Incorporated

White, Weld & Co.

Harvey J. Franklin

Chicago, 111.
Charles E.

Joseph F. Lockett

Okla.

Incorporated

Philadelphia, Pa.

Francisco, Calif.

•Tohn Nuveen &

The

A.

Incorporated

Robert R. Brinker

mentally retarded and other han¬

Respectfully submitted,

Company

Stroud & Company,

Louis, Mo.

dicapped children.

*

&

Chicago, 111.

William R. Staats & Co.

fiscal

teachers of

Orlando, Fla.

City,

Harkness &

Russell M. Ergood, Jr.

Allen B. Beaumont

(v) An aggregate of $45.5 mil¬
years

Collins

Julien

Leedy, Wheeler & Alleman, Inc.

Company,

Robert B. Harkness

Elmer

Hogle & Co.

A. G. Edwards & Sons

health

mental

centers.

Bank

York, N. Y.

Floyd H. Beatty

non¬

Loomis C. Leedy

Liberty National Bank and

Milton S. Emrich

Denver, Colo.

to

Thursday, December 26, 1963

Boston, Mass.

Frederick F. Barker

fiscal

the

30,

.

Avery Rockefeller, Jr., Dominick & Dominick, New York; Amyas
Ames, Kidder, Peabody & Co., New York; Marsom B. Pratt,
Estabrook & Co., Boston

Oklahoma

John W. de Milhau

New

.

George H. C. Green

Robert G. Davis

Report of IBA Municipal

-.

Telephones:
Milwaukee: BRoadway 6-8040

Milwaukee 2, Wisconsin
MEMBERS: NEW YORK STOCK EXCHANGE

•

Chicago: STate 2-0933
OTHER PRINCIPAL EXCHANGES

Volume

Charles

Number 6328

198

Richards

A.

.

Cincinnati, Ohio
Weeks

eral

Siefert

six

following

hew program

a

made

and

banks

by

of Fed¬

commercial

for

insurance

loans

other

Stern Brothers & Co.

institutions to college students for

Kansas

educational

City, Mo/

J. William Sorensen

Boettcher

and

covered

Denver, Colo.
Fred D.

The

exceed

Stone, Jr.

Marine

loans
by such insurance not to
amount

principal

Company

Trust

Company of

of

1964, $50
$75 million

and

1965

for

?

Inc.

/ /

Philip W. K. Sweet, Jr.
The Northern Trust

students and such sums

Congress

as

fiscal years.

Gene C. Turner

1(D) Graduate Fellowships. In¬

Blyth & Co., Inc.

the

crease

Portland, Ore.

ities.

Kidder, Peabody & Co.

authorize

would

York, N. Y.

to 50 years) requiring that (1)

up

Company

at least

% of the cost of the con¬

.

struction

Pittsburgh, Pa.

and

sources

unable

York, N. Y.

is

equally

Philadelphia National Bank

'/•

/•

;

such loans would be
of 1% above the

on

interest

annual

average

H. Zahner

all interest bearing

Zahner and Company

of the

City, Mo.

public debt

in

the

as

of

Would authorize grants

for

cilities,

junior

provisions

of

each

liberalize

Academic

1964 and such

Congress may determine

as

years

loan

the

colleges

two

next

to

grants

academic fa¬
the Fed¬

for

that

requiring

eral funds be matched by

fense Education Act of 1958 (pres¬

local

ently authorizing $90 million for

fiscal

community

of Section 201 of the National De¬

such

state or

to institu¬

education to

higher

ac¬

2(C)

Grants for College Level

1962, 1963 and 1964) to Technical Education Programs.
million for 1964 Would authorize grants to public
as

Congress

specified

(with

purposes

states under

to

$200 million for 1967

pursuant

for Federal grants to states to as¬

plan, for

their

local

to

any or

the

purposes:

(a)
tional

To

pay

agency

increase

in

to
a

a

and

may

private non-profit institutions

•

DISTRIBUTORS

•

DEALERS

effective

distribution

an

salaries

of

Continued

on

an

certified
page

70

con¬

amount not less than

will

during 1963, and that it
for all

expend

library pur¬

poses

tional

amount

not

least

50%

the

and that at

sUch

of

will be for books,

than

less

amount of such grant

expenditure

periodicals and

othen related materials.

Would
lion

of

sums

mi-

$25

1964 and such

Congress may determine

as

the

for

authorize

also

grants for
next

fiscal

two

for

years

facilities, provided that
grant

may

Federal

a

not exceed 50% of the

cost of construction of the

project.

2(E) Graduate Schools.

Would

Title

amend

IV

National

the

of

Education Act to expand

Defense

uate

and

Foundation

Science

National

science

undergraduate

facilities, authorizing $40 million
for

1964

as

sums

Con¬

determine for the next

fiscal

six

such

and

gress may

for grants to in¬

years

of

for

learning

higher

the establishment or improvement
of

including

schools,

graduate

projects for construction or equip¬
ment

and related

institutional

of

facilities, such Federal grant not
to

of the cost of the

exceed 50%

project.

Foreign Language Train¬
Research. Would amend

2(F)
ing and
the

to

Education

Defense

National

authorize

grants

of

$13

million for 1964 and such sums as
may

determine for the

next two years

for modern foreign

Congress

language training and research.

Institutes
for

ing

million

$37.5

such

may

Advanced

for

Would

Teachers.

amounts

for

Upstate
York

Mile

Point,

on

the southern shore of Lake Ontario, about

Congress

as

for grants or construc¬

Preparations

are

already under

way

at the 1,500-acre site

universities and construction is scheduled to start in 1964. Completion of
for the operation by them of in¬
the 500,000 kw. nuclear plant is scheduled for 1968, to
stitutes for advanced study to im¬
meet the ever increasing demand for power.
prove the qualifications of teach¬
to

colleges

and

ers.

Teacher Preparation Pro¬

grams.

Would authorize $7.5 mil¬

lion for 1964 and such amounts

New

United States

1964 six miles east of Oswego, N. Y.

determine for the two follow¬
years

One of the largest atomic power plants in the

will be built by Niagara Mohawk Power Corporation at Nine

3(B)

in

Congress
two

may

following

colleges

new

designed to produce electricity at costs at least

as

determine for the
years

The
It is
a

plant will be of the

coal burning plant at the

proven

same

"water reactor" type.

site.

>' ■•/' >:

individuals to teach

George D.B.Bonbright & Co

and secondary

Members New York and American Stock

Exchanges

signed

to

schools to

strengthen

pay

part

projects de¬
such

pro¬

NIAGARA SIT

grams.

100 POWERS BLDG.

Midtown Plaza Office
ROCHESTER,

•

Open Tues. and Thurs.

LOcust 2-5200

On the Terrace

NEW

BINGHAMTON

•

•

Specialized

Training

Personnel.
•

OLEAN

Would

authorize

$7.5

million for 1964 and such amounts

evenings and Sat. 'til one
as

Congress

may

determine

H MOHAWK

for

Teachers and Related Educational

YORK

BATAVIA

3(C)

low

as

;

which Here is yet another indication of Niagara Mohawk's determi¬
of
in elementary nation to foster the growth of Upstate, N. Y.

of the cost of specific

Established 1903

as

for grants to

universities

and

have programs for preparation




educa¬

excep¬

(exclusive of

purposes

purposes

tion

•

local

percentage of

grant is requested for all li¬

brary

and

SYRACUSE

state

all of the follow¬

during the fiscal year for which

authorize

•

allotted to it,

approved

an

The institution must fur¬

3(A)

MAIN OFFICE

capita in¬

would be permitted

amounts

the

use

ing

educational

per

in each state/ A state educa¬

tional agency

agencies to make salary increases

formula based

a

population and

on

proof that it will expend

Study

UNDERWRITERS

the

$400 million for 1966

sist

and

Funds would be allotted among

Would

$500 million for 1965,.-

1964 and such

for the next two years

of

Education.

and

come

grants

determine

Act

funds.

$135

sums

Secondary

Elementary

$400 million for 1964^

may

Congress

as

stitutions

Community

for

$50 million in

sums

for

student

to

Colleges

Facilities.

of the Indi¬

1964, 1965 and

Grants

Junior

(References

adjusted to

./v#'/,;-

2(B)

cated Year)

and

part

%. For this pro¬

fiscal years

1(A) Student Loans for Higher
Education.
Would expand
and

authorize

a

computed at

such loan,

1966.

to Fiscal Years

Ended. June 30

each year,

on

aggregate of $1 billion for the

three

House—S. 580

Senate.
are

rate

there would be authorized

gram
an

of Proposed "Na¬
Education ImproveAct of 1963"—H.R.

to Years

authorize

$15 million for

school libraries.

authorize:

the following six years.

Would

or

Public

im¬

quality

educational

matching grant program for grad¬

cation for

-

Summary

tine

guidance

4(A)

determine

may

ceding the approval of the appli¬

APPENDIX A

in

such

and

the

the nearest % of 1

>3000

in

million

$20

1964

for

fields.

the end of the fiscal year next pre¬

Co.

ment

engineering, scien¬

Congress

braries.

obligations of

United States forming

the

Haven L. Zeboldi

Ohio

and

toward

The interest the construction of college library

not less than

Baltimore, Md.

tional

the terms

as

applicable to loans

under this program.

charged

Baker, Watts & Co.

the

terms and conditions

and conditions

G. Thomas Yeager in

Cleveland,

projects

opportunity.

the

2(D) College and University Li¬

"from other

favorable"

as

non-

the ap¬

obtain

of such loan

sources upon

Robert V. Wehrheim

(2)

to

plicant
amount

Weeden & Co.

from

financed

be

Federal

'

'

Prescott &

special

directed

(exclusive of construction)
non-profit private institutions of during the fiscal year for which
higher education (with maturities the grant is requested an addi¬

Mellon National Bank & Trust

:

for

loans

public and

facilities to

academic

William J. Wallace

Kansas

from

Education Facil¬

Higher

2(A)

Joseph Vostal

Victor

fellowships

and

following fiscal years. the amount it expended for such

of the two

Angeles, Calif.

Philadelphia, Pa.

undertake

persons

proving

1,500 to 12,000 for 1964 and each struction)

United California Bank

The

Defense

of

number

Act

Education

Paul E. Uhl

New

training

elementary

school facilities, and to

and

as

nish

needed

dren, teaching English, counseling

sums

for tions).

determine

may

each of the next two

Alan N. Weeden

for

employment of needy quire books for library purposes. necessary for the recruitment and
college students by institutions of A grant could not exceed 25% of retention of qualified career ele¬
and
secondary
school
higher education, authorizing $22.5 the amount expended by an in¬ mentary
million for
1964 for
such pay¬ stitution during 1963 for library classroom teachers, to construct
ments to

Company

Chicago, 111.

New

universities

urgently

colleges and secondary

part-time

Cunningham, Schmertz & Co.,

Pittsburgh, Pa.

with

contracts

semi-profes¬

at

grants

tions

promote

to

program

and

programs

such

the

new

to

the two following years for grants

preparing for teaching gifted chil¬

authorize

Would

sums

a

designed

other technological

or

1(C) Work-Study Programs for
College Students. Would establish

Buffalo, N. Y.

education,

employment

for

expan¬

the student for immediate

sional level in
tific

or

college-level program of

a

prepare

of

1966.

for

Joseph H. Sullivan

Los

new

69

establishment

the

technical

$25 million for

million

Western New York

total

the

purposes,

for

sion of

Insurance
Would

Loan

Education.

Higher

authorize

Philadelphia, Pa.
Russel E.

Student

1(B)
for

the

for

for college student loans.

years

W. Marshall Schmidt

&

The Commercial and Financial Chronicle

.

determine

Field, Richards & Co.

Hornblower

.

for

INVESTOR

0WNED-TAXPAYIN6

David

Government
Development Bank for Puerto
York; Mr. & Mrs. John B. Clayton III,
First National Bank, Dallas

Larson,
'

New

Donald

Rico,

W.

Wilson,
•'

Report of IBA Municipal

in

lion
sums

Vocational Education.
authorize

Would
Continued from page 69

teachers

classroom

having

10

harmful

or

pilot,
(b)

To

tional

to

pay

agency

increase

in

salaries

who

teachers

a

local

educa¬

have

of

classroom

least

at

Bachelor's

Degree

from

tution

of

higher

education

whose

salaries

below
aries

the

are

profit
to

and

in the state for such

agency

(f)

To

in

crease

salaries

the

if the average

local
such

in¬

an

of teachers

in

teachers

its

below

employ
the

local

of

an

below

substantially

ability

ability

finance

to

agency

the

and

of

the

is

301

in

the

funds

under

/

1964)

the

cost

not

of

more

of

an

years

facility which is urgently needed
relieve

school

,

or

serious

housing

for

science,

years

amend

prevent

double-

overcrowding,

conditions

or

which

Section

the

Edu¬

expire in 1964)

program

for

two

increasing from $15 million

per year

to $17.5 million

per year

1964 and each of the two fol¬

lowing

years

the

payments

for

guidance, counseling and testing.
4(D)
Would

of

mittee

on

Labor

of

Investment
of
Feb. 21, 1963. Re:

Federally Affected Areas.
authorize

a

America

a

sic Education.
million

$5

determines

following

initiate

year$

in

write

have

not

grade

are

English

the

or

or

adults who
the

eighth

achieved

an

equivalent level of education.

four-year ex¬

6(C)

elementary

of

facil¬

school

secondary

ities.

Public

Community

billion

$1.5

of

the

states

would

so

receive

of

regardless

that

some

their

all

%

funds

of the

needs.

actual

sales

municipal bonds
construction.

finance such

to
*

level of

high

issues of

new

The -amount ^<)f' new«4ssues

school

bonds

for

sold

Thus,

mentary and secondary schools in
1961 reached

gating

record high aggre¬

a

billion.

$2.5;

over

The

amount of such sales in 1962 was

1961 record,

close second to the

a

aggregating

$2.44 billion.

over

without

construction

room

for

and the

such

continuing financing
we

believe

program

of Fed¬

construction,

eral financial assistance for class¬

construction

room

is

unnecessary

would

million
million

(over

receive

28%)

over

of

the

$113

II

$400

Teachers' Salaries
In

proposed for the first .year.

Federal

cated to

a

be

state under the
used

to

allo¬

funds

proposal
teach¬

increase

teachers' salaries in that state

much

salaries

in

higher than teachers'

general,

salaries in

from 1950-51

as

were

up

ers.

The
been

striking gains which have
in classroom teachers'

made

salaries

is

evidenced

"Estimates

by

figures

School

of

Townsend, Dabney & Tyson
Established

1887

/

;

MAIN OFFICE: 111 Franklin Street

Members New

York and

American

Stock

Boston

Exchange

Stock

Exchanges

„

(Associate)

Telephone: 617-742-4500 Teletype: 617-451-3877
30 State

Street, Boston 5, Mass.

State Street Bank

'

•-/

AUGUSTA, ME.

^ AND TRUST COMPANY
BOSTON, MASSACHUSETTS

LEWISTON,

ME.

BANGOR, ME.

GREENFIELD, MASS.

PORTLAND, ME.

an

all work¬

Specialists in Bonds of

'

72%

compared with

increase of only 57% for

from

other states.

teachers'

average

1960-61

Municipal Bonds

•

the

proposed Federal financial assist¬

wealthy

five of the large

states

est

Municipalities within Massachusetts

of

public ele¬

and undesirable.

were




355,214

.___

state that the proposed

every

ers' salaries in wealthy states, re¬

General Market

72,214
71,987

continuing

of

gardless of the fact that the low¬

and Distributors of

69,400

additional classrooms will be

ance

ment would be divided among

could

Underwriters

69,543

In view of this record of class¬

in

grants from the Federal Govern¬

Similarly,
Li-

a

'

proposed

This

of

instruction

unable to read

completed
school

of

for

for grants to

of

programs

for adults who

and

and

cost

of

programs,

authorize

Congress

50%

or

construction

fiscal

grants for 1964 and such amounts
as

salaries

university exten¬

6(B) Adults B
Would

two

(A) $1.5 billion in Federal grants
over four years for teachers'

for grants for the develop¬
education

000

Association

Proposed (CNational "Educa¬
tion Improvement Act."

1964 and for

the two succeeding

the

by

Bankers

and

Ex¬

follows:

as

Com¬ completed
in
the
school
year
Education and 1962-63, and this is supported by

mitted to the House

Would author¬

ize $9.04 million for
each

equipment.

Uuiversity

General

tension Education.

years,

of the National Defense

extend

for

to

6(A)

B

Summary of Statement Sub¬

au¬

children.

was

% 72,070

Total

demonstration projects in the edu¬

4(C) Guidance, Counseling and

elementary and secondary school

shifts,

for research

years

years

It is estimated that close to 70,-

following

teachers

cation of handicapped

two

assistance

Testing. / Would

to

may

construction

for

years

classrooms

1960-61—_—:___

public libraries.
APPENDIX

determine for the two

sion

an

such

than 50%

construction

may

following

A'

(scheduled to

for

cation Act (due to

of

gress

ment of general

501

pay

pro¬

instruction

average

of

training

mathematics and foreign language

teachers.

(d) To

the

Language Instruction

providing

is

two

five school

Con¬

as

1957-6082

school

secondary

completed during each of the last

determine for the two

for 1964 and such amounts as Con¬

an

Science, Mathematics and

in

for

Congress

as

the

for

amounts

such

gress may

and

handicapped children. Would

educational
salaries

amounts

and

1964

$11.5

1964

for

allotment

receive

of the National Defense Edu¬

expire

grants

com¬

The number of new elementary

and

would

and

I

Classroom Construction

authorize $20 million in grants for

thorize $2 million of federal grants

cation Act Program

such

agencies in the state to finance
increase

cost of

Equipment. Would extend Section

average

increase

such

authorize

Would

of

for

years

public

of

libraries;

following

education.

state plan which will

./

4(B)

salary paid in the state for such
teachers

a

to

federal

Foreign

all

for

agency

it

gram.

salary paid by the

educational

substantially

of

of

part of the

pay

developing

percentage

a

million

operation

mil¬

determine

may

following

two

the

the

5(B) Education of Handicapped
Children.

Congress

munity

of

years

secondary education.

sal¬

to

grants

for

years

vocational

of

grams

determine

teach¬

local educational

a

non¬

or

designed

agencies,

improve educational quality or

entitle

> (c) To pay

to be

and

'

ers.

public

by

or

as

sums

states to extend and improve pro¬

educational

local

private

experi¬

or

or programs,

by

$73

of

grants

and such

1964

following

opportunity in public elementary

substantially
entrance

average

agencies

a

insti¬

an

projects

conducted

million in

Congress determines for the four

part of the cost of

pay

demonstration,

mental

percentage of an

a

otherwise seriously

or

to health.

(e) To

of service, ar;

years

unsafe

are

for

H. Stohl, Fidelity
Newark, N. J.

1964 and such

grants for

as

National Bank, Provi¬
Union Trust Company,

Industrial

Robinson,

R.

Library

braries. Would amend the

federally affected areas.

Thursday, December 26, 1963

Walter

Service Act to authorize $25

in

5(A)

R. I.;

to

assistance

elementary and secondary schools

Securities Committee

Arthur

Mrs.

&

dence,

...

of

1967 of the program

financial

Federal

Mr.

D.

Sargent, Saunders, Stiver & Co., Cleveland; John
Vance, Sanders & Co., Boston; John M. Grayell,
Saunders, Stiver & Co., Cleveland

tension to

more

Chronicle

The Commercial and Financial

70

LAWRENCE,

-'

FITCHBURG, MASS.

MASS.

KEENE, N.

H.

Sta-

Volume

198

Number 6328

.

.

The Commercial and Financial Chronicle

.

Thomas L. Anglin, Mackall & Coe, Washington,
William Hooper, Mead, Miller & Co.,

showing

mentary

teachers

classroom

school

secondary

and

the

in

four

states with the lowest averages in
1960-61

1962-63

in

increased

had

by the following amounts:

Arkansas

*

prevailing in competitive

private markets should,

the

where

average

is the lowest,

of teachers

ing made in salaries without the
proposed Federal financial assist¬

If borrowers

^

on

funds

government

government agencies."

vide

billion'in

loans

four

are

to

ways

(col¬

universities),

and

re¬

quiring that at least AA of the
financed
sources.

■

.

be

non-Federal

from

Loans would
this

construction

the

of

cost

G'I.

growth

of

(a)

responsibility

number

of

tion
has

cohceived

as
a

in

this

country

systems

Public

operate

on

are

least

the basis

the

12

years

of ele¬

mentary and high school in

which have vacancies and

substantial

commodate

can

ac¬

numbers

dele¬

State control of education is

a

fact

we

have

of

Education—-Mr.

Francis

every

aid

Federal
money

to

education,

utilized by the states according to

provide

for

junior

gone

of age as a

ing
14

for

hopes

all

a

minimum

compulsory

of

favorable"

other

are

organized efforts

private contributions for

facilities.

college

a

10th

year

pulsory.

of schooling

Poland

has

the

under
would

be

to loans under

interest rate

The

program.

bill

the

in

formula

col¬
lege or university could not ob¬
tain financing for an ; academic

facility

3V2%,

from

31/2%

the

would

so

that if

other

Federal
the

loan

a

resources

at

Government
at

money

some

the

within the authority of

national

is

that

of

contrast

in

many

ucation

compulsory

is

more

nanced.

must

the
be

The

interest rate for long-term

formula

the

in

pro¬

posed act is much lower than the
interest

rate

which

Federal

the

Government has to pay to borrow

for such maturities.

money

When

such

interest

rate

a

small

der

is

It

Federal

loans

is

tuition

free

academic facilities in

leges

and

could

universities

col¬
be

utilized to accommodate substan¬

dents

each

stu¬

numbers of

tially increased

and

Second,

our

decentralized.

basis of operation is
Education

is

the

four

earliest

exceptions,

school

leaving

16

is

age,

the

something

unique

Government

takes

Federal

over

almost completely an area of

financing

sale of bonds in the regular mar¬

reasonable

at

have done in the

rates

and

Continued

private

theretofore had
satisfactorily in the

market

and

the

ciary institutions rely on
eral

Government for

benefi¬
the Fed¬

such

finan¬

ple, it

(as

The

proposed program would be

Feb. 13 that the four state col¬

have

announced

million

$55.5

a

for
additional class¬
$3.15 million to be financed

revenue

bonds and $24 mililon

by proposed state appropriations.

Consequently,

we

increased

college

be

financial

utilization

of

private

Federal

the
the

Report to the
Committee on

Credit Programs:

"They should not be established




more

isting

efficient

Telephone LAfayette 3-6800

/

private

in

and

The National

by

market,

donations,
of

and
ex?-

laboratory
'

Area Code 617

TWX 617-451-3701

vacancies,

utilization

classroom

facilities.

assistance

present

in the

by

enrollment

should
provided without the proposed

financing

in

Street, Boston, Mass. 02106

that

the coming decade can and

increased

President

believe

40 Water

the needed academic facilities for

regarding government credit

programs

Municipalities

For exam¬

leges and universities in Indiana

directly contrary to recommenda¬
tions

States and

they

reported in the press

was

Federal

cial support.

Obligations of

institutions

receive state support.

by

in General

past) and many

controlled

publicly

which

been handled

in

this

country and that the institution of

universities
through the

Colleges

program

the

and

tried

with

day.

obtain financing

(d)

rooms,

Program),

vocal

ucation say, it is true that we have

from state to state, but

well-planned scheduling, ex¬

eral

Housing

compulsory

limits. Thus compulsory education

percentage of the day and

authorized (just as with the Fed¬

College

decisive

laws vary

available

colleges.

reported

isting

on

of low-

program

to

privately fi¬

Whatever

it has been recommended that un¬

colleges and universities ket

the

under

com¬

prominent critics of American ed¬

(c) Most college classrooms and
are
utilized only a

can

loans to

as

moved

countries secondary ed¬
beyond

limitations

legislation.

Among the factors under state
control

The

laboratories

that

rate.

years

Cam¬

when the fact is remembered that

year.

as

the terms and con¬

as

ditions applicable
this

upon

equally

7 to

additional students.

of

to obtain

sources

conditions

and

four

schooling;

with maturities up that
private donations to colleges
if the applicant is un¬ and universities are now running
able to obtain the amount of such
at a rate well over $1 billion a
"from

have

to

pupils age

program

terms

years

by 1970. Last year, Brazil intro¬

duced
of

from 14 to 15

to 50 years

loan

leaving

minimum school leav¬

Turkey

age.

education

the

is given to the states and is

state plan

locally

school

United States Office of

tion

states

is higher. Great

age

earliest

ministry of education bodia, six. Denmark reports fa¬
We have a Commis¬ vorably a movement to introduce

no

America.

community in America. In addi¬
all

W.

is 15; Belgium is preparing to

recently

both free and universal education
at

John

Education, eight years of compulsory educa¬
but he has no line control. In the tion; Sweden, to nine. One cduld
of
expand the list.
numerous established instances of

educational

that opportunities and a growing num¬
institutions ber of communities are providing

fine

state,

Keppel at present—who heads the

shown

have

many

the

in this country. Let us remember

sioner
Base of Operation
American

of

gated by the state in turn for ad¬

in

different base of operation.

tuition free college and university

Surveys

there

limited

a

the

many

Britain's

educational ministration to local governments.

the

*

(b) There

made under

be

without the proposed Federal as¬
sistance:

13

selected individuals. Public educa¬

for
pro¬

facilities

academic

needed

*

facilities

education

higher

leges

three

over

for academic

years

for

low interest rate

promoting

are

incentives in the form of substan¬

tially lower costs to borrow from
There

page

executives. You, however,

lenders

they should not be given special

the

S. Lee, Valley National Bank, Phoenix;
Milhau, Chase Manhattan Bank, New York

Educated America

an

Continued from

junior

guarantees),

without

or

ad¬

obtain

can

terest rates from private

(with

which,

are

ance.

Federal

object¬

program„

adequate funds at reasonable in¬

substantial improvements are be¬

(B) $1

far as

as

vanced.

the

E.

de

extend the age to 16; Quebec has

Of

involved, it is especially
important that the terms and con¬

with

Mrs.

in

are

ditions

&

age

ives, determine the basis

Thus, it is apparent that even
salary

*

^

Mr.

The Investment Potential

$276

—

Joseph B. Wise, Mercantile National Bank at Dallas,
Fuller A. Harrington, Harrington & Co., Jackson* Miss.

are

$443

—

South Carolina

states

they

$380
$801

Kentucky

the

Mrs.

York;

"When both public and private

funds

consistent

Mississippi

in

unless

*

annual salaries of all ele¬

average

continued

or

&

New

clearly needed."

estimated

the

that

by

Associa¬

Education

National

tion

published

1962-1963,"

tistics,
the

Mr.

D. C.; Mr. & Mrs.
Baltimore

71

of Boston

on

page

72

T.

David

Ralph Fordon, John A. Kemper <fi Co., Detroit; Jack Clark, Wachovia
Bank & Trust Co., Winston-Salem, N. C.; Gordon L. Calvert,
Investment Bankers Association, Washington, D. C.

statistical fact of

Continued from page

American

Educated America

an

school

public high

structure and

with its diversified

opportunity is an American con¬
tribution

international

to

tion.

'

'

educa¬

: 1

>

only in¬

But this uniqueness is

directly connected to an inevitable
the

of

facts

prolonged

state

period

and

a

universally

of

variation

that

educational

the

con¬

out¬

in

will

vary

relation

in

its

oppor¬

state

from
to

in¬

is

product

educational

The

evitable.

to

financial

investment and other discreet fac¬

Second, the standard of at¬

tors.

values, given

control

The

grade lev^l

or

is

below average,

—annual income

levels.

need

I

slow

that

plants

to be

time

causes

also

take

to

for

■;

•

us

may

PHILADELPHIA-BALTIMORE STOCK EXCHANGE
BOSTON

EXCHANGE

STOCK

(ASSOCIATE)

PITTSBURGH STOCK EXCHANGE

(ASSOCIATE)

a

vanishing

plorable

would

we

concept

were

stand¬

The combination of

operation

STREET, N. W.

course

de¬

a

present

a

would

class

of

base of

new

create

a

educationally

outcast individuals. It is my hope
that

Teletype—202-965-0503

STerling 3-8040

achieve¬

concept for Ameri¬

that

mandatory

WASHINGTON 5, D. C.

Of

education and

can

1411 K

minimum

new

a

as

become

persons

aware

of

the inevitable results of the futile

arguments for national standards,
we

Underwriters

—

Distributors

-—

Dealers

reject

may

energies

our

them

in

utilize

and

positive

the citadels of

upon

assaults

high

our own

concepts of the worth and dignity
OFFICES

Washington, D. C., Bethesda, Maryland,

IN:
'

Falls

Church, Virginia, Greensboro, North Carolina

of every

man

education

human

and

concept of

our

liberation

as

of

place

change

^

than is
more

these

to

is

of
and

quickly

essentially through the

school

of

such

people

growth

is

this

cities

and

suburbs.

obvious, and

are

of it.

aware

all.

not

There

urbanize

to

from

the

school.

I

refer

Markets In

of

poses

of

country,

our

technological

SECURITIES

WASHINGTON

reordering

of

ratio

/

You

are

as

familiar

1920

during the late

Johnston, Lemon & Co.
i

MEMBER

PHILADELPHIA-BALTIMORE-WASHINGTON

UNDERWRITERS

-

Chicago

in that

period,

fact that

STOCK

DISTRIBUTORS

The

-

EXCHANGE

has

after

supreme

1,000

the

suburbs

the

while
are

Each

DEALERS

somewhat

Building, Washington 5, D. C.
STerling 3-3130

Telephone:

Teletypes
Trading Dept. 965 0260-1-2
Branch

Office:

115

North

of our

some

while

reaches

loss

concentrated

wealth

of

ag¬

gravated by the movement out of
the affluent and the movement in
of the

ilies.

economically marginal fam¬
In

Chicago

behind

each

clining

for

our

so

school

our

pupil

taxable base

has

several

been

years,

have

needs

de¬

while

increased,

that this year we have $30 less

per

pupil than

ago

using the

had

we

same

a

few years

Pupils

rate.

increase faster than property
ues

do.

;

.

many

as

the

Carl




Private

leveled

off

temporary

a

val¬

prived
for

schools

to

We

have

extra staff.

that

special

work

sixth

.

grade

class

to

size

100;

held

levels

schools to 600.

a

a

pupil less may

and

We have

provided

We have the evidence

these

deprived

culturally

children, half of whom have been
selected because

and

great deal until
of chil¬

rooms

For 30 children this is $900

Oldest

Investment

children

will

of

rise

school

again

in

they were below

reading,

can/learn,

traordinary
hold,

if

their

can

gains

be

Banking Firm in

age

school age pop¬

which

learning

Phone

M. Loeb, Rhoades

to

& Co.

the

equally familiar with

are

migration of

urban centers.

population,
for

1963

our

Of

the

places

population to

Washington, D. C.

and

Distributors

Municipal
and

Corporate
Securities

FOLGER, NOLAN, FLEMING & CO.
INCORPORATED

MEMBERS NEW YORK STOCK EXCHANGE

our

15th

Street, N. W., Washington 5,

D. C.

Telephone Sterling 3-5252

180 million

World
125

725

Almarjac

million

in

Direct Private Wire to

they

situations

marries and has children.

Asaph, Alexandria, Va.

taught

making ex¬

some

Underwriters

shortly

in

culturally de¬

through

grade

25;

in

with

areas

first

pupils.

experimented

have

we

summer

grade

sound like

dren.

years

onslaught'

high schools; but the

number

You
Direct

1950s.

doubled

as

Over the last few

teaching skill.

„

example. The

has

the

absolute

ulation

and

rate

per

nearby

staffed at 70 per 1,000.

September

am

gives the nation's ele¬

when the present
Municipal Dept. 965 0887

Saint

1940s

as an

mentary schools

respite

Southern

I

v/'-

this

along

efforts

approximately 33

now

23% of our first graders are not
ing faster than its wealth, but in ready to I read, thus demanding
the major cities there has been a
more, not less, teaching time and

so¬

'

to

1,000 pupils. Chicago's ratio,

the birth rate

birth

the rate

as

•

pro¬

50

country at large has been increas¬

the

of

ciety.

with the growth in
ESTABLISHED

to

and

Educa¬

every

to

population

staffing

a

the

people, to the swift urbaniza¬

tion

new

Commission

population boom, to the mobility

Firm

that

—

our

None

to

more

—

The

areas.

Policies

of

cities

the

suburban

tional

the

to

movements

The

fine

particularly line, is

effect,

twin

upon

personnel; and

are

another

the

hopes

our

size

teachers

more

between

193,000

other necessities

of

and

Other major

building facilities

But

popula¬

class

of

city children must come. No ma¬
cities jor city that I know about is
similarly affected. The staffed per 1,000 pupils as are our

1963.

have been

strains

total

Chicago in an

it is translated into

more

Yet it is

rooms

not

instantly responsive

changes.

class¬

more

affected by certain types of social

must be

To

will

we

Improving the

through

ters has resulted in

Thirty dollars

spirit.

institution

room.

better materials and equip¬

rooms,

higher birth

the

The New Society
No

accom¬

faster.

situation

reduction

many

alternative does

itself in

been

run

have to

that

ominous.

are

same

educating

of

in

pupils

the

rate and movement to urban cen¬

nearly

national

zero.

has

centers

large

to

persons

1953

would arrive close to

we

in

with

us

low that all could attain

so

it. Thus

run

in

acceptance of variation or the

ments

conclusions

of

the

cost

The

tion

■

of

annual

places

in

live

to

population, while 58

1,000

movement

equivalent, approximately,

of

million live in central cities. This

Among persons statistically lit¬

reduction

2,500

two

continue

erate, the choice resolves itself in¬ been
to

of

Only 47 million peo¬

more.

increase

seriously the ill-con¬

pleas

ards.

MEMBERS

the

aware¬

provide

democratic

in

we

Such

expect.

should

pay

mature.

to

of the results

aware

reasonably

ceived

& CO., INC.

the

of

urban

York

you panied
by a counter movement ment, or more teachers becomes
organisms— from central cities to the suburbs. increasingly remote.

of the facts

Awareness

we

HODGDON

or

under

children—require longer

or

Manhattan

Chase

Manufacturers Hanover Trust Company, New

remind

only

growing

shorter

not

reading grade

or

at knowledge of the price

school leaving age will vary

any

population, how¬

Trust Company, New York; George
Bank, New York; Evans G. Morgan,

Dikeman, Jr., Bankers

Varley,

communities

or

life, that by def¬ ple

matter what is being measured

ness

tainment at anjr

the

half

grouped,

ever
no

put, character, and attainment of

tunity

:

is

clusion

state

conclusion with two

education.

compulsory

71

inition

000

Thursday, December 26, 1963

.

or

urban
more,

as

to

J.

.

.

112 million in cities of 10,-

attendance is unrelated

intelligence levels. I need only
remind you, not expand upon the

long

as

Of

Edwin J.

Drexel & Co., New York; Eugene M. Reese,
Cook & Co., St. Louis; Herbert Schollenberger,
Campbell, McCarty & Co., Detroit

Guernsey,

Newhard,

The Investment Potential

the

Chronicle

The Commercial and Financial

72

Pershing & Co., New York City

Volume

Eugene

198

Number 6328

Lynn, Wertheim & Co., New York; Mr. & Mrs. Walter W.
Hess, L. F. Rothschild & Co., New York

approximate those' of

advan¬

our

is

prime

became

happening
cities

the

in

in

importance that
of what is

aware

and

to

cultural

major

our

of

background

population, traditional urban

experience, economic sufficiency,
and

financial

capability

public education.
demands

The

diminish.

23

ago,

years

educational

to

as

justifiable

increasing

are

resources

adiilt

Whereas

Chicago's

the

as

national

of

the

the

cite

the

age.

I

know

Chicago. It is

urban

state

Chicago

center

because

all

in

aver¬

I

typical large

a

respects—

trends, problems, and importance
the

to

nation.

intellectual

If

need

move

in

and

problems

—

and

prospects require not only aware¬
action.

but

ness

certain
not

dwell

ceive

to

long
be

everywhere
cation
serve

is

deprived

ally

on

what

required
in
be

a

I

of

America
in

I

our

as

is

it

move
can

ahead

and

are

a

us.

"It takes
ation

said

less

shackling

ignorance

today

leged

upward

disappear.
unless

away

all

of the

is

opportunity has somehow

equalized
for

the

state

from

free

way

to

and

the

readily convey ignorance and

ineptitude from state to state.
A

certain

amount

tience

is

an

also

of social

two

years

able

ago:

The
this

Second,

inherits

a

culture

which

rising gen¬

eration

acquire, not

tomatic

Do we

high standard—ex¬

may

and

curriculum

economic
ties

of

civic

and

adulthood

their

of

people for

young

responsibili¬

in

will not live in

our

the

life

real

children

Our

day.

own

the

generation, for

they will be unable to do so just
we

unable

were

live in

to

our

required

the home is unable

the

twentieth—and

the

The

child

for

learned

once

from

his

day he has probably

serve

to

the

school

riculum

taught

because

a

limited

the

works.

Let

cordance

the

cur¬

the

a

voca¬

never

to¬

even

strive to act in

us

with

life around us; let

had

home

his

father;

visited the place where his father

once

While

generation.

chil¬

our

centuries.

twenty-first

skills

tional

of skills

range

the broad plateau of

on

dren—the

exciting

Us

con¬

may

be

page

74

house,
in

birthright, but through

as

an

of

the

public

school

of the

isolated

red

addition

is

taught

au¬

Grade

footnotes.

like

that
was,

and

done

are

dia¬

discipline,

.

is Connecticut issues,

firm

—

business

in

both listed and unlisted. As

since

1891

—

we

are

not

and distributors, but also brokers

our

Connecticut

and dealers maintaining firm

trading markets in all local securities.
vited and will receive

a

only underwriters

Your inquiries

are

in¬

careful attention.

understands

more;

is

not

indeed

it

but it differs markedly

school, just

was

as

when

we

were

automobiles dif¬

fer, and scientific concepts differ,
and

.

Shakespeare

School

any

from what it
in

reads

everyone

Ninth

the

mental

for

Specialty

school

is

sentences

Our

content

stereotype

our

where

columns,

when

backward

plan

The
the

is

catapult

some

must, I believe, look
not

and

course

on

investment

differs.

CHAS. W. SCRANTON & CO.

Progress

Members New York Stock Exchange

NEW

HAVEN, CONNECTICUT
Teletype: 203-772-0938

AND MUNICIPAL BONDS
CONNECTICUT COVERAGE
Over

Investment
Second Oldest *




*

58

years

of

Banking and Brokerage

in Connecticut

Bank in America

'

★

★

★

PUTNAM & CO.
Member

6

of the New York Stock Exchange

Central

Row, Hartford 4, Conn.
Telephone 525-1421

INDUSTRIAL

From

NATIONAL BANK OF

Branch Office
1000

RHODE ISLAND

York

City—WAlker 5-7887;

Branch Office

Branch Office

31 West Main St.

245 Main St.

18 Broad St.

New Britain

Farmington Ave.

West Hartford

New

Middletown

New London

Branch Office

Branch Office

Branch Office

Branch Office

Branch Office

24 Central Ave.

30 Mason St.

71 East Center St.

69 Church St.

Water bury

Municipal Bond Department

Torrington

Manchester

Willimantic

Wires and

±

teletypes

to

principal cities

REPRESENTATIVES THROUGHOUT THE STATE

of

that

assure

opportunities

Continued

broad curriculum and the corridor

ac¬

grandeur

fronting all youth today

New York Phone: REctor 2-9377

STATE

as

encompass

the

also.

us

we

programs.

school

has

and

debate

we

never

B

the members of the

and

to

today

diversified

a

less affluent and

our

upon

forward

and

Toynbee wrote

of

citizens,

effects

all be¬
"Man

progress

as

must

won

grammed to learn grammar, Latin
pa¬

required.

article, "Education:

Long View,"

has

that technology, which

us

of many

in
In

it

prepare

parents'

quotation

remind

go

commitment

They will not,go away until edu¬

edu¬

to

This

school

bility and economic displacement

translated into dollars for schools.

cational

which

to

hundred

They will not

our

privi¬

acquire

to

is largely responsible for the mo¬

artificial barriers

thrust,

less

a

were

to be the impetus

are

has

as

class

can¬

If willingness and abil¬

years ago.

ity

a

of

more

a

class

social

gener¬

that

out

way

just

narrow,

teach

was

de¬

It is education's historic purpose

says:

the full cultural heritage of the

our

are no

than

the bonds of servitude

.

admission."

nation

a

its

privileged into

as

Unless his fu¬

that

.

one

family

a

manded

life

of

and

anticipated,

of change in business are accepted,
anticipated, and demanded.
."
to

than

more

for

made

exist half slave and half free.

The bondages of

should.

required of

really want

His image is

own.

be fitted.

can

to

change in education must be

systems

Later in the article he

is the

bright, the futures of

Lincoln
not

First, I believe, certain commit¬
ments

culture

American—he,

an

like handles

are

alternative

own

con¬

position

as we

Our minds

to
op¬

accepted,

which

children will be dim indeed.

own

shall

us

if

our

Not only

too, is America.
clear

Ford

its purpose and if our coun¬

try is to
lieve

to

actions,

child

want

children to have?

state,

already implied

necessary

we

and

elders....

migrant, the indigent, the cultur¬

been

Action and Commitments
Because I have

Do

educational

an
we

as

being inducted into it by their

who

indigent,

deprived

good

as

portunity

move

educational

and

have

it?

the

migrant,

culturally

must

achievement

economic

out,

wealth

as

the

of

surpassed

and

the

ture

attainment

population

and wish to pursue

want

all

to

even

level

national average, today it is below
the

available

Mr. & Mrs. William D. Byrne, Phelps, Fenn <fi Co., New York;
Bertram S. Behrens, Bertram S. Behrens Associates, New York

Edwin J. Dikeman, Bankers Trust Company, New York; Mr. & Mrs.
Edward B. Mower, Newhard, Cook <ft Co., St. Louis

education—and do

our

it

want

can

of

persons

cellence in

'

we

taged suburban school systems.
It

The Commercial and Financial Chronicle

.

.

.

The Commercial and Financial Chronicle

74

.

.

Thursday, December 26, 1963

.

fJ

S.

Milton

certain

The Investment Potential §M

Of

Continued from page
obtained
of

Educated America

an

nual

73

vidual

fulfillment

"Most

them, and tantalize, warp and

frustrate

the

fewest.

among

ness,

and

among

public

the

at

a

col¬

1960:

York for

given

little

or

no

the ways of learning

to

growing that do not involve

When the populace as
whole comes to recognize that

college.

large

educational

our

have

thought
and

development of aware¬

New

parents, teachers, and coun¬

selors

We, therefore, must pay atten¬
tion to the

of

.

.

Finally,
make

best

will

they

be

must

we

attractive and increas¬

ingly honorable the profession of
have

year

P.

Lester, Jr. of Lester, Ryons &

Co., Los Angeles, was named the
winner

of

the

when

give

we

the

teacher has

the

best

of skills which must be

Mr.

ning

to

second

in order to continue in

three-year program.
Lester

ceived

;

introduced

was

and

to
re¬

$500 award for his win-»

a

paper

"Qualification

on

in

Persons

offer

from

skill

should be

an

enduring

in

and

wisdom,

of

Securities

the

A native

Our

heart.

of

;'~J

Business."

a

joy in living,

a

generosity

a

of

fund

a

teaching,

Californian, Mr. Lester

Stanford

attended

thing in their lives and can take teaching force must be drawn
developed. place in a variety o f settings, from the most able and promis¬

education and of the wide variety

As

and

the Convention delegates

chil¬

our

the

first

the

of

Pennsyl¬

of

Philadelphia.

in

classes are required to sub¬

mit essays

All-Institute

1963

Wharton

the

University
campus

Members

Bernadotte

dren to the teacher in school. We
want

the

on

vania

—

at

Spring

School of Finance and Commerce

Essay Competition

We give the best hopes

teaching.
we

%

personal
may

action,

to

as

more

each

Winners of 1963

HOLLYWOOD, Fla.

And

furthered.

Stenger, The Milwaukee Company, Milwaukee;, Edward D.
Jones, Jr., Edward D. Jones & Co., St. Louis

.

education

leagues, of the broad meaning of

and

they

however,

sought for all."

report to the Carnegie Cor¬

poration

by the greatest number

will

education

of

types

Emphasis will be on indi¬

be

G.

Abbett

recede.

growth,

Robert

Co., New York; Mr. & Mrs. Albert
& Co., New York

Harry A. Jacobs, Jr., Bache
R. Hughes, Lord,

Pfeffer, First National City Bank, New York;
Emrich, Julien Collins & Company, Chicago

Mr. & Mrs. Delmont K.

University

undergraduate

an

his

received

in

and

M.B.A.

as

1954

in his

said

then

an¬

artificial

the

emphasis

on

degree from

college gradu¬

the

drawn

they

He

joined the trading department

encouraged to remain and honered

Gardner

young

at

Lester,

for

John

ing

of

ates;

our

once

personal

Angeles

in

an

important,

General

Partner

is

Money

factor, but respect and

UNDERWRITERS AND DISTRIBUTORS

rity

attitude

of

the

on

to

be

be

purchased,

B. P. Lester, Jr.

also

need

of

Conclusion

INVESTMENT SECURITIES

the State of the Union he said

on

in

CORPORATE

the

MUNICIPAL

•

"I profoundly hope that

part:

tragedy and torment of these

terrible days will
in

few

MEMBERS

&

Co.

in

us one

After

a

sentences he quoted the

more

familiar

sorrow."

our

following

NEW YORK STOCK EXCHANGE

together

us

fellowship, making

new

people

Prescott

bind

to

the

from

stanza

song

school child in

every

America:
900

NATIONAL CITY BANK BLDG.

•

PR.1-6300

•

•'

Shaker Square

•

Canton

Toledo

•

Columbus

•

Sandusky

•

And

J

this

If

fulfilled

■

was

named

our

man,

as

thee,

'

We

young.

decide

Special Situations

now

made

have

glimpses

successor

man

Underwriters and Distributors

of,the
it to

or

a

whole

in

and

few and the

Convention

Chairman

of

J.M.RUSSELL*ea.'Nc
NEW YORK

STOCK

Members

of

many

cre¬

Wisdom

STOCK

COMMERCE

BLDG.

EXCHANGE

our

children

On

means.

our

STOCK

EXCHANGE

(Associate;

hood

in

must be

the

CLEVELAND,

OHIO

44114

TELETYPE—216

/>•-•

574-9763

TELEPHONE/ 241-5050

•An address
52nd
ment

Annual

Bankers

opportunity

Dominick

of

&

Dominick,




native of Balti¬

a

received most of

New

including

education,

ance

at Johns

McCoy College and
Institute.

Baltimore
vestment

attend¬

Hopkins University's

Officer

a

degree from

He

of

is

an

for

man.

Institute
a

the

Investment

of

three-year executive
program

Association

for

sponsored

and

other

partners,

from

experienced
member

IBA

a

week

Safe Deposit and Trust Company,

Baltimore,

having

association

with

Taylor

a

is

Cashier's
ment

over

that

and

Brokerage

is

Convention

of

Association

years

of

member

Association

Baltimore,

40

Bank.

of

and

three children.

Merrill, Turben & Co., Inc(Established 1924)
MEMBERS
NEW

YORK

STOCK
STOCK

AMERICAN

,

EXCHANGE

EXCHANGE

Ajax Magnethermic Corp.

Inland

Big Drum, Inc.

E.

Central National Bank of Cleveland

National

Cleveland Trust

Company
Dover Construction Company
General Corporation of Ohio
Gregory Industries, Inc., '
M. A. Hanna Company
Hanna Mining Company
Higbee Company
Statistical

'

F.

Homes

Corp.

MacDonald

Co.

City Bank of Cleveland
National Screw & Manufacturing Co.
Northern Ohio Telephone
Parker-Hannifin Corporation
Society Corporation
Union Commerce Bank
U. S. Truck Lines, Inc.
Warner & Swasey Company

Information

Available

Upon

1612

Union

Commerce

Request

the
of

1963.

Bldg., Cleveland, Ohio 44114

Trading Dept. 216 574-9170

Telephone
I

MA 1-6800

BRANCH

Invest¬

America,

Ashland

•/Canton

•

Center,

Municipal Dept. 216 574-9621
OFFICES

Cleveland

Columbus

•

Heights

Dayton

•

Youngstown

Mr.

the

Invest¬

Houses

married

We

by Mr. Willis before the

In¬

Mercantile-

York.

must act.

we

Hollywood. Fla.. Dec. 3,

/

the

by

Education

IBA

Severance
UNION

Taylor is
where he

our

depend the pros¬

and

Mr.

action regard¬

family of

aware

Spring Street Forum, all

Angeles.

MIDWEST STOCK EXCHANGE

can

pects of America and for brother¬

—

MIDWEST

EXCHANGE

AMERICAN

and

ing /educational
all

—

here

the

Committee, Avery Rockefeller, Jr.,

enriches. Education—excellent and

available—is, the

Los

his
nual

its

family

Humanity enables.

awareness

and The

we

we

Knowledge enlightens. Skill
ates.

Club,

this

it.

to

Exchange

Stock

the

only imagine—is to belong to the
children

member

a

the Association's recent 52nd An¬

whether

catch, the glory of which

Active and Inactive Securities

Education

also

is

He

really

in

which

of

member of

University Club, The Bond Club

more

firms. Registrants meet for

where the first re¬

the

we

a

Group

perhaps

never

a

with

1962

we

say

country and decide
world

affairs, he is

the

of

at

announced

were

Los

in both the sales

California

Committee.

Competition.

Essay

Both winners

since

brother¬

obligations

must

in IBA
the

winner of the First

sponsibility of the elders is for the

Ohio's Unlisted Markets

R.

Baltimore,,

Company,

Class

officers,

case

have

Guy

in

has been

and syndicate departments. Active

in

Year

by

who

the

is

we

Banking.

-

tried

really

family of

...

on

shining sea."

those

are

never

it is because

Since 1933

Trust

personnel

to

sea

There

hood.

and

development

brotherhood

From

have

grace

thy good

crown

With

Youngstown

Investment

Banking is

America.

God shed His

Associa¬

part of its annual Institute

as

The

"America,

CLEVELAND 14, OHIO

by

sponsored

Bankers

Taylor of Mercantile-Safe Deposit

President Johnson's message

In

Investment

tion

paid.

Competition

Essay
the

Co.

1955 and

responsibilities

Guy R. Taylor

teachers

part of the public, which

cannot

OF

integ¬

an

toward

of Business.

&

Ryons

and

professional

growth.

be

must

School

Graduate

in

has

Volume

198

Number

6328

.

.

1

The Commercial and Financial Chronicle

.

75

dustry for consulation and

dangers

ing

of

and

of

Continued from

complete, has led to
able

conclusion.

lation is necessary if this

10

page

if

practices

described

in

Working With Government

Perhaps

the

could be eliminated to

Report

and

security

great extent by the imposi¬

tion

enforcement

standards

of

of

ment.

securities business.
to

in

engaged

persons

the

the

failed

have

ability

demonstrate

their

proposed

legislation will not in itself guar¬
the

antee

achievement

these

of

objectives, but it will provide the

order

to

here
the

nor
we

IBA

had

the

in

last

This

known.

rience.

we

extensively

not

a

new

the

by

SEC, the Rules for Fair Practice
and other dictates of the National
Association

The

of

regulations
Stock

Exchange,

Stock

Dealers,

Constitution

the

and

Inc.,

Securities

of

-

New

and
York

American

The

Exchange, and the various
should

lation
are

be

and, if so, what kind,

experts

contribute

and

back

able

to

position to

There¬

Washington

to

in

order

with
to

be

testify before the House

Committee

in

endorsing the

this legislation.

of

sage

a

we

this afternoon to

Hanson

Murray

in

constructively.

fore, I propose

fly

additional regu¬

pas¬

We be¬

lieve it is most important that we
back

constructively

raise

the

entire

the

best

an

effort

securities

to

indus¬

standards

which

try

to

the

industry itself proclaims and

increase

our

judgment that this legis¬

aware

riod

The

crease

since

offices
the

our

300%

a

We have

1950.

this

across

enterprise
senior

the

in

We
have

a

So

the

ernment

importance of

gov¬

regulations and because

just

I

in

part

to

me

of

by

over-

our

own

exactly what

say

without appearing to crit¬

mean

icize the Board of Governors and

the

place
ing

World.

developed

watchful

System

of

I

ing.

fine

expression

an

The

are

years

New

as

York

Exchange and I know how

is

the

a

body

I

able

of

men.

have

Funston

of

performance

to

many

bodies

the

their

a

regulated indus¬

believe

I

and

that

ments

and

Congress

president of

not

any

way

in

itself

does

compromise the

which Government

independence

NASD

and

as

I

cratic

for

make

difficult

be

but

process

them.

my

it

and

The

,.

pro¬

plea for may
is

the

demo¬

I believe our

firms, the real economic units of

industry, should insist on it.

the
'

*An

52nd
ment

SEX!

address by Mr. Ames before the
Convention of the Invest¬

Annual

Bankers

Association

Hollywood, Fla., Dec. 2,

of

America,

1963.

islative

program

recognized

Federal legislation

that

that

serious

raised
has

so

field, if it is to be effective,

the

ment

The

and

problems

are

and

have

and

they cannot be solved from ivory
towers.

Practicality is

ingredient

and

wisdom.

collaboration.
complex

industry

that

an

can

essential
be

sup¬

as

of

allowed

from

an

was

heard

unlikely

quarter,

there

of the

a

SEC's

voice complain¬

turning

to in-

MUNICIPAL ISSUES,
STOCKS

be handled

to

think

by third parties. I

UNION COMMERCE BUILDING

CLEVELAND 14, OHIO

regulatory and the self-regu¬

will

become

subject to the faults

bureaucracy if

we

the trouble to tend

Teletype

COLUMBUS
LIMA

Exchange, Midwest Stock Exchange,
Exchange (Associate)

been

watched

regulated

closely

Teletype

621-7071

216-574-9295

self-regulatory

bodies
as

problems

Many
But

for

We work in a gold-,

many years.

that

in

spite

have
of

Butler,Wick & Company
(Established 1926)

it should

been

this

MEMBERS

the
New

be

must

more

American

done.

York Stock

Stock

Midwest

We

tackle

must

problems

these

one-by-one.

must

effort to

remaining
But

great

to

avoid

taken

be

ness.

cure

The

the remaining sick¬

Special

Report

quite

rightly analyzes the troubles that
remain

in great

made

in

detail but if

belong
agers,

against

to

the

we

detail

will

and

that

we

maim

security

firm.

con¬

Exchange
Exchange (Associate)
Stock Exchange

Ajax Magnethermicu

i

Ohio Leather
Ohio Water Service

Albee Homes

Atlantic Business Forms

Sawhill Tubular Products

Automatic Sprinkler

Union National Bank

C. F. M. Co.

Valley Mould & Iron

Commercial Shearing & Stamping

Youngstown Fdry. & Machine

Dollar Savings & Trust Co.

Youngstown Research &

Development

Mahoning National Bank

6th Floor Union National Bank

properly

responsible

the public

would be
in the

great
matters

managed

Correspondent:/ Clark, Dodge & Co., Incorporated

:

and

by Federal, by State and

cerning

Telephone

HAMILTON

YOUNGSTOWN

_stL

;

CINCINNATI

CANTON

GRANVILLE
TOLEDO

SPRINGFIELD

Our business

present.

permit rules and regulations to be

Bldg., Cleveland 14, Ohio

GREEN

FINDLAY

ELYRIA

busi¬

own

maiming the healthy body in the
•'x.'it

DAYTON

MANSFIELD

over-regulation

of

danger

clearly

care

'

1-6400

ness.

shows

Established 1914

Telephone MAin

& 9421

BOWLING

ASHTABULA

AKRON

do not take

our

216-574-9420

that

must face the fact

we

solved.

CURTISS, HOUSE & CO.

Exchange

vital negotiation with government

latory bodies themselves can and

and

Midwest Stock

the

bf

the

Recently,

Exchange

Exchange

industry

our

vice

businessmen.

Stock
Stock

policy

much

too

York

American

to tap

plied only with the help and ad¬
of

New

I believe that the owners

managers

IN:

SECURITIES

MEMBERS

be

its

of

source

DEALERS

the

to

must

organized itself

AND

MUNICIPAL

AND

CORPORATION

believe

I

question

primary

have the benefit of govern¬

bodies.

the

to whether the industry

as

in the securi¬

must

Mcdonald & company
UNDERWRITERS

to

goes

and ' not

self-regulatory

approach to the leg¬

our new

Special Report of the SEC clearly




say

It is not
that business

be.

solidly backed

criticism

itself

industry

Essential

Collaboration
The SEC's

real

My

be.

New York

may

he

by the industry.

fish bowl—and that is

Union Commerce

the

turn

made

be

cedure

self-regulatory

in

valuable

committee,

such

the NASD, William

should be

Haack,

should have.

PREFERRED

American Stock

to

is

bodies—the Stock Exchanges and
the

Harding Committee or

a

that

he, the other

exchange presidents and

by

New York Stock

so

on

the

to

a

the

have been so busy or so
inattentive that the decisions have

too

dressed

or

or

managers

the full scope
problem before it becomes

brought to bear
of the

firms

attention

sharpest

directors

of

Exchange,

an

satisfactory to

SEC.

the

of

their

of

time

that

and

decide important

It is not enough t6

board

hoc

ad

though

rules of both the self-reg¬

men

us.

of

NASD;

in

which will lead

negotiations

problem in

The security in¬

Keith

with
years

try and the governmental depart¬

Members

practical mens' minds

few

a

staff

an

new

a

the

harness

distinguished

and

worked

over

to

government has given truly fine leadership to
constructive ends. Consul¬ The New York Stock Exchange,

tation between

ing

participate

to

know

We

in reaching

effectively with

toward

ties

right

have

crystallized in third party
for negotiation.
do¬
The other part of the plea is ad¬

admiration

served six
of

self-

own

have done and

have

I

our

by

say

Governor

a

of

profound

my

what they

must

we

high premium on work¬

a

what

Stock

industry

under

well

government

Presidents

the

a

issues for

They must organize their time or

of other countries of
our

their

on

ulatory

for

danger

of

aware

fact.
is

conclusion
of

am

reality it relates

it

valuable

to let

must insist

managers

cult

by

Banking

because

senior

self-regulatory bodies. It is diffi¬

Banking Industry. Our

Western

free

But

that

the

growing

a

in human

strong

governing

dustry is too large and too diverse

It is in two

plea.

a

parts and I make it first

regulation,

independent and separate Ameri¬

the

have

industry directly to the owners and the
special problem be¬ managers of security firms. It is

ace

the envy

I

a

"consultation"

of

its early stages.

- >

securities

very

of

cause

also

I

accomplished

wise

man¬

But

wisdom

related

new

for,

place

to the solution of the

Over-Regulation

Danger of

procedure

their

hollowness

the

these

(A Two-Part Plea)

regulatory bodies, so let me pref¬

Investment

boards.

that

of

raised

rightly

how

among

all

com¬

membership

in

agers.

people.

job opportunities to Americans—
Investment

be^found

must

the

authority

policy judgement

wise

of

source

of

for

submission of

Exchanges

to

a

bills

the

pays

effected

vote; that the constitutions of the

when

the

the

capital

to

Exchanges. The most fundamental

This is

of

that

fully

am

submission

the

those

requires

support the NASD and the Stock

feature

projects started each year—giving
the

to

rules

of

managers

ex¬

thousands of

is the

country

and

owners

for

also

the

by

of

high level of employment in

this

handled

are

security

I

ment, and that NASD

business

and

contributing factors to

important

successful

an

One

economy.

-

in¬

2,000

country

organization to serve

panding
the

firms,

of

reg¬

that government procedure

calls

ex¬

operating

practical

tough,

problems

and

war.

or

security

the

with

themselves.

rules

reconstruction

of

dis¬

has

COMMON AND

World

relation¬

provide.

can

tinctive

The

AND

firms

during the remarkable pe¬

rules

concern

finally negotiated before

or

country and in part the Western

pansion since the

that

consultation

have financed this

we

is that no

operations should be crystal¬

lized

tives

I portant to the maintenance of the
high standard of living for our

sales

the

in

men

our

firm

tomers,

is

CORPORATE

well, that

customers

our

personnel, that brings in the cus¬

1950. We

since

served

It

ulations

we

that only the top corporate execu¬

capital,

of

as

perfect our operation that

have

itself.

last genera¬

forget

experience, the expert knowledge

of

it is

strain to
we

not

us

distrust. the securities firms. It is the se¬
facts, the curities firm that hires and trains

by
the

needs

Let

in¬

our

that

billion

$1.4

of

regional exchanges. As to whether
there

that

you

prospered,

85,000

has

all the Fed¬

administered

laws

have

expe¬

strive to work under

We

has

260%

can

regulated industry

is

tell

have

regu¬

years

system and

regulatory

not

forces

is

30

State Blue Sky laws,
eral

have

being

have become the most

and intensively

but

We

concept

government

divided

be

Government

is

with

to
we

regulators,

regulated.

the

In

out

self-regulators,

experience

lated.

point

not

are

we

are

the

of

I will later that

as

are

the

in cooperation

would

I

industry.

effect

leaders

responsible

you

in

into

put

reforms

necessary

with

the

the self-regulators need

SEC and

in

which

authority

statutory

in

should

and

tion.

ap¬

concerned. It

dangerous

a

business

that

■

a

The enactment of the

operate

passed

obviously

the industry over the

customers have been well served.
We

standards.

established

not

could

which merits the

program

probation of all

learned ship between Government and
to operate under our business in this country and im¬

live and

dustry

willingness to meet the

or

ma¬

middle

legislation

need

industry those who

to

the

and

early

we

the

Federal

self-regulatory bodies to

from

bar

the

in

under

to

be used by the Commission

may

and

and

government

those years. But we have

which

powers

of

that

remember well

us

1930's that

the

It is necessary

disciplinary

is

today

the prediction of perhaps

provide for effective and flex¬

ible

firm

Many of

jority

cial responsibility which must be

by

question

of the conscientious
in

individuals

to

seems

the integrity

a

important

most

working effectively with govern¬

higher

conduct, experience,

competency, integrity and finan¬
met

the

subject for the IBA and for the

a

very

worse

past and what

industry who last spring moulded

not

most, of the abuses and undesir¬
able

far

ap¬

overlooks

man

the

accomplished.

inescap¬

one

Many,

is to be

is

That

lessons of

the

warn¬

captivity

cooperation becoming

peasement.

To the Securities Industry

SEC

of

well
This is

the

interestf This

particularly unfortunate

light of the fine record of

Bldg.,

Youngstown 1, Ohio

man¬

TELEPHONE

T<
BRANCH OFFICES:

RI

4-4351

Alliance, Salem, Warren, Ohio; Franklin, Sharon, Pa.

The Commercial and Financial Chronicle

Public Utility Securities

Education

Committee, Breakfast Meeting—Milton F. Lewis, A. G. Becker & Co.
Incorporated, New York, Chairman

Thursday, December 26, 1963

.

Meeting—Avery Rockefeller,

Breakfast

Committee,

.

Jr., Dominick

&

Dominick,

York,

New

Chairman

equity of junior partners and of¬

The New President's

cert and

present a united front.

I

effort toward this

Industry

EXCHANGE

Endangered

COLUMBUS, OHIO 43215

their

of

some

glitter when

that

it

of

to

do

whole.

For

first of

example,

the

least

42

IBA

that

this

792

is

from
line

houses

have

INVESTMENT SECURITIES

Ohio

it

eliminates

Building

a

Weigh Each

to

variety of

all

it,

based
In

my

have

in

never

far

20

probably

was

lowest

of

Except

for

clear that in

for

merg¬

are

reasons

profit.

of

business,

any

firm

I

being

its profit outlook

no

the

very

industries,

major

the

commissions,

the

ampng

study

NYSE's

of

overall profit and

no

willing

are

we

pro-

and

adopt

to

those,

which

prove

to

sound,
by

study,

unanimous

be

endorsement

the entire investment industry of

the proposed legislation is

po-

a

tent illustration,
But let

fully,

stress just

me

each

that

care-

as

recommendation

must be weighed from the stand-

point

total

of

results.

practical

cost and

If this is not done, it is

loss survey has been made of our

my

business.

system of providing working capi-

have

I

of the spot

seen

results

the

check which indicates

tal

judgment

industry

for

that in the last decade few, if any,

impaired.

investment firms

government

port
much
of

return

a

5%

as

were

on

after taxes.

comparison, let

it

way

perfectly

am

I infer¬

to

able to

capital

the

me

re-

of

as

By way

call

at-

your

commercial

standpoint

ment,

of

capital

did far better.

As

banks

that

country's

our

will

will

regulation

only raise costs to

an

to

only

can

and

mergers

more

not

impossible

level for most firms; it
lead

sharply

be

Substantially increased

investex-

an

shrinkage in the number of

of

in

-business.

our

several

thousand

The

peo-

secu-

firms—most

ample, the report of the banks in

of them small—and the vast

the

jority

7th

Federal

showed

I

over

does

submit that

leave

reserves

provide

sufficient

velop automation
ices

gation forced these mergers, They

attract

and

an

profit

difficult

funds
and

av-

after taxes

enough
for

solid,

ma-

well-established

and reputable. They are small be-

to

new

they wish to be small since

their

principals

be essentially

consider

a

this

personal

service

ttf'and they prefer to have close

times,
deserv-

definitely not enough to

or

are

cause

of less than 5%
not

after

earnings

10%.

earnestly

erage

District

Reserve

average

taxes of

ring that the current SEC investi¬

adequately increase the

think

this

is

a

healthy thing.

have
ers

as many

as

Our industry must
soundly set

up

deal-'

possible in order to supply

of increased costs and tighter

profit margins.
SEC
and

by

SPECIALIZED—PROMPT

-

Pittsburgh

-

Cleveland

-

Toledo

-

-

Address Loans and Securities

partment.
MO. U. S. FAT. Off.

De¬

of

smaller

dealers

sized

not they will

on

continue

to stay in business.

Underwriters and Distributors of

Profit

SEC

is

period

Squeeze

don't

believe

I

too

of

aware

and

this

based

was

results.

business

they

which

over

control

profit

hit

both volume

that

In

all-time

an

and

had

1961

on

Assets Over




$1

profits
any
was

where

Cleveland

no

year

our

high in

profits, particu¬

are

doubt

realized.

on

driven

the

majority
If

there

of
is

this score, the point

home

Municipal Securities

bro¬

larly in underwriting and distri¬
bution

Corporate

the

that

mainly because the study

squeeze,

kerage

OHIO'S LARGEST BANK

or

ESTABLISHED 1911

friends the banks-

decisions

the

Now,

Teletype: 216 574-9254

Bank Wire: NCLV.

Inc.

1

inroads

important factors af¬

are

Cincinnati

California and West Coast

threatened

medium

whether

Chicago

the

good

our

all these

and

We clear for dealers in

New York

of

requirements,

supervisory

even

fecting

CLEARINGS

-

pressures

rising operating costs, costs of new

DEALERS

SECURITY

The

by the NYSE's

Offices in
Akron

Massillon

Columbus
Fort Wayne,

Elyria
Ind.

I

and

necessary

because of the very apparent rea¬
sons

to

con-

tact with all of their customers.

brought about almost 100%

were

a

pie

get right down

make

to

amount

after
The

carried to net in relation to sales

build

want

and

176

exceptional

rities industry today is composed

good.

I

were

the

merit,

of the

have

the

the

the

seen

absorbed where
was

the

in

changes

which, although conservative from

question

years

a

repeat again that the

many

posed

anxious

previous

business and the returns

me

study and

that

in

These firms

these

of

been

So that I will not be misunder-

stood, let

tention

reasons

you

the

on

has

years

Recommendation

old-

represented

ing, but when

Cleveland, Ohio

10

run

'

names

carrying

been

1%

eventually

fine

many

business for decades.
had

East

ranks

our

de¬

unfortunate

most

a

has

of

I believe

765.

to

since

occurrence,

secu¬

Since the end

membership

from

a

the

since

in the

mergers

1962

as

there have been

year

business.

clined

industry

our

rities

Miller, Inc.

One of

implementation and what

may

at

carefully

are

idealists.

first considerations is the total

our

last

Nevertheless,

facts

of

period of growth for the securities

years.

by the

the

in

4/10ths

than

obvious

com-

largest 25 member firms,

better

ignored
cost

than

of) less

questions and points to

ask blunt

Teletype: 614 759-0412

any

which

begins to

the industry

in

the

of 1962 amounted to an aver-

The

Many of these 176 changes lose
veteran

&

business

for the

Huntington Bank Building

Joseph, Mellen

mission

age

goal.

SWENEY CARTWRIGHT 6- CO.

Telephone: 228-5391

of

year

in

profits

analysis

from page 9

will bend every

STOCK

must

who

firms.

our

Inaugural Address
Continued

MIDWEST

ficers

Must

CORPORATE and MUNICIPAL SECURITIES

MEMBERS

i

Warren

Indianapolis, Ind.

Volume

Mr.

&

Mrs.

6328

.

The Commercial and Financial Chronicle

...

Claude'

D.
Seibert,
Commercial
Chronicle, New York

Financial

the

Number

198

Mr. & Mrs. Thomas W. Masterson III, Underwood, Neuhaus
Co. Incorporated, Hoston; Edward F.
Hoban, McMahon & Hoban, Chicago; Mrs. Geqrge W. Hall (Wm. E. Pollock & Co.), New York;
H. W. Clark, Cherokee Securities Co., Nashville; J. C. Schutz, Bateman, Eichler <fi Co., Los Angeles

&

in

order

supply

to

funds

to

small

to

merchandise, and prop¬

erly distribute to diversified mar¬

underwritings

kets,

large

with the

is

latter, it

opinion; that the

my

examine

should

more

thoroughly the detrimental effect
would

have

customers in
ther

our

inroads

good

their

on

industry by fur¬
securities

the

into

Eaton

Tasks"

Main

these
say

President

Evans

F.

'

highlights in mind,

that I

your

as

you

new

expect to devote

myself in the coming year to two
main tasks:

*

to

work

closely

other

regulatory bodies

BROOKS.

services and pro¬

BROOKS. JOHN

improve

tection

(2)

to

our

if

and

best to

see

remains

can,,

the

The

my

give investors the serv¬
are

effectiveness

unity through
mittee

do

to it that our business

which they

to

all' to

sufficiently profitable to

be able to

ice

above

has

onstrated

the

been

entitled.

of

industry

Liaison Com¬
results

of

its

cooperation with the SEC in the
development of the fair and work¬
able legislative

program

fore

This

Congress.

must

be

R.

be¬

now

united front

&

am

maintained.

fice

and

I

will

will have your

need

and

know

wholehearted

I

sup¬

port.

'

Parke,

Co.,

New

First

CALLAWAY,

'

ERNEST L.
Moroney, Beissner & Co., Houston
BROWN, E. STEPHEN
Barret, Fitch. North & Co., Kansas City
BROWN, HARRY*
Salomon Brothers & Hutzler,
Chicago

CALVERT.

BROWN, WILLIAM P.
Baker. Simonds & Co., Detroit

BRUSH.

America,

GERALD

San

BRYAN.

JOHN

Reynolds

&

BUECHLER.
F.

Blair

Hutton

New

BUDD,
The

&

Dealer,

Cleveland

&

Austih,

Co.,

New

Atlanta

J.

Co.,

St.

Continued

Toronto

Morrow, in Warren County, Ohio,

York

New

is

Journal.

York

New

&

or
or

and

&

New

Co.,

CARROLL.
Lee

>

LEE

city in Ohio. Our 18 offices

provide the personal contact

experienced salesmanship to
the

job the way that's

best for

everyone.

York

51 N.

THE

CARTER.

OHIO

COMPANY

Member of the Midwest Stock

Co., Newark

&

High St.

investments

Exchange

Columbus 15, Ohio

W.

Carroll

W.

that

to any other hamlet, village,

representatives throughout the

state

do

Jr.. WILLIAM G.*
Credito, New York
H. GEORGE
Goodbody & Co., Jacksonville
:

,

HUGH D.
Co., Atlanta

Jr.,

'

Courts

&

CART WRIGHT,

TODD*

Cartwright

Sweney

Columbus

Co.,

&

WILLIAM

CARY.

Mrs.

and

Chicago

Co.,

duPont

I.

...

town

C.

Nuveen

v

B.

CARRISON,

'

,

.

PATRICK

Securities

&

L *
Exchange

Commission,'

Washington
R.

We

B.*

are

pleased to

announce

Casgrain & Co., Montreal
CASSELL,
C.

C.

F.
Cassell &

F.

Chemical

CO.,

INC.

New

Members New York Stock

Co.,

Trust

Wm. J. Mericka & Co., Inc.

W.

JAMES

Lyons

&

Louisville

Co.,

has combined with

New

Our

F.

NEWELL*
Childs & Co., Chicago

'

Bank

CHRISTIE.

Hanna

Building, Cleveland 15, Ohio

Telephone

Teletypes

CHerry 1-5671

216-574-9180

ROBERT

CLAFLIN,

County National Bank Bldg., Painesville




Bldg., Youngstown

&

11.1.

Gardner,

(Fla.)

A.

Louis

St.

WILLIAM H *

Tucker, Anthony & R. L.
CLARK, FORRESTER A.
H. C. Wainwright & Co.,
HAROLD

Cherokee

210 Stambaugh

Winter Haven

E.*

ARTHUR

CHRISTOPHEL.

CLARK.

BRANCH: 206 Lake

Youngstown, and

Commerce, Seattle

Dillon, Read & Co., New York
Reinholdt

216-574-9181

of

Ashtabula,

Canton, Columbus, Dayton, Delaware, Toledo, Warren,

Pittsburgh

Chaplin, McGuiness & Co.,
CHOUINARD, WILLIAM R.
National

330

enlarged operation will include branches at Uni¬

versity Circle and Westgate in Cleveland;

CHILDS, J. MABON

INVESTMENT SECURITIES

firm.

Reid & Co., Cleveland

Fulton,

CHILDS, F.
C.

our

York

C.

R.

of

P.*

York

York

L.

CHAPMAN.

Exchange

that the organization

Charlottesville

New

CHAPMAN. Jr., ALGER B.*
New York Stock Exchange,

Exchange

Associate Members American Stock

Bank

CHANDLER.
W.

Co.,

MELVILLE

CHAMBERLAIN.

&

page

•

Association,

WALTER

CASGRAIN.

MURCH

Louis

on

you want to

>

Banco

Co., New York
&

&

Jones

CARRINGTON.

Jr., J. COLEMAN*
Robinson-Humphrey Company,

Mr.

EDWARD

D.

York

NEIL

Francis

York

York

♦Denotes

Edward

Calvert, San Antonio

&

FRANK

John

EDWIN A.

&

Dobbins

Street

CARR,

K.

Co., Granbery, Marache Inc.

Greenshields

COSTIGAN.

Commission,

JONATHAN C.

CANNELL, PETER B.*
F. Eberstadt & Co.,

York

New

Marache Inc.

Corporation, New York

CAMPBELL. IRVING H.*
Bell. Gouinlock & Co.,

CARR,

F.*

Co.,

D.

Granbery,

York

securities

Clark & Co., Cleveland
CARLSON, J. HOWARD*
Carl M. Loeb, Rhoades & Co., New York
CAROW, Jr.. PHILIP W. \
Harriman Ripley & Co., New York

Francisco

F.*

RICHARD

Company, Chicago
ANDREW

Co.,

Washington

Wall

Brush, Slocumb & Co., San Francisco
Plain

New

&

•

Fahey,

BRYAN, JOHN E.
Cleveland

Inc;

R *

J.

Illinois

Blair

Petersburg

Corporation, New York

''

Bankers

Investment

CARLETON,

K.*

ALAN

The

CORNWALL,

Distributors,

Jr.,

CARBERRY,

Jr.,

of

CORBUS,

Company,

Trust

F.*

Boston

GORDON L.

CALVERT.

Bank

CARL

First

WILLIAM R.
Boston

,

Day,

Boston

W.

Securities

Company,

Nashville

CLARK. JOHN C.
Wachovia

Bank

HAYDEN, MILLER & CO.

Boston

Union Commerce

Building—Cleveland 14, Ohio

>
& Trust Company,

Winston-Salem

CLARK, JOSEPH F.
Municipal Finance
Chicago

Officers

Association

/

Cleveland

COOLEDGE, NORMAN A.
Courts & Co., Atlanta

WELLS

DAVID H.*
First of Michigan Corporation, New York

York

BULFORD. MICHAEL J.*

♦Acceptance speech of Mr. Harris on
assuming office of President of the IBA,
Hollywood, Fla., Dec. 5, 1963.

•

CALDWELL,

Company, Philadelphia
BROWER. HUGH K.
Harris Trust & Savings Bank, Chicago
BROWN,

V.*

H.

J.*
Kraus,

Burge &

Washington

CALLAHAN, THOMAS T.
Finance Magazine, Chicago

J.

&

J.

JULIEN

Jr..

The

BRUCE*

A.

Philadelphia

Hartford

Co.,

Worth

ANTHONY

COHEN. MANUEL F.
Securities & Exchange

York

WILLIAM M.
Schwabacher & Co., New

CAHN,

Wellington

E.

honored to accept this of¬

New York

H.*

FRANK

BROWER.

&

St.

Fort

CAHILL. THOMAS J.
The Chase Manhattan Bank, New York

ROBERT

Dickson

S.

BUELTMAN.

I

Ltd..

Colonial

The

York

New

Bank,

Fidelity-Philadelphia
Philadelphia

York

New

Ball

COOKE.

Co.,

Cady & Co., Columbus

C.
A.

Roberts

BROWNE.

eloquently dem¬

the

by

G.

Schmidt,

BROPHY.

I

adoption of impractical regimen¬
tation

Bullock,

Putnam

investors; and
prevent,

to

Calvin

T.

Co.,

COOK, RICHARD

B.

National

COGGESHALL.

CADY, CHARLES E.*

New York

Co.,

and

SEC
to

the

with

&

WILSON

BRITTEN.

First

COLLINS.

&

Julien Collins & Company, Chicago
CONDON. RAYMOND V.
B. J. Van Ingen & Co., New York

York

New

VINCENT

&

Collings

Phelps, Fenn & Co., New York
BYRNE, WILLIAM D.*
Phelps, Fenn & Co., New York

R.
Co., Chicago

MILTON

BRITTAIN,

Co.,

Dallas

Bank,

Ripley & Co.,

Stearns
GLENN

COCULO,

B.*

C.

EDMUND C.

BYRNE.

ROBERT

Fahnestock

•

C.

Henry, Franc & Co., St. Louis

S.*

Phelps, Fenn & Co., New York
LORING T.
Blyth & Co., New York
&

The

W.

BURDICK

BURTCH.

Nuveen

Bear,
COATS,

JON*
& Co., New York

Burnham

Louis

BRINKER,

COAKLEY.

New York

Co.,

BURNS. Ill, JAMES F.
E. F. Hutton & Co., New

Co.,

&

&

BURNHAM,

BRIGGS,

to

&

II. I.

Burnham

ROBERT A. W.
Hayden, Stone & Co., New York

ORLANDO

York

New

Co.,

LOGAN

J.

EURNHAM.

BRAUNS,

St.

&

.

JOHN

SCOTT*

W.

Harriman

WILLIAM T.*
Bacon, Stevenson & Co., New York
BURKHOLDER. Ill, JAMES R.
Almstedt Brothers, Louisville

Jr., FREDERICK C.
Moseley & Co;, New York

S.

Jr.,

Hutton

E.

III.

National

First

CLUETT,

BURKE,

DANIELS C.
Co., New York

&

BRAUN,

John

(1)

W.

Kindred & Co., Chicago

Barcus,
BRASTED,

Witter

Dean

BURKE,

BRASHLER. RICHARD J.

BREWER,

me

York*

New

WHITNEY
Howard, Boston

S.

&

CLAYTON,

BURKE, JEROME J.

McCourtney-Breckenridge

"Two

With

C.

Co.,

&

Evans

,

New York
C.*
Philadelphia

COLLINGS, Jr.. CLIFFORD

Lane. Space & Co., Atlanta
CLAYTON. CALVIN W.*
Clayton Securities Corporation, Boston

Co., St. Louis
BURDEN, NORMAN E.
Hayden, Miller & Co., Cleveland

BRECKENRIDGE, HUNTER*

business.v

let

BUNN. JOHN W.
Stifel, Nicolaus &

15

page

GEORGE

BRADLEY.

In connection

from

BRADFORD, Jr., JAMES C.
J. C. Bradford & Co., Nashville
BRADLEY,

stitutions.

they

Continued

houses and banking in¬

securities

banks

the

of

Chicago

HARRISON*

Johnson,

growing businesses, and in

order

CLARKE,

FRANCIS X
Dempsey-Tegeler & Co.,

COLEMAN,

CLARK. ROBERT M.*
Blunt Ellis & Simmons,

growing public need for serv¬

ice,

Mr. & Mrs. George B. Wendt, First National
Bank of Chicago

1903

*

OUR SIXTIETH YEAR

★

1963

93

The Commercial and Financial Chronicle

78

Governmental

Securities

Committee,

I

Alvin
"

-

Mr.

&

Breakfast Meeting-—Robert
Cleveland, Chairman

B.

Thomas P. Phelan, Pacific Coast Stock Exchange,
Angeles-San Francisco; Theodore A. Gaskell, Hayden
Miller <fi Co., Cleveland

The National City Bank,

Los

.

Thursday, December 26, 1963

.

Membership Committee, Breakfast Meeting—Murray Ward, E. F. Kutton & Company, Inc.,
Los Angeles, Chairman

George J. Varley, Chase Mcmhattan Bank, New York; John E. Beebe,
Chase Manhattan Bank, New York; Mr. & Mrs. William N. Bannard,
American Securities Corporation, New York

Ruml, Hcdlgarten & Co., New York; Calvin M. Cross,
Hallgarten & Co., New York; Lloyd E. Lubetkin,
Lubetkin, Regan & Kennedy, New York

Mrs.

Blyth,

.

Wilbur

H. Frederking, Fridley & Frederking, Houston; Mrs. S.
Arnspiger; J. S. Davis, Republic National Bank, Dallas;
S. D. Arnspiger, Rowles, Winston & Co., Houston

D.

Mr.

&

Mrs.
Leslie
Douglas,
Folger,
Nolan,
Fleming
<ft
Washington, D. C.; Mr. & Mrs. Arthur S. Friend,
Folger, Nolan, Fleming & Co., Washington, D. C.

Joseph J. Muldowney, Scott & Stringfellow, Richmond, Va.; John
Bunn, Stifel. Nicolaus & Co. Incorporated, St. Louis; Frederic
S. Bocock, Scott & Stringfellow, Richmond

W.

Established 1919

WATLING, LERCHEN & CO

CHARLES A. PARCELLS & CO.
Members:

Corporate and Municipal Securities

Detroit Stock Exchange

Underwriters,
Member: New York Stock
American Stock

''

Midwest Stock Exchange

Distributors and Dealers
in

Exchange, Detroit Stock Exchange,

Exchange, Midwest Stock Exchange.

Corporate and Municipal Issues
639 Penobscot Building

FORD

Ann Arbor
Dearborn




BUILDING,

DETROIT 26,

Jackson

•
•

Lansing

•

•

MICHIGAN

Pontiac

Port Hurpn

•

•

Birmingham
New York

Co.,

DETROIT
Telephone 962-5625

26, MICHIGAN
Bell Teletype 313 222-5036

Representatives—Adrian, Monroe, Port Huron, Mich.

Volume

State

Legislation

1S8

Number

€328

.

.

.

79

Thz Commercial and Financial Chronicle

Committee, Breakfast Meeting—Robert

A.

Podesta,

Walston &

Co., Inc., Chicago,

Chairman

Subcommittee

on

Municipal

Industrial Financing, Luncheon Meeting—Marsom
Co., Boston, Chairman

*

•<

Estabrook

&

|fgf iiiiiiiiii? ipini i

l
"

B. Pratt,

'
„

*

v>

'

>

w

1

»

!

Tilr
%

''

«*•

I
'

V

?
$

I

:

V% <v

x

t

"

;

VL* *

•

"*•

I
Jerome C.

William

Hunsaker, Colonial Distributors, Inc., Boston; Mr. & Mrs.
Hobbs. Funk, Hobbs & Hart, San Antonio;
Ralph L.
DeGroff, Robert Garrett & Sons, Baltimore
'-'L.'
:' V
,'r "

G.

'

Mr.

&

Mrs.

York;

A.

J.

'■

Henry H. Arnhold, Arnhold & S. Bleichroeder, New
H. Wilson Arnold, Arnold & Derbes, New Orleans

Bianchetti, J. A. Hogle & Co., New York; Mr. & Mrs. J. N.
Caldwell, Caldwell, Trimble & Mitchell, New Ycrk




David T. Guernsey, Drexel & Co., New York; Salvador Rodriguez,
William H. Gregory III, Gregory & Sons, New York; Frederick W.
Government Development Bank for Puerto Rico, San Juan, P. R.;
Straus, Dempsey-Tegeler & Co., Inc., Chicago; John F. Egan,
Rafael Pico, Government Development Bank for Puerto Rico,
First California Company, San Francisco
San Juan, P. R.
Vv

& Mrs. Lloyd R. Jammer, Boettcher and Company, Chicago;
Mr. & Mrs. E. F. Dunstan, Paribas Corporation, New York

Mrs. Thomas M. Keresey; Alan W. Titus, First National City Bcmk,
New York; Thomas M. Keresey, Model, Roland <ft Co., New York

Mr.

Arthur

Walter A. Schmidt, Schmidt, Roberts <ft Parke, Philadelphia; Albert
C. Purkiss, Walston & Co., Inc., New York; Samuel L. Varnedoe,
'
Varnedoe, Chisholm £ Co., Savannah

A. Christophel, Reinholdt &
Gardner, St. Louis; John P.
Krause, Reinholdt & Gardner, St. Louis; E. H. Davis, John Nuveen
Co., Chicago; Robert C. Hawley, Harris Trust & Savings Bank,

Chicago

The Commercial and Financial Chronicle

30

Group

Chairmen's

Committee,

Breakfast

L.

Meeting—William
Detroit,

Baker,

Hurley,

Simonds

&

Chairman

"

Co.,
•/■'

Syndicate

Inc.,

.

Meeting—Robert

Breakfast

Committee,

.

Thursday, December 26, 1963

.

A.

Smith,

Powers,

Chairman

that

INVESTMENT

Report of Subcommittee

DEPARTMENT

Co.,

&

Barney

York,

New

;

thereon

interest

the

is

ex¬

empt from Federal income taxes.
Subcommittee

This

emphasizes

that, in its opinion, there is a pos¬

On Municipal

FIRST NATIONAL BANK

sibility

Specialists
bonds

of

in

Industrial Financing

state

and

Minnesota,

and South

municipal

North

Dakota

Dakota, and United States

Continude

from page

24

City in connection with its acqui¬
sition

of land

and

buildings,

ma¬

chinery, equipment, and facilities

Government

bonds; and all Federal

constituting
mill

agencies

and

Harvey

TELETYPE—612 321-1024

from

Incorporated.

Aluminum

which will be paid

Aluminum

Harvey

rolling

facilities

related

The price

include

will

aluminum

an

quisition

the

of

r

1.000

construction

by

cost

City

the

the

of

ac¬

land,

of

acres

of

to

buildings

with

785,000 square feet of floor space,

tion to economic

which

not

or

Underwriters and Distributors
of

operations

up

Company

in

Mutual Funds Shares

all

under the

City)

prior to

1966, and the
-

(with

September
the

with

1,

issue

and

paid

are

Company. The total

the amount

SHAUGHNESSY Qc COMPANY,
Est.

is not to exceed
time to time

the
the

INC.

1938

Escrow
bond

Bond
First

National Bank

proceeds

Building

certain
ST. PAUL

1, MINNESOTA

leased by

be equal to

into

lease

after
lease

a

will

be

certain

plus

payments

directly

paid

in

to

solely
The

Washington

in

CORPORATE &

and

unconditional

of

ment

for

1909

any

Other

DISTRIBUTORS

most

ecution of such

the

Fundamental Considerations

ST.

PAUL

cause. /

bond issues makes it

ent

that

the

quite

issuing

612

361-7967

(Corporate Trading)

Telephone: 224-3303

TELETYPE—




612

321-1358

(Municipal

Telephone:

implications

"Industrial

year

public credit to fi¬

government

nance

industrial

body involved acts only as a con¬

private

duit in the financing

practice

issues
bond

are

issues

and that such
corporate

essentially
except

for

the

fact

which

is

ownership
facilities
certainly

private

enterprise

economic

report

Dept.)

trial

as

interest

conclusion

that

development

impair

tax

business

ventional

the

bond

equities,

relationships
financing

STOCK

EXCHANGE

OTHER

/

COMMODITY

EXCHANGES

2-2111

PIPER, JAFFR AY

indus¬

tends

to

competitive
and

con¬

institutions

& HOP WOOD

ESTABLISHED

1895

MINNEAPOLIS'115 So. Seventh St.

the

of

follows:

conclude

ALL

Com¬

SAINT

"We

339-8931

particular

basic

the

YORK

AND

DIAL FE

published

Intergovernmental Re¬

Of

STOCK

Development

by the Advisory

on

NEW
AND

PRINCIPAL

—

of
a

con¬

trary to the basic concepts of our

'

was

of

permitting the use

of tax-exempt

appar¬

municipal

comprehensive study

Financing,"

Bond

was

TELETYPES—

the

the problem of

Developments

date,

AVENUE SO.

MINNEAPOLIS 2, MINN.

1, MINN.

with

cerned

Analysis of municipal industrial

Com¬

to

lations.
2nd

attack.

an

IBA members are seriously con¬

municipal industrial financing

mission
501

successful pros¬

re¬

of

MUNICIPAL SECURITIES

BLDG.

balances would

power

naturally follow

the

payment
and

tax-exemp¬

De¬

not suspend such pay¬

may

this

ENDICOTT

attack

Rapid deterioration of Fed¬

eral-State

is

cember.

MEMBERS

&

and

committee

this

by those who
tion.

service

debt

for

obligation

make

to

pany

EXCHANGE

The

UNDERWRITERS

20

Trustee

a

issue

abuse will most certainly be used

quired under the lease is absolute

Kalman & Company, Inc
Established

scheduled

about

problem

study this

of

state

principal
from

a

All

used

Company

STOCK

organized

deposit in the Sinking Fund to

payments.

MIDWEST

to

to

exempt from Federal tax¬

required

are

be

MEMBERS

officers

meeting

bonds

the states

primarily for private benefit. This
Comptroller

has
the

of

subdivisions

their

;

State

Levitt

absolutely

abuse of the right of

and

ation, since these bonds are issued

s

York

if

a num¬

pay¬

Fund.

for

,

a

that

will

payments

Reserve

a

such rental
be

states

are

continue to view

IB A members

cessation.

early

conclude

we

essential."

finance

purpose

municipal industrial financing as

principal and interest

requirements
ments

its

safeguards

committee

public

the City to Harvey Alu¬

The

minum.

facility

the

which

paid

were

deductions. Under

agreement,

to

into

ordinance

in

under

created

Fund

essentially

their

improve¬

character.

in

an

of

and

States

finance

to

pay-1

ment by the City
from

and

practice is to continue,

ber

the

of

un¬

of

Therefore,

might hamper the

na¬

practice and the

of this

likelihood

the

over

supervision

other types. Such

over

subdivisions

recognizes

growing

widespread

ture

supervision

S.E.C.'

control

ments

Commission

the

ever,

the

this
pres¬

probably would lead to su¬

efforts

of the City

the bonds which

by the

part

or

Lease

expenses

connection

sale of

the

if

payments made by the

Company
the

also

desires,

so

rental

of

Corporate and Municipal Securities

and

does

recommend. How¬

of

use

bring

may

type of municipal bond

one

S.E.C.

de¬

a

Commission

the

endorse

vice

Arthur

sheet and plate, cost of start¬

num

over

pervision

development and

employment. It is therefore

capacity of 60,000 tons of alumi¬

a

issues.

proportion to its contribu¬

New

for

minimum

of

annual

facilities

such

most

out

<

further

S.E.C.

for

sure

MINNEAPOLIS

that

type of financing

PAUL. FARGO. ROCHESTER'RAPID

CITY. GREAT

FALLS'BILLINGS

sys-

Volume

198

Number

6328

.

.

The Commercial and Financial Chronicle

.

81
l

Federal

Taxation

tern and the

Committee,

Breakfast

Meeting—John R. Haire,
Elizabeth, N. J., Chairman

John

principles of the As¬

sociation.

in

the

form

A.

A

Stroud

was

W.

as

memorandum

industrial

outlining. the

ganizations

on

opposed

municipal

to

financing and

record

a

copy

of

as

or¬

Private

ican

being

of the bro¬

Ownership
Plants?

urged

to

the

oppose

Y.

G.

passage

of

Trust

William F.

also-urged to ask

W.

their Congressmen to support H.R.

ON

,

San

of

subsection

ing,

'industrial

building

any

Y-/^</YY

which

ing,

is

used

or

Congress:
II.

First

R.

development

or

opera¬

public facility

open

term

tion'

or

'tax-exempt

means

commodi¬

any

obliga¬

obligation

Continued

on

page

Session

PROMPT BIDS ON ALL MUNICIPAL ISSUES OF

REPRESENTATIVES
June

4, 1963

MINNESOTA

Mr. Griffin introduced the follow¬

ing bill; which

& Co. Inc.

the

referred to

was

Committee

Ways

on

THE DAKOTAS

and

A

To

Co.

Dudley,
,

'

of,

V. Poole

Gibbons

Geo.

B.

America, N. T. & S. A.

St.

R.

H.

Internal

to

deny

interest

or

mortgages

Co., Inc.

,

on,

Be

Co.

;':Y.'; Y':
&

House

the

United

Congress

Co.

OSCAR BERGMAN —KERM1T SORUM

use

on

industrial plants

tax-exempt obliga¬

enacted

and

Richards

Moulton

Revenue

;Y YY'Y

it

MONTANA

deductions

payments

tions.

Ray

Louis, Mo.
C.

the

1954

financed by

Mercantile Trust

Los

Francisco* Calif.

&

York, N. Y.

Claude

of

AND

BILL

for certain payments for the

Columbus, Ohio

L.

amend

Code

Y

of

by

Allison Williams

,

the

States

MINNEAPOLIS, MINNESOTA

of

of America

assembled,

Company

Senate

Representatives

in

That

Phone: FEderal 3-3475

TWX 612 321-1131

(a)

part IX of subchapter B of chap¬

Angeles, Calif,

ter

1

Code
not

of

the

Internal

Revenue

1954

of

(relating

to

deductible)

is

items

amended

by

adding at the end thereof the fol¬

Dealers in

.

.

lowing

.

"Sec.

the
•

U.S. Government Securities

section:

new

275.

Certain

of,

use

ments

•

Federal

State and

'v

obligation
1963,

or

specialize in Minnesota, Wisconsin, North

1,

by

political

BOND

or

(hereafter

mental unit)

DEPARTMENT
Teletype
321-1005




or

in

or

as

part)

Y'

:

••

quire,

612

construct,
or

no

lowed
accrued

plant,

for
to

a

or

part)

deduction
any
a

%

v

r

I

i"i"riirnjiiiijjrni

■

i■ m

■

v

\'

>

li/ti Mm

■

tY

Y1JY

IYY;
Y/

:
'

>

i
Y

SIOUX FALLS W,

ft

Telephone
'

in

'

FE 3-8141

1

Teletype

CASPER

:

-

,,

m.

;k->

i:-

612-321-1115

Member New York

612-321-1173

other

plant,
Code

to

whole

or

in

referred

'

•

£

as a govern¬

(in

to

authority,

Yv

of

industrial

an

-Y/Y

■■

the

District

improve

loan

a

of

used to acquire,

are

or

whole

Phone
330-8123

Area

"

any

the

collectively

or

construct,

612

or

States,

fiiM'iniT'

by

Co., Inc.

Minneapolis

by any public agency

or

6c

subdivision

instrumentality of

singly

of Minneapolis

Dain

tax-

a

State

any

Columbia

Bell

of

United

foregoing,

National Bank

M.

by

issued" after

by
the

of

any

thereof,

Municipals

or

Northwestern

J.

in¬

If the proceeds

July

Municipal Bonds

and South Dakota and Montana

on,

financed

plants

exempt

possession
We

pay¬

tax-exempt obligations.

Agency Obligations

"(a)
•

interest

mortgages

on

dustrial

for

Payments

or

Stock Exchange

corporation,

entity to

ac¬

improve

(in

an

industrial

shall

amount

be

paid,

governmental

Our

eight offices provide far-reaching distribution in
and diversified

territory of

more

a prosperous

than six million people.

al¬
Billinos

or

unit,

Casper

Duluth

to

"(2) Tax-exempt obligation—
The

Y

6772

an

incidental

or

by the public.

use

manufactur¬

assembling, fabricating,

processing articles

the

to,

means

equipment

or

assembling, fabricat¬

tion of, a

plant—The

plant'

for

to

YY

or

manu¬

processing is merely

or

appurtenance

purposes

(a)—

"(1) /Industrial
term

Y

;

facturing,

pay¬

sucn

Moulton

Ohio

Thomas

Taylor B. Almon

Bank of

Definitions—For

fabricating,

processing), unless

.YIN THE HOUSE OF

Morton

H.

New

■

Boston, Mass.

^

on

is

such manufactur¬

ing, assembling,

by

or

or

APPENDIX A
88th

Morgan

W.

Monroe

Estabrook & Co.

^

thereof

occupancy

to

building
of which

Cleveland, Ohio

Co.

Angeles, Calif.

The

Pratt, Chairman

K. Browne

Y

Prescott & Co.

Dennis E. Murphy

INDUSTRIAL

Inc., Dallas, Tex.

nonpublic mortgagor of such

"(b)

Haven L. Zebold

York, N. Y.

Los

FINANCING

Alan

or

'

City, Mo.

R. H. Moulton & Co.

&

Y '

H. Zahner

Y

H. Morton

Donald

:

McKinney

incidental

the

for

any
use

Means.

Respectfully submitted,

Almon,

plant

plant for interest

Kansas

/

industrial

(including

equipment the

mortgages thereon.

York, N. Y.

New

6772 and to introduce similar leg¬

Marsom B.

Daisies

ties

other

or

ments

Zahner and Co.

Chicago, 111.

William

SUBCOMMITTEE

Jim

nonpublic occupant

VostaL

Victor
;

such

authority,

any

industrial

Baltimore, Md.

C. Leedy, Jr.

Northern

practice.

MUNICIPAL

the

any

Thomas Yeager, III

Blyth & Co., Inc.

ik"

of

use
■

New York, N. Y.

yY'YY ;/\Y

New

islation.

Swick

Baker, Watts & Co.

nancing and to support efforts to

are

P.

,/

Kidder, Peabody & Co.

Co.

repeal existing state laws which
Members

members

York, N. Y.

Edward D. McGrew

are

municipal industrial fi¬

permit this

elected

Orlando, Fla.

state legislation which wOuld

authorize

of

Joseph

Leedy, Wheeler & Alleman, Inc.

at¬

are

Appendix B and C.

as

Members of the Association

new

Loomis

entity by

New

Halsey, Stuart & Co. Inc.

or

corporation,

White, Weld & Co.,

Hauptfleisch

New York, N.

Schanck, Jr.

Theodore

Hatcher

A.

E.

Chicago, 111.

York, N. Y.

Louis

Newly

Bacon, Whipple & Co.

Co., Inc.

York, N. Y.

New

industrial

Ownership of Amer¬

Industrial

tached

Co.

White, Weld & Co.

.

Government

& Trust

Fulkerson, Jr.

B.

Lloyd

chure Do You and Your Company

Support

Neal

New

financing

stands

&

Inc.,
'

Francis

Bank

Bankers Trust

stating in brief the objections to
municipal

Company,

Philadelphia, Pa.

approved

by the Association is attached
Appendix

&

Russell M. Ergood, Jr.

of H.R. 6772 which

introduced

Long

Winston-Salem, N. C.

Legislation
A copy

W.

Clark

Wachovia

IBA Members Urged to Support

and

C.

Hugh

Southdale

Great

Falls

St. Paul

Sioux

Falls

is-

82

The Commercial and Financial Chronicle

NEl

Y0RK-3

PALM

BEACH

.

.

Thursday, December 26, 1963

.

MLA.nhc C=Tv>2

CH1CAG0-3

0Et WQNTE-2

BOSTON

C«

^

G>

♦.

erJffiSBjv

JttSHINCTOii

nrNYGR

ST

N£W 0RI.EANS-?.

MID

Jgljjkp'<A

JUfNNATi

j

auEBtc-2

St.

Bill Zentz (Investment Bankers Association), Washington, D. C.;
Mrs. Francis R. Schanck
(Bacon, Whipple & Co.), Chicago; Mrs. E. Lynn Crossley, Dallas, Texas; Mrs. Robie L. Mitchell
(Mitchell, Pershing, Shetterley & Mitchell), New York; Mrs. David T. Miralia (Kuhn, Loeb & Co.),
New York; Mrs. A. E. Tomasic (Thomas & Company), Pittsburgh; Mrs. Newell S. Knight (First
National Bank), St. Louis; Mrs. William G. Harding (Coffin & Burr), Boston

J-ouis Room—E. William Darmstatter, Stifel, Nicolaus & Co. Incprporated, St. Louis; W. Guy
Redman, A. G. Edwards & Sons, St. Louis; Burdick V. Burtch, Henry, Franc & Co., St. Louis; Kelton
E. White, G. H. Walker & Co., St. Louis; Clarence F. Blewer, Blewer, Glynn <ft Co., St. Louis

Mrs.

The

Report of Subcommittee

state

should

bonds

the

Objections

Tax-exempt

and

issued

be

only

an

abuse of the use of

credit

to

benefit

Industrial Financing
Continued from page 81
sued by any

the

and

normally

governmental unit

interest

which

on

is

wholly exempt from the taxes
imposed by this subtitle."

are

than

B

issued to finance
construction

all

municipal bonds, the
which is exempt

on

present

from

income

Federal

of

tax,

companies

or

panies under

marked

sold to private
a

com¬

LOUIS

Investment

MARKETS

Market

We

can

policy to

you

pin point distribution in this

Midwest

area

1871

,E;

Stock

American Stock Exchange

Exchange

Chicago Board of Trade

St. Louis 2, Mo.

101 North 4th St.
CEntral

Branch

1-7600

Office

—

,

Bon

Direct Private Wire

Durant

Teletype 314 556-0960
Bldg.,

a

interests

units

and

of

or

Pueblo,

'

Colo.

majority

but

to

participate in such financing and
the accompanying profits, because

they believe

and

in

support the

principle of private ownership of
industrial/ plants
such

financing

hold

and

that

undermine

may

American system.

our

tions

on

capital

with

tained

"In

of

scores

revenue

local

from

bonds

Issues

public

tax-exemption,

state

What to Do
It is recommended that the best

solution to the problem would be

Idaho

of

amendment

an

to

the

authorizing

rental

for

payments

is attached and

If

the

were

state-favored

successfully

man¬

bill

the

to

effect

House

June

of

1963

4,

that

was

Underwriters and

New York Stock

Distributors

Exchange

through

its

increasingly

volved

in

tax-free

Listed and

American Stock

Unlisted Securities

Exchange
Midwest Stock

Municipal Bonds

Exchange

to

raise

needed

become

in¬

business, and
terprise

sponsoring,

the

same

An

instead

of

bonds

bill.

free private

our

economy

en¬

be

re¬

Nov.

26,

would

placed by socialism."
Barron's

Magazine

exemption to the interest
and

nance

on

(i)

an

talist}i

Cannot

Moral

Vacuum"

Function

in

commented

a

re¬

any

garding municipal industrial

local
are

a

be

and

vigorous

opposition to

to' deny
on

any

private use—generally
"Finally,
to

the

end

revenue

Telephone CEntral 1-5585

state

Branch Offices

Private

—

Clayton, Missouri

Wire




to

—

Clark, Dodge & Co.,

New York

for

i kiitii

lease-

local

or

vicious

for

practice
use

the

the tax-free

bonds

entice

to

No Fedpral

should
of

of

use

employers.

this

the

upon

improper

law

Belleville, Illinois

used

Administration

raised from

and

run-away

Alton, Illinois

on a

call

we

Congress and the

-

SCHERCK,

revenue

factories

tolerate

public

funds

private purposes."

The

Municipal Finance Officers

Association by resolution

opposes

im¬

type of
many

organizations

attempt to deny such

Today,

being

there

tax

any

municipal bond by

government

(ii)

because

matter

proposal
or

plants

practical

munity to interest
state

"Underwriters and investors

industrial

as

article headed, "Capi¬ would

1962, in

state

on

municipal bonds used to fi¬

purchase arrangement.

FOURTH AND OLIVE

SAINT LOUIS

the

is

build

to

govern¬

critically

purposes.

more

these

from

for

It

acceptable

owners

these

funds

public

and

more

help

on

solution would
regulating and controlling private not be provided by denying taxpromoting,

of state and local bonds should be

ments

6772.

out/and the would be helpful to have many
municipalities, additional Congressmen introduce

low-

the

by

amendment

forced

in order to entice in¬

received

use

mort¬

introduced in

H.R.

as

dustrial run-aways. Long ago the

interest

on

Representatives

Federal Government decided that

Members

Internal

for the

interest payments

or

im¬

new

ob¬

artficially

come

and

being

now

properly used to build
cost plants

Dec.

funds,

cheap."

communities,

tax-free

is

in

to

revenue

terms which, thanks to

on

stated:

Economic

pleas

industrial

enterprise. They displace private

bonds that:

/

AFL-CIO, in its Policy Resolu¬
1961,

Newhard, Cook & Co.

bankers

opportunities

up

Act

would

large

a

investment

of

passed

contrary,

A

state,

can

sjs

that private en¬ gages
on,
industrial plants fi¬
favored, could not nanced by tax-exempt obligations.

so

necessity be

.

Connections with Pueblo branch and

Josephthal & Co., New York, and Francis I. du Pont & Co., Chicago

bonds;

:J:

bonds do violate the rules of free

'

aged, private enterprise would of

revenue

bankers

social¬

obvious

is

industries

industrial fa¬

Investment

Idaho

an

the

private

,.

Court

sis

compete with industries operating

poor

public credit (either

obligation

with

despite specious

thereunder.

industrial fi¬

for private

industrial

Members
York Stock Exchange

after

bargain

declaring unconstitu¬ Revenue Code to deny deductions

terprise, not

profit by underwriting municipal

JONES & CO.

ESTABLISHED

America,

As¬

find it"

have

EDWARD D.

use

general
bonds)

We Specialize In Orders For Banks and Dealers

registered representatives give

of

Bankers

of municipal

cilities.

New

governmental

Supreme

tional

"For

municipal industrial bonds, stated: of,

nancing, concluded that it is

And Invites Your Inquiries

70

by resolution concluded

1960, in

"It

Local Listed And Unlisted Securities

a

in

■

Opposition

~

Department Is Active In All

is

local

The

mortgage arrange¬

study

"If there

of

com¬

'

a

."

.

V■

Law

Government

that it is contrary to the

of

use

,

sociation

Our Trading

sociation

in¬

pro¬

public credit to aid private

panies."
The

ment.

similar

by

.

them,

among

will seek to profit by.

striking

American Bur As¬

Other Comments

leased to private

The

ST.

Local

The

for the direct benefit
are
Historically, the record shows
industry.
'
■
acquisition that the principal 'periods of de¬
fault
in
municipal bonds have
industrial
been

are

shortsighted

ism.

"municipal industrial bonds")
now

Regarding Mu¬
plants which
nicipal Industrial Financing
State and

and

gov¬

to sound public policy for such
public facilities. However, in vides government sponsorship for
companies in competition with local governmental units to issue
some
states, state and municipal
companies
occupying,
privately their obligations to provide in-^
bonds
dustrial plants or factory facilities
(generally referred to as owned plants.

Memorandum

interest

system

recognized

generally

Section of the

is contrary to the

enterprise

interested in making money. Only
the

■

the

of

debt

vide

or

APPENDIX

ownership

dustrial plants

pro¬

for

bonds

municipal

ernmental functions.

tax-exempt

private companies.

Government

free

issued only to

such

use

of

of

type and kind for purposes other howeyer,

to

provide public facilities, and it is

On Municipal

issuance

obligation to acquire property of

local

COMPANY

Volume

James

I.

York;

198

Number

6328

.

.

The Commercial and

.

Financial Chronicle

83

G. Lamar

Crampton, Bank of California, San Francisco; Carl F. Cooke, First Boston
Corporation, New
Crittenden, First National Bank, Bcstcn; Lester H. Empey, Wells Fargo Bank, San
•
Francisco; F. C. Farnsworth, Second District Securities Co., New York

Mr.

&

Mrs.

York;

John

Russell

C.

Fitterer,

M.

Ergood,

.

tax

exemption

by

statutory

amendment would raise constitu¬
tional

questions

trine

of

These
the

problems

proposed

simply
tions

under

reciprocal

deny

to

which take

exempt

which

certain

the

doc¬

avoided

are

bill

the

immunity.

tax

by

would

deduc¬

private corporations

advantage of the tax-

bonds

of

local

govern¬

ments.

Do

You

Your Company
Ownership or Gov¬
Ownership of Amer¬

ernment

Most

citizens

loyally

American free
based

gret

government

sys¬

authorizing municL

"It

is

terprise, not

so

being

of private

state-favored

were
successfully man¬ ing may undermine
aged, private enterprise would of system.

through

out, and the

government
trial

ownership

plants

plants

from

Such

leasing

by

local

governments.

government

usually

are

needed
plants

owned

financed

by

the

sale

of

municipal bonds

on

which is exempt from all pres¬

regulating and controlling private

policy to

use

en¬

general

obligation

re¬

bonds)

free private

our

would

economy

be

placed by socialism."

ent

Federal tax)

are

issued

which normally

Barron's

Magazine

•

Function

Vacuum"

garding

Nov.

on

in

commented

a

re¬

municipal industrial

interested in making money.

shortsighted

however,
striking
ism

.

.

will
a

seek

to

Only

profit

with

are

them,

among

bargain

to

estate

the

by

social¬

diate

exempt

contrary,

specious
industrial

taxes

sewers

plant

and

as

municipal

industrial

arrangement

an

may

quite attractive in imme¬

benefits

to

the

lessee

com¬

tained

on

owned

the

creases

other

ob¬

come

artificially

local

plant

bankers

can

profit

other

accel¬

BUT:

by underwriting municipal indus-

ment

owned

cised

leasing

a

deny
lessee
for

of

our

most important services to

institutions and individuals

by

an

payment
to

a

before

t%e

to rentals

87th

MUNICIPAL

BONDS

of

the

1961)..
You

MERCANTILE

by

Teletype-314-556-0360

the

for

municipality

plant

financed
6368

(H.R.

Congress

con¬
ESTABLISHED 1087

of

on

or

after April

17,
OFFICES

your

company

are

urged to reject proposals for con¬

government

in¬

owned

in

Correspondent 14 Wall Street

Chicago Telephone to Bond Department
Dial 211 Request
RESOURCES




Enterprise 81f70

OVER $600 MILLION

Stock

York

i

'

i ill

<

Exchange

Midwest

the

Stock

Board

.ii-v

American v Stock Exchange
Salt Lake City Stock Exchange

Exchange

of Trade
N.Y. Mercantile
Chicago Mercantile Exchange

'.v

■

'

v;V:<•

/,

CORPORATE & MUNICIPAL

SECURITIES

ARIZONA

ARKANSAS

Exchange

i

UNDERWRITERS

*

DISTRIBUTORS

STATES:

ALABAMA

*

TRADINC MARKETS

the

use

of

tax-exempt

facilities.

help

You

prevent

are

the

also

urged

spread

of

to

mu¬

nicipal industrial financing by

op¬

Bell

Municipal Bond 314 556-0511

which

would

financing.

authorize

such

Teletype—Trading 314 556-0107

314 556-0207

KANSAS
Direct

LOUISIANA
MISSOURI

Co.,

Trading Wires to:

New

York

TEXAS

•

Wm.

M.
Loeb, Rhoades &
Staats & Co., Los Angeles

Carl
R.

Chicago

Dewar,

•
Hayden, Stone &
• Sanders & Co., Dallas • Luce, Thomp¬
Kansas City-* Chiles & Co., Omaha •
Robertson & Pcfncoost, San Antonio • Doherty

&

Albuquerque

•

Doyle

OConnor &

Co.,

NEW YORK

OKLAHOMA

posing the adoption of state laws

*

Telephone—MAin 1-6080

FLORIDA

ILLINOIS

reserving

public credit for financing public
New York

New

Chicago

FOLLOWING

ownership of industrial facilities,
ST. LOUIS 66, MISSOURI

«■

Members

THIRTY-FIVE

companies and to support private

•

\

>a

St, louis 1, M*.-

409 North Eighth St.

/*f

dustrial plants for lease to private

8th and LOCUST

'

>
••

;< -j,

tax-exempt

,'4

structing

;

plant financed out

proceeds

and

CEntral 1-3350

non-public

■

bonds issused

AND

a

Street, St. Louis 2, Mo.

exer¬

proposal applicable

a

on

Exchange

if

a

or

Stock

to

tax-exempt bonds

tained such

U. S. GOVERNMENT, STATE

state

industrial

315 North 4th

proposal

by

York

govern¬

judgment

a

deduction

tax

a

rental

adopts

New

owner¬

financed

plant

business

poor

Congress

One

Members

private

from

tax-exempt bonds will have
pany,

Investments and Financial Service

utilize such

ship of industrial facilities.
The company

Investment

Business Established 1874

by
in¬

pressure

ownership to government

cheap."

Knoop, Auchincloss, Parker & Redpath, New
Miller, Mullaney, Wells & Co., Chicago

I. M. Simon & Co.

Each

and

thereby

shift

a

M.

as

bonds

competitive

arrangement,

Peter

re¬

financed

governments to

A.

Charles

govern¬

a

companies

Mrs.

ad¬

(such

employees.

industrial

revenue

terms which, thanks to

tax-exemption,

its

which leases

pleas to municipal

funds,

&

York;

pay

the

schools)

and

Mr.

quired by the municipally owned

erating

public

the

com¬

must

provide

streets,

an

with

they

to

public facilities

capital

are

real

company

ditional

enterprise. They displace private

plants

from

private

a

because

higher

Municipal bonds issued
industrial

fa¬

municipally

a

(particularly competing

company

."

despite

revenue

is unfair to other taxpayers in
area

bonds do violate the rules of free

bonds. Such
appear

of

tax, to

only to provide public

finance

known

lease

ment

"For

or

industrial

plant,

owned

panies)

"Underwriters and investors

the

public credit (either

for private

The

26,

article headed, "Capi¬

on

facilities.

As¬

cilities.

interest

(the

Bankers

business, and

Cannot

indus¬

of

Investment

of
municipalities, sociation
America,
after
a
would
increasingly become in¬ study of municipal industrial fi¬
volved in promoting, sponsoring,
nancing, concluded that it is poor

talism

accept

The

American

our

its

bonds that:

companies

some

ownership of industrial

industries

■

Yet

accom¬

lieve in and support the principle

the

Moral

of State Socialism.

the

and

favored, could not

private

plants and hold that such financ¬

If

an

form

a

financing

panying profits, because they be¬

that

thereunder.

of

ownership

as

such

compete with industries operating

re¬

they

opportunities to participate in

up

en¬

obvious

1962, in

ownership

plants and

industrial plants

support

enterprise

private

on

industrial

of

Idaho Act

terprise

ican Industrial Plants?

our

an

pal industrial bonds, stated:

state,

C

and

Support

tem

The Supreme Court of Idaho in trial
bonds; but a large majority
1960, in declaring unconstitutional of investment bankers have passed

necessity be forced
APPENDIX

Wertheim & Co., New York; James F. Reilly, Goodbody & Co., New
Jr., Stroud & Company, Incorporated, Philadelphia; William D.
Byrne, Phelps, Fenn & Co., New York

Chicago

son

&

Co.,

Co.,

Co.,

v-

The Commercial and Financial Chronicle

84

which

Report of Public Utility

Arnspiger (Rowles, Winston & Co.), Houston; Mrs. George B. Wendt (First National Bank),
Mrs. John W. de Milhau (Chase Manhattan Bank), New York; Mrs. Russell Siefert (Stern
Co.y, Kansas City, Mo.; Mrs. Robert R. Krumm (W. H. Morton & Co., Inc.), New York;
Mrs. Jerome C. L. Tripp (Tripp & Co., Inc.), New York; Mrs. Joseph B. Wise (Mercantile National
Bank at Dallas), New York; Mrs. Alan Weeden (Weeden & Co.), New York; Mrs. Victor H. Zahner
(Zahner and Company), Kansas City, Mo.
Chicago;
Brothers

the largest of

was

&

its kind

The
cuts"

grated"

buildings

by

heating

producer-

from
of the

avoidance

average

mills per

third

one

Quoddy project,

"cost, of

power

would

mills

ferance

31

page

under
five

become

kilowatt hour, or about
Quoddy cost.

of the

We

Power

Survey

at

duced

state

ered

to

of

River

authority

of

deliv¬

is

York

New

distributing companies at

one-half

approximately

the

cost

Quoddy energy as forecast by

of

the

see

this project, for

oppose

no

nation
in

Interior.

Secretary of the

We

is

pro¬

Lawrence

the St.

of the power

plant
the

electricity

Vermont,

justifiable
should be

invest

asked to

billion-dollar

a

why the

reason

which

project

not economically feasible.

last

is

projects with

survey

Federal

of

Commis¬

power

nationwide

a

supply

the

for

entire country.
We

total

and

nearly

16.5

While

these

the

real

power

is

time

in

ber

of

ings

are on

both

In

we

or

as

In

ies.

the list.

the

expressed

re¬

concern

our

transmission

distributing

October,

compan¬

Tennessee

Gov¬

by

suf¬

in

bills collected in the past nine

in

customers

from

years

Cal¬

if orniai

Arizona and New Mekicb.
total includes $35 million al¬

The

Gas

Gas

Industry in Strong Position;

The
FPC

the

an

FPC

21.

four

down

by

El

posted

and

1955

between

Gas customers were served

1960.

the

under

the

scaling

increases

date

Paso

FPC

higher

pending

rates

Gas

has

late

tion,

rates

by

under

an

terms

annual

14, in

a

speech

Federal
dered

He

only

natural

of

refunds

are

gas

FPC

the

60%

or¬

ultimate

the

said

about

Commission

Power

reaching

Swindler

Chairman

that

the

commission

dered

consumer

will

question

of

the

had

already

$500,000,000 of refunds.

refunded

the

$35,500,000
settlement,

or¬

He

in December 1962 to trace

refunds by the pipeline

com¬

ultimate destination.

Again
the

we

call

attention to

bright future of the

tribution

is

One

companies.

now

in

its

gas

The

dis¬

indus¬

strongest

reason

is

the

engineers

THE MIDWEST FOR

WRITERS
OF

HIOH

AND

AND

UNDER¬

In

di¬

boiler, which makes

a

through

after

or

absorption

an

specific

Fair

savings

of the Rush

Shopping Center at El Paso,

com¬

for the

bright future

"the

call

total

of

what

energy

v

'

>

on-site

for

customers

is

sists

of

five

Village will be using natural
for

its

ments.
and

will

tive

do

the

heating

cooking

the

2,580

electric

and

power

as

This is the largest coopera¬

housing project in the world.
consists

buildings
families

of

twenty
will

that

house

estimated

an

—

14-story
5,840

000

The

feet.

square

Rochdale

of

according

to

House,

officials,

Brooklyn Union
the

Association

stated

Gas
that

"Brooklyn Union Gas Company—
a

straight

gas

distribution utility

electric customer

one

its books—will be

plying

more

indirectly

Warbasse

the

in

new

power

benefit

all

won't

be

matched

by

most

of

the

with

power

$736,283

as

used.

were

power

ings

of

$117,512

a

The

GRADE

attractive

ujfe

Union's

together,
first

MEMBERS

MIDWEST STOCK EXCHANGE

CHICAGO

Steffi Broftefs & Co.

customers will mean

quarters
in

year

of

.

Other "Gas Generated" Power
Facilities

At the Burns Brick Co., Macon,

an

'Georgia,

year

electric

going

gas

a

turbine

electricity, and exhaust
heat

for

utility costs
000

J.

a

are

year.

gas

M.

drying.

generates
gases

estimated at $44,-

-

.

engine installation at the

Field

store

in

Chelmsford,

PURCELL, INC.

Midwest

Stock

Exchange

1009 BALTIMORE

OMAHA

ST. LOUIS

Member

KANSAS CITY, MISSOURI

1012

BALTIMORE AVE.,

KANSAS CITY 5, MISSOURI

DENVER

ALBUQUERQUE




Telephone BAltimore 1-4090

.

Municipal
Trading

Dept.:

Dept.:

fur¬

Savings in

/ EISEN / WAECKERLE /

ADAMS &

a

revenues."

on

service

isn't

dollars

million

a

increased

energy

nearly three

Municipal and Corporate Bonds and Stocks

INVESTMENT BANKERS

a

Brooklyn
total

two

'

PARKER

sav¬

make

choice.

CORPORATE
SECURITIES.

year

net

year

DISTRIBUTORS

MUNICIPAL

a

totally gas operated plant a highly

A

Union

gas.

compared to $853,995 if purchased

utilities.

"Brooklyn

economic

same

operating costs with gas

computed

are

sup¬

.

.

this

nation's

the

from

"Total

nish

that

about half
it will

it is

is,

size of Rochdale—yet

advantages derived by generating

electricity annually

by the beginning of 1964

category

generation

by gas equipment practical. Large

than 65,000,000 kilo¬

watt hours of

largest'

20,000

the American

Journal

is that

project need not rank

'world's

"Taken

October,

is

importance

special

it proves a

other

Jamaica.

in

Village

Warbasse

people.
In

coop¬

dwelling units and a shop¬

ping center of approximately 20,-

and

incineration

drying,

generate

well.

require¬

energy

will

Gas

cooling,

clothes

In

total

con¬

apartment

24-story

containing

buildings
erative

project

This

in

House

Warbasse

Island.

Coney

to make on-site power

gas

power

"Newest of the two all-gas cus¬

tomers

system.

dale

the

king-

generation.

in

Brooklyn Union Gas Co.'s Projects

This

be

to two

Texas, which uses this integrated

indus¬

gas

development

sales

gas

"The

report of 1962, we quoted

our

the

system" for apartment houses, of''

AS

trip

increase

of this segment of the

try

46 YEARS

then

are

either for heating,

with not

your

petitive position.

OVER

turbine

size

of

will

load'

'electric

result

cooler, for air conditioning.

a

panies and the producers to their

try

&&l4M4Uf

produce

The hot exhaust gases

verted into

steam

an

electric' business.

the

sizable

as

Oct.

as

FPC

stated

survey

lowered its wholesale natural gas

to

generator

the

from

powers

ruling.

last said the Commission had initiated

$149,000,000 to date and has

which

into

gas

uses

Now, in New York City, Roch¬
As

T

Tennessee
some

of

electric

The

The gas is burned

turbine,

electricity.

an

October

last

order

from

results

refund

Swindler told the convention that

during

a

a

Federal Power Commission it had

$1,529,770

in

system

everything.

ready refunded by El Paso.

disposition of the other 40%. Mr.

told

"recapture"

tenants

million

$155

refund

to

pro¬

the

Company

Dec.

require businesses to hold over
year-to-year

1962

and

approach¬

Federal

either

posed
gas

had

Gas

before the American Gas Associa¬

1961

our

Transmission

of FPC

may

undertak¬

settlement

starting

1970, when

private

major

with

of

of expiration

ernment

are

electric

one

licenses, generally

ing period
hydro

that

exempt from recapture, a num¬

of 1963 complying

of

bombs

steadily

the

kilo¬

include state

projects

municipal

capac¬

million

second quarter

that

you

installed

billion

refunded

caution

50
major
total cost of $5.7
275

companies. Refunds are still being

Power

undertaking

a

for

issued

some

ity

watts.

of

integrated

;rv.

Natural

Paso

for

gas

use

electricity for light,

and

for

El

there were FPC li¬

covering

of

As

stake.

at

normally

censes,

made to the

is

lot

a

summer,

years,

other

and

hydro

about the natural gas

Transmitters
The

in certain deci¬

marginal
operations previously contracted.

to

ports,

Refunds By Natural Gas

sion

—

National

the

expanding FPC jurisdiction

sions

and
we

properties.

own

in

this

note

There
In

their

on

"uninte-

and air conditioning.

power
new

suppliers.
Continued

industrial

and

Conventional

received

refunds

and

Tennessee Gas from its

buildings

rate

reflect

refunds

new

fice

plants.

to come before the FPC.

ever

Securities Committee

seven

Thursday, December 26, 1963

.

Mrs. S. D.

Mrs. Henry J. Crawford (Squire, Sanders & Dempsey), Cleveland; Mrs. Robert M. Johnson (Dawson,
Nagel, Sherman & Howard), Denver; Mrs. Tom Masterson (Underwood, Neuhaus & Co., Incorporated),
Houston; Mrs. Arnold J. Kocurek (Rauscher, Pierce & Co., Inc.), San Antonio, Texas; Mrs.^ Charles
Cady (Cady & Co.), Columbus, Miss.; Mrs. Walter W. Craigie (F. W. Craigie <6 Co.), Richmond,
Va.; Mrs. Loomis C. Leedy, Jr. (Leedy, Wheeler & Alleman, Inc.), Orlando; Mrs. Fred D. Stone, Jr.
(Marine Trust Co. of Western New York), Buffalo >'
:
;

an

.

.

•I

Teletype
Teletype

816
816

556-0314
556-0490

Volume

198

Number

6328

.

.

The Commercial and Financial Chronicle

.

85

Mrs. D. J. Harris (Bache &

Co.), Chicago; Mrs. Elmer G. Hassman (A. G. Becker & Co. Incorporated),
Chicago; Mrs. Ernest J. Altgelt (Harris Trust <£ Savings Bank), New York; Mrs. George H. C. Green
(Liberty National Bank & Trust Co.), Oklahoma City; Mrs. Donald C. Patterson (Chemical Bank
New York Trust Co.), New York; Mrs. Delmont K. Pfeffer (First National City Bank), New York;
Mrs. Thomas L. Ray (Mercantile Trust Company), St. Louis; Mrs. Benjamin C. Willi®
(Board of Education), Chicago

Mrs. Alan K.

(Bank of America, N. T. & S. A), San Francisco; Mrs. Eugene S. Lee (Valley
Phoenix, Ariz.; Mrs. G. Thomas Yeager III (Baker, Watts & Co.), Baltimore; Mrs.
(Philadelphia National Bank), Philadelphia; Mrs. John M. Maxwell (The Northern
Trust Company), Chicago; Mrs. Orlando S. Brewer (Phelps, Fenn & Co.), New York; Mrs. Monroe
V. Poole (Geo. B. Gibbons & Co.), New York; Mrs. Arthur S. Friend (Folger, Nolan, Fleming & Co.),
Washington, D. C.
National
Robert

Browne

Bank),

Wehrheim

i

s

v

lifSM

Andrew

York;

G.
C.
Sage
II, Lehman
Brothers,
New
Frederick S. Wonham, G. H. Walker & Co.,
New

Massachusetts,

York

expects

/-

to

save

$18,450 annually by generating its
electricity

own

engine

gas

-

Tather

than

power.

In

estimated

heating
This

is

These

natural

driven generator sets

by

addition,
saving

total

figures

purchased

using

is

there

of

one-third
a

with

an

as

gast

of

the

based

cost

of

55

cents

against purchased

of 1.76 cents per

Today

both

the

on

mcf

per

power

costs

kilowatt hour.

the

a

in

a

competitive

are

no

Nearly 1,500,000 homes

are

ex¬

pected to install gas heating this

and

gas

elec¬

end

heating
of

1962

customers;
this

by

figure

tripled.

enues

will

of the

increase

had

1962.

of

is

to be

expected

about

up

5.4% to 107.2 billion therms from
the

billion

101.7

1962.

These

increase
in

ers

therms

in

sold

gains and continuing

reflect

prospects

of

anticipated

an

million

1.1

1963

lights,

an

eco¬

gas

rev¬

the

and

custom¬

increasing

signs and the gas

turbine.

natural gas industry

9%

this year

Total

gas

utility

gas

expenditures
million in

flow

These

The unit volume of natural gas

anticipates that
about

cash

electric

of

York;

F. Morgan, Morgan Stanley & Co.,
Henning Hilliard, J. J. B. Hilliard &

utilities

is' sents about 12% of all the capital
invested in U. S. business.

pipeline

and

amounted to

1962.

For

$1,673

factors have allowed the

investor-oWned
to

market

utility companies

much lesser amount

a

of securities than a few years ago.

The first half of

1963, new money

financing totaled $580,977,000 ver¬
sus

riod

$897,614,000 for the same pe¬
of

a

ago.

year

This trend is

The

expects

industry

to

than triple its investment in

ljiore

elec¬

tric plant by 1980.,

further

To

dependable

provide

electric service, utilities have
terconnected
form

their

The electric

this

maximum savings for

assure

of

to

stimulate

in

many

this

new

construction, and its net

ital

investment

currently

cap¬

suppliers

repre¬

has

increased

Continued

,

on

steadily
page

gas

Providing

a

type

of

service

•

Distributors

Dealers

•

service that is

prac¬

CORPORATE and MUNICIPAL

tically indispensible, the investor-

MUNICIPAL BONDS

utilities

owned
K:5

continued
and

GOVERNMENT BONDS

should

growth

in

revenues

Members

sales

continue

at

promising rate. The growing

AGENCY SECURITIES

ceptance

electrical

of

constructive

the

in

look. An average

will

SECURITIES

record

earnings.

Residential

FEDERAL

Underwriters

of the country.

areas

use

year

as

more

in securities of
,

the Midwest

against

20,000 kwh

an

average

Midwest Stock

Exchange

is

out¬

DIRECT PRIVATE WIRE TO:

all-electric home

than

New York Stock Exchange
American Stock Exchange

Primary Markets

ac¬

heating

overall

a

■

a

'

NEW YORK

AND

•

CHICAGO

•

DALLAS

OTHER IMPORTANT TRADING CENTERS

of

4,300 kwh without heating.
The

(om merce Trust (ompany
Kansas

for

property

■

§

wmmmmm




Deposit Insurance Corporation

II

additions
For
are

billion. With the

Federal

owned

1963

and

Barret, Fitch, North & Co.
INCORPORATED

im¬

aggregate

INVESTMENT BANKERS-BROKERS==—
111 West Tenth St.

KANSAS CITY 5,

MISSOURI

budgeted at $3.5

use

of accelerated

charges,

depreciation

and the 3%

utilities

spend large sums

expenditures
depreciation

Member Federal

-

provements.

City, Missouri

Capital Funds Exceed Fifty-Two IVtillion Dollars

investor

will continue to

the

new

guidelines,

investment credit, the

cus¬

tomers plus continued benefits for
local utility management.
This industry has been spending
The cooperation among power
about $3.4 billion each year for

expected to continue.

utility industry has

heating. They have reduced rates

to

large power pools that will

1963, $1,680

competitiveness

in¬

systems

million has been estimated.

met

New
Son,

Louisville

accelerating.

utilization of gas air conditioning,

,

According to the AGA,
nomic profile

the

billion from the $6.4

$7

some

sales

specific need.

house

to

billion

longer limited

for year, bringing the total to 24,700,store. 000. In 1949 there were 7,443,000

first six months of operation with
a

companies
to

are

This is because the gas

$5,197

saving of $23,647.
are

& Mrs. R. C. Mathews, Trust Company of Georgia, Atlanta; Walter O. Sellers, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, New York; Mrs. William W. Hibberd; Joseph Vostal, Kidder,
Peabody & Co., New York; William W. Hibberd, Trust Company of Georgia, New York

tric industries

struggle.

Charles

Mr.

Bell Teletype

Corporate
Municipal

Telephone

—
—

—

816—556—1422
816—556—1424
GRand 1-8600

Branch

Office

Lawrence, Kans.
Sales Representative
Lebanon, Missouri
Butler, Missouri
—

86

86

Stuart

McCown,
First

Mrs.

First National Bank, Memphis; Early F. Mitchell,
Bank, Memphis;
H. Wilson Arnold,
Arnold & Derbes, New Orleans

Fred

of

Company

Trust

(Marine

Stone

Western

Public Service of New

Maine

Central

Securities Committee
the

interconnections,
er

ties

between

has increased

We

are

owned

electric pow¬
utility systems,

or

utility

of

the

ing.

investor-

companies

in

re¬

On

Edison
rate
per

rapidly.

encouraged by the ag¬

gressiveness

Connecticut

Oct.

12,

reduced

from

1.5

Commonwealth

its

cents

kilowatt hour.

to

1.25

This

fourth time in five years
company

Other

has

cents

is

rate.

have

that

the

that this

this

reduced

companies

heating

space

In the

re-

electric
flected
the

Hampshire,

Power

Company,

Power, and

Light &

Robert

of

(a) the electric util¬

ity industry will
to

parable

with

longer con¬

no

at

expand

the post-war

market

many

rate

a

past

its

com¬

in

growth

period; (b) the elec¬

tric utility

industry is faced with

increased

AVERAGE

threats

are

govern¬

commissions

state

(c) electric

nearing the maxi¬

of return allowable by

rate

mum

slower
in

from

public power;

companies

USAGE

rate

of

with

and

the

growth, expressed

above, will be required to

(a)

reduce

rates

their

to

customers;

(d) that the electric utility indus¬

4500

T.

gressive competition from the gas

heating

and

cration

from

(e)

tors; and

3500

to

as

to

as

as

has now

in their

for

market

space

increasing use

forts to combat the

the

can

panies

no

longer

in

per

creases

former

turn, it will
stimulate the electric industry to

tion

good, for in

is

and

greater
As

do, the In¬

industry has tried to
set

forth

proudly
of June,

bulletin

its

in

over

field.

the eco¬

of

evaluation

an

that

advantage

had

gas

electricity in the residential
Here is the table it pub¬

lished:

Technology)

we are

in

As

Produced

At Point

to
on

commenting solely

(d),

This

the

cost,

table

that

much

the

from

efficient

industry.
The gas

„

*

>

/

industry, having had the

with

0.97.;

indicates,
"One
gas

the

of

electricity

over

distribution

lower

one-eighth,
\

great

for resi¬

V

0.59
1.60

standpoint
electric

which
ment

FRANCISCO
1

of

system

what

an

can

do,

only relatively little further

technical progress and

LOS ANGELES

INVESTMENT-DEPARTMENT

Montgomery Street

entirely within achieve¬

are

whole

and

certainly

achievement by the more

the

companies in

cost reduc¬

the




California's Oldest National Bank

•

More than 200 offices

statewide

•

indus¬

BTU

27%

or

below

$1.60 figure for gas.
evidence

by

be

can

attached

the

company,

"Total

Chart

what

of

efficient, progressive

an

Residential

the end

by

electric

Electric

•

41,000

1963

of

residential

heating

cus¬

tomers and further estimates that

by

approximately

have

added

revenue

by

these

customers amounted to
in

it

1975,

will

500,000 such customers. The

1963

and

shown

in

Added

by

1975

should ap¬

$100,000,000.

by

the

41,000

$8,000,000

Chart

Residential

This

is

"Revenue,

Heating

1955-1975."
The effect

dential usage

on

the average resi¬

is indicated on the

Teletype 213 683-0105

rial mm

R'OrriziN

electric

be reduced to $1.17

can

million

INVESTMENT DEPARTMENT

Telephone MAdison 5-7211

Telephone YUkon 2-8000 • Teletype 415 393-8311

within
efficient

try, competitive heating costs for

Spring Street at Fifth

/

1.17

-

by the electric industry as

CALIFORNIA MUNICIPAL BONDS

SAN

3.47

1

Thus, under these assumptions

proximate

when examined critically,

(d)—the increased and more ag¬

1963

l__

Average

cured

4.95
7.20
per
the

0.59

about

But,

1.61

0.34

starting in 1955 the company se¬
\

y

__

Electricity

0.13

Heating Customers" indicates that

0.34

dential service."

item

2.02

of Use

Residential

is

Natural Gas
__

of Use

Point

electric

Electricity

0.13

__

Average

gressive competition from the gas

1500

^

Natural Gas

At City Gate

of the con¬

(a)

At

done

Cost p/Million BTU

.7.

advantages of

any

only

of

efficiency

At City Gate...

As

(according to Institute of Gas

utility

forth

Elec.

Residential Gas &

Costs of

bulletin

set

pump

figures

electricity

'

price earnings ratios of elec¬

clusions

heat

a

properly cor¬
efficiency of transla¬

the

As Produced

per

share earnings of

fully subscribe to

of

against the gas combus¬

as

heating

60%,

a

1963,
nomic

com¬

not

tion

example of what the gas

an

com¬

too high.

rate of 1 cent per

a

Residential-_

stitute of Gas Technology

.

Committee does

in

coefficient of performance

a

of 2.5

motion.

expect in¬

commons are

be

gas

all-electric home and

an

installation

the

with

effective pro¬

more

tric

the

for

to heat and cool rected for
apartments and office tion, become:
buildings. This increased competi¬

magnitudes, and therefore

While

kwh

of electric energy

the

2500

can

homes,

genr

electric

of

stock

mon

Assuming

electric util¬

making

been

have

ities

genera¬

factors, share owners of the

Association,

temporarily, tion—the cost relationship
the past completely turned against
the home.
recognized the

inroads that certain

-

result of these

a

Miller, Cleveland;

&

believe

we

few years,

space

on-site

gas-fueled

Mellen

Investment Bankers
Washington, D. C.

try faces increased and more ag¬

industry, particularly

Joseph,

Miller,

Girmscheid,

A.

fairly stable prices in

of

regulation and government-

owned

RESIDENTIAL

Thursday, December 26, 1963

in¬
past year, the market for
dustry has launched vigorous ad¬
utility companies has re¬
to a considerable degree vertising campaigns and sales ef¬

students that

ment

.

heating. Accordingly, the gas

attitude

tinue

benefit,

once-exclusive

others.

many

ducing their rates for.space heat¬

85

The number of

years.

Electric .-Power,

American

are

.

Lester

Mrs.

&

.

T. & S. A., San Francisco

N.

>

Report of Public Utility ^
Continued from page

Mr.

York),

New

Buffalo; Mr. & Mrs. Alan K. Browne, Bank of America,

National

cently reduced their heating rates

over

Chronicle

The Commercial and Financial

\

Assets over $3.2 billion

Volume

Mr.

Mrs.

&

apolis;

Chart

Oscar

Number

198

M.

.

.

The Commercial and Financial Chronicle

.

Residential

the

of

Usr

residential

by

usage

customers without

electric

living, with its advantages of

ing totaled 4,450 kwh. Thus, only

fort,

41,000 electric heating

safety,

representing
that

only

customers,

cepted

customers, increased the average

than

In

Another

promotion by this

Power

tion

same

was

aggressive company has been that

MAP

of

dusk-to-dawn

Starting

power

in

1960

installed

states.,

only

lights.

when there

these

of

7,500

was

lights,

this

an

The

1963.

of

average of

year

lights

or

the year 1963 of over

These

results

achieved

fully

by

ies

$43 of revenue per

customer

per

only

electric

recognizing

the

and

operate
be

are

of

Dakota,

aggressive

Wyoming

its

Mrs.

&

Mrs.

Hugh

Shaw,

Mr. William

&

danger

sig¬

changing of the scope
the

of

Passama-

Thomson

Nesbitt,

S. Magnus, Magnus

<ft Co.,■ New York;
& Co., Cincinnati

George L. Perin

Roger T. Gilmartin

Morgan Stanley & Co.

■

The First Boston

5f.

New

New York, N. Y.

Willard R. Hendrix

J. Raymond

Nashville, Tenn.

;

Smith

Weeden & Co.
New

;

Richard W. Jones

Corporation

York, N. Y.

York, N. Y.

Carlton

Wilson

P.

Mitchum, Jones & Templeton,

Robert W. Baird

Incorporated

Incorporated

Los

/

Angeles, Calif.

&

Co.,

Milwaukee, Wis.

in

business,

level,

Federal

nature

We

refunds

IN CALIFORNIA

What

about

developments

these

have upon our economy. It

utmost

of

of

the

by

Commission.

concerned

are

deci¬

recent

the

companies

Power

impact

compan¬

the

and

concerning

transmission

operatives; 14

the

regulatory control at the Fed¬

sions

Ornaha Public Power

concern

can

Specializing in Retail Distribution of

should

to

Corporate Securities

every

taxpayer, citizen and investor.

Minnesota, Iowa, Wis¬

North
and

area-wide

competition and sales promotions

widen

and

many

feasibility

eral

10

transmis¬

and

see

the

ernment

include

electric.

Illinois,

consin,

companies

the

the

local

in

become

to

means

REA, the introduction again of

be

$3,100,000.

can

generation

Mr.

quoddy project, the threat of gov¬

District. The states in which they

total for

a

suppliers

investor-owned

produce

22

operating

sion rural electric

figure has grown to 73,000 by the
end

These

Mrs.

Equitable Securities Corporation

still

areas:

present

include

suppliers

seven

with

organiza¬

planned.; The

members

It is

nals at the Federal level in many

of

Planners

econ¬

competitive

We

ac¬

Mid-Continental

the

1963

Area

10%.

greater

cooperation.

markets.

heating.

gas space

residential usage by more

annual

fully competitive

as

another

more

com¬

will increas¬

be and

can

just

flameless

and

and

omies through

sur¬

ingly become recognized and

of

residential

total

company's

3%

about

cleanliness

service

better

taking

and

meet and

to

Mullaney, Mullaney, Wells & Co., 'Chicago; Mr. &
Altgelt, Harris Trust & Savings Bank, New York

such competition. All-Electric

pass

heat¬

steps

L.

E. J.

industry

ga3

vigorous

age."
Annual

Paul

Allison-Williams Company, Minne¬
Hattier (Hattier & Saniord), New Orleans

Bergman,

Mrs. Gilbert

"Average

6328

Missouri,
Dakota,

Nebraska.
pools

power

Respectfully submitted,

South

mmgkijisT

PUBLIC UTILITIES SECURITIES

Montana,

ESTABLISHED

COMMITTEE

These
Milton

afford

A.

F.

G.

New

Lewis,

Becker

Chairman

&

Russ

Co., Inc.

Telephone

EXbrook

Building,

San

1931

Francisco 4
Bell

2-7484

Teletype 415

393-7625

York, N. Y.

REVENUE ADDED BY RESIDENTIAL HEATING
George W. Anderson

1955-1975

Anderson & Strudwick

Richmond,

1

UN

1

J

1

1

ill;

1

1

1

William

t
v

N. Bannard, III

100

American Securities Corp.

v

■

/

-

Clarence W. Bartow

80

&

Drexel

60

■

O -o

ro

o

.

DOLLARS

Manley,

(MILLIONS)

1

1

1

1

1

1

I

'65

Witter

II

1

1

1

1

1

Redondo

Co.

Member

Lehman Brothers

r—!

/

-

-

II.

Doerge
New York Stock

C.

'

(Est.)

\

Houston,

Texas

300

Fred W.
Thousands

Bache
New

200

Fairman, Jr.
& Co.

„

York, N. Y.
LOS ANGELES: 629 South

Inc.

CORONA DEL MAR

100

'_!

Denver, Colo.

^
1

I—i




1

—i—i—i

'65

'70

G. H. Walker &

i

'75

New

York, N. Y.

.

LAGUNA BEACH
PASADENA

W. Ronald Gill

'60

Spring Street, MAdison 0-1850

Bosworth, Sullivan & Company,

iL

'

*56

Exchange

Exchange (Assocs.) ■ Pacific Coast Stock Exchange

Pharr Duson

George B. Fisher

/
y

.

41.1000

American Stock

Rotan, Mosle & Co.

Jr
.

Ohio

.

/

x

Cleveland,

400

/
/
.

Pacific Coast Stock Exchange

Members:

'

/
,

Long Beach

N. Y.

Hayden, Miller & Co.

4

Pasadena

Ohio

500

'

Beach

'

Ira Daly

Carl

.....

TWX-683-01I7

Prescott & Co.

'75

New York,
1

&

New York, N. Y.

Richard W. Cook

II

'70

ELECTRIC HEATING CUSTOMERS
1

'

Brown

Dean

20

Cleveland,

r—

Spring Street, Los Angeles 13,. Calif.

X

TOTAL RESIDENTIAL

—i—i

453 So.

&

MAdison 7-2291

Carl C.

_y

'60

McDonald

Detroit, Mich.

rn St.)

./

'55

Bennett,

Co.
40

;

.>'■

Benton, Jr.

i

>

__o

Investment Securities

"

York, N. Y.

Robert A.

N

-

«•

Co.

1

New

-Vh 00 o

tfesHMaia j, ®l3?]fal<S5ip & C©<

New York, N. Y.

-

1

Va.

£

Co.

COVINA
LONG BEACH
VAN NUYS

The Commercial and Financial Chronicle

88

Mr.

&

Willard

Mrs.

&

".'hrY,
Jr

..

from

.

East

Middle

the

in

0%.

approximate y
This

duce

ere

y

s an la

su

Po l ica

evidence

further

is

contracts to consuming countries,

.

,,

.

Geo ogica

that

y.i

Mr.

Bros. & Co.,

&

Mrs.

Miles
,

Pelikan, John
New York

is

ques-

no

m

.g

^

.

appaen

is

Free Foreign areas. And Ameri-

reduction

Nuveen

&

Co.,

expected

continue to

a

50.75^000

Russia will sell mucn 01 us sur-

Russian

that

ex-

Wegtem w;orld wm
at

increase

barrels

the

feut

year>

.

per

total

rate

a

cf

about 40%

despite

capital

the

de-

re-

terioration of prices.

cent

Qil

however, that the growth of earn-

Co.

gtudy

by

^

(New Jersey)

pact

of

gtm

wQuld

expenditures,

reduced

corporate spending abroad. A

each

day

States

United

of all

and

income
cost

as

increased

programs,

ing on a price basis for oil supply can oil companies account for efficiency

and, tion that the Russians can pro-^ports to ^

Libya about five cents per barre
or

.

^

Russell E. S'efert. Stern
Kansas City, Mo.

been more aggressive in compet-

':r

Russian Oil
.

Mrs.

Thursday, December 26, 1963

be satisfied by Russian crude, in the United States, and the re- reported increased
anci western oil.companies have maining 46%, or $54.9 billion in through such measures

j

committee

39

,

&

.

on

■;

'
reduce producing

,,

Mr.

.

voluntarily set maximum limits sets at the end of 1962 amounted vented net income from growing
percentage of internal to $119.2 billion, of which some in line with increases in consumpenergy requirements allowed to $64.3 billion, or 54%, was located tion. All of the companies have

1

• j

page

& Leach,

Birmingham

j

t3Q hPPUritlGS
^

that this would

profits

Mrs. Henry S. Lynn, Sterne, Agee

1\ 3, ull T*3;l

'f.;

.

Continued
,

"XT

&

^

I

...

/\*l
I 11 I

P
AT

i

r

Mr.

DeGroot, Bateman, Eichler
Los Angeles

G.

Co.,

.

tions

on

standard

on

the net im-

oil

international

opera-

the United States balance

ings

It is likely,

the next few years for

over

most companies engaged in inter-

oil

national

will

largely

come

Plus -in tne western woria in constitute less than 3% of Free of payments demonstrates that from volumetric growth and inments may be altered when eco- amoun s
a appear 1 e y 0 e w0rld demand each year. This the
industry
has
provided
a creased efficiency—not improved
nomic and political realities be- nommal compared witn over-aii should allow private international steady inflow of funds into the prices for products or crude oil.
come
different
from
original *ree
.v
^ YT
^ companies to provide the remain- United States in recent years.
Thus, all of the major intercircumstances
under
which
the
Wl1^ovide,paaiy neeaea roreign ing 1125>ooo b/d of additional Table V outlines the impact of national oil enterprises should
contracts were written. The plain £*
world have1 increased from year^y
supplies at a reasonable United States oil company for- continue to report increased earnwith

contracts

sovereign govern-

„

fact

is

that

capital

profits

prolific

in

producing

the

and

it

United
to

i<a

rapidly,

continues

payments
are

are

outlarge,

that

as

.

..

countries
more

areas

States

evneefpd

he

..

production

■

companies

producing

side

invested

on

by

to

to

likely

increase

the
to

host

expand

rapidly than' profits to the
.

.

producing

companies.
,

.

abo^t

eign operations on the balance of ings over the next few years,
payments since 1958.
Many of the formerly domestic
at about 740,000 b/d this year, an
Capital expenditures for petroThe seven major international oil enterprises which have found
increase of approximately 10%.
leum facilities in the Free World oil enterprises had total indicated oil abroad in significant QuantiRussian crude oil has often had' approximated
$11.1 : billion
in cash earnings of about $5.2 billion ties and provided marketing facilquality shortcomings and seldom 1962, 7%
above the estimated *n 1962.
Their aggregate capital lties. should also be able to post
lived up to thg specificati0ns of outlay of $10.4
billion in 1961. expenditures approximated $4.1 gains in net income during this
^be
buyer. -' Furthermore, it has Capital expenditures outside the billion.
Dividends totalled ap- period.
/With the international
upon occasion damaged refineries United
States amounted to $5.4 proximately $1.5 billion so that petroleum
industry generating
and
delivery dates seem to be billion in 1962, or nearly half the payments for capital expenditures la^Se^amounts1 °
^as ^nh^nnte
1955 to 67q

100 000 b/d in

.

profit.

_

Financial

estimated

000 b/d in 1962 and are

.

meaningless.

„r

nations

Many

u

2.

1'

4.

n

<>.

j

Free World total. Gross fixed as-

have

-




and dividends exceeded the cash
earnings of the
al

z

companies

geven

by

^
'

was

'

accounted

for, in large part,

1||

I

\

,

.

//'V':/
"•V"':
' /j

oc1962, at which

"

;i

'

\

;

'

111

if. S. Government and
/

,

>

'

Federal Agency

| |

||§§

Securities

/

,

Dealers
.

_#./

j

r

serving corporations, ;

-

•

W

'

/,

institutions and individuals.

\

los angeles headquarters

600 South

I ^

financing needed for large acquisitions of property or stock.
Gains in oil
stantial

in

fj|

that they

are

will con-

•.

Yet

future.

the

appearance

of

V

san francisco headquarters
ont9omery treet

.

tional

of oil for the Free World market

,lllt

scene

with

regulatory

have

practices

to competitive

contributed

price

which

"

'

have

'

^
,

.

^

.

of
out

order
.

,,

.

.

wlthin the lndustry'

This determined effort has had its
the

rate

pre-

case

backlog and

more

a

operation

efficient

and

id

,

,

the regulatory process,

of
'

,

but the

side effects of many FPC decisions and actions have been

;

■

-

.

a

less

i'

TABLE V

,'

'

ill

•

...

,

.

of chaos

abundance

an

\

Teletype: 415 393-9545

|!£,.i|

<

'

EXbrook 7-2022

philosophy

to

"bringing

K | new companies on the interna-

405

the

dedicated

have been subyears and the

Teletype: 213 683-0544 and 213 683-0546
'
^

securities during the

gas

tinue to be so in the foreseeable salutary effects on such things as

,
-

use

recent

MAdison 4-0111
...

p ,

Spring Street

natural

vide funds for necessary capital power and control over the na¬
expenditures over the next few tural gas industry.
The present
years and still pay increasing five commissioners, all appointed
dividends
excluding,
however, by President Kennedy, seem to be

indications

||1

dominant factor affecting

The

WM $480 million was expended. It is past year has been the increasing
lllf believed the seven major inter- tendency of the Federal Power
111 national oil companies can pro- Commission to reach for more

Munlclbal
.

Natural Gas Industry

in the Gulf of Mexico which
curred in March of

'

mil-

$400

some

by the sizable offshore lease sale

I

/

reasonable to anticipate

dividends in the foreseeable future and little in the way

lion. This deficit in the cash flow of public financing.

v

|

appears

internation-- greater

International Flow of Funds

-

U. S. Petroleum Industry ^

UNITED

CALIFORNIA

81

Millions of Dollars

is

,

BANK
Remitted Profits
MEMBER

FEDERAL

DEPOSIT

INSURANCE

,

,

1.169

/

1, 100

1, 143

1,303

1

1, 578

CORPORATION

Capital Equipment and
Other
Funds

Net Oil

Imports

Investments,
Funds

743

727

752

815

923

1,912

1, 827

1,895

2,118

2, 501

1,325

Elxports

Received

Etc.

Disbursed

Net Inflow

1,055

1,064

1,198

649

511

455

747

538

1,727

1, 566

1,945

1,863

185

261

173

638

1,078
-

>•

1,519'

376

»

•

-

I"

•

Volume

Jerome
Miles

C.

A.

198

Number

6328

.

.

L. Tripp, Tripp <fi Co., Inc., New York;
Watkins, Stubbs, Watkins <ft Lombardo,
Birmingham

Frederick

C.

York;

attractive

investment

outlook

for

industry.

gas

(1)

sion
Rate

Since

pricing
has

Case

Backlog

policy

in

1960,

ahead

moved

changing

over

producers

on

<

the

announcing

FPC

regulating

individual util¬

an

ity-type, return-on-rate-base
proach to
and

ap¬

overall basis by

an

geo¬

After complicated

logical areas.

lengthy hearings, the first of

the

rate

area

Permian
last

proceedings,

Basing

summer

and

final

a

the

concluded

was

order

is

expected in mid-1964. Testimony
the

in

second

rate proceed¬

area

ing, Southern Louisiana, is to be
filed

by Dec. 3, 1963 with actual

hearings

to

start

March

on

17,

1964.
In May of this year, the Supreme

its

natural

has

field;

(2)

grant

control

direct

the

the

nat¬

grant con¬
sales

industrial

by pipelines; and
trol

power

over

in

industry; (3)

over

author¬

same

electric

securities

of

ural gas

trol

in the

gas

(4)

these FPC actions throw an

years,

additional

cloud

ment outlook and

tend

to

over

invest¬

certainly do not

encourage

ments in

the

new

commit¬

pipeline equities.

A

number

of

questions

important

remain

tant

of

pipeline
will be

price

the

Two of

more

impor¬

fits associated with liberalized de¬

preciation. These questions, when
production settled, will help clear the air by
regulated under the area removing some of the uncertain¬
these

-

concept

(1)

are:

owned

utility-type,

Other Regulatory Questions

latory

solved.

whether

gas

or

subject

to

the

return-on-rate-base

regu¬

associated

with

The Commission has denied the

ment to be accorded the tax bene¬

Continued

on

grant con¬

imports and exports of

over

natural gas.
In

attempting

its

enlarge

to

sphere of influence, the Commis¬
sion

has

caused

jurisdictional

squabbles with other government
agencies
Justice

The

departments.

and

Department is opposed to
interest

the

FPC's

the

Natural

natural

Gas

amending

in

Act

pipelines

gas

exempt

to

the

from

in

5-to-4

a

the FPC's

blessing to
establish

the

questions
review in

leum

gave

efforts

prices. Although

area

for

decision,

before
the

Court

the

Phillips Petro¬

Company rate case did not
the

involve

legality

the

of

area

Commission

the

stock

on

seeking to wrest con¬
holding

over

company

sys¬

It has asked

the SEC.

tems from

the

Furthermore,

control. '

the FPC is
trol

authority to rule

acquisitions of companies

under /its

Admiinstration

present

to

SEC to the FPC

switch from the

pricing concept as such, the Court the power to administer the broad
indicated
its
approval
of
the regulatory controls over electric
FPC's attempt to

solution

to

that they

stated

find

workable

a

producer pricing and

"share the Com¬

mission's hopes that the area

approach

rate

to be the ul¬

may prove

timate solution."

various

streamline

of

place

dened

an

on

stringent
overbur¬

will
tend

the

lower

of these companies

growth

negotiated

set¬

commission's policies may

been

encouraged

and

many

in

pipelines

uation if that

has

years

1963, the pipeline rate

backlog

case

from

down

the

and

1962,
seven

years.

rate

ducer

decision

seeking

developed

STATE AND

over

and is actively

expansion—the FPC

new

million,

itself.

The Commission's

itures

have

$138

increased

expend¬

MUNICIPAL BONDS

$8,-

from

backlog in 851,000 in fiscal 1962 to a budget
Independent
pro¬ of $12,742,000 in fiscal 1964, a 44%
lowest

applications

were

past few

million in July,

was

$277

impede

their efforts to
expand, there is one growth sit¬

the

the

1,

pending

still high (2,246) al¬

increase in two years.

it would be

more

vestors if this growth

year.

more

of-

We are sure

Specializing in General Obligations of the State of

satisfying to in¬

though down about 10% from last
/

of Service that began with the West

the

Although

prospects.

to 10 years on

future increases. As

A Tradition

hamper their future

to

have contained moratoriums of up

of July

This, in
investment

pipeline industry.

attractiveness
and

more

already

even

rate

Commission

the

efforts, if successful,

These FPC

will

producer

and

have

utilities under the juris¬
Hold¬

ing Company Act of 1935.

to turn,

administrative

its

Voluntary

tlements

by

changes

and reduce the backlog

pipeline

cases.

instituted

has

procedural

processes

gas

diction of the Public Utility

controls

Commission

The

and

record were

California and its political subdivisions

evident in the pipeline com-/

panies themselves rather than in
Reach

The

Chairman

months

Authority

More

Swidler

of

criticized

been

has

for

FPC

the

in

industry officials for his attempts
to extend the

Commission's

regu¬

agency

regu¬

lating them.

recent

by both government and

administrative

the

uncertainties

Additional
been

cast

over

pipeline

have

equities

by the FPC's notification to eleven

companies that their rates are to

latory controls into new areas. Mr.

be

investigated under Section 5A

testi¬

of

the

Swidler stated in his initial

before Congress that he in¬
tended to make the FPC a more
mony

and
efforts in this direction will

active
his

and

doubtless

vigorous

continue.

agency

they

four

that




Act

for

the

determining

WELLS FARGO BANK
464

CALIFORNIA STREET, SAN

FRANCISCO 20, CALIFORNIA

•

TELEPHONE: EXBR0OK 6-0123

Section 5A proceedings

have actually
two

bills which will broaden its regu¬

are

Gas

whether
earning excessive rates

of

of return.

The FPC has

drafted and sent to Congress

Natural

purpose

been started against

companies. In view of the fact
pipeline

stocks

have

had

a

rather lackluster record in recent

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

pipeline

stocks.

approach, and (2) the rate treat¬

unre¬

ties

Clayton Antitrust Act and to grant

Court

to

ity/it

in issuance

gradually

from

investigate

operations with the

area

the

to

the Commis¬

empower

Howard C. Johnson, International Bank, New York;
Andrew N. Overby, First Boston Corporation,
V
New York

Paul Wisman, Francis I. du Pont <ft Co., New York;
Edward J. Kelly, Carl M. Loeb, Rhoades & Co.,
New York

Co., New
Loeb,

Rhoades <£ Co., New York

latory authority in the following
ways:

89

Financial Chronicle

Braun, F. S. Moseley &
Howard Carlson, Carl M.

J.

^

the

'

■

The Commercial and

.

•

TELEX: 415 393 7631

page

90

90

The Commercial and Financial Chronicle

,

.

Thursday, December 26, 1963

.

$$tll

S

iff
1

1
'

i

}

rjf

4

L

y

*

P#

-:

*

'i%?m

Iff

i

$

ti
$

llr
W

Mrs.

W.

G.

B.

Carrington; Dr. Rafael Pico, Government Development
Bank, San Juan, Puerto Rico; Mrs. Delmont K. Pfeffer (First
National City Bank, New York; W. G. Carrington,
Banco Credito,
New York

P.

Safe

Report of Oil, Natural

companies

pand their lines to
kets

Gas Securities Committee

as

ket

saturation

well

attempts

pipeline

of

basis

year-by-year
traditional gas
The

on

through

the

a

on

the

vent

in the
of

were

public interest

increase

to

have

to

the

meet

in

steadily

reserve-production

the

oil

How¬

demand
annual

an

5%-6%,

methods

as

supplies.

will

new

the

side,

rate

of

excess

coal

and

sales

gas

growth

rate well in

a

(3%-4%)

ratio.

pected

would have guaranteed the pipe¬

dle

stipulated quantities of gas

fixed prices

1950's.

The

Association

for periods of up

through the
in

Conditions

Economic

the

last

In

in

the

field

trying to find

still

situation

rior

dis¬

we

This

years

shown

at

about

should
crease

The

av¬

over

cents/MCF

15.5

register
the

little
next

result has been

exploratory

and

few

rate/

years:

of

to

Since

been

in

Vi.

at

pipelines

centers

to
of

all

the

reserves

with

proved

U.

rather

S.

cubic feet

of 274 trillion

new

are

now

popu¬

nation,

from the

year,

be

the

primarily

looping of existing lines

than

the

facilities.

for

is

ex¬

from

in¬

and

the

cash

(86%)

the

sale

The

are

ex¬

mainly from debt

come

and the balance

of

construction

On the other

of

hand,

prevailing

natural
the

and

last

industry

distribution

ture

gent

of

the

vestment

of

outlook

The economic

together
other

with

fuels,

stable

in

Canada

continual

pected

1957.

phases

the

of

show, signs

expansion, and the

result

for

1963

is

stable

15-20%

amount
market.

8%

increase,
a

day

about

or

more

the

pro¬

duction for 1962. Drilling has be-

to

show

signs

of

drilling

year

comparison

with

down

was

1962.

the

Gas

in

Additions

y-vy'.

up

over

the

supplying

half this

domestic

Looping of two principal

stimulus

for

expenditures of

$100 million in this phase of

over

revival,

a

with

pipelines in Canada will provide

62,000

than the

industry, which will at legist
the

liquids

outlay

of

oil

of

and

increased

last

year.

natural

gas

about

by

700

y 7.

table vi

Utility and Pipeline Construction Expenditures

1959-1962

1963-1966

Actual

Estimated

/

Millions of'Dolla

Distribution

2, 734

Transmission

2,809

Production and

Increase
7

Amount

r S

%

•

y - -

•297

733

General

996
393

10. 9

(524)

(18.7)

263

35. 9

147

59.8

429

43

11. 1

7,134

226

3. 3

,,

'

386

and pipeline

6, 908

Industry

American Gas Association,

Source:

1963 Gas Facts.

encourage

will

mean

companies

costs

Total

to

program

of

pipelines.

can

gas

pur¬
UNDERWRITERS

For these

•

DISTRIBUTOR^

•

BROKERS

continue to favor the

we

companies

for

growth

the

over

of

capital.

hand, pipeline stocks

still regarded

by

us as

holdings

*

*

Specializing in West Coast Securities

invest¬

and

many

interesting prospects for di¬
versification into related fields.

The

MITCHUM, JONES & TEMPLET0N
INCORPORATED

*

Canadian

Policy

with
about
year.
a

3,031

2,285

7,

246

Storage

',

City: 14530 Roscoe Blvd.—EMpire 4-5795

about

although less than

increase, should be

the

and

On the other

3-4196

last year's

gas

oil and natural

Exchange

S. Euclid Ave.—SYcamore

of natural gas,

of

satisfactory achievement. Produc¬
tion of crude

with last

compared

greater prospec¬
growth rate for distribution

tive

683-0166

of
ex¬

one

4V2%

up

year's, which is the largest in¬
crease of the last four years. Sales

in¬

'

settlements

distribution
on

from

five years.

or

backlog and

case

goal

in 1963




dustry

in

all

relatively Underground Storage

mean

reduce the producer
rate

field

on

supplies,

prices at the wellhead

gas

duction

Panorama

67%

strin¬

Industry

;

Summary

70

be

the

Almost

these equi¬

Moreover, the FPC's

S. SPRING—LOS ANGELES—MAdison 7-1041

Pasadena:

from

interstate

excess

Canadian Oil

213

ex¬

gas

present attractive yields together

TELETYPE

petroleum

tendency

with

,

of

demonstrating

cellent progress and will probably

com¬

competition

will

ment-grade

629

is

Reserves

more

for

to

day,

a

mately 80%, a substantial change

the

common

the

the next four

over

are

Stock

products

double

that

capacity

barrels

Consumption

although during the first half of

pressure

prices, caused by

distribution

Coast

approxi¬

refining

years.

pipelines

Pacific

of

about

additional cost of $60 mil¬

an

lion.

in¬

ties less attractive than in former

systems,

Member

level

a

has

pipeline companies make the in¬

reasons

Bingham Walter s Hurry. Inc.

States,

self-sufficiency
to

at

of

day in 1963 will

a

million

one

gun

natural

increasingly

chased from

SECURITIES

Canada's

United

capacity

total

over

to

namely

FPC's

regulation

count

of

the

better investment

The

towards

bring

in

transmission

growth

industry.

domestic marketing
the

refining

50,000 barrels

us

company

stocks present a

than

to

of

use

New York; Lloyd B.
James S. Abrams,
E.
Tomasic,

Company, Pittsburgh

stated

lead
as

report,

and

within

conclusion

year's

vehicle

regulatory

conditions

gas

same

to

creased

an

economic

twofold plan,

a

increased

of Ottawa and expansion of

barrels

that

DISTRIBUTORS

Canadian oil,
west

Investment Outlook
The

of

&

liquids is expected to show about

preferred

equity.

voluntary

INVESTMENT

financed

generated

common

slower

large

future growth will come

last

systems

have

about

as

table

growth

a

The total supply
same

as

facilities

expand

drilling activity.

the

few

The

increasing

picture

remains

ex¬

next

distribution

extended

lation

development

Table

the

period, 47%

capital requirements

from

By virtue

panies for participation in the fu¬

;

facilities,

transmission

expected

in¬

decline

a

while

and

no

or

in

prospects

wellhead price has leveled

erage
off

The

the

over

illustrates

five years.

\

;

construction

distribution

next

or

supe¬

will be channeled primarily

into

is

and

of this

;

industry

penditures

long-

oversupply

prevails

fuel.

likely to continue for at least the
four

the

which is im¬

1960's,

characteristics

Gas

supplies of gas

excess

markets.

term

itive

report

year's

the

Gas

that

pressive testimony to the compet¬

Industry

cussed

American

estimates

present growth rate will continue

to 30 years.

estimated

balance from outside capital.
new

of

expansion in the early and mid¬

at

to

ternally

though below the rate of gas sales

lines

mar¬

present

(2%), al¬

of the contracts denied

ever, some

their

oil.

Thomas

including/ the

exports

1963-1966

securities

On

acquiring gas

adequate for

are

in

expenditures

current

show

were

reserves

tion

pected to

not

and

production.

1962

on

future

efforts to circum¬

control

FPC

20-year sup¬

a

increase the

as

ex¬

$7.1 billion of construc¬

rising demand and to maintain the

this

subject have charged that in-place
purchases

1963,

present, but drilling for

reserves

the

purchase contract.

rulings handed down

based

Proved

in-place

bulk basis rather than

a

ply

companies

to purchase gas reserves
on

of Jan. 1,

will

serve new mar¬

territories.
Of the

as

A. Morton, Blue List
Publishing Co.,
Hatcher, White, Weld & Co., New York;
Allen
&
Company, New York; A.

Bankers

distribution

Continued from page 89

Roald

Lester, Lester, Ryons & Co., Los Angeles; Avery Rockefeller,
& Dominick, New York; Erwin W. Boehmler, Investment
Association, Washington, D. C.; G. R. Taylor, Mercantile
Deposit & Trust Co., Baltimore; (Mr. Taylor and Mr. Lester
were
winners
of
the
IBA
Essay Contest)

Dominick

of

of

a

seems

minimum
barrels

expected

792,000 -barrels
This

is

Established 1920

/-

SOUTH

SPRING

Oil

STREET

TELEPHONE:

•

yy/

y

■
•

LOS

ANGELES

625-351 1

pro¬

daily

MEMBER

close to fulfillment

production

three-year

510

National

800,000

■■:

'

a

to

the culmination
program

be

New York Stock

Exchange

•

American Stock Exchange

Pacific Coast Stock Exchange

day this
of

to increase

Canada's self-sufficiency in crude

DIRECT

WIRE

TO

NEW

YORK

AND

ALL

OFFICES

>

Volume

198

Number

6328

The Commercial and Financial Chronicle

...

Mr.

Mr. & Mrs. David J. Harris, Bache dfc Co., Chicago; Andrew M.
Baird, A. G. Becker & Co., Incorporated, Chicago; Arthur W. .Curtis,
A. G. Becker & Co., Incorporated, Chicago

million barrels in 1962 to

record

a

of

crease

high of about 5.2 billion barrels.

British

However, most

from

reserves

came

existing
of

fields

known

of

National

Oil

Canadian

increase

oil.

berta

is

producers

in

barrels

The

Province

expected

to

Alberta

a

per¬

still

into
in

United

the

1963

the

expected

The

about

to

in¬

in

1961

191,800

about

contribute

rise to

and

Canadian
Total

552,000

bar¬

Canadian pro¬
and

barrels

1962

was

daily,

and

two-thirds of this

was

due

increased exports of crude oil
VD

a

barrels, the second lowest in

the

history

I960

1959

1961

1962

Barrels/Day-

Total Domestic

521

544

643

733

98

122

191

the

of

rate

377

423

422.

452

484

424

444

446

454

829

; 865

883

called

Demand

UNDERWRITERS '

BROKERS-DEALERS
& DISTRIBUTORS

is

our

available

50 offices.

in

the

by

our

and 531 Account Executives
the successful sale

of

offerings and private placements.




cities

Contacts with

individual and institutional buyers

assure

from

the

cubic

feet

signs

some

is

sales

total

bil¬

daily,

up

sulphur

a

450

million

daily, which, however

expected

to

be

Expectations

reached

are

in

that

cubic

feet,

an

increase

Table

reviews

VIII

Continued

mercaptan

dis¬

page

Lester, Rydns & Co.
MEMBERS NEW YORK STOCK EXCHANGE
American Stock

IfeP

new

t

Pacific Coast Stock Exchange

Exchange

drastic

consider¬
utilization of what is prob¬

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

623 So.

largest oil deposit,

In

sands.

tar

|

Corner WilsHire and Hope

Telephone MA 5-7111

an

miles
northeast

about 21,000 square

of

located about 300 miles

Hope Street, Los Angeles 17, Calif.

Teletype 213-683-0012

15 OFFICES FOR THE MOST

COMPLETE RETAIL COVERAGE

OF SOUTHERN CALIFORNIA

Edmonton, it is estimated that

of

be approxi¬

oil may

of

reserves

,

mately 375 billion barrels. There
have been three propositions made
to the Alberta Oil and Gas Board

CORONA DEL MAR

LOS ANGELES
RIVERSIDE

ENCINO

GLENDALE

OCEANS1DE

SAN DIEGO

HOLLYWOOD

PASADENA

SANTA ANA

LONG BEACH

POMONA

REDLANDS

SANTA MONICA

WHITTIER

development of these tar

the

sands, and although one proposi¬

Great
Canadian Oil
did have approval,
this venture has now requested an
the

tion,

Sands Limited,

production from 31,500

increase of
barrels

day to 45,000

a

barrels a

Stone & Ymum

day in order to make the project

financially feasible and also ob¬
tain financing from Sun Oil Com¬
other

for

100,000

questing

permission

barrels

day production, consist¬

a

of

ing

Shell

and

million project of
million project

$250

a

and

Investment Securities

$350

a

Cities

the

of

MEMBERS PACIFIC COAST STOCK EXCHANGE

amounting to 67.5 million.
proposals, each re¬

pany

Two

Service,

Imperial

group,

California Municipal Bonds

Municipal Financing Consultants

Richfield

have

•

been

Esti¬
production

rejected for the time being.
mates

are

that by 1970

RUSS

BUILDING. SAN

FRANCISCO

from the Athabasca tar sands will
be

but the Alberta Oil

necessary,

and

Conservation Board has

Gas

reluctant

been

mission

for

to

the

give

any

development

tion will

in

no

way

•'

-

;

-A

be adversely

/

The expansion of

sumption

and

the

domestic

Teletypes 415 393-9701

•

415 393-8148

1-1314
•

415 393-8853 (Bond Dept.)

of

present Canadian produc¬

affected.

Bell

Telephone YUkon

per¬

these sands until it has assurance
that the

.

con¬

substantial in-

Direct Private Wire to Asiel

& Co., New York

May & Gannon, Inc. Boston, Mass.
Fairman

of

Canadian

on

only

earlier

1963

20% over last year.

40% from

average

have merely

of

this

ural gas will reach about 2.5 bil¬
lion

preceding year. Last year; in
of

contracted

daily Canadian production of nat¬

nat-

of

averaged about 2.1

million

daily, down somewhat

year.

rapid

a

320

averaged

feet

and

this depleting situ¬

Athabasca

for

A substantial market for the distribution

help

the

reserves

view of

area

59 partners

fields

past three years so-

the

able the world's
the

by

shows

sales

lion cubic feet

spite

discovery
rate, the industry will have to
look for another source to provide
adequate oil supplies.
In

securities

gas

line

cubic

new¬

Alberta-California

change in the Canadian

ing the

of

In

ural

completed

gas

ation, Canada has been

The Oil and Gas Journal

covered

;

1962

rate.

the

averaged
of

extensions

been

.

765

ly

preceding eight-year

937

374
'r.

problem, deliveries from the

in

Natural Gas

andgrowing at

healthy

ad¬

coveries. Unless there is a

Imports

gas

ex¬

and it is quite apparent
new

249

Domestic

(Including Inventory)
Source:

have

one-fifth

that for

85

and Product

illustrated

past three years new dis¬

period,

462

Supply

is

The spectacular increase in nat¬

from

came

existing

to

For the

'

Crude

VII.
:

year's

last

of

reserves

coveries

-Thousands of

Production for

of the Canadian in¬

Most

about

Exports

fields last

new

lion

dustry.

during the past five years

production

Table

Gilmartin, Morgan Stanley & Co., New York; A. D. Gulliver,
Lynch, Pierce, Fenner & Smith Incorporated, New York;
F. B. Whittemore, Morgan Stanley & Co., New York

■

discoveries has

new

credited to

ditional

T.

Merrill

of abatement, but still all indica¬
problem for future tions are that this segment of the
in Canada, and re¬ petroleum industry is still very

amounted to only 24.3 mil¬

year

R.

totalled about 670 million barrels.

Supply and Demand Data

Production

domestic

in

relatively little in¬

The lack of

serves

Liquid Hydrocarbons

1958

from

crease

ural

tensions
TABLE

stem

to

anticipated for the export

crease

total

)

increase in

However,

the greater market.

production,

to

States.

principal increase is

with

demand

production

duction

Al¬

about 465,000 barrels a day, an

barrels

largest

far

daily in 1963.

of

of

day.

expected
rels

by

day

of

by

a

presented

to

1963

a

for

Charles C. Pierce, Rauscher, Pierce & Co., Inc., Dallas;
George, Midwest Stock Exchange, Chicago; Gustave A.
Alexisson, Walston & Co., Inc., New York

liquid output in this province is

has

Policy

production

crude

33,800

the

Mrs.

C.

expanding

by

increase.

amount

Production

enabled

38,000

to

show

accounts

Oil

about

barrels

centage

development

and

continuing implementation

the

24,400

will

day,

areas.

Crude
The

additional

of the

from extensions to

13,000

Columbia,

&

E.

91

& Co.,

Los Angeles

92

The Commercial and Financial Chronicle

92

J.

Emerson

Thors, Kuhn, Loeb

C. Pharr Duson, Rotan, Mosle

& Co., New York;
& Co., Houston

Mr.

&

Mrs.

K.

C.

Ebbitt, Shelby Cullom

Co.,

New York

for

Report of IBA Oil, Natural

37-year supply, almost suf¬

a

ent demand.
If

gas

(sufficient

sales, including both

for

Proved

domestic and exports to the United

mands.

States

end

of

35.2

trillion

and

of

use

both

shows

Canadian

the

increasing

natural

in

gas

to

reserve

1962

reserves,

cubic

at

the

approximately

were

feet, compared

lion

cubic

reached

be

there

a

large

natural

gas

supply, the discovery rate

these

of last year's
Canada

has

production, Western
proven

gas

reserves

de¬
are

by

the

will

flow

natural

in

meet

1963

$33

the

of

Trans-Canada
V:.V

-

/;■

about

averaged

cubic

feet,

if

versus

in

contrast

pipeline

to

last

Underwriters, Distributors,

demands.

CORPORATE, MUNICIPAL

will

be

satisfy total needs.
AND

Transmission's

577-

Empress, Alberta,

Winnipeg, Manitoba, which is

line in Canada and will certainly
be

stimulus

a

plans

Interprovincial Pipeline

TABLE

increased

for

LPG.

of

con¬

Trans-Canada

to loop 205 miles of

34-

a

VIII

Canadian Natural Gas Markets

a

Domestic

T otal

Export
Sales

Sales

to

Sale

s

Feet/.Day

if
ap¬

supplies
■

Cubic

----Million

1950

to

159

1951

difficulty in

some

adequate

providing

,

noteworthy construction

Petroleum

line

proximately the level anticipated,
there

Another

is

$100
year.

an¬

However,

increases

demand

future

million, doubling that of last

sumption

ent reserves are sufficient to meet

Primary Trading Markets...

pipeline
over

apparent that the pres¬

seems

current

ebb

expan¬

Year
It

boost

to

&

,

considered to be the longest LPG

year's

construction,

Greenshields

York

construction for 1963 to

sion plans of Trans-Canada Pipe¬
and

Bulford,

expected

are

to

Pipeline Construction
In

J.

New

mile line from

demands

future

these

gas

Pipe¬

%

be met satisfactorily.

to

is

million

liquids from the

recover

Michael
Co.,

Mrs.

last

the

trillion cubic feet

of 5.7

&

be

need

to

years

During

has

gas

nually
are

10

Mr.

the discovery rate for

trillion

need

will

industry

next

projects

Petroleum's

line.

On this basis,

1973.

forecasts.

four years

3.65

will

daily

57 trillion cubic feet dur¬

to find

ing

ap¬

present

Gas

of

decade

next

feet

Canadian

the

with production of approximately

at

the

construction

Pacific

assured, total demand of 10 bil¬

936 billion cubic feet. On the basis

areas.

Although
pears

needs)

present

be inadequate for future de¬

may

Canadian

projections

for

pres¬

0

Thursday, December 26, 1963

.

plant at Empress, Alberta, which

the

of

some

the

''

Association
mand

natural

Louis A. Gibbs, Laird, Bissell & Meeds, New York;
D. T. Miralia, Kuhn, Loeb & Co., New York

&

ficient to supply double

Gas Securities Committee
Continued from page 91

Davis

'

.

.

178

1952

159

''

,

178

---

181

22

203

203

-

26-

229

19

293

.

UNLISJED SECURITIES

'

1953
Refining

-.

,

■

2 74

1954

In accordance with the National

Oil

&
SINCE

Policy,

ing

industry

to

1883

in

crease

Exchange

American Stock
SAN FRANCISCO
MENLO PARK

Pacific Coast Stock Exchange
Exchange

'

LOS ANGELES

•

SAN JOSE

•

•

.

the

NEW YORK

Lewis, Inc., Seattle

as

capacity,
cajacity

estimated

816

569
776

228

892

308

1961

1, 033

476

1962

1, 151

990

2,141

1, 363

1,123

2,486

-

1, 004

cur¬

(Est)

1963

,

1, 200

;

1, 509

excess

132,000 barrels

of

521

59
247

I960

in; additional

day

a

the

,

1959

over¬

With

picture.

462

424

■

the

projects totalling about 48,barrels

000

Refsnes, Ely, Beck & Co., Phoenix, Arizona

the

359

30

1958

was

crude,

in

importance

Canadian

all

George Patten Investment Co., Portland, Ore.
•

great

as

domestic

of

use

rent

John R.

not

last

demand

31

'

394

1957

in¬

the

Ontario refining area will assume

greater

OAKLAND

Direct Leased Wires to: Baker, Weeks & Co., New York
•

although

hoped for, with the trend toward

Private Wire Connections between all Cities

Wertheim & Co., New York

'

product

was

year

Members New York Stock

1956

has

and

grow,

1955

Canadian refin¬
also continued

the

328

,

day

a

Source:

The

Oil and Gas

Journal

by the end of the year is expected
to

preclude

years.

significant project
refinery
at

year

will

a

a

The most

Shell

the

UNDERWRITERS AND

the middle of the

by

cast of $35 million and

have

barrels

was

Toronto, which went

near

stream

on

construction

any new

for the next few

capacity

a

of

31,000,

This project will

day.

:<ri}
°

aid

brokers-trading markets

the

Of

lowering

under

50%

ments. The Shell
'

v

Bell

System Teletype 415 393-7136

a

><

a

ern

portion

CO., New York

refinery initiated

COMPANY

the TransNorth-

from

of

flow

the

Members:

Angeles

to

Montreal

American Stock

1

in

and

thq

A smaller

465 California

Modesto

Street, San Francisco

Santa Cruz

v

Members:
New York Stock

Exchange




•

w

Pacific Coast Stock Exchange

Exchange

Exchange (Associate)

is

dis¬

placement of imports.

BRUSH, SLOCUMB & CO. INC.

Exchange * Midwest Stock

products

Ontario

factor

important

an
,

INCORPORATED

•

Pacific Coast S ock

SAN

TURNER-POINDEXTER & CO., Los

CALIFORNIA

PIRST

Products Pipeline, which will

eliminate

F. S. SMITHERS &

of

BROKERS - DE ALERS

I

to

require¬

reversal in the direction of flow

of

Private wire to:

imports

refinery

of

R

Oil

National

of

Policy

retail distribution

u

considerably in fulfilling the

objectives

DISTRIBUTORS

FRANCISCO:

LOS

ANGELES:

PORTLAND:

project but quite im¬

PRIVATE

300

647

813

WIRES

Montgomery Street

South

S.

TO

W.

Spring

Alder

NEW

Street

Street

YORK

•

AND

•

•

Teletype 41 5-393-9555
Teletype

Teletype
ALL

213-683-0055

503-224-1744

DIVISION

OFFICES

portant to the Maritime Provinces
is Texaco of Canada's

13,500 barCALIFORNIA

rel-a-day
on

refinery,

which

stream in August and

crease

the

petroleum

supply in this
One

of

the

went

will in¬
product

area.
more

Eureka

Anaheim

Glendale

Rio Vista

San Luis Obispo

OREGON

important

OFFICES:

Fresno

Pasadena

San Mateo

OFFICES:

Beyerly Hills

Long Beach

Sacramento

Santa Barbara

Corvallis

Chico

Monterey

St. Helena

Eugene

Napa

San Diego

Santa Rosa
Medford

Concord

Oakland
San Jose

Whlttier

"

Salem

Volume

198

Number

6328

.

.

The Commercial and Financial Chronicle

.

it

Shelby

Cullom

Davis, Shelby Cullom Davis & Co.,
John P. Labouisse, Howard, Weil,
/i/infffc
K
Labouisse, Friedrichs and Company,

New

I

ff/i/fffoh

New

inch

line

in

<•

/>n

some

the

throughput

and

also

capacity.

34-inch line in Manitoba and also

New
G.

States

Michigan

These

the

three

projects

be¬

New

will

prob¬

only

creased

beginning

the

provision

natural

and

New

After

a

review

operations

difficult to

be

in

oil

the

Canada,

and

picture
The

and

promising

outlook

couraged investment

tion,

in

production

crude

fining.

for

prospects

With

self

that

appears

enjoy

a

new

the

,

steady growth in

a

Lehman

New

•,

AND

NATURAL

Kenneth

E.

Eastman
ties

New

&

GAS

Dean

New

The

G.

Co.

York, N. Y.

;

'

,

CROSSLEY.

&

Co.,

Bankers

,

York

New

Company, New York

Continued

on

page

U. S.

Co.,

&

Co.,

r

■

'

#

.
.

.

York

New

-V'-v

-.

placements

...

Municipal underwriting

.

...

mergers

and reorganizations

Advisory service to municipalities

Association

Officers

Finance

Private

Schwabactier

York

GORDON
Townsend, Crouter & Bodine

Members: New York Stock Exchange

News

Honolulu Stock Exchange

•

Co.

&

Pacific Coast Stock Exchange

Salt Lake Stock Exchange

100 Montgomery St. at Sutter

•

American Stock Exchange

Chicago Board of Trade

•

Commodity Exchange, Inc.

•

•

New York Cotton Exchange

Fresno Cotton Exchange (Associate)

Telephone SUtter 1-5600 (Area Code 415)

SAN FRANCISCO 4

CULLOM, FRANCIS J.
W. C. Langley & Co., New York
CUNNINGHAM. KIRKWOOD B.*
Cunningham, Schmerz & Co., Pittsburgh
CURLEY, FRANK E.
Hawkins, Delafield & Wood, New York
CURRY. Jr.. BROWNLEE O.
Equitable Securities Corporation,

415-393-7813

Traders and Underwriters
Order

Teletype

III. THOMAS U.
Corporation, Atlanta

York

•

'

-

GEORGE E.*
World Report, Washington

&

•

New York Produce Exchange

Department—

'

NEW YORK

BOISE

PRIVATE

FRESNO

WIRES

HONOLULU

n

•

OFFICES

PRINCIPAL

TO

MONTEREY

LOS ANGELES

REDDING .SACRAMENTO SALT LAKE CITY SAN JOSE
Direct Private Wire to Scherck,
-

415-393-7260
415-393-8036

'

Municipal Department

Interstate Securities

NAPA

SANTA BARBARA

OAKLAND

PALO ALTO

SANTA ROSA WATS0NVILLE

Rlchter Company, St.

Louis

•

■

■

.

,

.

CURTIN, JOHN S.
Kalman & Co., Minneapolis
CURTIS. ARTHUR W.
A. G. Becker & Co., Chicago
J. DEWEY*

DAANE,

Federal

Reserve

Board,

DAKIN. JOHN H.*
J. Barth & Co.,
DALENZ.
Calvin

DALY.

Teletype
393-7492

Washington

Francisco

San

JOHN McG.
Bullock, Ltd., New York

O

IRA

Lehman
415

Brothers,

New

DARBY, EDWIN W.
Chicago Sun-Times,

York
T"

—Jw'

"V

Chicago

SINCE

"*cl0

DARMSTATTER. E. WILLIAM

1858

<(,

juO6

Stifel, Nicolaus & Co., St. Louis
DATTELBAUM, DAVID N.
A.

Telephone
EXbrook 2-7112
,

Area Code

415

.

Becker

G.

J.

ONE

STREET
SAN

FRANCISCO
94104

DAVIDS.

Neuhaus

Investment Dealers and Brokers
&

Co.,

Industrial Brokers

Members:

New York Stock




Exchange

Pacific Coast Stock Exchange

Ralph W. Davis & Co., Chicago
DAVIS, SHELBY CULLOM*
Shelby Cullom Davis & Co., New York
DAWKINS, RICHARD B.
Faulkner, Dawkins & Sullivan, New York
DAY. JAMES E.
Midwest Stock

Underwriters

MEMBERS:

New York Stock
r-

460

Exchange

American Stock

■

Montgomery Street

•

r

Pacific Coast Stock Exchange

Exchange

■

•

■

'

San Francisco 4, California

•

teletype: 415 393-7778

•

EXbrook 2-0900

&: 415 393-7948

C

SCOTT*

\

LAWSON, LEVY, WILLIAMS & STERN

•

Houston

MARK*

Lester, Ryons & Co., Los Angeles
DAVIDSON, PHILIP D.
Kidder, Peabody & Co., New York
DAVIS. E. H.
John Nuveen & Co., Chicago
DAVIS. Jr., HERBERT H.
Kirkpafrick-Pettis Company, Omaha
DAVIS. JOHN S.
Republic National Bank, Dallas
DAVIS.

sutro er co..

Curtis

&

PHILIP

Underwood,

MONTGOMERY

Co., New York

&

DAVANT, JAMES W.*
Paine, Webber, Jackson
Minneapolis
DAVID.

A

95

Underwriting and corporate financing

Toronto

LYNN*

E.

CRUMPTON,

Bell

'

^

CROUTER,

New

Trust

York

New

A.

Journal,

IAN*

J.

Washington

Gardner

Wall Street

DIKEMAN. Jr.. EDWIN J.

Specialists in Western Securities

HENRY J.*
& Dempsey, Cleveland

CRUIKSHANK.

Louis, Mo.

Dallas

Jacksonville

Philadelphia
CROWELL. DONALD W.*
Crowell, Weedon & Co., Los Angeles
CROWLEY. LAURA B.
Investment Bankers Association,

Ratcliffe

Pancoast,

C.

DIEKMAN.
The

Bank,

Pancoast,

Francisco

San

De Haven &
.

THOMAS

Indianapolis
RICHARD

Angeles

T.

DcMILHAU. JOHN W.*
The Chase Manhattan

CROSSMAN. EDGAR O.
Clark. Dodge & Co., New York
WILLIAM R.
First National City Bank, New

Neuhaus

Los

&

Raffensperger, Hughes & Co.

Townsend, Crouter & Bodine

CROTTY,

Joseph R. Neuhaus

St.

&

New York

Dallas

_

DIEHL,

Sons, Baltimore

WALTER

York

New

San Antonio

L.

&

A.

DEWAR, ROBERT L.
Dewar, Robertson &

& Co., New York

RALPH

Co.,

&

B.*

Co., New York

GEDDINGS H.*
Co., Columbia

Municipal

Co.

York, N. Y.

Reinholdt &

EDWARD

Crawford

H.

Nesbitt, Thomson &
CROSS, CALVIN M.

Burch Williams

:

.

DEWAR, H. H.
Dewar, Robertson

B.

Garrett

DeHaven

Richmond

Co.,

&

JAMES I.*
of California,

Bank

CROOKSTON,

Chicago, 111.

,

<

.

WILLIAM

Reynolds

Stokes & Co.,

Van Ingen

j.

DeHAVEN,

Squire, Sanders

National Boulevard Bank

Auchincloss, Parker & Redpath

SELDING.

DEVLIN.

DeGROOT, WILLARD G.*
Bateman, Eichler & Co.,

York

New

CREHAN, JAMES E.
Moore, Leonard & Lynch, Pittsburgh
CRITTENDEN. G. LAMAR*
The Fiifst National Bank, Boston

York, N. Y.

Myron F.

B.

Craigie & Co., Richmond

CRAWFORD.

N. Y.

Underwood,

•

■

MARQUETTE

BARY.

DeGROFF.

WALTER W.

Jr..

CRAWFORD,

Brothers

&

De

W.*

CRANFORD. JAMES A.
Atlantic
National
Bank,

.

* /"

Houston, Texas

York, tf'.Y.

WALTER

CRAMPTON,

.

•.

,

Robert

Craigie

F. W.

Witter

Charlotte

Co.,

ROBERT H.*
Corporation,

CRAIGIE,

Rotan, Mosle & Co.

J. Raymond Boyce

New

V

Edward Randall, ni

Securi¬

Reed,
Axe
Securities
Corporation,
John R. Haire, Hugh W. Long & Co.,
Inc., Elizabeth, N. J.

York;

New

Harris, Upham & Co., New York
&

Paribas

Kenneth E. Meyer

Hill, Chairman

Dillon, Union

Chadwick

S.

GREY

DEAN, HOWARD

York

W.

S.

Elkins^ Morris,
Philadelphia

CARY

CRAIGIE,

Houston, Texas

COMMITTEE

San
Co.,

^

.

DAYTON.

from page 77

Hallg^rten

Respectfully submitted,
OIL

*

Houston

DALTON
Co., New York

Dickson

CRAFT.

Y.

N. Y.

Incorporated

SECURITIES

&

A.
S.

New

Spencer Trask & Co.

-

■'

r ;

r

CRABTREE. J. SCOTT
Equitable Securities Corporation,

.

Sterling McKittrick, Jr.

will

future

'

years.

R.

Katzenbach, II

New York,

high level, it
industry

COX.

Weeks

N.

J.

Hirsch

Edwin L. Kennedy

re¬

demand

COUIG,

Company

&

y

sufficiency

-

increasing and domestic
approaching

and

Continued

Jacques

New York,

en¬

distribu¬

Robert M. Ayres, Russ & Company, Inc.,
Antonio; C. Pharr Duson, Rotan, Mosle &

n

Spencer Trask &

White, Weld & Co.

1964.

has

and

York,
F.

L. Emery

san¬

guine about the present Canadian

i

.

Kidder, Peabody & Co.. New York

Dallas, Texas

is

it

anything but

n

De

First Southwest Company

unsupplied

of

I

-

F.

petroleum

to

gas

♦

DeNUNZIO. RALPH D.*

Graham

James

of the country.

areas

gas

of

in¬

of

t

Friedrichs

Hornblower

$100 million expenditure and

are

.

Orleans, La.

David

about two-thirds of

consume

Shelby

Superior.

and

„

York, N. Y.

Friedrichs

portion of the system

J

Howard, Weil, Labouisse,

section of its line in the United

tween

/

I/..

n

Kidder, Peabody & Co.

Inter-

Pipeline is looping its

a

R m

Edgar R. Everitt

compression to increase

provincial

ably

A. Alexisson, Walston & Co., Inc., New
York—Celebrating his birthday at the Convention;
Mrs. A. P.
Knoop (Auchincloss, Parker &
Redpath), New York

w

Orleans

Manitoba

add

a

Gustave

York;

-

Exchange,

"Denotes Mr. & Mrs.

Chicago

210 West Seventh Street
New York

•

Berkeley

•

*

Los Angeles 14, California

San

Jose

•

Beverly Hills

•

•

MAdison 5-7311

Hayward

Correspondents: Manila, P. I.; Honolulu, Hawaii
Direct private wires to all

principal markets

'/•

•

Fresno

The Commercial and Financial Chronicle

Mr.

&

Mrs.

Edwin
"

F. Scheetz, Moore, Leonard
Lynch, Pittsburgh

&

Edward

F.

Hoban,

& Hoban, Chicago;
National Bank, Chicago

McMahon

Milton J. Hayes, American

Elliott Bliss, Halle & Stieglitz, New York; Eugene
Lynn, Wertheim & Co., New York
'

,

.

.

.

Thursday, December 26, 1963

Mr. & Mrs. Joseph A. Glynn, Blewer, Glynn & Co.,
■
St. Louis
|

ton. MB 8 Ml Int.
i/i

•

MUNICIPAL BONDS

•

CORPORATE SECURITIES

•

BANK AND INSURANCE STOCKS

PRIVATE

PLACEMENTS

MERCANTILE

BANK
AREA

—

BLDG.,
CODE

UNDERWRITINGS

DALLAS

1, TEXAS

214

Riverside 8-0033

TWX

899-8931

Eugene C. Travis, Hayden, Stone <ft Co., Incorporated, Chicago; Harold R. Holmyard, Hay den, Stone
& Co. Incorporated, New York; Mr. & Mrs. Emile A. Legros, Prescott & Co., Cleveland

Underwriters

Distributors

Perkins

&

Dealers

Company, Inc.

Corporate Securities

Mercantile Securities Bldg., Dallas 1, Texas
Riverside

1-5961




Teletype 214 899-8613
Mr.

&

Mrs.

Monroe

Philadelphia;

Mr.

V.

T.

Poole, Geo. B. Gibbons & Co., New York; William T. Poole, Poole <fi
Anthony Coculo, Fidelity-Philadelphia Trust Company, Philadelphia

Co.,

& Mrs. Robert M. Johnson, Dawson, Nagel, Sherman & Howard,
Denver; Mrs. H. J. Crawford
(Squire, Sanders & Dempsey), Cleveland; Ray H. Lindman, O'Melveny & Myers, Los Angeles

Volume

Number

198

6328

.

.

95

The Commercial and Financial Chronicle

.

i|
11

ast

:jr

Mr. &

Mrs. H. C. Piper, Piper,

Minneapolis

Jaffray & Hopwood,
'

New

York

Co.,

,

Pershing

York

New

Co.,

&

WARREN
J, N. Russell & Co.,

,

DIMASSIS.

STANLEY

MRS.

Investment

EMPEY,

Julien

II.

WILLIAM

American

New

York

peter c.
Barron's, New York

Dubois,

DUCHESNEAU. JOHN R.*
Burton J. Vincent & Co., Chicago

FAIRMAN,

ERSKINE*

Bache

Powell, Kistler & Co.,
DUFFY. SYDNEY

Fayetteville

New

Stock

York

New

Goodbody & Co., Dallas

Second

Securities Co.,

DUNSTAN.

FEELEY,

York

FLEETWOOD*
Corporation, New York

DUSENBERY. EARL B.
Pacific Northwest Company, Seattle
C.

PHARR*

EARLE.
First

.

F.

Ferris

'

HENRY*
of

&

FINNEY.

Michigan Corporation, Detroit

Bear,

EBBITT,

FISHER,

C.*

Shelby Cullom Davis & Co., New York
ECKELBERRY, JOHN E.
Clark, Dodge & Co., New York
,;~
EDNER,

CLARENCE

F.*

First Western Bank & Trust, Los

EDWARDS.
A.

G.

III.

Edwards

First

EGBERT.

&

Mr. &

GARRAWAY.

Sons.

Drexel

National

Bank,

&

DAVID

William

Blair

GULLIVER, ALLAN D.

Lynch, Pierce, Fenner &
Incorported, New York
ALBERT E.
Dempsey-Tegeler & Co., St. Louis

WAYNE*

California

JOSEPH

Bank,

Los

Angeles

H.

GUNN. EDWARD

A.*

Midland-Osier

Glynn & Co., St. Louis

GOLDSMITH. J. H.
The Montreal Star,

Securities

y

GUTFREUND. JOHN H.*
Salomon Brothers & Hutzler,

Montreal

GOODWIN. Jr.. ARTHUR E.*

HAACK,

St.

E.

National

Bank,

Fort

Robert

Worth

Tripp
HAIRE,

Johnston, Lemon & Co., . Washington
GRANT. Jr.., HUNTER B.*
Coffin & Burr, New York

C.

Guaranty Bank,

HAIGHT. Jr., C. M.

T.

First

GRAM. Jr.. HARVEY B.*,

S.
Baltimore

Jackson

Hugh

W.

Baird

W.

R.

Long

'

&

.

Co..

&

Q

D.

&

Hornblower

Co., New York
FLYNN. GEORGE T.

E.

Hutton

F.

John

Mrs.

New
/

York
'

&

Co., Cleveland
ROBERT M.

FOMON,

New York

Weeks,

LEONARD

McDonald

&

DISTRIBUTOR

UNDERWRITER,

•

DEALER

Co., Los Angeles

RALPH

A.

Kemper

&

Co.,

Detroit

State,

Mnnioipai, County & District Bonds

illllflliipiw
Obligations of AAitlrorities

39 YEARSlEXPERIENCE
in the Texas Securities Market

X £ Vi ^

?

♦

'■'( X

^

i=

j ;-4 y t i i I y

I

'f § 0

11 £ $1

ji

j I fI

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'

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ill ill

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,

sx

> 111 %

Fu.blic

I # %'i I fI ^

IiJ

Bank

Common

Insurance

Stocks

Stocks

,

_

in
111 Mrllpl lbl

I fl|

l!| ti II I
U
if!

i

f,

llljisl ii*;
*

*

HOUSTON
houston.'

'»tLli
;

A

FIRST

-

p

<£(HCtfau>€dt

SAN ANTONIO

Dittmar &

&

&

•

'

nmmuMmmmnimmm

Utility & Incluistrial Bonds

Preferred

COMPANY

DALLAS

Company, Inc.
Member vfL/) yiyy-s

Exchange
Stock Exchange

New York Stock

American
DALLAS
Dallas Federal

201 N. St. Mary's
Street
*

HOUSTON

SAN ANTONIO

Savings Building




v

If'n?? Texas National
>

5*

Bank Building

-Jvxv

--XC-.-.

v

wvy "

-.y.

A'
Sv

sV

Elizabeth

Continued

Pittsburgh

Chicago

Milwaukee

Co.,

York

New

& Co.,
JOHN

&

&

Co.,

York

HAGAN, ni, JOHN c.*
Mason-Hagan, Inc., Richmond

The

Louis

New

ROBERT W.*

Johnston, Lemon & Co., Washington
GOSS. JACKSON W.*
Putnam Fund Distributors, Boston

New York

WALTER

Limited,

Toronto

GRAHAM.

York

Smith

GUMMERSBACH,

B.

&

Dallas

T.

New York

Co.,

Merrill

Legg & Co., New York
W.

United

Blewer,

M.*

New

ROBERT

GLOVER.
GLYNN.

CHARLES
&

.

ARTHUR R.
New York

Buyer,

'

FORD ON,

""Denotes

.

C.

Bond

N.*

Sullivan

Sutro Bros.

C.

Co.,

Jr.,

Brown

Deposit

Scribner,

GEORGE

FLYNN, H.

Co.,

Alex.

New York

Co., Denver
FITTERER. Jr.. JOHN C.*
Wertheim & Co., New York
FLETCHER. DONALD T.
?

Company. San Francisco

RICHARD

Estabrook

-

Co.,

&

FLOERSHEIMER.

JOHN

F.
California

Deane

Bosworth,

Angeles

BENJAMIN F.
& Sons, St. Louis

EDWARDS. WILLIAM N.*
William N. Edwards & Co., Fort Worth
EGAN.

&

CHARLES

Singer,

ROBERT

The

GUERIN, DEAN P.
Eppler, Guerin & Turner,

G.

Illinois

H.*
Corporation,

HOWARD*

Jr.,

FISHER.

A.

& Co.,

,

York

New

JOHN L.

GARLAND.

GEORGE M.
Co., Washington

Stearns

EATON, Jr., CHARLES F.
Eaton & Howard, Boston
KENNETH

JAMES

Smithers

S.

FERRIS. Jr..

,

& Co., Houston

Rotan, Mosle

E.l
& Co., New York

FELCHLIN.

FUGLESTAD. ARNE
Lee Higginson Corporation,

&

y

GUERNSEY.

Continental

KURT

York

GUASTELLA.

Loeb, Rhoades & Co., New York

MERLE

>

New York

Hanseatic

York

New

GLISS. WILLIAM B.
John

GARDNER. JOHN R.
Reinholdt & Gardner,

THOMAS

Goodbody

.

Indianapolis

New

'

Chicago

/

Reynolds

v.

Washington

Woody & Heimerdinger,

GARDINER.

M.

GLANVILLE,

GARDINER, Jr., JOHN J.*
Irving Lundborg & Co., San Francisco

New

'

.

Cooley & Co., Hartford
GALLAGHER, WILLIAM G.
Vance, Sanders & Co., New York

FARRELL, F. D.
City National Bank, Kansas City

E.

Carl

'•*

Association

'.

ROBERT H.

GRUNEBAUM,

Chronicle, r

_,y

GIRMCHEID, Jr.. ROBERT A.
Investment Bankers Association,

i

Cincinnati

'

V

Financial

''

Legg & Co., Baltimore

GRIGGS. ALEXANDER M.*
Common, Dann & Co., Buffalo

/

ROBERT*
&

>,

GERARD

C.

Gregory & Sons,

<

GILLESPIE. KENRICK S.

,

Folger, Nolan, Fleming & Co.,
Washington
.

Walter,

FREDERICK ,C.*

District

-

FROEHLICH, JOHN E.*

Washington
FARNSWORTH.

'

.

York

New

FRITZ, CECIL M.*
City Securities Cornoration,

GAERSTE.

DUNN. STEWART A.*
/ C. J. Devine & Co., New York

DUSON,

Philadelphia
<

V

Commercial

Co., New York

E.*

R.*

,

Gregory & Sons, New York
GREGORY. III. WILLIAM H.

,,

&

GILDENBERG.

y

duPont &

JOHN

Jr., ROBERT
Co., Dallas

GILBERT,
Sanders

FRIEND, ARTHUR S.*

W.

Bankers

Corporation.

Woodcock, Moyer, Fricke & French

Los Angeles

Fox,

New York

Co.,

Investment

Blyth & Co., New York
DUNLAP. HUGH D. *

Paribas

FRICKE.

John

Bissell & Meeds, New York

Laird,

T.*

York

,

Trust Company,

Guaranty

GREGORY.

GIBBS. LOUIS A.

Houston

City

BRADLEY*

J.

GREENE.

Chicago

GERRISH,

York

Francis I.

York

D.

Exchange,

F.

Jr..

&

H.

Oklahoma

Morgan
New

ROBERT G.*
Oscar E. Dooly & Co., Miami

New York

Liberty National Bank & Trust Co.,
GREEN.

&

Philadelphia
GEORGE. EDWARD C.
Midwest Stock Exchange,

FRENCH, JOHN S.*

New

FALVEY. JOHN A.

>

G.

EDWIN

Co.,

Securities

American

R.*

Meyer &

&

& Frederking,

FREELAND,

Clark, Dodge & Co., New York
EWING, ROBERT W.*
A. E. Masten & Co., Wheeling
v
EXLEY, CHARLES E.*
Charles A. Parcells & Co., Detroit
FAHEY. LESLIE J.
Fahey, Clark & Co., Cleveland

c.»

Co..

Fridley

EVANS. CARNOT W.

GEORGE J.

Dubois, allen

DUFF,

AARON

Stern, Frank,

ETHERINGTON,

DeHaven

Cleveland

Stiver & Co., Cleveland

GREEN. GEORGE H. C.*

PHILIP P.
Townsend, Crouter & Bodine

GAUGHAN.
Co., New York

FREDERKING, WILBUR H.

D.

Co., New York
ERPE, CARL K.
Ladenburg, Thalmann & Co.,

Co.,

Chicago
&

NORMAN

&

Fox

Fahnestock

Chicago

Company,

F.

FREDERICK. PAUL O.

v

S.

Asiel &

ESHMAN,

Fleming &

DOUGLAS. WILLIAM C.*
Douglas Securities, Inc., Chicago

Wertheim

Collins

ERLANGER.

LESLIE*

Folger, Nolan,
Washington

MILTON

ERGOOD, Jr., RUSSELL M.*
v
Stroud & Co., Philadelphia

Donaldson, Lufkin & Jenrette, New York
DORBRITZ, ERNEST O.
Moore, Leonard & Lynch, Pittsburgh

Hayden,

Turben & Co.,

Saunders,

THEODORE A.
Miller & Co., Cleveland

GASKELL,

_

Minneapolis

FRANKLIN. ED. W.
Dittmar
& Co., Dallas

York

New

LESTER H.*
Bank, San Francisco

EMRICH.

Saunders, Stiver & Co., Cleveland
DOMINICK, BAYARD*
Dominick & Dominick, New York

DROBNIS.

P.

Wells Fargo

JACK O.

Cleveland

Hopwood,

&

FOX, P. FRED*

ELLIOT. WILLIAM H.
World-Telegram & Sun,

McLeod, Young, Weir & Co., Toron.o

DOUGLAS.

y

Philadelphia

DINNICK, JOHN S.*

DONALDSON.

Co.

Jaffray

S.*

WILLIAM

Merrill,

GRAYELL, JOHN M.

H.
The Ohio Company, Columbus

GASAWAY, HOWARD

GEORGE*

Piper,

Association.

Bankers

Washington

DOERGE.

FOX,

ELKINS, Jr., GEORGE W.
Elkins, Morris, Stokes &

93

GRAY.

McDonnell

•

FOSTER,

Continued from page

^

JOHN P.
& Co., New York

GARVEY.

SCOTT*

DAVID

FOSTER.

York

New

y
V<L

Mr. & Mrs. John W. de Milhau, Chase u+anhattan
Bank, New York

Mr. & Mrs. Ralph De Nunzio, Kidder, Peabody &

Mr. & Mrs. Amyas Ames, Kidder, Peabody & Co.,

•/'

^

:• ••

.

..

..

■
'•

•

on

page

98

96

The Commercial and Financial Chronicle

.

.

Thursday, December 26, 1963

.

w

hk

m

jT:

w

m

Amyas

Ames,

Kidder, Peabody & Co., New York,
David J. Harris, Bache
Chicago, President-Elect

Gus

G. Halliburton, Equitable Securities Corporation, Nashville; Edgar M. Norris, Edgar M. Norris

Retiring President, pinning
<ft

& Co., Greenville, S.

Co.,

Frank

C.

W. North,
Barret, Fitch, North
&
Kansas City, Mo.; Vincent Coakley,
Bear, Stearns & Co., New York

Co.,
,

,

■

\

J /jjM

s.

Robert J. Pierce, Pierce,
Jacksonville; Anders F.
Bank,

■

Wulbern, Murphey, Inc.,
Myhr, Atlantic National

Jacksonville

DEALERS IN

MUNICIPAL SECURITIES
FIRST NATIONAL BANK

FORT

OF

WORTH

NUMBER ONE BURNETT PLAZA

FORT WORTH, TEXAS
817 391-8105
EDison

The Bank Wire

6-9161

'

Mr.

Sanders

&

NATIONAL

Mrs.

W.

T.
Hastings, Virginia
Bank, Norfolk

National

Mr.

&

Mrs.

Harry

A.

Michels,

New

Allen

&

Company,

York

Company

Members New York Stock
REPUBLIC

&

Exchange

BANK

BLDO.

Dallas

v

.'

F. Dunston, Paribas Corporation; Brainerd
H.
Whitbeck, First Boston Corporation, New York

E.

UNDERWRITERS-DEALERS

Trading Markets in:
HOUSTON

DISTRIBUTORS

NATURAL

Mr.

&

Mrs.

J. Coleman Budd, Jr., RobinsonHumphrey Company, Atlanta

GAS

CORP.
&

common

preferreds

HOWELL INSTRUMENTS

CORPORATE & MUNICIPAL

LONGHORN

PORTLAND

CEMENT

SECURITIES

LONE

STAR

BREWING

PEARL
TEXAS

specializing in:
ALL SAN

PHARMACAL

CO.

CO.
CO.

CENTRAL POWER & LIGHT
4% preferred

ANTONIO AND SOUTH TEXAS
BANK

BREWING

HOUSTON LIGHTING
POWER CO.

STOCKS

'

&

4% preferred
and

other Southwestern

Securities

Flnk, Hobbs

&

Habt,

inc.

Members
Midwest Stock
Pacific
National

Bank

of

Coast

Commerce

Trading, 51 2-571 -0905




Exchange

Stock

Exchange

Bldg., San Antonio, Texas

Municipal

—

CA

7-6215

51 2-571-0937
Mr. &

Mrs.

George Fox, Piper, Jaffray <fe Hopwood,
Minneapolis

E.

W.

S.

Lee, .Valley Natonal Bank, Phoenix; Wayne
Glover, United California Bank, Los Angeles

Volume 198

Gordon

R.

John

Number

6328

.

.

.

The Commercial and Financial Chronicle

Thomas P. Phelan, Pacific Coast Stock Exchange, Los Angeles-San Francisco; Palmer York, Jr.,
York <£ Co., San Francisco; Mrs. Thomas P. Phelan; George J. Otto, Irving Lundborg & Co.,

Peel, Burgess & Leith, Boston, Mass.;
Wasserman, Asiel & Co., New York

San
✓

Mr.

Mrs.

&

John

R.

97

W.

Hughes, Royal Securities Corporation, Montreal; Mr.
Dominion Securities
Corporation, Montreal

&

Mrs. Stanley

E.

San

UNDERWRITERS

•

DISTRIBUTORS

•

&

Mrs.

Louis

J.

Kocurek,

Rauscher,

Pierce

&

Co.,

Inc.,

San

Antonio;

Charles

C.

Antonio

Nixon,

•

Mr.

Jr.,
First
Southwest Company,
Milton E. Allison, M. E. Allison & Co.,

Jackson,

C.

Dallas;

Francisco, George A. Newton, G. H. Walker & Co., St. Louis; Mrs. George J. Otto;
Col. Oliver J. Troster, Troster, Singer & Co., New York
'

Pierce,

BROKERS

•

Jr.,

DEALERS

Rauscher, Pierce & Co., Inc., Dallas; Mr. & Mrs. Charles C. Pierce, Rauscher, Pierce & Co., Inc., Dallas
•

'

■'

'

•'

'

•

CORPORATE

■'

'

'

AND

'

MUNICIPAL SECURITIES

$m <j&rUcma, tfexaA
SAN ANOELO

McALLEN

HOUSTON

MEMBERS
NEW

AMERICAN
John

M.

Lokay, Shearson, Hammill & Co., New York; Frank J. McCormack, H. Hentz & Co., New
York; A1 Parker, Shearson, Hammill & Co., New York; Charles L. Hewitt, Fahnestock & Co., New York




YORK
STOCK

STOCK

EXCHANGE

EXCHANGE

(ASSOC.)

namooxtf^

tfysmmmmmmmmmmmwmtwMM

The Commercial and Financial Chronicle

98

Mrs.

&

Mr.

Orlando

Mrs.

&

Mr.

Middleton

Mr.

&

Mrs.

C.

S.

C.

Alan

Brewer, Phelps, Fenn & Co., New Yrn-k;
Rose, Laird, Bissell & Meeds, New York

';

;..."

;•

'■"

Kaufman, Rodman
Chicago

<ft

c-'-vC.

1

•"

Mr.

Renshaw,

■

&

1

B.

Browne,

Mr.

&

Bank

Mrs.

of

E.

Mr.

N. T. & S. A., San Francisco;
Prescott & Co., Cleveland

America,

A.

Legros,

&

Mrs.

York;

.

.

William

William

Thursday, December 26, 1963

.

R.

Salomon, Salomon Brothers & Hutzler, New
Wallace, Mellon National Bank, Pittsburgh

J.

:'v,-

Mrs. P. F. Koenig, Koenig, Keating & Stead,

Mr.

Mrs.

&

Chicago

Alex.

Seidler, National
Bank, Newark

Mr. &

State

Mrs. A. Lee

Shapleigh, Smith, Moore & Co.,
St.

HILL.

SERGE

First

In Attendance at Convention

National

HENDRIX. JAMES R.
Hendrix, Mohr & Head, Birmingham
HENDRIX. WILLARD R.

HALL, GEORGE W.*
<-

INVESTMENT

BANKERS

Wm.

Pollock

E.

&

New York

Co.,

Equitable

HALLIBURTON. GUS G.*
Equitable Securities Corporation,

Direct Wire to
V. F. NADDEO

&

Walston

CO., NEW YORK

HESS,

L. F. Rothschild & Co.,
HETTLEMAN. PHILLIP*

&

HANSON.

Co.,

York

'

MURRAY

'

HARDING.

POLLOK &

Coffin

WILLIAM

&

Burr.

Tho

FOSDICKJnc.

HARK1NS.

'

HOUSTON

THE

SOUTHWEST

BUILDING

Harkness

Alex.

•

DISTRIBUTORS

Trust

•

New

Brown

DEALERS

HASSMAN.
A.

G.

&

Eastman
New

Municipal Bonds

tier

Harris
HA WES.

Corporate Securities

ROBERT

Trust

&

CApitol 2-9944

Dean

EDDE
Witter

Savings

Bank,

Savings Bank,

CHARLES

HEITNER,

OF THE

SOUTHWEST

BLDG.

Shearson,

HOUSTON 2, TEXAS
TELETYPE:

Municipal 113 571-1186.




Corporate 713 571-2416

T.
*

C.

FIRM

T.

Co.

HORTON.

WESLEY

THAT KNOWS THE

New

'

Boston

SOUTHWEST

CORPORATIONS

York

EPPLER, GUERIN & TURNER, INC.
MEMBERS

Co.,

NEW

YORK

STOCK

EXCHANGE

Omaha

E>

&

&

New

York

Fidelity Union Tower, Dallas, Texas
Phone: Rl 1-3441

Teletype: 214 899-8480-Corp. 214 899-8487-Mun.

/

C.

Mr/&

Co.,

Co.,

Mrs.

Des

Moines

INVESTMENT

Colket

/

Inc.,

,

Report,

&

E.

Distributors.

M.

Henderson

Denotes

&

RETAIL ACCOUNTS

Baltimore

F.

Hammill

HENDERSON.

Louis

Penington

'.

NORMAN

HELLER. JAMES

Securities

Colonial

Chicago

Yates, Heitner &. Woods. St. Louis

BANK

Union

Craigmyle, Pinney,
Philadelphia

New York

Storz-Wachob-Bender

1330

St.

HORTON. ARTHUR

Chicago

HEFFERNAN. PAUL

HEIDER.

HORNING. BERT H.
Dempsey-Tegeler & Co..

Chicago

Co., Chicago

The Bond Buyer,

J.

G.*

INSTITUTIONS

K.
&

E.

New York

¬

MILTON J.
American National Bank,

HAYS,

JOHN

Morgan Guaranty Trust Company,

DEALERS

New Orleans
C.

HAYES. PHILIP E.
U. S. News & World

TELEPHONE

HOPKINS.
~f

SERVING
/

HAYES.

Members Midwest Stock Exchange

York

York

New

HAYDEN. DONALD W.
Baumgariner, Downing & Co.,
'

York

W.*

of Georgia, New York

HARDIN H.

Harris

•

& Sanford,

&

York

G.*

&

Trust

J.

HOOPER. Jr.. WILLIAM U.*
Mead, Miller & Co., Baltimore

York

THE

Alester G. Furman Co., Greenville
HATCHER, LLOYD B.*
White. Weld & Co., New York
/
l-_a

Dillon,

CHARLES

'

IIATTIER, Jr.. GILBERT*

•

TOM

&

Glore, Forgan & Co., New
HOLMYARD, HAROLD R.
Hayden, Stone & Co., New

HILL, KENNETH E.*

Co., Chicago
WILLIAM T.*

HAWLEY.

New

■

<

Jr.,

HODGE,

Liberty National Bank, Oklahoma City

HASTINGS,
Virginia National Bank, Norfolk
HATCHER, III, CLIFF C.*

TEXAS

Co.,

WILLIAM

Hollywood

M.*

G.

World-Telegram,
ELMER

Becker

Read &

Company

HILBORNE.

Sons, Baltimore

CHARLES

York

HOBBS,

■

HICKEY, III, MATTHEW
Hickey & Co., Chicago

ROBERT B.
& Hill, Boston

HARRINGTON. FULLER A.
Harrington & Co., Jackson
HARRIS, DAVID J *
Bache & Co., Chicago
HARRIS. M. CHESTER*
Henry Harris & Sons, New York
HARRIS. WILLIAM C.
Hams & Partners, Toronto'
HARVEY, Jr., F. BARTON

2. TEXAS / PHONE CAPITOL 4-9221

HASKELL,

UNDERWRITERS

Dillon,

HIBBERD.

Company, Chicago
CHARLES B.
Co., San Francisco

Elyth &

OF

G.*

Boston

Illinois

HARKNESS.
BANK

HEYES. FRED L.*

HARDY. Jr.. EDWARD K.

New York

Hoban, Chicago
WILLIAM G.*
Fupk, Hobbs & Hart, San Antonio

York

Fahnestock & Co., New York

Washington

S.*

Co.,

Sun-Tattler,

PHILIP

McMahon

New

HEWITT. CHARLES L.

Investment Bankers Association

EDDLEMAN,

'7

.

HOBAN, EDWARD F.

Hettleman & Co., New York
HEWARD. JAMES W.*
Butcher & Sherrerd, Philadelphia

R.*

New

Jr..

^

The First National Bank of Chicago.
New York
v :
:

Co., New York
WALTER W.*

HAMILTON. ROBERT*

Shields

HISS,

&

Laidlaw & Co., New York
HANRAHAN, PAUL B.* >
;
Hanrahan & Co., Worcester

'

HANSEL. DOUGLAS

440

Corporation

&

New York

Louisville

TOM E.

Hollywood

KENNETH S.

HERMAN.

JOHN

Wertheim

HINDS.

Nashville

Nashville

State-Municipal & Corporate Securites/Local Bank & Insurance Stocks

Securities

City Bank,

HILLIARD. HENNING*
J. J. B. Hilliard & Son,

HILSON.

Continued from page 95

Louis

BANKERS

'

\l

;v

Volume

Mr.

Mrs.

&

6328

Texas

Securities

HOWARD. GEORGE H.
Harris. Upham & Co.,
Ball,

FRED

Burge

HUGHES.

Lord.

ALBERT

Co.,
New

Dallas

JACQUES, JAMES
First

R.*

JENKS.
Montreal

HUGHES, W. SHANNON
Raffensperger, Hughes & Co.
Indianapolis

Colonial

HUNTER.

DAVID

Inc.,

Boston

Pittsburgh

The

W.

David

MAITLAND

JONES,

Los

York

Pittsburgh

F.
National

National

Co.,

Chicago

New

Jones

&

>

York

New

>

KAUFMAN.
Rodman &

Templeton,
•

Kaufman

Bank

,

&

Mrs.

New

& Co.,

Exchange

New York

TEXAS

York

NATIONAL

HOUSTON

KIMBALL. RICHARD*

BANK

BLDG.

Corporation,

2,

'

Southern

HARRY

National

TEXAS

Smith,

CApitol 8-8221

Teletype 713 571-1060

Bank,

Warren

W.

E.

York

&

Co.,

Allentown

KLEIMAN, EDWIN J.
Vilas & Hickey, New York

;

KLEY.

.

^

>

FRANK

Kreeger & Co.,
KLINGEL. JAMES E.
Jones,

Juran

Puerto Rico, San Juan

&

Moody,

Washington
O

Paul

St.

KNEASS.

GEORGE B.*
Inter-American
Development

Bank.

Washington
KNIGHT, NEWELL S.*
First National

Norfolk

Co.,

Members Midwest Stock

F.*

Hanseatic

&

BANKERS

York

Co., New York

Ingen

York

KINTZEL.

C. G.*
Renshaw, Chicago

Bros

JFrederkirty
INVESTMENT

Atlanta

York

KEATIN. LAURENCE C.
Goodbody & Co., New
KEITH. CLYDE H.

&

EDWIN
Van

J.

Citizens

New

Fridlcy <£

Lynch, Pierce, Fenner &
Incorporated, New York
KINGSBURY, JAMES M.
Dominick & Dominick, New York
KINSEY, III, BOYDEN

KAUFMAN, GEORGE M.

Francisco

Hutton

SECURITIES

MUNICIPAL

York

Merrill

E.*

Co.,

New

KENNEDY.
White, Weld & Co., Chicago
KENNEDY, WALTER V.
John C. Legg & Co., New York
KERESEY, JAMES F.

E.

AND

T.*

&

Co., New Yofk
JOHN X.

New

Angeles
GRAHAM

Banker,

FRANK

Devine

CORPORATE

,

KIEPER, HENRY J.

E.*

Pittsburgh

Bank,

American

J.

B.

'

Banco Popular de

Baker, Watts & Co., Baltimore
JACKSON, Jr.. W. C.*
First Southwest Company, Dallas
JACOBS. ALGER J.* <•

C.

KEZER.

JONES. RICHARD W.
■
Mitchum, Jones & Templeton,
Los Angeles
JOSEPH. HERMAN B.
Joseph. Mellen & Miller, Cleveland
KALISCH, Jr.. ABNER*

,

'Denotes Mr. &

&

WILBUR

Johnson,

&

,

Wertheim <fe Co., New
KEUSCH. ERNEST E.

Howard,

&

JONES. HARRY T.
k
The'Miami News, Ft. Lauderdale

IVORY. Jr.. C. J.

San

Sherman

Noyes
Jr..
&

Mitchum,

York

Co.,

Milwaukee

DAVID

Mellon

T.

Simpson, Emery &
JACKSON. JOHN J.

Co.,

Chicago

Donaldson. Lufkin & Jenrette, New York
KERESEY. THOMAS M.*
Model, Roland & Co., New York
KERR. WILLIAM D.*

V

JONES. Jr., EDWARD D.
Edward D. Jones & Co., St. Louis
JONES. Jr., GEORGE E.*

Langley & Co., New York

Crocker-Citizens

A.

Burnham

New

Company,

The

KENNEDY.
,,

W.

Johnson

JONES.

Stieglitz,

F.

Nagel,

JOHNSON.

ILLOWAY, LAWRENCE B.
New York Hanseatic Corporation,
New

FRED

R.

Boston

JOHNSON, WALLACE D.*

Francisco

C.

Howard,

Denver

HYDE, J. HINDON
IJAMS,

FRANKLIN

Milwaukee

Dawson,

HUTCHINSON. WILLIAM N. L.
Mitchum, Jones & Templeton,

&

&

Bank,

St. Louis

KNIGHT. PEYTON H.
Emanuel, Deetjen &
KNOOP. A. PETER*

York

'
Co.,

New

York

Underwriters

,

Taylor, Rogers & Tracy. Chicago

Auchincloss, Parker & Redpath,
New

•

Distributors

York

KNOX, JOHN T.
Federal

Land

Banks,

New

KOCUREK. ARNOLD J.*
Rauscher, Pierce & Co.,
KOCUREK, LOUIS J.*
Rauscher.

Rauscher, Pierce
' Member

'
-

-

-

-

New York Stock

Exchange

American Stock

'

&
•

Co., Inc.
.

*

KOERNER.
&

KOLLS,

Midwest Stock Exchange

,

&

•

Dealers

MRS.

MARGARET

Investment

Bankers

H.

Morton

&

r

ok

e

r

s

•

Distributors

Cleveland

H. STANLEY
Shearson. Hammill &

KULP.

A.

Howard

Co.,
A.

New

G.

Bros.

&

Boyce,

III.

Preferred Stocks

—

&
'

Common

.

Rico

LAUN.
F

New

1, Texas

Riverside 8-0111

York

G.*

Hornblower

LEACH.
New

fir,

Weeks,

RALPH

LEE.

Lubbock, Midland, Odessa,




Albuquerque, New Mexico

and

Jr.,

Fayetteville, Ark.

Valley

_■

„

,

G.

Fmerv

&

CHARLES
Weld

P. O. Box

York

&

Co.,

Pittsburgh

C.

Co.,

New

York

/

S *

National

6031, Dallas, Texas 75222

Trust, Company,

,

BYFOFD

White

Chicago
New

F.

Guaranty

York

LEE. E.

Tyler,

DEPARTMENT

Moseley fir Co.. Chicago
LAWLOR. Jr., WILLIAM J *

LEE.

San Antonio,

BOND

Co., Kansas City

HAROLD

Simpson

Austin, Fort Worth, Harlingen, Houston,

for

S.

Morgan

Dallas

Bank

JOHN

Hutton

F.

LAWSON. JOHN S.
Discount Corporation,

Mercantile Dallas Building

IN DALLAS

Company,

York

Puerto

Stocks

BANK

W.

Kirkpatrick.

DAVID*
Government Development

E

—

Baltimore

BEVERLY

LARSON.

LATSHAW.

Bonds

Dallas

WALLACE

LAPSLEY. JOHN W.
Morgan Guaranty Trust

Utility, Railroad and Industrial

NATIONAL

.

—

Sons.

Clark, Landstreet
Nashville
-

Public

&

P.
&

W.

LANDSTREET.

Mutual Investment Funds

FIRST

P.*

Orleans

LESLIE

LANAHAN, Jr..

New

Yo;k

Labouisse, Frledrichs

Fdwards

Stein

New

Philadelphia

Company,
JOHN

Will

LAGONI.

Company Stocks

r

Co.,

MOYER*

Wellington

Municipal Bonds

_

New York

KFUSEN,

LABOUISSE.

Bank and Insurance

St. Louis

*

Co.,

KRUSE. JOHN A.
Prescott & Co..

B

E./■

Association.

Washington

W.

v

Authority Bonds

IRVING

KRUMM. ROBERT R

Underwriters

Antonio

Co., New York

KRAUSE. JOHN P.
Reinholdt & Gardner,

Exchange (Associate)

San

Co.,

State, Municipal and Housing

Antonio

KOENIG. PHILIP F.*
Koenig, Keating & Stead, Chicago
■"/•'Allen

'

Pierce

York

San

Bahk,

Phoenix

Continued

on

pagr

101

Telephone 214 Riverside 8-5471

York;^.

Weeks & Co., New York

'

>

;■

Ripley & Co.,

..

JOHNSON, ROBERT M.*

,

Halle

Chicago

Barcus, Kindred & Co., Chicago
JOHNSON, HOWARD C.*
Nnternational Bank, New Y,ork
JOHNSON. JOSEPH T.

HUNTER. HERBERT D.*
Watling, Lerchen & Co., Detroit
HURLEY. GERALD L.
Barr Brothers & Co., New York
HURLEY. WILLIAM L.
Baker, Simonds & Co., Detroit
HUTCHINSON, FRANK B.
Hutchinson, Shockey, Erley & Co.,
Chicago
HUTCHINSON. TIMOTHY
Elkins. Morris, Stokes & Co.
Philadelphia

San

&

JOHNSON.

C.

W.*

McKelvy & Co.,

Hettleman

Hettleman,

G. Bruce LeibBaker,

KEMP, Jr., G. S.*
Abbott, Procter & Paine, Richmond
KEMPER, JOHN A.*
John A. Kemper & Co., Lima
KENDALL, B. W.*

Dallas

R.*

Hallowell, Sulzberger, Jenks, Kiikland &
Co., Philadelphia
JOHNSON, DAVID T.*
Johnson, Lane, Space & Co., Savannah
Eaton

Humphrey,

Distributors,

Phillip

KELLY, EDWARD J.
Carl M. Loeb, Rhoades & Co., New York

.

MORTON

JOHNSON.

HUMPHREY, Jr., ARTHUR F.*
&

Company,

LLOYD

Boettcher & Co.,

Jr.,

HUNSAKER. Jr.. JEROME

Harriman

F.*

Southwest

JAMMER,

&

Hulme, Applegate
Pittsburgh

Co.,

KELLOGG, III, JAMES C.*
Spear, Leeds & Kellogg, New York

S.*

Shaw, Hooker & Co., San Francisco

Cleveland

JAMES J.*
Co., New York
HUGHES. JOHN R.*
Royal Securities
Corporation,
Drexel

Philadelphia; W. L. Lyons, Jr., W. L. Lyons &
W. Chandler, W. L. Lyons & Co., Louisville

KELLEY, ROBERT I

HARRY A.
Co., New York

&

JACOBUS, ROYDEN E.
Vilas & Hickey, New York

York

Co.,, New York

Abbett &

HUGHES,

C. Collings, Jr., C. C. Collings & Co.,
Louisville; Mrs. C. C. Collings; James

JACOBUS. MELVIN

W.*

& Kraus,

Chronicle

Clifford

Bache

B. F.

Union

HUDSON.

The Commercial and Financial

.

JACOBS. Jr..

Group I. B. A.. Austin

Dallas

.

;:"V

.

HOUSER. C. WILLARD*
HOUSTON.

.

R. Biddle, Philadelphia
Bank, Philadelphia

.raf'

•

Number

Peyton

National
'

.

198

Teletype 214-899-8664

The Commercial and Financial

&

Mr.

Mrs.

Charles

E.
Co.,

Mr.

&

Mrs.

Glenn

N.

Company,

Mr.

&

Mrs.

J.

J.

&

Mrs.

Lempereur,
Boston

Walsh.

John

Parcells
'

r

,

Keystone

Walston

J.

Inc., San

Mr. &

&

Co.

Inc.,

Mr.

&

David

H. Callaway, First
Corporation, New York




Cleveland; Mr. & Mrs. J. E. Bryan, Cleveland Plain
Leonard Flynn, McDonald & Co., Cleveland

Mrs. H. J. Sheedy, McDonald & Co.,

H.

Michigan

Mr.

&

First

Mr.

Mr.

Mrs. John F. Moran, Cooley

Mrs.

J.
&

E.

Co.,

Froelich, Walter, Woody & Heirnerdinger, Cincinnati: R. C. Chapman, Fulton, Reid
Cleveland; Mr. & Mrs. George S. Wade, Roose, Wade & Co., Toledo

*'

:

Mrs.

&

Addison

Lestrange

,

& Co., Hartford; Mrs. William C. Douglas; Lawrence W. Morgan,
Lord, Abbett & Co., Chicago; William C. Douglas, Douglas Securities Inc., Chicago

Berryman, Marine
Trust Company of
New York, Buffalo; Philip M. Hiss,
National
Bank
of
Chicago

R.

Western

Dealer,

,

of

Thursday, December 26, 1963

....

.

Homer

Gardiner, Irving Lundborg & Co., San Francisco; William C. Richardson, Birr, Wilson Co.,
Francisco; Mrs. John J. Gardiner; John W. Turner, Eppler, Guerin & Turner, Inc., Dallas;
Robert P. Mann, Davis, Skaggs & Co., San Francisco

Cleveland;

Chicago

/

Mr.

A.

Exley, Chas.
Detroit
1

Chronicle

Mrs. Paul

&
•

Mr.

&

Mrs.

&

W.

Co.,

Arthurs, Arthurs,
Pittsburgh

B. Hanrahan, Hanrahan
Worcester

Charles

R.

Corporation,

Treuhold,
New York

&

Paribas
/

Co.,

Volume

Number

198

6328

.

.

.

The Commercial and Financial Chronicle

Mr.

Ralph J. Powelson, Leedy, Wheeler & Alleman,
Orlando; Joseph G. Petersen, J. G. Petersen
<ft
Co., St. Louis

Lawrence
Mrs.

B.

Betty

Mrs.

&

Charles

Illoway, New York Hanseatic Corporation, New York;
(Wellington Company), Philadelphia; A. Moyer
Wellington Company, Philadelphia

M.

Werly, Putnam Fund Distributors, Boston; Mr.
Singer, Deane & Scribner, Pittsburgh

(American

Kulp,

Securities

Corporation),

New

E.

Hutton

&

York

LEECH,

FREDERICK
Arthurs, Lestrange

Loewi

C.

Co.,

&

LEGROS.

EMILE

Prescott

&

LITTEN,
The

Baker, Weeks"^®* Co., New York
LEITH, Jr., R. WILLIS
Burgess & Leath, Boston

A.

Jr..

LEUSTIG.
Murch

Co..

Carlisle

York

Becker &

Denotes

Mr.

&

Co.,

New

York

J.

Howard, Boston

&

New

New

Mrs.

C.*

Davis, Skaggs &
Discount

&

Curtis,

,

1924

Bache

P. A.
Dealers*

WILLIAM
&

Boston

Co.,

Co.,

New

MATTISON,

York

Teletype 305




275-1842

York

New

&

New York

& Co.,

HARRY A.
Co., New York

MILLER. CHARLES M.

Mullaney, Wells & Co., Chicago
GEORGE W.*
First National Bank, Chicago

MILLER.
The

Distributors,

MILLER.

BERTRAND

GLENN R.
& Co., Chicago

MILLER. LESTER T.*

& Co., Hartford
""
VINCENT J.
Dillon, Union Securities & Co.

Joseph,

„

Mellen &

J.

C.

MINTKESKI.

■

MELTON, Jr.. ANDREW J.*
Smith, Barney & Co., New
MENGDEN, JOSEPH M.*
National Bank. Detroit

Miller,

Cleveland

New

EUGENE

Bank

Chemical

York

New

A.*

York

Trust

Jr..

MIRALIA.

Kuhn,

DAVID T.*

Loeb & Co.,

New York

Continued

on

page

&

of Federal Agencies

York

Department

Atlanta

JOSEPH*

Co.,

Northern

Boston
C.

Trust

Company,

BIdg.

/

Miami 32, Florida
3-5318

Bell Teletype 305 696-4620

Chicago

GLEN

New

York

Vance, Sanders & Co., Boston
McCOMB, FRANCIS S.*
Wagenseller & Durst, "Los
McCONCHIE. T. RUSSELL

Virginia

Ingraham

Municipal Bonds

Bond

National

Bank,

The

,

McDonald

National
john a.
&

Bank,

JACKSONVILLE,

FLORIDA

Charlottesville

STUART

First

Mcdonald,

JACKSONVILLE

Angeles

McCONNEL, Jr., W. BRUCE*
Singer, Deane & Scribner, Pittsburgh
McCORMACK. FRANK J.
H. Hentz & Co., New York
McCOWN.

NATIONAL BANK
OF

Memphis

-

Co., Cleveland

^

i

Wire
Member

System

Federal

Organized 1903

Bell Teletype 305 733-0398

Telephone 355-1711
—

Co.,

York

MERRILL, BARRANT V.
Pershing & Co., New York

Bonds

,

Jr.. L. GORDON
Wheat & Co., Richmond

MILLER.

Alstyne, Noel & Co., New York
MAXWELL, J. M *

INCORPORATED

Bell

Allen

Dallas

Walston

York

Co.,

Van

LEEDY, WHEELER & ALLEMAN
FRanklin

Putnam

MELLIN,

&

Haas

MICHELS.

..

& Dudley,

III, THOMAS W.*
Neuhaus & Co., Houston

Dempsey-Tegeler & Co..
McCANDLESS. JOHN A.*

_

Co:, New York

MUNSON*

McKinney

C.

U. S. Government Securities

M.

New

MAWDSLEY. LORRIN

The

2-5161

G.

York

CHARLES H.
D. White & Co., New York

MAYER,

GArden

Smithers &

McTEAGUE.

New

CHARLES*
Folger, Nolan, Fleming & Co..
Washington
MASON. LESTER*
Burroughs Clearing House, Detroit

Estabrook

Orlando, Florida

Hirsch

MEZGER. WILLIAM W.

Digest. New York

MATHEWS, Jr., R. C.*
Trust Company of Georgia,

CORPORATE SECURITIES

504

MEYER, Jr., MAURICE*

E.

Co., San Francisco

MATHRES, LLOYD C.
Goodbody & Co., New

MUNICIPAL BONDS

Orange Ave.

S,

'

■

Eastman

S.*

Corporation,

MARCUSSON.

R.

North

F.

GROVER

.

York

MARCKWALD. ANDREW K.*

Underwood,

One

.

New

Detroit

MASTERSON,
ESTABLISHED

New York

Boston

MASPERO,

BUSINESS

Co.,

1
Cleveland

GEORGE
Bache & Co., New York

MEYER.

THOMAS H*

&

CHARLES b.
Turben & Co., Cleveland

MARTIN.

Webber, Jackson

York

Merrill,

Taylor & Co., Beverly Hills

MILTON A.*
Eennett, McDonald &

Investment

York

MERRILL,

MANN. ROBERT P.*

MARLIN,

Kennedy,

Shields

New York

METZNER. RUSSELL H.
Central National Bank,

b.*

McLELLAN. PHILIP F.*
Massachusetts Life Fund

Chicago

Stephen C. Reynolds, Hemphill, Noyes

Brower, Wellington Company, Philadelphia; Mrs. A. M.
(Wellington
Company), Philadelphia;
Philip
P. Gaughan,
De Haven & Townsend, Crouter & Bodine, Philadelphia

MCKINNEY, RICHARD b.

GORDON S.
Co., Cleveland

&

Mrs.

Clark, Dodge & Co., New York

Almon,

Louisville

GEORGE

WILLIAM

&

Bruce

Kulp

david

McKINNEY,

Magnus & Co., Cincinnati
,
MAGOUN, FRANCIS P.*
The National Shawmut Bank,
Manley.

Francisco

Birmingham

McLeod, Young, Weir & Co., Montreal
MACKEY, JACK B.
Calvin Bullock. Ltd., Los Angeles

MANLEY,

&

Regan

LYONS, Jr., W. L.
W. L. Lyons & Co.,

MAGNUS,

Mcelroy,

McKEE.

LAWRENCE
Co., New York

MACKLIN. Jr.,

NELSON*

Lubetkin,

A.

McGRATH, GORDON R.*
Winslow, Cohu & Stetson,

Co., New York

MacDONALD.

York

LUBY. JOSEPH

Co., New York

&

New

Dallas

&

Allen

McDonald

ANDREW

Jr.,

Paine,
*

Co.,

Co., San
LUBETKIN, LLOYD E.

Blyth & Co., New York
G.

Philadelphia

Co., Milwaukee
JOHN M.

Schwabacher

GEORGE

LEWIS, Jr., JAMES P.
A.

&

&

MABIE, WILLIAM D.
A. G. Becker & Co.,

New York Securities Co., New York
LOVEjLL, C. EDWIN*
McDonald & Co., Cleveland
LOWELL. Jr.. JAMES R.
Shearson, Hammill & Co., New York
LOWRY, CHARLES F.

Angeles

New

Chicago

Company,

&

Eacon &

LOUD,

Cleveland

Jacquelin,

Trust

Shearson, Hammill
LORD,

WALTER B.

&

R.

Becker

Loewi

P.*

&i Co., Los

G.

LOKAY,

FRED F.*

&

LEVERING.
LeVIND,

B.

Ryons

CHAPIN

Northern

LOEWI, J. VICTOR*

LEMKAU, HUDSON B.
Morgan Stanley & Co., New York
LEMON, JAMES H *
Johnston, Lemon & Co., Washington
LEMPEREUR, GLENN N.*
The Keystone Company, Boston

Lester,

LYONS,

'

LOCKETT. JOSEPH F.*
Townsend, Dabney & Tyson, Boston
LOCKWOOD. FRANK J.

Cleveland

LEIB, G. BRUCE

LESTER.

-

Los Angeles

LIVINGSTON. J. A.*
The Evening
Bulletin,

York

A.*

Co.,

Milwaukee

Co.,

LINDMAN, RAY H.
O'Melveny & Myers,

Pittsburgh

LEEDY, Jr., LOOMIS C.*
Leedy, Wheeler & Alleman, Orlando
LEEMING, CHARLES E.
The Chicago Tribune, New

&

L.

.

EUGENE

Wertheim

Mr.

Fisher,

Co.,

McGLADE,

Bank,

lynn, henry S.*
Sterne, Agee & Leach,

WILLIAM

'

F.*
National

LYNN.

LIEBMAN,

Richmond

Co., New

Mercantile

York

New

LICKLE, WILLIAM C.
Laird, Bissell & Meeds, Wilmington

LEE, JAMES J.
W.

LYNE. "LEWIS

LEWIS, MILTON F.*
A. G. Becker & Co.,

N.

McDonnell, charles e.*.
McDonnell & Co., New York

DOUGLAS H.
Goodbody & Co., Miami

99

Charles

York

LUDEMAN,

LYNCH, III, THOMAS*
' Moore, Leonard & Lynch. Pittsburgh

LEE, Jr., GARNETT O.
Anderson & Strudwick,

Mrs.

Qeorge J. Varley, Chase Manhattan Bank, New York; John E. Beebe,
Chase, Manhattan Bank, New York; Mrs. William N. Bannard,

Brower

Continued from page

&

The Bank Wire

Deposit Insurance Corporation

102

The Commercial and Financial Chronicle

102

Mr.

&

Mrs.

William
John

Richard W.

Mr.

&

Lockett

Shelton,

Republic

National

Bank,

Dallas;

&

Jones, Mitchum, Jones & Templeton, Inc., Los Angeles;
George Jones, Mitchum, Jones & Templeton, Inc.,
Los Angeles

Mrs.

.

.

Thursday, December 26, 1963

Charles

S. Bishop, Manufacturers Hanover Trust Company, New
York; Garnett O. Lee, Anderson & Strudwick, Richmond, Va.;

Mrs.

A. Stevens, J. C. Wheat & Co., Richmond, Va.;
C. Senholzi, Chase Manhattan Bank, New York

.

George C. MacDonald; J. Ian Crookston, Nesbitt, Thomson
Co., Toronto; George C. MacDonald, McLeod, Young, Weir & Cov
Montreal; Mrs. J. Ian Crookston

Halsey

Mr.

&
Mrs.
Charles
Martin,
Folger,
Nolan,
Fleming
&
Co.,
Washington, D. C.; Arthur S. Friend, Folger, Nolan, Fleming & Co.,
Washington, D. C.

Allen

Brewster,

&

Company,

New

York

M. Bergman, Allison-Williams Company, Minneapolis; Robie
Mitchell, Mitchell, Pershing, Shetterley & Mitchell, New York;
Lynn Crossley, Municipal Finance Officers Association, Dallas

Oscar
L.
E.

v.\
NIXON,

STANLEY E.*

In Attendance at Convention
C. T. Williams & Co.
INCORPORATED

United States Government and

Public

Municipal Bonds

Utility and Industrial Issues

Active Markets in Local Securities

FIDELITY BUILDING

BALTIMORE

Telephone: PLaza 2-2484

—

Bell Teletype: 301

Continued from page 101

1, MD.

955-0326

New

Telephones

Branch

Office
Bell

to

—

New York and Philadelphia

Grymes

Bldg., Easton,

Teletype —301

Md.

822-4190

York

MOHR.

Jr.. SIDNEY J.
Hendrix, Mohr & Head,
MORAN. JOHN F.*

.

Montgomery

York

New
Trust

J.

New

&

FRANK

New

PADUCAH, KY.

,

CUMBERLAND, MD.

and




NEW

NASHVILLE, TENN.

other

YORK

STOCK

EXCHANGE

leading exchanges

A.*

O'DAY,

&

Co.,

Digest,

New

Trust

O'KEEF,
The

Securities

ALLEN

New

&

WALTER T.
& McKinnon,

New

York

ROBERT H.*

Marshall

Company,

Milwaukee

O'LEARY. EDMUND G.
Eastman. Dillon, Union Securities & Co.,

Corporation,

York

J.*

Contnued

Co., New York

on

page

York

Corporation,

SPECIALISTS

Richmond

RAY

Tampa

&

Chicago.
:

Co.,

Atlantic

Illinois

National

'

Bank.

•,

James

NASH.

National

G.

NARES.

Bank, Jacksonville

JOHN

&

Sons,

New

CO.

York

BALTIMORE / PIKESVILLE / NEW YORK

M.
Bankers

Association,

NELSON, EDWARD G.
Clark, Landstreet & Kirkpatrick,
Nashville
Denotes

JOHN C. LEGG

PETER

Richardson

Washington

*

:::

New Orleans

F.

Continental

Chicago

•=.

F.*

Dinkins

in

INSURANCE

Baltimore

Inc.,

/ '//

Basking Ridge, N. J.

MURPHY. JOSEPH D.
Stifel. Nicolaus & Co.,
LEE

//

F.

Sons,

Mr. & Mrs.

York

Company, New York

Thomson

York

Co.,

DANIEL

O'flARA.

Nashville

&

J.

RICHARD

Investment

MEMBERS OF

Interstate

NIX.

MYHR, ANDERS F.

^

Bradford

/

'

Thalmann

B.*

Securities

Webster

Garrett

MURPHY,
Ladd

Telephone, 727-8400
NEW YORK, N. Y.

JOSEPH C.
Co., New York

&

Ladenburg.

Co., St. Louis

MULLANEY. PAUL L.
Mullaney, Wells & Co., Chicago
MULLANEY. THOMAS
The New York Times, New York

MYERS.

LOUISVILLE, KY.

C.

Greenville

Co., Kansas City

York

Publishing Co.,

MURPHY. HAL#
The Traders Guide.

Baltimore, Md. 21201

J.

&

O'CONNELL, HOMER

New

MURPHEY, HI. DAVID R.*
Pierce, Wulbern, Murphey,

One Charles Center,

Co.,

NUNNALLY. McKEE
Courts & Co.. Atlanta

R.

York

Robert

1853

&

&

W.
h

The Northern

Riter &

MUNFORD. Ill, BEVERLEY B.
Davenport & Co., Richmond

Established

Wrlker

F1"""*

NUGENT,
Mabon

N^rris

FRANK

Jr., T. BALLARD
& Son, Louisville

MULLIGAN.

SteinBros.&Boyce,Inc.

FRANK

GEORGE

M.

Tr°t

Philadelphia

,

New York

MULDOWNEY. JOSEPH
Scott
& Stringfellow,

SECU

NORTH.

L.

MOWER, Jr., EDWARD B.*
Newhard, Cook & Co., St. Louis
Stone

RYLAND

H.

Bank/

Hilliard

B.

MUHLFELD.

a

Co.,

NIELSEN, H. L.
Layestment Dealers'

EDWARD

List

J.

Ed^av

FRANK

Charlotte

Associated Press,

Blue

BALTIMORE

Company,

Fayetteville

MORSE, WALTER E.*
Lehman Brothers, New
MORTON. ROALD A.
MORTON,

G.

New York

EDGAR M.*

NISBET, Jr., W. OLIN*

MORRIS. JAMES L.*
Powell, Kistler & Co.,
The

Louis

St.
Jr.,

NEWHARD. HARRY W.
Newhard, Cook & Co., St. Louis
Jr.,

City Bank,

NIELSON, EINER

Hanover

>v

MORGAN. LAWRENCE W.
Lord, Abbett & Co., Chicago

MORSE.

WE INVITE YOUR INQUIRIES

York

G.*

EVANS

Manufacturers

Co.,

Newburger &

NEWTON.

B.

Chicago

NEWBURGER.

NEWTON.

National

NORRIS,

>

Lentz, Newton & Co., San Antonio

Cooley & Co., Hartford
MORGAN, CHARLES F.
Morgan
Stanley & Co.,
MORGAN.

I

Philadelphia
&

LINCOLN

Jr., WILLIAM A.
Continental Illinois National

Company,

NEUWOEHNER. HIRAM*
White

Corporation.

Montreal

First

New

Private

Securities

NOONAN,

NELSON. W. LINTON* y
Delaware Management

MITCHELL, EARLY F.
The First National Bank, Memphis
MITCHELL. JOHN N.*
Caldwell, Trimble & Mitchell, New York
MITCHELL. ROBIE L.*
Mitchell, Pershing, Shetterly & Mitchell,

INVESTMENT BANKERS

Railroad,

NOBLET

Dominion

MEMBERS:
American

New York

Stock

Stock

Exchange

Exchange and

Philadelphia-Baltimore-Washington Stock Exchange

104

Volume

Mr.

&

Mrs.

St. Louis;

Hunter

Mr.

&

Number

198

6328

.

.

The Commercial and Financial Chronicle

.

103

Arthur Tresch, A. E. Masten & Co., Pittsburgh;

Breckenridge, McCourtney-Breckenridge & Co.,
R. H. O'Keef, Marshall Company, Milwaukee

Mrs.

Schedules

Rate

Report of IBA Federal

the

corporate tax

would

rate

and

to

tax

from

credit

1954

only

were

first

partial

intended

a

$50

taxation

to

ex¬

but

concluded

study,

most

them'generally to file simplified

toward

tax returns;

wrong

(4)

f-

dividend credit in
is

i

the

for

same

relative

reduction

percentage

lower income brackes—a 20%

duction to

bracket

only

4,4%

a

the

acted

positive ef¬

a

'

.

.'

(7) The effect
ment
and

of
tax

been

was

•

'\',j

V-

■
.

on

.

'

■

equity invest¬

dividend

credit

modest

enacted
is

the

'

-

has

exclusion

which if

not

to

repeal

dend

exclusion

to

$100

(8)
were

the' credit/exclusion

enacted in

mid-1954, the

tion's

shareholders

fewer

than

IVi

na¬

numbered

million.

A

year

of

Taxation

grant if at that

time it has

J

each

vides for

assets

on

option is not

readily ascertainable

July the Commissioner of In¬
issued

Revenue

amendment

relating
options

<

realized

on

tax would be

grant, the

imposed at ordinary

to

Technical

of the regulations

the

received

tax

by

treatment

of

rates > on

the

or

on

consideration

the

the difference between

independent

Continued

on

page

more

50%, to 40%

maximum tax

a

indefinite

unused

carry

capital losses.

Dividend

Mead, Miller & Co.

Income

above, H. R. 8363

pro¬

increase in the

divi¬

an

exclusion

from

$50 to $100

plete elimination by 1965 of the
4%

dividend credit.

'

'V;
New

■—Members—

.

-j'x

.

f

York Stock Exchange

American Stock Exchange (Associate)

Philadelphia-Baltimore Stock Exchange

;

:

Statement Submitted to

Act

of

now

of

those
terest

(H. R.

been passed by the

Representatives and

of

areas

the

bill

our

is
In

particular in¬

now

Committee

mitted its views

1963

awaiting action in the Senate.

contains

Senate

Last week your Committee sub-,

the

8363) has

Finance

'•

Senate

which is
bill.

now

8363

statement

within the
with

cern

areas

the

of

con¬

our

exception

the

of

the 4%

dividend credit.

sum-

a

in

this

report.

Your

the

Committee

prospects

for

believes

Underwriters,

that

enactment

this major tax legislation early in

•

U. S. Government Bonds

•

State, County and

proposed

Municipal Bonds

enacted, will be made effective

,

v.

Authority and
Bonds

in

Jan.

excellent

rate

1, 1964.

and

that

and dealers

the

when

reductions,

in corporate

as

We believe that
assurances

and

to

the Joint Session of Congress last
week that he will strive for

Markets

in Government,

omy

Securities

Local

are

President Johnson's

Unlisted

Active Trading

1964

of

Stocks and Bonds
•

distributors

of

'■

and

New York—WHitehall 34000

Teletype—301 955-0154

Copies of

•'

Listed

Bell

Prospects for Early Passage

GUIDEP0ST

FOR PRUDEIIT MVESTniEnT SERUICES...

Revenue

Telephones
Baltimore—LExington 9-0210

of its contents need not be

included

•

1, MD.

the statement are available at this

Convention and therefore

Public

BALTIMORE

en¬

we

dorsed all of the provisions of the
bill

binary

•

Charles and Chase Sts.

provision which would eliminate
the

following provisions:

LET BHIKER, UIRTTS & CO. BE VOUR

to

Committee

considering the tax

this

In

H. R.

on

Finance

municipal

securities.

econ¬

his demon¬

strated
Bell

Teletype—301 955-1128

..past
ability
as.
Senate
majority leader to obtain Senate

New York—Call CAnal 6-7162

action

Representative-Clarksburg, W.Va

stated intention to obtain prompt
action

legislation,

on

on

this

tribute to its
Other

bill

will

and
all

his
con¬

early passage.

Federal

Taxation

Matters

BAKER, WATTS & CO.

plete

important Federal taxation; mat¬

•

Established 1900

Members: New York Stock




Exchange

•

•

Calvert I Redwood Sts.

American Stock Exchange

Baltimore 2, Maryland

•

•

•

MU. 5-2600

Phila.-Balto.-Wash. Stock Exchange

ters

without

not be

comment

on

com¬

two

which, because of their highly

technical

and

complex

established 1840

South & Redwood Streets

Investment Bankers

This report would

ROBERT GARRETT & SONS
BALTIMORE

nature,

NEW YORK

One Chase Manhattan Plaza

MUlberry 5-7600

HAnover 2-6140
TELETYPE:

Members: New York Stock

301

re¬

option price and the market

se¬

on

for each investor and for the com¬

Provisions of H. R. 8363: the
Revenue

a

market value of the

Contractors

gain;

of

As stated

,

taxpayer.

House

When

divi¬

for

these

them;

gain, with

forward

dend

answer

provisions but, rather, to increase

gains

on

Permit

en¬

will eliminate the

law

The Revenue Act of 1963

therefore

13

a

stages while increasing the

relief

the

The

writers and Other

and

"readily ascertainable fair market
value." On the other hand, if the

Warrants) Granted to Under¬

Independent

of

1963

11,

option at the time

,

necessarily

because
modest.

pensatory Options (Including

regu¬

this

4% dividend credit in two annual

fect in encouraging equity invest¬

ment;

in

proposals

finally approved by
into

gains

than six months ;

of 21% of the

reject both of

to

to 12 vote provisions

(6) The dividend exclusion and
tax credit have had

11

capital

more

the

of

a

the Ways and Means Com¬

mittee

in the 91% bracket;

someone

14 to

July

after

granted

would tax the

/

proposed

lation would apply only to options

tion

(c)

tentatively agreeing by

President's

area,

to

cut

of

vote

re¬

in the lowest

someone

but

After

the

to

contractors. ' The

ah

Leave unchanged the taxa¬

than two years from

pref¬

and,

of
re¬

ceived for the transfer of the op¬

would—

curities and real estate held

credit/exclusion

retained

be

behalf

in their

Information Release 490 proposing

8363

clusion

tax

erably, expanded.

big¬

a

on

(b) Reduce the percentage in¬

better approach

some

*

(5) The 4% credit gives

held

the

1936; and

the

found,

should

4% taxable dividends;

ger

is

to

experts

Allen

ternal

(a)

was

our

handled

by

Rendigs,
Bache &
Co., New York;
Bear, Stearns & Co., New York

R.

tion: of

approach

which came,into

(10) Until

terms

everyone—up

this

correcting

partially

laws back in

The relief provided by the

that

practical

W.

Capital Gains Taxation
H.

Congress in 1954, after much

the

4,600,000 shareholders and enables

C.

Weintraub,

Federal Income Taxation of Com¬

14%

relief

of

from double taxation of dividends

estimated

an

forms

Mrs.

spective fields.

In

ideal

&

70%.

(9) The credit/exclusion are not

clusion gives complete relief from
double

to

necessarily

the

IBA

would be reduced to

ing;

taxation;

Nevertheless,

(3)

as

from

range

two stages to a new range of

relief

toward

now

and, by all indications, is still ris¬

in

law

be

in 1964

the

Individual

1965.

which

20% to 91%

the total exceeded 17 million

ago

into

steps

from double

22

page

enacted

in

48%

rates

tax

ably

were

Under the provisions of the bill

reduced from 52% to 50%

Continued

Mr.

Mrs. & Mr. Michael
Vick, M. B. Vick & Co., Chicago
'

B.

955-1134

Exchange, American Stock Exchange

Philadelphia-Baltimore-Washlngton Stock Exchange

104

The Commercial and Financial Chronicle

104

Andrew M. Blum, Gregory & Sons, New York;

T. Russell McConchie,
Virginia National Bank, Charlottesville, Va.; Albert E. Gummersbach,
Dempsey-Tegeler & Co., St. Louis; Frank J. Lockwood,
A. G. Becker & Co., New York

R.

B.

Ferris,

that

Report of IBA Federal

the

fixed

the

103

subject to contingencies
tions

value of the stock at the time the

The IBA has submitted

brief and

tensive
terial

ing

the

to

tions

on

exercise,
While

that

an

not subject

or

can

be

admitting

the

of

of

condition

does not prevent the valuation of

non-contingent options
date

of

options

grant,
are

option Therefore,

even

as

of the

where

such

subject to restrictions.
the

brief

concludes

The

IBA

and the

has

terest

nmutual

Equalization

1963"

being

as

opposed

Act

Tax

contrary

national interest and

a

to

of
our

serious ab¬

dication of financial leadership in
free

world

by

the

United

The Association's position

this

bill

has been

Convention

and

reported to
the

Federal

Richmond

Committee

merely

wishes

express

its

admiration

to

Walter W.

gratitude to

ticipated

in

the

those who

Cooper

York, N. Y.

Continued from

Maitland T. Ijams

Langley & Co.

„

U

York, N. Y.

preparation

STOCKS

•

BONOS

MUTUAL FUNDS

•

;

.

;

;-V;:

Respectfully submitted,

■'

Chemical

Milwaukee, Wis.

New

FEDERAL

MEMBERS:
•

RICHMOND

Buford Scott

AMERICAN STOCK
STOCK

*

John

Allen &

S'hearson, Hammill & Co.

PAYNE,

•

*
Marion N. Fitzgerald
*
Thomas D. Neal
Fleming * R. Eldridge Longest * Joseph J. Muldowney
Sidney Buford Scott *
Frederic S. Bocock

DIRECT WIRE TO:

Scott &

R.

Haire,

CLARK, DODGE & CO., INCORPORATED, NEW YORK, N. Y.

Chairman

*

P. 0. Box 1575

*

Hugh W. Long and Company,
Incorporated

York, N. Y.

PEET,

EDWIN

Burns

York, N. Y.

Richmond 13, Virginia

Stephens

Friedrichs &
^
V

&

Denton,

New

York

MILES*
&

Nuveen

Co.,

York

New

PENDERGRAST. THOMAS
Courts & Co., Atlanta

J.

-

PEPPER, CECIL E.
'

Richard J. Stern

Kansas

Bryant

Thomson

&

McKinnon,

Continental

Co., Granbery,

Marache

Incorporated

~

City, Mo.

Dempsey-Tegeler
Inc.

York, N. Y.

Miami

National

Hemphill, Noyes & Co.,
PETERSEN, JOSEPH G.*

&

Company,

PEVEAR,

>;•/

Chicago, 111.

New

Joseph G. Petersen & Co.,
PETERSON. ELWOOD G.
Mitchell, Hutchins & Co.,
WILLIAM

Irving Trust
=l

Bank,

PEYSER.

Chicago

W.*

Company,

BENJAMIN

The First National City Bank

Stein Bros. & Boyce

Newburger,

New

Louisville, Ky.

""Denotes

Loeb

Mr.

&

York

St. Louis

New

PEYSER, Jr., FREDERICK M.*
Hallgarten & Co.. New York

Milton S. Trost

York, N. Y.

Illinois

Chicago
PERKINS. JOHN M.

Frederick W. Straus

Rollin C. Bush

of Service

York

New

Corporation,

F.

Bros.

PELIKAN.

Stern Brothers & Co.

Elizabeth, N. J.
Emmons

New

A Network

Securities

PEDRICK, Jr.. PARKS B.*
Howard, Weil, Labouisse,
Co., New Orleans
PEEL. GORDON R.
Burgess & Leith, Boston

Little Rock, Ark.

,

Denton,

CARR

Nashville

Rhoades & Co. /

Stephens, Inc.

Blair &

Stringfellow

T.

&

Cumberland

Hemphill, Noyes & Co.

Jack

Co.,

H. EDWARD

Bros.

Burns

Millard

Trust

New York

Co.,

PATTERSON.

York, N. Y.

York

New

EDWARD

PERKINS. JOHN II.

Walter S. Robertson

James H. Scott
L. Thornton

TAXATION

COMMITTEE

EXCHANGE (ASSOC.)

EXCHANGE

Bank

York

PATTERSON.

John

NEW YORK STOCK EXCHANGE

Company,

PATTERSON. DONALD C.*

Walter Maynard

New

i

Trust

Fidelity-Philadelphia
Philadelphia

Incorporated

Blancke Noyes

lation.

San Francisco

First Boston

Kay, Richards & Co., Pittsburgh
PARSONS, Jr., JOHN G.

objections to this proposed legis¬

Investment Bankers & Brokers Since 1893

Boston

>

New York

Buyer,

PARKER. R. BURTON*

J. Victor Loewi

New

Bond

Corporation, New York
PARKER. H. LAWRENCE
>
Morgan Stanley & Co., New York
The

Orleans, La.

J.

H.

BARRON*

C.

GEORGE J.*
;
Irving Lundborg & Co.,
OVERBY. ANDREW N.

Friedrichs and Company

Carl M. Loeb,

Firms,

OTTO.

Howard, Weil, Labouisse,

Mark

and

JAMES

The

par¬

delivery of these cogently stated

Exchange

Colonial Distributors, Inc.,

OTIS.

York, N. Y.

Loewi & Co.

Stock

York

New

ORE.

John P. Labouisse

New

of

Association

Spear, Leeds & Kellogg
New

102

page

ORDING, JAMES H.

James C. Kellogg III

New

and

va

In Attendance

,

F. S. Smithers & Co.

"In¬

proposed

Taxation

£3>tringfeUoUi ;

building

the

G.

Cleveland, Ohio

New

vigorously

of

Thursday, December 26, 1963

Nuveen

Prescott & Co.

W. C.

through'. its President

enactment

this

!%ccitt &

Act of 1963

.

Lawson, Discount Corporation of New York, New York;
Harding, Coffin & Burr, Boston; Robert R. Brinker,
& Co., Chicago; Roger E. Williams, Goodbody & Co.,
;
1
Chicago
'

S.

William

John

.

Butler

G.

John

New

Equaliza¬

Foreign Investment Com¬

mittee,

on

'

to

,r

(H. R. 8000)

States.

1 8'H

Interest

Tax

and

respect

Proposed

the

ESTABLISHED

fair

a

The

tion

of

only

the

as

with

result

be

must

taxation

option transactions.

is

option,

of

such

present value until
or

grant

reaching

equitable

option

satisfied, the brief states that this

and/or

an

contingency

no

tak¬

readily valued.
that

value

have

the

ex¬

to restric¬

transferability

all

will

ma¬

Commissioner

position

the

whether

an

supporting

condi¬

of

time

compensation

which, if not satisfied, will

destroy

option is exercised.

or

time
the

as

means

Taxation Committee
Continued from page

John

Rawles, Abbott, Proctor & Paine, Richmond, Va.; George M.
Ferris & Co., 'Washington, D. C.; William A. Stevens, /» C.
Wheat & Co., Richmond, Va.; L. Gordon Miller,
J. C. Wheat <6 Co., Richmond, Va.

.

&

York

'

F.*

Co.,

New

York

Mrs.

by private wire

/

dwzee

MEMBERS: * Philadelphia-Baltimore-Washington
Stock Exchange
-

'

.

> Richmond

Stock

Exchange

Telephone 703 648-2841
TWX 703 649-3949
Members, New York Stock Exchange and
Investment

2

Securities

•

Municipal Bonds

Broadway, New York 4, N. Y.
Phone WHitehall 3-8300




•

Mutual

Cither Leading Exchanges
Funds

•

Commodities

911 E. Main Street,

•

Underwriters

Richmond 19, Va.

Phone 644-5411

1017

EAST MAIN

STREET,

RICHMOND, VIRGINIA

David

Number 6328

198

Volume

.

G.

First

National

PRATT.

K.*
Bank,

DELMONT

PFEFFER.

City

Bank, Des

Central National

PICO.

Moines

San

PIERCE. CHARLES C.*

Rauscher,

Pierce

V,
Co., Dallas

U.

CHARLES
News

S.

Philadelphia

Kenower,
Walston

&

Smith

M.*

Report,

B.

Washington

Detroit

REED,

POOLE,

Co..

Poole

&

Co.,

New

Co.,

Louis

St.

Jr., JOHN L.*
Supervised ^Investors Services,
The

Leedy,

Tribune,

RALPH

Wheeler

POWERS.

&

ROBERT

Chicago

St.

Alleman,

De

National
&

Mrs. '

New

Sfharff

&

San

ROE,

Juan,

Jr..

Eastman
.

Chicago

B.*
Sanford,

&

DONALD

New

Orleans

W.

Saunders. Stiver & Co., Cleveland

>
,

SARNI.

WILLIAM

G.

Edwards

F.
&

Sons,

St.

Louis

C.

& Co.,

:

Pittsburgh

Continued

'

r

on

page

York

New

R.*

Bank.

Specializing since 1932

Providence^

AVERY

Jr..

y

in the

New

Jones,

Rico

Puerto

MUNICIPAL BONDS

>

E. JEDD
Dillon, Union Securities

& Co.,

York

New

John

F.

Weld
Jr..

Bache

Carl

Legg

O.

Philadelphia

Remington,

&

L.

M.
Securities

& Co.,

>
New

Co.,

JOHN

The

,

Loeb,

&

!

W.

ROWE.

Rhoades & Co., New York

f

'

York

New

J.*

M. J.
York

New York
..V;!

_

Times.

New

York

EDWARD M.*

Pressprich & Co., New York
ROBERT

Stroud

RUML,

Meeds,

Merle-Smith,

New

ROWAN.
R.

&

ALFRED

ROSSANT.

York

W.*
New York
W.

Bissell

Laird,
Dick

New York

RICHARD
Doremus,

Corporation,

V

MIDDLETON*

ROSS.

_

WEST VIRGINIA

Baltimore

& Co.,

ARTHUR

Interstate

ROSE,

CHARLES

&

M.

&

PHILIP

C.

ROSE.

Corporation,

REYNOLDS. Jr., STEPHEN C.*
Hemphill, Noyes & Co., New York

;

Co.,

J.

Orleans
RODRIGUEZ. SALVADOR
Government Development Bank,

York

'

HARMON

Coppet

RENNAU,

■

Hattier

SARGENT.

Cleveland

SCOTT*

Lestrange

Dominick, New York

Charlotte

Grant

RENDIGS.

Paine, Webber, Jackson & Curtis, Boston

&

SIDNEY J.*
Marshall, Seattle

ROOSEVELT. JULIAN K.*
Dick & Merle-Smith, New York-

JAMES

REMSEN.

PRATT. MARSOM B.*
Estabrook & Co., Boston

THOMAS

&

Co.,
&

r

G.*

Philadelphia

ALVIN

Hallgarten

■.

Co.,

'

|

.

New York

SERVING

Specializing in

EXCLUSIVELY

municipal bonds
616 EAST MAIN STREET

ALABAMA, FLORIDA,
N. CAROLINA, S.
and General Market

•

RICHMOND 15, VIRGINIA

Telephone Milton 3-2861

J

Teletype 703 649-3837

CAROLINA

Municipals

We Cover The Southeast!
T

Check with

Trust

^

us on

;

Southern and General Market

Securities

Company
of

Georgia

Where

Banking is

Established

a

Pleasure

Members

New

York

1925

Stock

Exchange and

Other National Exchanges

New York,

,

Edgewood and Pryor

MEMBER

JAckson 2-6000, TWX 404 527-2126

Atlanta,

INSURANCE CORPORATION

One Chase Manhattan Plaza
H Anover 2-1561, TWX 212 571-0109
Private Wire Atlanta-New York




FEDERAL DEPOSIT

ATLANTA,
JA

York

SANFORD. Jr.. J.

York

N.
Co.,

A.

RYAN.

Arthurs,

ROGERS.

White.

Orlando

PARIS

&

New

Richmond

Company,

ARTHUR

Dominick

,

EUGENE M.

Hess,

'

A.*

Foster

Hutzler,

Co., Chicago

&

/Trust

ROCKEFELLER.

Louis 'y/,:

CHAD WICK
Securities Corporation,

REMMEL.

J.

PRATT. ALBERT*

Mr. &

Howe

Industrial

REMINGTON. CLIFFORD G.*

^

RUSSELL.

&

Sanders

Vance,

SANDERS.

Miami

&

T.

/y, vc*V~J": RODDY. JAMES E.*

FRANK L.
Indianapolis Bond & Share

Smith, Barney & Co., New York

♦Denotes

A.

CLARKE

Marine

ROBINSON

Indianapolis

POWELL, JAMES M.
/
Boettcher & Co., Denver
POWELSON.

The

REJSSNER,

Chicago

JAMES

Russell

DAVID

ROBERTSON, WILLIAM N.

,

Goodbody & Co.. New York

*

NICK

Chicago

Chapman.

SANDERS.

Glore, Forgan & Co., New York

Newhard, Cook & Co., St. Louis
REFSNES, JOSEPH E.
Refsnes, Ely, Beck & Co., Phoenix

York

York

New

Institute, New York

REILLY,

&

PORTER.
TOULOS.

Bank,

N.

Brothers

Salomon

H.

& Co., Milwaukee

RUSSELL. JAMES A.
Van Alstyne, Noel & Co., New
J.

R.*

SALOMON, WILLIAM

Baird

RUSSELL, JAMES
: The Miami Herald,

if

Strudwick,

ROBERTSON.

*•

S.

REESE.

V.*

ELVIN K.*

Simon

M.

Axe

Chicago

WILLIAM T.
& Co.. Philadelphia

POPPER.
I.

&

&

W.

RUSSELL.

HARRY

Anderson

& Trust Company,

Francisco

Diego

ROBERT B.
Chase Manhattan

ROBERTS.

Peabody

GUY*
Edwards & Sons,

G.

Robert

Philadelphia

San

SAGE, II, ANDREW G. C.*
Lehman Brothers, New York

JACK

BRENTON

RUPPLE.

W.

Investment Company

REED, Jr.. NORMAN E.
Curtiss, House & Co., Cleveland

'

CARL

Diego Union,

The

Francisco

& Co., Philadelphia
RAWLES, ROBERT B.
Abbott, Proctor & Paine, Richmond
RAY, THOMAS I.*
Mercantile Trust Company, St. Louis
A.

Philadelphia

Inquirer,

JULIUS

Angeles

ROBE. BRUCE B.

REDMAN. W.

MacArthur & Co..

Gibbons

San

RANKIN. HARLEY L.*

Kidder,

J.

H.*

MONROE

Geo.

San

Rogers & Tracy, Chicago
RAND. Jr., ARTHUR H.
/
Woodard-Elwood & Co., Minneapolis

PODESTA, ROBERT A.*

POOLE,

The

Taylor,

Minneapolis

Hopwood,

& World

ROYAL

POCIIELON.

Co.,

&

JOHN B.
Sherrerd,

James Richardson <£ Sons, New York: W.
Calvin Bullock Ltd., New York; John B. Ricnter,
Butcher & Sherrerd, Philadelphia

Nares,

Winston-Salem

C.*

San

&

RITTER,

T.

RICHARD N.*
Rand <fc Co., New York

Lynch, Pierce. Fenner
Incorporated. New York

PLENTY.

Staats

Co.,

&

Peter

Britten,

Wachovia Bank

1

v

Jr.. GEORGE
Ohio Company, Columbus

RIVEL.

RAND.

Merrill

PLATT,

R.

FRED

WILLIAM

Wilson

Butcher

THAYER

J.

William

RAHN,

Jacksonville

MICHAEL

Cincinnati

RINKER.

Coppet & Doremus, New York
EBEN Wr
National City Bank, New York

RAGGIO.

&
CHARLES C.
Rauscher, Pierce & Co., Inc., Dallas
PIERCE, ROBERT J.*
Pierce, Wulbern, Murphey, Inc.,

PIZZUTO.

RUNNION,

Co.,

&

RICHTER.

Birr,

First

PIERCE. Jr.,

PIPER, Jr., H. C.*
Piper. Jaffray &

Richards

RICHARDSON.

PYNE,

Development Bank,

Puerto Rico

Juan,

Field,

RICHARDS. CLAUDE C.*
R. H. Moulton'& Co., Los

De

RAFAEL

Government

RICHARDS. CHARLES A.

,

PURKISS, ALBERT C.
Walston & Co., New York
PUTNAM.
HENRY
W.

York

T. WARD*

PHILLIPS.

^ v
New York

Company,

EUGENE F.
H. C. Wainwright & Co., Boston
PROSSER. MALCOLM S.*
Seattle-First National Bank, Seattle

Los

Angeles-San Francisco
PHILIP. PETER V. N.*
W. H. Morton & Co., New

Trust

PROCTOR.

THELAN. THOMAS P.*
Pacific Coast Stock Exchange,

G.

Clark, Blunt Ellis & Simmons, Chicago; W. Scott Cluett,
Ripley & Co. Incorporated, New York; John H. Brooks,
Putnam <ft Co., Hartford, Conn.

Harriman

/•

TRUXTON B.

Jr..

Bankers

York

New

M.

Robert

William

Stone, Hayden, Stone & Co. Incorporated, Boston;
Harding, Coffin & Burr, Boston; J. M. Bleakie,
W. E. Hutton & Co., Boston

B.

105

The Comrriercial and Financial Chronicle

.

GA.

NEW

1-0238/404 527-0147

Wire

YORK,

N.

System extends to New York and Principal
Southern

Y.

BO 9-9227/212 571-1791

Cities

107

The Commercial and Financial Chronicle
"V

Mr.

&

Mrs.

B.

F. Peyser,
New

Mr.

&

Mrs. Cornelius

Shields, Shields & Company,

New

G,

Mr.

Newburger, Loeb & Co.,
York

Andrew S.

Beaubien, L. G. Beaubien & Co., Ltd., Montreal; Mrs. Irving H. Campbell; Mr. & Mrs. R. B.
Casgrain, Casgrain & Co., Montreal; Irving H. Campbell, Bell, Gouinlock & Co., Toronto

Mr. &

Mrs. Raymond L.

York

Robert

7

Smith, Mason Brothers, Oakland, Calif.; Mr. & Mrs. William
Birr, Wilson & Co., Inc., San Francisco

Brooks,
Schmidt,
Roberts
<ft
Parke,
Philadelphia; Frederick V. Leech, Arthurs,
Lestrange & Co., Pittsburgh

Glen Mayer, Dempsey-Tegeler

Richardson,

Hiram Neuwoehner, White & Company,
Inc., St. Louis;

&

C.

Mrs.

J.

R.

Corbus, The
Chicago




Illinois

Company,

Kansas

John Latshaw, E. F. Hutton & Company, Inc.,
City, Mo.; Harry L. Sebel, Selected Investments Company, Chicago; Wallace D.
Johnson,
David A. Noyes & Co.,
Chicago / o

& Co., Inc., New Yprk; Bert H. Horning,
Dempsey-Tegeler <ft Co., Inc
St. Louis; T. Ballard Morton, Jr., J. J. B. Hilliard &
Son, Louisville; Neil Carr,
Francis /.

du

Pont &

Co., New York

.

.

Thursday, December 26, 1963

.

7'

r

Mr.

&

Mrs.
'

''•

James

Jackson

Norman

A.

William

E.

•

7

•>

7

•
'

W.
Davant, Paine,
Curtis, Minneapolis

&

Cooledge,
Simon,

Courts

Weeden

«

Webber,

<ft

&

Co., Atlanta;
Co., New York

Mr. & Mrs. Clarence F. Edner, First Western Bank
&

Mr.

&

Mrs.

Trust

James
<fc

Co.,

D.

Co.,

Los

Angeles

Winsor III, Yarnall,
Philadelphia

Biddle

Volume

198

Number

The Commercial and Financial Chronicle

6328

Mr. & Mrs. Walter W. Craigie, F. W. Craigie & Co. Inc., Richmond;
Truxton B. Pratt, Jr., Bankers Trust Company, New York

Mrs.

&

Carl

F.

Cooke

Mrs. Frederick

107

(First

Boston

C. Farnsworth,

SCOTT,

&

Ohio

SEBEL.

Continued from page 105
'

SAXTON, LOUIS M.*
Pierce, Wulbern, Murphey,
SCHAFER.
Brown

New

GEORGE

Brothers

Inc.,

Tampa

E.

SCHOENEBERGER,

Harriman

&

Co.,

National

Bacon,
A.

R*

Boulevard

Campbell,

Whipple & Co.,. Chicago
MORRIS

HAROLD

Continental

Bateman,

SCHMELZLE, RICHARD A.*
Fusz-Schmelzle & Co.. St. Louis

Selected Investments Company, Chicago
SEDERBERG, ARELO C.*
Los Angeles Times, New York
SEIBERT, CLAUDE D.*
Commercial
and
Financial Chronicle,

ALEX.*
National State Bank,
SELLERS. WALTER O.

New York

Merrill

Lynch,

National
■

Bank,

7 '-7

■

;7.'7

Eichler & Co./ Los Angeles

SCHWINN. LESLIE B.
L. B. Schwinn & Co.,

Mrs.

&

Ohio;

Todd

Charles

Newark

Y

Pierce,

Fenner
York

New

Hickey,

Cartwright, Sweney Cartwright & Co., Columbus,
Richards, Field, Richards & Co., Cincinnati

A.

STEVENSON. III.

New

York

&

Brown

&

Baltimore

Sons,

Paribas

Corporation,

Bankers

Trust

Company,

New

York

STEWART. NORMAN W.*
F. Is. Smithers & Co., New York

A.

New

Association,
v

STEVENSON. STEWART B.

STEPHENS. JACK T.*
v/i
Stephens, Inc., Little Rock
STEPHENSON, EDWIN

ROBERT

Bankers

York

New

STEWART, Jr., ROBERT
Bank of the Southwest,

STITZER. RAYMOND

York

Houston

D.

White, Weld & Co,, New York

K

,

Investment

Washington

CLINTON

STETSON, Jr., EUGENE W.
Winslow, Cohu & Stetson,

..

Incorporated,

Illinois

Chicago
SCHUTZ. JOHN C.

Company, New York

Inc.,

Alex.

L.*

York

&

STEPHENS,

SEIDLER, Jr.,

X.*

Group,
SCHULTZ. GLENN R.

Vilas

G.

Company, Columbus

HARRY

New

Chicago

HERBERT

Distributors

Co., New York
SCHEETZ, Jr., EDWIN F.*
Moore, Leonard & Lynch, Pittsburgh
SCHLICHTING. ARTHUR W.
Trust

Bank,

A.

McCarty & Co., Detroit

SCHREDER.

A.*

Schapiro &

Bankers

CHARLES

SCHOLLENBERGER.

FRANCIS

SCHAFIRO.
M.

Roberts & Parke, Philadelphia
SCHMIDT, W. MARSHALL
Hornblower & Weeks, Philadelphia

Schmidt,

York

SCHANCK.

WALTER A.

SCHMIDT,

GEORGE

Mr.

STEPIIAN. FRANCIS '

Stringfellow, Richmond

SCULLY.
The

BUFORD

S.

Scott

Corporation), New York; Mr.
Second District Securities Co.,

York

New

STEVENS.

Smith

>* J.

C.

WILLIAM

Wheat &

A.''

Co.,

Continued

Richmond

on

108

page

SENHOLZI, JOHN C.
The Chase Manhattan Bank, New
SEWARD, C. CARROLL
Yarnall, Biddle & Co., Philadelphia

York

SHAD. JOHN s. R.

,

Cleveland

E. F. Hutton & Co., New York
SHANKS. WILLIAM S.
The

Bond

SHAPIRO.

Buyer, New York

ROBERT

F.

Lehman

Brothers, New York
SHAPLEIGH, II. A. LEE*
Smith, Moore & Co., St. Louis
SHAW. HUGH*
>
;

'

Nesbitt, Thomson & Co., New York
SHEAFFER. THEODORE C.
Janney, Battles & E. W. Clark,
Philadelphia
SHEAN. EDWARD S.

THE

Lazard Freres

& Co., New York
HERMAN J.*

SHEEDY.

McDonald &

COMPANY

&

Corporate and Municipal Securities

'

Member

E.

F.

Midwest

Hutton

&

Stock

Exchange

Company Wire System

Bldg.

1321 "P" Street

Omaha, Nebraska 68102

Telephone 346-6677

Lincoln, Nebraska 68508

//

Bell Teletype

—

Telephone 432-3324

402 348-1040

.

heralds the 52nd annual convention

Investment Bankers Association

Pittsburgh

of America

Chicago Daily News, Chicago
SHUMATE. J. B.
First National Bank, Miami
SIEFERT. RUSSELL E.*
i,
Stern Brothers & Co., Kansas City
SIMON. WILLIAM E.
Weeden & Co., New York
SIMONSON, Jr.. HENRY J.*
Securities

&

"

'

December 1

Once again you have

Research

Corporation, New York
SIMPSON. Jr., F. BRADFORD
Hallgarten & Co., New York
SIPP, Jr.. PAUL L *
7-/v.
Stern, Lauer & Co., New York
SLEVIN. JOSEPH R.*

■'

York

.7

Warren

SMITH.
F.

■

7

SMITH.

G=3

—

York

&

Co.,

/

-

December 6, 1963

enjoyed the unsurpassed pleasures for

Hollywood Beach Hotel is justly famed

again

we

with the ultimate in friendly, personalized service.

Congratulations

and

best

wishes

on

your

52nd

convention.

•'

Our intention is
that

to

make each of your conventions

you'll

return year

after

year to

the

so

exceptional

.

.

.

Allentown

A.*

Securities

&

Research

Corporation, New York
SMITH. RAYMOND L.*
Mason

Q

Brothers.

SMUTNY.

Municipal Bonds
Corporate Bonds

@

Pressprich & Co., New York /•.'
SNYDER. HARRY B.

Yarnall, Biddle & Co., Philadelphia
Francis

JAMES E.
I. duPont &

Co., Chicago

SOLTIS. PAUL E.
Thomas

SPENCER.

and Stocks

Oakland

RUDOLF

R. W.

SNYDER.

Salomon

&

Co., Pittsburgh
GIRARD L.*
Brothers

&

Hutzler,

New

York

STAFFORD. JOHN H.
Lee

Higginson Corporation, New York
STAPLES. JACK R.
Fulton, Reid & Co., Cleveland
STARRING, in. MASON B.
Dominick & Dominick, New York
STAUNTON. SIDNEY A.*
Laird

Raffensperger, Hughes & Co.

&

The

Oscar E.

STEIN.

20

North

Meridian

Street

•

Indianapolis 4, Indiana

The
MEMBER




MIDWEST

STOCK

EXCHANGE

R.*

'

M.*

Ben Tobin,

Dooly & Co., Miami
H.*

President

Richter Company,

STENGER.

ROBERT

Milwaukee

St.

Louis

G.

Company, Milwaukee

STENSON.

JAMES
Continental Illinois
New

National

York

♦Denotes Mr.

HOLLYWOOD BEACH / FLORIDA

Chicago

PHILIP

ELLIOT

Scherck,

HOTEL/GOLF CLUB

New York

Economist,

STEARNS.

INCORPORATED

Co.,

STEARNS. GEORGE

& Mrs.

Bank,

...

have taken particular pride in providing

Craigie & Co., Richmond
PHILIP C.*

National

"""""""

_j

W.

MARK

W.

once

you

New York Herald Tribune,
Washington
SMEAL. FRANK P.
Morgan Guaranty Trust Company
: ,
New

which the

and

SMITH. Jr.. H. HANFORD
De Coppet &
poremus, New York
SMITH. H. MORTON

^ RAFFEMSPF.RGEK. HUGHES & Co. (§)

of the

,

National

412 Farm Credit

CLUB

H.

Gregory & Sons, New York
SHELTON. LOCKETT*
Republic National Bank, Dallas
SHERBURNE. HAROLD H.
Bacon, Whipple & Co., New York
SHIELDS, Jr., CORNELIUS*
Shields & Co., New York
SHORT, JOSEPH P.

Arthurs, Lestrange & Co.,
SHUMAN. NICHOLAS R.
-

/ GOLF

BEACH

Co., Cleveland

SHEILS. JAMES

CHILES

HOLLYWOOD

HOTEL

■

7

108

Mr.

&

Mrs.

The Commercial and Financial Chronicle

Lee

F. Murphy, Ladd Dinkins & Co., New
Adler, Varnedoe, Chisholm & Co., Savannah

Lee

Mr. & Mrs. William C. Lickle, Laird, Bissell & Meeds, Wilmington,
Del.; Mr. & Mrs. Middleton Rose, Laird, Bissell & Meeds, New York

Orleans;

Bertrand

McTeague,
Putnam
&
Co., Hartford, Conn.; John J.
Jackson, Baker, Watts & Co., Baltimore; Albin D. Strandberg,
Glore, Forgan & Co., New York

H.

'

Morton Smith, Warren W. York <6
Co.,
Claude C. Richards, R. H. Moulton

Lloyd

C.

Mathers,

Goodbody

Co.,

&

New

.

.

Thursday, December 26, 1963

Mr. & Mrs. Norman W. Stewart, F. S. Smithers & Co., New York;
Marsom B. Pratt, Estabrook & Co., Boston

Allentown, Pa.; Mrs. &
& Co., Los Angeles;

Mr.

.

Mr. & Mrs. J. L. Morris, Powell, Kistler & Co., Fayetteville, N. C.;
James R. Burkholder III, Almstedt Brothers, Louisville;
J. R. Duchesneu, Burton J. Vincent & Co., Chicago/

York

,

VANDERNOOT, JOSEPH F.
R. W. Pressprich & Co., New

In Attendance at Convention

VARLEY,

Continued from page

VARNEDOE,

The

TREUHOLD,

107

.

STOHL.

CADY & COMPANY

WALTER

Fidelity
STONE,

Hayden,

Investment Bankers

The

&

Co.,

Trust

ROBERT

Federal

Company,

Newark

•V;-'

Company,

Bank,

;■

■/<

STOUT,

CHARLES

Robert

Garrett

L.
&

Sons,

FREDERICK

Dempsev-Tegeler

First Columbus Nat'l Bank Bldg.

W.*

Co.,

&

Northern

SWORD,

Stanley

SYMINGTON,

mmm

G.

H.

&

GUY

York

New

Company, Chicago

'
New

York

Co.,

New

,

Dickson

S.

UNTERBERG,
C.

E.

'

&

VADEN,

JERRY

Co.,

&

William

R.

Co.,

Toledo

WALSH,
.

Charlotte

WARD,

I.

National

JOHN

Walston

&

;

WILLIAM
Staats

&

WALLACE, WILLIAM

Angeles

York

New

S.*

&

WALBERT, RICHARD B.
Blyth & Co., Chicago

,

Co.,

Wade

WALKER, Jr.,

A.

THOMAS

Peabody

GEORGE

Roose,

Mellon

T.

^

*

Co., Los Angeles

J.

Pittsburgh

Bank,

J.

Co., Chicago

JOHN

G.*

Merrill

Unterberg, Towbin

Co.,

New

York

B.

Lynch, Pierce, Fenner
Incorporated, New York

WARD,

Lord, Abbett & Co., Atlanta

E.

VALENTINE, II, HENRY CEE
Davenport & Co., Richmond
VANDERBILT, OLIVER DeG.*
Blair & Co., Granbery, Marache

Deposit
"

.

&

Trust

F.

MURRAY*
Hutton

&

■

Co..

''

-

WASSERMAN, JOHN
Asiel

&

Smith

Los Angeles

WARD, Jr., NORMAN B.*
Singer, Deane & Scribner,
Inc.

&

'/V" '-v' --Y

Co., New York

Pittsburgh
f

'

/

Co.,
v"

"

.

Trust

Corn

'

Bank,

Underwriters

Firm Bids

Municipals

JAY

Childs

Securities

THORSON,
Paine,
New

Corporation,

ROBERT

Webber,
Jr..

Pershing

&

TINSTMAN.

New

DALE

TISCH, ALFRED

TODD,

Union Planters National Bank

National

901

BELL

523-2911

TELETYPE

'901-278-1537
BANK

WIRE

&

Curtis,

United

States

Government Securities

•

General

Market

Municipals

C.*

Securities, Inc., Lincoln
F.*

New

York

City Bank, New York

WILLIAM

H.

THE

■

Kuhn, Loeb & Co., New York
Thomas
C.

&

A.

Co.,

Unterberg, Towbin Co., New York
TOWBIN, BELMONT
C. E. Unterberg, Towbin
Co., New York
TRAVIS, EUGENE C. " ' '
Hayden, Stone & Co., Chicago
TRESCH,
A.

First National Bank

Pitssburgh

ROBERT

E.

E.

ARTHUR

Masten

&

Co.,

Pittsburgh

♦Denotes Mr. & Mrs.

1

Quotations

TOMASIC, ANTHONY E.*
TOWBIN,

Memphis 1, Tennessee

Dealers

D.*

Jackson

Fitzgerald & Co.,
TITUS, ALAN W.
First

York

v

CARL W.
Co., New York

First Nebraska

Department

Offerings

York

TIMPSON,

Securities

Firm

E.

TIIORS. J. EMERSON*
Kuhn, Loeb & Co., New York

United States Government

Distributors

First Pennsylvania Banking & Trust Co.,
Philadelphia
' / ?'
TIIORS,




WADE.

New York

Los

■

JOSEPH

Kidder,

'

Bank,

•„

.

York

New

Thompson & Co., Kansas City
THORNTON, RICHARD S.*

v

SYSTEM —-THE

EDWARD

Co.,

Luce,

Mississippi —T ennessee

WIRE

UHLER.

&

'

Cleveland

Herald Tribune,

Witter

:

C.

RICHARD

Dean

Co.,

Chicago

York

Exchange
Philadelphia
THOMPSON, KENNETH J.*

CODE:

York

&

TERRELL, ALLEN M.
Girard

AREA

V.

:

H.

Baltimore

Bond

Co.,

York

New

R.

Mercantile-Safe

OFFERINGS

and Arkansas

&

Bank,

L.

& Co., Savannah

D.*

Vick & Co.,

B.

& Co., New York
CHARLES H.*

Jr.,

Walker

TAYLOR,

t

Turben

PAUL E.
United California
R.

Trust

WILLIAM

Morgan

.

M.

Louisville

VOSTAL,

UIIL,

Faulkner, Dawkins & Sullivan, New York
PIKE H.*
F. Eberstadt & Co., New York
SWEET. Jr., PHILIP W. K.
The

AND

Boyce,

Rothschild

MICHAEL

VIVIAN,

New

Chicago

SULLIVAN, JOHN F.

SWICK, THEODORE
White, Weld & Co.,

BIDS

S.*

TURNER, JOHN W.
Eppler, Guerin & Turner, Dallas
TYLER, Jr., CHARLES L.*

SULLIVAN,

FIRM

&

Manhattan

SAMUEL

CHESTER W.*

F.

TROSTER, OLIVER J.*
./'V'
Troster, Singer & Co., New York

Merrill,

Baltimore

STRAVITZ, HENRY*
Swiss American Corporation,

Columbus, Mississippi

m mm mmmmmmmmmmmmmm® mm m.

Bros.

L.

VICK,

,

STRAUS,

Telephone FAirfax 8-1370

York

New

STRANDBERG, ALBIN D.
Glore, Forgan & Co., New York

Mississippi's Oldest Municipal Bond House

VIALE,
/

TSOLAINOS, K. P.*
Baker, Weeks & Co., New York
TULLER, ROBERT N.
Tuller & Zucker, New York
TURBEN, JOHN F.*

Buffalo

New York

Dominick,

MILTON

Stein

STOUT, Jr., ANDREW V.*
&

V:';/V::

C.*

Chase

York

J.

Varnedoe, Chishoim

York

Tripp & Co., New York
TROST,

Boston

W.

Reserve

Dominick

TRIPP, J.

R.*
New

B.*

FRED D.*

Marine

STONE,

Trust

Stone

STONE, Jr.,

CHARLES

Corporation,

H.

Union

DAVID

Paribas

GEORGE

OF

TELETYPES

MEMPHIS

(Area Code 901)
WIRE

278-1591

SYSTEM

—

THE

TELEPHONE
BANK

WIRE

525-8521

Volume

198

Number

v

6328

.

The Commercial and Financial Chronicle

.

.

V

Mr.

'

'<

-

*

V

&_Mrs. R. S. Thornton, First Pennsylvania Banking &
Co., Philadelphia; Mr. & Mrs. Peyton R. Biddle,
,

Philadelphia

,

National

Bank

WATKINS. MILES A.*
Stubbs, Watkins & Lombardo,

Value

GAVIN

Line

WEBERMAN.

H.
Securities,
BEN*

Co.,

Midwest

WEINTRAUB,

New

York

WENDT.
The

New York

WEEKS, Jr.. ROBERT S.
P. S. Moseley & Co., Boston

GEORGE B.*
National Bank,

CHARLES

Putnam

Fund

WESTERVELT.

GILBERT H.

White, Weld & Co., New York

G.

KELTON
Walker

H.

WHITE,

Boston

Co.,

Chicago; Joseph
C. Purkiss,

C.

Albert

& Co. Inc., New

York

>

NORTH

St.

Co.,

Chace,

,

Statistical

Louis

Information

Winslow,

&

DANIEL P.
Thalmann

Boston

STOCKS and

,Distributors

BONDS

York

New

Co.,

&

Underwriters

SOUTHERN CORPORATE

Chicago

THOMAS

Whiteside

Ladenburg,

Markets
A ppraisals

BONDS

A.

&

WHITLOCK,

CAROLINA

STATE and MUNICIPAL

E.*

&

WILLARD

WHITESIDE.

T.*

Friedrichs

D. Johnson, David A. Noyes <fi
Nugent, Mabon & Co., New York;

Walston

Co., New York

Chapman, Howe & Co.,

Distributors,
PAUL

&

WHITE,

Chicago

M *

Howard, Weil, Labouisse,
Co., New Orleans

Wallace

Chicago *"

WHITBECK, BRAINERD H.*
The First Boston Corporation, New York

Philadelphia

First

WF.RLY.

WEHMANN,

Bache

Co.,

Exchange,

WHELPLEY, GORDON

ALLEN*

Newburger &

Stock

WESTON, LEWIS M.
Goldman, Sachs & Co., New York

Bank

Bear, Stearns & Co., New York

WEEDEN. ALAN N.*
&

Lovell, McDonald & Co., Cleveland; George E. Jones,
Jones & Templeton, Inc., Los Angeles; James E. Day,

WEINTRAUB, ALAN
New York

Inc.,

,New, York Herald Tribune,

Weeden

Edwin

Mitchum,

'

WEHRHEIM, ROBERT V.*
The Philadelphia National
Philadelphia

Birmingham
WATSON.

C.

Trust

WHITNEY. Jr.. WHEELOCK*
J.

Dain

M.

&

Minneapolis

Co.,

Carolina Securities

HANS A.
Loeb, Rhoades & Co., New York

WIDENMANN.
Carl

M.

WILDE, BERTRAM M.
Janney, Battles & E. W. Clark

Corporation

Philadelphia
THOMAS L.

WILKERSON,
Blair

&

_

Marache

Granbery,

Co.,

Inc.

~S

\Siiiu€.9tftmnt9 for

York

New

WILLEMS. HENRY F.
Hornblower

&

New York

Weeks,

;

WILLIAMS, GORDON
Business Week, New

Members Midwest Stock Exchange

,

York

WILLIAMS, LEWIS C.

Turben &

Merrill,

WILLIAMS,

Jr..

Goodbody

&

Co.,

Miami

The

Louis

St.

BENJAMIN C.*
Superintendent of

DR.

General

40 Wall Street. New York 5, N.Y.

'

MiamL

Bank,

National

WILLIS.

Dldg., Charlotte, N.C.

RUSSELL T.

WILLIAMS,
First

206 Johnston

Cleveland

ROGER E.
Co., Chicago

ROBERT
Herald,

WILLIAMS.

"

INSURANCE BUILDING, RALEIGH, N. C.

We Cover The Carolinas

Schools

Chicago

WILSON, CARLTON P.*
Baird

W.

Robert

Milwakee

Co.,

&

FRANK*
'Barron's, New York

WILSON.

GEORGE

WILSON.

M.*

Ltd.,

Equitable Securities Canada
Toronto

HARVEY W.

WILSON.

Roland & Co., New York

Model,

,

WILSON. JOHN D.

Sanders

Vance,
Carlisle

&

Mrs.

John

F.

Turben, Merrill, Turben
Fred
Butler, Guest

&

Co.,

SAMUEL R.*

Cohu & Stetson, New

Winslow,

Cleveland;

Jr..

&

WINSLOW.
Mr.

Co., Boston

&

JOHN T.*
Jacquelin, New York

WINKHAUS.

York

WINSOR. Ill, JAMES D.*
/

Philadelphia

Yarnall, Biddle & Co.,

PROCTOR
Hammill & Co., New York

WINTER.

Shearson,

JOSEPH B.*

WISE.

at Dallas ^

Bank

National

Mercantile
York

New

WISMAN. PAUL P.

DISTRIBUTORS

DEALERS

Witter

&

Hemphill,

Noyes

M.

York

Co.,, New

&

W.
Smith

Francisco

San

Co.,

ROBERT

WOHLFORTH.

JAMES

WOLFF.

Powell, Kistler & Co.

New York

WENDELL W.

WITTER,
Dean

& Co.,

duPont

I.

Francis

UNDERWRITERS

Zuckerman,

Co.,

&

As underwriters, distributors and

New York "■

WONHAM. FREDERICK S.*
G. H. Walker & Co., New York

GEORGE D.
International Bank,

/

Corporate and Municipal Securities

New York

Stock

Exchange

NORTH

Listed and Unlisted

A.

Masten

E.

Baker,

&

Watts

CAROLINA

Pittsburgh

Co.,

&

Co.,

Insurance and Utilities.

Baltimore

Pittsburgh National Bank,

District

Lee

JOHN

Pittsburgh

'

H.

BRACEBRIDGE

Second

YOUNG.

Securities Co.,

New York

ALESTER G. FURMAN CO.

D.*

Higginson

Corporation,

Boston
_

YOUNGDAHL.

Branch Offices:

'

Aubrey

Kinston, N. C.

YORK,
York

Myrtle Beach, S. C.

Charlotte, N. C.

High Point, N. C.

&

ZAHNER.

Pershing & Co. Correspondent

ZENTZ,

PALMER

Co.,

Co.,

Co.,

&

New

York

"

,

Francisco

San

VICTOR
&

ALESTER

G.

Furman

Washington

SOUTH

CAROLINA

CEdar 2-5661

1888

NATIONAL
•

BANK

BUILDING

GREENVILLE, S. C.

/

Member: Midwest Stock Exchange
— Anderson
and Columbia, S. C.

H.*

Kansas

Branch Offices

City

Correspondent: Eastman Dillon Union Securities and Company

BILL*

Investment

ESTABLISHED

C. RICHARD*

Lanston

G.

Jr.,

Zahner




Corporate

Securities of Textiles, Banks,

GERALD D.

WYATT.

YOUNG,

Norfolk, Va.

-

Municipal Bonds,

YEO. Ill, EDWIN H.

TELETYPE 919 484-1960

3-2146

•

..

Jacksonville

110 Old Street

FAYETTEVILLE,

*

i

.

Wulbern, Murphey, Inc.

Pierce,

YEAGER, III, G. THOMAS*

HEMLOCK

'

Washington

WULBERN, EDWARD R.*

Members

V'

dealers for State and

WOODS,

Bankers

Association,

:

♦Denotes Mr. & Mrs.

Investment Securities

•

Insurance

•

Real Estate

•

Property Management

>,

■

;

The Commercial and Financial Chronicle

no

ESTABLISHED

Underwriters

.

.

Thursday, December 26, 1963

1917

Distributors

—

.

—

Dealers

MUNICIPAL and CORPORATE
SECURITIES

STERNE, AGEE & LEACH, INC,
Members

New
American

York Stock Exchange
Stock Exchange

Montgomery

Birmingham
Private

(Assoc.)

Wires

Direct Private Wire to

Between

Offices

Goldman, Sachs & Co., New York

Mr.

&

Mrs.

Cliff C.

Bank &

Trust

Mr.

Mrs.

Hatcher III, Alester G. Furman Co., Greenville, S. C.; Jack Runnion, Wachovia
Co., Winston-Salem, N. C*i Mr. & Mrs. Lester Mason, Burroughs Clearing House, Detroit

MUNICIPAL
BONDS
&

Charles

W.

Rendigs, Bache & Co., New York; Mr.
Fusz, Schmelzle & Co., St. Louis

&

Mrs.

Richard

A.

Schmelzle,

Stubbs, Watkins & Lombardo, Inc.
BIRMINGHAM 3, ALABAMA

Telephone: 252-3175

Teletype: 205 328-0321

Herbert R. Anderson, Distributors Group Incorporated, New York: Lorrin C.
Mawdsley. Van Alstvne
Noel & Co., New York; Mr. & Mrs. Hunter B. Grant, Jr., Coffin &
Burr, New York
'

Member Midwest Stoeck Exchange

Kentucky Municipal Bonds
Local

Securities

420 West Jefferson St.

LOUISVILLE
Bell

2,

Teletype 502 589-1123

KENTUCKY

Telephone 584-0226

Direct Wire to Dempsey-Tegeler & Co., Chicago




Donald T. Fletcher, Wdliam Blair & Company, Chicago;

Herbert Schollenberger, Campbell, McCarty &
Co., Detroit; William P. Brown, Rafter, Simonds & Co., Inc., Detroit; William L. Hurley,
Baker, Simonds & Co., Inc., Detroit '

Volume

Mr. & Mrs. R. M.

198

Number

6328

The

...

Commercial and Financial Chronicle

111

Dawson, Dawson, Nagel, Sherman & Howard, Denver; Mr. & Mrs. George W. Miller,
First National Bank, Chicago

the

Report of IBA Foreign

Henry

J. Simonson, Jr., National Securities & Research Corp., New York; William H. Todd, Kuhn,
& Co., New York; Mr. & Mrs. William S. Gray, Merrill, Turben & Co., Cleveland

Loeb

Chairman of the Foreign In¬

vestment Committee signed joint¬

American

held

in

letter which has been sent to

was

each member of the United States

and

Congress

vestment

ly

a

with

supporting
Continued
and

even

on

the

Fund

from

should

41

page

by temporary drawings
International

or use

of

Monetary

our reserves

rather

determine

lation

in

be

funds

to pay U.

position

the

as

proceeds

key

of

confidence in
dom
*

of

our

us

and in the free¬

capital market is im¬

paired, it will be difficult to
build it.
V
£•

/■

The

Investment

Bankers

made

and

Means

that

if,

Committee

however,

Congress

meetings

Exten¬
also

held by

with Treas¬

officials

on

the

aspects of the proposed
of

of the

proposed

Equalization Tax Act of

November

21,

1963, the President of the IBA and

attended

in

The

of the

Chairman

Foreign In¬

At the request

the

of the Treasury,

Foreign Investment

tee

met with the

Treasury

Secretary of the

his

and

Commit¬

associates

envisaged

in

President's

Section

Balance

and

the

of

tended

in

30

Committee

October

Meetings

Governors

of securities

to

,

4

operating

quently,
a

task

the

the

An¬

of

Boards

ing further study during 1963 to
the plan to establish

We

Specialize in

to

Bank

the

for

Reconstruction

Continued

LOUISIANA

the

Assistant

FIRM

UNDERWRITERS

DEALERS

-

Diamond Crystal Salt

SOUTHERN & GENERAL

Hibernia National Bank

Jahncke Service
Kalvar

MARKET MUNICIPALS

Ocean Drilling

& Explor. Co.
Southdown, Inc.
Southern Industries

Development

Department

Barrow,Leary&Co.

countries
mutual

Exchange

St.

.

Phone

,

for

other

and

The

Whitney National Bank

COURTS & CO. and

MEMBERS

American Stock Exchange (Associate)

of

matters

of the
secur¬

opment banks being organized in

423-2573

foreign countries. There has

many

further

been

progress

Howard, Weil, Labouisse, FriedrichsQ
■

.

in extending the investment

AND COMPANY rc~>ecutitie*

fj

cc^HveAmcnt

211 Carondelet St.
New

during the
.

year

FIRST SOUTHWEST CO.

New York Stock Exchange

/■

,

SHREVEPORT, LOUISIANA

GREGORY & SONS

foreign

solicited in

was

Weiss Bros.

PRIVATE WIRE SYSTEMS

PERSHING & CO. and

regarding

help

'

•

*

Tel. 524-2711

Orleans, La.

MEMBERS NEW YORK STOCK EXCHANGE

TELETYPES 504-822-6110 (Corporate)

504-822-6112 (Municipal)

guaranty program of the Agency
for

International

Investment
IKE

D.

SCHARFF

JAMES

E.

RODDY

JOHN

J.

ZOLLINGER,

JR.

President

Executive

Vice

Development.

guaranty

in effect

are

now

ing

Chairman of Beard

countries,

in

programs
57

President

been

?v-,

of

negotiated

which
in

the

develop¬

have

19
last

two

of

the

UNDERWRITERS

years.

Fourth

The

LOUISIANA

LOCAL

BANK

of

Meeting

Governors

of the

•

DISTRIBUTORS

•

DEALERS

Inter-

CORPORATE

STOCKS

Board

ISSUES

Specializing in

i

LOUISIANA and
MUNICIPAL

Scharff L Jones
140 CARONDELET ST.

TELETYPE
504

BONDS

Sanford

Hattier

L. D. 235

&

NEW ORLEANS, LA. 70130

524-0161

822-5200

NEW ORLEANS 12,
SHREVEPORT, LA.

,

TELETYPE

LA.

504-822-5320

ROUGE, LA.




LAFAYETTE, LA.

F. Clark, Municipal Finance
Association, Chicago; Robert
Harkness, Harhness & Hill,
Incorporated, Boston

Officer
B.

TELEPHONE

504-822-5321

JACKSON, MISS.
Joseph

BATON

MISSISSIPPI

WHITNEY BUILDING,

INCQRPORATED

S/S Co.

Texas Gas. Prod.

with

(AID),

in

BANK STOCKS

Tidewater Marine

ing able personnel to staff devel¬

Teletypes 318-746-4017 and 318-746-4018
Market

State,

banks

interest.

Committee
Member of Midwest Stock

of

development

Investment Securities Since 1934

515

Standard Fruit &

NEW ORLEANS

these matters.

Administrator

Corp.

National Bagasse Prod.
National Bank of Commerce

CORPORATE SECURITIES

represen¬

met

MARKETS

Delta Capital Corp.
Delta Steamship

DISTRIBUTORS

Enterprise of the Agency for In¬
ternational

112

Billups Western Petroleum

Subse¬

Development Finance and Private

MUNICIPAL BONDS

page

Canal Assets, Inc.
Central Louisiana Electric

appointed

Committee

on

in

Earlier in the year, the Foreign
Investment

un¬

Barik, for

international investment disputes.

national

of

private

abroad.

study

facilities,

der the umbrella of the

tatives of the investment banking

industry,

Arbitrator

The World Bank has been giv¬

investors

force, including

as

at¬

the conciliation and arbitration of

availability of

the President

and

Corpo¬

>

the

of

S.

foreign

Finance

International

foreign financing for U. S. busi¬
ness

International

Payments

of U.

and to increase the

of

Association

Development

Monetary Fund and of the Inter¬

Message of July 18 to promote the
sale

al

the

several

Washington from Sep¬
to

affili¬

its

and

program

6

of

Development

World Bank
members

nual

Committee

and

ated institutions—the Internation¬

ration.

Committee.

Chairman

Other Activities of the
/

Bank

April, 1963,

the

by

member

a

tember

1963.

companies

dat£

opposition

legislation. September to discuss the

legislation.
Under

Interest

used

were

were

representatives
Department

ury

concluded

the

are

the acquisition

(2)

the proposed

on

Several
IBA

Asso¬

IBA

IBA's

to the enactment

securities,

sive technical comments

re¬

testimony before the Ways

(1)

outstanding securities.

technical

ciation

the

which

of

services, and

of the world. Once

legis¬

S. persons for goods or

world's banker and trustee of the
currency

enact

area,

exemptions for

the

our

to

strongly recommended that there

than to endanger the free flow of
,or

this

memorandum

a

the

Development

Venezuela

525-4171, Area Code 504

The Commercial and Financial Chronicle

112

.

.

Thursday, December 26, 1963

.

Irving H. Sherman

Report of IBA Foreign

A. G. Becker & Co. Incorporated

New York, N. Y.

,

K. P. Tsolainos

Investment Committee
Continued

from

New

The proposal has now been given

New

Dillon, Read & Co. Inc.

Kuhn, Loeb & Co.

the

of

form

Over

this

the

next

draft

series

draft

a

is

six

to

convention.

months

or

discussed

be

so,

at

of conferences of legal

perts of the Bank's member
tries,

to

be

held,

New

York, N. Y.

Robert

F.

Seebeck

New York, N. Y.

ex¬

Morgan Stanley & Co.
New

through

Addis

in

Geneva

Ababa,

TABLE

Purchases of Foreign

It

concrete

conclusions

this

on

Net

Gross

65.6

0.4

490.4

42.6

—14.6

634.3

93.7

15.0

291.4

70.8

—18.0

311.5

1947

;

and
1948
„

and

II,

I,

up-to-date

Interest
was

Equalization

an

active

of

foreign

121.0;

908.4

300.6

,1,149.7

1952

329.6

35.8

677.4

182.1

1,007.0

uncer¬

1953

79.0

924.9

1,486.1

BY

72.2

303.4

(in most
of

these

months

cases

of

sold

were

vestors abroad). In

of

several

Gross

nese

and

877.9

214.3

509.4

—183.9

1,387.3

30.4

875.2

126.1

991.5

385.0

1.866.8

511.1

Austria

13,338

25

13,363

2, 051

621.9

29.1

1,392.0

693.11

2,014.0

722.1

Belgium

47,332

14, 543

61,875

10, 111

6, 861

803.7

336.4

1,026.1

2,718.8

1.362.5

Denmark

41,469

78

41,547

36, 191

-40

803.8

237.7

1,457.6

512.0

2.261.5

749.7

1,445.0

562.1

2,036.7

644.7

>

__

——.-

1958—

—

/ 48.8

Country

preciation

and

deep

gratitude

ap¬

to

Mr.

Amyas Ames, the President of the

IBA, to the members of the For¬
eign
to

Investment

the

lent

IBA

Committee

staff

for

cooperation

in

their

the

and

excel¬

work

of

the Committee during the year.

„

1,915.1

'

82.6 V

591.7

__

'

Finland ;

COMMITTEE
Andrew N. Overby,

370.0

1,262.4

460.4

2.228.0

833.4

103.9

2,037.3

944.0

2,843.2

1.047.9

-V

19631—

408.7

„

48.7

914.4:

1,432.1

Net

Total

Bonds

Purchases
Stocks

Total

Source:

1,000

■606

0

-606

134,299

37, 252

39, 509

76,761

41, 380

95,758

19, 018

12, 533

31,551

534

997

1,531

459

494

953

23,757

4, 397

28,154

-9, 504

'-3, 395

-12,899

~

The

above

data

related

the

total

140,

489

1,,

155,401

-30, 920

65, 007

34,087

548

47,681

23, 437

491

23,928

466

162

628

-24

•285

-309

1,889

1, 487

3,376

-2, 5^2

832

-1,740

Sweden

13,276

501

13,777

338

266

604

Switzerland

78,333

49, 964

128,297

-29, 959

20, 944

-9,015

5

18

23

-28

18

-10

-31,660

Spain

:

to

14,912

46,133

Portugal

Bulletins.
amount

of

debited

money

or

credited

U. S. Accounts as the result of transactions in foreign securities, including
securities.
The gross purchases figures reflect both new and out¬
standing issues.
The differences between the gross purchases and net pur¬
chases
figures primarily reflect:
(1)
sales of foreign securities by U. S.
investors to foreign investors;
(2) redemption of foreign securities, either in
the U. S. or abroad; and (3) purchases for sinking fund purposes.
to

Canadian

The

Turkey
United
Other

the

ciled

only

other

cover

of

securities

"U.

term

within

the

the

57,431

72, 720

130,151

-27, 579

-4, 081

51,903

1, 938

53,841

11, 353

1, 292

securities

501,007

Europe

409, 695

910,702

39, 018

t-

o

12,645

465

179,483

1,014,574 433,947-75,367

358,580

international

S.

Investors"

S.

U.

and

its

covers

all

territories

institutions

and

individuals

Canada

(1)

681,878 332,696

r:

Latin America

143,467

21,724. .% 165,191

98,286

6,077

Asia

104,363

182,872

31,418

214,290

147,484

27,758

175,242

127,356

5,970

133,326

48,124

1,640

49,764

0

389,955

166,347

-1,056

165,291

801,503

2,828,038

933,206

99,517

1,032,723

Other

Countries

International

389,955;,/

domi¬
Grand

and

possessions, with the exception
of foreign central banks;
(2)
countries; and (3) international organi¬

branches or
institutions of foreign

following:
official

Kingdom

Europe

Total

statistics

transactions
(including
transactions
organizations, such as the World Bank).
They do not include direct foreign investment by U. S. corporations, nor
do
they
cover
inter-company
account
transactions
of
U.
S.
non-banking
firms
with
their
own
branches
and
subsidiaries
abroad
or
with
foreign
parent companies. The statistics are based on monthly reports to the Treas¬
ury
Department by banks and security dealers and brokers on' transactions
with
foreigners for their own account and for the account of customers.
They, therefore, do not cover transactions carried out entirely abroad in
which a reporting institution is not involved.
.

in

36,151

0

Netherlands

'

Treasury

2,070
16,972

79, 448

Norway
t January-June.

19 "

54,378

Italy

S63.2

1,840,8

\

1,000

Greece

Total

2,026,535

agencies

Source:

April

zations.

I

Treasury Bulletin. Totals
because of unpublished revisions.
1963

differ

slightly

from

figuers

in

Table

Chairman

The First Boston Corporation
New

Stocks

54,851

,

Germany

965.6
805.9

of

FOREIGN INVESTMENT

Bonds

France

19621

The

Respectfully submitted,

of

Seller

feurope

1961—

in¬

other borrowers.

wish to express my

I

Purchases

1857.

1963

placements

V

/

addition, there

private

'

1956—

Ex¬

obligations of European, Japa¬

FOREIGNERS-I962

•

the

to

FROM

621.5

*

were

INVESTORS

217.9

.

substantial amounts

issues

U.S.

841.3

1955—-,—.

investment bankers in
seven

SECURITIES

'

publicly offered in the U. S.
first

FOREIGN

($ Thousands)

'

the

OF

6.8

-

.

Act—
in

Spencer Trask & Co., New York;

251.6

pal amount totalling $277,500,000
market by

de Selding,

Dunstan, Paribas Corporation, New York

644.9

„

;

1959

were

B.
F.

TABLE H

300.4

... __

1954

United

a

E.

377.0

1960

with

Mrs.

145.4

801.0

proposed

for

&

27.8

—

710.2

investment.

issues

—

76.4 '

princi¬

bond

382.3

Mrs. Edward

Mr.

94.8

24.4

__

in¬

cluding Canadian issue s,13 foreign
dollar

9.8

&

39.Q

—

198.2

Tax

year

388.2

reports,

investment bankers

States
field

the

bv

676.8

79.8 ?

—

348.7

1963—up until the time of
created

24.5

—

Mr.

—265.1

556.1

1950——.

which

III)

tabulations

cluded in previous annual

tainties

—265.5

1951——.

„

(tables

Net

Gross

Net

PURCHASES

1949___._.

bring

Purchases

Purchases

Gross

1946

matter.

Bonds and Stocks

——Bonds-

Purchases

.

As shown in Appendices A and
B

ft-

•

1

Year

present to the Board of Gov¬

ernors

'
•

Securities by U. S. Investors from Foreigners

Stocks

Directors of the Bank will be able

recommendations

.

($ Millions)

is

hoped that in 1964 the Executive
to

7

the

Bang¬

Santiago.

and

York, N. ,Y.

coun¬

,

kok,

Young

Smith, Barney & Co.

a

Commissions of the United

Nations,

York, N. Y.

John M.

courtesy of the four regional Eco¬
nomic

York, N. Y.

Arthur L. Wadsworth

Nathaniel Samuels

111

page

Baker, Weeks & Co.

TABLE

York, N. Y.

\V-."

HI

FOREIGN DOLLAR BOND OFFERINGS

Jacques Appelmans

(Offered by

White, Weld & Co.

(1962-1963)

Investment Bankers)

,

(Exclusive of Canadian and World Bank Issues)

New York, N. Y.
Concurrently
Amount

Eugene R. Black, Jr.
Lazard Freres

New

Co.

&

(000)

New

-Date of-

30,000

None

Pipeline Co.

Term

Rate

20

None

20

yrs.

30,000

None

15

yrs.

City of Oslo,

America, N. T. & S. A.

40,000
10,000

None

15 yrs.

Norway

Kingdom of Denmark

York, N. Y.

Government

of

New

Coal

&

Steel

Community

Offered

Dollars

1-23-62
3-13-62
3-28-62

100

4-3-62

98

5-2-62
5-7-62

97

99

1-15-82

3-1-62

3-1-82.

Dollars

4-1-62

Dollars

4-1-62

4-1-77
4-1-77

5-1-62

5-1-77

Dollars
Dollars

Dollars

None

15

None

15 yrs.

5

lA

5-1-62

5-1-77

5

iA

4-15-62

4-15-82

Dollars

5-15-62
6-1-62

5-15-77

,

Dollars

yrs.

25,000

None

20

yrs.

17,500

None

15

yrs.

15,000

None

15

Price

98 1/4

96.80

5.95

None

1/2
•96 1/2

5.71

None

5.85
6.50,

None

yrs.

5

5/8

6-1-77

Dollars

yrs.

5

7-1-82

Dollars

5

8-1-62

8-1-77

Dollars

10,000

None

15

yrs.

6

1/2
1/2
1/2

7-1-62

yrs.

9-25-62

9-30-77

Dollars

9-17-62

100

Nippon Telegraph & Telephone

18,500

None

15 yrs.

6

Commonwealth

25,000

None

20

'-20,000

None

15

Mitsubishi

Conv.

Company

Walter A. Everitt

Model, Roland & Co.

Tokyo

York, N. Y.

Heavy Industries

Debs.

of

Australia

Shlbaura Electric*Co.

Conv.

Debs.

None

None

20

Shin

None

None

5.33
6.41

15

Australia

5.40

None

None

Inc.

100,000

None

None

of

Co.,

Kingdom of Norway

York, N. Y.

3/4
1/2

5.65
5.4b

5.50

97

30,000

Commonwealth

Maurits E. Edersheim

-

Financing

/

5.47

20,000

Copenhagen Telephone

York, N. Y.

Bank

Yield

5.70

1/2
98 1/2

5-15-62
5-15-62
5-28-62
6-19-62
7-24-62

New

New

World Bank

Clause^

25,000

Zealand

Japan Development

Burnham and

Payment

20,000

Paribas Corporation

New

Maturity

1-15-62

High Authority of the European

Robert H. Craft

Issue

51/2
51/2
5 iA
5 1/2
5 lA

yrs.

Kingdom of Belgium

Tom B. Coughran

Bank of

Commonwealth of Australia
South Europe

1962

York, N. Y.

Concurrent

Offered

Short-Term Debt

96
>97

9-15-62

9-15-7T

Dollars

9-l8i-62

96

yrs.

5

1/2

10-1-62

10-1-82

Dollars

10-16-62'

99

yrs.

6

3/8

12-15-62

3-31-78

Dollars

12-11-62

•'

100

None

None

6.41"

None

'5.58
>

None

'•>!; ,-6.376

None

;
'

;

Joseph C. Fox

'

;

■

•

-

Totals

336,000

None

22,500

None

15

yrs.

6

';.30,000

None

15

yrs.

5

None

10

yrs.

6

Kidder, Peabody & Co.
New

York, N. Y.

1963

Japan' Development

Bank

Kingdom of Denmark
Kurt H. Grunebaum

Republic

New York Hanseatic

Corporation
New

.

of

'

Commonwealth
Mitsui

York, N. Y.

&

'

Finland

12,500

Copenhagen Telephone

'

,•

Co.,

of

Co.,

Inc.

Conv.Deb.

Dollars

1-30-63

96

1/2

6.37/>

Dollars

2-26-63

98

3/4

5.37

None

3-15-73

Dollars

3-12-63

98

3/4

6.17

None

4-15-63

4-15-78

Dollars

.4-9-63

98

4-1-63

4-1-83

Dollars

4-10-63

97

;

None

:

15,000

None

"15

yrs.

5

None

20

yrs.

5'':;

3/8

10,000

None

15

yrs.

6

3/8

25,000

Kingdom of Norway
Japan

2-1-78
3-1-78

3-15-63

30,000

Australia

Ltd.

,

2-1-63
3-1-63

1/4

None

15

yrs.

5

1/4

5

5.75

None

1/2

6.20

None

6

None

,

5-1-63

3-31-78

Dollars

4-23-63

100

5-1-63

5-1-78

Dollars

4-24-63

98

1/4

5.42

1/2

5-1-63

5-1-80

Dollars

5-1-63

97

3/4

6.71

None

3/8

5-15-63

5-15-78

Dollars

5-21-63

5.55

None

-

3/8

,

None

Incorporated
San

Francisco, Calif.

yrs.

15,000

15

yrs.

5

10,000

None

15

yrs.

/6

1/4

6-12-63

97

3/4

5.47

City of Milan

Mitchum, Jones & Templeton,

17

None

City of Oslo

Hutchinson, Jr.

27,500

City of Copenhagen

20,000

None

16

yrs.

6

1/2

7-1-63

7-1-78

Dollars

7-10-63

98

3/4

6.625

None

Mexico

Wm. N. L.

None

25,000

15,000

16

yrs.

6

3/4

7-16-63

7-15-78

Dollars

7-16-63

97.70

7.00

None

20,000

None

16

yrs.

5

3/4

7-15-63

7-15-78

Dollars

7-31-63

96

6.08

None

Nippon

//

Telegraph & Telephone

Charles E. Saltzman

Totals

-

262,500 '

16,000

;

6-15-63

6-15-78

Dollars

98.23

3/4

v

None

■"

Goldman, Sachs & Co.
New

York, N. Y.




*The
IBA

Committee

Convention

Report also
Supplements.

included

details
\

of

issues

offered

in

the

years

1956

to

1961

inclusive. This data

was

published in previous editions of the "Chronicle's'
:

Volume

Thomas

Boston;

198

Number 6328

.

.

.

The Commercial and Financial

Whiteside, Chace, Whiteside & Winslow,
W. Chandler, W. L. Lyons & Co.,

James

Louisville

W.

L.

Lyons, Jr., W.
Louisville, Ky.;

113

Chronicle

L. Lyons & Co., Louisville, Ky.; James W. Chandler, W. L. Lyons &
Paul O. Frederick, Fahnestock & Co., New York; Edwin J. Kleiman,
Vilas &
Hickey, New York

Claude

Co.,

C.

Richards, R. H. Moult on & Co., Los
Leo B. Babich, Hill Richards & Co., Inc.,
Los Angeles

Angeles;

Everybody talks about it
and

—

everybody at

Montana Power is

doing something
about it!
(Kuhn, Loeb & Co.), New York; Joseph A. Glynn, Blewer, Glynn & Co., St. Louis;
Callaway (First of Michigan Corporation), New York; Mr. & Mrs. John W. de Milha»*
Chase Manhattan Bank, New York

Mrs. David Miralia
Mrs.

David

The weather? No, we like our weather

it is. It's

area

development

something about. In
there

are

customers

trained
—

with

attractive

power

area

Burke,

Dean

Bache & Co., New York; William S. Shanks, The Bond Buyer, New Yorkj Jerome
Witter <fc Co., New York; James E. Roddy, Scharff <fi Jones, Inc., New Orleans

gas,

And this year we

country

—

our

service

:

both

area

electric
new

in¬

during the

-

begin

a

national advertising
—

the big sky

to industrial management.

We would like you to
company

Annual

for

rates

helped bring 335

to tell the story of Montana

program

our company

and potential.

industrial

and natural

past 10 years.

William M. Marlin,

way

development work, combined

dustrial customers into

J.

division of

every

the

talk about and do

people working with industrial

both present

Our intensive

we

know about

our

and state. A letter will bring

growing
you

our

Report.

iLtcrmciTY

Montana Power

COMPANY

Butte, Montana

Mr. & Mrs. Homer R.
Hirsch

&

Co.,

New

Berryman, Marine Trust Company of Western New York, Buffalo; Gilbert Bach,
York; Mr. & Mrs. Victor H. Zahner, Zahner and, Company, Kansas City, Mo.




The Commercial and Financial Chronicle

Mr.

&

Mrs.

Joseph

Mattison,

Estabrook

&

Co.,

Einer

Nielsen, J.
James

Boston

Richard
John

K. Buechler, E. F. Hutton
<£ Company, Inc., New York;
Latshaw, E. F. Hutton & Company, Inc., Kansas City, Mo.;

Theodore

C.t Sheaffer, Janney, Battles & E. W. Clark, Philadelphia

Leslie J. Fahey, Fahey, Clark & Co., Cleveland; Russell H.
Metzner,
Central National Bank, Cleveland;
A. H. Anastasia,
Dow, Jones <£ Co., New York
,

State and

C.
C.

Bradford

Bradford,

E.

W.

Bank,

Telephone MAin 2*3131




Dittmar

Dallas;

J.

&

C.

Co., Dallas; John S. Davis, Republic
Calvert, Austin, Dobbins & Calvert,

San

Antonio

Ui S. Government
Bonds

Rudolf

Seattle-First

M.

York;

Smutny,

R.

W.

Gerrish, Oscar E.

Heller,

Shearson, Hammill & Co., New
H. Stafford, Lee Higginson
Corporation/Nevr York

John

Pressprich

Dooly

Oscar E.

&

& Co., New York; Robert
Co., Miami; Philip M. Stearns,
Co., Miami

A. Alexisson,
Walston & Co., Inc., New York; Fuller
Harrington, Harrington & Co., Jackson, Miss.; Mr. & Mrs.
Wallace D. Johnson, David A. Noyes & Co., Chicago

Copies of Candid Photos appearing in this issue

269 East 205th

be purchased from

Gildenberg

Street, New York, N. Y. 10467

Teletype 206 998-0295

TUlip 2-3317
MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

G.

Dooly &

Gustave

Robert

National Bank

Thursday, December 26, 1963

.

.

may

Washington

.

James

,

^

Franklin,

National

Bonds

Seattle 24,

Co., Nashville; W. L. Lyons, Jr
W. L. Lyons & Co., Louisville;
Jr., J. C. Bradford & Co., Nashville; James W. Chandler,
:
W. L. Lyons & Co., Louisville

Charles
R.
Treuhold,
Paribas
Corporation,
New
York;
Robert
Stewart, Jr., Bank of the Southwest, Houston; Wilbur H. Frederking,
Fridley & Frederking, Houston

Municipal

BOND DEPARTMENT

&

.

A.
'

Volume

198

Number

6328

;

.

The Commercial and "Financial Chronicle

.

.

*

'

Camot W. Evans,

Co., St.

•»*-

115
'

i

Clark, Dodge & Co. Incorporated, New York; Eugene M. Reese, Newhard, Cook
Louis; W. Shannon Hughes, Raffensperger, Hughes & Co., Inc., Indianapolis;
Gerald D. Wyatt, A. E. Masten &
Co., Pittsburgh

■

&

t

;

,

,

'■

Alfred J. Ross, Dick & Merle-Smith, New York; Ernest W. Borkland, Jr., Tucker, Anthony & R. L.
Day, New York; John L. Gaerste, Cooley & Company, Hartford, Conn.; Julian K. Roosevelt,
_

Dick & Merle-Smith, New York

UNDERWRITERS-DISTRIBUTORS

Primary distributors of

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Teletype 303 292-1952

THIS YEAR.

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MAYBE SOME YEAR

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The Commercial and Financial Chronicle

116

Mr. & Mrs. W. J. Lawlor, Hornblower & Weeks, Chicago; George T.
Flynn, Hornblower & Weeks, New York

E. S. Lee,

New York; Mrs. George A. Newton (G. A. Walker &

Wilson

C.

J. Ivory, Jr., Simpson, Emery & Co., Pittsburgh; Sidney J.
Mohr, Jr., Hendrix, Mohr & Head, Montgomery; Joseph E. Refsnes, Refsnes, Ely, Beck & Co., Phoenix

Jerome J.
Weeden

Mr.

&

Mrs.

Milton

F.

Lewis,

A.

Becker

G.

&

Co. Incorporated,
Co.), St. Louis

A. Britten, Calvin Bullock
Ltd., New York; John McG.
Dalenz, Calvin Bullock, Limited, New York; Kirkwood B.
Cunningham, Cunningham, Schmertz
Co., Pittsburgh

Mr. &
and

Mrs. Parks B. Pedrick, Howard, Weil, Labouisse, Friedrichs
Company, New Orleans; James F. Reilly, Good body & Co.,
New

York

William A. Devlin, Reynolds
Co., New York;
Seibert (Commercial & Financial Chronicle), New

Brophy, R. S. Dickson




&

Co., Inc., New

.

.

Thursday, December 26, 1963

Valley National Bank, Phoenix; Mr. & Mrs.
Shaw, Hookery & Co., San Francisco

Melvih S

Jacobus,

Burke,
<ft Co.,

Dean Witter & Co., New York; W. E. Simon,
New York; George W. Hall, Wm. E. Pollock
&
Co., New
York

P.

Lincoln B. Nob let, First National City Bank, New York; Mrs. Peyton
R. Biddle (Philadelphia National Bank), Philadelphia; William R.
Crotty, First National City Bank, New York

Joseph E. Refnes, Refnes, Ely Beck & Co., Phoenix; Allen B.
Beaumont, William R. Staats & Co., San Francisco; Robert R.

James
R. Hendrix, Hendrix, Mohr & Head, Birmingham, Ala.;
John E. Froelich, Walter, Woody & Heimerdinger, Cincinnati;
William S. Magnus, Magnus & Co., Cincinnati

George

W.

Whitlock,

Hall,

Wm.

Ladenburg,

E.

Pollock

Thalmann

Miralia, Kuhn, Loeb

Mrs. Claude D.
York; Frank J.
York

.

&

&

Co.,

New

Co., New

York;

York;

Daniel

David

T.

& Co., New York

Brinker, John Nuveen

&

Co., Chicago

/

■-

i

Volume

J.

Victor

Loewi,
Milwaukee;

198

Number 6328

Loewi &
Mrs. W.

.

.

.

The Commercial and

Co. Incorporated,
G.
Redman

Allen B. Bogardus,

Floyd

(A, G. Edwards & Sons), St. Louis

Samuel

L.

Interstate

Financial Chronicle

David

Watling, Lerchen & Co., New York; Bertrand McTeague, Putnam & Co., Hartford;
H. Beatty, A. G. Edwards
Sons, St. Louis; David T. Sanders,
Vance, Sanders & Co., Inc., Chicago

F. Jones,

Mellon National

Bank, New York;

William J. Wallace, Mellon National Bank,

Pittsburgh

Varnedoe, Chisholm & Co., Savannah, Ga.; Mr. & Mrs. W. 01in( Nisbet, Jr.,
Corporation, Charlotte, N. C.; Mr. & Mrs. Erskine Duff, Powell, Kistler & Co.,
Fayetteville, N. C.; Lawrence Lyons, Allen & Company, New York

Varnedoe,
Securities

Mr.

&

Mrs.

D.

L.

Schutz,

Anderson, Chiles & Co., Omaha, Neb.;
Bateman, Eichler & Co., Los Angeles

Firm

John

C.

Trading Markets
in

Pacific Northwest Securities

JUNE S. JONES CO.
Established

.

WIRE SYSTEM:
Paris

Scott

Russell, Glore, Forgan & Co., New York; J. Logan Burke, Jr., W. E. Hutton
New York; John E. Eckelberry, Clark, Dodge & Co. Incorporated, New York;
John M. Perkins, Hemphill, Noyes & Co., New York




&

U.

Co.,
/

S.

BANK

PORTLAND 4,

1927

Gregory & Sons

BLDG.

226-4001

TELETYPE 503 224-1745

ORE.

f'

Pacific Northwest Securities

FIRST
NATIONAL
p TV "WTT

DiilM IV

BLANKENSHIP, BLAKELY & STRAND
INCORPORATED
ESTABLISHED

OF OREGON

EQUITABLE BUILDING

PORTLAND
THE FIRST NATIONAL RANK OF OREGON. PORTLAND

•

7

1929

4, OREGON

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Bell System

Teletype 503 224-1956

118

Fred

F.

Johnson,

Barcus,

Kindred

&

Co.,

Chicago;

Joseph

Ames, Kidder,
Peabody & Co., New York;
Lemkau, Morgan Stanley & Co., New York; George
Irving Lundborg & Co., San Francisco

Amyas

Bruce

Robert

Hudson
J. Otto,

B.

McConnel, Jr., Singer, Deane «ft Scribner, Pittsburgh;
Powers, Smith, Barney <ft Co., New York; John C.
Bateman, Eichler <fi Co., Los Angeles; Donald L.
Anderson, Chiles & Co., Omaha

A.

Schutz,

Jon

,

Burnham,
Burnham
and
Company,
New
York;
I.
W.
Burnham, II, Burnham and Company, New York; John H.
Gutfreund, Salomon Brothers & Hutzler, New York; Milton
S. Trost, Sfeij* Bros. <£ Boyce, Louisville




Robert H. Gregory, Gregory & Sons, New York;
Scott & Stringfellow, Richmond, Va.; William

F.

Lockett, Townsend, Dabney & Tyson, Boston; Richard J. Brashler,
Barcus, Kindred & Co., Chicago; John E. Froehlich,
Walter, Woody & Heimerdinger, Cincinnati

W.

The Commercial and Financial

'

Donaldson, Lufkin &

^

'

Jenrette, New York;

Gregory

,

&

Sons,

New

S. Buford Scott,
H. Donaldson,

Andrew M. Blum,

York

Chronicle

Richard

J. A.

Edward

H.

Keith,

Gunn, Midland-Osier Securities Ltd., Toronto; Clyde H.
Taylor\ Rogers & Tracy, Chicago; Glenn R. Miller,
& Co., Inc., Chicago; Calvin W. Clayton, Clayton,

Walston

/ Securities Corporation, Boston

.

Thursday, December 26, 1963

C. Hunsaker, Colonial Distributors, Inc., Boston; George B.
Fisher, Bosworth, Sullivan & Company, Inc., Denver;
David N.
Dattelbaum, A. G. Becker & Co. Incorporated, New York;
Edward J. Costigan, Edward D. Jones & Co., St. Louis

Ernest

N. Rand, Rand <£ Co., New York; C. M. Haight, Jr., Tripp
Co., Inc., New York; William A. Devlin, Reynolds & Co., New
York; Bracebridge H. Young, Second District Securities Co., New York

.

Jerome

Alger B. Chapman, New York Stock Exchange, New York; Howard
B. Dean, Harris; Upham & Co., New York; J. Philip David,
Underwood,
Neuhaus
&
Co.
Incorporated,
Houston

&

.

Childs,

0.

Dorbritz, Moore, Leonard & Lynch, Pittsburgh; J. Mabon
Chaplin, McGuiness & Co., Pittsburgh; Robert G. Stenger,
Milwaukee Company, Milwaukee

Flechlin, F. S. Smithers & Co., New York; Daniels C. Brasted,
Incorporated, New York; Francis J. Cullum, W. C.
& Co., New York; J. Thayer Raggio, William R.
Staats & Co., San Francisco

Evans & Co.,

Langley

George Rinker, Jr., The Ohio Company, Columbus; John X. Kennedy,
White, Weld & Co., Chicago; Hugh K. Brower, Harris Trust <fi
Savings Bank, Chicago; Robert C. Hawley, Harris Trust <fi
/
Savings Bank, Chicago

Volume

Lorin

T.

Briggs,

198

Blyth

Number

&

Co.,

6328

Inc.,

New

.

.

.

The

York;

Commercial and Financial Chronicle

Gerard

Greene,

John

C.

Legg

&

Co.,

Baltimore;

Charles B. Harkins, Blyth & Co., Inc., San Francisco; Philip O.
Rogers, John C. Legg & Co., Baltimore;
Walter V. Kennedy, John C. Legg & Co., New York; Frederick C.

Braun, Jr.,

/>

Richard
Mrs.

S.

Moseley

&

Co.,

New

York

Boesel, Hayden, Stone & Co., Incorporated, New York;
Hooper (Mead, Miller & Co.), Baltimore; Eugene C.
Hayden, Stone
Co. Incorporated, Chicago

William
,

John

E.

F.

Travis,

P.

Garveyy
C.

McDonnell & Co., New York City;
Rendigs, Bache & Co., New York

W.




Mr.

&

Charles

Cohen,
H.

C. Pierce,
Securities
H.

Dewar,

Harry W. Newhard, Newhard, Cook & Co., St. Louis; J. C. Bradford, J. C. Bradford & Co., Nashville;
Brownlee 0. Currey, Jr., Equitable Securities Corporation, New York; J. Scott Crabtree,
Equitable Securities Corporation, New York; John E. Eckelberry,
Clark, Dodge & Co., Incorporated, New York

Rauscher, Pierce & Co., Inc., Dallas; Manuel F.
&
Exchange Commission, Washington,
D.
C.;
Dewar, Robertson <£ Pancoast, San Antonio

Mrs.

Henry Lee Valentine II, Davenport <& Co., Richmond, Va.; Hudson
B. Lemkau, Morgan Stanley <fi Co., New York; T. M. Keresy,
Model, Roland & Co., New York
.

Clinton

Chandler (W. L. Lyons & Co.), Louisville, Ky.; Mrs. Howard Finney

Stephens, Alex. Brown & Sons, Baltimore; McKee Nunnally,
Co., Atlanta; Harry A. Jacobs, Jr., Bache <& Co., New York

Courts &

'

*

The Commercial and Financial Chronicle

J

Sanford

B

Robert

Hattier

Stevenson

Assertion,

T.

David

&

III

Sanford,

New

Investment

Washington,

D.

Orleans;

Bankers

C.

Johnson, Lane, Space & Cp.,
Robert Towbin, C. E. Unterberg,
Co., New York

Johnson,

Savannah;

A.

Towbin

,

Mr.

&

Mrs.
New

Donald
York

C.

Chemical
New York

Patterson,

Trust Company,

Bank

J-. Logan Burke, W. E. Hutton <fi Co., New York;
Charles

L. Stout, Robert

Garrett & Sons, Baltimore




Raymond D. Stitzer, White, Weld & Co., New York; Edwin F. Peet, Burns Bros. & Denton, Inc.,
New York; Frank L. Newburger, Jrs, Newburger & Co., Philadelphia; H. Edward Patterson, Burns
Bros. & Denton, Inc., New York; Gustave A. Alexisson, Walston & Co., Inc., New York

Charles F- Morgan, Morgan Stanley & Co., New York; John C. Hagan III, Mason-Hagan, Inc.,
Richmond, Va.; Joseph B. Wise, Mercantile National Bank at Dallas, New York; Mrs. John C. Hagan;
Robert B. Rawles, Abbott, Proctor & Paine, Richmond, Va. /
^

P.

Fred

Fox, P. F. Fox & Co., New York; Harry A. Michels, Allen & Company, New York;
Koerner, Allen & Company, New York; Eugene Lynn, Wertheim & Co., New York;
Kurt H. Grunebaum, New
York Hanseatic Corporation, New York

Ralph J. Powelson
Orlando;

Leedy,

Wheeler

John W. Ahearn, State
'

Boston

&

Street

Alleman,
Bank,

Charles
Omaha;

F.
H.

Heider,
H.

Davis,

Irving

Storz-Wachqb-Bender

Co.,
Co.,

Kirkpatrick-Pettis

.

Thursday, December 26, 1963

-Mr. & Mrs. Harrison Clarke, Johnson, Lane, Space
& Co., Atlanta

'

,

C.

Daniels
New

York;

Brasted, Evans &
R. George LeVind,
New

R.

C.

Walter

Jr.,

~
Omaha

.

.

V

Co., Incorporated,
Blyth & Co., Inc.,

York

Chapman, Fulton, Reid & Co., Cleveland;
B. Carleton, Fahey, Clark & Co., Cleveland

Anthon

H.

French,

Lund,
Francis

(formerly
I.

duPont

with
&

SEC);

Co.,

New

John
York

S.

Volume

198

Number

6328

.

.

The Commercial and Financial Chronicle

.

121

OF

ROSTER

ADVERTISERS
/

Page

ALABAMA

INDIANA

BIRMINGHAM

INDIANAPOLIS

Sterne, Agee & Leach
Stubbs,

Watkins

110

&

Inc.

Lombardo,

Inc.

r_.

,

NEBRASKA

Hughes

Raffensperger,

''

Page

Page

Co.,

&

'

OMAHA

and

Reynolds

Company

Royal

Saxton

JERSEY

NEW

ELIZABETH,

LOS

X

ANGELES
&

(The)

Bankers

(Hugh W.)

Crowell, Weedon & Co.

91

Sanford

&

Hattier

88

Howard,

N.

T.

&

S.

Co

Back

92

HI

1

Co.

&

Jones,

Denault

Inc.

111

—

Adams

California Company

Schwabacher
Stone

&

Sutro

Inc.

Barrow, Leary & Co.

HI

—

91

u:.

Fargo

Witter

93

93

__

Bank

(Dean)

89

Co

&

91

(A. E.)

Asiel

Co.

MARYLAND

(Robert)

Garrett

&

103

Sons

Stein

&

Bros.

Boyce—

(C. T.)

&

Boland, Saffin, Gordon & Sautter
Briggs, Schaedle

Bullock,

102

:

Burns

&

Eaten

Howard,

Massachusetts

Putnam
State
,

r

Scranton

(Chas.

W.)

Co.___.

&

3

York

<•'

•

Power

'■

Corp..

Almon, McKinney & Dudley,

;;V.

'

/'

'

69
Inc.

Co

&

109

Cullom)

Co.

&

Lemon

&

Co.

Securities

Corporation

First

OHIO

34

McDonald

75

Faulkner, Dawkins & Sullivan

of

Co.

Co

F.)

&

23

Co.

&

Trust

i

Prescott

41

Russell (J. N.)

...

Co., Inc...

Eddleman, Pollok
Fridley

&

76

Rowles,

Winston

77

Co.

Bantel

Ohio

HOLLYWOOD

BEACH

Dain

Hollywood Beach Hotel

107

(J. M.)

First

& Co., Inc..
Bank

National

81
81

.

JACKSONVILLE

(The)

'

National Bank

Jacksonville

Northwestern

101

_

National

Bank

of

(The)

74

-

& Co., Inc

ORLANDO
101

Kalman &

Company

&

PAUL

ST.

Inc.

Stieglitz
&

Trust

&

Co

24

Partners

Hayden, Stone & Co.,

&

105

Company of Georgia

(H.)

Hettleman
Hirsch

&

&
&

Co

i

108

l

•-

&

American
Trust

National

Bank

and

Company

63

65

Becker (A. G.) & Co., Inc.
Ellis

&

KANSAS

Laird,

CITY

Bissell

67

Maine

Parker/Eisen/Waeckerle/Adams
&

Purcell,

Inc

I

84

67

Stern

Brothers

&

Co.

84

Trust Co.

&

Davis
First

(The)

&

Co..

National

63

Bank

of
63

Company, Incorporated

McDougal
Northern
Nuveen
Selected

Stifel,

&

Condon,

(The)

(John)

&

Nicolaus

,

Co.

& Sons

(Edward D.)

83

Co.

82

Mercantile Trust Company

83

&

Newhard, Cook &

67

Scherck, Richter Company

63

Simon

(I. M.)

Western Power & Gas

Company.

Inc.

:

Co.

82

82

& Co.

,

83

-4




Midland

26

MONTANA
BUTTE

48

Power

Company

National

Bank

of

Company

Jones

104
105
104

Stringfellow

Foster

&

Marshall,

104

Inc

115

Inc.

Harper (Wm. P.)

115

& Son

National

&

Co._I

Bank

115
114

WISCONSIN

PENNSYLVANIA

MILWAUKEE

PHILADELPHIA
Butcher &

Drexel

Loewi

Sherrerd

&

Co.

47

Janney,

35
;

Battles

&

W.

E.

52

CANADA

&

55

Company

(The)

WINNIPEG, MAN.

Clark,

T

55

Company,

...

Inc.

Ames

54

Bell,

49

■

Moyer, Fricke

Incorporated

42

Burns

&

Hulme,

54

;

Kay, Richards & Co

r

Thomson

and

Hanseatic

Masten

Company
.

Applegate

&

&

Co., Inc

&

&

Co., Ltd.
Co.

&

43

Limited.

44

Ltd

44

Denton,

Canada

&

47

47

Harris

69

&

(A.

McKelvy

&

E.)

&

Company

Company

,

Greenshields

56

Kippen

59

&

Nesbitt,

Moore, Leonard & Lynch

59

Simpson, Emery & Co., Inc.

56

Singer, Deane & Scribner

57

Royal

46

Thomas

59

So'ciete

Company

Securities

&

45

Limited

42

Limited

Co.

46

MONTREAL, QUE.

59

18

&

Limited

Humphrey,
56

45

Partners

Walwyn, Stodgell

13

Co

42

Ltd.

24

Corporation

Bros.

Midland-Osier

Co..

Inc.

Research

(A. E.)

Gouinlock

Equitable Securities

PITTSBURGH

51

Co., Inc
&

Sons

McLeod, Young, Weir & Co. Ltd.

French

38

&

&

TORONTO. ONT.

Bank

Wellington

(James)

54

Schaffer, Necker & Co.

Morton

Securities

Richardson

National

Chaplin, McGuiness

Corporation

68

52

Inc.

Woodcock,

Corporation

Co., Incorporated

53

Company

Newburger

25

L

&

53

11

(W. C.)

....

Inc.

117

36

Pitfield

&

Seattle-First

(June S.) Co..

Philadelphia

37

Weir, Inc

Canadian

York

Mason-Hagan,

Grande & Co.,
117

31

Fulton)

Phelps, Fenn &
113

(The)

49

Pershing & Co.

'■

Montana

First

Model, Roland & Co.

New

/,

15

,

Co.

(W. H.)

Co.^,1..

SEATTLE
117

Morgan Guaranty Trust Company

National

Paine.

&

Fidelity-Philadelphia Trust

24

Rhoades & Co.

Inc.

67

68

Corporation

Young,

&

(F. W.)

Blakely,

Elkins, Morris, Stokes & Co...

Lynch, Pierce, Finner

Nesbitt,

Services,

•

(A. G.)

48

& Co., Inc.—

McLeod,

&

Inc.

37

& Smith Inc.

60-61
Co

Investors

Supervised

LOUIS

65

Inc.

Trust Company.

Investments

Edwards

Jones

Chicago
Illinois

ST.

65

(Ralph W.)

&

(Robert

Merrill

Continental Illinois National Bank

97

WASHINGTON

38

Meeds

McDonnell & Co., IncT.
'

Simmons

&

Co., Inc.

Brothers.

85

r

&

Blankenship, Gould

38

& Co.

(Carl M.)

Mabon

Commerce Trust Company

96

RICHMOND

PORTLAND

;

Inside Back Cover

Lord, Abbett & Co.

85

95

Hart, Inc....

Company, Inc

35

Snyder

Higginson

Loeb

Barret, Fitch, North & Co.__

Bacon, Whipple & Co.

Blunt

^

97

OREGON

37

&.

19

Lehman

4

;

& Co...

47

Lee

Pancoast^

38

,

MISSOURI

&

36

Co..

Co.

Lebenthal

''

31

King (Charles)

Cady & Company

&

Company, Inc.

Craigie
75

Oregon

Kidder, Peabody & Co.

105

CHICAGO

45

;

Hutton (W. E.)
Ingalls

COLUMBUS

ILLINOIS

20

Inc.

,

MISSISSIPPI

x

&

Scott

12

Kenny (J. J.) Co,
Courts

Russ

&

Hobbs

36

...

Co.

Ripley & Co., Inc.

,

Funk,

Abbott, Proctor

YOUNGSTOWN

;;

Butler, Wick & Co.

29

Harris

80

Robertson

Dittmar

43

Harriman

80

Dewar,

,

76

27

Co.

Incorporated

Company, Inc.

98

ANTONIO

77

Bank

Rico

80

Shaughnessy & Co., Inc

GEORGIA

14

81

Hentz

Leedy, Wheeler & Alleman, Inc._

...

74

Sweney Cartwright & Co.

41

Co., Inc.

Hardy & Co.

'

Piper, Jaffray & Hopwood...
.

&

Hallgarten

Minneapolis

of

&

Development

Puerto

Halle

80

o

99

Co.

10

Gregory & Sons

of

Minneapolis

Atlantic

Co.

&

(Geo. B.)

Greenshields

Company

&

98

VIRGINIA

Management,
50

Government

Allison-Williams

Fosdick, Inc.'

COLUMBUS

29

&

Goodbody & Co

MINNEAPOLIS

&

Frederking.

SAN

74

Co., Inc.
&

76

|77

Company

Merrill, Turben &

22

.

Co., Inc..

Research

Garvin,

of

99

75

...

a

Co

Murch

&

Co.

Co.

13

Inc.

78

.

94

WORTH

(Albert)-Guenther Law,

Fund

78

(The)

28

Corporation.

Michigan Corp.

(P.

95

HOUSTON

Estabrook

Boston

99

Worth

76

(The)

Co., Inc.

National Bank of

Fort

CLEVELAND

I.

&

95

Company

11

&

99

109

Joseph, Mellen & Miller, Inc.

MINNESOTA

FLORIDA

&

98

94

Walker, Austin & Waggener
Carolina

32

72

__

Company
Inc.

Rauscher, Pierce
&

Inc.:

39

Co.

&

(Francis I.)

Gibbons

Johnston,

Turner,

Bank in Dallas.

Co.,

RALEIGH

Hayden, Miller &

Fox

Watling, Lerchen & Co.

&

Sanders
-

72

t

Southwest

Perkins

Kistler

40

Inc.'

Co., Inc..

National

First

FAYETTEVILLE

Powell,

25

Pont

Frank

&

&

First

70

...

A.)

94

Lppler, Guerin

CAROLINA

70

:

(Charles

NORTH

Fulton, Reid & Co., Inc.

First

Parcells

72

Mohawk

40

du

108

TEXAS

20

Co.

&

Bank.l

DALLAS

Niagara

Cleveland

51

Inc..

Chrysler Corporation

National

•>-

Securities Co., Ltd.

(C. J.)

Drake

of
108

Planters

69

Curtiss, House &

DETROIT

Hodgdon &

Co.

&

51

71

/

Dabney & Tyson

COLUMBIA

Folger, Nolan, Fleming & Co., Inc.

(George D.B.)

41

Bank..

New

(Shelby

&

Bank

T

45

Trust

1

Company

National

Memphis

36

Emanuel, Deetjen & Co

Distributors,

(The)

&

...

Group, Inc

73

WASHINGTON

(Arthur)

Dominick.

,

MICHIGAN
OF

First

Distributors

50

&

44

Company

(The)

First

DISTRICT

MEMPHIS

12

Dominick

Inc.

Bank

Street

Townsend,

'

•

48

—

Fund

Bank

Trust

Devine

Boston

HAVEN

Co..,

32

Denton, Inc.

Manhattan

Davis

Fund

Shawmut Bank of

National

HARTFORD

NEW

&

SYRACUSE

39

Foundry Company

Daiwa

Incorporated.

Life

Distributors,

-■■:r

Bonbright

49

Company.

Bros. &

Chemical

BOSTON

,

&

109

TENNESSEE

26

FORT
'✓

73

:

41

Co., Inc

&

Ltd.,Calvin

Burnham

Co., In6.___ ,102,

Co.

24

v

Chase

Co.

21

Hickey

5

102

—

Co....

Mead, Miller &

G.)

Cover

Co., Inc.

&

(Alester

,

Front

ROCHESTER

33

——

103

(John C.) & Co..

Legg

V

&

(B. J.)

CAROLINA

GREENVILLE

■

Furman

Union

37

103

DENVER

Putnam

Co.—

&

Co., Inc..—

BIyth &

MASSACHUSETTS

CONNECTICUT

——

—__—

.

Bear, Stearns & Co

Co..

&

Watts

Baker,

COLORADO

115

Co.

Stevenson

Central

Inc

&

K

40

Bell, Gouinlock & Co., Inc...—44

Williams

Coughlin & Company,

Ingen

SOUTH

30

Bacon,

BALTIMORE

'f''

Inside

28

&

73

16
...

I

Company

14

Co.

&

of

...

& Co., Inc.—"43

Bache

93

Co

Co

Co.

—17

&

Auchincloss, Parker & Redpath—

92

Stern

Youngberg.

&

Wells

&

&

Wiesenberger
28

Peck—

&

Allen

87

Co._

Lawson, Levy, Williams &

(Spencer)

Wertheim & Co.

CITY

Bank

Island

10
34

51

_

YORK

YORK

NEW

Ames

86

First

Co.

White, Weld

Fried-

92

Crocker-Citizens National Bank__

Bank

State

NEW

Cover

Brush, Slocumb & Co. Inc.

&

&

Vilas

SHREVEPORT

A._

&

S.)

(F.

Inc

Tripp & Co., Inc.

-HI

&

Scharff

FRANCISCO

(J.)

39

& Mackie,

:

Labouisse,

Weil,

of America,

Barth

&

Rhode

National

30

Van

richs

Bank

A.)

Industrial

33

Co., Inc..:

Trask

ORLEANS

NEW

90

California Bank

SAN

(The)

Templeton,

Incorporated
United

National

LOUISIANA

87

& Co
&

Co., Inc.__

&

110

PROVIDENCE

42
45

Hutzler.;

Troster, Singer & Co.
90

Lester, Ryons

Jones

Co..

87

Bingham, Walter & Hurry, Inc._

Mitchum,

Bond

(G.

&

Smithers

49

NEWARK

Co.

Inc.

Brothers

ISLAND

^40
9

Singer, Bean

LOUISVILLE

Long
-

Bateman, Eichler

Co.__

Schapiro (M. A.) & Co., Inc.

KENTUCKY
CALIFORNIA

Transfer

Page

RHODE

22

(James) & Sons, Inc.

Securities,

Salomon

110

Page

,

Co.

&

Co.

&

Richardson

107

...

107

—---•

(R. W.)

Registrar and

-

Chiles

Pressprich

Inc.

43

Company, Inc.

Thomson

and

Company

Limited
Pitfield

45

(W.

C.)

Securities
de

46

&

Co.

Corp.,

Placements

Ltd

46

Lti.

45

Ltee

46

The Commercial and Financial Chronicle

B.

Houston, Dallas Union Securities Co., Dallas; Herbert
Anderson, Distributors Group Inc., New York; W. Russell
Barrow, Barrow, Leary & Co., Shreveport, La.;
/
;
Paul L. Mullaney, Mullaney, Wells & Co., Chicago

Franklin
R.

.

,

A. Cary Cox, R. S. Dickson & Co., Inc., Charlotte, N.
Westervelt, Howard, Weil, Labouisse, Friedrichs and
New Orleans; Andrew J. Lord, Eaton & Howard,
;
Beverly W. Landstreet, III, Clark, Landstreet

C.; Paul T.
Company,
Boston;
&

L. Ray, Mercantile Trust Company, St. Louis; Julien H.
Collins, Julien Collins & Company, Chicago; Edward C. George,

Midwest

Stock

Exchange, Chicago

Mr. & Mrs. Allen J. Nix, Riter & Co., New York;

Ladenburg,

Homer O'Connell,
Thalmann & Co., New York; Ernest W. Borkland, Jr.,
Tucker, Anthony & R. L. Day, New York

K.
Hardy, Jr., The Illinois Company, Chicago; Ray F.
Myers, Continental Illinois National Bank, Chicago; Matthew, J.
Hickey III, Hickey^ & Co., Chicago; James Stenson, "
Continental Illinois National Bank, New York

Edward




First

Thursday, December 26, 1963

Mr. & Mrs. Edward M. Rowan, R. W. Pressprich & Co., New York;
Mr. & Mr?. Henry Earle, First of Michigan Corporation, Detroit
/'

Watson, Value Line Securities, Inc., New York; Serge Hill,
National City Bank, New York; Edmund C. Byrne,
Phelps, Fenn & Co., New York

Robert

L. Dewar, DevUar, Robertson & Pancoast, Dallas; Alger B.
Chapman, New York Stock Exchange, New York; Herbert R.
^
Anderson, Distributors Group, Inc., New York

V

.

,,

Lawrence W. Morgan, Lord, Abbett & Co., Chicago; Mrs. Donald L.
Anderson (Chiles & Co.), Omaha; Alvin H. Berndt, Lord, Abbett
<6 Co., New York; E. H. Stein, Scherck, Rickter & Co., St. Louis

Gavin H.

.

Edmund G. O'Leary, Eastman Dillion, Union Securities & Co., New
York; Richard B. McKinney, Taylor & Co., Beverly Hills; Alfred J.
Bianchetti, J. A. Hogle & Co., New York; Eugene M. Reese,
Newhard, Cook & Co., St. Louis

Kirkpatrick, Nashville

Thomas

.

V

:'

T.

E.

Graham, First National Bank, Ft. Worth; John S.
Republic National Bank, Dallas; Hugh D. Dunlap,
Goodbody & Co., Dallas

Wilbur

H.

Popper,

Davis,

Frederking, Fridley & Frederking, Houston; Elvin
I. M. Simon & Co., St. Louis; James W. Wolff,
Zuckerman, Smith & Co., New York

K.

Volume

198

Number

6328

.

.

Convention Number

.The Commercial and Financial Chronicle

■ BOSTON
III

„

PROVIDENCE^
HARTFORDJ?

,vv\vt

DETROIT

CHICAGO
CLEVELAND

SAN

NEWARK#

FRANCISCO




LOS

ANGELES

DALLAS

0
J

HOUSTON

u

COAST

Minutes after
our

your

they

are

office receives

bonds for bids,
shown to

200 Dealers

over

throughout

TO

before

Minutes

COAST

an

announced

closing time, (on lists of bonds

we

receive the last

for

we

can

bids),

we are

chanically and
to

equipped

personnel

accept hundreds of bids.

me¬

wise,
>

the country.

to you

the

submit the

bids,

high bids

in dollars, eliminating

necessity of dollar

figuring by the bidders.

Realize loo, the cost of this
Your

Minutes after

only cost is

our

"high speed service" is absorbed entirely by

"Vs" commission, that is, if the bonds trade.

J. J. KENNY
Where the

CO., INC.

Secondary Marked Cornea First

Dlffbu 4-0440

.

212-671-0020

us.

The banks of California find

a

challenge and

bility in financing the growth of California. It is
done well.

They have provided

a

dates

a

responsi-

job they have

major share of the funds to supply

community facilities and services to 10 million
In the year 1962

a

new

citizens since 1945.

alone, California banks and their underwriting

asso-

purchased 65% of the $850 million bonds offered in the state.

Bank of America




underwriting syndicates bought

a

total of $427

million,
ment

50%, of the bonds offered in 1962. These syndicates have

as many as

dealers

and

430 members in

banks

one group,

representing invest-

throughout the United States, assuring

broadest distribution for California bonds.
This is

a

measure

of the

the Bank of America in

importance of the banks of California and

promoting sound community growth through

municipal financing, in the nation's most diverse and populous state.

MUNICIPAL BOND DEPARTMENT
J.

or

included

OF AMERICA
National Trust and

Savings Association

.

i0S