Full text of Commercial and Financial Chronicle : December 29, 1960, Vol. 192, No. 6016

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The COMMERCIAL and FINANCIAL

'Si

ESTABLISHED 1889

Reg. U. S. Pat. Office

Volume

192

Number 6016

New York 7, N. Y.,

AS WE SEE IT

Editorial
n^l

rv-p

T\/Tv»

P\lllrvv>

The selection of Mr. Dillon

vtvr

/\P

ministration and

said

that

Cents

Copy

official of the Eisenhower Ad¬

registered Republican is thus being
placed in the new Cabinet. Some observers had been
wondering what the President thought of this appoint¬
ment, in view of what he and candidate Nixon had been
saying about the fiscal recklessness of the Democratic
party. It is now revealed that both the President and the*
Vice-President had strongly urged Mr. Dillon not to take
the post in the successor regime without definite (and
according to report, written) assurance from the Presi¬
dent-elect that he would be given a "free hand" to make
sure
that certain promises in the Democratic party
platform are not kept. The President-elect rejoins with
a statement that Mr.
Dillon had agreed to accept the
"Kennedy financial policies," while Mr. Dillon himself
has

Price 50

What's in Store for the Economy

-MV*

Secretary of the Treasury
in the Kennedy Administration is developing into some¬
thing of a political cause celebre. A good deal is being
made of the fact that

Thursday, December 29, 1960

between

understood

the

By Eugene M. Thore,*

A foretaste of the
gram

pro¬

industry's

complex of national objectives. The indus¬

try is advised to devote full-time to Federal developments
and to improve

Though ex¬
increased
tempo is seen for these areas: education, depressed areas,
aged medical care, minimum wages, housing, taxation of
mufuals, and insurance regulation,
tensive

infra-industry communications,

legislative changes are not anticipated,

to appraise the November
standpoint of the personal
attempt to forecast what
may be in store for the insurance industry.
This
is
a
bewildering assignment
which has h&unted me night
have been requested

election results from the

insurance business and to

President¬

they would "work toward" a sound
fiscal and financial situation, or words to that effect.
It is evident that all this is a tale of little meaning
although the worcfe at times may be strong. One can
scarcely imagine a newly elected President about to take
office giving one of his official family carte blanche to
proceed as he thought best in such basic matters as those
which will govern and must govern the fiscal and finan¬
cial position of the Federal Government. Still less im¬
aginable is it when the appointee is an officer of the
outgoing Administration presumably more or less in
sympathy with its policies and programs. And, if in fact
the President-elect did so in this particular instance,
question would inevitably arise concerning his good faith
or

Kennedy Administration's legislative

stresses problems Involving the insurance

relationship to

elect and himself that

either in the action thus taken

Vice-President and General

Counsel, Life Insurance Association of America

and day since the election. At
I was tempted to employ

first
the

"often

wrong

never

doubt"

technique in the hope
that my conclusions would be
forgotten long before events
might contradict them. But ex¬
perience has taught me that
insurance men have good mem¬
ories.
if

have

During the last decade Federal developments of
to the personal insurance business have
been manifold. We have observed constant change
in the Social Security System, such as the rapid
and sometimes excessive liberalization of benefits,
the addition of total and permanent disability
benefits, and more recently pressures for medical
care coverage for the aged. There has been a veri¬
table avalanche of problems in the fields of cor¬
porate and personal income and estate taxation
which has occupied much of our time and energies.
Federal action in the regulatory field has also
expanded, involving such matters as insurance
advertising, disclosure of insurance details with
respect to pension and welfare plans, Securities
and Exchange Commission regulation of the new
interest

variable

annuity, and the Congressional investi¬
gation of state regulation and practices in the fire
and casualty and other insurance

fields. There was
in the inflation picture.
specter of creeping inflation

substantial improvement

Nevertheless,

the

continued to threaten

decided that,

must

attempt vto forecast
the political mysteries of the
future, I shall do so only with
a
cautious,
uncertain confi¬
dence. In defense of my timid¬
ity may I point out that even
I

Congressional leaders insofar as they have been
made public.
However, there is an additional
ingredient which is most essential to the alchemy
of prediction. That ingredient is past experience.
So I propose first to take a quick look back over
the years in the hope that we will better under¬
stand where we are today as well as what we may
expect in the future.

and created

inflation

psychology throughout the country.
We

cannot go into greater

mention all of
last decade.
Eugene M. Thore

detail here

Federal experiences during the
But as I reviewed this record in its
our

It is self-evident that any speculating we do now
must be based upon the issues of the recent cam¬

entirety I came to the conclusion that we have
been through a period of considerable progress at
the Federal level; one in-which an unusual number
of problems peculiar to our business have been
resolved in one way or, another; one in which
answers
have been given to questions of great

paign and the announced views of the successful
candidate taken together with reactions of key

in the various state¬

emerged

the

ments made by him and in his behalf during the autumn
campaign. Nor does the statement made by the Presi¬
dent-elect about Mr. Dillon's acceptance of the Kennedy
policies afford much enlightenment. No one knows, or
at least the public does not know,
(Continued on page 23)

most

cation

venturesome

something

regard political prognosti¬

less

than an

science.

exact

concern;

from which personal insurance haswith a better
(Continued on page 22)

one

Underwriters and distributors of

STATE, MUNICIPAL AND

A HAPPY NEW YEAR TO ALL

PUBLIC HOUSING AGENCY

U. S. Government,

Public

BONDS AND NOTES
Dealers in and Distributors

Housing,

State and

Municipal

Securities >

BANK LIMITED
...

HAnover 2-3700
-

AND

MUNICIPAL

Bankers to

BONDS

Associate Member American Stock

Exchange
Members Pacific Coast Exchange

the FIRST NATIONAL CITY BANK

BURMA,
ZANZIBAR,

INDIA, PAKISTAN, CEYLON,
BOND DEPARTMENT
30 Broad Street

New York 15

KENYA, TANGANYIKA,

ADEN, SOMALI REPUBLIC,
NORTHERN AND SOUTHERN

Federal Intermediate Credit Banks

Federal Home Loan Banks

Cooperatives

Federal National Mortgage Association
United States Government Insured Merchant

Marine Bonds

Offices

the Government in: ADEN,

Federal Land Banks

Banks for

Members New York Stock Exchange

SQUARE, S.W.I.

Branches in:

Co.

62$ So. Hope Street, Los Angeles 17,

KENYA, UGANDA, ZANZIBAR

COMPANY

California

PARLIAMENT STREET, S.W.I.

13 ST. JAMES'S

NEW YORK

STATE

Branches

London

CHEMICAL BANK

TRUST

'Head, Office:
bishopsgate, LONDON, E.C.8.

Lester, Ryons

26,
telephone:

of Securities of

NATIONAL AND GMNDLAYS

Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beach,
Oceanside, Pasadena, Pomona, Redlaads,
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier
Inquiries Invited

OF NEW YORK

Southern

International Bank for Reconstruction

and Development (World Bank)
1

Teletype: NY 1-708

New York

Correspondent

—

THE'

Chase Manhattan

California Securities

UGANDA,

Bond Dept.

and

BANK

Pershing A Co.

HAnover 2-6000

RHODESIA

Net Active
-To Dealers,

Maintained
Banks- and Brokers

MUNICIPAL. BONDS

Markets

canadian

CANADIAN

securities

T. L.WATSON &. CO.

BONDS & STOCKS

FOR

Members
New York Stock

American

Exchange

Block

CIVIC

Inquiries Invited

IMPROVEMENT

Commission Orders Executed On All
Canadian Exchanges

Stock Exchange

CANADIAN DEPARTMENT

Teletype NY 1-2270

25 BROAD STREET

direct Vires

NEW YORK 4, N. X

to Montreal and Toronto

Goodbody.& Co.

MUNICIPAL BOND

Dominion Securities
Grporation

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT,

V PERTH AMBOY

CALIFORNIA'S

ESTABLISHED 1832

hROADWAY
NEW YORK

I NORTH LA SALLE ST.
CHICAGO
*

Exchange Place,; New York. 5, IL Y.

Teletype NY 1-702-3

WHitehaU 4*8161

DEPARTMENT

bank of America
'

N.T. &S.A.

SAN FRANCISCO

•: LOS ANGELES

The Commercial and Financial Chronicle

(2666)

I Like Best...

The Security

Banks, Brokers, Dealers only

For

A continuous forum in

nationwide

Our

sys¬

with

and large
you

assures

service, and

depend¬

able executions.

Markets in

Primary

The company

than

500 Over-the-Counter Issues.

for

the

tal

supply in-

Member

Stock

American

Exchange

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

compounded

rate

is slightly better
record of the industry

the

than

Will
This

growth

Hospital Supply

leader, American

IN JAPAN

Corporation.
Write

for

Monthly

our

Stock

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

picture

the Japanese
as a whole.

economy

Telephone: BOwling Green 9-0187
This is not

offer or

orders for any

Sales

1959.

61 Broadway, New York 6, N. Y.

in
for 1961 will reflect

particular securities

Tacoma,

and

Seattle

cated

Wash.

This acquisition gave

and

Will

Coast branch

towards the populous

move

branches

Other regional
located in Atlanta,

are

and

Dallas

Albany,

Baltimore,

Minneapolis.
Earnings
mated

For the

VIRGINIA

CAROLIN

this

been

paid

consecu¬

tively for 25 years and are cur¬

at the annual rate of 60
cents, plus 10 cents extra, up from
0.375 cents last year.
A further
increase in the dividend early in

rently

&CO

fw.

RICHMOND,

esti¬

are

conservative

have

dends

CAROLIN,

SOUTH

per

18% over the $1.70
reported last March. In 1959 Will
Ross reported earnings per share
of $1.44 which included 16 cents
of
non-recurring income.
Divi¬

WEST VIRGINIA

NORTH

fiscal year, up

1961

seems

likely.

furniture and equipment
with
disposable
or
expendable
products accounting for approxi¬
mately 50% of sales. In an effort
to
reduce
spiraling labor costs,
hospitals
have
been
increasing
their use of disposable products

plies,

this

and

1959 and

rival

bands

and

transfusion and

intra¬

Hospital equipment
operating tables, steri¬

sets.

includes

lizers, oxygen equipment, stretch¬
ers

and wheel chairs.

More than 400

independent

sup¬

pliers manufacture, research and

develop the products sold by Will
Ross.

Will

Ross

owns

one

subsidiary
in ' Ozark,
employing 100 people and
producing a full line of garments
for surgeons, nurses and patients.
Other
textile
products
include
sheets, towels and bedding. Pro¬
duction facilities of this subsidiary

give

food and

friendship

were

with every
to

$1 package

the world's

you

send

hungry thru the

CARE Food Crusade, New

York

last year.

increased 40%

over

sanitariums,

nursing

homes,

clinics, industrial infirmaries and
stations.

first-aid

with

provided

Customers

prompt

are

(This
a

under

factors

babies

million

times

in¬

the

are

SUGAR

energy

Raw

com¬

Refined

—

Liquid

—

Exports—Imports—Futures

72%?

proximately
tion

covered

medical

re¬

of equal

battery

Need Hard to Find
p.u

Yardney's batteries have helped
launch Pioneer V, Tiros
I and,
more

popula¬
form of

writing,

the

Vanguard

Program

in both satellite and launch stages.
The

Atlas

Polaris, Minute Man, Titan,
and explorer Programs are

YOU WILL FIND THEM

Ross

continuing

for

outlook

the

Will

the

But Yardney

the

Inc.
,

the

\
.

Member National Association

Securities Dealers
"

.«
•

>■

Yardney Electric Corp.

*■

the

whose

broker

ment

comes

tastes

run

romantic

upon a

companies
science stock which

has almost all

WPPSZs

-the character-

ital

set has given

major cap¬
gains. A

inception,
s

t i

its
g

(although it
the

went to

Alfred

Lerner

with

large

top-

drawer staff of scientists and

he construed

offer to buy,

any

offer

security referred

en¬

which has

company

.11

Yardney

monthly prices
securities

listed

Over
•

states

the

tions.

find" ;

quota-

Counter

'•

•; -•

Write,

is
be

WILLIAM
h

-i

call:

DANA

25 Park Place

CO.

■

New York 7, N. Y.

believes

that

"hard

those

substan¬

and
communications
completion and mav

agement

REctor

2-9570

important break-through in
fuel -cell
field which -could,

dramatic

impact

all,

areas

conserv-

sell,

herein.)

fill

which

Over-the-Counter

any

can

temporary gap in
military expenditures.
;
The development of these suc¬
cessful
compact
power
sources
and its break-through in the field
of

public for

gineers.

well

the market in six months. Man¬

than

condition

financing),

eral

strong finan¬

never

will

publication

the

of this new en¬
ergy source. Even if the defense
budget shrinks
(which we can
hardly believe under the current
state of affairs) Yardney has sev¬

pre-

$4)

present concepts

earn¬

since

nearing

have

has

steady
growth in

ings

mepts

the

shown

sales and

all

* Its development of a sealed bat¬
tery cell which is used in instru- '

situation

which

most

area

Yardney has developed what may

istics making
for

bound
you

tial order in this area.

great while an invest¬

rhis

give

ola, who is currently offering this

Once in

is beginning a

significant current
application has come in
of portable TV receivers
which use Yardney rechargeable
silver-cadmium batteries. Motor¬
The

year)
—

civilian

;

New York City

now

per

(Single Copy

market.1

commercial

A. M. Lerner & Co.,

(Only $45

concerted effort to break into the

Market.

ALFRED M. LERNER

Record

applications.

commercial

many

term.
The stock is
Over-the-Counter

Bank & Quotation

high price of these advance type
batteries has limited their use in

for

attractive

most

appears

longer

traded

relatively

The

contractors.

ment

growth of earnings without cycli¬
swings and fluctuations, Will

Ross

">fb

QUOTATIONS?

is other areas where Yardney played
selling at $52 a share or 25 times an important part. The Silvercel
estimated
earnings.
With
only was. used as a power supply in
283,616 shares outstanding, a stock launching all three stages of the
split
appears
likely.
American Echo Communications satellite.
Hospital Supply is selling at 38
•\ Because of the accelerated mis¬
times estimated earnings, and has
sile and defense program a major¬
been outperformed by Will Ross
ity of the Yardney business con¬
in growth in earnings per share
tinues to be supplied by the United
during the last six years. In view States Government and Govern¬
At

,'<r

a*;

recently, Tiros II, and were

used

1 Ap¬

our

much ampere-hours as a

lite program.

prepayment insurance.

this

DIgby 4-2727

which

much about

volume, while its "Silvercel" has
had amazing success in our satel¬

the

some

batteries

nickel-cadmium

ar¬

insured►

better

and

service management team that is

circumstances

solicitation of

the

in cently. The Yardney "Silcad" will.
provide close to two-and-a-half

million

$230

$290 million in 1960.

times

have heard

care

cial

4,000 including hospitals,

six

YORK 5, N. Y.

NEW

parable size and weight.

decade, the current shortage

cated

Will Ross active accounts num¬
ber

S TR EET

W A L L

9 9;

es¬

are

all other known batteries of

hospital facilities as the
population becomes better edu¬

Ala.,

You

five

manu¬

facturing

LAMB0RN & CO., Inc.

power

outyer-space while providing from

hospital beds^and the increased

use

include

items

Expendable

venous

cost

Other

to grow.

hypodermic syringes and needles,
surgical gloves, numerous paper
specialities, enemas, identification

batteries

42 nickel-cadmium

trend

medical

liberalize

which

aid

continue

should

trend

the

pecially designed for the rigors of

cal

Will Ross markets hospital sup¬

VIRGINIA

growing

(4) The
states

(5)

California market.

MUNICIPAL BONDS

pected

acquisition of the
creasing population with the
Surgical Company, lo¬

Ross their first West

solicitation for

silver-cadmium

Not only are Yardney batteries
construction is ex¬ superior to the orthodox lead-acid
from union
and church or nickel-iron batteries, but have
and
fraternal organiza-*- also shown superiority in respect
to size, power and weight to the

groups

August

Shipman

receivers

tional hospital

year

are

top $16 million, up
059
in
1960
and $11,998,528
the

The Nomura Securities Co., Ltd.

ending
expected to
from $13,967,-

fiscal

1961,

31,

effect last October pro?

Hill-Burton Act will
appropriate $210 million each year
till June, 1964 to assist communi¬
ties to build new hospitals. Addi¬

tions.

Sales for the
March

able

The

(3)

branch offices

to our

lites, missiles and rockets. Yardney's
patented
silver-zinc
and

....

meaical aid
for, elderly
persons at a conservative cost of
$202 million the first year and up

during the past six years is
Ross, Inc., Milwaukee, Wis.

Opportunities Unlimted

Se¬

viding

John Arnold McLeod

Direct wires

supply for America's earth satel¬

went into

16%

appears

which

Federal

The

(2)

per

NY 1-1557

La. * Birmingham, Ala
Mobile, Ala.

Yardney
Electric Corporation
to have these qualities
while operating in a field whose
market potential is limited only
by man's imagination.* The com¬
pany
provides
compact
power
ranging from such things as port?

York 6, N. Y.

New Orleans,

growth.

law

Exchange,

Stock Exchange

HAnover 2-0700

•

growth

Members New York Stock

ative yet flexible enough to meet

million

has

earnings

System

Wire

company

annual rate

Social

under

Steiner, Rouse & Co

the exacting demands of dynamic

new

oldsters

for

Lerner

19 Rector St., New

Members American

supply

hospital

Bought—Sold—Quoted

Alfred

cost of $700
the first year and up.

demonstrated

Teletype NY 1-40
•

Private

curity

sup¬

which

BOSTON

Nationwide

aid

ply

120 Broadway, New York 5
WOrth 4-2300

ing national

surgical

Established 1920
Associate

the

Federal Adminis¬
tration favoring increased medical
The

(1)

outstand¬

The

for

industry including:

Lerner

—

Co., Inc., New York City. (Page
2)
" : '
•:

long-term

attractive

the

outlook

promising.
..

bullish factors contrib¬

Several
ute

hospi¬

dustry

Corporation

is in sound finan¬
growth

internally with¬
With the new Federal Adminis¬
out dilution of per share earnings.
tration favoring increased medical
Working capital amounts to $2,aid
for
sixteen
million senior
700,000 and the current ratio is
citizens and enhanced by normal
2.8 to 1. Long-term debt amounts
growth fac¬
to only $113,000.
tors, the longterm
outlook

New York Hanseatic

Yardney Electric Corp.

financed

Fore

Loyalty Group,
New York City. (Page 2)

and future

condition

cial

Department,

Investment

America

Milwaukee.

Loyalty Group, New York City
Will Ross, Inc.

Leod,

of seven ware¬
largest
located
in

use

the

houses,

can

department

maximum

America Fore

Investment Department,

more mar¬

experience

long

trading

wire

private

you

Louisiana Securities

favoring a particular security.

through the

JOHN A. McLEOD

provides
kets, faster.

Alabama &

Participants and

Their Selections

Will Ross, Inc.—John Arnold Mc¬

Call "HANSEATIC"
Our

Thursday, December 29, 1960

advisory field from all sections of the country

participate and give their reasons for

tem

This Week's
Forum

which, each week, a different group of experts

in the investment and

In 1961

energy

enough for

generation
any

would

Quotation Services
for 47 Years

normal company,
besides these

but not Yardney. For

products, Yardney has had impres¬
sive

results

with

its

subsidiary. This subsidiary, called
Yardney Chemical, Inc.) has spent'
over

10 years of

intensive labora-r:

Continued

National Quotation Bursal

chemical

on page

Incorporated
,.i

;

Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
SAN

FRANCISCO

192

Volume

Number 6016

The Commercial and Financial Chronicle

;

(2667)

CONTENTS

Investing for Fire and

S'ippt>
By H. Philip Chapman, Jr.,1:1 Investment Vice-President,
Springfield-Monarch Insurance Companies

Articles and News

page

Jieto fear

-Cover

GTo <^ne

—3

nb &U

What's in Store for the Economy and the Insurance
Mr.

Chapman delineates investment considerations governing stock

Industry?—Eugene

fire, stock casualty and multiple line companies before turning to a
discussion of investment
ment he

does

on mutual companies' investment
policies.
keeping equities for the long-pull with emphasis
placed on quality and growth. Discerned are the virtues of mu¬

•—H.

nicipals, revenue bonds and the lack of appeal of corporate obliga¬
tions because of the tax angle. A strong appeal is made for the
convertible

Investing fpr Fire and Casualty Companies

.•

The author favors

issue

Thore

policies. Because of differences in tax treat¬

touch

not

Philip Chapman, Jr.j_.__——

————,

Electric Bond and Share Company—Ira U.

preferreds and even for straight sinking fund

The

Mr. Chapman outlines his general and specific approach
investment research and analysis, and he lists the common stock

Economy's and

Cobleigh.

Steel's Improving Cost Trend "

preferreds.
to

diversification of 26 fire and

casualty

—Roger

Blough———-—7

CARY CHEMICAL

groups.

Forecasting Business and Financial Events for 1961
This discussion of the

earned premium reserves is much
higher than for their counterpart
—fire operations.

subject, In¬

vesting for Fire and Casualty In¬
surance Companies will generally
follow
these
two
rather
broad

Historically,

of business

the industry—
the

tors

that

e r m

and

fac¬
de-

(b)

cific

it,

n e

spe¬

invest¬

ment

policies

such

—

common

Chapman, Jr.

phy df the industry.'

should

allied

different

varying

| f

lines

This

Thus, when

oline

pointed

segment

protection

the

liabilities.

covered

these

see

types

operation

out.

balances

pretty

whether

nantly
or

about
asset

are

This

truism
is predomi¬

from

the

Broadway, Now York 5

^JQIgby 4-4970

Best

referred

—

r--

Businessman's Bookshelf

.___

■

Coming Events in the Investment Field-—.—

Dealer-Broker

Investment

Recommendations——

Einzig: "Business Prospects in 1961 for the Free World"

fire

the

1959

protective

ratio

but

From Washington Ahead of the News—Carlisle

•

Mutual

Co.

Funds

—_____

——

—

Bargeron

Indications of Current Business Activity——j

.—

—

New Year

—

ratio

News About Banks and Bankers—

above.

Observations—A.

the

Wilfred

May—

.___,

.___

—

——___

87.4%

was

Our Reporter on

reasons,

of clarity.

Public

Singer, Bean

Securities—_——————__________ 14

Utility

Securities Now in

Registration

mackie,

INC.

Springfield
Companies this ratio
at

:l*

the

end

Prospective

Offerings——

Security

1959.

Salesman's Corner——______

Security

Our theory in this connection is
simply that our capital structure

of fire

Governments——,*—————

the

case

Insurance

some

and

only for

considerations

from

-Cover

(Editorial)—

Bank and Insurance Stocks—^—

sense

divergence of
importance of
stating the de-sirability' of a 100%-coverage, I
have oversimplified; the problem,
this

good
place to differentiate between the
investment

end

J.F.Reilly&Co.,Inc.

multiple

oranges

tions, there is
feeling as to

this would be

Perhaps

in most other financial considera¬

both.

As We See It

of
102.7%; i.e., "money good"
protection of insurance lia¬

bilities

for

casualty, and surety,

fire,

CORP.

Public Relations Program

Regular Features

insurance—in

derived

—revealed

We like

dollar

the

obtained

These

bonds.

company

mixture

and

much

—M. K. Mellott

the

posi¬
tion of 748 stock fire and casualty
companies—according to figures

dollar, or close to it, with "money
good" assets. Such assets would
include cash, receivables, i.e., pre¬
mium

PERMACHEM

end of the business.

loss reserves and

reserve,

miscellaneous liabilities.
to

fairly impor¬

degrees—in

influences

oversim¬
people in the

latter comprise our unearned pre¬
mium

Mandell—_—

BROADCASTING

combine these two

"combining

different ways.

insurance

our

Planning—Melvin

Industrial

Whys and Wherefores of

tant consideration to bear in mind.

of course,
many

First

capital funds than have the fire

and

industry express the above factors
(1)

Today's

METROPOLITAN

Capital Must Be Properly Utilized

Mills, Jr

dif¬

with apples"
(1) Our insurance liabilities and —financially. But, with this merg¬
ing-tendency of the industry as
their asset protection.
a
whole, it seems best to treat
(2) Our capital funds and their
the two types as one entity. From
investment.
time to time it may be necessary
(3) The proportionate relation¬
to point out the specific influence
ship of our liabilities and our cap¬
of casualty operations as against
ital accounts.

in somewhat

—A. L.

place casualty op¬
historically have written
premium volume per dollar

business.-

A—Investment Philosophy

are,

Banks' Working

first

the

H. P.

tionships that pretty much shape
the over-all investment philoso¬

These

erations

three

plifications;

I960—Felipe Herrera——

two other financial

ferences

fairly simple fi¬
considerations and rela¬

nancial

stock

are

CHEMICAL

■

•

One

policy, bond
policy and
preferred
stock policy.
To my mind
there

and allied lines

DYNATHERM

FOTOCHROME INC.

Latin America in

the other;

i.e., fire
casualty-surety.
Since
multiple
line
insurance
came into vogue, it is now the rule
for most companies—or groups of
companies — to write all types,
excepting, of course, life insure,
ance.
'
'
:

philosophy; ..of
and

—Hon. Emanuel Celler

of years ago, most individual
companies either wrote one class

tment

e s

ber

'over-all
n

Captive Sales Financing—A Threat to Free Enterprise

the .advent

of multiple line insurance a num¬

topics: (a) the
i

before

•V —Roger W-. Babson

companies on the one hand and
—the relationship of capital funds
casualty companies on the other.
to liabilities—is more conserva¬
casualty type opera¬
tive than the industry as a whole
tions are obviously of a much dif¬

The Market.

and

19,

______

You-rBy Wallace Streete—, 16

The risks of

ferent

panies
lines.
much

loss

than

nature

com¬

for

writing fire and allied
one. thing, claims being
slower of settlement, the

vided

riod.

This

means

loss

not

degree of

The Security I Like

those

assets

Best—,—J_.I_r._r_Tr_,_?rn___

call

pro¬

have

specialized in

Tax-Exempt Bond Market—Donald Mackey—

Washington and You

Continued

un¬

page

rman
Futter

PREFERRED STOCKS

FINANCIAL

Reentered

CHRONICLE

ary

Reg. U. 8. Patent Office

Founded

1868

DANA

Park Place,

WILLIAM

Members New York Stock Exchange

Albany

Boston

Every

Nashville

Newark

vertising

TELETYPE NY 1-5
Chicago

Schenectady

plete

Treasurer

issue

—

market

Other-Office*.

Chicago

111.

135

office

New

quotation

Salle

Canada,

$68.00
per

year;

per

Bank

St.,

(Telephone STate 2-0613),

and

$45.00 per

Quotation

year.

rate

fnreicn

Record

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39
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Note—On account of

the

exchange,

subscrinti^"«

»»id

W" V. FRANKEL & 60.

year.

Other Publications

the

post

Countries, $72.00

1960

bank clearings,

South

Dominion
Other

Editor

Thursday (general news and ad¬
issue) and every Monday (com-

statistical

the

Subscription Rates

SEIBERT, President
SEIBERT,

Subscriptions in the United States, U. S.
Possessions, Territories and Members of
Pan-American Union, $65.00 per year; in

9576

MORRIS SEY,

records,, corporation news,
state and city news, etc.)

Glens Falls

Worcester1

1942,

Company

second-class matter Febru¬

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

N. Y.

New York 7,

Thursday, December 29,

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

DANA

GEORGE

25,

Publishers

COMPANY,

REctor 2-9570 to
CLAUDE

Corp.

The COMMERCIAL and

Spencer Trask & Co.

.—

25 BROAD

Tenney Corp.

pro¬

WILLIAM

■A

Gllckman Corp.

: 2

The State of Trade and Industry

Published Twice Weekly

For many years we

____^

much of the balance of our assets

rela¬

that' the

reserves

same

capital funds. By and
large we feel that after the pro¬
tection of
our
liabilities pretty

much higher.. In
addition the policy term of most
casualty lines is for a shorter pe¬
tionship

liabilities

(2) Of second importance is the
investment

for casualty business

ordinarily

are

our

quite the

tection.

For

reserves

that

those of

extra.)

fluctuations

remittances

for

advertisements

riiu8t be made in New York funds.

BROADWAY, NEW YORK 6

Monthly
WHitehall 3-6633

Teletype NY

1-4Q40 &

1-3540

The Commercial and Financial Chronicle

(2668)

offset at

Conversely,

suppose

The State of

Retail

•

■

Trade
Price

Auto

TRADE and INDUSTRY

Output

Food

Tak¬

ing profits in that year certainly
results in tax economy, even if the
same
securities are immediately

SOPHISTICATED TAXPAYER

Production

Carloadings

fellow

is about to expire.

carryover

THE

Steel

Electric

other time.

some

has taken losses and the fifth year

WILFRED MAY

BY A.

Thursday, December 29, 1960

whether there will be such an

OBSERVATIONS...

Production

Business

Index

Failures

Commodity Price Index

bought back.
In

column

our

Dec.

the widespread pro¬

pointed out

to confuse tax postpone¬
Instances
this cited by us include (1)
so-called "tax-free" dividends

clivity
of

the

paid by enterprises with "a Loss
Carryover,"
that is, companies
or

(2)
new

Maneuvering

out in Ob¬
servations of December
15, the
over
emphasis on tax - dictated
further pointed

maneuvers.

in the current year,

loss

Tax-Dictated
We

accumulated defi¬

Strongly,

which have an
cit

I mention these things merely
pooled
portfolio
figure in
supplement of the points you
will be materially disadvantaged.
have so wisely made.

Fund's

with tax savings.

ment

of the

cost basis than the average

purchaser

the

currently

his

turning

pays

sjg

the

are

wherein

behavior,

market's

the

stocks.

selling,

induced

City
if!

We
are
not unmindful of the
unwittingly, sub¬
contention of the possible benefits of acceleration

end-ofheld the-year reports and forecasts of
by

New York

"tax-depressed" issues are pointed
out as providing bargains. Where
gories (2) and (3) above, consti¬
tute a return of capital.
Lower¬ such declines provide good value
for the prospective buyer, the taxing the recipient's cost basis, the
resulting gap between the old and depreciated price received by the
correspondingly dis¬
the new cost price adds to the ul¬ seller must
Non-taxable dividends, in cate¬

capital gains tax, with the advantage him investment-wise.
In our article of last week we
25% maximum rate, effective un¬

the

taxpayer in other areas, as

in the

making of charitable dona¬

decide that your
overall plan *is to defer income
until next year because you ex¬
tions.

you

pect

within

come

bracket-

then,

and

for

1960,

expenses

lower

speed

contributions

should be made this year
the

to effect

greatest amount of deductions.

timate

til death.
In

the

case

of the new mutual

funds, to which the investor sub¬
scribes

exchanging

his own
so-called

the

connection

this

glad

to publish the following commu¬
imposed at the time of the
nication
from
a
tax
authority
But it should be real¬
some
constructive ad¬
ized that a more disadvantageous, showing
vantages in accelerating security
stepped-up capital gains tax lia¬
transactions.,
bility is imposed after the time
of the exchange. The investors in DEAR MR. MAY:
the newly-established Fund, as in

tax is

exchange.

the

case

all

investment

and a continued
expenditures for
services and non-durable goods.

observations

Your

com¬
tax

thinking"

"wishful

interest

1961

This capital
comes

gains tax "bill" be¬
by the investor

payable
the

whenever

declares

Fund

management
distribution from the

1961

elected

were

follows

for the year

same

This

Fund

tax

burden

young

differs

—if

til

control whatever over the time of

are

payer

by the investor before the trans¬
in two ways. He now has no

with,
than if

parted

April 15, are more

the losses

and

fer

bird-in-

psychology is real and im¬
If losses are not taken
the face of established profits,

been borne

from that which had

taken.

That is imme¬

It gives the tax¬

dollars to work with

which to draw income un¬

the

Day

arrives

of Judgment

ever.

There

management's sales of port¬
folio stocks, which may not co¬
incide with his over-all tax prob¬

year

are

also

some

technical

profits,

lems.

the

Furthermore, according to
Internal

Revenue

Service's

considerations.
deductible

Security losses are

from

only

security

except for the $1,000 a
(Construe the word
"securities" to mean "capital.") To
take

ruling, irrespective of the individ¬

York is

portant.

dollars

tax

the

about

slightly higher.

production

auto

Passenger

ing

dicate
&

profits in one year and pay
on

Frederick S. Wonham

ther

Output

will

1961

elected

the

for

694,000

•

450,000 in 1960.

decline

appears

1959 to
Some fur¬
likely in

V '•Vi'C.
Present low rate of steel opera¬

tions
some

will

probably

continue

for

Out¬

time and then turn up.

put for 1961 should at least equal
the

1960

"total

100

DeNunzio, manager, million tons.
Syndicate - Department,
Kidder,
The
number
of
new
private
Peabody & Co.; Mr. Banker, In¬ 'dwelling units started will be ap¬
stitutional Sales Department,
R.
proximately 1,250,000 for 1960. A
W.
Pressprich" & Co.; and Mr. slight rise is in prospect for 1961.
Boesel, Jr., manager, Syndicate
Total personal income for 1960
Department, Hayden, Stone & Co. will be about $405 billion, as
Mr.

Election

tee chairmen

follows:

executive

were

Charles

Wood Struthers &

commit¬

also announced

H. Jones, Jr.,

Co.; Morgan H.

Jr., White, Weld & Co.;
Peter P.
Wiley, Merrill Lynch,
Pierce, Fenner & Smith Inc.; G.
Bruce Leib, Baker, Weeks & Co.;
will
favor
some
investors over
J. Scott Crabtree, Equitable Secu¬
perfectly natural therefore to play
others.
The investors whose de¬ it safe
rities Corp. and Andrew M. Blum,
by taking losses to kill off
posited securities have a higher profits, rather than to speculate Van Alstyne, Noel & Co.
Harris,

against $383 billion for 1959. The
1961

figure will probably be close
$415 billion.

Preliminary figures compiled

ago.

Sales

retail

all

stores

will

advices

graphic

week

the

for

24, clearings for all cities of
the United States for which it is

Dec.

weekly clear¬

obtain

possible to

ings will be 22.8% above those of
the corresponding week last year.
Our

preliminary

leading

Dec'. 24—

York

I960

■ •

1,334,799

Philadelphia

1,175,000

-1,131,841
1,032,000

U*__:y+ 902,542-.-,

111.

—

Clarence

& Co., 135 South
Street.
Mr. Troup was

LaSalle

formerly

of the stock
departments for

manager

commodity

and

the Chicago

office of Reynolds &
prior thereto conducted

Co.

Correspondents inprincipal cities

throughout the United States and Canqda

UNDERWRITERS AND DISTRIBUTORS

and

his

own

investment

business

Steelmakers

are

Degginger and Gerald
both formerly with
J. R. Williston & Beane, have also

the

year's r lowest

metalworking
reported..,

less,,, the
Steel

Other favorable signs:
.

(1) D

e m a n

Corp.

quarter for

some

producers.

ments.

•

••

(3) Canmakers have started is¬
suing January and February re¬
They will probably be larger by
2 or 3%
in 1961, with gains in quirements for tin plate.
The scrap market is also im¬
soft goods providing the main up¬
proving, the metalworking weekly
ward push.
Brokers are seeking to
Business outlays for new plant reported.

around

and

$220 billion for 1960.

equipment

rose

from

Continued

$32.5

Canadian Delhi Oil Ltd.

Republic Natural Gas Co.
Northwest Production

Corp.

Southwest Gas

Producing Co.

Unlisted Trading Department

Securities Corp.

Dominick

ness

Ronwin

Forest Avenue.

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

NEW YORK

Guttve,

Shiffman.
Irwin

Treasurer.
o

Securities,

Officers

are

645
Ron-

President; Ronald I.
Vice

President,

Scarano,

and

Secretary-

country

(2) Service centers Jhave nearly
completed their inventory adjust¬

Y.—Ronwin

has been formed
to continue the investment busi¬

goods is improving. December is
the
best; month since 'the first

& Co.

Ronwin Now

this

magazine

d for oil

joined the staff of Harris, Upham

STATEN ISLAND, N.

level

Bookings for next month are 5
10% better than December's.

Tomas,

OF INVESTMENT SECURITIES

holiday week—40% of capacity or

Herbert

receiving

flurry of orders even though mill
operations are expected to drop

Chicago.
P.

Holiday

Cut Into Output This Week

Harris, Upham
1870

+17.9
+13.9

699,364 +29.1

Steel Orders Improve but
To

■

1959
> Sjo
$18,541,802 $14,910,959 +35.2

Chicago
Boston

•

r—OOO's Omitted—K vi+

Week' End.

New

the

for

centers

money

week follows:

Harris, Upham
CHICAGO,

stand

totals

$32,140,678,909
against
$26,163,274,289 for the same week in 1959.
Our comparative summary for the

C. G. Troup With

Troup has become associated with

tele¬

from the chief
indicate that
ended
Saturday,

cities of the country,

figure

clearings last week showed
with a year

increase compared

by the Chronicle, based upon

196E

firms in New

Department, G. H. Walker

Co.;

Bank
an

few used cars) declined from

peak

around

1961 hold the following posts:
Wonham, manager, Syn¬

Mr.

1959

probably drop by around 10%.
Passenger auto imports (includ¬

Officers

York.
year

6.7 million cars,

the

above

million.-

6.0

men

employed

12%

investment banking

loss.

them, and to take losses
ual exchanger's own cost basis, in a later year and not be able to
make use of them because there
all the investors pool their unreal¬
are no profits
around, results in
ized
capital
appreciation.
This
a net increase in the tax bill.
It is
a

index

The 1961 aver¬

1960.

1960 will be sopie

the

Reserve

probably

will

age

very

or¬

Federal

physical volume of industrial
production will average about 103

diate and visible.

it has

probabilities

given below:

are

the

Sec-

Banker,

esti¬

billion

1960.

additional

1961

The

D. DeNunzio, VicePresident;
Vincent

for

Some

President;
Ralph

$503

approximately
mated

for

ganization

tors to be considered: The

profit.

gains

$510 to $515 billion, or a gain
of about 2%
over
the figure of

Frederick S.

has been announced:

hand

comes

capital

likely to be in the range

realized
during the year, by selling from
its portfolio .securities at a net

net

national product in

gross

retary and
panies which have been in busi¬
much.
Richard E.
ness during the record Bull Mar¬
You are
completely sound in Boesel, Jr.':
ket of the Fifties,, are,
in part,
Treasurer.
*V
buying the customary tax bill on pointing up the difference be¬
tween tax postponement and tax V
The Invest¬
the unrealized appreciation.
ment Associa¬
saving.
of
New
Buying A Tax Bill
Here are some additional fac¬ tion
.........

goods;

consumer

Total

Elects Officers
ciation of New York for the year

are

estimated

$35.7

durable

Officers of The Investment Asso¬
Our Mail-Box

From

"Tax Free"

Bulletin"

"Business

...

rise in

N. Y. Inv. Assn.

within the current calendar year.

stocks, a
exchange taking place.
This means that no capital gains

miscellaneous

"filed a demurrer"
importance given to
acceleration of tax loss sales

specifically
against the

1959

billion

billion in 1960.
A decline
summarizes its analysis of busi¬ to around $34 billion is in prospect
ness trends in the year, ahead,
:
Z
in for.1961. ;
The margin between merchan¬
part, as follows:
The
current
recession
is un¬ dise
exports
and
imports
has
likely to be drastic and prolonged, widened considerably this year.
although it will probably con¬ Some further gain in exports, per¬
tinue for some time.
Prospects haps 5 to 10%, is expected in
for 1961 include a rise in spend¬ 1961.
Imports! may
increase
ing by the Federal Government slightly.
V
and also by state and local gov¬
The consumer price index was
ernments; some further liquida¬ 127.3 in October, 1960, and will
tion of business inventories, fol¬
average about 126.5 for the year
lowed by a change to accumula¬ 1960.
The
1961
average
will
tion; not much change in private probably be higher by around 1
residential construction, with any to iy2%.
,
gain being small; a moderate drop
in business capital outlays; some
Bank Clearings Rise 22.8% for
decline in consumer spending for
Dec. 24 Week

Co.'s

•

Certified Public Accountants

„

stock dividends, and (3) the stantiating our
Mutual
Funds, for whose investment disadvantages to tax-

J. S. Seidman.
Seidman & Seidman

current issue of the Cleveland

Ti^st

WERTHEIM & CO.
Members

New

York Stock Exchange

NEW

YORK

page

Volume

192

Number

6016

The Commercial and Financial Chronicle

(2669)
Power

Electric Bond and Share Co,
H

revised

look

this

drop from

renowned

and

closed-end

caused

17%

its

at the

1958

stock. First EBS

stock

discount.

I960

low

year-

ondly,

this

rived

Cuban

properties

value at all on this sizable Cuban

trust.

property which

and

day, and what attraction does its
common
stock
offer to
holders,
present and perspective? We'll at¬
tempt to answer that double ques¬

companies
hopes. The

transition

plenty of "transiting" in the past
30 years.
Bellwether of the util¬
ity
holding
in
the
companies
Roaring 20s, its stock sold at 189
in

1929.

Electric Bond

Share,

and

tion

two

Holdings

net

nent

1960

Electric

Power

Light, American Power and
Light, American & Foreign Pow¬

have

Electric

Bond

and

Share Co.

gins and high quotations, was the
corporate shepherd of such emi¬
affiliates

Electric

Bond

tangible
of

$29.07

and

assets

had

Dec.

16,

equal

$152,647,902

per

the

er, United Gas, and had a benign
relationship with American Gas
&
Electric
Co.,
now
American

Electric

Power

seasoned

ing

of the most distinguished

one

and

compris¬

and successful groups of operating
electric companies in America to¬

day.
•

April,

1938,

common

stocks

some

works out to 7/10ths of

and

Foreign

common

stock¬

holders;
(4)
divesting itself of
ownership in American operating
pubilc utility company securities,
and (5) retiring its own preferred
shares.

All

this

involved

over

share of

Power for each share

EBS.

This major holding repre¬
senting a market value of around
$30 million, has quite a history.

During the
be

future

1920's there

appeared
profitable
employment
of
capital to build
and

fantastically

the

American

$1 billion in security values. The
final
step necessary to * exempt

America. Electric Bond and Share

Electric Bond and Share from the

formed

Holding'

Company- Act,

and

qualify the company as a regis¬
investment trust was-the

tered

sale

Dec.

20,?U960

sharesr of' United
This
Gas
so

of -140,498

Gas

common.

liquidation reduced United
common
holdings to 500,000,

that

today

has

investor

Electric

nothing

status

with

and

Bond
than

United

Gas

Corp., being po longer represented
on its board, and
enjoined against

rendering services to United Gas
so
long as it is a shareholder
therein. So, from being the most
eminent
electric
utility holding
company
in the world, Electric
Bond and Share expects in Jan¬
uary to complete its transition into

electric utilities in South

manage

Foreign Power and en¬
tered this exciting field in a big
enthusiastic way. In due course,
this
international
public utility
holding company acquired electric
utilities

America

there
with

and

First it

was

South

But

problems

these

companies.

foreign exchange, and
rate
and
regulatory

climates in

the

1930s.

the

Shanghai property
over
first by Japanese
by the Red Chinese. It
ten off

Shanghai.

weighty
of

unfriendly
Latin

arose

most

countries

Then

taken
and later
was writ¬

was

entirely in 1941.

came

Cuba,

the bearded ape

Castro.

played
havoc with Foriegn Power's big¬
gest
property
(accounting
for
runs

closed-end investment company,
and it is expected application will

Electric

shortly be made to list its common

ranguer

stock

the New York Stock Ex¬

change.
all

After

these

vast

changes

First

the

hirsute

bring

investment

trust

stockholders, and

end from

distributed

divid¬

net

business

reduction in Foreign

become

must be reinvested in other

With

businesses

Electric

Bond

(non-

Mexico.

and

Share's

managerial brains this should
insurmountable

pre¬

however.

ventures

there

fact

business

far

prove

profitable, and less vulner¬

will

Foreign
sold

Power
Nov.

properties

officially
The only

were

28,

1958.
that the price
be determined

hitch

was

open,

Chief

Justice

left

was

the
Argentine

the

Supreme Court. If this solon sets
the figure at $62 million or more,
then

the

must

company

proceeds,

the

put

plus

25%
additional,
into a new 300,00 kw generating
station.
If the approved amount
is below $62 million then the pro¬
ceeds

(to be payable over a 15
year period)
must be reinvested
in Argentine non-utility ventures.
This is sort of an Argentine rou¬
lette

game,
the principal
gain
which might come from in¬

from

terest

$62

million

per

million—around

6%%.In

annum

with

the

program

decision!

ther,

reasonably assured, and
great advantage of com¬
plete exemption from Federal In¬
has

the

Tax for

Usually
provides

a
a

some

years

American

insulation against inflation.
With
Electric Bond and Share common
the yield of 4.8%
return

of 9.6%

and

eer,

is equal to a tax
a 50%
bracketif you're

24%

in the

84% tax group.
And, of course,
Electric Bond and Share, with its
fine

portfolio
earning power

and

diversity

may well deliver,
future, larger dividends,
and significant capital gains.

the

leader.

With

market

present

its

highly

regarded management, a thorough
discounting of its Latin American

difficulties, and operattion in an
entirely
new
corporate
orbit,
Electric

Bond

and

John

ipay be

James
the

will

Minot

direction

overall

By Hugh Long Co.
ELIZABETH, N. J. — Bruce Watkins has been apopinted a regional
representative for Hugh W. Long
&

Co., Inc. Mr. Watkins will
the

northern
make

his

firm's

Jesup

Elizabeth

office, Westmin¬
of Bab-

ster at Parker.

A graduate

Institute,

Wellesley

son.

experience ak
tive

ness

and

was

ager

for

the

retail

account

announce

busi¬

formerly sales

man¬

Scott-Paine

that

ISLEIB
our

firm

Lamont
Exchanges

BROADWAY, NEW YORK 4, N. Y.

500,000 annually.
Chemical

We
the

are

pleased to

growing engineering and con¬
firm specializing in the
building of chemical and petro¬
chemical
plants.
During 1960 it
has delivered quarterly dividends
of $187,500 to EBS.

formation of

Most recent addition to the

gineering

Newman,
& CO., INC.

Irwin Miller,
President

Telephone: WHitchall 4-4700

(At Joseph Walker &

Sons)

WALTER L. FILKINS

ERNEST LIENHARD

Share.

Finally, EBS owns a half inter¬
(United Gas Corp. owns the

est

WILL

BE ADMITTED TO

OUR FIRM

haljP in Escambia Chemical
AS

GENERAL PARTNERS

30 Broad Street

New York 4, N. Y.

Constructors,

Corp., a ^petrochemical enterprise
Pensacola, Fla., engaged in produring ammonia and vinyl resins

Exchange

TO ANNOUNCE THAT

MILTON PAULEY

line

Inc., purchased in September, 1960
for
73,000 shares of Bond and

other

Members

Kidde

WE ARE PLEASED

en¬

construction

and

Walter

was

ZlMMERMANN

■

struction

Miller,

New York Stock

Construction
Corp.,
wholly-owned subsidiary

another

announce

Charles M. Newman,
Vice

President—Secretary

Member New York Stock Exchange

George 0. Zimmermann,
Vice President—Treasurer

using

natural

United

Gas),

(supplied

gas

An ..income

Escambia

Chemical

Having thus at
what

scribed
•

some

just

raw

from
com¬

Troster, Singer & Co.

this year.

menced

flow,

length de¬

some

Electric
\

1%1

its principal

material.

ON JANUARY 1,

Bond
,

and

conclusions

rent attractiveness

of its

the

Members New York Security Dealers Association

today, it's time to draw
cur¬

common

execu¬

securities

Corp., Stamford, Conn.

Members New York and American Stock
26

Hills,

Mass., he<has had several years'

January 1,1961

rep¬

Long
Company
in
Jersey and will
headquarters
in
the

New

General Partner,

effective

under¬

Watkins Named

will be admitted to
as

continue

writing.

pleased to

are

John

rdson,
Jr.; also a partner, will be in
charge of the buying department.

HORACE F.

Companies

parent company at the rate of $1,-

the

since

Richa

Construction

corporated, outstanding in the de¬
sign and .construction of electric
generating plants, and boasting
one
of the largest and most re¬
spected
management
consulting
organizations
in
the
world.
It
presently pays dividends to the

1955.

Brick

may

there, as our government
has virtually promised to do.
and

Brick, a
part-

general
n e r

money

Service

syndicate

John

among

countries

department by

resent

In the 1920's EBS was

start pouring in more

the

come.

tax exempt security
fixed return but no

you

dislike of the

suc-

manager

Finally, the $1.20 present div¬
idend

The

soften if

ceeded

can't appeal the- ready once again to achieve broad
Supreme Court is market sponsorship and popular¬
the. top legal cat!
ity in the Surging 60s. A consid¬
Even writing off Cuba entirely,
eration of this equity Tor current
it is possible to calculate the real
purchase would not seem illogical.
values
(assuming
Mexican
and
Argentine payoffs in line with the
above) of Foreign Power at some¬
where around $25 per share. Fur¬
event,

any

Lewis

Mr.

firm

come

the

ef¬

fective Jan.

and Share.

problem,

other

may

firm

the

packaged design, engineering, con¬
struction,
management
and
fi¬
nancing featured by Electric Bond

utility)

fit

lim¬

ited partner in

money
for
the acquisi¬
other attractive companies

tion of

that

Ex¬

change, will

wholly owned Ebasco Services In¬

necessary

Stock

making

earnings. The catch
to this deal is that the $64 million

all net earnings; and then, in 1960,
Castro government expropri¬

security holdings, what does Elec¬

J. Lewis, general
partner
Paine,
Webber,
Jackson
&
Curtis, 25 Broad Street, New York
City, members of the New York

enables

now

Other significant assets of Elec¬
tric Bond and Share include the

tric Bond and Share look like to¬

direction and in

David
in

heretofore

ha-

the

substan¬

tially increase the figure. Thirdly,
the security portfolio is an elite
unrealized profits. Next, the out¬
look for
utility construction in

subsidiaries

in August, 1959, reduced
electric rates by 22%, eliminating

ated the Cuban Electric Co. prop¬
erties completely. These acts made

both in corporate

could

Synd. Dept. for
Paine, Webber

the company to concentrate on the

about 26%• of total assets). Cuban

Co.

conservatively.
Realizations
on
liquidation
of
Mexican, Argentine and possibly

initially $4 million a
year
against only $1,400,000 annually

South

who

most

and dynamic one with substantial

Argentina

panies;

price of 25. Sec¬
book value was ar¬

Latin

politically.

majority (50.3%)
outstanding common and

market

sold for $64 million, 1961 is excellent and Ebasco earn¬
long-term
instalment ings should, expand. Fifthly, the
payout, bearing interest at 6T/2%. clarification of corporate status as

the

able

Brick to Head

Dec.

against

been

Among the other assets,
the
largest single company investment

This represents a

brighter

major
are

Mexican

sent

is in 3,678,385 shares of American
& Foreign Power Company, Inc.

companies to their

other

there

highly
respected
companies
(including 45,000 shares of Ameri¬
can
Tel. and Tel.), selected pri¬
marily for appreciation.

Electric Bond
and Share became subject to the
Holding Company Act and spent
the next 14 years in a huge and
complicated program of: (1) dis¬
solving domestic subholding com¬

(2) paying off their bond
preferred stockholders;
(3)
delivering
shares
in
operating

the

The interest thereon should

5,250,357
shares outstanding.
Of
these assets, $90 million consisted
of net current assets, short-term
investments, and a portfolio of

Co.

About

under

in those frantic., days of low mar¬

and

stages.

value

current

Electric Bond and Share has done

world

$29.07

was

sells at

common

book

6%.
The
Cuban outlook today is bleak and

some day may be
restored, or at least partially com¬
pensated for.

The

Its

Foreign Power common at today's
price of 8Y2
places virtually no

reoriented

investment

ena

equity, offering
tax-exempt dividends, attractive fringe benefits, and a shiny new
status

and

By Dr. Ira U. Cobleigh, Enterprise Economist
A

dividend from

common

50c

74 Trinity Place, New York 6, N. Y.

Marine

The Commercial and Financial Chronicle

(2670)

Although the tone of the
is good, there has been
little apparent business transacted *
In the following
during this period. Even the last
minute tax Swaps have been in $1,000,000 or more
sale.

TAX-EXEMPT BOND MAKKET

This

evidence.

little

be more or less

consider the

new

late in

general way concerning

kets

quite easily
market for
weeks at least. Nonetheless

One may, therefore,
of the securities mar-, predict a receptive

course

for our purposes, the
municipal bond market
in particular. As we seemingly
emerge from what is considered

many

the old and burst into

market's

and,

state and

era

new

though it were esoteric and
bordering on the unknown,
it has become habit to analyze
and resolve. The speculation will
be heightened this year by the
advent of a change in the national
Administration, accompanied by
legislative majorities that may be
unusually impelling.

there

experts who hesi--

are many

straightforward,

tate to adopt this

logical, simplified version of the
near-term

trend

motivation for more than cautious

even

tax-exempt bond investing, Most,
if not all, market factors are subject to extensive change within
relatively brief periods,

Year

Retrospect

J11!.

lurt
Many

to pro-

? J? v?11?111^"

J^^rket might likely, be
P.

writers felt that it flight
go lower during the course of the
year.
The reasons were almost
pat. Business
its

to prosper

was

with

consequent

demands on the
money market. A great number of
state and municipal issues were
destined for marketing in unprecedented
volume
and
the
bond

lead

that
wj-q not long be quieted through
mere money rate manipulations,
...

Also m the balance is the busiPess Prospect, ^ast year Predlc"
J\0r\s went awry. This year may
hkely see a strong business upsur^e that could soon Set under

Pecrs *or

financing of close to record

include

not

does

closely obtain. The bond market

and

up. The

municioal

Commercial

Chronicle's
bond

yield

state

Index

stood at 3.68% On Jan. 1, 1960. As
the year now closes theyield In-

dex

stands at 3.23%. This represents an average market improve-

ment of about 6

points. This Index
involves high grade, average maturity, general obligation bonds,
The

Smith, Barney & Company
Turnpike bond yield Index stood
at

4.31%

1960

last Jan.

the

3.85%.

This

1; on Dec. 22,
yield

average

Stood

represents

rise

close to 8

points.
Foregoing brief examples

Sales

fellef of. New York is exerting
constructive leadership in urging:
thel9?l legislature to authorize
more *ax relief for the state s
commuter railroads. He is also
recommending revision of the fullcr?ialS that .^ve seriously impeded
railroads m recent
years- The continuance and imfrovement of commuter rail service ls an lmPlled contingency;

roads, the unions, the municipalities and the commuters to share
and thoughtfulness. We will
try in an economical approach to savto make no long-term
predictions ing the railroads and the service
but will rather attempt to report they can give. It would seem to
the salient market factors in a us that his straightforward and
weekly continuum that may even bravq approach may bring
generate
longer
term
market about a tremendous public service,
perspective.

Rockefeller's

Situation

Obtains

Now

Today, peering even 30, 60 or
90 days into the
tax-exempt bond
market

future

would

to demand

appear

certainly

might

have

■.,

than

required

a year ago.

seem

The

appear

been

answers

quite pat.

The bond market should improve,
«

•

Business

'■

relatively

dull

unemployment® showing
create.

Money

with

likelihood

abundance.
issue

The

financing

witn

an.

in-

plentiful

seems

proach

appears no

new

greater

ap-

in contrast to the

seems

The

quarter

proposed

billion

plan

dollar

for

Au-

Port

thority merry-go-round isn't quite

the answer. This kind of

r^ale14

Rockefeller's,
raiIroads

goi^g

more-in

might

£or

very

keep

our

half century

comfortable,

sufficient manner.'

During the past
the

extended

there have been
Or

wee$ involving

Christmas

state

holiday,

important hew

municipal issues

for

Bate

New

(State)

Jersey Highway Auth., Gtd—

NeW York (State)....—
Pennsylvania (State)
Vermont (State)

—

New- Housing Auth. (N. Y„ N. Y.)
Los Angeles. Calif.—

Baltimore, Md.__

Cincinnati, Ohio

Street

n a

and

Corp.,

3%%
3%%
3%
3%
3%%
3%%
3%%
3%%
3%%

3%.%

Maturity

Bid

Asked

1978-1980
1980-1982

3.65%
3.25 %

3.50%
3.10%

.1978-1980

3.25 %

3.10%

1978-1379

3.15%

3.00%

1974-1975

3.00 %

2 90%

1978-1979

3.15 %

3.00%

3.35 %

3.20%

3.70%

10:00 a.m.

e e

h
a

manager of Broad

Seattle, Washington

Street

7,500,000

;

Jan. 17 (Tuesday)

:v:

Alhambra City High Sch. Dist.,
Sales, with headquarters in ChiCalif;
cago, 111., since April, 1959. Prior
Columbus City Sch. Dist., Ohio
to joining the organization, he wal
Covina Valley Unified Sch. Dist.,
a
partner of Brown. Bechard &
Calif.
Co., a Norfolk, Virginia, securities
Excelsior Union High Sch. Dist.,

firm, specializing in mutual fund
shares, and, before that, worked
as

mutual

salesman

fund

Calif.

State

Contra Costa

Craig-Hallum,
Kinnard to Merge?.

Madison Locai Sch.

Pennsylvania

has

Kinnard

been

Company,

by John P.
Robinson,
President
of " QraigHallum
and
John
G.
Kinnard;
President of the firm bearing
name.

The
known
Inc.

■.

j.'-

•

will

.Werges,

partner

two

Craig-Hallum, Inc.,

1978-1980
,930

1980

3.35%

3,20%

3.00%

Alamance County, North

will
J.

Wainwright Office

__—

1962-1991

11:00 a.m.

1963-1980

8:00f)m.
:

(Wednesday)
^

2,000,000

Colo.—

——

Minn

—r—

3%.

1980

3.55 %

3.45%

Street under

;A—

(Thursday)

2,000,000

——

;

10:00

a.m.

(Wednesday)

Angeles Dept. of Water and
Power, Calif.
j

Franklin

the management Of

——

;
.

Los

FRAMINGHAM, Mass. — H, C;
Wainwright & Co. has opened a
branch

2:00 p.m.

1,285,000

—,;

Feb. 9

1962-1969

(Tuesday)

Minneapolis Spec. Sch. Dist., No. 1,

3 50%

_i___

—

8,000,000

—

Feb. 7

Arapahoe County Sch. Dist. No. 6,

3.50%

—

——

1,375,000

March 8

Eugene C. Ritvo,

•

1964-1976,,

Jan. 31 (Tuesday)

3 65%

1962-1978
>

Louis, Ferguson-Florissant Sch.

1979

H:00^i.m.

1,700,000

Sfchool District, Ohio—

133 South

J977

December 28, 1960 Indejo= 3.230%

1984-^1981.

(Tuesday)

Upper Sandusky Exempted Village

firms

(Special to The Financial Chronicle)

10:00 a.m.

-1,200,000

1962-1981

Carolina

New Mexico i————

1,550,000

Jan. 25
St.

PORTLAND, Ore.—John C. May
has become affiliated with Zilka,
Smither & Co., Inc., 813 Southr
west Alder Street,
members of
the Pacific Coast Stock Exchange.

office

1,920,000

—

Zilka, Smither Adds

New

' 1:00'p.m.

(Thursday)

District No. R-2, Mo.__-__-j—^
the

Maryland
;?0,303,000
Milwaukee, Wis. __—8,495,009
New York City-—76,500,000

will be consolidated at the offices
of

Jan. 19

Jan. 24

mutual fund sales.
of

7:30 p.m.
11:00 a.m.

23,000,000 ——

Vista Irrigation District, Calif—

John G. Kinnard & Company, will
be Vice-President in charge of

Operations

1981-1985

Santa Rosa County, Fla._

.become

Vice-President.

Executive

——

■

President, an$ Mr. Kinnard
be

District, Ohio
School

corporation will be
Craig-Hallum, K innard,
Robinscn

'
1963-1996.

State Public

new

Mr.

p.m.

1,840,000
1963-1981
1,700,000 "1962-1981

Van Wert City Sch. Dist., Ohio—

his

8:00

Districts.,

Building Authority, Penn.—

announced

a.m.
—

——1,600,000
School

Parish

merger

John

12,840,000

Louisiana

MINNEAPOLIS,

Minn, — The
of Craig-Hallum, Inc. and

9:00

County Water Dist.,

Holland, Mich.
:

1982-1986
—

a.m.

(Wednesday)

Calif.---—------————
Lincoln

9:00

30,000,000 1976-1978
1,000,000 „ 1961-1978

—„

Jan. 18

1962-1986

9:00a.m.
Noon

1962-1981

1,388,000
56,200,000

—

Sturgis, Mich.

1962-1981

1,268,000

Oregon

George B. Powell & Co., Inc., of
Norfolk.

.--L.

4,569,000
7,000,000

——

——————

New York

with

3V4%

1963-1981

h.a

announced. Mr. Brown has been

3y4%

r——

2:00 pm.
2:00 p.m.

Sari Luis

Chicago, 111

City, N. Y._

1963-2000
1965-1986

district

p^i

Jan. 16 (Monday)
7,500,000
Obispo Sch. Dists., Calif.
1,215,000

Inc.,

;V .8:00 p.m.

Fund,

Brbwn

Noon
10:00,

196^1^1
1962»l99o

3.55%

1977-1980

1962-1981
1961-1972

Northern Illinois University, 111.—

H.'

a.m.

4,440,000

Whitehall
Robert

11:00

tor

NeW Orleans, La
New York

4,200,000

:—

Livonia School District, Mich.-—--

t i o

3.15%
3.65%

—

1,830,000

10:00 a.m.
Noon /

(Thursday)

p.m.

3:00 p.m.
10:00 a.m.

1963-1987
1962-1984
1983-1970

Jackson County, Mich.—1,750,000
La Crosse,: Wisconsin-.
1,150,000

Inv

8:00

(Wednesday)
95,000,000
1,000,000

Davidson County, Tenn

—;

1962-1981
1963-1971
1962-1976

1,600,000
11

Jan. 12

n v e s

9:00 am.
4:30 p.m.

2:00 p.m.

1,100,000

—

s—

Seventh Street.

MARKET ON REPRESENTATIVE SERIAL
ISSUES

Connecticut (State)

1982-1986
1962-1973

a.m.

ting
Corporation,

Richard

Period

general factors,

California

Broad
I

money,

P^n like Governor

than anticipated a year ago. Other

including strong

senses

there for both New Jersey's railroads end the New Jersey Cover-

continuing

volume

common

frustrating piecemeal efforts being
proffered on the west bank of
the Hudson. Time is running out

nor.

voyance

again

clair-

Noon
/
8:00 p.m.
1:00 p.m.(

3,000,000 —
.2,100,000

Gainesville, Fla.
Reading, Pa

Mutual

11:00

1962-1983
1962-1989
1982-1981
1966-1996

30,000,000
4,800,000

—----------------—

through a 12 month
despite their initial logic

^rv.

California

Group

1962-1991

Sewer

School

Jan.

mil¬

1963-1980
1962-1984

2:00p.m.'
10:00 a,m.
10:00 a.m.
Noon

(Tuesday)

Wis

a.m,

Noon

1962-1981
1962-1990

1,400,000

Tacoma, Wash.
Washington County,

Broad

Street

W? haYe written before conferning the transportation prob-.
tems that confront our larger
urban areas and their impact upon
state ' ?nd .jjunicipal.^credit It
ff™5 ^ us that Governor Rocke-

Holly
Township
District, N. J

general

$400

Water

Mount

York

City,

;,,

1962-1987

1,250,000
1,070,000
1,225,000
17,000,000

Commission, AlabamaMorgan City, Louisiana—-

Corporation,
65
Broadway,
New

—————

Board

V,,

1964-1989. 11:00

1,250,000

Dist., Calif

Mobile

Robert H. Brown, Jr., was elected
President and a Director of Broad
Street

Jan. 10

Louisville, Ky.

p.m.

(Monday)
—

Los Angeles Sch.

2:00

(Friday)

Canton Township Sch. Dist., OhioConcord, California
•
Medina, Ohio
Port of New Orleans, La
r

a.m.

1,835,000
1,000,000
2,000,000
6,000,000

Jan. 9

marks

Jan. 6

Belleair, Florida

Broad Street Sales

the

...

The Governor's reported plans

County, Ga
Hattiesburg
Municipal
Separate
School District, Miss.
Hidalgo Couhty, Texas——,—
Minneapolis, Minn.
,
Toledo City School District, Ohio
^.

9:00

1963-1984

1,800,000

—

lion

„T

seem refreshing from all angles,
He calls upon the state, the rail-

——

Fulton

Brown Pres. of

1962-1981

2,300,000

—

(Wednesday)

Jan. 5 (Thursday),
28,980,000
14,525,000

Connecticut

inventory situation is not
even though moder¬

distributor

serve

period

unfavorable

bond market.

to show that first of the year predictions may easily fall far from

their

pro¬

such issues close to market.

Railroads

they

nor

(Tuesday)

Wichita County, Texas-,-

spective negotiated financing that
may
be generating. /At present
there appear
to be no sizable
The

8:00 p.m.
11:00 a.m.

District,

Jan. 4

put this near-term total
considerably higher. This general

The Problems of Commuter

These majority views of course
not eventuate
did
Financial

College

Calif.———————

issues

an^Prefsag?^ ne+w cycle,

Proportions.

decidedly went

Junior

dollars. Unscheduled but expected

international

further

ment

and

Jan. 3
Cerritos

large additions have car¬
ried the total to over half a billion
recent

estimate

1962-1981
1963*-1985

1,750,000
1,100,000

Wayne County, Michigan-

rapidly expanding and

been

(Thursday)

bids

sealed

for

calendar

This could detract fiom the pros-

Dec. 29

Bath Local School District, Ohio-,

money market complications

pressed by corporate and govern-

did

The year i961 begins with the
ately heavy. The total of state
tax-exempt bond market on a.
and municipal bonds as expressed
reiatively high base with a higher"
by the Blue List is currently
one in immediate prospect. Strong
$377,615,200. At several junctures
forces will be necessary to main-. during I960, this total has been
tain this level through any lengthy
larger. On balance, the 1961 mu¬
period; with new issue volume at.
nicipal bond market gets off to
present expectancy. Any higher an auspicious start; but it should
p011(j market level will inevitably b& interesting.

market generally was to be hard

...

all

was

tabulations we list the bond issues of

■

»,

A year ago it was easy

has

Thursday, December 29, 1960

for which specific sale dates have been set.

expected.

Heavy Business in Sight
The

purview.

almost traditional to specu-

come

the

year-end, and political insinuations, seem favoryear, it has be- able to the market from present

approach the

Larger Issues Scheduled For Sale

market

BY DONALD D. MACKEY

Jacksonville

12,000,000

—

April 3 (Monday)

Expressway AuthorityfFla*——

40,000,000

-—

2000

Volume

192

Number

6016

The

Commercial and Financial Chronicle

least; and much has already been

The-Economy's and Steel's

benefits

done in recent weeks by the present Administration.

can be measured in

has. moved

curtail

^expenditures

military

our

abroad

—-benefits

By Roger M. Blough,*
*

Chairman of the Board, United States
Steel

Corporation

It has

slowdown of the trend of
the

pricing curselves out of world markets to

point where we once again

the distance steel,

in particular, has to go to reach home base.

four-fold solutional attack

out

paints

only> the

not

Allies

Admitted is

become competitive.

can

In a

th^problem of our gold-flow, Mr. Blough

importance

innovation

research,

but

productivity must

cnon

chnii

ixra

President

h4lf

about

iho

United

the

who

man

Noted is the improved trend in steel
with

from

But

the

moment

this

steps

man

into

what

been

called,

has

the

h i

the

President

all

q f

people
America,

every

confronts
he

-a

our

future

heavily

Washington,'1

the

wish

de-

5
voutly the successful solutions of

the

problems that rr.uxxxxxxxsi,xcxLxvjxx
Administration
uiuuicuio

txictu

will face, nor can he fail to contribute in every possible way to
has

been

received

all

our

—

the

.which

policies

that

the

was

and

that

[ something less
slightly
5

the

•

■I?'

the

•

received

such

man-

•

not

know

device

apy

by which it is

possible to determine scientifically

'which

the

approval

have

may

the

keep, America
secure,

it dynamic and to

keep it free! ;
goals to

the

to keep

agreement
may

alone. > It

fullest

upon

these

national

goals,

the

widespread and vigor-

disagreement;

ous

that

our

by which they
best be attained are often a
of

all

us—of

and I

suppose

either

political
persuasion—have been wondering

how the polic es and
new

actions of the
Administration are going to

affect the progress and growth of
our
business
and industrial system.

That, I

suppose,

liatufal and

reasonable reaction to any change
in

cur

strengthening

industrial

enumerate

than to accomplish; but clearly

first step in this direction is

the

intensification

re-

search effort

of
.

total

our

research to de-

vise

new
products; research to
improve the quality and usefulness of existing products, and research to discover and develop

facilities which have always been the

responsibilities

grave

all of

S £

'V™1.1 b? .UP t0 "S>

that

our

'to

with

us.

our competitive potential volved in the production of the
the g''eateSt posslble dls~ flnlshed ltemsPatch.
Our Wage Gap

do the balance of the
inrrpa<?incr

QaiPc

our

competition
producers
in
the

foreign

Challenge

?irct
first,

•

10% Effort

„

Solutional
,

The broad basic elements of this

all

■

Four-Point
,

task

markets of the world.
markets of the world.
s

thot

two

are common, I suppose, to
dht let*pfises
'"Thev include

innovation

—

the

One

hourly
foreign

employment
„„„„„„„„
competitors
ir,WAr

than

told

ra5G

are

all

heintf
of

scen(j

fnr

national

Administration,

but since there is no ready answer

the
our

substan-

are
thnsp

the

raw

a'M'* the consequent creation of

States, and that, in many
ia

owpr

than

'material

offsets

methods

advantages

anv

and
mav

Second, perhaps, is ^racindustry our
the c w 11 3 b a 11 b ""F^vcxueiu of L
constant improvement ux hrmrjv Wfltfp ratp„ ranpp fr-nm
]
rafps
frnm
quality to the end that American
ttmL as much m
products may retain or increase J""® l° se^e" X®ska3JV"cn
new markets.

familv

Gllr

eold

even

and

de-

with

de-

were

once

1 do not sug§est' of course, that
can—or necessarily that we
should-r- expect to achieve
sickly a fixed goal of this kind;
but certainly any progress we can

180

reserves

awav*

creditors

for

savings

our

drained

Upon

mands

rlearlv

high standards of American production. And when all of these
things have been accomplished, a
fourth—and key—element is more
intensive and effective salesman-

"?ore

ef^cl®nt

ai]d P^oduc-

tion methods, and by the resultincrease in productivity that
has made it possible for our workers to Produce ever-greater quanin this direction will bring ship, by which I do not mean
Continued on page 26

payment, there would

hardly be
enough
left
in. the
;
family sugar bowl at Fort Knox .,1.
f0 satisfy fully their claims upon
us
.
*
1
—

These, securities
„

were

They

placed privately through the undersigned with institutions purchasing them for investment.
offered for sale and this advertisement appears as a matter of record only.

are not

this adverse balanc-of' 1

Uieariy, tnis aave se oaia. c^ oi

that

costs

tially lower than those in the

iwf' United
develop-„

and.^rvice^

not

need

D^onle

element in the cost of Americanmade products is the cost of employment. Throughout American
industry as a whole, employment
costs, direct and indirect, constitute at least 75% of all costs in-

go(Ws^nd servicef in

measu

means

Ln-ilv

couid

the

c on e c

.United'States

James Talcott, Inc.

sueh as military support'

?nd

things abroad that other na-

$5,500,000

tl0ns are not do,n8 m this country. •:

as a
is

and methods

matter

enhanced.

construction and

things, concededly,

easier

national

earth.

But universal

means

new

of these

much

cus-

^.kh Twu
win

To curtail our annual expendi- -•
■which
Americans
everywhere tures abroad by the necessary $3*:
have always been committed; and billion or more, the government
these are the goals which today could . terminate: the foreign aid *
afford
the
greatest
hope
and program
completely.
It could
promise that a lasting peace with bring home the American over-.;
freedom may yet be achieved 0:1 seas military forces which serve
this

would
mean

All
are

disap-

strong, to keen it
are

would

forms of customer
appeal and
tomer service,

new

dollar.

.to

These

work,

but

s m

^eas

Flow

Thio
„

States thus far has fortunately had
mandate

jobs

salesmen

development

-and lf,™ c°uld reclaim here at their superiority over competing
And
m?
nn™W'home 10%. of the markets which items made elsewhere. Third, is
°
f,"?'
number are n0
held b
imports from th reduction of costs and the 'in_ personal observation is that bus
years now, we-as a natmnabroad
the current adverse bal- crease of
productivity by every wage gap 1S stlU wldewn«'
wfgn Sri- 5n w?S 'ance of international; payments practical means.so tharAmen^^
able-to.,
^from the^ 4 like would be ^iped out c®mPletely' made goods can be offered in cope with 1this employment cost
bf^ivin« b- and the dra^n,?ni01ir gold reserves world markets at the lowest pos- handicap chiefly by reason of our
lts
whet^e^ it°be
would be halted.
sible prices consistent with the advanced technology
by our

in the

|"°ment

-a

the

think,

spec'fic by ' example,
of the critical challenges con-/

proval of-the voting majority; but,

proposals advanced

Senator " Kennedy

4won

could get back on a payroll while
the job security of others, now at

evenly

although very
a
majority of
cast, it has been

vote

removal

And merely byT way of m#^-fronting us today is the steady in§ the scope of The problem, let
and
and
raDla
raoid outflow of American Pe
OUtllOW
Ot
American
"
P0in*
^
if we could
,7
gold to"foreign countries, and its increase by 10% the value of our
consequence to world confidence exports to foreign nations
one

his
fact

—

Now

process

;

has

less—than

total

seek

out without thereby under-

^oad5
a.br0.ad>.

nation today

economy

our

require

•

pursue

almost

argued that he has

Gold

programs

during

view

vote

divided

and

advocated

candidacy.
.

President

new

"mandate"

way

group

considerable

debate in recent weeks of course
weeks, ol course,
as to: whether—and if. so to what

extent

also

the

•

the achievement of those solutions.
There

for

ef-

thoughtful

fail

can

ment

nation

Our.

upon

'.f^cti^enesslqf1'The^Administration
American

other

cann0t befmetK successf"lly segby
government or by any other

«.

does—the

of cooperation by

thousands

persons who are now without

the

one

anree^fnllv

met

when

•

fhp

it will

Surely, the total challenge

President

producers

will

the

reveal

may

wholehearted support of all loyal
Ameiicsms. In these critical times

depends

foreign
that

share with this
Administration the : obliga-

eeneet

every

time

society,

our

which

Roger M. Blougii

and

will command
—as

mean

mining still further the integrity nation and our government must
new
of the dollar., And that, I believe, face in the years immediately
tion to play our full part in keep- is where we, in business and inahead—there is to me, but one
ing America strong, seCure, dy- dustry, come into the picture; for answer: We can do this only if
namic and free.
*
•
/
When government has done all we improve our competitive posiin

office, he

new

•becomes

that

and

loneli¬
of

would

sales in markets

our

rather

—

"magnifi-

ness"

held

faster-talking

—

picturesquely,
cent

a<?

To increase
now

the

secu-

—it occurs to me, as it doubtless
has to others, that a more constructive mental exercise at this

elections.

ber

mip<?tion—pvf>pr>t

passage

in the Novem-

tHq

a
larger share
foreign aid and

which

Meanwhile, and most important -^l t^astrous consequences of we haJe doubted our activity m
of all, perhaps, it can—and must— mild"°n.
■
im* Iieiaavoid resolutely d^iy temptation
In other words, it would help
But research alone cannot proto embark upon an inflationary our nation and our government vide the answer to this problem
time would be to ask ourselves program of deficit spending that to meet many of the
economic of rising costs which is our basic
how our business and industrial would undermine faith in the sta- problems it faces in many areas,
competitive hurdle. Others have
system can best help to meet the bility of the dollar, and would both at home and abroad.
faced this same problem in varigrave
responsibilities
and
the thus signal our creditors abroad .
So when we ask ourselves how °uf f°riPs
degrees, so without
critical problems which this new to start a "run" on our gold re- we are going to
discharge this belaboring the point, let me capAdministration has inherited; for serves. We can work our way out mandate of ours
how we are sullze « this way:
it is clear, I think, that we—in of these difficulties, but we can't going to play our full part in an
It is not news to anyone in
business
have a mandate, too; spend our way, out or buy our all-America
effort to meet the business that the most important

States,

support ox
voting public

the

foreign competitors!

npw

the

won

accord

persuade
Western

assume

cost

negotiate

compared to the 1950s, and the need to liberalize our depreciation
allowance

forces,

those

terms of gold

people—their

new
techniques ; and
tools
the backbone of our national de- through which major cost reducsome foreign trade barriers which
fense. 'It would stimulate new tions are accomplished,
still discriminate against Ameri- growth in almost every segment
So it is to our research centers
can
exports; and if necessary, it of our economy.
And it would that we of United States Steel
can
try to* specify that a larger enlarge the resources of govern- have looked for major help to
share of our foreign aid payments rnent
at all levels without re- find the answers to the competibe
spent
for the
purchase
of course to the deadening effect of tive problems that we face; and
American products and services, increased taxation, or resort to within the last five* years alone

and

longer be lost to any further widen¬

ing of the employment-cost gap.

the

—

prosperous

Hopefully,

also the fact that the reduction of costs and the

marketing,
increase in

our

military assistance.

■

success

some

our overseas

sought—with different deof

grees

hopeful view of our ability to continue the

numbers of

•

Steel executive tikes

substracting from the strength

beyond

rity, their satisfactions, their welfare and their happiness,

wherever this could be done without

far

Subordinated Notes due December 1, 1975

powerful deterrent to further
aggression.
It could

$6,000,000

Communist

return to a national philosophy of
high tariffs and trade restrictions
W1th all t~e international ill will
and retaliatory action that would

Capital Notes due December 1, 1975

Ihus be touched off. And it could
resort, to solutions w. ich would '
proscribe our people s freedom to
.travel or to invest in. long-term
or short-term investments abroad,
Likewise,
could

cure

I
a

suppose,

tcothacbe by

dentist

F.. Eberstadt

amou-

tating the patient's jawbone. But
short of such drastic action there
is still a great de3l that the gov-*
ernment can do in the way of

providinga

partial

solution

December 29, 1960.

Co.

White, Weld

Co.

The Commercial and Financial Chronicle

(2672)

Dilbert's

DEALER-BROKER

Leasing &

nue,

Wall

the

Gutman

—

York

New

St.,

Wall

Co.,

Discussion in
Stearns &

—

Letter

in the same letter is a

N. Y. Also

briefk discussion

Photo

Supply.

Co.

Sixties in

Tail-

N. Y.

available

bulletins

York

New

are

Philip Morris, Inc.,

Leesona Corp.,

Stock Notes

Bank

Circular

—

York City Banks—
Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.
leading New

letter—Hemphill, Noyes & Co., 15

Investor

Market—Study—New York
Exchange, 11 Wall St., New
5,\ N. Y.

Stock

Stock
York

Market

Japanese
Yamaichi

York,
York

Review

—

Securities

Co.

—

New

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

reports

Yawata Iron and Steel

Ltd.

Co.

the

and

Honda

and

Motor

Co.

Market—Bulle¬
Corp.,

U. S. Government

New York 5, N. Y.

120 Broadway,

Aid Inc.

Hanseatic

York

Memorandum

—

Dean

Co., 50 West Adams St.,

Witter &

111.

Chicago 3,

Japanese

Stock Market
Securities

—

Review

Co.,

Ltd., 25
Broad
St., New York 4, N. Y.
Also available is a study of Sumi¬
Chemical

tomo

Co., Ltd.

Stock

Japanese

Market

available

Also

analyses

are

Yawata Iron & Steel; Fuji Iron A

Hitachi

Steel;

Limited

(elec¬
Sumi¬

tronics); Kirin Breweries;
tomo

Chemical;

Toanenryo
Chemical

Oil

Rayon;

Toyo

Company; Sekisui

Co.

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

cussions
Pak

showing

between

son

stocks

used

Averages
counter

the
in

and

Folder

compari¬

listed industrial
the

the

industrial

National

the

—

up-to-date

Dow-Jones

over-the-

stocks used

Quotation

Bureau

Averages, both as to yield and
market performance over a 20year

period — National Quotation
Inc.,
46
Front
Street,
York 4, N. Y.

Bureau,
New

are

is a re¬
—

Loeb, Rhoades & Co., 42 Wall St.,
New York 5, N. Y, Also available
are reviews of Gibraltar Financial

St., New York

Universal

and

York

Co.,

Cross

Gulf

York

Reynolds

—

Co.—Analysis

Finance

Co., 2 Broadway, New

available

4, N. Y.
—

Re¬

Charles

view—Kippen & Co., Inc., 607 St.
James

Also

West, Montreal, Que.,

St.,

Certain-Teed Products—Review—

Gerald S. Colby, 31

Milk St., Bos¬

ton

9, Mass. Also available are
reviews of White Motor, General
Tire and U. S. Borax* Chemical.
Products

Certain-Teed

Corp.

—

Report—J. R. Williston & Beane,
2

Broadway, New York 4, N. Y.

Citizens
Bank

Southern

Memorandum

—

National
-—

Tucker,

Antonio 5, Texas.

New York 5, N. Y.

way,

Coastal

Gas

States

Memorandum

Marietta

Cooper

—

Courts & Co., 11

St., N. W., Atlanta 1, Ga.
Bessemer

Corporation

Review—A. M. Kidder & Co., Inc.,
1 Wall St., New York 5, N. Y.

York

Boston

—

Corp.,

15 Broad

York

—

Including

General

Corporation,
Co.,
and

Study
analyses on

brief

Drive In

Corp., Franklin

Warner

Seismograph

Swasey

Services,

Commonwealth

Oil

Inc.,

Refining

Davis

York

the

St., New

same

Cadre

Report

Wall St., New
Also available in

circular

are

and

data

Litton

list

Haims

was

In¬

(Palm Springs,
Traders

Asso¬

ciation Annual Convention

at tb*

Palm

Security

Springs Riviera Hotel.
1961

(Hollywood,

Bankers

Association

26-Dec.

Hollywood

Conklin

Or¬

officer

Holton,

Co.

fices
New

Broadway,

York

name

Ellis

547

Cauldwell

Committee

City,

under the firm
Company.

Analysis

Co.

Mtge. Inv. Foundations

—

Foundations, Inc. is engag¬
ing in a securities business from
offices

Officers

Northeast

601

dent;

Angeles

are

81st

St.

Ernest

Lee J.

Unger, Presi¬
Kaas, Executive

Vice-President;

George Headley,
Vice-President; Jay B. Keys, Vice-

14,

Co.

and
Secretary;
Rein, Treasurer.

Alfred

Nathan

•

Mattson, Chicago, 111.

Chicago,

Meyerhoff,

Illinois.

Raymond Rusmisel, Lehman

Brothers, New York, N. Y.

Pini-Dietz Formed
been

North

Lake

securities
J. O.

Dietz,

engage

Officers

business.

Vice-President;

Jac-

Pini, Secretary; and
Dietz, Treasurer. Mr.
Pini was formerly with WebberSimpson & Co. and James, Martin
& Co. ;-'v ."" v.;
'
,:• quelyn

Hofheinz

Opens Office

POTTSTOWN, Pa.—Carl M, Hof¬
is

conducting

securities

business from offices at 378 High
Street. ' •••<-.

Roran Investments
PEORIA, 111.—Roran Investments,
Inc. has been formed with offices

Service—Report—

Meyerhoff & Co., 120
South La Salle St., Chicago 3, 111.

Freehling,

Co.

Street

offices

Pini, President, Leonard

Maude

—

Milwaukee

with

formed

Co.

111.—Pini-Dietz &

AURORA,

heinz

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

Paper

Birmingham, Ala.

Company,

and

—

Stock

The First
Corporation, Columbus,

Ohio. ~

Mortgage Invest¬

ment

Co.

N. Y.

Supply

Edwards

Midwest

;Barthelmas,

Columbus

are:

MIAMI, Fla.

Bernard

Memorandum

the

the following
individuals to membership in the

President

National Linen

elected

Exchange

314

Calif.

Memorandum

Midwest Exch. Members

has

Tapes—Analysis—

Fuel

;

CHICAGO, 111. —.The Executive

Avenue,

of Burgreen &

Gravell

St.,

Corp.,

—

Wall St., New York 5,

Mountain

nual convention.

Ned

CAMDEN, N. J.—George Gravell
is engaging in a securities busi¬
ness
from offices at 532 Cooper
Street, under the firm name of

■>

Paper-^- Memo¬

Los

•

W. Berney Perry, Berney Perry

Ontario Paper

St.,

-v.

American Bankers Association an¬

Forms Gravell Co.

Broadway, New York 6, N. Y.

Video

N. J.)

Chemical Corp.

Street

and

(Atlantic City,

Sept. 23-26, 1962

Exchange:

Inc.

120

Broad

207 East

16-20, 1961

Calif.)
National

5, N. Y.

Pulp

Nekoosa

Oct.

an¬

convention.

North

formerly

Simpson M. Burgreen is conduct¬
ing a securities business from of¬

(

Minnesota

was

tax-

Co.,
Inc.,
1510
Chestnut
Philadelphia 2, Pa.

desta,

;

American Bankers Association

Burgreen Opens

An¬
Broadway, New York

Mobile

(San Francisco,

15-18, 1961

Calif.)

Exchange.

—

Industries,

dustries.

Mr.

Hull &

randum—Sheridan Bogan Paul

Oct.

Investment

& Hollywood manager for Mitchum,
Rochester Jones & Templeton and in the

Dempsey-Tegeler & Co., 210 West

Steel—Data—Morgan

Co.,

West

Memoran¬

6, N. Y.

First

Park Lodge.

the Pacific Coast Stock

—Analysis—Hornblower & Weeks,

5, N. Y.

Copperweld

—

Witt

Newport

Seventh

1961—Market

Industries,

ganization, ' Inc.,

Hudson

annual meeting at Jasper

Canada

Beach Hotel.

—

The First

—

Pacific

—Bulletin—De

derson,

Investment Dealers Association of

Annual Convention at

Henderson
&
Co.,
210
Seventh Street, members of

& Co., 1516
Philadelphia 2, Pa.

Lamtex Industries

Producing

Holton,

securities.

Hawaiian

Hey den

(Canada)

June 22-25, 1961

Fla.)

Taggart

available

New

Co., Inc., 52
4, N. Y.

B. Bonbright

Building,

St.,

sheltered

Canada.

ing at the Shamrock Hilton Hotel.

Haims has become associated with

past

Locust

—

LOS ANGELES, Calif.—Martin J.

—

study

Aluminum

Harvey

Electric

Columbia

British

Analysis

—

Parks

Holton, Henderson Co.

N. Y.

14,

& Co., 1 Wall
N. Y.

System Co.

Inc.

Pumps

Powers

Co.,

Raceway

—

Martin J. Haims Joins

Co., 120
5, N. Y.

York

New

Broadway,

Gould's

•

12-13-14,
1961
(Houston,
Tex.)' Texas
Group
Investment
Bankers Association annual meet¬

—

Corp.

Castings

Steel

Analysis

Pont

Everett

Western

Commodore.
April

nual

Memorandum

—

ciation annual dinner at the Hotel

(Special to The Financial Chronicle)

dum—George D.

—Drefus &

(New York City)
Dealers Asso¬

April 7, 1961

New York Security

Nov.

available

Also

discussion

St., New

Wall

IN INVESTMENT FIELD

Broadway, New York

Discussion

—

Towne

Yonkers

Products.

Oil

Frontier Refining

Also

Cooler.

—

Inc.,

Francis

General

Co.,

Ford Motor Co.—Review—Carl M.

Monarch Marking

Co.,

Memorandum

—

Anthony

Vending,

Analytical brochure

for

James

Yale

available

Powder

Hercules

Co., Van Nuys Build¬
14, Calif.

Angeles

Waterman Pen

Oil

Equity

and

Interstate

Los

Memorandum

—

St., New York 5, N. Y.

Corp.

Gas

Conn. Also

data

Outlook for Investments in 1961—

Outlook

ing,

Industries.

Hartford

Co., 621 South

Wall

Oil

5, N. Y. Also available
port on Air Products.

Machine & Foundry

Air Lines

—Sutro

Portion

Colorado

Oil,

Richards

United

Graht Co., Onyx

State

Empire

Montgomery St.,
Calif.

dum—Woodcock, Moyer, Fricke &
French, Inc., 123 South Broad St.,
Philadelphia 9, Pa.

Inc.,

Chemical, American Biltrite Rub¬
ber,

United Aero Products—Membran-

Dis¬

—

Henderson's

Francisco

Spring St., Los Angeles 14, Calif.

Investors

Smith

—Analysis—Green,
Over-the-Counter Index

Inc.

"December"

Inc., Foster

Fay Inc., 221

—Hill

Also

Beneficial

Survey
—Nomura Securities Co., Ltd., 61
Broadway, New York 6, N. Y.
—

—

Broadway, New York 4, N. Y.
in the same issue are dis¬

Co., Inc., 20 Broad St., New York

Data—Cooley & Co., 100 Pearl St.,
—Nikko

San

Co.,

Moore,

Letter—Cacchione

Shields

Can—Report—Blair

American

Ltd.

Report

—

Brokerage

Co.—Analysis—

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

Corp.

St., New York 5, N. Y.

Broad

tin—New

Institutional

1961—Investment

for

Stocks

Ten

cussion

Thrifty Drug Stores Co.—Analysis

Resources

Fischbach

Co., 72

Swingline Inc.—Analysis—Hooker

Corp.

—

Broadway,

Economic

—

Federal

Southern

discussion — Republic Natural Gas, Atlantic
Henry Bach Associates, Inc., 245 Coast Line, MSL Industries, Texas
Chicago Pneumatic
Fifth Ave., New York 16, N. Y. Instruments,
Tool, and Collins Radio.
($1.00 per copy)

spin?

Premier

H. Hentz &

—

Stepan Chemical

Tower
Residential Building—Analysis of Petroleum
Building, Dallas, Texas.
outlook
Goodbody & Co., 2
Also

Are the Soaring

Co.,

Schweickart

—

Broadway, New York 6,

Co.,

review

Microwave

Airline Industry

Noel

Broadway,

St., New York 5, N. Y.

Walston

Alstyne,

4, N, Y.

New York

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

available

York

Wall

5, Texas.

Van

—

Co.—Analysis

Hickey,

Report

—

Lentz, Newton &

—

Railroad

Thursday, December 29, 1960

Standard Kollsman Industries Inc.

Capital

Ets-IIokin & Galvin, Inc.—Report

BE PLEASED
PARTIES THE FOLLOWING LITERATURE:

INTERESTED

SEND

International

Study

—

Antonio

WILL

MENTIONED

FIRMS

THE

THAT

UNDERSTOOD

New

Co., Alamo National Building, San

AND RECOMMENDATIONS
IS

Inc.,

Electronics
Ltd.

—Vilas

Termo

Madison Ave¬
New York 16, N. Y.

Company,

INVESTMENT LITERATURE

Line

Soo

Development

Corp.—Analysis—L.

securities

business.

Officers

are
Janice A.. Rodes, President;
Marjorie C. Hesse, Vice-President;

—

Co.,

and

Michigan St.; Milwaukee

New Kidder Branch

North Prospect to engage

5617

Hesse,

Treasurer.

.Secretary4:

Z >

ATLANTA, Ga.—A, M. Kidder &

Co., Inc. has opened

branch of?
Street,
Northeast, under the management
fice

615

Pea chtree

Coy R. Lander.

»>•.«

2, Wis.
Nortli

American

Merchandising,
&

Co.—Memorandum—Russ
Alamo

-National

Antonio

5, Texas.

Oklahoma

provement

j;
Municipal

City

Authority

Co., 135 South
St., Chicago 3, 111.
veen

Pilgrim
Co.

;

Specialists in Canadian Securities

Salle

Becker

Nu-

Ristine

Grace Canadian Securities, Inc.

Salle

Members: New York

Co.,/120 South

St., Chicago 3,

Security Dealers Association

25 Broadway, New York 4, N. Y.

TELEX 015-220

•

HAnover 2-0433-45

•

NY 1-4722

111.

Incorporated—Data— F. P.

Ranco

Principal foe \,

Im¬

National Life Insurance
America—Memorandum—

Brokers, 'Dealers and. Financial Institutions

;

Water Sys¬

Bonds—Circular—John

tem

Co.,.
San

Building,

Orden Executed

York

Co., 15 Broad St., New
5, N. Y.

Rank

regular commission rates

Organization—Memorandum

—Bache

York

through and confirmed by

& Co., 36 Wall St., New
N. Y.

Member*: Principal Stock

kr
Skil
liam

Corporation—Analysis—Wil¬
R.

Staats

Co., 640 South
Spring St., Los Angeles 14, Calif.

The
-

National

Aeeociation

Exchange* ef Canada
0/

Security

Broadway. N»-w York 4. N

Dealera

t'3s

1,0 *<(•

ar^**

Volume

192

Number 6016

The Commercial and Financial Chronicle

...

(2673)
available,
rents
will
increase
slowly. There, however, need not
be

higher

farmers

are

greater

Financial Events for 1961

crops

processed

By Roger Babson

constantly
which

The

ways.

of " food:

cost

raising
being

are

economical

only

The

for

reason

the

and
we

pessimistic about the world political outlook.

for

does not

anticipate

will

there will be
in

what

1961.

home

into

cast

divided
sections

eight

cated

This

business

that

idea

from

New

I do not expect any

had

won

be quite

worried, but with

lar

and

President
his

will

not

with

that

have

either

South.

the

will

these

Annual

all

the

take

optimistic
I have

years

the first

was

take

time that

definite posi¬

coming out

not good.

is kept

are

net

many cases the gross

off.

legisla¬

increased

but

the

Many companies will show

decline

for

1960

compared

with

1959. Prosperity has continued so
long that most manufacturers, re¬

He will recommend certain

At that time the Dow-Jones

perhaps

tion.

welfare

refused

now

make radical

become

Average was 670 and
today it is fluctuating around 600.
Corporation
earnings
reports

Democrats

not

by high
subsidy would

new

legislation, which will in¬

the aged,
Security, a
new
minimum
wage,
increased
public housing, help for the dis¬

tailers

and

ing

will

tressed

will see lower prices for the DowJones Industrial Averages. I hope

medical

clude

increase

for

care

Social

areas," and

education;

•

aid

'V'.;

■■

this.

Commodity Prices, Including Gold

Higher prices of commodities at
retail

the

certain

level

decline

Prices

stances.

will

The

the

first, of

will

less

they

their

duce

are

that general

means

All

re¬

this

business

may

show less increase in

profits
vious

activity and
than in the pre¬

1961

Now, in relation to gold: Threeof the Free World's gold

fifths

African

from

comes

from

the

There

U.
are

mines;
the

one-

bal¬

and

Canada,

from

ance

where.

and

many

else¬

rumors

will

"revaluate",
creating a higher price for gold.
This will not happen during 1961,
and I think that the price of many
gold stocks will decline during
that

.the

discussion in Con¬

1961.

The

gress

of possible devaluation will
us to lose more gold. Every¬

cause

thing

verv

probably

will

avoid such

done

discussion and I be¬

lieve President Kennedy

will pub¬

licly state that he is opposed to it.

Temporarily, dollar devaluation
might

shot

in the

American business, but it
cure

the

cancer

foreign

valuation

pain.

banks

legislation

question of gold de¬

and; not

speculate

arevnow,

less

take-

for

most

not

feared

With his small pop¬

begin
"trim

and

■

now

and

favorable

today.

Our

is looked upon

now

dollar

by the world

standard.
Farm

Income

and

bonds

continue

levels
will

around

1961.

wise

their

Many

shifting

from certain stocks to bonds.

now

There will

be reductions

in stock

dividends; hence it would be much
better

hold

bonds

with

fixed-

interest payments rather than risk
a
reduction in the dividend pay¬
ments

stocks.

especially call
"tax-exempt
general obligation municipal
bonds." These
est

piunicipals

direct

lien

the fixed-inter¬

are

cities

of
all

the

with

taxable

property in the. city. I would ad¬
vise against holding bonds of such
large cities as might be vulnerable
to
bombing in
case
of
World
War

III.

favorite

those

municipals
the capital cities in

are

the

interior

of the country; in fact,
growing interior city should
high-grade investment. These

any

bonds

must

respective
The

their interest ir¬

pay

of business

""capital

cities

conditions.

especially

are

helped by having the payroll

the state governments.

Living

Costs

Living costs

and

Inflation

rise somewhat
due to the increase

during 1961
population and
comforts

the desire for

and

convenience.

A person like

myself, who has had

children

and

knows

how

eration
what

higher
mary

considers

the

uries.

each

grandchildren,
succeeding gen¬
necessities

parents considered lux¬

This,

together

with

the

costr of labor, is the pri¬
reason

for

today's

with

less

cannot

profits,

Larger

farmers

boom,

but

should be at
My forecast,

levels.

details, is:

should

The

any

average,

satisfactory
in

help.

expect

...

volume

than

marketings

offset

any

re¬

excise

record_

Looking
that

back

have

been

real

these

rich,

growth
was

1960's

gent

learn

that

the

intelli¬

farmer

is reducing his in¬
which is always an
optimistic sign. " As I dictate this

sections,
in

the

with

mortgage
all

which

farmers

year

ing

will, of
weather;

upon

prices

receive

for crops

pend

moisture

course, de¬

but

each

agricultural science is help¬
the farmers to avoid early

Hence,

building and
tion

new

however,
urban

for

and

forecast

secured
This

substituting
any

creases

the value of the

and

taxes.

increases
•

•

Therefore,

adjoining

••

•

needed

secure

moisture.

Employment, Wages and Taxes
Strike

activity

may

well be at

post-war minimum during 1961,
with any dislocations limited
to
a

independent

"separate

companies.

1961

may

see

real

prices hold

their

own

and

rise

Small

and

estate
even

losses

farms

certain

near

sections.

cities will

con¬

tinue to increase in price, and this

workers

Nov.

cannot

1961,

the

Every, family
justified in mortgaging to buy

home in 1961, but I doubt if 1961

real

until
The

1960
I

emplovment

average

was

about

forecast that

million

67.000,000 workers.
1961

fewer

will

average

workers.

wage

Countrywide, unemployment
reached

1960,

million.
that

high

and

for
The

basic

4V2

hit

means

ics,

becom¬

that it will

exceeds

tem

they have been under for 150
Here, Russia, Belgium and
France
are
playing
a, waiting

years.

game
can

see

the

cannot

now

imagine the Russians

going to

over

war

unless they are
business, mechan¬
Certainly, the

Those

executives who

World
I

this

cannot

Outlook

conscientiously

Forecast

for

1961

without

calling readers' attention to
unsatisfactory situation that
find the world in today.

the
we

I do not

positions should strive to. do

Kennedy

President.

countries. For instance, the
Communists in Italy received only
19% of the vote in 1946, but 28%
in
1960.
Even
in
France, the

Communist vote is again increas¬
The
money
interests
of
France want the Algerian rebels

ing.

and

small

want DeGaulle to

freedom.
a

few

When

weeks

businessmen

give Algeria its
was

ago,

France

was

genT

erally conceded that if DeGaulle
should suddenly drop dead, chaos

might reign.

I dislike to end this

with

these
pessimistic
comments; but even if our coun¬
try is going along on an even
keel, some occurrence in some
other part of the world could up¬
set
all our plans.
HENCE, BE

SURE

YOU

HAVE

MADE

WILL!

M/% f'T

and

*338

Dealers

Specializing
in

Yamaichi

lib:

Securities

Japanese

Company

Securities

This may

apply to the settling of strikes and
contract disputes.
The AFL-CIO
will influence

during

1959-60.

New

votes in Con¬

1961-62

than

York,

The conservative South¬

Democrats,

however,

Inc.

will

unite with Republicans to' block
radical labor legislation. Congress
certainly will - not
outlaw
the

pean

Brokers

now

hope to have a
key to the White House with Mr.

ern

Berlin.

disturbed about the gains
in the Communist vote in Euro¬
am more

electronics.

onto their jobs.
Labor leaders

gress

nations

new

make good by themselves.

forecast

the demand.

1961

demand for executives will be less
1961 than it has been for some

have

been given their in¬
dependence from the colonial sys¬

years.

year to speculate
estate.
The
bloom
is

difficult for those getting

well trained in

which have

cutting

through schools and colleges'to get
positions

new

African
be con¬
countries

5V%

difficulty

industry
is
labor force is

the

million* in

mav

while

back, the
ing larger. This
be

1961

good

surely

earliest.

Most steel contracts hold
June 30, 1962.

with

stamped out for good, while the

property.

industry, but not until September,
Railroad

Na¬

farmers

off in Florida, where the
supply of new houses temporarily

until

Congo,

United

suburban

will

1961.

of it¬
hin¬

will be true of most well-drained

First important industry-wide ne¬
gotiations will come in the auto

strike

The

help.
The
great
question, however, will

new

real-estate

Russia.

now

cerned

pulling
large cities and

apartment
playgrounds. When
building is built, it in¬

help

any

from

tion would be improved
by Rus¬

brick

This
intensified by

progress.

sia's

with

new

land

by, the

poor.

organizing

trying to straighten
out, is a serious problem; and the
Congolese feel that their condi¬

means

down the slums of

houses

that

further

has- been

without

tions is

ef¬

will

very

Latin

however, which the

decline in new
home construc¬

renewal

of
are

few

self,

drance

;

do,

are

Another very sore spot is
Africa,
I visited
two
years
ago.
South Africa will blow

only natural to expect in

1961.

move

virtually

There

which

these

less

has

the agents of Castro.

building
greatly en¬

however,

for

situation

natural

become

especially troubled about

strikes

nition

five years, and by
various kinds.
Like

gradually

in¬
It is

area.

thing for the wage workers, they
give the Communists good ammu¬

new

was

stimulants,

urged

The

will

President.

most

ground and other seasonal
factors.

subsidies

sufficient

which

entitled,

growing

that

favorable

are

optimistic"
1961

told

conditions

the

for

America.
As these strikes
accomplish some¬

War II

couraged by loans to veterans
without any down payment, the
acceptance of 20-year mortgages
by banks in place of a maximum

debtedness,

forecast,

are

Asia,

but millions
Communists

great

population and higher incomes.
addition

head¬

way

The

building, especially
gradually rose to an
all-time high in 1959. Part of this

fective.

thermore

the

parts

Southeast

well.
It
"middle class."

have

homes,

other

very

that

seems

estate

the last to profit from
a
boom, and the last to suffer from
the following reaction. Readers all

should

slightly higher than
$11,300,000,000 net. I fur¬

note

Communists

the
Communists
are
working into Central and South
America. I know South America

years

making

Forecasts,
and

the

over

the

been

have

Nations.

and Russia.
We may expect continued
revolts
in South
Vietnam, Cambodia and
Laos.

Building and Real Estate

duction in farm prices.
Therefore,
]°61
cash
receipts
for
farmers

better work, not ask for
increases,
and dOfeverything possible to hold

may

making

growth has been due to increased

attention

certain

farmers.

I, therefore, look for a
reasonably heavy volume of the
things farmers buy during 1961,
including equipment for getting

Khrushchev; Ken¬

should

which

way

loop¬

some

bond

Therefore, I believe that

will

increase

know that from its World
low point new

Prices

Mr.

Readers

will

Good crops and moderate
prices
indicate a fair year in 1961 for

mar¬

the

and

building

from

year

with

the United

taxes.

be just as sound

This

market.

holes

Annual

frost

good -bonds

cases

talk

nedy has already stated that he
is willing to
put Formosa under

increase income taxes
during
may

nedy is agreeable to a Summit
Conference as he is itching for a

ex¬

stance, is a very rich
envied by both China

but

ac¬

add that Mr. Ken¬

world.

not

well

are

President Kennedy.
The
Federal
government

the
dollar.
Barring World War
III,.I believe that the dollar will
a

Russia

readers

improved working conditions; but
this may not be what labor ex¬
pected to get from the election of

plurality, Mr. Kennedy
slow to do anything
the purchasing power of

hurt

comment

however, must

cess

very

-•
Leading .high (427.3) cost of living;.
-"light-to-work" legislation which
As there is only so much land
selling 25%
has been passed in certain con¬

gold .stocks g.t this" time:
gold stocks

ket

for
will not

in England, France, Switzerland,
Germany
and
other
important
countries. I .advise investors now
to forget this

should

loans

than good stocks.
unfavorable to the stock

whatever else

be followed by similar

small

profit.

arm

Not only
withdraw
gold before such legislation was
passed;
but if such
legislation
should pass in the U. S. it would
the

causing

would

yield

readers'

year.

fifth

many

readers

unable to

costs.

own

will

prices down.
profits will

their

1961

with

not

are

their sails.'-,

present

This means that their

assum¬

another

that

showing

are

who

reduce

are

least

readers

many

businesses

wise

retailers

and

selling

their

keep

the increased

all- lines,

be¬

during1961.

facturer.; Owing to
manufacturers

rise

not

last

Therefore, I feel

Those

in¬

most

price advances
by the manu¬

absorbed

competition

less

prices will

inflation

cause

wholesale

but

probably

are

consumers

I cannot honestly agree with

year.

for

•'

that

•

Industrial

recommendations in his inaugural
address to "save face," but most
of

Ca¬

making these forecasts, last

tion.

influence

Republicans

He may

the

keep them

down

This

readers

been

new

much

the

gold
re¬

position in

December

Certainly he

Conservative

the

our

very

behavior.

good

will

think

stocks

Most of the newspapers

forecasts.

Nixon in the total popu¬

vote,

when

now

unpopular for

Forecast.

plurality in the electoral col¬
lege and only a small fraction of
over

bearish

nar¬

row

Stocks and Bonds

big changes

Kennedy.
If he
landslide I would

will

the price of gold rises.

that

President

under

that in¬

from

shut

costs.
off

come

ruling against

quainted with conditions there.

mem¬

vote

are

subsidy

ular

Canadian

government to

being

labor

ject will be the political outlook.

gold

companies

nadian

thoughts on general
Naturally, my first sub¬

Politics and the

Canadian

court decisions

1961;

remember

number

mining
ceiving

topic, I am sure that a reading of
the following will give a clear
business.

should

buying

separate

price

Another thing

ago.

vestors

their

although
unemployment
up

means

will

pay

Inflation

above

year

the,, following
eight
Instead
of
covering

by
headings.
general

fore¬
indi¬

hold

during 1961.
This year I have

families.

radical change.

any

will

containers.

expect by way of legislation during 1961, the financial writer

may

partly cooked and purchasable in

Wages

from union

temper the recent

ing 1961 and secure some small
increases in wages, pensions and

vegetables

hopes we will pursue dollar devaluation; offers advice on the
type of securities to hold; believes we need not fear inflation during
1961; expects labor will not get all it expects to from the election of
President Kennedy; doubts 1961 will be a
good year for real estate;

may

Ultimately
wholly or

package

all

and

dues

bers, but

"mixes."

look and the

He very much doubts

to collect

housewives

pendence of

Industrial Averages.

need

China,

Congress will not compel industry

many

eightfold forecast of the financial and world trend of events
for the coming year, Mr. Babson is bearish about the
economic out¬
Dow-Jones

states,, nor will labor get
revision of the Taft-Hartlev Act

union spending.
All the above means that labor
will be able to hold its own dur¬

cost of food to increase is the de¬
his

servative

Ill

•

'•

'■

Broadway, New York. 6, N.Y. COrtlandt

5680

The Commercial and Financial Chronicle

(2674)

sale

Captive Sales Financing—
A Threat to Free Enterprise

retail

and

of the Committee

and Chairman

(D.—N.Y.)

States Congress
the Judiciary

sorted to cancellation

whole

finance companies are

own

the economy

practices

suffers. The Congressman cites developments,

American

community will be

and consequences

have

come

long way

taken.

since

in 1907, when a new car
cost the equivalent of three years'
earnings of an average worker. In
the days,

dealers,

unable

acquiring financing associates
own. Independent fianace
companies normally discount
dealers' installment paper without

too,

Factory affiliated sales
finance; companies,
by contrast,
recourse.

were

willing to lend
money

for the

purchase

Car

cars.

ownership was

privilege
the wealthy.

the

of
It

Emanuel Celler

the

was

independent
finance
companies
this

lending

gap.

bridged

that

money

of cars
the factory and by purchas¬

dealers for their purchase
from

ing from dealers at a discount the
installment
obligations incurred

the

by car buyers, they brought
automobile within the reach

this

reserve

the

over

years

GMAC dis¬

tributions to dealers from this re¬

production. These have remained

car

sales finance com¬

that this

always exceeded losses by a
wide margin and has hus become
an
added source of dealer profit.

repossessed. This is extremely

useful to General Motors in hold¬

today ing dealers, although, as A. P.
credit out¬ Sloan, President of GM, himself
admitted, any appreciable excess
standing for financing the sale of
over
actual repossessed losses is
automobiles exceeds $16 billion.
unfair to competing finance com¬
There are forces at work in our

panies over the years, and
total

consumer

which, left unchecked,
by destroying a vital
segment of the American financial
community for which your Con¬
economy

end

must

ference

speaks.

toward con¬
centration of the manufacturing
and banking functions in the auto¬
mobile industry — a drive long
I refer to the drive

but most difficult to
control. I refer to the practice of
General Motors since 1919—only

recognized,

this

year

automobile

taining

Ford—of

resumed

main¬

manufacturers

their

own

sales

captive

finance companies.

panies. With the approach of the
depression, manufacturers tended
to force

practice, I am convinced, is
only disastrous to the inde¬

pendent sales financing industry,
but spells trouble for many other
economic
groups
and
for
the
entire competitive system. It is
destined, unless checked to impair
competition
in
the
automobile
manufacturing industry, competi¬
tion which is already at a low ebb,
with only five significant manu¬
facturers of passenger cars in the
the

must

condition

further

depress

ostensibly

inde¬

dealers to one of

pendent retail

economic serfdom and ever-grow¬

ing dependency on the factories.
It subjects the consumer to manip¬
ulation by concealed but fluctuat¬

ing

credit

where

the

charges,

less

ever

point

able

determine how much he is paying
for

credit

and

whether

can

afford the obligations he assumes.
It is, in short, a practice whose
indulgence makes big business the

foe of economic freedom.

Reviews History of Captive
Control

cars

to dealers.

move these cars, dealers were
forced to grant excessive used car

trade-ins. In
their

losses

attempt to recoup

they frequently re¬
loading or "packing"
their finance charges to consumers,

sorted

that is.

increasing this charge be¬

yond the actual cost of financing,

including

the

reserve

for

losses.

independent

some

non-recourse

companies attempted to meet the
competition of GMAC's dealer re¬
for

by paying a bonus to dealers
their business.
Reputable in¬

dependents,
both the

however,

regarded

repossession loss

the

and

bonus

reserve

of "com¬

forms

Finance

In the 1930s, also, the financing
practices of automobile manufac¬

cause

concern

among law enforcement agencies.
In 1939, the Federal Trade Com¬

mission ordered General Motors to
and

desist from

advertising
plan of financ¬

"6%

plan" a
ing that actually cost almost twice
a

that

sum

in simple interest.

Ford,
manufactur¬

Chrysler, and other
ers, had agreed to cease and desist
from

this

against
held

practice, and the order
Motors, was up¬
appeal.

General

Meanwhile, automobile manu¬
facturers'
practices affecting fi¬
nance'companies and car dealers
engaged the attention of the De¬
partment of Justice. In 1938 anti¬
their
financing affiliates, charging coer¬

cion of dealers at both the whole¬

history.

1919

of its

undisturbed

however,

General

trust

indictments

against

the

Big

were

Three

In this

claim¬

of the

domination

manufacturing

well

known.

Three

General Motors,

General

alone

Motors

accounts for about 50% of all new

In this dominated mar¬

sales.

car

environment, the business of

GMAC—that of financing General
Motors' products—has had
tinuous

growth.

1958

GMAC

80%

illustrate: in

financed

all

new

con¬

than

installment

car

It purchased

the

installment
dealers

all
in

1957

less

than

30%

companies
GMAC's

1952.

retail

credit

extensions

were

106%

those

of independents

1957

greater than in

1952;

only 16.6%

greater.

In the period from 1953
to 1956, the percentage growth of
GMAC's share of the car financing
market was 41.7, or almost double
the

21.7

Motors'

increase

GMAC's

brought

total

steady

sales.

car

obtained

and

has

growth

phenomenal

General Motors.

General

profits

During the years

from 1950 to 1957 GMAC averaged

18.7%

profit

net

after

assets

its

average

exceeded

net

ihcome
1957

taxes

This

lion.

Motors
amounted
of Ford's

income
from

billion

$2V2

than

$33

but

finally,
finance

ranging

be¬

of its capital

"packing"

sources—the dealers'

of
these

charges. 1 Two

and

reserve

the repair and parts business—are

the

by this leverage, GMAC
also to have been able
to borrow money at interest rate'

possession indicates that the
newly formed Ford financing af¬
filiate similarly enables its dealers
to exact excessive financing

lower than those

charges and thus to augment their

given

appears

paid by the sales
generally. Little
GMAC's net profit-

immediate

entrenched

that

far

have

exceeded

the

The

unparalleled financial posi^
GMAC, due in large part
its ownership by General

market

the

General Motors'

ness

of GM dealers, is almost auto¬

matically directed to it...*
The

advantages

these

ar¬

also

rangements to the parent General

terms

Motors

but

the most atractive

offer

fact that

in the

cfpes not p,eed to make expendi¬
tures, to acquire, business. Busi¬

Motors, has not only enabled it to
saturate

The peculiarly
position
of
GMAC,

profit.

industry's however, lies

average.

tion

Information in my

discount.

finance industry

dealers.

At both

the wholesale and the retail level

Corporation

are

manifest.

Through its captive finance com¬

GM is enabled to maintain
independent but actu¬
are measurably less than those of
ally captive sales organizations of
its competitors. But this does not General Motors' dealers. It retains
necessarily reflect efficiency. In the capacity to manipulate car
interest

its

first

and

discount

charge^

GMAC requires
responsible for

place,

remain

pany,

ostensibly

sales

credit

sales

policies.

aspect

These

its

advantages

and to
share in the necessarily increase its dominance
evaluating credit in the industry, give it an inesti¬
independents assume mable advtantage over its com¬
entire
credit
responsibility petitors, and inevitably lead to
f unctio n.
Beyond
this. monopoly.
As GMAC itself has

while
the
and

most

GMAC's

low

rates

consequence

are

the

natural

unparalleled

declared: "It must be obvious that

the parent corporation can

leverage
and uniquely favored
credit position enjoyed by GMAC
through its affiliation with Gen¬

eral

hardly
capital
corporation designed prima¬

Motors.

stated

Indeed, it has been
General

that

GMAC,

through

could

Motors,

still

fur¬

ther reduce the cost of credit anJ

justify
a

investment

its

rily

as a competitive discounting
financing agency, fundamen¬
tally designed as an independent

aid

distribution

and

sales."

GMAC

is, and has always been,
further extend its domination of an instrument of General Motors
the market, but is deterred by the factory sales policy.
fear that this would destroy the
Against this background of sub¬
,

existing

oligopoly

manufacturers.,:

among

V./

car

;

stantial
to

may

The

monopolistic advantages of
GMAC in competition with inde¬
pendent

salps

monopolistic

GMAC

and

advantages

General

Motors,

which arise from their affiliation,

Rewards and Punishment

viewed

the, injury

and

competitive disadvantage suffered
by other elements of the automo¬

finance

companies tive and financing industries and
plentiful available by the economy as a whole.
profitability, and low Manufacturers, unable to compete

$46 mil¬

risk capital,

General

alone,
one-half

earnings from all

opera¬

rates.

invaluable

additional

with the

glitter of the five sepa¬
profit pockets which GMAC

advantage that also arises out of

rate

its

ownership by General Motors

affords

GMAC's

favored

position

its
dealers,
must
ulti¬
mately suffer impairment of what

acquiring business.

tions.
But

of income: the retail

sources

do, not end with

GMAC

rate

mark-up in price of the car; the
dealer
reserve
for
repossession

1958

debt

reported

Motors'

Apart from the financial power

cur¬

exceeded

net income after taxes of

General

Dealers

ers.

products typically enjoy five sepa¬

and

1953

investment.

GMAC

too,

purchases the installment contract

function

1958—as compared to

and

rewards,

played a large part in pro¬
viding GMAC with a ready mar¬
ket among General Motors' deal¬

payments

sold

contracts

finance

and

Persuasion

have

turned to the dealer when GMAC

50% in

about

their

repair and parts business when an
insured car suffers damage; and,

GMAC

40%

compared to less than

1941.

results

coercive thrust.

other, finance
has had out¬

any

access

dealers

—

the

undo

less

loss; commission on car insurance;

between

•

the

companies

to
risk
capital
would have been impossible. ;

tage

dealers

finance

utterly

protect against these abuses, much

independents. In

surplus.

contracts sold by General Motors'
to

consent

this unnatural competitive advan¬

concerns,

Ford and Chrys¬
than 90% of the

ler, divide more
market.

automo¬

industry

failed

divestiture,

wonder

Growth of GMAC

The

than it

The

strength of deferred in nature and thus serve
which op¬ to deter dealers from switching to
erates like capital as a cushion for other makes of car on; pain of
senior debt, GMAC has been able losing these profit elements. Load¬
iter achieve a total debt-to-com- ing or packing, tolerated if not
mon-equity ratio in excess of 2€ expressly recommended by GMAC,
to 1—more than double the ratio is the practice of adding a financ¬
enjoyed by its three largest com¬ ing charge over what the dealer
petitors. Without GM ownership, pays which is immediately re¬
and

has

sales financing,

car

deterrent

this subordinated debt,

reentered the field of factory-con¬

trolled

prime

of this privilege, not

company,

captive financng subsidiary.

Recently,

million.

dependents.

available

G e n e r a 1
possession

with

rested,
in

Motors

and

Adequate appraisal of the con¬
sequence of factory-controlled car
financing requires a brief review
its

matter

rent

cease

of most

tween 129 and 166%

the

began

for

owner

subordinated

Conference

was formed to protect
legitimate interest of the in¬

its

remains

ble that

proving activi¬
old. As is often
the case, time had come to the
rescue
of monopoly.
There the

By 1954, the company's total

turers

decree of

issue if separated from Gen¬

of the difficulty of

stockholders

American

its

competitors.

ties then 14 years

ing

NRA,

much

standing

mercial bribery," and in 1933, dur¬

the

than its

profit

still

eral Motors. This privilege is dou¬

this

1952

case.

the

1952, lacking provisions

and

serve

This

market.

delivery of

not

the

valuable General Motors franchise

defectors.

but to which it submitted because

have equaled $3,000 for each
ket

serve

the

GMAC

loss

has,, been

investment

may

with

Risk

exclusively.

would-be

capital ratio

consequence

bile

has

the miraculous

the functions of

World

of GMAC.

can

litigatidn was settled without di¬
vestiture, a result which the gov¬
ernment recognized as inadequate,

by which
exceeds losses actually

is notorious

large

bring

tices

much smaller net return

Motors

civil suit to require GM

divest itself

amount

the

experienced.

of Indeed,

people and thus made possible
economies of mass

the

the- government

retain

Docketing

with

company

volume

own

independent

dealer responsi¬ ing that it no longer can do with¬
out the advantages which GMAC
bility in case of default. In 1925,
affords General Motors.
Thus, in
to tighten its control of the fi¬
nancing of GM products, GMAC 1960, the independent sales- fi¬
nance
companies are confronted
inaugurated a dealer reserve for
repossession
losses.
Under
this with a well entrenched competitor,
techinique, the dealer imposes a owned by the largest automobile
charge on the customer to defray manufacturer in the-world; and
the cost of defaults. He also par¬ by a newly founded finance com¬
ticipates in the financing profit by pany owned by the second largest.
normally

un¬

suit

required cash;
banks

followed

Chrysler

and

levels.

retail

and

wholesale

of their

credit;

General Motors
Acceptance Corporation, to finance
the sale of GM products at both
Ford

sell

means

wholly-

uncooperative

apeal,

cution

owned subsidiary,

the

those days, car

manufacturers
lacked the

established

borrowings

War II interfered with the prose¬

Motors

greater will

of subordinated debt while General

destroyed unless corrective measures
are

the

started

which, he says, support his contention that the
free enterprise system and a vital segment of the American

financial

tal.

discriminatory

and

business

compete and

held

exist in the face of captive

competing manufacturers without their
at a competitive disadvantage, and that

financing competition, that

would

be the profits on its common capi¬

against

its dealers in line
principles so that they

borrowings - to - capital ratio, or
"leverage" as it is called, GMAC's
parentage has given it an unequaled position. Major insurance
General Motors and four affiliates -companies and institutions have
had been convicted of conspiracy entered into an agreement allow¬
and their convictions and fines up¬ ing GMAC to issue one-half more

particular target is the General Motors Acceptance Corporation
the recently resumed Ford affiliate. He argues that an inde¬

pendent sales financing industry cannot

and

with these

finance
companies. Here again Ford and
Chrysler
submitted
to
consent
decrees, but General Motors in¬
sisted on a trial; In 1940, after,

Congressman Cetler plans to reintroduce in the next Congress his
bill which would divest manufacturers from their financing affiliates.

and

using its own
capital—the greater Is the ability

threat of

franchises

catalog

dealers

His

Thursday, December 29, 1960

ness—in addition to

con¬

tq„. .ivonoftolize financing.
It was
alleged that in order to
compel dealers to use captive fi¬
nancing,
the manufacturers re¬

practices

spiracy

cancellation

By Hon. Emanuel Celler,* Representative, United

levels, in

profit,

one

however
the

great

large,

unnatural

advantages which General Motors'
ownership
of GMAC
gives the

is left of their share of the market

Motors

To a General
dealer, the factory is the

must, like Ford, resort to simi¬
expedients. Dealers tend more
more
to
become
economic

source

of supply on which he de¬

lar

pends

for

and

GMAC's

survival

it i

and

growth.
General

and
of the
nancing time sales is very clear factory. The economy, as a whole,
business and in the automobile
to; him. His response of this pref¬ faces
the monopolization of its
business.
Comoarison of tve cp-;
erence
has
been
firmly condi¬ largest industry.- Independent fi¬
erations of GMAC with those of
tioned by an elaborate system of nance
companies are forced more
independent sales finance compa¬
rewards and punishments which and more to abandon automobile
nies
reveals
the
important re¬
had
their
origin in 1925, when time sales financing. When this
spects, not explainable by size
General Motors adopted the prin¬ happens, the economy as a whole
alone, in which this financial giant
ciple that the factory should con¬ will be at the mercy of the manu¬
enjoys special privileges, largely
trol the dealers' wholesale and re¬
facturing oligopoly — more in¬
by virtue of its GM parentage. ,
tail financing practices and' that terested in sales and
profits than
Larger Subordinated Debt and
GMAC should share financing in¬ in the safety of credit extensions.
come
with the dealer.
Leverage
From the A - recent
story in the
Chicago
The more borrowed money a beginning, as I have
noted, General papers dealing with the credit
finance company uses in its busi¬ Motors resorted to coercive
dilemma of J. I. Case, a great farm
prac¬
combination—both in the finance

Motors'

p o s

o n

chosen instrument for fi¬

serfs,

totally

responsive

dependent

the

dictates

192

Volume

machinery

•

Number 6016

the
the

manufacturer

sales

through

The Commercial and Financial Chronicle

manufacturer,
illus¬
danger of overloading

when

trates

its '

(2675)

nomic conditions in their member

finances

For the Free World

to avert disaster.
,

By Paul Einzig *

At the Crossroad

time

The

has

come

Dr.

realize

impossible.'for-'-the'-time'
sales financing industry to survive
part free and; part slave.. We are
at

crossroad.

will' produce

One

comes

declares

with

diagnosis of business recovery in 1961. He
delaying tactics by "prophets of gloom" can

amount of

oli¬

Dr.

the

likely increase in East-West trade. He views the

narrow¬

financing affiliate, and the inde¬
ness of our election as assuring a sufficiently moderate economic
pendents .are driven out of the
course capable of preventing'either a dollar or a sterling crisis;
industry altogether.
The
other
envisages, the elimination of cap¬
Prophets * of influences making; for more pro¬
tive financing and the restriction LONDON, Eng.
gloom an despondency have been duction and consumption.
of automobile manufacturers to
If the. return of confidence in
working overtime . in recent
the business of making and
selling months,
predicting an economic the dollar assumed a spectacular,
cars.
Under this alternative
-

the

contribution1 of

independent fi¬
companies whose interest
safety of investments as
well as profits will be restored to
nance

is in the

the

industry. GMAC and the Ford
subsidiary would be¬
independent — their re¬

financing
come

made

sources

dealers

products

available

and

all

the

financing of
and resurgent

new

manufacturers.

The second is the

only

alternative consistent with
our
antitrust policies and tradi¬
tions. In the 86th Congress I in¬
troduced

4256,

bill to
prevent manufacturers of motor
vehicles from financing or insur¬
ing the sales of their products.
Similar

bills

introduced

were

the Senate.
In

the

coming Congress it is
legislation of this

essential

that

kind be pressed to an early enact¬
ment. At the opening of the new

seision I shall reintroduce

mybill.

Existing'antitrust 141'aw sjAhave
proved thefhgeiv^^ Whblly1 inade¬
quate to cope with this problem.
Congress must act.
Prompt di¬
vestiture by ^General Motors and
Ford of their finance subsidiaries

and prohibition of the institution
of similar arrangements by other
manufacturers are, I am con¬

car

vinced, of first priority if we are
to preserve free enterprise com¬
petition in this great industry.
*

by Mr. Celler before the
American Finance Confer¬

address

27th

Annual

ence,

Chicago, 111.,

Lee Higginson

Appointments
Higginson
Corporation, 20
Broad Street, New York^city, an¬
nounced the election of nine new

Lee

main offices of

its

executives

New York,
John
S.

Chicago and Boston.
Barker, William L.

Trenholm and Winslow G. Tuttle,
all

and Donald C.
Chicago, have been

New York,

McCotter,
elected

Vice-Presidents.

Charles

II,

Cox,

David

Haight, Leslie G. Schoenhart, Jr.,
and Alan T. Unger, all of New

Parent,
Boston, have been elected Assist¬
and Frederick W,

York,

Vice-Presidents.

ant

investment

The

banking

members of the New York

Exchange, was founded in

firm,
Stock

1848.

"Decline of the West" in the

future.

They

near

have

Republican victory—

London.

Had there been

will

slide- in

favor

L could

world

the

not

drawals

American

of the

funds
a

land¬

Democrats,

that

Co.,

Wall

announced the

wholly

incorporation of a

owned
affiliate; G. H.
Incorporated, which

Walker & Co.
will
of

securities.
It

was

also announced

corporation: Al¬

Presidents of the
fred

V..

Pierce,
Schumacher, John H.
.Scott

Morin,

Joachim A.

Swan, all of New York

City, and

Malcolm

Farmer,

idence, R. tw

■

Jr.
,

' !

Prov¬
I.

Jjt>

company
-

some

of the recent

come

later

measure

Judging by the .out¬

year.

change.

Moscow

con¬

the floor of the Ex¬
has

been

since

1949,

Mr.

arid

member

of the. New York Stock

has

Exchange

acted

Zimmermann

will

of the new organization.

with Cowen &

Company,

the

also

the

will

munist

distant future

disturbing

mean

the

Com-,

economic offenses, but in

son

been

Mr.

the. turn

its

economic

posi¬
expanding its

associated

rapacity
He has

with

Zimmerman

strengthening

means

similar

Thom¬

great

nephew of the late Leopold Zim¬
mermann

by.

McKinnon.

the coming year the Soviet Union1
is more likely to concentrate on
tion

He form¬

towards

charge of the research department
erly served in

Communist bloc

the floor for the past

economics; Will
over¬
shadow politics in the attitude of
.

who

founded

of Zimmermann &

the

firm

Forshay before

century.

One of

leading investment and bank¬

Jesup & Lamont

Admit Isleib

Miller, Newman,

business it would affect the trend

absence

acute

pressure

continents the pound the British authorities
in a similar sense both through may be able to lower the bank
further, though from this
its material effect and through its rate
point of view the slight revival
psychological effect.
of the rising trend, in the cost of
There is a widespread belief
that the. Kennedy Administration living has to be borne in mind.
In Western Europe as a whole
could only achieve such a result
this year 1961 is likely to be one
by taking the line of least resis¬
of
prosperity. The only major
tance in respect of the dollar. An
clouds on the continental horizon
increase of the official American
are the Algerian situation and the
buying price of gold, especially if
West Berlin situation. Either of
it is substantial, would let loose
these
factors
might- produce a
a wave of inflationary
optimism
disturbing political de¬
throughout the free World, ef¬ highly
in Europe and on other

Zimmermann & Co;
Formation

Miller,

Zimmermann

Co.,

member

the

Newman',
Inc. as a

firm

New

stitutional sales.
he

was" the

Investment

For many years

Associate

Treasurer,

Officer and

Assistant

York

Secretary of Yale University and
Exchange has been an¬
nounced by Irwin i Miller, Presi¬ for the past two years has been a
dent. The firm, with offices at 39 partner of Buckner & Co. of this
Broad Street, New York City, will
city.
■! "
conduct a general brokerage busi¬
Stock

ness.

Charles M. Newman is Vice-

President

and

e c re

tar y

and

George O. Zimmermann is VicePresident and Treasurer. :
Mr. Miller at 26

believed to

fecting the volume of production velopment in Western Europe, be the youngest President of a cor¬
and consumption and the trend with
grave
economic repercus¬ poration with membership on the
of prices both of goods and of
sions. Politics apart, however, the New York Stock Exchange. He is
equities. There are widespread
a
grandson of the late Israel
fears that the defense of the dol¬ progress of integration within the

W. E. Hutton & Co.
To Admit Partner
LEXINGTON, Ky,
Hart

Hagin will

partnership! in
Cd. Mr.

—

On Jan.

admitted

Hutton

its

new

cuts

cooperation

degree
of

present

drastic

Administration

with

its

the
task

;

of these securities.: The offering is made only by the- Offering Circular,-*

maintaining confidence in the

dollar.

Ad¬

judging
American

the: upswing
it

exports

seems

recent popular diagnosis,
,

100,000 Shares

that

accord¬

ing to which American industries
have

Outpriced "themselves

from
market, -have
been
American
exports
can

Heldor Electronics

world

the

wrong.

Mfg. Corp.

than hold their own. A cur¬
tailment
of
American
external

mercial

that the

Financial

and

cost

COMMON STOCK

(Par Value 10c per

abroad

should
of

financed : by

external

long-term

Price:

$3.00

balance
payments and the wave of dis¬

loans, .would
of

Share)"

Chronicle

of American troops

means

restore the

per

trust in the dollar would come to
an

end.

Business

Upswing

Here

copy

of the Offering Circular may he obtained from the undersigned only in states in

signed is qualified as a dealet in securities and in which the Offering

which the under¬

Circular may be legally distributed.

is out
nothing

Once the dollar problem

of the way there will.be
to

prevent a revival of business

in the United States. Even in. the
absence

unduly

drastic

S.Schramm

New
.

policies on the part of the
it is certain
to follow an expansionary policy
that would revive the post-war
Deal
new

Administration

-in

8ccombxxy

INCnHPOHATEn

BXCHAHB& FLACE

NEW YQH1C

S, N.Y.*.

5
to
&

Hagin is manager of the

parity would two trading groups is likely to Miller, founder of I. Miller & firm's Lexington office
public and have a, beneficial effect on eco¬ Sons, leading manufacturer and West Short Street.
private expenditure leading to a.
deflationary spiral. There is no
reason why this should be so, pro¬
This announcement is neither an offer to sell nor a solicitation of ah offer to buy any
vided that there is an adequate
lar

mean

that the

Vice-

raw

—

Predicts

following have been elected

in the underwriting

engage

investment

For G. H. Walker
Walker

di¬

the December; 1 issue of the Com¬

Miller, former Treasurer and

1961 will* witness

Spending, together with the adop¬
tion of the suggestion I made in

Street, New York City, members
of the New York Stoek Exchange,

of women's high fashion
son of the late Irving

trade
with
the
non-communist ing houses specializing in foreign
firmly the anticipation of aggressive New
securities and foreign exchange,
Deal policies would have resulted world.
Allowing for various- conflict¬ the firm continued in business un¬
a noteworthy revival of business; in a-sweeping dollar crisis. Owing
til the retirement of the late Al¬
activity throughout the Western to the exceptional narrowness of ing considerations, it seems rea¬
sonable to hope that there will be fred
Zimmermann, father of
world. While the boom-like con¬ Senator Kennedy's majority, the
a
revival of post-war prosperity George O. Zimmermann.
ditions of a year or two ago may assumption that counsel of mod¬
throughout
1961.
Whether
the
not
Miller, Newman, Zimmermann
perhaps
return
next
year eration will prevail has resulted
there will be not doubt a suf-. in the anticipation that there need change will occur soon after the &
Co;, Inc., will clear through
turn of the year or later depends
ficient degree of recovery to re¬ not be, after all, either a sterling
Joseph Walker & Sons.
largely on our attitude towards n-.
store the belief thht the business crisis or a dollar crisis.
Prophets of glcom will be unable
cycle of the pre-war type is a
to prevent a recovery, but they
Britain Faces Prosperity and
matter of the past
could delay it by interfering with
Problems
Of course much will depend on
the
psychological factor repre¬
Even
in
the
absence
of
an
the policies to be adopted by the
sented by the traditional optimism
new
Administration.
Business acute run on the pound, Britain
that accompanies the change from
trend in the United States is still has many major economic worries
Jesup & Lamont, 26 Broadway,
one year to another.
by far the most important single to face in the coming year. Judg¬
New York City, members of the
factor in the economic, situation ing by the- expanding trend
of
New York"'Stock Exchange, have
c a p i f a 1
investment programs,
announced the admission of Hor¬
pf'. the free world. If the change
; ace F. Isleib as
of regime in Washington should however; it is likely to be a
|a general partner,
be
followed
by an upturn
of reasonably prosperous year. In the
Mr. Isleib Will be in charge of in¬
share their defeatism. I

convinced

Corp. Affiliate
G,

ference,

this

to. subside in
in the

if. would have entailed a sterling
crisis as a result of sudden with¬

the /volume of East-West trade,
specialist oft
Notwithstanding the Berlin prob¬ six
years.
lem,' political cold war is likely

West.

case ;

character—as it would have done

maintained,
has spent
its. force and Will be followed by
a
period of fairly advanced re¬
cession.' With the worst possible
tr at the postrwar boom

* '

■

It seems probable that the year
1961 will witness an; increase in

revival of post-war prosperity.
Einzig comments ort the good1 and: the bad straws-in-the-wind,

and

material producing countries.

tible of solution, We too can expect a

gopoly in which each manufac¬
turer is forced to maintain its own

■.

material export¬
of the four con¬

raw

ing countries
rector of I. Miller.
tinents, they stand to benefit by
Formerly associated with
the "resumption of upward trend
Cowen & Company and D. H.
in the major industrial countries.
Blair
&
Company, Mr. Miller
Once more they will be able to
holds degrees from Yale Univer¬
afford to import the manufactures
sity and the Columbia School of
of the latter/ especially if a re¬
Business Administration.
;
vival of optimism should- lead a
Mr. Newman will represent the
revival

prevent this from occurring next
year. Once our dollar balance of
payments problem is out of the Way, which Dr. Einzig finds suscep¬

alternative

automobile

Einzig takes the pulse of the free world's principaleconomies

and

that it is

shoes, and

As for the

finance

own

company.
Ninety-one banks, had
to agree to a standstill agreement

retailer

countries.

267

(2676)

The Commercial and Financial Chronicle

the

Latin America in 1960

new Inter-American Bank, Dr.
the growing pains, problems, inherent vitality and
to date marking the path of the 20
people's struggle

sums

successes

toward
be

economic

emerging

and

social

betterment.

potentially

one

Latin

America

is
new

areas

and ability to

meet its needs which

institutions, to improve

distribution

make

and

guistic

threatens

common

and

cultural

ef¬

but

will

fective, and to break the vicious circle of exports and foreign credit,

fits

neither of which can

export-capital

economist's

American

South

increase without the other.

portrayal of the

The

distinguished

basic

undercurrents

For

first during my

years,

many

today

President of the InterDevelopment Bank, I

American
have

had

work

National

influential

1952

is concerned.

America
If

Latin

with

trade

where

1960"

America

"Latin

should

seem

ground
than
that
normally associated with interna¬
cover

tional

which

factors

is because the

banking,

the destiny
of the 20 Latin America republics
in

merit,

govern

their

all

Hemisphere.

With

have

become

concerned

deeply

events

These

America.

may

geographically localized, but they
have
great significance for the
hemisphere as a whole. Perhaps
we could find no better opportu¬
nity than the present one to ex¬
amine the close interdependence
the

between

political

America

Latin

social

and

its

and

economic and commercial life, on
national

international

and

levels.

the

happenings

"Latin America

1960":

6th—Cuba

January

some

reflect

which

visit

followed
of

Soviet

Mikoyan and
with

shortly

ex¬

Russia

the

Premier

Vice

barter agreement

involving

from

reelected

October

Ibarra
of

be¬

Ecuador,

elected

Presi¬

President of

26th

—

Brazil;
military-civil

ousts Salvadorean President

Jose Maria Lemus

from office.

Entirely Negative

events

hardly

unmixed

but

portray

tranquility

first

of the Inter-American De¬

terminates

its

meeting with election of the
executive

bank's

directors

and

officers;
February 23rd to March 3rd
President Eisenhower tours

demonstration

terest" in Latin

April 5th
Alberto

lombia
He tells

that
is

Lleras

his

"deep in¬
America;

12th

visits

—

President

Camargo

the

United

Co¬

States.

joint session of Congress
"strictly banking approach"
a

insufficient

stimulate

Latin

American

development, and that
it
will
be
impossible to attain
economic and social stability as

long

erratic fluctuations in

materials

prices

are

raw

allowed

persist;

July 8th—President Eisenhower
announces

dollar

his

five

hundred

"Program

The

Inter-American

Develop¬

honor

preside,

but

another

integration.

The bank is

rapidly

becoming a financial
agency in which Latin Americans
be

can

nity

represented

the

commu¬

United

States

and

financial

European

where they

events,

balance

sheet

national
We

worlds, and
learn to evaluate

can

this

tnat

multi¬

Latin

America,

may

all

meet

prove

fi¬

the

nancing that might be asked or
us, but we view our organization
which

one

itself

can

usefully

other

with

asso¬

sources

would

America.

to the basic

ance

concepts of the West¬

World

More
and

than

undercurrents
"Latin

nomic

which

America
trend

un¬

specifically, they point to
explained by certain basic

are

other

any

area.

characterize

1960."

integration;

These

the

propose

technical

assist¬

planning of

America.
Needless to say, we shall be as¬
sisting private enterprise as well
as

governments,

eco¬

statutes,

eco¬

are

and

policies

and

this

our

identical with those expressed

the National Foreign Trade
Council, in its statement of Sept.

29,

the

unbalance

growing
of

means

lation's

ideals

that/

meeting

needs

and

between

population
and,

that

and

popu¬

finally,

mil¬

Social

1959. We, too, are interested
primarily in financing only those
projects which are economically
sound

democratic

will

our

and

ment

institutions

which

will

contribute

well-organized

the

too,

are

develop¬

recipient
to

We,

themselves

ful

ting the operations of the ExportImport Bank and
International

peace¬

resolving their situa¬

tion.

Bank

Let

examine

these

under¬

terms

against

other

and

the

free

play of competition. Following a
long period of discussion and prep¬

velopment,

and

taken

toward

the

reduction

of customs barriers and other ob¬

tive

importance

action

mated.

cannot

this
be

collec¬

overesti¬

Argentina, Brazil, Chile,
Paraguay, Peru and

Mexico,

Uruguay — joined by their free
trade pact—account in themselves
for

80%

America,

of the

60%

and 50% of its

for

funds

available.

are

Our

statutes

special

needs

credit

past

its

worthiness

these

themselves

than

Development for Latin America,"

with
and

foreign
limit
their
In

have

the

found

vicious

This

were

Latin America has
income

drop

billion

dollars

years.

The

have

prices

depressed

American

the

over

last

five
for

accounted

tablished

circle:

19th

over

mil¬

being viewed

States, and only recently

the

Century,

and

abundance, ves-

institutions

alone

Moreover,

this

which

loss. I do not wish to burden

this

and

there

trade

situa-

factors

are.

from other

80%

with exact figures for every
commodity and area, but the ad-

paper

verse

effects

prices

have

country

these

almost every segment of

its

econ-

with

and

the

prices
lead
permanent disturbance.
basic

exports

amount

international

place

public

cess

re¬

hand, and

for

pxam„lp

America
its

1960" xpnease
the

best

f?™

foreign trade, by liberalexchange requirements and

izing

eliminating

diseriminatorv

» •

population, while the

in the

in tne

»'

warm and fertile

virtuaily untillea. ,In

%' 9*A® *P9Phla$iqnr s$ill

i settled. ,m
Q
mal times,
the br(^d
grasslands and rich forests of the

course

ha~

of farm

lands, while the

"Latin

unbalanced

dry and inhospitable Andean lgh-

tions

tinues

|Sicultureifconcentrated
culture is c ncentiatea

na-

complicatea by

"lest zone^aclfmanpoweflo
manpo-we;r to

highly-industrialized

distribution of pop-

is further

Mexico

private

trade

and

Brazil,

distribution of farm population on
the other.
The
central zone of

that

can

booming urban concentrations

vigorous and growing foras our best guarantee
of economic growth and the ability to buy what is required of
eign

uneven

ulatjon
the one

investment

Patagonia,

expanses

Colombia,
Ecuador,
Bolivia and Paraguay are

This

our

mind

borne

reaches

examples.

Money Alone Not the Answer
must

vast

Basin; of Chilean

Argentine

Peru>

can

Amazon

Venezuela,

still in their early stages, with our
dollar obligations to be met

the

equally

growing population,
development programs

weakening

uninhabited—the

our

better distribution of population,
than half of South America

—

With

apart

coffee, wool, lead, cocoa,
cotton, wheat, tin, quebracho and
beef, to cite but a few.
omy

America

breathing space, as in other underdeveloped areas, but rather of

every

of Latin America and

Latin

underdeveloped areas,
great problem is not one of

Qur

lagging

felt

been

set

nrac-

&™CXhS££^%eSs

South go uninhabited.
Another demographic complication in "Latin America in 1960"; is
southern half of South
the extremely high percentage of
traditionally
associated
with children under 15; These constimonetary instability and currency trite 40% of our population—that
restrictions, is creating a new en-, is,<75 million in all.
v •
other

and

means.

for

note,

vironment

interesting;

how the
America,

example,

for

trade

invest-

and

ment.

~'r

These countries have heeded the

oft-repeated
their

injunction

house

put

..order, frequently
despite unfavorable political conditions, and are continuing to do
with

great vigor and growing
support, even when this
involves temporary hard¬

public
ship.

•

This circumstance generates

Third,
tries

1960"

there
the

schools

growth is

truly dynamic factor in their

eco-

nomic
development, despite, at
times, adverse external conditions,
Of
these, the most outstanding
examples are Mexico and Brazil,
where exports

play

role in the gross
In

less decisive

national product,

part, this phenomenon

can

traced to the emergence of a new

and

vigorous entrepreneur class,
particularly in industry [and fi-

nance, but by far the most potent
contributing element is the existence

vocational

training

Housing, water supply, land re¬
education—these are prob-

coun¬

America

whose internal

and

centers.

several

are

"Latin

the

urgent and economically strengthening need to build more housing
and better public facilities;to
eliminate obsolete land-holding
practices which impede a better
distribution of population and a
better and cheaper food supply,
and to create more and better

domestic markets,
furnished by the 67 million Braample

lems which we must solve ourselves with our own internal efforts. But financial and technical
assistance, properly applied, can
speed us in the gigantic task, and
help eliminate obstacles to progress and create the conditions essential to well being.
Fourth, political and social conditions in the "Latin America of
I960" were the object of a greater
concern than ever in the United
States.
In times gone by, it was we who
felt the repercussions of events in
the United States, but we might

zilians

who constitute more than half the

has not been reversed

population

year or

on their
foreign credit make
impossible for them to increase

and

diversify their exports. The
only way to break this impasse in
certain

cases

permit

repay¬

ment in local currencies until the

involved

countries

can

carry

the

area

but

let

banker

that

not

takes

"soft

loans"

loans,"

with

for

"bad

not

are

loans."

requirements concerning the
validity and productivity of a
for

project
loans.

tional
to

will

this type of

nary

all

loan

Just

the

same

for ordi¬
Interna¬

Development Association is,
intents
than

Latin

examples

Mexicans

America.

self-contained

well ask ourselves if this situation

and

purposes,

independent

fund

in the past
two,, and whether it is not

events in Latin America that now

produce

reverberations

the

United States,

Self-Help Essential
We

Population Explosion

Our

given

million

integration for the smaller nations

into

forget that

"soft

synonymous

markets lies the greatest incentive
to industrialization and economic

Bad Loans

of so-called
us

these

and

of Latin America.

this

that

channels—to exploit such
tion for the best.
" -J ■'

past nine

years

the

materials

raw

than a

experience

Latin America has all the assets—

dol-

its

tions

basis

economy,

seen

the

was

United States and Europe during
the great upsurge of their popula-

know

sympathy
government
by
private
enterprise
in
the

United

the

inability to increase and
diversify their exports restricts
their foreign credit, and restric¬

$925,000,000.
are

meet

abroad.

countries

vs.

lion, a total area of 175,000 square
miles, and a yearly foreign trade
These efforts

Latin

our

lar

whose

Soft Loans

barrier

structures

population,

America is dramatically overcom¬
ing
the
artificial

assign $150,000,000
fund

countries

exchange

foreign trade.

population

equally

we Tare

by themselves.

all

Economic integration in Central

total

De¬

providing public funds
projects for
which
private

Latin

area

it is outstripping invest-

tions

stacles to free trade.
The

and

among
the participating
Their
countries, the first concrete steps
were

averse

for Reconstruction

averse

non-discrimination
areas

undercut¬

danger unless the Latin American
means

the way

countries.

countries

find

raw

our

process

the

1960"

motivation

materials—the

specific projects which offer the
greatest
promise
for
Latin

threat to

our

facilities

greater

toward

This

applying

America

for

enterprise, of whose billion
capitalization 60%
comes

dollar

ern

for

Bank

and

maintenance

collective.

recognize

lateral

show that Latin America is closer

developed

International

the undesirable effect of negative
terms of trade arising from the

jointly their most pressing needs,

ciate

the

manifestation of this drive toward

growing pains and
vitality of 20 peoples financing, public and private, as
a guide in
properly orienting and
struggling toward economic and
channeling public and private re¬
social
betterment.
Despite
the
negative aspects of some of these quests for financing from Latin

subsequently approved by Con¬
gress.
Two months later to the

geo-economic

inherent

separate five small natibns with

April 21st—Brasilia becomes the
capital of Brazil;

new

lion

of the broader

power

gration.

can

aration
—

Brazil,

Argentina, Chile and Uruguay
a

this

produced by economic inte¬

areas

them

currents one by one:

Bank

that

consequence

dynamic

insufficient

February 8th — Argentina, Bra¬
First, "Latin America in 1960"
zil, Chile, Mexico, Paraguay, Peru showed marked
progress toward
and Uruguay
enter into a free economic
integration
and
the
trade agreement.
The Governing establishment of
common markets,
velopment

and

from
Not

million

tons of sugar;

Board

purchasing

Subsequently,
orderly balloting,

Chiari is

is elected

These

Experi¬

demonstrated

economic

completely

President

world

nations.

inevitable

Latin

Bolivia

Velasco

recognition

begins

propriation of United States prop¬

erties,

all

dent of Panama, and Janio Quad-

coup

positive bene¬
industrialized and

highly

prices;
rapidly

1960

Maria

Francisco

ros

offer

nomic and social stability deriving
from
depressed
raw \ materials

Chronological Account of

Developments
Chronologically^ here are

equally

discern

ample cause, many of us

with the question mark posed by
events in some sectors of Latin

the

Jose

majority
elections.

and.rp£Ogresst,Q£„our West¬ stagnation,

mony

life

1956,

mani¬

many

festations, the attention of every
American whose goal is the har¬
ern

and

comes

remarks

orderly

which

ment Bank, over which I have the

President

decisive

least

and

August 6th—Victor Paz Estenssoro,

have been increasingly
impressed by the importance of
its accomplishments, and not the
I

pledge

economic

betterment

Foreign Trade Council. Over these
years,

nations

the

America;

the

reason

the

American

themselves
social

ties

lin^

of
the increased needs and increased

day, his proposal is complemented
by the Act of Bogota, wnereby 20
Latin

also

has

ence

portend what is at stake.,

governmental and banking career
in Chile, later as a Director of the
International Monetary Fund, and

historic,

bind the southern republics, will
bring positive benefits to the area,

internal conditions and income

foreign aid and investments

tions

Stressed is the need to rectify the imbalance between

population growth
democratic

the

Reconstruction

"Latin

growing economic integra¬
Latin America, a logical
outgrowth of the common aspira¬

in the world, and as an irreplaceable factor in the prosperity of our

hemisphere.

Develop¬

The

snown

tion

of the most promising

Government

including and going beyond the

Herrera

States

the Inter-American

Thursday, December 29, 1960

Development ments and facilities for meeting
ment Bank announced their sup¬ which
administers it, so too, in the its increased needs — we should
port of a new Central American Inter
American Development not forget that, combined with the
regional
organism
to
stimulate Bank, the special operations fund
proper utilization of natural republic and private economic in¬ is
sharply
senarated
from
the sources
and
an
adequate techtegration in that area.
ordinary capital which is our basic nological, cultural and sociological
lending resource.
environment, it cannot but create
Drive Toward Economic
Second, outstanding, too, in the a rapid economic development.
Integration

By Dr. Felipe Herrera,* President, Inter-American Development
Bank, Washington, D. C.
In

United

and

the

experi¬

our

can

favor

the

growth

economies. Latin America had
million

inhabitants

ginning of this
end of the

century.

Americans

the

light of this experience,

the so-called population
explosion
which Latin America is

encing

Latin

the

be¬

the

century, it is estimated

that
its
population will be 600
million double that of the United
States in the year 2000.

While this population explosion
has its negative

aspects—notably

growing

fact

that

and

even

infusions
ditions
Latin

our

ills

will

the

continue

worsen, despite massive
of dollars,
unless con¬

nurtured

are

American

conduce to
of

applaud

awareness

within

nations

the

which

broader environment

democracy, culture, social jus¬

tice and well
dent

that,
European

being.

It is

acci¬

general rule, those
and
Asiatic
countries

with the poorest tradition of free¬
dom and of free
expression were
the first to succumb to the totali-

Volume

192

Number

tarian systems offered as
for all their ills.
In

our

own

record

democratic

tion, education

The

Commercial\and

Financial Chronicle

(2677)

of business, and the
percentage of total loans to deposits
(57%) relative to other banks is hign. Unreported bank reserves
are significant.

The

STOCKS

evolu¬

and distribution of

LEO I.

BTJ

bank's

1960 represent

national wealth

generally provide

Deposits

the

tor

stock

best

milieu

economic

de¬

velopment, foreign investment

and
free financial and commercial
ex^
■...

The recently approved Act of
Bogota; which embodies in sub¬

Program

the

...

which alone should
to

fit to

seen

instrument

jective, to
the

attaining

serve

this

their

utilization

resources.

their principal

the

This is the

cash dividend from

ob¬

Although

trustee

Chase

means

of permitting the Latin American
in what

these

shall

collectively
for

used

exceed

Conclusion
up,

point to

may

(1)

1960

definite

pos¬

market

and

price

beset it. With its natural

wnich

Political

and

social

will tend

than

Latin

This

year,"

stock

increasing awareness that mere
help cannot solve the

problems

total

America

conditions

broader and

tribution

the

lective effort.
make

fruits of the

Thus

benefits

and

closer to

bring

the

vital

independent

and

Manhattan

Bank

West

Indies

today

Bank

possible future acquisitions

office

opened

was

Plan"

area

Trust

19;

Herrera

Session

launched

was

Paris

office

over

;,i

continue

from

Co.

representing
at

represent

the

This is
To

1959

1958

25.2%
18.1

Dated July 1, 1923, Due

49.1

53.0

47.9

New

American

York

Stock

(5.6)

(5.7)

(4.5)

(4.8)

4.2

3.5

4.2

(234.0)
448.0

assets—-

Total

Vercoe

5.2 "

Assets_$8,530.3

100.0%

$8,471.9

100.0%

$8,330.0

LIABILITIES—

Plum

$679.8

Capital funds—

8.0%

7.8%

7,349.4

——

86.2

62.1
,

5.1

•

Total

'■

439.0

-----

Other liabilities

NOTICE

change

•

7.7%
88.2

100.0%

2.8

$8,471.9

3.4

100.0%

$8,330.0

Bell Teletype NY

.Specialists in Bank Stocks

(Scrip Certificates)
Bonds of Series C,

3c/o External Sinking
January 1, 1976.

EXTENSION

the

above

Bonds

the

and

April 26, 1946, to

appurtenant

coupons

ex¬

f°r

100.0%

$7,809.8

REPUBLIC OF EL SALVADOR

By Ricardo Arbizu Bosque
•

.Net. Oper.

....

■

Book

..'Year

Earnings

'Divid.'

$2.40

1939—

4.81
4.14

2.35

1957—

4.13

;

,1955i;; 3.15 : "•
;

"fEstimated

2.00

10.9%

Approx. Bid
Price

■

—

13.3

9.0

—

47.

9.4

—

8.6%

-r

45 i

43.01V

* Adjusted tor 2%

stock

...

which

12.3

matured

of said

11.2

Sinking

dividend

•

paid in I960.

13.0

*u
ju

Fund

amount-thereof
to

15.4

v v

«■

•'

June

•

30,

1954,

Minister of Finance and Public Credit

July 1, 1948 who surrender such Bonds in acceptance
1954 will receive in lieu of said 4% External

Offer after June 30,

V 8.1 V

•

additional 4% External Sinking Fund
Dollar Bonds, due January .1, 1976, were us ted pursuant to the Offer
dated April 26% 1946 as extended. However, ho'ders of Republic of El
Salvador Customs First Lien 8% Sinking fund Gold Bond Series "A"

11.5

43.72

N.B.—After

Ratio

10.0

1960

-Avg. P/E

Range

44.80

2,21

3.66

$51.00f

Book Value

December 29,

47.29

2.35

1956—

48.86

2.35

1958—

Value

Statistics*

% Earned, on

Exchange

1-1248-49

Republic of El Salvador 4%, 1A/<i% and 3% External Sinking\
Bonds, due January 1, 1976, and to pay Certificates
of Deferred Interest (Scrip Certificates) in cash at 15% of their
face amount, may be accepted, is hereby extended from January
1, 1961 to January 1, 1962.
The period for exchange of Convertible Certificates for 3%
External Sinking Fund Dollar Bonds of the Republic, due Jan¬
uary 1, 1976, in multiples of $100 principal amount, has also
been extended from July 1, 1962 to July 1, 1963.
Copies of the Offer may be obtained upon application to The
First National City Bank of New York, Corporate Trust Divi¬
sion, 2 Broadway, New York 15, New York, the New York Agent
of the Fiscal Agent, Banco Central de Reserva de El Salvador,
San Salvador, El Salvador, C. A.

'■

•

July 1, 1948;

Fund Dollar

100.0%

88.7

2.9 '

100.0%

Liab.__ $8,530.3

Stock. Exchange

Offer

The time within which the Offer, dated

$7,809.8

7.6%

88.8

Selected Per Share

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
k.

firms.

in 1950.

Fund Dollar Bonds, Due

50.3

4,186.2

:—

1960-l$5.50f
Members

The firm maintains

July 1, 1957; and

Convertible Certificates for

5.2

(Mortgages).

Laird, Bissell 8 Meeds
Members

the present

Certificates of Deferred Interest

14.7

5.3

120

are

of the country's

Sinking Fund Gold Bonds,

Dated July 1, 1923, Due

1957

5.7

Request

one

7% Sinking Fund Gold Bonds, Series C,

25.6%

12.4

Comparison
on

Scries A,

Dee. 31

5.7

Loans

Y. CITY

Bulletin

Republic of El Salvador

Quarter Earnings

■

and

Dec. 31

24.7%

Singed

1,.

•

17.8

BANK STOCKS

Holders

not an

Customs First Lien 8%

the

can

482.0

Reserves

3rd

Security Traders Associa¬
_

The present company name was adopted

largest seg-

1,517.1

Deposits

1935 and 1929 re¬

network of private wires to 21 out-of-town correspondent

169

issued with respect to

Street.

Lienhard

was

22.2%

—! $1,897.0

Ohio.—David

offices

during 1958. During 1960

Dec. 31

1960

100.0%

largest dealers in over-the-counter securities.

Condition

Vercoe Office

Brownell

members of the

are

partners of Troster, Singer & Co. which

Gov'ts—

Other
.

men

Colonel Oliver J. Troster'and Louis P.

was

offices

applications for suburban expansion

Business loans

Cash

Trade
,

Ernest

bringing

(In Millions of Dollars)

the

CHILLICOTHE,

The three

tion of New York.,

The

Walter Filkins

mergers.

Other securities

joined

spectively.

Nassau,

network

overseas

September 30

Forty-Seventh
National
Foreign
Convention, New York City,

Pauley

con¬

branch in Great Neck Plaza, Nassau County,

ASSETS—

of the world.

Americas

who

planned in Panama and in Lagos, Nigeria.

Statement of

sphere, and, consequently, in the

Dr.
(Luncheon)

Milton

growing demand for credit cards, the "Chase

further

and

America of 1960" is, and will con¬

Pauley,

Lienhard who joined predecessor companies in

tinue to be, an irreplaceable factor
in the prosperity
of our Hemi¬

address

Milton

are:

ex¬

banking,

*An

admitted

predecessor organization in 1928, and Walter L. Filkins, and Ernest

105 New York offices.

some

firmly convinced that the "Latin

peace

general partners, effective Jan. 1, 1961.

materials

raw

critical toward Chase Man¬

strong

Caribbean

are

Chase will have

obtained

the

that I

with

banking

branches

expected.
reasons

men

system

reports of leading banks

be moderately

can

connection

approval for

street.
It is for these

credit

annual

for 'continued

Manhattan Charge

their

man

that the

In line with the

col¬

This, in turn, would

effective

one

1960

addition to

foreign aid and investments

The

equitable dis¬

will be admitted

opened and offices

created by the Latin American

countries themselves which permit
a

balances

an¬

trading department

The despondent note is the
modesty toward a detailed
the particular bank's operations, a situation where

stand

During

internal

correspondent

that three co-managers of the firm's

nounced

Company (Virgin Islands) in 1939. This month's announcement
that authorized capital stock will be increased
beyond an amount
needed to pay a 4% stock dividend allows for the issuance of

(3) The United States has shown

"Latin

and

money

1957, and the Clinton Trust Co.

financial

where

major merger
in 1955, of The Chase National Bank of t^e
City of New York
and
Bank
of
the
Manhattan Company, has been followed bymerger of the Staten Island National Bank & Trust Company in

America

tions.

unless

bank

the result of several past mergers and management interest
tinues strong for local branch bank expansion. The

outweighed by four peace¬
able, orderly and important elec¬

I960"

only

''/ownership, of unit banks. 'The Chase

was

are

Troster, Singer Admits Three
Troster, Singer & Co., 74 Trinity Place, New York City, has

such
leanings are understandable. Commendation appears in order for
its stand against the expediency of bank
holding companies for

for example, one minor coup d'etat

America,
Its strong

United States banking
wide geographic branch
banking system.

With

hattan's

are

toward democracy

totalitarianism.

characterizing the
a

Although

unrest

rapidly growihg1 population.
Happily, however, history permits,
that

knowledge is even closer at hand. Further improvements of such
analyses should improve relationships with stockholders and de¬
positors.

of its

believe

an attractive price relative to several other New York
banks, the new dividend rate remains among the lowest
payouts of earnings.

City

share.

Bank

factors

selling at

This step away
more immediate

Feb.

the outlook of the general economy, certainly welcome

analysis
;

syrftptoms- of economic instability
s'&nd the unsatisfied' social-meeds

the

wonder

in the "Latin America of 1960"

small

resources

world.

(2)

discussions.

burgeoning

population,
it
emerges as potentially one of the
most promising new areas in the

network

pound
•

and

record

on the indicated
$2.50 annual rate. The
approved will be payable to stocknolaers
1961 for payment Marcn 10, 1961. Besides the

once

institutions.

of
vigorous
economic
growth, despite the present prob-;
of

Present

value.

par

visitor

new

appear

$2.50

the

respectively.

prevalence of correspondent banking itself readily reveals
the role of leading banks as not
only national but international

sibilities,
lems

than

The

Latin America in
wit a

in contrast to

these conclusions:

sub-continent

smaller

and

total

bank

Summing

leads

billion. Such balances account for
approximately 20%
deposits. On the other hand, savings deposits in recent
years have risen faster than demand deposits and
presently exceed
$550 million. The correspondent leadership
probably explains a
management attitude favoring the present multi-thousand unit
of

the

greatest good.

annual rate of $2.40 to

considerably

Manhattan

assailable.

and in what manner

areas

funds

world commercial banking.
lead in the correspondent
banking field with so:ne 4,000 bank
relationships maintained in the United States alone appears un¬

program

best

countries to determine

attract additional customers. To
area
the stifling canyons must

Street

stock dividend

significance to investors is the announced intention of the direc¬
tors to pay a 4% stock dividend in
March, 1961 and to raise the

designate the Inter-American De¬

velopment Bank

Wall

national disgrace to the
recognition of humanity.
from stark materialism is indeed welcomed.
Of

The Member States of the Inter-

American system have

the

were

at work for New York City's wholesale-retail
banks, Chase Manhattan's size and diversification advantages
provide investment attraction for its stock. Not only is the issue

completed

loans

outstanding is 13,430,340 shares of $12.50

favorable

1961. As of Jan. 1, George Champion,
McCloy as Chairman while David

during 1961. Management is to be applauded for
its forward
looking planning in allowing breathing space, a factor

international

scheduled at Chase Manhattan with

are

new year

reported resources of $8,530 million at Sept. 30,
gain of 7.5% frorh the corresponding 1959 date.

yield of 4.0% is obtained

(N. Y.)

succeeds John J.
Rockefeller will assume the office of
President. Barring additional
delays, the move into, the new head office skyscraper
building will

Social Development
America, is a vigorous
approach to helping our countries
in their struggle for
orderly de¬

through

...

President,

cooperation.

ringing in of the

Latin

velopment

Several significant actions

stance the principles enunciated
by President Eisenhower and ratified by the U. S. Congress in the
for

THE CHASE MANHATTAN BANK

and

Earnings for nine months 1960 were $4.11 a s .are compared
with $3.42 a year ago, a gain of 20.2%. At the recent
price of 63

This Week —Bank Stocks

change.

ment

BANK AND INSURANCE

acci¬

dent that those countries with the
best

a panacea

it is

area,

6016

Jnly ii; 1954

a cash distnbut'on e^ual
to the principal
iplus accrued interest on .such- amount from January 1, 1946
at the rate of 4% p^r annum. ;
"
•
:
.'i

Dollar Bonds,

The Commercial and Financial Chronicle

(2C78)

1950 to the current rate of $3.00,
latter' figure, representing a,

payout of about 78%,.
At the recent

SECURITIES

price of around 66
the stock yields 4.5% and sells at

OWEN ELY

about 17 times

BANKS AND BANKERS

earnings.

Consolidations

Consolidated Edison

electric

and

United

utility

gas

with

States

the

annual

rev¬

about $648 million. It
all of New York City in¬
cluding Staten Island, and most of
Westchester
County.
Electricity
enues

serves

contributes
enues,

about

15%

gas

80%.

rev¬

steam

5%;

about

and

Admits Mrs. Saits

1,000 degrees F. at a pressure
of 1,500-2,000 pounds per square

inch.
*•

Jan.

From

1955 to Aug. 31,
and two-thirds

revenues

are

five

Con Ed and its subsidiary
spent $954 million for construc¬
tion and in addition made pay¬

years—

then supplied to 400 bamboo

was

filament lamps in office buildings
in lower Manhattan. The steam
business also started in 1882, sup¬

plying customers in lower Man¬
hattan.

These

serving the
now

pioneer companies

followed

were

others,

many

various

prise

cox

Seven

areas

New

which

York

City.

gas companies in Manhat1

tan merged

solidated

in 1884 to form Con¬

Gas

Company

of New
York.
Other
mergers
followed,
and in 1936 after the merger of
the principal electric
subsidiary,
the

name

changed

was

Con¬

solidated Edison Company of New
York, Inc.
New York

City, in addition to
being (the largest city in the coun¬
try, is also the greatest retail and
wholesale

market. and ^ has

the

largest number of service and fi¬
nancial enterprises;, It is also the
greatest

manufacturing city with

38,660 factories, most of them
small. Wearing apparel and acces¬
sories are the major output and
this
industry employs more
over

workers

than

either the

automo¬

tive plants in
Detroit, or the steel
plants in Pittsburgh.. Other indus¬

tries

include

printing

and

pub¬
lishing, food processing and metal
working. A copper smelter and
refinery is the biggest user of

electricity I in the city. However,
the

character of most of
New York's industries makes for
consumer

stability, which is reflected in the
company's, long dividend record
going back to 1885.
The company's steam
generating
capacity totaled 4.9 million kw at
the

end

last

and during
1960-61 632,000 kw will be
added,
year

including
nower

a
275,000 kw nuclear
plant at Indian Point. 357,-

000 kw of

new

added

capacity will also

each

Seits has been

ments of

the

years

spent in future: $222 million
was
expended in 1959 and $225
million is budgeted for this year;
for the five years 1960-4, inclusive,
total expenditures are estimated
at $1.2 billion.
*
In

financing
its
construction
Consolidated Edjson has
permitted its equity ratio to drop
from 45.1 in 1950 to about 36.5

Equity fi¬
nancing in the postwar period has
been largely through the medium
this

conversion

1948

year.

debentures.

stockholders

1959

and

were

firm

A. Jacobson and John Watts.

Albarracin,
was
with
Trust Company when
that Bank merged with the Chase
National Bank in 1930 and that
Mr.

r,m

Equitable

She had

partnership
has

firms

the

Alexander

general

Vice-Presidents.

also

oyer

years.

ca«e

1960.

The

ber the

company

lion

the

called $15 mil¬

convertible

debenture

plus $22 cash can be
exchanged
for
two
shares
of
Consolidated

Edison

for

some

has
been
earning
what
would be considered a sub-normal
years

rate

return

especially
such

its

rate

base,
compared with states

Florida and Texas where

topher R. P. Rodgers, Frederick J.

Ripley

appointed

Names Dumke

regulation has been liberal. Ac¬
cording to the statistics prepared
by Standard & Poor's, the com¬
pany earned only 4.3% on yearend net plant account in 1951; the
figure increased to 5% in 1954
and has held around that level in
later years.
(Percent earned on

has

company

remedy
asked

this

the

sought

;

of Directors of Harri¬

The Board

The

Ripley &. Co., Incorporated,
Street, New York City,

man

D.umke

condition

Public

and r

Service

accelerated" depreciation.

Hearings

have

ended

now

and

briefs should be filed by the end
of

January, with

pected

some

time

decision

1961.

ex¬

How¬

his

prookly, New Yoirk

efforts

business

new

de¬

School

Business

Prior

the

A11

Ripley & Co., Incorporated
Dumke was

Schwabacher

Lake

ner

considering, adding

second unit of about 400,000 kw
at Indian Point.
Also, it has joined

with
in

six ether

New

York

announced

struction

utility
State

plans
of

atomic power

companies

whiclY have

for

later

con¬

300-500,000

plant.

This association of

seven

utility

companies in New York StateEmpire State Atomic Develop¬
ment

Associates

anxious

ESADAA—is

obtain a cost around
7 mills per kwh at the
new plant

(lower than will be obtainable at
Indian Point).
They have there¬
fore,
selected
General
Electric

annum

interim

increase

last

January.

Co.

Salt

without

specifying

the amount.
The move was opposed
by law¬
yers representing large users of
electricity, since there had been
an

increase of 12.5% in rates for
users last
January. However,

such

Exhibit

112A, Table 4A, filed in

tures

for

calls

greater

with

for

project
embodying a
year

gas-cooled

efficiency. The

General

$8.7

Dynamics
million three-

beginning Jan. 1,
high - temperature,

reactor to

built

Peachbottom, Pa. General Electric
will attempt to
develop a reactor
to
shoot off high temperature
steam using the
boiling-water
principle. EFADA wants uranium
furn^cus that wLl boil out steam

recent
use

years

these

savings

had

been

nor¬

malized,

share
increased

earnings would
have
only about 300
in the past five
years, it is esti¬

mated. The annual dividend rate
has been increased from
$1.70 in

xe c u

t i

■

v e

with

been

has

the

1949.

■'

•

has

Schwamm

Marc

Jay

Administrative

elected

"■

been

V ice-

liam

McMillan will

become

Corporation,

Stock

Buhl

Building,

Exchanges.

org e

Vice-President. Mr.

•

Orange, N. J.,
announcement

Mr.

according to
Rudolph

Mr;

Simon

banking

the

hill, Noyes & Co., and Is

went

mem¬

ber of the. Investment Association

in -New

1946

York.

New

Murray Felder Opens

Bank

for

DENVER, Colo.-f—Goodbody & Co.
has opened a branch office at 510

Pennsylvania Avenue. Edward G.
Seuhert is associated with the hew
'

Savings

-.New York;

and

the

the
.....

City
^

*, Mir.

Schwamm

was

Chairman of

the

Board

the

American;

Trust Com-

p a

York

t h

York,
trust

been

Jay

Schwamm

Marc

with

sociated
the

Company

Trust

American

since 1953 and was elected

Chair¬

in 1958.

man

has
a

appointed

William

Vice-President

department,

pion,

President,
terday.

was

promoted

Vice-President

been associ¬
ated with Irving since 1930.
At the same time the following
has

elected Assistant Vice-Pres¬

idents:

Roger

Day,

Harry

Goett, Robert W. Hutton, Stanley
A.
Kasper, Jr., John D. MacNeary, Charles J. Peterman, Ernst
Schneider and Howard M. Stu¬

'■';

art, Jr.
*

'.;

•

,..

Appointment of Franklin H. Middleton

Vice-President

Manufacturers
New

the

Company,

Trust

was
announced by
Flanigan, Chairman of

York,
C.

Board.

Mr. Middleton joined

Manufac¬

turers Trust Company in 1935 and
was appointed an Assistant VicePresident in 1951.
.*

SR.

Baggott,' Lawrence H.
Bober, Philip J. Englert, Edwin C.

Thomas

Fox,

Adams joined the Bank

in 1941. He was appointed
a
corporate trust officer in 1955
and
was
promoted to Assistant
a page

1959.

Assistant

in, the

George Cham¬
announced yes¬

Vice-President in

who

Howe,

Vice-President,

"•

and

Vice-President.

Jackson to

from

Donald

Howe

Mr.

appointment

the

announces

Paul

The Chase Manhattan Bank, New

Adams

Presi--"1 ^'|

dent.

Horace

Trustee of The

states Trust

York,

Mr.

(Special to The Financial Chronicle)

1934

Mr. Marshall is

Denver Branch

United

the

1925 with
National

joined The Bank
Manhattan Company.

Stock Exchange Speakers Bureau.

Goodbody & Co. Opens

career

Company- of

and the New York

(Special to The Financial Chrqnicljb)

American Exchange

Bank

office.

President

was

his

JT"

j.teicht-

man,-

were

Jan. 1.

Marshall

when it merged with Chase
National Bank iri 1955. He began

mutual fund department of Hemp¬

of New York

Irving Trust Company, New York,

John

pany

manager

and

The Bank of the Manhattan Com¬

Sachs, President.

T-

Marshall

Vice-Chairman of the Board

of Directors

director of United Components,

Inc.,

***

McCloy, Chairman of the Board.

come

York,

Mr. Marshall, an. Executive VicePresident of the bank, is to be¬

Named Director

New
•

as¬

Bank, New lork, announced John

Donald A. Simon has been elected

Jacob

had

Swearingen have been elected
Directors of The Chase Manhattan

members of the Detroit and Mid¬
west

America,
an-

mercial Bank

Vice-President of First of Michi¬
gan

North

Department.

■

DETROIT, Mich—On Jan. 2 Wil-' Lawrence

ha's been due to the

flow-through of tax savings.

;

America.

Lynch

the Trust

York.

an estimated
$3.85 for 1930 (slightly below last
year's $3.92). However, some of
the growth in share
earnings in

■

who

Gray has been Vice-President in

from $2.22 in 1949 to

'■

Assistant

N e w
prior to
joining Com¬

Gray becomes
E

ing sdme of the department stores, DENVER, Colo. — Murray, Felder
big real estate projects, nonsub- is conducting his own investment
business from offices at 2255 So.
and General Dynamics to
develop rpetering landlords, and large in¬
two
Jackson. He was formerly resident
competing power concepts, dustrial customers.
partner for Felder & Co. of New
employing ultra - high tempera¬
Share earnings have increased

contract

■

of the Board.

the

rate proceedings some time
ago, indicated that the company
had been earning a return of
only
2.6% from large customers includ¬

Watts

Mr.

Bank since

Chairman

To Be V.-P. of

The company in October asked
for another interim rate increase,

•••;

to Vice-President in 1951.

been

has

City, Utah.

Bank,

Chester

in February, 1959, Mr.

with

succeeds

joining the
Buying Department staff of Har¬
riman

Vice-

President

Admin¬

a n

former

istration.

Lynch,

Trustee

Mr. Dumke is a graduate of the
University of Utah, Class of 1950,
and Columbia University, Grad¬
uate

announced.

Mr.

ever,

Con Edison is

.was

pany,

velopment.

recognizing the inadequacy
of the present rate of return, the
commission allowed a $14 million

1962/ 1963 and 1964. Last year's
peak load was about 4.2 million
kw, indicating a reserve of 15%.

1945 he became

Counjy
Trust Cohi- riouttped

Vice-

Assistant

as:

Com¬

a return of 6% to,7%,
using flow-through accounting,for
the tax
savings resulting from

1941.

Kings

Mr. Dumke. will deyote-

President.

Lvnch

J«bn

;■

mission for

use

election * of
President

Wall

John

to
has

employee in 1931. He Was ap¬
pointed an Assistant Cashier in

President of the Commercial Bank

invested capital is only 4.8%.)
The

W. Josiah L. Patton.

was

Deputy Comptroller

from

permanent

Also

Wheeler.

Todd and Warren

announced the election of Edmund

stock.

common

Harriman

for

redemption, thus forcing conver¬
sion; some $29 million remain
outstanding. In conversion, a $103

are

Dickey, Lester Garvin,
W.
Robinson,
Chris¬

Malcolm

vacation

became

and

Vice-President and was promoted

Vice-Presidents

new

while-

Daniel

Chase in

Jacobson entered

Mr.
1930

school

City Trust Company, New York.

given subscription rights to con¬
vertible debentures. Last Septem¬

the bank's affiliate First National

that

vember

Morris

Mr.

Vice-President

Executive

Vice-President

and

1944

in 1953.

Calhoun, John Ex¬

Exchange

Exchange records inonly 44 held this rat¬
ing in Exchange firms as of No¬
•

Joseph E. Morris. Messrs.
Calhoun and Exter were formerly

branch. He Was pro¬
Assistant Viee - Presi¬

moted

dent

ter and

rare

Stock
fairly

been

New Senior Vice-Presidents are

firrh

Company.

Thompson

Hill,

Admission of women to

and

named Manager of

year was

Mexico

the

new

estment

banking

Calhoun

dents, six Vice-Presidents
Deputy Comptroller.

the

with

i n v

same

Alex.

John Exter

iously

associr

ated
Seits

and was

President in 1947.

p r e v

Anita

joined the Bank in
prompted to Vice-

Mr. DuBois,

May, 1955, a.s
Office ;Mana-

Mrs.

has

1927

the i i

been

'
Bank, New

appointed four
new
Senior
Vice-Presidents
in
the
international department, George

York

Mrs.
joined

Seits

ger.

The Chase Manhattan

part-,

1960.

counsels

of Jan.

ner

John J. Grinch to associate staff

Bois, Louis A. Albarracin, James

general

program,

August

Capitalizations

Revised

•

Dec. 21.

to.

admitted
the

Offices, etc.

Champion, President, announced
They are William 3- Du-

Mrs. Anita E.

34%

A. Edison's old Pearl Street Sta¬
tion (still preserved). Electricity

First National City Bank of
Ney# York announced the appoint-

Garvin, Bantel & Co., 120 Broad¬ merit of three Senior Vice-Presiway, New York City, members of
the, New York Stock Exchange,
and
American
Stpck Exchange,:
announce that

$30 million toward the
purchase price of the New York
residential, 54% commercialand City power plants, an agreement
industrial^ 5 % railway and 7 %' having been finally reached with
municipal and other.
the City after years of negotia¬
The predecessor company, Edi¬ tions.
During the same period
son. Electric
Illuminating, began about $149 million property was
business back in 1882 at Thomas retired.
Still larger amounts will
Electric

New

•

The

1960—about

Branches

New

•

Garvin, Bantel

Company of New York, Inc.

Consolidated Edison is the largest

1960

Thursday, December 29,

NEWS ABOUT

the

Llewellyn Jenkins, William

George
Mohrmann,,
and, Frederick

McGorry,,
Daniel
B.

Phelan

Utley, Jr„

were

elected Vice-

of the Hanover

Presidents

Bank,

New York.
.

Also announced yesterday was
the promotion of Charles F. Ruge
to Asristaht Vice-President; James

National Bank of Commerces Nor¬

B„ Doten," Jr., and Frank Litter, to

folk,

iaccounting

officers; Michael G.
economist, and

Duerr to associate

The

of R.

Board

Va,

Directors

announces

the

,of

the

election

Cosby Moore, President. It

will be effective Jan. 1.

Volume

192

Number 6016

The Commercial and Financial Chronicle

(2679)

compared with $308,150,197 a year
ago
an increase of 23%.
The

FUNDS

Our Reporter on
'

number

shareholders

crossed

the

100,000 mark during the year
to
102,473 from
85,838 a
year'
earlier. Shares outstanding rose to
26,366,558 from 21,995,104.

ROBERT E. RICH

The shares at the year-end were
at $14.34. When adjusted

Investment
farewell

limp

1960,

hand

and

little

wonder,

.year

was

Nor

bidding
showings a

managers,

afe
dry

for

the departing
difficult' one.

most

by the
prophets, mostly outside the fra¬
ternity, who conjured up visions
of

diamond-studded decade.

course,

king and

yet

may

1960s will be

that

the

time of every man

stock

every

but if it's true

investment
has

been

ordeal;
receding economy, a rejection
by the electorate of the party gen¬
erally favored by the business-in¬

ca's

community,

sense

uneasiness

place

the

sales

$2 billion.

Company Act of 1940 by
Congress, the business has en¬
joyed .an unchallenged growth.
This growth may continue in the
ahead but there is

taking
other

the

over

world

and

dynamism has broken out
upside. •
'v
:

from

vie

with

success

banks,

the

even

mushrooming investment
But, as one fund manager,
noting the setback in 1960 to other
fields

endeavor,-consoled him¬

self: "We've had better years, but
who's

complaining?"

which

has

standard

created

known to

past also has been

the

demon¬

society

the

highest

For

ever

the

shareholder., accounts

of: mutual

funds

investment

closed-end

and

companies
the

topped., 5,000,000.

number

and

shareholders

reached

2,500,000.
Assets df tlie
187-member companies of th£ Na¬

tional; Associa tion pf Yp,vestment
ComDanies* are estimated at close
to

billion.

$18

During the year the total num¬
investment-company share¬

ber cf

holder accounts increased by 650,€00.
Of this, 300,000 represented
the

increase

net

cumulation
number

plan

periodic

accounts.

such

estimated

ac¬

The

accumulation

compares

with

1.400 000.

1,128,696

during the

and

mutual

tions

about

vear

shares.

fund

the

during

year

now

Redemp¬

year

totaled

This

remained

percentage

un¬

changed from 1959, when both re¬
demptions and assets were lower.
George A. Mooney, the executive
director of the N. A. I. C., has said
that a gradual increase in dollar
amounts of

redemptions could be

coming years as in¬
purchased shares 10,
years ago reach their
investment objectives.
■
'

expected

vestors who
more

per

is calculated

companies

4.4%

listed

that investment
group

and
■

Investment
ports

Trust

now

hold

outstanding stocks
the Big Board, up from

a~set value

was

Exchange, holdings
much wider segment

re¬

(May 31) $10.75.

and

3,500 issues of roughly

portfolios. Assets of invest¬
ment companies primarily are in
common

But
in

stocks—over

$15 billion.

estimated $750,000,000 are

preferreds and over $1.5 billion
corporate
bonds, short-term

cornnrate

and

Government

;.J From Sept. 1

changing times, investment man¬
agement was in there busily trad¬

purchases
for
portfolio were around $3.4
billion and sales about $2.4 bil¬
During

stocks

equilibrium rather well
of the opinions around

Armour

holdings

-of

tric,

Power

and

holdings
Light
and

holdings

Electric.

Light,

Techno

its

vested

Inc.

Fund,

Precision

Telecontrol.

reDort

operations

Investment

the/

shows

Plan

than

21,000 plans, repre-~
net, facq amount value'
$100,505,000, were purchased
by investors during the-30-month
a

ended

nouncement

Mov.

wsre

distributor

introduced

for

June,

contractual

30.

made

1958,

known, especially
might have an influ¬
ence on the international position
of the dollar and the gold situa¬

figures

tion.

This

course

still

sectors

soonsored

Growth
and

The

for

Series

B-3

and

Bond

Keys'ore
Stock

Common

Series

declared

have

S-4

respectively.
Both dis¬
are payable Jan.
15, to

cents

and

*•

Institutional
a

...

Growth

from

income, payable Feb. 1, to shareowners

of record Jan. 3.

QViott7- fn

KJlid/W

ThITI

LVJ

U will

;

short-term

use

short-term

open

Increased Purchases of Long

Bonds

Purchases

institutional pur-'

distant

most

Gov-

•

Expected

long-term obliga¬

tions is expected to be
in

stepped up

1961, because there are indica¬

tions that institutional buyers are

going to continue to be attracted
to Prevail;
to fixed income bearing securities
capital markets because of the more favorable
are
moving into - the new year- income that is available is these
with the feeling that the course
obligations. Also the fear of in¬
Easier

interest

Credit

rates

"'ill

continue

side which means
and credit will be

for

measure

the

was

the

times

economy

dications

that

yet

low

the

past

was
are

in¬

therp^whl be.

sharp lowering in the cost h,f
borrowing unless there is a (tail,
spin in the business picture.
On

the

other

hand, this does
prospects that in-,

rates will

terest
the

existing
in

the

evident

market

Govern-

expected
in 1961 with the

obligations
to grow

quite likely to continue to be
bought by
those who
are
in¬
terested in making profitable ex¬
changes
into
higher
coupon,
longer-term securities. A modest
increase in the

Government

supply of real long
should bring

bonds

institutions

into

these

obligations.

not decline from

not

few
are

money

Samuel M, Stauffer is conducting

the

his

the

borrowing rates
long maturity will
move
lower
during 1961% They
point out that the economy will
reap more benefits from a lower
cost of borrowing for long-term
purposes than would be obtained

own

offices

for funds with

1206

under

Street

Stauffer
Mr.

investment business from
at

Northwest

the

firm

46th

name

Investment

fer Petroleum

Corp.

Policy?

aggravation
John S. Shaw, Jr. as of Jan. 1
which declining near-term rates
will
become, Vice-President-Fi¬
caused the international position
nancial; of Southern Natural Gas
of the dollar in 1960 is not likely,
Company.
Mr. Shaw-will retire
to happen again during 1961, in
from, partnership
in
Ingalls & the
opinion of many money mar¬
Snyder,,, members
of
the 'New ket
experts. Whether this meansYork
Stock
Exchange,
as
of that the "bills
only" policy or, in <.
Dec. 31.
other
words,
the
purchases
of ;
only short-term obligations in the
Joins Harris, Upham
open market to influence the flow
(Special to The Financial Chronicle)
of funds will give way to a pro¬
gram which will include securi¬
OMAHA, Neb.—Robert T. Johanties with a maturity that would •
sen has joined the staff of Harris,
Upham & Co., 1904 Farnam Street. have a more direct bearing on the
the

addition,

Incorporated
Investors

EST.1925

A mutual fund investing
list of securities

Affiliated
Fund

A Common Stock Investment Fund

the

alone,

the

year,

area

purchases

common

totaled

Massachusetts
Fund

Investors

Grow

are

net

asset

completed

value

per

its

reached

$378,000,972

Prospectus

in a

selected for

possible long-term growth of
capital and income.

Incorporated
Income Fund

Nov.

30,

upon

request

A mutual fund investing in
Q

list Of securities Selected for
current income.

A prospectus on each fund is

share, shares

outstanding and number of share¬
holders.
The
total
net
assets,

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

income

28th
fiscal year on Nov. 30 with record
year-end highs in total net assets,
Stock

from your investment

lord, Abbett & Co.
New York

—

Atlanta

—

Chicago

—

Los

Angeles

—

available

dealer.

THE PARKER CORPORATION

San Francisco

Company.
Stauffer is President of Stauf¬

MUTUAL FUND
Change in "Bills Only"
In

by
so-

called "advance refunding" issues

from lower short-term rates.

So. Nat. Gas Co.

that

source

Stauffer Investment Co.
levels,
especially
long-term sector. It OKLAHOMA CITY,
Okla.—

specialists

opinion

bonds

attractiveness

The

some

not rule out the

made

.ment

for

interest rates has not been

not

and

wane

investlhehtdn 'this"Coming year.,

which have been in ef¬
the greater part of the
mst year. However, the level of
as

the

likely to be as great a factor in
making commitments in securities
as it was in the past. Accordingly,
it is beieived that greater use will

credit,

easier

flation

the easy

policies
fect

quarterly dividend of
share from investment

since any
the

for

1S61

the

operations
real varia¬

market purposes
will be reported in this data.

....

has

The money and

those

Fund

what

see

show,

continues to grow.

ernments

tion

the

step

only"

will

There

of open market

will

the heavy
larger commit¬
ments that are being made in the
intermediate
and
longer - term

despite

side,

"bills

very careful watching
available money market

cer¬

issues

demand

full

are

bonds.

financial

the;

Governments is still

Fund.

down-trend. And there

fls

I>w-Pr5re4

VIP is
for
the

underwritten

Channing Service Corp.

so-called

jn
not

are

the

there

caution

doubt

community.

accumulation of shares in the In¬

stitutional

feeling of

tain

that

not

places

ligations of both Federal and non-

made

means

that

high

policy. A change in the "bills
only" program would not be un¬
favorable to the longer-term ob¬

that

are

First

VTP.

program

Federal

the

those

when

holders of record Dec. 31.

Metals,

number

■'

$5,000,000,
is now in¬
additional $411,000

Shepherd Industries,,
Corp., Inso
Electronic
Products, Central States Develop-,
ment,
Jefferson
Properties and;

period,

per

about

Gemex

„

tributions

reports that of

Taccone

senting

compared
share in 1959

income

Instrument,

National Resistance Corp., Keinath

Hancock

This

vestment

Machines

committed for investment. Invest-

applicable

$2,700,000

and

tion

with

Administration

committed

for

money

year.

those

new

the coming
market ob¬
servers, however, believe that the
money and capital markets will
do nothing until the program and
policies of the new Administra¬

regular distributions from net in¬

ment commitments include deben¬
tures

taxes

year.

cents

prin¬
cf

assessment

slightlv,

6 cents per

than

declared

Fund

capital

income

Lower-Priced

Al¬

holdings

Business

Fund,

com¬

Philadelphia

reduced

International

arising

include

legheny Ludlum Steel, Bethlehem
Steel, El Paso Natural Gas, Gen¬
eral
Public
Utilities, Minnesota
Power

per

»Jc

General

period the

same

eliminated

qnded
level of
compared
with

from

nrior

Dynamics.
Over the

year

larger
shares outstanding.

Texas

New

Duquesne

Montana

with

Detroit
Edison,
Light, Illinois
Power, Iowa-Illinois Gas & Elec¬
Utilities.

cents

York),

Power

offing

Other

earned

Federal

Co., Baltimore Gas &
Electric, Consolidated Edison Co.
(New

the

year.

I960 fiscal year was 74 cents, be¬ ..movement of the business pattern
has been responsible in no small
a special charge equivalent to

Florida

and

manager

record

the

answered

self-evident

few

constructive tone

chases" of

Management

fiscal

the

for

that

are

coming

longer-term is¬
during

and
be

Investment

Hoping to adjust wisely to the

lion. '

some

Treasuries. The

»<«

investment

Nov. 30 the cipally

increased

.company

each

minutes.

issues.

ing.

its

and

could

sues

the

fore
,

retail

large

intermediate

market, ' not¬
last
minute

the

in the previous that money
year.
Net income per share on plentiful as long as the economy
shares outstanding at the end of! is on the defensive. The uncertain

year

the

small. Some

industry,

five

for

$702,297

share. Net

2,000 corporations are included in

American

talks

31, 1960,
$750,848.
This

The an¬
H. L.
Jamieson, president of King Merritt & Co., Inc., exclusive national

funds.

company.

Oct.

Boston

$10.95
share

last fiscal year

that

under¬

standably puts major emphasis on
the seascmed equities of the New

sponsor

income

earlier
$.11,57 and at the close of the

investment

Stock

of mutual

group

net asseis at Nov. 30 totaled

$63,296,090,

Variable

represent

37,000

principal underwriter for the

This

$9.47.

$37,993,470
earlier.
;

a year

the 4.2% at the end of 1959. While

York

than $360 million Television-Elec¬
tronics
Fund, Inc., reported rre+

the

management

its

Corp.,.

as¬

with

compares

$9.51

net

reports

totaled $36,227,170

renrecenH^'-e and Polaroid.
open-end
investment

companies' average net assets.1

■

Inc.

$875,000 000,

5.4%

assets

pany

billion worth

ending bought $2.1

Fund,

at Nov. 30

This

earlier.
Investors

ing
an

share¬
two of the Templeton,

(

plans in effect at the end cf 1969
is

Te'evision

year

time in which

Corporate Leaders report, he
delivers his message as president
he

well-being

mankind.

ti*.

report that carries

the

in¬

Government

year-end exchanges, is maintain¬

The

clubs.

sets

faith

the

over

ago.

today

Damroth

fund

insurance com¬
panies, real estate syndication and

Texas

their

annual

holders

which have learned
the

You may be sure that
henceforth the funds will have to

ica

strate

withstanding

year

tributed

from

pioneers.

investment-minded folk of Amer¬
1960

The

3.6% increase

oral message through the medium
of a "talking page" will be dis¬

Yet, in spite of these and other
discouraging
signs, the
thrifty,"
in

mis¬

challenge

new

sources

much

CHIPPENDALE, JR.

distribution of

share, payable Dec.
share value amounted

years

per

$14.52,

$14.01

ment

creasing evidence that Communist

continued

cents

29, the

he speaks as its president. And in

vestment

portfolio

Ameri¬

leaders, as for
else, the past

everybody

twelvemonth

and

growing

half done, then right now patience
a virtue.

nearly

billion

capital gain

"talking page," bound like an
ordinary
page
into
the
forth¬
coming annual reports of Nucle¬
onics,
Chemistry & Electronics
Shares
and * Corporate
Leaders
..Trust Fund, consists of a new type
of
thin, unbreakable' and com¬
pletely pliable plastic. The records,
made easily detachable by per¬
forations, carry the voice of John
M. Templeton. In the NCE report,

winner,

that well begun is

For

for

Since the passage of the Invest¬

And

eye.

it made any easier

was

$2.9
ran

BY JOHN

valued

Who's Complaining?

200 Berkeley Street, Boston, Mass.

The Commercial and Financial Chronicle

(2680)

THE MARKET

Thursday, December 29, 1960

candidate Honolulu

Gil, were able
with
thoroughly
respectable, gains not typical of

AND YOU

...

wind

.up

their group.

Rails

BY WALLACE STREETE

disinterest
Stock

trading ground toward the

end

another

this

year

week.

And, while the stock market ac¬
tion was the dud of the year, and
there
the

exuberance

little

was

rally; the feeling
perhaps the worst was over
fairly general to give Wall

year-end

that
was

Street at least
It

that

over,

air of hope.

the

made

Polaroid
Texas

market

the

big disappointment of 1960. A year

the predictions of higher and
higher markets were so many and
so unhedged that
there was little
debate over the market surging
ago

that

than

Instruments.

but

nothing

performance

the

last

gained 97 points net

was

when

year's

the

year.

category

keep

may

in weak

broad

financial

the

from

munity also
stock

Absence

their

with

audiences

many

the

compete

and

talent

them.

implement

overt

persuade

others,

noted that

our

the

profes¬

engages

defense

commercial

stock¬

through these stock¬

holders, with certain segments of
the financial community. In am
nual
and
interior)
reports,
in

efforts

should

culture is based

not

are

scepticism
optimistic
social
will

had.

This

moral

countered by
assumption
that

the
the

body, reasoning from facts,
find

action

pioneer

aopeals

and

those

which

directly

the

true

other

and

This is

Today,

create
ment

and

survival

and

which

favorable

healthy growth.
Profits

jthe

public
judgment.

the

final

This,, in turn, implies the public's

able

judgment,

and

Opinion

pfont

motive

paramount importance,

that

what

judgment provides in the form of

authority, opoortunity and privi¬
lege, will make facts available in
order that approvals or rejections
will be a natural consequence of

The

distinction

between

the

the
cor¬

porate community, to which refer¬
ence has been made, has
left the

is
ap

in¬

centive to enterprise, modern cor¬

porate

financial community and

Defend on\

Public
While

doctrine v that
seat

as to
environ-, reasoned appraisals.

manner

maintain

the

right to know-—a right which re¬
'~r quires that all who seek a favor¬

prosperity of a corporation are
strongly dependent on labor, gov¬
ernment, investors, and many of
the other elements of our culture,
working in such

management has come to
that the opportunity for

^preponderance

of power to the

corporate managers. But that does
not

mean

their

that

advisors

stockholders
are

without

and

influ¬

profit is greatly enhanced by the

or power in corporate affairs.
Managements, in increasing num¬
bers. are recognizing that the atti¬

good opinions of people in

tudes

realize

groups.

many

The investing community,

ence

and

equally^indifferent
'
'
"

results.

There
of

is.

course,

resnonsibilitv

.the matter

stockholders.

judgments

the!

financial community are of crucial

can be summarized
quickly:
Foremost, is the point that educa¬

tion

factual

table
of

though

partially

only

others.

investments adequately.

also,

entitled,

investing

audience

formed

bearing

objectives

They

factors

bearing

in¬

kept

significant information
a company's problems,
and

rate

progress.

When this practice is.

administered,
holders
the

feel

can

belief

the

that

methodically
present stock¬

the

secure

their securities will be maintained

affect

information

the nature of the prob¬
result, in a majority of

being

weight

basic

and

values

attached

longer-term

prospects,
rather
than
to
the
interim, non-recurring effects. A
community will be

well informed

important influence in

balanced

broad

and,

securities.

pany's.

well

geographic

distribution of holders

And,

com¬

the

community feels management has
taken

into

properly

its

account

important position in the securi¬
ties
market, the influence and
helpfulness of the community in
the
execution
of
proxies
by
owners'
will
be
promptly
and
justly exercised.
The

ment

becomes

communicate

communications

the

how

then

question
what

one

handled

can

and

assign¬

keeping

witb„,ethical standards. It is here
that
skill
and
tested judgments
are
helpful, because, as was in¬
dicated earlier, a
corporation is
also concerned with groups other
than
the
financial
community.
Thus, circumstances at a givten
time may make it inadvisable to
disclose
all available facts, and
certainly
ditions

circumstances

bear

strongly

ing of disclosures.'

and

con¬

the tim¬

On the other

communications

coin,

is the fact that the financial

com¬

the

side

munity does not want to be bur¬
dened with extraneous detail, from

which

cull

must

pertinent

the

The

data.

specialist who is thor¬
oughly familiar with the require¬
ments of both his corporate client
and
the financial community is
to

able
are

ing

which

facts

to the objectives

of
Experience and understand¬

these

lessen

those

select

germane

both.

requirements
conflict

any

between

the

poration

and

tends

interest

communicating cor¬
its audience in the

financial community.
Elements of

Public Relations

Program
this

juncture

can

con¬

the

sider

specific elements of a
planned financial community pro¬
gram. While it cannot be claimed
that an exact science is involved,
we

have

found

helpful in

our

experience to look upon the

own

responsibilities of the specialist in
financial community relations as
embracing three major functions.
These

are

trative

preparatory

volves four
The

function

in-:

principal steps.

first

with

adminis¬

preparatory,
reportorial.

and

The

for

market

periods

cases,

when> temporary

results,

will

lem

most

in equi¬

adversely

may

operating

are

that the

expect

values.

market

transition,-

obligation obtains here that is
met quite adequately and
effectively by many managements,

nature

likely will be reflected

being

business
,'

the

political

with

handled

maximum

orCimdifferently

course

maze

worked

institutions

economic

aimed

and

have
an
unques¬
of
right Stockholders
competitive tioned right to such information
as they may need to appraise their
contending rvalues.

the

in the

orderly

effectiveness,

premise that moral certitudes

responses

Results

informed financial community
numerous.
The more impor¬

There is

centives for

means

may

thus

and

alone These
premises not only permit,
in helping to conquer a portion ofe
but
actually
demand, thjat the
the wilderness, such lonely trails
various groups within our culture
have, for all practical purposes, present their views and
objective^
passed from the modern scene. for the consideration of the pub¬
Today few, if any, of, us could lics'involved. This concept, too, is
survive for long without the min¬
consistent with the open, nature
istrations of specialists in social of
our
society
and
with
our

Stated

advance

split

society into a num¬
ber of specialized groups which, in
our

of the

causes

known.

well

community, attitudes

vary. Some man¬
inhibited in efforts
to inform, much less to attempt
persuasion.
This
inhibition ' ap¬
pears
to reflect the feeling that
such
activities
are,
somehow,

sional

the corporate
communities,

financial

been

ment.

corporation.
is

unethical ends?

lead

prevail

subject

agements

separation of iden¬

between

the

and

even

only within the compara¬
tively recent past that the finan¬
It

business

aims

own

such

the prob¬

inquiries, in stock¬
plans and policies of the manage¬
market. As a matter of competi-. holder meetings, in a host of other
ment of a corporation will result
tive necessity, and to protect the ways, corporate management acts
in reasonable prospects for prof¬
to
inform
the
interests of those- for whom man¬
investing
com¬
its, as well as the probable en¬
The question, thep, is
agement is a professional steward, munity.
hancement
of the value of the.
whether
communications
to^ the
this
group
adopts programs of
savings of investors. This, then, is
communications
to
its
relevant investing community
are
to be

participate and produce.

Investors'

Reach

this

than

manner.

able
-

op¬

by
progressive
win the under¬
standing and acceptance of the in¬
vesting public are most logical.

actions
management to
erates,

To¬

day, if new capital is to be avail¬

its

the business

fi¬

for

relations.

nancial community

relations?

they hope to gain? Are such ef¬
forts justified? And what, in gen¬

motivation

first

the

here

efforts

the

unsound

We find

of many people.

proval

make

their

circumstances,- corpo¬

has become increas¬
dependent
upon
the ap¬

ingly

owned

community

And—he

streams

rate progress

corporations
undertaking planned programs in
financial

fi¬

•

these

might ask, for example, why

publicly

small

many

of capital.

might raise

observer

several questions.
He

medium

savings into very large reservoirs

today

are

the

through

nancial institutions which brought

capital

but their funds also became

Commun i t y

munity,

opportunities.

appealed to by direct means,
avail¬

were

Financial

Relations.

become attracted

would

Thus, these new sources of

Methods

—

these investment

and

—

dispersed as .they were,
possession
of
varying

and

the

that

capital

holders

new

widely

pre¬

sentation
title:

naturally,

quite

followed,

chosen

for

larger

groups, a measure
at the least, tacit

Beneficial

The benefits to be realized from

financial
with
the
community
informed,
resultant risk of experiencing in¬
the

keep

creasing number of people began

management's

market.

tant

being
that

circum¬

it becomes an issue of
growing importance for corporate
management to establish compre¬
hensive policies and procedures in
dealing with the total financial
stances,

are

Stockholders Support

these

concerned.

all

money

atmosphere.'

in the best interest of

munity is

new

Perhaps equally important, it is

pating directly in the management
of corporate affairs.
Meanwhile,

probably is the least
established
of
corporation

misunder¬

indifference,

had little or no interest

what

cost

form of insurance—insurance

awareness

volves

the

attitudes, if permitted to develop,,
to any marked degree, would im¬
pede or negate * corporate plans

instances these investors
in partici¬

In many

specific area of the business
scene
to be considered here in¬

The

increase

can

viewed

are

ob¬

Also, it has become common
knowledge that negative attitudes

dif¬

impossible to

tain.

More and more,

communications

against

involved

directed

sometimes

and

have

standing, and even hostility. Such

analysis

provides a step-by-step procedural
in planning a program.

and

program;

which

motivations

communications

such

imperative for dhe latter to
reach the former through public relations. This is so, Mr. Mellott
points out, not only in terms of the profit motive, raising capital,
creating and retaining investors1 interest but even in obtaining
favorable public opinion.
The experienced specialist outlines the
consequences apt to result from failure to keep the financial com¬
munity properly informed; sums up his views as to the standards
that should comprise the foundation of a financial community relaporate community makes it increasingly

tions

the

ferent audiences.

of the financial community from the cor¬

The growing separateness

success. It is here,
then,
find both the justification

prompted
business
to
establish
and employ different channels of

Relations

Advisors in Financial Community

Thursday, December 29, 1960

importance
to
any
corporation
seeking new funds in the capital
market.
They have seen where
negative attitudes can render new
financing
exceedingly
difficult

as one

Whys and Wherefores of a
Public Relations Program

these

confer¬

management
at levels which reflect fair values.
clarify major objectives.
Here
we
may
find special interest in
Then, there is the position of
the financial community, viewed 1 only one primary corporate aim,
or
there may be a number .that
somewhat apart from the regular
can be specified
as near-term or
investing public. In more recent
years the financial community has longer range goals.
Step two involves a depth study
been requesting—and
in an in¬
of
the
corporation1. This study
creasing number of instances re¬
ceiving — pertinent information may require 30 days, or it may be
concerning the affairs of publicW sufficiently involved to consume
60 or even 90 days. «The important
owned
corporations.
The' rapid
increase in the number of security purpose of this study is that by
ence

company

analysts

and
brokerage
house
departments, as well as

reserach

financial

institutions

fessional

management,

the.

under

pro¬

attests

increased

such
be

both
cial

means

compiled

the financial
assets

sophistication and
knowledgeability with which in¬

tion

and

will

made.

decisions

Therefore,

effective-liaison
rations

and-

the

are

being

some measure of

between

corpo-'

financial'

com¬

The

the
data

for

the

step is the prepara¬

confidential

findings
thus

third
a

can

reflect

non-finan¬

and

liabilities

company.

vestment

record

factual

which

the

assembled

report

management-study

The
presented
and joint

studyis

192

Volume

Number 6016

Commercial and Financial Chronicle

The

(2685)

discussion.

its

final form

the

becomes

report
which

pool

this

from

These

should

reports

their responsibilities honestly and
fairly. The growth of financial

made

available

promptly to the total list
financial firms, comprising a
communicating
to the financial com¬ company's
selected
distribution

draw

the company

munity.

community relations
as a case in point.

jectives established in the first of
these four preparatory steps.
administrative

The

Timely bulletins on new de¬
velopments, or on special aspects
of corporate activity, are helpful
in maintaining continuity of in¬
terest.
Special letters are desir¬
able at
times, especially in in¬

activities

stances

responsibilities may vary, depending upon particular require¬

sions

and

Selection

;

the

client company.

audience

the

for

communications
becomes the first responsibility in
of

purpose

administrative 'effort."

the

This

national in scope, will
a carefully screened list
Of
security
analysts,
registered
representatives and partners and
audience,
comprise

where

marked

sales

technical

the

and

financial

community,

be¬

pany

with

community,

natural

the

client

would

basis

for

interest

Included
analysts re¬

company.

security

sponsible to their firms for fol¬
lowing the affairs of an industry

one

way

with

which

tions

active interest, but
in the future develop in¬

terest,

asked for

investors
1

may,
on
occasion, be
opinions by prospective
present stockholders.

Undertaking Communications
Communications

can

£e

now

It is

munity

volume,

financial

program

the

for

first

planned

financial
time

action

means

advisable
to make available at the outset, at
least on a selective basis, a fact
manual on the company.
Such a
should

manual

jective

represent

condensation

ob¬

and refine¬
study and

ment of the confidential

client

corporation
referred to earlier.
Thoughtfully
prepared, this fact book serves a
dual purpose. First, it provides to
the financial community in one
the

report

presentation the significant faqts,
oriented to the requirements of
the

community.

manual

serves

convenient and

as a

com¬

uable

element
active

ceptance of

communications

The

from

this

function

point employs two dis¬
One

tinct methods.

is direct

con¬

tact with members of the primary

and the other is the distri¬
bution of written or printed ma¬

group,

the

double

first

Public

volume

are

direct

the

Involved

function

contact

across-the-desk

in¬

terviews with interested members

Trans¬

1952

and

—

general

The

financial

involves

banks

and

of institutional volume—40%.
This

the

than twice that

was

mutual

runner-up,

Equally

important,
the
group
meetings, as with the across-thedesk individual interviews, stimu¬
questions and thus an oppor¬

There

municating

dimension

company

for

to the fi¬

This is the pro¬

nancial audience.
vision

responding to

specific

questions initiated from the com¬
munity

nature.

activities

involving

Current

communica¬

tions progress, these inquiries tend
to increase.
It is not unusual for
these
in the

number in

course

Written

variety

would

the hundreds

year.

discussion with

take

Copies of an¬

10th
con¬

first

full-scale

institutions'

exami¬

and

inter¬

activity in the market
two-day check in June,

1955.

(Part I of the 10th PTS

Institutions held

the

last

come

this

entire

Exchange list.

stocks

representing

17%

the

include insurance

are

value

the

Institutions
investment

and

few words

part

The

ous

pace.

lines

than

the
of

On the

tion

our

society

mav,

are

material

have done a
job in trying to discharge
and

few

other hand, the propor¬

volume

been

and

accounted

for

broker/dealers

.by
has

declining steadily since 1956
reached

year.

The

low

report

the expansion

facilities

11%

price

age

for

New

York

New

total

Exchange
period.

volume

York

the

for

volume

new study, with about 90% of
this coming from New York City.

Foreign countries

counting
3.1%

for

from

vidual

—

next, ac¬
including

Canada.

Among indi¬
Massachusetts ac¬

states,

counted

for

8.1%

—

were

11.3 %

sizable

than

volume

90%

attributes

the

public here

Corporate
pension
or
profit
sharing funds had the largest in¬
-

dividual
among

net

purchase
balance
institutions and interme¬

diaries buying and selling on Sept..
26-30.

This

shares and

group

sold

bought

288,000

68,000 shares for

the

years,

portion of Southwestern Pacific's

E.F. Hutton Co.

To Admit Two
F.

Hutton

Broadway,

New

Company,

York

City,

61
will

admit Robert H. Stovall and John
A.

Dyer

as general partners next
pending approval of the

month

New

York

Stock

Exchange, it
by Theodore
Weicker, Jr., managing partner of
announced

was

the nation-wide securities broker¬

firm.
Stovall

will

continue

of the investment re¬
department where he be¬

manager

gan as an analyst in

1953.

Mr. Dyer is scheduled to repre¬
the firm on the floor of the

sent

New
has

York

Stock

been

Exchange.

floor

partner

with

Bull, Holden & Co. in New

York

for the last

seven

years.

to Open
Chicago Office

Second
Board

CHICAGO,

111. —Opening of the
brokerage office on

street-level

Export-Import Bank of Washing¬
ton, and Reed O. Hunt, President

Chicago's "Magnificent Mile"
(Michigan Avenue north of the
Chicago River to Oak Street) has

of Crown Zellerbach

Corporation,

been

have

directors

been

elected

General Reinsurance
it

announced

was

Cathcart,
Board

James

the

Executive

Chief

and

Corporation,

Chairman

Jr.^

Of¬

ficer.

announced
by
Company.
Seymour Fishman,

of the

manager
area

resident

Greater

Chicago
firm, said the office

for the
in

—second

Westheimer

Chicago

for

heimer—will be opened

West¬

at,934 N.

been Assistant Secre¬
tary of State for Economic Affairs

Michigan Avenue, Jan. 10.
Erwin B. Arvey has been ap¬
pointed manager of the new office,
Mr. Fishman said. Mr. Arvey pre¬
viously had
been
a
registered
representative at H. Hentz & Co.

(1953-1955),

here for eight years.

Mr.

Waugh has been President
Export-Import
Bank
of
Washington since his Presidential
appointment
in
1955.
He
had
of

the

previously

States

Deputy

Under

Sec¬

Alternate

Governor

the

Monetary Fund and

The
the

Michigan Avenue office is

first

plated

series

moves

similar

away

contem-®

International Bank for Reconstruc¬
tion

Mr.

from
district,

the LaSalle Street central

and

Development

1958, Mr. Waugh,

Ambassador,
President

(1953-55).
as

accompanied

Nixon

his

Special
Vice-

visit

Fishman

said.

Westheimer's

first Chicago office

at 134 S. La¬

Salle, opened Sept. 15, 1958, will
to be managed by Mr.

continue

Fishman

South America.

dent

Hunt, who has been Presi¬

and

Chief Executive

Crown Zellerbach since May,
1959, recently served as Executive

ference

the

President's

Occupational Safety in

(Special to The Financial Chronicle)

BEVERLY HILLS,

Financial

Charter

assuming

his

responsi¬

conducting

Waugh

from offices at

spent

private

Drive.

years

banking industry.
leave

Trust
and

He is presently

director

Officers

are

Vice-President ,and

Neb.

Samson

Citizens

State

1953.

Cashdan,

Bank,

and

Secretary;

He joined The First

and

Lee

Company of Lincoln in 1913
President from 1946
.,

First
is

business

Sydney

Taper, President; Clyde S. Diffen,

First

the

—

110 North Doheny

of The

and served

the

Company of Lincoln,

Lincoln, Neb.
Trust

Calif.

Corporation

securities

bilities in government, Mr.
many

for

First Charter Financial

Con¬

Washington, D. C.
Before

ex¬

Officer

Director

hi^

manager

addition

duties as
Greater Chicago.
panded

Mr.

Community.
1

been
several

Westheimer

Samuel C. Waugh, President of the

this

of member firm

serve

has
for

this

originating in Boston.

Named

who
field

The

Pacific

accounts.

age

accounted

institutional

President,

Mr.

State

this

and abroad and the trend by nonmembers
to
join the Exchange

for

acutely aware of their obligations
than the managers of our

new

non-member

ours,

periods, be less definitive
we
would wish. But few

during the current
study was $46 per share, com¬
pared with a $37-per-share aver¬

investors

volume in the last several studies.

meet

Because change

responsibility

trust

and

high of 40.1%
of institutional volume, and mu¬
tual funds a high of 17.5%. These
two groups have been accounting
for
rising
proportions
of
such

rapid, and sometimes
altogether clear in direction,

brief

banks

individual

for

—transacted

has been so
not

termediaries

International

handled

change has been rapid and it can
be
expected to continue at an
accelerated

price
of shares
by institutions and in¬

average

transacted

Building.

Southwestern

non-finan¬

retary of State (1955), and United

man¬

and

this culture

volume

companies-—including orders they

con¬

community and to society

large.

The

funds,

December,
1954,
show
a
steady upward progression for the

responsibilities to the vari¬
groups
dependent upon the

business

institutional

since

its place has

corporation

24%

figure compared with 19.4% in
June, 1955, and 24.6% in Septem¬
ber, 1952, the only higher percent¬
age in the series.
Seven studies

Commercial

attitude

understand

and non-member

broker/dealers—channeling orders
through the Exchange.

honest and earnest effort

organizations—
commFVcial banks,

principally

from

way

univer¬

and

insurance companies,
non-life insurance companies, cor¬

institutional share of total volume.

conclude

damned"

non-member

trust companies

colleges

Bank

-will continue to service the major

Waugh and Hunt

year,

about

Remarks

century. In

the

lot

study

investment companies — 300
Next with 200-share me¬

approximately

$50 billion worth of listed

representatives

round

current

office,

Con tin ental

was

published last week.)

business community

better

of the

Study

by the Exchange since 1952
the

since

con¬

long

come

"public

holders

category.

mediaries'

has

wealth,

one

Transaction

earlier

business. The

nual and interim reports to stock¬

represent

number

study—Part II

nation

cerning the managers of American

grouos

communications

forms/

the

—was

firms.

Concluding

median

Fort

Worth

Ligon

securities

shares.

only

The

planning
for the annual meeting of stock¬
holders—the preparation and han¬
dling, where desired, of financial

of financial

by mutual funds and closed-

such

ducted

community—assist¬
in the preparation of reports

members

number
.

largest

36.4%

Public

financial

their

another

in¬

bearing on a company's rela¬
tions with, and responsibilities to,

and

end

third of insti-

transactions.

community

arranging of

The

3.4%

ters

the

earlier, 3.4%
transactions.

the

former

indicated

Ford

account

executive in

num¬

of shares traded

tional share volume but

the direct contact method of com¬

1,000 shares

and pension funds? Intermediaries

agers
..

accounted for

National

and,
of the

Pa¬

Parker,

900

over

South¬

cific President,
has joined

transactions.

and

western

actions made up almost all of the
rest of the share volume—32.6%

same

Included

management

tunity to respond.

Blocks

is counsel to management on mat¬

between

Scott

f d

Ligon,

P. H.

Stock

funds.

which I shall not detail.

news—and

institutional

1,000-share

were

Mr.

s a

trans¬

trust

were

companies, savings banks, educa¬
tional and religious organizations

stockholders—and

600

10.5%

cial corporations, foundations and
hospitals.

their lowest point in

activities

ance

The

President.

pension

when

average

other

the

Lots

made

number

porate

time

responsible
for the largest single segment

responsibility for providing
a company in

area

the

life

companies

service assistance to

the

56%

were

—

prices

Commercial

Scott,
Parker,
Ford

tutional transactions.

ac¬

company among

with

of analysts, or regis¬
tered representatives.
Both pro¬
vide an opportunity for present¬
ing the highlights of a company,
rls operations, markets, manage¬
ment
abilities,
the
company's
record of performance, and "Spe¬
cific information bearing, on its
competitive position and outlook.

and

for

transactions.

was

year. This was evidence of
the stabilizing nature of insti¬

creation

500

51%

for

com¬

100,000.

ferences

groups

the

accounted

100

sities,

million

reached

community,
if: it is factual and meaningful,
frequently will be incorporated,
in whole or in part, in reports
issued by financial firms to their
customers. Thus, significant added
mileage is obtained.
Many such
mailings by a financial firm will
reach a figure of from 10,000 to

financial firms,
and the arrangement for meetings
representative

Transactions of from

transactions in

stock

carefully

awareness

firm,
accord¬
ing to Charles

had

dians

3.6

made available to the

terial.

late

this

they
sold
in
the
five-day
period—3.9 million shares vs.

vestors. The corporate information

relations

pany.

In actual share

Institutions purchased more than

designated re¬
port meetings. These report con¬
ferences also provide opportunity
to keep current with company op¬

Second, the fact

helpful file reference on the
;

Fort Worth

securities

•-

volume and almost 3% of the

24%

lower.

management at

also

ber

Study

when

re¬

community often is
productive of another val¬

program,

Southwestern

total of 829,000 shares trans¬

national

the

balance—37,000

intermediaries

for

its

made

erations, developments and out¬
majority of instances where look.
company is being introduced to,
'The
communications
function

the

number of shares they bought
and sold when the Exchange

regular

and transmit these reactions

assess

the

sales

about

and

total volume.

undertaken.
In

transac¬

Sept. 26 through
following:

accounted

responsibility of the ad¬

ministrator of

acquired

Pacific Corporation,

acted.

mar¬

actions

less

who may

the

Institution

frequently involve opin¬
or industries of
which the client ions, either critical or favorable,
is a member, and representatives of company policy and practices,
of
financial
institutions
holding its ability to compete and show
the client's securities.
The sec¬ progress, and often reveal an ap¬
ond
and
larger
group
includes praisal of management's ability
those who might be expected to based on past performance.
have

institutional

from

revealed

com¬

These

company.

just

Non-

and

is maintained,
disposed to voice their

reactions to

—
Parker,
Company, of Dallas, has

shares bought and sold by institu¬
tional
investors
on
Sept. 26-30

•

WORTH, Texas

Ford and

than

transacted.

analysis

contact

are

net

FORT

net sales balance

broker/dealers

large

the community is not a
street. Members of the

personal

usually

commercial

Funston, President of the
Exchange, said a special five-day

Specialist

communication

it is separated into primary
secondary, groups.
The pri¬
mary group is made up of those

in the stock

side,

126,000 shares out of
million

member

Exchange

Keith

brings us to the third func¬
tion of the specialist in financial
officers of financial firms. In total
number, this list may range from community relations; namely, that
of
reporting to client company
2,000 to as'many as 5,000 names.'
In the process of establishing this management.
and

Stock

ket.

This

list,

York

tional investors

The

has released a new study docu¬
menting the key role of institu¬

understanding.
Function

sell

The

it will contribute to interest

The

the

In Stock Market

found appropriate for distribution

cause

companies, with 126,000
shares; non-financial corporations,
with 124,000 shares; and mutual
funds, with 45,000 shares.
banks showed

New

Parker, Ford Co.
Absorbs SW Pac.

surance

INST. Investors

changes

literature

Busi¬

significant piece of

by Mr. Mellott before The

of Graduate School of

Administration, Harvard University,
Cambridge, Mass.

developing in a company's
operations. Also, there are occa¬
when

Club

Other institutions with net pur¬
balances included: life in¬

chase

ness

may be

ments of the

♦An address

Finance

purchase balance of 220,000

shares.

be cited

can

list.

Step four involves the planning
of the program—the tailoring of
activities and projects to the ob¬

net

dents;

Barry

Goldin,

Ruth

Secretary;
man,

and

Treasurer;

•

Vice-President
H.

Taper

Vice-Presi¬

Stegal,
Morris

Assistant
A.

Assistant Treasurer.

Stein-:

W»1

w i«t

The Commercial and Financial Chronicle

(2686)

■>

What's in Store for Economy
And the Insurance Industry?
mains to be seen. In my opinion,

its relationship
in
which the attitude of the Federal
Government toward our business
understanding of

to the Federal Government; one

has

shown

some

improvement. It

this background that we

is against

future.

view the political

let
let

First
b irst

us
us

interest

take
tase

a
a

at
at

the
tne

there

and

atism

are -

conserv-

also

two

distinctdjvisi0nsofcut across party
views
liberal thought.

These

particular

Kennedy has

Mr.

us.

look
iook

promises

concept

Campaign Promises Facing Us

campaign

too much emphasis can be placed
on the conventional liberal a
conservative labels. They have
]fos^ some
their original meanfrom a political point of view,
Today there are at feast two
schools of thought included in the
traditional

these

pubbc interest is best served by
strong opposition to practically
the economic field he has prom- every
proposal to expand govised to lower interest rates, to ex- 1 ernment activities.
At the same
pand the economy at the rate of time there are those conservatives
4 or 5% a year and to accelerate who recognize the need for a reaactivity in home building
and sonable amount of government
public housing.
In the field of participation in the solution of the
taxation he has promised to con- vexatious
social and economic
centrate on tax loopholes.
problems of our industrialized
Additionally, of course, he has economy. This brand of conservpromised to support the Demo- atism nevertheless emphasizes
cratic
platform.
I cannot pass and relies heavily upon the enterover
that platform without com- prise system and individual mitiamenting on the distortion of the tive for ultimate solutions,
word "right."
For example, the
The two schools of liberal
platform mentions the right of thought that have developed with
improvements in the old age
In

some

and survivor insurance system.

ever/

worker

remunerative

to a useful and
job; the right of

farmer to a decent living;

every

right of every family to a dehome; the right of every
child
to
a
good education; the

the

cent

of aged persons
quate medical care.
right

\ Ate thS&'fights?

They

are

which

Certainly not.
than targets

society sets its sights.

too*

All

ade-

frequently

try to
direct gov-

achieve them through

guarantees rather than
through individual initiative and
ernment

stimulated

enterprise

sound

government leadership
platform seems to say that

every

individual is entitled to the
everythmg as a matter of

best °f

Birth is the only qualifying
This is a
dangerous

right.

condition.

philosophy.
deteriorate

A nation is bound to
if the industrious, the

strong, the creative and the selfreliant are forced, to the point of
discouragement,

conditions

ding

provide ideal
for those who

not

are

can

take

some

comfort,

in realizing that the
Convention platform is one of our
most exaggerated forms of political
hokum.
It
often
employs
license
beyond
the
bounds of
honesty. Moreover, the distortion
of political principles
is not a
unique characteristic of the 1960
platforms. This form of political

however,

observers

seem

agree

will

that President-elect Kennedy
use

thej powers of the Presidency

Roosevelt.

reminiscent

manner

Franklin

re¬

has

been

time.

long

with

for

various

statutes,

control

broad

nedy will do
which

has

been

one

features

standing

the

so-called need is established. Second, there are those liberals who

want the government to do almost

everything on the Jbeory that it
?an do a better job. They
forward to a vista of endless maProgress in which the state
wdl Play a larger and larger role
and a general equality of_c d J1®11 will be enforced. U d basic

types

ute

mistrust

the

to solving

materially

the is-

Program

what

An.-,'

political parties
forthcoming session

are, in my opinion,
meaningful. The boasts
Republicans that they
will block various legislative prolar£ely
a

Congress

not

very

some

ial!*™lection-camSimilarly the boasts .of
patgn.

J at

low

•

;

that the Mills-Kerr

granted

this

ating

latter

with

contact

various
the

and

the

and

Congress

agencies.

of Congress

case

direct

governmental

this type

aggressive
leadership
could
lead to a greater degree of sub¬

mission,

tactful

not

are

if the Kennedy forces

of his

some

resistance

determined

result

could

vote

record,

the

taken

House

action

plan.

The Ways

consideration

tracted

impression that there

This is

direct

the

will

Means

voted

the

out.

circumstances,

not

would

bill.

has

been

will

invasion

Other Influences

exten¬

leisurely.
Many reasons are being advanced
for this
revision of plans. ; The
,

I
suspect, is
election cam¬

underlying cause,
that following an

this

the
the

instance
depression and

are

}ativet af?ion; Many of them beong to the-;;we want government
more wing of the liberal
group Consequently, it is argued
fhat the pressing welfare prob'ems of the congested areas will
be more vigorously pursued and
may receive more sympathetic atJention from the new admimstration than in the past,

are

undoubtedly
the

major factors which

attention from

diverting
frontier.

attitude

the

toward

result
for

may

expect

defense

pres¬

spending

the

argument.

Kennedy cannot help

Mr.

but realize,

that the southern elec¬
votes
were
decisive,
and

however,
toral

therefore

attempt to exert dis¬

on the south¬
coalition is not
anticipated.
To the contrary I
believe
that the Kennedy team
will
avoid
open
attack on the

ciplinary
ern
wing

coalition

pressure

the

and

reappraisal
extensive

will

concentrate

during
of bid

1961.

could

mentioned

deficits

tion.

Moreover,
there

not

may

This

see

innovations

does

not

rule

legislative business such

outlays

continues

legislative

budget

to serious
infla-

the

will

recession
be

pump

priming.. This implies little hope

Tax Attention

America.
,

the

believe

fluid

offer

care

issue

basis

for

one

can

vanced

insurance

that

too

either

business

its position

conviction;

vigor and

1QR1

li.
'some-

placed,

bear¬

four

minimum

relief

cept

the

wage,

for

medical

frequently
campaign —

programs

aid to education,

A New Cost Realism About OAS!

time

ex¬

■

we will find plenty
keep us busy in the tax field. :
general revisions of the per¬

Nevertheless,

to
As

sonal
tions

income

estate

and

the

tax

will

see pressure

way, we

code

less- favorable

for

tax

sec¬

get under¬

develop ;
of

treatment

insurance,: The KeoghSmathers- Self-Employed Retirement : /Bill
may ; eventually
be
personal

tend¬

but

•
-

;

The

be:; re-examined.

the demands for more and more

revenue

down

proposed.

tration's
no

The

social

that

security
floor

basic

be drastically

Adminis¬
policy gives

new

announced

indication

the

role

in
providing a
protection should

intensify, so will the ef¬
loopholes, to cut
various tax exemptions

to; plug
on

and to limit the deferment of tax¬
able income.
More

What

changed.

Insurance

Federal

Regulation

action

may

important expect in the field of regulation?
change in the Social Security Sys¬ To me it seems reasonable to an¬
tem during the past decade has ticipate that our problems in this
been-:the end of what might be area will increase. The Chairman
on
called the "easy financing" era. of the Senate Subcommittee
In
1950, Social Security seemed Antitrust and Monopoly has stated,
almost free to the American peo¬ although thus far only informally,
ple; it hardly seems so today. In that the insurance study will be
the

Perhaps

1950

uled

yelps

most

be liberalized

continued

Today's sched¬
increases
elicit pained

gation. of

the law

almost

and

these and

doubt whether extreme action will

Ex¬

will

forts

areas

items

will

look at the old

direction,

that

ency

aged.

for such

There

benefits?

the

for

sions

and. survivor

depressed

care

withholding of income taxes by
section of the companies on interest payments to
policyholders and benefi-j
Social Security Act. What can we their
ciaries will be urged. In general,
expect — overliberalization of
Now let's take

age

could

painlesly.

tax

from

view of the

now

been

- An investi¬
insurance has

next year.

health

mentioned.

Rumblings of

possible life insurance investiga¬

established Con¬

tion have been heard on the House

many/

taxpayers.

„

gressional - policy of. maintaining; side. Other"suggestions of studies. .v.
v
Social Security on a self-support- and regulation: are almost certain
On the other hand, President¬
to come.-::*-v.V* .•
•*.■ ;
elect Kennedy promised that the executive branch and ingn basis, it will be more diffi¬
Ours is a business affected with
every
eff0rt would be made to strengthening the President's posi* cult to liberalize benefits in the
future than in the past. The dan¬ a public interest. Our product in*
•
a^ieve a balanced budget. And tion with Congress. Both of these
the Eisenhower Administration jobs: are looking more- difficult gerous period of "actuarial imma- * timately touches the lives - of al* 'V / x
budget for fiscal 1962 probably - than they were made to. appear turity?-: in*1 Social Security;; has- most all of our nation's 182,000,000
drawn to a close.
people; Our investments are of
wiU be tight, which means a during the campaign..
budget in the neighborhood • of
to the 4 \
To put this general idea in fig¬ fundamental .importance
Aged Medical Care Issue
national economyThese and other $80 billion for fiscal 1962i This,
ures, in 1950- the " wage taxes col?
for holding

spending in check.

housing legislation, 1961 may well
be a year devoted to reorganizing

^fn

° ignore the.

confront Con-

quarters

reliance

the fact that Congress could aet as a psychological; yard? : Of the four domestic measures lected.. exceeded Social; Security
slightly more conserva- stick to stiffen resistance to over*- just referred to, we are: most di¬ disbursements by. about $1.6 bil*.
tive as; a result of the • election, spending, The-economic situation
rectly-: concerned with: the pro* lion, which.was erroneously looked
Whether the--change im its mem*" alone may make- it
necessary to
posal to provide ♦ medical cafe: for upon as money that could be used i
bership .'.will be significant in delay .acting on some of these the l aged: as a matter... of i right to; financec more;generous /bene*,
terms of legislative results re- ^election spending promises. It is under
the Social
Security Act. fits: In 1960, by contrast, the wage'

will

time

Broad legislative
action; regarding
corporate
taxation will focus, however, on
other types of institutions, for ex¬
ample, mutual fire and casualty
companies, mutual savings banks
and cooperatives.:
;

view¬

predict results with cer¬
are counted.

personal

from

;

perfect the
tax law will be ad¬
or

perience is gained.

way

tainty until the votes

with

clarify

new-company

must continue to press

company

The

ments, to

pessimism. In a con¬
troversial question of this kind no

optimism

emphasis.

conclude

can

medical

shift

income taxa¬
problems in this area
will be mainly regulatory. Amend-

political situation with respect
the

see

insurance

tion.

business.

Mutuals

There will be less attention to life

tg,

effective

presented

will

the field of Federal taxation

mandate"

"no

the

and

eco¬

goals and social objectives.

bination of demands for additional

add

There will be

Democratic coalition, ing in mind 'that medical care
The Kennedy forces do not seem ^ for the aged is an emotional issue
to attach very much importance and is
extremely sensitive from passed,.but with substantial variato their failure to gain a majority a public relations standpoint.
tions from its current form. The
of the popular vote.
tax treatment of corporate pen*
They reject
Republican

out, however, the reconsideration

realizes, this com-

everyone

advocated.

usual

of the conflict between sound

point, p£., the,.^personal, jp-syrance

The

also has been

there

which

particular

for

association

particular

pay

the

tors, difficulties and realities. And

Association

ance

the light of many fac¬

sidered

must

participation

real hurdles in

recon¬

promises

paign,

change

Another viewpoint frequently
expressed is that minority groups
in the large cities swung the election. If this is a correct conclu¬
sion the large city politicians will
exert a greater influence on legis.

less

and the pace more

sive

and

pushed

nomic

face

shift in the grand strategy

the

certainty.

in which innova¬

will

post-election

basic

apparent

the Administration

that

the

know

vote

raise

proposals for liberaliz¬
ing and supporting existing Fed¬
eral programs as well as new pro¬
posals for a central mortgage bank
facility, a "middle income" hous¬
ing program, the sale of deben¬
tures to finance veteran's housing,
etc.
There will be a sharpening

and

Under

House

Ways

area

government

the

housing

in
one

will

tions

pro¬

this type

1950

•

any

levels.

activity

not

hopeful indications that the

granted a rule
legislation
had

ment,* and
pronouncements
by
Congressional leaders make early

House Rules Committee would not

have

Congress

housing field.
Campaign statements, the current
rate of housing starts, unemploy¬

Forand bill and rejected it. There
were

since

Housing Push Plans

Means

pro¬

Now I turn to the

medical

gave

that

time

first

the

year

benefit

threat

was

and

however,

Forand-type
Re-Evaluating Economic Frontier

vote

have

rates

when

year,

for

election

next year.

this

refused

that the

compulsory

tax

the

increased*

are

posals for tax increases are po¬
litically unpopular. This situation
was
reflected
in
Congressional

pro¬

Presidential veto, which will

not be the situation

Congressional

must be raised

evalu¬

action transpired under the

how

objectives.

I have the

44.

in
basis

are

current

reached such high levels

among

defeated 51 to

was

$11.7

new revenue

Moreover

enough. The dis¬
them arose

not

was

agreement

last

pay-as-you-go

benefits

this
for

long

under

and

$11.4 bil¬

insufficient

gress

ticipated in the debate
subject
seemed to
take

policy

of thelSenators who par¬

number

Committee,

Possibly

developed countries.

the

will do in the

billion..

came

was

disbursements

the

effect

unnecessary.

was

care

delegation

new

and increased assistance to under¬

Likewise, during the transition
of national
leadership, forecasts

plan

gram

cover

additional Federal medical

care

which

lion

Senate

the

collected

taxes

the

diffi¬

great

convincing

less

certain specter of a
enterprise gold
loss to'v other .nations

gueg

Road for Kennedy

hower Administration. This means

is'a

system and its ability to contrib-

sures

No Easy

experienced

that

out¬

Eisen¬

appointment.

sion

culty

should be borne in mind

Ken¬

Mr.

with the Presi¬
team
concept

away

staff

that

are

power

influence.

Indications

dential

rather

but

ob-

political

Many

legislative record on this subject
indicates that during the last ses¬

portedly has given much thought mainly Witji respect to the method
to
the
question of Presidential to be adopted. Thus the method
powers. He views them not as con¬ Mr. Nixon supported was defeated
fined to those expressly granted 67 to 28. The Social Security ap¬
under
the
Constitution and
the proach
Mr.
Kennedy
advocted

It is also contended in some persuasion in
getting
domestic
quarters that the waning prestige bills enacted. Along with per¬
servers believe that it should be
argument advanced in the great suasion will be coupled the use
abandoned
because
it
leads to debates generated considerable of patronage and the pork barrel.
cynicism, distrust and cruel dis- concern for our future security.
On
the
basis
of this type
of

folklore

examination

careful

Thursday, December 29, 1960

advancing its pro¬
posal in either body, and par¬
enunci¬ ticularly in the House.
growing intensity in recent years
ated during the campaign.
The ■_■! This past year, the American
are, first, those who favor peralleged need for mapping a new Medical Association spearheaded
sonal initiative and the enterprise
economic
frontier through a the groups opposing the Forandsystem, but who have little hesitancy
about
employing direct greater utilization of govern¬ type bill. In the health insurance
mental power is presently being business leadership was provided
government participation once a
re-evaluated. It now appears that mainly through the Health Insur¬

eralf of'boto"

The

short and
Most

with

Undoubtedly, we will
promises divided into
long-range objectives.

capacity.

constituting

Within the definition of concare
to the Social Security pro- servatives
there are^ those who
gram for those retired on Social resist
change out * of an almost
Security pensions and also make doctrinaire
conviction that the
he would try to add medical

said

terms

pursue

without evalua¬
overall budget

and

vigor
in

tion

see

Continued from page

will

objective

announced

every

the

that

assume

Administration

new

equal

■« i

unreasonable

increasing\in-.
of
our
business jon the part of the;
national government,, perhaps not
so mueh in; connection with our'
d^linrgScWith. our policyholders as" :
factors suggest .an.,

terest :ih the regulatory aspects

Mat. ,1

' V.r

♦.

£•*;

with

Number 6016

192

Volume

investments

our

The Commercial and Financial Chronicle

innovation.

their

and

senior

relation to the national economy.

In many companies a
will devote almost

Kennedy's Economic Views

(1) a faster rate
of economic growth, (2) full em¬
ployment of labor and other re¬
sources, (3) "reasonable stability"
in the price level.
Few would
quarrel with these objectives. Our

tial

stringency as
of curbing

powers

; terest

than one-third

the

tools?"
credit

selective
it

the

that

conduct

securities?

ment
•

regarding
have

; at;

times

s,their?prices
their

yields .and

pend

available

• •

•

lying

question .' of whether.*. Mr.
Kennedy will actually seek to im¬
pose his economic views on the

•

authorities.

Reserve

published

statement

required

role

the
•

removed

from

political pres-

But in the same'statement

sures.

suggested that the Federal
Reserve Board should "cooperate"
-

was

With

President

the

the* long-

coordination and

range

which

direction

posals

for

government

tion.

word

"cooperate" with
apprehension.

able

consider¬

view

highly condensed
future, when coupled
past experience, leads

of the

with

our

to the conclusion that

proaching
be

are

which
relatively

new

dominated

era

ap¬

will
new

problems, and which will focuse
increasing attention on the rela¬
tionship of our business to a com¬
plex of national objectives. The
issues

numerous

national

and

•

■

iAs

the

claims

Washington
aged
face

often

that

one

hear

of the

many

medical

costs

the

average

in¬

dividual

over
age 65 are in the
neighborhood of $177.00 for all of
his health care expenditures. We

also have

life

the

social

and

American

the

people. Not one of them can be
effectively considered in isolation.
Many of them grow out of this
country's struggle with the Com¬
munist

world.

appears that action
tic field will

and

mote., it

in the domes¬

involve these inter¬

that

decade

the

ahead

lies

our

nation will be forced to adjust

many

ties.
ness

conditions,

new

and

problems,

new

The personal

new

responsibili¬

insurance busi¬

will likewise have to accom¬

modate itself to new circumstances

fraught with political implications.
I seriously suggest that we will
necessarily be more active in the

political
This

field

will

that

require

the

past.

careful

planning, better communication
•within
the
business
aridv ihore
time

devoted

better under¬

standing of developments as they
I believe that our minds

unfold.
will

challenged

constant

purpose

greater vigor,

even

contend

that

govern¬

frontier

that

ahead

knowns

only

the

lie

—

opportunities to capture

—

medical

of this

figure. How¬
do not know the circum¬

excess

stances

annual

who

that

one

person

encounters

these

out of
higher

sured, living alone, retired, in an
institution, etc. This information
is essential to any objective con¬
sideration of whether aged indi¬
viduals with these- higher-thanaverage medical expenses can or
cannot

their medical bills or
buy health insurance to cover the
risk.

pay

There

pand further

real

need

ex¬

research efforts

our

to include

problems arising in the
political field and to devote more
to

the

coordination

organizations within

ous

our

this

enter

well to

which
of

the

involve

opinion

will

honest

within

tend

ahead

era

duce

many

new

age

Disagreement will be

business
number.

of the

one

by-products of innovation and
tional

tension.
on

positions
tions.

depend
cile

will

na¬

chal¬

side
to
controversial

take

every

And

our

ques¬

influence may well

upon our

keep before

ability to

the

united

lems.
If

„

have

learned

anything

during the past
high

cost

within

decade, it is the
of disunity of purpose

the

business.

rely entirely
come

tax

the

company

cently

not

in¬

legislative-ekperience to

support this statement.
with

need

another

division

Only

•

Foreign Outlays

foreign outlays of

one

sort

plans to

re¬

another sufficiently

possible these larger expenditures at home with¬

beginning of another
He said: -

ones

arise

must

must
*An

our

with

the

cause

think

and

address

by Mr. Thore before the
Meeting of Life Insurance
America, New York City,

Annual

December

re¬

occurred

respect to the interpretation
of_ our new tax la\vj<i Without go¬

ury.

is thus

the

not to be the
way

seen

newj^dministration. Much

There are,

To Admit Partners

ness

SAN

FRANCISCO, Calif.—Irving
Lundborg & Co., 310
Sansome
Street, members of the New York

Swanson

and

William

rely

naturally, certain aspects of public busi¬

• of course,
his Secretary of the Treasury to make wise

must

investing public. If the debt is to be got into
but

many years

pect

the

Federal

on Jan. 5 will admit
Cassidy, Jr. to partner¬

ship.

(Special to The Financial Chronicle)

business.

Officers

are

securities
Odis

Cooper, - President;
Cooper
P.
Matthews, and Russell A. Brown¬

and James
Treasurer.
Mr.
Cooper, Mr. Matthews and
Mr. Browning were all formerly
with Lile & Co., Inc.
ing,

Vice-Presidents^

Callas,

Secretary

his

part of the duties of the Secretary of the
Treasury to fix Federal Reserve policy, and neither he
a

and

the President should undertake to

under pressure to do
to be in the

WHOTTER, Calif.—Cooper-Mat¬
thews, Inc. has been formed with
offices at 243 West Philadelphia
engage

underwrite

Cooper-Matthews Formed

System

Let No One Do It
It is not

nor

Street

Reserve

Detroit Stock

Exchanges,
Arthur J.

has been promised for

ventures.

DETROIT, Mich.—Wm. C. Roney
Co., Buhl Building, members of
and

done, then it is the duty of the

never

York

obligations to offer when

borrowed, and what rates of interest to

would

Admit Partner
New

that he is given the

Secretary of the Treasury to arrange for the change. One
hope that neither he nor the President would ex¬

Wm. C. Roney to

the

course,

longer terms in larger degree
■.

and should

President would normally,

decisions about what types of

offer the

can

to promote healthful financial govern¬

policies, provided, of

upon

to fiscal responsibility in

Secretary of the Treasury

great deal

funds

White¬

Alto, and Robert
Wiedenmayer of San Francisco.

mili¬

hardly

to fill that high office.

opportunity. The

Ex¬

Palo

where the

mental

changes, on Jan. 5 will admit to
partnership Shannon M. Drew of
Stanford, LeGrand A. Gould of
Redwood City, George R. Liddle
IV
of
Menlo
Park, William J.
head

our

are

than that is involved,
though Alexander Hamilton himself were

to be called
up

Irving Lundborg

Stock

unilateral transfers

and, in some instances, doubtless by
Congress. A "free hand" by the Secretary of the Treasury

14, 1960.

Coast

reducing

the President himself

•

Pacific

or our

large deficit, but

an influential voice in the arrival at such
decisions,
they would have to be made in the final analysis by

but

and would be

and

incurring

would be involved in

have

occa¬

so
anew."

new,

act

normally to be made by the Secretary of the Treas¬
It could be that the Secretary of the Treasury would

the dogmas of the quiet

sion.-As

raising taxes

tary outlays abroad

new age

past
are
inadequate ,,to
the
stormy present. The occasion is
piled high with difficulties, and
we-

either

such decisions

100 years ago.

recon¬

position, not only in op¬
posing unsound legislation but in
seeking solutions to new prob¬
a

out

differences and to present

our

to make

busi¬

issues

differences

our

increase

•

It is conceivable that the President-elect

un¬

many

ness.

During

Lower

the words of Abraham Lincoln at

Association

have

sense

many

explored

extraordinary if the Secretary of the Treasury were to
a
deciding voice in the determination of policies
which give rise to increased
outlays.
Of course, neither the
Secretary of the Treasury nor
the President himself can
levy additional taxes or borrow
j on
the credit of the United States except as authorized
by Congress. There is thus no way under the sun that the

discussing the pos¬
sibility of the latter becoming Secretary of the Treasury.
We can only assume that such assurances as were neces¬
sary to satisfy Mr. Dillon were given.

better job than we
must continue to em¬
a

new

President-elect could give the
incoming Secretary of the
Treasury a "free hand" in such matters as these. We nat¬
urally have no way of knowing what was said when the
President-elect and Mr. Dillon were

individual responsibility
opportunity and the widest
possible distribution of political
and economic power.
We face a

54th

lenged

national considerations.

era
'

phasize

individuals

the research activities of the vari¬

deeply into

Better Job?

turbulent

presumably will have

have

and

figures which show that

which

economic

about One out of five of these aged

attention

reach

who

would

example of this need,

less

(

international

significance
with
this,! country
must
deal

the

steadfastness

can.

costs—whether he is indigent, in¬
The foregoing

can

Researfching Medical Care CoSts

five

National Objectives and Insurance

agree

ment

interven¬

'•

••••;

ever, we

the

with

not

battles to wage.
\

the

influential voice in these matters.
However, it would be

those

do to challenge unsound pro¬

financial

viewed

challenge, with

utilized to prove what we

The party is, so it is believed, more

areas.

extra funds should be raised. He

required
in
defending
the
personal insurance business
against big government. We must

the
play in solving

can

costs in

have

ahead

will

demonstrate

can

expenditures for defense

pursue one

presented

Can Do the

Finally,

will

can

of economic policies.. Business and

circles

Who

[ the Federal Reserve Board should

that

is sound.

the

business

of the responsibilities

part

naturally sooner or later impinge upon
the Secretary of the
Treasury, who doubtless will then
have
opportunity to tell the President how he thinks these

ourselves that the position

among

can

In
large
medical
bills
the which are beyond their ability to
business
community he
agreed pay. Now what are the available
that the day-to-day operations of -facts?. We know that the annual

his

de¬

It is difficult

hopeless to

must

admission

private

and

insurance

personal

;

Federal

•

that

ex¬

objectivity
viewpoints
on

consolidating

It is almost

programs

through

and the like must

provide services which

initiative.

pressed

personal

will

substance

are

vigor to get laws passed providing for large expenditure
for health
insurance, for education and for the aid of de¬

contribu¬

the

which

Secretary of the Treasury. From the President-elect's
headquarters in Florida has already come word that he
and' his legislative leaders are
making ready to push with

committed to very
large outlays on behalf of the farmer.
All these and other increased

it cannot afford to

its

made

rates
:

fields

enough to succeed in Washington
with a policy declaration that has
the full support of the business.

the challenges of
world, our nation
conserve
its
energies and

resources,

modern

must

depress

interest

business

controversial issues.

search and statistical studies which

'r *
*
generally.:
;
a
i Also unanswered is the under-

of it in the

leader¬

make to the

can

future

nothing.
responsibility or the lack
Kennedy regime will be largely determined in
or

vote greater effort and

could

and-hence

greatest

just about anything

power

reevaluated

Continued from page 1

The cold fact is that fiscal

un¬

at this point

was

intelligent

the

insurance

the problems of our society. This
will entail more emphasis on re¬

drive

and

each

political

stand¬

Federal

meeting

this

long-term

buy

bonds

One

traditional

Reserve

Federal

would

government

our

preservation.

Would

latter

The

the

that

mean

Thus

would

Federal
market

open

areas.

mean

es¬

terms of the national goal of self-1

operations throughout .the entire
maturity range of U. S. Govern¬

•

basis.

views

new

use

controls?

contemplate

Reserve

the

also

bad precedent

bold

tions

range

ment unusual powers

poten-

the

econ¬

Within

magnitude would. necessitate
imposing in the central govern¬

extrava¬

Would
urge

our

this

causing runaway inflaApparently he would sup¬
plement credit control with "other
tools" in managing our monetary
problems.
What
is
meant
by
Administration

of a one-third loss,
survival might depend
on
planning in advance how the
undestroyed
remainder
of
our
economy would function. Obvious¬
ly non-fatal attack planning de¬
signed to cope with a problem of

should be used to push inrates as low as possible

;"other

related
that

however,

tion.

tablished

that

one

staff

little could be done.

without

sides;

for

omy,

gant booms, but he seems to be; lieve that general credit control
:

House

both

an example, only re¬
spent a day with the

mone¬

method

rights

what those policies are to be.
And, of course, the state¬
ment about
"working toward" financial soundness could

discussing the ship within both groups decided
prenuclear attack plan¬ to unite and pursue the matter
ning. It was pointed out that if through industry channels. As a
the destruction resulting from a result Treasury reversed itself and
nuclear
attack
should
consume
adopted a favorable regulation. '

tary policy are also somewhat dis¬
turbing.
He " would
not
reject
monetary

the

need

;and full employment.

protect

White

is whether the first

past the primary job

cently

objectives will be pushed so
hard that price stability cannot be
maintained.
Moreover, Mr. Ken¬
nedy's use of the term "reasonable
stability" in price levels suggests
some
support for the objection¬
able thesis that creeping inflation
may be necessary to assure! growth
Kennedy's views

interest.

two

Mr.

AS WE SEE IT

ously pressed before the Treasury
Department.
The result
of this
split action was a tentative tax
regulation extremely unfavorable

developments.

and more
we will be called upon to balance
this objective with the national

main objectives:

concern

the

policyholders, but

ing the campaign he stressed three

chief

will

Finally let's take a look at Mr.
Kennedy's economic views. Dur¬

ing into detail, the divergent view¬
points were separately and vigor¬

officer

full time to Federal

(2687)

public interest. In

ent law there is
can

place that system

things that its officials do not believe
any

event, under the pres¬

that the Secretary of the Treasury
dictate policy to the Federal
Reserve, and it is most
no

way

ardently to be hoped that no attempt will be made by the
Kennedy Administration to place such legislation upon
the statute books. As
national
and

matter of

financial position,

credit mechanism could be

whether

fact, in

our

present inter¬

tinkering with the monetary
little short of disastrous

by the Secretary of the Treasury

or anyone

else.

(2688)

The Commercial and Financial Chronicle.^.. Thursday, December
29, 1960

total
assets,
this
44.1%; related to capi¬
tal funds the proportion is 90%.
As a group, fire and casualty
insurance
companies
invest
in
common
stocks
only with longrange objectives.
There is very

invested / at

can

equities,

"risk";

in
preferred.

and

common

first

The

these, namely
stocks, is,
of course,

mon

com¬

our

principal type of risk asset. Con¬
siderable emphasis is placed on
the

J"
tion

to 5%

You

rather
stock

"exceeds

seldom

that

nosition

held

capftal

company's

funds

position. The ratio for the
industry was about 80% in 1959.
T4.

-~U4.

•

,4.

might be pointed out at this
stage that companies in the indus¬
try doing their principal business
fire

with

marine

and

the

carriers

and

capital struc¬
tures have the higher positions in
equities. The reversal is true in¬
sofar

stronger

casualty

concerned

operations

are

multiple line sit-

where the emphasis is on

nations

casualty-surety business.
(3) The third consideration is
possibly the most important of
all.

This has to

ital

structure

whole.

mentioned
tions

writing
ance

the

place,

capitaliza-

the

conservative than

casualty operations.

The

capital

other than the

present

only to

policy.

would

whole

the

about 43.0%

had

of their assets repre¬

quite

different

alternatives

ment

set

mvest-

caused

princi-

industrial

Best lists

stock fire and

the assets

748

casualty companies

at the end

of 1959 at $21,800,000,000; 400-odd mutual fire and cas¬
ualty companies at $6,080,000,000.
As

policyholders

surplus, the
$9 381 000,000
and
$1,993,000,000, respectively. Prefl

are

miUm volume $9,930,000,000 and
$3,645,000,000, respectively, for the

stock

companies

against

the

mutuals.

B—Specific Investment Policies
Now
ment
mon

the

specific invest-

policies and problems; comstocks, bonds and preferred
in

that

order.

aad

casualty insurance

com¬

worth

figure amounted to about 35% of

had

$0.75 of capital funds.

viously,

-we

ratio

perhaps

stronger than this—for each dol¬
of

lar

liabilities

about

$0.90 of capital accounts.

these

Naturally,
from

time

tions

with

vary

fluctua¬

the

profitability of our
underwriting and the fortunes of
the

marketplace, but

among many

insurance investment people there

the

feeling

ratio

that

adequate

capital

between

accounts

may

high as 1 to 1.
companies have

others.

run

strength

than

Obviously some
greater capital
As

in¬

ferred

above, the same is true of
different "types" of companies.
To

this

carry

thesis

greater the degree of investment
can

dividual

company.

company

be taken by the in¬

with

For example,
ratio of capital

funds to liabilities of 100% would

possibly be justified in investing
close to 100% of its capital funds
in

stocks

common

whereas

with a capital ratio of
60% would probably feel that

eompany
say

risk

should

assets

capital funds and

less

than

probably

con¬

siderably less.
Our

problem is somewhat akin

deposits/capital ratio of the
commercial banks. Banks with the

lower—that

taking
than
lower

perhaps justified in
higher position in loans

those

other

capital

that

banks

position.

reason

insurance

conservative
whole

conservative

are

it is for the

erty

that the prop¬

capitalization

investment

with

Basically

industry

has
as

can

taken.

Contrast this position if you will
with the much larger structure of
life insurance companies, where

liabilities

the average are per¬

haps 10-12 times their capital ac¬
counts. The relative importance
of policyholders reserves being

great, the real risk that they
take such

as in common

apt to compare our

Or,

the

$7.5

our

capi¬

each

was

dollar

billion market

value

of common stocks

owned, I would
the "paper"
profit or appreciation might run
to close to $5 billion.

hazard

In the

life

that

guess

case

of my own group

of
excluding

companies,

insurance affiliate,

proaching a quarter into public
utility stocks and about 10% in
stocks.
Railroad
holdings

These figures are,
approximations. Actu¬
there are four individual
stock
categories
that
comprise
negligible.

are

Mon¬

analysis might be
capital losses as Such

Our

cannot be

applied against operat¬

income, although the capital
be

can

carried

for

over

against

Now—as

portion

our

the

basic

ticular

evaluation

ana¬

par¬

can

necessary

The

state

the

general

economy.

(b)
of

The condition

outlook

and

industry in question. ;•
(c) The analysis of the particu¬
stock.

common

10V2%.

Other

groupings include
building industry,

the

equipments and office
equipments.
These and other industry cate¬
gories are presented below and
represent the common stock di¬
versification

fire

and

cas¬

ualty groups.

these

analysis on each
of these several phases.
It is a
well-known
fact,
for
example,
that at the present time we are
witnessing more a "market for
than

"stock

pay

rate
our

the regular 52% corporate
tax—but

dividend

involves

that

mean

only

income.

double

15%

While

home"

taxation, it does
92% of our

just

over

dividends.

construed

as a

This

might

now

than

further factor

caus¬

gains, this tax provision affects us

in about the
fects

top

most

same way as
other -investors.

long-term
tends

equities

otherwise sell.

capital
to

it af¬
The

gains

tax

nec¬

choice of

a proper

items.

A number of the factors that

tend

to look

analyzing the
and its direc¬

economy

such

are

the following:

(1) Gross National Product Se¬
including Personal Income,
Personal
Consumption Expendi¬
tures, etc.
(2) Manufacturing output. Busi¬
ries—

inventories.

ness

(3) Department store sales.
Other

Container

(5)

Consumer

idends.

New plant expenditures.
(7) Population growth. Employ¬
ment and unemployment figures.
(8) Interest rate patterns—short
and long term.

(9)

might

Federal

Banking figures, including
Reserve policy.

(10)

In many cases the
.1959

Stock and bond market

These

Drug
Electrical Equipment
Food

Household

Products

♦

Machinery
Metal

Equipment

Oil

Paper
Retail

Trade

Springfield

4.00

10.52

10,998,573

Underwriting

biles.

3.98

weigh
the

1.61
0.40

—

1.95

1,208,100
382,500

0.62

667,800

1.08

4,310,796

6.97

16.21

7,500,811

12.13

2.80

11,949,699

3.15

1,082,456
4,511,900
124,740

7.30

1.94

2.85
4.33

1.05

••

—

«. w

1.75

0.20

Total

0.24

Insurance

_____

—

386,484

0.62

202,380

0.33

11.64

$41,351,609
5,833,512

66.86
9.44

1.21

Telephone

production

three years

Public

Utilities

722,164,765
68,184,392

Railroads

Total

Common Stocks

Standard

21.24

13,530,221

21.88

2.00

971,175

1.57

$790,349,157
48,619,165

23.24

$14,501,396

23.45

152,800

0.25

1.43

^3,400,063,293

100.00

its

$61,839,317

100.00

which

investors

many

subscribe;

research—much

by expert analysts of
banking houses.
Fi¬
the opportunity or the

investment

nally,

need

presented

visit

the

officials,

talk

with

the

management and

their plants

see

recurring basis.

Anyone

with
experience
in
stock
investing
could
impressive list of stocks

common

done

well

during

with

two

so-called

two

significant proportion of the

market
on

with

"compacts," the ef¬

profit

margins

smaller cars; the .probable
at least to a
degree, of

the

offset,
higher

technology and improved

producing
while

skills.

All

these,

significant, represent only

portion of the facts and opinions

to be considered. In

our

the

past 5-10 years. In

our particular
performers have

case

the

been

International

best

Business

Ma¬

chines,
Minnesota
Mining
and
Manufacturing, Minneapolis
Honeywell, Dow Chemical Com¬
pany, Eastmas Kodak, Rohm and
Haas, Merck and Company and
Scott
Paper
Company, just
to
mention

the

few and not

order

Naturally
ferent

the

necessarily

which

presented.

experience

investors

'13?

dif¬

with

the
same
stock may differ due to the factor
of timing. Many of our
holdings
with what we consider to be the

promise for
included
in

not

are

brief

listing for this

the

future

the

very

above
reason.

II—Bond Policies

Any consideration of bond poli¬
cies virtually has to be introduced
by a statement or two regarding
taxes.

The

interest from

all

cor¬

porate

obligations is taxable to
stock fire and casualty
companies
at the rate of
52%—leaving less
than

half

speak. The
to

"take

same

obligations

home"—so

far

municipal

type

Agencies.

bonds

concerned, there is of
same

situation applies
the U. S. Gov¬

are

course

the

treatment

that

given other investors—100% tax
free. Obviously this is ever so
important in connection with the
investment thinking as it relates
to bonds—it
just can't

help but be

criterion in final judgments.
As far as U. S. Treasuries
are

concerned, the industry's position

is attempted, gov¬

number

'Jlj

has

growth

the

also

excellent-

personal

over

supple¬
industry
institu¬

individual

prepared

Poor's

mented

families. Other considerations
include the probable replacement
of

are

period

by such factors such as
population increase; i.e., the in¬
crease in the population of driv¬
ing age, teenagers, etc.; the expan¬

Total

erned

proved
_

many of each;
appearing in such
statistical manuals as Moody's and

wage and material costs with, im¬

Public Utilities—

Electric and Gas

be added there

results

car

—

1.06

62.48

over

have

all

income,
gross national product and so on,
The probable growth in the units

sion

151,300

0.07

0.18

$2,124,271,072
395,664,881
41,159,018

—

5,982,057

Industrials
__

Example

operating

years, compare
such indices as

fect

Banks

first

the

industry

—

36,111,883
Items

importance.

specific example: automo¬

2.93

0.15

Miscellaneous

take

1,814,620

2.33

17.79

2,459,800

5,084,200
35,791,160
2,284,350

political factors

connection with the analysis
an
individual
industry, let's

4.15

79,197,452

consid¬

5.01

2.00

Steel

extraneous

Cites Autos

0.81

1.01

1.18

always

all

course,

$500,500
3,099,150

1.73

Tire & Rubber

erations ;such

and

2.47

39,987,810

Tobacco

Common

are

0.15

58,872,504

inclusive

0.29

Specialty Manufacturing
Textile

not,

are

% Total'

Average

the facts and fig¬

all weighed and it should

are

ernment and of Federal

ume.

Casualty Groups

capital structure,
its complexity.

Needless to say,

installment

and

Mortgage debt.
(6) Corporate earnings and div¬

locked

357,547,577
34,374,940
67,992,015
141,241,552
54,596,949
13,709,700
65,883,605
97,064,943
147,133,725
551,064,665
95,240,592

company's
simplicity

credit.

136,127,117

Chemical

the

greatest

corporate sales.

(4) Wholesale and retail prices.
Cost-of-living indices.

keep

which

before

ever

to make

essary

attempted.

are

the liberal nature of

have

ing the industry to invest heavily
in common stocks.
As to capital

$9,873,621
5,087,901
84,020,754

Building

results

servatism

that

this

dividends received represent "take

26 Groups

Automobile

future

simply means that the mar¬
extremely selective. Selec¬
tivity is all important and it is

This
ket

earnings,

Of significant interest is the con¬

Taxes

the matter of taxes
has quite some bearing on our
common stock
policy. On stocks,
course,

Equipment
Aircraft Manufacturing-

sales,

give

over-all

•

Agricultural

comparing
the
profit
margins,
dividends,' per
share
results
and
price action of the
stock. In many cases projections

market."

tion
Of

three

activity, including credit and vol¬

Industrial—

nature

services

correct

re¬

must be histori¬

course,

stocks"

COMMON STOCK DIVERSIFICATION
•>

amounted to about

(25%)

26 Fire and

the

company

stock

common

All

pro¬

the information

the

lar

compared with others
field and the possibilities

growth. Much of the basic

ures

(a)

products

its

it is first
position on:

Before

any

stock

common

started,
take

portfolio lies.

our

type

JS
i-'

are

record

time is spent on common
stocks; since that is where the real
in

duced

cal

ana¬

lytical
risk

The

search, of

lytical work—it is natural that
considerable

tors.

f's

and the direc¬

management team

future

and

Investment
1

our

As to individual company analy¬
sis, very often the start is with an
intangible: a careful look at the

research

Committee.

make

all

can

stocks, is,

investment

findings

equities revealed that public util¬
ity stocks were the largest, hold¬
ing at about 23%%, oil stocks
were
second at 16%, banks fol¬
lowed
at
11.%%
and chemicals

60%

about

holdings. At the end of 1959 com¬
panies with about $3.5 billion in

into

cost of which is about $20 million.

common

tional

$62 million in

stocks; the

less automatic

certain

types
of
analyses are important and it can
be costly to make a wrong deci¬
sion on any one of the three.
On
the
other hand, in
order to be
completely right it is necessary to

course,

ally,

arch Life, we have approximately
common

ap¬

larger than normal

risk

are

capital funds, we in the industry had, in this type of assets, 80c.

Office

to the

—ratio

industry

step

one

further, it is generally felt that
the higher the capital strength the
risk that

the

pre¬

for

80%.

our

and

indicated

relationship

than

large capital

more or

retention

sold.

bank

This

tal accounts. This

insurance

stocks.

holdings of equities with

and liabilities should not be lower

.75

into

billion

ratios

time

assets.

$7.5

about

had

total

about

common

types,

important

At the end of 1959 the 748 stock
fire

monies

something

stock

common

electrical

Stated another way, for each dol¬
lar of liabilities that the industry

considerably

total

stocks

I—Common Stock Policies

owned

Historically, the industry has
to put about 65-70% of its

panies

own

gain makes

tended

by capital funds and ap¬
proximately 57.0% by liabilities.

Our

growth characteristics.

pally by differences in tax treat¬
ment. As a matter of information,

sented

it had

range program.

objectives

with ours, I am including only
(b) The inclusion of quality
stock companies m my presenta- stocks,
(c) Emphasis on stocks with
tion. In many cases they have

line

1959

end

T*,.™*?"', A
of a long-

The objective

(a)

confusing to

mingle their different

payment of 25% of
the

Research and Analysis Guide

branJ

R.th,r

somewhat

First as to common stocks: these
carriers
are
still
comparatively
conservative, especially when they constitute the greatest risk fac¬
are compared with other financial
tor, the greatest potential reward,
institutions.
Stock companies as certainly the greatest fascination.
a

five-year period
capital gains.

long pull. If I had
to emphasize three points reflect-

S* XW 8S

the

multiple

groups

far

losses

We just
don't feel competent to invest for

casualty companies,

K.S'

stocks

structures

that

reference

ing

except in rare instances.

original businesses
and marine insur-

fire

were

cap-

industry

first

above,

the

do with the

noticed

been

leglsla"
assets.

but not because mutual insurance

relationship of our common
and
holdings to our capital funds

common

have
has

there

of their

stock fire and

stock
and

stocks—which purely on the basis

little investing for the short-term

Investing for Fire and
Casualty Companies
Continued from page

amounts to

company,

analyze as completely as is
possible one major industry each
month and take the results of

our

shown

marked

decrease

during the past few

years.

At the

present

18.5%

the

companies

are

total

time

assets

about

in Treasuries.
a

much

jlO

the

This compares with

higher figure

36.5%

—

years ago; even five

years

—

back

the

figure was almost 30%. In
spite of this reduction I am sure
that

all financial men in the in¬
dustry still regard Treasury bonds

their first line of defense. In
addition to the fact that
they still
constitute the most secure obli¬
as

gations in the world there is the
added factor of
greater liquidity

than most types of
corporates and

certainly of municipals.
So,

far

concerned,
more

less

commercial

concern is

the

naturally

banks

of the issues

particular

Treasury issues

are

since

of
so

are

lead,
the

'ip

many

tailored for their

needs.

Our
principal
to set up a
proper spac¬

•»

funds

coming due at regular intervals—

ing

will

our

have

maturities
an

even

flow

that
of

r'&fj

Volume

meet

Number

6016

the

able. Each of these is
for

short

there

against
the

term

position.
far

academic
of

corporate bonds
these are mostly

interest

52%

interest.

their

make

sense

bonds

of this type

hold

Wellington District Representatives Convene

taxes

interest paid.
to

their

debt

few

top cor¬
have
used

however,

preferreds during the

the holder and
We

may

also

fund

yield after taxes

operative at
even
in the

Treasuries

give the necessary incentive.
Municipal bonds are something
again. Next to our equity
situations, more time is probably
spent on this class of security

reason

than

retired

least

the

be) since there isn't enough added
over

income

adds

Quite

deduction

of any

also

convertible

many

debentures

(2689)

past several years, and many of
these have worked out quite hap¬
pily both from the standpoint of

doesn't

porations,

pay

very

(sad

Federal

amount

structure.

sell

obtainable

of
is,

the

just

are

This

us.

for the reason
tax that we have to

course,

corpprations issuing these

But

concerned,

Chronicle

opposed to preferred issues, since

justifiable

moderate

The Commercial and Financial

securities

securities that may become .avail¬
cause

for the

possible insurance needs
give us funds to invest
marketplace in attractive

—and
in

192(

corporation.
have

sinking

purchase

fund

future

some

case

time,

convertible

preferred

else

quarter

the

assets

and

years

well
in

This,

ago.

the

issues)

industry.

and

here

views

are

straight

thesis is that sinking funds

need

of
this

tually

for

/.somewhat

uihentioned/ considerable

general-; /type lof

amount

the meantime,

municipal financing. Seemr
ingly., there., are -very few cities
or; municipalities that report-their
finances in ^completely 4the same
.

of senior

sort

some

most

sort

some

day

ment.

•

that

work

the

has

there

rather

will

repay¬

that

seems

about this

stock

that

type .of preferred

most

investment

men

done

lies with the invest¬
banking fraternity. -

Certainly
are

revenue

tailored

now

needs

many

corporate investors such

merly there was perhaps some¬
thing slightly of a stigma attached
am

sure

to the
as

words

"revenue

many

have

bond,"

have

point where

soon

bonds

City,

Chapman before
Oklahoma, Okla¬

Okla.

come

revenue

general obligations. For
example, it is pretty hard to find
as

anything of much better revenue
quality than the Oklahoma Turn¬
pike (Turner).
;;t
III—Preferred
Still

using

Stock

Best's

J ames

Talcott, Inc.

James

Talcott,

Inc.,

one

trial financing and
factoring or¬
ganizations, today announced the

placement

with

institutional

vestors of subordinated
tal notes totaling

The

issues

1975;

and

notes
F.

due

Weld
the

$5,500,000
due

$6,000,000
Dec.

Co.

;

notes

Eberstadt

1,
&

1,
capital

1975.
Co.

Dec.

pre¬

represent
ferred

5.5%;;- As

stocks

would hardly be

the

class,

pre¬

present time

classified

hav¬

ing the. same degree of popularity
with

type of
other types

of these

issues.

of industrial finance:

accounts

re¬

many

held.
and
not

that

investment

personal opinion-^—

realize

that

views lare

fully shared in this
certain
types of preferred

stocks

are among the more attrac¬
tive securities for property insur¬

companies

ance

inventory and
equip¬
financing, industrial time
sales financing, factoring, rediseounting and equipment leasing.
Offmes
cated

first

under

the

convertible
natural

these

preferreds.

that

there

types
is
only

It is

should

de¬

at the present time,

suited

well
fire

the

and

get

issues
case

full

tax

this

needs

Boston, Atlanta,
geles anil Minneapolis.

tax

Los

An¬

that

advantage

sort, whereas

the'interest.

sense,

margin

and

ac¬

■•"/

-;ri

„•

Keith Funston, President of the
Exchange, announced that escro
funds have been deposited by tl

Exchange

with

Merchants

the

December 12-15, 1960, for their

move

that

added

the

Exchange's
purpose

for

made

was

permitting the

the

court-appointjed
pis

with

forward

Goetz

Co.,

Broaaway, New York' City,
of

the

change,

New

York

120

raem-

Stock

Jan. 1 will admit Louis

CRANSTON,
Ollen

has

formed

The

mat

would prevent

thp plan from be¬

The

Exchange's Board of Gov¬
had
previously
signified
that it would put up. under cer¬
tain conditions, an amount of ap¬

proximately $690,000 for relief of
faith

vestment

Ollen

In¬

and

Co.

Slay ton, Pontius Co.

has

229

111.—Slayton,
been

formed

said

Funston

ments

Market

investment

Street

of :course,- fon &

Thayer.

Pontius &

with

offices

continue

business-of
\

that

money

this

be worked out

would

reduced

sum

approxi¬

mately $625,000.

Slay•

$5,000.)

their

securities

claims have
court, and

livering

allowed bv the

been

signing

upon

releases

de¬

and

Receiver

,Tr

Gar^'tv

their

after

PuP°nt,

the

approximately

broker

p^imts

fhpJr

another

debit

against payment of

balances.

agreed

to the extent

therefore,

change,

(DuPont,
susnended

not

are

ficient to meet priority

nership

bond

panded

the

was

that

and other
"

Xc Co. was
fV>e ^xchan^e on

its

firm
W

not .be permitted

in- business
On

creditors.
was

t^e

TT.

placed
S.

with

Sept

safety
17, the

receivemhin

District

Tt. cease^

to be

and

working with
developed

Court
a

Jan.

Offi¬

officers

za+mns

doing
and

these

general

requirements

"All

personnel

announced

President

with

business

the next
several
weeks,
be
covered
in
amounts ranging from $100,000 to
$5,000,000, depending on size. The
Exchange is, in addition, explor¬
ing the possibility of obtaining
public

over-all

insurance

excess

bevond

age

within

will,

carried

that

member

"These
dence

steps

of the

Mr.

cover¬

another

tion

evi¬

increased

cial

standards

ethics

responsibility

well."

Sc*me'der

shire

has

Walston

graduate

Yale

School

the

Center

trustees
for

the

of the
Sheffield
University, class

1924, Mr. Chapman is a mem¬
University Council

ber of the Yale

Sam C.

connected

become

under

Performing Arts.

(Special to The Financial Chronicle)
—

1956

Review and of Harper
the publishers, and, a

Lincoln

the

ANGELES, Calif.

director

of the board

member

Joins Walston Co.
LOS

also

Saturday

but

finan¬

standards

established

organiza¬

& Brothers,

high

Council

the

Resources,

of
and

President

grant from the Ford Foundation.

continue to be measured not only

Chairman

public

the

Chapman

Library

Exchange's determi¬

serving

Paribas

Paribas.

The New York Public Library

each

been

Paribas

engage in the investment banking
business in the United States.

nation that those in the Exchange

Community

Corporation was formed earlier
this year by Banque de Paris et
des Pays-Bas
(Paris, France) to

organization.

are

elected
a
Corporation,
banking firm, it was
by Robert H. Craft,

has

Company,
investment

member

doing

Chapman, who earlier
retired as President of
The Yale & Towne Manufacturing
year

director

ganizations

Director of Paribas
Gilbert W.
this

first

the

for

time.

the

part¬

member firms under

of such

ners

with

business

amounts

places

and

Thomas

and

Grigsby, Assistant Treasurers.

employees
member organi-.

Penland

John

for

coverage

Assistant

and

Vice-Presidents,

Sampson,

in¬

for

Secretary; Melvin O. Wright,

Secretary;
Edward
M.
Becker,
J. C. Hjerbert Bryan and G. Leslie

fidelity,

calls

minimum

blanket
and

This

and
Treasurer;
Bruce, Vice-President

Vice-President

Board ex¬
require¬

the

and

mandatory

well

the

University's

Library Committee.

Co., Inc., 731 Wil-

Boulevard.

Earl Smith in Palm Beach
**

(Special to The Financial Chronicle)

Forms Penzell & Co.
MIAMI

BEACH,

business

from

PALM

Fla. — H. Roy
Penzell is engaging in a securities
coin
of

Road

Penzell

offices

under

the

at 407

firm

Lin-

PORTLAND, Oregon

1520

Securities

Southwest

BEACH, Fla.—Earl E. T.
engaging in a securities

from

business

—

Corp.
The firm

Service,

Twelfth

Inc.,

Street

mero^r

George

Van

Wm. E. Pollock &

1021

Eiff

has

joined

Co., Inc., under¬

and
dealers
in
state,
municipal, revenue and corporate

writers

bonds.

Headquarters of the com¬

located at 45 Wall Street*

rraani7ation o^-Rer**. 97. when the

has been changed to First Cascade

pany are

Exchange expelled Anton E. Hom¬

Corporation.

New York.

•-

offices

North Ocean Boulevard,

Joins Wm. Pollock

Now First Cascade

name

Smith

name

Co.

mht fin a nc i al conditmn

it could

continue
to

Richard

The Ex¬

Exchange's

for

ments

suf¬

Homsev
from

the future

form of stock brokers' part¬

new

that remaining

assets

will

Exchange,

Vice-President

situation arising in

would have to be found.

additional amount avail¬

recovered

has

Stock

effective

formed

lar

with

Exchange
an

York

New

deter¬

cers
will
be
Edgar B.
Rouse,
counts, the Board concluded that- President and Chairman of the
a different approach
Newton Brewer, Jr.,
to any simi¬ Board; J.

accounts, customers will have to
make arrangements for the trans¬
it-

"In

margin

150

Corporation

WASHINGTON,

able to pick up

soon

Form

mining in this single instance to
supply funds to free customer ac¬

individual

customers will be

years

v '
stated:

Funston

It is anticipated that about 1,500

Boston.
the

with

Sept. 9. -when* the Ex^ange fmmd

business.

aj}€
ALTON,

length

.arm's

placed1 in escrow was in excess of
$690,000, but that with adjust¬

Form

good

firm.

Mr.

Company with offices at

Northrup Street to engage in

securities

dealt in

who had

customers

The

public

ernors

claims.
232

developments

ing consummated.

able

Richard

—

fine

//Mr.

insurance.

Exchapg^President said it

hoped

make

F^ms Ollen Inv. Co.

jail term Of two

creased
The

Ex¬

A.NRezzonico, Jr. to partnership.

Rouse Brewer to

D. C. — Rouse,
and a: Brewer, Becker & Bryant, Inc., a
"> '■
* corporation, to be members of the

five customers and/was sentenced -

the insurance industry,

Homsey & Co.'s offices, 31 Milk
St., Boston, Mass. In the case of

Ungerleider, Goetz Admit
Ungerleider,

compa¬

of debentures, we pay

52%

It. makes

the

reason

important

in the

the

casualty

nies; this for the
from

nyNew York, Chicago, De¬

and
a dearth of convertible preferreds.
It is the latter type that are espe¬
cially

lo¬

are

pres¬

preponderance of convertible
bentures

subsidiaries

troit,

ent tax treatment.
The

investor" than

our

tember.

White,

Talcott

ment

holdings

freeing the

DuPont,
Homsey &vCo^ The firm has been
in
receivership
since mid-Sep-

the

and

assisted

placement

in¬

capi¬

$11,500,000.

are

subordinated

and

ceivable,

our

customers

the

country's oldest and largest inde¬
pendent commercial
and
indus¬

of the total assets of the industry.
In the case of the Springfield In¬

Companies,

cash

counts

Exchange

•

^liquidation plan foiL-the. firm

ferred stocks represent about 3%

surance

securities,

receiver

1854, James Tal¬
cott, Inc. is engaged in all phases

Policies

figures,

Stock

York

has paved the way for

Established in

New

National Bank of Boston.

would just

top-flight

Club

Economic

Mr.

the

meet

proved as risks and they are now
better understood. Whereas for¬

the

homa

bonds

ourselves; they have been im¬

address

The

this

connection,
ment

in the market place.

mo"cy

educational

been

Conference.

from Exchange membership'fraudulently, pledging Tcus-tomers'. Securities.
On
Dec.. 14,cMr/-Homsey pleaded
gtrilty to'
charges of taking securities of',

that

guarantee

very much come into
during the past decade.

for

Sales

for

equity securities without

some "

ments, have

A great deal of the credit for this,

Philadelphia

Annual

sey

not in favor

invest¬

distributor

The District Representatives met

retirement

are

refer when they say "it is neither
Of course, all this and more cam
fish nor .fowl."
1
'
v-:
said as far as revenue bonds
Of course, common stocks also
are
concerned. These, which not
have
no
maturity,; but they at
too many years_ago were
virtually least
give you a run for your
unheard of
institutional
as

national

and

manager

the two Funds.

and Wellington Equity Fund shares, with some of

•

especially

investment

Much of the insurance industry
always pretty much objected
the
straight preferred
issue

without

piece

one

has

security.. In s/the

cOyering^any

own

photograph above shows the District Repre¬

sentatives of Wellington Distributors, Inc., whole¬

the officers of Wellington Management Company,

;

this

,on

of /•/

their

The

even¬

sale distributing organization for Wellington Fund

placejttitfis quite, difficult to
fund—since
j gather' together the r.ea 1 facts and
'statistics

maturity on
an
issue,
and
give
a
certain
amount of price protection as well

first

•

that

know

look

d;;

analj^ical. dime is spent

relative

growth

Jt0<> continue
furtfer,'--i/y, -1 V:'
/ ;■

feel,

not too well shared—that

tax exemption on the part

r e n

stocks,

many
cases
attractive securities
for property insurance
companies
under present tax treatment. Our

(as

reflection

of the issue being

5.5%

the

for

astray, there is

goes

sinking fund preferred stocks
quality companies represent

reduction

for

the

Compare this with a
15.7% five years ago

course

for

to non-convertible
pre¬

again I

another.

figure

conversion

eventually.

Now

type

one

This

the

assurance

ferred

(actually 23.4%) of
the industry are in

municipal obligations of

reason

some

other, and for good

any

that

some

At the present time, close

reason.

stocks.

The Commercial and Financial Chronicle

(2690)

vvill depend on the, attitudes and
actions of both government and

terested

tities

spending

But

today our competitors abroad
building plants and facilities
that are just as modern and
proas

our

to have better tools, we

we are

age.

that fof

But

becoming more efficient, too. Moreover, their
employment cost advantage often
enables them to build and equip
are

job

addition

here
to

advantage,
enjoy the

home.

course

inf which

the bind

pres-

duction costs

the

pro-

the

hand and

one

allowed for this purpose
actual cost of replacing

sums

the

and

these profits

ability

Graham & King

operating cost decline, so does our ability to deal
competitors abroad more effectively through better

sult

WORCESTER, Mass.

people in

tion

than

laws, American industry is
suffering an annual loss of some

beck.

New Jamieson Branch

RICE

wise, well-reasoned

a common

unite

the

the management of Fred

•%>'

looks like this:

emerges

and

It would hardly be a good guess
to expect that the wage gap t have
mentioned can be closed in the

foreseeable
be

future

narrowed

tainly

significantly.

there

attempt

that it

can

Cer-

disposition to

reduce

level

and there is

American wages,

the

evidence that relatively the eihployment costs of
our
foreign
competitors will be permitted to
rise

substantially.

Meanwhile
rapidly
counter-balancing
technological
advantage
which we once enjoyed. Consequently there is at least a fair
these

competitors
whittling away the

chance

that

are

their

competitive
position -— eostwise and pricewise
—may steadily improve in relation to

our

How
ducers

expect

ticipation
10%

even

American

can

pro-

increased

par-

arv

their

markets

1%?

even

How

just

manage

can

hold

this

retain

it!

world

can

one answer

see.

increase

and

our

realize

our

maximum

com-.,

petitive capabilities, we should be
able to replace every facility as

rapidly

becomes obsolete
a target not quite as remote
the moon; but certainly a target
it

towards which to aim.
So

boils down

abUity

this.

Our

compete with foreign
more
effectively
in

producers

production and sale of the
finished product.

tools,

acauire' thesacquire
ines~

turn,

success

to
to

•

and

two

are

few

people
corporation

inseparable.

was

tj,Q

this

enlightened age,
realize that when a
has met all its ex-

can

sum

the

including the wearing out stressing proiuct innovation, imof
its plants and
including its proving quality and by increasing
Federal
income
taxes
and
has its sales effort. That is
certainly
come
down to its profit, it still a oart of our mandate.
Within the

penses,

4-a)

t'hose'^ools^it^i^ciea^thS5'the ^ *** ?« Sts P-d-«on costs,
of the

size

profit determines the
quantity and the kind of t^o's
that an enterprise can command,

senseless

internal

be decree

has

C:—McCarley &
a branch

opened

the
management of Donald T.
Midyette. :
,- •;

Join California Investors^
PASADENA,
Farrant,

Calif.

Thomas

Alan
W.
Jones arid

—

Green
•

California

joined the

investors, 630

Street.

■

•

HILLS, Calif .^Harold

with George, O'Neill & Co.,
Wilshire
Boulevard.
He

Read

With California Investors

8929

Evans

(Special to The Financial Chronicle)

,,~

was

LOS
A.

ANGELES, Calif.
Kagerman

Brandt

BAKERSFIELD, Calif.

labor or
and the
any other

society.

our

and

watch

know

must
that

America

and

will

—

William

H. Lowden has become associated

be¬

Sharing Economic Growth

are

Investors,

now

3932

—

Clifford

and
Donald
K.
with California

Boule¬

Wilshire

•

grow—

grow—we

growth will never

with

Evans

MacCormack

Co.,

vard.

Two With

Hayden, Stone

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.

and

thereto was Bakersfield manager Spencer was with Eastman Dillon,
Union Securities & Co.
for Walston & Co., Inc.

healthy growth requires that
segment of our society shall
it
not business alope

every

share in

—

and not unionized labor by

itseif,

Y0BR PRIME SOURCE FOR

but also

agriculture, all labor, in¬
vestors, education and, yes, even
government in those areas where
government serves to enlarge and
restrain

not

the

freedoms

our

people.
indeed

would

dismayed,

if I felt for a mo¬
ment that the inauguration of the
Kennedy Administration signalled
conflict and hostility between gov¬
incidentally,

ernment

mutual

and

business

instead

respect, constructive pro¬

posals and open-minded attitudes'
—with business doing its full part
to
reconcile
conflicting
view¬

•••ti|••y,•«<•••««

I would be more than
I

felt
—

that
any

would

reasoned

consider

dismayed

under

government

other

cane

SIEGEL

<K., Jnc.

administra¬
than

seek

fail

opposition to

—

criticism
honest

—

other

of—or

success it can any particular policy or course of
score in this latter field, and the action which may be proposed; for
rapidity with which it can piove, only by utilizing fully the spe-

Robert
1675
Chester,1 members of the Rapoport and Dale S. Spencer Jr.
Pacific
Coast
Stock
Exchange. have joined the staff of Hayden,
Stone & Co., 5657 Wilfehire Blvd.
Mr. Lowden was formerly with
Mr. Rapoport \yas formerly with
Francis I. du Pont & Co. and prior Shearson, Hammill & Co.
Mr.
—

attained by prospering one group
at the expense of another, Sound

tion

technology,

McCarley Branch

Inc.,

sfaff

and

groups

between

groups

°f its own pofcers and
its

branch office

office at 244 Craven Street under

(Special to The Financial Chronicle)

points,

advance

Co.,

With George, O'Neill

strong, se¬
free through formerly with
it cannot be Company.

warring

and

consumer

this

that

into

If this

sure.

agriculture and
between
the
producer

cilities,

tools

is to be

ours

tween

effort to improve productive fa-

the

opened

James L. Jackson have

any¬

between labor and business-

shareowners have provided for it.
And since there is nothing left

all"

•

218 East Grand Avenue under

New

President and Treasurer; James F.

increase in

else can.

useless

strife. There need be no hostility

resources, it can also bend every

use

Conversely,

jobs.

dynamic and
years to come,

its

the

' •

(Special to The Financial Chronicle)

*-j

unilateral

;

ESCQNDIDO, Calif.—A. C. Karr

NEW BERN,* N.

Burton W. Teague,

With Evans MacCormack

^ ajj up^ then, business

tt'LMM one^penny & stations

are

contending factions. It cannot af¬

better than

own

Officers

ford to dissipate its great energies

frojh

efforts— strengthen the competitive potential of our nation by

New Branch for A. C. Karr

securities business.

T. Andersen has become affiliated

the

1950's.

—through its

Faye.

for

BEVERLY

divided

towards

»'' *

•

markets

J +lnie hd!a SiL the trend is somewhat

c
tools try
and tools breed profits.

and

cure,

t el industry .of (He

world

production-crippling

Of one thing

it came only, after a long and un7
happy strike> but from the standtive in

exert—for better

nation of

S wSb ^
standpoint of the TteelTo? nrof:t? fo^ ?roffs dustry being able to provide i°bs>

problem

Even

the

point of th

William

under the management of

& Co. has

United

nothing

tended

the

sales, increases job opportunities
and strengthens
job security as

*° bemg competitive—although we in steel are far from
borne base at present,
Nevertheless the 1960 labor contract m the steel industry prosome contrasts the one we.
eptered mto m 1956 insofar as it
^tfeete our world position. True,

depends upon our v;fo.
generating the funds

Co. has

the

thing which fosters

comparison with say three years
a2°- We have a chance—and I
emphasize chance — of moving
fr?"?.
cost production to
relatively lower cost production,
lr0<? being non-competitive as a

to the

abilitv
acuity

those

for

will

tion

Pr^C]'n^ ourselves out of world
markets has been slowed down by

prices depends
rapidity with
which we can acquire new and
better tools of production—and by
tools I mean all the plants, machines, mills, furnaces, mines and
other capital'facilities necessary

uur
Our

President

Neylon and James P. MacPherson,
strike, Vice-Presidents; Richard P. LaMort6> Secretary.
All have been
thereby causes sales to drop, with
with Merritt, Vickers Inc.
a
consequent decline in produc¬
of

a hopeless under-

which

with

the

upon

...

special wish for tue in¬

HILLS, Calif.—A. C.
opened a branch
office at 6943 Wilshire Boulevard
Karr &

States. May he have the wisdom

prise. Anything,, theTeJpr,?. > which
injures the competitive position of
the business, whether it be an in¬
crease in actual employment costs

taking, for it seems to me that
the magnitude of the trend against
us
.s been altered to some degree in the past few years.
in my own view the rapidity

terms of costs and

directly

,~\or

historic

and easier, more efficient
of doing the work.

ways

„T

coming

Vickers SecuritiesCorporation has
job-creating activi¬
ties? Jobs depend upon sales and been formed with offices at 450
sales
in turn depend upon the, East 36th Street, New York City
competitive position of the enter¬ (c/o MacPherson);, to engage in a

Cost Trend

must

BEVERLY

worse—upon

to better—the prices of for¬
...

done about

Karr Branch Opened

;

the management of Albert Goepus who
are
of a Solomon, the patience of a
pinger.
' .*r'
/
unemployment
Job, the courage of a Daniel, and"
situation—and who among us is
the unfailing guidance of Almighty,
not—is it not a major part of our
Marache, Dofflemyre Office
'God.
'
*''
work to try to win understanding
SANTA
MONICA, Calif.—Marand
*From a» address by Mr; Blough bfeacceptance
of the
simple
ache,
Dofflemyre ; &
Co.
has
basic factors which create jobs? fore the 67th Annual Meeting of the
Illinois Manufacturers Association, .Chi¬
opened a branch office at 291
Is it not a part of our task to
cago, 111., Dec. 15, i960.
Twenty-sixth Street under the
recognize the profound influence
direction of Eugene Schulman. 1
that the leadership of labor can
Form Vickers Securities
And

depends in large
ability to meet

•

■

interested

America's

Some Improvement

°nly

that I
and

tools

Yet

•_••••

leadership
in
technology.
We
must
design and perfect better

industries.

the

—or

our

Well, there

something should

eign producers.

measure upon our

Only One Answer

towards

capacity to meet the growing competitive pressures in the markets

own?

make

stronger, growing America is to
help bring about a better national
understanding of this indestructible relationship between, profits
and tools. It is a project I commend for everyone's profound
consideration.
Equally essential, I believe, is a
broader public understanding —
both in and out of governmentof the necessity to prevent any
further widening of the employment-cost gap I have mentioned,
Sharing the fruits of improved
production through price reductions to the customer is of timeproven benefit to employees and
investors as well, but inflated
wage costs in these postwar years
have made this impossible^ in
many

own.

then

should

under

Sirianni.

effort, rather

divide them.

that

Hotel

0:Lakes

Land

our

lower tools with the price competition
And I have faith in the de¬
capital costs as well. At the same that we face. So the profit-squeez- $6 billion in underdepreciation.
termination of our business and
time, the quantities they produce ing process under which AmeriThe time has come, I think, to industrial leaders to fullfill this
&re
increasing as their markets can business and industry have
mandate that We share with all of
recognize that
every
industrial
enlarge.
so long been laboring, and which
our
fellow
citizens;
to
keep
foreign
country
against
y/r. ich
Now all of this is fine and we recently has accelerated, has—in
American goods must compete has America strong, to keep it secure,
admire the progress our competi- itself—tended to weaken greatly
more liberal
depreciation laws— to keep it dynamic and to keep it4
tion is making, but when you add our competitive position,
I "
•'
;
in most cases much more liberal free.
these facts together, the picture
I know that everyone joins with •
Clearly one contribution we can —than has the United States. And

advantage

—-

our

ability of

;

Jamieson &
branch office in

LAKE, Wis.

Co. has opened a

government

Graham &

Jnc.,, has opened a branch
office at 340 Main Street under
the direction of Harold I. Grous-

accom¬

and

Branch

—

king,

action.

I have faith in the
hew

differences

our

agree upon a
course

that, as a re¬
inadequate deprecia¬

our

Americans

modate

estimates

Institute

their

our

and

dismayed,

Recognizing as I do that men
of good will and highest intellect,
and of the deepest sincerity may
worn-out tools and facilities—is disagree
vigorously
as
to
the
woefully inadequate because of policies and actions f our nation
should adopt, I have iaith in our
inflation. The difference between

exactly

are

ently caught;. With mounting

in in the middle. And

not

don't expect to be.

with the struggle to meet our the worn-out facilities must come
these plants for considerably less competition,
pricewise,
in
the ultimately out
of profits.
The
money than it takes to do the market place, profits are squeezed Machinery
and Allied Products
same

But

fewer tools of production,

and their op-

own

Laws

of the difficulty we now

Branch

are

ductive

experience and knowl-.
New Byllesby
.
all of the vitally in¬
groups in our economy* DULUTH, Minn.—H. M. Byllesby
& Co., Inc., has opened a branch
can
we
hope, I believe, to find
office in the Alworth
Building
satisfactory answers to the criti¬
under the management of George
cal and complex problems of our
H. Stillman.
H
edge

acquiring improved tools
rapidly would be alleviated
mus* generate the funds through if the government's tax laws
which to buy them; or to put it recognized that the existing de¬
in the form of an economic axiom: preciation allowance—designed to
Less > Profit means poorer and provide for the replacement of

any more of their time and effort,

erations

Much
face

goods without

Depreciation

Inadequate

Improving Cost Trend
Continued from page 7

fecember 29, 1960

Thursday,

cialized

labor.

The Economy's and Steel's

.,.

39 Broadway, New York 6, N. Y.

DIgby 4-23701

Teletype No; N.Y. 1-5237

Volume

192

Number

6016

The Commercial and Financial

Now
class

NOTE—Because

the

with

high degree of

the

index

and

firm

Electronics Corp.

$3 per

—

filed

St.

Lawrence

538,000 shares of

common

ping

Built

29,

Americana

Properties, Inc.
27, 1960 filed 100,000 shares of common stock.
Price—$6 per share. Business—The operation of shop¬
.

December

(H.

(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
ceeds
For acquisition and
development of land and
operating capital. Office—1201 W. 66th St., Hialeah, Fla.

of record Nov. 22

for

each

four

held.

common

the

the basis of

Ampal-American Israel Corp.
Oct. 25, 1960 filed $5,000,000 of 7-year series 16% sink¬
ing fund debentures. Price—At par. Proceeds—For vari¬
ous
business enterprises in Israel. Office—17 East 71st

Street, New York City. Underwriter—None.
Nov.

Price

new

corporate purposes. Office—Du

Palm

mington, Del. Underwriter—Drexel

(M.

Altamil Corp.
:
Nov. 30,. 1960 filed

Drexel

which

carries

share.

Business—The

phosphate
general
New

mineral

business

York

two

City

prospecting
in

resources

Office

purposes.

Co.

(Eastman

—

Brooks

Weld

Click

American

Educational

Priee—$25

insurance

capital and surplus; Office

American

and

one

allied

lines

of
—

insurance.

writing of
Proceeds—

Third National Bank

Mortgage Investment Corp.
$1,800,000 of 4% 20-year collateral trust

filed

1,566,000

shares of class A

non-voting

com¬

stock.

for

them

until

Office

market
—

210

conditions

Center

St.,

are

fa"orable

Little

•

American Playlands Corp.
(12/27-30)
Aug. 22, 1960 filed 300,000 shares of common stock. Price
-*-$4 per share. Business—The company intends to oper~.
amusement

and

near

r-This statement.was withdrawn Dec. 21, but is expected
to be refiled in February.
American

Sept.

$300,000

Co.)

155,000

Common

Inc
Seidler

$225,000

Inc.)

Co.,

Common

$242,670

(Tuesday)
.Common

States Utilities Co.
(Bids

$11,500,000

received)

.Bonds

Kansas Gas & Electric Co.______
(Bids

Capital

Noyes

Common

—_

11:00

$7,000,000

EST)

a.m.

Security National Bank of Long Island—Common
(Offering

stockholders—underwritten

Bache

Co.)

EST)

Units

Bids

Bonds

$6,950,000

Sachs

Co.

600,000

$250,000

(H.

Simmons

Co.,

Inc.)

(Bids

First Boston

11:30

(Bids

.Common

Co.)

Bonds

—

received)

$8,000,000

$6,000,000

Texas Power & Light Co

Corp.)

Securities

(Tuesday)

January 24

—Common

$300,000

Co.)

Stern

Otter Tail Power

$300,000

...

Lichtenfeld

McMahon,

and

$1,000,000

Co.)

Common
(Edward

Common

——

Inc.

Co.,

Jouet, Inc.

Common

Boland

$4,125,000

(EST)

General Bowling Corp..

-.Units

,-H

Inc.)

Equip. Trust Ctfs.

Noon

(Monday)

January 23
Common

—;

Goldman

(Wednesday)

January 18

New York Central RR

$264,900
■

Bowl-Mor

—Bonds
$12,000,000

EST)

(Friday)

January 27
J-F

(Monday)

Machine, Diesel & Electronics, Inc.—Common
Securities

(Vestal

1960

Common

—

Co.)

(Paine,

136,000

shares,..

Webber,

Jackson

Marache

Curtis

78,955

Co.)

and

Granbery,

$300,000

Corp.)

(Paine,

Webber,

Jackson

Marache

<Sz

and

Cowles

Chemical

(Shearson,

Hammill

Development Corp.'
notification) 100,000 shares

Saxe,

Granbery,

Co.

Midland

—Debentures

Carey

Roulston,

Geochron

Co.,

Inc.)

and

Inc.

(Emanuel,

Restaurant

Corp.

Deetjen

Associates,

(Shearson,

(Paine,

Webber,

(Tuesday)

Coral Aggregates Corp

Grayway
(Harrison

Common

(Pierce,

Carrison,

Missouri Pacific RR
(Bids

United Automotive
(Pacific

received)

$3,210,000

Securities

Co.)

Common
$300,000

(Wednesday)

Brunswick Corp.
(Offering

stockholders—underwritten

and

Goldman,

Invesco

——

Sachs

Co.)

Vy Lehman
$25^634,400

(Bids

10:00

a.m.

(Offering

Peerless

to^ stockholders—no

Tube

(Wlnslow,

School

$10,000,000

underwriting)

Capital
Stetson,

Pictures, Inc

Inc.)

150,000

shares
—

—

Common
Inc.)

$300,000

—Bonds

$30,000,000

invited)

2:30

Fuller

Collateral

EST)

p.m.

Inc._.Class A Stk.

180,000 shares

Co.)

—Units

underwriting)

Measurements

March

$777,300

Common

Corp
Co.,

Inc.)

$299,950

(Wednesday)

—Common

Dodge Wire Corp.—
(Plymouth
,

March 15

Rochester Gas

.Common

Bonds

$20,000,000

Corp

(Blaha

./
Debentures
$13,260,000 !

Co.—
Cohu

Radar

Brothers

_Bonds
CST)

Pacific Gas Transmission Co.„

& Co.

Sloss

Marron,

(No

.Debentures

Iowa Power & Light Co

$45,000,000

Consolidated Airborne Systems,
(S.

January 11

—Debentures

received)

Inc._______—

District Power Co

(Bids

Industries, Inc

Coast

360,000

February 15 (Wednesday)
Chesapeake & Potomac Telenhone Co

—Equip. Trust Ctfs.
be

and

Co.

(Bids

67,000

Inc.)

Common
Curtis)

Gas

Precision,

....Common

Wulbern,

Jackson

Natural

Lake Superior

(Pe^fer Morgan & Co. and Robinson & Co., Inc.) $400,000
Heinicke Instruments Co

$522,500

(Tuesday)

February 7
Consolidated

(Bids

January 10

Ir.cV)

(Monday)
Berkey Photo Service, Inc
February 6

Common

245,000

Co.)

Trust-Beneficial Tr. Ctfs.

Co.,

Inc.______

Hammill

(Hodgdon

Common

Co.)1 150,000

Common

——

Union Securities & Co. and Granbery,
& Co.)
$16,250,000

Plaza Investment

Toledo

150,000 shares

60,000 units

Longstreth)

Marache

+.—Common

Ross, Lyon & Co.)

Soundcraft

Units

Mandel

$300,000

Laboratories,, Inc.—

(Globus.

Reeves

Securities

Common

!—

Capital Corp.—

(Eastman Dillon,

Edlund Engineered Products, Inc.————Common
(Albion

Inc.—

Jennings,

Inc.)

$2,500,000

Securities

Corp.)

$600,000

(Wednesday)
&

(Bids

Electric
10

Corp

received)

—Bonds

$15,000,000

(Equitable Securities Corp. and Kroeze, McLarty & Co.)

Southern

Gunn,

220,000

Co.)

(Wednesday)

Instruments,

(Warner.

$125,000
_

and

Elion

Common

Co.___

(Schwabacher

February 1

$2,000,000

Inc.)

International Electronic Research Corp...Common

(H. Hentz & Co. and Federman, Stonehill & Co.) 200,000 shares

Debentures

Curtis

Co.)

(Monday)

January 30

Shore-Calnevar, Inc.

Co., Inc._

100,000

Recreational

(letter

Corp

Co., Inc.—.....Common

Bowl-Mor

recreation

park on 196 acres of1
Liberty, N. Y. Proceeds—For development of
the land. Office—55 South Main St., Liberty, N. Y. Un¬
derwriter—M. W. Janis & Co., Inc., New York City. Note

$450,000)-

■

for

Rock, Ark.

Underwriter—Amico, Inc.

$300,000

stockholders—underwritten
by
Hemphill,
and Hallgarten & Co.)
300,000 shares

Corp

January 9

share of class

It is proposed that these securities will be
public sale in units (2,000) known as In¬
vestment Certificates, each representing $900 of bonds
and 783 shares of stock. Price—$1,800 per unit. Proceeds
—To be used principally to originate mortgage loans and

ate

Inc.)

Common

Crandall

January 17
Gulf

Co.)

665,838

;

Co.

(Friday)

(Equity

Common
Co.,

(Equity Securities Co.)

(Russell

Bldg., Nashville, Tenn.
Underwriter—Standard Ameri¬
can
Securities, Inc., Nashville, Tenn.

land

150,000

Telephone & Electronics Corp..

Co.

unit/Business—The

per

For

carry

Co,)

stockholders—underwritten

$300,000

Corp.)

(Flomenhaft,

and

9,000

Consolidated Circuit Corp.—

Insurance

Life

life

disposition.

(Schwabacher

(letter of notification)

consist of 4 shares of class A stock and

offered

and

Chemical

Mfg. Co., Inc.

Dec. 5, 1960 filed 960,000 shares of class A common vot¬
ing stock (par $1) and 240,000 shares of class B non¬
voting common stock to be sold in uints, each unit to

mon

Haas

(Blaha & Co.,

Bell Electronic

■

and

Co.J

4,000,000

Corp.

Star Gas

(Offering

Securities

bonds

Co.

& Co. Inc.

Co.

(John

Street,

Philadelphia, Pa. Un¬
derwriter—Martin, Monaghan & Mulhern, Inc., Ardmore,

Co,)

$160,000

—....Common

97,371 shares

January 6

Lone

for

receivable. Office—835 N. 19th St.,

April

to
&

Co.)

Gems, Inc.—

Common

Securities

.Common

Trans-Air System,

Co.)

Hogle & Co.)

Wilier Color Television System, Inc

Biddle

Peabody

Communications, Inc

Common

Inc.')-• 60,000

Kiddei',

and

and Earl Edden

(Bache

._____

Books, Inc.—

—

stock.

Co.,

Hogle

Mortgage Guaranty Insurance Corp.———Common

$500,000

$8,550,000

Yarnall,

(Thursday)

(Bids

(White,

Templeton

Inc.

.(H.

Corp

Co.;

and
shares

Debentures

(Alessandrinl

Lee

and

(Offering

Motors Insurance Corp.-

Proceeds—For

39,500; shares of
common stock
(par 33 Vb cents). Price — $5 per share.
Proceeds
For advertising and promotion and accounts

Corp.

$5,100,000

Co.)

Peabody

(James)

Pocket

(Vestal

Screen

received)

Union

Jones

$210,000

Inc.

(Lloyd

Price—$4 per

Underwriter—Casper Rogers Co., New
(managing).
\ -.'

Securities

Inc.)

snares

..Common

Tompleton

(Berner Bros,

Freoplex,

$300,00Q

Fund, Inc.——_—_

January 5

two

City.

Sept.< 27, .I960

Pa.

and

(Kidder,

shares, at

Beaver

Dillon,

Westminster

Statmaster

exploration

and

Israel..

Weld

purchase

Co.,

300,000

Dixie Natural Gas Corp

(Wednesday)

warrants

Karen

Common

Inc.)

Datamation, Inc.

—.——Common
&

Corp

Co.,

$1,000,000

r.,.Common

Inc.)

$320,000

—

(Mitchum,

Southwest Gas Corp..^x-_v-.T-4„w^-Common

■

offering price.

American Consolidated

page

Units
Inc.)

Co.,

—

Jones

Common

Co.,

Ltd.;

Treat

Colwell Co.

$240,000

$300,000

100,000

Investors)

Stroudv&'

(Drexel

stock, each

shares in the next issue of

common

discount of 25% from the

Inc.)

Rohm & Haas Co.

components
and
stainless
steel
sandwich
panels for use in military and commercial aircraft and
missiles. Proceeds—To selling stockholders. Office—225

common

Equity Fund,

(White,

Schramm

Common

(Drexel

—

★ America-Israel Phosphate Co.
1960 filed 125,000 shares of

Co.,

Holman

Common

National Aeronautical

-v

Dec. 23,

Common

(Bids

Underwriter
Note. — This
'
!

Oregon St., El Segundo, Calif. Underwriter—None.

(S.

Chicago, Burlington & Quincy RR.,_Equip. Tr. Ctfs.

251,716 outstanding shares of com¬
stock! Price—To be supplied by amendment. Busi¬
The manufacture, and sale of large machined

(Monday)

Colwell Co.

Limited,-

(Amos

January 4

structural

stock,

common

Inc.:—_—.—

60,000

Co.,

Barnes

Meyerson

Dallas,
*

Selected

Airport, Wil¬

Office—Arlington, Texas.

Rauscher, Pierce & Co., Inc.,
offering has been postponed.

additional,

shares of

International

(Mitchum,

Resisto Chemical, Ihc.

Bowling Centers, inc.
Dec. 29 filed $750,000 of sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For
general cor¬
porate purposes.

$300,000

Corp

Developers

Allied

—

Common

Inc.)

Co.)

Polysonics, Inc.

Co., Philadelphia,
Pa. (managing). Offering—Expected in
mid-January.

ness

65,000

Canaveral

Bradford

(David

Pont

Co.,

amendment.

mon

Continued

(R.

Investment

(J.

supplied by
Business—The firm is engaged primarily,
government-sponsored contracts, in research, de¬
velopment, and manufacturing activities related to the
aircraft, satellite, and missile fields. Proceeds—For gen¬
—

Zeiff

Chemical

Continental

under

eral

Corp.
1960 filed

25,

(Tuesday)

(Sandkuhl

stock (par
outstanding

one

Wright &

(Stern,

Brothers

1960 filed 85,918 shares of
cents), to be offered to holders

January 3

Underwriter—H. P. Black &
Co., Washington, D. C.
All American
Engineering Co.

Sept. 27,

Bradford Pools,

(Friday)

Arway Manufacturing Corp

—

Does-More Products Corp.——

Industries, Inc.

1960

common

and

January

NEW ISSUE CALENDAR

For

—

stock

common

ISSUE

units, each

Proceeds

Aug.

REVISED

bowling facility. Office — 855 Montauk
Highway, Oakdale, L. I., N. Y. Underwriter—Plymouth
Securities Corp., New York City. Offering—Expected in
mid-February.
-

Oct.

salaries of additional personnel,
liquidation of debt, research, and the balance for work¬
ing capital. Office—551 W. 22nd Street, New York City.
Underwriter—To be supplied by amendment.
Adler

ITEMS

Proceeds—For debt reduction and construction

stores

unit to consist of two common
shares, one series I 5-year purchase warrant, and one
5-year series II warrant. Warrants are exercisable ini¬
tially at $2 per share. Price—To be supplied by amend¬
ment.

and bowling establishments in Long Island*

areas

N. Y.

ADDITIONS

SINCE
•

Anelex

•

Sept. 28, 1960 filed 150,000 shares of common stock,
75,000 series I common stock purchase warrants, and
75,000 series II common stock purchase warrants, to be
offered

(par 10 cents). Price

Seaway Land Co.
stock, of which
350,000 shares are to be publicly offered. Price—$3 per
share. Proceeds—To pay off
mortgages, develop and im¬
prove
properties, and acquire additional. real estate.
Office—60 E. 42nd St.r New York City. Underwriter—
A. J. Gabriel Co., Inc., New York
City.

Jan.

offering dates.

ACR

stock

common

American &

accompanying detailed

items reflect the expectations of the underwriter
but are not, in general, to be considered as

Registration

Maryland, Baltimore, Md.

The dates shown

accuracy.

the

* INDICATES

(2691)

share. Proceeds—For expenses in
constructing and oper¬
ating recreation centers. Office — 210 E. Lexington St.,
Baltimore 2, Md. Underwriter—Investment Securities Co.

large number of issues

awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
in

Chronicle '

Pacific

(Bids

noon

June 13

Equip. Trust Ctfs.
EST)

$8,400,000

(Tuesday)

Virginia Electric & Power Co.—
/

ranoiuarl \

fc*lA

AAA

_Bonds
trt

AAA

of
28

(2692)

The Commercial and Financial Chronicle

Thursday, December 29, I960

Continued from page 27
which

55,000

are

subject

purchase on exercise of
issued to Putnam & Co., Hart¬
to

warrants and 10,000 were
ford, Conn, Price—The 55,000 shares

ercise

warrants

from

issuable

are

on ex¬

share. The
10,000 shares are owned by Anderson-Nichols & Co., and
are subject to purchase under options by three individ¬

uals

ment

$7.50

share.

and manufacture

speed

$16

$17.50

Business—The
of

design,

develop¬
high speed printers and high

tape readers for use with computers and
electronic data processing systems. Proceeds—To work¬
ing capital. Office — 150 Causeway St., Boston, Mass.
Underwriter—None.

paper

ic Berkey Photo Service, Ir.c.
Dec. 28, 1960 filed
360,600 snares
to

(2/6-10)
ot common

supplied by amendment. Business—Pnoto-processing. Proceeds—For general corporate purposes. Office—
77

East

13th

St.,

New

\orK

City.

Underwriter—Paine,

Webber, Jackson & Curtis, New York City (managing).
•

Bonneville

Manufacturing Co.
24, 1960 (letter of notification) 32,000 shares of com¬
stock (par 50 cents).
Price—$5 per share. Proceeds
—For lease of a
building and operating capital. Office
—10915 N. Burgard,
Portland, Ore. Underwriter—Auld
& Co., Portland, Oreg.
Note—Auld & Co., is no longer
underwriting this issue.
Oct.

mon

Arway Manufacturing Corp. (1/3)
Nov. 15, I960 (letter of notification) 120,000 shares of
common
stock
(par 25 cents).
Price — $2 per share.
Business

consisting of

and

Manufacturers of plastic table cloths, mats,

—

Proceeds—For

trays.

Office

1041

—

Utica

general

Avenue,

corporate

Brooklyn,

purposes.

N. Y.

Under¬

writer—Stern, Zeiff & Co., Inc., New York, N. Y.
Associated Oil & Gas Co.
Nov. 23,

1960 filed 107,317 shares of outstanding capital

Associated
Dec.

Traffic

Clubs

common

share and one-half of

Insurance

5, 1960, filed 250,000 shares of

Corp.

common

stock

80c), to be sold to the Associated Traffic Clubs of Ameri¬
ca
and their members. Price—$2 per share. Business—
Provides
insurance
coverage
to the members of the
above club. Proceeds—To be added to surplus to main¬
tain it at the amount required by law and to carry on

ated

Co., New York, N. Y.

debentures,

it Automobile Banking Corp.

amendment.

Dec.

Newtown

1960, filed $2,000,000 of capital debentures and

attached warrants to be offered for public sale in units
consisting of one $1,000 debenture and a 5-year warrant
to purchase 50 shares of class A common stock. Price—
To be supplied by amendment. Business—The financing
of instalment sales for automobile dealers. Proceeds—To

retire
and

outstanding 5 ¥2% capital convertible debentures
expansion. Office—6 Penn Center Plaza, Phila¬

for

delphia, Pa. Underwriters—Reynolds & Co., Inc., New
York and Cruttenden, Podesta & Co., Chicago (man¬
aging).

Avery Adhesive Products, Inc.
18, 1960 filed 250,000 shares of common stock (par
$1), of which 100,000 shares are to be offered for the

Nov.

of the company, and 150,000 outstanding shares
to be offered for the account of selling stockholders.

account
are

Price—To

manufacture

supplied

amendment.
Business—The
pressure-sensitive labels.
Proceeds —

Approximately $1,080,000 will be used to redeem the
outstanding 5% preferred stock, and the balance will be
for working capital. Office—2540 Huntington Drive, San
Marino, Calif. Underwriters—Kidder, Peabody & Co.,
New York City, and Wagenseller & Durst, Inc., Los An¬
geles, Calif. Offering—Expected in mid-January.
Avionics

Investing Corp.

July 12, 1960 filed 250,000 shares of capital stock (par
$1).
Price — $10 per share.
Business — The issuer is
a

closed

end

non
diversified management investment
Proceeds—For investments in small business

company.
concerns

in avionics and

related fields, with a proposed

limit of $800,000

to be invested in any one such enter¬
Office — 1000 - 16th Street, N; W., Washington,
Underwriter—S. D. Fuller & Co., New York City.

prise.
D. C.

Inc.
(letter of notification)

300,000 shares of
class A common stock.
Price—At par ($1 per share).
Proceeds—For expenses for development of oil
proper¬
ties. Office—Suite 1150, First National Bank Bldg., Den¬
ver, Colo. Underwriter—L. A. Huey & Co., Denver, Colo.

offered

basis of

one

common

outstanding

stock, to be

common

the

share for each 10 shares held.

new

Price—

costs of the company's entry
Office
Newton

into the "tenpin" bowling
Road, Littleton, Mass.
Under¬
writers
Paine, Webber, Jackson & Curtis, and Gran¬
bery, Marache & Co.,'both of New York City (man¬
aging). ■ ' v. :
./
•
<■
>r:

field.

—

Bradford

Pools, Inc.

(1/16)
" "■ r
Oct. 24, 1960 filed 160,000 shares of class A common
stock, with stock purchase warrants attached, to be of¬
fered in units

consisting of five shares of stock and one
Price—$10 per unit. Business—The construction,
sale, and installation of pools in New Jersey and neigh¬
boring states. Proceeds—For general corporate
warrant.

purposes,

including working capital.
Office
245 Nassau St.,
Princeton, N. J. Underwriter—R. A. Holman & Co., Inc.,
New York City.
•

offered in

units consisting of $400 of
debentures, 50
common shares, and warrants for the
cash purchase of 50
shares.
Price—$450 per unit. Business—The retail sale
in two Bronx, N.
Y., stores of

unit to consist of two shares of common stock and one
warrant for the purchase of one share at
$6 per share

unit. Proceeds—$200,000

will be used to expand the
company's imports from Eu¬
rope and Japan and the balance will be used for addi¬
tional working capital. Office—1311 South 39th

St., St.
Louis, Mo. Underwriter—Netherlands Securities Co., Inc.,
New York City,
Offering—Expected sometime in Jan¬
-

related items.

photo supplies, and

appliances,

Proceeds—

To reduce accounts payable to
factors, with the
for working capital.
Office—542 E. 138th

balance

Street,

York

City.

New

Underwriter—Lloyd Haas & Co., New York

City.
Brothers

10c)

ber of common shares and
125,000 common shares under¬
lying the warrants. Offering will be made in units, each

For

Chemical

1960

(letter

Co.

(1/3-6)

notification)

100,000 shares ol
cents).
Price — $3 per
Business—Manufacturing chemicals. Proceeds—
common

general

stock

(par

corporate

Office

purposes.

—

575

Street, Orange, N. J.
Underwriter—Sandkuhl
pany, Inc., Newark, N. J. and New York City.
Brunswick Corp.

Forest

Com¬

(R.)

Sept. 20, 1960

(letter of notification)

common
stock
(par 75
Business—The issuer is

and

cents).

Price

100,000 shares
—

per

share.

broker-dealer with the SEC,
member of the NASD. Proceeds—To take
positions
a

and maintain markets in securities,
participate in under-

writings, and the balance
1518 K

for

$25,634,400 of convertible subordinated
debentures, due Jan. 1, 1981, to be offered to holders of
the outstanding common stock of record Jan.
11, on the
basis

$100

held with

debentures

rights to expire

for

each

then

Jan. 25. Price—To be sup¬
plied by amendment. Business — The manufacture and
distribution of bowling products. Proceeds—For

working capital. Office—
St., N. W., Washington, D. C. Underwriter—Same.

Electronic Corp. (1/9)
12, 1960 filed 136,000 shares

of common stock, of
which 86,000 shares are to be offered for the account
the issuing company and
50,000 shares, represefrting
outstanding stock, are to be offered for the account

of the present holder thereof. Price—To
be supplied by
amendment. Business—The
company, which was organ¬
ized in May 1959, is a distributor of electronic
parts and
>)

equipment manufactured by others. Proceeds—For in¬
ventory and to carry accounts receivable. Office—306 E.
Alondra Blvd/,,Gardena, Calif. Underwriter
Schwabacher & Co., San
Francisco, Calif.
"

purposes, primarily for foreign investments
increased inventory. Office—623 S. Wabash

—

Ave.,

Chicago, 111. Underwriters—Lehman
man,

Brothers and Gold¬

Sachs & Co. (managing).

Proceeds—

corporate purposes and working

capital.^ Of¬

Vineland, N. J. Underwriters
Walker & Co., Jersey City,

Trenton, N.J. and L. D. Sher¬
Y. Offering—Expected in

Inc.

Office—Washington, D. C.

vestment company and a

Underwriter—None.

subsidiary of Citizens & South¬

National Bank of Atlanta. Proceeds—For investment.

ern

Office—Marietta and Broad Streets, Atlanta, Ga. Under¬
writers

The

—

Johnson,

Lane,

Space Corp., Savannah;

(managing). Offering—Expected in early February.
Click

Chemical

Corp. (1/6)
(letter of notification) 100,000 shares of
stock (par 10 cents). Prices—$3 per share. Busi¬
ness—Manufacturers of household chemicals. Proceeds—
To go to a selling stockholder/Office—601 S. Coiumbus
Nov.

1960

common

Ave., Mt. Vernon, N. Y. Underwriter—John R. Boland &
Co., Inc., New York, N. Y.
Coastal

Acceptance Corp.
3, 1960 (letter of notification) $100,000 of 10-year
7% registered series notes, to be offered in denomina¬
tions of $100 to $1,000 each. Price—At face value. Pro¬
ceeds—For working capital. Office—36 Lowell
St., Man¬
chester,
N.
H.
Underwriter — Shontell
&
Varick,
Oct.

Manchester, N. H.

•

Coburn Credit Co., Inc.
Nov. 18, 1960 filed 50,000 shares
value

$1).

Price—$4

per

share.

common stock (par
Business—Consumer

sales finance business.
purposes.

Proceeds—For general corporate
Office—53 N. Park Avenue, Rockville Centre,

Underwriters—Brand, Grumet & Seigel, Inc. and
Co., Inc., New York, N. Y. Offering—Ex¬

Business Capital Corp.

—$10

Price

share. Business—A closed-end, non-diversified
management investment company licensed under the
per

Business

Investment Act.

Proceeds—For

general

business

purposes.
Office—728 West Roosevelt Road,
Chicago. Underwriters—Blunt Ellis & Simmons, Chicago,
Hornblower & Weeks, New York City and
Cruttenden,
Podesta & Co., Chicago (managing). Offering—Expected
in late January.

Business

\ug.

1960

Finance

(letter

Corp.
of

pected in mid-January.

^ Colorite Plastics, Inc.
Dec.

22, 1960 filed $900,000 principal amount
mortgage bonds, 6V2 % series, due 1976 (with
common
stock
purchase warrants)
and

able

shares of

common

face amount

stock. Price—For the bonds:

plus accrued interest.

first

detach¬
100,000
100%

For the stock: To be

supplied by amendment. Business—The manufacture of
plastic garden hose, tubes, rods, strips, gaskets, and re¬
lated items. Proceeds—To purchase
land, buildings and
equipment and for working capital. Office—50 California

Ave., Paterson, N. J. Underwriter—P. W. Brooks & Co.,
New York City (managing). Offering —
Expected in
early February.
/
•

Colwell &

Co.

(1/16-20)

Nov. 18, 1960 filed $1,000,000 of 6V2%

subordinated sink¬

ing fund debentures, due 1976, each $1,000 debenture to
have
of

attached warrant for the

common

stock.

Also filed

were

purchase of 50 shares

60,000 shares of

stock, of which 50,000 shares

are

com¬

offered for

to be

account of selling stockholders.
Price—To be sup¬
plied by amendment. Business—Originating and servic¬
ing loans secured by mortgages on real property;. Pro¬
ceeds—For working capital. Office—5856 Wilshire Bou¬
levard, Los
Angeles, Calif.
Underwriter
Mitchum,
—

Jones &

Temnleton, Los Angeles, Calif, and J. A. Hogle
Co., Salt Lake City, Utah.
Commerce

Refining Corp.
$25,000,COO of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct.

1, 1968 and 3,000,000 shares of

195,000

'ommon stock
(par 20 cents). Price — $1.50 per share.
Proceeds—For business expansion; Office—1800 E. 26th

St., Little Rock,; Ark: Underwriter—Cohn Co:, Inc., 309
N. Ridge Road, Little
Rock, Ark.' ■'*

stock to be

common

follows: $1,000 of bonds and 48 shares

of stock and $100 af debentures and nine shares cf stock.
Price — To be supplied

by amendment. Proceeds —To
Underwriter—Lehman Brothers, New
Offering—Indefinite.
*

construct

York.

refinery.

Commonwealth International & General Fund, Inc.
Dec. 19, 1960, filed
400,000 shares of common capital
stock. Price—$12.50 per share. Business—A,
diversified,
open-end, managed investment company. Proceeds—For
investment. Office—615 Russ Bldg., San
Francisco, Calif.
Underwriter—North American Securities
Co., San Fran¬

cisco
„

notification)

Oil

Dec. 16, 1957 filed

offered in units

Dec. 19, 1960 filed 500,000 shares of common stock.

Small

Bell

Oct.

and

•

the

(1/11)

Dec. 5, 1960 filed

corporate

& Co.

mon

general

Baruch

per

Kesselman &

Brooks

(James) & Co., Inc. (1/5)
Oct. 24, 1960 filed
$400,000 of 12% subordinated de¬
bentures, due 1980, 50,000 shares of common stock, and
warrants for the purchase of
50,000 common shares; to
be

rebuilding

^ Citizens & Southern Capital Corp.
V
Dec. 21,
1960, filed 300,000 shares of common stock.'.
Price—$5.50 per share. Business—A small business in¬

—

share.

1960 filed 250,000 shares of common stock (par
125,000 warrants for the purchase of a like num¬

uary.

the

supplied by amendment. Business—The company
pin - sitting machines for various types
of bowling games. Proceeds—For
working capital and for

Dec. 6,

per

Inc.

May 1, 1962. Price—$10

holders

and

—

Courts & Co. and Robinson-Humphrey Co. Inc., Atlanta:

manufactures

Littleton,

Co., Inc. (1/9-13)
Oct. 25, 1960 filed 78,955 shares of

Aug.

Industries

Road,

Bowl-Mor

class

Banner

be supplied by
working capital. Office —
Mass. Underwriters—Paine,

Proceeds —For

Manufacture

shares of
share.
electronic, :

95,000

Price

cents).

stock, $1 per share; debentures in units of $1,000 at their
principal amount.. Proceeds—For initiating sight-$eeing
service.

convertible subordin¬

Price—To

Webber, Jackson & Curtis and Granbery, Marache & Co.,
both of New York City (managing).

cameras,

Bal-Tex Oil Co.,

17, 1960

19 75.

furniture,

Offering—Indefinitely postponed.
June

due

Circle-The-Sights,

Inc., New York
City (managing). Offering—Expected in January.

Brod &

site in Atlanta,

March 30 filed 165,000 shares of common stock and $330,000 of debentures (10-year 8% redeemable). Price—For

Co.,

Bowl-Mor Co.,)lnc. (1/9-13)
Oct. 28, 1960 filed $2,000,000 ot 070

—

(par

fice—204 S. W. Boulevard,
—Rodetsky, Kleinzahler,
N. J.; L. C. Wegard &
Co.,
man
& Co., New York,
late January.

—

Malkan

stock

For general

Bowling & Construction Corp.
28, 1960 filed 120,000 shares of class A common
Price—$5 per share. Business—The building, leas¬
ing and operation of bowling centers. Proceeds
For
working capital. Office—26 Broadway, New York, N. Y.
Arnold

Corp.
(letter of notification)

1960

Business

stock.

—

electro-mechanical and mechanical controls.

Underwriters—Ross, Lyons & Co., Inc.,
City and Globus, Inc., Great Neck, N. Y.

Underwriter

Development Corp.
shares of common stock.

140,000

share. Proceeds—For investment in land

Controls

28,

common

Plains, N. J.

and further develop the business of the company. Office
—900 Market St., Wilmington, Del. Underwriter—A. T.

27,

Circle
Oct.

Nov.

(par

per

derwriter—To be supplied by amendment.

measuring equipment. Proceeds—For expan¬
sion, advertising and sales promotion and for research
and development.
Office—738 Speedwell Avenue, Mor¬
New York

Southeastern

filed

and the balance for general corporate purposes.
Office—4358 Northside Drive, N. W., Atlanta, Ga.
Un¬

One full warrant will be required to pur¬
during the first year
and $6.50 per share the second
year.
Price—$5.50 per
unit. Business—Tne design and manufacture of
precision

ris

1960

Ga.,

share at $5.50 per share

one

Co., Inc., New York Cit*

in the Caribbean area, development

two-

28,

Price—$5.25

warrant.

year

chase

Bldg., Houston, Texas. Underwriter—None.

Sept.

Dec.

one

Caribbean

electronic

stock. Price—At thfe market. Business—The acquisition,
exploration and production of oil and gas. Proceeds—To
selling stockholders. Office—1410 Bank of the Southwest

Schramm

^ Bconton Electronics Corp.
23, 1960 filed 60,000 shares of common stock plus
attached warrants, to be offered for
public sale in units

•

Canaveral International Corp.
(1/16-20)
Aug. 12, I960 filed 300,000 shares of cuminon stock (par
$1). Price—To be supplied by amendment. Business—•
Land sales and development. Proceeds—$150,000 for ac¬
counts payable, $335,000 for mortgage and interest pay¬
ments, $250,000 for advertising, $250,000 for development
costs and $290,000 for general working capital. Office— ~
1766 Bay
Road, Miami Beach, Fla.
Underwriter — S.

stock. Price

(dealer-manager).

Compression Industries Corp< Y
Dec. 19, 1960 (letter of notification)
100,000
common

stock

(par 10 cents K Price
Business—Construction of swimming

$2,50 per share.pools. Proceeds^
For
general-corporate'purposes. Office—313 W. Jericho

Volume

192

Number

6016

The Commercial and Financial

Turnpike, Huntington, N. Y. Underwriter—I., R. E. In¬
vestors
Corp., 3000 ..Hempstead Turnpike, Levittown,
N. Y.

Brothers, New York City, and
Jaffray & Hop wood, Minneapolis, Minn, (man¬
aging. Offering—Indefinitely postponed.

Circuit

Consolidated

Corp. (1/9-13)
notification) 125,000 shares of
common stock
(par one cent). Price—$1 per share. Pro¬
ceeds—To retire a bank loan and for working capital.
Office
837 E. Orangethorpe, Anaheim, Calif. Under¬
writer—Russell & Saxe, Inc., New York, N. Y.
1,

(letter

1960

—

Dalto

March

April 27 filed 2,000,000 shares of common stock. Price—
$1 per share. Proceeds—To establish a $250,000 revolving
intermediate

financing of the con¬
pre-fabricated type residential or.
buildings and facilities upon properties to
be acquired for sub-division and shopping center devel¬
opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
struction of custom

each

share then

Underwriter—The Huntley

Corp., Little Rock. Ark.

Consumers

Cooperative Association
Oct. 25, 1960 filed $8,000,000 of 5 M> %, 25-year subor¬
dinated certificates of indebtedness, 320,000 shares of
5V2% preferred stock, 40,000 shares of 4% second pre¬
ferred stock, and 1,000 shares of common stock. Prices—
For the certificates of indebtedness, 100% of principal
amount, and for the

common

stock and both

classes of

the

preferred stock, $25 per share. Business—The asso¬
ciation is a cooperative wholesale purchasing and manu¬
facturing association and functions as a supply source
for local farmers'
cooperative associations in several
mid-Western States.
Proceeds
For facility expansion
and improvement, with $1,739,600 to be used for the
retirement of maturing certificates of indebtedness and
redemption prior to maturity of such certificates and
the 5%% preferred stock. Office—3315 N. Oak Traffic—

City, Mo.

Kansas

way,

Continental

Underwriter—None.

Investment

Corp. (1/3-6)
Nov. 10, 1960 filed 100,000 shares of outstanding com¬
mon stock. Price—To be supplied
by amendment. Busi¬
ness
Purchasing retail instalment sales contracts and
making direct loans secured by personal property. Pro¬
—

ceeds— To go to selling stockholders.
Office—120 S.
Third St., Memphis, Tenn. Underwriter—J. C. Bradford
& Co., Nashville, Tenn. (managing).

Coral Aggregates Corp.
(1/10)
Aug. 25, 1960 filed 100,000 shares of common stock (par
10 cents). Price—$4 per share. Business—The company
intends to engage in the extraction and sale of rock.

Proceeds—For

equipment, working capital, and the re¬
indebtedness, with the balance for general
corporate purposes. Office—7200 Coral Way, Miami, Fla.
Underwriters—Peter Morgan & Co., New York City, and

tirement

Robinson
•

Co..

Inc..

Cove Vitamin &

1960 filed 108,000 shares of common stock (par
cents), and five-year warrants for the purchase of
additional 108,000 shares of common stock to be of¬

fered

units, each unit to consist of one share and a
warrant for the purchase of one share. Price—$3,125
per unit. Business — Mail order marketing of vitamins
through department stores. Proceeds—To implement the
company's merchandising plan and for working capital.
Office—26 The Place, Glen Cove, L. I., N. Y.
Under¬
writer
Hill, Thompson & Co., Inc., and Globus, Inc.,
both of New York City.
Offering — Expected in early
January.
—

•

Cowles

Chemical

Co.

(1/9)

filed $2,500,000 of convertible subordinated
debentures, due Dec. 31, 1980. Price—To be supplied by
amendment. Business—The production and distribution
high purity chemicals for industrial use, primarily by
Proceeds — For expansion and construction.

laundries.

Office—Cleveland, Ohio. Underwriters—Shearson, HamCo., New York City and Gunn, Carey & Roulston,

mill &

Inc., Cleveland, Ohio (managing).
•

Nov. 17,

1960 filed 750,000 shares of common stock, $1,500,000 of 9% convertible debentures due Jan. 10, 1981,
and warrants, to be offered in units, each unit to consist
debenture and

one

warrant. Price—To be supplied by amendment. Business
—The construction of owner completed

("shell") homes.

Proceeds—To increase mortgage notes receivable and the

balance for

West

general corporate purposes. Office — 2915
Hillsborough Ave., Tampa, Fla. Underwriter —

Courts & Co.,

Atlanta, Ga. and New York City. Offering

—Expected in mid-January.

Address

None.

—

McMinnville, Tenn.

Underwriter

—

Daffin Corp.

Aug. 22, 1960, filed 150,000 shares of common stock (no
par).
The

Price—To be supplied by amendment. Business—
makes
agricultural implements, feed

company

grinding and mixing equipment for the livestock indus¬
try, and conveying and seed cleaning equipment. Pro¬
selling stockholders. Office—Hopkins, Minn.

ceeds—To

working capital. Office—1346 Connecticut Ave., N. W.,
Washington, D. C. Underwriter — Carleton Securitieg

working

Underwriter—Sterling,

Corp., Washington, D. C.

Grace & Co., 50 Broad St., New York City. Offering—
Indefinitely postponed.

Datamation, Inc.

Aug. 31,

1960

common

stock. Price—At par

Electro-Tech
Nov.

29,

1960

Brunt

common

ceeds—For

St., Englewood, N. J. Underwriter—Bertner. Broa>
Earl Edden Co., New York City.

gram

Price—At par

stock.

common

—For

new

($3

warehouse and sales

and working capital.

per

100,000 shares of
share). Proceeds

office, marketing

Dayton, Ohio. Underwriter—None.

Design, Inc.
Sept. 28, 1960 filed 100,000 shares of capital stock. Price
—$4.50 per share. Business — Development of vacuum
system components. Proceeds — For acquisition of land
and construction of a factory; purchase of new machinery
and tooling; inventory and working capital. Office—3163
Adams Ave., San Diego, Calif. Underwriter—None.
Detroit Tractor,

Ltd.
May 26 filed 1,375,000 shares of class A stock. Of this
stock, 1,125,000 shares are to be offered for the com¬
pany's account and the remaining 250,000 shares are to
be offered for sale by the holders thereof. Price—Not to
exceed $3 per share.
Proceeds—To be applied to the
purchase of machine tools, payment of $95,000 of notes
and accounts payable, and for general corporate pur¬
poses. Office—1221 E. Keating Avenue, Muskegon, Mich.
Underwriter—To be supplied by amendment.
Digitronics Corp.
Dec. 27,
—To be

1960 filed 50,000 shares of capital stock,
Price
supplied by1 amendment. Business—Makes digi¬
tal computers. Proceeds—To retire short-term loans and
for working capital. Office — ^lb£rt§pn,,I^, I., N. Y.
Underwriter

—

Granbery,

Marache

& Co., New York

(managing).

75,000

Mason

Edelstein

Electronic

Tube

Corp.

Nov. 28, I960 filed 100,000 shares of common stock. Price
—To

Delta

9f. notification)

(par 50 cents). Price—$4 per share. Pro¬
inventory, advertising and working capital.,

St., Portland, Oreg. Underwriter—
Co.,, Inc., New York, N. Y. Offering—•
Expected sometime in January.
.
.
Robert

pro¬

Office—1934 Stanley Avenue,

Instruments, Inc.

(letter

stock

Office—5

^ Dayton Plastics, Inc.
Dec. 9,
1960 (letter of notification)

(letter of notification)

250,000 shares of
($1 per share). Proceeds—
To purchase new
equipment, rental and for administra¬
tive costs. Office—115 Washington
Blvd., Roseville, Calif,
Underwriter—A. J. Taranto & Co.,
Carmichael, Calif.

(1/1.6-20)

(letter of notification) 80,000 shares of
common stock (par 10 cents).
Price—$2 per share. Busi¬
ness—The processing of paper work on a service basis
for business organizations to provide them with the costcutting and time-saving benefits of electronics. Proceeds
—For general corporate purposes. Office — 100 S. Van

•

Electro-Nuclear Metals, Inc.

1960

30,

facture

supplied by amendment. Business—The
and

sale

cathode

ray

tubes

manu¬

associated

and

electronic products. Proceeds—The acquisition of equip¬

ment; initiation of production; repayment of existing
indebtedness and for working capital. Office—1200 E,
Mermaid Lane, Philadelphia, Pa. Underwriter—Harrison
&

Co., Philadelphia, Pa. (managing).
Elion

Instruments, Inc. (2/1)
28, 1960 filed 60,000 outstanding shares of capital
stock (par 50 cents), together with five-year warrants
for the purchase of 6,000 new capital shares, to be of¬
Oct.

fered

for

tenth

such

sale
a

units

warrant.

one

sale

units. Price—To

will

stock

made

and

one-

less

than

the

price of the
company's stock in the over-the-counter market imme¬
diately prior to the offering. Business—The firm makes
and sells instruments and equipment for scientific and
industrial measurement and analyses. Proceeds—To sell¬
ing stockholders, who are two company officers who will
lend the net proceeds to the company. Office—430 Buck¬

ley

St., Bristol, Pa. Underwriter

Mandel

Emerson
Dec.

13,

—

Warner, Jennings,

Longstreth, Philadelphia, Pa.
Electric

1960

filed

Manufacturing Co.
* \
outstanding common shares.

54,033

* Dixie Natural Gas Corp.

Price—To be supplied by amendment. Proceeds—To the
selling stockholder (Klingbill Real Estate Co.). Office—

Dec,

St.

(1/16)
notification) 75,000 shares of
common stock (par 2 cents). Price—$4 per share. Busi¬
ness—Develops oil and gas leases in West Virginia. Pro¬
5,

1960

(letter

ceeds
For general business purposes. Office — 115
Broadway, New York 6, N. Y. Underwriter—Vestal Se¬
curities Corp., New York City.

Louis, Mo. Underwriters—Carl M. Loeb, Rhoades &
Co., New York and Scherck, Richter Co., St. Louis, Mo.
(managing). Offering—Expected in mid-January.
Falls

—

...

Diketan Laboratories, Inc.
Sept. 30, 1960 (letter of notification) 150,000 shares of
common stock (par $1). Price—$2 per share. Proceeds—
To increase

inventory, purchase

new

equipment^ for re¬

product development and working cap¬
ital. Office
9201 Wilshire Blvd., Beverly Hills, Calif.
Underwriter
Holton, Henderson & Co., Los Angeles,
Calif. Offering—Indefinitely postponed.
new

—

Dodge Wire Corp.

(3/1)

Dec. 7,

1960, filed 100,000 shares of common stock. Price
—$6 per share. Business—The manufacture of woven
aluminum screen cloth. Proceeds—The repayment of in¬
debtedness and general corporate purposes. Office—In¬
dustrial Blvd., Covington, Ga.
Underwriter—Plymouth
Securities Corp., New York City.
•

Does-More Products

Oct.

Corp.

(12/30)

(letter of notification) 75,000 shares of
common stock (par 10 cents). Price—$4 per share. Pro¬
ceeds
To pay notes payable, purchase inventory, for
purchase of die and equipment and additional working
capital. Office—201 W. Semmes St., Osceola, Ark. Un¬
12,

1960

derwriter

—

H. L.

Wright & Co., Inc., New York, N. Y.

Drexel

Equity Fund, Inc. (1/4)
Oct. 25, 1960 filed 500,000 shares of common stock (par
10 cents). Price—$10.20 per share.
Business—This is a
new mutual fund, organized as a closed-end fund on Oct.
19, which will become open-end pursuant to- the public
Proceeds—For portfolio investment.
Street, Philadelphia, Pa. Distribu¬
tor and Investment Adviser—Drexel & Co., Philadelphia,
Office—1500 Walnut

Pa.

Eastern

■

Bowling Corp.

29, 1960 filed 150,000 shares of class A stock. Price
supplied by amendment. Business—The acquisi¬
tion, establishment and operation of bowling centers.
Proceeds—For
general business purposes. Office—99
West Main St., New Britain, Conn. Underwriter—Schirmef, Atherton & Co., Boston (managing).

Engineered Products, Inc. (1/9)
(letter of notification) 100,000 shares of
common stock (par one cent). Price—$3 per share. Pro¬
ceeds—For plant improvements, purchase of new equip¬
ment, retirement of a short term loan and for working
capital. Office—350 N. E. 75th St., Miami, Fla. Under¬
writer—Albion Securities Co., Inc., New York, N. Y.
Nov.

25, 1960

Edwards

Industries, Inc.

Plaza

Limited

Partnership

Dec. 5, 1960 filed 480 units of limited partnership inter¬
ests. Price—$1,000 per unit. Business—The building and

operation of a shopping center on Broad Street in Falls
Church, Va. Proceeds—For the purchase of land and the
erection of a shopping center. Office — 1823 Jefferson
Place, N. W., Washington, D. C. Underwriter—Hodgdon
& Co., Inc., and Investor Service Securities
Inc., both of
Washington, D. C.
"

ic Farm Management Associates, Inc.
19, 1960 (letter of notification) 125 shares of class
A common stock (par $10) and 900 shares of class B
common
stock (par $10).
Price—$100 per share. Pro¬
ceeds—For promotion, rents and working capital. Office
—441 Summer Street, Stamford, Conn.
Underwriter—
Dec.

None.

First

American

Investment

Corp.

Oct.

14, 1960 filed 2,500,000 shares of common stock.
Price—$2 per share. Business—Insurance. Proceeds—To
acquire control of Western Heritage Life Insurance Co,
of

Phoenix, and to organize subsidiaries. Office—2222 N
Phoenix, Ariz. Underwriter—None.

16th St.,

First

Small

Business

Investment

Company

Tampa, Inc.
Oct. 6, 1960 filed 500,000 shares of
—$12.50

per

share. Proceeds

—

common

stock. Price

To provide investment

capital. Office—Tampa, Fla. Underwriter—None.
Florida

Guaranty Title & Trust Co.
1960 (letter of notification) 83,125 shares of
common
stock
(par 50 cents). Price—$3.60 per share.
Proceeds
To pay a second mortgage instalment, for
advertising, and for working capital. Office—1090 N. E.
Nov.

29,

—

79th

St., Miami, Fla.
Co., Inc., Chicago, 111.
•

Nov.

—To be

Edlund

ic Cumberland Caverns, Inc.
14, 1960 (letter of notification) 700 shares of com¬
mon
stock (no par).
Price—$50 per share. Proceeds—
For construction of buildings, advertising and working
Dec.

capital.

Proceeds

sale of these shares.

Crumpton Builders, Inc.

of five shares of common stock, one

share.

additional

75,000 shares ol
(no par) and 20,000 shares of addi*

additional class A common, 2 y2 cents per share. Proceeds
—To expand the company's
inventory to go into the
packaging and export of electrical equipment, and for

shares for

—

Nov. 29, 1960

per

and

notes

new

—

Inc.

Dec. 22,
50

Price—$1.25
of

Office—Norwood,

search and

Philadelphia, Pa.

Pharmaceutical

held.

retirement

the

capital.

commercial

Ark.

431,217 shares of common stock to be
subscription by holders of such stock of

record Oct. 7 at the rate of one-and-a-half

common stock

tional class A common stock to be offered to the under¬
writers. Prices—Of class A
common, $2 per share; of

filed

for

Industries, Inc.
(letter of notification)

1960

19,

class A

Corp.

offered

—For

July

and

Consolidated Realty Investment Corp.

fund for initial and

Electro

Piper,

Nov.

Dec.

(2693)

Underwriters—Lehman

Consolidated Airborne

Systems, Inc. (2/15)
Dec. 15, 1960 filed 180,000 shares of class A stock. Price
—To be supplied by amendment.
Business—The design,
development and production of proprietary devices in
the field of electronic and cryogenic ground support
equipment and airborne instrumentation for the military
and commercial aircraft industry. Proceeds — For debt
reduction, research, development and expansion of man¬
ufacturing facilities and for working capital. Office—900
Third Ave., New Hyde Park, N. Y. Underwriter—S. D.
Fuller & Co., New York City (managing).

Chronicle

Underwriter—Floyd

Florida Suncoast Land &

Cerf Jr.

Mining Co.

Sept. 30, 1960 filed 1,050,000 shares of common stock, of
which 330,000 shares are to be offered in exchange for
certain lands and assets, and the balance will be for
public sale. Price—To be supplied by amendment. Pro¬
ceeds
For the acquisition and development of land,
mining operations and equipment, and the balance for
working capital.
Office—Tarpon Springs, Fla.
Under¬
—

writer—None.

Note—This

statement

was

effective

Dec.

27.

Foremost
Oct.

14,

1960

Industries, -inc.
(letter of notification)

100,000 shares of

stock (par 50 cents). Price—$3 per share. Busi¬
ness—Manufacturers of stainless steel food service equip¬
common

ment used

Sept. 27, 1960 filed 100,000 shares of common stock. Price
—$4.50 per share. Proceeds — For land, financing of

homes, and working capital relating to such activities.
Office—Portland, Oreg. Underwriter—Joseph Nadler &
Co., Inc., New York City (managing). Offering—Expect¬
ed in mid-January.

by department, drug and variety chain stores,
and institutions. Proceeds—For expansion; to repay a
loan; advertising, sales and promotion; for working cap¬
ital and general corporate purposes. Office—250 W. 57tb
St., New York, N. Y. Underwriter—Richard Bruce & Co..
Inc., New York, N. Y.
Continued

page

The Commercial and Financial Chronicle

(2694)

Continued from page 29

^ Grayway Precision, Inc. (2/7)
23, 1960 (letter of notification)

Dec.

Inc.

Freoplex,
Nov.

(1/16-20)

(letter of notification) 60,000 shares of
(par 10 cents). Price—$5 per share. Busi¬
ness—The sale and servicing of home food freezers; the
sale of bulk food supplies for freezer use and the opera¬
1960

25,

stock

common

tion

retail

super

market. Proceeds

For general

—

ness—Manufacturers of precision instruments.
—For

Brunswick,, N. J. Underwriter—Alessandrini & Co., Inc.,
.

general

Philadelphia,
York, N. Y.

Oct.

Industries,

Inc.

Proceeds

Office—121

Centre

(letter of notification) 16,000 shares of
common stock
(par 25 cents). Price—$5 per Share. Pro¬
ceeds
For equipment, advertising and sales, working
capital, research and development. Address -— Clifton
Forge, Va. Underwriter—Storer Ware & Co.. Roanoke,

Industries,

Inc.

Nov. 10, 1960 filed 500,000 shares of outstanding common '

(par 10 cents). Price—$3 per share. Proceeds—To

to selling stockholders. Office—485 Fifth Ave., New
York, N. Y. Underwriter—J. G. White & Co., Inc., New

York, N. Y.

—

Va.

'
,

Garsite

■'<$' V"

Corp.

Oct. 12, 1960 filed 100,000 shares of common

—$3

£•

^ Greenfield Real Estate Investment Trust
Dec. 21, 1960, filed 500,000 shares of beneficial interest.
Price—To
company

stock. Price

share. Business—A hydrant jet filing com¬
pany. Proceeds-^-Expansion. Office—Seaford, L. I., N. Y.
Underwriter—Theodore Arrin & Co., Inc., 82 Beaver St.,
New York City.
per

diana

County, Pa., on wMfch it hopes to build a third.
Proceeds—To equip the prospective establishment ($150,-

($50,000), to add eight lanes
to a bowling facility ($50,000), and the balance will be
used for working capital. Office—2 Park Avenue, Man000), to repay a bank loan

hasset, L. I., N. Y. Under writers-r-H. S. Simmons & Co.,
Inc., and McMahori, Lichtenfeld & Co., both of New York

interest in

Proceeds—For

investment.

sidiary of General Development Corp., whose principal
land into

—

Bankers

Securities

Instrument Corp.
filed 110,000 shares of common stock. Price

—$3 per share. Proceeds

—

For general corporate pur¬

including debt reduction, machinery and equip¬
ment, inventory, and working capital. Office—Hoboken,
poses,

J.. Underwriter—Michael

York

G. Kletz & Co., Inc., New
City. Offering—Expected in late January.
'

Gulf Guaranty
ated

debentures

$200

convertible subordin¬

per

and

unit. Business

—

common

stock.

The development of

Gulf

planned

Nov.

29,

1960

Utilities

filed

Co.

(1/17)

350,000 shares of common stock.
short-term notes, for construction,
Office—Beaumont, Tex.
by competitive bidding.

Proceeds—To

planned communities. Office—2828
Miami, Fla. Underwriter—None.

repay

Probable

•

General Foam Corp.

1960, filed $550,000 of 6% convertible subordin¬
debentures, due 1976. Price—At 100% of principal
amount. Business—The manufacture and distribution of
ated

urethane foam and foam rubber products.

Proceeds—For
new
equipment and working capital. Office—640 West
134th St., New York City. Underwriter—Brand, Grumet
& Seigel, Inc., New York City (managing). Offering—
Expected in early February.
Genie

Petroleum, Inc.

Nov. 10, 1960

bidders: Stone & Webster Securities Corp.;
Brothers; Glore^ Forgaii & Co.; Lee Higginson
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. Bids
—Expected Jan. 17, 1961. Information Meeting—Sched¬
Lehman

Dec. 16,

filed 838,718 shares of common stock. Price

uled for Jap. 12 at 11:00
York

Irving Park Road, Chicago, 111. Underwriter—The is¬

suer

intends to become

licensed broker-dealer in -the

states in which this offering is to be

made, and to offer
338,718 of the shares through its officers and employees.
The remaining 500,000 shares will be offered through
other

licensed

Geochron

Nov.
filed

broker-dealers

Laboratories,

Inc.

"best efforts'! basis.

(1/9-13)

notes

number

and

60,000

warrants to purchase a like
shares. Price—To be supplied by

common

amendment. Business—The

operation of

Cambridge, Mass., to furnish
terminations

Proceeds

the

age

rock

laboratory at

commercial basis, de¬
and mineral samples.

For

construction, equipment, and working
capital. Office — 24 Blactetone St., Cambridge, Mass.
Underwriter—Globus, Inc. and Ross, Lyon & Co., both
of New York City.
—

Glamour
Nov.

Vending Corp.
(letter of notification)

1960

25,

140,000 shares of
(par 50 cents). Price—$2 per share. Pro¬
purchase vending machines, for inventory and
for working capital. Office—1212 Tower
Bldg., Denver,
Colo. Underwriter—J. R. Holt & Co., Denver. Colo.
common

stock

ceeds—To

Gold Medal

Packing Corp.

June 17, I960, filed 100,000 shares of 25c convertible
pre¬
ferred stock (par $4).
Price—At par. Proceeds—Ap¬

proximately $150,000 will be used to discharge that
portion of its obligation to Jones & Co. pursuant to
which certain inventories are pledged as collateral. The
indebtedness to Jones & Co. was
initially incurred on
June 15, 1960 in connection with

refinancing the

pany's obligations to
be used

for

the

bank.

construction

house, and the balance will

In addition.

com¬

$15,000 will

additional

smoke¬

be used for general corporate

Office—614 Broad Street, Utica, N. Y. Busi¬
ness—The company is engaged in the
processing, pack¬
ing and distribution of meats and meat products, prin¬
purposes.

cipally

sausage

products, smoked meats, bacon, and meat
specialties. It also sells certain dairy products. Under¬
writer—Ernst Wells, Inc., 15 William
Street, New York
City.
•

Golden

Crest

Records, Inc.

Dec. 16, 1960 filed 85,000 shares of
10c par class A com¬
stock.
Price—$3 per share. Proceeds—The firm
will use the proceeds of
its first public
offering for

mon

working capital and general corporate
purposes. Office
—Huntington, L. I., N. Y. Underwriters—Dean Samitas
& Co.,
Inc., Ill Broadway, New York City and Valley
Securities Co., Inc.,
Philadelphia, Pa. (jointly).

Offering—Expected

in late January.

and

advertising

its
such

pro¬

beverages, and whert
bottlers, etc. Office¬

Denver, Colo. Underwriters— Pur¬

vis &

Co. and Amos

Colo

Sudler

•/:■■■'■

•>

Co., both of Denver,
\ '

• Nikon Corp.
Dec. 23, 1960, filed 75,000 shares of
—$5
June
the

common

stock. Price

share; Business—The company was formed
1960, to undertake research and development

per

field

ceeds—To

in
engineering and science." Pro¬
work on projects now in the labo¬

"materials

carry

ratory stage and for general corporate purposes. Office—
Natick, Mass. Underwriter—Myron A. Lomasney & Cov
New York City.
Illinois

April

Pa.

Offering—Expected in early February.

Beef, L. & W. S., Inc.

filed

200,000

Proceeds—To

of outstanding common
stockholders.
Price—$10

Office—200 South Craig Street, Pittsburgh,
Underwriters—Amos Treat & Co., Inc.. New York;

Lenchner, Inc., Pittsburgh, Pa. Offering—Ex¬

pected in February.
•

selling

share.

and Bruno

Industrial

Control

Products, Inc.

Nov. 1, 1960 filed 125,000 shares of 100
par class A stock.
Price—$4 per share. Business—The design and manu¬
of

control

systems and

The/firm

has

subcontracted

recently

begun

precision
make

at the Hanover Bank, New

Proceeds—For

semi-conductor

production, research
development, advertising and selling, inventory, and
eral

funds.

ship,

Office—78

Clinton

Industrial

25,

and
gen¬

Road, Caldwell Town¬
Hindley & Co., 99
(managing);

Underwriter—Edward

Wall Street, New York 5, N. Y.

Leasing Corp.

1960

(letter of notification) 1,000 shares of
(par $5). Price—$45 per share. Proceeds—
selling stockholders. Office—515 S. Aiken Ave.,
Pittsburgh, Pa. Underwriter — McKelvy & Co., Pitts¬
burgh, Pa.
stock

common

To go to

International

Diode

Corp.

y
non-cumulative

July 29, 1960 filed 42,000 shares of 6%
convertible

share.

preferred

stock

Business—Makes

establish

staff

(par
sells

and

$8).

Price

diodes.

—

per

Proceeds—To

production and sales

engineers, fi¬
equipment, and
working capital. Office—90 Forrest St., Jersey
City, N. J. Underwriter—Ernst Wells, Inc., New York
City.
'
■'
•
'.
nance

add

product

new

development,

buy

^ Hawaiian Land Contract Corp.
13, 1960 (letter of notification) 25,000 shares of
stock (par $1). Price—$5 per share.
Proceeds
—For working capital.
Office—5564 Kawaikui Street,

Dec.

Honolulu, Hawaii.

which

Dec.

Heinicke

Underwriter—None.

Instruments

Co.

(1/10)

Nov. 10,

1960 filed 67,000 shares of common stock. Price
To be supplied by amendment. Business—The company,
together with its subsidiaries, makes stainless steel
pumps

and
used

for its

own

manufactures
in

the

and sale to others, and designs
high frequency cleaning equipment
use

cleaning

and

sterilization

glassware.

Proceeds—To reduce by $300,000 the issuer's note in the
amount of $470,000 payable to its president, Dr. Kurt J.

International

Electronic Research Corp.
(1/30)
1960 filed 220,000 shares of common stock, of
110,000 shares will be sold by the company and
110,000 shares for the account of selling stockholders.

Price—To
duces

Home

Builders

amendment.

Business—Pro¬

writer—Schwabacher

& Co., San
Francisco, Calif,
City (managing).

New York

International Mosaic

30,

common

ness

—

1960

(letter of

and

Corp.
notification) 99,333 shares of
Price—$3 per share. Busi¬
mosaics by machines and

stock (par 10 cents).
Manufacture of glass

Proceeds

processes.

Acceptance Corp.

July 15, 1960 filed 1,000,000 shares of common stock (par
50c). Price—$1 per share. Business—The company is
engaged in real estate financing and lending. Proceeds
—For
general
corporate
purposes.
Office — 409
N.

instruments, and does subcontract work
industry. Proceeds—To
outstanding loan;] and increase working capital.
Office—135 West Magnolia Blvd.,
Burbank, Calif. Under¬

•

Hollywood, Fla. Underwriter — Pierce, Carrison,
Wulbern, Inc., Jacksonville, Fla. (managing).

supplied

dissipating tube shield for electron tubes,

repay

Sept.

St.,

heat

in the aircraft and rocket engine

other general corporate purposes.

Office—2035 Harding

precision

Heinicke, with the balance for plant and equipment and

29, 1960 filed 150,000 shares of common stock. Also
were
30,000 common shares underlying 6% con¬

vertible

a.m.

City.

common

—$1

per share. Business—Development of oil properties.
Proceeds—For general corporate purposes. Office—5245

enfranchising of bottlers, the local and national

accessary to maxe loans
rs Equitable
Bldg.,

Nov.

and general corporate purposes.
Underwriter—To be determined

Street.

and

expenses

Price—

Co., New York City.

States

(par $1).

per share.
Proceeds—To further the corpo¬
rate purposes and in the
preparation of the concentrate

double-diffused, broad base silicon diodes, but is not vet

community in Cape Coral, Fla. Proceeds—To reduce in¬
debtedness, repay a mortgage, construction, and general
corporate purposes. Office—Miami, Fla. Underwriter—
Street &

St., Salt Lake City,

in commercial production of these items.

common

units, each unit to consist of $100
shares

8th

Price—$2.50

machining.

debentures, due 1968 and 150,000 shares of

South

Inc.

facture

Land & Title Co.

Nov. 29, 1960 filed $750,000 of 7%

1750

—

June 2y tiled 600,000 shares of common stock

per

Guild Musical
Oct. 25, 1960

business is the development of large tracts of

S. W. 22nd

Office

Thursday, December 29, 1960

Underwriter—Whitney & Co., Salt Lake Citv.Utah.

jtock.

Development Investment Plans, Inc.
Oct. 6, 1960 filed 1,285 of Investment Plans. Price—To
be offered for public sale with sales commissions rang¬
ing from 8% to 10%, depending upon the type of mort¬
gage financing involved.
Proceeds—For investment in
Port St. Lucie Country Club homes, on the east coast of
Florida. Business—The company is a wholly-owned sub¬

Office

February.

stock to be offered in

General

diversified income-producing

Bldg., Philadelphia, Pa. Underwriter — Drexel & Co.,
Philadelphia (managing). Offering—Expected in early

General

Bowling Corp. (1/23-27)
17, 1960 filed 250,000 shares of common stock (par
100).
Price—$4 per share. Business—The issuer owns
two bowling establishments, and a tract of land in In¬

supplied by amendment. Business — The
organized on Dec. 20, 1960 lo provide in¬

properties consisting principally of real estate interests.

Nov.

City.

be
was

vestors with

Utah.

motion

1960

25,

purposes.

Underwriters—Harrison & Co.,
Marron, Sloss & Co., Inc., New

and

Pa.

American

Great

stock
Gala

corporate

Avenue, Secaucus, N. J.

corporate purposes..,Address—Route 18, Tices Lane, East
New York City.

stock (par 10 cents).

common

pansion.

75,000 shares of
Price—$4 per share. Busi¬

—

For

general corporate

purposes.

Office—45 East 20th
—B. G. Harris &

St., New York 3, N. Y. Underwriter
Co., Inc., New York, N. Y.

Invesco

Oct. 4, 1960 filed 140,000 shares of outstanding common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders.
Address — Fort Worth, Texas.
Underwriters—G. H. Walker & Co., New York, N. Y. and

Collateral Corp.
(2/15)
1960, filed $300,000 of 6% registered debentures,
series due June 30, 1964; $300,000 of 6%
registered de¬
bentures, series due June 30, 1965, and $300,000 of 6%
registered debentures, series due June 30, 1966. PriceTo be offered for sale in
$5,000 units at $4,450 per unit
for the 1964 debentures, at $4,315
per unit for the 1965
debentures and at $4,190 per unit for the 1966 deben¬

Dewar, Robertson & Pancoast, San Antonio, Tex. Offer¬
ing—Indefinitely postponed.

ing

Nevada,

Colorado Springs, Colo.

Underwriter—None.

Howell Instruments Inc.

•

Hydro-Electronics Corp.
21, 1960 (letter of notification) 150,000 shares of
common stock (par one
cent). Price—$2 per share. Busi¬
ness—The design and manufacture of precision measur¬
ing equipment, automation equipment and general pre¬
cision fluid controls. Proceeds
For general corporate
purposes.
Office—691 Merrick Road, Lynbrook, L. I.,
N. Y.
Underwriter—Lloyd Securities, New York, N. Y.
Offering—Expected in early February.
Nov.

—

Hydromatics,

Inc.
Nov. 25, 1960 filed $1,000,000 of debentures, due Jarf? 1,
1971

with; warrants for the purchase of

to be offered

debenture and
mon

common

units, each unit to consist of

one

stock
$1,000

warrant; and 20,000 outstanding com¬

shares. Price—To be supplied by amendment. Busi¬

ness—The

designing, manufacturing and selling of ball
valves. Proceeds—To retire bank loans, purchase addi¬
tional equipment and for working capital.
Office — 5
Lawrence St., Bloomfield, N. J.
Underwriters — Paine,
Webber, Jackson & Curtis and Tucker, Anthony & R. L.
Day, both of New York (managing).
Hydroswift Corp.
Oct. 20, 1960 filed 70,000 shares of common stock.

Price

—$5 per share.' Business—The firm, which was organ¬
ized in February, 1957, makes and wholesales products
and services for

the

fiberglass industry, including par¬
boats known as "HydroSwift" and

ticularly fiberglass
"Skyliner." Proceeds—For general funds, including ex¬

Dec. 8,

tures.

Business—The
purchasing, investing in and sell¬
of real estate mortgages.,; However, the company
may buy, invest in and sell other types of securities.
Office—511 Fifth Ave., New
York, N. Y. Underwriter—
None. Note—This company is a
wholly owned subsidiary
of Investors Funding Corp. •
.
Investors

Preferred

Life

Insurance Co.

■

Sept. 26, 1960

(letter of notification) 150,000 shares, of
(no par). Price—$2 per share. Proceeds
—For capital and surplus accounts. Off
ice—522 Cross St.,
Little Rock, Ark. Underwriter
Life Securities, Inc..
P. O. Box 3662, Little
Rock, Ark.
common

stock

—

Iowa Power & Light Co.
(1/11)
Nov. 7, 1960 filed $10,000,000 of first
due

1991.

ceeds—To

for
at

mortgage bonds,
Pro¬
past and future bank loans incurred

Price—To be
reduce

supplied by amendment.

construction, the aggregate cost of which is estimated
$20,500,000 for 1960-1961. Office—823 Walnut Street,
Moines, Iowa. Underwriter—To be determined by

Des

competitive

bidding.
Probable bidders: First Boston
Corp.; Equitable Securities Corp.; White, Weld & Co.;
Halsey, Stuart & Co. Inc., Lehman Brothers; Eastman
Dillon, Union Securities & Co.; Blyth & Co. and Kidder,
Peabody & Co. Bids—Expected to be received on Jan. 11
up to 10:00 a.m. (CST) at the Assembly Room, 8th floor,
Harris Bank Bldg., Ill W. Monroe
St., Chicago, 111.

Irving Fund for Investment in U. S. Government
1
Securities, Inc.
July 22, 1960, filed 400,000 shares of common stock.
Price

—

$25 per share.

Business —A diversified invest-

Volume

6016

Number

192

The Commercial and Financial Chronicle

(2695)
ment company, which

"Lapidoth"

Israel Oil Prospectors Corp. Ltd.
1960 filed 1,500,000 ordinary shares. Price—To
supplied by amendment, and to be payable either
totally or partially in Israel bonds. Business—The com¬

will become an open-end company
upon the sale and issuance ol
shares being registered.
Proceeds—For investment

with
the

redeemable

York

Broad

Counsellors,

pany

fund debentures, series A, due 1975, and 100,000 shares
of common stock underlying such debentures. Price—To
be offered in denominations of $500, $1,000 and $5,000,

Office—17

East

71st

St.,

New

York

common

and

nt. Proceeds—To establish sales and information

ter/

Nov.

28,

1960
stock

Business

—

cen-

manufacture

dolls, toys and similar

May

ing capital/Office—346 Carroll St., Brooklyn, N. Y. Un¬
derwriter—Edward H. Stern & Co., 32 Broadway, New
-

•

29,

1960 filed $7,000,000

1991.

Price—To

(jointly);

Halsey,

postponed*
Life

This offering has temporarily been

,/•

Assurance

*•»■,

Co.

...;

.u*

•

Lifetime

Pools

Equipment Corp.
July 1, 1960, filed 175,000 shares of common stock. Price
—$3.25 per share. Business—Engaged in the manufacture
and selling of fiber glass swimming pools. Proceeds—
$125,000 will be used to purchase machinery and equip¬
ment; $200,000 to purchase raw materials, parts and com¬
ponents; $40,000 for sales and advertising promotion;
$30,000 for engineering and development; and the bal¬
ance will be added to
working capital. Office—Renovo,
Pa. Underwriter—Grant, Fontaine & Co., Oakland, Calif.
Note—Statement effective Nov. 23. Offering—Expected
in mid-January.

Inc.;

& Co. and Stone

Lone.Star Gas Co.

(1/6)

Dec. 6, 1960 filed a maximum of 665,838 shares of com¬
mon stock
(par $10) to be offered to holders of record

(EST) Room 240, 2 Rector St- New York Citir.

if Kleer-Vu Industries, Inc.
Dec. 21, 1960, filed
115,000 shares of common stock.
Price—$3.50 per share. Business—The company, former-^
ly Ameircan Kleer-Vu Plastics, Inc., is engaged primar¬

Jan. 5 on the basis of one new share for each 10 shares
then held, with rights to expire on Jan. 23. Price—To be

supplied by amendment. Business—The operation of gas
transmission lines and distribution systems in Oklahoma
and Texas. Office—301 South Harwood St., Dallas, Tex.

ily in the business of manufacturing acetate and poly¬
ester transparent accessories and related items. Pro¬

Proceeds—Repay short-term loans and for construction.

ceeds—To

Underwriter—First

retire

loan, purchase additional equipment,
enlarge plant facilities, hire more staff engineers, and
provide additiohal working capital. Office—76 Madison
Ave., New York City. Underwriters—Paul Eisenberg Co.,
and Godfrey, Hamilton, Magnus & Co., Inc., both of New
York City (managing).,Offering—Expected in late January.
•
•/
' ' V
'
■
/ • "■
'■ a

and

cells

used

for

the

purpose of blood grouping and
also operates blood donor centers
in New York and Philadelphia. Proceeds—For the
selling

testing. The

company

stockholders.

Office—300

West

43rd

Street, New York

City. Underwriter—None.
LP Gas

Sept.

27,

common

Savings Stamp Co., Inc.

1960
stock

(letter

Price—At

notification)
par

($10

30,000

—For purchase of creative

design and printing of cata¬
logs, stamp booklets, advertising and for working cap¬
ital. Office—300 W. 61st St., Shreveport, La. Underwriter
.—International Sales & Investment, Inc., 4501 North
Blvd., Baton Rouge, La.
'
Lake

Central

Airjines, Inc.

(1/12)
130,000 shares of $20 par preferred
stock, Price—To be supplied by amendment. Business—

Nov.

1960

The issuer is
in. the
bank

filed
a

local service airline

midwest.

loan,

the

operating primarily

Proceeds—Together witli a $3,000,000
will be used to acquire more

proceeds

planes

and for other purposes germane to expansion.
Office—Indianapolis, Ind. Underwriter—William Blair &

Co., Chicago, 111. (managing).

(heading

group

for

Electronic Corp.
Oct. 5, 1960 filed 110,000 shares of common stock (par
10 cents). Price—$4.25 per share. Business—The design,
manufacture and sale of electronic equipment for use
primarily in weapons and data processing systems/Pro¬
ceeds—Reduction

indebtedness

and

working

capital.

Office—200 Stonehinge Lane, Carle Place, N. Y. Under¬
writer—McLaughlin, Kaufman & Co., New York City.

Marine

Electronics

Manufacturing Inc.
(letter of notification) 100,000 shares of
common
stock class A (par 10 cents).
Price—$3 per
share. Proceeds—For expenses in the fabrication of sheet
metal parts for missiles, rockets, radar and marine items.
Address—Hagerstown, Md. Underwriter—Batten & Co.,
Washington, D. C.
Sept. 22, 1960

Marine

View

Electronics, Inc.
28, 1960 (letter of notification) 100,000 shares of
common
stock
(par 10 cents).
Price — $3 per share.
Business—Manufacturers of electronic equipment.
Pro¬
ceeds—For
general corporate purposes.
Office—88-06
Van Wyck Expressway, Jamaica 18, N. Y. Underwriter
—Fund Planning, Inc., New York, N. Y.
Offering—In¬
Oct.

definite.

(2)

$969,000

offered

approximately
5,000 shares of

unit; (2) 100%

per

of the

company

are

Business
office

—

debentme

per

The

principal

building at 1910 K

Underwriter—None.

Metropolitan Securities, Inc.
Nov. 17, 1960 (letter of
notification)
_

class

common

Proceeds

—

stock

(par $1).

100,000 shares of

Price—$3

For working capital.

Office

W., Washington, D. C.
Underwriter
Brokers, Inc., Washington, D. C.
Mid-America Life Insurance Co.
Oct. 11, 1960 (letter of
notification)
common

—

share.

per

919-18th St.,

—

Metropolitan

100,000 shares

stock

(par 25 cents). Price — $2.75 per share.
Proceeds—For capital and surplus
accounts. Office—318
Northwest 13th St., Oklahoma

City, Okla. Underwriter—
Co., Oklahoma City, Okla.
Capital Corp. (2/1)

F. R. Burns &
•

Midland

Dec. 16, 1960 filed 1,300,000 shares of
common stock (par

$1). Price—$12.50 per share. Business—The corporation
organized in August 1960 by Marine Midland
Corp.,
a bank
holding company, as a small business investment

was

company, Proceeds — To provide
and investment capital to small

management services

business

fice—241

concerns.

Of¬

Main

St., Buffalo, N. Y. Underwriters—East¬
man Dillon, Union Securities &
Co., and Granbery, Marache & Co., both of New York
City (managing).
Midland-Guardian Co.
Oct. 27, 1960 filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business
The firm
discounts retail instalment sales notes for dealers in shell
—

homes, mobile homes, and

cars;

finah^es at wholesale

inventories of dealers in mobile homes and
cars; makes
directly to borrowers; and operates various
insurance subsidiaries,

small loans

including a life insurance com¬
Proceeds—To repay short-term bank
loans, which
Sept. 30 amounted to $31,529,000. Office—1100 First
National Bank Bldg.,
Cincinnati, O. Underwriter—Kid¬
der, Peabody & Co., New York City (managing). Offer¬
ing—Expected in late January.
pany.

Midwestern Acceptance Corp.
Sept. 8, 1960, filed 1,169,470 shares of common stock and
$994,050 of 6% debentures, to be offered for public sale
in

units

Price

if Marmac Industries, Inc.
Dec. 22,
1960, filed 108,000 shares of common stock.
Price—$4.50 per share. Business—The manufacture and
sale of wood cabinets.
Proceeds—For general business
purposes. Office—Wenonah, N. J. Underwriter—Metro¬
politan Securities, Inc., Philadelphia (managing). Offer¬
ing—Expected in early February.

—

one

per

unit.

stock

Business

and
—

interim

850

Th^

debentures.

company will do
Pro¬

financing in the home building industry.
ceeds
To start its lending activities. Address
Box 886, Rapid City, S. D. Underwriter—None.
—

—

P. O.

if Milo Electronics Corp.
Dec. 27, 1960 filed 150,000 shares of common stock. Price
—$5 per share. Proceeds—For debt reduction, inventory,
and general corporate purposes. Office—530 Canal
St.,
New York City.
Underwriter—Myron A. Lomasney &

Co., New York City (managing).
Mineral Concentrates & Chemical
Co., Inc.
Nov. 10, 1960 filed 75,000 shares of common stock. Price

—$5 per share. Business—Production of beryllium oxide.
Proceeds—To pay two corporate notes; plant improve¬
ments; research and experimentation with flotation
process; and working capital. Office—1430 First National
Bank Bldg., Denver, Colo. Underwriter—None.

Minneapolis Gas Co.
21, 1960, filed 228,346 shares of common stock to
be offered for subscription by common stockholders on
the basis of one share for each eight shares held. PriceTo be supplied by amendment. Proceeds — For
repay¬
Nov.

ment

Madigan

share). Proceeds

per

Corp.

unsubscribed for shares).

if Knickerbocker Biologicals, Inc.
Dec. 23, 1960, filed 100,000 outstanding shares of class A
stock. Price—$6 per share. Business—The
manufacture,
packaging and distribution of a line of diagnostic serums

Boston

convertible

—

(1/17)

Co.

—

Pennsylvania
Nov. 29, 1960 filed 60,000 shares of capital stock. Price—
To be supplied by amendment. Proceeds—For invest¬
ment in
income producing securities
and mortgages.
Office
Philadelphia, Pa. Underwriter — Auchincloss,
Parker & Redpath, Washington, D. C. (managing).

determined

Stuart

Co., New York, N. Y.

Ltd.

New York. Note

Eastman Dillon,
&/Webster Securities
Corp. (jointly); Glore, Forgan & Co.; Kuhn, Loeb & Co.,
and A. C. Allyn & Co. (jointly). Bids — Scheduled for
Jan. 17 at 11 a.m. (EST), Room 240, 2 Rector St., New
York City. Information Meeting — Jan. 16 at 11 a.m.
Union Securities

Ore

units, to be supplied by amendment, and not to be in
of par. Proceeds—To make loans to Lamco. Office
—97 Queen St., Chprlottetown, Prince Edward
Island,
Canada, N. S
Underwriter—White, Weld & Co., Inc.,

first mortgage bonds,
at competitive bid¬
ding. Proceeds—To retire bank loans and for company's
construction program. Office — 201 North Market St..
Wichita, Kansas. Underwriter — To be determined by
competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Smith and Kidder, Peabody & Co.
due

Iron

excess

Kanavau Corp.
Sept. 30, 1960 filed 250,000 shares of common stock (par
$1). Price—$10 per share. Business—A real estate invest¬
ment company. Proceeds—For acquisition of
properties,
working capital and general corporate purposes. Office—
415 Lexington Ave., New York, N. Y. Underwriter—Ira
Investors Corp., New York, N. Y. Offering—Expected in
early February.
Nov.

1960

units will consist of $500 of collateral trust
bonds, $500
of debentures and 15 shares of capital stock. Price—For

Jungle Juice Corp.
28, 1960 (letter of notification) 120,000 shares of
common
stock (par 25 cents). Price—$2.50 per share.
Proceeds—For working capital and expansion. Address
—Seattle, Wash. Underwriters—Planned Investing Corp.,
New York, N. Y. and Fidelity Investors Service, East
Meadow, N. Y. Offering—Expected sometime in Janaury.
Oct.

Kansas Gas & Electric Co.

Communications

28,

joined with The Liberian American-Swedish
Minerals Co., Monrovia, Liberia, in the filing of
$15,000,000 of 6 Yi % first lien collateral trust bonds, series A,
due 1980, of Lio, $15,000,000 of 6^4% subordinated de¬
bentures due 1985
of Lio, an unspecified
number of
shares of Lio capital stock, to be offered in units.
The

Proceeds—For expenses of offering; the purchase
and installation of machinery and molds and for work¬

receivable, inventories and purchase of equip¬
ment. Proceeds—For working capital. Office—440 West
34th Street, New York City. Underwriter—Edward
Lewis
& Co., Inc., New York (managing).

and not to exceed

$10 per share of stock.

D. C.

accounts

debentures due 1961, and to construct or
acquire income
producing properties. Office-1625 Eye St.,
Washington,

Corp.

200,000 shares of class A stock and
200,000 warrants to be offered in units of one share and
one warrant.
Price—$4 per unit. Business—The company
plans to engage in business of advancing funds to finance

Liberian

items.

York, N. Y.

Credit

St., N.W., Washington, D. C. Proceeds—To retire cer¬
tain obligations; make improvements
on
property; retire'

1960 filed

N. Y. Underwriter—H. B. Crandall

(letter of notification) 300,000 shares of
(par five cents). Price — $1 per share.

The

29,

$1,100,250

to be offered in

Price—(1) $1,100

and

properties in West Sacramento, Calif., Ferndale,
Mich. Office—41 East 42nd St.,
Underwriter—None.

Leasing
Nov.

(1)

exchange for the 6% debentures,
March, 1961, of its subsidiary, Mentos Investments,

assets

Dec. 2, 1960 to acquire

Inc. (1/16-20)
(letter'of notification) 150,000 shares of
common stock
(par one cent). Price—$2 per share. Busi¬
ness—The manufacture, research, sale and distribution
of communications equipment and related products. Pro¬
ceeds—For payment of bank loans; new
equipment; ad¬
vertising and promotion; engineering research and for
working capital. Office—470 Park Ave., S., New York,

(1/23-27)

common

sbrk, N. Y.

Lee

distributorships, expansion, and the bal¬
ance for working capital. Office—404 No. Frederick Ave.,
thersburg, Md. Underwriter — Hodgdon & Co., Inc.,
a^hington, D., C. Offering—Expected in January.
Inc.

limited partnership formed

Nov.

establish

Jouet,

22,

Mich., and Dearborn,

offered for subscription by
holders of its common stock. Price—The price and the
sis of the rights offering will be supplied by amendm

filed

1960,

$142,860 of debentures
stock

certain

Underwriter—

Inc.

New

share of class A

one

common,

Israel.

17,

debentures and 32,300 shares of stock
subscription by stockholders and (3)

due

Jonker Business Machines, Inc.
Sept. 30, 1960 filed 50,000 common stock units, each unit
B

Tel-Aviv,

Associates,

stock;

for

1960 filed $1,027,000 of limited partnership
interests. Price—$5,000 per unit. Business—The
company

class

Blvd.,

Development

debentures, due Sept. 1, 1970, and 36 675
shares of capital stock (par
$1) to be offered in units of
$750 of debentures and 25 shares of

Dec.

if J-F Machine, Diesel & Electronics, Inc. (1/27)"
Dec, 9, 1960 (letter of notification)
100,000 shares of '
common stock (par 10 cents).
Price—$3 per share. Pro¬
ceeds—For
reducing present obligations and working
capital. Address—Route 23, King of Prussia, Pa. Under¬
writer—Vestal Securities Corp., New York, N. Y.

Rothschild

subordinated

consolidation

None.

City. Underwriter—None.

to consist of

if Leader-Durst Safede Co.

payable in cash or State of Israel bonds. Business—The
company
is a closed-end investment company which
makes funds available for the economic development of
Israel. Proceeds—To invest in establishing pr existing
businesses.

ating in the oil business as a joint venture. Proceeds—
For exploration and development of oil lands.
Office—

Development Corp.

21, 1960 filed $3,000,000 of 5Yz% convertible sinking

Israeli

organized in October 1959

was

Investment

Inc.

Nov.

of individual and corporate licensees who had been
oper¬

St., New York City,

Israel
Nov.

Underwriter—Capital

City.

Mensh

27,

Office—50 Broad Street,

in U. S. Government securities.
New

Oct.

bank loans

and

for

additions

Office—739 Marquette Ave., Minneapolis
derwriter—Kalman & Co., Inc., St.

the property.
2, Minn. Un¬

Paul, Minn.

Mobile

Credit Corp.

Sept. 14, 1960 filed 25,874 shares of common stock and
1,000 shares of $100 par 6% cumulative convertible pre¬
ferred stock. The stock will be offered for

by
of

shareholders
new common

new

of record

the

basis

subscription

two shares
for each three such shares held and one
on

preferred for each 38.81

held, the record date in each

common

being Sept. 1, 1960.
$10 per share; for preferred, $100
per share. Business—The purchase of conditional sales
contracts from dealers in property so sold, such as mobile
homes, trailers, boats, and motorcycles. Proceeds—For
working capital. Office—100 E. Michigan Ave., Jackson,
case

Prices—For common,

Mich. Underwriter—None.
Model Finance

Service, Inc.

May 26 filed 100,000 shares of second cumulative pre¬
ferred stock—65c convertible series, $5 par—and $1,000,000 of 6%% junior subordinated debentures, due 1975.
Price—To be supplied by amendment. Proceeds—To be
added to the

company's general working funds. Office—
Building, Jackson, Mich. Underwriter—Paul
& Co., Chicago, 111. Offering—Expected in
early January.

202 Dwight
C. Kimball

Mohawk Insurance Co.

Aug. 8, 1960, filed 75,000 shares of class A common s*ock.
Price—$12 per share. Proceeds—For general funds. Of¬
fice—198 Broadway, New York City.

Underwriter—H. F.

Continued

page

;

The Commercial and Financial Chronicle

(2696)

Continued from page 31

life

insurance business.

—At

Dowd

Co.,

Inc., 39 Broadway, New York
Offering—Expected in mid-January.
Monarch Electronics International,

6, N. Y.

Oct. 31, 1960 filed 200,000 shares of common stock.
—To be supplied by amendment.
Business—The

Price
com¬

pany, organized in 1958 under the name. Arrow Elec¬
tronics International, Inc., imports and sells electronic
and high fidelity parts and equipment.
Proceeds—To
retire bank loans and for working

Ehli, Demos, Bailey
North

Inc.

Office—7035
Laurel Canyon Boulevard, North Hollywood, Calif. Un¬
derwriter—Pacific Coast Securities Co., 240 Montgomery
capital.

Proceeds—For

Office—Helena,

par.

expansion. Price

& co.,

common

corporate

for each 100 shares sold.

basis

Power Co.

Pioneer
Oct.

(1/24)

1960,

filed

Proceeds

^ Monarch

bank loans and for construction. Office—215

Dec.

St., Fergus Falls, Minn. Underwriter—To\>e deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co.; Glore, Forgan & Co.;
White, Weld & Co. Bids—To be received on Jan. 24 at

—

rate purposes. Office—98
Underwriter—None.

Broad Street, Bloomfield, N.J.

Dec.

in early January.

South

Proceeds—For

and

for

general

inventories

corporate

Dec. 21, 1960, filed $25,000,000 of debentures due Feb. 1,
1981 and $25,000,000 of subordinated debentures due Feb.

•

Gas

new

Albany

—

Corp.,

Ward & Co., parent company. Proceeds—To be
general funds. Office—619 West Chicago Ave.,

added to
Chicago

Pacific

Transmission

Co.

the basis of

each

retire

stock, to

common

held.

the

Price—$1

current

liabilities, for
expenditures, and for working capital. Office—
Ave., Los Angeles, Calif. Underwriter
—

•

Fibers, Inc.

(letter of notification) 150,000 shares of common
(par 20 cents). Price—$2 per share. Proceeds—For
general corporate purposes. Office—Whitehead
Avenue,
South River, N. J. Underwriter—M. R. Zeller
Co., New
York City. Offering—Sometime in
January.
stock

Plated Wires &
Nov.

Electronics, inc.
(letter of notification) 75,000
(par 10 cents).
Price — $4

1960

16,

stock

common

Business—Manufacturers

shares of
share.
including

per

assorted

wires,
special wires for high temperature controls. Proceeds—
general corporate purposes. Office—63 Main Street,

stores

For

Geddes,
Albany,

Ansonia, Conn. Underwriter—J.
York, .N Y.

Coburn

Associates,

New

Pneumodynamscs Corp.
Nov. 22, 1960 filed 175,000 shares of common stock
(par
$1). Price—To be supplied by amendment. Business—
The company is primarily a government defense con¬
tractor, supplying products and services requiring ad¬
vanced technology. Proceeds — To
repay indebtedness

(1/11)

12, 1960 filed $13,260,000 of convertible debentures
due Feb. 1, 1981 to be offered for subscription by stock¬
holders

share. Proceeds

outstanding

for

June 14

Dec.

Finances

shaie

(managing).

1, 1981. Price—To be supplied by amendment. Business—
deferred
payment accounts of Montgomery

five

Office

purposes.

Underwriter—First

York.

New York

for

new

Plasties &

operation of a chaflin of 46 retail self-service
grocery supermarkets in central
New York

and

State.

one

—None.

Cas¬

food

Corp.
217,902 shares

2235 S. Carmelina

a.m.

ness—The

Electronics

I960 filed

capital

first mortgage bonds,
short-term

For repayment of

ic P. & C. Food Markets, Inc.
Lec. 23, 1960 filed 40,000 shares of common stock of
which 32,000 will be offered for sale to public and 8,000
to employees. Price—$12.50 per share (to public). Busi¬

New

Montgomery Ward Credit Corp.

—

cade

-fr Monroe Mortgage & Investment Corp.
Dec. 16, 1960 (letter of notification) 150,000 shares of
common stock. Price—$2 per fehare. Business—The com¬
pany is engaged in first mortgage financing of residential
and business properties in the Florida Keys. Proceeds—
To expand company's business. Office—700 Duval Street,
Key West, Fla. Underwriter—None. Offering—Expected

$7,000,000

26,

per

1991.

Mutual Investment Fund
(letter of notification) 30,000 shares of
common stock.
Price
$10 per share. Business — Real
estate investment trust.
Prcceeds—For general corpo¬

Co., Inc., Philadelphia, Pa. Offering—Expected
January.

be offered to holders of the

15,

1960

an aquari¬
or buildings. Office—2635 Fidelity-Philadel¬
Trust Building, Philadelphia, Pa.
Underwriter—

Oil & Gas Bldg., Wichita Falls, Texas. Un¬
derwriter—None, but 102,500 of the shares are reserved
for commissions to selling brokers at the rate of 15 shares

Otter Tail

per

Stroud &

and

Office—620

•

$100 debenture
unit. Businessaoout Philadelphia.
one

building

phia

purposes

series of

21,

units, each consisting of
Price—$150

of an aquarium in or
Proceeds—To acquire ground and to construct

stock. Price

exploration

gas

For general

—

Thursday,.December 29, 1960

10 shares of stock.

Normandy Oil & Gas, Inc.
Aug. 31, 1960 filed 750,000 shares of
—$1 per share. Business—Oil and
production. Proceeds

and

Operation

Billings, Mont.

Street, San Francisco, Calif. Offering—Expected in midJanuary.

offered
-

Underwriter—Wilson,
Kook Bidg., 3203 3rd Ave.,

Mont.

$100 principal amount of deben-i

tures for each 16% common shares held of record Jan. 11.

7, 111. Underwriter—Lehman Brothers, New York (man¬
aging). Offering—Expected about mid-January.

Price—At par

($100) per unit.
Proceeds—For pipeline
expansion. Office—245 Market St., San Francisco, Calif.

and the balance for

Mortgage Guaranty Insurance Corp. (1/16-20)
17, 1960 filed 155,000 shares of common stock (pa/
$1). Price—To be supplied by amendment. BusinessInsuring lenders against loss on residential first mort¬
gage
loans, principally
on
single
family
non-farm
homes. Proceeds—For "capital and surplus.
Office—606
West Wisconsin Avenue, Milwaukee, Wis. Underwriter
—Bache & Co., New York City (managing). Note—This
stock is not qualified for sale in New York State.

Underwriter—None.

St., Cleveland, Ohio. Underwriters—Hemphill, Noyes &
Co. and Estabrook & Co.
Offering—Expected in mid-

Oct.

National Aeronautical

(1/4)
Nov. 8, 1960 filed 60,000 shares of $1 par common stock.
Price
To be supplied by amendment. Proceeds — For
general corporate purposes. Office—Ft. Washington, Pa.
Underwriters—White, Weld & Co., New York City, Yarnail, Biddle & Co. and Stroud &,Co., Inc., both of Phila¬
delphia (jointly).
Corp.

—

National

Airlines, Inc.
Sept. 21, 1960 filed $10,288,000 of convertible subordi¬
nated debentures, due 1975, to be offered for subscrip¬
tion by holders of the outstanding common stock on the
basis of $100 of debentures for each 18 common shares
held.

Price—To be supplied by

amendment. Business—
--Domestic and international transport of persons, prop¬
erty, and mail. Fr< ceeds—To make payments on planes
and reduce short-term indebtedness, with the balance
for

corporate purposes. Office — Miami Inter¬
Airport, Miami, Fla.
Underwriter — Lehman
Brothers, New ; York City (managing).
Offering—Ex¬
pected in late January.
general

national

National Equipment Rental, Ltd.
Dec. 20, 1960 filed 136,000 shares of common stock to be
offered for subscription by common stockholders.
Price

•

Developers Limited

Sept.

January.

(1/3)

1960, filed 100,000 shares of common stock
(par 1 shilling)'. Price — $3 per share. Business — The
company intends to deal in land in the Bahamas.
Pro¬

Pocket

•

Palomar

Dec. 15,

Barnes

Co.,

Price

1975.

—

100%

principal

Business—The obtaining, arranging and servic¬
ing of real estate loans. Office—5th & University Aves.,
San

•

Diego, Calif. Proceeds — To retire bank loans and
for working capital. Underwriter — J. A. Hogle & Co.,
Salt Lake City (managing). Offering—Expected in late
January. v
/....v. v.v/
'.-V/'/'•
it Pantex Manufacturing Corp.
Dec.

27,

which

filed

1960

307,222

513,299 shares of capital stock, of
shares are to be offered for the account

of the

issuing company and 206,077 shares, representing
outstanding stock, are to be offered for the account
of the present holders thereof. The stock
being offered
for the company

rights offering;

one new

offered for each

supplied by amendment. Proceeds—For the purchase
200,000 shares of Tel-A-Sign, Inc. for $450,000, said

three capital shares

distributed

dividend

held. Price—To

Navajo Freight Lines, Inc.
\
May 9, 1960, filed (with the ICC) 250,000 shares of com¬
mon
stock, of which 189,000 shares, being outstanding
stock,

will be offered for the account of the present
holders thereof, and 61,000 shares will be offered for
the account of the issuing company. Price—To
be sup¬
plied by amendment. Office—1205 So. Plate River

held.

ing

Drive,
23, Colo. Underwriters—Hayden, Stone & Co',
Lowell, Murphy & Co. (jointly). Offering—Indefin¬
itely postponed.

Nov.

16,

stock

Proceeds—For

capital stock (no par) to be offered in units of 4 shares
of class A and 1 share of class B
for subscription
by
holders of class A and class B stock.
Price
$101 per
unit. Proceeds
To repay a bank
loan, loans to sub¬
sidiaries and for working capital. Office—39
South Ave.
New Canaan, Conn. Underwriter
Glidden, Morris &
Co., 165 Broadway, New York, N. Y.
—

—

Offering—Immi¬

nent.

New

Moon

Homes, Inc.

Nov. 28, 1960 filed
131,600 shares of
$1), of which 66,668 shares are to

common

stock

(par
by the

be offered
and 64,932 shares for the account of
selling
stockholders. Price
$9 per share. Business—The

company,

manu¬

facture and sale of mobile homes.
Proceeds—For work¬
ing capital and new product

development. Office—7808
Carpenter Freeway, Dallas, Texas.
Underwriter—Baker
Simonds & Co., Detroit, Mich,
(managing).
New Western

,^c^'

Underwriting Corp.

$2,000,000 of 15-year 6% subordinated
convertible debentures. Business —The company which
was organized in
August,

subsidiaries,

1959, is developing, through
dealer-recourse finance business and a

Price—60 cents

per

Co.

Investors

Puritron

tion and sale of collapsible metal tubes and aerosol con¬
tainers. Proceeds—To increase automation of production

air purifiers and

range

retire

Co., New York City

Offering—Postponed.
R.

hoods.

Pro¬

balance

Conn.

for

Un¬

(managing).

Corp.

Sept. 27, 1960 filed 100,000 shares of
$3.50 per share. Proceeds—For

common

stock. Price

working capital

($217,-

250) and production machinery and
equipment ($50,000).
Office—Little Falls, N. J.
Underwriter—Robert Edelstein

materials; for reduction of outstanding
indebtedness; for working capital and for general cor¬
porate purposes. Office—81 Water St., Ossining, N. Y.
Underwriter—S. B. Cantor & Co., and Farrell Securities
Co., New York City. Offering — Expected sometime in
Inc.

—

derwriter— Bache

raw

Philadelphia Aquarium,

indebtedness, with the
capital expenditures.
Office—New Haven,

—

Co., Inc., New York City.
Offering—Expected
January.
:•*'
!

time in

Radar Measurements

Sept. 28, 1960

Corp.'(2/15)

(letter of notification)

some¬

85,700

^ommon stock (par $1). PHce—$3.50

Oct, 14,1960 filed $1,700,000 of 6% debentures due 1975
and 170,000 shares of capital stock (par 50 cents) to be

filed 250,000 shares of common
stock, of
200,000 shares are to be offered for the account

sells electronic

ceeds

ment. Proceeds
For the purchase of electronic test
equipment and machinery; for advertising and sales pro¬
motion; for research and development; for the acquisi¬

Corp.

1960

the

and

Co.

issuing company and 50,000 shares, representing
outstanding stock, arei,to be offered for the account of
Joseph Stein, President, the present holder thereof.
Price—To be supplied by amendment.
Business—Makes

Perry Electronic Components, Inc.
Nov. 30, 1960 (letter of notification) 75,000 shares of
common
stock (par five cents). Price — $4 per share.
Business—The production of electronic components used
by manufacturers of electronic instruments and equip¬

which

lines, for research and development, and the balance
for working capital.
Office—Bloomfield, N. J.
Under¬
writer—Winslow, Cohu & Stetson, Inc., New York City.

Corp., Uniondale, N^Y.
Risk Life Assurance

of the issuer. Note—This
statement was effective Dec. 23r

Aug.

corporate purposes. Office—336
Underwriter—Subur¬

—

(1/11)

January.

general

Ave., Uniondale, N. Y.

Preferred

Nov. 22, 1960 filed 150,000 shares of capital stock. Price
—To be supplied by amendment. Business—The
produc¬

tion of toasic

and

Aug. 18, 1960 filed 300,000 shares of common stock. Price
$5 per share. Proceeds
For general
corporate pur¬
poses. Office — 20 East Mountain
St., Fayetteville, Ark.
Underwriter—Preferred Investments. Inc.. a
subsidiary

share.

general

Tube

of
Price—=$5 per share. Busi¬
development of chemical products.

(par 10 cents).

Proceeds—For

•

1960

Uniondale

corporate purposes. Office—403
Ursula Street, P. O. Box 187, Aurora, Colo. Underwriter
—Copley & Co., Colorado Springs, Colo.
Peerless

8,000 shares of class
2,000 shares of class B

(par 20 cents).

18,

ban

Business-

building, insulat¬

Research & Development
Corp.
(letter of notification) 50,000 shares

ness—Research

New York, N. Y

430,000

class A stock

Hill, Darlington & Grimm, New York,

Mortgage Co.
1960 .(letter of notification)

common

New Canaan Co.

H^e.,

acoustical

Nov.

Peerless

and

•

Lexington

and

Porce-Cote

N. Y. Offering—Indefinite.

Denver

Nov. 7, 1960 (letter of notification)
tA capital stock (no par) and

485

—

Price—To be supplied by amendment.

ment.

stock. Price—To be

Office

stock to be

products. ...Proceeds—For plant con¬
struction; expansion of its distribuiton of Perma-Glaze
and working capital. Office—2501
Northwest 75th Street,
Miami, Fla. Underwriter—To be supplied by amend-

supplied by amendment.
Business—The company manufactures facial and toilet
tissues. Proceeds—For acquisition of
property, to acquire
machinery and equipment, and
repayment of certain
loans.

company,

Distribution, sale and installation

;

Paper Co., Inc.
14, 1960 filed $800,000 of 7% unsecured subordinated
notes due Oct. 1, 1965 and 96,000 shares of common stock
(par 10c) to be offered in 8,000 units, each unit consist¬
ing of $100 principal amount of 7% notes and 12 shares

Underwriter

by common stockholders at the
rate of one share for each three
shares of common stock

Patrician

common

Price—$3 per share. Business
formed last July, will act as theatrical

T ;;Popell (L. F.) Co.
Nov. 18, 1960 filed 99,996 shares of
common
offered for subscription

^shareholders,
with the balance for general corporate
purposes, includ¬
ing working capital. Office—Central Falls, R. I. Under¬
writer—None.

70,000

cent par common stock.

Lexington Avenue, New York City. Underwriters—M.H.
Meyerson & Co., Ltd., 15 William Street, New York
City
(managing); Karen Securities Corp., New-York City,
and Selected
Investors, Brooklyn, New York. -

share will

be
be

Co., New York (managing). Offering—Ex¬

issuer publishes

producers and will produce jazz festivals,
concerts, rec¬
ords and commercial films. The firm also
plans to enter
the development and
merchandising of new commercial
color sound process for industrial and commercial
ad¬
vertising, Proceeds—For working capital. Off ice—480

—Burnham &

pected in late January.

The

Polysomes, Inc. (1/3-6)
18, 1960 (letter of notification)

—The

Oct.

—

Nov.

amount.

supplied by amendment. Business—The rental
or
leasing of equipment to business organizations, in¬
cluding production, processing, and packaging machin¬
ery. Office—1 Plainfield Ave., Elmont, N. Y. Underwriter

—To

Business

and distributes
paperback books, distributes publications of other-pub¬
lishers, and sells phonograph records. Proceeds—To sell¬
ing stockholders. Office—630 Fifth Ave., New York City.
Underwriters—White, Weld & Co., Inc., and Goldman,
Sachs & Co., both of New York
(managing).
'/

Inc., New York City.

Mortgage Co.

due

(1/5)

supplied by amend¬

ment.

1960 filed $1,100,000 of subordinated convertible

debentures,

Books, Inc.

Nov. 17, .1960 filed 600,000
outstanding shares of common
stock (par 50 cents). Price—To be

ceeds—To buy land, and for related corporate purposes.
Office—6 Terrace, Centreville, Nassau, Bahamas. Under¬

writer—David

working capital. Office—3781 E. 77th

per, share. Business
—Manufacturers of electronic.
equipments/Proceeds—For
general corporate purposes,.,Office
—/190

Duffy Ave.,

Volume

192

Number

6016

The Commercial and Financial Chronicle

(2697)

Hicksville, N. Y. Underwriter—rBlaha & Co., Inc., 29-28
41st Avenue, Long Island
City 1, N. Y.

for

expansion.) Office—Northfield, Minn. Underwriter—

Self-Service, Inc.
15; 1960 filed 154,375 shares of common stock (10c
per share. Proceeds—$30,000 will be used
to pay an outstanding note,
$87,500 will be used for the

Nov.

•

par). Frice—$3

Sept. 28,1960 filed 100,000 outstanding shares of common
stock. Price—To be supplied by amendment.
Proceeds—
To selling stockholders. Office
1610 North Mill
St.,
Jackson, Miss. Underwriters—Equitable Securities Corp.

acquisition,, constructing, and equipping of an additional
plant, $22,500 will be used to cover the expenses of
offering the stock, and the balance will be used to reduce
indebtedness and purchase equipment.

Office—Mt. Ver¬

Real

Estate

Place,

Inc.

Oct.

14,

1960 filed

200,000 shares of beneficial interest.

Mutual

amendment.

Business—A

Price

To be supplied

—

wholesaler

and

Insurance

Co.

City

—

the

Pru¬

America,

the

selling

(managing).

underlying

stock¬

Offering—Expected

late

Reser's Fine Foods, Inc.
Nov..29, 1960 (letter of notification) 120,000 shares of
common stock
(par 33y3c). Price—$2.25 per share. Pro¬
ceeds—To purchase food
^processing equipment, expan¬
sion of- market and for
working capital. Office — Reser
.Bldg., Cornelius,. Oreg. Underwriter—William David &
Motti, New York, N. Y. Offering—Expected in mid-Jan¬
-

sells

protective

wholesale

con¬

supplied

tures and 50 shares of
unit. Proceeds

—

common

move

and

stock. Price

equip

—

new

$200

New

York
■

•

Castle

warehouse;

City.

Associates, Inc. (1/9)
filed 245,000 shares of $1 par common
stock, of which 195,000 shares will be offered for the
account
of
the ..issuing
company
and 50,000 shares,
representing outstanding stock, are to be offered for the
account of selling stockholders. Price—To be
supplied by
Nov.

16,

amendment.

Business

—

issuer

The

operates

wide

Reynolds & Reynolds Co. W
I," 1960 filed 130,000 outstanding shares of class A

;
*

,■
♦

capital.

Office

—

Industries

>•

tion

of
a

industrial

and

research

facilities.

dent. Office—222 West

Haas, former Board Chairman afftd PresiWashington Square. Philadelphia,

ceeds—To repay outstanding bank loans and to increase
inventories.
Office — 7701
East
Compton Boulevard,

Pa.

Paramount, Calif.

Haas Co.

(1/4)

Nov. ,17, 1960 filed 9,000 shares of
outstanding
stock (par $20),-.Price—To be

Proceeds—To selling
-

estate

of Otto

common

Underwriters—Drexel & Co., Philadelphia, Pa., and
Kidder, Peabody & Co., New York City (managing).
•

(G. T.)

Schjeldahl Co.

Nov. 28, 1960 filed 9,000 outstanding shares of common
stock and $765,000 of convertible subordinated deben¬

tures, due 1971. The debentures will be offered to holders
of the outstanding common stock on basis of $100
prin¬
cipal amount of debentures for each 100 common shares
held.

Price—To

The
-

research,

and

electronic

be supplied by amendment. Business—
development and production of plastics

instrumentation

working capital,* the
Plymouth Industrial Products, Inc., Sheboygan, Wis., and
.

'systems.'Proceeds—For
acquisition and development of

-•

Underwriter — H. Hentz & Co. and
Federman, Stonehill & Co., both of New York City
(managing).
Simplex Wire & Cable Co.

Sept. 28, 1960 filed 118,000 shares of outstanding capital
stock. Price—To, be supplied by amendment. Office—
Cambridge, Mass.. Underwriter—Paine, Webber, Jackson

of five-

purchase

inventory,

retire

bank

loan

and

for

Steel Crest

Proceeds—To

supplied by amendment.
stockholders, the executors of the

$125,000

Homes, Inc.
22, 1960 filed *180,000 shares of common stock;
$450,000 of 8% subordinated sinking fund debentures
($10 face amount) due Sept. 1, 1981; and 45,000 warrants
exercisable at $15 for the purchase of two shares and
one
debenture1 (for which 90,000 underlying common
shares and 45,000 underlying 8%. debentures were also
filed). The securities will be offered in units, each unit
to consist of four shares of stock, one $10 face amount,
debenture and one warrant. Price—$18 per unit. Pro¬
ceeds—For the financing of homes sold by the company,
and its subsidiary,
and for working capital. OfficeCenter Square, Pa. Underwriters—Marron, Sloss & Co.,
Inc., New York City and Harrison & Co., Philadelphia,
Pa. Offering—Expected in late January.

.Nov.

Shore-Calnevar, Inc.

Corp. (1/5)
(letter of notification)

1960

working capital. Office—3552 10th Court, Hialeah, Fla.
Underwriter—Blaha & Co., Inc., Long Island City, N. Y.

(1/30-2/3) r
Nov. 25, 1960 filed 200,000 common shares, of which
100,000 shares will be offered for public sale by the
company and 100,000, being outstanding shares, by pres¬
ent stockholders. Price—To be supplied by amendment.
Business—Designs and produces automobile hub caps,
washroom dispensers and other janitorial supplies. Pro¬

•? Ro'

—To

Inc.

bank

25,

6Y2% convertible subordinated debentures and 125,000 shares of common stock (par 10 cents) to be offered
in units, each unit to consist of $50 of debentures and 50
shares of common stock. Price—$100 per unit. Proceeds

4815

loan, for expansion and inventory, and,
: if or
working capital. Office —Wilmington, Del. Under> writer—Myron A.
Lomasney & Co., New York City,
repay

(par

year

in-

.—$6 per share. Business—The manufacture, assembly and
sale of aircraft and missile components and the construc-

con-

principal amount.
Proceeds —:,Ta be used as operating capital to fulfill
M. A. T: S. contract/and to acquire aircraft. Office—International Airport, Miami, Fla^ Underwriter—James H
Price & Co., Coral .Gables,
Fla., and New York City.
'

working

Corp.

(letter

stock

Statmaster

Nov.

> Nov. 29, 1960 filed 150,000 shares of common stock. Price

vertible debentures. Price—At 100% of

company makes and

Shinn

v
Riddle Airlines, vine. >' ''- ■'*:'/
Aug. 19, .1960 filed $2,250;G00 of 6% subordinated

supplement

1960

Proceeds—For

Underwriters—Dempsey-TegeCo., St. Louis, Mo., and Straus, Blosser & Mc¬
Dowell, Chicago, 111. (managing). Offering—Indefinite.
ler

•

sup¬

current short-term bank loans

repay

Boat

of nCification) 70,000 shares of
10 cents). Price—$4.25 per share.
working capital.
Office—809 Kennedy
Bldg., Tulsa, Okla. Underwriter — F. R. Burns & Co.,
Oklahoma City, Okla.
1

common

Cabot St., Detroit, Mich.

Dayton, Ohio.
Byllesby & Co., Chicago, and
Grant-Brownell & Cq., Dayton, Ohio (managing).
—

curred

.stock.., Price—To be • supplied by amendment.
Business—The manufacture and sale of business and accounting forms and systems: Proceeds—To selling stockholders.
Office
800 Germantown St.,

Underwriters

thereof. Price—To be

Starfire

Sept.

laminated

Proceeds—To

common

•

safety plate and sheet glass, primarily
to the automotive replacement
market, and sells its prod¬
ucts for use as original equipment to
bus, truck, tele¬
vision, and farm and road equipment manufacturers.

Dec.

the present holders

plied by amendment. Business—The
sells

—

12, 1960 filed 100,000 shares of common stock (par
of which 50,000 shares are to be offered for the

count of

ing capital and expansion. Office—515 W. 57th St., New
York City.
Underwriter—Shearson, Hammill & Co., New
York City (managing). "
~
:

1, 1985, with warrants to be offered in 35,000
consisting of six common shares, a $10 deben¬
ture, and two warrants. Price — $17.50 per unit. Pro¬
ceeds
For construction, mortgage funds, and work¬
ing capital. Office—Miami Beach, Fla. Underwriters—
Aetna Securities Corp. and D. Gleich Co., both of New
York City, and Roman & Johnson, of Ft. Lauderdale, Fla.
units

issuing company and 50,000 shares, repre¬
senting outstanding stock, are to be offered for the ac¬

The Forum of the Twelve Caesars. Proceeds—For work¬

due Nov.

stock

account of the

restaurants, coffee shops, and cafeterias, most¬
ly in New York City, including The Four Seasons and

Standard &

Shell Homes Corp.
1, 1960 filed 210,000 shares of common stock and
$350,000 of 9% subordinated sinking fund debentures,

Shatterproof Glass Corp.
Oct.

$1),

varietv of

■

•

Nov.

Marino, Calif.

1960

•

Underwriter—Pacific Coast Securities Co.. San
Francisco,
Calif. Offering—Expected in
mid-January.

Properties, Inc.
(letter of notification) 40,000 shares of class
(par $1). Price—$7.50 per share, Pro¬
ceeds—For working capital. Office—2540
Huntington Dr.,
San Marino, Calif. Underwriter — Blalack &
Co., San

Restaurant

—

Dec. 2, 1960
common

Normal

—

Shareholder

7988

Corp.
Sept. 30, 1960 filed >150,000 shares of capital stock. Price
—$2 per share. Business
The research, development,
manufacture, and sale of magnetic recording equipment.
Office
921 North Highland
Ave., Hollywood, Calif.

off certain bank indebtedness and for new lines.
Office—2826 Mt. Carmel Ave., N. Hills,
Glenside, Pa.

County

—

Stancil-Hoffman

pay

Air Base, New Castle
Underwriter—Amos Treat & Co., Inc., New

County, Del.

uary.

Underwriter—Woodcock, Moyer, Fricke & French, Inc.,

—

manage and operate retail food stores under
of "Speedee Mart." Proceeds—For
acquisitions,

equipment and store inventories. Office

Philadelphia, Pa. Offering—Expected in early January.

Office

name

Ave., La Mesa, Calif. Underwriter—J. A, Hogle & Co.,
Salt Lake City, Utah.
Offering—Expected in late Jan¬

per

and

ing others to
the

■

fabrics, and products used in insulation. Proceeds—For
working capital ($235,358),. with the balance for ma¬
chinery, equipment, and general corporate purposes

.
•

Nov. 21, 1960 filed 90,000 shares of common stock. Price
—To be supplied by amendment. Business—Enfranchis-

—

Ave., San Diego, Calif. Underwriter—None.

Speedee Mart, Inc.

distribution

stock.

working capital. Office—2720 Wett
Mockingbird Lane, Dallas. Underwriter — Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.

Self Service Drug Corp.
Sept. 26, 1960 (letter of notification) $150,000 of 10-year
6% convertible debentures and 75,000 shares of common
stock (no par) to be offered in units of $100 of deben¬

(1/3-6)

coatings for packaging

Price—To

The

common

per

and the balance for

like amount of

St., New York, N. Y. Underwriters

ruary.

Aug. 29, 1960 filed 200,000 shares of common- stock (par
10 cents).
Price—$2.50 per share. Business—The firm
and

—

stock. Price

Southwestern Oil Producers, Inc.
March 23 filed 700,000 shares of common stock, Price—
$2 per share. Proceeds—For the drilling of three wellt

Gregory &
Sons, New York City and Straus,. Blosser & McDowell,
Chicago (managing). Offering—Expected in early Feb¬

Business

common

amendment, Business—The sale and

natural

Capital Corp.
1960 filed 1,000,000 shares of

1326 Garnet

January.

cumulative
a

share. Business—A closed-end investment
company. Proceeds—For investment purposes. Office—

grocery products and the processing and sale of frozen
fruits, vegetables and prepared foods. Office—40 West
2z5th

shares.

common

amendment.

(managing).

Sept. 30,
Price—$3

Proceeds—$200,000 will be used

★ Seeman Brothers, Inc.
Dec. 21, 1960 filed 98,150 shares of 5%
vertible preferred stock (par $20) and

Road, Danbury, Conn.
Underwriter—Emanuel, Deetjen & Co., New York City

■

Proceeds—For general busi¬

borrowings, $56,000 for a partial
payment of a note due 1975, and the balance for working
capital. Office—122 East Washington St., Oklahoma City,

gen¬

Great Pasture

Chemical, Inc.

The design,
advertising signs, displays and

Southwestern

distributor

100 common

—

gas for domestic,
commercial,
agricultural, i and industrial uses in parts of California,
Nevada, and Arizona. Proceeds—To reduce indebtedness,
with the balance for working
capital. Office—2011 Las
Vegas Blvd. South, Las Vegas, Nev. Underwriter—East¬
man
Dillon, Union Securities & Co., New York City
(managing).
'

food and allied products.
to reduce short-term

Madison Ave., New

Proceeds

Office—15

*■;

distribution

Okla. Underwriter—Francis I. du Pont &
Co., New York

dential

Resisto

Business

City.

the present holders thereof.

150,000 shares of outstanding com¬
Price—To be supplied by amendment. Busi¬
The manufacture and distribution of
magnetic

uary.

purposes, including the purchase of
tools, dies and
equipment; for research, sales and inventory and for ad¬
ditional working capital. Office—375 East 163rd
St., New
York, N. Y. Underwriter—William David & Motti, Inc.,
New York City.
Offering—Expected in mid-February.

Business—The

1960 filed

sale

—To be supplied by

amendment.

(1/9)

holder.

makes

supplied

$300 per unit.

ness

1960 filed 70,000 shares of common stock, of
62,840 shares are to be offered for the account
the issuing company and 7,160
shares, representing
outstanding stock, will be offered for the account of

The

tape, film and recording discs.

Gems for each five

stock.
—

of $100 of debentures and

—

miscellaneous plastic items.

which

Reeves Soundcraft
Corp.

ness

share of Screen

Price

manufacture and

Scrivner-Stevens Co.

York, N. Y. Underwriter—None.

23,

one

in units

shares.

Fifth

Dec.

■■

business purposes.. Office—444

mon

offered
stock ($1 par)

common

New York

Distributors, Inc., Sac

Housing Act. Proceeds—For

•

■ •

(1/16)

making of payments to Columbia Pic¬
required under the operating agreement. Office
Avenue, New York, N. Y. Underwriting—
Hemphill, Noyes & Co., and Hallgarten & Co., both of

company was organized in September,
1960 to invest in real
property mortgages insured under
Title II of the National

Nov.

Products Corp.
1960, filed 750 units, consisting in the aggregate
$225,000 principal amount of 7% debentures due
February, 1968, and 75,000 shares of common stock to be
of

purposes and the

Realty Collateral Corp.
12, 1960 .filed $20,000,000 of collateral trust notes,
series A, due 1981. Price—To be
supplied by amendment.

eral

.■

Solite

Dec. 8,

tures

—

Co.,

Southwest Gas Corp. (1/4)
Nov. 7, 1960 filed 150,000 shares of

—711

Dec.

Business

Gems, Inc.

basis of

Price—To

—

■

McLarty

production and distribution of television feature
films,
shorts and commercials. Proceeds—For
general business

per share. Business—An open-end real estate
investment trust specializing in investment real estate.
Office
606 Bank of America
Bldg., San Diego, Calif

Diego, Calif.

Kroeze,

Pictures, and for subscription on the
same basis by
participating employees under the Colum-,
bia
Pictures Corp. Employees' Stock Purchase
Plan.

Fund

Estate

the

Price—$5

Distributor—Real

and

.shares of Columbia

together with 50 shares of class B common stock. Price
•—$100 per share for each class. Proceeds—To pay costs
and expenses incidental to the
company's organization
and operation/Office—1422 Sixth
Ave., San Diego, Calif.
Underwriter—None.
Mutual

City,

by common stockholders of
Columbia Pictures Corp., holder of all
outstanding shares

20, 1960, filed 50,000 shares of class A common
stock, of which 12,903 shares will be exchanged for real
property and the balance of 37,097 shares sold publicly,,

Estate

York

Dec. 8,1960 filed 300,000 shares of
to be offered for
subscription

Dec.

Real

New

Screen

Market

(1/11)

Jackson, Miss.

•

Pictures, Inc.

—

N. Y. Underwriter—The James Co., 369 Lexington
Avenue, New York 17, N. Y. Offering—Expected in midJanuary.
'
.

Scrtool

non,

charter

carrier until
July 1, 1960 when it diversified by
acquiring Illinois Shade Cloth Corp. Proceeds—Fof
gen¬
eral corporate purposes. Office—3000
No. Clybourn Ave.,
Burbank, Calif. Underwriters —
Auchincloss, Parker &
Redpath and Allen & Co., both of New York
City (man¬
aging). Offering—Indefinitely postponed. /

Craig-Hallum, Inc., Minneapolis, Minn, (managing). Of¬
fering—Expected ip January.

ftajac

Straus-Duparquet Inc.
Sept. 28, 1960 filed $1,000,000 of 7% convertible^ subordi¬
nated debentures, due 1975. Price—At par. Office—New
York City. Underwriter—None; the offering will be made
through officials and employees of the company. Offer¬
ing—Expected sometime in January.

Curtis,

New

York

City

(managing).

Offering—In¬

definite.

Super Market Distributors, Inc.
1, 1960 filed 200,000 outstanding shares of common
stock. Price—$5 per share. Business—The wholesale dis¬
Dec.

tribution
Slick

Airways, Inc.

Oct. 27,1960 filed

600,000 shares* of common stock (no
par). Price—To be supplied by amendment/Business—
The

company was

engaged exclusively

of non-food

Proceeds—To

contract and

ony

consumer

items to

selling stockholders.

supermarkets.
Office—39 Old Col¬

Ave., Boston, Mass. Underwriter—Clayton Securities
Continued

page

The Commercial and Financial Chronicle

(2698)

Continued from page 33

Thursday, December 29, 1960

Corp., Boston,

Mass.

• Two-State Oil & Gas Co., Inc.

Offering—Expected

uary.

"Taro-Vit"

Nov.

Industries

Ltd.

25,

$0.60

Chemical

1960 filed 2,500,000 ordinary shares. Price—
share payable in cash or State of Israel Bonds.
Business
The company produces, in Israel, a poultry
Proceeds

Tip Top Products Co.

1960 filed 60,000 shares of class A common stock
supplied by amendment. Address—Omaha,
Cliff Rahel & Co., Omaha, Neb.
and First Trust Co. of Lincoln, Lincoln, Neb. OfferingExpected in mid-January.
;
- k
/

expansion; $170,000 for
equipment and working capital; and $130,000 for repay¬
ment of a loan. Office ^ p. O. Box 4859, Haifa, Israel.
Underwriter—None.
*
i

•

■

Electronics, Inc.

!
notification) 99,833 shares of
common stock (par 10 cents). Price—-$3 per share. Pro¬
ceeds—. For general corporate purposes. Office — 36-11
33rd Street,
Long Island City, N. Y. UnderwritersEd ward Lewis Co., Inc.;. New, York, N. Y.
^
Sept.

1960

(letter

Dec.

Business

Ave., Silver Spring, Md.
Inc., Washington, D. C.

Corp.
1960 filed an unspecified number of shares of
(par value $1), to be offered to common
stockholders for subscription. Price—To be supplied by
amendment. Proceeds—For initial production expenses
stock

Telescriber

compatible with an A. T. & T. analog
subset; for initial production expenses of facsimile equip¬
ment to be made by its subsidiary Hogan Faximile Corp.,
and the balance for the reduction of indebtedness. Office
—8700 Beilanca Avenue, Los

Angeles, Calif. Underwrit¬
Co., and Richard J. Buck & Co., both of
City, and Chace, Whiteside & Winslow, Inc.,
Boston, Mass. Offering—Expected some time in January.
ers—Baird

Teie-Graphic Electronics Corp.
Dec. 16, 1960 (letter of notification)
stock

common

•

100,000 shares

(par $1). Price—$3 per share. Business—

Patent holding and development of its

patent structure
preparation to develop for manufacture its patent¬
able products. Proceeds—For general corporate purposes.
—

514

Hempstead Ave., West Hempstead, N. Y.

Underwriter—None.
.

•

Trans-Air System,

New York.
r

Teiescript C.S.P., Inc.
23, 1960 (letter of notification)

Dec.

•

shares of
prompting
machine for television and an electronic tape editor.
Proceeds—To expand plant and sales force, enter closed
circuit television, repay a $20,000 loan, and for work¬
ing capital. Office—155 West 72nd St, New York City.
Underwriter
Robert A. Martin Associates, Inc., 680
Fifth Avenue, New York City.
*
stock.

Business—The

60,000

firm.makes

—

Texas

Eastern Transmission

Corp.
$30,000,000 of first mortgage pipe line
bonds, due 1981, and 150,000 shares of preferred stock.
Price—To be supplied by amendment. Proceeds—To re¬
tire revolving credit notes and for construction. Office—

Dec. 2, I960 filed

Memorial

Professional

Bldg., Houston, Texas.
Under¬
writer—Dillon. Read & Co. Inc. (managing). OfferingExpected in mid-January.
Texas Power &

Dec.

Light Co. (1/24)
15, 1960 filed $12,000,000 of first mortgage bonds,

series due 1991. Proceeds—For construction and the

payment

re¬

$4,500,000 of short-term loans from Texas

Utilities Co., the parent company. Office—Fidelity Union
Life Building, Dallas, Texas. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Co.

Stuart

Union

Securities

Inc.; First Boston Corp.; Eastman
&

Co.

and

Salomon

Bros.

Dillon,
Hutzler

(jointly); Lehman Brothers; White Weld & Co.; Kuhn,
Co., Blyth & Co. (handling the books), Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Smith (jointly). Bids—Expected on Jan. 24 at 11:30 a.m.
(EST); Information Meeting—Scheduled for Jan. 19 at

Loeb &

a.m.

Therm-Air Mfg. Co., Inc.
Sept. 13, I960 filed 125,000 shares of common stock (par
10 cents). Price—$4 per share. Business—The
company
makes and sells temperature and
humidity control equip¬
ment for military and commercial use. Proceeds—To
pay
loans, for research and development, and for working

capital.

Office—1000 North Division St., Peekskill, N. Y.

Underwriter—G.

Everett

Parks

Co., Inc., New York

City.

• Thermo-Dynamics,

Inc.

and

30,089 shares, representing out¬
standing stock, are to be offered by two officers of the
company.
Price—$3.50 per share. Business—Formerly
known as Agricultural Equipment
Corp., this company

j company

are

new

distributes German made Stihl chain
Kart"
and

saws

and Stihl "Go-

gasoline engines; U. S. made tractor attachments

power

saws;

makes cryogenic gas reclamation

and

transferral

systems, L-P gas thermo-shock weed control
devices, portable furnaces, etc. Proceeds—For the repay¬
ment of debts, for expansion and for
working capital.
Office—1368 W. Oxford

Avenue, Englewood, Colo.

Un¬

derwriter—Lowell, Murphy & Co., Inc., Denver, Colo.
_*Thursby (Reed A.) & Co.
Dec.

19,

1960

(letter of notification)

100,000

stock (par 10 cents).
Price—$3 per share.
ceeds—For building sites, installation and for
common

Pro¬

working
capital. Office—4030 Overlook Road, N. E., St. Peters¬
burg, Fla.
Underwriter—Dunne & Co. and R. James
Foster

Co., Inc., New York, N. Y.

Varifab

200,000

filed

1960,

22,

Fund

Price—Net asset value plus

organized

company

stock.

common

diversified management investment
under California law in October.

1960. Proceeds—For investment. Office—1100 East Plumb

Lane,
ment

Reno, Nev. Underwriter—Transwestern Manage¬
Corp., a subsidiary of Transwestern Life Insurance

Co. of Nevada.

„

Underwater
Nov.

Storage,

,7'7

;

Inc.

(letter of notification) 100,000 shares of
(par $1). Price—$3 per share. Proceeds—
"For working capital.
Office—1028 Connecticut Ave.,
N. W., Washington, D. C. Underwriter—Searight, Ahalt
& O'Connor, Inc., New York, N. Y. Offering—Expected
8,

1960

early January.

Oct.

Marine

Structures

1960

(letter

Underwriter—To be supplied by amendment?

United Automotive
Nov.

Industries, Inc.

(1/10)

(letter of notification) 100,000 shares of
(par $1). Price—$3 per share. Proceeds—
To retire outstanding indebtedness and for working cap¬
ital. Office—2136 S. Garfield Ave., Los Angeles, Calif.
Underwriter
Pacific Coast Securities Co., San Fran¬
cisco, Calif.

28, 1960

stock

common

—

United Financial

Corp. of California

Aug.

29,

stock

retire

City. Offering—Imminent.

Washington, D. C.
Western
June 29,

•

-./

Oct. 20, 1960 filed 1,000,000 shares of common stock (par
Bermuda pound). Price—$12.50 per share. Business

one

—This is

new

investment.
Bermuda.

open-end mutual fund.

Office—Bank

Proceeds—Foi

of Bermuda

Bldg.r Hamilton,
Underwriters—Kidder, Peabody & Co., Bache

& Co., and Francis I. du Pont & Co., all of New York
City (managing). Offering—Expected in January.
•

United

Pacific

Aluminum

Corp.

Aug. 24, 1960 filed $7,750,000 of convertible subordinated

debentures, due 1975. Price—To be supplied by amend¬
Proceeds—Together with other funds, the proceeds
will be used to pay for the erection of a primary alu¬
minum reduction facility. Office — Los Angeles, Calif.
Underwriter—Straus, Blosser & McDowell, Chicago, 111.
(managing). Offering—Expected in January.
United Telecontrol Electronics, Inc.

Dec. 8, 1960

1960, filed 700,000 shares of

per

share.

Office —1201

Continental Bank Bldg., Salt Lake
Business—Factoring.
Underwriter—Elmer
K. Aagaard, Newhouse Bldg., Salt Lake City, Utah.
•

City, Utah.
•

Westminster

Fund, Inc. (1/4)
14, 1960 filed 4,000,000 shares of capital stock. Busi¬
a new mutual fund, and its intention is to
offer holders of at least $25,000 worth of acceptable
securities the opportunity of exchanging
each $12.50
worth of such securities for one share in the Fund, which
Oct.

ness—This is

will receive a maximum commission of 4%. OfficeWestminster at Parker, Elizabeth, N. J. Investment Ad¬
visor—Investors Management Co. Dealer - Manager—

Kidder, Peabody & Co., New York City.

.''Westmore, Inc.
Dec. 1, 1960
(letter
stock

;

•

'7':-7;.*•<.'7 v

of notification) 150,000 •• shares of
(par 40 cents). Price—$2 per share. Busi¬

ness—Inventing, developing, producing and 'marketing
electronic test equipment. Proceeds—For production,
and development; for repayment of loans arid

research
Tor

working capital. Office—Fanwood, N. J;. Underwriter

—Vincent, James & Co., Inc., 37 Wall St., New York,

stock

United International Fund Ltd.

common stock. Price
Proceeds—To be used principallyfor
purchase of additional accounts receivable, and also
may be used to liquidate current and long-term liabil¬

—$1.50

derwriter

Offering—Expected in mid-January.

the

loan associations. Also operate an insurance agency for
fire, casualty, and other related real estate coverage.
Office;—439 South La Brea Ave., Inglewood, Calif. Un¬

Brothers, New York (managing).

Factors, Inc.

N. Y.

Lehman

Lane,

Laboratories, Co., Inc.
:
Oct. 26, 1960 - (letter of notifica+ion) ,>90,000 shares of
class A common stock (par $1). 1 rice—$2.75 per share..
Proceeds—To provide funds for further expansion of the
company's operations. Office—5455 Randolph Rd., Rockville, Md. Underwriter—First Investment Planning Co.,

—

Forest

Office—2321

Vim

550,000 outstanding shares by the present holders there¬

supplied by amendment. Proceeds—
For general corporate purposes and to the selling stock¬
holders. Business—Holding company for two savings and

(par 10 cents). Price—$2 per share. Pro¬

outstanding notes.

New York

common

150,000 shares of

Garland,; Tex. Underwriter—Plymouth Securities Corp';,

14, 1960 filed 600,000 shares of common stock, of
which 50,000 shares will be offered by the company, and
Price—To

Industries, Inc.
1960 (letter of notification)

ceeds—To pay in full the remainder of such subscription
to capital stock of\International Data Systems, Inc. and

Dec.

of.

150,000 shares of

Vector

ities.

Corp.

notification) 100,000 shares of
common stock
(par one cent). Price—$3 per share. Pro¬
ceeds—To purchase raw materials, maintenance of in¬
ventory, machinery and equipment, and for working
capital. Office—204 E. Washington St., Petaluma, Calif.
17,

(letter of notification)

stock

common

stock

Unifloat

Simr-

•

sales charge of 8%%. Busi¬

and

Co.

Offering—Imminent.

(par 10 cents). Price—$2 per share. Busi¬
of components, subassemblies,, as¬
semblies and special devices in the missile and com¬
puter fields. Proceeds—For general corporate purposes.
Address—High Falls, N. Y. Underwriter—Droulia & Co.,
New York, N. Y.
/<
7" 7' '
V

Office—51 Hudson Street, New
York, N. Y. Underwriter—Flomenhaft, Seidler & Co.,
Inc., New York, N. Y.
''7;
Mutual

Rubin

ness—Manufacturers

For expansion purposes.

Dec.

•

Inc.

1960

common

(1/16)

Inc.

& Co. both of New York City.

Nov. ,14,

;"-7"7' .7..

Wilier Color Te'evision System,
Jan: 29 (letter of notification) 80,890
•

(par

$1).

Price—$3

Inc.

(1/16)

shares of common
share:. Proceeds—For
Office—151 Odell Avenue,

per

•general corporate purposes.
>Yonkers, N. Y.
Underwriter—Equity Securities Co., 30
Broadway, New York City.
.

Wangs & Wheels Express, Inc.
1
Dec. 9, 1960 filed 85,000 shares of common stock. Price
—$3 per share. Business—Engaged in freight forward¬
ing

air

and- terminal

handling service at Chicagb.
'expansion, Working capital; the financ¬
ing of accounts receivable,'and general corporate pur¬
poses.
Office—Astoria Blvd., and 110th St., Flushing,
L. I., N. Y. Underwriters—Globus, Inc; and Ross, Lyon
Co., Inc., both of New York City.
Proceeds—For

ment.

Dec. 27, 1960 filed 31o,089 common shares of which
285,000 shares will be offered for the account of the
issuing

Underwriters—B.

Pa.

mons

(letter of notification) 90,000 shares of com¬

Trans western

7-"■■■■• .""7 \7'*

—

(par 10 cents). Price—$2.50 per share. Busi¬
ness—International air freight forwarding.
Proceeds—

common

•<>t

Underwriter—Hodgdon & Co.,

stock

mon

■

Co., Inc.
;
July 27, 1960 (letter of notification) 100,000 shares of
common stock
(par 10 cents). Price—$3 per share. Pro¬
ceeds
To pay accounts payable, reduce a bank loan,
advertising and for working capital. Office—Red Lion,

30, 1960 filed 150,000 shares of common stock. Price
per share. Business — The processing and sale of
photographic film, supplies and equipment. Proceeds—
For general business expenses. Office — 2240 Jerome
Avenue, New York City. Underwriter—Michael G. Kletz
& Co., New York City. Offering—Expected in mid-Jan.

Dec. 6, 1960

7''

Valdale

Inc.

Telephone & Electronics Corp. (1/6)
Aug. 18, 1960 (letter of notification) 52,980 shares of
common stock (par 25 cents).
Price—$5 per share. Pro¬
ceeds—For general corporate purposes. Business—Elec¬
tronic communications equipment and automatic, loudspeaking telephone. Office—7 East 42nd St., New York
17, N. Y. Underwriter—Equity Securities Co., New York,

common

Town Phofolab,

ness—An open-end,

•

ruary.

Nov.

and

Office

retire outstanding loans and for working capital. Office
—Plainview, L. L, N. Y, Underwriter—Lehman Broth¬
ers, New York (managing). Offering—Expected in Feb¬

—$4

New York

The

—

(2/1)

Beneficial Trust Certificates in
Investment Trust. Price—$2,500 each.
company will purchase an apartment

filed 209

1960,

project of not less than 242 units on 10 acre site in Prince
Georges County, Md. Proceeds—To purchase the abovementioned apartment project.
Office—2215 Washington

Tel Autograph

The Toledo Plaza

Nov. 18,
common

Corp.
16, 1960, filed 100,0Q0 shares of common stock
(par $1). Price—To be supplied by amendment. Business
—The design, production and sale of high vacuum sys¬
tems and related leak detector systems.
Proceeds—To

'Dec.

Toledo Plaza Investment Trust

Tech-Ohm

Vacuum-Electronics

Underwriters—J.

Neb.

St.", Hacskensack, N. J. Underwriter—Underhill
New York, N. Y.

Urban Development Corp.
Aug. 30, 1960 filed 300,000 shares of common stock (no
par). Price—$10 per share. Proceeds—For general cor¬
porate purposes, including debt reduction. Oifice—Mem¬
phis, Tenn. Underwriter — Union Securities Investment
Co., Memphis, Tenn.
' 1

Price—To be

$750,000 for

—

of notification)

(letter

1960

Oct. 4,

supplement, and pharmaceutical .and chemical prod¬

ucts.

12,

None.

—

food

Securities Corp., 19 Rector Street,

500,000 shares of
common stock (par 10 cents).
Price—25 cents per share.
Proceeds—To drill two wells and for working capital.
Address—P. O. Box 1241, Boise, Idaho.
Underwriter—

Jan¬

late

Hudson

Dec.

Wol-ard Aircraft Service Equipment, Inc. 1
Dec.

14, 1960 filed 135,000 shares of common stock.
Price—$4 per share. Business—The manufacture and sale
of

equipment used to service commercial and military
Proceeds—For a new plant and "equipment, for
moving expenses and the balance for working capital.
aircraft.

Office—2963

(par 10 cents). Price—$5 per share. Business
—Manufacturing components designed for use in con¬

Amos

nection

WonderBowl, Inc.
April 14 filed 3,401,351 shares of

mon

(letter of notification) 60,000 shares of

com¬

stock

with

equipment
general

telephone and telegraph communication
a prime contract basis.
Proceeds —For

including working capital.
Office—Monmouth County Airport, Wall Township, N. J.
Underwriter
Richard Bruce & Co., Inc., New York,
corporate

purposes,

—

New York.

Universal

Electronics Laboratories

Corp.

Oct. 28, 1960 (letter of notification) 75,000 shares of com¬
mon stock
(par 10 cents). Price — $4 per share. Busi¬
ness—The

manufacture, sale and installation of equip¬
colleges in the instruction of

ment used by schools and
modern foreign languages
ceeds

—

For general

(language laboratories). Pro¬
corporate purposes. Address — 510

W. 79th St., Miami, Fla. UnderwritersCo., Inc., New York City (managing).
Offering—Expected in mid-March.
>

Treat

common stock (par $2).
Price—$2 per share. Proceeds-^-For purchase of certain
property, for constructing a motel on said property and
various leasehold improvements on the property, Office
—7805 Sunset Boulevard, Los Angeles, Calif.
Under¬

writer—Standard

Yuscaran

Securities

Mining Co.

Corp.,

same

address.

May 6 filed 1,000,000 shares of common stock. Price— $1
share. Proceeds—It is eicpected that some $100,000
a mill for the proc¬

per

will be used to purchase and install

essing of

ore:

equipment;

$60,000 for rails, ties, rail cars and related
for rebuilding roads; . $30,000 for

$10,000

Volume

192

Number

6016

The Commercial and Financial Chronicle

(2699)

transportation equipment; and $655,000 for working cap¬

Baltimore Gas & Electric Co.

ital. Office—6815 Tordera St., Coral Gables, Fla. Underwriter—None. Note—The SEC has challehged the accu¬

and adequacy of this statement.
scheduled for Aug. 29 at the request

racy

counsel and the results have not

hearing
the

3, 1960 it was reported that the utility expects to sell
about $20,000,000 of additional securities, possibly bonds

company

derwriter

To be determined

—

Probable bidders:

Zurn

Industries, Inc.
Sept. 26, 1960 filed 200,000 shares of common stock ($1
par), of which 100,000 shares are to be offered for the
account of
the issuing
company
and 100,000 shares,
representing outstanding stock, are to be offered for the

Co.

by competitive bidding

Dallas

Halsey, Stuart & Co. Inc.; White, Weld

that
1506

Enterprises Inc.
18, 1960 it was reported that a letter of notifica¬
consisting of 100,000 shares of 10 cent par common

devices,

of parts

UNDERWRITERS!

to know about it

that

can

prepare an

item

similar to those you'll find hereunder.
Would
write

telephone

you

at 25 Park

REctor

2-9570

Place, New York 7, N. Y.

Industries

Corp.

Dec. 5, 1960 it was reported that

a "Reg. A" filing cov¬
ering 100,000 shares of the company's 10 cent par com¬
mon
stock is expected in early January. Price—$3 per

share.
For

Business—Manufacturer

equipment and general

furniture.

corporate

Proceeds—

purposes.

Office

1960

but

that

bonds or preferred stock are expected in late 1961
early 1962. Office—176 Remsen St., Brooklyn 1, N. Y.

Sept. 28, I960'it

was

and

California

was

reported that this
bonds in the first

$4,000,000 to $6,000,000
St. Louis, Mo.

vard,

share for each 20 shares held of record
Feb. 23. Price—To be somewhat below the market
one

new

price
outstanding stock at the time of offering. Proceeds
r-For expansion. Office—195
Broadway, New York 7,
of the

N. Y. Underwriter—None.
,

Approved Finance

company

quarter

plans to
of 1961.

sell
and

company is considering a
offering to stockholders of additional common
stock via a Regulation "A" filing, possibly to occur in
mid-1961.
Office—39 E. Chestnut St., Columbus, Ohio
Underwriter—Vercoe & Co., Columbus, Ohio.

rights

Arkansas

Power

Sept. 20, 1960 it

Light Co.

announced that this

was

subsidiary of

Middle South Utilities plans the issuance of approximate¬

ly $15,000,000 of first mortgage bonds, sometime in Mar.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Equitable Securities
Corp, (jointly); Blyth & Co. and Dean Witter & Co.
< jointly); Lehman Brothers, Stone & Webster Securities
Corp. and White, Weld & Co. (jointly); Merrill Lynch,
;
Pierce, Fenner & Smith Inc.
'

Transistor

Atlantic

Corp.

Sept. 12, 1960 the company reported that it is contem¬
plating filing its first public offering, consisting of a
letter of notification covering an undetermined number
of

shares of its $1 par common stock.

Company
makes
and
sells
breakable" marine radio known

Business — The
"water - tight,
un¬

the "Marlin 200." Pro¬

ceeds—For

the development of the

similarly constructed

"Marlin 300," which
with a ship-to-

out¬

The

—

Market

last

Carl M.

eight shares held. Proceeds—For

St.,

Loeb, Rhoades

bidders

Wilmington," Del.
offering was
& Co., New York

stock

common

Automated

were:

Langley

Sales

Corp.

Dyitacolor Corp.
Aug. 22, 1860 it was reported that new financing will
take place but there is no indication as yet as to type,
timing and amount. Office—1999 Mt. Read Blvd., Roch¬

Power Co.

loans.

Office—216 W.

Main

ester, N. Y. Underwriter—The company's initial financ¬
ing was handled by Lee Higginson Corp., New York City.

St., Medford, Oreg.

Dynamic Center Engineering Co., Inc.
3, 1960 it was reported that the company plans a
full filing of its $1 par common stock. Proceeds—To pro¬

Equipment Corp.
1960 it was reported that a full filing of about
$300,000 of units, consisting of common stock, bonds and
warrants will be made. Proceeds—For expansion of the

Oct.

mote the sale of

Ave., Woodhaven, N. Y.
Co., Inc. Registration—Ex¬

Sept. 21,

•

27, 1960, this company reported that a full filing
150,000 shares of common stock (par 10 cents) and
30,000 warrants will be made. Price—$2 per share and $2
per warrant.
Business — Makes magnetic brakes and
clutches. Proceeds—For expansion and the manufacture
of a new product. Office—59 New York Ave., Westbury,
N. Y. Underwriter—T. W. Lewis & Co., Inc., 61 Broad¬
way, New York City. Registration—Expected in midI
January.
of

1960 it was reported by Mr. Casavena, Presi¬

—

Chesapeake & Potomac Telephone Co.

Exploit Films Inc.
1960 it was reported that the company will file
of notification consisting of 150,000 shares of
common stock at $2 per share.
Proceeds—For the pro¬
duction of TV and motion picture films, the reduction
of indebtedness, and for working capital. Office—619 W.
54th St., New York City. Underwriter—McClane & Co.,
Inc., 26 Broadway, Npw York City. Registration—Ex¬
pected in January.
Oct. 28,
a
letter

(2/15)

Dec. 1, 1960 it was reported, that this A. T. & T. sub¬
sidiary plans to sell $20,000,000 of bonds. Office—Wash¬
ington, D. C. Underwriter—To be determined by com¬

petitive

bidding. Probable bidders: Firsi Boston Corp.
Lynch, Pierce, Fenner & Smiih (jointly);
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; White,
Weld & Co. Bids—Expected to be received on Feb. 15.
Merrill

Information Meeting—Scheduled

for Feb.

9 at 2:30

First Real Estate

p.m.

(EST) in Room 1900, 195 Broadwav. New York Citv.

Chicago, Burlington & Quincy RR.

9, 1960 it was reported that a stock offering of
$10,000,000 will be made to New York State residents

(1/4)

after

1, 1960 it was reported that bids will be rer°ived
by the road on Jan. 4, for $8,550,000 of equipment irust
certificates. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Salomon Bros. & Hur¬
ler and Halsey, Stuart & Co. Inc.
Interstate

Gas

rado

Springs, Colo.

Subsequently a filing will be made with
permit inter-state offering. Business

new

mutual fund

end subsequent to the sale of

which will

become

open-

this stock, and will invest

primarily in commercial real estate and short-term gov¬
ernment bills. Office—604 Fifth Avenue, New York City.
Sponsor—Fass Management Corp., New York City.
Fiorida Power &

Oct.

24,

1960

amount

Light Co.
reported that an undetermined
be offered in the Spring of 1961.

was

bonds may

Office—25' S.

2nd

Underwriter—
Probable bid¬
and
Co
Inc.; White, Weld & Co.; First Boston Corp.; Blyth &

To be determined

Ave., Miami, Fla.

by competitive bidding.

Merrill Lynch, Pierce, Fenndfr & Smith Inc.
Kidder, Peabody & Co. (jointly); Halsey, Stuart &
ders:

Columbus & Southern Ohio

Jan.

the SEC which will

—This is

Co.

Oct. 17, 1960 it was reported by Mr. A. N. Porter of the
company's treasury department that the company is
awaiting a hearing before the full FPC with reference
to approval of its application for expansion of its sys¬
tem, which will require about $70,000,000 of debt fi¬
nancing which is expected in the latter part of 1961.
Proceeds—For expansion.
Office—P. O. Box 1087, Colo¬

radio

Investment Fund

Dec.

Colorado

Dynamic Instrument Corp.

Dec.

Industries

dent, that registration is expected of approximately
$11,750,000 of common stock and $10,000,000 of deben¬
tures. Business
The company makes polystyrene and
polyurethane for insulation and processes marble for
construction. Proceeds—For expansion to meet $10,000,000 backlog. Office—250 Vreeland Ave., Paterson. N. J.
Underwriter—To be named. Registration—Expected in

and

products, purchase new equipment,
capital* Office — Norcross, Ga. Under¬

writer—To be named.

pected sometime4ji January.
Casavan

new

and for working

business. Office—97-02 Jamaica
Underwriter—R. F. Dowd

prices,
Office

8th

writers.

18, 1960 it was reported that the company expects
form

many as 18 products of various sizes and
will also accept exposed film for processing.

Electric Co.

Sept. 22, 1960 it was reported the company will sell about
$10,000,000 additional common stock sometime in 1961.
Proceeds—For expansion purposes. Office—215 N. Front

Co., Inc.

N. J. Underwriter—Mr. Roth, Comptroller, states that he
is actively seeking an underwriter to handle the offer¬

ing'. Note—The issuing

St., Columbus 15, Ohio. Underwriter—Dillon, Read & Co

oping plans for borrowing

shore

band.

Office—63-65

Mt.

company

Pleasant

Ave.,

Newark,

wholly-owned sub¬

sidiary of Auto-Temp Inc.
Automation

Development,

Septr20;-1960 it

Consolidated

Inc.

Dec.

reported that a "Reg. A" filing
comprising this firm's first public offering is expected
Note
This firm was formerly carried
in this col¬
was

—

umn

under

the

"Automation for
Industry
development of the "Sky*
jector." Office—342 Madison Ave., New York City. Un¬
derwriter—First Philadelphia Corp., New York City.
Registration—Imminent. Offering—Expected in January.
Inc."

14,

expected.
>L.

heading

Proceeds—For

Automation

Sept.
^

Ave., South, Nashville, Tenn. Underwriter—
Negotiations are in progress with several major under¬

Carbonic

Nov. 11, 1960 it was reported by Paul O.
Sebastian, Vice-

President-Treasurer, that the

each

Office—600

associates.

—223

late December.

Inc.

number

com¬

share for each

one

16, 1960 it was reported by Frazier N. James,
President, that a "substantial" issue of common stock,
constituting the firm's first public offering, is under
discussion. Business
The company makes a film and
flashbulb vending machine called DASCO, which will

1961 to raise about $12,000,000
approximately $7,000,000 of bonds and
$5,000,000 common stock. Proceeds—For the repayment

American

basis of

for

Diversified

San

California Oregon

Telephone & Telegraph Co. (2/23)
Dec. 21, 1960, the company announced that it
plans an
offering of additional shares to its stockholders on the

the

Nov.

Bernardino, Calif. Underwriters—To be de¬
termined by competitive bidding. Previous bidders: Kid¬
der, Peabody & Co.; Halsey, Stuart & Co.; First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.

Dec.

$6,000,000 of capital notes and
,/lbordinated notes. Office—

the basis of

Co., and Union Securities Co. (jointly); Lehman
Brothers; First Boston Corp.; White, Weld & Co., and
Shields & Co. (jointly); Kidder, Peabody & Co., and
Merrill Lynch, Pierce, Fenner & Smith Inc. (jointly).

Proceeds—For construction. Office—2885 Foothill Boule¬

bank

in the form of about

—

20, 1960, it
offer $8,000,000

1961

offering would be made to

Based

Electric Power Co.

Dec.

form of first

3, 1960, Donald L. Barnes, Jr., executive vice-presi¬
dent, announced that debt financing is expected in early

one

handled

reported that discussion is under
offering of about $300,000 of common
stock. It has not yet been determined whether this will
be a full filing or a "Reg. A." Business—The
company,
which is not as yet in operation but which has
pilot
plants, will mine and mill asbestos. Proceeds—To set up

concerning

The

held.

construction.

Corp.

the

Nov.

Underwriter
California Asbestos

^'American Investment Co.

1961.

holders in June 1956 consisted of 232,520 shares offered
$35 a share to holders of record June 6 on the basis

to come to market in late

St., S. W., Calgary, Alberta, Canada.

stockholders first

$25,000,000 to $30,000,000 of mortgage

Alberta Gas Trunk Line Co., Ltd.
Sept. 1, 1960 A. G. Bailey, President, announced that
new financing of
approximately $65,000,000 mostly in the

Office—502-2nd

Street, Dallas, Texas. Underwriter—To
by competitive bidding. Probable bidders:

standing on Sept. 30, 1960, the sale would involve about
418,536 shares.
The last offering of common to stock¬

Oct.

mortgage bonds, is expected early in 1961.

Brooklyn Union Gas Co.
Sept. 21, 1960 G. C. Griswold, Vice-President and Treas¬
urer, announced that there will be no further financing

—Chantilly, Va. Underwriter—Allen, McFarland & Co.,
Washington, D. C.

stated by the company's president
possibly be some new financing during
indication as to type and amount. Office—

summer

Calif. Registration—Indefinite.

Advance

Light Co*

Commerce

mon

actual operations. Address—The company is near Fresno,
Calif. Underwriter—R. E. Bernhard &
Co., Beverly Hills,

Prospective Offerings

&
was

Broadway, New York City.

way
we

—

★ Delaware Power & Light Co.
Dec. 23, 1960, Frank P.
Hyer, Cnairman, stated that this
company may issue additional
common
stock
in
the

Do you have an issue you're planning to register?

Our-Corporation News Department would

company will enter the
multiple line basis. Office

Price—$3 per share.
is engaged in the manufacture
for zippers. Proceeds—For expansion and gen¬
eral corporate purposes. Office—11-54 44th Drive, Long
Island City, N. Y. Underwriter—Harwyn
Securities, 1457

ATTENTION

To be named.

stock will be filed for this company.

equipment, fluid control

building plumbing drainage products and re¬
search and development of a synchro-gear assembly for
atomic submarines. Proceeds—For new equipment, the
repayment of loans, and working capital. Office—Erie,
Pa. Underwriter—Lee Higginson
Corp., New York Citv
(managing). Offering—Postponed.

may

be determined

Business—The company

tion

there

1961, with

Bo-Craft

account of the present holders thereof. Price—To be
sup¬
plied by amendment. Business — The manufacture oi
mechanical power transmission

Power

Sept. 14, 1960 it

and First Boston

Corp. (jointly); Harriman Rip¬
ley & Co., Inc. and Alex. Brown & Sons (jointly).

Nov.

Business—The

reinsurance

O. Box 669, Yankton South Dakota.
Underwriter—
Mr. Johnson states that the
company is actively seeking
an
underwriter.

preferred stock, sometime during the first half of
1961. Office—Lexington Building, Baltimore, Md.
Un¬

yet been announced.

field
P.

was

stock.

common

Oct.

Labs

further

Inc.

1960 it was reported that
Business — Electronics.;,

I., N. Y.

"Reg A" filing is

Office

—

Westbury.

Underwriter — Sandkuhl and Company,
Newark. N„ J., and New York City. Registration—Ex¬
pected in early January.
"

Natural

Gas

Co.

Ford Motor Credit Co.

Oct. 17, 1960 It was reported

that this company is devel¬
operations, which may in¬
clude
the
issuance
of
debt
securities, and possibly
occur in the first quarter of 1961. Office—Detroit, Mich.

(2/7)

reported that it plans to
SEC" $45,000,000 of 25-year sinking
fund debentures. Later in 1961 the company will issue
and sell an additional $25,000 000 of debentures. Proceeds
—To repay a bank loan and for construction.
Under¬
1960 the
with the

9,
register

company

General Resistance, Inc.
Sept. 19, 1960 it was reported that the company will file
a letter of notification, comprising its first public offer¬
ing. Office—577 East 156th Street, Bronx, N. Y.

writer—The last sale pf $25,000,000 of debentures on Feb.
9

Georgia Bonded Fibers, Inc.
Sept. 14, 1960 it was reported that registration of 150,000
shares of common stock is expected. Offices—Newark,

handled by Morgan Stanley &

Co., and The First
Boston Corp. Bids—It is expected that bids for the $45,000,000 issue will be opened on Feb. 7, 1961. Information
Meeting—Scheduled for Feb. 2 at 10:30 a.m. (EST) at
Bankers Club, 120 Broadway, New York City,
was

Dakota

ing

28,

1960

J., and Buena Vista, Va. Underwriter—Sandkuhl and
Company, Newark, N. J., and New York City. Registra¬
tion—Expected in late February or early March.

Reinsurance

Corp.
it was reported by Walter H. Johnson,
President, that the company plans its first public Offer¬
Nov.

yet undetermined

amount

of its $1

par

Goshen
.

Farms

Inc.

Oct. 5, 1960 it was reported that 100,000 shares of the
Continued

page

i-y

The Commercial and Financial Chronicle

(2700)

Continued from page 35

with

refunded

permanent

financing.
The last sale of
comprised $30,000,000 of first mort¬
eight series, due 1982. Proceeds—Of note

bonds in June

company's common stock will be filed. Proceeds—For
breeding trotting horses. Office—Goshen, N. Y. Under¬
writer—R. F. Dowd & Co. Inc. Registration—Expected
in late January.

gage

bonds,

issue

will

used

for

construction.

pected bond issue will be used to
construction.

Proceeds from

repay

notes

ex¬

and

for

Office—415 Clifford St., Detroit 26, Mich.
The last sale of bonds was handled by

Underwriters

Hoiistoiijyghting & Power Co.
Oct.

1957

—

17, 1960 Mr. T. H. Wharton, President, stated that
between $25-$35 million dollars is expected to be raised

White, Weld &c iCp., and Lehman Brothers, New York
(jointly). A competing bid was made by Halsey, Stuart

publicly sometime in 1961, probably in the form of pre¬
ferred and debt securities, with the precise timing de¬
pending on market conditions. Proceeds—For construc¬
tion and repayment of bank loans. Office — Electric
Building, Houston, Texas. Underwriter — Previous fi¬
nancing was headpd by Lehman Brothers, Eastman Dil¬
lon, Union Securities & Co. and Salomon Bros. &

Hutzler.

Indianapolis Power & Light Co.
According to a prospectus filed with the SEC on Aug.
25, the company plans the sale of about $14,000,000 of
additional

securities

Circle, Indianapolis,

Office

1963.

—

Monument

lnd.

Gauge & Instrument Co.
Oct. 5, 1960 it was reported that 100,000 shares of com¬
mon
stock will be filed. Proceeds
Expansion of the
—

business, and for the manufacture of

a new product by a
subsidiary. Office—1947 Broadway, Bronx. N. Y. Under¬
writer—R. F. Dowd & Co. Inc. Registration—Expected
in late January.

Safflower

Corp.

Oct. 28, 1960 it was reported that the company plans to
file a letter of notification consisting of 60,000 shares of

class A

stock

(par $2). Price — $5 per share.
outstanding loans, purchase of plant¬
ing seed, lease or purchase land, building and machinery
and for working capital. Office — 350 Equitable Bldg.,
Denver, Colo. Underwriter — Copley & Co., Colorado
Springs Colo.
common

Proceeds—To retire

Iowa-Illinois

Gas

Electric

Co.

Oct. 24, 1960 it was reported by the company treasurer,
Mr. Donald Shaw that the utility expects to come to

market, perhaps in mid-1961, to sell long-term securities
in the form of bonds and possibly preferred stock, with
the amount and timing to depend on market conditions.
The 1961 construction program is estimated at $17 mil¬
lion of which $10-$11 million will have to be raised ex¬

ternally. Office—206 E. 2nd St., Davenport, Iowa.
Japan Telephone & Telegraph Corp.
Oct.

27,

owned

1960 it
business

announced

was

that

this

governmentissue yihM the

plans a $20,000,000 bond
States. Proceeds—For expansion. Underwriters
—Dillon, Read & Co., First Boston Corp., and Kidder,
Peabody & Co. Offering—Expected in the Spring of 1S61.
United

L'Aiglon

Apparel, Inc.
Dec. 2, 1960, it was reported that
company plans to file
a registration statement with the SEC in
January cover¬
ing about 60,000 shares of common stock. Business—The
manufacture of ladies' dresses. Office—15th and Mt. Ver¬

Sts., Philadelphia, Pa. Underwriters—Alex. Brown
& Sons, Baltimore and Kidder, Peabody &
Co., New
York (jointly).
non

ing is that it will not be necessary to turn to long-term
securities until May 1962. Office — 1017 Olive
St., St.
Louis, Mo.
Lake Superior

stated

1960,

that

District Power Co.
A.

of first mortgage bonds, series F, due Feb.
1, 1991. Proceeds—To repay bank loans and for expan¬
Office

—

101

Second

St., Ashland, Wisconsin.

Registration—Expected about Jan. 9.
ceived in Chicago on Feb. 7.

Bids—To be

re¬

Long Island Lighting Co.
**
Nov. 11, 1960 it was reported by Fred C.
Eggerstedt, Jr.,
Assistant Vice-President, that the utility contemplates
the issuance of
$25,000,000 to $30,000,000 of first mort¬

;

gage bonds in the second

—250

Old

third quarter of 1961. Office

Country Road, Mineola, N. Y.

Macrose Lumber & Trim

Co., Inc.

Dec.

20, 1960, it was reported that this company plans
public offering of about 500,000 common shares
(par
$1) in early 1961. Office—2060 Jericho Turnpike, New
Hyde Park, L. I., N. Y.
"
*
Martin Paints &

Wallpapers

was

announced

that registration

stock.

7~For expansion, including

new warehouse

tional stores. Office—153-22
Jamaica Ave.,
r

Y* J^?de5vr,i,ter
York Citv N. Y.
£•

Hm'

Proceeds

and

addi¬

Jamaica, L. I.,
Thompson & Co., Inc.. New

Maryland Cup Co.
14, 1960 it was reported that Lehman Brothers is
handling preliminary work on a proposed
public offer¬
ing of securities. Registration—Imminent.
Dec

Midland

April 8 it
»-

Enterprises
was

Inc.

stated

in the company's annual
report
it contemplates the issuance on or before March
31,

15
0Ii?lssue *n
$4,000,000. Proceeds
nnn nnn

equipment
ordered.

presently

an aggregate amount not to exceed
—

To finance river
transportation
order
and
expected
to
be

Office—Cincinnati.

Ohio.

„

that

if equity

high

below

enough

the $3.20

Development

business

other
sion

Missouri
Dec.

common

transactions, in the location and
in Mississippi.

Pacific

1960 it

12,

RR.

(1/10)

the

that

reported

was

be determined by

road

competitive bidding.

ders: Salomon Bros. & Hutzler and

Bids—To be received

Bid¬

Halsey, Stuart & Co.,

Jan. 10.

Monroe

Mortgage & Investment Corp.
Cecil Carbonell, Chairman, announced
that this company is preparing a
"Iteg- A" filing covering
150,000 shares of common^stockT,5T,Trice — $2 per share.
Business—The company is engaged in first mortgage
financing of residential and business properties in the
Florida Keys. Proceeds—To expand company's business.
Dec.

12,

1960,

Office—700

Duval Street, Key West, Fla.
Underwriter
Offering—Expected in early January.

—None.

Montana-Dakota
Dec.
pany

Utilities

par), sometime in mid-January. On Dec. 13, stockhold¬
ers voted to increase the authorized preferred. Proceeds

—$3,000,000 will be used to repay bank loans and $2,000,000 will be added to working capital. Office—831 Second
Ave., South, Minneapolis, Minn. Underwriter—A previ¬
ous/ preferred
issue was underwritten on negotiated
basis by Blyth & Co., and Merrill Lynch, Pierce. Fenner
& Smith Inc., New York.
^ Motors Insurance Corp. (1/5)
Dec. 27, 1960 it was reported that a secondary offering
of $6,950,000 bonds of this subsidiary of General Motors
Acceptance Corp., will be made in January. Underwriter
—To be determined by competitive bidding. Bids—To
be received Jan. 5, 1961 at 11 a.m. (EST).
National State Bank of Newark

(N. J.)

9, 1960, it was reported that this bank plans to
offer stockholders the right to subscribe to 40,000 addi¬
of

(par $12.50) on the basis
shares held, after giving effect

capital stock

share for each

one

7.14%

rstock dividend. Transaction is subject to
approval of stockholders at^the bank's annual meeting
a

Jan.

10, and by the Comptroller of the Currency.
Price—$52 per share. Proceeds—To increase capital and
on

Office—Newark, N. J.

Underwriter—None.

Inc.
Nov.
15, 1960 it was reported that a filing of ap¬
proximately 17,000 shares of common stock is under
discussion, but registration is not imminent. Office—513
W. 166th Street, New York City. Underwriter—Van Alstyne, Noel & Co., New York City.
Public Service,

Inc.

Nov. 10, 1960 it was reported that an issue of $15,000,000
of first mortgage bonds is expected in May, 1961. Office
—317

Baronne

St., New Orleans, La. Underwriter—To
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lee Higginson Corp., Equi¬
table Securities Corp. and Eastman Dillon, Union Securi¬
ties & Co. (jointly); Kidder, Peabody & Co. and Stone
& Webster Securities Corp. (jointly); White, Weld & Co.;
be determined by

Salomon

Brothers & Hutzler.

York

New

Central

RR.

$4,125,000 of equipment trust certificates. Underwriters

Northern Fibre Glass Co.

Northern Illinois Gas Co.

1960 C. J. Gauthier, Vice-President-finance re¬

Office—50 Fox

1961.

St., Aurora, 111. Underwriters—
The First Boston Corp. and Glore, Forgan & Co., New
York, N. Y. (managing).
One

Maiden

29,

1960

Lane
was

Fund, Inc.
reported

that

registration

ex¬

pected sometime in early Jan. of 300,000 shares of com.
stock.

For

Business—This is

new

mutual fund.

Proceeds—

investment, mainly in listed convertible debentures
Office—1 Maiden Lane, New

and U. S. Treasury Bonds.
York

•

Dec. 14, 1960, it was reported that this company has ap¬
plied to the SEC for an order under the Holding Com¬
pany

Act, authorizing the

mortgage

bonds, 3V4%

issuance

$878,000

first

series, due

sinking fund purposes. Office
Castle, Pa. Underwriter
competitive bidding. Probable
New

1982. Proceeds—For
—
19 E. Washington St.,
—
To be determined by
bidders: Halsey, Stuart &
Co.; White, Weld & Co.;

Co. Inc.; Kidder, Peabody &
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Smith Inc., and Dean Witter & Co. (jointly).
Power Chem
Oct.

Industries

1960 it was reported that the company plans a
"Reg. A" filing of 75,000 shares of common stock, con¬
stituting its first public offering. Business—The com¬
pany

18,

is in the

process

of organizing and will manufac¬

general corporate purposes.

Office — 645 Forrest Ave.,
Island, N. Yf Underwriter — Ronwin Securities
Inc., 645 Forrest Ave., Staten Island, N. Y. Registration
—Expected in January.
Staten

Public Service Co. of Colorado

Dec. 2,

1960, W. D. Virtue, treasurer, stated that

com¬

pany plans the sale of about $20,000,000 of common stock
to be offered stockholders through subscription
rights
in mid-1961. Proceeds—For expansion. Office—900 15th

St., Denver, Colo. Underwriter — Last equity financing
handled on a negotiated basis by First Boston Corp.!

Puget Sound Power & Light Co.

Nov. 10, 1960 it was reported that the number of author¬
ized common shares had been increased from 3,266,819
to

5,000,000, and that some of the added shares might be
issued in 1961. Office—860 Stuart Bldg., Seattle 1, Wk&h.
Underwriter
Previous financing has been handlecTby

Blyth & Co.
Ram

Electronics,

Inc."

Nov. 4, 1960 it was reported that a letter of notification
is expected comprising this firm's first public offering.

Office—Paramus, N. J. Underwriter—Plymouth Secu¬
Corp., New York City. Registration—Expected in
early January.
".
p
rities

•

Richards Aircraft

1960 it

was

Supply C6.f Inc.
reported that a "Reg. A" filing of

the company's common stock is

expecte^. Proceeds—For

expansion and working .capital. Office—Ft. Lauderdale,
Fla. Underwriter—Blaha & Co., Inc., Long Island City.
N. Y.
Rochester Gas & Electric Corp.
(3/15)
Aug. 1, 1960 it was reported that $15,^)00,000 of debt
financing is expected. Underwriter—To be determined
by competitive bidding, Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.,
White, Weld & Co.
and Shields & Co. (jointly); Kuhn, Loeb &
Co.; Salomon
Bros. & Hutzler, Eastman Dillon, Union Securities &
Co.,
and Equitable Securities Corp.
(jointly); Blyth & Co.,
Inc.; The First Boston Corp. Bids—Tentatively expected
on

March 15.

(Jos.)

Schlitz & Co.

March 11 it

was

reported that

secondary offering might
Lynch, Pierce, Fenner
Smith Inc. and Harriman Ripley & Co.
Inc., both of
New York City.
:
—

Merrill

Security National Bapk of Long Island

(1/17)

Dec. 1, 1960 it was reported that the bank
plans to issue
97,371 shares of common stock to be offered to stock¬
on

the basis of

one

new

share for each 10 shares

held of record Jan.

17, subject to approval of its stock¬
holders and Comptroller. Price—To be set at the annual
meeting

Jan. 17. Proceeds—To increase capital. Office
(man¬

—Huntington, N. Y. Underwriter—Bache & Co.
aging).

ported that of the $95,000,000 in outside financing that
will be required in the next four years to complete a
$200,000,000 construction program, an unspecified
amount might be raised through a common stock issue

Aug.

aging )

holders

Sept. 28, 1960 it was reported that this company is plan¬
ning to issue 100,000 sh&res of $1 par common stock un¬
der a letter of notification. Office—St. Paul, Minn. Un¬
derwriter—Irving J. Rice & Co./ St. Paul, Minn.

York City. Under¬
Fenner & Smith Inc., and
Kidder, Peabody & Co., both of New York City (man¬

—Salmon Bros. & Hutzler and Halsey. Stuart & Co. Inc.
Bids—To be received on Jan. 18 at noon (EST).

Nov. 9,

Office—120 Broadway, New

be made. Underwriters

(1/18)

Dec. 5, 1960 it was reported that the road plans the sale
of

be offered

writers—Merrill Lynch, Pierce,

Oct. 10,

Nedick's Stores,

Orleans

1961.

that $65,000,000 of deben*
in the second quarter

was reported

expected to

are

—

Dec.

Office—600 California

ture additives for fuel oils. Proceeds—For expansion and

Co.

1, 1960, F. R. Gamble, Treasurer, stated that com¬
plans to sell $5,000,000 of preferred stock ($100

tional

share level.

Pennsylvania Power Co.

plans the
$3,210,000 of equipment trust certificates. Under¬

writer—To

Inc.

expan¬

businesses

financing is used the amounts; won't
dilute earnings of the common to

per

Panhandle Eastern Pipe Line Co.
tures

stock, of which $500,000will be subscribed for by utility companies and
$500,000
will be sold to business and industry and the general
public. Business—To assist via loans, investments, and
par

W. Miller, chair¬

probably go to the rparket
of new financing in 1961,

St., San Francisco 8, Calif.

38, N. Y.
Underwriter—G.
Lane, New York 38. N. Y.

Nicholis

Inc.,

Maiden

•jfr Michigan Consolidated Gas Co.
s Sept.
9, I960, the SEC authorized this subsidiary of
j- jAmerican
Natural Gas Co., to issue up to $18,000,000
short-term notes due Aug. 31, 1961. The
notes will be

but

$1,000,000 of $10

ex¬

pected of the company's first public
offering which is
expected to consist of about $650,000 of convertible de¬
bentures and about $100,000 of common

Industrial

man, that the company will
for $30,000,000 to $50,000,000

Sept. 28, 1960 it

Aug. 29, 1960 it

Business

Pacific Lighting Corp.

Nov. 10, 1960 it was reported by Robert

Corp.

New

Chairman and President
plans the issuance and sale of

$30,000,000
sion.

Mississippi

(2/7)

Donald,

the company

Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;
W. C. Langley & Co. and Glore, Forgan & Co. (jointly).

Nov. 28, 1960 it was reported that the company will issue

surplus.

Laclede Gas Co.

Nov. 15, 1960 Mr. L. A. Horton, Treasurer, reported that
the utility will need to raise
$33,000,000 externally for
its 1961-65 construction program, but the current feel¬

Dec.

Inc.

sale of

Industrial

International

Co.

Thursday, December 29, I9601

Orange & Rockland Utilities, Inc.
Oct. 18, 1960 it was reported that the sale
lion of 30-year first mortgage bonds is

of the $10 mil¬
tentatively ex¬
pected in April, '1961. Office —10 North Broadway,
Nyack, N. Y. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: First Boston Corp.;

South

Nov.

Carolina

Electric

& Gas

Co.

14,

1960 C. M. Over, Treasurer, reported that this
utility is tentatively planning to issue $8,000,000 of first
and

refunding mortgage bonds and $5,000,0j)0 principal
a new series of
preferred stock in March 1961.
390, Columbia, S. C. Underwriter—
To be determined by competitive bidding. Previous bid¬
ders for the company's bonds were First Boston Corp.
and Lehman Brothers (jointly); Kidder, Peabody & Co.;
Halsey, Stuart & Co. Inc.; and Eastman Dillon, Union
Securities & Co.
The last preferred offering was nego¬
tiated by Kidder, Peabody & Co.
-

amount of

Address—-P. O. Box

Southern

Oct. 28,
pany

Natural

1960 it

Gas

Co.

reported by Mr. Loren Fitch, com¬
that the utility is contemplating the

was

comptroller,

sale of $35,000,000 of 20-year first mortgage bonds some¬
time in 1961, with the precise 'timing
depending on

market

conditions.

Proceeds '■—

Office-—Watts Building,

retire

bank* loans.

Birmingham, Ala. Underwriter
—To be determined by competitive- bidding.^ Probable
bidders: Halsey, Stuart & Co. Inc-V First Boston Corp.;
Blyth & Co. and Kidder, Peabody & Co. (jointly).

Volume 192

Number 6016

The Commercial and Financial Chronicle

(2701)

37
kLS

Southern
Dec.

Pacific Co.

(1/11)

12,

1960 it was reported that the road plans the
$8,400,000 of equipment trust certificates dated
Feb. 1,1961, to mature in 15 equal annual instalments.
sale

The

certificates represent about 80% of the cost of 12
locomotives and 507 freight cars. Underwriter—To be de¬
termined by competitive bidding. Bidders:
Halsey, Stuart
& Co. Inc. and Salomon Bros. & Hutzler. Bids—To be
received

Jan. 11 at

EST.

noon

Southern Railway Co.

Nov.

21, 1960 stockholders approved the issuance of
$33,000,000 of hew bonds. The issuance of an unspeci¬
fied amount of additional bonds for other purchases was
also approved. Proceeds — For general corporate pur¬
poses, including the possible acquisition of Central of
Georgia Ry. Office—Washington, D. C. Underwriter—
Halsey, Stuart & Co. Inc., will head a group that will
bid

the bonds.

Southwestern

Public Service Co.

Office—720

Texas.

Waldorf Auto Leasing Inc.
Nov. 23, 1960 Mr. Tortorella, company secretary stated
that a "Reg A" filing is expected. Office—2015 Coney
Island Avenue, Brooklyn, N. Y.
Underwriter — To be

Co.,

stock, has

agreed to take up its pro rata share of the debentures
($78,000,000) and ehough of any unsubscribed deben¬
tures to provide TWA with at least $100,000,000. In addi¬

named.

tion, Hughes Tool agreed to place its 78% stock interest
in a 10-year voting trusteeship consisting of three mem¬
bers, representing itself and the senior lenders. Proceeds
—To giveTWA direct ownership of a jet transport fleet.
Office—10 Richards Road, Kansas City 5, Mo, Under-writers — Lazard Freres & Co., Lehman Brothers and
Dillon, Read & Co., Inc., all of New York City (man¬
aging). Note—The transaction is expected to be finalized
Dec. 29.

V
Tronomatic

Corp.

Dec. 20, 1960, it was reported that

letter of notification

consisting of 57,000 shares of common stock will be filed
Price—$4 per share. Proceeds-^For new
product development and sales promotion. Business—
The manufacture of plastic forming, molding and fabri¬
cating equipment. Office — 25 Bruckner Blvd., Bronx,
N. Y. Underwriter — Plymouth Securities
Corp., New
York City. Registration—Expected in
early January.

for the company.

Aug. 9, 1960, it was reported that in February, 1961, thfe
company expects to offer about $15,000,000 in bonds and
about $3,000,000 in preferred stock, and that about one
year thereafter a one-for-twenty common stock rights
offering- is planned, with the new shares priced about
6y2 % below the then existing market price of the com¬
mon.

chase warrants to TWA stockholders. Hughes Tool
holder of 78% of the company's outstanding

Mercantile Dallas Building, Dallas

Underwriter—Dillon, Read & Co., Inc.

Storer

Broadcasting Co. V
v
Sept. 28, 1960 it was reported that a secondary offering
is being planned. Office—Miami Beach, Fla. Underwriter
—Reynolds & Co., New York City.

Trunkline Gas Co.

Co.

1960 the company disclosed that it is consider¬
ing the issuance of up to $35,000,000 of convertible de¬
Stockholders will vote Jan. 26 on increasing

bentures.

the authorized

common stock from
6,000,000 to 8,000,000
provide additional underlying shares for the
proposed convertible issue. Proceeds — For expansion
and working capital. Office—Union Stock Yards, Chi¬
cago 9, 111. Underwriter—The last issue of 4%% deben¬
tures on Oct. .29, 1958 was placed privately through Salo¬
mon Bros. & Hutzler, New York
City.
• r

Office—120 Broadway, New York City. Underwriters—
Merrill Lynch, Pierce, Fenner & Smith Inc., and Kid¬

Winter Park Telephone Co.
May 10 it was announced that this company, during the
first quarter of 1961, will issue and sell approximately
30,000 additional shares of its common stock. This stock
will be offered on a rights basis to existing stockholders
and may or may not be underwritten by one or more
securities brokers. Future plans also include the sale

Electric Co.

Texas Gas Transmission

Corp.
Dec. 2, 1960, W. M. Elmer, President, stated that the
company is planning a $25,000,000 debt and equity fi¬
nancing program, for 1961. It is expected that a registra¬
tion statement covering the proposed financing will be
filed in fourth quarter of the year. Proceeds—For pipeJirie expansion. Office—Owensboro, Ky. Underwriter—
Last sale of

preferred;stock on October 1959 was handled
by Dillon, Rriad & Co., New York.
'
;
I

2, 1960 it was reported that the utility has tenta¬
tively scheduled a preferred stock offering or a com¬
bination debt and preferred offering of about $30,000,000
for late 1961 or early 1962. Proceeds—For expansion Of
Office

—

315

12th

Blvd.,

St.

Louis,

Mo.

Underwriter—To be determined by competitive bidding.
The last sale of preferred in November 1949 was under¬

First Boston Corp.; Dillon, Read & Co., Leh¬
Brothers; White, Weld & Co. and Shields & Co.
(jointly); and Blyth & Co.
The last sale of bonds in
September 1960 was bid for by Lehman Brothers, Blyth
& Co. and Bear, Stearns & Co. (jointly); First Boston
Corp. and Halsey, Stuart & Co. Inc.

^ Wisconsin Power & Light Co.
Dec. 22, 1960, J. D. Howard, Vice-President, stated that
this company will give consideration to some sort of

man

Van

Dusen Aircraft Supplies,

stock financing in late 1961 or early 1962. The last sale
of common stock Was in May 1958 when common stock-

rights to subscribe to 241,211
at $26.25 a share on the basis of one
share for each 12 shares held. The last sale of preferred

hoTdefS of record May 5 had

Inc."

was also in May 1958 when preferred stockholders had
rights-to buy 30,000 shares of 4.76% preferred ($100 par)
at $100 a share, Proceeds—For expansion, Underwriters
The previous sale of common and preferred stocks
was handled by Smith, Barney & Co., New York and
Robert W. Baird & Co., Inc., Milwaukee (jointly).

100,000 shares of this firm's $1 par common stock. Pro¬
For expansion.
Office
Minneapolis, Minn.

ceeds

—

Underwriter—Stroud &

Co., Philadelphia, Pa.

;

-T-

ordinated ineome debentures with detachable stock pur¬

June

Airlines, Inc.

13.

...

■'v'

ties.

Anti

microbial

formulas

Eversan and Argosan were

devel-

as
a
by-product of the
electro-chemical side of Yardney's

tqped

main business.

Zinc and silver have long been
used

medically in healing agents

Yardney Chemical has also de¬

veloped Vitanyse which has the
amazing property of dyeing fab¬
rics up to 40 times faster than
previously. This of course means
that the capacity of a given plant
can
be/'multiplied many times
without

the

need

for

additional

but in the above mentioned prod¬

facilities. One of its most impor¬

ucts, Yardney has developed new

tant applications is to render ny¬
lon "breatheable" and "wettable."

avenues

in the

Eversan

ods.

which

use

tasteless,

of these meth¬
a

bacteriostat

odorless

This

could

extremely im¬

harm, since any harmful bacteria with
be

san's

use

killed

contact.

Ever-

in fabrics as a permanent

deodorant

and purifier

would be

economical and very effective.
Argosan is also an anti-microbial
compound with bacteriocidal
qualities Which
has performed
very effectively in clinical tests
when used in

pharmaceuticals. It

effective in one case
than penicillin. An important area
for the use of Argosan is water
was

Wisconsin'Southern Gas Co..
12, 1960 it was reported in a company prospectus
that an undetermined amount of capital stock or bonds
Dec;

Proceeds—For the repayment
for property addi¬
tions, Officer-Sheridan Springs Road, Lake Geneva, Wis.
Underwriter — The Milwaukee Co., Milwaukee, Wis,
will be sold in 1961-1962,
of

short-term

bank

loans incurred

(managing).

To Be Reiner, Unburn

most

consistent

manner.

There

have

The firm
2

name

Broadway,

of Jaffee

New

York

Co.,
City,

members of the New York Stock

Exchange, on Jan. 1
will be
changed to Reiner, Linburn°& Co.
Harold Reiner, member of_ the
Stock Exchange, will become a
partner in the firm Jan. 1. On
Jan. 5, Harold Charno and Ber¬
nard J. Harris will be admitted.
On

Dec,

31,

Wilton

Jaffee

will withdraw from general part¬

nership in Jaffee & Co. and Ethel
1956 to fiscal 1960, been no fits and starts with Yard¬ L. Reiner and Elaine L. Ross from
striking fact is that earn¬ ney, no erratic profit-and-loss pat¬ limited partnership.
ings have increased by over 1§0%. tern, but a steady growth which
has neverjraded sales volume for,
Per-share earnings have
grown
)
Ohio Co. Branch
doubled from

but the

from 18 cents in 1956 to 47 cents

1960.

Sales

have

risen

from

Opened

earningymid has never expanded

until

sales

the

base

was

solid

TOLEDO, Ohio.—The Ohio Com¬

$7,500,000 in the enough to support the expansion. pany has opened a branch office
We have foundryardney man¬ at 2117 Jefferson Avenue under
the management of Roy L. Witteagement mature, (Imaginative and
bort.
t
000,000 and earnings at approxi¬ knowledgeable. In other words,
unbearably hot in the mately 60 cents
V ' '
'
'
A
the type of men that can meet
per share.
and have a tendency to
Ne# Parker-Ford Branch
It is within the realm of proba¬ the challenge ot dynamic growth.

fection, since unlike competing summer
products it is non-toxic at full retain perspiration under the gar¬
effectiveness. A new plastic which ment. This new discovery of Yard¬
has been developed using Ever¬ ney Chemical would change all
san has shown bacteriocidal quali¬
this and make the garments quite
ties and can be used in stach things comfortable. Also, it allows such
as children's toys with the result
fibers as cotton, wool and syn¬
that the child can drop the toy on
thetics, when combined with ny¬
the floor or street and then place lon to be dyed much more effec¬
it. back
in
his mouth without tively than can presently be done
will

Yardney sales have more than

and portant development for the nylon
in

and can be applied to industry since the most common
a wide variety of materials which
complaint among consumers as re¬
include fabrics, rubber and plas¬ gards nylon garments is that al¬
tics. Its use in hospitals may be
though they are quick drying, they
dramatic in the fight against in¬ are also

non-toxic

cially in a science company/ the
important single considera¬
tion is the ability of its manage¬
ment. Yardney's technical com¬
petence is renowned in the indus¬
try.
Its
international research
team of over 160 research scien¬
it has no other debts outstanding, tists
and
engineers have made
The company since its inception significant break-throughs in the
has had an average rate of growth energy area. But as important to
of approximately 24% and we an¬ me has been Yardney's manage¬
ticipate the grriwth for 1961 will ment's ability to produce profits
and growth in a well organized,
be at the rate of 30%.

development of its chemical sub¬
sidiary have all been done through
internal financing. Yardney today
Continued from page 2
purification since it is non-toxic, has a strong working capital posi¬
tasteless and odorless and its long- tion, an attractive current ratio
tory investigation to develop a
number of
chemical compounds lasting effectiveness can make it close to 3 to 1? and except for
a small mortgage note of $80,000
which have remarkable proper¬ a competitor of chlorine. •'

BEST...

common

Nov. 1, 1960 it was reported that registration is expected
in early January of a. letter of notification covering

8, 1960, it was announced that arrangements had
been virtually
completed for Jong-term financing to
insure the pearly delivery of 20 Convair jet aircraft and
the financing of the company's present fleet of 27 Boeing
707 jetliners. Under the plan, a total of $165,000,000 will
be borrowed from a group of banks and insurance com¬
panies and $100,000,000 raised through the sale of sub¬

Trans World

$2,000,000 of bonds in the second quarter of 1961.
England Ave., Winter Park, Fla.

Office—132 East New

written by

Virginia Electric & Power Co. (6/13),
:
Sept. 8, 1960 it was reported that the company will need
$30,000,000 to $35,000,000 from outside sources in 1961.
The financing will probably take the form of bonds and
timing will depend upon market conditions.
Office —
Richmond 9, Va.
Underwriter— To be determined by
competitive bidding.; Probable bidders: Halsey, Stuart
& Co., Inc.; Stone & Webster Securities Corp.; Eastman
Dillon, Union Securities & Co.; Salomon Bros. & Hutz¬
ler; Goldman, Sachs & Co. Bids—Expected on or about

Dec.

Internatjopal-oL$4,500,000 of senior 15debentures to be-taken up/or placed by American
Securities Corp., New York.
M addition, about $4,000,000 of subordinated debentures and 400,000 shares of
class A stock wouldAbe offered hrStockholders of West¬
ern Union Teiegrapn Co.
/American Securities Corp.,
would purchase fromWestern
Union/International about

tration—Imminent.

der, Peabody & Co.„ both of New York City (managing).

facilities.

Western Union
year

Whlppany Paper Board Co.
July 19, 1960, it wa$ Reported that this New Jersey com¬
pany plans to register an issue of common stock. Under¬
writer—Van Alstyne, Noel & Co., New York City. Regis¬

Dec.

Swift &
Dec. 28,

plan with the FCC to transfer its Atlantic cable system
to a newly organized company, Western Union Inter¬
national, Inc. The plan provides for the issuance by

133,0QjJ additional sharer of class A/stock giving Ameri¬
cans-Securities ownership of approximately 25% of the
outstanding class A stock of WUI. In addition, Western
Union Telegraph would purchase 250,000 shares of class
B stock for $100,000. Office—60 Hudson
St., New York.
Underwriter—AmericamSecurities Corp. (managing).

Sept. 28, 1960 it was reported that approximately $15,000,000 of bonds and $5,000,000 of preferred stock are
expected to be offered in the second quarter of 1961.

Union

Union Telegraph Co.
1960 it was reported that this company filed

Western

Dec. 6,

more;

any

All the

other chemical.
above

$3,500,000 to

over

5-year period and we esti¬
mate sales for fiscal 196T at $10,same

■

bility that with the growth of
commercial application of its spe¬
cialized

batteries

the addi¬
production
and Vitanyse
to
see
Yardney's
consolidated
earnings per share reach much
higher levels in a few years. The
almost complete absence of out¬
side financing not
only speaks
well of the financial competence
of the company's management but
plus

tion of the commercial
of Eversan, Argosan

Since

with

than

are

concerned more and

"market

"stock market"

of stocks"
it has be¬

AMARILLO, Tex. —Parker-Ford
& Company, Inc., has opened a

branch
office
in
the
Vaughn
important to Building under the
management
with strong
of Walter S, Mount, Jr.
individual growth patterns." Con¬
sidering the criteria of sound
come

invest

increasingly
in

situations

management, dynamic product po¬

tential,
research

Southern Inv. Branches

BIRMINGHAM, Ala.--Southern
good financial condition, Investment
Services,
Inc.,
has

and
technical compe¬
opened four branch offices in the
yet to be produced in commercial
tence, combined with every evi¬ South: Huntsville, Ala., at 614
quantities arid therefore have not
Madison Street, under the direc¬
is also a reflection of the strong dence of an established growth
in any way added to sales and
tion of W. H. Birmingham; Marion,
earnings for Yardney. We suggest cash-flow position that the com¬ trend in sales and earnings, it is
Ala., at Washingtton Street, under
that commercial development is pany possesses.
our feeling that Yardney Electric
Although not
the direction of Joseph T. Scar¬
not far away and when it occurs
showing up in reported earnings, Corporation possesses an unusual borough; Daytona Beach, Fla., at
it
can
only have an explosive
it is an important determinant of potential for major capital gains. 2129 South Atlantic Avenue, un¬
effect
On
Yardney
sales
and
der Joseph G. Barry; Pensacola,
The stock is traded in the Overfuture growth.,
' 1
earnings.
Fla., at 1800 North E Street, un¬
It is often said that when some- the-Counter Market and is curder the direction of Cecil A. BasYardney's amazing su0cess in
the compact power field and the one invests in a company, espe- rently quoted at a price of 20. sett.
.

compounds have

*s."

The Commercial and Financial Chronicle

(2702)

Indications of Current

The following statistical tabulations
latest week

Business Activity

week

that date,

Thursday, December 29, 1960

production and other figures for the

cover

Dates shown in first column

month available.

month ended

or,

of quotations,

cases

are

either for the

of that date:

are as

•y
Latest

AMERICAN

IRON

Indicated

operations

Week

INSTITUTE:

STEEL

AND

Steel

cent capacity)

(per

ALUMINUM

96.3

48.9

ingots and

Production of primary aluminum

castings

(in

2,726,000

1,393,000

*1,325,000

§1,122,000

Dec, 31

tons)

(net

short

Crude
42

and

gallons

Crude

(bbla. of

output—daily average

each)
to

runs

Gasoline

condensate

Kerosene

output (bbls.)

Distillate

fuel oil

Residual

fuel

oil

(bbls.)—

output

2,956,000

2,928,000

3,269,000

12,924,000

12,859,000

13,138,000

6,644,000

6,658,000

6,038,000

189,959,000

187,136,000

184,911,000

freight

cars

Revenue

Month

27,195,000
156,195,000

Dec. 16

48,632,000

48,820,000

47,963,000

52,476,000

486,059

517,653

567,299

615,333

454,392

480,269

494,099

565,360

Dec. 22

$443,900,000

$300,900,000

$613,400,000

Dec. 22

158,600,000

171,900,000

365,300,000

213,300,000

Domestic

Dec. 22

285,400,000

248,100,000

194,800,000

Domestic

warehouse

153,200,000
94,900,000

138,200,000

Dollar exchange
Based on goods

State

Dec. 22

OUTPUT

(U.

Bituminous coal

STORE

*7,475,000
402,000

8,045,000
377,000

460,000

Dec. 17

305

296

170

318

15,114,000

15,021,000

13,500,000

13,349,000

56,600,000

100

YORK—As

Nov.

30:

—

$66.32

444,791,000

419,386,000

226,457,000

283,282,000
29,269,000

$28.33

$41.17

1,867,646,000 1,753,235,000 1,028,819,000
OF

DEPT.

dwelling
and

4,726

3,486

3,492

1,857

1,940

2,112

1,436'

1,663

4,801;

.___

'.—._

(non-farm)

units

5,066

3,374

1,378

—

buildings

__—

alterations—

381

392

Commercial

372

189

185

193—

187

188

278

284

255

.____

—__

256

382

—

912

)263

■

923

Industrial

422

Nonhousekeeping
Nonresidential buildings

$66.41

$28.50

Dec. 20

.—

$66.32

.___

construction

New

6.196c

Dec. 20

steel (per gross ton)

45,601,000

November (in millions):

construction

new

Private

195

276

351

CONSTRUCTION—U. S.

Residential

253

Dec. 20

(per lb.)
(per gross ton)

89,321,000

138,760,000

•

shipped between

and

—

Additions

steel

142,599,000

credits

stored

LABOR—Month

COMPOSITE PRICES:

IRON AGE

215,776,000

;

BANK

BUILDING

.Dec. 22

INC

354,889,000

OUT¬

RESERVE

Total—

Total

DUN

INDUSTRIAL)

AND

405,132,000
632,958,000
14,400,000

9,569,000

INSTITUTE:

(COMMERCIAL

BRADSTREET,

7,260,000
403,000

Dec. 24

AVERAGE

NEW

omitted)

ACCEPTANCES

FEDERAL

—

foreign countries

(in 000 kwh.)

output

FAILURES

35,800,000

INDEX—FEDERAL RESERVE

SALES

SYSTEM—1947-40
EDISON ELECTRIC

90,900,000

Dec. 17

(tons)

lignite

$217,139,000

646,746,000

BUREAU OF MINES):

and

Pennsylvania anthracite (tons)
DEPARTMENT

194,500,000

Dec. 17

municipal

129,000,000
93,200,000

Dec. 22

and

$233,110,000

401,238,000

GOVERNORS

(000's

DOLLAR

STANDING
OF

Federal

6,755,823

6,464,149

;

Imports

...

—

tons)

November

BANKERS'

•

construction

Public

6,782,637

2,218.

387

shipments——____

(in

DEBITS—BOARD

construction—

36,555

$235,183,000

$408,100,000

Private

22,900

THE FEDERAL RESERVE SYSTEM—Month

RAILROADS:

construction

carriers
BANK

CONSTRUCTION—ENGINEERING

ENGINEERING

Pig iron

22,781

_____

transport

36,833,000

AMERICAN

2,424

4,632

ASSOCIATION, INC.—

freight

general

175,327,000

5,885

3,799

October:

Intercity

35,353,000

NEWS-RECORD:

Finished

.3,680

undelivered

—

freight loaded (number of cars)
—Dec. 17
freight received from connections (no. of cars)—Dec. 17

Revenue

109,065

12,995,000

month)

167,038,000

(bbls.) at

168,206,

____

.—

and

order

AMERICAN TRUCKING

182,838,000

cars

delivered

cars

(end

6,929,000

Dec. 16

(bbls.) at

172,973
211,716

November:
new

34,603,000

ASSOCIATION

Scrap

Backlog

pipe lines—

for

freight

159,534,000

oil

Residual fuel oil

Electric

New

Dec. 16

fuel

COAL

Orders

13,018,000

(bbls.) at

Distillate

Total

29,331,000

Dec. 16

(bbls.)

162,882,
225,874

September

INSTITUTE—

CAR

Dec. 16

Kerosene

CIVIL

8,071,000

28,205,000

2,667,000

;;

unfinished gasoline

and

7,987,000

28,771,000

Dec. 16

Stocks at refineries, bulk terminals, in transit, in
Finished

7,887,000

28,602,000

—Dec. 16

output (bbls.)

Month

7,138,775

6,968,160

7,132,260
fl7,927,000

Dec. 16

—

7,152,060

Dec. 16

(bbls.)

average

(bbis.)_

RAILWAY

Dec. 16

stills—daily

output

AMERICAN

(short tons) end of Sep.

INSTITUTE:

PETROLEUM

oil

Ago

in the U. S.

146,100,000

tons)—Month

Stocks of aluminum
AMERICAN

Year

Month

MINES):

Equivalent to—
Steel

(BUREAU

Month

Ago

*46.5

§39.4

Dec. 31

Latest

Year

Month

68
/s-

810

**>• •*'

200

355

...
'

Office buildings and

warehouses^
Stores, restaurants, and garages
Other nonresidential buildings
Religious

& M. J. QUOTATIONS):

METAL PRICES (E.

Electrolytic copper—
Domestic

Export

refinery

-Dec. 21

29.600c

33.775c

-Dec. 21

refinery

27.550c

28.150c

27:550c

30.650c

—

Educational

Lead

(New York) at

-Dec. 21

11.000c

12.000c

Lead

(St. Louis)

-Dec. 21

10.800c

11.800c

(delivered)

-Dec. 21

12.500c

13.000c

13.500c

13.000c

Social

-Dec. 21

12.000c

12.500c

13.000c

12.500c

Miscellaneous

-Dec. 21

26.000c

25.400c

Farm

101.375C

102.875c

99.125c

Public

87.30

86.65

80.42

tZinc
Zinc

(East St.

Louis)

Aluminum

(primary pig, 99.5% ) at
Straits tin (New York) at

•

-Dec. 27

86.51

86.78

-Dec. 27

90.91

91.34

87.59

88.81

88.95

85.07

Residential

82.24"

Telephone

corporate

Average

—

Aaa

-Dec. 27

Railroad

MOODY'S
S.

Group

BOND

83.79

Bonds

corporate

83.53

Nonresidential

78.66

Educational

87.86

83.66

Hospital

88.13

88.54

85.85

Administrative

4.67

4.89

4.32

4.59

4.49

4.78

4.35

4.51

4.50

4.71

4.69

5.08

4.88

4.85

4.57

4.89

4.55

4.52

4.72

356.4

357.2

-Dec. 17

246,628

290,643

283,461

268,455

North

-Dec. 17

300,066

316,846

309,245

317,809

-Dec. 17

,94

South

401,194

(tons)-—,——.
Percentage of activity
Unfilled orders (tons) at end of period
PAINT AND

1949

ROUND-LOT

-Dec. 17

333,862

380,598

393,601

-Dec. 23

REPORTER PRICE

DRUG

AVERAGE

;

108.80

108.89

108.60

111.64

FOR

ACCOUNT

MEM¬

specialists in stocks in which registered—
purchases.:
Dec.

Total

Short

sales

Total

Other

COPPER

1,876,370
373,810

426,140

391,030

1,866,690

1,492,970

1,624,670

2,485,800

Refined

2,310,500

1,866,780

2,876,830

Deliveries

Other

560,760

32,000

24,210

367,560

241,740

268,350

273,740

509,960

Sales

the floor—

Dec.

763,140

628,230

688,970

994,610

Dec.

180,390

139,410

129,030

519,497

-Dec.

649,736

127,710
578,364

Dec.

830,126

706,074

658,907

3,601,500

2,824,490

2,956,480

Other sales
sales

911,388
,t

1,040,418

Total round-lot transactions for account of members—
Total

purchases

Short

Dec.

4,535,640

Dec.

Total sales

686,300

524,320

597,550

544,270

Dec.

Sales

Other sales

2,883,986

2,316,884
2,841,204

2,385,907
2,983,457

3,882,938

3,570,286

Dec.

4,427,208

LOT

DEALERS

EXCHANGE
Odd-lot

sales

Number

Dollar
Odd-lot

AND

—SECURITIES

EXCHANGE

STOCK

orders—Customers'

Customers'

short
other

1,651,053

1,220,513

1,432,734

1,997,723

$75,313,989

$58,889,290

$64,438,473

$103,254,885

Dec.

1,765,457

1,248,811

1,283,326

1,767,201

16,655

13,342

25,638

8,346

1,257,688
$57,868,032

sales)—

total sales

sales

Dec.

sales

Dec.

value

1,748,802

1,235,469

Dec.

;

$78,388,464

$56,643,563

1,758,855

$85,772,380

Round-lot sales by dealers—
Number

shares—Total sales

Short

Sales

Other

sales

Dec.

586,470

FOR

ACCOUNT

464,870

393,540

381,220

393~540

38iZ220

464870

382,720

526,670

707,850

Dec.

I_Dec.

586A 70

Round-lot purchases by dealers—Number of shares
Dec.
TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
Total

MEMBERS

468,600

Sales

Other

12,487,970

18,043.840

13,172,170

13,987,730

18,716,010

—•

DEPT.

948,130

684,200

___Dec.
"Dec.

PRICES, NEW SERIES

—

16,325,810

17,273,940

Meats

All

;
__

,—

commodities other than farm and foods__.

119.5

•119.4

119.6

118.8

Dec. 20

foods

—

88.8

*89.5

90.3

84.9

Dec. 20

'___

109.6

*109.4

108.9

110.6

Dec. 20

97.6

*97.2

'96.4

88.1

Dec. 20

127.9

*127.8

127.8

128.5

of Jan.

one-half cent

pound.

149,176

179,911

145,979

128,182

169,806,

8,357

tons)

20,612

9,492
61*3

tons)

;

—

OUTSTANDING—FED¬
J

YORK—

»-!?--

.,380,000

$1,365,000

$784,000

A.—

pounds)

2,000
of

110,816
149,277

*112,665

pounds).

2,000

151,497

28,061

37,299

fabricators—

(tons

2,000

pounds)

99,749

pounds)

STRUCTURAL

INSTITUTE

74,642

240,347

219,803

260,190

288,685

STEEL

83,626

113,417

313,623

180,772

(tons

__.

STEEL

93,451#

130,254

.__

copper stocks at end of period

2,000

(AMERI-.

CONSTRUC¬

TION)—Month of November:
Contracts

closed

Shipments

(tonnage)—estimated

INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS

THE

FEDERAL

RESERVE
* '

■

SYSTEM—1947-49=106—Month
Seasonally

Nov.:

adjusted

Unadjusted...

105

>___

CAPITAL

ISSUES

GREAT

THE

107

106 '

109

103
•

•

104

BRITAIN

(,029,000

£77,397,000

£34,773,000

$409.5

UNITED

*$409.5

$388.7

274.4

*274.8

260.8

STATES

OF
COMMERCE)—Month
(in billions):

of November

Total

personal income
Wage and salary receipts;

_y
total

;

Commodity producing industries
Manufacturing only
j.
Distributing industries—

86.5

and

professional

Farm

Rental

income

10.5

*36.1

35.1

*12.4

11.2

12.5

*14.1

13.8

27.6

24.5

30.4

30.0

28.2

9.2

9.3

7.9

393.0

payments

employees' contribution for

12.5

14.1

.__

income

*393.0

373.5

12.5

social

insurance

Total

46.0

11.3

107.0

27.6

persons

interest

Less

38.8

•49.4

12.4

Business

income—.

69.1

42.0

36.0

Government

Other labor

84.5

*72.5

42.2

*87.2

72.6

_•

*110.9

11.3

.-_

110.1

49.5

Service industries

nonagricultural income

TIN

THE

UNITED

MINES)—Month

STATES

Oct.

(in long tons):
Stocks

beginning

period

31,995

Receipts

38,620

Stocks

end

period

processed

32,830

•

Intercompany

scrap

Consumed

manufacturing

transactions

5,790

36,125

7,890
,

3,985

38,135

40,110

31,995
6,140

35,090

5,020

190

6,030

4,920

3,290
-

110

5,600

Primary

tSecondary

30,245

6,625

Supply
Total

•Revised figure, fllncludes 1,034,000 barrels of foreign crude runs.
§Based on new annual capacity of 148,570,970 tons
1, 1960 as against Jan. 1, 1959 basis of 147,633,670 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
as

(BUREAU
Dec. 20

products

Processed

(net

NEW

(tons

ONDARY

commodities

Farm

TIN—CONSUMPTION OF PRIMARY AND SEC¬

(1947-49 —100):

Commodity Group—
All

America

BANK

Transfer

672,170

853,050
13,134,680

Dec.

Total sales

LABOR

;___

Dividends

(SHARES):

sales

WHOLESALE

121

•

(000's omitted)___.

Personal

round-lot sales—

Short

(DEPARTMENT
Dec.

(customers'

(net

PAPER

PERSONAL INCOME IN

"Dec.

„

by dealers

MIDLAND BANK LTD.—Month of November

COMMISSION

value

Dollar

by dealers (customers' purchases)—t

purchases

Number

SPECIALISTS

336

(net

tons)

(tons

FABRICATED

NEW

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

154,336

development-

485,750

429,660

Refined
of

121

tons)

production

Crude

CAN

purchases

Total

257,340

22,800
245,550

Dec.

transactions initiated

Short

319.890

62,100

Dec.

sales

Total

427.470

Dec.

Copper

Dec.

Sales

Other 3&lea
Total

^,050,810

128

INSTITUTE—For month of Nov.:

Dec.

purchases

Short

2,980,270

120

__■

___

America

Nov.

2,410,890
443,810

transactions initiated off the floor—

Total

2,010,170

469

enterprises

Central

RESERVE

Dec.

604

and

(net

COMMERCIAL

Dec.

Sales

Other sales

114

systems—

_______

and

Tor Asia /(net

138

exports of Pennsylvania anthracite (net

ERAL

TRANSACTIONS

124

("BUREAU OF MINES)—

Undesignated

INDEX—

100

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

tons)

Production

OIL,

542

public

Europe

___

October:—

374.8

NATIONAL PAPERROARD ASSOCIATION:

(tons)

other

Month

-Dec. 27

MOODY'S COMMODITY INDEX

Orders received

All

COAL EXPORTS

187

:__L.

buildings

...

Conservation

325

34
266

_______

water

service

and

____.

Public

5.08

4.57

-Dec. 27

——

442

1,234
'v

institutional

Water

238

and

Sewer

5.30

-Dec. 27

—

Group—

Sewer

4.90

5.10

-Dec. 27

Group

4.67

4.65

1,580

403

_______

349

___

—:

Military facilities
Highways :

4.55

4.72

..Dec. 27
Utilities

3.92

4.35
>

-Dec. 27

Baa

3.86

436

107

393

____

buildings

and

500

•"

Industrial

81.29

112

1,427

buildings

81.29

85.98

107

371

construction

84.17

3.81

..Dec. 27

Public

463

___,

Other nonresidential

-Dec. 27

and

88.13

-Dec. 27

—

Railroad

83.66

104

public

87.86

-Dec. 27

Aaa

Industrials

All

YIELD DAILY AVERAGES:

Government

Average

81.05

83.79

-Dec. 27

Public Utilities Group

Industrials

81.29

-Dec. 27

Group

85.85

-Dec. 27

—

88.67

-Dec. 27
-Dec. 27

z—z

a
Baa

telegraph
utilities—
other private

Other

55
51

recreational

utilities

,87.73

construction

100.625c

167

■____

institutional-'.—

and

-Dec. 21

Government Bonds

Hospital

-Dec. 27

MOODY'S BOND PRICES DAILY AVERAGES:

—

3,760

2,270

100

2,310

2,270

2,650

Number 6016

192

Volume

The Commercial and Financial Chronicle

STATE OF TRADE AND INDUSTRY
utilization of the Jan. 1,
annual capacity of 148,570,-

Continued from page 4

of the

commitments before

cover

ex-

(2703)

corresponding

week

1959

and

decrease of 85,088 cars or 14.9%

below the corresponding

week in

1958.

Loadings in the week of Dec. 17,
which
were
affected
by heavy

970 net tons. Estimated percentage of this weeks forecast based snow in the Central-Eastern and
on that capacity is 39.4%.
North-Eastern sections, were 31,scrap have pushed prices up $1 a
A month ago the operating rate 594 cars or 6.1% below the pre¬
ton on a number of leading grades
(based on 1947-49 weekly pro- ceding week.
in Chicago.
'
duction) was *86.7% and producThere were 10,937 cars reported
Domestic prices on No. 2 heavy tion 1,393,000 tons.
A year ago loaded with one or more revenue
melting steel and No. 2 bundles the actual weekly production was highway trailers (piggyback) in
have advanced $1 in Philadelphia, placed at 2,728,000 tons or *169.7%. the
week
ended
Dec.
10, 1960
pected January rise in steelmaking generates market strength.
Small purchases of steelmaking

San

Francisco, the Japanese
are reported paying $4 to $5 a ton
above
domestic
prices for
top
grade steel scrap.

"^ex

production is based on
weekly production for 1947-49.

age

Steel's

price

scrap ;

composite

this week shows its first rise since

It was up 33 cents to $29
ton for No. 1 heavy melt-

August.
a

gross

ing gradev

week's

steelworks

46.9%

percentage

opera-

capacity,
below the

points

previous week's revised rate. Output was about 1,335,000 ingot tons,
a

low for the year.

new

„

No Real Upturn in Steel Industry

Likely

Until March

The end

1961

1960 should

the

shakeout of the steel market

com-

pleted, the Iron Age reports. This
means that with the start of 1961,
.the industry will be free of artificial

factors

the

market,

and

activity.

For this

statistical

The

service said

cember U. S. car

units, 7.0%
uled

523,000

below 562,400 sched-

the month opened.

the

estimated

•slowdown.
disclose

And

the

could

month

idea

some

business

the
of

the

date

of the upturn.

Ward's said.
mixed

be;

January will
improvement
from
the

shakeout month of December.

how

much

January

the

outlook

eral turns within the

erate rise in

sev-

past 10 days.
mod-

activity, the Iron Age

magazinb

.be difficult to

trends

cautions

measure

the

indexes

'which

will

ob-

until

American Mron

Steel

and

The familiar
measured

Insti-

operating rate,

output

per

cent of

discontinued after the first of the

industry capacity, will be

pattern of three-andwork
schedules
pre-

Instead,

current

industry. The weekly
-.operating forecast will no longer
be issued.
s \ V
Commenting oq the rapid shifts
,in the January outlook, The Iron
;

forecasts

some

■

Ward's said that while auto in-

dustry's

officials

sales

peg

1961 at the 1960 level of 6,600,000

of their

some

economists,

by severe winter weather
pull the purchasing rate be-

low the Dec. 1-10 level.
Ward's said Mercury St. Louis
plant workers face a three-week
downtime in January as Mercury
production is discontinued- there
and replaced by output of the

standard-size Ford.

Then, *-

week,

days

ago

automotive "cutbacks

.clouded

weeks

the

building

preceding

immediately

the

than the 1,830,038 in entire 1955,

the

car

ders

Dodge also set

the

gave

downs

industry

shortened.

better

scheduled

Some
were

shut-

even

canceled

considered about 60% of capacity,
is not likely until March.
*

se-?

The

erating

American

tion

and

that

Steel

the

op-

rate

average

1947-49).
These figures
compared with the actual levels
of

the
•

Iron

announced

of steel companies
*69.8% of steel capacity for the week beginning
Dec. 26,
equivalent to 1,122,000
tons in ingot and steel
castings
(based on average weekly producwill

*82.5%
week

and

1,325,000

tons

beginning Dec. 19.

Actual output for last week beginning Dec. 19 is equal to 46.5%
*

Motors, Cadillac and
new

company rec-

ords this year, Ward's said,

Electric Output 13.2% Higher
Than in 1959 Week
The

amount

distributed

below

production;

ders were 5.1%

Compared

new

or¬

below production.

with

the

week ended Dec. 10,

1960, produc¬
tion of reporting mills was 0.7%

below; shipments were 0.2% be¬
low;
new
orders
were
16.3%
below. Compared with the corre¬
sponding week in 1959, produc¬
tion of reporting mills was 18.8%
below; shipments were 13% be¬
low; and new orders were 29.7%
below.

Pre-Christmas

Dip

Business

Failures

With
from

the

down

number

week

earlier

to 253

351,

pound

Inc.,

raw

foodstuffs

showed

the

week

ended

the

usual

pre-Christmas decline,

but the total
the 195 of
&

was

Dec.

noticeably above

year ago,

electric

reports Dun

Bradstreet, Inc. Casualties were

15,114,000,000

kwh.,

according to the Edison Electric
institute.
kwh.

Output

above

that

week's total of
and showed

93,000,000

was

the

15,021,000,000 kwh.

gain of 1,765,000,000
kwh., or 13.2% above that of the
comparable 1959 week.
a

Freight Car Loadings Down 21.0%
Below Corresponding 1959 Week
Loading of
the

week

totaled

tion

486,059

This

cars

17, 1960,
the Associa-

cars,

was

freight for

Railroads
a

21%

an-

decrease

below

the

modity
in

the

latest

Wholesale

general

week.

The

Daily
In¬

Commodity Price

dex, compiled by Dun & Brad¬
street, Inc., stood at 263.78 (193032=100) on Dec. 19, compared
with

264.29

275.00
a

year

week .earlier

and

the corresponding

date

ago.

Increased
wheat

this

declines

export
week

buying of
offset by
trading and

slackened.
on

gains this week in ap¬
parel, gifts, small electrical house¬

linens,'and new passenger
offset declines in major appli¬

wares,
cars

floor
draperies.

the New York Cotton

in all of the five broad in¬

dustry and trade groups, with the
most
noticeable
dip among re¬
tailers, down to 117 from 162, and
in
manufacturing, down to 45
from 72.
Mortality exceeded the
comparable 1959 levels in all of
the groups, with the sharpest in¬
creases in retailing and construc¬
tion.

Bradstreet, Inc. Regional esti¬

mates varied from the comparable
1959 levels by the following

per¬

centages: Middle Atlantic +3 to
+7; New England and East South
Central +2 to -f 6; East North
Central, West North Central, and
South Atlantic +1 to
+5; West
South
—3

Central

the

Department

show

period

decreases

For

year.

Dec.

the

decrease

of 1% was reported. For the four

weeks ended Dec. 17

a 3% decline
reported. The Jan. 1 to Dec.
period showed a 1% increase.

According
serve

sales

the

System,
New

Federal

week ended Dec. 17 showed

decrease

Re¬

department store
York City for the

below

the

same

12%

period

last

year. In the preceding week
ended Dec. 10 sales increased 1%

from the

same

week

decline

the

1959

reported

was

period,

to Dec.

and

there

the

above

New York

from

was

below
Jan.

gain of
achieved in

level

the 1959 period.

exports
totaled
about
1,536,000
bales, compared with 1,644,000 in

in 1959. For

ending Dec. 17

the

corresponding period

year

ago.

Homans
Homans

New

Admit

Co.,

BroadWay,

City, members of the

York

Stock

Exchange,

Jan. 5 will admit Richard J. McMullin to partnership. Mr. McMul-

Upsurge in Christmas Shopping

Following the snowstorm that
cut sharply into consumer buying
in

the

Northeast

week

Christmas

shopping
the

ended

New

the

York

week

tail

ago.

trade

whole

the

country

moderately

over

re¬

year

Many storekeepers still feel,
that

they

DIVIDEND

this

Wednesday boosting over-all

make

will be

un¬

for the losses

DIVIDEND

NOTICE

NOTICES

CITY INVESTING COMPANY
25 Broad

Street, New York 4, NA Y.

The Board of Directors of this company
on
December
20,
1960 declared
the
regular quarterly dividend of 12 V2 cents
per share

Stock

member of the

Stock Exchange as of

date.

same

earlier,
picked
up

sharply in

lin will become

the outstanding

Common

the company, payable Febru¬
1961 to stockholders of record
at the close of business on January 16,
*961.
HAZEL T. BOWERS, Secretary.
of

ary

□ LEVI

WOOOALL jNUtSTHIES |NC.

]

CORPORATION
CLEVELAND 10.0HI0

paying

cents

dividend of 30

a common

December 28. This is the

company's 154th consecu¬
tive

The regular

304

Stock

quarterly dividend of

per

been

has

the

Common

declared

January 16, 1961,

payable

stockholders

of record January 3,196L

M. E. GRIFFIN,

quartpjly dividend.

Secretary-Treasurer

FEDERAL

region, down
6Min the East North

Pacific

and

Middle

Atlantic

The year-to-year

declines,
which were slight, occurred in the
East South Central, West South
Central, and Mountain regions.
Wholesale

Food

Price

Index

Edges Up in Latest Week
Wholesale

Food

Price

FEDERAL PAPER BOARD CO., Inc.
Common & Preferred Dividends:
The

Board

of Directors

Federal

Paper Board Company, Inc. has this
day declared the following quarterly
dividends:

share on Common Stock,
283A< per share on the 4.6%
504 per

NEWS
AT

CLEVITE:

Cumulative Preferred Stock.
Common Stock dividends

We are now

al other
duce

licensing sever¬

companies to

our new

pro¬

piezoelectric

materials and make devices

which directly convert
In¬

mechanical energy to elec-

compiled by Dun & Bradstreet, Inc., edged up fractionally
this week from the prior period

trical energy and vice versa.

dex,

was

The most ap¬
occurred in

to 43 from
73, and in the West South Cen¬
tral States, down to 9 from 28.
In the six of the nine major re¬
gions, more businesses failed than
in the similar week last year, with
the most appreciable increases in

The

Atlantic

from

States.

last

ended

week

last

sales

decrease of 4% below the

Tuesday amounted to about 272,000 bales, compared with 109,000
a week earlier and
137,000 in the
comparable week last„ year. For
the season through Dec. 13, cotton

Central region,, down

the

store

cotton

ended

Cpast

country-wide basis as taken from
the Federal Reserve Board's index
for the week ended Dec.
17, 1960,

the four weeks

week

Pacific

Nationwide Department Store"
Sales Down 4% from 1959 Week

nine

South
16

and

to—1; Mountain -Hi to 0,

Exchange
finished
the
week
slightly higher than a week ear¬
lier, with most gains posted at
the end of the period, Exports of
in. the

and

Wednesday ranged from 1 to 5%
higher than a year ago, according
to spot estimates collected
by Dun

regions, only the
New England and Pacific States
reported increases from the prior

the

coverings,

The total dollar volume of re¬
tail trade in the week ended this

was

domestic

prices were down moderately, de¬
spite light receipts. Despite rela¬
tively limited supplies, rye prices
dipped somewhat as buying
Prices

to-year

43.

Failures declined from the prior

the

price level drifted lower

able

week

show

Reflecting lower prices on some
grains, flour, hogs, rubber, and
tin, the general wholesale com¬

period.
The number of
businesses failing with liabilities
in excess of $100,000 came to 21,
down
sharply from the week
ceding

earlier

Wholesale Commodity Price Index
Drifts Downward in Latest Week

however,

Dec.

American

nbunced.

129,274

revenue

ended

fell to 30 from the 46 of the pre¬

preciable

energy

general use. It is not
cost-of-living index. Its chief

com¬

industrial failures in

mercial and

week in casualties.

the electric light
and power industry for the week
ended Saturday, Dec. 24, was es-

timated

On
.On 39.4% of Jan. 1
1, 1960 Capacity

Institute

American

January cannot - be
called a recovery month.
Any real
upturn, that is, to what is now

However,

year

its peak period,

feeling..
4

1,846,000th

the

But

Christmas holiday, some new life
in terms of a flurry of small or:

its

picture.

0.2%

were

brisk improvement was expected,

two

Barometer

while

Highlighting the industry's
year-end, Chevrolet set a new alltime high production mark this

that

says

Trade

slightly
above
the comparable
realistic
prewar toll of 249 in 1939.
not quite as
Liabilities
of
$5,000
or
more
optimistic, are still strong on the
were involved in 223 of the week's
coming auto market,
Ward's said Dec. 11-20 auto casualties, compared with 305 in
the prior week and 176 last year.
sales can • be expected to reflecF
losses under $5,000
seasonal factors which accentu- Those with

cars,

may

sued by the

American

Sales and production in any
single year either closely compare or eminently vary and one
should not be taken to directly
indicate the other.

set of indexes based

'on
the
1957-59
period, weekly
/tonnage figures; and year-to-date
.'totals and comparisons will be is-

Age

Week

sales.

ated

and

5,800,000 car output
for next year vs. 6,700,000 in 1960,
a
decline of 13%, should not be
taken to mean a 13% falloff in

'year.

Bradstreet,

0.2%

shipments of 446 mills
reporting to the National Lumber

2.6%

idled,

quarters

immediate

industry

and tonnage figures
released by
the

will

which

become familiar with the

.servers

•tute.

The

taken

•

The

new

Just

question.
has

But the best evaluation is

<says.

that

it stands now,

t>As

Lumber

same

plants will work 3 to 3% days
in
keeping
with
the
year-end
holidays.
t'
Ward's, meanwhile, emphasized

indications

depth

Shipments

Above Production for Dec. 17

are

the

real

per

time, leading car ended Dec.
trimming their Janu- week, new
ary assemblies approximately 10%
were 5.6% below production. Un¬
below previous plan, pulling out- filled
orders
of reporting mills
Put prospects for the month down amounted to 25% of gross stocks.
towards
the
523,000
December For reporting softwood mills, un¬
level
filled orders were equivalent to
Reflecting
the
long
holiday 14 days' production at the current
weekend but also scheduling adrate, and gross stocks were equiv¬
justment, car building fell to 113,- alent to 52 days' production.
*416 units this week, a 13.2% deFor the year-to-date, shipments
cline
from
130,711
last
week, of reporting identical mills were
makers

Motors Corp. and some GM Corp.

first

Dun

was

This

during the week
17, 1960. In the same
orders of these mills

supply

•extent

The

that

above production

of-the-year

Lumber

De-

output has been

will

•the

and lambs.

trend of food prices at the whole¬
sale level.

four-day

will

eggs

incurred by the snowstorm. Year-

ances,

the 1958 week.

output will have more than
usual importance. After-the-first-

activity

this

function

January orders^vailed this week. Next week the
bulk of Chrysler Corp. assemblies

reason,

and

cost

wholesale

wheat, corn, oats, bar¬
ley,
potatoes,
raisins,
prunes,
steers, and hogs. Lower in price
were flour,
butter, coffee, cocoa,
were

1959 and 4,498 cars or 69.9% above

industry is cutting its
production schedules to keep inventories
in
line
with
sales,

will reflect the true level of business

ago

Wholesale Food Price Index rep¬
resents the sum total of the price

see

year

Leading Car Makers Are
The auto

pruned

were

the

Trimming Their Production

this month.
Last

total).

week

than

and meats in

Ward's Automotive Reports said,

1.8

over-all

7.7% higher
$5.73.
Higher in

increase of 2,307 cars or 26.7%
above the corresponding week of

The composite has declined from an average of $41.92
a
ton in January to $28.84 a ton

tions

included

were

appreciably exceeded that of

the similar period a year ago. On
Dec. 20 it stood at
$6.17, up 0.3%
from the week earlier $6.15 and

aver-

(which

and

are

payable

1961 to stockholders of
the close of business Decem¬

January 14,
record

ber 29, I960.
Dividends

on
the 4.6% Cumulative
#25 par value Preferred Stock are pay¬
able March 15, 1961 to stockholders
of record February 28, 1961.

Rqb^rt A. Wallace
Vice President and Secretary
December 13, I960

Bogota, New Jersey

«jLa

The Commercial and Financial Chronicle

(2704)

Thursday, December 29, 1960

Office,

Printing

WASHINGTON AND

Renewal Areas

sity of Connecticut—Small Busi¬
Administration, 42 Broadway,

ness

New York 4,

New
to

Frontier

stake

claims

its

out

tion

C. — The
getting ready-

decent

Palm

from

Word

Nation's

Beach

hopeful of putting its philosophy
in action, as soon as possible in

Before
of

executive

the

branch

Government

Federal

87th

the

Congress.

The

Investor's

active

Administration

the

Ke nnedy
Administration, a
round of ceremonies will take

place.

For

weeks

now

staff

ceremony.

inaugural parade is ;
going to take place after John
iF.

Kennedy takes

oath

the

lot

the 35th President of the United

States. The parade will be down

$7.50.

Mr.

now

"mass along this ceremonial mile

forests,

using

land

-President,
dent,

retiring

the

former

and

Herbert

Hoover

Truman,

who

participate.
in

ments

the

cheer

new

Presi-

„r

Presidents

and

Harry

S.,

scheduled to

are

Some

great

our

minerals,

our

mo¬

the

next few

have taken place along this old

technological employment.
of the things

of the

one

original 13 states.

about

tax

exemptions—he's

loaded

with

from

the

have

wars

suggesting

deal

with

Pennsylvania'

along

has

women—

said, and rightfully

so,

Suffragettes of 1913—have
paraded along the avenue while

that

they,

cheered

were

the

ment

there

registered

than

are

voters

women

registered

President-elect

With

having
in

Christmas

its

people
are
already worrying about the Jan.
20 weather.
However, as has
been the case down through the
many

to live there

serious

problem,

Minimum

sand

shovels

and

raised

that

trucks.

provisions

hour law
An Active President

$1.25

Kennedy
already has his speech in mind
before he officially moves into

cratic

raise the wage

ap¬

parently is going to have a very
active

tenure

the

White

House because he will be faced
with

problems,

many

which

course

peared

some

the horizon.

have

not

ap¬

Mr. Kennedy will not be able
to get everything he wants from

Congress. That is

for

the

himself

Legislation

and

good

thing
country.-

usually

com-'

promise among various leaders
and

views

theories

and

generally.
Mr. Kennedy in his

cisco

Saturday,
Fran¬

International

summed up

projected

Airport
the philosophy and

aims

the

New

Frontier Administration

as well,
better, than in most of
stump speeches across the

not

his

nation. It

was

at this

rally that
the
official
beginning of the
1960 Presidential campaign was
kicked-off.
He said

j.a,

$1.15

that day that until

Democrat occupied the White

House, the Republicans
would

block

minimum

water

wage,"

down

the aged; play

can

"adequate

they

medical

and

would

care

for

politics with civil

rights and "they

can

block

ac¬

Congress
that much.

the

$1.25

are

members of

raised 25 cents

will have the

of what

hour,

opposite effect

increase would be de¬

signed to do. There is the pos¬
sibility that it would increase
unemployment.
r
The United States Chamber of
Commerce

few

days

letter

box manufacturer in

Mich.,

purporting

ago
a

tell

what

would happen to his business

pass

than

visitors who toss

them

popcorn to
the grounds.

views.]

socializing

Kennedy
took

Adminis¬

place

during

President

Eisenhower's occupancy.

President

Eisenhower

BOOKSHELF

likes

more.

inflation

the
other

-which is
a

customers

York

Agencies

form

consequence,

Mining:

Its

Manufacturing
Formation

nancing—Daniel
P.

and

Fi¬

and

Creamer,

Sergei

Dobrovolsky, and Israel Boren-

stein—Princeton University Press,

Princeton, N. J.

(cloth), $7.50.

Economic

Indicators
December,
Superintendent of Docu¬
ments, U. S. Government Printing
I960

—-

Office, Washington 25, D. C., 200
copy;

$2 per year.

Republic of the Ivory Coast—The

land, the people and the economy
—French Embassy, Press and In¬
formation Service, 972 Fifth Ave.,
New York, N. Y. (paper).

Financing

people

and

orders

reduce

our

Many older

marginal

would be forced out of

"It

compete

almost

with

impossible

Princeton

University Press, Princeton, N. J.
(cloth), $9.
:
•.
,

Stock

phisticated
Crane

Profits for

Market
,

Investor

Album, of

—

the

So¬

Burton

three

records

narrated by the. author—Including
discussion of how to handle the

day-to-day tactics of the specula¬
market, how to pick likely

tive

stocks

measure their
growth
etc.,
with
stock
and
trend charts explained—AM-PAR

and

Century—"Studies in

Education, Inc., Irvington
Hudson, N. Y. (paper), 50 cents.

Future

of; Industrial

Income

and

Wealth," Vol. 24—A

Report of the National Bureau of

Ma¬

Economic Research—Princeton

he and

terials in North America—Wilbur

Mrs. Eisenhower moved into the

G. Fritz—National Planning As¬
sociation, 1606 New Hampshire
Ave., N. W., Washington 9, D. C.

University Press, Princeton, N.' J.
(cloth), $15. '
'' *

the White House. When

mansion in

first
as

time

since

young ;

and

1953, it marked the

Mrs.

1916

Army

Eisenhower

year-old bride,

dozen?

he,

lieutenant
as

19-

(paper), $2.00

tinuance of Nuclear Weapon Tests

length of time.

—Reprinted from Department of

they

had

moved

times.

State

World's

Telephones

statistics

for

cities

and

Geneva Conference«on the Discon¬

had really had

home for any

Previously

when

Raw

Relations

—

principal
the

Telephone
countries

world

Public

—

Department, American
Telephone & Telegraph Co., 195
Broadway, New York 7, N. Y.

Bulletin—Superintendent of

Documents,

Attention Brokers and Dealers:

Government

TRADING

MARKETS

American Cement
"

Botany Industries V"';
W. L. Maxson

Official Films

Waste

Carl Marks
FOREIGN

Our New

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HUbbard

foreign

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1900 —W.

—

potential,

nomic

workers

jobs.

Since

Hickman

Freeman, December
I960—Con¬
taining articles on Monetary Records, Inc., 1501 Broadway, New
Crossroads, Economic Growth: York 36, N. Y., $10 per set.
Reality and Mirage; United Na¬ Trends in the American Economy
tions; etc.—Foundation for Eco¬ in the 19th

20 BROAD STREET

working force.

York

packaging
lose

Enforce¬

—

West
Street, New York 7, N. Y. (paper).

and

less expensive and, as

and in turn have to

Law

Telephone and
directory—Public Rela¬

teletype

turn

7105—*

State

New

unemployment. When the cost
of packages such as our indus¬
try makes, reaches a certain

point,

Publication

Statistical Measures

"We believe this will be very
detrimental to our industry and
cause

State

ment

Bond

Capital

Documents,
U. S. Government Printing Office,
Washington 25, D. C. (paper), 150.

the wage is raised:

will

Trade

1934

Extended—Depart¬

Superintendent

Braddock

on
•

the

tions
Department,
New
Telephone. Company,
140

per

guessing

the

the past four years of

re¬

paper

St. Joseph,

they

the

from

own

the forest

and

during

Congress who hon¬
estly feel that if the minimum

wage is

grazed

grounds, but
changed now. To¬

stream' of

tration

conservative

some

re¬

House

considerably

There

Abi-

belonging

cow

Incidentally,

hour.

the "Chronicle's"

the

Washington is that there will be

are

First Lady

executive

have

peanuts

will
The

hour, but chances

he will not get

some

cover

controlled

printed

Sept. 3 speech at the San

persons.

law-makers might go as high as

opposing groups who have

different

wage^

mum
wage increased, but it is
highly doubtful that the Demo-'

the White House later that day.

President-elect

the

Thirty-

of elms,
magnolias, beeches, and other
trees, only the squirrels, birds
and pigeons feed on the lovely
grounds. Certainly the squirrels
and the pigeons are well fed by

Perhaps he will get the mini-'

The

young

chief
White

day among

hour, and

extended

several million

President-elect

intended

President John

was

milk

the

times

\yage Legislation

Mr. Kennedy

is strongly advo¬
cating that the minimum wage

for

fine

the

the country;

tion

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with

1600

gail.

scattered

years,
elaborate
preparations
have been made for quick ac¬

getting

During the Administration of
President William Howard Taft,
•

sections of

column

are,

again.

The first family

Adams and his
»•

the affected

lived

have

Mansion itself.

employees. The growing num-;
ber of unemployed is already a

continuous below freezing tem¬

peratures,

hardship

families

two
-

move

Kennedy

his

family live
Pennsylvania Avenue.

Kennedy be-;
government

the

President-elect

while

automa¬

companies planning to con¬
to new machinery without

undue

result of, the Dec. 11
snowfall, and almost

ahead, Washington is ex¬
pecting an interesting period"

vert

many

years as a
and

loom

should offer technical assistance;

Washington

white

t hat

[This

House

they

now

ready to

White

and

lieves

male voters.

first

power

And

struc-

wage

Despite all the problems that

govern¬

tion.

in the 1920 Presidential election.
Now

and

of delving into the

purpose

productive

first time

voted for the

women

conference

union

industrial,

booed.
of those

and

Seven years later some

level

top

present

our

ture."
The

ment officials should be held for

the

Act

Amended and

Avenue. Thousands of

Under

Agreements

this« problem.

ramifications

Loan

Y., (on request).

Negotiations

Heroes

inarched

Free

—

New York 22, N.

nicipals and his wife just had triplets!"

conference

year.

Modern Talking Pic¬
Service, Inc., 3 East 54th St.,

ture

mu¬

lying ahead for the

President

new

films

cal

"Talk

One

Avenue, named in honor of

Catalog

Technical Films—Guide to techni¬

with

dnrir.

■.

111.; $6.00 per

cago,

automation
is
threatening millions of persons
years

our

Modern

Apparently

history

country's

Pub¬

nancial

polluting our streams, deplet¬
ing our fisheries and requiring
new
homes, new schools, more
roads and hospitals.

half

produced

more,

ment;, Commercial Banks and Fi¬
Intermediaries;
etc.
—
University of Chicago Press, Chi¬

twice the

nearly

taking

timber

Political
Economy,
1960—Containing articles
on Government Efficiency and the
Military
"Buyer-Seller" Device;
Local
Independent and National
Unions; Application
of Leibenstein's
Theory of Underemploy¬

They will be us¬

by 1980.

years

Intelligence

October

Kennedy

ing 600 billion gallons of water

daily,

Many thousands of people will

for

■

Journal

once
pointed out in another
campagin address, there will be
more
than
230,000,000 Ameri¬
cans

Pennsylvania Avenue from the
Capitol to the White House. V ;

And

before.

records,
trading
consecutive

Corporation, 2 East Ave.,
Larchmont, N. Y. (leather bound),

;

done.

—

lishing

Every day there are some 7,000
more
Americans than the day

big

dividends

etc/—Investors

There

has been preparing for a mighty

Almanac

with

stocks

terms;

one.

Automation and Employment

and

Diary

permanent
investment
including
glossary
of

nedy Administration will be an

hower

In¬

Diary designed to keep daily and

Ken¬

changes hands from the Eisen¬

—

Washington indicates that the
New Frontier Administration is

eight.

Newsletter

Service

India, Em¬
bassy of India, 2107 Massachu¬
setts Ave., N. W., Washington 8,

and

Capital for the next
four years at least, and possibly

;

formation

bill

school bill."

and a good

the;

housing

N. Y.,(paper).

Economic

India

WASHINGTON,

Small Business

•—Study prepared by the Univer¬

from the nation's capital

•

25,

Impact of Dislocation from Urban

behind-the-scenes interpretations

Washington

(paper), 200.

S5-t990;>

''Teletype'

\ '
-

f **

•

BS 69

Full text of Commercial and Financial Chronicle : December 29, 1960, Vol. 192, No. 6016

FRASER