Full text of Commercial and Financial Chronicle : December 8, 1960, Vol. 192, No. 6010

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and FINANCIAL

ESTABLISHED

1839

Reg. U. S. Pat. Office

Volume

192

<

Number

6010

New York 7, N. Y.,

AS WE SEE IT

Editorial

President-elect, just through with a campaign when
he was (probably had to be)
chiefly concerned with the
hard realities of politics, now faces the task of
dealing
wTith the hard realities of life, or some of them. He is
quoted as having said that he entered the Presidential
contest with quite definite ideas about what we as a

And Issues

perhaps

they

chooses

are

growing
family with

now

official

an

the

was on

By Kenneth Ward,* Partner, Hayden, Stone & Co.,
City, Members New York Stock Exchange

always
hustings, but

concrete

more

which,

and

Market

Expects year-end rally carrying to 625-635

through

with

!which, he must work for the next four
cabinet

selection

Ribicoff,

as

and

of

one

made

known

years. The first
that of Abraham

was

was

that of David E. Bell

as

based
Lists

in

a

new

have

to

be

altered

in

the

on

broadcasting.

rally
high of 685

year-end

a

new

Dow-Jones

Industrials

^

these

actual

are

-Similar Problems Elsewhere

~

But the

same

other bottom and
be reminded

(Continued

on page

26)

SECURITIES

U. S.

afforded

are

October, many leading stocks
more than 50%.
Be reminded also
serious bear market has ever taken
place
with the odd-lot short
selling figures at their
have
that

dropped

no

high¬
and especially with gen¬
skepticism and bearishness so pronounced as
they have been for the past several months. Inci¬
in almost two
years,

est

eral

a

vailed

in

1956

and

more

and

more

a

Housing,

Kenneth Ward

performed

buying opportunity. We should

BANK LIMITED
Head

Office:

'1?

the

average itself.
Referring to the
August to October in 1956, the Dow
averages were off 13%, but the aircraft stocks were
up substantially.
In 1957, the Dow Industrials
were off 20% during the
(Continued on page 23)

setback from

■U

Section, starting

on

page

State,

Municipal

32.

Housing

STATE

AND

MUNICIPAL

Lester, Ryons
623

So.

54 PARLIAMENT
13

to

the

BONDS

STREET, S.W.L

Members Pacific Coast

Branches

INDIA,

in:

Co.

Exchange

Offices

in Claremont, Corona del
Mar,
Encino, Glendale, Hollywood, Lony Beach,
Oceanside, Pasadena, Pomona, Redlands,

Government in: ADEN,

KENYA, UGANDA, ZANZIBAR

COMPANY

&

Street, Los Angeles 17,

Members New York Stock Exchange
Associate Member American Stock
Exchange

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

Bankers

Hope

Agency
Bonds and

California

Branches

London

HAnover 2-3700

NEW YORK

was

complete picture of issues now registered with the SEC and poten¬

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

TRUST

market

recently, is the fact that while the Dow-Jones
Industrials fell 122 points this year, seven of its 30
components actually advanced, and 16 of them out¬

NATIONAL AND GRINDLAYS

Municipal

CHEMICAL BANK

the

and Public

Securities
telephone:

that

Further

Government,

State and

convinced

ready to collapse even further, the exact opposite
took place.
What most people think will
happen,
usually doesn't happen, and when uncertainty is
greatest and prevents them from buying, then it

been

too, that the oil, steel, paper, airline,

tial .undertakings in our "Securities in Registration"

Public

same bearish
psychology pre¬
1957, with the bears becoming

high, which was 520 on the Dow Indus¬
illustrating how completely con¬
trary this entire crazy-quilt market pattern has

when the market is approaching an¬

as

slowly

represent

to the recent low in

REGISTRATION—Underwriters, dealers and investors in corporate

NOW IN

securities

bearish

are

their 1957

the general news background are seldom

will

as

to

unusually
It should
also be
pointed out that, although the Dow Industrials have
declined only about 17% from last
January's high

trials.

ever

everything is never completely
black and that public psychol¬
ogy and

pictures

appear

the Big Board stocks were then
selling below their
1946 peaks, or the equivalent of about 213
on the
Dow
Industrials, and even right now about 40%
of the stocks on the
Big Board are selling below

sinking spells
related with the expand¬
numerous

his party has been particularly specific about what they
favor in the form of an agricultural program, but there

wailing and gnashing of

stocks now
attractive values.
many

Importance of Selectivity

changing
international
news.
Nevertheless, it is important
that we be reminded today that

type of problem will face many of the
other appointments to places of responsibility in the
Kennedy Administration. Neither the President-elect nor

be

and the technical and statistical

improving,

Although the Dow Industrial average reached
that all-time high of
685, strangely enough 30% of

ing selling pressure and the
depressing nature of over-all

'[

y

Copy

a

usually is the time to make profitable "purchases.

January, the market has
been slowly declining, but on
a
very rotating basis, for the
past 12 months. Increased bearishness and pessimism during

domestic business and the
-•

(the

last

reputed to be the plans of the new
to be realized in any substantial degree.

are

electronics

Samuel

were

practice if what

aircrafts,

growth industry), finance companies,
oils, paper, rubber and tires, tobacco,

coppers,

Except for
carrying to a

by the incoming regime. If it is not remade
figures that are handed to the
will

Cents

copper, aluminum, rubber, rail and other
groups,
plus many individual stocks, have been
declining
for the better part of two
years. Since a great deal
of this liquidation seems to have
been overdone

dentally, when the

Administration, but it will doubtless be

Administration

chemicals,

one

Johnson, the eminent Englishman of
letters, once observed that, "People need to be
reminded more than they need to be instructed."
This certainly applies to many investors today.

technical sense, the

regime

aluminum,

and
Dr.

forthcoming budget will technically be the work of

re-tailored

of

number

foods,

of the ideas

the Eisenhower

per¬

attractive, specific issues in following industries:

as

airlines,

Budget

expressed by candidate Ken¬
nedy seemed definitely to imply very substantial in¬
creases in Federal
outlays in the field of health and ed¬
ucation. Now the problem is how to do any such
thing
and keep the budget in balance without additional taxes.
It is not known whether these problems were discussed
with Messrs. Ribicoff and Bell, but they will have to be
and they will not
yield to any easy solution. Of course,
the

Cites drastically irregular

individual issues as buttressing
urgency of
Stresses importance of concentrating on valueportfolio decisions in current "rotating" market.

nation's

some

holding.

DJI Average,

on

selectivity.

Director.
Now

580-585 floor

formance

Secretary of Health, Education and Welfare,
the early announced choices for
key posts

outside of the cabinet

analyst, maintaining that much of recent liquidation

has been overdone, asserts many issues are now attractive.

he

as

50

Currently Attractive

New York

nation should do in the Sixties. His ideas did not

quite definite when he

Price

Outlook for the Stock Market—

The

appear

Thursday, December 8, 1960

/,)?

Notes

if

•

Bond

Department

M
>ti

')!

THE

j

•I
•

'i

Riverside, San Diego, Santa Ana,
Santa Monica, Whittier

THE FIRST NATIONAL CITY BANK

PAKISTAN, CEYLON, BURMA,

*

11 K

BOND DEPARTMENT

KENYA,

30 Broad Street

UGANDA,

New York 15

TANGANYIKA, ZANZIBAR,

ADEN,

NORTHERN

OF NEW YORK

AND

SOUTHERN

RHODESIA

on

Southern

California Securities

Bond Dept.

Teletype: NY 1-708

Net Active
To Dealers,

ft"*

Markets

UNDERWRITER

DISTRIBUTOR

„Inquiries Invited

SOMALI REPUBLIC,
New York

Correspondent

—

Pert king £ <J»

MANHATTAN
BANK

HAnover 2-6000

Maintained

\

;i i
'

Banks

and

|

Brokers

canadian

CANADIAN

securities

.i

BONDS & STOCKS

T. L.Watson & Co.

\

I

1

f
\

ESTABLISHED 1832

DBALBR

Members

Block

New York Stock

FIRST

American

Exchange

Inquiries Invited

Commission Orders Executed On All
Canadian

Stock Exchange

MUNICIPAL.

Exchanges

<£outhu>edt
COMPANY




Teletype NY 1-2270
25

BROAD STREET

NEW YORK 4,

N. Y.

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody & Co.

CIVIC

Dominion Securities
Grporation

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

•

PERTH AMBOT

BONDS

'

FOR

CANADIAN DEPARTMENT

2 BROADWAY

-NEW YORK

1 NORTH LA SALLE ST.
A

,

CHICAGO

40

Exchange Place, New York S, R. Y.

Teletype NY 1-702-3

WHitehaH

CALIFORNIA'S
IMPROVEMENT

MUNICIPAL BOND

DEPARTMENT

BANK OF AMERICA
N.T.&S.A.
SAN FRANCISCO

•

LOS ANGELES
t

>

I i
,t

T

^

!/

ibt

2

The Commercial and Financial Chronicle

(2278)

Brokers, Dealers only

For Banks,

The Security

participate and give their reasons for favoring a particular

private wire

system, reaching banks, bro¬
all over the
country, can be of service to

Stetson, New York City
Members

you.

Primary markets

General

500 issues.

Over-the-Counter experience

Just call

.

Exchange

Stock

York

New

Exchange

I like best is in every
sense of the word a special situa¬
tion. Its future has no direct rela¬
tion to that of the stock market,
national

tne

"HANSEATIC"

for

It

Established.
Associate

Member

Stock

American

Exchange

120 Broadway, New

York 5

term

tne

of

•

CHICAGO

•

SAN FRANCISCO

could

Private

Wire System

become

highly re¬
spected,
in¬
a

Bradbury K. Thurlow

"blue
chip," yielding within a very few
years
100%
and
more
on
its
present market price.

grade

GROSSMAN
& CO. INC.
Members

N.

Dealers Ass'n

Security

T.

—

★

—

Exchange Place, New

York 5

Phone: WHitehall 3-7830

Plywood,

the American

on

patent which, in
my opinion, is one of these utterly
simple devices that have in the
owns a

been

basis

the

is

It

finishing

for

in

enormous

brief

a

wood

providing
at
cost a smooth fin¬

process,

practically

no

from

the

wood

its original

In

wood

Life Insurance Co. of Va.

Commonwealth Natural Gas

STRADER and COMPANY, Inc.
VA.

The

uses

lawsuits.

worthless I
in the

If

its

little

itably)
tential

market

$2

well

billion annually.

wood

charges

in

of

excess

General Ply¬

royalty based on
2% of gross sales and believes it
has a sufficiently broad patent so
that no process now known can
challenge its money saving results.
a

This belief has been and is

now

can

patent is
no value

or

could and should

in my

opinion, be worth upwards
10
times its
present market

of

today's conditions
speculation? looks
Even considering the ob¬

Under

price.

kind

of

a

vious risks I believe General

is

wood

Ply¬
enticing

of the most

one

capital gains opportunities I have
ever

seen.

S. VLAUN

Members
Airwork

set

are

of

winds

From

a

under

private

Exchange

small and poor to defend its rights

on

or

of

the

will emerge

process

Report Available

come

tradition

Cluett-Peabody, Hazeltine,

is

or

our

MEADE & COMPANY
27

William

Street

New York 5, N. Y.




layman's

a

be

of

patent friends

no

have

but

told

these

me

the

tion

possible

follow

of

rewards

successful

this suit,

should

prosecu¬

the stock is in¬

as

a

no

circumstances

solicitation of an

offer

to

to

Raw

many

Lawrence

S.

just to
as

can

1950

to

a

one

commercial

buy,

any

as

—

Liquid

Dlgby 4-2727

should

work

has on its books
engine overhaul

mention

few.

a

domestic

such

It

air¬

Riddle, Mnckey, Mohawk,

that

Saudi

In

particular,

more

than $1,000,000

Arabian

..The

an

offer

to sell, or

security referred to herein.)

You

give

largest

Airwork's

of

friendship

$1 package you send

the world's

Airlines.

part

and

food

hungry thru the

CARE Food Crusade,

New York

volume continues to lie in the sale
of

aircraft

acts

as

a

multitude

products for which it

distributor. It handles
of

items

a

manufactured

by Aerojet-General, Bendix Avia¬
tion, B. F. Goodrich, New York
Airbrake and the Pratt & Whitney
Division of United Aircraft.

line

tremendous

a

Ameri¬

Airways' (Bel¬

gium), Aerovias Brasil, Argentine
Airlines, Ethiopian Airlines, and to

con¬

air

include

customers

International

with every

current

turbine powered planes,

be construed

Refined

being sold.

active

services

airline

Vlaun

than 6 million hours

costing

now

company

300

lines

accelerate.

newer

—

Exports—Imports—Futures

plane, but also from the sharply
increasing
number
of
private

.

During the past three and oneyears,
Airwork
has
been
studying the entire jet picture and
„

half

has

come

the

accessory

ness

should

board"
terms

to

the

of

conclusion

part

serve

since

it

future

this

of
as

sales

muqh

and

/for about 20% of the cost
overhaul

of

the
a

in

profiL

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX

complete
jet engine,

20'Year Performance of
35 Industrial Stocks
FOLDER

power
acces¬

REQUEST

National Quotation Bureaa
Incorporated

46 Front Street
on

ON

of the

sories account for about 35%. With

Continued

N. Q. B.

"spring¬

a

offers

that

busi¬

For
example, accessories
on
a
reciprocating engine now account

package. On
(This is under

SUGAR

Seaboard & Western, Trans Carib¬
bean Airways, and TWA. Foreign

half of the private fleet more than
10 years old, the sale of newer,
faster
replacement
airplane^

the

•

aircraft

entire

an

overhaul

also

exists for private plane
servicing. Furthermore, with over

that

•

burgeon in the years ahead not
only from more flying hours per

to

figures

"

bill on a larger engine
anywhere from $5,000 to

run

Steel,

market

tested in the courts. The company
is confident of winning, and, based
on

overhaul

Airwork's

craft

that

T;

'I.1';

$15,000 per unit. Since American
enterprise is demanding more and
more speed in travel as corporate
operations become more far-flung,

of

in

NEW YORK 5, N. Y.

engine with its thousands of parts
in four or five weeks, and a typi¬

the

more

"

r-

engine generally finds its
way to a repair shop at intervals
ranging from every six to twentyfour months depending upon us¬
age.
Airwork's
highly
skilled

STREET

WALL

99
!•'

>8

way, an

of

flying hours last year were less
than 4 million. It is obvious from

legal

value,

that infringement suits are often
merely a matter of course and that
a
patent to be valid 'must be

would

Dlgby 4-7930

can

LAMB0RN & CO., Inc.

including such corporate
customers
as
Alcoa,
American
Can, Bethlehem Steel, Chrysler
Ford, General Electric, General
Motors, Gulf Oil and Republic

truly amazing when

siders

Obviously

profit

1,500 hours,in the air (about 300,-;
000 air miles) or stated another

3,000

hours

rate of

Pepsi-Cola.
opinion

to over-all

substantially higher. An air¬
craft engine is usually serviced
after a time allowance q£ ,1,^00 to

around

successful

as a

in the

company

sales,

runs

7,600

over

Investment Bankers

Broadway,N.Y.6 COrtlandf 7-5680

accounts

lion

to

111

ap¬

total

of

28%

contribution

its

for

accounts

business

proximately

which has increased from 2.8 mil¬

scheduled

depending

F-27,

Tokyo, Japan

Although Airwork's engine over¬
haul

The

to trial and,
outcome, Gen¬

Be this as it may, Gen¬
eral's suit against U. S. is shortly

courts.

the

on

business
and the

in

Grumman Gulfstream.

units in 1959, 'with
9,000 indicated for 1960
Currently, about 50% of the nar
tion's
75,000
registered
private
planes make up the business fleet,
with the number expected to top
120,000 by 1975. Business flying

by legal action in the arduous and
expensive labyrinths of the law

and

F-27,

aviation

some

ing

Associates, Inc.

Brokers &

planes

eral will either be left with noth¬

Electronic

of

Fairchild

post-

increased

too

York, Inc.

Affiliate

Yamaichi Securities Co* Ltd.

a

sold each year

they

was

of New

Rolls-

overhaul

to

engines. These en¬
gines are used in airline service
on
the Vickers Viscount and the

in

number

write

Securities Company

Dart

Royce

sub¬

low

or

Yamaichi

Beech, Piper, and Cessna
The company is also the
only non-airline shop in the East

sequent yearr.

com¬

had

Call

planes.

rec¬

planes,

ago

For current information

po\yer

in¬

dustry to

Plywood

General

STOCKS

business it still proudly
In addition, Airwork
Lycoming and Conti¬
engines which currently

a

nental

civil

booming

panies have been using their pat¬
ent and would have admitted the

long

JAPANESE

overhauls

tail

war

big

:•»

possesses.

rid¬

on

the

ing

branch offices

our

engines and distributor of its

parts,

ration, a company bolstered bv an
aggressive management team
whose
sights

and

believed

Stock

to

cal repair

My choice for the "Security I Like
Best" column is Airwork Corpo¬

1961

infringement

'

■

Corporation

levels

not

City

York

New

ord

these

Direct wires

Shortly after its inception some
14
years
ago, Airwork was ap¬
pointed by Pratt & Whitney as
one
of four authorized shops for

can

tirely different that they have in¬
vented by themselves.
General

'

&

York

New

aviation

claims

Redpath,

Parker

Auchincloss,

Birmingham, Ala

equipped
"• ;

are

for turbine work.

can

LAWRENCE

their processes are something en¬

Primary Market Maintained

which

6, N. Y.

Mobile, Ala.

team of mechanics and technicians

subject of dispute; for U. S.
Plywood and Georgia Pacific are

the

prime market for the

a

Airwork

as

is

stock, but if the courts up¬

hold it, the stock

currently being sued by General
for alleged patent
infringement.
Both
big companies claim that

+

see

question

to which the

is immediately (and prof¬
applicable indicate a po¬

TWX LY 77
York City

competitive with

more

once

aluminum.
process

'lit

taxation by

the company

not

or

its

win

Applied to wood sidings
(as used in home building) it can
enough in paint costs to make

Bassett Furniture Industries

to New

immediate

The

whether

save

American Fnrnitare

—5-2527—

might well be

Plywood

avoid double

to

company,

ration.

Trading Interest In

Private Wire

royalty

a

distributing substantially all of its
royalty income to stockholders.

unique.

thin, plasticlike coat

drawn

application
to plywood panels and doors the
surface is smooth enough so that
a coat of wax will provide a satis¬
factory finish for household deco¬

LD 39

able

sealed with

a

are

authorized

exclusively

Stock Exchange

NY 1-1557

New Orleans, La. -

each,

relatively few independent over¬
haul and service companies. sucl.

spinning off all operating units to
and declaring itself

this

lignin

favorable

a

stockholders

ished surface which is primed and

itself.

LYNCHBURG,

following

American

Hflnover 2-0700

its

Exchange at around 16. The

company

of

1-2762

Teletype No. NY

Stock

fortunes.

(To Brokers and Dealers)
40

General

currently selling

and

Odd Lots

on

is

stock

past revolutionized vast industries

BONDS
Bids

The

thought to be infringing who
presumably start paying

General

Members

•

■

19 Rector St., New York

$5,000,000
figure would double and would at
least redouble by the end of 1964.
Assuming
52%
taxes,
earnings
could exceed $10 a share by 1965
(the company has about 1,000,000
shares outstanding), but there
seems
a
real possibility that by

vestment

S. WEINBERG,

the initial damages) from
two companies now being sued

(plus

In 1962 I estimate this

radical specu¬
lation at pres¬

BOSTON

Nationwide

would be

^

Members New York Stock Exchange

.

'

•"

_

STFINFR ROIISF A Cn
Ul EJWCII, IUIU3E. « 1#U

takes

court decision.

a

PHILADELPHIA

'

°

excess

royalties

ent, but if all
goes well it

Teletype NY 1-40

WOrth 4-2300

fPaffp 21
^

Bought—Sold—Quoted

Lawrence

—

Auchincloss, Park& Redpath, New York City.

er

of $1 million
expected the first year

in

Corporation

S. Vlaun, of

would

most widely
accepted sense

1920

place,

trial

the

before

books

now

industry.
is
in
the

own

Corporation

Airwork

infringement, and the balance
mostly from companies who are

its

even

1961, assuming the suit is
settled early next year, royalties
from the process could be coming
in at a rate of better than $5,000,000 a year (of which about $1,-

its

Bradbury K.

—

Thurlow, Vice-President, Winslow, Cohu & Stetson, New York
City. (Page 2)

of

for

mat¬

that

ter,

end

the

o r,

economy,

New York Hanseatic

Louisiana Securities

security.

000,000 would come from business
the company expects to have on

Plywood

The security

'

.

&

Cohu

W inslow,

and American Stock

.

Their Selections

I estimate that by the

triguing.

THURLOW

K.

BRADBURY

Vice-President,

kers and dealers

pays

Alabama &

Participants and

General Plywood

"Call HANSEATIC"

over

Thursday, December 8, 1960

In ina investment and advisory field from ail sections of the country

Problems?

in

each week, a different group of experts

A continues forum in which,

.

Week's

This
Forum

Year-End Tax-Switch

Our nationwide

I Like Best...

.

.

page

44

New York 4, N. Y.

Volume 192

Number 6010

.

.

The Commercial and Financial Chronicle

.

(2279)

What Steel

CONTENTS

Industry Must
Realistically Face and Do

t

By Dr. E. Finley Carter,* President, Stanford Research Institute,
Menlo Park, California
' - ''

VI

1>

Attractive—Kenneth
What Steel Industry

;

by those whom he criticizes, the distinguished research head out¬
lines the serious problems which even
singly threaten the industry

-

and delineates what should
characterized

search

in

"staid"

as

be done to

and

metallurgy and

"old."

In

addition

developments, Dr. Garter

process

cause

it.

civilization

Our

The

be
rock, but certainly it

founded on

may

has been built by steel.

pliances,

and

other

of

cars,
features

thousands

99 WALL

'

would-be impossible. Our national

that

far better
ups

a51?£
Steel touches

try.

lives
live

our

Spahr—————w— 10

FEDERAL

I

But

the

.

,

do

past,

as" it

than I

to

describe

present,

industry, and to the

;

business

that

there

and

section

—Edmond

of

®stment

en-

in

values
values

the
the

and
and

other

—Paul

ma-

^

though

old
old

cuscus

melting clean away.

are

that!

Imagine
thought

had

I

never

'

conveyed—perhaps to only
sts

na

I

u

i

but

people,
.

who

them

among
w

lte^ f

a

particularly

unfortunate

most

*

Prospectus

on

request

43

39

*

Broadway, New York 5
DIgby 4-4970

As We See It

(Editorial) -.L-.—

Cover

—

Coming Events in the Investment Field

——

—

Dealer-Broker Investment Recommendations————

Einzig: "The Choice Is to Defend

the

from

16

Harvey Wells

44

—

Struthers-Wells

8

Devalue the Dollar"- —: 20

or

'From Washington Ahead of the News—Carlisle

And when an

Mutual
NSTA

Funds
Notes

-

-

Bargeron-

Activity—:

Indications of Current Business

time, it presents heavy bur-

with the

-——

—

—- > _

i.

—

—

—

—

---

*

31

this

*

News About Banks and Bankers————————
Observations—A.

Wilfred

May———

—-

—

14
15

4

to solve them, and to continue

few

important

carving out ever more

]our-

jobg
It

^

fo6r

used

asked

Our

steel to do;
be

to

when

what

you

he

Public

Governments——————

—

25

Utility

Securities.

—

_

Jordan

Sportswear:

ElectronicCapital Ltd.

Singer, Bean
&

MACKIE,

Teletype NY 1-1825 & 14844

Chicago

Securities Now in Registration.——

—

——

32

Los

sive

job

since

the

pretty impres-

a

modernizing

of

And

war.

.

could

not

be

France, Japan,
about the

_

said

Philadelphia

or

of moving

Germany,

that

willing

be

souls

in

they

consider

staid

or

old?

.,

.

ahd You—By Wallace Streete—

The State of Trade and

™°rtffnXngnthaUhere are'afl

Tax-Exempt Bond Market—Donald

newly-developing

to

the

get

them?

steel

0f

sor|;S

new

horizons

open

The Security I Like Best

Does

Do

new

industry

specialized in

Washington and

ways

——1J

Industry-

—

——

You

——

—

"5'

Glickman Corp.

6

—

44

industry? To me it suggests a pos-

Continued

on page

30

z

Futterman

FINANCIAL

Company

Founded 1868

;

.

•

CLAUDE D.

25 BROAD ST., NEW YORK 4, N.

Schenectady

J.

SEEBERT, Treasurer

MORRISSEY, Editor

Thursday, December 8, 1960

Glens Falls
Worcester

Dank

vertising

+,

plete statistical issue—market
records,-corporation news, bank
state and city news, etc.)
.

'Other: Office:

Chicago 3i 111.

WM Y. FRANKEL & CO.
INCORPORATED

Other Publications

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

Y.

TELETYPE NY 1-5
Chicago

Subscriptions in the United States, U. B
Possessions, Territories and Members o'
Pan-American Union, $65.00 per year; li
Dominion
of
Canada,
$68.00 per
year
Other Countries, $72.00 per year.

.

Stock Exchange

TELEPHONE HAnover 2-4300

Subscription Rates

Y.

9576

SEEBERT, President

DANA

second-class matter Febru¬

Publishers

Park Place, New York 7, N.

WILLIAM

as

25,

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

Reg. U. S. Patent Office

GEORGE

Members New York

Reentered

CHRONICLE

WILLIAM.B. DANA COMPANY,

*

Corp.

Copyright 1960 by William B. Dana

ary

Spencer Trask & Co.

Newark

2

Column not available this week.

REctor 2-9570 to

Nashville

r—

Mackey——

The COMMERCIAL and

Albany

—

Tenney Corp.
*

of looking at the steel

25




——

to

PREFERRED STOCKS

Boston

16

this concept suggest any

?

^

—

1-.

——

Published Twice Weekly

have

25

!

them.

I hardly think so.

For many years we

—

No

looking at the whole complex of

to mortgage their

order

people and goods.

and Red

they sometimes seem

badly

———_j——

ionger
they snipe at trucking
aad airlines. They , are too, busy

countries who want steel mills so

to

Corner

Italy. And what

Soviet Uriion

China? And the

The Market

for betterandmoreefficient ways

it

_

of

Security Salesman's

St. Louis

40

———

plant the rails. Rather, they are looking

certainly

■

They reject confinement to

tude.

Dallas

Cleveland

Angeles

San Francisco

Prospective Security Offerings—

they have done

INC.

40 Exchange Place, N. Y.

HA 2-9000

17

did,

he would answer, "I'm in the rail-

occurrence,

on

Photocopy

Direct Wires to

that

railroader

a

Reporter

BBM

22

future.

within

publications? In either case, it is
a

18

•

dens to those who are concerned

in-

p

_

Bank and Insurance Stocks———

But I believe
industry; there
dustry's image of itself, or is it exists the strength and the vision
rather the image that has been to meet these problems head on,
old. Is this the

or

——1—1——

J E. Re illy & Co., Inc.

~

aUCr am°Unt °f

taken singiy,

same

iy.

+v»io

To

^

either staid

Einzig

but

•

industry faces all of them at the

the steel industry as

of

BAIRD-ATOMIC
;

Money Gifts the Answer?————_.

United Kingdom, Benelux, Germ®?y' and Japan*,
These are serious problems,
evgn

toms

14

apout the inroads of

petition,

it has seemed this year as
bid
old

CENTERS

Pont——————————————

Some Recent Changes in Forward Exchange Practices

lastly, of course, they talk '
.foreign com-1

And

the

was

"In...the staid old steel industry,
the
the

UNITED BOWLING

.

aluminum,

plant

present

used

lead sentence. It read:

;

du

Regular Features

struck

what

about it particularly

me

13

American Capital Abroad—Its Problems and Profits

are

trouble

available

already

.are

the current state of affairs in the

industry,

ACOUSTICA
12

ASSOCIATES

v^strpent m ,present, p a .
.
titled "Disappointed — But Not
' They mention the current trehds
Despairing." Some may perhaps in many fields towards light conhave seen it. The article discussed struction and compactness, with, a
steel

1———————————

-r-Joseph H. Taggart———

—Roger W. Babson————

unrest'511,8

reading^Neiosioeek not so
across" an arthe

s

One Massachusetts Man Comments to Another

c s*s an<^ lab°r unrest,
They talk about new technologies in steelmaking—technologies

na-

long ago, and came
in

RESOURCES

11

terials

.

ticle

Dean

Business Recession Can Be Checked Sans Pump Priming

.

know

inroads

the

even

tion, and how we can most effectively meet the research needs
that lie ahead.
*
I was

-

>

you

that

The"

.,

,.

,

search—about6what°to
the steel

may,

prestressed' concrete,
pjastics, copper, and

t

wish

not

nor

■

proclaiming

prophets

facet of
a'ny other

than

more

,

H.

,

every

product.
T

begin to conold, we begin to

-

Be

STREET, NEW YORK

GINN & COMPANY*

downhill, and I daresay there's
a steel man who is willing to
that the steel industry is.
past its prime and heading for the
skids!

I

9

admit

of

■

Telephone: WHitehall 4-6551

v—————7

————

Our Gold Reserve Ratio—Walter E.

not

civilization

our

I

Obsolete Securities Dept.

Suppliers of Private

as

—Ira U. Cobleigh———

go

.Without

it, our skyscrapers, railroads, ap-

V

3

_

of Doom

we

ourselves

s

The Backward Art of Stockholder Communications

—Arthur

minute

sider

I

They all split their sides
laughing at-us for buying
their junk.

Russia's Aggressive Role in World's Petroleum Markets
The Prophets

everybody's business be¬
we are all so dependent on

V.

urges

products, to customer relations, labor-management relations, and> the
entire field of human behavior. You can't resist change or look back¬
ward instead of ahead, he warns in recommending knowing where
to go and applying research to achieve the kind of a future desired.
Steel is

■

■COMPANY

STORY

Cover

Must Realistically Face and Do

Sherman Adams———.

Credit—E.

I

'

;

■

research be devoted to the development of new uses for its

more

;

Banks Must Regain Their Position

scientific

to

Ward

—E. Finley CarterJJ..

keep industry from being

I

SPOT SIDE

Outlook for the Stock Market and Issues Currently
»

V

page

■'

The steel industry is indicted for

I

AND

Ar tides and News

budgeting the lowest R/D allocation
of any heavy industry, and bluntly advised to
spend a lot more
money on research over the next decade* Invited to give his views

3

$45.00

quotation
clearings,
.

.

„

;

• 135 :South
La Salle St.,:
(Telephone STate 2-0613).

and

per

Quotation

year.

Record—Monthly

(Foreign Postage extra.)

Note—On account of the fluctuations in
rate
of
exchange,- remittances, foi

the

foreign

subscriptions

and

advertisement*

must be made in New, York funds.

39 BROADWAY, NEW YORK •
WHitehall 3-6633

Teletype NY 1-4040 A 1-3840

I

4

.The Commercial and Financial Chronicle

(2280)

is corrected by a secondary move¬

30-years.

ject

,

from

which

,

.

Thursday/December 8, 1960

Schabacher
the sub¬

Richard
wrote the first books

ment .in, tfie
opposite direction
which fails to trace more than

,

on

Janney, Dulles &

gained
since no

first

I

to

50% of the preceding move,, then

BY A. WILFRED

conclude that the original
primary movement will resume
in due time.

MAY

some

commercial charts were available
at that time I made my own by

PHILADELPHIA, Pa

—:

the

this city's best-known

investment

we

may

,

,

■

<

„

.

.

knowledge,

hundreds.

and

For

years

many

Two

of

now
and
stock ~ brokerage
I
have
used
Stephen's banking
major queries on thisgadgfirms are planning to merge, ef¬
to our mind. (1) Why is Graphic monthly charts. A cursory
fective Jan. 1, 1961.
truly great and worthwhile profits this
"safety belt" stretched to just study of such reveals definite in¬
in stocks lies in following the
Involved in
the
consolidation
50%—in lieu of say 40 % Or 60%? formation as to long term trends,
primary bull trend all the way The burden of
are Janney, Dulles & Battles,
.
..
logic is surely on buying and selling points.
Inc.,
up.
The modern Dow tneorist our
I have never studied economics which traces its history to 1890,
chartist-rauthor; in 'the light
will try to base the greater por¬
of the so extensiye ground of inac¬ except what I have learned from and E. W. Clark & Co., founded
tion of his thinking on the long
tion
from the
market peak or reading financial publications.
I in 1837. In a joint announcement,
primary trend. If he can find trough, before one's invested posi¬ consider that I know nothing Bertram W. Wilde, President of
enough technical and psycnologi- tion is
changed. (2) In the "dis¬ about understanding
a
balance JD&B, and Sydney P. Clark, sen¬
cal Dow Theory assurances that
covery" of a bull market follow¬ sheet. The only substantial losses ior partner of the Clark firm, said
the major or primary trend is up,
ing a bear market, how.reconcile I have taken have been in in¬ that the combined company would
then
swift
or
sizable
reactions
with either legitimate income or stances where I ignored the im¬ be known as Janney, Battles &
within a primary bull market will
appreciation goals the long unin¬ plications of the charts. One such, E. W. Clark, Inc. Final papers are
not alarm him. In fact the prob¬
vested interval? Such investment my worst in 30 years, was United expected to be signed Dec. 9. V
ability
that
the
primary
bull
Mr. Wilde will be President and
prohibition embodies one of the Fruit which in 1955 was con¬
market will remain in force will
cardinal drawbacks also present sidered by a leading statistical or¬ Mr. Clark senior Vice President
do much
to
convince him that
in Dow Theory practice. (A table ganization to be undervalued at of the
company, which will have
such reactions offer excellent op¬
previously published* in this col¬ 55, with a projection of 90 within its headquarters ■ at 1401 Walnut
portunities to buy."
umn shows that a follower" of the
three years. Of course you know St. Twelve branch offices will be
Dow
Theory since 1896 would what happened. The charts were operated: The city's Germantown
Investors* Tranquilizer
have missed an average of 65%
saying repeatedly "sell" but I section;
Pittsburgh,
Bethlehem,
.What a wonderous tranqulizer
of the bull swings.)
r v;
ignored them long enough to in¬ Easton,
Johnstown,
Lancaster,

Two

SECRETS
not

Is

of the most valuable,

one

reliable

most

SPREADING MORE

simple, and accessible indicators
being sorely
neglected by the
"signal" men?
We refer to the
number
of
"How-To"
books

which, conforming to the crowd's
psychology always peaks out dur¬
ing a bull market's final phase, or

(the first stage of the following
(bear movement. (The reason for
the latter delay is the time elaps¬
ing
between
the
manuscript's
writing and its delivery by the

printer.)
The newest arrival in the Beat¬

ing-the-Market family approaches
"the problem" via compromise be¬
tween the impersonal laying down
of principles and systems, and the
How
I Dunnit Myself versions.
Aptly titled "How I Helped More
Than 10,000 Investors to. Profit
in Stocks!" by George Schaefer,
(Prentice-Hall, Inc., Englewood
Cliffs, N. J., 256 pp., $4.95), it
transfers the pressure of first-

.

procedure

to

the .et.

.

.

.

,

.

this kind

of

trend-faith must

inner

with echoing

sanctum,

testimonials from them

as

cur

"From

Street,

Wall

all

cuss

of

ment

Street

Main

to

America

over

last

current advertise¬
volume, "normally

week," reads

a

the

ball.'

quiet book stores took

on some

erf

as

investors hurried in to

get the first copies."
This raises the underlying ques¬
whether such "reader popu¬

tion

lation

centi

explosion" of the cognos¬
(the caption emblazoned on

the advertisement reads "Schaef-

er's New Book reveals His Stock
Market

not

does

dilute

Secrets!")
proportionately

Forecasting
per

the

se

value

of the

the

ball

is

formerly

..I do not dis¬
specific issues. I have found
on the

it gainful to keep my eye
ball!

-

to

and

individual

leave

Bewildering Discretion;
it is that

True

the

substantial loss.

a

Otherwise

I have had very few small losses.
I am a country doctor in a small

author adds

sort of

Norristown

Sunbury,

and

York,

Pa.; Baltimore, Md.; Camden and
Wc-oabury, N. J. '
J/:.■

saving amendment the and poor locality—with very little
Other officers will be: Theodore
this concept should financial
return.
Hence
in
my
C.
Sheaffer, senior Vice Presi¬
alone, without other early market days I concentrated
dent; Winthrop H. Battles, senior
tools.
But this
puts the-finger on pure trading to build up capi¬
Vice
President
and
Secretary;
:
directly on a major weakness em¬ tal.
\1 •
Harry Grant, senior Vice Presi¬
braced by the technicians.
They
Ceased Trading
dent and Treasurer; John H. Re¬
employ vaguely
described,
but
In
1946 I ceased trading and
pass,
senior
Vice
President.
constant" discretion
in
as

a

that

caution

never

be used

.

choosing

tried

weighting,
between
their
various signals and other tools.
and

to

concentrate

invest¬

on

ment.

Named

Presidents

Vice

as

are:

My portfolio which has
gradually and
continuously in¬
creased
in
value, now consists

For

Blake, William H. P.
Townsend, John A. Thiers, Wil¬
liam Kalellis, Stephen G. Duncan,

technical approach.

ment advertised for

Sidney

S.

example again expounding
Investment Line," largely in utilities,
oils, foods, E. Mortimer Newlin and Willard
and
moving average as used by such communications
chemicals, S. Boothby.
post and back again to pillar.
technicians as Harold Gartley and with a few odds and ends of
steel,
In the summer of 1953 I went
The combined firm will have
-ii
Harry Comer in the 1930's, Mr. electronics, stores, et£?1,1 r
to
Indianapolis and spent four
memberships on v the. New ,York
Schaefer is quick to insert this
I attribute what success I have
hours discussing the major trend
Stock Exchange
J .American Stock
caveat, "As with all my oth&r had
largely to the charts in timing Exchange* C (associate)
w|th Mr. Schaefer, and asking
and
the
technical studies discussed in this
my purchases at the most favor¬ Philadelphia-Baltimore Stock Ex¬
questions of the preceptor, and
publication, The 200-Day Invest¬ able
gained a nice wealth of knowl¬
time, k'nd also at favorable change.
-V'Ya V :
ment Line should never be con¬
times to sell.
For many years I
edge from him." (We venture the
sidered alone. The investor must
Janney, Dulles & Battles is the
have sold only enough to recover
question, as to how "nic,e" the
learn to fit it into its proper place
outgrowth of the firms of Mont¬
trend
all
or
a
knowledge
gained would
large portion of my
gomery, Clothier & Tyler, organ¬
have been from a visit in the among his other forecasting tools, original
cost
and retained
the
ized in 1907; Wurts, Dulles & Co.,
and to use it correctly in an eversummer
of 1960—after, and not
balance
of
stock
remaining.
I
changing market."
/ have done this since my paper established in 1904, and Battles
before,
the
record
practically
& Co., organized in 1890.
Again, in advocating the Dow profits are very large. I am 64
straight-line 1953-1959 bull marE.
W. Clark & Co. traces its
Theory,
our
author
sometimes years old and feel that for the
ket-)
-7
the anti¬ long run; the stocks are worth establishment to 1837, making it
Quite ironically, the author de¬ inexplicably includes
one of the oldest securities firms
more than the
cash minus gains
votes considerable space, perhaps quated Rails' Average, and some¬
in the United
States.
Founders
times not.
tax.
I do not feel that I could
the most constructive part of the
|
were Enoch White Clark and Ed¬
operate
efficiently without
the
volume,' to the psychological
The Indispensable Ear
s
ward
Dodge. Jay Cooke began
aid of charts.
I am for them 100
phases of the investor's behavior.
his career with the firm in 1839
Not only does the author fail
per cent.
I wouldn't say it was
Surely his own fascination with
and
became, a
to advise his reader as to when
partner in 1843.
easy or simple, but feel that they
charted trends, in the context of
The firm was active in the gov¬
and to what degree these discre¬ are a tremendous
help and can¬
escapist imagery,
involves
ele¬
ernment's efforts to finance the
ments also belonging in the emo¬ tionary indicators and tools are to not see why anyone couldn't be
Mexican War. Jay Cooke record¬
be relied on; but also how con¬
tional category.
successful over the long run by
ed that: "On the breaking out of
flicts between them (as the 200Further tranquilization is af¬
fair use and understanding of the the
Mexican War, the Govern¬
Day Investment and the 50% Con¬
stocks

to

battered

those

who

like

from

around

to

pillar

get

to

his

"200-Day

a

.

.

t}ie look of busy brokerage board
rooms,

investments

In

to how the primary trend..

they got to "do it."

,

be

to the otherwise nervous investor!

Thus, one of his Service's sub¬
scribers, in
testifying how his
"$135,000 grew to $500,000 with
the primary bull trend," explains
"In all games involving a ball,
person
boastful millionairing especially tennis and golf, the
from the author to the 10,000 in main thing is 'Keep your eye on
his

come

.

,

secrets

"secrets?"

market

game

the

In

stock

of Musical

Chairs,
swell the
players
scrambling for the constant num¬
does this not abortively

number of profit-seeking

ber of available chairs?
For

more

,

than 20 years a "Dow

disciple" (which "aging" theory he
"revitalized"

has

with

theories

and

his

of

"bolstered"

own),

Mr.

Schaefer has been conducting

an

advisory service, "The Dow
Theory
Trader,"
from
Indian¬
forded from the volume's omission
apolis
of
taking
into
account
Uncle
Along with describing some of
the volume's high spots, we herein Sam's beastly income tax bills.

Mr.

cite faults which

history

significant in
typifying foibles that constantly
pervade the market community.
are

"Trend" Worship

As with practically all the High
Priests of the Technical Approach,
Mr.

Schaefer

relies heavily
on
discoverability of "The
Trend." ("Primary Trend — Key

alleged

to Profits. The trend tore

through
the
Fifties,
scattering fortunes
among Schaefer's followers.")
In discussing Dow Theory, be¬
fore introducing his amendments
to it, the author pays homage to
its

Trend-Signaling

"I

believe

that

thus:

power

the

safest

and

cept)

are

it

evident

is

to be reconciled.
in

Thus,

instance

the

of

Schaefer

advertisement in a metro¬
politan newspaper last Sunday.
Depiction of the author's "fear¬

page

cept

.

great

.

.

which has given

comfort

and

me

reassurance

less"

ment

of

several

years'

the

almost

pinpoint
duration
his prediction."
us

readers
of

wish

the

accuracy

for

the

similar

of

volume's

good fortune

*

IN OUR MAIL BOX

Quoted

From

Alfred L. linden Broeck & Co.
New York Stock
66

MEMBERS:

Exchange

American Stock Exchange

LIBERTY STREET,

Tel.: BE 3-88SO




Private Wire

a

NEW

YORK 6

Teletype NY 1-4680

I

was

your

System

to

Canada

greatly

comments

Granville's

Line

In

Philadelphia's

S.

U.

W.

Blackford

offices

Mr.

&

George

Inc.,

Co.,

with

Andrews

in

securities business.

a

Blackford

Alex.

C.—George

the

in

to engage

S.

has formed

Blackford

Brown

was

&

Building,

formerly with

Sons

and

A.

M.

issue

Gazette,

appeared

there

1837,

bi-weekly
of Feb. 15,

tisement:

an
:

-

adver¬

Stock and
25 South
Third Street, will purchase East¬
ern, Western, Southern and most
Wi Clark

"E.

Notes

of Bank

kinds
est

& Co.,

Brokers, No.

at the low¬

rates of discount.

"Spanish, American and English
gold bought and sold on

favorable

terms.

"Stocks of all kinds bought
sold

and

commission, on the usual

on

terms."

•

Admit 2 Partners

To Admit Partners

F. S. Smithers &

Herzfeld

May:

book

analysis since
•

W.

bids

F. S. Smithers Will Herzfeld & Stern

Ex-Trader, Happy
With Charts

I have been a reader of your
column in the Chronicle for many
years.

SPARTANBURG,

the

opened, the awards were
made principally to Corcoran &
Riggs, of Washington, and E. W.
Clark & Co. of Philadelphia."

were

an

Dear Mr.

in

Forms Own Inv.Co.

When

dollars.

of

proposals for
10 mil¬

only

*

*

Sold

lions

for

first

loans—at

Exchange

Law & Co.

amusing surprises!
*

Foreign Securities

G. W. Blackford

successful

prediction of the
market has fallen to low ground.") market's 1956 rally was followed
by the intriguing comment,
This
"comforting" theory holds "Schaefer was as
surprised as
that whenever a primary move¬
anyone—and rather amused—by
during the trying times when the

Let

=

that I have enjoyed

say

along with his case'
reading your column very much
participants,
and
other
and look iorward to it for a long
successful technicians, that they
One major variation from or¬
largely, if unwittingly, "play by time to come.
thodox
Dow, and other, trend- ear"
(a faculty that unfortunately
Lawrence Daniel Greene, M.D.
chasing theories, indulged in by cannot
be
transmitted
through
Mr. Schaefer, is his "50% RetraceStephentown, N. Y.
literature).
ment Concept." ("In my endless
December 2, 1960.
Perhaps such intuitive faults
search for
clues
[those signals
are not realized
by the author 'or4
again] to the stock market's be¬
the composers of the book's fullhavior, I have developed a Con¬
A Comforting "Stop Order"

For Banks, Brokers and Dealers

Bought

May I

Chart

I

form

on

have
for

interested New
Joseph Jan.

on

technical

used

it in

more

than

York

New

York

Stock

Exchange,

on

1 will admit Lester E. Reeve

New
New

&

York

January

to general

ment.

corporate

buying

depart¬

1

and

Lamer

ship. Mr. Reeve is in charge of the

Stern,

30

Broad St.,

City, members of the

York

and William H. Urell to partner¬

firm's
Hr "Jammed Signals In That Number
Game," March 24, 1960, p. 5.

Co., 45 Wall St.,

City, members of the

Stock

will

Exchange,

admit

on

Morris

Irving D. Karpas, Jr.

partnership, and Fran¬

cis Lamer and Barbara W. Karpas
to limited

partnership.

A

i\

*4

Volume

*

192

Number 6010

.

.The Commercial and Financial Chronicle

.

(2281)
I

Sfeei

Production

Electric

'

•'

Output

'

'

'

Steel,

The State of

;

Retail

Trade

*

Auto

TRADE and INDUSTRY

Price

Index

Prospects for keeping the adjust¬

I

?

i

ment in general business moderate

T
1'

-

and

tinuation of

Saturday, Dec. 3, clearings

from all cities of the United States
from which it is possible to ob¬

assuming

tain

con¬

positive approach to
the future, the Chase Manhattan
Bank says in the current issue of

*

a

totals

stand

same

tainties

which

change

in

national

tration," the review

says.

action by President-elect
to

develop
grams
that

and

"Prompt
Kennedy

announce 'pro¬

will

contribute

week

a

adminis¬

to

Dec.
New

to tell

moment

the

Ken¬

nedy administration will embrace.
.? ,|v;

;V

¥

view

of

responsibilities

'

A5-..

'•W

H
I i'f:/
;v-

in

But

!fw» ' -.Vl

fronts

it

is

policies

the

tremendous

the

to

be

nation

con¬

hoped that the
will
build
on

adopted

America's

vast strength by main¬
taining the integrity of the dollar
and

encouraging

the

increase

in

investment necessary for substan¬

tial economic progress,

4.

says.
'

the review

/■

Most of the

significant business
indicators have moved moderately
downward since July, the Chase
Manhattan review reports, listing
•

these

national

product in

con¬

|

I

b

tenths

of 1%.

J
I

■

It

in

October/ Output

able

non-durable

and

turned

''

down.

The

both

of

107

dur¬

goods

has

v:/

rate, sea¬
sonally adjusted, rose from 4.8%
in February to 6.4% in October,
while
employment has been on
since June.

Housing starts have been well
below last year. The Commerce

Department
t I

a

1960

estimate for

down to

been scaled

whole has

1,250,000 units

—

as

almost one-fifth

below the near-record 1959 level.
the

At
w.

®

1

yh

Business

In

creasing since May. The greater
availability of funds at lower in¬
terest rates

of
.

help moderate the

can

provide
subsequent revival

adjustment

the basis for

rf

time,

same

stresses, several favorable
are in view:
The money supply has been in¬

over-all

'I

1,191,000

869,181

business

a

and

848,146

services

items

ders for defense

signs

3.4

+ 2.5

scattered

encouraged

are

indications

of

by

better

a

of

month

New

more

or¬

than

order volume for production after
the first of the year.

are

few

a

makers

buying sheets

accelerate new

of

1960

model

at retail

cars.

Yet

upturn

post-war periods.
cess

and

in expanding
1960

could

favorable

factor

than

in

earlier

The lack of ex¬
capacity in 1959
prove
to be a
in

1961.

ing

after

depressed

a

And

Bank Clearings 3.7% Above the
Same 1959 Week
Bank
;

showed

tv.

with

clearings
an

increase

last week
compared

Preliminary fig¬
ures'compiled by the Chronicle
based
upon
telegraphic advices
from

a

un¬

end

that .for. the

T

e. |



week

to

93.4

mil¬

of

a

much

a

Steel

the

op¬

ingot

and

steel

castings

on average

*86.7%

the

and

week

1,393,000

tons

Orders

for

low ebb.

In

December

this

Actual output for' laist week be¬

ginning Nov. 28, is equal to 48.9%

lift for

a

Traders confidently expect that
than 6 million net tons will
be moved abroad this year.
The

only

6.8

million

is

U. S.

million

orders.'

100,000

ton3,
than the

less

age

the

Auto

shipped out of

net tons in

months

this

year.

2,732,000

tons,

Industry to
In

The
its

the first eight

addition,

many

at

Second

Hit

auto

History

industry

production

That's half of

Year

has

schedules

Continued

on

aligned
and is
page

Why You Need-

a

plants

contemplating complete shut¬

are

for

factors

days at

time.

a

HOW TO SELL SECURITIES

These

make December the
point of the entire recession
period for the steel industry, The
may

will

'n.x-:u»

By JOHN DUTTON

on improved au¬
orders, balancing out of
inventories, and seasonal
improvement among some steel
consumers.

But

(In Your Business)

so,

be

This

modest

Most

of

.in

a

the

one,

improvement

will

'

learn about

shipments

'•

*

The initial sales

*

The various

)

the year-end situation is out

there will be

a

accounts.

advance

ordering.

Current

indicate orders

still

are

Techniques
own

went

wages

little

or

changes.
the

up

passed

notice—and

no

Nor

are

with

price
looked for

any

future.

near

no

Smaller

—

and

and their

told

you're

each of them to their maximum

the

you

can

relative
and

their

to analyze

use

attractiveness
vital

balance

on

—

of

your

various

sheet

items

steel

under terms of the

contracts,

—

securities

1, when

defined

are

no

operations Lis month.
Dec.

categories of investors

potential

re¬

stronger

Meanwhile,

approach

These

how to develop

tor, there is little to cheer about
ports

to

investment

more

regular pattern of steel ordering.

in

is designed

The final sale

*

'

point for the year.
But in Detroit, the feeling is that
way

—

proven

to

auto makers in December will be

of the

us

through modern,

/

close to the low

once

business

* Obtaining a client list

,i

r

steel

available exclusively from

—

your

are full of practical and proven selling
promotional ideas. John Dutton drew it from the best of his popular
weekly columns in The Commercial and Financial Chronicle. You'll

the basis of orders placed by auto
makers for their January produc¬

contrast,

increase

and

centers, with
January now shaping up as a
"fairly decent month.'? This is on

,

you

selling techniques. Its 25 chapters

automotive

tion.

60-page booklet

help

the January pick¬

and
reminiscent of many of the false
starts that have encouraged, then
let down the hopes of the indus¬
try at intervals since last June.

In

rf

,

even

will

be

i

primarily

tomotive

up

...

be

low steel

com¬

In 1001 ways
more

this booklet

can

help

profitable selling operation.

immediately

on

receipt of

your

you

Your

be

better salesman and

a

own copy

run

will be rushed to

a

you

order.

panies and those which have been
hit
adversely by their product
mix

are having a hard time stay¬
ing in the black. But with the in¬
dustry hard-pressed to hold its

price

I

lion

this

tons

year.

operations will prob¬
ably put the total for the year at
to

99

million

tons.

*

ORDER YOUR
COPY TODAY

*

Week's

Hopes

49.3%
for

a

of

I enclose

0

|

.

,

;

steel

production

Securities"

Y.

$2.

Kindly rush

my

'

I
I

ON REQUEST

;

■

'

■

-

•

■

2 one«..••»
^

I

of "How To Sell

Address

i

Capacity

100-million-ton

copy

to

I

PRICES ON QUANTITY ORDERS

Output to Inch Upward from Last

25 PARK PLACE, NEW YORK 7, N.

Gentlemen:

The low rate

of December

COMMERCIAL & FINANCIAL CHRONICLE

j

there is little chance
relief until operations recover.

for

98

I

line,

C ity

.....««,.«..•»*•••
'

'

*"

*

■

.

are

fading,

.

State

*
.

year

or

production is based on aver¬
production for 1947-49.

Largest Production

largest purchaser
scrap. It took 2.2

export

of

weekly

country in 1957.

Japan

few weeks before in¬

consumption is translated

new

about

record

of

into

•Index

total could reach 6.7 million

it may be
creased

placed
at
*170.1%.

more

the

a

a

domestic

com¬

are

in

beginning Nov. 28.

needed

record pace

near

providing

year,

and

that

steel

weekly produc <
tion
of
1947-49). These figures
compared with the actual levels

ingot tons.

running at

in

(based

steel

close

of

average

tons

year.

November,

of

was

'

try r indicate

will

Iron and steel scrap exports are

i

suppliers of oil country tub¬

year ago.

the chief cities of the coun¬

lion

ing and casing should profit from
a
recent drilling
upturn, though

December.

I As it stands now, the steel in¬
dustry will not produce 100 mil¬

-..'f

the

this

rate

companies
*85.7% of steel ca¬
pacity for the week beginning
Dec.
5,
equivalent to
1,376,000

Christmas

month

any

Iron

announced

of a major recovery. In¬
the improvement will be

stead,

the effect of seasonal factors

in

moderate

erating

■

of

American

Institute

into

first step

Preliminary signs point to the
possibility that the adjustment in
business
expenditures
for
new
plant
and
equipment
could be
more

back

48.3% of Jan. 1, 1960 Capacity

The

not be considered the

can

current

can

This Week's Steel Output Based
On

But, the magazine cautions, the

be an
important sustaining force in a
period of inventory adjustment.
strength

drop

during the

production

model production.

low

sell-off

At

spots.
have stepped
little as they

Retail sales picked up in Octo¬
ber, in part because of a vigorous

this

capac¬

week's output

lowest

bright

ity." This will be reflected in the

orders

the total for the period,
4,522,174
tons.

market beset by lagging of the utilization of the Jan. 1,
1960, annual capacity of 148,570,demand, Steel said.
Exports have had a bolstering 970 net tons. Estimated percent¬
less—especially if they are in in¬
dustries that are declining season¬ effect on prices at some
points, age of this week's forecast based
ally. And they are trying to keep particularly
in
the
East. on that capacity is 48.3%.
inventories
down
because:' (1) Steel's price composite on No. 1
A month ago the operating rate
They want to show a good cash heavy melting grade last week (based on 1947-49 weekly pro¬
held at $28.83 a gross ton (lowest
position when they
close their
duction) was 91.4% and produc¬
books.
(2) Some states will tax since August, 1954) for the fourth tion 1,468,000 tons. A year ago
them
on
the actual weekly production was
year-end value of in¬ straight week.

September.

private

in August and

of

of 1,404,000
ingot tons brought the November
total to about 6,175,000 tons—the

take less. Reasons: They will need

,

in

goods

will

forties

Last

ordering more steel
they bought in
they - will
probably

*

declines

durable

<

.<■

49.3%

week.

high

their buying

up

than enough to sustain
operations of 45 to 47% of capac¬

offset
for

the

upturn,

an

week's

Operations

than

November,

Appliance

production may
upturn since last
Iron
Age
reports.

The

of

last

"

Instead
this

week, Steel says mill op¬
will
be a little higher

ity, but the magazine doesn't ex¬
pect the rate to go much above
50% at any time in December.

customers aren't

next year.

There

first

Steelmakers

than

by

ventories.

steel

the

June,

til

looked

Except for the automotive fac¬

rising.

are

low | for

has

it has found

up

January
show

activity.

Government purchases of goods

and

5.0
2.1

—

Will Not Be Real Recovery
for Year

Brief
signs
.

i f

*1,150,000

Slight Steel Upturn in January

1

unemployment

the decline

%
+
—

.1,388,094

♦Estimated.

based

index of industrial produc¬

tion is off from 110 in July to
•k

y

1959

aft an¬
nual rate of $505 billion in the
second quarter to $501.6 billion in Iron Age-comments.
the
The
third, a decline of sevenJanuary upturn
The

ft;

'

I960

low

stant dollars dropped from

r

omitted

1,358,986

downs

four:

Gross

com¬

$15,416,878 $14,688,406

Boston

programs of

character

3—

York—

Philadelphia

is impossible

precisely what

economic

an

it

Our

;•

r—-000s

Chicago

dence."
the

1959.

viz:

are

Week Ended

prosperity ^ and
growth,
while
maintaining price stability, would
go
far towards assuring confi¬
At

in

week

parative summary for the leading
money centers for the Dec. 3rd

uncer¬

always surround

the

at

$28,787,245,539
$27,756,503,863
for
the

against

tne

industry

going to step

bi-monthly review, Business
Brief.
"In tne present situation it is
remove

The

week

corresponding
Our preliminary

year.

tons

Christmas and New Year's Day.

but

last

million

capacity this month. Odds are
against
it
because:
(1)
Last
month's
orders
(no better than
October's) will be this month's
production
and
shipments.
(2)
Output will be curtailed between

and

weekly clearings will be 3.7%

its

to

100

above those for the

In

important

Price Index

upturn in 1961

an

favorable,

appear

:.l y

£

promoting

ended

reach

of

Failures

Commodity

This

year-end, the industry would have
to operate at an
average 52.5%

Production

Business

metalworking weekly,

erations

To

Food

the

said.

Carloadings

5

I

.

29

aa(K,iWrMWWt

6

*W*AWW»i

The Commercial and Financial Chronicle

(2282)

pike

to

half

sold.

On
San

Tuesday, Dec. 6, $10,000,000

Looking Ahead

bonds were awarded
to the Bank of America, the Mor¬
and

state

The

municipal bond
dull since last

the past week.
of note
in the municipal business has occurred north

little

bond

Hollywood, Fla. and the mar¬
interpret this

ket has continued to

with

sidewise motion. The Com¬

a

Financial Chronicle's

mercial and

but

average

the

in

change

little

reflects

Index

We

high

grade offer¬

during the period. The com¬
posite yield was 3.237% on Nov.
30,
and presently it stands at
ing

alleviated at least

be

like

would

repeat

to

our

that New Jersey com^

contention

efficiently, comfort¬
ably and perhaps more cheaply be
conveyed to New York via exist¬

muters

may

routes

ent

facilities

and

fabricated mon¬
tube scheme.

expensively

an

tax-free

railroads

These

by

than

to

continue

can

operate, and perhaps do a better
if given some belated and

job,

First

Smith,

Boston

'•

Company,

&

Barney

other dealers. The bonds
offered

,

Trust Company,
Corporation,

Guaranty

gan

The

future.

foreseeable

the

for

yield; opolistic

bond

municipal

and

state

wise better

During

reporting.

of

been

has

and

were

re-

at

prices to yield from
to 3.65% for the 1981 ma¬

2.00%

bore interest at
y4 of 1% and was not reoffered.
The offering is reported as meet¬
turity.

The

11. We expect the

bonds for Jan.

Diego, Calif., School District

calendar

Although the new issue calen¬
dar is only moderately heavy dur¬
ing the Holiday period, it has
begun
to build-up
beyond the
first of the new year. The adver¬
tised total is now well over $300,000,000. -The largest ifesues cur¬
rently on the calendar are $25,000,000 State of Michigan, Ex¬

January.

(1963-1982)

market

$16,053,730 New Mexico bonds for
Dec.
19; $14,373,000
State Col¬
leges of California for Dec. 21,
and $95,000,000 State of California

Dec.

on

.

.

Thursday, December 8, 1960

at 3.87%

stood

Index

Bond

,

1, the last reporting date.
This
was
unchanged
from
the
previous week. -

3.30%. The issue is reported about

MACKEY

DONALD D.

BY

1.60%

from

to- yield

priced

TAX-EXEMPT BOND MARKET

.

.

1982

ing with fairly good investor de¬
ception with 70% sold.
Additionally, on
Dec." 6, the
City of Detroit, Mich, awarded

-

pressway

Public

ministration

for

bonds

There

Dec.

issues

near

expand

sale

for

in

negotiated

new

no

are

type

in

future.

The
as

up

up

List total

Blue

is

the

reported

$383,869,200 on Dec. 8. This is
over $15,000,000
in the past
but

week
the

is

considerably

below

$450,000,000
total
approxi¬
in mid-July. A continua¬

mated

and
Ad¬

bonds
Housing

revenue

$95,615,000

further

to

tion

14;

of

seems

'side-wise

the

market

likely.

$8,530,000 various general. obli¬
gation (1962-1985) bonds to the
Bankers
Trust
Company,
The
decisions.
>
3.25%.
:
First National City Bank, ot New
In the following; tabulations we list the bond issues of
•Since early
;The States of Connecticut and
summer the tax-/
York, Blyth . &
Company,.,1 lnc>,;
exempt bond market has varied New York seem to be responsive
$1,000,000 or more for which specific sale dates have been set.
The
First
Boston
Corporation,
in sensitivity and receptivity but to their woes and are construc¬
Salomon
Brothers
&
Hutzler,
Information, where available, includes name of borrower,
it
has
actually fluctuated very tively dealing with their railroads.
amount of issue, maturity scale, and hour at which bids
group. The bonds were priced to
little as measured by the various» New Jersey should exert the same
yield from 2.00% to 3.85% for the will be
indices. On Aug. 17, the average type of leadership and save for
opened.
■
•
•
\
1983
maturity. Bonds due 1984indicated yield, according to our its
commuting citizens the fine
Dec. 8 (Thursday)
1985 bore interest at y4 of 1% and
Index, was 3.20% ; only three one- railroad-ferry commuting services
Concord College, State Board of
were priced to yield 4.50%.'
"V
"
hundredths away from the current. that for years have done an ade¬
Also on Tuesday, State of West'
Education, West Virginia
1
1,648,000
1962-1989
2:00 p.m.
quate job under staggering tax
figure.
East Lansing, Mich
2,500,000
1962-1995
8:00 p.m.
Virginia
sold
$2,000,000
(1961The
tone
of
the
market for inequities and greatly diminished
1985) bonds to the group headed' Otter Creek School Building Corp., *
:
Treasury issues has shown some traffic.
Indiana
_i
1,650,000
1963-1990
1:00 p.m.
by Halsey, Stuart & Company,"
slight improvement
during the
Squeeze Play
Inc. and ' including Phelps; Fenn
Dec. 9 (Friday)
past several sessions. Regardless
It appears to many that in the
& Company, Blair & Company,
Abilene Ind. Sch. Dist., Texas____ of this, high grade corporate issues
1,750,000
1962-1985 ,1:30 p.m.
rejection by New Jersey officials Inc., A. E. Masten & Company,"
have been drifting lower recently Dec. 12 (Monday)
of
the
railroad's plea for some and others. The bonds were priced
relief

tax

reasonable

and

more

.

■

.

•

Larger Issues Scheduled For Sale

rate

reasonable

and

expedient

,

___

___

volume

issue

new

as

inter¬

has

mittently dispelled immediate in¬
terest on the part of buyers. The
marked success on Tuesday, Dec.
6, of the Northern States Power is¬

elevated the tone a shade. The
municipal bond market has been
steadier than the general corpo¬
rate bond market, due partly to
a
lesser new
issue supply and
sue,

partly
tax

purposes

season.

exchanges

-

recent

The

free reserves,

n

in
and the expectations
increase

sharp

deriving from the political sphere,
have failed to
promote the dy¬
namic

bond

many

a

tors

the
in

market

projected by
months back. With
public generally, and inves¬
particularly, comprehending
precarious situation involved

the

few

sizable unbalance of inter¬

our

national

there

payments,

seems

little likelihood of an upward bond
market trend

despite the heralded

munici¬
pals the holiday respite from new
issue volume may lure dealers to¬
business lull, socalled. In

commitments

unrealistic

ward

expectant heavy volume.
the

have

We

Port

often

ad¬

miration for the splendid over-all
New York

Authority in

Port of

area's

our

development. The recent Congres¬
sub

sional

has

tion

committee

-

altered

not

investiga¬

opinion.
We believe this vast, fast moving
organization, far from being un¬
responsive and bureaucratic, has
been a symbol of efficiency and
integrity. We are sure this repu¬
is

tation

general.

However,

continue

we

hopeful

that

become

the

involved

transportation
New

about

politics
has

our

Port
in

York.

the

of

will
the

business

not
mass

in

Somehow

general

be

to

and
the

situation

inextricably involved the Port

with

a

problem that might other¬
MARKET

ON

the

Port

New
New

both sides of the Hudson
too

big,

does

credit

no"

being

as

the

to

Jersey. We are con¬
vinced that, the commuting public
will be done a disservice through
this expensive mass

transportation

monopoly.
The

•

Jersey

the

response

tral recently

Cen¬

got on its commuter

questionnaire

indicative

is

in

tms

that

respect.

It

the Port

Authority is being placed

in

to

appears

many

disadvantageous posture that
it long resisted based on its studies
a

and

convictions, but which it
seems
compelled to accept.

now

reported

half

The

sold.

as

"

'

Recent

Financing

Since last reporting there have
been

only

few interesting new

a

sales.

On

Dec.

2

the

State

Jersey Highway Auth., Gtd.—
York (State)

______

National

and

Bank«

Trust

and the Equitable iSecuriCorporation1 and
including
Goldman, Sachs & Company, The
First National of Memphis, and
others. The balance at this writing

is

$3,300,000.

land

v'<1 >

:•

(Dec.

Yesterday

the

7)

Roads

State

.

awarded

bonds

headed by Kidder, PeaCompany and including
Stearns & Company, Laia-

Bear,
law

&

Company, Alex. Brown &

Sons, and B. J. Van Ingen & Conir
pany along

with others. The bonds

priced to yield from 1.60%
to 3.15%. Since reoffering, the is¬

were

1.90%
thirds

bonds

The

to

pany,

and

sue

is

about

reported

two-thirds

On

Dec.

5,

(1961-1980)
the

tional

awarded

bonds

The

First

C.

man

well

Illinois

Trust

Boston
&

syndi¬

Blyth & Company,

and

Devine

J.

the

to

Continental

Bank

111,, School
$7,800,003

Peoria,

#150

cate headed by

Inc.,

$8,500,000

were

Virginia

(1962-1986)

County,
bonds. This

Na¬

Company,

Corporation,

Company, Harri-

Ripley & Company, Inc.,
as

others.

The

bonds

as

were

SERIAL

ISSUES

Maturity

Bid

&

1978-1980

33/4%

1980-1982

3.30%

1978-1980

3 30%

Company,

1978-1979

3.15%

3.00 %

1974-1975

3.00%

Harriman

Ripley &

t^e

1986

maturity

bore

3.50%

coupon and was priced
yield 4.50%. The issue is re¬
ported as better than 60% sold.

2.90%

bond

3.00%
3.15%

3%%

1978-1980

3.70%

3.55%

Baltimore, Md

31/4%

past

1980

3.40%

3.25%

used for tax

Cincinnati, Ohio

31/2%

1980

3.20%

3.05%

period. This

31/4%

1979

3.65%

3.50%

their

Chicago, 111

3Y4%

1977

3.65%

3.50%

these

3%

1980

3.60%

3.55%




December 7,

1960 Index = 3.25%

have been extensively
loss purposes at this
year,

improved
issues

involved

in

have
tax

1961-1977

(Wednesday)

Sewer

:2:00p.m.

1961-1989

,

* r;

-

2:00

p.m.

-

v

■

-

7,000,000

—

^

.

:1963-1981

Washington, D. C.__——____
97,615,000
Tonawanda, New York_—3,458,000
Union County, N. J
•
1,820,000

1961-2000

.

Sch.

Park

Western Municipal Water
•

California

•

Yorktown,1 Somers,

Etc.,

District,

*

15

! '

\

.

1965-1989

10:00 a.m.

1,100,000

1961-1990

2:00 p.m.

•

.

(Thursday)

School District No. 2, New York
♦Oklahoma

Noon

1961,1988 -• 3:00 p.m.
1961-1975
11:00 a.m.

Central

Elgin Local School District, Ohio
Huntington & Oyster Bay Central
.

11:00 a.m.

1,150,000

Dec.

•

•

'

.

School District No.-1, New York

■<"

1962-1991

\

___________

1,248,000

Noon

1962-1981
'

3,047,000

-

2:00p.m.

"1961-1990

City Improve. Author.,

Oklahoma

V

*A negotiated sale of

to

J.

underwritten

be

B.

Van

Ingen

however, due to
market
status,
but

little

trading.

The

been

Smith, Barney & Company Turn¬

45,000,000

—_i___

—

by

&

a

Co.,

-

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

Dec. 17 (Saturday)
University of Nevada, Nev._______

2,012,000

1962-1999*

Grand

Forks, North Dakota..

11:00 a.m.

:"V-

'

Dec. 19 (Monday)
2,815,000

Piqua, Ohio,1,000,000

■

'

7:30 p.m.

1963-1982

1962-1981

7:00 p.m.

''

'

Dec. 20
Dover

Kent

(Tuesday)

City School District, Ohio__
County, Michigan_____^____
v

>

.

Bath Local School

,

'•/-

1

-•

1,876,000

1962-1983

Noon

3,975,000

1961-1975

11:00 a.m.

1962-1931

Dec. 21 (Wednesday)

District, Ohio___

1,850,000

1961-1980

7,580,000

1962-1981

8:00p.m.
1:30 p.m.
Noon

14,173,000

1962-1998

10:00 a.m.

1,750,000

Jefferson

County, Kentucky
Richmond, Virginia
State Colleges of California
Teays Valley Local Sch. Dist., Ohio

;

1,760,000

Dec. 22 (Thursday)
University

of Indiana_______

Dec. 28
Co.

Metro.

Dist.,

Conn.

Junior

College

District,

11

2,300,000

1962-1981

9:00 a.m.

(Tuesday)

Angeles Sch. Dist., Calif
Jan.

2:00 p.m.

"
.

Jan. 10

30,000,000

—

—

(Wednesday)

California

95,000,000

Jan. 12 (Thursday)
Jackson County, Mich.___l_
1,750,000
Livonia School

1962-1971

(Tuesday)

Calif.

Los

10:00 a.m.

4,000,000

8,000,000
Jan. 3

Cerritos

1962-1999

1,715,000

(Wednesday)

—

investor attention. These issues in

New York

City, N. Y

issues, although, firm during
received relatively scant

years

a.m.

3,658,000

1,

Dist., No. 400, Washington._____
Housing
Administration,

New Mexico

the week,

3.30%

9:00

.na.*

.

1,000,000

Clover

The turnpike and other revenue

3.15%

>•

Noon '

County,

Hartford
Dollar Bonds Static

1977-1980

••

1963-1984

of 1%

1978-1979

'

Parish

a

to

3.15%

3%

3.65%

Rouge

Manhattan

3.15%

3%

won

Company, Inc., Salomon Brothers
and Hutzler, and A. C. Allyn &
Co.
The
bonds
were
priced to
yield from
1.90%
to
4.00%
in
V4

Asked

was

syndicate

a

1962-1981

1,000,000

N.- Y.

1,

Dec. 14

*

Fairfax

headed by The
Bank, Blyth &
Company, Inc., and K idder, Peabody & Company. Others in the
group
included Goldman, Sachs
by

Chase

No.

.

Wednesday

general obligation issue

District

Dist.

1962-1981

are

-

on

a.m.

'

bonds

awarded

9.00

1,000,000

.

from

priced
to yield from 1.60% to 3.25% and
it is reported that the issue seems
to be going fairly well, with about
one-third sold. '
;
•'
J
Also

'

Public

Goldman, Sachs & Company,

others. The

•.

1962-1980

25,000,000:

Boston

First

a.m.

\

6:00 p.m.
11.00a.m.

Pierce

on
that day the City of
Wilmington, Del., well known for
its
excellent
credit, awarded
$7,050,000 various purpose (1961-

1985)

11:00

-Etc.

Marion, Virginia ______^2___"

sold.

to yield

1962-1984

District, La.
i"_
*
Michigan (State of)________i_„_-_

to 3.35%. The issue is two-

priced

a.m.

3,500,000

1,200,000

Baton

East

included

bonds

a.m.

11:00

Wisconsin

C. J.
Devine & Company, White, Weld
& Company, Salomon Brothers &
Hutzler, and other dealers. The

were

sold.

Sch.

Commission

the group

&

Poughkeepsie,

Whitewater Joint Sch. Dist. No.

Mary¬

the group managed by
Dillon, Union Securities
Company and Halsey, Stuart &

which

10:30

1961-1990

-

_____.__.l___

Central

$12,500,000 ' (1962-1976)

Company

1962-1986

Union High.&ch. Dist.,

Wappinger;.,

Eastman
&

-Noon

7,000,000

Calif.

to

3%%

New Orleans, La

South Bay

"'y

1962-1981

California

,

^

3ys%

i_._

Calif.
Florida...
County, North Carolina.—
Los Angeles County Hospital Dist.

Com¬

a.m.

1,250,000
12,000,000

Coronado Unified Sch. Dist.,

Durham

Illinois

Continental.

Chicago,

11:00

(Tuesday)

Dade County,

of

Glore, Forgan & Company, Stone
& Webster Securities Corporation,

body

13

Noon

1,000,000

"

Dec.

>

.

aged by The First National Bank

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

New

v

to the group man¬

awarded

Township

1962-1980

1,995,000 -1962-1981
•
;
■

2,150,000

"

Dist., Calif— Local School J

District, Ohio

$5,900,000 Nashville, Tenn.

Corporation, Phelps, Fenn & Com¬

Delaware, well known for its
high
grade
credit,
awarded
$3,299,000
(1961-1980)
bonds to

3%%

__

Madison

various purpose (1961-1997) bonds
were

Idaho

Carmel Unified Sch.

being better
V
~
*'' ' "• 'V

Also

3%%'

Pennsylvania (State)
Vermont (State)

than

State of New

REPRESENTATIVE

(State)

___

is

1Q8^*

(State)

Connecticut

which body
criticized on

Authority

has been persistently

Rate

California

Boise Ind. Sch. Dist.,

yield from 1.60% to 3.35%. The

existis, in favor of an ex¬
pany
pensive tube system operated by; ties
now

issue

contribution made by the

to

issue

of

Authority

expressed

that

squeeze

as

against the underwriting problems
posed by the early new year's

About

po¬

will devolve
no credit to anyone. That political
leadership should stand by and
in effect sabotage the indispen-,
sable railroad-ferry facilities that
have easily handled through the
years many times the traffic that

for
that prevails at this

bond

tax-exempt

litical

Port

the

relief

tax

is being used in a

Authority

in

activity

annual

the

to

reasonable

District, Mich._____

4,440,000

________

;

1962-1990

10:00 a.m.
8:00 p.m.

Volume

192

Number 6010

.

.

The Commercial and Financial Chronicle

.

continue to be for many years to

Banks Must

Regain Role
As Private Credit Suppliers
Though earnings this year will reach record levels, Dr. Adams per¬
ceives a doleful future for banking in terms of
earnings and pf maintaining its role as an important supplier of short-term credit. The

Will have

What

Is

this

or

been

And here

deflated.

too

we

tary techniques instead of money supply contraction to thwart infla-

should avoid swinging to the op¬

tion, and ways to build up demand time deposits.

posite extreme. The danger of
creeping inflation in the Ameri¬
can economy has by no means dis¬
appeared.
Federal fiscal policies
and
the
wage-price spiral still
constitute a threat to the stability

excess

and

Dr. Adams claims

liquidity has been largely squeezed out of the banking system,

substantial

changes have occurred in business and consumer

liquidity position, which necessitate
and not

a

a

faster bank deposit growth

suicidal prolicy of further contracting banking.

of

chal¬

think there

lenging problems, then banking is
where you should be.
For this is
what the future of banking will be

eralizations

If

full
•

of:

and

rieties,

As

va¬

_

far less popu¬

it

used to be. To

ing

makstuff.
Dr.

E.

S.

Adam*

the

popularity
bank
deposits versus
other
liquid assets has been fading fast
of

the past 15-years.

On

basis, banking has been
clining industry, -a *.iid h.
poses

been

greeted

the

toward

these dangers.
On

the

other

hand, the strong
inflationary
pressures
produced
by World War II and the Korean
War have now run their course.

over-opti¬

considerably

1960's

In

deflated

their

some

tough

a

able

to

absence,

achieve

mew

a

."families

coming decade.

de¬

over

,

record number of

formed

the

over

i

prob¬

Can this trend be reversed?

If so,

how? If not, then how can
banking continue to perform the
important role it should in the
American economy?
And inci¬
dentally, what will banks do for
earnings?

significant that the foster¬
ing of econo m i c growth has
now become a major objective of
public policy, and in view of the
Soviet menace, it will doubtless

So the

key question is: What is

Treasury bills to savings and
loan shares.
The extent to which
the, banks will be able to share in
supplying; these
future
credit

the future of. bank

Ordinarily,

increase

and how

in

liquid

it is divided

This announcement is neither

Because,

clearly, if this trend
continues, the expansion of bank

an

assets

as

offer to sell

The

is

between

nor a

part of people's permanent invest¬
ment funds.
This
breakdown is obviously
unsatisfactory for some purposes.
However, it may be helpful in
analyzirlg what has been happen¬
ing to banking and in appraising
the future.
For

example, it

the past

over

seems clear that
15 years, bank de¬

posits have come increasingly to
consist of Purpose .Cash and Pur¬
pose Savings.
Years ago a large
part of our deposits consisted of
Excess Funds and even a goodly

deposits.

checking

we

like

to

Instead, for pur¬
analysis, I should

this

of

suggest

a

breakdown

way

needs

and

As

of

the

as

of both business firms
individuals for working bal¬
ances should grow too.
Also, as

incomes rise, an increasing pro¬
portion of the population can af¬

follows:

(1) Purpose Cash—Demand de¬
posits maintained because their

ford

regard them as necessary,
either as working cash or as com¬
pensating balances.

cation

down

money,

accounts will be moving up
income brackets where they
Will
have
reason
to
maintain

larger bank balances than they do
now. These larger personal check¬
ing accounts should have a prom¬

payment

ising

needed

but

as

of

which

short-term

Since 1946 bank
loans have tripled. This was pos¬
sible because the banks were su¬

per-liquid at the end of the war.
But now they are not.
Most of
their liquidity has been used up.
A large portion of banks' remain¬
ing assets not in loans consists of
untouchable
legal reserves and
untouchable pledged securities. If
deposit expansion continues to lag,

consoling

are

invested

market.

money

are

—

Per¬

in excess

some

amendment.

One

unconsoling amendment is

that the* working balances of cor¬

porations have been rising much
more slowly than the volume of
Continued

solicitation of an offer to buy any of these Debentures.

offer is made only by the Prospectus.

.

•

the commercial banks will hot be

'

$75,000,000
Southern Bell Telephone and

'

'■

■

Telegraph Company

% Debentures
Due December 1, 1997

Dated December 1, 1960

able to play

anything like the role
they have in recent years in meet¬
ing private demands for credit.

/

'

.

Interest

payable June 1 and December 1 in New York City

Think

of the
implications for
earnings.
Since
1946 the
operating expenses
has been inexorably upward.—up
almost 10% per year.
Until now
this has been offset largely by two
fortuitous factors: rising interest

bank

-trend

rates

of bank

and rapidly

portfolios.

Price 102.567%and

Accrued Interest

expanding loan

today these two
strongly
favorable
trends
are
changing. It is perfectly plain that
But

Copies of the Prospectus may he obtained in any State from only such of
undersigned as may legally offer these Debentures in compliance
the securities laws of such State.
with
'

bank loans and interest rates can¬
not

pace

the

.

possibly

the

continue to rise at
the past 15 years.
Hence, a squeeze on bank earnings
is now in the making.
;
of

,

plenty of prob¬
These and more besides. So,.
let's put another log on the fire
and
do
some
pondering about
them. And in.so doing, let us try,

Yes,

vve

have

MORGAN STANLEY & CO.

lems.

.

if

we

tial.

to search out the essen¬

can,
.

.

•

How Much Growth?
,

n

.
By way of a backdrop, let us.
consider briefly the environment

in

which

banking will be oper¬
First, how rapidly will our
economy grow;? Second, what is
likelv to happen to the level of
prices?
These
are
both questions
on
which there are several schools of

ating.

BLYTH&CO.; INC.

EASTMAN DILLON, UNION SECURITIES & CO.

HARRIMAN RIPLEY & CO.

LAZARD FRERES & CO.

KIDDER, PEABODY & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH

SMITH, BARNEY & CO.

Incorporated

STONE &

WEBSTER SECURITIES CORPORATION

WHITE, WELD & CO.

December 6,

I960.

DREXIL & CO.

DEAN WITTER & CO.

EQUITABLE SECURITIES CORPORATION
'

thought — not to mention a few
kindergartens/
Nevertheless,
I




GOLDMAN, SACHS & CO.

Incorporated

LEHMAN BROTHERS

I

thoughts

fortunately, however, they require

be

or

Purpose Savings and constitute

Thirty-Seven Year

coming

either

could

savings which

These

over

the years ahead.

the

and we should cherish them. Un¬

(4) Investment Savings
sonal

over

working bal¬

deposited with banks
in the

potential

years.

not

ances

ac¬

ing

(3) Excess Funds—Funds which
are

checking

important is the

the coming decade

into

va¬

money.

more

over

people already using check¬

many

tively small amounts for specific
reserves,

establish

Far

fact that

(2) Purpose Savings
Personal
savings accumulated in compara¬

rainy day

to

counts.

owners

purposes:

economy grows, it would
reasonable to expect that

needs

and

depositors

rather than the traditions of bank

bookkeeping,

specialty

our

seem

different, fourbased upon the

motives

the

More Work and Less Balance

mand and time.
poses

accounts,

of the commercial banks?

talk about two
main classes of bank deposits: de¬

needs will depend upon how large

this

7

come obsolete.
Nevertheless, the
public has in recent years shown •amount of Investment
Savings.
a
strong
preference
for
nearToday commercial banks are no
monies over money.
x
longer competing effectively for
The chief reason, of course, has these types of funds and
they have
been
the
recovery
of
interest been flowing elsewhere.
rates to more normal levels. This
Now the question is: What does
change is in all probability per¬ the future hold for each of these
manent, and we should .bear this four categories of deposits? First,
constantly in mind in analyzing what about Purpose Cash—needed

from

■

Alt is

;

loans will have to slow down

we

reasonable

force
is ad¬

there will be

rela¬

a)

tive

This

orators

vigilance

our

afford

cannot

The outlook, then, is for a rea¬
sonably stable price level and for
expanding; technology
substantial economic growth. This
vancing rapidly; and we are gen¬
.expansion will naturally generate
erating a large volume of sayings
large demands for credit.
It will
available for investment.
What is
also mean an increase in the pub¬
more, we have an unconditional
lic's holdings of liqiud assets—
guarantee from Cupid himself that
money and near-monies, ranging

bonfires

lems.

the

is

Nevertheless,

over

growth,

We

dollar.

relax

to

regard¬
reasonable degree

in the American
economy
the coming years. Our labor

be sure, we
seldom
see

of'the

gen¬

the

should be
price
in recent months.
So far the Six¬
stability. Moreover, we now have
ties haven't even gotten off their
u
balance - of payments problem
launching pad. This is disappoint¬ Hanging over our heads like a
ing but hardly cause for despair. sword of Damocles sharply re¬
There are still excellent reasons
minding us of the penalties of
for expecting substantial growth
failure.

is that money
has become

people

for

many

have

espe¬

than

a

useful

make

mistic expectations with which so

cially big ones.
One reason

lar

some

can

of confidence.

all

of

are

we

ing them with

chal-

lenges
sorts

with

dealing

like

you

bank deposits and money substi¬
tutes.

growth

only dormant? On
subject top, the exaggerated
.expectations of a year ago have

of non-mone¬

use

this

this

suggestions

improving management itself, the

of

rate

inflation?

about

demon dead

Federal Reserve to shrink the money supply further when it results
in a shifting into other highly liquid assets. Remedial
deal with

our

on

influence

be seen.
If well con¬ the outlook for bank deposits?
ceived,
governmental
policies Briefly, whither money?
clearly can encourage growth, but
Four Categories of Deposits
if poorly conceived, they may do
It
has
just the opposite. My own belief
been
suggested
that
is
that, despite some mistakes, money is becoming the poor man's
governmental concern with eco¬ credit card, and if .present trends
nomic growth
should prove on continue, we may run out of poor
balance to be beneficial.
people. - But even granting that
credit cards may have a glorious
How Much Inflation.?
future, money is not likely to be¬

•

*

much

remains to

former

banking association economist who recently became a banker
says We've reached a point where there's little justification for the

How

come.

By Dr. E. Sherman Adams,* Vice-President, The First National
City Bank oj New York, New York City

made

(2283)

on

page

28

8

The Commercial and Financial Chronicle

(2284)

&

DEALER-BROKER

Co., 42 Wall Street, New York

5, N. Y.
Business Investment

TO

THE

THAT

PARTIE8

INTERESTED

SEND

FIRMS

WILL

MENTIONED

Dixon Chemical Industries, Inc.—

Corporation.
Pittsburgh Plate Glass Co. — Review — Fahnestock
&
Co.,
65

Street, Los Angeles 14, Calif
Associates Inc._Report
Textbook Publishing Industry— —Meade & Company, 27 William
Analysis—with particular refer- street New York 5 N Y

Electronic
Broadway New York
N^Y
^lsoi®.
review of Food

FOLLOWING

THE

—

World, Holt, Rinehart &

Brace &

LITERATURE;

Winston,

Hill,

McGraw
Random

and

Hall

Prentice

House—Sutro

Bros. &

Co., 80 Pine Street, New
5, N. Y.

York
n—

Nickel Company of Canada, Inter¬

Co., 11 Marietta Street,
N. W., Atlanta 1, Ga.

'

to Crowell Collier, Harcourt,

ence

PLEASED

BE

Industry—B

11

u

t i

e

Courts &

Bank

Credit

Analysts

—

Gas System, General Cigar, United

Steel Companies of Great Britain.

Monthly

Growth

appraisal of economic conditions
the U.
S. A. as they affect

business
Bank

the

and

Credit

brook

stock

market—

Street,

West,

Canada—$100

per

Montreal

&

reau

Discussion

—

in

investment letter—CarCompany, tl5 Broadway,
6, N. Y. Also available

New York

680 Sher-

Analysts,

Leaders

monthly

in

is

2,

bulletin

a

Yorker

New

on

Magazine, Revlon, Simplicity Pat¬
tern, Von's Grocery
and
Winn

year.

Bank

Stocks—Quarterly review—
Wall
Street, New York 5, N. Y.

*

*

BruT SemanMe™dUn?Ii

Broad

Co.»

Stock

Bank

Notes

Circular

—

—Hemphill, Noyes & Co., 15 Broad
Street, New York 5, N. Y.

on

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

Market

Review

—

—

Japanese
Yamaichi

New

York,

Hanseatic

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

Stock

Common

issues

—

Equitable

Ferro

American

Reiki

Stock

available

New

Yawata Iron

Steel;

&

tomo

Hospital

Limited

Chemical;

Chemical

Y.
of

Steel; Fuji Iron &

(elec¬

tronics); Kirin Breweries;

Cable

is

memorandum

a

011

3ajrd

&

Avenue

Air Products

Inc.

Sumi¬

and

Penick

&

Ford

,

Depressed
Walston

Stocks—B

&

11

u

e

t i

n—

and' Company, Incorporated,

Weil

Woodward

Building,

Co.
N

Distilling

&

Co., Inc., 74 Wall St.,

Libaire, Stout &
Broadway, New York 4,

50

California

3932 Wilshire

Machine

Analysis

Bache

New

Company,

are

bulletin

seven

speculative

scientific

know-how

on

with

stocks

report

a

Oil

Aviation.
Electric

Carl

Utilities

particular
Mohawk
fornia

—

Power,

Southern

Tampa

Cali¬

Electric,

Bulletin—

—

the

the

used

counter

Index

—

up-to-date

an

Averages

listed

in

and

the

the

industrial

National

Folder

compari¬
industrial

Data

-

Co.,

over-the-

stocks

used

Quotation

in

Bureau

both as to yield and
performance over a 20period — National Quotation

market
year

rencies

Bureau,

Inc.,

New York

46
Front
4, N. Y.

York

Primer

State

Gold—Discussion in current issue

lation—Published

of

Merrill

Bankers

Lynch, Pierce, Fenner & Smith,
Incorporated, 70 Pine Street, New

Bankers

Company, 55 Broad
15, N. Y.
"Investor's

York

5,

issue

are

Howell

Reader"

N. Y.

Also

—

in

discussions

Company,

Trust

Street,

the

of

New

on

Street,

&

Selected

International

Securities Regu¬

by

Investment

Association—Investment

Common

&

120

International

American
the

Air

brief

Freight

Stock

Bank

Building

corporation

financial institutions

Primary Markets In:

Mo.

Greater Wash. Indt'l Inv., Inc.

Growth Capital, Inc.

*Mid-States Bus. Capital Corp.

Equipment

and

of

available

Also

randum

is

a

memo-

G. E. M. International

on

Foods

December

Hayden,

Street,
in

New

&

Letter—

25 Broad
5, N. Y. Also

issue

Co.-and

in

Co.,

York

same

Martin

Review

Investment

Stone

the

—

data

are

Puritan

on

Sports-

s—

Corp.—Analysis—

L.-F.-Rothschild &

Narragansett Capital Corp.

Florida Capital Corp.

Techno Fund Inc.

Franklin

Virginia Capital Corp.

Boston

Packing

Report—

—

Colby, 31 Milk Street,

9, Mass. Also available
Gruman

on

Bakeries

are

and

Railwav
Railway.

—

Associated

Memorandum—
Securities

Co.,

Fer

Mines

on

Request

Member New York

Security Dealers Association

Trinity Place, New York 6, N. Y.
Teletype NY 1-376; 377; 378

Sperry Rand — Memorandum —
Laidlaw & Co., 25 Broad Street,
New York 4, N. Y.

Ltd.—Analysis—

Com-

Bissell &

120 Broadway, New York

Northwest Company

1000 Second

Avenue Seattle 24, Wash.
Lancer Industries, Inc.

—George, O'Neill &

—

of

same

Peoples

circular

Gas

and

Quaker Oats.

,

Co., Inc., 30

Broad Street, New York ^N- Y.,
W.

Gulf

Lay

Sulphur

Co.—Data-

Schirmer, Atherton & Co., 50
Congress Street, Boston 9, Mass.
Also available are data on Ionics,

Inc- and CraiS Systems.,

Johnson,

&
Co. — Analysis —
Lane, Space and Co.,
Inc., Florida Title Building, Jack-

Thatcher Glass Manufacturing Co.
—Analysis—Purcell
&
Co.,
50

sonville 2, Fla.

Broadway, New York 4, N. Y.

Martin

Tokyo

Company—Analysis—Rob-

Marine

Fire

&

,,

Insurance

Sons, Garrett Building> Baltimore 3, Md.

Co., Ltd.—Analysis—Daiwa Securities Co., Ltd., 149 Broadway,

Metro Gold

New Yo^ 6'

Mayer—Review-

ctern

Frank

gter£'

B*7

Union

Mever &■ Fov

l^ An^

*ullding> Cos Angeles 14,

*

Qk.

E,ectric

Toyo

^ftro Goldwyn Mayer—Report—
c+ve^S°XT
^ S°"'v Y?

Also available

are analyses of Sony Company,
Tok^ Shibabra Electric Co., Ltd.,
Co.

Shibuilding:

Ltd"

.'

United

New York 4,

Also available is an anaiy-

•

Co.,

Chemical
Co.,
Pharmaceutical In¬
and Koyo Seiko Co.

.

Hill

Keno

Draper
25

I

?

Sumitomo

*

Metropolitan Broadcasting Corp.
— Analy:sis — J.
R. Williston &

||

Co

Ltd.,

Engineering

&

•?Vn?eW
\
Ltd., Takeda
--Yf1 a„
^,e re?°« iS1 013,
] dustries, Ltd.,
Morrell & Co. and Atlas General Ltd
nauslries-

Ltd<>

Mitsubishi

Industry

Rayon

E,obje

Adeiaide

rontQi

Qnt

abje

A

n a

street

i

v s

s

Ltd>

West, ToAls0 'avail.

Canada/

_

1

CompanY

&

Becember "Blue Book"

sls 01 Kolir Aircraft.
containing a resume of 29 Gold
Miles
Samuelson — Review — stocks, 11 Base Metals, and 10 Oil
Stearns & Co., 72 Wall Street, & Gas issues.
New

York

same

5

issue

are

Y.

N.

data

Also

the

of

Eldon

on

Moore Products Co.

—

the

in

Gutman

Let-

Industries.

Analysis—

Pennsylvania.

Utah Construction & Mining

pany—Analysis—W.
Co

#

N.

Y.

Com-

Hutton

E.

&

14 WaI1 street> New York 5>
P

vitramon, Inc.

Memorandum —
& Co., 37 Wall

—

Porges> singer
Street, New York 5, N. Y.

Morse Electro Products—Analysis Weinjrarten Market* Realtv Co—
—Irving Weis and Company, 40
Memorandum—Moroney Beissrier
Exchange Place,
New
York
5, I ^
Vnrk
York.

'

S 01 ine oUUUiwehi
Moroney ueissner
£5dnK

Building, Houston 2, Texas.
New

York

Central

Railroad

—

Analysis—H Hentz & Co., 72 Wall
Street, New York 5, N. Y. Also

Anc.lv

rnmnonv

t

y

Hornblower

Wall

Street

Xw

40

Weeks

&

York

5

Y

N

^y°nA^

—rble

road Merger opportunities.
American

Company

—

Merchandising

Analysis

Ocean Drilling

&

Memorandum

—

Parker,

Inc., Vaughn
Texas.

Pacific

National

-n

n

-i

TY

T7

.

ii/QmOnQS

lO

Be V

Pttti

•

.1

.

*1

i

Ol ChaCe WhlteSldG

Exploration Co.
—

R.

W.

Press-

Life

Co.—Memorandum

Insurance

Schwabacher

&

%

BOSTON, Mass.—Effective Jan. 2,
William J. Edmonds will become
a Vice-President of Chace, White-

side & Winslow, Inc., 24 Federal
Street, members of the New York

Co., 100 Montgomery Street,
San Francisco 4, Calif. Also available is a memorandum on Purex
Corp.

and Boston Stock Exchanges.

New

Paterson Dental Supply Co.—Re-

formed with offices at 117 Liberty

Survey — Abraham & Co.,
Broadway, New York 5, N. Y.

port—The Milwaukee Company,
207 East Michigan Street, Mil-

a

Cities

Service

Company—Analysis—Green, Ellis & Anderson, 61
Broadway, New York 6, N. Y.
.

Coca
York

120

analyses of Techni-

are

Broadway, New York 5, N. Y.
Texas

Analysis

York 5, N. Y.

reviews

the

Wachovia Bank

?

,

—

in

Com-

and

Operations, Inc., Southern NiInternational Telephone & Tele- trogen Company and Spur Oil
§"raPh—Review—Ira Haupt & Co., CJompany.
;
111 Broadway, New York 6, N. Y. Texas Gulf Producing — MemoJantzen,
Inc.-—Report—Pacific randum- Pershing
& tCo.,
120

prich & Co., 48 Wall Street, New

Also

Ziegler

& Companyj Inc

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

C.

Analysis Building, Charlotte 1, N. C. Also

—

Cities Service—Review—Hirsch &
Prospectus

TROSTER, SINGER & CO.




—

—

Broadway,

70 Pine street. New York 5> N- Y-

Ford & Company,
Building, Dallas 1,

are

74

Hazeltine Corporation

Cincinnati Milling Machine

Meeds,

Memorandum

—

.

North

N.

HAnover 2-2400

Report

member Market Commentary.

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

5> N- Y*

—

—

Broadway, New York 4, N. Y.
Sheraton Corp.

SSSS S^daSe^S^d^
ocfVaSdasRepubiic Nationai
Can

Bulletin

General Plywood—Bulletin, Win- pany, Security Building, West
sl°w> Cohu & Stetson, Inc., 26 Bend, Wis.
Bioadway, New York 4, N._Y. Xelechrome Manufacturing Cor? av.ai J3
*s the ^rm s De~ poration—Analysis—R. S. Dickson

New
i\ew

Taggart
Inc.

Union

Dallas

Aircraft

paay-Anaiysis-Laircl

Corp.

Co.

Co^l20 Broad- Charles A. Street, Philadelphia 2,
Taggart & Co., Inc.,
1516 Locust

Emanuel,
Electronics Int'l Capital Ltd.

Denver

New York 5, N. Y.
S.

—

4^I«th, 2

American Oil Company of Texas, letin—B.

ter

wear.

Capital

Corp.

-

Freehling, Meyerhoff &
South La Salle Street,

Beane, 2 Broadway

I»c.

Campbell

Electronics Capital Corp.

indus-

Fourth

Southern
soutnern

SMALL BUSINESS INVESTMENT COMPANIES

Chemical

Harris, Upham & Co., 120 BroadNew York 5, N. Y.
Also Synod
of
Washington
of
the
available is a report on General United Presbyterian Church—Bul-

a

America—Survey
Richter Company, 320
Street, St. Louis 2,

Scherck,
North

reports

Capital Corp.

major

12

and

tries.

Boston

Brochure—Carl M. Loeb, Rhoades

For

Bowling,

Industry

of

survey

.

Schering

Wis

1

&

ert Qarrett &

Analysis

—

44 Wall St.,
5, N. Y. Also available
analyses of Peabody
Coal,

are

Gerald

Capital Corp.

15

Borden

on

New York

California

Continental

Company,
data

aie

Company and Duffy Mott.

way,

Boston

Climax—Data—

;&

Street, New York 5, N. Y.

Also available

Beatrice

Association, 425 Thir¬
teenth Street, N. W., Washington
4, D. C.

same

Bell

Metal

Ristine

avatlable"re

Also

way,

vII.

P.

Dow-Jones

35

Averages,

Quotations—

shillings and pence, and
quotations on 182 foreign cur¬
Manufacturers

1961

between

stocks

Table of

&

Company

son

try—Analysis—Dreyfus & Co., 2
Broadway New York 4, N. Y.

Deere

Portfolios for

and two

Shields

for

showing

Casualty Insurance Indus¬

Wall

36

N. Y. Also
analyses of

and

Busch

Over-the-Counter

Edison—Thomson & McKinnon, 2
Broadway, New York 4, N. Y.

—

chart

Anheuser

Company, 16 Wall
Street, New York 5, N. Y.

Union Electric, Cleveland Electric

Exchange

&

Bankers Trust

Illuminating, and Commonwealth

Foreign

Pforzheimer

5,

Outlook

Niagara

to

H.

Memorandum—

Co.

Carbon

American
F.

Broad

Koppers.

—

1.961.

York

are

Foundrv—

&

&

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

Survey with

reference

Edison,

Fire &

Companies

American

on

Metal Climax and

North American

on

Also available

memoranda

'

American

Street,

Investors,

Boulevard, Los An-

geles 5, Calif.

i'

BrakC

Wisconsin

East

—Penington, Colket & Company, available

••'•••

Laboratories, Inc.—

n

Analysis

:v

* *"• *

,'

y.

America

Columbian

New York 5, N. Y.

Analysis—

King,

available

is

Washington

5, D. C.

Rayon;

Co.

New York 5, N. Y. Also available

Cola^Analvsis—

Pensi

Allefrhenv

Money Supply—Analysis—Francis
I. du Pont & Co., 1 Wall Street,

Ltd.,

Massey-Fer-

Harvester,

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

Dynamics

no

Milwaukee

Gardner

and Cockshutt Farm Equip-

memo-

_

n

fordTcoHn

green.

ment.

a

St. Regis Paper—Data—Cooley &

M

Co., Inc., 1 Wall
5, N. Y. Also available
surveys of Deere & Co., Inter-

guson

is

Chicago 3, 111. Also available are Treves & Co., 1475
Street^ data on Philips Lamps and Wahl- New York 36, N. Y.
A

Report

Sekisui

Toyo

Oil Company;

c0

Machinery

New York

national

available

Dtaers' Club.

on

.WfrlboR'-"tropeR^n rol
Food

Ine.-Analysis-Hill
Richards & Co., 621 South Spring
Street, Los Angeles 14, Calif.

Corp., Ltd. — Analysis —
William R. Staats & Co., 640 South
Spring Street, Los Angeles 14,
ra„dum

Street' B°St°n 2' ^

Air Products

Co.

Corp.

General

Inc.

a

Ltd., 61

York 6, N.
analyses

are

Hitachi

Toanenryo

and

Survey

—

Street,

Corporation — Analysis—
Moseley & Co., 50 Congress

S.

Great Northern Paper.

American

Ltd.

Market

available

Supply Corporation, General

Corp.,

Co.

In¬

Yamatake

Securities Co.,

Broadway,

short-term

capital gains — Bulletin — Oppenheimer, Neu & Co., 120 Broadway,
New York 5, N. Y. Also available
on

Metal

and

are

&

Broadway, New York 6, N.Y. Also

Eisele

Japanese

Also

data

New

New

Sumitomo

Honeywell

Lim¬

Depressed

are

of

Ltd.

—Nomura

for

Co.

e w—

Broadway,

Ill

of

ited, 60 Yonge Street, Toronto 1,
Ont., Canada.
Issues

i

e v

6, N. Y. Also available

analyses
dustries,

Canadian

on

Brokers

R

—

Securities

Inc.,

York

Comparisons—

Comparative figures

Market

Broad

aiu-n>.

Philadelphia 9, Pa.

*air olores' 1UC*
Purex

Street

-

are

Investment in Education—Review

AlhertTHlfr

!

F.

Kidder &

Dixie Stores.

M. A. Schapiro & Co., Inc., 1

*

i\fa'n„faef„rine

Memorandum

national Rectifier Corp., Columbia

Aircraft

waukee 2, Wis. Also available is
a
report on American Greeting

of the

survey

Report—Mackay & Company, 524
Washington Street, Reading, Pa.

Bulletin

—

Tegeler & Co., 210 West Seventh

AND RECOMMENDATIONS
UNDERSTOOD

Thursday, December 8, 1960

Com-

pames

INVESTMENT LITERATURE

IS

.

Dempsey-

Small

IT

Also available is a
Nickel Plate Road.

.

.

Cola
—

Bottling

Co.

of

^

rorm
j

J. Laurence Lo.

Laurence

&

Co., Inc. has been

St., New York City, to engage in
securities business.

ir* V'

f Mf

tijrf'' L|- rtrt'k.

Volume

192

Number 6010

.

.

The Commercial and Financial Chronicle

.

holders

The Backward Art of

Ira

U.

often

Cobleigh, Enterprise Economist

neglected by
to

friendly

newsletters to

and

progress

article

This

is

the

shareholders

result

which

the

and

sudden the clippings and ar¬

a

ticles

I'd

in

accordion

type catchall for

delivered

a message

an

years,

It

been

squirreling

away

to

me.

this: That despite our cor¬

was

and
of

the

bore

caption, "In¬
forming Corporate Partners." All
of

informing them

stockholder communications.
for such managements that
this article has a particular mes¬
sage — the message that correct
of,

It

is

genius for efficient, auto¬
production, smart packag¬
ing,
swift
transportation,
sleek
advertising and impact selling, we

In general people

when
cash

of stockholder relations.

field

this

Consider

Chairman
nowned

Board

of

the
re¬

a

you'd instantly
recognize: "I know we usually
send
something
out
to
stock¬
holders four times a year, but this
company

quarter we lost money. So tell
nothing!" This Neanderthal

'em

of executive candor

gem

in

uttered

1890,

the

spotlights

in

but

was

1959!

of

theme

not
It

this

article; that in hundreds of cases
stockholders,
even
in this en¬

of People's Capi¬
talism and of "togetherness," are
told just as little as possible, and
not treated as eager, interested and
intelligent business partners en¬
titled
to
know
the score,
and,
with the slightest encouragement,
eager to be company ambassadors
lightened

age

and avid salesmen.

True,

number

a

have been doing a
this

liaison—

of shareholder

area

such

of companies
splendid job in

companies

General Elec¬

as

other

some

more

attractive.

these
tween

will

points

few. But

companies

a

utilities, to name
myriad of other

have

simply

themselves to

dated

an

not up¬
apprecia¬

of

the

facts

holders

are

partners and entitled

tion

(1)

that stock¬

between

For

expansion (4) that contented (and
informed) stockholders are likely
to hold their stock indefinitely,
thus

and

by

(by

not

liquidating or

more) strengthen the
in the company's shares.

buying

market

share markets benefit
stockholders are de¬

Buoyant
everyone

—

when
their issue is
a
"market leader"; corporate pres¬
lighted

tige is enhanced by higher price/

earnings ratios; and higher share
prices make the raising of addi¬
tional
capital
easier
and
less
costly.
Why
If

and

contented

to

stockholders

tend

their

through

shares

informed,
hold

onto

thick

and

thin, then what are some of the
why shareholders, aloofly
treated, may sell their stock even

corporations
that taking

found

is

good business. Treated thus,
shareholders are unlikely to sell,

for

two

decade

a

this company had

several

smaller

it

and

and

then, for
still. Why? Be¬
acquired

stood

years,

cause

and

be

to

units

often

increase their

and

to

their

appropriate contribu¬
tion to the cash register. The com¬

make

pany,

tersely

in its periodical reports,
announced these various

acquisitions. It failed, however, to
describe the major long term upthrust in earnings these additions
would
make
possible; and
it
failed to say

that 18 months would
to fit them into the

needed

stream"
What

earnings

an

on

them

put

and

"on

of

the

established
years

and

they're

proud of. A happy stockholder is
a

corporation's

best

friend!

sonnel

CLEVELAND,

members

cated

consisted

of

three

the

New

the
per¬

people

in Charlottesville and sales

The

firm's

bonds,

of

scope

the

operation

brokering of stocks
mutual

funds, U. S.
obligations and mu¬
nicipal bonds. In addition to its
brokerage activity, the firm is a
principal underwriter of bonds of
Virginia municipalities and coun¬
and

other

corporate

York

Exchanges,

on

sub-political divi¬
as

par¬

number of national

a

and

G.

Ernest

Chairman

municipal

Thornhill

the

pf

be

of

the

Thomas

corporation.

H.

William

Thompson Tomes has been elect¬
ed

to

the

Vice-Presidency.

Montie
elected
Elmo

Smith

R.

Treasurer,
Stevens

Betts, Borland
To Admit Partner

elected

Miss

Barbara

CHICAGO,Til.—Betts,

been

elected

has

has

been

Charles

and
been

named

Secretary.

Ill

members

of

the

Midwest Stock
1

New

Street,

York

Exchanges,

will admit Hugh J.

nation's

the

of

one

stock

brokers, will

orate

Goodbody &
largest

new

open

ard

J. Paidar, resident partner in
charge of the firm's Chicago of¬
Oilman, General
Manager of The Mart.

fice and by W. O.

The new Goodbody & Co. facil¬
ity will be the only stock broker¬

office

age

It

in

The

Mart

will

make

available

was

company

sold their shares. If

slipping

42

serves

offices

in

major

James

rently

V.

Martinello, Jr.,

in

heights

in the Downtown office of Good-

body, will
offices

by

a

manage

and

he

staff

rienced

in

vestment

will

of

the
be

new

personnel

on

and

phases of the
brokerage business.

Goodbody & Co., which

tionally known for its
investment research, is

where

cases

earnings

badly and dividends are
reduced
or
suspended,
share¬
holders
won't rush to liquidate
their
some

if

holdings

they

Jan.

O'Connor to

brokerage
States.

Its

of

Goodbody
North

in

Chicago

LaSalle

Assistant

This announcement is not

Assistant

Rejoins Dempsey-Tegeler

Secretary.

(Special to The Financial Chronicle)

F.

N.

ANGELES, Calif.—Lauretta
Savory has rejoined the staff

of

CHARLOTTE,
Kane

has been

of Thomson &

C. —Mark

added

A.

the staff

to

McKinnon, Liberty

Dempsey-Tegeler & Co., 210 W.
Miss Savory has re¬
cently been with Mitchum, Jones
& Templeton.
Seventh St.

an

ojjer oj securities jor sale

or a

solicitation oj

an

ojjer to buy securities.

New Issue

December 8, 1960

$40,000,000

Potomac Electric Power
First

Company

Mortgage Bonds, 5% Series due 1995

corpo¬

in earning power may
expected in due course, and
is working res¬

that management

olutely

Price 100.827%

to that end. Dumping'of

by disgruntled holders can
contagious 5and cumulative
deterioration in share prices.

stock

plus accrued interest, if

cause a

times or in bad,
financially important to keep
corporate messages flowing to
stockholders. Regardless of corpo¬
Thus, in good

it's

rate

size,
about

the
new

any,

from December 15, 1960

may be obtained Jrom such oj the undersigned (who are among
the underwriters named in the prospectus) as may legally ojjer
these securities under applicable securities laws.

Copies oj the prospectus

the

partners like to
plants and prod¬

ucts,
fine earnings and bright
prospects; and they'll remain loyal

times, if they're
and treated with

Dillon, Read & Co. Inc.

Lehman Brothers

in less prosperous

advised

kept

frankness and

sincerity.

Eastman Dillon, Union Securities & Co.

Stone & Webster Securities Corporation

reasons

earnings are satisfactory
dividends
maintained? The

though
and

to that goes

answer

back to basic

Companies

member of the club. If a
gets
nothing from
management except two or three

panies
through

a

stodgy letters in the course of a
and an annual report thai;
lawyer coud read, or an
understand,
he may

year,

only

a

accountant

lose

interest

sell

his

likely to do
whose

in

stock.
so

ters

is

newsy

report

he

holds, send him
progress

throughout the year, and

annual

and

if other companies,
he

shares

friendly and

the company

Particularly

narrative




let¬
an

in style

for companies whose

profitable)
securities

team,

Johnston, Lemon & Co.

stockholder

rapport is not only desirable (and

psychology. Everyone likes to feel
he
"belongs," that he's on the
shareholder

Public

Going

This achievement of

market,

have

(underwriting, com¬
pany
stockholders suddenly ex¬
pand from a dozen to perhaps
several thousand, the problem of
comprehensive stockholder com¬
arises

for

the

first

time.

subscribers to the
new
offering are fully informed
about the company at the time,
via

the

Baxter &

Company

Alex. Brown & Sons

Coffin & Burr

Folger, Nolan, Fleming- W. B. Hibbs & Co., Inc.

Incorporated

E. F. Hutton & Company

W. C. Langley & Co.

J. Barth & Co.

Riter & Co.

Halle & Stieglitz

Spencer Trask & Co.
H. Hentz & Co.

course,

prospectus. But after the issue

"out" for a year or so,
and the animated early trading in

has

Auchincloss, Parker & Redpath

an

munication

Of

L. F. Rothschild & Co.

Ladenburg, Thalmann & Co.

long been on the

it's vital for com¬
"going
public."
When,
but

been

issue

has

subsided,

stock¬

at

Vice-President.

Faye Hawkins has

surgence
be

are

Street.

slump is temporary, that re¬

rate

na¬

extensive

the firm in 1891. The main offices

One

Life Building.

partnership.

given

are

the

that

assurance

is

in¬

one of the
houses in the
headquarters
are
at 2
Broadway, New York
City. Its managing partner, Harold
P; Goodbody, a frequent visitor
to
Chicago, is the grandson of
Robert Goodbody, who founded

oldest

United

Thomson & McKinnon Add

and

off

expe¬

all

that later materialized.

in

Even

fall

Mart

supported

would

earnings

cur¬

registered representative

a

LOS

have held on and awaited the rise
new

now

cities

throughout the country.

they had been

informed they

effectively

and

cus¬

Goodbody wire system which

stopped expanding, concluded that
the

to

tomers north of the Chicago River
the
extensive
facilities
of
the

basis.

holders, noting that earnings had

will

and

early in December.

open

the result? Many stock¬

was

elab¬

an

brokerage office in the
Main Lobby of The Merchandise
Mart, it is announced by Leon¬

Miss Elizabeth Butzner has been

Borland &

Salle

La

Sputh

—

Co,,

bond

will

Board

Wyllie will be President.

partnership.

Co.,

CHICAGO, 111.

government

underwritings.

Jan. 1 will admit Robert T. Blaine
to

Wyllie
At

offices in Lynchburg, Orange and
Winchester.

Ohio—Ball, Burge

of

H.

Thornhill.

has now grown to the num¬
ber of 18 with the home office lo¬

ticipating in

Union Commerce Build¬

and Midwest Stock

Thomas

Ernest

10

and

new

ing,

was

Charlottesville

sions of Virginia as well

To Admit Blaine
& Kraus,

liabilities

and

beginning, the firm's entire

ties

Ball, Burge

in

by

ago

G.

and

company

assets

Wyllie & Thornhill, which

holdings.

products, the services and the

corporation will take

new

all

the

securities of the

by merger,
for these new

assimilated,

The
over

Wyllie & Thornhill, Inc.

as

includes

ones

time

took

known

They become eager salesmen for

;•

,

example—a major company
an
upward earnings

hear

Sell

Stockholders

successful

have

(5)

and

shown

had
trend

dividends

,

on

management

values.

rate

to

products, service and securities
(3) that stockholders are a major
reservoir
of
capital for- future

But

and a
shareholding partner can do much
to keep the latter from selling
his
stock
and, to that extent,
causing a deterioration of corpo¬

is

informed, whether the news
or bad
(2) that stock¬
holders can help sell company

most

doing, are
best managed

Ef¬

—

1, the firm of Wyllie
Thornhill, 205 East Market St.,
will
be
incorporated
and
be
&

are

proper
liaison and candid communication

to be

good

of

influence

sell.

to

(4)

(2),

organization

a

two

on

little

have

decision

the

on

Now

relationship be¬
management and the stock¬

be

but

and

what

they
forever. The

gone

points the

Franklin Life Insur¬
ance
Company,
Marquette Ce¬
ment, United States Steel, DuPont,
and most major

the

in

stock

general price range appears

tric, W. R. Grace & Co., American

Cyanamid,

holders

stockholders into their confidence

holder

from

memo

the

of

Fiskc,
or
an
Insull could run a public
corporation like a private satrapy
and without telling their share¬

(4) when there's a drastic decline
earnings or reduction in divi¬
dends in a particular
issue (5)

in

same

in the

on

CHARLOTTESVILLE, Va.
fective Dec.

a

today

when

era

need money (2) to
a
profit (3) in times

they
in

sell stock (1)

Gould,

a

of international crisis and tension

mated

still in the ox-cart

prestige.
The days when

9

Wyllie & Thornhill Goodbody to Open
Now Corporation
New Chicago Br.

rate

its description

in

panoramic

enhance

can

corporate values and build corpo¬

plans,

corporate activity.

porate

are

the

of

profitability of their company.

end product of cleaning out an old
file

frequent and

more

a

closely held company and with
no
experience in, or appreciation

shareholder relations

Pointing out th3 desirability and the need for

a

accustomed

management

Stockholder Communication
By Dr.

are

(2285)

Robert W. Baird & Co.

The Ohio Company

Incorporated

Schwabacher & Co.

William R. Staats & Co.

nJiwwiKfWWttWP tw^i

10

The Commercial and Financial Chronicle

(2286)

Board,

Our Gold Reserve Ratio
on

of U.

Treasury

nongold

all

to

stock

S.

money

gold
and

deposits stood at 6.8% as of

bank

Oct. 26, 1960.

deposits

Nongold money and

com-

•

deposits

prise

of

notes

and

Federal

banks,
demand

net

time

and

other
and

de¬

of all
banks,

posits

out¬

yeany

yearly ratios for the period 19158.6%.

was

1920, when the ratio of \ our

monetary gold stock was down to

(average monthly), eight of
12
Federal
Reserve
banks

6.7%
the

paying tax penalties because
of deficient reserves. Some of the

were

rates were
May. 1920,
6% and 7% to preserve the re¬
rediscount

principal
raised
to

serve

structure

and to

the

of

use

restrict or

Federal

Re¬

A partial con¬

bank credit.

the economic con¬
traction from April, 1920, to July,
1921, as measured by the Reserve
Board's
index
of production
in
basic
industries, and a fall in
sequence

was

prices from May, 1920, to June,
1921, as measured by the Board's
index of wholesale prices.
With
as

of

a

large

gold stock ratio of 6 8%
30, 1960, the Federal
had a relatively

Nov.

Reserve

same

of Federal Re¬

reserve

of $6,113,-

000,000. This would (theoretically)
permit the Reserve banks to add
$24,452,000,000 to their notes and
deposits (of $45,989,000,000 as of
Nov. 30) before the reserve ratio
would be reduced to the required

notes and Treasury currency

serve

outstanding remained unchanged,
of

ratio

the

Treasury

gold stock

(reduced from the $18,552,000,000
for the week ending Oct. 26, to

$12,439,000,000), to nongold money
and bank deposits would stand at
Apparently, considering the var¬
involved, a ratio now of
5%
of monetary
gold stock to
nongold currency would compare
with
approximately 7% during
the period 1915-1932.
iables

These ratios have limitations in

value because

they do not recog¬
psychological reactions
people, governments, banks,
the

nize
of

and other institutions when

credit

extended and central
bank and gold reserve ratios are
is

greatly

falling.. Even with our relatively
large surplus reserve in the Fed¬
eral Reserve banks, we have been

gold

losing

Feb.

since

a

possible

disturbing

rate

1958, and there

discussion

much
and

at

19,

of

the

future

is

present

value

and

status of the U. S. dollar.

this

20,

of time

period

one

with

another.

been

inclined

may

5%

ratio.

The

to

buy

securities.

The

an

offering

offer to sell nor

is

made

only

a

by

This

able

23,

1960

rency;."'.'.'

1,949)
at

was

its

would

—probably
from

be

the

to

should

lift

ratio

our

gold

our

government

dollar.

of

tion
as

fall

to

level

low

a

non-gold

a

the* average
use

with

2.52

was

The

3%.

allow

is

may

legally

by

those persons to

as

percentage of

a

stock

was

distribute the

Offeriiig

the

was

net inflow

a

heaviest

flow

to

the undersigned

Circulars.

Hauser, Murdoch, Rippey & Company

Bala Williams & Company

Wm. B. Robinson

Aetna Securities Corporation




of

of

the

unsound

except

tion of

insti¬

serve

Should

Reserve

Not

Do

To

elaborate

more

time available

for

turning

path of economic, mone¬
tary and fiscal sanity to save our
dollar would appear to be rela¬

tively short. Nibbling at the prob¬
lem,

as

we

have

such efforts

seen

expected
monetary problem
in any effective or lasting man¬
ner.
The urgent need now is for
up

to

date,

to

solve

cannot

be

our

institution of the proper and nec¬

correctives; and the serious
question in this respect is whether
essary

do

bank

would

so

have

positions

enough

in strategic

men

who recognize the

rectives

needed and who

will put

cor¬

and

them into effect.

can

re¬

requirements should not be

reduced.

or

instituted.

the

we

Federal

dollar if such programs

,

Things We

(1)

are

The
to

clearly and directly
military strength. Gov¬
spending
to
maintain
high domestic prices also should

Some

us

our

continued

ones

those

terminated.

which have finally
face to face with a

heavy loss of gold or the ruina¬

of

uses

of

•abandonment

and

programs

brought

and

•

gold to

which

dollar

our

the

much

us,

of the very old .lessons

one

monetary history. The choice
now
is between preservation of

time

more

release

cause

for 1949, and the 10.4%

of

our

weaken

be

to

rency.

anyone

to

state

with

bases

the

for

already

inadequate

confidence in

our

cur¬

to accuracy just how

as

gold

a

reserve

ratio

(2) Our dollar should not be
be< devalued again since that is coin
w^en • clipping or counterfeiting; and
If for¬ that would be a thoroughly dis¬

is

to

be

when

instituted.

nation- institutes

a

tions

t>e

after

rency
course,

counted

because

the

while the

people

irredeemable
to

a

cur¬

Of

reaction,

living under

currency,-

redemption.

If

our

over-extended

is

currency
terms of

national

nation's

a

and

on

govern¬

credit

is

so

the

non-gold
depreciated
in

so

is not

Conse¬

ful

choice

flation

is between

of

the

radical de¬

and

currency

devaluation of the standard

doctors since the reversal

psvchology

practically

is

prompt

universal

as

;

tary

unit.

not in

has

The

United

mone¬

States

is

this position; but the time

clearly arrived when

corrective

taken,

proner

to'be

need

measures

and

and

soon

as,

recent

gold

promptly,

(3)

speculative

on

SCRANTON, Pa.—On Jan. 2, J. H.
& Co., Scranton National
Building, members of -the

Brooks
Bank

Stock

York

New

Walter

admit

Exchange,

A.

will

and

Wolf

F.

Philip Christian II to partnership.
Mr. Wolf will make his headquar¬

as

is

the

illus¬

We

London

should

speculative

activities

gold

not

ters

in the firm's Hazleton

in

establish
in

►

Butcher & Sherrerd
To Admit Two
PHILADELPHIA, Pa —On Jan. 1
Butcher & Sherrerd,

a

this

1500 Walnut

Street, members of the New York
and

Philadelphia-Baltimore Stock
will

Exchanges,
McAtee

and

partnership.
firm's

market.

market

office.

•#

a

quently it is necessary that such' trated by our persistent loss of
a
reaction
be .ignored
by the gold and to some extent bv the

of

Admit Partners

the

ample, 1920-1923—then the pain¬

reac¬

redeemable.

are

part of

ment.-

act

reverse

they

common

irresponsible

to be

upon

promptly after

becomes

the

and

stituted under any reasonable cir¬
cumstances within the foreseeable
future—as in Germany, for ex¬

psychological

be

honest

standard gold unit
be-r. that redemption could not be in¬

currency

redeemable.

can

J. H. Brooks Will

may

psychological reactions are
favorable, as they commonlv tend

money

James C. Tucker & Co. Inc., Stocks

time,

would

redemption makes it ex¬
tremely difficult, possibly impos¬

an

Company

of

Rediscount rates should be

impair

be

of with¬
in 1928.

nation

the

10

year

The strong tendencv of

favorable

&

rate

for the mints
coins. The pas¬

and

sharp re¬
for 1941,

indexes of wholesale prices,
been brought to its lowest
since 1749.
Managed irre¬
deemable
currency- is4 bringing
home once more, and to us this

necessary

restrict

that

total gold

our

In six of those

1.81.

there

years

quickly

from the undersigned only

whom

no

a

the 24.6%

from

level

withdrawals by foreign claimants •
ernment

themselves

and

for

The gold ratio qf

by

of gold. Con¬

nating all possisble

average,

logical

a

has

(3) The government should cut
its foreign spending, lending and
similar programs sharply, termi¬

the 'yearly

of

top percentage being

approximately

favorable

states

law

a

should be called into special
for this purpose, and the
for
instituting redemption

us

to

gold stocks drawn

of

common

statutory

ounce

country^ to draw them to

redeemable. For the decade 1923-

Domestic

those

pass

sharply, and repeatedly if
necessary, to hold funds in this

soon

as

is

28-31, 1953. The purchasing
power of our dollar, as measured

becomes' credit.

currency

domestic

fine

we

the 13.0%

future authoriz¬

near

present
per

(2)

Another important consideration

gold

of the government
have been pursuing

Jan.

the following:

raised

estimate—since it should increase

Share

duction

are

is, that the demands for redemp¬

of

6.8%, Oct. 26, 1960, is

of that in the earmarked account.

currency.

loss

in this country.

provide gold
sage of the law should draw gold
to

sharply and rapidly
gold stock to non-

•

Rapidly Approaching

or

programs

The proper devices to

are

to
•

war.

consequence

urgent that our
take
proper
steps

promptly to terminate our loss of
gold and to draw it to us and to
provide a valid basis for faith in

than

gold stock. Both

with

under

of Reckoning Is at

Day

Our

is

need

should

account and

earmarked

added

comes

in

Hand

..

session

released

be

common

1918-1919

"

The

gress

redemption, the ratio • could be
relatively low—say. below the 5%

Common Stock

be obtained

'•

«>-

.

The

/..""Our Urgent Need Now

the

peak of $24,691 000.000

of

of

conditions

cur¬

with

low

(Par Value $.10 Per Share)

may

-

•

....

(1) Congress should

eign

Copies of the Offering Circular

;

in the very

$4,060,900,000
(Sept.
30,
when Treasury gold stock

controls

our

-•••

irredeemable

and prove safe and adequate

THE ELECTRO-MECHANICS CO.

exchanges.

would have little in

respect to redeem¬
*

date

redemption

Price $3.00 per

is

a

discount in foreign
Such
an
embargo

pronounced

currency.

$35.00

assurance

100,000 Shares

it

in

versus

sible," for

November

pected to subject our dollar to
.

should be
not evidence

goPd now earmarked for
foreign account — $11,188,000,000,
as
of Oct. 31, 1960, as compared

the

ISSUE

but

of wisdom

employ

the

.

reaction

of

expected;

our

tutes

NEW

irredeemable

an

type

of

cur¬

Offering Circular.

f.

ing the institution of redemption

solicitation of an offer

the

reac¬

the country
instituting redemption. And,much

drawal being 7.3%
announcement is neither

those

operate. • An embargo
on
gold
movementsfrom
our
Reserve
banks and Treasury could be ex¬

the

tends to draw gold to

gold,
This

as

uniform

a

„

.

! are

pass as

under

institution of, redemption

into

1918, to June 26, 1919, during
the Treasury and Reserve

is

,

pay

even

very great majority
people, including many who
responsible leaders, living

of
;

-

»

1878.- This

tion 'of

paramount consideration is

that the

gold

which

a

of

r

,

and
Reserve
banks
gold upon demand
though the latter's reserves
fall
below
the
legal * minimum
limit at which point tax penalties
for
deficient reserves
begin to
Treasury

dan¬

currency

.

No

should

•

the

weak currency...

embargo
should
be
placed on the outward movement
of gold or on the earmarking of
gold - for foreign account.
The

impossibility, of institut¬

redeemable

a

:

v

on

fundamentally the same'
,

*

well reach down

zone

the

ing

-

comments

em-

characteristic

common

a

to

controls

dictatorial government with

a

(5)

country if redemption

instituted.

gers, or
-

a

is

is

so

exchange

upon

which

was a near hys¬
calamity which
people believed would

of

mass

Current

prevailed.
But with,:
our large surplus reserves in Fed- eral Reserve banks, and consider- j.
ing the deficits in such reserve in .
the 1920s when the requirements
were
at
a
higher level — 40%
against
Federal
Reservenotes,
and 35%
against deposits, com¬
pared with a 25% requirement
against each at present—it seems
reasonable
to
suppose
that the
safety

bark
of

To do

abroad.

kets
,

the

to

as

were

1919-1920,

a

redeemable

that

estimate

to

has

author

hoards and
demands, do¬
foreign, > for govern-*
securities
were
unusually
The

earlier, there

teria

cur¬

(•4)
No
restraints should be
placed upon people who wish to
speculate in existing free mar¬

domestic

befall this

if conditions such as those
particularly those of

point

maintained
a

compared

is

This

•

and

the

of 1915-1932,

percentages

and

•

answer

might well be the low

ratio of 7%

1932,

when the yearly gold ratios,
1915-1932, ranged from 6.7% to
10.9% except for the period Feb.

„

different variables involved when

that

rency

The

probably remains in the area of
guessing because -of the
many

is

country

standard

credit?

bank

ber

nevertheless

fact

The

experience, how
gold ratio be and
still permit the institution of redemption safely and without de¬
flation, or any important amount
of deflation, of Reserve and mem¬
the

may

irredeemable

involved.

and by March, 1879, a
business
expansion
was
under
way commonly called the
"gold
redemption boom." Yet, in 1878,

v*.

a

useful or proper
purpose; it merely misleads the
people as to the monetary issues

heavy,

Member

of

serves no

rency

and

ment

the light of

low

to

approximately 4.8%.

banks

surplus

the

by

$6,113,000,000),

in January and

contract
serve

member

of

and if the volume

Walter E. Spahr

(average monthly)
ratios was from 6.7% in 1920 to
10.9% in 1917. The average of the

In

»

by

(each

amount

1932 the range

1932

reduced

each

were

1915-32

the

"V

banks and Federal Reserve banks

During the
period
1915of

deposits

the

if

ed,

Comparison

-

" ;

.

surplus reserves of Fed¬

the

If

•

*

part

A speculative goid

under

market

$400,000 cf gold was
for paper, money and

abroad.

integral

an

gold standard.

some

from

mestic

Federal

Credit

Bank

eral Reserve banks were exhaust¬

standing.

With

Reserve and

In

We

is

that

ket

the first day

on

flowed in to the banks and Treas¬

post¬

Redemption

money.

disappeared from the .newspapers
as
a
newsworthy
item.
Gold,
ury

l^sutuie

of

$135,000 of paper money for
gold. At the end of three days,
reports on the redemption process

our

Which

at

Ratio

Without Deflation of

banks, then the latter could
add approximately $240 billion to
their deposits if the present ratios
between demand the time deposits

•

immediate

and

Bottom

Couid

-

ber

26.

Treasury

currency

The

for mem¬

reserves

were

of

interest

the

market,

incon¬

an

The only proper gold
considering the function
gold as money, is the free mar¬

country.

currency

in

only

from

expansion of Reserve bank credit
tcok the form of deposits, and if
all these

maintained

Thursday, December 8, 1860

.

redemption in New York, Jan.

2, 1879,

adjustments.

war

possible

this

If

.effort

war

prevailed and if present ratios of
reserve requirements for member
banks remained unchanged. Time
and demand deposits of all banks
stood at $218,900,000,000 as of Oct.

Re¬

serve

25%.

minimum

The Present Ratio

ratio

in

exercised

gold

exampie,

presented

the period Feb. 20, 1918June 26,
1919, while control of
foreign currency transactions was

bank
deposits—were exhausted, (4) of how low a safe ratio for redemp¬
tion can go without deflating Federal Reserve and member bank
credit, and (5) of the choice before us if the worst were to happen.
To avoid the latter, Dr. Spahr outlines what should and should not
be done; points out that redemption tends to decrease the demand
for gold and draw gold to the gold stock; and asks if we are willing
to institute without delay the necessary correctives to save our dollar

*

redemption was

For

'

during

—computed as being able to add about $240 billion to member

The

of

non-gold

redeemable

venient

mestic

experience,

Federal Reserve surplus

(3) of what the ratio would be if the present

made

(The lifting of controls,
June 26,. 1919, did not apply.to
Russia until Dec. 18, 192U.j
Do¬

Monetary Policy, New York City

non-gold money and bank deposits, (2) of our past ratio

convenient

is

change.

analysis is made (1) of our present gold reserve ratio to

Factual

a

orders,

bullion, and currency, and con¬
trolled transactions in foreign ex¬

By Waller E. Spahr, Executive Vice-President, Economists*
National Committee

Executive

under

prohibited tne exportation of coin,

.

.

ment.
the

B.

J.
to

Mr. Richter is in

municipal
Mr.

James
Richter

admit

John

McAtee

is

the

depart¬
manager of

bond

trading department.

Volume

192

Number

6010

.

.

The Commercial and

.

Financial Chronicle

(2287)

and

Russia's Aggressive Role in
World's Petroleum Markets
.

I

'

Searching appraisal is made of the Soviet
world's
of

oil

their

Soviet

,

market to

activities

bioc

is

in

the

present daily 400,000
short

doing
'

of their
one

and

the

run

years

to

barrel

to

rate

risk; of

their

effect

.

large-scale
oil

Thus,

nature

creased

term

the

leum

50%

over

the,

two

would

be

with

volume

time,
assuming

able—that

even

r

are

the

World

17.8 million

that sales resistance is

a

clearer

oil

East

by

Com¬
prices claimed to

Germany

decades, the Soviet Union in re¬
cent years has. reappeared as
a

munist China at

major competitive factor in international

this

p

are

at

time

a

cutting

postings

re-

countries

the

Africa

of

to certain eco¬

fers

to

pears

of

trade

needs

behind

the

use

The

aid.

bulk

very

nicely

that

paid

already

with their po-

Arthur

H.

Dean

The Soviets' in¬

in

rich

vestments

in

fit

the

in their country.

this

in

case

exports are now going
Iron Curtain, the So¬
technicians are
everywhere

viet

bloc countries,
which

and

by

When

of Guinea's

Soviet

nomic
of

agreements.

country
political

have
divi¬

dends.
In August of

litical and

However,
in
disruptive
aims
recognizing the economic motiva¬
tions of the Soviet's current ex¬

viet

this year, the So¬
and Ghana signed
a

Union

series of trade agreements provid¬

ing,

other things, for

among

sup¬

the

of

pros¬

cannot

by

or

private

products.

companies

consumption
here

in

tries

do

viet
are

in

not

di¬

The

petroleum

United

These

In
coun¬

oil

future.

oil

currencies.

en¬

The

such

commodities

tremendous competi¬

particularly in the
countries

of

prices

oils

involved

have

also

of

$2.01

the

various

this

and

tied!

$2.16

about 22 cents

barrel below the

a

being
for

.

crude

paid

comparable
oils.

Some
crude

day

price currently
Japanese refiners

by

Persian

12,000 barrels

oil

of

and

diesel

2,000
fuel

Gulf

day of

per

barrels

can

men,

be

relaxed.

Chilean copper and

currently
by tanker from
Black Sea ports to Brazil.
These

being

shipped

deliveries

being made under

are

Icelandic fish.

many

cases

the

oil

it is difficult to

price being paid for

because

providing for re¬
ciprocal purchases by the Russians
of Brazilian

coffee.

In

addition, Russian petroleum
products are now going to India
in

considerable
The

Soviet

sell

1.5

quantities.
Union

million

has

tons

sine and diesel fuel

20%
and

below
the

take

particular
tie-in arrangement,
may be a barter transaction, or
may provide for payment in local

ered

currencies.

be

a

agreed

of

kero-

the

over

When this fact

Soviet

Persian Gulf postings
have- agreed to

In other cases,

the current

today accounts for 80% • sale of crude and fuel oil to Japan.
of the total supply to Finland and Shipments of 22,000 barrels per
!27%" of Greece's total' petroleumimports.
This announcement is neither

an

is

in

payment

the

securities.

to

quantities

indicate

of .products

by this agreement

increased
also

Recent

rupees.

reports

We

have

recent

in

seen

willingness
countries of
advance

evidence

much

Soviets'
to
use
trade with
the Free World to

years

of

the

their ideological and po¬

Seizing

the
opportunity pre¬
the Castro revolution in

Russians moved in
promptly with offers of trade and
credits.
They
have
secured a
$100 million trade agreement for
the supply of Russian crude oil
and other goods to Cuba in ex¬
change for the purchase of large
quantities of Cuban sugar, thereby
gaining a position of influence in
a country only 90 miles from our
shores. And by thus assuring the
Cuban Government of crude oil
the

Cuba,

important to remember that the
of petro¬

to

a

defined

will be

leum

and

supplies, the Soviets made a ma¬
jor contribution to the seizure of
the privately owned refineries in
Cuba.

may

that

the

Indian

Oil Company has had
difficulty
finding customers for the initial

shipment
diesel

of

fuel

11,000

barrels

delivered

motivation

not

or

behind

the

their

with Cuba has been the
extend

their

disrupt

The

and

latest

In saying this, I do not mean to
imply that the Soviets conduct
their foreign trade without regard
to economics or the profit motive.

be at

Far
.

since

But

my

devoted

largely

factors

nomic

remarks will be
to certain eco¬
affecting
Soviet

petroleum exports, I want to be
clear at the outset that these

very

considerations

economic

the
fact

in¬

and

Communist
the

makes

job

?

trade

me

the

have

ex¬

contract.
Russian

tended

sales
to

even

Interamerican

reported
ceived

offer to sell

in

efforts
our

own

Refining

June

avcabled

that

a

it

had

quotation

.'•»Continued

nor

country.
Company
an

page

on

23

solicitation of any offer to buy

turn

Soviet

our

the

to

interests

be

can

no

which the
make

kets in

agreements and

extensions

credit, primarily to the United
Arab Republic, and on a smaller
scale to
Iraq, Iran, Turkey and
Yemen. A striking example of the
of

as

certain that they

not only to maintain their-

current rate of exports but to in¬
crease

it

if

possible

by

vigorous

competitive activity.
In

crude

1958

oil

Soviet bloc
and

products

to

events

in

of

tent

of^,
,

the

problem
oil

World.

Offers

illustrate

of

the

and

form

for securities acceptable

to

the

Fund.

The

manage

a

groupi

<<of< -securities dealers

to

of

offer
the

are

set forth in

state from any

ex¬

a

Prospectus dated November 28,

Prospectus and the Transmittal Letter
dealer who

may

may

were

the

made

to the Indian

Government by the;
which were priced be¬

Russians

10%

and

prices

at

owned

20%

refineries

crude oil.

which
As

a

the
were

below

the

privately
importing

result of these of¬

fers, the private companies found
it necessary to revise downward
the prices at which crude

oil was

Goldman, Sachs & Co.

being supplied to India notwith-;
standing the fact that those prices
had
been
carefully worked out
agreed

to

by

the

companies

concerned and Indian Government

the

officials

some

time

,

;

before.

^

Notes Their Competitive Tactics

The-striking
efforts

to

success

increase

of

Soviet

the volume

of

December 5, 1960.
.

any

properly distribute them within such state.

.

oil

of

1960. Copies of

be obtained within

•

crude

has

solicit deposits

confronting

companies

Fund

Dealer Manager Agreement with Goldman, Sachs & Co. to

securities to be exchanged for shares of the Fund. The terms of the exchange

of trade for




a

>.

.

Recent

volumes.

India

private

Free

of

political and dis¬ Free World amounted to approxi-,
ruptive purposes in this area is mately 218,000 barrels per day.
the recent purchase of an undis¬ During 1959, these exports jumped
closed quantity of Iraq's royalty to some 300,000 barrels per day,

-

.

actual

and

exports

barrel

exchange

entered into

significance of Soviet petro¬
exports
goes
far
beyond

tween

substantial way.

It is almost

.each

leum

are pres¬

Russian
efforts to
gain a political foothold in the
Middle East have been marked by

on

they produce.

in

tors

East

Middle

their

of

mar¬

various

Governments

The

Federal Street Fund, Inc. is offering shares of its Common Stock to inves¬

the royalty payments
private companies must

the

to

crude oil

the inter¬
markets.

question that

the

bar¬

per

comparable Persian Gulf
This
figure is about

to

in

the Soviet bloc countries

intend

gravity

oil.

hazardous

facts

for

crude

the

current

petroleum

a

barrel f.o.b.

deg.

Taking account of the

equal

This

ently in the world petroleum

Similarly,

31

equivalent of about $0.80
rel

The Current Situation
There

per

for

Sea/Persian Gulf transpor¬

cautionary word,. let

competition

national

Common Stock

are

Sea

re¬

on

purchases of
reported to

oil

Black

desire to

influence
Hemisphere and to

injure

this

crude

oil.

the

With

of

crude

of seeking to

extremely

an

Italian

price of $1

a

Black

probable
of Soviet petroleum

scope

exports

countries.

define

and

measure

future

are

intertwined .with the
diplomatic goals of

extricably
political

supplies

tation differential, this price is

it!

from

in the process.

use

Soviet

Russian

political

to the Western

.

po¬

require¬

diplomatic

additional

of

under

Federal Street Fund, Inc.

which, if accepted, will
susbtantially increase the
supply position to Italy.

soon

sharply, although it

reported

The offering is made only by the Prospectus.

oil

again

one.

Russians
wanted to buy sugar or sell oil
for economic reasons, the primary
Whether

trade

crude

limited

and

large degree by the

very

litical

substantial

ments of the Soviet bloc states.

litical influence.

sented by

is

extent of Soviet exports

that
cov¬

20%.

over

Recent

newspaper reports have
examples of
tirejessly to expose
stated that E. N. I., the petroleum
bourgeois ideology, reveal how in¬ Soviet trade activities which have
imical it is to the people, show up been motivated in a direct way by entity of the Italian Government,'
has
received
a
further offer
of •
its reactionary nature."
political considerations because it
;

is

task

Our

next

Russians

newspaper

Soviet oil1

market

a

trade agreement

a

such as
shipments being made
rently
to Cuba, price details simply are
Free World demand outside of the
not
made public.
However, ex¬
United States and Canada.
The countries of Free Europe, ; amples of Soviet petroleum sales
in the recent past indicate that
with a demand approaching onetheir prices have been about 10 to
quarter of the Free World's total
20%
below
prevailing
market
(4.2 million barrels per day), are *
prices.
currently the Soviets' best cus¬
The
Russians
recently
con¬
tomers for oil and offer them the r
best prospects for-additional sales. • cluded a six-year contract for the

I mention these few

per

are

.

of

per

average delivered

,

minds

in

day in

a

in

year,

day

a

barrel delivered to. Japan. These
prices have been estimated to be

the

demon¬

between

are

this

barrels

The

deal may have

consideration, it ap¬
exports
cur¬
comprise
about
5%
of

that

34,000

or

is taken, into
pears,

and

1962.

to

Soviet

in the

so

their

local

or

Soviets

measure

import any So¬
or
products and

unlikely to do

foreseeable

States

two

soft

a

1961

willingness to cut price four years to the new,
govern¬
substantially below prevailing ment-owned Indian Oil
Company.
market prices.
Prices are reported to be 12 to

now

crude
most

of

the

Canada.

to

world.

half of the total Free

occurs

and

currencies

sell

underdeveloped

strated
over

to

tive advantage,

in

are

hard

willingness to take

gives them

Soviet

they

for

currencies

consider

demand

able

not

Soviets'

drive; we should not forget plies of Russian petroleum prod¬
■/.'7. '
Premier Khrushchev's words to ucts.
The Soviets have sought to pro¬
the 20th
Congress of the Com¬
In Italy, total demand in 1959
mote
their
diplomatic relations
munist Party of the Soviet Union
amounted to 390,000 -barrels per with
other
countries
by agree¬
in February, 1956:
•
.*
:
>
ments
to
purchase commodities day of which the Soviets supplied
Vi
It does not at all follow
which happen to be temporarily 45,000 barrels per day or 11.5%
from the fact that we stand for
total.
This
year,
Italian •
in surplus supply. Notable in this of the
peaceful
co-existence and eco¬
purchases of Soviet crude oil are
nomic competition with capital¬ category have been Soviet pur¬
chases of Uruguayan wool, Bur¬ scheduled to double to 90,000 bar¬
ism,
that, the - struggle
against
rels per day, thereby increasing,
mese
rice, Ceylonese rubber, In¬
bourgeois ideology, against the
the Soviet position in the Italian
survivals
of
capitalism
in the dia hemp, jute and printed cloth,

port

met

the

obtain

tirely

But

signifi¬

of

we

which

to

areas

the

if

seen

World

to

alert

are

be
related in part

trade

ap¬

the

of

volumes

terms

Well

of
Guinea
severed its ties with France, the
Soviets moved in quickly with of¬

enter those

markets

them

all

the world!

Russians

picture

is

in

for

rected.

prices

petroleum

to

which

royalties, operating expenses,
interest, taxes and dividends, they

estimated

barrels per day.

exports

Soviets

the

when

—

possibilities of extending their in¬
fluence
in
the
newly emerging

de¬

to

current

above

The

The

Soviet's

4%

over

etroleum

markets.

cision

be

and

must

petro¬
1959 amounted to

these

of

cance

two

total

demand

leum, which in

some

terms

pay

of

gests what the Free World oil producers should do to preserve their

developing to the inferior quality of Soviet oil.

be

Because

portion

oil-producing

Mr. Dean counsels

offer

payment for crude oil

capitalist

good

might envy!
Now, of course, 400,000 barrels
per day is not a very susbtantial

"intangible, but very real, advantage over the Marxists," and notes

absence of

accomplish¬
it to be profit¬
an

a

to

private
including the unlim¬
ited
acceptance of local curren¬
cies, , and even commodities, in

its

of

able

day are scheduled for
rising to 28,000 barrels

crude

to match.

effectively
companies,

petro¬
almost 100% in

exports by

ment—

quite

The urgency to export is seen
relations

the

per

years'

Free

an

Cuba, which
quarter of this

neighborhood of
day.
Soviet bloc has in¬

the

posi¬

a

By virtue of its position as an
organ of a totalitarian state, the
Soviet Petroleum Export Agency

to

third

during

attributed

private company is in

no

tion

com¬

deliv¬

be

competitive tactics that

pective purchasers

against State Trading to meet the form?r kind of competition, sug¬

Following

largely'

exports

can

is

short

which, however,

their

is

past

61,000 barrels

the

upon

It may either prompt them to cut price

damaging

the

in part to

by the recent

of

of crude

the

to get the best possible export price.

or

mencement

exports

For

come.

increase

production capacity.

of two things.

countries,

bloc's

date, and of the probable scope and

expected

accounted for

petroleum

the recent

year were in the

'

''

their

are

rate of close to 400,-

barrels per day.
The
latter
increase

during

New York City

time they

present
a

000

eries

By Arthur H. Dean,* Partner, Sullivan & Cromwell, Esqs.,

the

at

running at

11

"1

12

PNjftlPv^vitiiviWrt-.^u^ wWf»'1 "(WW Sf V.'li'.'V •i'Vii-j"'iv

f»';-'''.i»r"r>

The Commercial and Financial Chronicle

(2288)

300%.

over

Business Recession Can Be

mand

expanded
Prices

Checked Sans Pump Priming
Business

Dean, Graduate School of

H. Taggart,*

increased

market's

Also,

its principal com¬

of the economy and

analysis

Taggart's

there

economic area with the
spending on
non-durables and spending, Dean Taggart predicts the ending of
our recession by the end of the first half of 1961. Turning to the
challenging problem of the cold war, he warns against the proposed
cures of massive government spending or of turning our backs on
the free
enterprise system.
He announces that his school will
make a study of Administrative and legal practices inhibiting free
enterprise and will recommend to President-elect Kennedy those
changes that will aid our growth.
vigorous governmental activity in the

Analysis of the business outlook
can
be accomplished in a variety

the

trate.

of

not

only

but

for

The Past Rec¬

the

The

(2)

ord;

tion;

Regarding
past, the
present, and
the
future, I
shall
present

of consumer and
goods; there was need
for new plant and equipment, for
new
sources
of energy and for

all

transportation facilities. There
was pent-up demand for residen¬
tial housings, and for schools and
public buildings. The demands of

nclusions

without
the

custom¬

"hedge

clauses"

the

American
dollars

world.

some

from

J.

Dr.

H.

Taggart

"As

a

fourth and

a

as

bf passenger cars, ma¬
chine tools, and split-level homes;

shortages

last section of this paper.

the

capacity of industry, agricul¬
ture, and mining was greatly in¬
creased. Masses of statistics could

Record

Past

The

"The

study of history," writes
John Steinbeck, "while it does not
endow with prophecy, may indi¬
cate
lines
of
probability."
In
retrospect,
the postwar
period,
largely the decade of the 1950's,
appears as a unique economic ex¬
perience. Great wars of history

be

been

but

followed

decade

the

of

War

World

II.

In¬

Prices

the

at

22%.

1948-49, 1953-54, and 1957-58).

ered

ket

these

the

economy

recov¬

partly because of free mar¬
influences, partly because of

and local debt

was

debt

Mortgage
same,

Federal

slightly,

155%.

durable

Free

it

World:

a

meant

for the

was

the

longer

no

situation.

this definition

sion, albeit

we

mild

a

in

Thus,

is

it

evident

climate

The peculiar forces

ated

the

that

has

the

changed.

which gener¬

postwar boom have lost

strength.
subject to

completely

The
new

economy

and

as

yet not

The

influences.

clear

is

change may seem to have hap¬
pened quickly and unexpectedly,
but it has not been sudden. Signs
in evidence in 1956 and 1957

were

the

as

growth rate slowed down.

The FRB

one.

September. GNP in
declined. Inven¬
tory accumulation has stopped!
Housing starts after an abortive
rise
in
August
dropped again;
August

consumption ex¬
penditures, notably those for du¬
rables, registered a slight decline.
The strong sectors continued to
be
state
and
local
government
personal

even

lesser extent,
Federal spending for defense and
highway construction. At the mo¬
ment, expenditures for plant and
equipment
continue
at
a
high
level, although less than earlier
plans indicated.
Again, in August the Federal
spending and,

to

a

the

rediscount

at the same time it
requirements of

3%;

reduced

reserve

Central

the

to

reduced

Reserve

rates

the

period
1946-59,
the
growth of the economy was at a
3.6% annual rate. It is significant
that the rate

part

4.6% in the first

was

against 2.4%

as

in the latter

Many sectors of the

years.

econ¬

however, continued to move
throughout the period so
that the general picture was one
omy,

upward

of

progress.

the

is

It

Reserve

City

Rapid recovery from
of 1957-58 through

recession

massive

conceal

the

environ¬

changes
and
to
create
optimism regarding 1960 and the
decade of the sixties.
The Present

1960

year

Situation

started

to

there

plen¬

more

less

residential

stimulated

housing

these

by

debt

instalment

increase

to

by

these

debentures

undersigned,
This

and

under

the

terms

advertisement

stock

common

of

as

a

been

purchased
the

between

agreement

an

appears

have

and

which

one

change

the

in

dulled

climate.

massive

the

now

matter

of

record

parties.

only.

been

building

in

Thus

far

ISSUE

December

National

crossed

Product

1960

lation

of

renewed

inventories

decreased

accumu¬

which

had

during the steel strike.

State

and local government ex¬
penditures increased, as did plant
and

$2,000,000.00

There

here

has

industry

it

KNAPIC

ELECTRO-PHYSICS, INC.

not

5H% Convertible Debentures

there

which became

parent

and Common Stock

The

as

rate

weak

were

more

the

spots

and more ap¬

year

progressed.

of

inventory accumula¬
tion declined, residential housing
starts fell, consumer durable
goods,
such
as
household
ap¬
pliances and furniture, were in

weak
demand. As a result, ac¬
tivity in various industries was
adversely
affected — in
steel,

aluminum,

copper, and coal. The
instead of continuing its
initial rise began to move sideways

Electro-Science Investors, Inc.
A

Federal

Licensee
727

Under

the

Small

Business

South Central Expressway,




Investment

Act

Richardson, Texas

of

economy

1958

along

an

uneven

and

yet

the

under

uneasy

is

another

I

naively

imagine that all the promises of
the campaign will or can be me¬
ticulously fulfilled. This would be
true, whichever party won.
Forces.

Positive

find

We

as

economic forces increased

strong

Federal spending by the new Ad¬

certainly

ministration,
and

defense

somewhat

certainly

for

more

There will be
in

the

for

more

almost

the

services, i n c 1 u d i n g

social

education.

continued growth

a

expenditures

of state and

local

governments at about the
existing rate of increase of some
$3 billion a year. In the consumer
sector spending for non-durable
goods

and for services will

tinue

to

con¬

rise.

Expenditures on
services will increase, however, at
a

rate

faster

than

those

on

non¬

durable goods. Powerful forces of

the

econ¬

the increase in the

growth

popu¬

longer-run
omy are

for

lation and changes in its composi¬

tion,

the rapid advance in
technology. At the

and

science

and

end of

very

to

more

I shall have

my paper,

about

say

longer-run

growth.
Doubtful
category

In

Forces.

several

are

doubtful

other

ele¬

ments. Among consumer

durables,
great automobile industry is
in this
category since it seems
dubious that automobile sales will

the

.

continue

at

recent

the

high rate

and

quite possible that inventories
prove excessive.
Appliances
also
hold
out
little
promise of

will

definite near-term improve¬

any

It

is also

ventories

their
to

probable .that in¬
whole

a

as

present
of

one

reduction.

will

move

posi¬

neutral

decumulation

Under

or

condi¬

present

In

ward

further steps

took

increasing

to¬

the

lending and
investing power of the banking
system by eliminating the differ¬
between

Central

Reserve

and Reserve City Banks,

well

as

used

changes
should

of

as

permitting all vault cash

be

will

provide
to

serve

build

1960, I

9,

assistance

they
anti¬

Nevertheless,

resources.

Nov.

These

reserves.

as

also

cannot

end

discussion of the present situ¬
in any other way than by
repeating that business is now
in recession, mild as it may be.
ation

still recession.

to

a

So let
the

tinue

not dwell

ties

litical

the possible difficul¬

on

which
and

our

familiar.

international

economic

We

po¬

position and

entail.

These

are

subject to
the so-called discipline of the bal¬
of

ance

and, to

are

now

payments.

This

special

unless

taken

are

to

stimulate

construction.

Over a long period
time, increased availability of
mortgage funds will exert favor¬
able
run

effects,

but

over

short

the

government assistance will be

essential,
for
example,
in
the
building of multiple family dwell¬
ings. This is an area where we
should

expect the

tration

to

Weak

new

Adminis¬

the

definitely

act.

Forces.

In

weak

category, I would place,
first, business spending on plant'
and equipment. This is now in the
of

topping

above

Here

again is

ernment

of

out

at

some¬

$36 billion and from

on

the

trend
an

will

greater freedom

be

down.

where gov¬

area

stimulation

in

the

form

permitting
charge-offs for depreciation might
well induce greater
investment.
Both

Presidential

in

had

candidates

promised this.
Moderate Recession Until
Mid-1961

an

our

up

of

affects

extent, limits the range
fiscal and credit policies.
Developments in the cold war,
of

factor

lethargic

then

for
point, I shall

this

At

referred
to the

weak

measures

process

turn to the Outlook

us

Future.

housing,

already been

present time, seems likely to con¬

what
The Business Outlook

in

residential

has

as

advantages

great

them.

Finally,

my

but

but

reducing
which

October the Federal Reserve

authorities

incentive to increase inven¬

no

tories,

of

rate

consumption.

responsibilities

increased.
But

In

that 52%

certain

seems

substantially

also

strong con¬
buying
of
non-durable
goods and services. In addition
the balance of payments position
showed improvement as exports
was

sumer

do

nor

is

steel

increases

raised its operating rate, although

equipment spending by busi¬

ness.

envisage

not

Deal,

The

as

was

do

I

area.

New

tions of ample productive capacitv
and essentially stable prices, there

seasonal

recession

during the first half of

Administration

heavy industry have not occurred.

heralded

the $500 billion mark. There were

economy

8,

the

the

Administra¬

an

Democratic

tion

economy.

such

since

of

map

Nevertheless, I feel certain that

change in the recessive character
the

been elected,

will be energetic in the economic

from

of

1'

tion would be likely to follow.

the fourth quarter and there is no

for the Christmas season, but

high and in the first quarter

of

month

second

outlook.

assumptions

clearer

a

that

course

ment.

years.

to

1960. There
NEW

the

has

of the postwar

program

is

housing

the

by

illustrates

economic

for

Demand

¬

It is my belief that
important difference

appointing.
this is an

strong forces at work within the

the

by

but

City

out

In

gear.

Gross
All

was

factors,

January the FRB
production index reached an all-

high

re¬

1960 the reaction has been dis

in

have

we

costly

time

government action, particularly in

has

In previous periods of

cession,

ence

The

as reserves.

that

somewhat

and

money.

government expenditures
to

Banks

and in¬

amount of vault cash

the

noteworthy

tiful

President had

and

the third quarter

It

For

by

reces¬

a

index dropped three joints during

been little response

among many.

than
given

a

Certainly,

are

rency

tended

caused

in

ones

make

regarding the program of the new
Administration. This would have

the

eco¬

stronger

are

that banks could count

mental

the

factors

favorable

only major industrial power! The
dollar had become one strong cur¬

in¬

200%.

the

economic

creased

country

state

but

goods

always

is

unfavorable

when

to

have

shall

of the term

use

Our

but the heavy demand for

consumer

There

the

about

(New York and Chicago)

in¬

about

rose

reversed. Again,

were

growing competition

level

up over

and

are now

we

United States at home and abroad.

debt

consumer

only

one

was

FRB

construction

creased

of

in

residential

depres¬

the

dollars,

creased

From

87%

rose

real

no

period

Gross

index
of industrial production 64%', dis¬
posable
personal
income
73%,
current

of

the

the

1950's,

Product

National

economic progress interrupted by
three moderate recessions (those

stead,

what happened

show

to

generally by

followed

depressions,

cited

during this truly fabulous period,
but I shall use only a few. In the

,

sion

also

now

on

ac¬

States,

tably the Marshall Plan—meant
stronger

disappeared; > government,
business, and consumer debt in¬
creased
sharply, our expanding
economy
met
the
accumulated

later

United

rebuilding of industrial ca¬
pacity in other countries — much
of it through American aid, no¬

individual who^piakes his

omy

gold

result,

a

the

the

their

right to set forth certain quali¬

have

movements

mally high liquidity of the econ¬

in the Wall Street
Nevertheless, I shall reserve

fications

abnor¬

The

great

American export surplus was ex¬
ceeded by the outflow of govern¬
ment
and
private
funds.
Gold

have learned to expect

headquarters
area.

these

on,

wore

changed.

conditions

whictl
may
an

fifties

the

in

were

but by the early 1950's conditions
had begun to change; the reduced

economic

intensified these needs.

As

in

cumulated

of the Cola

War and

Korean

War

and

"ifs, ands, and
buts"

categories

producer

definite

ary

over

power

supply of goods and
services. There were shortages of
the available

the

c o

and

actual

of

purchasing

potential

(3)

and

Outlook.

The

true

States

the United

in

was

excess

systems were in
goods
and

Monetary

Through the late 1940's,
heavy export balances were gen¬
erated by the needs of the post¬

world. At the end of

there

an

at the end

demand.

was

United

the

for

the

war

States

Present Situa¬

This

inflationary.

was

discuss the
headings: (1)

I propose to

ways.

subject under three

opinion that

determine the business

been less difficult if a Republican

the weak

quarter

recession.

a

debate

nomic

American

of

tone

third

forces gained the ascendancy,
in

to
the

At

meantime,

disorder,

this period, the
economic life

During

dominant

the

desire

the

1959, about 700.

war

1957-58.

In

the

about

business health.

it is my

inflation.

uneasiness

increased

state of

favorable.

more

was

against

equi¬

of

appraisal

have little effect: there developed

because

also

international
conditions changed. At the end of
the war, the United States was the
only great industrial power left
unscathed.
Great
Britain,
the
countries of Western Europe, and
Japan
were
economically pros¬

Administration, and an upward push from consumer

new

but

3V2%.

to

appeared to

curring

In

nevertheless

*

more

rose

4%

measures

recession. I define recession as oc¬

of

is found to be essentially sound with no
showing dangerous weaknesses. Based on the expectation of

sector

stocks

from

reduced

was

These credit

end of 1949 the Dow-Jones indus¬

'

economy,

be

Thursday, December 8, 1960

.

trial average was 200,

ponents convince him that we are in mild recession, one where the
unfavorable factors are stronger than the favorable ones. The
'

de¬

to

partly because earnings and divi¬

hedge
Dean

loans

common

ties became much

University.

York

Administration, Netv

bank

and interest rates rose.

of

dends
the

By Joseph

business

Large

caused

.

.

Under

present

of

conditions

whether in Africa, Latin
America,
or
Southeast
Asia, can have1 a

overcapacity and declining profit
margins, there is little incentive
for business to
spend. Next, in

marked

the

effect

economy.
now

consume

Gross

high
and

on

domestic

expenditure.-:

some

National

level

the

Military

9%

Product

of

our

and

our

of

foreign economic
military aid and defense ex¬

penditures abroad

constitutes the

basic

our

reason

for

continued

export

sector

there

seems

a

real

possibility of a decline partly
a slowing down of the
European boom and partly be¬
cause of intensified
foreign com¬
petition. The combination'of weak,
because of

and

doubtful

factors

which

may

plateau. Beginning in March the
Federal
Reserve
began
to buy

balance of payments deficit. These

early

bills; in June the rediscount rate

factors

ditions of unemployment. At pres-

affect

and,

to

an

extent,

become

weak, does not indicate
alleviation of present con¬

Volume

5.7%

ent,

the

of

unemployed
hours

192

labor

and

worked

.Number 6010

force

is

number

the

of

week

per

is

de¬

creasing
What,

then,

It

ness?

is

recession
next

based

of

the

for

busi¬

Board

Russia
There

greater

strength

factors

in

index

of

produc¬

of

1961.

the

in

the

Although I

recession and to set it

long-term

take

sure

that

am

stimulating
the
both to bring it out of

economy,

time.

the path

on

growth,

We

this

must

will

remember

that there is little that the Execu¬
tive
of

do

can

the

without

Congress.

the

sanction

Thus,

for

the

short run, that is, roughly through
the first half of next year, my

prophecy is
In

moderate recession.

a

terms

of

peak

to trough
production, I
envisage something in the neigh¬
a

ent

decline of industrial

1961,

I

latter year to

whole.

as

a

of

1961

in

the

would expect the
be about 5% lower

But

should

expenditures
of

non

business

government

and

the

upward

spending

consumer

durables

-

reversal

a

in

and

increased

on

half

second

witness

economy

based

push

the

and

services.

on

There will also be the

on

stimulating

effects of lower interest rates and

plentiful funds, and special

more

taken

measures

ment

by

induce

to

the

govern

and

recovery

finally, I'd

like

qualifications

at

the

outset

of

add

to

a

promised

I

as

this

paper.

Obviously, international develop¬
ments

vitiate

can

forecast

any

Obviously, too, the Administration
might

be

able
the

of

measures

to

rush

through
taTked

much

of

These

rekindle

tability

might

measures

belief

a

in

inevi¬

the

of inflation and lead to
spending by both busi¬

increased
and

ness

is

by

depending
War

Yet,

i

lem

Financial

the

forces

as

recalls

of

did

in

we

Mr.

have heard this prob¬

'by

tion,

increase

ment

allocation

large
I'm

growth
of

by

and

can

the free

to

our

believe

grown
and

up

chal¬

of

signed
abuse

to

relative

strength

factors

be in

may

the

of

work

at

in

the

economy

especially in re¬

error,

gard to the doubtful category, so

that, instead of declining further,
the economy may hold the line
and tlmn turn

to

un

somewhat earlier

higher level.

a

Terms

been

Some

good,

hibited

protecting

the

Optimistic

an

tax

Who

down

modernization
doubt that

can

have

aggravated

payments

problem?

doubt

that

have

contributed

of
can

to

r

heart

leaders

throughout
to

propose

Mr.

nedy that he establish
sion

with

the

fact

power

the

that

of

sector

dangerous weaknesses. The credit
situation

supply is rising. The eco¬
nomic security of the people, de¬

rulings,

States

that

such

needs,

those

recommend

ana

growth
I

we

us

we

of unemploved,

is great and liquid
assets at their disposal are sub¬
stantial.
Eut
I
go
back to my
definite forecast. J believe it rep¬
resents
for
It

the

most

business

in

probable course
the

future.

near

is that business conditions will

be

recession

in

first

half

I

insist,

how¬

this is an optimistic,
pessimistic, forecast. If we
United States, operating in

a

in the
the

1961.

the

that

ever,
not

of

through

up

environment,
can
recession to moderate
proportions and then can resume
economic growth, we
will have
changed

limit

done

any

superb job.

a

Our

Challenging Problem

I

left

on

this

a

Pollyanna if

relatively

If

..Gap,

a

we

look beyond

report

prepared

at -the

Johns Hopkins University. Among
the
study's conclusions are the

points
rate in

economic growth
Russia is twice that of the

that

the




the

he

influence

had

and

expected.

power

over

his veto.

the

versus

San

majority of the electoral votes,
were not
even unofficially

the polls closed.

appointment

His greatest dis¬
the very close

which has

popular

popular vote in the recent election
has

legal status it has

no

moral

influence.

It

dency.

His

of

probable

in

will

8,

page

is

program

Wall Street

the

Nov.

be

now

50

as

not yet

any

He

10.

War

II

may

will

Partners

baum,

Exchange,

Kennedy; but I

be

Irving E.

Louis

NORFOLK,

Va.

Charter

acquire

will

ox

in

the

minority.

are

A Congressman

takes his clue from what the peo¬

in his district
Congressman
has
ple

carefully
shows

as

think.

his

in

out

popular

vote
Kennedy's

Senator

to

Every

figured

the

what

popularity

respective

dis¬

trict.
What
Senator

of the

Kennedy's

Nixon

dent
would

were

have

"do

a

during the next two

gress

years,

and perhaps

during the next four
Unless something happens

next

four

be foreseen, the

now

under

years

CHICAGO,
& Co.,

President

Kennedy could record a "do noth¬
ing" Congress.
Hence the great
as

by the noticeable absence of

the

the

what

happens

during the next two years or more

offer to sell

an

associated with the firm for
in

the

research

Lieber¬

Baker, Weeks
Baker,
Weeks
&
Co.,
1
Wall
Street, New York City, members
of the New York Stock Exchange,
on

Jan.

Mott

to

1

will

nor a

j

LOS

ANGELES, Calif.—Elmer J.

Turner

has

Dean

South

of

been

Spring

solicitation of an offer to

.

Korman,

Price $2.00 Per Share

Co.

Copies of the offering circular may be obtained from the undersigned
others who

SAN FRANCIISCO, Calif.—Henry
T.

Ritchie

with

has

Smith,

Building.

Thomas

connected

become

Barney

&

He was' formerly-with-

Lynch,

Smith.

Pierce,

Fenner

&
'*

*

qualified to act

Jay, Winston & Co., Inc.

Raymond Moore & Co.
Los
.

Angeles

as

dealers in securities in this State.

Pacific Coast Securities Company
San Francisco

Beverly Hills

Co., Russ

Kidder, Peabody & Co. and Mer¬
rill

are

'

to

the

Co.,

added

Witter

St.

He

&

632

was

for¬

merly with Harris, Upham & Co.

and Solomon

(Special to The Financial Chronicle)

H.

Dean Witter Adds

(Without Par Value)

or

Charles

(Special to The Financial Chronicle)

CORPORATION

-

admit

partnership.

Common Stock
.

some

department.

Admit Partner

(Not connected with Ford Motor Co.)

Hertz, who will

and

York

from

people.

Unfortunately,

New

partnership.4 Mr. Brophy has been

staff

franchise"

"unrestricted

an

of

members

Midwest Stock Exchanges, on Jan.
1 will admit James T. Brophy to

well as
This

is why Mr. Kennedy will go into
the White House restrained some¬
what

111.—Bacon, Whipple
135 South La Salle Street,

campaign

elected,
we
nothing" Con¬

FORD ELECTRONICS

With Smith, Barney Co.

A.

member¬

a

Admit Partner

time

Future?

speeches said that if Vice Presi¬

a

Blair &

William

may

though the Republicans

even

general partners,
Rudolph and Stanley .
Eisenberg, limited partners. Louis
Lieberbaum is a partner in D. H.¬

Aaron

—

Bacon, Whipple to

membership in the New
York
Stock
Exchange,
Sheldon
Lieberbaum, Bernard Kaplan and
acquire

might

am sure

Inv. Corp. of Va. to
Be NYSE Member

150,000 Shares
will

Roose¬

war

he does not want it to happen in
this manner.

December 7, 1960

New York City.

Mr.

ship in the New York Stock Ex¬
during his cam-e
change Dec. 15, and Investment
be forced to
Corporation of Virginia, 215 East*
backtrack on many of them.
Plume Street, will become an ex¬
His
influence
with
Congress
change member firm. Officers are
Will be much less than if he had
Mr. Charters, President; C. Wiley
won
with a fairly good popular
Grandy, Vice President and Sec¬
margin and were taking office
retary; G. Powell Davis and W.
with a mandate from the people.
Selden Grandy, Vice Presidents,
Therefore, after the tremendous and E. M.
Stephens, Jr., Treasurer
crowds which met him at every
and Assistant Secretary.
city, he is especially disappointed
by his failure to capture a ma¬
jority of the popular vote. It will
be very difficult to persuade Congress to pass any radical program,
he

as

New Issue

Co., members of the

flyer. As

some

made

another world

so

make Mr.

of these securities. The offer is made only by the offering circular.

of Jan. 1 with offices

Broadway,

from

Jour¬

he made certain

sorry

This announcement is neither

Stock

York

start

statements

paign,

NYSE Member
New

Pittsburgh ad¬

great

a

surely

Mr. Kennedy to remodel the
Democratic party and the Presi-

cause

was

buy

Lieberbaum Co.

be formed

other

accidental and unwanted in¬

Calif.,

To Form

Lieberbaum &

than

the:

could

war

a

World

surprise to most Democrats.

confirmed until many hours after

freedom.

Francisco,

else

radical

On

Mr. Eisenhower pointed

as

some

vote, but I do wish to make an
important statement. Although the

years.

only real

these

1960.

9,

surely

someone

less

velt,

electoral

which cannot

a

can.

Institute,

by

or

in his famous

dress,

He

be replaced by

may

or

by
Dr.
Taggart before
Meeting, Associates of Stanford

15^h

November

at

out

abroad.

Cuba.

Khrushchev.

hand,

confront

occur

more

address

"'An

Research

happv

1961, our
problems are great. Some, may
have seen
a
summary
just re¬
leased of the Cold War Economic
note.

have

but

Although Senator Kennedy won

Ahead

Yet, I would feel

being President;

popular vote,
the

Mr.

Vice

if

disappointment to him,

money

spite the relatively large number

a

Election Was Too Close

the

provide

through

yet in his
much disappointed

changes

desperately need.

so

grow

believe

to

into the White

January,

which

legislation

ters and will give our competitive

chance

be< elected

to

move

is

he will now
have will be that of the veto, and
even
then
Congress
may
pass

which will eliminate needless fet¬

a

Babson

or

nuclear war; fur¬

the

the

commis¬

a

could

to

were

either

nothing' Con¬

prospect

at the head of Commissions, about

enterprise in the United

and

is

Kennedy

both in the diplomatic service and

sion, with due regard to the public

The

eased.

been

has

laws,

and

Other than making appointments,

administrative practices which in¬
hibit free

Let

remains

is essentially sound. No
the
economy
shows

economy

various

attracted,

pleased

of

not

will

the

Ken¬

commis¬

a

"do

a

as
a

psychotic action of

He will have the honor and

prestige

subcommit¬

necessary

he

Senator

next
he

man.

intend at my school, with
support of business and pro¬

to

which

Although

House

We

country,

laid

naturally

hampering growth in local

fessional

Presi¬

the

on

President and

communities?

the

the

Vice

nedy honeymoon,",Pi. 100 days,

codes

bedding and in many other w&ys
to
increasing construction costs
and

ago

personal advisers, led him to
believe he would win by a land¬
slide.
On the strength of this, he
made many statements as to what
he would
do
during the "Ken¬

feather-

tof:

the

for

years

getting

his

laws

Who

building

our

His industri¬

four

near

came

then

crowds

de¬

balance

our

He

plants?
tax

personally made to

Democratic ticket.
plans and built up
organization unequaled in any
Presidential campaign. The great
dency

slowed

of
our

he

rich

few

sacrifices

an

have

that

the

started

effort

nomination

railroad

have

very

has

tremen¬

a

and

this election.

when

un¬

doubt

can

policies

is

make

would

he

ous

can

and

our

Mr.

cannot

serious

his relations with China and other
countries such

been officially determined. I will
not discuss
the legal aspects of

his

Kennedy

secure

in¬

Who

powers,

in

pres-

Disappointed

a

which

without

public.

part

a

crisis?

One

The

Kennedy

worker

dous

that

have

regulation

of

use

played

others

this

outlined

Senator

men

de¬

certainly

enteprise

that

wise

/'

have

or

have

but

free

doubt

this

have

nal

Senator

legislation

rulings

correct

purpose.

society

Prediction

personally at the

ent time.

tees to study on a coordinated basis

of
the
various

appraisal

my

on

about him

to accomplish some social

or

column

a

Man

there

years,

masses

administrative

two

past

This is

like him, and know¬
ing his father, I can write frankly

that

meet this

the elec¬

on

chusetts man,

enterprise system.

the

out that precisely

the

auring

Study for Mr. Kennedy
Over

man."

Presi¬

One

is

merely bluffing about Berlin and

thermore, he
Mr. Molotov,

election, says

speeches stating that

would

the personality of Sen¬
Kennedy.
Being a Massa¬

ator

government
by turning our backs

or

he

as

strictly

massive

spending
on

God

not

should

or

lenge by

play

do

I

economy.
we

to

points

three weeks.

or

economist, but deliver me
from an economist, or anyone
else,
wants

elected

were

article

an

magazines

expenditures.

an

who

Kennedy's campaign

Nixon

recent

disappointed

its outcome has been cov¬
ered fully by the newspapers, the
broadcasting companies, and the

govern¬

resources

government

much

he

cident due to the unpremeditated

they
can

"a

the

Khrushchev.

whether

does not want

men

disturbed, for
vaguely that we

to say

is

on

Kennedy—unless something unforeseen

This is not

consumers.

Again,

Senator

and

in public life, I am
seem

Kennedy

President
gress,

growth discussed

publicist, commenting

dent-elect

encouraging
the

on

power.

meet

Mr.

tell

By Roger W. Babson

II.

as I

of

America's.

can

enterprise just

"massive type" which would turn
the economy up earlier and more

strongly.

It

we

and

World

of

Comments to Another

in

growth

second-class

that

free

Who

And,
few

of

exceed

a

know

preciation

growth.

13

be very largely in the hands

may

One Massachusetts Man

danger, then, that
become during the pres¬

challenge.

borhood of 10%. In terms of 1960
versus

(2289)

real

decade

I

part

of

program

of

first

Administration will adopt

new

a

lower

will

is

will

we

the

tion and the Gross National Prod¬
be

increments

the

than those which are
positive. I expect both the Federal

to

yearly

the

economy

uct

S. A. Although their GNP is
only one-half ours, the Gap will
rapidly close and, by the late
196G's, it is expected that the

for

the

Commercial and Financial Chronicle

U.

that

negative

Reserve

The

.

opinion

months. This statement

on

.

continue

my

will

seven

is

is ahead

.

Kesselman & Co, Inc.
New York

14

&&- ULiir

mmrm

I

^11 :(i;'

yv,

H>MHtf y%' -"MM

*

The Commercial and Financial Chronicle

(£289)

situation which

American

Capital Abroad—
New York City

Here

of

light

firm's

financial

December

the

to

as

his

in

furnished

facts are

news

expect

may

we

non

corporations'

international finance

in

recent

develop¬

outstanding

the

been

has

abroad

investments
among
ments

in

ularly

Direct

the

i

emphasis

s

shifting to
manufacturing

large

very

share

of

were

our

has

as

into

gone

rj

Esmond du Pont

Can-

ients.

is

have

But

nearly
in

been
in

even

half

major recip¬

Canada, where
billion stake

$10

our

those fac¬
tories produce mainly semi-manu¬
factures
such
as
woodpulp and
aluminum or newsprint.
More

recently, the emphasis has
heavily on manufacturing.

And the most notable increases, of

have been in western Eu¬
rope—especially in England, Ger¬
many and France.
Lesser benefi¬
ciaries have been Italy, Nether¬
course,

lands and Switzerland

(while, on
the other side of the world, rapid
gains

the

have been taking place in
Philippines and Japan though

the

totals

there

still

This
both

.

buildup, as people who
things well know, is

such

offensive

defensive:

and

get inside barriers which
strict

our

even

more

exports and

porting

up

re¬

fu¬

bases for

new

in

prove

the

in

the

of

imports

.

that

fears

a

now, this hasn't been much of
problem (though that is not to
it cannot become one).

Of

billion

the

back to this country.

That total

run

lot

and

at the

of

a

will

this
over

the

^oe^sing

have

long

matter of guess¬

present time.

direction

ments
now

largely

are

work

all

the

about

of

recent

But

a

scope

develop¬

is removed by new studies

being completed by the De¬

"com¬

say

factories

industry

are

ally classified as cheap-labor or
low-cost-of-production areas. Up

bought

effects

we

,

peting with ourselves" center on
the imports from what are gener¬

owned

home

U.S.-

(less than one-fourth of
our
total imports of such prod¬
ucts).
•

to

80%

almost

as

dollars

and

worth of

semi-manufac¬

from

from

Canada.

made up mainly of

aluminum

and

news¬

previously mentioned."

About

announcement

is

neither

an

offer

sell nor a solicitation of
The offering is made only

offer to buy any of these securities.
by the Offering Circular.

New

in

$5.4

John

S. E.

Barker

S.

in

each

both

output of all the

other ventures in which

American

roll

industry has invested abroad,
up

a

more manufac¬
comparable prod¬

50%

for

counted

the

than

tures

exported from plants in the
States. But the extent to

ucts

mwi

displaced

actually

these

which

Salvatore J.

exports—and the extent
to which
they satisfied markets
not
otherwise >,available, tpf us—
remains
an
unanswerable ques¬

Wilbur Krisam

Rappa

American

'

.

Over

'
.,

^

f

First Vice-President:
Second

Elbridge H. Smith, Stryker & Brown.

Vice-President:

Lt Pt

'for¬

Treasurer:

operations are calculated to
increase and support world trade.

Directors

C.

Common
10c

Stock
Per

(Two-year Terms): Joseph R. Dorsey, Bache & Co.;
Forbes, Shearson, Hammill & Co.; D. Raymond

the short run and at a
time like this, they add to balance-of-payment problems.

Kenney, D. Raymond Kenney & Co.; Lewis H. Serlen,

the capital we
foreign invest¬
ments
earning assets.
They earned us some $3.3 billion
last year, the Commerce Depart¬

Co., 1960 President, was held at the Harbor View Club and was
followed by a Cocktail Hour and Buffet Dinner at which over
700 members were present.
'

But, for

In

Co.

while

-

.■

election, presided over by Barney Nieman, of Carl Marks

The

payments
to about

to the United States came

billion (the same as in 1957
the declining oil reve¬

$2.2

since Suez).

Meanwhile,

"

we

.

;

of Ameri¬

talk

learning
So

some

comes

,

the

T.

Zuckerman

Lila

and

For R. C. Morton
BOSTON,

Mass.

—

This

to

buy

of

Security

house

at

the

is

announcement

offer

the securities.

any

not

of

On Jan. 1 Filor,
26

Broadway,
of

December

Broadway, New York 36, N. Y.

8, I960' f




;

the

to

sell

or

The

a

solicitation

offering

will

New

York

Stock

Common Stock

admit Michael J.

(Par Value $.10

per

Share)

partnership.

Price $2.00 Per Share

Garvin, Bantel to

Copies

from

Admit Mrs. Seits
120

Jan.

as

1, Garvin, Bantel & Co.,

Broadway,
of the

New

York
York

Stock

will

E. Seits to

partnership.

is the firm's

R

admit-Mrs. Anita

Exchange,

Mrs. Seits

purchasing agent.

.

the Offering Circular may be obtained
undersigned and from such other dealers

lawfully offer these securities in

United

City,

New

of

the

may

;

1

this

state.

Planning
R

A

I

1180 Raymond Bouleverd, Newark 2, N. J.

(N. J.) MArket 4-2727

of

is, made

the Offering Circular.

Techni Electronics, Inc.

Bullard & Smyth,
York City,

New

and Robert M. Schroder

members

1457

offer

securities.

to

be

Club Dec.

112,500 Shares

Admit Partners

On

HARWYN SECURITIES," Inc.

an

these

Analysts

Mid-Day

Filor, Bullard to

Share

'

guest
speaker
at the luncheon
meeting of the Cleveland Society

Org.

as

fields.

CLEVELAND, Ohio—Leonard P.
Air Products, Inc., will be

appoint¬

The

ment of James V. Dcolin

I

fund

Pool,

Doolin Named Counsel
January 2, Hugh G. Petersen,

a

College

Cleveland Analysts to Hear

To Admit Partner

Exchange,

Copies of the Offering Circular may be obtained from the undersigned only in such states as the undersigned may lawfully offer

mutual

Degen-

stein to limited partnership.

Jr., will
become a partner in
Montgomery,
Scott &
Co., 120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬

Doolin,

Harvard

Jan. 1, will admit Charles R.
Alloway, member of the Exchange,
to general partnership, and Ruth

v

Montgomery, Scott

to

per

graduate of both
and the Boston
College
Law
School, has spent
the last 11 years as a legal advisor
in the investment counseling and
Mr.

Co., 61 Broad¬
New York City, members of
New York Stock
Exchange,

on

.

State Street, was
Bernard
Carver,

President.

Zuckerman Smith &
way,

to do things their way.
mutual
understanding

of it.

B.

131
by

announced

To Admit Partners

And
Europeans, once wary of Ameri¬
can
capital, talk of how we are

Or¬

the

ganization,

,

canizing European industry.

C. Morton

counsel for

Zuckerman Smith

despite
nues

Downey

Offering Price $2.00

Josephthal

■

&

to build
represent

estimates,

ment

&

event,

any

export

members

Share)

.

i

& Co.

Wilbur Krisam, John C. Legg

eign

Raymond

,/

?-

only by

Softol, Inc.

Cruttenden,

Dawson-Smith,

E.

Secretary:-Salvatore J. Rappa, Mergott, Rappa & Co. ^

an

150,000 Shares

S.

Podesta & Co.

J

period of time, our

a

change.

Issue

(Par Value

Elbridge H. Smith

Dawson-Smith

electrical and
non-electrical machinery.
These
manufactured
products,
lion

million

to

an

1959

up

billion

$3

billion /in trans¬
portation equipment, and $2 bil¬
chemicals,

On

This

almost

of

.

worth of
goods came from American-owned
plants in Europe.
A very large
portion of that figure was com¬
posed of automobiles and automo¬
tive products — a not unfamiliar
$200

rolled

Europe

in

plants
volume

American-

abroad last year,

came

was

woodpulp,

print

$440

tion n

billion

Most

to

manufactures

owned factories came to about $1

tures

The

more

while

and semi-manufactures from

try are beginning to lose out; and
perhaps
to
send
manufactures

'on

of

year

properties).

Our

manufactures

markets

last

opera¬

earnings topped $1.1 billion (with
half the profit being reinvested

where we
fear direct exports from this coun¬
into

sales

in

billion

$21

(up from $74 million
million).
Investment in
primary metals and electrical ma¬
chinery in Europe now, come to
about $275 million each.
*
/:
On the sales side, U. S.-owned
in chemicals

United

manufacturing

resulted

tions
than

million), and

$192 million to $603

by the Department of Commerce).
Sales of the factories alone ac¬

recorded).

ever

(up

$175 million to $674 million).,
transportation equipment, dominantly
automotive
(up from

still high¬

go

after write¬
offs, grew by more than $1 billion
last year (the largest single year's
Foreign

machinery

electrical

-

^

in

capacity

fairly formidable volume of
business—$32 billion in 1957 (the
latest available total as compiled

this

billion

investments,

increase

John S. Barker,

President:

has

emphasis has

manufacturers'

of

value

New York (STANY)
office during 1961:
Lee Higginson Corp.

from

along with the
and equip¬
$1.2 billion last

1961.

The

ex¬

restrictive

ture; to set

now

may

to

in

direct

im¬

not

are

pressive).!
follow

er

large

as

plant

for

will top $1.3
and promise to

year,

manufacturing,

been

than three times

1950.

year,

jj

ada, Latin America, and the Mid¬
East

in

ment abroad were

mining and

dle

in 1950; those in Europe now

Outlays

petrol eum,
metals.

of

more

are

foreign in¬
vestment

value

a

Over the years
«a

manufacturers

States

nearly $10 billion in
foreign affiliates and subsidiaries,
two and a half times what they

materials.

raw

kinds

all

of

hold direct investments with

now

YORK

ASSOCIATION OF NEW

TRADERS

Security Traders Association of
elected the following members to hold

in

investment

United

than

rather

our

on

abroad:

(including petroleum, mining, and
public utilities as well as manu¬
facturing) rose to almost $30 bil¬
lion in 1959, up from just under
$12 billion in 1950.

true

that

Commerce

of

$30 Billion in Direct Investments

years.

This is partic¬
now

partment

investments

SECURITY
The

direct manu¬

our

years, the dominant
been
on
additional

shipments here or displacement of exports abroad.
Growth of American

di¬

less

the

or

$2.9 billion in 1959. In recent

than

either direct

—

States

facturing investments in Europe
from $932 million in 1950 to more

for whatever light they may cast

paper

NOTES

NSTA

our

may

what

increased

We

It is premature to gauge the effect of

of competition

amount

that

Europe

displacements of U. S. prod¬
in third markets.

ucts

capital outflow upon our own economy, he points out, but some

the

in

on

United

rect

the composition, extent and flow

his

in

abroad

investments

our

magazine "Investor News."

under¬

about

facts

some

are

investments

the

changes in

8, 1960

is to be ex¬
pected in the way of competition
—either direct shipments back to

By Edmond du Pont, Senior Partner, Francis I. du Pont & Co.,

analyzes

Thursday, December

Competition

Possible

Weighing

cast

duPcnt

.

taking to do something about.

Its Problems and Profits

Mr.

Detroit is

.

.

N

1

<

(N. Y.) WOrEi 4-5616

held
15.

V,

Volume

192

Number

6010

.

.

The Commercial and Financial Chronicle

.

(2291)

Consolidations

New

•

Branches

New

•

Revised

•

Procter

Storms, all

E.

and

Bruce

will

in the bank's foreign
*

*

:!«

-

rectors

has

been

County

Bank, Toronto, Canada,

A.

succeeding

C.

Ashforth

Capitalizations

the close of business

on

Jan. 17.

and

James F.

named

*

of

John J.

Sullivan

Vice-Presidents

The

Bollella

A.

2

Horace

by

Reed

Trust in
-

Mr.

in
t'

to

came

Mr.

Bollella

joined

.

.....'.

bank

Allen

■has

T.

Lambert

retired

with-the
•as

is

a

A. C. Ashforth

after

bank

Director. At

service

years

will

York,

continue

youngest man'- in the his¬
tory of the bank to be elected to

ant

E.

;

Alberta

Manager

At

•>.

*

;

*

-••••

Ed¬

;/

•;

r

MacConnach

Vice-Presidents, George Cham.pion, President, announced yes¬

Both'men, who

AThe

pension trust division of the trust

department,
head

at

are

'.the

25

.poipted

personal

a

was

trust

MacConnach,
in

1933,

officer

personal trust officer in 1947 and
in

1955.

Also

announced

yesterday

the promotion of Louis P.
James

B.

was

ternational department.

Buglioli,

•

..

rate

appointed

were

trust

officers,

,B,. Schultz

named

was

/■

The

.

-

*

-

Chase

'

,.

Cates

and

John

"

'-

Robert

■■■:'

r

<

"r'

J.

•_

>!t

Henry

*

\

.

J.

\

Earl

'

G.

personal banking; and
Baird, Frank P. Eklund,
Johnson and George;A.

Nelson, Jr., personal trust. ..
A
Named Assistant Managers were:

Manhattan Bank, New

Richard

F. H.

.

an

offer

sell

to

'these securities.'The offering

or a

G.

solicitation of

>

Bardsley,

an

offer

to

buy

is made only,by the Offering Circular..

J.

General Automation

Schroder

Kearns

and

Nov.
•,

.J,

.j.

E.

Mc-

the

v

''

..

'

.

J

(

Trust

and

National Bank of Israel)

to

Pitts¬

of

the

an

an¬

bank.

Pa.,

appointment

Jr.,

Trust

has
of

Co.,

announced

George

But-

Vice-President

as

"

*,

stock dividend, The National
of
South
Dakota,
Sioux
Falls,
S,
D.,
has
increased
its

000

Long

Island,

National

,

York

and

Trust

Trust Company, York,
Pa., and The York National Bank

Company,

Huntington,

consolidated

of

Bank

N.

The

Y.,

Pa.,

York,

of

97,371 shares of

stock, to be underwritten by
managed by Bache & Co.,
according to Herman H. MaasS,
The shares

will be offered to stockholders
the

basis

of

one

new

$1,000,000, effective Nov.
(Number of shares outstand¬
ing — 10,000
shares, par value

$100.)

share

the

Comptroller

Charles

L.

#

Central

i|:

National

Trust

Company

Okla.,

has

$750,000 by

its

Currency.

Trust

of

board

Ashmorp... has

The

Newport

Bank

.Richmond, Va., it

Paul

any
'

of
,

^

a

22.

(Number

Com¬

■

A-:

;

*

■

*

*

Director

new

of

was

been

Montreal,

'

becomes

now

is

and

D.

R.

a

'

Vice-President

appointed to the Executive

Committee.

'

-

-

Virginia,

have

approved

proposal to convert from
chartered

has

held

a

number

of

as

Manager

in

he

was

General

appointed

Manager

and

A.

-

•

Searle

elected

Leach,

Admits O'Connell

.

Bartow

Leeds & Co.,. 1 Liberty
Street, New York City, dealers in

a

a

state

S., Government

and

bank

to

a

national

•

♦

•

share

J.

O'Connell

to

general

ship in their firm.

6,

1960

•

Common Stock
(par value 10 cents per share)

Corp.
Offering price $1 Per Share

-.,

Kenneth Kass

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

Copies of the Offering Circular may

•




Square, New York 5, N. Y.

Underwriters
r

5 ,

,v.,Karl Edden Co.
63 Wall Street

63 Wall Street
New York 5, N. Y.

4 Hanover

..f

.■

New York 5, N. Y.

H. S. Simmons &
2 Broadway,

Co., Inc.

New York 4, N. Y.

municipal

securities, have admitted Edward

Vacudyne Associates, Inc.
•

been

Bartow Leeds

203,000 Shares

I

has

Director of the bank.

a

December

,9

Deputy
became

General Manager in March of last
year.

NEW ISSUE

'•

ap¬

including periods
of the main offices

Underwriters
Price $2 per

Berlner Bros.,

senior

pointments,

.D.

*

■

Mulholland,

General
Manager of the Bank of Montreal,
joins the Board as a Vice-Presi¬
dent, remaining as General Man¬
ager.
He entered the
bank
at
Peterborough, Ont., in 1923, and

The stockholders of the City Bank, ,U..

Mich.,

a

by
Montreal,

announced

,

Detroit,

of

Bank

and

announced

were

(Par Value 2c per share)

from such other dealers as may

'i

Vice-Presidents

new

News

*

the

•»

of

outstanding—75,000 shares,

of these shores having been sold, this announcement appears as a matter of record only.

'

common

$300,000
to
stock dividend, ef¬

value $10.)

par

of

by Herbert C. Moseley,. President.

on

The subscription price

All

and

Enid,

from

Nov.

shares

Bank

Enid,

increased

stock

fective

of

*

the

to

for

of

*

❖

The

;

/

elected

every 10 shares held as of Jan. 17,
subject to approval by sharehold¬

and

and

!ji

group

President of the bank.

Bank

title

com¬

mon

a

York

the

under

pany.

plans to increase its capital by the
issuance

to

21.

1958,
The

•;•.

Security

capital stock from $750,-

common

■

The

a

Bank

Victoria,(.Ottawa and Montreal. In

.

is mark¬

its 10th anniversary of its
U. S. operations here this month.
■

been*

by Frank R. Denton,

of the bank.

(Hebrew for

announced

Harold S. Foley, who has been a
Director of the bank since 1954,

;

'

»

has

Company,

Pa.,: according

Chairman

terworth,

•

ing
1

30.

Banking

John

Common Stock
.

be

!jt

McWilliams

nouncement

100,000 Shares

....

R.

burgh,

December 5, 1960

C', 'At;-' *-

■

to

Jjl

■

„

date

Manager of the Wilmerding office of Mellon National

Vice

■4

NEW ISSUE

•

James

Lucas, Addison L. Luce, Jr., Mor¬

Brau, President of The Kings

This announcement is not

'

.

effective

Philadelphia,

ers

York, N. Y., has appointed Charles

•.

expected

■

*

Namara Vice-Presidents,

■

Kin¬

the

&

*

Canada, Dec. 7.

and

Fidelity-Philadelphia

G.

H<

the

Troy,

was

Mid¬

have

*

Manufacturers

liam

Secretaries

electronic \Kurtzke,
•

..

Mich.,
plans to merge.

personnel; Harry R. Day, Rocke¬
feller
Center
office; Joseph
J.

corpo¬

and;. Howard

.;research officer. y.>

'..•£•

Bloodworth,

Appointed Assistant Treasurers
were:
Ralph
Clark,- operations
research;
William H. Davidson,

Ernest L. Loser and Howard W.

Tagliabue

.

the

Bank

Mich., and the
Bank, Vernon and

Two

Bank

and

Loan

i

M.

into

*

-

■;

.

C.

office.

in¬

the

in

;

Assistant

Benjamin

Bank,
and

name

National

Flint,

State

capital

The Salem Na¬
Salem, New York,

Corp., New York, has elected Wil¬

York,

,

•-.•

-

Co.,

Byron,

merge

Personal

Bank Leumi le-Israel

office; Raymond M. Tierney, Jr., 34th
Street office," and
Richard W. Riffel, Church Street

Jr.,
Peter
Heesch and John R. Petty to As¬
sistant Vice-Presidents

New

-

.

*

of

Assistant

'

Carbide

Greene,

,

Bank,

Bank¬

appointed

.J,

'*

State

City

Merchants

the Manufacturers National Bank

Personal

Plan; ,and Michael
Pfeifer, Accounts Receivable.
The

York

*

By

bank's

the

Genesee

Trust

change will be

Detroit.

National Bank of Troy, Troy, N. Y.
The banks will take the title of

Charles

u*

*

officers:

new

with

Secre¬

Time

land

con¬

a

dred, personal trust; Richard D.
Connington and Howard E. Schurman,
Rockefeller Center office;
William M. Crozier, Jr., and Wil¬
liam G. Sayres, out-of-town divi¬
sion; Paul C. Kelly, Chrysler of¬
fice; Lindsay1 Macarthur, credit;
William
F." Ogden,
Jr.; Union

advanced to Assistant Vice-Presi¬
dent

Hanover

David

ap-

who joined
appointed a

was

Walker,
Department;

Mann,

.

1952 and was promoted to As¬
sistant Vice-President in 1957.
Mr.

*

were:

in

.Chase

''1 *

.

Named

Lindberg joined the Chase

National Bank in 1937. He

A.

to

tional

new

,

Banking; Richard R.
Comptrollers;
Eugene • T.

Link,

has announced the appointment of

bank's

office.

Mr.

to

International

„

New

Nov. 25- the
Comptroller of
Currency approved an appli¬

cation

departments

"

in the

are

a

-

.

as

Mr.

Assistant

were:

John

the

'

becomes ef¬

merger

Governors of the FederaLReserve

A.
Amend
William A. Stuart, Commer¬
cial
Loan; Fred W. Gaus, Real
Estate; Alexander M. Gregory, Jr.,

-t,i. j.

sultant.

to' the

elevated

in

posts

Trust

Treasurer

the bank in Rome

Assistant

the

members

Hainfeld,

ing Department and the Board of

and

same,

.

Vice-

On

Treasurers,

ad¬

the

the

Mine¬

tary,

appoint¬

been

Assistant

former

Adam{

fective, approval must be received

Assistant

were

indicated

.Jr. Castiglioni will continue to

sei /e

to

terday.

the

Rome.
..

L.

has

Before

an

Vice-President.
to

by

Frederick

Jr., Presidents of the two banks.

Vervoort.

R.

bank's

official

,

The Chase Manhattan Bank, New
•York, has promoted Jean M. Lind-

berg and Donald

from

this

New

made

was

and

System.-

Staff

New

Casti-

time, Minos Zom-.
banakis,. representative of Manu¬
facturers Trust Company for tne
Near-and Middle East, also was
appointed an Assistant Vice-Pres¬
ident. .His office likewise is
in

monton, has been named General
•Manager to succeed Mr. Lambert.
sis

with

Muller

han, to its Coal & Iron office.

to Assistant Vice-President.

the

.

at

Augusto

nouncement

rep¬

formerly

was

52nd Street Office and

appointed

Company,;

Gombi

Mr.

vanced

>

of

'

Division

<

Trust

succeed

connection

ment,

Hall,- former' Assist¬

General

.bank's

A-..

Manager.%

Albert

to

,99.6%
of the Long
Island
Trust Company shares were voted
in favor of the
merger.
The an¬

Textor>

in

The

meetings held

and

an¬

hardt" is .assigned

;C

.

Flanigan, Chairman of the Board.
In

*4he " top, post
He formerly held
•the position of Vice-President and

r-

*

'

been

glicni, who will retire at the yearend, it was announced by H. ,C.

48, Mr. Lambert

the

'General

*

i

has

of

separate

Of the votes
cast, 99.0%
Lindenhurst Bank shares

Treasurers, William A. Gebhardt
and Joseph A. Minehan. Mr. Geb¬

the ' bank

representative in Rome of Manu¬
facturers

50

but

-t

Gombi

Paul

was

President

*v

?

"V

Nello

C.

bank

-Vervoort

Advanced

1956.

in 1949.'

Com¬

been

at

29.

from

a ••

the

Nov.

posts at

Vice-President,
the

Assistant

joined Manufacturers

Sullivan

staff

Trust

has

York

George

a

England,
Mr.

•

Midland

by

resenting

C. "Flanigan,

1946.

eight

official

new

New

Elected

Chairman of the Board.

Mr.

of

President.

of Manufacturers Trust Company,
New York, N. Y., were announced
Dec.

of

nounced

Assistant Secretary

an

as

Michael

to

Marine

pany

Assistant

as

and

Vernon

the
the

to

of

The

tutions

members

and

Bank

and

*

two weeks

made

The merger of The Lindenhurst
Bank, Lindenhurst, N. Y., with the
Long Island Trust Company, Gar¬

New

*

election

In

changed

*

City, N. Y., was approved by
the stockholders of the two insti¬

the

association,
a
move
Comptroller
of
the
Currency provisionally approved.
the

den

Company,
*

*

at

The advancement of three officers

Appointments of Francis X. Reed
and

to

O'Donnell, have

Vice-Presidents

Trust

*

Brooklyn

*

Di¬
stock

record

Brooklyn,

*

the
2%

a

of

been

Bank,

who

declared
holders

W.

N.
Y., to the Bank's
Advisory Committee,

elected President of The TorontoDominion

Savings

have

banking
which

dividend

Vice-Presidents,
John
Fiske, Jr., Arthur B. Griffin,

York.

Lambert

determined at the annual

Assistant

Bankers

Allen>T.

be

meeting on that date.
Subject to approval,

department

Jr.

Offices. etc.

B.

gan

NEWS ABOUT
BANKS AND BANKERS

15

B. N. Rubin &
56 Beaver Street,

Co., Inc.

New York 4, N. Y.

partner¬

*

16

BANK AND INSURANCE

STOCKS

LEO I. BURR1NGTON

BY

CHICAGO, 111. — Audran J. (Pat)
Cavanaugh has joined the Reyn¬
&

This Week

—

stocks

as

a

Insurance Stocks

r

Insurance,

and

Springfield

Fire

with

only about one-fourth of these issues showing adverse com¬

brighter side, gains continue for expense control.
Progress in this area reflects efficiencies made in internal opera¬
the

On

tions

well

as

changes in classes of business underwritten.

as

any

premium volume.
Impressive

in net premiums written

gains

1960

(sales)

are

being made which build up future profits. Thus far in 1960, in¬
creases by
Northern Insurance, Springfield Fire, Aetna Casualty
and Security-New Haven stand out. Only merger candidate New
Casualty registered

Amsterdam
far this year

show

increase over 1959, and while hurricane dam¬

an

it is important to remember that sizable percent¬

age was severe,

of such losses

ages

While fire losses thus

decline.

a

not insured. Orthodox insurance companies,
competition, have been introducing

are

in order to meet direct writer

rating automobile insurance in several more states during

merit
1960.

Leading Fire-Casualty Insurance Stocks
Underwriting

Approximate
$Gain

Aetna

Cas.

Aetna

(Fire)

American

Boston

Mean

Indie.

1960-1959

Price

Div.

a n

was

ced

-

by
W.

Mr. Cava¬

William

formerly associated with

partner. He
has been closely identified with
the securities business on La Salle
Street for the past 34 years.
Co.

Fuller &

A.

a

as

New York City, has
election of John

Reynolds, Jr., as Comptroller
to succeed Charles L. Sticker, who
J.

of James
Assistant Comp¬

retired, and the election
M.

Hartigan

as

troller.

Reynolds, formerly an Ad¬
Assistant
to
Mr.

Mr.

ministrative

graduate of Manhat¬
tan College, New York University
Graduate School of Business Ad¬
ministration and La
Salle Uni¬
Sticker, is

versity

a

Prior

School.

Law

to

joining the staff of Harriman Rip¬
ley & Co., Inc., in August of this

61

86

*3.00

3.5

14

0.0

—2.8

year,

26

1.30

5.0

6

—0.9

—9.4

remco

Consultants.

-

23

31

33

1.80

5.5

10

—4.7

—5.1

81

*1.50

1.9

20

1.8

1.6

45

52

*2.20

4.2

6

—4.7

—4.2

48

58

1.00

1.7

12

7.2

8.8

80

-

55

Insurance

60

-

63

-

Co.

Fund

56

60

Reinsurance-

-

-

14.8

13.7

1

4.1

1.3

0.5

4

49

2.B0

16

15

4.1

-5.6

36

28

2.00

126

'

70

40

3.4

1.80

53

43

126

Insurance

Mr. Reynolds was with NaServices, Inc., Management

Mr.

staff

the

joined

Hartigan

.

42

-

1.00

2.8

15

—2.1

—1.6

although

42

-

2.0

*1.10

54

1.0

7

shares
in the lime¬
light. Aircrafts fared Well occa¬
sionally, notably Boeing which

-

46

60

2.20

3.7

10

—0.2

74

-

57

70

*1.80

2.6

8

3.1

0.9

Casualty—

43

-

21

39

1.50

3.8

7

1.2

—1.2

Bonding & Ins.

44

-

No.

National

Fire

Cas.

58

*2.00

-

0.6

N.A.

4.9

—2.5

of

Co.

in

came

June

&

be¬

staff

the

of

member

Harriman

and

1924,

December,
a

Harriman

Brothers

Brown

of

Co., Inc., in
where he has served

Ripley

1934,

&

able to make the week's new

was

highs'
around

Yr.-end Tax Forum

2.00

13

—2.9

At New School

2.00

3.5

3

—5.6

—10.0

*2.20

4.2

19

—1.9

43

57

-

41

53

Hampshire

Northern

Ins._

,

56

-

37

39

1.50

3.8

13

—5.1

71

81

3.00

3.7

1

—4.0

r2p

-

Cromwell, will pre¬
Tax Forum"

and

—4.3

at

St.

Insurance—

Paul

18

0.80

4.4

8

—4.4

1.2

58

-

41

54

2.20

4.1

N.A.

0.2

—1.7

17

•

Ins.

61

-

52

59

*1.44

2.4

7

1.9

2.5

Haven_

58

-

33

59

*1.20

2.0

25

4.6

Springfield F. & M.__

37

-

28

35

1.00

2.9

30

—3.1

less

decisive

industrials

by

there

average

Standard

64

-

45

51

2.00

3.9

12

—3.7

—0.1

the

traditional

once

the

tax

(Indem.)

—

Fidelity & Guar.

Western

Caslty.

&

^Improvement in
^Increased

cash

S.

.

tended

to

than

88

1.40

1.6

12

6.3

1.4

29

40

1.00

2.5

15

1.7

1.5

43

-

27

1.40

3.5

17

3.5

4.0

dividend

40

declarations

over

nine months of

during

1959.

i960.

With net investment income trending higher, insurance stock
investors are receiving increases in cash dividends this year. In¬
vestment

ward

a

income,

up

10%

for the industry in

comparable gain in 1980.

comparative

income for nine months

larations

include 10%

1959, is headed to¬

The table presented includes, for
company gains in
investment

over

the first nine months of 1959. Besides

the noted cash dividend increases declared to

declarations have been

numerous.

date, stock dividend

More recent stock dividend dec¬

by Federal Insurance and 3% by Security-

New Haven.

several

though

1960 is having its share of consolidation

Minneapolis
Insurance

into
Co.

Federal
into

Insurance,

American

Haven

the making

on

which

alty, while

a move

Peter L.

Bernstein, Vice-President

industrial

the year

Merchants

and

The

public

individual

by Hanover Insurance to acquire Massachusetts

attend

may

What

showed

in

on

Aireraf,'s

Oils and

reinvestment

is

in

degree

of

Nickel

around

at

five-

a

point discount from the value in¬
Norfolk

the

in

herent

& Western

proposal. Like other welldepressed railroads, the shares of
merger

a

themselves

in

Plate

Nickel

offer

yield in excess of 5%.

Similarly, the Santa Fe offer for
exchange to take over Western

an

the Western Pacific

finds

Pacific

selling around five points

well-de-

the

of the exchange.

Pacific

bid

for

is

that

making
a
Pacific

Western

although the thinking among rail

analysts is that the Santa Fe's bid
is more likely to be approved.
A New High Note

note

fresh

The

on

lists

the

of

the appearance of
an apparel item—Jonathan Logan.
This issue has been publicly held
only
since
last
February.
The
highs

new

was

feature that

this

to be attracting

seems

interest

in

for

hunt

item

is

acquisitions
and

lines

its

the help of

estimates

add

to

its

to

busy

expand
With

sales.

its recent acquisitions,
that

are

its

next

sales

will come close to doubling
the results posted in 1959. Its in¬
year

dividend

dicated

offers

above-

an

running

yield

ave^a^e

well

into

the 4% bracket.

in

item

One

the

food

group

that failed to share in the

for

demand

had

a

general

all

types of such is¬
Stores which
mundane market life
Fair

Food

was

has

demand

be concentrated

to

seems

some

still

recently, poised on its year's low
despite some statistical indication
that it warrants better attention.

pressed issues in the oils and air-

Food Fair is among

crafts. There

top supermarket chains. It is also

stirring in each

was

|

highs for
Airplane
and
Phillips
Petroleum recently.
Steels, already well shaken out.
to be

on

an

YOUNGSTOWN, Ohio
branch

have

Scribner

&

Deane

the

in

office

under

—

the

opened

a

Stambaugh

management

lists

note

new

as

committed

to

the half dozen

aggressive

ex¬

some¬

was

Columbian Carbon

has

It

had

picture despite
increasing
sales,
but
profit

to be in
a

a

gradually
currency

favorable

showing

some

was

which

talk that the1 divi¬

is

expected

to

year's

earnings,

creased

next year. At present

yield is
range

twice

nearly

an

this

by

could

be

for this year.
return

American

Stock

Exchange

Stock

York

New

Exchange

Telephone:
Bell

5, N. Y

BArclay 7-3500

Teletype NY 1-1248-49
in

Ronh

^tnrh*

Rails
merger

did

Still Dormant

little, with

fever

that

even

crops

up

the

out

follow

-

aren't

since

consum¬

Interstate

too

much

Conseauent.ly
the items that are

through.
by

some

of the sta¬

yardsticks.
Metro-Goldwyn-Mayer, for one, has been
available
at
around
eight-times
earnings

until
red

as

several
ink

made

investors remem¬

struggles the company had
year

picture,

mergers

Item

tistical

that

quickly

f-»r

year's

normally runs

without

steam

of

parently

rail

Value

ing picture shares

ber the

else¬

vear

This

2%.

was

Statistical

A

in

The occasional demand for mov¬

where
conspicuously absent.
It
might be due, in part, to the fact

mated

skin la^t

payment.

distribution

the

BROADWAY, NEW YORK

such

and,

with ?m°ll
oui+e regu^^v

payments

although it did
any

an average

3%%

them

pads

they are among

this year has been less than
points.
Rails

It offers

nearly

undervalued

dozen

Laird, Bissell 8 Meeds
Members

of

the

above-average 5%. T^e

re¬

the

years,

in¬

be

in

current level is
around 14-times anticipated prof't
cent

this

3rd

120

18-times-earnings

around

good position to

and again nextymar. In fact,

there

a

a

erratic

an

covered

Request

ported in the current fiscal year.
Where the shares were priced at

stock

virtually static for nearly

decade.

BANK STOCKS

on

against something over
million expected to be re¬

1962

$800

been

dend,

Bulletin

by

addition,

year

Comparison

sales in the billion dollar bracket

and Interchemical. Columbian has

make

Quarter Earnings

rf

play in the printing ink

a

seems

11 N.Y. CITY

the

on

where

despite
their
welldeflated prices and good yields.

items, such

Singer,

areas

lows

Another

Sinqer. Deane Office

cf the

one

prominent

were

basis.

admissions

Members

Barring another major catastrophe, higher 1960 consolidated
earnings over 1959 are indicated for most fire-casualty stocks. This
improving trend, together with higher cash and stock dividend
declarations, should result in relatively favorable market action




11% decline

to the end of November.

Interest

thing of

A battle appears
and Security-New

Bonding has again been resumed.

issues.

im¬
will

area

average

shares

common
are

sues

new

of Bernstein-Macaulay, Inc.

will end up with New Amsterdam Casu¬

for the stronger insurance

gen¬

a

market

be sizable against the

the

pretty well assured.

the tax selling is heavv since they

with

Equitable Assurance

between Home Insurance

concern

was

that

expire,
maturity
is

seem

Director,
Commercial
Financial
Chronicle,
and

Co., and Standard Accident into Fireman's Fund.
to be in

in

would

at

payment

pansion activities and is aiming at

of Charles D. Arnott.
moves

the following: Freeport Insurance Co. into Springfield
Fire, Illinois National Insurance into New Hampshire Insurance,
Kansas City Fire & Marine into Glens Falls Insurance, Great
of

December

to values. Any

20%

as

their

Boeing

Money,

ways

covering intents toward merger. Al¬
of the actions have yet to become effective, they

Manufacturers

have

they
have mustered enough strength to
add
anywhere from five to as
downward

lease

the

maturity
come
due

group, including the new

Your

legitimate

include

Northern

In

November,

there

since they

and

before

well

are

their

will discuss
in which to real¬
ize
tax
savings.
The course is
conducted
by
A.
Wilfred
May,

aging

announcements

many

when

even

in

in

in¬
are

one

Building

The year

the

Darrell, who will be a guest
the New School course, Man¬

individual

purposes,

rally
out.

rallies

late

late

its

and

78

-

i960

start

prices

easy

wasn't

runs

such

They

is
to

Executive

-

43

of

when

year-end

selling

pressure,

there

Mr.

°

102

nine months

tax

but

from

counter

when there has been much

years

proposal,

overpriced.

but

within
high.

seniiment

Street

Wall

there

Wabash

discounted

the

overly cheerful, except that there
were still high hopes that the list
will stage something approaching

to

of
Accident—

Travelers
U. S.

M.

still

was

not

of

bonds are available and

come

Southern

margins. Utilities

reach of their 1960

the

The hitch in this situation is

selling around and their

was

the

reflect

matter

stock

under the value

any

sympathetically,

very narrow

Norfolk

ine

common

showed

to

Rails followed

work.

between

do

averages

disposition

mustered mild strength even

being
held
at 5:30
p.m.
today
(Thursday, Dec. 8) at the New
School
for
Social
Research, 66

—2.3

&

other

The.
even

In
no

shares

to expectations.

"Year-end

a

3.7

F.

Security-New

once

area

wouldn't

up

West 12th Street.

Providence-Wash. Ins.
Reliance

on

bottom out be¬
fore at least 580, it gave ground
stubbornly and was still clinging
fairly close to the 600 line with¬
out showing any intention of liv¬
ing

connection

systems.

The

aver¬

through

broken

two

Plate

industrial

the

provement

Darrell, tax authority and
in the law firm of

0.5

-

side
Insurance

billion dollars

a

the downside of the 600

again,

much

Partner

Sullivan

52
85

Insurance—

Phoenix

that

having

age,

1.2

Norris

-

third of

a

for

contracts

announced

it

erally

Senior
New

convincing fashion

in

list

after

rather

Accountant.

as

2.3

3.8

1.8

110

149 -102

Ins.,.

Amsterdam

41

30

utility

appear

1.0

62

of

Maryland

New

55

Co._

Insurance

Co.

Mass.

Ins

Amer.

Home

Ins.

Fire

and

interest in it after

plus purchase of Penn¬
sylvania's Sandusky division, a

was

run-up

profit-taking.

attract

able to

were

and
Hartford

long

the

to

periods

good

some

tobacco

Some

dictions

the

announced

-

-

for

lows

new

Despite rather widespread pre¬

Co., Inc., 63

&

Ripley

Wall Street,

91
32

to

Averages Indecisive

Appoints Two
Harriman

the
Plate

purchase Pennsylvania

Railroad's 99%

111-mile

had

Foods

Harriman Ripley

Co.

36

slide

the year.

worth of commercial jet planes.

17%

Co.

selling to

high, and

fairly

volume

starting

naugh was

1.3%

Ins.

volves

option to

Cavanaugh

Audran J.

$1.20

Casualty-

Falls

2.7%

broad, trad¬

were

to

proposal caused hardly a
The deal for Wabash in¬
a
50-year lease with an

merger

ripple.

The markets

Wabash

Western-Nickel

&

six years,

ner.

93

Fidelity & Deposit

Glens

2.9%

early.

the

Adding
Norfolk

the

Cunningham,
resident part¬

66

Federal Insurance

General

1959

year-end cleaning up

to

comes

slowly.

ing

James

-

Insurance

Fireman's

1960

much
taking place

pointing

approval

that

and

necessary

well-depressed items in the steels
and motors still under enough tax

noun

91

Insurance

Continental

—9 Months—

Income

Yield

still

cations

is

aimless, with the indi¬

better than

Commission

Commerce

trading

it

Surety

&

Continental

Profit Margin

Invest.

Recent

Bid

Price-Range

special

on

rtment,

e p a

Com¬

insurance line can differ sharply from the
industry's experience, since such diverse trends depend on the
degree of success in careful selection of risks, market served, con¬
trol of expenses, alert property loss adjustments and expansion of
experience in

pany

concentrated

STREETE

d

further during the

parisons at midyear 1960 with the six months' 1959 period.

a

of

this

interest

market

stock

situations with the general list no

the firm's un¬

deepened

three-month period. A nine months' compari¬
son shows
17, or approximately one-half, of the companies pre¬
sented in a less profitable underwriting position.
This contrasts

and

The
week

AND YOU

..

.

listed

Glens Falls Insurance, Massachusetts Bonding and Insurance, Na¬

Phoenix

iste red

g

tative

Hurricane Donna, temporarily halted the healthy
market performance of fire-casualty stocks, a buying opportunity
was provided the insurance stock investor and many
issues have
experienced market recovery.
Nonetheless, since midyear 1960,
the underwriting experience of such companies as American Insur¬
ance, Home Insurance and Providence-Washington returned to the
loss column.
Also underwriting losses by Continental Insurance,
Fire,

e

member

last September's

tional

La

represen¬

continue to outperform
Even though a major catastrcphe,

group.

Co.,

South

Salle St., as a

Thus far in 1960 insurance stocks generally

Thursday, December 8, 1960

.

WALLACE

BY

Reynolds & Co.
39

.

.

THE MARKET

Cavanaugh Joins

olds

industrial

Chronicle

The Commercial and Financial

(22£2)

the

both

Ben

other releases

ago. Its last
1958 and ap¬
earnings turn was
with
its
"super"
years
was

Hur, and with its
plus building up its

\

...

Volume

192

Number 6010

.

.

The Commercial and

.

Financial Chronicle

(2293)

work

television.

for

the television

Its

work

in

series, now is estimated at ac¬
counting for some two-fifths of its
been

has

Metro

films

older

business

the

with

but

SECURITIES

releasing only

to

Columbia

-

time

of

falls

industry

in

of

students

the

line.

the

films

newer

before

in

higher regard than the older
bolster

could

and

film

ones,
com¬

more

above

an

average

return of

nearly 4V2% on a payment that is
likely to be only half of earnings
in the fiscal 1960 year. The com¬

has also been buying in its

pany

in

shares

own

whittling

the

open

at

away

market,

the

shares

[The views expressed in this article

Middle

South

the four

Utilities

is

of

one

holding companies which

set up

in the South follow¬

ing the breakup

the

of

big

sys¬

tems by the SEC during the 1930s
and 1940s. It was incorporated in
1949

and

controls four companies
had already been serving

which

their

for about two decades

areas

—Arkansas Power & Light, Loui¬
siana Power & Light, New Orleans
Public

Service

Power

&

and

Mississippi
Louisiana Gas

Light.

smaller

subsidiary
which accounted for about 4% of
system
revenues,
was
divested
a

not

N.Y. Inv. Assoc.

million in the three states Arkan¬

Holds Ann. Dinner

Louisiana and Mississippi

sas,

shares

Investment

The

held

York

New

dinner

6

Dec.

Astoria.

Blyth

Association

its

at

James

the
F.

Co.,

&

10th

of

annual

Waaldorf-

Burns,

III,

the

Southern

ties).

latter

state

Company

Louisiana

with

The

with

States Utili¬

leading

Bluff, Vicksburg and Jack¬
in

Revenues

1959

Inc., President

son.

of the associa¬

electric, 11% gas and 4%

tion

but

presided

ing which

of

by

about

and

vitz
of

Hon.

was

a

whole.

During the two decades 1939-1959
farm
income
quadrupled,

guests
James F. Burns,

III

Ames, Chair¬
the

as

cash

Amyas
of

vicinity.

by the Middle
has
not
enjoyed

system

Joint

Committee

on

from

million

$381

to

annually

$1,749 million. Formerly the em¬
phasis was on cotton but during
the

Bache, Bache
& Co.; Charles Bergmann, R. W.
Pressprich
&
Co.;
Frederic H.
Brandi, Dillon, Read & Co., Inc.;
Philip W. Brown, Smith, Barney
& Co.; James Coggeshall, Jr., The
First Boston Corporation; Lloyd
S. Gilmour, Eastman Dillon, Union
Securities
&
Co.;
Lloyd
B.
Hatcher, White, Weld & Co.; Rob¬
ert C. Johnson, Kidder, Peabody
& Co.; Lee M. Limbert, Dean Wit¬
ter & Co.; Donald N. McDonnell,
Blyth & Co., Inc.; Herbert W.
Marache, Granbery, Marache &
Co.; Ralph C. Sheets, Blyth & Co.,
Inc.; Wickliffe Shreve, Hay den,
Stone & Co.; Raymond D. Stitzer,
White, Weld & Co.; John Trubin,
Javits, Moore & Trubin; and Wal¬
ter W. Wilson, Morgan Stanley &

past decade there has been a
rapid
increase
in the growing

Co.

worker

Education;

Officers
Mr.

Harold

of

the

Association

are

President; Frederick
S. Wonham, G. H. Walker & Co.,
Vice
President; Arthur B. Treman, Jr., Dillon, Read & Co., Inc.,
Secretary; and John E. Friday, Jr.,
Morgan Stanley & Co., Treasurer.

of

the

is

area

million

are

The

1949.

broilers

commercial

now

of

raising of
(about 240

produced in the

annually) has become an¬
other important source of cash
income
and
plants
processing
area

and

broilers

employ

now

other

food

products

65,000 workers.

over

Soy beans have also been an im¬

portant new product, production
increasing 768% in the past dec
ade. In spite of the big gain in
the value of farm products, farm

employment has declined about
one-half while productivity per
increased

has

The

principal industries in the

building materials,
ice,
cold
storage
and
packing
plants, oil production and refin¬
ing, textiles, mining and alumi¬
num
processing.
The. area ha?
shown
greater
improvement in
manufacturing than the U. S. —

Admit 2 to Firm

production

wages

Midwest Stock Exchanges, on

Jan.

2 will admit Robert M. Beak

Edward Jacobsen to part¬

better

showing than the U.

S.

will

study

sponsor

of

has

been

the

new

discoveries

resistance

by the oil and

in¬

gas

dustry, and millions of additional
dollars

expected

are

to

be

spent
in the future for
drilling, explora¬
tion,
production,
and
pipeline
construction.

types
and
the
heat
in Louisiana, however, the

ing President of the Association.

low cost of gas for house heating

approved by delegates to the 49th
Annual Convention of the Asso¬

pump;
makes

result

of

this

rapid
nomic growth Middle South's
a

annual

increased from $100 million

enues

in

eco¬
rev¬

1950 to $214 million

recently—

although the latter figure will be
reduced

somewhat

by the sale of

Louisiana Gas Service.

38%

The

com¬

revenues are

pany's electric

about

residential

commercial,
10%

and

rural, 26%
industrial and

26%

miscellaneous.

A

System

capacity has been in¬
rapidly, both to take care

creased

of

small

during 195054). At the end of 1959 generating
capability was 2,745,000 kw com¬
pared
with
the
summer
peal,
load of 2,255,000 kw,
indicating
reserve

a

was

of

reserve

22%.

The

company

rate

of gain
in

revenues

the

of 7%
future.

the

be

automation. The next unit will be

installed in
The
gram

1963.

system
for

1960

construction pro¬
approximates $81

million. To finance this and repay
bank

subsidiaries

loan,

tional

equity financing until late
1963 or early in 1964.

in

Middle

South's

consolidated

earnings per share did not showvery rapid progress until recent
years. Due perhaps to regulatory
problems in Arkansas, share earn¬
ings increased only from 91 cents
in 1950 to $1.03 in 1953, then de¬
clined

to

cents

97

in

1955.

however, earnings have
increased steadily to an estimated
$1.50 for 1960, or an average an¬
nual

increase

pounded.
creased

The

from

the

current

the

common

of

9%

over

dividend
55

cents

in

com¬

has
1950

in¬

ever,

due

gained
to

the

the

of

9%. How¬

over

in

cutback

Reynolds

plant kwh sales

num

op¬

Alumi¬
down

were

nearly 9%;- revenues were par¬
tially protected by the terms of
the Reynolds contract, and showed
an over-all gain of 2%.

Nineteen-sixty-one earnings will
be affected somewhat

aluminum

plant
show

recently

conditions

in

by the

since

closed
the

the

down

construction

on

somewhat

smaller

The

will

next

Gas

be

to

study

conducted

should

provide

Service.

interest not

bankers, but
institutions

country. It will
by
the
Wharton

the

direction

of

and the
development of other natural re¬
sources.

the

The

area

now

The

$150,000 project will be
by a special assessment

financed

upon the member firms of the As¬

sociation.

Further

precise nature

study

will

details

and

be

the

Since
been

Associa¬
hold their

America

tion

of

50th

annual

1961

will

meeting

at

the

Nov.

26

Hollywood

.Beach Hotel, Hollywood, Fla.




to

1949

in

$2
new

billion has
plants of

petrochemical, petro¬
leum refining, aluminum, build¬
ing materials, and pulp and paper
industries. Over $1.5 billion has

chemical,

been

invested

in

the

Louisiana

the

of

the

announced

at

a

later date.

Join

Training Course
Of

ST.

(Special to The Financial Chronicle)

SACRAMENTO, Calif. — Richard
V. Baldry is now connected with
Irving Lundborg & Co., 926 J
formerly with

Mitchum, Jones & Templeton.

Fusz-Schmelzle

LOUIS, Mo. — Three women
in training to become regis¬

are

representatives

Schmelzle

&

of

Fusz-

Co., Inc., 522 Olive

Street, members of the New York
Exchange.

Stock

Miss

are

Emma

Mrs.

Meta

Dravenek

Thielker,
Mrs.

and

Mary Huchzermeier.
Richard
President

ing

of

A.

Schmelzle,
Director

and

Fusz-Schmelzle

of

ViceTrain¬

Co.

and

states their firm believes

women

will play a more dominant role in
the
investment
world
year-byyear.

Biyth Adds to Staff

Tl\e three women are part of
group of eight men and women
currently being trained by FuszFRANCISCO, Calif. — John
Schmelzle & Co. The firm recently
B. Stuppin is now affiliated with
opened
new
offices,
specially
Blyth & Co., Inc., Russ Building.
designed and equipped for women
He was formerly with Walston &
investors, at .522 Olive Street in
(Special to The Financial Chronicle)

a

SAN

St. Louis.

Co., Inc.

With Townsend, Dabney

Joins Hutton Staff

;

(Special to The Financial Chronicle)

SAN FRANCISCO,
liam

A.

Crump

Calif.

has

—

joined

,

Wil¬
the

s

(Special to The Financial Chronicle)

BOSTON, Mass.

—

Pauline M.

Betourney has joined the staff of

staff of E. F. Hutton & Company,

Townsend,

160

was

State

previously with McDonnell & Co.

York

Incorporated.

changes.

an

Montgomery Street.

offer

to

sell

nor a

He

Dabney

Tyson,

&

and

solicitation of offers to buy
the Offering Circular.

Boston

any

Stock

of these

The offering is made only by

December 7, 1960

NEW ISSUE

60,000 Shares

NAC CHARGE PLAN & NORTHERN

ACCEPTANCE CORPORATION
CLASS A COMMON STOCK
per

Share)

Offering Price $5.00 Per Share

Copies of the Offering Circular may be obtained from the undersigned
in such States as the undersigned may lawfully offer the securities.

only
I

SADE & CO.

BELLAMAH, NEUHAUSER & BARRETT

UNITED SECURITIES CO.

STIRLING & COMPANY, INC

30

Street, members of the New

production

over

invested

on

scope

ranks first

in

nation

Irwin

Prof.

Friend.

tered

Irving Lundborg

was

of

the

Commerce,
University of Pennsylvania, under

They

He

the

has

and

School of Finance and

also

10.7%.

Building.

was

survey

educational

year

is

Now With

E.

industry

currently selling
around 31 to yield 3.2%, and the
price-earnings ratio approximates

This advertisement is neither
securities.

stock

an¬

W.

before

only to investment

improvement. The credit for

interest
be

more

situation

was

until

to

$1 rate. The price of
stock advanced from

three-year

throughout

erations

of

project

complete

a

been made

also

and rev¬
13%. Rural and commercial

also

Since

that year,

Such

enues

sales

sold

$27,500,000 bonds earlier this year,
and in April the parent company
sold
650,000 shares of common
stock. The
equity ratio is cur¬
rently around 34%, and has re¬
mained within a range of 34-36%
during the past decade. It is re¬
ported that there will be no addi¬

the

much information

sale of Louisiana

will

of

kwh sales being up 17%

the

Gypsy,

Lee

Co., New York, outgo¬

1960 good air
conditioning sales
helped the residential showing—

and there may be some
temporary
loss of income resulting from the

Little

business,

J.

ciation.

never

will
complete
two
additional
plants in 1961 and one of these,

world's first plant capable of fuU

banking
James

Sponsorship

to 8%

During the first ten months of

increasing peak loads and to

build up an adequate reserve (the

too

competitive. The
company expects to maintain an
in

As

it

nounced

in manganese ore.

The Investment Bankers

a

in¬

vestment

of

crude oil and natural gas,

bauxite; second in oil and nat¬
gas,
barite, bentonite, and
sulphur; fourth in salt; and fifth

In 1961

the

Hutton &

of

IBA to Meet

1,

America

ing is being actively promoted in
and Mississippi — both

(Par Value $.60

ural

Dec.

of

comprehensive

However, the most important
factor in the growth of the area

in

nership.

satisfac¬

and

man-hours of work have all made

figures.

and

continued

area,

include

area

a

CHICAGO, 111.—Straus, Blosser &
McDowell,
39
South
La
Salle
Street, members of the New York

the

eight-fold

in terms of current dollars.

payrolls,

C.

farm

output in
worth over $660

now

since

77%

Straus, Blosser to

and

other

Agricultural

million per annum, an increase

Burns,

-

and

livestock

products.

tidelands

a

served

than that of the U. S.

Other hon¬

man

in

population growth in the
period but its economic
progress
has been much faster

guest

has

in

Arkansas

Utilities, Inc.

pro¬

service is

postwar

honor.

ored

transit

much

Ja-

K.

were

area

South

The

85%

Louisiana

reduce the

Transit

Orleans and

The

guests.
Jacob

of

sale

Service will

revenues.

New

600

members

recent

were

portion of gas sales to about 7%

was

attended

the

Gas

the meet¬

over

the

and

system,

Gulf

(it

cities served
include New Orleans, Little Rock,

Pine

;

tion

1960

industries

tory in this respect. Electric heat¬

Middle South

necessarily at any time coin¬ from the system earlier this year
cide with those of the "Chronicle." through subscription rights to its
They are presented as those of the stock, which were offered to MSU
stockholders.
author only.]
The system serves an important
segment of the Deep South, in¬
cluding a population of some four
do

a

The Investment Bankers Associa¬

and

Service,

available.

established

Study Inv.
Banking Business

expanded

were

earnings statements even
importantly. MGM shares

panies'
offer

the

the
even

1959

year

IBA to

record for the number of new and

some

industry,
held

are

The

BY OWEN ELY

al¬

entire

To

of 33; the stock has made
highs in each of the past

new

television

ready committed to releasing the
later ones, it seems to be only a
matter

high

four years.

profit.
its

the low of 7V2 in 1950 to the 1960

PUBLIC UTILITY

field, including film

17

Ex¬

18

The Commercial and Financial Chronicle

(2294)

sufficient

Some Recent Changes in

interest

in

forward

of

about

rule

Forward Exchange Practices

the

exchange

profit margin has long ceased to
exist.
Any
foreign
exchange
would be in a position to

dealer

By Paul Einzig*

the

confirm

fact, well known in
that in our days
most banks are very often will¬
ing to transfer funds for interest
arbitrage for the sake of a profit
of 1/16% 01* even less.
Indeed, I
banking circles,

knowledge of modern post World War II forward ex¬

The dearth of

obsolete pre-war
information induce Dr. Einzig to bring those interested in forward
exchange up to date on the subject. A fuller treatment of this topic
will appear in the author's forthcoming book, '"A Dynamic Theory
of Forward Exchange" to be published in 1961 by Macmillan & Co.,
Ltd.
Here, Dr. Einzig touches on the extent hedging has replaced
change practices and the persistency in perpetuating

speculation; criticizes financial press for a lack of
technicalities of forward exchange;
disproves the

understand from

,

L

interest in the

They do so for the
sake
of
the
prestige
value
of
operating on a large scale, and as
a means of attracting other
busi¬

for arbitrage; com¬
ments on feasibility of unlimited forward exchange support; notes
revolutionary change in development of long forward facilities; and
finds forward exchange markets serve as an alternative to local
one-half per cent minimum discrepancy

about

banks to cover forward transactions by spot transactions in the
first instance is no longer applied
quite as generally as before the

highly gratifying increase of the
active interest of academic econ-

war.

omists in some broader aspects

of

A number of

exchange.

forward

quently.
(7) Average amounts of mdividual commercial forward transactions are now much larger, even
in terms of constant prices,
(8) It is now possible to cover
commercial transactions for very
long periods, in some currencies

-interesting and important articles
have appeared in recent years in

learned societies,
official' institutions
and
banks, and between them
they have thrown much new light
publications

of

universities,

subject.. In particular, the

the

on

question whether or not monetary
should

authorities

engage

up

sys-

exchange
operations for purposes of monetary policy has attracted much detematically

in

forward

discussion.

tailed

Penetrating

dealers

Buying and selling orders
of forward exchange are now
"married" by the banks more fre(6)

.

to four years.
(9) There is an increase in the

relative volume of turnover in
forward v transactions for r very
short periods.

an-

-

■

(10) The importance of time
effects of leads and arbitrage has increased very con-

alyses of the working of Interest

Parities, the

.

reciprocal relationship siderably.
between
speculation,
arbitrage^
(11) It is now possible to deal
hedging and commercial covering, in the market in contracts with
etc., have yielded some ^mry val- optional dates, at \ any rate for
lags,

the

useful

Some

results.

uable

new

terms, such as "intrinsic" premium
or
discount, and "incoming" or
"outgoing" arbitrage, have been

fddeAt0Jh„6 ™CabUlary °f fOT"
exenange.
warn

*

thus

Having

paid

the

to

tribute

served

well-de-

a

post-war

generation of writers on the sub-

ject,

I

over-critical

attention

draw
of

I shall not be

trust

sidered

the

to

a

Yet there

techniques.

been many changes

of them

have

able

importance from a theoretias
well as practical point of

cal

view.

are

Oversight of the developthese

of

ment

practices, or
failure to appreciate their significance
is apt to result in conclusions
unsuitable
for
application
new

to the

present-day situation or for
serving as a basis for official policies

tactics. It is therefore

or

sential
in

economists

for

forward

themselves

es-

interested

exchange
up

to
bring
date in respect

to

factual material

of the

on

margins

Profit

which

(14) There has been a great in-

™»wi. iLL'L.JLL,..,,.
swap transactions.
The

(15)

of overdrafts on

use

current accounts for interest arbitrage has declined,
The importance of these various
list

does

claim

not

to be complete—from the point of
view of their bearing on forward
exchange theory varies widely,

but between them they have altered drastically the picture of
forward exchange practices and
techniques which I tried to present in my pre-war book on the
subject.1
It has been, therefore,
somewhat
find

my

perturbing
quoted

book

for

me

every

to

now

and again as a source of information for factual material which,
was undoubtedly correct

while it

the

30s,

since

has

ceased

to

of

and for the conclusions based on
them.

The
the

-

,

„T

Post-War

following

-

-

.

Changes

list

of

i,

some

.

apply.
jn

more

inquiry I made recently in the
city and in some continental financial centres with
the object
of ascertaining new developments
in
forward
exchange
practices

Outstanding in importance
among such instances is the oft-

since before the

repeated assertion that foreign ex-

(1)

war:

The

pre-war rule about a
profit margin of Vz%
interest arbitrage operations

minimum

for
no

'

longer exists

(2)

The

relative

_

.,

...

change dealers make it a rule to
abstain from interest arbitrage
oPei>ations unless the discrepancy
between forward rates and their
~

Importance of

.

.

„

(3) The relative importance of
speculation by the public

at least V2%
This

rule

recent

has declined.

economists
are now more

willing

to carry open positions overnight
and even for -longer periods. .*

(5)

The proportion of outright

forward

operations in the market
has increased, and the practice of




realities

than

days,

ancient

the

practice

of

(It

is

outside

maintaining

to

the

close

fast courier services for ascertain¬

sterling,

ing exchange rates in other

means

tres

in

that

existed

advance

The

of

rival

account

by buying spot

the hedge by
transaction, or
sterling and sell the pro¬

borrow

ceeds

a

swap

the

of

loan.

The

essential

difference is that he finds it

theoretical

importance of
the change lies in the fact that it

as

either

can

renew

or

of

days.

Gresham's

in

cen¬

dealers

He

usu¬

ally much easier than a pure
has
resulted
in
the
elimination speculator to create a short posi¬
of a frictional influence interfer-. tion in sterling either by means
operation
or
by
ing with the ideal working of In¬ of a forward
terest Parities in normal condi¬ means of borrowing and selling
tions.
It
means
an
increase' in spot sterling,; and that when the
the extent

ments

of international

of

funds

arbitrage,

the

forward
time

which

in

crease

through
means

exchange.

the

static

role

has

in

increased

also

of

same

levels

various

he

is

an

branch or subsidiary

Britain, his

of

centres

which

in

inventories of goods
apt to become reduced

possess

may

importance.
has been made towards

Progress

matures

incomparably better position
than
a
pure
speculator to pay
sterling for the dollars he had
bought without first having
to
buy sterling. Apart from his bor¬
rowing facilities on his assets in

played by
balancing

exchange
in
discrepancies between
rates

the

At

in

in¬

an

effects

dynamic

contract

forward

move¬

interest

are

during the period of the forward

they
with

be realized
object of

from their Interest Parities is now

capable of provoking transfers of

of

office

head

bargain with its
than

blood

and

This

borrowers.)

arbitrage
head

the

speculator.

pure

choice

alternatives

means

market.

when

that

a

the

with

same

they have to use for
funds
borrowed from
office they are unable

flesh

own

the

with

harder

a

obtainable

complaint

their

that

drives

contract

between

meeting the sterling liability aris¬
ing from the forward contract and
taking up the dollars bought.

higher

a.

money

perennial

a

dealers

forward

more

even

them.

During periods when there is no
one-sided buying or selling pres¬
that would exhaust the liquid
resources of foreign exchange de¬
partments, even a barely percepti¬
ble deviation of forward margins

domestic

is

latter

the

them

charge

to

the

the

of transacting all

or

between

firm

hedging
against a depreciation of its
branch factory in Britain is con¬
fronted on
the maturity
of the

foreign-exchange business at the
Royal Exchange on Tuesdays and
Thursdays that existed in Goschen's

difference

American

An

contract,

funds

rate of interest than is

in

to

establishing
the
international
unity of all free money markets.

additional

likely

sential

That

relevance

more

operate unless there is a rela¬

operations

since

pre-war

has -r. increased

The

days.

tehms

In

in

the

the

funds.

What

market

owing to
the multiplicity of Interest Pari¬
ties, the paradoxical phenomenon

centres

the

at

quite

come

time

same

has

be¬

inquiries

my

foreign exchange
year
I was told in

last

than

banks

quarter that, since

one

have

some

limit

be¬

yond which they become increas¬

reluctant to increase their
exchange commitments,

ingly

forward

during*-periods of pressure they
to reserve their facilities
'for customers engaged in hedging

'prefer

frequent occurrence.3

a

the

of

course

most

is. more,

can

Zurich

more

tively wide discrepancy. In fact, o£ witnessing inward and outward
the
minimum
discrepancy
for' interest
arbitrage
between
two
such

or

deliberately

sure

exchange departments are pre¬
pared nowadays to engage in ar¬

,the

ensure a

as

profit of

matic, apd elaborate theoretical
.conclusions have been based on it.
It is unfortunate that the financial

press does not nowadays take a
1 T.
T,
*
,1
(London:

MacmiiiL

,

&

the

profit,

even

or

war,

long as
they can use their own allotted
capital, if thev have to borrow
additional capital from their head
office they can operate only when
minimum discrepancies are wider
any

so

Postwar literature has failed

to it.
to

appreciate the full significance

of the

change, even though it calls
very thorough
analysis of

for

a

the

basic

characteristics

of

hedg¬

Most writers apply the terms

ing.

hedging and commercial covering

loosely and indiscriminately,

very

before

avoid
for

the

generalising in this respect,
head offices

some

are more

in¬

clined than others to support their

dealers

in

effort

an

achieve

to

a

large turnover in the market. The

policy of head offices follows no
uniform
rule, and the liquidity
position of foreign exchange de¬
partments varies widely and is
liable to change from one moment
to another: It is therefore impos¬
sible to establish
the

rule to take

anv

place of the pre-war rule of

the

Vz% minimum profit margin.

At

anv

each

at

and

different rules,

of them

one

various

moment

given

follow

banks

changes its rule

matters further,

complicate

much

has

against

legitimate

some

•

interest

rather than deal with pure specu¬

and-butter"
,

hedg¬

provide the "breadof foreign exchange

usually

ing

concerned in

Those

lators.

with their regular
covering transactions,

departments
commercial

more

in

Yet
hedging
with

common

maturity,
not.

he

.American

An

Britain,
is

having

■

due

to

to

exporter

sold

sterling

the

in

receive

three

a1

depreciation

of

his

in

asset

terms of dollars by selling sterling

factory

is not
on

This may

of

out

likely to sell his

maturity

the routine

to selling Gilt-edged

their

reducing

that

means

at

call

a

loss

the

in

order

to,

contract.

forward

margins

at

occur

on

very

casions. if the cost of

a

hedging

rare

be

is

found

tive, but it is

to

very

as

oc¬

prolonged

prohibi¬

far from being

it is in the

case

of

commercial covering3

This

loans.

profit

or

_

Co.I 1937).ange

banks

erate
some

and

attitude

of
to

for

sake
ness.

a

the

figure
clerical

foreign

of

London

of

clearing:

commission

to

pay

excess

op¬

between

attracting

the

recalls

London

their

credits
to

vary

negative quantity.

a

practice

paid

to

quite substantial percentage

2 This

cut

apt

are

prepared to

are

on

pre-war

banks

to

acceptance

at
which it hardly
work inv-lved, and

banks
bill

deposi* rates in
all for' the

rates,

other

kinds

of

busi¬
_

.<-

than
appear

the

on

is

there

only

scene

abnormal

when
This

pressure.

attitude is not confined to Switzer¬

land, but, in view of the reputa¬
tion of Zurich

the main center

as

speculative

for

activity, it is in¬
teresting to register the fact that:
even
there hedging
has largely
replaced speculation.
market,

In the London

each

on

when

sterling came un¬
active pressure in the fifties,

operations

feature

West

where

district

many

factories

branch

American
situated

"Great

the

of

Road"—the

are

prominent
of the forward exchange
became

—

a

time, simply delivers on market. During the last 10 years
maturity the sterling out of the there, has been a remarkable in¬
in
American
and
other
proceeds of his exports. But an crease
American with a branch factory foreign investment in Britain, as
in Britain, having hedged against a result of the provision made in

through their foreign ex¬
change departments, authorizing
the latter to engage in inward ar¬
bitrage at a moderate loss, ifor
the sake of tiding over a period

alternative

that
oblige

to

months'

time

an

natural

prefer

regular
customers
rather
speculators,
who
usually

der

that, while a covering
is self-liquidating
on
a hedging
operation is

carry

as

their

ference

is

only

should

banks

occasion

operation

is

it

speculation than with com¬
mercial covering.
The basic dif¬

head offices* borrow from time to

stringency,

that

so

pure

forward,

frequent intervals.
To

if they were synonymous.4
far from that being so,

must

We

war.

as
so

than

which

by
theoretical
something
axio-

_

much smaller profit

reference

any

3 This

larity

new

situation

gold

bears

some

simi¬

to the form of gold standard ad¬
in the late twenties, under which

trage,

clearing would replace gold arbi¬
so
that the slightest deviations

frcm

mint

of

parities would

entail

transfers

vfd.

Intervention

on

the

Forward

Ex¬

change

Market, International Monetary
Fund Staff Papers, March 1959, p. 76).

And

Mr.

reference
ward

A. E.
to

Jasay

covered

uses

the term with
funds
"For¬

bank

Exchange: The Case Frr Interven¬
er " Lloyds Bank Review, October 1958,
p.

39).

enable

-

owners

overseas

approved industrial investment
in this country to repatriate at

proceeds of their
assets. This trend,
for an increase , of

the

time

any

realized capital

makes

which

potential extent of hedging,
is likely to continue, not only in
this country but throughout the

the

free

world,

of

quence

a natural conse¬
prevailing liberal

as

the

trend in trade and

finance. More¬

later it will be-?
come possible to hedge by means
of forward operations also against
foreign holdings of British secu5

Covered

bank

owners

funds

in

balances

account

current

the

or

sooner

are

forward

in

a

position

contract

on

form of
auto¬

the

not

are

to

carry

maturity

having
to
buy the currency
cerned.
Covered bank, funds in any
out

form

are

automatically

their

but

self-liquidating,

matically

4 Mr. S. C. Tsiang
goes
so
far as to
apply the term 'hedving" to include com¬
mercial
covering
(The Theory of For¬
ward Exchange
and Effects of Govern¬
ment

to

1950

of

over,

vocated

p.a. on the operations.
has been presented in

writings

a

before

contains

Evidence

_

.

;

pure

(4) Banks

_

Misconception About the Profit
Spread .
,
.

creasecf' °Perati°nS has greatly ln" ciently large to
...

the Treasurer of their head office

for

without

dollars") for

important; post - war
changes is based on an exhaustive

Lists

present-day

interest

than

One of my main objects
writing this article is to disclaim responsibility for such facts

.

,.

no

ancient practice

long as their foreign exchange de¬
partment has funds available for
that purpose. If they have to ask

or

bitrage for

in

they base their arguments.

is forgotten, the better.
bears

between hedging
speculation, but also the es¬

and

arbi-

on

have declined.

rjQCjs

changes—the

of consider-

some

ancy

rule

Speculation

vs.

important to bear in mind

similarities

the

rule

prewar

minimum discrep¬

forward

can

profit

Hedging
It is

com¬

more

:

since the war,

and

:'

dates.

about the

only operate without
at a nominal profit so

a

Thursday, December 8, 1960

.

charged by the head office to the
The ^extent to
which hedging
foreign exchange department are has replaced pure speculation as
trage in space have declined very much stiffer nowadays, because,
the potentially predominant influ¬
considerably
" banks find it much easier to em¬
ence in the foreign exchange mar¬
(13) Profit margins on transac- ploy their money at home more ket dees not appear to have been
tions with customers _ wittl the
profitably than they did during realized sufficiently, judging by
'
* the fact that neither the
exception of1 contracts with op- the lean thirties.
Report of
This means that while foreign
tional dates or for very long pethe Radcliffe Committee nor the
(12)

con¬

literature.. It is
based to a very large extent on
obsolete
pre - war
information
about forward exchange practices
and

standard

if I try to
major drfect

post-war

well
shaKe - their
disapproval of this be¬
havior of the post-war generation,
but very often even they have to
act likewise, in order to maintain
the standing of their bank as a big
operator in the market.
Of
course,- foreign
exchange
may

in

heads

resumption of free foreign
exchange dealings in London and
other
European markets ".during
the fifties has been followed by a

The

The few surviving pre-war

ness.2

and the

sooner

pletely that obsolete

profit.

dealers

markets.

money

dependent banking sources that
on
a
great many occasion^ some
banks - operate
entirely
without
any

rule

pre-war

number of in¬

a

The

;i

minimum

^2%

.

Growth of Arbitrage and Hedging

techni¬

the

to
make economists realize that the
calities

.

^out

with¬
con¬

other
self-liquidating,

of covered com¬
mercial or financial credit transactions.
Covered security holdings with maturity
dates are self-liquidating if the forward
contract
is for the whole period to the
and

so

maturity
comes

are

all

date.

under the

tyoes

Otherwise

the

operation

definition of hedging.

-Volume *192

Number 6010 7.

The Commercial and Financial Chronicle

.

(2295)

19

rihes

.whose-.proceeds can,nt the would run grave risks in doing the forward contracts mature,.the ward -commitments:-if they sold a ;
disadvantage- since ' on manv
writing, be sold only in so- now that they have'to* deal' necessary defensive. measures are forward dollars to an amount in
occasions - thev' would
have
to
v.Vlargely with hedgers who may be apt to be unduly delayed, on the excess of their reserves. *
•
% cover
during the late afternoon
in a position to deliver on matu- optimistic, assumption
that
the
The increased willingness of the when
Increases Foreign Exchange
everybody else is expected
rity the sterling they sold and to official forward sales-1 of ' dollars banks themselves to
carry open to have to cover.
Dynamism
Nowadays the
retain the dollars to be received are
mere -bookkeeping
entries positions is another postwar rule is
interpreted much more
The grand Total? of
actual and in" exchange,.
Considerationof with nothing behind them.' change
making for • an increased liberally - than before the war.
potential
hedging Tends to
in--space prevents me from going into
It is arguable that if the cost dynamism
of forward exchange. Dealers may defer the covering
'crease
also through the
growing the whole controversy, but I feel 0f
hedging is kept artificially low The myth that "respectable" till the next day, or till after the
practice of
commercial hedging" this aspect-alone should call for
the hedges are more likely to be banks, at any rate in the United weekend, when it can be effected
—to cover an indirect risk
arising some rethinking on the part of renewed
on
maturity.
But -in Kingdom, always cover all their more
conveniently.
Moreover,
Ar°1T1A a 9om™erclal?transaction. those who have been advocating practice fears of exchange restric- positions every day before the many banks apply the rule only
An American
importer' of British unlimited support. In the absence tions or various other considera- market closes dies
hard, but the in the sense of

t

.

time

of

the form of
security sterling,

'

..,

.

cars

payable

exchange
sterling
nope

sterling leaves the

in

risk

uncovered

of

when

is under a cloud, in the
benefiting by a-devalua-

at

turn.

But once he has
paid his
sterling debt,-he is exposed to the

ris
te

.a, a

o-*

British

guard

as

of

result

a

sterling.

.himself

he

of

To

sells

Even

forward

tions

avoiding obvious
they would run by

fact that since 1951 British banks

major

to take up the dollars they had
bought forward, regardless of the
forward rate.
Allowing for this,
together with the possibility of

may

liable to induce hedgers

have been officially authorized to
carry
uncovered balances up to
a certain fixed maximum should

being long in a currency threatened with: devaluation or short
in a currency threatened with re¬

are

risks

bringing valuation.
reality, the
They are often prepared to run
sary defensive measures immedi- 0f decisions of
Sterling
Area text book rule about closing all the calculated risk of an apprecia¬
ately.
If,
on
the
other hand, countries to secede, the British positions every day has never tion or a
depreciation of the spot
official support
of the forward authorities would run the risk of been applied strictly.. Its rigid exchange
concerned, provided that
exchange conceals the loss until being unable to meet their for- application would olace banks at
Continued on page 20
I

a

safe-

sterling

forward to the value of his unsold
stock.

of

support

exchange, and the authorities

feel

dollar Prices

in

cars

devaluation

official

sterling hedging, through its effeet on arbitrage, entails an immediate loss of gold or foreign

impelled

to

the

take

neces-

go

jn the exchange control and

gapS

some

its

about

way

towards

demise.

In

though this operation

arises from

commercial transac¬

a

tion, it is

not covering but hedg¬
ing, because it is not self-liquidat¬

ing

any

than is hedging by

more

an

American

in

Britain.

of fixed assets

owner

As

the

business

com¬

munity tends to become increas¬
ingly forward exchange conscious,
such operations are
likely to in¬
in

crease

currency
cloud.

volume

whenever

to

appears

be

a

under

a

PICTURE

This increase in the importance
of

hedging

has

ated

further
the, dynamism of

ward

exchange system.

OF

accentu¬

TELEPHONE

the, for¬

Even pure

speculation is liable to produce
highly disturbing effects, through

CALLS

its

HANDLED

influence

transfer

of

interest

the international

on

funds,

rates

gold
the

and

BEING

A

reserves,

volume

of

REMARKABLE

credit in both losing and

receiving
the change from
speculation to hedging has

countries.
pure

made

But

the

currency

task
even

,

defending

H

NEW

WAY

a

rtmlf-'

difficult.'7

more

Aftqf: aU,^as. Spraos rightly ob-~
^served, "speculative forward deals

,

are

bookkeeping

mere

destined

to

the

cause

entries

be. rubbed'off"6

speculator

be¬

does

not

the currency he had sold,
that he has to acquire it on

possess
so

maturity
deliver

in

it.

to

order
is

It

be

able

to

technically
the hedger is in the same position.
But, as I pointed out above, it is
incomparably easier for him to
true,

meet his forward contract without

having first :to' buy the sterling,
especially if he is hedging against
i 1 y
realizable
inventories.
•'.Speculators may or may not have
e a s

assets
but

against

those

which

to

borrow,

in

engaged

hedging

necessarily possess the assets they
want to secure against deprecia¬
tion.

Nor

tions

Bell

lending

to

hedgers

extent

as

against

same

System's

ap¬

Electronic-Central Office

new

unofficial restric¬

or

against

tov the

authorities

the

can

official

ply

(now being tested) forecasts

a

startling

•lending to speculators, seeing that
the former

•their

'proceeds. ; '

Today

repatriate
' ; • /-

v"

•

.

in

hundred

to envisage

a

-

mil¬

of

lions of pounds, but it is

-

The

-

iri ./which

thousands

in

in

of

^

It. is

millions..

.

.

reckoned

be

to

"The

when

that

is

difference

in

*

they
_

%

a

•

'

possess.,
;

•

•

'

.

•

'

..
.

*

;.^

-

-

„

,

sterling

spot

delivering

by

.

.*

/

.

'•

'

H

'

Supporting Forward Exchange
The

realization

of

this

differ-

"

.

speculation

and
•7

hedging, and of the latter's grow¬

ing imnortance, is liable to influ.

the official

ence

■<

:

'

for, unlimited, support
sterling against large- :
-scale" attacks.-^Even-if they could /.
proposals

to

forward

amount equal y./
to, or in excess of, their gold re—-,
-serves so long as they were deal-.,
Tng mainly with* speculators, they V
6 J.

-and

1959,

Spraos,
"Speculation,. Arbitrage
Sterling,"' Economic Journal, March
p. 14.
•
,




difference between the
Central

Office

switching systems:

"Suppose,"' he

-

v

.

and

-

the trial stage.
in Morris are

Some of our customers
helping us test it now,
and more are being added every week.
We're watching their reactions very
carefully, because we want to know
how to improve the switching system,
and what new services
people would

Elec¬

previous

like

-

"that two stu¬
dents are trying to find the square root
of 841. One is doing it the hard way,
figuring with paper and pencil. The
other just reaches for an engineering
handbook, flips to the right place and
looks up the answer, 29, in the tables.
says,

For example, you may be able to dial
"The Electronic Central Office works
three-way phone conversation right,
•in town
/; om have
basically the same way. When you dial
your calls auto-matically transferred to a friend's v7 a number, it will decide how to connect you by 'looking in the back of the
house where you're spending the evebook'.—a huge permanent memory in
•ning.*!.'. of ask the Office to keep after
t..1,

t.

«

.

•'

.■••'■.r

busy number and make the

tion

as

soon

as

it's free.

«■ it

us

■

connec*.-

I which
every

we

have stored the

answers

to

situation that can possibly arise."

to

have.

This

early demonstration of elec¬
switching is the achievement of
many years of Bell Telephone research
in many fields of science. It depends,

tronic

for instance, on

the Transistor,

Laboratories invention, for its

a

Bell

econ¬

omy and reliability. And it shows the
important progress we can make with
- reasonable earnings under America's

,

.

'Product of Continuing Research
The Electronic Central Office is still in

engineer at Bell Telephone Labora¬
uses this
comparison to drama¬

tronic

test is
very significant, because
future Electronic Central Office
will let your telephone do pretty nearly
anything you want it to-.. y

a
-

.

a

..

'

afford to engage an

An

tize the

the

,

attitude towards

a

new

tories

~This

'

-

.

between

ence

•.

*'

•

few of the many
switching system
possible.
just

"It looks in the back of the book"

equipment which we recently began
testing in Morris, Illinois.; The "pips"
of light you see on the screen repre¬
sent the
system's thought processes asit puts calls
through, while checking ,
itself constantly for errors.
,'7

the

position to meet a much
.larger proportion of the amounts
due

could make

A screen like this is monitoring ex¬
perimental Electronic Central Office

forward contracts mature hedgers
are

are

services this

•

is "ho limit
speculative selling of sterling,
there

theory

••

you an

..

will

influence

true

telephone services

These

oscilloscope screen above gives
idea of how telephone calls will <
some
day he handled—electronically—
by a remarkable new system, y -/
•

neces¬

situation in the

mot- too -distant- future
this

new

pressure

reckoned

sary

variety of useful

the

v.

potential weight of
on sterling may

the

hedging
be

entitled to sell out

are

assets' and

,

,,,

free enterpriser system:
nri i

TCI TDUflNr

CYCTrM

BtLL ItLtPHONt 5T5ILM
„

.

-

£0

The Commercial and Financial Chronicle

(22S6)'

crepancies.
to

in

center in

Forward Exchange Practices
instance, when in 1957 a revaluation
of
tse
D. Mark
was

only because of the all-round in-

ob-* crease in prices but also owing to
rule against the structural -change in British

the text book

served

larger than before the war, not

strictly

banks

anticipated,

the

general

Or to Devalue the Dollar

"Telex,", resulted inone large interna-

of

the creation of

leaving
a
short position^ open foreign trade.
Before the war
overnight, but did not'hesitate to textiles were the most import
leave a long position open, even exports, and their substantial total

fjcult

to

deal

By Paul Einzig

banks

with

across

We must learn that confidence in

Atlantic than with banks just \

and future prospects

another

across

the

Yet

friction

tending to interfere with
of the system
a
matter of the past, but

street

this lesson in the

devaluation.

ideal working

the
jg

dence

s0 jg yet another source of profit
^qj. foreign exchange departments

profit

margins

in the was composed of a large number customers have contracted bevicinity of its upper support point of small individual items. Today cause of keen competition and beand was liable to depreciate to engineering - and
other
capital cause business firms have become
its lower support point, because goods have become the most im- much
more 1 forward
exchange
they could safely rule out a de-' portant. exports,
and individual minded
They know more about
valuation of the D. Mark.
contracts are apt to run into six
.It than before the war and ask

less

,

t

r

*

Rules Apply

Text Book

■

of

the

of reviewing

the arguments for and against

devalue, he avers, would inspire less confi¬

to

case

1933-34

in

and customer now very often approximates more closely to the
market in the performance of its minimum amount of transactions
task
of meeting temporary sur- customary between banks in the
pluses or deficiencies in supply market.
Unduly rigid application of the

he

when,

says,

there

were

for such a move. Moreover, he says to devalue

expediency would pave the way for successively end¬
inadequate gold reserves. Taking the long view, Dr.

defend the dollar, which

he
"real deter¬
mination," even if it means reimposing certain exchange restrictions.
What is really at stake, Dr. Einzig says, may be the need to lose
Einzig hopes that

"

can

of

some

we

will decide to

be done if the new Administration exercises

sake of preserving political

economic freedom for the

our

freedom

several quotations before giv-

the bank that
quotes the best rate. It is largely LONDON, England.
ing their

depends on its present

currency

mi

and transactions figures.. The size for
even seven between banker
Df

Anniv

Willie

l

crises

says

■

A*rv.
When

was

a

rather than on its past record. Dr. Einzig offers

course
us

reasons

for the sake of
;

the spot rate was

though

For

than

compelling

with

deals

on

Thursday, December 8, 1960

Choice Is to Defend

■

McgWnSSfL

Increased Volume

they feel they can rely upon the
Average amounts of commercial
maintenance of its support points, forward transaction are now much
For

adoption

with

.

possible
overseas

matter of minutes, and"

a

together

this,

Continued from page 19

Today it is
through to an

get

.

.

until

the

danger is

over.

order to

inflation, there would be no difficulty in selling all that is produced. Unemployment
would
disappear, or at any rate it would
become greatly reduced. The baland demand.
If the banks were
There has been a revolutionary them is forward contracts with billion. For some time past sug- ance of payments would improve,
forbidden altogether from having change in respect of forward fa- opti0nal delivery dates. This type
gestions that the figure of $18 and at its reduced gold value, the
open
positions the rates would cilities
for very long periods. of transaction existed before the billion had some special signifi- dollar would
inspire
more
have
to
fluctuate
more
widely Before the war the maximum pe- war^
but it has
become
much Cance appeared in the Press on confidence.
the

text book rule would handicap

Speculators

banking

meet"the liver^"commercialExchange'

to

risk

—

British and

difficult continental
newspapers
made a
such business great song and dance about,the
that banks have developed new decline
of
the
American
gol 1
and more profitable lines. One of st.0ck
below
the
figure, of $18
it

because

make

is

now

profit

a

more

on

°?e

moreuncertainty about
poputlar °wi"g

both sides of the Atlantic Nobody
ever
explained
adequately

Beyond doubtlooked upon with
a dollar devalua,
would be

,
tion

being able has

war

oSfiSheC'otherahSaSrd unduh^lax
hand, unduly lax

of routine was six montns, though
ot
tnougn

t0 telj,Ve£ g°,°uds °n
^te*n"'how that arbitrary should have relief bynthpr rnntinpnfq On thic
fi§ure was
many people in Europe
scribed
by the contract.
While chosen and why it

application of the text book rule
is liable to add matenally to buy-

it was possible to negotiate contracts in some currencies up to

the

war

transactions

were

init

12

On

the

other

sellinv

or

nressure

another

Yet

^me Axtpnt^aJ
extent as

the
tne

befPre
betore

same

rule

book

text

war
war

roltile wis ^"months*

forward

Todav

months

ex-

chanTe up' to^oX^n'be.
-

'is matter 01 routine anci it is
matter""of^routine"an^ifis"
is

possipossi

nnH

before

anS specif^

forward

such

concluded

onlv

magic virtues. Never-

+i,„Wc.

.tc

tn

'ransactio"s ™ere concluded only theless, owing to its frequent
nowadays » ^ble^S Z&S& £**225 many people
it is possible to undo the minds of
great

to contracts in dollars and a few
transaction, other currencies for periods up to
The broader significant of this four years.
Banks are now able
practice lies in the fact that if a to undo such long commitments
bank
covers
a
sale
of forward in the market for periods up to
its customer by a pur-

chase
ket

of

spot dollars in the maris the acquisition
covered dollar balance.
It
result

the

of

a

then

may

while

be

commitment

this

let

to

bank's

the

worth

as

'

on

the

1.

» A™

*m ln, ,e market, at any rate s0 that when the it, there was magnitude, and there is a growing
gold reserve fpplinp that qnrh rereqqinn miVht
standard
dates—for instance
did decline below
+

for

a

react on business conditions in the
— .Free World.People who
have
been
living

operation,

spot

be followed by a swap

dollars to

AtlanUc

.1

business recession of considerable

a

.

a

the

:..

other side, there are much exag-

covers

by

of

„.i

lien exchangewitti a^ustomer^it works^colrtractoS et™t'o nego- f°r,
mfunth °r %?, last bound to be a certain amount of
hi the iMirket in th? first Safe'wit*^ thlir
banks forwlrd f?r'mght °£ a three m°nthS 'P6"
carried headlines envisaging the
instance

nn

aide

fr.mi.iit

under

the

Improved forward exchange fa- possibility of a dollar devaluation shadow of such fears would of
5?ht*es hav% stim"lated the use of
There is a revival of the crop course welcome a relief from it
J?™*J?
of unsolicited British advices to thrqugh a devaluation.^;
an alternative to the local money the United States in favor of rais-

'

twftAiyears,. even

markets. Progress in that direc-,jng the dollar price of gold. It has

transactions are
of negotiation.

^mn nas oeen greatly iacintaxea Dy beerf:' argued at. length that such
in spite of all this opinion oh
me increased practice ot dealing a move would save a lot of trouble this side, though admittedly more
m aeposits m terms^ot horeign an round, as it would obviate a favorable to - dollar devaluation
£uyaenCi!fx' r®
n fan fs ^?w dollar crisis, or a series of dollar than it had been a few months

possible

It is

envisage
of

though
such
always a matter

this

necessary to
improvement

and

further

a

market,

new

^

,

substantial amounts ot dollar criSes, which, it is predicted, ago, it is very far from being
would occur if devaluation should unanimous. It is realized that ah
be resisted. Those who hold such increase in the dollar price of
views maintain that, even if the gold which would be followed by
united States were able to resist increases in the price of gold in
pressure for devaluation, the cost terms of sterling and other curof resistance would be so high rencies, would mean the end of
that the game would not be worth the stability of the price level

in the

both

The Other Side pf tile Cpfn ...;

.

of increased turnover and
of providing facilities for even
longer periods and in more currencies.. Before many years it
will be possible to transact long
forward exchange in the market
other words, the bank may engage as a matter of routine.
It goes
in
passive interest arbitrage in without saying that such a de-

deposits o^ea - mostly Dy con?nf i noiders—tney nave come.
JS,
known under tne name of
J^uro-aoiiars — and tney orten
s^aP int0 sterling it tnis is a
c^eaPer mor "?0I!e convenient waY
or covermg tneir requirements 01

increase

Iorei&n currency /deposits tney
were ®nly aD.e to.-£o UP t0 tne
amount ot tneir own toreign bal-

instead

stand

of

undoing it with
the aid of a swap transaction, on
occasTons when the profit margin
on
interest arbitrage is too small
for
postwar conditions to make
it
worth
while
to
operate.
In

its

worth

be

while

interest

active

.

it

would

to

engage

when

circumstances

not

in

arbitrage.

,,

-

..

.

.

Although the large majority of
forward

transactions

still

are

covered by means

of a spot transaction, the proportion of exceptions has greatly increased since
the
war.
During the period of
exchanee

restrictions

other

and

free

York

New

markets

into

got

sense

velopment

operations
this
the

To

removal, of

offers
the

from
rom
com

any

the

for

reason

aproaa
abroad

In

war.
r.

that

rates,

under

the

stable

spot

the

banks

carry

were

wait

them

on

forward

to

spot
more

a

so

as

sible

fluctuating

now more willing
positions than they

a

offered

is

acceptable terms
market

cover

market.

instead

They

in
in

in

of

immediately

willing to

are

await

the
tne

the

rushm

now
a

to

the
also

forward

opposite
opposite

sense
sense

customer outside the market,
to

actions
Virct
first

of

system

and

transaction

transaction
transaction

by

exists

beforecounterpart they their
the war for can

till

forward

ing

to

Moreover, because

are

omen

practice,

longer

postwar
rates

main

widely than

more

forward rates.

before
Deiore

liable

are

no

"marry"
instead

trancaMinn

transaction

in

the

the

of
qo

as

market.




win

transactions.
It
easy
imagine the increase
the potential disturbing effect
forward exchange if it can
commercial

f°r hedging,

used

is
in

The

arbitrage, and

development

of

for-

long

ward facilities has greatly in-r
creased the importance of time
arbitrage—-the buying and selling
.

of

long against short forward

change.
space

ex-

When it is combined with

arbitrage

to take advan-

—

tbpV

to

had

for

keen

.

fo

ei2

"n
,

Todav

banks

much

a

i

,

obtained

for

thev

This

post

thp >ea<snn<?

ran

9ralP

ic

nnp

,

.

doubt

will

it

be

verv

ueyono aouot - it will oe very

tempting for the new Administration „to take the line of least
resistance. A dollar devaluation,

anv

•

Bevond
x

incrpa^p

thp

.

from

largpr

,

^

The Line of Least Resistance

rur-

nlus

u^ em

l*ni !

of
be

speculation for periods of years.

the indispensable mini-

ances, less

-

especially if it is not accompanied
by an all-round devaluation of
other'currencies, or at any rate
n°t to the same extent as that of

experienced since 1957. Creeping

inflation would resume its course
with all its evil consequences.
From

the

international

point of view of the
situation

monetary

uevaiuauun

uuiicu

wuuiu,

ujl

of dollar devaluation fears, just as suicide disposes
of fears of death. Foreign holders
of dollars would suffer a depreciation of their holdings in terms
course, dispose

of gold and in terms of currencies,
*n the arm", which would revive which would not be devalued or
.rency
deoosits provides a-much business activity and would earn at any rate which would not be
more 'convenient' arid
much
popularity-for the new regime, devalued to the same extent as
PFeaDpr alternative
Expansion could be resumed and the dollar. But confidence in a
'
; j '
under the influence of creeping currency depends on its present
considerations of space make-it
position and ' future
prospects
—
rather than on its past record.
turnover

The

exchange'

short

in

the dollar, would be just the "shot

forward

of foreign

use

cur-

.,

"

many

the

prewar

much

forward

and

farilitipc

Inner

expected, tne long tacinties will
not remain confined to strictly

£unqs. until tne popularization ot ^be candle.

and selling
than
cnan

case

rates

snot

fluctuate

to

nowadays

outright buying

more

after

even

restrictions,

receives

London

extent

some

continued

habit

subject

currencies

in

restrictions.

to

thp

pvryppfpd

the hab:t of transacting much out-

right forward business, owing to
the difficulty of transacting swap

greatly

will

the dynamism
of forward exchange, especially if, as is to be

two

trans-

covering
ennn

soon

co

as

the
pos-

aiscounis
discounts

ror
for

various
various

maturities

centers.-it. leads., to;
simultaneous international transin -

My afm has been merely to draw

attention

different

fers

of

in

funds

Before the

war

both

most dealers were"

extent

im-

and

Fuiiaiic®
P°f£an£l? +1"

^
from the point;of view of

directions.

too busy with simpler operations
to engage in such involved opera-

the

to

of the pStWar lhanges
Ui+!;'lt; pqsiwar cnanges,

somePo?th<LeP ch^^^

soine 01 ines,e caange^xo.esnaaow
™ important changes ,n

tions, but

e

a

tne system, .aamng .inierna" 'confidence

tional political5 troubles, it seems

highly probable that the next few
wnP.witnp^ a progress
nrn^rp^
vears
will
witness
x

^liberalization of trade

a

the

removal, of

bari«p

Admittedly, some of the changes

-

now they have become
matter of daily routine.

This

to the

iargely due
narrowing of profit margins

the

0n

have

change

was

simpler

arbitrage and

on

forms

of

space

commercial busi-

with customers.

The chances

0f making profits on

discrepancies

aess

between

rates

centers

quoted

have

in

virtually

communications since the war.
prewar were considerable disdays liable to

crepancies

develop

owing to delays in getting through
long-distance telephone calls.

^ykichever bank
cleverenough

to

making

a

to

reduce

the

'

.

profit

a

good
on

f.%anpp
chance
cb

h
such

dl3-

All

tvis

will

tend

increase

the

GXcVan2p

for

to

forward

dy-

*

inspired

,

mark in recent years.

Even s0the dollar is deso, if the do
valued in c°ld blood in the long

is ..likely to inspire less

confidence than it inspired in the
past The

devaluation^

1934 was

forced on the Roosevelt Adminis-tration by the sweeping banking

nr

.

we

Prej5SU^tJ^Ctaken
^
JVa™"
tended

to

as

a

that

ma'c

whole

Lve

the

undoubt-

increase

the

dy-

KtSS-^mteTiOv

studying the broader aspects of
forward exchange should do so
with, the full knowledge of the

same de&e?
dencf a« it had been until a few

a^0, ' •
'
It is true a devaluation would

m0

.

namjsm 0f forward exchange and facts of the postwar situation.
IV'

write

rj.1.F irliriiaa _,*Dr- Einzis'» column appears in the
of further considerable increase Thursday
of the Chromci^ This

and would prepare the way for
an expansion of foreign trade. It-

was lucky or
7 For more detailed treatment I must
put
its Call refer the reader to my forthcoirinp book

through first stood
of

tended

>

ex-

pvnan-

•

ffnnr1
crisis and the world-wide eco¬
have. ten^e,d to rfduc®
dy"'good or ovil.
evil
nomic depression. If, "in the compamism of forward exchange. For
problems
had to face in
instance, should the decline in the .gH
absence of such compellingPractlce of covering f o r w a r daSer wafe L" we':irt£luenc6s the dollar were to be
transactions in the spot market on a much larg.er scslie and we devalued deliberately as a matter
c0+ntln"e * ^ould rehe.ve the spot ^f^^blems IUs alTthe more of exPediency, it might never be

Various ^sureTesul ingTrom
disap-

peared, owing to the improvement

?

.

remaining

rp<;triptinn<; and thp

rY,ovlr

A Dynamic Theory of Forward Exzhange,
v/hich

be

wJ„

Macmillan

&

publ3shed
Co., Ltd.

in

196r

by

up

international

reserves

ncmic Journal, under the same title, and'WOUld also enable the Govemis reprinted with the permission of the mentS in the United States and
author

and

the Journal.

The

latter

puhlished quarterly by the Royal
nomic Society, London, England.'

is
'
Eco-

nfbPr

rrmntripc

tn

nrnreed

With

°,ineT COUntrieS tO proceea Wi ll
domestic inflation. But. it WOU1U

Volume

the

mean

hope
and

of

lead

ever

tions.

The

wages

would

many

to*

price

reduc¬

for

would

higher

rise.

the

years

they
today.

are

any »

progress

become accentuated

reserves

inadequate

as

threatening to become

Resistance to devaluation would
be
undoubtedly a difficult, and

painful

process.

Taking

long

a

view,

however, successful resist¬
would carry its own reward.
And there can be no doubt
that

ance

real

determination

dollar

to

defend

the part of the

on

ministration,.* coupled
cooperation

the

the

Free

any

con¬

the dollar.

,

that

great
the

be

the second

deal

free

a

establish

wider

a

economic

asso¬

ciation, based on free trade and
economic co-operation among in¬

Chase Manhattan Bank's latest study

dependent

shows

tion. reports.

going

half

to

of

Europe

Free

European

capital

our

is

outflow

destined

Trade

countries.

*■'

H

lation
that

;

of

of

nations'

investors

plac¬
ing half of their European capital
expenditures
this
year
in
the
of

countries

Trade

the

European

Association,

issue

of

its

Report on
issued recently.

vey,

are

Free

the
Chase
in the cur¬

of

power

fourth

the

of

U.

and services.

about

.

Total

EFTA

half
a

purchasing
countries

is

S.

of

output

goods

Britain accounts for

two-thirds

of

EFTA's pur¬

United

80%

of

in

billion. The

Kingdom.

U.

S.

area

is

con- *

Britain—nearly $2.5
survey

there i^,

says

in fact, more U. S. investment in
Britain than in the entire sixnation
it

expand

close

EFTA

with

countries

include

the

highest
in Europe.
On

standards

living
a

pur¬

chasing power basis, Sweden has
the highest per capita production
($1,512).

But

Britain

Switzerland

($1,486),
Denmark

trade with the

finding

that

does

trade

S.

not

the

seven

conflict

agreement

R.,

NEWS

ON

TEXACO

trade
war

for

and

than

to¬

finance;

had

we

the

stake

progress

to

with

of

SALEM,
Jr. has

Ore.—Harry

been added

to

power,

the'survey

Great Britain

far

the

most

says.

|,

E.

publicly,
of

Building.

and

Hayden, Stone Adds
(Special to The Financial Chronicle)

also stand well above the average
for the Common Market ($1,239),

LOS

staff of Hayden, Stone & Co., 5657
Wilshire
Boulevard.
Mr.
Feder

report stresses.

in¬

member.

maintain

have

Finland,
its

markets

eighth
anxious
to
an

in

Britain

P.

was

&

ANGELES,

Feder

has

Calif.

been

—

PROGRESS

From two horses to 200-horsepower

/

/

6

rm tms.

new

.a

sfoufhtern

Belh Telephone & Telegraph Co.
37-yehr 5% debentures, due Dec.
1, 1997.
The price is 102.567%,
providing a yield of 4.85% to ma¬
turity.
The

Morgan

bought
sale

on

the

Stanley

issue

at

group

competitive

Dec. 5 by

bidding 101.67%
naming the 5% coupon.

and

The debentures

able

five

for

not redeem¬

are

On

years.

after

or

Dec. 1, 1965 the issue is callable at

--^

prices
ranging downward from
105.567% to the principal amount.
The

.

intends

company

about

$57,000,000

ceeds

from

vances

and

the

from

add

sale

its

the

to

use

of the net
to

repay

parent

balance

pro¬

to

general

funds.
Southern

Bell, a wholly-owned
subsidiary of American Telephone
& Telegraph Co., provides tele¬
phone service in portions of nine
Southern states. On Sept. 30,
the

had
phones in service.

yesterday—"petroleum"

was

primarily kerosine, the fuel that fed the lamps and cooking stoves of

ad¬

company

America. Sold by local grocery

and hardware merchants, it was delivered to them once a week. It was

Texaco that first met the urgent

Daily deliveries

soon

need for twice-weekly deliveries, with its horsedrawn tank

wagons.

followed.

1960

7,115,349

tele¬

In the nine months ended

Sept.

company

30,
1960
operating

total
$618,-

Bell's

Southern
revenues

were

457,000 and total income prior to
interest

,

on

interest

deductions

debt and other

funded

was

$102,210,-

000,. compared with $570,077,000
and
$95,951,000 respectively, in
the similar period of, 1959.
The
company's Sept. 30, 1960
balance sheet, adjusted to reflect
the current sale, indicates capital¬
ization

as

follows: funded debt of

$610,000,000, consisting of 11 issues
of
debentures
due
1972-97; and
$1,408,745,000 of capital stock and
retained earnings.

With Inv. Co. of N. A. V
(Special to The Financial Chronicle)

Norris F.
with Investment
.Company of North America, 1500
.COLUMBUS,
Krueger is
West

Ohio

now

Third

Avenue.

He

was

for¬

merly with Wagner & Company.
t

Three With Calif. Investors
(Special to The Financial Chronicle)

LOS
A.

ANGELES, Calif.—Hay ward

Burnett,

Ben

E.

Hicks

and

Robert J. Van Sickle have become
associated

tors,

with California

3932

Wilshire

Inves¬

Boulevard,

member of the Pacific Coast Stock

Exchange,

as

registered

sentatives. '




repre¬

today—the chief product of petroleum is

gasoline, moved swiftly from storage point to market in

giant, modern tank trucks. Today Texaco's fleet of red trucks serves more than 39,000 Texaco Dealer
stations

across

the nation. Alert marketing operations, based on service to America's motorists, have

contributed to Texaco's continued growth.

*

to

the

previously with J. A. Hogle

Co.

:

of

Richard

added

preserv¬

Dec.

on

$75,000,0(56

Goeller,

Zilka, Smither & Co., Inc., Oregon

Norway
($1,421)

t

EFTA may soon

important

member of the EFTA to U. S.

underwriting group managed
by Morgan Stanley & Co. and in¬
cluding 54 investment firms of¬
issue

S.

the staff of

An

fered

U.

Zilka, Smither Adds

political freedom. Possibly
history might have to repeat itseT.

Debs. Offered

its

(Special to The Financial Chronicle)

our

Southern Bell

with
the

relin¬

$75 Million of

of

nations

concludes.

survey

our economic

sake

West,

formula

a

($1,495),

($1,479)

to

association with the

European Common Market,
is continuing to grow.

The

those

and

capital, is

the

chasing

By
seven-na¬

popu¬

about $120 billion, or almost one-

bi-monthly sur¬
Western Europe,

The chief aim of this

total

U.. S.—represents

large .market.
United States

publica¬

million-r-about

89

the

the

centrated

and

The EFTA

for

Association

nations,

the

than

invested in the EFTA

alternative

at

of

large part of

freedom

ing

is

more

During the
quish

EFTA Area

More

is

vestors

association—consisting of the
Kingdom, Austria, Den¬
mark, Norway, Portugal, Sweden
and Switzerland—is eventually to

infinitely preferable. A

maintenance

wards

tion

21

collar

and defending it.
rcimposing certain
exchange restrictions, I have no

doubt

(22S7)

United

■

Capital Going Into

rent

v/ith the aid of

would

Half of Overseas

Manhattan Bank says

If the choice is between devalu¬

ing

The Commercial and Financial Chronicle

.

real

the

World, would frustrate
on

.

Ad¬

new

with

within

ceivable attacks

.

Before

gold

become just

as

6010

production

scramble

prices

would

mass

of

-

technological

progress

and

Number

abandonment

that

would

192

TFlXACO ^

22

The Commercial and Financial Chronicle

i

(2298)

.

.

Thursday, December 8, 1960

.

f

their

FUNDS

MUTUAL

investment

the

of

descend

there

marked by decline in
economy and securities. Euro¬

fund.

our

is

about

to

year

business and markets gen¬
erally fared far better—at least
until the fall. In any event, those
pean

who

people

funds

their

moved

1959 had cause to con¬

abroad in

Time

when only the nimble

was

big-time operators could navigate
in thfe strange streams of Europe.
And even they dabbled on a small
scale as. a general rule, for oppor¬
tunities
were

few

were

risks

thanks

Now,

—great.

the

and

to

American largesse and by dint of
their own hard work, Europeans
are

enjoying life

level
Old

before

never

World.

economic

an

on

known

in

the

business

the

Result:

innumerable and
no greater

opportunities

are

the risks

probably

are

than in the States.
on

of

Continent.

the

Not

that the Stateside small fry know

much

about European com¬

more

and

merce

their

than

markets

The

fathers.

of ; their
dollars in the markets of London,
Paris, Zurich, Milan and Frank¬
furt can be traced to the guidance
presence

P

other

less

much

It's

own some

days that doesn't
pean

little

stocks

these

Euro¬

or

investor

bonds. And for the
who

wants

a

real

stocks, under
the aegis of expert management,
fling

in

European

could

an

in

ties

identify.

$25,100,000,

from $18,800,000 a year earlier.
important, net asset value
per share had risen to $23.93 from

000

cash

made

largely

If the

to

portfolio contents, for the

most

part, rings no bell with the
Yankee investor, at least he will
trouble-

small

of

There

Eurofund.

is,

recently

are

such revered

names

is

this

course,

board.

provides
a

of

its

tal

an

no

less than

and

the Oct.

RESEARCH CORPORATION
Establish*d 1930

cents

41

a

a

92,872,398
the

Putnam Growth

electrical:

that

La

As

against

$14.69

of

of

Dillon,.% Read

convention

of

the,

.

Association

Bankers

told

on

:

Number

high of
a

that

ernmental

EATON & HOWARD
BALANCED FUND
II

CENTS A SHARE

Dividend from Investment Income

deal ;to

somebody

decline

that

CENTS A SHARE

Capital Cains Distribution

EATON & HOWARD
STOCK
10 CENTS

A SHARE

Capita! Cains Distribution
Dividends and Distributions pay¬

23 to shareholders

2,

P.M.,
I960.

24 Federal Street

Boston, Mass.




•

soon.

years ago

devastated

knows.

never1

and

.*

Thus.,

all Europe

Latin

was

American

countries, which had escaped the
war, were
rolling in wealth. If
the naturally
rich lands to the

on

the

way,

can

governmental

people

are more

develop

forms

(the

and

rich

in

educate

probably

irt^ieed of enlightenment

the poor classes)
the little
internationalists to the north can
counted

on

to

provide

yyyyyj

As

one

bankers',

little

^estimate

made

convention

a

at

noted,

-internationalists,

asset

cents

of

Equity
value

the

Fund

The company leases office space
Its

J.

N.

Irvington,
which
is also

plant

leased, is located at 49-51 Free¬
St., West Orange, N. J.

man

The

company

issue,

1,000

value

>

fiscal

reports

share

a

at

5%

is

authorized

shares

of

$100

to
par

non-cumulative

pre¬

share. *,

a

31)

rate

Wall

Street

50

•■tf't"'-

'

of

share

one

of

preferred to

common,

Said

stock.

is redeemable at the

option

of the holders of said stock at par.

i'-.;•/;» »V

Investing i Corp.

of

shares

.

stock

VV'-;

,

shares
presently issued and outstand¬

ing. The preferred stock is con¬
vertible to common stock at the

the

(Oct.

year

❖

to

Corp.^sustained
assets for

net

"-

The

company

is

authorized

to

-issue

re¬

1,000,000 shares of :10 cents
?par value common stock, of which
of business Nov, 30 were $10,407,.500,000 shares, are presently issue d
116, equal to $8.35 per share. This and
outstanding.v • The1 • common
compares with $9,678,492 at Dec. vstock possesses voting rights. The
31, 1959, equal to $8.30 per share. (company's Certificate of -dncorpo..

ports total net assets at the. close
•

the

a

year

,

'

-

.

..

'

-

;"

Equity

the

through

Dracott

gain

a

total assets art Sept .30 to
189

:

$6.94
•

■
.

share

Per

from

*

■

■

Washington

j

*

M

Fund^ Inc. put

u

a

value

'

$5.66.
•

t

in

*

year
to

Seventh

rose

1

ass o c

i

a

te d

with

Both

,

Mitchum,

were

&

$10.26,

'

Revere

assets

Fund

Oct. 31 to
Per

the

for

#

reports
fiscal

a

gain in
ended

year

$1,049,995 from $127,391.
value -rose
to
$14.72

share

from

(Special to The Financial Chronicle)

assets

.

j

ANGELES, Calif.—Michael
S. Berry has joined the staff of
Evans
MacCormack
&
Co., 453
South Spring Street, members of

,

Stock
260

the Pacific Coast Stock Exchange.

and

formerly with Pa¬
Company
Morgan & Co.
Coast

."yV >

-

ANGELES,

Millar

has

Calif.

—

-

Launce

become* connected

West

210

Securities

of

bers

Seventh

the

Street,

Pacific

Exchange. He

mem¬

Coast

Sto~k

formerly with

was

Morgan & Co.

Johnston & Co. Opens

,

(Special to The Financial Chronicle)

CLEVELAND
Johnston

and

HEIGHTS, OhioCompany has been

-formed with offices at 3180 Monti*

*

of

Fund increased

thfe "fiscal

Bolding Admits

*

Commonwealth
to $15,124,-

ended Oct.
31, compared with $13,300,770 a
year earlier. Net asset value on
in

,-

(Special to The Financial Chronicle)

Mr. Berry was

cific

issued

stock

common

with Marache, Dofflemyre & Co.,

LOS

$11.88.

Net

'•

LOS

Jains Evans MacCormack

at $20,196,022,: compared with
$19,041,196 a year earlier. But
assets per share dropped to $8.73
#

of

outstanding.

-With Marache,: Dofflemyre
:

B.

Investors

net assets at Oct.

*

and

.

for¬

Jones

31

from

shares

McClelland

James

Street.

merly with
Templeton.

r

■

*

u a

and

have " becom e

$54,573,-., Dempsey-Tegeler & Co., 210 West

from ; $49,474,230.

good

the

•*#.

*

Corp.;. reports

sound

than

be

general

at 992 Springfield Ave.,

se¬

declared Nov. 1.

re¬

;
$59,538,476 from
-ration does not. provide for any
$63,663*555. on the same date a
pre-emptive rights • Assuming all
year
ago."' Assets
(Special to The Financial Chronicle)
per
share
the shares offered hereby are sold,
dropped to $22.03 from $23.56;.
- LOS
ANGELES, Calif. —John H. the company will; have ? 650,000
♦

earlier.
one

deal of the money needed to
give
their economies a lift.

of record at 4:30
December

doubt

which have been get¬
ting American largesse with more

CENTS A SHARE

Dec.

we

it will be sometime

Still,

their

able

Share

day

south of us,

FUND

Dividend from Investment Income
15

great

a

start a Cuba fund

may

net

.

gov¬

Some

Venezuela fund, but

or a

only 15
15

desired.

$70,000, will be used for
corporate purposes.

distribution

from

$60,000 will be

quired to finance additional in¬
ventory and the remaining funds,

to

share

a

estimated

An

#

•

stability leaves

be,

cents

will

$90,000

The company plans to
approximately $10,000 for
advertising in national magazines.

$12.17 against $12.03 a year
ealier, adjusted for the year-end
capital
gain
distribution of
33,

■

Africa, where

31

approximately

spent.

allocate

ended Nov. 30 to

be traced to disturbances in Latin
and

be

share.

a

planned, an
and
sales

•

Niagara

this year. But, as he was quick to
note, much of the decline was to
America

that

gain
share in¬

was

« v

$223,000,000 in 1958
$85,000,000 thus far

$

has

advertising

campaign for which it is estimated,'

from

a

during

Wellington

net

rose

year

.

of

Jan. 11, 1957, and
in the-manufacture,
and .sale v of various

30,

over

.mere

assets

net

cents

20

Oct.

year was

92,903,025 .from 76,079,729.I

postwar

31

close

shares

of

State

are

year.

to

E&H

of

$7.56 at the close of the 1959 fiscal

foreign

the

-

on

company

intensive

an

curity profits realized in the latest

$585,947,573 for the fis¬
cal year ended Oct.
31, against
$575,518,119 a year earlier. Assets
per share dropped to *$7.07 from

the

Jersey

engaged

of

ferred stock, of which 1,000

bond issues sold in the New York
a

Oct. 31

of the year to $7.07. A

.

Inc.^ reports

laws

the

30,

...

Fund,

is

reports net assets
the fiscal year
$585,947,573, a
rise
of
$10,429,454. Shares out¬
standing rose by 6,823,296 to 82,903,025. Net asset value a share
slumped from $7.56 at the start
ended

of

assets

New

reports for

ended

total

of

increased

*

*

The

-

Affiliated Fund

assets

Sept.
Sept.

market had fallen from

Broadway, New York 5.N.Y.

Fund

to $45,762,800,

jjs

reports

Net

on

$115,889,254

Affiliated

Investment
that

Corp.

30.-

June

♦

European-holdings does not ex¬
tend to all parts of the globe.
Only last week Arthur L. Wadsworth

in

ago

year

tribution

$13.41 of Dec. 31 and

of domestic mutual funds for

asm

of

*

$159,468,729

1959..

enthusi¬

*

Investors

off from the

investment

this

close

the

share on a "best, efforts"
■*:* \'y-\ *S: 'V--V
company was incorporated

under

creased 17% to $13.19, after ad¬
justment for the capital gains dis¬

Sept. 30 net asset value
share was $13.35. This was

totaled

of

at

and
were

on

Fiat.

knows,

year

year,

-

per

student

This

$2.76.

1959.

and
RWE.
The
tenth, known to nearly all Ameri¬
cans, is the Italian auto maker,
any

fiscal

increase

against 90,518,666 shares a year earlier. The
company distributed from net se¬
curities
profits 9 cents a share
in 1960, compared with 9J/2 cents

National

preferences

the

fiscal year net

$267,612,897

shares

at $2 per
basis.

The

■:

earlier. There

fiscal

last

City,

*

*

V

;

.

were

with

year

in

Houston,

York

-

of 197%. Asset value per

share

per

Securities,-.Inc.,
New
publicly offered on
23, 150,000 shares of Softol,
10 cents par common stock

Harwyn

same span Puritan elimi¬
packaging
Briggs & Stratton, Chock cosmetic and toiletry items.
Full
O'
The net proceeds to the com¬
Nuts, Flintkote, Klein
Department
Stores,
Liggett
& pany, after deducting expenses es¬
Myers Tobacco and Mack Trucks. timated at $10,000 will be $230,000.

a

Gevaert).

NATIONAL SECURITIES &

of

31

of

$2.96

the 10 largest holdings
portfolio of Eurofund, five

-

Sol'tol Common

nated

assets

of

are

Harwyn Offers :.;v

Over the

reports that at the

compares

Four

Illi¬

of

(New Jersey) and Northwest Air¬
5%% convertible preferred.

assets totaled $256,099,556 and net

of whom
in industry

investors,

Thomson

Co.

lines

disbursed.

end

distin¬

are

chemicals

Philips,

today
for Free Prospectus and
descriptive literature.

dividend

was

(Bayer, Badische
Anilin, Hoescht, Zoutindustrie and

porate stocks selected for

a

Dividend Shares

seven

banking.

Well,

investment in

were

with $68,share a year

:

all

Europeans,

have made their mark

in the

current return. Send

120

gains

share

Considering the

members

19

guished

are

diversified group of cor¬

share

per

nature of the venture, it is under¬
standable that

Investment

Dry Dock, Penn-Dixie Cement,
Philip Morris, Standard Oil Co.

During the year the num¬
ber
of
shares
rose
to
7,069,516
from 6,686,406. On Nov. 30 a capi¬

All-

no

partner, and Madelein Reinert and
Marilyn Reinert, limited partners.:

com¬

portfolios:

&

$71,300,450

compares

878,296 and $10.30

Frank Pace, Jr.

Of

its

Tank, Phelps Dodge, Pure
Oil, Revere Copper & Brass and

earlier.

as

Philip D. Reed, Hobart C. Ramsey
and

assets

This

$9.66.

mighty American banking house
of
Glore, Forgan. Also on the
board

these

added
to

with
New.,

Street,

in the Exchange,
Reinert,
general

Howard

Inc.

and I net

the

Forgan.of

had

stocks

Dec. /15

Broad

15

membership

a

and

ended

tional

the close of the Oct. 31 fiscal year

Russell

it

months

three

Nov.

net assets amounted to

J.

rome

&
Fuel
Associates, Harsco
Corp., Metro-Goldwyn-Mayer, Na¬

will

fund's-President
was

•:

,

at

of

as

City.- Partners ' will-.foe Je¬
S. Reinert, who will acquire

York

Gas

group

example^ its Chairman:. S. Sloan
Colt, one of this country's most
distinguished financiers. Eurountil

offices

members of the*
Exchange, will

Co.,

Stock

formed

be

Asso¬

•;

&

York

New

nois,
American :: Metal
Climax,
Billups
Western' Petroleum;
Champlin Oil & Refining, Eastern

The

who

the

American

capital

a

dealers

,

Reinert

securities to be Whirlpool. During the same period
it increased holdings of Dentists
Supply Co. of New York, P. LoriL
Colonial Fund, Inc. reports that at
lard, Newport News Shipbuilding

might properly wonder what fas¬
the
European
shopper.

mutual fund which

a

for

manager

securities

Formed inN.Y. C.

exchanged for shares of the fund.

for

Radiotechnique
is

authorized

Reinert & Co. to Be

solicit deposits of

of the men-who grace the

board

dealer

of

cinated

SERIES...

$50,0001

at

set

an

Varian

and
; /

31

mon

150,000 shares of common stock,

as

who have
been infatuated the last couple of
years
with
Space
Age
stocks,

STOCK

Oct.

Goldman, Sachs & Co., will act

..

identifying

many

American

\NATI0HAL

is

has

fund

"A"

'

during

,

of

New!

member, and Richard M. Adler.

the portfolio
ACF-Wrigley

were:

Street,

City. Partners will be Joseph
Golasmith, the firm's Exchange

M.

\

Morgan

exchange

Government

S.

U.

and

obligations.-

with

deposited

Gas

ciates.

$20,000,-

are

from

period

of Dec/28 with

as

Wall

72

at

York

Puritan Fund, Inc. announced that

depositary for the Fund prior
Feb. 1. The minimum single

as

of

up

value of at least

ural

Guaranty Trust Co. of New York

are

invested in foreign securities: The
is

offices

Stores, Anaconda, Corning Glass,
Industries, General Foods,
Idaho Power, Chas. Pfizer, Radio
Corp., Schering, Signal Oil & Gas
"A",
Trane,
Union-Texas
Nat¬

companies.

established

of

market

$17.92 during the year.

balance

will be formed

-

Dresser

offering price is the net
asset value, $1,000 per share, and
the exchange will not be consum¬
mated unless securities having a

More

of its assets

in the

Public

up

More than 86%

Eliminated

diversified invest¬
designed to appeal
substantial investors, is making
offering of its common stock
exchange for blocks of securi¬

to

pronounce,

net assets of well over

a

ment company

or.

men

31,
1960,
Addressograph

-

Goldsmith, Adler & Co., members
of the New York Stock Exchange,

period
Multigraph, American
Telephone
&
Telegraph, Continental Can, R. R.
Donnelley & Sons, Middle South
Utilities, Pepsi Cola and Safeway

newly-formed

Eurofund, at latest report, had

American

fund

mutual

rare

a

few

that

titles

Street

Adler & Co.

a

Stores.

Inc.,

Fund,

Street

Federal

Weschel-Bank
of

cents

30-Oct.

included:

whose

Hypotheken und
along with dozens

Bayerische

provided by mutual fund manage¬
ment.

April

less

Euro-

as

company

12

of

Additions to the portfolio in the

shares. That's only
than they pur¬
more
buoyant 1959.

in

distribution

share, the figure was, 1.9% below
the previous year-end.

portfolio is stuffed with such jaw-

a

economies

a

breaking names as Societa Finanziaria Telefonica per Azioni and

have

scale never before
known in all history, the small
American investor has acquired a
sizable stakek in the burgeoning
And,

companies such

Here's

Main

gratulate themselves in 1960.
.

are

gains

ac¬

year,

pew

chased

The Little Internationalists
curtain

lean

To Form Goldsmith i

,

Clark, they've bought $2.1 bil¬

$200,000,000

a

this

in

even

lion

on

day of its 1960 fiscal year"
$14.52 per share. After ad¬
justment for a year-end capital
was

cording to Calvin Bullock's Robert
E.

The

the last

now

listed on
Exchange.

Stock

York

New

And

ROBERT E. RICH

BY

companies,

of the stocks

4.4%

own

cello

Boulevard

to

business.

PORTSMOUTH, Va.—Norfleet T.

securities

Pearce

S. Brooks Johnston,

general

has

been

admitted

to

partnership with James
W. Bolding, Jr. in Bolding & Co.,
525 High Street. ...
?

in

engage

Officers

a

are

President; C.

Gilman
and

Johnston, Vice-President
Treasurer; and Ruth.John¬

ston, Secretary:

;

.

.-v.

-

:

Volume

192

..Number 6010

.

.

The Commercial and Financial Chronicle

.

Will

war.

it

current

a

(2299)

earnings to

Continued from page

period,

same
were

averages

gust

October,

but

soft ■drink

stocks and office equipment stocks
were

points

their
and

area

domestic

oils,

August

top

find many

we

brewing,

aircraft,

cigarette and canned goods stocks
making new highs.
In fact, well
225

over

1960

stocks

have

highs

during
bearish period. :-'y

Also,

quite
in

stocks

made

this

so-called
-

-

v:

•

„

from

the
and vari¬

apart

the

new

averages

today, the
following good quality stocks were
selling at these prices: American
Chicle 48, now 68; National Dairy
ous

of investors

throughout the world
discounting
their -opinions

and

15%: Then the Dow' sometimes four or six months to
came
down this year a year ahead. Sometimes you can

from

to the 565

1

flecting the combined intelligence

up over

Industrials
80

price trend, it should be

stocks- mentioned that the market in its
role of forecaster is constantly re¬

In 1959 the Dow
off 17% from Au¬

were

to

over-all

cigarette

yet

7%.

up

1

groups,

year

a

ago

spot this discounting

process very

clearly by chart action. - In gen¬
eral,
these
opinions have been
discounting a business decline for
time.

some

Psychological factors
have a very important influence
on the price behaviour of individ¬
ual

stocks

and

the

stock

itself, but this is usually
to-day

market

dayLonger

on a

weekly basis.
term trends depend primarily
the

or a

on

business situation.

However, there is also

a

great

difference between industries and

49, now 61; Bristol-Myers 45, now; this further complicates the job of
62; National Biscuit 53, now 76;-. discussing the market iri any gen¬
: Just as some
stocks
Gillette 57, now 88; General Foods eral sense.
68; IBM 408, now 558; move up or down at different
times and for different reasons,
48, now 69; Reynolds..
Tobacco
62,
now
91; > Phillips so do industries respond differ¬
Petroleum 42, now 53; Otis Eleva¬ ently to the various stages of the
tor 39, now 56; American Tel. &- business cycle which they happen
51,

now

Woolworth

.

,

to be in.
Perhaps in a managed
and ,General.
American Transportation 54, now' economy such as we have been
living in we won't have true Bull
73.
Does anyone still wonder, why"
the word "selectivity", is currently or full-fledged Bear markets any
It may be here to stay. To
so
popular in Wall Street?
Do more.

Tel.

77,,

95;

now

-

still wonder how

you

tator

type of market can
himself as being all-out

express

bearish,

comment

a

this

on

all-out bullish?

or

it's quite impossible.

?..

..

Really
/

So, since the market has proved
for

move

and

time

long

a

up

down

or

group

with their

like

or

we

single unit

a

in

the

no

Greeks, no oracle to
the task of forecasting
and deciding what to

when to do it has been mul¬

tiplied many times. Therefore, we
can
only feel our way cautiously
--using various kinds of charts at
times, together with basic statis¬
tics
and
other
market
aids, in
order to try and reach a decision.
Many Faceted Problem
A forecast

on

v

stock should be

a

unhedged as possible, and an
can
seriously affect one's

as

error

and
perhaps .take
pocketbook
to correct.
Yet, even after
sifting all the background pro and
con factors and having decided to
buy or sell, there still are other
factors you must take into- con¬
years

sideration.

the

same

entirely

These include sudden

all work with
tools, but may arrive at
different conclusions.
is,

we

Deemed Attractive

Issues

stocks, and
Ouija board,

buy, what to sell, what to avoid
and

tion. The fact

sister

have

the

to,

trend

the

doesn't-

misleading ^averages is
practical and does not make
any sense to me, but I still note
that many of the very well-known
forecasters are sticking to their
over-all bear market interpreta¬
not

often perform at vari¬

same
ance

refer

as

it

individual issues

even

because

that

follow the

market
on

cannot

;

Although

over

an

all

-

price

-

earnings

pinpoint exactly in what
stage of their business cycle in¬

basis,

or

industries

dividual
in right

or

stocks

are

I have to state that
many issues have reached an area
where by their own price-earn¬
now,

ings or technical measurement,
they seem quite attractive. Pos¬
sibly
the
most
important
and
probably the most dependable de¬
terminant of stock prices is the
level and trend of earnings and
dividends.

During the
Eisenhower

the

had

While

market.

do

we

1950's

we

confidence
not know

yet how business will perform
in Mr. Kennedy's Democratic Ad¬
as

ministration,
that

it

during

cially

between

quite

is

near-term

the

now

obvious

trend,

espe¬

interim period

the

and Jan. 20, will be

spending, inflation . and
corporate management,' defense
international developments.
V;
and especially, the'
.' ponderables of suddenly changing
-We do know that the key to to¬
public psychology, as well as one's' day's investment policy is recog¬
owri human frailties, which some¬ nizing a statistical value that may
times make you believe that: the have been over-depressed because
market will always rise and fall of
tax
selling, or several other
manner,"-;andV factors.

sell stocks hear the top or. bottom-'

yNow this approach : reads very.
vwell on paper, but it isn't, prac-i
,

:t

Although ,Mr j Kennedy

has denied it, the
row

margin

lack-, of

curb

a

some

of

Democratic nar¬
victory and the

voters'

mandate I may

of the liberal spending

When you- get- ideas that were put forward dur¬
some
bullish
information ^hn' -a ing the election campaign.. Cer¬
stock and if it is substantiated by tainly the make-up of Congress
favorable statistics and a strongly should go a long way toward pre¬
interpreted technical pattern you venting any unsound legislation
a
radical spending program.
should buy. it^ regardless of what or
tical

any- more. ;
.

the

general stock market averages,

the business news, or other, stocks,,

happen to be doing at that time.
Each group seems to be an aver¬

the

But

tions

Will
new

three

unanswered

ques¬

are:

now

more

inflation result from

government policies?

What

age

will the future attitude of the con¬

pay

sumer

with a trend. It really doesn't
to wait too long, like some
shoppers who shuttle from store
to store looking for super bargains
and

then return to the first store

Will labor unions gain

be?

of

the

extreme

going
ual
•

•

on

the

profit

,

this has
have been

yy

-

trying

to.




-j

y

.y

analyze ; the

Many

been trying to

ourselves

and

by cost
other

we
must remind
the
bears
were

and
that

dead

squeeze

automation

cutting,

measures,-

in their opinions in
1953-1954 and again in 1957-1958.
wrong

Admittedly, business is in
downturn

erate

it

and

is

the

at

of

usually

been

extreme

by

price
year-

portfolio changes and belated

froir>

the

of

some

being made

acting

poorer

into others that

candi¬

are

dates for higher levels—the mar¬
ket has generally been able to

straighten

mod¬

a

moment

problems

out

its

of

most

tax

business

with

mid-December

by

and,
often than not, by that time

more

has formed

So

far, I

solid base for

more

a

traditional

a

year-end

will

averages

break

low, and expect that

easier

money

has

recent

mid-January.

not able to forecast

am

clearly for the present.

very

give

(1) I am afraid that the priceearnings multiplier will be lower
.

next year.

(2) The unit labor cost has ris¬
more, than prices.
.(3) The competitive threat from
low
cost
European
production
-

en

cpntinues.
A decline in investment in
plant or at least a stretching
out in capital programs is taking
place.
However, the recent Mc¬
(4)

new

Graw-Hill

cline

in

1961

is

and,

estimate

capital
hardly

as you

need

to

be

reminded

that

,

as

in the

1930's and in

the economy was

1945 when

stimulated by

a

de¬

Continued

on

page

24

Of Chicago, Inc.

ture, is going to sell down as far
as many people are predicting.
I
ranging any¬
where

525

from

to

low

as

450

as

much

I
very
doubt this will happen.
Dow-Jones,

but

in

Back

1953, the Federal au¬
changed course and did

thorities

possible

everything

to

the

ease

monetary situation. One step fol¬
lowed another in quick succession
continued

these

efforts

re¬

picture. The

Charles G. Scheuer

thing happened

same

JHft

-

business

unfavorable

the

versed

George F. Hummel

>'

j

i

Glen J. Thoma

Theodore E. Wouk

again in 1957, and now the Fed¬
twice

rate

discount

cut the

Reserve has

eral

lowered

and

President:

around

doubt

Federal

the

that

Board

can

While

million.

$500

ease

up

Secretary: Theodore E. Wouk, The First National Bank of Chicago.

I

Glen J. Thoma, Harris, Upham & Co.

Treasurer:

Reserve

Directors:

supply much more without fur¬
ther affecting the gold outflow,
or
that the new Administration
can

Scheuer, Wm. H. Tegtmeyer & Co.

Vice-President: George F. Hummel, Reynolds & Co.

the money

on

Charles G.

reserve

requirements, giving the commer¬
cial banks net free reserves of

Friedman, Boettcher and Company; Adolph

Leonard

I

Egner, Shearson, Hammill & Co.; John P. O'Rourke, Jr.,
J. P. O'Rourke & Co.; Morey D. Sachnoff, Cook Investment Co.;
C.

James H.

Scott, Blyth & Co., Inc.

resort to too much additional

deficit

financing, there are many
things taking place that indicate
that the readjustment period, or
whatever we prefer to call it, will

These
of

!

distinguished (Security Traders Association

Chicago,

Officers

Inc.)

invite

you

attend their

to

January 30th party at the Ambassador Hotel.

a level not much lower
present, and that a mod¬
business recovery will be

pull out at

i

'

at

than
erate

The CHRONICLE will

half of

second

favorable

A

1961.

the

by

underway

and

another is that the rate of
individual savings has advanced
to
about $25 billion
annually—

news

come,

lion

billion

The

fact

that

briefs

was

bil¬

%

Our rates

and return

this important meet¬

.

in

.

8-page specM section.

an

place

your

on

these

you

wish

advertisement

low. Please check size

are

for preferred positions in the Chicago

now

Traders issue.

consumers

.

We invite you to
pages.

1959.

in

than

more

than

nearly $2

more

and

1958

cover

ing of the Chicago Traders with candid photographs

the

is

factor

high level of personal in¬

current

V

;.y.

'<V -''!

i

•"

'

71

have

voluntarily chosen to put so much
of their income aside in the form
of savings

is extremely bullish for

the future in my

opinion., Another

sign is that construction
estimates are pointing to an in¬
crease next year due to the great¬

favorable

supply of mortgage money at a
lower cost.
Finally, there are two
other important
factors to con¬
sider.
First, legislation such as
public housing, school construc¬

WILLIAM B. DANA CO.
"./

;

•*

•
•

insert

Please

Association
NANCIAL

our

tion, defense and agriculture will
probably be passed at the next
session of Congress to stimulate
the economy and give it a psy¬
chological lift. Second, individual
old line institutions and growing
investment
stant

trusts

con¬

of Chicago

the

•

above

as

in

the

Security

Traders

Picture issue of THE COMMERCIAL & FI¬

CHRONICLE

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in

space

checked below.

We agree to pay

•••

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er

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over

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$1

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(13 inches

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NAME.

.

STREET

Short-Range Forecast

We
this

3%

a

know, General Motors

:

further

of

expenditures for
very
pessimistic,

have heard estimates

at

multiplier has never been as high
as
under the Republicans, except

I'll

several reasons why.

you

known adverse factors in the

year..

Administration?

Dow-Jones

little higher
Beyond that

a

discounted
the
wellpic¬

generously
many
of

quite

price-wise

the
any

the

on

Security Traders Association

con¬

market—which -already

this

reason

level.

not to

to

ditions prevailing by next spring,
it is difficult for me to believe
that

recovery.

technical

see no

to believe that the Dow Industrial

decline still
further and reach a low point in
the first quarter of 1961. But since
the signs that are discernible now
indicate
some
improvement
in
likely

growing

alb the time in individy during periods of economic stress

stocks.

When

divergent,

characterized

weeks

contained,

580-585

reason

625-635

statement I

.

offset

billion

price-earnings be evaluated
the investing public under a

Democratic

as

pessimists.

corporations have

will

by

a

two

have

well

the

Industrials, perhaps
into

stocks

figures, the over¬
all economic picture doesn't nec¬
essarily coincide with the views

funds.

only to find that the article they

In
rotating market, such
been, clearance- sales

first

be

expect
year-end rally to
and carry back to at

place

techni¬

unemployment

at the expense of the stockholder?
Another riddle to solve is: How

like originally and wanted to buy

has just been sold.

the

December

no

season¬

tax sales and switches

$1

or

ahead.
Although
economically and

will

see

traditional

take

period

end

the

least

the business front, especially from
the steel industry, and increasing

in

opportunity to buy

has

adverse

market

I also

seems

ally,

still

several

all

the

and

reaction

holding above

attractive selective buy on
interim
setbacks during the
an

cally,

Picture

market

uptrend,
like

irregularity—resulting from

about

an

the

leading stocks are begin¬
ning .to show signs of bottoming
out, while many others- are al¬
ready in a rather clearly defined
many

factors, including a continued lack
of very much bullish news from

saved

give you.

to

don't

with

contend

to

and

the

whole is undervalued

a

as

that

say

or

the ^traditional

13

normal

Business

The

in

in

times

18

know, but I
worry about it at times. However,
you know you can't use
a slide
rule on price-earnings multipliers
because of the growth factor.

mergers,-

shifts

.

I

of

.

I

While

political changes,' increasingly influenced by inves¬
tor's changing opinions about the
new
space-age developments, re¬
new
President's
attitude toward
search breakthroughs; ;i^
international

return from

more

a

times?

15

slowly

multiplier

23

From

a

technical

standpoint,

STATE—

CITY

the market's ability to hold above
the double bottom

the

September

565-570

Dow

encouraging

-

-

represented by
October low of

Jones

-' sign.

was

a

most

Technically;

BY

.'I—

—L-—~ DATE—

—_Tr—

24

1

The Commercial and Financial Chronicle

(2300)

.

.

.

Thursday, December 8, 1960

{
er

prices

will

for

billion dollars
plant and equipment.

spend
new

over

a

We have so over-expanded
eur economy with sufficient plant
capacity to satisfy the nation's de¬
mand for goods, that any further
(5)

brjng dis¬
However, excessive in-;

slowdown

ventories
'

bound to

is

locations.

being reduced.

are now

Looking

Industrial

Dow-Jones

decline

normal

mid-

after

January into February and March.
At this

writing I cannot predict a
new low, but just a few stocks in
that average such as Procter &
Gamble, duPont, Eastman Kodak
and Union Carbide might drop 15
points and such action could
break the old low by a small per¬
20

or

centage and, of course, that would
cause investors to be alarmed once

again, but

as

not able

am

such action.

forecast

to

I said, I

Market of Stocks

A

Now, it is all very well to dis¬

plus and minus factors about
market and to try and

cuss

stock

the

predict the direction of the trend
in
the
averages
for tomorrow,
next

week,

month,

next

even

or

the first six months of 1961. When

moved up or down
less simultaneously, as it

everything
or

more

did in the old

days, and there was
a 50-50 chance of picking the right
trend to follow, the stock market
was a relatively soft nut to crack.
Today, however, with public psy¬
chology becoming an increasingly

factor, with investors
educated, better in¬
better advised, now
than ever before, and with
the
international
picture constantly
shifting, you just can't talk about,
important

better

much

formed

and

consider this market

or

single

as a

unit, but rather as an assortment
that

kets

rently

and

bull

unrelated

of

going

are

bear
on

concur¬

individual

among

mar¬

stocks

Price

Autos:

half

40%

down

are

highs of

their

from

50%

or

year

a

The industry is
perpetual
style
changes, labor problems and con¬

and

a

should
today, "What do you think

Therefore,
ask me
the

of

it

someone

market?"

considered

it

shouldn't
if

facetious

I

be

replied,

"What market?" For each individ¬

ual

group,

oil,

steel,

whether it be aircraft,

constitutes

electronics,

or

copper

separate market, as
does each individual stock within
a

the group

itself. As I said before
keep on repeating, each
also has a trend and a

and must
group

price-earnings

ratio

of

its

own.

Good old-fashioned caution should

be

not

barrier

a

thusiasm.

If

I

to

were

selective
to

en¬

out

pick

favorite groups at this time,
they would be aircraft, food, do¬
mestic oil, savings and loan com¬
panies, shipbuilding, meat pack¬
ing, natural gas and stocks in the
field of leisure time such as movie,
my

vending machine, leasing services
Stocks

electronics.

and

in

the

heavy industry group will not be
popular for the present, but lead¬

issues in these groups have
been pretty thoroughly liquidated
ing

it is no time to sell them.

and

this

connection,

brief comments

here

are

In

some

various groups.

on

Specific Recommendations
Airlines:

This

group has bee**
well over a year.
Most stocks are selling below book

declining

for

value, and have discounted many
of the problems of regulation and

competition.
While not immedi¬
ately attractive, I do think United
Airlines

has

the

best

term
in this

long

prospects of any stock
group, and over a period of two
or

as

three years could earn as much

$6

or

$7. Delta

(26), American

(19) and Pan American (17) can
also be bought, but only for longer
term

holdings.

Aluminum:
much

as

50%

Stocks
or

are

60%

down

from

as

their

lyghs.
They have to contend
"with heavy over - capacity and




benefits

research

science

and

growth

industry.

include

ago.

stocks

the

of

that

think

I

indecision.

sumer

leading

auto

com¬

panies are down pretty close to a

low, but I hesitate to recommend
aggressive new buying. Longer
term favor Ford
(63) and Gen¬
eral Motors (41).
;
Stocks

Building:

also

are

off

their highs and,

with easier
money,
expect a moderate in¬
crease in
public works and con¬
struction for 1961, but not a big

from

residential

in

increase

Stocks

building.

cheap.

statistically

are

My

tons

Raytheon

Dixie

(26) and Marquette Cement

(48).
Chemicals:

Are

substan¬

down

tially from their highs. With de¬
clining revenues, rising costs and
chemical

stocks

the

margins

profit

narrowing

cheap

not

are

selling at 15 or 25 times earnings,
but

long term growth factor.
Still
basically strong for long term in¬
vestment

suggest
Allied
Food Machinery

funds,

Chemical

(49),

Freeport

(57),

(27), In¬

Sulphur

underlies continued favor¬
opinion of these six aircraft
stocks: Martin (59), North Ameri¬

diversification

the

sources,
ed

continue

to

terest

of

will

rates

continue

low

at

While

attractive

chases

at

the

Foods:

investment

during

groups

this

action will

hance

period
this

Consolidated

are

(34),

Rails:

behind

gory.

industry-wide efforts to cut
considerably improve the
outlook for selected companies in

Aviation

(42), Northrop (44),

Lockheed (26) and
Garrett
(55).
If I was picking
just one I think it would be Boe¬
ing because of their expanded
research department. It should be
(35),

Boeing

defense

added that each and every

stock,

matter

no

diversified
is

the

how

large

company

may

and
be,

inherently speculative.

stocks are down
from
their
highs, but many of
them are selling at 20 to 25 times
earnings. I suppqse this is charac¬
teristic
of
an
industry that is
Drugs:

Drug

so much money on re¬
search and development. There is

spending

excellent growth in this group if
the government doesn't interfere
too much, but while worthwhile
holding would be inclined to wait
for lower prices before initiating
any new buying program.
As a
package in this industry suggest:
Mead
Johnson
(149),
BristolMyers (57), Baxter Laboratories
(52) and Pfizer (29).
Electric Utilities: Are still sell¬

ing around their highs reflecting
lower
money
rates
which
will
probably continue for a while. Al¬
though stocks in this group are no

bargains,

they

invest¬

good

are

ments for long term growth.

yield

average

is

pretty

low

The
and

should be taken in the selec¬

care

tion

of

other
more

new

plus

commitments.

factor

is

conservative

Congress

than

was

that

An¬

with

make-up
generally

a

of
ex¬

pected, I doubt that they will au¬
thorize or appropriate
money for
competing power projects such as
the

TVA.

Suggest the following:
(38), Illinois Pow¬

Union Electric

Plate

tion and

increase its $2

well

production should increase.
Armour (36) is in the midst of a
major chemical expansion pro¬
gram and chemical assets may ex¬
ceed
50%
of the total by
1962.

is

last

the

this

for

a

(36)

Cerro

should

earn

dePasco

about

(30)

around $4.

$5

(52), and

Automation:

The

1961

dividend

down

Stock

Wilcox

Babcock

Yield

secure.

seems

selling
1957 high of 65 V4.

5.3%.

from

(34):

Im¬

portant producer of steam gen¬
erating equipment; also engaged
in

atomic

Profits

projects.

im*

provement expected in 1961. Con¬
secutive dividends paid since 1881,
.excepting

1939.

in

w

:

W. R. Grace

(34): A diversified
operating and holding company
with chemicals the major source
of

American

'South

revenues.

operations will be expanded over
next several years.

estimated

net

Slightly high¬

for

4.7% plus 2% stock.

Yield

1960.
■

Metropolitan Broadcasting (17):
for

Net

the

be

current

the

in

best

quarter

history

full year earnings to $1.25.
TV

on

new

Stock

likely to be acquired.
be listed

A

station

radio

and

station

may

and boost
are

may

the New York Stock

Exchange.
General
Tire
(50): The fifth
ranking domestic rubber fabrica¬

tor;

also controls Aerojet Gen¬
a leader in rockets and proExpect
earnings \ to
fiscal

in

recover

1961

this

from

year's estimated showing of $3.80$4.00.
Foreign activities are 'in¬
creasing and ownership of RKO
„

Ranco

General and the Yankee Network

nal

further

long term holding, in my opinion.'

earning

Continental

good. Estimate higher
earnings. The $1.60

are

fiscal

eral,

and
\

pects

pellants.

(38)

Oils: Cost cutting programs and
efficiency of operations have tak¬
en
place in this industry on a
wide scale for quite a long time.
The rebound
of earnings which
began last year is likely to con¬
tinue, especially for the domestic
companies and, on the basis of low
price earnings multiples or high
yields, the following stocks offer
above-average investment oppor¬
tunity: Standard Oil of Indiana
(44), Richfield Oil (86), Phillips

Petroleum

trend

(41), General Railway Sig¬
(30), Universal Match (61),
National Cash Register (56). and
Burroughs (28). IBM (556) and
Addressograph - Multigraph (88)
are attractive for purchasing and

'

Carrier (30): A major factor in
conditioning.
Growth pros-:

ment, and industry on, research
development, projected to rise
to $15 billion in
1961, provides
unusual
opportunities for wellestablished companies in this field.

Copper
(35), which has
charged off $2.50 per share for
development at new
Christmas
mine and could earn close to $6
which

and

longer

(41).

and

(24),

Copper

the

over

Rubber

Science

ration

Magna

and

very

..

_

air

growing emphasis of the govern¬

(43), Kenneqott
(75)
three speculations, Inspi¬

1962;

are

Especially favor Goodyear

S.

U.

Anaconda

by

There is long

real recovery over the longer

term.

as

years.

selling in price
where they are interesting

group

areas

reached
their highs in 1956 and have been
in a bear market for a long time.
With
copper
prices at 30c and
likely to remain so, most com¬
panies can do quite well and the
time to buy them is when they
are low as they
are today. Favor

and

two

growth in this industry and
all. four of the leading issues in

coppers

Climax

big

term

attractive speculation.

Metal

the

companies are selling down
to 50%
from their highs of

20

(40) is helped by its
very large sporting goods opera¬
tion and Swift
(47), the largest
company in the industry, is show¬
ing outstanding progress. Morrell

American

All

Tires:

&

f

\

.

is

1961

for

Outlook

$1.60.

favorable.-

er

Rubber
four

Wilson & Co.

The

dividend and

long term situation.

sound

a

vending

to

merchandise. Aldens (51),

Hog

an

(20)

quality
Sniegel
(42), W. T. Grant (29) and Korvette. (34) are my suggestions for
purchase. Macy (43) could very
purchases

of

,

1960 net of

craft. Estimate higher

suf¬
and

Retail Trade: This industry is
benefiting from the shift to in¬
creased expenditures by consum¬
ers
for soft goods and their up¬

efficiency, diversifica¬
population growth make
especially bright.

Metals:

improving they are
to
cover
dividends,

in

v

the 1961 outlook

(30) is

earnings

(38), Southern Pacific
(44).

grading

-

diversification in missiles and air¬

place

While

Southern Railway

and

5%.

Leading

(43):

coun¬

taking

(27), Northern Pacific (41),
Norfolk & Western
(97), Nickel

Packing: Major strides in

Meat

strong

net

machine maker in the U., S., with

cific

price dips.

operating

action
stocks.

1960

$1.50-$1.60
in
1961,
items will be in¬

and

$1.25

Estimate

S.

U.

when many new
troduced.
Yields

,

and

in

are

of these stocks have large
holdings and are down to
low enough levels to attract long
term
buying
interest.
Favored
stocks in this group at Union Pa¬

5.9%, Chicago Pneumatic
(26), which serves the air¬

uary

the

of

land

field, such as Warner Swasey
(27) which has substantially in¬

minor

sold

and lighter fluid

of flints

jority

ap¬

many

this

yields

not

ficient

from

backlog

already

Yield 4.4%.

(12): Produces the ma¬

Ronson

many

negotiations

Merger

rail

are

Machine Tool: Benefits to result

order

have

Shipbuilding

News

Dividends since 1931.

Vendo

some

ter-trend
the

its

lead¬

warranted.

the stocks I favor in this cate¬

creased

issues

these

since

4.5%.

Yield

(45): A major U. S. shipbuilder.
Estimate 1960 net close to $4.81
of
1959.
Sole
capitalization
is
common
stock.
Strong finances.

preciated considerably, new pur¬
chases for the longer term appear

Foods

Con¬
tinental Baking (43), Hunt Foods
(38), General Mills (28), Pillsbury (41) and Beatrice Foods (51)
Foods

Although stocks of

Dividends

field.

drug

Newport

in¬
en¬

Rhinehart & Winston (50),
Collier
(36),
Western
Publishing (68), Random House
(34) and Prentice Hall (40) among
of

etc. Foreign markets
expanding. Recently entered

1895.

Crowell

others.

Pro¬
soap,

toilet goods,
are

Holt,

Earn¬

nearly 11%. This, plus better
living standards and population

(40), Fairmont

Colgate-Palmolive
(31):
diversified lines
of

(37),

of

are,

duces

the

attractiveness

tne

this year. Finances
Yield 3.4%.

$3

strong.

ing publishing companies such as:

rose

vestments:

of

earn¬

population growth and the
creasing need for textbooks

industry.

since 1951 and estimate record net

Publishing: A steady uptrend in

/

continue.

a

the

in

manufacturer.

Sales have increased consecutively

ings importantly.

of decline and I would expect

price

developed

West Virginia Pulp & Paper

better acting

whole

latter has

which should benefit future

pur¬

present time.

One of the

the

Largest,"

Consolidated Cigar (38):

com¬

stretchable paper jointly with

new

Financial

issues:'

Miscellaneous individual

(61).

,

of Attention

Worthy

-

the

Among

Cluett Peabody
strictly a paper

not

pany,

(69),
Great
(29), James
Talcott
(63), Seaboard Finance
(22), Beneficial Finance (32) and
General Acceptance
(18) appear

like

competition.

and

(32)

Credit

Commercial

Western

paper

I prefer St. Regis Paper
(33), KVP Sutherland (28), Inter-,
national Paper (97),. Crown Zellerbach (48), Union Bag & Paper

levels for the period ahead. Stocks
such
as
Pacific
Finance
(50),

purchase:

(25) is a.good income
present levels.

at

papers

earnings

debt is expect¬
growing and in¬

consumer

able

can

(76) and Lorillard (38).'
Reynolds (90) is pretty high but:
should
be held.
U.
S., Tobacco-

de¬

groups

craft, auto, steel and other indus¬
tries, )ias strong finances and pro¬
vides a generous 4.6% yield. ExCell-O (35), Sunstrand (19) and
Cincinnati Milling (36) also rep¬
resent
attractive
purchases
on

Administration takes over in Jan¬

well

are

laDor costs are being cut
the
industry's" long
term

over,

attract

and

Morris

However,

foreign

Tool

probable increase- of
lVz%' or about $3 billion, in de¬
fense spending when the Kennedy

stocks

million

34

characteristics of this industry and

Richardson & Merrill (74),
Pennsalt
(28) and Interchemical
(35).
Defense: A

the

exceed

growth outlook is excellent. More¬

companies

year-to-year

earnings

yields make tnis group espe¬
cially attractive for investment
purposes. At present prices favor:
American
Tobacco
(60), Philip'

is one of the few
which,
outside
of
the
newsprint segment, does not face

Finance

+

Steady

in

increases

unlikely that
shipments this

seems

paper

and

'

Tobacco:

present

should experience steady earnings
in 1961. Because of the defensive

ternational Minerals & Chemicals

(33),

(52) on
levels.

flated,

tjae costs,

they never are because

at

produced in 1959.

many

(33), General
Instruments
(39), Litton Indus¬
tries (84) and Fairchild Camera
(147).
*

growth, makes selected companies
in
the
industry outstanding in¬

(54),

sum

values

Armco

of

have

problem
they are

and

McLouin Steel (36),
(64) and Republic Steel
minor dips from present

(33),

tive

It

will

year

preferences

(49), National Gyp¬
U. S. Plywood (46),
Caterpillar Tractor (29), and the
cement companies, such as Penncific Plywood

this

total paper tonnage

ings for the third quarter of 1960

range

statistical

Paper:

one

favor purchase of
Johns-Manville (54), Georgia Pa¬

Longer

Oil
to

appear

City

buy U. S, Steel (72), Granite
Steel

levels.

Elec¬

automation.

(45)

thoroughly

good

the

tronics is the nation's number

Standard

and

discounted

-

quite

missiles, defense spending
growing
emphasis
on

ment,
and

(o0)

California
over

from in¬
develop¬

and

(53). Although the foreign oil
is still unfavorable, Gulf

picture

industry

directly

with

faced

.

and groups.

Another

Finance:

minium, Ltd. (30).

on

rather think that we will have an¬
other

than moderate

more

price appreciation, but on a long
term basis, recommend purchase
of Reynolds Metal (40) and Alu¬

the
average, J

ahead

further

a

attractive for

that

pros¬

no

price increase, either in
Europe or the U. S. Long range
they have excellent prospects. At
the present time, the group selling
at about 20 times earnings is un¬
pects of

Elecironic:

creased

still soft with

are

on

(56), Virginia Electric Power
(48), Orange & Roculand
(35),
(35) and for
income, Niagara Mohawk (38).

Issues Currently Attractive
Continued from page 23

Oil

Atlantic City Electric

Outlook for Stock Market-

Steels: As in many

,

supplement

favorable

long

sales-earnings

present, steel shipments and

realize

possible

in

are

on

a

new

month-to-month

all of the

From

that

subject

to

the

great

above

you

can

market

is

still

selectivity.

the next several months.

in

with

and some other groups

However,
only 10 to 12 million tons
hand, there could be a rapid

scramble for steel

some

time next

Steel stocks have been de¬

pressed

1961.

Conclusion

stated

year.

1960

goods

basis, and I do not look for any
sharp increase in steel output for

on

for

estimated at $61 millon and $1.60
with increase to $67 million and

$1.75-$2.00

orders

company's
outlook.

Heyden-Newport Chemical (21):

Higher

other heavy
industries, there
has been a sharp inventory cor¬
rection in the steel industry. At
durable

term

in price and

many

have

discounted the steel operating ra¬
tio of 50%. Would be inclined to

many
a

bear market for several years

going
riod.
and

be

As

previously in this article,
groups of stocks have been
have been

through
The

Mr.

a
prosperous pe¬
institutional
adviser,

Average

Investor

must

willing to change his point of
view quickly. Assuming the mar¬
ket
moves
in
a
relatively re-

-

Volume

strained

trading

next

six

state

of

Number 6010

192

for

range

CORNER

punches, keep his opinions
and
subject to change as

time

Sometimes

passes.

reach

groups

popular
should

be

This

by JOHN

Your

happened

other

a

of

groups

again.
astute

very

stocks.

In

the

and

It

Recently

will

words

successful

salesmen

in¬

records

vestment manager, "The most upto-date information is the action

has

of

,

been

that

do

called

some

not

to

security

keep

their

prospects'

accurate

customers'

security

and

holdings.

If

We improve
by studying this mar¬
action—by long term action

anything is basic to success in the
retailing of investment securities

wise—but still by mar¬
action.
We don't buy stocks

know what his customers

of the market itself.
results

our

ket
if

it

attention

my

of

we

ket

it

are

just because

is

that

should

that.

the

know

salesman
much

When I
if

investments,

prospect

tions

for

has
of

National

been

and

discuss
it
and
changes.
They
suggestions
that
are
in

offer

keeping with the client's investment objectives.
They discover a
into

situation

that fits
customer's list and they of¬

growth

good
a

Sometimes

fer it.

his

as

tem¬

this business

did

that

call

a

not

on

a

return

purchase

millions

with

of

ents and

that

events

by cli¬

prospects and there is

chain

never-ending

Think

the

advantage to the

the

of

But

in

or

of

back

to

came

each

person

regardless

salesman

salesman

this, if
the

a

office

if

this

friend and advisor who

a

confidence

his

of

has the

customer.

The

customer knows the salesman will

a

not

making a personal call on
prospective client and he didn't

at least have

vestment

curities

idea of his in¬

some

objectives, and the

he

that

owned,

Corp. public relations account at

marked failure

Doremus for the past 12 years.

heard

and

se¬

call

the

was

salesman

about it.

advise

Vacudyne Assoc.

Can

relies

his

on

VALID

a

salesman

it,

so

he

Unless

know

what

in¬

.Common Marketed

mend any

Public

you

stock of

common

Associates,
prospectus,

Inc.

via

at

price

a

What

Nov,

of

books

H.

S.

B.

closed.

Simmons

N. Rubin

&

Co., Inc.

.

Net

the

proceeds

shares

will

repayment

of

machinery
search

and

additional

be

the

sale

used

for

of

the

of

and
equipment;
re¬
development; and for
working capital. Bal¬

general funds of the

entertainment

types,

at

wholesale

laboratories
The

and

of

com¬

is

company

also

in

,

the

months

seven

ended

amounted

common

a

more

basket full

lative

are

tomorrow.
salesmen

relying

too

issues,

in

specu¬

in¬

many

representative

of

never

get

time

a

into difficulties the first

mild recession

These shares

come

comes

along.

to market at

price, the public

clamor

for

the small issues forces the market

porarily

H. Hentz Partner

is

111.—On Jan.

Silverstein

will

be

1,

office, 141

admitted

of the firm's Chicago
West Jackson Blvd.

affiliated

with

Ed¬

Co., Bon Durant

is

owns

on

bolster
or

later

been

this

rely¬

type

their

of

income

going to find

bit rougher than it has

a

the past few years,
speculative enthusiasm

of

sometimes last
then there is

for

several

years,

always the inevitable
of

business

and

the

of

and

what

never

at

salesman

his

customer

loss

a

for

ideas

for business.
From a practical
standpoint, think of the asset you,
build for yourself when you know
or

who

millions

owns

worth
are,

these

of

what
with

This is the

them.

who

dollars

of

investments, what they

what they cost, and
people want to do

there

are

call

opportunity, but
security salesmen

many

investors

on

there

know

is

all

who

that

They

don't

the

salesman

who

is

hasn't built his reputation on such
unstable foundation.
-

But

Joins Burbank Co.

&

Company,




Inc.,

,

contrast

such

precarious

business with that of the salesman
who keeps accurate records of his

BOSTON, Mass.—Joseph D. Farragher. has joined the staff of
Street.

Real Salesman Advises

;

80

customer's

investments.

He

con¬

stantly reviews these holdings and
keeps in touch with his clients.
Some

salesmen

compile

regular

capital

and

money

The

Sade

&

to

on

accounts

group

Corp's

stock

mon

making these commit¬

are

attracted

still

are

in

maturities

longest

the

to

(par

A

class

at

600)

com¬

$5

per

The financial

ganized

which

was

community is not

for

balance

the

the

of

year-end exchanges will continue
to

made

be

of

1960.

right up to the
However,
with

Christmas period
and

the

New

end
the

out of the way,

Year

a

Jan.

on

retail

nancing via small loans, and has
in addition, an
installment con¬
tract division. Its principal offices
located

are

at

16

E.

Pleasant

Street, Baltimore, Md.
The

net proceeds

are

estimated

at

$260,000, of which the major
portion will be used to expand
the NAC Charge Plan Division,
the balance

and

working
pansion.
The
pany

capital

will

for

be

added

further

to

ex¬

of

the

there will be more than a
amount of attention fo¬

way,

the action which will be

on

taken

the

by

Federal

Reserve

Banks to counteract the usual re¬

flow

the completion of the
will consist of 600,000
com¬

stock, of which 60,000 shares
will be outstanding; 250,000 shares
mon

class

B

authorized,

shares

and

a

which

those

is

longer than

maturity
that

the Central Banks have been

buy¬
ing in their recent operations that
have shown a very slight variance
from the "bills only" program. "«
demand

steady

for

continues

selected

be

to

intermediate

term

issues, especially those that
selling at deep discounts. Iri
addition, there is attraction for
are

certain

investors

1965-70,

1966-71

cause

it

issues

are

is

in

the

2M>s

due

1967-72

and

be¬

indicated

that

these

looked

upon as likely
be in any future "forward re¬
funding" venture of the Treasury.

Interest in World Bank Bonds
In

spite

which

of

the

better

available

are

yields

in

corporate
tax-exempt, there is a grow¬
amount of money finding its

and

of

3V2S of 1990 and the 3V2S of 1998.
In

addition,

some

of

have

been

interested

bond

with

a

yield

those
in

that

that

good

a

is

satis¬

factory have been buyers of
tain

of

The

5%

the

World

due

World Bank

1985

bonds

Bank

is

one

cer¬

issues.
of

that these

the

in¬

stitutions have been interested in

acquiring.

L. A.

Huey With
Copley & Co.
(Special to The Financial Chronicle)

has

the

Mr.

money

influence

marked

a

that

powers

be

what

on

this

about

do

development in the early days of

DENVER,

Colo. — Lee A. Huey
associated with Cop¬

become

and Company, 1600 Ogden.
Huey was formerly a princi¬
pal of L. A. Huey Co. of Denver

ley

and

Omaha.

v1961.

ness

most

credit

which

order

take

to

trade.

(Special to The Financial Chronicle)

PAUL, Minn.—John R. Boyd

in

has

become

created

of the holiday

other

hand, if the
pattern is to

economic

persist for

ST.

was

care

the

On

current

Henderson-W eidenborner

surplus money

of the

and

John R. Boyd With

likely be an aggressive

absorption

period

a

in

the

associated with

derson-Weidenborner

National

Bank

Co.,

Hen-

First

Building.

5

New

there will quite likely be
slower mopping up of the excess

Year,
a

and
credit that
into
existence by

money

brought

Christmas

Specialists in

was

the

needs.

U. S. GOVERNMENT
A

new

of

New

Administration

Administration

will

be

taking over in Washington right
after the beginning of 1961, and
it

evident

is

there

that

is

not

a

whole-hearted agreement between
some
of the actions which have

and

federal agency

Securities

been taken by

the powers that be
people who will assume
the running of the Government. It
will
be
interesting to see how
and

the

these

of

some

reconciled,

differences

especially

from

are

the

standpoint of whether or not the
policy of "bills only" will come
under more close scrutiny with
the new Governmental group in

will

be

of

which

outstand¬

However, it is rather clear that
in

in

past changes in political parties
Washington >there' has
been

pretty much of an agreeable and
working
pact
eventually

an

aggregate of $502,530

subordinated
debentures.

long-term

notes

Aubrey G. Lanston
8c Co.
INCORPORATED

close

carved out between those in pow¬
er

and

all

There is
will

ing; and
of

ernment securities with

and credit
holiday season.
It is
evident that
the expected
course of business is going to have
turn

which follows the

com¬

upon

210,000

certain

among

control.

capitalization

offering

of

opinions

is

well

getting under

passing
cused

or¬

13, 1953, oper¬
charge account plan
known as the "NAC Charge Plan:"
It is also engaged in consumer fi¬
ates

what

into the long-term Treasury
particularly the 3s of 1995, the

It is evident that the usual

Advent
company,

dictate

nevertheless

way

Monetary Policy

Coming

share.
The

is

market
specialists
that
greater efforts will be made to
stimulate the attraction of Gov¬

ing

the list.

activity will be moving away
from the defensive pattern, there

Co.,

a

and the Treasury Trust
and state pension funds

If the indications are that busi¬

Washington, D. C.
that publicly of¬
on Nov. 30, 60,000 shares of
Charge Plan & Northern

headed

buying of selected Govern¬
bonds continues

go

will

there

money

long-term

in

NAC Charge Plan
Class A Sold

business

done,

defined

to

ment

will

wise

an

the

by

markets.

took

gold

never

the time to ask.

during

Waves

A

(Special to The Financial Chronicle)

Burbank

work.
knows

authorized shares of class A

Building.

Federal

have

Time is run¬
reckoning.
ning out for this type of business

(Special to The Financial Chronicle)

become

been

picnic.

who

to

sooner

the road

day

PUEBLO, Colo.—Allen K. Taylor
has

are

a

heavily

contraction

With Edward D. Jones

ward D. Jones &

too

business

partnership in Hentz & Co. He
manager

number of "free riders"

a

bit of

a

Salesmen

Wil¬

file,

security

A

your
who

a

...

ing

keep

reference

Acceptance

low

your

missing the main objective of

are

ture, and there will be

have

■to

ready

lists
them in a
or
special

up

record book for this purpose, you

NAC

Silverstein to Be

liam

holdings and

.

stock..

fully

into

put

concerned

build

you

fered

above the offering price and tem¬

CHICAGO,

Unless
of

others will be absorbed in the fu¬

that

see

operation. What
takes place will be watched care¬

year.

had public financing before. Some
of these companies will
survive,

many

to

his

ultra

companies that have

the type of action which

come

the monetary authorities will

the

on

accounts.

plethora of

a

this

with

and

"them thar hills."

who

much

commission

stock

small

'

for

and

Year

over

can

issues" to increase their

new

will

to $258,518.

Upon completion of the current
financing,
capitalization
of
the
company
will consist of 500,000
shares of

there

been

stances

through its whollysubsidiary, Transleteronic,

July 31, 1960, combined sales of
Vacudyne and Transleteronic

supply

We have had

t

For

-

fresh

income and

tubes

owned

Inc.

peddler with

a

"hot

the manufacture of electronic and
neon

nothing

stocks

have

users.

engaged

you are

Then

a

retailers,

industrial

and

dark

hoping that you will
dispose of them so that you can
go back to your office and obtain

industrial

to

you

the

tell

than

The company is engaged in the
sale of electronic
tubes, of both
the

and

in

the

possibilities,

pany.
.

not,

taining maximum diversification,
spread the risk, increase income,,
upgrade quality, enhance growth

the

loans; purchase

is

that you want to assist him in ob¬

of the proceeds will be added

ance

to

from

or

idea

an

he

speculative

many

at

when

man

stocks now?" Unless you approach
each account from the viewpoint

the

were

a

whether

him to buy some PDQ
market, and he says, "I've
got too many speculative common

underwriters.
:

stocks

and

Kass,
Inc. and

Co.,

too

at

Kenneth

&

to

say

know

just grab

per

share has been oversubscribed and
the

you

don't

common

28

$1

do

an

how can you recom¬
additional investments?

holding

Vacudyne

a

will

sharply after the turn

New

last

years.

you

lessen

the

looking for very much in the way
of new developments as far as the
money and
capital markets are

that

of the

of

credit

and

money

customer

the

shares

will

of

use

watch

to

of

The

The

This eliminates all pres¬

so.

salesman

200,000

great deal of the attention at this

along in 1961, because the pattern

time.

his securities when he is too busy

between

of

Governments, with the longer
Treasury bills evidently getting a

ments

is

REASON for considering

salesmanship, haphazard of¬
ferings, and creates a relationship

Recommend?

the^ short-

of

there

unless

folio

to do

You

continues

into

intermediate maturities

and

which

vestor owns,

offering

term

change in the port¬

a

sure

How

buyers

bring

approach is used by both parties

after

Chemical

to

market

stock

common

concerned. The salesman becomes

telephone

and

the

year since yearor
tax-switches
being made. On the other
the defensive tone of the

hand,
1

of

at

unusual

not

exchanges

fit

securities.

client

day.

CHIPPENDALE, JR.

still

are

a

changing
affect all

of

constantly

end

dollars

worth of securities owned

accepted

was

or

by

Corp., Roy F. Co^pedge,
Jr., President, has announced.
•'
Mr.
Brown, formerly a Vice
President of Doremus & Co., ad¬
vertising
and, public
relations
agency, had worked on the Na¬
Distillers

make

is

market

this time

they

sometimes

by the sales manager. We used to
make reports on every call either

ap¬

public rela¬
Distillers and

Chemical

tional

in

he

order

and

*

made

and

an

about

started

salesman

a

with

Brown

weakness

ment

shows

touch

estate

as
possible
perament.
"

Brown Named by
National Distillers
director

situation

a

they suggest a
sale of items already
owned.
They are never at a loss
for business because they are in

much

L.

than

If

customers.

real

"An address by Mr. Ward before the
Day Homecoming for Commerce
Alumni,
New
York
University,
New
York City, Dec. 3, 1960.
Dean's

pointed

He

own.

He should also be cognizant
investor's objectives invest-

an

t.

The backing and filling operation
that is going on in the Govern¬

appraisals of their client's securi¬
ties. They work closely with their

mentwise, his family situation, his
tax bracket, his life insurance and

they look cheap

of

Henry

should

more

.

Inventory

last year with the electronics and

happen

25

GOVERNMENTS

many

very

sold.

Our Reporter on

BY JOHN DUTTON

over-priced, overquickly and

an

area

-

(2301)

SECURITY SALESMAN'S

because of the
business
and
political
the present day fore-

taster must be ready to give with
the

fluid

The Commercial and Financial Chronicle

% *.

the

months,

changes,

.

no

agencies.
to believe this

Government
reason

not be the

case

Even though there
l.«+"

on

is no agree¬
the type of <4open mar.i.ViinU

iirill

ho

r>nm

BROAD

i

n

STREET

NEW YORK
☆

this time.

"

ment

20

CHICAGO

☆

☆

BOSTON

26

Chronicle-\

The Commercial and Financial

(2302)

AS WE SEE IT

.
,

teeth among the farmers of the nation—and possibly more
than that at next election time—-if more of the taxpayers'

.

•-

-

various

influential members

of

t

far -been able to

,

..

charters

—

Role in

his

situation

similar

designate have had a good deal to say about a balanced
budget as a "normal phenomenon."

tanker.

a

recession

political opportunity for what is regarded as popular
spending. But that would be but a temporary surcease
from sorrow at best, and reckless fiscal policy on that or
any other account might well not prove at all convincing
or
tranquilizing to people abroad who now hold large
amounts of short-term investments in this country. The
a

are

hard facts when it

comes

that

it

indicates

made

was

;

t

.

day,

nature of the Soviet sales effort.
With respect to

the current sit-

rouehl

fSJJSSL

uation, therefore, we must recog-

shouting

nize the fact that the Soviets have

remarkable

made

to such matters

in

strides

put

for

mil1inn

"

and

million

distance

of- TT
of
U.

ratprate

in-

26

S
b.

harrpl<5

S
of

the

nrodurtion
production
a

been

these. And

istration

can

they

are

. t

afford to overlook

not

evade.

to

or

In

point of fact,

international financial position
is anomalous in several respects—as a result of past poli¬
cies which can hardly be said to conform to Hoyle. A
very large outflow of gold over an extended period has
not been permitted to reflect itself in the money 'and in¬
vestment markets of the country. Here we are in effect
borrowing at short-term and lending (or investing) at
long-term abroad at the same time that questions have
been raised for a good while past about danger of a sudden
and large withdrawal of those short-term loans from
foreigners and repeatedly expressed doubts about the
wisdom of some of our long-term advances or investments
in various parts of the world. President Eisenhower has of
late been tackling one aspect of this undesirable position
we now
occupy vis-a-vis the remainder of the world in
terms of finance, but evidently much more will be ret
quired to right the situation, and most of the apparent
ideas of the Democratic leaders appear to be quite con¬
trary to the needs of such a situation.
'
our

Another

elect

of

the hard realities

faces is of

which

the

nriSnt

dinavia.

present

rrKl^

Thus,

6 7
t>./

some

*

:

now

the labor unions which have been

almost

be

months?

President-elect

ever

to




to

years

production

will un-

^.0 conclude that the Soviet bloc
wouid have difficulty increasing
its exports of crude oil and prod-

the next few years by
than 50% above the present
rate of about 400,000 barrels per
day. . ./
- This estimate of 600,000 barrels
per day as the present estimated
limit oh Soviet petroleum exports
in the next few years will be subject to a sharp upward revision in
1964 upon the completion of the
large new COMEKON pipeline
linking the Volga/Ural producing
area with Eastern Europe.
; ~
'
This line is being built with 40-

diameter

pipe

and

pumps,

of

and it is estimatedThat its event-

oil

crude

.

.

A number of facthat the ability of

This, terminal will he only 275
miles by sea from Stockholm, 350
mdes from Copenhagen and only

suggest

the

these

answer

World.

tors

the

outside

one

can

...

inch

Soviet bloc to export its oil,

Free

no

they

years' time, it appears reasonable

in

increases

Although

doubtedly master them in several

alone.

24 creases in the quantities of crude (formerly Memel), in what used
the two oil and products exported to the to.e Eitnuarua,
on tne Baltic,

tentative

conclu-

Much

a little farther from. Hamburg. ,
A second branch of the COMEKON pipeline will go to Schwedt
°n the Oder River, the East. German-Polish border, some 50 miles
northeast of Berlin.
^
\

of

the

new

Russian

■

pro-

.

■

to

of

selves-,-. and

the

the

Soviets

^

them-

requirements

the Soviet domestic economies.
At

the

'include-'discussions of the possibility of building { a pipeline1 to
connect Italy with the southern
in importance the oil fields of the branch of the new Soviet :line.
Caucasus which have for so many The distance through Austria from
years been the primary source of-*he Italian border to Bratislava is.
petroleum for the Russian econ- °nfy 200 miles, and it is but 275

for that year, or about 80%
of
of their total production. Thus, these,
new fields will vastly overshadow
.

present

time, and for
future, crude oil
production capacity will not be a
limiting factor on the ability of
the Soviet bloc to export increasing quantities to the Free World.

the

,

foreseeable

Since the end of World

exploration

work

has

,

-

b

fields

Of particular

importance has been
discovery of a complex of rich

fields
Ural

in

the

area

Mountains

between

and

the

the

Volga

River, centered on the city of
Kuibyshev, which is about 550
miles

southeast

of

Moscow

and

Caspian Sea.

Development of these
has

new

fields

not

lagged behind, and vast
crude oil production
capacity are- programmed \ under

increases in

the current Seven Year?Plan;
1

.

f

From

'

'

•-

crude oil production,

of
1^48^000 barrels per day - in 1957,
".the Russians claim4o have upped
the figure to 2,567,000 hy 1959—
an increase of almost 32 % In two
a

-

.

years.

Planned

this year is

for
2,863,000 barrels per
'

and

through^ .Yugoslavm

production

.

(

Domestic Oil Needs

^

;

By about 1965,: therefore, thie
limitations .op the Soviets' ability
to export petroleurti will largely
be. confined to the demands • of
their own domestic economics on

.time there are np direct pipelines
from the new fields to the Black
Sea or ■ the Baltic,- and: none is
scheduled to be completed before
1964.
"
"
V.
the petroleum

the discovery of many new :
in various parts of Russia.

seen

-

.

Sea ports and almost 1,000 miles
Ibe Baltic. At. the present

e e n

pressed forward intensively in the
Recent years have

■Soviet Union.

the

^nes

;
'
" 7—.*
These new producing fields are

omy.

Hungary fromi Italy to Budapest.
War.-II;mahout 800 miles . from the Black s 7 Unknown Factor of USSR!s \

about 425 miles due north of the

it. There are.' various and not infrequently
marked differences in policies among the nations, but

culties.

.

Union

concerning
and nature

statements
.

definitely nd time for another New. Deal, or
growth of the old New Deal, which we still have in
abundance already with us. There are
very real national
and world problems for which Solutions must be found
where possible, but.New Dealish ideas and
programs cer¬
tainly wiU not solve- them. .Neither will various .controls.
now sometimes vaguely, and for the
most'part; rather,
timid^ suggested. The times are out of joint, as. the poet
expresses

-

-

facing

.

-

.

'

are

completion of the present Seven hear Vienna, and to Budapest in
Year
Plan
in
1965, production Hungary,.v
:
from the Volga/Urals
area will
- Signor yMattei, . the
head of
years,' and, second, the probable account
for
approximately
3.8 E.N.I., the Italian Government oil
intentions;of the Soviet bloc coun- million, barrels per • day of the entity, has recently; suggested that
tries, as best they can be meas- total Russian production of 4,8 future negotiations for the purured by economic-factors, public million barrels
per day planned chase of Soviet oil'for Italy should

a

,

; '

engage in the export of petroleum
in the Free World in the next few

permit himself to

This is

for

.

coming

the

capabilities of the Soviet bloc

newly elected Chief
general direction of
Deal leadership. Of all this Mr.
Kennedy is doubtless
enough aware. But it does not make his official life
reason.

;

that may be expected in the near

Soviet

...

rather definite limit upon what the
Executive will be able to do in the

easier for that

-

.

spects this latter fact is about the most encouraging out-:
come of the
voting this autumn. It seepris to place some
sort of hurdle before some of the most
irresponsible of our
public officials and political leaders—and even to place a

appear

:

transportation diffi-

the
probable duction will come from several of
scope
of the Soviet the newer fields located in the
bloc's activities in the petroleum area centered on Kuibyshev, be- ;
The third - a n d southernmost
markets of the Free World in the tween the Volga River and the branch of; this line will have three
coming years.
/.
* Ural
Mountains, which I -men- t^rminais,- Carrying- Russian-crude
These conclusions are best con- tioned
previously.
oil to Prague, to Bratislava on the
sidered
in
terms
of, first, the
it is estimated that with the Czechoslovakian-Austrian
border

of the very measures he now seems to feel that he is
under mandate to get to the statute books. In most re¬

well

Soviet

tremendous

Soviet

Is the

in

And how about

draw certain

sions

some

New

the

production figures

questions with any degree of cer- at least over the short term, will
tainty.
fall far short of its ability to proHowever, it is possible for us duce it.
;
• y:'"'

commit¬

forget that this same election which selected him for the
country's most coveted post also sent back to Washington
legislators who were able to form a coalition to defeat

in

ual capacity will be inexcess of
WW £arreJf p®r fa7*
'
:
future should not, however,; be
°ne :pranch of this line will
equated with comparable in- nave its terminal at Klaipeda

Future

after that?

course,
Soviet
bloc

Those Courageous Legislators
the

in

Of

'

can

tte

increase

100%,

repeated

years

as somewhat
vague, but nonetheless positive
campaign promises can make him. All these things he will
not for a.moment ,be_permitted to
forget in the days ahead
--although a vigorous and unexpected revival of business
might take off some of the pressures—but by no means all

Nor

The

mj-

for

exports in the past two

ted to them

of them.

tr»

What then of the future?

for a long while past and will not
quieted by soft words or vague assurances. Anti-reces¬
sion programs of one sort or another—all
expensive—have
been advocated and are now being advocated
by vocal
groups, among them these same labor organizations, and
as

for

these

phenomenon

r,rrto-

be

is

if

of

to look upon this fact as

passing

^robafeiiities

clamoring. for certain

cases

are

would not

we

.

.

will take up later in my talk, the We must assume, therefore, that
marketing tactics being employed the Soviet's ability to bring oil up
by the Soviets and the long-term from below ground will be ample
supply contracts recently entered to support any kind of export
into by them indicate that their program they wish to undertake
effort to engage in the interna- in the years to come.
tional oil business is no passing
Ability to Produce vs. Export

welfare expenditures

the President-elect himself in several

pur-

more

judgment,

ii

Many "Western observers 'feel
resulting that the Soviets, who are capable
from a temporary imbalance in oilmen, will not only equal but
the Soviet economy and likely to substantially
exceed the target
disappear in a sort time. In addi- figures for crude oil production
tion to economic factors which I fixed under the Seven Year Plan,

a

also

ucts during

importer from the Soviet Union.

a

own

,

the. Soviets
Soviets

tional crude oil production, but
aach
those countries is a net

be wise

political nature. Whatever may be
personal views, he was greatly aided in a very
close election by certain groups which now demand their
pound of flesh, and are never bashful about pressing their
demands. Probably the most conspicuous
among these are

his

-

rfhe

serious

The satellites of Eastern Europe

In my

President¬

have

reports that the So-

Italy> the Netherlands, and Scan-

an<* Communist China have addi-

a

All

and Canada.

.

those

negotiating for the

5% of total Free World de-

some

An Anomalous Position

trade
two

recent

» Qef agdditionfi tankersP

creasing their petroleum exports
recent years and today enjoy
an
export position to the Free
World of 400,000 barrels per day,

in

facts which the incoming Admin¬

new

been reports

there

And

recent

mand outside of the United States

as

the

under

countries

Hav

®

There have

agreement : between

within
of
oi

another

the

yards

^je current Seven Year Plan in
1965 *
^ million barrels a day,

the

Nether¬

the

in

acquire

they, have been negotiating
purchase of additional
tankers to be built in Japanese

a

will

,

to

that

figure which, if achieved,
the Soviet Union on a
Unspecified quantity of 31 deg.
gravity Black Sea crude oil at a par with Venezuela as the world's
price of $1.90 per barrel delivered sec™d largest producer.
to Bayonne, N. J.
The company
The target figure for Russian
rejected the offer, but the fact production by the completion of
Continued from page 11

upon us, which could give an excuse for a budget quite
out of balance at least for the time being, and accordingly

facts of life

obtain sufficient
their needs.,-«.:

In. addition, the Soviets recently
purchased- a
39,000-ton tanker
in* Japan for a buyer who
was unable to take- delivery, and
they have taken advantage of a

lands

something in the nature of

to cover

built

party. Both the President-elect and his Budget Director-

Now there is

■<

found, and less-father tljahi;
government interference with private
ai.ijrs/
be the basis for common procedures; The new President -Wmeccutrerit' depressed state; of
will have plenty to do and all the worries he can stand,
the - charter market they have sq

is not coming their way. If the new Secretary of
Defense does .not demand and get more from the Budget
Director, or at least from Congress, than has been spent
in recent years by
the^ Eisenhower Administration, then
the public has misread much that has been said by the
and

"

more

money

President-elect

Thursday; December1.8,' 1960

modus operandi must be

some

'<

Continued from page 1

.

.

Some crude oil could be shipped These

"

resources available,
demands
are,
of course,

by ra^ or by the Volga-Don wholly under the control of the
Canal to the Black Sea, but ship- Soviet states and could be sharply
merit of any large volumes would limited iT it were decided 'to use
Pht a strain on the present Russian transportation system.

greafer_pefF0]reum .eXp0rts as a
of waging economic warA second limiting factor on the fare.
^7
/ v
'
)
ability of the Soviets to increase - No one on this side: of the Iron
their exports to the Free Worlu Is Curtain, can say for sure whether
their current shortage of tankers, the Soviets Intend to use their oil
In 195P the average tanker ton- reaources. hi uneconomic faShioh
nage engaged in trade between to-drive the private Companies-out
the-. Black*; Sea ports and -Free of foreign markets/;
*
;,
•.
l.
World amounted, to l,43&,0GQ.Ttons. .' ; Of course, Permier-Khrushchev,
-Of this total,; less, than : one--half^ hasc told \us -with respect rtQ^eco561,OOO tons^wak Soviet hlOc- flag'^ftidmici^*- competition^ -'arid* - foreign.
tonnage the remainder1 was;torif'trader wWe Will bury-you]^' - ^
:
hage chartered from the Free,?' 'There -' are reasons " to* believe;
World.
1
however, that the Soviet bloc at
means

.

.

.

Volume

the

6010

Number

192

present time is primarily in¬
in developing and ex¬

.

The Commercial and Financial Chronicle

.

.

of
by

and vast amounts

years

many

terested

capital which had been spent

panding its domestic economies. If

the

this

opment of industrial processes.

is

and their exports are
be used primarily as a

so,

to

going

in

West

research

devel¬

and

1932 French technicians built

In

of

acquiring needed pro¬ the first aluminum plant in the
duction goods, then economic con¬ Soviet Union at Volkhov, about 80
siderations may play a large part miles east of Leningrad.
This
in establishing the future scope of plant had an initial capacity of
Soviet petroleum exports.
11,000 tons per annum and was
Probably the single most im¬ comparable in design and effici¬
portant
economic
consideration ency with aluminum production
bearing upon the Soviets' inten¬ facilities in the Western countries
tions respecting exports of petro¬ at that time.
leum is the extent of the Soviet
Similar
examples
could
be
means

bloc's

ing

requirements

own

years.

in

com¬

found

in

other

Soviet's

■

-

However, on the subject of do¬
consumption of petroleum

industries

purchase

the

of

advanced

of

The group

who

of United States oil¬

recently spent

month

a

in Russia report that despite con¬
tinuous
efforts on their part to

gain some detailed information
concerning the Russians' plans for

The

acknowledged
by
Soviet
leaders on many occasions.

did so
United

Indeed, Mr.
Mikoyan
during his visit to the
States

two

Now,
had

years

of

to

the Russians
for their large-scale
of
industrial
goods
course,

pay

stable
In

address which I delivered

American Bar
attention

were

Union

know

is

to

source

an

dependent
ural

coal

on

as

an

more

petroleum and nat¬

Similar

of

transitions

oc¬

curred in this country many years

commodities,

and

oil,

including wheat

exported to Western

were

Europe.
the

Soviets

able

for

terms

of

those

were

few

a

by
consider¬

very

demand

in

.Europe

But it should be

days.

re¬

ern

Europe since World War II.

is

The

Russians

have

that

stated

percentage of their total fuel

those

to

reached

in 1965.

51%

•

absence of

detailed

more

figures, about all that

we

required

for

Soviet

A

at

use

has

recently

implied

that

tends to

maintain its present rate

the

Soviet

of

of

bloc

in¬

the

services

the

from

the

by

pro¬

and

West

had

middle

been

the

of

these exports dropped
sharply.
:

with the avowed intention of pro¬

in¬

to

and

speech delivered in Arabic

a

on

Oil

Export

Agency, Eugenii

"From 1930 to 1933, the Soviet's
of total imports of crude

States

products
19%.

1956

to

to Western Europe
In the four years from

it

1959,

4.4%.

only

was

the

and

his

In

share

was

the

to

United

States

with

busi¬

certain

leaders and with Under Sec¬

ness

retary of State Dillon, he made it
that

clear

the

Soviet

Union

was

hopeful of obtaining a great
technology, par¬
ticularly in the chemicals indus¬

Hence, there is no such thing as
dumping of Soviet crude in the
market to cause any harm to the

very

historical

try,

positions of other sell¬

ers.'

is

do

we

to

regain

-

As you

our

exporting
countries—the position which we
had during prewar years and we

begun

lost

be

among

because

tions.

."

.

of

-v..:

-

Soviet official is

esting for
•

with

trade

the

Soviets

a

leading

extremely inter¬

their

Mr.

Gourov's

Russian

intentions

reference

that may

piece

a

ture

.

Repeating Itself?

having partly recovered from the
violent upheavals and civil wars
1917,

followed

was

in the

the

revolution

process

of its

"great leap forward" from
the
of

most

industrially

trialization desired

backward

a

modern in¬

ogy

'for
the advanced technol¬

and industrial development of

Western

States.
able

by Stalin and

leaders, it was
the
Russians
to

necessary

Europe
In

and

-doing

to. avail

finance

should

not

be

taken

to

they have abandoned
their plans for acquiring this type
of goods from the West.
The

facts

are

that

in

agreements

for

arranged

has

1960,

trade

its

Soviet
import

the
to

synthetic plants, tire cord plants,
petrochemical plants, coal mining
and sorting machinery, a high-and
low-pressure polyethylene plant,
a

polypropylene

plant, automa¬
machines, electric calculators,
similar sophisticated produc¬

and

of

Soviet

draw upon

to

that

mean

own

accomplish the rapid indus¬
other

Government

nology

tion

one

Soviets

their purchases of advanced tech¬

of

dustrial state.

the

States

the

of

getting the United

Beers

good

exports

exports

the

was

fu¬

diamonds
De

of

going

at

group

market

prices.
Of

the Soviets

course,

they receive in the way of
disruptions of normal channels of
trade

But

caused
that

result

to the Soviets than the
of

needed

production goods

so,

the

they

themselves




United
.-were

of

the

selves
meet

in

another

they

manufacture them¬

sufficient

their

to

it

is

correct

to

quantities

to

of

the

Soviet

demand

Communist China.

in

recent

months have

ning into

been

run-

SaMnof<l?a?'

These

purchases

steel

purchases

must

be

paid

at

the

^

..

^

of

expense

,

_

.

°.ugb we must look
J-expor*s as
w

f pbi*?£.?

a1!' Jur an~
a* must be suppliedby^he prwate oil companies
tbe Frea World. No one, I
®

.

would

have

our

govern-

the

over

As

Under

Secretary

Dillon remarked

"When the Soviet Government
engages in economic assistance, it
the

uses

because

fnoKiJ+L
J handle such W0ldd
wblcb crude
able them to°u
e

■

„

,

Some years ago,

the government

m°p0?°iyK-!in ,UruglJay
J^cePted bids from the
for^supplies of crude oil
d by ANCAP ln Uru-

/VNrrAP

Russians:

mioxf

After

experiencing a great deal
difficulty with the high sulphur

of

and salt

viet
not

water content of the

crude

oils

which

equipped to

ANCAP

this

elude

the

The

way

Russians

Brazilians

p^^o^3?6

So-

were

properly,

worded its bid

a

to pre-

as

from
whn

bidding.
nir

arp

^

ently receiving
U

they

process

year

tenders in such

entire

is

com-

between the

econgovernment. We

the

an(j

its

there

5° h^ve,the have no wish to emulate Soviet
h3SL ydr<?7 policies of organization or be-

lentil

,r„

of

resources

economy,

omy

A

State

of

year or so ago:

■,

n

Tpvacf Thif 2ru+^ 01fS. m West plete identity
°f importance

c*

a

01}s offered

j

export have high sulphur and
salt water contents. They are not

-i

a

Soviet crude oil

^

havior. However, during times of
crisis

in

our
past, private enterhas formed an
effective
working partnership with govern-

prise

ment. We are now living in a
time 0f continuing crisis. We must
finci ways to forge a new working partnership to meet the challenge of
Risk

time."

our

taking, hard work, daring,

cou^a§e> imagination, research,
continuous improvements lnppera
g techniques and quality of

£roducts-these are the factors

*ba^ can be brought to bear by the
PrlYate companies in this neverendlng struggle. They are, of
the

course,
bave

factors

same

marked

the

which

amazing devel-

r

v,

k

Sfafota/itf'iten itfI
r

point.

*

r.

«

Russian

assume

that

share

.

.....

_

...

In addition, the oilmen

.

products

as

on

this

wel| as gide of the Iron curtain must be
^n recent careful constantly to promote the
complaints in recent elements of trust, confidence, and

of

complaints

weeks

respect which have been built up
over
long
years
of
reciprocal
trade among the countries of the
considerations will continue to be
unpleasant odor to come out of* Free World and which give to us
valid in the future, then we can
the exhaust pipes of automobiles an
intangible, but very real, adexpect .the Soviets to continue in which it was used—the result
vantage over the Marxists.
their
efforts
to
increase
their

tivated in substantial part by eco¬
nomic
considerations
and
those

petroleum

coming

export

position during

to their relations
oil-producing states.
We have very little knowledge
of the Russians' production costs.
But by its very nature as an arm
of the Soviet Government, with
no
royalties or taxes to pay and

damage

the

the

entire

available,

if

Soviet

ohne

change,

need

to sell oil at a loss in
gain needed foreign ex¬
for

or

I

am

While

Soviet
there
be

some

sure

hesitate to do
the

political

pur¬

would

they

not

seriousness

the

of

grave indeed,
also good reasons not to

overly pessimistic.
have

mentioned

already.

The

a

recent

the

relative

newcomer

Russian gashave

been

pattern

to

of

interna¬

gM

,™.l,

easoline thev

continued,
the

the

or

coming
Soviets

chases

of

even

years.

other

But

production

|c-es

our

government to

com-

gailin.

l.ss

do

get

is

eener-

*

'

.

do not

.u

■

•

their

view

relatively low gasoline output as
a
disadvantage.
There are only
about 3.5

of

some

million

Soviet

the

these

cars

and

so

long

SSS wli? IlTu7lh? iSSdln0-'
close of that war' and who found

today, and
operate on diesei

fuel.

following the seizure of the Suez
Canal, will rise to meet this new
and difficult Soviet challenge.
*A

any

no

large

way

Russians

the number of

primarily
interested in producing the heavier products used by industry. Of
course, if they should decide to
the

do so,

are

there is no doubt that they
improve their refineries so

as

I

goods

from

the

have

ChU^
16,

1960.

Shearson, Hammill Adds

tried

serious

to

nature

has

been

added

to

the

staff

of

shearson, Hammill & Co., 75 Federaj

street,

With Storz-Wachob-Bender
-

(Special ^ the financial chronicle)

^

OMAHA, Neb.—Joseph E. Haller
has become affiliated with Storz-

outline

of

(Special to The Financial Chronicle)

BOSTON, Mass.—Omer D. Labrie

and

Summary

pur¬

presented by Mr. Dean be-

intention of increasing

passenger cars allotted to consum-

their

paper

^feri,chaen
111., Nov.

With

the oil and prod-

ucts necessary to meet the crisis

trucks

Union

intensified in

continue

rpvipw

Ourselves that those polare properiy helping and

and transported

L

The Russians

ers,

Soviet

p0ijctes 0f
assure

"

Russians

in

number of

a

able^to de

fnr

mntirmnuslv

anri

with our chosen representatives

encouraging the efforts of the oil
industry to meet the Russian chalplamts recently about Russian ienge. It may be that new policies
gasoline failing to measure up are needed, or that policies approto the octane ratings claimed for
priate to the requirements of an¬
them by the Russians. These comother
day no longer meet the
plaints derive, in part at least, needs of an industry bearing the
from
the
shortcomings
of
the brunt of Soviet attack in an imRussian refining industry, which
portant phase of the Cold War.
is deficient by Western standards

in

so.

challenge is

are

Vnn Hpd

was

And> finally, we should carefniiv

,

necessary

to

company

There

Soviet leaders decided that it was

pose,

com-

economy

be,; to subsi¬
dize its operations, the Soviet Oil
Export Agency can undoubtedly
undersell any private company if
it wishes to do so. Indeed, if the

order

r<A lnIn result hpf
As a rp^Iiff of

hl!nP

Best Possible Price

In doing so, they may well be
willing to run the political risks
of upsetting the world price struc¬
ture
for
petroleum with conse¬

with

.

gasoline being
Cyprus caused an

in

phur crude.
States

Oil Prices

Cut

May

Get

quent

.

Russian

years.

U.S.S.R.
Or

.

Some

marketed

as
to step up
the quantity
quality of their gasoline.

recent

c

* ment take

good, old fashioned

some

place* established private com¬
panies.
This pattern may be

-

diameter

world

job of meeting
And last but not least, I am .Soviet bloc competition by becomhappy to report that the Soviets inS a state trader,

of
large
pipe in Italy and
West
Germany,
deep
drawing
steel
sheets, and special rolled
steel shapes.
-

-are

tbe

ours

think,

could

this

jn

be

bloc, including exports

tional oil markets seeking to dis¬

In

quirements of the Soviet states,

should look upon it as part and
parcel of the whole Marxist campaign to promote their interests

econ-

can

group

needs.

may
be rooted in certain economic rewe

U.S.S.R. Finds Sales Resistance

from

heavy price cuts may in part be
accounted for by their position as

or

the Soviet

the West.
If

current Soviet export drive

and although the

us,

unduly frightened.

But I do suggest that while the

are not

of

p

them

reason

to

course, propose that

we sh°uld be

llmlts

figures

acquisition

addition, they are acquiring
other goods from the West which
one

iG~

of

opmen^ °* tbe Free World's oil
industry through the years, and
pf tha inwhich have enabled it to meet and
fir
shipments received master the many other challenges
importance
f,?Hwn2dT?re .currently dlspuhng it has had in the past. ,
with the Russians on this

activities.
appears
at the
their

by

moment to be of lesser

I

prefer not to

I do not, of

,

?

Soviet production will be '
needed
for
consumption within

un¬

are

idends

tion goods.
In

.
j

27

posed by Soviet bloc exports
petroleum and its products.

pos-

,r<;asonable

precise

such that

is

tion

Rus¬

of

for

great nations to
To

in

succeed

.

At that time, the Soviet Union,

which

to

failure

the

omy

,

next four years.

organization

guay.

the

obtaining

in

their

Soviet

with

us.

Union

be in the process of rer

Is History

government,
unaccept¬

own

course,

Technology
But

history

of

peating itself today.

.

the

to

supply position to West-

recalls

which

our

They Still Want Our Chemical

to

Europe in the years 1930-1933,

ern

able to

to

by long-term credits

condition, of

a

have

would

reasons.

maintain, and possibly to increase,
their present supply position to
Western Europe.
' • ■
Even more interesting, however,
is

financed

granted by

■

by

number of

.of

Union

Soviet

the

place, it constitutes
announcement by the

public

indication

will be marketed through the

know, Mr. Mikoyan also

that any large-scale pur¬
of United States goods by

chases

the first

In

a

a

condi¬

war

,

statement

This

tin, they have
by the decisions

abide

to

Another

insisted

rightful position

tin

prices of

of

case

United States.

..

-"All

deal of advanced

through

the

Soviet petroleum exports are mo¬

Soviet bloc.

talks

world

of the World Tin Council.

moting trade between the United

Gourov, said:

and

may

came

the

on

doubtedly delighted with any5 'div¬

viet

In

exports

if possible.

available

aluminum.

In

off

yan

it

have
and

announcement that all

Lebanon, the Chairman of the So¬

petroleum

the

for

goods

basically to
the best

facil,ltles ai?d. ai?£~
S^fv.e to contain exthe
their petroleum

#
of

HnHncfThl
during the

greater sensitivity
influence
their
exports

recent

Oct. 20 of this year to the Arab
Petroleum
Congress
in
Beirut,

of

vninmoc^
vo umes

a

prices

1930's.

Russians'

the

Ir] Qhnlua

mar¬

all

in the

recall, I am sure,
that shortly before
the Soviets'
present Seven Year Plan was un¬
veiled at the 21st Congress of the
Communist Party
of the Soviet
Union in January, 1959, Mr. Miko¬

crease

world

interest

1930's,

Some

the

sians'

industral

of

breaking

ing accused of dumping by other
producers, the Soviets have re¬

in

was

exports to

Europe

when

And

curement

the

volumes,
highest
rate

by Soviet

Western

nearly

absolute

than

completed

home.

official

terms

greater

say

can

is that apparently a large amount
of new Soviet production will be

it

days, and the present rate of
exports to Italy alone is,

in

In the

what

Soviet

consumption accounted for by oil
and gas will rise from 24% in 1955

in

pear

beginning to ap¬
Free World.
After

to

and in the countries of West¬

the

at that time

cently shown

ago

times

which

aluminum

and

in

membered that demand in Europe
many

tin

Association, I called
large volumes of

the

to

in

least

at

years,

be

siy,f prices. f.orJ|hejr oi1,
«wf s?Vr
5 m?*!11®

kets in those metals and after be¬

.

The volumes of oil exported

energy

much

economy

on

gas.

Soviet

the

going through the
an economy based

now

transition from

largely

that

Corporation,

on

Banking and Business Law of the

exchange,

do

in Los Angeies be¬

Section

the

foreign

volumes

re¬

prices.

an

two years ago

Soviet

large

A number of

contribute to the idea

the Soviets are showing an
increasing awareness of the ad¬
vantage
to
them
of
relatively

To acquire the necessary

We

foreign exchange that

that

area.

i

of

earners

abroad.

;

it will

they receive for their exports, in¬ fixed at almost any figure their
cluding oil.
Petroleum and its planners desire, it is probable that
products are today
the largest a very large and increasing por-

increasing consumption, they
learned very little in this vital

purchases

West,

their interest to get

ARhough

Solely from an economic stand¬
point, therefore, the Soyiets have
a
very real interest in the prices

fore

ago.

the

chases.

cent events

been

men

rates, the Soviet Union will
have a continuing need over the
next few
years
to export large
quantities of commodities or gold
to the West to pay for their pur¬

the Soviets have.

deed.,

■'

ent

1930's.

in the coming years, the Russians
have been very close-mouthed in¬

</

for,' either directly by barter for
Soviet goods or gold, or by the
use of foreign exchange.
If they are to continue at pres¬

Western

technology in the early
important role played
by these purchases in the devel¬
opment
of Soviet industry has

mestic

(2303)

the

briefly
threat

Wachob-Bender Co., 3624 Farnam
Street.

28

The Commercial and Financial Chronicle

(2304)

Christmas

Banks Must Regain Role
As Private Credit Suppliers
their business. Bankers have been

ingeniously contriving new ways
of
collecting
checks
faster,
of
speeding up the payments mecha¬
nism.

We

have

their cash

more

efficient¬

fine

thing for

ly
This

has

been

a

bank customers,

impact

naturally, but its

banking is a different
Working balances have
mostly
work
and
not

upon

matter.

become

much balance.

Nor is the end in sight.
dications

will continue to make their

urers

working
This

balances

trend

further

harder.

work

apparently has much
and will certainly

to

go

reversed.

be

not

The in¬

that corporate treas¬

are

All things considered, the pub¬

.

lic's holdings of Purpose Cash will

probably continue to grow over
the years ahead but not at a spec¬
tacular rate.

What

about

second

our

cate¬

It

is

commonly

assumed that
discourages people from
building up their savings accounts.
This may apply to the larger ac¬
counts—Investment
Savings—but
inflation

it has not been the

Savings.

pose

case

site has been true.

than

1946.

is

The size of the

savings account today

average
more

with Pur¬

In fact, the oppo¬

twice

The

that

main

the

has risen.

what

of

was

in

a

should

vestment

expand

enor¬

For one thing, corporate

mously.

will

treasurers

get

more

even

mileage from their working bal¬
ances, thereby freeing more funds
from Purpose Cash. Two, business
depreciation charges, which gen¬

10

next

families will

millions

years,

move

up

into in¬

brackets where they can and
should build up the size of their
come

rainy day reserves—say from
hundred

eral

thousand

dollars

dollars.

to

In

Purpose

Savings have
pansion potential.
As

a

this
a

big

sev¬

few
area

ex¬

all

know, commercial
disadvantage from
the standpoint of interest rates in
competing for this business and
we

banks

are

at

a

have

savers

conscious

become

more

rate

than

they used to be.
This will probably continue to be
the

Taxation of savings and
associations would help this

case.

loan

situation

some,

associations
still

have
of

cause

but

even

if these

taxed, they would
rate
advantage be¬

are

a

the

ganization

nature

and

of

their

operations.

or¬

In

fact, if they

are taxed, they may
out more boldly for other
banking functions.

reach

Banks

will

competition

also

face

from

increasing

credit

unions,

To be sure, bankers have at hand
a

competitive

weapon

in the form

of

on-the-job banking services—
in-plant banking.
But will they
use this antidote soon
enough and
vigorously
enough?
When
the
growth
slowed

credit

of

unions

has

to

inflation will

of

leave

many

cor¬

porations with more Excess Funds
than over the past 15 years. Four,
as corporations' tax liabilities rise,
they will need more liquid assets
them.

cover

In

was

and not too
regarded as

function

of

commercial

serve

normal

aries

yore,

that, it

at

yore
a

as

intermedi¬

to

Excess

for

in

Funds

of

peculiar

a

sequence

of

the
banks
have
completely
relin¬

developments,
almost

now

this traditional function.

quished

Throughout the Thirties
and
early Forties, the public left most
of its Excess Funds on deposit in
there

because

banks

little

was

to

in

them

put them

they

elsewhere.

banks.

Until

recently

been

not

and

paper,

the

the

have

banks

too concerned about

the

loss of these funds. They still had
little

has been

demonstrated by

banks which have enjoyed
success in attracting
savings in recent years.
Some

problem in meeting loan de¬
fair¬

mands and they still enjoyed

ly large deposits of Excess Funds
on
which they were not paying
and had no desire to pay

This is
also

a

tough nut to crack but

important

an

one.

The

posit potential here is great.
all

most

bankers

would

de¬

AL

oppose

resuming the payment of interest
demand deposits and so would

on

the

supervisory authorities.
This
definitely not in the cards for
a long time to come.
On the other
hand, banks could conceivably
go much further than they have
thus far gone in bidding for Ex¬
cess

Funds with

time certificates,

time

open

chase

agreements.

accounts

and

repur¬

Perhaps there
new type of
bank liability with which to woo
is

need

invent

to

a

this money.
Some

bankers

are

very

wary

disturbing the status quo
for fear they might end up pay¬
ing more interest without a com¬

A

similar

situation

our

exists

with

fourth category of

Investment

but have not yet gotten around to

Savings.
The
distinction between Purpose Sav¬
ings and Investment Savings is
admittedly indistinct.
Neverthe¬
less, there is a whale of a differ¬

doing

ence

some

some

efforts

of the things that need




unprecedented volume of
Savings.
recent
years
much of the

an

In

savings of people in this bracket
has gone into common stocks.
In
inflation

with

future

at least

part of this
rising tide of Investment Savings
may be attracted to fixed dollar
moderated,

a

larger

banks

little

have

chance

of

competing for the vast Investment Savings potential.

Putting
categories

between

a

hundred

dollar

that the future expan-

will depend to a
great extent upon bank management

itself.

most

of

opportunities over
the
years
ahead,
banking
can
again become a vigorous growth
industry.
But, you

it has in recent years?
true, of course, that monetary
policy has
restrained
the
growth of bank demand deposits,
However, changed conditions will
call
for, significant
changes
in
Federal Reserve policy over the
years ahead.
It was one thing to
clamp
down
on
bank
deposits
when the money supply was overjust

as

It is

inflated

and

This

approach

fended

banks

three

on

have

usually

is

counts:

(1)

public duty to en¬
courage
thrift,
(2)
that many
small, unprofitable accounts grow
into larger, profitable ones, and
(3) that it is undesirable for a
bank to acquire many large sav¬
a

would make more sense
if
the
banks
were
prepared to
retain
them when
they become

large

ones

and

should

commercial

that

(3)

large,
banks

be

able

to

operate

profitably as custo¬
dians of Investment Savings.
and

safely
On

this
that

cant

ask

will

that

his

have

last point,
almost

banker

you

hesitation
accounts
over the
of his own

without

say

large

been

it is signifi¬

any

very

savings
stable

But in spite
experience, he may still hold to
the
theory that these accounts
are highly volatile,
;
years.

,

If

do

we

be

must

go

careful

Investment
cess

To

after this business,

without

goes

Funds

do this,

to

Savings
—

that

saying

attract

and

not

short-term

perhaps

we

we

true

Ex¬

money.

need new

forces

It would obviousinappropriate
to pursue

be

such

restrictive policy now

a

that

supply is relatively so

smaller

much

the

and

worst

of

have

pressures

Fortunately,
thorities

the

wedded

not

are

Reserve

au¬

this

course,

purpose.
There are, of
various possibilities: man¬

notice accounts, premium
bonus
accounts,
me¬

datory

much

to

consideration

more

any

the

to

After

all,

from

monetary

a

standpoint, it makes little difference
whether the public holds a
given amount of funds in the form
of bank deposits or in other almost

equally liquid assets—Treasbills, for example. A restrictive monetary policy causes a relative
shrinkage of demand deury

but encourages a partially
offsetting increase in the public's
At some
posits

holdings of near-monies.

point
for

there

is

shrinking

a

justification

little
the

be about

now*

Moreover,
it
is
the
overall
liquidity position of the economy
that really matters, not just the
volume of bank deposits.
At the
end of World War II, banks, busiand

nesses

This is
the

individuals

all

en-

liquidity,

over-abundant

joyed

longer true. Since then,

no

has

liquidity

excess

been

largely squeezed out of the bank-

is, if we
business?

do

want

too—that

some

of

this

There has also been
a
substantial change in the net
liquidity
position of
businesses
and
consumers—taking into acthe

count
in

unprecedented increase
short-term

their

and

liabilities

tax

indebtedness
in

relation

to

their holdings of demand deposits
and other highly liquid assets.
Faster

Deposit

Federal

is

demand

the banks
a

greater

would

any

be

considerably

a

in

should

bank

deposits

past, assuming there
for
them.
Indeed, if

can

in

succeed

demand

for

the

creating

bank

posits—increasing their

across-the-board

to

permit

the

Indicated

ahead, therefore,

Reserve

growth

hnf p

opposed

to

in

Savings are obvi¬
sensitive to interest
rate
differentials
than
Purpose
Savings and this brings us inevi¬
tably to the knotty problem of
Regulation Q. At the present time
most bankers would be strongly
more

Growth

Over the years

the

lty—then

Investment

ously

pansion of bank loans would be
curtailed.. Bank credit performs
unique role in economic growth
because of its fluidity, the ease
with which it can flow where it is
most needed by a dynamic economy.
Also, a sharp curbing of
bank loan expansion could badly
a

dependent

borrowers

hurt

their

banks

as

and

upon

of credit-

source

businesses

new

cially.
In addition,

further

a

espe¬

relative

de-

popular-

monetary

author-

™t«,°nly expand.
WillinJg
them

should

speaking,

erally

be

re-

the least. It would verge
suicidal for the Federal
to pursue a policy of con¬
reducing the role of com.

mfcial 5anks as suppliers of pnvaT1^,c^e

.1'1

u

n

,

n

What will actually happen, time
can
ivS?,
Lw
£ei?t years are ha:rdly encour;agjg
^ut common sense suggests that
,s°me °£ these trends sho d
?hange.; Surely it is not too much
to hope that the monetary author i
wli
conslde3*J*kle weight
t° the foregomg consideraltions in
J?rm a ftheir, policies ov

the years a

Impending Squeeze
BaJik Earnings

The

What

add

factors

these

all

do

on

^ in termg q£ the Qutlook for
bank
earnings?
This
year,
of
up

wiu

be at

bank earnings will

COUrse,

levels

record

in

and

total dollars

comparatively

look

even

g00d as a percentage return on
capital funds. However, when you
analyze this showing, you realize
that it is the result of an unusual
combination of favorable factors,
a

which

combination

cannot

en-

dure.

ing system.

than

so

balpayments problem will
create greater willingness to solve
these underlying causes of inflation.
This would further reduce
the need for monetary restraint.
4 Moreover, a progressive shrinkage
of the money supply could
have
serious
repercussions.
If
such a policy were to be continued now that the banks are
more fully loaned; the future ex-

supply

money

That point may

assets.

faster

do

it is quite possible that our

shifting into other highly liquid

obligations, and the
competitors will
in
all
probability develop new
savings products of this kind. May
to

and debt management policies and
to halt the wage-price spiral. And

results largely in

further when it

dium-term

need

stances, it should not be overdone
in dealing with this kind of inflation.
What is needed now is to
achieve
non - inflationary
fiscal

strained
on the
omy for economic growth, includReserve
ing its needs for bank credit.
tinually

like.

not

is appropriate under some circum-

aggregate dollar demand for goods
and the requirements of the econ-

willing

we

clear by this time,

contraction of banking would further impair the usefulness of
monetary policy, not only by reducing its total impact but also
by concentrating its restraining
they will probably give effects upon borrowers who, gen-

however,

accounts,

Our mutual

con-

doctrine regarding the
money supply. They had good reasons
for
giving
considerable
weight to this factor during the
postwar period.
In the future,
rigid

types of savings contracts tailored
for

should

however, that while such a policy

small

inflationary

subsided.

de¬
that

inflationary

rampant.

the

counts.

monetary authorities

tinue to contract the money supply relative
to Gross National

ance; of

,

,

may ask, will not Federal
Reserve policy
restrict the
expansion of banking in the future

Investment
Savings. Many, indeed, apparent¬
ly have no desire even to try.
Their
approach
to
the
savings
business is
geared almost 100%
to the promotion of Purpose Sav¬
ings—the most expensive type of
savings money. If people do hap¬
pen
to bring
them Investment
Savings or leave them on deposit
through inertia, these
accounts
receive no higher rate of interest
than is paid on small, active, un¬
profitable
Purpose
Savings ac¬
these

for

make the

If bankers

their

the money

effectively

that Federal Reserve policy

will be guided by these considerations.
Some
dogmatists
will
doubtless contend that as long as
creeping
inflation persists,
the

It should be

all our four
deposits, you

together
of bank

present, of course, the com¬
mercial banks are not competing

At

Admittedly, we have no assur-

Produtt.

ly

Savings?

Investment

for

Anyone

bank deposits.
ance

Future Monetary Policy

were

forms of investment.

it

about

respect to

made

class

Investment

is

funds:

have

a

This will gen-

interest.
ings accounts.
with these deposits al-'
My answers would be: (1) that
most gone and with their touch¬
banks
should
encourage
able liquid assets almost exhaust¬ while
thrift, they could still do more to
ed, some bankers are wondering
promote profitable as well as un¬
whether they should try to resume
(2) that the
this former banking function. And profitable accounts,
nurturing of small accounts into1
if so, how should they go about it?

many

Others

a mass.

But today,

considerable

banks, however, have hardly tried.

What has been

the

As the

short-term money market.
result

'erate

the

of

days

something less than a
gallop, will be time enough to
pensating increase in deposits and
break out the champagne.
income.
This is indeed a chilling
Fortunately, commercial banks
thought and not one to be treated
have some advantages as well as
lightly.
Nevertheless, it would
disadvantages in competing for
certainly be desiralbe if the banks
Purpose Savings.
One is that in could
regain their lost position as
attracting this type of savings, a
major intermediary for shortrate is still less important than
term money on a profitable basis.
the factors
of convenience
and
This is a problem that needs more
safety.
If banks make the most
pondering.
of this and really go after savings,
they can get them.
The Coming Explosion in Savings
This

generated—

are

will become

shiny silver lining is that

the

over

Savings

25 million.

than

commercial

of

ment

Invest¬

ing rapidly. Three, the subsidence

Funds

Excess

more

like.

One

earning
in this

.income bracket—families
$7,500
and
over.
It is
bracket
that
almost all

fold since 1946 and are still grow¬

erate

posits might

rather bleak.

the

anything else, have increased five¬

other

seem

into

probably 95% or more.
Over the
coming decade
the number of
families in this group is expected
to more than double—from about
12 million families to more than

incentive

years

Unless this is done, com-

mercial

of banking

Today, however, with the recov¬
ery of short-term interest rates,
there is little excuse for leaving

the

over

permit

to

posits.

sion

bills,

inflation

no

Q

banks to pay a higher rate on certain
specific types of time de-

upper-middle

ahead, the outlook for these de¬

or

has

that
been

modifica-

some

Regulation

movement

day

Assuming little

aware

of

of

funds available for short-term in¬

Consequently,
have largely shifted
into
liquid assets — Treasury

savings deposits.

all

are

revolution

income

an

consideration

agree

this

tion—has accounted for a large
part of the total increase in banks'

We

generally

is

than

greater

the monetary authorities to try to
offset this by squeezing other

However, this should not preclude

may

for

factor—infla¬

one

third

our

rainy

reason

cost

This

it

is

much

realized.

Thursday, December 8, 1960

removal of the existing

or

category: Excess Funds.
Over the years ahead, business

banks

day reserves?

at

now

expansion potential
Savings may be

future

Investment

.

ceiling of 3% which banks are
permitted to pay on time deposits,

$5,000 to $7,500. What is not appre¬
ciated is that the next phase of
this revolution will be a massive

Savings

Purpose Savings—the rainy

gory:

look

Let's

of

raising

tion

taking place in this country. Mil¬
lions of families have moved into
the middle income brackets —

A Lost Function

to

The Potential in Purpose

substantially if

Savings
they really try.
Purpose

methods to enable corporations to
manage

be

should

devised

also

In the future banks
able to increase their

savings.

for

a

money.

The

done to compete effectively

to be

Continued from page 7

and

account

Club

savings
account
that
stays with you year after year on
a
permanent
investment basis.
They are very different kinds of
$10,000

.

.

have

I

Here

a

suggestion

to

offer, namelv, bankers should sit
down

over

time and make

some

pro-

a

bank's

earnings

the next five years.

I do not

jection

their

of

this

recommend

pastime
clarify
which

but
the
most

as

a

because

delightful

it

should

earnings
problem
banks
will be
up

^Fou^ variables

control the prof-

the level of
rates, the composition of
assets, the level of operating expenses, and capital position.
All
of these variables except
oneitability

of

a

bank:

interest

operating expenses
.strongly

working
favor

future

over

—

have been

in

banking's
The

the past 15 years.

however, may be very

dif-

ferent indeed.

In projecting earnings for the
certainly canexpect, to say the least, that
persuade people to make more the level of interest rates will rise
use of checks in
paying their bills, as rapidly as it has over the past
For

eased to

see

example, if the banks

this would lead

personal
not

to

checking
make

an

can

increase in

accounts.

much

sense

It
for

nex, fjve years, one

not

15

years.

As for the

composition
typical, ~

of assets, if a bank is at all
it

cannot

continue

shifting

from

Volume

192

Number

6010

.

.

The Commercial and Financial Chronicle

.

low

An

ing

This

yield assets into higher yield¬
assets, notably loans, at the
same
pace as it has been doing.
Similarly, bank capital ratios have
declined

substantially

trend

cannot

too

and

continue

this

indefi¬

nitely. On the other hand, despite
automation,
operating
expenses
continue

will

This

rise.

to

indicates

impending
bank earnings.
From
an

of

Abundance
does

banking

Challenges

problems

One

means.

of

exhaust

not

of

by

any

will

banks

Many

management.
feel

the

impact of

re¬

gional shifts in population and in¬
dustry.
City banks will have to

earnings standpoint, banks are
approaching the end of an era.

Over the years

sion of the suburbs.

on

an

ahead, many banks
earnings prob¬
lems.
I do not mean to imply that
these problems cannot be solved.
They can be, of course, but this
is going to take some doing.
will

difficult

face

Answers to the

Earnings Problem

service,

adapt to the

good

and

cultural economy.

ities

Tougher competition will make
of these

some

problems even more
competition

What
no

ly,

but

and

banks

will

differ

from

one

I would like to

brief

few

a

There

this, obvious¬
different answers

many

to another.

offer

do?

to

answer

they

bank

the

can

one

comments

re¬

garding it.
with

problem of
banker's first reaction

this kind, a

a

is to go over each item of income
of

but

and

try to find

to

expense

obtaining

profit margins

bank

highly

aggressive,

further

in

ways

offering more banking

banking

banks,; there is plenty of gold to

in the area

found

be

by

this

obvious

to

up

abun¬

an

for

challenges

the

one's

do in

public

bankers.

which

What

bank.

can

bank¬

to these chal¬

response

determine the future

will

American

of

In

banking.

these mills
duction.

of

Commercial

bankers are
with many challenges
of public service. This

confronted

by
Dr.
Adams at the
Banking
Management
Pro¬

address

*An

strictly

all these

problems,

of the Graduate School of Business,
Columbia University, Arden House, Har-

gram

York,

New

riman,

in

which

Nov.

14,

1960.

economies

operating
banks
For

not

as

example, employee and offi¬
productivity is much higher

cer

in

have

which other
yet explored.

53

STATE OF TRADE AND INDUSTRY

In

general, however, the most
promising approach lies in the
area
of broad management poli¬
cies.
At this level, banking con¬
sists of the science of maintaining

20.4%

5,593,707

above

the

in

week

totaled

Nov.

ended

471,400

of

tion

Peak year 1955 netted

in history.

Week

Down

the Associa¬

cars,

Railroads

American

This

nounced.

1980,

26,

was

an¬

decrease

a

of

second-best
102,829 cars, or 17.9% below the
a
sensible balance
in
a
bank's
year 1950 some 6,674,933.
corresponding week in 1959 when
safety position, its liquidity posi¬
Ward's, however, described the

tion and its earnings position. For

this has not presented

many years

complex problem for most
banks
because
they
have
en¬
joyed more than ample capital
funds and liquidity and the trend
of their gross revenues has been
strongly upward.
a

very

None

prevail

of

the

over

least not to the

will

conditions

these

ahead,

become

compli¬

more

including nolicies with respect to both liquidity
distribution.

bankers

this pretty

have

much by

For

been

years

playing
The dis¬

ear.

their

of

tribution

assets

today

largely reflects the combined re¬
sults of countless day-to-day deci¬

total

of

with the 1,688,227
ranking second best.

ders

Day

under

earlier

Compared

conscious planning may be
required. We shall need to an¬
alyze our liquidity requirements
in greater detail.
We shall need

more

reexamine

to

of

some

our

con¬

cepts and criteria with respect to
both

liquidity

capital

and

ade¬

quacy

in the light of

tions.

We must reconsider estab¬

condi¬

new

all

the

plant

cury

was

Louis.

St.

at

Dart-Lancer-Valiant
Hamtramck

the

baker-Packard

and
Corp.
at

•

in

had

to examine for years because

Scuthgate

our

earnings have been adequate.
many banks, a specific case

(Mich.), AM Corp.
GM
Corp. at

days this week.

in

In

GM

Corp.

pro¬

26.9%, Chrysler Corp. 10.8%, AM
Corp. 8.5% and S-P Corp. 1.2%.
Some
33.3%
of industry assem¬

have

we

of

the seat

our

been

pants

flying
toward

on out, we shall n,eed to give more
thought to whei^) we want to go

and how

One

we

going to get there.

are

further

point.

If

centrate too much of

our

we

con¬

thinking
on
the factors we have just been
discussing, we shall fail.
What I
mean

is this:

ing depends

The future of bank¬

understand

needs

of

the

how well bank¬

upon

and

public. To solve

earnings problem,
in

the

serve

terms

we

must

of service

terms of dollars.




our

think

than

in

blies

were

compact

Electric Output
1959

cars,

this

traffic

pared
40

in

in

Co.

3.3% Above

Week

ended

amount

of

electric

somewhat

with good volume and
light offerings. Higher trading in
soybeans and soybean oil helped
soybean prices rise appreciably;

export

below;

purchases

receipts

Although there
that

the

total).

This

orders

trading on the New York Cotton
Exchange
showed
little
change
from

the

prices

for

were

mills

was

shipments
and

were

orders

new

below.

Rise

in

Business

Dec.

1

Failures

Despite

week

conscious

and

a

over

a

261

moderately heavier than
last

of

of

I

U.

rail¬

S.

originating this type

the

the

class

current

50

one

week

year

com¬

and

ago

in

.

corresponding week
'

'■

I

*

'

-

■

•

i

of

from

251

last

5.6% Below 1959 Week
week

ended

that

week

of

nounced.

17.5%

truck
Nov.

the

of

26

Inc.,
tonnage

Truck

of this

week-to-week

decrease

large

an¬

year.

is

measure

The
the

Thanksgiving Day holiday during
the week reported.

weekly

findings

survey

are

of

based

34

and

other

der

230

hand,

involving losses
dipped again to

$5,000

32

the

in

25

the

of

previous

above

ran

week's

of

268

small failures

un¬

22

week.

$100,000 for

casualties

as

30,

down

was

selective

Best sellers

f,

a

men's

were

apparel, small elec¬
and

reports

new

than

furniture.

indicate

that

passenger cars slipped

week earlier, but remained
year ago.

The

total

tail trade
vember

dollar

volume

of

re¬

in the week ended

No¬

30, ranged from 4%
unchanged from a

be¬

low

to

ago,

according to spot estimates
by Dun & Bradstreet,

year

collected

Regional

from

estimates

varied

the

comparable 1959 levels
following
percentages:
East
South
Central
4-1 to '4-5;
New England, South Atlantic and
by

the

Mountain —2 to
—3

to

+2; Pacific Coast
Middle Atlantic and

-f-l;

West South Central —4 to 0; East
North Central —6 to —2;
West
North

Central

to

—7

—3.

against 36 last week.
Nationwide Department Store

Canadian failures climbed to 72

and

in

36

the

preceding week,
corresponding 1959

the

in

37

Sales

Down

2% from 1959 Week

Department

sales

stores

country-wide basis

week.

as

on

a

taken from

the Federal Reserve Board's index

Food

Wholesale

Price

for the week ended

Index

show

Highest in 20 Months
Wholesale

The

compiled

dex,

street, Inc.,

highest

Food

Price

In¬

by

rose

Dun & Bradthis week to the

period last

ceding
the

4%

months.

20

in

level

the

Jan.
a

1

were

and
lambs.
flour, rye,

coffee and hogs.
&

Dun

Bradstreet,

Food

resents the sum

pound

of

and

meats

in

not

a

Inc.,
rep-l»

Price Index

total of the price

31

raw

general

cost-of-living

foodstuffs
It is

eral

of

trend

food

index.

prices

at

lambs

prices

on

some

sugar,
butter, steers and
offsetting declines in flour,

hogs and rubber, the general com-,

modity price level edged up frac¬

latest week. On
Nov.
28
the
Daily
Wholesale
Commodity Price Index, compiled
tionally

by
at

in

the

Dun & Bradstreet, Inc., stood
(1930-32=100), up frac¬

262.74

tionally
262.50

of

from
a

28

a

The

period showed

sales

in

New

ended

change

over

year.

In

ended

the

Re¬

department store
York City for the

Nov.

the

Nov.

Federal

the

to

System,

the

26

showed

no

period last
preceding
week
same

sales

19

6%

were

period last year.
For the four weeks ending Nov.
26
a
2%
increase was reported
over

the

Jan.

1

to

1959

achieved

period,
26

Nov;

5%

of

gain

same

in

above

the

and

there

1959

the

from
was

a

level

period.

Electro-Mechanic
Common Offered

Up Fractionally from Prior Week

grains,

26

the

level.

higher

Nov.

reported.

Its-

Whoelsale Commodity Price Index

With

For

use.

chief function is to show the gen¬

wholesale

de¬

reported.

ended

was

According
serve

below

eggs

cost

in

the
pre¬

increase.

lard,

butter,

1960,

over

In the
Nov. 19 a

was

Nov.

2%

year.

weeks

to

1%

Nov. 26,

of

for

7%

decline

week

Lower

week
of

four

highest
since the $6.19 of March 25, 1959.
Up in wholesale price this- week
were
oats, barley, beef, bellies,
was

decrease

a

crease

On

in

gain

current

like

increased for the sixth

level

29 it

a
row, hitting $6.18 for
of 0.5% from the week
earlier $6.15 and an increase of
4.4% from the $5.92 of the cor¬
responding date last year.
The

attrib¬

to

earlier

the

to

was

volume for the

the

previous week
in

American

Associations,

behind

5.6%

corresponding
the

1959,

was

the

week.

liabilities

climbed

On

per

in

tonnage

with
week

a

year.

Wholesale

Intercity

comparable

more

or

'

Intercity Truck Tonnage for Week

toll

occurred

November

housewares

Inc.

Casualties

$5,000

trical

were

1958

1939.

The

-

the

Continuing
above
the
pre-war
level, business mortality exceeded
by 10% the 264 failures occurring

a

the

than

the

for

294

they

year,

slightly lower

week

above

and

women's

from

were

in
in

upsurge

slightly from last year. Although
shoppers were out in good num¬
bers, they were a little more price

sales of

week, reported Dun
Bradstreet, Inc. While casual¬

warm

the usual

but over-all retail trade

Scattered

1960 to¬

increase

unseasonably

weather in many areas,

increased mildly to 290 in the
week ended Dec. 1 from 276 in

ties

and

Christmas Shopping
Slightly Below Last Year

Week

industrial fail¬

ures

loadings

an

week

steady.

Initial

year ago.

Commercial and

was

34.0%

preceding

were

ended

reporting

5.4%

the

forecast,

the

new

below;
below,

equal
1

shopping

24.7%

and

doubt

some

Nov.

Christmas

Nov.

of

was

would

crop

government's

post-Thanksgiving

of

good

were

light.

were

the

'

These

energy

in

Nov.

above.

that

on the
metropoli¬
distributed by the
electric light tan areas, conducted by the ATA
and power industry for the week¬ Research Department. The report
ended Saturday, Dec. 3, was esti¬ reflects tonnage handled- at more
mated at 14,368,000,000 kwh., ac¬ than 400 truck terminals of com¬
cording to
the
Edison
Electric mon carriers of general freight
Institute. Output was 868,000,000 throughout the country.
kwh. above that of the previous
The
terminal
survey
for last
week's total of 13,500,000,000 kwh. week showed
increased
tonnage
and showed a gain of 461,000,000 over a year ago in five localities.

The

prices advanced slightly from the
period.
Following the rise
corn,
oats prices
moved
up

prior

Compared with the
corresponding week in 1959, pro¬

1958.
'

utable

cars.

revenue

piggyback

55

with

week's Trucking

Motor

more

in

or

were

below

grammed 52.6%
of
car
volume,
Ford

undefined destinations. From here

more

said

six

worked

(Calif.)

short,

ment

ers

Ward's

and

would be the manage¬
of their savings deposits.

point

by

Wisconsin

with

Strengthened by increased buy¬
ing
and
smaller
receipts, corn

duction

(piggyback) in
Nov.
19,
1960

1958 week.

road systems

at

and

folk and Wixom

reported

corresponding week of
4,426 cars,
or
65.6%

495,860

There

Dodge

Ford plants at Dallas, Nor¬

cars

corresponding period of 1959, and
250,888 cars, or 102.4% above the
corresponding
period
in
1958.

StudeSouth

(Ind.) was cut to three days
Plymouth-Dodge output at
Delaware and Los Angeles to four

or

first 46 weeks

125,777

Bend

days.

the
and

above the

Mer¬

assembly

(Mich.)

Nov.

increase of 2,268 cars or 25.5%

1959

said.

agency

of

included

were

over-all

above

weeks, with

or

ended

week

week's
an

one

trailers

(which

taled

week

or

16.9% be¬
non-holiday

cars,

Cumulative

work

week

11,174

were

with

fcr the

lished policies which we have not

For

week

were

sluggish flour business.

previous
19, 1960,
production of reporting mills was
24.7%
below;
shipments
were
full

from

production was criss¬

statistical

Down

the

in

preceding

highway

Saturday overtime at a minimum,
the

the

loaded

1950

October-November

three-day

cars

corresponding
Thanksgiving

The

95,899

were

normal straight-time

This week's

1958.

There

slightly

but

week

68,089

week.

weekly levels.

analysis and

more

5.4% below production.

were

Liabilities

26

111,091 for Thanks¬

above

giving

rate, and
equivalent to

identical mills were
production; new or¬

below

from

low

this adjustment, car
output was scheduled at 141,071
units in U. S. plants this week
—57%

of

the

below
in

Loadings

Reflecting

and

and customer demand.

in

24%

current

were

reporting

2.9%

Day holiday fell in each of these

1,777,000-unit fourth

1955,

to

For the year-to-date,- shipments

weeks.

The peak fourth-quarter
of 1.949,131 cars was set in

of-thumb, and the impact of ex¬
ternal conditions, cMefly competi¬
future,

12.6%

562,000 cars follows totals of 597,20C in November and 617,800 in
—a

decrease

a

week

output target of

The December

sions, adherence to certain rules-

In the

and

history.

industry

favorably affected
of the steel strike

were

settlement

by

second-highest in

will be

volume

crossed with

tive forces

nothing
post-

as

customary

the

quarter.

Take, for instance, the matter of

loan

loadings

introductory period output adjust¬
ment and said the fourth-quarter

October

cated.

most

schedule

than

at

asset management,

and

and

cars

December
more

degree. The

years

same

science of bank management will,

therefore,

7,942,132

re¬

days' production.

the

Loading of revenue freight for

the second-highest year

and

1959

for

Loadings

17.9% Below the 1959 Week

production to 6,734,100

entire 1960
cars,

Car

swells

forecast

of

week

a

earlier;
light. In
contrast, rye prices dipped notice¬
ably due to higher receipts and

&

562,000 car com¬
December,
Ward's
Reports said.

December

The

orders

amounted

the

from

offerings

the preceding

of the

kwh., or 3.3% above that
comparable 1959 week.

5

programming
pletions
for

than in others.

banks

some

at

For

Automotive

1960.

22.0% above pro¬

were

stocks

gross

Mild

Continued from page

26,

orders of

new

stocks.
For
reporting
mills,
unfilled
orders
equivalent to 14 days' pro¬

17.0%

ap¬

particular

holi¬

gross

were

ways

be¬

the

Nov.

week,

mills

duction

Another step is to look at what
other banks are doing.
There are

banks have successfully developed
new sources of income or achieved

during

Unfilled

porting

1.6%

were

ended

same

23.7%

proach.

many

the

0.2%

addition to

In

adds

of their institutions and the future

services.

earnings and
keeping costs down. And for most
more

all

lenges

Barometer

were

to

ers

still

go

may

in these peril¬
publjc responsibil¬
given high priority.

1959 Week

softwood

benefit

At the same time, our
competitors,
already

groupings.

con¬

And

service

competitive

strongly

more

-

pinched

banks continue to combine

as

into

are

to

of these challenges
constitutes an opportunity as well
as a problem—an opportunity for

intense in most areas
may
become more so as

it

bank

gen¬

a

common

Yet every one

already

non

Confronted

and

is

Trade

be

of

Same

shipments of 452 mills
reporting to the National Lumber

our

must

dance

Interbank

difficult.

the

sincere efforts

times,

This

*

is

It calls for
with

tribute to it.
ous

Below

29

chases of wheat moved
up during
the week helping prices rise mod¬
wheat

1.6%

Lumber

week

our

1959

erately

day

burnish

to

the

Shipments Down

production

concern

problems result¬
ing
from
the
revolutionary
changes taking place in our agri¬

from
\

Lumber

low

public image.
uine

points reflected de¬

tonnage

than occasional ges¬

more

Rural banks

will face special

creased

in the

than

more

intended

tures

Twenty-nine
level.

lip-

calls' for

This

decline of city cen¬
ters, the burgeoning of metropol¬
itan areas, the continuing expan¬

squeeze

to

day. Suffice it to tay that

problems will be the recruitment
development of capable per¬
and

de¬

emphasis than
give it here to¬

more

time

long run, individual banks and the
entire banking industry will grow
and prosper only as they succeed
in identifying themselves with the
public interest.

and

sonnel

have

facets and

many

far

serves
we

critical

most

our

subject has

list

our

(2305)

the

1960

week earlier.

low
It

of

com¬

pared. with , 276,77 on the corre¬
sponding date a year ago.
Both domestic and export pur¬

The Electro-Mechanics
lake

Co., West-

Hills, Texas, publicly offered

100,000 shares of its 10c par com¬
mon
stock
at
$3 per share on
Nov.

23.

The

offering was underwritten
C. Tucker & Co., Inc.,
Austin, Texas; Hauser, Murdoch,
Rippey & Co., Dallas, Texas; Bala
Williams
&
Co.,
Wichita Falls,
by James

Texas;

& Co.,
and Aetna Se¬
Corp., New Y$rk City.

Wm.

Corsicana,
curities

B.

Robinson

Texas,

net proceeds of the offer¬
will be added to the com¬
pany's working capital.
The

ing

K*t

'jf»wraw

20

The Commercial and Financial Chronicle

(23C6)

tions.

What Steel Industry Must

the

Realistically Face and Do
Continued from page

sible need for

to the

serves—and

it

kets

reappraisal of the

a

in relation

industry

I don't believe there's

3
mar¬

new

cam¬

a

paign to get to those markets, to
find out what they need and want,

This, of
course, has been done, and done
.efficiently, by many companies
in the industry. But I am saying
that the problem deserves the at¬
tention of all in the steel indus¬
try.
Let's not forget that some
,

and

sell it to them.

to

of the inroads
made

steel have been

on

companies which fol¬
lowed this very tactic—they went
by

invented

and

out

for

uses

new

their

products. They were suc¬
cessful in convincing users that
there was an advantage in trying
a

material,

new

building,

or

of
in

way

concept

new

a

packaging.
If you look

new

a

who

wouldn't

if

—and

buy that statement
reject

try is staid and old, (and I hope
we
all reject that thesis
vehe¬

then

I

spend

lot

a

search
order

to

going to have to
money

more

the

over

the

that

submit

steel industry is

re¬

on

in

decade

next

things.

improve

investigations in
process develop¬

its scientific
metallurgy and

ment—studies which have already
resulted in vast technological im¬

of existing processes,
and in the development of com¬
provements
pletely

of " steel-

methods

new

making.
I

would

looking at the industry,
it

that

think

also

very

deal

of

should

probably be spending

good

a

it in this way,
the steel business isn't really the

technical

steel business at all. It is transpor¬

might, for instance, point the way

at

time

effort

and

research:

non¬

on

that

research

tation, packaging, construction. It

to

is

logical developments may be more
readily adopted by steel
com¬

shipping,
power
generating,
household appliances and gadgets.
It is most certainly national secu¬
rity.

and many more.

and

users

empathy with
that

consumers

cause

companies to grow, and if the
industry feels that the lack
of it may be one of the factors
which gave rise to this "staid and
old" reference in Newsweek, per¬
steel

haps

is

it

its

Serves

matter which deThis way of

a

attention.

looking at things emphasizes the
challenges that the steel industry

the

serve

and

economy

nation.

the

Criticizes Paltry Research
Now

where

this?

into

research

does

Perhaps

Effort
fit

glance back

a

through history will help to pro¬
vide the answer, by reminding us
of the snail's pace at which change
has
taken place up until
com¬
paratively recent years. Remem¬
ber the terms in our history books,
the Hundred Years
dle

War, the Mid¬
Ages, the Roman Empire—ex¬

pressions used to describe periods
;

which lasted from

century on¬

a

wards, and during which relative¬
ly little fundamental change took
place.

I venture the generaliza-'

tion that up until about the time
of
the
Industrial
Revolution,

change was almost always a slow,
gradual, evolutionary process; and
that the development of the scien¬
tific method and its subsequent
application to the solving of prac¬
tical problems did more to accel¬
erate change than any other hap¬

*

out,

been

has

steel

pening in history.

incisively than
in the past, how

be better made to

what

and

The

construction
about

sumed

produced

lived

ever

there

are

now

relationship

any

between these facts? I submit that
there is. It has been said

that the

invention
of
modern
science is the concept of research
itself, for research has provided
greatest

of

the

creating

tools

across

unknown

was

to

a

the
pre¬

vious generations.

made

Has the steel industry fully ap¬
the importance of re¬

search?

pears

that

tinue,

the

the

if

point out to you only
this: In 1958, about $9 billion were
spent on research and develop¬
in

the

United

States.

The

research and development budget
of the
was

steel

about

industry in that
$125

million

—

year
some

1.4% of the total.
When measured
■tr

sales, this
tion to

was

as

the

a

if

we

a

lot

It

trends

recent

ap¬
con¬

in

growth
for

market

do¬

and

other

steel

products will

be

seriously jeopardized.
On the other
construction

signs

new

techniques and de¬
have
a
significant

could

positive

hand, certain

effect

the

on

for

area

research

conceived

broadly

for

—

some

studies

aimed

identifying the deep human
motivations, the areas of agree¬

effect

ment

I have reviewed

at

and

disagreement,

and

effecting
satisfactory

groups.

kind

This

of

study, it seems to
me, would involve analyzing and
seeking to understand some of the

basic

very

drives

far

a

little

too

underlie

that

human behavior. It is
is

an

that

area

explored

by the
We've done

community.

great deal to further

under¬

our

standing of visible but real physi¬
cal forces like

netism, but

electricity and
have

we

mag¬

whole range

a

of unanswered questions about the

invisible
that

but

affect

real

our

human

about

Do

the

awareness

of

resentment, of atti¬
superiority?

of

Are

hate?

or

an

that

of problems—and




the

on

implica¬
Research

work

let

Now

final

a

must

underlie

mu¬

No

will

one

I

am

work

and

concern

all.

us

challenge the

asser¬

the

in

of

area

some

labor-man¬

believe that it

begun
its

to

or

tackle

broadest

the

most

or

else has
problem in

anyone

fundamental

And think of the contribu¬

terms.

world

would

the

if

a

be

made

the

to

nation,
and
the
co-operative
effort

seeking better to under¬
stand the workings of the human
mind

could

be

will be

undertaken.

it has

never

industries
has

during that decade as
produced before. New

will

risen

in

old

that

will

—

will

There

be

are

past; and

really

story-high

in

webs^

to

seems

that

me

a

few hundred

■

'

-

4.99%.%

about

de¬

consumer

ma¬

the

needs

times, will certainly change

willtell
what those changes will be.
On
the
international
scene,
there

probably

Only

will

time

-

be

continuation

a

acceleration of the

and

cial

upheavals

that

broad

so¬

taking

are

future.
A

'

•

•

characteristic

find

behind

in

future.

There

the

rush

who

have

future

Let

that

be

us

values

own

this

where

dear—

of

the

that

in

we

to

want

can

construction

the

company

construction
fore

to

use

to

provide

for

the

is estimated, that

the

the

of

and

1960

year.

prop¬

last-three
for

will aggregate

1961

year

gross

the

additions for

proximately

ap¬

643.

square

-

miles,

.

of about 1,the
entire
District of Columbia and portions

having
464,000,
of

population
comprising

a

contiguous

and

Maryland.

Ford Electronics

:

Common Marketed

Nov.

4,

1960.

underwriting group headed by

Thomas Jay,

Winston & Co., Inc.,

Beverly Hills, Calif, on Dec. 1 of¬
fered 150,000 shares of Ford Elec¬
tronics

could provide greater spans, fewer

conceived

stock at $2 a share.

columns, and

worth the effort.

structural

up

-

Another
a

be

usable

more

space.

example is the

foaming,

could

components

fireproof
sprayed

which

steel

on

Let

of

use

film

and

me

studies

would

well

be

Electro-Science

parenthetically that
object of

say

I do not believe that the

such research should be to
nate

elimi¬

examples of

are

other designs that could favorably
steel prices.
Use of steel

affect

also

broader

increase

if there

acceptance

were

standard

of

bringing these tensions under
trol

would

this

industry's

If

steel

be

fitting

a

con¬

its

for

area

to

take

and

sponsor

international

ready for

rapid

These

are

concepts

that

human

Is

steel

doing enough
now
to
prepare
for translating
these ideas into practical applica¬
It

seems

to

that

me

major

a

amount of research attention could

be

devoted
in

areas

tunities
and

to

these

and

determining the
for

steel

in

portation that will

three,

five,

and

be

trans¬

ten

infinitely

dustry
for

I

have

of

in¬

steel

very important area
that deserves urgent

where

labor-management

some

assets.

Knapic

Electroc-Physics,
Inc.,
of the world's largest pro¬
of

silicon

and

germanium

discussed

industries
faced

lems that

I

and

in

the

rela¬

which is located

company,

11747

at

wood,

Vose

Calif.,

engaged

Holly¬
in the

fractional

horse¬

is

manufacture

North

St.,

of

motors and in the produc¬

power

tion

of

ture

capacitors. The issue will be

miniature

subminia-

and

handled by brokers in New York,
San Francisco and Los
John

N.

President

has

Director

and

company

since

has

active

been

Angeles.

Valianos

its
irt

been

of

.

founding.

*

when
of; the

.%

he.

President

elected

was

Farallone '

Packing

of

Co.

San

rectifiers, diodes, solar
infrared applications.

Fed. Land Bank

"Our

and

firm

supplies some 40%
of the crystals used in the United
in

States

the

manufacture

of

semi-conductors," said Dr. Dean
Knapic, President of Knapic Elec¬
tro
Physics.
"This represents a

He

Coast enterprises since 1934

Francisco.

cells

"*

the

West

various

crystals for use in semi-conductive
devices, which include transistors,

substantial

research

that

portion of

which

grown

has

industry

an

in

eight million units

output from
in 1957 to an

panies. Increasingly, I feel, United

dealt

is

to

%
$186,000

,

•

:

■-

;

Bonds Marketed
The
on

Federal
Dec.

7,

Land

$91,000,000

Banks

issues

two

principal

offered

bonds,
amount of
of

-

up

will

with

can

with

be

by

find

common

great sense for

it
companies

course,

product and process de¬

velopment

on

their

own,

and for

133

million

units

in

1961."

3%%

BOCA
der

RATON, Fla.—A. M. Kid¬

&

branch
eral

ment

Co.,

has

Inc.,

office

at

124

opened

South

Highway under the
of

L.

Russell

Gear,

a

Fed¬

at

principal
due

Oct.

Proceeds

5.40%

New Kidder Office

bonds

priced

used

prob¬

effectively
industrial groups
Of

e'timated

them¬

more

associations.

makes

area

the

Inter-Industry Research

to pursue

done

to

attention.

believe that productive and useful
be

a

as

research

would

constructive. So

more

this

it

and

weapons,

commend

research

could

more

new

selves

area

be-

years

coming

Labor-Management
possible

could

relates to the industry as a whole,
and not just to individual com¬

Relations

Another

behavior

ular

I

total

dis-. is one
ducers

The

this country's deal¬
with the rest of the world
the development of spectac¬

be

ESI's

knowledge about

important in

States

Research

relations.

of basic

for

even

other

and

even

perhaps

than

ings

oppor¬

construction

manufacturing

and

some

industry are already think¬
about, and that will be a
challenge to develop in the years
ing

come.

industries,
covery

in the

commitment

The

proceeds,

some

assembled

units

Elec¬

lead-,
$3.5 million within the past month.
signifi¬
cant research in this field, it could This represents well over 20% of
ership

have great consequences for other

erection.

stock.

common

The investment in Knapic
vestment

the

building components and if fabri¬
cators would
adopt productionline techniques for producing subon-site

and

tro-Physics brings ESI's total in¬

concern.

were

tures

common

no-par

will
be added to working capital and
the
balance
will
be... applied
against current obligations.

Acquires Control
In

all

Corp.

the

Of

tensions
between
largest investment to date,
labor
framing to eliminate
and management, nor do I think Electro-Science Investors, Inc., of
^he need of concrete cladding and
this would be desirable.
Human Dallas,
has acquired over 80%
reduce the cost of building with
under
control— equity in Knapic Electro-Physics,
these
metals.
Plastic
design
in tensions—kept
multistory construction, load- produce a healthy situation in the Inc., of Palo Alto, Calif., for the
area
of
The equity is
labor-management rela¬ sum of $2 million.
bearing sandwich walls with erec¬
tor-set characteristics, and suspen¬ tions. However; working towards jn the form of convertible deben¬
aluminum

i

Virginia

in

areas

thousand dollars invested in well-

built

a

company's con-r
tinuing construction program:
of

have.

*An address by Dr. Carter before the
Regional Technical Meeting of the Amer¬
ican Iron and Steel Institute, San Fran¬

Calif.,

for a portion of the
expenditures hereto¬

and

made

portion

An

cisco,'

and

our

want

we

expenditures

corporate purposes. The bal¬
ance of such net proceeds will be
used to reimburse the treasury of

mind;

research,
with all its remarkable capabili¬
ties, to achieve the kind of future
go.

com¬

,

proximately $67,000,000.
left, —The
company furnishes electric
the
power
to a service area of ap¬

using
disposal to

sure

•
%
proceeds to the

rowings made for working capital,

months

are

firmly

are

know

we

Then

and

their

at

means

it.

image

want

for
ma¬

other

is

in

hold

we

clear

a

they

every

get

values

100%

before

$9,725,000 will be used to pay the
company's outstanding bank loan
notes. Such notes represent bor¬

age

world—enemies .of. freedom .who

the

'■

from the sale of the bonds,,

pany

It

toward

those

,

and

years

to

.

erty

themselves

are

five

months

12

Of the net

is

our

;

,

prices scaling down-

turity.

age

our

that those who resist change, those
who
look
backward
instead
of

will

last

the

.

redeemable

are

104.98%

from

ward

at

company

%

,

for

107.33%

thereafter at

.

.

of

at

*

-

Dec. 7 at

cn

the
■

bonds

new.

to

"

•

awarded

to

cost

interest

an

of

4.95%

' *

,

were

competitive bidding

staid

governmental

chinery, responding to
of the

indus¬

even

begin to decline.

new

Our

mands.

electronics

as

the decade

tries—those
and

rise,

companies and

some

Science

on\labor-management

tively costly. On the other hand,

yield

to

The ' bonds

•

The

exciting time.

an

will produce

we

Research

100.827%

at

maturity.*"

tion that the decade of the Sixties

change. An axiom for

groups?

of course that

aware

bonds, 5% series, due 1995, priced

good deal about

a

horizons that must

tual trust and confidence between

individuals

licly $40,000,000 of Potomac Elec¬
tric
Power
Co.- first
mortgage

word.

in any way, equipped place in Asia, Africa, and Latin
knowledge, that I believe America. Here again, the outcome
research
could
produce, of the will only be known far in the
that

writing group which offered pub-*-

being done.

add

me

we

it

corrugated

Bonds Offered

•

materially.

really

we

of

causes

tudes

love

have

we

and

others.

What, for instance, do
know

forces

action

every

relationship with

our

■

Dillon, Read & Co., Inc.; Lehman
Brothers; Eastman Eillon, Union
Securities & Co.; Stone & Webster
Securities
Corp.;
and Johnston,
Lemon & Co. headed an underi.

work

sponsor

peaceful problems directly related to the
steel industry, but I would like to
to
both
close by suggesting some broader

of

solutions

the

steel in construction. For example,

development

acknowledge

to

Institute have found that such ar¬

of strife woulcKbe difficult and rela¬

future

Potomac Electric

po¬
that

rangements, with all the partners
pulling together for a common re¬
sult, can have a very beneficial

aimed at

percent of

lowest alloca¬

research and

steel has

States

hence.

made by any heavy industry. And
1958 was a low, low year for sales.
Now

con¬

$40 Million of

com¬

antagonism, and I submit

steel

the

inroads.

long-range

construction

for

that here too is another important

state of

mestically produced structural tion that
shapes, sheet and strip, pipe, wire, industry,

tion?

would

ment

of

United

recent

believe

sense

has I industry-wide
We
at
Stanford

deny

to

preciated
I

tions.

ahead,

for

progress,

leap-frogging

that

years

with

man

deliberately
way

that

less perpetual

more or

during the 1950's and about 55% agement relations has been done
of steel produced in the Western by the steel industry, and it is to
States.
Competition from
other be complimented on taking lead¬
construction
materials, however, ership in this field. But I do not

could

modern

mean.

business

the

competitive

also

I

eminent

associations

and

to live in

am

elements

what I

25%

in

re¬

panies to join together in groups

illustration.

a

Thursday, December 8, 1960

with the

illustrate

me

scientists who
Is

there

uses

New Uses for Steel
Let

Today we live in a period of
unprecedented change.
At this
very
moment,
90%
of all
the

•

new

serve

might be for steel.

sion construction

alive.

techno¬

new

this month for

ago

But

makes

firmly convinced that la¬
bor and management do not have

more

done

can

them,

it

year

possible

every

them in effective

has

faces, and the many opportunities
of which are as yet unex¬

—some

plored—to

find

to

It is this kind of

the

of

some

panies; research that might go out
businesses, to the steel consumers and attempt

these

all

is

It

how

place

sitions.

a

research

in

But

major prolonged

a

to

.

search emphasis on those develop¬
ments which are designed to keep

ended

methods

it will want to keep

Certainly
up

by

them

strike. We need look back only to
the 116-day steel shutdown which

I

the assertion that the steel indus¬

mently!)

well knows
dislocations that can

man

categorically

we

industry

caused

an

steel

a

This

painful

be

.

.

to

due

.100,

$90,000,000
bonds

4%

1964, priced at 99%.

20,

from

bonds

will

be

$150,000,000

of

the* sale

redeem

20,
1960, to repay short-term borrow¬
ings, and to provide funds for
lending operations. The offering
will
be
made
through John
T.
maturing

Dec.

Knox, Fiscal Agent with
manage¬

1962,

Feb." 20.

and
amount
of

sistance
group

of

a

nationwide

the

J

m

as¬

selling

of securities dealers.,

*

Volume

192

Number

6010

.

.

The Commercial and

.

Financial Chronicle

Indications of Current
Business Activity

The

Latest

AMERICAN IRON

Indicated

Equivalent
Steel

AMERICAN

STEEL

operations

and

42

gallons

Crude

runs

Gasoline

castings

tons)

(net

-Dec. 10

848.3

Ago

(bbls.

average

stills—daily

(bbls.)

average

1,468,000

(bbls.)
output (bbls.)

25

Nov'25
Nov| 25

;

oil

output

(bbls.)

oil

output

(bbls.)

Nov. 25

7,987,000
28,205,000

7,934,000

28,957,000

2,535,000

2,333,000

Month

13,367,000

13,138,000

12,956,000

12,904,00!

Intercity

5,717,000

7,040,000

186,815,000

179,179,000

*184,911,000

ASSOCIATION

(bbls.)

OF

at

Nov

_

(bbls.) at

—Nov

AMERICAN

freight loaded

Revenue

.

freight received from connections (no. of cars)—Nov.

CIVIL

ENGINEERING

25

37,099,000

36,833,000

36,626,000

175,741,000

175,327,000

178,924,000

(number

of

cars).

U.

S.

48,958,000

—Nov. 26

471,400

620,712

Private

494,099

r

1

and

'

.

OUTPUT

(U. S.

DEPARTMENT

STORE

SALES

SYSTEM—1947-49

$385,000,000

$613,400,000

$373,400,000

OF

172,700,000

365,300,000

165,200,000

AVERAGE

6,877,654

$34,690,675

$29,228,760

$28,411,635

139,631,117

187,953,217

118,193,423

42,475,204

49,787,508

—•———

110,697,692

128,576,090

95,341,970

—

92,307,520

104,943,572

104,772,998

38,435,408

212,300,000

248,100,000

208.200,000

153,200,000

167,600,000

79,400,000

1

38,800,000

94,900,000

40,600,000

394

CITIES—Month

INC.—217

————

——.

!—

„j,

—i_——
v-r-*,-

„

-

——

!

—

Central

:

—

ELECTRIC

ERADSTREET,

39,127,412

28,963,37*

132,712,983

125,197,846

$607,058,317

$710,764,950

$577,716,064

99,449,753

148,142,480

80,887,522

—

$507,608,564

$562,622,470

$496,828,542

——

149,176

137,083

tons)

128,182

104,070

216,711
201,641

20,612

33,013

15,047

Total
New

United

York

Total
Nov. 26

6,390,000

8,045,000

7,990,000

8,151,000

Nov. 26

355,000

377,000

385,000

445,000

COAL

States.

City—

outside

—

York

New

EXPORTS

Month

RESERVE

City—:

(BUREAU

MINES)—

OF

of September:

U.S.

100

Nov. 26

-,
.

*170

149

176

13,500,000

13,932,000

13,907,000

276

317

261

173

To

IRON

COMPOSITE

AGE

steel

(per lb.)

Electrolytic

„

refinery

refinery

Lead

(St. Louis)
(East St.

Aluminum

Straits

S.

6.196c

$66.32

$66.41

ton)

—Nov. 29

*

$28.50

$28.33

$29.50

$43.50

!

at

Nov. 30

29.600c

29.600c

29.600c

of

Nov. 30

28.200c

27.900c

26.725c

Bituminous

12.000c

12.000c

12.000c

at—

13.000c.

30

11.800c

11.800c

11.800c

12.800c

30

13.500c

13.500c

13.500c

13.000c

Nov!
Nov!

,

Louis)

(New

at.

—Nov

of

Month

Revenue

Number

30

13.000c

13.000c

13.000c

26.000c

26.000c

24.700c

102.000c

102.750c

103.250c

100.250c

86.26

86.11

87.63

81.43

All

FACTORY

ultimate

AVERAGE

BOND

YIELD

6

86.51

86.78

86.91

84.17

90.91

91.34

91.62

87.99

Durable

88.95

89.37

86.li

Nondurable

86.11

86.24

86.24

83.79

81.05

81.17

79.25

6

83.91

84.04

84.04

82.0!

Durable

Dec.

6

87.72

87.86

88.13

84.30

—Dec.

DAILY

6

87.80

88.27

88.81

86.24

All

6

3.96

Dec.

6

4.67

Dec.

6

4.35

Dec.

6

4.50

Dec.

6

4.70

4.69

5.10

Dec.

6

4.87

4.86

Dec.

6

4.58

4.57

L
„

Industrials

Group

NATIONAL

.

Group

Dec.

MOODY'S COMMODITY

3.99

3.80

4.65

4.64

4.32

4.30

4.56

4.49

4.46

4.70

4.69

4.88

5.09

5.25

4.86

5.02

4.55

4.R1

4.41

of

Unfilled

OIL,

6

355.8

4.85

.

.

-

,

4.54

4.50

LIFE

354.8

Total

261,948

283,461

299,841

309,245

318,032

at end

of

period

REPORTER

89

91

384,818

393,601

418,183

438,833

108.80

108.60

109.77

111.54

ACCOUNT

FOR

OF

2

Total

the

off

initiated

Gold

Other

sales

initiated

transactions

Total

the

on

Short

510,280

24,300

59,100

329,170

241,740

168,400

508,950

379,470

273,740

192,700

568,050

—Nov. 11

.

—

164,500

752,459

—Nov. 11

.—

—

AND

ON

N.

EXCHANGE

Customers'

other

total

sales—

shares—Total

2,956,480

2,283,162

New

2,239,425

4,185,105

Silver,

London

AND

ACCOUNT

1,432,734

1,263,670

ON THE N. Y.

STOCK

MEMBERS

$62,833,952

$93,652,438

1,191,602

1,283,326

1,094,297

1,502,830

Other

Total

25,638

23,109

9,686

22,367

1,257,688

1,071,188

$54,749,975

$76,890,597

324,570

381,220

295,800

32~4~,570

381,220

295! 800

374! 870

NEW
=

SERIES

—

U.

S.

(Per

13.000c

£94.935

£86.864

£86.622

£90.179

91.375c

91.375c

91.375c

79.500d

—

79.488d

80.250d

$2.81352

ounce)—

$2.81159

$2.80263

102.875c

—

103.319c

.

101.042c

$35,000

$35,000

$35,000

$209,000

$209,000

$216,611

32.590c

32.590c

32.590c

29.000c

29.000c

29.500c

29.500c

(per

29.500c

$82,000

$82,000

$77,000

—

$1.50000

$1.50000

$1.30000

grade

97%

—

$1.60000

$1.60000

$1.40000

$1.50000

$1.50000

$1.75000

—

—

pound)
delivered

pound,
small lots)

pound,

Cobalt,

ton

lots)

pound)

(per

29.000c

561,210

526,670

483,990

grade

grade primary

684,170

853,050

574,790

Bismuth

of

13,131,790

13,534,680

10,823,940

figure.

primary,

13,987,730

11,398,730

1957.

freight

tEstimated totals based

of

95%

secondary

^Domestic five

from

East

tons

ttAverage of daily
London

of

MONEY IN

OF

As

'

of

Metal

or

Louis

St.

session

16,941,290

26.000c

26.800c

23.250c

24.700c

74.000c

74.000c

$2.25

$2.25

$2.25

;—-!

included,

16,195,860

14,147,660

26.000c

lb.)

(per

avge.

pig

pound)—

(per

where

745,430

weighted

——

♦Revised

1,015,870

ingot

**Nickel

23.250c
74.000c

99%
99%

-Nov. 11

96%

DEPT.

'

190):

13.500c
£87.911

Aluminum—

Nov. 11

PRICES,

(per

374,870

—Nov. 11

LABOR—(1947-49

12,500c

13.000c

13.500c

ounce)

(per

(per

Cadmium

end of

sales

York

refined

1,493,144

$57,868,032

—Nov. 11

sales

WHOLESALE

and

Platinum,

STOCK

.

£72,390

13.000c

York, boxed (per pound)
Laredo, bulk (per pound)
Laredo, boxed (per pound)

TRANSACTIONS

—

£68,679

£87.636

j(per pound)—

fINew

(SHARES):

Sales—

12.800c

£72,146

Antimony—

Total round-lot sales—

"Short

delivered

(per ounce U. S. price)
Quicksilver (per flask of 76 pounds)—

1,828,308

$64,438,473

—Nov. 11

SALES

ROUND-LOT

OF

1,446,667

$67,541,044"

1,169,235
$56,966,684

Nov. 11

STOCK

ton)

long

(per

Sterling Exchange (check).
Tin, New York Straits
L<*

Nov. 11

Nov. 11

11.800c

£67,250

Sterling Exchange—

Silver,

2,983,457

Sales—

TOTAL ROUND-LOT

—

ttLondon,

3,380,559

purchases by dealers—Number of shares

13.000c

11.800c

£68,176
£68,875

ton)

long

Silver

4,023,180
616,220

sales

FOR

3,150,144

,

:

£241,381

12.000c

pound)

(per

3,568,885

Nov. 11

-

sales—

£224,071

12.000c

prompt (per long ton)_—:
—
three months (per long ton)—„—

402,630

Nov. 11

———

£226,347

ton)

Gold

sales

—,

Louis

(per

§§Prime Western,

1,836,795

Other

EXCHANGE

1,006,553

sales)—

by dealers—

£250,583

pound)—!—-—*
(per pound)-——

(per

London

Louis

St.

East

868,745

473,475

months*

597,550

Short

Round-lot

St.

2,385,907

———Nov. 11

value-

of

394,455

658,907

..

—

30.481c

——.

ton)
long

27.111c

£222,232

Zinc-

519,497

COMMISSION

sales—

Number

East

prompt

719,200

—«—--Nov.il

(customers'

orders—Customers'

sales

York

2,661,359

Nov. 11

dealers

(per

34,060c

27.470c

£225,631

"

;

shares

short

Dollar

ttThree

137,810

79,020

long

(per

30.598C

29.600c

*

——.

pound)

London

New

Common,

(customers' purchases)—t

Customers'

Round-lot

Common,

STOCK

Y.

*18,460
*33,411

'

pound)

(per

(per

prompt

months,

Nov. 11

value.——!__——

of

ttThree

Nov. 11

SPECIALISTS

SECURITIES

by dealers

purchases by

Number

139,410

—

114,3»1
1,857,027
25,937
20,343
28,874

Lead—

864,570

477,612

—-

_.

-

refinery

Nov. 11
.

17,672
30,180

„

.

ttLondon,

U

DEALERS

Dollar

688,970

587,959

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

Odd-lot

710,684

-Nov. 11

Sales

of

J

*90,879

(89

QUOTATIONS)—

J.

M.

&

refinery

ttLondon,

-

account of members—

sales—

Number

Export

Nov. 11

Sales

Other

sales

2,610,500

Nov. 11

Short

EXCHANGE

1,573,250

199,300

*

tons).

(E.

Copper—

ttLondon,

—

purchases

LOT

2,050,810

32,000

—

Total round-lot transactions for

Odd-lot

2,248,630

257,340

sales

Total

Domestic

Nov. 11

sales——

Total

2,191,190

Nov. 11

—_—

Sales

Other

2,648,330
419,310

!

*153,163
*2,460,567

97,879

$5

November:

299,310

.

$5,900

175,374

,

ounces)-

short

1,273,940

floor—

purchases—

Total

1,606,250

(in

426,140

50,300

;

560
966

MINES)—

OF

ounces)

fine

PRICES

1,624,670

318,310

.——.—1

sales

Total

2,010,170

Nov. 11
—

—

569

1,017

2,529,765

(BUREAU

fine

(in

504,400

Nov. 11
.*

—

$3,963

550

1,031

September:

(in

1,744,230

-

.

$4,314

Sept.

:

Copper (in short tons)
Lead
(in short tons)

Nov. 11

Sales-——

2.02

States—

Nov. 11

floor

purchases———

Short

Other

of

United

Nov. 11

transactions

2.09

$5,585

Zinc

2,121,150

of

—.

OUTPUT

METAL

-—

2.09

—1

PURCHASES—INSTITUTE

—

Month

MEM¬

—_i._

—

2.36

Minp production of recoverable metals in the

registered-

sales

Total

-

which

Nov. 11

—!___

Sales
sales

Other

stocks in

in

r< t

$2.21

2.46

$4,004

goods

INSURANCE—Month

—

Silver

Dec.

1,

$2.30

2.46

—

Total

1

INDEX—

i

$2.31

_.

—

Industrial

91

—Nov. 26

*

PRICE

39.5
-<■

goods

LIFE

Group

310,853

81

purchases.

Other

40.9

39.9
39.0

(000,000's omitted):

275,752

270,596

100

specialists

Short

40.3

39.5

39.6

38.9

-

_

Ordinary

376.2

Nov. 26

TRANSACTIONS
of

Vl>Iti

40.2

—.—

-

in

earnings—

INSURANCE

OF

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

9652
79.79

1 <1 11

4.69

355.8

.

Nov. 26

DRUG
=

98.15

81.51

—

„.

._

manufacturing

METAL

.

(tons)

AND

AVERAGE

ROUND-LOT

Dec.

activity

orders

PAINT

1949

$89.06

98.89
81.30

—

_

goods

Nondurable

*

4.57

Nov. 26

.

_

(tons)

Percentage

$90.85

—

—

goods

Durable

ASSOCIATION:

(tons);

Production

6

INDEX

PAPERBOARD

Orders received

$91.48

OF

DEPT.

S.

,

Hourly

v
_———

,

Group

Utilities

U.

—

October:

manufacturing

All

Dec.

—

Public

58,067,246

Hours—

AVERAGES:

.

A

58,163,340

'

.

Railroad

of

53,658,261
$906,896,000
57,037,919

31—

Aug.

goods

Nondurable

„

corporate

—

at

55,320,637
$936,843,000

goods

6

5.13

Aa

57,513,402
$967,782,000

HOURS—WEEKLY

manufacturing

Dec.

Government Bonds

—

customers

ESTIMATE

6

80.69

Aaa

1,805,000

earnings—

—Dec.

Group.

Public Utilities Group—
Industrials Group —

Average

34,921,000

1,518,000

of

—.——

EARNINGS AND

LABOR—Month
6

1

S.

34,165,000

1,615,000

consumers—

*

of

Weekly

Dec.

.—p.——*.*«**.—.———f

ultimate

(000's omitted)-;
,
customers—Month

12.500c

26.000c

Nov. 30

f

to

sales

ultimate

August

Dec.

_4.

U.

34,805,000
._

INSTITUTE—

August

from

Dec.

MOODY'S

——

MINES)—Month

OF

and lignite (net tons)anthracite (net tons)

Kilowatt-hour

PRICES DAILY AVERAGES:

corporate

Railroad

tons)

46

coal

ELECTRIC

Nov. 30

at

York)

EDISON

29.025c

Nov. 30

at

„

A

(net

(BUREAU

336

———

October:

88.81

Aaa

23

tons)

(net

tons)—

(net

COAL OUTPUT

33.225 c

Government Bonds

Average

America

Asia

(net

tons)

(net

Pennsylvania

(primary pig, 99.5%) at

tin

MOODY'S BOND

U.

6.196c

$66.32

at

(delivered)

Zinc

6.196c

$66.32

at

(New York)

Lead

/ tZinc

6.196c

Nov. 29

1

M. J. QUOTATIONS):

(E. &

South

America

Central

and

copper—

Domestic

Export

Nov. 29

.

(per gross

Europe

Undesignated

(per gross ton)

Scrap

North

To

PRICES:

steel

Pig iron

METAL PRICES

290

____

Finished

-

1

/-

&

DUN

—

14,368,000

Dec.

INDUSTRIAL)

3

To

To

Dec.

INC._

39,157.455

26,353,298
—w.

70,600,000

INSTITUTE:

Electric output (in 000 kwh.)_
FAILURES
(COMMERCIAL
AND

37,677,358

117,187,705

;
—

-

EDISON

&

DUN

—

exports of Pennsylvania anthracite (net
tons)

150,000,000

173,500,000

INC.—

by

,

VALUATION

PERMIT

Pacific

MINES):

=

6,912,412

transport

233,400,000

1

Dec.

INDEX—FEDERAL

7,008,078

43,715,106

freight

Central

South

$383,400,000

1

__

BUREAU

36,199

tons)

Atlantic

West

1

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

.•

(in

Central

East

*

t.

Dec.

—

21,662

September:

general

Atlantic

South

531,431

Dec.

;

,

municipal

Federal
COAL

Dec.

construction

State

2,284

22,900

Mountain

construction

Public

4,265

TRUCKING ASSOCIATION,
of

England

Middle

1

1

2,061

undelivered

and

of October:

574,22f

517,410

567,299

472,828

26

Dec,

2,722

5,885

4,632

cars

order

on

BRADSTREET,
New

56,189,000

49,917,000

47,963,000

1

CONSTRUCTION—ENGINEERING

construction

Ago

month)—

BUILDING

NEWS-RECORD:

Total

Year

Month

delivered

cars

cars

carriers

170,886,000

25

of

AMERICAN

31,692,000

25

(end

RAILROADS:

Revenue

Previous

INSTITUTE—

7,973,000

27,968,000

3,269,000

187,906,000

6,968,675

CAR

freight

new

of

3,108,000

25

oil

for

118,092,000

6,038,000

oil

of that date:

October:

freight

28,776,000

6,257,000

fuel

Orders

6,821,410

25

fuel

2,732,000

of

6,968,160

-—Nov!

Residual

RAILWAY

Month

6,992,460

Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline
(bbls.) at
Nov.
Kerosene (bbls.) at—.
Nov.
Distillate

are as

Latest
AMERICAN

Backlog
Nov

output

fuel

*1,393,000

of quotations,

cases

either for the

are

Month
96.5

of
Nov. 25

fuel

§1,376,000

in

or,

Ago

51.5

♦48.9

New

output—daily

each)
to

Kerosene

Residual

Week

Dec. 10

that date,

on

production and other figures for the

cover

Dates shown in first column

Year

INSTITUTE:

condensate

Distillate

;

month ended
Month

,1

and

PETROLEUM

oil

capacity)

cent

Previous

Week

INSTITUTE:

(per

or

month available.

or

to—

ingots

Crude

AND

Steel

following statistical tabulations

latest week
week

31

(2307)

mean

on

reports from companies accounting for

tin consumption in
more

but less than

exceeds

1957

and

carload

**F.o.b.

0.5c.

97%

of total stocks
§§Delivered

lot boxed.

Fort

Colburne,

U.

S.

duty

and bid and ask quotations per long ton at morning

Exchange.

CIRCULATION—TREASURY DEPT.

Sept.

30

(000's

omitted)

■_

$32,000,000

$32,000,000

.$31,800,000

$3,243,000

$3,259,000

$3,378;000

*

Commodity Group—

NEW

commodities

All

Farm

Nov. 29

i

products

119.6

*119.6

119.4

All

foods

commodities

—Nov. 29

other

than

farm

and

foods

89.7

90.3

88.6

84.9

—-Nov. 29

—

As

118.9

109.2

108.9

108.8

105.2

97.5

Processed

96.4

95.9

89.7

127.8

*127.8

127.9

128.6

Nov. 29

YORK

of

Member

firms

Total

,* Revised figure.
([Includes 899,000 barrels of foreign crude runs.
§Based on new annual capacity of 148,570,970 tons
of Jan. 1, 1960 as against Jan. 1, 1959 basis of 147,633,670 tons,:
tNurtiber of orders not reported since introduction of
Monthly Investment Plan.
JPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceed;

*

one-half

cent

a

pound./




-

.

t

•-

.

on

1

(000's

to

hand and
customers'

Market

value

of

Market

value

of

Member
-

„

EXCHANGE—

omitted):

carrying margin accounts—*
net
debit balances.

extended

Total of
as

31

customers'

Credit
Cash

STOCK

October

banks in

free

listed

listed

borrowings

.Member borrowings

on

U.

bonds

-

shares.r—,——
S.

Govt, issues—

122,000
356,000

360,000

1,063,000

S

credit balances—

U.

168,000

111,000
377,000

customers

in

1.059 000

966 000

109,858,783

110,100,163

281,529,166

283,318,365

695,000

684,000
2,325,000

-

on.othar-collateral!.—r*2,313,000

.

106,898,984
,

295,165,327
523,000

2,289,000,

!

•BiibiiiZri':>

*#»*<»»

32

*»W

»!•'

I

The Commercial and Financial Chronicle

(2308)

.

.

Thursday, December 8, 1960

.

ADDITIONS

* INDICATES

Securities

Now

in

Registration

NEW ISSUE CALENDAR
NOTE—Because

of the large number of issues

index and in

the

(Milton

Blauner

D.

Inc.

Co.,

&

December 12

Baruch (R.)

offering dates.

and

(R.

L.

Lee

Inc.)

Co.,

(Eastman

Common

__

Baruch

&

Co.)

$200,000

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 in units, each unit to consist of two common
shares, one series I 5-year purchase Warrant, and one
5-year series II warrant. Warrants are exercisable ini¬
tially at $2 per share. Price—To be supplied by amend¬
ment. Proceeds — For 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.

(Bids

Cook

Coffee

Inn, Inc.
Nov. 21, 1960 (letter of notification)
a maximum of
44,440 shares of common stock (no par) not to exceed
$300,000 to be offered for subscription by holders of

of

$6.25

Office

a

minimum

Proceeds — For working capital.
S. Bellevue Boulevard, Memphis, Tenn.
James N. Reddoch & Co., Memphis,

29

—

Underwriter

the basis of one new share for each

Price—At-the-market, and

share.

per

(H. L.

—

Armaments, Inc.

on

common

the basis of one Aircraft share for each

8

supplied by amendment.

Business—The

issuer, wholly owned by UIC, is engaged
applied research and development in various technical

fields and works largely for the Department of Defense.

Office—Cockeysville, Md. Underwriter—Eastman Dillon,
Union Securities & Co., New York City (managing).
Offering—Indefinitely postponed. .Note—This statement
is expected to be withdrawn.
All

American

Co.
Sept. 27, 1960 filed 85,918 shares of common stock (par
10 cents), to be offered to holders of the outstanding
common

each

Engineering

of record Nov. 22

held

shares

four

on

the basis of
with

rights

one new

(C.

to

—

Inc.) $300,000

Towbin

High Point Ski Ways,
(Osborne,

Koeller Air

Clark

(Lloyd

shares

50,000

Inc

&

..Common

Van

Inc.)

Buren,

—Units

Canaan

Morris

&

Inc.)

Co.,

&

Co.)

Peabody

Francis

United

I.

States Shell

&

Co.;

Pont

du

&

shares

Co.)

&

&

Co.

25,000

„.Units

units

-Common
$300,000

Stores, Inc.

406,000 shares

Corp

(Bids

127,845

shares

School

Co., Philadelphia, Pa. (managing).
Offering—ExpectedJn January.

Allen, McFarland & Co.
Sept. 8, 1960 (letter of notification) 120,000 shares of
common stock (par 10 cents) and 30,000 shares of com¬
mon stock
(par 10 cents). Price—Of 120,000 shares, $2
per share; of 30,000 shares, 75 cents per share. Proceeds
markets

in

selected

securities

for

and

working capital. Office —1120 Connecticut Ave., N. W.,
Washington, D. C. Underwriter—Allen, McFarland & Co.
Offering—Expected in early January.
Allied Bowling Centers, Inc.
Dec. 29 filed $750,000 of sinking fund

and

300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
•tock. Price—$108 per unit. Proceeds—For general cor¬
porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc.* Dallas. Note — This
offering has been postponed.
Alloys Unlimited, Inc. (12/15)
Oct. 14, 1960 filed 135,000 shares of common stock
(par
100), of which 75,000 shares are to be. offered for the
Continued

on

page

33

Joseph

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leaders say they read most frequently. This fact was
brought
out by a 1959 survey of
corporate officers and executives

Directory".

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Harris

Co.,

&

$279,999

Inc.)

(Tuesday)

Coral Aggregates Corp
(Peter Morgan

Palm

Limited

(David Barnes

December 30
Controls
and

—Common

...

and Robinson & Co., Inc.) $400,000

& Co.

Developers

&

^——.Common
$300,000

Inc.)

Co.,

(Friday)
Common

Corp

L.

Walker & Co.;

Sherman

D.

&

Co.)

L. C. Wegard & Co.
$285,000

Co.—

&

(Merrill

Lynch,

Revlon, Inc.

Pierce,

Rothenberg, Heller & Co. and
Co., Inc.) $225,000

Fenner

Preferred

Smith,

&

Inc.)

shares

100,000

(Wednesday)

Chicago, Burlington & Quincy RR—Equip. Tr. Ctfs.
received")

$8,550,000

National Aeronautical Corp.—
(White,

Weld

—Common
Biddle

December

15

January 10
(White,

Common
130,000 shares

American

&

...Common

Brooks

Zelff

(James)

..Common

Inc.)

Goldman,

Haas

Co.)

&

(Bids

&

(Merrill

Lynch,

Pierce,

$500,000

(M.

H.

Smith,

Inc.)

$2,000,000

..Common

155,000 shares

..Common
Co.,

&

Selected

Ltd.;

Karen

Investors)

Securities

Investments,

Inc.)

Corp.

and

(Pacific

Coast

Securities

Swingline, Inc....

Co.)

Inc.)

Co.,

$300,0Q0

Patrician Paper
(Hill,

Common

Co,)

$300,000

—Capital

4,000,000

shares

&

(Bids

Inc.)

$625,000

Co., Inc
&

.Units
Grimm)

8,000

.Debentures
$3,250,000

Corp
Co.,

Common

Inc.)

(Tuesday)

$299,950

*

11:00

Bonds
EST)

a.m.

$7,000,000

to

be

—

received)

—Common

$11,500,000

by; Bache

Co.)

&

&

Common
Inc.)

Co.,

$4,125,000

January 23

—

General Bowling Corp.——
(H.

S.

Simmons

Co.

&

—

Inc.)

Living Aluminum, Inc
(Arnold Malkan & Co., Inc. and.Sulco

——Common

Co., Inc. and McMahon,
Co.) $1,000,000

Lichtenfeld

s

&

—Common

/„

—

H.

Stern

&

Co.)

$300,000

January 24 (Tuesday)
(Bids

to

be

February 15

March 15

-

&

(Monday)

received)

Bonds
$6,000,000

to

$8,000,000

(Wednesday)

Chesapeake & Potomac Telephone Co.—

$500,000

(Monday)

Harris

(Wednesday)

New York Central RR.____E^uip. Trust Cifs.

units

,

G.

Co

Inc.)

Burr,

Otter Tail Power Co.^

Cove Vitamin & Pharmaceutical Inc.—
—Units
(Hill. Thompson-& .Co.,,,IncJ 54,000 units

Davos, Inc.

Fibre

$300,000

stockholders—underwritten

to

(Bids

19

Common
Co.)

Security National Bank of Long Island___Common

Jouet, Inc.

Class A

Co.,

Resisto Chemical, Inc.,——

December

—Common
$300,000,

Gulf States Utilities Co.—

(Friday)

Treat

Inc.)

Kansas Gas & Electric Co

(Edward

Co., Inc

Darlington

(Amos

Co.,

250,000 shares
—

Treat

Common
$160,000

(Salomon Bros. & Hutzler and Halsey, Stuart & Co., Inc.)

and H. S. Simmons &

Peabody & Co.)

(Amos

January 17

&

Class A Stock

—

Valdale Co., Inc

Pathe Equipment

&

(Blaha

January 18
Units

$250,000

(Paine, Webber, Jackson & Curtis)

N. Rubin & Co.

shares

97,371 shares

———

&

150,000

Capital

Corp.
(Blaha

(Coffin

(Offering

$1,500,000

Stancil-Hoffman Corp
Statmaster

&

Crandall

B.

Chemical

Penobscot

$210,000

Preferred Risk Life Assurance Co.———.Common
(Preferred

Inc.)

—J.

(Bids

Inc.

Meyerson

———Capital
Stetson,

^

(Alessandrini

——Debentures

Mortgage Guaranty Insurance Corp.,.
Polysomes,

$10,000,000

(Monday)

Radar Measurements

shares

180,000

&

&

Inc.

(H.

Common

—_

Inc.—
Fenner

Brothers

Bonds
CST)

a.m.

(Berner Bros, and Earl Edden Co.)

_.r.Common

Co.)

10:00

Cohu

January 16

Freoplex,

Frisch's Restaurants, Inc
(Westheimer

Lehman

$25,634,000

Lee Communications Inc

Company, Inc.) $300,000

Carolina Metal Products Corp..

Marsh Supermarkets,

Debentures

by

Co.)

Co.—

Tube

(Winslow,

Common

—

(Arnold, Wilk.ens & Co.)

&

Iowa Power & Light Co

—Units

$450,000)

Chemical Co..——
(Sandkuhl &

Sachs

Datamation, Inc.

$240,000

& Co. Inc.——

(Lloyd

Brothers

Co.,

&

shares

shares

Arway Manufacturing Corp..
(Stern,

600,000

___

Peerless

150,000

Common

—

and Goldman Sachs & Co.

Brunswick Corp.
(Offering to stockholders—underwritten
and

shares

Co.)

__—.Common
shares

136,000

(Wednesday)

January 11

Cryogenics, Inc.——...Common
(Courts

••

(Tuesday)

Weld & Co.

(Newburger, Loeb & Co. and C. E. Unterberg, Towbin Co.)
125,000

Co.)

&

Books, Inc

(Thursday)

Alloys Unlimited, Inc.——

r.

(Monday)

January 9

Pocket

and

Co.

&

60,000 -shares-•

Co.u Inc.)

o.jJ

Uit

Yarnall,

Co.;

&

$25,000,000

1

__—

(Lehman Brothers and Reynolds & Co., Inc.)

Common

,

Peabody & Co.)

(Kidder,

(Schwabacher

Public Service Electric & Gas Co._

(B.

Mid America's most

Nadler

December 16

The

listed in Dun and Bradstreet's "Million Dollar

shares

__Common

___

(Cortland Investing Corp.;

(Kidder,

FREQUENTLY!

$4,500,000

(Friday)

G.

(B.

January 4

_Class A

„

150,000

Westminster Fund, Inc.———

READ MOST

23

December

(Wednesday)

Designatronics, Inc.

(B.

TH

14

(Bache & Co.)

debentures

—-Debentures

.—

Bell Electronic Corp.——.

December

derwriter—Drexel &

maintain

Co.)

57,986 shares)

Co.)

$299,600

Brothers)

(Lehman

(Bids- to^be

Manufacturing Corp
&

&

Inc.—--——---Capital

Fuller & Co.)

Co., Inc.——

$7,755,000

Common

duPont

Securities

Union

D.

Midland-Guardian

(Equitable Securities Corp. and Kroeze, McLarty & Co.)
100,000 shares

(Francis I.

shares

161,573

(Wednesday)

and

Pictures, Inc.—

Still-Man

(S.

Debentures

Equip. Trust Ctfs.

EST)

received)

be

to

Dillon,

(Eastman

Common

.v.

.

noon

Common
shares

60,000

Co.)

..—Common

(Rodetsky, Kleinzahler,

(Equitable Securities Corp.)

Electronics

(Bids

Circle

(Tuesday)

Holiday Inns of America, Inc
Loral

$2,000,000

Co.)

&

Corp

December 21

Common

(Merrill Lynch, Pierce, Fenner & Smith, Inc.)

December 13

Gas

December 27

Vector Industries, Inc.—

Winn-Dixie

Fuller

D.

D. Fuller &

and

$12,500,000

(Plymouth Securities Corp.)

Common

$750,000

Inc.)

Co.,

International Mosaic Corp.——----—-—-Common

Homes, Inc.———

Stone

United

.Common

Bache

Co.)

&

$202,000

80,000

United International Fund Ltd
(Kidder,

-

—Common

$5,100,000

Co.)

Burnside

E.

(S.

(S.

Ritter

——Class A

Rothschild

P.

(Willis

————Units

„—

(L.

$564,900

Co.)

Inc.-

&

South Central Natural Gas Corp.-——

Common

$300,000

Co.)

Co...._

(Gidden,

Pall Corp.

James

(Drexel

snares

————Common

Investors

Equity Fund,

Geotechnics & Resources,

$200,000

Long Island Plastics Corp.—
New

300,000

Inc.)
—

California-Pacific Utilities Co.„—_—-.Common

$300,000

—

Securities)

...Common

Corp.

Co.,

&

Coast

(East

Drexel

—Common

Co.)

Products, Inc.—

—

;

Wright & Co.,

Unterberg,

E,

Schramm

(S.

Chematomics, Inc.

Speedry Chemical Products, Inc

shares

share

expire on
Dec. 7.
Price
To be supplied by amendment.
Busi¬
ness—The firm is engaged primarily, under governmentsponsored contracts, in research, development, and .man¬
ufacturing activities related to the aircraft, satellite, and
missile fields.
Proceeds
For general corporate pur¬
poses.
Office—Du Pont Airport,-Wilmington, Del. Un¬

—To

Common
.Common

(Tuesday)

International

Common

—

100,000

Louisville & Nashville RR

UIC shares held. Price—To be

for

Co.)

Peabody & Co.;
Lehman Brothers
Model, Roland & Stone) $5,000,000

Aircraft

$300,000

Speedry Chemical Products, Inc.----—Debentures

$35,000,000

...

&

(Kidder,

Sept. 26, 1960 filed 265,500 shares of common stock, to
be offered by United Industrial Corp. to holders of UIC

in

EST)

a.m.

Sachs

Geophysics Corp. of America

Tenn.
•

11:30

(Hayden,

Benbow

on

—Common

-

French, Inc.)

jbricke &

Moyer,

(Equity Securities Co.)
$264,900
Wilier Color Television System, Inc.(Equity Securities Co.) $242,670

—Bonds

—

Does-More Products Corp.—————Common

—

Washington, D. C., is no longer underwriting. H. P. Black
& Co., Washington, D. C., will handle offering.

stock

Co..

Co——.

(Goldman,

—

five shares held.

$50,000,000

Common

Power

(The

1960 (letter of notification) 100,000 shares of
common stock (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.
Underwriter
American Diversified Securities, Inc.,

common

Co.)

&

Corp.

Consumers

Inc.

Aug. 29,

Admiral

Securities

(Jay W. Kaufman & Co.) $400,000

Electronics Corp.

Adler Built Industries,

Union

Dillon,

Chemtronic

•

(Woodcock,

Canaveral

Beneficial Finance Co..^———.Debentures

ACR

Co.

Tele-Tronics

December 20

(Monday)

& Co

,

M.

shares

100,000

the accompanying detailed

expectations of the underwriter
general, to be considered as firm

not, in

are

(Friday)

Gremar Manufacturing Co., Inc.—..Common

items reflect the

but

REVISED

ITEMS

Telephone & Electronics Corp
December 9

SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown

awaiting processing by the

in

•

ISSUE

PREVIOUS

SINCE

Common

$250,000.

Common
Securities, Inc.) $300,000

2:30

p.m;

EST)

(Wednesday)

-

Rochester Gas .& Electric Corp
V
(Bids to be received) $15,000,00d

June 13

(Tuesday!

to

be

received)

JBonds

-

Virginia Electric & Power Co.—
(Bids

Bonds

$20,000,000

$30,000,000

td

.—Bunds
$35,000,00$

Volume

192

Number

Commercial and Financial Chronicle

The

6010

Continued from page 32
account

and 60,000 shares for the ac¬
count of the present holders thereof. Price—To be sup¬
company

plied by amendment.
tures certain

Business—The company manufac¬

components for such semiconductor devices
Anelex

silicon

as

and germanium transistors, diodes and recti¬
Proceeds—For general corporate purposes includ¬

fiers.

ing debt reduction.

Office—21-01 43rd Ave., Long Island

City, N. Y. Underwriters—Newburger, Loeb & Co. and
C. E. Unterberg, Towfcin Co., New York, N. Y.
it Altamil Corp.
Nov.

30, 1960 filed 251,716

mon

stock. Price—To

ness

—

The

be

outstanding shares of

com¬

supplied by amendment. Busi¬

manufacture

and

sale

of

large

machined

structural

components
and
stainless
steel
sandwich
panels for use in military and commercial aircraft and
missiles. Proceeds—To selling stockholders. Office—225

Oregon St., El Segundo, Calif. Underwriter—None.
American Consolidated Mfg.
Co., Inc.
Sept. 27, 1960 (letter of notification) 39,500 shares of
common stock
(par 33V3 cents). Price — $5 per share.
Proceeds
For advertising and promotion and accounts
receivable. Office—835 N. 19th St.,
Philadelphia, Pa. Un¬
derwriter—Martin, Monaghan & Mulhern, Inc., Ardmote,
—

Pa.
•

Ampal-American Israel Corp.
filed $5,000,000 of 7-year series I 6% 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.
Oct. 25, 1960

the

of

(2309)

,

■'

Nov.

65,000 shares of common stock, of
subject to purchase on exercise of
warrants and 10,000 were issued to Putnam &
Co., Hart¬
ford, Conn. Price—The 55,000 shares are issuable on ex¬
which

55,000

ercise

American

Cryogenics, Inc. (12/15)
1960 filed 150,000 shares of common stock (par
50 cents). Price—To be supplied by amendment. Busi¬
ness—The company and its subsidiaries make and sell
liquid and gaseous nitrogen and oxygen, dental and

are

warrants

of

from

at

$16 to $17.50 a share; The
10,000 shares are owned by Anderson-Nichols & Co., and
are subject to purchase under
options by three individ¬
uals at $7.50 a share. Business—The
design, develop¬
ment

manufacture

and

of

high speed printers and high
readers for use with computers and
processing systems. Proceeds—To work¬
ing capital. Office — 150 Causeway St., Boston, Mass.
Underwriter—None.
speed

•

tape

paper

electronic

data

Oct.

26, 1960 filed $4,000,000 of 6% convertible subor¬
debentures, due Dec. 1, 1975. Price — At par.
Business—Management of long-term risk capital invest¬
ments in gas, oil, and real estate ventures, and also in
dinated

funds.

capital,

and

Proceeds—For

to

buy

a

debt

small

oil

reduction,
producing

working
company.

Office—523 Marquette

Ave., Minneapolis, Minn. Under¬
writers—Paine, Webber, Jackson & Curtis, New York
City and Piper, Jaffray & Hopwood, Minneapolis, Minn.
Offering—Expected in late December.

medical

equipment, and various other gases and cylin¬
Proceeds—About $1,300,000 for expansion of pro¬
facilities including the purchase of equipment,

ders.

duction

with

the

balance

for working capital.
Office — New
Road, Augusta, Ga. Underwriter—Courts &
Co., Atlanta, Ga. (managing).
• American Educational Life Insurance Co.

Savannah

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
consist of 4 shares of class A stock and one share of class
stock. Price—$25 per unit. Business—The
writing of

B

life insurance and allied lines of insurance. Proceeds—
For capital and surplus. Office — Third National Bank

Bldg., Nashville, Tenn.
• American
Heritage Life Insurance Co.

Business

—

trays.

Office

Manufacturers of plastic table cloths, mats,
general corporate purposes.
Utica Avenue, Brooklyn, N. Y.
Under¬

Proceeds—For

1041

—

writer—Stern, Zeiff & Co., Inc., New York, N. Y.

stock.

23, 1960 filed 107,317 shares of outstanding capital
Price—At the market. Business—The acquisition,

exploration and production of oil and gas. Proceeds—To
selling stockholders. Office—1410 Bank of the Southwest

Bldg., Houston, Texas. Underwriter—None.

tshare for

each eight

shares held with rights to expire on Dec. 14 at 3:30 p.m.

(EST). Price—$6.50 per share. Business—The company
writes ordinary life, group life, and group accident and

ca

and

their members.

Price—$2

per

share. Business-

Provides

with

Nov.

corporate purposes.
Office—218 ,West Adams St., Jacksonville, Fla.
Under¬

writers^—Merrill

Lynch, Pierce, Fenner & Smith
City, and Pierce, Carrison, Wulbern,
Jacksonville, Fla. (managing).
'
York

Income

Life

Insurance

Inc.,
Inc.,

required by law and to

carry

011

be

Proceeds—For
general corporate purposes. Office—5th and Franklin,
Waco, Texas.
Underwriters—Ladenburg, Thalmann &
Co. and Lee Higginson Corp., both of New York City
(managing). Note—This stock is not qualified for sale in
supplied

by

amendment.

New York. Statement effective Nov. 9.
American Mortgage Investment Corp.
April 29 filed $1,800,000 of 4% 20-year collateral trust
bonds and 1,566,000 shares of class A non-voting com¬
mon stock.
It is proposed that these securities will be
offered for public sale in units (2,000) known as In¬
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
carry

them

until

market

conditions

are

favorable

for

disposition. Office — 210 Center St., Little Rock, Ark.
Underwriter—Amico, Inc.
American

Playlands Corp.
Aug. 22, 1960 filed 300,000 shares of common stock. Price
—$4 per share. Business—The company intends to oper¬
ate an amusement and recreation park on 196 acres of
land near 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. Offer¬
ing—Imminent.
American

Sept.

1960

7,

class

A

Recreational

(letter

common

Development Corp.
of notification) 100,000 shares of

stock

(par 10 cents). Price

—

$3

per

share. Proceeds—For expenses in constructing and oper¬

ating recreation centers. Office — 210 E. Lexington St.,
Baltimore 2, Md. Underwriter—Investment Securities Co.
of

Maryland, Baltimore, Md.
American &

Jan.

Lawrence

St.

27 filed 538,000

350,000 shares

are

shares of

properties,

Office—60
A. J.
•

E.

and

42nd

Price—$3

per

mortgages, develop and im¬

acquire

additional

real

estate.

St., New York City. Underwriter—

Gabriel Co., Inc., New York City.

Americana

Properties,

Inc.
27, 1960 filed 100,000 shares of common stock.
Price—$6 per share. Business—The operation of shop¬
ping areas and bowling establishments in Long Island,
Oct.

N. Y.
stores

30,

Concessions

Proceeds—For debt reduction and construction of
and a bowling facility.
Office — 855 Montauk

Office

5000

—

Hollow

Brush

working

cap¬

Rd., Westbury, N. Y.

Underwriter—None.
•

Avery Adhesive Products, Inc.
18, 1960 filed 250,000 shares of common stock (par
of which 100,000 shares are to be offered for the
account of the company, and 150,000 outstanding shares
are to be offered for the account of selling stockholders.
Price—To be supplied by amendment.
Business—The
manufacture of pressure-sensitive labels.
Proceeds —
Approximately $1,080,000 will be used to redeem the
outstanding 5% preferred stock, and the balance will be
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 early January.
Nov.

$1),

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
-

company.
concerns

limit

of $800,000 to

prise.
D. C.

-

Proceeds—For investments in small business
in avionics and related fields, with a proposed

Office

—

be invested in any one such enter¬
1000 - 16th Street, N. W., Washington,

Underwriter—S. D. Fuller &

Co., New York City.

Offering—Temporarily postponed.,
Bal-Tex Oil
June

Finance Co.

1960

filed

(12/12-16)
$50,000,000 of 20-year

debentures.

ing company with subsidiaries engaged primarily in the
small

loan

and

sales

finance

business. Proceeds—To

be

the

to

general funds for the reduction of shortterm bank loans. Office—50 Church
St., New York City.
Underwriter—Eastman Dillon, Union Securities & Co.,

New

York

City

(managing).

Bonneville

Manufacturing Co.
Oct. 24, 1960 (letter of notification) 32,000 shares of
mon

stock

—For

(par 50 cents).

lease of

Price—$5

per

share.

com¬

Proceeds

building and operating capital. Office
N. Burgard, Portland, Ore.
Underwriter—Auld
Portland, Oreg. %
a

—10915

& Co.,

Bowling & Construction Corp.
28, 1960 filed 120,000 shares of class A common
stock. Price—$5 per share/Business—The
building, leas¬
ing and operation of bowling centers. Proceeds t-t- For
Nov.

working capital. Office—26 Broadway, New York, N. Y.
Underwriter

—

Arnold

Malkan

&

Co., Inc., New York

City (managing).
Bowl-Mor Co.,

Inc.

Oct. 28, 1960 filed $2,000,000 of 6% convertible subordin¬
ated

debentures,

amendment.

due

1975.

Proceeds

—

For

Price—To

be supplied by
working capital. Office —

Newtown

Road, Littleton, Mass.
Underwriters—Paine,
Webber, Jackson & Curtis and Granbery, Marache & Co.,
both of New York City (managing). Offering—Expected
January.

Bowl-Mor Co., Inc.
Oct. 25, 1960 filed 78,955 shares of common stock, to be
offered to holders of the outstanding common on the
To

of

it Banner Industries Inc.
Dec.

6, 1960 filed 250,000 shares of common stock (par
10c), 222,500 warrants for the purchase of a like num¬
common shares and 222,500 common shares under¬
lying the warrants. Offering will be made in units, each

ber of

consist

warrant

for

of two shares of

the purchase

of

one

common

stock and

one

share at $6 per share

to May 1, 1962. Price—To be supplied by amendment.
Proceeds—$200,000 will be used to open leased depart¬
ments in self-service discount centers and super markets,

be used to expand the company's
imports from Europe and Japan and the balance will be
used for additional working capital. Office—St. Louis,
Mo. Underwriter—Netherlands Securities Co., Inc., New
about

York
•

$100,000

will

City.

Baruch

Sept.

(R.)

20, 1960

common

stock

&

Co.

and maintain markets in

and

a

is

a

new

share for each 10 shares held. Price—

bowling

by amendment. Business—The company
pin - sitting machines for various types

games.

Proceeds—For working capital and for

costs of the company's entry into the "tenpin" bowling
Office — Newton Road, Littleton, Mass.
Under¬

field.

writers
Paine, Webber, Jackson & Curtis, and Gran¬
bery, Marache & Co., both of New York City (man¬
aging). Offering—Expected in January.

Bradford Pools,
Oct.

24,

1960

Inc.

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
warrant. Price—$10 per unit. Business—The
construction,
sale, and installation of pools in New Jersey and neigh¬
boring states. Proceeds—For general corporate purposes,

including working capital.
Office — 245 Nassau St.,
Princeton, N. J. Underwriter—R. A. Holman & Co., Inc.,
New York City. Offering—Expected in late December.
•

Brooks

Oct.

24,

(James)

1960

filed

& Co., Inc.
(12/15)
$400,000 of 12% subordinated

de¬

bentures, due 1980, 50,000 shares of common stock, and
warrants for the purchase of 50,000 common
shares, to
be offered in units consisting of $400 of debentures, 50
common shares, and warrants for the cash purchase of 50
shares. Price—$450 per unit. Business—The retail sale
in two Bronx, N. Y., stores of furniture, appliances,
cameras, photo supplies, and related items.
Proceeds—
To reduce accounts payable to factors, with the balance
for working capital.
Office—542 E. 138th Street, New
York City. Underwriter—Lloyd Haas & Co., New York
City.
•

Brothers

Chemical

Co.

(12/15)

notification) 100,000 shares of
class A common stock (par 10 cents).
Price — $3 per
share.
Business—Manufacturing chemicals. Proceeds—
For
general corporate purposes.
Office — 575 Forest
Aug.

9,

1960

(letter of

pany,

Underwriter—Sandkuhl & Com¬
Inc., Newark, N. J. and New York City.

it Brunswick Corp. (1/11)
Dec. 5, 1960 filed $25,634,000 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 of $100 of debentures for each 65 shares then held.
Price—To be supplied by amendment. Business — The
manufacture and distribution of bowling products.

Pro¬
general corporate purposes, primarily for
foreign investments and increased inventory. Office—
623 S. Wabash Ave., Chicago, 111. Underwriters—Lehman
Brothers and Goldman, Sachs & Co. (managing).
ceeds

—

For

Business

A.ug.

5,

Common

Finance Corp.

1960
stock

(letter of notification) 195,000 shares of
(par 20 cents). Price —- $1.50 per share.
expansion. Office—1800 E. 26th

Proceeds—For business

St., Little Rock, Ark. Underwriter—Cohn Co., Inc., 309
N. Ridge Road, Little Rock, Ark.
California-Pacific

Utilities

Co.

(12/21)

Nov. 21, 1960 filed 57,986 shares
stock. Price—To be supplied by

(12/12-16)

(letter of notification)
(par 75 cents). Price
issuer

one

be supplied

Street, Orange, N. J.

Co., 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.
17, 1960

sometime

m

Schwa-

Price—To be supplied by amendment. Business—A hold¬

—

Business—The

rtvl



—

—

1960

Highway, Oakdale, L. I., N. Y. Underwriter—Plymouth
Securities Corp., New York
City. Offering — Expected
in January.

Corp.

(letter of notification) 75,000 shares of
common
stock (par 12V2 cents). Price — $4 per share.
Business
The design, manufacture and operation of
coin-operated children's amusement devices. Proceeds—

unit to

stock, of which

to be publicly offered.

jihare. Proceeds—To pay off
prove

Seaway Land Co.
common

&

it Automatic

ital.

Co.

shares of common stock, to
be offered to the holders of the outstanding common on
the basis of one new share for each 5V3 shares held.
Price—To

develop the business of the company. Office
St., Wilmington, Del. Underwriter—A. T.
Co., New York, N. Y.

Market

For reduction of current liabilities and for

1960 filed 90,174

26,

4,

manufactures

Brod

general

Beneficial

basis of

it at the amount

Proceeds—To be used to repay $1,481,006 of shortindebtedness incurred in acquiring stock of Acme
United Life Insurance Co., a new subsidiary of the issuer,

American

•

Nov.

tain

term

Aug.

Alondra Blvd., Gardena, Calif. Underwriter
bacher & Co., San
Francisco, Calif.

insurance
coverage
to the members of the
above club. Proceeds—To be added to surplus to main¬

bia.

New

parts and
equipment manufactured by others. Proceeds—For in¬
ventory and to carry accounts receivable, Office—306 E.

•

and further

for

1960 filed

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

in

Traffic Clubs Insurance Corp.
5, 1960, filed 250,000 shares of common stock (par
80c), to be sold to the Associated Traffic Clubs of Ameri¬

—900

remainder

(1/9)
136,000 shares of common stock, of
86,000 shares are to be offered for the account
of the issuing company and 50,000
shares, representing
outstanding stock, are to be offered for the account

Dec.

health insurance in 13 shares and the District of Colum¬

the

Electronic Corp.

12,

which

•

Associated Oil & Gas Co.
Nov.

Bell

Oct.

it Associated

Oct. 24, 1960 filed 354,157 shares of common
stock, being
offered to holders of the outstanding common of record
Dec. 1 on the basis.

o£v,oqq

Arway Manufacturing Corp. (12/15)
15, 1960 (letter of notification) 120,000 shares of
common
stock
(par 25 cents).
Price — $2 per share.
Nov.

and

writings, and the balance for working capital. Office—
1518 K St., N. W., Washington, D. C.
Underwriter—Same.

added

Apache Corp.

mutual

Oct. 27,

Corp.
1960 filed

25,

33

100,000 shares of

—
$2 per share.
broker-dealer with the SEC,

member of the NASD. Proceeds—To take

of outstanding common
amendment. Proceeds—
To selilng stockholders. Office—550 California St., San
Francisco, Calif. Underwriter — Eastman Dillon, Union
Securities & Co., New York, N. Y.

positions

securities, participate in under-

Continued

on

page

34

34

The Commercial and Financial Chronicle

(2310)

Continued

from

page

N.

33

Y.

Underwriters—Brand, Grumet & Seigel, Inc. and
York, N. Y. Offering—Ex¬
pected in early January.

Kesselman & Co., Inc., New

Campbell Chibougamau Mines, Ltd.
filed 305,392 shares of common stock to be
Price—$4 per share. Business

Oct. 14, 1960

offered to warrant holders.
-—The

55

properties.
Office—

general funds of the company.

Yonge St.. Toronto.

Canada.

Underwriter—None.

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—
Bay Road, Miami Beach, Fla.
Underwriter —
& Co., Inc., New York Citv-

•1766

ing fund debentures, due 1976, each $1,000 debenture to
an attached warrant for the purchase of 50 shares

S.

American

Caribbean

Corp.

Robinson

Bldg., 15th & Chestnut Sts.,

Underwriter—R.

P.

&

R.

A.

Miller &

Philadelphia, Pa.
Co., Inc., Phila¬

delphia, Pa. Note—This statement was effective
Caribbean & Southeastern

Nov. 16.

Development Corp.

1960 filed 140,000 shares of common stock.
Price—$5.25 per share. Proceeds—For investment in land
Sept.

levard,

development of a site in Atlanta,
Ga., and the balance for general corporate purposes.
Office—4358 Northside Drive, N. W., Atlanta, Ga.
Un¬
derwriter—To be supplied by amendment.
in the Caribbean area,

Metal

Products

Corp.

(12/15)

Sept. 28, 1960 filed 100,000 shares of common stock (par
$1). Price—$5 per share. Proceeds — Repayment of in¬
debtedness, machinery and equipment, and the balance
for working capital. Office — 2222 S. Blvd., Charlotte,
N. C. Underwriter—Arnold, Wilkens & Co., New York
City.
Century Acceptance Corp.

60,000 shares of com¬

offered for

of

&

Underwriter

Calif.

Angeles,

—

Mitchum,

Templeton, Los Angeles, Calif, and J. A. Bogle

Co., Salt Lake City, Utah.
Commerce

Oil Refining

16, 1957 filed $25,000,000 of first mortgage bonds due
1, 1968 and 3,000,000 shares of common stock to be
in units as follows: $1,000 of bonds and 48 shares

offered

debentures and nine shares of stock.

of stock and $100 of

Price—To

be supplied by

amendment.

Proceeds

—

To

Underwriter—Lehman Brothers, New

construct refinery.

Offering—Indefinite.

York.

Consolidated Realty Investment Corp.

April 27 filed 2,000,000 shares of common stock.

pre-fabricated type residential or
upon properties to

buildings and facilities

commercial

acquired for sub-division and shopping center devel¬
opments; the balance of the proceeds will be added to
be

working capital.

Office—1321 Lincoln Ave., Little Rock,

Underwriter—The Huntley Corp., Little Rock. Ark.

Ark.

Consumers

Oct.

dinated

Cooperative Association

1960 filed $8,000,000 of

25,

5V2%, 25-year subor¬
320,000

indebtedness,

of

certificates

of 80,000 shares of regular common shares.
are to be offered at par, and in units of

of five shares

shares

of

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

of

stock, qpe debenture and one
supplied by* amendment. Business
—The construction of owner completed ("shell") homes.
common

warrant. Price—To be

Proceeds—To increase mortgage notes receivable and the
balance for general corporate purposes. Office — 2915

West

Hillsborough

Ave.;

Fla. Underwriter —
New York City. Offering

Tampa,

Courts & Co., Atlanta, Ga. and
—Sometime in January.

V

Corp.

Aug. 22, 1960, filed 150,000 shares of common stock (no
Price—To be supplied by amendment. Business—

par).
The

company
makes
agricultural
implements, feed
grinding and mixing equipment for the livestock indus¬
try, and conveying and seed cleaning equipment. Pro¬
ceeds—To selling stockholders.
Office—Hopkins, Minn.
Underwriters—Lehman Brothers, New York City, and
Piper, Jaffray & Hopwood, Minneapolis, Minn, (man¬
aging. Offering—Indefinitely postponed.

Dalto

Price—

$1 per share. Proceeds—To establish a $250,000 revolving
fund for initial and intermediate financing of the con¬
struction of custom or

Crumpton Builders, Inc.
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

Nov.

Daffin

Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct.

Thursday, December 8, 1960

.

Office—Cleveland, Ohio. Underwriters—Shearson, Hammill & Co., New York City and Gunn, Carey & Roulston,
Inc., Cleveland, Ohio (managing). Offering—Expected in

Corp.

5%%

Sept. 29, 1960 filed $1,000,000 of 6V2% junior subordin¬
ated debentures, due 1975, with five-year warrants for
the purchase

Los

Jones &

28,

Carolina

account

Dec.

—

were

stock, of which 50,000 shares are to be

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¬
the

Schramm

Sept. 14, 1960 filed 459,500 shares of capital stock. Price
—$2 per share. Business—Caribbean real estate. Pro¬
ceeds
For
general corporate purposes.
Office — 615

Also filed

stock.

common

mon

Aug. 12, 1960 filed 300,000 shares of common stock (par
$1). Price—To be supplied by amendment. BusinessBand sales and development. Proceeds—$150,000 for ac¬

1960 filed $1,000,000 of 6Mt% subordinated sink¬

have
of

(12/20-30)

Corp.

International

Canaveral

mining

works

and

owns

company

Proceeds—For

.

mid-January.

Co.

Colwell
Nov. 18,

.

March

Corp.

29

offered

filed

431,217 shares of common stock to be
subscription by holders of such stock of

for

record Oct. 7 at the rate of one-and-a-half new shares for

each

share

—For

then

the

held.

retirement

Price—$1.25
of

notes

per

share. Proceeds

additional

and

working
Office—Norwood, N. J. Underwriter—Sterling,
Co., 50 Broad St., New York City. Offering—

capital.

Grace &

Indefinitely postponed.

Datamation, Inc. (1/16-20) <
30* 1960 (letter of notification) 80,000 shares of
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
Brunt St., Englewood, N. J. Underwriter—Bertner Bros,
Nov.

common

The debentures

the

one

$500 debenture with warrants for 40 shares. Proceeds
—For working capital and general. corporate purposes.

ciation is

and Earl Edden

Office—1334 Oak

facturing association and functions as a supply source
for
local farmers' cooperative associations in
several
mid-Western States.
Proceeds — For facility expansion

Davega Stores Corp.
Sept. 7, 1960, filed $1,500,000 of 6V2%

Street, Kansas City, Mo. Underwriter
Louis, Mo. (managing). Of¬

—A. G. Edwards & Sons, St.

fering—Expected in December.

preferred stock* $25 per share. Business—The asso¬
a cooperative wholesale purchasing and manu¬

ordinated

Chematomics, Inc. (12/20)
Nov. 2, 1960 filed 188,300 shares of common stock, of
which 175,000 shares are to be offered for public sale,

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 5V2% preferred stock. Office—3315 N. Oak Traffic-

and the

remaining 13,300 shares, being outstanding are
for the account of selling stockholders,
subsequent to the sale of the new shares. Price—$3 per
share. Business—The company which was organized in
February 1960, is engaged in the development, produc¬
tion and distribution of heat-resistant synthetic resins.

way,

Proceeds—To be used to finance the

York

Proceeds

continuing expansion and improvement of the company's
electric and gas service facilities in a 65-county area
outside of Greater Detroit.
Office—212 West Michigan

York

to

be

and

offered

For

equipment, promotion, inventory,
working capital and research and development. Office—
122 East 42nd Street, New York City, Underwriter—
East Coast Investors Co., New York City.
•

—

Chemonics

Oct.

17, 1960
stock

common

new

Corp.

(letter of notification), 100,000 shares of"
(par one cent). Price — $3 per share.

Proceeds—For general funds and working capital. Office
—1827 N. E. 144th St., North Miami, Fla. Underwriter—
To be supplied by amendment. Note—This letter was
withdrawn

Nov. 7.

on

Chemtronic Corp.

(12/12)
Sept. 2, 1960 filed 200,000 shares of common stock (par
10 cents). Price—$2 per share. Business—The company
makes and
ceeds—For

sells

miniature

electrolytic capacitors. Pro¬
general corporate purposes, including the re¬

payment of bank loans and the addition of technical per¬
sonnel.

Office—309 11th Ave., South, Nashville, Tenn.
Underwriter—Jay W. Kaufmann & Co., New York City.
Circle Controls

Oct.

28,

Business

Corp. (12/30)
(letter of notification) 95,000 shares of
(par 10 cents).
Price — $3 per share.
Manufacture
and
rebuilding of electronic,

1960

stock

common

—

electro-mechanical and mechanical controls.

Proceeds—

•

Underwriter-—None.

Kansas City, Mo.

Consumers

Power

Co.

than

a

5%% basis.

Ave., Jackson, Mich. Underwriter — To be determined
by competitive bidding. Probable bidders: For bonds—
Halsey, Stuart & Co. Inc.; White, Weld & Co., and Shields
& Co. (jointly); Morgan Stanley & Co.; The First Boston

Corp., and Harriman Ripley & Co., Inc.
to be received

on

Dec.

Ave., New York City.

12

3,

1960

common

stock

Corp.
(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Busi¬

ness—Manufacturers of household chemicals. Proceeds—
To go to a selling stockholder. Office—601

S. Columbus

Ave., Mt. Vernon, N. Y. Underwriter—John R. Boland &
Co., Inc., New York, N. Y.
Coastal

Acceptance Corp.
Oct. 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,
—

Manchester, N. H.
Coburn Credit Co.,
Nov.

Continental

Bids—Expected

to 11:30 a.m., at 300 Park
Information Meeting—Scheduled

for Dec. 9 at 11:00 a.m., Bankers
New York City, 12th floor.

Investment

Trust Co., 16 Wall St..

value

Inc.

10, 1960 filed 100,000 shares of outstanding com¬
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).
stock. Price—To be

$1).

Price—$4

sales finance business.
purposes.

per

share.

Proceeds—For general corporate

Office—53 N. Park Avenue, Rockville Centre,




pursuant

to

it

sells

the

metropolitan

New York
appliances,

electrical

various

area

in

sporting

City.
Underwriter—Amos Treat & Co., Inc., New
City (managing),
' /
•
.

.

'jt Davos, Inc. (12/19-23)
Oct. 26, 1960
(letter of notification) 50,000 shares of
common stock
(par 10 cents). Price—$5 per share. Pro¬
ceeds—Preparation of a ski lift for the current season,
redemption of notes payable and for development and
improvement of property. Office — Woodridge, N. Y.
Underwriter—B, G. Harris & Co., Inc., New York, N. Y.
Delta

Design,

Inc.

Sept. 28, 1960 filed 100,000 shares of capital stock. Price
—$4.50 per share.

Business

—

Development of

vacuum

and

tooling; inventory and working capital. Office—3163

Adams Ave., San

Diego, Calif. Underwriter—None.

—

—

•

Cook Coffee Co.

(12/12-16)

Oct. 19, 1960 filed 100,000 shares of outstanding common
stock (par $1). Price — To be supplied by amendment.
Business

ing),
•

- .

Coral

intends

Aggregates Corp.

to

Designafronics, Inc. (12/14)
Sept. 28, 1960 (letter of notification) 100,000 shares of
common stock
(par 10 cents). Price — $2.25 per share.
Business—Manufacturers of electronic equipment.
For
general corporate purposes. Office — 199 Sackett St.,
Brooklyn, N. Y.
Underwriters — Cortlandt Investing
Corp.; Rothenberg, Heller & Co., Inc. and Joseph Nadler
& Co., Inc., New York, N. Y.
>
i
.

Wholesale and retail grocery business. Pro¬

—

(12/27)

in the extraction and sale of rock.
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
Robinson & Co.. Inc.. Philadelphia, Pa.
engage

Proceeds—For

tirement of

Cove Vitamin & Pharmaceutical

Inc.

(12/19-23)

Sept. 30, I960 filed 108,000 shares of common stock (par
50 cents), and five-year warrants for the purchase of
an additional 54,000 shares of common
stock to be of¬
fered in units, each unit to consist of two shares and a
warrant for the purchase of one share. Price — To be
supplied by amendment. Business—Mail order marketing
of vitamins through department stores. Proceeds — To
implement the company's merchandising plan and for
working capital. Office—26 The Place, Glen Cove, L. I.,
N. Y. Underwriter

Hill, Thompson & Co., Inc., New

—

Co.

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—-Jo 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.
/::■
Diketan

Laboratories, Inc.
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¬
search and new product development and working cap¬
ital. Office
9201 Wilshire Blvd., Beverly Hills, Calif.
Underwriter
Holton, Henderson & Co., Los Angeles,
Sept. 30,

—

—

Calif.
•

Does-IVSore

Products Corp.
(12/12)
(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¬

Oct.

12,

1960

—

•

,

convertible subordinated
debentures, due Dec. 31, 1980. Price—To be supplied by
amendment. Business—The production and distribution
of high purity chemicals for industrial use, primarily by
laundries. Proceeds
For expansion and construction.
—

t

Detroit

derwriter

York, N. Y.
Nov. 29, 1960 filed $2,500,000 of

stock

(par
Business—Consumer
common

23

system components.. Proceeds — For acquisition of land
and construction of a factory; purchase of new machinery

Corp.

Nov.

mon

Cowles Chemical

18, 1960 filed 50,000 shares of

convertible sub¬
being offered to its

and apparel.
Proceeds — For general corporate
including fixtures and inventory for two new
retail discount centers. Office—215 Fourth Avenue, New

up

Aug. 25, 1960 filed 100,000 shares of common stock (par
10 cents). Price—$4 per share. Business—The company

Nov.

1975,

record" Nov.

goods

Circle-The-Sights, Inc.
March 30 filed 165,000 shares of common stock and $330,000 of debentures (10-year 8% redeemable). Price—For
stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
Underwriter—None.

due
of

purposes,

21, 1960 filed first mortgage bonds in the amount
$35,000,000, maturing in 1990 to be sold for the best
price obtainable but not less favorable to the company

writer—Goldman, Sachs & Co., New York City (manag¬

Chemical

in

stores

of

—Rodetsky, Kleinzahler, Walker & Co., Jersey City,
N. J.; L. C. Wegard & Co., Trenton', N. J. and L. D. Sher¬
man & Co., New York, N. Y. '

Office—Washington, D. C.

retail

Oct.

ceeds—To three selling stockholders. Office—16501 Rockside Road, Maple Heights, Cleveland 37, Ohio.
Under¬

Click

debentures,
stockholders

m

■

preemptive rights, with rights to expire on Dec. 14 at
3:30 p.m. (EST). Price—$100 per debenture plus accrued
interest; Business—The company operates a chain of 29
which

(12/12)

For general corporate purposes and working capital. Of¬
fice—204 S. W. Boulevard, Vineland, N. J. Underwriters

service.

common-

Co., New York City.

Drexel

—

H. L.

Wright & Co., Inc., New York, N. Y.

Equity Fund,

Inc. (12/20)
1960 filed 500,000 shares of common stock (par
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
Oct. 25,
10

sale of these shares.

Proceeds—For

portfolio investment.

Volume

Office—1500

6010

Number

1S2

Walnut Street,

.

The Commercial and Financial Chronicle

.

.

First

Philadelphia, Pa. Distribu¬
Co., Philadelphia,

Pa.

Oct.

Inc.

1960

(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
ceeds—For promotion, advertising, purchase of equip¬
ment and working capital. Address—Blooming Glen, Pa.
24,

stock

common

Investment

Company

Cambridge, Mass., to furnish

Tampa, Inc.

terminations

0(jt. 6, 1960 filed 500,000 shares of common stock. Price
—$12.50 per share. Proceeds — To provide investment

.

DurBan,

Business

Small

of

tor and Investment Adviser—Drexel &

(2311)

Underwriter—Hess, Grant & Remington, Inc., Philadel¬
phia, Pa. Offering—Imminent.

capital. Office—Tampa, Fla. Underwriter—None.
Florida Suncoast Land & 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¬
—

•if

Eastern Bowling Corp.

;Nov. 29, 1960 filed 150,000 shares of class A stock. Price
,—To be 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—Schir,mer, Atherton & Co., Boston
Echlin

writer—None.

Industries, Inc.
(letter of notification)

1960

14,

(managing).

ment used

;Nov." 21,

by department, drug and variety chain stores,
Proceeds—For expansion; to repay a
loan; advertising, sales and promotion; for working cap¬

1960 (letter of notification) an undetermined
number of shares of common stock (par $1). Price—To

and

be

,

ital and general corporate purposes. Office—250 W. 57th

supplied by amendment. Proceed»~-r-To selling stock¬
Address—Branford, Conn. Underwriter—Blair
.& Co., Inc., Chicago, 111.
holders.

■if Edlund Engineered Products, Inc.
•Nov. 25, *1960 (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.
.Offering—Expected in mid-January.
Edwards Industries, Inc.
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¬
•

1

•

ed in late December

Electro

July

Industries, Inc.

1960

19,

;

class A

;

tional class A
writers.

of notification) 75,000 shares of
stock (no par) and 20,000 shares of addi-

common

Prices—Of

stock to be offered to the under¬

class

A

share; of
additional class A common, 2% cents per share. Proceeds
—To expand the company's inventory to go into the
packaging and export of electrical equipment, and for
'working capital. Office—1346 Connecticut Ave., N. W.,
$2

common,

per

,

Washington,

C,

D.

Unflenyrit^ —.^Carleton Securities

Corp., Washington, D. C.
Electro-Mechanics

/Oct.

1960

4,

(letter

stock

common

ceeds—For

notification) T00;000f shares

capital.

Address—Westlake

Tex. Underwriter—James C. Tucker &

of

Hills,

Co., Inc., Austin,

Tex.

Aug. 31,

.

;

(letter of notification) 250,000 shares of
common stock. Price—At par ($1 per share). Proceeds—
To purchase new equipment, rental and for administra¬
tive costs. Office—115 Washington Blvd., Roseville, Calif,
Underwriter—A. J. Taranto & Co.. Carmichael, Calif.
1960

Electronic Specialty Co.
:June 2 filed 150,000 shares of

common stock
(par 50
Price—To be supplied by amendment. Proceeds
added to the general funds in anticipation of
'capital requirements, possibly to include acquisitions
Office—5121 San Fernando Road, Los Angeles, Calif.

cents).
—To

be

'

-

Underwriter

—

Bateman, Eichler & Co. of Los Angeles,

'

Calif. Offering—Indefinitely postponed.
Electronic

~

"

•

Tube

and

sale

ment;

initiation

indebtedness

of

of

cathode

rav

production;

for

and

tubes

and

associated

working

equip¬
existing

of
Office—1200

repayment
capital.

E.

.Mermaid Lane.

Philadelphia, Pa. Underwriter—Harrison
Co., Philadelphia, Pa. (managing).

Instruments, Inc.
Oct. 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¬
^

tenth

of

sale
a

in

units

warrant.

of

No

one

sale

share

will

be

of

•

stock

made

of

and
less

one-

than

10 such units. Price—To be related to the price of the
company's stock in the over-the-counter market immet'diately prior to the offering. Business—The firm makes
and sells instruments and equipment for scientific and
industrial measurement and analyses. Proceeds—To selling stockholders, who are two company officers who will
lend the net proceeds to the company. Office—430 Buck¬

•

.

ley

St., Bristol, Pa. Underwriter — Warner, Jennings,
& Longstreth, Philadelphia, Pa. Offering—Ex¬
pected in late January-to-early February.
Mandel

if Falls
•

.

Plaza

(1/16-20)

(letter

stock

of notification) 60,000 shares of
(par 10 cents). Price—$5 per share. Busi¬

of

a

retail

super

market.

Proceeds

—

For

general

corporate purposes. Address—Route 18, Tices Lane, East
Brunswick, N. J. Underwriter—Alessandrini & Co., Inc.,
New
•

York

City.

Restaurants, Inc. (12/15)
Oct. 18, 1960 filed 180,000 shares of outstanding common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders. Office—Cincinnati, O.
Under¬
writer—Westheimer & Co., Cincinnati, O. (managing).
Gala

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

Industries, Inc. t
1960 (letter of notification) 16,000 shares of
stock (par 25 cents). Price—$5 per share. Pro¬
For equipment, advertising and sales, working

American

Investment

which 18,750 shares
the

issuing

1960

of Phoenix, and to organize subsidiaries. Office—2222 N
16th St., Phoenix, Ariz. Underwriter—None.




stock

to be offered for the account

are

and

company

the

of
of

remaining 31,250 for the

account of the present holders thereof. Price—To be
sup¬
plied by amendment. Proceeds — For working capital.
Office—New Bedford, Mass. Underwriter—C. E.

Unter-

Geotechnics & Resources,

Inc. (12/21-25)
(letter of notification) 149,800 shares of
capital stock (par 25 cents). Price—$2 per share. Busi¬
ness—Scientific research and development. Proceeds—
For general corporate purposes. Office — Westchester
County Airport, White Plains, N. Y. Underwriter—S. D.
Nov.

25,

1960

Fuller & Co., New York, N. Y.

if Glamour Vending Corp.
Nov. 25, 1960 (letter of
notification) 140,000 shares of
common stock
(par 50 cents). Price—$2 per share. Pro¬

vending machines, for inventory and

for

working capital. Office—1212 Tower Bldg., Denver,
Colo. Underwriter—J. R. Holt & Co.,
Denver, Colo.
Gold Medal

Packing Corp.

June 17, 1960, filed 100,000 shares of 25c convertible
pre¬
ferred

stock

(par $4). Price—At par.
Proceeds—Ap¬
proximately $150,000 will be used to discharge that
portion of its obligation to Jones & Co. pursuant to
which certain inventories

are

indebtedness

Co.

to Jones

&

pledged as collateral. The
was
initially incurred on

be

used

for

the

construction

of

additional

an

smoke¬

house, and the balance will be used for general corporate
Office—614 Broad Street, Utica, N. Y. Busi¬
is engaged in the processing, pack¬
ing and distribution of meats and meat products, prin¬
cipally sausage products, smoked meats, bacon, and meat
specialties. It also sells certain dairy products.
Under¬
purposes.

ness—The company

Wells, Inc., 15 William Street, New York

City.
•

Golden

Crest

Records, Inc.

Oct. 25, 1960 filed 85,000 shares of
mon
stock.
Price—$3 per share.

10c par class A

com¬

Proceeds—The

firm
proceeds of its first public offering for
working capital and general bbf-fiOrate''jitifb^ses. Office

will

use

the

January.

Corp.
Oct. 12, 1960 filed 100,000 shares of common stock. Price
—$3 per share. Business—A hydrant jet fueling com¬
pany. Proceeds—Expansion. Office—Seaford, L. I., N. Y.
Underwriter—Theodore Arrin & Co., Inc., 82 Beaver St.,
New York City.
(Connie B.) Gay Broadcasting Corp.
Sept. 9, 1960 filed 130,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
The company and its subsidiaries own and
operate radio
and television stations. Proceeds—For the
acquisition of
a television station and two radio
stations in Missouri.
Office
4000 Albemarle

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

—

Underwriter—Hill, Darlington & Grimm, New York City
(managing).

Note—This

statement

was

withdrawn

on

Great

American

Industries,

to selling stockholders. Office—485 Fifth Ave., New
York, N. Y. Underwriter—J. G. White & Co., Inc., New
York, N. Y.
go

•

Gremar Manufacturing Co.,
Inc.
(12/9)
Sept. 20, 1960 filed 100,000 shares of common stock (no
par). Price—To be supplied by amendment. Business—

Manufactures

coaxial

connectors

and

associated

reduction, inventory and construction. Office—7 North
Ave., Wakefield Mass. Underwriters—Milton D. Blauner
& Co., Inc. and M. L. Lee Co., Inc., New York, N. Y
Gro-Rite

Oct.

Shoe

1960

12,

Co., Inc.

(letter of notification)

number of shares of

Price—$4 per share. Business—The issuer owns
bowling establishments, and a tract of land in In¬
diana County, Pa., on which it hopes to build a third.
Proceeds—To equip the prospective establishment ($150,-

N. C.

100).

cable

fittings for the electronic and electrical industries. Pro¬
ceeds — For general corporate purposes, including debt

Bowling Corp. (1/23-27)
Nov. 17, 1960 filed 250,000 shares of common stock (par
two

Inc.

Nov. 10, 1960 filed 500,000 shares of outstanding common
stock (par 10 cents). Price—$3 per share. Proceeds—To

•

General

an

undetermined

stock

(par $1). Price—The
offering will not exceed $300,000. Proceeds—For work¬
ing capital. Address—Route 2, Box 129, Mount Gilead,

•

common

Note—This letter

Guild Musical

was

withdrawn Nov.

18.

Instrument

000), to repay

Corp.
Oct. 25, 1960 filed 110,000 shares of common stock. Price

to

—$3

a

a bank loan ($50,000), to add eight lanes
bowling facility ($50,000), and the balance will be
for working capital. Office—2 Park Avenue, Man-

hasset, L. I., N. Y. Underwriters—H. S. Simmons & Co.,
Inc., and McMahon, Lichtenfeld & Co., both of New York
City.

share. Proceeds — For general corporate pur¬
including debt reduction, machinery and equip¬
ment, inventory, and working capital. Office—Hoboken,
N. J. Underwriter—Michael G. Kletz & Co., Inc., New
York City. Offering—Expected in late January.

Development Investment Plans, Inc.

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¬
sidiary of General Development Corp., whose principal
business is the development of large tracts of land into
planned communities. Office—2828 S. W. 22nd Street.
Miami, Fla. Underwriter—None.

Gulf

Genie

Petroleum, Inc.

Price

share. Business—Development of oil properties.
corporate purposes. Office—5245
W. Irving Park Road, Chicago, 111. Underwriter—The is¬

—$1

per

Proceeds—For general

suer

intends to become

a

licensed

broker-dealer in the

states in which this offering is to be

licensed broker-dealers

on

a

"best efforts"

Guaranty Land & Title Co.

Nov. 29, 1960 filed $750,000 of 7% convertible subordin¬
ated

debentures, due 1968 and 150,000 shares of common
units, each unit to consist of $100

stock to be offered in
of

debentures and

laboratories,
Nov.

vertible

shares

of

common

stock.

Price—

debtedness, repay a mortgage, construction, and general
corporate purposes. Office—Miami, Fla. Underwriter—
Street &
•

Gulf

*

Co., New York City.

States

Utilities Co.

(1/17)

"

350,000 shares of common stock.
Proceeds—To repay short-term notes, for construction,
and general corporate purposes. Office—Beaumont, Tex.
Underwriter—To be determined by competitive bidding.
Probable bidders: Stone & Webster Securities Corp.;

29,

1960

filed

Lehman

Brothers; Glore, Forgan & Co.; Lee Higginson
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. Bids
—Expected Jan. 17, 1961. Information Meeting—Sched¬
uled for Jan. 12 at 11:00 a.m. at the Hanover Bank, New
York City.

basis.

Inc.

29, 1960 filed 150,000 shares of common stock. Also
were
30,000 common shares underlying 6% • con¬
notes and 60,000 warrants to purchase a like
number of common shares. Price—To be supplied by
amendment. Business—The operation of a laboratory at

filed

20

$200 per unit. Business — The development of a planned
community in Cape Coral, Fla. Proceeds—To reduce in¬

Nov.

Nov. 10, 1960 filed 838/418 shares of common stock.

per

poses,

•

General
Oct.

Corp.

filed 2,500,000 shares of common stock.
Price—$2 per shard. Business—Insurance. Proceeds—To
acquire control of Western Heritage Life Insurance Co.
14,

City.

Geophysics Corp. of America (12/i2)
Sept. 28, 1960 filed 50,000 shares of common

Heinicke

First

samples,

—

©

Garsite

other

.

basis, de¬

mineral

Va.

—

made, and to offer
338,718 of the shares through its officers and employees.
The remaining 500,000 shares will be offered through

Oct.

and

capital, research and development. Address — Clifton
Forge, Va. Underwriter—Storer Ware & Co., Roanoke,

ceeds

Washington, D. C.
.

commercial

a

—Huntington, L. I., N. Y. Underwriter—Dean Samitas
& Co., Inc., Ill Broadway, New York City and Valley
Forge Securities Co., Inc., Philadelphia, Pa: (jointly).
Note—This filing was withdrawn Nov. 16 and will be
refiled the week of Dec. 12. Offering—Expected in late

25,

Place, N. W., Washington, D. C. Underwriter—Hodgdon
& Co., Inc., and Investor Service Securities
Inc., both of

.

of New York

writer—Ernst

French's

used

,Elion

fered for

Inc.

1960

25,

common

on

rock

15, 1960 in connection with refinancing the com¬
pany's obligations to a bank. In addition, $15,000 will

.

electronic products. Proceeds—The acquisition of

&

Nov.

of

age

June

Nov. 17.

Corp.
Nov. 28, 1960 filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business—The manufacture

Underwriter—None.

if Freoplex,

•

Electro-Nuclear Metals, Inc.

•

or small loan business,
and, to a lesser extent,
purchasing of car, boat, and appliance installment
sales contracts from dealers. Proceeds—For general cor¬
porate purposes. Office—105 North Sage Street, Toccoa,

common

(par 10 cents). Price—$3 per share. Pro¬

working

finance

Ga.

Office

ceeds—To purchase

m the

Oct.

Co.

of

Discount Co.

Aug. 23, 1960, filed $300,000 of 8% subordinated convert¬
ible debentures, due serially 1966-1968, and
$300,000 of
8% subordinated capital notes due eight years, eight
months and eight days after date of issue.
Prices—At
par. Business—The company is engaged in the consumer

tion

(letter

common

St., New York, N. Y. Underwriter—Richard Bruce & Go.,
Inc., New York, N. Y.

ness—The sale and servicing of home food freezers; the
sale of bulk food supplies for freezer use and the opera¬

early January.

or

institutions.

Franklin

the

construction, equipment, and working
24 Blackstone St.,
Cambridge, Mass.
Underwriter—Globus, Inc. and Ross, Lyon & Co., both
capital.

•

100,000 shares of

stock (par 50 cents). Price—$3 per share. Busi¬
ness—Manufacturers of stainless steel food service equip¬
common

Manufacturing Co.

of

For

—

berg, Towbin Co., New York City (managing).

Foremost

Oct.

Proceeds

35

Instruments Co.

Nov. 10, 1960 filed 67,000 shares of common stock. Price
To be supplied by amendment. Business—The company,

together
pumps

with

for its

its
own

subsidiaries,
use

makes

stainless

and sale to others,

steel

and designs

Continued

on

page 36

1

iViM.WiiW"nV

11 .ia.Wn

36

The Commercial and Financial Chronicle

(2312)

.

.

Thursday, December 8, 1960

.

"V

of

facture

Continued jrorn page 35

control

machining.

equipment

high frequency cleaning
cleaning and sterilization of

manufactures

and

-

glassware.
issuer's note in the
amount of $470,000 payable to its president, Dr. Kurt J.
Heinicke, with the balance for plant and equipment and
other general corporate purposes.
Office—2035 Harding
St., Hollywood, Fla. Underwriter — Pierce, Carrison,
Wulbern, Inc., Jacksonville, Fla. (managing).
the

in

used

Proceeds—To reduce by $300,000 the

(Walter E.) & Co.
Oct. 24, 1960 filed 100,000 shares of common stock (par
$1). Price—To be supplied by amendment. Proceeds—
About $1,000,000 to purchase preferred stock of Nation¬
wide Investment Co., about $1,000,000 to purchase secu¬
rities of an as yet unorganized firm tentatively named
"Credit Acceptance Co.," and the remainder for general
corporate purposes. Office—105 West Adams St., Chi¬
cago, 111. Underwriters — F. Eberstadt & Co. and Dean
Witter & Co., both of New York City (managing). Offer¬
ing—Expected in late December to early January.
Heller,

•

High Point Ski Ways, Inc. (12/12-16)
17, 1960 (letter of notification) 150,000 shares of
stock (par 10 cents). Price—$2 per share. Busi¬
ness—Operation of a ski area, ice-skating rink, open air
Oct.

common

theatre, skeet and other shooting ranges. Proceeds—For
general corporate purposes. Address—Port Jervis, N. Y.
Underwriter—Osborne, Clark & Van Buren, Inc., New

York, N. Y.
Hilltop, Inc.
Aug. 17, 1960 filed $1,650,000 of 6% subordinated deben¬
tures, due 1980, and 1,650 shares of class A common stock,
to be offered in units of one $1,000 debenture and one
class A share. Price — To be supplied by amendment.
Business—The principal business of the company, which
was organized under Kansas law in June, 1959, will be
the

acquiring,

owning,

selling,

developing,

improving,

and leasing of

improved and unimproved real property.
Proceeds—To reduce funded debt.
Office—401 Colum¬
bian Bldg., Topeka, Kan.
•

Underwriter—None.

Holiday Inns of America,

Nov.
mon

(12/13)

Inc.

ment.

Business

The

—

firm

and

its

double-diffused, broad base silicon diodes, but is not vet
in commercial production of these items. Proceeds—For
expenses
of semi-conductor production, research and
development, advertising and selling, inventory, and gen¬
eral funds.
Office—78 Clinton Road, Caldwell Town¬
ship, N. J.
Underwriter—Edward Hindley & Co., 99
Wall Street, New York 5, N. Y. (managing). Offering—
Expected in mid-January.
^ Industrial
Nov.

licensees

own

and

162 inns throughout the country. The issuer,
through a subsidiary, gains additional revenue from sell¬
ing various supplies and equipment to motels, prin¬
cipally its licensees. Proceeds—To selling stockholders.
Office—3736 Lamar Ave., Memphis, Tenn. Underwriter
—Equitable Securities Corp., Nashville, Tenn.
Builders

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.
Nevada, Colorado Springs, Colo. Underwriter—None.
Howell Instruments Inc.

Oct. 4, 1960 filed 140,000 shares of outstanding
stock. Price—To be

common

supplied by amendment. Proceeds—

To selling stockholders.
Address — Fort Worth, Texas,
Underwriters—G. H. Walker & Co., New York, N. Y. and

Dewar, Robertson & Pancoast, San Antonio, Tex. Offer¬
ing—Indefinitely postponed.
Hydro-Electronics Corp.
Nov. 21, 1960 (letter of notification) 150,000 shares of
common stock (par one cent). Price—$2
per share. Busi¬
ness—The design and manufacture of precision measur¬
ing equipment, automation equipment and general pre¬
cision fluid

controls. Proceeds
For general corporate
Office—691 Merrick Road, Lynbrook, L. I.,
N. Y. Underwriter—Lloyd Securities, New York, N. Y
—

purposes.

Hydromatics, Inc.
1960 filed $1,000,000 of debentures, due Jan. 1,
1971 with warrants for the purchase of common stock

Nov. 25,
to

be

in

offered

debenture and
mon

units, each unit to consist of

one

a

$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).
—

"I

la

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
product'
and services for the fiberglass
industry, including par¬
ticularly fiberglass boats known as "HydroSwift" and
"Skyliner." Proceeds—For general funds, including ex¬
pansion. Office — 1750 South 8th St., Salt Lake
City,

Utah.

I C

Underwriter—Whitney & Co., Salt Lake CitvInc.

Utah.

•

June 29 filed 600,000 shares of

To go to

motion

and

per

stock

share.

advertising

of

its

selling stockholders. Office—515 S. Aiken Ave.,
Underwriter — McKelvy & Co., Pitts¬

Pittsburgh, Pa.
burgh, Pa.

July 29, 1960 filed 42,000 shares of 6% non-cumulative
preferred stock (par $8). Price — $8 per
Business—Makes
of

diodes.

sells

and

Proceeds—To

production and sales engineers, fi¬

product development, buy equipment, and
working capital. Office—90 Forrest St., Jersey

to

City,

J. Underwriter—Ernst Wells, Inc.,

N.

New York

City.

^ International Electronic Research Corp.
Dec. 1, 1960 filed 220,000 shares of common stock, of
which 110,000 shares will be sold by the company and
110,000 shares for the account of selling stockholders.
Price—To be supplied by amendment. Business—Pro¬
duces a heat dissipating tube shield' for electron tubes,
precision AC instruments, and does subcontract work
in the aircraft and rocket engine industry. Proceeds—To
and increase working capital.
Office—135 West Magnolia Blvd., Burbank, Calif. Under¬
writer—Schwabacher & Co., San Francisco, Calif, and
New York City (managing).

outstanding loans

repay

Mosaic

International

Corp.
(12/23)
Sept. 30, 1960 (letter of notification) 93,333 shares of
common stock
(par 10 cents). Price—$3 per share. Busi¬
ness
Manufacture of glass mosaics by machines and
processes. Proceeds — For general corporate purposes.
Office—45 East 20th St., New York 3, N. Y. Underwriter
—B. G. Harris & Co., Inc., New York, N. Y.
Preferred Life

Investors

beverages,

Insurance Co.

(letter of notification) 150,000 shares of
common
stock (no par). Price—$2 per share. Proceeds
—For capital and surplus accounts. Office—522 Cross St.,
Sept. 26,

Little

1960

Rock, Ark. Underwriter — Life Securities, Inc.,
Little Rock, Ark.

P. O. Box 3662,

Iowa

Power

Light Co. (1/11)
Nov. 7, 1960 filed $10,000,000 of first mortgage bonds,
due 1991.
Price—To be supplied by amendment.
Pro¬
ceeds—To reduce past and future bank loans incurred

construction, the aggregate cost of which is estimated
$20,500,000 for 1960-1961. Office—823 Walnut Street,
Des Moines, Iowa.
Underwriter—To be determined by
at

Boston
Corp.; Equitable Securities Corp.; White, Weld & Co.;
bidding.

competitive

bidders:

Probable

First

Halsey, Stuart & Co. Inc., Lehman Brothers; Eastman
Dillon, Union Securities & Co.; Blyth & Co. and Kidder,
Peabody & Co. Bids—Expected to be received on Jan. 11
up to 10:00 a.m. (CST) at the Assembly Room, 8th floor,
Harris Bank Bldg., Ill W. Monroe St., Chicago, 111.
•

Irving Fund for Investment in

U. S. Government

Securities, Inc.
July 22, 1960, filed 400,000 shares of common stock.
Price
$25 per share. Business — A diversified invest¬
ment company, which will become an open-end company
with redeemable shares upon the sale and issuance of
the shares being registered.
Proceeds—For investment
—

Office—50 Broad Street.

in U. S. Government securities.

New

York

Broad

City.

Underwriter—Capital

Counsellors,

50

St., New York City.

29

Beef,

L. & W.

S.,

Inc.

filed

200,000 shares of outstanding common
•tock.
Proceeds—To selling stockholders.
Price—$10
per share.
Office—200 South Craig Street,

Pa.

and Bruno

Lenchner, Inc., Pittsburgh, Pa. Offering—Ex¬

pected in February.
Industrial Control Products, Inc.
Nov. 1, 1960 filed 125,000 shares of 10£
par class A stock.
Price—$4 per share. Business—The design'and manu¬
,

*




mortgage

determined at

be

bonds,

competitive bid¬

Halsey,

Co.

&

Stuart

Inc.;

Dillon,

Eastman

Securities & Co. and Stone & Webster Securities

Corp. (jointly); Glore, Forgan & Co.; Kuhn, Loeb & Co.,
and A. C. Allyn & Co. (jointly). Bids — Scheduled for
Jan.

17

York

11

at

(EST), Room 240, 2 Rector St., New

a.m.

City.

Keysvone Alloys Co.
28, 1960 filed 107,755

Oct.

shares of common stock, of
be offered for the account of
75,000 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price — To be supplied by
amendment.
Business—The company makes aluminum
siding and accessories, coated materials, aluminum rail¬
ing and columns for interior and exterior use, and a
variety of aluminum combination storm-screen sash and
doors and related products. Proceeds—$150,000 will be
which 32,755 shares are to
the issuing company
and

used

finance

to

construction

the

installation

and

of

an

additional paint line, with the balance for working capi¬
tal. Office—511 Mellon Bank Bldg., Latrobe, Pa. Under¬
writer

Singer,
(managing).

•

Deane

—

Koeller Air

Scribner,

&

Pittsburgh,

Pa.
.■

.

Inc.

Products

(12/12)

Aug.

31, 1960 filed 100,000 shares of common stock
(par 5 cents) and 50,000 warrants to be offered in units,

each unit to consist of 2

shares of

stock

common

warrant. Each full warrant is convertible into
of common

$2

within

share.

per

a

from

year

Price—$4

per

1

share

the date of offering at
firm

unit. Business—The

distributes hydrogen,
nitrogen, oxygen, and
equipment. Proceeds — For general corporate
Office—596 Lexington

and

one

welding
purposes.

Ave., Clifton, N. J. Underwriter—

Lloyd Securities, 150 Broadway, New York City.
LP Gas

Sept.

27,

Savings Stamp Co., Inc.
(letter of notification)

1960

stock

30,000

shares

of

Price—At par

($10 per share). Proceeds
—For purchase of creative design and printing of cata¬
logs, stamp booklets, advertising and for working cap¬
ital. Office—300 W. 61st St., Shreveport, La. Underwriter
—International

Sales

&

Investment,

Inc.,

4501

North

Blvd., Baton Rouge, La.
Lake
Nov.

Central

1960

9,

stock.

The issuer is
in

Airlines,

filed

Price—To

be

Inc.

130,000 shares of $20 par preferred
supplied by amendment. Business—

local service airline operating

primarily
Proceeds—Together with a $3,000,000
loan, the proceeds will be used to acquire more

the

bank

planes

a

midwest.

and

for

other

purposes

expansion.

to

germane

Office—Indianapolis, Ind. Underwriter—William Blair &
Co., Chicago, 111. (managing).
<
,

"Lapidoth"

Israel Oil Prospectors Corp. Ltd.
27, 1960 filed 1,500,000 ordinary shares. Price—To
be supplied by amendment, and to be payable either
totally or partially in Israel bonds. Business—The com¬
.

Oct.

pany

was

organized in October

1959

as

consolidation

a

of individual and

corporate licensees who had been oper¬
ating in the oil business as a joint venture. Proceeds—
For exploration and development of oil lands.
Office—
22

Rothschild

Blvd.,

Tel-Aviv,

Israel.

Underwriter—

None.

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,
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

Israel.

Proceeds—To

Israeli

businesses.

invest

in

Office—17

of
existing
St., New York

establishing

East

71st

or

Leadville Water Co.
June 28, 1960

(letter of notification) $220,000 of 20-year
6% series A first mortgage coupon bonds to be offered
in denominations of $1,000. Price—At
par. Proceeds—
For
of

a

a

mortgage payment, outstanding notes, construction
water supply and general
corporate purposes.

new

Office—719 Harrison Ave.,
Leadville,
—H. M. Payson & Co.,
Portland, Me.
•

Leasing

Credit

Nov.

★ Jouet,

200,000 warrants to be offered

Nov.

28,

Inc.
1960

common

stock

Business

—

items.
and

(1/23-27)
(letter

of notification) 300,000 shares of
(par five cents). Price — $1 per share.

The

manufacture

of

dolls, toys and similar
purchase

Proceeds—For expenses of offering; the

installation of machinery and molds and for work¬

ing capital. Office—346 Carroll St., Brooklyn, N. Y. Un¬
Stern

&

Co., 32 Broadway, New

York, N. Y.
Machines, Inc.
Sept. 30, 1960 filed 50,000 comrryan stock units,
to consist of

one

share of class A

common

each unit

of

class

B

common,

to

common

be offered
stock.

for subscription by
price and the

Price—The

ters, establish distributorships, expansion, and the bal¬
ance for working capital. Office—404 No. Frederick Ave.,

Gaithersburg, Md. Underwriter
Washington, D. C.

—

Hodgdon & Co., Inc.,

Jungle Juice Corp.
Oct. 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.

200,000 shares of

class

in units of

A

one

stock

and

share and

warrant. Price—$4 per unit. Business—The
company
plans to engage in business of advancing funds to finance
accounts 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).

• Lee

Communication

28,

1960

(letter

Inc.

(1/16-20)

of

notification) 150,000 shares of
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
common

and 3 shares

1960 filed

one

Nov.

Jonker Business

29,

Colo. Underwriter

Corp.

City. Underwriter—None.

Pittsburgh,

Underwriters—Amos Treat & Co.. Inc.. New York

Price—To

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.

Development Corp.
Nov. 21, 1960 filed $3,000,000 of 5x/2% convertible sinking

basis of the rights offering will be supplied by amend¬
ment. Proceeds—To establish sales and information cen¬

Illinois

1991.

Israel

holders of its

April

due

(1/17)

$7,000,000 of first

1960 filed

29,

for

vis & Co. and Amos C. Sudler &
Colo.
•

Kansas Gas & Electric Co.

common

&

and when
necessary to make loans to such bottlers, etc. Offiee704 Equitable Bldg., Denver, Colo.
Underwriters— Pur

Co., both of Denver,

•

Nov.

new

nance

add

staff

a

Investors Corp., New York, N. Y.

(jointly);

convertible
establish

working capital and general corporate purposes. Office—
Lexington Ave., New York, N. Y. Underwriter—Ira

415

Union

Diode Corp.

International

share.

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,

ding. Proceeds—To retire bank loans and for company's

(letter of notification) 1,000 shares of
(par $5). Price—$45 per share. Proceeds—

stock

derwriter—Edward H.
common

(par $1)
Proceeds—To further the corpo¬
rate purposes and in the preparation of the
concentrate
and enfranchising of bottlers, the local and
national pro¬

Price—$2.50

Leasing: Corp.

1960

25,

common

operate

Home

systems and subcontracted precision
firm
has recently
begun to make

—

127,845 snares of outstanding com¬
stock (par $1.50). Price—To be supplied by amend¬
1960 filed

16,

The

stock

(par

one

working capital. Office—470 Park
N. Y. Underwriter—H. B. Crandall
Liberian

Iron

Ore

Ave., S., New York,
Co., New York, N. Y.

Ltd.

May

19 joined with The Liberian
Minerals Co., Monrovia, Liberia, in

American-Swedish

of $15,000,000 of 6Y4% first lien collateral trust bonds, series A,
due 1980, of Lio,
$15,000,000 of 6V\% subordinated de¬
bentures

due

1985

of

Lio,

an

the filing

unspecified

number

of

shares of Lio capital
stock, to be offered in units. The
units will consist of $500 of collateral trust
bonds, $500
of debentures and 15 shares of
capital stock. Price—For

units, to be supplied by amendment, and not to be in
Proceedsr—To make loans to Lamco. Office

excess of par.

!•

Volume

192

Number

6010

.

.

The Commercial and Financial Chronicle

.

—97 Queen St.,
Charlottetown, Prince Edward Island,
Canada, N. S (Underwriter—White, Weld & Co., Inc.,

New

York. Note

This offering has temporarily

—

company,
and 25,000 shares of outstanding common
stock, to be offered tor the account of four company
officers, the selling stockholders. Prices—For the de¬
bentures, at par; tor the common, to be supplied by

been

postponed.

be

supplied by

ment

in

amendment.

Proceeds—For

electronic

1960

(letter

(12/19)

Oct.

stock

Proceeds—For

Farmingdale, N. Y. Underwriters
Co., Inc. and Sulco Securities, Inc..

Midland-Guardian

Inc.,

Co.

basis of $100 of debentures for each 18 common share*
held. Price—To be supplied by amendment. BusinessDomestic and international transport of
persons,

erty, and mail. Proceeds—To make payments
and

for

(12/30)

Star

Gas

6, 1960 filed

mon

stock

Co.

discounts retail instalment sales notes for dealers in shell

maximum of 665,838 shares of com¬
(par $10) to be offered to holders of record

mobile homes, and cars; finances at wholesale
inventories of dealers in mobile homes and cars; makes

on the basis of one new share for
each 10 shares
then held, with rights to expire on Jan. 23. Price—To be

small

Texas.

Office—301

South Harwood

Proceeds—Repay short-term loans
Underwriter—First Boston

Corp.

and

a

group

loans directly to borrowers;

and operates various
subsidiaries, including a life insurance com¬
Proceeds—To repay short-term bank loans, which
Sept. 30 amounted to $31,529,000. Office—1100 First

on

St., Dallas, Tex.
for

in

units

Price

of

one

$1

—

per

share

unit.

of

stock

Business

and
—

850

financing in the home building industry.
To start its lending activities. Address
886, Rapid City, S. D. Underwriter—None.

Box

—
Farmingdale,
I., N. Y. Underwriter—The James Co., 369 Lexington

—$5

•

&

debentures, due Dec. 1, 1980. Price—To be supplied by

Bank

amendment. Proceeds—For plant
additions, acquisitions,
and working capital. Office—825 Bronx River

be

Ave., New
Underwriters—Kidder, Peabody & Co., Leh¬
Brothers, and Model, Roland & Stone, all of New
York City (managing).

10

the basis of

primarily in

weapons

of

of

electronic

equipment

for

and

Electronics

Sept. 22, 1960
share.

class

A

(par

Price—$3

Marine

28,

by

stock

common

per

electronic

equipment.

Model

Offering—In¬

•

Nov.

of

...

1960,

debentures

and

32,300 shares of stock

to

be

Finance Service,

filed

100.000

Mohawk

shares

Insurance

offered

for

and

fidelity

high

parts

of

conditional

sold, such

sales

as

of

cumulative

pre¬

was

assets

of

per

the

share of stock.
company

are

Business — The principal
an office building at 1910 K

St., N. W., Washington, D. C. Proceeds—To retire cer¬
tain obligations; make improvements on property; retire
debentures due 1961, and to construct or acquire income
producing properties. Office—1625 Eye St., Washington,
D.

C.

Underwriter—None.

York

6,

N.

Y.

Metropolitan Securities, Inc.
Nov. 17, 1960 (letter of notification) 100,000 shares of
class A common stock (par $1).
Price—$3 per share.
Proceeds
For working capital.
Office — 919-18th St.,
N. W., Washington, D. C.
Underwriter — Metropolitan
Brokers, Inc., Washington, D. C.
—

Metropolitan Telecommunications Corp.
Sept. 27, 1960 filed $600,000 of convertible subordinated
.debentures, to be offered for the account of the issuing




one

Proceeds—For expansion.

Price

Shopping Center, Inc.

Hillcrest

Bldg., Ralston, Neb. Underwriter—The
Lincoln, Lincoln, Neb.

Gas

Bldg., Wichita Falls, Texas. Un¬

derwriter—None, but 102,500 of the shares are reserved
for commissions to selling brokers at the rate of 15 share*
for each 100 shares sold.

Nuclear

Engineering Co., Inc.
1960 (letter of notification) 30,000 shares of
common
stock (par 33V3 cents).
Price—$10 per share.
Proceeds—To repay a bank loan, account payable and
for working capital.
Office—65 Ray Street, Pleasanton,
Calif.
Underwriter
Walter C. Gorey Co., San Fran¬
cisco, Calif.

Nov.

17,

—

^ Pacific Coast Fabricating Co.
Nov. 23, 1960
(letter of notification) $300,000 of 7%
debentures to be offered in units of $100 each, due in
10 series of $30,000 each from Dec. 31, 1965 to Dec. 31,

residential first mort
single family non-farm
and surplus.

Office—606

1974, with the option to convert into shares before ma¬
turity at $1 per share. Proceeds—To pay current liabil¬

Milwaukee, Wis.

States Telephone &

ities, notes payable and for working capital/Office—2500
N. E. 72nd Ave., Vancouver, Wash. Underwriter—None.

Telegraph Co.

Pall

1960 filed 6,729,142 shares of capital stock being
stockholders of record Nov. 28 on the basis
new share for each five shares then held. Rights

Corp.

(12/12)

Oct.

to

27,1960 filed 80,000 shares of class A stock (par$l),
be offered for the account
of the issuing company and 50.000 shares, representing
outstanding stock, are to be offered for the account of
of which 30,000 shares are to

*

Dec. 20. Price—$12.50 per share. Proceeds—To
short-term loans made to finance construction.
.Office—931 14th St., Denver, Colo. Underwriter—None.
expire

business.

Office—620 Oil &

Un¬

Oct. 28,
of

a

par.

Normandy Oil & Gas, Inc.
Aug. 31, 1960 filed 750,000 shares of common stock. Price
—$1 per share. Business—Oil and gas exploration and
production. Proceeds — For general corporate purposes.

Underwriter
—Bache & Co., New York City (managing). Note—This
stock is not qualified for,sale in New York State.

offered

—

First Trust Co. of

Offering—Expected some¬

principally on
Proceeds—For capital

Mountain

The company which
1959, is developing, through
dealer-recourse finance business and a

in August,

organized

—200

(par one cent). Price—10 cents per share.
Office—130 I St., Salida,

Wisconsin Avenue,

Ave., New Canaan, Conn. Under¬
& Co., 165 Broadway, New

Morris

21, 1960 (letter of notification) $300,000 of 6% sink¬
ing fund debentures to be offered in denominations of
$1,000 each. Price—At face value. Proceeds—For work¬
ing capital and construction of a shopping center. Office

Insuring lenders against loss on

West

for

Western Underwriting Corp.
25, 1960 filed $2,000,000 of 15-year 6% subordinated

Newton

Underwriter—R. F

Boulevard, North Hollywood, Calif.

loans,

B

stock.

Oct.

Mortgage Guaranty Insurance Corp. (12/15)
Oct. 17, 1960 filed 155,000 shares of common stock (pa/
$1). Price—To be supplied by amendment. Businessgage

B

Office—Helena, Mont. Underwriter—Wilson,
Ehli, Demos, Bailey & Co., Kook Bldg., 3203 3rd Ave,,
North Billings, Mont.

Colo. Underwriter—None.

homes.

South

Glidden

subsidiaries,

Proceeds—For mining expenses.

$10

—

life insurance

equipment. Proceeds—To
working capital. Office—7035

due

and

Office—39

—At

Inc.
29, 1960 (letter of notification) 2,900,000 shares of
stock

class

convertible debentures. Business

ir Moon Rocket Minerals,

Inc.

class

subscription by
Rights expire on
18, 1960. Price—$101 per unit. Proceeds—To repay
bank loan, loans to subsidaries and for
working cap¬

Oct.

and

Street, San Francisco, Calif.
time in January.

common

of

and

New

second

derwriter—Pacific Coast Securities Co., 240 Montgomery

Nov.

share

Moon Homes, Inc.
28, 1960 filed 131,600 shares of common stock (par
$1), of which 66,668 shares are to be offered by the
company, and 64,932 shares, for the account of selling
stockholders. Price—$9 per share. Business—The manu¬
facture £nd 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).

Inc.

subscription by stockholders and (3) approximately
$142,860 of debentures and not to exceed 5,000 shares of
stock to be offered in exchange for the 6% debentures,

March, 1961. of its subsidiary, Mentos Investments,
Price—(1) $1,100 per unit; (2) 100% per debenture

1

New

Co.

retire bank loans and for
Laurel Canyon

and

class A

Nov.

Electronics International, Inc.
filed 200,000 shares of common stock. Price
—To be supplied by amendment.
Business—The com¬
pany, organized in 1958 under the name Arrow Elec¬
tronics International, Inc., imports and sells electronic

Associates,
.

26

A

of

York, N. Y.

one

shares

Monarch

filed (1) $1,100,250 of 8% convertible
subordinated 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 stock; (2) $969,000
17,

shares

Oct. 31, 1960

..

Development

two

being Sept. 1, 1960.
share; for preferred, $100

per

& Co., Inc., 39 Broadway, New
Offering—Expected in late December.

Address—Yorktown, Ind. Underwriter—
Merrill Lynch, Pierce, Fenner & Smith Inc., New York
City (managing).
/
^
&

$10

Business—The purchase

Dowd

outlets.

Investment

of

common

case

fice—198 Broadway, New York City.

and ice cream plant, and processes
and packages delicatessen items. Proceeds—For general
corporate purposes, including the redemption of pre¬
ferred stock and expenses incidental to the opening of
bakery

.

basis

38.81

Aug. 8, 1960, filed 75,000 shares of class A common s*ock
Price—$12 per share. Proceeds—For general funds. Of¬

—

Inc.-

for each

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—
202 Dwight Building, Jackson, Mich
Underwriter—Paul
C. Kimball & Co., Chicago, 111. Offering—Imminent.

debentures, due Dec. 15, 1980. Price—To be supplied by
amendment. Business
The corporation, directly and
through two subsidiaries, operates a chain of 67 super¬

Mertsh

the

on

subscription

ferred stock—65c convertible

Inc. (12/15)
Nov. 4, 1960 filed $2,000,000 of convertible subordinated

new

share.

May

Pro¬

Ma^sh Supermarkets,

a

of record

for

for each three such shares held and

preferred

new

offered

a

Mich. Underwriter—None.

definite.

markets,

will be

mobile
homes, trailers, boats, and motorcycles. Proceeds—For
working capital. Office—100 E. Michigan Ave., Jackson,

general corporate purposes.
Office—88-06
Van Wyck Expressway, Jamaica 18, N. Y.
Underwriter

Planning, Inc., New York, N. Y.

class

Nov.

contracts from dealers in property so

ceeds—For

—Fund

common

of

Prices—For common,

Underwriter—Batten & Co.,

of

of

holders

Corp.

The stock

shareholders
new

per

Electronics, Inc.
V
(letter of notification) 100,000 shares of
(par 10 cents).
Price — $3 per share.

Business—Manufacturers

Credit

held, the record date in each

View

1960

loans and for additions to the property.
Marquette Ave., Minneapolis 2, Minn. Un¬

writer

share

missiles, rockets, radar and marine items.

Address—Hagerstown, Md.
Washington, D. C.

A

ital.

of

Inc.
100,000 shares of

cents).

(12/12)
7, 1960 (letter of notification) 8,000 shares of class
capital stock (no par) and 2,000 shares of class B
capital stock (no par) to be offered in units of 4 shares

repay¬

Sept. 14, 1960 filed 25,874 shares of common stock and
1,000 shares of $100 par 6% cumulative convertible pre¬

Under¬

Proceeds—For expenses in the fabrication of sheet

metal parts for

Oct.

10

For

Nov.

ferred stock.

working capital.

Manufacturing

(letter of notification)

stock

—

New Canaan Co.

Price—

bank

of

Mobile

use

writer—McLaughlin, Kaufman & Co., New York City
&

Proceeds

23, Colo. Underwriters—Hayden. Stone & Co.
Lowell, Murphy & Co. (jointly). Offering—Indefin¬

itely postponed.

derwriter—Kalman & Co., Inc., St. Paul, Minn.

and data processing systems. Pro¬
indebtedness

Office—200 Stonehinge Lane, Carle Place, N. Y.

common

supplied by amendment.

ment

sale

share for each eight shares held.

one

Office—739

ceeds—Reduction

Marine

be

filed
and

Denver

and

1960, filed 228,346 shares of common stock to
subscription by common stockholders on

Electronic

manufacture

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 Driven

offered for

To

Corp.
110,000 shares of common stock (par
Price—$4.25 per share. Business—The design

cents).

21,

s

holders

Bldg., Denver, Colo. Underwriter—None.

Nov.

York City.

—

Minneapolis Gas Co.

man

Christensen Inc.,

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

per

Proceeds

Loral (Electronics Corp. (12/13)
Oct. 27, 1960 filed $5,000,000 of convertible subordinated

stock. Price

Proceeds—Together

the sale of shares to be issued

sometime in December.

share. Business—Production of beryllium oxide.
To pay two corporate notes; plant improve¬
ments;
research
and
experimentation
with
flotation
process; and working capital. Office—1430 First National

Ave., New York City.

common

Office—Denver, Colo. Underwriter—Peters, Writer
Denver, Colo. Offering — Expected

poses.

Pro¬

Mineral Concentrates & Chemical Co., Inc.
Nov. 10, 1960 filed 75,000 shares of common stock. Price

inventory, and working capital.; Office

Insurance Co.

a result of
options, in the amount of $1,106,407.50 for
the discharge of indebtedness and general
corporate pur¬

P. O.

—

Life

as

of debentures.

—

Western

with the proceeds from

The company will do

interim
ceeds

—

1960

Lawnservice Corp.

National

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

Lcrg Island Plastics Corp. (12/12)
(letter of notification) 300,000 shares of common
stock (10c par). Price—$1 per share. Business—Conver¬
sion of waste or scrap nylon into pellets for use in gears
and other
products, and the treatment of reclaimed
nylon so as to permit its mixture and blending with
various plastics. Proceeds
For additional equipment,

5,

Miami Inter¬

11

Sept. 13, 1960 filed 225,000 shares of
—To be
supplied by amendment.

Midwestern

•

Madiigan

—

definite.

Bank Bldg., Cincinnati, O. Underwriter—Kid¬
der, Peabody & Co., New York City (managing).

Oct. 26

•

Office

National

unsubscribed for shares).

Oct.

indebtedness, with the

purposes.

prop¬

plane*
balance

on

(letter of notification) 100,000 shares of com¬
mon
stock (par one cent).
Price—$3 per share. Pro¬
ceeds— For general corporate
purposes.
Office — 414
Livingston Avenue, North Babylon, N. Y. Underwrite*
—Fund Planning
Inc., New York, N. Y. Offering—In¬

pany.

for construction.

(heading

Jan.

insurance

supplied by amendment. Business—The operation of gas
transmission lines and distribution systems in Oklahoma

general corporate

National

homes,

Jan. 5

short-term

Airport, Miami, Fla. Underwriter — Lehman
Brothers, New York City (managing). Offering—Ex¬
pected in late December.

27, 1960 filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business
The firm

a

reduce

national

—

Lone

Dec.

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

both of New York

Oct.

New York, N. Y.

L.

Co.,

Northwest 13th St., Oklahoma City, Okla. Underwriter—
F. R. Burns & Co., Oklahoma City, Okla.
'
.
>
(

working capital.

and

&

(1/4)

(jointly).

National Airlines,

(letter of notification) 100,000 shares of
(par 25 cents). Price — $2.75 per share.
capital and surplus accounts. Office—318

1960

11,

common

Office—40 Gazza Blvd.,
&

Blauner

D.

delphia

Mid-America Life Insurance Co.

of

Manufacturers of aluminum furniture and other house¬
hold products. Proceeds—For additional
equipment; pur¬
chase of a building; plant expansion and
—Arnold Malkan

Milton

and

Corp.

general corporate purposes. Office—Ft.
Washington, Pa.
Underwriters—White, Weld & Co., New York City, Yarnall, Biddle & Co. and Stroud & Co., Inc., both of Phila¬

sells

Underwriters—M. L. Lee & Co., Inc

Plainview, N. Y.

notification) 100,000 shares of
(par $1). Price—$3 per share. Business—

stock

common

and

Proceeds—

City (managing). Offering—Indefinite.

Living Aluminum Inc.
3,

makes

equipment.

general corporate purposes including debt reduction,
working capital, and expansion. Office — Ames Court,

—

•

company

communications

and

National Aeronautical

37

Nov. 8, 1960 filed 60,000 shares of
$1 par common stock.
Price — To be supplied by amendment. Proceeds — For

For

invest¬

income

producing securities and mortgages.
Office
Philadelphia, Pa. Underwriter — Auchincloss,
Parker & Redpath,
Washington, D. C. (managing).
Oct,

Business—The

amendment.

Life Assurance Co. of
Pennsylvania
Nov. 29, 1960 filed
60,000 shares of capital stock. Price—
To

(2313)

repay

Continued

on

page

38

38

The Commercial and Financial Chronicle

(2314)

.

.

Thursday, December 8, I860

.

2235 S. Carmelina

capital expenditures, and for working capital. Office—
Ave., Los Angeles, Calif. Underwriter

Continued from page 37
the

thereof. Price—To be supplied by

present holders

Business

amendment.

The firm

—

produces metal

and

plastic filters for defense and consumer industries. Pro¬
ceeds—For expansion, working caiptal, and to finance
the company's entry into fibre glass manufacture. Office
—30 Sea Cliff Ave., Glen Cove, L. I., N. Y. Underwriter
—L. F. Rothschild & Co., New York City (managing).
Palm

(12/27-30)

Developers Limited

8, 1960, filed- 100,000 shares of common stock
(par 1 shilling). Price—$3 per share. Business — The

general corporate purposes. Office — 190 Duffy Ave.,
Hicksville, N. Y. Underwriter—Blaha & Co., Inc., 29-28

—None.

41st

Plastics & Fibers, Inc.
June 14 (letter of notification) 150,000 shares of common
stock (par 20 cents). Price—$2 per share. Proceeds—For

general corporate purposes. Office—Whitehead Avenue,
River, N. J. Underwriter—Pearson, Murphy &

South

Co., Inc., New York, N. Y. Note—The underwriter states
that this offering will be delayed.

Sept.

deal in land in the Bahamas.

company intends to
ceeds—To buy land,
Office—6

Pro¬

and for related corporate purposes.

Terrace, Centreville, Nassau, Bahamas. Under¬
Barnes & Co., Inc., New York City.

writer—David
•

.

(12/16)
Oct. 17, 1960 filed 125,000 shares of class A stock (par 75
cents), of which 42,500 shares are to be offered for the
account of the company and 72,500 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. The remaining 10,000 shares
Pathe

Equipment Co., Inc.

have been

acquired by the underwriter and Hampstead

Investing Corp., as a finder's fee. Price—$5 per share.
Business—Developing and producing automatic multiple
needle and specialized sewing equipment. Proceeds—For
general corporate purposes. Office — 16 Leliart's Land.
East Paterson, N. J. Underwriters —Amos Treat & Co.,
Inc. and William Stix Wasserman & Co., Inc., New York,

Plated Wires & Electronics,
Nov.

16,

common

(letter

1960
stock

(par

of
10

shares

N. Y. Underwriter—The James Co., 369 Lexington
Avenue, New York 17, N. Y. Offering—Expected somer-'

non,

of

share.

per

time in January.

of
assorted
wires, including
special wires for high temperature controls. Proceeds— '
Business—Manufacturers

For general corporate purposes.

•

Real

Office—63 Main Street,

Ansonia, Conn. Underwriter—J.
New York, .N Y.

B.

Coburn

Oct.

Associates,

Co.

Nov.

ness

Offering—Expected in

Patrician

(12/16)
14, 1960 filed $800,000 of 7% unsecured subordinated

Oct.

Paper Co., Inc.

Pocket

Inc.

Books,

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
common stock. Price—To be supplied by amendment.
company manufactures facial and toilet
tissues. Proceeds—For acquisition of property, to acquire
machinery and equipment, and for repayment of certain
loans.
Office
485 Lexington Ave., New York, N. Y.
Underwriter
Hill, Darlington & Grimm, New York,
of

Business—The

—

—

N. Y.
Peerless

Nov.

16,

Mortgage Co.
1960 (letter of notification)
.

430,000 shares

of

stock

Proceeds—For

Peerless

Tube

Co.

(1/11)
Nov. 22, 1960 filed 150,000 shares of capital stock. Price
—To be supplied by amendment. Business—The produc¬
tion and sale of collapsible metal tubes and aerosol con¬
tainers. Proceeds—To increase automation of

production
lines, for research and development, and the balance
for working capital. Office—Bloomfield, N. J.
Under¬
writer—Winslow, Cohu & Stetson, Inc., New York City.
•

Penobscot

Chemical

Fibre

Co.

(1/16)

Oct. 24, 1960 filed $3,250,000 of convertible subordinated

debentures, due 1980. Price—To be supplied by amend¬
ment. Business—Makes wood pulp, which it sells directly
to the users, nearly all of whom are paper manufactur¬
Proceeds—For

ers.

indebtedness

of

construction, and for the reduction

incurred

for

construction.

Office—211

Congress St., Boston, Mass. Underwriter—Coffin & Burr,
Inc., Boston, Mass. (managing).
'

ment. Proceeds
For the purchase of electronic test
equipment and machinery; for advertising and sales pro¬
motion; for research and development; for the acquisi¬
—

tion of basic

raw materials; for reduction of
outstanding
indebtedness; for working capital and for general cor¬
porate purposes. Office—81 Water St., Ossining, N. Y.

—

Expected sometime in

January.

Philadelphia

Aquarium, Inc.

Oct. 14,

1960 filed $1,700,000 of 6% debentures due 1975
and 170,000 shares of capital stock (par 50 cents) to be
offered in units, each consisting of one $100 debenture
and 10 shares of stock.

Operation

^

of

Price—$150

aquarium

an

in

or

unit. Business—
about Philadelphia.
per

Proceeds—To acquire ground and to construct

an

aquari¬

building or buildings. Office—2635 Fidelity-Philadel¬
phia Trust Building. Philadelphia, Pa.
Underwriter—

um

Stroud & Co., Inc.,

Philadelphia, Pa. Offering—Expected

•

Polysomes, Inc.

Nov.

(1/10)

18,

with rights to expire at 3:30 p.m. on Dec. 14. Price—U. S.

price is 1.3 cents

per

share; Philippine price is 3 centavos

per share. Proceeds — To be added to the company's
working capital. Office—Soriano Bldg., Manila, Philip¬
pines. Underwriter—None. Note—The subscription offer

has been extended.

—For retirement of

ital. Office

—

922

Underwriter—First
ton. D.

a

short term note and working cap¬

Burlington Ave., Silver Spring, Md.
Investment Planning Co., Washing¬

C.

Pioneer

Corp.
Oct. 26, 1960 filed 217,902 shares of common
stock, to
be, offered to holders of the outstanding common on the
basis
per

of

one

new

share

share. Proceeds




—

for

each

To retire

share

held.

current

Price—$1

liabilities, for

distribution

and

of

magnetic

Resist©

of

(12/16)

Chemical, Inc.

(par
cents),. Price—$2.50 per share. Business—The firm
makes and sells protective coatings for packaging and

fabrics, and products used in insulation. Proceeds—For
working capital ($235,358), with the balance for ma¬
chinery, equipment, and general corporate purposes^
Office
New Castle County Air Base, New Castle

(12/15)

—

County, Del. Underwriter—Amos Treat & Co., Inc., New
York

Nov.

the

development and merchandising of new commercial
sound process for industrial and commercial ad¬
vertising. Proceeds—For working capital. Office—480
Lexington Avenue, New York City. Underwriters—M. H.
Meyerson & Co., Ltd., 15 William Street, New York City
Karen

and Selected

Investors, Brooklyn, New York.

Popell

(L. F.)

Securities <Co»pirrNewoYork

Vr

one

share for each three shares of

common

Distribution, sale and installation

of

stock

January.

Business—

•

building, insulat¬

(par $1). Price—To be related to the price of the

firm's shares

ban

Investors

City
Nov.

Dec.

Riddle

Aug.

Place,

Newark,

For

N.

construction.

J.

Underwriter

—

Merrill

Pierce, Fenner & Smith Inc., New York City
ing).

19,

Airlines,

•

Ritter

Co., Inc. (12/21)
'
/
•
filed $4,500,000 of convertible subordinated
debentures, due 1980. Price—To be supplied by amend¬

ment.

Lynch,*
(manag¬

Business

dental

•

—

retire

Bache

with the balance for
Office—New Haven, Conn.
Un¬

indebtedness,
&

Co., New York City

(managing).

Offering—Postponed.
R. E. D. M. Corp.
1
Sept. 27, 1960 filed 100,000 shares of common stock. Price
$3.50 per share. Proceeds—For working capital ($217,250) and production machinery and equipment ($50,000).
.

Office—Little Falls, N. J. Underwriter—Robert Edelstein

Co., Inc., New York City. Offering—Expected some¬
January.

time in
•

Radar

Measurements

Corp. (1/16)
Sept. 28, 1960 (letter of notification) 85,700 shares of
common stock (par $1).
Price—$3.50 per share. Business
—Manufacturers of electronic equipment. Proceeds—For

firm

Proceeds

manufactures
—

To

retire

and

medical

$3,350,000

of

Rohm & Haas Co.

17, 1960 filed 9,000 shares of outstanding common
(par $20).- Price—To be supplied by amendment.

estate of Otto

To

The

porate purposes.'- Office—Ritter Park, Rochester, N. Y.
Underwriter—Lehman Brothers, New York City (managing).
•
■
j.r ,..'' ■; ■.
" - •/ :.. :•
-• .
;
. -*
Nov.

Price—To be supplied by amendment. Business—Makes
and sells electronic air purifiers and range hoods.
Pro¬

—

equipment.

"short term bank loans, with the balance for general cor¬

Park

Corp.

expenditures.

con¬

Nov. 17, 1960

of the issuing company and 50,000 shares, representing
outstanding stock, are to be offered for the account of
Joseph Stein, President, the present holder thereof.

—

v V

subordinated

M; A. T. S. contract, and to acquire aircraft. Office—In¬

stock

capital

Inc.

1960 filed $2,250,000 of 6%

Aug. 3, 1960 filed 250,000 shares of common stock, of
which 200,000 shares are to be offered for the.account

ceeds

ac¬

—

ternational Airport, Miami, Fla. Underwriter—James H.
'Price & Co., Coral Gables, Fla., and New York Citv.

(12/14)

Office— 80

effective

vertible debentures. Price—At 100% of principal amount.
—
To be used as operating capital to fulfill

1960 filed 250,000 shares of $100 par cumula¬
tive preferred stock. Price—To be supplied by amend¬
—

was

Proceeds

(12/15)

23,

Proceeds

statement

—

of the issuer.

ment.

Note—This

1, 1960 filed 130,000 outstanding shares of class A
stock. Price—To be supplied by amendment.

holders.

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
Public Service Electric & Gas Co.

(managing).
18.

counting forms and systems. Proceeds—To selling stock¬
Office
800 Germantown St., Dayton, Ohio.
'Underwriters
H. M. Byllesby & Co., Chicago, and
Grant-Brownell & Co,, Dayton, Ohio (managing).
'

Electronics, Inc.
Nov. 14, 1960 (letter of notification) 150,000 shares of
capital stock (no par). Price—$1 per share. Proceeds—
To retire a bank loan and to purchase building inven¬
tories and for working capital. Office—5335 W. 102nd
St., Los Angeles, Calif. Underwriter—Garat & Polonitza,
Inc., Los Angeles, Calif.

•

New York City. Underwriters—Lehman
Reynolds & Co. Inc., both of New York

and

Business—The manufacture and sale of business and

Precisioncraft

Nov.

Exchange. Proceeds

officers, the selling stockholders. Office

common

Underwriter—Subur¬
N. Y.

Preferred Risk Life Assurance Co.

the New York Stock

ie Reynolds & Reynolds Co.

development of chemical products.
corporate purposes. Office—-336

general

Corp., Uniondale,

on

To two company
—666 Fifth Ave.,

&

Uniondale Ave., Uniondale, N. Y.

(12/14)

Inc.

Oct. 28, 1960 filed 130,000 shares of outstanding common

Brothers

and

wide

;

Revlon,

stock

Development Corp.
Nov. 18, 1960 (letter of notification) 50,000 shares of
class A stock (par 10 cents). Price—$5 per share. Busi¬
Proceeds—For

a

ing capital and expansion. Office—515 W. 57th St., New
City. Underwriter—Shearson, Hammill & Co., New
York City (managing). Offering ^ Expected in early

ment.

Research

operates

York

ing and acoustical products. Proceeds—For plant con¬
struction; expansion of its distribuiton of Perma-Glaze
and working capital. Office—2501 Northwest 75th
Street,
Miami, Fla. Underwriter—To be supplied by amend¬
Porce-Cote

issuer

The

The Forum of the Twelve Caesars. Proceeds—For work¬

Co.

Price—To be supplied by amendment.

—

variety of restaurants, coffee shops, and cafeterias, mostr
ly in New York City, including The Four Seasons and

18, 1960 filed 99,996 shares of common stock to be
offered for subscription by common stockholders at the
held.

Business

amendment.

Nov.

rate of

16,

.

City,
;

..

Inc.

1960 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

The firm also plans to enter

(managing);

City.

Restaurant Associates,

color

&

Electronics

Co.

Insurance

10

(letter of notification) 70,000 shares of
cent par common stock. Price—$3 per share. Business
—The company, formed last July, will act as theatrical
producers and will produce jazz festivals, concerts, rec¬

derwriter

Photogrammetry, Inc.
Aug. 10, 1960 (letter of notification) 13,000 shares of
common stock (par $1). Price—$3.50 per share. Proceeds

•

1960

Puritron

Philippine Oil Development Co., Inc.

manufacture

com¬

Busi-:

Aug. 29, 1960 filed 200,000 shares of common stock

1

in January.

March 30 filed 103,452,615 shares of capital stock
being
offered for subscription by stockholders of record
Aug.
25, at the rate of one new share for each 5% shares held

of outstanding

supplied by amendment.

Proceeds — To the Pru-.
America, the selling stock¬
holder. Office—15 Great Pasture Road, Danbury, Conn;
Underwriter—Emanuel, Deetjen & Co., New York City
(managing). Offering—Expected some time in January,
dential

Underwriters—White, Weld & Co. and Goldman, Sachs
& Co., both of New York (managing).

Underwriter—S. B. Cantor & Co., and Farrell Securities

Co., New York City. Offering

150,000 shares

Price—To be

—

ness—Research

• 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¬

1860 filed

The

—

tape, film and recording discs.

mid-

17, 1960 filed 600,000 outstanding shares of common
stock (par 50 cents). Price—To be supplied by amend¬
ment.
Business
The issuer publishes and distributes
paperback books, distributes publications of other pub¬
lishers, and sells phonograph records. Proceeds^—To sell¬
ing stockholders. Office—630 Fifth Ave., New York City.

ords and commercial films.

(par 20 cents). Price—60 cents per share.
general corporate purposes. Office—403
Ursula Street, P. O. Box 187, Aurora, Colo. Underwriter
—Copley & Co., Colorado Springs, Colo.
common

23,

Soundcrafi Corp.

stock.

mon

Nov.
•

trust

.

Reeves

January.

N. Y.

interest.

per

—

St., Cleveland, Ohio. Underwriters—Hemphill, Noyes &
&

*

share. Business—An open-end real estate
specializing in investment real estate.
Office
606 Bank of America Bldg., San Diego, Calif.
Distributor—Real Estate Mutual Distributors, Inc., San
Diego, Calif.
;

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 requirihg ad¬
vanced technology. Froceeds — To repay indebtedness
and the balance for working capital. Office—3781 E. 77th
Estabrook

'

14, 1960 filed 200,000 shares of beneficial

investment

r

Pneumodynamics Corp.

and

;

,

Fund

Mutual

Estate

Price—$5

Nov.

Co.

,

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-t

Inc.

notification) 75,000
cents).
Price — $4

Avenue, Long Island City 1, N. Y.

Rajac Self-service, Inc.
Nov. 15, I960 filed 154,375 shares of common stock (10c
par). Price—$3 per share. Proceeds—$30,000 will be used
to pay an outstanding note, $87,500 will be used for the
acquisition, constructing, and equipping of an additional

Proceeds—-To

selling stockholders, the exfecutors of the
Haas, former Board Chairman and Presi¬

dent. Office—222 West

Washington Square, Philadelphia,
Underwriters—Drexel & Co., Philadelphia, Pa., and
Kidder, Peabody & Co., New York City (managing). Of¬
fering—Expected in early January.
Pa.

Saye-Co Veterans & Service & Department
Stores, Inc.
Sept. 26, 1960 filed 163,636 shares of common stock, of
which 127,273 shares are to be offered for the account
of the issuing, company and 36,363
shares, representing
outstanding stock, are to be offered for the account of
.

the present holders thereof.

amendment. Business

—

Price

—

To be

ment store and gasoline service station

is

restricted

employees of

primarily

supplied by
depart¬

The company operates a

to

the

use

of which

personnel,
non-profit organizations, and employees of
veterans, military

firms doing government contract work/Proceeds—For
general corporate purposes, including debt reduction and
working capital. Office—3176 Frontier St., San Diego,
Calif. Underwriter
Dempsey-Tegeler & Co., St. Louis,
—

Volume

Mo.

192

(managing).

Number 6010

Offering'

.

.

The Commercial and Financial Chronicle

.

in

Expected

mid-to-late

December.

(G.

T.)
Schjeltiahl Co.
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
Nov.

of the

outstanding

basis of $100 prin¬
cipal amount of debentures for each 100 common shares
common

stock

on

Price—To

held.

be supplied by amendment}. Business—
development and production of plastics
and electronic instrumentation systems. Proceeds—For
working capital, the acquisition and development of
Plymouth Industrial Products, Inc., Sheboygan, Wis., and

The

for

research,

expansion. Office—Northfield, Minn.

Underwriter—
Craig-Hallum, Inc., Minneapolis, Minn, (managing).

• School
Pictures, Inc. (12/13)
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.
of New York City,
and Kroeze, McLarty & Co., of
Jackson, Miss.
K* '

Homes, Inc.
Nov. 7, 1960. (letter of notification) 100,000 * shares of
common stock (par 10 cents). Price—$3 per share. Busi¬
ness
Manufacture, assembly and sale of homes and
home sectional components. Proceeds—For general cor¬
porate purposes. Office—200 Saw Mill River Rd., Haw¬
thorne, N. Y. Underwriters—Richard Bruce & Co., Inc.
and Fox & Walters, Inc., New York, N. Y.
.

—

Self Service

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¬
50 shares of

unit. Proceeds
pay

off

—

certain

Office—2826

To

move

bank

Mt.

common

and

stock. Price

equip

indebtedness

Carmel' Ave.,

N.

new

a

for

and

Hills,

—

$200 per

warehouse;
new lines.

Glenside,

Pa.

Underwriter—Woodcock, Moyer, Fricke & French, Inc.,
Philadelphia, Pa. Offering—Expected in early January.
'

Shatterproof Glass Corp.
Oct. 12, 1960 filed 100,000 shares of common stock (par
$1), of which 50,000 shares are to be offered for the
account of the

issuing company and 50,000 shares, repre¬
senting outstanding stock, are to be oifered lor me ac¬
count of the present holders thereof, Price—To be sup¬
plied by amendment. Business—The company makes and
sells

if Southern Gas & Water Co.
Nov. 28, 1960 (letter of notification) 12,000 shares of
common stock (no par). Proceeds—To selling stockhold¬
ers. Office—179 Summer St., Charleston, W. Va. Under¬
writer—Johnson, Lane, Space Corp., Savannah, Ga.
•

Southwest

Gas

Corp.

Nov.

7, 1960 filed 150,000 shares of common stock. Price
—To be supplied by amendment. Business—The sale and
distribution of natural
gas for domestic, commercial,
agricultural, and industrial uses in parts of California,

Nevada, and Arizona. Proceeds—To reduce indebtedness,
with the balance for working capital. Office—2011 Las
Vegas Blvd. South, Las Vegas, Nev. Underwriter—East¬
man
Dillon, Union Securities & Co., New York City
(managing),
Southwestern

Capital Corp.

Sept. 30, 1960 filed 1,000,000 shares of common stock.
Price—$3 per share. Business—A closed-end investment
company. Proceeds—For investment purposes. Office—
1326 Garnet

Ave., San Diego, Calif. Underwriter—None.

Southwestern Oil Producers,

laminated

$2 per share.
and the

stock.

Price—

Proceeds—For the drilling of three welli

balance for working

capital.

Office—2720 West

Lane, Dallas.- Underwriter — Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.
Mockingbird

Speedee Mart, Inc.
1960 filed 90,000 shares of common stock. Price
—To be supplied by amendment. Business—Enfranchis¬
ing others to manage and operate retail food stores under
the name of "Speedee Mart." Proceeds—For acquisitions,
equipment and store inventories. Office — 7988 Normal
Ave., La Mesa, Calif. Underwriter—J. A. Hogle & Co.,
Salt Lake City, Utah.
Nov. 21,

Speedry Chemical Products Inc. (12/20)
Sept. 28, 1960 filed $2,000,000 of convertible subordinated
debentures, due Dec. 1, 1975, and 60,000 shares of class
common stock
(50c par). Prices—To be supplied by
amendment. Business—The company makes special pur¬
A

inks and devices used in their application. Proceeds
expansion, acquisitions, and the retirement of
loans. Office — 91-31 121st St., Richmond Hill,
Queens, L. I., N. Y. Underwriter — S. D. Fuller & Co.,
New York City (managing).

pose

—For
bank

Stancil-Hoffman

(12/15)

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.

safety plate and sheet glass, primarily
to the automotive replacement market, and sells its prod¬
ucts for use as original equipment to bus, truck, tele¬
vision, and farm and road equipment manufacturers.,
Proceeds—To repay current short-term bank loans' in¬
curred to supplement working capital. Office — 4815
Cabot St., Detroit, Mich. Underwriters—Dempsey-Tegeler & Co., St. Louis, Mo./ and Straus, Blosser & Mc¬
Dowell, Chicago, 111. (managing). Offering—Expected in

$350,000

mid-to-late December.

due Nov.

•

S3;inn

Industries

<

.

,

.

,

.

r

Inc.

Nov. 29, 1960

filed 150,000 shares of common stock. Price
—$6 per share. Business—The manufacture, assembly and
sale of aircraft and missile components and the construc¬
tion

industrial

of

and

research

facilities.

Proceeds^-To

Office"-^ 921* North"

Underwriter—Pacific

Highland

Ave., Hollywood, Calif.
Coast Securities Co., San Francisco,

Shellf Homes

Standard &

Nov.

1960 filed 210,000 shares of common stock and
of 9% subordinated sinking fund debentures,
1, 1985, with warrants, to be offered in units
consisting of six common shares, a $10 debenture, and
two warrants.
Price—To be-supplied by amendment.
1,

construction, mortgage funds, and work¬

Proceeds—For

ing capital." Office—Miami Beach, Fla. Underwriters—
Aetna Securities Corp. and D. Gleich Co., both of New
City, and Roman & Johnson, of Ft. Lauderdale, Fla.

York

writer—Myron A. Lomasney & Co., New York City.

70,000 shares of
common
stock (par 10 cents). Price—$4.25 per share.
Proceeds—For working capital.
Office—809 Kennedy
Bldg., Tulsa, Okla. Underwriters—Batten & Co., Wash¬
ington, D. C. and F. R. Burns & Co., Oklahoma City}

a

,

company and

100,000, being outstanding shares, by pres¬
Price—To be supplied by amendment)

ent stockholders.

produces automobile hub caps,
washroom dispensers and other janitorial supplies. Pro¬
Business—Designs

and

outstanding bank loans and to increase
Office
7701
East ^Compton
Boulevard,*

ceeds—To repay

inventories.

—

Calif.
Underwriter — H. Hentz & Co. and
Federman, Stonehill & Co., both of New York City
(managing). 'Offering — Expected in late December to
early January.
\
Paramount,

_

Simplex Wire & Cable Co.

Cambridge, Mass. Underwriter—Paine, Webber, Jackson
& Curtis, New York
City (managing). Offering—In¬
definite.'

■/

Slick Airways,

Oct. 27,

1960 filed 600,000 shares of common stock

(no

par). Price—To be supplied by- amendment. Business—
The company was engaged exclusively as a contract and
charter carrier until July 1, 1960 when it diversified by

acquiring Illinois Shade Cloth Corp. Proceeds—For gen¬
eral corporate purposes. Office—3000 No. Clybourn Ave.,
Burbank, Calif. Underwriters — Auchincloss, Parker &
Redpath and Allen & Co., both of New York City (man¬
aging). Offering—Indefinitely postponed.
Solitron

Devices, Inc.
Sept. 9, 1960 filed $400,000 of 6% subordinated convert¬
ible debentures, due 1967. Price—At pari Business—The
company makes and sells solid state devices. Proceeds—
For general corporate purposes. Office—67 South Lex¬
ington Ave., White Plains, N. Y. Underwriter—Casper
Rogers & Co., New York City. Offering—Expected some¬
•

South Central

;

-

Natural Gas Corp.

(12/20)

Oct.

13, 1960 filed 250,000 shares of common stock (par
10 cents). Price—$3 per share. Business—The company,

which

was

organized in June 1960, is in the business of

producing natural gas and oil. Proceeds —- For working
capital, with the balance for rental payments, loan re¬
payments, drilling, and related expenditures. Office—
1300 Oil & Gas Bldg., New Orleans, La. Underwriter—;
Willis E. Burnside & Co., Inc., New York City.
Note—
This statement

was




Okla.

withdrawn Nov. 23.

(letter

Hfication)

nt

■

1

;

,

of

1

if Statmaster Corp. (12/15)
Nov. 25, 1960 (letter of notification) $125,000 of fiveyear 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
stock. Price—$100 per unit/Proceeds

shares of common

loan and for
Hialeah, Fla.
Island City, N. Y.

purchase inventory, retire a bank
working capital. Office—3552 10th Court,

^-To

•

Steel Crest Homes,

Swingline, Inc. (12/15)
25, 1960 filed 250,OUU shares of class A stock (par
$1), of which 50,000 shades will be offered for the ac¬
count of the issuing cornpany and 200,000 shares, repre¬
senting outstanding stock, to be offered for the account
Oct.

of the company president and his wife, the selling stock¬
holders. Price—To be supplied by amendment, business
—The

makes and sells stapling machines and

company

various other office

supplies, and has a stock interest in
Co., of Massachusetts, which makes and
record-keeping and other commercial stationery
supplies. Proceeds—For new plant and general corporate
purposes of a subsidiary, Ace Fastener Corp., of Illinois,
Wilson

Jones

sells

Office—32-00 Skillman Avenue, Long Island City, L. I.,
N. Y. Underwriter
Paine, Webber, Jackson & Curtis.
—

New York

City (managing).

"Taro-Vit"
Nov.

a

Chemical

Industries

Ltd.

25,

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
supplement, and pharmaceutical and chemical prod-*
ucts. Proceeds
$750,000 for expansion; $170,J00 for
equipment and working capital; and $130,000 for repay¬
—

food

—

of

ment

loan. Office

a

—

P.

O. Box

4859, Haifa, Israel.

Underwriter—None.
Tech-Ohm
June

29,

1960,

common

Electronics, Inc.
(letter of notification)

stock

100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
ceeds
For general corporate purposes. Office — 36-11
33rd
Street, Long Island City, N. Y. Underwriter—
—

Edward

issue

Lewis

Co., Inc., New York, N. Y.

refiled

was

on

Note—This

Sept. 6.

Tel Autograph

Corp.
18, 1960 filed an unspecified number of shares of
common stock
(par value $1), to be offered to common
stockholders for subscription. Price—To be supplied by

Nov.

amendment.
of

Proceeds—For

initial

Telescriber compatible

a

with

production expenses
A. T. & T. analog

an

subset; for initial production expenses of facsimile equip¬
its subsidiary Hogan Faximile Corp.,
and the balance for the reduction of indebtedness. Office

ment to be made by

—8700 Bellanca Avenue, Los

Angeles, Calif. Underwrit¬
Co., and Richard J. Buck & Co., both of
New York City, and Chace, Whiteside & Winslow, Inc.,
Boston, Mass. Offering—Expected some time in January.
ers—Baird

•

&

Telecolor

1960 (letter of notification) 150,000 shares of
capital stock (par 25 cents) of which 100,000
shares are to be offered by officers. Price—$2 per share.
July 25,

common

equipment and for working capital.
Ave., Hollywood, Calif. Under¬
writer—Raymond Moore & Co., Los Angeles, Calif. Note
—

7922

—This letter

Melrose

was

withdrawn Nov. 14.

•

Telephone & Electronics Corp. (12/19-23)
Aug. 18, 1960 (letter of notification) 52,980 shares o£
common stock (par 25 cents). Price—$5 per share. Pro¬
ceeds—For general corporate purposes. Business—Elec¬
tronic communications equipment and automatic, loud-*

speaking telephone. Office—7 East 42nd St., New York
17, N. Y. Underwriter—Equity Securities Co., New York,
•

Tele-Tronics

Co.

(12/19-23)

(letter of notification) 100,000 shares ot
common stock
(par 40 cents). Price—$3 per share. Pro¬
ceeds—For plant expansion, additional machinery, ac¬
quisition of new facilities ana working capital. Office—•
180 S. Main St., Ambler, Pa. Underwriter—Woodcock,
Moyer, Fricke & French. Inc., Philadelphia, Pa.
Aug.

10,

1960

if Texas Eastern Transmission Corp.
Dec. 2, 1960 filed $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—
Memorial Professional Bldg., Houston, Texas.
Under¬
writer—Dillon, Read & Co. Inc. (managing). Offering—
Expected sometime in January.
Texas Research & Electronic

Inc.

22, 1960 filed 180,000 shares of
$45,000 of 8% subordinated sinking fund
face amount), due Sept. 1,
1981; and
exercisable at $15 for the purchase of
Nov.

stock;
debentures ($10
common

45,000 warrants

Corp.

1960 filed 600,000 shares of common stock. Price
—$1.15 per share. Business—Engaged in various phases
of electronics. Proceeds—For acquisition of small busi¬
Oct. 3,

Dallas, Tex. Underwriter
Co., Inc., Minneapolis, Minn.

Office—Meadows Bldg.,

two shares and
90,000 underlying common
shares and 45,000 underlying 8% debentures were also

nesses.

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¬

Sept. 13, 1960 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¬

one

Inc.

time in December.

1960

1,

Underwriter—Blaha & Co., Inc., Long

Sept. 28, 1960 filed 118,000 shares of outstanding capital
stock/ Price—To be supplied by amendment; Office-

•

N. Y.

Starfire Boat Corp.

Sept.

Shore-Cainevar, Inc.
/
Nov. 25/ 1960 filed 200,000 common shares, of which
100,000 shares will be offered for public sale by the

selling stockholders. Office—39 Old Col¬
Ave., Boston, Mass. Underwriter—Clayton Securities
Corp., Boston, Mass.

Office

Corp.

bank loan, for expansion and inventory, and
for working capital. Office — Wilmington, Del. Under¬
repay

Proceeds—To

Proceeds—To lease

Calif.
•

39

ony

$0.60

Inc.

March 23 filed 700,000 shares of common

Seaboard

tures and

(2315)

debenture

(for

which

financing of homes sold by the company
subsidiary, and for working capital. Office—

ceeds—For the
and

its

Center Square, Pa.

Underwriters—Marron, Sloss & Co.,

Inc., New York City and Harrison & Co., Philadelphia,
January.

—Naftalin &
•

Therm-Air

military and commercial use. Proceeds—To payfor research and development, and for working
capital. Office—1000 North Division St., Peekskill, N. Y.
Underwriter—G. Everett Parks & Co., Inc., New York
City.
•

—

•

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.
ing—Expected sometime in January.

Offer¬

if Super Market Distributors, Inc.
Dec. 1, 1960 filed 200,000 outstanding, shares of common
stock. Price—$5 per share. Business—The wholesale dis¬
tribution of non-food consumer items to supermarkets.

Inc.

loans,

(12/13)
Aug. 22, 1960 filed 150,000 outstanding shares of class A
stock (par 75 cents). Price—To be supplied by amend¬
ment. Business
The company makes heating elements
for small appliances and components for major appli¬
ances, and related items. Proceeds—To selling stockhold¬
ers. Office—429-33 East 164 St., New York City. Under¬
writer—Francis I. duPont & Co., New York City.
Manufacturing Corp.

Co.,

ment for

Pa. Offering—Expected in late

SiiSB-man

Mfg.

.

Tip Top Products Co.

Oct.

4, 1960 filed 60,000 shares of class A common stock.
supplied by amendment. Address—Omaha,
Underwriters—J. Cliff Rahel & Co., Omaha, Neb.
First Trust Co. of Lincoln, Lincoln, Neb. Offering—

Price—To be
Neb.
and

Expected in December.

if Town Photolab, Inc.
Nov. 30, 1960 filed 150,000 shares of common stock. Price
—$4 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 late Jan.
Underwater Storage,
Nov.

8,

common

1960

Inc.

(letter of notification) 100,000 shares of
Price—$3 per share. Proceeds-

stock (par $1).

Continued

on

page

40

40

(2316)

Continued from

The Commercial and Financial
Chronicle

page

39

:

,

.

advertising and for working capital. Office—Red Lion,

Pa.

Underwriters—B.

For

working capital.
Office—1028 Connecticut Ave.,
N. W.,
Washington, D. C. Underwriter—Searight, Ahalt
&
O'Connor, Inc., New York, N. Y. Offering—Expected
in early
January.
^

mons

.

Unifloat

17,

Marine

1960
stock

common

ceeds—To

Structures

(letter
(par

Corp.
notification) 100,000 shares of

of

cent). Price—$3

one

purchase

share. Pro¬

per

materials, maintenance of in¬
ventory, machinery and equipment, and for working
capital. Office—204 E. Washington St., Petaluma, Calif.
raw

Underwriter—To be supplied by amendment.

Nov.

14,

Inc.
Nov. 28, 1960 (letter of notification)
100,000 shares of
common stock (par $1). Price—$3 per share. Proceeds—
To retire outstanding indebtedness and for
working cap¬
ital.

Office—2136

Underwriter

S.

Garfield

Ave., Los Angeles, Calif.
San Fran¬

Pacific Coast Securities Co.,

—

cisco, Calif.
Enterprises,

Inc.

1967, and 11,000 shares of

sub¬

July 1,
(no par) to be

common stock

offered

in

common

stock; and 37,500 shares of common stock (no
be offered for subscription by stockholders in

par)

to

units

of

debenture

one

and

250

units of 250 shares for the endorsement of the

shares

of

company's

notes in
and

multiples of $1,000 each. Price—For debentures
$1,400 per unit; for common: $1,000 per
general corporate purposes. Office
Dermon
Bldg., Memphis, Tenn.
Underwriter—

common

unit.

Proceeds—For

—704

and

H,

SI.

.

Sim-

'

■

ital. Office—6815 TorderaSV Coral Gables, Fla., Under¬
writer—None. Note—The SEC has challenged the accu-:

this statement.
at the request

of
29

,

A hearing was
of the company
been announced.

Vector

Industries, Inc. (12/12-13)
(letter of notification) 150,000 shares of
common stock (par 10
cents). Price—$2 per share. Pro¬
ceeds—To pay in full the remainder of such
subscription
1960

search and development of a synchro-gear assembly
atomic submarines. Proceeds—For new equipment,

stock of International Data

Systems, Inc. and
to retire outstanding notes. Office—2321 Forest
Lane,
Garland, Tex. Underwriter—Plymouth Securities Corp.,

for

the?

repayment of loans, and working capital. Office—Erie,
Pa. Underwriter—Lee Higginson Corp., New York City

New York City.

(managing). Offering—Postponed.

Laboratories, Co., Inc.

26,

class A

1960

(letter

of

notification)

90,000

shares

of

stock

common

(par $1). Price—$2.75 per share.
Proceeds—To provide funds for further expansion of the
company's operations. Office—5455 Randolph Rd.j Rock-

ATTENTION

UNDERWRITERS!

Do you have an issue you're planning to register?

ville, Md. Underwriter—First Investment Planning Co.,
Washington, D. C.

Our

Corporation News Department would like

to know about it

^Western Beryl Corp. of Nevada
Nov. 22, 1960 (letter of
notification) 300,000 shares of
common stock. Price—At
par ($1 per share). Proceeds
—For mining operations. Office—248 S.
Sierra St., Suite
1, Reno, Nev. Underwriter—None.

that

so

can

we

prepare an

item

similar to those you'll find hereunder.
Would
write

telephone

you

REctor

at

us

2-9570

or

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

us

None.
★

United

Western Factors,

Gas

Corp. (12/20)
Nov. 29, 1960 filed a maximum of
161,573 shares of $10
par common stock. Price—To be supplied by amend¬
ment. Proceeds
To the selling
stockholder, Electric
—

Bond

&

—To

be

Share

Co.

Office—Shreveport, La. Underwriter

determined

by

competitive

bidding.

Probable

bidders: Kidder, Peabody & Co.; Merrill
Lynch, Pierce,
Fenner & Smith Inc.; First Boston
Corp. Bids—To be
received Dec. 20 up to 3:45 p.m.
(EST) in room 2033,
2

Rector

St.,

New

York

City.

Information

Meeting—

Scheduled for 10:30 a.m., Dec. 16 in Room
240, 2 Rector

St., New York City.
United

June 29,

—$1.50
may

Sept. 27, 1960 filed
6% convertible serial
subordinated debentures. Price—At par. Business—The
issuer's major activity is the
warehousing of grain under
contract to the U. S. Commodity Credit

Corp. Proceeds
expansion, working capital, and loans to subsid¬
iaries.
Office—1235 Shadowdale, Houston, Texas.
Un¬
derwriter
Dempsey-Tegeler & Co., St. Louis, Mo.
Offering—Expected in mid-December.
—For

—

International

Fund

Ltd.

ities.

Office

share.

Westminster

Fund,

Inc.

Oct. 20, 1960 filed 1,000,000 shares of common stock
(par
Bermuda pound). Price—$12.50 per share. Business
—This is a new open-end mutual fund. Proceeds—For
one

investment.

Office—Bank of Bermuda Bldg.,
Hamilton,
Underwriters—Kidder, Peabody & Co., Bache
& Co., and Francis I. du Pont &
Co., all of New York

(12/15)

For

14, 1960 filed 4,000,000 shares of capital stock. Busi¬
ness—This is a new mutual fund, and its intention
is to
offer holders of at least
$25,000 worth of acceptable
the

will

opportunity

of

exchanging

one

share in the

receive

each

stock

American

and marketing
equipment. Proceeds—For production,
research and
development; for repayment of loans and
for working capital.
Office—Fanwood, N. J. Underwriter

Approved

United

Pacific Aluminum
Corp.
Aug. 24, 1960 filed $7,750,000 of convertible subordinated
debentures, due 1975. Price—To be supplied by amend¬
ment.

will

Proceeds—Together with

be

minum

other funds, the proceeds
erection of a primary alu¬

used to pay for the
reduction facility. Office

Underwriter—Straus,
(managing).

—

Los

Angeles, Calif.

Blosser & McDowell, Chicago, 111.

★ U. S. Diversified Interests
Nov.

^,

28, 1960 (letter of notification)
150,000 shares of
common stock (par $1). Price—$2 per share. Proceeds—
For

loan

a

to

the

company's subsidiary; to purchase
business, and for expansion. Office—3033 N.
Central Ave.,
Phoenix, Ariz. Underwriter—None.
assets

of

a

United

States Shell

Oct.

Homes, Inc.

(12/12-16)
capital debentures,

28, 1960 filed $2,500,000 of 8%
15, 1975, with warrants attached for the
pur¬
chase of 50,000 shares of
common
stock, and 100,000

due

Dec.

shares of such stock.
In units

These securities

are

consisting of $100 of debentures

warrants

for

to

be

with

offered

attached

the

purchase of two common shares, and
Price—To be supplied by amendment
Business—The sale,
construction, and financing of "shell"
homes. Proceeds—For use
by Dixie Acceptance Corp., a
wholly-owned subsidiary of the issuer, who
proposes to
four such shares.

retire

outstanding indebtedness, purchase secured in¬
obligations, purchase 20,000 outstanding shares

stalment
of its

stock, and add to working capital. Office
4415
Boulevard, Jacksonville, Fla. Underwriter—Hayden, Stone & Co., New York City
(managing).
—

Beach

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¬
ment used by schools and
colleges in the instruction of
—

modern

ceeds

foreign languages (language
laboratories). Pro¬

—

Hudson

For general
corporate purposes. Address

—

510

St., Hacskensack, N. J.
Underwriter—Underhill
Securities Corp., 19 Rector
Street, 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.
Office—Mem¬
phis, Tenn. Underwriter
Union Securities Investment
—

Co., Memphis, Tenn.

A

*

Valdale Co., Inc.

July 27, 1960
commoh stock

ceeds

—

(12/15)

To pay accounts
payable, reduce




a

bank

loan,

Inc. (12/19-23)
(letter of notification) 80,890 shares of common
(par $1).
Price—$3 per share.
Proceeds—For

stock

•

are

Underwriters

City,

and

Business—The

—

Standard

&

was

Arkansas

Power

&

in

Ohio

Light Co.

was

Securities

Corp., New York
Inc., Pittsburgh, Pa., and
Co., Inc., New York City. Note — This

Registration Statement

common

occur

Chestnut

E.

Probable bidders: Halsey, Stuart & Co.
Inc.; Ea:tman
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.

engaged chiefly in the

Atlantic Transistor

Bruno-Lenchner,

Treat

to stockholders of additional
Regulation "A"; filing, possibly to

Office—39

ly $15,000,000 of first mortgage bonds, sometime in Mar.
Underwriter—To be determined by competitive bidding.

stock

design, production, and sale of greeting cards. Proceeds
—About $400,000 will be applied to the
reduction of
factoring advances, with the balance to be added to
working capital. Office—3280 Broadway, New York City.

Amos

Sebastian, Viceis considering a

announced that this subsidiary of
Middle South Utilities plans the issuance of approximate¬

•

company and its subsidiaries

a

Sept. 20, 1960 it

Broadway, New York City.

common

company

St., Columbus,
Underwriter—Vercoe & Co., Columbus, Ohio.

Office—151 Odell Avenue,
Underwriter—Equity Securities Co., 39

Williamsburg Greetings Corp.
Aug. 26, 1960 filed 180,000 shares of
(par 25 cents).
Price — $6 per share.

Inc.

offering
via

mid-1961.

general corporate purposes.

withdrawn

Dec. 2.

on

company operates 510 retail food
Diversified Locations, Inc., the

stores.

letter of notification

of shares of its
company

Proceeds—To

covering

par

makes

an

common

and

sells

undetermined number

stock.

Business

"water

a

-

—

tight,

The
un¬

shore

band. Office—63-65 Mt. Pleasant
Ave., Newark,
N. J. Underwriter—Mr. Roth,
Comptroller, states that he
is actively seeking an underwriter to handle the offer¬

—5050

Edgewood Court, Jacksonville, Fla. Underwriter
—Merrill Lynch,
Pierce, Fenner & Smith Inc. (manag¬
ing).
V'
\

;

$1

breakable" marine radio known as the "Marlin 200." Pro¬
ceeds—For the development of the "Marlin
300," which
is to be a similarly constructed radio with a ship-to-

selling stockholder. Office

.

Corp.

Sept. 12, 1960 the company reported that it is contem¬
plating filing its first public offering, consisting of a

Winn-Dixie Stores, Inc. (12/12)
Nov. 22, 1960 filed 406,000 shares of
outstanding com¬
mon
stock, of which 350,000 shares are for public offer¬
ing, and 56,000 shares are to be offered to key employees.
Price—To be supplied by amendment.
Business—The

ing. Note—The issuing company is
sidiary of Auto-Temp Inc.

.

a

wholly-owned sub¬

•

Wisconsin Southern Gas
Co., Inc.
Oct. 26, 1960 filed
27,996 shares of common stock being
offered to the holders of the
outstanding common on the

Automation Development, Inc.
Sept. 20, 1960 it was reported that a "Reg. A" filing^
comprising this firm's first public offering is expected.

basis of one new share for each five
shares held of record
Nov. 22 with rights to
expire Dec. 14. Price — $21 per
share. Proceeds—To reduce bank
indebtedness. Office—
Lake Geneva, Wis.
Underwriters—The Milwaukee Co.,

Note
umn

WonderBowl, Inc.

Sept.

property, for constructing a motel on said property and
various leasehold
improvements on the property. Office

L.

is

common

expected

will be used to
purchase and install

stock. Price— $1

that
a

some

$100,000

cap¬

this

col¬

Industry

I.,

Labs

N.

Y.

Inc.

was

Business

'

reported

that

a

"Reg A" filing is

Electronics.
Office — Westbury,
Underwriter
Sandkuhl and Company,
—

—

securities, possibly bonds
during the first half of
1961. Office—Lexington
Building, Baltimore, Md.
Un¬
derwriter
To be determined by competitive bidding:
Probable bidders:
Halsey, Stuart & Co. Inc:; White, Weld
& Co. and First Boston
Corp. (jointly); Harriman Rip¬
ley & Co., Inc. and Alex.'-Brown & Sons (jointly).
or

mill for the proc¬

essing of ore; $60,000 for rails, ties, rail cars and related
equipment: $10,000 for rebuilding
roads; $30,000. for
transportation equipment; and $655,000 for working

formerly carried in
"Automation for

Baltimore Gas & Electric Co.
Oct. 3, 1960 it was reported that the
utility expects to sell
about $20,000,000 of additional

Mining Co-

Proceeds—It

was

heading

Newark, N. J., and New York City.

Sunset Boulevard, Los
Angeles, Calif.
Under¬
writer—Standard Securities Corp., same address.

share.

firm
the

14, 1960 it

expected.

—7805

May 6 filed 1,000,000 shares of

This

under

Automation

April 14 filed 3,401,351 shares of common stock
(par $2).
Price—$2 per share. Proceeds—For purchase of certain

Yuscaran

—

Inc." Proceeds—For further
development of the "Skyjector." Office—342 Madison Ave., New York City. Un¬
derwriter—Ross, Riemer, Collins & Co., Inc., 44 Beaver
St., New York City.

Milwaukee, Wis., and Harley, Haydon & Co., Incf., and
Bell &
Farrell, Inc., both of Madison, Wis.

per

(letter of notification) 100,000
shares of
(par 10 cents). Price—$3 per share. Pro¬

rights

Wilier Color Television
System,

Jan. 29

Yonkers, N. Y.

Finance

President-Treasurer, that the

N. Y.

itock

Office

purposes.

Investment Co.

Nov. 11, 1960 it was reported by Paul O.

—Vincent, James & Co., Inc., 37 Wall St., New York,
•

corporate

1961 in the form of about $6,000,000 of
capital notes and
$4,000,000 to $6,000,000 of ..Hoordinated notes. Office—
St. Louis, Mo.
/ V

producing

test

Bermuda.

City (managing).

general

Nov. 3, 1960, Donald L. Barnes, Jr., executive
vice-presi¬
dent, announced that debt financing is expected in early

,

of notification)
150,000 shares -of
(par 40 cents). Price—$2 per share. Busi¬

developing,

equipment, and

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
form of first mortgage bonds, is expected
early in 1961.
Office—502-2nd St., S. W., Calgary, Alberta, Canada.

-

;

in mid-December. Price—$3 per
Business—Manufacturer of furniture. Proceeds—

Washington, D. C.

$12.50

Fund, which

• Westmore, Inc.
Dec. 1, 1960 (letter

cov¬

com¬

is expected

—Chantilly, Va. Underwriter—Allen, McFarland & Co.,

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.

common

stock

mon

Oct.

of electronic

(12/12)

Prospective Offerings
★ Advance Industries Corp.
Dec. 5, 1960 it was reported that a "Reg. A" filing
ering 100,000 shares of the company's 10 cent par

—1201 Continental Bank
Bldg., Salt Lake
City, Utah.
Business—Factoring.
Underwriter—Elmer
K.
Aagaard, Newhouse Bldg., Salt Lake City, Utah.

ness—Inventing,

United

stock. Prioe

be used to liquidate current and long-term liabil¬

worth of such securities for

Inc.
$500,000 of

common

share. Proceeds—To be used principally for
the purchase of additional accounts receivable
and also
per

securities

Industries Co.,

Inc.

1960, filed 700,000 shares of

-

Zurn Industries, Inc.
Sept. 26, 1960 filed 2UO,UOO shares of common stock ($I>
par), of which 100,000 shares are to be offered for the'
account
of
the
issuing company and 100,000 shares,;
representing outstanding stock, are to be offered for the
account of the present holders thereof. Price—To be sup-'plied by amendment. Business — The manufacture of
mechanical power transmission equipment, fluid control
devices, building plumbing drainage-products and re¬

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.

to capital

Thursday-, December 8, I960 '

.

counsel and the results have not as yet

and

•

.

racy and adequacy
scheduled for Aug.

1960

semblies

Oct.

Nov. 29, 1960 (letter of notification) $44,000 of 6%
ordinated debentures, due serially July 1, 1963 to

Co.

(letter of notification) 150,000 shares of
(par 10 cents). Price—$2 per share. Busi¬
ness—Manufacturers of components, subassemblies, as¬

Vim

★ United

&

stock

Aug. 29,

^ United Automotive Industries,

Rubin

Varifab, Inc.
common

Oct.

N.

& Co. both of New York City.

.

preferred
—

.

stock,

sometime

Volume

192

:

Number-6010

,

;

The Commercial and Financial Chronicle

Bo-Craft

Enterprises Inc.
18;; 1960 it was reported that a letter of notifica¬
tion consisting of 100,000 shares of 10 cent
par common
stock will be filed for this company. Price—$3 per share.
Business—The company is engaged in the manufacture
of parts for zippers. Proceeds—For expansion and gen¬
eral corporate purposes. Office—11-54 44th Drive, Long
Island City, N.' Y. Underwriter—Harwyn
Securities, 1457
Broadway, New York City.
Nov.

,

Brooklyn Union Gas Co.
Sept. 21, 1960 G. C. Griswold, Vice-President and Treas¬
urer, announced that there will be no further financing
in 1960 but that $25,000,000 to $30,000,000 of mortgage
bonds or preferred' stock are expected in late 1961 or
early 1962. Office-^176 Remsen St., Brooklyn 1, N. Y.v
Business Capital

Corp.
' "
18, 1960 George H. Dovenmuehle, Board Chairman
of Dovenmuehle Inc., Chicago, 111., reported that this
firm is contemplating "a large public offering." Business
Nov.

■—This

is

small

business investment

formed
in 1960, and it plans to develop real estate. In addition
to Mr. Dovenmuehle, directors will be drawn from Com¬
monwealth Edison Co.; Chicago Title & Trust Co.; Con¬
tinental Assurance (Chicago); Booz Allen & Hamilton
and Armour Research Institute.- Office—Chicago, 111.
a

California Asbestos Corp.

;'

company

\

Sept. 28, 1960 it was reported that discussion is under
concerning an offering of about $300,000 of common
stock. It has not yet been determined whether this will
be a full filing or a "Reg. A." Business—The company,

way

which

is

not

yet in operation but which has pilot
plants, will mine and mill asbestos. Proceeds—To set up
actual operations. Address—The company is near Fresno,

.

_

California

to

Oregon Power Co.

25, the company plans

1961, with no indication

additional

to type and amount. Office—

as

Commerce

1506

be determined

Street, Dallas, Texas. Underwriter—To
by competitive bidding. Probable bidders:

To be named.

Diversified

Automated

Sales

Corp.

Nov.

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

the

of

bank

form

of

approximately $7,000,000 of bonds and
$5,000,000 common stock.) Proceeds—For the repayment
Carbonic

Oct.

Office—216 W. Main

loans.

St., Medford, Oreg.

Equipment Corp.

5, 1960 it

sell

many as, 18 products of various sizes and
and will also accept exposed film for processing.
as

prices,
Office
—223 8th Ave., South,
Nashville, Tenn. Underwriter—
Negotiations are in progress with several major under¬
writers.

>

...

Dodge Wire Manufacturing Corp.

$300,000 of units, consisting of

a

Sept; 12, 1960 it was reported that registration i. is
expected of $600,000 of common stock. Proceeds — For

stock, bonds and

warrants will be made in late December. Proceeds—For

expansion of the business. Office—97-02 Jamaica Ave.,

Woodhaven, N. Y. Underwriter—R. F. Dowd & Co., Inc.
Industries

Casavan

Sept. 21,

1960 it was reported by Mr. Casavena, Presi¬
dent, that registration is expected of; approximately
$11,750,000 of common stock and $10,000,000 of deben¬
tures. Business
The company makes polystyrene and
polyurethane for insulation and processes marble for
construction. Proceeds—For expansion to meet $10,000,000 backlog. Office—250 Vreeland Ave., Paterson. N. J.
Underwriter—To be named. Registration—Expected in
—

corporate purposes.
Office — Covington, Ga.
Underwriter—Plymouth Securities Corp., 92 Liberty St..
New York 6, N. Y.

Dynacolor Corp.
Aug. 22, 1960 it was reported that new financing will
take place but there is no indication as yet as to type,
timing and amount. Office—1999 Mt. Read Blvd., Roch¬

ester, N. Y. Underwriter—The company's initial financ¬
ing was handled by Lee Higginson Corp., New York City.
Dynamic Center Engineering Co., Inc.
Oct.

3,

1960 it

was

that the company plans a
common stock. Proceeds—To pro¬

full filing of its $1 par
mote the sale of new products,
and for

working capital. Office

purchase new equipment,
— Norcross,
Ga. Under¬

Instrument

Corp.
a

full filing of approxi¬
stock and warrants is

mately $300,000 of bonds, common
expected. Proceeds—For expansion and the manufacture
of a new product.
Office—Westbury, L, I. Underwriter—

(EST) in Room 1900, 195 Broadway, New York City.

certificates. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Salomon Bros. & Hutz-

First Real

Investment

Estate

Fund

Nov.

10, 1960 it was reported that a stock offering of
$10,000,000 will be made to New York State residents in

early-to-mid-December,

and

in

January,

1961 a filing
inter-state

will

Business—This

become

open-end

stock,

and

will

estate

and

is

a

fund

mutual

new

which

to the sale of this
in commercial real
government bills. Office—7 E.

subsequent

short-term

invest

primarily

42nd

St., New York City. Sponsor
Corp.,. New York City.

—

Fass Management

Southern

&

Co.

Small

Business

Investment

•"

•

Oct. 24, 1960 it was
to file $3,000,000
of
zens

Southern

&

reported that the company expects
its common stock. Office—c/o Citi¬
National Bank, Marietta at Broad,

Atlanta, Ga.

24, 1960 it
that an undetermined
amount of bonds may be offered in the Spring of 1961.
Office—25 S. E. 2nd

Underwriter—

Ave., Miami, Fla.

To be determined by competitive
ders:
Merrill Lynch,

bidding.

Probable bid¬

Pierce, Fenner & Smith Inc. and
Kidder, Peabody & Co. (jointly); Halsey, Stuart & Co.
Inc.; White, Weld & Co.; First Boston Corp.; Blyth &
Co., Inc.
Oct. 17, 1960 it was reported that this company is

devel¬
oping plans for borrowing operations, which may in¬
clude
the
issuance of
debt, securities, and possibly
occur in the first quarter of 1961.
Office—Detroit,1 Mich.
General

Sept. 22, 1960 it was announced that under the terms of
the proposed
acquisition of Minute Maid Corp. this
company would issue about 906,400 shares of its common

a

stock, each share of which will be exchanged for 2.2
Minute Maid shares. Office—Atlanta, Ga. Note—Minute

writer—R. F. Dowd & Co. Inc.
International

Dec.

21,

on

the proposed merger on

Interstate Gas Co.

Oct.

17, 1960 it was reported by Mr. A. N. Porter of the
company's treasury department that the company is
awaiting a hearing before the full FPC with reference
to approval of its application for expansion of its sys¬
tem, which will require about $70,000,000 of debt fi¬
nancing. Such approval is expected in December of this

and the public financing is expected in the latter
part of 1961. Proceeds—For expansion. Office—P. O. Box

year,

1087, Colorado Springs, Colo.

was

reported that the company will file

letter of notification, comprising its first public offer¬

ing, in late December
Southern

or

early January. Office

class A common stock (par $2). Price — $5
per share.
Proceeds—To retire outstanding loans, purchase of plant¬
ing seed, lease or purchase land, building and machinery
and

St., Columbus 15, Ohio. Underwriter—Dillon, Read & Co
Corp.

Georgia Bonded Fibers, Inc.
Sept. 14, 1960 it was reported that registration of 150,000
of common stock is expected. Offices—Newark,
N. J., and Buena Vista, Va. Underwriter—Sandkuhl and

as

yet undetermined-amount ■ of its $L

par

Business—The company will enter the
on a multiple line basis.
Office —
Yankton South Dakota. Underwriter—
Mr. Johnson states that the company is actively seeking
common

field

O.

of

stock.

reinsurance

Box

669,

underwriter.




capital. Office
—

—
350 Equitable Bldg.,
Copley & Co., Colorado

Springs Colo.
Iowa-Illinois Gas & Electric Co.
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.
Oct.

Japan Telephone & Telegraph Corp.
27, 1960 it was announced that this governmentowned business plans a
$20,000,000 bond issue in the
United States. Proceeds—For
expansion. Underwriters
—Dillon, Read & Co., First Boston Corp., and Kidder,
Peabody & Co. Offering—Expected in the Spring of 1961.
Steel

Co., Ltd.

Oct. 17, 1960 it was reported that the Japanese
company
is considering a $4,000,000 bond issue for U. S.
offering.
Underwriter—First Boston Corp., New York
City.
Laclede Gas Co.

15, 1960 Mr. L. A. Horton, Treasurer, reported that
utility will need to raise $33,000,000 externally for

its

1961-65 construction
program, but the current feel¬
ing is that it will not be necessary to turn to long-term
securities until May 1962. Office — 1017 Olive
St., St.
Louis, Mo.

ic Lake Superior District Power Co. (2/8)
Dec. 2, 1960, G. A.
Donald, Chairman and President
stated

that

the

company plans

the issuance and sale of

$30,000,000 30-year bonds. Proceeds

—
To repay bank
loans and for expansion. Office—101 W. Second St., Ash¬

land,

Wisconsin.

Registration—Expected

Offering—Tentatively exepected

on

about

Jan.

9.

Feb. 8.

if L'Aiglon Apparel, Inc.
Dec. 2, 1960, it was reported that

company plans to file
registration statement with the SEC in January cover¬
ing about 60,000 shares of common stock. Office—15th

a

and

Mt.

Vernon

Sts., Philadelphia, Pa. Underwriters—
Sons, Baltimore, and Kidder, Peabody &
Co., New York (jointly).

Alex. Brown &

Assistant

Vice-President, that

the

utility

Jr.,

contemplates

the

issuance of $25,000,000 to $30,000,000 of first mort¬
gage bonds in the second or third quarter of 1961. Office
—250 Old Country Road,
Mineola, N. Y.
•

Louisville & Nashville R.R.

(12/13)

Nov. 30, 1960 it was reported that bids will be accepted

by the road

on

Dec. 13, for $7,755,000 of equipment trust

Inc. and Salomon Bros. & Hutzler. Bids—To be received
at

noon

(EST).

Macrosc Lumber & Trim
Nov.

7, 1960, it
offering

2060 Jericho

Co., Inc.

reported that a substantial common
contemplated in early 1961. Office—

was

is

Turnpike, New Hyde Park, L. I., N. Y.

.

Martin Paints & Wallpapers

Aug. 29, 1960 it

was

announced that registration is 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 stock. Proceeds
—For

tional stores. Office—153-22 Jamaica Ave., Jamaica, L. I.,
N. Y. Underwriter — Hill, Thompson & Co., Inc., New

Goshen Farms

York Citv

5, 1960 it was reported that 100,000 shares of the
company's common stock will be filed. Proceeds—For
breeding trotting horses. Office—Goshen, N. Y. Under¬

Hemingway Brothers Interstate Trucking Co.
16, 1960 the ICC granted the firm permission to
issue $1,000,000 of 10-year registered 6% subordinated
Sept.

a

common

carrier by

operating in nine Eastern states. Proceeds
—For debt reduction and additional equipment. Office—

Bedford, Mass. Underwriter—None.

Houston

Lighting & Power Co.
17, 1960 Mr. T. H. Wharton, President, stated that
raised
publicly sometime in 1961, probably in the form of pre¬
Oct.

ferred and debt securities, with the precise timing de¬
pending on market conditions. Proceeds—For construc¬

tion

and

repayment

of

bank

Building, Houston, Texas.

loans.

Office

Underwriter

—

—

Electric

Previous fi¬

nancing was headed by Lehman Brothers, Eastman Dil¬
lon, Union Securities & Co. and Salomon Bros. &
Hutzler.

a

new

warehouse and addi¬

N. Y.

Midland

April 8 it

Enterprises
stated

Inc.

in

the company's annual report,
contemplates the issuance on or before March 31,
a bond issue in an aggregate amount not to exceed
$4,000,000. Proceeds — To finance river transportation
equipment presently on order and expected to be
ordered. Office—Cincinnati, Ohio.
was

that it

1961 of

writer—R. F. Dowd & Co. Inc.

New

expansion, including

Inc.

Oct.

between $25-$35 million dollars is expected to be

Nov. 28, 1960 it was reported by Walter H. Johnson,
President, that the company plans its first public offer¬
an

430

motor vehicle

Sept. 22, 1960 it was reported the company will sell about
$10,000,000 additional common stock sometime in 1961.
expansion purposes. Office—215 N. Front

ing'of

for working

shares

Proceeds—For

Reinsurance

—

Blvd., Bronx, N. Y.

debentures. Business—The firm is

Columbus & Southern Ohio Electric Co.

Dakota

Corp.

Company, Newark, N. J., and New York City.

_

Colorado

Safflower

Oct. 28, 1960 it was reported that the
company plans to
file a letter of notification consisting of
60,000 shares of

stock

Resistance, Inc.

"...

an

business, and for the manufacture of a new product by a
subsidiary. Office—1947 Broadway, Bronx, N. Y. Under¬

certificates. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co.

Ford Motor Credit Co.

Sept. 19, 1960 it

Maid shareholders will vote

Gauge & Instrument Co.

Nov. 11, 1960 it was reported by Fred C. Eggerstedt

Light Co.
was
reported

Oct.

:

Coca-Cola Co.

P.

Industrial

Long Island Lighting Co.

Florida Power &

ler and Halsey, Stuart & Co. Inc.

Citizens

Aug.

Monument

Oct. 5, 1960 it was reported that
100,000 shares of com¬
mon stock will be filed. Proceeds —
Expansion of the

the

Exploit Films Inc.
Oct. 28, 1960 it was reported that the company will file
a
letter 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, New York City. Registration—Ex¬
pected in December.

offering.

if Chicago, Burlington & Quincy RR. (1/4)
Dec. 1, 1960 it was reported that bids will be received
by the road on Jan. 4, for $8,550,000 of equipment trust

25

Nov.

^ Chesapeake & Potomac Telephone Co. (2/15)
Dec. 1, 1960 it was reported that this A. T. & T. sub¬

Feb. 9 at 2:30 p.m.

—

Circle, Indianapolis, Ind.

Kawasaki

Dynamic

Oct. 5, 1960 it was reported that

will be made with the SEC which will permit

Information Meeting—Scheduled for

Office

Oct.

reported

late December.

sidiary plans to sell $20,000,000 of bonds. Office—Wash¬
ington, D. C. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: First Boston Corp.
and Merrill Lynch, Pierce, Fenner & Smith (jointly);
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; White,
Weld & Co. Bids—Expected to be received on Feb. 15.

1963.

,

general

full filing of about

common

in

Denver, Colo. Underwriter

R. F. Dowd & Co. Inc.

reported that

was

securities

on

the sale of about $14,000,000 of

—

writer—To be named.

was reported that the company expects
to market in late 1961 to raise about $12,000,000

41

Indianapolis Power & Light Co.
According to a prospectus filed with the SEC

was siated by the company's president
that there may possibly be some new financing during

18, 1960 it

come

in

•

Power & Light Co.

Sept. 14, 1960 it

as

Calif. Underwriter—R. E. Bernhard & Co., Beverly Hills,
Calif.
...;
-V .
'
• '
Oct.

Dallas

(2317)

Mississippi Business & Industrial Development
Corp.
Nov. 28, 1960 it was reported that the company will issue
$1,000,000 of $10 par common stock, of which $500,000
will be subscribed for by utility companies and $500,000
will

be

public.

sold

to

business

and

industry and the general

assist via loans, investments, and
other business transactions, in the location and expan¬
sion

Business—To

of businesses

in

Mississippi.

if Montana-Dakota Utilities Co.
Dec. 1, 1960, F. R. Gamble, Treasurer, stated that com¬
pany plans to
sell $5,000,000 of preferred stock ($100
par), sometime in mid-January. Stockholders are to vote
Continued

on

page

42

42

The Commercial and Financial Chronicle

(2318)

>

.

Thursday, December 8, 1960

.

\

Dec. 13

increasing the authorized preferred. Proceeds

on

—$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¬

preferred issue was underwritten on negotiated
basis by Blyth & Co., and Merrill Lynch, Pierce, Fenner
& Smith Inc., New York.
ous

Nedick's Stores,

Inc.

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 AlNov.

15,

1960

styne, Noel & Co., New York
New

City.

Orleans Public Service,

Public Service Electric

$15,000,000
Office

St., New Orleans, La. Underwriter—To
be determined by competitive bidding. Probable bidders:
Baronne

Higginson Corp., Equi¬
Dillon, Union Securi¬
(jointly); Kidder, Peabody & Co. and Stone
Securities Corp. (jointly); White, Weld & Co.;

ties & Co.
& Webster

Salomon Brothers & Hutzler.

-if New York Central RR. (1/18)
Dec. 5, 1960 it was reported that the road plans the sale
of $4,125,000 of equipment trust certificates. Underwriters
—Salmon Bros. & Hutzler and Halsey, Stuart & Co. Inc.
Bids—To be received on Jan. 18.

Northern Fibre Glass Co.

—

derwriter—Irving J. Rice & Co., St. Paul, Minn.
Northern Illinois Gas Co.

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
in 1961. Office—50 Fox St., Aurora, 111. Underwriters—
The First Boston Corp. and Glore, Forgan & Co., New
York, N. Y. (managing).
Maiden

Lane

Fund, Inc.
Aug. 29, 1960 it was reported that, registration is ex¬
pected sometime in December of 300,000 shares of com.
stock. Business—This is a new mutual fund. Proceeds—
•

One

investment, mainly in listed convertible debentures
and U. S. Treasury Bonds. Office—1 Maiden Lane, New
York 38, N. Y.
Underwriter—G. F. Nicholls Inc., 1
Maiden Lane, New York 38, N. Y.
For

Orange & Rockland Utilities, Inc.
Oct.

18, 1960 it was reported that the sale 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.;
Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;
W. C. Langley & Co. and Glore, Forgan & Co. (jointly).
lion of 30-year first mortgage bonds is

Otter Tail Power Co.

(1/24)

Albert V. Hartl, executive Vice-President
this utility told this newspaper that an issue of be¬

Oct. 21, 1960,
of

was

is

10, 1960 it

in

order

to

get

fleet of jet airliners.
The
be approved Dec. 7 by the

Inc.

-.

000,000 of bonds and $5,000,000 of preferred stock are
expected to be offered in the second quarter of 1961.
Office—120 Broadway, New York City. Underwriters—

Pierce, Fenner & Smith Inc., and Ki,d-

Merrill Lynch,

(3/15)

.

Aug. 1, 1960 it was reported that $15,000,000 of debt
financing is expected. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart

Inc.; Kidder, Peabody & Co., White, Weld & Co.
(jointly); Kuhn, Loeb & Co.; Salomon

and Shields & Co.

'

Hutzler, Eastman Dillon, Union Securities & Co.,
Equitable Securities Corp. (jointly); Blyth & Co.,
Inc.; The First Boston Corp. Bids—Tentatively expected

March 11 it

New

York

—

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.

written by

secondary offering might

a

Merrill Lynch, Pierce, Fenner

and Harriman

Co. Inc., both of

Ripley

City.

v

★ Security National, Bank of Long Island

Van

(1/17)

1, 1960 it was reported that the bank plans to issue
97,371 shares of common stock to be offered to stockholders

on

the basis of

one

new

r

share for each 10 shares

Carolina

Electric

&

Gas

amount of

a new

series of preferred stock

in March 1961.
bidding.

Underwriter—To be determined by competitive
Address—P. O. Box 390, Columbians. C.

Inc.

Office — Minneapolis, Minn.
Co., Philadelphia, Pa.

expansion.

Virginia Electric & Power Go.

Co.

refunding mortgage bonds and $5,000,000 principal

For

,

(6/13)

reported that the company will need
$30,000,000 to $35,000,000 from outside sources in 1961.
The financing will probably take the form of bonds and
timing will repend upon market conditions. OfficeRichmond 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. & Hutzler;
Goldman, Sachs & Co. Bids — Expected on or about
June 13.
;
'
Sept. 8, 1960 it

Nov.

and

—

Underwriter—Stroud &

annual
meeting on Jan. 17. Proceeds—To increase capital. Office
—Huntington, N. Y. Underwriter—Bache & Co. (man¬
aging).

14, 1960 C. M. Over, Treasurer, reported that this
utility is tentatively planning to issue $8,000,000 of first

Supplies,

registration is expected
in early December of a letter of notification covering
100,000 shares of this firm's $1 par common stock. Pro¬

ceeds

17, subject to approval of its stock¬

holders and Comptroller. Price—To be set at the

South

Aircraft

Dusen

Nov. 1, 1960 it was reported that

Dec.

held of record Jan.

J

man

reported that

was

& Smith Inc.

'■

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
facilities. Office — 315 N. 12th Blvd., St. Louis, Mo.
Underwriter—To be determined by competitive bidding.
The last sale of

a

Schlitz & Co.

be made. Underwriters

(managing).

-

Dec.

and

(Jos.)

der, Peabody & Co., both of New York City

ic Union Electric Co.;

Bros. &

March 15.

approximately $15,-

Sept. 28, 1960 it was reported that

;

--V

proposed deal is expected to
lenders.

Co.

Gas

Trunkline

was

'

his controlling stock in a voting trust
$31 million in financing to pay for a

have agreed to put

expected

was

.

$6,000,000 to $8,000,000 of 30-year first mortgage
expected. Office—Fergus Falls, Minn. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.;
Glore, Forgan & Co.; White, Weld & Co.
is

Pacific
Nov.

1960 it

Rochester Gas & Electric Corp.

tween

bonds

Electronics, Inc.

reported that a "Reg. A" filing of
the company's common stock is expected. Proceeds—For
expansion and working capital. Office—Ft. Lauderdale,
Fla. Underwriter—Blaha & Co., Inc., Long Island City,

on

Richards Road, Kansas City

Mo. Underwriters — Lazard Freres & Co., Lehman
Brothers and Dillon, Read & Co., Inc. (managing). Note
—Dec. 6 it was reported that Howard Hughes is said to
5,

Richards Aircraft Supply Co.,

& Co.

Vice-President-finance re¬
ported that of the $95,000,000 in outside financing that
9, 1960 C. J. Gauthier,

Nov.

jet transport fleet. Office—10

reported that a December letter of
comprising this firm's first
public offering. Office—Paramus, N. J. Underwriter—
Plymouth Securities Corp., New York City.

Oct.

subordinated income

warrants to TWA stock¬
holders. Proceeds—To give TWA direct ownership of a
debentures with stock purchase

Blyth & Co.

notification

of

000,000 from the proposed sale of

5,000,000, and that some of the added shares might be
issued in 1961. Office—860 Stuart Bldg., Seattle 1, Wash.
Underwriter
Previous financing has been handled by

Ram

Inc.

TWA by

to

Nov. 4,

Trans World Airlines,

$340,000,000 with $168,000,000 to be loaned (to
banks, insurance companies and other lenders,
$50,000,000 to be drawn from internal sources, and $100,-

,

was

N. Y.

Sept. 28, I960 it was reported that this company is plan¬
ning to issue 100,000 shares of $1 par common stock un¬
der a letter of notification. Office—St. Paul, Minn. Un¬

•

Oct. 10, 1960 it was announced that financing needs have
been scaled down to $318,000,000 from the original fig¬

reported that the number of author¬
shares had been increased from 3,266,819

common

expansion.

Last

ures

Puget Sound Power & Light Co.

of the year. Proceeds—For pipe¬

Office—Owensboro, Ky. Underwriter—
§ale of preferred stock on October 1959 was handled
by Dillon, Read & Co., New York.

line
1

ark, N. J. Underwriter—Merrill Lynch, Pierce, Fenner &
Smith Inc., New York City (managing).
Information
Meeting—Scheduled for Dec, 8 at 11:00 a.m.

Halsey, Stuart & Co. Inc.; Lee

table Securities Corp. and Eastman

filed in fourth quarter

filed 250,000 shares of cumulative preferred
stock with the New Jersey Public Utility Commission.
SEC filing is expected shortly. Price—To be supplied by
amendment. Proceeds—For construction. Office—New¬

10, 1960 it

2,

company

1

(12/13)

Co.

& Gas

1960, W. M. Elmer, President, stated that the
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
Dec.

Oct. 24, 1960

ized

Inc.

if Texas Gas Transmission £orp.

expansion. Office-—900 15th

St., Denver, Colo. Underwriter—To be determined by
competitive bidding.
Last equity financing handled
on a negotiated basis by First Boston Corp.

Nov.

Nov. 10, 1960 it was reported that an issue of
of first mortgage bonds is expected in May, 1961.
—317

Proceeds—For

in mid-1961.

Continued from page 41

Gas Transmission

Co.

2, 1960 it was reported by Mr.

K. C. Cristensen,
company Vice-President and Treasurer, that this subsid¬
iary of Pacific Gas & Electric Co. plans a rights offering
to stockholders later this year of $13,300,000 of convert¬
ible debentures and also plans the sale of $90,000,000 of
bonds, the timing of which is as yet un¬
decided. Office—245 Market Street, San Francisco, Calif.
Underwriter—Blyth & Co., Inc., New York City (man¬

first mortgage

28, 1960 it was reported by Mr. Loren Fitch, com¬
pany comptroller, that the utility is contemplating the
sale of $35,000,000 of 20-year first mortgage bonds some¬
time in 1961, with the precise timing depending on

Waldorf Auto

market

conditions.

Proceeds

—

To

retire

bank

loans.

Office—Watts

Building, Birmingham, Ala. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; First Boston Corp.;
Blyth & Co. and Kidder, Peabody & Co. (jointly).
Southern
Nov.

21,

Railway Co.

1960

stockholders

Nov.

23, 1960 Mr. Tortorella, company secretary stated
"Reg A" filing is expected. Office—2015 Coney
Island Avenue, Brooklyn, N. Y. Underwriter — To be
that

a

named.

approved

the

issuance

of

..

* Western

Union Telegraph Co.

Dec. 6, 1960 it was reported that this company filed a
plan with the FCC to transfer its Atlantic cable system
to

a

newly

national,

$33,000,000 of new bonds. The issuance of an unspeci¬
fied amount of additional bonds for other purchases was

Leasing Inc.

organized company, Western Union Inter¬
Inc. The plan provides for the issuance by

Western Union
year

International of $4,500,000

debentures to be taken

up

or

of senior 15placed by American

also

aging).
Pacific

Southern Natural Gas Co.
Oct.

Lighting Corp.

1960 it was reported by Robert W. Miller, chair¬
man, that the company will probably go to the market
for $30,000,000 to $50,000,000 of new financing in 1961,
but that if equity financing is used the amounts won't
be high enough to dilute earnings of the common to
below the $3.20 per share level. Office—600 California
Nov. 10,

St., San Francisco 8, Calif.
Panhandle Eastern Pipe Line Co.

Sept. 28, 1960 it was reported that $65,000,000 of deben¬
are expected to be offered in the second quarter

tures

of 1961. Office—120

Broadway, New York City. Under¬
Fenner & Smith Inc., and
Kidder, Peabody & Co., both of New York City (man¬
writers—Merrill Lynch, Pierce,

aging.)
Power Chem

Industries

Oct. 18,

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 is in the process of organizing and will manufac¬
ture additives for fuel oils. Proceeds—For expansion and
general corporate purposes. Office — 645 Forrest Ave.,
Staten Island, N. Y. Underwriter — Ronwin Securities
Inc., 645 Forrest Ave., Staten Island, N. Y. Registration
—Expected in January.

^ Public Service Co. of Colorado
Dec. 2, i960, 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




Securities Corp., New York.
In addition, about $4,000,000 of subordinated debentures and 400,000 shares of

poses,

class A stock would be offered to stockholders

bid

Telegraph Co.
American Securities Corp.,
would purchase from Western Union International about
133,000 additional shares of class A stock giving Ameri¬

approved. Proceeds — For general corporate pur¬
including the possible acquisition of Central of
Georgia Ry. Office—Washington, D. C. Underwriter—
Halsey, Stuart & Co. Inc., will head a group that will
the bonds.

on

ern

of West¬

Union

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
can

Southwestern

Aug. 9, 1960, it

Public Service Co.

was

reported that in February, 1961, the

company expects to offer about $15,000,000 in bonds and
about $3,000,000 in preferred stock, and that about one

Underwriter—American Securities Corp. (managing).

thereafter a one-for-twenty common stock rights
offering is planned, with the new shares priced about
6 V2% below the then existing market price of the com¬
mon.
Office—720 Mercantile Dallas Building, Dallas 1,

July 19, 1960, it was reported that this New Jersey com¬
pany plans to register an issue of common stock. Under¬

B stock for

$100,000. Office—60 Hudson St., New York.

year

Texas.

Underwriter—Dillon, Read & Co., Inc.

Storer

Broadcasting Co.

Sept, 28, 1960 it was reported that a secondary offering
being planned. Office—Miami Beach, Fla. Underwriter
—Reynolds & Co., New York City.
is

Whippany

Paper Board Co.

writer—Van Alstyne, Noel & Co., New York City. Regis¬
tration—Expected in December.
Winona

Wood

Aug. 24, 1960, it
A

common

Products

was

stock

is

Co.

repbrted that

contemplated.

a full filing of clasi
Business—The com¬
and industrial

pany makes wood cabinets for household

Telescript C.S.P., Inc.

use.

Nov.

Office—Winona, N. J. Underwriter—Metropolitan
Philadelphia, Pa.

14, 1960 it was reported that a letter of notifica¬
tion, representing this firm's first public offering, will
be filed shortly covering 60,000 shares of common stock.
Business—The firm makes a prompting machine for tele¬
vision and an electronic tape editor. Proceeds—To ex¬

Securities Inc.,

pand plant and sales force, enter closed circuit television,

30,000 additional shares of its

repay

155

a

$20,000 loan, and for working capital. Office—

West

Robert

A.

New York

72nd

Street, New York City.

Martin

City.

Underwriter-

Associates, Inc., 680 Fifth Avenue,

Winter

May 10 it

Park

Telephone Co.

announced that this company, during the
first quarter of 1961, will issue and sell approximately
was

will be offered

common

stock.

This stock

rights basis to existing stockholder!
or may not be underwritten by one or more
securities brokers. Future plans also include the sale
of $2,000,000 of bonds in the second
quarter of 1961.
Office—132 East New England
Ave., Winter Park, Fla.
and may

on

a

Volume

The Commercial and Financial Chronicle

Number 6010

192

Fund Inc. Offered

"We must bring fresh hope to

and

use

of

fruits

the

Federal Street

Fund, Inc.,

designed

company

suu^cuiuai

to

appeal to
making

its corpmon stock
in exchange for blocks of securi¬
ties

established

of

Public

asset

offering

mated

share, and

per

will not be consum¬
securities

unless

market

companies.
is the net

price

value, $1,000

tne exenange

.

value

of

at

haying

least

a

$z0;-

000,000 are deposited with Mor¬
Guaranty Trust Co. of New
York as repositary for the Fund
prior to Feb. 1, 1961. The mini¬
mum
single exchange is set at
$50,000. Tne Fund has an author¬
ized capital of 150,000 shares of
gan

modern

to

reject

Dealer

as

for

dealers

with offices at 1604-A
Avenue to eneaee in

business.

will

solicit deposits of securities to be
exchanged for shares of the Fund.
The main purpose of the Fund

is

provide

to

investors

holding

large biocks of acceptable securi¬
ties with a method of diversifying

nothing less than to lift whole seg¬
ments of the population into the twentieth century.
We must do this in order to bring increased oppor¬
tunity to the man in the street and the man on the
farm."—Douglas Dillon, Under Secretary of State
to the Bogota Americas Conference.

tneir

without realizing
for Federal Income

holdings

gain

loss

or

Tax

purpose at the time of the
exchange. The investment objec¬

tive

is to seek

the Fund

of

sible long-term growth
and of future income.
The initial period for

To the extent that these people are really "less
privileged" rather than merely indolent or shiftless,
the remedy would appear to lie not so much in
monetary gifts as in changes in domestic laws.
In any event more than foreign generosity will
he required to right the situation. Let no one fail
to recognize that fact.

pos¬

of capital

depositing

securities will expire Feb. 1, 1961
unless extended. Following termi¬
nation

the

of

deposit period, the
depositor
a
report listing all securities on
deposit as well as their tax costs
and market values, At any time

during the deposit period and for
period
three weeks fpllowJng the issuance of this report,
DIVIDEND

.Electronics
Stock Offered

share

through United Planning
Corp. of Newark, N. J. The com¬
pany of 71 Crawford St., Newark,
N, J., was, organized under the
Taws of the State of New

Jersey

in

October, 1958 as Imperial Elec¬
tronics, Inc. Its name was changed
in Juiy I960 : in order to avoid
conflict of its

affiliated
New

with

of

laws

un¬

an

organized

corporation

the

under

name

the

State

of

York.

exercise

and

offered

via

and

housewares

health, medical

field.

The

clinically testing, a product
designed to stimulate heart ac¬
actual

of

or

minent heart stoppage. The

im¬

device

has been successfully tested under

laboratory conditions. Due to the
circuitry designed and developed
by the company, the size of its
electronic

stimulator

heart

was

DIVIDEND

NOTICES
TOPEKA AND

The

of

Board

Cerro de Pasco

DIVIDEND
SANTA FE

New

York,

RAILWAY COMPANY

N.

dividends

company

the sales
a

Directors

Capital
the

ended

year

said

Preferred

books of

June

the

on

(27V^)

per

December

30,

Capital

of

of

consist
authorized

wihch 320,980 shares

to

holders

Stock registered

dividends

of

1961,

the

on

Board

also

on

this

day

a

of Thirty Cents (30c) per share, being
Dividend No. 200, on the Common Capital Stock
this

Comnany,

holders

tered

of

on

said

the

payable

Common

books

of

March

Series

the

at

close of business January 27, 196L,
In
addition,
the Board declared an extra
dividend, No. 199, for the year i960, of Twentyfive cents
(25c) per share, on the common

12,

1961,

November 30,1960

1969.

M.

SWEAR3NGBN,

Assistant Treasurer.
120 Broadway,

New York 5. N. Y.

^cr/io ration

Common

share, payable
I960 to stock¬
on

December

St. Iowa

Final Quarter Dividends
Record Date December 13, 1960

97

CONSECUTIVE DIVIDEND
on

Common Stock

payable

on

January I,

67!A cents

a share on
the,
$2.70 PREFERRED STOCK

1961 to stockholders of record
at the dose

ber

12,

of business Decem¬

I960,

was

Payable January 1,1961

declared

by the Board of Directors.

65

6% Stock Dividend

Vice-President and IrMswer '

6

shares for each

payable
to

on

100

shares,

December % 1960,

February 10, 1961

stockholders

of record

on

January 16, 1961.

IINNIMfi

500,000

TENNESSEE

Secretary

CORPORATION

300 Park Avenue

of

New York 22, N.

will be out¬

CONTINENTAL

Y.
November 17,1960

COMPANY

BAKING

December 16, I960, to stock'
holders of record at the close

The Board of Directors has declared this day

quarterly dividend

close of business December 9, 1960.

The Board of Directors has declared

this day

a

on

share

holders

stock
ness

at

of

of

record

such

the close of bush

December 9, 1960.

The stock transfer books will
not

corporate

purposes.

be closed.
WILLIAM FISHER

stock

authorized,

of

the
will

In addition, a

dividend

of Pittsburgh, Pa.

■SI

which

156th DIVIDEND DECLARATION
The

Board

of

Directors

2% stock

was

close of business December

of this

1,1960.

December 6, I960, de¬
clared a cash dividend of FiftyFive Cents (55#) a share on the
capital stock.
The dividend is payable Decem¬
ber 28, 1960, to shareholders of
record on December 13, I960.
company on

The above cash dividend
will not be

paid on the shares
the stock

issued pursuant to

dividend.

November 30,1960

Imi

61

John G. Greenburgh,
Broadway
Treasurer

New York

N. Y.

Treasurer

252,500 shares will be outstanding.
>-

'•

'

t

*

-




%

»•

*

.

S.

•a

J

c*.

i-

■-

'

»

iJ J;

X,

declared pay
able December 28, I960, to
stockholders of record at the

TBBASU&B&

com¬

December

STOCK DIVIDEND

regular quarterly

outstanding Common Stock, payable December 22, 1960, to

the

business

1960.

Fire Insurance Compafly

dividend, for the fourth quarter of the year 1960, of 55# per

loans to stockholders;

capitalization
upon
completion of the offering
consist of 500,000 shares Of

of

NATIONAL UNION

Common Dividend No. 63

$10,000 for advertising and promo¬
tion; and the balance of approxi¬
mately $92,250 for working capi¬

mon

a

$l.SV/z Per share on the outstanding $5.50 dividend Preferred
Stock, payable January 1, 1961, to stockholders of record at the

of

$20,000
to
retire
bank
loans;
$25,000
for
the acquisition of
plants and equipment; $15,000 for
research and development; $14,-

The

DIVIDEND

quarterly dividend of
thirtynve (35c) cents per
share was declared payable

Preferred Dividend No. 88

ing are estimated at $176,750 after
the expenses of the offering. It
is
expected that they will be
utilized as follows: approximately

general

CORPORATION

Michael D. David

has

proceeds of the offer¬

and

Broadway, New York 6, N. Y.

A

J

tal

share

quarterly dividend of 45# per

CASH

utilized, it can be carried in
Physician's bag.
,

500 to repay

cents a

the COMMON STOCK

Payable December 24, 1960
A

now

net

Diversified Closed-End
Investment Company.

A stock dividend at the rate of

com¬

stock,

9ri-^ontimntal

INTERNATIONAL

^

and is completely portable.
the cabinet-size machine

The

$1.28125
Traaturar

to stockholders of record at the close
R.

$1.0875

VINCENT T. MILES

Capital Stock of the Company, payable January
of business December 6.

$1.25

$1.0625

$1.0875

standing.

Unlike

a

Per Share

5%
4.25%
Series E, 4.35%
Series F, 4.35%
Series H, 5>8%

1,

Company

tbe close of

at

December 12,1960.

on

Series B,
Series D,

1961, to
Capital Stock regis¬

the

holders of Preferred

to

business

divi¬

dend

of

following quarterly
payable January 1,

Stock of record

at the close at business

declared

STOCK

ROBERT O. MONNK5

completion of this of¬

will

1960,

1960.

16, 1960.

funds for working capital.

shares

29,

holders of record

pro¬

$70,000 will be added to the gen¬

fering

30,

the Company

December
The

clared the

of this Company, payable Feb¬
1961, out of undivided net profits for

share

ties and the balance estimated at

pany upon

PREFERRED

Tbe Board of Directors has de¬

Stock

l,

ruary

demonstration

capitalization of the

1960.

this day declared

of

Corporation, at

Cash Dividend No. 162

laboratory; $20,000 for new facili¬

eral

has

dividend of Twenty-five Cento (25e) oer
share, being Dividend No. 124, on the Preferred

meeting held on December 6,
I960, declared the following

proceeds estimated at
$165,000 will be allocated as fol¬

$25,000 for

November at.

Y.,

The Board of Directors
a

n

net

for

QUARTERLY

199™

machinery.

$50,000

LONG ISLAND LIGHTING COMPANY

& Co.

man

Pasco

de

Twenty-seven and one-half cents

lows:

Telles

SHOE

Stock of the Corporation:

The

Mr.

formerly with Robert L. Fer-

NOTICES

development, pro¬
duction and marketing of controls
for use in automating industrial

been reduced to that of a cigarette
case,

Co.,

prospectus

the

of

JOHN R. HENRY, Secretary

Vice-President; and D. D. Singer,

CORPORATION

.

is

cases

5

Cerro

consists of the

The company has developed and

in

Dec.

business

The

tion

& Earl Edden

a

open.

Telles, President; Diane Marshall,
Secretary-Treasurer.

{. i

i

r

-

Stockholders

1960. Transfer books will remain

COMPANY

100,000 shares of General Automa¬
tion Corp. common stock at $2
per share.

gram;

It is engaged in the manufac¬
ture, sale and distribution of elec¬
tronics and electrical products in
the

Bros.

9,

securities

Herbert I.

are

A

Common Offered
Bertner

to

Checks will be mailed.

Officers

Gen T Automation

Electronics, Inc. offered
via a Nov, 30 prospectus, 112,500
shares of common stock at $2 per

1961

3,

of record at tbe close of business December

Fund will issue to each

-

Techni

dared on the Preferred Stock of this Company,

payable January

Washington
a

STOCK

On November 29, 1960 a quarterly dividend
of one and three-quarters per cent was de-

MIAMI BEACH, Fla.— Hamilton
Securities Inc. has been formed

group

a

who

AMERICAN
CAN COMPANY
PREFERRED

THE ATCHISON,

Manager

securities

securities, in

Form Hamilton Sees.

Goldman, Sachs & Co., will act
of

deposited

portfolio.

stock.

common

DIVIDEND NOTICES

order to achieve the desired bal¬
ance
and
diversification of its

is

investors,

43

then have up to ten days in which

offering of

an

"The task is

.

a newly
investment

diversified

formed

knowledge for themselves, their
families and their country. It is
not enough
only to construct
modern factories, power plants
Douglas Dillon'
and office buildings.
"These things are essential to the development
process. But it often takes many years for their
benefits to reach down to the ordinary citizen. We
must therefore broaden our efforts to help all of the
people.

•

depositors may withdraw their de¬
posits without cost. The Fund will

Federal Street

Money Gifts the Answer?
the less privileged
people who make up such a large proportion of the
population in many of the countries of Latin Amer¬
ica. We must open before them the path to a better
life of material well-being, equal¬
ity and dignity.
"We must help them to re¬
place a hovel with a home. We
must help them to acquire own¬
ership of the land and the means
for its productive use.
"We must help them to enjoy

(2319)

i

t.

<

>

f

44

The Commercial arid Financial

(2320)

Chronicle

,

.

.

Thursday, December 8, I960
/

\

The Security
I Like Best

WASHINGTON AND YOU
BEHIND-THE-SCENES INTERPRETA TIONS
FROM THE NATION'S CAPITAL

Continued

from

2

page

this

the

population
loss
within
their
boundaries. The exceptions were
Los Angeles, the third largest,
and Houston. Losing population
were New York, Chicago, Phila¬
delphia, Detroit, Baltimore,
Cleveland, Washington and St.

but

Louis.

WASHINGTON, D. C — The
White House is ready to send io

month the all
decennial census of

Congress

next

important
1960.
The

significance,

tremendous

has

census

only

not

to

communities and the states,

nation, and to business
industry. Many plans for

the

to

and

plant expansion and home
building and shopping centers
are
already being blue-printed
for the future as a result of the
census.

the census bear
for industry

Not only does
a

of

wealth

data

business, but it has impor¬

and

significance. There
difference
in
the

tant political

will

he

a

electoral vote of numerous states

in

election

Presidential

the

of

1964.

is

doubt about

no

the people of

it—

the United States

conscious. Among other

sun

"The

whole

the

including

cities,
lem

in

proposals to

Perhaps more people want to
live
in
California
than
any

Nevertheless,
Florida seems to be close be¬
hind.
Florida
which was the
state.

other

state 10 years ago,

20th largest

There
predictions in Washington

today the 10th largest.

1970, Florida will have

that by

Texas,

population as big as
the sixth largest state.
a

in
only a decade, Florida climbed
over Kentucky, Louisiana, Ala¬
In

10th place

to

leaping

Minnesota,
Tennessee,
Georgia,
Wisconsin, Virginia,
Missouri, North Carolina and

them,

but

beset

such

by

other

dramatized:

points out the

which

the

is

less

small

extreme,

and

de¬

Virginia,
the nation's 14th largest, 25 of
its 98 counties have a popula¬
counties.

clining

In

tion of less than

10,000, and 15
of those lost population during
The

the decade.

in

same

situation

where

states

most

small rural counties.

are

largest

remained the
second largest state in 1960, but
its population increased by more
than 5,100,000 to a total of 15,1950,

in

state

There

717,204.

appears

little doubt that in 1970

be

state, thus sup¬

largest

the

to

it will

planting New York
long held the title

which has
of Empire

State.
All

parts of the country have

of course. The Federal
Reserve Bank of Dallas, in a
grown,

of

commentary

marked

the

population growth in the South¬
west in its November Business

that the urban
the five South¬
western
States increased 43%
during the 1950's to reach 12.3
million, which is 72% of the
Southwest's total population.
noted

Review,

population

of

Phoenix
each gained more than 300,000
during the decade. Concentra¬
Houston, Dallas and

tions

of

new

such as

industry

chemicals, aircraft and metal
working,
were
contributing
factors
in this
great growth.
Houston is now the sixth larg¬
est

city in the nation.

anything

Dallas Reserve
Business Review, "this
of
population change,

said

Bank's

review

and

factor

Although both California and
outgained New York,

the

location

sises the importance

re-empha¬
of diversi¬

fying, broadening and strength¬
ening
the
basic economic
structure
of
the
Southwest.
job

Where

Empire State chalked up an
over-all decade gain of 1,952,112, followed by Texas

opportunities exist,

productive
population will
others
will be

(1,868,-

483), Ohio (1,759,770), Michigan
(1,451,428), Illinois (1,368,982),
New Jersey (1,231,453), Penn¬

Maryland
(757,688),
Indiana
(728,274),
Virginia (648,269), Louisiana
(573,506),
Arizona
(552,954),
and
Connecticut
(527,954)
to
of

rate

the

in

states

15

their

in¬

population

crease.

The final total showed
ord increase of

United
the

rec¬

a

28.000,000 in the
This

States.

exceeded

previous all-time record of

8,000,000 in the previous decade.
The

for

total

the

District

and

the

was

179,323,798

However,

of

Columbia

of

as

the

states

50

April

Census

exceeded

vember

The

1.

West

led

180,000,000.

the

regions in

both amount and rate of growth.
The

population of the West in¬

creased
the

by

only

7,900,000.

region

rate of growth

as

a

in

It

was

which

the

greater than

was

increase for the

18.5%

tion

na¬

the

amount

remain,

and

attracted."

and the

cline

in the North

Mid-West showed a de¬

in

population.

Actually

eight of the ten largest cities
in the United
States have a




the

July 3, 1960. Capitalization

lose

two

California

Besides

and Flor¬

states that will gain seats
Ohio, Michigan,

ida,

Arizona and

Maryland, Texas,

four

The

Hawaii.

seats

ratio of 2.8 to 1.

at the current fiscal
year to end July 31, 1961, it has

IN INVESTMENT FIELD

the makings of

will offset the loss
in Arkansas, and
in Alabama, Missis¬

will pick up
of two seats
each

panded its

sociation annual

1944, and which may never be

the

solid again as a

Dec.

[This

column

political unity.

is

intended to

re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's"

own

Dec.

(Kansas City, Mo.)

8, 1960

Kansas

winter

dinner

Association

Investment

of

12-13-14,
Texas

1961

Group

record

a

(Houston,

Admits Partners
On January 1,

(Canada)

:f

Park

Shearson, Hammill

&

Oet.

Lodge.

16-20, 1961 (Palm Springs,

constitute^

National

partnership

Wendell B. Barnes,
Olmstead, manager of
the La Jolla office; Blair A. Phil¬

Palm Springs Riviera Hotel.

Harper C.

Nov.

Jr., and Charles Werner of
Chicago office; Richard J.

lips,
the

Teweles,

the

firm's

Los

Angeles

Calif.)

Security

Traders

Asso¬

ciation Annual Convention

at th^

26-Dec.

1, 1961

the

=

Association

with

13.2%

of activities

the

provide

in

power

growth

an

scope

excellent

future

The stock is traded

years.

in the Over-

the-Counter. Market.

Biddle Co.

jS™™"'"""'" '""i™1

m

_

#

do Admit Partners

manager.

PHILADELPHIA, Pa.—On Jan. 1
With Yarnall, Biddle & Co.
Yarnall, Biddle & Co., 1528 Wal

With Eastman Dillon
PHILADELPHIA,

Pa.

—

Eastman

Securities & Co.,
Philadelphia
National
Bank
Building,
announces
that
Mrs.
Dillon,

John
ciated
office

Union

W.

Whittaker

with
as

a

their

is

now

asso¬

Philadelphia

registered representa¬

PHILADELPHIA, Pa. — Yarnall,
Biddle & Co., 1528 Walnut Street,
members of the,. New York Stock
Exchange

and

other

leading ex¬
changes, announce that Rawson
G.
Lizars, Jr.
and
Charles
H.
Seiler
them

are
as

now

associated

registered

nut

Street, members of the Ne\

York

and

Stock

Exchanges, will admit War

ren

H.

Philadelphia-Baltimor
Bodman

and

Charlto:

Yarnall II to partnership.

with

representa¬

tives.

Attention Brokers and Dealers:

TRADING

MARKETS

American Cement

Botany Industries
W. L. Maxson

Official Films
Waste King

smallest

Carl Marks

new

census

means

a

Nine states will

fornia and four for

will

lose

Inc.

Our New

FOREIGN

SECURITIES

20 BROAD STREET

telephone number is

TEL: HANOVER 2-0050

SPECIALISTS

NEW YORK 5. N. Y.

LERNER & GO.

Penn¬

three,

and

Massachusetts

and

Investment

Securities

10 Post Office Square, Boston 9, Mass.
Telephone
HUbbard

York,

York

CAnal 6-3840

Florida, and

16 states will lose seats.

sylvania

& C.o.

re¬

gain
se&ts, including eight for Cali¬

New

steady

enlarged

gain.

Political Impact
The

past

basis for material enhancement of

The Northeast

had

-

coupled with the

(Hollywood,

Bankers

(8),

Airwork

L

Fla.)
Investment

of

a
highly attractive
speculative: value with the prom-

earning

Co., 80 Pine St., New York
City, members of the New York
Stock
Exchange
will
admit
to

shares

common.

A ise that

Investment Dealers Association of

Canada annual meeting at Jasper

;

ac¬

profits

$15-.million,, with

share. At prevailing levels

the

Investment

ing at the Shamrock Hilton Hotel
June 22-25, 1961

and

sales}'Atf

with

and

snowballing, to the vicinity of $.75

Bankers Association annual meet¬

Shearson, Hammill

field,

Airwork's volume should reach a

Phila¬

delphia annual meeting and elec¬
tion.at Mask & Wig Club.
April

overhaul

business planes continuing to soar.

(Philadelphia, Pa.)

1960

banner

a

of activities into

scope

engine

cessory

at

Phillips Hotel.
8,

jet

City Security Traders As¬

Tex.)

views.]

the

becoming

for the company. Having; ex¬

year

sippi and North Carolina in the
South, which has not been solid
in Presidential elections since

v

.

Looking

that

and the one that Texas

Florida

dated
July
31,
1960
showed
$6,112,426 of current assets, against
$2,208,812 of current liabilities, a

EVENTS

New Jersey,

are

The latest available balance sheet

COMING

16.5%, which was slightly
higher than that of the North

rate of

a gain
During the same
earnings improvement

even, more

was

apportionment of House seats in

The older cities

each

will

seats.

of

Central region.

$12.4 million,

88%.

some

spectacular, in¬
creasing 143% from $0.23 a share
to $0.56 a share in the fiscal
year

ad!'*

growth with
7,800,000. Dixie's rate of growth

25 states.

Some Cities on Decline

record

a

was

South, the nation's most
populous region, ranked second
in

to end

consists of $1,220,727 of long term
debt and 763,898 common shares.

tive.

whole.

fiscal

current

in

span,

look like a

We

The

the young and more

segment of the

desk location?

Bureau

the total population in No¬

says

my

(821,354),

the first

name

its

of

In the five-year period through

ended

the

the

"Perhaps more than

else,"

Over-all Record Increase

sylvania

change

'Before and After*

one

applies
there

I

are

Florida

California, the second

"Could

with

bama,

Indiana.

to

Arkansas

Then the bank

phase
year

the

of

complex

and

this

I960', Airwork's sales have
- asharp upward trend,
rising from $6.6 million in 1955-56,

surround

problems."

that

significantly

t

ex¬

mergers

man

10% of sales in fiscal
Airwork's management is

been

Two

merge

which

counties

the

step-up

of Airwork OEM sales.
overhaul volume

fiscal

intensive

under

have

—

also

Miami-plant
the already,

July 31, 1961.

other cities—Durham and Rich¬

study
Lure of the Sun

limits.

city

of

DC-8.

are

in

and

part by substantial

mond

sunny

at the

business will expand

growing

Charlotte

to

confident

solved the prob¬

Raleigh, have

Douglas

and

connectors

pace

1960,

areas," said the Fed¬
Reserve
Bank.
Several

eral

Grumman
Jet - Star,

totaled only

problems

rapidly

can

While accessory

in
extending and coordinating the
local governmental services re¬
quired by

707,

helping
fast

meets diffi¬

area

(population)

states.

be

Boeing

manufactured

showed substantial gains.

cult

Fairchild F-27,
Lockheed

Electrical

Carolina

South

and

it

of the

any

Gulfstream,

and
West
Virginia decreased in popula¬
tion
during the past decade,
while Maryland, Virginia, North
Carolina

and

complex fuel
and electrical systems on the Vis¬

Columbia

of

t

pansions

are

handle

Richmond, in its November Re¬
view, pointed out that the Dis¬
trict

overhauling
components for the

Electra

Lockheed

of

Bank

Reserve

currently

is

system

count,

Federal

days are more
cheerful
days.
The
sunshine
states
are
the
fast
growing
things

is

facility
fuel

suburban

There

are

perspective in mind, Airwork's aggressive management
proceeded to establish a jet acces¬
sory service shop in Miami. This

2-1990

Teletype
-

BS

69

,: